TCRLA_Public/070202.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, February 2, 2007, Vol. 8, Issue 24

                          Headlines

A R G E N T I N A

HEXION SPECIALTY: Closes Buy of Orica's Adhesive & Resin Assets

* ARGENTINA: Grants US$240-Mil. Loan for Water Infrastructure
* ARGENTINA: Spain Mediates in Dispute with Uruguay

B A H A M A S

JETBLUE: Posts US$633MM Operating Revenues for Fourth Qtr. 2006

B E L I Z E

* BELIZE: Fuel Prices Drop by Thirty-Five Cents
* BELIZE: Holders of 93% of Debts Participate in Exchange Offer

B E R M U D A

FOCUS ENHANCED: Final General Meeting Is Set for Feb. 26
FOSTER WHEELER: Names Umberto Della Sala as President & COO
FOSTER WHEELER: F. Baseotto to Succeed J.T. La Duc as Exec. VP
GLOBAL CROSSING: Promoting Caribbean Region Development with GCN
GORTHON INTERNATIONAL: Final Shareholders Meeting Is on Feb. 20

MONTPELIER RE: Raymond Barrette Resigns as Board Director
MSD WARWICK: Shareholders to Gather for Final Meeting on Feb. 26

B O L I V I A

INTERNATIONAL PAPER: Closes Sale of Beverage Packaging Operation

* BOLIVIA: Accuses Jindal Steel of Rejecting Contract Clauses

B R A Z I L

BANCO DO BRASIL: Eyes BRL2.70B Vehicle Financing Operations
BANCO DO BRASIL: Reserves BRL2.20 Billion for Dairy Farmers
BANCO NACIONAL: Okays US$1.16B Loan for Petrobras' Ship Building
BANCO NACIONAL: Okays BRL156 Million in Loans to Bolognesi
BRASIL TELECOM: Picks Widevine to Protect IPTV Deployment

CHEMTURA CORP: Completes Acquisition of Kaufman Holdings
COMPANHIA SIDERURGICA: Discloses Share Buyback Program
COMPANHIA SIDERURGICA: S&P Affirms BB Corporate Credit Ratings
DURA AUTOMOTIVE: Court Okays Chanin Capital as Panel's Advisor
DURA AUTOMOTIVE: Judge Carey OKs Kramer Levin as Panel's Counsel

FIDELITY NATIONAL: EMC Inks Tax Processing Pact with FNTS
NOVELIS INC: Supplies Aluminum Sheet for Hood of New GMC Acadia
PETROLEO BRASILEIRO: Completes Nova Piratininga Plant Expansion
PETROLEO BRASILEIRO: Gets US$1.16-Bil. Loan for Ship Building
TELEMIG CELULAR: Parent Hires Merrill Lynch to Facilitate Sale

* BRAZIL: Sells US$500 Million Dollar Bonds Due 2037
* BRAZIL: IDB Grants US$7.15MM Loan to Improve Public Policies

C A Y M A N   I S L A N D S

ADORI HOLDINGS: Proofs of Claim Filing Deadline Is on Feb. 8
ADORI HOLDINGS: Shareholders to Gather for Feb. 8 Final Meeting
ADROIT PRIVATE: Final General Meeting Is Set for Feb. 8
ANOM LTD: Deadline for Proofs of Claim Filing Is on Feb. 8
ARARA HOLDINGS: Calls Shareholders for Feb. 8 Final Meeting

ATTICA ASSET: Proofs of Claim Filing Deadline Is on Feb. 8
BAREP SYSTEMATIC: Last Day to File Proofs of Claim Is on Feb. 8
CAMARILLA INVESTMENTS: Proofs of Claim Filing Is Until Feb. 8
CAMEL INVESTMENTS: Proofs of Claim Must be Filed by Feb. 8
DRYDEN III: Last Day to File Proofs of Claim Is on Feb. 8

DRYDEN LEVERAGED: Deadline for Proofs of Claim Filing Is Feb. 8
HEJAZ INVESTMENT: Proofs of Claim Must be Filed by Feb. 8
JME OFFSHORE: Creditors Must File Proofs of Claim by Feb. 8
LUBICE FINANCE: Claims Filing Deadline Is Set for Feb. 8
LUBICE FINANCE: Shareholders to Gather for Feb. 8 Final Meeting

MINCS-MAGNUM: Filing of Proofs of Claim Is Until Feb. 8
SAPIC 98: Shareholders to Convene for Feb. 8 Final Meeting
SEQUILS-MAGNUM: Creditors Must Submit Proofs of Claim by Feb. 8
SITKA INVESTMENTS: Proofs of Claim Must be Filed by Feb. 8
SOFOS CAPITAL: Final Shareholders Meeting Is Set for Feb. 8

STOCKLORD INVESTMENTS: Proofs of Claim Filing Is Until Feb. 8
VHC EUROPEAN: Last Day for Proofs of Claim Filing Is on Feb. 8
VHC EUROPEAN EVENT: Proofs of Claim Filing Deadline Is Feb. 8
VHC MASTER: Deadline for Proofs of Claim Filing Is on Feb. 8
VHC RESTRUCTURING: Last Day to File Proofs of Claim Is on Feb. 8

C O L O M B I A

ARMOR HOLDINGS: Posts US$38 Million Net Income in Fourth Quarter

C O S T A   R I C A

US AIRWAYS: Withdraws Delta Air Merger Proposal
US AIRWAYS: Withdrawn Delta Bid Cues S&P to Affirm Ratings

* COSTA RICA: Mulling to Speed Up International Pact Approval

C U B A

* CUBA: Has Over 350,000 Participants in Agriculture Program

D O M I N I C A N   R E P U B L I C

* DOMINICAN REPUBLIC: Central Bank Issuing DOP1.5B Certificates

E C U A D O R

* ECUADOR: Bonds Rise on Statement to Seek Friendly Accord
* ECUADOR: Farmers Seek Imports & Exports Nationalization

H O N D U R A S

CONTINENTAL AIRLINES: To Add US$35 Million to Pension Plans
CONTINENTAL AIRLINES: Issues 4.26 Million Shares of Common Stock

* HONDURAS: Files Claim Over Fuel Storage Price on Failed Talks

J A M A I C A

AIR JAMAICA: Cabinet Approves Restructuring Plan
KAISER ALUMINUM: Competes Secondary Offering of Common Stock

M E X I C O

AFFILIATED COMP: Wins Automation Pact on Mexico Fare Collection
BALDOR ELECTRIC: Completes Acquisition of Reliance Electric
CELESTICA INC: Weak Results Cue S&P to Put Ratings on Watch
DELTA AIR: Unofficial Panel Upset by Official Panel's Rejection
DELTA AIR: US Airways Withdraws Merger Proposal

DELTA AIR: CEO Comments on Creditors' Committee Support for Plan
DELTA AIR: S&P Holds D Rating on Withdrawn US Airways Offer
GRUPO MEXICO: Investing Part of Cash Reserves in Railroad
KRISPY KREME: Daryl Brewster & Charles Blixt Elected on Board
REMY INT: To Sell Remanufacturing Asset & Systems to Caterpillar

SATELITES MEXICANOS: To Receive Non-Binding Bids by March

* MEXICO: Cantarell's Daily Output Declines by 500,000 Barrels

N I C A R A G U A

* NICARAGUA: Vice President Overseeing Business & Investments

P A N A M A

SOLO CUP: S&P Holds CCC- Rating on Second-Lien Term Loan

P E R U

* PRIDE INT'L: To Pay Back Taxes of US$32.5 Million to Seniat
* PERU: Perupetro Secured US$690 Mil. from 16 Contracts in 2006

P U E R T O   R I C O

DORAL FIN'L: Pays Cash Dividend on 4 Series of Preferred Stock
FIRSTBANK PUERTO RICO: Scotiabank To Buy Bank, Analyst Says
NEWCOMM WIRELESS: Committee Seeks to Retain Foley as Counsel
PILGRIM'S PRIDE: Declares 2-1/4 Per Share Quarterly Dividend
PILGRIM'S PRIDE: Incurs US$8.7MM Net Loss in Qtr. Ended Dec. 30

SUNCOM WIRELESS: Reaches Consensual Agreement with Bondholders

T R I N I D A D   &   T O B A G O

HILTON HOTELS: Reports Strong Results for Quarter Ended Dec. 31
HILTON HOTELS: Fitch Upgrades Debt Ratings to BB+ from BB
HILTON HOTELS: S&P Places BB Corp. Credit Rating on CreditWatch

U R U G U A Y

* URUGUAY: Spanish Envoy Mediates in Dispute with Argentina

V E N E Z U E L A

PETROLEOS DE VENEZUELA: Halts Operations at Puerto La Cruz Plant

* VENEZUELA: Analysts Say Movilnet Must be Separated from Cantv
* VENEZUELA: May Pay Verizon Less Than US$677MM for Cantv Stake
* VENEZUELA: President to be Able to Make Oil & Gas Decrees


                         - - - - -


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


HEXION SPECIALTY: Closes Buy of Orica's Adhesive & Resin Assets
---------------------------------------------------------------
Hexion Specialty Chemicals, Inc., has completed its purchase of
the adhesives and resins business of Orica Limited.  The
purchase price was not disclosed.

The Orica adhesives and resins business manufactures
formaldehyde and formaldehyde-based binding resins used
primarily in the forest products industry.  The business
includes three manufacturing facilities located in Deer Park
(Victoria) Australia, and Mountview and Hornby, New Zealand.
The business had 2005 sales of US$104 million and employs 100
people.

"We are delighted to complete this transaction and welcome the
business and its associates into Hexion," said Craig O.
Morrison, Chairman and CEO.  "This acquisition strengthens our
presence in the Asia-Pacific region and will enable us to expand
our service to the forest products marketplace."

The Orica business produces formaldehyde and downstream resin
systems including urea-formaldehyde, melamine-formaldehyde,
phenol-formaldehyde and additional formulations.  These products
are used primarily to produce wood panels such as particleboard,
medium-density fiberboard and plywood.  Its resins also are used
in overlays for laminates and veneers, in engineered timber
products such as laminated veneer lumber and finger joinery, and
in insulation applications.

                    About Orica Limited

Orica is a publicly listed Australian company operating in over
50 countries with annual sales of about US$3 billion. It is the
leader in its chosen markets, globally in commercial explosives
and regionally in chemicals and paints.

                  About Hexion Specialty

Based in Columbus, Ohio, Hexion Specialty Chemicals Inc.
-- http://hexionchem.com/-- manufactures and markets resins,
inks, coating and adhesive resins, formaldehyde, oil field
products and other specialty and industrial chemicals worldwide.
At Sept. 30, 2006, the company has 103 production and
manufacturing facilities, of which 38 are located in the U.S.
In Latin America, the company has operations in Argentina,
Brazil and Colombia.

                        *    *    *

As reported in the Troubled Company Reporter on Oct. 23, 2006,
Standard & Poor's Ratings Services lowered its corporate credit
rating on Hexion Specialty Chemicals Inc. to 'B' from 'B+'.  The
outlook is stable.  S&P also lowered the rating on the existing
US$225 million first-lien senior secured revolving credit
facility to 'B' from 'B+'.

As reported in the Troubled Company Reporter on Oct. 19, 2006,
Moody's Investors Service assigned B3 ratings to the new
guaranteed senior secured second lien notes due 2014 of Hexion
Specialty Chemicals Inc.


* ARGENTINA: Grants US$240-Mil. Loan for Water Infrastructure
-------------------------------------------------------------
The Inter-American Development Bank approved a US$240 million
loan to Argentina for a program to improve the use of water
resources in the northern provinces of Tucuman, Jujuy, Santiago
del Estero, Catamarca and Chaco.

The program will be carried out by the Ministry of Federal
Planning, Public Investment and Services, and will focus on
hydraulic infrastructure for production, water and sewer
systems, and operational and institutional strengthening.

Through hydraulic works projects for agricultural production and
multiple uses, 95,000 new hectares will be converted to
irrigated farmland.  Public utility projects will help one
million people gain better access to water and more than 55,000
persons will be connected to the sewer system, expanding the
coverage of basic sanitation services for low-income
communities.  Flood protection and control for 70,000 persons
will prevent damages to private property and public
infrastructure.

"This program has been designed to solve, through specific
projects, problems such as flooding in Tucuman; scarcity of
irrigation water in Santiago del Estero and Jujuy; lack of water
regulation structures in Tucuman, Jujuy and Santiago del Estero;
and contamination of water resources and limited water and
sanitation services in Catamarca and Chaco," said IDB Team
Leader Gabriel Montes.  The program also seeks to improve the
management of water companies in order to strengthen their
capacity to regulate and control the use and sustainable
management of water resources.

"Upon completion, works executed under this program will be
transferred to the provinces, through the companies or entities
that will operate and maintain them," said Mr. Montes.
"Regulations and monitoring will ensure the environmentally
sustainable use of water resources."

This project is part of a broader policy of the Argentine
government to develop and integrate the so-called Norte Grande
region through national IDB-financed infrastructure investments
to support production. Accordingly, this program will be
implemented alongside two other operations for electricity and
road infrastructure.  Another operation to support the
competitiveness of the region by focusing on the main production
chains is already under way.

The loan is for a 25-year period, with a six-year grace period,
at a variable interest rate.

Local counterpart funds for this loan total 60 million dollars.

                        *    *    *

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


* ARGENTINA: Spain Mediates in Dispute with Uruguay
---------------------------------------------------
Juan Antonia Yanez Barnueo, Spain's envoy ambassador to mediate
between Argentina and Uruguay's pulp mill construction dispute,
met Monday Argentine Foreign Affairs Minister Jorge Taiana for a
third round of talks.  He then met Tuesday Uruguayan Foreign
Affairs Minister Reinaldo Gargano to discuss the conflict and
come up with a possible solution.

The neighboring countries are at odds over the construction of
two pulp mills along their river border.

The Argentine government and environmental groups are protesting
the mills' alleged adverse effect on marine life at their river
border.  Uruguay argued that studies have been made ascertaining
the safety of the river habitat and measures would be taken to
ensure that the mills won't pollute the river.

Argentina also claims Uruguay violated the 1975 Statute of the
River Uruguay, which states that all issues concerning the river
must be agreed upon by the two nations.

The matter has been brought to the International Court of
Justice at The Hague.  A preliminary ruling was issued in favor
of Uruguay.  The ruling, along with a financing from the World
Bank, renewed a series of protests and blockades of access roads
leading to Uruguay.

Merco Press says Argentina expressed "its full willingness" to
dialogue with Uruguay in order to find a solution to their
dispute.

Uruguay has previously refused to dialogue unless Argentine
protesters are stopped from blockading access to Uruguay.
However, the International Court does not think the protests are
materially damaging to Uruguay.  For the Argentine government's
part, it said in reports that it won't force its citizens to
stop picketing because it is within their rights of free
expression.

According to Merco Press, the possible solutions to the dispute
are:

   -- construction of a 30-km long pipeline
      down the River Uruguay through which, the
      wastes coming from the mills would be
      pumped;

   -- reshaping to help limit the plant visual
      contamination (huge chimney) from the
      Argentine side; and

   -- construction of an additional drain that
      be jointly financed by Argentina, Uruguay
      and Spain.

                        *    *    *

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


JETBLUE: Posts US$633MM Operating Revenues for Fourth Qtr. 2006
---------------------------------------------------------------
JetBlue Airways Corp. reported results for the fourth quarter
and full year 2006:

   * Operating revenues for the quarter totaled US$633 million,
     representing growth of 42.1% over operating revenues of
     US$446 million in the fourth quarter of 2005.  For the full
     year, operating revenues totaled US$2.36 billion,
     representing growth of 38.9% over operating revenues of
     US$1.70 billion for the full year 2005.

   * Operating income for the quarter was US$64 million,
     resulting in a 10.2% operating margin, compared with an
     operating loss of US$31 million and a negative 7.1%
     operating margin in the fourth quarter of 2005.  For the
     full year 2006, operating income was US$127 million,
     resulting in an operating margin of 5.4%.  This compares
     with operating income of US$48 million and a 2.8%
     operating margin for the full year 2005.

   * Pre-tax income for the quarter was US$30 million,
     compared with a pre-tax loss of US$55 million in the
     year-ago period.  For the full year, pre-tax income was
     US$9 million, compared with a pre-tax loss of US$24 million
     for the full year 2005.

   * Net income for the quarter was US$17 million, representing
     earnings of US$0.10 per diluted share, compared with fourth
     quarter 2005 net loss of US$42 million, or a loss of
     US$0.25 per diluted share.  For the full year 2006, net
     loss totaled US$1 million, or US$0.00 per diluted share,
     compared with a net loss of US$20 million, or a loss of
     US$0.13 per diluted share, for the full year 2005.

"I'm tremendously proud of the efforts our crewmembers have made
in advancing our plan to institutionalize low-cost carrier
spending habits and improve revenue overall -- we've made great
progress since the beginning of 2006," said David Neeleman,
JetBlue's Chairman and CEO. "We are optimistic about what lies
ahead as we seek to further improve our financial and operating
performance."

During the fourth quarter of 2006, JetBlue achieved a completion
factor of 99.6% of scheduled flights versus 98.9% in the fourth
quarter of 2005.  On-time performance, defined by the US
Department of Transportation as arrivals within 14 minutes of
schedule, was 68.4% in the fourth quarter of 2006 compared with
70.9% for the same period in 2005.  For the full year 2006,
JetBlue achieved a completion factor of 99.5%, compared with
99.2% in the full year 2005.  On-time performance for the full
year 2006 was 72.8%, compared with 71.4% for the full year 2005.
The company attained a load factor in the fourth quarter of 2006
of 79.7%, a decrease of 1.4 points on a capacity increase of
14.5% over the fourth quarter of 2005.  Load factor for the full
year 2006 was 81.6%, a decrease of 3.6 points on a capacity
increase of 20.6%.

Dave Barger, JetBlue's President and COO, commented, "The
JetBlue team, now 11,000 strong, rose to the occasion and met
the difficult operational and financial challenges of 2006.  The
creativity and innovation of our crew members positions us well
for 2007, a year in which we plan to grow capacity eleven to
fourteen percent, while continuing to enhance the JetBlue
Experience."

For the fourth quarter, yield per passenger mile was 10.21
cents, up 25.0% compared with 2005. Operating revenue per
available seat mile (RASM) increased 24.1% year-over-year to
8.71 cents. Revenue passenger miles increased 12.4% from the
fourth quarter of 2005 to 5.8 billion. Available seat miles grew
14.5% to 7.3 billion. Operating expenses for the fourth quarter
were US$569 million, up 19.1% from the fourth quarter of 2005.
Operating expense per ASM (CASM) for the fourth quarter 2006
increased 4.1% year-over-year to 7.82 cents, while average stage
length decreased 17.9%.  Excluding fuel, CASM increased 2.3% to
5.24 cents.  During the quarter, realized fuel price was US$1.92
per gallon, a 2.8% increase over fourth quarter 2005 realized
fuel price of US$1.87.  JetBlue ended the fourth quarter and
full year with US$699 million in cash and investment securities.

Looking ahead, for the first quarter of 2007, JetBlue expects to
report an operating margin between two and four percent based on
an assumed aircraft fuel cost per gallon of US$1.91, net of
hedges.  Pre-tax margin for the quarter is expected to be
between negative four and negative two percent.  CASM is
expected to increase between six and eight percent over the
year-ago period.  Excluding fuel, CASM in the first quarter is
expected to increase between four and six percent year over
year.  Capacity is expected to increase between 14 and 16
percent in the first quarter and stage length is expected to
decrease roughly 14 percent over the same period last year.

For the full year 2007, JetBlue expects to report an operating
margin between 10 and 12 percent based on an assumed aircraft
fuel cost per gallon of US$1.93, net of hedges.  Pre-tax margin
for the full year is expected to be between five and seven
percent.  CASM for the full year is expected to increase between
five and seven percent over full year 2006.  Excluding fuel,
CASM in 2007 is expected to increase between seven and nine
percent year over year.  Capacity for the full year 2007 is
expected to increase between 11 and 14 percent over 2006 and
stage length is expected to decrease roughly seven percent over
full year 2006.  The CASM and ex-fuel CASM guidance in both the
first quarter and full year includes the impact of the reduction
in seats on JetBlue's A320 aircraft from 156 to 150 seats per
aircraft.

Based in Forest Hills, New York, JetBlue Airways Corp.
(Nasdaq:JBLU) -- http://www.jetblue.com/-- provides passenger
air transportation services primarily in the United States.  As
of Feb. 14, 2006, the Company operated approximately 369 daily
flights serving 34 destinations in 15 states, Puerto Rico, the
Dominican Republic, and the Bahamas.  The Company also provides
in-flight entertainment systems for commercial aircraft,
including live in-seat satellite television, digital satellite
radio, wireless aircraft data link service, and cabin
surveillance systems and Internet services, through its wholly
owned subsidiary, LiveTV, LLC.

                        *    *    *

As reported in the Troubled Company Reporter on Nov. 23, 2006,
Moody's Investors Service assigned ratings of Caa1 (LGD5, 88%)
to the approximately US$40 million of Special Facility Revenue
Bonds, Series 2006 (JetBlue Airways Corporation Project or the
JFK Facility Bonds) to be issued by the New York City Industrial
Development Agency.  Moody's affirmed the B2 corporate family
rating for JetBlue Airways Corp.  Moody's said the outlook
remains negative.

Standard & Poor's Ratings Services assigned its 'B' rating to
US$40 million of New York City Industrial Development Agency
special facility revenue bonds, series 2006 maturing on May 15,
2021, and May 15, 2030; the amount for each maturity have yet to
be determined.  The bonds, which will be used to finance a
hangar and other facilities, will be serviced by payments made
by JetBlue Airways Corp. (B/Stable/B-3) under a lease between
the airline and the agency.




===========
B E L I Z E
===========


* BELIZE: Fuel Prices Drop by Thirty-Five Cents
-----------------------------------------------
Belize has faced a cut in its fuel prices.  Service stations'
prices have dropped by as much as 35 cents, PetrolWorld reports.

According to the same report the prices on these different fuel
products became effective last week:

   -- premium fuel: to US49.39 from US$9.74,
   -- regular fuel: to US$9.33 from US$9.56,
   -- kerosene price maintained at US$6.11 per gallon, and
   -- diesel price remains at US$6.90.

The price drop is due to government's commitment to pass on
savings to consumers from a decrease in the costs of imported
fuel, PetrolWorld relates.

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 11, 2006,
Standard & Poor's Ratings Services revised its long-term foreign
currency sovereign credit rating on Belize to 'SD' from 'CC/C'.

Standard & Poor's also said that it revised to 'D' its long-term
foreign currency ratings on the rated bonds that are included in
a proposed exchange.

In addition, Standard & Poor's affirmed its 'CCC+/C' local
currency sovereign credit rating on Belize.


* BELIZE: Holders of 93% of Debts Participate in Exchange Offer
---------------------------------------------------------------
The Government of Belize disclosed that the holders of the
country's public external commercial indebtedness have
overwhelmingly agreed to exchange their existing claims against
the country for new bonds to be issued by Belize maturing 2029.

The exchange offer was launched on Dec. 18, 2006.  Holders of
the affected debts had until Jan. 26, 2007, to tender their
claims into the exchange.

Holders of more than 93% of the debts eligible to participate in
the exchange offer (excluding two loans that benefited from an
insurance policy issued by a third party) have accepted the
offer.

A closing of the exchange is scheduled to take place on
Feb. 20, 2007.

Carla Barnett, the Financial Secretary of Belize, said, "The
Government of Belize is extremely pleased with the outcome of
this exchange offer. It provides a significant degree of debt
relief to Belize and firmly places our debt service profile on a
sound and sustainable footing.  We understand that the only
remaining commercial creditor of any significant size (the
holder of the insured loans) is currently in discussions with
the other parties involved in those transactions.  We expect
that those arrangements will be completed in time to permit the
insured loans to participate in the exchange offer."

"Belize approached this debt restructuring in a fully
transparent and co-operative manner," said Mark Espat, Minister
of National Development.  "Our creditors have reciprocated. We
recognise -- and we appreciate -- their cooperation.  The level
of debt relief requested by Belize was necessary and
proportionate to the financial situation facing the country.  By
their positive response to the exchange offer, our creditors
have confirmed that Belize has made a convincing case for the
financial terms of the offer."

The new bonds to be issued by Belize will amortise in equal and
semi-annual instalments commencing 2019, with final maturity due
2029.  The new bonds will carry a coupon of 4.25% for the first
three years, 6.00% for years four and five, rising to 8.50% in
year seven through to maturity.

Houlihan Lokey Howard & Zukin acted as the financial advisors to
the Government of Belize in the transaction.

D.F. King & Co. acts as the information agent.

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 11, 2006,
Standard & Poor's Ratings Services revised its long-term foreign
currency sovereign credit rating on Belize to 'SD' from 'CC/C'.

Standard & Poor's also said that it revised to 'D' its long-term
foreign currency ratings on the rated bonds that are included in
a proposed exchange.

