TCRLA_Public/070206.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Tuesday, February 6, 2007, Vol. 8, Issue 26

                          Headlines

A R G E N T I N A

ACXIOM CORP: Declares US$0.06 Per Share Quarterly Dividend
FIDUGRARIA SA: Last Day for Claims Verification Is on March 22
NOVI-CONT: Proofs of Claim Verification Is Until March 7
SOL Y VALLES: Deadline for Claims Verification Is on March 20
TRAILLER SA: Trustee Verifies Proofs of Claim Until March 20

TYSON FOODS: Executives Positive on Firm's Profitability
WENDY'S INT'L: Posts US$2.4 Billion Revenues for Full Year 2006
ZONDA COLOR: Claims Verification Deadline Is on March 21

B E R M U D A

BERMUDA BAKERY: Schedules Final General Meeting on March 9
IMARX NEWCO: Final General Meeting Is Set for March 9
SRO RUN-OFF: Final General Meeting Is Set for March 5
VIEW ENTERPRISES: Schedules Final General Meeting on Feb. 26
WMG EUROPEAN: Final General Meeting Is Set for March 2

WMG EUROPEAN (MASTER): Proofs of Claim Must be Filed by Feb. 9

B O L I V I A

UNIVERSAL COMPRESSION: Unit Declares Prorated Cash Distribution

* BOLIVIA: 44 contracts with 12 Firms Won't Come Into Effect
* BOLIVIA: Vice-President Defends Morales Olivera Appointment

B R A Z I L

ALCATEL-LUCENT: Jyske Bank Analyst Reaffirms Firm's Sell Rating
AMERICAN AXLE: Incurs US$222.5 Mil. Net Loss in Full Year 2006
BANCO BRADESCO: Losing Joint Venture with Federal Government
BANCO PINE: S&P Says IPO Won't Affect Ratings
BANCO VOTORANTIM: Fitch Affirms BB+ Foreign Currency Rating

COMPANHIA SIDERURGICA: Gaining Despite Losing Corus Auction
COMPANHIA SIDERURGICA: Fitch Affirms Ratings After Losing Bid
HAYES LEMMERZ: Discloses Other Initiatives to Streamline Assets
METSO CORP: Paper Unit Inks EUR10-Million Supply Deal to Holmen
NET SERVICOS: Posts BRL1.93 Billion Net Revenue for Year 2006

NOVELIS INC: Launches New Solution Center to Drive Innovation
PETROLEO BRASILEIRO: Launching Cubatao Plant Construction
PETROLEO BRASILEIRO: Aims for 1.92MM Barrels Per Day Oil Output
TIMKEN CO: Lower Automobile Demand Impacts 4th Quarter Results
TIMKEN CO: To Supply, Repair & Replace Bearings for ELH

TK ALUMINUM: Updates on Liquidity Situation & Asset Sale Deals
USINAS SIDERURGICAS: Won't Export Steel to China

* BRAZIL: Will Cancel Joint Venture with Banco Bradesco

C A Y M A N   I S L A N D S

AIR TRANSPORT: Creditors Must File Proofs of Claim by Feb. 15
ASIA CORPORATE: Last Day to File Proofs of Claim Is on Feb. 16
ALPHAPLUS CAPITAL: Proofs of Claim Filing Is Until Feb. 16
BAREP SYSTEMATIC: Calls Shareholders for Feb. 9 Final Meeting
BBVA GLOBAL: Deadline for Proofs of Claim Filing Is on Feb. 10

BENNETT LAWRENCE: Final General Meeting Is Set for Feb. 9
BLUEGRASS ABS: Invites Shareholders for Final Meeting on Feb. 9
CAMARILLA INVESTMENTS: Final General Meeting Is on Feb. 9
CASTLERIGG GLOBAL: Calls Shareholders for Feb. 9 Final Meeting
CASTLERIGG GO: Final Shareholders Meeting Is on Feb. 9

CGO LTD: Shareholders to Convene for Final Meeting on Feb. 9
FLAMINGO DAZE: Invites Shareholders for Final Meeting on Feb. 9
HANSARD HOLDINGS: Final Shareholders Meeting Is on Feb. 9
INVESTCORP PRINCIPAL: Proofs of Claim Must be Filed by Feb. 12
INVESTCORP PRINCIPAL: Final General Meeting Is on Feb. 16

POST MULTI-STRATEGY: Final Shareholders Meeting Is on Feb. 9
PTF LTD: Shareholders to Convene for Final Meeting on Feb. 9
RECON ARBITRAGE: Shareholders to Gather for Feb. 9 Final Meeting
RGI LIMITED: Final Shareholders Meeting Is Set for Feb. 9
UBS (CAY): Shareholders to Gather for Final Meeting on Feb. 9

UBS (CAY) ONE: Final General Meeting Is on Feb. 9
VENTLER COMPANY: Final General Meeting Is on Feb. 9
VENTORIAN COMPANY: Sets Final Shareholders Meeting on Feb. 9

C H I L E

CA INC: Moody's Comments on Earnings Report & Negative Outlook
SOCIEDAD DE INVERSIONES: S&P Rates US$250MM Sr. Notes at BB-

C O L O M B I A

BANCOLOMBIA: Fitch Affirms Foreign & Local Currency Ratings
UNIFI INC: Appoints William A. Priddy to Board of Directors

C O S T A   R I C A

* COSTA RICA: State Firm Inks US$2.8MM Contract with Intracom

D O M I N I C A N   R E P U B L I C

AES CORP: EdeEste Replaces Damaged Light Posts in Colonial City

E C U A D O R

PHELPS DODGE: Stockholders to Vote on Proposed Buy on March 14

G U A T E M A L A

GOODYEAR TIRE: Extends NASCAR Agreement to Five Years

H O N D U R A S

GREENSTONE RESOURCES: Court Approves Amended Plan of Arrangement

J A M A I C A

AIR JAMAICA: Switching to Boeing 757 Aircraft Later This Year
NATIONAL WATER: Says Manchester Water Tanks Are Safe

M E X I C O

ADVANCED MARKETING: Gets Authority to Employ BSI as Claims Agent
ADVANCED MARKETING: Court Dismisses Class Action Suit Filed
CINEMARK INC: Moody's Confirms Corporate Family Rating at B1
COTT CORP: Posts US$400.1-Million Revenue in Fourth Quarter 2006
COTT CORP: S&P Downgrades Corporate Credit Rating to B+ from BB-

HERBALIFE LTD: Whitney V Offers to Buy Firm for US$38 Per Share
HOME PRODUCTS: Court Approves Second Amended Disclosure Papers
HOME PRODUCTS: Confirmation Hearing Scheduled on March 8
HOME PRODUCTS: Appoints Joseph Gantz as Executive Board Chairman
TRI-NATIONAL DEVELOPMENT: Gets Court Nod to Sell Real Property

N I C A R A G U A

* NICARAGUA: New Ministry Handling Regulator's Bidding Process

P A R A G U A Y

* PARAGUAY: President Names Carmelo Ruggilo as Conatel Head

P E R U

* PERU: Secures US$1.1MM Loan to Unite Microfinance Institutions

P U E R T O   R I C O

CELESTICA INC: Names John Peri as Exec. VP of Global Operations
CELESTICA INC: Fitch Puts Ratings' Outlook to Negative
NEWCOMM: Seeks to Retain Wiley as Special Communications Counsel
SIMMONS BEDDING: S&P Puts CCC+ Rating on US$275MM Unsec. Loan
SUNCOM WIRELESS: Moody's Assigns Caa3 Corporate Family Rating

U R U G U A Y

AMERICAN AIRLINES: Obtaining US$175 Million Client Revenue

* URUGUAY: State Oil firm Lowers Fuel Price Average

V E N E Z U E L A

ARVINMERITOR: Inks Pact to Sell Emissions Tech. to One Equity
ARVINMERITOR INC: S&P Says Tech Biz Sale Won't Affect Ratings
BRASKEM SA: Investmenting in Venezuelan Oil Market
PETROLEOS DE VENEZUELA: Appoints Jose Parada as Division Head
PETROLEOS DE VENEZUELA: Output Cut Sums 195,000 Barrels Per Day

PETROLEOS DE VENEZUELA: To Take Over Orinoco Projects by May 1

* VENEZUELA: National Assembly Approves Enabling Law for Pres.
* VENEZUELA: Pride to Pay US$32.5 Mln. in Back Taxes to Seniat
* VENEZUELA: Nationalization Won't Disturb Trade with Brazil
* VENEZUELA: Prioritizes Electric Power Nationalization Law
* IDB Grants US$550,000 to Harmonize Caribbean Population Census

* KPMG Names Lorie Beers to Special Situations Advisory Group
* Large Companies with Insolvent Balance Sheets


                         - - - - -


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


ACXIOM CORP: Declares US$0.06 Per Share Quarterly Dividend
----------------------------------------------------------
Acxiom Corp. 's board of directors declared a regular quarterly
cash dividend of six cents per share payable on March 5, 2007,
to shareholders of record as of the close of business on
Feb. 12, 2007.

While Acxiom intends to pay regular quarterly dividends for the
foreseeable future, all subsequent dividends will be reviewed
quarterly and declared by the Board at its discretion.

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

                        *    *    *

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

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


FIDUGRARIA SA: Last Day for Claims Verification Is on March 22
--------------------------------------------------------------
Clorinda Paula Donato, the court-appointed trustee for
Fidugraria SA's bankruptcy proceeding, will verify creditors'
proofs of claim until March 22, 2007.

Ms. Donato will present the validated claims in court as
individual reports.  A court in Buenos Aires will determine if
the verified claims are admissible, taking into account the
trustee's opinion and the objections and challenges raised by
Fidugaria and its creditors.

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

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

Ms. Donato is also in charge of administering Fidugaria's assets
under court supervision and will take part in their disposal to
the extent established by law.

The trustee can be reached at:

         Clorinda Paula Donato
         Maipu
         Buenos Aires, Argentina


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

Ms. Mazzoni will present the validated claims in court as
individual reports.   A court in Buenos Aires will determine if
the verified claims are admissible, taking into account the
trustee's opinion and the objections and challenges raised by
Novi-Cont and its creditors.

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

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

Ms. Mazzoni is also in charge of administering Novi-Cont's
assets under court supervision and will take part in their
disposal to the extent established by law.

The trustee can be reached at:

         Marcela Adriana Mazzoni
         Viamonte 1337  
         Buenos Aires, Argentina


SOL Y VALLES: Deadline for Claims Verification Is on March 20
-------------------------------------------------------------
Carlos Daniel Kaen, the court-appointed trustee for Sol y Valles
SA's bankruptcy proceeding, verifies creditors' proofs of claim
until March 20, 2007.

Mr. Kaen will present the validated claims in court as
individual reports on May 7, 2007.  A court in San Fernando del
Valle de Catamarca will determine if the verified claims are
admissible, taking into account the trustee's opinion and the
objections and challenges raised by Trailler and its creditors.

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

A general report that contains an audit of Trailler's accounting
and banking records will follow on June 19, 2007.

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

The debtor can be reached at:

         Sol y Valles S.A.
         Sarmiento 544, San Fernando Del Valle de Catamarca
         Catamarca, Argentina


TRAILLER SA: Trustee Verifies Proofs of Claim Until March 20
------------------------------------------------------------
Carlos Daniel Kaen, the court-appointed trustee for Trailler
SA's bankruptcy proceeding, verifies creditors' proofs of claim
until March 20, 2007.

Mr. Kaen will present the validated claims in court as
individual reports on May 7, 2007.   A court in San Fernando del
Valle de Catamarca will determine if the verified claims are
admissible, taking into account the trustee's opinion and the
objections and challenges raised by Trailler and its creditors.

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

A general report that contains an audit of Trailler's accounting
and banking records will follow on June 19, 2007.

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

The debtor can be reached at:

         Trailler SA
         Sarmiento 545, San Fernando Del Valle de Catamarca
         Catamarca, Argentina


TYSON FOODS: Executives Positive on Firm's Profitability
--------------------------------------------------------
Efforts to return Tyson Foods, Inc. (NYSE:TSN) to profitability
are "paying off," senior executives told shareholders at the
company's annual meeting.

"We've taken steps in the right direction and our business is
getting back on track," said Chairman John Tyson.  "I think
Tyson Team Members are excited about all the work they've been
doing to bring the company back to profitability... their hard
work is paying off."

After losses in three consecutive quarters, Tyson this week
reported US$57 million in net earnings for the first quarter of
fiscal 2006.

"It was the best quarter we've had since the fourth quarter of
fiscal 2005 and it's the result of an overall strengthening in
all our core businesses as well as a focus on controlling
costs," said Wade Miquelon, Tyson's chief financial officer.  
The company currently expects to remain profitable, estimating
diluted earnings per share for fiscal 2007 in the range of
US$0.50 to US$0.80.

Tyson President and CEO Richard L. Bond attributes some of the
company's progress to Team Member efforts to institute a $200
million Cost Management Initiative.  "We have implemented those
measures and they are already showing up on the bottom line," he
said.

Bond also described other measures the company is taking to
remain profitable.  Mr. Bond noted Tyson managers are working in
several cross-functional teams as part of the "Power Performance
through Profitability" initiative, also known as "P3."  This
effort focuses on these areas:

   * Demand creation -- This involves a renewed approach to
     product innovation and consumer insight.  This process is
     also bolstered by the recent opening of the Discovery
     Center, Tyson's new product research and development
     complex.

   * Price optimization -- More than raising prices, this
     initiative entails driving value and value creation
     with customers.

   * Supply chain optimization -- This effort involves such
     things as streamlining operations and the number of stock
     keeping units.

   * Performance-based alignment -- Re-energizing Team Members
     and the culture of the company is extremely important to
     the company's future success.

"P3 will help us execute our long-term strategy to create more
value-added products, improve operational efficiencies and
expand our international business," Mr. Bond said.

During the business portion of the annual meeting, shareholders
elected 10 members to the Tyson Board of Directors, including
five independent directors.  Those elected were:

   -- Dick Bond,
   -- Scott Ford,
   -- Lloyd Hackley,
   -- Jim Kever,
   -- Jo Ann Smith,
   -- Leland Tollett,
   -- Barbara Tyson,
   -- Don Tyson,
   -- John Tyson and
   -- Albert Zapanta.

In other business, an amendment to the Tyson 2000 Stock
Incentive plan was approved, Ernst & Young LLP was ratified as
independent auditor for 2007 and a shareholder proposal by the
People for Ethical Treatment of Animals was defeated.

Based in Springdale, Arkansas, Tyson Foods, Inc. (NYSE:TSN) --
http://www.tysonfoods.com/-- is a processor and marketer of
chicken, beef, and pork.  The company produces a wide variety of
protein-based and prepared food products, which are marketed
under the "Powered by Tyson(TM)" strategy.  It has operations in
Argentina.

On Sept. 25, 2006, Moody's Investors Service took a number of
rating actions in relation to Tyson, including the assignment of
a Ba1 rating to the company's:

   -- US$1 billion senior unsecured bank credit facility; and

   -- US$345 million senior unsecured bank term loan for its
      Lakeside Farms Industries Ltd. subsidiary, under a full
      Tyson Foods, Inc. guarantee.


WENDY'S INT'L: Posts US$2.4 Billion Revenues for Full Year 2006
---------------------------------------------------------------
Wendy's International, Inc., reported financial results for the
full year 2006 and the fourth quarter ended Dec. 31, 2006.

The company completed its spinoff of Tim Hortons in the third
quarter and completed the sale of Baja Fresh Mexican Grill
during the fourth quarter.  During the fourth quarter, the
company also approved the prospective sale of Cafe Express.
Accordingly, the after-tax operating results of Tim Hortons,
Baja Fresh and Cafe Express now appear in the "Discontinued
Operations" line on the income statement.

                 2006 Full-Year Results

   -- Total 2006 revenues were US$2.4 billion, approximately
      flat with 2005.

   -- The company and its franchisees opened a total of 122 new
      Wendy's(R) restaurants during the year.  The openings
      consisted of 25 company-operated restaurants in North
      America and 80 franchised restaurants in North America, as
      well as 16 International franchised restaurants and one
      International company-operated restaurant.

   -- Same-store sales increased 0.8% for U.S. company-owned
      restaurants and 0.6% for U.S. franchised restaurants in
      2006.  The company ended the year with seven consecutive
      months and three consecutive quarters of positive
      same-store sales.

"Our new strategic plan, 'Quality-Driven: Wendy's Recipe for
Success,' enabled us to take important actions that will help us
substantially enhance profitability and create additional
shareholder value," said Chief Executive Officer and President
Kerrii Anderson.  "Our plan focuses on the core elements that
have made the Wendy's brand synonymous with quality and
freshness.

"We ended 2006 with strong momentum, positive same-store sales
and significantly reduced costs," Ms. Anderson said.  "We intend
to build on this momentum and drive even stronger results in
2007 and beyond, as we examine every facet of our business for
improvement."

Adjusted earnings before interest, taxes, depreciation and
amortization from continuing operations was US$220.7 million in
2006, compared with US$260.9 million in 2005.

EBITDA from continuing operations was US$164.0 million in 2006,
compared with US$304.9 million in 2005.

Reported 2006 pretax income from continuing operations was
US$42.5 million compared with US$136.8 million in 2005.  The
company reported after-tax income from continuing operations of
US$37.0 million, or US$0.32 per share, in 2006 compared with
US$82.1 million, or US$0.70 per share, in 2005.

The company reported full-year net income of US$94.3 million and
total diluted earnings per share of US$0.82 in 2006, compared
with US$224.1 million and total diluted earnings per share of
US$1.92, respectively, in 2005.  The 2005 results include Tim
Hortons and other discontinued operations for the full year in
2005, which contributed US$141.9 million to 2005 net income,
compared with a US$57.3 million contribution for 2006.  
Discontinued operations included Tim Hortons only for the first
three quarters of 2006.

The company-operated restaurant EBITDA margins were 8.9% in 2006
compared with 8.6% in 2005, reflecting improvements in cost of
sales.  Company-operated restaurant EBITDA margins consist of
sales from company-operated restaurants minus cost of sales from
company-operated restaurants minus company restaurant operating
costs divided by sales from company-operated restaurants.

The company's full-year 2006 reported results from continuing
operations include the impact of these items:

   * Sales -- US$2.2 billion in 2006, approximately flat
     compared with 2005.
   
     Positive same-store sales at company-operated restaurants
     were mostly offset by fewer U.S. company-operated stores
     open during the year, as the company closed 29
     underperforming company-operated restaurants in 2006.

   * Franchise Revenue -- US$284.7 million in 2006 vs. US$317.1
     million in 2005.  The year-over-year decrease relates
     primarily to:

     -- Approximately US$16.8 million less in rental income in
        2006 compared with a year ago due to the sale of
        Wendy's properties leased to franchisees during 2005
        and early 2006, and

     -- No significant gains on property sales during 2006,
        compared with US$16.3 million in gains on the sale of
        properties leased to franchisees in 2005.

   * Cost of Sales -- US$1.4 billion, or 62.8% of sales, in
     2006 vs. US$1.4 billion, or 63.7% of sales, in 2005.  The
     year-over-year decrease as a percentage of sales is due to
     favorable commodity costs in 2006, primarily beef, and
     effective menu management.

   * Company Restaurant Operating Costs -- US$602.3 million, or
     28.0% of sales, in 2006 vs. US$581.9 million, or 27.2% of
     sales, in 2005.  The year-over-year increase is due
     primarily to higher costs related to performance-based
     incentive compensation of US$4.4 million for field staff in
     2006, as well as higher costs for utilities, property
     management, insurance and supplies.

   * Operating Costs -- US$46.7 million in 2006 compared with
     US$20.4 million in 2005.  The year-over-year increase is
     primarily due to US$25 million incremental advertising
     expense in 2006.

   * General and Administrative expense -- US$237.6 million, or
     9.7% of revenues, in 2006 compared with US$220.9 million,
     or 9.0% of revenues, in 2005.  The year-over-year increase,
     which was partly offset by cost savings realized during
     2006, is due to:

     -- Incremental expense for performance-based incentive
        compensation of US$10.9 million for corporate officers
        and employees in 2006, as the company will pay bonuses
        commensurate with stronger second-half operating results
        for Wendy's core business compared with 2005.

     -- Approximately US$7.4 million in expense for research and
        development primarily related to the breakfast program
        that is currently in approximately 150 U.S. restaurants.

     -- Incremental consulting fees and professional services of
        US$9.2 million during 2006.

   * Other Expense (Income) -- US$37.5 million of expense in
     2006 compared with income of US$34.3 million in 2005.  The
     US$71.8 million year-over-year difference relates primarily
     to:

     -- US$46.4 million in 2005 gains on the sale of real estate
        to third parties that had previously been leased to
        franchisees,

     -- Store closure and sale charges of US$26.6 million in
        2005, compared with US$17.9 million in 2006, and

     -- US$38.9 million in restructuring and severance charges
        during 2006.

   * Interest -- US$35.7 million of interest expense in 2006
     compared with US$43.1 million in 2005 and US$37.9 million
     of interest income in 2006 compared with US$4.0 million in
     2005.  The increase in interest income primarily relates to
     funds received from Tim Hortons after its initial public
     offering in March, while the decrease in interest expense
     relates primarily to the company's repayment of its 6.35%
     Notes in December 2005.

   * Taxes -- An effective tax rate of 12.8% in 2006 compared
     with 40.0% in 2005.  The 2006 rate is lower due primarily
     to the favorable settlement of Federal and various state
     tax examinations, as well as Federal tax credits for
     hiring employees in the Gulf Zone subsequent to Hurricane
     Katrina.

                 2006 Fourth-Quarter Results

   -- Total revenues were US$596.4 million in the fourth
      quarter of 2006, compared with US$602.9 million in the
      fourth quarter of 2005.

   -- The company and its franchisees opened a total of 21 new
      Wendy's restaurants during the quarter.  The openings
      consisted of one company-owned North American restaurant
      and 15 franchised North American restaurants, as well as
      four International franchised restaurants and one
      International company-operated restaurant.

   -- Same-store sales were 3.1% for U.S. company-owned
      restaurants and 2.7% for U.S. franchised restaurants.

Adjusted EBITDA from continuing operations was US$38.4 million
in the fourth quarter of 2006, compared with US$46.0 million in
2005.

EBITDA from continuing operations was US$30.5 million in the
fourth quarter of 2006, compared with US$83.7 million in the
fourth quarter of 2005.

Reported fourth-quarter pretax income from continuing operations
was US$3.1 million compared with US$42.5 million in the fourth
quarter of 2005.  The company reported after-tax income from
continuing operations of US$9.9 million in the fourth quarter of
2006 compared with US$26.1 million in the fourth quarter of
2005.

The company reported 2006 fourth-quarter net income of US$3.0
million and total diluted earnings per share of US$0.03,
compared with US$30.0 million and total diluted earnings per
share of US$0.25, respectively, in the fourth quarter of 2005.  
The 2005 results include the impact of Tim Hortons and other
discontinued operations, which contributed approximately US$3.9
million to fourth-quarter net income, compared with a US$6.9
million loss in the fourth quarter of 2006.  Discontinued
operations did not include Tim Hortons in the fourth quarter of
2006.

The company-operated store EBITDA margins were 8.4% in the
fourth quarter of 2006 compared with 7.7% in the fourth quarter
of 2005, reflecting improvements in cost of sales.

The company's fourth-quarter 2006 reported results from
continuing operations include the impact of these items:

   * Sales -- US$526.7 million in the fourth quarter of
     2006 vs. US$515.6 million in the fourth quarter of 2005.
     The year-over-year increase is due to positive same-store
     sales at company-operated restaurants, partly offset by 22
     fewer average U.S. company stores open during the fourth
     quarter.

   * Franchise Revenue -- US$69.7 million in the fourth quarter
     of 2006, compared with US$87.3 million in the fourth
     quarter of 2005.  The decrease is due primarily to:

     -- A US$4.7 million decline in rental income due to sales
        of U.S. leased properties in 2005 and early 2006, and

     -- A US$14.9 million reduction in gains on sales of
        properties to franchisees.

   * Cost of Sales -- US$331.0 million, or 62.8% of sales, in
     the fourth quarter of 2006 vs. US$328.0 million, or 63.6%
     of sales, in the fourth quarter of 2005.  The year-over-
     year percentage decrease is due to favorable commodity
     costs, primarily beef, and effective menu management.

   * Company Restaurant Operating Costs -- US$149.5 million, or
     28.4% of sales, in the fourth quarter of 2006 vs. US$145.1
     million, or 28.1% of sales, in the fourth quarter of 2005.
     The slight year-over-year increase as a percentage of sales
     is due to rent expense paid by Wendy's to the 50/50 joint
     venture between Wendy's and Tim Hortons.  Due to the      
     September spinoff of Tim Hortons, the joint venture is no
     longer consolidated, and therefore the rent expense is no
     longer eliminated.

