TCRLA_Public/070126.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

          Friday, January 26, 2007, Vol. 8, Issue 19

                          Headlines

A R G E N T I N A

ACXIOM CORP: Posts US$352.8 Million Third Quarter 2006 Revenues
BALL CORPORATION: Declares Dividend of US$0.10 Per Share
BANCO MACRO: Prices Offering of US$150-Million Notes Due 2017
BANCO MACRO: Moody's Rates US$150-Mln. Notes Due 2017 at B2
GREIF INC: S&P Rates Proposed US$300 Mil. Senior Notes at BB-

INSTITUTO R.P.: Asks for Court Approval to Reorganize Business
KONINKLIJKE AHOLD: Rimi Baltic Hikes Sales by 20% to EUR970 Mln
TELEFONICA DE ARGENTINA: Launching Services in 2 Chubut Towns
VALEANT PHARMACEUTICALS: Moody's Confirms B2 Corp. Family Rating

* ARGENTINA: World Court Denies Uruguay's Plea to Halt Blockades

B A H A M A S

COMPLETE RETREATS: Wants Court to Approve Intagio Settlement

B E R M U D A

BRUNSWICK REAL: Deadline for Proofs of Claim Filing Is April 25
CASTELLUM HOLDINGS: Proofs of Claim Must be Filed by Feb. 6
CASTELLUM RE: Last Day to File Proofs of Claim Is on Feb. 5
EMERGENT GLOBAL: Last Day for Proofs of Claim Filing Is Feb. 22
INTERNATIONAL MUSIC (11): Claims Filing Deadline Is on Feb. 22

SANTA CATALINA: Proofs of Claim Filing Is Until Feb. 5
SCOTTISH RE: Terminates Amended & Restated Credit Agreement

B O L I V I A

PETROLEO BRASILEIRO: Fails to Win Bolivian Gas Supply Contract
YPF SA: Bolivia Excludes Parent from Natural Gas Supply Accords

* BOLIVIA: Set to Recover Gold, Silver & Zinc with Franklin
* BOLIVIA: State Firm Awards Natural Gas Supply Contracts

B R A Z I L

ALCATEL-LUCENT: Deploys Mobile Solution to Vodafone Netherlands
ARVINMERITOR INC: S&P Lowers Corp. Credit Rating to BB- from BB
BANCO BMC: Banco Bradesco to Acquire Bank & Subsidiaries
BANCO BMC: Bradesco Merger Cues Fitch to Put Ratings on WatchPos
BANCO BMG: Posts BRL263 Million Net Profits in 2006

BANCO BRADESCO: Paying Interest on Own Capital on March 1
BANCO BRADESCO: Inks Pact to Acquire Banco BMC & Subsidiaries
BANCO BRADESCO: Fitch Affirms BB+ Foreign Curr. Issuer Rating
BANCO NACIONAL: Prioritizing Improvements to Sanitation Firms
METSO OYJ: Unit to Supply Equipment to Alcoa in Brazil

PETROLEO BRASILEIRO: Petros Boosting Private Sector Investments
SANTANDER BANESPA: Parent to Give 100 Shares to Each Employee

C A Y M A N   I S L A N D S

BARRAMUNDI FUND: Final Shareholders Meeting Is Set for Jan. 29
CREDIPIA 2004: Shareholders to Gather for Jan. 29 Final Meeting
DAVINCI OFFICE: Calls Shareholders for Final Meeting on Jan. 29
E*TRADE ABS: Calls Shareholders for Final Meeting on Jan. 29
EULER CAT: Shareholders to Convene for Final Meeting on Jan. 29

HYUNDAI CAPITAL: Final General Meeting Is Set for Jan. 29
LIONS GLOBAL: Invites Shareholders for Final Meeting on Jan. 29
ONE'S MALL: Calls Shareholders for Final Meeting on Jan. 29
REFLECTION LTD: Final Shareholders Meeting Is on March 11
SAIL VALUE: Shareholders to Gather for Jan. 29 Final Meeting

SEAGATE TECH: Posts US$3B Revenue for Qtr. Ended Dec. 29, 2006
TESCO AQUA: Shareholders to Convene for Jan. 29 Final Meeting
TESCO BLUE: Final Shareholders Meeting Is Set for Jan. 29
TESCO RED: Sets Final Shareholders Meeting on Jan. 29

C H I L E

ROCK-TENN: Acquires GSD Packaging Minority Interest for US$32MM
ROCK-TENN: Sales Reached US$533M for Qtr. Ended Dec. 31, 2006

C O L O M B I A

ARMOR HOLDINGS: Receives US$56MM Component Order from AM General
ECOPETROL: Extends Barrancabermeja Study Tender to February 6
SUN MICRO: Commences US$700MM Notes Private Placement with KKR
SUN MICROSYSTEMS: Inks Landmark Agreement with Intel Corp.
SUN MICROSYSTEMS: Posts US$3.56B for Quarter Ended Dec. 31, 2006

SUN MICROSYSTEMS: S&P Says Debt Placement Won't Affect Ratings

C O S T A   R I C A

BANCO BAC: Posts CRC12.6 Billion Net Profits in 2006

E C U A D O R

PETROECUADOR: Needs US$1 Bil. to Boost & Stabilize Production

G U A T E M A L A

AFFILIATED COMPUTER: Renews HRO Contract with American Financial
AFFILIATED COMPUTER: Elects Robert Holland to Board of Directors

J A M A I C A

MAAX HOLDINGS: Moody's Downgrades Ratings on Senior Notes

M E X I C O

ACCELLENT INC: Moody's Downgrades Corporate Family Rating to B3
ALLIS-CHALMERS: Prices US$250MM Senior Notes Private Offering
AMERICAN AIRLINES: Names Denis Lynn as Global Human Resources VP
CELESTICA INC: Shareholders File Class Action Lawsuit
DELTA AIR: CEO Grinstein Testifies at Senate Committee Hearing

DIRECTV INC: Inks Multi-Year Contract Extension with ClientLogic
FOAMEX INT: Equityholders Unanimously Voted to Accept Plan
GLOBAL POWER: U.S. Trustee Amends Creditors Committee Membership

P A N A M A

CLIENTLOGIC: Inks Multi-Year Contract Extension with DIRECTV

P E R U

* PERU: LNG Consortium Awards Engineering Contract to CB&I

P U E R T O   R I C O

APARTMENT INVEST: Discloses 2006 Dividend Income Tax Allocation
B&G FOODS: COWC to Buy Cream of Wheat & Rice Brands from Kraft
B&G FOODS: Kraft Foold Deal Prompts S&P's Negative CreditWatch
NEWCOMM WIRELESS: Creditors Must File Proofs of Claim by Feb. 7
NEWCOMM WIRELESS: Puerto Rico Counsel Withdrawing from Case

U R U G U A Y

* URUGUAY: State Firm to Invest US$90 Million in 2007
* URUGUAY: World Court Rejects Request to Halt Blockades

V E N E Z U E L A

ARVINMERITOR INC: S&P Lowers Ratings & Removes Negative Watch
CITGO PETROLEUM: Extends Heating Fuel Program to Wisconsin
PETROLEOS DE VENEZUELA: Gas Output Boost Helps Thermo Plants
PETROLEOS DE VENEZUELA: Unit Inks Consulting Pact with Gazprom
PETROLEOS DE VENEZUELA: Unit Handling Engineering for Gasoducto


                         - - - - -


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


ACXIOM CORP: Posts US$352.8 Million Third Quarter 2006 Revenues
---------------------------------------------------------------
Acxiom Corp. disclosed financial results for the third quarter
ended Dec. 31, 2006.

Third-quarter earnings per diluted share of US$0.31 included a
US$0.02 benefit related to a lower-than-expected income tax rate
and a US$0.01 expense related to organizational changes in
Europe.  Third-quarter earnings were equal to the US$0.31 per
diluted share reported in the same quarter a year ago.
Operating income for the quarter decreased 3% to US$51.3
million.  Third-quarter revenue totaled US$352.8 million, an
increase of 2% over the same quarter last year.

"Our earnings continue to improve on a sequential basis but are
not in line with our expectations due to slower than expected
revenue growth," company Leader Charles D. Morgan said.  "We
continue to execute our company-wide initiatives to create more
value for our clients and drive more rapid revenue growth.  We
expect to see more from those efforts over the next several
quarters."

Details of Acxiom's third-quarter performance include:

   * Revenue of US$352.8 million, up 2% from US$347.4 million
     in the third quarter a year ago.  Declines in revenue in
     the traditional IT outsourcing business and from one large
     client undergoing a merger negatively impacted the growth
     rate by 4 percentage points for the quarter and 5
     percentage points year-to-date.

   * Income from operations of US$51.3 million, a 3% decrease
     compared with US$52.7 million in the third quarter last
     year.

   * Diluted earnings per share of US$0.31 equal to the third
     quarter of fiscal 2006.

   * Operating cash flow of US$62.7 million and free cash flow
     available to equity of US$12.6 million.

   * Gross margin of 28.4% compared with 31.4% in the same
     quarter last year.

   * Computer, communications and other equipment expense
     equaling 20.2% of revenue compared with 21.2% of revenue
     in the third quarter of fiscal 2006.

   * Interest expense in the quarter was US$14.9 million
     compared with US$8.6 million in the same quarter a year
     ago.  The increase reflects the US$600 million term loan
     completed in September 2006.  Proceeds from the term loan
     were used to retire debt and buy back approximately 11
     million shares of Acxiom stock.

"While our overall revenue growth number for the quarter was
disappointing, there are several areas of our business that
turned in encouraging performances -- including our digital and
risk businesses and our direct-to-market U.S. data business,"
Mr. Morgan said.  "We also showed strong growth in several key
industries -- including auto and insurance, which were both up
10%, year over year.  We have continued to make investments to
support future revenue growth, as evidenced by our recent
acquisition of Equitec, which brings us strong marketing and
merchandizing optimization expertise in the retail industry."

Mr. Morgan noted that General Motors awarded significant new
business to Acxiom in the quarter and that the company has also
recently completed new contracts with JPMorgan Chase & Co.; The
Container Store; Colonial Penn Life Insurance company; and Sears
Holdings.  He also reported that Acxiom has been awarded
significant business from a large European corporation in a deal
pursued in partnership with EMC and Accenture.

                           Outlook

The company's expectations are communicated in the Financial
Road Map, which includes a chart summarizing the one-year and
long-term goals as well as an explanation of the assumptions and
definitions that accompany these goals.  Acxiom's current
Financial Road Map reflects the company's revised expectations
for fiscal year 2007, and the long-term goals reflect expected
performance in fiscal 2010.

Acxiom anticipates fiscal 2007 earnings per diluted share
between US$0.92 and US$0.97.  This range is based on revising
the income tax rate from 39% to 37% as a result of Congress'
extension of the Research and Experimentation tax credit and
doesn't reflect any European restructuring charges that may be
incurred during the fourth quarter.

These financial projections are based on the assumptions and
limitations set forth in the Financial Road Map. These
projections are forward looking, and actual results may differ
materially.  These projections may be impacted by mergers,
acquisitions, divestitures or other business combinations that
may be completed in the future as well as the other factors.


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

                        *    *    *

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

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


BALL CORPORATION: Declares Dividend of US$0.10 Per Share
--------------------------------------------------------
Ball Corp.'s board of directors declared a cash dividend of 10
cents per share, payable March 15, 2007, to shareholders of
record on March 1, 2007.

Headquartered in Broomfield, Colorado, Ball Corp. --
http://www.ball.com/-- is a supplier of high-quality metal and
plastic packaging products.  It owns Ball Aerospace &
Technologies Corp. -- a developer of sensors, spacecraft,
systems and components for government and commercial customers.
Ball Corp. reported sales of US$5.7 billion in 2005 and the
company employs about 13,100 people worldwide, including
Argentina.

                        *    *    *

Moody's Investors Service assigned ratings to Ball Corp.'s
US$500 million senior secured term loan D, rated Ba1, and
US$450 million senior unsecured notes due 2016-2018, rated Ba2.
It also affirmed existing ratings, which include Ba1 Ratings on
US$1.475 billion senior secured credit facilities and US$550
million senior unsecured notes due Dec. 12, 2012.  Moody's said
the ratings outlook is stable.

Fitch affirmed Ball Corp.'s 'BB' issuer default rating, 'BB+'
senior secured credit facilities, and 'BB' senior unsecured
notes.

Standard & Poor's Ratings Services also affirmed its 'BB+'
corporate credit rating on Ball Corp.

S&P placed the ratings in March 2006.


BANCO MACRO: Prices Offering of US$150-Million Notes Due 2017
-------------------------------------------------------------
Banco Macro S.A. has priced an offering pursuant to Rule 144A
and Regulation S of the U.S. Securities Act of 1933 of US$150
million of its notes due 2017.  The Notes will accrue interest
at a fixed annual rate equal to 8.50% until Feb. 1, 2017.  This
offering is part of a new financing program for the issuance by
Banco Macro from time to time of up to US$400 million aggregate
principal amount of debt securities outstanding at any time.
The Notes were offered at a price of 100% of the principal
amount.  Banco Macro intends to use the net proceeds from the
sale to make loans in accordance with Law No. 23,576, as
amended, and Argentine Central Bank guidelines.

Banco Macro S.A. runs the gambit when it comes to retail and
commercial banking in Argentina.  The bank provides customers
with traditional banking products such as savings, international
financing, checking and deposit accounts, phone and online
banking services, credit cards, and asset management-related
services.  Chief subsidiaries include trading entity Sud
Acciones y Valores, offshore financial institution Sud Bank and
Trust Co., and asset management business Sud Valores Soc. Ger.
F.C.I.  The company was established as a primarily non-banking
institution in 1985.

                        *    *    *

As reported in the Troubled Company Reporter on Jan. 11, 2007,
Moody's Investors Service assigned a provisional B2 global
foreign currency rating to Banco Macro SA's senior unsecured
notes, which are due 2017, for US$150,000,000.  Moody's also
assigned a provisional Aa3.ar in national scale to the same
debt.  The outlook on the ratings is stable.


BANCO MACRO: Moody's Rates US$150-Mln. Notes Due 2017 at B2
-----------------------------------------------------------
Moody's Investors Service assigned a B2 global foreign currency
rating to Banco Macro SA's senior unsecured notes, which are due
2017, in the amount of US$150,000,000.  Moody's also assigned
Aa3.ar in national scale to the same debt.  The outlook on the
ratings is positive.

Moody's said that the B2 foreign-currency bond rating
incorporates Banco Macro's fundamental credit quality, which is
reflected by its Ba3 global local-currency deposit rating and
which includes all relevant country risks.  At this rating
level, Macro's foreign currency bond rating is at the country
ceiling for Argentina

Banco Macro is headquartered in Buenos Aires, Argentina, and it
had ARS8.1 billion in total assets and ARS4.8 billion in
deposits as of September 2006.

These ratings were assigned to Banco Macro SA:

   -- Global foreign currency debt rating: B2, positive outlook

   -- National Scale Rating for foreign currency debt: Aa3.ar,
      positive outlook


GREIF INC: S&P Rates Proposed US$300 Mil. Senior Notes at BB-
-------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB-' ratings to
Greif Inc.'s proposed US$300 million senior unsecured notes due
2017.  The proceeds from the notes will be used to retire
approximately US$248 million in existing senior subordinated
notes due 2012 and for general corporate purposes.  The new
senior notes issue is contingent upon consummation of the tender
offer for the senior subordinated notes.

In addition, Standard & Poor's affirmed its 'BB+' corporate
credit rating on the Delaware, Ohio-based company. The outlook
is stable.

"The speculative-grade ratings on Greif reflect the company's
business profile, which Standard & Poor's considers to be weak.
his factor is mitigated to some extent by the company's
intermediate financial policies, satisfactory liquidity, and
fair credit protection measures. Although it has leading
positions in niche markets, the company competes in cyclical,
commodity-like sectors that experience intense pricing
pressures, and its business units have significant operating
leverage," said Standard & Poor's credit analyst Dan Picciotto.

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.  The company has operations in Australia, Argentina,
Brazil, Belgium, China, Malaysia, among others.


INSTITUTO R.P.: Asks for Court Approval to Reorganize Business
--------------------------------------------------------------
A court in Buenos Aires is studying the merits of Instituto R.P.
Hansen S.R.L.'s petition to reorganize its business after it
stopped paying its obligations.

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


KONINKLIJKE AHOLD: Rimi Baltic Hikes Sales by 20% to EUR970 Mln
---------------------------------------------------------------
Rimi Baltic, a unit of Koninklijke Ahold N.V., increased its net
sales for the operating year 2006.

Ahold opened 29 new stores in 2006 in the Baltic -- six Rimi
hypermarkets, one Rimi supermarket and 22
Supernetto/Saastumarket hard discount stores.

These sales allowed us to maintain our leading positions in
Estonia (market share: 24%) and Latvia (market share: 22%) as
well as to boost the market share of Rimi's operations in
Lithuania, which reached 7%.

The market share of Rimi Baltic in the Baltic region grew with
one percentage point to 16%.

Total investments in all three Baltic countries in 2006 were
EUR62 millions.

"At the end of the year ICA acquired 50% Kesko Food's shares in
Rimi Baltic is now 100% owned by Swedish ICA AB -- being a
subsidiary of one company enables us to operate even more
effectively" says Rimi Baltic CEO Antonio Soares.

Rimi Baltic group sales in 2006 per country, excluding VAT:

                  Million Euro      Increase, %

  Rimi Eesti Food   345.6             7.2%
  Rimi Latvia       429.3             23.9%
  Rimi Lietuva      194.6             40.4%

  Rimi Baltic       969.5        20.0 %

Rimi Baltic operates 204 stores in the Baltic region -- 90 in
Latvia, 63 in Estonia and 51 in Lithuania.
58 Rimi supermarkets, 30 Rimi hypermarkets and 116 hard discount
stores (Supernetto in Latvia and Lithuania, Saastumarket in
Estonia). Rimi Baltic employs more than 10 000 people.

                         About Ahold

Headquartered in Amsterdam, Koninklijke Ahold N.V. --
http://www.ahold.com/-- retails food through supermarkets,
hypermarkets and discount stores in North and South America, and
Europe.  It has operations in Argentina.  The company's chain
stores include Stop & Shop, Giant, TOPS, Albert Heijn and
Bompreco.  Ahold also supplies food to restaurants, hotels,
healthcare institutions, government facilities, universities,
stadiums, and caterers.

                        *     *     *

As reported in the TCR-Europe on Dec. 22, 2006, Standard &
Poor's Ratings Services revised its outlook on the Dutch food
retailer and food service distributor Koninklijke Ahold N.V. to
positive from stable.  At the same time, the 'BB+/B' long- and
short-term corporate credit ratings were affirmed.

Moody's Investors Service and Standard and Poor's has assigned
low-B ratings to the company's 5.625% senior notes due 2007.
Also, the company's 5.875% senior unsubordinated notes due 2008
and 6.375% senior unsubordinated notes due 2007 carry Moody's,
S&P's and Fitch's low-B ratings.


TELEFONICA DE ARGENTINA: Launching Services in 2 Chubut Towns
-------------------------------------------------------------
Telefonica de Argentina SA will begin providing mobile telephony
coverage in two towns in the Chubut province by February, news
service Telcommunity reports.

Business News Americas relates that Telefonica de Argentina will
launch the service in Epuyen and El Hoyo through its mobile unit
Movistar Argentina.

Movistar Argentina has almost 10.5 million subscribers in
Argentina, BNamericas states.

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.


VALEANT PHARMACEUTICALS: Moody's Confirms B2 Corp. Family Rating
----------------------------------------------------------------
Moody's Investors Service confirmed the ratings of Valeant
Pharmaceuticals International (Valeant), including the B2
Corporate Family Rating, and concluded the rating review for
possible downgrade first initiated on October 23, 2006.
Valeant's rating outlook is now stable.

