TCRLA_Public/070117.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Wednesday, January 17, 2007, Vol. 8, Issue 12

                          Headlines

A R G E N T I N A

ALPARGATAS: Fitch Argentina Places D Ratings on 4 Note Classes
AGROFLEX SA: Reorganization Proceeding Concluded
AMERICAN LASER: Trustee Verifies Proofs of Claim Until March 22
BANCO FRANCES: Launches Mobile Banking Service with Movistar
BREYAUI HERMANOS: Claims Verification Deadline Is on March 8

ELECTRICIDAD ARGENTINA: S&P Assigns B- Global Scale Rating
EMPRESA DISTRIBUIDORA: S&P Puts D Rating on US$150-Mil. Notes
GRAIN & FOOD: Reorganization Proceeding Concluded
HOLGEN JENSEN: Reorganization Proceeding Concluded
HUGO CARLOS: Proofs of Claim Verification Is Until March 6

IGNACIO LIPRANDI: Individual Reports Due in Court on March 19
INVERSIONES Y REPRESENTACIONES: Issuing Up to US$150-Mil. Notes
MAURICIO MESPLET: Claims Verification Is Until Feb. 28
MIGUEL ANGEL: Asks for Court Approval to Reorganize Business
PINNACLE ENT: Reports 10MM New Shares Priced at US$32 Per Share

TYSON FOODS: Inks Beef Joint Venture Pact Cactus & Cresud

* ARGENTINA: Issuing 7% Bonar VII Bonds for US$1 Billion

B E R M U D A

INTELSAT: Cony Kullman Inducted into SSPI Satellite Hall of Fame
REFCO INC: Court Reduces Seven Deficient Claims to Zero
REFCO: RCM Trustee Wants More Time to File List of Securities

B O L I V I A

* BOLIVIA: Signing New Export Contract with Brazil

B R A Z I L

AKER KVAERNER: Inks US$23-Million Deal with Atlantia Offshore
ALERIS INTERNATIONAL: Discloses Further Management Promotions
BANCO BRADESCO: Unit Won't Sell Stake in Companhia Vale do Rio
BANCO NACIONAL: Allots BRL600MM for Digital Inclusion Program
BANCO NACIONAL: Grants US$123 Mil. Financing to DaimlerChrysler

DAIMLERCHRYSLER: Gets US$123-Mil. Financing from Banco Nacional
EMI GROUP: Axes Music Unit Chief; Unveils Restructuring Plan
EMI GROUP: Fitch Says Poor Sales Resulted from Competing Media
EMI GROUP: Moody's Downgrades Corporate Family Rating to Ba3
GOL LINHAS: Highlights Achievements in Six Years

GP INVESTMENTS: Acquires 32% Stake of Igaratinga for US$39.3 Mln
ISA CAPITAL: Fitch Rates US$544 Million Sr. Secured Notes at BB
METSO OYJ: Inks Equipment Supply Deal with Japan Novopan
NET SERVICOS: Merrill Lynch Says Vivax Buy Is Good on All Fronts
PETROLEO BRASILEIRO: Talking with Consortium in Ceara Project

PETROLEO BRASILEIRO: Investing in Proinfa Renewable Projects
PROPEX INC: Moody's B2 CFR Changes Outlook Rating to Negative
TK ALUMINUM: Provides Update on Liquidity Position
TK ALUMINUM: S&P Lowers Long-Term Corporate Credit Rating to SD
UNIAO DE BANCOS: Joint Venture Paying Claims in Subway Collapse

USINAS SIDERURGICAS: Eyes Over 8MM Tons Total Sales Volume

* BRAZIL: Signing New Gas Import Contract with Bolivia

C A Y M A N   I S L A N D S

ANTARES REAL: Deadline for Proofs of Claim Filing Is on Jan. 26
ANTARES REAL: Shareholders to Gather for Jan. 26 Final Meeting
BALANCED HIGH-YIELD: Claims Filing Deadline Is on Jan. 27
BOERO LTD: Last Day to File Proofs of Claim Is on Jan. 27
COUTTS FINANCE: Proofs of Claim Filing Deadline Is on Jan. 26

DEBORA INVESTMENTS: Final Shareholders Meeting Is on Jan. 26
DEBORA INVESTMENTS: Proofs of Claim Filing Deadline Is Jan. 26
DEEP RIVER: Proofs of Claim Filing Is Until Jan. 27
DIA RAILROAD: Shareholders to Convene for Jan. 25 Final Meeting
EXIS INTEGRATED: Last Day for Proofs of Claim Filing Is Jan. 26

SAGABEA INVESTMENTS: Claims Filing Deadline Is on Jan. 27
SERENGETI FINANCIAL: Proofs of Claim Must be Filed by Jan. 27
SHIHARAI DAIKOU: Creditors Must File Proofs of Claim by Jan. 27
SIRIUS FINANCE: Creditors Must File Proofs of Claim by Jan. 26
SIRIUS FINANCE: Calls Shareholders for Final Meeting on Jan. 26

SITKA INVESTMENTS: Last Day for Claims Filing Is on Jan. 27
PHOENIX-MISTIC: Proofs of Claim Filing Deadline Is on Jan. 27
PINE HILLS: Creditors Must Submit Proofs of Claim by Jan. 27
TESCO AQUA: Creditors Have Until Jan. 26 to File Proofs of Claim
TESCO BLUE: Proofs of Claim Filing Deadline Is on Jan. 26

TESCO RED: Deadline for Proofs of Claim Filing Is on Jan. 26
TR INVESTMENT: Last Day for Proofs of Claims Filing Is Jan. 27
ZEBEDEE CAPITAL: Last Day for Claims Filing Is on Jan. 26

C H I L E

ARAMARK: Moody's Holds Ba3 Rating on Proposed US$4.15-Bil. Loan

C O L O M B I A

INDUSTRIAS METALURGICAS: Unit Building Floodgates for Porce III

D O M I N I C A N   R E P U B L I C

* DOMINICAN REPUBLIC: Issuing 50-Yr. Bonds to Cover Deficit

E C U A D O R

PETROECUADOR: Inks Strategic Alliance with Turkish Petroleum

* ECUADOR: Inaugurates San Francisco Hydroelectric Project Unit

E L   S A L V A D O R

* EL SALVADOR: Needs New Law to Regulate Hydrocarbons Sale

G U A T E M A L A

BANCO DE COMERCIO: Central Bank Suspends Firm's Operations

* GUATEMALA: Central Bank Suspends Comercio's Operations

J A M A I C A

AIR JAMAICA: Losses Royal Caribbean Cruise Shipping Contract
SUGAR COMPANY: Number of Bids for Sugar Factories Increases

* JAMAICA: Central Bank Reports US$1.1-Billion Loss

M E X I C O

ADVANCED MARKETING: Wants to Employ Richards Layton as Counsel
GENERAL MOTORS: Eyes Purchase of Stake in Malaysia's Proton
GRUPO ELEKTRA: Names Carlos Septien as Chief Executive Officer
HOME PRODUCTS: Receives Court Approval for US$60 Mil. DIP Loan
JABIL CIRCUIT: Completes Tender Offer for Taiwan Green Point

MAGNA INT'L: Sees Plant Closures & Consolidations in 2007
SONIC CORP: Moody's Withdraws Low-B Corporate Ratings
VISTEON CORP: Sees Challenging 2007 But Improved 2008 Production
VITRO SAB: S&P Raises Long-Term Corporate Credit Rating to B
VITRO ENVASES: S&P Places B Rating on Proposed US$750-Mil. Notes

P A N A M A

SOLO CUP: Fitch Puts B- Issuer Default Rating, Outlook Negative

* PANAMA: Banana Exports Recover After Black Sigatoka Crisis

P E R U

IRON MOUNTAIN: S&P Rates Proposed EUR175 Mil. Senior Notes at B

* PERU: Minister Starts Up Two Transmission Lines in Arequipa
* PERU: Perupetro To Launch Exploration Auction of 18 Blocks

P U E R T O   R I C O

ALLIED WASTE: James P. Zeumer to Lead Corp. Communication Effort
ADVANCED CARDIOLOGY: Section 341(a) Meeting Slated for Feb. 12
DAVID'S BRIDAL: Moody's Places Corporate Family Rating at B2
SALLY BEAUTY: Appoints David Rea as Senior VP, CFO & Treasurer

T R I N I D A D   &   T O B A G O

ROYAL CARIBBEAN: Awards Shipping Contract to American Airlines

U R U G U A Y

AMERICAN AIRLINES: Gets Shipping Contract from Royal Caribbean

V E N E Z U E L A

AES CORP: Venezuela Buying Shares in Electricidad de Caracas
DAIMLERCHRYSLER: Might Delay Releasing 2006 Financial Statements
DAIMLERCHRYSLER AG: To Sell 7.5% EADS Stake to Bank Consortium
PETROLEOS DE VENEZUELA: Will Create New Firm with Petropars

* VENEZUELA: Pres. Chavez to Extend Gas Pipeline to Nicaragua
* VENEZUELA: Deciding How Much Stake to Buy in CA Nacional


                         - - - - -


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


ALPARGATAS: Fitch Argentina Places D Ratings on 4 Note Classes
--------------------------------------------------------------
Fitch Argentina Calificadora de Riesgo assigned D ratings on
Alpargatas' Obligaciones Negociables for:

     -- US$70 million (US$6.2 million in circulation),
     -- US$40.898 million in circulation,
     -- US$80 million (US$5.9 million in circulation),
     -- US$40 million (US$13.4 million in circulation),
     -- US$1.1 million (Class A) and US$80 millions (Class B).

Shares were included in category 2.

The rate given to the shares respond mainly to the homologation
of the agreement reached with its creditors on last September.

The reestructuring of the debt still holds certain uncertainty
in relation to the capacity of the company of generating funds.
The rate of D will be mantained for the titles until the
exchange takes place.

As a result of the reestructuring of its debt, on Sept. 2006,
the company was able to recover its negative shareholders
equity.  At September 2006, Alpargatas reported US$42 million of
shareholders equity.

Alpargatas S.A.I.C. is an Argentine producer of sport shoes
(through Alpargatas Calzados) and cloths (through Alpargatas
Textil).  


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


AMERICAN LASER: Trustee Verifies Proofs of Claim Until March 22
---------------------------------------------------------------
Luciano Melegari, the court-appointed trustee for America Laser
SRL's bankruptcy proceeding, verifies creditors' proofs of claim
until March 22, 2007.

Mr. Melegari will present the validated claims in court as
individual reports on May 7, 2007.   A court in Buenos Aires
will determine if the verified claims are admissible, taking
into account the trustee's opinion and the objections and
challenges raised by American Laser 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 American Laser's
accounting and banking records will follow on June 18, 2007.

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

The debtor can be reached at:

         American Laser SRL
         Gualeguay 1065
         Buenos Aires, Argentina

The trustee can be reached at:

         Luciano Melegari
         Bartolome Mitre 1131
         Buenos Aires, Argentina  


BANCO FRANCES: Launches Mobile Banking Service with Movistar
------------------------------------------------------------
Banco Frances has launched a mobile banking service with
Movistar Argentina, the latter said in a statement.

Business News Americas relates that the new service allows
subscribers to make:

          -- payments,
          -- bank transfers,
          -- requests for information, and
          -- receive alerts regarding payment expiry dates and
             balances, among other things.

Local banks are promoting the use of mobile banking solutions.  
Last year, Banco Galicia launched a similar service in
partnership with America Movil's unit CTI Movil, and Banco Rio
launched the service with Personal, BNamericas states.

Headquartered in Buenos Aires, Argentina, BBVA Banco Frances SA
-- http://www.bancofrances.com-- conducts capital markets and
securities operations directly, in the over-the-counter market,
and through a subsidiary, in the Buenos Aires Stock Exchange.
The bank operates 227 branches, 512 automated teller machines
(ATMs), a telephone banking service and an Internet banking
service, called Frances Net.  Banco Frances has a market share
in the mutual fund portfolio management industry in Argentina
through Frances Administradora de Inversiones SA, and in the
pension fund industry through Consolidar AFJP SA.  Banco Frances
is a subsidiary of Banco Bilbao Vizcaya Argentaria.

                        *    *    *

As reported on June 2, 2006, Moody's Investors Service upgraded
the Bank Financial Strength Rating of BBVA Banco Frances SA to
D- from E to reflect:

   -- the bank's improving financial fundamentals,
   -- the relative improvement in the operating environment, and
   -- the recovery of the banking system since the financial
      crisis of 2001-2002.

BBVA Banco Frances long-term bank deposits carries Moody's
Investor Service's Caa1 rating.


BREYAUI HERMANOS: Claims Verification Deadline Is on March 8
------------------------------------------------------------
Gabriel Eduardo Bigal, the court-appointed trustee for Breyaui
Hermanos SRL's bankruptcy proceeding, verifies creditors' proofs
of claim until March 8, 2007.

Mr. Bigal will present the validated claims in court as
individual reports on May 7, 2007.   A court in Buenos Aires
will determine if the verified claims are admissible, taking
into account the trustee's opinion and the objections and
challenges raised by Breyaui Hermanos 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 Breyaui Hermanos'
accounting and banking records will follow on June 21, 2007.

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

The trustee can be reached at:

         Gabriel Eduardo Bigal
         Reconquista 1011
         Buenos Aires, Argentina  
          
                                                  
ELECTRICIDAD ARGENTINA: S&P Assigns B- Global Scale Rating
----------------------------------------------------------
S&P has recently rated with B- (global scale) and with raBB+
Electricidad Argentina, owner of 51% of the main Argentina
electrical distributor: Empresa Distribuidora y Comercializadora
Norte SA.


EMPRESA DISTRIBUIDORA: S&P Puts D Rating on US$150-Mil. Notes
-------------------------------------------------------------
Empresa Distribuidora de Electricidad de Mendoza S.A.'s
Obligaciones Negociables simples for US$150,000,000 is rated D
by Standard & Poor's.  The debt became due on April 13, 2005.  
The rating action was taken based on the company's balance sheet
at Sept. 30, 2006.


GRAIN & FOOD: Reorganization Proceeding Concluded
-------------------------------------------------
Grain & Food SA'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.


HOLGEN JENSEN: Reorganization Proceeding Concluded
--------------------------------------------------
Holger Jensen e Hijos SH's reorganization proceeding has ended.  
Data published by Infobae on its Web site indicated that
the process was concluded after a court in Cordoba approved the
debt agreement signed between the company and its creditors.


HUGO CARLOS: Proofs of Claim Verification Is Until March 6
----------------------------------------------------------
Nora Mabel Pszemiarower, the court-appointed trustee for Hugo
Carlos Rey SA's reorganization proceeding, will verify
creditors' proofs of claim until March 6, 2007.

Ms. Pszemiarower will present the validated claims in court as
individual reports on April 18, 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 Hugo Carlos 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 Hugo Carlos'
accounting and banking records will follow on June 1, 2007.

On Nov. 11, 2007, Hugo Carlos' creditors will vote on a
settlement plan that the company will lay on the table.

The trustee can be reached at:

          Nora Mabel Pszemiarower
          Avenida Corrientes 1257
          Buenos Aires, Argentina


IGNACIO LIPRANDI: Individual Reports Due in Court on March 19
-------------------------------------------------------------
Verification of proof of claims from Ignacio Liprandi Oliva
SRL's creditors ended Dec. 18, 2006.  Infobae relates that
verified claims will be used as basis in creating individual
reports, which will be due in court on March 19, 2007.

Ignacio Liprandi started reorganizing its business after a
Buenos Aires court approved its petition.  The company has been
unable to pay its debts since December 2004.


INVERSIONES Y REPRESENTACIONES: Issuing Up to US$150-Mil. Notes
---------------------------------------------------------------
Inversiones y Representaciones SA has announced the issuance of
Obligaciones Negociables due in 10 years and not convertible
into shares, for a maximum of US$150 million.

The local agency in charge of the location will be Citicorp
Capital Markets, while for the international part Credit Suisse
Securities and Citigroup Global Markets will be in charge.

Interested candidates will be able to present indication of
interests until Jan. 24.

The price of the issue and the interest rates will be determined
through the process of reception of offers by the locating
agencies.

The minimum amount for suscription is US$2,000 or larger amounts
multiple of US$1,000.

Inversiones y Representaciones will ask for the notes to be
traded at the Bolsa de Comercio de Buenos Aires and the Mercado
Abierto Electronico.  It might also ask for the titles to be
traded at the Euro MTF of the Stock market of Luxembuorg.

Standard & Poor's Ratings Services assigned its 'B+' corporate  
credit rating to Inversiones y Representaciones's upcoming
issuance of US$150 million 10-year bullet bonds.  S&P said the
outlook is stable.


MAURICIO MESPLET: Claims Verification Is Until Feb. 28
------------------------------------------------------
Daniel Santiago Perazzo, the court-appointed trustee for
Mauricio Mesplet SACIFIA's bankruptcy proceeding, will verify
creditors' proofs of claim until Feb. 28, 2007.

Under the Argentine bankruptcy law, Mr. Perazzo 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 Mauricio Mesplet and its
creditors.

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

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

Mauricio Mesplet's creditors will vote on a settlement plan that
the company will lay on the table.

The debtor can be reached at:

          Mauricio Mesplet SACIFIA
          Avda Sarmiento 49, Chivilcoy
          Buenos Aires, Argentina  

The trustee can be reached at:

          Daniel Santiago Perazzo
          Calle 21 Numero 550, Mercedes
          Buenos Aires, Argentina


MIGUEL ANGEL: Asks for Court Approval to Reorganize Business
------------------------------------------------------------
A court in Buenos Aires is studying the merits of Miguel Angel
Daddiego SA's petition to reorganize its business after it
stopped paying its obligations.

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

The debtor can be reached at:

         Miguel Angel Daddiego SA
         Esmeralda 740 OF. 15
         Buenos Aires, Argentina


PINNACLE ENT: Reports 10MM New Shares Priced at US$32 Per Share
---------------------------------------------------------------
Pinnacle Entertainment Inc. entered into an underwriting
agreement with Bear, Stearns & Co. Inc. and Lehman Brothers Inc.
as the representatives of the several underwriters, for the sale
to the public of 10 million shares of its common stock, par
value US$0.10 per share, at US$32 per share resulting in gross
proceeds 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.

According to the terms of the underwriting agreement, the
underwriters will receive an underwriting discount equal to
US$1.25 per share.

The company has granted the underwriters an option exercisable
for thirty days after the date of the underwriting agreement to
purchase 1.5 million additional shares of its common stock at
the same public offering price minus the underwriting discount.

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 proceeds of the offering are expected to be used 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.

The company also disclosed Bear Stearns Corporate Lending Inc.,
an affiliate of Bear, Stearns & Co. Inc., is a syndication agent
and lender under the Credit Facility.  Lehman Commercial Paper
Inc., an affiliate of Lehman Brothers Inc., is the
administrative agent and a lender under the Credit Facility.
Deutsche Bank Securities, Inc. is one of the joint documentation
agents and one of its affiliates is a lender under the Credit
Facility.

Either directly or through their affiliates, several other
underwriters, including Merrill Lynch, Pierce, Fenner & Smith
Incorporated, JP Morgan Securities Inc., Bank of America
Securities LLC, Wachovia Capital Markets, LLC, Societe Generale
Securities Corporation, Wells Fargo Securities, LLC and
Commerzbank Capital Markets Corporation, are also lenders under
the Credit Facility.  The underwriters and/or their affiliates
receive customary fees and expenses for such services.