   * Operating Costs -- US$4.2 million in the fourth quarter of
     2006 compared with US$5.9 million in the fourth quarter of
     2005.  The year-over-year decrease is primarily due to
     US$1.7 million in rental expense paid by the 50/50 joint
     venture between Wendy's and Tim Hortons.  Due to the
     September spinoff of Tim Hortons, the joint venture is no
     longer consolidated, and therefore this rent expense is no
     longer reflected in operating costs.

   * General and Administrative expense -- US$67.4 million, or
     11.3% of revenues, in the fourth quarter of 2006 compared
     with US$65.4 million, or 10.8% of revenues, in the fourth
     quarter of 2005.  The year-over-year increase, which was
     largely offset by cost savings realized during the quarter,
     relates to:

     -- Incremental expense for performance-based incentive
        compensation of US$5.5 million in the fourth quarter of
        2006, and
  
     -- Approximately US$5.7 million in expense for research and
        development primarily related to the company's breakfast
        expansion.

   * Other Expense (Income) -- US$14.0 million of expense in the
     fourth quarter of 2006 compared with US$24.9 million of
     income in the fourth quarter of 2005.  The US$38.9 million
     year-over-year difference relates primarily to:

     -- A US$46.4 million gain in the fourth quarter of 2005
        from the sale of real estate to third parties that had
        previously been leased to franchisees.

     -- US$7.9 million in restructuring and severance charges
        during the fourth quarter of 2006.

     -- Store closures and sale charges of US$24.9 million in
        the fourth quarter of 2005 compared with US$10.1 million
        in the fourth quarter of 2006.

   * Interest -- US$9.0 million of interest expense in the
     fourth quarter of 2006, compared with US$10.7 million in
     the fourth quarter of 2005 and US$10.2 million of interest
     income in the fourth quarter of 2006 compared with US$1.4
     million in the fourth quarter of 2005.  The increase in
     interest income primarily relates to funds received from
     Tim Hortons after its initial public offering in March.

   * Taxes -- Taxes benefited net income in the fourth quarter
     of 2006, compared with a 38.7% tax expense rate in the
     fourth quarter of 2005.  The year-over-year difference is
     due to the December 2006 reauthorization of the Work
     Opportunity Tax Credit by Congress for the full year 2006,
     which resulted in the entire retroactive annual impact
     being recorded in the fourth quarter.  Also impacting the
     fourth quarter rate was the favorable settlement of certain
     tax examinations.

   * Share Count -- A lower diluted share count (108.8 million
     average shares in the fourth quarter of 2006 vs. 118.4
     million average shares in the fourth quarter of 2005).

The company repurchased 26.2 million shares for more than US$1
billion in 2006.

As part of its plan to return more than US$1 billion in cash to
shareholders, the company repurchased 26.2 million shares during
2006, including 22.4 million shares for US$803.4 million in a
modified Dutch tender offer in the fourth quarter.

"Our share repurchase program has increased liquidity for our
shareholders, and it was consistent with the commitment we made
to shareholders in 2005, which is to use the cash generated from
our strategic initiatives to return value to our shareholders,"
Ms. Anderson said.

The company purchased the shares using existing cash on its
balance sheet.

         Board Approves 116th Consecutive Dividend

The Board of Directors approved a quarterly dividend of 8.5
cents per share, payable on Feb. 27, 2007, to shareholders of
record as of Feb. 12, 2007.  The dividend will be the company's
116th consecutive dividend.

Headquartered in Dublin, Ohio, Wendy's International Inc.
-- http://www.wendysintl.com/-- and its subsidiaries operate,  
develop, and franchise a system of quick service and fast casual
restaurants in the United States, Canada, Mexico, Argentina,
among others.

                        *    *    *

As reported in the Troubled Company Reporter on Oct. 17, 2006,
Moody's Investors Service held its Ba2 Corporate Family Rating
for Wendy's International Inc.

Additionally, Moody's held its Ba2 ratings on the company's
US$200 million 6.25% Senior Unsecured Notes Due 2011 and US$225
million 6.2% Senior Unsecured Notes Due 2014.  Moody's assigned
the debentures an LGD4 rating suggesting noteholders will
experience a 54% loss in the event of default.


ZONDA COLOR: Claims Verification Deadline Is on March 21
--------------------------------------------------------
Adolfo Jorge Santos, the court-appointed trustee for Zonda Color
S.A.'s reorganization proceeding, will verify creditors' proofs
of claim until March 21, 2007.

Mr. Santos will present the validated claims in court as
individual reports on May 8, 2007.  Court No. 4 in Buenos Aires
will determine if the verified claims are admissible, taking
into account the trustee's opinion and the objections and
challenges raised by Zonda Color and its creditors.

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

A general report that contains an audit of Zonda Color's
accounting and banking records will follow on June 21, 2007.

On Feb. 6, 2008, Zonda Color's creditors will vote on a
settlement plan that the company will lay on the table.

Clerk no. 8 assists the court in the proceeding.

The debtor can be reached at:

          Zonda Color S.A.
          Moreno 794
          Buenos Aires, Argentina

The trustee can be reached at:

          Adolfo Jorge Santos
          Junin 55
          Buenos Aires, Argentina




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


BERMUDA BAKERY: Schedules Final General Meeting on March 9
----------------------------------------------------------
Bermuda Bakery (Operations) Ltd.'s final general meeting will be
at 9:30 a.m. on March 9, 2007, or as soon as possible, at the
liquidator's place of business.

Bermuda Bakery'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


IMARX NEWCO: Final General Meeting Is Set for March 9
-----------------------------------------------------
ImaRx Newco Ltd.'s final general meeting will be at 9:30 a.m. on
March 9, 2007, or as soon as possible, at the liquidator's place
of business.

ImaRx Newco'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: Final General Meeting Is Set for March 5
-----------------------------------------------------
SR0 Run-Off Ltd.'s final general meeting will be at 9:30 a.m. on
March 5, 2007, or as soon as possible, at the liquidator's place
of business.

SRO Run-off'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


VIEW ENTERPRISES: Schedules Final General Meeting on Feb. 26
------------------------------------------------------------
View Enterprises Ltd.'s final general meeting will be at 9:00
a.m. on Feb. 26, 2007, or as soon as possible, at:
        
        Messrs. Conyers Dill & Pearman
        Clarendon House, Church Street
        Hamilton, Bermuda

View Enterprises' 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
             c/o Messrs. Conyers Dill & Pearman
             Clarendon House, Church Street
             Hamilton, HM DX, Bermuda,


WMG EUROPEAN: Final General Meeting Is Set for March 2
------------------------------------------------------
WMG European Quantitative Fund Ltd.'s final general meeting will
be at 9:30 a.m. on March 2, 2007, or as soon as possible, at the
liquidator's place of business.

WMG European'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


WMG EUROPEAN (MASTER): Proofs of Claim Must be Filed by Feb. 9
--------------------------------------------------------------
WMG European Quantitative Master 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.

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

The liquidator can be reached at:

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




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


UNIVERSAL COMPRESSION: Unit Declares Prorated Cash Distribution
---------------------------------------------------------------
Universal Compression Partners, L.P., a unit of Universal
Compression Holdings Inc., declared a cash distribution of
US$0.278 per unit payable on Feb. 14, 2007, to unitholders of
record at the close of business on Feb. 7, 2007.

The distribution reflects the pro rata share of the
partnership's minimum quarterly distribution of US$0.35 per unit
and covers the time period from the closing of the partnership's
initial public offering on Oct. 20, 2006, through Dec. 31, 2006.

Universal Compression Partners was recently formed by Universal
Compression Holdings, Inc., to provide natural gas contract
compression services to customers throughout the United States
and was started with an initial fleet comprising approximately
330,000 horsepower, or approximately 17% by available horsepower
of Universal Compression Holdings' domestic contract compression
business at that time.  Universal Compression Holdings owns
approximately 51% of Universal Compression Partners.

Headquartered in Houston, Texas, Universal Compression Holdings,
Inc. -- http://www.universalcompression.com/-- provides natural  
gas compression equipment and services, primarily to the energy
industry in the United States, Argentina, Australia, Bolivia,
Brazil, Canada, China, Colombia, Ecuador, Indonesia, Mexico,
Nigeria, Peru, Russia, Switzerland, Thailand, Tunisia and
Venezuela.  Its primary fabrication facilities are located in
Houston, Texas, and Calgary, Alberta.

                        *    *    *

As reported in the Troubled Company Reporter on Nov. 23, 2006,
Standard & Poor's Ratings Services raises its corporate credit
rating on Universal Compression Holdings Inc. to 'BB' from
'BB-'.  At the same time, assigns its 'BB' rating and '3'
recovery rating to Universal Compression's US$500 million
revolving credit facility.  The Houston, Texas-based oilfield
services company had approximately US$807 million in debt
outstanding following the IPO of its subsidiary Universal
Compression Partners L.P.


* BOLIVIA: 44 contracts with 12 Firms Won't Come Into Effect
------------------------------------------------------------
Bolivian state oil firm Yacimientos Petroliferos Fiscales
Bolivianos said in a statement that the 44 contracts it signed
in October 2006 with 12 oil companies as part of President Evo
Morales' nationalization plan will not come into effect until
adequate technical/legal conditions can be guaranteed.

According to Yacimientos Petroliferos' statement, the company
must sign the contracts with the legal representatives from each
company.  The contracts must also be "notarized".

                        *    *    *

Fitch Ratings assigned these ratings on Bolivia:

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


* BOLIVIA: Vice-President Defends Morales Olivera Appointment
-------------------------------------------------------------
Bolivian Vice-President Alvaro Garcia Linera has responded to
criticisms hurled at the newly appointed chief of Yacimientos
Petroliferos Fiscales Bolivianos, the country's state-owned oil
firm.

Critics said in reports that Manuela Morales Olivera is not
qualified to become the state firm's president.  According to a
2005 YPFB statute, the firm's president should be a professional
in the field and have worked 10 years in leadership positions in
important companies, half of them in the energy sector.  Mr.
Olivera doesn't meet any of the statute's definition.  He was
formerly running a family-printing firm and became President
Morales' chief adviser a year ago.   

"[Morales] is a competent and qualified man with the necessary
knowledge to undertake the reshaping of our state company," the
vice-president was quoted by news bureau ABI as saying.

Vice-President Garcia, according to ABI, cited Mr. Olivera's
successful negotiation of a new gas export price to Argentina
and the renegotiation of 44 operating contracts.

                        *    *    *

Fitch Ratings assigned these ratings on Bolivia:

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




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


ALCATEL-LUCENT: Jyske Bank Analyst Reaffirms Firm's Sell Rating
---------------------------------------------------------------
Robert Jakobsen, an analyst with Jyske Bank, has reaffirmed his
"sell" rating on Alcatel-Lucent, Newratings.com reports.

Mr. Jakobsen said in a research note that Alcatel-Lucent has
reported its preliminary fourth quarter 2006 sales and operating
results significantly short of the consensus.

Mr. Jakobsen told Newratings.com that the deficit may have been
caused by the uncertainty among Alcatel-Lucent's client's
regarding the company's:

   -- future product strategy,
   -- weak sales at Lucent,
   -- general price pressure,
   -- strength in the euro, and
   -- deteriorating conditions in the wireless equipment market.

Alcatel-Lucent's target price decreased from EUR10 to EUR9,
Newratings.com states.

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

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

                        *     *     *

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

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

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

The Rating Outlook for Alcatel-Lucent is Stable.

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

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

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

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

Moody's has withdrawn Lucent's Corporate Family Rating of B1,
assuming that management of the two entities will be fully
integrated over the next several months and all of Lucent's non-
U.S. activities merged with their Alcatel counterparts.  The
outlook for all these ratings is stable.  

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

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


AMERICAN AXLE: Incurs US$222.5 Mil. Net Loss in Full Year 2006
--------------------------------------------------------------
American Axle & Manufacturing Holdings, Inc., reported its
financial results for the fourth quarter and full year 2006.

                   Full Year 2006 Results

   -- Full year sales of US$3.2 billion, reflecting a 9%
      year-over-year decline in AAM production volumes;

   -- Non-GM sales of US$758.5 million, or 24% of total net
      sales;

   -- Special charges of US$181.4 million for a special
      attrition program or SAP accepted by approximately 1,500
      UAW represented associates at AAM's master agreement
      facilities and other related restructuring actions;

   -- Asset impairment charges of US$196.5 million primarily
      associated with plans to idle AAM production capacity in
      the U.S. dedicated to the mid-size light truck product
      range; and

   -- Net loss of US$222.5 million.

AAM's results in the fourth quarter of 2006 were a net loss of
US$188.6 million or US$3.74 per share.  This compares to
earnings of US$4.5 million or US$0.09 per share in the fourth
quarter of 2005.  Full year 2006 results were a net loss of
US$4.42 per share as compared with earnings of US$1.10 per share
in 2005.  AAM's results in 2006 reflect an overall 9% year-over-
year decline in production volumes for the major North American
light truck programs AAM currently supports.  This includes an
estimated 30% decrease in customer production volumes for AAM's
mid-sized light truck product range as compared with 2005.
Production volumes for the major full-size pickup truck and SUV
programs AAM currently supports for General Motors and the
Chrysler Group were relatively unchanged in 2006 as compared
with 2005.

In the fourth quarter of 2006, AAM recorded special charges
relating to a special attrition program accepted by
approximately 1,500 UAW represented associates at AAM's master
agreement facilities.  AAM also recorded a special charge in
2006 for supplemental unemployment benefits estimated to be
payable to UAW associates who are expected to be permanently
idled through the end of the current collective bargaining
agreement that expires in February 2008.  AAM recorded
additional special charges associated with salaried workforce
reductions and other attrition programs offered to its
associates.  In total, these special charges increased AAM's
operating costs in 2006 by US$181.4 million.  AAM estimates that
the future structural cost benefit resulting from the SAP and
other related restructuring actions will exceed US$100 million
annually.

In addition to these special charges, AAM also recorded asset
impairment charges of US$196.5 million in the fourth quarter of
2006 associated with plans to idle a portion of AAM's production
capacity in the U.S. dedicated to its mid-size light truck
product range and other capacity reduction initiatives.

"As the domestic automotive industry continues its rapid and
unprecedented structural transformation, AAM took difficult, but
necessary actions in 2006 to adjust our workforce and production
capacity in the U.S. to meet the realities of the new global
automotive market," said American Axle & Manufacturing Co-
Founder, Chairman of the Board & CEO, Richard E. Dauch.  "In
2006, we made significant progress on AAM's long-term strategic
goals with the expansion of our product portfolio and new
business backlog to support the growing all-wheel-drive
passenger car and crossover vehicle market segment.  We also
launched important new products for General Motors, the Chrysler
Group, SsangYong Motors, Hino, Jatco, Koyo and Harley-Davidson,
while expanding our served markets and global manufacturing
footprint into mainland Europe and Asia."

                        2007 Outlook

   -- AAM expects full year 2007 sales to increase to
      approximately US$3.3 billion;

   -- AAM expects production volumes for the major North
      American light truck programs AAM currently supports to
      be approximately 2% lower as compared with 2006;

   -- AAM expects earnings to range from approximately US$1.25
      to US$1.50 per share in 2007;

   -- AAM expects capital spending to range from US$240 million
      to US$250 million in 2007; and

   -- AAM expects free positive cash flow to exceed US$100
      million in 2007.

AAM's 2007 earnings outlook is based on the assumption that its
customers' production volumes for the major North American light
truck programs it currently supports will be approximately 2%
lower as compared with 2006.  Based on this production
assumption, the anticipated timing of new program launches and
higher content on GM's all-new, award winning full-size SUV and
pickup truck program, AAM expects 2007 sales to increase to
approximately US$3.3 billion.  AAM expects content per vehicle
to increase approximately 5% in 2007, off a base of US$1,225 in
2006.

AAM's 2007 earnings outlook also reflects its plans to incur an
additional US$25 million of additional special charges and other
non-recurring operating costs related to incremental attrition
program activity, the redeployment of machinery and equipment
and other steps to rationalize underutilized capacity.  
Including capital expenditures related to this activity and
payments due to associates pursuant to the SAP and other
attrition programs expensed in 2006, AAM expects to incur a net
use of cash approximating US$100 million in 2007 in support of
these attrition obligations and restructuring activities.

Reflecting the impact of AAM's 2007 earnings outlook, a
reduction in AAM's capital spending to a range of US$240 million
to US$250 million and the continuation of its quarterly cash
dividend program, AAM expects its free positive cash flow to
exceed US$100 million in 2007.  AAM defines free cash flow to be
net cash provided by (or used in) operating activities less
capital expenditures and dividends paid.

AAM expects depreciation and amortization expense to increase
approximately US$20 million in 2007 as compared with 2006.
Although the asset impairments recorded in 2006 reduce the
annual rate of depreciation and amortization expense for certain
of these assets in 2007, the impact of depreciation on new
machinery and equipment almost entirely offsets that reduction.  
AAM also accelerated useful life estimates for various assets as
a result of its asset impairment assessment in 2006.  These
changes in useful life estimates increase the annual rate of
depreciation for these assets beginning in 2007.

Taking all of these factors into account, AAM expects its
earnings to range from US$1.25 to US$1.50 per share in 2007.

"In 2007, we expect to strengthen AAM's position in terms of
sales growth, margin expansion and free cash flow generation,"
said Mr. Dauch.  "AAM's plan to generate more than US$100
million of free cash flow in 2007 will enhance our ability to
invest in the continuing diversification of our product
portfolio, customer base and global manufacturing footprint.  We
will remain focused on these long-term strategic goals in 2007,
while at the same time reducing debt levels, improving our
balance sheet strength and enhancing stockholder value."

American Axle & Manufacturing, headquartered in Detroit,
Michigan, is engaged in the manufacture, design, engineering and
validation of driveline systems and related components and
modules, chassis systems, and metal-formed products for light
truck, SUVs and passenger cars.  The company has manufacturing
locations in the U.S.A., Mexico, the United Kingdom and Brazil.  
The company reported revenues of US$3.4 billion in 2005 and has
approximately 10,900 employees.

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 14, 2006,
Moody's Investors Service confirmed American Axle &
Manufacturing Holdings Inc.'s Corporate Family Rating of Ba3 and
affirmed American Axle & Manufacturing, Inc.'s Speculative Grade
Liquidity rating of SGL-2.


BANCO BRADESCO: Losing Joint Venture with Federal Government
------------------------------------------------------------
Brazilian communications minister Helio Costa told the local
press that the federal government will cancel a contract with
Banco Bradesco for the Banco Postal joint venture with Correios
national post office.

Minister Costa said that President Luiz Inacio Lula da Silva
approved the measure, Business News Americas reports.

The contract with Banco Bradesco runs until 2009, BNamericas
notes.  In 2001, Banco Bradesco bid BRL200 million for the
contract, beating rival Banco Itau and Caixa Economica Federal.  
The firm has since invested BRL250 million in the venture, which
started operating in March 2002.

BNamericas underscores that Postal aims to bring financial
services to areas where no other financial institutions exist.  
Postal has 5.50 million clients, one million of them are
pensioners.  

Minister Costa told BNamericas that Postal has branches in 4,156
municipalities, 70% of them have no other financial services.

BNamericas relates that the government will disclose in the next
90 days for the cancellation of the contract.  It will also
create a committee to decide on how much the government will owe
Banco Bradesco if the contract is revoked.

Minister Costa told BNamericas that Correios could then work
with the US postal service to handle remittances.

Carlos Macedo, an anlyst with Unibanco Corretora, said in a
report, "Losing Postal -- if it indeed earns as much as the
government claims it earns -- will be a significant blow.  
BRL500 million in earnings in Postal represent nearly 10% of our
expected recurring earnings for the bank in 2006."

The government told BNamericas that Postal has yearly earnings
of up to BRL600 million.

Mr. Macedo commented to BNamericas, "Postal's success is mostly
due to Bradesco's efforts."

Banco Bradesco could file an appeal on any decision to the
courts.  It would likely get compensation from the government,
although lesser than the BRL1.50-billion it would have earned
through 2009, BNamericas says, citing Mr. Macedo.

Banco Bradesco chief executive officer Marcio Cypriano reported
in November 2006 that the bank had recovered its initial
investment in Postal and that it would include insurance
products to low-income clients, BNamericas states.

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

                        *     *     *

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

Fitch has also taken these rating actions on Banco Bradesco:

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

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

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

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

   -- Support rating affirmed at '4';

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

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

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

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

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

Moody's said the ratings outlook is stable.


BANCO PINE: S&P Says IPO Won't Affect Ratings
---------------------------------------------
Standard & Poor's Ratings Services said that Banco Pine S.A.'s
(B+/Stable/B) announcement that it has filed with the local
Exchange Commission for an IPO expected to be concluded in the
first half of 2007 will not affect the ratings on the bank.  
Although the family should reduce its current 100% stake in the
bank in the wake of the potential IPO, S&P expects them to be
remain the major shareholder and committed to the operation.  
The IPO should reinforce the bank's capitalization and support
its projected growth; however, the bank is still challenged to
increase its credit operations and maintain good underwriting
procedures and credit risk management.  Although the strong
medium-term growth prospects should consume a great part of the
bank's capitalization, S&P expects capitalization to be
maintained at a level adequate to support the intrinsic risk of
volatility of assets and funding.


BANCO VOTORANTIM: Fitch Affirms BB+ Foreign Currency Rating
-----------------------------------------------------------
Fitch Ratings affirmed Banco Votorantim S.A.'s ratings at
foreign currency Issuer Default 'BB+', Short-term foreign
currency 'B', local currency Issuer Default 'BBB-' and Short-
term local currency 'F3'.  At the same time, Fitch affirmed the
National Long-term and Short-term ratings at 'AA+(bra)' and
'F1+(bra)', respectively.  Fitch also affirmed the bank's
Individual rating at 'C/D' and Support rating at '3'.  The
Outlooks for the Issuer Default and National Long-term ratings
remain Stable.

The ratings reflect the moderate probability of support from
BV's ultimate parent, Votorantim Participacoes S.A (VPAR local
currency Issuer Default 'BBB' and National Long-term 'AAA(bra)')
in case of need.  BV's foreign currency Issuer Default rating is
constrained by Brazil's Country Ceiling, and BV's local currency
Issuer Default rating is above Brazil's sovereign 'BB' rating,
both reflecting Fitch's opinion regarding the strength of VPAR.

VPAR is a privately owned industrial conglomerates and its
Votorantim brand is a well-respected name in Brazil.  Its
ratings reflect VPAR's diverse operating asset and increasing
revenue base, strong market position and conservative financial
profile.  They also take into account the competitive cost
structure of VPAR's metals, cement, and pulp and paper
businesses.  Its core businesses are cyclical and exposed to
price and volume volatility.  However, the diversity of revenues
and cash flows across industry sectors and their relatively low
correlation diminish the overall risk of VPAR's business
portfolio.

The Individual rating reflects BV's business focus, capacity to
manage risks and modest revenue diversification.  Conversely,
the rating also reflects BV's concentration in funding and
government securities, as well as modest deterioration in the
credit portfolio.  Improved profitability and less dependency on
VPAR for funding, coupled with a more stable operational
environment, could favor the Individual rating in the medium
term.  The rating would be negatively affected if BV's declining
profitability versus its peers is not reversed or if the bank's
lending operations run into further problems.

BV is a medium-sized bank with a lean structure.  It is focused
on credit (mostly consumer finance and large corporates) and
treasury, with total assets of BRL55.1 billion, total deposits
of BRL19.3bn and equity of BRL5.5bn as of September 2006.


COMPANHIA SIDERURGICA: Gaining Despite Losing Corus Auction
-----------------------------------------------------------
Companhia Siderurgica Nacional will gain over US$400 million,
despite losing the Corus auction to Tata Steel, the Indian
Express Newspapers reports.

As reported in the Troubled Company Reporter-Latin America on
Jan. 31, 2007, Tata Steel beat Brazilian steelmaker Companhia
Siderurgica Nacional in an auction for control of Anglo-Dutch
Corus Group Plc.  The U.K. Takeover Panel said that Tata's final
bid of 608 pence per share or GBP5.75 billion ousted Companhia
Siderurgica out of the game.  The Brazilian steelmaker finished
with 603 pence per share offer.

Indian Express relates that Companhia Siderurgica will receive
over US$400 million for selling over 34 million shares of Corus
in its possession.  It will also get US$120 million from Corus
on the basis of its offer, having been once ratified by the
latter's board.   The company is entitled to receive an
incentive remuneration from Corus corresponding to 1% of its
final offer of about US$12 billion.

According to Indian Express, Companhia Siderurgica held a 3.8%
stake in Corus, which it had accumulated before making a formal
bid for the latter in November 2006.  Tata Steel is considering
acquiring all outstanding shares of Corus.

Companhia Siderurgica said in a statement that it was entitled
to sell 34,072,613 shares of Corus at the final price Tata Steel
offered, which was about US$402.65.