The rating action follows the company's recent filing of its
Form 10-Q for the period ended Sept. 30, 2006, and its amended
Form 10-K for the period ended Dec. 31, 2005.  The restatement
follows Valeant's review of its stock option granting practices.

In Moody's view, Valeant's restated financial statements had
minimal to no effect on previously reported revenue, cash flow,
cash balances, or debt.  Valeant's filing of its delinquent Form
10-Q alleviates Moody's concern about potential debt
acceleration that might have happened had Valeant not filed its
statements within 60 days of the trustees' declaration of a
notice of default.

Valeant's B2 Corporate Family Rating reflects its relatively
small scale as a specialty pharmaceutical manufacturer along
with its concentrated focus among three therapeutic categories -
Dermatology, Infectious Diseases, and Neurology.  Valeant's
scale, based on revenue, maps to the B category according to
Moody's Global Pharmaceutical Rating Methodology.

Moody's anticipates that the company's cash flow to debt ratios
for the next several years will remain reflective of a "B2"
rating based on the ranges specified in our Global
Pharmaceutical Rating Methodology. Although Valeant launched two
new products in 2006, Moody's believes that an improvement in
cash flow to debt could be delayed by the following challenges:

   (1) setbacks in the Viramidine clinical development program;

   (2) boosting sales of newly-launched products, such as
       Zelapar and Cesamet, without a substantial increase in
       promotional spending; and

   (3) finding suitable external partners in which the company
       can enter co-development agreements for several late-
       stage pipeline products.

To consider ratings upgrade, Moody's would expect CFO/Debt
sustained at approximately 15% (or higher) and FCF/Debt at
approximately 10%; these levels represent the high ends of the
"B" category outlined in our methodology.  Successful approval
and launch of Viramidine may be necessary for Valeant to achieve
these ratios.

Although not expected, downward rating pressure could result
under the following scenarios:

   (1) a decline in CFO/Debt to below 5%;

   (2) a significant negative development in the Viramadine
       clinical development program; or

   (3) a sizeable cash-financed acquisition that pressures
       the company's cash coverage of debt and cash flow
       to debt ratios.

Ratings confirmed:

   -- B2 Corporate Family Rating;

   -- B1 Probability of default rating; and

   -- Ba3 senior unsecured notes of US$300 million due 2011.

Moody's does not rate Valeant's 3% convertible subordinated
notes of US$240 million due 2010 or its 4% convertible
subordinated notes of us$240 million due 2013.

Headquartered in Aliso Viejo, California, Valeant
Pharmaceuticals International [NYSE: VRX]--
http://www.valeant.com/is a global specialty pharmaceutical
company. Valeant reported approximately US$650 million of net
product sales for the nine months ended September 30, 2006. The
Company has offices in Argentina.


* ARGENTINA: World Court Denies Uruguay's Plea to Halt Blockades
----------------------------------------------------------------
The International Court of Justice at The Hague denied Uruguay's
request to force Argentine pulp mill protesters to stop blocking
trhee access roads to Uruguay.

As previously reported, the construction of pulp mills along the
river bordering Uruguay and Argentina is causing
environmentalists to stage protests alleging environmental
damage.  The Argentine government brought the case to the
International Court of Justice earlier this year citing
violations to the 1975 Statute of the River Uruguay, which
states that all issues concerning the river must be agreed upon
by the two nations.  However, the court didn't find enough
evidence to support Uruguay's request to halt the pulp mills'
construction.  A final ruling about the lawfulness of the mills
is expected to take years.  Argentine protestors renewed their
protests after the World Bank decided to provide a loan to
Metsa-Botnia for the construction of the mill Fray Bentos.

According to the Court's ruling, the blockades are not harming
the rights claimed by Uruguay, the Voice of America News
relates.

The International Court of Justice is the highest court of the
United Nations established in 1946 to resolve disputes between
states.  The Court's rulings are final and not subject to
appeal.

                        *    *    *

Fitch Ratings assigned these ratings on Argentina:

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




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


COMPLETE RETREATS: Wants Court to Approve Intagio Settlement
------------------------------------------------------------
Complete Retreats LLC, its debtor-affiliates and Intagio
Corporation ask the U.S. Bankruptcy Court for the District of
Connecticut to approve a Settlement.

On behalf of Intagio, Louis J. Testa, Esq., at Neubert, Pepe &
Monteith, P.C., in New Haven, Connecticut, relates that Intagio
strongly disagrees with the Court's basis on overruling its
objection to the Debtors' request to sell substantially all of
their assets.  Consequently, Intagio has indicated to the
Debtors and Ultimate Resort LLC that it intends to appeal the
Sale Order.

Subsequent to the Sale Hearing, the Debtors, Ultimate and
Intagio, with the assistance of counsel for the Official
Committee of Unsecured Creditors, entered into negotiations for
purposes of settling all outstanding disputes between them with
respect to the Sale, Joel H. Levitin, Esq., at Dechert LLP, in
New York, tells the Court, on the Debtors' behalf.

Intagio, Ultimate, and the Debtors have agreed to a settlement
that would obviate Intagio's need to appeal the Sale Order and
resolve all issues among the parties, Mr. Levitin informs the
Court.

                   Terms of the Settlement

The Intagio Settlement provides that Ultimate and Intagio will
enter into a membership agreement and a media contract.  Under
the Membership Agreement, Intagio will receive a Lifetime
Corporate Membership in Ultimate Resort ELITE, along with credit
redeemable to pay for four calendar years of annual fees.  Under
the Media Contract, Intagio will provide Ultimate with media
agency services.

A full-text copy of the Intagio Membership Agreement is
available for free at http://ResearchArchives.com/t/s?18e4

A full-text copy of the Intagio Media Contract is available for
free at http://ResearchArchives.com/t/s?18e5

The Debtors and Intagio further agree that Claim No. 1752 for
US$1,754,122 will be reduced and allowed as an unsecured claim
for US$1,500,000, which will be the only claim Intagio will have
against the Debtors and their estates.  Intagio agrees to
withdraw Claim No.1349 for US$1,754,122.

Mr. Levitin asserts that the Intagio Settlement is appropriate
for these reasons:

   -- The significant cost and expense to be incurred by each
      party in the presence of material disputes of the law,
      facts and issues raised in Intagio's Objection, and the
      possibility of an appeal by Intagio;

   -- The future cost and expense to be borne by the Debtors'
      estates obviating the need to object to and litigate the
      nature and amount of Intagio's claim against the Debtors;
      and

   -- The delay and disruption in the administration of the
      bankruptcy estates.

No party-in-interest will suffer prejudice or injury as a result
of the Settlement and the Settlement does not create an undue
burden or hardship to the Debtors, Mr. Levitin maintains.

Intagio had asked the Court to extend the time for it to file a
notice of appeal from the Sale Order to the earlier of:

   (i) the date the Court denies the Joint Settlement Motion; or
  (ii) the effective date of the Settlement.

Mr. Testa relates that Intagio agrees not to file a notice of
appeal pending the Settlement's documentation if the deadline
were extended to not require it.

                  About Complete Retreats

Headquartered in Westport, Connecticut, Complete Retreats LLC
operates five-star hospitality and real estate management
businesses.  In addition to its mainline destination club
business, the Debtor also operates an air travel program for
destination club members, a villa business, luxury car rental
services, wine sales services, fine art sales program, and other
amenity programs for members.  Complete Retreats and its debtor-
affiliates filed for chapter 11 protection on July 23, 2006
(Bankr. D. Conn. Case No. 06-50245).  Nicholas H. Mancuso, Esq.
and Jeffrey K. Daman, Esq. at Dechert LLP represent the Debtors
in their restructuring efforts.  Michael J. Reilly, Esq., at
Bingham McCutchen LP, in Hartford, Connecticut, serves as
counsel to the Official Committee of Unsecured Creditors.  No
estimated assets have been listed in the Debtors' schedules,
however, the Debtors disclosed US$308,000,000 in total debts.
(Complete Retreats Bankruptcy News, Issue No. 20; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000).




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


BRUNSWICK REAL: Deadline for Proofs of Claim Filing Is April 25
---------------------------------------------------------------
Brunswick Real Estate Ltd.'s creditors are given until
April 25, 2007, to prove their claims to Edward Allanby, the
company's liquidator, or be excluded from receiving any
distribution or payment.

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

Brunswick Real's shareholders agreed on Jan. 16, 2007, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.

The liquidator can be reached at:

         Edward Allanby
         Suite One, No. 2 Reid Street
         Hamilton, Bermuda


CASTELLUM HOLDINGS: Proofs of Claim Must be Filed by Feb. 6
-----------------------------------------------------------
Castellum Holdings Ltd.'s creditors are given until
Feb. 6, 2007, to prove their claims to Jennifer Y. Fraser, the
company's liquidator, or be excluded from receiving any
distribution or payment.

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

Castellum Holdings' shareholders agreed on Jan. 20, 2007, to
place the company into voluntary liquidation under Bermuda's
Companies Act 1981.

The liquidator can be reached at:

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


CASTELLUM RE: Last Day to File Proofs of Claim Is on Feb. 5
-----------------------------------------------------------
Castellum Re Ltd.'s creditors are given until Feb. 5, 2007, to
prove their claims to Jennifer Y. Fraser, the company's
liquidator, or be excluded from receiving any distribution or
payment.

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

Castellum Re's shareholders agreed on Jan. 19, 2007, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.

The liquidator can be reached at:

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


EMERGENT GLOBAL: Last Day for Proofs of Claim Filing Is Feb. 22
---------------------------------------------------------------
Emergent Global Fund Ltd.'s creditors are given until
Feb. 22, 2007, to prove their claims to Peter Martin, the
company's liquidator, or be excluded from receiving any
distribution or payment.

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

Emergent Global's shareholders agreed on Jan. 17, 2007, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.

The liquidator can be reached at:

         Peter Martin
         c/o Thistle House, 4 Burnaby Street
         Hamilton, Bermuda


INTERNATIONAL MUSIC (11): Claims Filing Deadline Is on Feb. 22
--------------------------------------------------------------
International Music Tour (11) Ltd.'s creditors are given until
Feb. 22, 2007, to prove their claims to Kathy Willard, the
company's liquidator, or be excluded from receiving any
distribution or payment.

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

International Music's shareholders agreed on Jan. 16, 2007, to
place the company into voluntary liquidation under Bermuda's
Companies Act 1981.

The liquidator can be reached at:

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


SANTA CATALINA: Proofs of Claim Filing Is Until Feb. 5
------------------------------------------------------
Santa Catalina (Bermuda) Ltd.'s creditors are given until
Feb. 5, 2007, to prove their claims to Jennifer Y. Fraser, the
company's liquidator, or be excluded from receiving any
distribution or payment.

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

Santa Catalina's shareholders agreed on Jan. 16, 2007, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.

The liquidator can be reached at:

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


SCOTTISH RE: Terminates Amended & Restated Credit Agreement
-----------------------------------------------------------
The Amended and Restated Credit Agreement, dated July 14, 2005,
among Scottish Annuity & Life Insurance Company (Cayman) Ltd.,
Scottish Re (Dublin) Limited, Scottish Re (U.S.), Inc. and
Scottish Re Limited, and various financial institutions, as
lenders, and Bank of America, N.A., as administrative agent, was
terminated effective Jan. 19, 2007.  All outstanding letters of
credit issued under the Credit Agreement have been cancelled.

Bank of America, N.A. and certain of the lenders under the
Credit Agreement and their affiliates provide, and have from
time to time provided, commercial banking and other financial
services to Scottish Re Group Limited and its subsidiaries for
which they received customary fees and commissions.

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

                        *    *    *

As reported on Nov. 29, 2006, Moody's Investors Service
continued to review the ratings of Scottish Re Group Ltd. with
direction uncertain following the announcement by the company
that it has entered into an agreement to sell a majority stake
to MassMutual Capital Partners LLC, a member of the MassMutual
Financial Group and Cerberus Capital Management, L.P., a private
investment firm.

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

Standard & Poor's Ratings Services has also revised the
CreditWatch status of its ratings on Scottish Re Group Ltd.,
Scottish Re's operating companies, and dependent unwrapped
securitized deals to positive from negative.  Scottish Re has a
'CCC' counterparty credit rating, and Scottish Re's operating
companies have 'B+' counterparty credit and financial strength
ratings.  These ratings were placed on CreditWatch negative on
July 31, 2006, when Scottish Re announced poor second-quarter
results and that liquidity was tight.

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

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




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


PETROLEO BRASILEIRO: Fails to Win Bolivian Gas Supply Contract
--------------------------------------------------------------
Bolivia's state-owned oil firm Yacimientos Petroliferos Fiscales
Bolivianos has excluded Brazil's state oil Petroleo Brasileiro
and Repsol -- YPF SA's parent firm -- from contracts for the
supply of natural gas to Argentina, MarketWatch reports.

A Bolivian government official told MarketWatch that of the
eight qualified bidders, Yacimientos Petroliferos awarded the
contracts to:

          -- BP PLC-controlled Chaco,
          -- South Korea's Dong Won Corp.,
          -- US-based Vintage, and
          -- Argentina's Pluspetrol.

The official told Dow Jones Newswires that Repsol and Petroleo
Brasileiro were excluded from the deals because the government
was unsatisfied with the two firm's plans on investment and
production in Bolivia.

According to MarketWatch, the official said that the contracts
Yacimientos Petroliferos awarded are aimed at meeting the
requirements of a deal agreed to in October 2006 by the firm's
officials and their counterparts in Argentine state-run energy
company Enarsa.  Under the bi-national contract, supply will:

          -- remain at up to 7.7 million cubic meters per day
             this year,

          -- increase to between 7.7 million cubic meters per
             day and 16 million cubic meters per day during 2008
             and 2009, and

          -- reach up to 27.7 million cubic meters per day
             between 2010 and 2026.

However, the contracts awarded fail to fully cover those
amounts, and Yacimientos Petroliferos will launch at least one
more call for bids, MarketWatch notes, citing the official.

The official told MarketWatch that the offers submitted in
January 2007 provide gas from smaller fields that don't require
extensive production investment.  He said, "Once the big fields
have investment plans, Yacimientos Petroliferos sees the second
call for offers being more successful.  Similarly, if the second
call doesn't cover (the Argentine supply contract), we will
again wait and then hold a third call for bids."

Yacimientos Petroliferos expects to open a second call for
Argentina supply bids within six months, MarketWatch says,
citing the official.

The official told MarketWatch that the firms still have to
finish presenting to the government their plans to develop gas
reserves and to explore for additional reserves.  The exclusion
of Petroleo Brasileiro and Repsol from this week's round of
Argentine gas supply contract doesn't mean that they will
forever be rejected.

"Once they (Petroleo Brasileiro and Repsol) present their
investment plans in compliance with their new contracts, we
think they will present much larger volume offers in future
calls for offers, " MarketWatch says, citing the official.

                       About YPF SA

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

                About Petroleo Brasileiro

Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953.  The company explores, produces,
refines, transports, markets, 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.


YPF SA: Bolivia Excludes Parent from Natural Gas Supply Accords
---------------------------------------------------------------
Bolivia's state-owned oil firm Yacimientos Petroliferos Fiscales
Bolivianos has excluded Repsol -- YPF SA's parent firm -- and
Brazil's state oil Petroleo Brasileiro from contracts for the
supply of natural gas to Argentina, MarketWatch reports.

A Bolivian government official told MarketWatch that of the
eight qualified bidders, Yacimientos Petroliferos awarded the
contracts to:

          -- BP PLC-controlled Chaco,
          -- South Korea's Dong Won Corp.,
          -- US-based Vintage, and
          -- Argentina's Pluspetrol.

The official told Dow Jones Newswires that Repsol and Petroleo
Brasileiro were excluded from the deals because the government
was unsatisfied with the two firm's plans on investment and
production in Bolivia.

According to MarketWatch, the official said that the contracts
Yacimientos Petroliferos awarded are aimed at meeting the
requirements of a deal agreed to in October 2006 by the firm's
officials and their counterparts in Argentine state-run energy
company Enarsa.  Under the bi-national contract, supply will:

          -- remain at up to 7.7 million cubic meters per day
             this year,

          -- increase to between 7.7 million cubic meters per
             day and 16 million cubic meters per day during 2008
             and 2009, and

          -- reach up to 27.7 million cubic meters per day
             between 2010 and 2026.

However, the contracts awarded fail to fully cover those
amounts, and Yacimientos Petroliferos will launch at least one
more call for bids, MarketWatch notes, citing the official.

The official told MarketWatch that the offers submitted in
January 2007 provide gas from smaller fields that don't require
extensive production investment.  He said, "Once the big fields
have investment plans, Yacimientos Petroliferos sees the second
call for offers being more successful.  Similarly, if the second
call doesn't cover (the Argentine supply contract), we will
again wait and then hold a third call for bids."

Yacimientos Petroliferos expects to open a second call for
Argentina supply bids within six months, MarketWatch says,
citing the official.

The official told MarketWatch that the firms still have to
finish presenting to the government their plans to develop gas
reserves and to explore for additional reserves.  The exclusion
of Petroleo Brasileiro and Repsol from this week's round of
Argentine gas supply contract doesn't mean that they will
forever be rejected.

"Once they (Petroleo Brasileiro and Repsol) present their
investment plans in compliance with their new contracts, we
think they will present much larger volume offers in future
calls for offers, " MarketWatch says, citing the official.

                About Petroleo Brasileiro

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

                        About YPF SA

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

                        *    *    *

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

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

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

          -- Ba2 foreign currency senior unsecured rating;

Moody's said the outlook is negative.


* BOLIVIA: Set to Recover Gold, Silver & Zinc with Franklin
-----------------------------------------------------------
Franklin Mining, Inc., and its wholly owned subsidiary, Franklin
Mining, Bolivia SA, are set to begin retrieving gold, silver and
zinc under terms of a Comibol partnership agreement.  Franklin
Mining, Inc.'s partnership with Comibol was the first to be
signed with an American company since 1952.

          Metals Markets Continue Strong Performance

With Gold's seven week high and Tin's all time high, with
Silver's strength despite forecasts for a decline in demand and
with recent projections that China's Zinc consumption could rise
as much as 56% by 2010 -- total revenues and profits from both
the Cerro Rico and Pulacayo projects stand to increase
significantly as world-wide demand and pricing continue these
upward trends.

                    Cerro Rico de Potosi

Franklin's partnership agreement with Comibol to begin
redevelopment of the historic Cerro Rico de Potosi Silver Mine
promises to yield significant profits which will be shared
equally by Franklin and Comibol once Franklin's initial
investment has been repaid.  Reports provided by Comibol on
Franklin's assigned veins in the Cerro Rico have indicated
yields totaling 36,274,137 Troy ounces of silver; 586,117,434
pounds of Zinc; and 159,518,908 pounds of Tin. When the
partnership agreement was originally prepared, Franklin/Comibol
projected the total value of these five veins to be
approximately US$2.2 Billion.

                  Pulacayo Mining Fields

Franklin is also set to begin processing tailings found in the
Pulacayo Mining Fields.  Yields from these tailings deposits are
estimated to total 7,973,507 Troy ounces of Silver and 128,605
Troy ounces of Gold. At the time of this agreement's
preparation, recovery rates from this tailings field were
conservatively estimated at 60%, yielding approximately US$109
Million.  The pilot plant necessary to process tailings is now
in La Paz, Bolivia and ready to be relocated to the Pulacayo
work site.

                 About Franklin Mining, Inc.

Franklin Mining, Inc. has interests in the United States,
Argentina and Bolivia which include a wholly owned subsidiary,
Franklin Mining, Bolivia, as well as 51% interest in Franklin
Oil & Gas, Bolivia and 51% interest in Franklin Oil & Gas,
Argentina.

                        *    *    *

Fitch Ratings assigned these ratings on Bolivia:

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


* BOLIVIA: State Firm Awards Natural Gas Supply Contracts
---------------------------------------------------------
Bolivia's state-owned oil company Yacimientos Petroliferos
Fiscales Bolivianos has awarded contracts for the supply of
natural gas to Argentina, MarketWatch reports.