In addition, Standard & Poor's affirmed its 'CCC+/C' local
currency sovereign credit rating on Belize.




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


FOCUS ENHANCED: Final General Meeting Is Set for Feb. 26
--------------------------------------------------------
Focus Enhanced Arbitrage Fund, Ltd.'s final general meeting will
be at 9:30 a.m. on Feb. 26, 2007, or as soon as possible, at the
liquidator's place of business.

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

The liquidator can be reached at:

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


FOSTER WHEELER: Names Umberto Della Sala as President & COO
-----------------------------------------------------------
Foster Wheeler Ltd.'s board of directors has elected Umberto
della Sala to the position of president and chief operating
officer, effective immediately.  In this newly created role, Mr.
della Sala will report directly to Raymond J. Milchovich,
chairman and chief executive officer, and will assume full
responsibility for the company's two business groups:

   -- the Global Engineering and Construction (E&C) Group and
   -- the Global Power Group.

"Umberto is a 33-year veteran of Foster Wheeler.  He has served
in a variety of engineering, commercial and operational roles in
both Europe and North America, and has an excellent, in-depth
knowledge of the contracting business," said Mr. Milchovich.
"Umberto has proven himself as a strong, experienced, and
visionary leader.  Under his leadership as chief executive
officer of our Global E&C Group, the Group has delivered an
outstanding operational and business-winning performance and
also has achieved a significant and well-managed growth in
capacity.  Previously, as president and chief executive officer
of the Global E&C Group's Continental Europe business unit,
Umberto dramatically improved the business unit's financial
performance, consistently met or exceeded client expectations,
and built a world-class management team.

"As well as continuing to lead the Global E&C Group, Umberto
will assume immediate and full responsibility for the Global
Power Group.  Having assumed the position of acting chief
executive officer of the Global Power Group in June 2006, I will
work closely with Umberto over the next six to eight months to
ensure a successful transition.  We have already made
significant operational changes during the last year in the
Global Power Group and Umberto will drive the transfer of
industry best practices, which are already deeply embedded in
the Global E&C Group's operations, into the Global Power Group's
operations.  I am highly confident that Umberto will continue to
deliver a very significant contribution to the future growth and
success of Foster Wheeler."

Headquartered in Hamilton, Bermuda, Foster Wheeler Ltd. --
http://www.fwc.com/-- offers a broad range of engineering,
procurement, construction, manufacturing, project development
and management, research and plant operation services.  Foster
Wheeler serves the refining, upstream oil and gas, LNG and gas-
to-liquids, petrochemical, chemicals, power, pharmaceuticals,
biotechnology and healthcare industries.

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 18, 2006,
Standard & Poor's Ratings Services revised its outlook on Foster
Wheeler Ltd. to positive from stable.

At the same time, Standard & Poor's affirmed its 'B+' corporate
credit rating and other ratings on the Clinton, New Jersey-based
engineering and construction company.  The company had about
US$217 million of total debt at Sept. 29, 2006.


FOSTER WHEELER: F. Baseotto to Succeed J.T. La Duc as Exec. VP
--------------------------------------------------------------
Foster Wheeler Ltd.'s board of directors has elected Franco
Baseotto to the position of executive vice president and chief
financial officer, effective Aug. 13, 2007.  John T. La Duc, who
currently holds this role, was elected to this position in April
2004.  Mr. La Duc has agreed to extend his current contract to
continue in this position until August 2007 and to work closely
with Mr. Baseotto to ensure a smooth transition.  Upon assuming
his new position in August 2007, Mr. Baseotto will report
directly to Raymond J. Milchovich, chairman and chief executive
officer.

"Franco is a highly talented and widely respected individual. In
his current role as financial leader of our Global Engineering
and Construction (E&C) Group, and chief financial officer of our
Global E&C Group's Continental Europe business unit, he has
proven that he is eminently well-qualified to assume this
position," said Mr. Milchovich.  "Franco has been with Foster
Wheeler for sixteen years.  He has worked in Europe and in North
America and has developed an in-depth knowledge of all aspects
of finance and accounting, the contracting business, and our
Company at a corporate and operational level.  I am highly
confident that Franco will continue to deliver the same
commitment and success in his new role.

"John La Duc joined Foster Wheeler at a very critical time for
this Company and I would like to thank him for his energy,
commitment and outstanding contribution to its successful
transformation.  I am delighted that John has agreed to extend
his contract with Foster Wheeler to work with Franco to ensure a
smooth and successful transition."

Headquartered in Hamilton, Bermuda, Foster Wheeler Ltd. --
http://www.fwc.com/-- offers a broad range of engineering,
procurement, construction, manufacturing, project development
and management, research and plant operation services.  Foster
Wheeler serves the refining, upstream oil and gas, LNG and gas-
to-liquids, petrochemical, chemicals, power, pharmaceuticals,
biotechnology and healthcare industries.

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 18, 2006,
Standard & Poor's Ratings Services revised its outlook on Foster
Wheeler Ltd. to positive from stable.

At the same time, Standard & Poor's affirmed its 'B+' corporate
credit rating and other ratings on the Clinton, New Jersey-based
engineering and construction company.  The company had about
US$217 million of total debt at Sept. 29, 2006.


GLOBAL CROSSING: Promoting Caribbean Region Development with GCN
----------------------------------------------------------------
Global Crossing is working with Global Caribbean Network or GCN,
a subsea cable operator headquartered in Guadeloupe, French West
Indies, to enhance global IP connectivity to the Caribbean
region.

Under the terms of several agreements, GCN will interconnect its
voice and data traffic services arriving from the Caribbean to
Global Crossing's IP network in St. Croix, via 10-Gigabit
wavelengths, enabling GCN to extend its services to North
America, Europe and Asia.  Primarily based in the Caribbean,
GCN's customers will now gain access to Global Crossing's state-
of-the-art global network, so they can connect to any of the 600
cities in 60 countries where Global Crossing delivers services.

At the same time, through the interconnection with GCN, Global
Crossing will now be able to offer its own customers services in
13 additional countries in the Caribbean.

"Global Crossing's services support our plans to offer Caribbean
residential and commercial users a more advanced telecom
infrastructure," said Ehsan Emami, GCN's president.  "Our
customers will benefit from a fast and reliable network, where
all data, voice, video and multimedia traffic can converge to a
single global backbone."

"We're excited about this opportunity to work with GCN as it
begins to offer local and international operators broadband
services in the Caribbean region," said Jose Antonio Rios,
Global Crossing's international president.  "Our combined
capabilities reinforce our commitment to accelerate deployment
of our services to the region."

GCN is a subsidiary of Groupe Loret, an enterprise conglomerate
responsible for different businesses in various segments,
including real estate, communications, automotive, and air
transportation, among others.  GCN began offering its commercial
services in the Caribbean in October 2006 through the official
launch of the first phase of its GCN-1 system, which connects
Guadeloupe, St. Martin, St. Barthelemy, San Juan and St. Croix.
It is currently expanding its reach further south in the
Caribbean to:

   -- Dominica,
   -- Martinique,
   -- St. Kitts,
   -- Antigua,
   -- St. Lucia,
   -- St. Vincent,
   -- Barbados,
   -- Grenada and
   -- Trinidad

as part of the second and third phases of the project, in 2007.

According to a 2006 Telecommunications Industry Review study,
the Caribbean is one of the fastest growing broadband markets in
the world. To accommodate this rapidly expanding demand in Latin
America and the Caribbean region, Global Crossing recently
announced that it will upgrade its Mid-Atlantic Crossing or MAC
system, which connects North America to Latin America through
the Caribbean.  Global Crossing's MAC ring, which runs between
Brookhaven, NY; Hollywood, FL; and St. Croix, Virgin Islands, is
an essential piece of the company's advanced, global network.

"Global Crossing is committed to the Caribbean region and is
uniquely positioned to serve companies like GCN, that require
global connectivity," commented Dale Miller, Global Crossing's
senior vice president for carrier sales in Latin America.  "By
choosing Global Crossing, GCN has improved its network
functionality, enhanced its flexibility and expanded its reach
around the world."

Global Crossing's carrier services portfolio is strategically
positioned to meet the needs of carriers building networks or
buying services to meet the needs of their consumer or business
customers. Global Crossing sells 2.5 to 10 Gigabit wavelengths,
private line circuits, dark fiber and indefeasible rights to
use.

             About Global Caribbean Network

Global Caribbean Network aka GCN is a new cable operator in the
Caribbean region.  It is a subsidiary of Groupe Loret, one of
the main players in the French West Indies and Guiana economies,
with sales of 500 million euros in 2005. GCN has been awarded a
Public Service Delegation contract by the Regional Council of
Guadeloupe (FWI) to build and operate a new submarine cable
linking Guadeloupe, Puerto Rico, St.Croix, St. Martin and St.
Barthelemy to the rest of the world.

                   About Global Crossing

Headquartered in Florham Park, New Jersey, Global Crossing Ltd.
-- http://www.globalcrossing.com/-- provides telecommunication
services over the world's first integrated global IP-based
network, which reaches 27 countries and more than 200 major
cities around the globe including Bermuda, Argentina, Brazil,
and the United Kingdom.  Global Crossing serves many of the
world's largest corporations, providing a full range of managed
data and voice products and services.  The company filed for
chapter 11 protection on Jan. 28, 2002 (Bankr. S.D.N.Y. Case No.
02-40188).  When the Debtors filed for protection from their
creditors, they listed $25,511,000,000 in total assets and
US$15,467,000,000 in total debts.  Global Crossing emerged from
chapter 11 on Dec. 9, 2003.

At Sept. 30, 2006, Global Crossing Ltd.'s balance sheet
showed a US$131 million stockholders' deficit, compared to a
US$173 million stockholders' deficit at Dec. 31, 2005.


GORTHON INTERNATIONAL: Final Shareholders Meeting Is on Feb. 20
---------------------------------------------------------------
Gorthon International Shipping Ltd.'s final general meeting will
be at 10:00 a.m. on Feb. 20, 2007, or as soon as possible, at
the liquidator's place of business.

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

The liquidator can be reached at:

             Gemma A. Morrison
             Cox Hallett Wilkinson, Milner House
             18 Parliament Street
             Hamilton, Bermuda


MONTPELIER RE: Raymond Barrette Resigns as Board Director
---------------------------------------------------------
Montpelier Re Holdings Ltd. disclosed that Raymond Barrette has
resigned as a director of the company with immediate effect
following his recent election as Chairman and CEO of White
Mountains Insurance Group, Ltd.

Anthony Taylor, Chairman and Chief Executive said, "We are
grateful to Ray for his wise counsel and support since the
formation of the company.  We wish him every success in his new
role."

Headquartered in Bermuda, Montpelier Re Holdings Ltd., through
its operating subsidiary Montpelier Reinsurance Ltd., is a
premier provider of global property and casualty reinsurance and
insurance products.  During the year ended Dec. 31, 2005,
Montpelier underwrote US$978.7 million in gross premiums
written.  Shareholders' equity at Dec. 31, 2005, was US$1.1
billion.

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 19, 2006,
A.M. Best affirms these ratings on Montpelier Re Holdings:

Montpelier Re Holdings Ltd.

   -- "bbb-" on senior unsecured debt;
   -- "bb+" on subordinated debt; and
   -- "bb" on preferred stock.

   MRH Capital Trust I and II (guaranteed by Montpelier Re
   Holdings Ltd.)

   -- "bb" on preferred securities.


MSD WARWICK: Shareholders to Gather for Final Meeting on Feb. 26
----------------------------------------------------------------
MSD Warwick (Manufacturing) Ltd.'s final general meeting will be
at 9:30 a.m. on Feb. 26, 2007, or as soon as possible, at the
liquidator's place of business.

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

The liquidator can be reached at:

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




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


INTERNATIONAL PAPER: Closes Sale of Beverage Packaging Operation
----------------------------------------------------------------
International Paper completed the sale of its North American
beverage packaging operations to Carter Holt Harvey Limited for
approximately US$413 million.

In December 2006, the company agreed to sell its entire beverage
packaging business to New Zealand-based Carter Holt Harvey.  The
North American portion of the sale, completed today, represents
the majority of the business.  The beverage packaging business
also includes wholly owned subsidiaries in China, South Korea
and Taiwan, and joint ventures in Latin America, Israel, and
Saudi Arabia.  The sale of these assets to Carter Holt Harvey is
expected to close later in the first quarter, at which time
International Paper will receive the remainder of the proceeds
from the transaction.

The North American beverage packaging assets include gable-top
beverage converting facilities in:

   -- California,
   -- Florida,
   -- Massachusetts,
   -- Michigan,
   -- North Carolina,
   -- Ontario and Quebec, Canada,
   -- the Evergreen Packaging manufacturing facility in Iowa,
      and
   -- the Pine Bluff mill in Arkansas.

Based in Stamford, Connecticut, International Paper Co. (NYSE:
IP) -- http://www.internationalpaper.com/-- is in the forest
products industry for more than 100 years.  The company is
currently transforming its operations to focus on its global
uncoated papers and packaging businesses, which operate and
serve customers in the US, Europe, South America and Asia.  Its
South American operations include, among others, facilities in
Argentina, Brazil, Bolivia, and Venezuela.  These businesses are
complemented by an extensive North American merchant
distribution system.  International Paper is committed to
environmental, economic and social sustainability, and has a
long-standing policy of using no wood from endangered forests.

                        *    *    *

Moody's Investors Service assigned a Ba1 senior subordinate
rating and Ba2 Preferred Stock rating on International Paper Co.
on Dec. 5, 2005.


* BOLIVIA: Accuses Jindal Steel of Rejecting Contract Clauses
-------------------------------------------------------------
The Bolivian government has alleged that Jindal Steel and Power
rejected some of the clauses of its US$2.3-billion contract with
Bolivia to develop El Mutun mines, The Economic Times reports.

Jindal Steel refused to issue a US$100-million guarantee to the
Bolivian state to back investments at El Mutun, The Economic
Times notes, citing the government.

The Economic Times underscores that the government refused to
subsidize natural gas, as demanded by Jindal Steel.

One of the Bolivian ministers told the local press, "We are not
going to do that because subsidizing gas for them to use our
iron ore will be a betrayal of the country."

The Bolivian mining minister Guillermo Dalence hinted to The
Economic Times that the government is considering new partners
to develop El Mutun.

An industry analyst had commented to The Economic Times, "Though
it is too early to say now, but if Tata Steel is interested in
this, it may alter the equations in the race for Corus.  One of
the biggest plus points for its rival Companhia Siderurgica
Nacional is the latter's iron ore mines in Brazil."

The Economic Times says that steel manufacturers from India --
including Tata Steel, Essar Steel, JSW Steel and Ispat
Industries -- have reportedly been looking overseas for iron
ore.

Sources told The Economic Times that the Bolivian government was
also negotiating with a steelmaker from Chinese.

However, observers think that the latest comments from the
Bolivian government could be pressure tactics, before it enters
into another round of negotiation with Jindal Steel, according
to The Economic Times.  A team lead by Jindal Steel vice-
chairperson and chief executive officer Vikrant Gujral will be
meeting with the Bolivian government officials.

Mr. Gujral commented to The Economic Times, "I am in Sao Paulo
(Brazil's capital), on the way to Bolivia for the meeting.
Things are fine, we will continue meeting with the government."

Mr. Gujral had told the Economic Times that Jindal Steel is
close to signing the contract and it should be done by the end
of January or in early February.

However, President Evo Morales passed a bill to the Parliament
to increase taxes on foreign mining firms, The Economic Times
says.

"Mining resources must benefit the country and not just
exporting companies," The Economic Times states, citing the
Bolivian leader.

                        *    *    *

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
===========


BANCO DO BRASIL: Eyes BRL2.70B Vehicle Financing Operations
-----------------------------------------------------------
Banco do Brasil will increase vehicle funding operations to
BRL2.70 billion in 2007, from BRL907 million in 2006, news
agency Agencia Estado reports.

Banco do Brasil's retail director Mauricio Fernandes told
Agencia Estado that Banco do Brasil expects up to 3% market
share in the auto loan segment in 2007.

Mr. Fernandez said that Banco do Brasil increased its market
share in the segment to 1.5% in 2006, compared with 0.4% in the
previous year, as it raised the number of financed vehicles to
76,500 from 27,000, Business News Americas states.

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

                        *    *    *

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


BANCO DO BRASIL: Reserves BRL2.20 Billion for Dairy Farmers
-----------------------------------------------------------
Banco do Brasil told Business News Americas that it has put
aside BRL2.20 billion for a line of credit for dairy farmers.

The credit line provides financing at 8.75% yearly for up to
five years, while previous loans to the dairy segment had two-
year terms, BNamericas relates, citing agribusiness division
manager Antonio Pontoglio.

Mr. Pontoglio told BNamericas that the loans Banco do Brasil
granted to dairy producers increased 20% to BRL1.60 billion in
2006, compared with 2005.  The bank sees a 37% boost in applied
loans for the segment this year.

Mr. Pontoglio commented to BNamericas that the dairy sector
evaded the recession in the agricultural industry over the past
two harvests due to:

          -- strong Brazilian real compared to the US dollar,
          -- high international commodity prices, and
          -- prolonged drought in southern Brazil.

BNamericas underscores that Banco do Brasil renegotiated about
BRL6.00 billion in debt from over 330,000 agricultural producers
last year, extending some loan payments for four years.

Banco do Brasil increased loan-loss provisions by 6.49% to
BRL8.20 billion by the end of the third quarter of 2006,
compared with the same time in the previous year, due to higher
rate of defaults in the rural loan portfolio, according to
BNamericas.  Agricultural sector loans represented 34.1% of
Banco do Brasil's loan book in September 2006.

Agribusiness director Jose Carlos Vaz told BNamericas that Banco
do Brasil will maintain loan-loss provisions in 2005's levels
for the time being despite signs of recovery in the agricultural
sector.  Banco do Brasil could lessen loan-loss provisions over
the course of the year.

BNamericas states that Banco do Brasil disclosed earlier in
January plans to raise lending for livestock operations by 15%
to BRL5.00 billion in 2007, compared with 2005.  The bank
expects total lending to the agribusinesses to increase 22% to
BRL33.0 billion for the 2006-07 harvest.

Banco do Brasil had BRL282 billion in total banking assets at
the end of the third quarter of 2006, BNamericas reports.

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

                        *    *    *

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


BANCO NACIONAL: Okays US$1.16B Loan for Petrobras' Ship Building
----------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social S.A.,
Brazil's state-owned bank, will help finance Petroleo Brasileiro
SA's shipbuilding project with a BRL2.47 billion loan (US$1.16
billion, EUR895 million), according to a statement from the
Brazilian President's press office.

The loan, the largest-ever financing provided by the state bank,
is aimed at reviving the country's naval industry, which was the
world's second largest in the 1970s, but dwindled a decade
later, Brazzil Magazine relates.

Transpetro, Petroleo Brasileiro's transportation unit, inked
Jan. 31 a US$1.2 billion (EUR925 million) pact for 10 new oil
tankers of the Suezmax type.

As previously reported, the first phase of the Transpetro Fleet
Modernization and Expansion Program, which foresees the
construction of 26 oil tankers at a total cost of US$2.8
billion, is expected to generate 22,000 new jobs.

The first 10 tankers will be built by the Atlantico Sul
consortium, comprised of: Andrade Gutierrez, Camargo Correa,
Queiroz Galvao and Aker Promar, the Associated Press says.

Brazzil Magazine says the new ships will be built at Rio Naval
Consortium, Maua Jurong Shipyard and Itajai Shipyard.

On top of Brazil's program to revive the shipbuilding industry,
Petroleo Brasileiro will also increase its fleet for its own
purposes. Of its 130 operating vessels, the company owns only 52
of them.  Being the country's largest oil company, Petroleo
Brasileiro's new ships will be utilized to deliver coastwise
shipping needs and meet long-distance transporation demands,
Brazzil Magazine says.

                  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 Banco Nacional

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

                        *    *    *

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

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

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


BANCO NACIONAL: Okays BRL156 Million in Loans to Bolognesi
----------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social said in a
statement that it ratified BRL156 million in loans to Brazilian
industrial group Bolognesi for the construction of two small-
scale hydro projects in Rio Grand do Sul.

Business News Americas relates that the two projects are:

          -- 28-megawatt Jararaca, and
          -- 26-megawatt Central da Ilha.

According to BNamericas, Jararaca and Central da Ilha are
included in Proinfa -- the federal government's renewable power
incentive program, through which Eletrobras is committed to
purchasing power from the plants for 20 years.  Commercial
operations have to begin by the end of next year.

Combined investment in the Jararaca and Central de Ilha is
estimated at BRL227 million.  Bolognesi will spend BRL71 million
from its own resources, Banco Nacional told BNamericas.

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

                        *    *    *

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

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

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


BRASIL TELECOM: Picks Widevine to Protect IPTV Deployment
---------------------------------------------------------
Brasil Telecom selected Widevine Technologies to protect its IP
video service.  Scheduled to launch in phases, the service
enables subscribers to securely view a variety of premium
Hollywood content and local programming on set top boxes, home
media gateways and, eventually, PCs.

Brasil Telecom is the first to offer IPTV in Brazil.  Brasil
Telecom's selection of Widevine from a short list of content
security vendors is, in part, due to its proven ability to
protect and enable the acquisition of premium content at Tier 1
operators worldwide.

"Our decision to deploy premium video content is critical to
delivering a compelling offer to our customers," said Luis
Henrique Castro Lima, Director of Mobile Operations and Business
Development of Brasil Telecom.  "Brasil Telecom requires a
content protection solution that meets current content owner
requirements and also supports future growth opportunities.
Specifically, we are looking ahead to the need for a solution to
secure and protect content across a wide range of existing IP
video devices."

"Over the last seven years, Widevine has changed the way the
industry thinks about content security including the importance
of protecting the digital hole -- the point when content has
been decrypted on a video consumer electronics device just prior
to on screen display.  This is critical for protecting premium
content delivered to consumer devices that are becoming
increasingly popular," said Brian Baker, President and CEO of
Widevine.  "Brasil Telecom's selection of Widevine further
proves Widevine's core content protection technologies and
future proof digital copy protection capabilities are the
preferred solution for Tier 1 operators globally.  We are
pleased to work with Brasil Telecom to deliver new revenue
generating business models and secure the future of its IP video
initiatives."

Headquartered in Brasilia, Brazil, Brasil Telecom Participacoes
SA -- http://www.brasiltelecom.com.br-- is a holding company
that conducts substantially all of its operations through its
wholly owned subsidiary, Brasil Telecom SA.  The fixed-line
telecommunications services offered to the company's customers
include local services, including all calls that originate and
terminate within a single local area in the region, as well as
installation, monthly subscription, measured services, public
telephones and supplemental local services; intraregional long-
distance services, which include intrastate and interstate
calls; interregional and international long-distance services;
network services, including interconnection and leasing; data
transmission services; wireless services, and other services.

                        *    *    *

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

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


CHEMTURA CORP: Completes Acquisition of Kaufman Holdings
--------------------------------------------------------
Chemtura Corp. has completed the acquisition of the stock of
Kaufman Holdings Corp. in an all-cash transaction.

Kaufman has approximately 300 employees and 2006 revenues in
excess of US$200 million.  The acquisition includes Kaufman's
two operating companies:

   * Hatco Corporation, a worldwide leading producer of polyol
     esters used for technically demanding synthetic lubricant
     applications, including aviation turbine oils and
     lubricants for HFC refrigeration compressors; and

   * Anderol Inc., a worldwide leader in high-performance,
     synthetic lubricants used in demanding aviation and
     industrial applications, such as compressors, bearings,
     gears and food-grade machinery.

"The acquisition of these companies aligns with our strategy to
add high-performing businesses to our portfolio," said Chemtura
Chairman and CEO Robert L. Wood.  "Both Hatco and Anderol are
world leaders in their respective markets."

"Our existing Petroleum Additives/Lubricants business is core to
our growth, and Hatco and Anderol fit in well with this
business.  There are related product offerings in key customer
areas, as well as the opportunity to strengthen alliances with
major suppliers.  There may be distribution synergies as well,
benefiting our global customers," Mr. Wood said.  "Chemtura will
add industry expertise, Six Sigma-based products and processes,
and new information technology systems that will benefit Kaufman
customers."

"The acquisition brings together complementary technology and
manufacturing experience and will result in our ability to offer
customers a broader portfolio of products, technology and
service," said Janet Mann, general manager and vice president of
Chemtura Performance Specialties, which includes the Petroleum
Additives/Lubricants business.  Hatco and Anderol will become
part of the Performance Specialties group of businesses.

"We see many opportunities for global expansion in two high-
growth markets: HFC refrigeration lubricants and high-
performance synthetic lubricants," Ms. Mann said.  "Growth in
HFC refrigeration lubricants is driven by the Montreal Protocol,
which provides for the accelerating adoption of environmentally
friendly refrigerants.  Growth also will be driven by the demand
for improved fuel and energy efficiency, as well as increased
equipment durability, all of which are enhanced by the use of
synthetic lubricants."

"Chemtura is pleased to welcome Hatco and Anderol employees into
the Chemtura organization and looks forward to the success we
will achieve together," said Mr. Wood.

