TCRLA_Public/070205.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

          Monday, February 5, 2007, Vol. 8, Issue 25

                          Headlines

A N T I G U A   &   B A R B U D A

DIGICEL LTD: Billboard Doesn't Indicate Ambush Marketing

A R G E N T I N A

CMS ENERGY: To Sell Portfolio of Argentina Assets for US$180MM
COMVERSE TECH: S&P Keeps BB- Corp. Credit Ratings on CreditWatch
FREESCALE: Reports Preliminary Results for Fourth Quarter 2006
VALEANT PHARMA: S&P Affirms 'B+' Corporate Credit Rating

* ARGENTINA: Paying US$982.5-Mln Debt to Spain in Six Years Time
* ARGENTINA: Pipe Crack Stops Bolivia's Gas Delivery to Nation

B A H A M A S

DELTA AIR: Adds Two More Bahamian Destinations on June 16
TEEKAY SHIPPING: LNG Partner Declares Cash Distribution
TEEKAY SHIPPING: Offshore Partner Declares Cash Distribution

B A R B A D O S

ANDREW CORP: Incurs US$2.5 Mil. Net loss in First Quarter 2007

B E R M U D A

BERMUDA BAKERY: Proofs of Claim Filing Is Until Feb. 14, 2007
ESSEX CAPITAL: Proofs of Claim Filing Is Until Feb. 16
GLOBAL CROSSING: Providing VPN Service to Waukesha Bearings
IMARX NEWCO: Proofs of Claim Filing Is Until Feb. 14, 2007
PBM INTERNATIONAL: Final General Meeting Is Set for Feb. 9, 2007

SRO RUN-OFF: Proofs of Claim Filing Is Until Feb. 14
VIEW ENTERPRISES: Proofs of Claim Filing Is Until Feb. 7
WALTON INSURANCE: Court Sets Scheme Creditors Meeting on May 17
WARNER CHILCOTT: Reduces Interest Rate on Existing Facility
WMG EUROPEAN: Proofs of Claim Filing Is Until Feb. 9, 2007

B O L I V I A

INTERMEC INC: Names Cisco Systems Alliance Partner of the Year
INTERNATIONAL PAPER: Earns US$1.1 Billion in Full Year 2006

* BOLIVIA: Gas Delivery to Argentina Delayed Due to Pipe Crack

B R A Z I L

BANCO NACIONAL: Grants BRL15.8-Mil. Loan to Libbs Farmaceutica
COMPANHIA DE BEBIDAS: Unit Inks Support Agreement with Lakeport
COSAN SA: Moody's Takes No Action for Ba2 Global Currency Rating
INTERNATIONAL PAPER: Closes Brazilian Assets Exchange with VCP
PETROLEO BRASILEIRO: Moves Launching of Re-Gasification Units

PETROLEO BRASILEIRO: Swapping Gas Exploration Areas with ONGC
SA FABRICA: Moody's Assigns B2 Foreign Currency Rating
TELEMAR: S&P Raises Corporate Credit Rating to BB+ from BB

C H I L E

NOVA CHEMICALS: Fitch Downgrades Issuer Default Rating to BB-

C O L O M B I A

BANCO DEL CAFE: Davivienda to Issue New Debt to Fund Purchase
BANCOLOMBIA SA: Finance Superintendent Fines Firm for COP250MM
CA INC: Posts US$1 Bil. Revenue for Quarter Ended Dec. 31, 2006

* COLOMBIA: Ports & Routes Upgrade to Boost Trade & Investment

C O S T A   R I C A

US AIRWAYS: America West Pilots Demand Fair, Single Contract

* COSTA RICA: State Bank Posts CRC38.4 Billion 2006 Net Profits

D O M I N I C A N   R E P U B L I C

CLOROX CO: Deficit Narrows to US$MM in Qtr. Ended Dec. 31, 2006
FREESTAR TECH: Unit Achieves Services Provider Certification

* DOMINICAN REPUBLIC: State Firm Inks Pact with Puerto Plata

E C U A D O R

* ECUADOR: Reduces Foreign Debt Service in Proposed 2007 Budget

H O N D U R A S

CONTINENTAL AIRLINES: Reports January Operational Performance

* HONDURAS: State Power Firm Gets US$80MM Aid from World Bank

J A M A I C A

CUMMINS INC: Sales Increase to US$11.36 Bil. in Full Year 2006
DIGICEL LTD: Billing TV Broadcasts to Cellphones Per Second
SUGAR COMPANY: Frome Loses US$75 Mil. Due to Sugarcane Burning
WEST CORP: Posts US$496.4MM Revenues in Qtr. Ended Dec. 31, 2006
WEST CORP.: Loan Add-On Cues S&P to Affirm B+ Loan Rating

* JAMAICA: Central Bank Posts US$20 Billion Boost in Assets
* JAMAICA: Negotiating Air Services Pact with Germany

M E X I C O

ALASKA AIRLINES: Introduces Two 737-400 Aircraft to Fleet
BEST MANUFACTURING: Wants to Sell All Remaining Assets
BEST MANUFACTURING: Court Extends Investigation Termination Date
CELESTICA INC: Moody's Puts Ratings Under Review for Downgrade
FOAMEX INT: Bankruptcy Court Confirms Plan of Reorganization

FORD MOTOR: Reports 19% Decline on January Sales
FORD MOTOR: May Receive New Offers for Aston Martin Sports Car
GENERAL MOTORS: Asks for Increase in Battery Research Funding
GRUPO TMM: Seeks Damage from KCS Under Acquisition Agreement
KANSAS CITY: Unit Raises Note Premium Consent Payment to US$7.50

KANSAS CITY: Asserts Claim Under Acquisition Pact with Grupo TMM
VITRO SAB: Fitch Assigns B+ Rating on US$1 Bil. Proposed Debt
VITRO SAB: S&P Lifts Senior Unsecured Rating to B from CCC+

P A N A M A

* PANAMA: Gets Bids for Environmental Review on Canal Expansion
* PANAMA: IDB Provides US$289,880 Loan to Santa Fe Wind Projects
* PANAMA: Regulator Cancels 9 Requests for Hydro Projects

P A R A G U A Y

* PARAGUAY: IDB Grants US$1.4 Mil. Technical Cooperation Grant

P E R U

* PERU: Posts PEN48.2MM Rural Electrification Projects in 2006
* PERU: Posts US$515 Million Exploration & Production Investment

P U E R T O   R I C O

FIRST BANCORP: Earns US$114.6 Mln. for Qtr. Ended Dec. 31, 2005
PIER 1: Sales Decline 13.7% in January 2007
SIMMONS CO: Moody's Assigns Caa1 Rating on US$275-Mil. Loan
SIMMONS CO: Parent to Borrow US$275-Mil. from Deutsche, et al.
WESCO INT'L: Board Authorizes US$400MM Stock Repurchase Program

WESCO INT: Posts US$1.4 Bil. Net Sales in 2006 Fourth Quarter
WESCO INT: S&P Says Repurchase Program Won't Affect Ratings

T R I N I D A D   &   T O B A G O

HILTON HOTELS: Discloses Executive Management Changes
ROYAL CARIBBEAN: Declares US$0.15 Per Share Quarterly Dividend

U R U G U A Y

* URUGUAY: Dinamige Calls on Parties for Uranium Exploration

V E N E Z U E L A

PETROLEOS DE VENEZUELA: Seeks to Increase Stake in Sincor


                          - - - - -


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


DIGICEL LTD: Billboard Doesn't Indicate Ambush Marketing
--------------------------------------------------------
ICC Cricket World Cup commercial manager Stephen Price has
denied to Radio Jamaica that Digicel Ltd.'s billboard has
breached ICC ambush marketing stipulations.

According to Radio Jamaica, Cable and Wireless Antigua officials
alleged that Digicel illegally placed a billboard near the Sir
Vivian Richards Stadium, where World Cup matches will be held.

Reports say that Cable and Wireless claimed that the Digicel
billboard was among the 70 instances of possible ambush
marketing.

However, Cable and Wireless' allegation was found to be
unjustified, the Antigua Sun relates.

Mr. Price told Radio Jamaica that Digicel's billboard in the
stadium's general area does not breach any ICC ambush marketing
stipulations.

The billboard was not located in the confines of the stadium,
nor was it within the control of Cricket World Cup, The Sun
states, citing Mr. Price.

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

                        *    *    *

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

                        *    *    *

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




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


CMS ENERGY: To Sell Portfolio of Argentina Assets for US$180MM
--------------------------------------------------------------
CMS Energy has signed a binding letter of intent to sell a
portfolio of its businesses in Argentina and its northern
Michigan non-utility natural gas assets for US$180 million.

A principal subsidiary of CMS Energy, CMS Enterprises, signed
the binding letter of intent with Michigan-based Lucid Energy,
whose financial partners include Sociedad Argentina de Energia
S.A., aka Sadesa, an Argentine company.

The proposed sale, subject to negotiation and execution of a
definitive purchase-sale agreement, is expected to close in the
first half of 2007.  Proceeds from the sale will be used to
reduce debt and invest in CMS Energy's utility, Consumers
Energy.

The assets being sold include all of CMS Enterprises' electric
generating plant interests in Argentina (CT Mendoza, Ensenada,
El Chocon), and its interest in the TGM natural gas pipeline
business in Argentina.  CMS Enterprises will maintain its
interest in the TGN natural gas business in Argentina, which
remains subject to a potential sale to the government of
Argentina.

In Michigan, the sale includes CMS Enterprises' natural gas
pipelines and processing assets: the Antrim natural gas
processing plant, 155 miles of associated gathering lines, and
interests in three special purpose gas transmission pipelines
that total 110 miles.

CMS Energy also plans to conduct an auction to sell a second
portfolio of assets:

   -- its Atacama combined gas pipeline and power generation
      businesses in Argentina and Chile,

   -- its electric generating plant in Jamaica, and

   -- its CPEE electric distribution business in Brazil.

The sale of those businesses is expected to be completed by the
end of 2007.

The company had announced its plan last year to sell a majority
of its interest in CPEE through a planned initial public
offering in Brazil, and will retain that as an option, pending
the indications from the auction.

CMS Energy Corp. -- http://www.cmsenergy.com/-- is a  
Michigan-based company that has as its primary business
operations an electric and natural gas utility, natural gas
pipeline systems, and independent power generation.  Through its
regulated utility subsidiary, Consumers Energy Co., the company
provides natural gas and electricity to almost 60% of nearly 10
million customers in Michigan's lower-peninsula counties.  It
has operations in Argentina.

                        *    *    *

As reported in the Troubled Company Reporter on Oct. 16, 2006,
Moody's Investors Service lowered its Corporate Family Rating
for CMS Energy Corp. to Ba2 from Ba1, in connection with its new
Probability-of-Default and Loss-Given-Default rating
methodology.


COMVERSE TECH: S&P Keeps BB- Corp. Credit Ratings on CreditWatch
----------------------------------------------------------------
Standard & Poor's Ratings Services kept its 'BB-' corporate
credit and senior unsecured debt ratings on New York-based
Comverse Technology Inc. on CreditWatch with negative
implications, where they were placed on March 15, 2006.
      
"On Feb. 1, 2007, Comverse's common stock, along with that of
its wholly owned subsidiaries Verint Systems Inc. and Ulticom
Inc., were delisted from NASDAQ because of the companies'
failure to file form 10-K annual financial statements for the
year ended Jan. 31, 2006, or any subsequent form 10-Q quarterly
financial statement," said Standard & Poor's credit analyst Ben
Bubeck.

As a result of this delisting, holders of Comverse's convertible
notes will have the right to require the company to repurchase
the notes at a purchase price equal to 100% of the principal
amount.
     
It should be noted that the company reported cash balances of
nearly US$1.9 billion as of Oct. 31, 2006, compared with
approximately US$420 million of outstanding convertible notes.  
Therefore, the company is expected to be able to meet a
potentially accelerated maturity with current balance sheet
liquidity, if necessary.
     
Standard and Poor's will continue to monitor developments with
Comverse, including financial restatements, changes to the
strategy and corporate governance practice that may stem from
management departures, potential litigation, and debt maturity
acceleration to determine what, if any, affect they have on debt
ratings.  If holders of the convertible notes exercise their
rights to require the company to repurchase the notes, and they
are retired, the ratings on Comverse will be withdrawn.


FREESCALE: Reports Preliminary Results for Fourth Quarter 2006
--------------------------------------------------------------
Freescale Semiconductor, Inc., reported preliminary financial
results for the fourth quarter and full-year 2006.

Highlights for the quarter and full-year include:

   * Net sales of US$1.62 billion for the fourth quarter 2006;

   * Full-year 2006 net sales of US$6.36 billion;

   * Fourth quarter 2006 EBITDA of US$401 million or 25% of net
     sales; and

   * Full-year 2006 EBITDA of US$1.63 billion or 26% of net
     sales.

"Freescale delivered solid performance in the fourth quarter and
throughout 2006," said Michel Mayer, chairman and CEO.  "Our
diversified business model continues to provide stability in a
challenging market."

The company expects to provide audited GAAP results for the
full-year 2006, which will include material purchase accounting
adjustments, during the first quarter of 2007.  The financial
results included herein are un-audited and presented on a non-
GAAP basis, as they exclude all merger-related costs and the
impact of purchase accounting associated with the company's
acquisition by a private equity consortium completed in December
2006.

                          Net Sales

Net sales for the fourth quarter of 2006 were US$1.62 billion,
in-line with third quarter 2006 sales of US$1.62 billion, and 9%
above the US$1.48 billion reported in the fourth quarter of
2005.  Full-year 2006 net sales were US$6.36 billion, an
increase of 9% over the prior year total of US$5.84 billion.

                           EBITDA

Earnings Before Interest, Taxes, Depreciation and Amortization
for the fourth quarter of 2006 were US$401 million or 25% of net
sales, compared with US$433 million, or 27% of net sales, for
the third quarter of 2006 and US$362 million, or 24% of net
sales, for the fourth quarter of 2005.  EBITDA for full-year
2006 was US$1.63 billion or 26% of net sales, representing
growth of 22% on a year-over-year basis.

                      Segment Results

The Transportation and Standard Products segment reported net
sales of US$677 million in the fourth quarter of 2006, compared
with US$683 million in the third quarter of 2006 and US$649
million in the fourth quarter of 2005.  Revenues for 2006 were
US$2.71 billion, a 6% increase over the prior year total of
US$2.57 billion.

The Wireless and Mobile Solutions segment reported net sales of
US$578 million in the fourth quarter of 2006, compared with
US$539 million in the third quarter of 2006 and US$476 million
in the fourth quarter of 2005.  Revenues for 2006 were US$2.14
billion, a 20% increase over the prior year.

The Networking and Computing Systems segment reported net sales
of US$343 million, compared with US$369 million in the third
quarter of 2006 and US$338 million in the fourth quarter of
2005.  Revenues for 2006 were US$1.43 billion, essentially flat
with the prior year.  Excluding the impact of discontinued
businesses, revenues increased 15% and 14%, respectively, for
the fourth quarter and full-year 2006.

                  Liquidity Highlights

Cash, cash equivalents and marketable securities were US$710
million at Dec. 31, 2006.  Capital expenditures were US$149
million and US$714 million, respectively, for the fourth quarter
and for full-year 2006.

Based in Austin, Texas, Freescale Semiconductor, Inc. (NYSE:FSL)
(NYSE:FSL.B) -- http://www.freescale.com/-- designs and
manufactures embedded semiconductors for the automotive,
consumer, industrial, networking and wireless markets.
Freescale Semiconductor became a publicly traded company in July
2004.  The company has design, research and development,
manufacturing or sales operations in more than 30 countries.  In
Latin America, Freescale Semiconductor has operations in
Argentina, Brazil and Mexico.

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 11, 2006,
Standard & Poor's Ratings Services lowered its corporate credit
rating on Freescale Semiconductor Inc. to 'BB-' from 'BB+' and
removed the rating from CreditWatch with negative implications,
where it had been placed on Sept. 11, 2006, following the
company's announcement that it was considering a business
transaction, later confirmed as a leveraged buyout.  The outlook
is negative.


VALEANT PHARMA: S&P Affirms 'B+' Corporate Credit Rating
--------------------------------------------------------
Standard & Poor's affirmed its ratings on Costa Mesa,
Calif.-based Valeant Pharmaceuticals International, including
the 'B+' corporate credit rating.  The ratings were removed from
CreditWatch, where they were placed with negative implications
Oct. 24, 2006, to reflect the ongoing uncertainty at that time
regarding the company's inability to file its Form 10-Q for the
third quarter and the possibility that all of its debt
obligations would have been accelerated.

Valeant recently successfully restated its financial results to
properly account for past stock option grants; the financial
impact was minimal.  The rating outlook on the company is
stable.

The speculative-grade rating on specialty pharmaceutical company
Valeant reflects the uncertainty relating to the company's
ongoing restructuring plan and challenges to drive earnings and
cash flow growth.  These factors are somewhat offset by
Valeant's diverse product portfolio and limited debt maturities
over the intermediate term.

Valeant is currently in the midst of restructuring its
operations to cut costs and increase focus on select products
and prospects.  The company intends to incur a restructuring
charge of US$80 million-US$100 million, with 25%-35% of the
charge representing cash charges.  Funds from operations to debt
is 16%, and debt to EBITDA is 4.5x.  While these measures are an
improvement over those of recent years, they are still weak.

Headquartered in Costa Mesa, California, Valeant Pharmaceuticals
International (NYSE:VRX) -- http://www.valeant.com/is a
research-based specialty pharmaceutical company that discovers,
develops, manufactures and markets products primarily in the
areas of neurology, infectious disease and dermatology.  The
company has offices in Argentina.


* ARGENTINA: Paying US$982.5-Mln Debt to Spain in Six Years Time
----------------------------------------------------------------
The Argentine government will reportedly pay Spain about US$983
million in loan that's in default.

Economy Minister Felisa Miceli said that the six-year repayment
plan is another milestone in Argentina's recovery from its
financial crisis in 2001.  The crisis, according to the
Associated Press, was brought on by extensive government
spending and borrowing.

The economy minister disclosed that both parties agreed to an
annual interest rate equal to the London Interbank Offered Rate
plus 140 basis points, Bloomberg News reports.  Argentina will
hand Spain this year 10% pay of the principal plus quarterly
interest.

Ms. Miceli told reporters during a press conference that her
country is grateful to the Spanish government for extending in
2001 a US$1 billion loan to the South American nation in
response to its call for financing to help it avoid the economic
crisis.  Of the total available credit, Argentina only drew
US$860 million.  The country defaulted to more than US$100
billion in debts.

"Spain was one of the few countries, or perhaps the only one,
that helped Argentina at a very difficult time," President
Nestor Kirchner was quoted by Bloomberg as saying.

With the repayment to Spain in place, Argentina is left with one
pending debt to settle.  The country has yet to reach a
consensual agreement with the Club of Paris, which it owes
US$6.3 billion.

Argentina's ability to restructure its liabilities became
possible through a booming economy.  Bloomberg says Argentina
posted a budget surplus of 3.6% of its gross domestic product in
2006.  The country's economy is expected to grow 7.4% this year.

According to AP, Spain is one of the country's biggest
investment partners.  Major investors in Argentina include oil
and gas major Repsol YPF and telecommunication firm Telefonica.

                        *    *    *

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: Pipe Crack Stops Bolivia's Gas Delivery to Nation
--------------------------------------------------------------
Bolivian state-run oil firm, Yacimientos Petroliferos Fiscales
de Bolivia, told the dpa German Press Agency that the nation has
to defer natural gas deliveries to Argentina due to a crack in a
pipe.

Bolivia postponed about four million cubic meters of natural gas
deliveries.  The country usually sends 7.7 million cubic meters
of gas to Argentina daily, dpa German relates.

According to dpa German, the pipe broke after heavy rain in the
pumping station in San Jose de Pocitos, which is about 1,100
kilometers south of La Paz.

Technicians closed the valves of the pipe and are repairing the
crack, dpa German states.

                        *    *    *

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


DELTA AIR: Adds Two More Bahamian Destinations on June 16
---------------------------------------------------------
Delta Air Lines is adding two new routes between its largest hub
in Atlanta and The Islands of The Bahamas with nonstop service
to George Town, Exuma and North Eleuthera beginning June 16.  
The new flights, to be operated by Delta Connection carrier
Atlantic Southeast Airlines, are the latest additions in the
largest international expansion in Delta's history.

"The Bahamas has been a preferred vacation spot for many years
and we are thrilled to add George Town, Exuma and North
Eleuthera as the latest convenient flight options from our
Atlanta hub," said Joanne Smith, Delta's vice president of
Marketing.  "These flights complement our existing service to
Nassau from Atlanta, Cincinnati, New York-LaGuardia and Orlando
and to Freeport, Grand Bahama Island from Atlanta and reaffirm
our commitment to be a leading carrier to the Bahamas."

The new flights also come on the heels of an announcement by the
Bahamas Ministry of Tourism and the Bahamas Hotel Association
that Delta has received the Cacique Award as the Bahamas
"Airline of the Year" for 2006.  The Cacique Award is the most
prestigious tourism award in Bahamas given every year to
companies and individuals in the travel industry, including
airlines, cruise lines, taxi drivers, and hotel employees.

"Delta is honored to be the Bahamas' 2006 Airline of the Year in
recognition for the excellent service provided by our employees
to customers in the Bahamas and around the world," said Ms.
Smith, who accepted the award at a ceremony on Jan. 26.  "This
award recognizes the continuing improvements in our service and
flight schedules, including new cabin interiors, stylish new
uniforms, celebrity-designed menus, signature cocktails, live,
in-seat entertainment on long-haul flights and a long list of
new international destinations."

"The Islands Of The Bahamas welcome new strategic nonstop
regional jet service from Atlanta to George Town, Exuma and
North Eleuthera by our long-term partner, Delta Air Lines,
winner of the highly coveted Cacique Award as 'Airline of the
Year - 2006,' " stated Bahamas Minister of Tourism, Hon. Obie
Wilchcombe.  "This would stimulate increased tourism to Exuma
and North Eleuthera from repeat customers and from new customers
who would now enjoy unfettered, direct market access from
Atlanta and from numerous cities that connect into Delta's
Atlanta hub."

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.


TEEKAY SHIPPING: LNG Partner Declares Cash Distribution
-------------------------------------------------------
Teekay GP LLC, the general partner of Teekay LNG Partners L.P.
and a publicly traded master limited partnership formed by
Teekay Shipping Corp., has declared a cash distribution of
US$0.4625 per unit for the quarter ended Dec. 31, 2006,
representing a total cash distribution of US$16.5 million.  The
cash distribution is payable on Feb. 14, 2007, to all
unitholders of record on Feb. 9, 2007.

               About Teekay LNG Partners L.P.

Teekay LNG Partners L.P. is a publicly traded master limited
partnership formed by Teekay Shipping Corporation as part of its
strategy to expand its operations in the liquefied natural gas
and liquefied petroleum gas shipping sectors.  Teekay LNG
Partners L.P. provides LNG, LPG and crude oil marine
transportation services under long-term, fixed-rate time charter
contracts with major energy and utility companies through its
fleet of thirteen LNG carriers, four LPG carriers and eight
Suezmax class crude oil tankers. Seven of the thirteen LNG
carriers and three of the LPG carriers are newbuildings
scheduled for delivery between early 2007 and mid-2009.

                   About Teekay Shipping

Teekay Shipping Corp., a Marshall Islands corporation
headquartered in Nassau, Bahamas, transports more than 10% of
the world's seaborne oil and has expanded into the liquefied
natural gas shipping sector through its publicly listed
subsidiary, Teekay LNG Partners L.P., and into the offshore
production, storage and transportation sector through its
publicly-listed subsidiary, Teekay Offshore Partners L.P.  With
a fleet of over 140 tankers, offices in 17 countries and 5,100
seagoing and shore-based employees, Teekay provides a
comprehensive set of marine services to the world's leading oil
and gas companies, helping them seamlessly link their upstream
energy production to their downstream processing operations.

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 21, 2006,
Moody's Investors Service has downgraded the ratings of Teekay
Shipping Corp. -- Corporate Family to Ba2 from Ba1, and
senior unsecured to Ba3 from Ba2.  Moody's also affirmed the
SGL-2 Speculative Grade Liquidity rating.  Moody's said the
rating outlook was changed to negative.


TEEKAY SHIPPING: Offshore Partner Declares Cash Distribution
------------------------------------------------------------
Teekay Offshore GP LLC, the general partner of Teekay Offshore
Partners L.P. and a publicly traded master limited partnership
formed by Teekay Shipping Corp., has declared a cash
distribution of US$0.05 per unit for the period of
Dec. 19, 2006, to Dec. 31, 2006, (US$1.40 per unit on an
annualized basis), representing a total cash distribution of
US$1.0 million.  The cash distribution is payable on
Feb. 14, 2007, to all unitholders of record on Feb. 9, 2007.

           About Teekay Offshore Partners L.P.

Teekay Offshore Partners L.P., a publicly traded master limited
partnership formed by Teekay Shipping Corporation, is an
international provider of marine transportation and storage
services to the offshore oil industry.  Teekay Offshore Partners
owns a 26.0% interest in and controls Teekay Offshore Operating
L.P., a Marshall Islands limited partnership with a fleet of 36
shuttle tankers (including 12 chartered-in vessels), four
floating storage and offtake units and nine conventional crude
oil Aframax tankers.  Teekay Offshore Partners L.P. also has
rights to participate in certain floating production, storage
and offloading opportunities involving Teekay Petrojarl ASA.

                   About Teekay Shipping

Teekay Shipping Corp., a Marshall Islands corporation
headquartered in Nassau, Bahamas, transports more than 10% of
the world's seaborne oil and has expanded into the liquefied
natural gas shipping sector through its publicly listed
subsidiary, Teekay LNG Partners L.P., and into the offshore
production, storage and transportation sector through its
publicly-listed subsidiary, Teekay Offshore Partners L.P.  With
a fleet of over 140 tankers, offices in 17 countries and 5,100
seagoing and shore-based employees, Teekay provides a
comprehensive set of marine services to the world's leading oil
and gas companies, helping them seamlessly link their upstream
energy production to their downstream processing operations.

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 21, 2006,
Moody's Investors Service has downgraded the ratings of Teekay
Shipping Corp. -- Corporate Family to Ba2 from Ba1, and
senior unsecured to Ba3 from Ba2.  Moody's also affirmed the
SGL-2 Speculative Grade Liquidity rating.  Moody's said the
rating outlook was changed to negative.




===============
B A R B A D O S
===============


ANDREW CORP: Incurs US$2.5 Mil. Net loss in First Quarter 2007
--------------------------------------------------------------
Andrew Corp. reported results for the first quarter of its
fiscal 2007.