A Bolivian government official told MarketWatch that of the
eight qualified bidders, Yacimientos Petroliferos awarded the
contracts to:

          -- BP PLC-controlled Chaco,
          -- South Korea's Dong Won Corp.,
          -- US-based Vintage, and
          -- Argentina's Pluspetrol.

MarketWatch relates that Yacimientos Petroliferos has excluded
Repsol YPF and Petroleo Brasileiro from the deals.

The official told Dow Jones Newswires that Repsol and Petroleo
Brasileiro were excluded from the deals because the government
was unsatisfied with the two firm's plans on investment and
production in Bolivia.

According to MarketWatch, the official said that the contracts
Yacimientos Petroliferos awarded are aimed at meeting the
requirements of a deal agreed to in October 2006 by the firm's
officials and their counterparts in Argentine state-run energy
company Enarsa.  Under the bi-national contract, supply will:

          -- remain at up to 7.7 million cubic meters per day
             this year,

          -- increase to between 7.7 million cubic meters per
             day and 16 million cubic meters per day during 2008
             and 2009, and

          -- reach up to 27.7 million cubic meters per day
             between 2010 and 2026.

However, the contracts awarded fail to fully cover those
amounts, and Yacimientos Petroliferos will launch at least one
more call for bids, MarketWatch notes, citing the official.

The official told MarketWatch that the offers submitted in
January 2007 provide gas from smaller fields that don't require
extensive production investment.  He said, "Once the big fields
have investment plans, Yacimientos Petroliferos sees the second
call for offers being more successful.  Similarly, if the second
call doesn't cover (the Argentine supply contract), we will
again wait and then hold a third call for bids."

Yacimientos Petroliferos expects to open a second call for
Argentina supply bids within six months, MarketWatch says,
citing the official.

The official told MarketWatch that the firms still have to
finish presenting to the government their plans to develop gas
reserves and to explore for additional reserves.  The exclusion
of Petroleo Brasileiro and Repsol from this week's round of
Argentine gas supply contract doesn't mean that they will
forever be rejected.

"Once they (Petroleo Brasileiro and Repsol) present their
investment plans in compliance with their new contracts, we
think they will present much larger volume offers in future
calls for offers, " MarketWatch says, citing the official.

                        *    *    *

Fitch Ratings assigned these ratings on Bolivia:

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




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


ALCATEL-LUCENT: Deploys Mobile Solution to Vodafone Netherlands
---------------------------------------------------------------
Alcatel-Lucent revealed that mobile operator Vodafone
Netherlands has deployed a network-based Alcatel-Lucent
enterprise solution to enable Vodafone Netherlands to expand the
capabilities of its Wireless Office service.

The Alcatel-Lucent solution provides Vodafone Netherlands with
an opportunity that both addresses the demands of enterprises
and transforms the way employees communicate.  With this
network-based solution, Alcatel-Lucent offers enterprises an
alternative choice to meet their communications and business
needs.  Employees benefit from mobility while having access to
their company communications resources, which can increase
productivity by eliminating the need to be in the office to
access fixed-line PBX or Centrex communications services.

In addition, Alcatel-Lucent is offering network integration
services, including design and engineering support, for the
enterprise solution being offered to Vodafone.

Vodafone's enhanced Wireless Office Service is a network-based
IP Centrex solution that enables business customers to use
mobile phones to access communications features that previously
would only have been available via fixed telephones in a
company's offices.  Features that Vodafone is initially making
available on mobile phones are extension dialing, hunt groups to
route a call to an available line, placing calls in queue,
conferencing, and call transfer.  In addition, the solution
comprises a receptionist switchboard for handling calls to a
company's prime number, geographical numbers, company numbers
(088) and Call Management Software for easy call management by
end users.

"For business customers it's critical to be able to communicate
anywhere anytime.  Vodafone has acknowledged this and has
introduced its Wireless Office service, which provides the best
of both worlds: the functionality of fixed communications with
the flexibility of mobile communications," said Jeroen Hoencamp,
Director Enterprise Business Unit at Vodafone Netherlands.
"Vodafone's mobile plus strategic objective is to innovate and
deliver on customers total communications needs. Alcatel-Lucent
has helped us establish the new service, which is a next step in
realizing our strategic objective for the enterprise market."

"There is a new business generation that demands services that
match their professional and personal lifestyles, and it is our
mission to help service providers meet these customers' needs,"
said Luc Defieuw, head of Alcatel-Lucent's activities in the
Benelux, Nordic and Baltic countries.  "Vodafone now is in a
unique position to offer its customers a full mobile solution
for company communications."

Alcatel-Lucent's mobile enterprise voice solution for Vodafone
includes the Alcatel-Lucent Feature Server, Alcatel-Lucent
Network Controller, Alcatel-Lucent Media Gateway, Alcatel-Lucent
Firewall Brick and Alcatel-Lucent VitalSuite Performance
Management Software.

                About Vodafone Libertel N.V

Vodafone is one of the largest mobile telecommunications
companies in the Netherlands and is part of the worldwide
Vodafone Group, the world's leading telecommunications company
for mobile telephony with over 191 million proportionate
customers on five continents.  The Vodafone Group has holdings
in the share capital of mobile operators in 26 countries and
collaborative arrangements with partner networks in 34
countries.

                    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.

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 preferred, 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-
U.S. 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.


ARVINMERITOR INC: S&P Lowers Corp. Credit Rating to BB- from BB
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on
automotive components supplier ArvinMeritor Inc., including its
long-term corporate credit rating to 'BB-' from 'BB'.

In addition, Standard & Poor's removed the ratings from
CreditWatch, where they had been placed on Sept. 26, 2006, with
negative implications.  The 'B-1' short-term corporate credit
rating on the Troy, Mich.-based company was affirmed.  The
outlook is stable.

"The downgrade reflects our expectations that ARM's financial
profile will remain weak during the next fiscal year or perhaps
longer, as it continues to face challenges in both its light
vehicle and commercial vehicle segments.  However, the stable
outlook incorporates the company's success in nearly eliminating
debt maturities until after 2011, adequate available sources of
liquidity, and expectations for some improvements in
profitability and cash flow generation due to enhanced
management focus," said Standard & Poor's credit analyst Robert
Schulz.

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


BANCO BMC: Banco Bradesco to Acquire Bank & Subsidiaries
--------------------------------------------------------
Banco Bradesco S.A signed on Jan. 23, 2007, with the controlling
stockholders of Banco BMC S.A., a "Private Instrument for
Commitment of Merger of Stocks and Other Covenants," for the
acquisition of BMC and its subsidiaries BMC Asset Management
Ltda. -- Distribuidora de Titulos e Valores Mobiliarios, BMC
Previdencia Privada S.A. and Credicerto Promotora de Vendas
Ltda.

The operation comprises the transfer to Bradesco of 100% of the
stocks representing BMC's social capital.  The payment will be
made upon the delivery, to BMC's stockholders, of stocks issued
by Bradesco corresponding to approximately 0.94% of its capital
stock, which will be increased by BRl800 million.

The stocks to be issued and attributed to BMC's stockholders
will be issued in a Bradesco Special Stockholders' Meeting to be
held in the closing of the operation, when BMC will become a
Bradesco fully-owned subsidiary.

With almost 68 years of existence, BMC is one of the two largest
private banks operating in payroll deductible loans for retirees
and pensioners of Brazil's National Social Security Institute or
INSS, counting on a total distribution network of around 7,000
agents, through 749 correspondent banks with nationwide
presence, including areas with extremely low access to banking
services.

From April to December 2006, BMC was, once again, one of the
leaders in the INSS payroll deductible loan market, with a
BRL427 million portfolio growth (69%) and capturing up to 10% of
the market's growth 1.

BMC has a credit portfolio of approximately BRL2 billion as of
Sept. 2, 2006, 58% of which are payroll discount loans and also
offers financing/leasing of vehicles (18% of its credit
portfolio) as well as commercial loans to small and medium
enterprises (24% of the loan portfolio), originated by its
network of 14 branches.  Total assets of BMC reach BRL2,345
million and stockholder's equity of BRL278 million.

BMC counts with high levels of operating excellence, given its
differentiated technological framework, which enables the
management of relationships and of the payroll loan portfolio,
in addition to its wide experience and know-how of the operating
risks related to this segment.

BMC will be able to access both Bradesco's funding and wide
range of agreements with public and private institutions, which
will further increase its already strong leadership in this
segment.  BMC's correspondent banks will also have access to
Bradesco's entire line of products to offer its clients.

The merger will provide Bradesco with an increasing platform in
Brazil's most prominent segment of the consumer financing
market, as well as with a strengthened presence in the financing
of SMEs.

The completion of the operation is subject to the approval by
the relevant authorities and to the results of the due diligence
process, estimated to be concluded during the first half of
2007.

All services offered by BMC to its clients will continue to be
carried out as usual and independently, with the maintenance of
the current management and customer service structure,
respecting its characteristics and specialization.

BMC's stockholders counted on the financial advisory services of
Goldman Sachs and judicial advisory services of Mattos Filho,
Veiga Filho, Marrey Jr. and Quiroga.  Bradesco counted on
financial advisory services of BBI Bradesco - Banco de
Investimento and legal advisory services of Xavier, Bernardes,
Braganca.

                   About Banco Bradesco

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

                        *    *    *

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

Fitch has also taken these rating actions on Banco Bradesco:

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

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

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

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

   -- Support rating affirmed at '4';

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

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

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

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

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

Moody's said the ratings outlook is stable.

                        *    *    *

As reported in the Troubled Company Reporter on Nov. 30, 2006,
Moody's Investors Service assigned a bank financial strength
rating of D- to Banco BMC S.A.  Moody's also assigned long- and
short-term foreign- and local-currency deposit ratings of Ba3
and Not Prime, and long- and short-term Brazil national scale
deposit ratings of A3.br and BR-2.  Moody's said the outlook on
all these ratings is stable.


BANCO BMC: Bradesco Merger Cues Fitch to Put Ratings on WatchPos
----------------------------------------------------------------
Fitch Ratings has placed these ratings assigned to Banco BMC SA
on Rating Watch Positive:

   -- Local foreign currency long-term Issuer Default Rating
      'B-';

   -- Foreign currency long-term IDR 'B-';

   -- Local currency short-term 'B';

   -- Fixed-rate notes issuance maturing 2008 'B-/RR4';

   -- Support '5';

   -- National Short-Term rating 'F3(bra)'; and

   -- National long-term rating 'BBB-(bra)'.

In addition, Fitch affirmed BMC's:

   -- Individual rating at 'D/E'; and
   -- Foreign currency short-term at 'B'.

At the same time, Fitch also affirmed these IDRs on Bradesco,
with a Stable Outlook:

   -- Long-term foreign currency at 'BB+';
   -- Long-term local currency at 'BBB-';
   -- Individual rating at 'B/C';
   -- Local currency short-term at 'F3';
   -- Short-term at 'B';
   -- Support rating of '4';
   -- National short-term rating 'F1+(bra)'; and
   -- National long-term rating 'AA+(bra)'.

The Positive Watch reflects the private instrument for
commitment of stocks and other covenants signed by Banco
Bradesco SA, focusing on the acquisition of total stocks of BMC
and its subsidiaries -- BMC Asset Management DTVM SA, BMC
Previdencia Privada SA, and of BMC's sales promoter company
Credicerto Promotora de Vendas Ltda.  The total amount of the
deal was BRL800 million, exclusively comprising an exchange of
stocks, which will be as follows:

   -- BRL600 million in the act of the sale and BRL200
      million depending on the performance of BMC in the
      next two years; and

   -- during this period, Bradesco will manage BMC as an
      independent structure, maintaining its main executives.

The conclusion of this deal still depends on the due diligence
process from Bradesco on the financial companies of BMC Group
and on the approval of authorities.  Further rating actions will
be made only after the end of these processes.

The ratings of BMC reflect the successful restructuring of the
bank after 2004 and an appropriate strategy, which has increased
the bank's liquidity and funding sources and led to improved
efficiency ratios.  The ratings also reflect the low quality of
BMC's assets and capitalization compared with its peers, its
lower profitability after eliminating the effect of an
extraordinary item, and its small size.

In addition, the bank has shown a greater concentration of its
revenues in consignment lending.  Controlled by Jayme Pinheiro,
BMC's main focus is consignment lending to retirees and
pensioners of Instituto Nacional do Seguro Social, the Brazilian
social security agency.  With total assets of BRL2.1 billion and
equity of BRL264.8 million as per June 2006, it is also active
in consumer vehicle financing and loans to medium-sized
companies, secured by receivables.

After the conclusion of the deal, BMC will be a full subsidiary
of Bradesco.  Fitch expects BMC to gain scale by reducing
administrative and funding costs and by improving synergy with
the new owner, since it will be able to sell a more ample
product base to its clients.

Bradesco showed total assets of BRL232.9 billion and equity of
BRL21.5 billion as of June 2006.  Bradesco's local currency IDR
is above Brazil's IDR and its National ratings reflect a broad-
based national franchise with a strong track record of
consistent results through turbulent economic cycles, achieved
thanks to solid management of a diversified business and
customer base.  The foreign currency ratings are at Brazil's
country ceiling.

Bradesco's Individual rating reflects:

   -- steady improvement in performance since mid-2004, driven
      by loan growth in consumer finance and SME lending with
      controlled credit losses;

   -- a relentless drive to improve cost efficiencies and
      cross selling among all its business lines; and

   -- a reduction in exposure to Brazilian federal government
      debt.

In Fitch's view, Bradesco's strategic goals are clearly defined
and achievable, management is conservative, well-tried risk
controls are in place, liquidity is ample, and consistent and
improving profitability ensures adequate capitalization.
Bradesco's diversified revenue stream is a positive, with strong
contributions from fees and insurance.  After concluding the
deal, Fitch expects Bradesco to reveal deeper penetration on the
consignment business in Brazil, further diversifying revenues
and adding value to its staff, given BMC's knowledge of this
niche.

Fitch's national ratings provide a relative measure of
creditworthiness for rated entities in countries where the
sovereign's foreign and local currency ratings are below 'AAA'.
National ratings are not internationally comparable since the
best relative risk within a country is rated 'AAA' and other
credits are rated only relative to this risk.  They are
signified by the addition of an identifier, for the country
concerned, such as 'AAA' for national ratings in Brazil.


BANCO BMG: Posts BRL263 Million Net Profits in 2006
---------------------------------------------------
Banco BMG told Business News Americas that its net profits
decreased 30.7% to BRL263 million in 2006, from BRL380 million
in 2005.

According to BNamericas, Banco BMG reported return on equity of
26.2% in 2006, compared with 47.0% in 2005.

However, the lower earnings last year had more to do with an
exceptional 2005 than a disappointing 2006, BNamericas notes,
citing Banco BMG's Vice President Marcio Alaor.

Mr. Alaor told BNamericas, "Two thousand five was an atypical
year.  All the banks that operated in the new market of payroll
and retirement loans increased their loan books.  However, the
volume of new payroll and retirement loans was much lower in
2006."

BNamericas underscores that Banco BMG's lending increased 18.1%
to BRL8.63 billion by the end of 2006, compared with the same
time in 2005.  Payroll and retirement loans grew 14.1% to
BRL7.53 billion.  New loans totaled BRL3.71 billion, with 74.3%,
or BRL2.76 billion coming from new payroll and retirement loans
granted in 2006.

The report says that Banco BMG granted:

          -- 48.4% of new payroll and retirement loans to
             pensioners from the Brazilian government's social
             security system for private sector workers or INSS,

          -- 42.0% to public sector workers, and

          -- 9.60% to private sector workers.

Mr. Alaor told BNamericas, "Payroll and retirement loans are our
engine of growth and will continue to be.  Roughly 36% of INSS
pensioners have already taken retirement loans and we expect it
to reach 42-45% this year and then rise to 50% by 2008."

Payroll and retirement loans are deducted directly from
paychecks and social security benefits and allowed Banco BMG to
post a non-performing loan ratio around 2.00% in 2006 for loans
overdue more than 15 days, BNamericas says, citing Alaor.

BNamericas relates that Banco BMG's other lending activities
include:

          -- vehicle financing,
          -- handling loans from BNDES, and
          -- leasing operations, among others.

According to the report, Banco BMG expects total lending to
increase 4.31% to BRL9.00 billion in 2007.

BNamericas emphasizes Banco BMG reported BRL1.00 billion in
total assets last year.

Banco BMG was involved in a government bribery scandal in 2006,
giving rise to allegations that the bank had managed to corner a
large share of the retirement loan market as a favor from the
government, BNamericas reports.

The scandal had stopped and Banco BMG's reputation had
completely recovered, BNamericas states, citing Mr. Alaor.

Banco BMG is the banking arm of Grupo BMG, which also has real
estate, food manufacturing and agroindustry holdings.  The bank
is a niche player focused on loans to civil servants, with
repayments taken monthly from payrolls.  BMG operates mainly
through in-house representatives in state companies.  It also
offers leasing and asset management services.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Sept. 5, 2006, Moody's Investors Service upgraded Banco BMG SA's
long-term foreign currency deposits to Ba3, from B1.  The rating
outlook is stable.


BANCO BRADESCO: Paying Interest on Own Capital on March 1
---------------------------------------------------------
Banco Bradesco S.A. will pay on March 1, 2007, Interest on Own
Capital related to the month of February 2007, in the amount of
BRL0.032775000 per common stock and BRL0.036052500 per preferred
stock to the stockholders registered in the company's records on
Feb. 1, 2007.

The payment, net of the withholding income tax of 15%, except
for legal entity stockholders exempted from the referred
taxation, which will receive for the stated amount, will be made
through the net amount of BRL0.027858750 per common stock and
BRL0.030644625 per preferred stock, as follows:

   -- credit in the current account informed by the stockholder;

   -- the stockholders who do not inform their banking data or
      do not hold a current account in a Financial Institution
      must go to a Bradesco Branch on their preference having
      their identification document and the "Notice For Receipt
      of Earnings from Book-Entry Stocks," sent by mail to those
      having their address updated in the company's records;

   -- to those with stocks held on custody with the CBLC --
      Companhia Brasileira de Liquidacao e Custodia -- the
      payment of interest will be made to CBLC, which will
      transfer them to the respective stockholders through
      the Depository Agents.

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

                        *    *    *

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

Fitch has also taken these rating actions on Banco Bradesco:

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

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

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

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

   -- Support rating affirmed at '4';

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

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

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

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

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

Moody's said the ratings outlook is stable.


BANCO BRADESCO: Inks Pact to Acquire Banco BMC & Subsidiaries
-------------------------------------------------------------
Banco Bradesco S.A signed on Jan. 23, 2007, with the controlling
stockholders of Banco BMC S.A., a "Private Instrument for
Commitment of Merger of Stocks and Other Covenants," for the
acquisition of BMC and its subsidiaries BMC Asset Management
Ltda. -- Distribuidora de Titulos e Valores Mobiliarios, BMC
Previdencia Privada S.A. and Credicerto Promotora de Vendas
Ltda.

The operation comprises the transfer to Bradesco of 100% of the
stocks representing BMC's social capital.  The payment will be
made upon the delivery, to BMC's stockholders, of stocks issued
by Bradesco corresponding to approximately 0.94% of its capital
stock, which will be increased by BRl800 million.

The stocks to be issued and attributed to BMC's stockholders
will be issued in a Bradesco Special Stockholders' Meeting to be
held in the closing of the operation, when BMC will become a
Bradesco fully-owned subsidiary.

With almost 68 years of existence, BMC is one of the two largest
private banks operating in payroll deductible loans for retirees
and pensioners of Brazil's National Social Security Institute or
INSS, counting on a total distribution network of around 7,000
agents, through 749 correspondent banks with nationwide
presence, including areas with extremely low access to banking
services.

From April to December 2006, BMC was, once again, one of the
leaders in the INSS payroll deductible loan market, with a
BRL427 million portfolio growth (69%) and capturing up to 10% of
the market's growth 1.

