TCRLA_Public/070208.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

          Thursday, February 8, 2007, Vol. 8, Issue 28

                          Headlines

A R G E N T I N A

ACXIOM CORP: Frank Cotroneo Resigns as Chief Financial Officer
BEST QUALITY: Seeks for Court Approval to Enter Bankruptcy
CMS ENERGY: Sells Assets in Middle East, Africa, & India
CMS ENERGY: Abu Dhabi Deal Prompts Fitch's Positive Watch
COOPERATIVA PRODUCTORES: Reorganization Proceeding Concluded

DIRECTAMOINT SA: Asks for Court Approval to Reorganize Business
EXIM BOULEVARD: Seeks for Court Approval to Reorganize Business
GYPSIES SA: Deadline for Claims Verification Is on March 19
UNIVERSAL CORP: Declares Quarterly Dividends

B E R M U D A

DIGICEL: Inks 3-Year Partnership Agreement with Vodafone
SEA CONTAINERS: Trustee Opposes Houlihan's Employment as Advisor
SEA CONTAINERS: Hires Richards Butler as Foreign Counsel

B O L I V I A

* BOLIVIA: Carlos Villegas to Attend to Protesters' Demands
* BOLIVIA: Entel Has Not Paid BOB200 Million, Says Tax Agency

B R A Z I L

BANCO DO BRASIL: Inks Financial Services Pact with Lojas Salfer
BANCO NACIONAL: Grants BRL73.3MM Financing to Ecopatio Logistica
BRASIL TELECOM: Sells 21,000 Handyphone System Handsets in 2006
COMPANHIA DE BEBIDAS: Board OKs BRL1 Bil. Share Buyback Program
COMPANHIA FORCA: Posts 5.9% Sales Increase Last Year

COMPANHIA SIDERURGICA: Likely Acquisition Target
FIDELITY NATIONAL: Reports Strong Fourth Quarter 2006 Results
FIDELITY NATIONAL: Declares US$0.05 Per Share Quarterly Dividend
LAZARD LTD: Declares US$0.09 Per Share Quarterly Dividend
PETROLEO BRASILEIRO: Posts Preliminary Manati Production Result

PETROLEO BRASILEIRO: Unit Selling Biodiesel in All Outlets
TELE NORTE: Launching IPTV Services in First Semester of 2007
TIMKEN CO: Declares US$0.16 Per Share Quarterly Dividend

C A Y M A N   I S L A N D S

ABSCDO-1 WAREHOUSE: Last Day to File Proofs of Claim Is Feb. 22
BALLYROCK CDO: Creditors Have Until Feb. 22 to File Claims
COMMONFUND INSTITUTIONAL: Claims Filing Deadline Is on Feb. 22
FREMONT CI-1: Last Day for Proofs of Claim Filing Is on Feb. 22
FREMONT CI-2: Deadline for Proofs of Claim Filing Is on Feb. 22

KEYNES FUND: Deadline for Proofs of Claim Filing Is on Feb. 22
KEYNES LEVERAGED: Proofs of Claim Filing Deadline Is on Feb. 22
KEYNES LEVERAGED MASTER: Proofs of Claim Filing Is Until Feb. 22
KEYNES MASTER: Last Day for Proofs of Claim Filing Is on Feb. 22
MINCS-CUMBERLAND: Creditors Must File Proofs of Claim by Feb. 22

SEQUILS-CUMBERLAND (HOLDINGS): Claims Filing Is Until Feb. 22
SEQUILS-CUMBERLAND: Last Day for Claims Filing Is on Feb. 22
SPROUT GROWTH: Creditors Must File Proofs of Claim by Feb. 22
ZAIS MATRIX: Creditors Must Submit Proofs of Claim by Feb. 22

C H I L E

CONSTELLATION BRANDS: To Purchase SVEDKA Vodka for US$384 Mil.
CONSTELLATION BRANDS: S&P Says SVEDKA Buy Won't Affect Ratings

C O L O M B I A

BANCO DEL CAFE: Davivienda Subscribes to COP399 Bil. in Equity
BRIGHTPOINT: Earns US$9.7 Mil. in Quarter Ended Dec. 31, 2006
GERDAU SA: Colombian Antitrust Agency Allows Bid for Acerias Paz
MILLICOM INTERNATIONAL: Colombian Unit Selling 17.6% Stake

* COLOMBIA: Superindustria Approves Ecogas Sale

C O S T A   R I C A

CLOROX CO: Declares US$0.31 Per Share Quarterly Dividend
US AIRWAYS: Pilots Picket to Support Single Fair Contract

* COSTA RICA: ICE Unions to Stage Protests Against CAFTA-DR

C U B A

* CUBA: New Bill in US Congress Seeking to Ease Ban on Nation

D O M I N I C A N   R E P U B L I C

AFFILIATED COMP: Gets IT Outsourcing Contract from Safety-Kleen
AFFILIATED COMPUTER: S&P Revises B+ Rating Outloook to Positive

E C U A D O R

DOLE FOOD: Unit Signs Leafy Greens Marketing Agreement
PETROECUADOR: Setting Up Oil Refinery & Petrochemicals Project
PETROLEOS DE VENEZUELA: Building Oil Refinery with Petroecuador
PETROLEOS DE VENEZUELA: 1st Diesel Shipment To Arrive on Feb. 22

* ECUADOR: Former Occidental Fields Declines Since Take Over

G U A T E M A L A

SAFETY-KLEEN: Awards IT Outsourcing Contract to ACS
TECO ENERGY: Moody's Reviews Low B Ratings & May Upgrade
TECO ENERGY: S&P Says Likely Transport Sale Won't Affect Ratings

H A I T I

* HAITI: Will Receive US$20 Million from US to Create Jobs

H O N D U R A S

* HONDURAS: President Inaugurates Bagasse-Fired Generation Plant

M E X I C O

ADVANCED MARKETING: Wells Fargo Won't Object to PGW Payment
ADVANCED MARKETING: Wants to Employ Capstone as Fin'l Advisor
BALLY TOTAL: Launching Health Club in Alexandria This Year
BEARINGPOINT INC: S&P Withdraws Ratings & Removes CreditWatch
CELESTICA INC: 2,000 Mexican Workers Loses Jobs

HOME PRODUCTS: Court Approves Greystone & Branford as Auctioneer
HOME PRODUCTS: Court Approves Sale of Assets Through Auction
GRUPO IUSACELL: Court Sets Fairness Hearing on Feb. 19
LIBBEY INC: Declares US$0.025 Per Share Quarterly Dividend
NORTEL NETWORKS: Peter Currie to Step Down as EVP & CFO

VITRO SA: Nippon Sheet Glass Unit Sues Company

N I C A R A G U A

* NICARAGUA: Complains of Ecuador-European Union Banana Dispute

P A N A M A

* PANAMA: Asep Orders Cable & Wireless Rates Reduction

P E R U

* PERU: May Start Bilateral Free Trade Accord Talks in February
* PERU: To Exclude Official Reserves from Amazon Oil Concessions

P U E R T O   R I C O

ADELPHIA COMMS: Inks Pact Resolving Wilmington Trust's Claims
CENTENNIAL COMM: Amends Credit Agreement to Lower Borrowing Cost
MERIDIAN AUTOMOTIVE: Committee's Suit Against Lenders Dismissed
MERIDIAN AUTO: Wants Plastech Compelled to Repay US$1.25 Million
SOLECTRON: Germany Plant Receives ISO 13485:2003 Certification

U R U G U A Y

* URUGUAY: Pulp Mill Dispute Results to US$800-Million Loss

V E N E Z U E L A

AMERICAN COMMERCIAL: Posts US$265.9MM Revenues for 4th Qtr. 2005
ARVINMERITOR INC: Prices US$175MM Conv. Senior Unsecured Notes
ARVINMERITOR: Fitch Rates US$175-Mil. Convertible Debt at BB-
PETROLEOS DE VENEZUELA: Borrows US$1 Bln from Syndicated Lenders

* IDB Provides US$800,000 Grant to Promote Regional Public Goods
* KPMG Names Phil Rohrbaugh Industries & Marketing Vice Chair


                         - - - - -


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


ACXIOM CORP: Frank Cotroneo Resigns as Chief Financial Officer
--------------------------------------------------------------
Acxiom Corp. disclosed that Frank Cotroneo has resigned from his
position as Chief Financial Officer.  Mr. Cotroneo's resignation
is unrelated to his performance, and no issues have been raised
regarding the accuracy or integrity of Acxiom's financial
statements.

"Frank provided solid financial leadership on all fronts," said
Charles Morgan, Acxiom Chairman and Company Leader.  "He is a
very talented professional, and he helped us immensely during a
challenging time.  We all wish him well as he pursues other
endeavors."

Mr. Cotroneo said, "I have enjoyed the opportunity to serve on
the leadership team at Acxiom and look forward to watching its
continued success."

The company also announced that Rodger Kline will serve as an
interim CFO while it conducts a search for a new CFO.  Mr.
Kline, a company veteran, is Chief Administrative Leader, a
member of the Acxiom Board of Directors and previously served as
Chief Financial Officer.

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.


BEST QUALITY: Seeks for Court Approval to Enter Bankruptcy
----------------------------------------------------------
Court No. 14 in Buenos Aires is studying the merits of Best
Quality SA's petition to enter bankruptcy after it has stopped
paying its obligations on Oct. 31, 2006.

Clerk No. 27 assists the court in the proceeding.

The Debtor can be reached at:

          Best Quality SA
          Avenida Presidente Julio A. Roca 546
          Buenos Aires, Argentina


CMS ENERGY: Sells Assets in Middle East, Africa, & India
--------------------------------------------------------
CMS Energy is selling its ownership interests in businesses in
the Middle East, Africa, and India, accelerating its financial
recovery and allowing an increased focus on investments in its
Michigan utility, Consumers Energy.

CMS Energy said it has reached an agreement to sell its
subsidiary, CMS Generation Company, to the Abu Dhabi National
Energy Company aka TAQA for US$900 million.  Subject to
necessary consents, CMS Energy expects to close the sale in the
middle of 2007.  Proceeds from the sale will be used to retire
part of CMS Energy's parent company debt and for general
corporate purposes, including investments in Consumers Energy.

CMS Generation and TAQA's majority owner, the Abu Dhabi Water
and Electricity Authority aka ADWEA, are long-time partners.  
CMS Generation, in conjunction with ADWEA, developed,
constructed, and operates the Al Taweelah A2 facility and in
conjunction with ADWEA and International Power developed,
constructed, and operates the Shuweihat S1 facility.  The two
major power and desalination projects in the United Arab
Emirates are part of the sale.

The other businesses included in the sale are CMS Energy's
ownership interests in the Jorf Lasfar Energy Company in
Morocco, the Jubail Energy Company in the Kingdom of Saudi
Arabia, the Takoradi International Company in Ghana, and the ST
CMS Company in Neyveli, India.  The sale doesn't include the
company's non-utility North American electric generating plants.

"This sale will accelerate our financial recovery by
strengthening our balance sheet and credit ratios," said David
Joos, CMS Energy's president and chief executive officer.  
"Although in the short run we will lose the earnings from the
businesses sold, debt reduction and increased investment in the
utility will support future earnings growth and improve
reliability and service for Consumers Energy customers."

JPMorgan provided CMS Energy with strategic advice regarding
this transaction.

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

                        *    *    *

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


CMS ENERGY: Abu Dhabi Deal Prompts Fitch's Positive Watch
---------------------------------------------------------
Fitch has placed the ratings of CMS Energy Corp. and its
electric and gas subsidiary, Consumers Energy Co. on Rating
Watch Positive.  The rating action follows the announcement that
CMS has reached an agreement to sell the international assets of
its subsidiary CMS Generation Co. to Abu Dhabi National Energy
Company for US$900 million, including the assumption of US$104
million of debt.  CMS Generation Co. has ownership interests in
businesses in the Middle East, Africa and India.  Approximately
US$7.1 billion of CMS and Consumers debt is affected by the
rating action.

The ratings placed on Rating Watch Positive:

CMS

   -- Issuer Default Rating (IDR) 'B+';
   -- Senior secured bank loan 'BB+/RR1';
   -- Senior unsecured debt 'BB-/RR3';
   -- Preferred stock 'B-/RR6';

Consumers Energy

   -- IDR 'BB-';
   -- Senior secured debt 'BBB-';
   -- Senior secured second lien bank credit facility 'BB+';
   -- Senior unsecured debt 'BB';
   -- Preferred stock 'BB-'.

CMS Energy Trust I

   -- Preferred stock 'B-/RR6'.

Consumers Energy Financing I

   -- Preferred stock 'BB-'.

The businesses being sold include the Al Taweelah A2 and the
Shuweihat S1 facilities in the United Arab Emirates, the Jorf
Lasfar Energy Company in Morocco, the Jubail Energy Company in
Saudi Arabia, the Takoradi International Company in Ghana, and
the ST CMS Company in Neyveli, India.  The sale does not include
CMS' non-utility electric generating plants in North America and
previously announced asset sales.  Assuming all necessary
consents are received, the sale is expected to be completed in
the middle of 2007.  Proceeds from the transaction will be to
retire US$550 million of CMS parent company debt and for general
corporate purposes, including a US$350 million investment in
Consumers.

Fitch views the sale, in conjunction with the recent sale of
several assets in Latin America, as favorable for credit
quality.  While CMS will no longer benefit from the cash
distributions and earnings from the assets, approximately US$114
million annually, consolidated business risk would be
significantly lowered as a result of the transaction.  
Additionally CMS' credit metrics and capital structure are
projected by Fitch to improve over the longer term following the
paydown of parent company debt with a portion of the proceeds,
as well as the absence of related CMS Generation Co.
obligations, parent overhead and interest expense.  Due to the
expected improvement at CMS, the ratings at Consumers will be
more reflective of its standalone credit profile and may result
in a multiple notch upgrade that could bring its senior
unsecured rating to the investment grade category.  The Rating
Watch will remain in effect over the next several weeks
following an update meeting with management and a comprehensive
review of the company.

CMS is a utility holding company whose primary subsidiary is
Consumers, which provides natural gas and electricity to nearly
6.5 million customers in Michigan.  CMS also has operations in
natural gas pipeline systems and independent power generation
and has operations in Argentina.


COOPERATIVA PRODUCTORES: Reorganization Proceeding Concluded
------------------------------------------------------------
Cooperativa Productores Unidos La Lolilla's reorganization
proceeding has ended.  Data published by Infobae on its Web site
indicated that the process was concluded after a court on
Rosario, Santa Fe approved the debt agreement signed between the
company and its creditors.


DIRECTAMOINT SA: Asks for Court Approval to Reorganize Business
---------------------------------------------------------------
Court No. 25 in Buenos Aires is studying the merits of
Directamoint SA's petition to reorganize its business after it
stopped paying its obligations on Sept. 20, 2006.

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

Clerk No. 49 assists the court in the proceeding.

The debtor can be reached at:

          Directamoint SA
          San Martin 522
          Buenos Aires, Argentina


EXIM BOULEVARD: Seeks for Court Approval to Reorganize Business
---------------------------------------------------------------
Court No. 7 in Buenos Aires is studying the merits of Exim
Boulevard Instrumentos SA's petition to reorganize its business
after it stopped paying its obligations on Sept. 23, 2005.

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

Clerk No. 14 assists the court in the proceeding.

The debtor can be reached at:

          Exim Boulevard Instrumentos SA
          Bacacay 1667
          Buenos Aires, Argentina


GYPSIES SA: Deadline for Claims Verification Is on March 19
-----------------------------------------------------------
Miguel Angel Sanchez, the court-appointed trustee for Gypsies
SA's reorganization proceeding, will verify creditors' proofs of
claim until March 19, 2007.

Mr. Sanchez will present the validated claims in court as
individual reports on May 7, 2007.  A court in San Martin,
Mendoza will determine if the verified claims are admissible,
taking into account the trustee's opinion and the objections and
challenges raised by Gypsies SA 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 Gypsies SA's
accounting and banking records will follow on June 25, 2007.

The debtor can be reached at:

          Gypsies SA
          Lavalle 858 Rivadavia
          Mendoza, Argentina

The trustee can be reached at:

          Miguel Angel Sanchez
          Almirante Brown 355, San Martin
          Mendoza, Argentina


UNIVERSAL CORP: Declares Quarterly Dividends
--------------------------------------------
Allen B. King, Chairman and Chief Executive Officer of Universal
Corp. disclosed that the company's Board of Directors has
declared a quarterly dividend of US$0.44 per share on the common
shares of the company, payable May 14, 2007, to common
shareholders of record at the close of business on
April 9, 2007.

In addition, the Board of Directors declared a quarterly
dividend of US$16.875 per share on the Series B 6.75%
Convertible Perpetual Preferred Stock, payable March 15, 2007,
to shareholders of record as of 5:00 p.m. Eastern Time on
March 1, 2007.

Based in Richmond, Virginia, Universal Corp., (NYSE:UVV) --
http://www.universalcorp.com/-- has operations in tobacco and
agri-products.  The company, through its subsidiaries, is one of
two leading independent tobacco merchants in the world.
Universal Corp.'s gross revenues for the fiscal year that ended
on March 31, 2006, were approximately US$3.5 billion, which
included US$1.4 billion related to operations that were sold on
Sept. 1, 2006.

Universal Corp. has operations in India, Brazil, Argentina, the
United States, Guatemala, Brazil, the Netherlands, Belgium and
other countries in Europe.

In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. Consumer Products, Beverage, Toy,
Natural Product Processors, Packaged Food Processors and
Agricultural Cooperative sectors, the rating agency confirmed
its Ba1 Corporate Family Rating for Universal Corporation, and
downgraded its Ba1 rating to Ba2 on the company's US$563 million
MTN.  Moody's assigned an LGD5 rating to the debt obligation,
suggesting noteholders will experience a 73% loss in the event
of a default.




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


DIGICEL: Inks 3-Year Partnership Agreement with Vodafone
--------------------------------------------------------
Vodafone and Digicel have entered into a partnership agreement
to offer new roaming capabilities across Digicel's markets in
the Caribbean and Bermuda and Vodafone's global network.  The
agreement also extends to Digicel's sister operation in Samoa.

In addition, under the terms of the agreement Vodafone and
Digicel will become preferred roaming partners offering
customers a seamless world-class mobile experience whilst they
travel on each other's network.

Both Vodafone and Digicel will market co-branded roaming
capabilities, offering pre-paid and post-paid customers easy
access to their voice mail and customer service using their
standard short codes, as well as better value for both voice and
data services.  With some variation from market to market,
initial services available will include Voice and GPRS Roaming
services with plans in place to shortly include Top Up
offerings.

For Digicel, which also has roaming agreements with 245 partners
in 130 countries around the world, the partnership allows the
company to expand the number of countries where it offers pre-
paid roaming.

The companies will aim to work together to jointly develop
innovative products and services as well as purchase handsets,
creating cost benefits, greater value and more solutions for
customers.  Vodafone and Digicel will co-operate in marketing
and delivering mobile services to multi-national corporate
customers.

Matthias Jungemann, Partner Markets Director at Vodafone, said,
"Our agreement with Digicel means that Vodafone customers can
now access their services while travelling across the Caribbean.  
No other mobile operator can offer the kind of global footprint
Vodafone now has for easy to use, great value roaming services.  
Including Digicel, Vodafone's branded roaming services will be
now available in 81 countries.

"Given Digicel's footprint in the region, the company was a
clear choice as our preferred roaming partner for the Caribbean.  
We look forward to extending the benefits of this partnership,
not only in delivering our innovative roaming capabilities, but
also working together in how we can purchase smarter and how we
can deliver a superior mobile service for multi-national
corporate customers."

CEO of Digicel Group, Colm Delves, added, "Today is a very
significant day for both Digicel and Vodafone and the first step
of an exciting relationship.  Our customers in the Caribbean and
Bermuda will now have access to a wider spectrum of products and
services especially when they travel abroad.  With this
partnership, we are once again bringing our markets to another
level in terms of breadth and depth of service offering."

Mr.. Delves added, "Co-branding will further boost the brand
reach of both partners globally.  We are bringing together the
Digicel and Vodafone names, which in turn will increase roaming
traffic by gaining access to more international travellers."

                      About Vodafone

Vodafone is a leading international mobile telecommunications
group with equity interests in 25 countries across five
continents with 198.6 million proportionate customers worldwide
as of Dec. 31, 2006, as well as 34 partner networks.

                     About Digicel Ltd.

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

                        *    *    *

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

                        *    *    *

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


SEA CONTAINERS: Trustee Opposes Houlihan's Employment as Advisor
----------------------------------------------------------------
Kelly Beaudin Stapleton, United States Trustee for Region 3,
asks the U.S. Bankruptcy for District of Delaware to deny the
request of the Official Committee of Unsecured Creditors in Sea
Containers, Ltd. and its debtor-affiliates' chapter 11 case for
authority to employ Houlihan Lokey Howard & Zukin Capital, Inc.
as financial advisor, nunc pro tunc to Oct. 26, 2006.

The U.S. Trustee asserts that the proposed compensation for the
retention of Houlihan Lokey Howard & Zukin Capital, Inc. is not
reasonable.

As reported in the Troubled Company Reporter on Jan. 24, 2007,
as compensation for the firm's services, the Debtors will pay
Houlihan Lokey a fee of US$150,000 per month beginning
Oct. 26, 2006, and after that on the 26th day of each subsequent
month until termination or expiration of the agreement.  Upon
consummation of any Transaction, Houlihan Lokey will be paid
in cash an additional fee of US$2,100,000, offset by US$50,000
of each Monthly Fee, if any, earned and paid on or after
March 26, 2007.  Houlihan Lokey will also seek reimbursement for
reasonable out-of-pocket expenses incurred in connection with
its engagement.

However, the U.S. Trustee proposes that the deferred fee, which
is the sum of US$2,100,000 less a credit of US$50,000 per month
commencing March 26, 2007, be subjected to review for
reasonableness.