             First Quarter Fiscal 2007 Highlights

   * Total sales increased 1% to US$522 million, compared with
     the prior year first quarter, a record first fiscal
     quarter for the company;

   * Wireless Infrastructure sales increased 3% to US$499
     million, total orders increased 2%, and ending backlog
     is 25% higher compared with the prior year first quarter;

   * Gross margin of 23.3%, compared with 22.7% in the prior
     year first quarter;

   * Net loss of US$0.02 per share, including US$0.10 per share
     of significant expense items;

   * EMS Wireless acquisition for US$50 million in cash closed
     on Dec. 1, 2006; and

   * Repurchased 1 million shares of common stock at an average
     price of US$10.09 per share.

Andrew Corp. reported total sales of US$522 million and a net
loss of US$2.5 million for the first quarter fiscal 2007. The
company recorded a tax rate for the quarter of 121%, which was
significantly higher than anticipated.  The higher tax rate was
due to losses in the United States and Italy, for which the
company recorded no current tax benefit.  Net income for the
prior year first quarter was US$14.8 million.

"Andrew achieved improved results in sales and gross margins
despite the very challenging spending environment among original
equipment manufacturers and North American operators, driven
primarily by consolidation," said Ralph Faison, president and
chief executive officer, Andrew Corp.  "Even with our revenue
pressured by external factors, we generated a year over year
increase in gross margin, and believe this demonstrates that our
focus on operational improvement is starting to materialize.  
Due to losses in the quarter in both the U.S. and Italy for
which we could not record a tax benefit, we had an unusually
high tax rate.  We anticipate that as our U.S. business returns
to profitability, we expect to see a much improved tax rate for
the overall year.

"Andrew remains confident that the long-term demand for our
wireless infrastructure products and solutions is robust despite
short-term disruptions that are negatively impacting our
industry.  We anticipate a return to normal spending patterns by
our customers as we approach the second half of our fiscal year.  
With our globally diversified customer base and portfolio of
complete radio frequency products and solutions, we believe
Andrew will benefit from growth in the wireless industry."

              First Quarter Financial Summary

Wireless Infrastructure sales increased 3% to US$499 million
versus the prior year first quarter due to strong demand for
antenna and cable products and the implementation of price
increases on cable products which were partially offset by
weaker sales of active products, primarily to OEM customers.  
Total orders of US$491 million increased 2% from the prior year
first quarter due mainly to a 3% increase in Wireless
Infrastructure orders.  Ending backlog was 25% higher at US$289
million compared with the prior year first quarter.

Gross margin was 23.3%, compared with 22.6% in the prior quarter
and 22.7% in the prior year first quarter.  Gross margin
increased versus the prior quarter and prior year first quarter
due mainly to the solid performance by antenna and cable
products and price increases on cable products, which were
partially offset by a significant decline in sales of base
station components to certain OEMs affected by consolidation.

Operating income for the quarter was US$15.9 million, or 3.1% of
sales, compared with US$21.3 million, or 4.1% of sales in the
prior year first quarter.  Excluding significant items,
operating income for the quarter was US$30.7 million, or 5.9% of
sales compared with US$27.3 million, or 5.3% of sales in the
prior year first quarter.

Research and development expenses were US$27.3 million, or 5.2%
of sales, in the first quarter, down from US$28.0 million, or
5.4% of sales, in the prior year first quarter. Sales and
administrative expenses increased to US$66.0 million, or 12.6%
of sales, in the first quarter, compared with US$61.7 million,
or 12.0% of sales, in the prior year first quarter.  Sales and
administrative expenses increased in absolute dollars and as a
percentage of sales due mainly to costs associated with
supporting sales growth in emerging markets, developing direct-
to-carrier channels and increased legal expenses for litigation
related to intellectual property.

Intangible amortization increased to US$5.9 million in the first
quarter, compared with US$5.1 million in the prior year first
quarter, primarily due to a US$1.2 million charge related to an
acquired intangible asset that was impaired during the quarter.

Other expenses increased to US$3.8 million in the first quarter,
compared with US$2.7 million in the prior year first quarter,
due primarily to foreign exchange losses.

The reported tax rate for the first quarter was 121%, due
primarily to losses and restructuring charges in the United
States and Italy for which the company cannot record current tax
benefits.  The company currently anticipates the full year tax
rate will be in the range of 40% to 42%.  The concentration of
significant losses and restructuring charges in countries for
which the company cannot record current tax benefits in the
first quarter resulted in a higher tax rate for the quarter than
is anticipated on a full year basis.  Due to these losses, the
tax rate for the quarter increased versus a reported rate of
19.9% in the prior year first quarter, which included a US$1.9
million tax benefit related to repatriation of foreign earnings.

Average diluted shares outstanding decreased to approximately
157 million from approximately 178 million in the prior year
first quarter primarily due to the accounting treatment for the
company's outstanding convertible debt.  Additionally, the
company repurchased 1.0 million shares of common stock during
the quarter at an average price of US$10.09, including
commissions and fees.  The company repurchased 3.4 million
shares over the last two quarters and has approximately 6.4
million of additional shares available for repurchase under an
existing authorized repurchase program.

The top 25 customers represented 69% of sales compared with 68%
in both the prior quarter and in the prior year first quarter.  
Major OEMs accounted for 41% of sales compared with 41% in the
prior quarter and 38% in the prior year first quarter.  Ericsson
represented more than 10% of the company's sales for the quarter
and Siemens represented more than 5% of the company's sales for
the quarter.

Sales in the Americas decreased 16% versus the prior year first
quarter due mainly to a reduction in spending by certain North
American operators and OEM customers who were in the process of
consolidating during the quarter.  The decline in North America
was partially offset by increased sales in Latin America.  EMEA
increased 13% from the prior year first quarter due mainly to
the impact of Precision Antennas, which was acquired in April
2006, and a favorable impact from foreign exchange rates.  Asia
Pacific increased 57% versus the prior year first quarter due
mainly to robust demand in India, China and Indonesia for
Antenna and Cable Products supporting network expansions.

"Obviously, this was a difficult quarter in North America with
several external factors impacting our performance," said Mr.
Faison.  "However, our geographic diversity is a great advantage
and that helped us generate growth in the quarter. We continued
to experience strong demand for our products in the emerging
markets including Latin America and Asia Pacific, specifically
India, where handset and subscriber growth is high and wireless
networks are being deployed rapidly.  With the opening of our
new, larger, state-of-the-art facility in Goa, India, we are
strategically positioned to better serve customers in this
important market."

The company has restructured its five product businesses into
two operating groups, Wireless Network Solutions and Antenna and
Cable Products, in order to reflect the distinct markets these
groups serve and to leverage the many opportunities for
collaboration and efficiencies in supporting global customers.  
Since the management reporting and operational structure of the
two new groups is still evolving, the company continued to
report its results using the five reporting segment structure in
place at the end of fiscal 2006.
       
Antenna and Cable Products increased 17% versus the prior year
first quarter due mainly to the implementation of cable
surcharges and price increases, strong demand in Latin America,
EMEA and Asia Pacific across most product lines, and the impact
from the acquisition of Precision Antennas.  Satellite
Communications declined 21% due mainly to reduced sales of earth
station antennas to consumer satellite service providers and
lower direct-to-home satellite products sales.  The prior year
first quarter included substantial earth station antenna sales
to consumer satellite service providers for gateways under a
contract that ended in the fiscal 2006 first quarter.  Base
Station Subsystems sales decreased 27% versus the prior year
first quarter due primarily to weakness in base station
component sales to certain OEM customers. Network Solutions
declined 14% versus the prior year first quarter due mainly to a
decline in E-911 geolocation equipment sales in North America.  
In addition, the company experienced continued revenue
recognition delays in the first quarter for certain
international geolocation sales due to ongoing network
acceptance testing.  Wireless Innovations increased 2% due
mainly to strong repeater sales, which were partially offset by
lower systems integration project revenues.
    
Antenna and Cable Products operating income increased due mainly
to a 17% increase in segment sales, a benefit from
implementation of surcharges and price increases on certain
cable products and the impact from the acquisition of Precision
Antennas, partially offset by higher commodity costs.  Satellite
Communications operating loss increased versus the prior year
first quarter due mainly to a 21% decline in sales.  Satellite
Communications operating performance improved sequentially due
to improved gross margins.  Base Station Subsystems operating
income decreased versus the prior year first quarter due mainly
to weakness in base station component sales to certain OEM
customers.  Fixed costs on lower volume as well as higher
inventory provisions for the filter supply chain transition also
contributed to the operating loss.  Base Station Subsystems
operating loss included a restructuring charge of US$5.6
million, primarily attributable to severance costs associated
with the previously announced headcount reduction in Italy for
the filter product line.  The company also recorded a charge of
US$1.5 million during the quarter for a product quality matter
involving a specific OEM customer.  During the first quarter,
the company made continued progress towards relocating its high-
volume filter product line manufacturing to Elcoteq and expects
this transition to be complete by the second half of fiscal
2007.  Network Solutions operating income declined versus the
prior year first quarter due mainly to a decline in E-911
geolocation equipment sales in North America.  Wireless
Innovations operating income increased versus the prior year
first quarter due mainly to modest sales growth, improved gross
margin and better revenue mix.

          Balance Sheet and Cash Flow Highlights

Cash used in operations was US$26.5 million in the first
quarter, compared with cash used in operations of US$1.8 million
in the prior year first quarter.  Cash used in operations
increased compared with the prior year first quarter due to the
net loss and increased working capital requirements.  Accounts
receivable were US$535 million and days' sales outstanding were
89 days at Dec. 31, 2006, compared with US$558 million and 80
days at Sept. 30, 2006.  The increase in DSOs in the current
quarter was primarily attributable to the geographic mix of
sales. Inventories were US$427 million, including US$14 million
acquired from EMS, and inventory turns were 3.8x at
Dec. 31, 2006, compared with US$388 million and 4.8x at
Sept. 30, 2006.  Inventories increased and inventory turns
declined compared with the prior quarter due to lower sales and
the anticipated build-up of inventories in advance of the moves
to two new cable manufacturing facilities.

Capital expenditures increased to US$20.0 million in the first
quarter compared with US$12.3 million in the prior year quarter
primarily due to construction costs for the new cable
manufacturing facilities in Goa, India, which opened during the
quarter, and in Joliet, Illinois, which is scheduled for
completion in the company's fiscal 2007 third quarter.

Cash and cash equivalents were US$100 million at Dec. 31, 2006,
compared with US$170 million at Sept. 30, 2006.  Cash and cash
equivalents decreased from the prior quarter due mainly to the
increase in cash used in operations, the EMS Wireless
acquisition and the repurchase of 1 million shares of common
stock.

Total debt outstanding and debt to capital were US$386 million
and 20.3% at Dec. 31, 2006, compared with US$346 million and
18.7% at Sept. 30, 2006.  Debt to capital increased primarily
due to increased borrowings to finance a portion of the
acquisition of EMS Wireless and additional working capital
requirements.

The balance sheet includes approximately US$14 million of net
assets held for sale, primarily related to the recently
announced PCT/Andes Industries strategic alliance, which the
company expects to close prior to the end of the fiscal second
quarter 2007.  "Our expanded strategic relationship with PCT
International and Andes Industries demonstrates our ongoing
commitment of seeking faster avenues to profitable growth," said
Mr. Faison.  "In addition, we continue to evaluate
underperforming product lines and ways to enhance our products
and solutions.  We closed our acquisition of EMS Wireless during
the first quarter and are optimistic about the strategic and
financial benefits it brings to Andrew."

"As the year progresses, we expect cash flow generation to
improve, particularly in our seasonally stronger second half of
the fiscal year," said Marty Kittrell, executive vice president
and chief financial officer.

                    Fiscal 2007 Outlook

The company has updated its annual guidance for fiscal year
2007, due to the reduced spending environment caused by OEM and
North American operator consolidation and a revised effective
tax rate forecast for the year.

Sales are anticipated to range from US$2.20 billion to US$2.325
billion, excluding any further significant rationalization of
product lines or significant acquisitions.  The company
continues to believe that it could experience more variability
in sales in the first half of fiscal 2007, due to historical
sales seasonality and ongoing consolidation of OEMs and
volatility in capital expenditures by key North American
operators.  The company expects gross margin expansion of at
least 100 basis points for the full year.

At Dec. 31, 2006, the company had fixed price purchase
commitments that covered approximately 12.3 million pounds of
copper.  The company expects to purchase approximately 39
million additional pounds of copper for the remainder of fiscal
2007.

The company currently anticipates the effective tax rate for the
year will be in the range of 40% to 42%, based on the
anticipated full year results.  The reported tax rate for future
quarters may be volatile due to the geographic mix of earnings
and losses.  The company expects that substantial improvement in
the tax rate should occur in the second half of fiscal 2007,
based on historical trends and anticipated higher levels of
earnings and reduced losses in the United States and Italy.

Based on the revised revenue guidance and current anticipated
tax rate, GAAP earnings per share are now anticipated to range
from US$0.34 to US$0.42 for the full year, including estimated
intangible amortization expense of approximately US$0.10 per
share, estimated restructuring charges of approximately US$0.08
per share, litigation expenses of approximately US$0.01 per
share, provision for a quality matter of approximately US$0.01
per share, and an anticipated gain of approximately US$0.06 per
share related to the sale of the second of two parcels of land
that comprise the Orland Park, Illinois manufacturing facility.  
These items are calculated on a pre-tax basis, as no tax benefit
or expense is expected to be recognized for these items for the
year.  Excluding these items, non-GAAP earnings per share are
now anticipated to range from US$0.48 to US$0.56 for the full
year.

Headquartered in Westchester, Illinois, Andrew Corp.
(NASDAQ:ANDW) -- http://www.andrew.com/-- designs, manufactures
and delivers equipment and solutions for the global
communications infrastructure market.  The company serves
operators and original equipment manufacturers from facilities
in 35 countries including, among others, these Latin American
countries: Argentina, Bahamas, Belize, Barbados, Bermuda and
Brazil.  Andrew is an S&P 500 company Founded in 1937.

                        *    *    *

As reported in the Troubled Company Reporter, Standard & Poor's
Ratings Services revised its CreditWatch implications on Andrew
Corp. to negative from developing.  The 'BB' corporate credit
rating and other ratings on the company were placed on Credit
Watch developing on Aug. 7, 2006.




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


BERMUDA BAKERY: Proofs of Claim Filing Is Until Feb. 14, 2007
-------------------------------------------------------------
Bermuda Bakery (Operations) Ltd.'s creditors are given until
Feb. 14, 2007, to prove their claims to Robin J. Mayor, the
company's liquidator, or be excluded from receiving any
distribution or payment.

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

Bermuda Bakery's shareholders agreed on Jan. 25, 2007, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.

The liquidator can be reached at:

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


ESSEX CAPITAL: Proofs of Claim Filing Is Until Feb. 16
------------------------------------------------------
Essex Capital Ltd.'s creditors are given until Feb. 16, 2007, to
prove their claims to Simon J. Payne, the company's liquidator,
or be excluded from receiving any distribution or payment.

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

Essex Capital's shareholders agreed on Jan. 23, 2007, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.

The liquidator can be reached at:

         Simon J. Payne
         Wakefield Quin, Chancery Hall
         52 Reid Street, Hamilton, Bermuda
         Hamilton, Bermuda


GLOBAL CROSSING: Providing VPN Service to Waukesha Bearings
-----------------------------------------------------------
Global Crossing Ltd. is providing a new fully managed IP Virtual
Private Network or VPN to the world's number one supplier of
fluid film and active magnetic bearings for turbo machinery,
Waukesha Bearings.  In addition to the IP VPN, Global Crossing
is also providing data, voice and video services to Waukesha
Bearings.

"Global Crossing delivered a new IP VPN solution that links our
primary offices and manufacturing facilities in North American
and Europe directly to our network," said Jeff Adams, CFO of
Waukesha Bearings.  "The IP VPN offers added technical benefits
over our previous solution, while cost-effectively connecting
our more remote sites to our network, saving thousands in local
loop costs.  In addition, Global Crossing met the requirements
of our corporate IT strategy and provided an easy-to-follow
roadmap to fully converge all our services onto IP in the near
future."

Waukesha Bearings, a Dover Company that provides bearings
primarily in the power generation and oil and gas sectors, is
utilizing its new network to transmit internal applications and
critical business communications among its offices and
manufacturing facilities.  The company will increase the
efficiency, security and reliability of its communications by
converging IP and data traffic on its network, and will move
towards convergence of voice in the future.

"Waukesha Bearings opted for a fully managed IP VPN so it could
free IT resources and personnel for other important company
initiatives, while Global Crossing manages their network," said
Dan Wagner, Global Crossing's executive vice president for
enterprise services.  "The managed IP VPN not only provides
substantial savings in tangible expenses, but in opportunity
costs as well."

Global Crossing's IP VPN service is available in more than 600
cities in 60 countries on six continents.  It provides customers
with extensive network coverage to keep remote employees
connected to the information they need to successfully conduct
business.

An IP VPN is the network of choice for a fully managed converged
IP solution supporting data, voice, video and multimedia
applications over a single IP-based platform.  IP VPNs give
customers more network control, while lowering total cost of
ownership.

                   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.


IMARX NEWCO: Proofs of Claim Filing Is Until Feb. 14, 2007
----------------------------------------------------------
ImaRx Newco's creditors are given until Feb. 14, 2007, to prove
their claims to Robin J. Mayor, the company's liquidator, or be
excluded from receiving any distribution or payment.

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

ImaRx's shareholders agreed on Jan. 24, 2006, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.

The liquidator can be reached at:

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


PBM INTERNATIONAL: Final General Meeting Is Set for Feb. 9, 2007
----------------------------------------------------------------
PBM International Ltd.'s final general meeting will be at 9:00
a.m. on Feb. 9, 2007, or as soon as possible, at the
liquidator's place of business.

PBM 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:

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

        
SRO RUN-OFF: Proofs of Claim Filing Is Until Feb. 14
----------------------------------------------------
SRO Run-Off Ltd.'s creditors are given until Feb. 14, 2007, to
prove their claims to Robin J. Mayor, the company's liquidator,
or be excluded from receiving any distribution or payment.

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

SRO Run- Off's shareholders agreed on Jan. 14, 2006, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.

The liquidator can be reached at:

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


VIEW ENTERPRISES: Proofs of Claim Filing Is Until Feb. 7
--------------------------------------------------------
View Enterprises Ltd.'s creditors are given until Feb 7, 2007,
to prove their claims to Robin J. Mayor, the company's
liquidator, or be excluded from receiving any distribution or
payment.

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

View Enterprises' shareholders agreed on Jan. 22, 2007, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.

The liquidator can be reached at:

         Robin J Mayor
         C/o Messrs. Conyers Dill & Pearman
         Clarendon House, Church Street
         Hamilton, HM DX, Bermuda,


WALTON INSURANCE: Court Sets Scheme Creditors Meeting on May 17
---------------------------------------------------------------
Walton Insurance Ltd.'s Scheme Creditors Meeting will be at
11:00 a.m. on May 17, 2007, at:

          Appleby Hunter Bailhache
          Canon's Court (5th Floor), 22 Victoria Street
          Hamilton, Bermuda

During the meeting, the company and the creditors would consider
and, if thought fit, agree to a proposed scheme arrangement.  

A scheme creditor may vote in person at the creditors' meeting
or may appoint another person, whether a scheme creditor or not,
as proxy to attend and vote in their place.  Scheme creditors
are requested to submit any Scheme Voting Form and form of proxy
to the company by 5:00 p.m. on May 9, 2007, at the company's
place of business at:

          Walton Insurance Ltd.
          Walton Scheme Administration
          c/o CIIC - Sogecore Insurance Managers Limited
          26 Cornet Street, St. Peter Port
          Guernsey, GY1 1LF, Channel Islands
          Fax: +44 1481 259 883
          E-mail: enquiries@waltonscheme.com

The Scheme Voting Form and form of proxy when submitted by fax
or E-mail, must be legible and an original executed copy or
copies must be received by the company within 3 Business Days of
the date of electronic submission.

If the forms are not returned, the chairman has discretion to
accept them if handed to him at the creditors' meeting.

The Scheme Voting Form, form of proxy, an electronic (CD-ROM)
copy of the Scheme and Explanatory Statement, as required by
Section 100 of the Companies Act 1981 of Bermuda, as well as all
other documents in relation or ancillary thereto have been sent
to all known potential scheme creditors.  Further copies of
these documents and all other documents in relation or ancillary
thereto may be obtained from the company's Web site at
http://www.waltonscheme.com/

The Court orders the Chairman of Creditors' Meeting, John
McKenna, to submit a report on the results of the Creditors'
Meeting.  The company has obtained directions from the Supreme
Court of Bermuda that Scheme creditors' votes will be calculated
by the Chairman without deduction for the value of any Security
Interest held by these creditors.

The Scheme of Arrangement, if approved at the Creditors'
Meeting, will not come into force unless it is sanctioned by
order of the Court at a hearing, which is expected to take place
in May 2007, and an office copy of the order sanctioning it is
delivered for registration to the Registrar of Companies in
Bermuda.

All Scheme Creditors are entitled to attend the sanction hearing
in person or by counsel to support or oppose the approval and
sanction of the Scheme.


WARNER CHILCOTT: Reduces Interest Rate on Existing Facility
-----------------------------------------------------------
Warner Chilcott Limited completed an amendment to its credit
agreement dated Jan. 18, 2005.  Effective immediately, the
interest rates on the Company's term loans under the credit
agreement were reduced by .25% to LIBOR plus 2.00% for LIBOR
rate loans and ABR plus 1.00% for Base Rate loans.  At
Dec. 31, 2006, the company had US$1.16 billion of term loans
outstanding under the credit agreement.

Headquartered in Hamilton, Bermuda, Warner Chilcott Ltd. --
http://www.warnerchilcott.com/-- is the holding company for a
host of pharmaceutical makers.  Women's health care products,
including hormone therapies (femhrt and Estrace Cream) and
contraceptives (Estrostep, Loestrin, and OvCon), are the
company's largest segment.  Other products include dermatology
treatments for acne (Doryx) and psoriasis (Dovonex and
Taclonex).  US subsidiary Warner Chilcott, Inc. makes
prescription drugs for dermatology and women's health; other
subsidiaries provide services in data management systems,
pharmaceutical development, manufacturing, and chemical
development.

                        *    *    *

Standard & Poor's Ratings Services raised on Sept. 27, 2006, its
ratings on Warner Chilcott Corp.  The corporate credit rating
was raised to 'B+' from 'B'.  At the same time, the ratings were
removed from CreditWatch, where they were placed with positive
implications on June 13, 2006, following the company's
announcement that it was planning an IPO, with the bulk of
proceeds to be used for debt reduction.  The rating outlook is
stable.

Moody's Investors Service revised on Oct. 9, 2006, the rating
outlook on Warner Chilcott Company, Inc., and related entities
to positive from stable, and affirmed the existing ratings,
including the B2 corporate family rating.  At the same time,
Moody's upgraded the speculative grade liquidity rating to SGL-2
from SGL-3.  In addition, Moody's withdrew the B1 senior secured
term loan rating on Warner Chilcott Holdings Company III,
Limited following the repayment of this tranche of debt.


WMG EUROPEAN: Proofs of Claim Filing Is Until Feb. 9, 2007
----------------------------------------------------------
WMG European Quantitative Fund Ltd.'s creditors are given until
Feb. 9, 2007, to prove their claims to Robin J. Mayor, the
company's liquidator, or be excluded from receiving any
distribution or payment.

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

Starvest Global's shareholders agreed on Jan. 17, 2006, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.

The liquidator can be reached at:

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




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


INTERMEC INC: Names Cisco Systems Alliance Partner of the Year
--------------------------------------------------------------
Intermec Inc. presented a special Alliance Partner of the Year
award to Cisco Systems at its Global Sales Summit.  Cisco
received the award for providing innovative wireless solutions
for Intermec customers around the world.

"The value of this long-standing partnership is the benefits it
brings to Intermec and Cisco joint customers," said Gary Jones,
vice president global channels.  "Together with the
applications, services and programs of our Honours Partners, we
deliver the unbeatable combination of Cisco's industry-leading
wireless infrastructure with the power and reliability of
Intermec's mission-critical data collection and mobile computing
systems to bring superior value to our customers.  We commend
Cisco on an award winning year."

Intermec's annual Global Sales Summit event is dedicated to
educating and energizing Intermec Honours Partners, direct sales
teams and strategic alliances, and providing a unique networking
opportunity for product education and solution selling.

Intermec Inc. -- http://www.intermec.com/-- develops,
manufactures and integrates technologies that identify, track
and manage supply chain assets.  Core technologies include RFID,
mobile computing and data collection systems, bar code printers
and label media.

The company has locations in Australia, Bolivia, Brazil, China,
France, Hong Kong, Singapore and the United Kingdom.

                        *    *    *

Standard & Poor's Rating Services raised its ratings on Everett,
Washington-based Intermec Inc. to 'BB-' from 'B+'.  The upgrade
reflects expectations that Intermec will sustain current levels
of profitability and leverage.  S&P said the outlook is stable.


INTERNATIONAL PAPER: Earns US$1.1 Billion in Full Year 2006
-----------------------------------------------------------
International Paper reported preliminary full-year 2006 net
earnings of US$1.1 billion compared with US$1.1 billion in 2005.  
The company posted fourth-quarter 2006 net earnings of US$2.0
billion compared with earnings of US$202 million in the third
quarter of 2006 and a loss of US$77 million in the fourth
quarter of 2005.  Amounts in all periods include special items,
and all periods presented now reflect the wood products and
beverage packaging businesses, along with the kraft papers and
Brazilian coated papers businesses, as discontinued operations.

Full-year 2006 earnings from continuing operations and before
special items were US$635 million, compared with US$329 million
in the 2005 full year.  Earnings from continuing operations and
before special items in the fourth quarter of 2006 were US$211
million, compared with US$196 million in the third quarter and
US$18 million in the fourth quarter of 2005.

Quarterly net sales were US$5.3 billion for the quarter, down
slightly from US$5.4 billion in the third quarter and US$5.5
billion in the fourth quarter of 2005.  Annual net sales were
US$22 billion in 2006 compared with US$21.7 billion in 2005.

Operating profits for the fourth quarter were US$418 million,
compared with operating profits of US$657 million in the third
quarter of 2006.  Excluding special items, operating profits
were US$546 million in the fourth quarter versus US$644 million
in the third quarter, mainly due to lack-of-order downtime and
operating issues at specific mills.  Full-year 2006 operating
profits were US$2.1 billion versus US$1.6 billion in 2005.

"International Paper delivered solid fourth-quarter results,"
said International Paper Chairman and Chief Executive John
Faraci.  "Prices remained strong, inventory levels are in good
shape, and cost controls continued to produce results. We saw
some upside from lower interest expense and fewer shares
outstanding. Significant debt reduction and our share repurchase
program strengthened our balance sheet and returned value to
shareowners.  However, as is typical, volumes were seasonally
slower.  We also saw our operations affected by lack-of-order
downtime, planned maintenance outages and the impacts of capital
projects in our North American and Brazilian paper businesses."

