TCRLA_Public/070228.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

          Wednesday, February 28, 2007, Vol. 8, Issue 42

                          Headlines

A R G E N T I N A

BHN IV: S&P Puts raD Rating on US$24.38-Mil. Series B Security
GREIF INC: Board Approves 2-for-1 Stock Split Payable April 11
PETROLEOS DE VENEZUELA: Purchase Talks for Rhasa Underway
SANCOR: Getting US$20 Mil. from Venezuela to Meet March Payments

* ARGENTINA: State Oil Firm Partners with PDVSA for Rhasa Buy

B A R B A D O S

HILTON HOTELS: Reduced Leverage Cues Moody's to Up Rating to Ba1

B E R M U D A

KEPLER HOLDINGS: Moody's Assigns (P)Ba2 Rating on US$200MM Loan
NEW PEMBROKE: Final General Meeting Is Set for April 4

B O L I V I A

* BOLIVIA: Brazilian Companies Plan Investments in Nation

B R A Z I L

ACTUANT CORP: Inks Third Amendment to JP Morgan Credit Agreement
AGCO CORP: Posts US$128.1 Million Net Loss in Qtr. Ended Dec. 31
ALCATEL-LUCENT: Inks IP/MPLS Network Deal with Armenian Datacom
ALCATEL-LUCENT: Alliances Director Named to WiMAX Forum Board
BANCO ITAU: Fourth Quarter 2006 Results Worse Than 2005

ITRON INC: S&P Places BB- Rating on Watch Neg. Over Actaris Deal
PETROLEO BRASILEIRO: To Study Petrosix Technology at Attarat
UNIAO DE BANCOS: Analysts Say Firm Do Well in Fourth Quarter
USINAS SIDERURGICAS: To Have Good Results for 2006, Says Socopa
WARNER MUSIC: S&P Puts Ratings on Watch After EMI Merger Talks

C A Y M A N   I S L A N D S

ASSET BACKED: Final Shareholders Meeting Is on April 19
NEOCHIP LEASING: Final Shareholders Meeting Is on April 19
PYXIS FUNDING: Final Shareholders Meeting Is on April 19

C H I L E

FREEPORT-MCMORAN: Moody's Confirms Ba3 Corporate Credit Rating

C O L O M B I A

ARMSTRONG WORLD: Inks US$20MM Settlement with Armstrong Holdings
BBVA COLOMBIA: To Approve COP123-Billion Dividend on March 30

C O S T A   R I C A

COVANTA HOLDING: Earns US$12 Mil. in Quarter Ended Dec. 31, 2006
US AIRWAYS: IAM Says Carrier Is Using Bankruptcy as Shield

* COSTA RICA: Officials to Evaluate Atlantic Megaport Proposal
* COSTA RICA: Oscar Arias Will Try to Stop Transfer of Alunasa

E C U A D O R

PETROECUADOR: Awards Napo Crude to Shell's Trading Firm
PETROECUADOR: Receives 220,000 Barrels of Diesel from Venezuela

E L   S A L V A D O R

AES CORP: To Reschedule Release of 2006 Financial Results

G U A T E M A L A

BRITISH AIRWAYS: Hires Porter Novelli for Public Relations Work

* GUATEMALA: Banguat Inks Recapitalization Pact with Banks

J A M A I C A

KAISER ALUMINUM: Will Hold Shareholders' Meeting on June 6

M E X I C O

ADVANCED MARKETING: Inks Asset Purchase Pact with Baker & Taylor
ADVANCED MARKETING: Court Grants Final Access to DIP Financing
AXTEL SAB: Reports MXN1.1 Bil. in 2006 Fourth Quarter Revenues
AMERICAN AXLE: Offers US$300 Million of Senior Unsec. Notes
AMERICAN AXLE: Fitch Places BB Rating on New Sr. Notes Due 2017

AMERICAN AXLE: Moody's Assigns Ba3 Rating on US$300-Mln Notes
CORPORACION GEO: Posts Financial Results for Fourth Quarter 2006
CLEAR CHANNEL: Fourth Quarter 2006 Revenues Up to US$1.94 Bil.
GRUPO IUSACELL: Reports MXN3.89 Billion Net Profits in 2006
TANK SPORTS: Operates as Usual; Expects to File Financials Soon

VITRO SAB: Reports 7.7% Year-Over-Year Increased in Sales

P A N A M A

CHIQUITA BRANDS: Sets Shareholders Annual Meeting for May 24

P A R A G U A Y

* PARAGUAY: Monica Perez Resigns as Central Bank Head

P E R U

BIO-RAD LABORATORIES: Earns US$16.6 Million in 2006 Fourth Qtr.