Headquartered in Middlebury, Connecticut, Chemtura Corp. (NYSE:
CEM) -- http://www.chemtura.com/-- is a global supplier of
plastic additives, including flame-retardants.  The company also
manufactures and markets pool and spa products and seed
treatment and miticide in the agricultural market.  Chemtura
has more than 6,500 employees in research, manufacturing, sales
and administrative facilities in every major market of the
world.  In Latin America, Chemtura has facilities in Brazil and
Mexico.

                        *    *    *

As reported in the Troubled Company Reporter on Nov. 7, 2006,
Moody's Investors Service affirmed its Ba1 Corporate Family
Rating for Chemtura Corp., in connection with the implementation
of its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. chemicals and allied products sectors.
Additionally, Moody's held its Ba1 probability-of-default rating
on the company's US$500 Million 6.875% Guaranteed Senior Notes
due June 2016.


COMPANHIA SIDERURGICA: Discloses Share Buyback Program
------------------------------------------------------
Companhia Siderurgica Nacional said Monday in a filing with the
Sao Paulo's stock exchange, Bovespa, that it intends to
repurchase 923,628 shares until January 2008.  The company has
156 million shares in circulation.

The company made the announcement a day before it was beaten in
an auction by Tata Steel for control of Corus Group.

Meanwhile, Companhia Siderurgica told Reuters it intends to
continue with its internationalization plans despite
experiencing setbacks in its acquisition efforts.

"We are confident that the process of consolidation of the steel
sector is only in the beginning, which will bring better growth
opportunities to CSN in the future, for which we will always be
prepared," Chief Executive Officer Benjamin Steinbruck told
Reuters.

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

Companhia Siderurgica Nacional is considered one of the lowest-
cost steel producers in the world, which is a result of its
access to proprietary, high-quality iron ore (at the Casa de
Pedra mine); self-sufficiency in energy; streamlined facilities;
and logistics advantages.  This is in addition to the group's
strong market position in the fairly concentrated steel industry
in Brazil.  The group also operates in Portugal and the U.S.

                        *    *    *

Standard & Poor's Ratings Services affirmed its 'BB' local- and
foreign-currency corporate credit ratings on Brazil-steel maker
Companhia Sider£rgica Nacional and removed them from
CreditWatch, where they were placed on Nov. 17, 2006, with
negative implications.  The rating action was taken after the
completion of the Corus-acquisition process where Companhia
Siderurgica lost to Tata Steel of India.  S&P said the outlook
is stable.


COMPANHIA SIDERURGICA: S&P Affirms BB Corporate Credit Ratings
--------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB' local- and
foreign-currency corporate credit ratings on Brazil-steel maker
Companhia Sider£rgica Nacional or CSN and removed them from
CreditWatch, where they were placed on Nov. 17, 2006, with
negative implications.  The outlook is stable.

The CreditWatch resolution follows the completion of the auction
process for Corus Group plc (BB/Watch Negative/--), during which
India-based steel manufacturer Tata Steel Ltd. (BB/Watch Neg/--)
offered the highest bid of 608 pence per share, beating CSN's
competing offer of 603 pence per share.

"The stable outlook reflects our expectation that CSN will
preserve strong liquidity thanks to its robust cash generation
and despite its significant capital-expenditure program and
dividend distribution," said credit analyst Reginaldo Takara, of
the Corporate & Government Ratings group.  "We expect CSN's
credit measures to improve in the next quarters as the effects
of the BF#3 accident dissipate."

The outlook also assumes that CSN will be able to maintain sound
operating results through the steel cycle thanks to its
favorable cost position and access to steel export markets.

"Given the risks associated with CSN's significant capital
expenditure plans, we do not foresee upward potential for the
ratings in the medium term," continued Mr. Takara.  "The rating
could come under downward pressure if a continuing increase in
gross debt leads financial metrics to deteriorate permanently.
Acquisitions or further capital commitments that could
potentially hurt the company's current liquidity condition or
add financial leverage could equally lead to a negative revision
of the ratings or a negative outlook."


DURA AUTOMOTIVE: Court Okays Chanin Capital as Panel's Advisor
--------------------------------------------------------------
The Honorable Kevin J. Carey of the U.S. Bankruptcy Court for
the District of Delaware authorized the Official Committee of
Unsecured Creditors to retain Chanin Capital Partners as its
financial advisors, nunc pro tunc Nov. 10, 2006, in Dura
Automotive Systems Inc. and its debtor-affiliates' chapter 11
cases.

As reported in the Troubled Company Reporter on Jan. 9, 2007,
the Committee needs Chanin Capital's assistance in collecting
and analyzing financial and other information in relation to the
Debtors' Chapter 11 cases.

The Committee expects the firm to:

   (a) analyze and evaluate the liquidity position, assets and
       liabilities, and financial condition of the Debtors;

   (b) review and analyze the Debtors' financial and operating
       statement;

   (c) review and analyze the Company's business and financial
       projections;

   (d) evaluate the Company's debt capacity in light of its
       projected cash flows;

   (e) assist in the determination of an appropriate capital
       structure for the Company;

   (f) determine a theoretical range of values for the Company
       on a going concern basis;

   (g) assist the Committee in identifying and evaluating
       candidates for the potential acquisition of certain
       assets of the Company;

   (h) analyze proposed sales of assets of the Debtors, the
       terms and options and related issues, including available
       strategic alternatives;

   (i) review, analyze and monitor the Debtor-In-Possession
       financing and other financing alternatives;

   (j) advise the Committee on tactics and strategies for
       negotiating with the Company and other purported
       stakeholders;

   (k) determine a theoretical range of values for any
       securities to be issued or distributed in connection with
       the Chapter 11 case, including without limitation any
       securities to be distributed under a plan;

   (l) advise and assist the Committee in the review and
       analysis of the Debtors' business plan;

   (m) advise and assist the Committee in the review of all
       plans;

   (n) assist with a review of the Debtors' short-term cash
       management procedures and monitoring of cash flow;

   (o) assist with a review of the Debtors' employee benefit
       programs;

   (p) assist and advise the Committee with respect to the
       Debtors' management of their supply chain, including
       critical and foreign vendors;

   (q) assist with a review of the Debtors' performance of
       cost/benefit evaluations with respect to the affirmation
       or rejection of various executory contracts involving
       vendors and customers;

   (r) assist in the evaluation of the Debtors' operations and
       identification of areas of potential cost savings,
       including overhead and operating expense reductions and
       efficiency improvements;

   (s) assist in the review and preparation of information and
       analysis necessary for the confirmation of a plan;

   (t) assist in the review of potential claims levels and the
       Debtors' reconciliation process;

   (u) assist with various tax matters;

   (v) provide testimony in any proceeding before the Court; and

   (w) provide the Committee with other appropriate general
       restructuring advice.

Chanin Capital will be paid US$150,000 per month and will be
reimbursed for expenses incurred in connection with the
engagement.  A US$1,500,000 transaction fee will also be paid to
the firm on the effective date of a plan of reorganization.

Brent Williams, managing director at Chanin Capital, disclosed
that the firm represents certain Committee members or parties-
in-interest in the Debtors' Chapter 11 cases.  Chanin Capital,
however, has not identified any material relationships with any
party that would otherwise affect its judgment or ability to
perform services for the Committee.

Chanin Capital assured the Court that it has not and will not
provide any professional services to the Debtors, any of the
creditors, other parties-in-interest with regard to any matter
related to the Debtors' Chapter 11 cases.

Mr. Williams attestd that Chanin Capital is a "disinterested
person," as that term is defined in Section 101(14) of the
Bankruptcy Code.

               About DURA Automotive Systems

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

The Debtors filed for chapter 11 petition on Oct. 30, 2006
(Bankr. District of Delaware Case No. 06-11202).  Richard M.
Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq.,
and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead
counsel for the Debtors' bankruptcy proceedings.  Mark D.
Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M.
Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are
the Debtors' co-counsel.  Baker & McKenzie acts as the Debtors'
special counsel.  Togut, Segal & Segal LLP is the Debtors'
conflicts counsel.  Miller Buckfire & Co., LLC is the Debtors'
investment banker.  Glass & Associates Inc., gives financial
advice to the Debtor.  Kurtzman Carson Consultants LLC handles
the notice, claims and balloting for the Debtors and Brunswick
Group LLC acts as their Corporate Communications Consultants for
the Debtors.  As of July 2, 2006, the Debtor had
US$1,993,178,000 in total assets and US$1,730,758,000 in total
liabilities.  (Dura Automotive Bankruptcy News, Issue No. 9;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


DURA AUTOMOTIVE: Judge Carey OKs Kramer Levin as Panel's Counsel
----------------------------------------------------------------
The Honorable Kevin J. Carey of the U.S. Bankruptcy Court for
the District of Delaware authorized the Official Committee of
Unsecured Creditors in Dura Automotive Systems Inc. and its
debtor-affiliates' chapter 11 cases to retain Kramer Levin
Naftalis & Frankel LLP as its counsel, effective as of
Nov. 7, 2006.

As reported in the Troubled Company Reporter on Jan. 9, 2007, in
addition to acting as primary spokesman for the Committee,
Kramer Framer Levin's services will include, without limitation,
assisting, advising and representing the Committee with respect
to these matters:

    a. The administration of these cases and the exercise of
       oversight with respect to the Debtors' affairs including
       all issues in connection with the Debtors, the Committee
       or the Chapter 11 cases;

    b. The preparation on behalf of the Committee of necessary
       applications, motions, memoranda, orders, reports and
       other legal papers;

    c. Appearances in Court and at statutory meetings of
       creditors to represent the interests of the Committee;

    d. The negotiation, formulation, drafting and confirmation
       of a plan or plans of reorganization and matters related
       thereto;

    e. The investigation, if any, as the Committee may desire
       concerning, among other things, the assets, liabilities,
       financial condition, sale of any of the Debtors'
       businesses, and operating issues concerning the Debtors
       that may be relevant to the Chapter 11 Cases;

    f. Communications with the Committee's constituents and
       others at the direction of the Committee in furtherance
       of its responsibilities, including, but not limited to,
       communications required under Section 1102 of the
       Bankruptcy Code; and

    g. The performance of all of the Committee's duties and
       powers under the Bankruptcy Code and the Bankruptcy Rules
       and the performance of  other services as are in the
       interests of those represented by the Committee.

Kramer Levin will be paid on an hourly basis based on its
customary rates:

          Professional                    Hourly Rate
          ------------                    -----------
          Partners                     US$500 to US$795
          Counsel                      US$505 to US$855
          Associates                   US$295 to US$545
          Legal Assistants             US$190 to US$220

Kramer Levin will also seek reimbursement of out-of-pocket
expenses.  The firm regularly charges its clients for the
expenses and disbursements incurred in connection with the
client's case, including, inter alia, word processing,
secretarial time, telecommunications, photocopying, postage and
package delivery charges, court fees, transcript costs, travel
expenses, expenses for "working meals" and computer-aided
research.

Thomas Moers Mayer, Esq., a member at Kramer Levin, assured the
Court that:

   (i) the firm is a "disinterested person" within the meaning
       of Section 101(14) of the Bankruptcy Code;

  (ii) neither Kramer Levin nor its professionals have any
       connection with the Debtors, the creditors or any other
       party-in-interest; and

(iii) Kramer Levin does not hold or represent any interest
       adverse to the Committee in the matters for which it is
       to be retained.

               About DURA Automotive Systems

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

The Debtors filed for chapter 11 petition on Oct. 30, 2006
(Bankr. District of Delaware Case No. 06-11202).  Richard M.
Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq.,
and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead
counsel for the Debtors' bankruptcy proceedings.  Mark D.
Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M.
Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are
the Debtors' co-counsel.  Baker & McKenzie acts as the Debtors'
special counsel.  Togut, Segal & Segal LLP is the Debtors'
conflicts counsel.  Miller Buckfire & Co., LLC is the Debtors'
investment banker.  Glass & Associates Inc., gives financial
advice to the Debtor.  Kurtzman Carson Consultants LLC handles
the notice, claims and balloting for the Debtors and Brunswick
Group LLC acts as their Corporate Communications Consultants for
the Debtors.  As of July 2, 2006, the Debtor had
US$1,993,178,000 in total assets and US$1,730,758,000 in total
liabilities.  (Dura Automotive Bankruptcy News, Issue No. 9;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


FIDELITY NATIONAL: EMC Inks Tax Processing Pact with FNTS
---------------------------------------------------------
Fidelity National Information Services, Inc. aka FIS, disclosed
that EMC Mortgage Corporation or EMC, a wholly owned subsidiary
of The Bear Stearns Companies Inc., has signed a multiyear
contract to outsource its tax processing to Fidelity National
Tax Services, Inc. or FNTS, an FIS-affiliated service entity.

FIS provides a wide range of real estate tax services and data
to mortgage lenders and servicers nationwide, through in-source
and outsource solutions.  Specifically, FIS' automated escrow
reporting and payment system enables all escrowed taxes to be
reported and paid on a timely basis without penalty or loss of
discount.  Additionally, FIS' comprehensive delinquency
management program helps mitigate the loss of properties to tax
sale and accommodates the diverse tax requirements of multiple
geographic locations.

By leveraging these services in an outsourced environment, EMC
will be able to provide improved customer support and realize
enhanced efficiency, increased capacity and mitigated risk.

"From a servicing standpoint, the contract with Fidelity
National Tax Services represents an easy transition and creates
a win-win situation for EMC and FIS," said Bill Glasgow, Jr.,
executive vice president of Loan Administration for EMC.  "EMC
customers will benefit from FNTS' comprehensive service, and EMC
can be confident that its tax processing will be completed in an
accurate and timely manner."

"Fidelity National Tax Services' existing client relationships
with various EMC vendors, our newly enhanced technologies and
recent integration initiatives will enable EMC to further
streamline its business processes," said Eric Swenson, president
of FIS' Mortgage Information Services division.  "This new
business relationship is intended to create an overall better
borrower experience."

                     About EMC Mortgage

EMC Mortgage Corp., headquartered in Lewisville, Texas, within
the Dallas-Fort Worth metroplex, is a mortgage servicing company
specializing in the acquisition, securitization, servicing and
disposition of residential loans.

EMC is a wholly owned subsidiary of The Bear Stearns Companies
Inc.  Founded in 1923, The Bear Stearns Companies Inc. (NYSE:
BSC) is the parent company of Bear, Stearns & Co. Inc., a
leading investment banking and securities trading and brokerage
firm.  With approximately US$66.7 billion in total capital, Bear
Stearns serves governments, corporations, institutions and
individuals worldwide.  Through Bear, Stearns Securities Corp.,
it offers financing, securities lending, clearing and technology
solutions.

       About Fidelity National Information Services

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

                        *    *    *

As reported in the Troubled Company Reporter on Jan. 24, 2007,
Fitch Ratings assigned a senior unsecured rating of 'BB+' for
Fidelity National Information Services' new US$3 billion senior
unsecured credit facilities.  The facilities consist of a US$2.1
billion term loan and a US$900 million revolving credit
facility.  The company used the proceeds to refinance existing
debt.  Fidelity's Issuer Default Rating remains at 'BB+'.  Fitch
said the rating outlook is stable.


NOVELIS INC: Supplies Aluminum Sheet for Hood of New GMC Acadia
---------------------------------------------------------------
General Motors has selected Novelis Inc. to supply aluminum
sheet for the hood of the all-new 2007 GMC Acadia, the brand's
first crossover SUV.

The aluminum sheet for the Acadia will be supplied from Novelis
rolling mills in Oswego, N.Y., and Kingston, Ont.

"The automotive market is a key growth segment for Novelis,"
said Buddy Stemple, Vice President and General Manager of
Novelis North America's Specialty Products Group.  "The award of
this business signifies the growing demand for light-weight
solutions and further demonstrates our ability to deliver
innovative products and services to the market."

The Acadia is now available in North American showrooms.  Built
on GM's new unibody Lambda platform, the new crossover vehicle
delivers car-like handling and available seating for up to eight
adults.

Based in Atlanta, Georgia, Novelis, Inc., (NYSE: NVL) (TSX: NVL)
-- http://www.novelis.com/-- provides customers with a regional
supply of technologically sophisticated rolled aluminum products
throughout Asia, Europe, North America, and South America.  The
company operates in 11 countries and has around 13,000
employees.  Through its advanced production capabilities, the
company supplies aluminum sheet and foil to the automotive and
transportation, beverage and food packaging, construction and
industrial, and printing markets.

Novelis South America operates two rolling plants and primary
production facilities in Brazil.  The company's Pindamonhangaba
rolling and recycling facility in Brazil is the largest aluminum
rolling and recycling facility in South America and the only one
capable of producing can body and end stock.  The plant recycles
primarily used beverage cans, and is engaged in tolling recycled
metal for its customers.

                        *    *    *

As reported in the Troubled Company Reporter on Sept. 7, 2006,
Moody's Investors Service downgraded Novelis Inc.'s corporate
family rating to B1 from Ba3, the bank revolver rating to Ba3
from Ba2, the bank term loan rating to Ba3 from Ba2, and senior
unsecured notes to B2 from B1.  Moody's also downgraded Novelis
Corp.'s bank term loan rating to Ba3 from Ba2.


PETROLEO BRASILEIRO: Completes Nova Piratininga Plant Expansion
---------------------------------------------------------------
Brazilian state oil firm Petroleo Brasileiro SA said in a
statement that it has concluded the expansion of its gas-fired
Nova Piratininga power plant.

According to Petroleo Brasileiro's statement, the expansion at
Nova Piratininga increases the plant's capacity to 560 megawatts
from 370 megawatts.  The plant is in Sao Paulo.  It launched
commercial operations in early 2005.

Business News Americas relates that the power plant's name was
changed to Fernand Gasparian, in honor of a local journalist who
fought against the 1964-85 military dictatorship.

According to BNamericas, Petroleo Brasileiro has disclosed plans
to invest US$191 million in Sao Paulo power plants from 2007 to
2011.  Investment would include:

          -- conversion of gas-fired power plants to operate
             with other fuels, and

          -- construction of the 160-megawatt Cubatao gas-fired
             plant.

Petroleo Brasileiro will also rename its 928-megawatt gas-fired
Maca power plant in Rio de Janeiro to UTE Mario Lago, BNamericas
states.

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

Petrobras has operations in China, India, Japan, and Singapore.

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

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

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

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


PETROLEO BRASILEIRO: Gets US$1.16-Bil. Loan for Ship Building
-------------------------------------------------------------
Transpetro, Petroleo Brasileiro SA's transportation unit, inked
Jan. 31 a US$1.2 billion (EUR925 million) pact for 10 new oil
tankers of the Suezmax type.

As previously reported, the first phase of the Transpetro Fleet
Modernization and Expansion Program, which foresees the
construction of 26 oil tankers at a total cost of US$2.8
billion, is expected to generate 22,000 new jobs.

The first 10 tankers will be built by the Atlantico Sul
consortium, comprised of: Andrade Gutierrez, Camargo Correa,
Queiroz Galvao and Aker Promar, the Associated Press says.

Brazzil Magazine says the new ships will be built at Rio Naval
Consortium, Maua Jurong Shipyard and Itajai Shipyard.

Banco Nacional de Desenvolvimento Economico e Social S.A.,
Brazil's state-owned bank, will help finance the project with a
BRL2.47 billion loan (US$1.16 billion, EUR895 million),
according to a statement from the Brazilian President's press
office.  The loan, the largest-ever financing provided by the
state bank, is aimed at reviving the country's naval industry,
which was the world's second largest in the 1970s, but dwindled
in a decade later, Brazzil Magazine relates.

On top of Brazil's program to revive the shipbuilding industry,
Petroleo Brasileiro will also increase its fleet for its own
purposes. Of its 130 operating vessels, the company owns only 52
of them.  Being the country's largest oil company, Petroleo
Brasileiro's new ships will be utilized to deliver coastwise
shipping needs and meet long-distance transporation demands,
Brazzil Magazine says.

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

Petrobras has operations in China, India, Japan, and Singapore.

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

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

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

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


TELEMIG CELULAR: Parent Hires Merrill Lynch to Facilitate Sale
--------------------------------------------------------------
Mem Celular Participacoes SA, the parent company of Telemig
Celular and Amazonia Celular, disclosed in a filing with
Bovespa, the retention of Merrill Lynch to study investment
alternatives for its subsidiaries, including their possible
sale.

According to Business News Americas, talks circulated last month
that Mem Celular and Citigroup might choose Merrill Lynch to
coordinate the telcos' sale.

Rumors in the industry, BNamericas says, names Vivo and Claro as
the likely purchasers of the Telemig and Amazonia.  Vivo is a
joint venture of Telefonica and Portugal Telecom.  Claro is
America Movil's Brazilian unit.

Headquartered in Belem, Brazil, Amazonia Celular is the leading
provider of mobile communications services in a region covering
the states of Maranhao, Para, Amazonas, Amapa and Roraima in the
northern region of Brazil.  As of Sept. 30, 2006, Amazonia had
1.27 million subscribers, with a market share of 24% in its
concession area.

Headquartered in Belo Horizonte, Brazil, Telemig Celular is the
leading provider of mobile communications services in the state
of Minas Gerais, Brazil.  As of Sept. 30, 2006, Telemig had 3.42
million subscribers, with a market share of 33% in its
concession area.

As reported in the Troubled Company Reporter-Latin America on
Jan. 4, 2007, Moody's Investors Service placed under review for
possible downgrade the B2 foreign currency rating of the US$120
million senior unsecured notes units issued by Telemig Celular
SA and Amazonia Celular SA.

Moody's rating action reflected primarily Amazonia's overall
deteriorated credit metrics as a result of weakened operating
margins and increased competitive pressures, as well as Moody's
concerns regarding the company's tightened liquidity position
due to a substantial concentration of debt maturity in the short
term.


* BRAZIL: Sells US$500 Million Dollar Bonds Due 2037
----------------------------------------------------
The Brazilian government has sold US$500 million dollar-
denominated bonds due 2037, Bloomberg News reports.

Analysts say that the government is taking advantage of the
country's lowest borrowing costs.

According to the same report, the bonds have a yield of 6.635%
or 1.73 percentage points over the same U.S. Treasuries.  The
yield fell to 6.52% on Jan. 3 versus the 8.1% in May 2006.

"This is a very favorable moment for Brazil to issue bonds,"
Luis Fernando Lopes, a partner at Patria Banco de Negocios, who
helps manage US$950 million in stocks and bonds, told Bloomberg.
"Brazil needs to take advantage of this opportunity as economic
fundaments are very positive."

According to JPMorgan Chase & Co., the average yield spread on
the dollar-denominated bonds over U.S. Treasuries dropped to
1.84 points on Jan. 19, Bloomberg relates.

The Brazilian government initially sold US$1 billion of the 7-
1/8% bonds on January 2006, with a yield of 7.56% or 2.95
percentage points over the Treasuries, Bloomberg says.  The last
offer was made in March, which sold US4500 million with a yield
of 6.83% or 2.04 percentage points more than the Treasuries.

"It's been a long time since the market has seen such a long
maturity from Brazil," Henry Stipp, who helps manage US$5
billion in emerging market assets for Threadneedle Asset
Management, told Bloomberg in a phone interview from London.

In August, Brazil offered to exchange old bonds maturing from
2020 to 2030 for 7.125% Global Bonds due 2037.

Raphael Kassin, who manages US$4 billion of emerging-market
fixed income at ABN Asset Management Services in London, told
Bloomberg that a demand for emerging market bonds have grown and
investors have become very interested high interest rates.

                        *    *    *

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

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


* BRAZIL: IDB Grants US$7.15MM Loan to Improve Public Policies
--------------------------------------------------------------
The Brazilian Instituto de Pesquisa Economica Aplicada --
Institute for Applied Economic Research -- will receive a
US$7,150,000 technical cooperation loan from the Inter-American
Development Bank to improve its capacity to formulate, monitor
and evaluate public policies and to study the country's
development challenges to recommend alternative solutions.

The program approved by the Board of Executive Directors will
support the management and performance of IPEA.  It will
produce, systematize and disseminate knowledge by developing key
research projects that will contribute toward the improvement of
prototypes and new processes to meet specific requirements for
public policy.  It will also strengthen cooperation with
national and international researchers and institutions by
implementing exchanges of visiting specialists, participation in
international congresses and supporting a national forum.
Communication and dissemination of information to the general
public will be an important objective.

"This operation will invest in research and development to
support the search for new or refined knowledge and ideas," said
Juan Luna-Kelser, the Project Team Leader.  "It will also
support the application of such knowledge and ideas for the
development of new and improved public policy products, with the
expectation of improving Brazil's productive capacity and
accelerating social development."

"IPEA's research production is extremely valuable to the IDB
since it provides key inputs for the preparation of the Bank's
country lending strategy and direction, as well as country and
sector studies," added Mr. Luna-Kelser.

IPEA is a public planning and research foundation under the
Ministry of Planning, Budget and Management.  During its 40-year
history, IPEA has been responsible for the preparation of
economic and social studies that have served as the basis for
the government's formulation of economic policy and economic
development plans, with a medium- and long-term strategic
vision. It produces discussion papers, studies and socioeconomic
research.