Mr. Faraci continued, "Year over year, we saw strong gains in
pricing, volume, cost and mix in 2006, and delivered our best
performance since 2000.  We achieved approximately US$330
million in profit improvement, which boosted our earnings per
share by about 56 cents. While we are not satisfied with the
absolute level of earnings, we are encouraged by the continued
supply/demand balance in our North American uncoated papers and
industrial packaging businesses, the strength in our global
papers business, and the progress we made in our transformation
plan.  We are well positioned to continue building on these
gains in 2007."

Commenting on the first quarter of 2007, Mr. Faraci said, "We
expect volumes to improve slightly in the first quarter, the
result of seasonal improvements in our container and printing
papers businesses, but expect some of that to be offset by
slightly higher input costs.  Timber harvest revenues will also
drop off next year, now that we've completed the sale of most of
our U.S. forestlands."

Mr. Faraci added, "Our priorities in 2007 are to significantly
improve our profitability and returns and continue to return
value to shareowners.  We're targeting US$400 million in
improvements to our existing businesses, and expect to deliver
about US$165 million in operating earnings this year from recent
selective reinvestments in Brazil and China.  We also remain
committed to returning value to shareowners.  We currently have
an open-market plan in place to buy back shares and plan to
repurchase up to US$1.6 billion of our stock by year-end."

Fourth-quarter segment operating profits and business trends
compared with the third quarter of 2006 are:

Printing Papers operating profits were US$62 million, or US$190
million excluding special items, down from the third quarter's
record operating profits of US$249 million, due to lower North
American volumes that more than offset some modest volume
increases in Europe and Brazil; higher operating costs related
to lack-of-order downtime in North America and planned
maintenance outages in North America, Europe and Brazil; as well
as the impact of spending related to other planned upgrades and
conversions.

Industrial Packaging operating profits were US$122 million in
the fourth quarter, compared with US$138 million in the third
quarter, or US$125 million excluding special items.  The slight
decrease reflects slightly lower volumes, higher manufacturing
expense and higher input costs.

Consumer Packaging operating profits were US$28 million in the
fourth quarter, down from US$48 million in the third quarter due
primarily to a one-time non-cash charge related to Shorewood
Packaging, as well as lower volumes and mill operating issues.

The company's distribution business, xpedx, reported record
fourth-quarter operating profits of US$31 million compared with
operating profits in the prior quarter of US$34 million, due to
seasonal slowdown.

Fourth-quarter Forest Products operating profits of US$162
million were generally flat with third-quarter operating profits
of US$166 million. Higher real estate sales were offset by lower
recreational and harvest revenues following the completion of
the sale of 5.1 million acres of U.S. forestlands in the fourth
quarter.

Net corporate expenses totaled US$166 million for the quarter,
down from US$221 million in the third quarter, reflecting
favorable year-end adjustments of full-year LIFO and other
benefits-related charges.

The effective tax rate from continuing operations and before
special items for the fourth quarter of 2006 was 28%, unchanged
from third quarter, bringing the 2006 estimated full-year rate
to 29%.  The 2005 full-year tax rate was 20 percent, reflecting
favorable adjustments from the finalization of prior period
income tax audits.

Discontinued operations include the operating results of the
kraft papers, Brazilian coated papers, wood products and
beverage packaging businesses.  During the fourth quarter of
2006, International Paper announced the signing of a definitive
agreement to sell its beverage packaging business for
approximately US$500 million, subject to certain adjustments and
conditions at closing.  Additionally, the company announced two
separate definitive agreements for the sale of 13 lumber mills
for approximately US$325 million and five wood products plants
for approximately US$237 million, both subject to various
adjustments and conditions at closing.  Net pre-tax charges of
US$18 million (US$11 million after taxes) for the beverage
packaging business and US$102 million (US$69 million after
taxes) for the wood products business were recorded in the
fourth quarter to adjust the carrying value of these businesses
based on these planned transactions.  Additionally, a US$38
million pre-tax credit (US$23 million after taxes) was recorded
during the quarter for refunds received from the Canadian
government of duties paid by the company's former Weldwood of
Canada Limited business, and a pre-tax charge of US$3 million
(US$2 million after taxes) was recorded for smaller adjustments
of prior discontinued operation estimates.  The net after-tax
effect of these items, including US$12 million of after-tax net
operating losses for these units in the fourth quarter, was a
charge of US$71 million, or US$0.16 per share.

In the 2006 third quarter, pre-tax charges of US$165 million and
US$115 million had been recorded to adjust the carrying values
of the wood products and beverage packaging businesses to their
then estimated fair values, and a US$101 million pre-tax gain
was recorded upon the completion of the sale of the Brazilian
coated papers business. Additionally, pre-tax charges of US$16
million and US$101 million had been recorded in the 2006 second
and first quarters relating to the pending sale of the kraft
papers business.

Special items in the fourth quarter of 2006 included a pre-tax
gain of US$4.4 billion (US$2.7 billion after taxes) from sales
of U.S. forestlands included in the company's transformation
plan, a charge of US$759 million (before and after taxes) for
the impairment of goodwill in the company's coated paperboard
and Shorewood Packaging businesses, a US$128 million pre-tax
impairment charge (US$84 million after taxes) to reduce the
carrying value of the fixed assets of the company's Saillat,
France, mill to estimated fair value, a US$111 million pre-tax
charge (US$69 million after taxes) for restructuring and other
corporate charges, a US$6 million pre-tax credit (US$4 million
after taxes) for interest received from the Canadian government
on refunds of prior-year softwood lumber duties, a US$21 million
pre-tax charge (zero after taxes) relating to smaller asset
sales and a US$5 million pre-tax credit (US$3 million after
taxes) for reductions of reserves no longer required.  
Restructuring and other corporate charges included a US$34
million charge (US$21 million after taxes) for severance and
other charges associated with the company's transformation plan,
a gain of US$115 million (US$70 million after taxes) for
payments received in the fourth quarter relating to the
company's participation in the U.S. Coalition for Fair Lumber
Imports, a charge of US$157 million (US$97 million after taxes)
for losses on early debt extinguishment, a US$40 million charge
(US$25 million after taxes) for increases to legal reserves, and
a US$5 million credit (US$4 million after taxes) for other
items.  In addition, a US$4 million tax expense was recorded in
the quarter.  The net after-tax effect of these special items
was a gain of US$1.8 billion, or US$4.06 per share.

Special items in the third quarter of 2006 included a pre-tax
charge of US$92 million (US$56 million after taxes) for
restructuring and other charges, a pre-tax credit of US$304
million (US$185 million after taxes) for gains on the sale of
U.S. forestlands included in the company's transformation plan,
a pre- tax gain of US$74 million (US$44 million after taxes) for
net gains on sales and impairments of businesses, and a US$4
million income tax adjustment.  The net after-tax effect of
these special items was a gain of US$0.35 per share.

Special items in the fourth quarter of 2005 included a pre-tax
charge of US$221 million (US$135 million after taxes) for
restructuring charges and other charges, a pre-tax charge of
US$46 million (US$30 million after taxes) for adjustments of
estimated losses on businesses sold or held for sale, a US$35
million pre-tax credit (US$21 million after taxes) for insurance
recoveries related to the hardboard siding and roofing
litigation, and a US$1 million credit for changes to previously
provided reserves.  In addition, a US$19 million net income tax
benefit was recorded in the quarter, reflecting a US$74 million
favorable adjustment from the finalization of the company's 1997
through 2000 U.S. federal income tax audit, a US$43 million
provision for deferred taxes related to earnings being
repatriated under the American Jobs Creation Act of 2004, and
US$12 million of other tax charges.  The net after-tax effect of
all of these special items was a charge of US$0.26 per share.

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: Gas Delivery to Argentina Delayed Due to Pipe Crack  
--------------------------------------------------------------
Bolivian state-run oil firm Yacimientos Petroliferos Fiscales de
Bolivia told dpa German Press Agency that the nation has to
defer natural gas deliveries to Argentina due to a crack in a
pipe.

Bolivia postponed about four million cubic meters of natural gas
deliveries.  The country usually sends 7.7 million cubic meters
of gas to Argentina daily, dpa German relates.

According to dpa German, the pipe broke after heavy rain in the
pumping station in San Jose de Pocitos, which is about 1,100
kilometers south of La Paz.

Technicians closed the valves of the pipe and are repairing the
crack, dpa German states.

                        *    *    *

Fitch Ratings assigned these ratings on Bolivia:

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




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


BANCO NACIONAL: Grants BRL15.8-Mil. Loan to Libbs Farmaceutica
--------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social aka BNDES
approved a BRL15.8 million financing for Libbs Farmaceutica
Ltda. to research and develop five new drugs -- four new oral
contraceptives and one therapeutic agent for hormone
replacement.  The resources, which are equivalent to 55.8% of
the total project amount of BRL28.4 million, will be released
under BNDES' Support Program for the Development of the
Pharmaceutical Productive Chain or Profarma.

The financial operation granted by BNDES will contribute to the
investment increase in technological innovation in Brazil and to
the increase of a national enterprise of the pharmaceutical
sector, thereby generating marketing differential and knowledge
gain.

Profarma, which was established in 2004, aims at contributing to
the creation of larger and more competitive national companies
in the sector.  In the period, BNDES has already approved
operations amounting BRL677 million, a growing value throughout
the last three years, and which resulted in BRL1.4 billion in
investments.  In 2004, it approved financings that total BRL54.2
million; BRL65 million in 2005 and BRL558 million in 2006.

The resources financed by BNDES to Libbs will be directed to the
purchase of specific equipment for analysis and development and
for clinical studies.  Libbs, which operates in the
pharmaceutical market, especially, in the gynecological,
cardiovascular, infectological, dermatological, muscle-skeletal,
dermatological, gastroenterological, pediatric and
neuropsychiatric fields, has been investing in innovation and
already had a physical infrastructure which is necessary to the
project execution, such as laboratories and industrial
facilities.

The new unit has a 480-million-tablet annual capacity, 8.6
million packages of hormone products and will meet all the
forecast needs, such as project maturity for 4.7 million
units/year.

The new products to be developed represent the continuity of its
strategy in operating in market niches that are identified as
medical needs that have not yet been met.

The pharmaceutical productive chain structure has 4 evolution
stages:

   -- research and development;
   -- pharmacochemical production;
   -- pharmaceutical specialty production; and
   -- marketing and commercialization of pharmaceutical
      specialties.

The incorporation of one of these stages, for an enterprise or a
country, means a big jump in the competitive barriers.  The
Large international enterprises of the pharmaceutical industry
operate in the 4 stages, and they are distributed in several
countries.  In Brazil, most of the subsidiaries of these
enterprises operate in the 3rd and 4th stage and a few of them,
in the 2nd stage.

The nationally controlled enterprises represent roughly 30% of
this market and only two of them are verticalized.  Libbs is one
of them and operates in the four evolution stages of the
pharmaceutical chain.

Established in 1958, when it started its drug production, Libbs
started operating in 1983 in the sale of raw and
pharmacochemical materials to the pharmaceutical industry.  Each
development sector, pharmacochemical and pharmaceutical, has
experienced influences throughout the last five years.

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/--


COMPANHIA DE BEBIDAS: Unit Inks Support Agreement with Lakeport
---------------------------------------------------------------
Companhia de Bebidas das Americas aka AmBev disclosed that its
subsidiary Labatt Brewing Company Limited has entered into a
Support Agreement with Lakeport Brewing Income Fund.  Under this
agreement, Labatt has agreed to offer a price of CAD28.00 per
unit of Lakeport for a total value of CAD201.4 million.

A take-over bid circular will be mailed to unit holders within
21 days starting on Feb. 1 and will contain the details of the
offer.

The Lakeport Board of Trustees will recommend that unit holders
accept Labatt's offer to acquire the Fund's units subject to
certain fiduciary obligations.

Miguel Patricio, President of Labatt Breweries/AmBev's Co-CEO
said, "I am pleased to announce this agreement with Lakeport.  
Labatt wishes to participate in the value brand segment of the
highly competitive Ontario beer market and we look forward to
building on Lakeport's success in this area.  This announcement
demonstrates our commitment to growing Labatt in Canada and
ensuring that our consumers have as much choice as possible
across all beer categories."

Teresa Cascioli, Lakeport CEO stated, "This Support Agreement
and eventual sale will enable the Lakeport brands to grow with
the marketing support and financial backing of Labatt.  I am
pleased to recommend this offer to our unit holders."

The transaction is subject to notification to the Competition
Bureau as is customary for transactions of this size.

                       About Lakeport

Lakeport is an Ontario-based brewery focused on producing value-
priced quality beer for the Ontario market.  Lakeport pioneered
the "24 for US$24" value segment.  Lakeport produces nine
proprietary beer brands, two of which, Lakeport Honey Lager and
Lakeport Pilsener, are amongst the top-selling brands in the
province.

                        About Ambev

Based in Sao Paulo, Brazil, AmBev -- http://www.ambev.com.br/  
-- is the largest brewer in Latin America and the fifth largest
brewer in the world.

AmBev's beer brands include Skol, Brahma and Antarctica.  AmBev
also produces and distributes soft drink brands such as Guarana
Antarctica, and has franchise agreements for Pepsi soft drinks,
Gatorade and Lipton Ice Tea.

AmBev has been present in Canada since 2004 through Labatt.
Founded in London, Ontario in 1847 and the proud brewer of more
than 60 quality beer brands, Labatt is Canada's largest brewery.

                        *    *    *

As reported in the Troubled Company Reporter on Sept. 4, 2006,
Moody's Investors Service upgraded to Ba1 from Ba2 the foreign
currency issuer rating of Companhia de Bebidas das Americas aka
AmBev to reflect the upgrade of Brazil's foreign currency
country ceiling to Ba1 from Ba2.  AmBev's global local currency
issuer rating of Baa3 and the foreign currency rating of Baa3
for its debt issues remain on review for possible upgrade.


COSAN SA: Moody's Takes No Action for Ba2 Global Currency Rating
----------------------------------------------------------------
Moody's is taking no action at this stage in relation to Cosan's
Ba2 global local currency and foreign currency ratings, as well
as its A1.br Brazilian national scale rating and stable outlook.  
This follows the company's announcement that it has entered into
an agreement to acquire common shares of Companhia Acucareira
Vale do Rosari, subject to the implementation of certain
conditions precedent.

Moody's notes there are a number of uncertainties related to
this transaction at this stage.  These uncertainties include,
most immediately, whether the transaction will be consummated
since it depends on several conditions precedent by Cosan as
well as the approval by CAVR shareholders.  If the transaction
goes through, other uncertainties relate to the final
acquisition price, which could vary significantly depending on
the percentage of the shares acquired.  Additionally, Cosan has
different options of how to finance this transaction, including
debt, equity or cash.

Cosan's ratings would come under negative pressure if free cash
flow remained negative at the end of its FY 2007 and if
Debt/EBITDA increased to above 4 times.  Moody's will continue
to monitor transaction developments.  A review of Cosan's
current ratings is possible once there is more certainty about
the closing and terms of the transaction.

Cosan S.A. Industria e Comercio, headquartered in Sao Paulo,
Brazil, is the third largest sugar producer and the second
largest ethanol producer in the world.  In 2006/2007 it crushed
more than 36 million tons of sugar cane in seventeen mills
located in the Central South region of Brazil.  During the six
month period ended on Oct. 31, 2006, Cosan presented sugar sales
of 1.7 million tons and ethanol sales of 629 million liters.


INTERNATIONAL PAPER: Closes Brazilian Assets Exchange with VCP
--------------------------------------------------------------
International Paper has completed its exchange of Brazilian pulp
and paper assets with Votorantim Celulose e Papel S.A.

As outlined in the agreement between the two companies signed in
September 2006, International Paper exchanged its in-progress
pulp mill project (with approximately US$1.15 billion in pre-
funded project costs) and about 100,000 hectares of surrounding
forestlands in Tres Lagoas, state of Mato Grosso do Sul, Brazil,
for VCP's Luiz Antonio uncoated paper and pulp mill and
approximately 55,000 ha of forestlands located in the state of
Sao Paulo, Brazil.

Going forward, VCP will complete the 1 million-metric-tonne pulp
mill in Tres Lagoas, and International Paper will build a
200,000-metric-ton uncoated paper machine on a site adjacent to
the mill, with an option to build a second similar machine in
the future.  The two parties have also negotiated a long-term
supply agreement whereby VCP will provide pulp, utilities and
other services to International Paper's Tres Lagoas operations
at market prices.

"This investment complements our global strategy, improving our
competitive position, while adding value to shareowners. The
project is immediately earnings accretive, with greater than
cost of capital returns, and doubles the EBITDA of our Latin
American business," said John Faraci, International Paper
chairman and chief executive officer.  "The Luiz Antonio mill is
a globally cost-competitive paper mill, and its addition to our
portfolio, along with our plans for the paper operations in Tres
Lagoas, significantly expands our uncoated freesheet capacity in
Latin America while providing growth opportunities in the
region."

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.


PETROLEO BRASILEIRO: Moves Launching of Re-Gasification Units
-------------------------------------------------------------
Jose Gabrielli, Brazilian state oil Petroleo Brasileiro SA's
chief executive officer, said in a seminar that the firm has
moved the launching of two liquefied natural gas re-gasification
units to July 2008 from 2009, Business News Americas reports.

According to BNamericas, Petroleo Brasileiro will construct two
floating storage and re-gasification units or FSRU:

          -- one in Rio de Janeiro with capacity for up to 14
             million cubic meters per day, and

          -- another in the port of Paca in Ceara with six
             million cubic meters per day capacity.

Mr. Gabrielli told BNamericas that Petroleo Brasileiro has
started preparing the licensing procedure for the Rio de Janeiro
FSRU.

Local press says that the FSRUs are expected to cost BRL385
million each.

Total investment in the liquefied natural gas import and re-
gasification program is expected at BRL5 billion.  It is part of
the federal government's growth acceleration program.  The
investment includes lease and operating costs of ships and
terminals, 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: Swapping Gas Exploration Areas with ONGC
-------------------------------------------------------------
Brazilian state-owned oil company Petroleo Brasileiro SA told
The Economic Times that it has started negotiations with Indian
firm Oil and Natural Gas Corp. aka ONGC on a possible exchange
of oil and gas exploration areas.

Petroleo Brasileiro said that it is evaluating offshore blocks
in India's Krishna-Godavari or KG Basin, which has large natural
gas potential, Dow Jones Newswires relates.

The Economic Times underscores that in return, ONGC would get
blocks in the Campos Basin off the coast of Rio de Janeiro,
Brazil, that have an equivalent value in the price of the oil or
gas to be sold from the blocks.

No date has been set for a deal, The Economic Times relates,
citing Petroleo Brasileiro.

According to The Economic Times, ONGC disclosed in January it
made new gas discoveries in the KG and the Mahanadi basins.

ONGC Chairperson R S Sharmaat told The Economic Times that the
firm was willing to offer a stake to a strategic partner like
Petroleo Brasileiro, ENI SpA and Norsk Hydro ASA to help it with
ultra-deep water drilling techniques.  

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.


SA FABRICA: Moody's Assigns B2 Foreign Currency Rating
------------------------------------------------------
Moody's Investors Service assigned a B2 foreign currency rating
to SA Fabrica de Produtos Alimenticios Vigor's proposed US$100
million senior unsecured notes.  Simultaneously, Moody's also
assigned a B2 corporate family rating.  This is the first time
Moody's has rated Vigor.  The outlook is stable.

The assigned B2 rating to Vigor's proposed US$100 million senior
unsecured notes is subject to completion of the transaction and
is based on the expectation that Vigor's level of secured debt
as a percentage of its total debt will be below 20% from the
second quarter of 2007 and onwards.

Vigor's B2 corporate family rating and stable outlook are
supported by the company's diversified product portfolio of
well-known brands, its leading positions in some niche
categories, as well as its business diversification into at
least four distinct segments that represent more than 10% of net
sales.  The rating is, however, constrained by its small size,
scale, loss of market share in some segments, and geographic
concentration in the Southeast region of Brazil.

Additionally, the rating recognizes the intense competition that
Vigor faces against its peers.

Utilizing the 16 factors cited in Moody's Global Packaged Goods
Industry rating methodology and Vigor's financial metrics for
the last twelve months ended September 30, the company's
corporate family rating maps to a B1, which is one notch higher
than its assigned B2 corporate family rating.

The one notch differential is explained by the company's
liquidity situation, as well as the uncertainties related to
Vigor's new strategic initiatives designed to address some
operating weaknesses that negatively affected Vigor's 2006
results.

Despite Vigor's relatively small size compared to its global
peers, the company has leading market share in some products and
a number of well known brands in the Brazilian market such as
Vigor, Leco, Danubio, Faixa Azul and others.  However, Vigor is
faced with strong competition in some of its product segments
from significantly larger and better capitalized multi-national
players such as Danone, Kraft, Unilever, Nestle and Bunge, as
well as domestic players such as Sadia and Perdigao.

Given the fierce competition that Vigor faced in some segments
such as margarines in 2006, as well as an overall decrease in
volumes sold and price reductions, the company experienced a
sharp decline in organic revenues of -13.4% for the first nine
months ended Sept. 30, 2006 versus the same period in 2005.  

Although Moody's notes that the company is taking a series of
new strategic initiatives including:

   -- expanding its distribution footprint and further
      diversifying into export markets;

   -- launching new innovative products; and

   -- reviewing its pricing and marketing plans.

Vigor's B2 rating recognizes the uncertain growth prospects
related to being able to successfully execute its growth
strategy.

With that said, Brazil's per capita consumption of many dairy
products that Vigor produces, such as milk and cheese, is still
relatively low compared to both developed countries and even
some of its peers in the emerging markets.  Also given the high
correlation of dairy products consumption and disposable income,
the dairy segment in Brazil should benefit from any continued
improvement in its economy that affects its population's
disposable income.

Due to Vigor's limited scale, its credit metrics can be
significantly more susceptible to slight variations in operating
performance or cash generation.

For the last twelve months ending in September 30th, 2006,
Vigor's Debt to EBITDA at 2.9 times, FFO/Net Debt at 21% and
RCF/Net Debt at 20% were consistent with the Baa category, while
its FCF/Debt of -8% and EBITA/Interest of 0.9 times fall in the
Caa category.  Going forward, Vigor's key credit metrics will be
largely dependent on its ability to successfully implement its
strategic initiatives to address competitive threats and deliver
an improvement in overall operating performance.

The outlook for Vigor is stable reflecting our expectation that
the company will be able to sustain its current market position
for most of its products while maintaining current EBITA margins
and being able to generate positive free cash flow at the end of
2007.

Vigor's rating could be considered for an upgrade if the company
is successfully able to deliver on its turnaround strategy while
improving its market position and delivering sustainable organic
revenue and EBITA margin improvement.  In terms of key credit
metrics, a review for upgrade would require Vigor to improve its
EBITA/Interest above two times and FCF/Debt to above 6% on a
consistent basis.

Negative pressure on Vigor's current rating would arise if the
company were to face continued weakening in operating
performance due to competitive pressures or a tightened
liquidity situation.  Quantitatively, Vigor's rating could come
under downward pressure if EBITA/Interest remains below one time
at the end of fiscal year 2007 or if free cash flow remains
significantly negative.

The Vigor Group, based in Sao Paulo, Brazil, and comprised of
S.A. Fabrica de Produtos Alimenticios Vigor (Vigor) and its
subsidiaries Dan Vigor and Leco, is a manufacturer of dairy and
vegetable oil products in Brazil.  The group produces markets
and sells a diverse range of products including: milk, yogurts,
dairy beverages, cheeses, deserts, butter, margarines and
mayonnaises.


TELEMAR: S&P Raises Corporate Credit Rating to BB+ from BB
----------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term
corporate credit rating on Brazil-based telecom service
providers Tele Norte Leste Participacoes SA and Telemar Norte
Leste SA, jointly referred to as Telemar, to 'BB+' from 'BB'.  
At the same time, Standard and Poor's revised its ratings on the
combined BRL300 million outstanding local debentures of Telemar
Participacoes SA in Brazil National Scale to 'brAA-' from
'brA+', and assigned o 'brAA-' rating to TmarPart's proposed
five-year BRL$250 million debentures.

The ratings were removed from CreditWatch where they had been
placed with positive implications on Feb. 28, 2006.  The outlook
on the corporate credit ratings is stable.  Total debt
outstanding at TNL amounted to approximately US$4.1 billion at
the end of September 2006.
      
"The upgrade reflects the consistent operational and financial
improvements achieved by Telemar during the past few years,
which has been partly supported by lower country risks
associated with the economic and business environment in which
the company operates," said Standard & Poor's credit analyst
Jean-Pierre Cote Gil.

Telemar has been able to consistently reduce its gross debt
levels, while cash generation remained strong despite the
generally negative trend of operating margins in the sector.  
While Standard and Poor's viewed positively the company's major
shareholders' attempt to execute a corporate restructuring,
which would result in the consolidation of TmarPart, TNL, and
TMAR into one entity, Standard and Poor's understand these were
not crucial to justify the upgrade.
     
Standard and Poor's view Telemar as strategically well
positioned to benefit from growth opportunities in the
constantly shifting telecom industry, as it operates in a vast
geographic area of Brazil.  It has  already demonstrated its
capacity to deploy new services from scratch  and offer bundled
services, while retaining sound liquidity to support its
significant level of annual capital expenditure requirements.
     
The stable outlook reflects Standard and Poor's view that,
despite the fierce competitive environment and rapidly shifting
technologies, Telemar will manage to sustain its leading
position within its service area.  This will be supported by its
diversified services portfolio, its clear strategic intention to
be one of the market consolidators, and the company's financial
strengths, including sound levels of liquidity and cash flow
generation.

The outlook could change to positive if the company is able to
continue delivering strong margins in an increasingly
competitive industry and we perceive a more conservative
financial policy regarding acquisitions.
     
Although the company has publicly stated its intention to
participate in the consolidation of the telecom sector in
Brazil, there are few merger and acquisition opportunities that
could significantly hit the company's financial risk profile,
and these would involve complex ownership structures, regulatory
impediments, and antitrust restrictions that reduce their
likelihood in the short term.  Such large potential M&A
activities are also likely to involve funding alternatives other
than pure leveraged transactions.
     
Nevertheless, Standard and Poor's may revise the outlook to
negative or even consider a downgrade if there is a material
shift in our expectations, which could emerge from a significant
change in the company's financial policies or a deterioration in
the competitive and economic environment affecting its
operations.




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


NOVA CHEMICALS: Fitch Downgrades Issuer Default Rating to BB-
-------------------------------------------------------------
Fitch has downgraded NOVA Chemicals Corp. ratings as:

   -- Issuer Default Rating to BB- from BB;

   -- Senior unsecured notes and debentures to BB- from BB;

   -- Senior unsecured revolving credit facility to BB- from BB;

   -- Senior secured revolving credit facility
      to BB+ from BBB-; and

   -- Retractable preferred shares to'BB+ from BBB-.