"Concerning Corus auction, obviously, we would have preferred a
different outcome.  However, we decided not to exceed our pre-
established limits of investment and indebtedness.  Beyond such
limits, we would not be assuring the adequate return rates to
our shareholders.  We congratulate the Tata Group for its
acquisition, and we are confident that the steel industry's
consolidation process is just starting.  Therefore, there will
be new and better growth opportunities for Companhia Siderurgica
in the future, to which we will always be prepared," Benjamin
Steinbruch, Companhia Siderurgica's chairperson and chief
executive officer said in a statement.

                      About Tata Steel

Established in 1907, Tata Steel is Asia's first and India's
largest private sector steel company. Tata Steel is among the
lowest cost producers of steel in the world and one of the few
select steel companies in the world that is EVA+ (Economic Value
Added).

                      About Corus Group

Corus Group plc, fka British Steel, was formed when the UK
privatized its major steelworks in 1988.  It then changed its
name to Corus Group after acquiring most of Dutch rival
Koninklijke Hoogovens.  Corus makes coated and uncoated strip
products, sections and plates, wire rod,  engineering steels,
and semi-finished carbon steel products.  It also manufactures
primary aluminum products. Customers include companies in the
automotive, construction, engineering, and household-product
manufacturing industries.

                About Companhia Siderurgica

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

                        *    *    *

As reported on Nov. 21, 2006, Standard & Poor's Ratings Services
placed its 'BB' corporate credit rating on Brazil-based steel
maker Companhia Siderurgica Nacional on Credit Watch with
negative implications after the company announced its intention
to acquire Corus Group Plc.


COMPANHIA SIDERURGICA: Fitch Affirms Ratings After Losing Bid
-------------------------------------------------------------
Fitch Ratings affirmed and removed the ratings for Companhia
Siderurgica Nacional and related issuances from Rating Watch
Negative:

   * CSN foreign currency and local currency Issuer Default
     Ratings 'BBB-';

   * Unsecured debt obligations issued by CSN Islands entities
     'BBB-';

   * National scale rating and local debenture issuances
     'AA(bra)';

The ratings have a Stable Rating Outlook.

CSN Export Trust

   -- Series 2003-1 'BBB';
   -- Series 2004-1 'BBB';
   -- Series 2005-1 'BBB'.

National Steel S.A. (National Steel)

   -- US$450 million 9.875% perpetual notes: 'BB'

These rating actions reflect the fact that CSN was not
successful with its proposed plan to acquire the Corus Group
Plc.  The Negative Rating Watch reflected the concern that if
CSN had been successful in its attempt to buy Corus, a material
portion of the transaction could have been funded with CSN's
cash and proceeds from debt issuances.

Fitch's 'BB-' rating on Corus, which was placed on Rating Watch
Negative on Oct. 26, 2006, due to a financing structure proposed
by the successful bidder, India-based Tata Steel Limited, that
would burden Corus with much of the acquisition debt.  Tata's
final bid for Corus reached USUS$12 billion.

With annual production capacity of 5.6 million tons of crude
steel and 5.1 million tons of rolled products, CSN ranks as one
of the largest steel producers in Latin America.  The company's
fully integrated steel operations, located in the state of Rio
de Janeiro in Brazil, produce steel slabs and hot- and cold-
rolled coils and sheets for the automobile, construction and
appliance industries, among others.

National Steel is a holding company that is 100% indirectly
controlled by Brazil's Steinbruch family.  National Steel's sole
asset consists of 100% of the redeemable preferred shares of
Acos.  Acos, in turn, is a holding company that owns 100% of
Vicunha. Vicunha is also a holding company that owns 42.74% of
the common shares and controlling interest in Brazilian steel
producer CSN.


HAYES LEMMERZ: Discloses Other Initiatives to Streamline Assets
---------------------------------------------------------------
Hayes Lemmerz International, Inc., disclosed additional
initiatives intended to maximize long-term value for its
shareholders.

Specifically, the company announced:

   -- That it has entered into a definitive agreement for the
      sale of its suspension facilities located in Bristol,
      Indiana and Montague, Michigan; and

   -- The relocation of the company's Automotive Components
      Group headquarters and technical center to the Hayes
      Lemmerz' World Headquarters in Northville, Michigan,
      resulting in the closure of its Ferndale, Michigan
      Technical Center.

Both of these actions were taken as part of the company's
continuing strategy to streamline its business in North America
and to focus its global resources on core businesses.

            Sale of Two Suspension Facilities

The company has signed a definitive agreement with Diversified
Machine, Inc. for the sale of its Montague, Michigan and
Bristol, Indiana suspension operations.  The completion of the
sale is subject to customary closing conditions, including the
approval of the company's lenders.  The company expects to
complete the sale within the next 30 days.

              Consolidation of Headquarters

In order to streamline its Automotive Components Group
operations and to improve efficiencies present in its technical
groups in North America, the company will relocate its
Automotive Components Group headquarters and technical center
from Ferndale, Michigan, to its Northville, Michigan World
Headquarters.  The company plans to sell the Ferndale facility.

Curtis J. Clawson, President, CEO and Chairman of the Board
said, "This step, combined with the restructuring moves in 2006,
further shows Hayes Lemmerz' commitment to being in the right
core markets and focusing on the right products with the right
customers.  We remain confident about the company's future."

"Moving our Automotive Components Group to our Northville World
Headquarters will improve information sharing across groups and
lower our fixed costs," Mr. Clawson said.

Based in Northville, Michigan, Hayes Lemmerz International Inc.
(Nasdaq: HAYZ) -- http://www.hayes-lemmerz.com/-- is a leading  
global supplier of automotive and commercial highway wheels,
brakes, powertrain, suspension, structural and other lightweight
components.  The company has 33 facilities worldwide including
India, Brazil and Germany, among others.

                        *    *    *

Standard & Poor's Ratings Services affirmed, on Sept. 13, 2006,
its 'B-' corporate credit rating on Hayes Lemmerz International
Inc. and removed the rating from CreditWatch with negative
implications, where it was placed Aug. 21, 2006.  S&P said the
outlook is negative.

Standard & Poor's Ratings Services placed on Aug. 24, 2006,
Hayes Lemmerz International Inc.'s B- rating on CreditWatch with
negative implications.


METSO CORP: Paper Unit Inks EUR10-Million Supply Deal to Holmen
---------------------------------------------------------------
Metso Paper, a unit of Metso Oyj, will supply a new, energy-
efficient thermo-mechanical pulping line to Holmen Paper's
Braviken mill in Sweden.  The new line is to be commissioned in
the spring of 2008.  The value of the order is more than EUR10
million.  The order is included in the first quarter order
backlog of 2007.

The investment will lead to improved quality, lower energy
consumption, increased heat recovery and greater pulp
production.  The delivery involves refining and process
equipment, and pulp washing with a press. The new line, which
will have a capacity of 780 tons/day, will replace a line from
1977.

The Braviken mill produces newsprint and telephone directory
paper. Braviken is part of Holmen Paper.

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

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

                        *    *    *

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


NET SERVICOS: Posts BRL1.93 Billion Net Revenue for Year 2006
-------------------------------------------------------------
Net Servicos de Comunicacao S.A. reported 2006 financial
results.

The company recorded a strong operating performance in 2006.  
The Pay TV segment recorded an 18% growth over 2005, closing the
year with 1,812,000 subscribers.  In 2006, net sales totaled
496,700, 50.6% above the 329,900 sales posted in 2005 and churn
rate improved slightly, slowing from 13.8% in 2005 to 13.4% in
2006.  Broadband subscriber base practically doubled for the
fourth consecutive year, ending the period with 727,000
subscribers versus 366,000 subscribers recorded at the end of
2005.  Broadband churn rate was 13.8%, fairly stable in
comparison to 2005 and net sales totaled 435,800. Voice
services, the Net Fone via Embratel, base ended the year with
181,900 subscribers, representing a 25% penetration over
broadband subscribers, while net sales reached 200,200.

Net Revenue reached BRL1,936.0 million in the year, 21.5% above
the BRL1,593.1 million recorded in 2005.

Operating costs and SG&A expenses, together, totaled BRL1,420.6
million versus the BRL1,143.0 million recorded in the previous
year, corresponding to a 24.3% increase.

As a result, in 2006, consolidated EBITDA recorded a 14.5%
growth, from BRL450.1 million in 2005 to BRL515.4 million in
2006.  EBITDA margin in the year dropped from 28% to 27%, as the
company's accelerated growth only took place in the second half
of 2005.  However, EBITDA before selling expenses grew by 25.3%,
from BRL552.6 million in 2005 to BRL692.4 million in 2006,
confirming that the recorded growth is bringing subscribers that
have contributed positively to the solidification of the
company's EBITDA margin.  EBITDA margin before selling expenses
grew from 35% in 2005 to 36% in 2006.

Earnings before equity result and income tax reached BRL198.3
million this year, 60.2% above the BRL123.8 million recorded in
2005.

Headquartered in Sao Paulo, Brazil, NET Servicos de Comunicacao
-- http://Nettv.globo.com/NETServ/br/home/indexNet.jsp?id=1--
is the largest subscriber TV multi-operator in Brazil, as it
operates the NET brand in major cities, including operations in
the 4 largest cities: Sao Paulo, Rio de Janeiro, Belo Horizonte
and Porto Alegre.

NET also offers Broadband InterNet services through its NET
VIRTUA brand name.

                        *    *    *

Moody's America Latina assigned on May 22, 2006, a Baa2.br
Brazilian National Scale Rating and a B1 Global Local Currency
Rating to Net Servicos de Comunicacao S.A.'s BRL650 million
debentures due in 2011 issued in September 2005.  Concurrently,
Moody's Investors Service affirmed Net's B1 global local
currency scale corporate family rating.  Moody's said the
ratings outlook is stable.

                        *    *    *

As reported in the Troubled Company Reporter on Nov. 8, 2006,
Standard & Poor's Rating Services assigned its 'BB-' senior
unsecured debt rating to the proposed perpetual bonds (up to
US$150 million) to be issued by Brazil's largest cable pay-TV
operator, Net Servicos de Comunicacao S.A.  The proceeds will be
used primarily to fund additional investments in the company's
network and digital services.  NET's total debt amounted to
BRL650 million (approximately US$300 million) in September 2006.


NOVELIS INC: Launches New Solution Center to Drive Innovation
-------------------------------------------------------------
Novelis Inc. opened the doors in January to a purpose-built
facility at its Cleveland, Ohio, office dedicated to creativity,
discovery and solutions development.  The Novelis Solution
Center, the first of its kind for the global aluminum rolling
company, emphasizes collaboration and innovation to inspire new
processes and products.

"The facility allows us to bring together cross-collaborative
teams in an environment of energy and imagination, arm them with
tools and techniques, and stimulate a process of design-led,
creative thinking," said Roy Stever, Vice President, Strategic
Marketing for Novelis.  "This approach, the Novelis Solutions
system, will help to set Novelis apart in our industry."

Kevin Greenawalt, President of Novelis North America, said, "The
Solution Center will enable us to work hand-in-hand -- or
creative mind to creative mind -- with our customers and other
partners to solve their challenges and find new solutions.  At
the same time, it will accelerate our delivery of differentiated
products and services."

Novelis expects the Solution Center to aid in the pursuit of a
new generation of high-performance aluminum products, with
particular emphasis on the company's Novelis Fusion aluminum
sheet.  Launched last summer, Novelis Fusion is a breakthrough
technology for the production of multi-layered sheet products
that combine the best qualities of selected aluminum alloys.  
Novelis is currently working with customers to explore and
develop potential new markets.

"With the opening of its Solution Center, Novelis joins a
growing group of companies who are getting out in front of a
movement to put 'design thinking' at the center of management,"
said Fred Collopy, co-editor of Managing as Designing, published
by Stanford University Press, and a department chair at the
Weatherhead School of Management at Case Western Reserve
University.  "Design thinking complements the analytic,
decision-oriented approaches of management by expanding the set
of available alternatives -- often with unexpected benefits.  
This is most impressive when undertaken in a traditional
manufacturing business.  Novelis' efforts to expand how it
thinks about such things as new beverage can concepts, combining
aluminum alloys in unique ways, and expanding the use of
recycled aluminum are promising and exciting."

Although located in Cleveland, the Solution Center will provide
a hub for networking and the sharing of best practices
throughout Novelis' businesses worldwide.

"From the start of our company two years ago, innovation has
been a core driver for Novelis," said Mr. Greenawalt.  "We
strive to deliver superior value to our customers in the form of
high-end products.  Inventions such as our Novelis Fusion
technology and investments such as the Solution Center
demonstrate our commitment to driving innovation throughout our
business and delivering on our promise to our customers."

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

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

                        *    *    *

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


PETROLEO BRASILEIRO: Launching Cubatao Plant Construction
---------------------------------------------------------
Brazilian state-owned oil firm Petroleo Brasileiro said in a
statement that it will start constructing the 160-megawatt
Cubatao gas-fired power generation plant.

Petroleo Brasileiro told Business News Americas that the plant
is situated in Cubatao, Sao Paulo, close to port Santos.  It
will start operating in 2008.

BNamericas relates that Cetesb, Sao Paulo's state environmental
protection agency, awarded a full environmental license for the
project in May 2006.

Cubatao will be a co-generation plant that will generate power
from the burning of natural gas and from steam, 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: Aims for 1.92MM Barrels Per Day Oil Output
---------------------------------------------------------------
Brazilian state oil Petroleo Brasileiro's exploration and
production director Guilherme Estrella told news daily Valor
Economico that the company has targeted 1.92 million barrels per
day of average output for this year.

Petroleo Brasileiro will depend on eight new oil production
projects to reach the goal, Valor Economico notes, citing Mr.
Estrella.

According to Valor Economico, this year's target is 8% greater
than the 1.78 million barrels per day average in 2006.

Valor Economico underscores that new production units coming on
line include:

          -- P-52 semi-submersible platform,

          -- P-54 floating, production, storage and offloading
             vessel (FPSO), and

          -- Piranema FPSO.

The units will have combined capacity of 390,000 barrels per
day, Valor Economico says.

Business News Americas relates that Petroleo Brasileiro raised
on Jan. 19 its overall investment budge for this year to BRL55
billion, from the BRL47.5 billion disclosed earlier.

Petroleo Brasileiro had said in a statement that its exploration
and production budget increased to BRL25.9 billion from BRL23.5
billion.

BNamericas emphasizes that the BRL23.5 billion previously
disclosed for exploration and production included BRL21 billion
in direct Petroleo Brasileiro investments and BRL2.3 billion
through joint ventures.

The budget was increased to accelerate some development projects
including the natural gas initiative under Plangas, Brazil's gas
supply boost program, Petroleo Brasileiro told BNamericas.

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.


TIMKEN CO: Lower Automobile Demand Impacts 4th Quarter Results
--------------------------------------------------------------
Timken Co. is reducing its earnings estimate for the fourth
quarter of 2006.  The reduction is primarily due to lower North
American automotive demand, an increase in the company's
Automotive warranty reserves, the effect of higher Industrial
manufacturing costs and the impact of the sale of Latrobe Steel.

The company now anticipates 2006 fourth-quarter earnings per
diluted share of approximately US0.37 and US2.36 for the full
year.  Excluding the impact of special items, the company
estimates fourth-quarter earnings per diluted share of
approximately US0.30 and US2.48 for the full year.  Special
items include income from Continued Dumping and Subsidy Offset
Act payments, net losses on divestitures and charges related to
restructuring, rationalization and goodwill impairment.

The company had previously provided estimated earnings per share
of US0.47 to US0.57 for the fourth quarter and US2.65 to US2.75
for the full year, excluding the impact of special items.

"We are confident the actions we are taking are positioning the
company for stronger performance," said James W. Griffith,
Timken's president and chief executive officer.  "Specifically,
our efforts to ramp up Industrial capacity, restructure our
Automotive business, divest non-strategic assets and focus our
Steel business on more differentiated products have better
positioned the company to create higher levels of value and
customer service going forward.  As a result of these
initiatives, along with improvements in working capital
management and increased pension funding, we expect to see
substantial improvement in our 2007 financial performance, as
reflected in our earnings outlook."

The revised 2006 earnings estimates include Latrobe Steel
through November 30 in the amount of US$0.20 for the quarter and
US$0.49 for the full year or, excluding special items, US$0.07
for the quarter and US$0.35 for the full year.  The difference
reflects the gain on the sale of Latrobe Steel.

                 About The Timken Company

Headquartered in Canton, Ohio, The Timken Company (NYSE: TKR)
-- http://www.timken.com/-- manufactures highly engineered  
bearings and alloy steels.  It also provides related components
and services such as bearing refurbishment for the aerospace,
medical, industrial, and railroad industries.  The Company has
operations in 27 countries, including Brazil, and employs 27,000
employees.

                        *     *     *

As reported in the Troubled Company Reporter on Oct. 30, 2006,
Moody's Investors Service confirmed The Timken Company's Ba1
Corporate Family Rating and the Ba1 rating on the company's
US$300 Million Unsecured Medium Term Notes Series A due 2028.


TIMKEN CO: To Supply, Repair & Replace Bearings for ELH
-------------------------------------------------------
The Timken Co. recently won an order to supply, repair and
replace tapered bearings for German railway supplier ELH
Eisenbahnlaufwerke Halle GmbH & Co. KG.

The bearings are to be installed in the ELH "Optitrack" bogie,
which is the frame that carries the train's wheels.  The
Optitrack was designed for Freightliner bulk freight cars,
primarily for service in the United Kingdom.

As part of the contract, Timken also will recondition the
bearings in England and handle spare parts procurement.  This
places a wide spectrum of Timken's friction management knowledge
and solutions at ELH's disposal.

Unlike the competition, Timken was able to assure prompt
availability, with two-thirds of the bearings delivered before
the end of 2006.

"Our abilities to deliver value at each stage of a product's
total life cycle make us well-suited to meet ELH's needs,"
explained Timken's Mat Happach, vice president - rail.  "We are
not only a supplier in the traditional sense, but also a service
partner able to offer dependability over an anticipated car
service life of up to 45 years."

The project involves several European parties.  The German ELH
bogies are to be attached to freight cars manufactured in Poland
by the Greenbrier Companies, before the units are sold to
Freightliner, the British operator.

                         About ELH

Founded in 1998, ELH Eisenbahnlaufwerke Halle GmbH & Co. KG
specializes in developing, designing and building customized
bogies.  Its products are installed in freight and passenger
cars, in addition to special track-laying and maintenance
vehicles.

                     About The Timken Co.

Headquartered in Canton, Ohio, The Timken Company (NYSE: TKR)
-- http://www.timken.com/-- manufactures highly engineered
bearings and alloy steels.  It also provides related components
and services such as bearing refurbishment for the aerospace,
medical, industrial, and railroad industries.  The Company has
operations in 27 countries, including Brazil, and employs 27,000
employees.

                        *     *     *

As reported in the Troubled Company Reporter on Oct. 30, 2006,
Moody's Investors Service confirmed The Timken Company's Ba1
Corporate Family Rating and the Ba1 rating on the company's
US$300 Million Unsecured Medium Term Notes Series A due 2028.


TK ALUMINUM: Updates on Liquidity Situation & Asset Sale Deals
--------------------------------------------------------------
TK Aluminum Ltd., the indirect parent of Teksid Aluminum
Luxembourg S.a r.l., S.C.A., disclosed an update on its
liquidity situation, as well as the status of potential asset
sales transactions, including related discussions with relevant
creditor constituents.

The company's previously announced efforts to secure a bridge
loan are continuing, as it is in discussions with existing
lenders to provide such financing, subject to certain
conditions.  In addition to the Nemak transaction, negotiations
for the sale of the assets located in France, Germany and Italy
are continuing.

If the company is unable to secure interim financing or close
the Nemak transaction with the consent of holders of a requisite
amount of the company's EUR240 million of 11-3/8% Senior Notes
due 2011 by the end of February 2007, its ability to fund
operations will be impaired.  In addition, there can be no
assurance that the company will ultimately be successful in
obtaining additional capital resources or that the Nemak
transaction will be consummated within the time period necessary
to provide the company with sufficient liquidity to continue to
fund operations, or at all.  In light of the foregoing, the
company is examining all strategic options, including the
commencement of judicially supervised restructuring proceedings.

         Liquidity Facility and Covenants Compliance

The company disclosed that it is continuing to work with both
its senior and second lien lenders on an interim financing
solution to manage its near term liquidity requirements.  Any
such liquidity facility will require approval by the holders of
the Senior Notes of a modified Nemak transaction as discussed
below and such liquidity facility, as well as consent of the
company's senior and second lien lenders.  There can be no
assurance that such consents or any such facility will be
obtained.  As the company previously advised, borrowings under
the existing senior credit facility will not be permitted
without agreement from its lenders, due to non-compliance with
certain financial covenants for the period ended Dec. 31, 2006.  
In addition, the Senior and, subject to certain limitations,
Second Lien lenders have the ability to exercise all of their
rights thereunder, including requiring the amounts outstanding
under the senior credit facility and second lien credit facility
to become due and payable.  In light of the discussions with its
existing lenders, the company has elected to terminate the
previously announced commitment letter for bridge financing from
another potential funding source.

Since the company's Dec. 13, 2006 announcement, the company's
European operations have used significant amounts of its cash
and estimates that its cash and cash reserves position at
Jan. 31, 2007, is approximately EUR18.0 million, down from
EUR55.6 million at Dec. 31, 2006.  The company estimates that it
had an adjusted EBITDA loss of EUR11.2 million for the quarter
ended Dec. 31, 2006, as compared to an adjusted EBITDA of
EUR19.3 million for the quarter ended Dec. 31, 2005.  The
company has and continues to pay suppliers, factors and vendors
in the ordinary course of business, consistent with past
practices.

                    Divestiture Process

On Nov. 2, 2006, the company entered into a definitive agreement
to sell certain assets to Tenedora Nemak, S.A. de C.V., a
subsidiary of ALFA, S.A.B. de C.V. Under the terms of the
existing agreement, the company is to sell its operations in
North America (except for its lost-foam operations in Alabama,
which will be retained by the company), and its operations and
interests in South America, China and Poland for consideration
of US$495.9 million in cash, together with a synthetic equity
interest in the Nemak business post-closing.  However, in light
of the company's liquidity position, the company is currently
engaged in further discussions with Nemak regarding amendments
to the transaction in order to accommodate an accelerated
closing process.  The company is seeking amendments that would
accelerate the receipt of a portion of the Nemak sale proceeds
by providing for separate closings for the businesses in respect
of which regulatory approvals have been obtained or are expected
to be obtained in the near term, with the balance of the
transaction being completed, in one or more stages, once the
remaining regulatory approvals have been obtained.

In addition, the company is seeking amendments with respect to
other aspects of the existing agreement, including the
allocation of consideration among the various businesses to be
sold and the elimination of a condition requiring the company to
offer at least 95% of par in a tender offer for the company's
Senior Notes.  Completion of the Nemak transaction will require
the cash settlement of certain loans from its French operating
subsidiaries to its Brazilian, Mexican and United States
subsidiaries.

In addition, due to the liquidity situation, the company expects
its outstanding factoring at the initial closing to be in excess
of the maximum limits allowed under the Nemak agreement without
a reduction in the cash purchase price.  The company intends to
elect to reduce the amount of the synthetic equity interest in
lieu of reducing the cash purchase price for all or a portion of
the estimated net debt.  As such, the company would expect to
hold no greater than a synthetic 9% equity interest in the Nemak
business, subject to downward revision for various indemnities,
guarantees and repayment of a US$25 million loan issued in
connection with the transaction.  The synthetic equity interest
is also subject to adjustment for certain dilutive events
changes in capitalization and the occurrence of certain major
transactions.  The value of the synthetic equity interest could
be affected should Nemak's acquisition of Norsk Hydro ASA occur.  
There can be no assurance that a transaction with Nemak on
acceptable terms will be completed.

On Dec. 13, 2006, the company executed a non-binding letter of
intent to sell to one or more affiliates of BAVARIA
Industriekapital AG all of the company's equity interests in its
subsidiaries located in France, Italy and Germany.  The
consummation of the transaction is subject to a number of
conditions, including execution of a definitive agreement,
regulatory approvals, completion of satisfactory due diligence,
and approval by the board of directors of the company of the
definitive agreement and all transactions contemplated thereby.  
The subsidiaries subject to the transaction had an estimated
adjusted EBITDA loss of approximately EUR20.7 million in the
aggregate for the quarter ended Dec. 31, 2006.  The transaction
contemplates a purchase price of EUR1, that Teksid Aluminum
would deliver these companies at closing with at least US$35
million of cash, net of any outstanding indebtedness, on hand
and that Teksid Aluminum would have limited post closing
obligations in respect of the companies sold to Bavaria.  Teksid
Aluminum believes this transaction represents the most
attractive and cost effective means for the disposal of these
businesses due to the significant funding requirements and
expense associated with continued ownership.  There can be no
assurance that a transaction with Bavaria will be completed.