The loan is for a 20-year period, with a five-year grace period,
at a variable interest rate based on Libor.

Local counterpart funds for the project will total US$1,650,000.


                        *    *    *

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

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




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


ADORI HOLDINGS: Proofs of Claim Filing Deadline Is on Feb. 8
------------------------------------------------------------
Adori Holdings Ltd.'s creditors are required to submit proofs of
claim by Feb. 8, 2007, to the company's liquidator:

          Buchanan Ltd.
          P.O. Box 1170
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Feb. 8 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Adori Holdings' shareholders agreed on Dec. 27, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.

Parties-in-interest may contact:

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


ADORI HOLDINGS: Shareholders to Gather for Feb. 8 Final Meeting
---------------------------------------------------------------
Adori Holdings Ltd.'s final shareholders meeting will be on
Feb. 8, 2007, at:

          Cititrust (Cayman) Ltd.
          CIBC Financial Centre, George Town
          Grand Cayman, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

           Buchanan Ltd.
           P.O. Box 1170
           Grand Cayman, Cayman Islands


ADROIT PRIVATE: Final General Meeting Is Set for Feb. 8
-------------------------------------------------------
Adroit Private equity (Offshore) Ltd.'s final shareholders
meeting will be at 10:00 a.m. on Feb. 8, 2007, at:

          Trident Trust Company Ltd.
          Fourth Floor, One Capital Place
          P.O. Box 847, 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:

           Kimbert Solomon
           Trident Trust Company Ltd.
           Fourth Floor, One Capital Place
           P.O. Box 847, George Town
           Grand Cayman, Cayman Islands
           Tel: (345) 949 0880
           Fax: (345) 949 0881


ANOM LTD: Deadline for Proofs of Claim Filing Is on Feb. 8
----------------------------------------------------------
Anom Ltd.'s creditors are required to submit proofs of claim by
Feb. 8, 2007, to the company's liquidators:

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

Creditors who are not able to comply with the Feb. 8 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Anom Ltd.'s shareholders agreed on Dec. 20, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.

Parties-in-interest may contact:

          Michael C Fitzgerald
          P.O. Box 707, George Town
          Grand Cayman, Cayman Islands
          Tel: 945-4777
          Fax: 945-4799


ARARA HOLDINGS: Calls Shareholders for Feb. 8 Final Meeting
-----------------------------------------------------------
Arara Holdings Ltd.'s final shareholders meeting will be at
10:00 a.m. on Feb. 8, 2007, at:

          Tumblers Barn, Fairoak Lane
          Oxshott, Surrey KT22 OTY, United Kingdom

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:

           Karen De Segundo
           Tumblers Barn, Fairoak lane
           Oxshott, Surrey KT22 OTY
           United Kingdom
           Tel: +44 1372 843-079
           Fax: +44 1372 844-169
           E-mail: Karen@desegundo.com


ATTICA ASSET: Proofs of Claim Filing Deadline Is on Feb. 8
-----------------------------------------------------------
Attica Asset Management (Cayman) Ltd.'s creditors are required
to submit proofs of claim by Feb. 8, 2007, to the company's
liquidators:

          Mike Hughes
          Jan Neveril
          Maples Finance Ltd.
          P.O. Box 1093, George Town
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Feb. 8 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Attica Asset's shareholders agreed on Nov. 16, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


BAREP SYSTEMATIC: Last Day to File Proofs of Claim Is on Feb. 8
---------------------------------------------------------------
Barep Systematic Commodity Arbitrage Fund's creditors are
required to submit proofs of claim by Feb. 8, 2007, to the
company's liquidators:

          Q&H Nominees Ltd.
          Third Floor, Harbour Centre
          P.O. Box 1348, Grand Cayman
          KY1-1108, Cayman Islands

Creditors who are not able to comply with the Feb. 8 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Barep Systematic's shareholders agreed on Dec. 12, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.

Parties-in-interest may contact:

          Quin & Hampson
          P.O. Box 1348, Grand Cayman
          Cayman Islands
          Tel: +1 345 949 4123
          Fax: +1 345 949 4647


CAMARILLA INVESTMENTS: Proofs of Claim Filing Is Until Feb. 8
-------------------------------------------------------------
Camarilla Investments Ltd.'s creditors are required to submit
proofs of claim by Feb. 8, 2007, to the company's liquidators:

          C.I. Directors Ltd.
          P.O. Box 1110, George Town
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Feb. 8 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Camarilla Investments Ltd.'s shareholders agreed on
Dec. 21, 2006, for the company's voluntary liquidation under
Section 135 of the Companies Law (2004 Revision) of the Cayman
Islands.


CAMEL INVESTMENTS: Proofs of Claim Must be Filed by Feb. 8
----------------------------------------------------------
Camel Investments International, Ltd.'s creditors are required
to submit proofs of claim by Feb. 8, 2007, to the company's
liquidators:

          Abdullah Almarzouq
          Messrs. Maples and Calder
          P.O. Box 309, George Town
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Feb. 8 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Camel Investments' shareholders agreed on Dec. 21, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


DRYDEN III: Last Day to File Proofs of Claim Is on Feb. 8
---------------------------------------------------------
Dryden III-Leveraged Loan CDO 2002's creditors are required to
submit proofs of claim by Feb. 8, 2007, to the company's
liquidators:

          Guy Major
          Richard Gordon
          Maples Finance Ltd.
          P.O. Box 1093, George Town
          Grand Cayman, Cayman Islands.

Creditors who are not able to comply with the Feb. 8 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Dryden III-Leveraged's shareholders agreed on Dec. 19, 2006, for
the company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


DRYDEN LEVERAGED: Deadline for Proofs of Claim Filing Is Feb. 8
---------------------------------------------------------------
Dryden Leveraged Loan CDO 2002-II's creditors are required to
submit proofs of claim by Feb. 8, 2007, to the company's
liquidators:

          Guy Major
          Richard Gordon
          Maples Finance Ltd.
          P.O. Box 1093, George Town
          Grand Cayman, Cayman Islands.

Creditors who are not able to comply with the Feb. 8 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Dryden Leveraged's shareholders agreed on Dec. 19, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


HEJAZ INVESTMENT: Proofs of Claim Must be Filed by Feb. 8
---------------------------------------------------------
Hejaz Investment International, Ltd.'s creditors are required to
submit proofs of claim by Feb. 8, 2007, to the company's
liquidators:

          Abdullah Almarzouq
          Messrs. Maples and Calder
          P.O. Box 309, George Town
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Feb. 8 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Hejaz Investments' shareholders agreed on Dec. 21, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


JME OFFSHORE: Creditors Must File Proofs of Claim by Feb. 8
-----------------------------------------------------------
JME Offshore Opportunity Fund II Ltd.'s creditors are required
to submit proofs of claim by Feb. 8, 2007, to the company's
liquidators:

          Stuart K. Sybersma
          Ian A.N. Wight
          Deloitte, Cayman Islands

Creditors who are not able to comply with the Feb. 8 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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

Parties-in-interest may contact:

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


LUBICE FINANCE: Claims Filing Deadline Is Set for Feb. 8
--------------------------------------------------------
Lubice Finance Inc.'s creditors are required to submit proofs of
claim by Feb. 8, 2007, to the company's liquidators:

          Joshua Grant
          Richard Gordon
          Maples Finance Ltd.
          P.O. Box 1093, George Town
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Feb. 8 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Lubice Finance's shareholders agreed on Dec. 20, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


LUBICE FINANCE: Shareholders to Gather for Feb. 8 Final Meeting
---------------------------------------------------------------
Lubice Finance Inc.'s final shareholders meeting will be on
Feb. 8, 2007, at:

          Maples Finance Ltd.
          Queensgate House, George Town
          Grand Cayman, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

           Joshua Grant
           Richard Gordon
           Maples Finance Ltd.
           P.O. Box 1093,George Town
           Grand Cayman, Cayman Islands


MINCS-MAGNUM: Filing of Proofs of Claim Is Until Feb. 8
-------------------------------------------------------
Mincs-Magnum, Ltd.'s creditors are required to submit proofs of
claim by Feb. 8, 2007, to the company's liquidators:

          Phillip Hinds
          Richard Gordon
          Maples Finance Ltd.
          P.O. Box 1093, George Town
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Feb. 8 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Mincs-Magnum's shareholders agreed on Dec. 20, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


SAPIC 98: Shareholders to Convene for Feb. 8 Final Meeting
----------------------------------------------------------
Sapic 98 Reference Fund (3) Ltd.'s final shareholders meeting
will be at 10:00 a.m. on Feb. 8, 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:

           Russell Smith
           Attn: Jodi Smith
           P.O. Box 225, George Town
           Grand Cayman, Cayman Islands


SEQUILS-MAGNUM: Creditors Must Submit Proofs of Claim by Feb. 8
---------------------------------------------------------------
Sequils-Magnum, Ltd.'s creditors are required to submit proofs
of claim by Feb. 8, 2007, to the company's liquidators:

          Phillip Hinds
          Richard Gordon
          Maples Finance Ltd.
          P.O. Box 1093, George Town
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Feb. 8 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Sequils-Magnum's shareholders agreed on Dec. 20, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


SITKA INVESTMENTS: Proofs of Claim Must be Filed by Feb. 8
----------------------------------------------------------
Sitka Investments Ltd.'s creditors are required to submit proofs
of claim by Feb. 8, 2007, to the company's liquidators:

          Stuart K. Sybersma
          Ian A.N. Wight
          Deloitte, Cayman Islands

Creditors who are not able to comply with the Feb. 8 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Sitka Investments' shareholders agreed on Dec. 19, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.

Parties-in-interest may contact:

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


SOFOS CAPITAL: Final Shareholders Meeting Is Set for Feb. 8
-----------------------------------------------------------
Sofos Capital Fund's final shareholders meeting will be at 10:00
a.m. on Feb. 8, 2007, at:

          Trident Trust Company Ltd.
          Fourth Floor, One Capital Place
          P.O. Box 847, 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:

           Kimbert Solomon
           Trident Trust Company Ltd.
           Fourth Floor, One Capital Place
           P.O. Box 847, George Town
           Grand Cayman, Cayman Islands
           Tel: (345) 949 0880
           Fax: (345) 949 0881


STOCKLORD INVESTMENTS: Proofs of Claim Filing Is Until Feb. 8
-------------------------------------------------------------
Stocklord Investments Ltd.'s creditors are required to submit
proofs of claim by Feb. 8, 2007, to the company's liquidators:

          Abdullah Almarzouq
          Messrs. Maples and Calder
          P.O. Box 309, George Town
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Feb. 8 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Stocklord Investments' shareholders agreed on Dec. 27, 2006, for
the company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


VHC EUROPEAN: Last Day for Proofs of Claim Filing Is on Feb. 8
--------------------------------------------------------------
VHC European Restructuring Fund Ltd.'s creditors are required to
submit proofs of claim by Feb. 8, 2007, to the company's
liquidators:

          Stuart K. Sybersma
          Ian A N Wight
          Deloitte, Cayman Islands

Creditors who are not able to comply with the Feb. 8 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

VHC European's shareholders agreed on Dec. 18, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.

Parties-in-interest may contact:

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


VHC EUROPEAN EVENT: Proofs of Claim Filing Deadline Is Feb. 8
-------------------------------------------------------------
VHC European Event Driven Fund Ltd.'s creditors are required to
submit proofs of claim by Feb. 8, 2007, to the company's
liquidators:

          Stuart K. Sybersma
          Ian A N Wight
          Deloitte, Cayman Islands

Creditors who are not able to comply with the Feb. 8 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

VHC European Event's shareholders agreed on Dec. 18, 2006, for
the company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.

Parties-in-interest may contact:

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


VHC MASTER: Deadline for Proofs of Claim Filing Is on Feb. 8
------------------------------------------------------------
VHC Master Fund Ltd.'s creditors are required to submit proofs
of claim by Feb. 8, 2007, to the company's liquidators:

          Stuart K Sybersma
          Ian A N Wight
          Deloitte, Cayman Islands

Creditors who are not able to comply with the Feb. 8 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

VHC Master's shareholders agreed on Dec. 18, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.

Parties-in-interest may contact:

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


VHC RESTRUCTURING: Last Day to File Proofs of Claim Is on Feb. 8
----------------------------------------------------------------
VHC Restructuring Master Fund Ltd.'s creditors are required to
submit proofs of claim by Feb. 8, 2007, to the company's
liquidators:

          Stuart K. Sybersma
          Ian A N Wight
          Deloitte, Cayman Islands

Creditors who are not able to comply with the Feb. 8 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

VHC Restructuring's shareholders agreed on Dec. 18, 2006, for
the company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.

Parties-in-interest may contact:

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




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


ARMOR HOLDINGS: Posts US$38 Million Net Income in Fourth Quarter
----------------------------------------------------------------
Armor Holdings Inc. reported financial results for the fourth
quarter and fiscal year ended Dec. 31, 2006.

For the fourth quarter ended Dec. 31, 2006, the company reported
revenue of US$801 million, an increase of 77%, compared to
US$453 million in the fourth quarter last year.  Net income for
the fourth quarter was US$38 million.  Earnings before interest,
taxes, depreciation and amortization for the fourth quarter
increased by 23% to US$82 million versus US$67 million in the
year-ago quarter.

Excluding the impact of the Stewart & Stevenson acquisition and
a number of other operating and non-operating items in both
periods, pro forma net income was US$38 million for the three-
months ended Dec. 31, 2006, compared to US$39 million for the
prior year period.

Robert R. Schiller, Armor Holdings' President and Chief
Operating Officer of commented, "We are pleased to have finished
fiscal 2006, a truly transformational year, with a strong fourth
quarter performance.  We believe our OEM vehicle assembly
operations, vehicle armor and safety systems business,
individual soldier equipment, law-enforcement products and
commercial vehicle armoring businesses are all positioned to
continue to show growth and improvements in profitability as we
move forward.  In the year ahead, we intend to make substantial
investments in our capability for design, development and
production in each of our major product areas."

Mr. Schiller continued, "In addition to the ongoing strong
demand for the FMTV and Up-Armored HMMWVs, we are pleased with
the many opportunities that are emerging to potentially provide
other types of vehicles and to support other organizations with
armor components.  At the same time, for the long-term, we
continue to be excited by our team's role to develop the next
generation of light tactical vehicle, JLTV.  We believe that our
broad capabilities for all manner of armoring and assembly
operations position us well to serve the diverse needs for light
and medium tactical wheeled vehicles."

Internal revenue growth, which includes increases or decreases
in acquired companies' current quarter revenues since the date
of acquisition versus the comparable prior year period, was 31%,
including 0.5% impact for foreign currency movements.  Internal
revenue growth/(declined) by segment, including foreign currency
movements, was 39% for the Aerospace & Defense Group, 8% for the
Products Group and (3%) for the Mobile Security Division from
the same period last year.

   -- The Aerospace & Defense Group internal revenue growth was
      primarily due to higher volumes of HMMWV related business
      partially offset by a reduction in medium and heavy truck
      kit business.

   -- The Products Group internal revenue growth was primarily
      due to a large international shipment within our hard
      armor business and strong sales of law enforcement duty
      gear.

   -- The Mobile Security Division internal revenue decline was
      the result of a lower level of demand from the Middle
      East.

The Company's gross profit margin in the fourth quarter was
17.6% versus 22.5% in the year-ago quarter.  This reduction
resulted primarily from the acquisition of S&S, which operates
at lower average gross margins.

   -- The S&S acquisition also impacted the Aerospace & Defense
      Group's gross margins, which declined to 14.8% versus
      19.5% in the year-ago quarter.  However, excluding the
      impact of the S&S acquisition, the Aerospace & Defense
      Group's gross margins would have been 18.8% for the
      quarter.

   -- The Products Group's gross margins increased to 38.7%
      versus 36.1% in the year-ago quarter due to a variety of
      factors, including improved manufacturing processes,
      better outsourcing and higher capacity utilization.

   -- The Mobile Security Division's gross margins decreased to
      18.0% from 20.4% in the same period last year, primarily
      due to a lower-margin mix of vehicles shipped in the
      quarter.

The company's selling, general and administrative expenses as a
percentage of revenue decreased to 7.7% versus 7.8% in the year-
ago quarter.  This improvement was primarily due to the
inclusion of the S&S business, which operates with lower average
operating expenses as a percentage of revenue.  This was
partially offset by additional investments in research and
development and in sales and marketing, as well as higher legal
fees.

Cash flow provided by operating activities for the fourth
quarter was US$29 million versus US$75 million in the year-ago
quarter.  Free cash flow, defined as net cash provided by
operating activities less purchases of property and equipment,
was US$18 million versus US$71 million in the same period last
year.  The decrease in free cash flow was primarily due to an
increase in working capital necessary to support a 42% increase
in fourth quarter revenues over third quarter, and an increased
investment in capital expenditures.

                    Year-to-Date Results

For the fiscal year ended Dec. 31, 2006, the company reported
revenue of US$2.4 billion, an increase of 44%, compared to
US$1.6 billion in the fiscal year ended Dec. 31, 2005.  Net
income for the fiscal year ended Dec. 31, 2006, was US$135
million versus US$133 million for the fiscal year ended
Dec. 31, 2005.  EBITDA for the fiscal year ended Dec. 31, 2006,
increased by 19% to US$280 million versus US$236 million in the
year-ago comparable period.

Excluding the impact of the S&S acquisition and a number of
other operating and non-operating items in both periods, pro
forma net income was $148 million for the fiscal year ended
Dec. 31, 2006, compared to US$144 million for the comparable
period in 2005.

Internal revenue growth, which includes increases or decreases
in acquired companies' current year revenues since the date of
acquisition versus the comparable prior year period, was 15%,
including 0.1% impact for foreign currency movements.  Internal
revenue growth/(decline) by segment, including foreign currency
movements, was 22% for the Aerospace & Defense Group, 5% for the
Products Group and (24%) for the Mobile Security Division from
the same period last year.

   -- The Aerospace & Defense Group internal revenue growth was
      primarily due to higher volumes of HMMWV related business
      partially offset by a reduction in medium and heavy truck
      kit business.

   -- The Products Group internal revenue growth was primarily
      due to stronger sales of domestic soft body armor and
      increased sales within our law enforcement duty gear and
      automotive businesses.

   -- The Mobile Security Division internal revenue decline was
      primarily the result of continued issues with the
      availability of base units to support customer orders and
      a lower level of demand from the Middle East.

The Company's gross profit margin for the fiscal year ended
Dec. 31, 2006, decreased to 19.6% versus 23.7% in the year-ago
level.  The reduction in gross margins resulted primarily from
the acquisition of S&S, which operates at lower average gross
margins.

   -- As a result of the S&S acquisition, the Aerospace &
      Defense Group's gross margins decreased to 16.3% versus
      20.7% in the year-ago level.  Excluding the impact of S&S,
      gross margins declined to 20.0% versus the prior year
      period.

   -- The Products Group's gross margins increased to 39.4%
      versus 37.0% in the year-ago level due to select selling
      price increases, continued expansion of lean manufacturing
      initiatives, increased utilization of our lower-cost
      manufacturing plants, and improved outsourcing of
      externally manufactured products.

   -- The Mobile Security Division's gross margins decreased to
      19.0% from 22.7% in the same period last year, primarily
      due to decreased overhead absorption caused by reduced
      production through-put, lower demand in the Middle East,
      and a less profitable sales mix.

The Company's selling, general and administrative expenses as a
percentage of revenue improved to 8.3% versus 8.5% in the year-
ago period.  This improvement was primarily due to the inclusion
of the S&S business, which operates with lower average operating
expenses as a percentage of revenue.  This was partially offset
by additional investments in research and development and in
sales and marketing, as well as higher legal fees.

Cash flow provided by operating activities for the fiscal year
ended Dec. 31, 2006, was US$139 million versus US$135 million in
the year-ago comparable period.  Free cash flow, defined as net
cash provided by operating activities less purchases of property
and equipment, was US$104 million for the fiscal year ended
Dec. 31, 2006, versus US$119 million in the same period last
year.

                        Balance Sheet

As of Dec. 31, 2006, the company reported:

   * Cash, cash equivalents, short-term investment securities
     and equity-based securities of US$40 million compared to
     US$500 million at Dec. 31, 2005.  Cash equivalents at
     Dec. 31, 2005, excluded US$29 million that was invested in
     equity-based securities, which was reflected on the
     company's balance sheet as a long-term asset in accordance
     with U.S.      GAAP.

   * Total debt (short-term, current portion and long-term) was
     US$767 million at Dec, 31, 2006, compared to US$497 million
     at Dec. 31, 2005.

The aggregate of cash, cash equivalents and short-term
investment securities declined and total debt increased during
the fiscal year ending Dec. 31, 2006, primarily to fund the
acquisition of S&S.

                          Guidance

The Company anticipates fiscal 2007 financial performance as
follows:

   -- Revenues of US$3.4 billion to US$3.6 billion with fully
      diluted earnings per share of US$4.80 to US$5.20.

   -- 2007 integration costs of US$0.04 to US$0.06 per share.

   -- 2007 internal research and development expenses of
      US$30 million to US$34 million.

   -- 2007 free cash flow of approximately US$100 million, which
      includes US$100 million to US$120 million of capital
      expenditures for expansion of our medium vehicle capacity
      and a ramp up of our capability to implement LTAS for the
      FMTV, expanded ballistic materials manufacturing
      capability and additional capacity for production of the
      M1151/52 and certain soldier equipage products.

   -- First quarter 2007 diluted earnings per share of US$1.07
      to US$1.12.

Headquartered in Jacksonville, Florida, Armor Holdings, Inc.
(NYSE: AH) -- 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 is 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.




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


US AIRWAYS: Withdraws Delta Air Merger Proposal
-----------------------------------------------
US Airways withdrew its offer to merge with Delta Air Lines Inc.
The airline was informed on Jan. 31 that the Official Unsecured
Creditors' Committee would not meet its demands by the airline's
established deadline of Feb. 1, 2007.  As previously announced,
US Airways' offer of US$5.0 billion in cash and 89.5 million
shares of US Airways stock would have expired on Feb. 1, 2007,
unless there was affirmative support from the Official Unsecured
Creditors' Committee for commencement of due diligence, making
the required filings under Hart-Scott-Rodino, as well as the
postponement of Delta's hearing on its Disclosure Statement
scheduled for Feb. 7, 2007.

US Airways Chairman and Chief Executive Officer Doug Parker
stated, "We are disappointed that the Committee, which has been
chosen to act on behalf of all Delta creditors, is ignoring its
fiduciary obligation to those creditors.  Our proposal would
have provided substantially more value to Delta's unsecured
creditors than the Delta stand-alone plan. We would have created
a better and more financially stable airline that offered more
choice to consumers and increased job security to its employees.
Our merger would have been able to be consummated in a
reasonable time-frame and we would have been able to obtain all
requisite regulatory approvals.

"The publicly traded bonds of Delta have fallen precipitously
since rumors of this Committee decision were leaked last week,
reducing the implied market valuation of what Delta's unsecured
creditors can expect to recover in these cases by over US$1.5
billion.  We empathize with the investors who purchased Delta
bonds at increasingly higher prices since our offer was
announced last November and thank them for their support of our
proposal and their confidence in our team.  It is now clear that
there will not be an opportunity with the Committee to move
forward in a timely or productive manner and as a result, we
have withdrawn our offer."

Mr. Parker added, "At US Airways, we are extremely confident in
our own stand-alone plan.  Earlier this week, we announced a
2006 profit (excluding charges) of over US$500 million, far and
away the best performance by a network airline.  Our employees
will share US$59 million of well-deserved profit sharing
payments as a result. Looking forward, we expect even higher
earnings and a higher profit sharing pool in 2007.  Our 35,000
employees are doing a wonderful job of transforming US Airways
and we are committed to building the best airline we can for
them.  I can't thank them enough for their support,
encouragement, and professionalism during this process.  I am
very proud of how our entire team performed."

                       About Delta Air

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

                      About US Airways

Headquartered in Arlington, Virginia, US Airways Group Inc.'s
(NYSE: LCC) -- http://www.usairways.com/-- primary business
activity is the ownership of the common stock of:

            * US Airways, Inc.,
            * Allegheny Airlines, Inc.,
            * Piedmont Airlines, Inc.,
            * PSA Airlines, Inc.,
            * MidAtlantic Airways, Inc.,
            * US Airways Leasing and Sales, Inc.,
            * Material Services Company, Inc., and
            * Airways Assurance Limited, LLC.

Under a chapter 11 plan declared effective on March 31, 2003,
USAir emerged from bankruptcy with the Retirement Systems of
Alabama taking a 40% equity stake in the deleveraged carrier in
exchange for US$240 million infusion of new capital.

US Airways and its subsidiaries filed another chapter 11
petition on Sept. 12, 2004 (Bankr. E.D. Va. Case No. 04-13820).
Brian P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J.
Canning, Esq., at Arnold & Porter LLP, and Lawrence E. Rifken,
Esq., and Douglas M. Foley, Esq., at McGuireWoods LLP, represent
the Debtors in their restructuring efforts.  In the Company's
second bankruptcy filing, it lists US$8,805,972,000 in total
assets and US$8,702,437,000 in total debts.