In addition, the definition of transaction is ambiguous under
the facts and circumstances of the Debtors' Chapter 11 case.  
The Debtors have more than 100 non-debtor affiliates and
subsidiaries and it is possible that substantially all the
assets of one or more of these affiliates and subsidiaries will
be sold through the course of the bankruptcy proceeding.  The
U.S. Trustee seeks clarification whether or not Houlihan Lokey
will claim more than one Deferred Fee since there may be
multiple Transactions during the course of the Debtors' Chapter
11 cases.

The U.S. Trustee also points out that it is inappropriate for a
professional retention application to purport to limit the
potential liability of a professional.

                     About Sea Containers

Headquartered in Hamilton, Bermuda, Sea Containers Ltd. (NYSE:
SCRA, SCRB) -- http://www.seacontainers.com/-- provides  
passenger and freight transport and marine container leasing.  
Registered in Bermuda, the company has regional operating
offices in London, Genoa, New York, Rio de Janeiro, Sydney, and
Singapore.  The company is owned almost entirely by United
States shareholders and its primary listing is on the New York
Stock Exchange (SCRA and SCRB) since 1974.  On Oct. 3, 2006, the
company's common shares and senior notes were suspended from
trading on the NYSE and NYSE Arca after the company's failure to
file its 2005 annual report on Form 10-K and its quarterly
reports on Form 10-Q during 2006 with the U.S. Securities and
Exchange Commission.

Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland.  It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.

Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor
represents the Debtors in their restructuring efforts.  When the
Debtors filed for protection from their creditors, they reported
US$1.7 billion in total assets and US$1.6 billion in total
debts.  (Sea Containers Bankruptcy News, Issue No. 10;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)

The Debtors' exclusive period to file a chapter 11 plan expires
on June 12, 2007.


SEA CONTAINERS: Hires Richards Butler as Foreign Counsel
--------------------------------------------------------
Sea Containers Ltd. and its debtor-affiliates obtained
permission from the U.S. Bankruptcy Court for the District of
Delaware to employ Richards Butler LLP as special counsel for
certain foreign legal matters, nunc pro tunc to Oct. 15, 2006.

As reported in the Troubled Company Reporter on Dec. 6, 2006,
Richards Butler has served as the Debtors' outside counsel on
legal matters in the United Kingdom and France as well as
matters involving their interests in their non-debtor subsidiary
Great North Eastern Railway, Ltd., since 1987, related Edwin S.
Hetherington, vice president, general counsel, and secretary of
Sea Containers Ltd.

As the Debtors' Special Foreign Counsel, Richards Butler is
expected to advise and represent the Debtors with respect to
foreign legal matters as well as other non-bankruptcy related
matters, which may arise in the Debtors' Chapter 11 cases in the
ordinary course of business.

Richards Butler's services will be paid in accordance with its
customary hourly rates:

         Professional                  Hourly Rate
         ------------                  -----------
         Partners                    US$522 - $997
         Associates                  US$360 - $740
         Paraprofessionals           US$295 - $360

The firm will also be reimbursed for necessary out-of-pocket
expenses.

Mr. Hetherington informed the Court that Richards Butler has
received a replenishing prepetition retainer, with a remaining
balance of US$150,461, for providing the Debtors with
representation on certain of the foreign legal matters prior to
the Petition Date.  In addition, Richards Butler also received
US$4,412,000 from the Debtors within one year prior to the
Petition Date for services rendered to certain Foreign Legal
Matters.

Jonathan Yorke, Esq., a member of Richards Butler LLP, assures
the Court that his firm does not hold or represent any interests
adverse to the Debtors, or to their estates in matters upon
which his firm is to be engaged.

            Reed Smith and Richards Butler Merge

Reed Smith, a United States-based, top-25 international law firm
with nearly 1100 lawyers, and Richards Butler, a London-based,
top-30 UK and international law firm with more than 250 lawyers,
announced in 2006 that both partnerships have approved the
merger of the two firms.  The merger creates one of the 20
largest law firms in the world, with offices on three
continents.

The firms began to integrate their operations in 2006, closing
in the legal combination of the firms on January 1, 2007.

The merged firm will be known as Reed Smith, although there will
be variations in some European markets, including the UK, where
the name Reed Smith Richards Butler will be used.

The firm will be led by Gregory Jordan, Reed Smith's managing
partner, as Firmwide Managing Partner.  Roger Parker, Richards
Butler's managing partner, will join Reed Smith's Senior
Management Team and become European Managing Partner.  Tim
Foster, current managing partner of Reed Smith's UK offices will
continue in that role overseeing the greatly expanded office of
Reed Smith Richards Butler.  Paul Johnston, chairman of Richards
Butler, will also join Reed Smith's Ian Fagelson as European
representatives on the combined firm's Executive Committee.

                    About Sea Containers

Headquartered in Hamilton, Bermuda, Sea Containers Ltd. (NYSE:
SCRA, SCRB) -- http://www.seacontainers.com/-- provides  
passenger and freight transport and marine container leasing.  
Registered in Bermuda, the company has regional operating
offices in London, Genoa, New York, Rio de Janeiro, Sydney, and
Singapore.  The company is owned almost entirely by United
States shareholders and its primary listing is on the New York
Stock Exchange (SCRA and SCRB) since 1974.  On Oct. 3, 2006, the
company's common shares and senior notes were suspended from
trading on the NYSE and NYSE Arca after the company's failure to
file its 2005 annual report on Form 10-K and its quarterly
reports on Form 10-Q during 2006 with the U.S. Securities and
Exchange Commission.

Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland.  It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.

Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor
represents the Debtors in their restructuring efforts.  When the
Debtors filed for protection from their creditors, they reported
US$1.7 billion in total assets and US$1.6 billion in total
debts.  (Sea Containers Bankruptcy News, Issue No. 10;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)

The Debtors' exclusive period to file a chapter 11 plan expires
on June 12, 2007.




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


* BOLIVIA: Carlos Villegas to Attend to Protesters' Demands
-----------------------------------------------------------
Alex Contreras, the Bolivian government's spokesperson, told
Prensa Latina that hydrocarbons minister Carlos Villegas would
attend to protesters' demands and would look for a possible
solution.

As reported in the Troubled Company Reporter-Latin America on
Feb. 7, 2007, the Bolivian soldiers and police have driven away
protesters from a natural gas installation using tear gas and
rubber bullets.  Strikers had forced the closing of a key
pipeline serving several cities.  They took over the Transredes
pumping station near Camiri.  Protesters demanded for more state
control over oil and gas firms, saying that nationalization has
not gone far enough.  The strikers blocked the only road that
connects Bolivia with Argentina and Paraguay, which could
disrupt fuel deliveries to Santa Cruz.  They were against
President Evo Morales' decision to renegotiate deals with
foreign oil companies, instead of taking back control of the
operations.  

Prensa Latina relates that the government had called for
dialogue to deal with the demands of the citizens.

Mr. Contreras told Prensa Latina that authorities of the
ministry of hydrocarbons had organized a meeting in Yacuiba with
representatives of the neighboring regions of Camiri to explain
the government plan of changes in state-run Yacimientos
Petroliferos Fiscales Bolivianos.

The protesters' leaders turned down the invitation, demanding
that the meeting be held in Camiri, Prensa Latina states.

                        *    *    *

Fitch Ratings assigned these ratings on Bolivia:

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


* BOLIVIA: Entel Has Not Paid BOB200 Million, Says Tax Agency
-------------------------------------------------------------
Bolivia's tax agency Servicio de Impuestos Nacionales has
accused Telecom Italia's local unit, Entel, of BOB200-million
tax evasion, newswire EFE reports.

Servicio de Impuestos told Business News Americas that Entel
failed to report a remittance from Italy in its 2005 tax report.

Entel denied Servicio de Impuestos' accusation.  The interim
government tax regulator Rafael Vergara Sandoval will mediate
the case, BNamericas notes, citing Marlene Ardaya, the tax
agency's chief regulator.

BNamericas relates that the tax agency made the accusations
after Bolivian President Evo Morales disclosed plans of
nationalizing Entel.

Telecom Italia, which controls Entel, told BNamericas that if
the nationalization proceeds, the Bolivian government would have
to pay it US$170 million for its 50.9% stake in Entel.  

Telecom Italia paid US$610 million for its stake in Entel in
1996, BNamericas states.

                        *    *    *

Fitch Ratings assigned these ratings on Bolivia:

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




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


BANCO DO BRASIL: Inks Financial Services Pact with Lojas Salfer
---------------------------------------------------------------
Banco do Brasil said in a statement that it has entered a
financial services partnership with regional retailer Lojas
Salfer.

Lojas Salfer operates 80 stores in Santa Catarina and Parana.

Banco do Brasil commercial director Eduardo Martins told
Business News Americas that Banco do Brasil will offer consumer
financing and personal loans to Lojas Salfer clients.  The bank
will also offer payroll loans to Lojas Salfer workers.

Banco do Brasil is considering launching a private label credit
card, savings bonds and life, home and personal injury insurance
products through the partnership, BNamericas says, citing Mr.
Martins.  

Mr. Martins told BNamericas, "We expect revenues from the
agreement of BRL500 million in the first five years, not
including a credit card.  Revenues the first years will be
around BRL80 million."

According to BNamericas, Banco do Brasil will grant this year a
minimum of BRL1.00 billion in loans through its 16 financial
services accords.

Banco do Brasil first signed up with regional retailer Lojas
Maia in April 2006.  It has since partnered with Brasil Telecom,
Telefonica, car rental firm Localiza and toy store company Ri
Happy, BNamericas notes.

The report says that Banco do Brasil operates a private label
credit card venture with airline Gol and card issuer MasterCard.

Those agreements formed an integral part of Banco do Brasil's
strategy to expand retail operations and services to non-account
holders, BNamericas says, citing Antonio Francisco de Lima Neto,
the bank's chief executive officer.

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

                        *    *    *

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


BANCO NACIONAL: Grants BRL73.3MM Financing to Ecopatio Logistica
----------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social aka BNDES
approved a BRL73.3 million financing to Ecopatio Logistica Ltda,
a concessionaire which operates a 700-space parking lot 700 in
Cubatao. The resources will be directed to the expansion of
support facilities, implementation of operation automation
system, creation of 3,500 paved spaces, lighting system, vehicle
entrance and exit gate, and improvement of roadway accesses.

The main merit of the project is to customize and ordering the
access to Port of Santos and logistic chain of the roadway
transportation. Nowadays, the parking lot operates precariously,
with non-paved spaces. The investment immediate effect will be
the reduction of the export cost and the so-called Brazil cost.

The operation also has positive social impacts, since Ecopatio
will guarantee social services to truck drivers, besides
reducing the degradation of nearby areas surrounding the Port of
Santos.  The enterprise is a Special Purpose Company and
controlled by Primav EcoRodovias, which is a holding company of
the roadway concessionaires, Ecovias dos Imigrantes, Ecovia
Caminho do Mar and Ecosul.

The project forecasts the construction of toilets and cloakrooms
for drivers, leisure and resting areas, an operating control
center which is interlinked with the Dock Company of the State
of Sao Paulo aka Codesp and the terminals which exist in the
port, trade and service center, oil station and the expansion of
the Support Post to the Workers on Road.

The enterprise's strategy is based on the absorption of part of
the truck flow whose destination is the Port of Santos, in order
to improve the port efficiency and enable the increase of heavy
vehicle flow in the Ecovias dos Imigrantes concessionaire, which
contributes most to the Group's result generation.

Currently, Port of Santos operates over 70 million tons of
diverse loads per year.  The average operation of vehicles
towards the Port amounts roughly 6,000 trucks/day, and it can
reach amounts over 12,000 trucks/day.  Trains correspond, in
average, to the transportation of only 14% of the loads operated
in the port.

Santos's export share is very important.  Out of Brazil's total
exports in 2005 (US$118.3 billion), Santos contributed with
27.7% (US$32.8 billion).

Ecopatio's project will eliminate the traffic jam in the Santos
City's region that is nearby the Port.  Currently, bulk
terminals are primarily responsible for the operation of over 11
million tons/year.  Most of these terminals lie on the right
margin and are confounded with Santos City.  This contributes to
the increase of the surrounding traffic jam, especially, in the
season of harvest transportation with load and unload
operations.  The opening of 3,500 new spaces in the parking lot
will relieve the streets that are near the Port, in Santos,
improving the urban structure of the Cities of Santos and
Guaruja and the region's life quality.

Ecopatio Logistica Ltda. has been operating Cubatao's parking
lot for trucks since May 2006.  The enterprise is controlled by
EcoRodovias, which has been preparing itself for going public in
the new market of the Sao Paulo Stock Exchange or Bovespa,
having adopted the corporate governance stocks, publication of
quarterly results, constitution of capital exclusively by common
stocks, creation of the board of Affairs with Investors and the
availability of economic and financial data on enterprises'
websites.

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

                        *    *    *

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

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

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


BRASIL TELECOM: Sells 21,000 Handyphone System Handsets in 2006
---------------------------------------------------------------
Brasil Telecom said in a statement that it has sold 21,000 of
its personal handyphone system handsets last year, after
launching the Unico service in August.

Brasil Telecom told Business News Americas that it had 10,000
users for the service by the start of December 2006.  The figure
increased to 21,000 by the end of the month by introducing the
cheaper V196 model the US mobile handset manufacturer Motorola
created.

Brasil Telecom product and services director Eugenio Pimenta
said in a statement, "Brasil Telecom surpassed its year-end
target of 20,000."

Mr. Pimenta told BNamericas that the handset has the
characteristics of a cell phone but charges fixed line rates and
can only be used within 100 meters of an antenna.  The service
lets clients secure savings of up to 82% compared with regular
mobile telephony.

Brasil Telecom estimated that 30% of calls from mobile to fixed
lines are from homes.  The company seeks to control that
traffic, BNamericas says, citing Mr. Pimenta.

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

                        *    *    *

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

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


COMPANHIA DE BEBIDAS: Board OKs BRL1 Bil. Share Buyback Program
---------------------------------------------------------------
Companhia de Bebidas das Americas aka Ambev's board of directors
approved a share buyback program up to the aggregate amount of
BRL1 billion, for treasury stock purposes and cancellation and
subsequent disposition, during the next 360 days, due on
Jan. 31, 2008.

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

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

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

                        *    *    *

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


COMPANHIA FORCA: Posts 5.9% Sales Increase Last Year
----------------------------------------------------
Power firm Companhia Forca e Luz Cataguazes-Leopoldina's sales
increased 5.9% to 6,966 gigawatt hours in 2006, compared with
2005, Business News Americas reports.

Companhia Forca said in a statement that sales to industrial
customers grew 6.9% to 3,636 gigawatt hours in 2006, from 2005.

Sales to regulated residential clients increased 5.3% to 1,931
gigawatt hours in 2006.  Meanwhile, sales to commercial
customers rose 5.9% to 993 gigawatt hours, Companhia Forca told
BNamericas.

                        *    *    *

As reported by Troubled Company Reporter on Nov. 9, 2005,
Standard & Poor's Ratings Services assigned its 'B+' foreign and
local currency corporate credit rating to Brazil-based electric
distribution company Companhia Forca e Luz Cataguazes-Leopoldina
in its global scale.  The company's rating in Brazil national
scale is 'brBBB+'.  S&P said the outlook is negative.


COMPANHIA SIDERURGICA: Likely Acquisition Target
------------------------------------------------
After losing Corus plc to Tata Steel in a bidding war that
lasted four months, Brazilian steelmaker Companhia Siderurgica
Nacional has become a potential buyout target in an industry
where many large players are buying or merging with competitors
to promote greater efficiency and capture a bigger market share.

Industry analysts said in reports that Companhia Siderurgica's
attraction lies on its self-sufficiency in iron ore, an
important factor in the steel industry.  Having only one
controlling group also makes the company more vulnerable,
experts said.

                   Expansion Possibility

Meanwhile, Companhia Siderurgica is expected to scout for other
companies to buy.  However, experts believe that there aren't
that many attractive companies to acquire.

"I don't think there is time for CSN to make the same move as
Gerdau," Adriano Blanaru, head of analysis with brokerage Link
Corretora, was quoted by Business News Americas as saying.  "The
consolidation trend in the steel sector is accelerated. It is
late to pursue this kind of strategy."

Mr. Blanaru added that Companhia Siderurgica got stuck in time,
while competitors like Gerdau SA have pursued smaller
acquisitions to strengthen their market positions, BNamericas
says.  He added that consolidation in Brazil is still possible,
but difficult.

Recently, the Brazilian steelmaker has expressed interest in
bidding for a controlling stake in Colombia's Acerias Paz de
Rio.  

"We have a look at many opportunities like the Columbian steel
company and will now continue to develop and expand the Casa de
Pedra iron ore mine and look at other consolidation
opportunities which will arise in the global steel industry," a
CSN spokesperson told PTI.

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 Feb. 2, 2007, Standard & Poor's Ratings Services
affirmed its 'BB' local- and foreign-currency corporate credit
ratings on Brazil-steel maker Companhia Siderorgica Nacional or
CSN and removed them from CreditWatch, where they were placed on
Nov. 17, 2006, with negative implications.  S&P said the outlook
is stable.


FIDELITY NATIONAL: Reports Strong Fourth Quarter 2006 Results
-------------------------------------------------------------
Fidelity National Information Services, Inc., reported financial
results for the fourth quarter of 2006.  Consolidated revenue
increased to US$1.1 billion, net earnings increased to US$75.1
million and net earnings per diluted share was US$0.39.  For the
full year 2006, consolidated revenue increased to US$4.1
billion, net earnings increased to US$259.1 million and net
earnings per diluted share was US$1.37.  In accordance with
Generally Accepted Accounting Principles, these results reflect
the combination between FIS and Certegy Inc. as of Feb. 1, 2006,
the effective date of the merger.

"FIS reported excellent fourth quarter results with pro forma
revenue growth of 12.5%, EBITDA growth of 11.0% and adjusted
cash earnings of US$0.58 per diluted share," stated FIS Chairman
William P. Foley, II. For the full year 2006, the company
reported pro forma revenue growth of 8.8% and adjusted pro forma
EBITDA growth of 10.6%.  "We are extremely pleased with the
outstanding results we achieved in 2006, which was our first
year as a new public company.  Our strong operating performance
provides an excellent foundation for the continued growth and
success of our company."

FIS' operating results are presented on a GAAP and on an
adjusted pro forma basis, which management believes provides
more meaningful comparisons between the periods presented.  FIS'
pro forma results reflect a Jan. 1, 2005, effective date for the
merger between FIS and Certegy, the March 2005 recapitalization
and sale of minority interests by FIS. Additionally, the
adjusted pro forma results exclude merger and acquisition and
integration expenses.  

               Pro Forma Segment Information

FIS' Transaction Processing Services generated revenue of
US$694.7 million, or 16.1% over the prior-year period, driven by
55.0% growth in International, 8.9% growth in Enterprise
Solutions and 8.6% growth in Integrated Financial Solutions.  
The company's new item processing operation in Brazil, new
account wins and deeper penetration of the existing customer
base contributed to the strong revenue growth. Transaction
Processing Services' EBITDA increased 16.6% over the prior-year
quarter to US$179.2 million.  The EBITDA margin of 25.8% was
comparable to the fourth quarter of 2005, and 160 basis points
above the third quarter 2006 EBITDA margin.

Lender Processing Services revenue increased 7.9% to US$437.1
million, driven by 10.6% growth in Information Services, which
continues to benefit from strong results within the default
solutions and appraisal product lines.  Lender Processing
Services' EBITDA was US$138.8 million, or 0.6%, below the prior
year quarter. The EBITDA margin was 31.7% compared with 34.4% in
the prior year.  The declines in EBITDA and the EBITDA margin
are primarily the result of strong growth in lower margin
product lines, lower tax processing volumes and a decline in
revenue from the company's investment property exchange
services.

Pro forma corporate expense for the fourth quarter of 2006
totaled US$23.3 million.  The US$4.5 million, or 16.1%, decline
from the prior-year quarter was primarily attributable to the
consolidation of duplicate administrative functions.  Pro forma
interest expense for the quarter increased US$8.2 million to
US$50.8 million, driven primarily by higher interest rates.  The
effective tax rate was 37.1% for the quarter.

                        2007 Outlook

FIS provided its outlook for 2007 as:

   -- Revenue growth of 7% to 9%, compared with pro forma
      revenue of US$4.2 billion in 2006.

   -- Pro forma earnings per diluted share of US$1.97 to
      US$2.03, compared with US$1.52 in 2006;

   -- Pro forma cash earnings per diluted share of US$2.47 to
      US$2.53, compared with US$2.10 in 2006;

   -- Pro forma EBITDA growth of 10% to 12%, compared with pro
      forma EBITDA of US$1.1 billion in 2006;

   -- Capital expenditures of approximately US$300 million;

   -- Pro forma free cash flow, which the company defines as
      net earnings plus depreciation and amortization less
      capital expenditures, of US$530 million to US$560 million.

The company's 2007 guidance includes after-tax stock option
expense of approximately US$21.5 million, or US$0.11 per diluted
share.  This compares to after-tax stock option expense of
US$31.4 million in 2006, which included US$12.1 million, or
US$0.06 per diluted share in comparable expense, and US$19.3
million in non-recurring performance based and accelerated stock
option expense.  The guidance excludes the remaining integration
costs associated with the Feb. 1, 2006, combination of FIS and
Certegy Inc., and the previously announced first quarter 2007
non-cash charge of approximately US$17.2 million after tax, or
US$0.09 per diluted share, incurred in conjunction with
refinancing the company's credit facilities, which was completed
Jan. 18, 2007.

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

                        *    *    *

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


FIDELITY NATIONAL: Declares US$0.05 Per Share Quarterly Dividend
----------------------------------------------------------------
Fidelity National Information Services, Inc., declared a regular
quarterly dividend of US$0.05 per common share.  The dividend is
payable March 28, 2007, to shareholders of record as of the
close of business March 14, 2007.

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

                        *    *    *

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


LAZARD LTD: Declares US$0.09 Per Share Quarterly Dividend
---------------------------------------------------------
Lazard Ltd.'s board of directors has declared a quarterly
dividend of US$0.09 per share on its outstanding Class A common
stock, payable on Feb. 28, 2007, to stockholders of record on
Feb. 16, 2007.

