TCRLA_Public/070220.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Tuesday, February 20, 2007, Vol. 8, Issue 36

                          Headlines

A R G E N T I N A

ATALAYA CONSULTORES: Claims Verification Until March 30
BANCO FRANCES: Makes Early Prepayment of Corporate Notes
DIANA INTERNACIONAL: Claims Verification Is Until May 7
LOGISTIC TRADE: Wants Court Approval to Reorganize Business
OEM TELEFONIA: Trustee to Verify Proofs of Claim Until April 9

RECOVA PARK: Trustee to Verify Proofs of Claim Until April 13
TELEFONICA DE ARGENTINA: Board Okays Stock Incentive & ESS Plans

B A H A M A S

WINN-DIXIE STORES: IRS Wants US$88.8M Claims Objection Rejected

B E L I Z E

* BELIZE: Takes Advantage of Collective Action Clause

B O L I V I A

* BOLIVIA: Glencore Denies Talks Regarding Vinto Handover

B R A Z I L

BANCO DO BRASIL: Solid Franchise Cues Fitch Ups to Hold Ratings
BANCO NACIONAL: Finalizing Forroanel Feasibility Study
BANCO NACIONAL: Grants BRL300MM Credit for Sped Implementation
BRASIL TELECOM: Denies Alliance Talks with Tele Norte
BRASIL TELECOM: Inks Accord with Sky+Directv

CHEMTURA CORP: Board Declares 5 Cents Per Common Share Dividend
NRG ENERGY: Inks Pact With LCRA on Future Power Supplies
SADIA: Moody's Holds Ba2 Rating and Says Outlook is Positive
TELE NORTE: Awaiting Anatel Approval of Way Brasil Acquisition
TELE NORTE: Denies Alliance Talks with Brasil Telecom

TELE NORTE: Inks Accord with Sky+Directv

C A Y M A N   I S L A N D S

ASSET BACKED: Proofs of Claim Must be Filed by March 8
ARRAKIS FUND: Final Shareholders Meeting Scheduled on March 9
DIGICEL GROUP: Fitch Junks Rating on Proposed US$1.4B Sr. Notes
DIGICEL LTD: Praises ICTA's Rejection of Rival's Rate Change
FINOVA CAPITAL: Proofs of Claim Must be Filed by March 7

FINOVA CAPITAL: To Hold Final Shareholders Meeting on March 8
FIRSTCARIBBEAN INT'L: Proofs of Claim Must be Filed by March 8
GLG NORTH: Will Hold Final Shareholders Meeting on March 7
GLG STRATEGIC: Final Shareholders Meeting Set for March 7
GUARDIAN INDUSTRIES: Final Shareholders Meeting Set for March 7

NEOCHIP LEASING: Proofs of Claim Must be Filed by March 8
KEYNES FUND: To Hold Final Shareholders Meeting on March 9
LIBRETTO INVESTMENTS: Final Shareholders Meeting Set for March 9
OLD MUTUAL: To Hold Final Shareholders Meeting on March 9
OLD MUTUAL US: Will Hold Final Shareholders Meeting on March 9

OVERSEAS II EXPORT: Proofs of Claim Must be Filed by March 8
PYXIS FUNDING: Proofs of Claim Must be Filed by March 8
SILVERMAQUE FINANCIAL: Final Shareholders Meeting Set on March 8

C H I L E

NOVA CHEMICALS: Calls for Canadian Govt. to Stop CN Rail Strike
ROCK-TENN: Earns US$15.1 Million in Fourth Quarter Ended Dec. 31

C O L O M B I A

BANCO BILBAO: Compass Buy Prompts Moody's to Affirm Ratings

* COLOMBIA: Cutting Income Tax on Firms Investing in Free Zones
* COLOMBIA: Ditches Partial Privatization of Five Electric Firms
* COLOMBIA: Drummond & Glencore Must Comply with Regulations
* COLOMBIA: Using COP1.07T in Extra Tax Revenue to Prepay Debt

C O S T A   R I C A

US AIRWAYS: PAR Investments Sells 6.5 Million Shares of Stock

C U B A

* CUBA: Cracking Down on Illegal Satellite Television Dishes

G U Y A N A

DIGCEL LTD: Constructs Three Base Stations in Linden, Guyana

J A M A I C A

DYOLL INSURANCE: Liquidator Unable to Meet with Coffee Farmers
SUGAR COMPANY: Still Needs More Financial Assistance

M E X I C O

AMERICAN TOWER: Fred Lummis Retires from Board of Directors
DANA CORP: Seeks Approval of George Koch Settlement Agreement
DANA CORP: Judge Lifland Approves Sypris Stipulation Accord
DELTA AIR: U.S. Trustee Adds Carval Investors to Official Panel
DELTA AIR: Fourth Quarter 2006 Net Loss Increases to US$2 Bil.

DIRECTV GROUP: Settles Misuse Programming Lawsuits in New York
ENESCO GROUP: Completes Asset Sale to Tinicum Capital Partners
GENERAL MOTORS: Provides Update on Accounting Issues
GRUPO FINANCIERO: Incurs ARS18.9 Million Net Loss in Fourth Qtr.
KRISPY KREME: Completes US$160 Million Credit Refinancing

MOVIE GALLERY: Inks Deal With Goldman Sachs for Refinancing
SALLY HOLDINGS: S&P Says Chapelton 21 Buy Won't Affect Ratings
VALASSIS COMMS: Expects to Get US$590MM from Sr. Notes Offering

P A N A M A

CHIQUITA BRANDS: Names Michael Holcomb as Corporate Sales VP

P E R U

CFG INVESTMENT: Moody's Affirms B1 Rating on Sr. Unsecured Notes

P U E R T O   R I C O

ADELPHIA COMMS: Can Distribute TWC Shares to Creditors
ADELPHIA COMMS: Reports Number of Contingent Value Vehicle Units
FIRST BANCORP: Issues 9.25 Million Shares to Scotiabank
UNIVISION COMMS: Fitch May Downgrade Ratings on Debt Increase

U R U G U A Y

GERDAU SA: Reports BRL3.5 Billion Net Income in 2006 Fiscal Year

V E N E Z U E L A

AMERICAN COMMERCIAL: S&P Withdraws BB- Corporate Credit Ratings
CITGO PETROLEUM: Sending 80MM Gallons of Discounted Fuel to US
CMS ENERGY: Selling 70% Seneca Stake to Petroleos de Venezuela
PETROLEOS DE VENEZUELA: To Acquire Majority Stake in Seneca


                            - - - - -

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


ATALAYA CONSULTORES: Claims Verification Until March 30
-------------------------------------------------------
Atalaya Consultores en Seguridad S.A. will begin reorganization
after a civil and commercial court in Buenos Aires approved its
petition.

The opening of the reorganization will allow Atalaya Consultores
to negotiate a settlement with its creditors in order to avoid a
straight liquidation.

Pablo Amante will oversee the reorganization proceedings as the
court-appointed trustee and will verify creditors' claims until
March 30, 2007.  The validated claims will be presented in court
as individual reports on May 17, 2007.

Mr. Amante is also required by the court to submit a general
report essentially auditing Atalaya Consultores's accounting and
business records as well as summarizing important events
pertaining to the reorganization.  The report will be presented
in court on July 2, 2007.

An Informative Assembly, the final stage of a reorganization
where the settlement proposal is presented to Atalaya
Consultores's creditors for approval, is scheduled on
Nov. 14, 2007.

The trustee can be reached at:

          Pablo Amante
          Lavalle 1537
          Buenos Aires, Argentina


BANCO FRANCES: Makes Early Prepayment of Corporate Notes
--------------------------------------------------------
BBVA Banco Frances SA notified the Buenos Aires Stock Exchange
or Bolsa de Comercio de Buenos Aires that its board of
directors, on Feb. 9, 2007, issued a resolution to make a total
and early prepayment of Corporate Notes Series No. 15.

The company said that the payment was made pursuant to terms and
conditions established for the Corporate Notes issued for a face
value of US$121,504,050, currently representing a surplus value
of US$81,002,700.

Headquartered in Buenos Aires, Argentina, BBVA Banco Frances SA
-- http://www.bancofrances.com-- conducts capital markets and
securities operations directly, in the over-the-counter market,
and through a subsidiary, in the Buenos Aires Stock Exchange.
The bank operates 227 branches, 512 automated teller machines
(ATMs), a telephone banking service and an Internet banking
service, called Frances Net.  Banco Frances has a market share
in the mutual fund portfolio management industry in Argentina
through Frances Administradora de Inversiones SA, and in the
pension fund industry through Consolidar AFJP SA.  Banco Frances
is a subsidiary of Banco Bilbao Vizcaya Argentaria.

                        *    *    *

As reported on June 2, 2006, Moody's Investors Service upgraded
the Bank Financial Strength Rating of BBVA Banco Frances SA to
D- from E to reflect the bank's improving financial
fundamentals, relative improvement in the operating environment,
and the recovery of the banking system since the financial
crisis of 2001-2002.  BBVA Banco Frances long-term bank deposits
carries Moody's Investor Service's Caa1 rating.


DIANA INTERNACIONAL: Claims Verification Is Until May 7
-------------------------------------------------------
Laura Marletta, the court-appointed trustee for Diana
Internacional's bankruptcy proceeding, will verify creditors'
proofs of claim until May 7, 2007.

Under the Argentine bankruptcy law, Ms. Marletta is required to
present the validated claims in court as individual reports.
Court No. 20 in Buenos Aires will determine if the verified
claims are admissible, taking into account the trustee's
opinion, and the objections and challenges raised by Diana
Internacional and its creditors.

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

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

Diana Internacional was forced into bankruptcy at the behest of
Lichytex SA, whom it owes US$ 18,348.

Clerk No. 40 assists the court in the proceeding.

The debtor can be reached at:

          Diana Internacional SA
          Lavalle 2345
          Buenos Aires, Argentina

The trustee can be reached at:

          Laura Marletta
          San Jose de Calasanz 530
          Buenos Aires, Argentina


LOGISTIC TRADE: Wants Court Approval to Reorganize Business
-----------------------------------------------------------
Court No. 18 in Buenos Aires is studying the merits of Logistic
Trade Service SA's petition to reorganize its business after it
stopped paying its obligations amounting to US$1,030,000 on
Feb. 14, 2007.

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

The debtor can be reached at:

         Logistic Trade Service SA
         Avenida Belgrano 687
         Buenos Aires, Argentina


OEM TELEFONIA: Trustee to Verify Proofs of Claim Until April 9
--------------------------------------------------------------
Mr. Alejandro Debenedetti, the court-appointed trustee, will
verify creditors' proofs of claims until April 9, 2007.
Creditors with unverified claims cannot participate in the Oem
Telefonia's settlement plan.

A Buenos Aires court converted Oem Telefonia's bankruptcy case
to reorganization.  The opening of the reorganization allowed
Oem Telefonia to negotiate a settlement with its creditors in
order to avoid a straight liquidation.

Under the Argentine bankruptcy law, Mr. Debenedetti is required
to present the validated claims in court as individual reports.
He will determine if the verified claims are admissible, taking
into account the trustee's opinion, and the objections and
challenges raised by Oem Telefonia and its creditors.

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

Mr. Debenedetti will also submit a general report that contains
an audit of Oem Telefonia's accounting and banking records.  The
report submission dates have not been disclosed.


RECOVA PARK: Trustee to Verify Proofs of Claim Until April 13
-------------------------------------------------------------
Martin Stolkiner, the court-appointed trustee for Recova Park
S.A.'s bankruptcy proceeding, verifies creditors' proofs of
claim until April 13, 2007.

Mr. Stolkiner will present the validated claims in court as
individual reports on May 29, 2007.  A court in Buenos Aires
will determine if the verified claims are admissible, taking
into account the trustee's opinion and the objections and
challenges raised by Recova Park 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 Recova Park's
accounting and banking records will follow on July 12, 2007.

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

The debtor can be reached at:

         Recova Park
         Lavalle 1607
         Buenos Aires, Argentina

The trustee can be reached at:

         Martin Stolkiner
         Cordoba 1367
         Buenos Aires, Argentina


TELEFONICA DE ARGENTINA: Board Okays Stock Incentive & ESS Plans
----------------------------------------------------------------
Telefonica de Argentina SA notified Bolsa de Comercio de Buenos
Aires or Buenos Aires Stock Exchange that during its board
meeting last week, it resolved the approval of two relevant
plans:

a) Long-Term Incentive Stock Plan.  The Plan consists of
    delivering selected executives a certain number of the
    company's shares as variable compensation.   The number of
    shares to be delivered relies on the achievement level,
    based on benchmarking the shareholder compensation
    evolution, considering Telefonica stock quote and dividend
    (Shareholder Total Return - STR) vis-a-vis the evolution of
    the relevant STRs pertaining to a set of companies listed in
    the telecommunications sector which is the benchmark group.
    The overall initially forecasted term is seven years,
    divided into five 3-year periods each, starting on July 1
    and finishing on June 30 of the third year following the
    initial date.

b) Execution Social Security Plan.  The Plan consists of fixed
    monthly contributions shared between the executives and TASA
    to an enforcement vehicle in order to cover these events:

         -- retirement,
         -- early retirement,
         -- full labor disability and
         -- death of Executives holders of the ESS Plan.

    The contributions will be based on a percentage of the
    participant's yearly gross fixed monetary contribution and
    an additional percentage to be made by the company in
    different portions. While the ESS Plan is in the
    implementation phase, the contributions will be made
    retroactively to Jan. 1, 2006.

Headquartered in Buenos Aires, Argentina, Telefonica de
Argentina SA -- http://www.telefonica.com.ar/-- provides
telecommunication services, which include telephony business
both in Spain and Latin America, mobile communications
businesses, directories and guides businesses, Internet, data
and corporate services, audiovisual production and broadcasting,
broadband and Business-to-Business e-commerce activities.

                        *    *    *

As reported in the Troubled Company Reporter on Jan. 22, 2007,
Moody's Latin America changed the rating outlook to positive
from stable for Telefonica de Argentina's foreign currency
rating of B2 and for the Aa3.ar (national scale rating).  The
rating action was taken in conjunction with Moody's outlook
change to positive from stable for Argentina's B2 foreign
currency ceiling for bonds and notes on Jan. 16, 2007.
Telefonica de Argentina's foreign currency rating continues to
be constrained by Argentina's B2 ceiling.


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


WINN-DIXIE STORES: IRS Wants US$88.8M Claims Objection Rejected
---------------------------------------------------------------
The U.S. Internal Revenue Service asks the U.S. Bankruptcy Court
for the to:

  (i) overrule the objection of Winn-Dixie Stores Inc. and its
      debtor-affiliates to its claims valued at US$88.8 million;

(ii) dismiss the refund requests to the extent the claims for
      refund have not been filed with the IRS;

(iii) deny the Debtors' request to order a refund; and

(iv) rule on the Reorganized Debtors' tax liabilities for the
      years requested.

As reported in the Troubled Company Reporter on Jan. 4, 2006,
the IRS filed 78 proofs of claim in the Reorganized Debtors'
Chapter 11 cases, 29 of which have been disallowed by prior
Court orders.  Claim No. 13607 asserts US$88,832,315, of which
US$52,062,370 is alleged to be secured.

According to Ms. Jackson, the Reorganized Debtors have been in
negotiations with the IRS regarding their tax liabilities for
the 2000 through 2004 tax years.  Based upon their discussions,
the parties have agreed that:

(x) the IRS is owed an additional US$8,786,660 for the 2000 tax
     year;

(y) the IRS owes the Debtors a refund of US$1,273,443 for the
     2001 tax year; and

(z) the IRS owes the Debtors a refund of US$91,504 for the 2002
     tax year.

The parties, however, have not yet reached an agreement
regarding the Debtors' tax liabilities for the 2003, 2004 and
2005 tax years.

The Reorganized Debtors maintain that they overpaid the IRS in
2003 by US$1,905,516, and that they owe the IRS no additional
monies for the 2004 tax year.  Furthermore, based upon net
losses incurred in the 2004 and 2005 tax years, the Reorganized
Debtors assert that they are entitled to refunds for four tax
years:

                 Tax Year      Asserted Refunds
                 --------      ----------------
                   1994         US$6,293,764
                   1995         US$5,454,892
                   2002           US$161,155
                   2003        US$27,633,986

The Reorganized Debtors also asserted that they are owed
US$397,230 for a 2005 fuel tax credit.

Deborah M. Morris, Esq., trial attorney of the U.S. Department
of Justice, Tax Division, in Washington, D.C., asserts that all
of the proofs of claim filed by the IRS have some common
components, but they are not duplicative.

The IRS holds claims against 23 of the individual debtors,
majority of which represent the Reorganized Debtors' joint
liability resulting from consolidated income tax returns for tax
years 2000 to 2003.  The IRS claim amounts currently range from
US$87,906,032 to US$89,648,401.

During the pendency of their bankruptcy proceedings, the Debtors
and IRS were negotiating a settlement of the 2000, 2001, and
2002 income tax liabilities.  However, Ms. Morris notes, no
agreement had been reached on any tax years.

Ms. Morris adds that any proposed settlement of certain tax
years would be subject to review by the Congressional Joint
Committee on Taxation pursuant to 26 U.S.C. Section 6405.  No
review has been made to date, she says.

Since the Reorganized Debtors have already initiated litigation
concerning the tax liabilities, the authority to settle those
liabilities now lies solely with the DOJ Tax Division, and not
with the IRS, Ms. Morris states.  Any negotiations held between
the Reorganized Debtors and the IRS are now irrelevant, she
says.

Furthermore, Ms. Morris contends that the Court lacks
jurisdiction to determine whether the Reorganized Debtors are
entitled to refunds for four tax years.  Even if they were
entitled to tax refunds, it would be inappropriate to refund the
Debtors while they still owe the IRS amounts in excess of the
refunds they are claiming, she avers.

Ms. Morris also asserts that placing an administrative hold on
the asserted refunds does not violate the automatic stay, citing
In Citizens Bank v. Strumpf, 516 U.S. 16 (1985).

Headquartered in Jacksonville, Florida, Winn-Dixie Stores Inc.
-- http://www.winn-dixie.com/-- is one of the nation's
largest food retailers.  The Company operates 527 stores in
Florida, Alabama, Louisiana, Georgia, and Mississippi.  The
Company, along with 23 of its U.S. subsidiaries, filed for chapter
11 protection on Feb. 21, 2005 (Bankr. S.D.N.Y. Case No. 05-11063,
transferred Apr. 14, 2005, to Bankr. M.D. Fla. Case Nos. 05-03817
through 05-03840).  D.J. Baker, Esq., at Skadden Arps Slate Meagher
& Flom LLP, and Sarah Robinson Borders, Esq., and Brian C. Walsh,
Esq., at King & Spalding LLP, represent the Debtors in their
restructuring efforts.  Paul P. Huffard at The Blackstone Group,
LP, gives financial advisory services to the Debtors.  Dennis F.
Dunne, Esq., at Milbank, Tweed, Hadley & McCloy, LLP, and John B.
Macdonald, Esq., at Akerman Senterfitt give legal advice to the
Official Committee of Unsecured Creditors.  Houlihan Lokey &
Zukin Capital gives financial advisory services to the
Committee.  When the Debtors filed for protection from their
creditors, they listed US$2,235,557,000 in total assets and
US$1,870,785,000 in total debts.  The Honorable Jerry A. Funk
confirmed Winn-Dixie's Joint Plan of Reorganization on
Nov. 9, 2006.  Winn-Dixie emerged from bankruptcy on Nov. 21, 2006.

