TCRLA_Public/070123.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Tuesday, January 23, 2007, Vol. 8, Issue 16

                          Headlines

A R G E N T I N A

CANAL 9: Angel Gonzalez Purchases 80% of TV Channel
GET PC: Trustee Verifies Proofs of Claim Until April 11
GREIF: Commences Offer to Purchase US$242.6 Million Senior Notes
EL CONDE: Asks for Court Approval to Reorganize Business
LAYBOR SA: Proofs of Claim Verification Is Until Oct. 3

LOGISTICA TRANSFAN: Claims Verification Deadline Is on Feb. 14
PETROBRAS ENERGIA: Agrees to Sell 9.19% Stake in Hidroneuquen

B A H A M A S

WINN-DIXIE: IRS Asks to Defer Tax Claims Hearing to Jan. 24

B E R M U D A

ACORDIA BROKERAGE: Proofs of Claim Filing Is Until Feb. 1
ACORDIA MANAGEMENT: Proofs of Claim Filing Is Until Feb. 1
HOOKE LTD: Creditors Have Until Feb. 22 to File Proofs of Claim
INTERNATIONAL MUSIC (1): Claims Filing Deadline Is on Feb. 22
REFCO INC: CFTC Objects to Mr. McNeil's Case Conversion Request

REFCO INC: IDC Wants Contracts Deemed Assigned to Man Financial
SEA CONTAINERS: Posts US$888,304 Net Loss in November 2006
SCOTTISH RE: Rejects Proposal from Brandes Investment
SCOTTISH RE: Shareholders to Vote on MassMutual Deal on Feb. 23

B O L I V I A

ADRIATICA DE SEGUROS: Regulator Orders Firm's Intervention

B R A Z I L

ARVINMERITOR: Moody's Lowers Corporate Family Rating to Ba3
BANCO DO BRASIL: Board Ratifies Stock Split Proposal
BANCO NACIONAL: Channeling BRL80MM Into Small Firms Pilot Fund
BANCO NACIONAL: Grants BRL46-Mil. Loan to Melton Administradora
DURA AUTOMOTIVE: RSM Updates Ontario Court on Chapter 11 Cases

DURA AUTOMOTIVE: Ontario Ct. Recognizes US Ct.'s Final DIP Order
GERDAU SA: Acominas Plant Boosting Structural Profile Capacity
PETROLEO BRASILEIRO: Board OKs Update on Investment Budget Plan
PETROLEO BRASILEIRO: Plant Project to Cost More Than Planned
PETROLEO BRASILEIRO: Restarting P-55 Construction Tender

SANMINA-SCI: S&P Holds NegWatch on BB- Rating on Profit Concerns
TRANSAX INT: Inks US$5.9MM Letter of Intent to Sell MedLink Unit

C A Y M A N   I S L A N D S

AB (ULTIMATE): Shareholders to Gather for Jan. 29 Final Meeting
ASSET TRUST: Final Shareholders Meeting Is Set for Jan. 29
CAPITAL Z: Shareholders to Convene for Final Meeting on Jan. 29
DAIKAI PROPERTIES: Final Shareholders Meeting Is on Jan. 29
FGI LIONS: Shareholders to Gather for Final Meeting on Jan. 29

GED ARBITRAGE: Liquidator to Present Wind Up Accounts on Jan. 29
GLOBAL HOSPITAL: Calls Shareholders for Jan. 29 Final Meeting
ISLAMIC FUNDING: Final General Meeting Is Set for Jan. 29
KASAMA HOLDING: Invites Shareholders for Jan. 29 Final Meeting
PINE HILLS: Sets Final Shareholders Meeting on Jan. 29

POWER FUNDING: Shareholders to Gather for Jan. 29 Final Meeting
PREDICTION MANAGEMENT: Final Shareholders Meeting Is on Jan. 29
SAPIC-98 (42): Sets Final General Meeting on Jan. 29
SHIHARAI DAIKOU: Calls Shareholders for Final Meeting on Jan. 29
SPINNAKER CDO: Sets Final Shareholders Meeting on Jan. 29

TR INVESTMENTS: Calls Shareholders for Final Meeting on Jan. 29

C H I L E

BELL MICROPRODUCTS: Terminates Tender Offer for Conv. Sub. Notes
BLOCKBUSTER INC: Declares US$18.75 Per Share Cash Dividend

C O L O M B I A

BANCO DEL CAFE: IFC Provides Davivienda US$240 Mil. to Buy Bank

C O S T A   R I C A

* COSTA RICA: State Bank Forms Alliance with Instituto Nacional

D O M I N I C A N   R E P U B L I C

FALCONBRIDGE: Declares Preferred Share Dividends

E C U A D O R

PETROECUADOR: Head Implementing Major Reforms in Operations

* ECUADOR: Looking for Private Investments for Oil Fields
* ECUADOR: Considers Rejoining Petroleum Trade Organization
* ECAUDOR: S&P Lowers Long-Term Sovereign Credit Rating to CCC

E L   S A L V A D O R

DIGICEL LTD: Awards GSM/EDGE Contracts to Ericsson

G U A T E M A L A

BANCAFE: Executives on Wanted List for Money Laundering & Fraud
BANCO DE COMERCIO: Police Looking for Top Officials
BANCO INDUSTRIAL: Moody's Affirms Ratings on Bancomer Absorption
GOODYEAR TIRE: Discloses Conversion Period for 4.00% Conv. Notes

H O N D U R A S

* HONDURAS: Won't Continue Take Over of Oil Storage Tanks

J A M A I C A

AIR JAMAICA: J$2B Gov't Aid to Airline Better Spent on Others
AIR JAMAICA: Planes Replacement May Boost Expenses, Workers Say
DYOLL INSURANCE: Liquidation Delayed

M E X I C O

AXTEL SAB: Avantel Buy Cues Moody's to Confirm Ba3 Family Rating
CINRAM INTERNATIONAL: Declares January 2007 Cash Distribution
FORD MOTOR: Eyes Partnership with Toyota
GENERAL MOTORS: Sells More Than 9 Million Vehicles Globally
GLOBAL POWER: Court Extends Lease Decision Period to April 26

GLOBAL POWER: Court Sets April 18 as General Claims Bar Date
GLOBAL POWER: U.S. Trustee Amends Creditors Committee Membership
GRUPO FINANCEIRO: Completes Acquisition of Uniteller
NORTEL NETWORKS: Declares Preferred Share Dividends
SONIC: 2007 1st Fiscal Qtr. Net Income Decreases to US$15.3 Mil.

VITRO SA: Vitro Plan Shareholders Approve Merger with Vimexico
WERNER LADDER: To Emerge from Bankruptcy in 2nd Half, Says CEO

P A N A M A

KANSAS CITY SOUTHERN: Sets Annual Shareholders Meeting on May 3

P A R A G U A Y

INTERPUBLIC GROUP: Withdraws Claim Statement Against Sir Frank

P E R U

DOE RUN: Extends Tender Offer on 11.75% Notes Until Feb. 2

P U E R T O   R I C O

KMART CORP: Wants Court Decision on Workers' Compensation Claims
NEWCOMM WIRELESS: US Trustee Names 5 Creditors to Serve on Panel
PILGRIM'S PRIDE: Introducing Chicken Products for Kids
PILGRIM'S PRIDE: Protein Acquisition Merges with Gold Kist
R&G FINANCIAL: Appoints Rafael Saldana as R-G Crown President

SEARS HOLDINGS: C. Monaghan Resigns as Chief Financial Officer

U R U G U A Y

* URUGUAY: State Firm Cancels Wind Park Construction Bidding

V E N E Z U E L A

ELECTRICIDAD DE CARACAS: Conindustria Against Nationalization
PETROLEOS DE VENEZUELA: To Hold Majority Stake at Orinoco

* VENEZUELA: Caracas Stock Exchange Hit by Nationalization Woes
* VENEZUELA: Chavez Says Gov't Won't Pay Market Value for Cantv
* VENEZUELA: President Proposes Banco del Sur Creation
* VENEZUELA: Trade Group Wants RCTV License Renewed
* Moody's Reports LGD Results Summary for Homebuilding Sector

* Large Companies with Insolvent Balance Sheets


                         - - - - -


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


CANAL 9: Angel Gonzalez Purchases 80% of TV Channel
---------------------------------------------------
Mexican businessman Angel Gonzales acquired 80% of the shares of
Argentine TV channel, Canal 9, from Daniel Hadad for an
unspecified amount.

Mr. Hadad will remain with the station and will be responsible
for the control of the contents and informations of the channel.

Canal 9's debt restructuring proposal proposes to pay creditors,
holding an aggregate amount of US$100 million, 68 cents on the
dollar.  Repayment will be in seven annual equal installments
with the first due occurring six years after the proposal is
approved by the Court.  That plan received 69.82% (in number)
and 68.87% (in capital) of acceptance from creditors.


GET PC: Trustee Verifies Proofs of Claim Until April 11
-------------------------------------------------------
Carlos Alberto Perez, the court-appointed trustee for Get PC
Insumos Informaticos SA 's bankruptcy proceeding, verifies
creditors' proofs of claim until Apr. 11, 2007.

Mr. Perez will present the validated claims in court as
individual reports on May 24, 2007.   A court in Buenos Aires
will determine if the verified claims are admissible, taking
into account the trustee's opinion and the objections and
challenges raised by Get PC 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 Get PC's accounting
and banking records will follow on June 6, 2007.

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

The trustee can be reached at:
         
          Carlos Alberto Perez
          Avenida Centenario 725, San Isidro
          Buenos Aires, Argentina  


GREIF: Commences Offer to Purchase US$242.6 Million Senior Notes
----------------------------------------------------------------
Greif Inc. is commencing an offer to purchase and a consent
solicitation for any and all of its outstanding 8-7/8% Senior
Subordinated Notes due 2012 with aggregate principal amount
currently outstanding of approximately US$242.6 million.

The offer to purchase will expire at midnight, New York City
time, on Feb. 8, 2007.  The consent solicitation will expire at
5 p.m., New York City time, on Jan. 25, 2007.

Holders tendering their notes will be deemed to have delivered
their consent to certain proposed amendments to the notes and
the indenture governing the notes, which will eliminate, among
other things, substantially all of the restrictive covenants and
certain events of default in the indenture.

The purchase price for each US$1,000 principal amount of notes
tendered and not validly withdrawn on or prior to the expiration
date of the offer to purchase will be US$1,028.36 plus unpaid
interest on the principal amount of the notes accruing to, but
not including, the payment date.  In addition to the purchase
price, Greif will make a consent payment of US$30 for each
US$1,000 principal amount of notes for which consents have been
delivered on or prior to the expiration date of the consent
solicitation.

The offer to purchase and consent solicitation conditions
include a majority of the aggregate principal amount of notes
outstanding being tendered on or prior to the consent date, a
refinancing condition, and the execution of a supplemental
indenture on or prior to the acceptance date implementing the
proposed amendments.

Deutsche Bank Securities Inc. is the dealer manager for the
offer to purchase and the solicitation agent for the consent
solicitation.  Questions or requests for assistance and
documentation may be directed to:

          Deutsche Bank Securities Inc.
          Attn: Christopher White
          60 Wall Street, New York, NY 10005
          Tel: (212) 250-6008,

              -- or --

          MacKenzie Partners, Inc.
          105 Madison Avenue, New York, NY 10016
          Tel: (800) 322-2885 or (212) 929-5500 (call collect)

Headquartered in Delaware, Ohio, Greif, Incorporated, (NYSE:
GEF, GEF.B) -- http://www.greif.com/-- produces steel, plastic,  
fibre, corrugated and multiwall containers, protective packaging
and containerboard, and provides blending and packaging services
for a wide range of industries.  The company also manages timber
properties in North America and is positioned in more than 40
countries to serve global as well as regional customers.   The
company has operations in Australia, Argentina, Brazil, Belgium,
China, Malaysia, among others.

                        *    *    *

As reported in the Troubled Company Reporter on Oct. 30, 2006,
Moody's Investors Service, in connection with the implementation
of its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. manufacturing sector, confirmed its Ba2
Corporate Family Rating for Greif, Incorporated, as well as
revised its rating on the company's US$250 million 8.875% senior
subordinate notes due 2012 to Ba3 from B1.  Those debentures
were assigned an LGD5 rating suggesting lenders will experience
an 82% loss in the event of default.


EL CONDE: Asks for Court Approval to Reorganize Business
--------------------------------------------------------
Court No. 20 in Buenos Aires is studying the merits of El Conde
de Montecristo SRL's petition to reorganize its business after
it stopped paying its obligations.

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

The debtor can be reached at

         El Conde de Montecristo SRL
         Avenida de Mayo 676
         Buenos Aires, Argentina


LAYBOR SA: Proofs of Claim Verification Is Until Oct. 3
-------------------------------------------------------
Carlos Alejandro Picighelli, the court-appointed trustee for
Laybor SA's bankruptcy proceeding, will verify creditors' proofs
of claim until Oct. 3, 2007.

Mr. Picighelli will present the validated claims in court as
individual reports on Nov. 15, 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 Laybor SA and its creditors.

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

A general report that contains an audit of Laybor SA's
accounting and banking records will follow on Feb. 4, 2008.

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

The debtor can be reached at:

         Laybor SA
         Agustin Alvarez 40
         Ciudad de Mendoza
         Mendoza, Argentina

The trustee can be reached at:

         Carlos Alejandro Picighelli
         Cayetano Silva 3067 Ciudad de Mendoza
         Mendoza, Argentina


LOGISTICA TRANSFAN: Claims Verification Deadline Is on Feb. 14
--------------------------------------------------------------
Rodolfo Fernando Daniel Torella, the court-appointed trustee for
Logistica Transfan SA's bankruptcy proceeding, verifies
creditors' proofs of claim until Feb. 14, 2007.

Mr. Torella will present the validated claims in court as
individual reports on April 26, 2007.   A court in Buenos Aires
will determine if the verified claims are admissible, taking
into account the trustee's opinion and the objections and
challenges raised by Logistica Transfan 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 Logistica Transfan's
accounting and banking records will follow on June 11, 2007.

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

The trustee can be reached at:

          Rodolfo Fernando Daniel Torella
          Arcos 372
          Buenos Aires, Argentina  


PETROBRAS ENERGIA: Agrees to Sell 9.19% Stake in Hidroneuquen
-------------------------------------------------------------
Petrobras Energia has agreed to sell a 9.19% stake in the
Hidroneuquen consortium to another consortium composed of
Merrill Lynch, Pierce, Fenner & Smith and Sociedad Argentina de
Energia for US$15 million, Business News Americas reports.

BNamericas relates that Petrobras Energia received US$15 million
from the sale, netting ARS30 million after expenses.

Hidroneuquen holds a 59% stake in local generator Hidroelectrica
Piedra del Aguila.  Piedra del Aguila is on the Limay river
between Rio Negro and Neuquen provinces, roughly halfway between
the cities of Neuquen and Bariloche, BNamericas states.

                     About Hidroneuquen

Hidroneuquen SA is located in Neuquen, Argentina.  It is an
owner of hydraulic electricity plants.

                    About Merrill Lynch

Merrill Lynch & Co., Inc., is a holding company that, through
its subsidiaries and affiliates, provides broker-dealer,
investment banking, financing, wealth management, advisory,
asset management, insurance, lending and related products and
services on a global basis.  Merrill Lynch provides these
products and services to an array of clients, including
individual investors, small businesses, corporations, financial
institutions, governments and government agencies.  The
company's business activities are grouped into three business
segments, Global Markets and Investment Banking, Global Private
Client and Merrill Lynch Investment Managers.

                  About Petrobras Energia

Petrobras Energia Participaciones SA, through its subsidiary,
explores, produces, and refines oil and gas, as well as
generates, transmits, and distributes electricity. It also
offers petrochemicals, as well as markets and transports
hydrocarbons.  The company conducts oil and gas exploration and
production operations in Argentina, Venezuela, Peru, Ecuador,
and Bolivia

                        *    *    *

As reported on Jan. 4, 2007, Fitch Argentina Calificadora de
Riesgo affirmed these ratings assigned to Petrobras Energia:

   -- international currency: B+
   -- local currency: BB-
   -- unsecured senior debt: B+




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


WINN-DIXIE: IRS Asks to Defer Tax Claims Hearing to Jan. 24
-----------------------------------------------------------
The Internal Revenue Service is asking to reschedule to Jan. 24  
a hearing that would settle its objection over proofs of claim
valued at US$88.8 million against Winn-Dixie Stores Inc. and its
debtor-affiliates, the Birmingham Business Journal reports.

The objection was arranged to be settled on Jan. 10, 2007, in
the U.S. Bankruptcy Court for the Middle District of Florida,
but the IRS was not ready.

As reported in the Troubled Company Reporter on Jan. 4, 2006,
the IRS filed 78 proofs of claim in the Reorganized Debtors'
Chapter 11 cases, 29 of which have been disallowed by prior
Court orders.  Claim No. 13607 asserts US$88,832,315, of which
US$52,062,370 is alleged to be secured.

According to Ms. Jackson, the Reorganized Debtors have been in
negotiations with the IRS regarding their tax liabilities for
the 2000 through 2004 tax years.  Based upon their discussions,
the parties have agreed that:

   (x) the IRS is owed an additional US$8,786,660 for the 2000
       tax year;

   (y) the IRS owes the Debtors a refund of US$1,273,443 for the
       2001 tax year; and

   (z) the IRS owes the Debtors a refund of US$91,504 for the
       2002 tax year.

The parties, however, have not yet reached an agreement
regarding the Debtors' tax liabilities for the 2003, 2004 and
2005 tax years.

The Reorganized Debtors maintain that they overpaid the IRS in
2003 by US$1,905,516, and that they owe the IRS no additional
monies for the 2004 tax year.  Furthermore, based upon net
losses incurred in the 2004 and 2005 tax years, the Reorganized
Debtors assert that they are entitled to refunds for four tax
years:

                 Tax Year      Asserted Refunds
                 --------      ----------------
                   1994           US$6,293,764
                   1995           US$5,454,892
                   2002             US$161,155
                   2003          US$27,633,986

The Reorganized Debtors also asserted that they are owed
US$397,230 for a 2005 fuel tax credit.

         Request to Consolidate Hearings Denied

The Birmingham Business Journal relates that the Honorable Jerry
Funk denied a request to consolidate hearings of tax liability
claims of four states in various counties against the
Reorganized Debtors.

Richard Thames, who represented tax collectors for six
objections related to determining the amount of tax liabilities,
argued that many collectors shared similar objections and they
wanted to inform the court on the legal issues.

Judge Funk concluded that he is aware of the issues and it will
be dealt with on a case-by-case basis.  

                      About Winn-Dixie

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




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


ACORDIA BROKERAGE: Proofs of Claim Filing Is Until Feb. 1
---------------------------------------------------------
Acordia Brokerage Services Ltd.'s creditors are given until
Feb. 1, 2007, to prove their claims to Jennifer Y. Fraser, the
company's liquidator, or be excluded from receiving any
distribution or payment.

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

Acordia Brokerage's shareholders agreed on Jan. 11, 2006, to
place the company into voluntary liquidation under Bermuda's
Companies Act 1981.

The liquidator can be reached at:

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


ACORDIA MANAGEMENT: Proofs of Claim Filing Is Until Feb. 1
----------------------------------------------------------
Acordia Management Services Ltd.'s creditors are given until
Feb. 1, 2007, to prove their claims to Jennifer Y. Fraser, the
company's liquidator, or be excluded from receiving any
distribution or payment.

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

Acordia Management's shareholders agreed on Jan. 11, 2006, to
place the company into voluntary liquidation under Bermuda's
Companies Act 1981.

The liquidator can be reached at:

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


HOOKE LTD: Creditors Have Until Feb. 22 to File Proofs of Claim
---------------------------------------------------------------
Hooke Ltd.'s creditors are given until Feb. 22, 2007, to prove
their claims to Christian Berner, the company's liquidator, or
be excluded from receiving any distribution or payment.

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

Hooke Ltd.'s shareholders agreed on Jan. 12, 2006, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.

The liquidator can be reached at:

         Christian Berner
         c/o Thistle House, 4 Burnaby Street
         Hamilton, Bermuda


INTERNATIONAL MUSIC (1): Claims Filing Deadline Is on Feb. 22
-------------------------------------------------------------
International Music Tour 1 Ltd.'s creditors are given until
Feb. 22, 2007, to prove their claims to Kathy Willard, the
company's liquidator, or be excluded from receiving any
distribution or payment.

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

International Music's shareholders agreed on Jan. 16, 2006, to
place the company into voluntary liquidation under Bermuda's
Companies Act 1981.

The liquidator can be reached at:

         Kathy Willard
         c/o Thistle House, 4 Burnaby Street
         Hamilton, Bermuda


REFCO INC: CFTC Objects to Mr. McNeil's Case Conversion Request
---------------------------------------------------------------
Commodity Futures Trading Commission asks the Honorable Robert
D. Drain of the U.S. Bankruptcy Court for the Southern District
of New York to deny Michael A. McNeil's request to convert Refco
F/X Associates, LLC's and all Refco companies' cases from a
Chapter 11 case to Chapter 7 of the Bankruptcy Code because the
relief he is seeking is not available under the Bankruptcy Code.

Glynn L. Mays, Esq., Senior Assistant General Counsel of CFTC,
in Washington, D.C., tells the Court that, pursuant to the
limits provided under Subchapter IV of Chapter 7 of the
Bankruptcy Code, any customers of FXA, are not eligible for
relief under that subchapter.

Ms. Mays contends that while, in general, the Commodity Exchange
Act requires that transactions should be conducted on or subject
to the rules of a board of trade designated or registered by the
CFTC as a contract market or derivatives transaction execution
facility, retail foreign currency futures transactions may be
conducted away from a contract market under a CEA statutory
exemption.

