TCRLA_Public/070124.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Wednesday, January 24, 2007, Vol. 8, Issue 17

                          Headlines

A R G E N T I N A

AGILENT TECH: Secures IPTV Partnership with Alcatel-Lucent
ARVINMERITOR INC: Moody's Lowers Corporate Family Rating to Ba3
GALA SH: Reorganization Proceeding Concluded
GREIF INC.: Moody's Lifts Corp. Family Rating to Ba1 from Ba2
NOVI-CONT SACI: Claims Verification Deadline Is on March 7

PETROBRAS ENERGIA: Constructing Gas Pipeline with PDVSA
PETROBRAS ENERGIA: Wins Exploration Concession for Hickman Block
TELEFONICA DE ARGENTINA: Antitrust Agency Permits Share Transfer

B A H A M A S

ISLE OF CAPRI: Discloses Construction Plans for Biloxi Casino

B E R M U D A

ACORDIA BROKERAGE: Final General Meeting Is Set for Feb. 19
ACORDIA MANAGEMENT: Final Shareholders Meeting Is on Feb. 19
HOOKE LTD: Shareholders to Gather for Final Meeting on March 22
INTERNATIONAL MUSIC: Final General Meeting Is on March 22
REFCO INC: Court Denies Plan Confirmation Order Reconsideration

REFCO INC: RCM Trustee Asks for Procedures on Resolving Claims
SEA CONTAINERS: Principal Financial Discloses 9.5% Equity Stake
SEA CONTAINERS: Committee Taps Morris Nichols as Delaware Atty.
SHIP FINANCE: Acquires Jack-Up Drilling Rig for US$210 Million
SHIP FINANCE: Names Svein Aaser to Board of Directors

B R A Z I L

ALCATEL-LUCENT: Alenia Space Unit Inks EUR103-Mln Satellite Deal
ALCATEL-LUCENT: To Transfer Asia-Pacific Headquarter to Shanghai
ALCATEL-LUCENT: Partners with Agilent for IPTV Ecosystem
BANCO INDUSTRIAL: Seeks US$40MM Funding from IFC for Bond Issue
BANCO ITAU: Credit Card Division Eyes BRL190 Bil. Sales Volume

BANCO NACIONAL: Authorizes Issuing US$200MM Capital for Andean
BANCO NACIONAL: OKs Seed Capital Prog. to Boost Small Businesses
BARRY CALLEBAUT: European Sales Rise 5.8% in First Quarter
COMPANHIA SIDERURGICA: Ups Loan by 20% to Finance Corus Bid
EMI GROUP: To Drop Suit Against Baidu; Launches Free Streaming

EMI GROUP: Networking Web Sites to Give Songwriters More Value
GP INVESTMENTS: Prices US$150 Million 10% Perpetual Notes at Par
JABIL CIRCUIT: Declares US$0.07 Per Share Quarterly Dividend
METSO OYJ: Paper Unit Inks EUR100-Million Supply Deal in Japan
METSO OYJ: Nomination Committee Proposes Seven Members to Board

FIDELITY NATIONAL: Fitch Rates US$3-Bil. Credit Facility at BB+
NOVELL INC: Wal-Mart Supports Alliance with Microsoft
PETROLEO BRASILEIRO: Gets Tenders of US$392MM for Exchange Offer
PETROLEO BRASILEIRO: In Talks with Iran on Offshore Drilling
PETROLEO BRASILEIRO: PIFCo Prices Exchange Offer of Notes

SANMINA-SCI: S&P Retains Negative CreditWatch on BB- Ratings
TRANSAX INTERNATIONAL: Plans to Sell Brazil Unit to Gestao

C A Y M A N   I S L A N D S

ACACIA CDO: Shareholders to Gather for Jan. 29 Final Meeting
CREEP INVESTORS: Final Shareholders Meeting Is on Jan. 29
CREP INVESTORS: Sets Final Shareholders Meeting on Jan. 29
EASTSIDE HOLDING: Final General Meeting Is Set for Jan. 29
FINE METALS: Shareholders to Convene for Jan. 29 Final Meeting

JOFI SAPPORO: Shareholders to Gather for Jan. 29 Final Meeting
JUBILEE LANE: Final Shareholders Meeting Is Set for Jan. 29
KAIA OFFSHORE: Invites Shareholders for Final Meeting on Jan. 29
POST LONG/SHORT: Invites Shareholders for Jan. 29 Final Meeting
POST LONG/SHORT (II): Final General Meeting Is on Jan. 29

RECON ARBITRAGE: Final Shareholders Meeting Is on Jan. 29
SHINJUKU INVESTORS: Calls Shareholders for Jan. 29 Final Meeting
SRG CAPITAL: Shareholders to Gather for Jan. 29 Final Meeting
TOP SPIN: Shareholders to Convene for Jan. 29 Final Meeting
UCOM LATIN: Liquidator to Present Wind Up Accounts on Jan. 29

UNITED CAPITAL: Final Shareholders Meeting Is Set for Jan. 29

C H I L E

REVLON INC: Discloses Result of US$100-Million Rights Offering

C O L O M B I A

ECOPETROL: Posts US$3.31 Billion in Oil Exports Last Year
PETROLEOS DE VENEZUELA: Paying Colombian Natives for Pipeline

* COLOMBIA: Completing Sale of 27.5% Stake in Hidroelectrica
* COLOMBIA: IFC Fund Helps Banco Davivienda's Buy of Granbanco

C O S T A   R I C A

COVANTA ENERGY: Moody's Rates US$1.3-Bil. Credit Facility at Ba2
COVANTA ENERGY: S&P Raises Corp. Credit Rating to BB- from B+
COVANTA HOLDING: Moody's Puts B1 Rating on US$325MM Debentures
COVANTA HOLDING: S&P Puts BB- Rating on US$325-Mil. Bonds

* COSTA RICA: Recope Launches Bidding for Refinery Upgrade

C U B A

* CUBA: Decreasing Food Purchases in US by US$300 Million

D O M I N I C A N   R E P U B L I C

CARIBE MEDIA: S&P Affirms B Rating on Parent's Merger with CBD

E C U A D O R

PETROECUADOR: Protests Result to Production Cut to 172,000 BPD

* ECUADOR: Foreign Minister Denies Mercosur Membership

E L   S A L V A D O R

MILLICOM INT: Inks Pact with China Mobile to Sell Paktel Stake

G U A T E M A L A

BRITISH AIRWAYS: Cabin Crew Workers to Stage a Three-Day Strike

* GUATEMALA: President May Okay Hydrocarbons Exploration Tender

J A M A I C A

GOODYEAR TIRE: Relocates Sales Office After Fire

M E X I C O

AMR CORP: Board OKs 2007 Annual Incentive Plan for American Air
AMR CORPORATION: Earns US$17 Million in Fourth Quarter of 2006
COREL CORP: Earns US$9.4 Million in Fourth Quarter Ended Nov. 30
DELTA AIR: Says Disclosure Statement Has Adequate Information
DELTA AIR: Wants Court Nod on Solicitation & Tabulation Process

ENESCO GROUP: Wants Auction for Assets Scheduled on February 7
FORD MOTOR: Mark Fields Giving Up Use of Company Plane
GENERAL MOTORS: Picks AutoSoft to Complete IDMS Strategy
GLOBAL POWER: Court OKs Saul Ewing as Equity Panel's Co-Counsel
LEAR CORP: Reschedules Earnings Conference Call Tomorrow

SWIFT & CO: Engages JPMorgan as Financial Advisor
VOLKSWAGEN AG: Peter Hartz Attains Preliminary Agreement on Case
VOLKSWAGEN AG: Skoda Unit Sells 549,667 Total Vehicles

N I C A R A G U A

* NICARAGUA: Posts Fuel Price Cuts

P E R U

* PERU: International Consortium Launches LNG Project
* Garrigues Opens New Office in Warsaw

P U E R T O   R I C O

PILGRIM'S PRIDE: Prices US$650-Million Notes
HORNBECK OFFSHORE: Shareholders File Class Action Lawsuit
HORNBECK OFFSHORE: Says Class Action Lawsuits Are Without Merit
WARNER CHILCOTT: Partners with Foamix to Develop Foam Product

U R U G U A Y

ABN AMRO: Uruguayan Unit Posts UYU342-Million Profit Last Year
WORLDSPAN LP: Renews Partnership with A&I Travel for Five Years

* URUGUAY: Antel's Mobile Unit Installing 100 New Base Stations
* URUGUAY: To Ink Bilateral Trade & Investment Accord with U.S.

V E N E Z U E L A

PETROLEOS DE VENEZUELA: Building Gas Pipeline with Petrobras
PETROLEOS VENEZUELA: Seeking to Acquire Stake in Indian Plant

* VENEZUELA: Nationalizing Cantv Before Paying Compensation


                          - - - - -


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


AGILENT TECH: Secures IPTV Partnership with Alcatel-Lucent
----------------------------------------------------------
Agilent Technologies Inc. disclosed that Alcatel-Lucent has
chosen Agilent as a formal test and measurement partner for its
IPTV ecosystem.  The partnership will enable collaboration to
ensure that new IP-based video deployments meet end-to-end
service-quality expectations.

Agilent test solutions provide a holistic approach to measuring
and monitoring video service quality from R&D and lab-based
performance validation, through to service assurance and network
troubleshooting. Realizing the critical role that T&M solutions
play in the effective delivery of IP-based video services,
Alcatel-Lucent has proactively established formal relationships
with best-in-class vendors in the IPTV T&M segment.

Service providers and network equipment manufacturers face the
challenge of converging new IP-based video services, such as
IPTV and video on demand, with existing voice and data services
to residential customers over a single access point. Ensuring
network integrity, quality of service and subscriber quality of
experience is critical to the success of video service
deployments.

Agilent offers a portfolio of solutions for testing video
service quality, including research and development through to
network installation and ongoing monitoring.  Agilent equipment
provides stress testing and service validation prior to and
during the installation process, which significantly reduces
post-deployment performance issues and helps prepare new service
offerings for production networks. Agilent's monitoring tools
provide real-time video-quality analysis and troubleshooting for
live video service deployments, which is critical given the
complexity and ever-changing conditions within next-generation
triple play networks.  These test solutions help network
equipment manufacturers and service providers reduce time-to-
market, lower development costs and minimize risks for new IP-
based service offerings.

"Agilent equips network equipment manufacturers and service
providers with the tools they need to measure video service
quality at the most granular level," said Rod Unverrich,
business manager of Agilent's Data Network Operation.  "Our
video test solutions address all stages of the test cycle to
improve both the time-to-market and performance of new video
service deployments."

                   About Alcatel-Lucent

Headquartered in Paris, France, Alcatel-Lucent
-- http://www.alcatel-lucent.com/-- provides solutions that
enable service providers, enterprises and governments worldwide,
to deliver voice, data and video communication services to end
users.  Through its operations in fixed, mobile and converged
broadband networking, Internet protocol (IP) technologies,
applications, and services, Alcatel-Lucent offers the end-to-end
solutions that enable communications services for people at
home, at work and on the move.  The company has operations in
Brazil and Indonesia.

On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed
their merger transaction, and began operations as a
communication solutions provider under the name Alcatel-Lucent
on Dec. 1, 2006.

                       About Agilent

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

                        *    *    *

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


ARVINMERITOR INC: 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, ARM'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.  ARM'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
ARM'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.

Ratings lowered:

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

    -- 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%

Ratings affirmed:

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 North 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 ARM, 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 ARM
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 US$980 million
revolving credit facility with ample cushions under its
financial covenants.

ArvinMeritor, Inc., headquartered in Troy, MI, is a global
supplier of a broad range of integrated systems, modules and
components serving light vehicles, commercial trucks, trailers,
and specialty original equipment manufacturers as well as
certain aftermarkets.  Revenues in fiscal 2006 were
approximately US$9.2 billion.

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.


GALA SH: Reorganization Proceeding Concluded
--------------------------------------------
Gala SH's reorganization proceeding has ended.  Data published
by Infobae on its Web site indicated that the process was
concluded after the civil and commercial court in Tartalga
approved the debt agreement signed between the company and its
creditors.


GREIF INC.: Moody's Lifts Corp. Family Rating to Ba1 from Ba2
-------------------------------------------------------------
Moody's Investors Service upgraded the ratings of Greif, Inc., a
leading global provider of industrial packaging products and
service, and assigned a first time rating to the company's new
senior unsecured notes.  The rating outlook is stable.  The
rating on the new senior unsecured notes remains subject to
review of the final financing documentation.

Moody's upgraded these ratings:

   -- Corporate Family Rating, to Ba1 from Ba2; and
   -- Probability-of-default rating, to Ba1 from Ba2.

Moody's assigned this rating:

   -- US$300 million senior unsecured notes due 2017 at Ba2.

In addition, the company speculative-grade liquidity rating of
SGL-1 has been affirmed.

The rating upgrade reflects the significant improvement in the
company's financial performance and credit profile.  The ratings
also reflect the company's leading market position in global
industrial packaging, its geographic, customer and end market
diversity as well as the meaningful financial flexibility
provided by its holdings of a large amount of unencumbered
timber assets.  Meanwhile, the ratings continue to be
constrained by the cyclicality in the company's industrial
shipping container and paper packaging businesses, declining
demand for steel and fibre drum products, its modest profit
margins due to the mostly commodity nature of its products, and
considerable exposure to volatile raw material prices.

The rating outlook is stable.  Factors that could favorably
impact the ratings include:

   -- sustained improvement in the credit profile, through
       margin  expansion and cash flow generation;

   -- demonstrated commitment to maintaining Moody's adjusted
      debt to EBITDA below 2.0x; and

   -- further successful reduction of costs through strategic
      sourcing and operational excellence.

Factors that could negatively impact the ratings include
deteriorating revenues due to substitution or market share shift
away from the company, declining profit margins, or large debt-
financed acquisitions.

Moody's also affirmed Greif's speculative-grade liquidity rating
of SGL-1, which indicates very good liquidity and reflects
Moody's expectation that the company's operating cash flow,
together with its cash balance and availability under its
committed revolver and A/R securitization facility, should be
more than sufficient to cover its capital spending and other
operational needs over the next 12 months.

The Ba2 rating on the senior unsecured notes reflects an LGD 5
loss given default assessment that reflects its contractual
subordination to all of Greif's senior secured creditors.  The
notes will rank pari passu in right of payment to Greif's
existing and future senior debt and will be senior to all
existing and future senior subordinated debt.  The proceeds from
the senior unsecured notes will be used to fund the purchase of
Greif's 8.875% senior subordinated notes due 2012. Moody's will
withdraw the ratings on the senior subordinated notes upon the
successful issuance of the senior unsecured notes.

Headquartered in Delaware, Ohio, Greif, Incorporated, (NYSE:
GEF, GEF.B) -- http://www.greif.com/-- is a world leader in
industrial packaging products and services. The Company provides
extensive expertise in steel, plastic, fibre, corrugated and
multi-wall containers for a wide range of industries. Greif also
produces containerboard and manages timber properties in the
United States.  For fiscal year 2006, the company generated
approximately US$2.6 billion in net sales and US$326 million in
EBITDA. Thecompany has operations in Australia, Argentina,
Brazil, Belgium,China, Malaysia, among others.


NOVI-CONT SACI: Claims Verification Deadline Is on March 7
----------------------------------------------------------
Marcela Adriana Mazzoni, the court-appointed trustee for
Novi-cont SACI's bankruptcy proceeding, will verify creditors'
proofs of claim until March 7, 2007.

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

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

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

The debtor can be reached at:

          Novi-Cont SACI
          Montevideo 451
          Buenos Aires, Argentina

The trustee can be reached at:

          Ernesto Garcia
          Sarmiento 1587
          Buenos Aires, Argentina


PETROBRAS ENERGIA: Constructing Gas Pipeline with PDVSA
-------------------------------------------------------
Petrobras Energia said in a statement that it has agreed with
Petroleos de Venezuela SA aka PDVSA, its Venezuelan counterpart,
to construct the regional natural gas pipeline connecting
Venezuela and Argentina.

The pipeline will have capacity of 50 million cubic meters per
day.

Business News Americas relates that Petrobras Energia's
President Jose Gabrielli and PDVSA's President Rafael Ramirez
met to discuss several projects.

Mr. Gabrielli told Agencia Estado that the pipeline's economic
and environmental feasibility studies should conclude by
December 2007.

BNamericas underscores the pipeline would be supplied from
Venezuelan gas fields, including Mariscal Sucre that PDVSA and
Petrobras Energia will develop together.

According to the report, Mariscal Sucre's output is estimated at
34 million cubic meters per day, 50% of which would be sold by
PDVSA in the Venezuelan domestic market.  The other half of the
production would go to Brazil through the regional pipeline.

Published reports in Brazil say that the pipeline would
initially deliver gas to Brazil's northeastern region, ending in
Suape port in Pernambuco.  The pipeline would then be extended
to deliver gas in Argentina.

Agencia Estado reports that the first stage of the pipeline
would be completed after 2013.

BNamericas notes that the original pipeline proposal involved
connecting Venezuela to Argentina, crossing the center-west
region of Brazil.  Investments were estimated at US$20 billion.
In the revised project, the pipeline will go through Brazil's
northeastern region.

Bolivia, Argentina, and Uruguay have been invited to participate
in the regional gas pipeline project, BNamericas states.

              About Petroleos de Venezuela

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

                About Petrobras Energia

Petrobras Energia S.A. produces and transports gas and other
crude products in Argentina.  The company is the Argentine
subsidiary of Petroleo Brasileiro SA, Brazil's state-owned oil
firm.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Jan. 4, 2007, Fitch Argentina Calificadora de Riesgo affirmed
these ratings on Petrobras Energia SA:

   -- international currency: B+
   -- local currency: BB-
   -- unsecured senior debt: B+
   -- Obligaciones Negociables: AA rating
   -- short-term debt: A1
   -- ordinary shares were included in category 1.


PETROBRAS ENERGIA: Wins Exploration Concession for Hickman Block
----------------------------------------------------------------
Tecpetrol said in a filing with the Buenos Aires stock exchange
that its consortium with Petrobras Energia has won the
exploration concession for Hickman block in northeast Salta,
Argentina.

Business News Americas relates that Petrobras Energia and
Tecpetrol will have equal shares in the 6,555 square kilometer
block.

According to BNamericas, Tecpetrol will act as operator of the
block.

Petrobras Energia and Tecpetrol plan a US$18.7-million
investment in exploratory works over the next four years,
BNamericas states.

Petrobras Energia S.A. produces and transports gas and other
crude products in Argentina.  The company is the Argentine
subsidiary of Petroleo Brasileiro SA, Brazil's state-owned oil
firm.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Jan. 4, 2007, Fitch Argentina Calificadora de Riesgo affirmed
these ratings on Petrobras Energia SA:

   -- international currency: B+
   -- local currency: BB-
   -- unsecured senior debt: B+
   -- Obligaciones Negociables: AA rating
   -- short-term debt: A1
   -- ordinary shares were included in category 1.


TELEFONICA DE ARGENTINA: Antitrust Agency Permits Share Transfer
----------------------------------------------------------------
Telefonica de Argentina SA disclosed that the Comision Nacional
de Defensa de la Competencia or National Antitrust Committee
exempted the sale of shares between the company and Alto Palermo
SA.

In connection with this, Telefonica de Argentina transferred its
808,354 shares from E-Commerce Latina SA and 11 shares from
Altocity.com SA to Alto Palermo.

Headquartered in Buenos Aires, Argentina, Telefonica de
Argentina SA -- http://www.telefonica.com.ar/-- provides
telecommunication services, which include telephony business
both in Spain and Latin America, mobile communications
businesses, directories and guides businesses, Internet, data
and corporate services, audiovisual production and broadcasting,
broadband and Business-to-Business e-commerce activities.

                        *    *    *

As reported in the Troubled Company Reporter on Jan. 22, 2007,
Moody's Latin America changed the rating outlook to positive
from stable for Telefonica de Argentina's foreign currency
rating of B2 and for the Aa3.ar (national scale rating).  The
rating action was taken in conjunction with Moody's outlook
change to positive from stable for Argentina's B2 foreign
currency ceiling for bonds and notes on Jan. 16, 2007.
Telefonica de Argentina's foreign currency rating continues to
be constrained by Argentina's B2 ceiling.




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


ISLE OF CAPRI: Discloses Construction Plans for Biloxi Casino
-------------------------------------------------------------
Isle of Capri Casinos, Inc., disclosed final construction plans
for the Isle of Capri Biloxi Casino Resort.

The US$180-million construction project will be largely funded
by insurance proceeds associated with Hurricane Katrina.  The
project includes a land-based casino with approximately 2,100
slot machines, 50 table games, a new poker room, rebuilding the
company's signature steakhouse, Farraddays', as well as an
expanded tropical-themed buffet, plus one other restaurant yet
to be named.

Approximately 45,000 square feet of convention space that is
currently serving as gaming space will be restored to its
original use. In addition, the casino entryway will be renovated
to allow guests easier access.

When complete, this project will return the Isle of Capri Biloxi
Casino Resort to the planned pre-Katrina levels.  The Biloxi
property also includes 731 hotel rooms, a European Spa, infinity
pool and waterfall that opened to the public last summer.

"The Mississippi Coast continues to work toward a complete
restoration and Isle of Capri is actively participating in the
continued evolution of the region.  We have worked closely with
our insurance carriers, as well as the City of Biloxi and the
Mississippi Gaming Commission, throughout the past year to
return our property to pre-Katrina levels. I am proud of the
work we have done thus far and I am quite sure that our guests
and the community will enjoy everything the Isle of Capri offers
when this project is completed," Tim Hinkley, president and
chief operating officer, said.

Based in Biloxi, Miss., Isle of Capri Casinos, Inc. (Nasdaq:
ISLE) -- http://www.islecorp.com/-- a developer and owner of
gaming and entertainment facilities, operates 16 casinos in 14
locations.  The Company owns and operates riverboat and dockside
casinos in Biloxi, Vicksburg, Lula and Natchez, Miss.; Bossier
City and Lake Charles (two riverboats), La.; Bettendorf,
Davenport and Marquette, Iowa; and Kansas City and Boonville,
Mo.  The Company also owns a 57% interest in and operates land-
based casinos in Black Hawk (two casinos) and Cripple Creek,
Colorado.  Isle of Capri's international gaming interests
include a casino that it operates in Freeport, Grand Bahama, and
a 2/3 ownership interest in casinos in Dudley, Walsal and
Wolverhampton, England.  The company also owns and operates
Pompano Park Harness Racing Track in Pompano Beach, Fla.

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 26, 2005,
Standard & Poor's Ratings Services affirmed its ratings on Isle
of Capri Casinos Inc., including its 'BB-' corporate credit
rating.  At the same time, all ratings were removed from
CreditWatch with negative implications where they were placed on
Sept. 1, 2005.  S&P said the outlook is negative.

As reported in the Troubled Company Reporter-Latin America on
Oct. 4, 2006, in connection with Moody's Investors Service's
implementation of its new Probability-of-Default and Loss-Given-
Default rating methodology for the Gaming, Lodging & Leisure
sector, the rating agency confirmed Isle of Capri Casinos,
Inc.'s Ba3 Corporate Family Rating.




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


ACORDIA BROKERAGE: Final General Meeting Is Set for Feb. 19
-----------------------------------------------------------
Acordia Brokerage Services Ltd.'s final general meeting will be
at 9:00 a.m. on Feb. 19, 2007, or as soon as possible, at the
liquidator's place of business.

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

The liquidator can be reached at:

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


ACORDIA MANAGEMENT: Final Shareholders Meeting Is on Feb. 19
------------------------------------------------------------
Acordia Management Services Ltd.'s final general meeting will be
at 10:00 a.m. on Feb. 19, 2007, or as soon as possible, at the
liquidator's place of business.

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


The liquidator can be reached at:
             Jennifer Y. Fraser
             Canon's Court, 22 Victoria Street
             Hamilton, Bermuda


HOOKE LTD: Shareholders to Gather for Final Meeting on March 22
---------------------------------------------------------------
Hooke Ltd.'s final general meeting will be at 10:00 a.m. on
March 22, 2007, or as soon as possible, at the offices of Mello
Jones & Martin.

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

The liquidator can be reached at:

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


INTERNATIONAL MUSIC: Final General Meeting Is on March 22
---------------------------------------------------------
International Music Tour 1 Ltd.'s final general meeting will be
at 10:00 a.m. on March 22, 2007, or as soon as possible, at the
offices of Mello Jones & Martin.

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

The liquidator can be reached at:

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


REFCO INC: Court Denies Plan Confirmation Order Reconsideration
---------------------------------------------------------------
The Hon. Robert D. Drain of the U.S. Bankruptcy Court for the
Southern District of New York denies, as moot, Allied World
Assurance Company (U.S.), Inc.'s request to reconsider the
Dec. 15 order confirming the Refco Inc. and its debtor-
affiliates' Modified Chapter 11 Plan.

Judge Drain finds that notwithstanding entry of the Confirmation
order or occurrence of the Plan Effective Date, the Court will
retain exclusive jurisdiction over all matters arising out of,
and related to, the Debtors' Chapter 11 cases; the Modified
Plan; and the global settlement agreement among Refco Capital
Markets, Ltd., and its unsecured creditors and securities
customers, to the fullest extent permitted by law, including the
Plan provisions.

Moreover, Judge Drain points out, the Plan Confirmation Order
states that to the extent of any inconsistency between the Plan
provisions and the Confirmation Order, the terms and conditions
contained in the Confirmation Order will govern.

Consequently, the Plan does not confer on the Court exclusive
jurisdiction beyond that permitted to the fullest extent by
applicable law.

Specifically, Judge Drain states, if AWA's rights to alternative
dispute resolution under its Excess Directors and Officers
Insurance and Company Reimbursement Policy would deprive the
Court of jurisdiction, neither the Plan nor the Confirmation
Order confer that jurisdiction on the Court.

                      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, 2006, the Court confirmed 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.  That Plan became effective on
Dec. 26, 2006.


REFCO INC: RCM Trustee Asks for Procedures on Resolving Claims
--------------------------------------------------------------
Marc S. Kirschner, the Chapter 11 Trustee for Refco Capital
Markets, Ltd. estate, asked the Hon. Lewis A. Kaplan of the U.S.
Southern District of New York for a scheduling order governing
procedures for resolving certain claims brought against RCM and
other debtors, and the claim objections that have been filed or
soon will be filed by the RCM Trustee.

The RCM Trustee objects to the Claims on the grounds that they
are, among others:

   (i) based on theories of recovery that fail as a matter of
       law;

  (ii) inconsistent with RCM's and other Debtors' books and
       records;

(iii) fail to articulate any facts that could serve as the
       basis for any claim against RCM;

  (iv) duplicative of certain claims previously resolved in
       settlement agreements; and

  (iv) not supported by any documentary evidence of an RCM
       account as of the Petition Date.

The Claims are:

Claimant                       Claim No.     Claim Amount
--------                       ---------     ------------
ABBA Funds, L.P.                 11709         US$577,952
                                 11710            577,952

Geshoa Fund Class A              11442         17,379,011

Geshoa Structured Finance Ltd.   14177         10,134,755
                                 11443          9,560,708

Global Macro Fund Limited        12080         40,384,865

Living Water Fund, L.P.          10495          1,453,670

OFI Palmares                     12054         12,943,388

PCMG Trading Partners V LP        9315          1,889,281

PlusFunds Group, Inc.            11289          7,000,000

Refco SPhinX Managed Futures
Index Fund, Ltd.                  9482             11,926

Reifler, Barry C.                14124          5,879,839

SPhinX Ltd., et al.              11375       Unliquidated

SPhinX Managed Futures Fund
SPC, et al.                      11378            Various
                                 11384            Various
                                 11387          4,312,945

SPhinX Managed Futures
Index Fund, LP                   13256         39,005,537

                      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, 2006, the Court confirmed 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.  That Plan became effective on
Dec. 26, 2006.