Lazard Ltd. -- http://www.lazard.com/-- one of the world's  
preeminent financial advisory and asset management firms,
operates from 29 cities across 16 countries in North America,
Europe, Asia, Australia and Brazil.  With origins dating back to
1848, the firm provides services including mergers and
acquisitions advice, asset management, and restructuring advice
to corporations, partnerships, institutions, governments, and
individuals.

                        *    *    *

At June 30, 2006, Lazard's balance sheet showed US$2.1 billion
in total assets and US$2.8 billion in total liabilities,
resulting in US$745 million stockholders' deficit.


PETROLEO BRASILEIRO: Posts Preliminary Manati Production Result
---------------------------------------------------------------
Norse Energy Corp., in partnership with Petroleo Brasileiro SA
and Queiroz Galvao Oil & Gas, reported the preliminary
production result for January for the Manati gas field.

Petroleo Brasileiro holds 35% of Manati.  It is also the field's
operator.  Norse Energy Corp owns a 10% in the field, while
Queiroz Galvao Oil & Gas holds 55%.

Production commenced ramp-up on two wells on Jan. 15.  
Production for the month totaled approximately 29 million cubic
meters of wet gas, net of retained gas.  After a ramp-up period,
production so far has been stable at approximately 1.8 million
cubic meters per day, with highs above 1.9 million cubic meters.  
Deliverability from these wells exceeds actual production, which
is aligned with the ramp up of supplying the regional demand.

Liquids in the gas stream are being extracted at the Sao
Fransisco plant.  The condensate has an API of high 50 degrees.  
The condensate is currently produced to tanks, and will be sold
in US dollar at a Brent price reference when volumes allow.  The
dry gas is sold to Petroleo Brasileiro in local denominated
currency.

Well 3 is under final tie-in, and is expected to come on stream
during February 2007.

Well 4 is currently under completion, and is expected to be
ready for production late in the quarter.

Well 5 has reached the top of the Sergi reservoir, and indicates
a higher gross pay than any of the previous wells. Log date will
become available during February.

Overall, production capacity is expected to be gradually
increased to 6.0 million cubic meters per day, according to
estimates provided by the operator.  Actual production will be
aligned with local gas demand.

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: Unit Selling Biodiesel in All Outlets
----------------------------------------------------------
Brazilian state oil Petroleo Brasileiro SA's retail unit, BR
Distribuidora, said in a statement that it will sell biodiesel
in all its service stations by July.

BR Distribuidora said in a statement that it has 44 biodiesel
distribution centers and terminals in strategic regions
throughout Brazil.

Business News Americas relates that BR Distribuidora began
selling biodiesel made up of a 2% admixture to ordinary diesel
in 2006.  Meanwhile, Petroleo Brasileiro has been purchasing
biodiesel at government auctions and investing to start
producing the fuel.

The report says that BR Distribuidora invested BRL20 million in
2005 and 2006 to prepare for and start the sale of biodiesel.  

BR Distribuidora said in a statement that it wants to have 64
biodiesel distribution centers and terminals by the end of this
year.

BNamericas underscores that the investment in expanding
biodiesel distribution is part of Petroleo Brasileiro's BR953-
million distribution operations for this year.

BR Distribuidora will also invest in environmental protection
programs and in improvement of distribution infrastructure for
all fuels, 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.


TELE NORTE: Launching IPTV Services in First Semester of 2007
-------------------------------------------------------------
Fixed line telecommunications operator Tele Norte Leste
Participacoes aka Telemar will be launching Internet Protocol
Television or IPTV and Internet services in the first semester
of this year, Business Development Director Ana Paula Maciel
told BNamericas.  Oi, its mobile unit will launch the services.

Ms. Maciel adds that Telemar also intends to introduce in the
second semester IPTV services over fixed line telephony,
BNamericas relates.

The service is intended to be launched in various packages as to
attract a broad range of customers, to reach its goal of
appealing to at least 1.4 million broadband Internet clients to
employ its IPTV service, Ms. Maciel told BNamericas.

According to the same report, 50 Telemar employees are presently
performing tests on various services such as time shift TV,
pause live TV and interactive TV.

"This year and next will be a learning phase as the company
understands what the users want," Ms. Maciel said to BNamericas.

Ms. Maciel admitted to BNamericas that the IPTV tevhnology still
faces many challenges for telecommunications companies, such as
choosing between MPEG2 and MPEG4 for digital compression and
what content to use.  But she said that this is a catalyst for
obtaining customer loyalty and giving new services to customers
through the IP pipeline.

Headquartered in Rio de Janeiro, Brazil, Tele Norte Leste
Participacoes SA -- http://www.telemar.com.br-- is a provider
of fixed-line telecommunications services in South America.  The
company markets its services under its Telemar brand name.  Tele
Norte's subsidiaries include:

          -- Telemar Norte Leste SA,
          -- TNL PCS SA,
          -- Telemar Internet Ltda., and
          -- Companhia AIX Participacoes SA.

                        *    *    *  

As reported in the Troubled Company Reporter on Feb. 5, 2007,
Standard & Poor's Ratings Services raised its long-term
corporate credit rating on Brazil-based telecom service
providers Tele Norte Leste Participacoes SA and Telemar Norte
Leste SA, jointly referred to as Telemar, to 'BB+' from 'BB'.  
At the same time, Standard and Poor's revised its ratings on the
combined BRL300 million outstanding local debentures of Telemar
Participacoes SA in Brazil National Scale to 'brAA-' from
'brA+', and assigned o 'brAA-' rating to TmarPart's proposed
five-year BRL$250 million debentures.


TIMKEN CO: Declares US$0.16 Per Share Quarterly Dividend
--------------------------------------------------------
The Timken Co.'s board of directors declared a quarterly cash
dividend of 16 cents per share.  The dividend is payable on
March 2, 2007, to shareholders of record as of Feb. 16, 2007.  
It will be the 339th consecutive dividend paid on the common
stock of the 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.




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


ABSCDO-1 WAREHOUSE: Last Day to File Proofs of Claim Is Feb. 22
---------------------------------------------------------------
ABSCDO-1 Warehouse Ltd.'s creditors are required to submit
proofs of claim by Feb. 22, 2007, to the company's liquidators:

          Guy Major
          Jan Neveril
          Maples Finance Limited
          P.O. Box 1093, George Town
          Grand Cayman, Cayman Islands  

Creditors who are not able to comply with the Feb. 22 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

ABSCDO-1 Warehouse'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.


BALLYROCK CDO: Creditors Have Until Feb. 22 to File Claims
----------------------------------------------------------
Ballyrock CDO I Ltd.'s creditors are required to submit proofs
of claim by Feb. 22, 2007, to the company's liquidators:

          Steven O'Connor
          Richard Gordon
          Maples Finance Limited
          P.O. Box 1093, George Town
          Grand Cayman, Cayman Islands  

Creditors who are not able to comply with the Feb. 22 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Ballyrock CDO's shareholders agreed on Jan. 2, 2007, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


COMMONFUND INSTITUTIONAL: Claims Filing Deadline Is on Feb. 22
--------------------------------------------------------------
Commonfund Institutional Commodities Fund, Ltd.'s creditors are
required to submit proofs of claim by Feb. 22, 2007, to the
company's liquidators:

          John Cullinane
          Derrie Boggess
          c/o Walkers SPV Limited
          87 Mary Street, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 914-6305

Creditors who are not able to comply with the Feb. 22 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Commonfund Institutional's shareholders agreed on Jan. 12, 2007,
for the company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


FREMONT CI-1: Last Day for Proofs of Claim Filing Is on Feb. 22
---------------------------------------------------------------
Fremont CI-1's creditors are required to submit proofs of claim
by Feb. 22, 2007, to the company's liquidators:

          Chris Watler
          Joshua Grant
          Maples Finance Limited
          P.O. Box 1093, George Town
          Grand Cayman, Cayman Islands  

Creditors who are not able to comply with the Feb. 22 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Fremont CI-1's shareholders agreed on Jan. 2, 2007, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


FREMONT CI-2: Deadline for Proofs of Claim Filing Is on Feb. 22
---------------------------------------------------------------
Fremont CI-2's creditors are required to submit proofs of claim
by Feb. 22, 2007, to the company's liquidators:

          Chris Watler
          Joshua Grant
          Maples Finance Limited
          P.O. Box 1093, George Town
          Grand Cayman, Cayman Islands  

Creditors who are not able to comply with the Feb. 22 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Fremont CI-2's shareholders agreed on Jan. 2, 2007, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


KEYNES FUND: Deadline for Proofs of Claim Filing Is on Feb. 22
--------------------------------------------------------------
The Keynes Fund Ltd.'s creditors are required to submit proofs
of claim by Feb. 22, 2007, to the company's liquidators:

          Warren Keens
          John Sutlic
          P.O. Box 1034, George Town
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Feb. 22 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Keynes Fund's shareholders agreed on Jan. 8, 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:

          Thiry Gordon
          Close Brothers (Cayman) Limited
          Fourth Floor, Harbour Place
          P.O. Box 1034, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 949 8455
          Fax: (345) 949 8499


KEYNES LEVERAGED: Proofs of Claim Filing Deadline Is on Feb. 22
---------------------------------------------------------------
Keynes Leveraged Fund Ltd.'s creditors are required to submit
proofs of claim by Feb. 22, 2007, to the company's liquidators:

          Warren Keens
          John Sutlic
          P.O. Box 1034, George Town
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Feb. 22 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Keynes Leveraged's shareholders agreed on Jan. 8, 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:

          Thiry Gordon
          Close Brothers (Cayman) Limited
          Fourth Floor, Harbour Place
          P.O. Box 1034, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 949 8455
          Fax: (345) 949 8499


KEYNES LEVERAGED MASTER: Proofs of Claim Filing Is Until Feb. 22
----------------------------------------------------------------
Keynes Leveraged Master Fund Ltd.'s creditors are required to
submit proofs of claim by Feb. 22, 2007, to the company's
liquidators:

          Warren Keens
          John Sutlic
          P.O. Box 1034, George Town
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Feb. 22 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Keynes Leveraged's shareholders agreed on Jan. 8, 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:

          Thiry Gordon
          Close Brothers (Cayman) Limited
          Fourth Floor, Harbour Place
          P.O. Box 1034, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 949 8455
          Fax: (345) 949 8499


KEYNES MASTER: Last Day for Proofs of Claim Filing Is on Feb. 22
----------------------------------------------------------------
Keynes Master Fund Ltd.'s creditors are required to submit
proofs of claim by Feb. 22, 2007, to the company's liquidators:

          Warren Keens
          John Sutlic
          P.O. Box 1034, George Town
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Feb. 22 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Keynes Master's shareholders agreed on Jan. 8, 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:

          Thiry Gordon
          Close Brothers (Cayman) Limited
          Fourth Floor, Harbour Place
          P.O. Box 1034, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 949 8455
          Fax: (345) 949 8499


MINCS-CUMBERLAND: Creditors Must File Proofs of Claim by Feb. 22
----------------------------------------------------------------
Mincs-Cumberland I, Ltd.'s creditors are required to submit
proofs of claim by Feb. 22, 2007, to the company's liquidators:

          Phillip Hinds
          Joshua Grant
          Maples Finance Limited
          P.O. Box 1093, George Town
          Grand Cayman, Cayman Islands  

Creditors who are not able to comply with the Feb. 22 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Mincs-Cumberland'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.


SEQUILS-CUMBERLAND (HOLDINGS): Claims Filing Is Until Feb. 22
-------------------------------------------------------------
Sequils-Cumberland I Holdings, Ltd.'s creditors are required to
submit proofs of claim by Feb. 22, 2007, to the company's
liquidators:

          Phillip Hinds
          Joshua Grant
          Maples Finance Limited
          P.O. Box 1093, George Town
          Grand Cayman, Cayman Islands  

Creditors who are not able to comply with the Feb. 22 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Sequils-Cumberland'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.


SEQUILS-CUMBERLAND: Last Day for Claims Filing Is on Feb. 22
------------------------------------------------------------
Sequils-Cumberland I, Ltd.'s creditors are required to submit
proofs of claim by Feb. 22, 2007, to the company's liquidators:

          Phillip Hinds
          Joshua Grant
          Maples Finance Limited
          P.O. Box 1093, George Town
          Grand Cayman, Cayman Islands  

Creditors who are not able to comply with the Feb. 22 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Sequils-Cumberland'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.


SPROUT GROWTH: Creditors Must File Proofs of Claim by Feb. 22
-------------------------------------------------------------
Sprout Growth, Ltd.'s creditors are required to submit proofs of
claim by Feb. 22, 2007, to the company's liquidator:

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

Creditors who are not able to comply with the Feb. 22 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Sprout Growth's shareholders agreed on Jan. 1, 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:

          M C Fitzgerald
          P.O. Box 707, George Town
          Grand Cayman, Cayman Islands
          Tel: 345 945-4777
          Fax: 345 945-4799


ZAIS MATRIX: Creditors Must Submit Proofs of Claim by Feb. 22
-------------------------------------------------------------
Zais Matrix CDO I's creditors are required to submit proofs of
claim by Feb. 22, 2007, to the company's liquidators:

          Hugh Thompson
          Richard Gordon
          Maples Finance Limited
          P.O. Box 1093, George Town
          Grand Cayman, Cayman Islands  

Creditors who are not able to comply with the Feb. 22 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Zais Matrix's shareholders agreed on Jan. 3, 2007, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.




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


CONSTELLATION BRANDS: To Purchase SVEDKA Vodka for US$384 Mil.
--------------------------------------------------------------
Constellation Brands, Inc., has reached agreement with Guillaume
Cuvelier and Belgian-based Alcofinance S.A., the owners of
SVEDKA Vodka, to acquire the brand and related business for
US$384 million. The transaction, which includes the acquisition
of Spirits Marque One LLC, the SVEDKA brand owner, is expected
to close approximately March 1, 2007.

SVEDKA, an 80 proof premium vodka produced in Sweden, was
launched in 1998 and it is now the fastest growing major
imported premium vodka in the United States.  Approximately 1.1
million cases of SVEDKA were sold during calendar 2006,
predominantly in the U.S., a 60 percent increase over 2005 sales
volume.

"SVEDKA's phenomenal success is largely due to the eye-catching
and effective marketing and advertising campaigns that reach a
key segment of the young adult market," commented Richard Sands,
Constellation Brands chairman and chief executive officer.  
"SVEDKA complements and enhances our premium spirits offerings
by providing a popular and rapidly growing vodka brand in the
largest U.S. spirits category.  It has strong brand equity and
positive momentum, which we can build upon through increased
U.S. distribution, as well as international expansion.  We
believe SVEDKA is a perfect fit, providing us with a platform
for expansion of our premium spirits portfolio.  With continued
marketing investment we will look to maximize the brand's long-
term growth potential and value," concluded Mr. Sands.

Spirits Marque One founder, and SVEDKA creator, Guillaume
Cuvelier will lead the New York-based brand management team with
the same independent spirit that has successfully differentiated
SVEDKA from the competition.  The brand marketing and sales team
will retain their autonomy with the SVEDKA_Grl campaign
continuing to promote the brand.

"Constellation recognizes SVEDKA's unique culture and
capabilities," stated Mr. Cuvelier.  "Its management realizes
SVEDKA's future is extremely bright and they will fully support
us as we continue to build upon the brand's current phenomenal
growth rate and marketplace momentum.  Our entrepreneurial
culture fits perfectly with Constellation's, which
differentiates our companies from others in the business."

SVEDKA is the fastest growing major premium vodka imported to
the U.S., and fifth largest imported vodka with eight percent
market share in the imported vodka category according to
Information Resources, Inc. data.  SVEDKA is 40 percent alcohol
by volume (80 proof) and is also available in four, 70 proof (35
percent alcohol by volume) flavor variations: Citron,
Clementine, Raspberry and Vanilla.

Constellation estimates that this acquisition will be dilutive
to diluted earnings per share by approximately US$0.05 - US$0.06
for fiscal 2008.  It is also expected to be dilutive the
following two fiscal years, before becoming accretive.  The
transaction will be financed with debt under Constellation's
senior credit facility.  The transaction is also subject to
customary regulatory approvals and other closing conditions.

Belgium's Alcofinance S.A. is a worldwide leader in the
production and distribution of ethanol.

Michel Dyens & Co. acted as exclusive financial advisor to
SVEDKA and Spirits Marque One.

Based in Fairport, New York, Constellation Brands, Inc.
(NYSE:STZ, ASX:CBR) -- http://www.cbrands.com/-- produces and
markets beverage alcohol brands with a broad portfolio across
the wine, spirits and imported beer categories.  Well-known
brands in Constellation's portfolio include: Almaden, Arbor
Mist, Vendange, Woodbridge by Robert Mondavi, Hardys, Nobilo,
Kim Crawford, Alice White, Ruffino, Kumala, Robert Mondavi
Private Selection, Rex Goliath, Toasted Head, Blackstone,
Ravenswood, Estancia, Franciscan Oakville Estate, Inniskillin,
Jackson-Triggs, Simi, Robert Mondavi Winery, Stowells,
Blackthorn, Black Velvet, Mr. Boston, Fleischmann's, Paul Masson
Grande Amber Brandy, Chi-Chi's, 99 Schnapps, Ridgemont Reserve
1792, Effen Vodka, Corona Extra, Corona Light, Pacifico, Modelo
Especial, Negra Modelo, St. Pauli Girl, Tsingtao.  One of
Constellation Brands wine and grape processing facilities is
located in Casablanca, Chile.

                        *    *    *

As reported in the Troubled Company Reporter on Aug. 14, 2006,
Moody's Investors Service assigned a (P)Ba2 rating to
Constellation Brands, Inc.'s new shelf and concurrently, a Ba2
rating to Constellation's new US$500 million senior unsecured
note, due 2016.  Constellation's existing ratings are not
affected by these actions, and have been affirmed.  The ratings
outlook remains negative.

As reported in the Troubled Company Reporter on Sept. 26, 2006
Moody's Investors Service's, in connection with its
implementation of its new Probability-of-Default and Loss-Given-
Default rating methodology for the U.S. beverage company sector,
affirmed its Ba2 Corporate Family Rating for Constellation
Brands Inc., and downgraded its Ba3 probability-of-default
rating to B1.  The rating agency also assigned its LGD6 loss-
given-default ratings on the Company's US$250 million 8.125%
Senior Subordinated Notes due Jan. 15, 2012, suggesting
noteholders will experience a 95% loss in the event of a
default.


CONSTELLATION BRANDS: S&P Says SVEDKA Buy Won't Affect Ratings
--------------------------------------------------------------
Standard & Poor's Ratings Services said that there would be no
effect on the ratings or outlook of Fairport, N.Y.-based
Constellation Brands Inc. (BB/Negative/--) following the
announcement that it has reached an agreement to acquire the
SVEDKA Vodka brand and related business for US$384 million.  The
transaction, subject to customary regulatory approvals and other
closing conditions, will be financed with debt under
Constellation Brands' senior credit facility and is expected to
close on or about March 1, 2007.  The acquisition will enhance
the company's premium spirits offerings and provide a platform
for expansion.  Although Standard & Poor's does not expect
credit measures to change materially pro forma for the
acquisition, these measures are already weak for the rating.  
Constellation Brands' ratings could be lowered if its financial
profile is further leveraged or if its credit protection
measures do not improve to levels more in line with its 'BB'
rating.

One of Constellation Brands wine and grape processing facilities
is located in Casablanca, Chile.




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


BANCO DEL CAFE: Davivienda Subscribes to COP399 Bil. in Equity
--------------------------------------------------------------
Banco Davivienda said in a statement that its shareholders have
subscribed to COP399 billion in equity to partly fund the
acquisition of Banco del Cafe aka Bancafe.

As reported in the Troubled Company Reporter-Latin America on
Feb. 5, 2007, Banco Davivienda said that it aims to raise
COP260 billion in a new share issue designed partly to fund the
acquisition of Banco del Cafe aka Bancafe.  Banco Davivienda
wanted to wrap up the purchase of Banco del Cafe in November
2007.  Banco Davivienda won the auction of a 99% stake in Banco
del Cafe with a US$927 million bid.  Banco Davivienda offered
almost twice the minimum price set by the government and about
US$139 million more than what rival Banco de Bogota offered.  
Banco Davivienda will finance its acquisition of Bancafe through
a US$125-million bond issue and a US$175-million capital
increase.  The International Finance Corp. aka IFC said that it
will help Banco Davivienda in funding its purchase of Bancafe.

International Finance Corp. investment officer for Banco
Davivienda Pablo Verra told Business News Americas that the
capital increase comprises:

        -- US$75 million from parent firm Sociedad Bolivar
           through a loan signed with Credit Suisse,

        -- US$75 million in equity from the IFC, and

        -- US$30 million from other existing shareholders.

According to BNamericas, the equity investment increased IFC's
participation in Banco Davivienda to 9% from 4%.

Mr. Verra told BNamericas that IFC will arrange US$165 million
in subordinated debt for Banco Davivienda.  IFC will take on
US$65mn of the debt and the remainder will be syndicated among
international banks, pension funds and insurance companies.

BNamericas relates that Banco Davivienda will finance the
remainder of the acquisition with US$250 million in senior debt
and its own cash resources.

Local financial regulator Superfinanciera ratified the Banco
Davivienda's acquisition of Bancafe, BNamericas states.

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


BRIGHTPOINT: Earns US$9.7 Mil. in Quarter Ended Dec. 31, 2006
-------------------------------------------------------------
Brightpoint, Inc., reported its financial results for the fourth
quarter and year ended Dec. 31, 2006.  Unless otherwise noted,
amounts pertain to the fourth quarter of 2006.  In May 2006, the
company's Board of Directors approved and the company effected a
6-for-5 common stock split in the form of a 20% stock dividend.  

"Our fourth quarter revenue of US$677 million and over 15
million wireless devices handled were all time quarterly
records," stated Robert J. Laikin, Brightpoint's Chairman of the
Board and Chief Executive Officer.  "The global demand for
wireless devices continued to be healthy as reflected in Q4 with
a sell-in estimate of over 280 million units.  In the first
quarter of 2007, I expect to see a normal seasonal sequential
decline in the range of 10% to 15% for the industry.  In 2006, I
believe approximately 975 million devices were shipped on a
global basis.  I remain bullish on the global wireless device
industry and believe the wireless devices sell-in range for 2007
to be 1.1 billion to 1.2 billion units, representing solid
double-digit growth year-over-year.  We remain optimistic on
Brightpoint's growth prospects in 2007.  Last year Brightpoint
was awarded several major contracts, and 2007 will be a year of
implementation and integration. Our business development efforts
remain strong in 2007 and we believe that we are well positioned
in the value chain to take advantage of the many global
opportunities within the wireless industry."