According to Ms. Mays, Subchapter IV applies to and requires
that bankruptcy proceedings be conducted under Chapter 7 for any
"commodity broker" as defined in Section 101(6).

Section 101(6) defines commodity broker as a futures commission
merchant with respect to which there is a "customer."  Section
761(9) defines "customer" as an entity that holds a claim
against the futures commission merchant on account of a
commodity contract made, received, acquired, or held by or
through that merchant.  Moreover, Section 761(4) defines
"commodity contract" with respect to a futures commission
merchant, as a "contract for the purchase or sale of a commodity
for future delivery on, or subject to the rules of, a contract
market or board of trade."  That is, Ms. Mays clarifies, only
contracts traded "on exchange" are included.

Ms. Mays notes that Mr. McNeil's claim is that FXA engaged in
futures business, however, the record seems clear that its
business was not "on exchange."  Thus, she asserts, Subchapter
IV of Chapter 7 could not apply.

Furthermore, Ms. Mays says, Mr. McNeil asserted that FXA is
required to liquidate under Subchapter IV on the basis that it
was also a "foreign futures commission merchant," a "leverage
transaction merchant," a "clearing organization," and a
"commodity options dealer."

Rather than go through separate eligibility requirements for
each one of those types of entities under Subchapter IV, Mr.
McNeil provides virtually no factual context for his assertions,
Ms. Mays points out.

                      About Refco Inc.

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

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

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

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

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

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

                        Plan Update

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

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

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


REFCO INC: IDC Wants Contracts Deemed Assigned to Man Financial
---------------------------------------------------------------
Based on the conduct of the parties and the benefits received by
Refco Inc. and its debtor-affiliates' estates from uninterrupted
service under the Accounts, Interactive Data Corporation asks
Judge Robert D. Drain of the U.S. Bankruptcy Court for the
Southern District of New York to find that the Accounts were
assumed by the Debtors and assigned to Man Financial, in
furtherance of the sale of the Refco business to avoid prejudice
to IDC.

As of Dec. 7, 2006, the total balance due in the remaining
active customer accounts is US$214,163.

IDC supplies financial information essential to the operation of
Refco, Inc.'s regulated commodities futures merchant business,
pursuant to certain executory contracts and license agreements
with the Debtors.

IDC acknowledges that many of its services are "mission-
critical" in that the Debtors could not have transferred their
business uninterrupted without IDC's continued services.

IDC discussed the issues with counsel and financial advisors to
the Debtors; Albert Togut, the Chapter 7 trustee overseeing the
liquidation of Refco, LLC estate; and Man Financial, Inc.

During that meeting, Douglas B. Rosner, Esq., at Goulston &
Storrs, P.C., in Boston, Massachusetts, on IDC's behalf, notes
that some of the executory contracts may have been with entities
that were part of Refco LLC before the November 2005 sale of
Refco's business to Man Financial.

Mr. Rosner relates that following the Sale, Man Financial has
continued to enjoy the benefits of Interactive Data's services
under several of the Refco executory contracts and licenses as
if they had been assumed by the Debtors and assigned to Man
Financial under Section 365 of the Bankruptcy Code.

Mr. Rosner states that the final acquisition agreement between
the Debtors and Man Financial provided the purchaser until
Aug. 22, 2006, the benefit of all of the Debtors' executory
contracts, intellectual property licenses, and real property
leases to permit Man Financial to conduct the Refco business as
it had previously been operated before the Sale.

Mr. Rosner explains that Interactive Data continued to perform
in good faith under the Accounts during the transition period
with the belief that the Accounts would be designated for
assumption and assignment.  After the expiration of the
transition period on August 22, Man Financial continued to use
Interactive Data's services being performed again as if they had
been assumed by the Debtors and assigned to Man Financial.

More recently, Mr. Rosner says, Man Financial has begun
requesting to amend the agreements underlying the Accounts to
change the name and billing information from the Debtors to Man
Financial.  Those requests brought to light the fact that the
Accounts had not been formally assumed and assigned
notwithstanding the conduct of the Debtors and Man Financial
clearly indicating otherwise.

Mr. Rosner contends that any position taken by the Debtors that
legally enforceable rights under the Accounts were not assigned
to Man Financial pursuant to the Sale is entirely inconsistent
with the conduct of the Debtors and Man Financial post-sale, and
can only be intended to deprive IDC of its entitlement to have
defaults cured as required by Section 365.

"Had the Debtors wished to reject the Accounts, they should have
done so unequivocally and with proper notice to [IDC] at the
time of completion of the [Sale] so that [IDC] could have taken
steps it deemed appropriate with respect to the Accounts,
including refusing to continue the services thereunder," Mr.
Rosner tells the Court.

IDC also asks the Court to direct either the Debtors or Man
Financial to cure all defaults under the Accounts as of
Dec. 1, 2006.

Mr. Rosner asserts that by doing so, the Court would be
formalizing what should be, and is intended to be, the
consequence of the parties' actions.

Considering the investigation required to determine the correct
debtor counterparty with regards to the Sale, IDC will also be
filing a similar request in Refco LLC's Chapter 7 case.

Moreover, in a separate filing, IDC asks Judge Drain to maintain
its status quo pending resolution of the Motion, notwithstanding
the language of the Debtors' Modified Chapter Plan, which
purports to effect a rejection of all unassumed contracts.

                      About Refco Inc.

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

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

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

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

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

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

                        Plan Update

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

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

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


SEA CONTAINERS: Posts US$888,304 Net Loss in November 2006
----------------------------------------------------------

                     Sea Containers, Ltd.
                    Unaudited Balance Sheet
                    As of November 30, 2006

                            Assets

Current Assets
   Cash and cash equivalents                       US$56,007,964
   Trade receivables, less allowances
     for doubtful accounts                             1,917,770
   Due from related parties                            8,201,195
   Prepaid expenses and other current assets           6,524,397
                                                    ------------
      Total current assets                            72,651,326

Fixed assets, net                                              -

Long-term equipment sales receivable, net                      -
Investment in group companies                                  -
Intercompany receivables                                       -
Investment in equity ownership interests             202,366,216
Other assets                                           3,378,541
                                                    ------------
Total assets                                      US$278,396,083

             Liabilities and Shareholders' Equity

Current Liabilities
   Accounts payable                                 US$2,809,381
   Accrued expenses                                   29,436,083
   Current portion of long-term debt                  26,795,063
   Current portion of senior notes                   385,069,151
                                                    ------------
      Total current liabilities                      444,109,678

Total shareholders' equity                         (163,926,553)
                                                    ------------
Total liabilities and shareholders' equity        US$280,183,125

                     Sea Containers, Ltd.
               Unaudited Statement of Operations
             For the Month Ended November 30, 2006

Revenue                                             US$1,342,882

Costs and expenses:
   Operating costs                                        27,402
   Selling, general and
     administrative expenses                         (4,183,914)
   Reorganization Costs                                        -
   Charges to provide against
     intercompany accounts                             7,044,011
   Depreciation and amortization                               -
                                                    ------------
      Total costs and expenses                         2,887,499
                                                    ------------
Loss on sale of assets                                         -
                                                    ------------
Operating income (loss)                                4,230,381

Other income (expense)
   Interest income                                       218,643
   Foreign exchange gains (losses)                        23,237
   Interest expense, net                             (3,483,956)
                                                    ------------
(Loss) Income before taxes                               988,304  
Income tax expense                                     (100,000)
                                                    ------------
Net (loss)                                            US$888,304

A full-text copy of the Debtors' schedules of cash receipts and  
disbursements is available for free at:    

              http://ResearchArchives.com/t/s?18b1  

The Debtors note in their monthly operating report that the  
financial statements represent the Sea Containers Group, Ltd.'s  
internal accounting on an unaudited and uncertified basis.   The  
certification and audit process may result in adjustments to the  
stated entries.

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

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

Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No.
06-11156).  Robert S. Brady, Esq., at Young, Conaway, Stargatt &
Taylor represents the Debtors in their restructuring
efforts.  When the Debtors filed for protection from their
creditors, they reported US$1.7 billion in total assets and
US$1.6 billion in total debts.  (Sea Containers Bankruptcy News,
Issue No. 9; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


SCOTTISH RE: Rejects Proposal from Brandes Investment
-----------------------------------------------------
Brandes Investment Partners, L.P., had reviewed the terms of the
investment in the Scottish Re Group Limited recently proposed by
Cerberus Capital Management, L.P. and MassMutual Capital
Partners, LLC and agreed to by Scottish Re's board of directors.  

In light of objections to the Investment Transaction, on
Jan. 11, 2006, Brandes, on behalf of its clients who own
approximately 2.63% of Scottish Re shares, sent a letter to the
company asking its board to consider an alternative shareholder-
backed rights offering.  In response to the Proposal, on
Jan. 18, 2007, Brandes received a letter from Scottish Re
indicating that it did not consider the Proposal to be superior
to the Investment Transaction and that it would not be pursuing
the Proposal further.  

Brandes believes the objections set in the rejection letter are
without substance, and that Scottish Re has not identified
genuine impediments to the pursuit of a shareholder-backed
rights offering.

                       About Brandes

Brandes is a U.S. registered investment advisor. Located in San
Diego, California, Brandes managed approximately US$117 billion
on behalf of institutional and individual investors, as of
Dec. 31, 2006.

                    About Scottish Re

Scottish Re Group Limited -- http://www.scottishre.com/--
provides reinsurance of life insurance, annuities and annuity-
type products through its operating companies in Bermuda,
Charlotte, North Carolina, Dublin, Ireland, Grand Cayman, and
Windsor, England.  At March 31, 2006, the reinsurer's balance
sheet showed US$12.2 billion assets and US$10.8 billion in
liabilities

                        *    *    *

Moody's Investors Service continues to review the ratings of
Scottish Re Group Ltd. with direction uncertain following the
announcement by the company that it has entered into an
agreement to sell a majority stake to MassMutual Capital
Partners LLC, a member of the MassMutual Financial Group and
Cerberus Capital Management, L.P., a private investment firm.

Ratings under review include Scottish Re Group Limited's senior
unsecured debt which is rated at Ba3 and preferred stock rated
at B2.

Standard & Poor's Ratings Services has also revised the
CreditWatch status of its ratings on Scottish Re Group Ltd.,
Scottish Re's operating companies, and dependent unwrapped
securitized deals to positive from negative.  Scottish Re has a
'CCC' counterparty credit rating, and Scottish Re's operating
companies have 'B+' counterparty credit and financial strength
ratings.  These ratings were placed on CreditWatch negative on
July 31, when Scottish Re announced poor second-quarter results
and that liquidity was tight.

Fitch Ratings added that Scottish Re Group Ltd.'s ratings remain
on Rating Watch Negative following the announcement that SCT has
entered into an agreement which will result in a new equity
investment into the company of US$600 million.  SCT's ratings
were placed on Rating Watch Negative on July 31, due to concerns
regarding the company's ability to repay US$115 million of
senior convertible notes that are expected to be put to the
company on Dec. 6.  Ratings on Rating Watch Negative include the
company's BB issuer default rating and the BB- rating on its
4.5% US$115 million senior convertiblenotes.

A.M. Best Co. has downgraded the Financial Strength Rating to B
from B+ and the issuer credit ratings to "bb+" from "bbb-" of
the primary operating insurance subsidiaries of Scottish Re
Group Limited.  A.M. Best has also downgraded the ICR of
Scottish Re to "b" from "bb-" and all of Scottish Re's debt
ratings.  All ratings remain under review with negative
implications.


SCOTTISH RE: Shareholders to Vote on MassMutual Deal on Feb. 23
---------------------------------------------------------------
Scottish Re Group Limited will hold an Extraordinary General
Meeting of Shareholders at 11 a.m. local time on Feb. 23, 2007,
to vote on the agreement between the company and MassMutual
Capital Partners LLC and certain affiliates of Cerberus Capital
Management, L.P.  The meeting will be held at:

          Fairmont Hamilton Princess Hotel
          76 Pitts Bay Road, Pembroke HM11
          Hamilton, Bermuda

Scottish Re set Jan. 19, 2007, as the record date for the
determination of shareholders entitled to vote at the
Extraordinary General Meeting. Scottish Re will mail a
definitive proxy statement to all shareholders of record as of
the record date on Jan. 22, 2007.  Scottish Re urges all
shareholders to sign, date and return their proxy cards without
delay.

Scottish Re Group Limited -- http://www.scottishre.com/--
provides reinsurance of life insurance, annuities and annuity-
type products through its operating companies in Bermuda,
Charlotte, North Carolina, Dublin, Ireland, Grand Cayman, and
Windsor, England.  At March 31, 2006, the reinsurer's balance
sheet showed US$12.2 billion assets and US$10.8 billion in
liabilities

                        *    *    *

Moody's Investors Service continues to review the ratings of
Scottish Re Group Ltd. with direction uncertain following the
announcement by the company that it has entered into an
agreement to sell a majority stake to MassMutual Capital
Partners LLC, a member of the MassMutual Financial Group and
Cerberus Capital Management, L.P., a private investment firm.

Ratings under review include Scottish Re Group Limited's senior
unsecured debt which is rated at Ba3 and preferred stock rated
at B2.

Standard & Poor's Ratings Services has also revised the
CreditWatch status of its ratings on Scottish Re Group Ltd.,
Scottish Re's operating companies, and dependent unwrapped
securitized deals to positive from negative.  Scottish Re has a
'CCC' counterparty credit rating, and Scottish Re's operating
companies have 'B+' counterparty credit and financial strength
ratings.  These ratings were placed on CreditWatch negative on
July 31, when Scottish Re announced poor second-quarter results
and that liquidity was tight.

Fitch Ratings added that Scottish Re Group Ltd.'s ratings remain
on Rating Watch Negative following the announcement that SCT has
entered into an agreement which will result in a new equity
investment into the company of US$600 million.  SCT's ratings
were placed on Rating Watch Negative on July 31, due to concerns
regarding the company's ability to repay US$115 million of
senior convertible notes that are expected to be put to the
company on Dec. 6.  Ratings on Rating Watch Negative include the
company's BB issuer default rating and the BB- rating on its
4.5% US$115 million senior convertible notes.

A.M. Best Co. has downgraded the Financial Strength Rating to B
from B+ and the issuer credit ratings to "bb+" from "bbb-" of
the primary operating insurance subsidiaries of Scottish Re
Group Limited.  A.M. Best has also downgraded the ICR of
Scottish Re to "b" from "bb-" and all of Scottish Re's debt
ratings.  All ratings remain under review with negative
implications.




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


ADRIATICA DE SEGUROS: Regulator Orders Firm's Intervention
----------------------------------------------------------
Superintendencia de Pensiones, Valores y Seguros -- the Bolivian
pension, securities and insurance regulator -- said in a press
release that it has ordered the intervention of property and
casualty insurance firm Adriatica de Seguros.

The intervention came into effect on Jan. 12, according to the
regulator's statement.

Business News Americas relates that the regulator ordered the
Adriatica de Seguros' liquidation and revoked the firm's
license.

Adriatica de Seguros failed to improve its financial situation
as required by the regulator.  The company posted written
premiums of BOB25.3 million for the first 10 months of 2006,
equivalent to 3.0% of the property and casualty insurance
market, BNamericas states.

Regional ratings agency PCR said in a press release that it
placed its DD rating on Adriatica de Seguros.  The DD rating is
assigned to firms that are or will be in a process of
liquidation.




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


ARVINMERITOR: Moody's Lowers Corporate Family Rating to Ba3
-----------------------------------------------------------
Moody's Investors Service has downgraded ArvinMeritor's
Corporate Family Rating to Ba3 from Ba2.  Ratings on the
company's secured bank obligations and unsecured notes were
lowered one notch as a result.  

The actions follow a decline in the company's margins over the
last year and anticipates expectations expect that, despite
recent progress in reducing its aggregate indebtedness and
leverage, ArvinMeritor's profitability and related coverage
metrics will remain under pressure likely over the intermediate
term as commercial vehicle volumes in North America will
significantly decline and conditions in its light vehicle
segment remain very challenging.  ArvinMeritor's metrics will
increasingly fall short of Ba2 comparables as the year
progresses and will assume the complexion of the Ba3 rating
category.  Moody's also affirmed ArvinMeritor's liquidity rating
of SGL-2 to reflect the actions that the company has taken to
strengthen is capital structure which includes minimal near term
debt maturities and improved availability under its committed
revolving credit.  The outlook is stable at the lower rating.

Moody's lowered these ratings:

   ArvinMeritor, Inc.

   -- Corporate Family Rating to Ba3 from Ba2;

   -- Senior Secured bank debt to Ba1, LGD-2, 20% from Baa3,
      LGD-2, 18%;

   -- Senior Unsecured notes to B1, LGD-4, 65% from Ba3,
      LGD-4, 64%;

   -- Probability of Default to Ba3 from Ba2; and

   -- Shelf unsecured notes to (P)B1, LGD-4, 65% from (P)Ba3,
      LGD-4, 64%.

   Arvin Capital I

   -- Trust Preferred to B2, LGD-6, 96% from B1, LGD-6, 96%.

   Arvin International PLC

   -- Unsecured notes guaranteed by ArvinMeritor, Inc. to B1,
      LGD-4, 65% from Ba3, LGD-4, 64%.

Moody's affirmed this rating:

   ArvinMeritor, Inc.

   -- Speculative Grade Liquidity rating, SGL-2

The last rating action was in September 2006 at which time
ratings were aligned with Moody's Loss Given Default
Methodology.  The outlook had been negative since April 2006.

The Ba3 Corporate Family rating continues to reflect solid
scores under the Auto Supplier Methodology for the company's
scale, market position and diversification spread across two
business segments.  Nonetheless, key credit metrics of EBITA
margin and interest coverage constrain these qualitative
strengths and pull the overall rating into the Ba3 category.  A
downturn in N. American commercial vehicle production volumes is
anticipated as 2007 progresses and is likely to yield softer
margins and coverage metrics over the intermediate term. While
leverage has been reduced as a result of its 2006 tender offer
and application of proceeds from business dispositions, it
remains high. Financing actions taken in 2006 have improved the
company's liquidity profile, lengthened the company's debt
maturity schedule, enhanced its financial flexibility and lend
further support to the rating and stable outlook.

The Ba1 ratings on the bank obligations, two notches above the
Corporate Family Rating, flow from their perfected liens on
substantial assets at the borrower and guaranteeing subsidiaries
as well as a significant level of junior capital beneath their
claims. Similarly, the B1 rating on the unsecured notes, one
level below the Corporate Family Rating, reflects their lower
priority as well as the benefits of up-streamed guarantees from
material domestic subsidiaries. Arvin Capital's trust preferred
issue considers its underlying investment in subordinated notes
of ArvinMeritor, which are not guaranteed by any operating
subsidiaries.

The SGL-2 Speculative Grade Liquidity rating represents good
liquidity over the next twelve months.  Moody's notes that
ArvinMeritor finished fiscal 2006 with US$350 million of
consolidated cash on the balance sheet and is expected to
generate a modest amount of free cash flow during fiscal 2007.  
External sources of liquidity include availability under its
US1US$980 million revolving credit facility with ample cushions
under its financial covenants.

Headquartered in Troy, Michigan, ArvinMeritor, Inc. --
http://www.arvinmeritor.com/-- is a premier US$8.8 billion
global supplier of a broad range of integrated systems, modules
and components to the motor vehicle industry.  The company
serves light vehicle, commercial truck, trailer and specialty
original equipment manufacturers and certain aftermarkets.
ArvinMeritor employs approximately 29,000 people at more than
120 manufacturing facilities in 25 countries.  It maintains 23
facilities in Venezuela, Brazil and Argentina.  ArvinMeritor
common stock is traded on the New York Stock Exchange under the
ticker symbol ARM.


BANCO DO BRASIL: Board Ratifies Stock Split Proposal
----------------------------------------------------
Banco do Brasil said in a filing with securities regulator
Comissao de Valores Mobiliarios that its board has approved a
stock split proposal to create three shares for every existing
share.

Business News Americas that Banco do Brasil's shareholders will
vote on the proposal during a meeting.  

BNamericas did not say when the meeting will take place.

The proposal also needs central bank approval, BNamericas
states.

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

                        *    *    *

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


BANCO NACIONAL: Channeling BRL80MM Into Small Firms Pilot Fund
--------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social SA said in
a statement that it will channel BRL80 million over four years
into a pilot fund to help local small and medium enterprises
that specialize in innovative technology.

Business News Americas relates that the new fund called Criatec
will provide management support and funding for firms
concentrating on areas like:

          -- Information Technology,
          -- biotechnology,
          -- agribusiness,
          -- nanotechnology, and
          -- precision mechanics.

The project is the first of its kind in Banco Nacional's
portfolio of venture capital projects and the first of its kind
in Brazil, BNamericas says, citing Banco Nacional's project
analyst Marceo Spata.

Mr. Spata told BNamericas, "As this is a new project, Banco
Nacional will likely be assessing whether to increase the
capital in 3-4 years."

According to BNamericas, firms with revenues of up to BRL6
million can apply to receive funds.  Banco Nacional has
earmarked 25% of the fund for companies with revenues of up to
BRL1.5 million and 25% for firms of up to BRL4.5 million in
revenues.

Mr. Spata told BNamericas, "We expect to select 10-15 companies
in the first year of the project for investments of between
500,000 and BRL1.5 million."

BNamericas underscores that Banco Nacional expects to select
around 60 small and medium enterprises during the four-year
project.

BNamericas notes that Mr. Spata sees a good result for the
portfolio if 20% of the firms funded are a success.