(Winn-Dixie Bankruptcy News, Issue No. 64; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).


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B E L I Z E
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* BELIZE: Takes Advantage of Collective Action Clause
-----------------------------------------------------
Belize has taken advantage of a collective action clause to
facilitate a quicker restructuring of about 50% of its
US$1.1 billion debt, the Financial Times reports.

A collective action clause or CAC allows a supermajority of
bondholders to agree a debt restructuring that is legally
binding on all holders of the bond, including those who vote
against the restructuring.

According to the Financial Times, Belize is the first nation
since the 1930s to use the clause in a bond issued under New
York law - which governs the majority of outstanding sovereign
bonds - to facilitate a restructuring.

"CACs were reintroduced into sovereign bonds governed by New
York law in early 2003.  Since their reintroduction, the clauses
have prospered.  It is now relatively rare to find a sovereign
bond without a CAC," Lee Buchheit, a lawyer at Cleary Gottlieb
representing the Belizean government, told Financial Times.

Financial Times relates that before the clauses were introduced,
about 100% of bondholders had to agree to any change in the
financial terms of many nations' debt.  CACs reduce the
requirement to a supermajority, most commonly 75%, to guarantee
that a tiny minority of hold-out creditors, or a holder that
can't be contacted, can't delay a restructuring that is
supported by a large majority of creditors.

Robert Gray, International Capital Markets Association's vice-
chairperson, told Financial Times that the use of the CAC by
Belize is important.  According to Mr. Gray, "We all know the
problems that arise if you do a restructuring without the use of
a CAC.  You have residual securities that can become troublesome
for the debtor if they fall into the wrong hands."

Everyone suffers when a small minority has the power to delay
sovereign debt restructurings, Financial Times says, citing Lee
Buchheit of Cleary Gottlieb.  He said, "As the years roll on
with no resolution of the crisis, the vast majority of creditors
watch potential recovery values ground to a fine powder.  For
the sovereign debtor's part, a debt crisis is usually
accompanied by a political crisis, an economic crisis, a banking
crisis and sometimes a social crisis."

Sabine Miltner, director of emerging markets policy at the
Institute of International Finance, told Financial Times that
initially it was feared that CACs would increase interest costs
for issuers.

"But over time we argued that they would have no effect on
pricing and this was later borne out.  And now the use of them
in New York bonds are pretty standard," Ms. Miltner commented to
Financial Times.

Sebastian Espinosa -- a director at Houlihan Lokey Howard &
Zukin, Belize's financial adviser -- told Financial Times, "The
significance of the Belize exchange is that it proves that CACs
can play an important role in ensuring efficient and orderly
sovereign debt workouts."

Financial Times underscores that about 50% of Belize's US$1.1-
billion external debt was in the form of bonds.  Of the five
bond issues placed in the Caribbean region, two were governed by
New York law and one of those contained a CAC.  All four
Caribbean bonds were tendered in Belize's offer.  The New York
law CAC bond required 85% of the holders to agree to change the
payment terms of the instrument.  In the end, 87.5% of them
submitted tenders by the time the offer closed.

According to the report, the deal also involved revising the
terms of the existing bond so that the maturity date and coupon
matched the terms of the new bonds that Belize would issue on
Feb. 20 to complete its debt restructuring.  The coupons of the
new instrument will be below the rates that applied to the vast
majority of the restructured debt.

Belize accepted late tenders until Feb. 14.  Some 13% of holders
who didn't agree would be holding "illiquid old bonds" having
the same terms as the new debt.

"Belize did not wish to punish holdouts by forcing them to keep
illiquid bonds," Mr. Espinosa told Financial Times.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Feb. 15, 2007, Moody's upgraded Belize's sovereign ratings in
light of improved liquidity following the restructuring of the
government's external commercial obligations, alleviating
concerns about cash flow over the next few years.  Belize's
foreign and local currency government bond ratings were upgraded
to Caa1 from Caa3.  Moody's also upgraded the Caa1 country
ceiling for bonds to B2 and the Caa3 foreign currency country
deposit ceiling to Caa1.  The outlook on the ratings is stable.




=============
B O L I V I A
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* BOLIVIA: Glencore Denies Talks Regarding Vinto Handover
---------------------------------------------------------
Glencore International was not approached by the Bolivian
government to discuss on Vinto's return to the state, Business
News Americas citing an official from Sinchi Wayra, Glencore's
Bolivian subsidiary.

BNamericas relates that the Bolivian government decided on Feb.
9 to confiscate the Vinto smelter through a "supreme decree."
Vinto, a smelter in the Oruro department, is controlled by a
trust made up of the UK's Commonwealth Development Corp. and
Sinchi Wayra.  The company was privatized in 1996 by the Gonzalo
Sanchez de Lozada administration.  At that time, the British
firm Allied Deals purchased Vinto.  The smelter was then sold to
Comsur, a company belonging to former President Sanchez de
Lozada.  The latter then sold Comsur -- now called Sinchi Wayra
-- to Glencore International.

According to BNamericas, the executive is positive that the
confiscation was a military takeover rather than an act of
nationalization.

The executive commented to BNamericas, "I understand that there
was a nationalization decree but we don't know if the actions
taken were correct.  It seems to us that it was a military
takeover of a private asset.  The military arrived, they kicked
out the directors that were there and they installed new ones."

Glencore International's acquisition of Comsur was transparent
and there wasn't any fraudulent purchase, as the Bolivian
government implied, BNamericas notes, citing the executive.

                        *    *    *

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




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B R A Z I L
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BANCO DO BRASIL: Solid Franchise Cues Fitch Ups to Hold Ratings
---------------------------------------------------------------
Fitch Ratings upgraded Banco do Brasil S.A.'s Support rating to
'3' from '4', and affirmed its other ratings:

   -- Foreign currency Issuer Default Rating (IDR) at 'BB+';
   -- Short-term foreign currency at 'B';
   -- Local currency IDR at 'BB+';
   -- Short-term local currency at 'B';
   -- Individual rating at 'C/D';
   -- National Long-term rating at 'AA(bra)'; and
   -- Short-term rating at 'F1+(bra)'.

The Outlook for the Issuer Default and National Long-term
ratings remains Positive, reflecting the Outlook on Brazil's
sovereign ratings.

The improvement in the Support rating reflects the gradual
improvement in Brazil's sovereign ratings, evidencing a greater
ability to provide support should it be required.

As is reflected in the Positive Outlook, Banco do Brasil's IDRs
are constrained by Brazil's sovereign ratings.  In the absence
of this constraint, these ratings would rise, albeit modestly,
thus the Positive Outlook for the IDRs.  The ratings derive from
the bank's solid franchise, its importance within the Brazilian
financial system, its improving financial profile, and the fact
that its consistently solid deposit base is evidence that it is
considered a safe haven in times of stress.  These qualities
support a Local Currency IDR above the Local Currency sovereign
rating.  Fitch's conviction that Banco do Brasil would continue
to receive support should it be required limit downside to the
bank's IDRs and National ratings absent a deterioration in the
sovereign's ratings.

The bank's Individual rating, which has lifted the bank's long-
term ratings above the sovereign, reflects the above cited
factors, but is also constrained by an operating performance
which has suffered recently from high provisions driven by
pressures on its substantial agricultural portfolio, as well as
from issues surrounding the quality of its capital base.  These
constraints could limit the potential further uplift of Banco do
Brasil's ratings above the sovereign were Brazil's sovereign
ratings to improve further (beyond the improvement reflected in
its Positive Outlook) in the medium term.

While Fitch views current and prospective levels of capital as
adequate, Banco do Brasil's capital needs to be viewed in the
light of a high degree of intangible assets and a substantial
component of Tier II equity in its regulatory base.  Tier I
capital growth has been supported by growth of the bank's bottom
line results, a trend which the agency expects to continue.
Despite steady revenue growth, recent performance has been
dragged down by high provisions and supported by substantial
extraordinary gains.  Going forward, Fitch expects that
performance will benefit from the steady improvement in
revenues; lower provisions, adequate cost control, and a lower
effective tax rate resulting from the provision generated
deferred tax assets should allow this improvement to flow
through to the bottom line.

Banco do Brasil is one of the largest conglomerates in Brazil
and a market leader in various segments, such as export finance,
lending, asset management (19.7% market share) and deposits,
given its relevant share of demand (36.1%), time deposits
(18.6%) and savings deposits (19.8%) as of September 2006.

Fitch's National ratings provide a relative measure of
creditworthiness for rated entities in countries with relatively
low international sovereign ratings and where there is demand
for such ratings.  The highest rating within a country is 'AAA',
and other credits are rated only relative to this risk.
National ratings are designed for use mainly by local investors
in local markets and are distinguished by the addition of an
identifier for the country concerned, such as 'AAA(bra)' for
National ratings in Brazil.  Therefore, specific letter grades
are not internationally comparable.

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.


BANCO NACIONAL: Finalizing Forroanel Feasibility Study
------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social SA will
finanlize by the middle of the year a financial feasibility
study of a project relating to the Ferroanel railroad ring
circling the Sao Paulo state capital, Business News Americas
reports citing a Banco Nacional spokesperson.

"The study into economic feasibility, engineering logistics and
costs is being undertaken by an outsourced research department
at USP [Federal University of Sao Paulo.  They will have
finished the study by July," the spokesperson confirmed to
BNamericas.

BNamericas underscores that the investment will provide funds to
construct 63 kilometers of track between Itaquaquecetuba and
Campo Limpo Paulista.  The project is aimed at improving the
transport bottleneck of in Brazil through investment of around
BRL1 billion.

According to BNamericas, the BNDES approval of the railroad's
economic feasibility is an important step in moving forward with
the priority project of the Brazilian government's growth
acceleration plan (PAC).

MRS Logistica Julio Fontana Neto told BNamericas that the
structure of the construction as well as the operations
investment is changing and will no longer be formed by a public-
private partnership.

BNamericas notes that MRS Logistica has concession rights to the
railroad.

MRS Logistica will be starting environmental and social impact
studies before the bank guarantee is published, Mr. Neto told
BNamericas.

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

                        *    *    *

As reported on Nov. 27, 2006, Standard & Poor's Ratings Services
changed the ratings outlook to Positive from Stable on Banco
Nacional de Desenvolvimento Economico e Social SA's BB Foreign
currency counterparty credit rating and BB+ Local currency
counterparty credit rating.


BANCO NACIONAL: Grants BRL300MM Credit for Sped Implementation
--------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social SA has
granted a BRL300 million line of credit that will help tax
authorities implement the Sped digital bookkeeping system, Tech
news service Baguete reports.

Business News Americas relates that Sped is part of the federal
government's growth acceleration program or PAC.  It will
convert paper tax and accounting documents into electronic
versions with digital certification.

Carlos Sussumu Oda, a representative of federal tax agency
Receita Federal and Sped's supervisor, told Baguete that the
Brazilian government wants almost 12,000 of Brazil's largest
firms to use the electronic system within two years.

The government wants state tax authorities to begin using the
system in 2007, BNamericas states.

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 to Positive from Stable on Banco
Nacional de Desenvolvimento Economico e Social SA's BB Foreign
currency counterparty credit rating and BB+ Local currency
counterparty credit rating.


BRASIL TELECOM: Denies Alliance Talks with Tele Norte
-----------------------------------------------------
Brasil Telecom Chief Executive Officer Ricardo Knoepfelmacher
has denied to the press that the firm is not in talks about a
possible alliance with Tele Norte Leste Participacoes.

Business News Americas relates that Brasil Telecom held a joint
news conference with Tele Norte to disclose separate commercial
accords with pay television firm Sky+Directv.

According to BNamericas, Tele Norte Chief Executive Officer Luiz
Falco has spoken in the past about forming a national champion
out of the firm and Brasil Telecom to compete against companies
like Spain's Telefonica and Mexico's Telmex.

However, Mr. Falco explained to BNamericas that the joint
signing between Tele Norte and Brasil Telecom was a coincidence.
Both firms negotiated separately with Sky+Directv.

                    About Tele Norte

Headquartered in Rio de Janeiro, Brazil, Tele Norte Leste
Participacoes SA -- http://www.telemar.com.br-- provides 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.

                  About Brasil Telecom

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.

                       *    *    *

Brasil Telecom Participacoes' local currency long-term debt
carries Fitch's BB+ rating.

                        *    *    *

Moody's Investors Service placed a Ba1 local currency long-term
issuer rating on Brasil Telecom.


BRASIL TELECOM: Inks Accord with Sky+Directv
--------------------------------------------
Brasil Telecom Chief Executive Officer Ricardo Knoepfelmacher
told reporters that the firm has signed an agreement with
satellite television company Sky+Directv to offer phone,
Internet and pay television services across Brazil.

Business News Americas relates that Brasil Telecom has begun
offering the service in Brasilia and Campo Grande.

According to BNamericas, the accord will allow Brasil Telecom to
compete with rivals including Net Servicos and Embratel, as well
as Spanish telecom group Telefonica in partnership with
satellite service provider DTH Interactive.

Sky+Directv President Luiz Eduardo Baptista told BNamericas that
under the deal, the firm expects to offer discounts of up to
40%, as it will be able to share client service and advertising
costs with Brasil Telecom.  Sky+Directv also hopes to increase
its sales by up to 15% in the four cities where the service will
initially be launched.

Mr. Knoepfelmacher commented to BNamericas that clients want to
combine communications services and entertainment.

"A lot is spoken about regulatory barriers, boarders and
hurdles, but the fact is that there is strong demand from
customers," Mr. Knoepfelmacher told BNamericas.

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.

                       *    *    *

Brasil Telecom Participacoes' local currency long-term debt
carries Fitch's BB+ rating.

                        *    *    *

Moody's Investors Service placed a Ba1 local currency long-term
issuer rating on Brasil Telecom.


CHEMTURA CORP: Board Declares 5 Cents Per Common Share Dividend
----------------------------------------------------------------
Chemtura Corporation's Board of Directors declared a regular
quarterly dividend of five cents per share on the common stock
of the corporation, payable March 16, 2007, to shareholders of
record on Feb. 26, 2007.

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

                        *    *    *

As reported in the Troubled Company Reporter on Nov. 7, 2006,
Moody's Investors Service affirmed its Ba1 Corporate Family
Rating for Chemtura Corp.  Additionally, Moody's held its Ba1
probability-of-default rating on the company's US$500 Million
6.875% Guaranteed Senior Notes due June 2016.


NRG ENERGY: Inks Pact With LCRA on Future Power Supplies
--------------------------------------------------------
NRG Energy Inc. and the Lower Colorado River Authority have
signed a memorandum of understanding to work together
strategically on a series of supply alternatives to serve the
needs of LCRA's wholesale electric customers and to help support
Texas' growing economy.  The agreement could provide LCRA and
its customers with the opportunity to access up to 700 MW of new
NRG electrical generation.

"Our Powering Texas with NRG program is designed to help meet
Texas' growing demand for electrical power," said Thad Hill,
Regional President for NRG Texas.  "We are very pleased to have
the opportunity to work with LCRA, which has such a long track
record of service in Texas and which shares our commitment to
meeting our energy challenges in an affordable and
environmentally responsible manner."

"Central Texas is one of the fastest growing regions in the
country, and population growth creates challenges for public
utilities," said Joe Beal, LCRA General Manager.  "LCRA owes it
to our wholesale electric customers, the communities they serve
and the people of Texas to explore as many options as possible
in our effort to meet growing energy demands.  Exploring our
options with NRG is part of that process."

The transactions contemplated by this agreement could be
finalized as soon as the fourth quarter of this year.

Headquartered in Princeton, New Jersey, NRG Energy Inc. (NYSE:
NRG) owns and operates power generating facilities, primarily in
Texas and the northeast, south central and western regions of
the United States.  NRG also owns generating facilities in
Australia, Brazil, and Germany.

                        *    *    *

As reported in the Troubled Compay Reporter on Nov. 14, 2006,
Fitch Ratings assigned a rating of 'B+/RR3' on NRG Energy's
issuance of US$1.1 billion senior notes due 2011.  This issue
will rank equally with NRG's other senior unsecured obligations.
Fitchs said the rating outlook is stable.


SADIA: Moody's Holds Ba2 Rating and Says Outlook is Positive
------------------------------------------------------------
Moody's Investors Service affirmed Sadia's Ba2 global local
currency corporate family rating, and changed the outlook to
positive from stable.  The change in outlook was prompted by the
continued positive fundamentals for Brazilian poultry producers
and Sadia's continued progress in its strategy to move its
product portfolio into higher value-added products, which should
lead to continued margin expansion.

"Sadia's Ba2 global local currency corporate family rating
continues to reflect Sadia's strong brand portfolio and solid
market position in most of the diverse product categories in
which it participates, its highly competitive cost-structure,
its conservative financial policies, and worldwide geographic
sales diversity," says Moody's analyst Soummo Mukherjee.  "These
positive factors balance against its exposure to earnings
volatility due to commodity price movements, the risk of export
markets being closed to its products, and the fact that free
cash flow will be negative for the next few years because of its
high expansion capital expenditures program."

Sadia remains exposed to the event risk of there being an
outbreak of the high pathogenic avian influenza or AI virus in
Brazil.  While the largest concentration of the disease is in
certain Asian countries, the disease is spreading in Europe as
well.  Should an outbreak occur in Brazil, some trading partners
could prohibit the import of Brazilian poultry, with negative
repercussions for Brazilian poultry processors such as Sadia.

While an AI outbreak in Brazil could have a significant negative
impact on Sadia, the company has made the investments this past
year that would enable it to produce 100% of its poultry exports
in cooked form (the high-pathogenic avian influenza virus is
killed when cooked at temperatures above 70% Celsius) should the
bird-flu virus hit Brazil.  This could help replace a portion of
the fresh meat exports that could be lost under such
circumstances.  Additionally, Moody's notes that Sadia's
strategy to maintain a 50/50 mix of revenues derived from
exports and the domestic market in order to reduce the
dependency on the export revenues.

Sadia's ongoing investments in plant modernizations and
expansions, improved internal cost-control and technological
processes and new plants are expected to continue to lead to
productivity gains translating into a reduced cost base, despite
the expected increase in grain prices (corn and soybean).  In
terms of top-line growth, Sadia is expected to benefit from its
strategy to improve its mix of higher value-added products, a
continued recovery of poultry demand leading to higher volumes
and prices, growth of the beef segment, and Brazil's overall
continued market share gain in the global poultry export markets
due to its competitive cost position.

