TCRLA_Public/070116.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 16, 2007, Vol. 8, Issue 11

                          Headlines

A R G E N T I N A

ALLIS-CHALMERS: S&P Raises Corporate Credit Rating to B from B-
AGILENT TECH: S&P Lifts Corporate Credit Rating to BBB- from BB+
IRSA INVERSIONES: S&P Assigns B+ Corporate Credit Rating
LA SEGUNDA COOPERATIVA: Moody's Affirms B2 Fin. Strength Rating
LA SEGUNDA ART: Moody's Affirms B2 Financial Strength Rating

PASELEDA SRL: Deadline for Claims Verification Is on March 21
PLUS SRL: Claims Verification Deadline Is on Feb. 16
PLUSPACK SA: Last Day for Claims Verification Is on Feb. 28
POSTA DEL ESPINILLO: Claims Verification Is Until March 16
RAMJET SRL: Trustee Verifies Proofs of Claim Until May 2

REARTE-LARRAN: Reorganization Proceeding Concluded
RODOLFI SARA: Names Ana Bilbao as Bankruptcy Trustee
SOLUCIONES HARD: Deadline for Claims Verification Is on Feb. 14
SHERLOCK SA: Last Day for Claims Verification Is on March 5
SIIPA SRL: Proofs of Claim Verification Is Until Feb. 5

YPF SA: Repsol Deploys Cisco for Latin American Communications
VALEANT PHARMA: Inks Licensing Agreement for Rights to (C)Xyrem

* ARGENTINA: Implements Tax Hike on Soybean Exports

B A H A M A S

PINNACLE ENT: Prices Offering of 10 Mln Shares of Common Stock
WINN-DIXIE: Has 54 Million Outstanding Shares of Common Stock

B E R M U D A

C TANKER: To Hold Final General Meeting on Feb. 7
CAPCOUNT (BERMUDA): Final General Meeting Is on Feb. 12
PARAISO LTD: Final Shareholders Meeting Is on Jan. 21
REFCO INC: RCM Trustee Withdraws Objection to PlusFunds' Claims
REFCO INC: Wants West Loop's Claims Reduced

TONINAS LTD: Shareholders to Gather for Final Meeting on Jan. 21
VILLAIR LTD: Last Day for Proofs of Claim Filing Is on Feb. 12

B O L I V I A

* BOLIVIA: State Mining Firm May Invest US$500 Million in Sector

B R A Z I L

ACTUANT CORP: Earns US$25.1 Mil. in First Quarter Ended Nov. 30
ALERIS INT: Discloses Management Promotions
BANCO BRADESCO: Launching First Investment Fund on Market
BANCO BRADESCO: Unit Inks Insurance Contract with Chevron
BANCO CRUZEIRO: Central Bank Okays Firm's Capital Increase

BANCO DO BRASIL: Pushing Mobile Banking in Brazil
BENQ CORP: Sentex Sensing Presents Business Model to Creditors
COMPANHIA ENERGETICA: Moody's Rates US$250 Mil. Notes at Ba3
COMPANHIA SIDERURGICA: Completing Slab Project Study This Month
DURA AUTO: Discloses David L. Harbert's Terms of Employment

DURA AUTOMOTIVE: Panel Taps Young Conaway as Bankr. Co-Counsel
DURA AUTOMOTIVE: US Trustee Objects to Miller Buckfire Retention
ELETROPAULO METROPOLITANA: Sao Paulo Authorities Probing Firm
VOLKSWAGEN AG: Porsche CEO Wiedeking Calls for Company Changes
METSO OYJ: Names Juhani Suvinen as Valmet Automotive President

PROPEX INC: Moody's Revises Debt Rating Outlook to Negative
PROPEX INC: S&P Cuts Corporate Credit Rating to B- from B+
TELE NORTE: Raises Non-Convertible Debenture Issue to BRL250MM

C A Y M A N   I S L A N D S

ADVANTAGE ADVISERS: Final Shareholders Meeting Is on Jan. 17
CAPITAL Z: Deadline for Proofs of Claim Filing Is on Jan. 18
BARRAMUNDI FUND: Deadline for Proofs of Claim Filing Is Jan. 24
DIA RAILROAD: Proofs of Claim Filing Deadline Is on Jan. 18
EQUITABLE PCI: Proofs of Claim Filing Deadline Is on Jan. 22

EUROPEAN PSYCHIC: Sets Final Shareholders Meeting on Jan. 18
EXIS HOLDINGS: Shareholders to Convene for Jan. 18 Final Meeting
HMTF POULTRY: Calls Shareholders for Final Meeting on Jan. 18
IRP SECOND: Shareholders to Gather for Final Meeting on Jan. 23
KINGFISHER LTD: Final Shareholders Meeting Is on Jan. 17

LRM SECOND: Liquidator to Present Wind Up Accounts on Jan. 23
NATIONAL AEROSPACE: Proofs of Claim Filing Deadline Is Jan. 17
NATIONAL AEROSPACE: Final General Meeting Is on Jan. 24

C H I L E

ARAMARK CORP: Moody's Affirms (P)Ba3 Rating on US$4.15-Bil. Loan
ARAMARK CORP: S&P Says Loan Add-Ons Won't Affect Debt Ratings

C O L O M B I A

NOVELL INC: Asserts Inevitable Bankruptcy of SCO Group
SCO GROUP: Denies Looming Bankruptcy Rumors from Novell

C O S T A   R I C A

PERKINELMER INC: Completes Euroscreen & Evotec Acquisitions

D O M I N I C A N   R E P U B L I C

AHORROS Y PRESTAMOS: Liquidation Proceeding Concluded
BANCO INTERCONTINENTAL: Justice Ministry Dumps Some Evidence
SMURFIT KAPPA: Confirms Possible Initial Public Offering Plans
SMURFIT KAPPA: S&P Puts B+ Rating on Watch Positive on IPO Plans

* DOMINICAN REPUBLIC: Seeks European Deal for Sugar Industry

E C U A D O R

ADVANCED MICRO: Shares Drop 10% as Lower Prices Cut Profit

* ECUADOR: Bondholders Positive President Won't Default on Debts

G U A T E M A L A

BANCO DE COMERCIO: Guatemala Suspending Bank's Operations

* GUATEMALA: Suspending Banco de Comercio's Operations

H O N D U R A S

* HONDURAS: Government to Control Exxon, Chevron Oil Terminals

J A M A I C A

AIR JAMAICA: Responding to Union's Proposals This Week
DYOLL INSURANCE: Earl Witter May Handle Insurance Payment Clash

M E X I C O

ADVANCED MARKETING: Hachette Book Blocks US$75-Mln DIP Financing
ADVANCED MARKETING: Taps Richards Layton as Local Bankr. Counsel
ADVANCED MARKETING: Wants to Hire O'Melveny as Bankruptcy Atty.
DELTA AIR: S&P Says Ratings Unaffected by US Airways Higher Bid
GENERAL MOTORS: Outlines Priorities for 2007 & Increases CapEx

GRUPO GIGANTE: Market Chain Picks KSS for Price Optimization
FORD MOTOR: CEO Alan Mulally Considers Selling Jaguar Brand
FORD MOTOR: Closing Plants & Cutting Jobs Ahead of Schedule
KANSAS CITY SOUHERN: Declares Dividends on Preferred Stock
SONIC CORP: Moody's Withdraws Ba3 Corporate Family Rating

TV AZTECA: To Launch Eight High Definition Films at NATPE
WERNER LADDER: Court Okays Mercer as Human Resources Consultant

* MEXICO: Discloses Results of Dutch Auction for Old Bonds
* MEXICO: Discloses UST Benchmark Rate for Dutch Auction
* MEXICO: Repurchases US$2.8 Bil. in Bonds with Cash & New Debts

N I C A R A G U A

PETROLEOS DE VENEZUELA: Makes Third Fuel Shipment to Nicaragua

P A N A M A

BANCO GENERAL: Focusing on Closing Merger with Continental
CLIENTLOGIC CORP: SITEL Shareholders Approve Proposed Merger
CLIENTLOGIC CORP: S&P Lifts Corporate Credit Rating to B+ from B
SOLO CUP: Fitch Assigns B- Issuer Default Rating

P U E R T O   R I C O

ADELPHIA COMMS: Effective Date of Plan Extended Until Friday
DAVID'S BRIDAL: Moody's Assigns B2 Corporate Family Rating
DAVID'S BRIDAL: S&P Assigns B Corporate Credit Rating
DORAL FINANCIAL: Shareholders May Face Dilution, Analysts Say
PILGRIM'S PRIDE: Names Wayne Lord as VP of Governmental Affairs

MAIDENFORM BRANDS: S&P Revises Rating Outlook to Positive

V E N E Z U E L A

DAIMLERCHRYSLER AG: CEO Expresses Support for Chrysler Chief
PETROLEO BRASILEIRO: Forming Joint Ventures with PDVSA
PETROLEOS DE VENEZUELA: Forming Joint Ventures with Petrobras

* VENEZUELA: Gov't Says It Will Pay Companies in Nationalization
* VENEZUELA: J.P. Morgan Pares Rating on Sovereign Bonds
* VENEZUELA: Treasury Promises to Compensate CANTV Shareholders
* Fitch Reviews Latin America Structured Finance in 2006
* Large Companies with Insolvent Balance Sheets


                         - - - - -


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


ALLIS-CHALMERS: S&P Raises Corporate Credit Rating to B from B-
---------------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit
rating on oilfield services company Allis-Chalmers Energy Inc.
to 'B' from 'B-'.

At the same time, Standard & Poor's assigned its 'B' rating to
the company's proposed US$225 million senior notes due 2017.  
The outlook is stable.  Pro forma for the notes issuance,
Houston, Texas-based Allis-Chalmers has US$497 million in debt.

"The upgrade reflects good operating performance, adherence to
stated financial policy, and meaningful improvements in the
company's scale and product offerings over the past year," said
Standard & Poor's credit analyst David Lundberg.     

The company has made a series of acquisitions and increased pro
forma EBITDA to US$158 million for the 12 months ended
Sept. 30, 2006, as compared with US$37 million when first rated
by Standard & Poor's in January 2006.   The acquisitions have
strengthened the company's position in the rental tool business
in particular, and have expanded the company's presence in the
offshore Gulf of Mexico and into Argentina.

Management has also displayed a willingness to maintain
financial leverage in the 3x debt to EBITDA area.   With the
equity offering planned for later this month, Allis will have
issued common stock in the secondary markets twice during the
past 12 months, in addition to providing some amount of common
stock to sellers in all five of its acquisitions in 2006.

The proposed notes, along with a concurrent equity offering,
will repay the amount outstanding under a US$300 million bridge
loan that Allis used to finance its acquisition of Oil & Gas
Rental Services Inc. in December 2006.

The outlook is stable.

Standard & Poor's recognizes that industry trends for oilfield
services should remain favorable in the near term and that
Allis' cash flows should remain relatively strong in 2007,
absent a sharp decline in commodity prices.

Standard & Poor's expects the company to continue to be
acquisitive and maintain a debt to EBITDA ratio of around 3x.  
Any further positive rating actions are contingent on Allis'
ability to meet financial targets and integrate acquired
properties successfully.  Worse-than-expected financial results,
whether due to deteriorating industry fundamentals or company-
specific issues, could result in a negative rating action.  Any
leveraging acquisitions could also pressure ratings.


AGILENT TECH: S&P Lifts Corporate Credit Rating to BBB- from BB+
----------------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit
rating on Palo Alto, Calif.-based Agilent Technologies Inc. to
'BBB-' from 'BB+', and removed it from CreditWatch, where it was
placed with positive implications on Dec. 6, 2006. The rating
outlook is stable.

"The upgrade reflects the recent completion of various strategic
actions, which have resulted in the transformation of Agilent
into a pure-play measurement company," said Standard & Poor's
credit analyst Ben Bubeck.  Agilent's remaining businesses,
focused on electronic and bio-analytical measurement, are
expected to demonstrate lower volatility than the previous
portfolio, which included a substantial exposure to the more-
volatile semiconductor sector.

The rating on Agilent reflects an improved operating profile
following the divestiture of various business units, Standard &
Poor's expectation for improved and more stable operating
margins, and a modest financial risk profile.  These are
partially offset by a limited track record of both performance
and financial policy following substantial divestitures and
restructuring actions and continued exposure to cyclical end
markets.

With annual revenues of approximately US$5 billion, Agilent is a
leading provider of electronic and bio-analytical measurement
solutions to the electronics, communications, life sciences, and
chemical analysis industries.  Agilent had approximately US$1.8
billion of operating lease- and pension-adjusted debt as of
October 2006.

Agilent Technologies, Inc. -- http://www.agilent.com/-- is a
measurement company providing core bio-analytical and electronic
measurement solutions to the communications, electronics, life
sciences and chemical analysis industries.  The company has
operations in Argentina, India and Luxembourg.

                        *     *     *

As reported in the Troubled Company Reporter on Dec. 13, 2006,
Moody's Investors Service upgraded both the corporate family
rating and probability of default rating of Agilent Technologies
Inc. to Ba1 from Ba2 and revised the outlook to positive.  In
addition, Moody's also affirmed the company's speculative grade
liquidity rating at SGL-1.

As reported on Dec. 12, 2006, Standard & Poor's Ratings Services
placed its 'BB+' corporate credit rating on Palo Alto,
California-based Agilent Technologies Inc. on CreditWatch with
positive implications.


IRSA INVERSIONES: S&P Assigns B+ Corporate Credit Rating
--------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B+' corporate
credit rating to Argentina-based real estate company IRSA
Inversiones y Representaciones SA.  At the same time, S&P  
assigned a 'B+' rating to an upcoming issuance of US$150 million
10-year bullet bonds.  The outlook is stable.
      
"The ratings on IRSA reflect the company's geographical
concentration in the highly cyclical Argentine real estate
market," said Standard & Poor's credit analyst Luciano Gremone.  
"These factors are partially offset by the company's strong
market position, a moderate consolidated debt level in relation
to its strong asset base, and the quality and good location of
its diverse asset portfolio," Mr. Gremone continued.
     
IRSA will use the new debt primarily to finance capital
expenditures, particularly its recently closed acquisition of
the Republica and La Nacion office buildings.  The company
intends to maintain a portion of the issuance in cash to fund
future business opportunities, which it may opportunistically
move forward.
     
Standard & Poor's expects IRSA to deploy a fairly aggressive
growth strategy and invest about US$200 million to US$250
million in fiscal 2007 and 2008 to continue to actively expand
its office and residential portfolio through developments and
acquisitions, such as the Santa Maria residential development
and other office buildings.
     
Total debt will rise to US$290 million after the issuance, from
about US$100 million as of September 2006, but the increase in
leverage will be somewhat offset by the expectation that most of
the new projects will start producing revenues very soon after
the acquisition.
     
The stable outlook reflects Standard & Poor's expectations that
the company will carry out its growth strategy mainly by
developing rentals and other assets that produce revenues
quickly.
     
An upgrade would require an improvement in Argentina's business
environment that could translate into more predictable
performance in the real estate market in the country.  The
rating and/or outlook could come under pressure if macroeconomic
conditions negatively affect property or rental prices, if the
company's growth strategy becomes more aggressive, or if
adjusted EBITDA interest coverage and adjusted FFO deteriorate
to less than 2x and 15%, respectively.


LA SEGUNDA COOPERATIVA: Moody's Affirms B2 Fin. Strength Rating
---------------------------------------------------------------
Moody's Latin America affirmed La Segunda Cooperativa's B2
insurance financial strength rating with a stable outlook and
has placed the company's A2.ar insurance financial strength
rating on the Argentina national scale on review for possible
upgrade.

In addition, Moody's affirmed both the B2 and A1.ar insurance
financial strength ratings of the subsidiary, La Segunda ART,
which is 74% owned by La Segunda Cooperativa and 11.7% by
Asociacion de Cooperativas Argentinas. The outlooks for these
ratings are all stable.

La Segunda Cooperativa is the property & casualty insurer of the
regional La Segunda Group, which comprises:

   -- La Segunda ART;
   -- La Segunda Personas; and
   -- La Segunda Retiro.

La Segunda Cooperativa specializes in underwriting personal
lines insurance and coverages for small and medium-size
companies distributed mainly through local brokers or producers.
These relationships have proven to be very steady for the
cooperative.

The rating agency explained that the B2 IFS rating on La Segunda
is based on its fine market share, brand recognition and its
good profitability.  La Segunda is one of the top ten property
and casualty primary insurers in Argentina, holding an overall
market share of 3.3% in the general insurance sector and is
among the top three insurers in the important province of
Province of Santa Fe.

Moody's said, however, that although the company's underwriting
expense ratio compares unfavorably on a global basis, it is in
line with or even somewhat better than the average of the
Argentine national market.  Finally, the company's five-year
return on average equity was 6.6%, in line with a global Baa
rating category.

Moody's also cited another important factor behind its B2 IFSR
rating -- the company's relatively low underwriting leverage
relative to the median of B2-rated companies.

Commenting on some negative credit factors or concerns, Moody's
noted La Segunda's relative lack of business diversification and
its underwriting losses are both a credit weakness relative to
the highest rated companies in the region.  La Segunda's overall
underwriting risk is highly connected to the cycles of the motor
business line, which is usually highly volatile and has not been
profitable.  Motor business represents 63% of its total net
written premiums and hail/crop insurance make up another 20%.  
The motor business line includes third party liability coverage
for car accidents, which is usually considered one of the
longest tail business in Argentina.

Moody's emphasized that La Segunda's B2 global insurance
financial strength rating is also influenced by Argentina's
country ceiling for local currency bonds and bank deposits, that
can depress its assets quality.  At present, a significant part
of La Segunda's assets are investments exposed to Argentine
sovereign risk, which are essentially speculative grade.  
However, the cooperative holds approximately 16% of its total
cash and invested assets in investment-grade bank deposits in
New York and in shares of mutual funds.  Moody's further notes
as positive that the company's use of reinsurance is sparing,
and the absence of goodwill on its balance sheet.

Regarding La Segunda's A2.ar national scale rating, Moody's
noted that the review for possible upgrade is prompted primarily
by the company's continued relatively strong performance --
despite a high reliance on investment returns -- as measured by
its returns on equity over the last three years which have
averaged about 10%, and on its controlled underwriting leverage.  
The Cooperative continues to serve a growing and ample base of
clients, being one of the top three insurance providers in the
important province of Santa Fe.  Moody's review will focus on
the sustainability of La Segunda's operating performance and
leverage profile.

In Moody's opinion, a positive rating action could emerge if the
company continues to demonstrate returns on equity in the 10%
range, sustained strong market presence, and if its gross
underwriting leverage reduced to the vicinity of 3x adjusted
shareholder's equity.  Conversely, certain factors could have a
negative effect on the rating.  In this regard, Moody's cited an
additional increase in gross leverage -- above 6 times - coupled
with a reduciton in market-share, or with an operating loss
leading to a decline in capital of 15% or more over a one year
period.

Related rating action

In the same rating action, Moody's affirmed its B2 IFS rating of
La Segunda Aseguradora de Riesgos del Trabajo SA aka La Segunda
ART.  This affirmation reflects the subsidiary's good market
share in its specific market segment as well as the brand
recognition, support and commercial integration with its main
shareholder -- La Segunda Cooperativa.  The agency also pointed
to the company's relatively low expense ratio as a positive
factor behind its affirmation.  Meanwhile, the rating also
incorporates weaknesses such as La Segunda ART's high gross
underwriting leverage, poor asset quality, and declining
profitability during the last three fiscal years.

The company's high gross underwriting leverage stood at more
than 10x its shareholder's equity at year-end 2006, which was
the highest level among its peers.  Regarding profitability,
although it reported net profits in three of the last 5 years,
those profits were relatively modest, primarily as a result of
accrued premiums receivables.  However, the company's
underwriting results were less volatile than the average of its
peers in the B category.

For La Segunda, relative to its B2 global rating, a positive
rating action could result from a sustained and enhanced level
of profitability and a reduction in gross underwritting leverage
to approximately 5x adjusted shareholders' equity.

Furthermore, an upgrade of the company's majority shareholder,
La Segunda Cooperativa, would likely have positive implications
for La Segunda ART's outlook and its rating.  Conversely, a
reduction in market-share or other business impairments
resulting from ongoing reform of the current legal and
regulatory framework and a more exposed labor force due to an
increase in economic activity, or operating losses leading to a
decline in capital of 15% or more over a one year period could
result in a downgrade.  Finally, a downgrade of La Segunda
Cooperativa would also likely have negative implications for La
Segunda ART's outlook and its rating.

Based in Rosario, Argentina, La Segunda Cooperativa reported a
net profit of ARS6.45 million during the first quarter of 2007
fiscal year, ended September 30, 2006.  During the first
quarter, shareholders' equity rose by 5.6%, to ARS164.6 million
from ARS155.9 million and included the capital contributions
from policyholders, which reflects the company's status as a
cooperative institution.  La Segunda ART reported a net profit
of ARS1.3 million during the first quarter of 2007 fiscal year
and its shareholder's equity rose by 5.2%, to ARS25.8 million
from ARS24.5 million, as of June 30, 2006.


LA SEGUNDA ART: Moody's Affirms B2 Financial Strength Rating
------------------------------------------------------------
Moody's Latin America affirmed La Segunda Cooperativa's B2
insurance financial strength rating with a stable outlook and
has placed the company's A2.ar insurance financial strength
rating on the Argentina national scale on review for possible
upgrade.

In addition, Moody's affirmed both the B2 and A1.ar insurance
financial strength ratings of the subsidiary, La Segunda ART,
which is 74% owned by La Segunda Cooperativa and 11.7% by
Asociacion de Cooperativas Argentinas.  The outlooks for these
ratings are all stable.

La Segunda Cooperativa is the property & casualty insurer of the
regional La Segunda Group, which comprises:

   -- La Segunda ART;
   -- La Segunda Personas; and
   -- La Segunda Retiro.

La Segunda Cooperativa specializes in underwriting personal
lines insurance and coverages for small and medium-size
companies distributed mainly through local brokers or producers.
These relationships have proven to be very steady for the
cooperative.

The rating agency explained that the B2 IFS rating on La Segunda
is based on its fine market share, brand recognition and its
good profitability.  La Segunda is one of the top ten property
and casualty primary insurers in Argentina, holding an overall
market share of 3.3% in the general insurance sector and is
among the top three insurers in the important province of
Province of Santa Fe.

Moody's said, however, that although the company's underwriting
expense ratio compares unfavorably on a global basis, it is in
line with or even somewhat better than the average of the
Argentine national market.  Finally, the company's five-year
return on average equity was 6.6%, in line with a global Baa
rating category.

Moody's also cited another important factor behind its B2 IFSR
rating -- the company's relatively low underwriting leverage
relative to the median of B2-rated companies.

Commenting on some negative credit factors or concerns, Moody's
noted La Segunda's relative lack of business diversification and
its underwriting losses are both a credit weakness relative to
the highest rated companies in the region.  La Segunda's overall
underwriting risk is highly connected to the cycles of the motor
business line, which is usually highly volatile and has not been
profitable.  Motor business represents 63% of its total net
written premiums and hail/crop insurance make up another 20%.  
The motor business line includes third party liability coverage
for car accidents, which is usually considered one of the
longest tail business in Argentina.

Moody's emphasized that La Segunda's B2 global insurance
financial strength rating is also influenced by Argentina's
country ceiling for local currency bonds and bank deposits, that
can depress its assets quality.  At present, a significant part
of La Segunda's assets are investments exposed to Argentine
sovereign risk, which are essentially speculative grade.  
However, the cooperative holds approximately 16% of its total
cash and invested assets in investment-grade bank deposits in
New York and in shares of mutual funds.  Moody's further notes
as positive that the company's use of reinsurance is sparing,
and the absence of goodwill on its balance sheet.

Regarding La Segunda's A2.ar national scale rating, Moody's
noted that the review for possible upgrade is prompted primarily
by the company's continued relatively strong performance --
despite a high reliance on investment returns -- as measured by
its returns on equity over the last three years which have
averaged about 10%, and on its controlled underwriting leverage.  
The Cooperative continues to serve a growing and ample base of
clients, being one of the top three insurance providers in the
important province of Santa Fe.  Moody's review will focus on
the sustainability of La Segunda's operating performance and
leverage profile.

In Moody's opinion, a positive rating action could emerge if the
company continues to demonstrate returns on equity in the 10%
range, sustained strong market presence, and if its gross
underwriting leverage reduced to the vicinity of 3x adjusted
shareholder's equity.  Conversely, certain factors could have a
negative effect on the rating.  In this regard, Moody's cited an
additional increase in gross leverage -- above 6 times - coupled
with a reduciton in market-share, or with an operating loss
leading to a decline in capital of 15% or more over a one year
period.

Related rating action

In the same rating action, Moody's affirmed its B2 IFS rating of
La Segunda Aseguradora de Riesgos del Trabajo SA aka La Segunda
ART.  This affirmation reflects the subsidiary's good market
share in its specific market segment as well as the brand
recognition, support and commercial integration with its main
shareholder -- La Segunda Cooperativa.  The agency also pointed
to the company's relatively low expense ratio as a positive
factor behind its affirmation.  Meanwhile, the rating also
incorporates weaknesses such as La Segunda ART's high gross
underwriting leverage, poor asset quality, and declining
profitability during the last three fiscal years.

The company's high gross underwriting leverage stood at more
than 10x its shareholder's equity at year-end 2006, which was
the highest level among its peers.  Regarding profitability,
although it reported net profits in three of the last 5 years,
those profits were relatively modest, primarily as a result of
accrued premiums receivables.  However, the company's
underwriting results were less volatile than the average of its
peers in the B category.

For La Segunda, relative to its B2 global rating, a positive
rating action could result from a sustained and enhanced level
of profitability and a reduction in gross underwritting leverage
to approximately 5x adjusted shareholders' equity.

Furthermore, an upgrade of the company's majority shareholder,
La Segunda Cooperativa, would likely have positive implications
for La Segunda ART's outlook and/or its rating.  Conversely, a
reduction in market-share or other business impairments
resulting from ongoing reform of the current legal and
regulatory framework and a more exposed labor force due to an
increase in economic activity, or operating losses leading to a
decline in capital of 15% or more over a one year period could
result in a downgrade.  Finally, a downgrade of La Segunda
Cooperativa would also likely have negative implications for La
Segunda ART's outlook and its rating.

Based in Rosario, Argentina, La Segunda Cooperativa reported a
net profit of ARS6.45 million during the first quarter of 2007
fiscal year, ended Sept. 30, 2006.  During the first quarter,
shareholders' equity rose by 5.6%, to ARS164.6 million from
ARS155.9 million and included the capital contributions from
policyholders, which reflects the company's status as a
cooperative institution.  La Segunda ART reported a net profit
of ARS1.3 million during the first quarter of 2007 fiscal year
and its shareholder's equity rose by 5.2%, to ARS25.8 million
from ARS24.5 million, as of June 30, 2006.


PASELEDA SRL: Deadline for Claims Verification Is on March 21
-------------------------------------------------------------
Jorge Ernesto del Hoyo, the court-appointed trustee for Paseleda
SRL's bankruptcy proceeding, will verify creditors' proofs of
claim until March 21, 2007.

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

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

Jorge Ernesto del Hoyo will also submit a general report that
contains an audit of Paseleda SRL's accounting and banking
records.  The report submission dates have not been disclosed.

The debtor can be reached at:

          Paseleda SRL
          Cabello 3772
          Buenos Aires, Argentina  

The trustee can be reached at:

          Jorge Ernesto del Hoyo
          Cerrito 484
          Buenos Aires, Argentina


PLUS SRL: Claims Verification Deadline Is on Feb. 16
----------------------------------------------------
Jorge Raul Cicarilli, the court-appointed trustee for Plus SRL's
reorganization proceeding, will verify creditors' proofs of
claim until Feb. 16, 2007.

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

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

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

Plus SA's creditors will vote on a settlement plan that the
company will lay on the table.

The debtor can be reached at:

          Plus SA
          San Martin 2360
          Santa Fe, Argentina  

The trustee can be reached at:

          Jorge Raul Cicarilli
          Boulevard Galvez 1217
          Santa Fe, Argentina


PLUSPACK SA: Last Day for Claims Verification Is on Feb. 28
-----------------------------------------------------------
A court-appointed trustee for Pluspack SA's reorganization
proceeding, will verify creditors' proofs of claim until
Feb. 28, 2007.

The Trustee will present the validated claims in court as
individual reports on April 17, 2007.  A court in Buenos Aires
will then determine if the verified claims are admissible,
taking into account the trustee's opinion and the objections and
challenges raised by Pluspack 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 Pluspack SA's
accounting and banking records will follow on June 1, 2007.


POSTA DEL ESPINILLO: Claims Verification Is Until March 16
----------------------------------------------------------
A court-appointed trustee for Posta del Espinillo SA's
bankruptcy proceeding, will verify creditors' proofs of claim
until March 16, 2007.

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

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

The Trustee will also submit a general report that contains an
audit of Posta del Espinillo's accounting and banking records.  
The report submission dates have not been disclosed.