In addition, Fitch has assigned a BB- rating to the US$100
million senior unsecured revolving credit facility due Dec.
2007.  The ratings apply to approximately US$1.9 billion of
debt.  The Rating Outlook is Stable.

The downgrade reflects considerably weaker cash flow generation
from operations, higher interest expense, and modestly higher
net debt levels than expected in 2006.  Net cash flow from
operating activities and free cash flow were US$324 million and
US$49 million, respectively for the latest 12-months ending
Dec. 31, 2006.  These levels were significantly lower that
Fitch's expectations for 2006.

Gross interest expense increased by 34% to US$176 million in
2006 compared to 2005.  The increase was partially due to the
pre-funding of 2006 maturities of long-term debt, which was paid
in May 2006, as well as higher borrowing costs.  At
Dec. 31, 2006, total balance sheet debt was US$1.88 billion
compared to US$2.04 billion in the prior year.  Net debt, less
cash and cash collateral for the retractable preferred shares
held and included in other current assets, was US$1.73 billion.

Fitch views the substantial asset write-down of US$860 million
before tax of the company's Styrenix assets during the fourth
quarter of 2006 as a slightly negative to neutral credit event.  
The majority of the charge was non-cash, although it required
additional bank credit amendments to allow for the exemption of
any write-down of the Styrenix assets up to US$950 million in
the existing financial covenants under such agreements.  In
2006, NOVA Chemicals had total restructuring charges of US$985
million of which only US$78 million were cash charges.

The ratings incorporate NOVA Chemicals' low cost position, size
and earnings leverage from its Olefins and Polyolefins business.
Additionally, NOVA Chemicals' debt maturities are manageable
with its available liquidity.  The next maturity of long-term
debt comes due with the expiration of the total return swap for
the retractable preferred shares in March 2007. As result of the
US$72 million cash collateral, the notional amount of the total
return swap for the retractable preferred shares is
approximately US$126 million.  Market conditions remain
favorable and even though profitability for the industry may not
be as high as 2006, Fitch expects supply demand balances to
remain firm allowing producers to experience healthy margins in
2007.

The Stable Rating Outlook reflects Fitch's view of a favorable
operating environment in 2007 and into 2008 for ethylene and
ethylene derivatives.  NOVA Chemical's cash flow should improve
in the next 12 months-18 months allowing for some debt
repayment.  Coverage metrics are expected to improve year over
year.  Fitch will continue to monitor NOVA Chemicals'
restructuring program and expects there will be improvement to
the Styrenix business due to supply contract expirations and
ability to lower production costs by operating at higher
operating rates.

The company's leverage ratios have improved somewhat for the
latest 12-months (LTM) ending Dec. 31, 2006, compared to 2005
year-end primarily due to an increase in operating EBITDA.  NOVA
Chemicals had a total debt-to-operating EBITDA of 3.1 times and
total adjusted debt-to-operating EBITDAR, incorporating gross
rent, of 3.9x for the LTM ending Dec 31, 2006.  Funds from
operations adjusted leverage was 4.9 for the same period.  
Conversely, NOVA Chemicals' coverage ratios were modestly weaker
with operating EBITDA-to-gross interest expense and funds from
operations interest coverage was 3.4 and 2.7, respectively.  

The Stable Outlook reflects Fitch's expectations that credit
metrics will strengthen in 2007 and 2008, due to modestly higher
EBITDA and some debt repayment.

NOVA Chemicals Corporation is a multinational producer of
commodity chemicals, including ethylene, polyethylene, styrene,
and polystyrene.  The company generated EBITDA of US$604 million
on US$6.52 billion sales during the latest 12-months ending
Dec. 31, 2006.  A majority of its assets are located in Canada
and the US.  In North America, NOVA Chemicals is the fifth
largest producer of ethylene and polyethylene. The U.S. accounts
for 71% of sales, Canada accounts for 4%, Europe and rest of the
world accounts for 25%.  Polyethylene and styrenic polymers are
used in rigid and flexible packaging, containers, plastic bags,
plastic pipe, electronic appliances, housing and automotive
components, and consumer goods.




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


BANCO DEL CAFE: Davivienda to Issue New Debt to Fund Purchase
-------------------------------------------------------------
Banco Davivienda said in a statement that it aims to raise
COP260 billion in a new share issue designed partly to fund the
acquisition of Banco del Cafe aka Bancafe.

As reported in the Troubled Company Reporter-Latin America on
Nov. 8, 2006, a spokesperson of Banco Davivienda said that the
firm wanted to wrap up the purchase of Banco del Cafe in
November 2007.  Banco Davivienda won the auction of a 99% stake
in Banco del Cafe with a US$927 million bid.  Banco Davivienda
offered almost twice the minimum price set by the government and
about US$139 million more than what rival Banco de Bogota
offered.  Banco Davivienda will finance its acquisition of
Bancafe through a US$125-million bond issue and a US$175-million
capital increase.  The International Finance Corp. aka IFC said
that it will help Banco Davivienda in funding its purchase of
Bancafe.

Business News Americas relates that the acquisition of Bancafe
made Banco Davivienda the number one bank in mortgage and retail
lending and number three in terms of corporate loans in
Colombia.

Banco Davivienda said that it will offer 3,240,804 shares to
existing shareholders at COP80,227 each, BNamericas notes.

Sociedad Bolivar, Banco Davivienda's parent, told BNamericas
that it had signed a US$75-million accord with Credit Suisse to
capitalize the bank.

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


BANCOLOMBIA SA: Finance Superintendent Fines Firm for COP250MM
--------------------------------------------------------------
Colombia's Superintendent of Finance issued on Jan. 29, 2007,
Resolution No. 0129 that imposed a fine on Bancolombia SA for
COP250 million.  The fine was levied due to certain differences
on the interpretation of the calculation method applied to
measure Bancolombia's and Corfinsura's technical capital for the
year 2005.

Bancolombia said it will appeal this decision.

Bancolombia believes that the company and Corfinsura would have
maintained its solvency ratio over the minimum required by law,
during the mentioned period, even if the calculation had been
made under the interpretation of the Superintendent of Finance.

Headquartered in Medellin, Colombia, Bancolombia SA --
http://www.bancolombia.com.co-- operates as a commercial bank.
It organizes its activities into three primary divisions: Retail
and Small and Medium-Sized Enterprises (SMEs) Banking, Corporate
Banking, and Mortgage & Building Banking.  The bank offers
traditional banking products and services, like checking
accounts, saving accounts, time deposits, lending (including
overdraft facilities), mortgage loans, personal and corporate
loans, credit cards and cash management services.  It also
offers non-traditional products and services, like pension
banking, bancassurances, international transfers, fiduciary and
trust services, brokerage services and investment banking.

Bancolombia is Colombia's largest full-service financial
institution, formed by a merger of three leading Colombian
financial institutions.  Bancolombia's market capitalization is
over US$5.5 billion, with US$13.8 billion asset base and US$1.4
billion in shareholders' equity as of Sept. 30, 2006.
Bancolombia is the only Colombian company with an ADR level III
program in the New York Stock Exchange.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Jan. 2, 2007, Moody's Investors Service placed the D+ bank
financial strength rating of Bancolombia SA on review for
possible downgrade.  Bancolombia's foreign currency deposit
ratings were affirmed at Ba3/Not-Prime.


CA INC: Posts US$1 Bil. Revenue for Quarter Ended Dec. 31, 2006
---------------------------------------------------------------
CA, Inc., reported financial results for its third quarter of
fiscal year 2007, ended Dec. 31, 2006.

"I am pleased with our third quarter performance," said John
Swainson, CA's president and chief executive officer.  "We made
progress executing on our second half plan and recorded a solid
third quarter with significant growth in cash flow from
operations and total bookings.

"Overall, we are seeing healthy demand in the marketplace for
our Enterprise IT Management solutions and especially those
solutions we have acquired over the past two years," Mr.
Swainson said.  "Our customers continue to turn to us to help
them solve their most complex information technology management
and security issues.  Going forward, we will continue to focus
on superior execution and on becoming even stronger partners
with our customers."

Revenue for the third quarter was US$1 billion, an increase of
4% or 1% in constant currency, over the US$965 million reported
in the comparable period last year.  Aside from currency gains,
the increase in revenue primarily was attributed to growth in
subscription revenue, partially offset by declines in software
fees and other revenue, maintenance and financing fees.  Revenue
from professional services increased 11% over the prior year.  
Total North America revenue was up 4% while revenue from
international operations was up 3%, or down 3% in constant
currency.

Subscription revenue for the third quarter was US$773 million,
an increase of 8% or 5% in constant currency, compared with
US$717 million reported in the third quarter of last year.  The
increase primarily was due to growth in new deferred
subscription value from the sale of solutions in CA's Enterprise
Systems Management, Business Service Optimization and Security
Management business units, led by the sale of acquired products.  
Subscription revenue accounted for 77% of total revenue in the
quarter, up from 74% reported in the third quarter of fiscal
year 2006.

Total product and services bookings in the third quarter were
US$1.55 billion, up 65% from US$944 million in the prior year
period.  This increase was attributed in part to growth in sales
of new products and services, improved management of contract
renewals, the benefits achieved from the realignment of CA's
sales force earlier in the fiscal year and an increase in the
volume, length and dollar amounts of large contracts.  During
the quarter, the company renewed six license agreements valued
in excess of US$40 million for an aggregate value of
approximately US$472 million, with one contract valued at over
US$100 million.  The average contract length grew to 3.7 years
compared with 3.5 years during the prior year period due to an
improved process and greater discipline in evaluating the
financial implications of executing longer contracts.  In the
comparable period last year, the company renewed two contracts
each totaling more than US$40 million with an aggregate value of
approximately US$108 million.

Total expenses, before interest and taxes, for the third quarter
were US$907 million, compared with the US$910 million reported
in the prior year period.  On a constant currency basis,
expenses were down 3%.  The company experienced significantly
lower commission expenses associated with the company's revised
incentive compensation program.  This was offset in part by
costs associated with the delivery of professional services
commensurate with the increase in professional services revenue.  
On a non-GAAP basis, the company reported operating expenses of
US$791 million, which excludes restructuring, acquisition
amortization, and certain legal expenses and was up 2% from the
US$775 million reported in the comparable period last year and
slightly down on a constant currency basis.  

In the third quarter of fiscal year 2007, the company recorded
restructuring and other charges of approximately US$32 million,
of which US$14 million was related to severance costs and US$15
million was associated with the closure of facilities under the
fiscal year 2007 cost reduction and restructuring plan.  The
company continues to expect the total costs associated with the
2007 restructuring plan to be approximately US$150 million,
which will be recognized during the remainder of fiscal year
2007 and into fiscal year 2008.

The company recorded GAAP income from continuing operations of
US$52 million for the third quarter, or US$0.10 per diluted
common share, compared to income from continuing operations of
US$56 million, or US$0.09 per diluted common share, reported in
the prior year period. The improvement in GAAP earnings per
share reflects the reduced share count principally associated
with the completion of the company's US$1 billion share
repurchase in the second quarter of fiscal year 2007.

The company reported non-GAAP income from continuing operations
of US$133 million for the third quarter, or US$0.24 per diluted
common share, compared with US$146 million, or US$0.24 per
diluted common share a year earlier.

For the third quarter, CA generated cash flow from operations of
US$587 million, up 39% compared with US$422 million in cash flow
from operations reported in the prior year comparable period.  
Third quarter cash flow was affected positively by the higher
volume of bookings and associated billings and an increase of
approximately US$10 million in the aggregate amount of up- front
single installment contract payments over the comparable period
last fiscal year.  In addition, the third quarter positively was
affected by improved accounts receivable collections including
the early receipt of one payment of approximately US$46 million
scheduled for the fourth quarter of fiscal year 2007.

During the third quarter, restructuring payments were US$27
million, compared with restructuring payments of US$11 million
in the third quarter of fiscal year 2006.  Adjusting for these
payments, cash flow from operations was US$614 million, up 42%
from the prior year period.

The balance of cash and marketable securities at Dec. 31, 2006,
was US$1.8 billion.  With US$2.6 billion in total debt
outstanding, the company has a net debt position of
approximately US$743 million.

The company said it is continuing to evaluate its ongoing
performance, as well as market conditions, before making a
decision on the implementation of further stock repurchases.  
Year-to-date, CA has repurchased 51 million shares of common
stock at a cost of about US$1.2 billion.

               Outlook for Fiscal Year 2007


CA updated its outlook for the fiscal year and believes it will:

   * Exceed revenue guidance of US$3.9 billion;

   * Report GAAP earnings per share from continuing operations
     of US$0.26 to US$0.29 which includes estimated
     restructuring and other charges of approximately US$130
     million;

   * Report non-GAAP operating earnings per share of between
     US$0.83 and US$0.86, up from original guidance of US$0.83;
     and

   * Report cash flow from operations of US$900 million to US$1
     billion, consistent with its most recent guidance.  The
     company expects cash flow generation during the fourth
     quarter will be affected by significantly higher tax
     payments than in the fourth quarter of fiscal year 2006.
     
In addition, the company does not expect to realize further
improvements to accounts receivable collections in the fourth
quarter.

The company also anticipates total product and services bookings
to grow in the range of 12% to 15% for the full fiscal year as
it focuses on new product sales and continued discipline in its
contract renewal process.

Headquartered in Islandia, New York, CA Inc. (NYSE:CA) --
http://www.ca.com/-- is an information technology management
software company that unifies and simplifies the management of
enterprise-wide IT.  Founded in 1976, CA serves customers in
more than 140 countries.  In Latin America, CA has operations in
Argentina, Brazil, Chile, Colombia, Mexico, Peru and Venezuela.

                        *    *    *

As reported in the Troubled Company Reporter on Aug. 7, 2006,
Moody's Investors Service confirmed CA Inc.'s Ba1 senior
unsecured rating and assigned a negative rating outlook,
concluding a review for possible downgrade initiated on
June 30, 2006.  The Ba1 rating confirmation reflects the
company's completed accounting review and reestablishment of
current filing of its 10-K and subsequent 10-Q's, including the
company's filing of its 10-K for its March2006 fiscal year on
July 31, 2006.

Standard & Poor's Rating Services affirmed its 'BB' corporate
credit and senior unsecured debt ratings on CA Inc., and removed
them from CreditWatch where they were placed on July 5, 2006,
with negative implications.  S&P said the outlook is negative.


* COLOMBIA: Ports & Routes Upgrade to Boost Trade & Investment
--------------------------------------------------------------
Colombia believes that improvement of infrastructure in ports
and routes is necessary to expand trade & attract investments to
the Pacific coast, Fresh Plaza reports.

Fresh Plaza relates that about 46% of world trade goes through
the Pacific.

Colombia's Trade Minister Luis Guillermo Plata told reporters
that the government is collaborating with the Andean Promotion
Corp. for the funding of the expansion of a route between
Buenaventura -- the Colombian main port in the Pacific -- and
Buga city in Valle del Cauca departamento, western Colombia.  
Investments would also cover a port.  The Andean Promotion would
loan Colombia US$300 millions.

The private sector has to stimulate the interest for the Pacific
nations and share the changes in infrastructure that are needed
to develop trade and foreign investment, Fresh Plaza notes.

According to Fresh Plaza, Colombia is also expecting to join the
Asia Pacific Economic Cooperation or APEC Forum with the support
of Chile, a member of the organization.   

However, APEC issued 10 years ago a clause to avoid the addition
of more members, Fresh Plaza states.  

                        *    *    *

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




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


US AIRWAYS: America West Pilots Demand Fair, Single Contract
------------------------------------------------------------
Nearly two years after the new US Airways was created by the
announced merger of America West Airlines and US Airways, the
pilots of America West and US Airways have had enough of
management's lack of commitment to negotiating a fair, single
contract and are demonstrating their frustration by picketing in
front of their corporate headquarters.

There are still major gaps between the corporate promises made
to employees and the reality of how management behaves at the
negotiating table.  US Airways is posting record quarterly and
full-year profits, yet management is determined to force
bankruptcy-era concessions onto the pilots.  Such an agreement
is not acceptable to either pilot group, both of which are
represented by the Air Line Pilots Association or ALPA,
International.

A single contract would be a significant step toward completing
the America West-US Airways merger and combining the two
airlines, making it easier for passengers traveling on US
Airways. Management at US Airways instead chose to focus its
energy on pursuing yet another merger (that has since been
rescinded), causing the pilots to seriously question their
ability to effectively run two operations, let alone three.

"There's no doubt that the quality of operations has
deteriorated due to management's lack of focus in combining the
two airlines," said Captain John McIlvenna, chairman of the
America West Master Executive Council.  "The sacrifices of
labor, specifically the pilots of America West and US Airways,
have enabled the new airline to succeed and post a considerable
profit for 2006.  Management has rewarded themselves with
raises, bonuses and stock options and pursued a billion-dollar
deal at the expense of the company, its employees, and our
passengers."

"The US Airways and America West pilots have committed billions
through massive concessions that were used to fund the recovery
and renaissance of our airline.  Yet, we continue to be paid
wages that are at the bottom our industry while we participate
in fruitless negotiations," said Captain Jack Stephan, chairman
of the US Airways Master Executive Council.  "It is unfortunate
that our passengers are also forced to deal with management's
whitewashing of the promise of a single carrier, and must endure
the travel frustrations created from operating two airlines
under one banner."

Joint negotiations with US Airways management for a single, fair
pilot contract have been ongoing for more than one year.  Both
pilot groups remain focused on the issue of achieving a fair
single contract, one that is commensurate with US Airways'
position in the marketplace.

                      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.


* COSTA RICA: State Bank Posts CRC38.4 Billion 2006 Net Profits
---------------------------------------------------------------
Costa Rican state-run Banco Nacional de Costa Rica's net profits
increased 17% to CRC38.4 billion in 2006, compared with 2005,
Business News Americas reports.

BNamericas relates that Banco Nacional's performing loans grew
20% to CRC904 billion in 2006, compared with 2005.  Investments
in securities rose 11% to CRC829 billion.

According to BNamericas, Banco Nacional's assets increased 11%
to CRL2.20 trillion in 2006, compared with 2005.  Interest
bearing liabilities fell 2% to CRC1.45 trillion, while non-
interest bearing liabilities grew 61% to CRC557 billion.

The report says that Banco Nacional's shareholder equity
increased 25% to CRC193 billion in 2006, compared with 2005.

Conglomerado Financeiro Banco Nacional de Costa Rica is
Banco Nacional's parent company.  Statistics from the bank
regulator indicated that Conglomerado Financeiro had CRC2.23
trillion assets as of Sept. 30,2006, BNamericas states.

                        *    *    *

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




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


CLOROX CO: Deficit Narrows to US$MM in Qtr. Ended Dec. 31, 2006
---------------------------------------------------------------
The Clorox Co. disclsoed that solid sales growth and higher
gross margin contributed to strong operating results for the
company's fiscal second quarter, which ended Dec. 31, 2006.

"I'm pleased with our second-quarter results," said Chairman and
CEO Don Knauss.  "We drove strong sales growth in two of our
three business segments, grew gross margin and delivered EPS
results above our outlook range for the quarter.

"Importantly, we remain committed to achieving our financial
targets for the full fiscal year, and work is under way to
refresh our corporate strategy as we set sights on the company's
2013 centennial.  I look forward to sharing our plans this
spring for continuing to drive the long-term growth and value of
the company."

                 Second-quarter highlights

Clorox reported second-quarter net earnings of US$96 million, or
62 cents per diluted share.  Net earnings included a tax benefit
of US$5 million, or 3 cents per diluted share, related to the
sale of the company's residual assets in a Brazilian subsidiary.  
Clorox discontinued its operations in Brazil in fiscal year
2003.  The company reported second-quarter earnings from
continuing operations of US$91 million, or 59 cents per diluted
share.  This compares with US$83 million in the year-ago
quarter, or 55 cents per diluted share, for an increase of 4
cents per diluted share.  EPS results in the current quarter
reflected the benefit of higher sales and gross margin
improvement.

Second-quarter sales grew 3% to US$1.10 billion, compared with
US$1.06 billion in the year-ago quarter.  Volume declined 1%,
driven by the continued impact of price increases taken in early
calendar year 2006, as anticipated.  In addition, shipments of
Gladr trash bags and some laundry and home-care products were
also impacted by aggressive competitive activity.  Sales growth
outpaced the change in volume primarily due to the pricing
impact.

Gross margin in the second quarter increased 100 basis points
versus the year-ago quarter to 42%.  This increase was primarily
due to the benefit of cost savings and price increases,
partially offset by cost increases for commodities,
manufacturing and logistics.

Net cash provided by operations in the second quarter was US$122
million, compared to US$142 million in the year-ago quarter.  
The year-over-year decrease was primarily due to the timing of
tax payments and cash provided by discontinued operations in the
year-ago quarter.

During the quarter, Clorox repurchased about 1.1 million shares
of the company's common stock at a cost of about US$69 million,
under its ongoing program to offset stock option dilution.

        Second-Quarter Results By Business Segment

            Household Group -- North America

The segment reported a 2% sales decline, 5% volume decline and
9% decrease in pretax earnings.  Aggressive competitive activity
resulted in lower shipments of some household products,
including Clorox disinfecting wipes and Clorox 2 color-safe
bleach.  Also contributing to the segment's volume results were
the impact of price increases on Clorox bleach and auto-care
products, as consumers adjusted to higher retail prices.  The
variance between changes in sales and volume was primarily due
to the impact of price increases.  Pretax earnings reflected the
impact of higher commodity costs, unfavorable product mix, lower
sales and increased transportation costs.  These factors were
partially offset by the benefits of cost savings and the pricing
impact.

                       Specialty Group

The segment reported 8% sales growth, flat volume and a 30%
increase in pretax earnings.  The segment delivered all-time-
record shipments of Fresh Step scoopable cat litter for the
third consecutive quarter behind a significant product
improvement, as well as higher shipments of Kingsfordr grilling
products due to a product improvement and favorable December
weather.  These results were offset by lower shipments of Glad
products, particularly trash bags, due to intense competitive
activity and the ongoing impact of early calendar year 2006
price increases.  Sales growth outpaced the change in volume
primarily due to the pricing impact. Pretax earnings reflected
the benefit of higher sales, cost savings and favorable product
mix, partially offset by higher commodity costs and energy-
related manufacturing and transportation costs.

                       International

The segment reported 9% sales growth, 10% volume growth and a 3%
increase in pretax earnings.  Volume growth was driven by
increased shipments of home-care products in Argentina and
Mexico. Pretax earnings reflected the benefit of price increases
and higher sales, substantially offset by increased commodity
costs and marketing spending to support new cleaning products in
certain markets.

                          Outlook

For fiscal 2007, Clorox continues to anticipate sales growth
within its previously communicated long-term target range of 3-
5%.  The fiscal year outlook includes the impact of the
previously announced acquisition of Colgate-Palmolive company's
bleach business in Canada and Latin America.  The company now
anticipates the acquisition to reduce diluted earnings per share
by about 2 cents in the second half of the fiscal year.  In
addition, fiscal 2007 outlook continues to include about 8-9
cents diluted EPS of transition and restructuring costs
associated with the previously announced IT services agreement.
The company's tax rate for the fiscal year is anticipated to be
in the range of about 35%, versus 32% in fiscal 2006, with some
anticipated variability among quarters.  The company anticipates
that its third- and fourth-quarter tax rates will range around
34 to 36%, possibly slightly higher than 36% in the fourth
quarter.  The anticipated year-over-year increase in tax rate is
primarily due to lower expected tax-settlement benefits versus
fiscal 2006.  Net of these factors, the company now anticipates
fiscal 2007 diluted EPS from continuing operations in the range
of US$3.20-US$3.28.  This updated outlook includes the
aforementioned 2-cent impact from the acquisition of the bleach
business.

For the third quarter, the company continues to anticipate sales
growth in the range of 3-5% and diluted EPS in the range of 74-
80 cents.  Volume growth may outpace sales growth due to
anticipated higher spending to support brands facing competitive
pressure.  To help recover higher costs, the company increased
prices on Kingsford charcoal products, effective January 2007.  
The third-quarter outlook also includes 3-4 cents diluted EPS of
incremental impact from transition and restructuring costs
associated with the IT services agreement.

The company's initial fourth-quarter outlook is for sales growth
in the range of 3-5% and diluted EPS in the range of US$1.10 to
US$1.16.  This outlook anticipates solid gross margin growth and
lower selling and administrative expenses, compared to the year-
ago quarter.  The year-ago quarter included compensation expense
related to a voluntary review of the company's historical stock
option practices, and costs related to the retirement of the
former chairman and CEO from his positions.

Headquartered in Oakland, California, The Clorox Company --
http://www.thecloroxcompany.com/-- provides household cleaning
products and reaches beyond bleach.  Although best known for
bleach (leader worldwide), Clorox makes laundry and cleaning
items (Formula 409, Pine-Sol, Tilex), cat litter (Fresh Step),
car care products (Armor All, STP), the Brita water-filtration
system (in North America), and charcoal briquettes (Kingsford).

In Latin America, Clorox has manufacturing facilities in Costa
Rica, Dominican Republic, Panama, Peru and Colombia, among
others.

At Dec. 31, 2006, Clorox's balance sheet showed total assets of
US$3,624 million and total liabilities of US$3,657 million
resulting in a stockholders' deficit of US$33 million.  The
company reported a stockholders' deficit of US$156 million at
June 30, 2006.


FREESTAR TECH: Unit Achieves Services Provider Certification
------------------------------------------------------------
China UnionPay Ltd. has certified Rahaxi Processing Oy., a
wholly owned subsidiary of FreeStar Technology Corp. as its
third party service provider.  This allows Chinese visitors to
use their CUP credit and debit cards during their visits to
Europe.

The certification means European bank acquirers will process CUP
transactions at their merchant terminals and at their ATM's.

Angel Pacheco, vice president of business development of
FreeStar Technology, said, "I believe the entrance of the CUP
brand into the world market to be one of the most important
events in the payment industry.  With an upsurge in economic
growth in China coupled with the ability of the Chinese people
to travel and spend abroad, we are tapping into a new source of
revenue for the western markets; therefore we at FreeStar
Technology invite all acquirers that share our vision on this
subject to join the project and become part of the network."

FreeStar Technology noted that, as a result of years of work and
significant investment in engineering and resources, Rahaxi
Processing has put together a system that is extremely flexible
and exposes a reliable and comprehensive interface to the
acquiring community.  This lowers their barrier of entry to
accept CUP cardholders at their merchant locations and provides
a low-cost solution with fast time to market to guarantee an
excellent return on investment.

According to Chinese government statistics and Nielsen Reports,
Chinese tourists and business travelers stay an average of four
days in Europe and spend on average more than 2,400 euros.  
Typically, these visitors have prepaid their hotel bills, so
their expenditures are largely for meals and shopping.

The acquirers already enrolled and the ones in current
negotiations with Rahaxi Processing for the use of the gateway
account for hundreds and thousands of merchant point of sale and
ATM locations in: Ireland, UK, France, Italy, Greece, The
Netherlands, Finland, Romania, Ukraine and Czech Republic.