SEA CONTAINERS: Principal Financial Discloses 9.5% Equity Stake
---------------------------------------------------------------
In a regulatory filing with the U.S. Securities and Exchange
Commission dated Jan. 11, 2007, Principal Financial Group,
Inc., disclosed that it beneficially owns 2,480,300 shares of
Sea Containers Ltd.'s common stock, which represents 9.5% of the
total outstanding shares issued.

Principal Financial's subsidiary, Post Advisory Group, LLC, also
holds beneficial ownership of the 2,480,300 shares of SCL stock.

Post Advisory is the beneficial owner of the shares on behalf of
the numerous clients who have the right to receive and the power
to direct the receipt of dividends from, or the proceeds of the
sale of, the Common Stock.  No client has the right to receive
or the power to direct the receipt of dividends from, or the
proceeds from the sale of, more than 5% of SCL's Common Stock.

Principal Financial and Post Advisory have shared voting and
selling power over the shares.

                    About Sea Containers

Headquartered in Hamilton, Bermuda, Sea Containers Ltd. (NYSE:
SCRA, SCRB) -- 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 October 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)


SEA CONTAINERS: Committee Taps Morris Nichols as Delaware Atty.
---------------------------------------------------------------
The Official Committee of Unsecured Creditors in Sea Containers,
Ltd. and its debtor-affiliates bankruptcy case ask authority
from the Honorable Kevin J. Carey of the U.S. Bankruptcy Court
for the District of Delaware to retain Morris, Nichols, Arsht &
Tunnell LLP as its Delaware counsel, nunc pro tunc to
Oct. 26, 2006.

The Creditors Committee selected Morris Nichols because of the
firm's extensive experience, knowledge and resources in the
fields of, inter alia, debtors' and creditors' rights and
business reorganizations under Chapter 11 of the Bankruptcy
Code, Andrew B. Cohen, managing director of Dune Capital LLC,
relates.

Mr. Cohen adds that Morris Nichols is well qualified to
represent the Creditors Committee because of its expertise,
experience and knowledge practicing before the U.S. Bankruptcy
Court for the District of Delaware, as well as its proximity to
the Court, and its ability to respond quickly to emergency
hearings and other emergency matters in the Court.

Specifically, Morris Nichols will:

   (a) advise the Creditors Committee with respect to its
       rights, duties and powers in the Debtors' Chapter 11
       cases;

   (b) assist and advise the Creditors Committee in its
       consultations with the Debtors relative to the
       administration of their cases;

   (c) assist the Creditors Committee in analyzing the claims of
       the Debtors' creditors in negotiating with them;

   (d) assist with the Creditors Committee's investigation of
       the acts, conduct, assets liabilities and financial
       condition of the Debtors and of the operation of their
       business;

   (e) assist the Creditors Committee in its analysis of, and
       negotiations with, the Debtors or their creditors
       concerning matters related to, among other things, the
       terms of a plan of reorganization for the Debtors;

   (f) assist and advise the Creditors Committee with respect to
       its communications with the general creditor body
       regarding significant matters in the Debtors' bankruptcy
       cases;

   (g) assist and counsel the Creditors Committee in respect to
       its organization, the conduct of its business and
       meetings, the dissemination of information to its
       constituency, and other matters as are reasonably deemed
       necessary to facilitate the administrative activities of
       the Committee;

   (h) attend the meetings of the Creditors Committee;

   (i) represent the Creditors Committee at all hearings and
       other proceedings;

   (j) review and analyze all applications, orders, statements
       of operations and schedules filed with the Court and
       advise the Creditors Committee as to their propriety;

   (k) assist the Creditors Committee in preparing pleadings and
       applications as may be necessary in furtherance of the
       Creditors Committee's interests and objectives; and

   (1) perform other legal services as may be required and are
       deemed to be in the interests of the Creditors Committee
       in accordance with the Committee's powers and duties as
       set forth in the Bankruptcy Code.

Morris Nichols will be paid on an hourly basis, plus
reimbursement of actual and necessary expenses incurred:

      Designation                       Hourly Rate
      -----------                       -----------
      Partners                         US$425 - US$625
      Associates                       US$220 - US$400
      Paraprofessionals                    US$175
      Case Clerks                          US$100

William H. Sudell, Jr., Esq., a partner at Morris Nichols,
assures the Court that his firm is a "disinterested person" as
defined in Section 101(14) of the Bankruptcy Code.  Morris
Nichols does not hold or represent any interest adverse to the
Debtors' estates or their creditors, Mr. Sudell adds.

The counsel could be reached at:

          William H. Sudell, Jr., Esq.
          Morris, Nichols, Arsht & Tunnell LLP
          Chase Manhattan Centre
          1201 North Market Street
          P.O. Box 1347
          Wilmington, Delaware 19899-1347

Headquartered in Hamilton, Bermuda, Sea Containers Ltd. (NYSE:
SCRA, SCRB) -- 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 October 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)


SHIP FINANCE: Acquires Jack-Up Drilling Rig for US$210 Million
--------------------------------------------------------------
Ship Finance International Ltd. has entered into an agreement to
acquire a new building jack-up drilling rig currently under
construction, the West Prospero Seadrill 4, from a subsidiary of
Seadrill Ltd.

The purchase price for the drilling rig is agreed to US$210
million and expected delivery from Keppel Fels in Singapore will
be in July 2007.  The Company is currently in discussions with
banks for the financing of the rig, and based on discussions to
date, the company expects to enter into a term loan facility in
an amount of around US$170 million.

The rig will be chartered back to the seller for 15 years on a
bareboat basis, guaranteed by Seadrill. Seadrill is among the
world's leading offshore drilling contractors, with a market
capitalization of around US$6 billion.  The aggregate charter
payments for the first three years will be around US$120
million, the following four years will be around US$77 million,
and the last eight years will be around US$109 million.

Seadrill has been awarded a letter of intent by ExxonMobil
Exploration and Production Malaysia Inc. for the West Prospero,
and the intended contract has a duration of 400 days, with an
estimated value of around US$82 million. Start-up of operations
is planned in the third quarter of 2007, following delivery from
the construction yard.

In addition to the fixed charter rate, Ship Finance will receive
a profit split element of 4% above certain threshold levels,
starting Jan. 1, 2009.  During the charter period the charterer
will have several options to buy back the rig, and the first
purchase option will be after three years at US$142 million and
the last purchase option after 15 years at US$60 million.

                     About Ship Finance

Headquartered in Bermuda, Ship Finance International Limited --
http://www.shipfinance.org/-- through its subsidiaries engages
in the ownership and operation of oil tankers, including
oil/bulk/ore (OBO) carriers.  The Company operates through
subsidiaries and partnerships located in Bermuda, Cyprus, Isle
of Man, Liberia, Norway and Singapore.  It is also involved in
the charter, purchase and sale of vessels.

                        *    *    *

In a TCR-Europe report on Dec. 7, 2006, Standard & Poor's
Ratings Services raised its long-term corporate credit rating on
Bermuda-based Ship Finance International Ltd., a ship-owning
company tied to Frontline Ltd., to 'BB' from 'BB-'.  The outlook
is stable.

At the same time, S&P raised its senior unsecured debt rating on
Ship Finance's US$580-million bonds to 'B+' from 'B'.

As reported in the TCR-Europe on Nov. 16, 2006, Moody's
Investors Service affirmed Ship Finance International Ltd.'s
ratings, including the Ba3 Corporate Family Rating, the Ba2
Senior Secured Bank Credit Facilities and the B1 Senior
Unsecured Notes rating.  Moody's said the ratings outlook
remains stable.


SHIP FINANCE: Names Svein Aaser to Board of Directors
-----------------------------------------------------
Ship Finance International Ltd. has appointed Svein Aaser to the
Board of Directors.

Mr. Aaser is the former President and Chief Executive Officer of
DnB NOR ASA, the largest financial institution in Norway, and a
leading maritime financier worldwide. During his carreer in DnB
NOR, the market capitalization of the company increased from
around US$2.2 billion to around US$19.1 billion.

Prior to his position in DnB NOR, Mr. Aaser had a long carreer
as a top executive in several copmpanies, including Nycomed
Amersham plc., Storebrand Skade AS and Stabburet AS. Mr Aaser
serves on several boards, including Pan Fish ASA and Laerdal
Medical AS.

"We are very pleased to have recruited Mr. Aaser to become a
non-executive board member," Tor Olav Troim, Chairman in Ship
Finance, said.  "His broad international background in large
multinational companies, substantial banking experience and his
outstanding track record in the capital market secures our
Company a very competent and professional board member.
Furthermore, the announced investment in the oil exploration
sector validate the Board of Director's strategy to diversify
the asset base and grow the long-term charter business. Over the
last 12 months, the Company has announced investments of US$950
million, of which more than US$760 million outside the tanker
segment.  The company believes there will be particularly good
growth opportunities within oil exploration and related
segments, as the company sees a high activity level and
significant cash flows, and there is a positive market outlook."

                    About Ship Finance

Headquartered in Bermuda, Ship Finance International Limited --
http://www.shipfinance.org/-- through its subsidiaries engages
in the ownership and operation of oil tankers, including
oil/bulk/ore (OBO) carriers.  The Company operates through
subsidiaries and partnerships located in Bermuda, Cyprus, Isle
of Man, Liberia, Norway and Singapore.  It is also involved in
the charter, purchase and sale of vessels.

                        *    *    *

In a TCR-Europe report on Dec. 7, 2006, Standard & Poor's
Ratings Services raised its long-term corporate credit rating on
Bermuda-based Ship Finance International Ltd., a ship-owning
company tied to Frontline Ltd., to 'BB' from 'BB-'.  The outlook
is stable.

At the same time, S&P raised its senior unsecured debt rating on
Ship Finance's US$580-million bonds to 'B+' from 'B'.

As reported in the TCR-Europe on Nov. 16, 2006, Moody's
Investors Service affirmed Ship Finance International Ltd.'s
ratings, including the Ba3 Corporate Family Rating, the Ba2
Senior Secured Bank Credit Facilities and the B1 Senior
Unsecured Notes rating.  Moody's said the ratings outlook
remains stable.




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


ALCATEL-LUCENT: Alenia Space Unit Inks EUR103-Mln Satellite Deal
----------------------------------------------------------------
Alcatel Alenia Space, a unit of Alcatel-Lucent, has signed a
EUR103 million contract with the Italian Ministry of Defense to
provide the telecommunication satellite SICRAL-1B.

The satellite, dedicated to the Italian Armed Forces, will
ensure strategic and tactical communications on the Italian and
foreign territories as well as mobile communications between
terrestrial, naval and air platforms.  It will also provide UHF
and SHF band satellite capacities to NATO forces, further to a
Memorandum of Understanding, which was signed in 2004 between
the Ministries of Defense of Italy, France, the United Kingdom,
and the Atlantic Alliance.

This contract, signed end of 2006, is financed by the Italian
Ministry of Economic Development, in the scope of the industry
competitiveness and high technology initiatives currently
undertaken by the Ministry.

As prime contractor, Alcatel Alenia Space will manufacture and
deliver the satellite as well as several ground segment's
subsystems, amongst which the Telecommunications Control Centre
in Vigna di Valle (Italy).

This announcement follows previous contracts signed with the
Italian Ministry of Defense, including one worth EUR72 million
signed in 2003, for non-recurring costs related to SICRAL-1B
satellite and ground segment.  A further contract for the
completion of SICRAL-1B ground segment and satellite launch is
forecast in the near future.

SICRAL-1B structure manufacturing and satellite integration is
taking place in Alcatel Alenia Space's facility in Turin
(Italy), whilst the environmental tests will be carried out in
its facility in Cannes (France).  The payload, which is
manufacturing in Rome (Italy), is composed of 3 UHF band, 5 SHF
band and 1 EHF/Ka band transmitters.

"The SICRAL system is particularly strategic for the Italian
Defense Administration as it has already demonstrated its
efficiency in past military operations," Carlo Alberto Penazzi,
CEO of Alcatel Alenia Space in Italy, said.  "SICRAL-1B
satellite, which represents a further technological development
for the Italian industry, consolidates Alcatel Alenia Space's
leading role in SICRAL system development and in the delivery of
end-to-end military telecommunications systems."

SICRAL-1B, which is set for launch end of 2007, will supplement
SICRAL-1 in operation since 2001.  It will increase the
availability and the complete reliability of the SICRAL system
and will satisfy the operational requirements that the Italian
Armed Forces are facing, mainly coming from "foreign areas."

SICRAL-1B will be operational until 2019 and will be followed by
SICRAL-2, which should be operational from 2011 until 2026.

The SICRAL system has been chosen by NATO, together with the
French program Syracuse -- also under the prime contractorship
of Alcatel Alenia Space -- and its British counterpart, to
develop a network of protected telecommunications available to
allied countries (the NATO SatCom program post-2000_NSP2K).  In
this position, the SICRAL system, which already guarantees
efficient operation with the other systems, will be enhanced,
thanks to the development of the SICRAL-1B satellite that will
extend the potential of the system within NATO programs until
2019, contributing to increase the total capacity available to
the Italian Armed Forces and its allies.

                    About Alcatel-Lucent

Headquartered in Paris, France, Alcatel-Lucent
-- http://www.alcatel-lucent.com/-- provides solutions that
enable service providers, enterprises and governments worldwide,
to deliver voice, data and video communication services to end
users.  Through its operations in fixed, mobile and converged
broadband networking, Internet protocol (IP) technologies,
applications, and services, Alcatel-Lucent offers the end-to-end
solutions that enable communications services for people at
home, at work and on the move.  The company has operations in
Brazil and Indonesia.

On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed
their merger transaction, and began operations as a
communication solutions provider under the name Alcatel-Lucent
on Dec. 1, 2006.

                        *    *    *

As reported on Dec. 14, 2006, following the completion of
Alcatel S.A.'s merger with Lucent Technologies Inc., at which
time Alcatel was renamed Alcatel-Lucent, Fitch Ratings
downgraded and removed Alcatel from Rating Watch Negative:

   -- Issuer Default Rating to BB from BBB-; and
   -- Senior unsecured debt to BB from BBB-.

Alcatel's F3 short-term rating has also been withdrawn.

The Rating Outlook for Alcatel-Lucent is Stable.

Fitch has also withdrawn the following Lucent ratings due to the
lack of clarity regarding Alcatel's support and, therefore,
expected recovery of these securities in a distressed scenario:

   -- Issuer Default Rating BB-;
   -- Senior unsecured debt BB-;
   -- Convertible subordinated debt B; and
   -- Convertible trust preferred securities B.

Moody's Investors Service downgraded to Ba2 from Ba1 the
Corporate Family Rating of Alcatel S.A., which has completed its
merger with Lucent Technologies Inc. and was renamed to Alcatel-
Lucent.  The ratings for senior debt of Alcatel were equally
lowered to Ba2 from Ba1 and its Not-Prime rating for short-term
debt was affirmed.

At the same time, Moody's raised the ratings for senior debt of
Lucent to Ba3 from B1 reflecting both the standalone credit
profile of Lucent and, given the strategic importance of Lucent
to round-off the group's product range and regional presence,
expected financial support from Alcatel-Lucent, although this is
not formally committed at this time.  The ratings for the other
legacy debt of Lucent were raised to B2 from B3 for subordinated
debt and trust preferreds, and to P(B3) from P(Caa1) for
preferred stock issuable under its shelf registration.

Moody's has withdrawn Lucent's Corporate Family Rating of B1,
assuming that management of the two entities will be fully
integrated over the next several months and all of Lucent's non-
US activities merged with their Alcatel counterparts.  This
should result in a rapid convergence of the credit risks of the
affected companies.  The outlook for all these ratings is
stable.  This rating action concludes the rating reviews
initiated on April 3, 2006.

Standard & Poor's, on Dec. 6, 2006, said that following news
that the merger between French telecoms equipment supplier
Alcatel and U.S. peer Lucent Technologies Inc. has received
final approval from the U.S. Committee on Foreign Investments,
it has lowered its long-term corporate credit and senior
unsecured debt ratings on Alcatel -- now named Alcatel-Lucent --
to 'BB-' from 'BB', in line with its preliminary indication in
its Nov. 7, 2006, research update.

The 'B' short-term corporate credit rating on Alcatel-Lucent was
affirmed.  S&P said the outlook is positive.


ALCATEL-LUCENT: To Transfer Asia-Pacific Headquarter to Shanghai
----------------------------------------------------------------
Alcatel-Lucent has chosen the Pudong area of Shanghai for its
new Asia-Pacific headquarters, China Tech News reports.

According to the report, Alcatel-Lucent Asia Pacific President
Luo Ruizhe said that they have full confidence in the China
market and will soon set up a new research and development
center in Shanghai.

China Tech also cites Mr. Ruizhe as saying said that they are
optimistic about Shanghai's excellent industry environment, and
that's why they have decided to incorporate their headquarters
and move it there.

Alcatel originally set up its Asia-Pacific headquarters in
January 2000 in Singapore, the report recounts.

                    About Alcatel-Lucent

Headquartered in Paris, France, Alcatel-Lucent
-- http://www.alcatel-lucent.com/-- provides solutions that
enable service providers, enterprises and governments worldwide,
to deliver voice, data and video communication services to end
users.  Through its operations in fixed, mobile and converged
broadband networking, Internet protocol (IP) technologies,
applications, and services, Alcatel-Lucent offers the end-to-end
solutions that enable communications services for people at
home, at work and on the move.  The company has operations in
Brazil and Indonesia.

On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed
their merger transaction, and began operations as a
communication solutions provider under the name Alcatel-Lucent
on Dec. 1, 2006.

                        *    *    *

As reported on Dec. 14, 2006, following the completion of
Alcatel S.A.'s merger with Lucent Technologies Inc., at which
time Alcatel was renamed Alcatel-Lucent, Fitch Ratings
downgraded and removed Alcatel from Rating Watch Negative:

   -- Issuer Default Rating to BB from BBB-; and
   -- Senior unsecured debt to BB from BBB-.

Alcatel's F3 short-term rating has also been withdrawn.

The Rating Outlook for Alcatel-Lucent is Stable.

Fitch has also withdrawn the following Lucent ratings due to the
lack of clarity regarding Alcatel's support and, therefore,
expected recovery of these securities in a distressed scenario:

   -- Issuer Default Rating BB-;
   -- Senior unsecured debt BB-;
   -- Convertible subordinated debt B; and
   -- Convertible trust preferred securities B.

Moody's Investors Service downgraded to Ba2 from Ba1 the
Corporate Family Rating of Alcatel S.A., which has completed its
merger with Lucent Technologies Inc. and was renamed to Alcatel-
Lucent.  The ratings for senior debt of Alcatel were equally
lowered to Ba2 from Ba1 and its Not-Prime rating for short-term
debt was affirmed.

At the same time, Moody's raised the ratings for senior debt of
Lucent to Ba3 from B1 reflecting both the standalone credit
profile of Lucent and, given the strategic importance of Lucent
to round-off the group's product range and regional presence,
expected financial support from Alcatel-Lucent, although this is
not formally committed at this time.  The ratings for the other
legacy debt of Lucent were raised to B2 from B3 for subordinated
debt and trust preferreds, and to P(B3) from P(Caa1) for
preferred stock issuable under its shelf registration.

Moody's has withdrawn Lucent's Corporate Family Rating of B1,
assuming that management of the two entities will be fully
integrated over the next several months and all of Lucent's non-
US activities merged with their Alcatel counterparts.  This
should result in a rapid convergence of the credit risks of the
affected companies.  The outlook for all these ratings is
stable.  This rating action concludes the rating reviews
initiated on April 3, 2006.

Standard & Poor's, on Dec. 6, 2006, said that following news
that the merger between French telecoms equipment supplier
Alcatel and U.S. peer Lucent Technologies Inc. has received
final approval from the U.S. Committee on Foreign Investments,
it has lowered its long-term corporate credit and senior
unsecured debt ratings on Alcatel -- now named Alcatel-Lucent --
to 'BB-' from 'BB', in line with its preliminary indication in
its Nov. 7, 2006, research update.

The 'B' short-term corporate credit rating on Alcatel-Lucent was
affirmed.  S&P said the outlook is positive.


ALCATEL-LUCENT: Partners with Agilent for IPTV Ecosystem
--------------------------------------------------------
Agilent Technologies Inc. disclosed that Alcatel-Lucent has
chosen Agilent as a formal test and measurement partner for its
IPTV ecosystem.  The partnership will enable collaboration to
ensure that new IP-based video deployments meet end-to-end
service-quality expectations.

Agilent test solutions provide a holistic approach to measuring
and monitoring video service quality from R&D and lab-based
performance validation, through to service assurance and network
troubleshooting. Realizing the critical role that T&M solutions
play in the effective delivery of IP-based video services,
Alcatel-Lucent has proactively established formal relationships
with best-in-class vendors in the IPTV T&M segment.

Service providers and network equipment manufacturers face the
challenge of converging new IP-based video services, such as
IPTV and video on demand, with existing voice and data services
to residential customers over a single access point. Ensuring
network integrity, quality of service and subscriber quality of
experience is critical to the success of video service
deployments.

Agilent offers a portfolio of solutions for testing video
service quality, including research and development through to
network installation and ongoing monitoring.  Agilent equipment
provides stress testing and service validation prior to and
during the installation process, which significantly reduces
post-deployment performance issues and helps prepare new service
offerings for production networks. Agilent's monitoring tools
provide real-time video-quality analysis and troubleshooting for
live video service deployments, which is critical given the
complexity and ever-changing conditions within next-generation
triple play networks.  These test solutions help network
equipment manufacturers and service providers reduce time-to-
market, lower development costs and minimize risks for new IP-
based service offerings.

"Agilent equips network equipment manufacturers and service
providers with the tools they need to measure video service
quality at the most granular level," said Rod Unverrich,
business manager of Agilent's Data Network Operation.  "Our
video test solutions address all stages of the test cycle to
improve both the time-to-market and performance of new video
service deployments."

                       About Agilent

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

                   About Alcatel-Lucent

Headquartered in Paris, France, Alcatel-Lucent
-- http://www.alcatel-lucent.com/-- provides solutions that
enable service providers, enterprises and governments worldwide,
to deliver voice, data and video communication services to end
users.  Through its operations in fixed, mobile and converged
broadband networking, Internet protocol (IP) technologies,
applications, and services, Alcatel-Lucent offers the end-to-end
solutions that enable communications services for people at
home, at work and on the move.  The company has operations in
Brazil and Indonesia.

On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed
their merger transaction, and began operations as a
communication solutions provider under the name Alcatel-Lucent
on Dec. 1, 2006.

                        *    *    *

As reported on Dec. 14, 2006, following the completion of
Alcatel S.A.'s merger with Lucent Technologies Inc., at which
time Alcatel was renamed Alcatel-Lucent, Fitch Ratings
downgraded and removed Alcatel from Rating Watch Negative:

   -- Issuer Default Rating to BB from BBB-; and
   -- Senior unsecured debt to BB from BBB-.

Alcatel's F3 short-term rating has also been withdrawn.

The Rating Outlook for Alcatel-Lucent is Stable.

Fitch has also withdrawn these Lucent ratings due to the
lack of clarity regarding Alcatel's support and, therefore,
expected recovery of these securities in a distressed scenario:

   -- Issuer Default Rating BB-;
   -- Senior unsecured debt BB-;
   -- Convertible subordinated debt B; and
   -- Convertible trust preferred securities B.

Moody's Investors Service downgraded to Ba2 from Ba1 the
Corporate Family Rating of Alcatel S.A., which has completed its
merger with Lucent Technologies Inc. and was renamed to Alcatel-
Lucent.  The ratings for senior debt of Alcatel were equally
lowered to Ba2 from Ba1 and its Not-Prime rating for short-term
debt was affirmed.

At the same time, Moody's raised the ratings for senior debt of
Lucent to Ba3 from B1 reflecting both the standalone credit
profile of Lucent and, given the strategic importance of Lucent
to round-off the group's product range and regional presence,
expected financial support from Alcatel-Lucent, although this is
not formally committed at this time.  The ratings for the other
legacy debt of Lucent were raised to B2 from B3 for subordinated
debt and trust preferreds, and to P(B3) from P(Caa1) for
preferred stock issuable under its shelf registration.

Moody's has withdrawn Lucent's Corporate Family Rating of B1,
assuming that management of the two entities will be fully
integrated over the next several months and all of Lucent's non-
US activities merged with their Alcatel counterparts.  This
should result in a rapid convergence of the credit risks of the
affected companies.  The outlook for all these ratings is
stable.  This rating action concludes the rating reviews
initiated on April 3, 2006.

Standard & Poor's, on Dec. 6, 2006, said that following news
that the merger between French telecoms equipment supplier
Alcatel and U.S. peer Lucent Technologies Inc. has received
final approval from the U.S. Committee on Foreign Investments,
it has lowered its long-term corporate credit and senior
unsecured debt ratings on Alcatel -- now named Alcatel-Lucent --
to 'BB-' from 'BB', in line with its preliminary indication in
its Nov. 7, 2006 research update.

The 'B' short-term corporate credit rating on Alcatel-Lucent was
affirmed.  S&P said the outlook is positive.


BANCO INDUSTRIAL: Seeks US$40MM Funding from IFC for Bond Issue
---------------------------------------------------------------
Banco Industrial e Comercial SA has asked the International
Finance Corp. aka IFC to fund a bond issue in Brazilian real for
the equivalent of up to US$40 million, IFC said in a statement.

Business News Americas relates that Banco Industrial made a
three-year, US$150-million bond issue in September 2006.

According to IFC's statement, Banco Industrial would use money
raised from the bond issue to help pay for commercial lending
activities to small and medium enterprises.

The IFC board will disclose a decision on Feb. 28, BNamericas
states.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Sept. 5, 2006, Moody's Investors Service assigned a Ba3 long-
term foreign currency rating to Banco Industrial e Comercial
S.A. aka BICBANCO's US$100,000,000 senior unsecured notes, with
final maturity in 2009.  Moody's said the outlook on the rating
is stable.


BANCO ITAU: Credit Card Division Eyes BRL190 Bil. Sales Volume
--------------------------------------------------------------
Banco Itau Holding Financeira SA's credit card division expects
total credit card sales volume in Brazil to increase 20% to
BRL190 billion in 2007, compared with 2006, Business News
Americas reports.

Banco Itau told BNamericas that credit card sales volume
increased 23% to BRL157 billion in 2006, compared with 2005.  It
was lower than the 24.9% increase previously disclosed.

According to BNamericas, Banco Itau expects credit sales volume
to rise 16.6% to BRL14.0 billion in January 2007, compared with
January 2006.

Banco Itau told BNamericas that credit card sales volume in the
tourism and entertainment sector will increase to BRL18.0
billion in 2007, accounting for almost 10% of all sales.

Credit sales volume would not slow down in 2007.  Rather, it
will grow at least 23% compared with 2006, BNamericas says,
citing Artur Gimenes, a Local credit card analyst from Ibope
Inteligencia.

Mr. Gimenes commented to BNamericas, "There is still plenty of
room for growth, especially among low-income earners, and we
expect the same rate of growth for 2008 as well."

Plastic cards exceeded checks first time as a method of payment
in 2006, BNamericas states, citing Mr. Gimenes.

Banco Itau Holding Financeira SA -- http://www.itau.com.br/--  
is a private bank in Brazil.  The company has four principal
operations: banking -- including retail banking through its
wholly owned subsidiary, Banco Itau SA (Itau), corporate banking
through its wholly owned subsidiary, Banco Itau BBA SA (Itau
BBA) and consumer credit to non-account hold customers through
Itaucred -- credit cards, asset management and insurance,
private retirement plans and capitalization plans, a type of
savings plan.  Itau Holding provides a variety of credit and
non-credit products and services directed towards individuals,
small and middle market companies and large corporations.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
March 9, 2006, Standard & Poor's Ratings Services assigned a
'BB' currency credit rating on Banco Itau SA.