            Revised Tender/Consent Solicitation

On Jan. 15, 2007, due to a variety of factors, the amount of
cash that will be available for distribution to the bondholders
has been adversely affected to a substantial extent relative to
the amount contemplated by the original tender offer.  Factors
contributing to this significant reduction in financial
liquidity include, but are not limited to:

   (i) the deteriorating automotive market and corresponding
       under-performance of operations,

  (ii) unfavorable foreign exchange movements,

(iii) longer lead time to closure of the Nemak transaction, and

  (iv) working capital and other funding requirements of the
       European operations in light of these factors.

The company intends to commence a consent solicitation to, among
other things, seek bondholder consent to allow the Nemak
transaction to occur, but, in light of the time constraints
described above, will not effect a concurrent tender offer.

The company anticipates that the funds available for
distribution will result in a recovery to holders of Senior
Notes at a significant discount to par.  The company intends to
distribute available cash to the bondholders in a prudent and
expeditious manner as possible, taking into account ongoing
operating obligations of, and contingencies related to, the
remaining European operations, particularly in the event a
transaction with Bavaria is not completed.  To such end, the
company will seek to modify the existing indenture to permit the
Nemak transaction and obligate the company to, within a short
timeframe, launch a tender offer for a portion of the bonds at
par using the available net proceeds from certain asset sales as
and when they are completed, subject to the requirements for
maintaining adequate liquidity in the company.  

In addition to funding the company's ongoing operating
obligations, proceeds from the initial sale will be used to fund
the redemption of TK Aluminum's current outstanding debt,
including the senior secured credit facilities (both the first
lien revolver and the second lien facility) and any bridge
facility, required repayments under capitalized leases,
anticipated tax payments as a result of the transaction, and
various other payments, including fees and expenses.

It is presumed that if holders of a significant amount of the
Senior Notes tender their Senior Notes in response to this
initial offer, only a pro rata portion of such notes will be
redeemed.  The company estimates the maximum amount of cash
available for distribution to bondholders (including any unpaid
interest) would be approximately EUR500 to EUR550 per every
EUR1,000 of Senior Notes, assuming completion of the Nemak sale
(other than the sale of our operations in China and Poland) by
Feb. 28, 2007, completion of the sale of our operations in China
and Poland by March 31, 2007, and completion of the Bavaria
transaction by March 31, 2007, and excluding any cash that may
be subsequently realized from the synthetic equity interest and
other remaining assets.  The ultimate amount available for
distribution to bondholders is uncertain as there are a number
of factors that may affect the bondholders' recovery, including
whether and when the first stage of the Nemak transaction and
the Bavaria transaction are completed and the terms thereof, and
whether and when later phases of the Nemak transaction are
completed, as well as the value of Teksid's remaining assets,
including the value of the synthetic equity interest in Nemak
and any related indemnity claims that may be made against such
interest, the cost and duration of any orderly wind-down of the
remaining Teksid entities, and other factors.  

The company does not expect the synthetic equity interest to be
monetized earlier than 30 months from the date of the closing of
the Nemak transaction.  Under the current agreement with Nemak,
the synthetic equity interest represents a payment right that
may be exercised in whole during the 15 business day period
after receipt of certain information from Nemak required to be
delivered commencing on the first fiscal quarter ending after 30
months from the closing of the Nemak transaction.  If not then
exercised, the synthetic equity interest may be exercised in
whole during the 15 business day period after receipt of such
information for each of the following three quarters.  If not
exercised, the synthetic equity interest terminates.

To facilitate the orderly realization of these residual assets
for bondholders over a longer period of time than originally
anticipated, the company will seek to negotiate with bondholders
either an orderly disposition process or the mutually agreeable
restructuring of the remaining claims of holders of the Senior
Notes.  It is not anticipated that current owners of the company
will realize any value through a continuing interest in these
assets following such dispositions or restructuring.

             Interest Payment on Senior Notes

The company will not have sufficient cash to make the EUR14.9
million interest payment due on Jan. 15, 2007, on its
outstanding Senior Notes unless the Nemak transaction is
consummated and proceeds are distributed to bondholders as
described above.

                 Discussions with Bondholders

Teksid and its advisors have commenced and participated in
discussions with the appointed legal and financial advisors of
the adhoc committee of bondholders and provided them access to
the company for the purpose of due diligence on the company's
businesses and finances.

Headquartered in Turin, Italy, TK Aluminum Ltd. --
http://www.teksidaluminum.com/-- manufactures light metal
castings for the automotive industry.  The company's core
products are cylinder heads and blocks, and transmission and
suspension components produced with a wide range of
technologies: semipermanent mold gravity casting, high-pressure
die casting, low pressure, precision sand core and lost foam.

The company also operates in France, Poland, U.S.A., Mexico,
Brazil, Argentina and China.

As reported in the Troubled Company Reporter on Jan. 18, 2007,
Moody's Investors Service downgraded the Corporate Family Rating
of Teksid Aluminum Ltd. aka TK Aluminum to Caa3 from Caa1 and
the senior unsecured rating of Teksid Aluminum Luxembourg Sarl
SCA to Ca from Caa3.  The ratings remain on review with an
uncertain direction; the rating review was initiated on  
Nov. 3, 2006.


USINAS SIDERURGICAS: Won't Export Steel to China
------------------------------------------------
Usinas Siderurgicas de Minas Gerais SA, along with its
subsidiary Cosipa, will not export steel to China, news daily
Valor Economico reports.

According to Valor Economico, Usinas Siderurgicas has not sent
any steel to the Asian country since 2006.

Valor Economico underscores that low prices in China and high
shipping costs put pressure on profit margins.  

The steelmakers exported 414,000 tons to China in 2005, Valor
Economico states.

Headquartered in Minas Gerais, Brazil, Usinas Siderurgicas de
Minas Gerais SA is among the world's 20 largest steel
manufacturing complexes, with a production capacity of
approximately 10 million tons of steel.  Usiminas System
companies produces galvanized and non-coated flat steel products
for the automotive, small and large diameter pipe, civil
construction, hydro-electronic, rerolling, agriculture, and road
machinery industries.  Brazil consumes 80% of its products and
the company's largest export markets are the US and Latin
America.  The company also sells in China and Japan.

                        *    *    *

Standard & Poor's Ratings Services affirmed on June 7, 2006, its
'BB+' long-term corporate credit rating on Brazil-based steel
maker Usinas Siderurgicas de Minas Gerais SA -- Usiminas.  At
the same time, Standard & Poor's assigned its 'BB+' senior
unsecured debt rating to the forthcoming US$200 million Global
MTNs due June 2016 to be issued by Cosipa Commercial Ltd.  S&P
says the outlook on the corporate credit rating is stable.


* BRAZIL: Will Cancel Joint Venture with Banco Bradesco
-------------------------------------------------------
Brazilian communications minister Helio Costa told the local
press that the federal government will cancel a contract with
Banco Bradesco for the Banco Postal joint venture with Correios
national post office.

Minister Costa said that President Luiz Inacio Lula da Silva
approved the measure, Business News Americas reports.

The contract with Banco Bradesco runs until 2009, BNamericas
notes.  In 2001, Banco Bradesco bid BRL200 million for the
contract, beating rival Banco Itau and Caixa Economica Federal.  
The firm has since invested BRL250 million in the venture, which
started operating in March 2002.

BNamericas underscores that Postal's aims to bring financial
services to areas where no other financial institutions exist.  
Postal has 5.50 million clients, one million of them are
pensioners.  

Minister Costa told BNamericas that Postal has branches in 4,156
municipalities, 70% of them have no other financial services.

BNamericas relates that the government will disclose in the next
90 days for the cancellation of the contract.  It will also
create a committee to decide on how much the government will owe
Banco Bradesco if the contract is revoked.

Minister Costa told BNamericas that Correios could then work
with the US postal service to handle remittances.

Carlos Macedo, an anlyst with Unibanco Corretora, said in a
report, "Losing Postal -- if it indeed earns as much as the
government claims it earns -- will be a significant blow.  
BRL500 million in earnings in Postal represent nearly 10% of our
expected recurring earnings for the bank in 2006."

The government told BNamericas that Postal has yearly earnings
of up to BRL600 million.

Mr. Macedo commented to BNamericas, "Postal's success is mostly
due to Bradesco's efforts."

Banco Bradesco could file an appeal on any decision to the
courts.  It would likely get compensation from the government,
although lesser than the BRL1.50-billion it would have earned
through 2009, BNamericas says, citing Mr. Macedo.

Banco Bradesco chief executive officer Marcio Cypriano reported
in November 2006 that the bank had recovered its initial
investment in Postal and that it would include insurance
products to low-income clients, BNamericas states.

                    About Banco Bradesco

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

                        *    *    *

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

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




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


AIR TRANSPORT: Creditors Must File Proofs of Claim by Feb. 15
-------------------------------------------------------------
Air Transport Leasing Inc.'s creditors are required to submit
proofs of claim by Feb. 15, 2007, to the company's liquidator:

          Gerard Hastings
          c/o Maples And Calder, Attorneys-at-law
          P.O. Box 309GT, Ugland House
          South Church Street, George Town
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Feb. 15 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Air Transport's shareholders agreed on Dec. 8, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


ASIA CORPORATE: Last Day to File Proofs of Claim Is on Feb. 16
--------------------------------------------------------------
Asia Corporate Partners Fund Ltd.'s creditors are required to
submit proofs of claim by Feb. 16, 2007, to the company's
liquidators:

          David A.K. Walker
          Lawrence Edwards
          PricewaterhouseCoopers
          Strathvale House, George Town
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Feb. 16 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Asia Corporate's shareholders agreed on Dec. 29, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.

Parties-in-interest may contact:

          Jodi Jones
          P.O. Box 258
          Grand Cayman, Cayman Islands
          Tel: (345) 914 8694
          Fax: (345) 949 4590


ALPHAPLUS CAPITAL: Proofs of Claim Filing Is Until Feb. 16
----------------------------------------------------------
Alphaplus Capital Management, Inc.'s creditors are required to
submit proofs of claim by Feb. 16, 2007, to the company's
liquidator:

          Nigel Stead
          Charles Adams, Ritchie & Duckworth
          P.O Box 709GT, Zephyr House
          Mary Street, George Town
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Feb. 16 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Alphaplus Capital's shareholders agreed on Jan. 11, 2007, for
the company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.

Parties-in-interest may contact:

          Alan de Saram
          Charles Adams, Ritchie & Duckworth
          P.O Box 709GT, Zephyr House
          Mary Street, George Town
          Grand Cayman, Cayman Islands
          Tel: 345 949-4544
          Fax: 345 949-8460


BAREP SYSTEMATIC: Calls Shareholders for Feb. 9 Final Meeting
-------------------------------------------------------------
Barep Systematic Commodity Arbitrage Fund's final shareholders
meeting will be at 9:00 a.m. on Feb. 9, 2007, at the
liquidator's place of business at:

          Q & H Nominees Ltd.
          Third Floor, Harbour Centre
          P.O. Box 1348
          Grand Cayman, Cayman Islands
          
These agenda will be taken during the meeting:

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

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

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

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


BBVA GLOBAL: Deadline for Proofs of Claim Filing Is on Feb. 10
--------------------------------------------------------------
BBVA Global Performance Fund Ltd.'s creditors are required to
submit proofs of claim by Feb. 10, 2007, to the company's
liquidators:

          K.D. Blake
          S.L.C. Whicker
          KPMG
          P.O. Box 493, George Town
          Century Yard, Cricket Square
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Feb. 10 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

BBVA Global's shareholders agreed on Dec. 14, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.

Parties-in-interest may contact:

          Gundega Tamanex
          P.O. Box 493
          Grand Cayman, Cayman Islands
          Tel: 345-914-4309
               345-949-4800
          Fax: 345-949-7164


BENNETT LAWRENCE: Final General Meeting Is Set for Feb. 9
---------------------------------------------------------
Bennett Lawrence Salus Fund (Offshore) Ltd.'s final shareholders
meeting will be at 11:30 a.m. on Feb. 9, 2007, at the company's
registered office.
          
These agenda will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

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


BLUEGRASS ABS: Invites Shareholders for Final Meeting on Feb. 9
---------------------------------------------------------------
Bluegrass ABS CDO I, Ltd.'s final shareholders meeting will be
at 11:30 a.m. on Feb. 9, 2007, at the company's registered
office.
          
These agenda will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

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


CAMARILLA INVESTMENTS: Final General Meeting Is on Feb. 9
---------------------------------------------------------
Camarilla Investments Ltd.'s final shareholders meeting will be
at 9:00 a.m. on Feb. 9, 2007, at the company's registered
office.
   
These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          C.I. Directors Ltd.
          P.O. Box 1110, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 949 7212
          Fax: (345) 949 0993


CASTLERIGG GLOBAL: Calls Shareholders for Feb. 9 Final Meeting
--------------------------------------------------------------
Castlerigg Global Opportunity Fund Ltd.'s final shareholders
meeting will be at 9:30 a.m. on Feb. 9, 2007, at the company's
registered office.
          
These agenda will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

          John Cullinane
          Derrie Boggess
          c/o Walkers SPV Limited, Walker House
          87 Mary Street, P.O. Box 908
          Grand Cayman, Cayman Islands


CASTLERIGG GO: Final Shareholders Meeting Is on Feb. 9
------------------------------------------------------
Castlerigg Go Holdings, Ltd.'s final shareholders meeting will
be at 9:00 a.m. on Feb. 9, 2007, at the company's registered
office.
          
These agenda will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

          John Cullinane
          Derrie Boggess
          c/o Walkers SPV Limited, Walker House
          87 Mary Street, P.O. Box 908
          Grand Cayman, Cayman Islands


CGO LTD: Shareholders to Convene for Final Meeting on Feb. 9
------------------------------------------------------------
CGO, Ltd.'s final shareholders meeting will be at 10:00 a.m. on
Feb. 9, 2007, at the company's registered office.
          
These agenda will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

          John Cullinane
          Derrie Boggess
          c/o Walkers SPV Limited, Walker House
          87 Mary Street, P.O. Box 908
          Grand Cayman, Cayman Islands


FLAMINGO DAZE: Invites Shareholders for Final Meeting on Feb. 9
---------------------------------------------------------------
Flamingo Daze, Ltd.'s final shareholders meeting will be on
Feb. 9, 2007, at the company's registered office.
          
These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          Thomas J. Engibous
          c/o Campbells, 4th Floor, Scotia Centre
          P.O. Box 884, George Town
          Grand Cayman, Cayman Islands


HANSARD HOLDINGS: Final Shareholders Meeting Is on Feb. 9
---------------------------------------------------------
Hansard Holdings' final shareholders meeting will be at 10:00
a.m. on Feb. 9, 2007, at:

          Bessemer Trust Company (Cayman Limited)
          P.O. Box 694, Edward Street, George Town
          Grand Cayman, Cayman Islands
          
These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          Bessemer Trust Company (Cayman) Limited
          P.O. Box 964 GT, Dr. Roy's Drive
          Grand Cayman, Cayman Islands
          Tel: (345) 949-6674
          Fax: (345) 945-2722


INVESTCORP PRINCIPAL: Proofs of Claim Must be Filed by Feb. 12
--------------------------------------------------------------
Investcorp Principal Protected Fund Ltd.'s creditors are
required to submit proofs of claim by Feb. 12, 2007, to the
company's liquidator:

          Westport Services Ltd.
          P.O. Box 1111
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Feb. 12 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Investcorp Principal's shareholders agreed on Jan. 9, 2007, for
the company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.

Parties-in-interest may contact:

          Evania Ebanks
          P.O. Box 1111
          Grand Cayman, Cayman Islands
          Tel: (345)-949-5122
          Fax: (345)-949-7920


INVESTCORP PRINCIPAL: Final General Meeting Is on Feb. 16
---------------------------------------------------------
Investcorp Principal Protected Fund Ltd.'s final shareholders
meeting will be at 12:00 p.m. on Feb. 16, 2007, at the company's
registered office.
          
These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

           Evania Ebanks
           P.O. Box 1111
           Grand Cayman, Cayman Islands
           Tel: (345)-949-5122
           Fax: (345)-949-7920


POST MULTI-STRATEGY: Final Shareholders Meeting Is on Feb. 9
------------------------------------------------------------
Post Multi-Strategy Credit Offshore Fund, Ltd.'s final
shareholders meeting will be at 2:00 p.m. on Feb. 9, 2007, at
the company's registered office.
          
These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

           John Cullinane
           Derrie Boggess
           c/o Walkers SPV Limited, Walker House
           87 Mary Street, P.O. Box 908
           Grand Cayman, Cayman Islands


PTF LTD: Shareholders to Convene for Final Meeting on Feb. 9
------------------------------------------------------------
PTF Ltd.'s final shareholders meeting will be at 9:00 a.m. on
Feb. 9, 2007, at the company's registered office.
          
These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          Richard L. Finlay
          Attn: Krysten Lumsden
          P.O. Box 2681, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 945 3901
          Fax: (345) 945 3902


RECON ARBITRAGE: Shareholders to Gather for Feb. 9 Final Meeting
----------------------------------------------------------------
Recon Arbitrage Master Fund, Ltd.'s final shareholders meeting
will be at 1:00 p.m. on Feb. 9, 2007, at the company's
registered office.
          
These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

           John Cullinane
           Derrie Boggess
           c/o Walkers SPV Limited, Walker House
           87 Mary Street, P.O. Box 908
           Grand Cayman, Cayman Islands


RGI LIMITED: Final Shareholders Meeting Is Set for Feb. 9
---------------------------------------------------------
RGI Limited's final shareholders meeting will be at 10:0 a.m. on
Feb. 9, 2007, at:

          Revlon Consumer Products Corp.
          237 Park Avenue, New York
          New York 10017, USA
          
These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          Edward A. Mammone
          c/o P.O. Box 309
          Grand Cayman, Cayman Islands


UBS (CAY): Shareholders to Gather for Final Meeting on Feb. 9
-------------------------------------------------------------
UBS (Cay) Absolute Return Bond Plus' final shareholders meeting
will be at 10:00 a.m. on Feb. 9, 2007, at the company's
registered office.
          
These agenda will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

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


UBS (CAY) ONE: Final General Meeting Is on Feb. 9
-------------------------------------------------
UBS (Cay) One Year Capital Protected Absolute Return Bond's
final shareholders meeting will be at 10:30 a.m. on
Feb. 9, 2007, at the company's registered office.
          
These agenda will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

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


VENTLER COMPANY: Final General Meeting Is on Feb. 9
---------------------------------------------------
Ventler Company Ltd.'s final shareholders meeting will be at
10:00 a.m. on Feb. 9, 2007, at:

          The Grand Pavilion Commercial Centre
          Grand Cayman, Cayman Islands
          
These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          Value Director Services Ltd.
          c/o Alexandria Bancorp Limited
          P.O. Box 32343
          Grand Cayman, Cayman Islands
          Tel: (345) 945-1111
          Fax: (345) 945-1122


VENTORIAN COMPANY: Sets Final Shareholders Meeting on Feb. 9
------------------------------------------------------------
Ventorian Company Ltd.'s final shareholders meeting will be at
10:00 a.m. on Feb. 9, 2007, at:

          The Grand Pavilion Commercial Centre
          Grand Cayman, Cayman Islands
          
These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          Value Director Services Ltd.
          c/o Alexandria Bancorp Limited
          P.O. Box 32343
          Grand Cayman, Cayman Islands
          Tel: (345) 945-1111
          Fax: (345) 945-1122




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


CA INC: Moody's Comments on Earnings Report & Negative Outlook
--------------------------------------------------------------
Moody's Investors Service comments that it is maintaining the
negative outlook for CA Inc. following the company's fiscal
third quarter 2007 earnings reported last Thursday evening.

"CA's fiscal third quarter results provide evidence of its
bookings and billings growth, reversing previous negative
trends" commented John Moore, VP/Senior Analyst.  "Moody's is
monitoring CA's negative rating outlook pending further evidence
of organic business growth," Mr. Moore added.

The company's Ba1 senior unsecured rating reflects its large
portfolio of mission critical software product offerings and
installed base of a diverse set of creditworthy clients, which
in isolation is similar to cross industry A3 rated peers.  
However, the Ba1 rating also reflects uncertainties surrounding
the effectiveness of its internal financial controls, its
unsettled fulfillment of the terms of the Deferred Prosecution
Agreement, moderate financial leverage (which Moody's believes
could increase with the potential resumption of its share
repurchase program), its modest returns on assets (net cash),
and competitive challenges impacting its core mainframe and Unix
products.

The negative outlook reflects challenges the company has to
revive organic growth, implement effective financial controls,
remediate material weaknesses to its financial reporting, and
contain costs.  While on Thursday's earnings report reversed the
negative operating trends exhibited by CA in prior reports,
Moody's believes that CA's organic sales traction and management
of its financial controls require further proof of execution
through subsequent quarterly reports.

Moody's estimates that the company's LTM December 2006 client
billings grew by about US$170 million or 4%, excluding higher
upfront client payments of about US$120 million received in the
December 2006 quarter.  Moody's notes that this US$170 million
growth was slightly less than the company's LTM December 2006
US$504 million cash acquisition spending.  In addition, LTM
December 2006 total bookings grew by approximately 3%.

Moody's estimates that CA generated approximately US$800 million
LTM December 2006 free cash flow (defined as cash flow from
operating activities less capital expenditures and dividends)
adjusted for leases.  Moody's expects the company's free cash
flow will be negatively affected in the near term by about
US$200 million higher annualized tax payments the company
anticipates to incur, in addition to the potential for a
diminution of upfront client payments from the approximate
US$120 million higher level of upfront payments that the company
received in its December 2006 quarter as well as upfront
payments received in prior periods.  Moody's notes that FY 2006
cash flow from operations benefited from higher than usual
upfront client payments, as indicated by the US$285 million year
over year increase in deferred subscription revenue (collected)
recorded in the liability section of its balance sheet.

Moody's also notes that the company yesterday affirmed its
fiscal 2007 cash flow from operations guidance of between US$900
million and US$1 billion.  The company also expects to continue
to evaluate ongoing business performance and market conditions
before making a decision on the implementation of additional
share repurchases.  In the September 2006 quarter, CA
repurchased approximately US$1 billion of shares.

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.


SOCIEDAD DE INVERSIONES: S&P Rates US$250MM Sr. Notes at BB-
------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB-' long-term
corporate credit rating to holding company, Sociedad de
Inversiones Pampa Calichera.  The outlook is stable.

S&P also assigned a 'BB-' rating to the company's proposed
US$250 million senior secured notes with final maturity in 2022.
Proceeds of the issuance, as well as additional funding from
Pampa's shareholders, will be applied to fund an increase in
Pampa's holdings of Sociedad Quimica y Minera de Chile, S.A.
(BBB+/Stable/--) to 32.00% from 27.94%, and to cancel existing
indebtedness.  The notes will be secured by a pledge of SQM
stock with a market value of at least US$500 million.  The
creditors will also benefit from a debt service reserve account
funded at closing in an amount equivalent to one interest
payment.

"The ratings on Pampa reflect the company's high leverage, and
its expected volatile debt service coverage, which varies
according to SQM's bottom line performance, and our concerns
regarding SQM's ownership structure," said Standard & Poor's
credit analyst Pablo Lutereau.  The ratings benefit from
relatively long tenor of the new debt with no principal
maturities until 2018, a conservative dividend policy limited to
the 30% minimum legal payout, and SQM's volatile, but strong
ability to generate cash flow.

The stable outlook incorporates our expectations that despite
the volatility of the dividends coming from SQM, Pampa will be
able to build up a significant cash position that, together with
the debt service reserve account, will provide some cushion in a
downturn scenario or in the low part of the industry cycle.  The
stable outlook also relies on the value of the Pampa's sole
asset, SQM's shares.  Raising the ratings would require a
significant and consistent improvement in SQM dividend payments
that would have the double effect of decreasing net debt and
improving interest coverage.  The outlook could be revised to
negative, and ratings could be lowered if SQM's dividend
payments become erratic in a way that prevents the company from
building up its cash position, and/or interest coverage becomes
close to 1.10x for at least two consecutive years.  A
significant change in SQM's corporate governance, given the
complexity and peculiarities of the ownership structure that
conditions Pampa's ability to receive dividends, will likely
affect the ratings.




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


BANCOLOMBIA: Fitch Affirms Foreign & Local Currency Ratings
-----------------------------------------------------------
Fitch Ratings affirmed Bancolombia's long-term and short-term
foreign currency Issuer Default Ratings:

   * Foreign currency long-term IDR at 'BB+';
   * Foreign currency short-term rating at 'B';
   * Support rating at '3'.

The Rating Outlook is Stable.

The ratings remain on Rating Watch Negative:

   * Individual rating of 'C';
   * Local currency long-term IDR of 'BBB-';
   * Local currency short-term rating of 'F3'.

These ratings were placed in Rating Watch Negative following
Bancolombia's announcement of the agreement to acquire a
controlling interest in El Salvador's Banco Agricola.