Paul Egan, chief executive officer of FreeStar Technology, said,
"By achieving the certification of our gateway to CUP, we
believe that we have brought value to all parties involved in
the acceptance of CUP cards as a method of payment.  The
cardholder benefits by being able to use their cards at more
locations; the merchant has access to wealthy foot traffic; the
acquirer sees new forms of revenue by acquiring the CUP
payments, but also by having a competitive edge in merchant
acquisition with this new offering."

Paul Warren, European sales director said, "Certification
strengthens Rahaxi Processing's relationship with CUP and
enhances its position as an expert in meeting the needs of
European and Chinese businesses.  Certification will contribute
to boosting the company's expected revenue growth."

FreeStar Technology Corp. -- http://www.freestartech.com/--   
is a payment processing company.  Its wholly owned subsidiary
Rahaxi Processing Oy, based in Helsinki, is a robust Northern
European BASE24 credit card processing platform.  Rahaxi
currently processes in excess of 1 million card payments per
month for those companies as Finnair, Ikea, and Stockman.
FreeStar is focused on exploiting a first-to-market advantage
for its Enhanced Transactional Secure Software, which is a
software package that empowers consumers to consummate
E-commerce transactions with a high level of security using
credit, debit, ATM (with PIN), electronic cash or smart cards.
The company, based in Dublin, maintains satellite offices in
Helsinki, Santo Domingo, Dominican Republic, and Geneva.

                    Going Concern Doubt

As reported in the Troubled Company Reporter on Oct. 16, 2006,
Russell Bedford Stefanou Mirchandani LLP expressed substantial
doubt about FreeStar Technology Corp.'s ability to
continue as a going concern after auditing the Company's
financial statements for the fiscal year ended June 30, 2006.
The auditing firm pointed to the Company's difficulty in
generating sufficient cash flow to meet it obligations and
sustain its operations.


* DOMINICAN REPUBLIC: State Firm Inks Pact with Puerto Plata
------------------------------------------------------------
Puerto Plata Electric Co. aka CEPP received a 12-year contract
from the former administration of the Dominican Corporation of
State-owned Electricity Enterprises for 50 megawatts of power,
under the Madrid Accord, DR1 Newsletter reports.

DR1 relates that the contract served as payment for the final
two years of a previous accord.

The state would be released from the former contract, Diario
Libre notes, citing the Renegotiating Commission.  EdeNorte
would hold the new contract.

Dr1 says that under the former contract, CDEEE was obliged to
buy electricity from CEPP at US$0.129 per kilowatt-hour.  
However, the price decreased to US$0.119 when the Madrid Accord
was signed.

The Renegotiating Commission is seeking to reduce the price of
to 8.9 US dollar cents per kilowatt-hour, DR1 states.

                        *    *    *

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: Reduces Foreign Debt Service in Proposed 2007 Budget
---------------------------------------------------------------
Ecuador's President Rafael Correa has reduced the amount for
foreign debt service to US$2.7 million in his budget proposal
this year, from US$3.8 million last year.

The US$2.7 million allocated for debt payment is 28% of the
US$9.8 billion budget for this year, Ecuadorian finance minister
Ricardo Patino told The Financial Times.  However, the
government's priority would be social spending.  The debt
restructuring was irreversible.

President Correa promised when he took office last month to
renegotiate Ecuador's US$16.8 billion foreign debt and direct
resources to programs for the poor, causing the deterioration of
the country's global bonds.  

The new budget for debt servicing, along with the government's
threat of not paying its debt, has also increased fears of
default.  

Banco del Pichincha, the biggest private bank in Ecuador, told
The Financial Times that fears of default were behind figures
released on Jan. 31, which indicated that deposits increased in
January 2007 at about half the rate of January 2006.

Moody's Investor Service also downgraded Ecuador's debt rating.  
Moody's was worried that the government may follow through with
its threatened default.

However, the Ecuadorian government told Bloomberg that the
budget set for debt service was enough to cover all obligations
coming due.

The Financial Times relates that Ecuador has emphasized that it
is seeking a friendly restructuring but President Correa refused
to clarify his intentions.  

As reported in the Troubled Company Reporter-Latin America on
Feb. 2, 2007, Ecuadorian dollar bonds of 10% due 2030 recorded
its biggest gain three months after the Minister Patino
disclosed that the government may request for a "friendly"
renegotiation of foreign debt, which 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.  

According to Bloomberg, President Correa said that he may not
pay all of the government's US$10 billion in foreign debt to
free up funds for health care and education.

Minister Patino told Bloomberg that the government may only pay
40 cents on the dollar of its foreign debt.  He said, "Foreign
debt service is included, as long as we don't make any
modifications.  This is a responsible government.  We're simply
lowering spending on debt servicing, and we're simply increasing
spending on social and productive investment."

The Wall Street Journal then thinks that a default in debt may
happen.

Minister Patino told The Financial Times, "We reserve the right
to pay or not to pay these obligations.  Our commitment will be
to pay on time salaries, education and health.  We are going to
pay them what we owe them so we can tell them that we will only
comply, as members of the IMF, with informing them once a year
on the evolution of the [Ecuadorean] economy.  We will not have
quarterly visits, or revisions of any kind, much less... demands
on economic policy."

Meanwhile, Guillermo Nielsen, Argentina's former finance
secretary who was involved in his nation's negotiations on its
US$100 billion debt restructuring, told The Financial Times,
"Default is not the solution for Ecuador.  Their ratio of debt-
to-GDP (Gross Domestic Product) is less than 30%, whereas in the
case of Argentina it was above 100%.  My recommendation was that
they take it easy, not jump into a restructuring without really
having an exit strategy."

Ecuador would pay off its debts to the IMF in the next few days
as part of a policy of reducing dependence on multilateral
lenders, The Financial Times reports, citing Minister Patino.

Ecuador will pay a US$135-million interest payment to debt-
holders on Feb. 15.

The budget for public spending this year decreased to US$9.77
billion, compared with US$10.2 billion last year, Minister
Patino told reporters.  The spending plan is 14% higher than the
government's initial budget proposal for 2006.

The government may not follow the spending plan in the budget,
the Associated Press relates, citing Minister Patino.

Minister Patino told AP, "I'm going to stop paying the debt
servicing on central bank bonds from the first day, even though
they are in the budget."

According to AP, Minister Patino was referring to a US$1.3-
billion bond the government sold in 2000 to repay the central
bank after it helped the weakening banking system.

The budget proposal was passed to Congress.

Ecuador also confirmed to The Financial Times that it refuses to
recognize US firm Occidental Petroleo Corp.'s US$1-billion claim
against the government for the termination of its contract in
2006 and confiscation of its assets.  Occidental started
arbitration proceedings at the International Center for
Settlement of Investment Disputes in Washington.  

Ecuadorian energy minister Alberto Acosta told The Financial
Times that the case was unacceptable because Ecuador had not
agreed to it.

                        *    *    *

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-'.




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


CONTINENTAL AIRLINES: Reports January Operational Performance
-------------------------------------------------------------
Continental Airlines reported a January consolidated (mainline
plus regional) load factor of 76.3%, 0.4 points above the
January 2006 consolidated load factor, and a mainline load
factor of 76.8%, 0.4 points above the January 2006 mainline load
factor.  Both load factors were records for the month.  In
addition, the carrier reported a domestic mainline load factor
of 78.1%, 0.2 points below January 2006, and an international
mainline load factor of 75.3%, 1.1 points above January 2006.

During the month, Continental recorded a U.S. Department of
Transportation on-time arrival rate of 74.3% and a January
mainline completion factor of 99.6%.

In January 2007, Continental flew 7.0 billion consolidated
revenue passenger miles and 9.2 billion consolidated available
seat miles, resulting in a traffic increase of 5.9% and a
capacity increase of 5.5% as compared with January 2006.  In
January 2007, Continental flew 6.3 billion mainline RPMs and 8.2
billion mainline ASMs, resulting in a mainline traffic increase
of 6.2% and a 5.6% increase in mainline capacity as compared
with January 2006.  Domestic mainline traffic was 3.4 billion
RPMs in January 2007, up 4.8% from January 2006, and domestic
mainline capacity was 4.3 billion ASMs, up 5.1% from January
2006.

For January 2007, consolidated passenger revenue per available
seat mile is estimated to have increased between 2.0% and 3.0%
compared with January 2006, while mainline passenger RASM is
estimated to have increased between 3.5 and 4.5% compared with
January 2006.  For December 2006, consolidated passenger RASM
increased 4.1% compared with December 2005, while mainline
passenger RASM increased 6.2 percent from December 2005.

January 2007 sales at continental.com increased 17% over January
2006.

Continental's regional operations had a January load factor of
72.3%, 0.4 points below the January 2006 load factor. Regional
RPMs were 759.7 million and regional ASMs were 1,050.4 million
in January 2007, resulting in a traffic increase of 3.6% and a
capacity increase of 4.2% versus January 2006.

Continental Airlines is the world's fifth largest airline.
Continental, together with Continental Express and Continental
Connection, has more than 3,100 daily departures throughout the
Americas, Europe and Asia, serving 150 domestic and 136
international destinations.  More than 400 additional points are
served via SkyTeam alliance airlines. With more than 44,000
employees, Continental has hubs serving New York, Houston,
Cleveland and Guam, and together with Continental Express,
carries approximately 67 million passengers per year.  
Continental consistently earns awards and critical acclaim for
both its operation and its corporate culture.

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: State Power Firm Gets US$80MM Aid from World Bank
-------------------------------------------------------------
Alba Castillo, Honduran state power firm Enee's manager, said in
a statement that the World Bank has offered US$80 million to
help the company recover.

Business News Americas relates that Honduran President Manuel
Zelaya established an audit board in 2006 to solve Enee's
financial and administrative problems.

According to BNamericas, the principal limitations within Enee
include:

          -- power theft,
          -- losses,
          -- billing, and
          -- rates.

BNamericas underscores that Enee expects power losses to be
about 13.5% of total consumption in the 2010-20 period, compared
with almost 24% last year.

The government said in a statement that there will be no
rationing and no buying of more thermal energy in 2007.

Renewables will add 100 megawatts of power and new reservoirs at
the El Cajon hydro plant will be operational in 2008.  Enee will
restore plants that to add 60 megawatts in the coming years,
according to the government statement.

Central grid figures from Enee indicated that that country's
electricity demand will increase an average 5.77% yearly through
2020.  Installed capacity was 1.45 gigawatts at the end of 2005,
BNamericas states.

                        *    *    *

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


CUMMINS INC: Sales Increase to US$11.36 Bil. in Full Year 2006
--------------------------------------------------------------
Cummins Inc. reported record sales and earnings for the fourth
quarter and all of 2006, marking the third consecutive year of
record financial performance for the company.

The company eclipsed US$3 billion in quarterly sales for the
first time during the fourth quarter.  All four of the company's
operating segments posted record revenues, and the company's
power generation and distribution businesses reported record
Segment EBIT in the fourth quarter, as well as for the entire
year.

For the full year, the company reported sales of US$11.36
billion, up 15% from US$9.92 billion in 2005.  Earnings Before
Interest and Taxes of US$1.18 billion increased 30% over US$907
million in 2005.

Net earnings rose 30% to US$715 million the previous year.

In the fourth quarter, the company reported sales of
US$3.03 billion, a 10% increase from US$2.75 billion in the same
period in 2005.  EBIT rose 13% to US$303 million, from US$269
million.

Net earnings in the fourth quarter increased 13% to US$189
million from US$167 million in the fourth quarter of 2005.  
Gross margin for the quarter was 22.1 percent, down slightly
from 22.5% for the fourth quarter of 2005.

The company's power generation and distribution businesses
performed at record levels in the fourth quarter -- and for the
entire year -- while the Engine segment reported near-record
EBIT on its best-ever quarterly sales performance in the fourth
quarter.  Segment EBIT at the company's components segment was
essentially flat in the fourth quarter, compared to 2005.

The cistribution business continued its trend of growing
earnings faster than sales, with the greatest growth coming in
sales of power generation products in the Middle East and
Europe.  Joint venture income from the company's North American
distributors also rose significantly in the quarter.

Engine sales were a record in the fourth quarter, led by strong
gains in North America for heavy- and medium-duty truck markets
and in the international construction markets.  Additionally,
sales to the oil and gas engine markets more than doubled from
the fourth quarter of 2005.

During the fourth quarter Cummins announced plans to enter the
light-duty diesel market in both the United States and China.  
The Company announced that its Columbus Engine Plant will be the
home of its U.S. -- based light-duty program that will add at
least 600 jobs by the end of the decade.

The company also reported a joint venture to make 2.8 and 3.8-
liter engines in China with Beiqi Foton Motor Company in
Beijing.  The engines, scheduled to go into production in 2008,
will be used in light-duty commercial trucks, pickups and sport
utility vehicles and certain industrial applications.

Last week, the company disclosed that its new 6.7-liter turbo
diesel engine for the 2007.5 model year Dodge Ram Heavy Duty
pickup meets the 2010 standards for oxides of nitrogen
emissions, a full three years ahead of schedule.  The engine
went into production at the Company's Midrange Engine Plant in
Walesboro, Indiana, in January and the new Ram pickup truck is
expected to be on the market in March.

"By almost every measure, 2006 was an outstanding year," said
Cummins Chairman and Chief Executive Officer Tim Solso.  "We
continued to build on the success of the past two years even as
we devoted significant time and resources to meeting the 2007
emissions changes in the United States.

"All of our business segments showed strong sales growth in 2006
and we gained share in key businesses and geographic markets
around the world.  At the same time, we invested in critical
growth opportunities and developed cost-control strategies that
will help us weather the temporary slowdown in the North
American heavy-duty truck engine market in 2007 as a result of
the U.S. emissions changes."

                     About Cummins Inc.

Headquartered in Columbus, Indiana, Cummins Inc. (NYSE: CMI)
-- http://www.cummins.com/-- designs, manufactures, distributes  
and services engines and related technologies, including fuel
systems, controls, air handling, filtration, emission solutions
and electrical power generation systems.  Cummins serves
customers in more than 160 countries through its network of 550
Company-owned and independent distributor facilities and more
than 5,000 dealer locations.  In Latin America, Cummins has
operations in Colombia, Jamaica and Trinidad and Tobago, among
others.

                        *    *    *

Cummins' Junior Convertible Subordinated Debentures carry
Fitch's 'BB' rating with a stable outlook.

As reported in the Troubled Company Reporter on May 11, 2006,
Moody's Investors Service raised Cummins Inc.'s convertible
preferred stock rating to Ba1 from Ba2 and withdrew the
company's SGL-1 Speculative Grade Liquidity rating and its Ba1
Corporate Family Rating.


DIGICEL LTD: Billing TV Broadcasts to Cellphones Per Second
-----------------------------------------------------------
Ralf Ohlhausen, Digicel Ltd.'s products director, told The
Jamaica Gleaner that Digicel Mobile TV, which offers direct
television and cable TV broadcasts to cellphones, will be billed
per second.

As reported in the Troubled Company Reporter-Latin America on
Jan. 30, 2007, Digicel launched its Digicel Mobile TV service in
Jamaica.  The service is powered by Vimio Plc and is available
to Digicel's post-paid and pre-paid clients in Jamaica.  

The Gleaner relates that Digicel Ltd. had said that it would be
offering the service for US$20 per minute.

According to The Gleaner, Digicel had not signed up anyone for
the service, which will be accessible to owners of specific
SonyEriccson and Nokia brands.  However, the company said that
over 100,000 clients had looked at details about 'Digicel Live'
on wapsdigicel.com.

The Gleaner underscores that for now, the service will stream
programs from national station CVM-TV and cable-based music
station Hype-TV to clients to the service.

Mr. Ohlhausen told The Gleaner, "We are currently in discussions
with at least one other local provider and we expect these to be
concluded and the channel live in the very near future.  Offered
on a GSM/GPRS network, Digicel is the first mobile operator in
the country to offer all live, all local mobile TV programming."

The Gleaner emphasizes that Digicel will offer the service to
the rest of the region.  It is already offering roaming as a
component.

Mr. Ohlhausen commented to The Gleaner, "This service is very
new and we are always looking at international best practice."

The report says that Mr. Ohlhausen hinted that short-term plans
include program diversification based on informal market
response.

"We did informal checks with customers at different levels to
gauge their interest in such a product as well as what they
would like to see offered.  This was the basis on which Digicel
chose to launch this service now with local TV content and with
several different programming options to be added in 2007," Mr.
Ohlhausen told The Gleaner.

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

                        *    *    *

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

                        *    *    *

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


SUGAR COMPANY: Frome Loses US$75 Mil. Due to Sugarcane Burning  
--------------------------------------------------------------
The Sugar Company of Jamaica's Frome sugar factory in
Westmoreland lost about US$75 million due to illegal burning of
sugar cane, the Jamaica Information Service reports.

The Information Service relates that over 50,000 tons of sugar
cane were lost since the beginning of the 2006/2007 crop season.

About 200 fires had occurred from the burning of cane fields and
this was wreaking havoc on the industry in general and in
Westmoreland in particular, The Information Service says, citing
Aston Smith, Frome's vice president of operations.

Mr. Smith complained to The Information Service, "Over the last
five years, we have seen canes burned in excess of one million
tons.  For the past two years, for example, we have had over
1,500 fires burning over 450,000 tons of cane, and when you look
in terms of a cane crop producing about 600,000 tons of cane,
when you burn 400,000 tons, that is approximately 75% of the
cane, which is burnt illicitly.  This will ultimately serve to
do major damage if not destroy the industry in this part of the
island."

Mr. Smith told The Information Service that the money lost was
unsustainable for this type of industry.  Several projects were
being implemented to solve the problem, including educating the
residents in the area about the negative effects of the fires.

The Information Service notes that sugarcane farmers usually
burn fields to make it easier for reaping.

However, the burning causes over supply of sugar cane to the
factories, The Information Service says, citing Mr. Smith.  The
Frome factory required about up to 6,000 tons of cane daily for
its operations.  On Jan. 26, there were 9,000 tons of sugarcane
on the ground, about 6,000 tons of them was illegally burnt.

Mr. Smith told The Information Service, "When the burning is so
extensive, it creates major problems at the factory, as well as
for the farmers."

Mr. Smith said that over 2,000 farmers supplying Frome would
lose money from the stale and immature sugarcane delivered to
the factory due to illegal burning, according to The Information
Service.

The police and the military would monitor Westmoreland to
prosecute persons caught for illegal burning of sugarcane
fields.  Aerial surveillance would be implemented soon, Jamaican
Minister of Agriculture Roger Clarke told The Information
Service.

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


WEST CORP: Posts US$496.4MM Revenues in Qtr. Ended Dec. 31, 2006
----------------------------------------------------------------
West Corp. disclosed its fourth quarter and full year 2006
results.

"We are pleased with how we finished the year.  Our 2006
consolidated revenue was in line with the updated guidance
provided on April 6," said Thomas B. Barker, Chief Executive
Officer of West Corporation. "The integration of our recent
acquisitions is progressing well and we are achieving the
synergies we expected."

               Consolidated Operating Results

For the fourth quarter ended Dec. 31, 2006, revenues were
US$496.4 million compared with US$404.8 million for the same
quarter last year, an increase of 22.6 percent.  Revenue from
acquired entities accounted for US$68.9 million of this
increase.  Organic growth in revenue for the fourth quarter was
US$22.7 million, an increase of 5.6 percent.

For the year ended Dec. 31, 2006, revenues were US$1,856.0
million compared with US$1,523.9 million for 2005, an increase
of 21.8 percent. Revenue from acquired entities2 accounted for
US$235.1 million of this increase.  Organic revenue growth for
2006 was US$97.0 million, an increase of 6.4 percent.

                Balance Sheet and Liquidity

At Dec. 31, 2006, West Corp. had cash and cash equivalents
totaling US$214.9 million and working capital of US$128.6
million. Stock purchase obligations of approximately US$170.6
million related to the company's recapitalization remain
outstanding and are included in current liabilities.  Fourth
quarter depreciation expense was US$25.7 million and
amortization expense was US$11.5 million.  Cash flow from
operating activities was US$(32.1) million and was impacted by
interest expense of US$65.7 million and recapitalization
transaction expense of US$73.2 million for the fourth quarter.
Adjusted EBITDA for the fourth quarter was US$141.5 million, or
28.5% of revenue.  A reconciliation of adjusted EBITDA to cash
flow from operating activities is presented below.

Cash flow from operating activities for 2006 was US$196.6
million, compared with US$276.3 million for 2005.  Interest
expense for 2006 was US$94.8 million.  Recapitalization
transaction expense for 2006 was US$78.8 million.  Adjusted
EBITDA for 2006 was US$501.9 million, an increase of 31.5
percent, versus US$381.6 million in 2005.  Adjusted EBITDA as a%
of revenue grew to 27.0% in 2006 from 25.0% in 2005.  A
reconciliation of adjusted EBITDA to cash flow from operating
activities is presented below.

During the quarter, West incurred US$3.2 billion of debt in
connection with the recapitalization of the company.  The
previous outstanding debt of US$665 million was repaid at the
closing of the recapitalization. At Dec. 31, 2006, there were no
borrowings under the US$250 million revolving line of credit.

The company is seeking an amendment to its existing term loan
facility to reduce the margin over LIBOR that the company pays
as interest on its term loan.  The amendment may also
potentially increase the size of the term loan facility by up to
US$165 million.  The balance of its outstanding term loan as of
Dec. 31, 2006 was US$2.1 billion.  Approval of the amendment may
require approval of the existing lenders, and there can be no
assurance that the company will be able to obtain such approval.

"During the quarter, we invested US$21.1 million in capital
expenditures for equipment and infrastructure and to expand
facilities domestically," stated Paul Mendlik, Chief Financial
Officer of West Corporation. "For the year, our capital
expenditures totaled US$83.4 million, or 4.5% of revenues,
excluding the purchase of a building for US$30.5 million which
had previously been subject to a synthetic lease."

                        Acquisitions

The company has agreed to acquire TeleVox Software, Inc. and
CenterPost Communications in separate transactions.

TeleVox and CenterPost are fast-growing firms in the large and
rapidly growing notifications market.

   * TeleVox is a leading provider of communication and
     automated messaging services to the healthcare industry,
     serving over 12,000 customers and 11 of the nation's top
     14 hospitals.  TeleVox offers a full suite of high-quality
     customer communication products, including message
     delivery, inbound inquiry, website design and hosting and
     secure online communication portals.  TeleVox helps its
     customers effectively communicate with their patients,
     reducing no-shows and improving the overall patient
     experience.

   * CenterPost Communications is a leading provider of
     self-service automated notification solutions.  The
     company's applications allow clients to efficiently send
     automated communications to their customers via voice,
     E-mail, fax, wireless text and instant messaging utilizing
     CenterPost's patented preference management functionality.
     CenterPost's solutions are designed to help companies
     effectively acquire, retain and care for their customers by
     enabling timely and relevant communication.  CenterPost
     serves Fortune 500 companies in the pharmaceutical, travel,
     insurance and financial services industries.

Both TeleVox and CenterPost generate high-quality revenue with
exceptional visibility.  The multi-year nature of their customer
relationships result in significant recurring revenue.  Adding
both firms to West further diversifies the company's base of
clients and brings additional vital and valuable transactions to
West.  The scale that West brings to these transactions along
with the anticipated growth is expected to result in strong
margins for the company.

The total cost of both transactions before transaction expenses
and working capital adjustments is approximately US$161 million.  
The 2007 pro forma EBITDA for these acquisitions is expected to
be approximately US$16 million.  The company's pro forma
leverage ratio after the acquisitions, as of Dec. 31, 2006, is
6.2, compared with 6.0 without these acquisitions.  The
transactions are expected to be funded with cash on hand and the
company's existing line of credit.  The CenterPost transaction
is expected to close on Feb. 1, 2007 and the TeleVox transaction
is expected to close on March 1, 2007 and is subject to
customary regulatory approval.

The company has estimated that automated notifications will
represent a market opportunity of over US$1 billion by 2009.  
Although the market is currently fragmented with no clear
leader, West is making a significant commitment to this market
with today's announcement.

"This market and these two firms are a great fit with West's
strengths. The businesses revolve around managing voice-oriented
transactions and offer a strong recurring revenue model with
solid margins.  Both companies are growing fast and have great
profitability.  West brings economies of scale, access to
critical capital investment and expertise in developing large
and successful sales organizations.  By adding TeleVox and
CenterPost into the West Interactive suite of services, West has
the products, scalability, systems and sales team firmly in
place to be the leader in this industry.  We expect this
combination to drive value well into the future," stated Mr.
Barker.

                        2007 Guidance

For 2007, the company expects revenues of US$2.05 to US$2.13
billion, adjusted EBITDA of US$540 to US$560 million and capital
expenditures of US$90 to US$110 million.  This guidance includes
TeleVox and CenterPost results and assumes no other acquisitions
or additional changes in the current operating environment.

Based in Omaha, Nebraska, West Corp. -- http://www.west.com--   
is a leading provider of business process outsourcing services.
The company reported revenues of US$1.7 billion for the 12-month
period ending June 30, 2006.  West operates through 3 business
segments: communication services (55% of revenues), conferencing
services (32% of revenues) and receivable management (13% of
revenues).

The company has operations in Mexico and Jamaica, among other
countries.

                        *    *    *

As reported in the Troubled Company Reporter on Oct. 5, 2006,
Moody's Investors Service assigned these ratings to West Corp:

   -- a Ba3 first time rating US$2.35 billion senior secured
      credit facility (US$2.1 billion term loan and US$250
      million revolver),

   -- Caa1 ratings to both the company's US$650 million of
      senior unsecured notes and US$450 million of senior
      subordinated notes, and

   -- a B2 corporate family rating.


WEST CORP.: Loan Add-On Cues S&P to Affirm B+ Loan Rating
---------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B+' loan and
'2' recovery ratings on the senior secured first-lien bank
facility of business process outsourcer West Corp., following
the announcement that the company will add US$165 million to its
first-lien term loan.  

The bank loan rating and recovery rating indicate expectation
of substantial  recovery of principal in the event of a payment
default.  Pro forma for the proposed add-on term loan, the
facility will consist of a US$250 million revolving credit
facility due 2012 and a US$2.215 billion term loan B due 2013.

Based in Omaha, Nebraska, West Corp. -- http://www.west.com--   
is a leading provider of business process outsourcing services.
The company reported revenues of US$1.7 billion for the 12-month
period ending June 30, 2006.  West operates through 3 business
segments: communication services (55% of revenues), conferencing
services (32% of revenues) and receivable management (13% of
revenues).

The company has operations in Mexico and Jamaica, among other
countries.


* JAMAICA: Central Bank Posts US$20 Billion Boost in Assets
-----------------------------------------------------------
Jamaica's Central Bank's balance sheet indicated at
Jan. 10, 2007, that its total assets increased US$20 billion to
US$263 billion, from US$241 billion in the same time in 2006,
Radio Jamaica reports.