                        *    *    *

Fitch affirmed on Aug. 28, 2006, the ratings of the Itau Group
of banks and the National Long- and Short-term ratings of
BankBoston Banco Multiplo SA and its subsidiary, BankBoston
Leasing SA -- Arrendamento Mercantil (BankBoston Leasing).  This
followed the conclusion of the agreement between Banco Itau
Holding Financeira with Bank of America Corp. to acquire BAC's
Brazilian operations (spearheaded by BKB) and its Latin American
subsidiaries.  Central Bank of Brazil approved the BKB
transaction on Aug. 22, 2006, and the acquisition of the local
subsidiaries of BAC is contingent on approval by the Chilean and
Uruguayan regulatory authorities.

The affected ratings of Banco Itau were:

   Banco Itau Holding Financeira

      -- Foreign currency IDR affirmed at 'BB+', Stable Outlook

      -- Short-term foreign currency rating affirmed at 'B'

      -- Local currency IDR affirmed at 'BBB-' (BBB minus),
         Stable Outlook

      -- Short-term local currency rating affirmed at 'F3'

      -- Individual rating affirmed at 'B/C'

      -- National Long-term rating affirmed at 'AA+(bra)',
         Stable Outlook

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

      -- Support rating affirmed at '4'


BANCO NACIONAL: Authorizes Issuing US$200MM Capital for Andean
--------------------------------------------------------------
Banco Nacional Desenvolvimento Economico e Social aka BNDES
authorizes the subscription of the issuing capital of Andean
Development Corp. or CAF, in a total amount of up to
US$200,000,000.

BNDES Pres. BNDES Demian Fiocca and CAF Pres. Enrique Garcia,
who were in a meeting in Rio de Janeiro, emphasized that the
initiative is part of the effort from both entities in operating
coordinately to promote South-American integration, by marking a
partnership between the institutions.

The schedule of the subscription will be set due to the first
joint financing operation to be contracted by the institutions
to support the integration projects that will be able to be
identified in the portfolio that is under analysis by the
organizations.

The implementation of joint operations increases the security of
loans and enables the information exchange between the
institutions, contributing to the feasibility of a large number
of endeavors in the region.

The capital increase also makes possible the higher number of
CAF's financing to the projects to be carried out in Brazil.  In
this context, BNDES and CAF will work to identify project
portfolios in Brazil, which are liable to the CAF's financing,
aiming at increasing its operation in the country.

The financings will become feasible upon the construction of
operating models of a joint operation, including the modalities
of co-financing and guarantee rendering by the Andean
institution, among others.

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: OKs Seed Capital Prog. to Boost Small Businesses
----------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social aka BNDES
approves the creation of Seed Capital Program or Criatec with
the objective of guaranteeing a proper financial and managerial
support to innovating and start-up micro and small enterprises.
The program targets, basically, the businesses directed to
Information Technology, Biotechnology, New Materials, Precision
Mechanic, Nanotechnology and Agribusiness.

Criatec will have a BRL80 million budget, with a four-year term
investment.  It is expected that the Program enables the
capitalizaton of up to 60 innovating micro and small
enterprises, with an investment ranging between BRL500,000 and
BRL1 million.  The initiative will generate about 3,000
specialized work posts.

The strategic importance of BNDES' initiative is related to the
construction of a productive chain of innovating enterprises.
Also, BNDES' share will help in the transformation of national
investment into science and technology of products and processes
that will be part of different sectors of economy, contributing
to the insertion of Brazil in the new threshold of innovation
field.

In Brazil, the permanent and systematic support, through risk
capital, is insufficient for the start-up of enterprises that
are directed to innovation.  BNDES understands that Brazilian
State, as in international experience, may have a fundamental
role in the support to the sector, through its promotion
institutions, as the private capital market of the country still
does not have proper instruments directed to this type of
enterprise.

Criatec's regulation will establish the main rules to be met by
enterprises that will be supported, and it is important to
emphasize that:

   -- It will be able to support the enterprises with net profit
      of up to BRL6 million, in the previous year to the program
      capitalization;

   -- At least 25% of the Fund equity will be invested in
      enterprises with profit of up to BRL1.5 million; and

   -- At most 25% of the fund equity shall be invested in
      enterprises with profit between BRL4.5 million and
      BRL6 million.

The program forecasts the constitution of a Mutual Fund of
Closed Investment, whose quotes can be subscribed by, besides
BNDESpar, other partners interested in adhering to the Program,
being important to emphasize FINEP.  The Fund will capitalize
the innovating start-up enterprises with great growth potential.

The National Fund, which will be a traditional Mutual Fund of
Investment in Emerging Enterprises, will be managed by a private
manager to be chosen in a detailed selection process that will
still take place in the first quarter of current year.

It will be the manager's responsibility, who is in charge by the
National Fund, to select the Regional Managers in the main
innovating complexes of Brazil, which will be responsible for
investments and monitoring in target enterprises.  Each one of
these Regional Managers will operate in a specific area of
Brazil, with an operating distance between 100 and 200
kilometers.

There will be only one National Fund, and the future contracting
of regional managers, who will operate as "local funds" but they
will not be constituted as such, will enable the reduction of
administrative expenses.

It will be created with at least six and at most eight Regional
Managers.  As determined by the Regulation, the National Fund
Manager must seek for, besides regions with higher potential for
innovation, the decentralization; thus, the National Fund
Manager must seek for the identification of investment targets
in the regions that are outside the South and Southeast axis.

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/--


BARRY CALLEBAUT: European Sales Rise 5.8% in First Quarter
----------------------------------------------------------
Barry Callebaut AG disclosed of its key sales figures for the
first three months of fiscal year ended Nov. 30, 2006.  In
addition, the company reconfirmed the decision to repay the
outstanding 9-1/4% High-Yield Bond due 2010 in the amount of
EUR165 million at the earliest call date, which is March 15.

Starting as of the current fiscal year, Barry Callebaut is also
bringing its disclosure of financial results in line with other
major food companies.  The company will publish only key sales
figures for the first and the third quarter but maintain the
publication of detailed half-year and full-year results.

Overview of business performance in the first three months of
fiscal year 2006/2007

As of Sept. 1, 2006, Barry Callebaut introduced a new
organizational structure with a regional focus.  This change
results in a new reporting structure in line with the company's
main business regions, i.e. Europe, the Americas, Asia, & the
Rest of the World.  Operating results per business segment will
still be given on a semi-annual basis as before.

Sales volumes for the Group went up to 316,506 tonnes, which
corresponds to a strong organic growth of 5.7%.  Sales revenue
grew by 3.6% to CHF1,241.7 million.

"We were able to carry the strong fourth quarter growth of the
past fiscal year into the first quarter of the current fiscal
year; seasonal Christmas business was again very good. Our new
organizational structure introduced as of Sept. 1, 2006, will
allow us to drive the intended geographic expansion and growth
outside of Western Europe with the necessary determination. We
are satisfied with our results for the first three months of
fiscal year 2006/2007," said Chief Executive Officer Patrick De
Maeseneire.

According to Bloomberg News, the company's sales figures matched
the median estimate of four analysts surveyed by Bloomberg.

"The company is in good shape, with the growth story in its two
most important segments convincing,'' Daniel Buerki, an analyst
at Zuercher Kantonalbank, said in a note to investors, referring
to Callebaut's industrial and gourmet units.  Mr. Buerki has a
"market perform" recommendation on the stock.

                      Sales by region

Region Europe

Region Europe had a sales volume growth of 7.7% to 215,984
tonnes, driven by good sales mainly in the business with
industrial and artisanal customers.  Sales revenue increased
5.8% to CHF886.3 million, up from CHF838.0 million for the same
prior-year period, mainly as a result of higher sales volumes,
helped by positive foreign exchange effects.

The Food Manufacturers business unit benefited from increased
and new outsourcing volumes in Western Europe and very strong
growth in Eastern Europe.  The Gourmet & Specialties business
unit recorded very good sales in Central and Eastern Europe.
The earlier communicated discontinuation of the Manner contract
and of some unprofitable customer label contracts led to
slightly lower sales revenue in the Consumer Products Europe
business unit, but resulted in a more profitable product mix.
Higher sales of branded and co-manufactured products compensated
for some of this sales revenue decrease.

Region Americas

Sales volumes in Region Americas slightly increased to 80,717
tonnes.  Sales revenue declined by 4.0% to CHF278.1 million,
down from CHF289.8 million.  This was the result of lower sales
of consumer products and negative foreign exchange effects,
partly offset by higher sales in the other businesses.

Sales in the Food Manufacturers and the Gourmet & Specialties
business units showed solid growth rates.  Consumer Products
North America did not renew a low-margin contract with a major
U.S. retailer for Halloween products and discontinued a number
of unprofitable products.  This led to overall flat sales
volumes and lower sales revenue in this region.

Region Asia & Rest of the World

Region Asia & Rest of the World registered sales volumes of
19,805 tonnes, up 8.6% from the 18,239 tonnes of the prior year.
Sales revenue grew 9.3% to CHF77.3 million, up from CHF70.7
million.

Food Manufacturers benefited from strong growth in China,
starting, of course, from low levels.  Gourmet & Specialties did
particularly well in the premium product range, especially in
Japan.

Development of business segments in the first three months of
fiscal year 2006/2007

               Industrial Business Segment

The Industrial business segment focuses on selling cocoa and
chocolate products to industrial food processors and consumer
goods manufacturers worldwide.

Sales volumes were 219,998 tonnes, which represents an organic
growth of 10.5% from the 199,147 tonnes for same prior-year
period.

Sales volumes of Cocoa products sold to third-party customers
amounted to 36,025 tonnes, which is a plus of 9.4%.  Volumes
were pushed in order to compensate for the margin decline caused
by the deteriorating combined ratio.

Sales volumes in the Food Manufacturers business unit were
183,973 tonnes, 10.7% more than in the same prior-year period.
Main drivers were increased outsourcing volumes from existing
and new customers.

Sales revenue recorded in the Industrial business segment went
up 8.4% to CHF692.8 million, compared to CHF639.2 million for
the same prior-year period.

Sales revenue in the Cocoa business unit grew 4.7% to CHF117.3
million, as a result of higher sales volumes, despite the afore-
mentioned lower average sales prices resulting from the lower
combined ratio.

The Food Manufacturers business unit increased sales revenue by
9.2% to CHF575.5 million, up from CHF527.2 million for the same
prior-year period, benefiting from higher sales volumes as well
as exchange rate effects.

           Food Service/Retail Business Segment

The Food Service/Retail business segment serves a broad range of
customers, from local craftsmen to global retailers.

Sales revenue was CHF548.9 million, down 1.9% from CHF559.3
million recorded for the same prior-year period.

Sales revenue in the Gourmet & Specialties business unit
increased to CHF178.1 million, up 13.2% from CHF157.4 million
for the same prior-year period.  There were some positive
foreign exchange effects, but the main reason was strong growth
in all regions.

Sales revenue in the Consumer Products business units decreased
by 7.7% to CHF370.8 million, due to the discontinuation of
unprofitable contracts.

Early repayment of 9% High-Yield Bond due 2010 in the amount of
EUR165 million

Barry Callebaut will repay the outstanding 9% Senior
Subordinated Notes in the amount of EUR165 million on March 15,
by drawing on the existing Revolving Credit Facility of EUR850
million signed in August 2005.  Due to the call premium payable
of 4.625% and the write-off of the remaining capitalized
financing fee, the impact on net financial costs will be
negative in the amount of around CHF8 million in the current
fiscal year 2006/2007.  However, as from fiscal year 2007/2008,
net financial costs will improve substantially by about CHF14
million per annum.

                          Outlook

Looking ahead, CEO Patrick De Maeseneire said: "I am pleased
that we can repay the outstanding High-Yield Bond at the first
possible call date, thanks to our strong financial position.
This will have a direct positive impact on our financial
performance as of the next fiscal year.  The announced decline
in the combined ratio had the foreseen negative effect on our
first-quarter profitability but we were able to fully absorb
this thanks to the good operational performance of our other
businesses, including our European consumer business.
Therefore, and even though it is still early in the fiscal year,
we can confirm the communicated financial targets for the 3-year
period 2005/2006 through 2007/2008, which are on average:
organic top-line growth of 3-5%, EBIT growth of around 8-10%,
and PAT growth of 12-15%.  This outlook, of course, is given
barring any major unforeseen events."

                    About Barry Callebaut

With annual sales of more than CHF4 billion for fiscal year
2005/2006, Zurich-based Barry Callebaut -- http://www.barry-
callebaut.com/ -- is the world's leading manufacturer of high-
quality cocoa, chocolate, and confectionery products - from the
cocoa bean to the finished product on the store shelf.  Barry
Callebaut is present in 25 countries, operates more than 30
production facilities and employs around 8,000 people.  The
company has offices in Brazil and Mexico in Latin America.  It
serves the entire food industry, from food manufacturers to
professional users of chocolate, to global retailers.  It also
provides a comprehensive range of services in the fields of
product development, processing, training, and marketing.

On Nov. 29, 2006, TCR-Europe reported that Moody's upgraded the
corporate family rating of Barry Callebaut AG to Ba1 and
upgraded to Ba3 the rating on the EUR165-million senior
subordinated notes due 2010 issued by its subsidiary Barry
Callebaut Services N.V.  Moody's said the outlook is stable.


COMPANHIA SIDERURGICA: Ups Loan by 20% to Finance Corus Bid
-----------------------------------------------------------
Companhia Siderurgica Nacional has convinced its bankers to
increase the loan commitments to finance its Corus bid by up to
20%, Valor Economico reports.

Valor Economico emphasizes that in Brazil, UBS and Citigroup
have agreed a credit increase for Companhia Siderurgica, while
Barclays, Goldman Sachs and ING have followed suit abroad.

Companhia Siderurgica has the higher bid on table and it was
confident of winning Corus.  However, the request for higher
loan commitments could be aimed at handling a possible crisis
situation resulting from a higher offer from Tata Steel, The
Economic Times notes, citing sources close to Companhia
Siderurgica.

The Economic Times underscores that Companhia Siderurgica's
offer comprises of about US$3.5 billion in cash and US$8 billion
through debt facilities.  An increase of up to 20% in the loan
commitments would take the total enterprise value of the deal to
over US$12 billion.

Sources told The Economic Times that Companhia Siderurgica is
claiming that its sufficient iron ore supply and cheap steel
slabs from Brazil would lead to operational savings of up to
US$350 million, which could help the firm to quickly pay off the
debt.

The Economic Times relates that Companhia Siderurgica and Tata
Steel, its rival in the Corus acquisition, are not in a hurry to
increase their offers.  Both firms would like to wait until the
last minute to cut the reaction time for the rival bidder.
However, the two firms might not like to delay any increase in
their bids to a point when the regulators step in with their
auction process.

As reported in the Troubled Company Reporter-Latin America on
Jan. 12, 2007, the Takeover Panel, the independent UK-based
merger and acquisition regulator, set a Jan. 30 deadline for
revisions to takeover offers from Companhia Siderurgica and
Tata.

Companhia Siderurgica and Tata Steel expressed their
apprehensions against the auction process, as the Takeover Panel
could ask for a minimum increase of anything between 25 pence
and 50 pence between each offer, The Economic Times says, citing
merchant banking sources close to Corus.

The auction process could also further delay the result, as
compared to a winner being decided before the intervention of
the Takeover Panel, The sources told The Economic Times.

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

                        *    *    *

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

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

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


EMI GROUP: To Drop Suit Against Baidu; Launches Free Streaming
--------------------------------------------------------------
EMI Group Plc will drop legal charges against Baidu.com Inc. and
collaborate with the Chinese Internet-search company on a
program that will allow Chinese Internet users to listen to EMI
songs free of charge, The Wall Street Journal reports.

EMI and six other music industry giants filed a lawsuit against
Baidu in 2005, arguing that the Chinese company infringed on
copyrights by providing links in its search results to
unlicensed MP3 versions of songs on other sites.  Baidu refuted
the claim, denying any wrongdoing since it doesn't supply the
files for download, the Journal relates.

In a statement released Jan. 16, the London-based company
revealed that EMI Music and Baidu entered into a pioneering
strategic partnership to launch an advertising-supported online
music streaming service in China, the first revenue-sharing
arrangement between an Internet search engine and international
music company in the country.  EMI and Baidu also agreed to
explore developing advertising-supported music download
services.

This agreement will see Chinese repertoire from EMI's Typhoon
Music being made available for streaming, at no charge, to all
users of Baidu.

Baidu will set up a special "EMI Music Zone" in its music search
channel, which will legally stream all of EMI Music's Chinese
repertoire, including recordings from artists such as Jolin
Tsai, Stephanie Sun, David Tao, Sandy Lam, and Richie Ren.
While consumers listen to the music for free, they will be
exposed to Internet advertising, and EMI and Baidu will share
the revenue generated by the advertising, a pioneering approach
to promoting digital music in China.

Mr. Robin Li, chairman and chief executive officer of Baidu
said: "We believe this cooperation between Baidu and EMI will
create a meaningful ecosystem for value generating services for
Baidu users, content providers, and advertisers.  The
cooperation with EMI, the world's best music major and no. 1
Chinese repertoire music company, has set the stage for win-win
cooperation between the Internet and music industries.  It also
sets the direction and a new model for future ongoing digital
music business development in the Internet era."

"With Baidu's close relationship with Chinese digital music
lovers, EMI and Baidu's cooperation is a major breakthrough in
the history of online music in China.  It provides an efficient
digital distribution platform to reach Chinese consumers,
allowing fans to listen to EMI's latest quality music
immediately on the Internet," said Norman Cheng, chairman of EMI
Music Asia and director of Typhoon Music.

"The cooperation between Baidu and EMI also moves us towards
jointly controlling digital piracy, something that is important
to EMI in the Chinese digital music market.  Our cooperation
with the world's largest Chinese search engine is also part of
EMI's strategic roadmap to expanding digital music development
across the region."

Following a Chinese court ruling in favor of Baidu in November
2006, the International Federation of the Phonographic Industry,
which led the copyright infringement suit on behalf of the
record labels, filed for an appeal.  However, in light of EMI's
recent partnership with Baidu, Joanna Huang, Chinese repertoire
general manager for EMI Music Marketing China, said that EMI
would withdraw from the appeal, the Wall Street Journal states.

According to the report, the two companies agreed to explore ad-
driven music-download services, but they have yet to reach a
deal.

Baidu is the largest Internet portal in China and the fourth
largest in the world.  According to the 2006 report from the
official China Internet Network Information Center, Baidu has a
market share in overall search of 62.1%, while the latest report
from iResearch, a market research company for China's Internet
industry, calculates that the company has an 84% share of music
searches.  With over 150 million Internet users in China and the
clear popularity of Chinese music, this new service provides a
new business model in China for the development of the online
music market.

                          About EMI

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

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

                        *    *    *

As reported on Jan. 17, Moody's Investors Service downgraded EMI
Group plc's Corporate Family and senior debt ratings to Ba3 from
Ba2.  All ratings remain under review for possible further
downgrade.

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

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


EMI GROUP: Networking Web Sites to Give Songwriters More Value
--------------------------------------------------------------
MySpace.com and other social networking Web sites will create
more value for songwriters compared with advertising-supported
acquisition sites such as SpiralFrog, revealed Roger Faxon, EMI
Group Plc's music publishing unit president, Bloomberg News
reports.

"The price businesses have paid to purchase these sites is an
indication that people believe there will be a great deal of
advertising revenue generated," Mr. Faxon was quoted by
Bloomberg as saying.

News Corp., controlled by Rupert Murdoch, acquired MySpace.com
operator Intermix Media Inc. in September 2005 for US$580
million.  In November 2006, Google Inc. shelled out US$1.65
billion to purchase YouTube Inc., which lets users post videos
on its Web site for others to watch, Bloomberg says.

Social networking Web sites ask users to provide personal
information and group them according to their interests, making
targeted marketing easier, according to Nick Bertolotti, an
analyst at Credit Suisse.  This helps music companies find
alternative ways to increase sales and address the dent caused
by piracy and illegal downloading, Bloomberg states.

Warner Music Group Corp., in September 2006, became the first
record company to allow users of YouTube's Web site to download
and manipulate copyrighted music and videos in exchange for part
of the advertising revenue, according to Bloomberg.

Commenting on the rise of social networking sites, Mr. Faxon
said: "The growth in participation has been so rapid and
culturally deep across the whole population, but largely among
people under the age of 25, that it's become part of the
culture.  When something becomes part of the culture and is
fulfilling a need in that culture, it's likely to persist."

Mr. Faxon further said that performance revenues are growing,
unlike industry mechanical revenues.  "These sites are largely
performance-related, so you're listening to it, you're
participating in it," he said.  "Do I think that they will drive
a substantial shift further away from models that were about the
sale of music?  Yes, I do."

While the sale of music will remain "important," Mr. Faxon said,
"the broader consumer participation in social networking sites
puts music into a broader context and will probably draw more
people, and in turn more advertising."  While this doesn't mean
SpiralFrog and Qtrax won't serve a distinct audience and be
"successful," social networking sites will "create more value"
for songwriters, he concluded.

In June 2006, EMI entered into an accord with online music
service Qtrax, which permits users to listen to songs free for a
fixed number of times in an ad-funded service.  The company's
music publishing division agreed in September 2006 to allow the
ad-supported SpiralFrog Web site to use EMI's catalog of music
for its download service in the U.S., Bloomberg News reports.

New York-based SpiralFrog offers legal music downloading to
users of its no-cost service.  In August 2006, it revealed that
Vivendi SA's Universal Music Group would offer its songs for
free to SpiralFrog's North American customers, Bloomberg News
states.

                          About EMI

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

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

                        *    *    *

As reported on Jan. 17, Moody's Investors Service downgraded EMI
Group plc's Corporate Family and senior debt ratings to Ba3 from
Ba2.  All ratings remain under review for possible further
downgrade.

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

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


GP INVESTMENTS: Prices US$150 Million 10% Perpetual Notes at Par
----------------------------------------------------------------
GP Investments, Ltd., priced an offering of its US$150 million
10% Secured Perpetual Notes, at par.  The notes are perpetual
with no fixed final maturity date, are non-callable for five
years, and will bear interest at the rate of 10% per year,
payable quarterly, beginning April 23, 2007.  The offering was
expected to close on Jan. 23, 2007.

The notes are secured by a first priority pledge of shares
representing 100% of the currently issued and outstanding shares
of GP Private Equity Ltd., a wholly owned subsidiary of GP
Investments through which substantially all its equity
investments will be made.  GP Investments will maintain with the
trustee a cash reserve account, which will initially be funded
with an amount that is equivalent to 18 months of interest
payments on the notes.

The notes constitute general unsubordinated obligations of GP
Investments and will at all times rank pari passu among
themselves and with all its other unsubordinated indebtedness.
The notes are rated B+ by Standard & Poor's Rating Services
(outlook stable) and B by Fitch Ratings (outlook stable).  GP
Investments will use the net proceeds from the offering to make
acquisitions in accordance with its investment strategy and for
general corporate purposes.

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

                        *    *    *

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

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

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


JABIL CIRCUIT: Declares US$0.07 Per Share Quarterly Dividend
------------------------------------------------------------
Jabil Circuit, Inc.'s board of directors has approved payment of
a quarterly dividend to common stockholders.  The dividend of
US$0.07 per share is payable on March 1, 2007, to shareholders
of record on Feb. 15, 2007.

The company intends to continue to pay regular quarterly
dividends; however the declaration and payment of future
dividends are discretionary and will be subject to determination
by the board of directors each quarter following its review of
the company's financial performance.

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

                        *    *    *

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


METSO OYJ: Paper Unit Inks EUR100-Million Supply Deal in Japan
--------------------------------------------------------------
Metso Paper, a unit of Metso Oyj, will supply a large
OptiConcept papermaking line to a Japanese paper mill.  The name
of the customer was not disclosed.

The new line will come on stream during the 2nd quarter of 2008.
The order, valued at more than EUR100 million, has been recorded
in the 4th quarter 2006 order intake.

The line will produce more than 400,000 t/y of woodfree-coated
paper.

Metso's scope of supply contains stock preparation equipment; a
1,800 m/min, 10.7-meter-wide OptiConcept paper machine, air
systems, auxiliary systems and automation systems.

                        About Metso

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

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

                        *    *    *

As reported on April 11, 2006, Standard & Poor's Ratings
Services revised its outlook on Finland-based machinery and
engineering group Metso Corp. to positive from stable,
reflecting improvements in the group's operating performance and
capital structure that offer it the potential to return to a low
investment-grade rating.  The 'BB+' long-term and 'B' short-term
corporate credit ratings, as well as the 'BB' senior unsecured
debt rating on the group were affirmed.


METSO OYJ: Nomination Committee Proposes Seven Members to Board
---------------------------------------------------------------
The Nomination Committee established by the Metso's Annual
General Meeting on April 4, 2006, proposes to the next Annual
General Meeting, which is planned to be held on April 3, 2007,
that the number of board members remains at seven.

The Nomination Committee proposes the re-election of these
current Board members:

   -- Svante Adde,
   -- Maija-Liisa Friman,
   -- Christer Gardell,
   -- Matti Kavetvuo,
   -- Yrjo Neuvo and
   -- Jaakko Rauramo.

Matti Kavetvuo is proposed to continue as Chairman of the Board
and Jaakko Rauramo as Vice Chairman.  It is also proposed that
Eva Liljeblom, Professor at Swedish School of Economics and
Business Administration, Helsinki, Finland, shall be elected as
a new member of the Metso Board.

The new proposed Board member, Eva Liljeblom, Ph.D. (Econ.), is
the Professor in Finance and Head of the Department of Finance
and Statistics at Swedish School of Economics and Business
Administration, Helsinki, Finland.  She holds currently Board
membership positions at Stockman PLC, a Finnish-based department
store and retailer, at Fennia Mutual Insurance Company, Finland,
at Municipality Finance PLC, Finland and is the Chairman of the
Investment Consultative Committee of the State Pension Fund,
Finland, the member of the Investment Strategy Council of the
Government Pension Fund - Global, Norway, and Official
Controller of the OMXH25 index (Indeksiasiamies) for the
Helsinki stock market.

The Nomination Committee proposes these annual fees to be paid:

   * Chairman of the Board -- EUR80,000,

   * Vice Chairman of the Board and Chairman of the Audit
     Committee -- EUR50,000, and

   * other Board members -- EUR40,000.

In addition, a fee of EUR500 per meeting is paid to all members
for the Board and Board committee meetings they attend.

Metso's Board of Directors will include these proposals into the
Annual General Meeting notice.

                  Personnel Participation

The Nomination Committee notes that a personnel representative
will participate as an external expert in the Metso Board
meetings also in the next Board term within the limitations
imposed by the Finnish law. The new Board will invite the
personnel representative as its external expert in April 2007.

                  The Nomination Committee

The members of the Nomination Committee were:

   -- Markku Tapio (Chairman of the Nomination Committee),
      Director General, State Shareholdings unit
      (State of Finland);

   -- Harri Sailas, CEO (Ilmarinen Mutual Pension Insurance
      Company);

   -- Mikko Koivusalo, Director, Investments (Varma Mutual
      Pension Insurance Company) and

   -- Henry Wiklund, Managing Director (Svenska
      litteratursallskapet i Finland r.f.).

Matti Kavetvuo, Chairman of Metso's Board of Directors, served
as the committee's expert member.

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

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

                        *    *    *

As reported on April 11, 2006, Standard & Poor's Ratings
Services revised its outlook on Finland-based machinery and
engineering group Metso Corp. to positive from stable,
reflecting improvements in the group's operating performance and
capital structure that offer it the potential to return to a low
investment-grade rating.  The 'BB+' long-term and 'B' short-term
corporate credit ratings, as well as the 'BB' senior unsecured
debt rating on the group were affirmed.


FIDELITY NATIONAL: Fitch Rates US$3-Bil. Credit Facility at BB+
---------------------------------------------------------------
Fitch Ratings assigned a senior unsecured rating of 'BB+' for
Fidelity National Information Services' new US$3 billion senior
unsecured credit facilities.  The facilities consist of a US$2.1
billion term loan and a US$900 million revolving credit
facility.  The company used the proceeds to refinance existing
debt.  Fidelity's Issuer Default Rating remains at 'BB+'.  The
Rating Outlook is Stable.