"I am very pleased with our record levels of revenue and units
handled as well as with our strong earnings performance in the
fourth quarter of 2006," said Tony Boor, Brightpoint's Chief
Financial Officer.  "In 2007 we will focus on executing upon the
multiple new opportunities we were awarded in 2006.  We will
also pursue additional strategic initiatives in an effort to
continue our growth trends and to build upon our global brand
equity."

Brightpoint experienced a year-over-year increase in wireless
devices handled of 6% during the fourth quarter of 2006 and
year-over-year growth in revenue of 7%.  Wireless devices
handled through logistic services were 76% of total wireless
devices handled for both the fourth quarter of 2006 and the
fourth quarter of 2005.

For the fourth quarter of 2006, our Americas, Asia-Pacific and
Europe divisions experienced year-over year growth in devices
handled of 4%, 15% and 25%, respectively.  The growth in
wireless devices handled in our Americas division was primarily
driven by increased demand as a result of market growth
experienced by current logistic services customers, which was
partially offset by lower volume with our primary network
operator customer in Colombia.  The increase in wireless devices
handled in our Asia-Pacific division was primarily due to
increased handset distribution units sold through our
Brightpoint Asia Limited business as a result of improved
product availability at competitive prices.  The increase in
wireless devices handled in our Europe division was due to
increased demand for and availability of branded converged
wireless devices as well as sales of devices resulting from our
entry into Russia during the second quarter of 2006. In
addition, we believe our Europe division benefited from market
share gains in Sweden.

Gross margin for the fourth quarter of 2006 decreased to 6.2%
from 6.9% in the fourth quarter of 2005.  A 3.6 percentage point
increase in gross margin from logistic services was more than
offset by a 1.0 percentage point decrease in gross margin from
our distribution business.  The 3.6 percentage point increase in
logistic services gross margin was due primarily to improved
profitability of our repair business in India.  The 1.0
percentage point decrease in distribution gross margin was
primarily due to a decrease in several markets as a result of a
shift in product mix to lower margin end-of-life products and
refurbished products during the fourth quarter of 2006 compared
to the fourth quarter of 2005.  Sequentially, gross margin
improved 0.4 percentage points from 5.8% in the third quarter of
2006. This increase in gross margin was driven by an 8.9
percentage point sequential increase in logistic services gross
margin resulting from increased volume in our Americas division
and improved profitability of our repair business in India.

Selling, general and administrative expenses increased US$2.4
million or 9% from the fourth quarter of 2005.  As a percent of
revenue, SG&A expenses increased to 4.4% in the fourth quarter
of 2006 from 4.3% in the fourth quarter of 2005. The increase in
SG&A expenses was primarily due to a US$1.4 million increase in
personnel costs largely in support of overall growth in volumes,
a US$0.7 million increase in non-cash stock based compensation
including the effects of adopting SFAS 123(R), a US$0.7 million
increase to support our investment in Advanced Wireless Services
in the Americas and a US$0.8 million increase related to the
acquisition of Persequor Limited during the first quarter of
2006, partially offset by a US$1.3 million decrease in incentive
compensation.  Sequentially, SG&A expenses increased US$5.3
million or 22% from the third quarter of 2006 due to a US$1.8
million increase in incentive compensation and a US$0.7 million
increase in non-cash stock based compensation as a result of
achieving certain strategic targets as well as a US$1.1 million
increase in personnel costs primarily in support of overall
growth in volumes.

Operating income from continuing operations was US$12.0 million,
a decrease of 26% from the fourth quarter of 2005.  The year-
over-year decrease in Operating Income for the quarter was
driven by a US$1.8 million decrease in gross profit combined
with a US$2.4 million increase in SG&A expenses.

The effective income tax rate in the fourth quarter of 2006 was
21.0% compared to 23.8% in the fourth quarter of 2005.  The
decrease in the effective income tax rate was the result of the
recognition of certain deferred tax assets not previously
recognized, the release of a contingency reserve for which the
statute of limitations expired and the release of a contingency
reserve for which the potential expense was no longer deemed
probable.

Cash and cash equivalents (unrestricted) were US$54.1 million at
Dec. 31, 2006, a decrease of US$49.5 million from
Sept. 30, 2006.  The company's liquidity (unrestricted cash and
unused borrowing availability) was approximately US$129.8
million as of Dec. 31, 2006, compared to US$202 million as of
Sept. 30, 2006.  Cash conversion cycle days increased to 22 days
for the fourth quarter of 2006 from 11 days for the third
quarter of 2006.  The increase in cash conversion cycle days as
well as the decrease in cash and liquidity was due to vendor
payments related to significant purchases of wireless devices
near the end of September and December 2006 in connection with
the expanded global relationship with a major original equipment
manufacturer.  This expanded global relationship is still in its
launch and development stage, and we intend to improve our
liquidity and cash conversion cycle as the related new sales
channels are solidified and as the new distribution model is
rationalized.

Headquartered in Plainfield, Indiana, Brightpoint, Inc.
-- http://www.brightpoint.com/-- engages in the distribution of
wireless devices and accessories, as well as provision of
customized logistic services to the wireless industry.  The
Company primarily operates in Australia, Colombia, Finland,
Germany, India, New Zealand, Norway, the Philippines, the Slovak
Republic, Sweden, United Arab Emirates and the United States.  
The Company's customers include mobile operators, mobile virtual
network operators, resellers, retailers and wireless equipment
manufacturers.  Brightpoint was incorporated in 1989 under the
name Wholesale Cellular USA, Inc. and changed its name to
Brightpoint Inc. in 1995.

                        *    *    *

On April 12, 2006, Standard & Poor's placed the Company's long-
term local and foreign issuer credit ratings at BB- with a
stable outlook.


GERDAU SA: Colombian Antitrust Agency Allows Bid for Acerias Paz
----------------------------------------------------------------
Gerdau SA obtained approval from Colombia's antitrust'
authorities to submit a bid for the Acerias Paz del Rio auction.

Previously, the Colombian antitrust authorities prevented Gerdau
from participating in the auction of a 51.89% stake in Acerias
Paz.  The antitrust agency said that the potential integration
of Gerdau and Paz del Rio would unduly restrict competition.  
Gerdau already controls Colombian steel firms Diaco and
Siderurgica del Pacifico.

Gerdau got the approval after filing an appeal.  According to
The Associated Press, the antitrust authority said Monday it
will allow Brazil's largest steel maker to bid for a controlling
stake in steel mill Acerias Paz del Rio if it sells several
assets to free up competition in the country's steel market.

Without shedding some assets, Gerdau stands to control 98% of
Colombia's steel industry.  

The other four firms interested in becoming a strategic partner
in APR include:

          -- Europe's Arcelor Mittal,
          -- Argentina's Techint, and
          -- a company from Mexico, and
          -- Brazil's Companhia Siderurgica Nacional.

The minimum price for the stake was set at about US$192 million
(euro145 million), AP says.  

                        About Gerdau

Headquartered in Porto Alegre, Brazil, Gerdau SA --
http://www.gerdau.com.br/-- produces and distributes crude
steel and related long rolled products, drawn products, and long
specialty products.  In addition to Brazil, Gerdau operates in
Argentina, Canada, Chile, Colombia, Uruguay and the United
States.

Gerdau's four majority-owned Brazilian operating subsidiaries
are:

   -- Acominas,
   -- Gerdau Acos Longos SA,
   -- Gerdau Acos Especiais SA and
   -- Gerdau Comercial de Acos SA;

                        *    *    *

Gerdau SA's US$600 million 8-7/8% perpetual bond is rated Ba1 by
Moody's, BB+ by S&P, and BB- by Fitch.

                        *    *    *

As reported in the Troubled Company Reporter on March 3, 2006,
Standard & Poor's Ratings Services raised its foreign currency
counterparty credit rating on Banco Nacional de Desenvolvimento
Economico e Social SA to 'BB' with a stable outlook from 'BB-'
with a positive outlook.  The company's local currency credit
rating was also shifted to 'BB+' with a stable outlook from 'BB'
with a positive outlook.


MILLICOM INTERNATIONAL: Colombian Unit Selling 17.6% Stake
---------------------------------------------------------
Colombia Movil, Millicom International Cellular's Colombian
unit, will sell a 17.6% stake through an initial public
offering, Dow Jones Newswires reports.

The shares represent 17.6% of the Colombia Movil's capital, Dow
Jones notes, citing a Colombia Movil official.

Edgar Jimenez, who manages a fund of shares with local brokerage
Promotora Bursatil, told Dow Jones, "I won't buy those (Colombia
Movil) shares because the risk related to the telecommunications
industry is high and because there are better options out there
such as Isagen's (shares)."

According to Dow Jones, Colombia Movil reported yearly losses
since its creation in 2003.

Colombia Movil's local shareholders Empresa de
Telecomunicaciones de Bogota and Empresas Publicas de Medellin
had injected about US$660 million in the firm before selling a
controlling stake to Millicom International, Dow Jones says.

Dow Jones underscores that Millicom International acquired a 51%
stake in Colombia Movil last year for US$479 million.  The firm
will spend US$200 million this year in the modernization of the
wireless network, part of which will come from the proceeds of
the offering.

Colombia Movil told Dow Jones that it will raise COP185.1
billion with the sale.

Dow Jones relates that Colombia Movil set a limit on the amount
of shares investors can purchase in the firm.  Investors must
buy at least 500 shares, requiring a minimum total investment of
COP10 million.

Mr. Jimenez commented to Dow Jones that Colombia Movil is trying
to attract rich investors.

Andres Ortiz, Corredores Asociados' commercial vice president,
told Dow Jones that these are the brokerages that will be
selling Colombia Movil shares:

          -- Corredores Asociados,
          -- Interbolsa,
          -- Correval,
          -- Casa de Bolsa, and
          -- Serfinco.

Colombia Movil hired investment bank Corporacion Financiera
Colombiana SA to structure the sale, which will close on Feb.
23, Dow Jones states.

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

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

                        *    *    *

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

                        *    *    *

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


* COLOMBIA: Superindustria Approves Ecogas Sale
-----------------------------------------------
Superindustria, the Colombian industrial and commercial
regulatory agency, has authorized the purchase of gas
distributor Ecogas by EEB, a multi-utility holding owned by
Bogota, Business News Americas reports.

According to BNamericas, EEB bought Ecogas in December 2006.  
EEB won a public auction for Ecogas with a COP3.25 trillion bid.

BNamericas relates that lawmakers were concern about EEB having
a monopoly in natural gas distribution, as EEB also has a stake
in Gas Natural.

The Colombian finance ministry allowed EEB to assume US$1.5-
billion new debt to fund its acquisition of Ecogas, the report
says.

Ecogas was formed in 1997 to manage the gas transport
infrastructure of state oil firm Ecopetrol.  Bogota owns 81% of
EEB, Ecopetrol 7%, Corficolombiana, and Endesa hold 11% with
minority shareholders and former workers holding the rest,
BNamericas states.

                        *    *    *

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




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


CLOROX CO: Declares US$0.31 Per Share Quarterly Dividend
--------------------------------------------------------
The Clorox Co.'s board of directors has declared a regular
quarterly dividend of 31 cents per share on the company's common
stock, payable May 15, 2007, to stockholders of record on
April 27, 2007.

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

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

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


US AIRWAYS: Pilots Picket to Support Single Fair Contract
---------------------------------------------------------
The US Airways and America West pilots picketed on
Feb. 6, 2007,at Reagan Washington National Airport to demand
that US Airways management, after being distracted by a failed
merger attempt, focus on negotiations for a single pilot
contract.  The pilot groups, both of which are represented by
the Air Line Pilots Association or ALPA, International, are also
calling on CEO Doug Parker to take responsibility for the
operational issues that have plagued US Airways since the merger
process began in September 2005.

US Airways is posting continuous quarterly profits and just
earned its first full-year profit since 1999. However,
management continues to pass bankruptcy-era proposals at the
negotiating table that ignore the unprecedented investment that
the pilots made to keep their airline viable after 9/11.  A
single contract would be a significant step toward completing
the America West-US Airways merger and combining the two
airlines, allowing passengers to finally benefit from a fully
merged, seamless operation.

"With operational issues threatening the stability of our
airline, Doug Parker is beginning to see the consequences of
unfinished business in his own backyard.  When he decided to
focus on acquiring Delta Airlines, it distracted management from
their most important work: to complete the merging of US Airways
and America West," said Captain Jack Stephan, chairman of the US
Airways Master Executive Council. "He's had ample opportunity to
improve the airline's performance.  Instead, he has used our
billions of dollars in concessions in a failed attempt to take
over another airline, when he should have been concentrating on
negotiating a fair contract that recognizes our investment."

"US Airways has the ability to negotiate fairly with labor and
can ill afford not to," said Captain John McIlvenna, chairman of
the America West Master Executive Council.  "We have patiently
watched and waited for management to improve its labor
relations, and we continue to be disappointed.  It's time to get
serious about completing the merger between US Airways and
America West in order to build a bigger and better airline."

The joint negotiations process with US Airways management for a
single, fair pilot contract is now approaching a year and a
half.  Both pilot groups remain focused on the issue of
achieving a fair single contract, one that is commensurate with
US Airways' position in the marketplace.

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

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

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

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

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

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

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


* COSTA RICA: ICE Unions to Stage Protests Against CAFTA-DR
-----------------------------------------------------------
El Instituto Costarricense de Electricidad aka ICE unions are to
hold a protest on Feb. 19 in connection with the possible
approval of the free trade agreement with the United States,
Prensa Latin reports.

Pres. Mauricio Hernandez of ICE's Union of Economic Sciences
Professionals told Prensa Latin that some representatives are
still deliberating whether to hold the protest in one day or for
an indefinite time.  He added that the unions are "exhausting"
all legal authorities and working with the PAC, a citizen
actions group, to ensure the non-ratification of the CAFTA-DR.

"The unions will fight against anything contrary to the legal
norm for passing legislation," Mr. Hernandez related to Prensa
Latin.

Other protests against the CAFTA-DR are also carried out in
other regional venues.

                        *    *    *

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




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


* CUBA: New Bill in US Congress Seeking to Ease Ban on Nation
-------------------------------------------------------------
The US House of Representatives are studying a new bill that
would seek to ease the ban of US travel to Cuba, All Headline
News reports.

According to All Headline News, the bill is part of a new wave
of legislation seeking to end the economic restriction on Cuba,
which was imposed to topple the Fidel Castro administration.  
Cuba was the sole nation in the Americas to target the US with
nuclear weapons.  Currently the embargo prohibits US citizens
and businesses from trading with Cuba.  Travel is also
restricted to:

          -- visiting immediate family members,
          -- attending academic or government conferences, and
          -- the media.

However, the timing of the legislation against the travel ban
would only serve to flood Cuba with US dollars at a time when
the nation may be at its weakest since its Revolution, All
Headline News notes, citing critics.

The report says that Representative William Delahunt and
Representative Ray LaHood proposed a bill to allow Cuban-
Americans unlimited visits to relatives living on the communist
island.

Mr. Delahunt told All Headline News, "This bill is an effort to
change an immoral policy, one that has caused pain and suffering
to our own citizens as well as the Cubans.  It's startling in
its cruelty."

"Every dollar that goes to Cuba goes directly to the Cuban
government.  Families will take that money, go to Cuban-
government stores and pay a very high price for whatever they
want to buy.  Denying Castro hard currency means he has less
money to repress the Cuban people and mount anti-American
activities around the world," Frank Calzon -- executive director
of the Center for a Free Cuba, which is in Washington --
commented to the South Florida Sun-Sentinel.

                        *    *    *

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

Moody's had assigned these ratings on Cuba:

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




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


AFFILIATED COMP: Gets IT Outsourcing Contract from Safety-Kleen
---------------------------------------------------------------
Affiliated Computer Services, Inc., has been awarded an
information technology-outsourcing contract from Safety-Kleen.  
The three-year contract is valued at US$3.3 million.

Under the terms of the agreement, ACS will maintain and support
Safety-Kleen's SAP R/3 environment, an enterprise resource
planning or ERP system.  ACS will provide integrated services
that include system and application management, monitoring, and
help desk.  The win underscores ACS' high profile in the market
for SAP services, a fast-growing segment of its full range of IT
solutions.

"The ACS team is a leader in their aptitude for proactive
management in the SAP arena," said Magnus Borg, SVP and CIO of
Safety-Kleen.  "Support is part of the program, however; we were
impressed with how they take initiative in identifying and
addressing issues before they become problems.  These
initiatives, combined with a strong track record of high
productivity and response times, will help to improve Safety-
Kleen's operational efficiencies across the board."

ACS will serve more than 4,000 SAP users at Safety-Kleen,
supporting diverse ERP modules such as order management,
finances and controlling, materials management, human resources,
and business warehouse.

Gary Gauba, President of ACS Systech Integrators, said that ACS'
ability to provide a dedicated SAP support team, its proactive
maintenance, and prowess in driving operational efficiencies
were key factors in its winning this contract.  "ACS has an
extraordinary level of SAP competence, combined with flexibility
and adaptability that stem from a business needs-driven
approach.  We look forward to a great partnership with Safety-
Kleen."

"ACS has built a strong reputation upon the reliable delivery of
world- class IT outsourcing services that offer impressive
levels of scalability," said Ann Vezina, ACS Executive Vice
President and Chief Operating Officer - Commercial.  "Our robust
support system ensures that we can adapt to Safety-Kleen's
changing needs with speed and intelligence.  ACS provides
exceptional solutions because we consider these elements of
flexibility and responsiveness vital to our philosophy of
service excellence."

                     About Safety-Kleen     

Safety-Kleen, a privately held company, is North America's
premier provider of industrial oil collection and re-refining,
parts cleaner services, and industrial waste management.
Safety-Kleen offers its customers a complete set of responsible
re-refining, cleaning, and environmental solutions through its
fully integrated branch network designed to collect, process,
recycle, re-refine, and dispose of a wide range of both
hazardous and non-hazardous waste streams.  The company has
approximately 4,500 employees serving hundreds of thousands of
customers in the United States, Canada and Puerto Rico.

                 About Affiliated Computer

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

                        *     *     *

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


AFFILIATED COMPUTER: S&P Revises B+ Rating Outloook to Positive
---------------------------------------------------------------
Standard & Poor's Ratings Services revised the CreditWatch
implications for its ratings on Dallas-based Affiliated Computer
Services Inc., including the 'B+' corporate credit rating, to
positive from negative.  The ratings remain on CreditWatch,
where they were placed on Jan. 27, 2006.

"The revision reflects the filing of audited financial reports
and the elimination of any triggering events that might have
caused a payment acceleration on the company's US$2 billion of
term debt," said Standard & Poor's credit analyst Philip
Schrank.  The current rating reflected the acceleration
potential.  Still outstanding, however, is a claim of covenant
default by certain holders of its senior notes (US$250 million
5.2% senior secured notes due June 2015, and US$250 million 4.7%
senior secured notes due June 2010).  In the event the claim of
default is upheld in a court of law, the company has the
capacity under its credit facilities to fund the debt repayment.  
ACS provides diversified business process outsourcing and
information technology outsourcing solutions.

We will meet with ACS' new management team to review current
performance and evaluate the results of its internal
investigation into its historical stock option practices to
determine the accounting consequences, the ongoing government
investigations regarding the option grants, pending litigation,
and any changes to strategy and corporate governance practices
to determine what, if any, effect they have on debt ratings.

The company has global operations in Brazil, China, Dominican
Republic, India, Guatemala, Ireland, Philippines, Poland and
Singapore.




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


DOLE FOOD: Unit Signs Leafy Greens Marketing Agreement
------------------------------------------------------
Dole Fresh Vegetables, Inc., a subsidiary of Dole Food company,
Inc., has signed the California Leafy Greens Marketing
Agreement.  Under the voluntary Agreement, all participants must
adhere to established good agricultural practices or GAP and
food safety guidelines.  Dole has always used GAP in all its
growing operations and the company has been a strong supporter
of the Agreement as a standard for the industry. Dole has taken
food safety one-step further by applying the California
standards in all states where its leafy greens are grown.

The California Leafy Greens Marketing Agreement will set
mandatory and specific standards for leafy greens supply; the
California Department of Health Services will monitor compliance
with the new standards.  Facilitated by the Western Growers
Association, Dole worked collaboratively with a group that
consisted of growers, processors, regulators and members of
academia to formulate the Agreement.

Eric Schwartz, President of Dole Fresh Vegetables, said, "Dole
is in full support of a uniform, national, leafy greens food
safety standard that will set mandatory and explicit guidelines
in the produce industry.  We strongly encourage our retail and
food service customers to support the Leafy Greens Marketing
Agreement by requiring their produce suppliers to sign this
Agreement."  Mr. Schwartz also commented, "Food safety is our
top priority.  This is another example of our commitment to work
with government, industry leaders, trade organizations and food
safety experts to continuously seek ways to improve and enhance
food safety for consumers."

Headquartered in Westlake Village, California, Dole Food
Company's -- http://www.dole.com/-- is a producer and
marketer of fresh fruit, fresh vegetables and fresh-cut flowers,
and markets a line of packaged foods.  The company has four
primary operating segments.  The fresh fruit segment produces
and markets fresh fruit to wholesale, retail and institutional
customers worldwide.  The fresh vegetables segment contains
operating segments that produce and market commodity vegetables
and ready-to-eat packaged vegetables to wholesale, retail and
institutional customers primarily in North America, Europe and
Asia.  The packaged foods segment contains several operating
segments that produce and market packaged foods, including
fruit, juices and snack foods.  Dole's fresh-cut flowers segment
sources, imports and markets fresh-cut flowers, grown mainly in
Colombia and Ecuador, primarily to wholesale florists and
supermarkets in the United States.