Sadia's Ba2 global local currency rating could come under upward
pressure if the company continues to deliver on its strategy to
transition its product portfolio into higher value-added
products leading to an EBITDA margin of above 14%, while
maintaining 3-year average total debt / EBITDA below 3.0 times
and 3-year average EBITDA to Interest above 3.5 times on a
sustainable basis (all incorporating Moody's standard analytic
adjustments).

Conversely, the outlook could stabilize if the company's
operating performance does not improve in 2007 compared to 2006
leading to EBITDA margin of less than 10% in 2007 or LTM Debt /
EBITDA to increase above 4.0 times.

Sadia, headquartered in Sao Paulo, Brazil, exports over 1,000
different products to more than 100 countries and is the largest
slaughterer and distributor of poultry and pork products, as
well as the leading refrigerated and frozen protein products
company in Brazil.  For the last twelve months ending in
December 2006, the company had net sales of BRL 6.9 billion (ca.
US$3 billion) with approximately 45% of revenues derived from
exports.


TELE NORTE: Awaiting Anatel Approval of Way Brasil Acquisition
--------------------------------------------------------------
Tele Norte Leste Participacoes' purchase of Way Brasil is still
waiting for telecoms regulator Anatel's approval, Business News
Americas reports.

As reported in the Troubled Company Reporter-Latin America on
Aug. 4, 2006, Tele Norte, through its mobile phone unit Oi,
acquired the cable television firm at an auction for
BRL132 million.

However, Anatel has not yet approved the deal, BNamericas notes.

Tele Norte Chief Executive Officer Luiz Falco told BNamericas,
"The authorization of Way TV has already taken a long time.  The
acquisition is totally legal from a regulatory perspective as
Telemar was the sole bidder in a public auction."

The situation should be resolved by the end of the quarter,
BNamericas says, citing Tele Nort Chief Financial Officer Jose
Luis Magalhaes Salazar.  He said, "We are very positive that the
decision will be favorable for us."

Mr. Falco also denied to BNamericas Tele Norte's possible
purchase of mobile phone firm TIM Participacoes, which is owned
by Telecom Italia.

Tele Norte has resources to make acquisitions but at the moment
the situation is unclear as TIM Participacoes "is for sale one
day, while the next it is not," Mr. Falco told BNamericas.

                       About Way Brasil

Way Brasil, which started operating in 2000, recorded a profit
of BRL110,000 in the first three months of 2006 compared to a
loss of BRL804,000 in the same period IN 2005.

The cable and Internet has a license to provide cable TV and
broadband Internet services in the cities of Belo Horizonte,
Pocos de Caldas, Uberlandia and Barbacena in Minas Gerais state.

                     About Tele Norte Leste

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.


TELE NORTE: Denies Alliance Talks with Brasil Telecom
-----------------------------------------------------
Tele Norte Leste Participacoes Chief Executive Officer Luiz
Falco has denied to the press that the firm is not in talks
about a possible alliance with Brasil Telecom.

Business News Americas relates that Brasil Telecom held a joint
news conference with Tele Norte to disclose separate commercial
accords with pay television firm Sky+Directv.

According to BNamericas, Mr. Falco has spoken in the past about
forming a national champion out of the firm and Brasil Telecom
to compete against companies like Spain's Telefonica and
Mexico's Telmex.

However, Mr. Falco explained to BNamericas that the joint
signing between Tele Norte and Brasil Telecom was a coincidence.
Both firms negotiated separately with Sky+Directv.

                  About Brasil Telecom

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.

                     About Tele Norte Leste

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.


TELE NORTE: Inks Accord with Sky+Directv
----------------------------------------
Tele Norte Leste Participacoes Chief Executive Officer Luiz
Falco told reporters that the firm has signed an agreement with
satellite television company Sky+Directv to offer phone,
Internet and pay television services across Brazil.

Business News Americas relates that Tele Norte will offer the
pay television service to wealthier clients in Rio de Janeiro
and Interior in March.

According to BNamericas, the accord will allow Tele Norte to
compete with rivals including Net Servicos and Embratel, as well
as Spanish telecom group Telefonica in partnership with
satellite service provider DTH Interactive.

Sky+Directv President Luiz Eduardo Baptista told BNamericas that
under the deal, the firm expects to offer discounts of up to
40%, as it will be able to share client service and advertising
costs with Tele Norte.  Sky+Directv also hopes to increase its
sales by up to 15% in the four cities where the service will
initially be launched.

                     About Tele Norte Leste

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.



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


ASSET BACKED: Proofs of Claim Must be Filed by March 8
------------------------------------------------------
Creditors of Asset Backed Funding Corp Nim 2004-Opt1, Ltd.,
which is being voluntarily wound up, are required to present
proofs of claim by March 8, 2007, to Chris Watler and Joshua
Grant, the company's liquidators.

Creditors are required to present proofs of claim personally or
through their solicitors at the time and place that the
liquidator specified.  Failure to present claims would mean
exclusion from the benefit of any distribution that the company
will make.

The liquidators can be reached at:

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


ARRAKIS FUND: Final Shareholders Meeting Scheduled on March 9
-------------------------------------------------------------
The Arrakis Fund, Ltd. will hold its final shareholders meeting
on March 9, 2007, at 9:00 a.m., at:

          Fourth Floor Harbour Place
          George Town, Grand Cayman
          Cayman Islands

These agenda will be taken up during the meeting:

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

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

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

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

The liquidators can be reached at:

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


DIGICEL GROUP: Fitch Junks Rating on Proposed US$1.4B Sr. Notes
---------------------------------------------------------------
Fitch Ratings has taken these rating actions for Digicel Group
Limited, Digicel Limited and Digicel International Finance
Limited:

Digicel Group Limited

   -- Proposed US$1.4 billion senior subordinated notes
      due 2015 assigned 'CCC+/RR5'

Digicel Limited

   -- Foreign currency Issuer Default Rating downgraded
      to 'B-' from 'B'; and

   -- US$450 million senior notes due 2012 downgraded
      to 'B-/RR4' from'B/RR4'.

Digicel International Finance Limited

   --US$850 million senior secured credit facility
     assigned 'B/RR3'.

The Outlook on all ratings is Stable.

The Digicel Group's proposed US$1.4 billion senior notes due
2015 will be subordinated to Digicel Ltd.'s outstanding US$450
million senior notes due 2012 and will not have any specific
guarantee or securing in the operating subsidiaries. Proceeds
from the issuance are expected to be used primarily to purchase
100% of Digicel Ltd. common equity.  After the closing of the
proposed transaction, Digicel outstanding debt will be allocated
as:

   -- DIFL US$650 million in senior secured term loan
      (US$200 unfunded liquidity facility);

   -- DL US$450 million senior unsecured notes due 2012; and

   -- DGL US$1.4 billion senior subordinated unsecured notes
      due 2015.

Digicel Ltd.'s ratings reflect the company's high leverage,
limited liquidity, as well as the expectation of rapid
deleveraging from strong EBITDA growth, primarily coming from
new higher risk markets, mainly Haiti.  The ratings of the new
notes at the Digicel Group level also incorporate a level of
subordination and prospects for below average recovery in the
event of default.  Digicel Ltd.'s IDR downgrade reflects the
increased burden the proposed transaction places on the
operating assets and loss of financial flexibility.  Debt at
Digicel International is rated one notch higher than the group's
IDR reflecting above average recovery prospects.

The company's debt levels have been increasing rapidly as a
result of acquisitions and necessary funding for the rapid
build-out of new markets, Haiti and Trinidad and Tobago.  The
proposed US$1.4 billion issuance at the new controlling company
Digicel Group, will further burden the company with debt.  With
the proposed transaction, consolidated debt at Digicel Group,
excluding project finance at Haiti and Trinidad and Tobago,
should total approximately US$2.5 billion, increasing
substantially the indebtedness of the company.  While Total debt
to LTM EBITDA for Digicel Limited is expected to be
approximately at 4.0 times as of Mar. 31, 2007; Digicel Group
pro forma total debt to restricted group is estimated to be
close to 8.5x for the same period.  Digicel Ltd. unsecured notes
are guaranteed by all existing wholly owned subsidiaries, the
Digicel restricted group, excluding Trinidad and Tobago, and
Haiti subsidiaries.  Once Trinidad and Tobago, and Haiti
operations become increasingly EBITDA positive (both recently
turned EBITDA positive after less than a year of operations) and
credit enhancing to the restricted group, they are expected to
be added to the restricted group and help lower consolidated
leverage.  Consolidated leverage is expected to decrease to
around 6.5x for full fiscal year 2008 as reported EBITDA is
expected to more than double almost entirely due to Haiti, and
Trinidad and Tobago which are expected to go from negative
EBITDA (primarily due to start-up of those business during the
preceding year and the high levels of subscriber acquisition
costs associated with strong subscriber growth) to positive
EBITDA.

Digicel Group's, Digicel Ltd.'s and Digicel International's
ratings, collectively referred as Digicel, also reflect its
position as the leading provider of wireless services in the
Caribbean, its strong brand recognition, growing portfolio of
wireless assets and its high financial leverage.  The ratings
are constrained by increased debt levels and still negative
consolidated free cash flow generation.  Digicel has benefited
from rapidly growing operating cash flow in its core operating
assets and expanding its presence to 22 markets in the Caribbean
in a relatively short period of time.  Despite the efforts of
the company to diversify away its revenue from Jamaican dollars,
the company's operating cash flow generation is still
concentrated in Jamaica.  Despite that for the nine months ended
Dec. 31, 2006, approximately 63% of revenues were generated
either in US dollars, Euros or pegged to these currencies, while
an important part of restricted group EBITDA is still linked to
the Jamaican dollar.  Digicel's largest market, Jamaica, is the
country with the highest concentration of users for Digicel with
1.6 million.  The ratings incorporate sovereign risks including
transfer and convertibility risks associated with investments in
Jamaica.  Fitch considers that future expected EBITDA generation
from the Haitian operation will support growth in cash flow but
will also add a riskier source of revenue and cash flow
generation relative to the current operations due to higher
sovereign risk.

Digicel's operating performance continues to be strong.  The
company has rapidly gained leading market shares in most of the
markets served by successfully executing a strategy of launching
operations with extensive initial geographic coverage, good
customer service, effective branding and through strong product
offerings.  This strategy has proved successful in turning
operations EBITDA positive in a short period of time and gaining
subscribers at a rapid pace.  The company has leading market
share positions versus incumbent operators in most its markets.
The wireless penetration level in most of Digicel's markets is
high, ranging between an estimated 42% and 90% with the
exception of Haiti (20%), El Salvador (28%) and Guyana (14%).
High wireless penetration rates are the result of low fixed-line
penetration, long waiting periods to get fixed-line connections,
good network coverage by wireless service providers and
substitution of fixed-line by mobile.

Digicel is a leading wireless services provider in the Caribbean
region.  The Digicel assets are control by Digicel
International, which in turn is controlled by Digicel Ltd.,
which is controlled by Digicel Group and owned by Denis O'Brien
after the proposed transaction is closed.  The company started
operations in Jamaica in April 2001 and now offers GSM mobile
services in 22 markets primarily in the Caribbean including
Jamaica, St. Lucia, St. Vincent, Aruba, Grenada, Barbados,
Cayman, Curacao, Martinique, Guadeloupe, Trinidad and Tobago and
Haiti among others.  For the LTM ended Dec. 31, 2006, Digicel
consolidated revenues and EBITDA were approximately US$948
million and US$132 million, respectively.  Restricted group
EBITDA for that same period approximately US$270 million and
total subscribers as of Dec. 31, 2006 amounted to 4.1 million,
including recently launched and or acquired operations.


DIGICEL LTD: Praises ICTA's Rejection of Rival's Rate Change
------------------------------------------------------------
Digicel Ltd. told Cay Compass News Online that it appreciates
the International Center for Technology Assessment's (ICTA)
decision to deny the application of Cable & Wireless to modify
the mobile termination rate.

According to Cay Compass, the rate determines the amount clients
pay for calls to mobile phones.

Cay Compass relates that under the laws of the Cayman Islands,
ICTA sets the rates that Cable & Wireless are allowed to charge
to other mobile telecommunication firms to guarantee that
competitors are allowed to compete fairly.

"We believe that Cable & Wireless are trying to abandon
abandoning the FLLRIC process, which they previously agreed and
adhered to for over two years, because it will almost certainly
result in a change in the way they are allowed to bill customers
that will mean less money for C&W.  It is highly ironic and
disingenuous for Cable & Wireless to accuse other mobile
operators for holding costs artificially high considering its
history shows long abuse of dominance, anti-competitive
behavior, exorbitant prices, re-patriation of profits to the UK
and non-existent customer service," said Digicel Chief Executive
Officer JD Buckley told Cay Compass.

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.


FINOVA CAPITAL: Proofs of Claim Must be Filed by March 7
--------------------------------------------------------
Creditors of Finova (Cayman) Capital, Ltd., which is being
voluntarily wound up, are required to present proofs of
claim by March 7, 2007, to Richard A. Ross, the company's
liquidator.

Creditors are required to present proofs of claim personally or
through their solicitors at the time and place that the
liquidator specified.  Failure to present claims would mean
exclusion from the benefit of any distribution that the company
will make.

The liquidator can be reached at:

           Richard A. Ross
           4800 N Scottsdale Road
           Scottsdale, Arizona 85251
           USA


FINOVA CAPITAL: To Hold Final Shareholders Meeting on March 8
-------------------------------------------------------------
Finova (Cayman) Capital, Ltd., will hold its final shareholders
meeting on March 8, 2007, at 10:00 a.m., at:

          4800 N Scottsdale Road
          Scottsdale, Arizona 85251
          USA

These agenda will be taken up during the meeting:

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

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

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

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

The liquidator can be reached at:

          Richard A. Ross
          Finova Capital Corp
          4800 N Scottsdale Road
          Scottsdale, Arizona 85251
          USA


FIRSTCARIBBEAN INT'L: Proofs of Claim Must be Filed by March 8
--------------------------------------------------------------
Creditors of Firstcaribbean International Finance Corp.
(Cayman), Ltd., which is being voluntarily wound up, are
required to present proofs of claim by March 8, 2007, to S.L.C.
Whicker and K.D. Blake, the company's liquidators.

Creditors are required to present proofs of claim personally or
through their solicitors at the time and place that the
liquidator specified.  Failure to present claims would mean
exclusion from the benefit of any distribution that the company
will make.

The liquidators can be reached at:

           K.D. Blake
           Nick Seaman
           S.L.C. Whicker
           P.O. Box 493
           Grand Cayman KY1-1106
           Cayman Islands
           Telephone: 345-949-4800
           Fax: 345-949-7164


GLG NORTH: Will Hold Final Shareholders Meeting on March 7
----------------------------------------------------------
GLG North American Long-Short Fund will hold its final
shareholders meeting on March 7, 2007, at 10:00 a.m., at:

          Deloitte, Fourth Floor
          Citrus Grove
          P.O. Box 1787
          George Town, Grand Cayman
          Cayman Islands

These agenda will be taken up during the meeting:

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

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

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

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

The liquidators can be reached at:

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


GLG STRATEGIC: Final Shareholders Meeting Set for March 7
---------------------------------------------------------
GLG Strategic Fixed Income Fund will hold its final shareholders
meeting on March 7, 2007, at 10:00 a.m., at:

          Deloitte, Fourth Floor
          Citrus Grove
          P.O. Box 1787
          George Town, Grand Cayman
          Cayman Islands

These agenda will be taken up during the meeting:

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

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

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

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

The liquidators can be reached at:

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


GUARDIAN INDUSTRIES: Final Shareholders Meeting Set for March 7
---------------------------------------------------------------
Guardian Industries (Cayman), Ltd., will hold its final
shareholders meeting on March 7, 2007, at 10:00 a.m., at:

          2300 Harmon Road
          Auburn Hills, Michigan 48326
          USA

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          Robert H. Gorlin
          2300 Harmon Road
          Auburn Hills, Michigan 48326
          USA


NEOCHIP LEASING: Proofs of Claim Must be Filed by March 8
---------------------------------------------------------
Creditors of Neochip Leasing, Ltd., which is being voluntarily
wound up, are required to present proofs of claim by March 8,
2007, to Guy Major and Joshua Grant, the company's liquidators.

Creditors are required to present proofs of claim personally or
through their solicitors at the time and place that the
liquidator specified.  Failure to present claims would mean
exclusion from the benefit of any distribution that the company
will make.

The liquidators can be reached at:

           Guy Major
           Joshua Grant
           P.O. Box 1093
           George Town, Grand Cayman
           Cayman Islands


KEYNES FUND: To Hold Final Shareholders Meeting on March 9
----------------------------------------------------------
The Keynes Fund, Ltd., will hold its final shareholders meeting
on March 9, 2007, 9:00 a.m., at:

          Fourth Floor Harbour Place
          George Town, Grand Cayman
          Cayman Islands

These agenda will be taken up during the meeting:

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

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

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

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

The liquidators can be reached at:

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


LIBRETTO INVESTMENTS: Final Shareholders Meeting Set for March 9
----------------------------------------------------------------
Libretto Investments, Ltd. will hold its final shareholders
meeting on March 9, 2007, at 10:00 a.m., at:

          Fourth Floor Harbour Place
          George Town, Grand Cayman
          Cayman Islands

These agenda will be taken up during the meeting:

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

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

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

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

The liquidators can be reached at:

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


OLD MUTUAL: To Hold Final Shareholders Meeting on March 9
---------------------------------------------------------
Old Mutual Asia Pacific Equity Fund, Ltd., will hold its final
shareholders meeting on March 9, 2007, at 9:00 a.m., at:

          Fourth Floor, Harbour Place
          George Town, Grand Cayman
          Cayman Islands

These agenda will be taken up during the meeting:

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

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

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

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

The liquidators can be reached at:

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


OLD MUTUAL US: Will Hold Final Shareholders Meeting on March 9
--------------------------------------------------------------
Old Mutual Us Specialist Equity Fund, Ltd., will hold its final
shareholders meeting on March 9, 2007, at 9:00 a.m., at:

          Fourth Floor Harbour Place
          George Town, Grand Cayman
          Cayman Islands

These agenda will be taken up during the meeting:

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

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

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

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

The liquidators can be reached at:

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


OVERSEAS II EXPORT: Proofs of Claim Must be Filed by March 8
------------------------------------------------------------
Creditors of Overseas II Export, Ltd., which is being
voluntarily wound up, are required to present proofs of claim by
March 8, 2007, to Mora Goddard and Emile Small, the company's
liquidators.

Creditors are required to present proofs of claim personally or
through their solicitors at the time and place that the
liquidator specified.  Failure to present claims would mean
exclusion from the benefit of any distribution that the company
will make.

The liquidators can be reached at:

           Mora Goddard
           Emile Small
           Maples Finance Ltd.
           P.O. Box 1093
           George Town, Grand Cayman
           Cayman Islands


PYXIS FUNDING: Proofs of Claim Must be Filed by March 8
-------------------------------------------------------
Creditors of Pyxis Funding, Ltd., which is being voluntarily
wound up, are required to present proofs of claim by March 8,
2007, to Dianne Scott and Joshua Grant, the company's
liquidators.