Criatec is expected to create 3,000 jobs, BNamericas state.

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 BRL46-Mil. Loan to Melton Administradora
---------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social aka BNDES
approved a BRL46 million financing to Melton Administradora de
Bens Ltda., which is directed to the construction of Palladium
Shopping Center Curitiba.  The total investment will reach
BRL110 million and the enterprise will apply BRL64 million by
using its own resources.

The project forecasts the creation of 1,150 jobs during
construction and other 6,400 ones when the new shopping mall of
Curitiba starts operating.  Out of this total, 6,000 jobs will
be in stores and the 400 remaining ones will be in the
condominium, including administration, security, cleaning and
maintenance.

Located in the District of Portao, Central-south zone of the
Capital of Parana, and built on a 43,000 sq. meter of land,
Palladium Shopping Center Curitiba will have a 58,000 sq. meter
rentable gross area and it will be the largest shopping mall of
South Region, with a 182,400 square meters of constructed area.

The project, which includes the construction of a trade tower,
will have 356 stores divided into four floors.  It will have a
1,300-seat food court and a 2,800-space parking lot, which will
enable the circulation of up to 20,000 cars/day.

The project has attracted the Canadian Enterprise Imax, which
presents movies in two and three dimensions, by using giant
screens of up to 10 times larger than the conventional ones.  
Besides the Imax room, there will be a multiplex cinema, with 10
exhibition rooms.

Established in 2002, Melton Administradora de Bens Ltda. is part
of the Tacla Group, which was created in 1932 by the
entrepreneur Mounif Tacla, who is father of the current
controllers and used to operate in the retail market of textiles
and apparels.

In the 80's, the group decided to diversify the investments and
constructed its first shopping mall, the Mounif Tacla, in
Curitiba.  From this time, it opted to continue to operate in
the shopping mall business, thereby deactivating, gradually, its
structure in the retail business of textiles and apparels.

In 1996, the group constructed the shopping mall Crystal Plaza,
in 2000, a unit in the Municipality of Itajai and, in 2003,
another unit in the City of Ponta Grossa, and all of these
projects are under the group's administrative control.

In 2006, BNDES disbursed BRL241 million to shopping malls and
department stores.  In addition to the already financed ones,
BNDES has over six projects for the construction of new shopping
malls in Brazil, which amounts roughly to BRL500 million
investments.

The result is the reactivation of investments in the sector and
reopening, in January of 2005, of BNDES' normal credit lines for
shopping malls.

The chief of the Department of Commerce, Services and Tourism,
Carlos Eduardo Castello Branco, emphasizes the economic
importance of shopping malls, "They function as a filter
investment, as an enhancer element of its yield and, from time
to time, of recovery of degraded areas, and also, they are great
generators of jobs, formal businesses and first job."

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/--


DURA AUTOMOTIVE: RSM Updates Ontario Court on Chapter 11 Cases
--------------------------------------------------------------
RSM Richter Inc., acting as Dura Automotive Systems Inc. and its
debtor-affiliates' information officer, delivered its first
report with the Ontario Superior Court of Justice (Commercial
List) in Canada to:

   (a) provide with background information concerning the
       Debtors, including information with respect to their
       Canadian operations;

   (b) provide updates with respect to developments in the
       Debtors' restructuring proceedings since Nov. 1, 2006;

   (c) summarize and seek approval of its activities since     
       Nov. 1, 2006; and

   (d) recommend that the Ontario Court approve the Debtors'
       request for an extension of its stay of proceedings to
       March 15, 2007.

A full-text copy of RSM Richter's First Report is available for
free at http://ResearchArchives.com/t/s?18a7

RSM Richter reported these material developments with respect to
the Debtors' Canadian operations:

   (1) the Canadian facilities at Bracebridge, Stratford and
       Brantford, comprising the Debtors' Canadian operations,
       have terminated a number of employees:

       A. Hourly Unionized Employees

                               No. of Hourly     No. of Hourly
                                 Employees        Employees as
                Facilities       Terminated       of 11/01/06
                ----------     -------------     -------------
                Bracebridge         57                220
                Stratford           23                238
                Brantford           34                 90

       B. Salaried Employees

                               No. of Salaried  No. of Salaried
                                 Employees        Employees as
                Facilities       Terminated       of 11/01/06
                ----------     -------------     -------------
                Bracebridge          8                 72
                Stratford           --                 42
                Brantford           --                 23

   (2) the Canadian facilities have continued to operate in the
       normal course.  To the extent requested, RSM Richter has
       been assisting the Canadian Operations with common
       "day-one" issues that the facilities faced when they
       entered formal insolvency proceedings.

RSM Richter attended a meeting on December 4, 2006, with the
Debtors and the International Association of Machinists and
Aerospace Workers to inform IAMAW an opportunity to detail its
concerns with respect to various employee issues.  

IAMAW, Local Lodge No. 1927, represents the hourly workforce at
the Stratford Facility.  Local 61 of the Canadian Automotive
Workers' Union represents the hourly workforce at the
Bracebridge Facility while CAW's Local 397 represents the
Brantford Facility's hourly workforce.

Moreover, RSM Richter:

     * reviewed and commented on certain of the Debtors' draft
       application materials;

     * posted copies of various Court materials, including the
       Ontario Court's Initial Order dated Nov. 1, 2006, on its
       Web site;

     * placed a notice regarding the Debtors' Canadian filings
       in The Globe and Mail (National Edition) around
       Nov. 6, 2006;

     * spoke routinely with each Canadian facility in order to
       determine if any critical issues are affecting
       operations;

     * convened periodic conference calls with each of the
       facilities;

     * worked intensively with the Bracebridge Facility to
       assist it to obtain a continued supply of goods and
       services;

     * responded to calls from creditors or suppliers concerning
       the Debtors' proceedings;

     * attended at conference calls with the Canadian Debtors
       and their legal counsel, Davies Ward Phillips and
       Vineberg LLP, to discuss the operational issues and other
       developments; and

     * corresponded with Davies Ward to stay apprised of the
       developments in the Debtors' Chapter 11 proceedings.

                Stay Extended to March 15

At the Debtors' request, Justice Lederman extends to
March 15, 2007, the expiration of the stay enjoining and
restraining creditors and parties-in-interest from initiating or
continuing actions in any court or tribunal in Canada against
the Debtors or that affect the their ability to carry on their
business.

In support of the Debtors' request, RSM Richter informed the
Ontario Court that the Debtors have been diligently pursuing
restructuring initiatives and have been acting in good faith.

The Court approves the activities and conduct of RSM Richter as
set forth in the First Report.

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

The Debtors filed for chapter 11 petition on October 30, 2006
(Bankr. District of Delaware Case No. 06-11202).  Richard M.
Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq.,
and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead
counsel for the Debtors' bankruptcy proceedings.  Mark D.
Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M.
Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are
the Debtors' co-counsel.  Baker & McKenzie acts as the Debtors'
special counsel.  Togut, Segal & Segal LLP is the Debtors'
conflicts counsel.  Miller Buckfire & Co., LLC is the Debtors'
investment banker.  Glass & Associates Inc., gives financial
advice to the Debtor.  Kurtzman Carson Consultants LLC handles
the notice, claims and balloting for the Debtors and Brunswick
Group LLC acts as their Corporate Communications Consultants for
the Debtors.  As of July 2, 2006, the Debtor had
US$1,993,178,000 in total assets and US$1,730,758,000 in total
liabilities.  (Dura Automotive Bankruptcy News, Issue No. 10;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


DURA AUTOMOTIVE: Ontario Ct. Recognizes US Ct.'s Final DIP Order
----------------------------------------------------------------
The Honorable Justice Lederman of the Ontario Superior Court of
Justice (Commercial List) in Canada rules that the Final DIP
Order dated Nov. 21, 2006, of the U.S. Bankruptcy Court for the
District of Delaware is given full effect in all provinces and
territories of Canada.

Justice Lederman previously granted the directors and officers
of Dura Automotive Systems Inc.'s Canadian affiliates a charge
on the Debtors' property not exceeding US$2,500,000 in the
aggregate, as security for the their indemnification obligations
to their directors and officers.

Justice Lederman declared that the Directors' Charge rank
subordinate and junior in priority to the claims, liens, charges
and security interests arising in connection with the first lien
revolver.

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

The Debtors filed for chapter 11 petition on October 30, 2006
(Bankr. District of Delaware Case No. 06-11202).  Richard M.
Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq.,
and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead
counsel for the Debtors' bankruptcy proceedings.  Mark D.
Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M.
Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are
the Debtors' co-counsel.  Baker & McKenzie acts as the Debtors'
special counsel.  Togut, Segal & Segal LLP is the Debtors'
conflicts counsel.  Miller Buckfire & Co., LLC is the Debtors'
investment banker.  Glass & Associates Inc., gives financial
advice to the Debtor.  Kurtzman Carson Consultants LLC handles
the notice, claims and balloting for the Debtors and Brunswick
Group LLC acts as their Corporate Communications Consultants for
the Debtors.  As of July 2, 2006, the Debtor had
US$1,993,178,000 in total assets and US$1,730,758,000 in total
liabilities.  (Dura Automotive Bankruptcy News, Issue No. 10;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


GERDAU SA: Acominas Plant Boosting Structural Profile Capacity
--------------------------------------------------------------
Gerdau SA said in a statement that its Acominas plant is
expected to increase its structural profile capacity to 900,000
tons per year from 450,000 tons per year by 2008.

Acominas is Gerdau's largest mill.  It is based in Ouro Branco
in Minas Gerais.

Business News Americas relates that the investment will total
US$70 million.  It will include other expansions in addition to
new project development.

According to BNamericas, the additional production will go
towards export.  

The expansion is part of a steel capacity increase plan underway
at Acominas to 4.5 million tons per year from 3.0 million tons
per year due for completion at the end of this year, BNamericas
states.

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

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

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

                        *    *    *

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

                        *    *    *

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


PETROLEO BRASILEIRO: Board OKs Update on Investment Budget Plan
---------------------------------------------------------------
Petroleo Brasileiro SA aka Petrobras' board of directors has
approved the update of Petrobras System's Annual Business Plan
for 2007.  The budget plan detailing process, to formulate the
2007 Annual Business Plan, pointed to the need to adjust the
budget by incorporating:

    -- new project inclusions,
    -- priority project anticipation and changes in scope,
    -- cost adjustments and
    -- updates to more current accounting practices.

This update resulted in a BRL7,542 million addition to the
budget, topping out at a total investment of BRL54,998 million
for 2007 (up from the previous estimate of BRL47,456 million).

This BRL7,542 million budget increase seeks to prioritize and
optimize the company's project portfolio in order to update and
adapt the goals set forth by the 2007-2011 Business Plan.  The
proposed updates derive mainly from:

   * BRL3,328 million for projects connected to the PLANGAS --
     the Gas Production Anticipation Plan -- aimed at quickly  
     boosting the natural gas offer to the Brazilian market;

   * BRL2,046 million derived from project inclusions (BRL3,108
     million) and exclusions (BRL1,062 million) from the
     portfolio that had originally been planned for 2007;

   * BRL1,175 million resulting from project execution cost
     increases;

   * BRL908 million coming from project postponements and
     anticipations;

   * BRL711 million derived from changes made to the accounting
     rule that requires programmed stoppages expenses at the
     units to be classified as investments; and

   * A reduction in the order of BRL626 million caused by
     changes made to project scopes, to the business model, as
     well as other factors.

                             E&P

   * Relevant additions -- Investments in the PLANGAS, with the
     highlight on the inclusion of the Cacimbas and
     Caraguatatuba gas treatment unit, anticipation of the
     Jabuti project, anticipation of Marlim Sul's development,
     on the pilot Bonito Field production plant, and on new
     projects, among which the Parque das Conchas' development.

   * Relevant reductions -- Project postponement, including
     Albacora Complementar, Marlim Leste/P-53 development,
     well-drilling in Golfinho, and investment scope changes
     for new discoveries.

                         Downstream

   * Relevant additions -- Investment in the PLANGAS and
     COMPERJ anticipation.

   * Relevant reductions -- Project postponements, including
     modernizations to a few refining units and to the ethanol
     flow system, and other infrastructure projects.

                        Gas & Energy

   * Relevant additions -- Investments in the PLANGAS focusing
     on gas pipelines, investments in biofuels and in power
     generated using renewable sources.

   * Relevant reductions -- Project exclusions, changes to the
     business model (Nova Transportadora do Sudeste), and scope
     changes.

                       International

   * Relevant additions -- Pasadena refinery and new E&P
     projects in Latin America, Turkey, and Angola, among
     others.

   * Relevant reductions -- Project exclusions in Nigeria, in
     the USA, Argentina, and others.

The changes made to the 2007 budget treat strategic project
priorization realistically striving to optimize the portfolio
and to incorporate costs raises in the sector's input and basic
material supply chain in order for it to be possible to achieve
the goals set forth by the Business Plan in a profitable manner
and to maximize the company's value.

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: Plant Project to Cost More Than Planned
------------------------------------------------------------
Petroleo Brasileiro SA, the state-owned oil company of Brazil,
told the Associated Press that construction of a planned
refinery, which will process Venezuelan and Brazilian crude,
will cost US$4 billion, far more than previous estimates.

AP relates that the plant, which will be built in Pernambuco,
was estimated to cost US$2.5 billion.

Petroleo Brasileiro chief executive Sergio Gabrielli did not
explain to AP what caused the project's cost to increase.  

According to AP, a joint venture between Petroleo Brasileiro and
Petroleos de Venezuela, its Venezuelan counterpart, is expected
to process half its output with Venezuelan crude and the other
half with Brazilian petroleum.

Mr. Gabrielli told reporters that Petroleo Brasileiro will have
a 60% stake in the plant, while Petroleos de Venezuela will have
a 40% stake.

Brazil needs more refining capacity for heavy crude to be able
to stop importing diesel fuel and light crude in coming years,
AP states.

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: Restarting P-55 Construction Tender
--------------------------------------------------------
A spokesperson of Petroleo Brasileiro SA, the state-owned oil
company of Brazil, told Business News Americas that the firm
will restart a tender to construct the P-55 semi-submersible
platform.

According to BNamericas, this will become the second tender for
offshore producing units that Petroleo Brasileiro has called off
in recent weeks.

Petroleo Brasileiro said that prices offered in bidding are too
high, BNamericas relates.

Published reports say that Brazilian-Singapore shipyard Keppel-
Fels offered the lowest price at US$1.65 billion, against the
only other bidder Atlantico Sul consortium.

Meanwhile, Petroleo Brasileiro had disclosed plans to restart
bidding for the P-57 floating production, storage and offloading
vessel due to low bids, BNamericas states.  Bidders for the
project included the Atlantico Sul consortium and Singapore-
Brazilian shipyard Maua-Jurong with prices of about US$1.1
billion.

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.


SANMINA-SCI: S&P Holds NegWatch on BB- Rating on Profit Concerns
----------------------------------------------------------------
Standard & Poor's Ratings Services left its 'BB-' ratings on San
Jose, Calif.-based Sanmina-SCI Corp. on CreditWatch with
negative implications, where they were placed on Aug. 14, 2006,
because of delayed financial-statement filings.  While the
company has filed required statements, the ratings remain on
CreditWatch, reflecting concerns about the company's
deteriorating profitability levels, negative cash flow and
weakening credit protection measures.

For the quarter ended Sept. 30, 2006, EBITDA margin dropped to
about 2.7% from a historic range of between 3.5% and 4.0%, after
adjusting for one-time charges related to the termination of its
original design manufacturer initiative and the stock-option
investigation.

"Weakened profitability is attributable to ongoing
inefficiencies in the migration of production from closed
European facilities to new, low-cost plants," said Standard &
Poor's credit analyst Lucy Patricola. In addition, the company
continues to experience declining revenue and poor profitability
in its personal computing business, down about 20% for the year
and generating a 2% gross profit margin.  Cash flow from
operations continues negative on expanding inventory levels,
resulting in borrowings under its line of credit and declining
cash balances. Debt protection measures weakened, with debt to
EBITDA at 5.2x for the trailing 12 months, up from 4.2x in the
previous quarter.

Standard & Poor's will review the company's first-quarter
results, to be released on Jan. 25, 2007, and assess operating
trends to determine the final rating.   If the company continues
to report execution issues or further weakness in the personal
computing business, causing weak profitability, the rating could
be lowered one notch.

Sanmina-SCI Corp., headquartered in San Jose, California, is one
of the largest electronics contract manufacturing services
companies providing a full spectrum of integrated, value added
solutions.  In Europe, the company has operations in Finland,
France, Ireland, Germany, Sweden, Hungary, and Spain. In Latin
America, it operates in Brazil and Mexico.


TRANSAX INT: Inks US$5.9MM Letter of Intent to Sell MedLink Unit
----------------------------------------------------------------
Transax International Limited has signed a Letter of Intent with
CBGS -- Gestao e Processamento de Infomacoes de Saude Ltda. to
sell its wholly owned Brazil subsidiary Medlink Conectividade em
Saude Ltda. and related intellectual property held by its
subsidiary Medlink Technologies, Inc., for BRL12.625 million or
US$5.9 million.

CBGS is a company created to provide technology services to
companies operating in the health sector in Brazil.  CBGS is a
subsidiary of Companhia Brasileira de Meios de Pagamento.  CBMP
is the leading credit card payment processor in Brazil.

Under specific terms of the Letter of Intent CBGS will pay all
cash and retain operating control of Medlink's assets and
intellectual property rights in Brazil.  The transaction is
subject to operating, financial and legal due diligence, any
closing balance sheet adjustments, and signing of definitive
agreements which both parties anticipate completing by
Feb. 28, 2007.

Stephen Walters, President & CEO of Transax, commented, "We are
pleased to have been able to reach an agreement with CBGS in
monetizing our Brazilian operations.  Transax will continue to
retain certain licensing rights outside of Latin America and IP
rights for the USA market at no cost.  This transaction will
also significantly strengthen our Balance Sheet.  As a result we
intend to pay off all outstanding debts, including the US$1.6
million preferred equity investment by Cornell Capital, as well
as drastically increasing our cash position. Additionally, we
will evaluate future business opportunities and update investors
as warranted."

                     Going Concern Doubt

Moore Stephens, P.C., in New York, raised substantial doubt
about Transax International Limited's ability to continue as a
going concern after auditing the Company's consolidated
financial statements for the year ended Dec. 31, 2005.  The
auditor pointed to the Company's losses, and working capital and
stockholders' deficiencies.

                About Transax International

Based in Miami, Florida, Transax International Limited
(OTCBB: TNSX) -- http://www.transax.com/-- provides hospitals,  
physicians and health insurance companies using health
information management systems to manage coding, compliance,
abstracting and recording of management processes.  The
Company's subsidiaries, TDS Telecommunication Data Systems LTDA
provides services in Brazil; ransax Australia Pty Ltd. provides
those services in Australia; and Medlink Technologies, Inc.,
initiates research and development.

As reported in the Troubled Company Reporter on Dec. 12, 2006,
Transax International's Sept 30, 2006 balance sheet showed
US$2,003,214 in total assets, US$6,179,904 in total liabilities,
resulting in a US$4,176,690 in total stockholders' deficit.