The Debtors' chapter 11 plan for its second bankruptcy filing
became effective on Sept. 27, 2005.  The Debtors completed their
merger with America West on the same date.

US Airways, US Airways Shuttle, and US Airways Express operate
approximately 3,800 flights per day and serve more than
230 communities in the U.S., Canada, Europe, the Caribbean, and
Latin America.  The new US Airways is a member of the Star
Alliance, which provides connections for customers to
841 destinations in 157 countries worldwide.

US Airways has operations in Japan, Australia, China, Costa
Rica, Philippines, and Spain, among others.


US AIRWAYS: Withdrawn Delta Bid Cues S&P to Affirm Ratings
----------------------------------------------------------
Standard & Poor's Ratings Services affirmed its ratings on US
Airways Group. and its major operating subsidiaries America West
Holdings Corp., America West Airlines Inc., and US Airways Inc.,
including the 'B-' corporate credit ratings.  The ratings were
removed from CreditWatch, where they were placed with developing
implications on Nov. 15, 2006.  The outlook is now positive.

"The affirmation is based on US Airways' announcement that it
has withdrawn its offer to merge with Delta Air Lines, after US
Airways was informed by Delta's unsecured creditors' committee
that it would not meet its demands by the Feb. 1, 2007 deadline
that US Airways had established," said Standard & Poor's credit
analyst Betsy Snyder.

"Although US Airways estimated that successful completion of the
merger would result in synergies of approximately US$1.7
billion, the combined debt burden would have increased by more
than US$5 billion," she continued.

The positive outlook reflects the company's improved operating
performance and liquidity; trends that are expected to continue.
However, a modest upgrade would be reliant on successful
integration of labor at both airlines.

US Airways has operations in Japan, Australia, China, Costa
Rica, Philippines, and Spain, among others.


* COSTA RICA: Mulling to Speed Up International Pact Approval
-------------------------------------------------------------
Costa Rican lawmakers have started discussing about a reform in
Asamblea Legislativa rules to accelerate ratification of
international accords like the nation's free trade pact with the
US, A.M. Costa Rica reports.

A.M. Costa Rica underscores that the reform would remove the
lawmakers' power to make certain motions of revision to the
agreements being considered.

According to the report, Mayi Antillon Guerrero, Partido
Liberacion Nacional's leader, supported the changes.

However, Rafael Elias Madrigal Brenes of the Partido Accion
Ciudadana objected the changes.  He explained to A.M. Costa
Rica, "We have many reasons to oppose a treaty that does not
correspond to the best interests of the country."

The free trade pact was a tax measure that should not be
considered in a fast-track process.  The treaty addresses import
duties, A.M. Costa Rica says, citing Mr. Madrigal.

Francisco Antonio Pacheco, Asamblea Legilativa's head, adjourned
the session to allow a legislative committee to study the
proposed changes.  Lawmakers will be having another meeting to
further discuss the changes, A.M. Costa Rica states.

                        *    *    *

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




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


* CUBA: Has Over 350,000 Participants in Agriculture Program
------------------------------------------------------------
Over 350,000 people have participated in Cuba's Urban
Agriculture Program, which was launched in 1994 and has
progressively extended to other Latin American nations, the
Cuban News Agency reports.

According to the Cuban News Agency, the Urban Agriculture
Program is based on an agro-ecological approach that replaces
chemical fertilizers and pesticides with organic fertilizers and
biological controls.  The program has resulted to the annual
production of up to four million tons of vegetables for the last
five years.

Statistics from the Cuban Association of Agriculture and
Forestry Technicians indicated that 40,000 of those workers are
retired people and almost 68,000 are women, the Cuban News
Agency relates, citing the Institute of Research on Tropical
Agriculture, the agriculture program's sponsor.

At least 10,600 university graduates and 27,900 technicians in
Cuba have joined in 28 urban agriculture projects, the Cuban
News Agency states.

                        *    *    *

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

Moody's had assigned these ratings on Cuba:

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




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


* DOMINICAN REPUBLIC: Central Bank Issuing DOP1.5B Certificates
---------------------------------------------------------------
The Dominican Republic's central bank will place DOP1.5 billion
in investment certificates, Dominican Today reports.

Dominican Today underscores that these entities can participate:

          -- multiple banking firms,
          -- savings and loan institutions,
          -- credit corporations,
          -- savings and loan cooperatives,
          -- institutional investors,
          -- insurance companies,
          -- private and public investment funds,
          -- stock exchange,
          -- other non-financial entities, and
          -- the general public.

According to Dominican Today, terms for investment are 35, 91,
182 and 364 days, while the minimum amount for offers is set at
RD$100,000.

Bidding forms can be accessed at the Central Bank's Web page at
http://www.bancentral.gov.do/

                        *    *    *

The Troubled Company Reporter-Latin America reported on
May 9, 2006, that Fitch Ratings upgraded these debt and issuer
Default Ratings of the Dominican Republic:

   -- Long-term foreign currency Issuer Default Rating
      to B from B-;

   -- Country ceiling upgraded to B+ from B-;

   -- Foreign currency bonds due 2006 to B-/RR4 from CCC+/RR4;

   -- Foreign currency Brady bonds due 2009 to B/RR4
      from B-/RR4;

   -- Foreign currency bonds due 2011 to B/RR4 from B-/RR4;

   -- Foreign currency bonds due 2013 to B-/RR4 from CCC+/RR4;

   -- Foreign currency bonds due 2018 to B/RR4 from B-/RR4; and

   -- Foreign currency collateralized Brady bonds due 2024
      to B+/RR3 from B/RR3.

Fitch also affirmed these ratings:

   -- Long-term local currency Issuer Default Rating: B; and

   -- Short-term Issuer Default Rating: B.

Additionally, Fitch assigned a debt and Recovery Rating to this
issue:

   -- Foreign currency bonds due 2027: B/RR4.

Fitch said the rating outlook for the long-term foreign and
local currency IDRs is Stable.




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


* ECUADOR: Bonds Rise on Statement to Seek Friendly Accord
----------------------------------------------------------
Ecuadorian dollar bonds of 10% due 2030 recorded its biggest
gain three months after the country's Economy Minister Ricardo
Patino disclosed that the government may request for a
"friendly" renegotiation of foreign debt, Bloomberg News
reports.

Minister Patino's announcement caused investors to assume that
the Ecuadorian government may back off its offensive attitude
with bondholders, causing in return to the upsurge of the bonds
from 5.75 cents on the dollar to 74, Bloomberg continues.

Minister Patino remarked to Bloomberg that a negotiation that is
pressure-free is more convenient, and it is wise to remember
that creditors are not the government's enemies.

"These statements are certainly more conciliatory than the
disconcerting rhetoric that has characterized previous official
statements on the external debt issue," Alberto Ramos, a senior
Latin America economist at Goldman Sachs Group Inc. in New York,
said in a note to clients.

According to JPMorgan Chase & Co., the bonds' yield fell to 1.16
percentage points to 13.73%.

Two days after Pres. Correa took office, Minister Patino told
investors in Quito that the government may only pay off 40% of
the total foreign debt, due to plans to ease up funds for
spending on health care and education, Bloomberg says.

Citigroup Inc. analysts Don Hanna and Jose Wynne said that
Minister Patino discussed taking on a "friendly" restructuring.
The analysts, however, are skeptical that the minister's remarks
would imply a shift, the same report relates.

"What they regard as friendly is not the same thing investors
think is friendly," Edwin Gutierrez, who manages US$2.2 billion
of emerging-market debt at Aberdeen Asset Management Plc in
London, told Bloomberg.

Pres. Correa remarked in his inaugural address that his
administration considers the US$11 foreign debt to be
illegitimate because it was secured through a military
dictatorship years ago, Bloomberg relates.

According to El-Universo newspaper, Minister Patino declared on
Jan. 27 that he won't be delivering the debt-restructuring plan
in January, explaining that the Ecuadorian government is taking
time to consider if to restructure the debt would be suitable at
this time.

"It was overly optimistic to think they could come up with a
plan in two weeks," Cathy Elmore, who helps manage US$700
million of emerging-market debt at WestLB Mellon Asset
Management in London, told Bloomberg.  "I don't think they've
made any decisions yet."

El Universo reported that on Jan. 26, Argentine officials visied
Ecuador to meet with the minister to advise on the restructuring
of the country's foreign debt.

                        *    *    *

As reported in the Troubled Company Reporter on Jan. 25, 2007,
Fitch Ratings downgraded the long-term foreign currency Issuer
Default Rating of Ecuador to 'CCC' from 'B-', indicating that
default is a real possibility in the near term.

In addition, these ratings were downgraded:

   -- Uncollateralized foreign currency bonds to
      'CCC/RR4' from 'B-/RR4';

   -- Collateralized foreign currency Par and Discount
      Brady bonds to 'CCC+/RR3' from 'B/RR3'; and

   -- Short-term foreign currency IDR to 'C' from 'B'.

Fitch also affirmed the Country ceiling rating at 'B-'.


* ECUADOR: Farmers Seek Imports & Exports Nationalization
---------------------------------------------------------
ABO, an association of El Oro banana growers, has proposed that
the Ecuadorian government nationalize all agricultural imports
and exports of the nation, Fresh Plaza reports.

The ABO members told Fresh Plaza that nationalization of imports
and exports boosts profits for the growers.

Fresh Plaza notes that nationalization could also correct the
chaos in the banana production and exports sector.

The government has to form a special entity that would manage
the nationalization to regulate the transition, Fresh Plaza
states.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Feb. 1, 2007, Moody's Investors Service downgraded Ecuador's
sovereign ratings in light of mounting concerns regarding the
size of creditor losses in the event of a default and in view of
the impact such default would inflict upon Ecuador's
macroeconomic framework.

Ecuador's foreign-currency government bond rating and the
foreign-currency country bond ceiling were downgraded to Caa2
with a negative outlook from Caa1 with a stable outlook.  The
outlook on the Caa2 foreign currency deposit ceiling was revised
to negative from stable. Moody's also downgraded the country
ceiling for local-currency deposits from Caa1 to Caa2 with a
negative outlook.




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


CONTINENTAL AIRLINES: To Add US$35 Million to Pension Plans
-----------------------------------------------------------
Continental Airlines Inc. will make an early contribution of an
additional US$35 million in cash to its defined benefit pension
plans.  This amount is in addition to a US$71 million
contribution made less than a month ago and is being made prior
to the next required payment due date in April.

"We remain focused on meeting our pension commitments to our
employees," said Larry Kellner, chairman and chief executive
officer.  "Our company culture is strongly linked to our co-
workers' trust that we will meet these commitments now and in
the future."

This pension contribution will be made with the proceeds of
recent sales of substantially all of Continental's remaining
shares of ExpressJet Airlines Inc. (NYSE: XJT).  The disposition
of those shares was consistent with previous dispositions by the
company of non-core assets.  Continental will receive the
proceeds from the last portion of its sales on Monday, Feb. 5,
2007, and will make its pension contribution on that date.

Since the beginning of 2002, Continental has contributed more
than US$1.2 billion to its pension plans.

Continental Airlines Inc. (NYSE: CAL) -- http://continental.com/
-- is the world's fifth largest airline.  Continental, together
with Continental Express and Continental Connection, has more
than 3,200 daily departures throughout Mexico, Europe and Asia,
serving 154 domestic and 138 international destinations
including Honduras and Bonaire.  More than 400 additional points
are served via SkyTeam alliance airlines.  With more than 43,000
employees, Continental has hubs serving New York, Houston,
Cleveland and Guam, and together with Continental Express,
carries approximately 61 million passengers per year.
Continental consistently earns awards and critical acclaim for
both its operation and its corporate culture.

                        *    *    *

As reported in the Troubled Company Reporter on Nov. 10, 2006
Moody's Investors Service assigned ratings of Caa1, LDG5-75% to
the US$200 million of senior unsecured notes issued by
Continental Airlines Inc.'s.  Moody's affirmed the B3 corporate
family rating.  Moody's said the outlook is stable.

As reported in the Troubled Company Reporter on Oct. 23, 2006,
Standard & Poor's Ratings Services affirmed its ratings,
including the 'B' long-term and 'B-3' short-term corporate
credit ratings, on Continental Airlines Inc.  The outlook is
revised to stable from negative.  Continental has about US$17
billion of debt and leases.

At the same time, Fitch Ratings has upgraded Continental
Airlines Inc.'s Issuer Default Rating to 'B-' from 'CCC' and
Senior Unsecured Debt to 'CCC/RR6' from 'CC/RR6'.  Fitch said
the rating outlook was stable.


CONTINENTAL AIRLINES: Issues 4.26 Million Shares of Common Stock
----------------------------------------------------------------
Continental Airlines Inc. disclosed that the holders of
approximately US$170 million principal amount of its 4.50%
Convertible Notes due Feb. 1, 2007, have elected to convert
their notes into shares of Continental's common stock.

The conversion price was US$40 per share and, as a result,
Continental is issuing approximately 4.26 million shares of its
common stock to those holders.

Continental Airlines Inc. (NYSE: CAL) -- http://continental.com/
-- is the world's fifth largest airline.  Continental, together
with Continental Express and Continental Connection, has more
than 3,200 daily departures throughout Mexico, Europe and Asia,
serving 154 domestic and 138 international destinations
including Honduras and Bonaire.  More than 400 additional points
are served via SkyTeam alliance airlines.  With more than 43,000
employees, Continental has hubs serving New York, Houston,
Cleveland and Guam, and together with Continental Express,
carries approximately 61 million passengers per year.
Continental consistently earns awards and critical acclaim for
both its operation and its corporate culture.

                        *    *    *

As reported in the Troubled Company Reporter on Nov. 10, 2006,
Moody's Investors Service assigned ratings of Caa1, LDG5-75% to
the US$200 million of senior unsecured notes issued by
Continental Airlines Inc.'s.  Moody's affirmed the B3 corporate
family rating.  Moody's said the outlook is stable.

As reported in the Troubled Company Reporter on Oct. 23, 2006,
Standard & Poor's Ratings Services affirmed its ratings,
including the 'B' long-term and 'B-3' short-term corporate
credit ratings, on Continental Airlines Inc.  The outlook is
revised to stable from negative.  Continental has about US$17
billion of debt and leases.

At the same time, Fitch Ratings has upgraded Continental
Airlines Inc.'s Issuer Default Rating to 'B-' from 'CCC' and
Senior Unsecured Debt to 'CCC/RR6' from 'CC/RR6'.  Fitch said
the rating outlook was stable.


* HONDURAS: Files Claim Over Fuel Storage Price on Failed Talks
---------------------------------------------------------------
The Honduran government has filed a claim with the attorney
general's office after failed talks with Dippsa, an oil importer
and distributor, on fuel storage price, the presidential Web
site reports.

Pres. Manuel Zelaya and Dippsa chief Henry Arevalo met to
negotiate a price settlement on fuel storage.  Mr. Arevalo did
not accept the government's offer of US$0.03/gallon and pushed
for US$0.065/gallon, BNamericas says.

"With US$0.03/gallon (HNL1.13), I don't cover my costs," Mr.
Arevalo told BNamericas and clarified that he asked for
US%0.06/gallon and not US$0.065/gallon.  He added that service
stations earn HNL4.60/gallon while the government earns as much
as HNL22/gallon.

Early January, the government passed an emergency decree that
required companies with fuel storage infrastructure to rent
storage tanks.

Mr. Arevalo reiterated that Dippsa's concession contract with
the Honduran government called for the storage tank rental when
the government declares an emergency.  He argued that the
government has not declared one when oil price was at
US472/barrel, so why should it now when price is at
US$50/barrel, BNamericas relates.

                        *    *    *

Moody's Investor Service assigned these ratings on Honduras:

                     Rating     Rating Date

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




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


AIR JAMAICA: Cabinet Approves Restructuring Plan
------------------------------------------------
Jamaica's Cabinet approved Monday Air Jamaica's latest business
plan that is targeted at making the airline profitable.

Chief Executive Officer Michael Conway and Board Chairman O.K.
Melhado presented the plan to Cabinet, local reports say.

Cabinet rejected the airline's previous plan with
recommendations for downsizing, eliminating unprofitable routes
and refleeting.  The law-making body accepted the revised plan
after taking into account deliberations by a Parliament-
appointed select committee, which is reviewing the airline's
losses and viability, The Jamaican Observer reports.

The Jamaica Gleaner says the new strategies discussed in the
plan are aimed at:

   -- achieving increased reliability,
   -- rationalizing routes,
   -- consolidating the airline's administration in Kingston,
   -- outsourcing of Air Jamaica Vacations and
   -- converting of the current Airbuses to Boeing.

The airline, according the Observer, needs at least US$125
million in fresh capital to keep operating for the next two
years.

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

                        *    *    *

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


KAISER ALUMINUM: Competes Secondary Offering of Common Stock
------------------------------------------------------------
Kaiser Aluminum Corp. completed the secondary offering of
6,281,150 shares of common stock by certain of its existing
stockholders at a public offering price of US$61.25 per share.
The number of shares sold in the offering includes 819,280
shares sold pursuant to the over-allotment option granted to the
underwriters by one of the selling stockholders, a voluntary
employees' beneficiary association trust that provides benefits
to eligible retirees represented by certain unions. The company
did not sell any shares in, and will not receive any of the
proceeds from, this secondary offering.

UBS Securities LLC and Bear, Stearns & Co. Inc. acted as joint
book-running managers and Lehman Brothers Inc. and Lazard
Capital Markets LLC acted as co-managers of the offering.

Headquartered in Foothill Ranch, California, Kaiser Aluminum
Corp. -- http://www.kaiseraluminum.com/-- is a leading producer
of fabricated aluminum products for aerospace and high-strength,
general engineering, automotive, and custom industrial
applications.  The Company, along with its Jamaican
subsidiaries, filed for chapter 11 protection on Feb. 12, 2002
(Bankr. Del. Case No. 02-10429), and has sold off a number of
its commodity businesses during course of its cases.  Corinne
Ball, Esq., at Jones Day, represents the Debtors in their
restructuring efforts.  Lazard Freres & Co. serves as the
Debtors' financial advisor.  Lisa G. Beckerman, Esq., H. Rey
Stroube, III, Esq., and Henry J. Kaim, Esq., at Akin, Gump,
Strauss, Hauer & Feld, LLP, and William P. Bowden, Esq., at
Ashby & Geddes represent the Debtors' Official Committee of
Unsecured Creditors.  The Debtors' Chapter 11 Plan became
effective on July 6, 2006, and the company emerged from Chapter
11.  On June 30, 2004, the Debtors listed US$1.619 billion in
assets and US$3.396 billion in debts.




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


AFFILIATED COMP: Wins Automation Pact on Mexico Fare Collection
---------------------------------------------------------------
Affiliated Computer Services, Inc., has been awarded a contract
by Mexico City metro operator Sistema de Transporte Colectivo or
STC to deliver a contactless ticketing automated fare collection
system.  The contract is valued at US$9.3 million.

After a successful pilot program, STC decided to make
contactless ticketing a standard feature across its system.  The
contract runs through November 2007, during which time ACS will
extend this technology across the network, equipping 2,000
platform access gates with contactless card readers and
deploying manual and automatic ticket sale points.  ACS will
also equip each metro station with a supervision system and data
concentrator, as well as an optical fibre intelligent
communication network linking equipment.

"Right from the word go there was no room for mistakes.  If we
were to persuade our four million daily users to adopt a
modernised system, we first had to prove that it would be
efficient," explained Florencia Serrania, former manager of STC
who initiated the Mexico City metro contactless ticketing
project before handing it over to Fransisco Bojorquez, the
current General Manager.

ACS proved that it was capable of deploying contactless e-
ticketing on disparate magnetic equipment, some more than 30
years old, thus validating the selected technologies and their
seamless co-existence with magnetic stripe ticketing.  ACS is
the first and only operator to use this dual technology on a
single system.

"ACS' capabilities as a systems integrator and supplier of
innovative and complex fare collection systems continue to
improve public transportation around the globe," said Tom
Burlin, Chief Operating Officer - Government.  "We look forward
to many years of serving the transportation needs of Mexico City
and its citizens."

The Mexican capital thus joins Lyons, France, Melbourne,
Australia, Zurich, Switzerland, and Montreal, Canada, on the
list of major international cities recently deploying ACS
contactless ticketing systems.

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, Ireland, Philippines, Poland and Singapore.

                        *     *     *

As reported in the Troubled Company Reporter on Nov. 29, 2006,
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.


BALDOR ELECTRIC: Completes Acquisition of Reliance Electric
-----------------------------------------------------------
Baldor Electric Co. has completed the acquisition of Reliance
Electric Co., including Dodge mechanical and Reliance Electric
motors, from Rockwell Automation.

Details of the acquisition will be discussed when the company
releases its fourth quarter and fiscal year 2006 financial
results.

Baldor Electric Company is a manufacturer of industrial electric
motors, drives and generators.  Baldor is headquartered in Fort
Smith, Arkansas.   Power Systems is a leading provider of Dodge
power transmission products, including mounted bearings and
enclosed gearing, and Reliance Electric industrial motors,
including large AC and custom, variable speed and specialty, and
small and medium AC motors.  The company has offices in Mexico.

                        *    *    *

Moody's Investors Service affirmed on Jan. 26, 2007, the B1
corporate family rating of Baldor Electric Company along with
the Ba3 ratings for the proposed senior secured credit
facilities and B3 ratings for the proposed US$550 million senior
unsecured notes following the company's disclosure that the
company intends to eliminate a preferred stock issuance from its
previously announced financing plans.  The rating outlook is
stable.  These first-time ratings are subject to final
documentation.


CELESTICA INC: Weak Results Cue S&P to Put Ratings on Watch
-----------------------------------------------------------
Standard & Poor's Ratings Services placed its ratings, including
its 'BB-' long-term corporate credit rating, on Celestica Inc.
on CreditWatch with negative implications.  This action follows
the company's weak fourth-quarter (ended Dec. 31, 2006)
operating results, which reflected larger-than-expected weakness
in end-market demand, particularly with respect to key
telecommunications clients and persistent problems at the
company's Mexican operations.

"Although revenues from the majority of Celestica's customer
segments grew in the fourth quarter, revenues from the
telecommunications segment declined 28% from the third quarter,"
said Standard & Poor's credit analyst Don Povilaitis.
"Likewise, revenues declined from the automotive and defense
segments, as well as the consumer business segment, demand of
which (despite an element of seasonality) has become inherently
unpredictable," added Mr. Povilaitis.

The company's Mexican operations remain challenged, affected by
the continued execution issues that resulted in lost customers
and an unadjusted EBIT loss.  Celestica has a three-step plan to
rectify its production problems, including reducing parts
complexity, reducing multiple platforms (thereby simplifying
production processes), and ensuring reliable delivery by
consolidating warehouses.  The company also has transferred
several customer orders to its Asian facilities.

Standard & Poor's remains concerned with Celestica's prospects
for fiscal 2007, with no improvement expected before the second
half of 2007, as the company is likely to remain challenged by
persistent weakness in the telecommunications segment and the
effect of more customer disengagements.  In addition, Standard &
Poor's is concerned by the potential disruption caused by recent
management turnover, with the imminent resignation of CFO Tony
Puppi, which follows the departure in late 2006 of President
Steve Delaney.

Standard & Poor's will meet with Celestica's management shortly
in order to resolve the CreditWatch placement.

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.


DELTA AIR: Unofficial Panel Upset by Official Panel's Rejection
---------------------------------------------------------------
Delta Air Lines Inc.'s unofficial committee of unsecured
claimholders expressed its disappointment that the official
creditors' committee declined to take the actions requested by
US Airways Inc. in connection with its merger proposal, thereby
denying creditors the option to choose whether to accept Delta's
standalone reorganization plan or pursue strategic alternatives.

The unofficial committee previously sent a letter to the
official creditors' committee signed by holders of approximately
US$2.75 billion in unsecured claims urging them to take the
actions requested by US Airways.  Their failure to do so may
very well result in substantially diminished creditor recoveries
in this case.

The unofficial committee recognizes that current Delta
management's hostility to the US Airways offer complicated the
decision of the official creditors' committee.  As the largest
organized group of unsecured claimholders of Delta, the
Unofficial Committee believes that it is important that both
committees now work together to decide on important remaining
issues facing all creditors.

The unofficial committee will continue to work towards
maximizing creditor recoveries and creditor rights in Delta's
chapter 11 case.  As future shareholders of Delta, the members
of the Unofficial Committee consider it essential that all
value-enhancing opportunities continue to be explored.  In the
immediate term, it is an important priority that reorganized
Delta be positioned to have the right management, board of
directors and compensation arrangements in place and that its
corporate governance not pose any obstacles to value-enhancing
mergers or other strategic alternatives.  The unofficial
committee looks forward to working with the official creditors'
committee to institute the foregoing.