The debtor can be reached at:

          Posta del Espinillo SA
          Ruta Nacional Nro. 9
          Marco Juarez
          Cordoba, Argentina  


RAMJET SRL: Trustee Verifies Proofs of Claim Until May 2
--------------------------------------------------------
Martin Casares, the court-appointed trustee for Ramjet SRL's
bankruptcy proceeding, verifies creditors' proofs of claim until
May 2, 2007.

Mr. Casares will present the validated claims in court as
individual reports on June 21, 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 Ramjet SRL and its creditors.

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

A general report that contains an audit of Ramjet SRL'
accounting and banking records will follow on August 22, 2007.

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

The debtor can be reached at:

         Ramjet SRL
         Jose Ingenieros 3464, Beccar
         Buenos Aires, Argentina

The trustee can be reached at:

         Martin Casares
         Centenario 566, San Isidro
         Buenos Aires, Argentina  


REARTE-LARRAN: Reorganization Proceeding Concluded
--------------------------------------------------
Rearte-Larran SH's reorganization proceeding has ended.  Data
published by Infobae on its Web site indicated that the process
was concluded after a court in Salta approved the debt agreement
signed between the company and its creditors.


RODOLFI SARA: Names Ana Bilbao as Bankruptcy Trustee
----------------------------------------------------
A court in Santa Fe appointed Ana Bilbao to supervise the
reorganization proceeding of Rodolfi Sara NT.  Under
reorganization protection, control of the company's assets is
transferred to Ms. Bilbao.

As trustee, Ms. Bilbao will:

   -- verify creditors' proofs of claim;

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

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

The trustee can be reached at:

          Ana Bilbao
          Riva Davia 208, San Lorenzo
          Santa Fe, Argentina


SOLUCIONES HARD: Deadline for Claims Verification Is on Feb. 14
---------------------------------------------------------------
Juan Marcelo Villoldo, the court-appointed trustee for
Soluciones Hard Pilar SA's bankruptcy proceeding, will verify
creditors' proofs of claim until Feb. 14, 2007.

Under the Argentine bankruptcy law, Mr. Villoldo is required to
present the validated claims in court as individual reports.  
Court No. 6 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 Soluciones Hard and
its creditors.

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

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

Soluciones Hard was forced into bankruptcy at the behest of
Jordan Morrison SRL, whom it owes US$14,542.08.

Clerk No. 11 assists the court in the proceeding.

The debtor can be reached at:

          Soluciones Hard Pilar SA
          Teniente General Juan Domingo Peron 1730
          Buenos Aires, Argentina  

The trustee can be reached at:

          Juan Marcelo Villoldo
          Uruguay 651
          Buenos Aires, Argentina


SHERLOCK SA: Last Day for Claims Verification Is on March 5
-----------------------------------------------------------
Norberto Abel Mosca, the court-appointed trustee for Sherlock
SA's reorganization proceeding, will verify creditors' proofs of
claim until March 5, 2007.

Mr. Mosca will present the validated claims in court as
individual reports on April 20, 2007.  A court in Buenos Aires
will then determine if the verified claims are admissible,
taking into account the trustee's opinion and the objections and
challenges raised by Sherlock 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 Sherlock SA's
accounting and banking records will follow on June 4, 2007.

The trustee can be reached at:

          Norberto Abel Mosca
          Calle 22 Nro. 922 Mercedes
          Buenos Aires, Argentina


SIIPA SRL: Proofs of Claim Verification Is Until Feb. 5
-------------------------------------------------------
Leonardo Benjamin Lavaque, the court-appointed trustee for Siipa
SRL's reorganization proceeding, will verify creditors' proofs
of claim until Feb. 5, 2007.

Mr. Lavaque will present the validated claims in court as
individual reports on March 14, 2006.  A court in Buenos Aires
will then determine if the verified claims are admissible,
taking into account the trustee's opinion and the objections and
challenges raised by Siipa SRL and its creditors.

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

A general report that contains an audit of Siipa SRL's
accounting and banking records will follow on April 30, 2007.

On Oct. 22, 2007, Siipa SRL's creditors will vote on a
settlement plan that the company will lay on the table.

The trustee can be reached at:

          Leonardo Benjamin Lavaque
          Adolfo Ganames 551, Tartagal
          Salta, Argentina


YPF SA: Repsol Deploys Cisco for Latin American Communications
--------------------------------------------------------------
Cisco Systems, a US networking equipment vendor, said in a
statement that it has upgraded YPF parent firm Repsol's Latin
American communications network.

Business News Americas relates that Cisco Systems deployed 2,800
Internet protocol telephone terminals for its solution Cisco
Call Manager and will continue to install more phones to serve
the Repsol's 15,000 workers in the region.

According to BNamericas, Repsol has spent US$3 million on the
equipment.

BNamericas emphasizes that Repsol deployed Internet protocol
technology in Spain and Argentina before deciding to use it to
other Latin American nations where it has operations like:

          -- Brazil,
          -- Chile,
          -- Ecuador,
          -- Colombia,
          -- Mexico,
          -- Peru, and
          -- Trinidad & Tobago.

Fernando Beninati, Cisco Argentina's account executive, told
BNamericas, "This project will allow Repsol YPF to have one of
the biggest IP (Internet protocol) telephony networks in Latin
America with coverage of most of Argentina and offices in the
main countries across the region."

The report says that the project may include the installation
of:

          -- videotelephony,
          -- videoconferencing, and
          -- unified messaging solutions.

Cisco Systems' technological partner for this project is
networking solutions integrator Softnet-Logicalis, which
provides consulting services and support for the platform,
BNamericas states.  

                    About Cisco Systems

Cisco Systems, Inc., designs, manufactures and sells networking
and other products related to the communications and information
technology industry, and provides services associated with these
products and their use.  Its products are installed at
corporations, public institutions, telecommunications companies,
and businesses of all sizes.  Cisco systems provides a line of
products for transporting data, voice, and video within
buildings, across campuses, and around the world.  

                       About YPF SA

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

                        *    *    *

Fitch Ratings assigned BB+ long-term issuer default rating on
YPF SA.  Fitch said the outlook is stable.

Moody's Investors Service assigned these ratings on YPF SA:

          -- B2 long-term foreign currency corporate family
             rating; and

          -- Ba2 foreign currency senior unsecured rating;

Moody's said the outlook is negative.


VALEANT PHARMA: Inks Licensing Agreement for Rights to (C)Xyrem
---------------------------------------------------------------
Valeant Pharmaceuticals International has signed a licensing
agreement for the Canadian rights to (C)Xyrem (sodium oxybate)
for the treatment of cataplexy, a debilitating symptom of
narcolepsy, from Jazz Pharmaceuticals, Inc. The agreement calls
for Valeant to pay Jazz Pharmaceuticals an upfront fee and
payments based on sales.

"Xyrem is a strategic fit for our existing marketing and sales
organizations in Canada and we are excited about the potential
of this agreement and the opportunity to work with Jazz
Pharmaceuticals," Valeant's president and chief executive
officer, Timothy C. Tyson said. "The product expands our
neurology business in Canada in a niche market with unmet
medical needs."

Xyrem, a liquid formulation of sodium oxybate, is the first and
only product approved in Canada to treat cataplexy, which is a
sudden loss of muscle tone associated with narcolepsy.  Valeant
expects to launch and distribute Xyrem in Canada in mid 2007
through its neurology sales force.

Xyrem has demonstrated an acceptable safety profile in
narcoleptics with cataplexy when administered in nightly divided
doses of 6 to 9 g with a recommended starting dose of 4.5
g/night.  The adverse event profile was generally consistent
with the known pharmacological actions of sodium oxybate and
intercurrent disease states.  The most commonly reported adverse
drug reactions are dizziness, nausea, and headache, occurring in
17-25 percent of patients.  These are not the only possible
effects with Xyrem.  Patients administered Xyrem should be
monitored for treatment-emergent adverse events.

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

                        *    *    *

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


* ARGENTINA: Implements Tax Hike on Soybean Exports
---------------------------------------------------
The Argentine government has implemented a tax hike from 24% to
27.5% on soybean exports and its products, the Associated Press
reports.  Soy byproduct taxes are also expected to increase to
24% from 20%.  This is a move by the government to ease the
inflation on basic consumer foods.  

The AP said, citing Econmy Minister Felisa Miceli, that the
added revenue from the increased export tax would be directed to
subsidies on producers of basic foodstuff and would raise an
added US$100 million in the coming year for these subsidies.  
This is to make up for the growing production costs.

Farmers and grain exporters are not happy with this tax hike
implementation, however Pres. Nestor Kirchner is intent on
keeping the prices in check for consumers that are still
recovering from the 2001-2002 economic crisis, the AP relates.  
The inflation for 2006, almost reached 10%.

Ms. Miceli told the AP that producers have to pay in dollars in
a peso economy, but the government is positive that through this
measure, the subsidies would lessen the producer's passing off
their costs to consumers.  

"This is a mechanism under which international prices can
increase without having this felt at the (dinner) table," Ms.
Miceli told the AP.

Argentine shave enjoyed for 11 years until December 2001 a peso
currency secured by law that is equal to the U.S. dollar but
crisis in that year effected a more than 70% depreciation of the
local peso that until now caused many badly eroded wages, the AP
relates.

The AP says that the tax hike was implemented on Monday
beginning with soy oil products that are exported to foreign
markets.

                        *    *    *

Fitch Ratings assigned these ratings on Argentina:

                     Rating     Rating Date
                     ------     -----------
   Country Ceiling     B+      Aug. 1, 2006
   Local Currency
   Long Term Issuer    B       Aug. 1, 2006
   Short Term IDR      B       Dec. 14, 2005
   Long Term IDR       RD      Dec. 14, 2005




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


PINNACLE ENT: Prices Offering of 10 Mln Shares of Common Stock
--------------------------------------------------------------
Pinnacle Entertainment, Inc., disclosed that the underwritten
public offering of 10.0 million of its newly issued shares of
common stock has been priced at US$32.00 per share, which will
result in gross proceeds to Pinnacle of US$320 million.  Bear,
Stearns & Co. Inc. and Lehman Brothers Inc. are acting as joint
book-running managers of the offering.  In addition, Deutsche
Bank Securities Inc. is acting as lead manager of the offering.

The offering is expected to close on Jan. 18, 2007, subject to
customary closing conditions.  The underwriters of the offering
have a 30-day option to purchase an additional 1.5 million
shares of common stock from Pinnacle.

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.

Copies of the 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
          Attn: 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.


WINN-DIXIE: Has 54 Million Outstanding Shares of Common Stock
-------------------------------------------------------------
Winn-Dixie Stores, Inc., pursuant to its Amended and Restated
Articles of Incorporation, disclosed that the number of the
outstanding shares of its common stock (that shareholders should
take into account in determining their percentage stock
ownership of the company) is 54 million shares.  

The company's Amended and Restated Articles of Incorporation
provide that, in certain circumstances, transfers of the
company's common stock by certain stockholders will be subject
to advance notice requirements and possible restriction or
prohibition.

A description of these restrictions and a complete copy of the
Amended and Restated Articles of Incorporation are included in
the company's Form 8-A/A, which was filed with the U.S.
Securities and Exchange Commission on Nov. 21, 2006, and may be
obtained at http://www.sec.gov

The 54 million share count that shareholders should use in
determining their percentage stock ownership of the company for
purposes of the transfer restrictions excludes options to
purchase 675,000 shares and restricted stock units relating to
405,000 shares which have been granted to Chairman and Chief
Executive Officer Peter Lynch under the management incentive
plan.  The company has authorization to issue a total of 5.4
million shares of common stock under the management incentive
plan.

Headquartered in Jacksonville, Florida, Winn-Dixie Stores, Inc.
-- http://www.winn-dixie.com/-- is one of the nation's largest
food retailers.  The Company operates 527 stores in Florida,
Alabama, Louisiana, Georgia, and Mississippi.  The Company,
along with 23 of its U.S. subsidiaries, filed for chapter 11
protection on Feb. 21, 2005 (Bankr. S.D.N.Y. Case No. 05-11063,
transferred Apr. 14, 2005, to Bankr. M.D. Fla. Case Nos.
05-03817 through 05-03840).  D.J. Baker, Esq., at Skadden
Arps Slate Meagher & Flom LLP, and Sarah Robinson Borders,
Esq., and Brian C. Walsh, Esq., at King & Spalding LLP,
represent the Debtors in their restructuring efforts.
Paul P. Huffard at The Blackstone Group, LP, gives
financial advisory services to the Debtors.  Dennis F. Dunne,
Esq., at Milbank, Tweed, Hadley & McCloy, LLP, and John B.
Macdonald, Esq., at Akerman Senterfitt give legal advice to the
Official Committee of Unsecured Creditors.  Houlihan Lokey &
Zukin Capital gives financial advisory services to the
Committee.  When the Debtors filed for protection from their
creditors, they listed US$2,235,557,000 in total assets and
US$1,870,785,000 in total debts.  The Honorable Jerry A. Funk
confirmed Winn-Dixie's Joint Plan of Reorganization on
Nov. 9, 2006.  Winn-Dixie emerged from bankruptcy on
Nov. 21, 2006.  (Winn-Dixie Bankruptcy News, Issue No. 62;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).




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


C TANKER: To Hold Final General Meeting on Feb. 7
-------------------------------------------------
C Tanker Ltd.'s final general meeting will be at 9:30 a.m. on
Feb. 7, 2007, or as soon as possible, at the liquidator's place
of business.

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

The liquidator can be reached at:

          Robin J. Mayor
          Messrs. Conyers Dill & Pearman,
          Clarendon House, Church Street
          Hamilton, Bermuda


CAPCOUNT (BERMUDA): Final General Meeting Is on Feb. 12
-------------------------------------------------------
Capcount (Bermuda) Ltd.'s final general meeting will be at 10:00
a.m. on Feb. 12, 2007, or as soon as possible, at the
liquidator's place of business.

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

The liquidator can be reached at:

         Jennifer Y. Fraser
         Canon's Court, 22 Victoria Street
         Hamilton, Bermuda


PARAISO LTD: Final Shareholders Meeting Is on Jan. 21
-----------------------------------------------------
Paraiso Ltd.'s final general meeting will be at 10:00 a.m. on
Jan. 21, 2007, or as soon as possible, at the liquidator's place
of business.

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

The liquidator can be reached at:

         James A.F. Watlington
         Alexanders 73
         Front Street, 4th Floor
         Hamilton, Bermuda


REFCO INC: RCM Trustee Withdraws Objection to PlusFunds' Claims
---------------------------------------------------------------
In a stipulation approved by the U.S. Bankruptcy Court for the
Southern District of New York, Marc S. Kirschner, Chapter 11
Trustee of Refco Capital Markets, Ltd., and Refco Inc. and its
debtor-affiliates agree to withdraw their objections to
PlusFunds Group, Inc.'s claims, with prejudice.

PlusFunds filed amended proofs of claim on Dec. 1, 2006.  The
parties agree that the Amended Claims will supersede all Claims
filed by PlusFunds in the Refco cases.

In addition, allowance of the Amended Claims against all the
Debtors and Refco LLC will, in the aggregate, be capped at
US$7,000,000.

PlusFunds will be required to establish in further proceedings
which Debtor, if any, is liable for the Amended Claim or Claims,
and in what amount.  The Debtors will establish reserves as
appropriate for a potential US$7,000,000 claim in the aggregate
against all the Debtors and Refco LLC.  The aggregate reserve
will be used to pay any allowed Amended Claim against any of the
Debtors and Refco LLC not exceeding US$7,000,000.  Any reserve
taken by a Debtor in connection with the US$7,000,000 cap will
reduce, dollar-for-dollar, the reserve amount that must be taken
by the other Debtors with respect to the Amended Claims.

If and to the extent the Amended Claims should be adjudicated as
a liability of RCM, the RCM Trustee will classify the Amended
Claim as a Class 3 RCM FX/Unsecured Claim under the Plan.

The parties reserve all rights with respect to the validity of
the Amended Claims as against any Debtor or Refco LLC, or
whether the same is subject to subordination.  The Debtors and
Refco LLC reserve the right to seek avoidance of any
preferential payment to PlusFunds.  PlusFunds reserves the right
to assert all defenses to the same.

On Dec. 7, 2006, PlusFunds cast ballots to reject the Plan in
the full amount of its Amended Claims.  Pursuant to the
Stipulation, the Ballots cast will not be counted for purposes
of numerosity, value or existence of the Amended Claims at any
or all of the Debtors.  However, any elections contained in any
Ballot will be deemed valid to the extent the applicable Amended
Claim is allowed.

PlusFunds withdraws its Plan confirmation objection with
prejudice and its request pursuant to Bankruptcy Rule 3018
seeking temporarily allowance of the Amended Claims for voting
purposes.

Prior to the stipulation, Marc S. Kirschner, Chapter 11 Trustee
of Refco Capital Markets, Ltd., asks Judge Drain to disallow and
expunge Claim No. 11289 filed by PlusFunds against RCM for
approximately US$532,000,000.

The Claim asserts entitlement to an amount precisely equal to a
US$312,000,000 preference cash, plus PlusFunds' "enterprise
value" of US$220,000,000 and "unliquidated damages in an amount
to be determined at trial" related to PlusFunds' lost management
fees.

Claim No. 11289 arose from the decline of PlusFunds' assets
under management in the wake of a preference action commenced by
the Official Committee of Unsecured Creditors against SPhinX
Managed Futures Fund SPC.

The SPhinX Preference Action sought to avoid a US$312,000,000
cash transfer placed with RCM by SPhinX to segregated customer
accounts at Refco, LLC.  The Preference Cash was then
transferred from Refco LLC outside of Refco entirely, to
accounts at Lehman Brothers.

Jared R. Clark, Esq., at Bingham McCutchen LLP, in New York,
relates that on October 13, 2005, Refco, Inc., and its
affiliates imposed a 15-day moratorium on withdrawals from RCM
accounts because of insufficient liquidity within RCM.  On
December 16, Judge Drain entered a temporary restraining order
freezing and attaching SPhinX's assets in an amount equal to the
Preference Cash.

To resolve the SPhinX Preference Action, the Creditors Committee
and SPhinX entered into a settlement, subsequently approved by
Judge Drain, providing for a US$263,000,000 payment to RCM.

The SPhinX Settlement is currently subject to appeal pending
before the U.S. District Court for the Southern District of New
York.

Mr. Clark tells Judge Drain that Claim No. 11289 fails to
articulate any facts that could serve as the basis for an
alleged breach of a contractual obligation or common law duty by
RCM.

Mr. Clark argues that the unspecified charge of wrongdoing does
not approach the level of particularity required for a fraud
claim under Rule 9(b) of the Federal Rules of Civil Procedure.  
Specifically, he states, the Claim does not allege with
particularity:

   (1) what statement or omission RCM made or failed to make;

   (2) scienter on the part of RCM;

   (3) how or whether PlusFunds replied; or

   (4) what specific injury resulted.

Furthermore, Mr. Clark contends that PlusFunds' general
allegations of breach of contract, breach of fiduciary duty,
aiding, abetting, and conspiracy are similarly unsubstantiated.
He notes that the Claim asserts breach of contract without
specifying the nature of the contract with RCM that PFGI replies
upon; duty without alleging a relationship; and conspiracy
without naming the cabalists.

"The Claim's general, innuendo-laden allegations themselves
demonstrate that nothing lies back of it; it is prima facie
invalid," Mr. Clark asserts.

To the extent the Claim suggests the SPhinX Transfer itself
started a chain of events leading to PlusFunds' collapse,
PlusFunds was the catalyst, Mr. Clark points out.  Therefore, he
says, PlusFunds' subsequent wounds were self-inflicted.

To the extent the Claim suggests that Refco's filing for
bankruptcy caused PlusFunds to lose value, PlusFunds fails to
state a cognizable claim, Mr. Clark maintains.

                      About Refco Inc.

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

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

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

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

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

Refco Commodity Management, Inc., formerly known as CIS
Investments, Inc., a debtor-affiliate of Refco Inc., filed for
chapter 11 protection on Oct. 16, 2006 (Bankr. S.D.N.Y. Case No.
06-12436).  (Refco Bankruptcy News, Issue No. 54; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or       
215/945-7000)

                        Plan Update

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

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

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


REFCO INC: Wants West Loop's Claims Reduced
-------------------------------------------
Refco Inc. and its debtor-affiliates ask the U.S. Bankruptcy
Court for the Southern District of New York to reduce Claim Nos.
9884 and 9887 so that their maximum amount cannot exceed the
statutory cap under Section 502(b)(6) of the Bankruptcy Code.

Refco Group Ltd., LLC, and 550 Jackson Associates Limited
Liability Company were parties to a lease dated April 24, 2001,
for an office space located at 550 West Jackson Boulevard, in
Chicago, Illinois.  West Loop Associates, Inc., acquired title
to the Premises, with an assignment of the Lease.

RGL rejected the Lease, effective as of August 15, 2006.

             West Loop Claim Nos. 9884 and 9887

West Loop filed Claim Nos. 9884 and 9887 against RGL asserting
damages equal to US$67,482,808 caused by:

   (1) RGL's breach and rejection of the Lease;

   (2) acts of occupants of the Premises during the term of the
       Lease that caused the filing of mechanic's liens against
       the Building;

   (3) RGL's fraudulent transfer of approximately
       US$1,325,000,000 to Refco Group Holdings, Inc., in
       connection with a leveraged recapitalization that left
       RGL undercapitalized and insolvent; and

   (4) RGL's fraud, including misrepresentations, omissions, and
       concealment of material facts with the intent to defraud
       West Loop.

Specifically, West Loop asserted that:

   (i) assuming that payment of rent remains current under the
       Lease until August 15, the base rent owed from August 16,
       2006, to March 31, 2015, will total US$36,159,764; and

  (ii) an additional rent is owed under the Lease from August 16
       to March 31, 2015, totaling approximately US$27,484,008.

Thus, according to West Loop, the Base Rent and Additional Rent
from August 16 to the end of the Lease total US$63,643,772.

Furthermore, West Loop held that the total rent reserved under
the Lease from the Petition Date until March 2015 is
US$69,041,563, of which 15% equals the US$10,256,235 Rejection
Claim Amount.

West Loop also asserted that it will incur additional estimated
damages for US$3,002,217 in commissions, and US$8,114,100 in
tenant improvement costs in connection with re-letting the
premises.

The Debtors object to West Loop's calculation of the Rejection
Claim Amount on the grounds that:

   (1) West Loop failed to include all of its claims relating to
       the rejection of the Lease that are subject to Section
       502(b)(6) cap, including its fraud-related damage
       claims, and the cost of re-letting the Premises,
       including the commissions.

   (2) rejection damage calculation is incorrect; and

   (3) the Building is in Illinois and, under Illinois law, West
       Loop has a duty to mitigate its damages, and has the
       burden of proving its mitigation.

In addition, the Debtors want West Loop's claim for
reimbursement of attorneys' fees and costs denied because West
Loop:

   -- did not provide documentation evidencing that it incurred
      no less than US$366,491 in attorneys' fees and costs; and

   -- has not demonstrated that the fees and costs are
      reimbursable for the full amount sought.

Moreover, the Debtors state that the attorneys' fees and costs
are subject to cap under Section 502(b)(6) of the Bankruptcy
Code.

Sally McDonald Henry, Esq., at Skadden, Arps, Slate, Meagher &
Flom LLP, in New York, tells the Court that there is no evidence
that RGL was insolvent in September 2005.  Since there was no
default, there could be no false statement of material fact in
the estoppel certificate.

Ms. Henry argues that there is no evidence that the RGL estoppel
certificate was issued to induce West Loop to act, or that RGL
received any benefit from executing the certificate.

Ms. Henry summons West Loop to demonstrate that its damages
result from relying on RGL's purported false statements.

The Debtors maintain that West Loop has not demonstrated that it
is entitled to recover additional estimated damages equal to
US$3,002,217 in commissions and US$8,114,100 in tenant
improvement costs with reletting the Premises.

The Debtors insist that even if the Lease allows West Loop to
recover the Reletting Claims, the costs of reletting the
Premises were caused by the rejection of the Lease, and, thus
should be capped under Section 502(b)(6).

                 West Loop Related Claims

The Debtors further ask the Court to disallow and expunge:

   (a) a master proof of claim -- Claim No. 11560 -- filed by
       West Loop against RGL and its affiliates, except Refco
       Capital Markets, Ltd., Refco, Inc., and Refco, LLC;

   (b) Claim Nos. 9885 and 9886 filed by West Loop against Refco
       asserting damages caused by Refco's fraud; and

   (c) Claim Nos. 9882 and 9883 filed by West Loop against New
       Refco Group Ltd., LLC, asserting claims to the extent
       New RGL (x) had knowledge of, or was involved in, the
       fraudulent activities of RGL, Refco LLC, and (y) received
       any benefit on account of the breaches or fraudulent
       activities of entities, or is found responsible for the
       conduct of the entities.

Ms. Henry insists that the Related Claims should be disallowed
because:

   (i) West Loop has not demonstrated that a fraud claim lies
       against RGL;

  (ii) West Loop did not specifically assert that the RGL
       Affiliates made any misleading misrepresentations that
       were relied on by West Loop resulting in damages, nor has
       West Loop shown any other basis on which entities other
       than RGL could be liable; and

(iii) West Loop's broad allegation that the RGL Affiliates are
       liable, to the extent that any or all of them had
       knowledge of or were involved in the fraudulent
       activities of Refco, Refco LLC, or RGL, received any
       benefit on account of the breaches or fraudulent
       activities of those entities or are found responsible for
       their conduct, does not satisfy Rule 9(b) of the Federal
       Rules of Civil Procedure.

To the extent that the Related Claims are not disallowed and
expunged in their entirety, the Debtors seek that they should be
subject to the Section 502(b)(6) cap because West Loop's
damages, if any, arise from RGL's rejection of the Lease.

          Debtors Seek Partial Summary Judgment

The Debtors ask Judge Drain to enter an order granting partial
summary judgment under Rule 7056 of the Federal Rules of
Bankruptcy Procedure and Civil Rule 56, finding that any fraud-
related damages asserted in the West Loop Claims are subject to
statutory limitation on lease rejection claims pursuant to
Section 502(b)(6).

Ms. Henry states that West Loop's recharacterization of its
lease termination damages claim to a fraud claim is irrelevant.  
There was a landlord-tenant relationship between West Loop and
RGL.  West Loop's fraud claim is a claim arising from the
termination of a lease, she says.

Ms. Henry maintains that even if the Court favors West Loop, the
asserted fraud-related damages should be subject to Section
502(b)(6) limitation on lease termination damage claims.

The Official Committee of Unsecured Creditors supports the
Debtors' position.

                     West Loop Responds

A. Brent Truitt, Esq., at Hennigan, Bennett & Dorman LLP, in New
York, argues that West Loop's fraud claim and the damages
arising from that claim are factually and legally independent
and distinct from any claims and damages that resulted from
RGL's rejection of the Lease.

Mr. Truitt notes that the Court has (i) previously rejected the
very arguments now raised by the Debtors, and (ii) expressly
held that Section 502(b)(6) does not apply to damages resulting
from a sale of real property.

Mr. Truitt reminds Judge Drain that the Bankruptcy Court for the
Southern District of New York has recognized in Leslie Fay Cos.,
Inc. v. Corporate Property Associates 3 (In re The Leslie Fay
Cos., Inc.), 166 B.R. 802 (Bankr. S.D.N.Y. 994), that "it is
simply impossible to draw the inference which Leslie Fay says
flows from the facts which it has pleaded, that the fair market
value of the Premises is nothing more than the discounted rental
stream."

Rather, Mr. Truitt points out, the damages caused by West Loop's
payment of a purchase price in excess of the Property's actual
value is not simply lost cash flow, but is based on the higher
capitalization rate that would have been applied by West Loop in
October 2005 to calculate its purchase price, had it not been
misled about RGL's solvency and financial condition.

Mr. Truitt insists that the Section 502(b)(6) cap simply does
not apply to West Loop's fraud-based claims, and, thus the
Debtors' request should be denied.

                      About Refco Inc.

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

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

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

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

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

Refco Commodity Management, Inc., formerly known as CIS
Investments, Inc., a debtor-affiliate of Refco Inc., filed for
chapter 11 protection on Oct. 16, 2006 (Bankr. S.D.N.Y. Case No.
06-12436).  (Refco Bankruptcy News, Issue No. 54; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or       
215/945-7000)

                        Plan Update

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

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

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


TONINAS LTD: Shareholders to Gather for Final Meeting on Jan. 21
----------------------------------------------------------------
Toninas Ltd.'s final general meeting will be at 10:00 a.m. on
Jan. 21, 2007, or as soon as possible, at the liquidator's place
of business.

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

The liquidator can be reached at:

         James A.F. Watlington
         Alexanders 73
         Front Street, 4th Floor
         Hamilton, Bermuda


VILLAIR LTD: Last Day for Proofs of Claim Filing Is on Feb. 12
--------------------------------------------------------------
Villair Ltd.'s creditors are given until Feb. 12, 2007, to prove
their claims to Alain Audrey, the company's liquidator, or be
excluded from receiving any distribution or payment.

In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.

Villair Ltd.'s shareholders agreed on Jan. 3, 2007, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.