The ratings recognize the company's ability to generate strong
free cash flow, its strong market position in core businesses,
diversified product offering, solid client retention, counter-
cyclical revenue streams, and recurring revenue base from long-
term processing agreements.  The ratings also recognize the
benefits realized by Fidelity from its acquisition of Certegy
Inc. in early 2006.  Fitch believes the strong operating
performance of Fidelity as a stand-alone company, the operating
strength and business diversification brought from Certegy,
sound liquidity, and improved leverage also support the ratings.

Credit concerns include Fidelity's history of debt-financed
acquisitions, well-capitalized significant industry competitors,
the ongoing consolidation of its financial institution customer
base, and event risk associated with two private equity firms
that have a combined equity stake of approximately 15%.  Fitch
believes that potential acquisitions also remain a risk but
expects the company will have the financial flexibility and
capacity to manage its leverage accordingly.  Incorporating
incremental EBITDA from Certegy, pro forma 2006 leverage was
approximately 2.5 times, which is within our expectations and
comfortably within the 3.5x leverage covenant of the new
unsecured credit facilities.

Liquidity is adequate and supported by cash balances of US$174.6
million at 3rd quarter ended Sept. 30, 2006, as well as
approximately US$286 million of availability under its revolving
credit facilities.  For 2007, liquidity is expected to remain
adequate with cash balances and free cash flow similar to
historical levels and availability under the new unsecured
credit facilities of approximately US$340 million.  Total debt
for 2006 is expected to be in the range of US$2.7 billion-
US$2.9 billion and management has stated its plans to reduce
debt over the next few years.  The company has a US$200 million
share repurchase program, which will utilize some of Fidelity's
free cash flow.  Fitch believes approximately US$100 million
will likely be repurchased in 2007.

Headquartered in Jacksonville, Florida, Fidelity National
Information Services, Inc. --
http://www.fidelityinfoservices.com/-- provides core processing
for financial institutions; card issuer and transaction
processing services; mortgage loan processing and mortgage
related information products; and outsourcing services to
financial institutions, retailers, mortgage lenders and real
estate professionals.  FIS has processing and technology
relationships with 35 of the top 50 global banks, including nine
of the top ten.  Nearly 50% of all US residential mortgages are
processed using FIS software.  FIS maintains a strong global
presence, serving over 7,800 financial institutions in more than
60 countries worldwide, including Brazil.


NOVELL INC: Wal-Mart Supports Alliance with Microsoft
-----------------------------------------------------
Microsoft Corp. and Novell Inc. disclosed that Wal-Mart Stores
Inc., the world's largest retailer, became the latest customer
to take advantage of the benefits of the new collaboration on
interoperability between Microsoft Windows and Linux.  Under the
agreement, Microsoft will deliver SUSE Linux Enterprise Server
subscription certificates to Wal-Mart for use in Wal-Mart's IT
infrastructure.  The engagement among the three companies opens
a host of other potential opportunities for both Microsoft and
Novell to provide Wal-Mart with additional software resources
and support, building on future joint research and developments
around virtualization and interoperability.

Wal-Mart, already a significant user of Microsoft products, is
pleased that the collaboration will improve interoperability
among various systems.  "We have wanted information technology
vendors to deliver true interoperability and IP assurance
between multiple platforms for some time now, and we are pleased
that Microsoft and Novell are committed to fulfilling that
need," said Nancy Stewart, senior vice president and chief
technology officer of Wal-Mart.  "Wal-Mart is known around the
world for its innovative use of technology.  Selecting Microsoft
and Novell is another step in that strategy.  The net result is
a win for us and, more importantly, for our customers."

"Customers tell us every day that they need to operate a cost-
effective IT organization and leverage the most they can out of
their investments," said Ron Hovsepian, president and CEO of
Novell.  "Through our relationship with Microsoft, we've created
new opportunities for enterprise interoperability and
virtualization that ultimately result in real savings for our
customers.  We are delighted that Wal-Mart has chosen SUSE Linux
Enterprise, and we look forward to collaborating with them for
many years."

By working together with Microsoft and Novell, Wal-Mart gains
the ability to manage Windows and Linux by extending its
existing Microsoft management tool set and authentication
platform: Systems Management Server, Active Directory and
Microsoft Operations Manager.  Wal-Mart can also move to lower-
cost commodity server hardware while simultaneously improving
the customer experience.

"Customers tell us that they need interoperability and that they
want their technology vendors to manage the underlying
intellectual property issues in software," said Steve Ballmer,
CEO of Microsoft.  "We are delivering this to Wal-Mart and
giving them peace of mind so they can focus on their business
and build for the future."

             The Microsoft-Novell Agreement

On Nov. 2, 2006, Novell and Microsoft announced a series of
agreements to jointly build, market and support new solutions to
improve interoperability, deliver powerful new virtualization
capabilities, make Microsoft and Novell products work better
together, and give customers peace of mind that both companies
stand behind the products they deliver.  As part of this five-
year agreement, Microsoft agreed to use, resell or distribute
certificates that customers redeem to receive SUSE Linux
Enterprise Server subscriptions for upgrades, updates and
technical support from Novell.

Since the announcement, more than 35,000 new certificates for
three-year priority support subscriptions to SUSE Linux
Enterprise Server have been activated under the Microsoft and
Novell collaboration agreement.

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

Novell has sales offices in Argentina, Brazil and Colombia.

                     Waiver of Default

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

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

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


PETROLEO BRASILEIRO: Gets Tenders of US$392MM for Exchange Offer
----------------------------------------------------------------
Petroleo Brasileiro S.A. aka Petrobras disclosed that its wholly
owned subsidiary Petrobras International Finance Company aka
PIFCo, in connection with the previously announced offer to
exchange five series of notes for new notes and a cash amount,
has received tenders of approximately US$392 million principal
amount of Old Notes by the early tender date, which occurred at
5:00 p.m., New York City time, on Jan. 19, 2007 (Early Tender
Date).

Specifically, PIFCo received tenders of approximately:

   -- US$7.2 million principal amount of the 12.375% Global
      Step-Up Notes due 2008;

   -- US$12.9 million principal amount of 9.875% Senior Notes
      due 2008;

   -- US$47.4 million principal amount of the 9.75% Senior
      Notes due 2011;

   -- US$123.7 million principal amount of the 9.125% Global
      Notes due 2013 and

   -- US$200.8 million principal amount of the 7.750% Global
      Notes due 2014.

The Reopening Notes constitute a further issuance of, and form a
single fungible series with, PIFCo's 6.125% Global Notes due
2016 that were issued on Oct. 6, 2006.

The cash payment, reference treasury yield, and total exchange
price for each series of Old Notes as well as the reference
treasury yield and reopen issue price for the Reopening Notes
was determined on Jan. 22, 2007, in the manner described in the
applicable prospectus dated Jan. 4, 2007.

The exchange offers are scheduled to expire at 12:00 midnight,
New York City time, on Feb. 2, 2007, unless extended or earlier
terminated.  The terms of the exchange offers are further
described in the Prospectus.

PIFCo has retained Morgan Stanley & Co., Incorporated and UBS
Securities LLC to act as dealer managers for the offers, The
Bank of New York to act as exchange agent for the offers, The
Bank of New York (Luxembourg) S.A. to serve as Luxembourg agent
for the offers and D.F. King & Co., Inc. to act as information
agent for the offers.

Requests for documents (including the prospectus) may be
directed to:

         D.F. King & Co., Inc.
         48 Wall Street, 22nd Floor
         New York, New York 10005
         Telephone:(212) 269-5550 for banks and brokers
                   (800) 859-8508 for all others

Questions regarding the offers may be directed to:

         Morgan Stanley & Co., Incorporated
         Telephone: (800) 624-1800 (in the United States)
                    (212) 761-1864 (outside the United States);

                     or

         UBS Securities LLC
         Telephone:(888) 722-9555, ext. 4210 (in the United
                   States)
                   (203) 719-4210 (outside the United 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, and 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: In Talks with Iran on Offshore Drilling
------------------------------------------------------------
A spokesperson of Brazil's state oil company Petroleo Brasileiro
SA told Dow Jones Newswires that the firm is negotiating with
Iran to become a service provider in Caspian Sea deep offshore
drilling.

Iran's state oil National Iranian Oil Co. had expressed interest
in cooperating with Petroleo Brasileiro, Dow Jones notes, citing
the spokesperson.

Petroleo Brasileiro has better expertise in deep offshore
drilling, compared with National Iranian, the spokesperson told
Dow Jones.

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

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

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

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

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


PETROLEO BRASILEIRO: PIFCo Prices Exchange Offer of Notes
---------------------------------------------------------
Petroleo Brasileiro S.A. aka Petrobras and its wholly owned
subsidiary Petrobras International Finance Company aka PIFCo, in
connection with the previously announced offers to exchange the
five series of notes listed in the table below for new notes and
a cash amount, disclosed PIFCo's determination of the total
exchange price, the reference treasury yield and the cash
payment per US$1,000 of Old Notes exchanged.

The total exchange price, reference treasury yield and cash
payment per US$1,000 of Old Notes were calculated as described
in the applicable prospectus dated Jan. 4, 2007.  The reference
treasury yield and reopen issue price were determined for the
Reopening Notes as described in the Prospectus.  All values were
calculated as of 2:00 p.m., New York City time, on
Jan. 22, 2007.

   PIFCo Notes: 12.375% Global Step-Up Notes due 2008
   CUSIP/ISIN:  71645WAF8/US71645WAF86
   Amount Tendered by Early Tender Date:  US$7,184,000
   Reference Treasury Security:  4.625% due 3/31/08
   Reference Treasury Yield:  5.046%

   PIFCo Notes: 9.875% Senior Notes Due 2008
   CUSIP/ISIN:  G7028BAA9/US G7028BAA91*
                71646FAA5/US71646FAA57
                71646FAB3/US71646FAB31*
   Amount Tendered by Early Tender Date:  US$12,871,000
   Reference Treasury Security:  2.625% Due 5/15/08
   Reference Treasury Yield:  4.989%

   PIFCo Notes: 9.75% Senior Notes Due 2011
   CUSIP/ISIN:  71645WAB72/US71645WAB72*
                 G7028BAB7/USG7028BAB74*
                 71645WAA9/US71645WAA99
   Amount Tendered by Early Tender Date:  US$47,440,000
   Reference Treasury Security:  5.125% Due 6/30/11
   Reference Treasury Yield:  4.768%

   PIFCo Notes: 9.125% Global Notes Due 2013
   CUSIP/ISIN:  71645WAG6/US71645WAG69
   Amount Tendered by Early Tender Date:  US$123,674,000
   Reference Treasury Security:  4.250% Due 8/15/13
   Reference Treasury Yield:  4.751%

   PIFCo Notes: 7.750% Global Notes Due 2014
   CUSIP/ISIN:  71645WAJ0/US71645WAJ09
   Amount Tendered by Early Tender Date:  US$200,800,000
   Reference Treasury Security:  4.250% Due 8/15/14
   Reference Treasury Yield:  4.765%

PIFCo           Cash               Accrued       Total Exchange
Notes           Payment            Interest           Price

12.375% Global  US$104.98          US$43.31       US$1,079.56
Step-Up Notes
due 2008

9.875% Senior   US$63.60           US$24.14       US$1,057.35
Notes due 2008

9.75% Senior    US$171.37           US$8.40       US$1,180.86
Notes due 2011

9.125% Global   US$172.42           US$8.87       US$1,181.44
Notes due 2013

7.750% Global   US$120.46            US$30.57      US$1,107.78
Notes due 2014

The following table should be used in connection with the
calculation of the Reopen Issue Price of the Reopening Notes and
the yield to maturity of the Original 2016 Notes for the
Qualified Reopening Condition, as set forth in the Prospectus:

                         Reference   Reference           Reopen
PIFCo     CUSIP/ISIN     Treasury    Treasury   Accrued   Issue
Notes     No.            Security    Yield     Interest   Price

6.125%
Global    71645WAL5/      4.625%      4.761%    $20.59  $997.30
Notes     US71645WAL54     due
due 2016                 11/15/16

The exchange offers are scheduled to expire at 12:00 midnight,
New York City time, on Feb. 2, 2007, unless extended or earlier
terminated.  Further terms and conditions of the exchange offers
are described in the Prospectus.

PIFCo has retained Morgan Stanley & Co., Incorporated and UBS
Securities LLC to act as dealer managers for the offers, The
Bank of New York to act as exchange agent for the offers, The
Bank of New York (Luxembourg) S.A. to serve as Luxembourg agent
for the offers and D.F. King & Co., Inc. to act as information
agent for the offers.

Requests for documents (including the prospectus) may be
directed to:

         D.F. King & Co., Inc.
         48 Wall Street, 22nd Floor
         New York, New York 10005
         Telephone:(212) 269-5550 for banks and brokers
                   (800) 859-8508 for all others

Questions regarding the offers may be directed to:

         Morgan Stanley & Co., Incorporated
         Telephone: (800) 624-1800 (in the United States)
                    (212) 761-1864 (outside the United States);

                     or

         UBS Securities LLC
         Telephone:(888) 722-9555, ext. 4210 (in the United
                   States)
                   (203) 719-4210 (outside the United 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, and 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.


SANMINA-SCI: S&P Retains Negative CreditWatch on BB- Ratings
------------------------------------------------------------
Standard & Poor's Ratings Services left its 'BB-' ratings on San
Jose, California-based Sanmina-SCI Corp. on CreditWatch with
negative implications because of delayed financial-statement
filings.  The company has filed required statements, but 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 S&P credit
analyst Lucy Patricola.  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.

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 Latin America, it operates in Brazil and Mexico.


TRANSAX INTERNATIONAL: Plans to Sell Brazil Unit to Gestao
----------------------------------------------------------
Transax International Ltd. has signed a Letter of Intent
with 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 12.625 million
Brazilian Reais.

"We are pleased to have been able to reach an agreement with
CBGS in monetizing our Brazilian operations" Stephen Walters,
President & CEO of Transax, commented.  "Transax will continue
to retain certain licensing rights outside of Latin America and
IP rights for the U.S. 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."

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.

                 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.

At Sept. 30, 2006, the company's 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
===========================


ACACIA CDO: Shareholders to Gather for Jan. 29 Final Meeting
------------------------------------------------------------
Acaia CDO, Ltd.'s final shareholders meeting will be at 10:45
a.m. on Jan. 29, 2007, at the company's registered office

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 Ltd. Walker House
           87 Mary Street, George Town
           Grand Cayman, Cayman Islands


CREEP INVESTORS: Final Shareholders Meeting Is on Jan. 29
---------------------------------------------------------
Creep Investors International Cayman's final shareholders
meeting will be at 2:00 p.m. on Jan. 29, 2007, at the company's
registered office.

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


CREP INVESTORS: Sets Final Shareholders Meeting on Jan. 29
----------------------------------------------------------
Crep Investors International's final shareholders meeting will
be at 2:30 p.m. on Jan. 29, 2007, at the Company's registered
office.

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


EASTSIDE HOLDING: Final General Meeting Is Set for Jan. 29
----------------------------------------------------------
Eastside Holding, Inc.'s final shareholders meeting will be at
1:45 p.m. on Jan. 29, 2007, at the company's registered office.

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
           Walkers SPV Limited, Walker House
           87 Mary Street, George Town
           Grand Cayman, Cayman Islands


FINE METALS: Shareholders to Convene for Jan. 29 Final Meeting
--------------------------------------------------------------
Fine Metals Holdings Inc.'s final shareholders meeting will be
at 10:15 a.m. on Jan. 29, 2007, at the company's registered
office.

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 Ltd. Walker House
           87 Mary Street, George Town
           Grand Cayman, Cayman Islands


JOFI SAPPORO: Shareholders to Gather for Jan. 29 Final Meeting
--------------------------------------------------------------
Jofi Sapporo Chuo Ltd.'s final shareholders meeting will be at
10:45 a.m. on Jan. 29, 2007, at the company's registered office

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 Ltd. Walker House
           87 Mary Street, George Town
           Grand Cayman, Cayman Islands


JUBILEE LANE: Final Shareholders Meeting Is Set for Jan. 29
-----------------------------------------------------------
Jubilee Lane, Inc.'s final shareholders meeting will be on
Jan. 29, 2007, at:

           Citco Trustees (Cayman) LTD.
           Windward One, Regatta Office Park
           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:

           CDL Company Ltd.
           P.O. Box 31106 SMB
           Grand Cayman, Cayman Islands


KAIA OFFSHORE: Invites Shareholders for Final Meeting on Jan. 29
----------------------------------------------------------------
Kaia Offshore Partners, Ltd.'s final shareholders meeting will
be at 4:00 p.m. on Jan. 29, 2007, at the company's registered
office.

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
           Walkers SPV Limited, Walker House
           87 Mary Street, George Town
           Grand Cayman, Cayman Island


POST LONG/SHORT: Invites Shareholders for Jan. 29 Final Meeting
---------------------------------------------------------------
Post Long/Short Credit Offshore Fund, Ltd.'s final shareholders
meeting will be at 11:45 a.m. on Jan. 29, 2007, at the company's
registered office.

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
           Walkers SPV Limited, Walker House
           87 Mary Street, George Town
           Grand Cayman, Cayman Islands


POST LONG/SHORT (II): Final General Meeting Is on Jan. 29
---------------------------------------------------------
Post Long/Short Credit Offshore Fund II, Ltd.'s final
shareholders meeting will be at 11:45 a.m. on Jan. 29, 2007, at
the company's registered office.

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
           Walkers SPV Limited, Walker House
           87 Mary Street, George Town
           Grand Cayman, Cayman Islands


RECON ARBITRAGE: Final Shareholders Meeting Is on Jan. 29
---------------------------------------------------------
Recon Arbitrage Fund, Ltd.'s final shareholders meeting will be
at 2:15 p.m. on Jan. 29, 2007, at the company's registered
office.

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
           Walkers SPV Ltd., Walker House
           87 Mary Street, George Town
           Grand Cayman, Cayman Islands


SHINJUKU INVESTORS: Calls Shareholders for Jan. 29 Final Meeting
----------------------------------------------------------------
Shinjuku Investors II, Ltd.'s final shareholders meeting will be
at 3:00 p.m. on Jan. 29, 2007, at the company's registered
office.

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


SRG CAPITAL: Shareholders to Gather for Jan. 29 Final Meeting
-------------------------------------------------------------
SRG Capital Off-Shore's final shareholders meeting will be at
3:30 p.m. on Jan. 29, 2007, at the company's registered office.

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


TOP SPIN: Shareholders to Convene for Jan. 29 Final Meeting
-----------------------------------------------------------
Top Spin Investments Ltd.'s final shareholders meeting will be
on Jan. 29, 2007, at:

           Citco Trustee Ltd. Windward One
           Regatta Office Park, 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:

           CDL Company Ltd.
           P.O. Box 31106 SMB
           Grand Cayman, Cayman Islands


UCOM LATIN: Liquidator to Present Wind Up Accounts on Jan. 29
-------------------------------------------------------------
Ucom Latin America Finance Inc.'s final shareholders meeting
will be at 12:45 p.m. on Jan. 29, 2007, at the company's
registered office.

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
           Walkers SPV Limited, Walker House
           87 Mary Street, George Town
           Grand Cayman, Cayman Islands


UNITED CAPITAL: Final Shareholders Meeting Is Set for Jan. 29
-------------------------------------------------------------
United Capital Management Group's final shareholders meeting
will be on Jan. 29, 2007, at:

           Citco Trustee Ltd., Windward One
           Regatta Office Park, 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:

           CDL Company Ltd.
           P.O. Box 31106 SMB
           Grand Cayman, Cayman Islands




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


REVLON INC: Discloses Result of US$100-Million Rights Offering
--------------------------------------------------------------
Revlon, Inc., disclosed that the subscription period for its
previously announced US$100 million rights offering and related
private placement which it launched on Dec. 18, 2006, expired at
5:00 p.m., New York City time, on Jan. 19, 2007.  The rights
offering is expected to be consummated later this week.

Revlon is pleased to announce that the rights offering was
significantly over-subscribed, with subscribers in the rights
offering, other than MacAndrews & Forbes Holdings Inc. and its
affiliates, seeking to subscribe for approximately 72,130,938
shares of Revlon's Class A common stock, at a price of US$1.05
per share, pursuant to their basic and over-subscription
privileges, which is 34,283,466 shares in excess of the
37,847,472 shares offered to the public in the rights offering.

Commenting on the announcement, Revlon President & CEO David
Kennedy stated, "I am delighted with the broad participation in
the rights offering and by this demonstration of confidence by
not only MacAndrews & Forbes, but also by our other
shareholders.  This rights offering will allow us to strengthen
our balance sheet by reducing debt."

MacAndrews & Forbes, Revlon's majority stockholder, which is
wholly-owned by Ronald O. Perelman, will purchase in a private
placement directly from Revlon a total of 57,390,623 shares of
Revlon's Class A common stock, pursuant to a previously
disclosed Stock Purchase Agreement between Revlon and MacAndrews
& Forbes.  Such shares will be purchased by MacAndrews & Forbes
at the same price of US$1.05 per share and represent the number
of shares that MacAndrews & Forbes would otherwise have been
entitled to subscribe for in the rights offering pursuant to its
basic subscription privilege (which is approximately 60% of the
total shares offered in the rights offering and private
placement combined).

The shares to be sold to MacAndrews & Forbes will be sold in
reliance on Rule 506 under the Securities Act of 1933, as
amended.  The issuance of shares to MacAndrews & Forbes will not
be registered under the Securities Act, and, accordingly, such
shares may not be offered or sold in the U.S. absent
registration or an applicable exemption from registration
requirements.

As a result of these transactions, Revlon will issue a total of
95,238,095 new shares of its Class A common stock, increasing
the number of outstanding shares of Revlon Class A common stock
to 476,688,940 shares and increasing the total number of shares
of common stock outstanding, including Revlon's existing
31,250,000 shares of Class B common stock, to 507,938,940
shares.  Following the completion of these transactions,
MacAndrews & Forbes will beneficially own approximately 58% of
Revlon's Class A common stock and approximately 60% of Revlon's
total common stock outstanding, which shares represent
approximately 74% of the combined voting power of such shares.

In the rights offering, rights holders who exercised their basic
subscription privilege in full were entitled to subscribe for
additional shares of Revlon Class A common stock pursuant to an
over-subscription privilege.  Revlon has indicated that, while
it knows the total number of shares of Revlon Class A common
stock subscribed for in the rights offering pursuant to the
basic and over-subscription privileges, it is in the process of
calculating the over-subscriptions. As soon as practicable after
all over-subscriptions have been calculated and pro rata
allocations and adjustments have been completed, which Revlon
expects to be on or about Feb. 1, 2007, Revlon will deliver to
shareholders who purchased shares in the rights offering the
shares of its Class A common stock purchased.

Revlon also announced that Revlon Consumer Products Corporation,
Revlon's wholly owned operating subsidiary, will use
approximately US$50 million of the proceeds of the rights
offering and related private placement to redeem approximately
US$50 million aggregate principal amount of its 8-5/8% Senior
Subordinated Notes due 2008, at a redemption price of 100% of
the principal amount of such Notes, plus accrued and unpaid
interest up to, but not including, the redemption date.  On or
about Jan. 23, 2007, a copy of the irrevocable notice of
redemption was be mailed to record holders of the Notes being
redeemed by the trustee under the indenture governing the Notes,
who can be reached at:

          U.S. Bank Trust National Association
          60 Livingston Avenue
          St. Paul, Minnesota 55107.

The Notes will be redeemed on or about Feb. 22, 2007.

In addition, Revlon also announced that upon receipt of the
proceeds from the rights offering and related private placement,
Revlon Consumer will use the remainder of such proceeds to repay
approximately US$50 million of indebtedness outstanding under
Revlon Consumer's US$160 million revolving credit facility,
without any permanent reduction in that commitment, after paying
fees and expenses incurred in connection with the rights
offering and related private placement.

Revlon, Inc. (NYSE:REV) -- http://www.revloninc.com/-- is a
worldwide cosmetics, skin care, fragrance, and personal care
products company.  The company's vision is to deliver the
promise of beauty through creating and developing the most
consumer preferred brands.  The company's brands include
Revlon(R), Almay(R), Vital Radiance(R), Ultima(R), Charlie(R),
Flex(R), and Mitchum(R).  The company's Latin American
operations are located in Argentina, Brazil, Chile, Mexico and
Venezuela.

At March 31, 2006, the company's balance sheet showed
US$1,085,400,000 in total assets and US$2,127,500,000 in total
liabilities, resulting in a stockholders' deficiency of
US$1,042,100,000.




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


ECOPETROL: Posts US$3.31 Billion in Oil Exports Last Year
---------------------------------------------------------
Colombian state-run oil firm Ecopetrol said in a statement that
it's exported of crude and other products increased 17% to
US$3.31 billion in 2006, compared with 2005.

Business News Americas relates that Petroecuador attributes the
increase in exports to high international oil prices and
increased crude and derivatives production.

Petroecuador said in a statement, "This is the first time in the
history of exports Ecopetrol has surpassed the US$3.0 billion
barrier."

Ecopetrol told BNamericas that its Castilla Blend crude, which
comes from the Llanos Orientales field, accounted for US$950
million in exports in 2006.

Ecopetrol also posted fuel oil exports of US$954 million this
year, BNamericas states.

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

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


PETROLEOS DE VENEZUELA: Paying Colombian Natives for Pipeline
-------------------------------------------------------------
Venezuela's state-owned firm Petroleos de Venezuela SA told
Xinhua News that it had signed an accord to compensate the
Colombian tribe Wayuu for environmental damage resulting from
the construction of the Venezuela-Colombia gas pipeline.

Xinhua News relates that Petroleos de Venezuela signed the
agreement to allow the construction of the 250-kilometer
pipeline, which costs US$355 million.

According to Xinhua News, the pipeline will connect Venezuela's
Maracaibo to Colombia's Puerto Ballenas.  It will transport 150
million cubic feet per day of gas from Colombia to Venezuela
during its first four years of service.  It could provide
Venezuela with an opportunity to export gas.

Xinhua News underscores that construction of the pipeline
started in Zulia, Venezuela, in November 2006, while in Colombia
it began in December 2006.

"The Colombian government is not interested in defending the
interests of ancestral communities," Wayuu spokesperson Jhon
Jairo Iguaran told the local press.

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.


* COLOMBIA: Completing Sale of 27.5% Stake in Hidroelectrica
------------------------------------------------------------
The Colombian government will conclude the sale of its 27.5%
stake in hydro generation firm Central Hidroelectrica de Caldas
aka Chec in March, La Republica reports.

According to Business News Americas, Chec is among the eight
utilities the Colombian government plans to partially or
entirely sell.  The government has not made a schedule of the
sales available to the media.

Chec could buy the government's 27.5% stake.  Multi-utility EPM,
which owns 56% of Chec, could also acquire half the 27.5% stake,
La Republica relates.

The Caldas government is also willing to sell its 10.2% stake in
Chec, Caldas governor Emilio Echeverri told La Republica.

                        *    *    *

On July 25, 2006, Fitch rated the Republic of Colombia's US$1
billion issue of fixed-rate Global Bonds maturing
Jan. 27, 2017, 'BB'.  The rating is in line with Fitch's long-
term foreign currency rating on Colombia.  Fitch said the Rating
Outlook is Positive.


* COLOMBIA: IFC Fund Helps Banco Davivienda's Buy of Granbanco
--------------------------------------------------------------
The International Finance Corp., the private sector arm of the
World Bank Group, has provided Colombia's Banco Davivienda with
financing to support its acquisition of Granbanco (formerly
Bancafe) and to strengthen its capital base.

IFC's US$240 million financing package consists of a direct
equity investment of US$75 million and US$165 million in
subordinated debt.  The subordinated debt is the first financing
of its kind and includes US$65 million for IFC's account and
US$100 million syndicated to international banks, pension funds,
and insurance companies.  The subordinated debt will be
considered part of Banco Davivienda's capital base.