                        *    *    *

As rported in the Troubled Company Reporter on Jan. 31, 2007,
Moody's Investors Service downgraded the corporate family rating
of Dole Food Company, Inc. to B2 from B1, its probability of
default rating to B2 from B1, its senior secured bank credit
facilities to Ba3 from Ba2, its senior unsecured notes to Caa1
from B3, and its various shelf registrations to Caa1 from B3.
The outlook is stable.


PETROECUADOR: Setting Up Oil Refinery & Petrochemicals Project
--------------------------------------------------------------
Ecuadorian state-run oil firm Petroecuador will construct a
US$4.5-billion oil plant and petrochemicals project with ONGC
Videsh Ltd. and Venezuelan state oil Petroleos de Venezuela SA,
The Telegraph reports, citing Carlos Abad, Ecuador's ambassador
to India.

Mr. Abad said that Ecuador was seeking to strengthen its trade
ties with nations like India to lessen its dependence on the US,
The Telegraph notes.

The Telegraph underscores that Canadian firms account for 69% of
the total foreign direct investment in Ecuador.  Meanwhile, the
US account for 20%.

Mr. Abad told The Telegraph, "We want more companies from India
and China to invest in Ecuador, particularly in the oil, gas and
power generation sectors.  We have many companies from the US
and Canada and we now want firms from other parts of the world
to come to the country."

The Telegraph relates that Petroecuador signed a memorandum of
understanding with ONGC Videsh in July 2006 when Ecuadorian
minister of external affairs Francisco Carrion Mena visited
India.  The memorandum envisioned cooperation between the two
firms in developing and promoting:

          -- petroleum,
          -- gas,
          -- electricity,
          -- petrochemicals,
          -- hydrocarbon products, and
          -- petroleum research.

Under the agreement, ONGC Videsh and Petroecuador will conduct
exploration activities and bid for oil and gas blocks in Ecuador
and other Latin American nations through joint ventures, The
Telegraph states.

"Ecuador exports crude and imports refined petroleum. The
country has no refinery like Nigeria," Vinay Goenka, honorary
consul of Ecuador in Calcutta, told The Telegraph.

                      About ONGC Videsh

ONGC Videsh Ltd. is the overseas arm of Oil and Natural Gas
Corp. Ltd. aka ONGC.  It has acquired 15 properties in 14
foreign countries.

Headquartered in New Delhi, India, ONGC is an oil and gas
company engaged in exploration and production activities both
onshore and offshore.  The company is venturing out to other
areas, such as deepwater exploration and drilling, exploration
in frontier basins, marginal field development, optimization of
field development plan field recovery and other allied areas of
service sector.  The company owns and operates more than 11,000
kilometers of pipelines in India, including nearly 3,200
kilometers of sub-sea pipelines.  It has a 71.6% equity stake in
the Mangalore Refinery & Petrochemicals Limited (MRPL), and a
23% stake in the 364-kilometer long Mangalore-Hasan-Bangalore
product pipeline, connecting the refinery to Karnataka.  ONGC
has also ventured into coal bed methane and underground coal
gasification.  

                About Petroleos de Venezuela

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

                     About Petroecuador

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


PETROLEOS DE VENEZUELA: Building Oil Refinery with Petroecuador
---------------------------------------------------------------
Venezuela's state-owned oil company Petroleos de Venezuela SA
will construct a US$4.5-billion oil plant and petrochemicals
project with ONGC Videsh Ltd. and state oil Petroecuador, The
Telegraph reports, citing Carlos Abad, Ecuador's ambassador to
India.

Mr. Abad said that Ecuador was seeking to strengthen its trade
ties with nations like India to lessen its dependence on the US,
The Telegraph notes.

The Telegraph underscores that Canadian firms account for 69% of
the total foreign direct investment in Ecuador.  Meanwhile, the
US account for 20%.

Mr. Abad told The Telegraph, "We want more companies from India
and China to invest in Ecuador, particularly in the oil, gas and
power generation sectors.  We have many companies from the US
and Canada and we now want firms from other parts of the world
to come to the country."

The Telegraph relates that Petroecuador signed a memorandum of
understanding with ONGC Videsh in July 2006 when Ecuadorian
minister of external affairs Francisco Carrion Mena visited
India.  The memorandum envisioned cooperation between the two
firms in developing and promoting:

          -- petroleum,
          -- gas,
          -- electricity,
          -- petrochemicals,
          -- hydrocarbon products, and
          -- petroleum research.

Under the agreement, ONGC Videsh and Petroecuador will conduct
exploration activities and bid for oil and gas blocks in Ecuador
and other Latin American nations through joint ventures, The
Telegraph states.

"Ecuador exports crude and imports refined petroleum. The
country has no refinery like Nigeria," Vinay Goenka, honorary
consul of Ecuador in Calcutta, told The Telegraph.

                     About ONGC Videsh

ONGC Videsh Ltd. is the overseas arm of Oil and Natural Gas
Corp. Ltd. aka ONGC.  It has acquired 15 properties in 14
foreign countries.

Headquartered in New Delhi, India, ONGC is an oil and gas
company engaged in exploration and production activities both
onshore and offshore.  The company is venturing out to other
areas, such as deepwater exploration and drilling, exploration
in frontier basins, marginal field development, optimization of
field development plan field recovery and other allied areas of
service sector.  The company owns and operates more than 11,000
kilometers of pipelines in India, including nearly 3,200
kilometers of sub-sea pipelines.  It has a 71.6% equity stake in
the Mangalore Refinery & Petrochemicals Limited (MRPL), and a
23% stake in the 364-kilometer long Mangalore-Hasan-Bangalore
product pipeline, connecting the refinery to Karnataka.  ONGC
has also ventured into coal bed methane and underground coal
gasification.  

                     About Petroecuador

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

                 About Petroleos de Venezuela

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

                        *    *    *

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


PETROLEOS DE VENEZUELA: 1st Diesel Shipment To Arrive on Feb. 22
----------------------------------------------------------------
Ecuador will get its first shipment of diesel from Petroleos de
Venezuela on Feb. 22 to 24, Business News Americas reports,
citing a statement from Petroecuador.

Petroecuador's statement added that a second shipment will
arrive in mid-March, while the third delivery is expected on
March 22 to 24.

According to BNamericas, total shipments will be 660,000 barrels
with a market value of US$43.8 million.  The deliveries are in
accordance to the diesel-for-crude swap that was signed by
Venezuela and Ecuador last month.  The deal will mean at least
US$1.5 million in savings for Petroecuador.

Petroecuador's statement did not say when it will meet its part
in the bargain.

According to BNamericas, Ecuador is expected to send about
100,000 barrels per day of its trademark Napo crude for
processing at Petroleos de Venezuela's refineries.  

                     About PetroEcuador

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

               About Petroleos de Venezuela

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

                        *    *    *

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


* ECUADOR: Former Occidental Fields Declines Since Take Over
------------------------------------------------------------
Output at oilfields formerly operated by Occidental Petroleum
dwindles at the state's hands, Reuters reports.

According to Reuters, output was cut by 13% because of scarce
investment and operational difficulties.

Occidental's operating contract was revoked in May 2006 over
accusations that the oil company sold part of a block without
the state's approval and appointed a temporary Petroecuador unit
to oversee the output of the fields.  The American company filed
a suit with the World Bank's International Center for Settlement
of Investment Disputes seeking US$1 billion in compensation.

Citing Petroecuador's production reports, Reuters says that
output at the Block 15 Eden-Yuturi and Limoncocha fields, with
proven reserves of 522 million barrels, have dropped to 87,535
barrels per day from 100,718 bpd since May 2006.

"With a rapid natural decline, without drilling new wells and
without having proper electric equipment, it is easy to
understand why we are not able to maintain production," a senior
Petroecuador official told Reuters.  The official cited delays
in buying new machinery, which made it difficult to offset high
production of residual water and annual decline rates of 30%.

In addition, the official explained to Reuters that low
production level could also be attributed to lack of technical
and administrative capacity.

Another unnamed source told Reuters that the government plans to
inject US$700 million to boost output.

Ecuador, South America's fifth-largest oil producer, has an
output of around 530,000 bpd.

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




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


SAFETY-KLEEN: Awards IT Outsourcing Contract to ACS
---------------------------------------------------
Affiliated Computer Services, Inc., has been awarded an
information technology outsourcing contract from Safety-Kleen.  
The three-year contract is valued at US$3.3 million.

Under the terms of the agreement, ACS will maintain and support
Safety-Kleen's SAP R/3 environment, an enterprise resource
planning or ERP system.  ACS will provide integrated services
that include system and application management, monitoring, and
help desk.  The win underscores ACS' high profile in the market
for SAP services, a fast-growing segment of its full range of IT
solutions.

"The ACS team is a leader in their aptitude for proactive
management in the SAP arena," said Magnus Borg, SVP and CIO of
Safety-Kleen.  "Support is part of the program, however; we were
impressed with how they take initiative in identifying and
addressing issues before they become problems.  These
initiatives, combined with a strong track record of high
productivity and response times, will help to improve Safety-
Kleen's operational efficiencies across the board."

ACS will serve more than 4,000 SAP users at Safety-Kleen,
supporting diverse ERP modules such as order management,
finances and controlling, materials management, human resources,
and business warehouse.

Gary Gauba, President of ACS Systech Integrators, said that ACS'
ability to provide a dedicated SAP support team, its proactive
maintenance, and prowess in driving operational efficiencies
were key factors in its winning this contract.  "ACS has an
extraordinary level of SAP competence, combined with flexibility
and adaptability that stem from a business needs-driven
approach.  We look forward to a great partnership with Safety-
Kleen."

"ACS has built a strong reputation upon the reliable delivery of
world- class IT outsourcing services that offer impressive
levels of scalability," said Ann Vezina, ACS Executive Vice
President and Chief Operating Officer - Commercial.  "Our robust
support system ensures that we can adapt to Safety-Kleen's
changing needs with speed and intelligence.  ACS provides
exceptional solutions because we consider these elements of
flexibility and responsiveness vital to our philosophy of
service excellence."

                 About Affiliated Computer

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

                     About Safety-Kleen     

Safety-Kleen, a privately held company, is North America's
premier provider of industrial oil collection and re-refining,
parts cleaner services, and industrial waste management.
Safety-Kleen offers its customers a complete set of responsible
re-refining, cleaning, and environmental solutions through its
fully integrated branch network designed to collect, process,
recycle, re-refine, and dispose of a wide range of both
hazardous and non-hazardous waste streams.  The company has
approximately 4,500 employees serving hundreds of thousands of
customers in the United States, Canada and Puerto Rico.

                        *    *    *

As reported in the Troubled Company Reporter on Sept. 28, 2006,
in connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the Services - Contractor sector, the rating
agency revised its Corporate Family Rating for Safety-Kleen
HoldCo, Inc. to B2 from B1.

Moody's also revised its probability-of-default ratings and
assigned loss-given-default ratings on these loans facilities:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$100 million
   Senior Secured
   Revolver due 2012      B1       Ba3    LGD 2       27%

   US$230 million
   Senior Secured
   Term Loan B
   due 2013               B1       Ba3    LGD 2       27%

   US$65 million
   Senior Secured
   Pre-Funded Letter
   Of Credit due 2013     B1       Ba3    LGD 2       27%


TECO ENERGY: Moody's Reviews Low B Ratings & May Upgrade
--------------------------------------------------------
Moody's Investors Service placed the debt ratings of TECO Energy
Inc. under review for possible upgrade.  Ratings placed under
review include TECO's Ba1 Corporate Family Rating and Ba2 senior
unsecured debt.  In addition, Moody's affirmed TECO's SGL-1
rating and the ratings of Tampa Electric Company (Baa2 senior
unsecured).

The review is prompted by the following:

   1) Moody's expectation of a more consistent financial
      performance in 2007 and going forward as business risk and
      cash flow volatility have been reduced following the
      company's exit from merchant generation;

   2) Lower long-term debt at the parent company and a
      manageable US$411 million due at the parent for the
      remainder of 2007 (including TECO guaranteed debt at TECO
      Transport), US$300 million of which is expected to be paid
      off at maturity in May;

   3) A management strategy focusing on TECO's core regulated
      Florida utility operations, in addition to several other
      cash flow generating businesses, including TECO Coal, TECO
      Transport, and TECO Guatemala;

   4) Consolidated financial results that are projected to be
      closer to investment grade levels in 2007 for a utility
      holding company with an overall risk category in the
      medium range as defined in Moody's rating methodology for
      global regulated electric utilities.

   5) Reduced synfuel related cash flow volatility because of
      lower oil prices and the expiration of synfuel tax credits
      at the end of 2007.  TECO has also substantially hedged
      most of its synfuel cash benefit for 2007, limiting the
      impact that a potential phaseout of the tax credits could
      have on cash flow because of higher oil prices.

The review will focus on TECO's 2006 financial results; the
outlook and projected performance for 2007 and future years,
including:

   a) the likelihood that the company will retire US$300 million
      of parent company debt in May;

   b) the possible sale of its TECO Transport subsidiary;

   c) the potential for US$500 million of additional parent
      company debt retirements in the years 2008 through 2010;
      and

   d) the company's long-term financing plans to meet growing
      capital expenditure needs for environmental compliance and
      generation expansion at Tampa Electric.

Despite the expected use of a substantial amount of current cash
at TECO to pay off debt this coming May, the affirmation of
TECO's SGL-1 rating reflects the expectation that TECO's
liquidity will remain strong throughout 2007.

The affirmation of Tampa Electric's ratings reflects the
company's stronger coverage metrics in 2006 after fuel cost
deferrals weakened credit metrics in 2005 and financial measures
that are consistent with a mid-to-high Baa rating in accordance
with Moody's rating methodology for global regulated electric
utilities.  These include a ratio of cash from operations prior
to changes in working capital plus interest to interest of 4.3
times and a ratio of cash from operations prior to changes in
working capital to debt of 23% for the twelve months ended
Sept. 30, 2006, which are expected to remain relatively stable
going forward.  Tampa Electric's ratings are constrained by
higher operating expenses, a large capital expenditure program,
required equity contributions from the parent to maintain its
capital structure, and the relatively high level of debt and
below investment grade rating at the parent company.

Ratings placed under review for possible upgrade include TECO
Energy's Ba1 Corporate Family Rating and Ba2 senior unsecured
debt.

TECO Energy, Inc. is a diversified energy company headquartered
in Tampa, Florida and the parent company of Tampa Electric
Company.  Other subsidiaries are engaged in waterborne
transportation, coal and synthetic fuel production and electric
generation and distribution in Guatemala.


TECO ENERGY: S&P Says Likely Transport Sale Won't Affect Ratings
----------------------------------------------------------------
Standard & Poor's Ratings Services said that TECO Energy Inc.'s
(BB/Stable/B-1) announcement that it is exploring the sale of
TECO Transport is slightly favorable for the company's credit
quality but doesn't affect the rating at this time.  S&P expects
TECO Energy to use the sale proceeds to reduce parent company
debt in line with the company's stated debt reduction goals.  
However, the certainty of the sale, the amount of sale proceeds,
and timing of the receipt of the proceeds is uncertain.

TECO Energy, Inc. is a diversified energy company headquartered
in Tampa, Florida and the parent company of Tampa Electric
Company.  Other subsidiaries are engaged in waterborne
transportation, coal and synthetic fuel production and electric
generation and distribution in Guatemala.




=========
H A I T I
=========


* HAITI: Will Receive US$20 Million from US to Create Jobs
----------------------------------------------------------
US Under Secretary of State Nicholas Burns told Reuters that the
country will give Haiti US$20 million to create jobs in Cite
Soleil, a place inhabited by very poor Haitians.

Reuters relates that the US also asked that the United Nations
peacekeeping force in Haiti will be extended for a year.

Mr. Burns told the press that there was an agreement among a
group of 15 nations and seven international organizations aiding
Haiti to push for a 12-month extension of the UN military
mission in the country.

Reuters notes that the military mission ends on Feb. 15.  The UN
force has been in Haiti since after former president Jean-
Bertrand Aristide was stripped of his position in an armed
rebellion in February 2004.

China was against the extension of the UN mission in Haiti at
first because of Haitian ties to Taiwan, Reuters states, citing
UN Security Council diplomats.  China has changed it mind,
saying that the mission could be extended to six months.  The
Asian country also said that the council should monitor more
closely its peacekeeping missions.

"The presence of that mission is essential for stability and
peace and to deter crime in Haiti and to renew it for anything
less than 12 months would not be right," Mr. Burns commented to
Reuters.

                        *    *    *

Haiti is currently seeking international help to spur economic
development in the country.  President Rene Preval submitted
that the country's poverty, widespread unemployment and the
dilapidated state of infrastructure will be alleviated with
increased international assistance.




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


* HONDURAS: President Inaugurates Bagasse-Fired Generation Plant
----------------------------------------------------------------
Honduran President Manuel Zelaya Rosales has opened a 14-15MW
bagasse-fired generation plant at sugar company Azucarera
Chumbagua, Business News Americas reports, citing the
presidential Web site.  

The statement added that the plant will supply the company and
the local community, BNamericas says.  Azucarera operates in the
municipality of San Marcos, Santa Barbara department.

                        *    *    *

Moody's Investor Service assigned these ratings on Honduras:

                     Rating     Rating Date

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




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


ADVANCED MARKETING: Wells Fargo Won't Object to PGW Payment
-----------------------------------------------------------
Wells Fargo Foothill, Inc., as DIP loan agent, tells the United
States Bankruptcy Court for the District of Delaware that it
doesn't object to Advanced Marketing Services Inc. and its
debtor-affiliates' request to:

   * pay the prepetition claims of Bailor Publishers of
     Publishers Group West, Inc.; and

   * pay up to US$12,000,000 in PGW claims, if and as approved
     by the lenders under the DIP Loan Agreement.

As reported in the Troubled Company Reporter on Jan. 10, 2007,
the Court authorized the Debtors, on an interim basis, to dip
their hands into the DIP financing facility arranged by
Foothill.

As reported in the Troubled Company Reporter on Jan. 15, 2007,
the Debtors had asked the Court for authority to pay, in the
ordinary course of business, up to US$12,000,000 in prepetition
claims of publishers who supply goods and credit critical to the
continued operation of PGW's business.

Kimberly E.C. Lawson, Esq., at Reed Smith, LLP, in Wilmington,
Delaware, representing Wells Fargo, says that, nevertheless,
Foothill reserves all of its rights to object to payment of the
PGW Publisher claims on all grounds in the event that the
Debtors seek to make payments contrary to the terms of the DIP
Loan Agreement and without Wells Fargo's express written
consent.

The Debtors wanted to make the payments to minimize disruption
and possible "domino effect" of further insolvencies that could
be caused if PGW immediately ceased all payments with respect to
the PGW Publisher Claims.

                  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 US$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)


ADVANCED MARKETING: Wants to Employ Capstone as Fin'l Advisor
-------------------------------------------------------------
Advanced Marketing Services and its debtor-affiliates ask the
U.S. Bankruptcy Court for the District of Delaware Court for
permission to employ Capstone Advisory Group LLC as their
financial advisors.

Specifically, the Debtors will look to Capstone to:

   (a) analyze and challenge the Debtors' short-term and long-
       term cash flow forecasts;

   (b) assist management, as appropriate, in developing
       corresponding liquidity analysis;

   (c) analyze the Debtors' business plan and any alternative
       business plans suggested by the Debtors;

   (d) assist the Debtors and their advisors in identifying and
       evaluating strategic financial and restructuring
       alternatives;

   (e) support or assist investment banks of the Debtors in
       their efforts to sell or restructure the business entity;

   (f) act as a liaison between the Debtors and their investment
       bankers;

   (g) assist in providing data and information requested by
       Houlihan, Lokey, Howard & Zukin Capital, Inc., in its
       efforts to market and refinance the Debtors;

   (h) assist Houlihan Lokey in its efforts to market or
       refinance the Debtors;

   (i) assist Houlihan, Lokey in identifying and executing an
       alternative transaction that best meets the objectives of
       the Debtors' and their estates; and

   (j) perform other tasks as may be requested by the Debtors
       from time to time.  

Mark D. Collins, Esq., at Richards, Layton & Finger, PA, in
Wilmington, Delaware, relates that Capstone specializes in
providing creative value-added solutions for stakeholders,
lenders and investors dealing with distressed and fraud
situations; for parties in commercial disputes; and, for lenders
and investors evaluating capital transactions.

Capstone has provided services to the Debtors since May 2006.  
At that time, Capstone was hired, through the Debtors' counsel,
O'Melveny & Myers, LLP, to review the Debtors' short-term and
long-term financial forecasts, and assist the Debtors in
identifying and evaluating restructuring alternatives.

The Debtors are also seeking to employ Focus Management Group
U.S.A., Inc., as their financial advisors.  Mr. Collins says
that Focus was retained prior to Capstone and Focus' familiarity
with the Debtors' books, records and financial reporting has
aided Capstone's provision of financial analysis and advisory
services.  Furthermore, the Debtors, Focus and Capstone have
conferred and will continue to do so to ensure there is no
duplication of effort or overlap of work between and among Focus
and Capstone in order to ensure that the Debtors estates receive
their maximum value.   

"Focus will be working on a number of projects either in
conjunction with Capstone or under the supervision of Capstone,"
Mr. Collins says.

The Debtors will pay Capstone hourly rates on actual hours
worked at Capstone's standard hourly rates in effect when the
services are rendered.  Capstone's hourly rates are:

   Designation                    Hourly Rate
   -----------                    -----------
   Executive Directors          US$505 - $595
   Staff                        US$275 - $475
   Support                       US$90 - $200
   
The Capstone employees that are expected to be directly
responsible for the engagement and their hourly rates are:

   * Mark Rohman, Capstone Executive Director -- US$595
   * Monique Atkins                           -- US$450

Mr. Collins notes that there will be a fee awarded to Capstone
upon the completion of a successful sale or refinancing of the
Debtors, equal to 30% of any transaction fee or financing fee
paid by the Debtors to Houlihan Lokey.                

In addition, Mr. Collins states that Capstone will be reimbursed
for all reasonably incurred out-of-pocket expenses in connection
with the rendering of services.  These include travel, lodging,
costs of reproduction, reasonable out-of-pocket counsel fees and
other direct expenses.