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


AB (ULTIMATE): Shareholders to Gather for Jan. 29 Final Meeting
---------------------------------------------------------------
AB (Ultimate Holdings) Ltd.'s final shareholders meeting will be
on Jan. 29, 2007, at:
          
          Maples Finance Ltd.
          Queensgate House, George Town
          Grand Cayman, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

           Mark Wanless
           c/o Maples Finance Jersey Ltd., 2nd Floor
           Le Masurier House, La Rue Le Masurier
           St. Helier, Jersey JE2 4YE


ASSET TRUST: Final Shareholders Meeting Is Set for Jan. 29
----------------------------------------------------------
Asset Trust Fund Cayman, Inc.'s final shareholders meeting will
be on Jan. 29, 2007, at:
          
          Maples Finance Ltd.
          Queensgate House, George Town
          Grand Cayman, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

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


CAPITAL Z: Shareholders to Convene for Final Meeting on Jan. 29
---------------------------------------------------------------
Capital Z Lancashire GP, Ltd.'s final shareholders meeting will
be at 10:00 a.m. on Jan. 29, 2007, at:
          
          Capital Z Management, LLC, 203 Park
          Avenue South, New York, NY 10003

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:

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


DAIKAI PROPERTIES: Final Shareholders Meeting Is on Jan. 29
-----------------------------------------------------------
Daikai Properties Holding, Inc.'s final shareholders meeting
will be on Jan. 29, 2007, at:
          
          Maples Finance Ltd.
          Queensgate House, George Town
          Grand Cayman, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

           Mark Wanless
           c/o Maples Finance Jersey Ltd., 2nd Floor
           Le Masurier House, La Rue Le Masurier
           St. Helier, Jersey JE2 4YE


FGI LIONS: Shareholders to Gather for Final Meeting on Jan. 29
--------------------------------------------------------------
FGI Lions' final shareholders meeting will be on Jan. 29, 2007,
at:
          
          Maples Finance Ltd.
          Queensgate House, George Town
          Grand Cayman, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

           Mark Wanless
           c/o Maples Finance Jersey Ltd., 2nd Floor
           Le Masurier House, La Rue Le Masurier
           St. Helier, Jersey JE2 4YE


GED ARBITRAGE: Liquidator to Present Wind Up Accounts on Jan. 29
----------------------------------------------------------------
GED Arbitrage Fund Ltd.'s final shareholders meeting will be on
Jan. 29, 2007, at:
          
          Maples Finance Ltd.
          Queensgate House, George Town
          Grand Cayman, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

           Mark Wanless
           c/o Maples Finance Jersey Ltd., 2nd Floor
           Le Masurier House, La Rue Le Masurier
           St. Helier, Jersey JE2 4YE


GLOBAL HOSPITAL: Calls Shareholders for Jan. 29 Final Meeting
-------------------------------------------------------------
Global Hospital Ltd.'s final shareholders meeting will be on
Jan. 29, 2007, at:
          
          Maples Finance Ltd.
          Queensgate House, George Town
          Grand Cayman, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

           Mark Wanless
           c/o Maples Finance Jersey Ltd., 2nd Floor
           Le Masurier House, La Rue Le Masurier
           St. Helier, Jersey JE2 4YE


ISLAMIC FUNDING: Final General Meeting Is Set for Jan. 29
---------------------------------------------------------
Islamic Funding corp. shareholders meeting will be on Jan. 29
at:
          
          Maples Finance Ltd.
          Queensgate House, George Town
          Grand Cayman, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

           Mark Wanless
           c/o Maples Finance Jersey Ltd., 2nd Floor
           Le Masurier House, La Rue Le Masurier
           St. Helier, Jersey JE2 4YE


KASAMA HOLDING: Invites Shareholders for Jan. 29 Final Meeting
--------------------------------------------------------------
Kasama Holding Ltd.'s final shareholders meeting will be at 9:45
a.m. on Jan. 29, 2007, at:
          
          Walkers SPV Ltd.
          Walker House 87 Mary Street
          George Town, Grand Cayman
          KY1-9002 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:

           John Cullinane
           Derrie Boggess
           c/o Walkers SPV Limited, Walker House
           87 Mary Street, George Town
           Grand Cayman, Cayman Islands


PINE HILLS: Sets Final Shareholders Meeting on Jan. 29
------------------------------------------------------
Pine Hills Holding Inc.'s final shareholders meeting will be on
Jan. 29, 2007, at:
          
          Maples Finance Ltd.
          Queensgate House, George Town
          Grand Cayman, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

           Mark Wanless
           c/o Maples Finance Jersey Ltd., 2nd Floor
           Le Masurier House, La Rue Le Masurier
           St. Helier, Jersey JE2 4YE


POWER FUNDING: Shareholders to Gather for Jan. 29 Final Meeting
---------------------------------------------------------------
Power Funding (Cayman Islands) Ltd.'s final shareholders meeting
will on Jan. 29, 2007, at:
          
          Maples Finance Ltd.
          Queensgate House, George Town
          Grand Cayman, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

           Mark Wanless
           c/o Maples Finance Jersey Ltd.
           2nd Floor Le Masurier House, La Rue Le Masurier
           St. Helier, Jersey JE2 4YE


PREDICTION MANAGEMENT: Final Shareholders Meeting Is on Jan. 29
---------------------------------------------------------------
Prediction Management Co.'s final shareholders meeting will be
at on Jan. 29, 2007, at:
          
          Maples Finance Ltd.
          Queensgate House, George Town
          Grand Cayman, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

           John Cullinane
           Derrie Boggess
           c/o Walkers SPV Limited, Walker House
           87 Mary Street, George Town
           Grand Cayman, Cayman Islands


SAPIC-98 (42): Sets Final General Meeting on Jan. 29
----------------------------------------------------
Sapic-98 Reference Fund (42) Ltd.'s final shareholders meeting
will be on Jan. 29, 2007, at:
          
          Fortis Prime Fund Solutions Ltd.
          P.O. Box 2003, Grand Pavilion
          Commercial Centre, 802 West Bay Road
          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:

           Mark Wanless
           c/o Maples Finance Jersey Ltd., 2nd Floor
           Le Masurier House, La Rue Le Masurier
           St. Helier, Jersey JE2 4YE


SHIHARAI DAIKOU: Calls Shareholders for Final Meeting on Jan. 29
----------------------------------------------------------------
Shiharai Daikou Gaisha's final shareholders meeting will be on
Jan. 29, 2007, at:
          
          Maples Finance Ltd.
          Queensgate House, George Town
          Grand Cayman, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

           Mark Wanless
           c/o Maples Finance Jersey Ltd., 2nd Floor
           Le Masurier House, La Rue Le Masurier
           St. Helier, Jersey JE2 4YE


SPINNAKER CDO: Sets Final Shareholders Meeting on Jan. 29
---------------------------------------------------------
Spinnaker CDO Ltd.'s final shareholders meeting will be on
Jan. 29, 2007, at:
          
          Maples Finance Ltd.
          Queensgate House, George Town
          Grand Cayman, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

           Mark Wanless
           c/o Maples Finance Jersey Ltd., 2nd Floor
           Le Masurier House, La Rue Le Masurier
           St. Helier, Jersey JE2 4YE


TR INVESTMENTS: Calls Shareholders for Final Meeting on Jan. 29
---------------------------------------------------------------
TR Investments Ltd.'s final shareholders meeting will be on
Jan. 29, 2007, at:
          
          Maples Finance Ltd.
          Queensgate House, George Town
          Grand Cayman, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

           Mark Wanless
           c/o Maples Finance Jersey Ltd., 2nd Floor
           Le Masurier House, La Rue Le Masurier
           St. Helier, Jersey JE2 4YE




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


BELL MICROPRODUCTS: Terminates Tender Offer for Conv. Sub. Notes
----------------------------------------------------------------
Bell Microproducts Inc. has terminated its previously announced
tender offer to purchase any and all of its US$109,850,000
outstanding 3-3/4 % Convertible Subordinated Notes, Series B due
2024.  The tender offer expired at 9:00 a.m., New York City
time, on Jan. 18, 2007.  All Notes tendered during the tender
offer will be returned to their prior holders at no cost to the
holders and no cash will be paid.

On Dec. 13, 2006, the company announced an offer to purchase any
and all of the Notes at a purchase price equal to US$1,000.00
per US$1,000.00 of the principal amount of the Notes, plus
accrued and unpaid interest to, but excluding, the date on which
the Notes are purchased.  After evaluating available options,
the company determined that termination of the tender offer was
the most prudent course of action.  Pursuant to the Offer to
Purchase and the terms of the company's previously announced
consent solicitation for the Notes, it will be obligated to pay
holders of the Notes their pro rata share of a special interest
payment equal to 8.5% of the outstanding aggregate principal
amount of the Notes.  The company believes it has access to
sufficient resources to fund the special interest payment and
its working capital requirements.  In exchange for the special
interest payment and an initial consent fee equal to 0.50% of
the aggregate principal amount of the Notes, the company
received a permanent waiver of the SEC periodic reporting
covenants and obligation to deliver such periodic reports to the
trustee under the indenture.

                 About Bell Microproducts

Headquartered in San Jose, California, Bell Microproducts Inc.
(Nasdaq: BELM) -- http://www.bellmicro.com/-- is an
international, value-added distributor of high-tech products,
solutions and services, including storage systems, servers,
software, computer components and peripherals, as well as
maintenance and professional services.  Bell is a Fortune 1000
company that has operations in Argentina, Brazil, Chile and
Mexico.

As previously reported in the Troubled Company Reporter, the  
company said that on Nov. 14, 2006, it received Notices of
Default from Wells Fargo Bank, N.A., with respect to its 3-3/4%  
Convertible Subordinated Notes due 2024 and its 3-3/4%
Convertible Subordinated Notes, Series B due 2024.  Wells Fargo
serves as the trustee for the holders of the Notes.  The
noteholders consented to a waiver of defaults and amend the
indenture to eliminate any provision that would trigger a
default for the failure to file or deliver any reports required
to be filed with the US SEC or the trustee.


BLOCKBUSTER INC: Declares US$18.75 Per Share Cash Dividend
----------------------------------------------------------
Blockbuster Inc.'s board of directors has declared a quarterly
cash dividend of US$18.75 per share on its shares of 7-1/2%
Series A Cumulative Convertible Perpetual Preferred Stock, in
accordance with the terms of the Series A Preferred Stock. The
dividend will be payable on Feb. 15, 2007, to the holders of
record of the Series A Preferred Stock at the close of business
on Feb. 1, 2007.

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

                        *    *    *

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




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


BANCO DEL CAFE: IFC Provides Davivienda US$240 Mil. to Buy Bank
---------------------------------------------------------------
The International Finance Corp. aka IFC told Business News
Americas that it has provided Banco Davivienda with a US$240-
million financing package for its acquisition of Colombian state
bank Banco del Cafe.

The money would also be used to strengthen Banco Davivienda's
capital base, BNamericas says, citing IFC.

BNamericas relates that Banco Davivienda won the auction for
Banco del Cafe in October 2006 with a COP2.21-billion bid.

As reported in the Troubled Company Reporter-Latin America on
Nov. 15, 2006, IFC said it would provide US$200 million for
Banco Davivienda to help fund the latter's purchase of Banco del
Cafe.  Banco Davivienda would finance its acquisition of Banco
del Cafe through a US$125-million bond issue and a US$175-
million capital increase.  

IFC said in a press release that the financing package consists
of a US$75 million direct equity investment and US$165 million
in subordinated debt.

Pablo Verra, IFC investment officer for Banco Davivienda, told
BNamericas that the equity investment boosts IFC's participation
in the bank to 9% from 4% and allows it to appoint one member to
the bank's board.  The equity investment is likely to be
completed shortly, after regulatory approval.

The subordinated debt represents the first cross-border
syndication of Tier 2 capital for a Colombian bank, and the
first syndication of its kind for a multilateral entity,
BNamericas says, citing IFC.  

IFC told BNamericas that it will take on US$65 million of the
debt and the remainder is syndicated among international banks,
pension funds, and insurance firms.  The subordinated debt will
be considered part of Banco Davivienda's capital base.

According to the report, Banco Davivienda will finance the
remainder of the acquisition with:

          -- a US$100-million equity injection from existing
             shareholders,
          
          -- a US$250-million senior debt, and

          -- internal liquidity.

IFC said in a press release that its financing package will help
boost Banco Davivienda's loan portfolio, creating Colombia's
number one bank in mortgage and retail lending and number three
bank in terms of corporate loans.

Mr. Verra told BNamericas, "The reason behind IFC's support to
Davivienda is both our long-term relationship as well as IFC's
desire to promote competition in the banking system.  Davivienda
will have the largest rural network in Colombia behind [state-
owned agricultural development bank] Banagrario, and we are also
interested in increasing banking penetration among that segment
of Colombia's population."

                    About Banco Davivienda

Banco Davivienda is Colombia's third largest bank, with net
loans of US$4.9 billion and deposits of US$6.02 billion in 2006.

                     About Banco del Cafe

Banco del Cafe was formed by the merging of its assets and part
of Granahorrar, a local mortgage bank, in March 2005.  To save
them from bankruptcy when the country was hit by a financial
crisis in the late 90s, the government had taken control of the
banks.




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


* COSTA RICA: State Bank Forms Alliance with Instituto Nacional
---------------------------------------------------------------
Costa Rican state-run Banco Nacional de Costa Rica said in a
statement that it has forged a strategic alliance with state-
owned insurance firm Instituto Nacional de Seguros aka INS to
sell all types of INS insurance products, the former said in a
statement.

Business News Americas relates that Banco Nacional has sold INS
insurance products related to credit activities through BN
Seguros.

According to BNamericas, the partnership will be effective after
the national comptroller's office approves it.

BNamericas underscores that the existing legal framework for
Costa Rica's insurance market establishes a government monopoly
through the INS.  The government monopoly is required by the
Central American-Dominican Republic Free Trade Agreement.

The report says that the Costa Rican congressional economy
committee is debating a bill to end the state insurance
monopoly.

Banco Nacional reported assets of CRC2.19 trillion, performing
loans of CRC904 billion and equity of CRC193 billion as of
Dec. 31, 2006, BNamericas states.

Banco Nacional said in a statement that its written premiums
last year were CRC264 million, while the number of policies sold
increased 15% to 9,044, from 2005.

                        *    *    *

As reported on Aug. 21, 2006, Fitch Ratings upgraded Costa
Rica's country ceiling to BB+ from BB.




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


FALCONBRIDGE: Declares Preferred Share Dividends
------------------------------------------------
Xstrata plc subsidiary Falconbridge Limited has declared these
preferred share dividends:

Falconbridge  Trading      Dividend    Record Date     Payable
Shares         Symbol    Amount Per                       Date
                              Share

Preferred    FAL.PR.A Floating rate     01/31/07      02/12/07
Shares,
Series 2              Floating rate     02/28/07      03/12/07
                      Floating rate     03/30/07      04/12/07

Preferred    FAL.PR.B     CAD0.2863     02/15/07      03/01/07
Shares,
Series 3

Preferred    FAL.PR.H    CAD0.40625     03/15/07      04/01/07
Shares,
Series H

                        About Xstrata

Xstrata plc -- http://www.xstrata.com/-- is a major global
diversified mining group, listed on the London and Swiss stock
exchanges.  The Group is and has approximately 24,000 employees
worldwide, including contractors.

Xstrata does business in six major international commodities
markets: copper, coking coal, thermal coal, ferrochrome,
vanadium and zinc, with additional exposures to gold, lead and
silver.  The Group's operations and projects span four
continents and nine countries: Australia, South Africa, Spain,
Germany, Argentina, Peru, Colombia, the United Kingdom and
Canada. Xstrata holds a 97% stake in Falconbridge.

                     About Falconbridge

Headquartered in Toronto, Ontario, Falconbridge Ltd.
(TSX:FAL.LV)(NYSE:FAL) -- http://www.falconbridge.com/-- is a
leading copper and nickel company with investments in fully
integrated zinc and aluminum assets.  Its primary focus is the
identification and development of world-class copper and nickel
ore bodies.  It employs 14,500 people at its operations and
offices in 18 countries, including Malaysia.  The Company owns
nickel mines in Canada and the Dominican Republic and operates a
refinery and sulfuric acid plant in Norway.  It is also a major
producer of copper (38% of sales) through its Kidd mine in
Canada and its stake in Chile's Collahuasi mine and Lomas Bayas
mine.  Its other products include cobalt, platinum group metals,
and zinc.

                        *    *    *

Falconbridge's CAD150 million 5% convertible and callable bonds
due April 30, 2007, carry Standard & Poor's BB+ rating.




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


PETROECUADOR: Head Implementing Major Reforms in Operations
-----------------------------------------------------------
Petroecuador's president Carlos Pareja has spotted serious
problems in the firm's production, refining and sales operations
and has planned to implement major reforms, Business News
Americas reports.

Mr. Pareja said in a statement, "The challenge is big because
the company not only lacks economic resources but also a
technical plan, especially in managing mature field production."

According to BNamericas, Petroecuador's production levels
decreased 40,000 barrels per day since August 2005, with current
levels at 90,000 barrels per day from Block 15 and 165,000
barrels per day from the rest of Petroecuador's assets.

Mr. Pareja told BNamericas that one of the causes for the
decrease in production is the large social conflict in various
Amazon provinces.

Petroecuador must come up with a technical strategy to manage
the fields using technology and knowledge specifically related
to mature areas, BNamericas says, citing Mr. Pareja.

Mr. Pareja told BNamericas, "What we have been applying has not
given results.  It is not just a problem with wells and
refurbishings; the company has to begin administering the mature
fields with a new technical strategy and if necessary, we will
hire specialists."

Mr. Pareja said that Petroecuador's first step in the refining
sector will be reestablishing trust in the Emeraldas plant,
which faced 171 unscheduled stoppages in last year, BNamericas
notes.

BNamericas relates that Petroecuador will install a US$500-
million residue-processing unit and a plant that will cost over
US$3 billion.

Mr. Paraja told BNamericas that the plant could process over
300,000 barrels per day of crude.  It would be developed with
whichever firm presents the best offer.  Petroleos de Venezuela
or Petroleo Brasileiro could be that company.

BNamericas emphasizes that Petroecuador wants to get rid of
middlemen by selling directly to clients rather than to oil
traders.

The report says that the first step toward the new policy will
take shape in the export of Napo crude to Venezuela in exchange
for derivatives under the framework of the memorandum of
understanding Ecuador signed with the country on Jan. 16.

Mr. Pareja told BNamericas, "We will begin with 36,000 barrels
per day.  In April that volume could increase to 72,000 barrels
per day when current [crude supply] contracts expire."

Oriente crude could reach clients without intermediaries,
BNamericas states, citing Mr. Pareja.

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: Looking for Private Investments for Oil Fields
---------------------------------------------------------
The Ecuadorean government will consider oil investments from
private energy companies, even though allies Venezuela and
Bolivia are in the middle of nationalizing energy industries,
Reuters reports.

Pres. Rafael Correa's plan to fight poverty includes amending
energy deals, foreign debt accords and the nation's
constitution, Reuters relates.

To back Pres. Correa's pledge, the country's finance minister
told Reuters that authorities have talked about potential loans
of about US41 billion from Venezuela.  If and when this plan
pushes through, it would mean the strengthening of Ecuador's
ties with Venezuela.

However, Energy Minister Alberto Acosta assured that this would
not mean that Pres. Correa will follow on Venezuela's
nationalization of the oil and energy sectors.  In fact, he said
that the government will accept and welcome private investment
in electricity generation, Reuters relates.

"We are not proposing a statist line," Minister Acosta said at a
news conference, further saying that planned review of oil
contracts would be "friendly".

Minister Acosta added that the nation will not auction fields
that were formerly run un by U.S. company Occidental Petroleum
Corp, which is currently demanding for a US$1-billion settlement
in damages after the nation has confiscated operations due to a
contract dispute in 2006, Reuters reports.  However, the country
will conduct bidding sessions for oilfields and offshore natural
gas blocks.

                        *    *    *

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.


* ECUADOR: Considers Rejoining Petroleum Trade Organization
-----------------------------------------------------------
Ecuadorean Energy Minister Alberto Acosta said that the nation
has started off the record consultations about its intention to
return to the Organization of Petroleum Exporting Countries or
OPEC and is currently scrutinizing the costs that involved for
this move, Dow Jones Newswires reports.

"The contacts we have initiated are not official yet, we are
seeing which is the best route," Minister Acosta disclosed
during a press conference.  No dates and no information on
whether a final decision would be taken.

Dow Jones relates that Ecuador was one of the lesser crude oil
exporters.  The country was not happy with the membership costs,
saying it was too high and eventually waked out of OPEC.  Until
now, the nation has about US$4.2 million in fees that it owes
the organization.

Minister Acosta told Dow Jones that even though the weighing
factor for the final decision is the cost, the country must also
consider the benefits upon rejoining the OPEC, which includes
political and technological ties with the other members.

Ecuadoreans must consider "all the political support that can
come from OPEC for our sovereign policy; all the technological
support of their experts and advisors for (Ecuador's state) oil
company and also for other areas, all the financial support we
could receive from Arab banks is tied to OPEC," Minister Acosta
told Dow Jones.

                        *    *    *

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.


* ECAUDOR: S&P Lowers Long-Term Sovereign Credit Rating to CCC
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
sovereign credit rating on the Republic of Ecuador to 'CCC' from
'CCC+' and revised its outlook on the rating to negative from
stable.  The short-term sovereign credit rating remains 'C'.
     
According to Standard & Poor's credit analyst Lisa Schineller,
the rating action reflects repeated policy signals by the new
administration that indicate significant downside risk to timely
debt service on its US$3.86 billion of outstanding global bonds.
      
"Electoral rhetoric can often differ from more pragmatic policy
implementation once a candidate assumes office," said Ms.
Schineller.  "However, recently inaugurated President Rafael
Correa and his economic team continue to call for a
restructuring of Ecuador's debt and the subordination of timely
debt service to other political priorities.  Such statements,
coupled with Ecuador's having one of the weakest payment
cultures among Standard & Poor's 113 rated sovereigns, point to
a materially higher risk of nontimely payment of a US$135
million coupon on its Global 2030s due Feb. 15," she added.
     
The 'CCC' rating could be downgraded if government misses the
Feb. 15 coupon payment and suggests that the coupon will not be
paid during the grace period or if an exchange offer is put to
investors.  In the current environment, any exchange offering
proposed by the government to investors would also likely be
considered a coerced exchange and constitute a default according
to Standard & Poor's.
     
Ms. Schineller explained that government arrears reported to be
on the order of US$800 million-US$1 billion underscore the poor
quality and lack of transparency in Ecuador's fiscal execution,
despite the supportive level of international oil prices and an
estimated general government surplus on a cash basis for 2006.  
That said it appears there are sufficient funds to continue
timely service of its financial obligations.  Hence, any
decision by the government to pursue debt restructuring or
suspend debt payments would appear to be motivated by other
political goals.
     
"However, amid continued calls for debt restructuring by key
members of the economic team, various other risk and negative
economic developments could induce an economic crisis in
Ecuador," Ms. Schineller cautioned.  "These include the
stability of deposits in the banking system, especially given
the absence of a lender-of-last-resort under dollarization, the
integrity of dollarization itself, and availability of external
credit lines for the private sector," she concluded.




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


DIGICEL LTD: Awards GSM/EDGE Contracts to Ericsson
--------------------------------------------------
Digicel Group has awarded Ericsson two GSM/EDGE contracts.  
Under the contracts, Ericsson will provide nation-wide GSM/EDGE
networks in El Salvador and Guyana.

The contracts include GSM radio and transmission equipment,
GPRS/EDGE networks, pre-paid systems, network-management
systems, implementation services, and training.  Commercial
deployment is planned for the first quarter of 2007.

Ericsson is now supplying GSM systems in more than 22 markets to
the Digicel Group.  This is the first contract for Ericsson in
Guyana and strengthens the partnership between Ericsson and
Digicel across the region.

Mario Assaad, Digicel Group chief technology officer, says,
"Extending our long-standing partnership with Ericsson into
Guyana and El Salvador ensures the development of an industry-
leading infrastructure, allowing new and innovative service
offerings and dependable network coverage. With large
populations and low mobile-penetration rates, these markets
offer enormous prospects for growth and we are confident that
this solution will leave us well positioned to maximize such
opportunities."