Banco Davivienda, one of the leading financial institutions in
Colombia, has been an IFC client since 1973.  This new financing
package will bolster and diversify Davivienda's loan portfolio,
creating Colombia's number one bank in mortgage and retail
lending and its number three bank in corporate loans.  IFC's new
equity investment will increase its participation in Davivienda
from four to nine percent.

Efrain Forero, Chairman of Banco Davivienda, and Roberto
Albisetti, IFC's Manager for Colombia, signed IFC's financing
agreement today in Bogot .

"Banco Davivienda is a long-standing IFC client with a
demonstrated commitment to Colombia's economic and social
development, as well as a strong financial track record, clear
vision, and long-term strategic planning," said Roberto
Albisetti at the ceremony.  "IFC's support to Davivienda is
consistent with our strategy in Colombia, as it will support the
expansion and strengthening of a locally owned bank and will
help deepen the country's financial sector,' he added.

Davivienda's Chairman Efrain Forero added, "The long-term
business partnership between Davivienda and IFC has allowed
Davivienda to continue its growing process and expand its
geographical coverage through its diversification strategy,
becoming the leader in retail banking and the third largest bank
in the country."

In 1999 Bancafe, the forerunner of Granbanco, was taken over by
the government.  It has since been completely reshaped through
new management.  In October 2006, Banco Davivienda won the
privatization auction for Bancafe with an open bid for COP2.21
billion or US$918 million.

Banco Davivienda will fund the remainder of the acquisition
price with new equity injections from existing shareholders,
internal liquidity, and senior debt.  This is the first cross-
border syndication of Tier 2 capital for a Colombian bank and
the first syndication of its kind for a multilateral.  It is
also a strong vote of confidence from international investors,
in both Davivienda itself and Colombian financial assets in
general.

With almost US$7 billion in assets post-acquisition, the
enhanced Banco Davivienda will be able to expand its operations
to 132 cities through 236 branches.  It will serve almost 4
million clients.

           IFC's Partnership with Banco Davivienda

IFC's first investment in Banco Davivienda took place in 1973
with an equity investment of 20 percent. In the 1990s,
Davivienda was a founding partner, along with IFC, of
Titulizadora Colombiana, a secondary mortgage securitization
company.  In 2002, IFC provided a partial credit guarantee of up
to UVR (unidad de valor real, a notional currency that reflects
the inflation adjusted Colombian peso) 300 million to facilitate
a domestic subordinated bond issue of UVR 1 billion by Banco
Davivienda.  In 2005, IFC committed to Banco Davivienda a US$35
million standby subordinated loan followed by a US$25 million
equity investment, to support its expansion and consolidation
through the acquisition of Banco Superior.

At the onset of Colombia's financial and mortgage sector crisis
in the late 1990s, Davivienda played a leading role in the
transformation of the Colombian mortgage sector, as the former
savings and mortgage lending institutions (also known as CAVs)
shifted their focus from financing mortgages to origination and
securitization, at the same time transforming themselves into
full-service banks.   Banco Davivienda is also one of the
founding partners of Titulizadora Colombiana, a secondary
mortgage securitization company, along with IFC and others.

                   About Banco Davivienda

Banco Davivienda with Granbanco is the third largest financial
institution in Colombia with assets of US$8.06 billion, deposits
of US$6.02 billion and a net loan portfolio of US$4.9 billion as
of Dec. 31, 2006.  The Bank has an extensive nationwide network
with 540 branches in 52 cities.

Duff & Phelps Colombia assigned Davivienda a long-term, local
currency rating of AAA, a level assigned to entities of the
highest credit quality.  Davivienda also was assigned a short-
term, local currency rating of DP1+, also the highest level.
BRC Investor Services also rates Davivienda's long-term credit-
worthiness AAA and rates its short-term credit-worthiness BRC
1+, the highest rating the company offers.

                      IFC in Colombia

The financial sector continues to be a priority for IFC in
Colombia, with a special focus on finance and microfinance for
housing, as well as the strengthening of local capital markets
and corporate governance. IFC's strategy for Colombia also
focuses on increasing support to sectors that are central to the
country's financial development within the framework of free
trade agreements.  This includes the financing of infrastructure
projects involving public-private partnerships, such as the
expansion of ports, roads, and airports, as well as support to
logistics companies.  IFC also aims to finance Colombian oil and
gas companies, in particular those looking to expand across the
region.

IFC's total portfolio in Colombia as of year-end 2006 was over
US$506 million.  Since Colombia became a member of the IFC in
1956, the Corporation has provided US$1.7 billion to its private
sector, including syndicated loans for a total of US$500
million.

                        *    *    *

On July 25, 2006, Fitch rated the Republic of Colombia's US$1
billion issue of fixed-rate Global Bonds maturing
Jan. 27, 2017, 'BB'.  The rating is in line with Fitch's long-
term foreign currency rating on Colombia.  Fitch said the Rating
Outlook is Positive.




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


COVANTA ENERGY: Moody's Rates US$1.3-Bil. Credit Facility at Ba2
----------------------------------------------------------------
Moody's Investors Service assigned a Ba2 rating to Covanta
Energy Corp.'s new US$1.3 billion senior secured credit facility
and a B1 rating to Covanta Holding Corp.'s US$325 million
convertible debentures.  The Ba2 rating assigned to the new
credit facility is effectively a two-notch upgrade from the B1
rating assigned to Covanta's current first lien credit facility.
With the convertible debenture offering, Moody's has reassigned
the Corporate Family Rating to Covanta Holding Corp. from its
subsidiary, Covanta Energy Corp.  Concurrently, the CFR has been
upgraded to Ba2 from Ba3.

Moody's has also upgraded the ratings of various industrial
revenue bonds guaranteed by Covanta ARC LLC, a subsidiary of
Covanta Energy.  In addition, Moody's affirmed the company's
SGL-1 speculative grade liquidity rating, which has also been
reassigned to Covanta Holding from Covanta Energy.  The outlook
remains stable.

The new credit facility includes a US$680 million dollar term
loan, a US$320 million synthetic letter of credit facility, and
a revolver that has been increased to US$300 million from US$100
million.  Proceeds of the new term loan and the convertible
notes, together with a planned US$125 million equity issuance
and US$170 million in cash, will be used to repay Covanta's
existing US$367 million first lien and US$260 million second
lien term loans, along with US$612 million of debt currently
outstanding at three intermediate holding companies.

The upgrade of the CFR reflects the strengthening of the
company's consolidated balance sheet and significant improvement
in pro forma credit metrics driven by the current proposed
transaction, which is expected to result in a US$235 million
decrease in consolidated debt and an approximate US$50 million
reduction in annual interest expense.

Moody's calculates that the ratio of Funds from Operations to
Interest increases to 4.0x for 2006 on a pro forma basis from an
estimated actual result of 2.8x, while FFO to Debt improves to
13.7% from 10.9%.  These ratios are consistent with a Ba
category rating for a company with Covanta's fundamental
business risk profile.  Moody's notes that the company's
financial performance had already considerably improved in 2006,
with FFO/Debt and FFO/interest ratios increasing from 6.6% and
2.4x, respectively, in 2005.

Further improvements in financial performance are expected as
project debt continues to amortize and the amount of the term
loan is reduced by the 50% cash sweep required by the credit
facility.  The company may pay down the term loan more rapidly
than required if investment opportunities do not arise, though
Moody's expects that the company may seek to re-lever at some
point over the next few years if debt reduction exceeds a
certain level.

The Ba2 rating assigned to the new credit facility further
reflects the reduction in structural subordination achieved
through the expected elimination of intermediate holding company
debt at MSW Energy Holdings LLC, MSW Energy Holdings II LLC and
Covanta ARC LLC and the resulting improvement in loss given
default rates to a range of 30%-50% from a range of 50% to 70%
previously.

In addition, the repayment of the MSW debt, which had a bullet
maturity in 2010, also substantially reduces the company's
exposure to refinancing risk.  The new credit facility will be
secured by a pledge of stock of Covanta's subsidiaries, most of
which are separately financed with non-recourse project debt.
As a result, project debt holders have a prior claim on
virtually all of Covanta's hard assets, primarily consisting of
waste-to-energy facilities.  The convertible debentures will be
unsecured obligations of Covanta Holdings and as such are
structurally subordinated to all of the company's other
indebtedness.

Moody's upgraded these ratings:

Issuer: Covanta Holding Corp.

   -- Corporate Family Rating, Reassigned from Covanta Energy
      Corp., Upgraded to Ba2 from Ba3.

Guarantor: Covanta ARC LLC

    -- Hempstead Industrial Development Agency, NY 5% IRBs
       due 2010, Upgraded to Baa3  from Ba1;

    -- Niagara County Industrial Devel. Agency, NY, Series 2001
       IRBs,Upgraded to Baa2 from Baa3;

    -- Delaware County Industrial Dev. Auth., PA, Series 1997-A
       IRBs, Upgraded to Ba1 (27 - LGD2) from Ba2;

    -- Connecticut Resources Recovery Authority, Ser. A and Ser.
       1992 A IRBs, Upgraded to Ba1 (27 - LGD2) from Ba2.

Moody's assigned these ratings:

Issuer: Covanta Energy Corporation

    -- Senior Secured Bank Credit Facility, Assigned Ba2.

Issuer: Covanta Holding Corporation

    -- Senior Unsecured Conv./Exch. Bond/Debenture, Assigned B1.

Headquartered in Fairfield, New Jersey, Covanta Energy Corp.
-- http://www.covantaenergy.com/-- is a publicly traded holding
company whose subsidiaries develop, own or operate power
generation facilities and water and wastewater facilities in the
United States and abroad.  Covanta has operations in the
Philippines, China, Costa Rica, India, and Bangladesh.


COVANTA ENERGY: S&P Raises Corp. Credit Rating to BB- from B+
-------------------------------------------------------------
Standard & Poor's Ratings Services assigned a 'BB-' corporate
credit rating to Covanta Holding Corp. and a 'B' issue rating to
the company's US$325 million senior unsecured convertible bonds.
At the same time, Standard & Poor's also raised the corporate
credit rating on subsidiary Covanta Energy Co., to 'BB-' from
'B+' and assigned a 'BB-' issue rating, with a '2' recovery
rating (reflecting 80% to 100% of recovery in a default
scenario) to its proposed US$1.3 billion credit facilities
consisting of a US$680 million, first-lien secured term loan,
$320 million in funded LOCs, and US$300 million in revolving
credit facilities.  The outlook remains stable.

As of Sept. 30, 2006, Fairfield, N.J.-based Covanta Holding had
about US$2.6 billion of debt on a consolidated basis.

Covanta Holding also plans to issue about US$125 million in
common equity along with the new financing.  The Covanta Energy
upgrade follows the proposed recapitalization -- proceeds of the
new debt issue will be used to refinance existing indebtedness
of Covanta Holding and its subsidiaries, as well as pay related
fees, premiums, and expenses associated with the debt issuance.

"The stable outlook on Covanta Holding reflects predictable cash
flow from waste disposal and power contracts," said Standard &
Poor's credit analyst Chinelo Chidozie.  "It also reflects the
expectation that consolidated credit metrics should improve over
the medium term, as mandatory amortizations, cash sweeps, and
scheduled step-downs in LOC requirements result in company
deleveraging," she continued.

The possibility of an upgrade is limited, given the company's
level of leverage.  Continued strength in operations and
significant deleveraging would be necessary for the rating to
gain some positive momentum.  Meanwhile, the failure to meet
forecasts, which could result from operating problems or a
weaker pricing environment for power and waste disposal, could
negatively affect the rating.

Headquartered in Fairfield, New Jersey, Covanta Energy Corp.
-- http://www.covantaenergy.com/-- is a publicly traded holding
company whose subsidiaries develop, own or operate power
generation facilities and water and wastewater facilities in the
United States and abroad.  Covanta has operations in the
Philippines, China, Costa Rica, India, and Bangladesh.


COVANTA HOLDING: Moody's Puts B1 Rating on US$325MM Debentures
--------------------------------------------------------------
Moody's Investors Service assigned a Ba2 rating to Covanta
Energy Corp.'s new US$1.3 billion senior secured credit facility
and a B1 rating to Covanta Holding Corp.'s US$325 million
convertible debentures.  The Ba2 rating assigned to the new
credit facility is effectively a two-notch upgrade from the B1
rating assigned to Covanta's current first lien credit facility.
With the convertible debenture offering, Moody's has reassigned
the Corporate Family Rating to Covanta Holding Corp. from its
subsidiary, Covanta Energy Corp.  Concurrently, the CFR has been
upgraded to Ba2 from Ba3.

Moody's has also upgraded the ratings of various industrial
revenue bonds guaranteed by Covanta ARC LLC, a subsidiary of
Covanta Energy.  In addition, Moody's affirmed the company's
SGL-1 speculative grade liquidity rating, which has also been
reassigned to Covanta Holding from Covanta Energy.  The outlook
remains stable.

The new credit facility includes a US$680 million dollar term
loan, a US$320 million synthetic letter of credit facility, and
a revolver that has been increased to US$300 million from US$100
million.  Proceeds of the new term loan and the convertible
notes, together with a planned US$125 million equity issuance
and US$170 million in cash, will be used to repay Covanta's
existing US$367 million first lien and US$260 million second
lien term loans, along with US$612 million of debt currently
outstanding at three intermediate holding companies.

The upgrade of the CFR reflects the strengthening of the
company's consolidated balance sheet and significant improvement
in pro forma credit metrics driven by the current proposed
transaction, which is expected to result in a US$235 million
decrease in consolidated debt and an approximate US$50 million
reduction in annual interest expense.

Moody's calculates that the ratio of Funds from Operations to
Interest increases to 4.0x for 2006 on a pro forma basis from an
estimated actual result of 2.8x, while FFO to Debt improves to
13.7% from 10.9%.  These ratios are consistent with a Ba
category rating for a company with Covanta's fundamental
business risk profile.  Moody's notes that the company's
financial performance had already considerably improved in 2006,
with FFO/Debt and FFO/interest ratios increasing from 6.6% and
2.4x, respectively, in 2005.

Further improvements in financial performance are expected as
project debt continues to amortize and the amount of the term
loan is reduced by the 50% cash sweep required by the credit
facility.  The company may pay down the term loan more rapidly
than required if investment opportunities do not arise, though
Moody's expects that the company may seek to re-lever at some
point over the next few years if debt reduction exceeds a
certain level.

The Ba2 rating assigned to the new credit facility further
reflects the reduction in structural subordination achieved
through the expected elimination of intermediate holding company
debt at MSW Energy Holdings LLC, MSW Energy Holdings II LLC and
Covanta ARC LLC and the resulting improvement in loss given
default rates to a range of 30%-50% from a range of 50% to 70%
previously.

In addition, the repayment of the MSW debt, which had a bullet
maturity in 2010, also substantially reduces the company's
exposure to refinancing risk.  The new credit facility will be
secured by a pledge of stock of Covanta's subsidiaries, most of
which are separately financed with non-recourse project debt.
As a result, project debt holders have a prior claim on
virtually all of Covanta's hard assets, primarily consisting of
waste-to-energy facilities.  The convertible debentures will be
unsecured obligations of Covanta Holdings and as such are
structurally subordinated to all of the company's other
indebtedness.

Moody's upgraded these ratings:

Issuer: Covanta Holding Corp.

   -- Corporate Family Rating, Reassigned from Covanta Energy
      Corp., Upgraded to Ba2 from Ba3.

Guarantor: Covanta ARC LLC

    -- Hempstead Industrial Development Agency, NY 5% IRBs
       due 2010, Upgraded to Baa3  from Ba1;

    -- Niagara County Industrial Devel. Agency, NY, Series 2001
       IRBs,Upgraded to Baa2 from Baa3;

    -- Delaware County Industrial Dev. Auth., PA, Series 1997-A
       IRBs, Upgraded to Ba1 (27 - LGD2) from Ba2;

    -- Connecticut Resources Recovery Authority, Ser. A and Ser.
       1992 A IRBs, Upgraded to Ba1 (27 - LGD2) from Ba2.

Moody's assigned these ratings:

Issuer: Covanta Energy Corporation

    -- Senior Secured Bank Credit Facility, Assigned Ba2.

Issuer: Covanta Holding Corporation

    -- Senior Unsecured Conv./Exch. Bond/Debenture, Assigned B1.


Headquartered in Fairfield, New Jersey, Covanta Energy Corp.
-- http://www.covantaenergy.com/-- is a publicly traded holding
company whose subsidiaries develop, own or operate power
generation facilities and water and wastewater facilities in the
United States and abroad.  Covanta has operations in the
Philippines, China, Costa Rica, India, and Bangladesh.


COVANTA HOLDING: S&P Puts BB- Rating on US$325-Mil. Bonds
---------------------------------------------------------
Standard & Poor's Ratings Services assigned a 'BB-' corporate
credit rating to Covanta Holding Corp. and a 'B' issue rating to
the company's US$325 million senior unsecured convertible bonds.
At the same time, Standard & Poor's also raised the corporate
credit rating on subsidiary Covanta Energy Co., to 'BB-' from
'B+' and assigned a 'BB-' issue rating, with a '2' recovery
rating (reflecting 80% to 100% of recovery in a default
scenario) to its proposed US$1.3 billion credit facilities
consisting of a US$680 million, first-lien secured term loan,
$320 million in funded LOCs, and US$300 million in revolving
credit facilities.  The outlook remains stable.

As of Sept. 30, 2006, Fairfield, N.J.-based Covanta Holding had
about US$2.6 billion of debt on a consolidated basis.

Covanta Holding also plans to issue about US$125 million in
common equity along with the new financing.  The Covanta Energy
upgrade follows the proposed recapitalization -- proceeds of the
new debt issue will be used to refinance existing indebtedness
of Covanta Holding and its subsidiaries, as well as pay related
fees, premiums, and expenses associated with the debt issuance.

"The stable outlook on Covanta Holding reflects predictable cash
flow from waste disposal and power contracts," said Standard &
Poor's credit analyst Chinelo Chidozie.  "It also reflects the
expectation that consolidated credit metrics should improve over
the medium term, as mandatory amortizations, cash sweeps, and
scheduled step-downs in LOC requirements result in company
deleveraging," she continued.

The possibility of an upgrade is limited, given the company's
level of leverage.  Continued strength in operations and
significant deleveraging would be necessary for the rating to
gain some positive momentum.  Meanwhile, the failure to meet
forecasts, which could result from operating problems or a
weaker pricing environment for power and waste disposal, could
negatively affect the rating.

Headquartered in Fairfield, New Jersey, Covanta Energy Corp.
-- http://www.covantaenergy.com/-- is a publicly traded holding
company whose subsidiaries develop, own or operate power
generation facilities and water and wastewater facilities in the
United States and abroad.  Covanta has operations in the
Philippines, China, Costa Rica, India, and Bangladesh.


* COSTA RICA: Recope Launches Bidding for Refinery Upgrade
----------------------------------------------------------
Recope, Costa Rica's state oil refiner, has launched bidding for
a contract to modernize and expand its plant in Limon, Business
News Americas reports.

BNamericas relates that the project is estimated to cost US$160
million, corresponding to the second phase of the plant's stage
one modernization.

According to BNamericas, Recope will accept offers through March
20 for the works, which will take over two years to complete.

BNamericas underscores that the project is aimed at boosting the
plant's production of lead-free gasoline and low-sulfur diesel
to 38,000 barrels per day from 25,000 barrels per day.  The
38,000 barrels per day figure represents 75% of Costa Rica's
consumption.

The Central American Bank for Economic Integration granted a
US$125-million loan for the project, bnameriacs states.

                        *    *    *

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




=======
C U B A
=======


* CUBA: Decreasing Food Purchases in US by US$300 Million
---------------------------------------------------------
US executives told the South Florida Sun-Sentinel that Cuban
officials have informed American suppliers that they will shift
about US$300 million in food purchases away from the US toward
friendlier nations in the coming months.

Sun-Sentinel relates that Cuba has been purchasing food from
suppliers in some 30 US states to try to get those suppliers and
their states to ask the US government to ease the ban it imposed
on Cuba.

However, after six years of buying, the strategy has failed to
ease the embargo, Sun-Sentinel notes, citing Pedro Alvarez,
chief of Cuba's Alimport import agency.

Jay Brickman, vice president of government services for Crowley
Maritime Corp., told Sun-Sentinel that Cuba will likely buy more
rice, soy and wheat from Vietnam, China, Argentina and Brazil
this year.

Sun-Sentinel says that Crowley Maritime ships carry food US
products to Cuba from Broward County's Port Everglades with US
authorization.

US food sales to Cuba were roughly flat at US$317 million
through November 2006, compared with 2005, The US-Cuba Trade and
Economic Council of New York told Sun-Sentinel.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Dec. 18, 2006, Moody's Investors Service said that Cuba's Caa1
foreign-currency issuer rating reflects the debt moratorium that
has been in place for more than 15 years, leading to the
accumulation of principal and interest arrears.

Moody's had assigned these ratings on Cuba:

      -- CC LT Foreign Bank Deposit, Caa2
      -- CC LT Foreign Currency Debt, Caa1
      -- CC ST Foreign Bank Deposit, NP
      -- CC ST Foreign Currency Debt, NP
      -- Issuer Rating, Caa1




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


CARIBE MEDIA: S&P Affirms B Rating on Parent's Merger with CBD
--------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its ratings on ACS
Media LLC, Caribe Media Inc, and CBD Media Holdings LLC,
including their 'B' corporate credit ratings.  These ratings
were removed from CreditWatch where they were placed with
negative implications on Dec. 14, 2006.  The outlooks for all
three entities are stable.

The ratings affirmations follow a review of the planned
combination of Local Insight Media LLC (formerly named Caribe
Acquisition Holdings LLC) and CBD Media LLC, which was announced
in December 2006.  Local Insight Media is the ultimate holding
company of ACS Media and Caribe Media.  The agreement calls for
100% of the membership interests of CBD Media Holdings, the
parent of CBD Media, to be contributed to Local Insight Media.
CBD Media will be operated as a subsidiary of Local Insight
Media.  Spectrum Equity Investors currently owns about 95% of
CBD Media Holdings.  Local Insight Media is currently owned by
Welsh, Carson, Anderson & Stowe or WCAS.  Upon completion of
the transaction, which is expected in the 2007 first quarter,
WCAS will own a majority of Local Insight Media, with Spectrum
holding a significant minority  position.  Pro forma revenues
for the combined company are about US$225 million.

Local Insight Media makes it easy to reach out and touch someone
in Alaska or the Caribbean.  The company owns ACS Media, the
leading publisher of printed and electronic advertising phone
directories in Alaska.  ACS Media publishes 10 directories
covering 95% of the state's population, including Anchorage,
Fairbanks, and Juneau.  It also offers searchable directories
online through acsyellowpages.com and website Alaska.com.  Local
Insight Media also owns 60% of Axesa Servicios de Informacion,
publisher of yellow and white page directories in Puerto Rico.
The company owns directories in the Dominican Republic under the
Paginas Amarillas name through Caribe Servicios de Informaci¢n
Dominicana.




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


PETROECUADOR: Protests Result to Production Cut to 172,000 BPD
--------------------------------------------------------------
Ecuador's state-owned oil firm Petroecuador said in a statement
that protests in Orellana decreased its production to 172,000
barrels per day since the start of 2007.

Business News Americas relates that Petroecuador lost 54,000
barrels of production equal to US$2.7 million at the time of the
statement's publication.

According to BNamericas, residents from the Dayuma and Canon de
los Monos sectors blocked roads and bridges, preventing workers
and technicians from Petroproduccion, Petroecuador's subsidiary,
from entering the sites.

Petroecuador said in a statement that Petroproduccion recovered
18,000 barrels per day production after reaching accords with
the local residents.

However, Petroproduccion is still suffering from theft of high-
voltage cables that provide energy to the wells, as well as
occasional destruction to electrical equipment and
installations, BNamericas states.

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


* ECUADOR: Foreign Minister Denies Mercosur Membership
------------------------------------------------------
Ecuador's Foreign Minister Maria Fernanda Espinosa has denied to
Prensa Latina the nation's incorporation into Mercosur, saying
that the country will instead focus on strengthening the
Community of Andean Nations or CAN.

Mercosur is composed of Argentina, Brazil, Paraguay, Uruguay and
Venezuela, while CAN is composed of Bolivia, Colombia and Peru.

Prensa Latina relates that CAN has been undergoing a serious
crisis since Venezuela left in 2005 because of Colombia and
Peru's free trade accord with the US.

Minister Espinosa told reporters, "We are going to give all our
energy to rebuilding the Andean Community as a platform to build
up the South American Union."

According to Prensa Latina, Minister Espinosa favored using in a
better way the role of Ecuador as an associated state of
Mercosur.

"Our alliance in Mercosur is very important, but our main
strategy will obviously be the process to reshape and boost
CAN," Minister Espinosa told Prensa Latina.

                        *    *    *

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

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




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


MILLICOM INT: Inks Pact with China Mobile to Sell Paktel Stake
--------------------------------------------------------------
Millicom International Cellular S.A. has signed an agreement for
the sale of its 88.86% shareholding in Paktel Limited to China
Mobile Communications Corp.  The transaction implies an
enterprise valuation for Paktel Limited of US$460 million.  The
total cash consideration payable to Millicom as a result of the
transaction (including the repayment of intercompany debt) is
approximately US$284 million.  Completion of the transaction is
subject to certain regulatory approvals and procedures.  If
approvals are obtained, completion is expected to occur in late
February 2007.

Commenting on the transaction, Marc Beuls, President and Chief
Executive Officer of Millicom, said, "We are pleased to announce
the sale of Paktel to China Mobile following strong interest
from a number of parties during the sale process.  The implied
enterprise value of US$460 million for Paktel reflects fair
value for the business.  Completion of the transaction is
dependent on regulatory approval.  The sale of Paktel allows
Millicom to focus on the 16 markets where we have already
established strong market positions and, with penetration rates
rising rapidly, the prospects in these businesses are good."

Millicom International Cellular S.A. -- http://www.millicom.com/
-- is a global telecommunications investor with cellular
operations in Asia, Latin America and Africa.  It currently has
cellular operations and licenses in 16 countries.  The Group's
cellular operations have a combined population under license of
approximately 391 million people.

The Central America Cluster comprises Millicom's operations in
El Salvador, Guatemala and Honduras.  The population under
license in Central America at December 2005 is 26.4 million.
The South America Cluster comprises Millicom's operations in
Bolivia and Paraguay.  The population under license in South
America at December 2005 is 15.2 million.

                        *    *    *

Millicom International's 10% senior notes due 2013 carry Moody's
B3 rating and Standard & Poor's B- rating.

                        *    *    *

Standard & Poor's Ratings Services affirmed on July 4, 2006, its
'B+' long-term corporate credit and 'B-' senior unsecured debt
ratings on Millicom International Cellular S.A.  The ratings
were removed from CreditWatch with developing implications,
where they had been placed on Jan. 20, 2006, on the initiation
of a strategic review that could have led to a transaction such
as the sale of all or part of the company.  S&P said the outlook
is stable.




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


BRITISH AIRWAYS: Cabin Crew Workers to Stage a Three-Day Strike
---------------------------------------------------------------
The Transport & General Workers Union, representing 11,000 cabin
crew employees of British Airways Plc, will carry out a
three-day strike starting Jan. 29 after talks over sick leave,
pay and staffing issues failed to reach an agreement, Tracy
Alloway and Stuart Wallace write for Bloomberg News.

According to Andrew Murray, T&G spokesman, two more three-day
strikes are expected to happen in February unless the dispute is
resolved.  He added that there are no further talks scheduled
between the airline and the union.

"Our members are fed up with being bullied into coming to work
when sick and with division caused by poverty levels," Jack
Dromey, T&G deputy general secretary, said.

BA was disappointed by the union's move as industrial action
would cause "massive disruption" for its customers.  The carrier
is now allowing passengers who had booked flights between
Jan. 29 and Feb. 16 to change the dates of their trips.