Creditors are required to present proofs of claim personally or
through their solicitors at the time and place that the
liquidator specified.  Failure to present claims would mean
exclusion from the benefit of any distribution that the company
will make.

The liquidators can be reached at:

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


SILVERMAQUE FINANCIAL: Final Shareholders Meeting Set on March 8
----------------------------------------------------------------
Silvermaque Financial, Ltd., will hold its final shareholders
meeting on March 8, 2007, at 10:00 a.m., at:

          Suite 2100, Scotia Plaza
          40 King Street West
          Toronto, Ontario M5H 3C2
          Canada

These agenda will be taken up during the meeting:

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

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

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

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

The liquidators can be reached at:

          Omar Gomez
          c/o Cassels Brock & Blackwell LLP
          Suite 2100, Scotia Plaza
          40 King Street West
          Toronto, Ontario M5H 3C2
          Canada

          Ian Goodall
          P.O. Box 61
          Grand Cayman, KY1-1102
          Cayman Islands
          Telephone: +1 345 949 4244
          Fax: +1 345 949 8635




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


NOVA CHEMICALS: Calls for Canadian Govt. to Stop CN Rail Strike
---------------------------------------------------------------
NOVA Chemicals Corporation called for Canadian government
intervention to end the Canadian National Railway strike that is
slowing the transportation of goods to and from its Canadian
manufacturing facilities.

"Rail service is essential to the Canadian economy and the
strike is beginning to impact our customers and our business,"
said Chris Pappas, Chief Operating Officer of NOVA Chemicals.
"Since the two parties appear to be at an impasse, we believe it
is time for the government to intervene on behalf of Canadian
business."

NOVA Chemicals is implementing the contingency plans it
developed in preparation for the strike to meet customer demand.
The company has reduced production at some of its Canadian
manufacturing facilities as a precaution.  If the strike is
protracted and the company is required to substantially reduce
production, the financial impact on NOVA Chemicals could be
significant.

Headquartered in Calgary, Alberta, Canada, Nova Chemicals Co.
(NYSE:NCX) (TSX:NCX) -- http://www.novachem.com/-- is a leading
producer of ethylene, polyethylene, styrene, polystyrene, and
expanded polystyrene.  NOVA Chemicals' manufacturing sites are
strategically situated throughout Canada, the US and South
America.  Its South American operations are located in Chile.

                        *    *    *

As reported in the Troubled Company Reporter on Feb. 5, 2007,
Fitch has downgraded NOVA Chemicals Corp.'s Issuer Default
Rating to BB- from BB; Senior unsecured notes and debentures to
BB- from BB; Senior unsecured revolving credit facility to BB-
from BB; Senior secured revolving credit facility to BB+ from
BBB-; and Retractable preferred shares to 'BB+ from BBB-.

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


ROCK-TENN: Earns US$15.1 Million in Fourth Quarter Ended Dec. 31
--------------------------------------------------------------
Rock-Tenn Company reported net income of US$15.1 million on net
revenues of US$533.9 million for the three-month period ended
Dec. 31, 2006, compared to a net loss of US$9 million on net
revenues of US$490.4 million for the same quarter in 2005.

Net income for the prior year quarter included pre-tax
restructuring and other costs of US$1.0 million.

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

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

                   Financing and Income Taxes

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

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

The company's first quarter fiscal year 2007 effective tax rate
was 29%, lower than the 35% effective tax rate the company
expects for the full year, primarily due to the recognition of
R&D tax credits aggregating US$1 million.  Rock-Tenn's first
quarter fiscal year 2006 included deferred tax expense of US$1.4
million from a tax law change in Quebec.

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

As reported in the Troubled Company Reporter on Feb. 5, 2007,
the company acquired the remaining 40% minority interest in GSD
Packaging LLC that it did not own for US$32 million, giving
Rock-Tenn sole ownership of the company.

                        About Rock-Tenn

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

                          *    *    *

Moody's Investors Service confirmed on Dec. 11, 2006, Rock-Tenn
Company's Corporate Family Rating at Ba2; Senior Unsecured Bank
Credit Facility at Ba2; and Senior Unsecured Regular
Bond/Debenture at Ba3.  Moody's restored the outlook to stable.


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



BANCO BILBAO: Compass Buy Prompts Moody's to Affirm Ratings
-----------------------------------------------------------
Moody's Investors Service has affirmed the Aa2/Prime-1/B+
ratings of Banco Bilbao Vizcaya Argentaria or BBVA, with stable
outlook, following the announcement that it has reached an
agreement to buy 100% of Compass Bancshares (A2 issuer rating),
for US$9.6 billion.  The acquisition will be financed through a
capital increase of approximately 52% of the aggregated value of
the acquisition and internal resources, namely the sale of
selected stakes in its industrial portfolio combined with
internal capital generation.

This acquisition is a significant step forward in its growing
strategy in the US where BBVA purchased in 2005 Laredo National
Bancshares and two Texas-based banks in June 2006, Texas
Regional Bancshares (A1 issuer rating) and State National
Bancshares (not rated), for US$2.164 billion and US$480 million,
respectively, fully paid in cash.  With this acquisition, BBVA
US will be placed among the top 20 regional banks in the US with
a franchise of 622 branches, USD 47 bn in assets and with
regional leadership in in the markets of Texas, Alabama, Arizona
and New Mexico.  BBVA US will become the number 1 regional bank
in the Sunbelt area.  The contribution to profits of this
franchise increases to about 10% from the existing 1%.

According to Moody's, the affirmation of BBVA's ratings is based
on:

   (i) the strategic fit of this acquisition which is fully
       consistent with BBVA's international strategy and,
       specifically, in the US market;

   (ii) the increased contribution of more mature markets to the
        group's earnings mix;

   (iii) the solid financial fundamentals of Compass Bank
         highlighted by its A1/B-/P-1 ratings and therefore the
         limited risks of the acquisition for the group's
         financial fundamentals and risk profile; and

   (iv) BBVA's proven prudent management of its economic
        solvency that has traditionally been commensurate with
        the group's risk profile.

In this regards, and although this acquisition will reduce the
group's core capital levels to below the 6% target, management
expects to restore its level by June 2008.

Banco Bilbao Vizcaya Argentaria is headquartered in Bilbao,
Spain. At the end of December 2006, total consolidated assets
amounted to EUR412 billion. BBVA SA has a subsidiary bank
operating in Colombia.


* COLOMBIA: Cutting Income Tax on Firms Investing in Free Zones
---------------------------------------------------------------
Colombian Trade and Industry Minister Luis Guillermo Plata told
Dow Jones Newswires that the government will cut the income tax
on local and foreign firms that invest at least US$32 million
over the next three years in special economic zones.

Dow Jones states that Colombia has eleven special economic
zones.  Coastal cities of Barranquilla, Santa Marta, Cartagena
have special zones.  Others are located in Bogota, Cali and
Cucuta, as well as in smaller towns like La Tebaida, Palmira,
Sopo and Rionegro.

The government will decrease the corporate tax to 15% from 38.5%
for the qualifying companies.  Firms that make at least 600 jobs
in the next three years will also qualify for the tax break, Dow
Jones relates, citing Minister Plata.

Minister Plata explained to Dow Jones, "This decree generates a
better investment environment for Colombia, while it makes the
country more competitive."

Supertex Chief Financial Officer Ramiro Botero commented to Dow
Jones, "That's excellent news.  With the arrival of the free
trade agreement (with the US), I believe Supertex could easily
generate 300 new jobs in 2008."

Supertex may consider launching new operations in one of the
special zones to benefit from the new tax reduction decree, Dow
Jones says, citing Mr. Botero.

According to Dow Jones, Colombia signed a free trade pact with
the US in November 2006.  Both of the nation's legislature has
yet to approve the agreement.

Colombian Deputy Minister Eduardo Munoz told Dow Jones that
other firms like Cementos Argos showed interest in locating
their operations in the special zones to enjoy the tax benefits.
He said, "Biofuel companies are also interested."

Gianfranco Bertozzi, senior vice president at Lehman Brothers in
New York, commented to Dow Jones that Colombia is moving in the
right direction to keep bringing in foreign direct investment.

"This new measure makes Colombia an attractive place to invest,
while it also complements the recently approved tax reform," Mr.
Bertozzi told Dow Jones.

                        *    *    *

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.


* COLOMBIA: Ditches Partial Privatization of Five Electric Firms
----------------------------------------------------------------
Colombia's government has abandoned plans for a partial
privatization of five electricity distribution firms, Dow Jones
Newswires reports.

Dow Jones underscores that the government will instead sell all
its shares in the firms to the private sector at an auction in
June.

According to Dow Jones, the five firms to be sold are in:

          -- Boyaca,
          -- Cundinamarca,
          -- Meta,
          -- Santander, and
          -- Norte de Santander.

The report says that the five firms are considered the best
managed of nine state-controlled electricity distribution firms.
The companies to be sold posted a COP73.4 billion net profit
over the first nine months of 2006, compared with a
COP300 million loss in 2003.

Colombian Mines and Energy Minister Hernan Martinez told Dow
Jones, "We will have an appraisal of the value of the companies
in the coming days and then we will design the mechanism for the
sale."

Dow Jones says that the government initially planned to transfer
its stakes in the five firms to a new holding company and float
a 25% stake in the new holding on the Bogota stock exchange,
while keeping control of the assets.

However, the government now wants to sell its stakes in the
companies, which are about 80% of the shares in each firm, Dow
Jones notes.  The remainder belongs to provincial governments,
company workers and some minority shareholders.

Dow Jones emphasizes that the government will decide in the next
few weeks whether to sell the companies together or
individually.

The report says that Colombian law gives first refusal rights to
social groups, including:

          -- past and present workers,
          -- labor unions,
          -- cooperatives, and
          -- privately owned pension funds.

Dow Jones relates that the pension funds have lapped up shares
in past privatizations.  However, they are more careful this
time due to the small size of the assets involved.

Juan Camilo Guzman, who helps manage US$1.5 billion in assets at
Swedish financial group Skandia's Colombian pension fund unit,
told Dow Jones, "These companies look too small for us. If they
bundle them together it might make sense for us, but as far as
I'm concerned Isagen looks like a better option."

Mr. Guzman believes that Isagen is an attractive firm as the
demand for electricity in Colombia and neighboring nations
increases, according to the report.

Dow Jones notes that the government will sell its 20% stake in
hydroelectric power generation firm Isagen on the local stock
market later this month for US$264 million.

Minister Martinez commented to Dow Jones that if pension funds
refuse to purchase the stakes in the five regional utilities,
the government will offer those stakes to other private-sector
investors.

Firms like Spain's Endesa SA and Union Fenosa SA and German
utility Steag Hamatech AG have expressed an interest in
Colombia's electric power business, Dow Jones says, citing
Camilo Acosta, the electricity companies' coordinator at the
ministry.

Minister Martinez told Dow Jones that in the case of the
regional electricity firms, the government will distribute the
proceeds from the sale to the provinces so that they spend it on
infrastructure.

The government is making a list of assets to be sold from the
electric power sector, Dow Jones says, citing the minister.  It
plans to sell:

         -- Barranquilla power generator Corelca, which will be
            renamed Geselca, by the end of 2007.  Geselca owns
            thermoelectric plants on the Caribbean coast and in
            San Andres; and

         -- minority stakes in power generation firms
            Electrificadora del Quindio and Central
            Hidroelectrica de Caldas.  The government is
            discussing the sale with public utility Empresas
            Publicas de Medellin SA.

                        *    *    *

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.


* COLOMBIA: Drummond & Glencore Must Comply with Regulations
------------------------------------------------------------
Colombian President Alvaro Uribe has demanded that Drummond and
Glencore comply with environmental regulations at their coal
mining concessions in the Cesar department, Business News
Americas reports.

BNamericas relates that Drummond operates the La Loma mine,
while Glencore runs the Carbones de la Jagua mine.

Published reports say that President Uribe called on the firms
to comply with the regulations after the Jagua de Ibirico
residents' anti-mining protests left one casualty and 30
wounded.

Drummond and Glencore must take actions to avoid causing
injuries and to return the environment to its natural state in
the municipality, BNamericas says, citing President Uribe.

The government said in a statement that it will consider
relocating the coal crushers in Jagua de Ibirico.

The government told BNamericas that it has also sent Deputy
Environment Minister Claudia Mora to work in the area and ensure
that all environmental management plans are being met.

The government said in a statement that Minister Mora will be
required to set up teams there for constant particle emissions
control and to confirm that all coal mining companies operating
in the zone fully meet environmental norms.

BNamericas emphasizes that the government formed a committee to
review work conditions for miners in the zone and to be in
charge of reviewing salaries and re-establishing good relations
between workers and firms.

The committee will determine the true size of the workforce in
the region and study how contracts are managed so that
contracting third parties doesn't become a tactic in labor
contract mediation, President Uribe told BNamericas.

                        *    *    *

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.


* COLOMBIA: Using COP1.07T in Extra Tax Revenue to Prepay Debt
--------------------------------------------------------------
Colombian Finance Minister Alberto Carrasquilla told Dow Jones
Newswires that the government will use COP1.07 trillion in extra
tax revenue to prepay foreign and local debt later in 2007.

The extra tax revenue was due to the improved efficiency of the
government's tax agency, Dow Jones notes, citing Minister
Carrasquilla.

Minister Carrasquilla told Dow Jones that the total revenue from
taxes in January was COP5.9 trillion.  The extra revenue from
tax collection -- accounting for 0.3% of Colombia's gross
domestic product -- won't be spent.

"You could deduce from the new information that the local budget
deficit, expected to be (equivalent to) 1.3% of the gross
domestic product might be lower by 0.3 percentage points,"
Minister Carrasquilla commented to Dow Jones.

Meanwhile, the government had agreed to accept US$300 million
from Empresa de Energia de Bogota, or EEB, for state-owned
natural gas operator Ecogas, Dow Jones notes, citing Minister
Carrasquilla.

EEB won an auction in December 2006 to purchase Ecogas with an
offer of COP3.25 trillion.  EEB funded the purchase with a
US$1.4 billion credit from abroad.  The remaining US$1.1 billion
will be paid in pesos, Dow Jones states.

                        *    *    *

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




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


US AIRWAYS: PAR Investments Sells 6.5 Million Shares of Stock
-------------------------------------------------------------
PAR Investment Partners, L.P., US Airways Group Inc.'s largest
shareholder, has sold a total of 6.5 million shares of its
13.5 million shares of US Airways stock as part of its portfolio
diversification strategy.  PAR was an original investor in US
Airways' merger with America West in September of 2005 and
subsequently acquired additional shares in early 2006 in two
private transactions.

After this sale, PAR Investment Partners will remain one of US
Airways' largest investors and US Airways will remain the
largest position within PAR's investment portfolio.  In
addition, PAR Capital Management Vice President Edward Shapiro
will retain his seat on the US Airways' Board of Directors.

"US Airways has created significant value for its shareholders
and we remain optimistic about the Company's future. However, at
this juncture, it is prudent for us to liquidate a portion of
our investment in order to diversify our portfolio," Paul
Reeder, President of PAR Capital Management, said.

"We have tremendous respect for the management team at
US Airways and are pleased with the merger integration efforts
thus far," Mr. Shapiro added.  "US Airways has a solid business
plan and a strong balance sheet, and I look forward to
continuing to serve on the Board."

"PAR was the first investment firm to recognize the potential of
the US Airways/America West merger and played a key role in
allowing us to attract the investment necessary to complete the
transaction," Chairman and CEO Doug Parker said.  "We couldn't
be more pleased to see them realize a significant return on that
investment.  In addition, we have benefited greatly, and will
continue to benefit, from Ed Shapiro's presence on our
Board.  Ed has been a part of the aviation community for nearly
20 years and has tremendous analytical insight into industry
fundamentals.  We value his presence and look forward to his
continued strategic counsel."

                       About US Airways

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

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

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

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

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

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

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

                            *     *     *

As reported in Troubled Company Reporter on Feb. 1, 2007,
Standard & Poor's Ratings Services affirmed its ratings on US
Airways Group. and its major operating subsidiaries America West
Holdings Corp., America West Airlines Inc., and US Airways Inc.,
including the 'B-' corporate credit ratings.  The ratings were
removed from CreditWatch, where they were placed with developing
implications on Nov. 15, 2006.  The outlook is now positive.


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


* CUBA: Cracking Down on Illegal Satellite Television Dishes
------------------------------------------------------------
Cuba's government seemed to be going after illegal satellite
television dishes, Miami Herald reports.

News daily Granma underscores that satellite dishes are illegal
in Cuba, except for the few entities like hotels, which have the
required permit.

US officials estimate there are 10,000 to 30,000 dishes
assembled in Cuba using smuggled parts, according to Granma.

Miami-based news organization Cubanet relates that the Cuban
National Police was patrolling city streets on the hunt for
illegal television connections.

Jose Antonio, his friend Celestino and a man named Lazaro, whose
shop was used to make satellite dishes, were arrested and now
face up to three years in prison, Miami Herald notes.

Alberto Mascaro -- chief of staff for the Office of Cuba
Broadcasting, the government office that runs TV Marti, the US
government's anti-Castro propaganda channel on Direct TV -- told
Miami Herald, "The attention they are giving it now gives us
confidence that TV Marti is working.  If they are so worried
about it, that only means one thing: It is working."

Other experts commented to Miami Herald that it's unclear
whether the warning was a reply to TV Marti, or simply a
demonstration of power by newly named Communications Minister
Ramiro Valdes.

Miami Herald emphasizes that because Cuba has only four
television channels, some families are willing to spend US$10 a
month to watch Univision and other US stations.

According to Miami Herald, critics have been saying that the
Office of Cuba Broadcasting spends millions of dollars
broadcasting shows nobody watches because the Cuban government
easily jams its non-satellite signals.

"I would compare this to Iran, where our satellite TV is quite
popular and eventually has led in the past six months to a
series of crackdowns on people with satellites, although it's
always been illegal. They seem to crack down when they get word
that too many people are getting the news," Larry Hart --
spokesperson for the Broadcasting Board of Governors, which
supervises TV Marti -- told Miami Herald.

                        *    *    *

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 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




===========
G U Y A N A
===========


DIGCEL LTD: Constructs Three Base Stations in Linden, Guyana
------------------------------------------------------------
Digicel Ltd. has built three base stations in Linden, Guyana,
Stabroek News reports.

Digicel said in a press release that as part of its extensive
plan to construct a new network for Guyana, three base stations
have been constructed around Linden covering Amelia's Ward,
Wismar and downtown Linden.  The stations are to ensure that
Digicel clients are getting the best mobile service available to
them.

According to Digicel's press release, only one base station
provided mobile coverage to Linden before the firm's arrival in
Guyana.

Digicel Guyana Chief Executive Officer Tim Bahrani told Stabroek
News that the firm's new network, which will provide superior
quality of mobile coverage to the people of Guyana, is proof of
the changes being introduced since Digicel bought Celstar in
November 2006.

Digicel said in its press release that today people from
Wakenaam Island to Charity can experience Digicel's superior
network quality.

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.