Copies of the prospectus supplement relating to the offering may
be obtained from Bear, Stearns & Co. Inc., Prospectus
Department, 383 Madison Avenue, New York, New York 10179, Tel.
No. 1-866-803-9204 or Lehman Brothers Inc., c/o ADP Financial
Services, Prospectus Fulfillment, 1155 Long Island Avenue,
Edgewood, NY 11717 at Fax No. (631) 254-7268. charge at
http://ResearchArchives.com/t/s?187d

A full text-copy of the Opinion and Consent of Irell & Manella
LLP relative to the Public Sale may be viewed at no charge at
http://ResearchArchives.com/t/s?187e

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.


TYSON FOODS: Inks Beef Joint Venture Pact Cactus & Cresud
---------------------------------------------------------
Tyson Foods, Inc., has entered into a joint venture in
Argentina, which will create the first vertically integrated
beef operation in the South American country.  The venture is
expected to produce both products for the domestic Argentine
consumer and give Tyson access to European and other high value
beef markets.

Tyson has teamed up with Cactus Feeders Inc. and Cresud
S.A.C.I.F. y A., the leading agribusiness company in Argentina.  
The joint venture will use an existing feedlot operated by
Cactus and Cresud to supply most of the beef for a beef
slaughter and processing plant recently purchased by the joint
venture.  Both the feedlot and plant are located in central
Argentina.  Sales for the joint venture are expected to be in
the range of US$30 to US$35 million in 2007.

Cactus and Cresud have successfully operated the feedlot,
located at Villa Mercedes in the province of San Luis, since
1999.  It currently has a one-time capacity of 25,000 head, but
the new venture has plans to expand its feedlot capacity in the
region.  The boxed beef plant, previously operated under the
name Exportaciones Agroindustriales Argentinas S.A., is located
in Santa Rosa in the province of La Pampa. It will be Tyson's
first participation in a beef operation outside of North
America.

Currently, approximately 380 people work at the government
inspected facility, which now has the capacity to slaughter and
process about 9,500 cattle per month.  The new company expects
to expand the plant's capacity to 15,000 head per month in the
future.

As part of the joint venture, much of the plant's production
will gradually be converted from grass-fed to grain-fed beef
using cattle from the Cactus-Cresud feedlot.  The higher quality
product will provide increased access to important export
markets in Asia, as well as the European Union.  The plant
already has approval to ship product to the EU, as well as other
countries, and exports a majority of the mostly grass-fed, boxed
beef it currently produces.

"At Tyson, we are excited to join two great business partners in
Cactus Feeders and Cresud.  We believe our combined expertise
will create a great new company that will be able to produce
products for domestic consumption as well as export," said Rick
Greubel, group vice president of international for Tyson.  
"Cresud's involvement in grain and livestock production, the
experience of Cactus in the feedlot business and Tyson's success
in processing and marketing beef will help capitalize on the
strengths of Argentina's beef industry.  This is also an
important first step for Tyson as we look to create a presence
in South America."

Paul Engler, chairman of the board of Cactus Feeders, Inc.,
said,  "We're very pleased the reorganization of Cactus
Argentina includes the ownership and active participation of
Tyson.  Developing a vertically integrated system with such a
partner has been one of our ultimate objectives in Argentina.  
Having a U.S. meat processor with the stature of Tyson as an
active participant will have a very positive impact on the
growth of the cattle sector in the country."

"We believe a vertically integrated system for finishing cattle
and processing beef in Argentina is the perfect way to
capitalize on the strengths of the country's beef industry,"
added Miguel De Achaval, vice president and general manager of
Cactus Argentina.  "The commitment of this venture is to work
with the Argentine beef producers to offer a superior product at
an affordable price for the domestic and the foreign markets."

Argentina is the fifth leading producer of beef and veal in the
world, after the U.S., Brazil, the European Union and China, and
is the second leading exporter of beef.  The country is known
for its low beef production costs due to competitive livestock,
labor and energy markets, as well as the high quality breeds of
the cattle raised there.

                   About Cactus Feeders

Cactus Feeders, headquartered in Amarillo, Texas, has nine
large-scale feedyards across the Texas High Plains & Southwest
Kansas.  Since its founding in 1975, Cactus Feeders has grown to
become one of the world's leading cattle feeding companies,
employing approximately 500 people.

                        About Cresud

Cresud is a leading Argentine producer of basic agricultural
products and the only such company with shares listed on the
Buenos Aires Stock Exchange and NASDAQ.  The company is
currently involved in various operations and activities,
including crop production, cattle raising and fattening, milk
production and certain forestry activities.  Most of its farms
are located in Argentina's Pampas, one of the largest temperate
prairie zones in the world and one of the richest areas of the
world for agricultural production.

                     About Tyson Foods

Based in Springdale, Arkansas, Tyson Foods, Inc. (NYSE:TSN) --
http://www.tysonfoods.com/-- is a processor and marketer of
chicken, beef, and pork.  The company produces a wide variety of
protein-based and prepared food products, which are marketed
under the "Powered by Tyson(TM)" strategy.  It has operations in
Argentina.

On Sept. 25, 2006, Moody's Investors Service took a number of
rating actions in relation to Tyson, including the assignment of
a Ba1 rating to the company's:

   -- US$1 billion senior unsecured bank credit facility; and

   -- US$345 million senior unsecured bank term loan for its
      Lakeside Farms Industries Ltd. subsidiary, under a full
      Tyson Foods, Inc. guarantee.


* ARGENTINA: Issuing 7% Bonar VII Bonds for US$1 Billion
--------------------------------------------------------
The Argentine Minister of Economy is preparing the issuance of
the so-called bond, Bonar VII, for US$1 billion dollars, at an
annual rate of 7%, which will come due in 2013.

The title was created on September 2006 with an emission
estimated for up to US$2 billion.  That same month, US$500
million were issued with a rate of 8.4%.  By the end of November
2006, another US$500 million, with a rate of the 803%, was sold
to the market.

The offer will be done through the Mercado Abierto Electronico.

The Dutch Auction will be used in the sale, where a price will
be fixed and offers for more than this amount will be
considered.

                        *    *    *

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


INTELSAT: Cony Kullman Inducted into SSPI Satellite Hall of Fame
----------------------------------------------------------------
Intelsat disclosed that Conny Kullman, Chairman (retired) of
Intelsat Ltd., Board of Directors, is a 2007 inductee to the
Society of Satellite Professionals International or SSPI
Satellite Hall of Fame.

Mr. Kullman led Intelsat and its global employee base through
its privatization, and its metamorphosis into a highly
competitive operator.  In addition, he was a driving force
behind commercial, operational and engineering changes during
his tenure as Intelsat's Chief Executive Officer from 1998-2005.  
Under his leadership, Mr. Kullman implemented a terrestrial
strategy resulting in the development of Intelsat's GlobalConnex
portfolio suite of services, which now represents approximately
US$130 million in annual revenues.  In addition, Mr. Kullman led
a US$2.5 billion, 3-year fleet replenishment campaign that
increased available capacity in growth markets.  In 2003, Mr.
Kullman was at the helm when Intelsat announced its acquisition
of the North American satellites of Loral Space and
Communications, providing Intelsat with access to the North
American market and completing Intelsat's global system.

In 2004, Mr. Kullman recognized the opportunity to achieve the
goals of the ORBIT Act while at the same time obtaining premium
shareholder returns, by conducting an LBO process which resulted
in the acquisition of Intelsat by a consortium of private equity
firms at a competitive price.  Mr. Kullman capped his career in
2005 as Chairman of Intelsat, playing a critical role in the
completion of Intelsat's acquisition of PanAmSat.

"Conny led Intelsat through its privatization and began the
challenging task of transforming the company from an
intergovernmental organization to a commercial company,
positioning Intelsat to become the leading global satellite
operator," said Dave McGlade, Intelsat CEO.  "His many
achievements throughout his career shaped Intelsat and the
industry."

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

                        *    *    *

As reported in the Troubled Company Reporter on Jan. 11, 2007,
Moody's Investors Service has assigned a B2 rating to Intelsat
Ltd.'s proposed US$1 billion of Senior Unsecured Term Loan and a
Caa1 rating to Intelsat Bermuda's proposed US$600 million Senior
Unsecured Notes.


REFCO INC: Court Reduces Seven Deficient Claims to Zero
-------------------------------------------------------
At the request of Marc S. Kirschner, the Chapter 11 Trustee of
Refco Capital Markets, Ltd., the U.S. Bankruptcy Court for the
Southern District of New York reduces to US$0 seven proofs of
claim, aggregating more than US$300,000,000, for purposes of
voting on the Refco Inc. and its debtor-affiliates' Modified
Joint Chapter 11 Plan.

The Claims are:

   Claimant                             Claim No.  Claim Amount
   --------                             ---------  ------------
   PCMG Trading Partners V LP             9315   US$196,874,882
   William T. Esrey Trading Partners      9314       36,957,887
   Global Macro Fund Limited             12080       40,384,866
   OFI Palmares                          12054       12,943,388
   SPhinX Managed Futures Index Fund LP  13253       39,005,537
   Masonic Medical Research Laboratory   11787        3,600,000
   Trustees of Masonic Hall & Asylum     13229       34,869,937

Jared R. Clark, Esq., at Bingham McCutchen LLP, in New York,
relates that Claim Nos. 9314 and 9315 are claims against RCM for
the value of the collateral pledged to RCM to secure loans to
the claimants.  The Loans are (i) outstanding and unpaid, and
(ii) of equal of greater amount than the Collateral value.

On the other hand, Claim Nos. 12080, 12054, 13253, 11787 and
13229 are claims based on the facts and circumstances underlying
the disputes between the Debtors and SPhinX Managed Futures Fund
SPC and certain other entities.  All of those were resolved
through a settlement agreement approved in June 2006.

Mr. Clark asserts that the SPhinX-Related Claims cannot stand as
independent claims against RCM to the extent that they are
identical to, or derivative of, claims that were expressly
released in the SPhinX Settlement.

Although appeals on SPhinX Settlement approval are pending, the
appellants have not sought a stay of those proceedings, and the
current value of the SPhinX-Related Claims is nil, Mr. Clark
tells Judge Drain.

Pursuant to the Order, each holder of the Pledged Collateral
Claims and the SPhinX-Related Claims will retain its claim for
distribution purposes, unless that claim is otherwise
disallowed.

The Order is without prejudice to the RCM Trustee's right to
object to any other claims in the Debtors' Chapter 11 cases, or
to further object to claims subject to the Motion, on any
grounds whatsoever.

                      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, 2007.  


REFCO: RCM Trustee Wants More Time to File List of Securities
-------------------------------------------------------------
Marc S. Kirschner, the Chapter 11 Trustee for Refco Capital
Markets, Ltd. estate, asks the U.S. Bankruptcy Court for the
Southern District of New York to extend to April 15, 2007, the
deadline for him to file a cumulative list of securities sold by
RCM between Oct. 1, 2006, and March 31, 2007.

The RCM Securities List will include details of sale price
received, method of sale used and commission paid, as well as a
report for the first quarter of 2007, which report is due to the
Court by April 15.

The RCM Trustee asserts that it would be detrimental to the RCM
stakeholders to publicly disclose the list of securities sold to
date because that disclosure may:

   (i) reveal market sensitive information about his liquidation
       strategy; and

  (ii) adversely affect the price of securities remaining in the
       portfolio.

The RCM Trustee anticipates that all of the RCM Securities will
have been substantially liquidated by the end of February 2007.

                      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, 2007.  




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


* BOLIVIA: Signing New Export Contract with Brazil
--------------------------------------------------
Yacimientos Petroliferos Fiscales Bolivianos, the state oil firm
of Bolivia, said in a statement that it has agreed to sign
within 120 days a new contract with Brazil to export gas to
Cuiaba in the latter's Mato Grosso state.

Business News Americas relates that the 120-day period
corresponds to an initial period of a maximum 60 days for
Yacimientos Petroliferos and Transbordes Gas Services to sign a
provisional accord and a subsequent period of a maximum 60 days
to sign a definitive contract to establish prices, volumes and
terms.

Cuiaba gets 1.2 million cubic meters of gas per day from a 630-
kilometer pipeline branching off from the 3,000-kilometer
Bolivia-Brasil gas pipeline at a price of US$1.09 per million
British thermal unit compared to the US$5 per million British
thermal unit price Bolivia negotiated with Argentina in 2006,
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
===========


AKER KVAERNER: Inks US$23-Million Deal with Atlantia Offshore
-------------------------------------------------------------
Atlantia Offshore Ltd. has awarded Aker Kvaerner a contract for
installation of a semi-submersible floating production unit for
the Thunder Hawk development system in the Gulf of Mexico.

Atlantia will be the client and owner of the FPU and Murphy
Exploration and Production Company will operate the platform.
The total contract value is around US$23 million.

The work, to be undertaken by the Aker Kvaerner unit Aker Marine
Contractors, comprises installation of the spread mooring
system, transportation and hook up of the FPU.

"This is an important milestone for Aker Marine Contractors and
we look forward to working with Atlantia towards a safe and
successful installation of the Thunder Hawk platform," Helge
Roraas, President of Aker Marine Contractors U.S. Inc. said.

The marine installation is planned to commence in the 2nd
quarter of 2008, using the offshore construction vessel, BOA Sub
C as main installation vessel.  The planning of the project will
commence immediately.

"This contract award confirms our strong position in the deep
water Gulf of Mexico market and provides the opportunity to
build strong relations with an important client," says Torgeir
Ramstad, President of Aker Marine Contractors.

The Thunder Hawk facility which will be based on Atlantia's deep
draft semi will be moored in 1800 meters water depth and
equipped to produce up to 60 000 barrels of oil and 70 million
standard cubic feet of gas per day.

The contract was booked in fourth quarter 2006.

                    About Aker Kvaerner

Headquartered in Lysaker, Norway, Aker Kvaerner ASA --
http://www.akerkvaerner.com/-- through its subsidiaries and   
affiliates, provides engineering and construction services,
technology products and integrated solutions.  The company has
operations in Brazil, Chile, China, India, Indonesia, Japan,
Malaysia, Singapore, South Korea, Thailand.

The Aker Kvaerner group is organized into two principal business
streams, namely Oil & Gas and E&C, each consisting of a number
of separate legal entities.

                        *    *    *

Moody's Investors Service, in April 2006, upgraded the ratings  
of Aker Kvaerner Oil & Gas Group and Aker Kvaerner AS, primarily  
to reflect the sustainable strong recovery in profitability and  
cash flow generation of the ring-fenced oil and gas group over  
the past two years, coupled with the clear reduction in senior  
debt, repaid from internally generated funds.

Ratings affected:

Aker Kvaerner Oil & Gas Group AS

   -- Corporate family rating: upgraded to Ba1 from Ba3

Aker Kvaerner AS

   -- Rating of the second priority lien notes due 2011:
      upgraded to Ba1 from Ba3.

Moody's said the outlook on all ratings is stable.


ALERIS INTERNATIONAL: Discloses Further Management Promotions
-------------------------------------------------------------
Aleris International, Inc., disclosed promotions as a result of
the continued growth and globalization of the company.

Scott A. Stewart has been promoted to Vice President, Global
Risk Management.  Mr. Stewart joined Aleris in September 2005 as
Director, Risk Management from Glencore Ltd. where he managed
trading, operations, contract negotiations, and energy risk
management for Glencore's aluminum plants, and managed aluminum
futures trading positions on the London Metals Exchange for
speculative and hedging purposes.

Edward L. Vargo has been promoted to Vice President, Internal
Audit.  Mr. Vargo joined Aleris in January 2005 as Director,
Internal Audit. Prior to joining Aleris, he worked at KPMG where
he managed the internal audit practice for the Cleveland office.  
Prior to joining KPMG, Mr. Vargo managed internal audit at
Lincoln Electric and prior to that worked for the General
Electric company and the Goodrich Corp.

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: Unit Won't Sell Stake in Companhia Vale do Rio
--------------------------------------------------------------
A spokesperson of Bradespar, Banco Bradesco SA's non-financial
holding, told Business News Americas that it has no plans to
sell its stake in Companhia Vale do Rio Doce.

According to Valor Economico, Banco Bradesco had hired Merrill
Lynch to draft a strategy to dissolve Bradespar and sell half
its stakes in Companhia Vale and CPFL Energia later this year.

However, the spokesperson told BNamericas, "The story has no
basis at all, not any."

Bradespar will hold on to its 21.22% stake in Valepar, Companhia
Vale's holding firm, BNamericas says, citing the spokesperson.

BNamericas underscores that Bradespar disclosed in August 2006
that it would transfer its 33% stake in VBC Energia, the holding
firm that controls CPFL Energia, to local industrial group
Votorantim and engineering firm Camargo Correa.

Banco Bradesco sold in November 2006 its 2.8% stake in Usiminas
to Votorantim and Camargo Correa for BRL219 million, according
to BNamericas.

Banco Bradesco's Chief Executive Officer Marcio Cypriano had
told BNamericas that the bank would continue to divest non-core
holdings.

                      About Bradespar

Bradespar was founded in 2000 to manage Banco Bradesco's non-
financial holdings.  Bradespar started with participations in
five firms, but has reduced its portfolio to two companies --
CPFL Energia and Companhia Vale do Rio Doce -- in the past two
years.

                   About Companhia Vale

Headquartered in Rio de Janeiro, Brazil, Companhia Vale do Rio
Doce -- http://www.cvrd.com.br/-- engages primarily in mining
and logistics businesses. It engages in iron ore mining, pellet
production, manganese ore mining, and ferroalloy production, as
well as in the production of nonferrous minerals, such as
kaolin, potash, copper, and gold.

                   About Banco Bradesco

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 NACIONAL: Allots BRL600MM for Digital Inclusion Program
-------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social SA said in
a statement that it has budgeted BRL600 million to support the
government-run digital inclusion program personal computers or
PCs for All, doubling the BRL300 million set aside for the
program last year.

Business News Americas relates that the PCs for All program is
the flagship project of the Brazilian government's digital
inclusion agenda.  It is aimed at helping people from
socioeconomic class C purchase up to a million computers at
affordable prices.

According to BNamericas, Banco Nacional provided BRL176 million
loans to buy 146,901 PCs since the program was launched in
September 2005.

To help speed up the purchasing process, manufacturers can apply
for loans to make the PCs that cost up to BRL1,400 and use Linux
software, while retailers can use the money to accumulate get
stocks of the computers, BNamericas notes.

The program has been renewed for another two years until the end
of 2008, Banco Nacional told BNamericas.

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

                        *    *    *

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

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

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


BANCO NACIONAL: Grants US$123 Mil. Financing to DaimlerChrysler
---------------------------------------------------------------
Banco Nacional Desenvolvimento Economico e Social aka BNDES
approved a US$123.5 million financing to DaimlerChrysler do
Brasil Ltda. for the export of 500 buses to Republic of Chile.

BNDES' financing was approved in the ambit of BNDES-exim Post-
Shipment (to commercialization), in supplier credit modality,
corresponding to 100% of the export amount.

The Brazilian vehicles will be directed to the passenger
transportation of corridor No. 5 of the Transantiago System, in
Santiago City.  The import enterprise is Buses Metropolitana, a
concessionaire of Corridor No. 5, which operates, so far, with
second-hand buses.  The fleet, however, will be replaced by
October 2008, with 500 new buses exported by Daimler Chrysler,
with BNDES' financing.

This operation contributes for Brazil's position consolidation
as an important Latin-American bus supplier, besides expanding
the country's presence in the international maintenance service
market.

Transantiago System was created to reformulate Santiago's urban
transportation system under a professional, integrated,
efficient and safety structure, which increases the number of
collective transport users.