BMC has a credit portfolio of approximately BRL2 billion as of
Sept. 2, 2006, 58% of which are payroll discount loans and also
offers financing/leasing of vehicles (18% of its credit
portfolio) as well as commercial loans to small and medium
enterprises (24% of the loan portfolio), originated by its
network of 14 branches.  Total assets of BMC reach BRL2,345
million and stockholder's equity of BRL278 million.

BMC counts with high levels of operating excellence, given its
differentiated technological framework, which enables the
management of relationships and of the payroll loan portfolio,
in addition to its wide experience and know-how of the operating
risks related to this segment.

BMC will be able to access both Bradesco's funding and wide
range of agreements with public and private institutions, which
will further increase its already strong leadership in this
segment.  BMC's correspondent banks will also have access to
Bradesco's entire line of products to offer its clients.

The merger will provide Bradesco with an increasing platform in
Brazil's most prominent segment of the consumer financing
market, as well as with a strengthened presence in the financing
of SMEs.

The completion of the operation is subject to the approval by
the relevant authorities and to the results of the due diligence
process, estimated to be concluded during the first half of
2007.

All services offered by BMC to its clients will continue to be
carried out as usual and independently, with the maintenance of
the current management and customer service structure,
respecting its characteristics and specialization.

BMC's stockholders counted on the financial advisory services of
Goldman Sachs and judicial advisory services of Mattos Filho,
Veiga Filho, Marrey Jr. and Quiroga.  Bradesco counted on
financial advisory services of BBI Bradesco - Banco de
Investimento and legal advisory services of Xavier, Bernardes,
Braganca.

                    About Banco Bradesco

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

                        *    *    *

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

Fitch has also taken these rating actions on Banco Bradesco:

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

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

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

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

   -- Support rating affirmed at '4';

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

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

As reported on Nov. 30, 2006, Moody's Investors Service upgraded
these ratings of Banco Bradesco SA:

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

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

Moody's said the ratings outlook is stable.


BANCO BRADESCO: Fitch Affirms BB+ Foreign Curr. Issuer Rating
-------------------------------------------------------------
Fitch Ratings has placed these ratings assigned to Banco BMC SA
on Rating Watch Positive:

   -- Local foreign currency long-term Issuer Default Rating
      'B-';

   -- Foreign currency long-term IDR 'B-';

   -- Local currency short-term 'B';

   -- Fixed-rate notes issuance maturing 2008 'B-/RR4';

   -- Support '5';

   -- National Short-Term rating 'F3(bra)'; and

   -- National long-term rating 'BBB-(bra)'.


In addition, Fitch affirmed BMC's:

   -- Individual rating at 'D/E'; and
   -- Foreign currency short-term at 'B'.

At the same time, Fitch also affirmed these IDRs on Bradesco,
with a Stable Outlook:

   -- Long-term foreign currency at 'BB+';
   -- Long-term local currency at 'BBB-';
   -- Individual rating at 'B/C';
   -- Local currency short-term at 'F3';
   -- Short-term at 'B';
   -- Support rating of '4';
   -- National short-term rating 'F1+(bra)'; and
   -- National long-term rating 'AA+(bra)'.

The Positive Watch reflects the private instrument for
commitment of stocks and other covenants signed by Banco
Bradesco SA, focusing on the acquisition of total stocks of BMC
and its subsidiaries -- BMC Asset Management DTVM SA, BMC
Previdencia Privada SA, and of BMC's sales promoter company
Credicerto Promotora de Vendas Ltda.  The total amount of the
deal was BRL800 million, exclusively comprising an exchange of
stocks, which will be as follows:

   -- BRL600 million in the act of the sale and BRL200
      million depending on the performance of BMC in the
      next two years; and

   -- during this period, Bradesco will manage BMC as an
      independent structure, maintaining its main executives.

The conclusion of this deal still depends on the due diligence
process from Bradesco on the financial companies of BMC Group
and on the approval of authorities.  Further rating actions will
be made only after the end of these processes.

The ratings of BMC reflect the successful restructuring of the
bank after 2004 and an appropriate strategy, which has increased
the bank's liquidity and funding sources and led to improved
efficiency ratios. The ratings also reflect the low quality of
BMC's assets and capitalization compared with its peers, its
lower profitability after eliminating the effect of an
extraordinary item, and its small size.

In addition, the bank has shown a greater concentration of its
revenues in consignment lending.  Controlled by Jayme Pinheiro,
BMC's main focus is consignment lending to retirees and
pensioners of Instituto Nacional do Seguro Social (INSS), the
Brazilian social security agency.  With total assets of BRL2.1
billion and equity of BRL264.8 million as per June 2006, it is
also active in consumer vehicle financing and loans to medium-
sized companies, secured by receivables.

After the conclusion of the deal, BMC will be a full subsidiary
of Bradesco.  Fitch expects BMC to gain scale by reducing
administrative and funding costs and by improving synergy with
the new owner, since it will be able to sell a more ample
product base to its clients.

Bradesco showed total assets of BRL232.9 billion and equity of
BRL21.5 billion as of June 2006.  Bradesco's local currency IDR
is above Brazil's IDR and its National ratings reflect a broad-
based national franchise with a strong track record of
consistent results through turbulent economic cycles, achieved
thanks to solid management of a diversified business and
customer base.  The foreign currency ratings are at Brazil's
country ceiling.

Bradesco's Individual rating reflects:

   -- steady improvement in performance since mid-2004, driven
      by loan growth in consumer finance and SME lending with
      controlled credit losses;

   -- a relentless drive to improve cost efficiencies and
      cross selling among all its business lines; and

   -- a reduction in exposure to Brazilian federal government
      debt.

In Fitch's view, Bradesco's strategic goals are clearly defined
and achievable, management is conservative, well-tried risk
controls are in place, liquidity is ample, and consistent and
improving profitability ensures adequate capitalization.
Bradesco's diversified revenue stream is a positive, with strong
contributions from fees and insurance.  After concluding the
deal, Fitch expects Bradesco to reveal deeper penetration on the
consignment business in Brazil, further diversifying revenues
and adding value to its staff, given BMC's knowledge of this
niche.

Fitch's national ratings provide a relative measure of
creditworthiness for rated entities in countries where the
sovereign's foreign and local currency ratings are below 'AAA'.
National ratings are not internationally comparable since the
best relative risk within a country is rated 'AAA' and other
credits are rated only relative to this risk.  They are
signified by the addition of an identifier, for the country
concerned, such as 'AAA' for national ratings in Brazil.


BANCO NACIONAL: Prioritizing Improvements to Sanitation Firms
-------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social SA has
confirmed to Business News Americas that future investments will
prioritize improvements to state sanitation firms' operations.

Banco Nacional's President Demian Fiocca told reporters that the
bank will provide credit to the private sector in the electric
power and logistics sector.  However, to see these sectors
advance, Brazil's basic sanitation network needs developing.

Mr. Fiocca commented to BNamericas, "Everyone knows that the big
cities have serious sanitation deficiencies.  The companies
exist [but] the task is to draw up a plan, enable financing and
improve their management."

Elvio Gaspar, director of Banco Nacional's social inclusion
department, told BNamericas that the problems facing the sector
are:

          -- shortage of resources,
          -- lack of plans, and
          -- administrative issues.

BNamericas relates that Banco Nacional will develop a program
designed specifically to boost the administration of state waste
and water treatment firms and allow them to obtain resources
independently.

Published reports say that measures aimed at increasing
investment in sanitation include the approval of the sanitation
law on Jan. 5 and the announcement of the government's growth
acceleration plan on Jan. 22.  However, water industry chiefs
think there are still obstacles to investment.

Paulo Godoy, president of Abdib or the infrastructure and basic
industries association, told BNamericas, "Application of the
resources depends on the approval of the regulatory framework."

According to reports, Carlos Henrique Cruz Lima -- president of
Abcon, Brazil's water and sewerage concessionaires association -
- thinks that the necessary investment of BRL180 billion over
the next 20 years to provide services to the entire population
will be achieved.

About 50% of Brazilians have access to drainage services, while
85% receive treated water, BNamericas states, citing Mr. Lima.

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/--


METSO OYJ: Unit to Supply Equipment to Alcoa in Brazil
------------------------------------------------------
Metso Minerals, a unit of Metso Oyj, will supply bulk materials
handling equipment to Alcoa for its Juruti Mine in Para state,
northern Brazil.  The delivery will be completed by the end of
2007.  The value of the order is approximately EUR35 million.
The order was included in the fourth quarter order backlog in
2006.

The order comprises one ship loader, three stackers, one
reclaimer, two apron feeders, five vibrating screens, one
railcar dumper and conveying systems.  The order also includes
technical erection assistance and a technical supervision of
operations for 2 years after the start up of the plant.

Metso's solution is for a new bauxite processing plant.  The
Juruti Mine will supply bauxite to the Alumar Refinery.  Once
completed, the processing plant will bring a major competitive
advantage to Alcoa.

Alcoa is the world's leader in aluminum smelting capacity, and
the world's second largest producer of aluminum.  The company
has 129,000 employees in 43 countries.  In Brazil, Alcoa has
eight production facilities.

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.


PETROLEO BRASILEIRO: Petros Boosting Private Sector Investments
---------------------------------------------------------------
Wagner Pinheiro -- president of Petros, the pension fund for
Petroleo Brasileiro's workers -- told Agencia Estado that the
firm wants to increase private securities investments to up to
BRL5.00 billion from BRL3.00 billion.

Petros will likely invest in receivables funds, among other
instruments, to meet the minimum targets to pay pensions to its
members in the current climate of dropping interest rates,
BNamericas relates, citing Mr. Pinheiro.

BNamericas underscores that Petros will reduce by BRL950 million
the BRL5.00 billion being invested in fixed income and redirect
them toward investments in:

          -- infrastructure,

          -- housing, and

          -- shares in companies with good corporate governance
             and sustainability practices.

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.


SANTANDER BANESPA: Parent to Give 100 Shares to Each Employee
-------------------------------------------------------------
Published reports say that Santander, Banco Santander Banespa's
parent firm, will give 100 shares to each of its roughly 130,000
workers worldwide as part of its 150th anniversary.

Business News Americas relates that in Brazil, Santander employs
almost 22,000 people.

Meanwhile, Santander has reiterated that it won't sell Santander
Banespa, Santander Latin America director Fernando Luzon told
Agencia Estado.

As reported in the Troubled Company Reporter-Latin America on
Jan. 15, 2007, Santander Banespa denied rumors that it is about
to be sold to Banco Bradesco.  According to analysts, Santander
lost interest in the Brazilian market after handing over control
of the Sao Paulo public sector payroll to Nossa Caixa on Jan. 1
under an accord reached when Santander acquired former Sao Paulo
state bank Banespa in November 2000.  However, Santander Banespa
Vice President Miguel Jorge said, "We've made it clear several
times there are no operations in Latin America without a strong
presence in Brazil.  Brazilian banks are not used to
competition."

"Leaving Brazil after the investments made to buy Banespa would
be a failure," Mr. Luzon told Agencia Estado.

The Santander Banespa group is comprised of Santander Brasil,
Santander, Santander Meridional and Banespa, and is a subsidiary
of Spanish financial group Grupo Santander.  Santander Banespa
is the biggest foreign-owned bank in Brazil and the fourth
largest on the overall ranking for private banks.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Nov. 27, 2006, Standard & Poor's Ratings Services maintained its
'BB' ratings on both of Banco Santander Banespa SA's foreign and
local currency counterparty credit ratings.

   -- Foreign currency counterparty credit rating

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

   -- Local currency counterparty credit rating

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

   -- Brazil national scale rating

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




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


BARRAMUNDI FUND: Final Shareholders Meeting Is Set for Jan. 29
--------------------------------------------------------------
Cayman Islands Barramundi Funds's final shareholders meeting
will be at 6:00 p.m. on Jan. 29, 2007, at:

          Ogier, Attorneys
          Queensgate House
          South Church Street
          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:

          Sophie Ann Gray
          Ogier, Attorneys
          Queensgate House
          South Church Street
          Grand Cayman, Cayman Islands


CREDIPIA 2004: Shareholders to Gather for Jan. 29 Final Meeting
---------------------------------------------------------------
Credipia 2004 International Ltd.'s final shareholders meeting
will be at 10:00 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 Ltd. Walker House
           87 Mary Street, George Town
           Grand Cayman, Cayman Islands


DAVINCI OFFICE: Calls Shareholders for Final Meeting on Jan. 29
---------------------------------------------------------------
Davinci Office Fund One Ltd.'s final shareholders meeting will
be at 12:00 noon 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


E*TRADE ABS: Calls Shareholders for Final Meeting on Jan. 29
------------------------------------------------------------
E*Trade ABS CDO II, Ltd.'s final shareholders meeting will be at
9:00 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 Ltd. Walker House
           87 Mary Street, George Town
           Grand Cayman, Cayman Islands


EULER CAT: Shareholders to Convene for Final Meeting on Jan. 29
---------------------------------------------------------------
Euler Cat Bond Fund, Ltd.'s final shareholders meeting will be
at 11:30 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 Ltd. Walker House
           87 Mary Street, George Town
           Grand Cayman, Cayman Islands


HYUNDAI CAPITAL: Final General Meeting Is Set for Jan. 29
---------------------------------------------------------
Hyundai Capital Auto Funding II Ltd.'s final shareholders
meeting will be at 11:00 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 Ltd. Walker House
           87 Mary Street, George Town
           Grand Cayman, Cayman Islands


LIONS GLOBAL: Invites Shareholders for Final Meeting on Jan. 29
---------------------------------------------------------------
Lions Global Corp.'s final shareholders meeting will be at 12:30
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
           Maples Finance Ltd.
           P.O. Box 1093,George Town
           Grand Cayman, Cayman Islands


ONE'S MALL: Calls Shareholders for Final Meeting on Jan. 29
-----------------------------------------------------------
One's Mall Investors, Ltd.'s final shareholders meeting will be
at 1:30 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 Ltd. Walker House
           67 Mary Street, George Town
           Grand Cayman, Cayman Islands


REFLECTION LTD: Final Shareholders Meeting Is on March 11
---------------------------------------------------------
Reflection Ltd.'s final shareholders meeting will be at 12 noon
on March. 11, 2007, at:

          MBT Trustees (Cayman) Ltd.
          3rd Floor, Piccadilly Center
          Elgin Avenue George Town
          Grand Cayman, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

           Cherrie Graham
           P.O. Box 30622
           Grand Cayman, Cayman Islands
           Tel: 345 945-8859
           Fax: 345 949-9793


SAIL VALUE: Shareholders to Gather for Jan. 29 Final Meeting
------------------------------------------------------------
Sail Value Asia Management Ltd.'s final shareholders meeting
will be at 12:00 noon 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


SEAGATE TECH: Posts US$3B Revenue for Qtr. Ended Dec. 29, 2006
--------------------------------------------------------------
Seagate Technology reported revenue of US$3.0 billion, GAAP net
income of US$140 million, and diluted earnings per share of
US$0.23 for the quarter ended Dec. 29, 2006.  Included in the
US$3.0 billion of revenue is approximately US$200 million from
legacy Maxtor designed products.  Net income and diluted
earnings per share includes approximately US$76 million of
charges directly associated with the Maxtor acquisition and
US$19 million for the early retirement of the 8% notes.
Excluding these charges, non-GAAP net income and diluted
earnings per share were US$236 million and US$0.39.

For the six months ended Dec. 29, 2006, Seagate reported revenue
of US$5.8 billion, GAAP net income of US$159 million and diluted
earnings per share of US$0.27.  Net income and diluted earnings
per share includes charges of approximately US$158 million
directly associated with the Maxtor acquisition, US$19 million
for the early retirement of the 8% notes and a US$3 million
favorable adjustment to the restructuring reserve.  Excluding
these charges, non-GAAP net income and diluted earnings per
share were US$333 million and US$0.56.

"Seagate just delivered the industry's first US$3 billion
quarter, and 30% growth over our year-ago quarter," said Bill
Watkins, Seagate's chief executive officer.  "These results are
driven by the explosive growth in digital content and the
resulting growth in demand for storage, as well as by our
ability to deliver a broadening suite of products to a growing
set of customers.  This solid quarter reflects better than
expected desktop pricing during the quarter, the successful
transition of Maxtor customers to more cost-effective, higher
margin Seagate products, and continued operational excellence.
With the Maxtor integration substantially complete and exciting
new products hitting the market in the current quarter, Seagate
is on a path to further increase profitability in the
traditionally slower back half of the fiscal year.

"During the December quarter, we shipped a record 7 million disc
drives for consumer electronics applications, increased our
shipments into the mobile compute market by 52% year-over-year,
and continued to solidify our substantial lead in the enterprise
and desktop markets.  Additional highlights of the quarter
include the start of OEM qualification of Seagate's 1.8-inch
products; the successful launch of the re-branded
Seagate and Maxtor external storage products that included four
new Seagate external storage solutions; and the expansion of
Seagate's services business with the announced acquisition of
EVault, Inc. Our employees have much to be proud of as I believe
Seagate's product and operational execution, as well as the
company's market presence and visibility, have never been
stronger.  We have laid the foundation for continued success and
growing profitability in 2007."

                     Business Outlook

For fiscal year 2007, excluding acquisition related costs but
including Maxtor's operating results, Seagate expects US$11.5-
11.7 billion in revenue and US$1.70-1.75 for Non-GAAP diluted
earnings per share.  Including approximately US$234 million of
expected acquisition related costs, US$19 million of fees
associated with the early redemption of the 8% notes and a
favorable adjustment to restructuring reserves of US$3 million,
GAAP diluted earnings per share would be US$1.27-US$1.32.

For the March quarter, Seagate expects to report revenue of
US$2.9-3.0 billion, and diluted earnings per share of US$0.56-
0.60, excluding acquisition and restructuring related costs.
GAAP diluted earnings per share for the March quarter, including
approximately US$40 million of expected acquisition related
costs would be US$0.49-0.53.

               Dividend and Stock Repurchase

The company has declared a quarterly dividend of US$0.10 per
share to be paid on or before Feb. 16, 2007, to all common
shareholders of record as of Feb. 2, 2007.

During the quarter ended Dec. 29, 2006, the company purchased
and took delivery of approximately 23 million of its common
shares.  Most of these shares were purchased late in the quarter
and had a minimal affect on the average outstanding share
calculation.  Subsequent to Dec. 29, 2006, the company took
delivery of an additional 13 million common shares, which were
paid for in the second fiscal quarter.  The company has
authorization to purchase approximately US$1.4 billion of
additional shares under the current stock repurchase program.

Headquartered in Scotts Valley, California, and registered in
Cayaman Islands, Seagate Technology (NYSE: STX) --
http://www.seagate.com/-- designs, manufactures and markets
hard disc drives, and provides products for a wide-range of
Enterprise, Desktop, Mobile Computing, and Consumer Electronics
applications.  The company is registered in the Cayman Islands.

                        *    *    *

Moody's Investors Service has confirmed on July 17, 2006, the
ratings of Seagate Technology HDD Holdings and upgraded the
ratings of Maxtor Corp., now a wholly owned subsidiary of
Seagate Technology US Holdings, following the completion of its
acquisition on May 19, 2006, and subsequent guaranteeing of
Maxtor's debt by Seagate.  This concludes the review initiated
by Moody's on Dec. 21, 2005.  The review was prompted by the
company's announcement of its intention to acquire Maxtor in an
all-stock transaction for approximately US$1.9 billion. The
ratings outlook is stable.

Moody's confirmed these ratings:

     -- Corporate Family Rating: Ba1; and
     -- SGL Rating of 1.