The Debtors will also indemnify Capstone for its services.

Mr. Rohman assures the Court that Capstone and its partners and
associates do not have any connection with or any adverse
interest to the Debtors, their creditors, or any other parties-
in-interest.

                  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 US$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)


BALLY TOTAL: Launching Health Club in Alexandria This Year
----------------------------------------------------------
Bally Total Fitness Holding Corp. will launch a health-club at
6200 Little River Turnpike in Alexandria in Northern Virginia
this year, Washington Business Journal reports.

According to Business Journal, the new club will provide the
standard fitness equipment and programs.  It will also have a
pool, Jacuzzi, martial arts studio, retail store and juice bar.

Bally Total told Business Journal that it would launch five
clubs in 2007.  Three of them will replace existing clubs.

Business Journal relates that Bally Total has four other clubs
in Northern Virginia, six in suburban Maryland and one in the
District.

Bally Total hasn't reported a yearly profit since 2002.  It
raised US$284 million in new loans in October 2006, an amount it
is using to refinance debt and fund expansion.  Bally Total had
said before securing the new financing that without creditor
concessions it would have inadequate liquidity to operate,
Business Journal notes.

Bally Total's members decreased 2% to 3.6 million in the fiscal
third quarter in 2006, compared with the same quarter in 2005.  
It posted a US$5.7-million net loss from continuing operations,
Business Journal states.

Based in Chicago, Illinois, Bally Total Fitness Holding Corp.
(NYSE: BFT) -- http://www.Ballyfitness.com/-- is a commercial
operator of fitness centers in the U.S., with nearly 390
facilities and 30 franchises and joint ventures located in 29
states, Mexico, Canada, Korea, China and the Caribbean.  Bally
also sells Bally-branded apparel, nutritional products, fitness-
related merchandise and its licensed portable exercise equipment
is sold in more than 10,000 retail outlets.

                        *    *    *

As reported in the Troubled Company Reporter on Oct. 19, 2006,
Moody's Investors Service affirmed the Caa1 rating on Bally
Total Fitness Holding Corporation's US$235 million 10.5% senior
unsecured notes (guaranteed) due 2011 and the Caa3 rating on the
company's US$300 million 9.875% senior subordinated notes due
2007.  Moody's said the rating outlook remains negative.


BEARINGPOINT INC: S&P Withdraws Ratings & Removes CreditWatch
-------------------------------------------------------------
Standard & Poor's Ratings Services withdrew its 'B-' corporate
credit rating and 'CCC+' subordinated debt ratings on
BearingPoint Inc. and removed them from CreditWatch, where they
were placed March 18, 2005.

"While BearingPoint continues to operate its business and
recently filed its 2005 Form 10-K and the related 2005 Forms 10-
Q, it has not completed its 2006 filings, thus neither its
operations nor its financial performance can be assessed
properly," said Standard & Poor's credit analyst Philip Schrank.

BearingPoint has global locations in Australia, Austria, Brazil,
China, France, India, Indonesia, Japan, Mexico, Portugal,
Singapore, Thailand, and the United Kingdom, among others.


CELESTICA INC: 2,000 Mexican Workers Loses Jobs
-----------------------------------------------
Celestica Inc. has reduced output of complex components in its
four factories in Monterrey, Mexico, as part of its
restructuring scheme to cut back on losses.

As widely reported, Celestica's Mexican plants were losing
millions of dollars every month due to inventory and execution
difficulties.  The losses in Mexico greatly affected the
electronics manufacturer's fourth quarter results.  It reported
fourth quarter losses of about US$60.8 million.

As a result of production cuts, 2,000 workers were dismissed
from their jobs.  Lisa Muenkel, Celestica Americas division
spokesperson, told Business Americas that the displaced workers
were all contractual.  On a positive note, Ms. Muenkel added
that they would soon be recalled because Celestica has recently
won a "major customer, which continues to have confidence in the
Monterrey facility."

The Mexican plants manufacture flat screen televisions, mobile
phone parts, and X-Box systems.

The company appointed Guy Delisle to lead turn around
Celestica's operations in Mexico.  He's been with the
electronics manufacturing services industry for more than 20
years.

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

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.


HOME PRODUCTS: Court Approves Greystone & Branford as Auctioneer
----------------------------------------------------------------
The Honorable Christopher S. Sontchi of the U.S. Bankruptcy
Court for the District of Delaware authorized Home Products
International Inc. and Home Products International-North America
Inc. to employ Greystone Private Equity LLC and Branford
Auctions LLC as their auctioneer.

Greystone and Branford will conduct an auction to sell certain
assets located in El Paso, Tex., Chicago, Ill., and other
locations free and clear of all liens claims, interests, and
encumbrances.

The auctioneer will guarantee that the proceeds of the sale will
be at least US$360,000.  If the proceeds are below that amount,
the auctioneer will pay the guaranteed amount.

If the proceeds will exceed the guaranteed amount, the proceeds
will be distributed: first, US$65,000 will go to the auctioneer,
and second, the remaining 90% will go to the Debtors and the
remaining 10% will go to the auctioneer.

The Debtors considered proposals from three other auctioneers
and determined that Greystone and Branford's offer is the most
favorable.

A full-text copy of the auctioneer agreement is available for
free at http://ResearchArchives.com/t/s?197c

Greystone and Branford assured the Court that their firms are
disinterested pursuant to Section 101(14) of the Bankruptcy
Code.

                    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).  Ronald
Barliant, Esq., and Kathryn A. Pamenter, Esq., at Goldberg Kohn,
Bell, Black, Rosenbloom & Moritz, Ltd., and Mark D. Collins,
Esq., and Michael J. Merchant, Esq., at Richards, Layton &
Finger P.A. represent 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.  The Debtors' exclusive period to file a chapter
11 plan of reorganization expires on April 18, 2007.


HOME PRODUCTS: Court Approves Sale of Assets Through Auction
------------------------------------------------------------
The Honorable Christopher S. Sontchi of the U.S. Bankruptcy
Court for the District of Delaware authorized Home Products
International Inc. and Home Products International-North America
Inc. to sell certain assets free and clear of all liens claims,
interests, and encumbrances through an auction.

The assets are located in El Paso, Tex., Chicago, Ill., and
other locations

Greystone Private Equity LLC and Branford Auctions LLC will
conduct the auction.

A full-text copy of the assets to be auctioned are available for
free at http://ResearchArchives.com/t/s?1959

                      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).  Ronald
Barliant, Esq., and Kathryn A. Pamenter, Esq., at Goldberg Kohn,
Bell, Black, Rosenbloom & Moritz, Ltd., and Mark D. Collins,
Esq., and Michael J. Merchant, Esq., at Richards, Layton &
Finger P.A. represent 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.  The Debtors' exclusive period to file a chapter
11 plan of reorganization expires on April 18, 2007.


GRUPO IUSACELL: Court Sets Fairness Hearing on Feb. 19
------------------------------------------------------
Grupo Iusacell, S.A. de C.V. disclosed that in connection with
the concurso mercantil proceeding pending in Mexico relating to
Grupo Iusacell Celular, S.A. de C.V. before the Seventh Civil
District Judge of the First Circuit, Enrique Estrella Menendez,
the Conciliator designated for the proceeding by the Federal
Institute of Specialists in Concursos Mercantiles, provides
notice that

   (i) the creditors' agreement pursuant to Title Five of the
       Law of Concursos Mercantiles setting forth the terms and
       conditions of the restructuring of the outstanding
       indebtedness of the company is available for the review
       of all recognized creditors of the company and

  (ii) a fairness hearing open to all recognized creditors of
       the company to provide a forum for creditors to present
       any comments or objections to the Creditor's Agreement,
       will be held on Feb. 19, 2007 at 12:00 p.m. at:

                 Salon Granada
                 Nikko Hotel Mexico
                 Campos Eliseos No. 204, Colonia Chapultepec
                 Mexico, D.F. 11560                         

Recognized creditors of Iusacell Celular (including holders of
any US$150 million of 10.00% Senior Notes due 2004 and any
US$190 million of Tranche A Bank Loans, US$76 million of Tranche
B Bank Loans of Iusacell Celular) may request further
information on the hearing (including a copy of the Creditors'
Agreement) from:

         Enrique Estrella Menendez
         Calle Etla No. 19, Colonia Hipodromo Condesa
         Mexico, D.F., 06100
         E-mail: concurso-iusa@hotmail.com

Any objections or comments to the Creditor's Agreement may be
presented in person by the creditor or by a duly appointed
attorney-in-fact at the fairness hearing or otherwise must write
a notice and send it to the Conciliator at the specified address
by Feb. 19, 2007.  The notice must contain:

   (i) the name and address of the creditor and its claims
       against the company and

  (ii) the grounds for the objections or comments in as specific
       a manner as possible.

The Creditors' Agreement has already received the support of
approximately 97% of the holders of the Existing Debt of
Iusacell Celular and its presentment by the Conciliator to
recognized creditors is one of the final steps in what Iusacell
hopes to be the successful conclusion of its concurso mercantil
proceeding.

Headquartered in Mexico City, Mexico, Grupo Iusacell, SA de CV
(BMV: CEL) -- http://www.iusacell.com/-- is a wireless cellular
and PCS service provider in Mexico with a national footprint.
Independent of the negotiations towards the restructuring of its
debt, Grupo Iusacell reinforces its commitment with customers,
employees and suppliers and guarantees the highest quality
standards in its daily operations offering more and better voice
communication and data services through state-of-the-art
technology, including its new 3G network, throughout all of the
regions in which it operate.

As of Dec. 31, 2005, Grupo Iusacell's stockholders' deficit
widened to MXN2,076,000,000 from a deficit of MXN1,187,000,000
at Dec. 31, 2004.

Grupo Iusacell filed for bankruptcy protection on June 18 under
Mexican Law to prevent creditors from disrupting its debt
restructuring talks.  On July 14, 2006, Gramercy Emerging
Markets Fund, Pallmall LLC and Kapali LLC, owed an aggregate
amount of US$55,878,000 filed an Involuntary Chapter 11 Case
against Grupo Iusacell's operating subsidiary, Grupo Iusacell
Celular, SA de CV (Bankr. S.D.N.Y. Case No. 06-11599).  Alan M.
Field, Esq., at Manatt, Phelps & Phillips, LLP, represents the
petitioners.  Iusacell Celular then filed for bankruptcy
protection under Mexican Law on July 18, 2006.


LIBBEY INC: Declares US$0.025 Per Share Quarterly Dividend
----------------------------------------------------------
Libbey Inc.'s board of directors declared the company's
quarterly cash dividend of US$0.025 cents per share.  The
dividend will be paid on March 6, 2007, to shareholders of
record as of Feb. 20, 2007.  As of Feb. 2, 2007, Libbey had
14,353,413 shares outstanding.

Based in Toledo, Ohio, Libbey Inc. -- http://www.libbey.com/
-- operates glass tableware manufacturing plants in the United
States in Louisiana and Ohio, in Mexico, Portugal and the
Netherlands.

                        *    *    *

Standard & Poor's Ratings Services assigned on May 16, 2006, its
'B' corporate credit rating to Libbey Inc.  At the same time,
Standard & Poor's assigned its 'B' senior unsecured debt rating
to the company's proposed US$400 million of senior unsecured
notes due 2014, which will be issued by the company's wholly
owned subsidiary Libbey Glass Inc. and guaranteed on a senior
basis by Libbey Inc.  Standard & Poor's said the outlook is
stable.


NORTEL NETWORKS: Peter Currie to Step Down as EVP & CFO
-------------------------------------------------------
Peter Currie will step down as Executive Vice-President and
Chief Financial Officer of Nortel Networks Corp. and Nortel
Networks Limited, effective April 30, 2007.

After that date, Mr. Currie will continue to provide advice and
assistance to Nortel Networks to ensure a smooth transition.  
The company has initiated a search to fill the position.

"I want to thank Peter for his very significant contribution to
Nortel over the past two years," Nortel president and chief
executive officer Mike Zafirovski said.

"Peter has successfully steered Nortel through many difficult
financial issues and, in the process, has enhanced the company's
governance.  In addition, he leaves behind a very strong finance
organization led by a team of consummate professionals.  On a
personal level, I will miss his counsel and sound judgment.  I
and the entire Nortel team want to wish him well as he takes on
new challenges."

"I believe that I have achieved at Nortel what I returned to
accomplish.  We have transformed the finance organization,
significantly strengthened internal controls, and improved the
balance sheet," Mr. Currie said.

"I look forward now to pursuing other challenges and I am
confident in the future success of Nortel.  I want to thank my
colleagues for their support and collaboration over the past few
years."

                    About Nortel Networks

Based in Ontario, Canada, Nortel Networks Corp. (NYSE/TSX: NT)
-- http://www.nortel.com/-- is a recognized leader in  
delivering communications capabilities that enhance the human
experience, ignite and power global commerce, and secure and
protect the world's most critical information.

Serving both service provider and enterprise customers, Nortel
delivers innovative technology solutions encompassing end-to-end
broadband, Voice over IP, multimedia services and applications,
and wireless broadband designed to help people solve the world's
greatest challenges.  Nortel does business in more than 150
countries, including in Indonesia, Australia, China, Mexico,
Philippines, and Thailand.

                        *     *     *

As reported in the Troubled Company Reporter on Oct. 5, 2006,
Moody's Investors Service upgraded its B3 Corporate Family
Rating for Nortel Networks Corp. to B2.

Dominion Bond Rating Service confirmed the long-term ratings of
Nortel Networks Capital Corporation, Nortel Networks
Corporation, and Nortel Networks Limited at B (low) along with
the preferred share ratings of Nortel Networks Limited at Pfd-5
(low).  All trends are Stable.

DBRS confirmed B (low) Stb Senior Unsecured Notes; B (low) Stb
Convertible Notes; B (low) Stb Notes & Long-Term Senior Debt;
Pfd-5 (low) Stb Class A, Redeemable Preferred Shares; and Pfd-5
(low) Stb Class A, Non-Cumulative Redeemable Preferred Shares.


VITRO SA: Nippon Sheet Glass Unit Sues Company
----------------------------------------------
Pilkington, Japanese glassmaker Nippon Sheet Glass' unit in the
United Kingdom, told Reuters that it had launched legal action
against Vitro SA de CV to suspend the latter's plan to merge its
Vitro Plan unit into Vimexico.

Pilkington said in a statement that it owns a 35% stake in Vitro
Plan.

Pilkington told Reuters that it was not consulted by Vitro on
the merger, which would dilute its stake to 8.2%.

"Vitro's action shows blatant disregard for the rights of
Pilkington in connection with this fundamental corporate change
and breaches Vitro Plan's by-laws," Pilkington lawyers
Cervantes, Aguilar-Alvarez y Sainz said in the statement.

Headquartered in Nuevo Leon, Mexico, Vitro, S.A. de C.V. --
http://www.vitro.com/-- (NYSE: VTO; BMV: VITROA), through its
subsidiary companies, is one of the world's leading glass
producers.  Vitro is a major participant in three principal
businesses: flat glass, glass containers and glassware.  Its
subsidiaries serve multiple product markets, including
construction and automotive glass; food and beverage, wine,
liquor, cosmetics and pharmaceutical glass containers; glassware
for commercial, industrial and retail uses.  Vitro also produces
raw materials and equipment and capital goods for industrial
use, which are vertically integrated in the Glass Containers
business unit.

Founded in 1909, Monterrey, Mexico-based Vitro has joint
ventures with major world-class partners and industry leaders
that provide its subsidiaries with access to international
markets, distribution channels and state-of-the-art technology.
Vitro's subsidiaries have facilities and distribution centers in
eight countries, located in North, Central and South America,
and Europe, and export to more than 70 countries worldwide.

                        *    *    *

As reported in the Troubled Company Reporter on Mar. 27, 2006,
Standard & Poor's Ratings Services lowered its long-term local
and foreign currency corporate credit ratings assigned to glass
manufacturer Vitro SA de CV and its glass containers subsidiary
Vitro Envases Norteamerica SA de CV (Vena) to 'B-' from 'B'.

Standard & Poor's also lowered the long-term national scale
corporate credit rating assigned to Vitro to 'mxBB+' from
'mxBBB-' with negative outlook.

Standard & Poor's also lowered the rating assigned to Vitro's
notes due 2013 and Servicios y Operaciones Financieras Vitro SA
de CV notes due 2007 (which are guaranteed by Vitro) to 'CCC'
from 'CCC+'.  Standard & Poor's also lowered the rating assigned
to Vena's notes due 2011 to 'B-' from 'B'.  




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


* NICARAGUA: Complains of Ecuador-European Union Banana Dispute
---------------------------------------------------------------
Nicaragua's government has complained about the slow progress of
Ecuador's banana conflict with the European Union, Fresh Plaza
reports.

According to Fresh Plaza, Nicaragua will benefit from the banana
import tariff reduction of EUR176 per metric ton.

Fresh Plaza underscores that Nicaragua had hoped that the
negotiations between Ecuador and the European Union, which were
part of the consultation period that has been concluded, would
have led to a solution.  

However, no agreement was reached regarding the import tariff
and now Nicaragua is considering joining in Ecuador's complaint
at the World Trade Organization, the report says.

Colombia, Panama, Honduras and the US already joined Ecuador in
the complaint, Fresh Plaza 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 N A M A
===========


* PANAMA: Asep Orders Cable & Wireless Rates Reduction
------------------------------------------------------
Asep, Panamanian telecoms regulator, said in a statement that it
has ordered Cable and Wireless Panama to decrease its per minute
rates to its mobile phone from fixed, public or semi-public
phones.

Business News Americas relates that Asep adjusts rates every six
months to make sure that users receive a just rate.  

According to BNamericas, Asep's order will bring down rates of
calls from residential or commercial fixed line phones to Cable
and Wireless mobile phones by 25% to US$0.16 per minute.  Calls
from a public phone to a Cable and Wireless mobile phone will
drop 15.8% to US$0.15.

Asep is also considering reductions for Movistar Panama for
fixed line calls arriving to the Movistar network, BNamericas
states.

                        *    *    *

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




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


* PERU: May Start Bilateral Free Trade Accord Talks in February
---------------------------------------------------------------
Peru's agriculture minister Juan Jose Salazar told Embassy
Newspaper Online that the country could begin negotiating for a
bilateral free trade pact with Canada this month.

Discussion would start when Canadian Prime Minister Stephen
Harper agrees holding it in February, Embassy Newspaper notes,
citing Minister Salazar.

Minister Salazar told Embassy Newspaper that Peru has great
expectations in reaching an agreement with Canada, having
conducted initial evaluations into the benefits of the free
trade deal.

The Peruvian minister commented to Embassy Newspaper that his
visit in Canada was the first a political gesture, as Peru wants
to be closer to Canada, both politically and economically.  The
government is aware of:

          -- the Canadian market's significance for Peruvian
             exports,

          -- the potential benefits of a bilateral free trade
             agreement, and

          -- how co-operation in critical areas can be
             consolidated and improved.

Minister Salazar signed in Quebec an accord with an agricultural
financing institution to let Peru receive assistance in areas
like geodesy, cadastre, land property rights and insurance,
Embassy Newspaper says.  Peru will select a "pilot region" in
Peru in the next 60 days.  It will implement programs similar to
those in Quebec within a year.  The initiatives are aimed at
pushing forward the transition in agriculture from subsistence
models to export competitiveness in a free trade context.

Embassy Newspaper emphasizes that with a bilateral investments
protection accord being implemented, Canada's investments in
Peru are estimated at around US$5 billion, particularly in the
mining sector.  Over 80 Canadian firms are conducting mining
exploration operations in Peru.

Minister Salazar told Embassy Newspaper that it is state policy
to secure those investments, although in the past some Canadian
extractive industries had breached laws and have had a poor
track record in pollution.

Minister Salazar has been involved in evaluations of Canadian
entities and was very pleased with the results.  He commented to
Embassy Newspaper that the local communities have agreed to
mining activities as they have found great social support
through the firms' corporate social responsibility initiatives
and their activities are compatible with best environmental
practices and agriculture.

                        *    *    *

As reported in the Troubled Company Reporter on Nov. 22, 2006,
Standard & Poor's Ratings Services raised its long-term foreign
currency sovereign credit rating on the Republic of Peru to
'BB+' from 'BB' and its long-term local currency sovereign
credit rating to 'BBB-' from 'BB+'.  Standard & Poor's also
raised its short-term local currency sovereign credit rating to
'A-3' from 'B', and affirmed its 'B' short-term foreign currency
sovereign credit rating on the republic.  The outlook on the
ratings was revised to stable from positive.  Standard & Poor's
also raised its assessment of the risk of transfer and
convertibility to 'BBB' from 'BBB-'.


* PERU: To Exclude Official Reserves from Amazon Oil Concessions
----------------------------------------------------------------
The Peruvian government is revising three rainforest oil
concessions to exclude official reserves intended to protect
some of the last native Amazonian populations still living in
isolation received a warm welcome from indigenous and
environmental organizations.

Meanwhile, Peru's human rights ombudsman has publicly launched
an independent investigation of all 11 new Amazonian oil
concessions being auctioned by Perupetro, Peru's state-owned oil
company, to ascertain whether they infringe the rights of
indigenous communities and violate national laws.

Both measures follow heavy pressure from Peruvian indigenous
leaders as well as environmental and human rights groups, who
attended Perupetro's presentation to US investors in Houston
last week.

AIDESEP, an umbrella group representing indigenous communities
from the Peruvian Amazon, has repeatedly warned that contact
with outsiders could cause epidemics and psychological trauma.  
The organization greeted the government's announcement
positively but warned that another four concessions still
intrude on proposed reserves for indigenous communities living
in isolation.

The three concessions that will be redrawn are Blocks 132 and
138, both in the central Ucayali region of Peru's vast tropical
rainforest territories, and Block 133 in the southern Madre de
Dios region.  Those three concessions intrude on the State
Reserves of Murunahua, Isconahua and Madre de Dios respectively.

Separately, the Peruvian government will allow a commission,
from INDEPA, a government agency established to promote the
culturally appropriate development of indigenous Peruvians and
Afro-Peruvians, 30 days to present a report on whether isolated
native communities live in areas covered by four other
concessions.