Transantiago's operations started in October 2005.  Its full
operation is expected to start in February.  The system involves
a set of repairs in public ways, construction of special
corridors for buses and an operational and specific structure
for transportation services in large cities.

DaimlerChrysler do Brasil operates in the manufacturing of
trucks, bus and automobile chassis.  The enterprise has three
units:

   -- Juiz de Fora/MG (automobiles),

   -- Sao Bernardo do Campo/SP (trucks, chassis and bus/engine
      platforms) and

   -- Campinas/SP (parts and services).

In Sao Bernardo do Campo's facility, a product development
center is located that is certified by ISO-9001.

DaimlerChrysler do Brasil exported, in 2005, US$1.3 billion in
buses, trucks and engines to over 70 countries such as the
United States of America, Germany, Argentina, Chile, Mexico,
Ecuador, Egypt, Qatar and Iran, among others.

                        About BNDES

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

                        *    *    *

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

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

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



A full text-copy of the Underwriting Agreement with Bear,
Stearns & Co., Inc. & Lehman Brothers Inc. may be viewed at no
              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.


DAIMLERCHRYSLER: Gets US$123-Mil. Financing from Banco Nacional
---------------------------------------------------------------
Banco Nacional Desenvolvimento Economico e Social aka BNDES
approved a US$123.5 million financing to DaimlerChrysler do
Brasil Ltda. for the export of 500 buses to Republic of Chile.

BNDES' financing was approved in the ambit of BNDES-exim Post-
Shipment (to commercialization), in supplier credit modality,
corresponding to 100% of the export amount.

The Brazilian vehicles will be directed to the passenger
transportation of corridor No. 5 of the Transantiago System, in
Santiago City.  The import enterprise is Buses Metropolitana, a
concessionaire of Corridor No. 5, which operates, so far, with
second-hand buses.  The fleet, however, will be replaced by
October 2008, with 500 new buses exported by Daimler Chrysler,
with BNDES' financing.

This operation contributes for Brazil's position consolidation
as an important Latin-American bus supplier, besides expanding
the country's presence in the international maintenance service
market.

Transantiago System was created to reformulate Santiago's urban
transportation system under a professional, integrated,
efficient and safety structure, which increases the number of
collective transport users.

Transantiago's operations started in October 2005.  Its full
operation is expected to start in February.  The system involves
a set of repairs in public ways, construction of special
corridors for buses and an operational and specific structure
for transportation services in large cities.

DaimlerChrysler do Brasil operates in the manufacturing of
trucks, bus and automobile chassis.  The enterprise has three
units:

   -- Juiz de Fora/MG (automobiles),

   -- Sao Bernardo do Campo/SP (trucks, chassis and bus/engine
      platforms) and

   -- Campinas/SP (parts and services).

In Sao Bernardo do Campo's facility, a product development
center is located that is certified by ISO-9001.

DaimlerChrysler do Brasil exported, in 2005, US$1.3 billion in
buses, trucks and engines to over 70 countries such as the
United States of America, Germany, Argentina, Chile, Mexico,
Ecuador, Egypt, Qatar and Iran, among others.

                        About BNDES

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

                        *    *    *

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

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

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

                   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.


EMI GROUP: Axes Music Unit Chief; Unveils Restructuring Plan
------------------------------------------------------------
EMI Group Plc remains positive on the long-term trends for the
industry and in particular that there will be continued strong
demand for digital music.  However, to secure sustainable growth
in underlying profits and cash flow, EMI will re-align its
investment priorities and focus its resources in areas where it
is positioned to make the best and most certain returns.

This will include:

   -- de-layering the Group's management structure to allow a
      more streamlined approach, particularly within the
      developing digital landscape;

   -- investing and operating in territories and business areas
      where superior, secure returns can be generated, and
      reducing exposure to territories and business areas in
      which these conditions are not satisfied;

   -- continuing expansion of the Group's presence across the
      music value chain;

   -- extracting revenue and cost synergies between recorded
      music and music publishing;

   -- strengthening EMI's digital and consumer marketing
      capabilities;

   -- pursuing partnerships which allow EMI to extract further
      leverage from its operating infrastructure (e.g.  
      distribution and administration arrangements)

The Company believes that this will align EMI's business more
closely to its operating environment, allow a continuing strong
focus on artist and songwriter development, re-allocate
resources to attractive growth areas, increase the level and
certainty of overall return on investment, and significantly
improve margins and the generation of free cash flow.

               Board and Senior Management Changes

Alain Levy, who has been Chairman and Chief Executive Officer of
EMI Music since October 2001, is stepping down from the Board
and both he and David Munns, Vice Chairman of EMI Music, will be
leaving the Company with immediate effect.  The Board thanks
them both for their contribution to the business over the past
five years.

Eric Nicoli, who has been Executive Chairman of EMI Group since
July 1999, becomes Chief Executive Officer of EMI Group and, as
part of this role, takes direct responsibility for the
management of EMI Music, the Group's recorded music business.

John Gildersleeve, currently Non-executive Deputy Chairman of
EMI Group and Senior Non-executive director, becomes Non-
executive Chairman of EMI Group.

Martin Stewart continues as Chief Financial Officer of EMI Group
and, as part of this role, takes direct responsibility for the
management of the finance function of EMI Music.

                   Restructuring Program

As part of its focus on delivering higher and more certain
returns on investment, the Group will significantly reduce the
size of its cost base.  This cost saving plan is expected to
deliver GBP110 million of annual savings across the Group,
incremental to previously announced cost saving initiatives,
with over half of these savings being reflected in the financial
results for the year to March 31, 2008, and the full GBP110
million reflected in the financial results for the year to
March 31, 2009.

The significant majority of these cost savings will be achieved
through the elimination of fixed costs with a small proportion
resulting from a permanent reduction in the variable cost base.   
The initiatives will impact all regions in which EMI operates.   
The cost savings will be generated largely from EMI Music, with
the remainder from EMI Music Publishing.

Specific fixed cost saving initiatives will include the
reduction of front and back-office overhead and an increase in
shared services in both divisions and across all regions.  In
addition there will be a significant reduction in central
overheads at EMI Music and EMI Group.

The one-off cash cost of implementing the restructuring is
expected to be no more than GBP150 million.  EMI has secured
bank financing commitments with respect to both this entire
amount and the recently announced purchase of the outstanding
45% minority interest in its Japanese subsidiary Toshiba-EMI.

In the context of these restructuring initiatives, the Company
is reviewing its balance sheet.   This will be completed by 31
March 2007 and it is expected to result in a non-cash charge
being reported separately in the Group's 2006-2007 income
statement.

The cash flow generation of the business is expected to
strengthen significantly when the gains from the cost savings
are fully realized.  In this context, the Board will continue to
review the optimal capital structure for the Group.

                      Current Trading

EMI Music's second half performance to date, in terms of
revenues and profits, has been below prior expectations.   This
has resulted from weak market conditions, particularly over the
Christmas period, and lower than expected sales from EMI Music's
portfolio of second half releases to date.

EMI Music Publishing continues to perform in line with
expectations.

                           Outlook

EMI Music's second half financial performance to date combined
with the expectation of continuing weak market conditions, and
the expected significant disruption to the business from the
implementation of the restructuring initiatives outlined above,
has led to a change in the outlook for the Group for the
financial year ended March 31, 2007.  As a result, EMI Music's
full year revenues could decline, year on year, by around 6% to
10% on a constant currency basis.

The Group expects that disruption from the restructuring
initiatives will continue into the early months of the following
financial year, constraining revenue at EMI Music in the year to
March 31, 2008, but expects to see a significant improvement in
margins as cost savings are delivered.

                         About EMI

Headquartered in London, United Kingdom, EMI Group PLC --
http://www.emigroup.com/-- is the world's largest independent  
music company, operating directly in 50 countries and with
licensees in a further 20.  The group has operations in Brazil,
China and Hungary.  The group employs over 6,600 people.
Revenues in 2005 were near EUR2 billion and operating profit
generated was over EUR225 million.

At March 31, 2006, EMI Group's consolidated balance sheet
revealed GBP1.817 billion in total assets, GBP2.544 billion in
total liabilities and GBP726.6 million in shareholders' deficit.

                        *     *     *

As reported on Dec. 19, 2006, Standard & Poor's Ratings Services
affirmed its 'BB/B' long- and short-term corporate credit and
'BB' senior unsecured debt ratings on U.K.-based music major EMI
Group PLC.

The long-term and debt ratings were removed from CreditWatch,
where they had been placed with negative implications on
Nov. 28, 2006, when the group reported a takeover approach.  The
outlook is negative.

As reported on Nov. 27, 2006, that Moody's Investors Service
downgraded EMI Group plc's senior debt and guaranteed debt
ratings to Ba2 from Ba1.  At the same time Moody's assigned a
Ba2 Corporate Family Rating to EMI.  The downgrade is based on
Moody's expectation that EMI's debt protection measurements will
not improve near-term to a level commensurate with the Ba1
rating category.  Moody's said the rating outlook is now stable.


EMI GROUP: Fitch Says Poor Sales Resulted from Competing Media
--------------------------------------------------------------
Fitch Ratings says that poor sales of recorded music over the
holiday period are primarily the result of competing media and
pricing pressures.  This follows a statement by EMI Group plc
-- one of the four music majors -- that sales since
Sept. 30, 2006, have been below expectations.

"Early indicators of poor music sales over Christmas are really
no surprise," says Alex Griffiths, director in Fitch's European
TMT group.  "While music companies' release cycles do have an
impact, the release of the Wii and PS3 games consoles and a
growing market for the Xbox 360 hardware and software were
always likely to have a significant negative impact.  This
demand situation has been worsened by price pressures from DVDs,
where discounting is being used to drive volume increases."

EMI announced that poor sales since the half year, together with
an expectation that the market will remain weak, and some
disruption from an announced restructuring, could lead to
declines in its recorded music revenues of 6%-10% for the year
to March 31, 2007.  EMI is targeting GBP110 million ongoing cost
savings by Fiscal-Year 2008-2009, at a one-off cost of GBP150
million.

While EMI attributed part of its performance to its own release
schedule, a large part of the sales decline was believed to have
been due to the market, with falls in physical sales continuing
to exceed digital sales growth.  This is likely to be reflected
in difficult conditions for the other three music majors,
Universal Music group, Sony BMG and Bertelsmann, and Warner
Music Group, though Fitch notes the ability of some of these
players to grow in the past despite negative market trends.

EMI also stated in its announcement its intention to give
further consideration to its capital structure.  There may be an
opportunity for EMI to reduce its debt costs by securitizing its
music-publishing assets.  These possess many characteristics
that make them candidates for securitization, such as
historically very stable revenue streams from a highly diverse
portfolio.  Even in the face of a troubled recorded music
market, music-publishing groups have continued to show solid
results.

EMI's announcement of further restructuring reflects the
continuing revenue pressures in the industry, which, combined
with the rise of digital distribution, is changing the business
models of the major players.  Universal Music has begun selling
music direct to the public through its Internet presence, and
Fitch expects this practice to spread.  In the U.K., some of the
major supermarkets have begun dealing directly with the recorded
music majors, where previously wholesalers had been involved.


EMI GROUP: Moody's Downgrades Corporate Family Rating to Ba3
------------------------------------------------------------
Moody's Investors Service downgraded EMI Group plc's Corporate
Family and senior debt ratings to Ba3 from Ba2.  All ratings
remain under review for possible further downgrade.  Downgrade
and review follow the announcement that EMI:

   -- will incur up to GBP 150 million in incremental
      restructuring costs;

   -- has performed below its expectations during its financial
      year- to-date;

   -- has installed Eric Nicoli, hitherto chairman of the group
      as CEO of EMI Group and of EMI Recorded Music; and

   -- is reviewing its balance sheet.

In the light of the announcement, Moody's believes that EMI's
risk profile and debt protection measurements will no longer be
in line with the Ba2 rating category, for which Moody's had
amongst other things stipulated a ratio of Adj.RCF/ Adj. Net
Debt moving towards 10%.  The ongoing review reflects
uncertainties about the strategic direction and performance
potential of the company's recorded music business against the
backdrop of still struggling global markets and about possible
changes in the medium term balance sheet structure.

Moody's acknowledges that EMI has arranged bank financing to
fund the additional cash outflows from the new restructuring
programme and the recently announced purchase of the minority
interest in its Japanese subsidiary Toshiba EMI.

Against this backdrop, Moody's review will focus on:

   -- the details of year-to-date trading and the outlook
      for the remainder of the 2006/7 financial year;

   -- details of the restructuring programme, including its  
      sustainability and its funding;

   -- the company's operational and financing plans beyond the
      current financial year, including the potential for a  
      comprehensive debt restructuring; and

   -- the potential for renewed Private Equity interest in the
      company.

Ratings downgraded to Ba3 and under review for possible
downgrade are:

   EMI Group plc

   -- CFR and the ratings of the 8.25% GBP bonds due 2008 and
      the 8.625% Euro notes due 2013

   Capitol Records Inc.

  -- the rating of the 8.375% guaranteed notes due 2009.

Headquartered in London, United Kingdom, EMI Group PLC --
http://www.emigroup.com/-- is the world's largest independent   
music company, operating directly in 50 countries, including
Brazil, and with licensees in a further 20.  The group employs
over 6,600 people.  Revenues in 2005 were near EUR2 billion and
operating profit generated was over EUR225 million.


GOL LINHAS: Highlights Achievements in Six Years
------------------------------------------------
GOL Linhas Aereas Inteligentes marks its sixth anniversary of
operations.  The company, which took on the unprecedented
responsibility of popularizing air transportation in Brazil and
South America, celebrates this anniversary with some of the best
numbers in the history of Brazilian aviation.  

Over the last six years, GOL transported 55 million passengers;
including five million first time flyers.  GOL's current fleet
of 65 aircraft operates over 600 daily flights to 55
destinations, including seven international routes to five
countries in South America.  In December 2006, GOL had domestic
and international Brazilian market shares of 37.1% and 13.3%,
respectively.  The company's average load factor in 2006 was
74%, the highest in the industry, and GOL has been the most
punctual airline in Brazil for over 18 months.

The "GOL Effect" has been evident in Brazil's passenger
transportation market over the last six years:

   * average domestic fares have been reduced by over 25% --
     providing low-cost air travel for more Brazilian consumers;

   * average load factors on domestic flights are at their
     highest levels ever (above 70%); and

   * the number of first-time flyers increases year after year.

GOL's international expansion is one of highlights of its sixth
anniversary, as the company is one of the fastest growing
"international" airlines.  In 2006 alone, GOL increased its
operating capacity on South American international routes by
over 150%. In 2004, Argentina was the company's first
international destination; strong demand allowed GOL to expand
its services to a total of three Argentinean cities:

   -- Buenos Aires,
   -- Cordoba and
   -- Rosario.

Based on the success of these routes, the company increased the
number of international destinations: in 2005, GOL began flights
to Bolivia and, in 2006, the company started service to Chile,
Paraguay and Uruguay.  In February of this year, GOL will begin
operations to Peru and has plans to further increase it
operations in Latin America with a new route to Mexico later
this year.

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

                        *    *    *

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

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

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

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


GP INVESTMENTS: Acquires 32% Stake of Igaratinga for US$39.3 Mln
----------------------------------------------------------------
GP Investments, Ltd., acquired on Jan. 15, 2007, through
vehicles of the company's private equity fund, GP Capital
Partners III, LP, 32% of the total and voting capital of
Igaratinga Participacoes SA, now named Alphaville aka Newco, a
publicly held company in Sao Paulo, Brazil for US$39.3 million.

GP Investments acquired the participation in connection with the
transaction agreed on Dec. 11, 2006.  Newco will hold over 99%
of the total capital of USS Solucoes Gerenciadas Ltda. and each
of the companies Connectmed-CRC Consultoria, Administracao e
Tecnologia em Saude Ltda., and Gama Saude Ltda., which holds
over 99% of the total capital of Gama Odonto SA.

USS is the leader in the Brazilian assistance services industry,
with offerings for the auto, home and personal segments.  The
company's clients are mostly insurers, which sell assistance
services attached to insurance policies, as well as automakers
and credit card operators.

Together, Connectmed and Gama Saude are leaders in the Brazilian
healthcare administration industry.  Both companies' clients are
insurers and medium and large employers that offer health plans
to their clients/employees, taking on the underwriting risk, but
outsourcing to Connectmed and Gama Saude the management of the
physician and hospital network, as well as key back office
processes, such as the authorization of medical procedures and
claims processing and adjudication.  Gama Odonto offers dental
insurance.

The management of GP Investments expresses its enthusiasm about
the closing of this transaction, given that Newco represents an
excellent opportunity to expand the investment portfolio of GP
Investments.

GP Investments - http://www.gpinvestments.com/-- is a leading  
private equity player in Brazil.  The GP Investments' activities
consist of its core private equity business and its asset
management business, and its mission is to generate higher than
average long-term return to its investors and shareholders.  
Since its inception in 1993, GP Investments raised more than
US$1.5 billion from Brazilian and international investors, and
acquired more than thirty-five companies in ten different
sectors.  On May 2006, GP Investments concluded its Initial
Public Offering -- IPO, becoming the first listed private equity
company in Brazil.

                        *    *    *

Standard & Poor's Ratings Services assigned on Jan. 4, 2006, its
'B+' long-term counterparty credit rating to GP Investments Ltd.  
The outlook is stable.  At the same time, Standard & Poor's
assigned its preliminary 'B+' debt rating on the US$150 million
perpetual notes to be issued by GP Investments in January 2007.

As reported in the Troubled Company Reporter on Jan. 12, 2007,
Fitch assigned these ratings on GP Investments Ltd.:

   -- Foreign currency Issuer Default rating 'B'; and
   -- Intended issue of US$150 million of perpetual notes
      'B/RR4'.


ISA CAPITAL: Fitch Rates US$544 Million Sr. Secured Notes at BB
---------------------------------------------------------------
Fitch assigned a preliminary rating of 'BB' to ISA Capital do
Brasil SA's proposed issuance of up to US$554 million in senior
secured notes to be issued in two tranches.  Concurrently, Fitch
assigned a local and foreing currency Issuer Default Rating of
'BB' to ISA Capital do Brasil.  The Rating Outlook is Stable.

The notes will have a short- and medium-term tenor with a bullet
amortization.  The notes benefit from a six-month debt-service
reserve account.  The proceeds of the notes will be used to
repay a US$554 million bridge loan entered into by ISA Capital
do Brasil for the acquisition of Companhia de Transmissao de
Energia Eletrica Paulista in two phases during 2006 and early
2007.  The notes are structurally subordinate to CTEEP's debt.  
The notes are expected to be serviced using dividends from CTEEP
and refinanced at maturity.  The notes are secured by a first
priority pledge over the current and future CTEEP's shares owned
by ISA Capital do Brasil, which currently represent 37.4% of the
company's total capital and 89.4% of its common share.

ISA Capital do Brasil SA's ratings are based on the strong
credit quality of CTEEP, its sole source of revenue and only
operating asset.  CTEEP's strong credit quality stems from its
monopoly position, stable and predictable operational cash flow
generation, and its financially sound credit profile.  The
ratings also reflect the note holders' structural subordination
to CTEEP's obligations, the concession renewal risk and
refinancing risk.

CTEEP's monopoly position stems from its exclusive right to
provide electricity transmission services through 2015 and 2031.  
Furthermore, CTEEP's concession area lies in the state of Sao
Paulo, which accounts for one-third of Brazil's gross domestic
product and is a large consumer of electricity in the country.  
The company should also benefit from its strong competitive
position to participate in future bidding processes for new
transmission lines within its concession area.