The liquidator can be reached at:

         Alain Audrey
         c/o Thistle House
         4 Burnaby Street
         Hamilton, Bermuda




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


* BOLIVIA: State Mining Firm May Invest US$500 Million in Sector
----------------------------------------------------------------
Bolivian mining minister Guillermo Dalence told Business News
Americas that Comibol, the nation's state mining corporation,
expects to settle investments of US$500 million in 2007 with
money from loans or by establishing joint ventures to reactivate
the sector.

Minister Dalence told Agencia Boliviana de Informacion that the
lack of interest of previous administrations has hindered the
deployment of a mining policy that works in favor of Bolivia.  
The country had become used to receiving investments of between
US$10 million and US$15 million for exploration alone, and until
a few years ago was the world's largest tin producer.

Minister Dalence told BNamericas that the mining ministry has
started to implement structural measures related to:

          -- tax issues,
          -- return of mining concessions to state hands, and
          -- nationalization of mining interests, respecting
             foreign investment and legal security.

Minister Dalence commented to BNamericas, "It is doing a
meticulous job because the measures that are being adopted in
mining have to be technically impeccable as well as economically
and financially responsible.  We are obligated to do an arduous
job because mining has been the victim of systematic destruction
for a long time.  We agree with the president of the republic
[Evo Morales] when he says that this should be a year for
mining."

Agencia Boliviana relates that Bolivia is far behind in terms of
exploration.  The latest studies indicate that 80% of its
territory has never been explored.

Social groups, universities and Comibol are analyzing offers for
the sector, BNamericas notes.  The proposals will be addressed
during a mining summit in Oruro slated for the end of this
month.

The Bolivian government said in December that it will increase
the complementary mining tax and incorporate several minerals
into the system that are not being taxed, 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




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


ACTUANT CORP: Earns US$25.1 Mil. in First Quarter Ended Nov. 30
---------------------------------------------------------------
Actuant Corp. reported first quarter fiscal 2007 net earnings of
US$25.1 million, which compares favorably with net earnings of
US$21.3 million for the first quarter of fiscal 2006.

First quarter sales increased to US$343 million from US$284
million in the prior year, driven by strong base business growth
and approximately US$25 million of sales from acquired
businesses.  Excluding foreign currency exchange rate changes
and sales from acquired businesses, first quarter fiscal 2007
sales increased approximately 9% from the comparable prior year
period.  This increase was driven by growth in all four
reportable segments, including strong growth in the Industrial
and Actuation Systems segments.

At Nov. 30, 2006, the company's balance sheet showed US$1.2
billion in total assets, US$845.8 million in total liabilities,
and US$397 million in total stockholders' equity.

Net debt was US$455 million, unchanged from the beginning of the
quarter.  Consistent with prior years, Actuant's first quarter
cash flow was impacted by seasonal trends including working
capital growth and employee incentive compensation payments for
the prior year.

Robert C. Arzbaecher, president and chief executive officer of
Actuant, commented, "Actuant is off to a solid start in fiscal
2007 with 9% core sales growth, which was slightly ahead of our
expectations.  Additionally, first quarter EPS increased
approximately 16% from last year, driven by higher sales and the
benefit of prior year acquisitions."

Mr. Arzbaecher continued, "We were especially pleased with the
performance of our Industrial segment, which generated strong
increases in both core sales and profit margins.  Our overall
profit margins were down year-over-year as a result of
unfavorable sales mix and lower Actuation System and Electrical
segment profitability.  Our previously announced European
Electrical restructuring activities continue on plan, although
there was limited financial impact this quarter."

He added, "We are also pleased with our acquisition progress,
both in integrating previously announced acquisitions and in
identifying new acquisition opportunities.  We've had success in
supplementing our core revenue growth with acquisitions, and
this combination has helped Actuant double its sales over the
last three years."

Full-text copies of the company's consolidated financial
statements for the quarter ended Nov. 30, 2006, are available
for free at http://researcharchives.com/t/s?1856

Headquartered in Butler, Wisconsin, Actuant Corp. (NYSE: ATU)
-- http://www.actuant.com/-- is a diversified industrial   
company with operations in more than 30 countries, including
Brazil in Latin America.  The Actuant businesses are market
leaders in highly engineered position and motion control systems
and branded hydraulic and electrical tools and supplies.  Since
its creation through a spin-off in 2000, Actuant has grown its
sales from US$482 million to over US$1 billion and its market
capitalization from US$113 million to over US$1.4 billion.  The
company employs a workforce of more than 6,300 worldwide.  

                        *    *    *

As reported in the Troubled Company Reporter-Europe on Oct. 24,
Moody's Investors Service affirmed its Ba2 corporate family
rating for Actuant Corp.


ALERIS INT: Discloses Management Promotions
-------------------------------------------
Aleris International, Inc., disclosed promotions effective
Jan. 9, 2007.

Christopher R. Clegg has been promoted to Executive Vice
President, General Counsel and Secretary.  He has served as the
company's Senior Vice President, General Counsel and Secretary
since December 2004.  Mr. Clegg joined Commonwealth Industries,
Inc. in June 2004 as Vice President, General Counsel and
Secretary.  Before joining Commonwealth, he had served as Senior
Vice President, General Counsel and Secretary of Noveon, Inc.
since March 2001.  Mr. Clegg also held several senior legal
positions with the Goodrich Corporation and was a corporate
lawyer in private practice with the law firms of Squire, Sanders
& Dempsey in Cleveland, Ohio and Perkins Coie in Seattle,
Washington.

K. Alan Dick has been promoted to Senior Vice President, Global
Metals Procurement.  Commenting on the promotion, Steven J.
Demetriou, Chairman and CEO of Aleris said, "Since the formation
of Aleris in December 2004, Mr. Dick's leadership of the Metals
Procurement function has led to the development of a much more
effective global metals sourcing strategy which has benefited
Aleris greatly."  Mr. Dick joined Commonwealth Industries, Inc.
in October 1998 as Manager, Metals Purchasing and was a key
leader in the Commonwealth Industries Supply Chain organization.  
Prior to joining Commonwealth, he served as Vice President and
General Manager - Pacific Region for Ideal Metals. He began his
career with Pechiney SA in Canada where he held several
positions including Vice President.

Headquartered in Beachwood, Ohio, a suburb of Cleveland, Aleris
International, Inc. -- http://www.aleris.com/-- manufactures
aluminum rolled products and extrusions, aluminum recycling and
specification alloy production.  The company is also a recycler
of zinc and a leading U.S. manufacturer of zinc metal and value-
added zinc products that include zinc oxide and zinc dust.

On Aug. 1, 2006, the company acquired the aluminum business of
Corus Group plc for a cash purchase price of approximately
US$885.7 million.  The acquisition included Corus Group plc's
aluminum rolling and extrusions business but did not include
Corus's primary aluminum smelters.

Along with company's aluminum recycling operations in Germany,
the United Kingdom, Mexico and Brazil and magnesium recycling
operations in Germany and the Netherlands, with the Corus
Aluminum acquisition, the company now has rolled products and
extrusions operations in Germany, Belgium, Canada and China.  In
addition, the company is in the process of constructing a zinc
recycling facility in China.

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 22, 2006,
Standard & Poor's Ratings Services affirmed its 'B+' loan and
'2' recovery ratings on the senior secured first-lien term loan
of Aleris International Inc., after the report that the company
increased the term loan by US$125 million.


BANCO BRADESCO: Launching First Investment Fund on Market
---------------------------------------------------------
Banco Bradesco told Business News Americas that it is launching
the Bradesco Infra-estrutura, the first investment fund on the
market to focus on firms connected to the infrastructure sector.

According to BNamericas, Bradesco Infra-estrutura will initially
be investing 67% of its assets in shares of firms directly or
indirectly linked to infrastructure.  The rest is reserved for
new investment opportunities that may come up during the year.

BNamericas underscores that Herculano Anibal Alves, Bradesco
Asset Management director of variable income instruments, will
also be responsible for managing the fund.

Mr. Alves told BNamericas, "The country is undergoing a period
which needs investment in the [infrastructure] area for the
economy to grow."

Mr. Alves said that Bradesco Infra-estrutura's resources of BRL3
million are invested in the shares of 11 firms, and the bank
expects to eventually use the fund to invest in up to 30
companies, with funding expected to reach up to BRL300 million
in a year, BNamericas notes.

Future investments may include firms operating in ports,
railways and other sectors as well as those working with
sanitation, energy, metallurgy and capital goods, BNamericas
says, citing Mr. Alves.

Mr. Alves told BNamericas, "We are already investing in ALL,
Arcelor, Lupatech, Santos Brasil, Gerdau, Copel and Copasa.  We
have chosen companies in this wide-reaching sector
[infrastructure] which we believe to be best suited at the
moment, but this may change in the future."

The report says that the bank will decide if a firm fits its
criteria for investment based upon:

          -- its areas of activity,
          -- its share price, and
          -- its opportunities in the short term.

Mr. Alves told BNamericas, "Companies in this sector are already
looking to improve their productivity.  I think they will enjoy
above-average economic growth and this can bring good returns
for shareholders.  There are bottlenecks that demand high levels
of investment and companies that are well positioned will take
advantage of this.  In the future, with the series of company
listings [on the stock exchange] that are taking place, we may
have heavy construction companies in the portfolio."

According to the report, Banco Bradesco's 30,000 high-income
sector prime customers are being offered the chance to invest in
Bradesco Infra-estrutura.  Initial minimum applications will be
of BRL1,000 with subsequent investments of BRL500.

Mr. Alves told BNamericas, "The way in which interest rates are
falling, investors will look to invest their resources in
alternative areas which provide a higher return and banks will
relocate money where there are opportunities to earn."

BNamericas emphasizes that the Bradesco Infra-estutura comes
amidst criticism from the private and financial sectors of the
Brazilian government's postponing the concessions process for
seven federal highways.

"There is some risk [in the infrastructure sector] because it
depends upon regulation, but we hope the government will not
make great changes and [regulation] continues more or less as it
has been," Mr. Alves told BNamericas.

Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. Banco --
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.

                        *    *    *

Fitch Ratings upgraded Banco Bradesco S.A.'s short-term local
currency rating to 'F3' from 'B.'

Fitch has also taken these rating actions on Banco Bradesco:

   -- Foreign Currency Issuer Default Rating upgraded to
      'BB+' from 'BB', Outlook remains Stable;

   -- Short-term Foreign Currency rating affirmed at 'B';

   -- Local Currency Issuer Default Rating affirmed at 'BBB-',
      Outlook Stable;

   -- Individual rating affirmed at 'B/C';

   -- Support rating affirmed at '4';

   -- National Long-term affirmed at 'AA+(bra)', Outlook remains
      Stable; and

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

Moody's Investors Service upgraded these ratings of Banco
Bradesco SA:

   -- long-term foreign currency deposits to Ba3 from B1; and

   -- long- and short-term global local currency deposit
      ratings to A1/Prime fom A3/Prime-2.

Moody's said the ratings outlook is stable.


BANCO BRADESCO: Unit Inks Insurance Contract with Chevron
---------------------------------------------------------
Bradesco Auto/RE, an insurance division of Banco Bradesco, said
in a statement that it has signed an accord with Chevron to
provide US$1.4 billion in coverage for the construction and
installation of a 100,000 barrel-a-day production, storage and
offloading vessel in the deepwater Frade field.

Frade is in the Campos basin at water depths of up to 1,200
meters.  It is located about 121 kilometers from the Rio de
Janeiro coast.

Business News Americas relates that Chevron's Brazilian unit
operates that Frade field with a 51.74% stake.  Petroleo
Brasileiro owns 30% of the field.  FJPL, a Japanese consortium,
holds 18.26% of the field.

According to BNamericas, Frade will start producing in early
2009 after total investment of US$2.4 billion.

Under the terms of the contract, Bradesco Auto/RE could not
reveal the amount Chevron would pay in yearly premiums,
BNamericas says, citing the unit's commercial director Luiz
Carlos Nabuco.

Published reports say that the maximum claim amount is US$950
million and an adjacent civil liability policy has a maximum
claim amount of US$50 million.

Meanwhile, Mr. Nabuco told BNamericas that the contract with
Chevron helped the unit move up to first place in the special
risks segment in terms of premiums.  The insurer registered
BRL88.0 million in special risk premiums in January to November
2006, enough for a 46.4% market share.

Unibanco AIG had occupied the top spot through October 2006,
BNamericas states.  

                   About Bradesco Auto/RE

Bradesco Auto/RE is a division of Banco Bradesco, which held
BRL243 billion in total assets at the end of the third quarter
of 2006, including insurance, private pension and savings bonds
operations.  

                   About Banco Bradesco

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

                        *    *    *

Fitch Ratings upgraded Banco Bradesco SA's short-term local
currency rating to 'F3' from 'B.'

Fitch has earlier taken these rating actions on Banco Bradesco:

   -- Foreign Currency Issuer Default Rating upgraded to
      'BB+' from 'BB', Outlook remains Stable;

   -- Short-term Foreign Currency rating affirmed at 'B';

   -- Local Currency Issuer Default Rating affirmed at 'BBB-',
      Outlook Stable;

   -- Individual rating affirmed at 'B/C';

   -- Support rating affirmed at '4';

   -- National Long-term affirmed at 'AA+(bra)', Outlook remains
      Stable; and

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

Moody's Investors Service upgraded these ratings of Banco
Bradesco SA:

   -- long-term foreign currency deposits to Ba3 from B1; and

   -- long- and short-term global local currency deposit
      ratings to A1/Prime fom A3/Prime-2.

Moody's said the ratings outlook is stable.


BANCO CRUZEIRO: Central Bank Okays Firm's Capital Increase
----------------------------------------------------------
The Brazilian central bank has authorized Banco Cruzeiro do Sul
to increase its capital to BRL183 million from BRL145 million,
Agencia Estador reports.

Agencia Estado relates that the central bank has also allowed
Banco Comercial Uruguai to BRL63.1 million from BRL51.5 million,
Agencia Estado relates.

Banco Cruzeiro do Sul is headquartered in Sao Paulo, Brazil and
had BRL2.6 billion (US$880 million) in total assets and BRL162.6
million (US$84.6 million) in shareholders' equity as of June
2006.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Sept. 4, 2006, Moody's Investors Service upgraded Banco Cruzeiro
do Sul SA's long-term foreign currency deposits to Ba3 from Ba1.
Moody's said the rating outlook is stable.


BANCO DO BRASIL: Pushing Mobile Banking in Brazil
-------------------------------------------------
"Banco do Brasil's online banking service is currently used by
30% of customers and we expect mobile banking to overtake it in
six years (by 2012) as Brazil has great potential with around
100 million mobile phone users," Banco do Brasil executive
manager of electronic banking Raul Moreira told Business News
Americas.

Mr. Moreira told BNamericas that the seven-year mobile banking
project is divided into three parts:

          -- general banking,

          -- customer relationships like sending SMS to clients,
             and

          -- mobile payments.

Banco do Brasil aims to reach 1 million subscribers for its
mobile banking services this year in Brazil and Japan,
BNamericas notes, citing Mr. Moreira.

According to BNamericas, the m-banking project began last year
and now has 340,000 users in Brazil, plus 300,000 in Japan.

Mr. Moreira said that uptake has been faster in Japan, where
there is a culture of mobile banking and using phones to make
payments, the report says.

Mr. Moreira told BNamericas, "We aim to encourage the culture of
mobile banking in Brazil... We will launch a marketing campaign
this year."

BNamericas emphasizes that with 80% of mobile phone users in
Brazil being prepaid, Banco do Brasil is also targeting these
users.

Mr. Moreira told BNamericas, "Twenty-three percent of our 2,000
transactions a month [via m-banking] come from prepaid phone
users."

Banco do Brasil will also forge partnerships with firms to
establish the use of mobile phones as credit cards, BNamericas
says, citing Mr. Moreira.  Banco do Brasil has accords with all
mobile operators in Brazil.

Banco do Brasil is Brazil's federal bank and is the largest in
Latin America with some 20 million clients and over 7,000 points
of sale (3,200 branches) in Brazil, and 34 offices and
partnerships in 26 other countries.  In addition to its
traditional retail banking services, Banco do Brasil underwrites
and sells bonds, conducts asset trading, offers investors
portfolio management services, conducts financial securities
advising, and provides market analysis and research.

                        *    *    *

As reported on Mar. 3, 2006, Standard & Poor's Ratings Services
raised its foreign currency counter party credit ratings on
Banco do Brasil SA to 'BB' from 'BB-'.  The foreign and local
currency ratings of this bank are now equalized at 'BB'.  S&P
said the outlook is stable.


BENQ CORP: Sentex Sensing Presents Business Model to Creditors
--------------------------------------------------------------
Henrik Rubinstein, president of Sentex Sensing Technologies
Inc., presented the company's position to creditors of BenQ
Mobile GmbH & Co. in relation to its offer to acquire the
bankrupt German unit of Taiwan-based BenQ Corp.

Mr. Henrik made the presentation at a creditors' meeting held by
Martin Prager, BenQ Mobile's insolvency administrator, under
German Insolvency Law on Jan. 9.  

The previous Siemens Mobile Division filed insolvency and is
under administration in Munich, Germany.  Sentex stated their
interest was based on the strong technology and products of the
previous Siemens R&D as well the market access in Europe which
turned out almost 25 million high-end mobile phones in the last
business year.

Mr. Rubinstein explained in detail its financial model, which
showed its fair value as well as the incentives for the
employees with strong growth in the NewCo -- SENSe Mobile GmbH.  
He provided the description of the mobile prototypes, which
showed clearly what the SENSe Mobile Division could create
versus the competition.

He explained the positive link between U.S. and German high tech
ventures.

As a result of the meeting, the Insolvency team informed Sentex
of the liquidation value of the assets and informed Sentex to
prepare new financial information that demonstrates how to pay
the liquidation value, and its acceptance of it.  They started
negotiations on the earn-out model.

Sentex has received a written statement of Nord Rhein Westfahlen
again on a country endorsement for working capital of EUR25
million, which was forwarded to the Bank for approval.

Sentex is in serious discussions with several Financial
Institutions for the strategic financing for the deal to
succeed.

The Administration team for BenQ Mobile was very helpful in the
due diligence process and created with Sentex a strong business
model based on the previous US$2 billion revenue from BenQ
Mobile GmbH & Co. OHG.

                    About Sentex Sensing

Sentex Sensing Technologies, Inc. http://www.sentextech.com/--  
provides fingerprint, facial and voice biometric technologies,
as well as systems, and critical system components that empower
the identification of individuals in large-scale ID and ID
management programs.

                        About BenQ

Headquartered in Taiwan, Republic of China, BenQ Corp.
Inc. -- http://www.benq.com/-- manufactures, develops and sells  
computer peripherals and telecommunication products.  It is also
a major provider of 3G handset, 3G handset, Camera phones, and
other products.

BenQ Mobile GmbH & Co., the company's wholly owned subsidiary,
operates from Munich, Germany.  BenQ Mobile filed for insolvency
in Germany on Sept. 29.  The collapse follows a year after
Siemens sold the company to Taiwanese technology group BenQ.
BenQ Mobile has lost market share against giant competitors.  It
has operations in Brazil.

                        *     *     *

As reported in the TCR-AP on Oct. 31, 2006, Taiwan Ratings Corp.
affirmed its twBB+/twB corporate credit ratings and twBB+
unsecured corporate bond issue rating on BenQ Corp.  The outlook
on the long-term rating is negative.  At the same time, Taiwan
Ratings removed all ratings from Credit Watch with negative
implications, where they were placed on March 14, 2006, and
withdrew all the ratings upon the company's request.


COMPANHIA ENERGETICA: Moody's Rates US$250 Mil. Notes at Ba3
------------------------------------------------------------
Moody's Investors Service assigned a Ba3 foreign currency rating
to Companhia Energetica de Sao Paulo aka CESP's proposed
unsubordinated unsecured Real-denominated IPCA linked notes due
in 2015 in the amount of approximately US$250 million in Real-
equivalent.  The 2015 notes shall be issued under the US$975
million Medium Term Notes Program rated Ba3 by Moody's.  Moody's
notes that, although the notes will be denominated in Brazilian
Real, all related payments shall be made in US-Dollars.  The
ratings outlook is positive.

The Ba3 foreign currency rating of the MTN Program reflects the
Ba3 global local currency corporate family rating of CESP, and
is not constrained by Brazil's current Ba1 sovereign ceiling.
The net proceeds from the issuance will be used to prepay
outstanding debt due 2008 and 2011 issued under the MTN Program.

With over 95% of its voting shares directly and indirectly owned
by the Government of the State of Sao Paulo, CESP is considered
a government-related issuer in accordance with Moody's rating
methodology entitled "The Application of Joint Default Analysis
to Government-Related Issuers."  Moody's methodology for
government-related issuers systematically incorporates into the
rating the company's stand-alone credit risk profile or Baseline
Credit Assessment as well as the likelihood that a government
would provide extraordinary support to that company's debt
obligations.

The ratings of CESP result from the application of a joint-
default analysis of the company's Baseline Credit assessment,
the Ba2 rating of the State of Sao Paulo, and Moody's view of
medium dependence, and medium support probability of
extraordinary support from the controlling shareholder.

The Baseline Credit Assessment of a government-related issuer is
expressed on a 1-21 scale or as a range within the 1-21 scale,
according to the issuer's preference, where 1 represents the
equivalent risk of an Aaa, 2 a Aa1, 3 a Aa2 and so forth.  
CESP's ratings incorporate a Baseline Credit Assessment that is
currently in the 14-16 range.  

The positive outlook reflects Moody's expectation that,
following the conclusion of its debt restructuring, CESP will
focus on the continuous deleveraging of its balance-sheet in the
coming years, supported by its strong cash flows that should
benefit from legal restrictions to distribute dividends due to
significant accumulated losses, and low levels of capital
expenditures which should be limited to the ongoing maintenance
of its plants.

Headquartered in Sao Paulo, Brazil, CESP -- Companhia Energetica
de Sao Paulo is the country's third largest power generator,
majority owned by the State of Sao Paulo.  CESP operates 6
hydroelectric plants with total installed capacity of 7,456 MW
and reported net revenues of BRL1,983 million in the last twelve
months through Sept. 30, 2006.


COMPANHIA SIDERURGICA: Completing Slab Project Study This Month
---------------------------------------------------------------
Companhia Siderurgica Nacional said in a report that it expects
the feasibility study for a 4.5-million-ton-per-year slab
project in Rio de Janeiro to be completed in January.

Business News Americas relates that Companhia Siderurgica had
aimed for the study to be completed by December 2006.

According to BNamericas, Companhia Siderurgica signed a
partnership with China's steelmaker Baosteel for a feasibility
and basic engineering study for the project.  Under the
agreemnt, Baosteel could have a 25% stake in the project.

The environmental permit for the slab unit is expected by April,
BNamericas says, citing Companhia Siderurgica.

Companhia Siderurgica said in a report, "Expanding slab
production capacity in Brazil should pave the way for the
company's international plans."

Companhia Siderurgica is planning another slab project in Rio de
Janeiro or Minas Gerais, BNamericas states.

Headquartered Sao Paolo, Brazil, Companhia Siderurgica Nacional
S.A. -- http://www.csn.com.br/-- produces, sells, exports and
distributes steel products, like hot-dip galvanized sheets,
tin mill products and tinplate.  The company also runs its own
iron ore, manganese, limestone and dolomite mines and has
strategic investments in railroad companies and power supply
projects.  The group also operates in Portugal and the U.S.

                        *    *    *

Standard & Poor's Ratings Services affirmed on Aug. 4, 2006, its
'BB' long-term corporate credit rating on Brazil-based steel
maker Companhia Siderurgica Nacional aka CSN after the
announcement of its association with U.S.-based steel maker
Wheeling-Pittsburgh Corp. in the U.S.  S&P said the outlook is
stable.

Fitch Ratings viewed the proposed merger of Companhia
Siderurgica Nacional's or CSN North American operations with
those of Wheeling-Pittsburgh Corporation or WPSC to be neutral
to CSN's credit quality.  Fitch's ratings of CSN include:

  -- Foreign currency Issuer Default Rating: 'BB+';
  -- Local currency IDR: 'BBB-';
  -- National scale rating: 'AA (bra)';
  -- Senior unsecured notes 'BB+'; and
  -- Brazilian Real denominated debentures: 'AA (bra)'.


DURA AUTO: Discloses David L. Harbert's Terms of Employment
-----------------------------------------------------------
Dura Automotive Systems Inc. has informed the U.S. Securities
and Exchange Commission that it has entered into an employment
agreement with David L. Harbert as its interim vice president
and chief financial officer, which agreement is subject to the
U.S. Bankruptcy Court for the District of Delaware's approval.  

The terms of the agreement are:

   (a) The Employment Agreement will be deemed effective as of
       Dec. 9, 2006;

   (b) As chief financial officer, Mr. Harbert will:

         * perform all duties as are consistent therewith as the
           Chief Executive Officer or the Board of Directors
           will designate;

         * report directly to Dura's chief executive officer;

         * devote his full time and attention and expend his
           best efforts, energies and skills on behalf of Dura
           in the performance of his duties and
           responsibilities;

   (c) Dura will pay Mr. Harbert US$43,200 a month payable in
       accordance with the Company's normal payroll periods and
       procedures, but no less frequently than on a semi-monthly
       basis.  Dura, in its sole discretion, may increase
       Mr. Harbert's salary.

       Dura will pay Mr. Harbert an early termination fee should
       it elect to terminate the Employment Agreement within 90
       days of the Beginning Date.  Dura will pay Mr. Harbert in
       an amount such that the total of Salary and Early
       Termination Fee paid is equal to US$2,250 per day worked
       by Mr. Harbert from the Beginning Date to the date of
       termination of the agreement;

   (d) During the course of Mr. Harbert's employment, he will
       remain a partner at Tatum.  Mr. Harbert will share with
       Tatum a portion of his economic interest in any stock
       options or equity bonus that Dura may, in its discretion,
       grant him.  He may also share with Tatum a portion of any
       cash bonus and severance the Company may, in its
       discretion, pay him, to the extent specified in that
       certain Interim Engagement Resources Agreement between
       Dura and Tatum.

       Dura will promptly reimburse Mr. Harbert directly for
       reasonable travel and out-of-pocket business expenses in
       accordance with Dura's expense reimbursement policies and
       procedures and a per diem of US$50.00;

   (e) Mr. Harbert will be eligible for:

         * any 401(k) plan offered to Dura's senior management
           in accordance with the terms and conditions of that
           401(k) plan;

         * holidays consistent with Dura's policy as it applies
           to senior management; and

         * vacation accrued at 1.67 days per month.

       Mr. Harbert be exempt from any waiting periods required
       for eligibility under any benefit plan of Dura, other
       than a qualified retirement plan or if that exemption
       would otherwise cause impermissible discrimination under
       the income tax laws applicable to employee benefit plans;

   (f) Mr. Harbert must receive written evidence that Dura
       maintains directors' and officers' insurance to cover him
       in an amount comparable to that provided to senior
       management of the Company at no additional cost.  Dura
       will maintain that insurance at all times while the
       Employment Agreement remains in effect.

       Furthermore, Dura will maintain that insurance coverage
       with respect to occurrences arising during the term of
       the Employment Agreement for at least three years after
       the termination or expiration of the Employment
       Agreement, or will purchase a directors' and officers'
       extended reporting period, or "tail," policy to cover Mr.
       Harbert.

       Dura has also agreed to indemnify Mr. Harbert for any
       claim arising from, related to or in connection with the
       his performance of the services.

   (g) Dura or Mr. Harbert may terminate the Employment
       Agreement for any reason on at least 30 days' prior
       written notice.  Mr. Harbert will continue to render
       services and to be paid during that 30-day period,
       regardless of who give that notice;

   (h) Mr. Harbert may terminate the agreement immediately if
       Dura has not remained current in its obligations under
       the Employment Agreement or the Tatum Agreement, or if
       Dura engages in, or asks him to engage in or to ignore,
       any illegal or unethical conduct;

   (i) Dura may terminate the Employment Agreement immediately
       for cause; and

   (j) Either party may terminate the agreement in the event the
       Court declines to approve the Employment Agreement on or
       before Jan. 23, 2007.

           Service Agreement with Mr. Harbert's Firm

Dura entered into a related services agreement dated Dec. 20,
2006, with Tatum for the provision of resources and support in
connection with Mr. Harbert's employment.

The Tatum Agreement is subject to Court approval and will be
deemed effective as of Dec. 9, 2006.

Pursuant to the Tatum Agreement, Dura will pay directly to Tatum
a fee equal to 25% of Mr. Harbert's salary as partial
compensation for resources provided.  In the event Mr. Harbert
will be paid a bonus, Dura will pay Tatum, whether cash or
equity, 25% of the total bonus paid by Dura during the term of
the Tatum Agreement.

Dura will have the opportunity to make Mr. Harbert a full-time
permanent member of Dura management at any time during the term
of the Tatum Agreement entering into another form of agreement.

The Tatum Agreement will terminate immediately upon the earlier
of:

   (a) the effective date of the Termination;
   (b) expiration of Mr. Harbert's employment with Dura; or
   (c) Mr. Harbert ceasing to be a partner of Tatum.