Radio Jamaica relates that the biggest boost was in the central
bank's foreign assets that included bonds and long-term
securities.

The central bank had decreased its holdings of government
investment debentures, Radio Jamaica states.

As reported in the Troubled Company Reporter-Latin America on
Jan. 17, 2007, the central bank posted a US$1.1-billion loss as
of Dec. 27, 2006, which was better than the US$2.7-billion loss
incurred in 2005.  The bank has reported losses in the past
three years due primarily to the continued stability in the
exchange rate market.

                        *    *    *

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

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


* JAMAICA: Negotiating Air Services Pact with Germany
-----------------------------------------------------
Jamaica is negotiating a new air services accord with Germany,
Radio Jamaica reports.

Professor Stephen Vasciannie, chairperson of Jamaica's Air
Police Committee, led the Jamaican delegation.  The German team
was headed by the latter's Director General of Civil Aviation,
Radio Jamaica notes.

Radio Jamaica relates that an agreement is almost reached after
two days of negotiations.  Jamaica and Germany agreed to select
German and other European airlines to travel to Jamaica.  In
return, Jamaican and other regional airlines will be allowed to
travel to Germany.

According to Radio Jamaica, Germany and Jamaica also agreed on:

          -- the frequency of flights between the two countries,

          -- the circumstances under which airline authorization
             may be revoked, and

          -- issues of aviation safety within CARICOM and
             Europe.

                        *    *    *

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

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




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


ALASKA AIRLINES: Introduces Two 737-400 Aircraft to Fleet
---------------------------------------------------------
Alaska Airlines introduced two Boeing 737-400 "combi" aircraft
to its fleet to improve passenger and cargo service in the state
of Alaska.  The larger airplanes -- converted to transport
passengers in the back and mai-deck cargo in the front -- have
more cargo capacity, more-advanced flight-guidance capabilities
and more-comfortable passenger cabins than the 737-200 combis
they replace.

The aircraft are part of Alaska Airlines' US$100 million plan to
upgrade its cargo fleet and infrastructure.  The airline will
add two more 737-400 combis to its fleet by the end of 2007.  
These converted aircraft and an all-cargo freighter introduced
in June 2006 will provide about 20% more cargo capacity and
passenger seats than the fleet of 737-200 aircraft they replace.

"These combis -- the first of their kind in the world -- are
uniquely designed to meet the needs of both cargo customers and
passengers throughout the state of Alaska," said Bill MacKay,
Alaska Airlines' senior vice president for the state of Alaska.  
"By upgrading the fleet and modernizing cargo infrastructure, we
are providing more cargo capacity, a more comfortable passenger
experience and a more reliable flight schedule."

The combis are the first 737-400 aircraft in the world to be
converted from all-passenger to combination cargo-passenger
configurations.

The 737-400s' fixed configurations, which accommodate four cargo
pallets and 72 passengers, improve cargo service by guaranteeing
consistent cargo capacity on each flight.  The 737-200 combis
they replace had adjustable configurations, which allowed Alaska
to change the number of passenger seats and cargo-pallet
positions for each flight, but prevented the airline from
guaranteeing consistent cargo capacity.

The 737-400 combis offer improved fuel efficiency, more-advanced
flight-guidance systems and upgraded passenger amenities.  They
are equipped with Required Navigation Performance systems
designed to reduce the frequency of weather-related schedule
disruptions.  The passenger cabins also feature leather seats
and larger, standard-sized overhead luggage bins.

The first two aircraft, scheduled to enter commercial service
Feb. 2 and 3, will be routed throughout the state of Alaska with
an emphasis on serving the northern and western Alaska points of
Prudhoe Bay, Barrow, Kotzebue, Nome and Bethel.  The 737-400
freighter directly supports the cargo needs of the state's
seafood industry by flying routes in Southeast Alaska as well as
between Anchorage and Seattle.

Introduced to Alaska Airlines' fleet as passenger aircraft in
1992, the combis were retrofitted by Pemco World Air Services.  
Pemco also retrofitted the 737-400 freighter and is in the
process of retrofitting the two additional combis slated for
delivery later this year.  Alaska Airlines also maintains
options with Pemco to convert a second freighter and fifth combi
aircraft.

In mid-February Alaska Airlines also will introduce a new US$3
million cargo shipment-management and accounting system.  Using
a centralized database, the system will provide more detailed
cargo tracking information, automate customer billing and allow
customers to make flight-specific cargo reservations.

Seattle, Wash.-based Alaska Air Group, Inc. (NYSE: ALK) --
http://alaskaair.com/-- is a holding company with two principal  
subsidiaries, Alaska Airlines, Inc. and Horizon Air Industries,
Inc.  Alaska operates an all-jet fleet with an average passenger
trip length of 1,009 miles.  Alaska principally serves
destinations in the state of Alaska and North/South service
between cities in the Western United States, Canada, and Mexico.  
Horizon operates jet and turboprop aircraft with average
passenger trip of 382 miles.  Horizon serves 40 cities in seven
states and six cities in Canada.

                        *    *    *

As reported in the Troubled Company Reporter on Nov. 6, 2006,
Moody's Investors Service affirmed the corporate family rating
of Alaska Air Group, Inc. and the Equipment Trust Certificate
rating of Alaska Airlines, Inc. at B1, and changed the outlook
to stable from negative.


BEST MANUFACTURING: Wants to Sell All Remaining Assets
------------------------------------------------------
Best Manufacturing Group LLC and its debtor-affiliates ask the
U.S. Bankruptcy Court for the District of New Jersey for
authority to sell substantially all of its remaining assets at
an auction.

The remaining assets include, but are not limited to:

    -- all inventory and accounts receivable;

    -- the shares of Crowntex, X-Etra and Maysun Land Limited,
       owned by Best:Artex; and

    -- the Owned Real Property.

The Debtors remind the Court that it had previously sold it
Image and Baker Divisions in 2006.

The Debtors tell the Court that they conducted a strategic
analysis and prepared various models for a stand-alone plan of
reorganization based on their core "Institutional Business."

The Debtors disclose that all plan models showed that they
required a significant investment of new capital and that it
would be extremely difficult to propose a plan of reorganization
that would be supported by the DIP Agents and all the DIP
Lenders.

The Debtors further disclose that partially as a result of the
of the substantial fees and expenses associated with the Chapter
11 process, including substantial professional fees, the value
of the DIP Agents and DIP Lenders' collateral was decreasing.  
The Debtors believe that unless they could reach an agreement to
sell the remainder of their business, there was significant risk
that the DIP Agents would call a default under the DIP Loan.

The Debtors also concluded, among other things, that:

    * there are substantial risks associated with continuing the
      Debtors' business beyond the DIP Maturity Date because,
      among other things, the Debtors cannot live off of their
      cash collateral long term and might have difficulty
      obtaining the use of cash collateral over the DIP Agents'
      objection, and certainly could not afford such a fight;

    * the Debtors' customers are anxious to hear how the
      Debtors' Chapter 11 case would be resolved and thus are
      "holding back" orders for the spring season and shifting
      them to one or more of the Debtors' competitors; and

    * the Debtors are not prepared to address, in any meaningful
      way, the deadline by which they had to assume or reject
      their commercial property leases.

The Debtors relate that it has entered in an Asset Purchase
Agreement with Best Textiles International Ltd. regarding the
sale of their remaining assets, subject to better and higher
offers.

Pursuant to the APA:

    (a) Best Textiles will purchase the remaining assets for
        US$35 million;

    (b) Best Textiles will assume certain liabilities; and

    (c) the Debtors will assume and assign to Best Textiles
        certain executory contracts and unexpired leases.

The Debtors also ask the Court for authority to pay Best
Textiles up to US$1.5 million as break-up fee and expense
reimbursement as the stalking horse bidder.

Headquartered in Jersey City, New Jersey, Best Manufacturing
Group LLC -- http://www.bestmfg.com/-- and its subsidiaries  
manufacture and distribute textiles, career apparel and other
products for the hospitality, healthcare and textile rental
industries with satellite operations located across the United
States, Canada, Mexico and Asia.  The Company and four of its
subsidiaries filed for chapter 11 protection on Aug. 9, 2006
(Bankr. D. N.J. Case No. 06-17415).  Michael D. Sirota, Esq., at
Cole, Schotz, Meisel, Forman & Leonard, P.A., represents the
Debtors.  Scott L. Hazan, Esq., at Otterbourg, Steindler,
Houston & Rosen, and Brian L. Baker, Esq., and Stephen B. Ravin,
Esq., at Ravin Greenberg PC, represent the Official Committee of
Unsecured Creditors.  When the Debtors filed for protection from
their creditors, they estimated assets and debts of more than
US$100 million.


BEST MANUFACTURING: Court Extends Investigation Termination Date
----------------------------------------------------------------
The Hon. Donald H. Steckroth of the U.S. Bankruptcy Court for
the District of New Jersey approved the Official Committee of
Unsecured Creditors of Best Manufacturing Group LLC and its
debtor-affiliates' request to have the investigation termination
date under the Court's debtor-in-possession financing order
extended until Feb. 28, 2007.

The Committee tells the Court that pursuant to paragraph 29 of
the DIP financing Order, it was entitled to investigate the
validity and enforceability of each prepetition agent's lien and
security interests held and the obligations arising under
prepetition loan documents.

The Termination Date was currently set for Jan. 31, 2007.  
Although the Lenders had agreed to extend the date to
Feb. 11, 2007, the Committee believes that the extension was
insufficient.

The Committee contends that it has yet to conclude its analysis
of the prepetition loan documents, which involved over 50
documents and over 1,500 pages of documentation.

The Committee reminds the Court that it had proceeded with
discovery from the Lenders and served the DIP Agents with Rule
2004 subpoenas.  On Nov. 22, 2006, the Committee and the DIP
Agents later entered into a stipulation extending the
termination date to Jan. 31, 2007.  The Committee withdrew the
subpoenas issued pursuant to the stipulation.

After numerous discussions, the DIP Agents agreed to provide the
Committee with some, but not all, of the requested discovery by
Jan. 15, 2007.  The Committee contends that whatever the DIP
Agents produce, it will need additional time to review these
documents and conclude its investigation.

The Committee further discloses that it also served 2004
subpoenas to the Debtors and its crisis manager, Glass &
Associates Inc.  The Committee says it agreed to extend the
Debtor' and Glass Associates' time to respond to the subpoenas
and argues that the Feb. 11, 2007, extension agreed by the
Lenders was not sufficient.

Headquartered in Jersey City, New Jersey, Best Manufacturing
Group LLC -- http://www.bestmfg.com/-- and its subsidiaries  
manufacture and distribute textiles, career apparel and other
products for the hospitality, healthcare and textile rental
industries with satellite operations located across the United
States, Canada, Mexico and Asia.  The Company and four of its
subsidiaries filed for chapter 11 protection on Aug. 9, 2006
(Bankr. D. N.J. Case No. 06-17415).  Michael D. Sirota, Esq., at
Cole, Schotz, Meisel, Forman & Leonard, P.A., represents the
Debtors.  Scott L. Hazan, Esq., at Otterbourg, Steindler,
Houston & Rosen, and Brian L. Baker, Esq., and Stephen B. Ravin,
Esq., at Ravin Greenberg PC, represent the Official Committee of
Unsecured Creditors.  When the Debtors filed for protection from
their creditors, they estimated assets and debts of more than
US$100 million.


CELESTICA INC: Moody's Puts Ratings Under Review for Downgrade
--------------------------------------------------------------
Moody's Investors Service has placed the ratings of Celestica
Inc. under review for possible downgrade.   This is based on the
poor performance and operational issues announced yesterday as
part of company's fourth quarter earnings release and Moody's
concerns regarding the company's ability to rectify its
operational issues in a timely manner to minimize customer
attrition and its impact on Celestica's revenue, profitability,
and cash flow.

Celestica announced yesterday that while revenue for the fourth
quarter was generally in line with expectations, it is faced
with significant operational issues at its Mexican facilities, a
core piece of the company's cost re-alignment strategy.  
Execution challenges which included sub par ERP systems
capability resulted in a us US$30 million inventory write off at
the Mexico site, and became a reason for "customer
disengagement."  Celestica also announced that its revenue
guidance for first quarter 2007 will be negatively impacted
mainly by seasonality and partly by these customer
disengagements as well.  The company will also incur an
additional US$60 to US$80 million in restructuring charges.

As part of the review, Moody's will focus on management's plans
to turnaround its operations and improve execution -- a key
competitive differentiation in the EMS industry.  Moody's will
also examine prospects for improvements in Celestica's revenue,
profitability, free cash flow generation given the uncertainty
provided by the company's operational mishaps.  Furthermore,
Moody's will also review management's business and financial
strategies given the recent changes in the company's key
management -- the latest being the resignation of Celestica CFO,
announced as part of the earnings call yesterday.

These ratings are placed under review for possible downgrade:

   1. Corporate family rating at Ba3;

   3. Probability of default rating at Ba3;

   4. US$500 million 7.875% Senior Subordinated Notes due
      2011 at B2 LGD5, 87%; and

   5. US$250 million 7.5% Senior Subordinated Notes due
      2013 at B2, LGD5, 87%;

Speculative grade liquidity rating SGL -- 1.

Headquartered in Toronto, Canada, Celestica Inc. is a global
provider of electronics manufacturing services to original
equipment manufacturers in the information technology and
communications industry.  For the year ended December 2006, the
company generated adjusted EBITDA totaling UP$274 million from
US$8.8 billion in net sales.


FOAMEX INT: Bankruptcy Court Confirms Plan of Reorganization
------------------------------------------------------------
Foamex International Inc. disclosed that the United States
Bankruptcy Court for the District of Delaware has confirmed the
company's Second Amended Joint Plan of Reorganization, setting
the stage for the company's emergence from chapter 11, which is
expected to occur on Feb. 12, 2007.

In confirming the Plan, the Court determined that Foamex had
provided fair and equitable treatment of its creditors and
equityholders and otherwise satisfied the confirmation
requirements under the Bankruptcy Code.  Foamex's Plan provides
for the satisfaction in full in cash to all holders of allowed
claims against the company. In addition, under the Plan, the
company's equityholders will retain their interests in Foamex,
subject to dilution as a result of the issuance of additional
common stock pursuant to the rights offering and, if exercised,
the call option and any common stock to be issued under the
proposed Management Incentive Plan and the existing Key Employee
Retention Program or upon exercise of any stock options.  The
company's Senior Secured Noteholders and equityholders voted
unanimously in favor of the Plan.

Raymond E. Mabus, Chairman and Chief Executive Officer of
Foamex, said, "We are extremely pleased that the Court has
confirmed Foamex's Plan, paving the way for our emergence from
bankruptcy and providing our stakeholders with full recovery.  
The announcement represents a significant, and almost final,
milestone in Foamex's chapter 11 case. The confirmation of the
Plan validates the painstaking efforts of our talented team to
negotiate the best possible outcome for all of our stakeholders
and emerge as a stronger, more competitive company that is
better able to compete in the marketplace, invest in our
operations and R&D efforts, and provide our customers with the
innovative solutions they need."

Mr. Mabus concluded, "This has been an arduous, but valuable,
journey. Over the past year and a half we have worked tirelessly
with our stakeholders to devise a plan that would maximize the
value of Foamex.  I am pleased with the results we have achieved
to date, and look forward to working with our many employees,
customers, and other stakeholders as we look to the future."

Foamex has secured a commitment from a group of lenders led by
Bank of America, N.A. and Banc of America Securities LLC for up
to US$790 million of exit financing from which the company will
draw approximately US$615 million upon its emergence from
chapter 11.  In connection with the previously announced rights
offering and related equity commitment, which expired on
Jan. 31, 2007, and related agreements, the exit financing will
be used by Foamex to repay the Debtor-In-Possession facility, to
make other payments required upon exit from bankruptcy, and to
ensure strong cash balances to conduct post-reorganization
operations.

The company said that creditor distributions would likely begin
on the scheduled Feb. 12 Effective Date for the Plan.

The company is advised by Paul, Weiss, Rifkind, Wharton &
Garrison LLP, and its financial advisor is Miller Buckfire &
Co., LLC.

Counsel can be reached at:

          Paul, Weiss, Rifkind, Wharton & Garrison LLP  
          1285 Avenue of the Americas
          New York, New York 10019-6064

The financial adviser can be reached at:

          Miller Buckfire & Co., LLC
          250 Park Avenue, 19th Floor
          New York, NY 10177
          Tel: (212) 895-1800
          Fax: (212) 895-1853
          E-mail: info@millerbuckfire.com

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

                        *    *    *

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


FORD MOTOR: Reports 19% Decline on January Sales
------------------------------------------------
Ford Motor Co.'s January U.S. sales declined 19% compared with a
year ago, largely as a result of a planned reduction in sales to
daily rental companies.  Sales to daily rental companies were
cut by 65%.

"All of us at Ford are focused on restructuring our business to
be profitable at lower volumes and offering more of the products
people want, including more cars and more crossovers," said Mark
Fields, Ford's President of The Americas.  "We are focusing more
of our attention on retail customers and reducing sales to daily
rental companies sharply.  Our customers benefit from this plan
because their vehicles' residual values will improve -- a trend
we already are seeing with our newest products."

The resale values of Ford's newest products have improved by as
much as 11 percentage points -- with Ford closing the gap on
many Asian competitors -- according to the Automotive Leasing
Guide. Residual values have improved 2%age points compared with
the prior model year for the 2007 Ford Fusion sedan, 6 points
better for the 2007 Lincoln Navigator, 9 points better for the
2007 Ford Expedition and 11 points better for the 2008 Ford
Escape.  Ford's new 2007 Edge crossover has resale values higher
than Toyota Highlander and Nissan Murano.

January marked the first full month on sale for the company's
new crossover utilities -- the Ford Edge and Lincoln MKX.  Edge
sales were 5,586 and MKX sales were 1,699.  In fact, the Edge
post higher sales in its introduction month than did Ford's
popular Fusion in its first month (4,078 in October 2005).

Dealers reported higher retail sales for the company's 2007
model mid-size cars, the Ford Fusion, Mercury Milan, and Lincoln
MKZ.  In addition, the all- new Ford Expedition and Lincoln
Navigator full-size SUVs extended their winning streaks into
2007.  Expedition sales have been higher than a year ago for
five months in a row and Navigator sales have been up the last
four months.

The Ford Escape and Mercury Mariner utility vehicles posted
sharply higher retail sales in advance of a new 2008 model,
which now is being shipped to dealers from Ford's Kansas City
(Mo.) Assembly Plant.

Ford saw lower sales for its popular F-Series pickup truck in
January (down 15%), which compares with a strong performance for
America's best-selling pickup last year.  The company expects
softness in new home construction to adversely affect full-size
pickup sales through the first half of 2007.

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

                        *     *     *

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

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

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


FORD MOTOR: May Receive New Offers for Aston Martin Sports Car
--------------------------------------------------------------
Ford Motor Co. is expected to get revised offers from remaining
bidders for its Aston Martin sports car brand, MarketWatch
reports citing the Financial Times.

Remaining bidders on the brand are thought to include property
tycoon Simon Halabi, buyout company Doughty Hanson, Canadian car
parts company Magna, and a consortium including Australian media
billionaire James Packer, MarketWatch says, referring to the
FT's report.

Aston Martin, up for sale for more than GBP450 million, is part
of the company's premier automotive group -- the organization
under which all of Ford's European brands are grouped.  The
group also includes other brands like Volvo, Land Rover, and
Jaguar.  

The sale of Aston Martin is in line with the company's cost
reduction plan, which according to its chief executive officer
Alan R. Mulally, includes reduction of the number of vehicle
platforms the company uses around the world and increasing the
number of shared parts.

Moving on with its restructuring efforts, Ford will be closing a
day-care center near its Kentucky Truck Plant -- one of the
seven day care facilities the company intends to shut down -- on
June 29, Robert Schoenberger of The Courier-Journal says.

Company spokesman Tom Hoyt told The Courier-Journal that the
company can no longer afford to subsidize the program.  Mr. Hoyt
did not disclose how much of the program Ford subsidized.

As reported Troubled Company Reporter on Jan. 26, 2007, Ford
posted US$12.75 billion in losses against US$160.1 billion in
revenues for the full year 2006, compared with US$1.4 billion in
net profit against US$176.9 billion in revenues for 2005.

Ford also posted US$5.76 billion in net loss against US$40.3
billion in revenues for the fourth quarter of 2006, compared
with US$74 million in net loss against US$46.3 billion in
revenues for the same period in 2005.

Commenting on the results, Mr. Mulally said, "We began
aggressive actions in 2006 to restructure our automotive
business so we can operate profitably at lower volumes and with
a product mix that better reflects consumer demand for smaller,
more fuel efficient vehicles.  We fully recognize our business
reality and are dealing with it.  We have a plan and we are on
track to deliver."

Analysts, however, are skeptical that Ford's products are strong
enough to turn the company around, AFX News relays.

"There is no question that Ford is in deep trouble -- probably
the worst trouble they have been in since the Depression,"
Gerald Meyers, a University of Michigan business professor and
former chief executive of American Motors Corp, told Bloomberg
News.  "It is going to be a while before it gets out."

"The basic story of Ford's stunning collapse in its home-market
profitability remains the same," David Healy, Burnham Securities
analyst, told Reuters.  "Ford's finances were wrecked by the
collapse in volume and pricing of its most profitable truck
models."

Alex Taylor III, a senior editor at Fortune Magazine, stated in
his January 26 article that compared to its Japanese
counterparts, structural inequities -- particulary labor costs
and currency -- account for a big chunk of the automaker's
problems.  

Mr. Taylor took his conclusion from a report prepared by the
Detroit consulting firm Harbour-Felax, which stated that labor
costs created that wide gap -- an average of about $2900 per
vehicle -- between Japanese and American carmakers' profits.

                     About Ford Motor Co.

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

                        *     *     *

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

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

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


GENERAL MOTORS: Asks for Increase in Battery Research Funding
-------------------------------------------------------------
General Motors Corp. has asked the U.S. government to increase
funding in research and development in battery technology and to
support manufacturing of advanced batteries, David Shepardson of
Detroit News Washington Bureau reports.

The call, Detroit News says, comes as momentum is building on
Capitol Hill to force automakers to improve the efficiency of
their vehicles.

The automakers' move for alternative fuel is in conjunction with
its restructuring efforts, which, according to Reuters, focus on
cutting costs and improving cash flow.

To boost liquidity, Reuters says General Motors is considering a
possible sale of Allison Transmission -- its Indianapolis-based
subsidiary, which makes transmissions and hybrid propulsion
systems for commercial trucks and buses and military vehicles
and employs more than 4,000 workers.

In addition, General Motors said in a filing with the Securities
and Exchange Commission early this week that it will be delaying
the announcement of its 2006 year-end and fourth quarter
financial results but expects to report improved performance in
its automotive business, including record fourth quarter revenue
in 2006.  The company also said that it will restate its
financial statements, primarily due to pre-2002 tax accounting
adjustments.

GM indicated that its deferred tax liabilities, as previously
disclosed in its results for the third quarter of 2006 and prior
periods, were overstated due to errors that originally occurred
primarily before 2002.  While these errors do not impact cash
flow or previously reported cash balances, retained earnings as
of Dec. 31, 2001, and subsequent periods were understated by a
range of US$450 million to US$600 million as a result.

As reported in the Troubled Company Reporter-Latin America on
Jan. 30, 2007, Standard & Poor's Ratings Services said that
General Motors Corp.'s (GM; B/Negative/B-3) announcement that it
is restating financial results from 2002 through the third
quarter of 2006 raises new concerns about the integrity of the
company's financial reporting and internal controls, but has no
immediate effect on the ratings on GM, GMAC LLC
(BB+/Developing/B-1), or GMAC unit Residential Capital LLC
(ResCap; BBB/Negative/A-3).

GMAC, the rating agency said, has not yet finalized its
financial statements for 2006, after GM sold a majority stake in
the finance unit to an investor group in November.  GM still
expects to file its 10-K by the March 1, 2007, deadline.  

S&P does not believe these errors will affect cash and cash
equivalents, which were US$26.4billion at the end of 2006.  
However, it said that the ratings could be placed on CreditWatch
with negative implications if GM were to miss the March 1 filing
date with the SEC, even with the brief and normally available
extension period.

                    About General Motors

General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- is the  
world's largest automaker and has been the global industry sales
leader since 1931.  Founded in 1908, GM employs about 284,000
people around the world.  It has manufacturing operations in
33 countries, including Mexico, and its vehicles are sold in 200
countries.  GM sells cars and trucks under these brands: Buick,
Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel,
Pontiac, Saab, Saturn and Vauxhall.

                        *     *     *

As reported in the Troubled Company Reporter on Dec. 15, 2006,
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating and other ratings on General Motors Corp. and
removed them from CreditWatch with negative implications, where
they were placed March 29, 2006.  S&P said the outlook is
negative.

As reported in the Troubled Company Reporter on Nov. 14, 2006,
Moody's Investors Service assigned a Ba3, LGD1, 9% rating to the
proposed US$1.5 billion secured term loan of General Motors
Corp.  The term loan is expected to be secured by a first
priority perfected security interest in all of the US machinery
and equipment, and special tools of General Motors and Saturn
Corp.


GRUPO TMM: Seeks Damage from KCS Under Acquisition Agreement
------------------------------------------------------------
As part of the agreement pursuant to which Kansas City Southern
acquired the controlling interest in the company now known as
Kansas City Southern de M,xico, S. de R.L. de C.V. from Grupo
TMM, S.A.B., KCS withheld US$47 million from the purchase price
to establish an Indemnity Escrow to provide a basis for recovery
on claims under the Acquisition Agreement.  

On Jan. 29, 2007, KCS sent a letter to TMM advising that KCS
intended to assert against TMM certain claims under the
Acquisition Agreement related to representations and warranties
made by TMM in the Acquisition Agreement.  In its letter, KCS
indicated that its investigation of claims was not complete, but
that it was asserting claims for indemnification aggregating
more than the amount of the Indemnity Escrow, including interest
thereon.

On Feb. 1, 2007, KCS received a letter from TMM indicating that
TMM would seek damages from KCS under the Acquisition Agreement,
aggregating approximately US$43 million and as well as
unspecified other amounts.

The parties are obligated under the Acquisition Agreement to
attempt to resolve their differences informally and, if that is
not successful, then to submit them to binding arbitration.

                About Kansas City Southern

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

                        *    *    *

As reported in the Troubled Company Reporter on Jan. 31, 2007,
Standard & Poor's Ratings Services placed most of its ratings on
Kansas City Southern, including the 'B' corporate credit rating,
on CreditWatch with negative implications.  The 'D' rating on
the preferred stock is not on CreditWatch.  

                      About Grupo TMM

Headquartered in Mexico City, Grupo TMM SA (NYSE: TMM)(MEX
VALORIS: TMMA) -- http://www.grupotmm.com/-- is a Latin  
American multimodal transportation and logistics company.  
Through its branch offices and network of subsidiary companies,
TMM provides a dynamic combination of ocean and land
transportation services.