Bancolombia's affirmed ratings reflect its dominant franchise,
sound asset quality, diversified portfolio and revenues, and
strong earnings generation capacity.  The ratings also factor in
the relatively high degree of market risk exposure in its
securities portfolio and the burden that rapid growth caused on
its capital.

On the other hand, the Rating Watch Negative of the Individual
rating and local currency IDRs reflect the deterioration that
the bank's capital ratios may suffer after acquiring Banco
Agricola.  Even though the bank has announced its intention to
increase capital reserves and issue 60 million new shares, the
exact impact that this transaction will have on Bancolombia's
capital structure is not yet clear.  This important strategic
move merits close monitoring and Fitch expects that key details
(proportion of Banco Agricola to be purchased, amount of new
equity, structure and features of planned subordinated debt)
will be clarified within the next few months.

During 2006, Colombia's positive macro-economic environment and
political continuity contributed to restore consumer confidence
and boost investment and economic growth, which in turn
translated into increased banking activity.  Amid a
consolidating wave, banks grew rapidly but suffered from their
large exposures to Government debt amid volatile interest rates.

Bancolombia was no stranger to that trend.  The loan portfolio
grew steadily at an average of 33% across all businesses (year-
on-year at September 2006).  While retail and SME grew above
average, the corporate segment also had a very good performance
that was only clouded by overall slower revenue growth.  Mixed
results in non-interest earnings could not prevent a double-
digit growth (15% YOY at September 2006).  Non-interest expenses
remained fairly stable.  The weakest link turned out to be the
investment portfolio that produced severe losses during the 2006
second quarter after an interest rate spike.  This caused a 33%
decrease in the net income YOY at September 2006, and led to a
reduction of the securities portfolio.  Credit portfolio quality
improved in terms of diversification, performance and risk
rating.  Past due loans decreased in relative terms while higher
loan loss provisions resulted in adequate reserve coverage.  
Funding is now more diversified and the bank enjoys a wide
customer base and relatively lower costs.  Rapid growth and poor
bottom line performance contributed to weaken capital ratios
below its declared target level of 12.5%.

Bancolombia is Colombia's largest bank with over 20% of the
system's loans at September 2006.  It is the result of several
mergers including the merger between Banco Industrial Colombiano
and Banco de Colombia in 1998 and, more recently, of Bancolombia
with Corfinsura and Conavi.  The bank is controlled by a
conglomerate of companies informally known as Grupo Antioqueno
and is widely active in corporate, SME and retail markets.


UNIFI INC: Appoints William A. Priddy to Board of Directors
-----------------------------------------------------------
Unifi Inc.'s Board of Directors elected William A. Priddy, Jr.,
as director of the company.

Mr. Priddy, the Chief Financial Officer and Vice President,
Finance and Administration of RF Micro Devices, Inc., was
elected to a term expiring at the company's 2007 Annual Meeting
of Shareholders, at which time it is expected that he will be
nominated to stand for election by the shareholders of the
company for a one year term.

Mr. Priddy will not immediately be appointed to any committee of
the Board of Directors, but it is expected that he will be named
to the audit committee in October 2007.

There are no transactions to which the company or any of its
subsidiaries is a party and in which Mr. Priddy or any member
of his immediate family had a material interest.

Headquartered in Greensboro, North Carolina, Unifi, Inc. --
http://www.unifi-inc.com/-- is a diversified producer and  
processor of multi-filament polyester and nylon textured yarns
and related raw materials.  The Company adds value to the supply
chain and enhances consumer demand for its products through the
development and introduction of branded yarns that provide
unique performance, comfort and aesthetic advantages. Key Unifi
brands include, but not limited to: Sorbtek(R), A.M.Y.(R),
Mynx(TM) UV, Reflexx(R), MicroVista(R) and Satura(R).  Unifi's
yarns and brands are readily found in home furnishings, apparel,
legwear and sewing thread, as well as industrial, automotive,
military and medical applications.

The company operates in Latin America through its subsidiaries
UNIFI Latin America S.A. and UNIFI do Brasil Ltda, which are
headquartered in Colombia and Brazil, respectively.

                        *     *     *

As reported in the Troubled Company Reporter on Sept. 27, 2006,
Moody's Investors Service confirmed Unifi Inc.'s B3 Corporate
Family Rating and its Caa1 rating on the company's $190 million
senior secured notes due 2014 in connection with the rating
agency's implementation of its new Probability-of-Default and
Loss-Given-Default rating methodology.




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


* COSTA RICA: State Firm Inks US$2.8MM Contract with Intracom
-------------------------------------------------------------
Costa Rican state firm Instituto Costarricense de Electricidad y
de Comunicacion has signed a US$2.8-million contract with
Intracom Telecom, for the provision of Integrated Services
Digital Network terminals as well as the extension of
centralized management system, AFX News Ltd. reports, citing
Intracom.

AFX News relates that Intracom Telecom is part of the Sistronics
Telecommunication Solutions division.  Defence and technology
group Intracom Holdings holds a 49% stake in Intracom Telecom.

Intracom Telecom told AFX News that the contract signed with
Instituto Costarricense is an extension of the US$2-million deal
implemented in 2003.

Instituto Costarricense and Radiografica Costarricense SA, its
subsidiary, are the only providers of fixed-line and mobile
telephony, Internet and data communications in Costa Rica, AFX
News 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
===================================


AES CORP: EdeEste Replaces Damaged Light Posts in Colonial City
---------------------------------------------------------------
AES Corp.'s AES EdeEste has replaced damaged light posts in the
Colonial City in the Dominican Republic, Diario Libre reports.

DR1 Newsletter relates that light posts in poor condition are
common across Santo Domingo.

Diario Libre has praised AES EdeEste, saying that the latter was
the first power firm that replaced the damage posts.

The replacement of the posts coincided with the beginning of the
2005 Atlantic Basin Hurricane Season, DR1 states.

AES Corp. -- http://www.aes.com/-- is a global power company.
The company operates in South America, Europe, Africa, Asia and
the Caribbean countries.  Generating 44,000 megawatts of
electricity through 124 power facilities, the company delivers
electricity through 15 distribution companies.

AES Corp.'s Latin America business group is comprised of
generation plants and electric utilities in Argentina, Brazil,
Chile, Colombia, Dominican Republic, El Salvador, Panama and
Venezuela.  Fuels include biomass, diesel, coal, gas and hydro.
The group also pursues business development activities in the
region.  AES has been in the region since May 1993, when it
acquired the CTSN power plant in Argentina.

                        *    *    *

As reported in the Troubled Company Reporter - Asia Pacific on
Oct. 20, 2006, Moody's Investors Service's downgraded its B1
Corporate Family Rating for AES Corporation in connection with
the implementation of its new Probability-of-Default and Loss-
Given-Default rating methodology.  Additionally, Moody's revised
its probability-of-default ratings and assigned loss-given-
default ratings on the company's loans and bond debt obligations
including the B1 rating on its senior unsecured notes 7.75% due
2014, which was also given an LGD4 loss-given default rating,
suggesting noteholders will experience a 55% loss in the event
of a default.




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


PHELPS DODGE: Stockholders to Vote on Proposed Buy on March 14
--------------------------------------------------------------
Each of Freeport-McMoRan Copper & Gold Inc. and Phelps Dodge
Corp. will hold a special meeting of its stockholders on
March 14, 2007, to vote on the proposed acquisition of Phelps
Dodge by Freeport.  Stockholders who hold shares of Freeport and
Phelps Dodge common stock at the close of business on
Feb. 12, 2007, the record date of each special meeting, will be
entitled to vote on the proposed merger.

On Nov. 19, 2006, Freeport and Phelps Dodge disclosed that they
had entered into a definitive merger agreement whereby Freeport
will acquire Phelps Dodge for approximately US$26 billion in
cash and stock, creating the world's largest publicly traded
copper company.  Each Phelps Dodge shareholder will receive
US$88 per share in cash plus 0.67 common shares of Freeport,
equivalent to a value of US$126.04 based on the closing price of
Freeport on Feb. 1, 2007.  The transaction is subject to
Freeport and Phelps Dodge shareholder approval, regulatory
approvals and customary closing conditions.  The merger
agreement and the merger are described in the joint proxy
statement/prospectus that will be mailed to stockholders of
Freeport and Phelps Dodge in connection with their respective
special meetings.

            About Freeport-Mcmoran Copper & Gold Inc.

Freeport explores for, develops, mines and processes ore
containing copper, gold and silver in Indonesia, and smelts and
refines copper concentrates in Spain and Indonesia.

                     About Phelps Dodge

Phelps Dodge Corp. (NYSE: PD) http://www.phelpsdodge.com/-- is
one of the world's leading producers of copper and molybdenum
and is the largest producer of molybdenum-based chemicals and
continuous-cast copper rod.  The company employs 15,000 people
worldwide.  Phelps Dodge has mining operations in Chile, Peru,
Colombia, Venezuela and Ecuador, among others.

                        *    *    *

In September 2006, Moody's Investors Service confirmed Phelps
Dodge's Preferred Stock 2 Shelf at (P)Ba1.




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


GOODYEAR TIRE: Extends NASCAR Agreement to Five Years
-----------------------------------------------------
The Goodyear Tire & Rubber Co. and NASCAR have signed an
extended agreement for Goodyear to continue as the exclusive
tire used in NASCAR's top three racing series for the next five
years.

The agreement through 2012, naming Goodyear the "Exclusive Tire
Supplier" of NASCAR's NEXTEL Cup Series, the NASCAR Busch Series
and the NASCAR Craftsman Truck Series, was signed here in front
of more than 2,000 attendees at the 2007 Goodyear Dealer
Conference.  Goodyear Chairman and CEO Bob Keegan, Jon Rich,
president of the company's North American Tire business, and
Mike Helton, NASCAR president, delivered the news to Goodyear's
customers.

"This extension of the more than 50-year relationship of two
American icons is one that we are extremely proud to announce,"
said Rich. "Nothing says racing like NASCAR, and Goodyear has
been recognized as the longest-running sponsor of the sport.  We
plan to have our Eagle tires in the winner's circle for another
50 years."

"Our longtime relationship with Goodyear is a testament to the
company's consistent high-quality tire it supplies the race
teams," said Mr. Helton.  "Goodyear has been a vital partner,
which has been essential to NASCAR's side-by-side competition."

Goodyear has had an uninterrupted commitment to NASCAR since
becoming a race tire supplier in the 1950s.  This relationship
has become one of the longest-running supply programs in any
sport.

Over the last 50 years, Goodyear has worked to bring innovation
to its racing products, which, in turn, has helped foster
heightened competition on the track.  Since it first began
supplying tires to NASCAR, Goodyear tires have logged 1,410
NEXTEL Cup (and formerly, Winston Cup) victories, and the number
continues to rise.  As a further extension, Goodyear takes
innovations and cutting-edge technology from the race track, and
applies that technology to tires that consumers use on streets
and highways.

                        About NASCAR

The National Association for Stock Car Auto Racing, Inc. aka
NASCAR, which began in 1948, is the sanctioning body for one of
America's premier sports.  NASCAR is the No. 1 spectator sport-
holding 17 of the top 20 attended sporting events in the U.S.,
the No. 2-rated regular season sport on television with
broadcasts in more than 150 countries, and has 75 million fans
that purchase more than US$2.1 billion in annual licensed
product sales.  

                        About Goodyear

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

                        *    *    *

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




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


GREENSTONE RESOURCES: Court Approves Amended Plan of Arrangement
----------------------------------------------------------------
Shimmerman Penn Title & Associates Inc., in its capacity as
trustee of the bankruptcy estate of Greenstone Resources Ltd.
and not in its personal capacity, disclosed that on
Jan. 30, 2007, the Ontario Superior Court of Justice made an
order in connection with the reorganization of the Company
pursuant to the Companies' Creditors Arrangement Act (Canada)
and Canada Business Corporations Act (Canada).

The Sanction Order, among other things:

   (a) sanctioned and approved the Amended Consolidated Plan of
       Arrangement of Greenstone Resources Ltd. dated
       Jan. 25, 2007;

   (b) approved a number of technical amendments to the Amended
       Plan as specified in the Sanction Order;

   (c) authorized and directed the Trustee to take all actions
       necessary, desirable or appropriate to implement the
       Amended Plan in accordance with its terms and to satisfy
       the conditions to the implementation of the Amended Plan;

   (d) directed the Trustee to file, on the implementation of
       the Amended Plan, Articles of Arrangement in respect of
       the company substantially in the form attached to the
       Amended Plan;

   (e) annulled the company's bankruptcy effective as at the
       implementation of the Amended Plan; and

   (f) conditional upon the implementation of the Amended Plan:

       (i) approved the compromises and the arrangement
           contemplated under the Amended Plan and made them
           binding and effective upon all creditors and other
           persons affected by the Amended Plan;

      (ii) stayed proceedings against the directors and officers
           of New Greenstone and discharged claims against the
           directors and officers of the company;

     (iii) discharged Greenstone and all present directors and
           officers of Greenstone from any and all liability
           with respect to all claims;

      (iv) fixed the number of directors of New Greenstone at
           three and appointed the directors of New Greenstone;

       (v) approved the New Greenstone By-Laws; and

      (vi) deemed each Noteholder to have transferred its Notes
           and associated claims in accordance with the terms of
           the Amended Plan.

The Trustee will file a Certificate with the Court once all of
the conditions to the implementation of the Amended Plan have
been satisfied.

At a meeting of the company's creditors held on Jan. 25, 2007 to
consider the Amended Plan, the required majority of the
company's creditors present and voting at the Meeting accepted
the Amended Plan.

Headquartered in Toronto, Ontario, Greenstone Resources Ltd.
(Nasdaq:GRERF.PK) owns gold operations in Honduras and
Nicaragua.




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


AIR JAMAICA: Switching to Boeing 757 Aircraft Later This Year
-------------------------------------------------------------
Air Jamaica will change its Airbus fleet to Boeing 757s later in
2007, Travel Weekly reports.

As reported in the Troubled Company Reporter-Latin America on
Feb. 2, 2007, Jamaica's Cabinet approved Air Jamaica's latest
business plan.  The new strategies discussed in the plan are
aimed at:

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

The first routes to get 757 service will probably be the routes
from New York to Montego Bay and Kingston, and from Toronto to
Kingston, Paul Pennicook, Air Jamaica's senior vice president of
marketing and sales, told Travel Weekly.

Boeing 757 is more appropriate for Air Jamaica, as it carries
188 passengers and has more room for baggage.  It will also have
bigger number of load and fly a longer route more efficiently,
Travel Weekly says, citing Mr. Pennicook.

Mr. Pennicook said that the conversion of the fleet to Boeing
757 will come on a staggered basis over an 18 to 24-month
period, Travel Weekly notes.

Mr. Pennicook told Travel Weekly that the initial stages of the
business plan's implementation will incur costs.  He said,
"Somewhere in the area of US$125 million over a three- to five-
year period, but in the long run we will reduce our debt and our
costs."

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

                        *    *    *

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


NATIONAL WATER: Says Manchester Water Tanks Are Safe
----------------------------------------------------
Jamaica's National Water Commission assured The Jamaica Observer
that the increased levels of bacteria in the water catchment
tanks in Manchester don't affect the quality of the water supply
system.

A catchment is an area set aside for collecting water running
off the surface of the land.  It provides the source of water
for the reservoirs that collect drinking water.  

The Observer relates that the health department was concerned
that 98% of the parish's 61 water catchment tanks posed major
health risk from increased levels of bacteria.

Wayne Mitchell, deputy superintendent of road and works in the
Manchester Parish Council, explained to The Observer that the
chlorine used to treat water brought the bacteria in the
catchment tanks.  

Mr. Mitchell told The Observer that chlorine weakens quickly
under direct sunlight.  He said, "When we do the [chlorine
residual test] in the morning, by the afternoon the following
day, basically the results are pretty low."

Reports say that of the 135 chlorine samples taken in November
2006, about 36 indicated an absence of chlorine in the catchment
tanks.  Of 123 samples taken the following month, 52 showed an
absence of chlorine.

According The Observer, a bacteriological analysis of water in
the parish reported that 12 out of the 61 samples taken in
November 2006 indicated unsafe levels of bacteria, while 49 were
safe.  In December 2006, 17 out of the 64 samples showed unsafe
levels of bacteria.

However, National Water corporate public relations manager
Charles Buchanan denied that National Water operates any of the
catchment tank systems in Manchester.

Mr. Buchanan told The Observer that the firm continues to strive
for the highest standards and implements measures to effectively
treat, test and deliver potable water to its clients that meets
the standard of the Ministry of Health and World Health
Organization.  

"Everyday the National Water harnesses, treats and distributes
about 190 million gallons of water to customers islandwide.  The
rigorous water quality process employed by the National Water
ensures that we are able to correct problems at the earliest.  
In a view of the undue alarm that may be created in the minds of
our customers, the National Water wishes to assure its
customers, especially in Manchester that the water supplied by
us remains safe and is fit for consumption," Mr. Buchanan said
in a statement.

                        *    *    *

As reported in the Troubled Company Reporter on Feb. 7, 2006,
the National Water Commission of Jamaica had been criticized for
failing to act promptly in cutting its losses.  For the fiscal
years 2002 and 2003, the water commission accumulated a net loss
of US$2.11 billion.  The deficit fell to US$1.86 billion the
following year, and to US$670 million in 2004 and 2005.




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


ADVANCED MARKETING: Gets Authority to Employ BSI as Claims Agent
----------------------------------------------------------------
Advanced Marketing Services Inc. and its debtor-affiliates
obtained permission from the United States Bankruptcy Court for
the District of Delaware to employ Bankruptcy Services LLC as
claims and noticing agent in their Chapter 11 cases to, among
other things:

    (1) maintain, process and docket claims filed in their
        bankruptcy cases;

    (2) transmit notices to appropriate parties as required by
        the Bankruptcy Code, the Federal Rules of Bankruptcy
        Procedure and the Local Rules of the District of
        Delaware;

    (3) assist the Debtors within the dissemination of
        solicitation materials relating to a plan of
        reorganization; and

    (4) assist the Debtors with the preparation of their
        schedules and statements.

Furthermore, BSI will assist the Debtors with:

    (1) the preparation of amendments to the master creditor
        lists;

    (2) administrative tasks relating to the reconciliation and
        resolution of claims; and

    (3) the preparation, mailing and tabulation of ballots for
        the purpose of voting to accept or reject a
        Reorganization Plan or Reorganization Plans.

BSI will not perform any services involving the exercise of
professional judgment without further Court ruling, Mark D.
Collins, Esq., at Richards, Layton & Finger, P.A., in
Wilmington, Delaware, notes.

The Debtors submit that the employment of BSI will promote the
economical and efficient administration of their estates because
the Debtors will be able to avoid duplication in claims
administration, and in providing notices to their creditors.  In
addition, the Court and the Clerk of Court will be relieved from
the heavy administrative burden and other burdens due to the
large number of creditors and other parties-in-interest involved
in the Debtors' Chapter 11 cases.

According to Mr. Collins, BSI is a firm that specializes in
claims processing, noticing and other administrative tasks in
Chapter 11 cases.  BSI has (a) substantial experience in the
matters on which it is to be engaged, and (b) acted as official
claims agent in several cases in the U.S. Bankruptcy Court for
the District of Delaware.

Daniel C. McElhinney, BSI Vice President of Client Services,
assures the Court that in its capacity as the Claims and
Noticing Agent in the Debtors' Chapter 11 cases, BSI:

    (a) will not consider itself employed by the U.S. Government
        and will not seek any compensation from the U.S.
        Government;

    (b) waives any rights to receive compensation from the U.S.
        Government;

    (c) will not be an agent of the U.S. Government and will not
        act on behalf of the U.S. Government; and

    (d) will not employ any past or present employees of the
        Debtors in connection with its work as the Claims and
        Noticing Agent.

Mr. Collins relates that BSI will bill the Debtors monthly, and
all invoices will be due and payable upon receipt at these
rates:

        Consulting Services                       Hourly Rate
        -------------------                       -----------
      Senior Bankruptcy Consultant              US$225 - US$295
      Bankruptcy Consultant                     US$185 - US$225
      IT Programming Consultant                 US$140 - US$190
      Cash Managers-Document and Data Review    US$125 - US$175
      Clerical                                   US$40 - US$60

BSI reserves the right to reasonably increase its prices,
charges and rates annually on January 2nd of each year.  
However, if the increases exceed 10%, BSI will be required to
give 60 days' prior written notice to the Debtors.

                  About Advanced Marketing

Based in San Diego, California, Advanced Marketing Services,
Inc. -- http://www.advmkt.com/-- provides customized  
merchandising, wholesaling, distribution and publishing
services, currently primarily to the book industry.  The company
has operations in the U.S., Mexico, the United Kingdom and
Australia and employs approximately 1,200 people Worldwide.

The company and its two affiliates, Publishers Group
Incorporated and Publishers Group West Incorporated filed for
chapter 11 protection on Dec. 29, 2006 (Bankr. D. Del. Case Nos.
06-11480 through 06-11482).  Suzzanne S. Uhland, Esq., Austin K.
Barron, Esq., Alexandra B. Feldman, Esq., O'Melveny & Myers,
LLP, represent the Debtors as Lead Counsel.  Chun I. Jang, Esq.,
Mark D. Collins, Esq., and Paul Noble Heath, Esq., at Richards,
Layton & Finger, P.A., represent the Debtors as Local Counsel.  
When the Debtors filed for protection from their creditors, they
listed estimated assets and debts of more than $100 million.  
The Debtors' exclusive period to file a chapter 11 plan expires
on Apr. 28, 2007. (Advanced Marketing Bankruptcy News, Issue No.
3; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


ADVANCED MARKETING: Court Dismisses Class Action Suit Filed
-----------------------------------------------------------
The U.S. District Court for the Southern District of California
dismissed a class action filed on behalf of purchasers of
Advance Marketing common stock from Jan. 16, 1999, to
Jan. 13, 2004, inclusive.

The lawsuit arose out of Advanced Marketing Services'
announcement on Jan. 14, 2004, that it would restate its
previously filed financial statements for the prior five fiscal
years.  The planned restatement resulted from the company's
ongoing review of its cooperative advertising practices and
related accounting, and relates primarily to the timing and
quantification of recognition of revenue and reversal of accrued
liabilities.

Following the announcement of the restatement, the price of
AMS's stock fell 15.2% from US$11.97 to US$10.15 per share.  
Afterwards, Debtor and certain of its officers and directors
were named as defendants in the federal securities class actions
in the U.S. District Court for the Southern District of
California in:

      -- "Eastside Investors, LLP v. Advanced Marketing
         Services, Inc., et al., Case No. 04-CV-00121 JM (AJB);"

      -- "Bowen v. Advanced Marketing Services, Inc., et al.,
         Case No. 04-CV-00139 H (JMA);" and

      -- "Anderson v. Advanced Marketing Services, Inc., et al.,
         Case No. 04-CV-00324 WQH (AJB)."

The lawsuits alleged that Advanced Marketing and the individual
defendants either knowingly or recklessly made misstatements
concerning the company's reported financial results to
artificially inflate the price of AMS common stock.

On Feb. 24, 2004, the California Court consolidated the
federal securities actions into a single case.  On May 4, 2004,
the Court appointed Detroit P&F, a public pension fund organized
for the benefit of current and retired police and fire personnel
from the city of Detroit, as lead plaintiff, and approved
Detroit P&F's selection of Bernstein Litowitz as lead counsel.

In August 2005, the parties participated in a settlement
mediation session with the assistance of retired California
Court of Appeal Justice Charles S. Vogel.  

Following mediation session, counsel for the parties continued
to discuss settlement.  In February 2006, the parties reached
agreement on the terms of settlement and executed a Memorandum
of Understanding.

On Oct. 16, 2006, the Court entered the Order of Final Judgment
and Dismissal of the Action with Prejudice and granted
final approval of the Settlement, the Plan of Allocation of
Settlement Proceeds and the Request for Attorneys' Fees and
Reimbursement of Expenses.

                  About Advanced Marketing

Based in San Diego, California, Advanced Marketing Services,
Inc. -- http://www.advmkt.com/-- provides customized  
merchandising, wholesaling, distribution and publishing
services, currently primarily to the book industry.  The company
has operations in the U.S., Mexico, the United Kingdom and
Australia and employs approximately 1,200 people Worldwide.