During the 12-month period following termination or expiration
of the Tatum Agreement, other than in connection with another
agreement with the firm, Dura will not employ Mr. Harbert or
engage him as an independent contractor, to render services of
substantially the same nature as those for which Tatum is making
him available pursuant to the Agreement.  The parties agree that
a breach by Dura of this provision would result in the loss to
Tatum of Mr. Harbert's valuable expertise and revenue potential.  
Thus, in the event of breach, Tatum will be entitled to receive
liquidated damages in an amount equal to 45% of Mr. Harbert's
Annualized Compensation.

In the event a court or arbitrator, as applicable, determines
that liquidated damages are not appropriate for the breach,
Tatum will have the right to seek actual damages.  The amount
will be due and payable to Tatum upon written demand to Dura.

The Tatum Agreement defines "annualized compensation" as
Mr. Harbert's most recent annual salary and the maximum amount
of any bonus for which he was eligible with respect to the then
current bonus year.

Also, pursuant to the Tatum Agreement, Dura will provide Tatum
or Mr. Harbert written evidence that it maintains directors' and
officers' insurance covering the Partner as it covers similarly
situated executive employees of the Company.

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. 9;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


DURA AUTOMOTIVE: Panel Taps Young Conaway as Bankr. Co-Counsel
--------------------------------------------------------------
The Official Committee of Unsecured Creditors in DURA Automotive
Systems Inc. and its debtor affiliates' Chapter 11 cases seek
authority from the U.S. Bankruptcy Court for the District of
Delaware to retain Young Conaway Stargatt & Taylor, LLP as
bankruptcy co-counsel, nunc pro tunc to Nov. 14, 2006.

Committee Chairperson Nicholas W. Walsh relates that Young
Conaway will, among others:

   (a) assist and advise the Committee in its consultation with
       the Debtors and the U.S. Trustee relative to the
       administration of the Debtors' Chapter 11 cases;

   (b) review, analyze and respond to pleadings filed with the
       Court by the Debtors and to participate in the pleading
       hearings;

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

   (d) assist the Committee in the review, analysis, and
       negotiation of any plan of reorganization and its
       disclosure statement, and any asset acquisition proposal
       that may be filed;

   (e) take all necessary action to protect the rights and
       interests of the Committee, including, but not limited
       to, possible prosecution of actions on its behalf; if
       appropriate, negotiations concerning all litigation in
       which the Debtors are involved; and if appropriate,
       review and analysis of claims filed against the Debtors'
       estate;

   (f) represent the Committee in connection with the exercise
       of its powers and duties under the Bankruptcy Code and in
       connection with the Debtors' Chapter 11 cases;

   (g) generally prepare on behalf of the Committee all
       necessary motions, applications, answers, orders, reports
       and papers in support of positions taken by the
       Committee;

   (h) assist the Committee in the review, analysis, and
       negotiation of any financing arrangements; and

   (i) perform all other necessary legal services in connection
       with the Debtors' Chapter 11 cases.

Young Conaway will bill:

           Professional                        Hourly Rate
           ------------                        -----------
           M. Blake Cleary                        US$440
           Edmon L. Morton                        US$380
           Erin Edwards                           US$270
           Kim Beck (paralegal)                   US$155

Mr. Cleary, a partner at Young Conaway, discloses that the firm
may have in the past represented, may currently represent, and
will likely in the future represent parties-in-interest to the
Debtors' Chapter 11 cases.  Mr. Cleary assures the Court that no
past or current representations are material or related to the
Debtors' Chapter 11 cases.  The parties are:

   -- certain Secured lenders represented by the firm include
      Bank of America, N.A.; Deutsche; Silver Point Capital; and
      Wachovia Bank, National Association;

   -- Contender 2 Limited, a significant equity investor and
      shareholder;

   -- the Debtors' Indenture Trustees;

   -- significant bondholders, including Bank of America;
      Deutsche; Jefferies & Company, Inc.; Lehman Brothers Inc;
      and Wachovia Bank; and

   -- Lear Corporation, a litigant.

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

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

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


DURA AUTOMOTIVE: US Trustee Objects to Miller Buckfire Retention
----------------------------------------------------------------
Kelly Beaudin Stapleton, the United States Trustee for Region 3,
objects to DURA Automotive Systems, Inc. and its debtor
affiliates' application to employ Miller Buckfire & Co., LLC, to
the extent the firm is seeking approval for its request to apply
to the U.S. Bankruptcy Court for the District of Delaware for
its compensation pursuant to the standard set forth under
Section 328(a) of the Bankruptcy Code.

William K. Harrington, Esq., trial attorney, notes that the
Application provides that the U.S. Trustee can only object to
the fees of Miller Buckfire pursuant to the standards set forth
in Section 328.  In effect, according to Mr. Buckfire, the
Debtors are seeking to have the Court approve not only the
firm's retention, but to determine at the time of the retention
that the fees they have agreed to pay to the firm are reasonable
under the standards set forth in Section 328(a).  

The U.S. Trustee asserts that any present determination with
respect to the reasonableness of the fees is premature and
inconsistent with Sections 330 and 331, and merely serves to
limit the Court's later review of the reasonableness of the fees
as contemplated by those sections.

Instead, Mr. Harrington asserts, review and approval by the
Court should be made at an interim or final fee application
hearing, when the benefit of the firm's services and the
reasonableness of the fees can be better evaluated, with all
rights of interested parties fully preserved until then.

Mr. Harrington explains that the issue of the reasonableness of
Miller Buckfire's fees is of particular concern because the fees
requested are substantial and it is impossible at the present
time to determine if the fees are reasonable.  He notes that the
firm will be paid a monthly fee of US$200,000, plus a
Transaction Fee of 1% of the aggregate gross consideration from
a sale of the Debtors' assets or a flat Transaction Fee of
US$7,700,000 if a plan of reorganization is confirmed.  

Mr. Harrington notes, at the present time, it is impossible for
any party to evaluate these fees as no sales have currently been
proposed by the Debtors and no plan of reorganization has been
proposed.

The U.S. Trustee also objects to the Application on these
grounds:

   (i) The liability cap provisions in the Engagement Letter
       protect Miller Buckfire's exposure if indemnification
       does not apply by limiting its damages to the fees it
       actually received.  The U.S. Trustee asserts that these
       provisions are unreasonable and contrary to standard
       practice in the District of Delaware; and

  (ii) the Engagement Letter provides that the firm is providing
       services as an independent contractor and that the firm's
       employment does not create a fiduciary relationship
       between the firm and the Debtors.  The provision is
       inconsistent with Section 327(a) of the Bankruptcy Code,
       the U.S. Trustee says.  A professional employed on behalf
       of a debtor-in-possession under Section 327(a) owes
       fiduciary obligations to the debtor and its creditors to
       act solely in the best interests of the estate.

In addition, given the breadth of the client-relationships
identified by Marc D. Puntus, a managing director at Miller
Buckfire, in his affidavit, the U.S. Trustee wants the firm to
provide clarification as to its ability to take positions
adverse to Debtor's secured and unsecured creditors.

Moreover, The U.S. Trustee is concerned with certain provisions
in the Engagement Letter regarding the expenses for which Miller
Buckfire can be reimbursed.

                 Miller Buckfire Responds

Harold Neu, Esq., at Miller Buckfire, in New York, clarifies
that the firm, like other investment bankers, does not charge
for its services on an hourly basis.  The customary practice of
Miller Buckfire and other investment bankers is to charge fixed
monthly fees plus additional fees that are payable upon the
occurrence of certain transactions or events.  However, Mr. Neu
notes, if there is a Sale of substantially all assets, Miller
Buckfire will receive only the Sale Transaction Fee and not a
Restructuring Transaction Fee.

Miller Buckfire submits that its proposed fees should be
approved pursuant to Section 328(a).  Section 328(a), not
Section 330, is the section that addresses non-hourly fee
arrangements such as Miller Buckfire's.  Mr. Neu notes that
there are numerous recent cases in this District in which Miller
Buckfire's monthly fees and transaction-based fees have been
approved pursuant to Section 328(a).  This engagement should not
be treated differently, he says.

Miller Buckfire also has agreed to other modifications to the
Engagement Letter that address the remaining issues raised by
the U.S. Trustee.  At the U.S. Trustee's behest:

   (i) the limited liability provision in the Engagement Letter
       is eliminated.

  (ii) the proposed order approving the application provides
       modifications to the indemnity provisions and the
       limitation of liability to conform to the orders
       customarily entered in the District of Delaware and in
       other cases involving the firm.

                   About DURA Automotive

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).


ELETROPAULO METROPOLITANA: Sao Paulo Authorities Probing Firm
-------------------------------------------------------------
The Sao Paulo legislative assembly said in its news service that
its investigation commission held a meeting to decide on ways to
probe the privatization of Eletropaulo Metropolitana
Eletricidade de Sao Paulo SA.

Business News Americas relates that state legislators formed the
commission to investigate loans by BNDES to AES Corp. to
purchase Eletropaulo Metropolitana fro the state government.

According to BNamericas, Eletropaulo Metropolitana was sold to
private hands for BRL2 billion in 1998.

BNamericas underscores that the Workers' Party members have
called for the investigation.  They alleged that Eletropaulo
Metropolitana hired former BNDES workers as consultants.

The investigation commission has 90 days to complete the
investigation, BNamericas states.

Eletropaulo distributes power in Brazil's industrial hub of Sao
Paulo city and 23 surrounding towns.  Power consumption in Sao
Paulo state grew 3.8% in 2005 from 2004, according to data from
Sao Paulo state government.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Nov. 8, 2006, Standard & Poor's Ratings Services raised the
ratings on Brazilian electric utility Eletropaulo Metropolitana
Eletricidade de Sao Paulo SA and its BRL474 million senior
unsecured and unsubordinated euro bonds to 'BB-' from 'B+'.  On
the Brazil national scale, the 'brBBB+' corporate credit rating
was raised to 'brA-'.  S&P said the outlook is stable.


VOLKSWAGEN AG: Porsche CEO Wiedeking Calls for Company Changes
--------------------------------------------------------------
Porsche AG CEO Wendelin Wiedeking is seeking for at least one
more board seat at Volkswagen AG and vowed he would push for big
changes at the company to increase its underperforming results,
Joseph B. White writes for the Wall Street Journal.

"I know how to make money.  I will force that we make money in
VW, believe me," Mr. Wiedeking, who already holds two seats on
VW's supervisory board, was quoted by WSJ as saying.  "There
must be a lot of changes in the VW organization."

In response to press speculation, Mr. Wiedeking disclosed he
does not want to take over as Volkswagen's CEO and eliminated a
full merger between Porsche and Volkswagen.  Porsche holds a
27.4% stake in Volkswagen.  

According to WSJ, Porsche will try to take advantage of VW's
measures to reduce the costs it must pay in developing expensive
new technology for its high performance cars.

Headquartered in Wolfsburg, Germany, the Volkswagen Group --
http://www.volkswagen.de/-- is one of the world's leading  
automobile manufacturers and the largest carmaker in Europe.
With 47 production plants in eleven European countries and a
further seven countries in the Americas, like Mexico, Africa,
and Asia.  Volkswagen has more than 343,000 employees producing
over 21,500 vehicles or are involved in vehicle- related
services on every working day.

                        *    *    *

Volkswagen has been carrying out measures to cut costs and raise
profits, which could affect up to 30,000 jobs.  The potential
job cuts represent about a third of the carmaker's workforce and
three times higher than initial estimates made by Chief
Executive Bernd Pischetsrieder and Volkswagen brand head,
Wolfgang Bernhard.

In November last year, Volkswagen maintained its 2005 earnings
guidance amid rumors it may lower targets.  The company predicts
a year-on-year improvement in both operating profit after
special items and profit before tax this year.  Rumors flew that
the company would slash full-year earnings forecast due to
higher restructuring costs.  The company said the impact of its
workforce reduction measures, which will be charged as special
items in the fourth quarter, will be lower than last year's.

The company also admitted there were no significant improvements
in the economic environment in the first nine months of 2005,
and the overall situation in the important automotive markets
remained difficult.  It also expected tougher competition in the
Chinese and U.S. markets, and the rise in fuel prices to
influence consumer confidence.


METSO OYJ: Names Juhani Suvinen as Valmet Automotive President
--------------------------------------------------------------
Juhani Suvinen has been appointed President of Valmet
Automotive, a unit of Metso Oyj, as of Jan. 10, 2007.  

Mr. Suvinen has held the position of Executive Vice President of
Valmet Automotive since 1996.

At the same time, Ilpo Korhonen was appointed Executive Vice
President, and is responsible for the production process.  He
has previously acted as Vice President responsible for the
Porsche project and the production, and before that he acted in
different production and quality related assignments.

Valmet Automotive's current president, Tapio Kuisma, resigns
simultaneously and will become Board Member of Valmet
Automotive.

                   About Valmet Automotive

Headquartered in Uusikaupunki, Finland, Valmet Automotive --
http://www.valmet-automotive.com/-- is a unit of Metso Corp aka  
Metso Oyj.  The company is a brand-independent contract
manufacturer of exclusive specialty cars of superior quality

                         About Metso

Headquartered in Helsinki, Finland, Metso Corporation --
http://www.metso.com/-- serves customers in the pulp and paper
industry, rock and minerals processing, the energy industry and
selected other industries.

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

                        *     *     *

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


PROPEX INC: Moody's Revises Debt Rating Outlook to Negative
-----------------------------------------------------------
Moody's Investors Service changed the outlook on Propex Inc.'s
long-term debt ratings to negative from stable.  The action was
prompted by operating weakness, including declining sales and
profitability resulting from a cyclical slowdown in residential
construction and overall economic activity.  The company is
currently in the process of renegotiating its bank covenants.

The operating weakness was exacerbated by the greater than
expected impact of the backward integration of the large
residential carpet manufacturers, namely Shaw Industries, Inc.
(not rated by Moody's) and Mohawk Industries, Inc. (Baa3 with a
negative outlook) into the carpet backing business. Volumes in
geotextiles as well as other industrial and concrete
applications were also below expectations, as was the case with
other polypropylene converters in recent months.  Moody's
expects that weak performance is likely to continue through 2007
or until residential construction begins to recover.

Although Moody's believes that current ratings appropriately
balance the company's leadership position in its principal
markets with the mature and cyclical nature of many of these
markets, we are at a point in the business cycle which, if
prolonged, presents increased risk for the lenders.  
Notwithstanding the probable covenant breach as of
Dec. 31, 2006, Moody's believes that covenant relief should be
provided by the lender group at levels, which recognize current
weakness in the company's principal end markets.

The B2 Corporate Family Rating and instrument ratings continue
to reflect the company's high leverage, weak interest coverage
and low free cash flow generation relative to debt.  The ratings
also reflect the highly competitive, mature industry that Propex
operates in and the cyclical nature of many of the end markets.  
Residential renovation and construction are particularly
vulnerable to economic downturns, increases in interest rates
and housing-specific market disruptions or corrections.  The
ratings benefit from scale and diversification opportunities
offered by the integration of SI's industrial fabrics,
geotextiles and concrete systems businesses and a shift away
from carpet backing as the source of the majority of the
revenues along with a reduction in customer concentration.  The
ratings recognize the completion of key initiatives to achieve
cost reductions and eliminate duplication.  The ratings also
acknowledge Propex's leadership position in its principal market
segments and historical ability in managing price fluctuations
relating to raw materials.

Moody's affirmed these ratings:

   -- The Ba3 (LGD 3, 30%) rating on the senior secured credit
      facilities consisting of a US$50 million revolver due
      2011, and the original US$260 million term loan due 2012;

   -- The Caa1 (LGD 5, 82%) rating on the US$150 million senior
      unsecured due 2012;

   -- The B2 Corporate Family Rating; and

   -- The B2 Probability of Default Rating;

The ratings outlook was changed to negative from positive.

The Speculative Grade Liquidity Rating is SGL-3. Adequate
liquidity is subject to covenant relief.

Propex Inc., based in Chattanooga, Tennessee is the world's
largest independent producer of primary and secondary carpet
backing and a leading manufacturer and marketer of woven and
nonwoven polypropylene fabrics and fibers used in geosynthetic
applications and a variety of other industrial applications such
as fabric bags/containers, fabric protective coverings and
concrete fiber reinforcement. The company became a stand-alone
company following the acquisition of the BP Fabrics and Fibers
Business of BP p.l.c by The Sterling Group, L.P., Genstar
Capital, L.P., Laminar Direct Capital, L.P., Paribas North
America Inc. and members of management in December 2004.  The
company has manufacturing operations in North America, Europe
and Brazil.  Sales for the last twelve months ending
Sept. 30, 2006, were US$646 million.


PROPEX INC: S&P Cuts Corporate Credit Rating to B- from B+
----------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on Propex
Inc., including its corporate credit rating to 'B-' from 'B+'.  
The outlook is stable.

The downgrade reflects concerns that difficult operating
conditions are likely to forestall Propex's ability to
meaningfully improve its highly leveraged financial profile
during the next couple of years.  The potential for lower-than-
expected residential construction activity and the possibility
for further declines in the domestic housing markets could cause
earnings and cash flow to be weaker than previously expected.

"While Propex's liquidity position is satisfactory and
supportive of credit quality, we believe the current level of
uncertainty in operating trends raises the potential for
financial covenant violations during the next several quarters,"
said Standard & Poor's credit analyst David Bird.  "We expect
that Propex will successfully negotiate relief as necessary, but
ratings will be constrained until the company's operating
performance results in improved measures of credit quality."

The ratings on Propex reflect the company's vulnerable business
position as a niche producer of primary and secondary carpet
backing and geosynthetic and industrial fibers for mature and
competitive end markets, and a highly leveraged financial
profile.

Propex Inc., based in Chattanooga, Tennessee is the world's
largest independent producer of primary and secondary carpet
backing and a leading manufacturer and marketer of woven and
nonwoven polypropylene fabrics and fibers used in geosynthetic
applications and a variety of other industrial applications such
as fabric bags/containers, fabric protective coverings and
concrete fiber reinforcement. The company became a stand-alone
company following the acquisition of the BP Fabrics and Fibers
Business of BP p.l.c by The Sterling Group, L.P., Genstar
Capital, L.P., Laminar Direct Capital, L.P., Paribas North
America Inc. and members of management in December 2004.  The
company has manufacturing operations in North America, Europe
and Brazil.  Sales for the last twelve months ending
Sept. 30, 2006, were US$646 million.


TELE NORTE: Raises Non-Convertible Debenture Issue to BRL250MM
--------------------------------------------------------------
Tele Norte Leste Participacoes said in a filing with the Bovespa
stock exchange that it has increased the value of its proposed
non-convertible debenture issue to BRL250 million from BRL200
million.

Shareholders would vote on a BRL200-million non-convertible
debenture issue during a meeting slated for Jan. 24, Tele Norte
told Business News Americas.

BNamericas relates that with the increased value of the proposed
debenture, the Rio de Janeiro meeting has been delayed to
Jan. 26.

Tele Norte was one of the firms to receive large scale funding
from BNDES last year.  BNDES granted BRL2.4 billion to Tele
Norte as part of the operator's plans to modernize network
infrastructure, information technology, and fixed line and
mobile services, BNamericas states.

Headquartered in Rio de Janeiro, Brazil, Tele Norte Leste
Participacoes SA -- http://www.telemar.com.br-- is a provider
of fixed-line telecommunications services in South America.  The
company markets its services under its Telemar brand name.  Tele
Norte's subsidiaries include:

          -- Telemar Norte Leste SA,
          -- TNL PCS SA,
          -- Telemar Internet Ltda., and
          -- Companhia AIX Participacoes SA.

                        *    *    *

As reported on Aug. 21, 2006, Fitch Ratings upgraded Tele Norte
Leste Participacoes SA's foreign currency issuer default rating
to 'BB+' from 'BB'.




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


ADVANTAGE ADVISERS: Final Shareholders Meeting Is on Jan. 17
------------------------------------------------------------
Advantage Advisers Sawgrass International Ltd.'s final
shareholders meeting will be at 10:00 a.m. on Jan. 17, 2007, at:
          
          FCM LTD.
          P.O. Box 1982
          Grand Cayman
          KY1-1104 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:

          Raymond E. Whittaker
          FCM LTD.
          P.O. Box 1982, Grand Cayman
          KY1-1104 Cayman Islands      
          Tel: 345-946-5125
          Fax: 345-946-5126


CAPITAL Z: Deadline for Proofs of Claim Filing Is on Jan. 18
------------------------------------------------------------
Capital Z Lancshire Gp, Ltd.'s creditors are required to submit
proofs of claim by Jan. 18, 2007, to the company's liquidators:

          Robert Spass
          Bradley Cooper
          P.O Box 265, George Town
          Grand Cayman KY1-9001, Cayman Islands

Creditors who are not able to comply with the Jan. 18 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Capital Z's shareholders agreed on Dec. 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:

          Nick Robinson
          P.O Box 265, George Town
          Grand Cayman KY1-9001, Cayman Islands
          Tel: 345 914 4216
          Fax: 345 814 8216


BARRAMUNDI FUND: Deadline for Proofs of Claim Filing Is Jan. 24
---------------------------------------------------------------
Barramundi Fund's creditors are required to submit proofs of
claim by Jan. 24, 2007, to the company's liquidator:

          Simon Atkinson
          Ark Mori Building
          22nd Floor, P.O. Box 578
          1 - 12 - 32 Akusaka, Minato-ku
          Tokyo 107-6022, Japan

Creditors who are not able to comply with the Jan. 22 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Barramudi Fund's shareholders agreed on Nov. 24, 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:

          Sophie Ann Gray
          c/o Ogier, Queensgate House
          South Church Street, P.O. Box 1234
          Grand Cayman, Cayman Islands
          Tel: (345) 949 9876
          Fax: (345) 949 1986


DIA RAILROAD: Proofs of Claim Filing Deadline Is on Jan. 18
-----------------------------------------------------------
DIA Railrod Leasing Ltd.'s creditors are required to submit
proofs of claim by Jan. 18, 2007, to the company's liquidators:

          Tatano Yuji
          Yasuhisa Tsuruhashi

Creditors who are not able to comply with the Jan. 18 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

DIA Railroad's shareholders agreed on Dec. 14, 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:

          Janeen Aljadir
          Caledonian Bank & Trust Limited
          Caledonian House, 69 Dr. Roy's Drive
          P.O. Box 1043, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 949-4943
          Fax: (345) 814-4859


EQUITABLE PCI: Proofs of Claim Filing Deadline Is on Jan. 22
------------------------------------------------------------
Equitable PCI Bank Cayman Ltd.'s creditors are required to
submit proofs of claim by Jan. 22, 2007, to the company's
liquidators:

          Sergio LL. Naranjilla
          Btenvenido M. Juat, Jr.
          c/o PO Box 501, George Town
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Jan. 22 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Equitable PCI's shareholders agreed on Nov. 24, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


EUROPEAN PSYCHIC: Sets Final Shareholders Meeting on Jan. 18
------------------------------------------------------------
European Psychic Agency Ltd.'s final shareholders meeting will
be at 10:00 a.m. on Jan. 18, 2007, at:
          
          Close Brothers Ltd.
          4th Floor Harbour Place, 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:

          Jeff Arkley
          Attn: Neil Gray
          Fourth Floor, Harbour Place
          P.O. Box 1034, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 949 8455
          Fax: (345) 949 8499


EXIS HOLDINGS: Shareholders to Convene for Jan. 18 Final Meeting
----------------------------------------------------------------
Exis Holdings Ltd.'s final shareholders meeting will be at 10:00
a.m. on Jan. 18, 2007, at:
          
          Close Brothers Ltd.
          4th Floor Harbour Place, 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:

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


HMTF POULTRY: Calls Shareholders for Final Meeting on Jan. 18
-------------------------------------------------------------
HMTF Poultry Holdings Ltd.'s final shareholders meeting will be
at 10:00 a.m. on Jan. 18, 2007, at:
          
          Close Brothers Ltd.
          4th Floor Harbour Place, 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:

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


IRP SECOND: Shareholders to Gather for Final Meeting on Jan. 23
---------------------------------------------------------------
IRP Second Funding Co.'s final shareholders meeting will be on
Jan. 23, 2007, at:
          
          Caledonian House
          69 Dr. Roy's Drive, 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:

           David S. Walker
           Caledonian Bank & Trust Limited
           Caledonian House
           P.O. Box 1043, George Town
           Grand Cayman, Cayman Islands      


KINGFISHER LTD: Final Shareholders Meeting Is on Jan. 17
--------------------------------------------------------
Kingfisher Ltd.'s final shareholders meeting will be at 9:00
a.m. on Jan. 17, 2007, at:
          
          FCM LTD.
          P.O. Box 1982 Grand Cayman
          KY1-1104 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:

          Raymond Whittaker
          FCM LTD.
          PO Box 1982, Grand Cayman
          KY1-1104 Cayman Islands
          Tel: 345-946-5125
          Fax: 345-946-5126


LRM SECOND: Liquidator to Present Wind Up Accounts on Jan. 23
-------------------------------------------------------------
LRM Second Co.'s final shareholders meeting will be on
Jan. 23, 2007, at:
          
          Caledonian House
          69 Dr. Roy's Drive, 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:

           David S. Walker
           Caledonian Bank & Trust Limited
           Caledonian House
           P.O. Box 1043, George Town
           Grand Cayman, Cayman Islands      


NATIONAL AEROSPACE: Proofs of Claim Filing Deadline Is Jan. 17
--------------------------------------------------------------
National Aerospace Fasteners Corp., Cayman Investment's
creditors are required to submit proofs of claim by
Jan. 17, 2007, to the company's liquidators:

          Chen, Te Jung
          National AeroSpace Fasteners Corp
          No. 1, Tai Ping E. Road
          Ping Chen City, Tao Yuan Hsien
          Taiwan, ROC
          Tel: 886.3.450.8868
          Fax: 886.3.460.4183

Creditors who are not able to comply with the Jan. 17 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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


NATIONAL AEROSPACE: Final General Meeting Is on Jan. 24
-------------------------------------------------------
LRM Second Co.'s final shareholders meeting will be at 1:00 p.m.
on Jan. 23, 2007, at:
          
          No. 1, Tai Ping E. Road
          Ping Chen City, Tao Yuan Hsien
          Taiwan, ROC

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:

           Chen, Te Jung
           No. 1, Tai Ping E. Road, Ping Chen City
           Tao Yuan Hsien, Taiwan, ROC
           Tel: 886 3 450-8868
           Fax: 886 3 460-4183




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


ARAMARK CORP: Moody's Affirms (P)Ba3 Rating on US$4.15-Bil. Loan
----------------------------------------------------------------
Moody's Investors Service affirmed the (P)Ba3 rating on Aramark
Corp.'s proposed US$4.15 billion secured term loan (upsized from
US$3.66 billion) and the (P)B3 rating on US$1.78 billion of
proposed senior notes (upsized from US$1.7 billion).  The
upsized term loan and senior note offerings are intended to
replace a US$570 million senior subordinated note offering
(rated (P)B3 on Jan. 5, 2007) that was cancelled.  Concurrently,
Moody's withdrew the (P)B3 rating on the US$570 million of
proposed senior subordinated notes.  Pro-forma for the
aforementioned capital mix changes, Moody's affirmed the (P)B1
Corporate Family Rating.  The ratings outlook is stable.

The leveraged buyout of ARAMARK is expected to be financed with
a US$4.15 billion secured term loan, US$1.78 billion of senior
unsecured notes and an equity contribution of US$2.1 billion.

Moody's took these ratings on ARAMARK (New Co.):

   -- Affirmed US$600 million secured revolving credit facility
      due 2013, (P)Ba3 (to LGD 3, 36% from LGD 3, 32%);

   -- Affirmed US$4.15 billion secured term loan due 2014,
      (P)Ba3 (to LGD 3, 36% from LGD 3, 32%);

   -- Affirmed US$250 million secured synthetic letter of credit
      facility due 2013, (P)Ba3 (to LGD 3, 36% from LGD 3, 32%);

   -- Affirmed US$1.78 billion senior unsecured notes due 2015,
      (P)B3 (to LGD 5, 86% from LGD 5, 80%);

   -- Affirmed Corporate Family Rating, (P)B1;

   -- Affirmed Probability of Default Rating, B1; and

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

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

Rating actions on ARAMARK (Old):

   -- Affirmed Corporate Family Rating, B1;

   -- Affirmed Probability of default rating, B1;

   -- Affirmed senior unsecured shelf registration, (P)B3
      (LGD 6, 96%); and

   -- Affirmed senior subordinated shelf registration, (P)B3
      (LGD 6, 97%).

Ratings actions on ARAMARK Services:

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

   -- Affirmed senior unsecured shelf registration, (P)B3
      (LGD 6, 96%);

   -- Affirmed senior subordinated shelf registration, (P)B3
      (LGD 6, 97%);

   -- Affirmed US$300 million senior unsecured notes due 2007,
      Baa3;

   -- Affirmed US$31 million senior unsecured notes due 2007,
      Baa3; and

   -- Affirmed US$300 million senior unsecured notes due 2008,
      Baa3.

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 Belgium, Czech Republic, Germany,
Ireland, UK, Mexico, Brazil, Chile, among others.