Moody's upgraded these ratings:

   Seagate Technology HDD Holdings:

     -- US$400 million senior notes 8%, due 2009: to Ba1


TESCO AQUA: Shareholders to Convene for Jan. 29 Final Meeting
-------------------------------------------------------------
Tesco Aqua (2LP) Ltd.'s final shareholders meeting will be on
Jan. 29, 2007, at:

         22 Grenville Street
         St Helier, Jersey, Channel 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:

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


TESCO BLUE: Final Shareholders Meeting Is Set for Jan. 29
---------------------------------------------------------
Tesco Blue (2LP) Ltd.'s final shareholders meeting will be on
Jan. 29, 2007, at:

         22 Grenville Street
         St Helier, Jersey, Channel 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:

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


TESCO RED: Sets Final Shareholders Meeting on Jan. 29
-----------------------------------------------------
Tesco Red (2LP) Ltd.'s final shareholders meeting will be on
Jan. 29, 2007, at:

         22 Grenville Street
         St Helier, Jersey, Channel 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:

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




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


ROCK-TENN: Acquires GSD Packaging Minority Interest for US$32MM
---------------------------------------------------------------
Rock-Tenn Co. has acquired the remaining 40% minority interest
in GSD Packaging, LLC that it did not own for US$32 million,
giving Rock-Tenn sole ownership of the company.

GSD Packaging manufactures the Fold-Pak food pails and Bio-Pak
and SMARTServ food containers in its three plants located in
California, Georgia and Pennsylvania.  Fold-Pak food pails are
the preeminent takeout package used by Chinese restaurants in
the United States.  Bio-Pakr containers are the premium
paperboard package for the foodservice and grocery industries.
SMARTServ containers are grease and leak resistant and can
package a wide variety of food products.  Rock-Tenn acquired its
original 60% interest in GSD as a result of its acquisition of
the Gulf States paperboard and packaging business in June 2005.

Rock-Tenn Company Chairman and Chief Executive Officer James A.
Rubright stated, "We are very pleased with the acquisition of
the minority interest in GSD.  This business has continued to
produce very good results since we acquired it as part of the
2005 acquisition of Gulf States.  GSD is an important customer
of our Demopolis bleached paperboard mill and makes versatile
paperboard based food containers serving a very broad customer
base.  We expect this acquisition to be immediately accretive to
earnings."

Headquartered in Norcross, Georgia, Rock-Tenn Company, provides
marketing and packaging solutions to consumer products companies
from operating locations in the United States, Canada, Mexico,
Argentina and Chile.

                        *    *    *

Moody's Investors Service confirmed on Dec. 11, 2006, these
ratings of Rock-Tenn Company:

   * Corporate Family Rating: Confirmed at Ba2
   * Senior Unsecured Bank Credit Facility: Confirmed at Ba2
   * Senior Unsecured Regular Bond/Debenture: Confirmed at Ba3

Moody's restored the outlook to stable.  The rating action
concludes a review initiated on Feb. 13.  In turn, "the review
was prompted by ongoing margin pressure that, given the
background of increased debt levels as a consequence of an
acquisition that was completed last year, has caused credit
protection measures to lag those appropriate for the current
rating."


ROCK-TENN: Sales Reached US$533M for Qtr. Ended Dec. 31, 2006
-------------------------------------------------------------
Rock-Tenn Co. reported earnings for the quarter ended
Dec. 31, 2006.

                   First Quarter Results

   * Net sales for the first quarter of fiscal 2007 increased
     8.9% to US$533.9 million, an increase of US$43.5 million
     from the first quarter of fiscal 2006.

   * Segment income of US$42.5 million was a US$33.5 million
     increase compared with the prior year quarter.

   * The company reported net income of US$15.1 million, or
     US$0.39 per diluted share, which is a record for its first
     fiscal quarter.  The company reported a net loss of US$9.0
     million, or (US$0.25) per diluted share, in the prior year
     quarter.

   * Rock-Tenn's pre-tax restructuring and other costs were
     US$0.5 million, or US$0.01 per diluted share after-tax, for
     the quarter.

   * Net income for the prior year quarter included pre-tax
     restructuring and other costs of US$1.0 million, or US$0.02
     per diluted share after-tax.

                      Segment Results

Packaging Products Segment

Packaging Products segment net sales increased US$2.0 million
from the prior year quarter to US$303.1 million in the first
quarter of fiscal 2007 due to higher sales of interior packaging
products.  Packaging Products segment-operating income increased
to US$11.7 million in the first quarter of fiscal 2007 compared
with US$6.8 million in the first quarter of fiscal 2006
primarily due to productivity improvements and operating
efficiencies.

Paperboard Segment

Paperboard segment net sales increased US$23.1 million from the
prior year quarter to US$210.8 million in the first quarter of
fiscal 2007 primarily as a result of higher pricing across all
paperboard grades and higher operating rates in the company's
coated recycled paperboard mills.  The average price per ton in
the segment increased US$34 from the first quarter of fiscal
2006. Paperboard segment operating income increased US$24.9
million over the prior year quarter to US$23.9 million in the
first quarter of fiscal 2007.  The company's recycled paperboard
mills operated at 94% of capacity in the first quarter of fiscal
2007 compared with 90% in the prior year quarter.

Merchandising Displays Segment

Merchandising Displays segment net sales increased US$11.7
million over the prior year quarter to US$60.9 million in the
first quarter of fiscal 2007.  Operating income for the segment
was US$5.1 million in the first quarter of fiscal 2007 compared
with US$2.8 million in the first quarter of fiscal 2006.  The
increase in operating income was primarily due to better
leverage of fixed costs due to higher sales.

Corrugated Segment

Corrugated segment net sales increased US$8.2 million over the
prior year quarter to US$36.6 million in the first quarter of
fiscal 2007 primarily due to higher prices.  Operating income
for the segment was US$1.8 million in the first quarter of
fiscal 2007 and US$0.4 million in the first quarter of fiscal
2006.

Rock-Tenn Co. Chairman and Chief Executive Officer James A.
Rubright stated, "Our first quarter earnings reflect improved
results across each of our business segments.  Our Paperboard
segment results reflect much better industry conditions
producing higher margins and operating rates for our coated
recycled paperboard mills and much better performance of our
bleached paperboard mill in the quarter that includes its annual
maintenance outage.  The steps we have taken to consolidate
folding carton plants following the Gulf States acquisition and
to optimize operations across our network of plants resulted in
much better performance in our Packaging Products segment."

         Cash Provided by Operating Activities

Net cash provided by operating activities in the first quarter
of fiscal 2007 was US$32.3 million compared with net cash
provided by operating activities of US$14.9 million in the prior
year quarter.

                Financing and Income Taxes

Rock-Tenn's net debt was US$761.9 million at December 31, 2006
compared with US$788.8 million at Sept. 30, 2006, and US$874.6
million at Dec. 31, 2005.  The company's Credit Agreement Debt/
EBITDA ratio was 3.31x as of Dec. 31, 2006.

The company has reduced its net debt by US$186.8 million from
the pro-forma level of US$948.7 million following the Gulf
States acquisition.  At the time of the acquisition in June
2005, Rock-Tenn had targeted a goal of reducing net debt US$180
million by September 2007.

Rock-Tenn's first quarter fiscal year 2007 effective tax rate
was 29%, lower than the 35% effective tax rate the company
expects for the full year, primarily due to the recognition of
R&D tax credits aggregating US$1.0 million.  Rock-Tenn's first
quarter fiscal year 2006 included deferred tax expense of US$1.4
million from a tax law change in Quebec.

Headquartered in Norcross, Georgia, Rock-Tenn Company, provides
marketing and packaging solutions to consumer products companies
from operating locations in the United States, Canada, Mexico,
Argentina and Chile.

                        *    *    *

Moody's Investors Service confirmed on Dec. 11, 2006, these
ratings of Rock-Tenn Company:

   * Corporate Family Rating: Confirmed at Ba2
   * Senior Unsecured Bank Credit Facility: Confirmed at Ba2
   * Senior Unsecured Regular Bond/Debenture: Confirmed at Ba3

Moody's restored the outlook to stable.  The rating action
concludes a review initiated on Feb. 13.  In turn, "the review
was prompted by ongoing margin pressure that, given the
background of increased debt levels as a consequence of an
acquisition that was completed last year, has caused credit
protection measures to lag those appropriate for the current
rating."




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


ARMOR HOLDINGS: Receives US$56MM Component Order from AM General
----------------------------------------------------------------
Armor Holdings, Inc., received an order from AM General valued
at US$56.3 million under a blanket purchase agreement to provide
armor components for the M1151, M1152 and M1165 Up-Armored HMMWV
programs.  The company stated that the new order represents work
through June 2007 and will be performed by the Armor Holdings
Aerospace and Defense Group at its Fairfield, Ohio facilities.

Robert Schiller, President of Armor Holdings, Inc., said, "We
are pleased to continue to support AM General in meeting the
needs of the U.S. military for Up-Armored HMMWVs."

Headquartered in Jacksonville, Florida, Armor Holdings, Inc. --
http://www.armorholdings.com/-- manufactures and distributes
security products and vehicle armor systems for the law
enforcement, military, homeland security, and commercial
markets.  The company's mobile security division are located in
Mexico, Venezuela, Colombia and Brazil.

                        *    *    *

In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology, the rating agency confirmed its Ba3 Corporate
Family Rating for Armor Holdings Inc.

Additionally, Moody's affirmed its B1 ratings on the company's
2% Convertible Senior Subordinated Notes Due 2024 and 8.25%
Senior Subordinated Notes Due 2013.  Moody's assigned those
debentures an LGD5 rating suggesting noteholders will experience
a 77% loss in the event of default.


ECOPETROL: Extends Barrancabermeja Study Tender to February 6
-------------------------------------------------------------
Colombian state-run oil firm Ecopetrol has extended to Feb. 6
from Jan. 25 the deadline for the submission of proposals for
the study of its Barrancabermeja plant, the US Trade &
Development Agency reports.

Business News Americas relates that the study will help create
an integrated master plan for the upgrade of the plant's
operations.

Barrancabermeja produced an average of 236,700 barrels daily in
the first half of 2006.  The plant supplies 70% of the nation's
fuel and petrochemicals, 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.


SUN MICRO: Commences US$700MM Notes Private Placement with KKR
--------------------------------------------------------------
Sun Microsystems, Inc., disclosed a US$700 million private
placement transaction with KKR Private Equity Investors, L.P.,
the publicly traded fund of Kohlberg Kravis Roberts & Co., one
of the oldest and most experienced private equity firms.  The
investment will be in the form of US$350 million of convertible
senior notes due in 2012, and US$350 million of convertible
senior notes due in 2014.  Closing of the investment is
scheduled for Jan. 26, 2007, and is subject to meeting customary
closing conditions.  A nominee of KKR will be presented for
appointment to the Sun Microsystems Board of Directors upon or
shortly following the close of this transaction.

"We are excited to have the support of one of the world's
premiere private equity firms.  KKR has a stellar track record
of creating value for shareholders, and bringing insight and
opportunity to the companies in which it invests.  This
investment is an important validation of our strategy and
competitive assets, and reflects endorsements from key
customers, along with improving financial performance and market
share gains," said Jonathan Schwartz, CEO of Sun Microsystems.
"Sun is clearly becoming a vendor of choice in the race to build
out the Internet's global infrastructure -- and we intend to use
proceeds from this placement to pursue strategic opportunities
for growth.  We're looking forward to working with KKR to
leverage its expertise, assets, global reach and relationships."

George R. Roberts, a founding member of KKR, said, "Sun
Microsystems is a leader and innovator in the global technology
marketplace.  Jonathan Schwartz and his team have demonstrated
remarkable vision and strong discipline in executing its
turnaround strategy.  This leadership, coupled with the world-
class products and services for which Sun has always been known,
underscores the company's ability to sustain its recent momentum
and the gains it has made in the marketplace.  We are pleased to
have the opportunity to pursue this investment through KKR
Private Equity Investors in order to help Sun to best capitalize
on its substantial growth potential."

The 2012 and 2014 notes will pay interest semi-annually at a
rate of 0.625% and 0.750% per annum respectively.  The 2012 and
2014 notes will be convertible, at the holder's option during
specified periods, at a conversion price of US$7.21 per share.
Upon conversion, Sun Microsystems will deliver cash up to the
principal amount and, at its option, cash or stock equal to the
remaining conversion value.  KPE's US$700 million investment in
Sun Microsystems includes financing provided to KPE by a major
bank in the amount of US$350 million.

Sun Microsystems will use a portion of the offering proceeds to
fund convertible note hedge transactions that it entered into
concurrently with the private placement transaction.  These
transactions are intended to offset the dilution to Sun's common
stock resulting from potential future conversion of the notes.
Concurrent with entering into the convertible note hedges, Sun
Microsystems also entered into separate transactions to sell
warrants to purchase shares of its common stock.  These
transactions will generally have the effect of increasing the
effective conversion price of the notes.  The warrants
associated with the 2012 notes have an exercise price that
represents an approximate 60% premium to the closing price of
Sun Microsystems common stock on Jan. 22, 2007.  The warrants
associated with the 2014 notes have an exercise price that
represents an approximate 75% premium to the closing price of
Sun Microsystems common stock on Jan. 22, 2007.

The counterparty to these transactions, or its affiliates, may
purchase shares of Sun Microsystems common stock or enter into
derivative transactions in Sun Microsystems common stock
concurrently with or following the pricing of the notes.

                          About KKR

KKR is one of the world's oldest and most experienced private
equity firms specializing in management buyouts, with offices in
New York, Menlo Park, California, London, Paris, Hong Kong and
Tokyo.  In recent years KKR has participated in several of the
largest private equity technology investments in history,
including SunGard Data Systems, NXP Semiconductors and Avago
Technologies.  Other KKR technology industry investments include
Aricent, Amphenol, RELTEC, Wincor Nixdorf, Tenovis and Zhone
Technologies.  Over the past thirty years, KKR has invested in
more than 149 transactions with a total value of US$274 billion.

Headquartered in Santa Clara, California, Sun Microsystems Inc.
-- http://www.sun.com/-- provides network computing
infrastructure solutions that include computer systems, data
management, support services and client solutions and
educational services.  It sells networking solutions, including
products and services, in most major markets worldwide through a
combination of direct and indirect channels.

Sun Microsystems conducts business in 100 countries around the
globe, including Latin America: Chile, Colombia, Brazil,
Argentina, Mexico and Venezuela.

                        *    *    *

As reported 1on Oct. 26, Moody's Investors Service has confirmed
its Ba1 Corporate Family Rating for Sun Microsystems Inc. in
connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. Technology Hardware sector.

Sun Microsystems, Inc.'s 7-1/2% Senior Notes due Aug. 15, 2006,
and 7.65% Senior Notes due Aug. 15, 2009, carry Moody's
Investors Service's Ba1 rating and Standard & Poor's BB+ rating.


SUN MICROSYSTEMS: Inks Landmark Agreement with Intel Corp.
----------------------------------------------------------
Sun Microsystems, Inc., and Intel Corp. disclosed a broad
strategic alliance centered on Intel's endorsement of the
Solaris Operating System and Sun's commitment to deliver a
comprehensive family of enterprise and telecommunications
servers and workstations based on Intel Xeon processors.  The
scope of the agreement spans Solaris, Java and NetBeans software
and Intel Xeon microprocessors, as well as other Intel and Sun
enterprise-class technologies.  The alliance also includes joint
engineering, design and marketing efforts.

Intel is embracing Solaris as a mainstream OS and the enterprise
class, mission critical UNIX OS for Intel Xeon processor-based
servers.  Intel also endorses Sun's Solaris, Java and NetBeans
products and will actively support the OpenSolaris and open Java
communities from which they continue to evolve.

Sun is committed to leading on performance and energy efficiency
in its server product line.  After a comprehensive evaluation of
industry platform solutions, Sun has decided to complement its
current offerings with platforms based on Intel Architecture
optimized for Solaris beginning in the first half of 2007.  Sun
believes Intel's model of alternating new microarchitectures
with new process technologies on an annual basis will offer
outstanding building blocks for Sun's customers.

Sun plans to deliver a comprehensive family of Intel-based
systems with uni-, dual- and multi-processor based servers and
workstations supporting Solaris, Windows and Linux.  Intel and
Sun will also collaborate around greater than four processor
scale-up systems optimized for the Solaris OS.

"We're excited about Intel's long term Xeon road map and the
performance we're seeing with Solaris and Sun Java on the Xeon
platforms," said Jonathan Schwartz, president and CEO, Sun
Microsystems, Inc.  "And Intel's endorsement for and agreement
to OEM Solaris opens markets for both of us across the world.
This is truly a landmark relationship for the industry."

"We're thrilled to be working with Sun to make Solaris on Intel
Xeon processors a great solution for our enterprise customers
worldwide," said Paul Otellini, president and CEO, Intel.
"Bringing together the best technologies from both Sun and Intel
will result in innovative products for years to come."

As part of this alliance, Intel has signed a Solaris OEM
agreement enabling Intel to distribute and support the Solaris
OS to its customers as market opportunities may arise and
consistent with Intel's product strategies.  Intel and Sun will
strongly encourage independent software vendors and system
providers to expand their offerings for Solaris on Intel-based
systems, and Intel will support Sun in its efforts to optimize
applications for Solaris on Intel Xeon processor-based systems.

Intel and Sun also believe that the combination of Sun's open
source Solaris and Java development environments and the Intel
architecture provide a solid platform for ISVs to develop and
deliver applications and web services to deliver outstanding
differentiated value to enterprise customers.  The Solaris
platform is supported by more than 2000 ISVs on 800+ platforms
that deliver the essential scaling, functionality and security
capable of handling explosive network growth.

Both companies expect this alliance to expand the reach of Intel
Xeon processor and Solaris OS based solutions. Solaris adoption
will be driven by the Intel Xeon processor's significant market
presence and in turn Solaris will give Intel a broader presence
in the datacenter, virtualization and high performance computing
space. The two companies will also work together on the rapid
adoption of key enterprise-class Intel and Sun technologies for
Sun's systems based on Intel Xeon processors including Intel
Virtualization Technology, Intel IO Acceleration Technology
(IOAT) and Intel Demand Based Switching.

Headquartered in Santa Clara, California, Sun Microsystems Inc.
-- http://www.sun.com/-- provides network computing
infrastructure solutions that include computer systems, data
management, support services and client solutions and
educational services.  It sells networking solutions, including
products and services, in most major markets worldwide through a
combination of direct and indirect channels.

Sun Microsystems conducts business in 100 countries around the
globe, including Latin America: Chile, Colombia, Brazil,
Argentina, Mexico and Venezuela.

                        *    *    *

As reported 1on Oct. 26, Moody's Investors Service has confirmed
its Ba1 Corporate Family Rating for Sun Microsystems Inc. in
connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. Technology Hardware sector.

Sun Microsystems, Inc.'s 7-1/2% Senior Notes due Aug. 15, 2006,
and 7.65% Senior Notes due Aug. 15, 2009, carry Moody's
Investors Service's Ba1 rating and Standard & Poor's BB+ rating.


SUN MICROSYSTEMS: Posts US$3.56B for Quarter Ended Dec. 31, 2006
----------------------------------------------------------------
Sun Microsystems, Inc. (Nasdaq: SUNW) reported results for its
fiscal second quarter, which ended Dec. 31, 2006.

Revenues for the second quarter of fiscal 2007 were US$3.566
billion, an increase of 7% as compared with US$3.337 billion for
the second quarter of fiscal 2006.  The year-over-year revenue
increase was due to sales of SPARC chip multithreading servers
and x64-based servers as well as the increased acceptance of the
Solaris 10 Operating System.  Computer Systems products revenues
increased 14% year-over-year, the fourth consecutive quarter of
year-over-year revenue growth.

Net income for the second quarter of fiscal 2007 on a GAAP basis
was US$126 million or US$0.03 per share on a diluted basis, as
compared with a net loss of US$223 million, or (US$0.07) per
share, for the second quarter of fiscal 2006.

GAAP net income for the second quarter of fiscal 2007 included:

   -- US$58 million of stock-based compensation charges,
   -- US$26 million of restructuring and
   -- related impairment of assets charges and a related tax
      benefit of US$4 million.

The net impact of these three items was approximately (US$0.02)
per share on a diluted basis.