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: US Airways Withdraws Merger Proposal
-----------------------------------------------
US Airways withdrew its offer to merge with Delta Air Lines Inc.
The airline was informed on Jan. 31 that the Official Unsecured
Creditors' Committee would not meet its demands by the airline's
established deadline of Feb. 1, 2007.  As previously announced,
US Airways' offer of US$5.0 billion in cash and 89.5 million
shares of US Airways stock would have expired on Feb. 1, 2007,
unless there was affirmative support from the Official Unsecured
Creditors' Committee for commencement of due diligence, making
the required filings under Hart-Scott-Rodino, as well as the
postponement of Delta's hearing on its Disclosure Statement
scheduled for Feb. 7, 2007.

US Airways Chairman and Chief Executive Officer Doug Parker
stated, "We are disappointed that the Committee, which has been
chosen to act on behalf of all Delta creditors, is ignoring its
fiduciary obligation to those creditors.  Our proposal would
have provided substantially more value to Delta's unsecured
creditors than the Delta stand-alone plan. We would have created
a better and more financially stable airline that offered more
choice to consumers and increased job security to its employees.
Our merger would have been able to be consummated in a
reasonable time-frame and we would have been able to obtain all
requisite regulatory approvals.

"The publicly traded bonds of Delta have fallen precipitously
since rumors of this Committee decision were leaked last week,
reducing the implied market valuation of what Delta's unsecured
creditors can expect to recover in these cases by over US$1.5
billion.  We empathize with the investors who purchased Delta
bonds at increasingly higher prices since our offer was
announced last November and thank them for their support of our
proposal and their confidence in our team.  It is now clear that
there will not be an opportunity with the Committee to move
forward in a timely or productive manner and as a result, we
have withdrawn our offer."

Mr. Parker added, "At US Airways, we are extremely confident in
our own stand-alone plan.  Earlier this week, we announced a
2006 profit (excluding charges) of over US$500 million, far and
away the best performance by a network airline.  Our employees
will share US$59 million of well-deserved profit sharing
payments as a result.  Looking forward, we expect even higher
earnings and a higher profit sharing pool in 2007.  Our 35,000
employees are doing a wonderful job of transforming US Airways
and we are committed to building the best airline we can for
them.  I can't thank them enough for their support,
encouragement, and professionalism during this process.  I am
very proud of how our entire team performed."

                      About US Airways

Headquartered in Arlington, Virginia, US Airways Group Inc.'s
(NYSE: LCC) -- http://www.usairways.com/-- primary business
activity is the ownership of the common stock of:

            * US Airways, Inc.,
            * Allegheny Airlines, Inc.,
            * Piedmont Airlines, Inc.,
            * PSA Airlines, Inc.,
            * MidAtlantic Airways, Inc.,
            * US Airways Leasing and Sales, Inc.,
            * Material Services Company, Inc., and
            * Airways Assurance Limited, LLC.

Under a chapter 11 plan declared effective on March 31, 2003,
USAir emerged from bankruptcy with the Retirement Systems of
Alabama taking a 40% equity stake in the deleveraged carrier in
exchange for US$240 million infusion of new capital.

US Airways and its subsidiaries filed another chapter 11
petition on Sept. 12, 2004 (Bankr. E.D. Va. Case No. 04-13820).
Brian P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J.
Canning, Esq., at Arnold & Porter LLP, and Lawrence E. Rifken,
Esq., and Douglas M. Foley, Esq., at McGuireWoods LLP, represent
the Debtors in their restructuring efforts.  In the Company's
second bankruptcy filing, it lists US$8,805,972,000 in total
assets and US$8,702,437,000 in total debts.

The Debtors' chapter 11 plan for its second bankruptcy filing
became effective on Sept. 27, 2005.  The Debtors completed their
merger with America West on the same date.

US Airways, US Airways Shuttle, and US Airways Express operate
approximately 3,800 flights per day and serve more than
230 communities in the U.S., Canada, Europe, the Caribbean, and
Latin America.  The new US Airways is a member of the Star
Alliance, which provides connections for customers to
841 destinations in 157 countries worldwide.

US Airways has operations in Japan, Australia, China, Costa
Rica, Philippines, and Spain, among others.

                      About Delta Air

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


DELTA AIR: CEO Comments on Creditors' Committee Support for Plan
----------------------------------------------------------------
Delta Air Lines Chief Executive Officer Gerald Grinstein issued
a statement regarding the Unsecured Creditors' Committee's
support for Delta's plan of reorganization:

"This is a proud day for the thousands of Delta people,
customers, communities, civic leaders and others who stood up
for our standalone plan and said, emphatically, 'Keep Delta My
Delta.'  We appreciate the Unsecured Creditors' Committee's
endorsement of our plan of reorganization and the diligent work
of the Committee and its advisers in evaluating that plan.  We
also want to acknowledge the tireless work of all Delta people
whose contributions are allowing us to continue the tremendous
progress we have made with our restructuring plan. Using the
bankruptcy process the right way, Delta people have transformed
their company's business model.  Our focus now is on the work
still before us to emerge from Chapter 11 this spring as a
strong, healthy, and vibrant global competitor."

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: S&P Holds D Rating on Withdrawn US Airways Offer
-----------------------------------------------------------
US Airways Group Inc. dropped its proposed acquisition bid for
Delta Air Lines Inc., removing the largest obstacle to Delta's
plan to emerge from Chapter 11 as a standalone entity.  The
announcement has no effect on Standard & Poor's Ratings
Services' 'D' corporate credit rating on Delta or the
CreditWatch review of various aircraft-backed debt.

Standard and Poor's ratings of enhanced equipment trust
certificates, excepting 'AAA'-rated, bond-insured issues, remain
on CreditWatch with developing implications, pending completion
of a review of their treatment in Delta's proposed plan of
reorganization.

Standard & Poor's will assign a new corporate credit rating to
Delta upon its emergence from bankruptcy, expected in the spring
of 2007.

"Delta was able to persuade a majority of its bankruptcy
creditors' committee that the airline's plan to emerge as an
independent company carried less risk than US Airways' proposal,
which involved added debt and antitrust review by federal
authorities," said Standard & Poor's credit analyst Philip
Baggaley.

Delta's case was helped by the fact that the creditors'
committee, which represents unsecured creditors, included
representatives of employees' union, suppliers, and the Pension
Benefit Guaranty Corp., in addition to bondholders and other
lenders.  The interests of these various parties varied, making
it more difficult for US Airways to line up a majority than
would be the case for a typical non-bankrupt company, whose
shareholders are mostly institutional investors.  Delta's
management has stated that the company does not exclude the
possibility of entertaining other merger proposals at some point
after it emerges from bankruptcy, despite opposition to US
Airways' bid.

Delta had lined up US$2.5 billion of bankruptcy emergence
financing.  The company must finalize negotiations with various
creditors regarding their proposed compensation under the plan
of reorganization and secure their voting approval of the plan.

The creditors' committee's rejection of US Airways' proposal is
separate from individual voting by each class of impaired
creditors on the proposed plan of reorganization.  It is
possible, though not considered likely, that Delta could fail to
secure the needed two-thirds of the dollar amount and a majority
of the number of claims of unsecured creditors for its plan,
despite today's action by the creditors' committee.  If it
appeared that such an outcome were possible, Delta would likely
change the terms of the compensation offered to creditors in
order to secure their support for the plan.

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.


GRUPO MEXICO: Investing Part of Cash Reserves in Railroad
---------------------------------------------------------
A spokesperson of Grupo Mexico SA de CV told Arizona Daily Star
that the company will use part of its cash reserves on its
railroad division.

The Star relates that Grupo Mexico has built up US$530 million
in reserves in 2006.

Eduardo Gonzalez, chief financial officer of Grupo Mexico's
Southern Copper Corp. told The Star that the parent firm's net
income increased 50% to US$447.3 million in the fourth quarter
of 2006, from US$298.3 million in 2005, after copper prices
increased 57%.

Grupo Mexico may invest in ports, warehouses and other
infrastructure to stimulate growth at Infraestructura y
Transporte Mexico SA de CV, The Star notes, citing Mr. Gonzalez.

Mr. Gonzalez denied to The Star that Grupo Mexico is planning
acquisitions.

"We have no intent to use our cash reserves as a war chest.  We
will be responsible with our cash and won't do wild things.  We
will stick to our core business of transport and mining," Mr.
Gonzalez commented to The Star.

Grupo Mexico SA de C.V. -- http://www.grupomexico.com/--
through its ownership of Asarco and the Southern Peru Copper
Company, Grupo Mexico is the world's third largest copper
producer, fourth largest silver producer and fifth largest
producer of zinc and molybdenum.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Dec. 29, 2006, Fitch Ratings upgraded the local and foreign
currency Issuer Default Rating Outlook is Stable.


KRISPY KREME: Daryl Brewster & Charles Blixt Elected on Board
--------------------------------------------------------------
Krispy Kreme Doughnuts Inc. reported the results of its annual
meeting of shareholders held in Winston-Salem, North Carolina.

Elected to the company's Board of Directors at the meeting were:

   a) Daryl G. Brewster, Krispy Kreme President and Chief
      Executive Officer, and

   b) Charles A. Blixt, Krispy Kreme General Counsel.

In addition, six directors were re-elected to the Board:

   a) James H. Morgan, Chairman of the Board,
   b) Andrew J. Schindler,
   c) Robert L. Strickland,
   d) Michael H. Sutton,
   e) Lizanne Thomas and
   f) Togo D. West, Jr.

Shareholders also rejected a shareholder proposal to declassify
the Board.

                     About Krispy Kreme

Founded in 1937 in Winston-Salem, North Carolina, Krispy Kreme
(NYSE: KKD) -- http://www.krispykreme.com/-- is a branded
specialty retailer of premium quality doughnuts, including the
Company's signature Hot Original Glazed.  There are currently
approximately 320 Krispy Kreme stores and 80 satellites
operating systemwide in 43 U.S. states, Australia, Canada,
Mexico, the Republic of South Korea and the United Kingdom.

Headquartered in Winston-Salem, North Carolina, Freedom Rings
LLC is a majority-owned subsidiary and franchisee partner of
Krispy Kreme Doughnuts, Inc., in the Philadelphia region.
Freedom Rings operates six out of the approximately 360 Krispy
Kreme stores and 50 satellites located worldwide.  The Company
filed for chapter 11 protection on Oct. 16, 2005 (Bankr. D. Del.
Case No. 05-14268).  M. Blake Cleary, Esq., Margaret B.
Whiteman, Esq., and Matthew Barry Lunn, Esq., at Young Conaway
Stargatt & Taylor, LLP, represent the Debtor in its
restructuring efforts.  When the Debtor filed for protection
from its creditors, it estimated US$10 million to US$50 million
in assets and debts.

Headquartered in Oak Brook, Illinois, Glazed Investments, LLC,
is a 97%-owned unit of Krispy Kreme.  Glazed filed for chapter
11 protection on Feb. 3, 2006 (Bankr. N.D. Ill. Case No.
06-00932).  The bankruptcy filing will facilitate the sale of 12
Krispy Kreme stores, as well as the franchise development rights
for Colorado, Minnesota and Wisconsin, for approximately US$10
million to Westward Dough, the Krispy Kreme area developer for
Nevada, Utah, Idaho, Wyoming and Montana.  Daniel A. Zazove,
Esq., at Perkins Coie LLP represents Glazed in its restructuring
efforts.  When Glazed filed for protection from its creditors,
it estimated assets and debts between US$10 million to US$50
million.

KremeKo Inc., Krispy Kreme's Canadian franchisee, is currently
restructuring under the Companies' Creditors Arrangement Act.
Pursuant to the Court's Initial Order, Ernst & Young Inc. was
appointed as Monitor in KremeKo's CCAA proceedings.  The Monitor
is attempting to sell the KremeKo business.

The U.S. District Court for the Middle District of North
Carolina has set Feb. 7, 2007, as the hearing date for the final
approval of the terms of the settlement of the shareholder
derivative action entitled Wright v. Krispy Kreme Doughnuts
Inc., et al.


REMY INT: To Sell Remanufacturing Asset & Systems to Caterpillar
----------------------------------------------------------------
Remy International, Inc., signed an agreement for the sale of
its light and medium truck diesel engine and component
remanufacturing business conducted by Franklin Power Products,
Inc. and International Fuel Systems to Caterpillar Inc. for a
cash purchase price of US$150 million.  The purchase price is
subject to adjustment for net investment in the business,
including working capital, at closing.  The transaction is
subject to customary closing conditions, and is expected to
close before the end of the first quarter of 2007.

"The sale to Caterpillar represents a strategic opportunity to
realize value for our stakeholders," said John Weber, President
and Chief Executive Officer of Remy International.  "This
business has performed very well, which is a testament to the
total commitment of the employees to quality and lean
manufacturing.  I want to thank these employees for their
dedication and efforts."

"This acquisition represents an excellent strategic fit between
Cat Reman and these two companies.  It increases our overall
product and service offering, and will provide a platform for
future growth opportunities for Cat Reman," said Steve Fisher,
Caterpillar vice president with responsibility for
remanufacturing.

The first US$50 million of proceeds from the transaction will be
held in a restricted account, pledged as collateral to the
company's senior lenders and available for withdrawal only with
consent of the lenders under the company's senior credit
facility.  Next, the proceeds will be used to pay down
outstanding revolver borrowings at the time of the closing under
the company's senior secured revolving credit and term loan
facility and the revolving lender commitments under the
facility, currently US$160 million, will be reduced by US$40
million.  Any remaining proceeds also will be held in the
restricted account, and generally will be available for use by
the company for capital expenditures, to repay revolver
borrowings (with a corresponding reduction in the revolver
commitment) and general corporate purposes.

The divestiture was managed for Remy by Brookwood Associates,
L.L.C. under the direction of Thomas L. Temple. Weber commented,
"I am very pleased with the high degree of competent and
professional transaction management provided by both Tom and his
team at Brookwood.  They were a great resource to Remy over the
past several months."

Headquartered in Anderson, Indiana, Remy International, Inc.,
manufactures, remanufactures, and distributes Delco Remy
brandheavy-duty systems and Remy brand starters and alternators,
diesel engines, locomotive products and hybrid power technology.
The company also provides worldwide components core-exchange
service for automobiles, light trucks, medium and heavy-duty
trucks and other heavy-duty, off-road and industrial
applications.  Remy was formed in 1994 as a partial divestiture
by General Motors Corp. of the former Delco Remy Division, which
traces its roots to Remy Electric, founded in 1896.  Its Latin
American operations are in Brazil and Mexico.

As reported in the Troubled Company Reporter on Dec. 15, 2006,
Moody's Investors Service lowered these ratings of Remy
International,
Inc.:

   -- Corporate Family Rating to Caa3 from Caa1;
   -- Probability of Default Rating to Caa2 from B3;
   -- second priority secured notes to Caa3 from B3;
   -- guaranteed senior unsecured notes to Caa3 from Caa1; and
   -- the guaranteed senior subordinated notes to Ca from Caa2.


SATELITES MEXICANOS: To Receive Non-Binding Bids by March
---------------------------------------------------------
Thomsa Heather -- restructuring advisor of Satelites Mexicanos,
SA de CV, aka Satmex -- told Business News Americas that firms
keen on acquiring the company should make non-binding bids by
the start of March.

BNamericas relates that Satmex emerged from a restructuring
process in December 2006.  Creditors acquired 76.4% of the firm
and the Mexican government owned 23.6%.  Much of the foreign
ownership will be identified as neutral investment and the
government will have 55% of the voting rights.

According to BNamericas, Satmex is considering transfering
ownership to a group led by a fixed satellite service provider
in a process supervised by investment bank Morgan Stanley and
Raul Cisneros Matusita, who was appointed as Satmex's Chief
Executive Officer after the restructuring process ended.

The local press says that nine firms as well as several private
investment funds have expressed interest in owning Satmex.
Among of the interested companies are:

          -- Grupo Medcom,
          -- Pegaso Comunicaciones,
          -- Intelsat,
          -- Echostar,
          -- Eutelsat, and
          -- SES Global.

Mr. Heather told BNamericas, "[Morgan Stanley and management]
have been working diligently in developing and preparing an info
memo targeted for the end of January... the next step will be to
send out invitations to potential strategic buyers."

Published reports and industry analysts estimated the sale price
at US$500 million.

Satelites Mexicanos, SA de CV, provides fixed satellite services
in Mexico.  Satmex provides transponder capacity via its
satellites to customers for distribution of network and cable
television programming, direct-to-home television service, on-
site transmission of live news reports, sporting events and
other video feeds.  Satmex also provides satellite transmission
capacity to telecommunications service providers for public
telephone networks in Mexico and elsewhere and to corporate
customers for their private business networks with data, voice
and video applications.  Satmex also provides the government of
the United Mexican States with approximately 7% of its satellite
capacity for national security and public purposes without
charge, under the terms of the Orbital Concessions.

The Debtor filed for chapter 11 petition on Aug. 11, 2006,
(Bankr. S.D.N.Y. Case No. 06-11868).  Luc A. Despins, Esq., at
Milbank, Tweed Hadley & McCloy LLP represents the Debtor in the
U.S. Bankruptcy proceedings.  Attorneys from Galicia y Robles,
S.C., and Quijano Cortina Lopez y de la Torre give legal advice
in the Debtor's Mexican Bankrutpcy proceedings.  UBS Securities
LLC and Valor Consultores, SA de CV, give financial advice to
the Debtor.  Steven Scheinman, Esq., Michael S. Stamer, Esq.,
and Shuba Satyaprasad, Esq., at Akin Gump Strauss Hauer & Feld
LLP give legal advice to the Ad Hoc Existing Bondholders'
Committee.  Dennis Jenkins, Esq., and George W. Shuster, Jr.,
Esq., at Wilmer Cutler Pickering Hale and Dorr LLP give legal
advice to Ad Hoc Senior Secured Noteholders' Committee.  As of
July 24, 2006, the Debtor has US$905,953,928 in total assets and
US$743,473,721 in total liabilities.

On May 25, 2005, certain holders of Satmex's Existing Bonds and
Senior Secured Notes filed an involuntary chapter 11 petition
against the Company (Bankr. S.D.N.Y. Case No. 05-13862).  On
June 29, 2005, Satmex filed a voluntary petition for a Mexican
reorganization, known as a Concurso Mercantil, which was
assigned to the Second Federal District Court for Civil Matters
for the Federal District in Mexico City.

On Aug. 4, 2005, Satmex filed a petition, pursuant to Section
304 of the Bankruptcy Code that commenced a case ancillary to
the Concurso Proceeding and a motion for injunctive relief that
sought among other things, to enjoin actions against Satmex or
its assets (Bankr. S.D.N.Y. Case No. 05-16103).

Satmex concluded its reorganization efforts on Nov. 30, 2006,
and emerged from its U.S. bankruptcy case.  The company
consummated its U.S. chapter 11 plan of reorganization, which
was confirmed by the United States Bankruptcy Court for the
Southern District of New York by order dated Oct. 26, 2006, and
implemented the restructuring approved in Satmex's Mexican
Concurso Mercantil proceeding by the Concurso Plan Order issued
on July 14, 2006.


* MEXICO: Cantarell's Daily Output Declines by 500,000 Barrels
--------------------------------------------------------------
Figures from the Mexican Energy Ministry showed that daily
production at Cantarell, the country's biggest oil field,
decreased 500,000 million barrels in 2006, The Wall Street
Journal reports.

According to the Journal, Cantarell's daily production decreased
to 1.5 million barrels in December 2006, from 1.99 barrels in
January 2006.

David Shields, an oil industry consultant in Mexico City, who's
been warning about the declining output at Cantarell for the
past two years, commented to the Journal: "This is bad news for
Mexico.  The field is declining faster than even the
government's pessimistic scenarios."

Production decline at Cantarell could mean:

          -- pressure prices on the global oil market,

          -- complicate US efforts to spread its oil imports
             away from the Middle East, and

          -- threaten Mexico's financial stability.

Cantarell was the world's second-biggest oil field in terms of
production in January 2006.

The Journal underscores that Cantarell's production drop is
expected to continue or worsen in 2007.  This would mean that
oil from the world market would decline, while oil demand from
growing economies like China and India are increasing.  Also,
Mexico would have to export lesser oil to the US.  Mexico is one
of the US' three biggest suppliers of oil.

The production decrease at Cantarell would also affect Mexican
President Felipe Calderon, who could be forced to reduce
government spending.  The Mexican leader will also be pressured
to open the nation's energy market to private investors to help
Pemex in finding new oil deposits.  However, it would be hard to
convince Congress -- dominated by the opposition -- to revise
the country's constitution.

The Journal had previously published an internal Pemex study,
which predicted that Cantarell's output would drop to 1.54
million barrels daily by the end of 2006.  However, top Pemex
officials objected to the study, saying that it didn't take into
account maintenance at the field.  Pemex predicted that
Cantarell production would decrease to 1.87 million barrels per
day by December 2006, while its overall output would increase to
3.42 million barrels daily.  Pemex then claimed that it can
offset production decreases at Cantarell with new output from
other fields.

Mr. Shields, the Journal says, expects Cantarell's production to
fall another 600,000 barrels daily by the end of 2007, based on
Pemex's track record at Cantarell, including its current rates
of recovering the oil that remains in the field.

Mexico's overall oil production decreased to below three million
barrels daily in December 2006, from almost 3.4 million barrels
in January 2006.  It is the country's lowest rate of oil output
since 2000, the Journal relates.

Oil exports account for 37% of the Mexican government's revenue.

Mexico's daily average oil exports decreased to 1.79 million
barrels per day in 2006, compared with 1.82 million in 2005,
according to the Journal.

Pemex said it expects exports to decline to an average 1.65
million barrels per day in 2007.

However, December's daily exports were 1.53 million barrels,
which was below Pemex's estimates for 2007, analysts commented
to the Journal.

Pemex will likely boost production by 200,000 barrels daily at
other fields.  Mexico would have a net decline of 400,000
barrels a day by the end of this year and daily exports would be
lower than 1.4 million barrels, Mr. Shields told the Journal.

                        *    *    *

As reported in the Troubled Company Reporter on April 17, 2006,
Standard & Poor's Ratings Services placed an mxBB+ long-term
rating with stable outlook on the state of Mexico.




=================
N I C A R A G U A
=================


* NICARAGUA: Vice President Overseeing Business & Investments
-------------------------------------------------------------
Nicaragua's Vice President Jaime Morales will administer
business, banking and investments in the nation, Prensa Latina
reports.

Prensa Latina relates that the vice president will work on the
collaboration between the Nicaraguan cabinet and foreign
financial entities and advise President Daniel Ortega on
tourism, environment and duty free zones.

Vice President Morales will also lead a delegation to a Central
American forum in Costa Rica to discuss integration and
investment, Prensa Latina notes.  The forum will be sponsored by
that the International Monetary Fund and the World Bank.

Meanwhile, President Ortega told Prensa Latina that he will
check on policies that exacerbated poverty in the nation.

                        *    *    *

Moody's Investor Service assigned these ratings to Nicaragua:

                     Rating     Rating Date
                     ------     -----------
   Long Term          Caa1     June 30, 2003
   Senior Unsecured
   Debt                B3      June 30, 2003




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


SOLO CUP: S&P Holds CCC- Rating on Second-Lien Term Loan
--------------------------------------------------------
Standard & Poor's Ratings Services revised its recovery rating
on Solo Cup Co.'s second-lien term loan to '5' from '4'.  This,
together with the 'CCC-' rating on the second-lien loan,
indicates the agency's expectation that lenders under this
facility would experience negligible (0%-25%) recovery of
principal in a payment default.  The revision was prompted by a
recent US$50 million increase in the second-lien loan to US$130
million.

At the same time, S&P affirmed all its other ratings on Solo,
including the 'CCC+' corporate credit rating.  The outlook
remains negative.

"The ratings on Solo reflect its vulnerable business risk
profile, very high debt leverage, and thin, albeit improved,
liquidity," said Standard & Poor's credit analyst Cynthia
Werneth.

With annual revenues of about US$2.5 billion, Highland Park,
Ill.-based Solo is one of the largest providers of disposable
paper and plastic cups, plates, and cutlery to foodservice
distributors, quick-service restaurants, and retailers in the
U.S. Solo doubled in size in 2004 after acquiring SF Holdings
Group Inc., the parent of Sweetheart Cup Co. Inc. Financing for
the acquisition, mostly debt, included a minority equity stake
from Vestar Capital Partners.  Recently, Vestar gained control
of the company's board of directors because Solo did not meet
targets set forth in the stockholders' agreement.

The US$50 million increase in Solo's second-lien term loan
reduced immediate liquidity concerns and provided some time for
the company to execute its various initiatives to improve
earnings and cash flow and sell assets to reduce debt.  However,
until progress has been made, we remain concerned about Solo's
ability to weather stiff competition or any slowdown in demand,
and absorb any raw material cost increases or other adverse
developments.  As a result, ratings could still be lowered if
progress is not made fast enough to stave off another liquidity
crisis.  However, S&P could revise the outlook to stable or
positive if the company successfully executes its profit
improvement and asset sale plan, significantly reduces debt
leverage, and maintains a comfortable level of liquidity.