ARAMARK CORP: S&P Says Loan Add-Ons Won't Affect Debt Ratings
-------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its loan and
recovery ratings on the proposed senior secured credit
facilities of ARAMARK (B+/Negative/--), following the
announcement that the company will increase the term loan by
almost US$500 million.  With the add-on, the total amount of the
term loan is now US$4.15 billion.  

The loan rating was affirmed at 'B+' (the same level as the
corporate credit rating on ARAMARK) and the recovery rating was
affirmed at '2', indicating the expectation for substantial
(80%-100%) recovery of principal in the event of a payment
default.  The company will also increase its senior debt
offering by about US$80 million in lieu of the prior expectation
of issuing US$570 million of subordinated debt.

Net proceeds from the company's proposed enlarged term loan and
senior unsecured debt offering, together with about US$2.1
billion of equity, will be used to finance the acquisition of
ARAMARK by a group of investors led by its chairman and CEO,
Joseph Neubauer, which includes the repayment of about US$1.7
billion of ARAMARK's outstanding debt.

Ratings Affirmed:

   -- Corporate Credit Rating   B+/Negative/--
   -- Senior Secured            B+ (Recovery Rtg: 2)
   -- Senior Unsecured          B-

Rating Withdrawn:
                               To        From
   -- Subordinated              NR        B-

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 Belgium, Czech Republic, Germany,
Ireland, UK, Mexico, Brazil, Chile, among others.




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


NOVELL INC: Asserts Inevitable Bankruptcy of SCO Group
------------------------------------------------------
In a document filed with the District Court of Utah, Novell Inc.
claims that The SCO Group Inc., a UNIX vendor that is suing IBM
for alleged illegal incorporation of its proprietary Unix code
into Linux, is on the verge of bankruptcy, Jennifer Mears of
LinuxWorld reports.

"Contrary to SCO's assertion that a preliminary injunction
should be denied because it may accelerate SCO's bankruptcy,
SCO's imminent bankruptcy is a compelling reason to grant
Novell's motion," Novell's attorneys write in the filing.  "When
SCO goes into bankruptcy, it will not be because of Novell's
motion, but because of its own financial missteps.  For SCO,
bankruptcy is inevitable; it characterizes its assets as merely
those 'remaining' and does not rebut Novell's arguments that its
bankruptcy is imminent."

In September last year, Novell demanded to recover a percentage
of the revenue SCO earned from its UNIX licensing deals with
Microsoft Corp. and Sun Microsystems Inc.

Novell claims that it is entitled to 95% of all revenue derived
from SCO's SVRX license agreements pursuant to a 1995 agreement
governing SCO's purchase of UNIX from Novell.  SCO, however, has
refused to give up any money, claiming that the Microsoft and
Sun licensing deals don't relate with any agreement signed in
1995.  SCO also claims that such a move would harm its chances
of winning its case against IBM, Ms. Mears reports.  

Utah District Court magistrate judge Brooke Wells in June
dismissed 182 of SCO's claims against IBM and U.S. District
Judge Dale Kimball upheld Judge Wells's ruling in a decision
handed down November 29, InformationWeek reports.  The company
has filed a new motion claiming the November decision was
procedurally and substantially flawed.

SCO spokesman Blake Stowell has denied charges that the company
is in financial disaster, Ms. Mears relates.  "We will report
our fourth quarter financials on Jan. 17, 2007 and give an
update at that time," LinuxWorld quotes Mr. Stowell as saying.  
"We consider it irresponsible of Novell's lawyers to
mischaracterize our financial well-being with these false
statements."

                      About SCO Group

Headquartered in Lindon, Utah, The SCO Group Inc. (Nasdaq: SCOX)
-- http://www.sco.com/-- provides software technology for  
distributed, embedded and network-based systems, offering SCO
OpenServer for small to medium business and UnixWare for
enterprise applications and digital network services.

                      About Novell Inc.

Headquartered in Waltham, Massachusetts, Novell, Inc. --
http://www.novell.com/-- delivers Software for the Open  
Enterprise.  With more than 50,000 customers in 43 countries,
Novell helps customers manage, simplify, secure and integrate
their technology environments by leveraging best-of-breed, open
standards-based software.

Novell has sales offices in Argentina, Brazil and Colombia.

                     Waiver of Default

As reported in the Troubled Company Reporter on Sept. 29,2006,
Novell Inc., received a letter from Wells Fargo Bank, NA, the
trustee with respect to company's US$600 million 0.50%
convertible senior debentures due 2024, which asserts that
Novell is in default under the indenture because of the delay in
filing its Form 10-Q for the period ended July 31, 2006.

On Nov. 10, 2006, Novell completed its consent solicitation with
respect to certain amendments to, and a waiver of rights to
pursue remedies available with respect to certain alleged
defaults under, the provisions of the indenture, governing its
0.50% convertible senior debentures due 2024.

Under the terms of the Consent Solicitation Statement, Novell
will pay an additional 7.33% per annum in special interest on
the Debentures from and after Nov. 9, 2006, to Nov. 8, 2007.


SCO GROUP: Denies Looming Bankruptcy Rumors from Novell
-------------------------------------------------------
Contrary to court documents filed by Novell Inc. in the U.S.
District of Utah, SCO Group Inc. spokesman Blake Stowell denies
the company is in financial disaster, Jennifer Mears of
LinuxWorld reports.

"We will report our fourth quarter financials on Jan. 17, 2007
and give an update at that time," LinuxWorld quotes Mr. Stowell
as saying.  "We consider it irresponsible of Novell's lawyers to
mischaracterize our financial well-being with these false
statements."

In a document filed with the District Court of Utah, Novell
claims that The SCO Group Inc., a UNIX vendor that is suing IBM
for alleged illegal incorporation of its proprietary Unix code
into Linux, is on the verge of bankruptcy, Ms. Mears relates.

"Contrary to SCO's assertion that a preliminary injunction
should be denied because it may accelerate SCO's bankruptcy,
SCO's imminent bankruptcy is a compelling reason to grant
Novell's motion," Novell's attorneys write in the filing.  "When
SCO goes into bankruptcy, it will not be because of Novell's
motion, but because of its own financial missteps.  For SCO,
bankruptcy is inevitable; it characterizes its assets as merely
those 'remaining' and does not rebut Novell's arguments that its
bankruptcy is imminent."

In September last year, Novell demanded to recover a percentage
of the revenue SCO earned from its UNIX licensing deals with
Microsoft Corp. and Sun Microsystems Inc.

Novell claims that it is entitled to 95% of all revenue derived
from SCO's SVRX license agreements pursuant to a 1995 agreement
governing SCO's purchase of UNIX from Novell.  SCO, however, has
refused to give up any money, claiming that the Microsoft and
Sun licensing deals don't relate with any agreement signed in
1995.  SCO also claims that such a move would harm its chances
of winning its case against IBM, Ms. Mears reports.  

Utah District Court magistrate judge Brooke Wells in June
dismissed 182 of SCO's claims against IBM and U.S. District
Judge Dale Kimball upheld Judge Wells's ruling in a decision
handed down November 29, InformationWeek reports.  The company
has filed a new motion claiming the November decision was
procedurally and substantially flawed.

                      About Novell Inc.

Headquartered in Waltham, Massachusetts, Novell, Inc. --
http://www.novell.com/-- delivers Software for the Open  
Enterprise.  With more than 50,000 customers in 43 countries,
Novell helps customers manage, simplify, secure and integrate
their technology environments by leveraging best-of-breed, open
standards-based software.

Novell has sales offices in Argentina, Brazil and Colombia.

                      About SCO Group

Headquartered in Lindon, Utah, The SCO Group Inc. (Nasdaq: SCOX)
-- http://www.sco.com/-- provides software technology for  
distributed, embedded and network-based systems, offering SCO
OpenServer for small to medium business and UnixWare for
enterprise applications and digital network services.  The
company has operations in Argentina, Brazil, Colombia and Mexico
in Latin America.




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


PERKINELMER INC: Completes Euroscreen & Evotec Acquisitions
-----------------------------------------------------------
PerkinElmer Inc. has successfully completed two reported
acquisitions that will extend its portfolio of advanced tools
for cellular analysis, and strengthen its leadership position in
the rapidly growing area of High Content Screening.

In the fourth quarter of 2006, the company disclosed its intent
to acquire Euroscreen Products S.A., the Gosselies, Belgium-
based developer of the innovative AequoScreen cellular assay
platform, and Hamburg, Germany-based Evotec Technologies.  
PerkinElmer reported that the Euroscreen Products acquisition
was finalized, and the Evotec Technologies transaction was
completed at year-end 2006.

"The addition of Euroscreen Products' advanced GPCR technology
and Evotec Technologies' highly regarded HCS systems to
PerkinElmer's current portfolio enables us to offer our
biopharma customers a comprehensive solution in advanced
cellular imaging, screening and analysis," Robert F. Friel,
president, PerkinElmer Life and Analytical Sciences, said.

Ongoing revenue of the combined entities was approximately
US$25 million in 2006, and both acquisitions are expected to be
neutral to slightly accretive to the Company's 2007 earnings per
share.

PerkinElmer Inc. (NYSE: PKI) -- http://www.perkinelmer.com/--  
is a global technology leader driving growth and innovation in
Health Sciences and Photonics markets to improve the quality of
life.  PerkinElmer reported revenues of US$1.5 billion in 2005,
has 8,000 employees serving customers in more than 125
countries, and is a component of the S&P 500 Index.  In Latin  
America, PerkinElmer has offices in Argentina, Bolivia, Brazil,  
Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El  
Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama,  
Paraguay, Peru, Puerto Rico, Uruguay and Venezuela.

                        *    *    *

PerkinElmer Inc.'s Long Term Subordinated Debt carry Moody's
Investors Service's Ba1 rating.




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


AHORROS Y PRESTAMOS: Liquidation Proceeding Concluded
-----------------------------------------------------
The liquidation of Asociacion Central de Ahorros y Prestamos
-- a savings and loan firm intervened on Nov. 9, 2006, by
authorities for irregularities -- has been concluded, Dominican
Today reports, citing Rafael Camilo Abreu, Dominican Republic's
banks superintendent.

The depositors have received their savings, DR1 Newsletter
relates, citing Mr. Abreu.

DR1 emphasizes that at Ahorros y Prestamos, 2% of depositors
with over DOP500,000 were responsible for 96.6% of the deposits.  
The liquidation started with the 3,502 people with savings of
less than DOP500,000, or a total of DOP28.6 million.

Mr. Abreu told Dominican Today that there will be no legal
charges for Ahorros y Prestamos' administrators, given that the
problems broke out due to poor management rather than fraud on
deposits, and that costs were covered with the entities assets.

Payments were made with plots of land that Ahorros y Prestamos
owned, DR1 says, citing Mr. Abreu.  This is the case of the
BanReservas, which received payment for a loan to the firm with
the transfer of land valued at DOP600 million.

Dominican Today underscores that part of the deposits, including
Banreservas' DOP449 million pension funds, were mitigated by the
land property.  However, the land belonged to the State Sugar
Council and had been bought by Constructora Hernandez Paulino.  
The CEA has collected DOP78 million for payment on the land, and
the source of the remaining portion of money is yet to be
defined.

Mr. Abreu admitted to DR1 that he doesn't know who will pay the
remaining debt on the land.

Monetary authorities are talking with CEA to find a way to
secure retention of the funds that were registered as property
of Ahorros y Prestamos, Mr. Abreu told Dominican Today.  

On the other national savings and loans institutions, at least
four of the 17 existent businesses must be absorbed by other
larger entities, as they are in no condition to satisfy existing
norms for the financial sector, Dominican Today states, citing
Mr. Abreu.

The three leading savings and loans organizations -- La
Nacional, Popular and Cibao de Ahorros y Prestamos -- could take
over the operation of four provincial savings and loans banks
that don't meet the new banking regulations, Mr. Abreu told DR1.

Rafael Camilo Abreu can be reached at:

        Superintendencia de Bancos de la Republica Dominicana
        Av. Leopoldo Navarro esq. Av. Mexico, N 52. Gazcue. D.N.
        Apartado Postal 01326
        Phone: 809-585-8141
        Fax: 809-685-0859
        E-mail: webmaster@supbanco.gov.do


BANCO INTERCONTINENTAL: Justice Ministry Dumps Some Evidence
------------------------------------------------------------
The Justice Ministry has trashed as evidence a file of
challenged 2001 and 20002 financial statements of Banco
Intercontinental, as well as the over 14 annexes with hundreds
of pages that the prosecution did not read before the court,
Dominican Today reports.

Dominican Today relates that the evidence the prosecution
abandoned tried to prove the existence of a hidden or parallel
bank in Banco Intercontinental.

Presiding judge Antonio Sanchez Mejia had warned that anything
that was not read could be introduced as evidence and be taken
into account in the proceedings, Dominican Today notes.  

Dominican Today underscores that after the hearing ended, Marino
Vinicio Castillo -- the head of the defense team -- said, "The
massive retirement of annexed evidence and of hundreds of pages
deposited with great publicity by the accusing part reveals a
resounding collapse of the accusation.  It's evident that this
retirement clearly indicates that the Justice Ministry does not
believe in the effectiveness of that supposed evidence and their
annexes.  The time has come for their debate and the case is
collapsing."

The prosecution deliberately omitted parts to jeopardize Mr.
Figueroa, Dominican Today says, citing Mr. Castillo.  The
evidence reflects that the regulatory authorities granted a
legal extension so that Mr. Figueroa could present his financial
statements corresponding to the end of 2002 to a limit date of
March 24, 2003.

"This document irremissibly annihilates the supposed rough draft
read as supposed evidence (by the Prosecution) because it shows
that that financial statement never existed, but on the
contrary, that the March 24, 2003, limit date, voluntarily and
in a joint manner with the Progreso Bank sent the merger
contract annexed only with what had the real size of the assets
and liabilities of Baninter (Banco Intercontinental), which was
approved without objection by the Monetary Board," the defense
told Dominican Today.

Marino Vinicio Castillo can be reached at:

          Fuerza Nacional Progresista
          Presidente
          Consejo Nacional de Drogas
          Oficinas Gubernamentales, Bloque C
          Avenida Mexico esq. 30 de Marzo
          Tel. 809-2221-4747
          809-221-5166
          Email: of.pcastillo@codetel.net.do

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


SMURFIT KAPPA: Confirms Possible Initial Public Offering Plans
--------------------------------------------------------------
Smurfit Kappa Group confirmed it is considering an initial
public offering, AFX News reports.

The confirmation follows recent market speculation of a possible
share offer.

The company will seek creditors' approval to alter some terms of
its senior credit facility to facilitate an IPO this year, AFX
News relays.

                  About Smurfit Kappa Group

Headquartered in Dublin, Ireland, Smurfit Kappa Group --
http://www.smurfit-group.com/-- manufactures containerboard  
containerboard and converts it into corrugated cases, folding
cartons, paper sacks, tubes, and composite cans. Other products
include boxboard, sack kraft paper, and printing and writing
paper.  The company produces 6 million tons of paper annually
and has 300 facilities worldwide.  In Latin America, the company
operates in Argentina, Brazil, Chile, Colombia, Costa Rica,
Dominican Republic, Ecuador, Mexico and Venezuela.

                        *    *    *

Fitch Ratings affirmed Smurfit Kappa Acquisitions' Issuer
Default Rating at 'B+'.  At the same time the agency affirmed
the instrument ratings.  A Stable Outlook has been assigned.

The stable outlook assigned to Smurfit Kappa Group's ratings
reflects Fitch's view that EBITDA will return to growth during
the course of 2006 and that SKG will be in a position to
generate significant cashflow for debt repayment from 2007-8.


SMURFIT KAPPA: S&P Puts B+ Rating on Watch Positive on IPO Plans
----------------------------------------------------------------
Standard & Poor's Ratings placed all its ratings on Ireland-
based paper and packaging company Smurfit Kappa Group Ltd. and
related entities, including its 'B+' long-term corporate credit
rating on the group, on CreditWatch with positive implications.

This follows the group's announcement that it is considering an
initial public offering.  The '3' recovery rating on the group's
senior secured debt has not been placed on CreditWatch.
     
"A successful IPO could improve Smurfit Kappa's financial
profile should the proceeds be used for debt repayments,
although it should be noted that the group's current credit
measures are very weak for the existing ratings," said
Standard & Poor's credit analyst Alf Stenqvist.

Standard & Poor's estimates that Smurfit Kappa's adjusted-debt-
to-EBITDA ratio for full-year 2006 was slightly below 7x.  At
the end of September 2006, Smurfit Kappa had adjusted debt of
about EUR5.7 billion, including unfunded postretirement
liabilities of EUR635 million.

Regardless of whether the group carries out an IPO, its credit
measures are expected to improve in 2007, owing to gradually
improving operating performance.  This is a result of improving
market conditions and benefits from a rationalization program,
which have helped offset higher input costs.

Standard & Poor's will follow the developments of Smurfit
Kappa's IPO plans.  Any potential rising of the ratings will
depend on a successful completion of an IPO, and its impact on
the group's financial profile.  In addition, Standard & Poor's
will review the group's business and financial strategies before
resolving the CreditWatch.


* DOMINICAN REPUBLIC: Seeks European Deal for Sugar Industry
------------------------------------------------------------
The Dominican Republic government is looking for ties to enter a
European Union deal for its sugar industry that its Caribbean
neighbors are currently enjoying, an industry official told AFX
News.

The Dominican sugar industry was once dominant but lost ten
thousands of jobs in over 20 years and is on the verge of losing
even more millions of dollars worth of trade protections if and
when the Central American Free Trade Agreement that is supported
by the U.S. becomes effective in the subsequent months,
Dominican Sugar Institute technical manager Manuel Dominguez
told AFX.

As to prevent this crisis from happening, local producers are
asking for assistance from the European Union, in hopes that
officials will increase the present 40,000 metric tons of
European quota to 50,000 metric tons per year and enjoy the same
preferential prices that producers from Guyana, Jamaica, Belize
and Barbados currently have, AFX relates.

Mr. Dominguez informed AFX that the current European Union's
preferential prices are roughly US$3 per pound higher than what
Dominican producers earn in Europe.  This is even higher even
with the imposed 36% cut to sugar subsidies a year ago that the
World Trade Organization requested.

Dominican Foreign Minister Carlos Morales Tronsoco already
discussed the proposal with European officials in a visit to
Brussels in December and in a conference with the 15-member
Caribbean Community in Guyana on Jan. 13.

Mr. Dominguez told AFX that he was not still sure what the
European Union would do.

"This is creating a new option and thinking about a future," Mr.
Dominguez was quoted by AFX.

This move, however, prompted the displeasure of the members of
the Caribbean Sugar Association.  The group claimed that the
Dominican Republic has vowed decades ago not to enter into the
agreement that guarantees high prices to other former colonies
in the Caribbean, Africa and the Pacific, AFX says.

The group is worried of what an influence the nation's proposal
could have on other Caribbean producers that are fighting the
current EU cuts, AFX adds.

"We are not going to support them getting into the sugar
protocol and if they do, it should not be at the expense of our
allocated quota," Guayanese Agriculture Minister Robert Persaud
commented to AFX.

                        *    *    *

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


ADVANCED MICRO: Shares Drop 10% as Lower Prices Cut Profit
----------------------------------------------------------
Advanced Micro Devices Inc.'s shares dropped nearly 10% Friday
after the company warned of substantially lower profits caused
by a price war with its bigger rival Intel Corp., Chris Nuttall
writes for the Financial Times.

AMD disclosed expects revenue, excluding ATI-related segments,
for the fourth quarter ended Dec. 31, 2006, to increase
approximately three percent from the US$1.33 billion reported in
the third quarter of 2006.  Fourth quarter operating income,
excluding ATI-related segments and acquisition-related charges,
is expected to be positive but substantially lower than in the
third quarter.  The company said that its fourth quarter gross
margin and operating income were impacted by "significantly
lower microprocessor average selling prices, which largely
offset a significant increase in unit sales."

FT reports that AMD's total expected sales of US$1.72 billion
for the fourth quarter, including expected revenue of US$350
million from the purchase of ATI Technologies, is below analyst
expectations of US$1.85 billion for the fourth quarter.  Bank of
America semiconductor analyst Sumit Dhanda expressed the figures
as a big miss.

Joe Osha, an analyst at Merrill Lynch, warned that AMD might
lose money in the first half of 2007 citing competition from
rival Intel, slower discovery in its ATI's graphics card
business and the need to raise capacity.

AMD will report fourth quarter 2006 consolidated results after
market close on Jan. 23, 2007.

                         About AMD

Based in Sunnyvale, California, Advanced Micro Devices Inc.
(NYSE: AMD) -- http://www.amd.com/-- designs and produces  
innovative microprocessor and graphics and media solutions for
the computer, communications, and consumer electronics
industries.  The company has corporate locations in Sunnyvale,
California, Austin, Texas, and Markham, Ontario, and global
operations include those in Bolivia, Chile, Colombia and
Ecuador, among others.

                        *    *    *

As reported in the Troubled Company Reporter on Oct. 31, 2006,
in connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. technology semiconductor and
distributor sector, the rating agency affirmed its Ba3 corporate
family rating on Advanced Micro Devices, Inc.

As reported in the Troubled Company Reporter on Oct. 6, 2006,
Standard & Poor's Ratings Services affirmed its 'B+' corporate
credit rating on AMD.  The rating agency also assigned its 'BB-'
bank loan rating, one notch above the corporate credit rating,
and a '1' recovery rating to the company's proposed US$2.5
billion senior secured term loan, to be used as partial funding
of the acquisition.  S&P further raised its rating on the
company's US$600 million (US$390 million outstanding) senior
notes to 'B+' from 'B'.


* ECUADOR: Bondholders Positive President Won't Default on Debts
----------------------------------------------------------------
Ecuador bondholders don't believe President Rafael Correa will
opt to default on the country's US$11 billion of foreign debts,
Lester Pimentel at Bloomberg News reports.

As widely reported, the Ecuadorian President said in December
2006 the country would likely hald debt payments in order to
spend more for health care and education.  

Bloomberg says investors believe otherwise because of Ecuador's
funds from rising oil exports, quickening economic growth and a
budget surplus.

"There is no reason to default, he can pay," Arthur Byrnes, who
manages US$800 million at Deltec Asset Management in New York,
told Bloomberg. "I seriously doubt he would be that foolish."

Mr. Byrnes, Bloomberg says, holds US$1 million of the bonds due
in 2030.

Ecuador's 10% bonds due 2030 trade at 78 cents on the dollar.  
The bonds were trading below at 35 cents when the country
defaulted on its debts in 1999.  

As reported on Jan. 10, 2007, Moody's Investors Service changed
the outlook on Ecuador's sovereign ratings to stable from
positive in light of increasing concerns regarding the incoming
government's willingness to service debt obligations and
uncertainty about its policy direction.

The outlook change affects Ecuador's Caa1 foreign currency
government bond rating, its Caa1 country ceiling for foreign
currency bonds, and its Caa2 country ceiling for foreign
currency bank deposits.  Ecuador's other ratings, including the
Ba2 country ceiling for local currency bonds, are unchanged.




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


BANCO DE COMERCIO: Guatemala Suspending Bank's Operations
---------------------------------------------------------
A central bank spokesperson told Reuters that Guatemala will
suspend operations at Banco de Comercio.

"The bank (Banco de Comercio) itself requested the suspension,"
the spokesperson told Reuters.

Reuters relates that Banco de Comercio asked the Guatemalan
banking superintendent to intervene on Jan. 11.

Banco de Comercio is a privately owned bank with 36 branches and
assets of around US$150 million.  It started operations in 1993.

The spokesperson told Reuters that it was too early to formally
give a reason.  However, the likely cause of Banco de Comercio's
closure was that the bank had lent more than it is allowed by
law.  The central bank will be giving more details.

The banking superintendent was discussing how to recover the
money in Banco de Comercio's over 100,000 accounts, Reuters
says, citing the spokesperson.

The spokesperson told Reuters, "The problem is limited to this
bank.  One advantage is that it doesn't have offshore
operations, and it's small."

The spokesperson said that there was no apparent connection to
Bancafe, which collapsed in September 2006, sparking a rush of
cash withdrawals by nervous account holders at other banks,
Reuters states.


* GUATEMALA: Suspending Banco de Comercio's Operations
------------------------------------------------------
A central bank spokesperson told Reuters that the Guatemalan
government expects to suspend Banco de Comercio, the second bank
in the country to collapse in four months.

Reuters reports that the bank asked the banking superintendent
to intercede on Jan. 11.  The source said that there was no
formal disclosure on the bank's reason to be suspended, but the
bank's lending out more than allowed by the law may have
prompted it.  

The spokesman continued to tell Reuters that the bank asked for
the suspension and added that the superintendent was in talks on
how to recover money in Banco de Comercio's more than 100,000
accounts.

                        *    *    *

Fitch Ratings assigned these ratings on Guatemala:

                     Rating     Rating Date
                     ------     -----------
   Country Ceiling    BB+      Feb. 22, 2006
   Long Term IDR      BB+      Feb. 22, 2006
   Short Term IDR     B        Feb. 22, 2006
   Local Currency
   Long Term Issuer
   Default Rating     BB+      Feb. 22, 2006

Fitch also rated Guatemala's senior unsecured bonds:

Maturity Date          Amount        Rate       Ratings
-------------          ------        ----       -------
Aug. 3, 2007        US$150,000,000     8.5%         BB+
Nov. 8, 2011        US$325,000,000    10.25%        BB+
Aug. 1, 2013        US$300,000,000     9.25%        BB+
Oct. 6, 2034        US$330,000,000     8.125%       BB+




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


* HONDURAS: Government to Control Exxon, Chevron Oil Terminals
--------------------------------------------------------------
The Honduran government will temporarily take control of oil
storage terminals operated by Exxon Mobil, Chevron Corp. and
DIPPSA, after rental talks failed, Reuters reports.

President Manuel Zelaya told Reuters that the move is part of a
government import program meant to drive down fuel prices.  

"It is not a nationalization, it's a temporary use of the
storage tanks through a lease and payment of a reasonable
price," the Honduran President was quoted by Reuters as saying.

Reuters relates that the new program could save the government
about US$66 million a year.

President Zelaya explained that the program would allow the
government to go ahead with a deal with Conoco Phillips to
import at least 8.4 million barrels of gasoline and diesela
year.

                        *    *    *

Moody's Investor Service assigned these ratings on Honduras:

                     Rating     Rating Date

   Senior Unsecured    B2       Sept. 29, 1998
   Long Term IDR       B2       Sept. 29, 1998




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


AIR JAMAICA: Responding to Union's Proposals This Week
------------------------------------------------------
Air Jamaica will respond to the National Workers Union's
proposals for the airline this week, Radio Jamaica reports.

Radio Jamaica relates that the National Workers Union President
Vincent Morrison presented a seven-point proposal during the
Jan. 10 meeting of the parliamentary committee, which is looking
into the operations of Air Jamaica.  The proposal includes:

         -- rationalization of routes and a fleet review,

         -- re-capitalization of the airline with workers having
            a stake in its ownership,

         -- expansion of Board of Directors to include two
            members of the pilot and ground staff, and

         -- cutting down the number of airline's management team
            as it seems overstaffed.

Air Jamaica's management are reviewing the union's
recommendations, Radio Jamaica notes, citing OK Melhado, the
airline's chairperson.

A full response will be given during the next meeting of the
parliamentary committee, Mr. Melhado told Radio Jamaica.

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.


DYOLL INSURANCE: Earl Witter May Handle Insurance Payment Clash
---------------------------------------------------------------
The Jamaica Agricultural Society or JAS wants Public Defender
Earl Witter's intervention in the insurance payment battle
between Dyoll Insurance Co.'s liquidators and coffee farmers,
the Jamaica Observer reports.

According to The Observer, Senator Norman Grant, who heads the
JAS, said in a JAS St. Andrew Association of Branch Societies
meeting, "Next week (this week), we will be writing to the
Office of the Public Defender seeking his intervention into the
dispute between the trustees and the liquidators, in an effort
to get the matter arbitrated so we can have closure to the
issue."

It has been over eight months since the Supreme Court ruled in
favor of the farmers, but nothing has happened since, The
Observer says, citing Sen. Grant.

The Observer underscores that in July 2006 the court authorized
the coffee farmers to access US$3.1 million due to them, as
insurance benefits from Dyoll Insurance, for damages suffered
during Hurricane Ivan in September 2004.  Justice Sykes had said
then that the money was for the sole benefit of Jamaican coffee
farmers who were insured by Dyoll Insurance up to the time of
the hurricane.

The report says Munich Re holds the funds.
  
After the court issued the decision, joint liquidators John Lee
of PriceWaterhouseCoopers and Kenneth Krys of RSM Cayman Islands
gave notice of appeal, which has delayed the payment since.
Messrs. Lee and Krys had insisted that the funds should be
shared among other beneficiaries, including those in the Cayman
Islands, The Observer notes.

Sen. Grant commented to The Observer, "I know that the joint
liquidators have indicated that they will appeal the judgment.  
It is a situation, which greatly saddens me, but they have their
rights.  We have run out of patience and the longer the funds
stay there, without a decision being taken, is the greater the
chance that by the time a decision is made, there will be
nothing left to distribute."