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


DYOLL INSURANCE: Liquidator Unable to Meet with Coffee Farmers
--------------------------------------------------------------
John Lee, a senior partner in one of the two court-appointed
liquidators of Dyoll Insurance, told the Jamaica Gleaner that
the liquidators have been unable to meet with the Jamaican
coffee farmers group to negotiate a settlement.

Mr. Lee told The Gleaner, "The joint liquidators have tried
repeatedly on numerous occasions since November to meet with
Coffee Trustees."

Dyoll Insurance's liquidators commented to The Gleaner that they
want to negotiate a settlement, rather than fight an appeal on a
lower court ruling that allowed almost 6,000 coffee farmers to
be the beneficiaries of the US$3 million expected from foreign
re-insurers for crops damaged by Hurricane Ivan in 2004.

The Gleaner underscores that Mr. Lee and Kenneth Krys of RSM
Cayman had argued that the cash should be part of a pool to
benefit all Dyoll Insurance policyholders.  If the liquidators
win at appeal, the farmers would be entitled of up to
US$1.5 million of the reinsurance payment.

As reported in the Troubled Company Reporter-Latin America on
Feb. 13, 2007, Senator Norman Grant, the Jamaica Agricultural
Society's president, proposed for an out of court settlement
between the coffee farmers and the liquidators of the Dyoll
Insurance.  Senator Grant admitted to Radio Jamaica he was
worried that if the court case would continue for an extended
period the US$3.2 million owed to farmers could only be used in
paying for legal fees.

Mr. Grant told The Gleaner, "I had discussions with the public
defender to the get two parties to the table.  He has expressed
willingness to make himself available.  It is important that
someone of that office intervene to bring finality to the
matter.  US$3.2 million is there, out of which substantial legal
fees he been paid, while the coffee farmers, in the meantime,
are suffering."

Lawrence Jones of law firm DunnCox representing the coffee
trustees told The Gleaner that he was awaiting instructions from
his clients.

The Cayman Islands Monetary Authority holds J$124.5 million of
Dyoll Insurance's payment, which it plans to distribute only to
Cayman policyholders, unless Jamaica's financial Services
Commission agrees to share with Caymanian policyholders the
J$330 million it holds for distribution to Jamaican claimants,
The Gleaner states.

Dyoll Group Ltd. is a Jamaica-based company that is principally
engaged in the insurance business.  Jamaica's Financial Services
Commission has assumed temporary management of the Jamaica-based
Dyoll Insurance Co. Ltd. in Mar. 7, 2005, in order to establish
the true position of the Company, address the matter of
settlement to its claimants and ensure that its policies will
remain in force after a high level of insurance claims were
leveled on the company as a result of the hurricane Ivan.
Kenneth Tomlinson was appointed temporary manager.  Jamaica's
Supreme Court ordered for the distribution of a US$653 million
fund held by the FSC in accordance with the Insurance Act 2001,
section 59, which says that the prescribed deposit, on the
winding up of an insurance company, should be applied first to
settle the claims of local policyholders.


SUGAR COMPANY: Still Needs More Financial Assistance
----------------------------------------------------
The Sugar Company of Jamaica still needs "substantial sums of
money" to retool, despite the US$44 million it received from the
Petrocaribe Fund, Jamaican Agriculture Minister Roger Clarke
told the Jamaica Observer.

As reported in the Troubled Company Reporter-Latin America on
Feb. 16, 2007, Minister Clarke, Jamaica's agriculture minister,
disclosed details surrounding the US$44 million loan the Sugar
Company received.  Minister Clarke said, "The funds were used
for the partial restructuring of the Sugar Company of Jamaica's
debt with the elimination of the overdraft being carried by the
company with the National Commercial Bank; and providing support
for the operations of the SCJ and its affiliated companies, St.
Thomas and Trelawny Sugar Companies Limited during the 2007 pre-
crop period."  He added that the money was used to purchase and
repair equipment used on the sugar plantations.  According to
him, the funds acquired also facilitated payment of creditors
and the servicing of existing long term debt; provided the means
by which the SCJ undertook out of crop maintenance and
preparation for the 2006/2007 crop; and for the provision of
support for the operations of the Frome, Monymusk, and Bernard
Lodge sugar companies.

Minister Clarke told The Observer on the insufficiency of the
US$44 million, "That is a major problem that we face at this
time, because to get back to production that can help us to earn
our way out of this situation calls for capital injection and
that is a major challenge that we face."

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




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


AMERICAN TOWER: Fred Lummis Retires from Board of Directors
-----------------------------------------------------------
The Board of Directors of American Tower Corporation and its
management have been notified by Fred R. Lummis that he did not
intend to stand for re-election to the Board at the Company's
2007 annual meeting of stockholders.

Mr. Lummis said that he is retiring from the Board to devote
his full time and attention to his position as Chairman and
Chief Executive Officer of Platform Partners, LLC.  Mr. Lummis
said that his decision not to stand for re-election to the Board
was not a result of any disagreement with the Board or Company
management.

Mr. Lummis has served on the company's Board since June 1998.
Mr. Lummis will remain on the Board and the Board committees on
which he currently serves until the 2007 annual meeting of
stockholders, which the Company currently expects will be in May
2007.

                      About American Tower

Headquartered in Boston, Massachusetts, American Tower Corp.
(NYSE: AMT) -- http://www.americantower.com/-- is an
independent owner, operator and developer of broadcast and
wireless communications sites in the United States, Mexico and
Brazil.  American Tower owns and operates over 22,000 sites in
the United States, Mexico, and Brazil.  Additionally, American
Tower manages approximately 2,000 revenue producing rooftop and
tower sites.

                            *    *    *

As reported in the Troubled Company Reporter-Latin America on
Feb. 16, 2007, Moody's Investors Service upgraded the corporate
family rating of American Tower Corp. to Ba1 from Ba2, affirmed
the company's SGL-1 liquidity rating and changed the ratings of
its various debt instruments pursuant to the loss given default
methodology.  This concludes the ratings review commenced Dec.
11, 2006.  Moody's said the outlook is stable.

As reported in the Troubled Company Reporter-Latin America on
Feb. 14, 2007, Fitch Ratings has upgraded the ratings on
American Tower Corp. and its subsidiaries as:

American Tower Corp.

   -- Issuer Default rating to 'BB+' from 'BB-';
   -- Senior Unsecured notes to 'BB+' from 'BB-'.

American Towers Inc.

   -- IDR to 'BB' from 'BB-'.

SpectraSite Communications Inc.

   -- IDR to 'BB' from 'BB-'.


DANA CORP: Seeks Approval of George Koch Settlement Agreement
-------------------------------------------------------------
Dana Corp. and its debtor-affiliates ask the U.S. Bankruptcy
Court for the Southern District of New York to approve their
settlement agreement with George Koch Sons, LLC.

The Debtors and George Koch Sons, LLC, are parties to a purchase
order for the completion of the refurbishing and retrofitting of
an existing electrocoat system owned by the Debtors and housed
in a building at 4010 Airpark Drive, in Owensboro, Kentucky.

The Debtors lease the Owensboro Building from Lexington
Owensboro Corporation pursuant to a lease agreement.  The
Debtors are obliged to indemnify Lexington against all claims
and losses arising out of, among other things, certain liens
asserted against the Owensboro Building under the Lease.

Dana Commercial Credit Corporation, a non-debtor affiliate of
Dana Corporation, owns the land where the Owensboro Building is
situated.

In December 2005, the Debtors paid US$309,440 to George Koch.
George Koch completed the Retrofitting by January 2006.  As of
the Petition Date, however, the Debtors still owe George Koch
US$364,055 under the Purchase Order.

In March 2006, George Koch filed a Mechanic's and Materialman's
Lien for US$364,055 with the clerk for Daviess County, in
Kentucky, against DCCC and Lexington.

In June 2006, the Debtors acknowledged that they have taken
possession of an addition to the Building, which increased the
Building's floor area by approximately 88,000 square feet.  As a
condition to the Lease amendment, Lexington required that DCCC
place US$1,000,000 in escrow as security for repayment of the
debts in the Liens asserted against the Building.

The amount of Escrowed Proceeds currently serving as security
for the debt underlying the Lien is approximately US$450,000.

Pursuant to a Court-approved Settlement between the Debtors and
DCCC, DCCC has agreed to waive its rights to, and release to the
Debtors, the Escrowed Proceeds once certain conditions are met.

In September 2006, George Koch filed Claim No. 10224 asserting a
secured claim for US$364,055, plus interest, costs and expenses,
against the Debtors.

George Koch has advised the Debtors that it is considering
commencing litigation in a Kentucky state court against DCCC and
Lexington to preserve and enforce the Lien.

To resolve their disputes and avoid incurring significant costs
and time in litigating a state court action, the Debtors and
George Koch decided to enter into a settlement agreement, which
provides that:

  (a) Claim No. 10224 will be allowed as a general unsecured,
      non-priority claim for US$364,055 against the Debtors;

  (b) The parties will mutually release and discharge each other
      and DCCC and Lexington for all liabilities related to
      their prepetition claims arising under the Purchase Order
      or the Retrofitting;

  (c) George Koch will withdraw its Lien and will not file a
      lien arising from the Purchase Order or the Retrofitting
      against DCCC, Lexington, the Debtors or the Debtors'
      estates.

                          About Dana Corp.

Headquartered in Toledo, Ohio, Dana Corp. (OTC Bulletin Board:
DCNAQ) -- http://www.dana.com/-- designs and manufactures
products for every major vehicle producer in the world, and
supplies drivetrain, chassis, structural, and engine
technologies to those companies.  Dana employs 46,000 people in
28 countries.  Dana is focused on being an essential partner to
automotive, commercial, and off-highway vehicle customers, which
collectively produce more than 60 million vehicles annually.
The company and its affiliates filed for chapter 11 protection
on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354).  Corinne
Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in
Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq.,
Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in
Cleveland, Ohio, represent the Debtors.  Henry S. Miller at
Miller Buckfire & Co., LLC, serves as the Debtors' financial
advisor and investment banker.  Ted Stenger from AlixPartners
serves as Dana's Chief Restructuring Officer.  Thomas Moers
Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represents
the Official Committee of Unsecured Creditors.  The Debtors'
consolidated balance sheet at March 31, 2006, showed a
US$456,000,000 total shareholder' equity resulting from total
assets of US$7.788 billion and total liabilities of US$7.332
billion.  When the Debtors filed for protection from their
creditors, they listed US$7.9 billion in assets and US$6.8
billion in liabilities as of Sept. 30, 2005.  The Debtors'
exclusive period to file a plan expires on Sept. 3, 2007.  They
have until Nov. 2, 2007, to solicit acceptances of  that plan.
(Dana Corporation Bankruptcy News, Issue No. 32; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000).

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Jan. 15, 2007, Moody's Investors Service assigned ratings to the
amended US$1.55 billion debtor-in-possession financing of Dana
Corp. as a Debtor-in-Possession.  The assigned ratings include a
B1 rating for the US$650 million (downsized from US$750 million
in the original DIP facility) super priority senior secured
asset based revolving credit, and a B2 rating for the US$900
million (upsized from US$700 million in the original DIP
facility) super priority senior secured term loan B.


DANA CORP: Judge Lifland Approves Sypris Stipulation Accord
-----------------------------------------------------------
The Honorable Burton R. Lifland of the U.S. Bankruptcy Court for
the Southern District of New York approved a stipulation between
Dana Corp. and its debtor-affiliates and Sypris Technologies,
Inc.  The Debtors agree that they will not enter into or order
any parts pursuant to any requirements purchase orders without
seeking Court authority.

Sypris has informed the Debtors that it does not object to the
initial purchase orders for the creation of production intent
tooling and equipment and corresponding purchase orders for
limited test quantities of parts.

Sypris, however, objects to the requirements purchase orders for
supply of the Debtors' requirements for parts.

If the Debtors seek authority from the Court to enter into any
Requirements Purchase Order, Sypris reserves all of its rights
to object to the relief and rights to seek discovery in support
of its objection, and all claims available to it.

                      The Re-Sourcing Program

As reported in the Troubled Company Reporter on Jan. 10, 2007,
the Debtors have classified purchase orders into three
categories:

   1. Tooling P.O.'s -- Initial purchase orders with certain
      Alternative Suppliers for the creation of "production
      intent" tooling and equipment needed to produce the Parts.

   2. PPAP P.O.'s -- Corresponding purchase orders for limited,
      test quantities of the Parts, to be subjected to the Part
      Production Approval Process.

   3. Requirements P.O.'s -- Subject to successful Tooling and
      PPAP, purchase orders for supply of the Debtors'
      requirements for the Parts.

The Debtors have designed three Stages for the Re-Sourcing
Program:

A. Stage One focuses on large-steer axle beams, axle shafts,
   machining of drive-axle differential cases, and full-float
   axle-tube assemblies.

   With respect to each of the Stage One Parts, the Debtors
   propose that they promptly will enter into Tooling P.O.s and
   PPAP P.O.'s with certain Alternative Suppliers whom they
   already have identified.  In developing the Re-Sourcing
   Program, the Debtors have conducted specific and material,
   though preliminary and non-committal, discussions with the
   list of Alternative Suppliers.

   The Debtors' maximum estimated expenditure under the Stage
   One Tooling P.O.'s and PPAP P.O.s is US$4,900,000, which the
   Debtors plan to pay over time as progress installments, per
   Schedules to be negotiated in the Tooling P.O.s and PPAP
   P.O.'s.  Extrapolating from the volumes of the past 12
   months, the Debtors project that they can achieve net annual
   savings of approximately US$6,700,000, as a result of using
   Alternative Suppliers for the Stage One Parts.

B. In Stage Two, the Debtors propose to re-source:

    * ring forgings for approximately US$577,000 and a lead time
      of approximately 44 weeks;

    * pinion forgings for approximately US$190,500 and a lead
      time of approximately 40 weeks;

    * input shaft forgings for approximately US$29,400 and a
      lead time of approximately 20 weeks;

    * king pins for no material Capital Expense and a lead time
      of approximately only 12 weeks;

    * steer arms for approximately US$250,000 and a lead time of
      approximately 44 weeks;

    * tie rod arms for approximately US$250,000 and a lead time
      of approximately 44 weeks; and

    * full-float axle tube assembles not re-sourced in Stage
      One, at a Capital Expense of approximately US$1,703,000
      and a lead time of approximately 48 weeks.

C. In Stage Three, the Debtors propose to re-source:

    * helical gear forgings for approximately US$144,200 and a
      lead time of approximately 28 weeks;

    * precision forgings for approximately US$30,000 and a lead
      time of approximately 15 weeks;

    * forging and machined knuckles for approximately US$600,000
      and a lead time of approximately 30 weeks; and

    * carriers and caps for approximately US$970,000 and a lead
      time of approximately 24 weeks.

                          About Dana Corp.

Headquartered in Toledo, Ohio, Dana Corp. (OTC Bulletin Board:
DCNAQ) -- http://www.dana.com/-- designs and manufactures
products for every major vehicle producer in the world, and
supplies drivetrain, chassis, structural, and engine
technologies to those companies.  Dana employs 46,000 people in
28 countries.  Dana is focused on being an essential partner to
automotive, commercial, and off-highway vehicle customers, which
collectively produce more than 60 million vehicles annually.
The company and its affiliates filed for chapter 11 protection
on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354).  Corinne
Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in
Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq.,
Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in
Cleveland, Ohio, represent the Debtors.  Henry S. Miller at
Miller Buckfire & Co., LLC, serves as the Debtors' financial
advisor and investment banker.  Ted Stenger from AlixPartners
serves as Dana's Chief Restructuring Officer.  Thomas Moers
Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represents
the Official Committee of Unsecured Creditors.  The Debtors'
consolidated balance sheet at March 31, 2006, showed a
US$456,000,000 total shareholder' equity resulting from total
assets of US$7.788 billion and total liabilities of US$7.332
billion.  When the Debtors filed for protection from their
creditors, they listed US$7.9 billion in assets and
US$6.8 billion in liabilities as of Sept. 30, 2005.  The
Debtors' exclusive period to file a plan expires on Sept. 3,
2007.  They have until Nov. 2, 2007, to solicit acceptances of
that plan.  (Dana Corporation Bankruptcy News, Issue No. 32;
Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Jan. 15, 2007, Moody's Investors Service assigned ratings to the
amended US$1.55 billion debtor-in-possession financing of Dana
Corp. as a Debtor-in-Possession.  The assigned ratings include a
B1 rating for the US$650 million (downsized from US$750 million
in the original DIP facility) super priority senior secured
asset based revolving credit, and a B2 rating for the US$900
million (upsized from US$700 million in the original DIP
facility) super priority senior secured term loan B.


DELTA AIR: U.S. Trustee Adds Carval Investors to Official Panel
---------------------------------------------------------------
Pursuant to Section 1102 of the Bankruptcy Code, Diana G. Adams,
acting United States Trustee for Region 2, has amended the
membership of the Official Committee of Unsecured Creditors in
Delta Air Lines Inc. and its debtor-affiliates' Chapter 11 cases
to reflect the addition of Carval Investors, LLC.

The Creditors Committee now consists of:

     (1) Deborah Ibrahim
         Assistant Vice President
         U.S. Bank National Association and U.S. Bank Trust
         National Association
         One Federal Street, 3rd Floor
         Boston, MA 02110
         Tel: (617) 603-6427

     (2) Jordan S. Weltman
         Senior Managing Director - Americas Region
         Boeing Capital Corp.
         500 Naches Avenue S.W., 3rd Floor
         Renton, WA 98055
         Tel: (425) 965-0052

     (3) Suonne Kelly
         Andrea Wong
         Pension Benefit Guaranty Corporation
         1200 K Street, N.W.
         Washington, D.C. 20005
         Tel: (202) 326-0000

     (4) John Lewis, Jr., Esq.
         The Coca-Cola Company
         One Coca-Cola Plaza
         Atlanta, GA 30303
         Tel: (404) 676-0016

     (5) F. Scott Wilson, Esq.
         Pratt & Whitney, a division of United Technologies
         Corporation
         400 Main Street
         Bast Hartford, CT 06108
         Tel: (860) 565-0321

     (6) Tim Canoll
         DAL MEC
         Air Line Pilots Association, International
         c/o DAL MEC Office
         100 Hartsfield Centre Parkway, Suite 200
         Atlanta, GA 30354
         Tel: 763-0925

     (7) Mark Guidinger
         Carval Investors, LLC
         12700 Whitewater Drive (MS 144)
         Minnetonka, MN 55343-9439
         Tel: (952) 984-3360

     (8) Nate Van Dozer
         Fidelity Advisor Series II: Fidelity Advisor High
         Income Advantage Fund
         82 Devonshire Street E3 IC
         Boston, MA 02109
         Tel: (617) 392-8129

     (9) Gary Bush
         Bank of New York
         Corporate Trust Default Group
         101 Barclay Street, Floor 8 West
         New York, NY 10286


                       About Delta Air

Headquartered in Atlanta, Georgia, Delta Air Lines (OTC: DALRQ)
-- http://www.delta.com/-- is the world's second-largest
airline in terms of passengers carried and the leading U.S.
carrier across the Atlantic, offering daily flights to 502
destinations in 88 countries on Delta, Song, Delta Shuttle, the
Delta Connection carriers and its worldwide partners.  The
Company and 18 affiliates filed for chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923).
Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents
the Debtors in their restructuring efforts.  Timothy R. Coleman
at The Blackstone Group L.P. provides the Debtors with financial
advice.  Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at
Akin Gump Strauss Hauer & Feld LLP, provide the Official
Committee of Unsecured Creditors with legal advice.  John
McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James
S. Feltman at Mesirow Financial Consulting, LLC, serve as the
Committee's financial advisors.  As of June 30, 2005, the
company's balance sheet showed US$21.5 billion in assets and
US$28.5 billion in liabilities.  (Delta Air Lines Bankruptcy
News, Issue No. 62; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


DELTA AIR: Fourth Quarter 2006 Net Loss Increases to US$2 Bil.
--------------------------------------------------------------
Delta Air Lines reported a net loss of US$2.0 billion in the
fourth quarter of 2006, compared to a net loss of US$1.2 billion
in the fourth quarter of 2005.