Lily la Torre, a leading Peruvian indigenous rights lawyer,
said, "This is a positive development from the Peruvian
government.  Nevertheless, this decision simply demonstrates
respect for human rights, legal norms and the constitution of
our country, which all Peruvians and investors should already
expect the government to uphold."

In total, Perupetro is tendering 11 Amazonian blocks, covering
approximately 22 million acres of highly biodiverse, intact
primary tropical rainforest.  In none of the blocks has
Perupetro obtained Free, Prior and Informed Consent, an
internationally recognized human rights benchmark intended to
protect the rights of indigenous communities.

                        *    *    *

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


ADELPHIA COMMS: Inks Pact Resolving Wilmington Trust's Claims
-------------------------------------------------------------
The Bank of New York is the successor indenture trustee for the
10.625% Senior Notes due Nov. 15, 2006, issued by Olympus
Communications, L.P., and Olympus Capital Corporation, under an
indenture dated Nov. 12, 1996.

On Jan. 8, 2004, BNY filed two Claim Nos. 12548 against
Olympus Communications and 12549 against Olympus Capital for
principal and interest, indenture trustee fees and expenses and
indemnification owed under the Olympus Parent Notes.

Documents filed with the Court disclose that Wilmington Trust
Company is currently the indenture trustee with respect to the
Olympus Parent Notes.

Pursuant to Adelphia Communications, Inc. and its debtor-
affiliates' First Modified Fifth Amended Chapter 11 Plan of
Reorganization, the Olympus Notes Claims will be deemed allowed
in the aggregate amount of US$212,986,111, comprising:

    -- US$200,000,000 representing principal; and

    -- US$12,986,111 representing interest accrued through the
       Petition Date.

The Plan provides for:

     * the payment of Case Contract Interest on account of the
       Olympus Notes Claims;

     * the allowance and payment of Olympus Fee Claims; and

     * the allowance of the Trustee Fee Claims and
       indemnification rights of Wilmington.

Pursuant to the Plan's provisions, the ACOM Debtors desire to
clean up the claims register maintained in their Chapter 11
cases with respect to the Olympus Notes Claims without altering
the substantive rights or claims of the holders of those claims.

In a stipulation approved by the U.S. Bankruptcy Court for the
Southern District of New York

In the Court-approved stipulation, the ACOM Debtors and
Wilmington Trust agree that:

   (a) Claim No. 12548 will be allowed for US$212,986,111, in
       aggregate, and will be deemed filed against Olympus
       Communications and Olympus Capital Corporation; and

   (b) Claim No. 12549 will be disallowed and expunged.

The Stipulation will not become effective until the Effective
Date of the Plan, and will be deemed null and void and without
force and effect if the Effective Date does not occur.

                    About Adelphia Comms

Based in Coudersport, Pa., Adelphia Communications Corp.
(OTC: ADELQ) -- http://www.adelphia.com/-- is a cable  
television company.  Adelphia serves customers in 30 states and
Puerto Rico, and offers analog and digital video services,
Internet access and other advanced services over its broadband
networks.  The Company and its more than 200 affiliates filed
for Chapter 11 protection in the Southern District of New York
on June 25, 2002.  Those cases are jointly administered under
case number 02-41729.  Willkie Farr & Gallagher represents the
Debtors in their restructuring efforts.  PricewaterhouseCoopers
serves as the Debtors' financial advisor.  Kasowitz, Benson,
Torres & Friedman, LLP, and Klee, Tuchin, Bogdanoff & Stern LLP
represent the Official Committee of Unsecured Creditors.

Adelphia Cablevision Associates of Radnor, L.P., and 20 of its
affiliates, collectively known as Rigas Manged Entities, are
entities that were previously held or controlled by members of
the Rigas family.  In March 2006, the rights and titles to these
entities were transferred to certain subsidiaries of Adelphia
Cablevision, LLC.  The RME Debtors filed for chapter 11
protection on March 31, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10622
through 06-10642).  Their cases are jointly administered under
Adelphia Communications and its debtor-affiliates chapter 11
cases.  (Adelphia Bankruptcy News, Issue No. 162; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or  
215/945-7000).

As reported in the Troubled Company Reporter on Jan. 9, 2007,
the Honorable Robert E. Gerber of the U.S. Bankruptcy Court for
the Southern District of New York entered an order confirming
the first modified fifth amended joint Chapter 11 plan of
reorganization of Adelphia Communications Corp. and Certain
Affiliated Debtors.


CENTENNIAL COMM: Amends Credit Agreement to Lower Borrowing Cost
----------------------------------------------------------------
Centennial Communications Corp. has amended its senior secured
credit facility, lowering the interest rate on term loan
borrowings by 25 basis points through a reduction in the LIBOR
spread from 2.25% to 2.00%.  As of Nov. 30, 2006, Centennial had
US$550.0 million of term loan borrowings outstanding under its
senior secured credit facility.

"This amendment is an important milestone as we renew our
commitment to deleveraging and improve our financial flexibility
and strength," said Michael J. Small, Centennial's Chief
Executive Officer.

Headquartered in Wall, New Jersey, Centennial Communications
Corp. (NASDAQ: CYCL) -- http://www.centennialwireless.com/--   
provides regional wireless and integrated communications
services in the United States and the Puerto Rico with
approximately 1.1 million wireless subscribers and 387,500
access lines and equivalents.  The US business owns and operates
wireless networks in the Midwest and Southeast covering parts of
six states.  Centennial's Puerto Rico business owns and operates
wireless networks in Puerto Rico and the U.S. Virgin Islands and
provides facilities-based integrated voice, data and Internet
solutions.  Welsh, Carson, Anderson & Stowe and an affiliate of
the Blackstone Group are controlling shareholders of Centennial.

                        *    *    *

As reported in the Troubled Company Reporter on July 3, 2006,
Fitch assigned Centennial Communications Corp.'s issuer default
rating at 'B-' and senior unsecured notes rating at 'CCC/RR6'.
Fitch said the rating outlook is stable.


MERIDIAN AUTOMOTIVE: Committee's Suit Against Lenders Dismissed
---------------------------------------------------------------
The Adversary Proceeding among the Official Committee of
Unsecured Creditors, the holders of Prepetition First Lien
Claims, and the holders of Prepetition Second Lien Secured
Claims is dismissed, with prejudice, on the Effective Date
pursuant to the order confirming Meridian Automotive Systems
Inc. and its affiliates' Fourth Amended Joint Plan of
Reorganization, Gregory A. Taylor, Esq., at Ashby & Geddes, in
Wilmington, Delaware, notifies the U.S. Bankruptcy Court for the
District of Delaware.

The Confirmation Order provides, among other things, that on the
Effective Date, the Lien Avoidance Release will be approved in
favor of:

   (i) the First Lien Lenders and the First Lien Agent; and
  (ii) the Second Lien Lenders, the Second Lien Agent and
       Predecessor Agent.

The Confirmation Order further provides that the Lien Avoidance
Action will be dismissed with prejudice.

As reported in the Troubled Company Reporter on Sept. 9, 2005,
the Official Committee of Unsecured Creditors, on Meridian
Automotive Systems, Inc., and its debtor-affiliates' behalf,
wants to avoid certain liens and claims of:

    * Credit Suisse First Boston, both as agent and
      individually,
    * Goldman Sachs Credit Partners L.P., as agent &
      individually,
    * ABN AMRO Bank NV,
    * ABN Amro,
    * Anchorage Capital Master Offs,
    * Anchorage Capital,
    * Bank of America NA,
    * Bank of America NT & SA,
    * Bank of America,
    * Barclays Bank PLC,
    * Bear Stearns Asset Management,
    * Bear Stearns Investment Produc.,
    * Black Diamond Capital Management LLC,
    * Black Diamond CLO 2000-1 Ltd,
    * Breakwater Fund Management, LLC,
    * Breakwater Master Fund Ltd.,
    * Carlyle Loan Opportunity FD,
    * Carlyle,
    * Caspian Capital,
    * Cerberus Partners (Madeleine),
    * Cerberus Partners LP,
    * Citibank International,
    * Citigroup Financial Products,
    * Citigroup Partners LP,
    * Comac Acquisition,
    * Credit Suisse International,
    * Credit Suisse,
    * CSFB International (Trading),
    * Davidson Kempner Partners,
    * Deutsche Bank Trust Co America,
    * Deutsche Bank,
    * DK Acquisition Partners L.P.,
    * Fernwood Associates LLC,
    * Fernwood Foundation Fund LLC
    * Fernwood Restructurings Ltd,
    * Goldman Sachs Asset Management,
    * Goldman Sachs Credit PTS LP,
    * Grand Central Sil Series,
    * GSC Partners,
    * GSC Recovery II LP,
    * GSC Recovery IIA LP,
    * Intermarket Management Corp.,
    * JME Management LLC,
    * JME Offshore Opportunity FD,
    * JME Offshore Opportunity II,
    * JP Morgan Chase Bank,
    * JP Morgan Chase,
    * Lehman Brothers Inc.
    * Lehman Commercial Paper, Inc.,
    * Longhorn CDO (Cayman) Ltd,
    * Mariner Atlantic,
    * Merrill Lynch Asset Management,
    * Morgan Stanley Broker/Dealer,
    * Morgan Stanley Senior Funding,
    * Oppenheimer & Co. (New York),
    * Oppenheimer Senior FL Rate,
    * Quadrangle Group LLC,
    * Quadrangle Master Funding Ltd,
    * Quantum Partners LDC,
    * Satellite Asset Management LP,
    * Satellite Senior Income Fund,
    * SilverPoint Capital,
    * Sol Loan Funding LLC,
    * Soros Partners,
    * Stanfield Capital Partners,
    * Stanfield Modena CLO Ltd,
    * Stanfield Quattro,
    * Stanfield RMF/ Transatlanticcdo,
    * Stonehill Capital Management,
    * Stonehill Institutional Partners,
    * Stonehill Investment,
    * TRS Callistro LLC,
    * TRS Stark LLC,
    * TRS SVCO LLC,
    * ULT CBNA Loan Funding LLC,
    * Wachovia Bank NA,
    * Wachovia Bank of NC,
    * Watershed Cap Inst Partners LP,
    * Watershed Capital Partners (Offshore),
    * Watershed Capital Partners LP,
    * Windward Capital, L.P.,
    * XER Cap PR AC Xerion PRT I LLC,
    * Xerion Capital Partners,
    * Xerion Partners II Master Fund, and
    * XL RE Ltd, and
    * some unidentified lenders.

               The First Lien Credit Agreement

On April 28, 2004, Meridian Automotive Systems, Inc., entered
into a First Lien Credit Agreement with:

    * Credit Suisse First Boston, as First Lien Administrative
      Agent and First Lien Collateral Agent;

    * Goldman Sachs Credit Partners L.P., as Syndication Agent;
      and

    * certain additional lenders party thereto from time to
      time.

Pursuant to the First Lien Credit Agreement, the First Lien
Lenders made available to MASI a US$75 million revolving credit
facility and a Tranche B Term Loan in the principal amount of
US$235 million.

MASI and all of its affiliates that are guarantors under the
First Lien Credit Facility; and CSFB, as First Lien Collateral
Agent, also entered into a First Lien Guarantee And Collateral
Agreement dated April 28, 2004.  Under the First Lien Collateral
Agreement, the First Lien Guarantors granted a security interest
to CSFB for the ratable benefit of the First Lien Lenders in
substantially all assets of the First Lien Guarantors, including
all Investment Property as defined in the First Lien Collateral
Agreement.

Pursuant to a U.C.C. Financing Statement filed with the Delaware
Department of State on Apr. 28, 2004, CSFB asserted a lien on
all assets of Meridian Automotive Systems Composites Operations,
Inc.

On Oct. 18, 2004, CSFB filed a U.C.C. Termination Statement
with the Delaware Department of State, terminating and releasing
CSFB's lien with respect to all assets of Meridian Composites.

Pursuant to a U.C.C. Financing Statement filed with the Delaware
Department of State on April 21, 2005, CSFB asserted a lien on
all of Meridian Composites' assets.

               The Second Lien Credit Agreement

On Apr. 28, 2004, MASI also entered into a Second Lien Credit
Agreement with:

    * CSFB, as Second Lien Administrative Agent and Second Lien
      Collateral Agent;

    * Goldman Sachs, as Syndication Agent; and

    * 20 lenders party thereto from time to time.

Pursuant to the Second Lien Credit Agreement, the Second Lien
Lenders made available to MASI a Tranche C Term Loan in the
aggregate principal amount of US$175 million.

MASI and all of its affiliates that are guarantors under the
Second Lien Credit Facility and CSFB, as Second Lien Collateral
Agent, also entered into a Second Lien Guarantee And Collateral
Agreement dated as of Apr. 28, 2004.  Under the Second Lien
Collateral Agreement, the Second Lien Guarantors granted a
security interest to CSFB for the ratable benefit of the Second
Lien Lenders in substantially all assets of the Second Lien
Guarantors, including all Investment Property.

Section 5.8 of the First Lien Collateral Agreement and Second
Lien Collateral Agreement limits the Lien Lenders' security
interest in the stock of any Foreign Subsidiary to 65% of that
stock to the extent necessary to avoid adverse tax consequence
to any Grantor.

                      Avoidance Action

Pursuant to the DIP Order, the Official Committee was authorized
and had standing to file and prosecute an adversary proceeding
avoiding the First and Second Lien lenders' claims.

(A) Avoidance as a Preferential Transfer the First Lien
     Lenders' Asserted Lien on All Assets of Meridian Composites

     The Preferential Composites Financing Statement purported
     to perfect a security interest in all assets of Composites
     in favor of CSFB for the ratable benefit of the First Lien
     Lenders.

     The Preferential Composites Transfer:

        (i) occurred within the 90 days prior to the Petition
            Date;

       (ii) constitutes a transfer of an interest in one or more
            of the Debtors' property;

      (iii) was for the benefit of the First Lien Lenders, each
            of whom was a creditor of one or more of the Debtors
            prior to and at the time the Preferential Composites
            Transfer was made;

       (iv) was on account of one or more antecedent debts owed
            by the Debtors to the First Lien Lenders before the
            Preferential Composites Transfer was made;

        (v) was made while the Debtors, including Meridian
            Composites, were insolvent;

       (vi) will enable the First Lien Lenders to receive more
            than they would have if:

            -- the Debtors' Chapter 11 cases were cases under
               Chapter 7 of the Bankruptcy Code;

            -- the Preferential Composites Transfer had not been
               made; and

            -- the First Lien Lenders received payment of their
               debts under the provisions of the Bankruptcy
               Code.

     Thus, the Committee is entitled to a Court judgment
     avoiding, recovering, and preserving for the benefit of the
     Debtors' estates the Preferential Composites Transfer or
     its value.

(B) Declaration of the Extent of the Guarantees Given by the
     Debtors for the First and Second Lien Lenders' Benefit

     Pursuant to the First Lien and Second Lien Collateral
     Agreements, each Guarantor's guarantee of MASI's
     obligations under the First Lien Facility and the Second
     Lien Facility is limited to the amount, which can be
     guaranteed by the Guarantor under applicable federal and
     state laws relating to the insolvency of debtors.

     Thus, any claims by the First Lien Lenders or the Second
     Lien Lenders against each of the Guarantors under the two
     Lien Collateral Agreements can be no greater than the
     equity value of each Guarantor as of their bankruptcy
     filing.

(C) Declaration and Avoidance of the First Lien Lenders' and
     Second Lien Lenders' Security Interests in the Stock of
     MASI's Foreign Subsidiaries

     Each Grantor under the First Lien Collateral Agreement and
     Second Lien Credit Agreement would suffer adverse tax
     consequences if the First Lien Lenders and Second Lien
     Lenders hold a security interest in excess of 65% of the
     Pledged Stock of the Foreign Subsidiaries.

(D) Declaration and Avoidance of First Lien Lenders' and Second
     Lien Lenders' Security Interests in Certain Assets of the
     Debtors

     The First Lien Lenders and Second Lien Lenders asserted
     that they held a valid, perfected and enforceable security
     interest in:

        (1) certain assets of the Debtors which are located
            outside of the United States, including certain
            patents and patent applications registered or
            pending in various foreign countries;

        (2) certain vehicles owned by the Debtors;

        (3) the capital stock of Meridian Automotive Systems
            -- DO Brasil LTDA;

        (4) three real properties owned by the Debtors:

               * 5214 Kraft Ave., Grand Rapids, Michigan;
               * 5292 Kraft Ave., Grand Rapids, Michigan; and
               * Grand River Ave., Fowlerville, Michigan;

        (5) the capital stock of Meridian Automotive Systems, S.
            de R.L. de C.V, MASM Employee Leasing Company, S. De
            R.L. de C.V., and MASM Employee Leasing Company
            Muzquiz Operations, S. De R.L. de C.V; and

        (6) the assets owned by Meridian Automotive Systems
            -- Mexico Operations, LLC.

     The First Lien Lenders and Second Lien Lenders have not
     taken the necessary steps to perfect any security interests
     they may have been granted in the Debtors' assets.  
     Therefore, the First Lien Lenders and Second Lien Lenders
     do not hold valid, perfected and enforceable security
     interests in the Debtors' assets.

(E) Declaration that the Lien Collateral Agreements are Void
     for Lack of Consideration with Respect to Meridian
     Automotive Systems - Mexico Operations, LLC

     When MAS-Mexico executed the First Lien Collateral
     Agreement and Second Lien Collateral Agreement in June
     2004, MAS-Mexico received no consideration from the First
     Lien Lenders and Second Lien Lenders.

     Thus, MAS-Mexico's pledge of its capital stock and
     guarantee of MASI's obligations under the First Lien
     Facility and Second Lien Facility is voidable for lack of
     consideration.

The Committee asks the U.S. Bankruptcy Court for the District of
Delaware to enter a judgment declaring:

    (1) void any security interest of the First Lien Lenders in
        the Centralia Facility;

    (2) that any interest of the First Lien Lenders and Second
        Lien Lenders in the stock of the Guarantors is limited
        to the equity value of the Guarantors as of the Petition
        Date, and the equity value of each of the Guarantors;

    (3) any security interest of the First Lien Lenders and
        Second Lien Lenders in the Pledged Stock of the Foreign
        Subsidiaries is limited to 65%, or the lesser amount as
        is appropriate, of the total capital stock of the
        Foreign Subsidiaries;

    (4) that the First Lien Lenders and Second Lien Lenders have
        no security interest in the Debtors' Foreign Assets;

    (5) that the First Lien Lenders and Second Lien Lenders have
        no security interest in the Debtors' Vehicles;

    (6) that the First Lien Lenders and Second Lien Lenders have
        no security interest in the capital stock of MAS-Brazil;

    (7) that the First Lien Lenders and Second Lien Lenders have
        no lien in the Debtors' Michigan Real Property;

    (8) the First Lien Collateral Agreement and Second Lien
        Collateral Agreement void for lack of consideration with
        respect to MAS-Mexico:

          -- avoiding any security interest asserted by the
             First Lien Lenders and Second Lien Lenders in the
             capital stock of MAS-Mexico; and

          -- disallowing all claims of the First Lien Lenders
             and Second Lien Lenders against MAS-Mexico; and

    (9) that the Second Lien Lenders have no security interest
        in MAS-Mexico's assets.

Headquartered in Dearborn, Mich., Meridian Automotive Systems
Inc. -- http://www.meridianautosystems.com/-- supplies   
technologically advanced front and rear end modules, lighting,
exterior composites, console modules, instrument panels and
other interior systems to automobile and truck
manufacturers.  Meridian operates 22 plants in the United
States, Canada and Mexico, supplying Original Equipment
Manufacturers and major Tier One parts suppliers.  The Company
and its debtor-affiliates filed for chapter 11 protection on
April 26, 2005 (Bankr. D. Del. Case Nos. 05-11168 through 05-
11176).  James F. Conlan, Esq., Larry J. Nyhan, Esq., Paul S.
Caruso, Esq., and Bojan Guzina, Esq., at Sidley Austin Brown &
Wood LLP, and Robert S. Brady, Esq., Edmon L. Morton, Esq.,
Edward J. Kosmowski, Esq., and Ian S. Fredericks, Esq., at Young
Conaway Stargatt & Taylor, LLP, represent the Debtors in their
restructuring efforts.  Eric E. Sagerman, Esq., at Winston &
Strawn LLP represents the Official Committee of Unsecured
Creditors.  The Committee also hired Ian Connor Bifferato, Esq.,
at Bifferato, Gentilotti, Biden & Balick, P.A., to prosecute an
adversary proceeding against Meridian's First Lien Lenders and
Second Lien Lenders to invalidate their liens.  When the Debtors
filed for protection from their creditors, they listed US$530
million in total assets and approximately US$815 million in  
total liabilities.  Judge Walrath confirmed the Revised Fourth
Amended Reorganization Plan of Meridian on Dec. 6, 2006.  
Meridian emerged from bankruptcy protection on Dec. 29, 2006.  
(Meridian Bankruptcy News, Issue No. 49; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).


MERIDIAN AUTO: Wants Plastech Compelled to Repay US$1.25 Million
----------------------------------------------------------------
Meridian Automotive Systems Inc. and its debtor-affiliates ask
the U.S. Bankruptcy Court for the District of Delaware to direct
Plastech Engineered Products Inc. to immediately repay
US$1,250,000 as the full amount of the Plastech Trade Payment.

Before their bankruptcy filing, the Debtors were contracted by
Ford Motor Company to produce bumper systems for the Ford
Expedition as part of Ford's U222 program.  

An essential component of the Expedition's bumper systems are
plastic fascias for which the Debtors did not have the tooling
to produce in the years 2002 to 2006, Edward J. Kosmowski, Esq.,
at Young Conaway Stargatt & Taylor, LLP, in Wilmington,
Delaware, relates.

As a result, the Debtors engaged Plastech Engineered Products
Inc. to produce the Ford U222 Fascias for the years 2002 to
2006.

Under the parties' agreement, Plastech was to continue supplying
the Ford U222 Fascias to the Debtors until after 2006, as
necessary, to enable them to manufacture service parts for the
Ford Program.  Plastech was to sell the Ford U222 Fascias to the
Debtors at production prices plus actual cost differential for
packaging and manufacturing the parts.