Martin Bjork, Country Manager, Ericsson Jamaica, says, "We are
honored to be selected by Digicel.  The successful cooperation
between our companies will provide world-class technology and
telecom services in El Salvador and Guyana, and reaffirms
Ericsson's position as the leading wireless infrastructure
provider in the region."

                       About Ericsson

Ericsson is the world's leading EDGE supplier, supporting 77 of
the 162 commercially launched EDGE networks.  EDGE brings 3G
capability to the GSM network by substantially increasing data
performance and capacity. With end-user bit rates of up to
250Kbps and support by a majority of modern GSM phones, it
brings cost-efficient mobile Internet to subscribers.

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

                        *    *    *

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

                        *    *    *

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




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


BANCAFE: Executives on Wanted List for Money Laundering & Fraud
---------------------------------------------------------------
The Guatemalan police are looking for 17 former officials of
Bancafe for money laundering and fraud, Reuters reports.

Reuters relates that arrest warrants were issued on Jan. 18 for:

     -- Manuel Eduardo Gonzalez, the Bancafe founder;
     -- Eduardo Gonzalez, the bank founder's son; and
     -- Guatemalan President Oscar Berger's executive secretary.

Eduardo Gonzalez told a local radio station, "We are going to
the authorities voluntarily today (Jan. 19) to clear up this
situation."

According to Reuters, the police are also looking for Bancafe
president Ariel Camardo and other executives and shareholders
for illegal use of savings funds in suspicious investments.

Reuters underscores that three lower level Bancafe officials are
already in prison for their role in the case.

Meanwhile, the police are looking for Banco de Comercio's top
executives accused of exceeding the bank's lending limits for
their own gain, Reuters states.

Bancafe is part of Grupo Financiero del Pais, a financial group
that offers personal, corporate and small business banking.  It
is not connected to Banco del Cafe, a Colombian state-owned
bank.

As reported in the Troubled Company Reporter-Latin America on
Oct. 24, 2006, the Guatemalan central bank, permanently
suspended the operations of Bancafe in the country.  Maria
Antonieta de Bonilla, the president of the central bank, said,
"The board unanimously resolved to suspend operations in Bancafe
due to financial problems derived from the investment of US$204
million in the brokerage Refco."  Bancafe owns US$204 million of
US Treasury bonds held by Refco Inc., a bankrupt commodities
broker.  The Monetary Board of Guatemala said that it decided to
intervene in Bancafe to protect the liquidity and solvency of
the national banking system and to secure and strengthen
national savings.


BANCO DE COMERCIO: Police Looking for Top Officials
---------------------------------------------------
The Guatemalan police are looking for Banco de Comercio's top
executives, who are accused of exceeding the bank's lending
limits for their own gain, Reuters reports.

Reuters relates that the police are also looking for 17 former
officials of Bancafe for money laundering and fraud.  Arrest
warrants were issued on Jan. 18 for:

     -- Manuel Eduardo Gonzalez, the Bancafe founder;
     -- Eduardo Gonzalez, the bank founder's son; and
     -- Guatemalan President Oscar Berger's executive secretary.

The police are also searching for Bancafe president Ariel
Camardo and other executives and shareholders for illegal use of
savings funds in suspicious investments.  Three lower level
Bancafe officials are already in prison for their role in the
case, Reuters states.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Jan. 17, 2007, Banguat, the Guatemalan central bank, has
permanently suspended Banco de Comercio's operations.  Banco de
Comercio asked the Guatemalan banking superintendent to
intervene on Jan. 11.  Willy Zapata, the bank superintendent of
Guatemala, said that Banco de Comercio became unsustainable
after it overextended its loan portfolio.


BANCO INDUSTRIAL: Moody's Affirms Ratings on Bancomer Absorption
----------------------------------------------------------------
Moody's Investors Service affirmed the Baa2 local currency
deposit rating, Ba3 long term foreign currency deposit rating,
and D bank financial strength rating of Banco Industrial S.A.,
Guatemala's largest bank, following the announcement that it
would be absorbing the operations and deposit base of Banco de
Comercio aka Bancomer.

On Jan. 12, 2007, the Guatemalan banking regulator ordered the
suspension of Bancomer's operations and on January 13th, the
regulator announced that Banco Industrial would take charge of
the bank's operations and payments to depositors.  Bancomer is a
small local bank with about 1% of the system's total assets and
deposits, while Banco Industrial represents about 25%.

Banco Industrial's agreement with regulators entails honoring
Bancomer's deposits for up to GTQ900 million or about US$120
million.  Banco Industrial will also be the beneficiary of trust
certificates drawn on a trust established at Financiera
Industrial S.A., an affiliate of Grupo Corporacion Banco
Industrial, that will hold and liquidate a similar amount of
Bancomer's assets.  In addition, the local deposit insurance
fund will provide liquid resources to this trust for the
equivalent of GTQ360 million, which should assist Banco
Industrial in absorbing expected losses on a substantial portion
of Bancomer's assets.

Moody's said it expects this operation to have a minimal impact
on Banco Industrial's financial strength in the short term given
the small size of the Bancomer operation, the level of coverage
of expected losses, and Banco Industrial's management
capabilities and experience, its strong franchise and good
financial fundamentals.  Moreover, Banco Industrial has internal
and external alternative liquidity sources that may be tapped,
if necessary, to meet its obligations.

The agency noted, in addition, that the swift actions recently
taken by the banking regulators to seek resolution of problem
banks and to ensure rapid consolidation of those entities, and
particularly their public commitment to make depositors whole,
support Banco Industrial's deposit ratings at current levels.

Moody's noted that it will continue to monitor the liquidity
position of both Banco Industrial and the system, because the
recent events could still have a negative effect on bank
liquidity in the medium term and, in turn, on Banco Industrial's
financial strength rating.


GOODYEAR TIRE: Discloses Conversion Period for 4.00% Conv. Notes
----------------------------------------------------------------
The Goodyear Tire & Rubber Co. disclosed that its 4.00%
Convertible Senior Notes due June 15, 2034, are now convertible
at the option of the holders and will remain convertible through
March 30, 2007, the last business day of the current fiscal
quarter.

The notes became convertible because the last reported sale
price of the company's common stock for at least 20 trading days
during the 30 consecutive trading-day period ending on Jan. 18,
2007, (the 11th trading day of the current fiscal quarter) was
greater than 120% of the conversion price in effect on that day.  
The notes have been convertible in previous fiscal quarters but
no conversions have taken place.

The company will deliver shares of its common stock upon
conversion of any notes surrendered prior to March 30, 2007.  
Cash will be paid in lieu of fractional shares only.  Issued in
June 2004, the notes are currently convertible at a rate of
83.0703 shares of common stock per US$1,000 principal amount of
notes, which is equal to a conversion price of US$12.04 per
share.

There is currently US$350 million in aggregate principal amount
of notes outstanding.

If all outstanding notes are surrendered for conversion, the
aggregate number of shares of common stock issued would be
approximately 29 million.  The notes could be convertible after
March 31, 2007, if the sale price condition described above is
met in any future fiscal quarter or if any of the other
conditions to conversion set forth in the indenture governing
the notes are met.

Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company
(NYSE: GT) -- http://www.goodyear.com/-- is the world's largest
tire company.  The company manufactures tires, engineered rubber
products and chemicals in more than 90 facilities in 28
countries.  Goodyear Tire has marketing operations in almost
every country around the world including Chile, Colombia,
Guatemala and Peru in Latin America.  Goodyear employs more than
80,000 people worldwide.

                        *    *    *

As reported in the Troubled Company Reporter on Jan. 9, Fitch
Ratings affirmed its ratings on Goodyear Tire & Rubber Co. and
removed them from Rating Watch Negative where they were placed
on Oct. 18, 2006, when the company announced a US$975 million
drawdown of its bank revolver.  Fitch affirmed Goodyear's Issuer
Default Rating at B.  Fitch said the Rating Outlook is Negative.




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


* HONDURAS: Won't Continue Take Over of Oil Storage Tanks
---------------------------------------------------------
The Honduran government disclosed on Jan. 19 that it will repeal
its decision to take over Exxon Mobil's and Chevron Corp.'s oil
storage terminals after the U.S. ambassador warned that the
decision could have "serious" consequences, the Associated Press
reports.

According to the same report, the government made the
announcement after presidential legal affairs adviser Enrique
Flores talked with the executives from Cheveron, Esso and Shell.  
It has been decided that the government will instead use the
storage terminal of Distribuidora de Productos de Petroleos SA.

In connection with this, ConocoPhillips' construction of the
facilities could take up to a year, the AP relates.  

As reported in the Troubled Company Reporter on Jan. 16, 2007,
Honduran Pres. Manuel Zelaya made the initial announcement to
take over the private companies' terminals as part of a measure
to drive down fuel prices and to go ahead with the deal with
ConocoPhillips for the company to import at least 8.4 million
barrels of gasoline and diesel a year.

Even though the president's announcement was criticized by the
business sector, the private companies assured that they won't
be leaving the country, the AP continues.

                        *    *    *

Moody's Investor Service assigned these ratings on Honduras:

                     Rating     Rating Date

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




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


AIR JAMAICA: J$2B Gov't Aid to Airline Better Spent on Others
-------------------------------------------------------------
Industry players told the Jamaica Gleaner that the Jamaican
government's J$2 billion yearly commitment to keep Air Jamaica
in service would be better spent on modernizing port facilities
or on marketing Jamaica as a premiere tourist destination.

The promises of a better future for Air Jamaica since being
reacquired by the government don't seem to be happening, The
Gleaner relates, citing industry players.  

The Gleaner underscores that the Gordon 'Butch' Stewart-led Air
Jamaica Acquisition Group returned the management of the airline
to the Jamaican government in December 2004, after 10 years.  
Finance Minister Omar Davies has recently restated the
government's decision to provide a subsidy of US$30 million or
JUS$2 billion per year to keep Air Jamaica operating.  He has
instructed senior management to restructure the company to
operate within that financial window.

The government should consider carefully before further
injecting money into Air Jamaica and waste anymore of the
taxpayers' money, the report notes, citing industry players.

Junior Chambers, a Jamaican pilot based in Florida, told The
Gleaner, "The hope that Air Jamaica will somehow find its way is
almost like trying to win the lottery.  Just imagine the
benefits to be had in using the Air Jamaica money to market
Jamaica aggressively overseas in both Europe and the United
States.  By doubling or tripling our advertising budget, we
would be talking about six million visitors instead of the three
million we had last year."

According to The Gleaner, Jamaica received three million
visitors in 2006.  This was achieved despite the fact that the
murder rate was rising, negatively affecting the nation's image.

"We had a record three million visitors last year; can you
imagine what that figure would be if we didn't have the crime
problem?" Jamaica's Prime Minister Portia Simpson told The
Gleaner.

Percy Mesquito, owner of the Marine View Hotel in Ocho Rios,
explained to The Gleaner, "The equation is simple.  Put US$15
million of the Air Jamaica US$30 million subsidy into marketing
Jamaica overseas and the other US$15 million into expanding the
Reynolds Pier here in Ocho Rios and it would triple tourist
arrivals.  The returns would be so great that Jamaica would have
money to go into the social services like education and health
care."

"It is a fact that Air Jamaica has never done well under state
ownership.  Say whatever you want to say about the previous
owners but what they did was to use the airline as a marketing
tool for Jamaica.  I say no more money for the airline; use the
resources to upgrade the ports where we can get eight to 10
ships per day," Raymond Thompson, a businessman in St. Mary,
commented to The Gleaner.

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.


AIR JAMAICA: Planes Replacement May Boost Expenses, Workers Say
---------------------------------------------------------------
Air Jamaica's maintenance technicians told the Jamaica Gleaner
that the replacement of Airbus system with 14 Boeing 737-300
airplanes would increase the airline's operating expenses by
US$1.1 billion.

As reported in the Troubled Company Reporter-Latin America on
Nov. 8, 2006, Air Jamaica considered replacing its modern fleet
of Airbus aircraft with old Boeing 737-300s and 757s.  Air
Jamaica would replace A320/321s with the 22-year-old 737-300 and
757s.  The airline would retain two A340s, as no 767
replacements are available.  The replacement of aircrafts was
part of a plan Air Jamaica presented to the Cabinet's sub-
committee.

Six of the 14 new fleet were 5% less fuel-efficient, while eight
had a fuel efficiency of over 15%, The Gleaner says, citing Mr.
Conway.

The Gleaner underscores that Air Jamaica will not use 737-300
aircrafts for the London and Los Angeles routes.

According to The Gleaner, the replacement proposal presented by
Air Jamaica's Chief Executive Officer and chairperson OK Melhado
is aimed at cutting at least 50% of the US$100 million that the
airlines spends yearly.

The Gleaner relates that Air Jamaica technician Austin Ferguson
told the select committee examining the airline's financial and
operational state, "Air Jamaica is fully integrated in the
Airbus system since 2001.  The switch to a Boeing 'classic'
fleet means introduction costs of up to US$16 million and
recurrent yearly cost of another US$4 million."

The report says that Air Jamaica lost US$120 million in 2005,
increasing its accumulated deficit over a decade to US$953
million.  In December 2005 Air Jamaica's current liabilities
exceeded current assets by US$92 million.  Air Jamaica's auditor
Mair Russell Associates Ltd. had said, "Continuation as a going
concern is dependent on continued shareholder support, obtaining
the necessary funding and future profitable operations."

The limited range of the 737-300 prevents it from flying longer
than 1,400 nautical miles to destinations like Los Angeles,
Ontario and New York.  The aircraft's lack of range would force
Air Jamaica to introduce more 757-200s to maintain the formal
schedule, The Gleaner notes, citing Mr. Ferguson.

Mr. Ferguson told The Gleaner, "The lower seating of the Boeing
fleet represents a loss in revenue of over US$5 million per
year."

The technicians told The Gleaner that if Air Jamaica wants to
decrease its operating costs, it should lease cheaper A320 and
A321 aircrafts since flying a 757-200 on the routes served by
the A321 would cost only US$74,000 a month more per aircraft.

The technicians explained to The Gleaner, "A new Airbus fleet
with lower lease rates could account for US$21 million savings
in direct operating costs (compared to) the Boeing Fleet.  This
could add up to US$31 million if more 757-200 should be needed
to cover the 737-300's lack of range."

However, Air Jamaica executives denied to The Gleaner that the
replacement of planes would result to more expenses.  They
claimed that the technicians were being influenced by Airbus.

Mr. Conway told The Gleaner, "We certainly have the data
provided by Airbus; we also have the data provided by Boeing.  
Certainly each one of those entities will bias the information
to what makes them look good."

However, Air Jamaica's pilots, represented by the Jamaican
Airline Pilots' Association or JALPA, said in before the select
committee that they could not take a definitive position on the
plans to acquire the new fleet since they were unaware of the
airline's reorganization plans, according to The Gleaner.

JALPA said in a statement, "We are not in possession of a copy
of the company's proposed business plan.  As we are unable to
give a comprehensive analysis of the strategy being pursued."

As previously reported, the pilots had also said in November
that the transition to the Boeing planes would be difficult.  
The pilots were concerned on Boeing 737-300s' range, age, safety
record, and fuel efficiency and Air Jamaica's current leases
with Airbus and its ability to sub-lease to another party and
the risk factors involved.

"Air Jamaica has need of an aircraft with the capability of
carrying a full load of passengers with all the checked baggage
and cargo.  One of the aircraft being considered has this
capability," JALPA told The Gleaner.

Mair Russell Associates Ltd. can be reached at:

          3 Haughton Avenue, Kingston 10
          Kingston, Jamaica
          Phone: (876) 926-2597
                 (876) 926-2020
                 (876) 926-4513

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

                        *    *    *

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


DYOLL INSURANCE: Liquidation Delayed
------------------------------------
Dyoll Insurance Co.'s liquidation was held up, as the Jamaican
courts try to decide whether the Financial Services Commission's
effort to boost its US$5 million required deposit for Dyoll
Insurance was legal, the Jamaica Observer reports.

According to The Observer, increasing the commission's deposit
excluded creditors in Cayman Islands from receiving a payout of
that money, because the deposits can only be paid to
policyholders in Jamaica.

The Observer relates that since the majority of Dyoll Insurance
policyholders live in Cayman Islands, many thought the
commission's move was wrong and suspicious, as the increased
deposit occurred the day before a temporary manager was
appointed over Dyoll Insurance and was six times more than the
US$750,000 original amount.

Dyoll Insurance's Joint Liquidator Ken Krys commented to The
Observer that the liquidators are frustrated by how long it is
taking the Jamaican courts to move on the issue.  He said, "The
liquidators are frustrated by the lack of progress on key
matters.  One being the settlement with the FSC (Financial
Services)."

Mr. Krys told The Observer, "The judge requested information on
certain types of creditors, which we provided last year, but we
have yet to hear back from the judge.  We need to know how to
proceed, but the courts have been slow to respond."

The Observer underscores that what the liquidators in Cayman
Islands and Jamaica are hoping for is that the US$5 million will
be put into a general pool, which will be distributed to all
creditors on a percentage basis.  

The Cayman Islands Monetary Authority or CIMA is holding KYD1.5
million on deposit for Dyoll Insurance creditors, The Observer
notes.  CIMA has agreed that it will put in a fair amount of
those funds into the general pool for all creditors if the
commission also gives its funds.  

Unless the Jamaican courts come up with a decision, the US$5
million on deposit with the commission and KYD1.5 million with
CIMA will continue to remain in the bank as creditors in Jamaica
and Cayman Islands wait for partial payouts, The Observer
states.

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




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


AXTEL SAB: Avantel Buy Cues Moody's to Confirm Ba3 Family Rating
----------------------------------------------------------------
Moody's Investors Service has confirmed Axtel, S.A.B. de C.V.'s
Ba3 corporate family rating and changed the rating outlook to
stable.  The rating actions incorporate the consequences of the
company's US$515 million worth acquisition of Avantel, which was
financed with debt.

This issue is affected:

   -- US$162.5 million of 11% Senior Unsecured Notes due 2013.

The acquisition of Avantel triggered a significant increase in
Axtel's debt, with the negative impact on credit metrics
characterized by adjusted debt to EBITDA ratio reaching 2.4x
post acquisition for 2007 (which includes a full year of EBITDA
contribution from Avantel) from 1.5 times for last twelve months
September 2006 pre-acquisition.  In addition, EBITDA margins for
new Axtel will fall amid the incorporation of Avantel.  However,
the Ba3 rating confirmation was based on the continued strength
of Axtel's legacy business, and Moody's positive perception of
the acquisition since it increased Axtel's scale and market
presence, widened the company's product base and improved the
composition of the customer base.  Moody's specially noted the
improved revenue mix post-acquisition with local services
representing now only 40% from 72% pre-acquisition and business
customers representing 80% of total, up from 67% pre-
acquisition.  In addition, it is Moody's expectation that,
despite this large size acquisition, Axtel will successfully
integrate Avantel to its operations with a positive impact on
top line from the offering a wider number of services to both
Axtel's and Avantel's current customers.  Furthermore, it is
positive that directors from Cemex, an indirect shareholder, are
bringing in expertise from pevious acqusitons to assist in the
integration process. Synergies from organization restructure and
network/information technology efficiencies, among others, will
be slow to realize but positive to the combined cash flow,
especially by the end of 2008.  These favorable operating
results from the acquisition are a plus on an already successful
business strategy from Axtel, which merited a rating upgrade to
Ba3 from B1 in August 2006.

Sources of funds for the acquisition included a US$205 million
5-year banking loan and a US$310 million bridge loan, maturing
in May 2008.  Despite the refinancing risk relate to the bridge
loan, Moody's believes that Axtel should be able to successfully
refinance it with long-term financing.

In August 2006 Axtel's rating outlook was positive based on
Moody's expectation that Axtel would post double-digit growth
rates in the next years and thus improve credit metrics.  The
current stable outlook is now supported by a still strong
leverage ratio of 2.5x adjusted debt/EBITDA for its rating
category offset by a projected lower revenue growth rate and
Moody's expectation that Axtel will take longer to post
comfortable levels of free cash flow.  The stable outlook also
reflects the possibility that synergies coming from the
integration of Avantel into Axtel could evolve less favorably
than estimated by Axtel's management.

A rating upgrade would be merited if Axtel posts a minimum level
of free cash flow equivalent to about 6% of adjusted debt and
leverage below 2.5 times adjusted debt to EBITDA.  Downgrade
momentum would be triggered by continuous low free cash flow to
debt as well as a leverage level higher than 3 times adjusted
debt to EBITDA.

Axtel, with headquarters in the city of Monterrey, Mexico, is a
fixed-line integrated communications company providing local and
long distance telephony, broadband Internet, data and built-to-
suit communications services in 17 cities and long distance
telephone in over 200 cities throughout Mexico.


CINRAM INTERNATIONAL: Declares January 2007 Cash Distribution
-------------------------------------------------------------
Cinram International Income Fund has declared a cash
distribution of CAD0.2708 per unit for the month of January
2007, payable on Feb. 15, 2007, to unitholders of record at the
close of business on Jan. 31, 2007.

Cinram International Limited Partnership has also declared a
cash distribution of CAD0.2708 per Class B limited partnership
unit for the month of January 2007, payable on Feb. 15, 2007, to
unitholders of record at the close of business on Jan. 31, 2007.

The Fund and the Partnership's current annualized distribution
rate is CAD3.25 per unit, payable in monthly distributions of
CAD0.2708 per unit.  In accordance with the distribution policy
of both the Fund and the Partnership, unitholders of record at
the close of business on the last business day of each calendar
month are paid a distribution on or about the 15th day of the
following month.