CTEEP represents a stable and predictable cash flow generation
with a low business risk profile as an electric transmission
utility company.  CTEEP's tariff setting mechanism is
straightforward and with minor intervention from the regulator.  
CTEEP's tariffs are fixed, revised by the regulator every four
years and automatically adjusted by inflation every year.  
CTEEP's revenue is stable and exempt from volumetric risk. The
permitted annual revenue, which represented approximately 97% of
the company revenue during 2005, is based on the electricity
transmission assets available to users and not the volume of
transmitted electricity.

CTEEP's credit metrics are supportive of its holding company
credit ratings.  The operating asset credit metrics are
characterized by low leverage, or almost no financial debt, and
strong interest expense coverage.  EBITDA margin is healthy, yet
still presents room for improvement compared to peers in the
region.  Its healthy cash flow from operation has allowed the
company to finance its growth strategy and maintain low leverage
levels.  Although the operating company is expected to issue
debt to finance future investments, leverage is expected to
remain moderate.  As of year end 2006, the company presented a
very modest leverage level as measured by Total debt to EBITDA
of 0.3 times, and a solid interest expense coverage ratio as
measured by EBITDA to interest expense north of 30.0x. Going
forward, CTEEP's credit metrics are expected to remain strong
with leverage below 2.0x and interest coverage around 9.0x to
10.0x.

ISA Capital do Brasil's ratings also reflect the expectation of
a strong covenants package that, among other things, limits the
level of indebtedness to be incurred by CTEEP and sets a minimum
interest coverage ratio.  CTEEP's leverage level as measured by
total net debt to EBITDA is limited to be no greater than 3.0
times.  CTEEP's interest coverage ratio must be no less than
3.0x.  Although the covenants package limits CTEEP's leverage
level, the former is expected to remain below 2.0x.  In
addition, the issuer is not allowed to, under the covenants
package, declare or pay any dividends or make any distributions.

ISA Capital do Brasil, is a pure holding company organized under
the laws of Brazil formed on April 28, 2006.  The company's
revenues and principal sources of cash are derived from
dividends and other distributions in respect of shares in CTEEP.  
The company owns 89.4% of CTEEP's total issued and outstanding
common stock representing 37.46% of CTEEP's total capital stock.  
Interconexion Electrica SA ESP, an electricity transmission
company controlled by the government of Colombia, owns 99.99% of
ISA Capital do Brasil SA.  CTEEP is the largest electricity
transmission company in the State of Sao Paulo and the largest
privately owned transmission company in Brazil.


METSO OYJ: Inks Equipment Supply Deal with Japan Novopan
--------------------------------------------------------
Metso Panelboard, a unit of Metso Oyj, will deliver all the main
equipment for the new particleboard line of Japan Novopan
Industrial Co., Ltd. in Japan.  The new line is scheduled for
start-up in early 2008.  

The value of the order is not disclosed.  The order has been
booked in the order book for the fourth quarter of 2006.

Metso's delivery includes screens, gluing system with flake
metering and resin blending system, forming stations, press
outfeed line and process automation system.  Metso will also
supply the engineering services together with supervision of
installation and start-up.  The value of this type of delivery
is generally under EUR10 million.

The construction of the new particleboard line will begin in
spring/summer 2007 in Sakai, Osaka. The annual production
capacity will be about 250,000 cubic meters.

Japan Novopan is the largest particleboard manufacturer in Japan
with operations on two sites.  After this expansion project, the
company's combined annual production capacity of particleboard
will be in excess of 350,000 cubic meters.

                         About Metso

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

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

                        *     *     *

As reported on April 11, 2006, 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.


NET SERVICOS: Merrill Lynch Says Vivax Buy Is Good on All Fronts
----------------------------------------------------------------
US Investment Bank Merrill Lynch said in a report that Net
Servicos' acquisition of Vivax is attractive on all fronts,
BNamericas reports.

In December, Net Servicos closed a 37.5% minority stake in Vivax
from horizon Telecom International and intends to secure a
majority stake.  According to the report, Merrill Lynch projects
that to happen in the first quarter of this year.

Merrill Lynch further adds that when Net Servicos does acquire a
majority stake in Vivax, it will further boost the company's
leading position in the local pay TV market.  It is expected
that the acquisition will raise the company's market share to
45% and provide synergies of about BRL1.4 billion or US$651
million, BNamericas relates.

"We estimate that Net could cut Vivax's general and
administrative expenses by some 50% and that the increased scale
will result in a reduction in programming costs of between 5%
and 10%," BNamericas said, citing the Merrill lynch report.

Merrill Lynch further raised Net Servicos' end-2007 price
objective to BRL32 from BRL26 in 2006.  This is due to the
acquisition synergies and the company's position to benefit from
growing demand for local pay TV services.  Meanwhile, UBS
investment Research also increased its year-end 2007 price
target for Net Servicos to BRL32 from BRL29, BNamericas
continues.

Merrill Lynch said that some risks that Net Servicos may faced
are:

   -- failure to gain regulatory approval to acquire Vivax;

   -- integration risks;

   -- inability to execute synergies;

   -- threat that telecommunication companies may enter the
      video market;

   -- potential misalignment of shareholder interests;

   -- further increases in capex; and

   -- macro slowdown hat damages discretionary spending.

However, Merrill Lynch added that Net Servicos is in a position
to secure value from growth in demand for local pay TV services
in Brazil and UBS thinks that it is evidence enough that the
company's fourth quarter sales were strong and that it has kept
its 26% EBITDA margin guidance, BNamericas reports.
     
Headquartered in Sao Paulo, Brazil, NET Servicos de Comunicacao
-- http://Nettv.globo.com/NETServ/br/home/indexNet.jsp?id=1--
is the largest subscriber TV multi-operator in Brazil, as it
operates the NET brand in major cities, including operations in
the 4 largest cities: Sao Paulo, Rio de Janeiro, Belo Horizonte
and Porto Alegre.

NET also offers Broadband InterNet services through its NET
VIRTUA brand name.

                        *    *    *

Moody's America Latina assigned on May 22, 2006, a Baa2.br
Brazilian National Scale Rating and a B1 Global Local Currency
Rating to Net Servicos de Comunicacao S.A.'s BRL650 million
debentures due in 2011 issued in September 2005.  Concurrently,
Moody's Investors Service affirmed Net's B1 global local
currency scale corporate family rating.  Moody's said the
ratings outlook is stable.

                        *    *    *

As reported in the Troubled Company Reporter on Nov. 8, 2006,
Standard & Poor's Rating Services assigned its 'BB-' senior
unsecured debt rating to the proposed perpetual bonds (up to
US$150 million) to be issued by Brazil's largest cable pay-TV
operator, Net Servicos de Comunicacao S.A.  The proceeds will be
used primarily to fund additional investments in the company's
network and digital services.  NET's total debt amounted to
BRL650 million (approximately US$300 million) in September 2006.


PETROLEO BRASILEIRO: Talking with Consortium in Ceara Project
-------------------------------------------------------------
Brazilian mines and energy minister Silas Rondeau will monitor
negotiations between state oil firm Petroleo Brasileiro and a
consortium planning to construct the 1.5-million-ton-per-year
Ceara Steel project, the ministry said in a statement.

Tasso Jereissati, president of the Brazilian social democracy
party, told the AE-Setorial news agency that Petroleo Brasileiro
could become a partner in the Ceara Steel project.

According to AE-Setorial, Petroleo Brasileiro has made a
proposal to take part in the project, which other investors
support.

Business News Americas relates that the steel consortium
negotiating with Petroleo Brasileiro for the Ceara Steel project
is composed of:

           -- BNDES, which has 40% participation in the project;  
           -- Dongkuk Steel, with 34%;
           -- Danieli Steel, with 17%; and
           -- CVRD, with 9%.

The Ceara state government will participate in the talks, which
involve finalizing prices and volumes of natural gas shipments
to the steel mill, BNamericas notes.

The report says that Brazil's northeastern region is faced with
gas supply shortages, as local output is not enough to meet
demand.  There are also insufficient pipelines to transport the
fuel from other regions.

A source told BNamericas that Ceara Steel is one of the largest
industrial projects in the region that will depend on gas
supplies.

The mines and energy ministry said in a statement that the
deadline for parties to come to an accord is Feb. 28.  

According to BNamericas, Petroleo Brasileiro would supply
natural gas to fuel the plant, which will start operating in
2009.

The next meeting on the issue between technical parties is
Jan. 30, the ministry said in a statement.

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.

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

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

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

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


PETROLEO BRASILEIRO: Investing in Proinfa Renewable Projects
------------------------------------------------------------
Petroleo Brasileiro SA aka Petrobras is mulling to invest in
Brazil's power incentive program called Proinfa, a company
spokesperson told BNamericas.  Renewable projects under the
program include:

    -- wind projects;
    -- small hydroelectric projects; and
    -- biomass projects.

The company is still thinking over what project to invest in,
the spokesperson told BNamericas.

According to the same report, Proinfa grants incentives to
construct over 3GW of wind, biomass and small hydroelectric
projects.  These are expected to start operations in 2008.

Local reports say that Petrobras is on the way for building a
3MW wind power project in the Rio Grande municipality as local
environment authorities has permitted its construction.  The
project is not under Proinfa.

According to Petrobras' 2007-11 strategic investment plan, the
company has reserved about US$700 million to develop renewable
power projects with a combined capacity of 240MW.  For this
year, the company has allotted BRL500 million or US$232 million
for these kind of projects, BNamericas adds.

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

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

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

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

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


PROPEX INC: Moody's B2 CFR Changes Outlook Rating 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.
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, Moody's is 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:

   -- Ba3 (LGD3, 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;

   -- Caa1 (LGD5, 82%) rating on the US$150-million senior
      unsecured due 2012;

   -- B2 Corporate Family Rating;

   -- 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 12 months ending Sept. 30, 2006,
were US$646 million.


TK ALUMINUM: Provides Update on Liquidity Position
--------------------------------------------------
TK Aluminum Ltd., the indirect parent of Teksid Aluminum
Luxembourg S.a r.l., S.C.A., disclosed an update on the
liquidity situation, failure to comply with certain financial
covenants, continued discussions regarding additional liquidity
resources and non-payment of Senior Note interest.

The company's efforts to secure a bridge loan as previously
announced are continuing and it has executed a commitment
letter, subject to certain conditions, with one source.  In
addition to the Nemak transaction, negotiations for the sale of
the assets located in France, Germany and Italy are progressing.

              Liquidity and Covenants Compliance

The company announced today that both its senior and second lien
lenders have expressed their support for a waiver of the
previously announced defaults of certain non-financial covenants
under the Senior Credit Facility and Second Lien Credit
Facility.  However, the company will not be in compliance with
certain financial covenants under its Senior Credit Facility and
its Second Lien Credit Facility for the period ended
Dec. 31, 2006.  As a result, any available borrowings under the
Senior Credit Facility will not be permitted without agreement
from its lenders.  In addition, the senior and, subject to
certain limitations, second lien lenders have the ability to
exercise all of their rights thereunder, including requiring the
amounts outstanding under the Senior Credit Facility and Second
Lien Credit Facility to become due and payable.  The company is
in discussions with the lenders' agents to obtain waivers of
such defaults with a view to allowing it to complete the
divestiture process.

To improve its near term liquidity the company is exploring a
variety of options.  Management has obtained favorable terms
from key customers that include, among others, accelerated
payment terms and letters of credit to secure its aluminum
requirements.  In addition, the company has made progress in
securing a bridge loan and has executed a commitment letter for
bridge financing, subject to certain conditions, with one
source.  The company has also approached the agent for its
existing lenders to discuss the possibility of a bridge loan.  
The company has and continues to pay suppliers, factors and
vendors in the ordinary course of business, consistent with past
practices.

There can be no assurance that the company will ultimately be
successful in obtaining additional capital resources or that the
Nemak transaction will be consummated within the time period
necessary to provide the company with sufficient liquidity to
fund operations, or at all.

               Interest Payment on Senior Notes

In balancing its operating cash requirements, the company will
not make the EUR14.9 million payment of interest due on
Jan. 15, 2007 on its outstanding EUR240 million of 11 3/8%
Senior Notes due 2011.

Under the indenture, bondholders will be unable to declare an
event of default and accelerate the maturity of the Senior Notes
unless the non-payment of interest continues following the
expiration of a 30-day grace period or, during such period, the
lenders under the Senior Credit Facility or the Second Lien
Facility accelerate the maturity of their loans. However, other
remedies may be available.

                    Divestiture Process

On Nov. 2, 2006, the company had entered into a definitive
agreement to sell certain assets to Tenedora Nemak, S.A. de
C.V., a subsidiary of ALFA, S.A.B. de C.V. Under the terms of
the agreement, the company is to sell its operations in North
America (except for its lost-foam operations in Alabama, which
will be retained by the company), and its operations and
interests in South America, China and Poland.  As consideration
for the operations being purchased, the company will receive
US$495.9 million in cash, along with a synthetic equity interest
in the Nemak business post-closing.  The transaction, which is
expected to close during the first quarter of 2007, has been
approved by both the board of directors of TK Aluminum Ltd. and
by Nemak. Closing of the deal is subject to various conditions,
including the receipt by seller of certain consents and waivers
from the company's bondholders and other customary conditions,
including regulatory approvals.  On Nov. 30, 2006, the waiting
period under the Hart-Scott-Rodino Antitrust Improvements Act
was terminated in respect of the sale of the assets in the
United States.

On Dec. 13, 2006, the company executed a non-binding letter of
intent to sell to one or more affiliates of BAVARIA
Industriekapital AG all of the company's equity interests in its
subsidiaries located in France, Italy and Germany.  The
consummation of the transaction is subject to a number of
conditions, including execution of a definitive agreement,
regulatory approvals, completion of satisfactory due diligence,
and approval by the board of directors of the company of the
definitive agreement and all transactions contemplated thereby.

                        Tender Offer

The company is currently examining its options with respect to
the terms of the tender offer for the Senior Notes and related
consent solicitation and intends to recommence the offer on
terms and conditions to be determined.  A variety of factors,
including the deterioration of the automotive market,
unfavorable foreign exchange movements, longer lead time to
closure of the Nemak transaction and working capital and other
funding requirements for remaining European operations, have
adversely affected the amount of funds available for the
repurchase of our Senior Notes which was contemplated at the
time of the announcement of the Nemak transaction.  Accordingly,
the company expects that the amount available for any such
repurchase will represent a significant discount from par.

Headquartered in Turin, Italy, TK Aluminum Ltd. --
http://www.teksidaluminum.com/-- manufactures light metal   
castings for the automotive industry.  The company's core
products are cylinder heads and blocks, and transmission and
suspension components produced with a wide range of
technologies: semipermanent mold gravity casting, high-pressure
die casting, low pressure, precision sand core and lost foam.

The company also operates in France, Poland, U.S.A., Mexico,
Brazil, Argentina and China.

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 20, 2006,
Standard & Poor's Ratings Services lowered its long-term
corporate credit rating to 'CCC-' from 'CCC+' on Bermuda-
incorporated TK Aluminum Ltd., a manufacturer of aluminum auto
parts.


TK ALUMINUM: S&P Lowers Long-Term Corporate Credit Rating to SD
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
corporate credit rating on Bermuda-incorporated TK Aluminum
Ltd., a manufacturer of aluminum auto parts, to 'SD' from
'CCC-'.  It also lowered its long-term debt rating on the EUR240
million senior unsecured notes issued by Teksid Aluminum
Luxembourg Sarl, SCA and guaranteed by TKA to 'D'.

Aluminum Luxembourg Sarl, SCA and guaranteed by TKA to 'D' from
'C'.  At the same time, the ratings were removed from
CreditWatch, where they had been placed with developing
implications on Nov.  6, 2006, following TKA's announcement that
it had entered into a definitive agreement to sell some of its
assets to Tenedora Nemak SA de CV
     
"The downgrade follows TKA's default on the Jan. 15, 2007,
interest payment on its outstanding EUR?240 million notes
maturing in 2011," said Standard & Poor's credit analyst Barbara
Castellano.
     
TKA has stated that it will not have been in compliance with the
financial covenants on its senior and second-lien credit
facilities at Dec. 31, 2006 -- the likelihood of which it had
warned about in December.  The company is now negotiating to
obtain waivers on its lenders' right to limit the usage of the
lines and to require the immediate repayment of the amount
outstanding.
     
TKA is working on closing the sale of its operations in North
America, South America, China, and Poland to Tenedora Nemak, SA
de CV, which should occur in the first quarter of 2007.
     
"Notwithstanding the definitive agreement with Nemak, we see
some risks in the possible further delays in closing the
transaction," said Ms. Castellano.  "A number of agreements and
waivers are needed to complete the deal, and any further delay
in negotiations would complicate TKA's already extremely tight
liquidity situation."

Headquartered in Turin, Italy, TK Aluminum Ltd. --  
http://www.teksidaluminum.com/-- manufactures light metal    
castings for the automotive industry.  The company's core  
products are cylinder heads and blocks, and transmission and  
suspension components produced with a wide range of  
technologies: semipermanent mold gravity casting, high-pressure  
die casting, low pressure, precision sand core and lost foam.

The company also operates in France, Poland, U.S.A., Mexico,  
Brazil, Argentina and China.


UNIAO DE BANCOS: Joint Venture Paying Claims in Subway Collapse
---------------------------------------------------------------
Unibanco AIG -- Uniao de Bancos Brasileiros SA's joint venture
with the American International Group, Inc., aka AIG -- will pay
property claims related to last week's collapse of underground
metro works in Sao Paulo, Sao Paulo state urban transport
secretary Jose Luiz Portella told Agencia Estado.

A Unibanco AIG spokesperson confirmed to Business News Americas
that the firm provided coverage for the subway works.

Sao Paulo mayor Gilberto Kassab told Agencia Estado that the
city would help victims and people left homeless by the
accident.  However, Unibanco AIG would pay any added claims.

According Agencia Estado, federal prosecutors have launched a
probe into the incident and their findings will be examined by
the Sao Paulo city hall.

Hercules Fornero, an insurance broker and consultant, told
BNamericas, "If they find there was no bad faith, negligence or
any other intentional error, the insurer should pay.  One
insurer doesn't have the capacity to take on a risk of this
volume.  A claim like this can break an insurer.  Unibanco AIG
is certainly not alone in this policy.  A project of this size
is spread out among other insurers in the local and
international markets."

Geological instabilities caused the accident, BNamericas
relates, citing Consorcio Via Amarela, the consortium
responsible for the works.  The group also guaranteed a just
repayment for property damages resulting from the accident.

                About American International

American International Group, Inc., aka AIG is a holding company
that, through its subsidiaries, is engaged in a range of
insurance and insurance-related activities in the United States
and abroad.  AIG's primary activities include both general
insurance, and life insurance and retirement services
operations.  Other activities include financial services and
asset management.  It operates in three segments: General
Insurance, which provides property and casualty insurance both
domestically and abroad; Life Insurance & Retirement Services,
which provides insurance and retirement savings products both
domestically and abroad; Financial Services, which is engaged in
diversified financial products and services, including aircraft
and equipment leasing, capital markets transactions, consumer
finance and insurance premium financing, and Asset Management,
which includes a range of investment-related services and
investment products.