Moreover, the parties entered into a Critical Vendor Trade
Agreement, pursuant to which the Debtors paid Plastech
US$1,250,000 on account of the then-outstanding invoices for
prepetition goods it supplied to the Debtors.  In return,
Plastech agreed, among other things, to continue supplying the
Ford U222 Fascias to the Debtors.

The Trade Agreement also provides that if Plastech failed to
supply goods to the Debtors on customary trade terms, it would
be obligated to disgorge any portion of the Plastech Trade
Payment in excess of any unpaid postpetition amounts.

Mr. Kosmowski tells the Court that despite the Debtors' repeated
requests for timely and complete delivery of the Ford U222
Fascias, Plastech has continually failed to supply the Fascias
in accordance with the terms of the Trade Agreement since June
2006.  Also, on at least two occasions, Plastech demanded
changes in pricing outside the terms of the Trade Agreement, Mr.
Kosmowski adds.

After extensive discussions with the Debtors and Ford in
December 2006, Plastech agreed to transfer all of the tooling
necessary to manufacture the Ford U222 Fascias to the Debtors so
that the Debtors could produce them.  Currently, the Debtors
produce all the Ford U222 Fascias.

Plastech's failure to supply the Ford U222 Fascias to the
Debtors in accordance with the terms of their Trade Agreement
caused significant disruption to the Debtors' business relations
with Ford, Mr. Kosmowski asserts.  Plastech's failure to supply
the Facias timely is also a breach to the parties' contract,
Mr. Kosmowski maintains.

Headquartered in Dearborn, Mich., Meridian Automotive Systems
Inc. -- http://www.meridianautosystems.com/-- supplies   
technologically advanced front and rear end modules, lighting,
exterior composites, console modules, instrument panels and
other interior systems to automobile and truck
manufacturers.  Meridian operates 22 plants in the United
States, Canada and Mexico, supplying Original Equipment
Manufacturers and major Tier One parts suppliers.  The Company
and its debtor-affiliates filed for chapter 11 protection on
April 26, 2005 (Bankr. D. Del. Case Nos. 05-11168 through 05-
11176).  James F. Conlan, Esq., Larry J. Nyhan, Esq., Paul S.
Caruso, Esq., and Bojan Guzina, Esq., at Sidley Austin Brown &
Wood LLP, and Robert S. Brady, Esq., Edmon L. Morton, Esq.,
Edward J. Kosmowski, Esq., and Ian S. Fredericks, Esq., at Young
Conaway Stargatt & Taylor, LLP, represent the Debtors in their
restructuring efforts.  Eric E. Sagerman, Esq., at Winston &
Strawn LLP represents the Official Committee of Unsecured
Creditors.  The Committee also hired Ian Connor Bifferato, Esq.,
at Bifferato, Gentilotti, Biden & Balick, P.A., to prosecute an
adversary proceeding against Meridian's First Lien Lenders and
Second Lien Lenders to invalidate their liens.  When the Debtors
filed for protection from their creditors, they listed US$530
million in total assets and approximately US$815 million in  
total liabilities.  Judge Walrath has confirmed the Revised
Fourth Amended Reorganization Plan of Meridian. (Meridian
Bankruptcy News, Issue No. 49; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000).


SOLECTRON: Germany Plant Receives ISO 13485:2003 Certification
--------------------------------------------------------------
Solectron Corp. disclosed that its Herrenberg, Germany plant has
received ISO 13485:2003 medical certification.  The
certification specifies requirements for a quality management
system to demonstrate the ability to provide medical devices and
related services that consistently meet customer and regulatory
requirements applicable to medical devices.  The scale of this
quality management system includes production, assembly and
repair of electronic systems and subsystems.

"This medical certification underscores our consistent
commitment to stringent quality standards," said Dr. Monika
Reintjes, General Manager Solectron Germany.  "Receiving ISO
13485 certification increases our value to our medical device
customers, expands our proven competence across the supply chain
and aligns perfectly with our medical segment growth strategy."

Solectron offers OEMs expertise in medical device manufacturing,
including prototyping and new product introduction solutions to
facilitate time-to-market and reduce cost.

"By strategically certifying sites in key regions in Asia,
Europe and North America, Solectron offers a global footprint
and infrastructure to provide close customer proximity as well
as access to low-cost supply bases and manufacturing," said
Misha Rozenberg, senior vice president and Chief Quality
Officer, Solectron.  "This certification reinforces Solectron's
comprehensive quality management system."

Headquartered in Milpitas, California, Solectron Corp., is a
leading electronics manufacturing and services i.e. customized,
integrated manufacturing and supply chain management services,
provider to OEMs in the electronics industry.  For the twelve
months ended Aug. 2006, the company generated approximately
US$10.5 billion in net sales and US$342 million in adjusted
EBITDA.  The company's Latin American operations are located in
Brazil, Mexico and Puerto Rico.

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 14, 2006,
Standard & Poor's Ratings Services raised its corporate credit
and senior unsecured ratings on Milpitas, Calif -based Solectron
Corp. to 'BB-' from 'B+', and its subordinated debt rating to
'B' from 'B-'.  S&P said the outlook is stable.




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


* URUGUAY: Pulp Mill Dispute Results to US$800-Million Loss
-----------------------------------------------------------
Reinaldo Gargano, Uruguay's foreign minister, told The Financial
Times that his country's long-standing pulp mill conflict with
Argentina has already resulted to losses of more than 4% of
gross domestic product, or about US$800 million.  

The neighboring countries' conflict stemmed from the
construction of two pulp mills along their river border.  The
project is the biggest-ever in Uruguay's history.

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

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

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

In January, the International Court rejected Uruguay's petition
to force the Argentine government to end the roadblocks.  
According to the Court's ruling, the blockades are not harming
the rights claimed by Uruguay.  Argentine officials contend that
its citizens can't be forced to stop picketing because it is
within their rights of free expression.

Spanish King Juan Carlos I has sent an envoy to act as mediator
between the two nations.  Argentina and Uruguay have agreed to
meet over the weekend in Spain to arrive at a settlement.  

                     Mercosur Impact

The dispute has also brought to the surface Uruguay's discontent
over the benefits, or lack of it, from the Mercosur trade bloc.  

The foreign minister told the FT that the dispute is threatening
the unity of South Americas' Mercosur trading bloc, where
Argentina and Uruguay hold membership status.

The country, along with Paraguay, has sought for prefential
treatment over the other larger and richer members, Argentina
and Brazil, to little or no avail, the FT relates.  Because of
which, Uruguay has reached beyond Mercosur to find other trading
partners.  It became the first South American nation to ink a
treaty with the United States, the so-called Trade and
Investment Framework Agreement.   

"This disagreement between Argentina and Uruguay is weakening
faith that we can we construct a South American community," Mr
Gargano underscored, the FT relates.  "There are problems in
Mercosur, and very severe ones too."

                         *    *    *

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


AMERICAN COMMERCIAL: Posts US$265.9MM Revenues for 4th Qtr. 2005
----------------------------------------------------------------
American Commercial Lines Inc. reported results for the fourth
quarter and year ended Dec. 31, 2006.

Revenues for the quarter were US$265.9 million, an 18% increase
compared with US$225.6 million for the fourth quarter of 2005.  
Net income for the quarter was US$35.0 million or US$0.56 per
diluted share (all per share data has been adjusted for the
post-split share count), a 307% increase compared to US$8.6
million or US$0.14 per diluted share for the fourth quarter of
2005.  Results for the fourth quarter of 2006 included a gain of
US$4.8 million (net of tax) or US$0.08 per diluted share on the
sale of the company's Venezuelan operations and a charge for the
early retirement of debt of US$0.9 million (net of tax) or
US$0.01 per diluted share related to the redemption of US$10
million in face value of its 9-1/2% Senior Notes.  Results for
the fourth quarter of 2005 included charges for the early
retirement of debt of US$7.3 million (net of tax) or US$0.12 per
diluted share.

Revenues for the full year 2006 were US$942.6 million, a 32%
increase compared with the US$714.9 million for the full year of
2005.  Net income for the full year was US$92.3 million or
US$1.47 per diluted share, a 681% increase compared to net
income for the full year of 2005 of US$11.8 million, or US$0.24
per diluted share.

Mark R. Holden, President and Chief Executive Officer, stated:
"This was a very good year for ACL. Revenues exceeded the
company's previous record high by 20% while EBITDA surpassed the
previous record by 56%. Equally as important, our shareholders
had a very good year as ACL stock increased in value by 116%,
ranking it among the top 3% of approximately 5,100 companies
that were listed on the NYSE and NASDAQ throughout 2006.  Our
employees also participated in the success of the company as our
annual cash bonus award totaled approximately US$17 million, a
52% increase over the award for 2005.  While we are pleased with
our accomplishments during 2006, we are now positioned for the
next phase of our strategy, growth.  We have now begun to plot a
course of organic growth as well as strategic moves to grow
inorganically.  Our strategic course has been developed over the
past two years and is one in which we have been investing.  It
is now time to execute the balance of our strategy."

The transportation segment's revenues increased 26% over the
prior year to US$216.8 million in the fourth quarter, driven by
average fuel neutral rate increases of 15% on the dry freight
business and 11% on the liquid freight business compared to the
fourth quarter of 2005.  For the full year revenues increased
33% over the prior year to US$781.3 million.  Fuel neutral
freight rates for the full year were up, on average, 24% and 12%
respectively on the dry and liquid businesses.  Additionally,
the company renewed US$140 million of contracts that matured
during 2006 for the benefit of 2007 and beyond at an average
rate increase in excess of 20%.  Increased revenues were also
driven by year-over-year volume gains. In the fourth quarter,
ACL moved approximately 11.4 billion ton-miles compared to 10.7
billion ton-miles in the same period of the prior year, an
increase of 7.1% with 3% fewer barges.  For the full year, ACL
moved approximately 45.1 billion ton-miles of cargo compared to
42.7 billion ton-miles transported in 2005, an increase of 5.5%
with 4% fewer barges.

The manufacturing segment's revenues, inclusive of barges
manufactured for internal use by ACL, were US$58.0 million in
the fourth quarter compared to US$53.2 million during the same
period last year. Due to the higher level of internal builds in
the fourth quarter of 2006, external revenues were down 10% from
US$52.6 million in the same period of the prior year to US$47.4
million.  For the full year, manufacturing revenues, inclusive
of barges manufactured for the transportation segment, were
US$211.4 million, or 52.1% higher than prior year.  Of the
annual manufacturing revenues, US$56.2 million were for internal
sales to the transportation segment.  Net of the internal
builds, external revenues increased 28.5% to US$155.2 million
compared to US$120.7 million in 2005.

Earnings Before Interest, Taxes, Depreciation and Amortization
(EBITDA) for the fourth quarter of 2006 were US$70.0 million
with an EBITDA margin of 25.9% compared to US$42.9 million for
the fourth quarter of 2005 for an EBITDA margin of 18.2%.  For
the full year 2006, EBITDA was US$211.8 million for an EBITDA
margin of 22.0% compared to US$110.9 million for the full year
2005, an EBITDA margin of 15.0%.  

ACL also reduced debt by US$80.5 million during the year, from
US$200 million at the end of 2005 to US$119.5 million at the end
of 2006.  Debt reduction for the full year 2006 included
repayment of US$70 million in bank debt and early retirement of
US$10.5 million of the 9 1/2% Senior Notes.

Also, on Jan. 16, 2007, the company's Board of Directors
approved a two-for-one stock split of the company's common
stock, par value US$0.01 per share, in the form of a stock
dividend. Stockholders of record on Feb. 6, 2007, will receive
one additional share of common stock for each share of common
stock held on that day.  The new shares will be distributed on
Feb. 20, 2007.  All per share amounts reflect the effect of this
stock split.

American Commercial Lines, LLC, headquartered in Jeffersonville,
Indiana is a leading Jones Act qualified provider of barge
transportation services on the United States inland waterways.  
American Commercial has operations in Venezuela.

                        *    *    *

As reported in the Troubled Company Reporter on Feb. 7, 2007,
Moody's Investors Service has withdrawn these ratings of
American Commercial Lines LLC:

   * Corporate Family Rating, of B1
   * Probability of Default Rating, of B1
   * Speculative Grade Liquidity Rating, of SGL-2

The withdrawal was due to ACL's purchase on Jan. 31, 2007, of
all of the then outstanding principal amount of its 9.5% Senior
Unsecured Notes due 2015 pursuant to the tender offer for the
Notes that ACL initiated on Jan. 17, 2006.  The rating on the
Notes was withdrawn upon completion of their purchase.  ACL has
no other rated debt outstanding.


ARVINMERITOR INC: Prices US$175MM Conv. Senior Unsecured Notes
--------------------------------------------------------------
ArvinMeritor, Inc., priced its offering of US$175 million
aggregate principal amount of convertible senior unsecured notes
due 2027.  The offering is being made to qualified institutional
buyers in a private placement.  The notes will rank equally in
right of payment to all of ArvinMeritor's existing and future
senior unsecured indebtedness.  ArvinMeritor has granted to the
initial purchasers of the notes a 30-day option to purchase up
to an additional US$25 million aggregate principal amount of the
notes, solely to cover over-allotments.  The sale of the notes
is expected to close on Feb. 8, 2007, subject to customary
closing conditions.

The company will pay 4.00% cash interest on the notes
semiannually until Feb. 15, 2019, after which no cash interest
will be paid.  Commencing Feb. 15, 2019, the principal amount of
the notes will be subject to accretion at a rate that provides
holders with an aggregate annual yield to maturity of 4.00%
(computed on a semi-annual bond equivalent yield basis).

The notes will be convertible in certain circumstances into cash
up to the accreted principal amount of the notes, and cash,
shares of common stock, or a combination thereof, at the
company's election, for the remainder of the conversion
obligation, if any, in excess of the accreted principal amount,
based on an initial conversion rate, subject to adjustment,
equivalent to 37.4111 shares of common stock per US$1,000
original principal amount of notes. This represents an initial
conversion price of approximately US$26.73 per share.

The company currently expects to use the net proceeds from the
offering of the notes (estimated to be US$169.2 million, or
US$193.4 million assuming exercise of the initial purchasers'
over-allotment option in full), together with proceeds from
other sources if needed, to repay in full the US$169.5 million
aggregate principal amount of its outstanding Term Loan B due
2012.  If the company determines not to use the net proceeds
from the offering to repay the Term Loan B due 2012, the company
intends to use the net proceeds for general corporate purposes,
including retiring other indebtedness or funding certain pension
or other long-term liabilities.

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: Fitch Rates US$175-Mil. Convertible Debt at BB-
-------------------------------------------------------------
Fitch Ratings has assigned a 'BB-' rating to ArvinMeritor's
(ARM) issuance of US$175 million (with a potential upsizing to
US$200 million) in convertible senior unsecured notes.  The
issue has a 4% coupon and matures in 2027.  Net proceeds are
expected to be used to repay in full the US$169.5 million
aggregate principal amount of ARM's outstanding Term Loan B due
2012.  As of Dec. 31, 2006, total debt outstanding was US$1.3
billion.  ARM's Rating Outlook is Negative.

Fitch's current ratings on ArvinMeritor are as follows:

   -- Issuer Default Rating 'BB';
   -- Senior unsecured 'BB-';
   -- Trust preferred 'B'.

ARM is reconfiguring its capital structure after having
announced the pending sale of its Emissions Technologies
business.  With the payoff of the Term Loan B, the total senior
secured bank facility will consist of the US$980 million
revolver on which there was no outstanding balance as of
Dec. 31, 2006.  After closing the sale of ET, proceeds should
enable total debt to be reduced from US$1.3 billion at the end
of ARM's fiscal first quarter to about US$1 billion.

The Negative Outlook stems from Fitch's concerns regarding the
industry environment during 2007.  The reduced debt level comes
as ARM's markets go through instability resulting from lower
customer production volumes in its light-vehicle businesses and
weak heavy-truck demand caused by the introduction of new diesel
emissions regulations.  While Fitch recognizes that the reduced
debt burden provides ARM with greater financial flexibility to
weather the difficult industry environment, the Outlook reflects
a heightened risk of operating losses that could potentially
result in a re-leveraging of ARM's balance sheet.

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.


PETROLEOS DE VENEZUELA: Borrows US$1 Bln from Syndicated Lenders
----------------------------------------------------------------
Petroleos de Venezuela SA has obtained a US$1 billion senior
revolving credit facility from a consortium of lenders comprised
of:

         -- BNP Paribas,
         -- ABN AMRO,
         -- Banco do Brasil,
         -- Citibank,
         -- Deutsche Bank, and
         -- JPMorgan Chase.

Venezuela's state-owned oil firm will use the funds to finance
its operations until it sells US$3.5 billion of bonds in the
local market, Bloomberg News reports.  

Finance Director Eudomario Carruyo told El Universal that the
company will soon register the securities.

Petroleos de Venezuela is planning a US$70 billion expansion
aimed at increasing oil output to meet rising demands.  It
targets a 5.8 million barrels per day output by 2012, Bloomberg
says.

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.


* IDB Provides US$800,000 Grant to Promote Regional Public Goods
----------------------------------------------------------------
The Inter-American Development Bank disclosed a US$800,000 grant
for a project to improve disaster risk management for the
tourist sector in the Caribbean and a US$785,000 grant for
climate information applied to agricultural risk management in
the Andean countries.

These initiatives, recently approved by IDB President Luis
Alberto Moreno, are among 11 projects selected by the Initiative
for the Promotion of Regional Public Goods in its yearly call
for proposals. The initiative distributes a total of US$10
million in grants each year to support innovative solutions to
common or transnational problems of countries in Latin America
and the Caribbean.

Under this mechanism, the IDB receives and selects proposals
from countries that tackle problems where a collective approach
offers comparative advantages over individual efforts.  The IDB
was the first multilateral institution to create in 2004 an
operational instrument for the promotion of regional public
goods.  The initiative benefits its 26 borrowing member
countries in a wide range of areas.
The Caribbean

IDB financing will foster development of a regional disaster
risk management framework for the tourism sector in the
Caribbean.  The project will seek to mainstream disaster risk
management into productive sectors of the economy.  It will
consist of the development and adoption of a regional disaster
risk management strategy and action plan for the tourism sector,
including the formulation of standards for vulnerability
assessments and risk mapping applied to the sector.  The
Caribbean Disaster Emergency Response Agency or CDERA and the
Caribbean Tourism Organization or CTO will be strengthened in
disaster risk management.

CDERA will work in conjunction with the CTO, the Caribbean
Community or CARICOM Regional Organization for Standards and
Quality and the University of the West Indies, and with the
countries of the Caribbean.  Each agency will bring its
institutional mandate, expertise and regional constituencies to
the execution of the project.  The overall cost of the project
is US$1 million, of which the IDB will finance 80% and the
participating institutions will provide the balance.
Andean Countries

Financing was approved for a project to improve climate
information applied to agricultural risk management.  The
project aims to reduce the socio-economic impact of adverse
weather on agriculture in countries of the Andean Region.

The project will help countries to accurately predict seasonal
climate changes and establish a regional climate information
system that will assist decision makers in taking preventive
measures and managing risk in the agricultural sector.  A system
for disseminating climate information to agricultural
communities will also be created, and the national
meteorological services will be strengthened in the use of the
climate information system.

The Centro Internacional de Investigacion para el Fenomeno El
Nino or International Center on El Nino Research -- CIIFEN --
based in Guayaquil, Ecuador, will carry out the initiative in
conjunction with the national meteorological services of the
participating countries.  The overall cost of the project will
be US$1,311,000.  The IDB will finance 60% and CIIFEN and the
national meteorological services will provide the balance.


* KPMG Names Phil Rohrbaugh Industries & Marketing Vice Chair
-------------------------------------------------------------
Phil Rohrbaugh has been named to the newly combined position of
vice chair, industries and marketing for KPMG LLP, the U.S.
audit, tax and advisory firm, according to an announcement by
Timothy P. Flynn, chairman and CEO.

In his industries and marketing position, Mr. Rohrbaugh is
responsible for enhancing the skills and knowledge of KPMG's
professionals around key industries -- always a critical focus
of the firm -- so that we can better serve our clients.  In
addition, Rohrbaugh will serve as a member of the U.S. firm's
management committee.  He was formerly managing partner for
KPMG's Philadelphia office.

"Phil brings considerable professional experience working in a
variety of industry sectors to this newly combined role. I look
forward to working with him to offer our clients strategies that
represent a high level of technical knowledge coupled with a
deep understanding of their respective industries," Mr. Flynn
said.

Mr. Rohrbaugh added, "In the current environment, understanding
a client's industry is synonymous with understanding a client's
needs. Chief financial officers and audit committees, in
particular, expect KPMG to demonstrate a deep understanding of
their industry.  This is reflected, as well, in our rationale to
combine KPMG's marketing function with industries."

Mr. Rohrbaugh is being succeeded in the role of managing partner
for KPMG's Philadelphia office by Gerald Maginnis, who has
served as the partner-in-charge of KPMG's audit practice in
Pennsylvania since 2002. Mr. Maginnis also has played key client
service roles with some of KPMG's clients in Philadelphia, and
will continue to be actively engaged with those clients.

Mr. Rohrbaugh has deep experience working in various industry
sectors, including manufacturing, consumer products, technology,
pharmaceutical, and financial services.  He joined KPMG in
Philadelphia in 2002 as office managing partner, and recently
assumed additional responsibilities as partner-in-charge of
markets.  He has more than 30 years of experience in public
accounting and was with Arthur Andersen for 25 years.

Mr. Rohrbaugh had been active in the Philadelphia community,
serving on the boards of the Philadelphia Chamber of Commerce,
World Affairs Council and a local university.  He also is a
member of the CEO Council for Growth.  He graduated, magna cum
laude, with a bachelor's degree in accounting from Susquehanna
University.

                       About KPMG LLP

KPMG LLP, the audit, tax and advisory firm
(http://www.us.kpmg.com),is the U.S. member firm of KPMG  
International.  KPMG International's member firms have 113,000
professionals, including 6,800 partners, in 148 countries.


                         ***********


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