Cinram International Inc. (TSX: CRW.UN) - http://www.cinram.com/
-- an indirect wholly owned subsidiary Cinram International
Income Fund, provides pre-recorded multimedia products and
related logistics services.  With facilities in North America
and Europe, Cinram International Inc. manufactures and
distributes pre-recorded DVDs, VHS video cassettes, audio CDs,
audio cassettes and CD-ROMs for motion picture studios, music
labels, publishers and computer software companies around the
world.  The company has sales offices in Mexico.

                        *    *    *

As reported in the Troubled Company Reporter on Nov. 16, 2006,
Standard & Poor's Ratings Services said it revised its outlook
on Cinram International Inc., a wholly owned indirect subsidiary
of Cinram International Income Fund, to negative from stable.
At the same time, Standard & Poor's affirmed its 'BB-' long-term
corporate credit rating and its 'BB-' bank loan rating, with a
recovery rating of '4', on prerecorded multimedia manufacturer
Cinram.


FORD MOTOR: Eyes Partnership with Toyota
----------------------------------------
Ford Motor Co. is considering an agreement with Toyota Motor
Corp. after the mid-December talks between Ford Chief Executive
Alan Mulally and Toyota Chairman Fujio Cho, Norihiko Shirouzu
and Jeffrey McCracken at The Wall Street Journal reports.  The
meeting has no specific details, according to people familiar
with the matter.

WSJ says the meeting has ended for more than two hours citing a
deal to meet again soon.  A Toyota spokesman disclosed that the
parties did not schedule another meeting but stressed that
Toyota is open-minded to forming a bond to share costs of
developing new technology.

As published in the Troubled Company Reporter on Dec. 27, 2006,
Toyota aims to have a partnership with Ford as a way to ease
potential friction with the U.S. auto industry, according to
Japanese business daily newspaper Nihon Keizai Shimbun.

WSJ relates that Ford could be interested in a partnership with
Toyota that could focus on powertrain technology such as
gasoline-electric hybrid engines or on smaller, four-cylinder
engines.

Analysts quoted by WSJ says it is doubtful Toyota would seek to
buy a Ford stake albeit Toyota's market capitalization far
exceeds Ford's.  Analysts pointed out Ford founder Henry Ford's
descendants who controlled the 40% voting stock as a primary
barrier.  Toyota has avoided large-scale acquisitions and unions
with rival auto makers while Ford has too many financial
troubles to buy a Toyota stake, WSJ says.

Analysts expect Toyota to outsell Ford in the U.S. on an annual
basis as early as this year, WSJ adds.

                      About Ford Motor

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

                        *    *    *

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

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

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


GENERAL MOTORS: Sells More Than 9 Million Vehicles Globally
-----------------------------------------------------------
General Motors Corp. sold 9.09 million cars and trucks around
the world in 2006, according to preliminary sales figures
released.  It marked the third time (2006, 2005, and 1978) the
world's largest automaker has sold more than 9 million vehicles
in a calendar year.

2006 global sales were down less than 1% from the 9.17 million
vehicles sold in 2005, reflecting a number of factors, including
planned cuts of 75,000 vehicles in daily rental fleet sales in
the United States and offsetting growth in other global markets.


"GM had some notable sales successes as we continued to expand
in key growth markets around the world in 2006," John
Middlebrook, GM vice president, Global Sales, Service and
Marketing Operations said.

"In 2006, we saw 18% growth in the Asia/Pacific region, and 17%
growth in the Latin America, Africa, and Middle East region.  
We're also seeing improving results in Europe where we sold more
than 2 million vehicles for the first time."

The expansion of GM's four global brands -- Chevrolet, HUMMER,
Saab, and Cadillac -- is showing concrete signs of success.

Global sales of GM's value brand, Chevrolet, were 4.3 million
vehicles compared with 2005 sales of 4.37 million.  Chevrolet
showed growth in all three regions outside North America, with
the strongest performance in the Latin America, Africa and the
Middle East region, with an additional 19% (144,000 vehicles)
delivered over the 2005 level.  Chevrolet also performed well in
the Asia/Pacific region, which also was up 19%.  There was a 15%
increase in Chevrolet sales in Europe, compared with 2005.  The
Chevrolet Aveo helped Chevrolet field a strong competitor in the
very competitive global small car market.

GM also retains its strong truck portfolio, evidenced by HUMMER
sales that grew nearly 34% globally in 2006, with 82,000
vehicles delivered, compared with 61,000 in 2005.  This
performance was paced by the continued strength of the midsize
H3.  While much of this growth was in the United States (up
26%), HUMMER also saw significant expansion in Mexico and
Canada.

Saab's 2006 global sales set a record at more than 133,000
vehicles.  Saab had its highest sales volume ever in Europe,
exceeding 90,000 vehicles and record sales in Spain, Belgium,
and Canada.

Cadillac posted a sales increase outside of North America last
year, thanks to 22% sales growth in Europe.

Global sales highlights include:

   * At 4.97 million vehicles, 2006 sales outside of the United
     States accounted for about 55% of GM's total global sales,
     growing at close to 7% compared with 2005, outpacing the
     industry average growth rate of 6%.  The industry has seen
     a 10 million vehicle increase in the global automotive
     market in the past five years, and the market now tops 67
     million.

   * In the Asia/Pacific region, GM sales of 1.26 million
     vehicles topped 1 million vehicles for the second
     consecutive year, and GM China saw more than 32% sales
     growth compared with 2005, outpacing the country's industry
     growth rate of 26%.  GM was the top-selling automaker in
     China in 2006, with 877,000 vehicles sold.  For the first
     time, GM sold more Buicks in China (304,000) than in the
     United States (241,000).

   * In the Latin America, Africa and Middle East region, GM
     sales reached an all-time record 1.03 million vehicles,
     exceeding 1 million vehicles for the first time, up 17% in
     volume compared with 2005.  Truck sales were up 21% and car
     sales were up 16%.  GM saw volume increases in 10 of 11
     major Latin America, Africa, and Middle East markets in
     2006.  GM do Brazil set an all-time domestic sales record
     with 410,000 vehicles delivered.

   * In Europe, GM sales -- for the first time -- exceeded
     2 million vehicles, up about 1%.  Growth in Eastern Europe,
     up 59%, led the increase.  Cadillac, Corvette, HUMMER,
     Saab, and Chevrolet set European sales records for their
     brands.  Chevrolet achieved record sales of more than
     340,000 vehicles, up 15%.  Saab sold more than
     90,000 vehicles, beating its previous European sales record
     of 82,000 sold in 2005.

Several of GM's regional brands also experienced notable growth
in 2006.

Opel and Vauxhall sold 1.6 million vehicles, growing share in
14 European markets.  The brands achieved segment leadership
with Meriva and Zafira -- in the monocab segment -- and second
position with Astra in the popular compact segment.

Saturn sales in the United States and Canada were up 5% compared
with 2005, largely on the popularity of the new 2007 Aura, Sky,
and Vue Green Line Hybrid.  Saturn expects stronger sales this
year as it continues the launch of the Outlook crossover and
welcomes the Ion small-car replacement, Astra.

GM Holden sold 147,000 vehicles in 2006 and the brand
strengthened its second-place position in Australia, as the
Commodore remained that country's best-selling car for the 11th
consecutive year.

As GM executes the North America turnaround plan, much media
attention has focused on the global sales horse races between GM
and its competitors.  "Being the largest car company in the
world can't be a focus, it has to be a by-product of giving
people in each market the vehicles they really want.  GM enjoys
that position today," Mr. Middlebrook said.  

"GM employees remain focused on delivering cars and trucks that
lead in design, quality and technology.  We believe our newest
products reflect that commitment.  But no one should question
our continued resolve to compete head-to-head with every
automaker."

                 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 284,000
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.


GLOBAL POWER: Court Extends Lease Decision Period to April 26
-------------------------------------------------------------
The U.S Bankruptcy Court for the District of Delaware further
extended until April 26, 2007, the period within which Global
Power Equipment Group and its debtor-affiliates can assume,
assume or assign, or reject unexpired leases of nonresidential
real property.

As reported in the Troubled Company Reporter on Jan. 3, 2007,
the Debtors told the Court that they have five unexpired leases
of nonresidential real property, including, the Debtors'
headquarters in Tulsa, Oklahoma; two of Williams Group
facilities in Stone Mountain, Georgia and Lakeland, Florida; and
Branden Group facilities in Tulsa, Oklahoma.

Headquartered in Tulsa, Oklahoma, Global Power Equipment Group
Inc. aka GEEG Inc. -- http://www.globalpower.com/-- provides  
power generation equipment and maintenance services for its
customers in the domestic and international energy, power and
infrastructure and service industries.  The Company designs,
engineers and manufactures a range of heat recovery and
auxiliary equipment primarily used to enhance the efficiency and
facilitate the operation of gas turbine power plants as well as
for other industrial and power-related applications.  The
Company has facilities in Plymouth, Minnesota; Tulsa, Oklahoma;
Auburn, Massachusetts; Atlanta, Georgia; Monterrey, Mexico;
Shanghai, China; Nanjing, China; and Heerleen, The Netherlands.

The Company and 10 of its affiliates filed for chapter 11
protection on Sept. 28, 2006 (Bankr. D. Del. Case No 06-11045).
Attorneys at White & Case LLP and The Bayard Firm, P.A.,
represent the Debtors.  The Official Committee of Unsecured
Creditors appointed in the Debtors' cases has selected Landis
Rath & Cobb LLP as its counsel.  As of Sept. 30, 2005, the
Debtors reported total assets of US$381,131,000 and total debts
of US$123,221,000.


GLOBAL POWER: Court Sets April 18 as General Claims Bar Date
------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware set
April 18, 2007, as the deadline for all creditors and
governmental units owed money by Global Power Equipment Group
Inc. and its debtor-affiliates on the account of claims arising
prior to Sept. 28, 2006.

Copies of written proofs of claim must be sent or hand delivered
on or before the April 18 Bar Date to:

     Global Power Equipment Group, Inc.
     c/o Alix Partners LLC
     2100 McKinney Avenue, Suite 800
     Dallas, Texas 75201

The Court also set May 18, 2007, as the deadline for all
creditors, including the Debtors, owed money by co-Debtors,
sureties or guarantors, on accounts of claims arising prior to
Sept. 28, 2006.

Headquartered in Tulsa, Oklahoma, Global Power Equipment Group
Inc. aka GEEG Inc. -- http://www.globalpower.com/-- provides  
power generation equipment and maintenance services for its
customers in the domestic and international energy, power and
infrastructure and service industries.  The Company designs,
engineers and manufactures a range of heat recovery and
auxiliary equipment primarily used to enhance the efficiency and
facilitate the operation of gas turbine power plants as well as
for other industrial and power-related applications.  The
Company has facilities in Plymouth, Minnesota; Tulsa, Oklahoma;
Auburn, Massachusetts; Atlanta, Georgia; Monterrey, Mexico;
Shanghai, China; Nanjing, China; and Heerleen, The Netherlands.

The Company and 10 of its affiliates filed for chapter 11
protection on Sept. 28, 2006 (Bankr. D. Del. Case No 06-11045).
Attorneys at White & Case LLP and The Bayard Firm, P.A.,
represent the Debtors.  The Official Committee of Unsecured
Creditors appointed in the Debtors' cases has selected Landis
Rath & Cobb LLP as its counsel.  As of Sept. 30, 2005, the
Debtors reported total assets of US$381,131,000 and total debts
of US$123,221,000.  The Debtors' exclusive period to filed a
chapter 11 plan expires on Jan. 26, 2007.


GLOBAL POWER: U.S. Trustee Amends Creditors Committee Membership
----------------------------------------------------------------
Kelly Beaudin Stapleton, the U.S. Trustee for Region 3, amends
the membership of the Official Committee of Unsecured Creditors
in Global Power Equipment Group Inc. and its debtor-affiliates'
chapter 11 case, to reflect the resignation of D.B. Zwirn
Special Opportunity Fund, L.P.

The Creditors Committee is now composed of:

          1. Steelhead Investments Ltd.
             Attn: Jeffrey D. Estes
             c/o HBK Investments L.P.
             300 Crescent Court
             Dallas, TX 75201
             Phone: 214-758-6107
             Fax: 214-758-1207;

          2. Kings Road Investments Ltd.
             Attn: Erik M.W. Casperson
             598 Madison Avenue, 14th Floor,
             New York, NY 10022
             Phone: 212-359-7331
             Fax: 212-359-7303;

          3. Aarding Thermal Acoustics B.V.,
             Attn: Norbert Pieterse/Hugo V. Vredendaal
             Industrieweg 5g
             Nunspeet, The Netherlands, 8071 C.S.
             Phone: 31-341-252635
             Fax: 31-341-262112;

          4. Fan Group Inc.
             Attn: John E. Tinsley
             1701 Terminal Road
             Suite B
             Niles, MI 49120
             Phone: 269-687-1216
             Fax: 269-683-2789;

          5. Turner Industries, Inc.
             Attn: Don Wendt, 1700 South Westport Drive
             Port Allen, LA 70767,
             Phone: 225-376-4157
             Fax: 225-376-4176; and

          6. Cogburn Bros. Inc.
             Attn: Scott Sullivan, 3300 Faye Rd.
             Jacksonville, FL 32226
             Phone: 904-358-7344
             Fax: 904-358-0446.

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

Headquartered in Tulsa, Oklahoma, Global Power Equipment Group
Inc. aka GEEG Inc. -- http://www.globalpower.com/-- provides  
power generation equipment and maintenance services for its
customers in the domestic and international energy, power and
infrastructure and service industries.  The Company designs,
engineers and manufactures a range of heat recovery and
auxiliary equipment primarily used to enhance the efficiency and
facilitate the operation of gas turbine power plants as well as
for other industrial and power-related applications.  The
Company has facilities in Plymouth, Minnesota; Tulsa, Oklahoma;
Auburn, Massachusetts; Atlanta, Georgia; Monterrey, Mexico;
Shanghai, China; Nanjing, China; and Heerleen, The Netherlands.

The Company and 10 of its affiliates filed for chapter 11
protection on Sept. 28, 2006 (Bankr. D. Del. Case No 06-11045).
Attorneys at White & Case LLP and The Bayard Firm, P.A.,
represent the Debtors.  The Official Committee of Unsecured
Creditors appointed in the Debtors' cases has selected Landis
Rath & Cobb LLP as its counsel.  As of Sept. 30, 2005, the
Debtors reported total assets of US$381,131,000 and total debts
of US$123,221,000.  The Debtors' exclusive period to filed a
chapter 11 plan expires on Jan. 26, 2007.


GRUPO FINANCEIRO: Completes Acquisition of Uniteller
----------------------------------------------------
Grupo Financeiro Banorte said in a filing with the Mexican stock
exchange that it has completed its acquisition of Uniteller, a
New Jersey-based remittances firm, for US$19 million.

According to Business News Americas, the acquisition was
conducted through Banorte USA.  It was disclosed in April 2006
and received regulatory approval in the 41 US states where
Uniteller operates.

Grupo Financiero posted MXN205 billion in assets as of
Sept. 30, 2006, BNamericas states.

Grupo Financiero Banorte SA de CV is a holding company that
operates, through its subsidiaries, in the Mexican banking
industry.  The company's main activities include commercial,
personal and investment banking, securities trading, insurance,
pension funds, leasing and credit financing.  Its two main
subsidiaries are Banorte (96.11%) and Bancentro (99.99%), which
both offer personal and commercial banking services such as
credit and debit cards, insurance products, savings accounts and
mortgage financing.  As of Dec. 31, 2005, Grupo Financiero
Banorte run a total of 986 offices and over 2,800 automated
teller machines across Mexico.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Aug. 2, 2006, Fitch upgraded the individual and Issuer Default
Ratings of Mexico's Grupo Financiero Banorte and Banco Mercantil
del Norte as:

Grupo Financiero Banorte and Banco Mercantil del Norte:

   -- Foreign & local currency IDR to 'BBB' from 'BBB-';
   -- Short-term local currency to 'F2' from 'F3'; and
   -- Individual to 'C' from 'C/D'.

Fitch said ratings outlook is stable.


NORTEL NETWORKS: Declares Preferred Share Dividends
---------------------------------------------------
Nortel Networks Corp.'s subsidiary Nortel Networks Limited's
board of directors declared a dividend in respect of each of the
months of January and February on each of the outstanding
Cumulative Redeemable Class A Preferred Shares Series 5 and the
outstanding Non-cumulative Redeemable Class A Preferred Shares
Series 7.

The dividend amount for each series is calculated in accordance
with the terms and conditions applicable to each respective
series, as set out in the company's articles.  The annual
dividend rate for each series floats in relation to changes in
the average of the prime rate of Royal Bank of Canada and The
Toronto-Dominion Bank during the preceding month and is adjusted
upwards or downwards on a monthly basis by an adjustment factor
which is based on the weighted average daily trading price of
each of the series for the preceding month, respectively.  The
maximum monthly adjustment for changes in the weighted average
daily trading price of each of the series will be plus or minus
4.0% of Prime.  The annual floating dividend rate applicable for
a month will in no event be less than 50% of Prime or greater
than Prime.  

The dividend on each series in respect of the month of January
is payable on Feb. 12, 2007, to shareholders of record of such
series at the close of business on Jan. 31, 2007.  The dividend
on each series in respect of the month of February is payable on
March 12, 2007, to shareholders of record of such series at the
close of business on Feb. 28, 2007.

Headquartered in Ontario, Canada, Nortel Networks Corp.
(NYSE/TSX: NT) -- http://www.nortel.com/-- is a recognized
leader in delivering communications capabilities that enhance
the human experience, ignite and power global commerce, and
secure and protect the world's most critical information.
Serving both service provider and enterprise customers, Nortel
delivers innovative technology solutions encompassing end-to-end
broadband, Voice over IP, multimedia services and applications,
and wireless broadband designed to help people solve the world's
greatest challenges.  Nortel does business in more than 150
countries, including Mexico in Latin America.

                        *    *    *

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

Dominion Bond Rating Service confirmed the long-term ratings of
Nortel Networks Capital Corporation, Nortel Networks
Corporation, and Nortel Networks Limited at B (low) along with
the preferred share ratings of Nortel Networks Limited at Pfd-5
(low).  DBRS says all trends are stable.

DBRS confirmed B (low) Stb Senior Unsecured Notes; B (low) Stb
Convertible Notes; B (low) Stb Notes & Long-Term Senior Debt;
Pfd-5 (low) Stb Class A, Redeemable Preferred Shares; and Pfd-5
(low) Stb Class A, Non-Cumulative Redeemable Preferred Shares.


SONIC: 2007 1st Fiscal Qtr. Net Income Decreases to US$15.3 Mil.
----------------------------------------------------------------
Sonic Corp. has announced the results for the first quarter of
fiscal 2007, which ended Nov. 30, 2006.

Highlights of the company's performance included:

   -- System-wide same-store sales growth of 3.4%;

   -- The opening of 37 new drive-ins versus a total of 33 in
      the first quarter last year;

   -- A 9% increase in total revenues to US$174.8 million from
      US$159.8 million in the prior-year period;

   -- An 11% increase in income from operations to US$30.5
      million from US$27.6 million in the year-earlier period;
      and

   -- Lower net income for the quarter, down 7% to US$15.3
      million from US$16.4 million for the first quarter last
      year, because of higher interest and debt extinguishment
      expenses that are reflected in the US$5.7 million increase
      in net interest expense.

Commenting on the announcement, Clifford Hudson, chairman and
chief executive officer, said, "We are pleased to report that
the opening quarter of fiscal 2007 reflected continued momentum
in our operations and significant achievements by the company to
enhance long-term stockholder value.

"Operationally, we were gratified to see our top-line momentum
continue, underscoring the ongoing success of sales-driving
strategies that helped push same-store sales 3.4% higher -- near
the high end of our long-term target range.

"Likewise, we witnessed healthy drive-in expansion with a 12%
increase in the number of new restaurants opened versus the same
quarter last year.

"Drawing on our strong balance sheet and solid cash flows, we
also completed a series of transactions during the first quarter
that resulted in repurchases of approximately 20% of our
previously outstanding stock.

"These steps provided immediate and direct benefits for selling
stockholders while enhancing Sonic's ability to deliver stronger
earnings growth over the long term."

                    First Quarter Results

Revenues for the first fiscal quarter rose 9% to US$174.8
million from US$159.8 million in the year-earlier period, with
the year-over-year increase reflecting higher same-store sales,
new unit growth, and higher franchising income related to new
franchise drive-in development as well as the company's
ascending royalty rate.

Net income declined 7% to US$15.3 million versus US$16.4 million
last year.  

Sonic's system-wide same-store sales increased 3.4% during the
first quarter versus 4.7% in the year-earlier period, reflecting
a 4% increase at franchise drive-ins and a 0.6% increase at
partner drive-ins.

Sales at franchise drive-ins have continued to benefit from the
implementation of Sonic's PAYS program (credit card terminals at
each drive-in stall), which has been in place for more than a
year at partner drive-ins.

The roll-out of PAYS to franchise drive-ins, which began in
February 2005 and now extends to over 90% of Sonic's eligible
drive-ins versus 50% in the year-earlier quarter, is expected to
have an ongoing positive impact on franchisee same-store sales
over the remainder of calendar 2007.

During the first quarter, Sonic opened 37 new drive-ins,
including 34 franchise drive-ins, compared with a total of 33 in
the year-earlier period, which included 30 by franchisees.

Sonic anticipates opening a total of 180 to 200 new drive-ins in
fiscal 2007, including approximately 150 to 160 by franchisees.