The airline is still hoping for a negotiated settlement although
the union is refusing another dialogue, BA spokesman Paul
Marston was quoted by Bloomberg as saying.

Mr. Marston revealed that the union is seeking a unified pay
scale that would cost BA up to GBP50 million pounds a year.

As previously reported in the TCR-Europe on Jan. 17, 96% of T&G
union's cabin crew members, who are employed at BA, voted in
favor of a strike action over the airline's proposed deal that
would narrow a GBP2.1-billion pension deficit.

Headquartered in West Drayton, United Kingdom, British Airways
Plc -- http://www.ba.com/-- operates of international and
domestic scheduled and charter air services for the carriage of
passengers, freight and mail, and provides of ancillary
services.  The British Airways group consists of British Airways
Plc and a number of subsidiary companies including in particular
British Airways Holidays Ltd. and British Airways Travel
Shops Ltd.  BA has offices in India and Guatemala.

                        *     *     *

British Airways' 7-1/4% senior unsubordinated notes due 2016 and
10-7/8% notes due 2008 carry Moody's Investors Service's Ba2
ratings and Standard & Poor's BB- ratings.


* GUATEMALA: President May Okay Hydrocarbons Exploration Tender
---------------------------------------------------------------
Jorge Silva, the hydrocarbons director of Guatemala's energy and
mines ministry, told Business News Americas that President Oscar
Berger could ratify the launch of bidding for new hydrocarbons
exploration and production in Peten department in the coming
days.

The contracts cover blocks A1, A4 and A9.  The bidding process
would take up to four months to complete, BNamericas notes,
citing Mr. Silva.

BNamericas relates that A1 takes up 102,000 hectares with
reserves estimated up to 765 million barrels and A9 covers
107,000 hectares with reserves estimated at up to 1.07 billion
barrels.

BNamericas did not disclose any information about A4.

The exploration and production contracts would run 25 years,
BNamericas states.

                        *    *    *

Fitch Ratings assigned these ratings on Guatemala:

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

Fitch also rated Guatemala's senior unsecured bonds:

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




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


GOODYEAR TIRE: Relocates Sales Office After Fire
------------------------------------------------
Damien Satterthwaite -- Goodyear Tire & Rubber Co.'s consumer
tire manager in Jamaica -- told the Jamaica Observer that the
company has relocated its administrative and sales office to 248
Spanish Town Road after a fire destroyed its distribution center
at 230 Spanish Town Road.

As reported in the Troubled Company Reporter-Latin America on
Jan. 19, 2007, a fire at Goodyear Tire & Rubber Co. stopped
operations at its distribution center in Kingston, Jamaica.
Investigators had not yet determined the cause of the fire.
Cynthia Jonas, manager of Goodyear Tire's distribution center,
said that the losses resulting from the fire had not been
ascertained.

Mr. Satterthwaite told The Observer, "We are physically in the
same vicinity (of the tire distribution center destroyed by
fire) and our distribution center for the time being continues
to be 230 Spanish Town Road."

Goodyear Tire was also in the process of locating a new
warehouse in the near future, The Observer says, citing Mr.
Satterthwaite.

Mr. Satterthwaite told The Observer that Goodyear Tire has
several hundred orders for tires.  Even though the warehouse has
been destroyed the company has continued delivery.  Mr.
Satterthwaite said, "We have products that we are delivering to
a couple of persons including today, such as the Jamaica Urban
Transit Company."

"We believe that we will be able to meet the demands.  Because
before the fire our dealers had stock, so there should not be
any major disruption in our supply to consumers," Mr.
Satterthwaite commented to The Observer.

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.




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


AMR CORP: Board OKs 2007 Annual Incentive Plan for American Air
---------------------------------------------------------------
The compensation committee of the board of directors of AMR
Corp. has approved the company's 2007 annual incentive plan
for American Airlines Inc.

All U.S. based employees of American Airlines are eligible to
participate in the AIP (including AMR's executive officers).
The AIP is American Airline's annual bonus plan and provides for
the payment of awards in the event financial or customer service
metrics are satisfied.

Specifically, the compensation committee approved the amendment
and restatement of these compensation programs for officers
(including AMR's executive officers) and certain key employees
of American Airlines:

   a)  The 2005-2007 Performance Share Plan for Officers and Key
       Employees, and the related 2005-2007 Performance Share
       Agreements; and

   b)  The 2005 Deferred Share Award Agreements.

The amendment and restatement of the 2005-2007 Performance Share
Plan will result in a distribution of cash and stock upon the
attainment of performance criteria.  The anticipated
distribution date is April 2008.

The amendment and restatement of the 2005 Deferred Share
Agreements will result in a distribution of stock upon the
recipient being employed by a wholly owned subsidiary of AMR on
the vesting date.  The anticipated distribution date is July
2008.

The compensation committee also made certain grants to AMR's
executive officers under the 2005-2007 Performance Share Plan
and the 2005 Deferred Share Agreements.  These grants replaced
unit grants under earlier plans.

AMR Corp. operates primarily in the airline industry through its
principal subsidiary American Airlines, Inc.  During the year
ended Dec. 31, 2005, American provided scheduled jet service to
approximately 150 destinations throughout North America, the
Caribbean, Latin America, Europe and Asia.

AMR Eagle Holding Corporation, a wholly owned subsidiary of AMR,
owns two regional airlines: American Eagle Airlines, Inc. and
Executive Airlines, Inc. (Executive) (collectively, the American
Eagle carriers).  The American Eagle carriers provide connecting
service from eight of American's high-traffic cities to smaller
markets throughout the United States, Canada, Mexico and the
Caribbean.  American also contracts with three independently
owned regional airlines, which does business as the American
Connection.

                        *    *    *

In June 2003, Moody's Investors Service placed AMR Corp.'s
senior unsecured debt and long-term corporate family ratings at
Caa2 and B3 respectively.  Those ratings were placed with a
stable outlook.  Moody's also assigned the company's probability
of default rating at B3 on Sept. 26, 2006.

AMR's senior unsecured debt and long-term issuer default rating
carry Fitch's CCC and B- ratings respectively.

On Feb. 22, 2006, Standard & Poor's placed B rating on the
company's long-term local and foreign issuer credits.


AMR CORPORATION: Earns US$17 Million in Fourth Quarter of 2006
--------------------------------------------------------------
AMR Corp. reported a US$17 million net profit for the fourth
quarter of 2006.  The current quarter results compare to a net
loss of US$600 million in the fourth quarter of 2005.  Excluding
the US$191 million net charge for special items, AMR's fourth
quarter 2005 net loss was US$409 million.

For 2006, AMR posted a US$231 million net profit compared to a
net loss of US$857 million in 2005.  AMR's 2005 loss would have
been US$677 million excluding a US$180 million net charge for
special items.

"By producing a fourth quarter and full year profit for the
first time since 2000, the people of American Airlines made 2006
a proud milestone in our ongoing turnaround," said AMR Chairman
and CEO Gerard Arpey.  "We executed on every facet of our
Turnaround Plan - from bolstering our financial and competitive
positions to investing in our product and strengthening our
employee pension plans.  With the combined effort of the entire
American Airlines team, we expect to build on our momentum in
2007."

Arpey noted significant improvement to the company's cash
balance, a notable increase in the funding status of its defined
benefit pension plans, and continued debt reduction as examples
of AMR's strong momentum in 2006.

AMR contributed US$323 million to its defined benefit pension
plans in 2006, including a US$100 million contribution in the
fourth quarter that went beyond the company's 2006 funding
requirement of US$223 million.  The company's 2006 pension
contributions, along with strong pension fund asset returns,
helped to increase the assets held in trust for its defined
benefit pension plans by US$800 million to US$8.5 billion at the
end of 2006 and also helped to improve the accumulated benefit
obligation funding status of AMR's pension plans to 85%, up from
78% at the end of 2005.

AMR ended 2006 with US$5.2 billion in cash and short-term
investments, including a restricted balance of US$468 million,
compared to a balance of US$4.3 billion in cash and short-term
investments at the end of 2005, including a restricted balance
of US$510 million.

The company reduced total debt, which includes the principal
amount of airport facility tax-exempt bonds and the present
value of aircraft operating lease obligations, to US$18.4
billion at the end of the fourth quarter of 2006, compared to
US$20.1 billion a year earlier.  In addition to US$1.2 billion
in scheduled principal payments that AMR made in 2006, the
company purchased US$190 million of its outstanding debt and
lease obligations during the year.  AMR reduced net debt, which
is defined as total debt less unrestricted cash and short-term
investments, from US$16.3 billion at the end of 2005 to US$13.6
billion at the end of 2006.

AMR reported fourth quarter consolidated revenues of
approximately US$5.4 billion, an increase of 4.4% year over
year.  Consolidated 2006 revenues totaled US$22.6 billion, an
8.9% increase over 2005 and a nearly 30% increase over the
company's US$17.4 billion in total revenue in 2003, the year AMR
launched its Turnaround Plan.

In the fourth quarter, other revenues, including sales from
such sources as confirmed flight changes, buy-on-board food
services, and third-party maintenance work, increased
11.7% year over year to US$347 million.

American's mainline load factor -- or the percentage of total
seats filled -- was a record 78.8% during the fourth quarter,
compared to 77.9% in the final quarter of 2005, and yield, which
represents average fares, increased 4.0% compared to the fourth
quarter of 2005.  American's passenger revenue per available
seat mile (unit revenue) for the fourth quarter increased 5.1%
compared to the year-ago quarter.

For the full year, unit revenue improved 8.8% versus 2005.
American's mainline cost per available seat mile (unit cost)
in the fourth quarter was down 5.6% year over year.  Excluding
fuel and special items, mainline unit cost for the fourth
quarter increased 0.5% year over year.  For the full year,
mainline unit costs increased 3.8% from 2005, however, excluding
fuel and special items, these costs increased by 1.3%.

During the fourth quarter, AMR paid US$120 million less for fuel
than it would have paid at prices prevailing from the prior-
year period.  The company estimates that its Fuel Smart
conservation program helps American save more than 90 million
gallons of fuel annually.

"Our execution under all four tenets of our Turnaround Plan
has improved our financial performance and allowed us to
continue to meet our obligations to shareholders, lenders,
employees and customers," Arpey said.  "We have a lot of work
left to do, but the track we are on today is the right track to
position our company for long-term success."

                 4.5% Senior Notes Become
               Convertible to Common Stock

As reported in the Troubled Company Reporter on Jan. 15, 2007,
AMR Corp.'s 4.5% senior convertible notes due 2024 have become
convertible into shares of AMR common stock.

The Notes have become convertible because the sale price of
AMR's common stock for at least 20 trading days in a period of
30 consecutive trading days ending on Dec. 31, 2006, was greater
than 120% of the conversion price per share of AMR common stock
on the last trading day of year.

AMR's shares rose 29% in the fourth quarter.

AMR Corp. operates primarily in the airline industry through its
principal subsidiary American Airlines, Inc.  During the year
ended Dec. 31, 2005, American provided scheduled jet service to
approximately 150 destinations throughout North America, the
Caribbean, Latin America, Europe and Asia.  AMR Eagle Holding
Corporation, a wholly owned subsidiary of AMR, owns two
regional airlines: American Eagle Airlines, Inc. and Executive
Airlines, Inc. (Executive) (collectively, the American Eagle
carriers).  The American Eagle carriers provide connecting
service from eight of American's high-traffic cities to smaller
markets throughout the United States, Canada, Mexico and the
Caribbean.  American also contracts with three independently
owned regional airlines, which does business as the American
Connection.

                        *    *    *

In June 2003, Moody's Investors Service placed AMR Corp.'s
senior unsecured debt and long-term corporate family ratings at
Caa2 and B3 respectively.  Those ratings were placed with a
stable outlook.  Moody's also assigned the company's probability
of default rating at B3 on Sept. 26, 2006.

AMR's senior unsecured debt and long-term issuer default rating
carry Fitch's CCC and B- ratings respectively.

On Feb. 22, 2006, Standard & Poor's placed B rating on the
company's long-term local and foreign issuer credits.


COREL CORP: Earns US$9.4 Million in Fourth Quarter Ended Nov. 30
----------------------------------------------------------------
Corel Corp. reported financial results for its fourth quarter
and year ended Nov. 30, 2006.  Revenues in the fourth quarter of
fiscal 2006 were US$47.4 million, an increase of 4% over
revenues of US$45.6 million in the fourth quarter fiscal 2005.

GAAP net income in the fourth quarter of fiscal 2006 was
US$9.4 million compared to a GAAP net loss of US$3.4 million in
the fourth quarter of fiscal 2005.

Non-GAAP adjusted net income for the fourth quarter fiscal 2006
was US$13.1 million, an increase of 90% compared to non-GAAP
adjusted net income for the fourth quarter of fiscal 2005 of
US$6.9 million.  Non-GAAP adjusted EBITDA increased 11% in the
fourth quarter to US$14.7 million compared to US$13.3 million in
the fourth quarter of fiscal 2005.

In fiscal year 2006, Corel achieved revenue of US$177.2 million,
an increase of 8%, compared to US$164.0 million in fiscal 2005.
GAAP net income for the year was US$9.3 million compared to a
GAAP net loss of US$8.8 million for fiscal year 2005.

For the full-year 2006, Non-GAAP adjusted net income was
US$37.6 million, an increase of 31% from the previous year of
US$28.6 million.  Non-GAAP adjusted EBITDA for 2006 was US$55.2
million, a 13% increase over 2005 non-GAAP adjusted EBITDA of
US$49.0 million.

"Corel closed a busy 2006 with a solid fourth quarter,
delivering strong results on both revenue and earnings and
continuing to execute against all facets of our strategy," said
David Dobson, Corel's CEO.  "As we enter 2007, we are very
excited about the acquisition of Intervideo, which we closed in
December.  This combination creates the broadest digital media
portfolio in the industry, and will further our core strategy of
expanding our partner ecosystem, delivering new products and
growing in new and emerging markets.  We expect that over the
course of 2007, we will improve Intervideo's gross margins,
realize significant cost synergies between the two
organizations, and drive increased value to our customers,
partners and shareholders."

                     Financial Guidance

There are several items related to the acquisition that will
impact revenue and earnings for the first quarter and full year
of 2007.  These are as follows:

   -- The acquisition closed on Dec. 12, 2006, so Corel will not
      recognize approximately two weeks of revenue from
      Intervideo in the first quarter.  In addition, revenue
      from OEM customers is primarily reported to Intervideo
      after the end of each calendar quarter.  Corel is not able
      to recognize revenue that is reported from OEM customers
      for products sold prior to the close of the acquisition
      that traditionally would have been reported in
      Intervideo's first quarter results.  Beginning in our
      second quarter, the company will be able to report the
      full Intervideo OEM revenue.  The impact of these items on
      revenue will be approximately US$15 million in the first
      quarter.  The impact on earnings for both the first
      quarter and fiscal year 2007 will be approximately US$7
      million.

   -- Also, the company expects that it will no longer recognize
      approximately US$15 million of revenue that was annually
      sold by Intervideo at cost.  There will be no impact on
      earnings as a result of this change.

   -- The company expects to rationalize approximately US$5
      million to US$7 million of unprofitable revenue in fiscal
      2007.

   -- The company expects to take a one-time charge of
      approximately US$8.5 million to in-process research and
      development and a US$2 million restructuring and
      transition charge in the first quarter.

The combined impact of these changes on revenue is expected to
be approximately US$20 million in the first quarter and US$35
million to US$37 million in fiscal year 2007.

             First Quarter Fiscal 2007 Guidance

Corel provided guidance for the first quarter ending
Feb. 28, 2007.  The Company currently expects:

   * Revenue in the range of US$51 million to US$53 million.

   * GAAP net loss of US$18 million to US$20 million and a non-
     GAAP adjusted net loss of US$1 million to a non-GAAP
     adjusted net income of US$1 million.

                   Fiscal 2007 Guidance

Corel provided guidance for the year ending Nov. 30, 2007.  The
Company currently expects:

   * Revenue in the range of US$245 million to US$255 million

   * GAAP net loss of US$10.5 million to US$13.5 million and
     non-GAAP adjusted net income of US$33 million to US$36
     million.

                     About Corel Corp.

Ottawa, Ontario-based Corel Corp. (NASDAQ: CREL) (TSX: CRE)
-- http://www.corel.com/-- is a packaged software company with
an estimated installed base of over 40 million users.  The
Company provides productivity, graphics and digital imaging
software.  Its products are sold in over 75 countries through a
scalable distribution platform comprised of original equipment
manufacturers, Corel's international websites, and a global
network of resellers and retailers.  The Company's product
portfolio features CorelDRAW(R) Graphics Suite, Corel(R)
WordPerfect(R) Office, WinZip(R), Corel(R) Paint Shop(R) Pro,
and Corel Painter(TM).

The company has operations in Germany, Italy, the United
Kingdom, Australia, Japan, Korea, Brazil, and Mexico, among
others.

                        *    *    *

As reported in the Troubled Company Reporter on Nov. 7, 2006,
Standard & Poor's Ratings Services affirmed its 'B' long-term
corporate credit and senior secured debt ratings on Canada-based
packaged software company, Corel Corp.


DELTA AIR: Says Disclosure Statement Has Adequate Information
-------------------------------------------------------------
Delta Air Lines, Inc. and its debtor-affiliates ask the United
States Bankruptcy Court for the Southern District of New York to
approve the Disclosure Statement explaining their Joint Plan of
Reorganization, filed on December 19, 2006, as containing
adequate information within the meaning of Section 1125 of the
Bankruptcy Code.

Section 1125 provides that plan proponents must afford holders
of impaired claims with adequate information regarding a
debtor's proposed plan.  Thus, a debtor's disclosure statement
must provide information that is reasonably practicable to
permit an informed judgment by impaired creditors entitled to
vote on the plan.

The Plan provides for the separate deemed substantive
consolidation of each of the estates of the Comair Debtors and
the estates of the Delta Debtors for purposes of voting,
confirmation and distribution.

Marshall S. Huebner, Esq., at Davis Polk & Wardwell, in New
York, contends that the Disclosure Statement accompanying the
Plan addresses the salient types of information that provide
holders of impaired claims entitled to vote to accept or reject
the Plan with adequate information to allow them to make an
informed judgment about the Plan.

Mr. Huebner tells the Court that the Disclosure Statement
includes a summary of the Plan, together with a discussion of,
among other things:

   (a) the operation of the Debtors' businesses during the
       course of the their Chapter 11 cases;

   (b) certain events preceding the commencement of the Debtors'
       Chapter 11 cases;

   (c) the Debtors' indebtedness;

   (d) the range of recovery estimates for creditors;

   (e) risk factors affecting the Plan;

   (f) the administration of the Debtors' estates following
       confirmation of the Plan;

   (g) tax consequences of the Plan;

   (h) information regarding claims against the estates;

   (i) a liquidation analysis of the Debtors;

   (j) the Debtors' valuation as a going-concern enterprise; and

   (k) the Debtors' financial projections.

                      About Delta Air

Headquartered in Atlanta, Georgia, Delta Air Lines (OTC: DALRQ)
-- http://www.delta.com/-- is the world's second-largest
airline in terms of passengers carried and the leading U.S.
carrier across the Atlantic, offering daily flights to 502
destinations in 88 countries on Delta, Song, Delta Shuttle, the
Delta Connection carriers and its worldwide partners.  The
Company and 18 affiliates filed for chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923).
Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents
the Debtors in their restructuring efforts.  Timothy R. Coleman
at The Blackstone Group L.P. provides the Debtors with financial
advice.  Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at
Akin Gump Strauss Hauer & Feld LLP, provide the Official
Committee of Unsecured Creditors with legal advice.  John
McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James
S. Feltman at Mesirow Financial Consulting, LLC, serve as the
Committee's financial advisors.  As of June 30, 2005, the
company's balance sheet showed US$21.5 billion in assets and
US$28.5 billion in liabilities.  (Delta Air Lines Bankruptcy
News, Issue No. 56; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


DELTA AIR: Wants Court Nod on Solicitation & Tabulation Process
---------------------------------------------------------------
Delta Air Lines, Inc., and its debtor-affiliates ask the United
States Bankruptcy Court for the Southern District of New York
to:

   (i) approve the form and contents of their proposed
       solicitation package relating to their Joint Plan of
       Reorganization and accompanying Disclosure Statement,
       both filed on December 19, 2006, and the procedures for
       distribution thereof;

  (ii) approve the forms of ballots and establish procedures for
       voting on the Plan; and

(iii) schedule a hearing, and establish notice and objection
       procedures in respect of confirmation of the Plan.

Pursuant to Rule 3017(c) of the Federal Rules of Bankruptcy
Procedure, the Debtors ask the Court to schedule the hearing to
consider the confirmation of the Plan on April 25, 2007, at
2:00 p.m., prevailing Eastern Time.

The proposed Confirmation Hearing date is approximately 75 days
after the Debtors' anticipated date for the entry of an order
approving the Disclosure Statement.

Upon approval of the Disclosure Statement, the Debtors propose
to provide all creditors and equity security holders with the
distribution of a Confirmation Hearing Notice, setting forth:

   (a) the date of the Court's approval of their Disclosure
       Statement;

   (b) the record date for voting on the Plan;

   (c) the date established by which Bankruptcy Services, LLC,
       the Debtors' solicitation agent, must receive all ballots
       voting to accept or reject the Plan;

   (d) the time fixed for filing objections to confirmation of
       the Plan; and

   (e) the time, date and place for the Confirmation Hearing.

The Debtors also propose to publish the Confirmation Hearing
Notice in The Wall Street Journal (National Edition), The
Atlanta-Journal-Constitution, The Salt Lake Tribune, The
Cincinnati Enquirer, and on http://www.deltadocket.com/

The Debtors will provide the Publication Notice in not less than
25 days before the deadline to file objections to the Plan
Confirmation.

The Debtors ask the Court to deem their proposed procedures as
adequate notice of the Confirmation Hearing.

                Plan Confirmation Objection

In accordance with Rules 2002(b) and 2002(d), and to permit them
adequate time to respond to objections prior to the Confirmation
Hearing, the Debtors propose to establish April 9, 2007 as the
deadline for filing written objections to the confirmation of
the Plan.

Plan Confirmation Objections must specify in detail:

   (i) the name and address of the objector,

  (ii) all grounds for the objection, and

(iii) the amount of the claims or other interests held by the
       objector.

                   Solicitation Package

Upon Court approval of the Disclosure Statement, the Debtors
intend to distribute solicitation packages to all claimholders
in the classes allowed to vote on the Plan.

Under the Plan, these classes are entitled to vote:

      Class               Description
      -----               -----------
      Delta Class 4       General Unsecured Claims
      Delta Class 5       Non-Convenience Class Retiree Claims
      Delta Class 6       Convenience Class Claims
      Comair Class 4      General Unsecured Claims
      Comair Class 5      Convenience Class Claims

Each Solicitation Package will include copies of:

    -- a cover letter describing the contents of the
       Solicitation Package, the contents of any enclosed CD-ROM
       and instructions for how hard copies of any materials
       provided on CD-ROM can be obtained at no charge;

    -- the Court's order approving, inter alia, the Disclosure
       Statement;

    -- a written notice regarding the Confirmation Hearing Date;

    -- a ballot and a pre-addressed postage paid envelope.  A
       full-text copy of the Ballots is available for free at:
       http://ResearchArchives.com/t/s?18d2

    -- the Disclosure Statement with the Plan; and

    -- any other materials as the Court may direct, including,
       but not limited to, any letters from the various official
       committees recommending acceptance of the Plan.

The Debtors expect to complete distribution of the Solicitation
Packages no later than 13 days after Court approval of the
Disclosure Statement.

               Notices of Non-Voting Status

Under the Plan, claims in these classes are designated as
unimpaired, and are conclusively presumed to accept the Plan:

      Class               Description
      -----               -----------
      Delta Class 1       Other Priority Claims
      Delta Class 2       Secured Aircraft Claims
      Delta Class 3       Other Secured Claims
      Delta Class 7b      Interests in the Delta Subsidiary
      Comair Class 1      Other Priority Claims
      Comair Class 2      Secured Aircraft Claims
      Comair Class 3      Other Secured Claims
      Comair Class 6      Interests in the Comair Debtors

Accordingly, the Debtors propose to send to holders of
Unimpaired Claims a notice informing them that their claims are
unimpaired and sets forth the manner in which a copy of the Plan
and Disclosure Statement may be obtained at no charge.

On the other hand, these Classes are not receiving distributions
under the Plan, and are conclusively presumed to reject the Plan
pursuant to Section 1126(g):

      Class               Description
      -----               -----------
      Delta Class 7a      Interests in Delta
      Delta Class 8       Securities Litigation Claims
      Comair Class 7      Securities Litigation Claims

The Debtors propose to mail to the claimholders of the classes
presumed to reject the Plan a Notice of Non-Voting Status With
Respect to Impaired Classes Deemed to Reject the Plan.

The Debtors also propose to send a Notice of Non-Voting Status
With Respect to Impaired Classes Deemed to Reject the Plan to
the holders of Delta's publicly traded stock as reflected in the
records maintained by the Debtors' transfer agents and the
trustee of any debt securities in non-voting classes as of the
close of business on the Voting Record Date.

The Debtors recognize that the records maintained by those
transfer agents or trustees reflect the brokers, dealers,
commercial banks, trust companies or other nominees through
which the beneficial owners hold the Non-Voting Securities.

Accordingly, the Debtors ask the Court to:

   (i) authorize them to provide the Non-Voting Nominees with
       sufficient copies of the Notice of Non-Voting Status With
       Respect to Impaired Classes Deemed to Reject the Plan to
       forward to the beneficial owners of the Non-Voting
       Securities; and

  (ii) direct the Non-Voting Nominees to forward the Notice of
       Non-Voting Status With Respect to Impaired Classes Deemed
       to Reject the Plan or copies of it to the beneficial
       owners of the Non-Voting Securities within 5 business
       days of the receipt by that Non-Voting Nominees of the
       Notice.

The Debtors seek the Court's authority to reimburse the Non-
Voting Nominees for the reasonable and customary out-of-pocket
expenses without further Court order in connection with the
distribution of the Notice of Non-Voting Status With Respect to
Impaired Classes Deemed to Reject the Plan.

A full-text copy of the Notices of Non-Voting Status With
Respect to Impaired Classes Deemed to Accept or Deemed to Reject
the Plan is available for free at
http://ResearchArchives.com/t/s?18cf

The Debtors also ask the Court to determine that they are not
required to distribute Solicitation Packages to:

     * parties to executory contracts who do not hold either
       allowed claims, or filed or scheduled claims listed as
       contingent, unliquidated or disputed; or

     * holders of claims against the Debtors that have not been
       classified in the Plan pursuant to Section 1123(a)(1).

Mr. Huebner asserts that the Debtors have shown good cause for
implementing the proposed notice and service procedures and that
the notice and service satisfy the requirements of Bankruptcy
Rule 3017(d).

                    Voting Record Date

In accordance with Rules 3017(d) and 3018(a), the record date
for non-securities claims is often the date an order approving
the disclosure statement is entered.  The record holders of a
debtor's public securities, however, generally require advance
notice to enable those responsible for assembling ownership
lists of that debtor's public securities to compile a list of
holders as of a date certain.

Accurate lists often cannot be prepared retroactively as to
ownership on a prior date, Mr. Huebner informs the Court.

Accordingly, the Debtors ask the Court to establish
Feb. 1, 2007, as the record date for purposes of determining:

   (a) the creditors who are entitled to vote on the Plan;

   (b) in the case of the Aircraft Claims, the holders of
       aircraft securities entitled to instruct the applicable
       Aircraft Trustees as to how to vote their Aircraft Claims
       with respect to the Plan; and

   (c) in the case of non-voting classes, the creditors and
       interest holders who are entitled to receive certain
       non-voting materials.