                        *    *    *

Standard & Poor's Ratings Services raised its corporate credit
rating on Grupo TMM SA to 'B-' from 'CCC.'  The rating was
removed from Creditwatch, where it was placed on Dec. 15, 2004.  
S&P said the outlook is positive.


KANSAS CITY: Unit Raises Note Premium Consent Payment to US$7.50
----------------------------------------------------------------
Kansas City Southern disclosed that its subsidiary, The Kansas
City Southern Railway Company, in connection with its
solicitation of consents to amend the indentures, under which
KCSR's 9-1/2% Senior Notes due 2008 and 7-1/2% Senior Notes due
2009 were issued, has increased the Premium Consent Payment for
both series of Notes to US$7.50 per US$1,000 in principal amount
of each series of Notes.

Previously, the Premium Consent Payment was US$3.50 per US$1,000
principal amount of the 9-1/2% Notes and US$5.00 per US$1,000
principal amount of the 7-1/2% Notes.  The Standard Consent
Payment for each series remains unchanged at US$1.00 for the 9-
1/2% Notes and US$1.50 for the 7-1/2% Notes.  The record date
for the consent solicitation is the close of business, New York
City time, on Jan. 26, 2007.

The proposed amendments will become effective upon execution of
the supplemental indentures, which KCSR expects to execute upon
receipt of the requisite consents for each series of Notes.
Holders have until 5:00 p.m., New York City time, on Feb. 5,
2007 to consent and receive the Premium Consent Payment.  The
consent solicitation will expire at 5:00 p.m., New York City
time, on Feb. 9, 2007, unless extended.

Questions from holders regarding the consent solicitation or
requests for additional copies of the Consent Solicitation
Statement, the Letter of Consent or other related documents
should be directed to the Information Agent for the consent
solicitation at:

          D.F. King & Co., Inc.
          48 Wall Street
          New York, New York, 10005
          Tel: 800-714-3313

or the Solicitation Agents for the consent solicitation at:

          Morgan Stanley & Co. Incorporated
          1585 Broadway
          New York, New York, 10036
          Tel: 800-624-1808 (US toll-free)

                   -- or --

          Banc of America Securities LLC
          214 North Tryon Street
          Charlotte, NC 28255
          Tel: 888-292-0070 (US toll-free)
               704-388-4813 (collect)

Headquartered in Kansas City, Mo., KCS is a transportation
holding company that has railroad investments in the U.S.,
Mexico and Panama. Its primary U.S. holding includes KCSR,
serving the central and south central U.S. Its international
holdings include Kansas City Southern de Mexico, serving
northeastern and central Mexico and the port cities of L zaro
C rdenas, Tampico and Veracruz, and a 50 percent interest in
Panama Canal Railway Company, providing ocean-to-ocean freight
and passenger service along the Panama Canal. KCS' North
American rail holdings and strategic alliances are primary
components of a NAFTA Railway system, linking the commercial and
industrial centers of the U.S., Canada and Mexico.

This press release may include statements concerning potential
future events involving KCS and its subsidiaries, which could
materially differ from the events that actually occur. The
differences could be caused by a number of factors including
those factors identified in the "Risk Factors" and the
"Cautionary Information" sections of KCS' Form 10-K for the most
recently ended fiscal year, filed by KCS with the Securities and
Exchange Commission (SEC) (Commission file no. 1-4717). KCS will
not update any forward-looking statements in this press release
to reflect future events or developments.


KANSAS CITY: Asserts Claim Under Acquisition Pact with Grupo TMM
----------------------------------------------------------------
As part of the agreement pursuant to which Kansas City Southern
acquired the controlling interest in the company now known as
Kansas City Southern de M,xico, S. de R.L. de C.V. from Grupo
TMM, S.A.B., KCS withheld US$47 million from the purchase price
to establish an Indemnity Escrow to provide a basis for recovery
on claims under the Acquisition Agreement.  

On Jan. 29, 2007, KCS sent a letter to TMM advising that KCS
intended to assert against TMM certain claims under the
Acquisition Agreement related to representations and warranties
made by TMM in the Acquisition Agreement.  In its letter, KCS
indicated that its investigation of claims was not complete, but
that it was asserting claims for indemnification aggregating
more than the amount of the Indemnity Escrow, including interest
thereon.

On Feb. 1, 2007, KCS received a letter from TMM indicating that
TMM would seek damages from KCS under the Acquisition Agreement,
aggregating approximately US$43 million and as well as
unspecified other amounts.

The parties are obligated under the Acquisition Agreement to
attempt to resolve their differences informally and, if that is
not successful, then to submit them to binding arbitration.

                About Kansas City Southern

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

                        *    *    *

As reported in the Troubled Company Reporter on Jan. 31, 2007,
Standard & Poor's Ratings Services placed most of its ratings on
Kansas City Southern, including the 'B' corporate credit rating,
on CreditWatch with negative implications.  The 'D' rating on
the preferred stock is not on CreditWatch.  

                      About Grupo TMM

Headquartered in Mexico City, Grupo TMM SA (NYSE: TMM)(MEX
VALORIS: TMMA) -- http://www.grupotmm.com/-- is a Latin  
American multimodal transportation and logistics company.  
Through its branch offices and network of subsidiary companies,
TMM provides a dynamic combination of ocean and land
transportation services.

                        *    *    *

Standard & Poor's Ratings Services raised its corporate credit
rating on Grupo TMM SA to 'B-' from 'CCC.'  The rating was
removed from Creditwatch, where it was placed on Dec. 15, 2004.  
S&P said the outlook is positive.


VITRO SAB: Fitch Assigns B+ Rating on US$1 Bil. Proposed Debt
-------------------------------------------------------------
Fitch Ratings has upgraded Vitro, SAB de CV local and foreign
currency Issuer Default Ratings to 'B' from 'CCC' and has
assigned a 'B+' rating to Vitro's US$1 billion proposed notes
offering.  Fitch has also upgraded Vitro's US$225 million senior
unsecured notes due 2013 to 'B+/RR3' from 'CCC/RR4', upgraded
Vitro's national scale rating to 'BB+' from 'BB.

In addition, Fitch upgrades the following national scale ratings
on Vitro's outstanding senior unsecured certificates:

   -- MXP360 million due Oct. 2, 2008 to
      'BB+' from 'BB';

   -- MXP1 billion due Dec. 22, 2008 to 'BB+' from 'BB'; and

   -- MXP1.14 billion due Feb. 5, 2009 to 'BB+ from 'BB.

The Outlook on all ratings is Stable.

The rating upgrades reflect the improvement in the company's
capital structure and debt profile, which significantly lowers
refinancing risk and eliminates structural subordination
following the takeout of secured operating subsidiary debt.

In addition, Fitch assigns the following ratings to Vitro's US$1
billion transaction, consisting of two tranches:

   -- US$700 million 9.125% senior unsecured notes due
      Feb. 1, 2017, and callable after 2012 'BB+/RR3'; and

   -- US$300 million 8.625% non-callable senior unsecured
      notes due Feb. 1, 2012 'BB+/RR3'.

The notes are guaranteed by Vitro Envases Norteamerica, SA de CV
and its wholly owned subsidiaries and Vimexico, SA de CV and its
wholly owned subsidiaries.  The transaction closed on
Feb. 1, 2007.

The rating action also considers the improvement in Vitro's
operations, supported by the strong performance of the glass
containers division over the past year.  Consolidated EBITDA for
the 12 months ended Sept. 30, 2006, improved to US$368 million
from US$326 million for the 12 months ended Sept. 30, 2005, and
the EBITDA margin grew to 15.6% from 15.1%.  Fitch expects
EBITDA during 2007 to reach US$330 million-US$350 million.  
Vitro SAB continues to face a challenging business and
competitive environment, with high raw materials and energy
costs and customer expanding in-house container production.

During 2006, asset sales and capital increases helped improve
the company's debt profile. Over the past year, Vitro SAB
completed the sale of its 51% interest in the glassware
division, Vitrocrisa, for US$109 million in cash; sold real
estate assets for US$143 million; and completed a capital
increase for approximately US$50 million.  Proceeds from these
transactions were used to reduce debt, primarily at the holding
company level.  For the 12 months ended Sept. 30, 2006, the
total debt-to-EBITDA ratio improved to 3.3 times from 4.2x for
the 12 months ended June 30, 2005.  Fitch expects leverage
ratios to remain stable at current levels.

Proceeds from the offering will be applied to debt repayment and
corporate purposes.  As part of the refinancing process, VENA
launched a cash tender offer for its US$250 million 10.75%
senior secured guaranteed notes due 2011, subject, among other
conditions, to obtain financing for the repayment of the notes.  

Additionally, VENA solicited consent from bondholders to amend
the original notes indenture and release certain liens on the
collateral.  With this, the majority of the company's debt will
be allocated at the holding company level and rank pari-passu to
subsidiaries' unsecured obligations, eliminating structural
subordination.  It is expected that at closing of the
transaction, the company's senior unsecured notes due in 2013
will share the same guarantee as and rank pari-passu with the
new bonds.

Vitro is the leading producer of flat glass and glass containers
in Mexico, serving the construction, automotive, beverage,
retail, and service industries.  The company exports products to
more than 70 countries.  For the 12 months ended Sept. 30, 2006,
the company had sales of US$2.4 billion, EBITDA of US$368
million, exports of US$567 million and foreign sales by
subsidiaries of US$780 million.


VITRO SAB: S&P Lifts Senior Unsecured Rating to B from CCC+
-----------------------------------------------------------
Standard & Poor' Ratings Services raised its long-term senior
unsecured credit rating on Mexico-based glass manufacturer Vitro
S.A.B. de C.V.'s (Vitro; B/Stable/--) notes due 2013 to 'B' from
'CCC+'.

"The rating action follows the successful issuance of Vitro's
US$300 million notes due 2012 and US$700 million notes due
2017," said Standard & Poor's credit analyst Jose Coballasi.  

Given the issuance of the aforementioned notes, the holders of
Vitro's senior unsecured notes due 2013 are entitled to the
guarantee of Vitro's key subsidiaries, Vitro Envases
Norteamerica S.A. de C.V. aka Vena and Vimexico S.A. de C.V.,
which, coupled with an expected reduction in subsidiary
liabilities and secured debt, mitigates the structural
subordination of holding company creditors.

The ratings on Vitro are constrained by the company's highly
leveraged financial risk profile, its exposure to commodity
price volatility, and the challenging operating environment
faced by its flat-glass business unit.  The ratings also factor
in the seasonality of the food and beverage industry and the
cyclicality of the construction and automotive industries.

The ratings are supported by the company's leading position in
glass containers and its significant share of the Mexican flat-
glass market.  They also reflect its export activities and
international operations (particularly in the U.S.), which
contribute about 50% of total revenues.

Vitro, through its subsidiaries, is Mexico's leading glass
producer, and is a major participant in the flat-glass and
glass-container markets.  The company also produces raw
materials and equipment and capital goods for industrial use.




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


* PANAMA: Gets Bids for Environmental Review on Canal Expansion
---------------------------------------------------------------
The Panama Canal Authority or ACP has closed the auction and
secured proposals for the environmental impact assessment or EIA
on the Panama Canal expansion, BNamericas reports.  The project
is invested at US$5.25 billion.

The ACP has kept on certain information.  It will not disclose
contract price contract price for the EIA unless a winning
bidder has been selected and bidders will not be named unless
the contract has been signed.  Even the time frame for reviewing
the proposals has been declared undefined, BNamericas relates.

According to the same report, the companies' bids will be
primarily judged by the technical proposals for the study.  If a
bidder has been selected according to technicality, it will then
proceed to a price negotiation with the government for the EIA
contract.

At the later part in December, the ACP met with 25 companies
that were interested to perform the assessment, but it is with
great possibility that not all companies at the meeting
submitted a proposal and some companies that were not able to
attend may have had submitted theirs, an ACP official told
BNamericas.

The official told BNamericas that the EIA is scheduled to be
completed by mid-year and once it is finished, a new round of
bidding will be conducted interested parties who will work on
the expansion project that involves the addition of a third set
of locks to the canal.

According to the official, the winner of the EIA contract will
have certain specifications.  The EIA will be category III,
which is considered to be the most rigorous for these kind of
studies.  With this category, the winning bidder is expected to:

   -- consult local community members who are affected by the
      expansion project and

   -- develop proposals to lessen the environmental effects of
      the wok.

Anam, the national environmental authority, will be the one to
approve the study and will seek for further public consultation
on the EIA, BNamericas says.

"The most relevant environmental impacts will be the ones
usually associated with construction, such as noise, equipment
emissions, and suspended dust.  All possible environmental
impacts can be mitigated with existing technology and
procedures, and good environmental management," BNamericas said,
citing a document on the ACP website.

                        *    *    *

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


* PANAMA: IDB Provides US$289,880 Loan to Santa Fe Wind Projects
----------------------------------------------------------------
The Inter-American Development Bank authorized a US$289,880
funding to carry out 80-MW wind power projects in Panama by
Santa Fe Energy, BNamericas reports.

BNamericas says that the IDB fund will aid the company to:

   -- complete environmental and social impact studies,
   -- develop a financial model,
   -- secure the required permits, and
   -- support project registration under the UN Framework
      Convention on Climate Change's clean development
      Mechanism.

The fund is taken from the IDB infrastructure fund established
in 2006.

                        *    *    *

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


* PANAMA: Regulator Cancels 9 Requests for Hydro Projects
---------------------------------------------------------
Panamanian public services regulator Asep said in a statement
that it has rejected nine requests to construct hydro projects
that total 185 megawatts installed capacity.

According to Asep's statement, the requests were cancelled in
lilne with resolutions that outline the procedure for awarding
hydro and geothermal generation concessions.

Business News Americas relates that Asep did not state specific
reasons for the cancellation of the requests.

BNamericas states that requests rejected include those of:

          -- Alternegy for 83.5-megawatt Lalin project in
             Veraguas,

          -- Complejo Hidroelectrico Progreso for 70-megawatt
             Baitun project in Chiriqui,

          -- Elektra Noreste for 10.3-megawatt Mamoni in Panama
             and 5.3-megawatt Indio in Colon,

          -- Hidro Boqueron,

          -- Hidro Palmira, and

          -- Productos Energeticos.

                        *    *    *

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




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


* PARAGUAY: IDB Grants US$1.4 Mil. Technical Cooperation Grant
--------------------------------------------------------------
The Inter-American Development Bank's Multilateral Investment
Fund approved a US$1,400,000 technical cooperation grant to
Paraguay for a program to strengthen the cooperative sector by
improving compliance of the regulatory system.

"The program will help deepen financial services in Paraguay in
order to reach an increasing number of customers, particularly
in rural areas," said IDB Team Leader Alejandro Escobar.

"At least 20 cooperatives engaged in financial intermediation
activities will attain compliance with the new regulatory and
oversight framework," explained Mr. Escobar.  "The cooperatives
will receive direct technical assistance to strengthen their
management skills and ensure that they have the capacity to
align their systems with the new regulatory framework."

The project will be geared toward transferring knowledge to and
training the cooperative sector in general by providing
information on best practices to comply with new oversight
regulations.  Around 350,000 customers of cooperatives involved
in financial intermediation, mainly low- to middle-income
persons, will also enjoy access to more stable and secure
financial services.

The Ministry of Finance will be in charge of the project.  Local
counterpart funds will total US$600,000.

MIF, an autonomous fund administered by the IDB, supports
private sector development in Latin America and the Caribbean,
focusing on microenterprise and small business.

                        *    *    *

Moody's assigned these ratings on Paraguay:

     -- CC LT Foreign Bank Deposit, Caa2
     -- CC LT Foreign Currency Debt, Caa1
     -- CC ST Foreign Bank Deposit, NP
     -- CC ST Foreign Currency Debt, NP
     -- LC Currency Issuer Rating, Caa1
     -- FC Currency Issuer Rating, Caa1
     -- Local Currency LT Debt, WR

                        *    *    *

Standard & Poor's assigned these ratings on Paraguay:

     -- Foreign Currency LT Debt B-
     -- Local Currency LT Debt   B-
     -- Foreign Currency ST Debt C
     -- Local Currency ST Debt   C




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


* PERU: Posts PEN48.2MM Rural Electrification Projects in 2006
--------------------------------------------------------------
The Peruvian energy and mines ministry has concluded PEN48.2
million rural electrification projects in the August-December
2006 period, Business News Americas reports.

The ministry said in a statement that the projects will benefit
112,000 residents in 427 towns.

BNamericas relates that projects in progress are six small
electricity systems and one transmission line, totaling PEN46.1
million.  These projects will benefit 19,000 residents in 85
towns.  The ministry expects to complete the projects by the
middle of 2007.

According to BNamericas, the ministry came up with 163 projects
to be included in the government's "shock investment" program.  

BNamericas notes that under the program, the ministry will
conduct three.  Regional governments will carry out 148
projects, while the local governments will advance 12.

The report says that the 163 projects will cost PEN221 million.  
The will benefit 407,000 residents in 1,315 towns.

The ministry is setting up tenders for 17 projects that will
need PEN81.1 million and supply power to 122,000 residents in
518 towns, BNamericas states.

                        *    *    *

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-'.


* PERU: Posts US$515 Million Exploration & Production Investment
----------------------------------------------------------------
The Peruvian energy and mines ministry said in a statement that
investment in exploration and production activities in the
country totaled US$515 million last year.

Some US$420 million, which is the greater part of the
investment, was allocated to production.  The remainder was used
on exploration, according to the ministry's statement.

Business News Americas relates that last year's investment was
below what Perupetro, Peru's hydrocarbons promotion agency,
expected.

Perupetro told BNamericas in December 2005 that it expected
US$655 million in investment in 2006.  About US$120 million from
that amount would be from exploration, while US$535 million
would be from production.

The ministry said in a statement that seven exploratory wells
and 67 development wells were drilled last year.

According to a statement, average gas output increased 17% to
171 million cubic feet per day in 2006, compared with 2005.  
Liquids production rose 3.6% to 115,000 barrels per day.

The ministry told BNamericas that estimated proven reserves of
natural gas grew 3.8% to 11.9 trillion cubic feet in 2006,
compared with 2005.  Estimated probable reserves increased 32%
to 6.82 trillion cubic feet.

Proven oil reserves increased 0.9% to 383 million barrels and
probable reserves grew 6.4% to 438 million barrels, BNamericas
states.

                        *    *    *

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


FIRST BANCORP: Earns US$114.6 Mln. for Qtr. Ended Dec. 31, 2005
---------------------------------------------------------------
First BanCorp reported unaudited financial position and results
of operations for the year ended Dec. 31, 2005.

For the year ended Dec. 31, 2005, First BanCorp reported net
income of US$114.6 million.  The net income in 2004 was US$177.3
million.  The 2005 figures include one-time expenses of US$8.5
million for a possible settlement with the SEC, US$74.25 million
for a possible settlement of the pending class action lawsuit,
and US$6.0 million in legal, accounting and consulting fees
related to the Audit Committee's internal review and related
legal issues.

In addition, the 2005 results include a non-cash charge of
US$73.4 million resulting from the changes in the value of
derivatives. The change in the fair value of derivatives in 2004
was a non-cash gain of US$14.3 million.

"This is a significant day for First BanCorp and its
shareholders", said Luis M. Beauchamp, President and Chief
Executive Officer of First BanCorp.  "As we move towards the
filing of the 2005 10-K, First BanCorp has a strong financial
foundation, a growing presence in both established and new
markets, and a strategic plan to drive future growth in all
businesses.  We are steadfast in our commitment to be a leading
financial services organization for the benefit of our
shareholders."

Net interest income in 2005 increased to US$432.3 million from
US$397.5 million in 2004.  During 2005, net interest income was
negatively impacted by the non-cash changes in the fair value of
derivative instruments, mainly interest rate swaps that hedge
brokered deposits.  Excluding the valuation of the derivatives,
net interest income would have been US$505.7 million and
US$383.2 million for 2005 and 2004, respectively, an increase of
US$122.5 million or 32%.  The increase in net interest income
for the year 2005 was mainly driven by the increase in the
average volume of earning assets of US$4.3 billion attributable
primarily to the growth in the Corporation's loan and investment
portfolios, especially commercial loan and residential real
estate loan portfolios and government agency securities.

The exclusion of unrealized changes in the fair value of
derivative instruments (mainly changes in the fair value of
interest rate swaps) from the analysis of net interest income
provides meaningful information about the Corporation's net
interest income and facilitates comparability and analysis.  The
changes in the fair value of the derivative instruments have no
effect on interest earned or interest due on interest-earning
assets or interest-bearing liabilities, respectively, or on
interest payments exchanged with swap counterparties.  In
addition, since the Corporation intends to hold the interest
rate swaps until they mature because, economically, the interest
rate swaps are satisfying their intended results, the unrealized
changes in fair value will reverse over the remaining lives of
the swaps.  Finally, First BanCorp previously announced that, on
April 3, 2006, it adopted the long-haul method of effectiveness
testing under Statement of Financial Accounting Standards No.
133, "Accounting for Derivative Instruments and Hedging
Activities", for substantially all of the interest rate swaps
that hedge the brokered CDs and medium-term notes issued by its
main subsidiary, FirstBank.  After that date, changes in the
value of FirstBank's brokered CDs and medium-term notes should
substantially offset the changes in the value of the interest
rate swaps.  Management does not expect additional significant
non-cash losses other than those previously reported as having
been recognized through March 31, 2006, as a result of the
misapplication of the short-cut method.

The provision for loan losses totaled US$50.6 million or 112% of
net charge-offs for 2005, compared with US$52.8 million or 138%
of net charge-offs for 2004.  Net charge-offs amounted to
US$45.0 million for 2005 and US$38.1 million for 2004.  Net
charge-offs to average loans outstanding during the period were
0.39% as compared with 0.48% in 2004. The increase of US$6.9
million in net charge-offs in the year 2005, compared with the
previous year, was mainly composed of US$5 million of higher
charge-offs in consumer loans, primarily auto loans, due to
higher delinquencies during 2005.  Auto loans are collateralized
by the underlying automobile units.  Commercial loans that were
charged-off amounted to US$8.6 million for 2005, an increase of
US$2.4 million when compared with US$6.2 million in 2004.  
Recoveries made from previously written-off accounts were US$6.9
million in 2005 compared with US$5.9 million in 2004.  The
decrease in the provision in 2005 is primarily attributable to
the seasoning of the corporate commercial loans portfolio and to
a decrease in the specific reserve allocated to a commercial
loan based on new facts that satisfied the Corporation as to the
ultimate recoverability of the loan.  

The Corporation has not incurred significant losses as a
percentage of its commercial loans receivable since it started
emphasizing the corporate commercial lending activities in the
late 1990s; therefore, the provision for inherent losses in this
portfolio has decreased.  The provision for 2005 is mainly
attributable to the consumer loans portfolio and to a lesser
extent to the construction loans portfolio; which increased
significantly in 2005 from loans disbursed by the Corporation's
loan agency in Coral Gables, Florida.  The commercial loans
portfolio includes the secured loans to local financial
institutions; these institutions have always paid the loans in
accordance with the established terms and conditions. Further,
these commercial loans are mainly secured by residential real
estate collateral.  Due to the historical trend of increasing
home values, losses in the residential mortgage portfolio have
been minimal; therefore, reserves allocated to the secured loans
to local financial institutions and to the Corporation's
residential real estate portfolios are not significant.

The allowance for loan losses at Dec. 31, 2005 totaled US$148.0
million as compared with US$141.0 million at Dec. 31, 2004.  
Though non-accruing loans increased US$42.7 million during 2005,
US$23.2 million of such increase represented residential real
estate loans for which historical losses have been minimal and
as such reserves allocated to this portfolio are not
significant.

Non-interest income for 2005 increased by US$3.5 million over
2004, mainly attributable to net gains realized in 2005 from the
sale of investments.  The net gains on investments amounted to
US$12.3 million and US$9.5 million, for 2005 and 2004,
respectively.

Non-interest expenses increased to US$315.1 million in 2005 up
from US$180.5 million in 2004, an increase of US$134.6 million.
Salaries and benefits increased to US$102.1 million in 2005 as
compared with US$82.4 million in 2004, which, in addition to an
increase in average salary and employee benefits, was mainly
attributable to an increase in headcount from approximately
2,300 persons at Dec. 31, 2004 to approximately 2,700 at Dec.
31, 2005.  This increased headcount was primarily due to growth
in operations and the acquisition of Unibank in March 2005,
which was subsequently rebranded FirstBank Florida. In addition,
non-interest expenses in 2005 include US$88.8 million of one-
time expenses as mentioned before.

Total provision for income tax amounted to US$15.0 million (or
12% of pre- tax earnings) for 2005 as compared with US$46.5
million (or 21% of pre-tax earnings) in 2004.  The current
provision for income taxes amounted to US$75.2 million, compared
with US$53.0 million in 2004.  The increase in the current
provision for 2005 was attributable to significant increases in
the Corporation's taxable income generated from the loan
portfolios.  The change in the proportion of exempt and taxable
income resulted in a higher effective tax rate.  In addition,
the current provision was impacted by the Puerto Rico transitory
surtax of 2.5% over net taxable income that resulted in an
additional income tax provision of US$3.6 million.  The total
provision for income tax was also affected by a deferred tax
benefit of US$60.2 million in 2005 and US$6.5 million in 2004.
These deferred tax benefits are mainly attributable to changes
in the allowance for loan losses, losses resulting from the
valuation of derivative instruments and in 2005, the deferred
tax asset recorded in connection with the accrual relating to
the class action lawsuit.

Total assets at Dec. 31, 2005 and 2004 were US$19.9 billion and
US$15.6 billion, respectively. The growth was mainly driven by
increases in the Corporation's loan and investment portfolios.  
Net loans increased 31% to US$12.5 billion, when compared with
the previous year, resulting from strong commercial loan
originations in Puerto Rico, increases in construction loans
disbursed by the Corporation's Florida loan agency, residential
mortgages and consumer loans originations and the acquisition of
FirstBank Florida, which loan portfolio is mainly composed of
residential and commercial mortgages.  The increases were
partially offset by decreases in secured loans to local
financial institutions.  Total investment increased by
approximately US$1 billion from 2004, mainly attributable to
purchases of government agencies and mortgage-backed securities
during 2005 when compared with 2004.

Total deposits are composed of branch-based deposits, brokered
CDs and, to a lesser extent, institutional deposits.
Institutional deposits include, among others, certificates
issued to agencies of the Government of Puerto Rico and to
Government agencies in the Virgin Islands.  Deposits at Dec. 31,
2005 and 2004 were US$12.5 billion and US$7.9 billion,
respectively; the increase is mainly attributable to issuances
of brokered CDs which were mainly used to fund loan originations
and to replace advances from the Federal Home Loan Bank as these
matured.

The Corporation uses federal funds purchased, repurchase
agreements, advances from FHLB, notes payable and other
borrowings, such as trust preferred securities, as additional
funding sources.  At Dec. 31, 2005, these borrowings totaled
US$5.8 billion as compared with US$6.3 billion at Dec. 31, 2004,
respectively.