The company and its two affiliates, Publishers Group
Incorporated and Publishers Group West Incorporated filed for
chapter 11 protection on Dec. 29, 2006 (Bankr. D. Del. Case Nos.
06-11480 through 06-11482).  Suzzanne S. Uhland, Esq., Austin K.
Barron, Esq., Alexandra B. Feldman, Esq., O'Melveny & Myers,
LLP, represent the Debtors as Lead Counsel.  Chun I. Jang, Esq.,
Mark D. Collins, Esq., and Paul Noble Heath, Esq., at Richards,
Layton & Finger, P.A., represent the Debtors as Local Counsel.  
When the Debtors filed for protection from their creditors, they
listed estimated assets and debts of more than $100 million.  
The Debtors' exclusive period to file a chapter 11 plan expires
on Apr. 28, 2007. (Advanced Marketing Bankruptcy News, Issue No.
4; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


CINEMARK INC: Moody's Confirms Corporate Family Rating at B1
------------------------------------------------------------
Moody's Investors Service changed the outlook for Cinemark, Inc.
to positive from stable.  The outlook change reflects the
potential for additional debt reduction with proceeds from the
proposed initial public offering of Cinemark Holdings, Inc.,
which, when combined with possible debt reduction from the
proposed initial public offering of National CineMedia, Inc.
could reduce leverage to at or slightly below 6.0 times debt-to-
EBITDA (as per Moody's standard adjustments, which include
capitalization of operating leases).  Moody's also affirmed
Cinemark's B1 corporate family rating.

Moody's would consider an upgrade when the company demonstrates
a clear trajectory towards leverage in the mid 5 times debt-to-
EBITDA range (as per Moody's standard adjustments, which include
operating leases), which could be achieved through either debt
repayment or a combination of debt repayment and organic growth.  
Additionally, a Ba3 rating would require cash flow from
operations less capital expenditures of around 5% of debt.

Moody's will evaluate the likely use of proceeds from both the
initial public offering of Cinemark Holdings Inc. and the
National CineMedia Inc. transaction when further details are
available, and will assess the potential impact on free cash
flow of Cinemark's likely dividend strategy as a public company.  
If leverage does not decline below the 6.0 times level following
the two public offerings, the outlook will likely be returned to
stable.

Cinemark, Inc.

   -- Outlook, Changed To Positive From Stable

Cinemark USA, Inc.

   -- Outlook, Changed To Positive From Stable

The B1 corporate family rating for Cinemark reflects currently
high leverage (approximately 6.5 times debt-EBITDA, as per
Moody's standard adjustments and pro forma for the acquisition
of Century Theatres, Inc.), sensitivity to product from movie
studios, and a weak industry growth profile, offset by
expectations for continued positive free cash flow and the
advantages of scale and geographic diversity.  Modest upside
cash flow benefits from increased advertising also support the
rating.

Cinemark Inc. -- http://www.cinemark.com/-- operates 202
theatres and 2,469 screens in 34 states in the United States and
operates 112 theatres and 932 screens internationally in 13
countries, mainly Mexico, South and Central America.  Cinemark
was founded in 1987 by its Chief Executive Officer and Chairman
of the Board, Lee Roy Mitchell.  In 2004 a controlling interest
in Cinemark was sold to Madison Dearborn Capital Partners.
Cinemark was among the first theatre exhibitors to offer
advanced real-time Internet ticketing at its own website.


COTT CORP: Posts US$400.1-Million Revenue in Fourth Quarter 2006
----------------------------------------------------------------
Cott Corp. reported results for the fourth quarter and full year
ended Dec. 30, 2006.

Fourth quarter volume was 267.2 million eight-ounce equivalent
cases, down 2% compared with the fourth quarter of 2005,
primarily due to carbonated soft drink softness in North America
and continued rationalization of non-performing business and
SKUs.  Revenue increased 0.7% in the quarter to US$400.1
million, compared with US$397.2 million in the fourth quarter of
the prior fiscal year.  Excluding the impact of foreign
exchange, revenue declined 1.4% compared with the same period in
the prior year.

Fourth quarter gross margin of 7.5% was impacted by US$12.2
million of accelerated depreciation and amortization relating to
the closure of two U.S. manufacturing plants and Cott's U.K.
resin supplier going into receivership, which resulted in
inventory and other losses of US$9 million.  These two items
totaled US$21.2 million in pre-tax costs, or 5.3% of sales.  On
an after-tax basis, the impact of these items was US$13.8
million.  The fourth quarter gross margin in 2005 was 11.9%.

Net loss for the quarter was US$29.6 million compared with a
loss of US$6.9 million in the fourth quarter of the prior year.  
This net loss reflects the charges arising from the supplier
receivership, plant closures, share-based compensation and
executive transition, amounting to US$50.8 million before tax or
US$32.6 million after taxes.  Plant closure charges include
accelerated depreciation and amortization, restructuring, asset
impairment and inventory write-downs.

"Reported earnings were significantly impacted by the planned
plant closures, and by the receivership of our U.K. resin
supplier which was unexpected and highly disappointing.
Excluding these costs, our earnings and fundamental performance
continue to improve," said Cott Chief Executive Officer Brent
Willis.  "The improvement in our business fundamentals in the
fourth quarter of 2006, particularly in cost reduction and core
customer partnerships, is encouraging.  We have made good
progress in improving day-to-day operations, discipline and
focus but we still have significant opportunities to improve
execution."

           Fourth Quarter Business Unit Highlights

North American revenue declined 3.8% compared with the fourth
quarter of 2005.  The decline was due to lower volumes, the
elimination of unprofitable products and lower revenues as
customers were converted from delivered to customer pick-up.  
Excluding appreciation in the Canadian dollar, North American
revenue declined 4.3%.

The International business unit posted strong quarterly revenue
gains of 15.6% from base business growth. Excluding the impact
of foreign exchange, International revenue was up 7.4% over the
prior year fourth quarter.

                Other Financial Information

Selling, general and administrative expenses increased in the
quarter to US$46.7 million, as compared with US$32 million in
the fourth quarter of 2005, mainly due to stock-based
compensation expense, executive transition costs and incentive
expense.  Cott began recording expenses for stock-based
compensation in 2006 under the provisions of FAS 123(R).

Restructuring charges, asset impairments and other charges of
US$29.6 million on a pre-tax basis, or US$18.8 million after
taxes, were recorded in the quarter.  This includes charges
related to the previously announced closure of the company's
plants in Elizabethtown and Wyomissing.  This amount is part of
the previously announced charges of US$115-125 million.  The
fourth quarter operating loss was US$40.3 million compared with
operating income of US$1.8 million in the fourth quarter of
2005.

Cott is in the process of assessing the effectiveness of its
internal controls over financial reporting in the areas of
procurement, segregation of duties and inventory.  It expects to
report material weaknesses in these areas in the company's
annual report on Form 10-K, which is expected to be filed at the
end of February 2007.  Cott does not expect these weaknesses to
result in any changes to the company's financial statements for
2006.

                      Full-Year Results

2006 full-year volume was 1,233.5 million eight-ounce equivalent
cases, up 2.7% from 1,201.4 million in 2005.  The volume growth
was driven by the International business unit, including the
contribution from Macaw. 2006 revenues increased 0.9% to
US$1,771.8 million, compared with US$1,755.3 million in the
prior fiscal year.  Excluding the acquisition of Macaw, revenue
declined 3.6%.  When the impact of foreign exchange is also
excluded, revenue declined 4.8% in 2006 compared with 2005.

Full-year gross margin was 12.2% compared with 14.2% in 2005.
Selling, general and administrative expenses for 2006 were
US$176.1 million, a 27.1% increase over 2005 primarily due to
share-based compensation expense which the company began
recording in 2006, executive transition costs and increased
incentive expense.

Net loss for the year was US$17.5 million or US$0.24 per diluted
share, compared with income of US$24.6 million or US$0.34 per
diluted share in 2005.  This net loss reflects the charges from
plant closures, share-based compensation, executive transition
charges and the inventory loss triggered by the receivership of
Cott's U.K. resin supplier.  These charges totaled US$80.8
million before tax or US$54.5 million after taxes for the year.

On a business unit basis, full-year North American revenue was
down 6% while International revenue grew 32% in 2006 when
compared with 2005.  Excluding the Macaw acquisition,
International revenue grew 7.4% in the year.

               Progress in Key Strategic Areas

Cott's strategy for creating and sustaining long-term growth and
profitability is based on three key areas of focus:

   1. Lowest cost production
   2. Retailers' best partner
   3. Innovation pipeline

Cott reported progress in each of these areas:

   -- The company's plants in Wyomissing and Elizabethtown shut
      down operations ahead of schedule and with no major
      disruptions.  The closures are expected to result in US$8
      million of cost-savings in 2007 and US$10 million
      annually thereafter.

   -- The Sub-Zero Based Budgeting process was fully adopted for
      the 2007 budget.  The company anticipates realizing more
      than US$10 million in savings in 2007 as a result of the
      SZBB process.

   -- Combining all cost reduction programs, including those
      items above and previously announced in the second and
      third quarters of 2006, Cott expects to deliver a total of
      US$35 million in cost reductions for 2007, and spend back
      US$15 million of that to support growth initiatives.

   -- In core business execution, Cott has aligned annual
      displays, features, expanded shelf space, and consumer
      promotion calendars with many of its major customers.  
      These include in-store sampling, product tie-ins,
      dedicated promotional displays and flyer promotions taking
      place throughout 2007.

   -- In new products, the company finalized agreements to
      supply sports drinks to one of its top five customers
      beginning in the second quarter of 2007.  Cott continues
      to roll out its portfolio of sports drinks, ready-to-drink
      teas, energy drinks, and flavored and enhanced waters, as
      part of its expansion of new non-CSD products throughout
      North America.

   -- Internationally, Cott continued its strategic expansion.
      In addition to new supply arrangements in Europe with a
      top Five global retailer, Cott also recently aligned with
      a top U.K. retailer to supply a range of high quality
      beverages to its portfolio.  The company also progressed
      its relationships with business partners in China.  Cott
      expects to launch both retailer brands and RC Cola
      beginning in the second quarter of 2007.

                      Summary & Outlook

"In the second half of 2006, we made a number of changes
necessary to rebuild our business foundation which we expect
will deliver solid results in 2007.  We took actions to remove
millions of dollars in costs from the business, eliminated
hundreds of positions, restructured and refocused the
organization, and re-oriented top-line drivers to renew volume
and revenue growth," added Mr. Willis.

"We said we would take significant costs out of the business and
we have -- but there is a lot more that we can and will do.
We've made good early progress in new channels, new products,
and new customers, especially internationally.  These new
initiatives and expansions take time to contribute, but we
expect them to positively impact the business in 2007.  We said
top-line would take at least until the beginning of the year to
turn-around and we are now seeing the initial signs of
improvement and a fast start to the new year."

Cott announced its business model for growth with anticipated
financial targets of:

   -- Long-term annual organic volume growth of 2-4%;

   -- Long-term annual organic revenue growth of 3-5%;

   -- Gross margin improvement of 50 - 100 basis points
      year-on-year, exceeding 16% in 2009;

   -- Long-term annual operating income growth of 12-15%; and

   -- Annual capital expenditures of US$50-70 million.

"The top and bottom line opportunities for the company are
considerable and we believe we are well positioned to drive
strong multi-year performance.  Given the industry unknowns in
2007, we expect volume and revenue growth to be on the lower
end, but profit growth to be on the upper end of the company's
long-term targets, as performance recovers from 2006."

Going forward, Cott will no longer provide earnings per share
guidance but will update performance against its business model
each quarter.

Headquartered in Toronto, Ontario, Canada, Cott Corp.
(NYSE:COT; TSX:BCB) -- http://www.cott.com/-- is a non-
alcoholic beverage company and a retailer brand beverage
supplier.  The Company commercializes its business in over 60
countries worldwide, with its principal markets being the United
States, Canada, the United Kingdom and Mexico.  Cott markets or
supplies over 200 retailer and licensed brands, and Company-
owned brands including Cott, Royal Crown, Vintage, Vess and So
Clear.  Its products include carbonated soft drinks, sparkling
and flavoured mineral waters, energy drinks, juices, juice
drinks and smoothies, ready-to-drink teas, and other non-
carbonated beverages.

                        *    *    *

As reported in the Troubled Company Reporter on Sept. 26, 2006,
Moody's Investors Service's affirmed its Ba3 Corporate Family
Rating for Cott Corp. and its B1 Rating on Cott Beverages Inc.'s
8% Subordinate Notes Due 2011, in connection with Moody's
implementation of its new Probability-of-Default and Loss-Given-
Default rating methodology for the U.S. beverage company sector.
Moody's assigned an LGD5 rating to those bonds, suggesting
noteholders will experience a 74% loss in the event of a
default.


COTT CORP: S&P Downgrades Corporate Credit Rating to B+ from BB-
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on
Toronto-based private label soft drink manufacturer Cott Corp.,
by one notch, including its long-term corporate credit rating,
to 'B+' from 'BB-'. The outlook is negative.

The downgrade reflects the many challenges Cott faces including
declining organic sales and profitability, significant senior
management turnover in the past couple of years, inefficient
operations, weakness in internal financial controls
(procurement, segregation of duties, and inventory), and
participation in the difficult carbonated soft drinks (CSD)
industry.

"Given the magnitude of these issues and the expectation of
higher raw material costs (including aluminum) in 2007, we
believe that Cott will remain challenged for some time before
management can turn around operations," said Standard & Poor's
credit analyst Lori Harris.

The ratings on Cott reflect its below-average business risk
profile stemming from a narrow product portfolio, customer
concentration, and small size in a sector dominated by companies
with substantially greater financial resources and market
presence.  Furthermore, the company's weak operating performance
has resulted in an ongoing decline in operating margin since
2003.

These factors are partially offset by Cott's adequate credit
protection and solid market position as the leading private
label manufacturer and marketer of take-home CSDs in the U.S.,
the U.K., and Canada. Cott competes in the mature and highly
competitive CSD market by securing a strong private label share.  
Despite this defensive operating strategy, the company is
vulnerable to pricing and market share actions by its primary
competitors.

Cott is the world's leading retailer-brand beverage supplier and
the fourth-largest manufacturer of CSDs.  Core geographic
operations are in the U.S., the U.K., and Canada, with North
America remaining Cott's most important market.

The negative outlook reflects our concerns about the challenges
the company faces given its weak operating performance. The
ratings could be lowered with continued deterioration in Cott's
operations or weakness in credit protection measures or
liquidity.  In the medium term, there are limited prospects for
the ratings to be raised.  The outlook could be revised to
stable if the company demonstrates improved operating
performance and credit measures.

Headquartered in Toronto, Ontario, Canada, Cott Corp.
(NYSE:COT; TSX:BCB) -- http://www.cott.com/-- is a non-
alcoholic beverage company and a retailer brand beverage
supplier.  The Company commercializes its business in over 60
countries worldwide, with its principal markets being the United
States, Canada, the United Kingdom and Mexico.  Cott markets or
supplies over 200 retailer and licensed brands, and Company-
owned brands including Cott, Royal Crown, Vintage, Vess and So
Clear.  Its products include carbonated soft drinks, sparkling
and flavoured mineral waters, energy drinks, juices, juice
drinks and smoothies, ready-to-drink teas, and other non-
carbonated beverages.


HERBALIFE LTD: Whitney V Offers to Buy Firm for US$38 Per Share
---------------------------------------------------------------
Herbalife Ltd.'s Board of Directors has received a proposal from
Whitney V L.P. and its affiliates to acquire all of the
company's outstanding common stock for US$38.00 per share in
cash.  Whitney and its related parties currently beneficially
own an aggregate of approximately 27% of the company's
outstanding common stock.

The Herbalife Board of Directors has established a Special
Committee consisting solely of independent directors to review
the proposal.  The Special Committee is in the process of
retaining financial and legal advisors to assist the Special
Committee.  The Special Committee has not determined that a
transaction is in the best interests of Herbalife and its
stockholders or that Herbalife should not continue as an
independent public company.  Accordingly, there is no assurance
that Herbalife will enter into this or any other transaction.
Neither the company nor the Special Committee intends to comment
upon or provide further updates regarding these matters until
circumstances warrant.

Herbalife Ltd. (NYSE: HLF) -- http://www.herbalife.com/--
Herbalife, now in its 26th year, conducts business in 62
countries.  The company does business with several manufacturers
worldwide and has its own manufacturing facility in Suzhou,
China as well as major distribution centers in Venray,
Netherlands, Japan, Los Angeles, Calif., Memphis, Tenn., and
Guadalajara, Mexico.

                        *    *    *

Standard & Poor's Ratings Services rated Herbalife Ltd.'s long-
term foreign and local issuer credit ratings at BB+.


HOME PRODUCTS: Court Approves Second Amended Disclosure Papers
--------------------------------------------------------------
The Honorable Christopher S. Sontchi of the U.S. Bankruptcy
Court for the District of Delaware approved the Second Amended
Disclosure Statement explaining the Second Amended Plan of
Reorganization filed by Home Products International Inc. and
Home Products International - North America Inc.

                     Treatment of Claims

Under the Plan, these classes are unimpaired:

   -- Administrative Claims,
   -- Priority Tax Claims,
   -- Class 1 Priority Non-Tax Claims,
   -- Class 2 Prepetition Lender Secured Claims,
   -- Class 3 Miscellaneous Secured Claims,
   -- Class 4 General Unsecured Claims, and
   -- Class 7 Interests in HPI-NA.

Class 5 Noteholder Claims and Class 6 Interests in HPI are
impaired classes.

At the Debtors' option, holders of Allowed Administrative Claims
will be paid:

   -- in full in cash on the later of the plan effective date or
      the date the claim is allowed, or

   -- on terms agreed upon by the holder and the debtors.

Holders of Allowed Priority Tax Claims will receive cash
payments in equal annual installments starting on the
anniversary of the plan effective date, together with interest
on the unpaid balance on the later of the plan effective date,
the date the claim is allowed, or the date the holder and the
Debtors made an agreement.

Holders of Allowed Class 1 Priority Non-Tax Claims will received
cash on the later of the plan effective date, the date the claim
is allowed, or the date the holder and the Debtors made an
agreement.

Holders of Allowed Prepetition Lender Secured Claims will be
allowed in an amount equal to the principal amount outstanding
on the plan effective date plus accrued and unpaid interest,
costs, attorneys' fees, and expeses through the effective date.  
Reorganized HPI-NA will pay the allowed claim in cash on the
later of the plan effective date or the date the claim became
allowed.

At the sole option of the Reorganized Debtors, on the plan
effective date:

   -- the legal, equitable, and contractual rights of each
      holder of Class 3 Allowed Miscellaneous Secured Claims and
      Class 4 Allowed General Unsecured Claims will remain the
      same and will not be discharged upon confirmation of the
      plan, or

   -- the Reorganized Debtors will provide other treatment as
      they and the holders agree.

Holders of Class 5 Allowed Noteholder Claims will receive:

   -- their pro rata share on 95% of the New HIP stock on the
      plan effective date, subject to dilution by the Management
      Incentive Plan Shares and Option.  The holders, however,
      may elect on the ballot to receive, in lieu of the new
      stock, cash equal to $22.97 for each $1,000 of Notes held,
      and

   -- the right to purchase New Convertible Notes.

Holders of Class 6 Allowed Interests in HPI will be cancelled.  
Holders of Class 7 Allowed Interests in HPI-NA, however, will
retain their interests since Old HPI-NA stock will not be
cancelled.

A full-text copy of Home Product's Second Amended Disclosure
Statement is available for free at:

               http://ResearchArchives.com/t/s?1952

A full-text copy of Home Product's Second Amended Plan of
Reorganization is available for free at:

               http://ResearchArchives.com/t/s?1953

                    About Home Products

Headquartered in Chicago, Illinois, Home Products International,
Inc. -- http://www.hpii.com/-- designs, manufactures, and  
markets ironing boards, covers, and other high-quality, non-
electric consumer houseware products.  The Debtor's product
lines include laundry management products, bath and shower
organizers, hooks, hangers, home and closet organizers, and food
storage containers.  Their products are sold under the HOMZ
brand name, and are distributed to hotels, discounters, and
other retailers such as Wal-Mart, Kmart, Sears, Home Depot, and
Lowe's.  The company has operations in Mexico.

The company and its affiliate, Home Products International-North
America, Inc., filed for chapter 11 protection on Dec. 20, 2006
(Bankr. D. Del. Case Nos. 06-11457 and 06-11458).  Eric D.
Schwartz, Esq., at Morris, Nichols, Arsht & Tunnell, represents
the Debtors.  When the Debtors filed for protection from their
creditors, they listed estimated assets between US$1 million and
US$100 million and debts of more than US$100 million.


HOME PRODUCTS: Confirmation Hearing Scheduled on March 8
--------------------------------------------------------
The Honorable Christopher S. Sontchi of the U.S. Bankruptcy
Court for the District of Delaware will convene a hearing at
10:00 a.m. on March 8, 2007, to consider confirming the Second
Amended Plan of Reorganization filed by Home Products
International Inc. and Home Products International - North
America Inc.

Objections to the Plan, if any, must be filed by 4:00 p.m. on
March 2, 2007.

                     About Home Products

Headquartered in Chicago, Illinois, Home Products International,
Inc. -- http://www.hpii.com/-- designs, manufactures, and  
markets ironing boards, covers, and other high-quality, non-
electric consumer houseware products.  The Debtor's product
lines include laundry management products, bath and shower
organizers, hooks, hangers, home and closet organizers, and food
storage containers.  Their products are sold under the HOMZ
brand name, and are distributed to hotels, discounters, and
other retailers such as Wal-Mart, Kmart, Sears, Home Depot, and
Lowe's.  The company has operations in Mexico.

The company and its affiliate, Home Products International-North
America, Inc., filed for chapter 11 protection on Dec. 20, 2006
(Bankr. D. Del. Case Nos. 06-11457 and 06-11458).  Eric D.
Schwartz, Esq., at Morris, Nichols, Arsht & Tunnell, represents
the Debtors.  When the Debtors filed for protection from their
creditors, they listed estimated assets between US$1 million and
US$100 million and debts of more than US$100 million.


HOME PRODUCTS: Appoints Joseph Gantz as Executive Board Chairman
----------------------------------------------------------------
Home Products International Inc.'s Board of Directors has
appointed:

   (a) Joseph Gantz, currently the non-executive chairman of the
       board, as executive chairman of the board to serve until
       his successor is duly elected and qualified, his removal,
       or his resignation, whichever is earlier, and

   (b) Philip G. Tinkler to the board (Class II) to fill the
       vacancy left by the resignation of William C. Pate, who
       resigned from the board effective Jan. 16, 2006.

Mr. Tinkler joined the Audit Committee of the Board of Directors
effective upon his appointment as board member.  Mr. Pate's
resignation was not due to any disagreement with the company.

Mr. Gantz has been a General Partner of The Walnut Group, a
group of affiliated venture capital funds, for more than five
years.  The Walnut Group is an affiliate of Walnut Investment
Partners, L.P., a member of the company's major stockholder,
Storage Acquisition Company, L.L.C.

Mr. Gantz, 58, has also served as Managing Director of Gift
Holdings Management LLC, and Chairman of the Board of Directors
of Blue Ridge International Products Company, each for more than
5 years.

Mr. Gantz was not appointed as the Executive Chairman of the
Board pursuant to any arrangement or understanding between him
and any other persons.  

Mr. Gantz has not, except as may have occurred in connection
with his affiliation with Storage Acquisition Company, L.L.C.,
entered into any related party transactions with the company
since the beginning of its last fiscal year and is not a party
to any currently proposed transactions with the company.

Mr. Gantz is not an employee of the company, and as such, has no
employment agreement with Home Products.

Philip G. Tinkler, 40, has served as the chief financial officer
of Equity Group Investments, L.L.C., a private investment firm
and has served in various other capacities for EGI and its
predecessor since 1990.

An affiliate of EGI is the managing member of the company's
major stockholder, Storage Acquisition Company, L.L.C.  Mr.
Tinkler has been Vice President - Finance and Treasurer of First
Capital Financial, L.L.C., a sponsor of public limited real
estate partnerships, since April 2001.  Mr. Tinkler also served
as the chief financial officer of Covanta Holding Corporation
from January 2003 until October 2004.

Mr. Tinkler was not selected pursuant to any arrangement or
understanding between him and any other persons.  

However, pursuant to a Voting Agreement dated Oct. 28, 2004,
between Mr. Gantz and certain parties, and a Board Composition
Agreement entered into on Oct. 28, 2004, between Mr. Gantz and
certain parties, Mr. Gantz exercised his right to appoint Mr.
Tinkler as a board member.

Mr. Tinkler has not, except as may have occurred in connection
with his affiliation with Storage Acquisition, entered into any
related party transactions with Home Products since the
beginning of its last fiscal year and is not a party to any
currently proposed transactions with the company.

                    About Home Products

Headquartered in Chicago, Illinois, Home Products International,
Inc. -- http://www.hpii.com/-- designs, manufactures, and   
markets ironing boards, covers, and other high-quality, non-
electric consumer houseware products.  The Debtor's product
lines include laundry management products, bath and shower
organizers, hooks, hangers, home and closet organizers, and food
storage containers.  Their products are sold under the HOMZ
brand name, and are distributed to hotels, discounters, and
other retailers such as Wal-Mart, Kmart, Sears, Home Depot, and
Lowe's.  The company has operations in Mexico.