The legal fees were excessive and were making a huge dent in the
US$3.1-million being held in escrow pending a final decision,
The Observer notes, citing Sen. Grant.

Sen. Grant told The Observer, "It doesn't make any sense that we
win the battle and lose the war.  I think that it is an
opportune time for us to call on the public defender to step in
to try to bring arbitration into the process to bring conclusion
to the matter."

The Observer emphasizes that in the meantime, the Jamaican
government has advanced US$100 million to the coffee farmers.

Though up to 10,000 farmers would benefit, 75% of them would get
about 30% of the total as it was really the big farmers who
would benefit, Roger Clarke, the minister of agriculture in
Jamaica, told The Observer.

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




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


ADVANCED MARKETING: Hachette Book Blocks US$75-Mln DIP Financing
----------------------------------------------------------------
Hachette Book Group USA Inc. asked the U.S. Bankruptcy Court for
the District of Delaware to reject Advanced Marketing Services
Inc. and its debtor-affiliates' request to obtain US$75,000,000
of DIP Financing.

The Hon. Christopher S. Sontchi of the Delaware Bankruptcy Court
recently authorized Advanced Marketing Services and its debtor-
affiliates, on an interim basis, to dip their hands into the DIP
financing facility arranged by Wells Fargo Foothill for a
consortium of lenders.

AMS, Publishers Group Inc., and Publishers Group West Inc. are
borrowers under a Loan and Security Agreement dated
April 27, 2004, with Wells Fargo Foothill Inc., as agent, and a
consortium of lenders.  The Senior Facility provides for a
revolving line of credit up to a maximum commitment level of
US$90,000,000.

Curtis R. Smith, AMS's vice-president and chief financial
officer, relates that the Senior Lenders have agreed to continue
to provide liquidity to the Debtors through a DIP Loan Facility,
which carries forward many of the terms of the Senior Facility.

Against this backdrop, the Debtors seek the Court's authority to
obtain from Foothill and the Senior Lenders, through the DIP
Loan Facility, cash advances and other extensions of credit in
an aggregate principal amount of up to US$75,000,000.

Hachette Book Group USA Inc., formerly known as Time Warner Book
Group, has been a supplier of books to AMS, over the past 20
years.  The Debtors have listed Hachette Book as their fourth
largest unsecured creditor, holding an unsecured claim for
US$22,569,624.

Jeffrey A. Marks, Esq., at Squire, Sanders & Dempsey L.L.P, in
Cincinnati, Ohio, says that during the 45 days before the
Petition Date, Hachette Book sold books to AMS for which it has
not yet been paid.  Accordingly, Hachette Book has the right to
reclaim the books sold to AMS during that period under Section
546(c) of the Bankruptcy Code, and to an administrative expense
claim for those books sold to AMS during the 20-day period
before the Petition Date under Section 503(b)(9).

To that end, on the Petition Date, Hachette Book sent an initial
reclamation demand to Mark D. Collins, Esq. of Richards, Layton
& Finger, P.A., the Debtors' proposed local counsel, demanding
reclamation and reserving its rights to supplement and amend its
reclamation demand upon further review of its books and records.

Hachette Book complains that pursuant to the DIP Loan Facility,
the Borrowers have obligated themselves, via an affirmative
covenant in the DIP Loan Agreement, to comply with the Qualified
Transaction Timeline providing, among other things, that:

   (i) within 10 days after the Petition Date, the Borrowers
       must file a motion to sell all or substantially all of
       their assets, or refinance or recapitalize so as to pay
       the Lenders in full; and

  (ii) within 50 days after filing the Sale Motion, the
       Borrowers must have received cash proceeds from a sale or
       Other transaction sufficient to pay the Lenders in full.

Mr. Marks notes that this obligation under the DIP Loan Facility
will fundamentally and irrevocably dictate the course of conduct
of the Debtors' bankruptcy case.  However, the Court, creditors
and other parties-in-interest simply have not been provided
sufficient information or opportunity to determine whether a
sale or other transaction, under the time frame stipulated, is
an appropriate resolution of the bankruptcy case, and is
otherwise in the best interests of the Debtors' estate and
creditors.

Mr. Marks also asserts that:

   (a) The request fails to specify a proposed maximum borrowing
       for the period before the Final Hearing;

   (b) The proposed time frame within which to investigate and,
       if appropriate, challenge, the position of the
       Lender/Senior Lender is too short and is overbroad in
       certain respects;

   (c) Certain provisions relating to the Professional Fee
       Carve- Expenses are unclear, specifically, the
       Distinction between the US$2,000,000 carve-out that is
       proposed to be in effect before a Payoff Event and the
       US$3,000,000 carve-out after a Payoff Event; and

   (d) The procedure for approval of a Non-Material Amendment is
       inappropriate to the extent that it permits an
       abbreviated approval process for an amendment that may in
       fact be material.  The definition of Non-Material
       Amendment encompasses provisions as any new, subsequent,
       modified, restated or amended covenants or conditions
       acceptable or required by the Lenders.  The covenants or
       conditions could very well include material provisions.

Quarto Inc.; Quarto Publishing, PLC; Book Sales Inc.; Creative
Publishing International Inc.; Walter Foster Inc.; and Design
Eye Limited, agree with Hachette's arguments.

The Quarto Entities assert claims exceeding US$3,200,000 against
the Debtors.

The Quarto Entities also contend that the US$2,400,000 extension
fee paid on July 31, 2006, to the Lenders under the Debtors'
Loan and Security Agreement with Wells Fargo Foothill Inc., as
well as the US$750,000 closing fee under the DIP Facility are
excessive and should be subject to close examination and
disallowance.

The Quarto Entities are represented in the Debtors' cases by
Victor A. Sahn, Esq., at Sulmeyer Kupetz, in Los Angeles,
California.

                  About Advanced Marketing

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 expires on Apr. 28.  (Advanced
Marketing Bankruptcy News, Issue No. 2; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)


ADVANCED MARKETING: Taps Richards Layton as Local Bankr. Counsel
----------------------------------------------------------------
Advanced Marketing Services Inc. and its debtor-affiliates seek
authority from the U.S. Bankruptcy Court for the District of
Delaware to employ Richards, Layton & Finger, P.A. as their
local bankruptcy counsel, nunc pro tunc to the Petition Date.

Richards Layton will be performing extensive legal services that
will be necessary during the Chapter 11 proceedings.

Aside from the firm's extensive knowledge in the field of
debtors' and creditors' rights and business reorganizations, the
Debtors also desire to employ Richards Layton because of its
expertise, experience, and knowledge in practicing before the
Delaware Bankruptcy Court, its proximity to the Court, and its
ability to respond quickly to emergency Court matters.

Richards Layton began providing legal services and advice to the
Debtors since December 2006.  During the firm's representation
period, it has acquired knowledge of the Debtors' business,
financial affairs, and capital structure.

The Debtors believe that Richards Layton is well qualified and
capable to efficiently represent them in the Chapter 11 cases.

As the Debtors' counsel, Richards Layton will:

   (a) advise the Debtors of their rights, powers and duties as
       debtors and debtors in possession;

   (b) take all necessary action to protect and preserve the
       Debtors' estates, including the prosecution of actions,
       the defense of any actions against the Debtors, the
       negotiation of disputes involving the Debtors and the
       preparation of objections to claims;

   (c) prepare all necessary motions, applications, answers,
       orders, reports and papers in connection with the
       administration of the debtors' estates; and

   (d) perform all other necessary legal services in connection
       with the Chapter 11 cases.

Richards Layton will be paid on an hourly basis at its normal
and customary hourly rates, plus reimbursement of actual,
necessary expenses and other charges incurred:

       Professional                      Hourly Rate
       ------------                      -----------
       Mark D. Collins                     US$520
       Paul N. Heath                       US$350
       Chun I. Pang                        US$225
       Aja E. McDowell                     US$165

Mark D. Collins, Esq., a director at Richards Layton, reports
that prior to the Petition Date, the Debtors paid the firm a
US$125,000 retainer.

The Debtors propose that the amount paid be treated as an
evergreen retainer to be held by the firm as security throughout
the Chapter 11 cases, until its fees and expenses are awarded.

Mr. Collins assures the Court that his firm is a "disinterested
person," as that term is defined in Section 101(14) of the
Bankruptcy Code, and does not hold or represent any interest
adverse to the estates.

                  About Advanced Marketing

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 expires on Apr. 28.  (Advanced
Marketing Bankruptcy News, Issue No. 2; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)


ADVANCED MARKETING: Wants to Hire O'Melveny as Bankruptcy Atty.
---------------------------------------------------------------
Advanced Marketing Services Inc. and its debtor-affiliates seek
authority from the U.S. Bankruptcy Court for the District of
Delaware to employ O'Melveny & Myers LLP as their general
bankruptcy counsel, nunc pro tunc to the Petition Date.

Since April 2004, O'Melveny has represented the Debtors as
general corporate, securities, and litigation counsel.  It has
provided:

   -- extensive representation and advice relating to the
      Debtors' prepetition Loan and Security Agreement with
      Wells Fargo Foothill Inc., as agent, and a syndicate of
      lenders;

   -- efforts to refinance the Senior Facility and other
      strategic alternatives to recapitalize the Debtors; and

   -- disclosure advice regarding the Debtors' public
      announcements and regulatory obligations.

The Debtors want to hire O'Melveny because of the firm's
knowledge in their operations and finances, and its expertise
and experience in reorganizations, bankruptcy cases, and other
relevant areas of expertise.

As the Debtors' general bankruptcy counsel, O'Melveny will:

   (a) advise the Debtors regarding matters of bankruptcy law;

   (b) advise the Debtors of the requirements of the Bankruptcy
       Code, the Federal Rules of Bankruptcy Procedure,
       applicable local bankruptcy rules pertaining to the
       administration of their cases and U.S. Trustee Guidelines
       related to the daily operation of their business and the
       administration of the estates;

   (c) prepare motions, applications, answers, proposed orders,
       reports and papers in connection with the administration
       of the estates;

   (d) negotiate with creditors, prepare and seek confirmation
       of a Chapter 11 plan and related documents and assist the
       Debtors with implementation of the plan;

   (e) assist the Debtors in the analysis, negotiation and
       disposition of certain estate assets for the benefit of
       the estates and their creditors;

   (f) advise the Debtors regarding general corporate and
       securities matters and bankruptcy related employment and
       litigation issues; and

   (g) render other necessary advice and services as the Debtors
       may require in connection with their cases.

O'Melveny will be paid on an hourly basis at its normal and
customary hourly rates, plus reimbursement of actual, necessary
expenses and other charges incurred:

       Professional                      Hourly Rate
       ------------                      -----------
       Suzzanne Uhland                     US$725
       Austin Barron                       US$540
       Alexandra Feldman                   US$445
       Ana Acevedo                         US$300
       Lynn Talab                          US$285

Suzzanne Uhland, Esq., a partner at O'Melveny, discloses that
before the Petition Date, the Debtors paid O'Melveny
US$1,201,990 for fees and expenses for advice and legal services
rendered in connection with restructuring advice and the
preparation and commencement of the Debtors' cases, as well as
to serve as a retainer.  During the 90-day period before the
Petition Date, the Debtors paid invoices totaling US$942,682 to
the firm.

According to Ms. Uhland, after deducting fees and expenses
previously billed and paid for the prepetition legal services
plus estimated unbilled prepetition amounts, approximately
US$721,038 remains as retainer, which will be applied to
postpetition services.

Ms. Uhland attests that her firm is a "disinterested person," as
that term is defined in Section 101(14) of the Bankruptcy Code,
and does not hold or represent any interest adverse to the
estates.

                  About Advanced Marketing

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 expires on Apr. 28.  (Advanced
Marketing Bankruptcy News, Issue No. 2; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)


DELTA AIR: S&P Says Ratings Unaffected by US Airways Higher Bid
---------------------------------------------------------------
US Airways Group Inc. (B-/Watch Dev/--) raised its acquisition
bid for Delta (rated 'D') to US$5 billion of cash and stock
valued currently at US$5.2 billion (an approximate 19% increase
over the previous proposal), raising pressure on Delta, whose
management seeks to reorganize as an independent entity.

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

US Airways' revised bid would expire Feb. 1, 2007, unless the
Delta creditors' committee (which is the principal group whose
approval is needed for a merger) supports commencement of due
diligence, making required filings under the Hart-Scott-Rodino
Act, and postponement of Delta's Feb. 7, 2007, hearing on its
disclosure statement.

"The offer is likely to increase support among unsecured
creditors for exploring the acquisition bid, but Delta's [and
possibly US Airways'] labor groups are likely to continue to
oppose the merger, and any transaction would have to clear
federal antitrust review," said Standard & poor's credit analyst
Philip Baggaley.  "The increased US Airways' offer may also
prompt competing bids from other airlines, most likely UAL Corp.
[B/Stable/--] or possibly Northwest Airlines Corp. [rated 'D'],
which, like Delta, is in Chapter 11 but also expected to emerge
in the second or third quarter of 2007."

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.


GENERAL MOTORS: Outlines Priorities for 2007 & Increases CapEx
---------------------------------------------------------------
General Motors Corp. chairman and chief executive officer Rick
Wagoner informed securities analysts that GM has made
considerable progress in its North America turnaround, and
outlined 2007 priorities for the automaker's ongoing
transformation.

"GM's North America turnaround plan moved faster and further
than people expected a year ago," Mr. Wagoner said.  "To be
direct, 2006 needed to be a huge year for us -- and it was."

Mr. Wagoner noted that through the third quarter of last year,
GM's adjusted net income had improved by US$4.2 billion to a
profit of US$1.9 billion, with most of the improvement coming in
North America.  GM's improvement was also aided by strong
financials and positive results outside North America,
particularly in China.  In addition, liquidity remained strong
with over US$20 billion cash on hand at the end of the third
quarter.

An important area of improvement for GM in 2006 was in
structural cost.  The company far exceeded its reduction target
of US$6 billion in North America on an annual running-rate
basis, achieving US$9 billion of cost reduction on a running-
rate basis by year-end 2006.

"We expect to reflect at least US$6 billion of these savings in
our 2006 financials, and then realize the full US$9 billion
savings in 2007," Mr. Wagoner said.  "This represents a major
first step in achieving our aggressive global target of reducing
structural costs to 25% of revenue by 2010."

In fact, GM reduced its global automotive structural costs from
34% of revenue in 2005, to between 29% and 30% of global revenue
in 2006, and expects to further improve on that figure during
2007.

GM also made big moves on the revenue side of its turnaround
plan in 2006, especially in terms of its sales and marketing
strategy.  Thanks to a disciplined approach that included
reduced prices, lower incentives, and a renewed focus on
products and brands, GM achieved its U.S. retail sales target of
3 million units.  The other big move, Mr. Wagoner noted, came
with GM's introduction last September of the best powertrain
warranty of any full-line manufacturer -- five years or 100,000
miles on every 2007 model year GM car and light-duty truck.

"Overall, there is a lot more work to do, but we stand today in
a much more favorable position than we did just 12 months ago,"
he added.

Mr. Wagoner said GM has five key priorities for 2007:

   -- Stay focused on the North America turnaround;

   -- Continue to drive aggressively in emerging markets, such
      as China, Brazil, Russia, and India;

   -- Maximize the benefits of running the business globally;

   -- Build on GM's comprehensive advanced propulsion strategy;
      and

   -- Continue to improve business results, especially improved
      earnings and cash flow.

For the North American turnaround, Mr. Wagoner pointed out that
product excellence was the most important element of the
strategy, and "will continue to remain our absolute number-one
focus."  To that end, he announced that GM's global capital
spending would increase from under US$8 billion in 2005 and
2006, to between US$8.5 billion and US$9 billion in 2007 and
2008.

"We have had a very positive reaction to our newest vehicles,
including the Chevy Tahoe, GMC Yukon, and Cadillac Escalade
full-size utilities, and the Saturn Outlook, GMC Acadia, and
Buick Enclave midsize crossovers," Mr. Wagoner said.

"We also swept the car and truck of the year awards at the North
American International Auto Show in Detroit with the Saturn Aura
and Chevrolet Silverado.

"The progress in the execution of our new cars and trucks around
the world is a credit to the men and women of General Motors.  
And we're going to continue raising the bar in future product,
with a particular focus on outstanding design and technology
leadership," he added.

In terms of the global marketplace, Mr. Wagoner noted that 55%
of the company's unit sales were outside the United States in
2006, and that this trend would likely continue.  To capitalize
on this opportunity, Mr. Wagoner said GM would continue to push
hard and build on its already strong position in emerging
markets.

This worldwide sales growth will be aided by GM's continued
efforts to run its business globally, particularly in product
development, manufacturing, purchasing, and powertrain.

"This move to run the business in a globally integrated manner
is, in fact, probably the most profound change that is going on
in the company today," Mr. Wagoner explained.

"In 2007, we'll drive to accelerate the value we realize from
global integration of GM."

GM's leveraging of global resources is also a key element of the
company's drive to achieve energy diversity and environmental
leadership, as evidenced by the introduction this week of the
Chevrolet Volt concept car, an extended-range electric vehicle
based on GM's all-new E-Flex technology.

E-Flex is a family of electrically driven propulsion systems for
future small and midsize GM vehicles, and a potential "game-
changer" for GM and the auto industry, Mr. Wagoner said.

The final 2007 priority for GM is very clear: continue to
improve business results.

"The rate of improvement in our financials through three
quarters of 2006 was significant, and it needed to be," Mr.
Wagoner said.  "But no one at GM believes that hitting breakeven
in North America, or making a couple of billion in corporate net
income is 'winning.'  We know we need to move to steady revenue
growth, solid earnings, consistent positive cash flow, and a
stronger balance sheet."

"We plan to make another significant step in the right direction
on these metrics in 2007," he said.

                 About General Motors Corp.

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

                        *    *    *

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

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


GRUPO GIGANTE: Market Chain Picks KSS for Price Optimization
------------------------------------------------------------
The Gigante Supermarket chain has selected KSS PriceStrat for
price and promotion optimization.  Gigante operates supermarkets
with four primary store formats:

   -- Gigante,
   -- Bodega Gigante,
   -- Super Gigante and
   -- SuperPrecio.

Gigante will use KSS PriceStrat for both regular and promotional
price modeling, optimization and forecasting.  KSS PriceStrat
provides merchants with a desktop application that accurately
models the impact of pricing and promotional decisions and their
effect on category and cross category sales and profits.

"Price optimization and forecasting are something that will add
tremendous value to our operations," said Alejandro Ahuad,
commercial director of Gigante.  "After investigating several
optimization vendors, we decided KSS PriceStrat will best
provide our merchandising team with the ability to accurately
forecast and evaluate the effects of our pricing and promotional
decisions, before we implement them. This unique insight will
allow us to work more closely with our suppliers to make sure we
are delivering strong value to our consumers while achieving our
company's financial goals."

"Gigante is a true innovator in the grocery market and we are
excited to bring the value of Price Modeling and Optimization to
this organization," said Lance Jacobs, chief executive officer
of the KSS retail division.  "It is very empowering for a
merchant when they can have a view of tomorrow, today.  KSS
PriceStrat will provide their merchandising team with the
ability to propose, forecast, evaluate and refine their pricing
and promotional plans using a fast, intuitive application.  
Gigante strives to deliver exceptional value to their consumers
and we look forward to working with them to support this."

                        About Gigante

With over 600 units in Mexico, Grupo Gigante, S.A. de C.V., is a
public Mexican trade company which operates in the Mexican Stock
Market -- Bolsa Mexicana de Valores.  Through its subsidiaries,
Gigante has developed leading chains of supermarkets, family
restaurants, and specialized commerce, for 43 years.  Its
saubsidiaries include "Gigante", which contains formats
including: "Gigante" (Hypermarkets), "Super Gigante"
(Supermarkets), "Super Maz" and "Bodega" (Warehouses), all of
them supermarket chains, as well as "Cafeterias Toks, S.A. de
C.V.", a specialized family restaurant chain.  With its
partners, Grupo Gigante has also established joint ventures,
developing Office Depot de Mexico, S.A. de C.V., a Mexican
leader chain store of office and school supplies, and Radio
Shack de Mexico, S.A. de C.V., an exclusive format with presence
throughout the Mexican Republic, that offers a wide assortment
of electronic equipment and accessories.

                        *    *    *

As reported in the Troubled Company Reporter on March 29, 2006,
Fitch Ratings has assigned a rating of 'BB' to Grupo Gigante
S.A. de C.V.'s proposed offering of senior notes due 2016 up to
US$250 million.  Proceeds from the offering will be used to
prepay existing debt.  Fitch said the rating outlook is stable.


FORD MOTOR: CEO Alan Mulally Considers Selling Jaguar Brand
-----------------------------------------------------------
Ford Motor Co. CEO Alan Mulally revealed that he might consider
selling the company's Jaguar brand, threatening about 8,000 car
workers' jobs, The Scotsman reports.

The Company launched "Way Forward," a turnaround plan that
includes the sale of Aston Martin, in an effort to stem multi-
billion-pound losses, states The Scotsman.  Ford has explored
strategic options for its Aston Martin sports-car unit in
August, with particular emphasis on a potential sale of all or a
portion of the unit.

"All good businesses continually review their portfolio, and we
will continue to evaluate our portfolio going forward," Mr.
Mulally said.  "I feel more confident now than when I arrived
that we can create a viable Ford."  However, he noted that it
was a "critical time" for the whole car industry.

As reported in the Troubled Company Reporter-Europe on Aug. 30,
Sir Anthony Bamford, JC Bamford Excavators Ltd.'s chairman of
the board, was looking at the possibility of buying the Jaguar
brand from Ford.

However, Mr. Bamford said he has abandoned plans of buying the
Jaguar brand from Ford after executives from Ford Europe and the
Premier Automotive Group, revealed that it has no intentions of
selling the brand at the moment.  According to Mr. Bamford,
cited in the Financial Times, Ford was only interested in
selling the Jaguar brand together with the profitable Land Rover
operations.

JC Bamford is a U.K.-based construction-machinery company.  Mr.
Bamford said that the brand has potential although Jaguar needs
to cut ties with Land Rover for him to consider his plans
further.

Jaguar is part of the Premier Automotive Group -- the
organization under which all of Ford's European brands are
grouped -- which includes other brands like Volvo, Land Rover
and Aston Martin.  In Ford's second quarter results, the segment
incurred a US$180 million net loss.  The Company's management
said the decline in earnings in the PAG segment primarily
reflected unfavorable currency exchange related to the
expiration of favorable hedges, adjustments to warranty accruals
for prior model-year vehicles, mainly at Land Rover and Jaguar,
and lower market share at Volvo associated with new model
changeovers, offset partially by favorable product and market
mix and lower overhead costs.

                      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.


FORD MOTOR: Closing Plants & Cutting Jobs Ahead of Schedule
-----------------------------------------------------------
Ford Motor Co. will be implementing its cost reduction plan,
including plant closures and job cuts, earlier than scheduled,
Reuters reports, citing the company's chief executive officer
Alan Mulally.

The car company, Reuters says, is closing 16 plants and cutting
nearly 45,000 jobs in a bid to return its North American
automotive operations to profits.

According to Mr. Mulally, the plan, which spans a five-year time
frame, intends to reduce the number of vehicle platforms the
company uses around the world and increase the number of shared
parts.

Ford is set to spend US$17 billion cash over the next three
years in restructuring and its automotive operations, Reuters
relates.

                      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.


KANSAS CITY SOUHERN: Declares Dividends on Preferred Stock
----------------------------------------------------------
The executive committee of the board of directors of Kansas City
Southern disclosed the declaration of dividends on three classes
of preferred stock.

The executive committee of the board of directors declared these
dividends:

   -- A cash dividend of US$.25 per share was declared on the
      outstanding 4% Non-Cumulative Preferred stock, payable on
      April 3, 2007, to shareholders of record at the close of
      business on March 12, 2007.

   -- A cash dividend of US$5.4818 per share representing the
      dividend payment originally due May 15, 2006, was declared
      on the outstanding 4.25% Redeemable Cumulative Convertible
      Perpetual Preferred stock, Series C, payable
      Feb. 15, 2007, to shareholders of record at the close of
      business on Feb. 5, 2007.

   -- A cash dividend of US$5.4254 per share representing the
      dividend payment originally due Aug. 15, 2006, was
      declared on the outstanding Series C Preferred Stock,
      payable Feb. 15, 2007, to shareholders of record at the
      close of business on Feb. 5, 2007.

   -- A cash dividend of US$5.3689 per share representing the
      dividend payment originally due Nov. 15, 2006, was
      declared on the outstanding Series C Preferred Stock,
      payable Feb. 15, 2007, to shareholders of record at the
      close of business on Feb. 5, 2007.

   -- A cash dividend of US$5.3125 per share representing the
      dividend payment due Feb. 15, 2007, was declared on the
      outstanding Series C Preferred Stock, payable
      Feb. 15, 2007, to shareholders of record at the close of
      business on Feb. 5, 2007.

   -- A dividend payable in KCS common stock of US$13.3050 per
      share representing the dividend payment originally due
      May 15, 2006, was declared on the outstanding 5-1/8%
      Cumulative Convertible Perpetual Preferred stock, Series
      D, payable Feb. 15, 2007, to stockholders of record at
      the close of business on Feb. 5, 2007.

   -- A dividend payable in KCS common stock of US$13.1408 per
      share representing the dividend payment originally due
      Aug. 15, 2006, was declared on the outstanding Series D
      Preferred Stock, payable Feb. 15, 2007, to stockholders
      of record at the close of business on Feb. 5, 2007.

   -- A dividend payable in KCS common stock of US$12.9767 per
      share representing the dividend payment originally due
      Nov. 15, 2006, was declared on the outstanding Series D
      Preferred Stock, payable Feb. 15, 2007, to stockholders
      of record at the close of business on Feb. 5, 2007.

   -- A dividend payable in KCS common stock of US$12.8125 per
      share representing the dividend payment due Feb. 15, 2007,
      was declared on the outstanding Series D Preferred Stock,
      payable Feb. 15, 2007, to stockholders of record at the
      close of business on Feb. 5, 2007.

The number of shares of KCS common stock payable to the record
holders of the Series D Preferred Stock will be determined in
accordance with the terms of the Certificate of Designations of
the Series D Preferred Stock dated Dec. 9, 2005.

Following payment of the above dividends, all dividend
arrearages on the Series C Preferred Stock and Series D
Preferred Stock will be satisfied.

"KCS' improved operating performance for the first nine months
of 2006, as evidenced by a substantial year-over-year increases
in operating income and EBITDA, allows us to restore dividend
payments at this time," stated Chairman and Chief Executive
Officer Michael R. Haverty.

Headquartered in Kansas City, Mo., KCS is a transportation
holding company that has railroad investments in the US, Mexico
and Panama.  Its primary US holdings include The Kansas City
Southern Railway Co., serving the central and south central US.  
Its international holdings include Kansas City Southern de
Mexico, SA de CV, serving northeastern and central Mexico and
the port cities of Lazaro Cardenas, Tampico and Veracruz, and a
50% interest in Panama Canal Railway Company, providing ocean-
to-ocean freight and passenger service along the Panama Canal.  
KCS' North American rail holdings and strategic alliances are
primary components of a NAFTA Railway system, linking the
commercial and industrial centers of the US, Mexico and Canada.

                        *    *    *

As reported in the Troubled Company Reporter on Nov. 15, 2006,
Standard & Poor's Ratings Services assigned its 'B-' rating to
the US$150 million senior unsecured notes being issued by Kansas
City Southern de Mexico SA de CV (B/Negative/--), the Mexican
subsidiary of Kansas City Southern (B/Negative/--).

Fitch Ratings assigned a 'B+' foreign currency rating and an
'RR4' recovery rating to the US$175 million 7.625% senior notes
due 2013 to be issued by Kansas City Southern de Mexico, SA de
CV.

Fitch also maintains 'B+' foreign currency ratings and 'RR4'
recovery ratings on KCSM's US$178 million 12.50% senior notes
due 2012 and the US$460 million 9.375% senior notes due 2012.


SONIC CORP: Moody's Withdraws Ba3 Corporate Family Rating
---------------------------------------------------------
Moody's Investors Service withdrew its corporate ratings and
outlook on Sonic Corp. following the completion of its
securitized debt financing in December.  The company refinanced
its secured bank facility, consisting of a term loan and
revolver, through a securitization of Franchise and Partner
Drive-In royalties and Partner Drive-In rental streams.  As a
result, Sonic no longer has corporate debt ratings with the
rating agency.  Please refer to Moody's Withdrawal Policy on
moodys.com for further details.

Ratings withdrawn:

   -- Ba3 corporate family rating;

   -- B1 probability of default rating, LGD3-35% loss
      given default assessment;

   -- Ba3 on the US$675 million senior secured term loan
      maturing in 2013;

   -- Ba3 on the $150 million senior secured revolver
      maturing in 2011; and

   -- SGL-2 Speculative Grade Liquidity rating.

Headquartered in Oklahoma City, Oklahoma, Sonic Corp.,
(Nasdaq: SONC) -- http://www.sonicdrivein.com/-- operates and
franchises the largest chain of drive-in restaurants in the
United States.  As of May 31, 2006, the company owned and
operated 604 restaurants and franchised 2,525 restaurants in 33
U.S. States and in Mexico with significant presence in the
Southern and Midwestern United States.