"Sonic continues to benefit from a multi-layered approach to
overall growth and profitability," Mr. Hudson added.  "Our
system-wide marketing expenditures are on track to exceed US$160
million this year, an increase of more than 10% over fiscal 2006
expenditures, and will maintain our increased focus on national
cable advertising.

"New product news also remains key to our sales results, helping
keep Sonic relevant and compelling to consumers and building
sales in our non-traditional day parts such as mornings,
afternoons and evenings.

"These initiatives, together with the ongoing positive impact of
our PAYS program, continue to represent strong drivers that
produced solid same-store sales growth again this quarter.

"Importantly, these favorable sales trends have extended into
December, with estimated system-wide same- store sales above our
2% to 4% long-term growth target.

"While the second quarter is typically our most volatile, due to
the possibility of inclement weather conditions, we are pleased
to begin the quarter with solid sales momentum."

Mr. Hudson pointed out that Sonic's multi-layered strategies
also have provided direct benefits for the company's franchisees
and partners in the form of higher average unit volumes and
drive-in level profits.

Both of these measures reached record levels in fiscal 2006 and
continued to increase in the first quarter.  "These higher
returns are tangible and compelling incentives that should
continue to fuel our expansion and help sustain our momentum in
fiscal 2007," he said.

Mr. Hudson noted also that the company continued to implement
its new retrofit program in the first quarter, completing the
retrofit of 13 partner drive-ins.

Sonic began testing its new retrofit look in 2003 and, while
certain elements of the new look have been implemented in
approximately 130 partner drive-ins, fewer than one-half of the
drive-ins retrofitted to date have the final and complete
version.

The company plans to roll out the retrofit program to an
additional 135 partner drive-ins this fiscal year.  In January
2007, Sonic also will begin to extend the program to franchise
drive-ins and expects to complete the retrofit of 250 to 300
franchise drive-ins during fiscal 2007.

During the first quarter of fiscal 2007, Sonic repurchased a
total of US$405.9 million of its common stock, including
US$366.1 million repurchased through its tender offer.

                          New Loan

To fund the tender offer, the company negotiated a new
US$586 million credit agreement, including a US$100 million,
five-year revolving credit facility and a US$486 million, seven-
year term loan facility.

On Dec. 20, 2006, Sonic completed an US$800 million securitized
financing in the form of US$600 million of fixed-rate senior
notes and US$200 million of variable-rate notes to refinance the
Bank Loan.

Sonic expects that the fixed-rate notes will have an effective
weighted average fixed interest rate on a GAAP basis of
approximately 5.9%, after giving effect to hedging arrangements
entered into in contemplation of the transaction.

Loan origination costs will add an additional 80 basis points to
interest expense, producing an overall weighted average interest
cost of 6.7% on the fixed-rate notes.

Interest on the variable-rate notes will be payable at per annum
rates equal to LIBOR plus 105 basis points.  Sonic has not drawn
on the variable notes to date and will pay a commitment fee of
0.5% on the unused portion of the variable notes facility.

                        Balance Sheet

At Nov. 30, 2006, the company's balance sheet showed
US$652.456 million in total assets, US$651.828 million in total
liabilities, and US$628,000 in total stockholders' equity.

The company's stockholders' equity stood at US$391.693 million
at Aug. 31, 2006.

The company's balance sheet at Nov. 30, 2006, showed strained
liquidity of US$18.848 million due to low total current assets
of US$54.365 million available to pay total current liabilities
of US$73.213 million.

Full-text copies of the company's first fiscal quarter
financials are available for free at
http://ResearchArchives.com/t/s?18b0

                      About Sonic Corp.

Sonic Corp. (Nasdaq: SONC) -- http://www.sonicdrivein.com/-- is  
America's Drive-In.  It originally started as a hamburger and
root beer stand in 1953 in Shawnee, Okla., called Top Hat Drive-
In, and then changed its name to Sonic in 1959.  The first
drive-in to adopt the Sonic name is still serving customers in
Stillwater, Okla.  Sonic has more than 3,200 drive-ins coast to
coast and in Mexico, where more than a million customers eat
every day.  

                        *    *    *

As reported in the Troubled Company Reporter on Aug. 16, 2006,
Standard & Poor's Ratings Services assigned its 'BB-' corporate
credit rating to Oklahoma City, Oklahoma-based quick-service
restaurant operator Sonic Corp.  S&P said the outlook is stable.


VITRO SA: Vitro Plan Shareholders Approve Merger with Vimexico
--------------------------------------------------------------
Vitro, S.A.B. de C.V.'s subsidiary in the flat glass business
unit, Vitro Plan, S.A. de C.V. approved at a shareholders
meeting held on second call on December 2006 its merger into
Vimexico, S.A. de C.V., another subsidiary of Vitro.

As a result of this merger, Vitro's flat glass business unit
reduced its debt by US$135 million, thus significantly improving
its financial condition.

The merger has become effective, since all the approvals were
granted and the corresponding publications, filings and
recordations were made; however Vitro Plan has been notified
that Vitro's partner Pilkington Group Ltd., who voted against
the merger, has filed a lawsuit against Vitro Plan, challenging
the merger.

Vitro believes that this lawsuit is without merit and will
exercise all available defenses to obtain a favorable
resolution.  This disclosure is made in order to comply with
Mexican law.

Headquartered in Nuevo Leon, Mexico, Vitro, S.A. de C.V. --
http://www.vitro.com/-- (NYSE: VTO; BMV: VITROA), through its
subsidiary companies, is one of the world's leading glass
producers.  Vitro is a major participant in three principal
businesses: flat glass, glass containers and glassware.  Its
subsidiaries serve multiple product markets, including
construction and automotive glass; food and beverage, wine,
liquor, cosmetics and pharmaceutical glass containers; glassware
for commercial, industrial and retail uses.  Vitro also produces
raw materials and equipment and capital goods for industrial
use, which are vertically integrated in the Glass Containers
business unit.

Founded in 1909, Monterrey, Mexico-based Vitro has joint
ventures with major world-class partners and industry leaders
that provide its subsidiaries with access to international
markets, distribution channels and state-of-the-art technology.
Vitro's subsidiaries have facilities and distribution centers in
eight countries, located in North, Central and South America,
and Europe, and export to more than 70 countries worldwide.

                        *    *    *

As reported in the Troubled Company Reporter on Mar. 27, 2006,
Standard & Poor's Ratings Services lowered its long-term local
and foreign currency corporate credit ratings assigned to glass
manufacturer Vitro SA de CV and its glass containers subsidiary
Vitro Envases Norteamerica SA de CV (Vena) to 'B-' from 'B'.

Standard & Poor's also lowered the long-term national scale
corporate credit rating assigned to Vitro to 'mxBB+' from
'mxBBB-' with negative outlook.

Standard & Poor's also lowered the rating assigned to Vitro's
notes due 2013 and Servicios y Operaciones Financieras Vitro SA
de CV notes due 2007 (which are guaranteed by Vitro) to 'CCC'
from 'CCC+'.  Standard & Poor's also lowered the rating assigned
to Vena's notes due 2011 to 'B-' from 'B'.  


WERNER LADDER: To Emerge from Bankruptcy in 2nd Half, Says CEO
--------------------------------------------------------------
Werner Holding Co. (DE) Inc. aka Werner Ladder Company's chief
executive officer, James J. Loughlin, Jr., disclosed to Werner
employees that the company will emerge from Chapter 11 in the
second half of 2007.

"I am pleased to inform you that we are well on our way to
completing the operational restructuring of Werner Co. that has
been underway for the last three years, and we expect to exit
Chapter 11 later this year." Mr. Loughlin tells employees in his
letter.

"When we emerge from Chapter 11 we expect to be a viable company
with a fraction of the debt we have today.  Werner has
successfully lowered its production costs and will begin to reap
the benefits of those reductions as early as the first quarter
of 2007," Mr. Loughlin also wrote.

Mr. Loughlin further tells employees that, "Aside from
dramatically improved operating results, our plans for 2007
include improving our free cash flow before debt service by
US$75 million.  Despite our recent challenges, we ended 2006
with US$25 million of cash in the bank and an undrawn revolving
line of credit, which was an important accomplishment."

Based in Greenville, Pennsylvania, Werner Holding Co. (DE) Inc.
aka Werner Ladder Co. -- http://www.wernerladder.com/--  
manufactures and distributes ladders, climbing equipment and
ladder accessories.  The company and three of its affiliates
filed for chapter 11 protection on June 12, 2006 (Bankr. D. Del.
Case No. 06-10578).  The Debtors are represented by the firm of
Willkie Farr & Gallagher LLP as lead counsel and the firm of
Young, Conaway, Stargatt & Taylor LLP as co-counsel.  Rothschild
Inc. is the Debtors' financial advisor.  The Official Committee
of Unsecured Creditors is represented by the firm of Winston &
Strawn LLP as lead counsel and the firm of Greenberg Traurig LLP
as co- counsel.  Jefferies & Company serves as the Creditor
Committee's financial advisor.  At March 31, 2006, the Debtors
reported total assets of US$201,042,000 and total debts of
US$473,447,000.  The Debtors's exclusive period to file a plan
expires on Jan. 15, 2007.  (Werner Ladder Bankruptcy News, Issue
No. 16; Bankruptcy Creditors' Service Inc.
http://bankrupt.com/newsstand/or 215/945-7000).




===========
P A N A M A
===========


KANSAS CITY SOUTHERN: Sets Annual Shareholders Meeting on May 3
---------------------------------------------------------------
Kansas City Southern's board of directors has set May 3, 2007,
as the date for the company's annual meeting of shareholders to
be held in Kansas City, Missouri.  Shareholders of record as of
March 5, 2007, will be entitled to notice of the meeting and to
vote at the meeting.

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

                        *    *    *

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

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

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




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


INTERPUBLIC GROUP: Withdraws Claim Statement Against Sir Frank
--------------------------------------------------------------
The Interpublic Group of Companies, Inc., has withdrawn its
Statement of Claim against Sir Frank Lowe before the American
Arbitration Association.  In exchange for this withdrawal, Sir
Frank has agreed to withdraw his lawsuit for defamation against
Interpublic in New York State Supreme Court.  The terms of
settlement are confidential.

Interpublic Group of Companies Inc. (NYSE:IPG) --
http://www.interpublic.com/-- is one of the world's leading  
organizations of advertising agencies and marketing services
companies.  The Interpublic Group has over 43,000 employees
working in offices in more than 130 countries around the world,
including Argentina, Brazil, Barbados, Belize, Chile, Colombia,
Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala,
Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Puerto
Rico, Peru, Uruguay and Venezuela.

                        *    *    *


As reported in the Troubled Company Reporter on Dec. 12, 2006,
Standard & Poor's Ratings Services said that its ratings on The
Interpublic Group of Cos. Inc., including the corporate credit
rating of 'B', remain on CreditWatch with negative implications,
where they were placed on March 22, 2006.  The CreditWatch
update followed the news that Wal-Mart Stores Inc. has decided
to place under review its business with one of Interpublic's
advertising agencies, although other Interpublic units may pitch
for the business.  The New York-based global advertising agency
holding company had approximately US$2.2 billion in debt
outstanding at Sept. 30, 2006.




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DOE RUN: Extends Tender Offer on 11.75% Notes Until Feb. 2
----------------------------------------------------------
The Doe Run Resources Corp. disclosed that in connection with
the previously announced tender offer and consent solicitation
for its outstanding 11.75% Senior Notes due 2008, the company
has extended the expiration date for the Offer to Purchase until
Feb. 2, 2007.

On Dec. 27, 2006, tenders and consents have been received with
respect to greater than a majority of the aggregate principal
amount of the outstanding notes.  The company has executed a
supplemental indenture with U.S. Bank National Association, as
Trustee, pursuant to which the proposed amendments to the
Indenture will become operative upon satisfaction of the
conditions set forth in the Offer to Purchase and Consent
Solicitation Statement dated Dec. 5, 2006.  Previously tendered
notes may no longer be withdrawn and consents delivered may no
longer be revoked.

The offer to purchase will expire at 5:00 p.m., New York City
time, on Feb. 2, 2007, unless further extended.  Any notes
tendered prior to the time will be entitled to receive the
tender consideration that is equal to the outstanding principal
amount of notes validly tendered.  Holders who validly tender
notes will also be paid accrued and unpaid interest up to but
not including the date of payment for the notes.

The dealer manager and solicitation agent for the offer to
purchase and the consent solicitation is Wachovia Securities.  
Questions regarding the terms of the tender offer or consent
solicitation may be directed to:

          Wachovia Securities
          Tel: (866) 309-6316 (toll-free)
               (704) 715-8341 (collect)

The depositary is U.S. Bank National Association and the
information agent for the offer is D.F. King & Co., Inc.  
Requests for documentation may be directed to the information
agent at:

          D.F. King  & Co., Inc.
          Tel: (800) 758-5378 (toll-free)
               (212) 269-5550 (collect)

Based in St. Louis, Mo., The Doe Run Company --
http://www.doerun.com/-- is a privately held natural resources
company dedicated to environmentally responsible mineral
production, metals fabrication, recycling and reclamation.  The
company and its subsidiaries deliver products and services
needed to provide power, protection and convenience through
premium products and associated metals including lead, zinc,
copper, gold and silver.  As the operator of one of the world's
only multi-metal facilities and the Americas' largest integrated
lead producer, Doe Run employs more than 5,000 people, with U.S.
operations in Missouri, Washington and Arizona, and Peruvian
operations in Cobriza and La Oroya.

Doe Run Peru S.R.L., an indirect Peruvian subsidiary, operates a
smelter in La Oroya, Peru, one of the largest polymetallic
processing facilities in the world, producing an extensive
product mix of non-ferrous and precious metals, including
silver, copper, zinc, lead and gold.  Doe Run Peru also has a
copper mining and milling operation in Cobriza, Peru in the
region of Huancavelica, which is approximately 200 miles
southeast of La Oroya in Peru.

              Doe Run Peru Going Concern Doubt

As reported in the Troubled Company reporter-Latin America on
Aug. 10, 2006, Doe Run Peru has significant capital requirements
under environmental commitments and guarantees and substantial
contingencies related to taxes and has significant debt service
obligations under the revolving credit facility, each of which,
if not satisfied, could result in a default under Doe Run Peru's
credit agreement and collectively raise substantial doubt about
Doe Run Peru's ability to continue as a going concern.

Doe Run Peru continues to have substantial cash requirements in
the future, including the maturity of the revolving credit
facility on Sept. 22, 2006, and significant capital requirements
under environmental commitments.  In addition, there are
substantial contingencies related to taxes.

The Doe Run Peru Revolving Credit Facility expires on
Sept. 22, 2006, and will require negotiations to extend its
terms.  There can be no assurance that Doe Run Peru will be
successful in extending the existing credit agreement or
negotiating a new agreement, or if it is successful, that the
extended or new credit agreement would be at terms that are
favorable to Doe Run Peru.

Any default under the requirements of the Environmental
Remediation and Management Program could result in a default
under the Doe Run Peru Revolving Credit Facility.  A default
under the requirements of the Doe Run Peru Revolving Credit
Facility results in defaults under the Doe Run Revolving Credit
Facility and the indenture governing the bonds.




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P U E R T O   R I C O
=====================


KMART CORP: Wants Court Decision on Workers' Compensation Claims
----------------------------------------------------------------
Kmart Corp. asks the U.S. Bankruptcy Court for the Northern
District of Illinois to determine that each of additional
workers' compensation claims is entitled to the rights and
treatment described under the company's Plan of Reorganization,
but not to distributions under the Plan.

William J. Barrett, Esq., at Barack Ferrazzano Kirschbaum
Perlman & Nagelberg LLP, in Chicago, Illinois, relates that
pursuant to its Plan, Kmart has honored all prepetition and
postpetition claims for workers' compensation benefits.  
However, several persons asserting workers' compensation claims
have filed additional claims, including:

    Claim No.     Claimant Name                 Claim Amount
    ---------     -------------                 ------------
     39196        Sullivan, Brian                     US$728
     25973        Davis, Lana                        100,000
     15318        Frizzell, Dorothy M.                     0
      6418        Davino, Domenic A.                  20,000
     21346        Dillard, Kathy G.                        -
     31295        Floyd, Barbara G.                   30,000
      7789        Hall, Deborah J.                         -
     11192        Hosino, Georgetta M.                55,981
     45860        Moore, Rosalie                     344,365
     23951        Sarvey, Maxine                      25,000

According to Mr. Barrett, these claimants are entitled to
prosecute their claims in accordance with state law as if the
bankruptcy case had not been filed.  However, they are not
entitled to receive distributions under the Plan.

Any recovery received by a claimant under the Plan would
duplicate the benefits the claimant receives on his or her
workers' compensation claim, Mr. Barrett explains.

                      About Kmart Corp.

Headquartered in Troy, Michigan, Kmart Corporation nka KMART
Holding Corporation -- http://www.bluelight.com/-- operates  
approximately 2,114 stores, primarily under the Big Kmart or
Kmart Supercenter format, in all 50 United States, Puerto Rico,
the U.S. Virgin Islands and Guam.

The Company filed for chapter 11 protection on January 22, 2002
(Bankr. N.D. Ill. Case No. 02-02474).  Kmart emerged from
chapter 11 protection on May 6, 2003.  John Wm. "Jack" Butler,
Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom, LLP,
represented the retailer in its restructuring efforts.

The Company's balance sheet showed US$16,287,000,000 in assets
and US$10,348,000,000 in debts when it sought chapter 11
protection.  

Kmart bought Sears, Roebuck & Co., for US$11 billion to create
the third-largest U.S. retailer, behind Wal-Mart and Target, and
generate US$55 billion in annual revenues.  The waiting period
under the Hart-Scott-Rodino Antitrust Improvements Act expired
on Jan. 27, 2005, without complaint by the Department of
Justice.

(Kmart Bankruptcy News, Issue No. 121; Bankruptcy Creditors'
Service Inc. http://bankrupt.com/newsstand/or 215/945-7000)


NEWCOMM WIRELESS: US Trustee Names 5 Creditors to Serve on Panel
----------------------------------------------------------------
Felicia S. Tumer, the U.S. Trustee for Region 21, appoints these
creditors to serve on the Official Committee of Unsecured
Creditors in Newcomm Wireless Services, Inc.'s Chapter 11 case:

          a. Magnetics International, Inc.
             c/o Robert Menler, President
             500 Bayview Drive, #1030
             Sunny Isles Beach, Florida 33160
             Tel. (305) 825-6527
             Fax (305) 825-6122

          b. TLD de Puerto Rico, Inc.
             c/o Joanna Franyie Romano, Legal Director
             1111 Brickell Avenue, 10th Floor
             Miami, Florida 33131
             Tel. (786) 552-1356
             Fax (786) 552-1443

          c. Caribbean American Property Insurance Co.
             c/o Luis Manrara
             Plaza Scotiabank
             273 Ponce de Leon Avenue, Suite 1300
             San Juan, P.R. 00917-1838
             Tel. (787) 282-5205
             Fax (787) 282-5209

          d. Syniverse Technologies, Inc.
             c/o Mr. Ed Bewley
             8125 Highwoods Palm Way
             Tampa, Florida 33647
             Tel. 813-637-5030
             Fax 813-637-5884

          e. Munoz Metro Office
             c/o Mr. Jose Vazquez, VP Finance & Administration
             P.O. Box 363148
             San Juan, P.R. 00936-3148
             Tel. (787) 729-0050
             Fax (787) 725-6187

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

Based in Guaynabo, Puerto Rico, NewComm Wireless Services Inc.
is a PCS company that provides wireless service to the Puerto
Rico market.  The company is a joint venture between ClearComm,
L.P. and Telefonica Larga Distancia.  The company filed for
chapter 11 protection on Nov. 28, 2006 (Bankr. D. P.R. Case No.
06-04755).  Carmen D. Conde Torres, Esq., at C. Conde & Assoc.
and Peter D. Wolfston, Esq., at Sonnenschein Nath & Rosenthal
LLP represent the Debtor in its restructuring efforts.  On
Dec. 6, 2006, the United States Trustee for Region 21 appointed
a five-member committee of unsecured creditors.  When the Debtor
filed for protection from its  creditors, it reported assets and
liabilities of more than US$100 million.


PILGRIM'S PRIDE: Introducing Chicken Products for Kids
------------------------------------------------------
Pilgrim's Pride Corp. is introducing its EatWellStayHealthy Kids
line of baked and breaded chicken products in nearly 900 Publix
Super Markets in Florida, Georgia, South Carolina, Alabama and
Tennessee next month.

EatWellStayHealthy Kids Breaded Chicken Breast Nuggets and
Breaded Popcorn Chicken are the first to feature the USDA-
regulated word "healthy" on the packaging.  Both products are
made from whole-muscle chicken breast and contain zero trans
fats, with less than half the calories, half the carbohydrates
and 80% less fat per serving than the leading national brand
(see nutrition comparison).  They also are certified by the
American Heart Association with its "heart check-mark" seal of
approval and approved for Child Nutrition Labeling, a voluntary
federal labeling program for the USDA's Child Nutrition
Programs.

EatWellStayHealthy Kids is an extension of the popular
EatWellStayHealthy line of products introduced by Pilgrim's
Pride in 2005.  Both product lines will be available in Publix
stores in February.

The EatWellStayHealthy Kids product line will be available in
more than 3,000 retail locations nationally by the end of
February.  On Jan. 21, 2007, Pilgrim's Pride placed more than 47
million Free-Standing Insert coupons, redeemable for any
Pilgrim's Pride chicken product, in newspapers nationwide.