                   About Uniao de Bancos

Headquartered in Sao Paulo, Brazil, Uniao de Bancos Brasileiros
SA -- http://www.unibanco.com/-- is a full-service financial
institution providing a range of financial products and services
to a diversified individual and corporate customer base
throughout Brazil.  The company's businesses comprise segments:
Retail, Wholesale, Insurance and Pension Plans and Wealth
Management.  Uniao de Bancos and its associated companies
FinInvest, LuizaCred, PontoCred and Tecban (Banco 24 Horas)
offer a network composed of 17,000 points of service.  It also
counts on 7,580 automated teller machines and all 30 Hours'
products and services, including the telephone service and the
Internet banking.  The company's international network consists
of branches in Nassau and the Cayman Islands; representatives
offices in New York; banking subsidiaries in Luxembourg, the
Cayman Islands and Paraguay; and a brokerage firm in New York --
Unibanco Securities Inc.

                        *    *    *

As reported on Sept. 4, 2006, Moody's Investors Service upgraded
these ratings of Uniao de Bancos Brasileiros SA:

   -- long-term foreign currency deposits to Ba3 from Ba1; and

   -- long- and short-term global local currency deposit ratings
      to A1/Prime-1 from A3/Prime-2.

Moody's rating action was the direct result of the upgrade of
Brazil's country ceiling for foreign currency bonds and notes to
Ba2, from Ba3, as well as Brazil's country ceiling for foreign
currency bank deposits to Ba3, from B1, and the local currency
bank deposit ceiling to A1, from A3.


USINAS SIDERURGICAS: Eyes Over 8MM Tons Total Sales Volume
----------------------------------------------------------
Usinas Siderurgicas de Minas Gerais SA expects total sales
volume to be slightly above eight million tons this year,
Business News Americas reports, citing Deutsche Bank.

Deutsche Bank said that domestic shipments account for 70% of
the sales volume, BNamericas relates.

BNamericas underscores that Usinas Siderurgicas predicted total
sales volume of eight million tons for 2006.

Usinas Siderurgicas is estimated to have directed 67% of overall
shipments to Brazil last year, BNamericas says, citing Deutsche
Bank.

Deutsche Bank said in a report that the management of Usinas
Siderurgicas expects domestic demand for heavy plates to
increase 30% to 1.4 million tons this year, compared with last
year, mainly due to contract sales for the Gasene gas pipeline
project of some 430,000 tons over a 10-12 month period.

Usinas Siderurgicas, as the sole heavy plate producer in Brazil,
could see its market share increase in the flat steel segment to
53% in 2007, compared with the 52% last year, BNamericas states,
citing Deutsche Bank.

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

                        *    *    *

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


* BRAZIL: Signing New Gas Import Contract with Bolivia
------------------------------------------------------
Brazil has agreed to sign within 20 days a new contract with
Bolivia to import gas to Cuiaba, Matto Grosso, Yacimientos
Petroliferos Fiscales Bolivianos, the Bolivian state oil firm,
said in a statement.

Business News Americas relates that the 120-day period
corresponds to an initial period of a maximum 60 days for
Yacimientos Petroliferos and Transbordes Gas Services to sign a
provisional accord and a subsequent period of a maximum 60 days
to sign a definitive contract to establish prices, volumes and
terms.

Cuiaba gets 1.2 million cubic meters of gas per day from a 630-
kilometer pipeline branching off from the 3,000-kilometer
Bolivia-Brasil gas pipeline at a price of US$1.09 per million
British thermal unit compared to the US$5 per million British
thermal unit price Bolivia negotiated with Argentina in 2006,
BNamericas states.

                        *    *    *

As reported on Nov. 24, 2006, Standard & Poor's Ratings Services
revised its outlook on its long-term ratings on the Federative
Republic of Brazil to positive from stable.  Standard & Poor's
also affirmed these ratings on the Republic of Brazil:

   -- 'BB'for long-term foreign currency credit rating,
   -- 'BB+' for long-term local currency credit rating, and
   -- 'B' for short-term currency sovereign credit rating.




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


ANTARES REAL: Deadline for Proofs of Claim Filing Is on Jan. 26
---------------------------------------------------------------
Antares Real Estate Investment Corp.'s creditors are required to
submit proofs of claim by Jan. 26, 2007, to the company's
liquidators:

          Cereita Lawrence
          Janet Crawshaw
          P.O. Box 1109, Grand Cayman
          KY1-1102 Cayman Islands
          Tel: 345-914-7594
          Fax: 345-949-7634

Creditors who are not able to comply with the Jan. 26 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Antares Real's shareholders agreed on Dec. 6, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


ANTARES REAL: Shareholders to Gather for Jan. 26 Final Meeting
--------------------------------------------------------------
Antares Real Estate Investment Corp.'s final shareholders
meeting will be at 10:30 a.m. on Jan. 26, 2007, at:
          
          HSBC Financial Services Ltd.
          P.O. Box 1109, Grand Cayman
          KY1-1102, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

          John Cullinane
          Derrie Boggess
          Attn: Janet Crawshaw
          P.O. Box 1109, Grand Cayman
          KY1-1102 Cayman Islands
          Tel: 345-914-7594
          Fax: 345-949-7634


BALANCED HIGH-YIELD: Claims Filing Deadline Is on Jan. 27
---------------------------------------------------------
Balanced High-Yield Fund II Ltd.'s creditors are required to
submit proofs of claim by Jan. 27, 2007, to the company's
liquidator:

          Piccadilly Cayman Limited
          P.O. Box 10632 APO
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Jan. 27 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Balanced High-Yield's shareholders agreed on Dec. 19, 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:

          Ellen J. Christian
          Piccadilly Cayman Limited
          c/o BNP Paribas Bank & Trust Cayman Limited
          3rd Floor Royal Bank House
          Shedden Road, George Town
          Grand Cayman, Cayman Islands
          Tel: 345 945 9208
          Fax: 345 945 9210


BOERO LTD: Last Day to File Proofs of Claim Is on Jan. 27
---------------------------------------------------------
Boero Ltd.'s creditors are required to submit proofs of claim by
Jan. 27, 2007, to the company's liquidator:

          Condor Nominees Limited
          c/o Barclays Private Bank & Trust (Cayman) Limited
          4th Floor FirstCaribbean House
          25 Main Street, George Town
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Jan. 27 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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


COUTTS FINANCE: Proofs of Claim Filing Deadline Is on Jan. 26
-------------------------------------------------------------
Coutts Finance Co. (Cayman) Ltd.'s creditors are required to
submit proofs of claim by Jan. 26, 2007, to the company's
liquidator:

          Royhaven Secretaries Ltd.
          Coutts House, 1446 West Bay Road
          P.O. Box 707, George Town
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Jan. 26 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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

Parties-in-interest may contact:

          Judith Chatoo
          P.O. Box 707, George Town
          Grand Cayman, Cayman Islands
          Tel: 945-4777
          Fax: 945-4799


DEBORA INVESTMENTS: Final Shareholders Meeting Is on Jan. 26
------------------------------------------------------------
Debora Investments Ltd.'s final shareholders meeting will be on
Jan. 26, 2007, at:
          
          Smith Barney Private Trust Co. Ltd.
          CIBC Financial Centre, George Town
          Grand Cayman, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

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


DEBORA INVESTMENTS: Proofs of Claim Filing Deadline Is Jan. 26
--------------------------------------------------------------
Debora Investments Ltd.'s creditors are required to submit
proofs of claim by Jan. 26, 2007, to the company's liquidator:

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

Creditors who are not able to comply with the Jan. 26 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Deborah Investments' 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:

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


DEEP RIVER: Proofs of Claim Filing Is Until Jan. 27
---------------------------------------------------
The Deep River Master Fund's creditors are required to submit
proofs of claim by Jan. 27, 2007, to the company's liquidators:

          Jan Neveril
          Richard Gordon
          Maples Finance Limited
          P.O. Box 1093, George Town
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Jan. 27 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Deep River'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.


DIA RAILROAD: Shareholders to Convene for Jan. 25 Final Meeting
---------------------------------------------------------------
Dia Railroad Leasing Ltd.'s final shareholders meeting will be
on Jan. 25, 2007, at:
          
          3-1 Marunouchi 3-chome
          Chiyoda-ku, Tokyo, Japan

These agenda will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

          Ysuhisa Tsuruhashi
          Tatano Yuji
          3-1 Marunouchi 3-chome
          Chiyoda-ku Tokyo, Japan


EXIS INTEGRATED: Last Day for Proofs of Claim Filing Is Jan. 26
---------------------------------------------------------------
Exis Integrated International Fund Ltd.'s creditors are required
to submit proofs of claim by Jan. 26, 2007, to the company's
liquidators:

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

Creditors who are not able to comply with the Jan. 26 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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

Parties-in-interest may contact:

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


SAGABEA INVESTMENTS: Claims Filing Deadline Is on Jan. 27
---------------------------------------------------------
Sagabea Investments Ltd.'s creditors are required to submit
proofs of claim by Jan. 27, 2007, to the company's liquidator:

          C.I. Directors Ltd.
          P.O. Box 1110, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 949 7212
          Fax: (345) 949 0993

Creditors who are not able to comply with the Jan. 27 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Sagabea Investments' shareholders agreed on Dec. 4, 2006, for
the company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


SERENGETI FINANCIAL: Proofs of Claim Must be Filed by Jan. 27
-------------------------------------------------------------
Serengeti Financial Ltd.'s creditors are required to submit
proofs of claim by Jan. 27, 2007, to the company's liquidator:

          C.I. Directors Ltd.
          P.O. Box 1110, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 949 7212
          Fax: (345) 949 0993

Creditors who are not able to comply with the Jan. 27 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Serengeti Financial's shareholders agreed on Dec. 4, 2006, for
the company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


SHIHARAI DAIKOU: Creditors Must File Proofs of Claim by Jan. 27
---------------------------------------------------------------
Shiharai Daikou Gaisha's creditors are required to submit proofs
of claim by Jan. 27, 2007, to the company's liquidators:

          Mark Wanless
          Liam Jones
          Maples Finance Jersey Limited
          2nd Floor, Le Masurier House
          La Rue Le Masurier
          St. Helier, Jersey JE2 4YE

Creditors who are not able to comply with the Jan. 27 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Shiharai Daikou's shareholders agreed on Dec. 7, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


SIRIUS FINANCE: Creditors Must File Proofs of Claim by Jan. 26
--------------------------------------------------------------
Sirius Finance Corp.'s creditors are required to submit proofs
of claim by Jan. 26, 2007, to the company's liquidators:

          Janet Crawshaw
          Sylvia Lewis
          P.O. Box 1109, Grand Cayman
          KY1-1102 Cayman Islands
          Tel: 345-914-7594
          Fax: 345-949-7634

Creditors who are not able to comply with the Jan. 26 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Sirius Finance's shareholders agreed on Dec. 6, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


SIRIUS FINANCE: Calls Shareholders for Final Meeting on Jan. 26
---------------------------------------------------------------
Sirius Finance Corp.'s final shareholders meeting will be at
10:00 a.m. on Jan. 26, 2007, at:
          
          HSBC Financial Services Ltd.
          P.O. Box 1109, Grand Cayman
          KY1-1102, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

          John Cullinane
          Derrie Boggess
          Attn: Janet Crawshaw
          P.O. Box 1109, Grand Cayman
          KY1-1102 Cayman Islands
          Tel: 345-914-7594
          Fax: 345-949-7634


SITKA INVESTMENTS: Last Day for Claims Filing Is on Jan. 27
-----------------------------------------------------------
Sitka Investments Ltd.'s creditors are required to submit proofs
of claim by Jan. 27, 2007, to the company's liquidators:

          Stuart K. Sybersma
          Ian A.N. Wight
          Deloitte, Cayman Islands
          P.O. Box 1787, George Town
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Jan. 27 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Sitka Investments' shareholders agreed on Dec. 1, 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:

          Nicole Ebanks
          Deloitte
          P.O. Box 1787, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 949 7500
          Fax: (345) 949 8258


PHOENIX-MISTIC: Proofs of Claim Filing Deadline Is on Jan. 27
-------------------------------------------------------------
Phoenix-Mistic 2002-1 CBO, Ltd.'s creditors are required to
submit proofs of claim by Jan. 27, 2007, to the company's
liquidators:

          Guy Major
          Jan Neveril
          Maples Finance Limited
          P.O. Box 1093, George Town
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Jan. 27 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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


PINE HILLS: Creditors Must Submit Proofs of Claim by Jan. 27
------------------------------------------------------------
Pine Hills Holdings Inc.'s creditors are required to submit
proofs of claim by Jan. 27, 2007, to the company's liquidators:

          Mark Wanless
          Liam Jones
          Maples Finance Jersey Limited
          2nd Floor, Le Masurier House
          La Rue Le Masurier
          St. Helier, Jersey JE2 4YE

Creditors who are not able to comply with the Jan. 27 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Pine Hills' shareholders agreed on Dec. 13, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


TESCO AQUA: Creditors Have Until Jan. 26 to File Proofs of Claim
----------------------------------------------------------------
Tesco Aqua (2LP) Ltd.'s creditors are required to submit proofs
of claim by Jan. 26, 2007, to the company's liquidator:

          Tesco Corporate Services Ltd.
          22 Grenville Street, St Helier
          Jersey, JE4 8PX, Channel Islands

Creditors who are not able to comply with the Jan. 26 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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

Parties-in-interest may contact:

          Daniel LeBlancq
          22 Grenville Street, St Helier
          Jersey, JE4 8PX, Channel Islands
          Tel: 01534 609639


TESCO BLUE: Proofs of Claim Filing Deadline Is on Jan. 26
---------------------------------------------------------
Tesco Blue (2LP) Ltd.'s creditors are required to submit proofs
of claim by Jan. 26, 2007, to the company's liquidators:

          Tesco Corporate Services Ltd.
          22 Grenville Street, St Helier
          Jersey, JE4 8PX, Channel Islands

Creditors who are not able to comply with the Jan. 26 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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

Parties-in-interest may contact:

          Daniel LeBlancq
          22 Grenville Street, St Helier
          Jersey, JE4 8PX, Channel Islands
          Tel: 01534 609639


TESCO RED: Deadline for Proofs of Claim Filing Is on Jan. 26
------------------------------------------------------------
Tesco Red (2LP) Ltd.'s creditors are required to submit proofs
of claim by Jan. 26, 2007, to the company's liquidator:

          Tesco Corporate Services Ltd.
          22 Grenville Street, St Helier
          Jersey, JE4 8PX, Channel Islands

Creditors who are not able to comply with the Jan. 26 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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

Parties-in-interest may contact:

          Daniel LeBlancq
          22 Grenville Street, St Helier
          Jersey, JE4 8PX, Channel Islands
          Tel: 01534 609639


TR INVESTMENT: Last Day for Proofs of Claims Filing Is Jan. 27
--------------------------------------------------------------
TR Investment Inc.'s creditors are required to submit proofs of
claim by Jan. 27, 2007, to the company's liquidators:

          Mark Wanless
          Liam Jones
          Maples Finance Jersey Limited
          2nd Floor, Le Masurier House
          La Rue Le Masurier
          St. Helier, Jersey JE2 4YE

Creditors who are not able to comply with the Jan. 27 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

TR Investment's shareholders agreed on Dec. 13, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


ZEBEDEE CAPITAL: Last Day for Claims Filing Is on Jan. 26
---------------------------------------------------------
Zebedee Capital International Ltd.'s creditors are required to
submit proofs of claim by Jan. 26, 2007, to the company's
liquidators:

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

Creditors who are not able to comply with the Jan. 26 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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

Parties-in-interest may contact:

          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




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


ARAMARK: Moody's Holds Ba3 Rating on Proposed US$4.15-Bil. Loan
---------------------------------------------------------------
Moody's Investors Service affirmed the Ba3 rating on Aramark
Corp.'s proposed US$4.15 billion secured term loan and the B3
rating on US$1.78 billion of proposed senior notes.  The upsized
term loan and senior note offerings are intended to replace a
US$570 million senior subordinated note offering that was
cancelled.

Concurrently, Moody's withdrew the B3 rating on the US$570
million of proposed senior subordinated notes.  Pro-forma for
the aforementioned capital mix changes, Moody's affirmed the 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.

Rating actions:

   * Aramark

      -- Affirmed US$600 million secured revolving credit
         facility due 2013, Ba3 to LGD3, 36% from LGD3, 32%

      -- Affirmed US$4.15 billion secured term loan due 2014,
         Ba3 to LGD3, 36% from LGD3, 32%

      -- Affirmed US$250 million secured synthetic letter of
         credit facility due 2013, Ba3 to LGD3, 36% from LGD3,
         32%

      -- Affirmed US$1.78 billion senior unsecured notes due
         2015, B3 to LGD5, 86% from LGD5, 80%

      -- Affirmed Corporate Family Rating at B1

      -- Affirmed Probability of Default Rating at B1

      -- Withdrew US$570 million senior subordinated notes due
         2016 rated at B3 LGD6, 93%

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

Rating actions:

   * Aramark

      -- Affirmed Corporate Family Rating, B1

      -- Affirmed Probability of default rating, B1

      -- Affirmed senior unsecured shelf registration rated
         B3, LGD6, 96%

      -- Affirmed senior subordinated shelf registration rated
         B3, LGD6, 97%

Ratings actions:

   * Aramark Services

      -- Affirmed US$250 million senior unsecured notes due
         2012, B3, LGD6, 96%

      -- Affirmed senior unsecured shelf registration B3, LGD6,
         96%

      -- Affirmed senior subordinated shelf registration rated
         B3, LGD6, 97%

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

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

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

Aramark Corp., headquartered in Philadelphia, Pennsylvania, is
one of the largest U.S. providers of food and support services
to a variety of end markets across the country, including
businesses, the educational and healthcare sectors, sports and
entertainment venues and correctional institutions.  The company
also operates the second largest uniform and career apparel
rental services and sales business in the U.S., catering to a
diversified client portfolio through an extensive national
service network.  For the twelve-month period ending Sept. 30,
2006, revenues were approximately US$11.6 billion.  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
===============


INDUSTRIAS METALURGICAS: Unit Building Floodgates for Porce III
---------------------------------------------------------------
Impsa Andina, Industrias Metalurgicas Pescarmona's Colombian
unit, will build floodgates for Porce III hydroelectric project,
project operator Empresas Publicas de Medellin said in a
statement.

According to Empresas Publicas' statement, Impsa Andina and
Italy's ATB-Riva Calzoni won US$16 million worth of contracts to
construct the floodgates.

Business News Americas relates that Impsa Andina has 27 months
to build floodgates for the adduction tunnel and 23 months for a
separate contract to construct floodgates and shielding for the
sluiceway.  Meanwhile, ATB-Riva Calzoni has 33 months to build
radial floodgates.

Empresas Publicas is developing the 660-megawatt Porce III
project.  The project is expected to begin operations in 2010 or
2011, Business News Americas reports.

                   About Pescarmona Group

Pescarmona Group of Companies is a multinational group with
presence in different business areas such as hydro electrical
power generation and equipment, wind power generation and
equipment, port systems, automobile parts, control systems,
environmental services and insurance, among others.  PGC employs
more than 6,000 people and operates in 27 countries in the five
continents.

                        *    *    *

As reported on Dec 15, 2006, Standard & Poor's rates Industrias
Metalurgicas Pescarmona's debts:

   -- Obligaciones Negociables Series 9 for US$4,200,000, raBB-;

   -- Obligaciones Negociables Series 2, D;

   -- Obligaciones Negociables Series 10 for US$9,600,000,
      raBB-;

   -- Obligaciones Negociables Series 11 for US$11,359,000,
      raBB-; and

   -- Obligaciones Negociables Series 12 for US$700,000, raBB-.




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


* DOMINICAN REPUBLIC: Issuing 50-Yr. Bonds to Cover Deficit
-----------------------------------------------------------
The Dominican Republic government intends to issue 50-year bonds
to make up for the Central Bank's accumulated deficit of DOP202
billion in 2005, DR1 reports.