                      Voting Deadline

The Debtors propose that all Ballots from a holder of a Claim in
a Class entitled to vote must be properly executed, completed,
and delivered so as to be received by BSI no later than 4:00
p.m., prevailing Eastern Time, on April 9, 2007.

The Debtors submit that the solicitation period is sufficient
for creditors to make an informed decision to accept or reject
the Plan.

However, the Debtors also seek the Court's authority, to extend,
after consultation with the Official Committee of Unsecured
Creditors, the Voting Deadline, if necessary, without further
Court order, to not later than five business days before the
Confirmation Hearing.  The Debtors will publish on
http://www.deltadocket.com/an announcement of the extension.

              Procedures for Ballot Tabulation

The Debtors propose that each claimholder under the Voting
Classes is entitled to vote the amount of its claim as set forth
in their Schedules of Liabilities, as amended.  If that
claimholder has filed a proof of claim, it would be entitled to
vote the amount of its claim as set forth in the proof of claim.

The Debtors' proposed general tabulation procedures are subject
to these exceptions:

   (a) If a claim is deemed allowed under the Plan or a Court
       order, the claim is allowed for voting purposes in the
       deemed Allowed amount;

   (b) If a claim for which a proof of claim has been timely
       filed is wholly contingent, unliquidated or disputed, the
       claim is temporarily allowed only for voting purposes at
       US$1, and the Ballot mailed to the holder of the claim
       will be marked as voting at US$1;

   (c) If a claim is partially liquidated and partially
       unliquidated, the holder of that claim is allowed for
       voting purposes only in the liquidated amount;

   (d) If a claim has been estimated or allowed for voting
       purposes by Court order, the claim is temporarily allowed
       in the amount so estimated or allowed for voting purposes
       only;

   (e) If a claim is listed in the Schedules as contingent,
       unliquidated or disputed and a proof of claim was not:

         * filed on or before the applicable Court-established
           bar date for the filing of proofs of claim; or

         * deemed timely filed by a Court order prior to the
           Voting Deadline,

       then, unless the Debtors have consented in writing, the
       the claim is disallowed for voting purposes and for
       purposes of allowance and distribution pursuant to
       Bankruptcy Rule 3003(c);

   (f) If the Debtors have filed an objection to a claim before
       the Voting Deadline, the claim is disallowed for voting
       purposes only, except to the extent and in the manner as
       may be set forth in the objection;

   (g) In light of the Court-approved stipulations entered into
       between the Debtors, the Creditors Committee and DP3,
       Inc., neither the Debtors nor their agents will have an
       obligation to consider any proofs of claim filed in
       respect of the Delta Pilots Bridge Plan and the Delta
       Pilots Annuity Plan for purposes of determining whether
       and in what amounts holders of the claims will vote; and

   (h) Any creditor who has filed or purchased duplicate claims,
       whether against the same or multiple Debtors, that are
       classified under the Plan in the same class, will be
       provided with only one Solicitation Package and one
       ballot for voting a single claim in that class,
       regardless of whether the Debtors have objected to the
       duplicate claims.

The Debtors propose, without further Court order, not to count:

   (i) any Ballot properly completed and executed, but does not
       indicate an acceptance or rejection of the Plan, or
       indicates both an acceptance and rejection of the Plan;

  (ii) any Ballot actually received by the Solicitation Agent
       after the Voting Deadline unless the Debtors, after
       consultation with the Creditors Committee, have granted
       in writing an extension of the Voting Deadline with
       respect to that Ballot;

(iii) any Ballot that is illegible or contains insufficient
       information to permit the identification of the claimant;

  (iv) any Ballot cast by a person or entity that does not hold
       a claim in a Voting Class;

   (v) any Ballot cast for a claim scheduled as unliquidated,
       contingent or disputed for which no proof of claim was
       timely filed;

  (vi) any unsigned or non-originally signed Ballot;

(vii) any Ballot sent directly to any party other than the BSI;

(viii) any Ballot cast for a claim that has been disallowed; and

  (ix) any Ballot transmitted to BSI by facsimile or other
       electronic means.

The Debtors also propose that brokers, banks, dealers or other
agents or nominees through which beneficial owners hold the
Debtors' public securities and are entitled to vote be required
to receive and summarize on a Master Ballot all Beneficial
Ballots cast by the beneficial holders and timely returned.

The Debtors further propose to apply additional rules for the
tabulation of Master Ballots and Ballots cast by Voting Nominees
and Beneficial Holders:

    -- Votes cast by the Beneficial Holders through a Voting
       Nominee will be applied against the positions held by the
       entities in the applicable securities as of the Voting
       Record Date, as evidenced by the record and depository
       listings.  Votes submitted by a Voting Nominee, whether
       pursuant to a Master Ballot or pre-validated Beneficial
       Ballots, will not be counted in excess of the Record
       Amount of the securities held by that Voting Nominee;

    -- To the extent that conflicting votes or "overvotes" are
       submitted by a Voting Nominee, BSI will make a reasonable
       attempt to reconcile discrepancies with the Voting
       Nominees;

    -- To the extent that overvotes on a Master Ballot or
       pre-validated Beneficial Ballots are not reconcilable
       prior to the preparation of the vote certification, BSI
       will apply the votes to accept and to reject the Plan in
       the same proportion as the votes to accept and reject the
       Plan submitted on the Master Ballot or pre-validated
       Beneficial Ballots that contained the overvote, but only
       to the extent of the Voting Nominee's position in the
       applicable security; and

    -- For purposes of tabulating votes, each Voting Nominee or
       Beneficial Holder will be deemed to have voted the
       principal amount of its Claim relating to the security,
       although BSI may be asked to adjust the principal amount
       to reflect the claim amount, including prepetition
       interest.

                      About Delta Air

Headquartered in Atlanta, Georgia, Delta Air Lines (OTC: DALRQ)
-- http://www.delta.com/-- is the world's second-largest
airline in terms of passengers carried and the leading U.S.
carrier across the Atlantic, offering daily flights to 502
destinations in 88 countries on Delta, Song, Delta Shuttle, the
Delta Connection carriers and its worldwide partners.  The
Company and 18 affiliates filed for chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923).
Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents
the Debtors in their restructuring efforts.  Timothy R. Coleman
at The Blackstone Group L.P. provides the Debtors with financial
advice.  Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at
Akin Gump Strauss Hauer & Feld LLP, provide the Official
Committee of Unsecured Creditors with legal advice.  John
McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James
S. Feltman at Mesirow Financial Consulting, LLC, serve as the
Committee's financial advisors.  As of June 30, 2005, the
company's balance sheet showed US$21.5 billion in assets and
US$28.5 billion in liabilities.  (Delta Air Lines Bankruptcy
News, Issue No. 56; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


ENESCO GROUP: Wants Auction for Assets Scheduled on February 7
--------------------------------------------------------------
Enesco Group Inc. asks the U.S. Bankruptcy Court for the
Northern District of Illinois in Chicago, for approval to sell
its assets on Feb. 7, 2006, the Associated Press reports.  The
company wants the sale hearing on February 8.

Tinicum Capital Partners II LP, the company's proposed lead
buyer, agreed to open bidding for the Debtors' assets with an
undisclosed offer that would wrap the company's US$56 million
senior secured debt.

Court papers show that Tinicum would get a 3% break-up fee of
the purchase price if it were beaten out during the auction.

Enesco began talks with Tinicum late October 2006 following a
failed discussion with a potential buyer for about a month,
according to court documents.

As reported in the Troubled Company Reporter on Jan. 15, 2007,
after the deal, substantially all of Enesco's assets would be
owned by the Tinicum Capital.  Enesco doesn't anticipate any
distribution to its stockholders from the transaction.

                     About Enesco Group

Headquartered in Itasca, Illinois, Enesco Group, Inc. ---
http://www.enesco.com/-- is a producer of giftware, and home
and garden decor products.  Enesco's product lines include some
of the world's most recognizable brands, including Disney,
Heartwood Creek, Nickelodeon, Cherished Teddies, Lilliput Lane,
Border Fine Arts, among others.

Enesco distributes products to a wide array of specialty gift
retailers, home d,cor boutiques and direct mail retailers, as
well as mass-market chains.  The company serves markets
operating in Europe, Australia, Mexico, Asia and the Pacific
Rim.  With subsidiaries in Europe, Canada and a business unit in
Hong Kong, Enesco's international distribution network leads the
industry.

Enesco Group and its two affiliates, Enesco International Ltd.
and Gregg Manufacturing, Inc., filed for chapter 11 protection
on Jan. 12, 2007 (Bankr. N.D. Ill. Lead Case No. 07-00565).
Shaw Gussis Fishman Glantz Wolfson & Tow and Skadden, Arps,
Slate, Meagher & Flom LLP, represent the Debtors.  The Debtors'
financial condition as of Nov. 30, 2006, showed total assets of
US$155,350,698 and total debts of US$107,903,518.


FORD MOTOR: Mark Fields Giving Up Use of Company Plane
------------------------------------------------------
Mark Fields, the head of North American operations at Ford Motor
Co., told the United Press Institute that he would give up his
free use of a company plane to fly home to south Florida from
Detroit on weekends.

According to UPI, Mr. Fields had been widely criticized for
using Ford Motor's jet when the firm is trying to make up for a
projected US$4.5 billion loss in its North American operations
last year, out of the total US$7 billion loss.

UPI notes that the Detroit-Florida flights cost Ford Motor
US$214,479 in the fourth quarter of 2005, the only period Ford
Motor has made public.  The full cost for last year is likely to
be disclosed later this year.

Mr. Fields was put in charge of the North American operations,
Ford Motor's largest business sector in October 2005.  His
compensation that year was US$3.2 million, including a
US$1-million bonus to take the job, UPI states.

Bryce G. Hoffman of The Detroit News writes that part of Mr.
Fields' compensation contract when he was promoted to head
Ford's Americas group in 2005, was the use of the Ford corporate
jet for personal travel.

Mr. Hoffman relates that Ford spokesman Tom Hoyt confirmed Mr.
Field's decision.  Mr. Fields was worried that the controversy
was distracting Ford's efforts to turnaround its North American
automobile operations.

"He doesn't want this or any other issue to distract the team,"
Mr. Hoyt said, adding that decision was Fields' alone.  "This
was Mark's decision.  The company supported his commitment to
his family."

Mr. Fields will continue his weekly commute from south Florida,
where his family lives, using a commercial carrier, Mr. Hoffman
reports.

During his career at Ford, Mr. Fields and his family have
relocated several times.  He felt the deal would allow him to
give Ford his undivided attention during the week while avoiding
another disruption for his wife and children, Mr. Hoffman says.

Mr. Fields was credited for turning around Ford's European and
Premier Automotive Group as head for 17 months, the Associated
Press relates.

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: Picks AutoSoft to Complete IDMS Strategy
--------------------------------------------------------
AutoSoft Inc. has signed a contract with General Motors to
deliver on behalf of GM, Integrated Dealership Management
Systems or IDMS throughout North America.  AutoSoft will utilize
its current Windows-based DMS offering as the foundation for the
IDMS solution moving forward, automating dealerships'
accounting, parts, service, payroll, finance and CRM to improve
overall efficiencies.  Terms of the contract were not disclosed.

AutoSoft Inc. becomes one of only four "endorsed providers" that
will deliver IDMS on behalf of GM to GM-branded dealerships as
GM completes its North American IDMS strategy.  General Motors
dealers now have a wider choice of IDMS providers to choose from
to simplify their technology requirements and streamline
operations, resulting in improved productivity and increased
customer satisfaction.

AutoSoft is pleased to be part of GM's elite group of IDMS
"endorsed providers" and looks forward to an equally beneficial
relationship with GM.

"The recognition by General Motors of AutoSoft and the signing
of this contract further establishes the presence of AutoSoft as
the third-largest DMS provider in North America," said Charlie
Prophet, AutoSoft Chief Operating Officer.  "We have had a long
and successful relationship with General Motors and this move
will only enhance our relationship moving forward."

                    About AutoSoft Inc.

A privately held company, AutoSoft has provided technology
solutions to new-car dealerships for more than 20 years.
AutoSoft today provides DMS solutions and support services to
more than 1,700 dealerships nationwide.  Its Windows and PC-
based AutoSoft DMS operates on PCs and other equipment the
dealership may already own, saving users hardware costs.  The
AutoSoft DMS provides full DCS integration with all domestic and
most import manufacturers' systems, including the GM RIM
program, plus integration with many third-party solutions
providers such as RouteOne and DealerTrack.

General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- is the
world's largest automaker and has been the global industry sales
leader since 1931.  Founded in 1908, GM employs about 327,000
people around the world.  It has manufacturing operations in
33 countries, including Mexico, 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 OKs Saul Ewing as Equity Panel's Co-Counsel
---------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware gave
the Official Committee of Equity Security Holders of Global
Power Equipment Group and its debtor-affiliates to retain Saul
Ewing LLP, as its co-counsel, nunc pro tunc to Dec. 1, 2006.

The firm will work with Brown, Rudnick, Berlack, Israels, LLP,
who is also the Equity Committee's co-counsel, to represent its
interest relating to the Debtors' chapter 11 cases.

The firm is expected to:

     a) advise the Equity Committee with respect to its rights,
        duties and powers in these chapter 11 cases;

     b) assist and advise the Equity Committee in its
        consultations with the Debtors relative to the
        administration of these chapter 11 cases;

     c) assist the Equity Committee in analyzing the claims of
        the Debtors' creditors and the Debtors' capital
        structure and in negotiating with holders of claims and
        equity interest;

     d) assist the Equity Committee in its investigation of the
        acts, conduct, assets, liabilities and financial
        condition of the Debtors and of the operation of the
        Debtors' businesses;

     e) assist the Equity Committee in its investigation of the
        liens and claims of the Debtors' prepetition lenders and
        the prosecution of any claims or causes of action
        revealed by the investigation;

     f) assist the Equity Committee in its analysis of, and
        negotiations with, the Debtors or any third party
        concerning matters related to, among other things, the
        assumption or rejection of certain leases of
        nonresidential real property and executory contracts,
        asset dispositions, financing of other transactions and
        the terms of one or more plans of reorganization for the
        Debtors and accompanying disclosure statements and
        related plan documents;

     g) assist and advise the Equity Committee as to its
        communications to equity holders regarding significant
        matters in these chapter 11 cases;

     h) represent the Equity Committee at hearings and other
        proceedings;

     i) review and analyze applications, orders, statements of
        operations and schedules filed with the Court and advise
        the Equity Committee as to their propriety;

     j) assist the Equity Committee in preparing pleadings and
        applications as may be necessary in furtherance of the
        Equity Committee's interests and objectives;

     k) prepare, on behalf of the Equity Committee, any
        pleadings, including without limitations, motions,
        memoranda, complaints, adversary complaints, objections
        or comments in connection with any of the foregoing; and

     l) perform other legal services as may be required or are
        otherwise deemed to be in the interests of the Equity
        Committee in accordance with the Equity Committee's
        powers and duties as set forth in the Bankruptcy Code,
        Bankruptcy Rules or other applicable law.

Mark Minuti, Esq., a partner of the firm, will bill US$475 per
hour for this engagement.  He also discloses that the firm's
designated professionals bill:

     Professional              Designation       Hourly Rate
     ------------              -----------       -----------
     Jeremy W. Ryan, Esq.       Associate           US$330
     Patrick J. Railey, Esq.    Associate           US$260
     G. David Dean, Esq.        Associate           US$235

     Jason E. Kittinger         Paralegal           US$150

The firm's other professionals bill:

     Designation           Hourly Rate
     -----------           -----------
     Partners               US$335-US$650
     Special Counsel        US$250-US$440
     Paraprofessionals       US$95-US$215

Mr. Minuti assures the Court that the firm does not hold any
interest adverse to the Debtors, its estate or creditors.

Mr. Minuti can be reached at:

     Mark Minuti, Esq.
     222 Delaware Avenue
     Suite 1200
     P.O. Box 1266
     Wilmington, DE 19899
     Tel: (302) 421-6800
     Fax: (302) 421-6813
     http://www.saul.com/

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.


LEAR CORP: Reschedules Earnings Conference Call Tomorrow
--------------------------------------------------------
Lear Corp. rescheduled its conference call to review the
company's fourth-quarter and full-year 2006 financial results
and related matters.

The new time for the call is 8:00 a.m. EST on Jan. 25, 2007.
This revision is to avoid conflict with Ford Motor Co.'s
conference call, which was added to the schedule.

On Jan. 18, Lear Corp. previously disclosed it will release its
fourth quarter and full year 2006 financial results on Jan. 25
before the stock market opens.

To participate in the conference call:

   -- Domestic calls: 1-800-789-4751
   -- International calls: 1-706-679-3323

The audio replay will be available two hours following the call
at:

   -- Domestic calls: 1-800-642-1687
   -- International calls: 1-706-645-9291

The audio replay will be available until Feb. 8.

A live audio Web cast of the call, in listen only mode, is
available at http://www.lear.com/.

Inquiries can be addressed to:

         Melissa Skauradchun
         Manager, Investor Relations
         Lear Corporation
         Tel: (248) 447-5648
         E-mail: mskauradchun@lear.com

                      About the Company

Southfield, Mich.-based Lear Corp. (NYSE: LEA) --
http://www.lear.com/-- is a global supplier of automotive
interior systems and components.  Lear provides complete seat
systems, electronic products, electrical distribution systems,
and other interior products.

Lear also operates in Argentina, Austria, Belgium, Brazil,
Canada, China, Czech Republic, United Kingdom, France, Germany,
Honduras, Hungary, India, Italy, Japan, Mexico, Morocco,
Netherlands, Philippines, Poland, Portugal, Romania, Russia,
Singapore, Slovakia, South Africa, South Korea, Spain, Sweden,
Thailand, Tunisia, Turkey and Venezuela.

                        *    *    *

As reported on Nov. 23, 2006, Moody's Investors Service raised
Lear Corp.'s rating outlook to stable from negative and affirmed
all other Lear ratings.

On Nov. 20, 2006, Standard & Poor's Ratings Services assigned
its 'B-' ratings to Lear Corp.'s US$300 million senior notes due
2013 and its US$400 million senior notes due 2016.

Lear's 'B+' corporate credit and other ratings were affirmed.
The outlook is negative.

Moody's Investors Service has assigned a B3, LGD4, 61% rating to
Lear Corp.'s new offering of US$700 million of unsecured
notes.  At the same time, Moody's affirmed Lear's Corporate
Family Rating of B2, Speculative Grade Liquidity rating of SGL-2
and negative outlook.  All other long-term ratings are
unchanged.


SWIFT & CO: Engages JPMorgan as Financial Advisor
-------------------------------------------------
Swift & Co.'s board of directors has engaged JPMorgan to assist
it in a review of strategic and financial alternatives.  The
review was initiated as a result of a series of unsolicited
inquiries over the past six months from a variety of strategic
and financial third parties, as well as currently robust capital
market conditions.  The Swift Board of Directors includes
representatives of HM Capital Partners LLC, Swift's majority
shareholder, and its investment partner, Booth Creek Management
Corp.

In the review process the Swift Board will consider the full
range of possible alternatives, including, among others, a
possible sale, merger, strategic partnerships, refinancing and
public equity offering. The Board emphasized that no decision
has been made to pursue any particular alternative and it is
possible that no alternative will ultimately be pursued.

Edward Herring, a Director of Swift & Company and Partner of HM
Capital, stated, "Swift is an excellent company with very
significant value, growth and earnings potential.  As such, we
will not pursue any transaction that does not fully reflect and
realize the value of Swift. HM Capital and Booth Creek believe
that Swift President and CEO Sam Rovit and his management team
have done a great job of leading the company through some
challenging times and positioning it for long-term strength and
success. We are confident that the team is fully focused on
Swift's operations and will continue to deliver strong
performance during this process."

The Board stated that neither it nor Swift management will have
any further public comment on the review until the process is
completed.

Swift & Company, headquartered in Greeley, Colorado, is a major
processor of beef and pork, with operations in the US and
Australia.  It has sales offices in Mexico.

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 22, 2006,
Moody's Investors Service placed Swift & Company's B3 senior
unsecured rating, its Caa1 senior subordinated rating, and B2
corporate family rating under review for possible downgrade.


VOLKSWAGEN AG: Peter Hartz Attains Preliminary Agreement on Case
----------------------------------------------------------------
Former Volkswagen AG's Personnel Chief Peter Hartz attained plea
agreement on accusations that he approved improper bonuses for
Klaus Volkert, the former head of VW's employee council,
Bloomberg News reports.

According to reports, during his trial on Jan. 17, at a court in
Braunschweig, Germany, Mr. Hartz admitted that from 1995 to
2004, he organized secret bonuses and payments totaling EUR2.5
million for Mr. Volkert.

Mr. Hartz admitted to 44 charges of breach of trust, and
breaking Germany's co-determination laws, which forbids
companies from favoring workers' representatives.

Mr. Hartz disclosed that no other VW top managers, including
Ferdinand Piech, were aware of the payments.

"My client admits the charges," Egon Mueller, Mr. Hartz's lawyer
was quoted by The Financial Times as saying.

According to FT, Mr. Hartz made the secret payments to retain
good relations with Mr. Volkert, who in exchange, played a key
role in backing Mr. Hartz's labor restructuring programs.

"My client decided Volkert should be treated as a top manager,"
Mr. Mueller was quoted by Bloomberg as saying.

Egon Mueller reached a preliminary agreement with prosecutors
that could lead to as much as two years of probation and fine,
Judge Gerstin Dreyer said.

According to FT, Judge Gerstin Dreyer acknowledged that
Mr. Hartz did not gain from the scandal and acted on interests
of VW.

A dozen other people also face trial in the scandal, including
Mr Volkert.  Mr Hartz's trial continues on Jan. 25.

VW, which filed the initial legal charges against Mr. Hartz in
2005, refused to comment.  Mr. Hartz's trial will continue on
Jan. 25.

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

                        *    *    *

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

In November 2006, Volkswagen maintained its 2005 earnings
guidance amid rumors it may lower targets.  The company predicts
a year-on-year improvement in both operating profit after
special items and profit before tax this year.  Rumors flew that
the company would slash full-year earnings forecast due to
higher restructuring costs.  The company said the impact of its
workforce reduction measures, which will be charged as special
items in the fourth quarter, will be lower than last year's.

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


VOLKSWAGEN AG: Skoda Unit Sells 549,667 Total Vehicles
------------------------------------------------------
Volkswagen AG's Czech unit Skoda Auto A.S. sold a total of
549,667 Fabia, Octavia, Roomster and Superb vehicles in over 90
countries in 2006.  Compared with 2005, the sales increased by
11.7%.

"The growth of Skoda Auto's sales was greater than that of the
entire market.  The company has reinforced its position as a
major player in European markets and managed to take advantage
of the increasing growth in Asia," Detlef Wittig, Skoda Auto BOD
Chairman disclosed.

Scoda sold 270,274 Octavia vehicles in 2006, 243,982 Fabias and
20,989 Superbs.  A total of 14,422 customers bought the
Roomster, a brand new model line that was launched in market
acceptance, the car manufacturer set up a third production shift
two months earlier than planned.

Skoda increased its sales by 9.1% in Western Europe with a total
of 301,343 vehicles sold.  The most successful markets are now
Germany, Great Britain, Spain and Austria - the car manufacturer
has increased its market shares substantially and set new sales
records.

Altogether 118,527 vehicles have been registered in Germany,
38,801 vehicles were in Great Britain, 24,869 vehicles in Spain
and 16,943 vehicles in Austria.

The company also defended its market leading position in the
Czech Republic.  New registrations include 37,388 Fabias, 21,233
Octavias, 2,406 Roomsters and 1,835 Superbs.

With 146,612 vehicles sold in Central and Eastern Europe, Skoda
Auto has grown also in this part of the world.  The company has
defended its market leading position in Poland with a 12.04%
share.  Besides the Czech Republic and Poland, Skoda is the
market leader in Slovakia, Bulgaria, in Lithuania and
Bosnia/Herzegovina. Very successful markets are Estonia,
Lithuania and Latvia. Russia, the Ukraine and Kazakhstan are
growing dynamically, too.

Skoda Auto sold 36,541 vehicles in the Asia and Pacific region
in 2006, the largest markets being India, Turkey, Egypt and
Israel.  The company has also set new production records.

Skoda Auto produced altogether 556,443 vehicles in its
manufacturing plants in the Czech Republic in 2006, 12.5% more
than in 2005.  The Mlada Boleslav plant produced 240,919 Octavia
and Fabia vehicles, Vrchlab¡ 96,853 Octavia and Octavia Tour
vehicles, Kvasiny.

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

                        *    *    *

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

In November 2006, Volkswagen maintained its 2005 earnings
guidance amid rumors it may lower targets.  The company predicts
a year-on-year improvement in both operating profit after
special items and profit before tax this year.  Rumors flew that
the company would slash full-year earnings forecast due to
higher restructuring costs.  The company said the impact of its
workforce reduction measures, which will be charged as special
items in the fourth quarter, will be lower than last year's.

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




=================
N I C A R A G U A
=================


* NICARAGUA: Posts Fuel Price Cuts
----------------------------------
Fuel prices in Nicaragua were reduced, Prensa Latina reports.

Premium gas price decreased to US$0.77, the lowest price in two
years.  Meanwhile, diesel dropped to US$0.65 and regular gas
declined to US$0.74, the same report says.

The Nicaragua Energy Institute told Prensa Latina that prices
decreased since the United States disclosed a reserve
improvement, making a decline in price for oil from the Gulf of
Mexico, Nicaragua's main supplier.

The National Network in Defense of Consumers hopes the price
reduction will extend to the family shopping basket, bus fare
and energy tariffs, published reports say.

                        *    *    *

Moody's Investor Service assigned these ratings to Nicaragua:

                     Rating     Rating Date
                     ------     -----------
   Long Term          Caa1     June 30, 2003
   Senior Unsecured
   Debt                B3      June 30, 2003




=======
P E R U
=======


* PERU: International Consortium Launches LNG Project
-----------------------------------------------------
The Peru LNG project, the largest industrial project ever to be
undertaken in the history of Peru, officially launched by
awarding to Chicago Bridge & Iron Company N.V. aka CB&I, the
engineering, procurement and construction contract for a natural
gas liquefaction plant valued in excess of US$1.5 billion.  The
Notice To Proceed authorization represents a commitment by the
international project consortium, consisting of Hunt Oil Company
of the United States, SK Corporation of Korea and Repsol YPF of
Spain, to move forward with their direct investments to develop
the Peru LNG gas export project. Hunt Oil Company will serve as
operator of the project.

Peru LNG is a key component in Peru's overall energy plan.
Natural gas resources in excess of local demand will be exported
as a sustainable commodity for more than two decades with
exports expected to commence in mid 2010.

The total cost for the project, including the liquefaction
plant, related marine and pipeline facilities and development
and financing costs, aggregates approximately US$3.8 billion and
is the largest foreign direct investment in Peru's history.  It
has the strong support of the Peruvian government, as it will be
an important engine of economic growth and jobs in Peru.  Once
in operation, Peru LNG is expected to generate roughly US$800
million annually of hard currency export revenues. During the
construction phase, 35,000 direct and indirect jobs will be
generated.

Financing for the project is expected to come from a variety of
sources, including the Inter-American Development Bank, with
which Peru LNG signed an US$800 million mandate letter in July
2006.

"The PLNG project continues to be on schedule with the strong
support we are getting from the Peruvian government as well as
the confidence we have in the country's stability," said Steve
Suellentrop, president of PLNG, "and we anticipate project
completion in the first half of 2010 as originally planned."

The EPC contract awarded to CB&I for the LNG plant and marine
facilities, valued in excess of US$1.5 billion, represents the
largest single investment of the project.  The entire project is
expected to take four years to complete.

CB&I is one of the world's leading EPC companies.  The company
recently constructed a LNG import facility in the Dominican
Republic, hiring and training 90 percent of its workforce from
the local population and completing the project without a single
recordable injury or lost workday.

"We feel confident that CB&I is the very best company with which
we could contract to build the facilities associated with this
important project," said Mr. Suellentrop.  "We look forward to
the rapid expansion of the Peru LNG project in the days and
months ahead," he said.