The company and its affiliate, Home Products International-North
America, Inc., filed for chapter 11 protection on Dec. 20, 2006
(Bankr. D. Del. Case Nos. 06-11457 and 06-11458).  Eric D.
Schwartz, Esq., at Morris, Nichols, Arsht & Tunnell, represents
the Debtors.  When the Debtors filed for protection from their
creditors, they listed estimated assets between US$1 million and
US$100 million and debts of more than US$100 million.


TRI-NATIONAL DEVELOPMENT: Gets Court Nod to Sell Real Property
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of
California approved the request of Douglas P. Wilson, the
Bankruptcy Trustee appointed in Tri-National Development Corp's
chapter 11 case, to sell the Debtor's interests in certain real
property.

The real property consisting of multiple legal parcels in
Rosarito Beach, Baja California, Mexico and commonly known as
the Plaza Rosarito Project, Plaza del Sol, or Plaza San
Fernando, which are adjacent to Quinta Del Mar, will be sold on
an "as is, where is" basis.

Interested parties must contact:

          Sean Doyle
          Mexico Retail Advisors, LLC
          Tel: 619-531-1265

             -- or --

          Christopher V. Hawkins
          Sullivan, Hill, Lewin, Rez & Engel
          Tel: 619-233-4100

Headquartered in San Diego, California, Tri-National Development
Corp is an international real estate development, sales and
management company.  The Debtor filed for chapter 11 protection
on Oct. 23, 2001. (Bankr. S.D. Cal. Case No. 01-10964).  Colin
W. Wied, Esq., at C. W. Wied Professional Corporation represents
the Debtor.  On Sept. 23, 2002, the Court appointed Douglas
Wilson as the chapter 11 trustee.  Mr. Wilson is represented by
Christopher V. Hawkins, Esq., and James P. Hill, Esq., at
Sullivan, Hill, Lewin, Rez & Engel, APLC.  When the Debtor filed
for protection from its creditors, it estimated US$50 million to
US$100 million in assets and US$10 million to US$50 million in
debts.




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


* NICARAGUA: New Ministry Handling Regulator's Bidding Process
--------------------------------------------------------------
Nicaraguan energy regulator Instituto Nicaraguense de Energia's
geothermal director Ariel Zuniga told Business News Americas
that the new energy and mines ministry will handle the
regulator's international geothermal exploration and production
bidding process.

This means the tender's schedule will be delayed until further
notice, BNamericas relates, citing Mr. Zuniga.

The report says that the bidding deadline was initially set for
Feb. 15.  

BNamericas underscores that the blocks being auctioned include:

          -- Volcan Casita-San Cristobal,
          -- Caldera de Apoyo, and
          -- Volcan Mombacho.

According to BNamericas, the blocks have combined potential to
generate 1.5 gigawatts.  The firms that have presented offers
are US' Ormat and Italy's Enel.

BNamericas underscores that President Daniel Ortega formed the
ministry as part of an organizational reform.

Mr. Zuniga told BNamericas that the ministry will promote energy
investments while the regulator retain its regulatory
responsibilities.  The regulator has transferred to the ministry
the task of coordinating the second round bidding for offshore
oil exploration and production contracts.

The regulator had pre-qualified four firms.  The pre-
qualification phase was due to close this month.  Blocks in the
second round cover 84,123 square kilometers off the Caribbean
coast and 33,546 square kilometers off the Pacific coast,
BNamericas states.

                        *    *    *

Moody's Investor Service assigned these ratings to Nicaragua:

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




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


* PARAGUAY: President Names Carmelo Ruggilo as Conatel Head
-----------------------------------------------------------
Paraguayan President Nicanor Duarte has appointed Carmelo
Ruggilo as head of telecoms regulator Conatel, Business News
Americas reports.

BNamericas relates that Mr. Ruggilo will replace Jorge Pavetti.  
Mr. Ruggilo has two and half years of experience as a board
member of Conatel.  He plans to focus on initiatives to
encourage investment in the telecoms sector and job creation.

According to news service Portal Paraguayo de Noticias,
President Duarte also dismissed the state-run telecom Copaco's
head Osmar Lopez.

BNamericas says that there is yet no information regarding Mr.
Lopez's replacement, nor has President Duarte disclosed the
reason for the dismissal.

BNamericas underscores that other officials being replaced
include:

          -- minister for agriculture and cattle Ricardo Garay,

          -- port authority Administracion Nacional de
             Navegacion y Puertos Oscar Navarro, and

          -- livestock health service Senacsa head Hugo
             Corrales.

                        *    *    *

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: Secures US$1.1MM Loan to Unite Microfinance Institutions
----------------------------------------------------------------
The Inter-American Development Bank's Multilateral Investment
Fund approved a US$1.1 million for the consolidation of private
microfinance institutions in Peru.

The goal of the project is to improve access to quality
financial services for underbanked rural sectors in Peru by
strengthening the capacity of the rural savings and loan banks
or CRACs and the small business and microenterprise development
agencies or Edpymes.

Peru has about 3.1 million microenterprises and small businesses
that employ about 70% of the working population and generate
approximately 42% of gross domestic product.  Although there are
many financial entities that serve the microenterprise sector,
much of the low-income population remains without access to
financial services.

CRACs and Edpymes have undertaken a joint program to strengthen
their technical, operational and management capacities in order
to increase the supply of microfinance services to this
underserved population, strengthen the quality of current
services and become more competitive.

"This is the first time that two microfinance competitors have
formed an alliance to find a common solution to a shared
problem, seeking to transform the sector over the long term,"
said Dieter Wittkowski, IDB project team leader.  "The operation
will allow these two competitors to share lessons learned and
best practices in their respective areas of specialization."

The grant will be executed by the Association of Edpymes of Peru
or ASEP and the Association of Rural Savings and  Loan Banks of
Peru or ASOCAJAS.

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

                        *    *    *

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


CELESTICA INC: Names John Peri as Exec. VP of Global Operations
---------------------------------------------------------------
Celestica Inc. appointed John Peri to the position of Executive
Vice President, Global Operations.  In his new role, Mr. Peri
will be responsible for driving operational excellence
throughout Celestica's global manufacturing network.

Mr. Peri previously held the role of President, Asia Operations,
with responsibility for Celestica's manufacturing footprint in
China, Hong Kong, Japan, Malaysia, Philippines, Singapore and
Thailand.  Prior to that, he held senior-level positions in the
areas of quality, manufacturing excellence, services and
regional leadership.

"Through his expanded role, John will drive operational
excellence and execution and will continue to strengthen our
manufacturing network around the world," said Craig Muhlhauser,
President and Chief Executive Officer.  "His experience in
delivering benchmark levels of performance throughout our Asia
operations will enable him to apply best practices across all
regions."

Mr. Peri succeeds James Rowan who has left the business,
effective immediately.  Mr. Peri's previous role as the
President of Celestica's Asia operations will not be filled. He
will continue to be responsible for the operational performance
of the region in his new role.

Celestica also announced that Guy Delisle will be joining the
company to assume leadership of Celestica's operations in
Monterrey, Mexico.  Mr. Delisle joins Celestica from Sanmina-
SCI, with over 20 years of experience in the electronics
manufacturing services industry.  Guy will report directly to
Craig Muhlhauser.

"I'm pleased to welcome Guy to the Celestica team," said Mr.
Muhlhauser.  "I'm confident that his skills and industry
experience will drive greater operational efficiencies in Mexico
and help to return the site to profitability."

The company announced additional organizational changes.  
These changes reflect Celestica's efforts to establish a more
efficient and clearly defined organization aligned to its
business strategy and to create a streamlined, high-performing
organization focused on delivering profitable growth and the
ultimate customer experience.

These changes include:

   -- Celestica's Corporate Strategy team will now be aligned
      with the company's Strategic Business Development group.
      As a result, Art Cimento, Senior Vice President,
      Corporate Strategy will be leaving Celestica.  Since
      joining the company in 1999, Mr. Cimento helped to guide
      Celestica's growth through his deep understanding of
      industry trends and their impact on Celestica and its
      customers.

   -- Responsibility for the Global Human Resources
      organization will transition to Elizabeth DelBianco, who
      will also continue in her role as the company's Chief
      Legal Officer.  Lisa Colnett, Senior Vice President,
      Human Resources has announced her intention to leave
      Celestica.  One of Celestica's founding executives,
      Ms. Colnett has done an excellent job leading and
      strengthening the Global Human Resources organization
      over the past three years.  Throughout her career with
      Celestica she held a number of senior roles including
      Chief Information Officer.

   -- The company's Sales function will now fall under the
      appropriate market segment teams and will be aligned with
      global customer business units.  As a result, Robert
      Sellers, Senior Vice President, Global Sales will be
      leaving the business.  Mr. Sellers played a key role in
      instilling a disciplined, consultative selling approach
      throughout Celestica's Global Sales organization,
      positioning Celestica for future success.

   -- The Global Engineering and Technology Organization will
      now be aligned with the Operations Planning team and Dan
      Shea, Chief Technology Officer, will retire from the
      company.  Mr. Shea joined Celestica from IBM Canada as
      one of the organization's original management team.  He
      has provided tremendous leadership throughout his career
      at Celestica and over the past few years has driven the
      company's reputation as a technology leader.

"Our new organization design will consolidate functions within
the current organization, reducing overlap and duplication in
roles and responsibilities and driving clearer accountability,
greater simplicity and increased speed," said Mr. Muhlhauser.

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

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

                        *    *    *

As reported in the Troubled Company Reporter on Feb. 2, 2007,
Standard & Poor's Ratings Services placed its ratings, including
its 'BB-' long-term corporate credit rating, on Celestica Inc.
on CreditWatch with negative implications.  This action follows
the company's weak fourth-quarter (ended Dec. 31, 2006)
operating results, which reflected larger-than-expected weakness
in end-market demand, particularly with respect to key
telecommunications clients and persistent problems at the
company's Mexican operations.


CELESTICA INC: Fitch Puts Ratings' Outlook to Negative
------------------------------------------------------
Fitch Ratings has changed its Ratings Outlook for Celestica Inc.
to Negative from Stable and affirmed the following ratings:

   * Issuer default rating at 'BB-';
   * Unsecured credit facility at 'BB-';
   * Senior subordinated debt at 'B+'.

Fitch's action affects approximately US$750 million of debt.

The Ratings and Negative Outlook reflect:

    i) negative operational issues that precipitated a drop in
       demand from telecom customers which, when combined with
       seasonal factors, led to a sequential decline in revenue
       and profitability in fiscal fourth quarter 2006;

   ii) expectations for continued declines in revenue and EBIT
       margin in the first half of 2007 due to customer
       attrition as management attempts to resolve its execution
       issues;

  iii) limited financial leverage with total debt/operating
       EBITDA of 2.9x along with a net cash position for the
       company at the end of 2006; iv) modest but positive free
       cash flow over the past two quarters.

Ratings concerns center on:

    i) the potential for continued declines in revenue beyond
       the first half of 2007;

   ii) further weakening in operating metrics due to lower than
       expected revenue and/or continued execution issues;

  iii) limited liquidity in the revolving credit facility due to
       a leverage covenant which currently limits additional
       debt incurrence to approximately US$60 million, although
       Fitch believes Celestica will be able to renew this
       facility before it expires in June 2007 and potentially
       improve liquidity; and

   iv) significant customer concentration with the top ten
       customers accounting for approximately 60% of revenue
       including IBM and Cisco, both of which were 10% customers
       in 2006.

In addition, Celestica is highly dependent on the communication
and information technology sectors, which combined account for
roughly 75% of total revenue.

Ratings strengths include:

    i) limited debt maturities until 2011;

   ii) a well established customer base and significant scale in
       core markets; and

  iii) positive long-term trends towards increased outsourcing
       of manufacturing services across numerous industries.

Fitch believes that a decline in operating metrics beyond that
expected during the first half of 2007 or a lack of improvement
to operations in the second half of 2007 could lead to further
negative ratings action, as could the further incurrence of
debt.  Conversely, significant improvements in operating
performance including successfully correcting customer attrition
issues could stabilize the ratings.

As of Dec. 31, 2006, liquidity was adequate with no near-term
debt maturities and was supported by approximately US$804
million of cash and cash equivalents and an undrawn US$600
million senior unsecured revolving credit facility expiring June
2007.  The leverage covenant contained within the credit
agreement currently limits the incurrence of additional debt to
approximately US$60 million.  Celestica also has a committed
agreement providing the company with the ability to sell up to
US$250 million of accounts receivable to a third party financial
institution plus additional receivables at the discretion of the
purchaser, which expires November 2007.  As of Dec. 31, 2006,
total debt was approximately US$750 million and consisted
primarily of i) US$500 million 7.875% senior subordinated notes
due 2011 and ii) US$250 million 7.625% senior subordinated notes
due 2013.

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


NEWCOMM: Seeks to Retain Wiley as Special Communications Counsel
----------------------------------------------------------------
Newcomm Wireless Services, Inc., has asked the U.S. Bankruptcy
Court for the District of Puerto Rico to authorize the retention
and employment of Wiley Rein & Fielding LLP as its special
communications counsel, nunc pro tunc to Nov. 28, 2006.

Wiley Rein & Fielding will:

   (i) continue to negotiate and resolve an enforcement
       matter currently before the FCC;

  (ii) draft, file and prosecute license assignments and
       transfers of control related to the bankruptcy filing;

(iii) provide assistance with respect to FCC due diligence
       matters in the sale of FCC licenses; and

  (iv) give such other legal advice as may be necessary in
       connection with any of the foregoing.

Subject to court approval, Wiley Rein & Fielding declared that
it is willing to serve as the Debtor's special communications as
counsel and to perform the services described above.

The Firm will bill the Debtor in tenths of hours.  The Firm's
professional bills are based at these hourly rates:

   Designation                  U.S. (in US$)
   -----------                  -------------
   Robert L. Petit               540 (adjusted to 565
                                 starting Jan. 1, 2007)
   Eric W. DeSilva               450 (adjusted to 485
                                 starting Jan. 1, 2007)  
   Partners                      375 - 700     
   Counsel & Consultants         210 - 525
   Associates                    225 - 395
   Legal Support Personnel       100 - 180

Robert L. Petit and Eric W. DeSilva will be primarily
responsible for this matter.

From Oct. 31, 2005, through Nov. 15, 2006, the Debtor has paid
Wiley Rein & Fielding approximately US$168,984.64 in connection
with the Firm's representation of the Debtor before the Federal
Communications Commission.  Because of the timing of the
petition and the normal delays in posting disbursements to the
Firm's computerized billing system, it is possible that there
will be certain relatively minor pre-petition amounts
outstanding.  Wiley Rein & Fielding has received a US$10,000
retainer from the Debtor for post petition services.       
   
To the best of the Debtor's knowledge, information and belief,
it appears that that Wiley Rein & Fielding has no connection
with the Debtor, its creditors, or any other party interested
herein, or their respective attorneys or accountants, or the
United States trustee or any person employed in the Office of
the United States Trustee.

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


SIMMONS BEDDING: S&P Puts CCC+ Rating on US$275MM Unsec. Loan
-------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'CCC+' debt
rating to Atlanta, Ga.-based Simmons Super Holding Company
(Simmons HoldCo; an entity that will become the new parent of
Simmons Company) proposed US$275 million senior unsecured PIK
toggle term loan due 2012.  At the same time, Standard & Poor's
lowered its long term corporate credit rating on Simmons Company
to 'B' from 'B+'.  The outlook is stable.

"The rating downgrade is due to Simmons Company's more
aggressive financial policy and very high debt leverage, as the
company is issuing additional debt to finance a dividend to its
shareholders," said Standard & Poor's credit analyst Susan Ding.  
"We had expected the company to reduce debt to EBITDA to below
6x by the end of 2006.  Instead, we estimate adjusted leverage
pro forma for the refinancing will increase to the 7.0x-7.5x
range."

The speculative-grade ratings on Simmons Company, which is
analyzed on a consolidated basis with indirect subsidiary
Simmons Bedding Co. and holding company Simmons HoldCo, reflect
its narrow business focus, very aggressive financial policy, and
highly leveraged financial profile.  Somewhat mitigating these
factors are the company's well-recognized brands, solid market
position, and the mattress industry's relatively stable demand
and significant barriers to entry.

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.


SUNCOM WIRELESS: Moody's Assigns Caa3 Corporate Family Rating
-------------------------------------------------------------
Moody's lowered the probability of default rating of SunCom
Wireless Inc. to LD (limited default), placed the company's Caa3
corporate family rating under review for possible upgrade and
placed its B2 senior secured, Caa2 senior unsecured and Ca
senior subordinate ratings under review direction uncertain.  At
the same time, Moody's affirmed SunCom's SGL-3 speculative grade
liquidity rating and said it would subsequently restore SunCom's
probability of default rating to Caa3 and place that rating
under review for possible upgrade yesterday.

The rating action follows the announcement by Suncom's parent,
SunCom Wireless Holdings, Inc., that it has reached a consensual
agreement with certain bondholders to exchange more than 91% of
SunCom's senior subordinated notes totaling roughly US$680
million for approximately 87% of its common stock.  In addition,
SWHI announced it would explore certain strategic alternatives,
including the possible sale of the company.  Moody's notes the
debt exchange is subject to shareholder and other customary
approvals and is expected to be completed in the second quarter
of 2007, while the timing of any resolution to the company's
review of its strategic alternatives is uncertain.  Moody's has
lowered the company's probability of default rating to LD now as
the rating agency expects the debt exchange to be completed
pursuant to the agreement and views the debt exchange as a
default on the company's senior subordinate obligations.  The
probability of default rating will be restored to the same level
as the corporate family rating and placed under review for
possible upgrade following the recognition of the default.

Once the exchange agreement is implemented, SunCom's unadjusted
debt total is expected to reduce by roughly 40% to about
US$1 billion, which will provide the company with increased
financial flexibility by reducing annual interest payments by
approximately US$62 million.  While Moody's continues to expect
SunCom to consume modest amounts of cash for the foreseeable
future, the significant reduction in interest expense will
provide necessary financial breathing room which Moody's
believes may provide the company with an adequate amount of time
to potentially deal with the assortment of operational
challenges it faces.  The combination of the expected meaningful
reduction in debt and the potential for SunCom's operational
performance to improve has caused Moody's to place the company's
corporate family rating under review for possible upgrade.

The review will focus on:

   1) the potential for SunCom to continue its very recent trend
      of subscriber growth and margin improvement, and,

   2) the resulting implications for the company to stem its
      cash consumptiveness.

SunCom's senior secured, senior unsecured as well as a small
amount of senior subordinated debt will remain outstanding
following the debt exchange.  These related ratings have been
placed under review direction uncertain as the company's capital
structure will be meaningfully altered through the debt exchange
transaction and final rating levels are contingent upon
resolution of the corporate family rating.

This rating is downgraded:

   -- Probability of Default Rating: to LD from Caa3
      (subsequently to be restored to Caa3 and placed under
       review for possible upgrade).

Thisa rating is placed under review for possible upgrade:

   -- Corporate Family Rating Caa3.

The ratings placed under review direction uncertain:

   -- US$250 million Senior Secured Term Loan due 2009, B2, LGD
      1, 3%;

   -- US$714 million 8.5% Senior Notes due 2013, Caa2, LGD 3,
      37%;

   -- US$340 million 9.375% Senior Subordinate Notes due 2011,
      Ca, LGD 5, 83% (to be reduced to approximately US$38
      million once the debt exchange is completed);

   -- US$391 million 8.75% Senior Subordinate Notes due 2011,
      Ca, LGD 5, 83% (to be reduced to approximately US$13
      million once the debt exchange is completed).

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




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


AMERICAN AIRLINES: Obtaining US$175 Million Client Revenue
----------------------------------------------------------
American Airlines Maintenance Services -- the marketing arm of
American Airlines' maintenance organization -- and the Transport
Workers Union or TWU, which represent the airline's maintenance
workers, have set a goal of obtaining US$175 million in customer
revenue in 2007.

For the past three years, American Airlines and the TWU have
been working together as business partners to transform the
airline's maintenance organization from a cost center to a
profit center.  Using the principles of Continuous Improvement,
the maintenance team has increased productivity and
efficiencies, reduced costs, and significantly optimized
operations.  Thus, American Airlines has been able to
successfully compete for customers' maintenance requirements.

The maintenance organization's transition to becoming "Best in
Class" in all maintenance, repair and overhaul processes at its
line and base maintenance facilities has created opportunities
for American Airlines to competitively bid for a wide variety of
maintenance and engineering services for other airlines,
aircraft leasing companies, and individual aircraft owners.  By
doing so, American Airlines is using its maintenance operation
to generate substantial customer revenue.  In 2006, American
Airlines generated almost US$95 million in customer revenue and
expects that to grow in 2007 to US$175 million, not including
the US$225 million of engine overhaul work for customer airlines
by Texas Aero Engine Services Limited or TAESL, a joint venture
between American and Rolls-Royce.

"American's (Airlines) long-term vision is to transform its
maintenance organization into a world-class Maintenance,
Overhaul and Repair (MRO) business that offers our customers a
one-stop shop for most of their maintenance requirements, be it
airframe, component, engine overhaul, engineering services or
line maintenance.  We will continue this momentum by investing
in technology, process improvements, and increasing our
productivity while continuing to reduce overall costs for our
customers.  The Continuous Improvement processes embraced by our
entire M&E (mechanical and electrical) organization will allow
us to offer a comprehensive array of competitive technical
services to continue growing our customer contracts," Bob
Reding, American Airlines' Senior Vice President of Technical
Operations, said.

Obtaining US$175 million in customer revenue in 2007 will be
achieved by:

          -- more overhaul work at American's three maintenance
             bases in:

             * Fort Worth, Texas;
             * Kansas City, Mo.; and
             * Tulsa, Oklahoma;

          -- additional routine, and
          -- "on-call" maintenance work by the airline's line
             maintenance organization.

Each of these organizations created Breakthrough Goals that were
designed to reduce costs and generate revenue, while at the same
time encouraging employees to find innovative ways to streamline
operations.

"We offer what other vendors can't -- comprehensive on-site
service and an extremely talented and driven workforce.  We can
repair most parts on-site.  Given the immense knowledge of our
team, American can reduce out-of-service times, returning the
aircraft, engine or component to the customer quicker, allowing
them to either start producing revenue earlier with the aircraft
or reducing the cost of inventory for engines or components.  In
any case, doing business with American Airlines Maintenance
Services means competitive prices at the highest quality with
the best turn times in the industry," John Conley, AA System
Coordinator and International Representative of TWU, noted.

In March 2005, a joint labor-management team at American's
largest maintenance facility in Tulsa disclosed a "Breakthrough
Goal" to generate US$500 million in value creation -- a
combination of cost reductions and revenue that would turn the
base from what has traditionally been a cost center into a
ground-breaking profit center.

Tulsa surpassed its aggressive breakthrough goal by reaching
more than US$501 million.  This was achieved through the use of
joint management and union representation on teams that focused
on areas such as technology, marketing and turn-time reductions.

"It truly took a joint effort to achieve this goal, but we
always knew we would reach it because we made the decision not
to let others decide our future.  This is only the first step.  
We must continue down the path we are on and keep working to
improve our future," Dennis Burchette, President of TWU Local
514, stated.

Tulsa recently obtained a four-year, US$30 million contract with
Allegiant Air to provide engineering, planning, technical and
reliability services, certain component and landing gear repair
and overhauls, as well as airframe overhauls, known as "Heavy C"
checks, for Allegiant's current fleet of 24 MD80 series
aircraft, plus any additional MD80 series aircraft as Allegiant
grows.

Due to the US$22.3 million American Airlines received from the
Tulsa Vision 2025 sales tax program approved by voters in
September 2003, the airline has made vast improvements that have
helped secure customer contracts.  Funding has been invested to
improve working conditions on the shop floor, upgrade
information technology systems, and improve the base's
wastewater treatment plant, among other improvements.

"By making an investment in American Airlines, Tulsa made a huge
investment in itself.  The Vision 2025 funds have allowed us to
keep work in-house, and help make us competitive enough to
secure lucrative customer work.  The progress we have made in
Tulsa would not have been possible without the Vision 2025
funds," Carmine Romano, American Airlines' Vice President of
Tulsa Maintenance and Engineering Base, said.

On Feb. 9, 2006, a joint team of management and labor leaders
from the Kansas City maintenance and engineering base disclosed
a Breakthrough Goal to generate US$150 million in value creation
and also turn the base into a profit center.

Their goal of transforming the base -- which employs about 900
people -- will be achieved through American Airlines' successful
Continuous Improvement Process that is designed to reduce costs
and generate new customer maintenance, contract-driven revenues.

As of December 2006, Kansas City was at US$24.7 million toward
meeting their goal.  The base has also started upgrades on its
facilities, which will help make it more attractive for
customers.  The first phase of the renovation project includes
upgrading the narrow-body hangar.  Repairs will include two
passenger elevators, a freight elevator, upgrading the roof, and
a hangar door.

The second phase of the project will involve the "superhangers,"
which are used for wide body aircraft.  The renovations will
include updating the hangars and its shops.  This work will
start in 2007.