Headquartered in Pittsburgh, Texas, Pilgrim's Pride Corp.
(NYSE: PPC) -- http://www.pilgrimspride.com/-- produces,
distributes and markets poultry processed products through
retailers, foodservice distributors and restaurants in the
United States, Mexico and in Puerto Rico.  Pilgrim's Pride
employs approximately 40,000 people and has major operations in
Texas, Alabama, Arkansas, Georgia, Kentucky, Louisiana, North
Carolina, Pennsylvania, Tennessee, Virginia, West Virginia,
Mexico and Puerto Rico, with other facilities in Arizona,
Florida, Iowa, Mississippi and Utah.

                        *    *    *

As reported in the Troubled Company Reporter on Jan. 19, 2007,
Moody's Investors Service downgraded the senior unsecured credit
rating for Pilgrim's Pride Corp. to B1 from Ba3, its senior
subordinated notes to B2 from B1, and its corporate family
ratings to Ba3 from Ba2.

Moody's also assigned a B1 rating to Pilgrim's Pride's planned
new US$250 million senior unsecured notes and a B2 to its new
US$200 million senior subordinated notes.


PILGRIM'S PRIDE: Protein Acquisition Merges with Gold Kist
----------------------------------------------------------
Pilgrim's Pride Corp.s wholly owned subsidiary, Protein
Acquisition Corporation, filed with the Delaware Secretary of
State a Certificate of Ownership and Merger.

Protein was merged with and into Gold Kist Inc., which is the
surviving corporation in the merger, thereby becoming a wholly
owned subsidiary of Pilgrim's Pride.

As reported in the Troubled Company Reporter on Jan. 12, 2007,
Pilgrim's Pride completed its acquisition of Gold Kist,
following its completed tender offer.

The Merger was consummated in accordance with the terms of the
Agreement and Plan of Merger by and among the company, Gold Kist
and Protein.  Pursuant to the Merger Agreement, each share then
outstanding was canceled and converted automatically into the
right to receive US$21 per share in cash without interest.

Immediately following the filing of the Certificate of Ownership
and Merger, Gold Kist filed a certificate of amendment of
amended and restated certificate of incorporation, which changed
the name of Gold Kist to Pilgrim's Pride Corporation of Georgia,
Inc.

                      About Gold Kist

Based in Atlanta, Georgia, Gold Kist Incorporated (NASDAQ: GKIS)
-- http://www.goldkist.com/-- operates a fully integrated  
chicken production, processing and marketing business.  Gold
Kist's production operations include nine divisions located in
Alabama, Florida, Georgia, North Carolina and South Carolina.

                    About Pilgrim's Pride

Headquartered in Pittsburgh, Texas, Pilgrim's Pride Corp.
(NYSE: PPC) -- http://www.pilgrimspride.com/-- produces,  
distributes and markets poultry processed products through
retailers, foodservice distributors and restaurants in the
United States, Mexico and in Puerto Rico.  Pilgrim's Pride
employs approximately 40,000 people and has major operations in
Texas, Alabama, Arkansas, Georgia, Kentucky, Louisiana, North
Carolina, Pennsylvania, Tennessee, Virginia, West Virginia,
Mexico and Puerto Rico, with other facilities in Arizona,
Florida, Iowa, Mississippi and Utah.

                        *    *    *

Moody's Investors Service's held its Ba2 Corporate Family Rating
for Pilgrim's Pride Corp.  In addition, Moody's revised or held
its probability-of-default ratings and assigned loss-given-
default ratings on the company's note issues, including an LGD6
rating on its US$100 million 9.25% Sr. Sub. Global Notes Due
Nov. 15, 2013, suggesting noteholders will experience a 95% loss
in the event of a default.

As reported in the Troubled Company Reporter on Dec. 6, 2006,
Standard & Poor's Ratings Services reported that its 'BB'
corporate credit rating and other ratings on the second-largest
U.S. poultry processor, Pilgrim's Pride Corp., remain on
CreditWatch with negative implications, where they were
originally placed Aug. 21, 2006.


R&G FINANCIAL: Appoints Rafael Saldana as R-G Crown President
-------------------------------------------------------------
R&G Financial Corp. has appointed Rafael Saldana as President of
R-G Crown Bank, the company's wholly owned Florida-based federal
savings bank subsidiary.  The action taken by the Board of
Directors of R-G Crown Bank follows the appointment of Mr.
Rolando Rodriguez as President and Chief Executive Officer of
RGF, which became effective Jan. 1, 2007.  Mr. Rodriguez will
continue to serve as Chief Executive Officer of R-G Crown Bank.  
R-G Crown Bank requested and received the non-objection of the
Office of Thrift Supervision for Mr. Saldana's appointment.

In commenting on the appointment, Mr. Rodriguez indicated,
"Given Rafael's abilities, experience and leadership qualities,
I am very confident that Rafael will perform very well in his
increased responsibilities as President."

Mr. Saldana has over 25 years experience in the financial
services industry.  From 2004 until March 2006, Mr. Saldana
served as Managing Director of R-G Premier Bank's International
Division in Casselberry, Florida.  Following a six-month break,
he was hired as Executive Vice President and Business Director
of R-G Crown Bank in September 2006.  From 2003 to 2004, Mr.
Saldana served as Executive Vice President and Commercial
Director at Banco Santander in San Juan, Puerto Rico.  Mr.
Saldana served as Business Director, Hispanic Markets, at
Capital One Financial Corporation in Tampa, Florida, from 2001
to 2003.  Mr. Saldana previously served as Vice President and
General Manager at Fingerhut Co. / Federated Department Stores
in Minnetonka, Minnesota, from 1999 to 2001; Senior Vice
President at Fleet Financial Group in Boston, Massachusetts,
from 1998 to 1999; Senior Vice President and Group Executive for
Wachovia Corporation in Winston-Salem, North Carolina, from 1996
to 1998 and Senior Vice President and Commercial Director at
Banco Santander in San Juan, Puerto Rico, from 1990 to 1996.  
Mr. Saldana received his undergraduate degree in Economics from
the University of Puerto Rico and his MBA specializing in
Accounting, Finance, Operations and Industrial Relations from
the Kellogg School of Management, Northwestern University.

Headquartered in Hato Rey, Puerto Rico, R&G Financial Corp.
(NYSE: RGF) -- http://www.rgonline.com/-- is a diversified
financial holding company with operations in Puerto Rico and the
United States, providing banking, mortgage banking, investments,
consumer finance and insurance through its wholly owned
subsidiaries, R-G Premier Bank, R-G Crown Bank, R&G Mortgage
Corporation, Puerto Rico's second largest mortgage banker, R-G
Investments Corporation, the Company's Puerto Rico broker-
dealer, and R-G Insurance Corporation, its Puerto Rico insurance
agency.  At June 30, 2006, the Company operated 37 bank branches
in Puerto Rico, 35 bank branches in the Orlando, Tampa/St.
Petersburg and Jacksonville, Florida and Augusta, Georgia
markets, and 49 mortgage offices in Puerto Rico, including 37
facilities located within R-G Premier Bank's banking branches.

                        *    *    *

Fitch Ratings lowered on Oct. 30, 2006, these ratings of R&G
Financial Corp. and its subsidiaries:

  R&G Financial Corp.

      -- Long-term IDR to 'BB' from 'BBB-';
      -- Preferred stock to 'B' from 'BB'; and
      -- Individual to 'D' from 'C'.

   R-G Premier Bank

      -- Long-term IDR to 'BB' from 'BBB-';
      -- Short-term issuer to 'B' from 'F3';
      -- Long-term deposit obligations to 'BB+' from 'BBB';
      -- Short-term deposit obligations to 'B' from 'F3'; and
      -- Individual to 'C/D' from 'C'.

  R-G Crown Bank

      -- Long-term IDR to 'BB' from 'BBB-';
      -- Short-term issuer to 'B' from 'F3';
      -- Long-term deposit obligations to 'BB+ from 'BBB'; and
      -- Individual to 'C/D' from 'C'

  R&G Mortgage

      -- Long-term IDR to 'BB' from 'BBB-'.

Fitch said the rating outlook is negative.


SEARS HOLDINGS: C. Monaghan Resigns as Chief Financial Officer
--------------------------------------------------------------
Sears Holdings Corp. disclosed that Craig T. Monaghan, executive
vice president and chief financial officer, will leave the
company at the end of the month to return to Florida where his
family still resides. William C. Crowley, chief administrative
officer, executive vice president and a director, will assume
the additional responsibility of interim chief financial officer
until a replacement can be named.  Mr. Crowley had served as
chief financial officer of the company prior to the arrival of
Mr. Monaghan in September 2006.

The company will commence a search to fill the chief financial
officer position immediately.

Hoffman Estates, Illinois-based Sears Holdings Corp.
(NASDAQ: SHLD) -- http://www.searsholdings.com/-- is the
nation's third largest broadline retailer, with approximately
US$55 billion in annual revenues, and with approximately 3,800
full-line and specialty retail stores in the United States,
Canada and Puerto Rico.  Sears Holdings is a home appliance
retailer as well as a retailer of tools, lawn and garden, home
electronics, and automotive repair and maintenance.  Key
proprietary brands include Kenmore, Craftsman and DieHard, and a
broad apparel offering, including well-known labels as Lands'
End, Jaclyn Smith, and Joe Boxer, as well as the Apostrophe and
Covington brands.

                        *    *    *

As reported in the Troubled Company Reporter on June 23, 2006,
Standard & Poor's Ratings Services revised its outlook on Sears
Holdings Corp. to stable from negative.  All ratings, including
the 'BB+' corporate credit rating, and the 'B-1' short-term
rating for Sears Roebuck Acceptance Corp., are affirmed.

As reported in the Troubled Company Reporter on Jun 22, 2006,
Fitch affirms its ratings of Sears Holdings Corp. including its
Issuer Default Rating (IDR) at 'BB'; Senior notes at 'BB'; and
Secured bank facility at 'BBB-'.




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


* URUGUAY: State Firm Cancels Wind Park Construction Bidding
------------------------------------------------------------
Uruguay's state power firm Usinas y Transmisiones Electricas has
called off the bidding for the construction of a 10-megawatt
wind park after failing to receive offers, El Pais reports.

Usinas y Transmisiones' vice president Pedro de Aurrecoechea
told Business News Americas that bidding conditions were
limiting and the equipment down to the last screw has to be
Spanish.

According to BNamericas, Spain granted Uruguay US$10.3 million
for the wind farm, requiring that Spanish firms must supply and
develop the project.

Mr. de Aurrecoechea told BNamericas that Usinas y Transmisiones
will renegotiate the deal to make bidding conditions more lax.  
Mr. de Aurrecoechea did not say when the new bidding would be
launched.

Uruguay may launch the bidding to other nations while ensuring
that the majority of equipment and supplies are Spanish,
BNamericas states.

                        *    *    *

On Sept 11, 2006, Fitch rated Uruguay's US$400 million issue of
5% inflation-indexed bonds payable in U.S. dollars and maturing
Sept. 14, 2018, at 'B+'.




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


ELECTRICIDAD DE CARACAS: Conindustria Against Nationalization
-------------------------------------------------------------
Conindustria, a Venezuelan industrialists' group, has protested
the proposed nationalization of Electricidad de Caracas,
Business News Americas reports.

Conindustria said in a statement, "We reject the forced
nationalization of existing companies (Electricidad de Caracas
and Cantv), especially those that perform efficient services."

BNamericas relates that Conindustria was also concerned about
the nationalization of the Orinoco oil projects and other power
firms.

As previously reported, the Venezuelan government disclosed
plans to nationalize all power firms, the four Orinoco oil joint
ventures and Cantv.

"We hope that all these issues, given their importance and
significance for the entire country, will be open to the widest
possible discussion, which we are willing to help out with,"
Conindustria said in a statement.

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.

                        *    *    *

As reported in the Troubled Company Reporter-Latin American on
Jan. 12, 2007, Fitch Ratings downgraded the senior unsecured
foreign and local currency debt ratings and Issuer Default
Ratings of C.A. La Electricidad de Caracas to 'B+'.  Fitch said
the rating outlook is negative.  The rating action followed
Venezuelan President Hugo Chavez's announcement of nationalizing
the country's power sector.


PETROLEOS DE VENEZUELA: To Hold Majority Stake at Orinoco
---------------------------------------------------------
State-oil firm Petroloes de Venezuela SA will hold majority
stakes at the Orinoco oil projects, while foreign firms will
become minority holders.

"Now there is no negotiation whatsoever.  Nationalization will
be implemented under a law -the draft of which has been
completed already- under which a schedule has been outlined for
strategic partnerships to conform to the law in force,"
Venezuelan Minister of Energy and Petroleum Rafael Ramirez was
quoted as saying by Marianna Parraga at El Universal.

In April last year, 32 oil-operating contracts were also
migrated into joint ventures, giving the state oil firm at least
60% stake in each venture.

"We stressed they (strategic partnership) needed to abide by the
Organic Law on Hydrocarbons, particularly following the reports
we submitted to the National Assembly rejecting a number of
violations to the laws that left partnership agreements on the
fringe of the current legislation," the energy minister added.

Negotiations for the foreign company's minority stakes would be
done separately, Mr. Ramirez told El Universal.

The four projects at the Orinoco oil belt are: Sincor, Ameriven,
Petrozuata and Cerro Negro.

The energy minister explained that the government aims to
achieve synergy and prevent problems when implementing important
oil decisions, like production cuts, El Universal relates.

Additionally, the minister said in the same report that
commercialization of crude from the oil belt will be fully
controlled by the state firm.

               About Petroleos de Venezuela

Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad.  The company has a commercial office in China.

                        *    *    *

Standard & Poor's said on July 17 that it may lower the
company's B+ foreign-currency debt rating in part because of the
absence of timely financial and operating information.    


* VENEZUELA: Caracas Stock Exchange Hit by Nationalization Woes
---------------------------------------------------------------
El Universal reports that the Caracas Stock Exchange fell almost
11% on Tuesday over small investors' concern on the Venezuelan
government's nationalization plans.

"There is prevailing nervousness in the market (.) particularly
among small investors," a broker told El Universal.  

President Hugo Chavez recently disclosed his plans to
nationalize telecom company CANTV and power supplier La
Electricidad de Caracas.

                        *    *    *

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: Chavez Says Gov't Won't Pay Market Value for Cantv
---------------------------------------------------------------
Venezuelan President Hugo Chavez said during his Jan. 21 speech
on the weekly "Alo Presidente" television program that the
government won't pay CA Nacional Telefonos de Venezuela's
shareholders the market value of their holdings, Bloomberg News
reports.  

According to the country's ruler, the government would come up
with a price for the telecom company and once it's been decided,
pensions owed to about 4,000 former workers would be deducted
from the sale price, Bloomberg relates.

President Chavez underscored that his administration would
nationalize everything that was privatized during the 1990s.  A
third of Cantv was sold to private investors in 1991, under the
regime of former President Carlos Andres Perez, Bloomberg says.

"Some people are saying we have to pay the international price
for Cantv. No," the Venezuelan leader emphasized, according to
Bloomberg.  "The state gave that company away.  We're going to
take it over first, and pay later."

Bloomberg says Cantv's shares in the Caracas Stock Exchange
Index fell 19% since Jan. 8, when the nationalization was
declared.

The stock fell 0.6% to 7,950 bolivars in Caracas on Jan. 19,
giving the company a market capitalization of US$1.44 billion.  
Cantv's American Depository Receipts have fallen 20% since
Jan. 8, closing at US$13.49 on Jan. 19.

                        *    *    *

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: President Proposes Banco del Sur Creation
------------------------------------------------------
Venezuelan President Hugo Chavez talks about the establishment
of a financial institution, to be called Banco del Sur, that
would take the place of the World Bank, during the inauguration
of Ecuadorian President-elect Rafael Correa, El Universal
reports.

The Venezuelan ruler said his country is ready to deposit 10% of
its international reserves in Banco del Sur.

"We are prepared to move at least 10 percent of our reserves.
Let the other countries do the same and let us organize a bank
that will begin as a modest institution, but in five-six years
we will need neither the World Bank nor begging around the
world," President Chavez was quoted by news agency ABN.

"Enough is enough; we are going to take decisions with a
strategic liberating reach. We are going to transfer reserves
and create a South American bank," Venezuela's ruler emphasized,
according to ABN.

                        *    *    *

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: Trade Group Wants RCTV License Renewed
---------------------------------------------------
The Federation of Trade and Industry Chambers -- Fedecamaras
-- asks the Venezuelan government to revise its decision not to
renew the broadcasting license of Radio Caracas Television, El
Universal reports.

The group, according to the same paper, would ask for the
reversal on grounds of freedom-related rights and principles.

"Our institution advocates the principles and values of the
private company, the rights laid down in the National
Constitution and the fundamental human rights of every citizen
or institution, and we do think that these rights and principles
should be observed accordingly," Fedecaramas chairperson Jose
Luis Betancourt was quoted by El Universal as saying.

                        *    *    *

As reported in the Troubled Company Reporter on Nov. 20, 2006,
Fitch Ratings affirmed Venezuela's long-term foreign and local
currency Issuer Default Ratings at 'BB-'.  At the same time, the
agency also affirmed the short-term foreign currency IDR at 'B'
and the Country Ceiling at 'BB-'.  Fitch said the outlook on the
ratings remains stable.


* Moody's Reports LGD Results Summary for Homebuilding Sector
-------------------------------------------------------------
Application of Moody's new loss-given-default or LGD methodology
for the homebuilding and building products sectors has led to
rating changes in line with expectations, Moody's Investors
Service says in a new report.  During the September 2006 rollout
of the methodology, Moody's applied its loss-given-default
methodology to over 50 US-based speculative-grade
homebuilding/building products companies encompassing more than
150 rated debt instruments.

The purpose of this report is two-fold:

   1) Summarize and detail broad sector rating changes resulting
      from LGD implementation, and

   2) Highlight analytical considerations which are unique and
      key to the construction of the homebuilding and building
      products sectors LGD liability waterfalls.

While separate LGD press releases were issued for the
homebuilding and building products sectors in September, this
report aggregates information for both of these sectors.

The overall impact of these LGD assessments on homebuilding and
building products ratings, with a comparison to the overall,
Corporate Finance Group-wide LGD results for North America, have
been as follows (overall LGD results are given in parentheses):

   * Upgrades to 40% (46%) and downgrades to 10% (8%) of the
     rated debt instruments, with 50% (46%) of ratings
     remaining unchanged;

   * On average, an increase in ratings of +0.49 (+0.56)
     notches;

   * Two-notch downgrades totaled 6 (14), and there were no
     three-notch downgrades;

   * Zero (16%) Ba1 rated instruments crossed over to Baa3; and

   * 2% (9%) Ba rated instruments crossed over to Baa -- 1 of
     60 in the homebuilding and building products sectors.

"The results in the homebuilding and building products sectors
varied minimally from the overall LGD results," said Joseph
Snider, Senior Credit Officer.  Analytical considerations and
highlights in the homebuilding and building products sectors
included:

   * For homebuilding companies, explicit contractual joint
     venture debt payment guaranties were modeled in.  Limited
     maintenance and "bad boy" payment guaranties (fraud or
     intentional misrepresentation, voluntary filing of
     bankruptcy, etc.) were excluded from the model.

  * For homebuilding companies, non-recourse financial services
    debt was excluded from the model.

  * For homebuilding/building products companies, 73% of the
    second lien debt was downgraded versus 32% of the overall
    LGD results.  The primary reason for this disparity was
    that most of the companies that had second lien debt were
    land developers with bank-only debt structures.  
    Additionally, prior to the implementation of the LGD
    methodology, the second lien debt was typically rated at
    the CFR level.

  * The mean Corporate Family Rating for both the homebuilding
    and building products sectors and for all of CFG was B1;

  * 9% of the companies in the homebuilding and building
    products sectors had a family-level LGD rate other than
    50%, compared to 14% for all of CFG.

Moody's began applying the LGD methodology to all new issuers on
Sept. 6 and began transitioning the ratings of existing
companies and their debt instruments to the methodology on Sept.
18.  This Moody's report is on the individual assessments
comprising the broad homebuilding and building products sectors
published in the period Sept. 18 to Sept. 26.


* Large Companies with Insolvent Balance Sheets
-----------------------------------------------  

                                Total  
                                Shareholders  Total     
                                Equity        Assets    
Company                 Ticker  (US$MM)       (US$MM)     
-------                 ------  ------------  -------  
Kuala                    ARTE3     (33.57)      11.86
Kuala-Pref               ARTE4     (33.57)      11.86
Bombril                  BOBR3    (781.53)     473.67
Bombril-Pref             BOBR4    (781.53)     473.67
CIC                      CIC    (1,883.69)  22,312.12
Telefonica Holding       CITI   (1,010.00)     861.00
Telefonica Holding       CITI5  (1,010.00)     861.00
SOC Comercial PL         COME     (743.79)     459.53
CIMOB Partic SA          GAFP3     (44.38)     121.74
CIMOB Part-Pref          GAFP4     (44.38)     121.74
DOC Imbituba             IMBI3     (19.84)     192.80
DOC Imbitub-Pref         IMBI4     (19.84)     192.80
IMPSAT Fiber Networks    IMPTQ     (17.16)     535.01
Kepler Weber             KEPL3     (22.20)     478.81
Paranapanema SA          PMAM3     (53.36)   3,268.96
Paranapanema-PREF        PMAM4     (53.36)   3,268.96
Telebras-CM RCPT         RCTB30    (59.79)     228.35
Telebras-PF RCPT         RCTB40    (59.79)     228.35


                         ***********


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

Troubled Company Reporter - Latin America is a daily newsletter
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Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
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Mae Hechanova, Francois Albarracin, and Christian Toledo,
Editors.

Copyright 2076.  All rights reserved.  ISSN 1529-2746.

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