Excluding reorganization and special items, the company's net
loss was US$179 million in the fourth quarter of 2006, a US$603
million improvement from the fourth quarter of 2005.  Operating
income for the December 2006 quarter was US$6 million, which
represents Delta's third consecutive quarterly operating profit.

For the full year 2006, Delta recorded a net loss of US$6.2
billion, compared to 2005's full year net loss of US$3.8
billion.  Excluding reorganization and special items, the
company's net loss was US$406 million in 2006, a US$1.8 billion
improvement over 2005. Delta's operating income of US$58 million
for 2006 was a US$2.1 billion improvement over 2005 and the
company's first annual operating profit since 2000.

"A full year operating profit, and the magnitude of the progress
it represents, marks a major milestone for Delta.  This is
testimony to the dedication and hard work of Delta employees,"
said Gerald Grinstein, Delta's chief executive officer.  "With
Court approval of the company's Disclosure Statement earlier
this month, there is great momentum building towards a
successful emergence from Chapter 11 this spring as a strong,
healthy and independent global competitor."

                       Revenue Performance

For the December 2006 quarter, total passenger revenue increased
5.9% on a 3.6% decrease in capacity.  Delta's consolidated
passenger unit revenues (PRASM) increased 9.9% in the December
2006 quarter compared to the same period in 2005.  Delta's
length of haul adjusted PRASM increased 12.1% for the fourth
quarter 2006 versus fourth quarter 2005, as compared to the
industry (excluding Delta) average PRASM increase of 5.1% over
the same period.

For the full year 2006, Delta's consolidated PRASM rose 13.2%
compared to the prior year.  Delta's length of haul adjusted
PRASM increased 17.8% for 2006 versus 2005, as compared to the
industry (excluding Delta) average PRASM increase of 10.7% over
the same period.

                       Operating Expense

For the December 2006 quarter, Delta's operating expenses
decreased 10.2%, or US$471 million, compared to the December
2005 quarter.  Driven by its restructuring efforts, Delta's
mainline unit costs in the fourth quarter of 2006 decreased by
9.3% as compared to the fourth quarter of 2005.  Excluding fuel
and special items, mainline unit costs decreased 6.2% over the
prior year period.

Despite the US$804 million increase in expense due to higher
fuel prices in 2006, Delta's operating expenses decreased by
US$1.1 billion, or 5.9%.  Delta's 2006 mainline unit costs
decreased by 3.9% in comparison to the prior year.  Excluding
fuel and special items, mainline unit costs decreased 3.9% for
the same period.

                          Fuel Hedging

Delta recorded US$86 million and US$108 million in net charges
for settled fuel hedge contracts for the December 2006 quarter
and the full year, respectively.  These charges are reflected in
aircraft fuel expense.  In addition, the company recorded
charges of US$14 million and US$37 million associated with the
ineffective portion of fuel hedges in miscellaneous expense,
net, for the December 2006 quarter and full year respectively.

As of February 12, 2007, the company had hedged approximately
52% of its planned fuel consumption for the March 2007 quarter
through a combination of swaps and collars at an average cap of
US$1.95 per gallon and an average floor of US$1.88 per gallon.
The company is currently forecasting its average fuel price for
the March 2007 quarter to be US$1.89 per gallon.

For the June 2007 quarter, Delta has hedged approximately 40% of
its planned fuel consumption, through a combination of swaps and
collars with an average cap of US$1.91 per gallon and an average
floor of US$1.71 per gallon.  For the September 2007 quarter,
the company has hedged approximately 18% of its planned fuel
consumption at an average cap of US$1.93 per gallon and an
average floor of US$1.76 per gallon.

                           Liquidity

At Dec. 31, 2006, Delta had US$3.5 billion in cash, cash
equivalents and short-term investments, of which US$2.6 billion
was unrestricted.

On Jan. 30, 2007, Delta announced that it had obtained
commitments for a US$2.5 billion exit financing facility, a
significant step in the company's plan to exit bankruptcy.  The
exit facility will be co-led by six financial institutions --
JPMorgan, Goldman Sachs & Co., Merrill Lynch, Lehman Brothers,
UBS, and Barclays Capital -- and will consist of a US$1 billion
first-lien revolving credit facility, a US$500 million first-
lien Term Loan A, and a $1 billion second-lien Term Loan B.  The
facility will be secured by substantially all of the first-
priority collateral securing Delta's existing Debtor-In-
Possession (DIP) facilities.

                     Restructuring Progress

On Feb. 7, 2007, the Bankruptcy Court, with no creditors
objecting, approved Delta's Disclosure Statement and authorized
the company to begin soliciting approval from its creditors for
the Plan of Reorganization.  The Unsecured Creditors Committee
supports Delta's Plan of Reorganization and recommends that
creditors vote in favor of the Plan.  A confirmation hearing for
the Bankruptcy Court to consider approval of the Plan of
Reorganization has been scheduled for April 25, 2007.

Delta remains on course to emerge from Chapter 11 in Spring 2007
as a strong, competitive, independent airline.  As of December
31, 2006, the company had achieved its full US$3 billion goal of
annual financial improvements through revenue improvements and
cost reductions, reaching its goal one year ahead of schedule.

Delta made these progresses against its restructuring
benchmarks:

-- Attain a best-in-class cost structure - The company achieved
    the lowest mainline non-fuel CASM of the network carriers
    with 2006 mainline CASM excluding fuel and special items of
    7.20 cents.

-- Improve unit revenue performance - Delta's length of haul
    adjusted PRASM was 93% of industry average, up substantially
    from 86% in 2005.

-- Eliminate cash bleed and repair the balance sheet - Delta
    generated US$1.2 billion of free cash flow, its first
    positive free cash flow since 1998.

-- Restore profitability - The company recorded its first
    annual operating profit since 2000.

"By executing on all aspects of our restructuring plan -
increasing liquidity, improving unit revenues and reducing unit
costs, while simultaneously investing in our network and product
- we exceeded our goals for 2006 and positioned Delta to become
a fierce competitor in this industry," said Edward H. Bastian,
Delta's executive vice president and chief financial officer.
"Because of the strength and determination of the entire Delta
team, we expect this momentum to continue into 2007 and beyond."

                      2006 Accomplishments

Delta has made enormous progress in transforming the airline
into a strong, healthy, and vibrant competitor.  While many
companies use the bankruptcy process simply to shore up their
balance sheet and reduce debt, Delta achieved a top-to-bottom
transformation that touched every aspect of how it does business
to improve and strengthen the airline.

Safety remains Delta's highest priority.  The company was named
the 2006 Occupational Industry Leader by the National Safety
Council - the first airline to receive this recognition.

-- Delta was ranked in the top two of all network carriers in
    overall customer service by J.D. Power and Associates in
    2006.  J.D. Power rated Delta #1 for customer services
    across three metrics - aircraft condition/cleanliness,
    boarding/deplaning/baggage, and flight crew.  In addition,
    Delta was awarded "Best Frequent Flyer Program," "Best
    Airline Web Site" and "Best Airport Lounge" by Business
    Traveler readers in the 2006 Best in Business Travel Awards.

-- Delta began 124 new nonstop routes and added 41 destinations
    to its network in 2006, with 35 additional nonstop routes
    and 19 new destinations announced for 2007.  Delta provides
    service to more destinations than any global airline with
    Delta and Delta Connection carrier service to 304
    destinations in 52 countries.  Delta is the only airline to
    serve all 50 states and, through both its Atlanta and New
    York-JFK hubs, is the only carrier to serve to five
    continents from a single city.

-- Delta made significant investments in its customer products
    and services, including state-of-the-art, on-demand TV,
    movies, and music on many domestic and international
    flights; major improvements in airport facilities at Atlanta
    and New York-JFK; multiple new SkyMiles program features;
    and signature food and beverages on Delta flights worldwide
    with celebrity partners like Michelle Bernstein and Rande
    Gerber.

-- Delta improved functionality at delta.com - which celebrated
    its 10th anniversary in 2006 - including enhanced mobile
    device access and itinerary management, as well as
    comprehensive content in Spanish, with French, Italian,
    German and Portuguese availability coming soon.

-- Delta announced plans to enhance its mainline fleet with 28
    internationally-capable aircraft scheduled for delivery in
    2007-2009.

-- Delta announced the recall of nearly 2,500 employees,
    including more than 1,200 flight attendants, 300 pilots, and
    900 maintenance employees.

-- Through more than 100,000 messages and dozens of visits to
    Capitol Hill, employee and retiree grassroots advocacy
    pushed pension reform legislation through each step of the
    complex legislative process.  The Pension Protection Act of
    2006 was signed into law in August, enabling Delta to
    preserve its defined benefit pension plan for active and
    retired ground and flight attendant employees.

-- Delta employees earned 20 Shared Rewards payments in 2006,
    for top performance in on-time arrivals, completion factor
    and customer satisfaction. The total bonus amount per
    employee was $700, for a total payout of over US$30 million.

                 December Monthly Operating Report

Delta filed its Monthly Operating Report for December 2006 with
the U.S. Bankruptcy Court.  As reflected in that report, the
company recorded a US$1.8 billion net loss for the month.
Excluding reorganization and special items, the net loss was
US$103 million for the month, a US$255 million improvement over
December 2005.

                 Reorganization and Special Items

In the fourth quarter of 2006, Delta recorded US$1.8 billion in
net charges for reorganization and special items.  These items
are:

* A US$2.5 billion net charge for reorganization items,
   primarily consisting of:

   -- An allowed general, unsecured pre-petition claim in
      Delta's Chapter 11 case (Claim) of US$2.2 billion for the
      Pension Benefit Guaranty Corporation (PBGC) relating to
      the termination of Delta's primary qualified defined
      benefit pension plan for pilots (Pilot Plan), partially
      offset by an US$897 million liability for Pilot Plan
      pension costs previously recorded.

   -- An US$801 million Claim for retired pilots relating to the
      termination of their nonqualified pension benefits,
      partially offset by a US$387 million liability for pilot
      nonqualified pension costs previously recorded.

   -- A US$539 million Claim for pilot and non-pilot retirees
      relating to a reduction of their postretirement healthcare
      benefits.

   -- A US$181 million net charge for the restructuring of
      aircraft financing arrangements.

* A US$719 million income tax benefit from the reversal of
   accrued pension liabilities related to the Pilot Plan
   termination.

In the fourth quarter of 2005, Delta recorded a US$453 million
charge for reorganization and special items, including (1) a
US$277 million charge for reorganization items; and (2) a US$176
million net charge associated with pension and restructuring
items.

                 Important Financial Disclosure

Current holders of Delta's equity will not receive any
distributions under Delta's proposed Plan of Reorganization.
These equity interests would be cancelled upon the effectiveness
of the proposed Plan of Reorganization, which the company
believes will be shortly after the confirmation hearing
scheduled on April 25, 2007.  Accordingly, the company urges
that caution be exercised with respect to existing and future
investments in Delta's equity securities and any of Delta's
liabilities and other securities.

                      About Delta Air Lines

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


DIRECTV GROUP: Settles Misuse Programming Lawsuits in New York
--------------------------------------------------------------
DIRECTV is turning up the heat on restaurants and bars that are
misusing or misappropriating DIRECTV programming and recently
obtained a US$50,000 judgment against a New York bar.  DIRECTV
has also settled many other commercial misuse cases to date.

The US$50,000 judgment was the result of a civil lawsuit DIRECTV
filed against Bounce Deuce for violations of several federal
statutes, including the Cable Communications Act of 1984 (47
U.S.C. 605), which provides for statutory damages of up to
US$100,000 per violation.  The lawsuit against Bounce Deuce was
one of five complaints DIRECTV filed last year against
commercial establishments in New York and Florida.  DIRECTV has
several other commercial misuse investigations underway across
the country.

The judgment was entered against Bounce Deuce for its
unauthorized showing of the 2006 NFL SUNDAY TICKET(TM) package.
DIRECTV filed two other similar civil complaints against NY
commercial establishments in December.  Those cases are pending
in federal court.

In April 2006, DIRECTV filed civil complaints against two
Florida commercial establishments for the unauthorized public
display and misappropriation of DIRECTV residential service for
commercial purposes. Both matters have been resolved.

"Fraud and commercial misuse are on our front burner this year
and we will continue to aggressively target those bars and
restaurants who misrepresent themselves as residential accounts
to avoid paying the appropriate commercial fees," said James
Whalen, vice president, Office of Signal Integrity, DIRECTV,
Inc.  "This illegal activity is not taken lightly by us or the
courts and the fines under federal law are substantial."

                        About DIRECTV

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

                        *    *    *

As reported on Jan. 10, 2007, Standard & Poor's Ratings Services
affirmed its ratings on satellite direct-to-home TV provider The
Directv Group Inc., including the 'BB' corporate credit rating.
S&P said the outlook is stable.


ENESCO GROUP: Completes Asset Sale to Tinicum Capital Partners
--------------------------------------------------------------
EGI Acquisition, LLC, an affiliate of Tinicum Capital Partners
II, L.P., a private investment partnership, completed the
purchase of substantially all of the assets of Enesco Group,
Inc. and the assumption of certain of Enesco's unsecured
liabilities.

The U.S. Bankruptcy Court for the Northern District of Illinois
approved the transaction.

As reported in the Troubled Company Reporter on Jan. 24, 2007,
the purchase price for Enesco's business, operations and assets
included Enesco LLC's forgiveness of all amounts due under
Enesco's senior secured debtor-in-possession financing facility
and certain other obligations owed to Tinicum and its
affiliates, the assumption of certain of Enesco's liabilities,
and the establishment of a US$700,000 wind-down fund for
Enesco's use in its Chapter 11 bankruptcy case.

"This day marks the beginning of a new day and a new area for
Enesco," Basil Elliott, President and CEO of Enesco LLC,
commented.  "On behalf of all our employees around the globe, we
are very excited to begin a new chapter in our history, one that
focuses on growing our business and our brands profitably, while
providing our retail customers the quality service they demand.
We are confident that with our new partnership with Tinicum and
with our dedicated employees, we are poised for growth and will
once again become the leader within the giftware industry."

"We are very pleased that we have completed this transaction,"
Terence M. O'Toole, co-managing partner of Tinicum added.  "We
share Enesco's vision of growth and look forward to working with
the management team to unlock the full potential of this
business.  We are excited to realize the vision that Tinicum and
Enesco have for both the future of the business and the gift
industry.  We are confident that together we will create a
higher standard for best-quality products, design excellence and
superior customer service."

Enesco intends to file a plan of liquidation with the Court in
the near future, which will provide for the payment of Enesco's
bankruptcy-related expenses, the distribution of any residual
funds to remaining creditors and dissolution of the former
entity.  Enesco does not anticipate that there will be any
distribution to its shareholders.

A full-text copy of the Asset Purchase Agreement is available
for free at http://ResearchArchives.com/t/s?19ed

                       About Enesco Group

Headquartered in Itasca, Illinois, Enesco Group, Inc. --
http://www.enesco.com/-- designs, manufactures and markets
licensed and proprietary branded giftware, and home and garden
d,cor products to a variety of specialty gift, home decor, mass
market and direct mail retailers.  The company serves markets
operating in Europe, Australia, Mexico, Asia and the Pacific
Rim.

The company conducts its global business through its eight
active wholly owned subsidiaries and affiliated corporations,
including two subsidiaries in the United States, both of which
are also Debtors in these cases, and six subsidiaries in Canada,
the United Kingdom, France and Hong Kong.  The company sells its
products through its own employee-based sales organizations, as
well as independent sales agents and distributors in
approximately 25 countries around the world.

Enesco's product lines include some of the world's most
recognizable brands, including Heartwood Creek(TM) by Jim Shore,
Foundations(R), Pooh & Friends(R), Walt Disney Classics
Collections(R), Disney Traditions(R), Disney(R), Border Fine
Arts(TM), Cherished Teddies(R), Halcyon Days(R) and Lilliput
Lane(TM), among others.

Enesco Group and its two affiliates, Enesco International Ltd.
and Gregg Manufacturing, Inc., filed for chapter 11 protection
on Jan. 12, 2007 (Bankr. N.D. Ill. Lead Case No. 07-00565).  The
Debtors' financial condition as of Nov. 30, 2006, showed total
assets of US$155,350,698 and total debts of US$107,903,518.  The
Debtors' exclusive period to file a chapter 11 reorganization
plan expires on May 12, 2007.


GENERAL MOTORS: Provides Update on Accounting Issues
----------------------------------------------------
General Motors Corp. has substantially completed its previously
announced review of deferred income taxes as well as the
accounting for derivatives under Statement of Financial
Accounting Standards No. 133, Accounting for Derivative
Instruments and Hedging Activities.

GM has determined that its previously filed financial statements
and financial information for 2002 through the third quarter of
2006 should no longer be relied upon, largely due to adjustments
in hedge accounting.

GM's accounting adjustments under SFAS No. 133 are substantially
complete, although some work remains.  The current estimate of
the cumulative impact of these SFAS No. 133 adjustments to
retained earnings, including GMAC, as of Sept. 30, 2006, is an
increase of approximately $200 million.

In addition, GM previously disclosed that retained earnings as
of Dec. 31, 2001, and subsequent periods were understated by a
range of $450 million to $600 million due to an overstatement of
deferred tax liabilities.

GM currently estimates that the deferred tax liability
overstatement is approximately $1 billion.  This impact is
partially offset by an estimated $500 million adjustment to
stockholders' equity related to taxation of foreign currency
translation, arising primarily prior to 2002, and affects all
periods through the third quarter of 2006.

The net impact of such tax adjustments results in an
understatement of stockholders' equity as of Dec. 31, 2001, and
subsequent periods of approximately $500 million.

GM is currently working toward filing its Form 10-K with
restated financial information by the due date, March 1, 2007.
If necessary, it would expect to obtain an extension from the
SEC and file prior to the extended deadline, March 16, 2007.

GM does not expect these adjustments to have any material impact
on cash flow for any of the restated periods.

                     About General Motors Corp.