The same report says that Price WaterHouseCoopers did the
accounting of the figures.  The accounting firm indicated that
under article 82 of the Monetary Law 183-02 of Nov. 21, 2002,
the government should cover the Central Bank's deficit starting
a year after the legislation became effective.

When the Monetary Law became effective on Dec. 3, 2002, the
accumulated deficit was DOP39.1 million, which according to
Listin Diario, was due to losses dating back to bank's
foundation in 1947 until the 2003 banking crisis.

                        *    *    *

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


PETROECUADOR: Inks Strategic Alliance with Turkish Petroleum
------------------------------------------------------------
Ecuador's state-oil firm, Petroecuador, said in a statement that
it has signed a strategic alliance deal with Turkish Petroleum
International, its Turkish counterpart.

Business News Americas relates that the agreement will last for
five years.  It will automatically renew itself for equal
periods unless either of the two firms wishes to withdraw.

Petroecuador and Turkish Petroleum will create an executive
committee to identify, evaluate and define joint scientific
investigations, technological services and business
opportunities, BNamericas states.

Petroecuador, according to published reports, is faced with
cash-problems.  The state-oil firm has no funds for maintenance,
has no funds to repair pumps in diesel, gasoline and natural gas
refineries, and has no capacity to pay suppliers and vendors.
The government refused to give the much-needed cash alleging
inefficiency and non-transparency in Petroecuador's dealings.


* ECUADOR: Inaugurates San Francisco Hydroelectric Project Unit
---------------------------------------------------------------
Ecuador's presidential Web site posted that the government has
installed the first 115-megawatt unit of the San Francisco
hydroelectric project.

Business News Americas relates that Odebrecht constructed the
US$302-million plant, which uses the river Pastaza's flow
downstream from the 157-megawatt Agoyan plant through a series
of underground tunnels and caverns.

According to BNamericas, the underground part represented over
90% of the works.

The report says that when the two 115-megawatt units are
operational, the plant will provide yearly savings of 100
million gallons of over diesel that costs over US$300 million.

BNamericas notes that Ecuadorean generator Hidroagoyan will run
the plant.

Alstom and VA Tech supplied the turbines, while BNDES helped
fund the bulk of the project, BNamericas states.

                        *    *    *

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.




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


* EL SALVADOR: Needs New Law to Regulate Hydrocarbons Sale
----------------------------------------------------------
Julio Villagran, the president of the oil products distributors'
association of El Salvador, told Business News Americas that the
nation needs a new law to regulate the sale of hydrocarbons.

According to BNamericas, Mr. Villagran said that the law dates
back to 1970.  Since then, piecemeal changes have been made to
the legislation that prevents the consolidation of the sector's
regulatory framework.

Mr. Villagran told BNamericas that though the nation's pricing
structure operates in a free market, the law does not include
important aspects like sanctions for price-setting abuses.  The
government's consumer rights ombudsman reported in 2006 that oil
firms did not adjust prices to reflect drops in oil prices.

Yolanda de Gavidia, El Salvador's minister of economy, disclosed
that a review has started of the law governing storage,
transport and distribution of oil products, BNamericas notes.

An official from the ministry's hydrocarbons department told
BNamericas that a consultant has started to study the
legislation for the drafting of a new law, which would cover all
aspects of the sector, including pricing and the promotion of
exploration and production and refining in El Salvador, along
with natural gas.

The Salvadorian government aims to present a draft of the new
bill to legislators this year, BNamericas states, citing the
official.

                        *    *    *

As reported on Aug. 11, 2006, Standard & Poor's ratings services
affirmed its 'BB+' long-term and 'B' short-term sovereign credit
rating on the Republic of El Salvador.  S&P said the outlook
remains stable.

El Salvador's country ceiling has been upgraded to BBB- from BB+
by Fitch Ratings.




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


BANCO DE COMERCIO: Central Bank Suspends Firm's Operations
----------------------------------------------------------
Banco de Comercio said in a statement that Banguat, the
Guatemalan central bank, has permanently suspended its
operations.

As reported in the Troubled Company Reporter-Latin America on
Jan. 16, 2007, a Banguat spokesperson said that Guatemala will
suspend operations at Banco de Comercio, as requested by the
latter.  Banco de Comercio asked the Guatemalan banking
superintendent to intervene on Jan. 11.  

Willy Zapata the bank superintendent of Guatemala, told
reporters that Banco de Comercio became unsustainable after it
overextended its loan portfolio.

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

Banco de Comercio's executives quadrupled normal lending of
about US$5 million a month in November 2006 and doubled normal
lending in December 2006, BNamericas relates, citing Mr. Zapata
said.

Mr. Zapata told BNamericas that his office would investigate
recent loans at Banco de Comercio to determine whether rules
were broken and whether the case should be referred to
Guatemala's public prosecutor.

According to the Banco de Comercio statement, Banguat appointed
a board that will be responsible for transferring deposits from
Banco de Comercio to a bank, as well as transferring its assets
to a trust.

Banco Industrial will take over Banco de Comercio's accounts.  
All deposits in local and foreign currency, which are held by
Banco de Comercio will be covered, Superentendencia de Bancos,
Guatemala's banking regulator, said in a statement.

Mr. Zapata told Reuters that Banco de Comercio, the second
Guatemalan bank to collapse in four months, is unlikely to
significantly shake confidence in the banking system.  He said,
"Bank confidence is measured in levels of deposits people have
in the banking system.  As of Dec. 31 the banking system had
more than on Oct. 31."

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


* GUATEMALA: Central Bank Suspends Comercio's Operations
--------------------------------------------------------
Banguat, the Guatemalan central bank, has permanently suspended
Banco de Comercio's operations, the latter said in a statement.

As reported in the Troubled Company Reporter-Latin America on
Jan. 16, 2007, a Banguat spokesperson said that Guatemala will
suspend operations at Banco de Comercio, as requested by the
latter.  Banco de Comercio asked the Guatemalan banking
superintendent to intervene on Jan. 11.  

Willy Zapata the bank superintendent of Guatemala, told
reporters that Banco de Comercio became unsustainable after it
overextended its loan portfolio.

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

Banco de Comercio's executives quadrupled normal lending of
about US$5 million a month in November 2006 and doubled normal
lending in December 2006, BNamericas relates, citing Mr. Zapata
said.

Mr. Zapata told BNamericas that his office would investigate
recent loans at Banco de Comercio to determine whether rules
were broken and whether the case should be referred to
Guatemala's public prosecutor.

According to the Banco de Comercio statement, Banguat appointed
a board that will be responsible for transferring deposits from
Banco de Comercio to a bank, as well as transferring its assets
to a trust.

Banco Industrial will take over Banco de Comercio's accounts.  
All deposits in local and foreign currency, which are held by
Banco de Comercio will be covered, Superentendencia de Bancos,
Guatemala's banking regulator, said in a statement.

Mr. Zapata told Reuters that Banco de Comercio, the second
Guatemalan bank to collapse in four months, is unlikely to
significantly shake confidence in the banking system.  He said,
"Bank confidence is measured in levels of deposits people have
in the banking system.  As of Dec. 31 the banking system had
more than on Oct. 31."

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

                        *    *    *

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+




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


AIR JAMAICA: Losses Royal Caribbean Cruise Shipping Contract
------------------------------------------------------------
Air Jamaica has lost a cruise shipping contract with Royal
Caribbean Cruises Ltd., the Jamaica Observer reports.

Sources told The Observer that Royal Caribbean had proposed to
Air Jamaica officials for the airline to become the official
carrier for the former's more than 10,000 Jamaican workers.

However, Air Jamaica reportedly did not act on the offer, which
was subsequently snapped up by American Airlines, The Observer
relates, citing the sources.  

A source from Royal Caribbean told The Observer, "The offer was
for Air Jamaica to transport all vacationing Jamaican workers
and workers from other Caribbean islands at the expense of the
cruise line.  This we thought would have been a good opportunity
for the airline to fill many of its empty seats considering that
the workers go on vacation all year round.  The offer was made
some time last year and I can tell you for a fact that American
Airlines didn't need much convincing to grab the deal.  I cannot
comment on the exact dollar value of the contract but let's say
that this was worth millions."

Steve Richardson, a Royal Caribbean employee, commented to The
Observer that people were at first puzzled when they learnt of
the arrangement.  He said, "I was asking myself why the
Caribbean workers, especially Jamaicans, were traveling only on
American Airlines.  The cruise line is responsible for
purchasing our round-trip tickets, usually from Miami, so we
have no say in the matter.  It was only recently that I was made
aware that Air Jamaica was to be blamed for this.  As a
Jamaican, I can't help but wonder what is really happening with
our national carrier."

This was just one of the many mistakes Air Jamaica committed
since the government resumed control of the airline, The
Observer notes, citing Raymond Townsend, a Jamaican worker.

" I still cannot believe that we have to fly American and not on
our national carrier (Air Jamaica)," Mr. Townsend commented to
The Observer.

                    About Royal Caribbean

Royal Caribbean Cruises Ltd. -- http://www.royalcaribbean.com  
-- is a global cruise company that operates Royal Caribbean
International and Celebrity Cruises with a combined total of 29
ships in service and six under construction.  The company also
offers unique land-tour vacations in Alaska, Canada and Europe
through its cruise-tour division.

                   About American Airlines

American Airlines, Inc. -- http://www.AA.com/-- American Eagle,
and the AmericanConnection regional airlines serve more than 250
cities in over 40 countries, including Uruguay and Argentina,
with more than 3,800 daily flights.  The combined network fleet
numbers more than 1,000 aircraft.  American Airlines, Inc. and
American Eagle are subsidiaries of AMR Corp.

                     About Air 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.


SUGAR COMPANY: Number of Bids for Sugar Factories Increases
-----------------------------------------------------------
Pre-qualification bids for the five sugar factories of the Sugar
Company of Jamaica has increased to nine, Radio Jamaica reports,
citing the All-Island Jamaica Cane Farmers Association.

The Sugar Company has put up these assets for sale:

          -- Frome in Westmoreland,
          -- Monymusk in Clarendon,
          -- Bernard Lodge in St. Catherine,
          -- Long Pond and Hampden in Trelawny, and
          -- the Duckenfield estate in St. Thomas.

As reported in the Troubled Company Reporter-Latin America on
Nov. 24, 2006, the Sugar Company reportedly received several
offers for its five sugar factories since it decided to extend
the deadline for the submission of proposals from investors.  
However, the government was disappointed with the proposals it
received and decided to extend the deadline for submissions
until the end of December.  

The Jamaican government then further extended the bidding period
due to lack of interest by investors.  The government only
received expressions of interest from:

         -- Appleton Estates, which is owned by distillers Wray
            and Nephew Limited;

         -- Brazil's Aracatu Group;

         -- Brazil's Coimex; and

         -- India's Damphur.

The Sugar Enterprise Team, which is overseeing the divestment of
the factories, is assessing the bids, Radio Jamaica states,
citing Allan Rickards, the president of the Farmers Association.

Sugar Company of Jamaica registered a net loss of almost US$1.1
billion for the financial year ended Sept. 30, 2005, 80% higher
than the US$600 million reported in the previous financial year.
Sugar Company blamed its financial deterioration to the
reduction in sugar cane production.


* JAMAICA: Central Bank Reports US$1.1-Billion Loss
---------------------------------------------------
The Jamaican central bank, Bank of Jamaica posted a US$1.1
billion loss as of Dec. 27, 2006, Radio Jamaica reported.

The same report says that this is better than the US$2.7 billion
loss incurred in 2005.  The bank has reported losses in the past
three years due primarily to the continued stability in the
exchange rate market.

                        *    *    *

On May 26, 2006, Moody's Investors Service upgraded Jamaica's
rating under a revised foreign currency ceiling:

   -- Long-term foreign currency rating: Ba3 from B1 with
      stable outlook.




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


ADVANCED MARKETING: Wants to Employ Richards Layton as Counsel
--------------------------------------------------------------
Advanced Marketing Services Inc. and its debtor-affiliates seek
the authority of the United States Bankruptcy Court for the
District of Delaware to employ Richards, Layton & Finger, P.A.
as their local bankruptcy counsel, nunc pro tunc to
Dec. 29, 2006.

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 filing of the bankruptcy case, 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).  Suzzanne S. Uhland, Esq., Austin K.
Barron, Esq., and Alexandra B. Feldman, Esq., at O'Melveny &
Myers, LLP, represent the Debtors.  Chun I. Jang, Esq., Mark D.
Collins, Esq., Paul Noble Heath, Esq., at Richards, Layton &
Finger, P.A., are the Debtors' local counsel.  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,
2007.  (Advanced Marketing Bankruptcy News, Issue No. 2;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


GENERAL MOTORS: Eyes Purchase of Stake in Malaysia's Proton
-----------------------------------------------------------
General Motors Corp. has expressed interest in buying a stake in
Malaysian carmaker Proton Holdings Bhd., Soraya Permatasari and
Angus Whitley write for Bloomberg.  Reports say GM could offer
more than MYR10 for each Proton share.

Nik Azhar Abdullah, who oversees about US$684 million at Avenue
Asset Management Sdn. in Kuala Lumpur, told Bloomberg that GM
can use Malaysia as an Asian platform in connection with its
expansion to China, India and other Asian emerging markets.  
According to Malaysian Automotive Association, Proton held 24%
of Malaysia's car market as of September 30.

GM's Shanghai-based spokesman Rob Leggat has disclosed that GM
held talks with Proton.  However, Faridah Idris, a spokeswoman
at Proton, declined to comment.  In November 2000, GM held talks
with Proton about a deal in Malaysia but the discussions did not
result in any partnership.

According to Bloomberg, Proton, which has suffered low profits
in the past seven years, is seeking a new partner to stem losses
following the end of its 21-year partnership with Mitsubishi
Motors Corp. in March 2004.

Proton disclosed a MYR250.3 million loss in the quarter ended
Sept. 30, 2006, compared to a MYR154.3 million loss for the same
period in 2005.

Malaysia's Second Finance Minister Nor Mohamed Yakcop told
reporters that separate discussion are also ongoing between
Volkswagen AG and PSA Peugeot Citroen, which could lead to the
sale of a stake in Proton.

                 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 ELEKTRA: Names Carlos Septien as Chief Executive Officer
--------------------------------------------------------------
Grupo Elektra, S.A. de C.V.'s board of directors has renewed the
group's top management to consolidate its leadership in Mexico
and guarantee solid and sustained growth in Latin America.

Carlos Septien has served as CEO of Banco Azteca -- a Grupo
Elektra company -- since its launch in 2002.  In four years, Mr.
Septien has positioned Banco Azteca as one of the most important
in Mexico in terms of distribution infrastructure and
performance of the most relevant banking indicators.

"Carlos Septien has demonstrated solid leadership and
unparalleled determination to generate dynamic growth in
multiple environments," said Ricardo B. Salinas, Chairman of the
Board of Grupo Elektra. "I am confident that his ability to
conceive and administer high-growth companies with world class
service will generate even greater strength in our operations."

Mr. Septien replaces Javier Sarro, who served as CEO of Grupo
Elektra since 2000, and who will head up the international
expansion of the Group, which will greatly intensify in the near
future.

"I welcome the challenge to build on the high standards
established under the administration of Javier Sarro," said
Carlos Septien.  "With the existing solid business and the
strong working team Javier put together, I will focus on the
positioning of our company in Mexico and Latin America under the
criteria of maximum profitability."

In the operation of Grupo Elektra, Carlos Septien has the
support of two seasoned executives with track records for
generating superior results, Josue Garza and Juan Carlos Alonso.  
Mr. Garza is General Director of Geographic Operations,
responsible for ensuring maximum quality in points of sale to
offer excellence in customer service. Mr. Alonso is General
Director of Products, Services and Supply, with the mandate of
selecting the most adequate merchandise and proper inventories,
as well as offering superior post-sales service.

"I am committed to supply Grupo Elektra with the products and
services that satisfy our clients to the highest degree, as well
as operating in the most efficient manner to generate
outstanding revenue and EBITDA," said Mr. Septien.  "This is a
'win-win' situation for Grupo Elektra and the millions of
families who get access to affordable products throughout the
countries where we operate, while contributing to increase their
living standards."

Carlos Septien has over 25 years of experience with financial
institutions.  He holds a BS in industrial engineering from the
Universidad Iberoamericana, as well as an MBA from Purdue
University.

Grupo Elektra -- http://www.grupoelektra.com.mx-- sells retail  
goods and services through its Elektra, Salinas y Rocha, Bodega
de Remates and Elektricity stores and over the Internet.  The
Group operates more than 1,000 stores in Mexico, Guatemala,
Honduras, Peru and Panama.  Grupo Elektra also sells and markets
its consumer finance, banking and financial products and
services through approximately 1,400 Banco Azteca branches
located within its stores, as a stand-alone, and in other
channels in Mexico and Panama.  Banking and financial services
include loans, electronic money transfer services, extended
warranties, demand deposits, pension-fund management, insurance,
and credit information services.

Grupo Elektra is divided mainly in two divisions: retail and
financial.  The Company's retail division is divided in two
geographical areas: Mexico, where three store formats are
operated, and Latin America (Guatemala, Honduras and Peru),
where the Elektra store format is operated only and credit is
still granted through the commercial division.  Grupo Elektra's
financial division, which only operates in Mexico, includes
Banco Azteca, a bank that offers financial services to Mexico 's
mass market; Afore Azteca, a retirement fund manager; and
Seguros Azteca, a new insurance company.

                        *    *    *

As reported by Troubled Company Reporter on May 27, 2005, Fitch
Ratings affirmed and withdrew the 'BB-' international scale
foreign and local currency ratings of Grupo Elektra, SA de CV,
Fitch has withdrawn the ratings in consistency with Fitch's
policies due to the pay down of all of the company's dollar-
denominated bonds.

Fitch also affirmed Elektra's national scale short term rating
of 'F2(mex)' and would continue to follow the company on the
national scale.


HOME PRODUCTS: Receives Court Approval for US$60 Mil. DIP Loan
--------------------------------------------------------------
The Honorable Christopher S. Sontchi of the U.S. Bankruptcy
Court for the District of Delaware authorized Home Products
International Inc. on Jan. 11 to borrow up to US$60 million
under a debtor-in-possession debt facility, the Associated Press
reports.

The DIP loan provides up to US$11.5 million of in new financing
to fund the Debtor's bankruptcy case.  Majority of the US$60-
million loan is allotted as payment for Bank of America.

Home Products filed for bankruptcy protection about a month
after it failed to make a US$5.6-million interest payment due to
bondholders, the AP reports.  

Home Products blamed its financial troubles on increasing raw
materials prices, specifically for plastic resin.  AP discloses
that the company listed assets of US$172.2 million and debts of
US$217.4 million in its bankruptcy filing.

A hearing to consider approval of the Disclosure Statement
explaining the Debtor's plan is slated for Jan. 30, 2007.  

                     Terms of the Plan

AP relates that under the company's proposed Chapter 11 plan,
bondholders, who are owed US$122.2 million, will control 95% of
the reorganized company.  

The reorganized Home Products will issue US$30 million in new
bonds to fund its exit from bankruptcy.  Third Avenue Management
LLC, Home Products largest bondholder, will backstop 85% of the
debt offering.  

AP reports that the company's existing shares will be canceled.  
Current shareholders will get 5% of shares in the new company.