TV AZTECA: To Launch Eight High Definition Films at NATPE
---------------------------------------------------------
TV Azteca SA de CV will launch eight high definition films at
the National Association of Television Program Executives, World
Screen reports.

World Screen relates that the films to be launched include:

          -- Esperanza,
          -- Bodas de Oro,
          -- Milagros,
          -- La Prueba,
          -- La Esperanza de la Navidad,
          -- Lo Que Se Hereda,
          -- No Se Hurta,
          -- Cielo and Quince Anos.

         About the National Association of Television

The National Association of Television Program Executives or
NATPE is a global, non-profit organization dedicated to the
creation, development and distribution of televised programming
in all forms across all mature and emerging media platforms.  

                      About TV Azteca

TV Azteca is one of the two largest producers of Spanish-
language television programming in the world, operating two
national television networks in Mexico -- Azteca 13 and Azteca 7
-- through more than 300 owned and operated stations across the
country.  TV Azteca affiliates include Azteca America Network, a
new broadcast television network focused on the rapidly growing
US Hispanic market, and Todito, an Internet portal for North
American Spanish speakers.

                        *    *    *

Moody's Investor Services rated TV Azteca's senior unsecured
debt at B1.


WERNER LADDER: Court Okays Mercer as Human Resources Consultant
---------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware gave
Werner Holding Co. (DE) Inc., aka Werner Ladder Company, and its
debtor-affiliates permission to employ Mercer Human Resources
Consulting Inc., in connection with the review of their
compensation and benefits program in their Chapter 11 cases,
nunc pro tunc to Aug. 10, 2006.

Specifically, Mercer will:

   (a) conduct a review of the Debtors' existing compensation
       and benefits programs and assist the Debtors in
       developing revised programs;

   (b) provide expert testimony, to the extent necessary, with
       regard to compensation benefits matters;

   (c) provide other services as agreed upon by the Debtors
       and Mercer.

Mercer will be paid on an hourly basis.  The rates charged by
Mercer's personnel range from US$150 to US$700 per hour.

Mercer will also seek reimbursement for reasonable travel and
out-of-pocket expenses that originate with outside vendors and
legal counsel retained by Mercer.

The Debtors will indemnify Mercer from any litigation costs
associated with actual or threatened actions, proceedings or
investigations relating to or arising out of its services
provided to the Debtors, except for the firm's gross negligence,
bad faith or willful misconduct.

As reported in the Troubled Company Reporter on Oct. 3, 2006,
Robert S. Brady, Esq., at Young Conaway Stargatt & Taylor, LLP,
asserted that one of the most critical elements of the Debtors'
ability to successfully reorganize is a proper incentive program
for their employees.

With Mercer's assistance, the Debtors will be able to conform
their compensation programs to current market trends and thereby
develop an appropriate program at a reasonable cost, Mr. Brady
said.  He noted that the Debtors have filed two motions to
continue their employee compensation programs.  After extensive
discovery and two hearings, the Debtors only were able to obtain
partial relief on their request to make payments under their
Business Optimization Bonus plan.

The Debtors believe that it is important to hire Mercer in order
to:

   (a) evaluate, develop, and revise compensation and benefits
       programs designed to meet market standards and the
       Debtors' important goal of adequately compensating
       employees;

   (b) enable them to inform parties-in-interest, including the
       Creditors Committee, of market comparables; and

   (c) provide evidence to the Court, if necessary, as to the
       reasonableness of any program.

John Dempsey, a principal with Mercer, assured the Court that
the firm is a "disinterested person" pursuant to Sections
101(14) and 1107(b) of the Bankruptcy Code.

Based 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 Debtors are represented by the firm of
Willkie Farr & Gallagher LLP as lead counsel and the firm of
Young, Conaway, Stargatt & Taylor LLP as co-counsel.  Rothschild
Inc. is the Debtors' financial advisor.  The Official Committee
of Unsecured Creditors is represented by the firm of Winston &
Strawn LLP as lead counsel and the firm of Greenberg Traurig LLP
as co-counsel.  Jefferies & Company serves as the Creditor
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.  The Debtors's exclusive period to file a plan
expires on Jan. 15, 2007.  (Werner Ladder Bankruptcy News, Issue
No. 16; Bankruptcy Creditors' Service Inc.
http://bankrupt.com/newsstand/or 215/945-7000)


* MEXICO: Discloses Results of Dutch Auction for Old Bonds
----------------------------------------------------------
The United Mexican States or Mexico disclosed the results of its
invitation to owners of Old Bonds to submit, in a modified Dutch
auction for each series of Old Bonds, offers to exchange Old
Bonds for 6.75% Global Notes due 2034 and a U.S. dollar amount
of cash, and offers to sell Old Bonds for a U.S. dollar amount
of cash.  

Following the Invitation and the expected cancellation of the
Old Bonds tendered and accepted for exchange or purchase by
Mexico, approximately:

   -- US$1,702,747,000 principal amount of 8.125% Global Bonds
      due 2019,

   -- US$753,456,000 principal amount of 8.00% Global Notes due
      2022,

   -- US$338,715,000 principal amount of 11.50% Global Bonds due
      May 15, 2026,

   -- US$1,877,818,000 principal amount of 8.30% Global Notes
      due 2031 and

   -- US$1,315,882,000 principal amount of 7.500% Global Notes
      due 2033

are expected to remain outstanding.

Pursuant to the Invitation, Mexico expects to issue
approximately US$2,267,305,000 aggregate principal amount of
Reopened Notes and pay approximately US$1,057,411,587 of cash
(including Cash Payments pursuant to offers to exchange Old
Bonds for 2031 Notes and 2033 Notes, cash used to purchase Old
Bonds pursuant to offers to sell Old Bonds for cash and cash
payments in respect of rounded amounts) in consideration for
approximately US$2,796,977,000 aggregate principal amount of Old
Bonds, comprised of:

                      Principal Amount
                        of Old Bonds           Principal Amount
Series of               Exchanged for            of Old Bonds
Old Bonds              Reopened Notes         Purchased for Cash

2019 Bonds            U.S. $248,716,000        U.S. $73,971,000
2022 Notes            U.S. $268,472,000        U.S. $27,265,000
2026 Bonds            U.S. $152,857,000        U.S. $42,092,000
2031 Notes            U.S. $684,703,000        U.S. $128,905,000
2033 Notes           U.S. $1,037,112,000       U.S. $132,884,000

For each series of Old Bonds delivered and accepted for exchange
pursuant to offers to exchange Old Bonds for Reopened Notes,
Mexico will issue approximately these principal amount of
Reopened Notes and will make approximately the following Cash
Payment:

                           Principal Amount
                           of Reopened Notes
Series of Old Bonds      to Be Issued in Exchange   Cash Payment

2019 Bonds                 U.S. $278,549,000        U.S. $0.00
2022 Notes                 U.S. $305,495,000        U.S. $0.00
2026 Bonds                 U.S. $229,619,000        U.S. $0.00
2031 Notes                 U.S. $671,677,000   U.S. $164,328,720
2033 Notes                 U.S. $781,965,000   U.S. $383,731,440

Mexico will not make any payments in respect of any accrued and
unpaid interest on Old Bonds accepted for exchange.  Holders of
Old Bonds who exchange their Old Bonds for Reopened Notes will
not be required to pay an amount equal to the interest accrued
since the last interest payment date of the Reopened Notes
issued to exchanging holders.  These amounts have been
incorporated into and form part of the calculation of the
Exchange Ratios, which will affect the principal amount of
Reopened Notes issued to such exchanging holders.

Application has been made to list the Reopened Notes on the
Luxembourg Stock Exchange and to admit the Reopened Notes for
trading on the regulated market of the Luxembourg Stock
Exchange.  The Reopened Notes will be consolidated and form a
single series with, and be fully fungible with, the outstanding
US$1,500,000,000 6.75% Global Notes due 2034 (CUSIP No.
91086QAS7, ISIN US91086QAS75, Common Code 020218118).

In determining which offers to accept pursuant to the
Invitation, Mexico set the Clearing Spread Differential for each
series of Old Bonds as follows:

                    Clearing Spread
                 Diff'l for Old Bonds     Clearing Spread Diff'l
Series of        Accepted for Exchange    for Old Bonds Accepted
Old Bonds          (basis points)         for  Purchase (bp)

2019 Bonds               47                        51
2022 Notes               33                        37
2026 Bonds               17                        12
2031 Notes               10                         7
2033 Notes                6                         9

With respect to offers to exchange Old Bonds for Reopened Notes,
Mexico disclosed for each series of Old Bonds that it will
accept all non-competitive offers to exchange Old Bonds and all
competitive offers submitted at Offer Spread Differentials less
than or equal to the applicable Clearing Spread Differentials
set in the table.

With respect to offers to sell Old Bonds for cash, Mexico
disclosed for each series of Old Bonds that it will accept all
non-competitive offers to sell Old Bonds for cash and all
competitive offers submitted at Offer Spread Differentials less
than or equal to the applicable Clearing Spread Differentials
set forth in the table above.

Mexico disclosed that the UST Benchmark Rate for the Invitation
is 4.861%, and that the Reopened Notes Issue Spread is 141 basis
points. As a result, the Reopened Notes Issue Price is
US$1,062.43 and the Reopened Notes Exchange Value is
US$1,085.30.

The applicable Old Bond Price, Old Bond Exchange Value and
Exchange Ratio for each series of Old Bonds accepted by Mexico
in exchange for Reopened Notes are as set in the table below:

                Old Bond
Series of       Price for           Old Bond
Old Bonds        Exchange        Exchange Value   Exchange Ratio

2019 Bonds    U.S. $1,209.17     U.S. $1,215.72    1.120164
2022 Notes    U.S. $1,207.83     U.S. $1,235.61    1.138496
2026 Bonds    U.S. $1,607.19     U.S. $1,630.83    1.502650
2031 Notes    U.S. $1,267.33     U.S. $1,065.14    0.981425
2033 Notes    U.S. $1,165.58     U.S. $818.71      0.754360

For each US$1,000 principal amount of Old Bonds delivered and
accepted for purchase pursuant to offers to sell Old Bonds for
cash, Mexico will pay these Purchase Price for each series of
Old Bonds:

        Series of Old Bonds     Purchase Price

        2019 Bonds              U.S. $1,213.26
        2022 Notes              U.S. $1,212.44
        2026 Bonds              U.S. $1,599.21
        2031 Notes              U.S. $1,262.83
        2033 Notes              U.S. $1,169.93

Mexico will also pay an aggregate of approximately US$10,183,503
to holders whose Old Bonds have been delivered and accepted for
purchase pursuant to offers to sell Old Bonds for cash in
respect of accrued interest on the Old Bonds during the period
from and including the most recent interest payment date up to
but excluding the settlement date.

Further information is provided in the Invitation, which may be
downloaded from the Invitation Website at
http//:www.bondcom.com/ums, or obtained from the information
agent at:

          Bondholder Communications Group
          Attention: Monique Santos
          New York, 30 Broad Street
          46th floor, New York, NY 10004
          Tel. +1 212 809 2663
          E-mail: msantos@bondcom.com

                   -- or --

          Bondholder Communications Group
          London, 28 Throgmorton Street
          London EC2N 2AN
          Tel. +44 20 7382 4580

Or form the dealer managers:

          Barclays Capital Inc.
          Attn: Liability Management Group
          200 Park Avenue
          New York, New York 10166
          Tel: (866) 307 8991 (US toll-free)
               +1 212 412 4072 (outside US, collect)
               +44 20 7773 5484 (London)

          Morgan Stanley & Co. Incorporated
          Attn: Liability Management Group
          1585 Broadway
          New York, New York 10036
          Tel: (800) 624 1808 (US toll-free)
               +1 212 761 1864 (outside US, collect)

The invitation supplement, the prospectus supplement and the
prospectus comprising the Invitation is available from the SEC's
website at htt://www.sec.gov/

                        *    *    *

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


* MEXICO: Discloses UST Benchmark Rate for Dutch Auction
--------------------------------------------------------
The United Mexican States or Mexico disclosed the UST Benchmark
Rate in connection with its invitation to owners of Old Bonds to
submit, in a modified Dutch auction for each series of Old
Bonds, offers to exchange Old Bonds for 6.75% Global Notes due
2034 and a U.S. dollar amount of cash, and offers to sell Old
Bonds for a U.S. dollar amount of cash.

The UST Benchmark Rate for the Invitation is 4.861%.

Mexico has disclosed that the Reopened Notes Issue Spread has
been set at 141 basis points, and that the Minimum Clearing
Spread Differential for each series of Old Bonds is as set in
the table below:

    Series of Bonds: 8.125% Global Bonds Due 2019
    Outstanding Principal Amount: US$2,025,434,000
    ISIN: US593048BN00
    Maturity Date: 12/30/2019
    Cash Payment on Exchange: US$0.00
    Minimum Clearing Spread Differential (basis points): 47

    Series of Bonds: 8.00% Global Bonds Due 2022
    Outstanding Principal Amount: US$1,049,193,000
    ISIN: US91086QAJ76
    Maturity Date: 9/24/2022
    Cash Payment on Exchange: US$0.00
    Minimum Clearing Spread Differential (basis points): 33

    Series of Bonds: 11.50% Global Bonds Due 2026
    Outstanding Principal Amount: US$533,664,000
    ISIN: US593048AX90
    Maturity Date: 5/15/2026
    Cash Payment on Exchange: US$0.00
    Minimum Clearing Spread Differential (basis points): 9

    Series of Bonds: 8.30%Global Bonds Due 2031
    Outstanding Principal Amount: US$2,691,426,000
    ISIN: US91086QAG38
    Maturity Date: 8/15/2031
    Cash Payment on Exchange: US$240.00
    Minimum Clearing Spread Differential (basis points): 7

    Series of Bonds: 7.500% Global Bonds Due 2033
    Outstanding Principal Amount: US$2,485,878,000
    ISIN: US91086QAN88
    Maturity Date: 4/8/2033
    Cash Payment on Exchange: US$370.00
    Minimum Clearing Spread Differential (basis points): 6

At or around 11:00 a.m. on Jan. 12, New York City time, Mexico
dicsloed whether it will accept any offers to exchange or sell
for cash any series of Old Bonds, and, if so, the Reopened Notes
Issue Price, the Reopened Notes Exchange Value and the
applicable Clearing Spread Differential, Old Bond Price, Old
Bond Exchange Value, Exchange Ratio, Purchase Price and
proration factor, if any, for each series of Old Bonds accepted
for exchange or purchase.

Further information is provided in the Invitation, which may be
downloaded from the Invitation Website at
http//:www.bondcom.com/ums, or obtained from the information
agent at:

          Bondholder Communications Group
          Attention: Monique Santos
          New York, 30 Broad Street
          46th floor, New York, NY 10004
          Tel. +1 212 809 2663
          E-mail: msantos@bondcom.com

                   -- or --

          Bondholder Communications Group
          London, 28 Throgmorton Street
          London EC2N 2AN
          Tel. +44 20 7382 4580

Or from the dealer managers:

          Barclays Capital Inc.
          Attn: Liability Management Group
          200 Park Avenue
          New York, New York 10166
          Tel: (866) 307 8991 (US toll-free)
               +1 212 412 4072 (outside US, collect)
               +44 20 7773 5484 (London)

          Morgan Stanley & Co. Incorporated
          Attn: Liability Management Group
          1585 Broadway
          New York, New York 10036
          Tel: (800) 624 1808 (US toll-free)
               +1 212 761 1864 (outside US, collect)

The invitation supplement, the prospectus supplement and the
prospectus comprising the Invitation is available from the SEC's
website at htt://www.sec.gov/

                        *    *    *

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


* MEXICO: Repurchases US$2.8 Bil. in Bonds with Cash & New Debts
----------------------------------------------------------------
The Mexican government buys back US$2.8 billion of dollar-
denominated bonds using cash and longer-term securities,
Bloomberg News reports.

According to the same report, Mexico's new bonds will become due
in 2034, with a 6.27% yield.  The debts repurchased were due in
2019, 2022, 2026, 2031 and 2033.

In addition, the government has bought back US$405 million of
shorter-term dollar bonds with cash.

"We want to improve Mexico's external debt profile by developing
a curve that is more efficient," Gerardo Rodriguez, director of
public credit at the Finance Ministry, said in an interview with
Bloomberg.  "At the same time, Mexico will continue scaling back
external debt outstanding and meet its funding needs in the
local market."

                        *    *    *

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




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


PETROLEOS DE VENEZUELA: Makes Third Fuel Shipment to Nicaragua
--------------------------------------------------------------
Petroleos de Venezuela SA, the state-run oil company of
Venezuela, said in a statement that it has made its third fuel
shipment to Nicaragua's Corinto port, as part of the Petrocaribe
energy cooperation program.

Corinto is in Chinandega department, about 160 kilometers from
Managua, Nicaragua.

Business News Americas relates that trucks will distribute the
15,000 barrels of diesel to 30 public transport cooperatives in
Managua.  The diesel will supply 800 buses and benefit 800,000
passengers daily.

According to BNamericas, Petroleos de Venezuela made its first
delivery of 1,800 barrels of diesel in October 2006.  It was
followed by a second shipment of 16,000 barrels in November
2006.

BNamericas notes that the next fuel shipments will go to the
power sector to help alleviate energy crisis in Nicaragua.

Nicaraguan municipal governments' association Amunic and
Petroleos de Venezuela formed Albanic to distribute the crude
and fuels in Nicaragua.  Albanic can buy 10 million barrels per
year of hydrocarbons under the same special conditions allowed
Petrocaribe members, BNamericas states.

Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad.  The company has a commercial office in China.

                        *    *    *

Standard & Poor's said on July 17 that it may lower the
company's B+ foreign-currency debt rating in part because of the
absence of timely financial and operating information.




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


BANCO GENERAL: Focusing on Closing Merger with Continental
----------------------------------------------------------
A Banco General executive told MarketWatch that the bank will
concentrate on completing its merger with BBVA Banco Continental
this year before looking at other growth opportunities in
Central America.

As reported in the Troubled Company Reporter-Latin America on
Jan. 8, 2007, Banco General would absorb Banco Continental.  The
merger would follow the union of Banco Continental parent Grupo
Financiero and Empresa General de Inversiones, the parent firm
of Banco General, into a new holding firm called BG Financial
Group.  BG Financial Group would be the parent of merged bank
Banco General, which would report:

          -- US$7.00 billion in assets,
          -- loan book of US$4.50 billion, and
          -- equity of US$800 million.

Raul Aleman, Banco General's chief executive and executive vice
president, explained to MarketWatch, "In the first year our view
is to consolidate the businesses, and then in the second and
third years we are going to see what opportunities there are at
that time."

Mr. Aleman commented to MarketWatch, "We will have a bank that
already has a very interesting presence in different countries
in the region, which we are going to continue to promote the
same way Banco Continental has been doing."

MarketWatch underscores that Banco Continental has offices in:

          -- Mexico,
          -- Guatemala,
          -- Nicaragua,
          -- Costa Rica,
          -- El Salvador, and
          -- Colombia.

The merged bank will have the capital to increase its regional
presence, MarketWatch notes.  The merger is subject to
regulatory approval.

According to MarketWatch, Mr. Aleman expects that the new Banco
General will be able to play a bigger role in local
transportation, energy and tourism projects.

"The canal expansion (Panama Canal) is definitely going to bring
us a lot of opportunities, not necessarily in terms of direct
credit to the Panama Canal Authority, rather to its service
providers," Mr. Aleman told MarketWatch.

                   About Banco Continental

Headquartered in Lima, Peru, BBVA Banco Continental --
http://www.bbvabancocontinental.com-- is the second largest  
commercial bank in Peru.  As of September 2006, had total loans
of US$3.6 billion and total deposits of US$4.1 billion.  It has
built an extensive network throughout the country with 215
branches, 342 ATMs and 2,868 employees.

                     About Banco General

Banco General is Panama's second largest private commercial bank
in terms of assets and deposits, with a domestic deposit market
share of 16.4% at June 2006.  Originally established as a
savings and loans institution in 1955 and historically focused
on mortgage lending, a few acquisitions and organic growth have
aided to diversify into commercial and consumer lending.  Banco
General is owned by Empresa General de Inversiones, a
Panamanian publicly traded company (end-2005 equity: US$515
million) with additional interests in fuel distribution and
plastic container manufacturing.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Oct. 31, 2006, Fitch Ratings has affirmed the ratings assigned
to Panama's Banco General and its subsidiaries as:

   -- Foreign currency long-term Issuer Default rating at 'BBB';
   -- Foreign currency short-term rating at 'F3';
   -- Individual rating at 'C'; and
   -- Support rating at '5'.

Fitch said the rating outlook is stable.


CLIENTLOGIC CORP: SITEL Shareholders Approve Proposed Merger
------------------------------------------------------------
ClientLogic Corp. and SITEL Corp. disclosed that at SITEL's 2006
Annual Meeting, held on Jan. 13, the company's shareholders
voted to approve the proposed merger with ClientLogic.  More
than 71.9 million, or approximately 96%, of SITEL's outstanding
common shares were voted at the meeting, with more than 97% of
voted shares voting in favor of the merger.  The merger is
expected to close in late January 2007 or early February 2007.  
The U.S. Federal Trade Commission, the European Commission and
the Canadian Commissioner of Competition have cleared the
merger.  Under the terms of the merger agreement approved by
SITEL shareholders, SITEL shareholders will receive US$4.25 per
share in cash.

Jim Lynch, Founder, Chairman and CEO of SITEL Corporation,
stated, "We're extremely pleased to see that our shareholders
recognize the significant value created from the merger with
ClientLogic.  I am also happy that our loyal employees have an
opportunity to join a combined company that will be a leader in
our industry for years to come.  I thank our shareholders,
clients, and employees for their years of support and
dedication."

Dave Garner, CEO and President of ClientLogic, commented, "We
look forward to the completion of the deal and the ability to
combine these two excellent companies, creating the industry
leader.  Our continued focus will be to ensure that we deliver
the utmost benefit to our valued clients, associates, and other
stakeholders."

At the annual meeting, SITEL's shareholders also voted to re-
elect current directors Rohit Desai, David Hanger and Stephen
Key as Class II directors to serve on SITEL's Board of Directors
until the closing of the merger.

                     About ClientLogic

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

                        *    *    *

As reported in the Troubled Company Reporter on Jan. 9, 2007,
Moody's Investors Service upgraded ClientLogic Corp.'s corporate
family rating to B2 from B3.  Moody's said 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.


CLIENTLOGIC CORP: S&P Lifts Corporate Credit Rating to B+ from B
----------------------------------------------------------------
Standard & Poor's Rating Services upgraded its corporate credit
rating on Nashville, Tenn.-based ClientLogic Corp. to 'B+' from
'B', and removed the ratings from CreditWatch with positive
implications where they were placed on Oct. 20, 2006.  The
outlook is stable.

At the same time, we assigned a 'B+' rating, the same as the
corporate credit rating, and a recovery rating of '2' to the
company's proposed first lien loan of US$760 million (a term B
loan of US$675 million and a revolving credit facility of US$85
million).  The '2' recovery rating on the first lien indicates
expectations for substantial recovery (80% to 100%) of principal
in the event of a payment default.  Proceeds of the US$675
million term loan, in conjunction with US$57 million in equity
roll over, will be used to fund the acquisition of SITEL and to
refinance ClientLogic's existing debt.

"The ratings reflect ClientLogic's uneven performance operating
in a niche oriented and very competitive market, the risk of a
lengthy integration process, as well as high leverage," said
Standard & Poor's credit analyst Stephanie Crane Mergenthaler.  
These factors somewhat are offset by increased scale as a result
of the SITEL acquisition, and a diversified blue-chip customer
list and global end markets.

ClientLogic provides outsourced customer-care and fulfillment
services, through its customer contact centers and distribution
warehouses located across the globe.  Many of these services
help ClientLogic's customers manage call volume and customer
service issues through call centers.  SITEL, whose revenue
reached US$1 billion in 2005, is a close competitor to
ClientLogic in the customer care industry.  The union of these
two companies should significantly increase market share and
scale, as sales are more than two times, placing the combined
company in second place within the customer care outsourcing
market.  The acquisition will also create a much more
diversified customer base across a wide assortment of end
markets with a global footprint.

                     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.


SOLO CUP: Fitch Assigns B- Issuer Default Rating
------------------------------------------------
Fitch Ratings has initiated these ratings for Solo Cup Co.:

   -- Issuer default rating 'B-';

   -- Senior secured first lien credit facility 'B+/Recovery
      Rating (RR) 2';

   -- Senior secured second lien credit facility 'CCC+/RR5';
      and

   -- Senior subordinated notes 'CCC/RR6'

The Rating Outlook is Negative.  Approximately US$1.2 billion of
debt is covered by the ratings.  The company's Canadian bank
debt is excluded from the ratings.

The ratings reflect Fitch's concern about the company's negative
operating and free cash flow, high leverage, a lengthy and
difficult integration process associated with the SF Holdings
acquisition, margin contraction due to higher resin and energy
prices, material weaknesses in internal accounting controls, low
unit volume growth, and management turnover in the past year.  
The ratings also recognize Solo's leading market share across
its product categories, strong brand equity, modest near-term
debt maturities, diversified product mix, and stable customer
base.  The ratings also reflect Solo's increased focus on cost
reduction and the possibility of asset sales, the proceeds from
which would be used to reduce debt.

The Negative Outlook is based on constrained operating cash flow
generation and declining operating margins.  Inability by Solo
to generate cash in the next year as a result of performance
improvement or asset sales would likely lead to a review of the
ratings for a possible downgrade.

The Recovery Ratings and notching in the debt structure reflect
Fitch's recovery expectations under a scenario in which
distressed enterprise value is allocated to each debt class.  
The recovery rating for Solo's senior secured first lien credit
facility, consisting of a revolving credit facility and term
loan ('RR2'; expected 71%-90% recovery) reflect superior
expected recovery given the security from substantially all
assets.  With most of the estimated distressed enterprise value
being distributed to the first lien senior secured creditors,
Fitch estimates that recoveries for second lien creditors and
8.50% senior subordinated noteholders would be significantly
impaired.  The recovery rating for the second lien credit
facility ('RR5'; expected 11%-30% recovery) reflects the
secondary claim to assets and the allocation of concession
payments to improve recovery. The recovery on the subordinated
notes ('RR6; expected 0%-10% recovery) would likely be poor in a
reorganization given the lack of security, contractual
subordination and limited, if any, enterprise value remaining to
distribute.

Solo is a market-leading foodservice disposables manufacturer
that has recently endured several business challenges.  An
unusually adverse operating environment and a difficult merger
integration have combined to pose serious challenges to the
company over the past two years.  Raw materials and energy
prices have shown unprecedented increases, creating an inflated
cost structure and lower profitability.  The merger with
Sweetheart has been costly and delayed, with most expected
synergies not yet realized.  In some respects the two companies
have continued to operate as distinct entities, even two years
post-acquisition.  With this backdrop, the company has also had
turnover in several key management positions during the past
year.

Given Solo's difficult, although improving, operating
environment and growing competitive pressures, the company's
ability to maintain market share without increased investment in
R&D is a concern.  Fitch believes that the company's debt burden
may be limiting its ability to invest in innovative, higher
margin products.  Competitors have been able to leverage their
brands into certain Solo Cup product areas, and have taken
advantage of lower cost resins to produce similar products at
lower prices in some cases.  Along with pricing pressure from
low-cost foreign producers, this has lead to volume losses and
constrained cash flows over the past year.

Weak cash flows and tightening liquidity forced the company to
arrange second lien financing twice in 2006; first with an US$80
million term loan in March, then an additional US$50 million
under the same facility acquired in December to pay down the
first lien revolver and improve liquidity.  Management has
acknowledged the need for immediate action to improve the
company's performance.  Workforce reductions, cost savings
initiatives, and sale-leaseback transactions are being
contemplated or are already under way.  The company is working
with external advisors to explore the possible sale of certain
non-core assets or business lines.  In connection with the
December financing arrangements, the credit facility covenants
were modified to allow for the sale of up to 20% of consolidated
assets in 2007, with proceeds used to pay down debt.  Fitch is
also encouraged by the appointment of four new board members,
including a new chairman by Vestar Capital Partners, the
company's minority equity investor.  AlixPartners, a
consultancy, has also been engaged to implement a performance
improvement program.

Fitch calculates LTM Oct. 1, 2006, operating EBITDA of $147.5
million and total leverage of 7.8x.  Interest coverage for the
same period was 1.7x.  Although the company has implemented
price increases in response to higher raw materials costs,
competitive pressures and overall higher freight and other costs
will likely prove to be an ongoing challenge which will require
structural changes in the business.  Asset divestitures will
likely be needed to bring the company into compliance with
leverage ratio covenant requirements that start at 9.75x and
decline every three months this year to 7.25x by Dec. 31, 2007.  
Fitch believes the company will likely be able to comply with
leverage ratio requirements in 2007, assuming sufficient asset
sales are executed.  The fundamental trend should improve
somewhat in 2007, given cost management initiatives, completion
of the new order management system, and moderating raw materials
and energy prices.