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

                        *     *     *

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

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


GRUPO FINANCIERO: Incurs ARS18.9 Million Net Loss in Fourth Qtr.
----------------------------------------------------------------
Grupo Financiero Galicia S.A. reported its consolidated
financial results for the fourth quarter and fiscal year ended
Dec. 31, 2006.

Net loss for the fiscal year ended Dec. 31, 2006, was ARS18.9
million, or ARS0.015 per share, equivalent to ARS0.150 per ADS,
taking into account the average shares outstanding during the
fiscal year.

During the same period, Banco de Galicia y Buenos Aires S.A.
showed a ARS72.2 million adjusted net income, and a
ARS126.2 million net loss after ARSPs.198.4 million loss from
adjustments to the valuation of public-sector assets.

During this fiscal year and the first days of 2007, the Bank
reduced its public sector exposure by US$7.4 billion, a 45.2%
reduction, and its debt with the Central Bank by US$7.3 billion,
an 85.0% reduction compared with the amount at Dec. 31, 2005.

Net loss for the quarter ended Dec. 31, 2006, was ARS92.2
million.  This loss was mainly due to the loss derived from:

   -- the company's interest in the Bank (ARS102.0 million),
   -- the financial income net of administrative expenses
      (ARS5.9 million)
   -- the deferred tax adjustment in the Bank's subsidiaries
      (ARS3.5 million),
   -- the income generated by the sale of GFG shares owned by
      the Bank and the income tax charge (ARS2.3 million).

The Bank showed a ARS25.1 million adjusted net income compared
to a ARS18.5 million adjusted net loss for the same quarter of
FY 2005.  Considering a ARS134.0 million loss from adjustments
to the valuation of public-sector assets, the Bank showed a
ARS108.9 net loss during this quarter.

                        Shareholders Meeting

On Oct. 11, 2006, the company celebrated a shareholders' meeting
which authorized Grupo to approve an increase of up to 100
million shares in the capital stock of its principal subsidiary,
Banco de Galicia.  The Board of Directors was authorized to
exercise the preemptive and accretion rights either totally or
partially and to subscribe the capital increase.

Grupo Financiero Banorte S.A. de C.V. is a holding company that
operates, through its subsidiaries, in the Mexican banking
industry.  The company's main activities include commercial,
personal and investment banking, securities trading, insurance,
pension funds, leasing and credit financing.  Its two main
subsidiaries are Banorte (96.11%) and Bancentro (99.99%), which
both offer personal and commercial banking services such as
credit and debit cards, insurance products, savings accounts and
mortgage financing.  As of Dec. 31, 2005, Grupo Financiero
Banorte run a total of 986 offices and over 2,800 automated
teller machines across Mexico.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Aug. 2, 2006, Fitch upgraded the Ratings of Mexico's Grupo
Financiero Banorte Foreign & local currency IDR to 'BBB' from
'BBB-'; Short-term local currency to 'F2' from 'F3'; and
Individual to 'C' from 'C/D'.  Fitch said the ratings outlook is
stable.  Fitch also affirmed the GFNorte's Short-term foreign
currency IDR at 'F3'; and Support at '5'.


KRISPY KREME: Completes US$160 Million Credit Refinancing
---------------------------------------------------------
Krispy Kreme Doughnuts, Inc. has closed a new senior secured
credit facility aggregating US$160 million, comprised of a
US$50 million revolving credit facility and a US$110 million
term loan.

The revolving facility has a six-year term ending in February
2013.  The term loan amortizes in quarterly installments of
US$275,000 beginning in April 2007 with a final payment of the
remaining term loan balance due in February 2014.  The revolving
credit facility provides that up to US$30 million of this
facility may be used by the Company to obtain letters of credit.
The new facility may be retired without penalty at any time.

Proceeds of the term loan were used to repay the approximately
US$107 million outstanding balance under the Company's prior
credit facility (which was retired), and to pay fees and
expenses related to the new financing and the retirement of the
prior facility.  The Company will record a pretax charge of
approximately US$9.6 million in the quarter ending April 29,
2007, representing the prepayment fee related to the prior
facility and the write-off of unamortized deferred financing
costs related to the prior facility.

The new term loan bears interest at LIBOR plus 3.00% (subject to
a stepdown based on credit ratings), compared to LIBOR plus
5.875% (and which had been LIBOR plus 7.25% from Dec. 12, 2005
through Jan. 28, 2007) under the retired term loan.

The new credit facility will be filed as an exhibit to a current
report on Form 8-K, which will be made available on the
company's Web site promptly after its filing with the Securities
and Exchange Commission.  Credit Suisse arranged the facilities
as sole bookrunner, sole lead arranger and administrative agent.

                     About Krispy Kreme

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

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

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

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

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


MOVIE GALLERY: Inks Deal With Goldman Sachs for Refinancing
-----------------------------------------------------------
Movie Gallery, Inc. has executed an underwritten financing
commitment with Goldman Sachs Credit Partners L.P. for
the refinancing of the company's existing senior secured credit
facility.  The company has authorized Goldman Sachs Credit
Partners L.P. to act as sole lead arranger for the transaction,
which it expected to close in the first quarter of 2007.

The company used the funds from the proposed credit facilities
to:

   * refinance its existing senior secured credit facility;

   * replace existing letters of credit;

   * provide for working capital;

   * pay fees and expenses associated with the proposed credit
     facilities; and

   * other general corporate purposes.

"The new credit facilities provided Movie Gallery with
additional financial flexibility to carry out the company's
business plan for the future," Joe Malugen, Chairman and Chief
Executive Officer of Movie Gallery commented.  "Movie Gallery
was pleased to have this financing commitment from Goldman Sachs
and look forward to executing on the company's strategy to
deliver renewed growth and profitability for Movie Gallery's
shareholders."

The proposed credit facilities were expected to have a five-year
maturity and will contain certain affirmative and negative
covenants that were usual and customary for financings of this
kind, including certain financial covenants.

                      About Movie Gallery

Movie Gallery, headquartered in Dothan, Alabama, is a provider
of in-home movie and game entertainment in the United States. It
operates over 4,650 stores in the United States, Canada, and
Mexico under the Movie Gallery, Hollywood Entertainment, Game
Crazy, and VHQ banners.  Pro forma revenues for fiscal year 2005
were US$2.6 billion.

                            *    *    *

Standard & Poor's Ratings Services changed its outlook on Movie
Gallery Inc. to positive from negative.  At the same time, the
company's ratings, including the 'CCC+' corporate credit and
bank loan ratings, were affirmed.


SALLY HOLDINGS: S&P Says Chapelton 21 Buy Won't Affect Ratings
--------------------------------------------------------------
Standard & Poor's Ratings Services said that there would be no
immediate impact on Denton, Texas-based Sally Holdings Inc.'s
(B/Stable/--) ratings, including the 'B' corporate credit
rating, following the company's announcement that it will
purchase Chapelton 21 Ltd. for about US$59 million.

Chapelton 21, with locations in the U.K., Ireland, Germany, and
Spain, will add about 80 units to Sally Holdings.  The company
plans to finance the acquisition primarily through a US$57
million draw down under its existing asset-based revolving
credit facility.  Standard & Poor's believes that the
acquisition will not materially alter credit metrics for Sally
Holdings and that cash flow protection measures will remain
appropriate for the 'B' rating.

Sally Holdings, Inc., headquartered in Denton, Texas, will be a
leading national retailer and distributor of beauty supplies
with operations under its Sally Beauty Supply and Beauty Systems
Group businesses.  For the fiscal year ended Sept. 30, 2005, New
Sally's revenues exceeded US$2.2 billion.  The company has
stores in Canada, Mexico, Puerto Rico, the U.K., Ireland,
Germany and Japan.


VALASSIS COMMS: Expects to Get US$590MM from Sr. Notes Offering
----------------------------------------------------------------
Valassis Communications Inc. intends to offer senior unsecured
notes that are expected to generate US$590 million of gross
proceeds.

The proceeds of these notes are expected to be used to finance
the company's pending acquisition of ADVO Inc., refinance
approximately US$125 million of outstanding ADVO debt and pay
related fees and expenses.  The consummation of the note
offering is contingent upon the consummation of the ADVO
acquisition.  The notes will be offered to qualified
institutional buyers under Rule 144A and to persons outside the
United States under Regulation S.

The company said that the notes to be offered have not been
registered under the Securities Act of 1933, as amended, and
will not be offered or sold in the United States absent
registration or an applicable exemption from the registration
requirements.

Headquartered in Livonia, Michigan, Valassis Communications Inc.
(NYSE: VCI) -- http://www.valassis.com/-- provides marketing
services to consumer-packaged goods manufacturers, retailers,
technology companies and other customers with operations in the
United States, Europe, Mexico and Canada.  Valassis' products
and services portfolio includes: newspaper-delivered promotions
and advertisements such as inserts, sampling, polybags and
on-page advertisements; direct-to-door advertising and sampling;
direct mail; Internet-delivered marketing; loyalty marketing
software; coupon and promotion clearing; and promotion planning
and analytic services.  Annual revenue will approximate
US$2.5 billion upon completion of the ADVO acquisition.

As reported in the Troubled Company Reporter-Latin America on
Feb. 19, 2007, Moody's Investors Service assigned a B3 rating to
Valassis Communications, Inc.'s proposed US$590 million of fixed
and floating rate senior unsecured notes due 2015.  Moody's
Feb. 12, 2007, rating action on Valassis contemplated the
issuance of US$590 million of junior debt in conjunction with
the acquisition of ADVO and the company's existing ratings are
not affected by the issuance of the new senior unsecured notes.
Valassis' Corporate Family rating is B1 and the rating outlook
remains stable.

As reported in the Troubled Company Reporter-Latin America on
Feb. 19, 2007, Standard & Poor's Ratings Services assigned its
'B-' rating to Valassis Communications Inc.'s proposed US$590
million senior unsecured notes.


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


CHIQUITA BRANDS: Names Michael Holcomb as Corporate Sales VP
------------------------------------------------------------
Chiquita Brands International has appointed Michael J. Holcomb,
47, to vice president of corporate sales and customer
development, where he will be responsible for the company's
global sales organization.  Mr. Holcomb will report to Fernando
Aguirre, chairman and chief executive officer, and will serve on
the company's Management Committee.

"Mike has more than 20 years of experience in the consumer
packaged goods industry, and during his career, he consistently
delivered sustainable, profitable growth," said Mr. Aguirre.  "I
am confident that Mike will successfully continue to integrate
the Chiquita and Fresh Express high-performance sales teams.  We
believe his expertise will help to ensure that our united,
global sales force effectively leverages the proven value-
selling approach that forms the core of our sales philosophy and
growth strategy."

Mr. Holcomb comes to Chiquita from the Kao Brands Co., a
US$11 billion consumer packaged goods company based in Japan.
Most recently, he served as vice president and general manager -
international, working with brands including John Frieda,
Jergens, Curel, Ban and Biore.  While leading Kao's U.S. sales
division for three years, he helped the organization deliver
double-digit revenue growth and record profitability.

Prior to joining Kao, Mr. Holcomb served as executive vice
president and general manager of client service for three years
at Information Resources Inc., which provides of strategic sales
and marketing information and analysis for CPG manufacturers and
retailers.  In that role, he led a multifunctional executive
team to service numerous Fortune 500 CPG companies.  Mr. Holcomb
began his career at the Procter & Gamble Co., where he worked
for 18 years in numerous grocery and beauty care sales and
business development roles in North America and Asia.

Mr. Holcomb succeeds Jim Gallagher, who is leaving the company
to pursue a business opportunity funded by private equity.

                  About Chiquita Brands

Cincinnati, Ohio-based Chiquita Brands International, Inc.
(NYSE: CQB) -- http://www.chiquita.com/-- markets and
distributes fresh food products including bananas and nutritious
blends of green salads.  The company markets its products under
the Chiquita(R) and Fresh Express(R) premium brands and other
related trademarks.  Chiquita employs approximately 25,000
people operating in more than 70 countries worldwide, including
Panama.

                        *    *    *

On Nov. 6, Moody's Investors Service downgraded the ratings for
Chiquita Brands L.L.C., as well as for its parent Chiquita
Brands International, Inc.  Moody's said the outlook on all
ratings is stable.

This rating action follows the company's announcement that had
incurred a USUS$96 million net loss for its 2006 third quarter.

Standard & Poor's Ratings Services also lowered its ratings on
Cincinnati, Ohio-based Chiquita Brands International Inc.,
including its corporate credit rating, from 'B+' to 'B'.

S&P said the ratings remain on CreditWatch with negative
implications where they were placed on Sept. 26.




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


CFG INVESTMENT: Moody's Affirms B1 Rating on Sr. Unsecured Notes
----------------------------------------------------------------
Moody's Investors Service has affirmed its B1 rating for CFG
Investment SAC's senior unsecured notes, which are
unconditionally and irrevocably guaranteed by China Fishery
Group Ltd or CFG, following the issuance's completion.  At the
same time, Moody's has affirmed CFG's B1 corporate family
rating.  Moody's has also removed both ratings from their
provisional status.  The ratings outlook is stable.

China Fishery Group Ltd's main operations are deep-sea
industrial fishing in the Pacific and the provision of
management services for fishing vessels.  It employs over 600
crew and officers.  Its catches are processed onboard and
frozen, packed and delivered to market.  It recently acquired
Alexandra SAC, which operates in Peru's fishing and fishmeal
processing markets.


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


ADELPHIA COMMS: Can Distribute TWC Shares to Creditors
------------------------------------------------------
Adelphia Communications Corporation and its debtor-affiliates
obtained US$12.5 billion in cash and approximately 16% of the
equity of Time Warner's cable subsidiary, as consideration of
the sale of substantially all of ACOM's assets to Time Warner
and Comcast Corporation.

Pursuant to the Plan, ACOM will distribute to creditors the
shares of Time Warner Cable, Inc., stock.

According to Bloomberg, Time Warner Cable shares rose as much as
1% after news of the ruling.  They closed down 50 cents at
US$41.25 in over-the-counter trading.  Time Warner Cable shares
were traded at US$41 a share at the close of trading on
February 12.

As reported in the Troubled Company Reporter on Feb. 13, 2007,
to comply with existing contractual obligations under the
Registration Rights Agreement previously approved by the
Honorable Robert E. Gerber of the U.S. Bankruptcy Court for the
Southern District of New York, the ACOM Debtors must pursue a
"dual track" strategy until the commencement of distributions
under the Fifth Amended Plan.  The ACOM Debtors then sought
authority from Court to:

   (a) approve certain procedures relating to their potential
       sale pursuant to a firm fully underwritten public sale of
       no less than 33-1/3% -- inclusive of any shares sold
       pursuant to the overallotment options granted to the
       Underwriters -- of the TWC Stock received by the ACOM
       Debtors and the Escrow Agent in connection with the Sale
       Transaction;

   (b) allow the Debtors to enter into an underwriting agreement
       with certain underwriters, in connection with the Public
       Sale and other agreements as necessary or advisable to
       effectuate the Public Sale; and

   (c) allow the sale of the TWC Stock to be offered in the
       Public Sale to the Underwriters free and clear of
       Interests.

                      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.

The Court confirmed the ACOM Debtors' First Modified Fifth
Amended Joint Chapter 11 Plan of Reorganization  on Jan. 3,
2007.  That Plan became effective Feb. 13, 2007.


ADELPHIA COMMS: Reports Number of Contingent Value Vehicle Units
----------------------------------------------------------------
Adelphia Communications Corp. has disclosed a number of
outstanding units in the various series of interests in the
Adelphia Contingent Value Vehicle, which is summarized in a
chart of the distribution of certain classes of claims.  The CVV
is a Delaware Statutory Trust that was formed pursuant to the
First Modified Fifth Amended Joint Chapter 11 Plan of
Reorganization of Adelphia Communications Corp. and Certain
Affiliated Debtors, dated as of Jan. 3, 2007, as confirmed, to
hold certain litigation claims against Adelphia's third party
lenders and accountants and other parties.  Each series of CVV
Interests has the rights and priorities relative to the other
series of CVV Interests determined in accordance with the
Adelphia Plan of Reorganization.

                         Adelphia's Plan

As reported in the Troubled Company Reporter on Jan. 9, 2007,
the confirmed First Modified Fifth Amended Joint Chapter 11 plan
of reorganization of Adelphia and Certain Affiliated Debtors
became effective on Feb. 13, 2007.

The Distribution Record Date for distributions under the Plan to
holders of Notes Claims and Equity Interests was set last
Feb. 13, 2007 at 4:00 p.m. (Eastern Standard Time).  Jan. 10,
2007 at 4:00 p.m. (Eastern Standard Time) is the Distribution
Record Date for holders of all Claims other than Notes Claims
and Equity Interests.

A full-text copy of the chart of the distribution of certain
classes of claims is available for free at:

              http://ResearchArchives.com/t/s?19d0

Inquiries regarding the CVV Interests should be directed to
creditor.inquiries@adelphia.com

                   About Adelphia Communications

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.

The Court confirmed the ACOM Debtors' First Modified Fifth
Amended Joint Chapter 11 Plan of Reorganization  on Jan. 3,
2007.  That Plan became effective Feb. 13, 2007.


FIRST BANCORP: Issues 9.25 Million Shares to Scotiabank
-------------------------------------------------------
First BanCorp has entered into a definitive agreement to issue
approximately 9.250 million shares of its common stock to
Scotiabank, through a private placement offering, valuing the
stock at US$10.25 per share for a total purchase price of
approximately US$94.8 million.  The valuation reflects a premium
of approximately 5% over the volume weighted- average closing
share price over the 30-trading day period ending Jan. 30, 2007.
After the investment, Scotiabank will hold 10% of First
BanCorp's then outstanding common shares.

"This investment signals a vote of confidence in the financial
strength of First BanCorp, in the value of the FirstBank
franchise and in the professionalism and capability of our
management team," said Luis Beauchamp, President and Chief
Executive Officer of First BanCorp.  "Scotiabank is a premier
global financial institution and Canada's most international
bank, and we welcome them as an institutional shareholder
joining other institutional investors who hold equity positions
in First BanCorp."

First BanCorp has agreed to give Scotiabank notice if any
decision to commence a process involving the sale of First
BanCorp during the 18 months after Scotiabank's investment is
made, and to negotiate with Scotiabank exclusively for 30 days
thereafter if Scotiabank so requests.  In addition, during the
18-month period Scotiabank may give notice to First BanCorp
providing its offer for the acquisition of the Corporation.
First BanCorp has agreed to negotiate the offer received on an
exclusive basis for a period of 30 days.  Also, First BanCorp
has agreed to give Scotiabank notice of the terms of any
proposed acquisition received from a third party during the 18-
month period and to allow Scotiabank five business days to
indicate whether it will present a counteroffer.  Finally,
Scotiabank may have a non-voting observer at First BanCorp's
director meetings so long as Scotiabank holds 5% of First
BanCorp's stock.

Mr. Beauchamp added, "This private placement further strengthens
First BanCorp's capital position, which will enhance the
implementation of its corporate strategies."  The private
placement, which has been approved by First BanCorp's Board of
Directors, and is subject to regulatory approvals, is expected
to close within ninety days.