Headquartered in Highland Park, Illinois, Solo Cup Company --
http://www.solocup.com/-- manufactures disposable paper and
plastic food and beverage containers used in the foodservice and
retail consumer markets.  Products include cups, lids, straws,
napkins, cutlery, and plates.  The Company was established in
1936 and has a global presence with facilities in Asia, Canada,
Europe, Mexico, Panama and the United States.




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


* PRIDE INT'L: To Pay Back Taxes of US$32.5 Million to Seniat
-------------------------------------------------------------
Venezuelan tax authority, Integrated National Customs and Tax
Administration Service or Seniat, objected to the 2002 tax
filings of Pride International, a US oilfield-services major,
reports say.

Seniat questioned Pride's costs, expenses and losses for
previous years for the amount of VEB70.2 billion or US$32.5
million.  Other smaller oilfield services have also been
presented with similar objections.

According to El Universal, the action taken by Seniat is part of
the "Plan Zero Evasion."

Pride officials did not comment on this claim by the internal
revenue service.

                  About Pride International

Headquartered in Houston, Texas, Pride International, Inc. --
http://www.prideinternational.com/-- is a drilling contractor.
The Company provides onshore and offshore drilling and related
services in more than 25 countries, operating a diverse fleet of
278 rigs, including two ultra-deepwater drillships, 12
semi submersible rigs, 28 jackup rigs, 18 tender-assisted, barge
and platform rigs, and 218 land rigs.  Pride also provides a
variety of oilfield services to customers in Argentina,
Venezuela, Bolivia and Peru.

                        *    *    *

As reported in the Troubled Company Reporter on Sept. 15, 2006,
Standard & Poor's Ratings Services affirmed its 'BB' corporate
credit rating on contract driller Pride International Inc. and
removed the rating from CreditWatch with negative implications.
The outlook is stable.  As of June 30, 2006, Houston, Texas-
based Pride had US$1.01 billion in adjusted debt.

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


* PERU: Perupetro Secured US$690 Mil. from 16 Contracts in 2006
---------------------------------------------------------------
Peruvian hydrocarbons promotion agency Perupetro has secured for
the government PEN2.21 billion or US$690 million from
hydrocarbons production and has signed 16 contracts in 2006, the
energy and mines ministry disclosed in a statement.  In 2005,
the agency obtained 15 contracts.

According to the ministry, the most important contract was with
Barret Resources' Peruvian unit for the development of block 67,
BNamericas relates.  The company intends to pour in about US$1
bilion in investments for the block's development and
production, which is expected to start in 2010.

The projected output from block 67 is about 100,000 barrels per
day at its peak, which will make Peru to become a net oil
exporter, BNamericas says.

                        *    *    *

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


DORAL FIN'L: Pays Cash Dividend on 4 Series of Preferred Stock
--------------------------------------------------------------
Doral Financial Corp. disclosed that, on Jan. 31, 2007, it paid
the regular monthly cash dividend on the company's:

   -- 7% Noncumulative Monthly Income Preferred Stock, Series A,
      in the amount of US$0.2917 per share;

   -- 8.35% Noncumulative Monthly Income Preferred Stock,
      Series B, in the amount of US$0.173958 per share; and

   -- 7.25% Noncumulative Monthly Income Preferred Stock,
      Series C, in the amount of US$0.151042 per share.

The dividend on each of the series was paid to the record
holders as of the close of business on Jan. 29, 2007, in the
case of the Series A Preferred Stock, and to the record holders
as of the close of business on Jan. 15, 2007, in the case of
Series B and Series C Preferred Stock.

Doral also announced that the quarterly dividend on the
company's 4.75% perpetual cumulative convertible preferred
stock, in the amount of US$2.96875 per share, which was approved
by the Board of Directors on Jan. 30, 2007, will be paid on
March 15, 2007 to holders of record as of the close of business
on March 1, 2007.

Based in New York City, Doral Financial Corp. (NYSE: DRL) --
http://www.doralfinancial.com/-- is a diversified financial
services company engaged in mortgage banking, banking,
investment banking activities, institutional securities and
insurance agency operations.  Its activities are principally
conducted in Puerto Rico and in the New York City metropolitan
area.  Doral is the parent company of Doral Bank, a Puerto Rico
based commercial bank, Doral Securities, a Puerto Rico based
investment banking and institutional brokerage firm, Doral
Insurance Agency Inc. and Doral Bank FSB, a federal savings bank
based in New York City.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Jan. 8, 2007, Moody's Investors Service downgraded to B2 from B1
the senior debt ratings of Doral Financial Corp.  Moody's said
the ratings are on review for possible downgrade.

Downgrades:

Issuer: Doral Financial Corp.

   -- Senior Unsecured Regular Bond/Debenture, Downgraded
      to B2 from B1.

Outlook Actions:

Issuer: Doral Financial Corp.

   -- Outlook, Changed To Rating Under Review From Negative.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Jan. 8, 2007, Standard & Poor's Ratings Services lowered its
long-term ratings on Doral Financial Corp., including the
counterparty credit rating, to 'B' from 'B+'.

S&P said the outlook remains negative.


FIRSTBANK PUERTO RICO: Scotiabank To Buy Bank, Analyst Says
-----------------------------------------------------------
Canada's Bank of Nova Scotia or Scotiabank has reportedly made a
written offer to purchase Firstbank of Puerto Rico, analyst
Jason Bilodeau said, citing Caribbean Business.

Puerto Rico's banking sector is ripe for consolidation due to a
sluggish loan market, the National Post says, citing Mr.
Bilodeau.  The analyst estimates that First Bancorp --
Firstbank's parent -- has a market value of about US$770
million.

Frank Switzer, Scotiabank's director of public affairs, told the
National Post, that the bank does not comment on speculations.

Scotiabank has 20 branches in Puerto Rico and holds a 3% market
share, Business News Americas says.  A Firstbank purchase would
add 139 branches to Scotiabank, making it one of the three
largest lenders in Puerto Rico.

FirstBank Puerto Rico, headquartered in San Juan, Puerto Rico,
reported total assets of roughly US$19 billion at year-end 2005.

As reported in the Troubled Company Reporter-Latin America on
June 30, 2006, Moody's Investors Service confirmed the ratings
of FirstBank Puerto Rico at Ba1 for deposits.  The bank's D+
rating for financial strength was also confirmed.  Moody's
placed the ratings' outlook at negative.


NEWCOMM WIRELESS: Committee Seeks to Retain Foley as Counsel
-----------------------------------------------------------
The Official Committee of Unsecured Creditors of Newcomm
Wireless Services, Inc., has asked the U.S. Bankruptcy Court for
the District of Puerto Rico to authorize the retention of Foley
& Lardner LLP as its counsel, nunc pro tunc to Dec. 11, 2006.

The Committee members are:

         -- Magnetiks International, Inc.,
         -- TLD de Puerto Rico, Inc.,
         -- Caribbean American Property Insurance Co.,
         -- Syniverse Technologies, Inc., and
         -- Munoz Metro Office.

Foley & Lardner will:

           a. advise the Committee with respect to its rights,
              powers and duties;

           b. advise the Committee in its consultations with the
              Debtor relative to the administration of this
              chapter 11 case;

           c. advise the Committee in analyzing the claims of
              the Newcomm Wireless' creditors and in negotiating
              with the creditors;

           d. advise the Committee with respect to its
              investigation of the acts, conduct, assets,
              liabilities, and financial condition of Newcomm
              Wireless and its lenders, the operation of the
              Debtor's business and the desirability of the
              continuance of the business, and any other matters
              relevant to the Chapter 11 case or to the
              formation of a plan of reorganization;

           e. advise the Committee with respect to the
              contemplated sale of the Debtor's assets, plans
              for upgrading the Debtor's telecommunications
              network, and payments to the Federal
              Communications Commission;

           f. assist the Committee in its analysis of, and
              negotiations with, the Debtor or any third party
              concerning matters related to, among other things,
              DIP financing to be obtained in this case and the
              terms of a Chapter 11 plan for the Debtor;

           g. assist and advise the Committee with respect to
              its communications with the general creditor body
              regarding significant matters in the case;

           h. represent the Committee in any litigation that may
              be necessary, and at hearings and other
              proceedings;

           i. review and analyze all applications, orders,
              statements of operations, and schedules filed with
              the Court and advise the Committee as to their
              propriety;

           j. assist the Committee in preparing pleadings and
              applications as may be necessary in furtherance of
              the Committee's interests and objections; and

           k. perform other legal services as may be required
              and are deemed to be in the interests of the
              Committee in line with the Committee's powers and
              duties as set forth in the Bankruptcy Code.

Michael P. Richman, Esq., a partner at Foley, assures the Court
of his firm's disinterestedness as that term is defined in
Section 101(14) of the Bankruptcy Code.

Mr. Richman also discloses the firm's professionals' hourly
billing rate:

         Professional            Hourly Rate

         Richman, Michael P.      US$697.50
         Wolfson, Mark J.         US$450.00
         DiCastri, Frank W.       US$410.00
         Vaughan, Lori V.         US$410.00
         Reck, Kevin A.           US$370.00
         Chiappetta, Darren S.    US$275.00
         Valiente, Lauren L.      US$260.00
         Walker, Lisa (paralegal) US$170.00

Foley & Lardner LLP can be reached at:

          Attention: Michael P. Richman
          Mark J. Wolfson
          Lori V. Vaughan
          W. Keith Fendrick
          90 Park Avenue
          New York, NY 10016
          USA
          Phone: (212) 682-7474
          Fax: (212) 687-2329
          E-mail: mrichman@foley.com
                  mwolfson@foley.com
                  lvaughan@foley.com
                  wfendrick@foley.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.


PILGRIM'S PRIDE: Declares 2-1/4 Per Share Quarterly Dividend
------------------------------------------------------------
Pilgrim's Pride Corp.'s board of directors has declared a
quarterly dividend of 2-1/4 cents per share.  The quarterly
dividend is payable on March 30, 2007, to shareholders of record
at the close of business on March 16, 2007.

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

                        *     *     *

As reported in the Troubled Company Reporter on Jan. 18, 2007,
Moody's Investors Service downgraded the senior unsecured credit
rating for Pilgrim's Pride Corp. to B1 from Ba3, its senior
subordinated notes to B2 from B1, and its corporate family
ratings to Ba3 from Ba2.  Moody's also assigned a B1 rating to
PPC's planned new US$250 million senior unsecured notes and a B2
to its new US$200 million senior subordinated notes.  The
outlook on all ratings is stable.

Standard & Poor's Ratings Services reported that the corporate
credit rating on the largest U.S. poultry processor, Pilgrim's
Pride Corp., was lowered to 'BB-' from 'BB'.


PILGRIM'S PRIDE: Incurs US$8.7MM Net Loss in Qtr. Ended Dec. 30
---------------------------------------------------------------
Pilgrim's Pride Corp. reported a net loss of US$8.7 million on
total sales of US$1.34 billion for the first quarter ended
Dec. 30, 2006.  For the first quarter of fiscal 2006, the
company reported net income of US$25.7 million on total sales of
US$1.34 billion.

"Our financial results for the first quarter of fiscal 2007
reflect the continued operating challenges facing the U.S.
chicken industry," said O.B. Goolsby, Jr., Pilgrim's Pride
president and chief executive officer.  "Sharp increases in
feed-ingredient costs, driven largely by surging demand for
corn-based ethanol, represent the most significant threat to our
business at this time.  Ultimately these higher costs will be
passed on to consumers in the form of higher prices for chicken
products.  While market pricing for U.S. chicken products has
shown some improvement recently, thanks in part to industry-wide
production cutbacks, it simply is not where it needs to be to
offset these cost increases for corn and soybean meal."

"Now more than ever, it is important for us to execute on our
strategic plan and seize opportunities to build our business,
whether by adjusting our product mix, strengthening our brand
identity with consumers, or shortening the time it takes to
bring new products to market.  We are confident that our
continued focus on higher-margin prepared foods products,
coupled with industry-wide production cutbacks, will help return
us to normalized profitability when markets improve," he added.

On Dec. 27, 2006, Pilgrim's Pride acquired Gold Kist Inc.,
creating the world's leading chicken company in terms of
production and the fourth-largest U.S. meat protein company by
revenues.

"We are now ready to begin realizing the compelling strategic
value and benefits we envisioned from this acquisition.  The
integration is off to a good start.  We have appointed more than
a dozen integration teams composed of employees from Pilgrim's
Pride and the former Gold Kist to drill down into every area of
the business looking for opportunities to improve the way we
operate and eliminate unnecessary costs. They are making good
progress and we now believe that our synergy savings will be in
the range of US$100 million, an increase from our original
estimate of US$50 million last fall when we commenced the tender
offer process and only had access to publicly available
information," Mr. Goolsby said.

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

                        *     *     *

As reported in the Troubled Company Reporter on Jan. 18, 2007,
Moody's Investors Service downgraded the senior unsecured credit
rating for Pilgrim's Pride Corp. to B1 from Ba3, its senior
subordinated notes to B2 from B1, and its corporate family
ratings to Ba3 from Ba2.  Moody's also assigned a B1 rating to
PPC's planned new US$250 million senior unsecured notes and a B2
to its new US$200 million senior subordinated notes.  The
outlook on all ratings is stable.

Standard & Poor's Ratings Services reported that the corporate
credit rating on the largest U.S. poultry processor, Pilgrim's
Pride Corp., was lowered to 'BB-' from 'BB'.


SUNCOM WIRELESS: Reaches Consensual Agreement with Bondholders
--------------------------------------------------------------
SunCom Wireless Holdings Inc., in a move intended to reduce its
debt by approximately US$679.3 million and annual interest
payments by approximately US$62 million, reported that the
company and its subsidiaries have reached a consensual agreement
with bondholders who hold or beneficially own more than 91% of
the outstanding 9-3/8% Senior Subordinated Notes due 2011 and 8-
3/4% Senior Subordinated Notes due 2011 of its indirect, wholly
owned subsidiary, SunCom Wireless Inc., to exchange their Notes
for approximately 87% of SunCom Wireless Holdings' common stock.
The exchange will provide the company greater financial
flexibility.  Completion of the exchange, which was unanimously
approved by the SunCom Wireless Holdings board of directors, is
expected in the second quarter of 2007, subject to approval by
SunCom Wireless Holdings shareholders, regulatory approval and
other customary closing conditions.

SunCom Wireless Holdings said that its Board of Directors will
pursue strategic alternatives, including the potential sale of
substantially all of its business, and has engaged Goldman,
Sachs & Co. as its strategic advisor, for the purpose of
maximizing the company's value to its stockholders.

Michael E. Kalogris, chairman and chief executive officer of
SunCom Wireless Holdings, said, "While SunCom Wireless occupies
a strong, growing and highly competitive position in the
Southeastern portion of the United States, Puerto Rico and the
U.S. Virgin Islands, the company's debt load poses a challenge.
We are, therefore, pleased that our bondholders have worked with
us to reach this agreement.  The proposed debt-for-equity
exchange will provide SunCom stability and financial flexibility
to pursue its business strategy.  Our Board considered many
options and this agreement represents, in our opinion and that
of our independent advisors, the best solution for our
shareholders while enabling SunCom the opportunity to continue
to provide our customers the very best wireless service
possible.

"The debt reduction will strengthen the company for the benefit
of our one million loyal customers and our thousands of
dedicated employees.  Additionally, the Board's decision to
pursue strategic alternatives, including a potential sale
transaction, has the potential to maximize the value of the
company for shareholders," added Mr. Kalogris.

Under the terms of the Exchange Agreement, SunCom Wireless
Holdings will contribute newly issued shares representing
approximately 87% of its Class A Common Stock (after giving
effect to the conversion of outstanding Class B Common Stock) to
SunCom Wireless Investment Company LLC, a wholly owned
subsidiary of SunCom Wireless Holdings, which will then exchange
that shares in a private placement for the Notes held or
beneficially owned by the participating bondholders.  Following
completion of the transaction, current SunCom Wireless
stockholders will hold approximately 13% of the Class A Common
Stock.

Prior to the exchange, the company will effect a merger
transaction with one of its wholly owned subsidiaries whereby
each outstanding share of its Class A Common Stock will be
converted into 0.1 share of Class A Common Stock for the
purpose, among others, of implementing a 1-for-10 reverse stock
split.

Following completion of the exchange, a new ten-member SunCom
Wireless Holdings Board of directors will be constituted.  Mr.
Kalogris will continue as chairman of the board, as well as
chief executive officer, and Scott Anderson, chairman of the
audit committee, will remain in that position on the Board.  The
other eight directors will initially be designated by various
participating bondholders.

Additionally, the SunCom Wireless senior management team will
remain in place.

Based in Berwyn, Pennsylvania, SunCom Wireless Holdings Inc.
(NYSE: TPC) (OTC: SWSH.OB) -- http://www.suncom.com/-- offers
digital wireless communications services to more than one
million subscribers in the southeastern United States, Puerto
Rico and the U.S. Virgin Islands.  SunCom is committed to
delivering Truth in Wireless by treating customers with respect,
offering simple, straightforward plans and by providing access
to the largest GSM network and the latest technology choices.

SunCom Wireless' balance sheet showed a stockholders' deficit of
US$378,099,000 at Sept. 30, 2006, compared with a deficit of
US$338,223,000 at June 30, 2006.




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


HILTON HOTELS: Reports Strong Results for Quarter Ended Dec. 31
---------------------------------------------------------------
Hilton Hotels Corp. reported financial results for the fourth
quarter and fiscal year ended Dec. 31, 2006.  Fourth quarter
highlights compared with fourth quarter 2005 are as follows:

   * Diluted EPS of US$0.50 vs. US$0.26 in 2005, an increase of
     92%;

   * Total company Adjusted EBITDA of US$485 million, up 78%;

   * Pro forma worldwide comparable owned RevPAR increased 10.7%
     driven by strong rate increases and high demand in most
     major markets.  Pro forma worldwide comparable owned
     margins improved 90 basis points;

   * Fees up 60% to US$182 million on strong RevPAR and unit
     growth, the favorable impact of the Hilton International
     acquisition and a one-time termination fee; and

   * Timeshare profitability up 11%.

Hilton reported fourth quarter 2006 net income of US$207 million
compared with US$105 million in the 2005 quarter.  Diluted net
income per share was US$0.50 in the 2006 fourth quarter, versus
US$0.26 in the 2005 period.

In total, non-recurring items benefited the 2006 quarter by
approximately US$.11 per share as follows:

   * US$11 million pre-tax benefit (US$.02 per share) from
     contract termination fees related to the sale of a
     joint-venture hotel;

   * US$14 million pre-tax gain (US$.02 per share) on foreign
     currency transactions;

   * US$6 million benefit (US$.01 per share) to the tax
     provision related to a prior year's tax return;

   * US$36 million pre-tax gain (US$.06 per share) on asset
     sales and other items, including a US$22 million pre-tax
     gain from the sale of a joint-venture hotel in which the
     company had a minority interest.

Additionally, fourth quarter results included a revision to the
full year effective tax rate primarily due to higher than
expected utilization of foreign tax credits against the
company's U.S. income tax liability.  This revision benefited
fourth quarter results by US$31 million or US$0.07 per share.
In the 2005 fourth quarter, non-recurring items benefited
results by US$0.04 per share.

The company reported fourth quarter 2006 total operating income
of US$358 million (an 85% increase from the 2005 quarter,) on
total revenue of US$2.232 billion (a 106% increase from US$1.083
billion in the 2005 quarter.)  Total company earnings before
interest, taxes, depreciation and amortization (Adjusted EBITDA)
were US$485 million, an increase of 78% from US$273 million in
the 2005 quarter.

         System-wide RevPAR; Management/Franchise Fees

All of the company's brands reported significant system-wide
revenue-per-available-room increases, with particularly strong
gains in average daily rate.  On a system-wide basis (including
owned, leased, managed and franchised properties) and pro forma
as if the acquisition of Hilton International had occurred
Jan. 1, 2005, the company's brands showed fourth quarter RevPAR
gains as follows:

   -- Scandic, 18.1%;
   -- Conrad, 15.8%;
   -- Hilton, 12.2%;
   -- Embassy Suites, 9.9%;
   -- Doubletree, 9.7%;
   -- Hampton, 9.0%;
   -- Hilton Garden Inn, 8.1%; and
   -- Homewood Suites by Hilton, 6.9%.

Management and franchise fees increased 60% in the fourth
quarter to US$182 million, benefiting from RevPAR gains, the
addition of new units, and the acquisition of HI.  Fees in the
quarter also include a one-time US$11 million management
contract termination fee related to a joint-venture hotel.  The
property was sold and converted to a franchised hotel during the
quarter.

                    Owned Hotel Results

Continued strong demand trends and pricing power resulted in
high single digit or double digit ADR increases at many of the
company's gateway hotels around the world.  Business transient,
group and leisure segments each showed significant ADR
improvement.

Across all brands, revenue from the company's owned hotels
(majority owned and controlled hotels) was US$683 million in the
fourth quarter 2006, a 39% increase from US$490 million in the
2005 quarter.  Total owned hotel expenses were up 34% in the
quarter to US$459 million.

Comparable North America owned revenue and expenses increased
10.7% and 9.2%, respectively.  Expenses were impacted by higher
insurance and marketing costs.

RevPAR from comparable N.A. owned hotels increased 10.2% (91%
rate driven.)  Comparable N.A. owned hotel occupancy increased
0.7 points to 76.3%, while ADR increased 9.2% to US$220.77.
Particularly strong RevPAR growth was reported at the company's
owned hotels in Chicago, New York, San Francisco and Phoenix.
Results also benefited from higher food and beverage revenue and
profits in the quarter.  Comparable N.A. owned hotel margins in
the fourth quarter increased 90 basis points to 33.4%.  The
aforementioned higher insurance and marketing costs impacted
margins by approximately 120 basis points. Renovation activity
at the Waldorf-Astoria, Hilton New York and Hilton Hawaiian
Village did not significantly impact results during the fourth
quarter.

On a pro forma basis, as if the acquisition of HI had occurred
Jan. 1, 2005, comparable international owned revenue and
expenses increased 9.7% and 8.7%, respectively.  Pro forma
RevPAR from international comparable owned hotels increased
12.8% (92% rate driven.)  Occupancy increased 0.7 points to
68.9%, while ADR increased 11.7% to US$147.34. Strong results
were reported in Barcelona, Brussels, Sao Paulo and Zurich.
Excluding the impact of foreign exchange, RevPAR from
international comparable owned hotels increased 6.0%. Pro forma
comparable international owned margins improved 70 basis points
to 26.5%.

On a worldwide basis, pro forma comparable owned RevPAR
increased 10.7% (91% rate driven,) with margins increasing 90
basis points to 31.8%.  Excluding the impact of foreign
exchange, worldwide pro forma comparable owned RevPAR increased
9.2%.

                       Leased Hotels

Revenue from leased hotels was US$731 million in the fourth
quarter 2006 compared with US$24 million in the 2005 quarter,
while leased hotel expenses were US$605 million in the current
quarter versus US$22 million last year.  The EBITDAR-to-rent
coverage ratio was 1.9 times in the quarter.

Pro forma comparable leased revenue increased 14.0%, leased
expenses increased 11.6% and margins increased 170 basis points
to 17.0%.  RevPAR from comparable leased properties increased
17.4%.  Excluding the impact of foreign exchange, RevPAR from
comparable leased hotels increased 9.9%.  Strong results were
reported at the company's leased hotels in London, Amsterdam,
Paris, and across Germany and the Nordic region.

                   Hilton Grand Vacations

Hilton Grand Vacations Company or HGVC, the company's vacation
ownership business, reported an 11% increase in profitability in
the fourth quarter of 2006 compared with 2005, due primarily to
increased financing income.  Although average unit sales prices
increased 15% and unit sales increased 8%, percentage-of-
completion accounting negatively impacted the reported results.

HGVC had fourth quarter revenue of US$142 million, a 9% increase
from US$130 million in the 2005 quarter.  Expenses were US$121
million in the fourth quarter, compared with US$111 million in
the 2005 period.

               Brand Development/Unit Growth

In the fourth quarter, the company added 59 properties and 9,040
rooms to its system as:

   -- Hilton Garden Inn, 18 hotels and 2,616 rooms;
   -- Hampton Inn, 21 hotels and 1,980 rooms;
   -- Embassy Suites, 5 hotels and 1,384 suites;
   -- Hilton, 4 hotels and 1,136 rooms;
   -- Homewood Suites by Hilton, 8 hotels and 885 suites;
   -- Doubletree, 2 hotels and 438 rooms; and
   -- other, 1 hotel and 601 rooms.

Nineteen properties and 4,066 rooms were removed from the system
during the quarter.

During the fourth quarter, the company added new full-service
hotels in Boston, Chicago, Mexico City, Tampa, Honolulu, Kauai,
and Manchester, U.K.  The company also added the Qasr Al Sharq
in Jeddah, Saudi Arabia to the Waldorf=Astoria Collection. In
addition, the company opened new Hilton Garden Inns in Florence
and Rome, Italy.