Cash generated from operations for the second quarter of fiscal
2007 was US$153 million, and cash and marketable debt securities
balance at the end of the quarter was US$4.837 billion.

"Sun's financial performance this quarter demonstrates that our
strategy and discipline are paying off," said Jonathan Schwartz,
CEO of Sun Microsystems.  "The steady increase in adoption of
our key developer platforms, the outstanding performance of our
systems group, coupled with yesterday's endorsement of Solaris
by Intel and today's landmark investment by KKR Private Equity
Investors, L.P., are all validation of our momentum, and key
drivers behind our push towards sustained growth and
profitability."

Headquartered in Santa Clara, California, Sun Microsystems Inc.
-- http://www.sun.com/-- provides network computing
infrastructure solutions that include computer systems, data
management, support services and client solutions and
educational services.  It sells networking solutions, including
products and services, in most major markets worldwide through a
combination of direct and indirect channels.

Sun Microsystems conducts business in 100 countries around the
globe, including Latin America: Chile, Colombia, Brazil,
Argentina, Mexico and Venezuela.

                        *    *    *

As reported 1on Oct. 26, Moody's Investors Service has confirmed
its Ba1 Corporate Family Rating for Sun Microsystems Inc. in
connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. Technology Hardware sector.

Sun Microsystems, Inc.'s 7-1/2% Senior Notes due Aug. 15, 2006,
and 7.65% Senior Notes due Aug. 15, 2009, carry Moody's
Investors Service's Ba1 rating and Standard & Poor's BB+ rating.


SUN MICROSYSTEMS: S&P Says Debt Placement Won't Affect Ratings
--------------------------------------------------------------
Sun Microsystems Inc. (BB+/Stable/A-3) recently announced a
US$700 million private placement transaction of senior
convertible notes with KKR Equity Investors, L.P.  In
conjunction with or shortly following the close of this bond
transaction, a nominee of KKR will be presented for appointment
to Sun's board of directors.

Standard & Poor's Ratings Services does not expect the proposed
transaction to have a current impact on its ratings or outlook
for the company.  While Sun's funded debt level will increase,
so will the company's already substantial net cash position.  As
of Dec. 31, 2006, Sun had cash and marketable securities
balances of US$4.8 billion, and total debt (including
capitalized operating leases) of about US$1.4 billion.  Pro
forma total debt to EBITDA will be about 2.6x as of
Dec. 31, 2006.  Sun has been more acquisitive since 2005, but
has used its cash balances to fund its growth initiatives.

However, the presence of a KKR nominee on Sun's board does raise
concerns about potential future changes in Sun's financial
policy and financial profile, particularly in light of
increasing LBO activity in the technology sector.  In the near
term, we expect Sun to maintain a moderately leveraged capital
structure, and to continue to invest in strategic growth,
including acquisitions.  Sun's current financial profile
provides important ratings support, given its inconsistent
operating performance, so a change to its financial policy could
negatively affect the rating.

Headquartered in Santa Clara, California, Sun Microsystems Inc.
-- http://www.sun.com/-- provides network computing
infrastructure solutions that include computer systems, data
management, support services and client solutions and
educational services.  It sells networking solutions, including
products and services, in most major markets worldwide through a
combination of direct and indirect channels.

Sun Microsystems conducts business in 100 countries around the
globe, including Latin America: Chile, Colombia, Brazil,
Argentina, Mexico and Venezuela.




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


BANCO BAC: Posts CRC12.6 Billion Net Profits in 2006
----------------------------------------------------
Banco BAC San Jose SA's net profits increased 8% to CRC12.6
billion in 2006, compared with 2005, Business News Americas
reports.

BNamericas relates that Banco BAC's performing loans increased
29% to CRC308 billion in 2006, compared with 2005.  Investments
in securities decreased 21% to CRC51.3 billion.

According to BNamericas, Banco BAC's assets grew 21% to CRC482
billion as of Dec. 31, 2006, from Dec. 31, 2005.  Interest-
bearing liabilities rose 10% to CRC357 billion, and non-interest
bearing liabilities increased 113% to CRC84.7 billion.

The report says that Banco BAC's shareholder equity rose 19% to
CRC39.9 billion in 2006, compared with 2005,

Banco BAC's had a loan market share of 8.2% in December 2006,
compared with a market share of 7.4% in December 2005,
BNamericas states.

BAC San Jose, created in 1968, is a wholly owned unit of
financial group Corporacion Tenedora BAC San Jose aka Grupo
Financiero BAC San Jose.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Dec. 26, 2006, Standard & Poor's Ratings Services affirmed its
'BB/B' foreign currency and 'BB+/B' local currency counterparty
credit ratings on Banco BAC San Jose SA.  S&P says the outlook
is stable.




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


PETROECUADOR: Needs US$1 Bil. to Boost & Stabilize Production
-------------------------------------------------------------
Carlos Pareja Yannuzzelli, executive president of Ecuadorian
state oil Petroecuador, said in a statement that the firm
urgently needs US$1 billion to stabilize and increase production
levels.

Mr. Pareja told Business News Americas that though US$1 billion
is needed immediately, Petroecuador has to have a total US$10
billion for investments, including plant developments.

According to BNamericas, Ecuador wants to boost its 170,000-
barrel-per-day refining capacity to lessen reliance on imports
of derivatives.

BNamericas underscores that Ecuador imported about 24 million
barrels for US$2 billion of derivatives last year.  The nation
will spend US$2.3 billion this year on derivatives.

Mr. Pareja is positive that a new refinery will be constructed
in Manabi, BNamericas notes.

BNamericas relates that Petroecuador could develop a new plant
with Petroleos de Venezuela, its Venezuelan counterpart, under
the cooperation accord the two firms signed just after Ecuador's
President Rafael Correa became president this month.

Petroecuador said in a statement that the new plant would
require four years to develop.

Petroecuador must recover its financial and administrative
autonomy from the economy ministry this year as oil resources go
directly to the ministry, BNamericas states, citing Mr. Pareja.

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




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


AFFILIATED COMPUTER: Renews HRO Contract with American Financial
----------------------------------------------------------------
Affiliated Computer Services, Inc., has been awarded a three-
year renewal of its benefit plan administration outsourcing
contract with American Financial Group, Inc., a leading provider
of property and casualty insurance, annuities, and supplemental
health insurance.

ACS has been administering 401(k) benefits to AFG employees
since 1997.  Current services supported include record keeping
for 401(k) qualified and non-qualified plans, call center
support, website transaction processing, and transmittal and
payment report preparation.  The renewal of these services
emphasizes ACS' position as a leading provider of benefits
administration -- part of its comprehensive suite of human
resources out sourcing or HRO services.

"ACS' HRO expertise has ably served our personnel for the last
decade," said Scott Beeken, head of Benefits and Retirement
Plans for AFG.  "The company provides skilled support and
intimate knowledge of the industry to our employees, who in turn
can focus on making AFG's core business flourish.  ACS' services
have been high-quality, cost-effective, and consistent from the
beginning."

"This contract illustrates why so many of our clients see ACS as
a highly dependable provider for the long term," said Ann
Vezina, Executive Vice President and COO -- Commercial.  "ACS
has not only established itself as a principal force in the HRO
arena, but also as an innovator, focused on delivering a full
range of scalable solutions, and leveraging the latest in
technology and expertise to deliver superior performance for our
clients."

ACS currently serves more than 11,000 AFG employees and handles
more than US$600 million in assets -- processing approximately
13,000 transactions each year from its service centers in New
Jersey and Jamaica.

ACS offers a full range of integrated, end-to-end HRO services,
and is renowned for its pioneering initiatives that have opened
a complete spectrum of customized solutions to large-scale
clients around the world.  ACS provides HRO services for more
than three million people around the globe, delivering services
from more than 30 global locations supporting client operations
in more than 60 countries and supporting 20 languages.  ACS'
comprehensive suite of HRO capabilities includes total benefits
outsourcing -- complete employee services and benefits
administration -- as well as strategy and consulting to engineer
and improve HR operations and services.

Through the operations of the Great American Insurance Group,
American Financial is engaged primarily in property and casualty
insurance, focusing on specialized commercial products for
businesses, and in the sale of traditional fixed, indexed, and
variable annuities; and a variety of supplemental insurance
products.

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

                        *    *    *

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

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


AFFILIATED COMPUTER: Elects Robert Holland to Board of Directors
----------------------------------------------------------------
Affiliated Computer Services, Inc., has elected Robert B.
Holland, III, to its Board of Directors effective immediately.

Darwin Deason, Chairman of the ACS Board of Directors said, "We
are extremely pleased that Bob Holland is joining our Board.  He
is a very talented corporate executive and his broad
international experience, including his most recent experience
as U.S. Executive Director of the World Bank, will be invaluable
to ACS as we continue to expand our global client base.  We look
forward to the significant contributions Bob will make to our
Board."

Mr. Holland represented the United States on the Board of
Directors of the World Bank from 2002 through 2006.  The World
Bank provides financial, technical, and economic development
assistance to developing countries and includes 184 member
countries.  In his position as U.S. Executive Director, Mr.
Holland was involved in the loan approval, investments, country
assistance strategies, budgets, audits, and business plans of
the World Bank, including coordination of its activities with
the International Monetary Fund, U.S. Treasury Department, U.S.
State Department, and the National Security Council. His
experience included involvement with World Bank projects and
foreign government finance and other ministries around the
world.  Mr. Holland also served on the Audit Committee of the
World Bank during his tenure and was confirmed as an audit
committee financial expert.

Mr. Holland was managing partner of Texas Limited, a private
consulting and investment partnership, from 1999 until 2002.
From 1993 through 1999 he held various executive positions with
Triton Energy Limited, a NYSE-listed international exploration
company operating on every continent, including the positions of
General Counsel, Chief Operating Officer, and Chief Executive
Officer. Mr. Holland was a partner with Jackson Walker, LLP
through 1994.

Mr. Holland previously served on the Board of Directors of TCA
Cable TV, Inc., a NYSE-listed company, until its sale to Cox
Communications in 1999. He also currently serves on the Board of
Directors of Max Petroleum, plc, a London Stock Exchange-listed
company, and is Chairman of the Audit Committee.  Mr. Holland
earned his undergraduate degree in Economics from Stanford
University in 1974 and his law degree from the University of
Texas Law School in 1977.

The ACS Board of Directors has determined that Mr. Holland is an
independent director under the NYSE-listing standards and the
Company's published director independence guidelines. The
addition of Mr. Holland to the Board increases the size of the
ACS Board to eight members, including five independent
directors.

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

                        *    *    *

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

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




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


MAAX HOLDINGS: Moody's Downgrades Ratings on Senior Notes
---------------------------------------------------------
Moody's Investors Service downgraded MAAX Holdings, Inc.'s and
MAAX Corp.'s corporate family, senior unsecured discount notes
due 2012, and senior subordinated notes due 2012 to Caa2, Caa3
and Caa3 from B3, Caa1 and Caa1, respectively.  The downgrade
reflects Moody's negative outlook for the residential remodeling
and homebuilding industries in North America, and the
difficulties this is likely to pose for MAAX as it attempts to
improve its profitability, cash flows and comply with debt
covenants.   Moody's outlook for the rating was changed to
negative from stable.

On Jan. 9, 2007, MAAX entered into a Credit and Guaranty
Agreement with Brookfield Bridge Lending Fund for a US$175
million term loan and a US$40 million revolving credit facility.
This debt, which is unrated by Moody's, replaces its previous
facilities.  Accordingly, Moody's withdraws those ratings.

The New Credit Agreement contains a minimum monthly LTM adjusted
EBITDA requirement and fixed charge coverage ratio, which will
require monthly compliance.  Moody's believes MAAX will be
challenged to maintain compliance with the monthly minimum
EBITDA requirement of US$36 million in this weak environment.

Moody's ratings also reflect MAAX's high leverage, US$487
million, and its weak debt protection metrics.   The ratings
also reflect weak coverage of the debt in relation to the
company's tangible assets, estimated to be less than 50% of
total obligations in a distress situation.

Downgrades:

   MAAX Holdings, Inc.

   -- Corporate Family Rating to Caa2 from B3;
   -- Probability of Default Rating to Caa2 from B2; and
   -- 11.57% Sr Unsecured Discount notes due 2012 to Caa3 from
      Caa1.

   MAAX Corp.

   -- US$150 million, 9.75% Sr Sub notes due 2012 to Caa3 from
      Caa1.

Outlook Actions:

   MAAX Holdings, Inc.

   -- Outlook, Changed to Negative from Stable.

   MAAX Corp.

   -- Outlook, Changed to Negative from Stable.

Confirmations:

   MAAX Holdings, Inc.

   -- Speculative Grade Liquidity Rating, confirmed at SGL-4.

Moody's previous rating action for MAAX was on June 21, 2006,
when the Speculative Grade Liquidity Rating was lowered to SGL-4
from SGL-3.  On Jan. 6, 2006, MAAX's corporate family rating was
lowered to B3 from B2.

Headquartered in Brooklyn Park, Minnesota, Maax Holdings, Inc.
is engaged in the manufacture of bathroom fixtures.  The company
has operations in Jamaica and Puerto Rico.




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


ACCELLENT INC: Moody's Downgrades Corporate Family Rating to B3
---------------------------------------------------------------
Moody's Investors Service downgraded Accellent Inc.'s corporate
family rating to B3 from B2 and assigned a stable outlook.
There was no change to Accellent's speculative grade liquidity
rating of SGL-3.

Moody's downgrade reflects:

   (1) lack of meaningful free cash flow generation, which
       has been significantly lower than anticipated when the
       B2 rating was initially assigned;

   (2) very high financial leverage;

   (3) weaker than anticipated top-line growth due to softness
       in underlying customer markets; and

   (4) the recent unanticipated departure of senior management.

Moody's believes that given significant capital investment needs
relative to cash flow, free cash flow will continue to be
pressured.

Moody's analyst, Diana Lee, commented, "Accellent has fallen
short of our expectations, due in part to a slow down in some of
their end-user markets.  Given the uncertain rate of recovery of
these markets, we believe Accellent will face ongoing challenges
going forward and that a downgrade is warranted at this time".

The stable ratings outlook assumes the company will not engage
in any material debt-financed acquisitions.  It further
favorably reflects the general viability of Accellent's
underlying business model, which should allow the company to
maintain adequate liquidity and should not result in material
deterioration in its current cash flow or financial strength and
financial policy ratios during the near term.

Moody's downgraded these ratings:

   -- Corporate family rating to B3 from B2;
   -- PDR to B3 from B2;
   -- Secured revolver to B1 from Ba3;
   -- Secured term loan to B1 from Ba3; and
   -- Sr. subordinated notes to Caa2 from Caa1.

Accellent Inc., headquartered in Wilmington, MA, is an outsource
manufacturer of medical products, primarily serving the
cardiology, endoscopy, and orthopedic markets.  The company
generated revenues of US$487 million for the twelve months ended
Sept. 30, 2006.  The company has offices in Mexico.


ALLIS-CHALMERS: Prices US$250MM Senior Notes Private Offering
-------------------------------------------------------------
Allis-Chalmers Energy Inc. has priced a private offering of
US$250.0 million aggregate principal amount of 8.5% Senior Notes
due 2017.  Fixed interest on the notes will be payable on March
1 and Sept. 1 of each year, beginning on Sept. 1, 2007, at an
annual rate of 8.5%. The notes will mature on March 1, 2017.
Allis-Chalmers expects the sale of the notes to settle on
Jan. 29, 2007.

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

Based in Houston, Texas, Allis-Chalmers Energy Inc. (AMEX: ALY)
-- http://www.alchenergy.com/-- provides oilfield services and
equipment to the oil and gas exploration and development
companies primarily in Texas, Louisiana, New Mexico, Colorado,
and Oklahoma; offshore in the United States Gulf of Mexico; and
offshore and onshore in Mexico.  The company offers directional
drilling, compressed air drilling, casing and tubing, rental
tools, and production services.

                        *     *     *

As reported in the Troubled Company Reporter on Jan. 18, 2007,
Moody's Investors Service placed Allis-Chalmers Energy, Inc.'s
ratings on review for possible upgrade.  At the same time,
Moody's assigned a B3 rating to the proposed US$225 million
senior unsecured notes to be issued by Allis-Chalmers.


AMERICAN AIRLINES: Names Denis Lynn as Global Human Resources VP
----------------------------------------------------------------
American Airlines has named Denise Lynn Vice President of Global
Human Resources Services, filling the position previously held
by Debra Hunter Johnson who left the company in December 2006.

Ms. Lynn will lead the team responsible for providing human
resource support to managers in the U.S., Latin America, and
Mexico.  In addition, she will continue to advance the company's
efforts in diversity for employees, customers, and suppliers.

"We are extremely fortunate to have an executive of Denise's
caliber to assume this critical leadership role," said Jeff
Brundage, American's Senior Vice President-Human Resources.
"With her people skills and her breadth of HR experience, Denise
is an outstanding choice to build on
Debra's many accomplishments."

Since 2004, Ms. Lynn has served as American Eagle's Vice
President-People, with responsibility for all personnel and
labor matters for the airline.  She joined American in 1989 as a
financial analyst in Airline Planning and moved to Human
Resources in 1992, where she became the manager of Benefits
Strategy and HR Controller.  She became managing director of
Benefits Planning and Administration in 1996.

Ms. Lynn was responsible for the transition of TWA employees
when American acquired the airline in 2001.  With the completion
of the TWA integration in 2002, she became managing director of
Productivity & Business Analysis in Human Resources.

Ms. Lynn graduated from Bath University in England with a
bachelor of science degree in Economics, and arrived in the
United States in 1987 on special assignment as a consultant to
advise Dallas Area Rapid Transit on the redesign of its bus
network.  Ms. Lynn is a member of the Board of Directors of the
American Airlines Federal Credit Union.  She lives in Dallas
with her husband, Danny, and two sons.

American's approach to diversity has been widely recognized.
Among the recent accolades, Profiles in Diversity Journal
magazine named American Airlines among the top 10 in diversity
for its use of employee resource groups as participants in the
business development process; Latina Style named the company
among the top 50 companies for Latinas; and Black Enterprise
magazine included American in its list of top 50 companies for
diversity for its overall approach to diversity, including its
use of minority and women suppliers, and its employee and
community relations programs.

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

                        *    *    *

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


CELESTICA INC: Shareholders File Class Action Lawsuit
-----------------------------------------------------
The law firm of Schiffrin Barroway Topaz & Kessler, LLP
disclosed that a class action lawsuit was filed in the United
States District Court for the Southern District of New York on
behalf of all common stock purchasers of Celestica, Inc., from
July 27, 2006, through Dec. 12, 2006, inclusive.

The complaint charges Celestica and certain of its officers and
directors with violations of the Securities Exchange Act of
1934.  More specifically, the complaint alleges that the company
failed to disclose and misrepresented these material adverse
facts which were known to defendants or recklessly disregarded
by them:

   (1) that demand for products produced by the company's
       Information Technology and Communications divisions was
       declining due to a drop off in orders placed by its key
       customers;

   (2) due to this, inventory at the company's Monterrey,
       Mexico facility (the facility that supports the
       Information Technology and Communications divisions)
       built up to the point where much of said inventory would
       have to be written off;

   (3) that the company lacked adequate internal controls to
       effectively forecast demand; and

   (4) that, as a result of the foregoing, the company's
       statements about its financial well-being and future
       business prospects were lacking in any reasonable basis
       when made.

After a series of announcements by the company, which included
news that Defendant Stephen Delaney had resigned, Celestica
shocked investors on Dec. 12, 2006, when it announced that, in
striking contrast to the company's prior announcements regarding
forecasting, demand and inventory, the company was drastically
slashing its financial guidance for the fourth quarter of 2006.
On this news, shares of the company's stock plunged US$1.14, or
12%, to close, on Dec. 12, 2006, at US$8.23 per share, on
unusually heavy trading volume.