UBS Investment Bank served as placement agent and acted as First
BanCorp's financial advisor in the offering.

                         About Scotiabank

Scotiabank (TSX, NYSE: BNS) -- http://www.Scotiabank.com/-- is
one of North America's financial institutions and Canada's most
international bank.  With close to 57,000 employees, Scotiabank
and its affiliates serve approximately 12 million customers in
some 50 countries around the world.  Scotiabank offers a diverse
range of products and services, including personal, commercial,
corporate and investment banking.  With US$379 billion in assets
(as of October 31, 2006), Scotiabank trades on the Toronto (BNS)
and New York (BNS) Stock Exchanges.

                        About First BanCorp

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

                        *    *    *

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

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


UNIVISION COMMS: Fitch May Downgrade Ratings on Debt Increase
-------------------------------------------------------------
Fitch expects to downgrade the Issuer Default Rating for
Univision Communications Inc to 'B' from 'BB' and expects to
rate the proposed financings as:

   -- US$750 million revolving senior secured credit facility
      due 2014 'B+/RR3';

   -- US$7 billion senior secured term loans due 2014 'B+/RR3';

   -- US$500 million second lien term loan due 2009
      'B-/RR5'; and

   -- US$1.5 billion senior unsecured notes due 2015 'CCC+/RR6'.

The expected ratings actions reflect material increases in the
company's debt post closing of the US$14 billion merger
agreement with a private equity group that includes Madison
Dearborn Partners, Providence Equity Partners, Texas Pacific
Group, Thomas H. Lee Partners and Saban Capital Group.

Fitch expects to downgrade the ratings of the approximately
US$950 million of existing outstanding notes to 'B+/RR3' from
'BB'.  Fitch expects the 3.5% notes due 2007 and the 3.875%
notes due 2008 to be paid down utilizing a US$450 million
committed delay-draw bank facility that, per the company, is
intended to be used to refinance such notes.  In addition, the
company expects to divest certain non-core music and radio
assets, and the proceeds will be well in excess of the amount
required to pay down the US$500 million second lien term loan.

The assignment of these ratings is pending closing and review of
the final transaction documentation.  Fitch also expects that
the Negative Rating Watch will be resolved and the Outlook will
then be Stable.

Concerns include Fitch's expectations for weak pro forma metrics
over the intermediate term, event risk related to the company's
on-going disputes with content provider Grupo Televisa S.A.
(rated 'BBB' Stable Outlook by Fitch), and decreased operating
and financial flexibility as a result of the transaction.  The
rating is supported by the company's strong market position in
U.S. Spanish-language television, favorable demographic trends
of target Spanish-language audience, and Fitch's expectations
for continued strong operating performance over the intermediate
term.  The expected Stable Outlook is based on the company's
stable operating performance over the past few years and
liquidity that will include US$750 million of revolver
availability, no principal amortization on the term loans for
the first three years, and a Paid-In-Kind or PIK interest option
on the company's US$1.5 billion senior note offering.

Fitch estimates interest coverage in the 1.5x - 2x range
(depending on the company's decision to use its PIK option) over
the intermediate term with leverage approximating 12x at the
time of the closing.  Assuming proceeds and FCF is used for debt
repayment, Fitch expects leverage to improve to the 8x range by
2009 from asset sales and continued strong operating
performance.

The expected ratings also incorporate event risk related to the
company's on-going disputes with content provider Grupo Televisa
who last year claimed a material breach by Univision of the
Programming License Agreement or PLA.  The company receives
content for approximately 40% of its broadcast hours from
Televisa through the PLA that extends through 2017.  Since June
2005, the two companies have filed several lawsuits and counter-
claims including Televisa's claim of a material breach of the
PLA by Univision that was filed February 2006.  While the
outcome of these claims are uncertain, Fitch believes the
relationship between these entities has clearly been strained
and the outcome of this dispute increases event risk and re-
financing risk for lenders and is a negative rating factor
despite all currently contemplated debt offerings maturing prior
to the 2017 PLA expiration.

Fitch expects the company to continue its strong operating
performance with high-single digit revenue growth very likely
over the intermediate term.  Due to cost cuts over the last two
years, Fitch believes the company's operating leverage has
improved and should result in mid-double digit EBITDA growth.
The company's audience reach has typically not resulted in a
commensurate share of advertising revenue for the company and
while Fitch does not believe the entire shortfall will be
materially bridged over the intermediate term, the recent
inclusion into the Nielsen Ratings Index and the upcoming
elimination of the Hispanic-only Index should benefit the
company and support our growth expectations.

The recovery ratings and notching reflect Fitch's recovery
expectations under a distressed scenario.  Univision's recovery
ratings reflect Fitch's expectation that the enterprise value of
the company, and hence, recovery rates for its creditors, will
be maximized in a restructuring scenario (going concern), rather
than a liquidation.  The 'B+' rating for the secured facilities
(including the existing outstanding senior notes) reflects
Fitch's expectations for 51%-70% recovery under a bankruptcy
scenario.  The 'B-' rating on the second lien term loan reflects
Fitch's expectations of 11%-30% recovery under a bankruptcy
scenario while the 'CCC+' rating on the company's senior
unsecured note offering reflects Fitch's expectations for de
minimis recovery prospects due to its position in the capital
structure.

Univision is the leading Spanish-language media company in the
U.S., with diversified operations in TV, radio, Internet, and
music.

Headquartered in Los Angeles, Calif., Univision Communications
Inc., -- http://www.univision.net/-- owns and operates more
than 60 television stations in the U.S. and Puerto Rico offering
a variety of news, sports, and entertainment programming.  The
company had about US$1.4 billion in debt at March 31, 2006.




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


GERDAU SA: Reports BRL3.5 Billion Net Income in 2006 Fiscal Year
----------------------------------------------------------------
Gerdau SA's net consolidated profit for fiscal year 2006 reached
BRL3.5 billion, an increase of 7.6% compared to 2005.  Net
margin reached 14.9%.

The company's Consolidated gross revenues reached
BRL27.5 billion in 2006, 7.2% greater than in fiscal year 2005.
The company reported revenues from companies abroad added to
exports from Brazil represented 62.6% of the consolidated gross
revenues in 2006.

Total shipments from Brazil to foreign clients totaled 2.9
million metric tons in 2006, and generated revenues of
US$1.2 billion in the period.

EBITDA for the fiscal year of 2006 (gross profit, minus cost of
sales, general and administrative plus depreciation and
amortization) reached BRL5.3 billion compared to BRL5.1 billion
in 2005, an increase of 5.4% over the last year.  EBITDA margin
reached 22.7%.

The Gerdau companies in 2006 produced 15.6 million metric tons
of crude steel (slabs, blooms and billets), 13.9% more than in
2005.  Output of rolled products reached 12.7 million metric
tons, presenting an increase of 17.7% in 2006.

Gerdau announced on November 21, a new phase in the evolution of
its Corporate Governance processes.  As of Jan. 1, 2007, the
company's executive leadership is in the hands of the new
generation.

                  Fourth Quarter 2006 Performance

Output and Sales

Crude steel output for the fourth quarter of 2006 totaled 3.8
million metric tons, 5.3% less than in the third quarter.  This
is due mainly to the seasonality of the period especially in
North America.  In fiscal year 2006, however, there was a growth
of 13.9% compared to 2005, with a volume of 15.6 million metric
tons.  This performance reflects the improvements in the several
operations in the different regions in which the company is
present as well as to the consolidation of units acquired in the
last two years.

Fourth quarter 2006 consolidated sales totaled 3.7 million
metric tons, presenting a slight reduction of 0.9% compared to
the third quarter of the same year. Of this volume, 45.5% was
produced in Brazil and the remaining 54.5% at the companies
abroad. Consolidated sales for the full year reached 14.8
million metric tons, presenting an increase of 9.4% over those
of 2005.

In Brazil, the customary slowing down of economic activity in
the fourth quarter as a result of holidays in November and
December impacted Gerdau's sales in the period.  In spite of
this, domestic sales surpassed company estimates and presented
an increase of 12.6%.

Exports in the fourth quarter, including exports to
subsidiaries, totaled 859.6 thousand metric tons, 34.9% more
than in the third quarter and generated revenues of US$390.5
million in the period.

Sales in the fourth quarter abroad were 9.2% lower compared to
those of the third quarter.  This reflects mostly the
seasonality effects in North America. For the full year,
however, shipments surpassed full year 2005 by 18.5%.

Revenues from operations abroad plus exports from Brazil
generated 68.1% of consolidated net revenues of the last
quarter.

Gross profit reached BRL1.4 billion in the fourth quarter,
presenting a consolidated gross margin of 24.4% in the period.
In comparison with that of the third quarter, as shown in the
chart on the right, margins presented reductions mainly due to
the following reasons:

a) increase in exports in which the bulk of products are slabs,
    blooms and billets;

b) reduction of the average export prices;

c) smaller domestic shipments;

d) increase in the cost of some inputs, especially scrap (in
    Brazil); and

e) decrease in sales at the North American operations which
    increased fixed costs per ton sold.

Operating expenses (sales, general and administrative) totaled
BRL556.5 million in the fourth quarter, presenting an increase
of 9.1% compared to those of the third quarter.   This increase
is explained mostly by the increase in exports (increase in port
services costs), the accounting of PIS/COFINS over interest on
capital stock paid in the fourth quarter.

Operational cash generation represented by EBITDA, reached
BRL1.1 billion in the fourth quarter, lower than the amount
generated in the third quarter.  This is due to the reduction in
revenues and to the increase in expenses mentioned before.  As a
consequence, EBITDA margin dropped to 19.3% from 25.5% in the
previous quarter.

Net financial revenues in the fourth quarter (financial revenues
minus financial expenses) totaled BRL117.0 million.  Excluding
revenues with FX variations resulting from the appreciation of
the real in the period over indebtedness in foreign currency
(BRL63.9 million), and expenses of monetary variations of
(BRL25.7 million), net financial revenues totaled BRL78.8
million in the quarter.  It is worth noting that financial
expenses in the third quarter were impacted by the anticipation
of Gerdau Ameristeel debentures and by the negative impact of FX
variations over indebtedness in foreign currency contracted by
companies in Brazil.

On Dec. 28, 2006, Corporacion Sidenor, S.A., Spain, in which
Gerdau has a stake of 40%, concluded the acquisition of GSB
Acero, S.A., in Guipuzcoa, Spain.  This company produces
approximately 200 thousand metric tons of long specialty steels
per annum.  The investment for the acquisition was of EUR111.5
million, in addition of a net debt of about EUR11 million, in a
total of EUR122.5 million (US$157.0 million).

On Nov. 16, 2006, Gerdau bought in a public auction an
additional stake of 32.84% of the stock capital of Empresa
Siderurgica del Peru S.A.A. - Siderperu in Chimbote, Per). With
this acquisition, that cost US$ 40.5 million, Gerdau now has
83.27% of the capital stock.  Siderperu is a manufacturer of
both flat and long steel and has annual sales of approximately
400 thousand metric tons of finished products.  Approximately
20% of sales are of flat steel and the remaining 80% is long
steel.

Indebtedness

Net debt (loans and financing plus debentures minus cash and
cash equivalents) was BRL3.1 billion on Dec. 31, 2006, 7.2%
superior to that of Sept. 30, 2006.

Taking gross debt only (loans and financing plus debentures),
21.6% was short term (BRL2.0 billion) and 78.4% long term
(BRL7.1 billion).  The average indebtedness maturity was of 9
years and 2 months in December 2006.

On Dec. 31, 2006, gross debt was composed of 27.7% in Brazilian
currency, 47.0% in foreign currency at Brazilian companies and
25.3% in different currencies contracted by subsidiaries abroad.

At the end of fiscal year 2006, cash and cash equivalents
totaled BRL6.0 billion, of which BRL2.2 billion (36.5%) were
pegged to foreign currencies, mainly the US dollar.

Dividends for the fourth quarter 2006

   -- Payment on March 6, 2007, based on stock holdings on
      February 21 (ex-dividend on February 22).

   -- Shareholders will be paid a total of BRL231.9 million.

   -- Year-to-date: BRL895.1 million, with a yield (dividend per
      share/price of share on December 31) of 3.9%.

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;

                        *    *     *

As reported on Dec. 6, 2006, Moody's Investors Service upgraded
the global local currency corporate family rating of Gerdau SA
to Ba1 from Ba2, following the upgrade to Ba1 from Ba2 of Gerdau
Ameristeel Corp., the group's operational subsidiary in North
America that represents some 46% of consolidated revenues and
34% of group's EBITDA.  Moody's said the rating outlook is
stable.


=================
V E N E Z U E L A
=================


AMERICAN COMMERCIAL: S&P Withdraws BB- Corporate Credit Ratings
---------------------------------------------------------------
Standard & Poor's Ratings Services withdrew its 'BB-' long-term
corporate credit ratings on American Commercial Lines Inc.
following the successful completion, by subsidiary American
Commercial Lines LLC, of its tender offer for its 9 % senior
notes due 2015.  Standard & Poor's had indicated, on Jan. 18,
2007, that ratings were likely to be withdrawn.

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.


CITGO PETROLEUM: Sending 80MM Gallons of Discounted Fuel to US
--------------------------------------------------------------
Citgo Petroleum SA will send 80 million gallons of discounted
heating oil to over one million US residents, the United Press
Institute reports.

Citgo Petroleum partners with Massachusetts-based Citizens
Energy Corp. for the program, distributing the discounted fuel
through a normal supply line to 16 US states.

Citgo Petroleum Public Affairs Manager Fernando Garay told the
United Press that more than 400,000 households in the US could
qualify for 200 gallons of heating oil in 2007 at 40% off the
regular price, as part of the Citgo-Venezuela Heating Oil
Program.

About 1.2 million low-income residents could get the discount
fuel.  Citgo Petroleum commercials are now airing in the US
urging consumers to call a hotline to see if they qualify, the
United Press says, citing Mr. Garay.

The Citgo Petroleum program is similar with the US Low Income
Home Energy Assistance Program.  However, the Citgo Petroleum
initiative is broader than that of the US.  A beneficiary of the
US program automatically qualifies for the Citgo Petroleum
program, Mr. Garay told the United Press.

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

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

                        *    *    *

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

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


CMS ENERGY: Selling 70% Seneca Stake to Petroleos de Venezuela
--------------------------------------------------------------
CMS Energy Corp. has signed a preliminary accord to sell its 70%
stake in Sistema Electrico del Estado Nueva Esparta aka Seneca
to Venezuelan state-run oil firm Petroleos de Venezuela SA for
VEB404.1 billion.

The Venezuelan government decided to nationalize Seneca as part
of its strategy to nationalize power firms.

Petroleos de Venezuela President and Energy and Oil Minister
Rafael Ramirez told Business News Americas, "A memorandum of
understanding has been signed."

The agreement will be finalized by March 31 at the latest,
BNamericas relates, citing Minister Ramirez.

"There will be no problem whatsoever for our clients," Minister
Ramirez told BNamericas.

CMS Energy will earn about US$88 million from the sale.  Some
charges will be deducted from the lease of generation equipment
it is renting from state power company Cadafe.  The rented
equipment will be retained under Seneca's new management.

CMS Energy Vice President Joseph Tomasik told BNamericas, "We
oversaw 40% growth in new customers and a 55% increase in energy
demand."

The CMS board will have to ratify the memorandum of
understanding before the sale is finalized, BNamericas states,
citing Mr. Tomasik.

                        About Seneca

Seneca is a distribution company for Nueva Esparta.  It has
94,212 customers in a 1,150 square kilometer distribution
territory, and total installed gas-fired capacity of 250.4
megawatts.  It operates two plants: Planta Luisa Caceres de
Arismendi serving the Isla de Margarita and Planta Coche serving
the Isla de Coche.

                About Petroleos de Venezuela

Petroleos de Venezuela SA -- http://www.pdv.com/--
isVenezuela'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, 2006, that it may lower the
company's B+ foreign-currency debt rating in part because of the
absence of timely financial and operating information.

                       About CMS Energy

Headquartered in Jackson, Michigan, Consumers Energy Company
-- http://www.consumersenergy.com/-- a wholly owned subsidiary
of CMS Energy Corporation, is a combination of electric and
natural gas utility that serves more than 3.3 million customers
in Michigan's Lower Peninsula.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Feb. 15, 2007, Moody's Investors Service affirmed the ratings of
CMS Energy (Ba1 Corporate Family Rating) and Consumers Energy
(Baa2 senior secured) and revised the rating outlook of both to
positive from stable.  Moody's also affirmed CMS Energy's SGL-2
rating.


PETROLEOS DE VENEZUELA: To Acquire Majority Stake in Seneca
-----------------------------------------------------------
Venezuelan state-run oil firm Petroleos de Venezuela SA has
signed a preliminary accord to acquire a 70% stake in Sistema
Electrico del Estado Nueva Esparta aka Seneca from CMS Energy
Corp. for VEB404.1 billion.

The Venezuelan government decided to nationalize Seneca as part
of its strategy to nationalize power firms.

Petroleos de Venezuela President and Energy and Oil Minister
Rafael Ramirez told Business News Americas, "A memorandum of
understanding has been signed."

The agreement will be finalized by March 31 at the latest,
BNamericas relates, citing Minister Ramirez.

"There will be no problem whatsoever for our clients," Minister
Ramirez told BNamericas.

CMS Energy will earn about US$88 million from the sale.  Some
charges will be deducted from the lease of generation equipment
it is renting from state power company Cadafe.  The rented
equipment will be retained under Seneca's new management.

CMS Energy Vice President Joseph Tomasik told BNamericas, "We
oversaw 40% growth in new customers and a 55% increase in energy
demand."

The CMS board will have to ratify the memorandum of
understanding before the sale is finalized, BNamericas states,
citing Mr. Tomasik.

                        About Seneca

Seneca is a distribution company for Nueva Esparta.  It has
94,212 customers in a 1,150 square kilometer distribution
territory, and total installed gas-fired capacity of 250.4
megawatts.  It operates two plants: Planta Luisa Caceres de
Arismendi serving the Isla de Margarita and Planta Coche serving
the Isla de Coche.

                      About CMS Energy

CMS Energy Corp. is an integrated energy holding company that
operates through two principal subsidiaries, Consumers Energy
Co. (Consumers) and CMS Enterprises Co. (Enterprises).  The
company primarily operates in Michigan, United States.
Consumers is a public utility company that provides natural gas
and/or electricity to approximately 6.5 million Michigan
residents, and serves customers in the Lower Peninsula counties.
Enterprises, through various subsidiaries and affiliates, is
engaged in diversified energy businesses in the United States
and in selected international markets.  Enterprises is involved
in independent power production, electric distribution, and
natural gas transmission, storage and processing.  CMS Energy
operates in three business segments: electric utility, gas
utility and enterprises.

                About Petroleos de Venezuela

Petroleos de Venezuela SA -- http://www.pdv.com/--
isVenezuela'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, 2006, that it may lower the
company's B+ foreign-currency debt rating in part because of the
absence of timely financial and operating information.




                            ***********


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

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