During the quarter, the company announced plans to form a joint
venture with DLF Limited to develop hotel properties and
serviced apartments in India.  The joint-venture company plans
to develop and own 50-75 midscale and extended-stay hotels over
the next seven years.  The company also announced an agreement
to develop and franchise an initial 25 Hilton Garden Inns in
Beijing, Shanghai and Tianjin, China to Deutsche Asset
Management and HQ Asia Pacific.  The company also announced that
it has signed a management agreement for a new Conrad in Koh
Samui, Thailand scheduled to open in 2008.

At Dec. 31, 2006, the Hilton worldwide system consisted of 2,935
properties and 501,478 rooms.  The company's current development
pipeline is its biggest yet, and the largest for any U.S.-based
hotel company, with more than 775 hotels and 110,000 rooms at
Dec. 31, 2006.  Approximately 90% of the hotels in the current
development pipeline are in the Americas (U.S., Canada, Mexico
and South America,) though international development is expected
to comprise an increasingly larger%age of the company's
development pipeline over the next few years.

                    Asset Dispositions

Hilton noted that the sale processes continue for the Scandic
portfolio, 10 hotels in Continental Europe, the Hilton
Caledonian in Scotland, and six properties in the U.S. First or
second round bids have been received for 14 of the 17 properties
for sale and Scandic.

As previously announced, during the fourth quarter the company
completed the sale of two hotels located in the U.K., the 1,054-
room Hilton London Metropole and the 794-room Hilton Birmingham
Metropole, for GBP417 million.

                      Corporate Finance

At Dec. 31, 2006, Hilton had total debt of US$6.97 billion
(net of approximately US$500 million of debt and capital lease
obligations resulting from the consolidation of certain joint-
venture entities and a managed hotel, which are non-recourse to
Hilton,) a reduction of approximately US$860 million from
Sept. 30, 2006.  Of the US$6.97 billion, approximately 53% is
floating rate debt.  Total cash and equivalents (including
restricted cash of approximately US$293 million) were
approximately US$420 million at Dec. 31, 2006.

The company's average basic and diluted share counts for the
fourth quarter were 387 million and 422 million, respectively.
Hilton's debt currently has an average life of 6.1 years, at an
average cost of approximately 6.6%.

Hilton's effective tax rate in the fourth quarter 2006 was
22.5%.  As previously noted, the fourth quarter effective tax
rate benefited from a higher than expected utilization of full-
year 2006 foreign tax credits and a non-recurring item related
to the prior year's tax return.

Total capital expenditures in the fourth quarter were
approximately US$300 million, including US$40 million for
timeshare development.

                     Full-Year Results

For full-year 2006, Hilton reported net income of US$572
million, compared with US$460 million in 2005.  Diluted net
income per share was US$1.39 versus US$1.13 in 2005.  Non-
recurring items benefited the 2006 full-year period by US$.18
per share, versus US$.28 per share in 2005.  On a recurring
basis (including the full year impact of a lower effective tax
rate due to higher than expected utilization of foreign tax
credits,) EPS was US$1.21 versus US$.85 in 2005, an increase of
42%.  Total company operating income was US$1.274 billion in
2006 (compared with US$805 million in 2005) on revenue of
US$8.162 billion (compared with US$4.437 billion in 2005.)
Total company Adjusted EBITDA was US$1.742 billion, a 53%
increase from US$1.140 billion in 2005.  Management and
franchise fees were US$684 million, a 51% increase from US$452
million in 2005.  Timeshare profitability was up 19% versus
2005.  The company added 223 hotels and 35,970 rooms in 2006.

                        2007 Outlook

The 2007 guidance includes incremental operating and corporate
costs associated with international growth and development
activities and technology initiatives.  The guidance also
includes cost increases related to stock compensation, including
incremental costs from extending the company's equity
compensation plans to international employees.  The 2007
effective tax rate guidance assumes full utilization of
available foreign tax credits.

As previously communicated, 2007 diluted EPS guidance includes
these two items which combine to adversely impact diluted EPS
growth by a total of US$.14 per share:

   * The company's timeshare business is expected to be
     negatively impacted, from a reporting standpoint, by
     percentage-of-completion accounting associated with new
     projects.  The net change attributable to
     percentage-of-completion accounting between 2006 and 2007
     is expected to total approximately US$60 million pre-tax,
     or US$.09 per share.  The company expects the impact of
     percentage-of-completion accounting on 2007 results to
     reverse in 2008.

   * Reported earnings growth in 2007 is expected to be impacted
     by the timing of the HI acquisition. Results in 2006
     include HI from the Feb. 23, 2006 acquisition date.  Had
     the acquisition been completed on Jan. 1, 2006, expected
     full-year 2006 results would have been reduced by
     approximately US$.05 per share.  During the period Jan. 1
     to Feb. 23, 2006 HI's pro forma fixed costs significantly
     exceeded its operating performance due to the seasonally
     weak business environment of the period.

Total capital spending in 2007 is expected to be approximately
US$985 million as:

   -- approximately US$320 million for routine improvements and
      technology,

   -- approximately US$315 million for timeshare projects and

   -- approximately US$350 million for hotel renovation, special
      projects, and hotel investments.

To the extent the company completes additional asset sales,
capital expenditures would be expected to decrease.

The company expects to add approximately 255 hotels and 35,000
rooms to its system in 2007.

Stephen F. Bollenbach, co-chairman and chief executive officer
of Hilton Hotels Corporation, said, "A historic and successful
year that began with our acquisition of Hilton International
ended with another strong quarter, highlighted by excellent
RevPAR growth both domestically and internationally, and
significant progress in introducing our brands to new markets
around the world.  We are particularly excited about the
agreements we signed with respected partners to develop Hilton
Garden Inns and other Hilton Family brands in India and China.
These agreements lay the foundation for our global growth going
forward.

"With our market leading presence in such robust markets as New
York City, Chicago, Hawaii and London; a domestic and
international development pipeline that guarantees rapid growth,
and strong demand for our timeshare properties, the elements are
in place for continued solid operating results in 2007."

Mr. Bollenbach concluded, "We expect that the operational,
development, marketing and financial plans we have in place for
2007 will further enhance our industry-leading position."

Headquartered in Beverly Hills, California, Hilton Hotels Corp.
-- http://www.hilton.com/-- together with its subsidiaries,
engages in the ownership, management, and development of hotels,
resorts, and timeshare properties, as well as in the franchising
of lodging properties in the United States and internationally,
including Barbados, Costa Rica and Trinidad and Tobago in Latin
America.

                        *    *    *

Moody's Investors Service confirmed its Ba2 Corporate Family
Rating for Hilton Hotels Corp. in connection with its
implementation of its new Probability-of-Default and Loss-Given-
Default rating methodology for the gaming, lodging and leisure
sectors.

Additionally, Moody's revised and held its probability-of-
default ratings and assigned loss-given-default ratings on these
loans and bond debt obligations:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default

   Senior Notes
   with an average
   rate of 8.1%
   due 2007 - 2031       Ba2      Ba2      LGD4       53%

   Chilean inflation
   indexed note
   effective rate
   7.65% due 2009        Ba2      Ba2      LGD4       53%

   3.375%
   Contingently
   convertible
   senior notes
   due 2023              Ba2      Ba2      LGD4       53%

   Minimum Leases
   Commitments           Ba2      Ba2      LGD4       53%

   Term Loan A
   at adjustable
   rates due 2011        Ba2      Ba2      LGD4       53%

   Term Loan B
   at adjustable
   rates due 2013        Ba2      Ba2      LGD4       53%

   Revolving loans
   at adjustable
   rates, due 2011       Ba2      Ba2      LGD4       53%

   Senior unsecured
   debt shelf            Ba2      Ba2      LGD4       53%

   Subordinate debt
   Shelf                 Ba3      B1       LGD6       97%

   Preferred             B1       B1       LGD6       97%


HILTON HOTELS: Fitch Upgrades Debt Ratings to BB+ from BB
---------------------------------------------------------
Fitch Ratings upgraded the debt ratings for Hilton Hotels
Corporation as:

   -- Issuer Default Rating to 'BB+' from 'BB';
   -- Senior credit facility to 'BB+' from 'BB'; and
   -- Senior notes to 'BB+' from 'BB';

The ratings apply to its US$5.75 billion credit facility and
roughly US$2.6 billion of its senior notes.  Fitch has also
revised Hilton Hotel's Rating Outlook to Positive from Stable.

The ratings upgrade reflects Hilton's indicated and demonstrated
commitment to delever following the acquisition of the Hilton
International or HI assets in February 2006.  Fueled by roughly
US$1.5 billion of asset sales since the closing of the
transaction through the end of 2006, Hilton Hotels improved its
adjusted leverage ratio (per the company's bank facility) from
5.0 times at March 31, 2006, to an estimated 4.2 as of
Dec. 31, 2006.  At the same time, adjusted coverage increased
from 3.0 as of March 31, 2006 to an estimated 3.3x as of
Dec. 31, 2006.

The pace of asset sales since the acquisition has been faster
than Fitch anticipated following the transaction and Hilton
retained long-term management/franchise agreements on most of
the properties.  While the current credit metrics remain
somewhat weak for the rating category, Fitch expects further
deleveraging in 2007 driven by additional asset sales in a
vibrant lodging asset demand environment and a continued strong
operating environment.  These factors are incorporated into
Hilton's Positive Rating Outlook.

Asset Sales Could Accelerate Deleveraging:

Adjusted leverage could decline to less than 4.0 by the end of
2007 with no asset sales, but Fitch expects that improvement
could be accelerated given the current demand environment for
lodging assets primarily by real estate investment trusts and
private equity firms.

In the latest example of numerous transactions over the past 12-
24 months, CNL Hotels & Resorts Inc. announced on Jan. 19 that
it had agreed to be acquired by Morgan Stanley's Real Estate
Group for US$6.6 billion with Ashford Hospitality Trust Inc.
acquiring some of the assets as part of the transaction.
Furthermore, European hotel asset demand could be bolstered by
the introduction of REITs this year in the UK and possibly
Germany.

Hilton currently has the Scandic brand for sale, which includes
roughly 130 hotels and 23,000 rooms and accounted for roughly
45% of proforma 2006 leased profit.  Also currently for sale are
17 owned hotels or 6,500 rooms, which accounted for roughly 15%
of proforma 2006 owned profits.   An additional 30 owned hotels
10,000 rooms accounting for roughly 25% of proforma 2006 owned
profits could be put on the market down the road, roughly half
of which could be sold in the next one-to-three years.  Fitch
believes the negotiations for the sale of Scandic are
progressing very well and believes a transaction could be
completed possibly by first quarter-2007, but more likely by the
end of 2Q'07.  First or second round bids have been received for
14 of the 17 properties for sale and Scandic.  Furthermore,
Hilton is required to pay down some of its credit facility when
certain assets are sold.

Strong Industry Operating Environment Continues to Provide
Tailwinds:

The lodging industry is poised to benefit from continued
positive fundamentals with strong demand and limited supply
growth of less than 2% in 2007.  While Fitch expects the overall
economy to continue to slow in 2007, the outlook for the
business sector remains healthier than that of the consumer
sector, which bodes well for the lodging companies since their
operating environment is more sensitive to the business economy.

Industrywide RevPAR gains are expected to continue in the mid-
to-high single-digit range over the next two-to-three years,
below the low double-digit gains in 2006 but very solid
nonetheless.  The RevPAR gains are likely to be driven by rate
rather than occupancy in 2007, which should drive stronger
margins since rate-driven RevPAR gains don't carry the
additional operating costs of occupancy-driven RevPAR gains.

On its 4Q'06 earnings release, Hilton raised its 2007 RevPAR
growth assumptions indicating the operating environment remains
robust.  In 2007, Hilton projects the strong supply/demand
environment to drive 14-16% growth in its management/franchise
fees and RevPAR growth of 9-11% with margins increasing 125-175
basis points.  Its leased portfolio is expected to show slightly
slower RevPAR growth of 8-10% with margins increasing 30-70
basis points in 2007.

Off-Balance Sheet Debt Exposure:

Following the HI acquisition, Hilton increased its exposure to
the leased hotel segment and as a result gained a significant
amount of off-balance sheet debt and non-recourse, on-balance
sheet debt primarily in the form of leases. Fitch believes that
many of the leases will be sold with the Scandic brand in the
next few months.  Furthermore, Hilton reports nearly $300
million in operating leases in its financial statements, which
equates to roughly US$2.4 billion of adjusted debt (using
Fitch's standard of 8x.)  However, the actual exposure is likely
much lower than that, as Hilton and its banks have agreed to a
lower lease adjustment in its adjusted leverage calculations.

Management Track Record:

Also incorporated into the rating upgrade and Positive Outlook
is management's track record of executing on a plan to get back
to investment grade.  Following the travel disruptions brought
on by the events of Sept. 11, 2001, Fitch downgraded Hilton's
credit ratings in 2002 to below investment grade.

Hilton subsequently suspended its share repurchase program and
focused on reducing debt and improving the credit profile, which
resulted in an upgrade to investment grade in 2004 as the travel
environment recovered.  Following the HI transaction last year,
management again suspended share repurchase activity and
dividend increases and has indicated a target adjusted leverage
ratio of 3.5.

Fitch believes that Hilton will restart its share repurchase
program at some point within the next 12-24 months if asset
sales and the operating environment proceed as expected.  Hilton
has US44.7 million shares authorized for repurchase and
management was continually challenged by equity shareholders at
its recent analyst day in December to adopt a more shareholder-
friendly capital allocation policy.  Furthermore, Marriott and
Starwood are both actively buying back shares.

Rating Outlook Considerations:

Fitch's rating upgrade incorporates management's track record
that is again being demonstrated through the asset sale and
deleveraging execution since the HI transaction.  The Positive
Outlook incorporates an expectation that balance sheet
improvement remains a priority in the near term, that management
continues to execute on its asset sale/deleveraging plan, and
that the strong demand environment remains intact.  A further
upgrade to an investment grade rating will be considered as the
company makes substantial progress toward its stated goal of
achieving its target adjusted leverage ratio of 3.5.

Fitch may lower Hilton's Positive Outlook if there is change in
management's current asset sale/deleveraging plan, if there is a
resumption of share repurchase activity in the near term, or if
Fitch's outlook on industry demand changes.  Longer-term, Fitch
believes Hilton's credit profile can support a sizable share
repurchase program.

Headquartered in Beverly Hills, California, Hilton Hotels Corp.
-- http://www.hilton.com/-- together with its subsidiaries,
engages in the ownership, management, and development of hotels,
resorts, and timeshare properties, as well as in the franchising
of lodging properties in the United States and internationally,
including Barbados, Costa Rica and Trinidad and Tobago in Latin
America.


HILTON HOTELS: S&P Places BB Corp. Credit Rating on CreditWatch
---------------------------------------------------------------
Standard & Poor's Ratings Services placed its ratings on Hilton
Hotels Corp., including the 'BB' corporate credit rating, on
CreditWatch with positive implications.

The CreditWatch listing follows Hilton's update today that it
continues to make good progress in selling assets and that a
meaningful level of asset sales could occur over the near term,
which could lead to a faster-than-expected pace of debt
reduction.

Hilton has announced these potential transactions:

   -- The sale of part or all of the company's Scandic-
      branded portfolio, which Standard & Poor's would
      view favorably because it would lead to sale
      proceeds in excess of expectations and the transfer
      of a meaningful portion of Hilton's fixed lease
      obligations, as well as improve margins in Hilton's
      global lodging portfolio;

   -- The sale of a portfolio of 10 hotels in Continental
      Europe;

   -- The sale of the Hilton Caledonian in Scotland; and

   -- The sale of six hotels in the U.S.

Headquartered in Beverly Hills, California, Hilton Hotels Corp.
-- http://www.hilton.com/-- together with its subsidiaries,
engages in the ownership, management, and development of hotels,
resorts, and timeshare properties, as well as in the franchising
of lodging properties in the United States and internationally,
including Barbados, Costa Rica and Trinidad and Tobago in Latin
America.




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


* URUGUAY: Spanish Envoy Mediates in Dispute with Argentina
-----------------------------------------------------------
Juan Antonia Yanez Barnueo, Spain's envoy ambassador to mediate
between Argentina and Uruguay's pulp mill construction dispute,
met Monday Argentine Foreign Affairs Minister Jorge Taiana for a
third round of talks.  He then met Tuesday Uruguayan Foreign
Affairs Minister Reinaldo Gargano to discuss the conflict and
come up with a possible solution.

The neighboring countries are at odds over the construction of
two pulp mills along their river border.

The Argentine government and environmental groups are protesting
the mills' alleged adverse effect on marine life at their river
border.  Uruguay argued that studies have been made ascertaining
the safety of the river habitat and measures would be taken to
ensure that the mills won't pollute the river.

In addition, Argentina claims Uruguay violated the 1975 Statute
of the River Uruguay, which states that all issues concerning
the river must be agreed upon by the two nations.

The matter has been brought to the International Court of
Justice at The Hague.  A preliminary ruling was issued in favor
of Uruguay.  The ruling, along with a financing from the World
Bank, renewed a series of protests and blockades of access roads
leading to Uruguay.

Merco Press says Argentina expressed "its full willingness" to
dialogue with Uruguay in order to find a solution to their
dispute.

Uruguay has previously refused to dialogue unless Argentine
protesters are stopped from blockading access to Uruguay.
However, the International Court does not think the protests are
materially damaging to Uruguay.  For the Argentine government's
part, it said in reports that it won't force its citizens to
stop picketing because it is within their rights of free
expression.

According to Merco Press, the possible solutions to the dispute
are:

   -- construction of a 30-km long pipeline
      down the River Uruguay through which, the
      wastes coming from the mills would be
      pumped;

   -- reshaping to help limit the plant visual
      contamination (huge chimney) from the
      Argentine side; and

   -- construction of an additional drain that
      be jointly financed by Argentina, Uruguay
      and Spain.

                         *    *    *

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




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


PETROLEOS DE VENEZUELA: Halts Operations at Puerto La Cruz Plant
----------------------------------------------------------------
Venezuela's state oil company Petroleos de Venezuela told
Business News Americas that operations have been discontinued at
its Puerto La Cruz refinery, due to an operational failure.

The Puerto La Cruz plant is near the resort city of Puerto La
Cruz in eastern Venezuela.  It is one of Petroleos de
Venezuela's three refineries in the nation.  The other two
plants are:

          -- CRP, and
          -- El Palito.

As reported in the Troubled Company Reporter-Latin America on
Jan. 31, 2007, Petroleos de Venezuela SA said that three workers
were injured in an accident at a furnace in the firm's Puerto La
Cruz plant.  The injured workers are in a stable condition, the
firm stated.  According to the company, there was an accident
during the works to restart furnace H751 of the atmospheric
distiller at Puerto La Cruz.  The firm said, "The incident did
not have any impact on the rest of the refinery's units, which
remain in service.

Petroleos de Venezuela said in a statement that the Fluid
Catalytic Cracking unit and the atmospheric distillation unit
had to lessen their loads after the accident.

Petroleos de Venezuela had promised in 2006 to conduct a US$2-
billion modernization of Puerto La Cruz to boost its processing
capacity to 200,000 barrels per day from 120,000 barrels daily.

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

                        *    *    *

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


* VENEZUELA: Analysts Say Movilnet Must be Separated from Cantv
---------------------------------------------------------------
The Venezuelan government should separate mobile unit
Telecomunicaciones Movilnet CA from CA Nacional Telefonos de
Venezuela aka Cantv, if the nationalization occurs, Business
News Americas reports, citing industry analysts.

Analysts quoted by BNamericas said the government subsidizes for
Movilnet's operations or services could affect the overall
health of the mobile industry.

Cantv's nationalization could destabilize Venezuela's mobile
market, BNamericas says.

However, telecoms regulator Conatel director Jesse Chacon said
in a statement, "We would be an irresponsible government if we
separated Movilnet from [Cantv's] operations."

BNamericas relates that Conatel is adamant that Movilnet will
fall under state control when Cantv is nationalized.

Conatel told BNamericas that it would use Movilnet's profits to
increase mobile coverage in the south of Venezuela.

The government would seek to reach an accord with Cantv
shareholders to change the ownership of the firm.  However, it
could confiscate the company no agreement could be reached,
BNamericas says, citing Mr. Chacon.

                          About Cantv

Compania Anonima Nacional Telefonos de Venezuela, Cantv, offers
telecommunications services.  The company provides domestic and
international long distance telephone services throughout
Venezuela, wireless telephone services, and Internet access, and
publishes telephone directories.

                        *    *    *

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


* VENEZUELA: May Pay Verizon Less Than US$677MM for Cantv Stake
---------------------------------------------------------------
Venezuela may pay less than the US$677 million price Verizon
Communications Inc. set for its 28.5% stake in CA Nacional
Telefonos de Venezuela aka Cantv, Bloomberg reports.

As reported in the Troubled Company Reporter-Latin America on
Jan. 30, 2007, Venezuela President Hugo Chavez announced the
nationalization of Cantv early in January.  The country's leader
later added that he won't pay the market price for the network's
shares.  Telecommunications Minister Jesse Chacon said in a news
conference that payment for the shares will depend on the
owners' attitude.  He said, "If we don't reach an agreement with
the owners, we'll apply the expropriations law and declare it a
public utility.  If the owners are willing to sell at reasonable
terms, we're open to that possibility."

Verizon Communications said in a statement that it isn't
challenging the government's plan to nationalize Cantv.
Instead, it wants the nationalization process to move promptly
and properly.

Bloomberg relates that Verizon Communications didn't disclose
the amount it expected to get for its stake.

According to Bloomberg, Verizon Communications agreed in April
2006 to sell its stake in Cantv to a joint venture of America
Movil SA and Telefonos de Mexico SA for US$677 million.  The
price represents 0.62% of Verizon Communications' market value.

However, President Chavez decided for Cantv's nationalization
before the sale of the stake could be approved by the regulator.

Analysts told Bloomberg that Verizon Communications investors
see the Cantv stake as an insignificant factor in the parent
firm's value.

Verizon Communications has been selling several assets that
don't serve its focus on selling high-speed Internet and
wireless phone service in US markets, according to Bloomberg.
Cantv sells domestic and international long-distance phone
service, Internet access and phone directories in Venezuela.

"Most people look at Verizon's valuation as being driven by non-
voice services first and wireless voice services second. Cantv
doesn't meet any of that," Albert Lin, an analyst at American
Technology Research, told Bloomberg.

American Technology assigned a "buy" rating on Verizon
Communications shares.

William Power, an analyst with Robert W. Baird & Co., commented
to Bloomberg, "It's largely already out of investors' earnings
expectations."

Bloomberg says that Baird & Co. placed a "neutral" rating on
Verizon Communications shares.

"We have been anticipating that the government would begin to
define the process that they're going to follow in nationalizing
Cantv.  That process hasn't been fully defined," Verizon
Communications told Bloomberg.

                         About Cantv

Compania Anonima Nacional Telefonos de Venezuela, Cantv, offers
telecommunications services.  The company provides domestic and
international long distance telephone services throughout
Venezuela, wireless telephone services, and Internet access, and
publishes telephone directories.

                About Verizon Communications

Verizon Communications Inc. provides communications services
through four segments: Domestic Telecom, Domestic Wireless,
Information Services and International.  The domestic wireline
telecommunications business provides local telephone services,
including broadband in 28 states and Washington, D.C.  The
domestic wireless business, operating as Verizon Wireless,
provides wireless voice and data products and services across
the United States.  Information Services operates directory
publishing businesses and provides electronic commerce services.
Verizon's International segment includes wireline and wireless
communications operations and investments in the Americas and
Europe.  In connection with the closing of the merger with MCI,
Inc., which occurred on January 6, 2006, Verizon owns and
operates end-to-end global Internet protocol networks, which
includes over 270,000 domestic and 360,000 international route
miles of fiber optic cable and provides access to over 140
countries worldwide.

                        *    *    *

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


* VENEZUELA: President to be Able to Make Oil & Gas Decrees
-----------------------------------------------------------
Venezuelan lawmakers told the Associated Press that they would
give President Hugo Chavez special powers to make decrees to
change oil, gas and electricity industries.

Lawmakers would ratify an "enabling law" to let President Chavez
ratify measures by decree for 18 months in the energy sector as
well as in 10 other areas, AP says, citing National Assembly
President Cilia Flores.

Ms. Flores told AP, "We are in complete agreement with the
executive branch legislating on energy issues."

The law would allow President Chavez make necessary changes in
the oil sector, as well as the natural gas and electricity
sectors, AP notes, citing Ms. Flores.

AP relates that the bill needs final approval on its second
reading in the assembly.

President Chavez told AP that those private firms affected in
the change would have the option to stay on as minority partners
in the eastern Orinoco region.  These companies are:

          -- British Petroleum PLC, Exxon Mobil Corp.,
          -- Chevron Corp.,
          -- ConocoPhillips Co.,
          -- Total SA, and
          -- Statoil ASA.

                        *    *    *

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



                         ***********


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

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

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

This material is copyrighted and any commercial use, resale or
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 * * *