Plaintiff seeks to recover damages on behalf of class members
and is represented by the law firm of Schiffrin Barroway Topaz &
Kessler that prosecutes class actions in both state and federal
courts throughout the country.  Schiffrin Barroway Topaz &
Kessler is a driving force behind corporate governance reform,
and has recovered billions of dollars on behalf of institutional
and individual investors from the United States and around the
world.

A member of the class described above may not later than
March 13, 2007, move the Court to serve as lead plaintiff of the
class.

The law firm can be reached at:

          Schiffrin Barroway Topaz & Kessler, LLP
          Attn: Darren J. Check, Esq.
                Richard A. Maniskas, Esq.
          Tel: 1-888-299-7706 (toll-free)
               1-610-667-7706
          E-mail: info@sbtklaw.com

Based in Toronto, Ontario, Celestica, Inc. (NYSE: CLS,
TSX: CLS/SV) -- http://www.celestica.com/-- provides electronic
manufacturing services to original equipment manufacturers in
the computing, telecommunications, aerospace and defense,
automotive, consumer electronics, and industrial sectors in
Asia, Mexico, Puerto Rico, Brazil, and Europe.  Its solutions
comprise design and engineering, manufacturing and systems
integration, and fulfillment, as well as after-market services.

The company has a strategic alliance with Bartolini Progetti
S.p.a.  Celestica was incorporated as Celestica International
Holdings, Inc. in 1996 and changed its name to Celestica, Inc.
The company is based in Toronto, Canada.  Celestica, Inc. is a
subsidiary of the Onex Corp.

                        *    *    *

On Dec. 22, 2005, Fitch assigned its 'BB-' issuer default and
unsecured credit facility ratings to Celestica Inc.  Fitch also
assigned a 'B+' rating to the company's senior subordinated
debt.  Fitch said the rating outlook is stable.

In February 2005, Moody's Investors Service lowered Celestica's
senior implied rating to Ba3 from Ba2, senior unsecured issuer
rating to B1 from Ba3 and the subordinated notes rating to B2
from Ba3.


DELTA AIR: CEO Grinstein Testifies at Senate Committee Hearing
--------------------------------------------------------------
Gerald Grinstein, Chief Executive Officer of Delta Air Lines
appeared before the U.S. Senate Committee on Commerce, Science
and Transportation to provide testimony to the full committee
about the state of the airline industry and the potential impact
of airline mergers and industry consolidation.  In his remarks,
Mr. Grinstein discussed the enormous progress Delta people have
achieved over the past 16 months in transforming the airline
into a strong, healthy and vibrant competitor.  He noted that
the company is poised to exit bankruptcy this spring as one of
the best-positioned airlines in the country based on financial
strength, profit potential and a cost structure among the lowest
of any traditional network carrier.

In his testimony, Mr. Grinstein also addressed the unsolicited
takeover proposal made by US Airways.  As previously stated,
Delta's Board of Directors rejected the initial proposal made by
US Airways on Nov. 15, 2006, and concluded that the company's
standalone Plan of Reorganization will provide creditors with
superior value as well as a faster recovery and much greater
certainty of execution.  The Delta Board will review the revised
proposal made by US Airways earlier this month.

"The stage is set for Delta to emerge as a powerful, competitive
force to be reckoned with -- unless US Airways' takeover bid is
allowed to derail our momentum and jeopardize our hard-won
gains," Mr. Grinstein told the Senate committee.

Mr. Grinstein said that a primary reason for Congress to examine
the competitive impact of the US Airways proposal deal is that
if the merger were to go forward, it would trigger broad
industry consolidation.  He said, "Almost every day brings a new
media report on potential mergers in the airline industry, most
of which are stated openly as direct reactions to US Airways'
bid.  And if this anticompetitive proposed merger gains approval
despite its substantial adverse impacts on competition,
consumers, communities and employees, virtually any other
airline merger would likely pass regulatory muster. In our view,
the likely outcome of follow-on consolidation would be to leave
the combined Delta and US Airways as the weakest carrier, with
little West Coast and Asian presence and a staggering debt
load."

In his remarks, Mr. Grinstein made these observations:

   * Delta is poised to emerge from bankruptcy as a strong
     airline.  While many companies use the bankruptcy process
     simply to shore up their balance sheet and reduce debt,
     Delta undertook a top-to-bottom transformation that touched
     every aspect of how it does business.  It is using the
     bankruptcy process to improve and strengthen the airline.

   * Delta people deserve to determine their own destiny.  Delta
     people are united in their strong opposition to US Airways'
     proposal, representing as it does the worst possible
     combination with the most negative impact on virtually all
     constituencies.

   * US Airways' proposal fails absolutely to meet antitrust
     standards and would reduce competition and harm consumers.
     US Airways' principal goal in its hostile takeover attempt
     is to eliminate its key competitor.  Delta is the airline
     with which US Airways' network overlaps most, with the
     highest number of overlapping markets and hubs.  No merger
     with anywhere near this degree of network redundancy has
     ever been approved by the Department of Justice in the
     history of this industry.

   * The proposed merger would make Delta a weaker and less
     competitive carrier.  The combined company would have a
     staggering debt burden of US$24 billion, which would place
     the merged US Airways-Delta one crisis away from financial
     collapse.

Mr. Grinstein concluded, "We believe US Airways' unsolicited and
anticompetitive proposal does not meet antitrust standards, and
would harm employees, consumers and communities.  It would
create a much weaker combined carrier that would threaten the
future stability of our nation's air transportation industry.
It would reverse the remarkable progress Delta has made.  Let me
be clear -- this is a hostile takeover bid; not a consensual
merger."

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).


DIRECTV INC: Inks Multi-Year Contract Extension with ClientLogic
----------------------------------------------------------------
ClientLogic signed a multi-year contract extension with DIRECTV,
Inc., to continue providing award-winning customer care and
technical support to DIRECTV's more than 15.6 million customers.
The contract extension is the result of a successful outsourcing
partnership focused on driving customer service excellence
through industry-leading business and operational initiatives.

ClientLogic and DIRECTV began working together in 2004 with the
common goal of providing the highest level of customer care in
the industry. ClientLogic immediately implemented a multi-level
client management team to ensure all lines of communication
between the organizations -- from strategic to tactical -- were
always open.  The "peer to peer" management team, along with
highly specialized auxiliary staff, has consistently identified
business and operational initiatives to elevate customer care
performance to the next level.

"Customer satisfaction has been the cornerstone of DIRECTV's
success since its inception and that will be an area of intense
focus in 2007," said John Suranyi, president, Sales and Service,
DIRECTV, Inc. "ClientLogic has been a key partner in ensuring
that each of our customers has the best experience possible and
we're pleased to continue this important relationship."

"Our work with DIRECTV demonstrates ClientLogic's commitment to
developing true outsourcing relationships that move business
forward," said Julie Casteel, chief global sales and marketing
officer at ClientLogic.  "Through innovative management
practices, training programs and business strategies,
ClientLogic has become an engrained part of DIRECTV's success
and we are proud to work with a company that shares our
commitment to customer service excellence."

                     About ClientLogic

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

                        About DIRECTV

Headquartered in El Segundo, California, The DirecTV Group, Inc.
(NYSE: DTV) -- http://www.directv.com/-- provides direct
broadcast satellite service to more than 15 million customers in
the US and more than 1.5 million customers through its DirecTV
Latin America segment.

                        *    *    *

The DIRECTV Group Inc.'s long-term local and foreign issuer
credits carry Standard & Poor's BB ratings.  The ratings were
placed on Aug. 9, 2004 with a stable outlook.


FOAMEX INT: Equityholders Unanimously Voted to Accept Plan
----------------------------------------------------------
Foamex International Inc. disclosed that the equityholders
voting on its Second Amended Joint Plan of Reorganization have
voted unanimously to accept the Plan.

Raymond E. Mabus, Jr., Chairman and Chief Executive Officer of
Foamex, said, "We are pleased to have received the unanimous
support of the equityholders who voted on the Plan.  Over the
past several months, we have worked diligently to address the
interests of all our stakeholders in an effort to achieve the
most value possible for all stakeholders.  Today's announcement,
along with the previously announced Plan acceptance by the
Senior Secured Noteholders, reflects real progress towards our
emergence, which we continue to expect to occur in the first
quarter of 2007."

The company has filed a supplement to the Plan with the United
States Bankruptcy Court for the District of Delaware.  As
anticipated by the Plan, the Plan Supplement contains
information and materials relating to implementation of the
Plan, including proposed forms of agreements that may be entered
into upon the company's exit from bankruptcy.

Among other things, the Plan Supplement discloses the identity
of individuals proposed to become directors of the company upon
the effective date of the Plan.  The company's proposed
directors are subject to change prior to confirmation of the
Plan by the Bankruptcy Court.

The proposed new directors are:

   -- Mr. Robert B. Burke, Founder and Chief Executive Officer
      of Par IV Capital Management, LLC;

   -- Mr. Seth Charnow of the D. E. Shaw Group; and

   -- Mr. Eugene I. Davis, Chairman and Chief Executive Officer
      of PIRINATE Consulting Group, LLC.

The proposed continuing directors are:

   -- Mr. Raymond E. Mabus, Jr.;

   -- Mr. Gregory J. Christian, the company's Executive Vice
      President, Chief Restructuring Officer, Chief
      Administrative Officer, and General Counsel who will
      assume the role of President of the reorganized company;
      and

   -- Mr. Thomas M. Hudgins, Retired Partner, Ernst & Young LLP.

In addition, Mr. Gregory J. Corona, Chairman of Lakewood
Capital, LLC and Accubuilt, Inc., is expected to be invited to
serve on the board of directors of Reorganized Foamex
International as of the Effective Date.

The Plan Supplement contains additional information concerning
potential transactions and agreements to be entered into in
connection with the consummation of the Plan, including, without
limitation, information concerning the proposes exit facility,
the equity investment commitment, the proposed corporate
governance documents and the proposed executive officers, all of
which are subject to revision and modification prior to the
company's emergence from bankruptcy in accordance with the Plan.

A hearing to consider confirmation of the Plan is scheduled for
Feb. 1, 2007.

Headquartered in Linwood, Pennsylvania, Foamex International
Inc. is engaged primarily in the manufacturing and distribution
of flexible polyurethane and advanced polymer foam products.  As
of Jan. 1, 2006, the company's operations were conducted through
its wholly owned subsidiary, Foamex L.P., and through Foamex
Canada Inc., Foamex Latin America, Inc. and Foamex Asia, Inc.,
which are wholly owned subsidiaries of Foamex L.P.  The company
has five business segments: Foam Products, Carpet Cushion
Products, Automotive Products, Technical Products and Other
Products.  On Sept. 19, 2005, (the Petition Date), the company
and certain of its domestic subsidiaries, including Foamex L.P.,
the company's primary operating subsidiary (collectively
referred to as the Debtors), filed voluntary petitions for
relief under Chapter 11 of the United States Bankruptcy Code
(Bankruptcy Code) in the United States Bankruptcy Court for the
District of Delaware (the Bankruptcy Court).  The Latin American
subsidiary is in Mexico.

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 8, 2006,
Moody's Investors Service has assigned a B2 corporate family and
probability of default ratings on Foamex L.P.  Concurrently,
Moody's has assigned a B1 rating to the company's US$425 million
first lien senior secured Term Loan B and a Caa1 rating to its
US$190 million second lien senior secured term loan (expected to
be downsized to US$175 million).  Moody's said the ratings
outlook is stable.


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

The Creditors Committee is now composed of:

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

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

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

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

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

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

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

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

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




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


CLIENTLOGIC: Inks Multi-Year Contract Extension with DIRECTV
------------------------------------------------------------
ClientLogic signed a multi-year contract extension with DIRECTV,
Inc., to continue providing award-winning customer care and
technical support to DIRECTV's more than 15.6 million customers.
The contract extension is the result of a successful outsourcing
partnership focused on driving customer service excellence
through industry-leading business and operational initiatives.

ClientLogic and DIRECTV began working together in 2004 with the
common goal of providing the highest level of customer care in
the industry.  ClientLogic immediately implemented a multi-level
client management team to ensure all lines of communication
between the organizations - from strategic to tactical -- were
always open.  The "peer to peer" management team, along with
highly specialized auxiliary staff, has consistently identified
business and operational initiatives to elevate customer care
performance to the next level.

"Customer satisfaction has been the cornerstone of DIRECTV's
success since its inception and that will be an area of intense
focus in 2007," said John Suranyi, president, Sales and Service,
DIRECTV, Inc. "ClientLogic has been a key partner in ensuring
that each of our customers has the best experience possible and
we're pleased to continue this important relationship."

"Our work with DIRECTV demonstrates ClientLogic's commitment to
developing true outsourcing relationships that move business
forward," said Julie Casteel, chief global sales and marketing
officer at ClientLogic.  "Through innovative management
practices, training programs and business strategies,
ClientLogic has become an engrained part of DIRECTV's success
and we are proud to work with a company that shares our
commitment to customer service excellence."

                       About DIRECTV

Headquartered in El Segundo, California, The DirecTV Group, Inc.
(NYSE: DTV) -- http://www.directv.com/-- provides direct
broadcast satellite service to more than 15 million customers in
the US and more than 1.5 million customers through its DirecTV
Latin America segment.

                     About ClientLogic

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

                        *    *    *

As reported in the Troubled Company Reporter on Jan. 9, 2007,
Moody's Investors Service upgraded ClientLogic Corp.'s corporate
family rating to B2 from B3.  Moody's said the rating outlook is
stable.

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




=======
P E R U
=======


* PERU: LNG Consortium Awards Engineering Contract to CB&I
----------------------------------------------------------
CB&I has been awarded a contract by Peru LNG S.R.L. for the
engineering, procurement, fabrication, construction, and
commissioning of a liquefied natural gas liquefaction plant in
Pampa Malchorita, Peru, located about 170 kilometers south of
Lima.  CB&I's commercial scope of work is valued in excess of
US$1.5 billion.  Peru LNG S.R.L. is a consortium comprised of
Hunt Oil Company of the United States, SK Corporation of Korea
and Repsol YPF S.A. of Spain.

CB&I's work includes the entire liquefaction plant, with a
designed production capacity of 4.45 million tons per year of
LNG.  The project encompasses treatment of the inlet gas,
liquefaction, two LNG tanks, ship loading facilities, power
generation, plant utilities, and related ancillary buildings and
systems.

CB&I's experience in the LNG industry includes the design/build
responsibility for dozens of regasification terminals worldwide,
as well as the mechanical erection of LNG liquefaction plants in
Malaysia, Nigeria and Australia.  Overall, CB&I has built more
than 40 LNG terminals and peak shaving facilities on a turnkey
EPC basis.

"We appreciate the confidence shown by Peru LNG in selecting
CB&I for this significant project," said Philip K. Asherman,
CB&I's President and CEO.  "This award builds on our decades of
proven worldwide experience in the LNG industry and capitalizes
on CB&I's extensive history in Peru and throughout Latin
America."

CB&I has worked in Peru for more than 40 years, and plans to
draw upon the excellent Peruvian labor force for the execution
of this project.  Among its experience in the country, CB&I has
been involved in the Camisea natural gas project since its
inception, providing cryogenic gas processing facilities and
storage for gas liquids.  The Peru LNG project provides organic
growth for CB&I in this market and capitalizes on the company's
comprehensive gas processing capabilities.

CB&I executes on average more than 700 projects each year and is
one of the world's leading engineering, procurement and
construction companies, specializing in projects for customers
that produce, process, store and distribute the world's natural
resources.  With more than 60 locations and approximately 12,000
employees throughout the world, CB&I capitalizes on its global
expertise and local knowledge to safely and reliably deliver
projects virtually anywhere.

                        *    *    *

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-'.




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


APARTMENT INVEST: Discloses 2006 Dividend Income Tax Allocation
---------------------------------------------------------------
Apartment Investment and Management Co. aka Aimco discloses the
2006 dividend allocation for federal income tax purposes for its
Class A Common Stock and its publicly traded preferred stock.

Aimco's tax return for the year ended Dec. 31, 2006, has not yet
been filed.  As a result, the income tax allocation for the
dividends discussed below has been calculated using the best
available information as of Jan. 24, 2007.

Aimco encourages shareholders to consult with their own tax
advisors with respect to the federal, state and local income tax
effects of these dividends for federal tax laws affect taxpayers
differently, and that state and local taxation of real estate
investment trust or REIT dividends varies and may not be the
same as the taxation under the federal rules.

All 2006 dividends paid through April and a portion of the Class
A Common Stock dividend paid on May 31, 2006, were attributable
to taxable income and gains recognized in 2005.  In addition,
the Class A Common Stock dividend payable on Jan. 31, 2007, is
taxable in the 2006 year.  Information regarding excess
inclusion income is available upon request.

            Class A Common Stock (CUSIP 03748R-10-1)


Record Date:    05/19/06  08/18/06  11/17/06  12/31/06   Annual
Payable Date:   05/31/06  08/31/06  11/30/06  01/31/07
Dividend Per
Common Share:    $0.60     $0.60     $0.60     $0.60     $2.40
Taxable
Ordinary
Dividends:      1.7516%   2.4159%   2.4159%   2.4159%   2.2496%
Qualified
Dividends
(15% Rate):     2.6590%   2.0490%   2.0490%   2.0490%   2.2017%
Capital Gain
(15% Rate):    42.1657%  44.4855%  44.4855%  44.4855%  43.9048%
Unrecaptured
Sec. 1250 Gain
(25% Rate):    53.4237%  51.0496%  51.0496%  51.0496%  51.6439%
Return of
Capital:        0.0000%   0.0000%   0.0000%   0.0000%   0.0000%


Aimco Preferred Stock

       Class G Cumulative Preferred Stock (CUSIP 03748R-40-8)

Record
Date:       01/01/06   04/01/06   07/01/06   10/01/06    Annual
Payable
Date:       01/15/06   04/15/06   07/15/06   10/15/06
Dividend
Per
Common
Share:    $0.5859375 $0.5859375 $0.5859375 $0.5859375 $2.343750
Taxable
Ordinary
Dividends:   0.0000%    0.0000%    2.4159%    2.4159%   1.2079%
Qualified
Dividends
(15% Rate):  4.2676%    4.2676%    2.0490%    2.0490%   3.1583%
Capital Gain
(15% Rate): 36.0485%   36.0485%   44.4855%   44.4855%  40.2670%
Unrecaptured
Sec. 1250
Gain
(25% Rate): 59.6839%   59.6839%   51.0496%   51.0496%  55.3668%
Return of
Capital:     0.0000%    0.0000%    0.0000%    0.0000%   0.0000%


       Class Q Cumulative Preferred Stock (CUSIP 03748R-85-3)

Record Date:                         03/01/06          Annual
Payable Date:                        03/15/06
Dividend Per Share:                  $0.63125         $0.63125
Ordinary Dividends:                  0.0000%          0.0000%
Qualified Dividends (15% Rate):      4.2676%          4.2676%
Capital Gain (15% Rate):             36.0485%         36.0485%
Unrecaptured Sec. 1250 Gain
(25% Rate):                         59.6839%         59.6839%
Return of Capital:                   0.0000%          0.0000%


    Class R Cumulative Preferred Stock (CUSIP 03748R-84-6)

Record Date:               03/01/06        06/01/06      Annual
Payable Date:              03/15/06        06/15/06
Dividend Per Share:        $0.625          $0.625        $1.250
Ordinary Dividends:        0.0000%         2.4159%       1.2080%
Qualified Dividends
(15% Rate):               4.2676%         2.0490%       3.1583%
Capital Gain (15% Rate):   36.0485%        44.4855%     40.2670%
Unrecaptured Sec.
1250 Gain (25% Rate):     59.6839%        51.0496%     55.3667%
Return of Capital:         0.0000%         0.0000%      0.0000%


        Class T Cumulative Preferred Stock (CUSIP 03748R-83-8)