                    About Home Products

Headquartered in Chicago, Illinois, Home Products International,
Inc. -- http://www.hpii.com/-- designs, manufactures, and  
markets ironing boards, covers, and other high-quality, non-
electric consumer houseware products.  The Debtor's product
lines include laundry management products, bath and shower
organizers, hooks, hangers, home and closet organizers, and food
storage containers.  Their products are sold under the HOMZ
brand name, and are distributed to hotels, discounters, and
other retailers such as Wal-Mart, Kmart, Sears, Home Depot, and
Lowe's.  The company has operations in Mexico.

The company and its affiliate, Home Products International-North
America, Inc., filed for chapter 11 protection on Dec. 20, 2006
(Bankr. D. Del. Case Nos. 06-11457 and 06-11458).  Eric D.
Schwartz, Esq., at Morris, Nichols, Arsht & Tunnell, represents
the Debtors.  When the Debtors filed for protection from their
creditors, they listed estimated assets between US$1 million and
US$100 million and debts of more than US$100 million.


JABIL CIRCUIT: Completes Tender Offer for Taiwan Green Point
------------------------------------------------------------
Jabil Circuit, Inc., completed the previously announced tender
offer by one of its wholly owned subsidiaries to acquire up to
100% of the outstanding shares of Taiwan Green Point Enterprises
Co., Ltd. for TWD109 per share.  As of Jan. 12, 2007,
approximately 261 million shares of stock were acquired,
representing over 97.6% of Taiwan Green Point's outstanding
shares.  The tender offer expired as scheduled and was not
extended.  The total amount paid for the tendered shares was
approximately US$871 million, based on current exchange rates.  
The entire purchase for the shares was borrowed under Jabil's
US$1.0 billion unsecured bridge credit agreement.

It is intended that the remaining Taiwan Green Point shares will
be acquired through the merger of Taiwan Green Point into
Jabil's wholly owned subsidiary as per the merger agreement
signed and announced on Nov. 22, 2006, provided that certain
closing conditions are met.

These conditions include the approvals from the Taiwan Stock
Exchange and the Financial Supervisory Commission and completion
of the delisting process.  These conditions are expected to be
met in April 2007.  Formal approval of the merger by Taiwan
Green Point's shareholders is not required because over 90
percent of Taiwan Green Point's outstanding shares were acquired
through the tender offer.  The remaining shareholders will
receive NT$109 in cash for their shares at the closing of the
merger.

Approximately 30,000 Taiwan Green Point employees will join
Jabil, including the current management team.  The Green Point
name will be retained and will operate as an independent
business within Jabil. Jabil and Taiwan Green Point management
will jointly market their integrated services.

Citigroup Global Markets Inc. acted as the financial advisor to
Jabil in this transaction, and Holland & Knight LLP assisted by
Tsar & Tsai acted as Jabil's legal counsel on the transaction.

Jabil Circuit, Inc. (NYSE:JBL) -- http://www.jabil.com/-- is an   
electronic product solutions company providing comprehensive
electronics design, manufacturing and product management
services to global electronics and technology companies.  Jabil
Circuit has more than 50,000 employees and facilities in 20
countries, including Brazil, Mexico, Europe and Asia.

                        *    *    *

Standard & Poor's Ratings Services placed a BB+ preliminary
rating on Jabil Circuit's US$1.5 billion senior and subordinated
debts on Aug. 19, 2005.


MAGNA INT'L: Sees Plant Closures & Consolidations in 2007
---------------------------------------------------------
Magna International Inc. will restructure its operations through
plant closings and consolidations in order to remain profitable,
Tony Van Alphen at the Toronto Star reports.

Magna president Mark Hogan disclosed the restructuring plan at
the Auto Analysts of New York Detroit Auto Conference.  However
the Toronto Star says Mr. Hogan did not provide details on job
cuts or estimate reductions for this year.

The current plight of the North American auto industry has
negatively impacted Magna's operations.  According to Mr. Van
Alphen, Magna's outlook for growth in 2007 contrasts with the
optimistic forecasts it had delivered in prior years.

Magna expects consolidated sales to be between US$22.9 billion
and US$24.2 billion for the full year 2007, based on full year
2007 light vehicle production volumes of approximately 15.5
million units in North America and approximately 15.6 million
units in Europe.  The company sees full year 2007 complete
vehicle assembly sales to be between US$3.4 billion and US$3.7
billion.

Full year 2007 spending for fixed assets will be in the range of
US$850 million to US$900 million, the company disclosed.

The company hopes to stem revenue loss by securing more
contracts from Asian manufacturers and reducing its dependence
on General Motors, Ford and DaimlerChrysler.  According to Mr.
Van Alphen, Magna is working to increase its sales to Asian
manufacturers to 10% to 15% by 2010.

Headquartered in Aurora, Ontario, Magna International Inc. --
http://www.magnaint.com/-- designs, develops and manufactures  
automotive systems, assemblies, modules and components, and
engineer and assemble complete vehicles, primarily for sale to
original equipment manufacturers of cars and light trucks in
North America, Europe, Asia and South America.  The company has
approximately 83,000 employees in 228 manufacturing operations
and 62 product development and engineering centers in 23
countries.  The company has manufacturing operations in Mexico.


SONIC CORP: Moody's Withdraws Low-B Corporate Ratings
-----------------------------------------------------
Moody's Investors Service withdrew its corporate ratings and
outlook on Sonic Corp. after 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.

Ratings withdrawn:

   -- Ba3 corporate family rating;

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

   -- Ba3, LGD3, 34% on the US$675 million senior secured term
      loan maturing in 2013;

   -- Ba3, LGD3, 34% on the US$150 million senior secured
      revolver maturing in 2011; and,

   -- SGL-2 Speculative Grade Liquidity rating.

Sonic Corp., headquartered in Oklahoma City, Oklahoma, operates
and franchises the largest chain of drive-in restaurants in the
United States.  As of Nov. 30, 2006, the company owned, operated
and franchised over 3,200 restaurants in 33 states and Mexico
with significant presence in the Southern and Midwestern United
States.  Revenues for fiscal 2006 totaled approximately
US$693 million.


VISTEON CORP: Sees Challenging 2007 But Improved 2008 Production
----------------------------------------------------------------
Visteon Corp. revealed last week that it expects a challenging
2007 but forecast an improvement in 2008.  The company said it
will focus on its restructuring efforts and cash flow
management.

The company said it expects to have lower production on
platforms it supplies to Ford Motor Corp., Renault SA, Peugeot
S.A., and Nissan Motor Co. Ltd. in North America.  It expects
production increases for Ford in Europe, Hyundai Motor Co. Ltd.,
and Kia Motors Corp.

Visteon also disclosed that it won US$1 billion in new contracts
for products from:

   -- North America:

      a. General Motors Corp. for electronics, interiors, and
         climate,

      b. Ford Motor for electronics and climate,

      c. DaimlerChrysler AG for electronics, interiors, climate,
         and lighting, and

      d. Other Asian Original Equipment Manufacturers for
         interiors,

   -- Europe:

      a. Volkswagen for electronics,
      b. Peugeot for interiors and electronics,
      c. General Motors for interiors, and
      d. Ford Motor for climate, electronics, and interiors,

   -- Asia Pacific:

      a. Mazda for climate,
      b. Hyundai and Kia for climate and interiors,
      c. General Motors for climate and interiors, and
      d. Ford Motor for climate.

                         Liquidity

The company expects to use free cash flow in 2007 and 2008, with
positive figures in 2009.  The company further says that it does
not have significant debt maturities until 2010.

At the end of 2006, it expects to have a cash balance of US$1
billion, 70% of which comes from U.S. and Europe sales.

                     About Visteon Corp.

Headquartered in Van Buren Township, Mich., Visteon Corp.
(NYSE: VC) -- http://www.visteon.com/-- is a global automotive
supplier that designs, engineers and manufactures innovative
climate, interior, electronic and lighting products for vehicle
manufacturers, and also provides a range of products and
services to aftermarket customers.  With corporate offices in
the Michigan (U.S.); Shanghai, China; and Kerpen, Germany; the
company has more than 170 facilities in 24 countries, including
Mexico, and employs approximately 50,000 people.

At Sept. 30, 2006 the Company's balance sheet showed total
assets of US$6.721 billion and total liabilities of US$6.823
billion resulting in a total shareholders' deficit of US$102
miilion.  Total shareholders' deficit at Dec. 31, 2005 stood at
US$48 million.

                        *    *    *

As reported in the Troubled Company Reporter on Sept. 13, 2006,
Standard & Poor's Ratings Services has lowered its long-term
corporate credit rating on Visteon Corp. to 'B' from 'B+' and
its short-term rating to 'B-3' from 'B-2'.  These actions stem
from the company's weaker-than-expected earnings and cash flow
generation, caused by vehicle production cuts, inefficiencies at
several plant locations, sharply lower aftermarket product
sales, continued pressure from high raw material costs, and
several unusual items that will impact 2006 results.

As reported in the Troubled Company Reporter on Nov. 24, 2006,
Moody's Investors Service has downgraded Visteon Corporation's
Corporate Family Rating to B3 from B2, changed the ratings
outlookto stable from under review for possible downgrade and
affirmed the company's liquidity rating of SGL-3.


VITRO SAB: S&P Raises Long-Term Corporate Credit Rating to B
------------------------------------------------------------
Standard & Poor' Ratings Services raised its long-term corporate
credit rating on Mexico-based glass manufacturer Vitro SAB de CV
to 'B' from 'B-', and assigned its 'B' senior unsecured debt
rating to Vitro's proposed US$750 million notes, due 2012 and
2017.
     
At the same time, Standard & Poor's raised its long-term
corporate credit and senior secured debt ratings on the
company's glass container manufacturing subsidiary, Vitro
Envases Norteamerica, SA de CV aka Vena, to 'B' from 'B-'.
     
The senior unsecured debt ratings on Vitro's US$225 million
notes, due 2013, and Servicios y Operaciones Financieras Vitro
SA de CV's US$250 million notes, due 2007, were also raised to
'CCC+' from 'CCC'.
    
The outlook on Vitro and Vena is stable.
     
The rating actions follow Vitro's announcement of the proposed
bond issue, and a tender offer for Vena's senior secured
guaranteed bonds, due 2011.  The proceeds of the transaction
will be used to refinance the bulk of debt at the holding and
operating company levels.
    
"The rating action reflects our expectation that the proposed
issue and tender offer will be completed, and that the
transactions will improve Vitro's liquidity through a manageable
maturity schedule," said Standard & Poor's credit analyst Jose
Coballasi.  "It also reflects our expectation of continued
improvement in the company's key financial ratios."

The rating on the proposed notes reflects the guarantee of
Vitro's key subsidiaries, Vena and Vimexico SA de CV, and an
expected reduction in subsidiary liabilities and secured debt,
which mitigates the structural subordination of holding company
creditors.  On issuance of the notes, the holders of Vitro's
senior unsecured notes, due 2013, will be entitled to the
guarantee of Vitro's key subsidiaries and, as a result, the
rating on the notes will be raised to 'B' from 'CCC+'.

Standard & Poor's expects Vitro to post funds from operations to
total debt of about 15% going forward, and free operating cash
generation to turn positive by 2008.

"A strong performance relative to our expectations could lead us
to raise the ratings," said Mr. Coballasi.  "On the other hand,
failure to issue the proposed bonds would lead us to lower the
ratings.  Any long-term trend or action that compromises Vitro's
ability to deliver a financial performance in line with our
expectations could also lead to a negative rating action."


VITRO ENVASES: S&P Places B Rating on Proposed US$750-Mil. Notes
----------------------------------------------------------------
Standard & Poor' Ratings Services raised its long-term corporate
credit rating on Mexico-based glass manufacturer Vitro SAB de CV
to 'B' from 'B-', and assigned its 'B' senior unsecured debt
rating to Vitro's proposed US$750 million notes, due 2012 and
2017.
     
At the same time, Standard & Poor's raised its long-term
corporate credit and senior secured debt ratings on the
company's glass container manufacturing subsidiary, Vitro
Envases Norteamerica, SA de CV aka Vena, to 'B' from 'B-'.
     
The senior unsecured debt ratings on Vitro's US$225 million
notes, due 2013, and Servicios y Operaciones Financieras Vitro
SA de CV's US$250 million notes, due 2007, were also raised to
'CCC+' from 'CCC'.
    
The outlook on Vitro and Vena is stable.
     
The rating actions follow Vitro's announcement of the proposed
bond issue, and a tender offer for Vena's senior secured
guaranteed bonds, due 2011.  The proceeds of the transaction
will be used to refinance the bulk of debt at the holding and
operating company levels.
    
"The rating action reflects our expectation that the proposed
issue and tender offer will be completed, and that the
transactions will improve Vitro's liquidity through a manageable
maturity schedule," said Standard & Poor's credit analyst Jose
Coballasi.  "It also reflects our expectation of continued
improvement in the company's key financial ratios."

The rating on the proposed notes reflects the guarantee of
Vitro's key subsidiaries, Vena and Vimexico SA de CV, and an
expected reduction in subsidiary liabilities and secured debt,
which mitigates the structural subordination of holding company
creditors.  On issuance of the notes, the holders of Vitro's
senior unsecured notes, due 2013, will be entitled to the
guarantee of Vitro's key subsidiaries and, as a result, the
rating on the notes will be raised to 'B' from 'CCC+'.

Standard & Poor's expects Vitro to post funds from operations to
total debt of about 15% going forward, and free operating cash
generation to turn positive by 2008.

"A strong performance relative to our expectations could lead us
to raise the ratings," said Mr. Coballasi.  "On the other hand,
failure to issue the proposed bonds would lead us to lower the
ratings.  Any long-term trend or action that compromises Vitro's
ability to deliver a financial performance in line with our
expectations could also lead to a negative rating action."




===========
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SOLO CUP: Fitch Puts B- Issuer Default Rating, Outlook Negative
---------------------------------------------------------------
Fitch Ratings initiated ratings for Solo Cup Co.:

    -- Issuer default rating B-;

    -- Senior secured first lien credit facility B+/Recovery
       Rating 2;

    -- Senior secured second lien credit facility CCC+/RR5; and

    -- Senior subordinated notes CCC/RR6.

The Rating Outlook is Negative.  Around 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, 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 reflects
the secondary claim to assets and the allocation of concession
payments to improve recovery.  The recovery on the subordinated
notes 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 US$147.5
million and total leverage of 7.8 times.  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, which start at 9.75x and
decline every three months this year to 7.25x by Dec. 31.  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 US$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.


* PANAMA: Banana Exports Recover After Black Sigatoka Crisis
------------------------------------------------------------
Banana exports in Panama are in recovery after enduring a strong
crisis that was prompted by banana disease Black Sigatoka,
flooding in plantations and strikes, Fresh Plaza reports.

The same report continues that total exports for 2006 amounted
to 22,066,000 boxes for US$115.8 million compared, a 14.4%
increase from that of 2005.  Exports from the Atlantic coast
experienced the strongest recovery with a total of 15 million
boxes, which is 26% more than in 2005.

Meanwhile, figures from the west coast are still in the negative
with exports of 7,045,000 boxes, a 4.6% decrease from that of
2005, Fresh Plaza continues.

The independent banana exporters are the ones greatly affected
with the crisis.  Bananeras Nacionales SA and Lia did not have
any exports in 2006, Fresh Plaza relates.

According to National Banana Direction, there was a high demand
for Panamanian bananas against good prices, especially from
European importers who were asking for fruit once again.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Dec. 14, 2006, Fitch Ratings affirmed the Republic of Panama's
long-term foreign currency Issuer Default Rating of 'BB+'.  
Fitch also affirmed the sovereign's long-term local currency IDR
of 'BB+', the short-term foreign currency IDR of 'B' and the
country ceiling of 'BBB+'.  Fitch said the rating outlook is
stable.




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IRON MOUNTAIN: S&P Rates Proposed EUR175 Mil. Senior Notes at B
---------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' rating to
Iron Mountain Inc.'s proposed EUR175 million 6.75% senior
subordinated notes due 2018.   

Proceeds from the proposed debt issuance will be used to repay  
other debt, including borrowings under Iron Mountain Inc.'s
senior credit facilities, and for general corporate purposes.

Standard & Poor's affirmed all existing ratings, including the  
'BB-' corporate credit rating.  

The outlook is stable.  

Boston-based Iron Mountain had about US$2.6 billion of debt  
outstanding as of Sept. 30, 2006.

"The ratings reflect Iron Mountain's relatively high debt  
leverage, limited debt capacity for large acquisitions, and  
aggressive financial policies supporting its growth strategies,"  
said Standard & Poor's credit analyst Andy Liu.  

"These factors are only partially offset by the company's
leading position as the world's largest records management
company and its reasonably stable growth from existing and new
customer accounts."

Iron Mountain provides warehouse storage for paper-based files,  
management of digital files, and other, complementary services.

Its Latin American operations are located in Argentina, Brazil,
Chile, Mexico and Peru.


* PERU: Minister Starts Up Two Transmission Lines in Arequipa
-------------------------------------------------------------
Juan Valdivia, Peru's mines and energy minister, has started up
two transmission lines in the rural areas in Arequipa,
BNamericas reports.

According to the same report, the first of the transmission
lines is a 60-kilovolt Majes-Corire Chuquibabma line and its
related substations.  This line is projected to incite economic
growth in the area.  Meanwhile, the second is a 138-kilovolt
Majes-Camana line and substation, which is expected to decrease
by an average 48% the power bills for about 54,500 people and to
assist the agro-industrial growth in the area.

Minister Valdivia told BNamericas that he hopes to attain 99%
power coverage in Peru, which currently has 78% power
infrastructure.

                        *    *    *

On May 30, 2005, Fitch Ratings affirmed Colombia's ratings as:

      -- Long-term foreign currency 'BB';
      -- Country ceiling 'BB';
      -- Local currency 'BBB-';
      -- Short-term 'B'.

Fitch said the Rating Outlook is Stable.


* PERU: Perupetro To Launch Exploration Auction of 18 Blocks
------------------------------------------------------------
Perupetro senior promotions coordinator Winston Wusen disclosed
that the state hydrocarbons promotions agency intends to launch
an auction on Jan. 23, 2007, for the exploration of 18 blocks,
BNamericas reports.  The publication of bidding rules is found
on the agency's Web site.

Mr. Wusen told Bnamericas that Perupetro may start accepting
bids in June.  The bidding rules are not yet completed.

The company in Houston will present on Feb. 2 the studies
conducted by Perupetro on 10 blocks and also studies by
geological consulting firm Gustavson Associates on the remaining
8 blocks, BNamericas says.

Perupetro's succeeding presentations will be in London on March
26 and in Calgary on a later date.

Mr. Wusen told Bnamericas that if and when everything goes as
planned in the awarding of the blocks, and in carrying out
environmental studies, the winners of the tender may begin
exploration on the blocks by 2008.

                        *    *    *

On May 30, 2005, Fitch Ratings affirmed Colombia's ratings as:

      -- Long-term foreign currency 'BB';
      -- Country ceiling 'BB';
      -- Local currency 'BBB-';
      -- Short-term 'B'.

Fitch said the Rating Outlook is Stable.




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


ALLIED WASTE: James P. Zeumer to Lead Corp. Communication Effort
----------------------------------------------------------------
Allied Waste Industries, Inc., hired James P. Zeumer, as Senior
Vice President, Public Affairs, Communications & Investor
Relations.  Mike Burnett, who had previously overseen these
activities, continues with the company in his primary role as
Senior Vice President, Treasurer.     

Mr. Zeumer brings more than 20 years of broad financial and
corporate communications experience, most recently serving for
the past nine years as Vice President of Investor and Corporate
Communications for Pulte Homes, Inc.  Prior to Pulte Homes, Mr.
Zeumer held roles of increasing responsibility with Ply Gem
Industries, ICF Kaiser Engineers and Alcide Corp.