* PERU: Expects 15 Million Total Exports of Mango in March
* PERU: Petroperu Inks Accord with Andean Development Corp.

P U E R T O   R I C O

ALLIED WASTE: Commences US$750 Mil. 8.5% Senior Notes Offering
ALLIED WASTE: Fitch Assigns B+/RR3 Rating on US$750MM New Notes
ALLIED WASTE: Moody's Places B1 Rating on Upcoming US$750M Notes
ALLIED WASTE: S&P Assigns BB-/RR4 Rating on US$750MM Sr. Notes
MUSICLAND HOLDING: Confirmation Hearing Adjourned to March 29

R&G FINANCIAL: Shares Delisted from New York Stock Exchange

T R I N I D A D   &   T O B A G O

MIRANT CORP: NY Units Want Confirmation Trial Moved to March 21

U R U G U A Y

BANCO DE GALICIA: Uruguayan Central Bank Lifts Unit's Suspension

V E N E Z U E L A

ARVINMERITOR: Moody's Affirms Ba3 Corporate Family Rating
DAIMLERCHRYSLER: Chrysler's Bidding Process May Start This Week
DAIMLERCHRYSLER AG: Hyundai Denies Interest in Chrysler Purchase
DAIMLERCHRYSLER: Magna Makes Chrysler's New Seating Features
PETROLEOS DE VENEZUELA: Inks Oil-for-Advice Pact with London

PETROLEOS DE VENEZUELA: Sends Diesel to Petroecuador
PETROLEOS DE VENEZUELA: To Issue US$3.5B Bonds in First Quarter

* VENEZUELA: Int'l Court To Consider Eni's US$1 Billion Claim
* VENEZUELA: Pricing New South Bonds 112.6% Per Cent Higher
* VENEZUELA: Reaches Demarcation Pact with Trinidad on Deltana
* VENEZUELA: Will Relocate Alunasa to Nicaragua

* BOND PRICING: For the Week February 19 to February 23, 2007


                         - - - - -


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


BHN IV: S&P Puts raD Rating on US$24.38-Mil. Series B Security
--------------------------------------------------------------
Standard & Poor's International Ratings, LLC, assigned a raD
rating on BHN IV's Series B debt security for US$24,375,000.


GREIF INC: Board Approves 2-for-1 Stock Split Payable April 11
--------------------------------------------------------------
Greif Inc.'s board of directors authorized a 2-for-1 stock split
of the company's Class A common stock and Class B common stock.  
The split will be payable on April 11, 2007, to shareholders of
record on March 19, 2007.

The board's action follows approval by the shareholders of
Greif's Class A and Class B common stock to authorize an
additional 96 million shares of Class A and 51.84 million shares
of Class B common stock.  The approval was announced at the
company's annual meeting on Feb. 26, 2007.

The stock split means that holders of Class A common stock as of
the close of business on March 19, 2007, will receive on
April 11, 2007, one additional share of Class A common stock for
every share they hold of Class A common stock.  Each holder of
Class B common stock as of the close of business on
March 19, 2007, will receive on April 11, 2007, one additional
share of Class B common stock for every share they hold of Class
B common stock.  The day on which Greif shares will begin
trading on the NYSE reflecting the stock split will be
April 12, 2007.

"In the last four years, since we began our transformation to
the Greif Business System, Greif's stock has returned 519
percent in dividend yield and capital appreciation," said
Michael J. Gasser, chairman, chief executive officer and
president.  "Our focus, discipline and passion continue to
escalate as we find more ways to add value to our company
through the Greif Business System.  I am truly excited about our
future."

The board also declared quarterly cash dividends of US$0.36 per
share of Class A Common Stock and US$0.54 per share of Class B
Common Stock.  The dividends are payable on April 1, 2007
(before the stock split), to shareholders of record at close of
business on March 15, 2007.