Record Date:    01/01/06  04/01/06  07/01/06  10/01/06   Annual
Payable Date:   01/15/06  04/15/06  07/15/06  10/15/07
Dividend Per
Common Share:    $0.50     $0.50     $0.50     $0.50     $2.00
Taxable
Ordinary
Dividends:      0.0000%   0.0000%  2.4159%   2.4159%    1.2079%
Qualified
Dividends
(15% Rate):     4.2676%   4.2676%  2.0490%   2.0490%   3.1583%
Capital Gain
(15% Rate):    36.0485%  36.0485%  44.4855%  44.4855%  40.2670%
Unrecaptured
Sec. 1250 Gain
(25% Rate):    59.6839%  59.6839%  51.0496%  51.0496%  55.3668%
Return of
Capital:        0.0000%   0.0000%   0.0000%   0.0000%   0.0000%


       Class U Cumulative Preferred Stock (CUSIP 03748R-82-0)


Record
Date:       01/01/06   04/01/06   07/01/06   10/01/06    Annual
Payable
Date:       01/15/06   04/15/06   07/15/06   10/15/06
Dividend
Per
Common
Share:     $0.484375  $0.484375  $0.484375  $0.484375 $1.937500
Taxable
Ordinary
Dividends:   0.0000%    0.0000%    2.4159%    2.4159%   1.2080%
Qualified
Dividends
(15% Rate):  4.2676%    4.2676%    2.0490%    2.0490%   3.1583%
Capital Gain
(15% Rate): 36.0485%   36.0485%   44.4855%   44.4855%  40.2670%
Unrecaptured
Sec. 1250
Gain
(25% Rate): 59.6839%   59.6839%   51.0496%   51.0496%  55.3667%
Return of
Capital:     0.0000%    0.0000%    0.0000%    0.0000%   0.0000%


       Class V Cumulative Preferred Stock (CUSIP 03748R-81-2)


Record Date:    01/01/06  04/01/06  07/01/06  10/01/06   Annual
Payable Date:   01/15/06  04/15/06  07/15/06  10/15/07
Dividend Per
Common Share:    $0.50     $0.50     $0.50     $0.50     $2.00
Taxable
Ordinary
Dividends:      0.0000%   0.0000%  2.4159%   2.4159%    1.2079%
Qualified
Dividends
(15% Rate):     4.2676%   4.2676%  2.0490%   2.0490%   3.1583%
Capital Gain
(15% Rate):    36.0485%  36.0485%  44.4855%  44.4855%  40.2670%
Unrecaptured
Sec. 1250 Gain
(25% Rate):    59.6839%  59.6839%  51.0496%  51.0496%  55.3668%
Return of
Capital:        0.0000%   0.0000%   0.0000%   0.0000%   0.0000%


     Class Y Cumulative Preferred Stock (CUSIP 03748R-79-6)


Record
Date:       01/01/06   04/01/06   07/01/06   10/01/06    Annual
Payable
Date:       01/15/06   04/15/06   07/15/06   10/15/06
Dividend
Per
Common
Share:      $0.49219   $0.49219   $0.49219   $0.49219  $1.96876
Taxable
Ordinary
Dividends:   0.0000%    0.0000%    2.4159%    2.4159%   1.2079%
Qualified
Dividends
(15% Rate):  4.2676%    4.2676%    2.0490%    2.0490%   3.1583%
Capital Gain
(15% Rate): 36.0485%   36.0485%   44.4855%   44.4855%  40.2670%
Unrecaptured
Sec. 1250
Gain
(25% Rate): 59.6839%   59.6839%   51.0496%   51.0496%  55.3667%
Return of
Capital:     0.0000%    0.0000%    0.0000%    0.0000%   0.0000%

Headquartered in Denver, Colorado, Aimco is a real estate
investment trust that owns and operates a geographically
diversified portfolio of apartment communities through 19
regional operating centers.  Aimco, through its subsidiaries,
operates 1,320 properties, including approximately 230,000
apartment units, and serves approximately one million residents
each year.  Aimco's properties are located in 47 states, the
District of Columbia and Puerto Rico.

                        *    *    *

As reported in the Troubled Company Reporter on June 9, 2006,
Fitch affirmed these ratings for Apartment Investment and
Management Company:

  AIMCO:

    -- US$900 million preferred stock 'BB+'

  AIMCO Properties L.P.:

    -- US$850 million bank credit facility 'BBB-'


B&G FOODS: COWC to Buy Cream of Wheat & Rice Brands from Kraft
--------------------------------------------------------------
B&G Foods, Inc. disclosed that on Jan. 22, 2007, along with its
newly-formed, indirect, wholly owned subsidiary COWC Acquisition
Corp., it entered into an asset purchase agreement with Kraft
Foods Global, Inc.

Pursuant to the terms of the asset purchase agreement, COWC has
agreed to purchase certain assets, including the Cream of Wheat
and Cream of Rice brands, from Kraft Foods for a purchase price
of US$200 million in cash, subject to a post-closing adjustment
based upon inventory of the business at closing.  B&G Foods has
provided to Kraft Foods a guarantee of COWC's obligations under
the asset purchase agreement.

The asset purchase agreement contains customary representations,
warranties, covenants and indemnification provisions.  Subject
to regulatory approval and the satisfaction of customary closing
conditions set forth in the asset purchase agreement, B&G Foods
expects the acquisition of the Cream of Wheat and Cream of Rice
brands to close in the first quarter of fiscal 2007.

B&G Foods expects to fund the acquisition with additional debt,
and in order to complete the acquisition, B&G Foods has received
financing commitments for senior secured debt financing from
Lehman Brothers Inc. and Credit Suisse in an amount sufficient
to fund the purchase price.  Fees and expenses related to the
acquisition and financing, which are not expected to
exceed US$5 million, will be paid by B&G Foods from cash on
hand.

A full-text copy of the Asset Purchase Agreement, dated as of
Jan. 22, 2007, among COWC Acquisition Corp., B&G Foods, Inc. and
Kraft Foods Global, Inc., is available for free at:

                 http://ResearchArchives.com/t/s?1906

                     About Kraft Foods

Kraft Foods (NYSE:KFT) -- http://www.kraft.com/-- is one of the
world's largest food and beverage companies.   Kraft Foods
markets many of the world 's leading food brands, including
Kraft cheeses, dinners and dressings; Oscar Mayer meats,
DiGiorno pizzas, Oreo cookies, Ritz crackers and chips,
Philadelphia cream cheese, Milka and Cote d'Or chocolates,
Planters nuts, Honey Bunches of Oats cereals, Jacobs, Gevalia
and Maxwell House coffees; Capri Sun, Crystal Light and Tang
refreshment beverages; and a growing range of South Beach Diet
and better-for-you Sensible Solution options.

                       About B&G Foods

B&G Foods (AMEX: BGF) -- http://www.bgfoods.com/-- and its
subsidiaries manufacture, sell and distribute a diversified
portfolio of high-quality, shelf-stable foods across the United
States, Canada and Puerto Rico.  B&G Foods' products include
jams, jellies and fruit spreads, canned meats and beans, spices,
seasonings, marinades, hot sauces, wine vinegar, maple syrup,
molasses, salad dressings, Mexican-style sauces, taco shells and
kits, salsas, pickles and peppers and other specialty food
products.  B&G Foods competes in the retail grocery, food
service, specialty store, private label, club and mass
merchandiser channels of distribution.  Based in Parsippany, New
Jersey, B&G Foods' products are marketed under many recognized
brands, including Ac'cent, B&G, B&M, Brer Rabbit, Emeril's,
Grandma's Molasses, Joan of Arc, Las Palmas, Maple Grove Farms
of Vermont, Ortega, Polaner, Red Devil, Regina, San Del, Ac'cent
Sa-Son, Trappey's, Underwood, Vermont Maid and Wright's.


B&G FOODS: Kraft Foold Deal Prompts S&P's Negative CreditWatch
-------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its existing 'B'
corporate credit rating on Parsippany, New Jersey-based B&G
Foods Holding Corp.  S&P also affirmed the 'BB-' loan and '1'
recovery ratings, and the 'CCC+' subordinated debt rating on the
company.

At the same time, S&P's senior unsecured debt rating for B&G was
placed on CreditWatch with negative implications comes after the
company's report that it has entered into an agreement to
acquire the Cream of Wheat and Cream of Rice hot cereal brands
from Kraft Food Global, Inc., for approximately US$200 million
and expectations that the transaction will be financed with
senior secured bank debt.

"The CreditWatch placement reflects the likelihood that the
senior unsecured debt rating could be lowered up to two notches
as a result of an increase in priority obligations," said
Standard & Poor's credit analyst Christopher Johnson.

Accordingly, Standard & Poor's has also placed its preliminary
senior unsecured shelf debt rating on CreditWatch with negative
implications for the same reasons.

The affirmation of B&G's existing corporate credit rating
reflects Standard & Poor's belief that the acquisition is
consistent with the company's existing financial profile.
However, following this transaction, B&G will have limited
capacity at the current ratings for additional moderate to
large size acquisitions.

The outlook remains negative.

The ratings on B&G continue to reflect its high debt levels
resulting from the company's acquisitive growth strategy and its
enhanced income securities capital structure.

B&G is a manufacturer, marketer, and distributor of a
diversified portfolio of food products, including branded
pickles, peppers, taco shells, salsa, hot sauces, maple syrup,
salad dressing, and other specialty food products.  B&G's
acquisition strategy includes buying solid yet small niche
brands that possess either No. 1 or No. 2 positions within their
categories.

Since 1998, the company has spent more than US$410 million on
mostly debt-financed acquisitions.  Most recently, the January
2006 acquisition of Grandma's Molasses bolstered the company's
existing molasses business.


NEWCOMM WIRELESS: Creditors Must File Proofs of Claim by Feb. 7
---------------------------------------------------------------
The United States Bankruptcy Court for the District of Puerto
Rico set Feb. 7, 2007, at 5 p.m. as the deadline for all persons
and entities, owed money by Newcomm Wireless Services Inc. on
account of claims arising prior to Nov. 28, 2006, to file proofs
of claim and proofs of interest.

Creditors must file written proofs of claim on or before the
Feb. 7 Claims Bar Date and those forms must be delivered to:

          Newcomm Wireless, Inc.
          c/o Logan & Company, Inc.
          546 Valley Road
          Upper Montclair, New Jersey 07043

Any proof of claim or interest submitted by facsimile or e-mail
will not be accepted and will not be deemed filed until such
proof of claim is sent through the United States mail or through
a courier.

For governmental units, the claims bar date is set for
May 28, 2007.

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


NEWCOMM WIRELESS: Puerto Rico Counsel Withdrawing from Case
-----------------------------------------------------------
Sergio A. Ramirez de Arellano Law Offices has agreed with the
Official Committee of Unsecured Creditors of Newcomm Wireless
Services, Inc., to resign as the panel's Puerto Rico counsel.

The Arellano Law Offices and the Committee said that they have
become aware that Mr. Ramirez may be placed in a conflict of
interest in the future in Newcomm Wireless' Chapter 11 case.

The Arellano Law Offices has asked the U.S. Bankruptcy Court for
the District of Puerto Rico to approve its withdrawal from the
case.

Sergio A. Ramirez de Arellano Law Offices can be reached at:

          Banco Popular Center, Suite 1133
          209 Munoz Rivera Avenue
          San Juan, PR 00918-1009
          Puerto Rico
          Phone: (787)765-2988
                      764-6392
          Fax: (787)765-2973
          E-mail: sramirez@sarlaw.com

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




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


* URUGUAY: State Firm to Invest US$90 Million in 2007
-----------------------------------------------------
Maria Simon, president of Uruguay's state-owned operator Antel,
told news service El Espectador that the firm will invest US$90
million this year.

The US$90 million amount is 29% higher compared with the US$70
million investment last year, El Espectador relates, citing Ms.
Simon.

Antel invested US$55 million in 2005, according to El
Espectador.

El Espectador underscores that most of the investment this year
will go to:

          -- expansion of broadband infrastructure,
          -- offering of new services through fixed line
             telephony, and

          -- deployment of base stations

Business News Americas emphasizes that Antel disclosed plans to
install 100 base stations to expand coverage to 70% of Uruguay.
Antel has 550 base stations and with the new deployments, almost
97% of the population will potentially have access to mobile
telephony.

Antel reported US$65 million in surpluses and 980,000 mobile
telephony clients in 2006, 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: World Court Rejects Request to Halt Blockades
--------------------------------------------------------
The International Court of Justice at The Hague denied Uruguay's
request to force Argentine pulp mill protesters to stop blocking
trhee access roads to Uruguay.

As previously reported, the construction of pulp mills along the
river bordering Uruguay and Argentina is causing
environmentalists to stage protests alleging environmental
damage.  The Argentine government brought the case to the
International Court of Justice earlier this year citing
violations to the 1975 Statute of the River Uruguay, which
states that all issues concerning the river must be agreed upon
by the two nations.  However, the court didn't find enough
evidence to support Uruguay's request to halt the pulp mills'
construction.  A final ruling about the lawfulness of the mills
is expected to take years.  Argentine protestors renewed their
protests after the World Bank decided to provide a loan to
Metsa-Botnia for the construction of the mill Fray Bentos.

According to the Court's ruling, the blockades are not harming
the rights claimed by Uruguay, the Voice of America News
relates.

The International Court of Justice is the highest court of the
United Nations established in 1946 to resolve disputes between
states.  The Court's rulings are final and not subject to
appeal.

                        *    *    *

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


ARVINMERITOR INC: S&P Lowers Ratings & Removes Negative Watch
-------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on
automotive components supplier ArvinMeritor Inc., including its
long-term corporate credit rating to 'BB-' from 'BB'.

In addition, Standard & Poor's removed the ratings from
CreditWatch, where they had been placed on Sept. 26, 2006, with
negative implications.  The 'B-1' short-term corporate credit
rating on the Troy, Michigan-based company was affirmed.

The outlook is stable.

"The downgrade reflects our expectations that ARM's financial
profile will remain weak during the next fiscal year or perhaps
longer, as it continues to face challenges in both its light
vehicle and commercial vehicle segments.  However, the stable
outlook incorporates the company's success in nearly eliminating
debt maturities until after 2011, adequate available sources of
liquidity, and expectations for some improvements in
profitability and cash flow generation due to enhanced
management focus," said Standard & Poor's credit analyst Robert
Schulz.

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.


CITGO PETROLEUM: Extends Heating Fuel Program to Wisconsin
----------------------------------------------------------
Citgo Petroleum Corp. has extended its subsidized heating fuel
supply program to Wisconsin, news agency ABN reports.

Business News Americas relates that Citgo Petroleum has been
supplying subsidized heating fuel for two years now to US
states:

          -- Delaware,
          -- Massachusetts,
          -- New York,
          -- Maine,
          -- Rhode Island,
          -- Pennsylvania, and
          -- Vermont.

Headquartered in Houston, Texas, Citgo Petroleum Corp. --
http://www.citgo.com/-- is owned by PDV America, an indirect,
wholly owned subsidiary of Petroleos de Venezuela SA, the state-
owned oil company of Venezuela.

Petroleos de Venezuela is Venezuela's state oil company in
charge of the development of the petroleum, petrochemical, and
coal industry, as well as planning, coordinating, supervising,
and controlling the operational activities of its divisions,
both in Venezuela and abroad.

                        *    *    *

Standard and Poor's Ratings Services assigned a 'BB' rating on
Citgo Petroleum Corp.

Citgo Petroleum carries Fitch's BB- Issuer Default Rating.


PETROLEOS DE VENEZUELA: Gas Output Boost Helps Thermo Plants
------------------------------------------------------------
Felix Rodriguez -- president of PDVSA Gas, a subsidiary of
state-run oil firm Petroleos de Venezuela -- told Business News
Americas that thermoelectric generation plants in Venezuela
enjoy greater access to natural gas due to increased gas
production and reduced venting and flaring.

BNamericas relates that PDVSA Gas has been devoting less gas to
Petroleos de Venezuela's secondary recovery activities.  PDVSA
Gas is also tapping artificial gas deposits in Anzoategui, where
deposits have been injected with gas to help with crude oil
extraction.

Mr. Rodriguez told BNamericas, "The natural gas deficit has
decreased to about 600 million cubic feet per day."

According to BNamericas, the gap will close further after
Colombian starts supplying natural gas to Venezuela through a
new pipeline later this year or early in 2008.

Mr. Rodriguez told BNamericas, "Thermal generation will soon be
receiving all the gas it needs."

BNamericas notes that the 300-megawatt Pedro Camejo thermo plant
is burning 30 million cubic feet per day of natural gas rather
than more expensive diesel and fuel oil.

Cadafe, the state power firm that runs Pedro Camejo, refurbished
the plant, retrofitting it with gas-burning engines, according
to the report.

BNamericas underscores that in 2006 President Hugo Chavez
launched the retooled plant, which at the time was running on
liquid fuels because gas was unavailable.

The government will add 1 gigawatt of new thermal generation
every year for the 2006-12 period, though insufficient natural
gas has precluded that goal, BNamericas states.

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

                        *    *    *

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


PETROLEOS DE VENEZUELA: Unit Inks Consulting Pact with Gazprom
--------------------------------------------------------------
Felix Rodriguez -- president of PDVSA Gas, state oil Petroleos
de Venezuela's natural gas unit -- told Business News Americas
that the firm has signed a US$15-million consulting accord with
Russia's oil and gas firm Gazprom.

The agreement will include help with the planned Gran Gasoducto
del Sur pipeline, BNamericas relates, citing Mr. Rodriguez.

Mr. Rodriguez told BNamericas, "We are using Gazprom for
technical support.  This company will help us out with their
expertise."

The agreement -- which complements previous accords signed in
2005 between Venezuela's President Hugo Chavez and Vladimir
Putin, his Russian counterpart -- is wide-ranging, BNamericas
notes, citing Mr. Rodriguez.

Mr. Rodriguez told BNamericas that the deal involves analyzing
Venezuela's gas system to absorb Gazprom's experience in
domestic and international management.

The signing of the agreement marked Mr. Rodriguez's first
official function since being appointed president of PDVSA Gas
late last year, BNamericas states.

                        About Gazprom

Headquartered in Moscow, Russia, OAO Gazprom --
http://www.gazprom.ru/eng-- produces 94% of the country's
natural gas, controls 25% of the world's reserves, and is also
the world's largest gas producer.  It focuses on gas
exploration, processing, transport, and marketing.   Standard &
Poor's Ratings Services raised on Jan. 17, 206, its long-term
corporate credit rating on OAO Gazprom to 'BB+' from 'BB'.

                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 DE VENEZUELA: Unit Handling Engineering for Gasoducto
---------------------------------------------------------------
Felix Rodriguez -- president of PDVSA Gas, state oil Petroleos
de Venezuela's natural gas subsidiary -- told Business News
Americas that the firm will handle the engineering requirements
for the Gran Gasoducto del Sur regional pipeline project.

Mr. Rodriguez commented to BNamericas, "Gasoducto del Sur is
going very well from an engineering standpoint."

BNamericas relates that Brazil, the other main partner in the
venture, will provide markets for the Venezuelan gas.  Mr.
Rodriguez said that the arrangement was agreed during a meeting
last week between Venezuela's President Hugo Chavez and Brazil's
President Luiz Inacio Lula Da Silva.

Mr. Rodriguez told BNamericas, "We are now developing [the
project] from the conceptual phase."

According to BNamericas, Venezuela estimates the Gran Gasoducto
project would cover up to 15,000 kilometers, starting in
Venezuela, crossing Brazil and ending in Argentina.

President Chavez reiterated that the gas pipeline is a
"geopolitical necessity" for regional energy integration,
BNamericas states.

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

                        *    *    *

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


                         ***********


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

Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA.  Marjorie C. Sabijon, Sheryl Joy P. Olano, Stella
Mae Hechanova, Francois Albarracin, and Christian Toledo,
Editors.

Copyright 2076.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
prior written permission of the publishers.

Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.

The TCR Latin America subscription rate is US$625 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are US$25 each.  For
subscription information, contact Christopher Beard at
240/629-3300.


           * * * End of Transmission * * *