"Jim brings important skills in support of our goal to increase
visibility and positive awareness among key stakeholders
including our customers, our investors and our employees," said
Pete Hathaway, Executive Vice President and Chief Financial
Officer.  "This addition to our senior management team will
allow Mike Burnett to focus his full time efforts on our
treasury and risk management functions."

Mr. Zeumer earned his Bachelor of Science in Marketing from the
University of Connecticut and his MBA in Finance from George
Washington University.  Mr. Zeumer will office out of the new
Allied Waste headquarters and Operations Support Center in
Phoenix, AZ.

Ed Evans, Executive Vice President and Chief Personnel Officer
added, "Jim will have a significant impact on increasing
Allied's brand recognition and support the Company's efforts as
a responsible corporate leader in the communities we serve
across the nation."

Based in Scottsdale, Arizona, Allied Waste Industries, Inc.
(NYSE: AW) -- http://www.investor.alliedwaste.com/-- provides
collection, recycling and disposal services to residential,
commercial and industrial customers in the United States.  As of
Dec. 31, 2005, the Company operated a network of 310 collection
companies, 166 transfer stations, 169 active landfills and 57
recycling facilities in 37 states and Puerto Rico.

                        *    *    *

As reported in the Troubled Company Reporter on Sept. 26, 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. solid waste sector, the rating agency
confirmed its B2 Corporate Family Rating for Allied Waste
Industries, Inc., and its Allied Waste North America, Inc.,
subsidiary, and that intermediate subsidiary's subsidiary
Browning-Ferris Industries, Inc.  


ADVANCED CARDIOLOGY: Section 341(a) Meeting Slated for Feb. 12
--------------------------------------------------------------
The United States Trustee for Region 21 will convene a meeting
of Advanced Cardiology Center Corp.'s creditors at 1:30 p.m., on
Feb. 12, 2007, at the 341 Meeting Room, Ochoa Building, 500
Tanca Street, First Floor in San Juan, Puerto Rico.

This is the first meeting of creditors under Section 341(a) of
the U.S. Bankruptcy Code.

All creditors are invited, but not required, to attend. This
Meeting of Creditors offers the one opportunity in a bankruptcy
proceeding for creditors to question a responsible office of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.

Based in Mayaguez, Puerto Rico, Advanced Cardiology Center
Corp., filed for chapter 11 protection on Jan. 8, 2007 (Bankr.
D. P.R. Case No. 07-00061).  Alexis Fuentes Hernandez, Esq., in
San Juan, represents the Debtor.  When the Debtor filed for
protection from its creditors, it listed estimated assets and
debts between US$10 million and US$50 million.


DAVID'S BRIDAL: Moody's Places Corporate Family Rating at B2
------------------------------------------------------------
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 are the rating actions:

   -- Corporate family rating at B2;
   -- Probability-of-default rating at B2; and,
   -- US$315 million senior secured term loan at B2 LGD3, 44%.

David's Bridal along with Priscilla's of Boston are 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;

   -- 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 6x
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 1x, 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,
Pennsylvania, 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.


SALLY BEAUTY: Appoints David Rea as Senior VP, CFO & Treasurer
--------------------------------------------------------------
Sally Beauty Holdings, Inc.'s board of directors has elected
David L. Rea as Senior Vice President, Chief Financial Officer
and Treasurer, reporting to Gary Winterhalter, President and
Chief Executive Officer.  Mr. Rea will oversee accounting,
treasury, finance, tax, investor relations, risk management and
loss prevention.  Gary Robinson is retiring as Senior Vice
President, CFO and Treasurer of the company.

Mr. Rea brings over 20 years of finance and operating experience
to the company, including work with three public companies.  Mr.
Rea most recently held positions with La Quinta Corporation,
including President and Chief Operating Officer from 2005
through early 2006.  For nearly five years prior to that, he was
the Executive Vice President and CFO of La Quinta managing the
accounting, internal audit, tax, risk management, investor
relations and treasury departments.  In addition, Mr. Rea was
previously CFO for Singlesourceit.com and for Red Roof Inns,
Inc. Mr. Rea also held a key finance position at Debartolo
Realty Corporation and spent nearly nine years as an investment
professional with T. Rowe Price Associates, Inc. Mr. Rea is a
graduate of Colgate University and earned his MBA from Dartmouth
College.  He is also a Chartered Financial Analyst.

Gary Winterhalter, President and Chief Executive Officer
comments, "David brings to Sally Beauty Holdings significant
financial and operational leadership based on his extensive
experience in multi-unit businesses and public companies.  He
will be a great addition to our management team."

Sally Beauty Holdings, Inc., headquartered in Denton, Texas,
will be a leading national retailer and distributor of beauty
supplies with operations under its Sally Beauty Supply and
Beauty Systems Group businesses.  For the fiscal year ended
Sept. 30, 2005, New Sally's revenues exceeded US$2.2 billion.
The company has stores in Canada, Mexico, Puerto Rico, the U.K.,
Ireland, Germany and Japan.

                        *    *    *

As reported in the Troubled Company Reporter on Oct. 26, 2006,
Moody's Investors Service assigned first time ratings, including
a corporate family rating of B2 and a speculative grade
liquidity rating of SGL-2, to Sally Holdings, LLC.

The rating outlook is stable.  The ratings are conditional upon
review of final documentation.

These are the rating actions:

     -- Corporate family rating at B2

     -- Probability-of-default rating at B2

     -- US$400 million senior secured guaranteed bank revolving
        credit facility at Ba2 (LGD 1, 7% LGD rate)

     -- US$1.07 billion senior secured guaranteed term loans at
        B2 (LGD 4, 50% LGD rate)

     -- US$430 million senior unsecured guaranteed notes at B2
        (LGD 4, 55% LGD rate)

     -- US$280 million unsecured senior subordinated guaranteed
        notes at Caa1 (LGD 6, 93% LGD rate)

     -- Speculative Grade Liquidity Rating of SGL-2




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


ROYAL CARIBBEAN: Awards Shipping Contract to American Airlines
--------------------------------------------------------------
Royal Caribbean Cruises Ltd. has awarded a cruise shipping
contract to American Airlines, Inc., to become the official
carrier for the former's over 10,000 Jamaican workers, the
Jamaica Observer reports, citing sources.

Sources told The Observer that Royal Caribbean initially made
the offer to air Jamaica.  However, Air Jamaica reportedly did
not act on the offer.  

A source from Royal Caribbean told The Observer, "The offer was
for Air Jamaica to transport all vacationing Jamaican workers
and workers from other Caribbean islands at the expense of the
cruise line.  This we thought would have been a good opportunity
for the airline to fill many of its empty seats considering that
the workers go on vacation all year round.  The offer was made
some time last year and I can tell you for a fact that American
Airlines didn't need much convincing to grab the deal.  I cannot
comment on the exact dollar value of the contract but let's say
that this was worth millions."

Steve Richardson, a Royal Caribbean employee, commented to The
Observer that people were at first puzzled when they learnt of
the arrangement.  He said, "I was asking myself why the
Caribbean workers, especially Jamaicans, were traveling only on
American Airlines.  The cruise line is responsible for
purchasing our round-trip tickets, usually from Miami, so we
have no say in the matter.  It was only recently that I was made
aware that Air Jamaica was to be blamed for this.  As a
Jamaican, I can't help but wonder what is really happening with
our national carrier."

This was just one of the many mistakes Air Jamaica committed
since the government resumed control of the airline, The
Observer notes, citing Raymond Townsend, a Jamaican worker.

" I still cannot believe that we have to fly American and not on
our national carrier (Air Jamaica)," Mr. Townsend commented to
The Observer.

                   About American Airlines

American Airlines, Inc. -- http://www.AA.com/-- American Eagle,
and the AmericanConnection regional airlines serve more than 250
cities in over 40 countries, including Uruguay and Argentina,
with more than 3,800 daily flights.  The combined network fleet
numbers more than 1,000 aircraft.  American Airlines, Inc. and
American Eagle are subsidiaries of AMR Corp.

                      About Air 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.

                    About Royal Caribbean

Royal Caribbean Cruises Ltd. -- http://www.royalcaribbean.com  
-- is a global cruise company that operates Royal Caribbean
International and Celebrity Cruises with a combined total of 29
ships in service and six under construction.  The company also
offers unique land-tour vacations in Alaska, Canada and Europe
through its cruise-tour division.

                        *    *    *

Moody's Investors Service has assigned on June 7, 2006, a Ba1
rating on Royal Caribbean's US$700 million senior unsecured
notes issuance and affirmed all existing long-term ratings.




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


AMERICAN AIRLINES: Gets Shipping Contract from Royal Caribbean
--------------------------------------------------------------
Royal Caribbean Cruises Ltd. has awarded a cruise shipping
contract to American Airlines, Inc., to become the official
carrier for the former's over 10,000 Jamaican workers, the
Jamaica Observer reports, citing sources.

Sources told The Observer that Royal Caribbean initially made
the offer to air Jamaica.  However, Air Jamaica reportedly did
not act on the offer.  

A source from Royal Caribbean told The Observer, "The offer was
for Air Jamaica to transport all vacationing Jamaican workers
and workers from other Caribbean islands at the expense of the
cruise line.  This we thought would have been a good opportunity
for the airline to fill many of its empty seats considering that
the workers go on vacation all year round.  The offer was made
some time last year and I can tell you for a fact that American
Airlines didn't need much convincing to grab the deal.  I cannot
comment on the exact dollar value of the contract but let's say
that this was worth millions."

Steve Richardson, a Royal Caribbean employee, commented to The
Observer that people were at first puzzled when they learnt of
the arrangement.  He said, "I was asking myself why the
Caribbean workers, especially Jamaicans, were traveling only on
American Airlines.  The cruise line is responsible for
purchasing our round-trip tickets, usually from Miami, so we
have no say in the matter.  It was only recently that I was made
aware that Air Jamaica was to be blamed for this.  As a
Jamaican, I can't help but wonder what is really happening with
our national carrier."

This was just one of the many mistakes Air Jamaica committed
since the government resumed control of the airline, The
Observer notes, citing Raymond Townsend, a Jamaican worker.

" I still cannot believe that we have to fly American and not on
our national carrier (Air Jamaica)," Mr. Townsend commented to
The Observer.

                     About Air 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.

                    About Royal Caribbean

Royal Caribbean Cruises Ltd. -- http://www.royalcaribbean.com  
-- is a global cruise company that operates Royal Caribbean
International and Celebrity Cruises with a combined total of 29
ships in service and six under construction.  The company also
offers unique land-tour vacations in Alaska, Canada and Europe
through its cruise-tour division.

                   About American Airlines

American Airlines, Inc. -- http://www.AA.com/-- American Eagle,
and the AmericanConnection regional airlines serve more than 250
cities in over 40 countries, including Uruguay and Argentina,
with more than 3,800 daily flights.  The combined network fleet
numbers more than 1,000 aircraft.  American Airlines, Inc. and
American Eagle are subsidiaries of AMR Corp.

                        *    *    *

As reported in the Troubled Company Reporter on April 25, 2006,
Standard & Poor's Ratings Services placed its ratings on AMR
Corp. (B-/Watch Pos/B-3) and subsidiary American Airlines Inc.
(B-/Watch Pos/--) on CreditWatch with positive implications.
The CreditWatch placement reflected improving earnings and cash
flow prospects, which should translate into a strengthened
financial profile.  The 'B+' bank loan rating on American's $773
million credit facility was placed on CreditWatch, but the '1'
recovery rating (which addresses recovery prospects in a default
scenario) was not placed on CreditWatch.




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


AES CORP: Venezuela Buying Shares in Electricidad de Caracas
------------------------------------------------------------
The Venezuelan government will seek to purchase AES Corp.'s 80%
stake in Electricidad de Caracas as part of its nationalization
strategy, Business News Americas reports.

Energy and oil minister Rafael Ramirez told BNamericas that
minority shareholders and workers, who hold 20% of Electricidad
de Caracas, will have their rights preserved.

Enagen would run Electricidad de Caracas, BNamericas says,
citing Minister Ramirez.

Enagen is a Venezuelan state generation firm created in October
2006.  State oil company Petroleos de Venezuela SA owns 40% of
Enagen.  The energy and oil ministry has 40% in the firm and
state power companies Enelbar and Enelven own the remaining 20%.

Minister Ramirez did not tell BNamericas how the government
would acquire AES Corp.'s shares in Electricidad de Caracas,
saying he did not want to influence current trading of the two
companies on open markets.

               About Electricidad de Caracas

Electricidad de Caracas is the largest privately owned electric
utility company in Venezuela.  Electricidad de Caracas
transmits, distributes and markets electricity to the
metropolitan Caracas area.  In June 2000, Arlington, Virginia-
based AES Corporation acquired an 87% interest in Electricidad
de Caracas for US$16 billion in a public-tender offer.

                       About AES Corp.

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

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

                        *    *    *

As reported in the Troubled Company Reporter - Asia Pacific on
Oct. 20, 2006, Moody's Investors Service's downgraded its B1
Corporate Family Rating for AES Corporation in connection with
the implementation of its new Probability-of-Default and Loss-
Given-Default rating methodology.  Additionally, Moody's revised
its probability-of-default ratings and assigned loss-given-
default ratings on the company's loans and bond debt obligations
including the B1 rating on its senior unsecured notes 7.75% due
2014, which was also given an LGD4 loss-given default rating,
suggesting noteholders will experience a 55% loss in the event
of a default.


DAIMLERCHRYSLER: Might Delay Releasing 2006 Financial Statements
----------------------------------------------------------------
DaimlerChrysler AG's fourth quarter and full year 2006 financial
statements may not be released as planned on Feb. 14, and the
company's April 4 annual general assembly may be postponed, a
company spokeswoman told the Frankfurter Allgemeine
Sonntagszeitung.

She confirmed that the delay is caused by the refusal of the
company's works council to approve overtime work for accountants
to complete the annual report on time, reports said.

The prohibition to work extra hours by the council is in protest
against management plans to cut 6,000 administrative jobs.

The company plans to move some administrative work to Prague
where labor costs are lower than in Germany.

                    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.


DAIMLERCHRYSLER AG: To Sell 7.5% EADS Stake to Bank Consortium
--------------------------------------------------------------
DaimlerChrysler AG will sell a third of its 22.5% stake in
European Aeronautic Defence & Space Co. to a consortium of
financial institutions organized by the German government, the
Wall Street Journal reports citing a source privy to the matter.

The German government has been looking for a solution to
safeguard its interest in EADS as well as to allow Daimler to
cut its stake without risking the balance between German and
French interests in the aeronautics firm, WSJ relays.

Under the plan, the consortium -- comprising Credit Suisse
Group, Morgan Stanley, Goldman Sachs Group Inc., Deutsche Bank
AG and Commerzbank AG, insurer Allianz SE, government-backed KfW
Banking Group and banks of German federal states -- would a 7.5%
stake using derivatives, worth EUR1.5 billion based on EADS's
stock-market value, WSJ reports.  

Daimler, which have repurchase the stake after four years, would
remain a shareholder and keep its voting rights for the entire
stake of 22.5%, WSJ cites another source.

Dieter Zetsche, DaimlerChrysler Chief Executive, told WSJ last
week that the carmaker was "relatively close" to an agreement
involving the sale of part of its stake in EADS.  Mr. Zetsche,
who refused to name the possible buyers, expressed irritation
with the severe attention the sale talks got in Germany.

"We would have liked to do our job, come up with a result and
then inform the public," Mr. Zetsche told WSJ.  "As this is a
very political sphere, it's probably naive to think that's
possible."

A German government spokesman said the deal would be unveiled by
the end of January.  

EADS experienced financial fix in 2006 following delays in the
production of its A380 superjumbo jetliner.  The company lost
around EUR5 billion in future profit and warned of possible job
cuts.

                   About DaimlerChrysler

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

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

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

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

                           Outlook

As reported in the TCR-Europe on Oct. 30, 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.


PETROLEOS DE VENEZUELA: Will Create New Firm with Petropars
-----------------------------------------------------------
Petroleos de Venezuela SA, the state-run oil firm of Venezuela,
will create a mixed company with Petropars, its Iranian
counterpart, Inside Costa Rica reports.

According to Inside Costa Rica, the mixed firm will develop,
extract and commercialize hydrocarbons.

Inside Costa Rica relates that Venezuela and Iran have moved
towards the extension of their bilateral agreements, supported
by the signing of 11 cooperation deals in energy, industry and
education, finances, popular economy, infrastructure and
politics.  Venezuela's President Hugo Chavez and Mahmud
Ahmadineyad, his Iranian counterpart, attended the clinching of
the documents that included the creation of the mixed company.

News agencies Bolivariana de Noticias of Venezuela and Iranian
Noticias signed a memorandum of understanding besides exchanging
the documents that ratified an agreement aimed at avoiding the
double taxation, Inside Costa Rica notes.

Venezuela and the Islamic Republic will support the productive
cut in the Organization of Petroleum Exporting Countries to stop
the decline of the oil prices, President Chavez told Inside
Costa Rica.

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: Pres. Chavez to Extend Gas Pipeline to Nicaragua
-------------------------------------------------------------
Pres. Hugo Chavez aims to extend the Venezuela-Colombia natural
gas pipeline to Nicaragua, local news station union Radio
reports.

According to Pres. Chavez, this move will allow some
petrochemical plants to produce fertilizers for the Nicaraguan
market and maybe even beyond the Central American market, Union
Radio continues.

Pres. Chavez attended the inauguration of Daniel Ortega as
president of Nicaragua and vowed to boost ties between the two
countries, Bnamericas says.

"Starting today, we are one single republic, one single people,
one single nation," BNamericas quoted Pres. Chavez.

The president has also met with Panamanian authorities to
discuss the expansion of the same pipeline to Panama.  The 225-
km pipeline is under construction and is expected to start
operations in 2008, BNamericas relates.

                        *    *    *

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: Deciding How Much Stake to Buy in CA Nacional
----------------------------------------------------------
Venezuela will still decide how much of an equity stake it will
acquire in CA Nacional Telefonos de Venezuela aka CANTV, a
provider of fixed telecommunications services, Venezuela's
telecommunications minister Jessie Chacon told the press.

Venezuela plans to nationalize only CANTV, as it has blocked
competitors from entering the local market, Dow Jones Newswires
reports, citing Minister Chacon.

Minister Chacon told reporters that the government will control
both the fixed-line and cellular divisions of the firm.

Dow Jones underscores that in the oil sector, Venezuela wants to
have majority stakes of at least 51% in projects previously
controlled by private companies.

The telecommunications nationalization is meant to improve
access to phone services, Dow Jones says, citing Minister
Chacon.

The report says that Verizon Communications owns a 28.5% stake
in CANTV and had plans to sell its stake for US$677 million.

Minister Chacon told Dow Jones, "There have been some advances
in telecommunications services, but large areas of the country
have no coverage due to the dominance of the largest company
that has blocked the access of competitors."

CANTV controls 83% of the Venezuelan Internet market and 70% of
local long distance, Dow Jones notes, citing Minister Chacon.  
He said, "That's why we decided to nationalize."

Minister Chacon told Dow Jones that the government will be
reviewing existing telecommunications legislation for revision.

Venezuela will also review the process of granting
telecommunications concessions, Dow Jones states, citing
Minister Chacon.

                        *    *    *

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.


                        ***********


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.

This material is copyrighted and any commercial use, resale or
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re-mailing and photocopying) is strictly prohibited without
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Information contained herein is obtained from sources believed
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The TCR Latin America subscription rate is US$625 per half-year,
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           * * * End of Transmission * * *