As of Oct. 1, 2006, the company had about $49 million of
availability under the revolver and cash of US$22 million for
total liquidity of roughly US$71 million.  Considering the
additional US$50 million of second-lien financing, Fitch
estimates current liquidity of about US$121 million.  Near term
debt maturities are not significant with US$6.5 million due in
both 2007 and 2008.  Capital expenditures are expected to be
US$55 to US$60 million in the coming year. The amended credit
agreement of Dec. 22, 2006, stipulates that all management fees
to Vestar will be suspended in 2007, unless the consolidated
leverage ratio is equal to or less than 4.5x.

Solo's credit profile could improve in 2007 if significant cost
savings or de-leveraging occurs.  The company has outlined an
aggressive agenda to rationalize costs, maximize cash flows, and
change corporate culture.  Significant asset sales or other
divestitures could materially improve leverage.  The company's
new technology system is scheduled to come online in the first
quarter, which could significantly improve order management,
reduce redundancies stemming from the merger, and lead to
improved profitability.  Fitch believes the rationale for the
Sweetheart merger remains mostly intact.  There is ample scope
for operational improvement such as asset utilization and
productivity and better product line management.  Many of the
originally anticipated synergies could yet be realized
accordingly.

Headquartered in Highland Park, Illinois, Solo Cup Company --
http://www.solocup.com/-- manufactures disposable paper and
plastic food and beverage containers used in the foodservice and
retail consumer markets.  Products include cups, lids, straws,
napkins, cutlery, and plates.  The Company was established in
1936 and has a global presence with facilities in Asia, Canada,
Europe, Mexico, Panama and the United States.




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


ADELPHIA COMMS: Effective Date of Plan Extended Until Friday
------------------------------------------------------------
Adelphia Communications Corp. has been informed by the Official
Committee of Unsecured Creditors that the Settlement Parties
have extended the deadline for the Effective Date contained in
Section 12.2(c) of the First Modified Fifth Amended Joint
Chapter 11 Plan of Reorganization from Jan. 12 to Jan. 19.

As reported in the Troubled Company Reporter on Jan 9, 2007
the Honorable Robert E. Gerber of the U.S. Bankruptcy Court for
the Southern District of New York confirmed the first modified
fifth amended joint Chapter 11 plan of reorganization of
Adelphia Communications Corp. and Certain Affiliated Debtors.

Under the Federal Rules of Bankruptcy Procedure, the order was
subject to a stay pending appeal, which would expire on
Jan. 16, 2007.  If no additional stay is issued, the ACOM
Debtors expected the Plan to become effective on Jan. 17, 2007.

The occurrence of the Effective Date of the Plan is subject to
conditions, many of which are outside the control of Adelphia.  
There can be no assurance whether or when the Effective Date
will occur.

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

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


DAVID'S BRIDAL: Moody's Assigns B2 Corporate Family Rating
----------------------------------------------------------
Moody's Investors Service assigned first time ratings to David's
Bridal, Inc., including a corporate family rating of B2 and a
senior secured term loan rating of B2.  The rating outlook is
stable.  The ratings are conditioned upon review of final
documentation.

These ratings are assigned:

   -- Corporate family rating at B2;
   -- Probability-of-default rating at B2; and
   -- US$315 million senior secured term loan at B2.

David's Bridal along with Priscilla's of Boston is being sold by
Federated Department Stores to Leonard Green & Partners for
approximately US$750 million. The acquisition will be financed
with the proceeds of the proposed US$315 million term loan along
with an unrated privately placed subordinated notes offering,
and an equity contribution by Leonard Green.

The B2 corporate family rating of David's Bridal reflects post-
transaction credit metrics that will be weak, particularly the
very high leverage and low cash flow coverage.  The B2 rating is
further supported by the company's high seasonality, small scale
with top line revenues for the LTM period ended Sept. 30, 2006,
of US$623 million, and its shareholder friendly financial
policies.  

Offsetting these high yield characteristics are several
investment grade characteristics including:

   -- its national diversification;

   -- leading position in the very defined bridal sub-sector
      of retail; and

   -- profitability that is in line with its apparel retailing
      peer group, and its consistent comparable store
      sales growth.

The stable outlook reflects Moody's expectation that the company
will continue to reasonably grow comparable store revenues,
improve operating margins, and maintain moderately positive free
cash flow and adequate liquidity.  Given the magnitude of
David's Bridal post-transaction leverage, an upgrade is unlikely
in the intermediate term.  Over the longer term, an upgrade
would require continuing solid operating performance coupled
with Debt/EBITDA being sustained below 6.0x and FCF/Debt above
5% on a sustainable basis.

Conversely, negative rating pressure would develop if:

   -- operating performance is weaker than expected;
   -- liquidity erodes; or
   -- if overall comparable store sales were to become negative.

Quantitatively, ratings would be lowered should, as calculated
using Moody's standard adjustments, Debt/EBITDA rise above 7.5x,
EBITA/IE fall below 1.0x, or if FCF/Debt remains negative.

The US$315 million senior secured term loan is rated at the
corporate family rating reflecting its weak collateral package,
as all the accounts receivable and inventory will be pledged to
the asset based revolving credit facility, its lack of
meaningful financial covenants, and its size and scale relative
to the whole capital structure.  The senior secured term loan
will be secured by all of the assets of the company, excluding
accounts receivable and inventory.  However, given the lack of
sizable tangible assets excluding accounts receivable and
inventory, the term loan is in essence secured by goodwill.  The
term loan will also be guaranteed by Priscilla's of Boston and
DBP Holding Corp.

David's Bridal, Inc., headquartered in Conshohocken, PA, is the
leading national bridal specialty retailer with an estimated 30%
market share for bridal gowns in 2006.  The company operates 281
stores in 46 states and 2 stores in Puerto Rico.  Revenues for
the LTM period ended Sept. 30, 2006, were US$623 million.


DAVID'S BRIDAL: S&P Assigns B Corporate Credit Rating
-----------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' corporate
credit rating on Conshohocken, Pa.-based David's Bridal Inc.  
The outlook is stable.

Standard & Poor's also assigned a 'B' rating to the company's
planned US$315 million term loan B due 2014. This rating and the
'3' recovery rating indicate Standard & Poor's expectation for a
meaningful (50%-80%) recovery of principal in the event of
payment default.

"The ratings reflect David's Bridal's participation in the
highly competitive and fragmented bridal specialty retail
market, and high pro forma leverage of about 6.8x," said
Standard & Poor's credit analyst Jackie Oberoi.

David's Bridal, the nation's largest bridal specialty retailer,
operated 273 David's Bridal stores and 10 Priscilla of Boston
stores as of December 2006.  David's Bridal participates in the
stable wedding industry, which is estimated at about US$47
billion in annual sales. The industry is relatively mature, with
expected growth of about 1% to 2% annually over the next several
years.  A highly fragmented group of retailers serves the
wedding industry, with about 95% of the market comprised of
independent retailers.  David's Bridal is the U.S.'s only
national retailer in this industry, with about eight times more
stores than its next largest competitor, and operates in 46 U.S.
states and Puerto Rico.


DORAL FINANCIAL: Shareholders May Face Dilution, Analysts Say
-------------------------------------------------------------
Due to Doral Financial Corp.'s financial predicaments, there
could be a significant dilution for existing common shareholders
and reduction of bondholders, Business News Americas reports,
citing analysts.

Sterne Agee analyst Thomas Monaco told BNamericas, "Common
shareholders could potentially be diluted 34.8-81.7%, reducing
book value per share US$0.47-2.37."

BNamericas relates that stockholder equity hit US$1.03 billion
as of Sept. 30, 2006, with book value increasing to US$4.22 per
share.

Mr. Monaco told BNamericas that on a stated book basis, a debt-
to-equity conversion would result, on a one-for-one basis, in
the debt holders owning 49.2% of the common stock.  On an
adjusted book basis, a debt-to-equity conversion would amount to
the debt holders owning 80.2% of Doral's common shares.

Anthony Polini, an analyst with Soleil Securities, commented to
BNamericas, "I wouldn't be surprised if bondholders ended up
owning more than 50% of Doral."

Doral Financial's most urgent challenge is finding a way to
refinance US$625 million of floating rate notes that mature in
July, BNamericas notes.

The report says that while analysts think that a private equity
transaction could be a cheaper way of providing enough capital
to keep Doral Financial operating, the move is likely to result
in substantial shareholder dilution.

Joseph Gladue, an analyst with Cohen Bros, told BNamericas, "My
guess is that the company will be able to refund the debt, but
at a very steep cost to existing shareholders.  The refunding
could dilute existing shareholders 35-70%."

BNamericas underscores that Doral Financial's Chief Executive
Officer Glen Wakeman said in a conference in October 2006 that
his number one priority would be refinancing the notes with
high-yield debt, asset disposals and an equity increase.

Mr. Monaco told BNamericas, "The most plausible solution, in our
view, is a combination of asset disposal and raising equity,
provided Wakeman can convince bondholders that there is a viable
plan to restore Doral to financial health.  Doral does have the
ability to dispose of several assets: Doral Bank, FSB -- the New
York thrift -- the US$15.0bn servicing portfolio and its
headquarters in a sale-leaseback transaction.  We calculate all
three sales could make a modest dent in the overall floating
rate notes."

Omotayo Okusanya, a banking analyst with UBS Securities, said in
a report, "We would expect private equity investors to implement
an aggressive turnaround plan, protect their downside and
significantly dilute current shareholders, given current equity
is likely to be worthless if Doral goes bankrupt."

BNamericas underscores that due to Doral Financial's desperation
and unwillingness of most of the 2007 floating rate noteholders
to convert to equity, the firm will have to grant substantial
concessions to accelerate conversion, and that may have to
include board seats and voting control.

Analysts told BNamericas that with regards to issuing a high-
yield bond to replace the notes, Doral Financial would almost
ensure its loss, as it would have just pushed the inevitable
back about two years.

Doral Financial restated its 2000-04 results, decreasing net
income for the period US$609 million and shareholder equity 35%
as it corrected the value of derivatives called floating rate
interest-only strips used to hedge its mortgage portfolio.  The
accounting missteps resulted to the resignation of the founding
Levis family from the bank's management and board.  Investors'
fears were also intensified when non-executive chairperson John
A. Ward III resigned on Jan. 2 after a disagreement with the
board over the firm's future direction, BNamericas states.

Based in New York City, Doral Financial Corp. (NYSE: DRL) --
http://www.doralfinancial.com/-- is a diversified financial  
services company engaged in mortgage banking, banking,
investment banking activities, institutional securities and
insurance agency operations.  Its activities are principally
conducted in Puerto Rico and in the New York City metropolitan
area.  Doral is the parent company of Doral Bank, a Puerto Rico
based commercial bank, Doral Securities, a Puerto Rico based
investment banking and institutional brokerage firm, Doral
Insurance Agency Inc. and Doral Bank FSB, a federal savings bank
based in New York City.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Jan. 8, 2007, Moody's Investors Service downgraded to B2 from B1
the senior debt ratings of Doral Financial Corp.  Moody's said
the ratings are on review for possible downgrade.

Downgrades:

Issuer: Doral Financial Corp.

   -- Senior Unsecured Regular Bond/Debenture, Downgraded
      to B2 from B1.

Outlook Actions:

Issuer: Doral Financial Corp.

   -- Outlook, Changed To Rating Under Review From Negative.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Jan. 8, 2007, Standard & Poor's Ratings Services lowered its
long-term ratings on Doral Financial Corp., including the
counterparty credit rating, to 'B' from 'B+'.  

S&P said the outlook remains negative.


PILGRIM'S PRIDE: Names Wayne Lord as VP of Governmental Affairs
---------------------------------------------------------------
A. Wayne Lord has been appointed vice president of governmental
affairs of Pilgrim's Pride Corporation.

In this newly created position, Mr. Lord will be responsible for
the company's governmental affairs program and will represent
Pilgrim's Pride nationally and at the state level in the
company's Southeastern and Eastern operations.  He will report
to Clifford Butler, Pilgrim's Pride vice chairman.

Mr. Lord, who is based in Atlanta, brings more than 28 years of
experience in agriculture to this position.  He had previously
served as vice president of corporate relations for Gold Kist
Inc. for nearly three years.

"Wayne Lord is an experienced leader in Southeastern agriculture
who will help ensure that our Company's position on critical
business issues is well known at the state and national
legislative levels," said Mr. Butler.

Mr. Lord began his career in agriculture at Gold Kist in 1979,
working in strategic planning, public relations, export
management and, as a speaker of Russian, the development of
business relations with the former Soviet Union.  In the mid-
1980s, he moved to Europe to establish and administer the
American Peanut Council's commodity marketing program.  He later
returned to the United States and joined Southco Commodities
Inc., serving as president for 12 years.

Mr. Lord also has served as chairman of the board of directors
of the American Peanut Council and was instrumental in creating
a national foundation for scientific research in peanut
production and processing.  A native of Alabama, he attended
Birmingham-Southern College and earned his master's and
doctorate degrees at Georgetown University.  He currently serves
on the board of directors of the Georgia Chamber of Commerce and
is a member of the Advisory Council of the University of Georgia
College of Agricultural and Environmental Sciences.

                   About Pilgrim's Pride

Headquartered in Pittsburgh, Texas, Pilgrim's Pride Corp.
(NYSE: PPC) -- http://www.pilgrimspride.com/-- produces,
distributes and markets poultry processed products through
retailers, foodservice distributors and restaurants in the
United States, Mexico and in Puerto Rico.  Pilgrim's Pride
employs approximately 40,000 people and has major operations in
Texas, Alabama, Arkansas, Georgia, Kentucky, Louisiana, North
Carolina, Pennsylvania, Tennessee, Virginia, West Virginia,
Mexico and Puerto Rico, with other facilities in Arizona,
Florida, Iowa, Mississippi and Utah.

                        *    *    *

Moody's Investors Service's held its Ba2 Corporate Family Rating
for Pilgrim's Pride Corp.  In addition, Moody's revised or held
its probability-of-default ratings and assigned loss-given-
default ratings on the company's note issues, including an LGD6
rating on its US$100 million 9.25% Sr. Sub. Global Notes Due
Nov. 15, 2013, suggesting noteholders will experience a 95% loss
in the event of a default.

As reported in the Troubled Company Reporter on Dec. 6, 2006,
Standard & Poor's Ratings Services reported that its 'BB'
corporate credit rating and other ratings on the second-largest
U.S. poultry processor, Pilgrim's Pride Corp., remain on
CreditWatch with negative implications, where they were
originally placed Aug. 21, 2006.


MAIDENFORM BRANDS: S&P Revises Rating Outlook to Positive
---------------------------------------------------------
Standard & Poor's Ratings Services revised its rating outlook on
Bayonne, N.J.-based intimate apparel designer and marketer
Maidenform Brands Inc. to positive from stable.  Ratings on the
company, including the 'B+' corporate credit rating, were
affirmed.  Total debt outstanding at Sept. 30, 2006, was US$120
million.

"The outlook revision reflects Maidenform's improving trends in
revenue, margins, and credit protection measures--in particular,
debt leverage, which improved to 2.2x at Sept. 30, 2006, from a
high point of 3.4x at fiscal year-end December 2004," noted
Standard & Poor's credit analyst Susan Ding.  "Since we
initially assigned our rating to the company in May 2004,
Maidenform has successfully revitalized its well-recognized
brands, expanded its distribution channel into the mass market,
and improved operating efficiencies and performance."

The rating reflects Maidenform's participation in a highly
competitive and very promotional retail environment, its
relatively small size in the intimate apparel sector, its narrow
product focus, and some customer concentration.  Maidenform's
limited business focus in the intimates segment of the apparel
industry and its more than 50% concentration in the department
store/chain store channel are also rating concerns.

Furthermore, Maidenform competes against much larger players in
the industry, including VF Corp. (A-/Stable/A-2), Warnaco Group
Inc. (BB-/Stable/--), and Hanesbrands Inc. (B+/Stable--).  The
retail environment remains challenging, driven by price
pressures and competition from private labels.  The previously
mentioned factors are somewhat mitigated by the company's well-
known Maidenform brand, which was introduced in 1922 and which
still has very good brand recognition.

In addition, the rating incorporates the company's solid market
shares in its core market, intimate apparel, which is
characterized by relatively stable demand, low fashion risk, and
high replenishment rates.

In July 2005, Maidenform completed an IPO and used the net
proceeds to redeem its preferred stock.  At that time, the
company refinanced its higher interest bearing US$50 million
second-lien loan.  For the past 12 months ended Sept. 30, 2006,
revenues and EBITDA continued to improve, while credit-
protection measures remain above the medians for the rating
category. EBITDA interest coverage was 4.3x for the period,
while total debt to EBITDA was 2.2x, versus 2.8x in the prior-
year period.

Maidenform Brands, Inc. -- http://www.maidenform.com/-- is a
global intimate apparel company with a portfolio of established
and well-known brands, top-selling products and an iconic
heritage.  Maidenform designs, sources and markets an extensive
range of intimate apparel products, including bras, panties and
shapewear.  During the Company's 83-year history, Maidenform has
built strong equity for its brands and established a solid
growth platform through a combination of innovative, first-to-
market designs and creative advertising campaigns focused on
increasing brand awareness with generations of women.  
Maidenform sells its products under some of the most recognized
brands in the intimate apparel industry, including
Maidenform(R), Flexees(R), Lilyette(R), Self Expressions(R),
Sweet Nothings(R), Bodymates(TM), Rendezvous(R) and Subtract(R).  
Maidenform products are currently distributed in 48 foreign
countries and territories including Puerto Rico.




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


DAIMLERCHRYSLER AG: CEO Expresses Support for Chrysler Chief
------------------------------------------------------------
Dieter Zetsche, chief executive of DaimlerChrysler AG, said he
and the company's supervisory board supports Chrysler head Tom
LaSorda in his effort to return the ailing U.S. unit to
profitability, Bloomberg News reports.

"I have given him advice to not read too many news clips," Mr.
Zetsche told Bloomberg News.  "He is doing a good job in a
difficult environment."

Bloomberg News suggests that Mr. Zetsche's comments may clarify
speculations that Mr. LaSorda may lose his job.  Mr. LaSorda
succeeded Mr. Zetsche as Chrysler's chief.

Chrysler, which posted US$1.5 billion net loss in third quarter
2006, is forecasting a deficit for 2006.  The division recently
disclosed of plans to return to profitability in February.

"They need to bite the bullet, close some plants and
restructure," said Erich Merkle, an analyst at IRN Inc.  "They
are not going to be able to sell themselves out of this.  The
economy is slowing down."

                   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

In October 2006, 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, 2006, DaimlerChrysler reduced the Group's
operating- profit target for 2006 to an amount 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.


PETROLEO BRASILEIRO: Forming Joint Ventures with PDVSA
------------------------------------------------------
Petroleo Brasileiro, the state-run oil company of Brazil, will
forge joint ventures with Petroleos de Venezuela SA, its
Venezuelan counterpart, to explore mature fields in eastern
Venezuela, Brazilian daily Valor Economico reports.

Petroleo Brasileiro's international affairs director Nestor
Cervero told Valor Economico that the firm is negotiating with
Petroleos de Venezuela to sign four contracts for the
exploration of mature fields.  Petroleos de Venezuela would
control the joint ventures.

Business News Americas relates that Petroleos de Venezuela and
Petroleo Brasileiro signed memorandum of understandings in 2005
to invest in 20 mature fields in Venezuela to increase their
production.

The report says that in addition to mature fields, Petroleo
Brasileiro is negotiating with Petroleos de Venezuela for
exploration operations in the Orinoco heavy crude belt and other
projects.

Petroleo Brasileiro said in a statement that it produces oil
through four joint ventures in Venezuela and has estimated
reserves of 269 million barrels of oil equivalent in the nation.

Mauro Andrade, Deloitte Petroleum Services group regional
manager in Brazil, told BNamericas that Venezuela's President
Hugo Chavez's plans to boost the state's presence in the economy
have little effect on Petroleo Brasileiro's operations in
Venezuela in terms of reserves and production.  

BNamericas underscores that President Chavez's plans are
expected to have little impact on Petroleo Brasileiro's overall
performance worldwide since current projects and new contracts
include changes in Venezuelan legislation.

The report says that Petroleo Brasileiro has total reserves of
13 billion barrels of oil equivalent while total output was over
2.3 million barrels of oil equivalent per day, which is more
than 130 times the 17,000 barrels per day it produces in
Venezuela.

"Of course every barrel counts, but the impact on operations is
not significant.  The problem is that when the investor looks at
a company like Petrobras (Petroleo Brasileiro) that has
significant investments in Latin America, which is going through
instability and changes in opening up its economy, they want to
know if the company is making money there," Mr. Andrade told
BNamericas.

               About Petroleos de Venezuela

Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad.  The company has a commercial office in China.

                 About Petroleo Brasileiro

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

Petrobras has operations in China, India, Japan, and Singapore.  
It also operates in Venezuela through wholly owned subsidiary
PESA, which is controlled through the firm's Argentina-based
unit Petrobras Energia.

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.


PETROLEOS DE VENEZUELA: Forming Joint Ventures with Petrobras
-------------------------------------------------------------
Petroleos de Venezuela SA, the state-run oil firm of Venezuela,
will forge joint ventures with Petroleo Brasileiro, its
Brazilian counterpart, to explore mature fields in eastern
Venezuela, Brazilian daily Valor Economico reports.

Petroleo Brasileiro's international affairs director Nestor
Cervero told Valor Economico that the firm is negotiating with
Petroleos de Venezuela to sign four contracts for the
exploration of mature fields.  Petroleos de Venezuela would
control the joint ventures.

Business News Americas relates that Petroleos de Venezuela and
Petroleo Brasileiro signed memorandum of understandings in 2005
to invest in 20 mature fields in Venezuela to increase their
production.

The report says that in addition to mature fields, Petroleo
Brasileiro is negotiating with Petroleos de Venezuela for
exploration operations in the Orinoco heavy crude belt and other
projects.

Petroleo Brasileiro said in a statement that it produces oil
through four joint ventures in Venezuela and has estimated
reserves of 269 million barrels of oil equivalent in the nation.

Mauro Andrade, Deloitte Petroleum Services group regional
manager in Brazil, told BNamericas that Venezuela's President
Hugo Chavez's plans to boost the state's presence in the economy
have little effect on Petroleo Brasileiro's operations in
Venezuela in terms of reserves and production.  

BNamericas underscores that President Chavez's plans are
expected to have little impact on Petroleo Brasileiro's overall
performance worldwide since current projects and new contracts
include changes in Venezuelan legislation.

The report says that Petroleo Brasileiro has total reserves of
13 billion barrels of oil equivalent while total output was over
2.3 million barrels of oil equivalent per day, which is more
than 130 times the 17,000 barrels per day it produces in
Venezuela.

"Of course every barrel counts, but the impact on operations is
not significant.  The problem is that when the investor looks at
a company like Petrobras (Petroleo Brasileiro) that has
significant investments in Latin America, which is going through
instability and changes in opening up its economy, they want to
know if the company is making money there," Mr. Andrade told
BNamericas.

                 About Petroleo Brasileiro

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

Petrobras has operations in China, India, Japan, and Singapore.  
It also operates in Venezuela through wholly owned subsidiary
PESA, which is controlled through the firm's Argentina-based
unit Petrobras Energia.

               About Petroleos de Venezuela

Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad.  The company has a commercial office in China.

                        *    *    *

Standard & Poor's said on July 17 that it may lower the
company's B+ foreign-currency debt rating in part because of the
absence of timely financial and operating information.                   


* VENEZUELA: Gov't Says It Will Pay Companies in Nationalization
----------------------------------------------------------------
Guillermo Parra-Bernal at Bloomberg News reports that the
Venezuelan government will compensate power and telephone
companies affected by the nationalization of these sectors.  
The move was announced by President Hugo Chavez when he was
sworn in to office.

"Confiscation, expropriation are banned words in our
dictionary," Ricardo Sanguino, the National Assembly Finance
Committee's chairman told Bloomberg News in an interview.  "We
will be tough but fair negotiators.  There are legal mechanisms
in the Constitution that give support to our plan."

The assurance resulted to a raise for Venezuela's stocks and
currency.

The Caracas Stock Exchange index rose 6.1%.  U.S. shares of CA
Nacional Telefonos de Venezuela, or Cantv, which the government
plans to nationalize, gained 20% in New York trading.  The
country's benchmark bond also rose.

Mr. Sanguino explained to Bloomberg that President Chavez's
nationalization plan calls for buyouts not expropriations.  

According to Bloomberg, the nationalization of utilities and oil
ventures would reverse the previous Venezuelan governments'
privatization of state companies and opening the market to
foreign investors.

                        *    *    *

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: J.P. Morgan Pares Rating on Sovereign Bonds
--------------------------------------------------------
Investment bank J.P. Morgan reduced the rating of Venezuela's
debt to market correlation from market correlation plus, and
added that it took profit on the country's bonds, El Universal
reports.

According to the investment bank, the rating cut is associated
with the risk after the reelection of President Hugo Chavez and
falling oil prices, El Universal relates.

"President Chavez has clearly set a more radical tone following
his reelection by an overwhelming majority, and he seems to
speed up his long-term vision of increasing state control in
Venezuela," Reuters report, quoting the Bank's written analysis.

                        *    *    *

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: Treasury Promises to Compensate CANTV Shareholders
---------------------------------------------------------------
The Venezuelan Treasury Department promises to pay the fair
value for telecom company Compania Anonima Nacional Telefonos de
Venezuela once the government's plan to nationalize it will push
through.

"Shareholders will receive for the notes the fair value of their
assets.  Nationalization will be an opportunity for the State to
keep the corporate value and ensure also timely investments,"
Minister of Finance Rodrigo Cabezas told El Universal.  "A
significant participation of workers is anticipated in the
future operational layout of the company."

"CANTV formed part of the privatization within the framework of
the Washington Accord.  Then, State shareholding was reduced,
but now the revolution will recover the companies.  The
Constitution reserved the rights of sovereignty and national
autonomy.  Therefore, the State not only has reserved the oil
business, but also other areas," the finance minister added.

                        About CANTV

Compania Anonima Nacional Telefonos de Venezuela, CANTV, offers
telecommunications services.  The Company provides domestic and
international long distance telephone services throughout
Venezuela, wireless telephone services, and Internet access, and
publishes telephone directories.

                        *    *    *

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.


* Fitch Reviews Latin America Structured Finance in 2006
--------------------------------------------------------
Fitch Ratings released the "Latin American Structured Finance
2006 Year in Review and 2007 Outlook."  The report includes data
and explanation of both cross-border and local market structured
finance issuance.  The report explains that 2006 was an average
year for Latin American cross-border structured finance.  Dollar
issuance volumes in the cross-border capital markets were more
than 25% higher than 2005 levels, while remaining below the
levels last seen in 2003.  Many new issuers and unique
transactions were successfully placed in the cross-border
market.  The major stories in 2006 were the cross-border
issuances of sub-investment-grade debt and the shift away from
future flow structures toward those utilizing more existing
assets.  A true asset-backed issuance was Navistar (Trust
#229563), an auto-loan securitization originated out of Mexico.  
Also noteworthy in 2006 was the issuance diversification by
country.  Along with Mexico, there were successful structured
issuances out of Brazil, El Salvador, Panama, Peru, Guatemala,
Jamaica, Argentina, and the Dominican Republic.

Fitch's expectation is for credit trends to remain stable in
2007.  While Fitch would be surprised to see the dollar volume
of cross-border issuances for 2007 greatly exceed 2006, there
are several companies throughout the region that could access
the market with structured financing.  There is potential for
new asset classes more closely resembling more traditional
asset-backed securitizations and increasingly utilizing existing
assets.  Fitch's expectation for the near future is the
successful placement of commercial mortgage-backed securities,
residential mortgage-backed securities, and auto loans in the
cross-border market.


* Large Companies with Insolvent Balance Sheets
-----------------------------------------------  
                                Total  
                                Shareholders  Total     
                                Equity        Assets    
Company                 Ticker  (US$MM)       (US$MM)     
-------                 ------  ------------  -------  
Kuala                    ARTE3     (33.57)      11.86
Kuala-Pref               ARTE4     (33.57)      11.86
Bombril                  BOBR3    (781.53)     473.67
Bombril-Pref             BOBR4    (781.53)     473.67
CIC                      CIC    (1,883.69)  22,312.12
Telefonica Holding       CITI   (1,010.00)     861.00
Telefonica Holding       CITI5  (1,010.00)     861.00
SOC Comercial PL         COME     (732.78)     461.86
CIMOB Partic SA          GAFP3     (44.34)     121.74
CIMOB Part-Pref          GAFP4     (44.38)     121.74
DOC Imbituba             IMBI3     (19.84)     192.80
DOC Imbitub-Pref         IMBI4     (19.84)     192.80
IMPSAT Fiber Networks    IMPTQ     (17.16)     535.01
Kepler Weber             KEPL3     (22.20)     478.81
Paranapanema SA          PMAM3     (53.36)   3,268.96
Paranapanema-PREF        PMAM4     (53.36)   3,268.96
Telebras-CM RCPT         RCTB30    (59.79)     228.35
Telebras-PF RCPT         RCTB40    (59.79)     228.35


                        ***********


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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