Headquartered in Delaware, Ohio, Greif, Incorporated, (NYSE:
GEF, GEF.B) -- http://www.greif.com/--is a world leader in  
industrial packaging products and services. The Company provides
extensive expertise in steel, plastic, fibre, corrugated and
multi-wall containers for a wide range of industries. Greif also
produces containerboard and manages timber properties in the
United States.  For fiscal year 2006, the company generated
approximately US$2.6 billion in net sales and US$326 million in
EBITDA.  The company has operations in Australia, Argentina,
Brazil, Belgium, China, Malaysia, among others.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Jan. 26, 2007, Standard & Poor's Ratings Services assigned its
'BB-' ratings to Greif Inc.'s proposed US$300 million senior
unsecured notes due 2017.  The proceeds from the notes will be
used to retire approximately US$248 million in existing senior
subordinated notes due 2012 and for general corporate purposes.  
The new senior notes issue is contingent upon consummation of
the tender offer for the senior subordinated notes.

In addition, Standard & Poor's affirmed its 'BB+' corporate
credit rating on the Delaware, Ohio-based company. The outlook
is stable.


PETROLEOS DE VENEZUELA: Purchase Talks for Rhasa Underway
---------------------------------------------------------
Venezuelan State oil firm Petroleos de Venezuela SA and its
Argentine counterpart, Enarsa, will purchase oil company Rhasa
despite its pending tax obligations, local reports in Argentina
said.

Rhasa's outstanding tax liabilities for US$32 million with the
Argentinean Federal Administration of Public Revenues halted the
purchase in September 2005, Efe news agency recalled.

The tax hurdle has been resolved, paving the way for the
reopening of sales talks.  El Cronista says Enarsa will assume
that tax liability once it becomes the company's stockholder.

The two state-oil firms propose to buy Rhasa for US$31 million,
El Universal says.  The company is owned by the Sambucetti
family and comprises one refinery and 150 gas stations in
Argentina.  It owns a refinery in Campana, which has a capacity
of about 8,000 barrels per day.

The purchase of Rhasa is in line with the two state firms joint
operations of gas stations in the Latin American region.

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

                        *    *    *

As reported on Nov. 22, 2006, Fitch affirmed the local and
foreign currency Issuer Default Ratings of Petroleos de
Venezuela S.A. at 'BB-'.  Fitch has also affirmed the 'AAA(ven)'
national scale rating of the company.  Fitch said the rating
outlook is stable.


SANCOR: Getting US$20 Mil. from Venezuela to Meet March Payments
----------------------------------------------------------------
The Venezuelan government will release US$20 million so that the
dairy cooperative from Santa Fe may afford a debt payment next
month.  That fund is part of a loan for US$135 million that the
government of Hugo Chavez will grant SanCor.

"The objective is that next Wednesday the agreement is signed
and the payments are conducted, for a total of US$135 million,
that will arrive in different periods.  Once the agreement is
executed, the money will be paid so that SanCor can immediately
afford its "next maturity date."

Venezuela will purchase SanCor's 15,000 annual tons of powdered
milk in lieu of cash.  

SanCor, which has over US$190 million in liabilities, will
receive US$80 million to deal with these commitments and another
US$55 million to be used as working capital, in the aim of
reactivating closed plants.

Headquartered in Santa Fe, Argentina, SanCor is a diary milk
cooperative and one of the largest milk processors and marketers
in Argentina.  Annual revenues for the fiscal year ended June
2006, are ARUS$1.4 billion.

                        *     *     *

As reported on Jan. 15, 2007, Standard & Poor's rated SanCor
Coop. Unidas Ltda.'s debts at D:

   -- Obligaciones Negociables Serie 2, issued under the US$300
      million program, for US$19,000,000,

   -- Obligaciones Negociables Serie 3, included under the
      US$300 million program, for US$75,800,000.


* ARGENTINA: State Oil Firm Partners with PDVSA for Rhasa Buy
-------------------------------------------------------------
Venezuelan State oil firm Petroleos de Venezuela SA and its
Argentine counterpart, Enarsa, will purchase oil company Rhasa
despite its pending tax obligations, local reports in Argentina
said.

Rhasa's outstanding tax liabilities for US$32 million with the
Argentinean Federal Administration of Public Revenues halted the
purchase in September 2005, Efe news agency recalled.