The Corporation's stockholders' equity amounted to US$1,198
million and US$1,204 million at Dec. 31, 2005 and 2004,
respectively.  Total stockholders' equity decreased by US$6.0
million mainly due to cash dividends of US$62.9 million and a
negative non-cash valuation of securities available-for- sale of
US$59.3 million offset by earnings of US$114.6 million and the
issuance of common stock through the exercise of stock options
with proceeds of US$2.0 million.

First BanCorp and its banking subsidiaries were "well-
capitalized" for bank regulatory purposes as of Dec. 31, 2005.

         One-time Increases to Operating Expenses

Following the previously announced internal review by the
Corporation's Audit Committee, the Corporation and certain of
its officers and directors and former officers and directors
were named as defendants in separate class action lawsuits filed
late in 2005. These securities class actions were later
consolidated.  First BanCorp has since been engaged in
discussions with the lead plaintiff for a possible settlement of
the class action and has accrued US$74.25 million in its
consolidated financial statements for the year ended Dec. 31,
2005 in connection with a potential settlement.  There can be no
assurance that the amount accrued will be sufficient and the
Corporation cannot predict at this time the timing or final
terms of any settlement.

First BanCorp has also been engaged in discussions with the
staff of the SEC regarding a possible resolution of its
investigation relating to the matters that resulted in the
Corporation's restatement of its financial statements, and has
accrued US$8.5 million in its consolidated financial statements
for the year ended Dec. 31, 2005, in connection with a potential
settlement of the SEC Staff's investigation of the Corporation.  
Any settlement is subject to the approval of the SEC.  There can
be no assurance that the Corporation's efforts to resolve the
SEC's investigation with respect to the Corporation will be
successful, or that the amount accrued will be sufficient, and
the Corporation cannot predict at this time the timing or final
terms of any settlement.

Professional fees increased by 221% to US$13.4 million in 2005
as compared with US$4.2 million in 2004. The increase was
primarily due to one-time expenses of approximately US$6.0
million of legal, accounting and consulting fees associated with
the internal review conducted by the Corporation's Audit
Committee, the 2004 restatement process and other related legal
proceedings.

             Key Developments in 2005 and 2006

Progress in Fulfilling Regulatory Requirements

First BanCorp has made significant progress in fulfilling the
requirements of the previously announced Cease and Desist Order
dated March 16, 2006, entered into with the Federal Reserve
Bank, the FDIC and the Office of the Commissioner of Financial
Institutions of Puerto Rico relating to mortgage-related
transactions with Doral Financial Corporation and R&G Financial
Corporation.  The Consent Orders required First BanCorp and
FirstBank to take various actions, including engaging an
independent consultant to review mortgage portfolios,
documenting the loans with Doral and R&G resulting from the need
to classify the mortgage-related transactions as secured
commercial loans, submitting capital and liquidity contingency
plans, providing notice prior to the incurring of additional
debt or the restructuring or repurchasing of debt, obtaining
approval prior to purchasing or redeeming stock, filing
corrected regulatory reports upon completion of the restatement
of financial statements, and obtaining regulatory approval prior
to paying dividends after those payable in March 2006.

Reduction of Loans Extended to Other Financial Institutions: As
previously announced in 2006, First BanCorp has worked with both
Doral and R&G to reduce and ultimately eliminate the balance of
the commercial loans resulting from First BanCorp's previously
announced revised classification of mortgage-related
transactions with those financial institutions as secured
commercial loans from the Corporation's balance sheet.  In May
2006, FirstBank Puerto Rico received a cash payment from Doral
Financial Corporation of approximately US$2.4 billion,
substantially reducing the balance of the secured commercial
loan to that institution.  In the fourth quarter of 2005, R&G
made a partial payment of US$137 million.  First BanCorp
continues to hold discussions with both institutions to further
reduce the remaining balances.  First BanCorp no longer makes
bulk purchases of mortgages in the secondary market and in the
future the mortgage portfolio will be built primarily
internally.

Enhanced Governance and Controls

First BanCorp has undertaken a number of procedures and
instituted a number of controls to help ensure the proper
collection, evaluation and disclosure of the information to be
included in the Corporation's SEC reports and continues to
implement additional tools and procedures to address identified
material weaknesses in its disclosure controls and procedures.  
Key initiatives instituted by management and the Board of
Directors have included changes in management and the
composition of the Board, a full corporate governance review,
the implementation of an enhanced risk management program and
ethics training for directors and employees.

"We are working diligently to return to normal financial
reporting after completion of our 2006 financial statements and
the quarterly reports," said Fernando Scherrer, Chief Financial
Officer of First BanCorp.

                  Strategic Initiatives

First BanCorp undertook a series of strategic initiatives in
2005 and 2006 throughout the organization to generate growth and
improve financial performance.  Central to the strategy was
positioning FirstBank as an integrated "one stop shop" for
individuals, small and medium-size businesses and larger
corporate customers, providing multiple product including
checking accounts, CDs, mortgages, construction loans, small
business lines of credit, insurance, and auto and truck leasing
and rental.  FirstBank's long-term growth strategy also includes
expanding its geographic presence, building upon its strong
presence in Puerto Rico and on its existing branch network in
the U.S. and British Virgin Islands.  FirstBanCorp continues to
actively assess opportunities to enter markets elsewhere in the
Caribbean and the U.S., which was initiated with the acquisition
of Unibank.

"The past year has clearly been difficult at First BanCorp, but
we continue to take the right steps to protect and enhance long-
term shareholder value," said Mr. Beauchamp.  "While we strongly
believe that our promising growth opportunities create a bright
future for First BanCorp, we are also acutely aware of the
existing challenges.  A slowing Puerto Rican economy, flat to
inverted yield curve and tax increases pose challenges on the
Island.  We remain responsive to these hurdles by continually
refining our deep commitment to customer service and quality as
well as reviewing our long-term strategy."

              2005 and 2006 Financial Reporting

The Corporation expects to file its 2005 Annual Report on Form
10-K in February 2007.  The Corporation has not yet filed with
the SEC an amended quarterly report on Form 10-Q for the fiscal
quarter ended March 31, 2005, or quarterly reports on Form 10-Q
for the fiscal quarters ended June 30, 2005, September 30, 2005,
March 31, 2006, June 30, 2006 and Sept. 30, 2006.  The
Corporation expects to file these reports or the financial
information required by these reports as soon as practicable
after the filing of its annual report on Form 10-K for year
ended Dec. 31, 2006.

First BanCorp (NYSE: FBP) -- http://www.firstbankpr.com/-- is
the parent corporation of FirstBank Puerto Rico, a state
chartered commercial bank with operations in Puerto Rico, the
Virgin Islands and Florida; of FirstBank Insurance Agency; and
of Ponce General Corporation.  First BanCorp, FirstBank Puerto
Rico and FirstBank Florida, formerly UniBank, the thrift
subsidiary of Ponce General, all operate within U.S. banking
laws and regulations.

                        *    *    *

As reported in the Troubled Company Reporter on March 22, 2006,
Fitch Ratings affirmed the ratings and Outlook for First Bancorp
and FirstBank Puerto Rico: long-term Issuer Default Rating
'BB'/short-term 'B'.  Fitch said the rating outlook remains
negative.

As reported 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.


PIER 1: Sales Decline 13.7% in January 2007
-------------------------------------------
Pier 1 Imports, Inc., reported that sales for the four-week
period ended Jan. 27, 2007, aggregated US$110,668,000 a decrease
of 13.7% from US$128,264,000 last year, and comparable store
sales declined 13.2%. Year-to-date sales of US$1,502,713,000
were down 10.1% from US$1,671,240,000 last year, and comparable
store sales declined 11.5%.

Based in Fort Worth, Texas, Pier 1 Imports Inc. (NYSE:PIR)
-- http://www.pier1.com/-- is a specialty retailer of imported
decorative home furnishings and gifts with Pier 1 Imports(R)
stores in 49 states, Puerto Rico, Canada, and Mexico, and Pier 1
kids(R) stores in the United States.

                        *    *    *

As reported in the Troubled Company Reporter on Jan. 19, 2007,
Moody's Investors Service downgraded Pier 1 Imports Inc.'s
corporate family rating to Caa1 from B3 following its continuing
operating struggles and modest performance over the 2006 holiday
season.  Moody's said the rating outlook was revised to
negative.


SIMMONS CO: Moody's Assigns Caa1 Rating on US$275-Mil. Loan
-----------------------------------------------------------
Moody's Investors Service assigned a Caa1 rating to Simmons
Co.'s US$275 million super holdco toggle loan and affirmed the
company's B2 corporate family rating.  At the same time, Moody's
upgraded Simmons' senior secured credit facility to Ba2, its
US$200 million subordinated notes to B2 and its senior discount
notes to B3.  The ratings outlook was revised to stable from
positive due to the higher leverage and aggressive financial
posture resulting from this transaction.

Kevin Cassidy, Vice President/Senior Analyst at Moody's said
"prior to this transaction, the corporate family rating was very
strongly positioned at B2 as the positive outlook had
indicated."  He further stated that "while this transaction
clearly signals a more aggressive financial posture by the
company and its financial sponsor, Thomas H. Lee Partners, which
will constrain any upwards rating momentum for the foreseeable
future, the company's improved financial performance and
continued strong market position support maintaining a B2
corporate family rating, although it is weakly positioned".  

Cassidy said he believes that "the company is in a better
position to weather the current uncertainty in consumer spending
because of its improved free cash flow and operating margins
following its recent operational improvements in streamlining
its manufacturing facilities and its marketing and distribution
functions"

The net proceeds from the loan are expected to be used to issue
a dividend to certain shareholders and transaction expenses.  
"Through a combination of this transaction and the dividend it
received with the issuance of US$165 million discount notes in
December 2004, TH Lee and other original investors have more
than recouped its US$330 million initial investment in the
company" said Cassidy.

The ratings for the toggle loan reflect both the overall
probability of default of the company, to which Moody's assigns
a PDR of B2, and a loss given default of LGD 5.  The toggle loan
will be issued by Simmons Holdco, Inc, a holding company created
for this transaction, without upstream support from any
operating subsidiaries or Simmons Company.

The new toggle loan will be due in February 2012 and the company
intends to pay cash interest for the first year.  The company
may elect to PIK the coupon after six months, although the rate
increases by 75bps.  The one notch upgrade of each of the
company's existing ratings reflect a lower expected loss driven
largely by the additional debt cushion provided by the new
US$275 million toggle loan; on a relative basis, the existing
debt has a more senior position in the company's capital
structure because of the new toggle loan.

The following ratings/assessments were affected by this action:

   -- Corporate family rating affirmed at B2;

   -- Probability-of-default rating affirmed at B2;

   -- US$75 million senior secured term loan B due 2012
      upgraded to Ba2 from Ba3 ;

   -- US$492 million senior term loan D due 2011 upgraded to
      Ba2 from Ba3 (LGD-2, 27%);

   -- US$200 million senior subordinated notes due 2014 upgraded
      to B2 from B3;

   -- US$197 million secured discount notes due 2014 upgraded
      to B3 from Caa1; and

   -- US$275 million Super Holdco Toggle loan assigned at Caa1.

                  About Simmons Company

Atlanta-based Simmons Co. is one of the world's largest mattress
manufacturers, manufacturing and marketing a broad range of
products including Beautyrest, BackCare, BackCare Kids, Olympic
Queen, Deep Sleep and sang.  The company operates 18 plants
throughout the United States and Puerto Rico.  Simmons is
committed to helping consumers attain a higher quality of sleep
and supports that mission through its Better Sleep Through
Science philosophy, which includes developing superior
mattresses and promoting a sound and smart sleep routine.


SIMMONS CO: Parent to Borrow US$275-Mil. from Deutsche, et al.
--------------------------------------------------------------
Simmons Co. disclosed a series of transactions in which Simmons
Holdco, Inc., an entity that will become the new parent of
Simmons Co. following these transactions, expects to enter into
a loan agreement with Deutsche Bank Securities Inc., Goldman
Sachs Credit Partners L.P. and Citigroup Global Markets Inc., as
arrangers, and other lenders to be named in the loan agreement,
providing for a US$275,000,000 aggregate principal amount senior
unsecured term loan.

In connection with the Loan, Simmons Co. will merge with a newly
formed subsidiary of Simmons Holdco, with Simmons Co. as the
surviving corporation.  Current holders of common stock of
Simmons Co. will receive in the Merger stock of Simmons Holdco
and certain stockholders will also receive cash.  Following the
Merger, Simmons Co. will be a wholly owned subsidiary of Simmons
Holdco.

It is anticipated that Simmons Holdco will use the net proceeds
from the Loan to pay transaction expenses and cash consideration
to certain current stockholders of Simmons Company in connection
with the Merger.

                     About Simmons Co.

Headquartered in Atlanta, Georgia, Simmons Company -
http://www.simmons.com/-- through its indirect subsidiary  
Simmons Bedding Company, is one of the world's largest mattress
manufacturers, manufacturing and marketing a broad range of
products including Beautyrest(R), BackCare(R), BackCare Kids(R)
and Deep Sleep(R). Simmons Bedding Company operates 21
conventional bedding manufacturing facilities and two juvenile
bedding manufacturing facilities across the United States,
Canada and Puerto Rico.

Moody's Investors Service assigned a Caa1 rating to Simmons
Co.'s US$275 million super holdco toggle loan and affirmed the
company's B2 corporate family rating.  


WESCO INT'L: Board Authorizes US$400MM Stock Repurchase Program
---------------------------------------------------------------
WESCO International Inc.'s Board of Directors has authorized a
stock repurchase program in the amount of up to US$400 million.  
The shares may be purchased from time to time in the open market
or through privately negotiated transactions.  The stock
repurchase program may be implemented or discontinued at any
time by the company.

Headquartered in Pittsburgh, Pennsylvania, WESCO International,
Inc., is a publicly traded Fortune 500 holding company, whose
primary operating entity is WESCO Distribution, Inc.  WESCO
Distribution is a distributor of electrical construction
products and electrical and industrial maintenance, repair and
operating supplies, and is the nation's largest provider of
integrated supply services.  WESCO operates eight fully
automated distribution centers and approximately 370 full-
service branches in North America and selected international
markets including Mexico and Puerto Rico, providing a local
presence for area customers and a global network to serve multi-
location businesses and multi-national corporations.

                        *    *    *

As reported in the Troubled Company Reporter on Oct. 27, 2006,
Standard & Poor's Ratings Services assigned its 'B' rating to
WESCO International Inc.'s proposed US$250 million convertible
senior unsecured notes 2026.  Proceeds from the offering will be
used to help finance WESCO's acquisition of Communications
Supply Holdings Inc. for US$525 million.  WESCO International is
the parent company of WESCO Distribution Inc., its main
operating subsidiary.

Standard & Poor's also affirmed its 'BB-' corporate credit
rating on the electrical distributor.  The outlook is stable.


WESCO INT: Posts US$1.4 Bil. Net Sales in 2006 Fourth Quarter
-------------------------------------------------------------
WESCO International, Inc., reported its 2006 fourth quarter
financial results.

                  Fourth Quarter Results

Consolidated net sales for the fourth quarter of 2006 were
US$1,376 million compared with US$1,237 million in 2005, an
increase of 11.3%. Gross margin for the quarter improved to
20.9% compared with 20.4% from a year ago.  Operating income for
the current quarter totaled US$93 million versus US$75 million
in last year's comparable quarter. Depreciation and amortization
included in operating income was US$9.4 million for 2006
compared with US$7.3 million in 2005.  The fourth quarter 2006
effective tax rate was reduced to 27.1% primarily due to
increased utilization of foreign tax credits, and a one-time
benefit of US$0.04 per share was realized. Net income for this
quarter was US$58 million versus US$40 million in the comparable
2005 quarter.  Diluted earnings per share for the quarter were
US$1.10 per share, which includes the one-time tax benefit,
versus US$0.80 per share in 2005, which included charges net of
income taxes of US$3.3 million related to the retirement of
US$199.7 million of 9.125% senior subordinated notes and US$1.0
million for charges net of income taxes relating to the
repatriation of foreign income.

                     Year-end Results

For the year 2006, net sales increased 20.3% to US$5,321 million
compared with US$4,421 million in 2005.  Gross margin for the
year was 20.4% compared to 19.0% in 2005.  Operating income
totaled US$365 million compared with US$209 million in 2005, an
increase of 74%. Depreciation and amortization included in
operating income was US$29 million and US$19 million for the
years ended 2006 and 2005, respectively.  Net income for 2006
was US$217 million compared with US$104 million last year.  
Diluted earnings per share were US$4.14, which includes the one-
time tax benefit, in 2006 versus US$2.10 in 2005, an increase of
97%.  Included in 2005 net income were three significant charges
net of income taxes:

   -- US$10 million related to the retirement of US$324
      million of senior subordinated notes,

   -- US$6.9 million related to a settlement of a lawsuit, and

   -- US$1.0 million for the repatriation of foreign income.

                   Share Repurchase Plan

WESCO's Board of Directors has authorized a stock repurchase
program in the amount of up to US$400 million.  The shares may
be purchased from time to time in the open market or through
privately negotiated transactions.  The stock repurchase program
may be implemented or discontinued at any time by the company.

     Accounts Receivable Securitization Program Amended

In December, WESCO amended its Accounts Receivable
Securitization Facility to provide better financial statement
transparency and eliminate the need for pro forma reconciliation
to fully describe receivable and debt positions.  At
Dec. 31, 2006, the company's balance sheet showed US$391 million
in accounts receivable and short-term debt, which were
historically presented as "off-balance sheet" amounts. Beginning
with the March 2007 quarter, expenses related to the facility
and previously recorded as other expense will be classified as
interest expense.

Stephen A. Van Oss, Senior Vice President and Chief Financial
and Administrative Officer, stated, "We are very pleased with
our overall performance for the quarter. Organic sales increased
8% over the fourth quarter of 2005 after adjusting for the
benefit from last year's hurricane activity.  Gross margins for
the quarter were a record high of 20.9% aided by strong
performance from our latest acquisition and continuing corporate
initiatives on margin improvement.  Our performance for the full
year 2006 was outstanding in virtually every key financial
metric.  For the year, sales grew 20.3%, operating margins
increased to 6.9% from 4.7% and earnings per share increased by
97% to US$4.14.  The integration of Communications Supply
Corporation, acquired in November, is underway, and we are
confident that this business will be accretive to 2007 earnings
per share by US$0.35 to US$0.40 as previously disclosed."

Mr. Van Oss continued, "WESCO's financial condition is
excellent.  Improved net income and good management of our
working capital resulted in strong free cash flow for the
quarter and year of US$67 million and US$199 million,
respectively.  Cash has been used to fund acquisitions, maintain
working capital in support of growth, and reduce the financial
leverage of the company.  Our announcement of a US$400 million
share repurchase program reflects our confidence in the strength
of our business model and our willingness to utilize our
improved financial position to provide value to our
shareholders."

Chairman and CEO, Roy W. Haley, commented, "Performance in 2006
has been exceptional, and we are confident that 2007 will be
another record-setting year.  During the quarter, we completed
the acquisition of Communications Supply Corporation, and
results to date strengthen our view that coordinated marketing
and sales activities will generate many new customer service and
growth opportunities.  Sales comparisons for the quarter are
stronger than the numbers might indicate due to the unusually
high hurricane related sales activity during last year's fourth
quarter.  We are setting record levels for sales per day and
sales per employee, and we are making good progress on market
development initiatives.  From an operational perspective, I am
particularly pleased with our organization's ability to continue
to generate margin improvement and realize operating
efficiencies. Continuous improvement programs in all areas of
the company have good momentum, and we are on track to achieve
our previously announced longer term operating profit objective
of 8%."

Headquartered in Pittsburgh, Pennsylvania, WESCO International,
Inc., is a publicly traded Fortune 500 holding company, whose
primary operating entity is WESCO Distribution, Inc.  WESCO
Distribution is a distributor of electrical construction
products and electrical and industrial maintenance, repair and
operating supplies, and is the nation's largest provider of
integrated supply services.  WESCO operates eight fully
automated distribution centers and approximately 370 full-
service branches in North America and selected international
markets including Mexico and Puerto Rico, providing a local
presence for area customers and a global network to serve multi-
location businesses and multi-national corporations.

                        *    *    *

As reported in the Troubled Company Reporter on Oct. 27, 2006,
Standard & Poor's Ratings Services assigned its 'B' rating to
WESCO International Inc.'s proposed US$250 million convertible
senior unsecured notes 2026.  Proceeds from the offering will be
used to help finance WESCO's acquisition of Communications
Supply Holdings Inc. for US$525 million.  WESCO International is
the parent company of WESCO Distribution Inc., its main
operating subsidiary.

Standard & Poor's also affirmed its 'BB-' corporate credit
rating on the electrical distributor.  S&P said the outlook is
stable.


WESCO INT: S&P Says Repurchase Program Won't Affect Ratings
-----------------------------------------------------------
Standard & Poor's Ratings Services said that its ratings and
outlook on WESCO International Inc. (BB-/Stable/--) and its
principal operating subsidiary, WESCO Distribution Inc., are not
affected by the company's plan to repurchase US$400 million of
common stock.  The program is expected to be completed in the
2007 calendar year and will be funded with capacity currently
available under the company's working capital facilities.  
Standard & Poor's expects that WESCO will be able to maintain
liquidity and credit metrics, including funds from operations to
debt and leverage ratios, that are adequate for the current
ratings after funding the share repurchase program. However,
Standard & Poor's notes that this sizable share repurchase
program follows closely the US$525 million acquisition of
Communications Supply Holdings Inc.

Headquartered in Pittsburgh, Pennsylvania, WESCO International,
Inc., is a publicly traded Fortune 500 holding company, whose
primary operating entity is WESCO Distribution, Inc.  WESCO
Distribution is a distributor of electrical construction
products and electrical and industrial maintenance, repair and
operating supplies, and is the nation's largest provider of
integrated supply services.  WESCO operates eight fully
automated distribution centers and approximately 370 full-
service branches in North America and selected international
markets including Mexico and Puerto Rico, providing a local
presence for area customers and a global network to serve multi-
location businesses and multi-national corporations.




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


HILTON HOTELS: Discloses Executive Management Changes
-----------------------------------------------------
Hilton Hotels Corp. disclosed appointments and executive
management changes.  Effective March 1, 2007, these executives
will report directly to Matthew J. Hart, President and Chief
Operating Officer:

   * Thomas L. Keltner assumes the title of Executive Vice
     President, Hilton Hotels Corporation and Chief Executive
     Officer - Americas and Global Brands.  In this role, he
     will have operational responsibility for The Americas, in
     addition to overseeing the global Hilton Family of Brands.
     Mr. Keltner had been President - Brand Performance and
     Franchise Development Group.

   * Ian R. Carter remains Executive Vice President, Hilton
     Hotels Corp. and Chief Executive Officer - Hilton
     International, with responsibility for hotel operations
     outside The Americas.

   * James T. "Tim" Harvey assumes the title of Executive Vice
     President - Global Distribution Services and Chief
     Information Officer, overseeing the company's distribution
     activities in addition to its technology programs.  Mr.
     Harvey had been Executive Vice President and Chief
     Information Officer.

   * Antoine Dagot is promoted to Executive Vice President,
     Hilton Hotels Corporation in addition to his existing
     position as President and Chief Executive Officer, Hilton
     Grand Vacations Company, the company's timeshare business.

   * Molly McKenzie-Swarts is promoted to Executive Vice
     President - Human Resources, Diversity and Administration.
     Ms. McKenzie-Swarts had been Senior Vice President - Human
     Resources and Administration.

"These are truly exciting times for our company, and it is our
management strength that will help us continue enhancing our
position as the worldwide lodging industry leader," Mr. Hart
said.  "This is a talented and experienced team of executives,
and they in turn lead a group of dedicated professionals that is
the best in the industry."

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.

                        *    *    *

As reported in the Troubled Company Reporter on Feb. 2, 2007,
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.


ROYAL CARIBBEAN: Declares US$0.15 Per Share Quarterly Dividend
--------------------------------------------------------------
Royal Caribbean Cruises Ltd.'s board of directors declared a
quarterly dividend of US$0.15 per share payable on
March 30, 2007, to shareholders of record at the close of
business on March 1, 2007.

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

                        *    *    *

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




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


* URUGUAY: Dinamige Calls on Parties for Uranium Exploration
------------------------------------------------------------
Uruguayan National Mining and Geology Department Dinamige is
advancing to call interested parties for uranium exploration in
the country, Bnamericas reports.

"It is a request to determine if there are interested parties
based on some queries we have received to let private companies
explore for uranium," BNamericas said, citing Dinamige director
Luis Ferrari.  He added that authorities have begun
administering the legal terms and conditions that go with the
project.

The Uruguayan mining law states that only the state can mine for
minerals that are used for energy, and if ever a third party is
involved, a bidding process has to be conducted, Mr. Ferrari
told BNamericas.  He added that uranium exploration has already
been carried out before but with failed results.

                        *    *    *

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: Seeks to Increase Stake in Sincor
---------------------------------------------------------
Venezuelan state-run Petroleos de Venezuela is negotiating with
its partners in Sincor to raise its stake in the latter,
Business News Americas reports, citing a Sincor spokesperson.

The Sincor official told the press, "Representatives from the
three companies have met specifically about this and will
continue meeting.  No agreement has yet been reached."

BNamericas relates that Sincor is the largest Orinoco extra-
heavy crude upgrade project.  France's Total holds a 47% stake
in Snicor, Norway's Statoil owns with 15%, and Petroleos de
Venezuela has 38% in the project.

Rafael Ramirez, Venezuela's energy and oil minister and
Petroleos de Venezuela's president, told BNamericas that
President Hugo Chavez decided to nationalize four Orinoco
projects due to the failure to reach an accord on increasing
Petroleos de Venezuela's stake in Sincor during negotiations in
December 2006.

BNamericas underscores that the other three Orinoco projects
include:

          -- Ameriven,
          -- Petrozuata, and
          -- Cerro Negro.

The Orinoco projects have capacity to produce 620,000 barrels
per day of oil, BNamericas notes.   

However, the projects are producing less than 600,000 barrels
per day, BNamericas says, citing the International Energy
Agency.  Sincor has the largest production at almost 200,000
barrels per day.

The report says that the other partners in the Orinoco projects
are:

          -- UK's BP,
          -- US' ConocoPhillips,
          -- US' ExxonMobil, and
          -- US' Chevron.

BNamericas underscores that ExxonMobil said it was negotiating
with Petroleos de Venezuela regarding Cerro Negro, another of
the Orinoco projects.

The solution being talked about was the creation of a joint
venture where Petroleos de Venezuela would own at least 51%,
which is similar to other exploration and production projects in
Venezuela, BNamericas states, citing an ExxonMobile
spokesperson.

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

                        *    *    *

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


                        ***********


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

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