A team of management and Transport Workers Union Local 567
members employed at American Airlines' Alliance maintenance base
in Fort Worth, including TAESL, set a breakthrough goal on
May 11, 2006, to obtain US$400 million in value creation by the
end of 2008.

As of December 2006, the Alliance base had achieved US$67.4
million toward its Breakthrough Goal.  A prime example of
American Airlines' ability to provide competitive maintenance
work to third parties is its joint venture with Rolls-Royce.  
TAESL was formed in April 1998 to repair and overhaul the RB211
engine, which American Airlines has on its Boeing 757 fleet, and
the Trent 800 engine, which is on American's Boeing 777
aircraft.  The TAESL joint venture has generated more than 200
additional jobs specifically tied to the growth of engine
maintenance work performed for new customers.

In August 2006, a joint team of management and TWU represented
members from American Airlines' line maintenance bases set a
breakthrough goal to obtain US$95 million in recurring savings
for the airline by the end of 2008.  More than 65 TWU and
management leaders met to identify maintenance opportunities and
challenges with regard to enhancing the company's
competitiveness.

The goal will be reached through cost reductions, additional
customer work, improved dependability through reducing delay
hours, and reducing the amount of spare aircraft for maintenance
needs.  The group chartered several teams on topics that are
critical to achieving the goal of US$95 million by the end of
2008.

American Maintenance Services offers a full line of airframe,
engine and component, and line maintenance services, customizing
those services to meet the specific needs of the client.  
American Airlines' maintenance, repair and operations business
has 62 different customers located in North and South America.  
Services are provided by all three of American Airlines'
maintenance bases and at line maintenance locations in:

          -- Dallas/Fort Worth
          -- St. Louis
          -- San Francisco
          -- Los Angeles, and
          -- other cities in the central and western United
             States, plus Latin America and Europe.

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

                        *    *    *

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


* URUGUAY: State Oil firm Lowers Fuel Price Average
---------------------------------------------------
The Uruguayan presidential Web site reports that its state oil
firm Ancap has decreased the average price of fuel by 2.4%.

According to the Web site, the drop in the average fuel price
was due to lower international oil prices.

The Web site relates that Ancap used an oil price of US$54 per
barrel as a reference.

Ancap will invest US$100 million in 2007, Business News Americas
states.

                         *    *    *

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




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


ARVINMERITOR: Inks Pact to Sell Emissions Tech. to One Equity
-------------------------------------------------------------
ArvinMeritor, Inc., has signed a definitive agreement to sell
its Emissions Technologies business group to One Equity
Partners, an equity investment firm based in New York.  Cash and
other consideration total approximately USUS$310 million.  The
transaction is expected to be completed in the third quarter of
fiscal year 2007.

"The decision to sell our Emissions Technologies business is
part of our long-term strategy to refocus our company and
concentrate on the strengths and core competencies that will
generate future earnings growth for ArvinMeritor," said
Chairman, CEO and President Charles G. "Chip" McClure.  "The
proceeds from this sale will support our continued efforts to
strengthen our balance sheet, and increase our ability to invest
in technology, research and development that more closely aligns
with our strategic focus on selected vehicle systems."

                   ArvinMeritor's Future

"By focusing on and investing in our light and commercial
vehicle businesses where we have superior products, strong
market positions and higher margins, we see greater potential
for sustained profitable growth in our core capabilities," Mr.
McClure said.  These include:

   * Chassis -- vehicle stability (ride and handling -- braking
     and suspension systems and wheels);

   * Drivetrain -- vehicle propulsion (steer axles, drivelines,
     suspensions, trailer axles and all-wheel drive systems and
     hybrids); and

   * Apertures -- vehicle safety and security (body and control
     systems, such as doors and roofs).

"We continue to be committed to diversifying our customer base,
expanding our global presence and strengthening our product
portfolio in areas that provide the highest value to our
customers and return the greatest value to our shareowners,"
McClure continued.

"In addition, we are implementing an aggressive strategy in
Asia, and committing resources to sustainable and profitable
growth in this region," said Mr. McClure.  "We also are planning
to increase our global aftermarket and specialty businesses, and
we are funding advanced engineering, research and development
initiatives that will better position us for the challenges
ahead."

ArvinMeritor's overarching strategy is to become a global
systems leader in its target markets, to build product
technology and develop capabilities that are scalable across
markets and platforms, and to profitably commercialize solutions
that meet customers' growing needs.

"ArvinMeritor's new Performance Plus program also is helping to
transform the company by identifying revenue growth and cost
savings opportunities that will position us for future global
expansion and success.  Together with the transaction we are
announcing today, Performance Plus will help us build a more
focused, sustainable and profitable business model for
ArvinMeritor," Mr. McClure added.

                   Emissions Technologies

"While we are confident in the growth potential of the emissions
technologies portfolio, we believe that this business will be
better served by an organization that is specifically positioned
to invest capital and management resources in its development
and growth," Mr. McClure added.

"One Equity is looking forward to working with the Emissions
Technologies management team to execute a focused and aggressive
growth plan," said One Equity Senior Partner, Lee Gardner.  "We
believe that the worldwide push to reduce pollutants and
greenhouse gas emissions will create long-term opportunities for
companies focused on advanced exhaust and emissions technology,
and we are very pleased to be acquiring a leading company in
this industry.  We will seek to build on the competitive
strengths of the business and position it for long-term
success."

The Emissions Technologies business is a leader in the global
emission technology industry, serving worldwide light and
commercial vehicle manufacturers.  The business has operations
in 19 countries, 7,500 employees and several long-term joint
venture relationships.  H. H. "Buddy" Wacaser, President of
Emissions Technologies, and his management team will continue to
lead it following the close of the transaction.

Once the transaction closes, the new Emissions Technologies
company will have dual headquarters in Columbus, Indiana, as
well as in the metro Detroit area.

JPMorgan Securities is providing the debt financing in
connection with this transaction.

The transaction is subject to standard regulatory approvals,
including review under the Hart-Scott-Rodino Antitrust
Improvements Act. Consultation with employee representatives
will also take place.

                        2007 Outlook

After the sale of its Emissions Technologies business,
ArvinMeritor will have about 20,000 employees, with 75
facilities in 22 countries. The company will maintain its
diversified customer mix and a strong global presence.

The company anticipates sales from continuing operations in
fiscal year 2007 in the range of US$5.9 billion to US$6.1
billion, and the outlook for full- year diluted earnings per
share from continuing operations to be in the range of US$1.00
to US$1.10.  Cash flow guidance for fiscal year 2007 is US$50
million to US$100 million.  This guidance assumes that the
Emissions Technologies transaction closes during the third
quarter of fiscal 2007, and excludes gains or losses on
divestitures, restructuring costs, and other special items,
including potential extended customer shutdowns or production
interruptions.

The company reduced its fiscal year 2007 forecast for light
vehicle production to 15.3 million vehicles in North America,
down from 15.8 million forecast last quarter.  The company's
forecast for Western Europe is unchanged at 16.1 million
vehicles.

ArvinMeritor's forecast for North American Class 8 truck
production is 235,000 units in fiscal year 2007 (200,000 for the
2007 calendar year), unchanged from our previous forecast. The
company's fiscal year 2007 forecast for heavy and medium truck
volumes in Western Europe is 475,000 units, up from the previous
forecast of 419,000.

                 About One Equity Partners

One Equity Partners manages US$5 billion of investments and
commitments for JPMorgan Chase & Co. in direct private equity
transactions. Partnering with management, One Equity invests in
transactions that initiate strategic and operational changes in
businesses to create long-term value.  One Equity's investment
professionals are located across North America and Europe, with
offices in New York, Chicago and Frankfurt.

                      About ArvinMeritor

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

                        *    *    *

As reported in the Troubled Company Reporter on Jan. 26, 2007,
Standard & Poor's Ratings Services lowered its ratings on
automotive components supplier ArvinMeritor Inc., including its
long-term corporate credit rating to 'BB-' from 'BB'.

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


ARVINMERITOR INC: S&P Says Tech Biz Sale Won't Affect Ratings
-------------------------------------------------------------
Standard & Poor's Ratings Services said that its ratings and
outlook on ArvinMeritor Inc. (ARM; BB-/Stable/B-1) are not
affected following the company's announcement that it has agreed
to sell its Emissions Technologies business to private equity
firm One Equity Partners for US$310 million.  ARM has been
selling assets to both narrow the company's focus and improve
the financial profile.  This ongoing effort to improve liquidity
and reduce debt was a factor in assigning a stable outlook in
our late 2006 downgrade.  While the ET sale is larger than most
recent asset sales, S&P would still expect that a substantial
portion of the cash proceeds will be used to strengthen the
balance sheet.  The sale reduces ARM's diversity, but also
eliminates a significant exposure to stainless steel price
fluctuations.  S&P still expects that ARM's financial profile
will remain weak during the next fiscal year or perhaps longer,
as it continues to face challenges in both its light vehicle and
commercial vehicle businesses.  ARM is assuming the ET sale
closes in the third fiscal quarter, and has lowered its cash
flow guidance for fiscal 2007 to US$50 million - US$100 million,
down from US$75 million - US$125 million.  However, even before
the ET sale, the company had virtually eliminated all debt
maturities through 2011.  In addition, Standard & Poor's expects
some benefits over time from enhanced management focus on ARM's
weak profitability.

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


BRASKEM SA: Investmenting in Venezuelan Oil Market
--------------------------------------------------
Braskem SA will invest in Venezuela as part of its US$3-billion
joint venture with Pequiven SA, a unit of Venezuelan state oil
Petroleos de Venezuela SA, Bloomberg reports.

Bloomberg relates that Pequiven said in April that Braskem would
replace Exxon Mobil Corp. as its partner in a venture.  The
project had been under study for over 10 years as part of
Venezuela's goal to boost its petrochemicals output by 2012.

Braskem chief executive officer Jose Carlos Grubisich explained
to Bloomberg, "It is a project that is in line with the
Venezuelan government's plans.  We set a model that will satisfy
both partners.  The two sides are committed to the development
of the project."

Mr. Grubisich told that local press that Venezuela's President
Hugo Chavez's plans to nationalize firms in the telephone,
electricity and oil sectors won't affect the company's
investments.

According to Bloomberg, President Chavez said that the
Venezuelan government would take control of four heavy crude oil
joint ventures in the Orinoco Belt by May 1.  

Bloomberg underscores that US President George W. Bush and other
heads of the state criticized Venezuela's decision to
nationalize the Orinoco projects, as it could hurt investments
of Chevron Corp., Exxon, ConocoPhillips and BP Plc.

Grubisich told Bloomberg that the venture will supply the
domestic market and export to US, Mexico and Europe.  The first
plant of the complex may begin production in 2009.  The entire
project will be launched in 2011.

Braskem -- http://www.braskem.com.br/-- is a thermoplastic
resins producer in Latin American, and is among the three
largest Brazilian-owned private industrial companies.  The
company operates 13 manufacturing plants located throughout
Brazil, and has an annual production capacity of 5.8 million
tons of resins and other petrochemical products.

                        *    *    *

Standard & Poor's Ratings Services assigned on Sept. 22, 2006,
its 'BB' senior unsecured debt rating to the proposed up to
US$275 million bonds due Jan. 2017 to be issued by Brazil-based
petrochemical company Braskem S.A. (BB/Stable/--).  The bonds
will rank pari passu with the company's other senior unsecured
notes.

Fitch assigned on Sept. 20, 2006, a rating of 'BB+' to Braskem
S.A.'s proposed issuance of US$275 million senior unsecured
notes due to 2017.  The notes are being offered under Rule 144A
Regulation S.  The proceeds of the offering are expected to be
used to prepay existing debts and extend debt maturities. Fitch
also maintains foreign currency and local currency Issuer
Default Ratings of 'BB+' and a national scale rating of
'AA(bra)' for Braskem.  Fitch said the Rating Outlook is Stable.


PETROLEOS DE VENEZUELA: Appoints Jose Parada as Division Head
-------------------------------------------------------------
Venezuelan energy and oil minister Rafael Ramirez has appointed
Jose Luis Parada as head of the troubled western division of the
state-run oil company Petroleos de Venezuela SA, Business News
Americas reports, citing company officials the firm's HQ unit in
Maracaibo, Zulia.

The officials told BNamericas that Mr. Parada will be replacing
Ricardo Coronado.

Figures from the Petroleos de Venezuela indicated that the
western division has consistently produced about 100,000 barrels
per day below its goal of over one million barrels per day,
BNamericas notes.  

BNamericas relates that as the western division's new head, Mr.
Parada will have to deal with international oil majors like
Chevron and Brazil's Petroleo Brasileiro, which collaborate with
Petroleos de Venezuela in several projects in the region.  Mr.
Parada also received a order to double output by 2012.  

However, reports say that the division lacks the natural gas to
increase the output.

The military had to create Oro Negro, a special task force, to
deal with theft at the western division installations,
BNamericas states.

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

                        *    *    *

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


PETROLEOS DE VENEZUELA: Output Cut Sums 195,000 Barrels Per Day
---------------------------------------------------------------
Petroleos de Venezuela SA said in reports it will comply with
the country's production quota in accordance with the
Organization of Petroleum Exporting Countries' guidelines.

Oil Minister Rafael Ramirez said that Venezuela's cuts of
195,000 barrels per day will be split among the four Orinoco
heavy crude projects, Reuters reports.

The oil cartel has committed to a total output cut of 1.7
million barrels per day to curb the lowering of crude prices.

"What we have in the (Orinoco) belt we are going to keep cut,
plus PDVSA's own production to complete the level of the cut,"
the oil minister was quoted by Reuters as saying.

In October last year, the Latin American nation agreed to reduce
daily production by 138,000 barrels.  It agreed to an additional
57,000 bpd cut that took effect on Feb. 1, Reuters says.

According to the Associated Press, Venezuela is one of the
bloc's price hawks.  Venezuelan leader Hugo Chavez was
instrumental in raising oil prices from about US$10 per barrel
in 1999 to more than US$50 per barrel in 2006.

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

                        *    *    *

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


PETROLEOS DE VENEZUELA: To Take Over Orinoco Projects by May 1
--------------------------------------------------------------
With his newly granted special powers, Venezuelan President Hugo
Chavez will take over the four heavy-crude projects at the
Orinoco Oil Belt by May 1.

The Venezuelan leader said in reports that operators of
Petrozuato, Cerro Negro, Sincor and Ameriven projects can leave
the country if they refuse to become minority partners of the
government.

"I'm sure they will accept because we will continue to be
partners, but if they do not agree, they are free to leave,"
President Chavez was quoted by state news agency ABN.

Petroleum PLC, Exxon Mobil Corp., Chevron Corp., ConocoPhillips
Co., Total SA and Statoil ASA are currently upgrading heavy oil
in the Orinoco, which currently produce about 600,000 barrels
per day of synthetic crude.

By nationalizing the four projects, the state's oil firm,
Petroleos de Venezuela SA, will have at least 60% stake of each
venture -- from 40%.

Nationalization of the oil sector has started last year when 32
operating contracts were migrated into joint ventures.  Very few
of the international investors refused the move because
Venezuela has the biggest reserve in Latin America.  However,
fresh investments were affected because of fears brought about
by the president's socialist ideas.

The Venezuelan leader tried to downplay those fears and blamed
the media for not putting things in the right perspective.

"I ask you to see the truth.  Don't let yourselves be
terrorized.  Be free," President Chavez said, according to the
Associated Press.  "Evaluate with objectivity and you'll see
that there is no reason on the horizon to feel any kind of
fear."

President Chavez added that his leadership won't follow the
socialism in Europe and Russia, nor will it follow Cuba's
communism.

"The nationalizations will always be limited to strategic areas
of the economy," the Venezuelan leader said, according to AP.  
"So I call on national and international business owners to
come, let's work together for the development ... of a mixed
economic model."

The nationalization of CA Nacional Telefonos de Venezuela and
Electricidad de Caracas was previously announced, along with the
nationalization of the Orinoco projects.

While most oil analysts point to the government's US$37 billion
in reserves to make the nationalization of Orinoco successful,
some hold doubts about the government's capacity to run them.  

The state-oil firm has lost thousands of experienced oil
engineers in 2002-2003 as a result of a massive strike.  New
engineers were being trained in a bid to make the firm more
capable of expanding its control and production.  However,
recent deadly accidents in some of Petroleos de Venezuela's
refineries evidenced the company's shortfall.  

"The government is living in fantasy land if they think they can
kick everyone out and do it itself," an unnamed source was
quoted by AP as saying.

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

                        *    *    *

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


* VENEZUELA: National Assembly Approves Enabling Law for Pres.
--------------------------------------------------------------
Members of Venezuela's National Assembly voted in favor of
granting President Hugo Chavez special powers for 18 months that
would allow their leader to quickly resolve issues involving
changes in the oil, gas and electricity industries.  The special
session, according to published reports, was held in the street.

"We in the National Assembly will not waver in granting
President Chavez an enabling law so he can quickly and urgently
set up the framework for resolving the grave problems we have,"
congressional Vice-President Roberto Hernandez was quoted by the
Dominican Today as saying.

"The law empowering the president to issue directives with legal
status will allow for deepening the Bolivarian revolution and
moving forward to build socialism," chair Cilia Flores was
quoted by El Universal as saying.

Analysts said in reports that the president's increased powers
work in tandem with his political agenda -- that of
strengthening socialism in the region.  

According to opposition leaders quoted by Dominican Today, the
Venezuelan leader is gradually taking the course of Cuban
President Fidel Castro.  In an article written by Teodoro
Petkoff, an opposition politician, he drew parallels among
Venezuela's enabling law, Cuba's communism and Europe's fascism
in the 1930s.

                        *    *    *

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


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

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

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

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

                About Pride International  

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

                        *     *     *

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


* VENEZUELA: Nationalization Won't Disturb Trade with Brazil
------------------------------------------------------------
Luiz Fernando Furlan of the Brazilian Ministry for Development,
Industry and Foreign Trade believes Pres. Hugo Chavez' decision
to nationalize Venezuela's power and telecommunications sector
will not have an adverse effect on its developing trade
relations with Brazil, Efe reports.

"I do not see a big issue in the areas of trade and
investments," Mr. Furlan told reporters in Sao Paulo.

Brazil's state-owned firm Petrobras also assured that its
current operations with Petroleos de Venezuela will not be
disturbed by Pres. Chavez' decision, El Universal relates.

El Universal adds that the Brazil-Venezuela relation has
progressed positively and may even be strengthened due to
Venezuela's inclusion to the Mercosur bloc last July.

                        *    *    *

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


* VENEZUELA: Prioritizes Electric Power Nationalization Law
-----------------------------------------------------------
Venezuela's President Hugo Chavez told Business News Americas
that the drafting of a law to nationalize the electric power
sector is one of the government's priorities.

BNamericas relates that the national assembly has ratified the
bill that allows President Chavez to make reforms on the oil,
gas and electricity sectors for 18 months.

President Chavez told state news agency Agencia Bolivariana de
Noticias that the current electric service law will have to be
reformed.  The reform on the law will need the approval of the
supreme court.

Rafael Ramirez, energy and oil minister and state oil firm
Petroleos de Venezuela president, told BNamericas that the
electric power sector will be nationalized during the first half
of 2007.  Affected firms are:

          -- AES Corp.'s Electricidad de Caracas,
          -- Eleval,
          -- CMS Energy's Seneca, and
          -- AES Corp.'s Genevapca.

                        *    *    *

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


* IDB Grants US$550,000 to Harmonize Caribbean Population Census
----------------------------------------------------------------
The Inter-American Development Bank approved a US$550,000 grant
for the statistics offices in the Caribbean to develop and adopt
a common framework for carrying out population censuses.

The new project, approved by IDB President Luis Alberto Moreno
under the Initiative for the Promotion of Regional Public Goods,
will help develop a common questionnaire, common methodologies
for data collection and validation and a common tool for data
access and dissemination.

The project is a result of a joint effort of the statistics
agencies of the 15 member states of the Caribbean Community or
CARICOM and its secretariat to implement a 2005 decision of the
Council of Ministers of CARICOM that mandates member states to
coordinate their statistical work.

Regional cooperation and harmonization in the area of data
collection, validation and dissemination is considered crucial
to support the implementation of the Caribbean Single Market and
Economy or CSME.  The CSME aims to create a seamless, Caribbean-
wide economic space, liberalizing the movement of goods,
services, capital and skilled professionals across the region.

The project will result in:

   -- the use of a single core questionnaire for population
      censuses in all CARICOM member states;

   -- the standardization of data collection techniques; and

   -- full compatibility of information technology tools to
      facilitate region-wide access to statistical data.

The project will also enhance coordination among the statistics
agencies on topics such as technical innovations for producing
statistics.  It will pave the way for the collection of
population data that is fully comparable across countries,
providing crucial input for the design of region-wide policies
and programs to consolidate the integration process of the CSME.

The executing agency for this project is the CARICOM Secretariat
in Georgetown, Guyana.

It is expected that the common census framework will be in place
for the 2010 round of population censuses that will be held in
all CARICOM member states.

                   Regional Public Goods

This project was selected from the second call for proposals of
the Initiative for the Promotion of Regional Public Goods held
in 2005.  This innovative IDB instrument provides grants to
groups of countries in Latin America and the Caribbean that are
willing to cooperate and conceive a regional solution to a
problem with transnational effects or a problem that they have
in common and that can better be solved collectively.  Under
this initiative countries cooperate to obtain benefits that they
cannot achieve individually or to reach the benefits in a more
efficient way.

At present, the initiative's portfolio consists of 19 approved
operations for a total of US$18.6 million in financing.  The
projects benefit all 26 IDB borrowing member countries, covering
a broad array of sectors, including environment, education,
agriculture and rural development, financial markets, health and
natural disaster prevention.

The IDB is the first multilateral institution to finance
operations that aim at the creation of regional public goods
among its member countries.


* KPMG Names Lorie Beers to Special Situations Advisory Group
-------------------------------------------------------------
KPMG Corporate Finance LLC disclosed that Lorie Beers has joined
the firm's Special Situations Advisory Group as managing
director.  The Special Situations Advisory Group specializes in
assisting distressed middle market companies maximize their
economic recovery.

In her new role, Ms. Beers will lead the division as it
continues to provide out-of-court and in-court M&A, corporate
finance, and restructuring advisory services to underperforming
companies, debtors, creditors, creditors' committees, equity
holders, and other constituents, all on a national basis.

"Establishing an East Coast presence is an important strategic
milestone for the Special Situations Advisory Group as we expand
our national reach," said Ricardo Chance, managing director and
group head, Special Situations Advisory Group in Orange County,
California.  "Lorie is a great fit with our high caliber team of
senior professionals who are well versed in bankruptcy
procedures and capital markets with strong sector knowledge."

Prior to joining KPMG Corporate Finance LLC, Ms. Beers was the
director of business development of Gordian Group LLC where she
was responsible for the firm's client acquisition, marketing
activities, and relationship management.  Ms. Beers previously
held positions as the chief operating officer of STC Associates,
an integrated marketing firm in New York City, and as partner in
the bankruptcy and insolvency practice at Kasowitz, Benson,
Torres and Friedman LLP.  Ms. Beers has nearly 19 years of
experience in the insolvency and restructuring arena covering a
wide range of industry sectors.

"KPMG Corporate Finance LLC offers something most investment
banks do not -- the combination of global reach, industry
specialization, and unique collaborative corporate culture,"
said Ms. Beers.  "I am fortunate to join a well-oiled machine
and will continue to elevate the Special Situations Advisory
Group to the next level."

Ms. Beers developed the Complex Financial Restructuring Program
(formerly the Investment Banking Program) for the American
Bankruptcy Institute and has spoken on panels for the ABI and
the Turnaround Management Association.  In conjunction with her
role as counsel representing various debtors and creditors in
bankruptcy, Ms. Beers has authored and been quoted in various
national and regional publications, including The Wall Street
Journal, Dow Jones, Bloomberg, Corporate Finance Week, The
American Lawyer, as well as Turnarounds and Workouts.

Ms. Beers holds a JD from the University of Pittsburgh and a BA
in Economics from Dickinson College.  She is a member of the ABI
and the TMA.

               About KPMG Corporate Finance LLC

KPMG Corporate Finance LLC is a leading financial adviser
serving domestic and international clients.  KPMG Corporate
Finance offers a full suite of investment banking and advisory
services and the experience and depth of knowledge in global M&A
and project finance to advise clients on mergers and
acquisitions, sales and divestitures, buy-outs, financings,
restructurings, fairness opinions, infrastructure project
finance and other advisory initiatives.  Operating in 51
countries, KPMG's Corporate Finance practice comprises more than
1,800 professionals who are able to meet the needs of KPMG's
firms' clients across the globe.  In 2006, KPMG's Corporate
Finance practice was ranked the number one financial adviser for
completing the highest number of transactions globally (434
deals totaling US$48.9 billion), according to Thomson
Financial's global M&A league tables, and was named global
financial adviser of the year by Infrastructure Journal.


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


                         ***********


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

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

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

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