The tax hurdle has been resolved, paving the way for the
reopening of sales talks.  El Cronista says Enarsa will assume
that tax liability once it became the company's stockholder.

The two state-oil firms propose to buy Rhasa for US$31 million,
El Universal says.  The company is owned by the Sambucetti
family and comprises one refinery and 150 gas stations in
Argentina.  It owns a refinery in Campana, which has a capacity
of about 8,000 barrels per day.

Rhasa's purchase is in line with the two state firms joint
operations of gas stations in the Latin American region.

                        *    *    *

Fitch Ratings assigned these ratings on Argentina:

                     Rating     Rating Date
                     ------     -----------
   Country Ceiling     B+      Aug. 1, 2006
   Local Currency
   Long Term Issuer    B       Aug. 1, 2006
   Short Term IDR      B       Dec. 14, 2005
   Long Term IDR       RD      Dec. 14, 2005




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


HILTON HOTELS: Reduced Leverage Cues Moody's to Up Rating to Ba1
----------------------------------------------------------------
Moody's Investors Service upgraded Hilton Hotels Corporation's
corporate family rating to Ba1 from Ba2 reflecting a reduction
in leverage from a faster than expected pace of asset sales and
strong earnings during 2006.  Adjusted debt to EBITDAR (on a
Moody's FM adjusted basis) has improved to around 5.0x from 6.0x
in January 2006.  Moody's capitalizes total rent (including
percentage rent) at 8x and adds a debt equivalent of
approximately 20% of Hilton's guaranty exposure to debt.  The
rating outlook is stable reflecting the solid outlook for demand
and limited supply additions.  Hilton's rating outlook could
move to positive if the company continues to execute its asset
sale program at reasonable multiples and uses the proceeds to
repay debt resulting in adjusted debt to EBITDAR (on a Moody's
FM adjusted basis) around 3.75x.  The ratings could be
considered for upgrade, if leverage is likely to remain at lower
levels in the context of the industry operating environment,
management's financial policy and willingness to manage the
company's growth initiatives in the context of an investment
grade rating.  Absent event risk, Moody's does not anticipate
downward rating pressure given the strong earnings outlook, the
success of the asset disposition program to date and the strong
appetite for lodging assets by third parties.  Pursuant to
Moody's Lodging Rating Methodology, Hilton maps to an overall
rating in the Baa category reflecting a strong Baa rating with
respect to diversification, and profitability, and mid-Ba rating
with respect to leverage and coverage.  The difference between
its assigned and methodology implied rating is expected during
peak industry cycles that currently exists, and Hilton's
reliance on asset sales to improve credit metrics more in line
with the Baa rating category.  Moody's notes that once Hilton's
reduces its total leverage ratio (as defined in the credit
agreement) at or below 4.5x for two consecutive quarter,
Hilton's bank and public debt will no longer be guaranteed or
secured by stock pledges.  The release of this collateral is
expected to occur during 2007.

Ratings upgraded:

   -- Corporate family rating to Ba1 from Ba2

   -- Senior secured bank facility to Ba1, LGD4 from Ba2, LGD4

   -- Senior bonds, debenture and convertible notes to Ba1, LGD4
      from Ba2, LGD4

   -- Multiple seniority shelf to (P)Ba1, LGD4, from (P)Ba2,
      LGD4, and to (P)Ba2, LGD6 from (P)B1, LGD6

Rating confirmed:

   -- Commercial paper at Not Prime.

Headquartered in Beverly Hills, California, Hilton Hotels Corp.
-- http://www.hilton.com/-- together with its subsidiaries,
engages in the ownership, management, and development of hotels,
resorts, and timeshare properties, as well as in the franchising
of lodging properties in the United States and internationally,
including Barbados, Costa Rica and Trinidad and Tobago in Latin
America.  Hilton Hotels also operates in the United Kingdom,
Germany, Belgium, Estonia, Lithuania, Norway, Denmark, Finland,
Italy, The Netherlands, Sweden, Indonesia, Australia, Austria,
India, Philippines, Vietnam.