                        *    *    *

As reported in the Troubled Company Reporter on Nov. 22, 2006,
Standard & Poor's Ratings Services raised its long-term foreign
currency sovereign credit rating on the Republic of Peru to
'BB+' from 'BB' and its long-term local currency sovereign
credit rating to 'BBB-' from 'BB+'.  Standard & Poor's also
raised its short-term local currency sovereign credit rating to
'A-3' from 'B', and affirmed its 'B' short-term foreign currency
sovereign credit rating on the republic.  The outlook on the
ratings was revised to stable from positive.  Standard & Poor's
also raised its assessment of the risk of transfer and
convertibility to 'BBB' from 'BBB-'.


* Garrigues Opens New Office in Warsaw
--------------------------------------
Garrigues opened a new office in Warsaw, Poland as a first step
towards establishing its presence in other central and eastern
European countries.

The venture involves the integration into Garrigues of the firm
"Fuster & Sartorius" which has been operating in the region for
five years, and its founders, Jaime Fuster and Jacobo Sartorius,
will be joining Garrigues as partners after ratification at the
upcoming Partners' Meeting.  Both professionals have extensive
experience in providing advice to businesses on setting up
operations in these countries and will be responsible for
Garrigues' expansion in the region.

The new Warsaw office will field an initial team of fifteen
lawyers, covering practically all practice areas:

   -- real estate and zoning;
   -- financial services and banking;
   -- foreign investment;
   -- corporate;
   -- infrastructure;
   -- labor and employment;
   -- litigation, and tax.

The opening of this office is a natural consequence of
Garrigues' attitude to economic globalization.  Just a few years
ago, Spain and Portugal were basically destinations for
investment, with the exception of capital invested in Latin
America, but the situation is changing rapidly.  After heavily
backing the Latin American market, with a significant network of
its own offices and a presence through Affinitas in Latin
America, a natural region for growth given the cultural and
linguistic similarities, Garrigues has set its sights on other
areas increasingly targeted by European investors.  This new
phase in its strategy commenced with the opening of its offices
in Shanghai and Casablanca and now continues in Central and
Eastern Europe.

"For some time now, Garrigues has been seeing a steady flow of
Spanish and Portuguese investments towards Eastern Europe,"
explained Garrigues Partner Jose Palacios, one of the architects
of the Firm's international expansion.  "The next logical step
was to ensure an ongoing service by setting up our own office in
the Polish capital.  Our ultimate objective, however, given the
interest we have noted in Spain in everything happening in the
new EU Member States, is to become the firm of choice in the
local markets in this region."

As Jaime Fuster, ultimately responsible for Garrigues' expansion
in the region sees it, "the strategy goes much further than
Poland, which is, in itself, a highly important country.  The
core idea is to be able to offer our clients a comprehensive
service throughout Central and Eastern Europe.  We plan to open
an office in Romania and foreseeably another in Bulgaria in
2007."

The Garrigues EU and Antitrust Law Department and the
international Taxand network, of which Garrigues is a founding
member, will support the new Warsaw office.  "Our aim is for all
our offices to be perceived by clients as a byword for quality
and service" explained Marcos Araujo, the partner in charge of
the Department.  "There is no reason why the Warsaw office
should be any different from the Madrid, Barcelona, Lisbon or
Seville offices."

Garrigues' international network boasts 27 offices in the
Iberian Peninsula with another five offices in Brussels,
Casablanca, New York, Shanghai and Warsaw.

                       About Garrigues

Spain-based law firm, Garrigues, founded in 1941, is the legal
services firm in the Iberian Peninsula, EUR223.1 million in 2006
in terms of billings and 1,700 of professionals at present and a
total of over 2,000 employees.

The Firm, which provides legal and advisory services in all
areas of law, with 25 offices across Spain and another 2 in
Portugal.

Garrigues promotes 'Affinitas', an international Latin American
alliance of leading law firms in Argentina, Brazil, Colombia,
Chile, Spain, Mexico, Peru and Portugal.  Affinitas, created in
February 2004, is the result of a far-reaching and exclusive
commitment to integration by its member firms.  The Affinitas
network currently comprises over 2,500 professionals, operating
in 12 countries.

Garrigues is also a founding member of Taxand, an independent
alliance of exclusively tax firms, which has more than 1,650
professionals from 36 firms in Europe, the Americas, Asia and
Africa.  In Poland, the Taxand member firm is Accreo and,
accordingly, the Garrigues' new Warsaw office will be able to
offer fully backed advisory services to the highest standard.

              Extensive Professional Experience

Jaime Fuster boasts a wealth of experience in private
international law, corporate law, public transportation law and
project finance.  His career has focused, above all, on the
business world, combining his law practice with other functions
such as directorships and secretaryships at various
multinationals.  He is currently a member of the Advisory Board
of the Real Estate Fund in Central and Eastern Europe and
Secretary of the Internationalization Committee of the Madrid
Association of Real Estate Developers.

Jacobo Sartorius is an expert in public and private
international law and has broad experience in proceedings at
foreign, international and arbitration courts and tribunals,
such as the European Court of Justice in Luxembourg and the
European Court of Human Rights in Strasbourg.  His professional
career has focused mainly on the field of internationalization
of Spanish business and he has acted in major cross-border
commercial transactions.




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


PILGRIM'S PRIDE: Prices US$650-Million Notes
--------------------------------------------
Pilgrim's Pride Corp. has priced the sale of US$400 million of
its 7-5/8% senior notes due 2015 and US$250 million of its 8-
3/8% senior subordinated notes due 2017.  The US$650 million
aggregate principal amount of the notes is an increase from the
US$450 million offering amount previously announced by Pilgrim's
Pride.  The closing of the offering of the notes is expected to
occur on or about Jan. 24, 2007, subject to customary
conditions.  Pilgrim's Pride plans to use the net proceeds from
the offering to refinance indebtedness incurred in connection
with the acquisition of Gold Kist Inc. and to repurchase certain
of its outstanding senior subordinated notes.

Lehman Brothers Inc. and Credit Suisse Securities (USA) LLC are
joint book running managers for this offering.  BMO Capital
Markets Corp., Deutsche Bank Securities Inc. and J.P. Morgan
Securities Inc. are senior co-managers, and Banc of America
Securities LLC, Stephens Inc. and Stifel, Nicolaus & Company,
Incorporated are co-managers for the offering.

Copies of the prospectus supplement relating to the offering may
be obtained from the offices of Lehman Brothers Inc. at:

          ADP Prospectus Services
          Attn:  Shawn Leandre
          A/C Lehman Brothers
          1155 Long Island Ave.
          Edgewood, NY 11717
          Tel: 1-888-603-5847 (toll free)

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.


HORNBECK OFFSHORE: Shareholders File Class Action Lawsuit
---------------------------------------------------------
Law offices of Brodsky & Smith, LLC and Kahn Gauthier Swick, LLC
or KGS disclose that a securities class action lawsuit has been
filed on behalf of shareholders who purchased the common stock
and other securities of Hornbeck Offshore Services, Inc.,
between Nov. 1, 2006, and Jan. 10, 2007, inclusive.  The class
action lawsuit was filed in the United States District Court for
the Eastern District of Louisiana.  No class has yet been
certified in this action.

The complaint charges Hornbeck and certain of its officers and
directors with violations of the federal securities laws by
making false and misleading statements and omissions about the
company's operations and expected earnings for the 4th Quarter
2006, and for fiscal 2007.  On Jan. 10, 2007, the company
shocked the market by announcing that that it was revising its
EBITDA and earnings per share guidance for the fourth quarter of
2006 and for fiscal 2006, materially reducing EBITDA for the
fourth quarter of 2006 to range between US$33.0 million and
US$34.0 million, down from US$39.0 million to US$41.0 million.
The company announced it now expected per share earnings for the
fourth quarter of 2006 to range between US$0.61 and US$0.63,
down from US$0.72 to US$0.77.  It also expected to reduce 2007
guidance by 15 to 20 percent.

Hornbeck has admitted that it had knowledge over the previous
several months that operating issues had negatively impacted the
company's financial performance, including volatility in the
offshore vessel day-rate, a lag in the shipyard delivery
schedules for new-builds and increased turnaround time for
regulatory dry-dockings, repairs and maintenance, as well as
increased costs for personnel and insurance.

As a result of this unexpected news, the price Hornbeck shares
slumped to a 52-week low in early trading on Jan. 11, 2007, and
the stock was down US$7.11, or 21.2%, on markedly increased
volume.

The law firms can be reached at:

         Brodsky & Smith LLC
         Attn: Evan J. Smith, Esquire
               Marc L. Ackerman, Esquire
         Two Bala Plaza, Suite 602
         Bala Cynwyd, PA 19004
         Tel: 877-LEGAL-90 (toll free)
         E-mail: clients@brodsky-smith.com

                   -- or --

         Kahn Gauthier Swick, LLC
         Attn: Kevin Oufnac
         Tel: 1-866-467-1400, ext. 107
         E-mail: kevin.oufnac@kgscounsel.com

Hornbeck Offshore Services, Inc., a diversified marine service
company headquartered in Covington, Louisiana, is a leading
provider of technologically advanced, new generation OSVs
primarily in the GoM and select international markets, and is a
leading transporter of petroleum products through its fleet of
ocean-going tugs and tank barges primarily in the northeastern
U.S., the GoM and in Puerto Rico.  Hornbeck currently owns a
fleet of over 60 vessels primarily serving the energy industry.

                        *    *    *

As reported in the Troubled Company Reporter on Nov. 17, 2006,
Moody's Investors Service affirmed Hornbeck Offshore Services
Inc.'s Ba3 corporate family rating, Ba3 Probability of Default
Rating, Ba3 and LGD4, 55% senior unsecured note ratings, and
changed the outlook from stable to negative.


HORNBECK OFFSHORE: Says Class Action Lawsuits Are Without Merit
---------------------------------------------------------------
Hornbeck Offshore Services, Inc., has recently learned that
purported class action lawsuits were reportedly filed against
the company and one or more senior executives or directors, in
the United States District Court for the Eastern District of
Louisiana related to disclosures under the securities laws.
Based on its initial review of one of the complaints, Hornbeck
Offshore believes that such lawsuits are without merit and
intends to defend these suits vigorously.  As a public company,
Hornbeck Offshore maintains insurance coverage to address such
matters.  Management remains focused on the operation,
development and growth of the company.

Hornbeck Offshore Services, Inc., a diversified marine service
company headquartered in Covington, Louisiana, is a leading
provider of technologically advanced, new generation OSVs
primarily in the GoM and select international markets, and is a
leading transporter of petroleum products through its fleet of
ocean-going tugs and tank barges primarily in the northeastern
U.S., the GoM and in Puerto Rico.  Hornbeck currently owns a
fleet of over 60 vessels primarily serving the energy industry.

                        *    *    *

As reported in the Troubled Company Reporter on Nov. 17, 2006,
Moody's Investors Service affirmed Hornbeck Offshore Services
Inc.'s Ba3 corporate family rating, Ba3 Probability of Default
Rating, Ba3 and LGD4, 55% senior unsecured note ratings, and
changed the outlook from stable to negative.


WARNER CHILCOTT: Partners with Foamix to Develop Foam Product
-------------------------------------------------------------
Warner Chilcott Company, Inc., a subsidiary of Warner Chilcott
Ltd., and Foamix Ltd. have signed an agreement to jointly
develop a gynecologic foam.  Under the terms of this agreement,
Foamix will be responsible for developing the foam formulations
and Warner Chilcott will have an option to continue definitive
development and worldwide commercialization of the product.
Additional terms were not disclosed.

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

"We are very proud to expand our partnership with an industry
leader such as Warner Chilcott," said Foamix CEO Dr. Dov
Tamarkin. "Foam offers properties that increase usability,
encourage compliance and boost user satisfaction.  Foamix foams
are alcohol-free and able to effectively deliver a broad range
of actives.  Our foams are non-drip, with easy application, thus
making them uniquely suitable for gynecologic application."

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

                        *    *    *

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

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




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


ABN AMRO: Uruguayan Unit Posts UYU342-Million Profit Last Year
--------------------------------------------------------------
Central bank figures show that profit of ABN Amro Uruguay, ABN
Amro's Uruguayan unit, decreased 3.14% to UYU342 million in
2006, compared with 2005, Business News Americas reports.

BNamericas relates that Amro Uruguay's return on equity declined
to 11.5% in 2006, compared with 13.9% in 2005.  Its return on
asset dropped 1.10% in 2006, compared with 1.13% in 2005.

According to BNamericas, Amro Uruguay's operating profit
decreased 17.5% to UYU543 million in 2006, compared with 2005.
Its net service income increased 5.6% to UYU477 million.

The report says that Amro Uruguay's lending increased 14.6% to
UYU25.2 billion as of Dec. 31, 2006, compared with the same time
in 2005.  The non-performing loan ratio decreased to 0.70% of
total loans, from 1.97%.

Amro Uruguay's liabilities including deposits remained flat at
UYU28.8 billion as of Dec. 31, 2006, compared with the same time
2005, BNamericas notes.  The firm's assets increased 8.9% to
UYU32.0 billion.

Amro Uruguay was the country's largest private bank in terms of
loans and assets in 2006.  The bank ranked second in terms of
equity with UYU3.17 billion, BNamericas states.

ABN AMRO Holding NV aka ABN AMRO, which owns all of the shares
of ABN AMRO Bank NV, is an international banking group offering
a range of banking products and financial services on a global
basis through its network of 3,557 offices and branches in 58
countries and territories.  The company's client-focused
business units are Consumer & Commercial Clients, Wholesale
Clients, Private Equity, Private Clients, Asset Management and
Transaction Banking Group.  ABN AMRO has two internal business
units: Group Services and Group Functions.

                        *    *    *

As reported in the Troubled Company Reporter on Jan. 10, 2007,
Fitch Ratings takes these rating actions on ABN AMRO residential
mortgage-backed pass-through certificates:

Series 2003-1:

   -- Class A affirmed at 'AAA';
   -- Class M affirmed at 'AAA';
   -- Class B1 affirmed at 'AA'; and,
   -- Class B4 affirmed at 'BB-'.

Series 2003-2:

   -- Class A affirmed at 'AAA'.

Series 2003-3:

   -- Class A affirmed at 'AAA';
   -- Class M affirmed at 'AAA';
   -- Class B1 affirmed at 'AA';
   -- Class B2 affirmed at 'A';
   -- Class B3 affirmed at 'BBB'; and,
   -- Class B4 affirmed at 'BB'.

Series 2003-4P:

   -- Class A affirmed at 'AAA';
   -- Class M affirmed at 'AAA';
   -- Class B1 affirmed at 'AA';
   -- Class B2 affirmed at 'A';
   -- Class B3 affirmed at 'BBB'; and,
   -- Class B4 affirmed at 'BB'.

Series 2003-5:

   -- Class A affirmed at 'AAA';
   -- Class M affirmed at 'AAA';
   -- Class B1 affirmed at 'AA';
   -- Class B2 affirmed at 'A-';
   -- Class B3 affirmed at 'BBB'; and,
   -- Class B4 affirmed at 'BB'.

Series 2003-6:

   -- Class A affirmed at 'AAA';
   -- Class M upgraded to 'AA+' from 'AA';
   -- Class B1 affirmed at 'A';
   -- Class B2 affirmed at 'BBB-';
   -- Class B3 upgraded to 'BB+' from 'BB'; and,
   -- Class B4 upgraded to 'B+' from 'B'.

Series 2003-7:

   -- Class A affirmed at 'AAA';
   -- Class B1 affirmed at 'A'; and,
   -- Class B4 affirmed at 'B'.

Series 2003-8:

   -- Class A affirmed at 'AAA';
   -- Class M upgraded to 'AA+' from 'AA';
   -- Class B1 affirmed at 'A-';
   -- Class B2 affirmed at 'BBB-';
   -- Class B3 affirmed at 'BB'; and,
   -- Class B4 affirmed at 'B'.

Series 2003-9:

   -- Class A affirmed at 'AAA'.

Series 2003-10:

   -- Class A affirmed at 'AAA';
   -- Class M affirmed at 'AA';
   -- Class B1 affirmed at 'A';
   -- Class B2 affirmed at 'BBB';
   -- Class B3 affirmed at 'BB'; and,
   -- Class B4 affirmed at 'B'.

Series 2003-11:

   -- Class A affirmed at 'AAA';
   -- Class B1 affirmed at 'A-';
   -- Class B3 affirmed at 'BB'; and,
   -- Class B4 affirmed at 'B'.

Series 2003-13:

   -- Class A affirmed at 'AAA';
   -- Class M upgraded to 'AA+' from 'AA';
   -- Class B1 affirmed at 'A';
   -- Class B2 affirmed at 'BBB';
   -- Class B3 upgraded to 'BB+' from 'BB'; and,
   -- Class B4 affirmed at 'B'.

Series Armor MCP 2005-1:

   -- Class B1 affirmed at 'AA+';
   -- Class B2 affirmed at 'AA';
   -- Class B3 affirmed at 'AA-';
   -- Class B4 affirmed at 'A+';
   -- Class B5 affirmed at 'A';
   -- Class B6 affirmed at 'A-';
   -- Class B7 affirmed at 'BBB+';
   -- Class B8 affirmed at 'BBB';
   -- Class B9 affirmed at 'BBB-';
   -- Class B10 affirmed at 'BB+';
   -- Class B11 affirmed at 'BB';
   -- Class B12 affirmed at 'BB-';
   -- Class B13 affirmed at 'B+';
   -- Class B14 affirmed at 'B'; and,
   -- Class B15 affirmed at 'B-'.


WORLDSPAN LP: Renews Partnership with A&I Travel for Five Years
---------------------------------------------------------------
A&I Travel Service, Inc., has renewed its travel distribution
and technology agreement with global travel technology provider
Worldspan, L.P.  The five-year agreement extends a successful
20-year partnership, through which the agency will continue to
rely solely on the Worldspan GDS and industry-leading solutions.

"We chose to stay with Worldspan for many reasons.  They have
historically offered the best fares and pricing system, the
superior solutions and support we need to remain competitive,
and favorable contract terms," said A&I Travel Service President
Rebecca Martin, CTC, CTIE.  "Did we evaluate the competition?
Yes.  We also talked with other industry sources, and even
neutral third-party vendors cited Worldspan as having the best
fares and pricing in the industry."

"A&I Travel Service is a valued customer and Worldspan is
delighted to support their growth initiatives and talented staff
for another five years," said Kathy Fitzpatrick, Worldspan vice
president - North America.  "They are a proactive travel
management company and a shining example of how agencies can
thrive using proven solutions that increase operational
efficiencies, reduce costs and deliver optimum value to
travelers."

A&I Travel Service takes advantage of Worldspan's comprehensive
suite of industry-first fares and pricing solutions, including
Worldspan Rapid Reprice, the travel industry's powerhouse
solution for repricing and reissuing airline tickets when
traveler itineraries change.  The company also employs the
global standard in low-fare shopping technology, Worldspan e-
Pricing, as well as Worldspan SecuRate Air Plus, an industry
leading technology that manages negotiated and private fares via
the Web.

Founded in 1953, A&I Travel Service, Inc. is a full-service
travel agency specializing in corporate travel management.  The
company is an affiliate of BCD Travel, the world's third largest
travel management company.

Headquartered in Atlanta, Georgia, Worldspan, L.P. --
http://www.worldspan.com/-- is a leader in travel technology
services for travel suppliers, travel agencies, e-commerce sites
and corporations worldwide.  Utilizing some of the fastest, most
flexible and efficient networks and computing technologies,
Worldspan provides comprehensive electronic data services
linking approximately 800 travel suppliers around the world to a
global customer base.  Worldspan offers industry-leading Fares
and Pricingtechnology such as Worldspan e-Pricing(R), hosting
solutions, and customized travel products.  Worldspan enables
travel suppliers, distributors and corporations to reduce costs
and increase productivity with technology like Worldspan
Go!(R) and Worldspan Trip Manager(R) XE.  The company's Latin
Americanoperations are in Argentina, The Bahamas, Brazil,
Jamaica, Mexico, Peru, Puerto Rico, Uruguay and Venezuela.

                        *    *    *

As rported in the Troubled Company Reporter on Dec. 13, 2006,
Standard & Poor's Ratings Services assigned ratings to Worldspan
L.P.'s proposed US$1 billion secured credit facility.  The
revolver and first-lien term loan are rated 'B', the same as the
corporate credit rating, and are assigned a recovery rating of
'2', indicating expectations of substantial recovery of
principal in the event of a payment default.

The US$750 million facility consists of a US$50 million revolver
due 2012 and a US$700 million term loan due 2013.  The US$250
million second-lien term loan that matures in 2014 is rated
'CCC+', and assigned a recovery rating of '5', indicating
expectations of negligible recovery of principal in the event of
a payment default.


* URUGUAY: Antel's Mobile Unit Installing 100 New Base Stations
---------------------------------------------------------------
Maria Simon -- president of Antel, Uruguay's state-owned
operator -- told La Republica that the firm's mobile unit Ancel
will install 100 new base stations in Uruguay in 2007 to
increase coverage to 70%.

There are almost 550 base stations across Uruguay.  With the new
base stations, nearly 97% of the population will potentially
have access to mobile telephony, Business News Americas relates,
citing Mr. Simon.

Mr. Simon told BNamericas that Ancel now has 980,000 mobile
telephony lines.

Asymmetric Digital Subscriber Line broadband connections of
Antel Data, Antel's Internet service provider, increased 100% to
almost 100,000 in 2006, compared with 2005, BNamericas says,
citing Mr. Simon.

Antel will also launch a third generation telephony network this
year.  The firm expects this infrastructure to be first
installed in Montevideo and in other provincial capitals,
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+'.


* URUGUAY: To Ink Bilateral Trade & Investment Accord with U.S.
---------------------------------------------------------------
Uruguay will sign a trade and investment pact with the United
States to strengthen and diversify bilateral trade relations,
Mercopress reports, citing John Veroneau, deputy chief of the US
Trade Representative Office.

According to Mercopress, this is the second agreement Uruguay
and the US have signed in the last twelve months.

Mr. Veroneau told Mercopress, "Obviously we're (US) interested
in the expansion of our trade and economic relations with
Uruguay."

Mercopress underscores that Mr. Veroneau will sign in
Montevideo, Uruguay, a Trade Investment Framework Agreement or
TIFA, considered a step before a full free trade accord.

"TIFA reflects the commitment of Uruguay and United States to
further develop our trade relations," Mr. Veroneau told
Mercopress.

The report says that Uruguay and the US have signed in November
2006 an accord to promote and protect investments geared to a
set of rules that are clear and transparent for foreign entities
that want to invest in Uruguay.

TIFA was the starting point to look for further trade and
investment possibilities, Mercopress notes, citing Uruguayan
Economy Minister Danilo Astori.

Mercopress emphasizes that Uruguay, as a member of Mercosur,
could sign a free trade agreement with the US if there's
agreement among members.

The Uruguayan government has criticized Mercosur, claiming it
has not delivered what was expected and that it has limited the
nation's aspirations of reaching trade accords with third
countries.  Uruguaya's President Tabare Vazquez has reiterated
that his nation has plans to leave Mercosur, Mercopress 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
=================


PETROLEOS DE VENEZUELA: Building Gas Pipeline with Petrobras
------------------------------------------------------------
Venezuela's state oil company Petroleos de Venezuela SA aka
PDVSA, has agreed with Petrobras Energia to construct the
regional natural gas pipeline connecting Venezuela and
Argentina, Petrobras Energia said in a statement.

The pipeline will have capacity of 50 million cubic meters per
day.

Business News Americas relates that Petrobras Energia's
President Jose Gabrielli and PDVSA's President Rafael Ramirez
met to discuss several projects.

Mr. Gabrielli told Agencia Estado that the pipeline's economic
and environmental feasibility studies should conclude by
December 2007.

BNamericas underscores the pipeline would be supplied from
Venezuelan gas fields, including Mariscal Sucre that PDVSA and
Petrobras Energia will develop together.

According to the report, Mariscal Sucre's output is estimated at
34 million cubic meters per day, 50% of which would be sold by
PDVSA in the Venezuelan domestic market.  The other half of the
production would go to Brazil through the regional pipeline.

Published reports in Brazil say that the pipeline would
initially deliver gas to Brazil's northeastern region, ending in
Suape port in Pernambuco.  The pipeline would then be extended
to deliver gas in Argentina.

Agencia Estado reports that the first stage of the pipeline
would be completed after 2013.

BNamericas notes that the original pipeline proposal involved
connecting Venezuela to Argentina, crossing the center-west
region of Brazil.  Investments were estimated at US$20 billion.
In the revised project, the pipeline will go through Brazil's
northeastern region.

Bolivia, Argentina, and Uruguay have been invited to participate
in the regional gas pipeline project, BNamericas states.

                   About Petrobras Energia

Petrobras Energia S.A. produces and transports gas and other
crude products in Argentina.  The company is the Argentine
subsidiary of Petroleo Brasileiro SA, Brazil's state-owned oil
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.


PETROLEOS VENEZUELA: Seeking to Acquire Stake in Indian Plant
-------------------------------------------------------------
Venezuela's state oil firm Petroleos de Venezuela SA is seeking
to acquire a substantial equity stake in Indian company MRPL's
plant as well as in the planned 15-million-metric-ton-per-annum
refinery in the Mangalore SEZ, The Economic Times reports.

The Economic Times relates that Petroleos de Venezuela also
wants to own stakes in the discovered and producing assets of
Oil and Natural Gas Corporation Ltd. aka ONGC in India and
abroad.

Luis F Vierna, Petroleos de Venezuela's vice-president in
exploration and production, told The Economic Times, "We want to
pick up stake in MRPL's existing refinery as well as new SEZ
refinery.  We are also seeking to pick up equity in the good
assets of ONGC here and offer them stakes in our oil blocks
there."

According to The Economic Times, ONGC holds a majority stake of
71.62% in MRPL, while 16.97% of the latter is owned by HPCL.

The Economic Times underscores that HPCL also wants to increase
its stake in MRPL to over 26%.

Petroleos de Venezuela may be offered to become equal partner in
the new plant, The Economic Times says, citing sources.
However, the company would be offered a minority stake in MRPL's
refinery.

The report says that Petroleos de Venezuela may enter into crude
supply and agreements with ONGC.  Corporacion Venezulana de
Petroleo, Petroleos de Venezuela's business development unit
will be negotiating the stake deal with the Indian government
and ONGC.

Meanwhile, Petroleos de Venezuela is currently negotiating with
OVL, ONGC's overseas unit, to offer a 30% stake in the San
Cristobal block.  The firm is in the process of securing
certification for the reserves in the block, which may take
another 18 months, The Economic Times states.

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

                        *    *    *

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


* VENEZUELA: Nationalizing Cantv Before Paying Compensation
-----------------------------------------------------------
Venezuelan President Hugo Chavez told the press that the
government will first nationalize Cantv before it will pay any
compensation to the firm's shareholders.

President Chavez told Reuters, "I have to pay [them] first?
You're crazy, I'm not paying anything first, I'll pay when the
law says so and in the manner that the state decides."

President Chavez denied to Business News Americas that the
government has to pay a rate according to international stock
prices.  He asked the telecommunications minister to hasten the
nationalization process by naming a new board of directors.

President Chavez disclosed plans of nationalizing Cantv at the
beginning of this month.  However, the finance minister and the
head of the legislative assembly said that confiscation was not
an option for the government to take, BNamericas notes.

Wally Swain, an analyst with US-based consultancy Yankee Group,
told BNamericas that President Chavez seemed to be interested in
following Venezuela's constitution that calls for compensation.
However, if he calls on the nation's national assembly to review
the constitution, compensation could be withheld legally.

President Chavez could also be making the threat of
nationalization to decrease Cantv's share price in order to
lower the amount of future compensation to be paid out,
BNamericas states, citing Mr. Swain.

                        *    *    *

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


                         ***********


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

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