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


KEPLER HOLDINGS: Moody's Assigns (P)Ba2 Rating on US$200MM Loan
---------------------------------------------------------------
Moody's Investors Service has assigned a provisional (P)Ba2
rating to the US$200 million senior secured term loan facility
of Bermuda-domiciled Kepler Holdings Limited.  The outlook for
the provisional rating is stable.  The rating agency expects to
remove the provisional status and assign a definitive rating at
the same level upon review of final executed documentation,
provided the documentation is consistent with the terms and
conditions specified to date that underlie this provisional
rating.

The privately-placed senior secured term loan facility, which is
being syndicated to financial institutions and other
institutional lenders, is sponsored by Hannover Ruckversicherung
AG and its affiliates, E+S Ruckversicherung AG and Hannover Re
(Bermuda) Limited, for natural catastrophe risks.  Investors
will provide aggregate catastrophe excess of loss reinsurance
protection -- on an indemnity basis -- to Hannover Re for the
portion of losses in excess of a stipulated attachment point up
to a stipulated exhaustion point.  The annual attachment and
exhaustion probabilities will be 120bps and 40bps, respectively.  
The gross dollar values corresponding to these points will be
based on the average of the Kepler portfolio annual aggregate
exceedance curves as of January 1 and July 1 of each year.  The
gross dollar values will be determined once in 2007 and will be
reset in 2008 to keep the attachment and exhaustion
probabilities constant.  Incurred losses (other than paid) and
incurred but not reported losses will be included only in the
final commutation calculation which will occur no later than
June 30, 2009.

The rating for the term loan is supported by a probabilistic
analysis -- using a custom financial model -- to determine both
the probability of loss P(D) and expected loss E(L) to Kepler
Holdings' lenders over the two risk periods.  This approach
involves these steps:

   (i) assessing the promise of interest and principal to
       investors;

   (ii) examining potential loss scenarios and their associated
        probabilities;

   (iii) calculating P(D) and E(L) relative to the promised  
         interest and principal; and

   (iv) comparing P(D) and E(L) to those of a set of benchmark
        securities with the same average duration
       (roughly 2.3 years), in order to arrive at a rating.

Moody's has made certain probabilistic assumptions in its
financial model with regard to:

   1) the risk of overstated reserves at the time of
      commutation,

   2) the uncertainty underlying the annual exceedance curve,

   3) Hannover's ability to pay quarterly reinsurance premiums
      (e.g., interest payments) and to make the collateral trust
      whole for any investment losses, and

   4) the investment performance of the collateral assets.

The rating also reflects qualitative considerations such as
Hannover's option to buy reinsurance on its retained share
(perhaps reducing its "skin in the game"), the risk that
reinsurers, including Hannover Re, may relax contract terms and
conditions as the market becomes more competitive, and the fact
that segregated cell technology has never been tested in
bankruptcy (albeit trust law is well established).

Moody's analysis is sensitive to assumptions about the overall
annual aggregate exceedance probability or AEP curve.  As such,
Moody's has increased AEP modeled losses by various percentages.  
While the Kepler portfolio is designed to be highly modelable
using industry vendor models (i.e., it excludes business lines
such as marine, aviation, retrocession contracts, and Eastern
Europe exposures), Hannover mainly uses aggregate-level models,
instead of detailed-level models, which means that it relies
largely on industry average assumptions -- instead of property
specific information -- to assemble its AEP curves.  Vendor
models also do not capture certain contract elements such as
loss adjustment expenses and extra-contractual obligations,
which are covered under this excess of loss agreement.  Further,
the Kepler portfolio has significant exposure to regions outside
the U.S., particularly to European windstorms, where data
quality tends to be less detailed.  That said, Hannover does
perform a number of data quality checks before starting the
vendor models, especially for US business where about 30% of the
underlying treaties are modeled using detailed-level models.  
The company uses a data quality tool to analyze detailed loss
data supplied by clients and, in general, prefers not to rely
solely on client data.

Moody's also acknowledges some of the conservatism that Hannover
embeds into its practices such as aggregating exposures on a
peril/territory level first before deriving the overall AEP
curve.  This introduces conservatism into the process by not
allowing for the potential erosion of aggregate limits and/or
limited reinstatements across different peril/territory classes.  
Further, Hannover assumes full correlation (instead of a
correlation benefit) between exposures modeled using different
approaches or vendor models.  Moody's also views favorably that
an assessment of Hannover's aggregation management and
catastrophe modeling practices was done by an independent third
party.

The rating will be monitored quarterly to reflect the build-up
of losses that have occurred up to that time.  If a meaningful
catastrophe event occurs, Moody's will reconstitute the overall
AEP curve using the curves for individual perils and territories
that are relevant for the remainder of the year.  The financial
model will be updated to reflect this new curve along with an
estimated build-up of losses and any anticipated changes to
Hannover's credit profile.  The probability of default and
expected loss to lenders will be updated, and Moody's will take
rating actions, if any, accordingly.

The Kepler portfolio represents roughly 80% (by limits) of
Hannover Re's entire property catastrophe reinsurance book.  
European windstorm and U.S. hurricane perils are the biggest
contributors to modeled losses, particularly in the tails.  
Roughly three-quarters of the underlying business is transacted
at January 1, such that Moody's expects only modest deviation
from the projected portfolio for 2007.

This provisional rating has been assigned with a stable outlook:

Kepler Holdings Limited -- US$200 million senior secured term
loan facility due June 2009 at (P)Ba2.

Kepler Holdings Limited is a newly formed Bermuda exempted
company, wholly owned by a charitable purpose trust.  Kepler
Holdings will enter into the US$200 million senior secured
credit facility, the proceeds of which will be deposited into a
segregated account, Kepler Re.  Kepler Re is a newly formed
segregated account of Kaith Re Ltd., an existing licensed Class
3 Bermuda reinsurer and Bermuda segregated-accounts company.  
Kaith Re, on behalf of Kepler Re, will enter into an aggregate
indemnity catastrophe excess of loss reinsurance agreement with
Hannover Re.


NEW PEMBROKE: Final General Meeting Is Set for April 4
------------------------------------------------------
New Pembroke Insurance's final general meeting will be at 10:00
a.m. on April 4, 2007, or as soon as possible, at the offices of
Mello Jones & Martin.

New Pembroke's sole member will determine during the meeting,
through a resolution, the manner in which the books, accounts
and documents of the company will be disposed.  

The liquidator can be reached at:

             Joel Czember
             Thistle House
             4 Burnaby Street             
             Hamilton, Bermuda




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


* BOLIVIA: Brazilian Companies Plan Investments in Nation
---------------------------------------------------------
Brazilian companies Braskem SA and Petroleo Brasileiro SA are
reportedly negotiating with Bolivian authorities for new
investments in the Andean nation.

                       Biodiesel Plant

With a gas price agreement in place, state-owned oil firm
Petroleo Brasileiro is in talks to open a biodiesel plant in
Bolivia, the Associated Press reports.

The state oil firm's investments in the country were put on hold
pending a resolution to a price dispute.  Bolivian authorities
did not provide AP details of the upcoming project, which is
still in its early planning stage.

                     Petrochemical Plant

Braskem plans to build a US$1.4 billion plant in Bolivia, a
project that has the Brazilian government's support.

"There is a concrete proposal from the company Braskem.  The
largest petrochemical company in Brazil has presented a project
... it's an investment worth US$1.4 billion, and it has the
backing of Petrobras and the Brazilian government," Bolivian
hydrocarbons minister Carlos Villegas was quoted by Reuters as
saying to local radio Illimani.  He added that the proposal has
been the most important project the government has received so
far.

Reuters says Petroleo Brasileiro is mulling a partnership with
Braskem in the petrochemical project.
The plant would use natural gas to make polyethylene.

                      Gas Price Accord

Brazil agreed to pay a higher price for the natural gas it buys
from Bolivia, as well as the derivatives extracted from the
fuel.  Their old agreement allowed Brazil to pay for the gas and
its derivative at a fixed price.

On Feb. 15, the two nations inked a deal that puts an 11% price
hike on natural gas that Brazil buys from Bolivia.

According to the Wall Street Journal, Bolivia will get an
additional US$144 million per year from Brazil.  Brazil bought
Bolivian fuel for approximately US$1.3 billion in 2006.

                        About Braskem

Braskem (BOVESPA: BRKM5; NYSE: BAK; LATIBEX: XBRK) --
http://www.braskem.com.br/-- is a thermoplastic resins producer  
in Latin American, and is among the three largest Brazilian-
owned private industrial companies.  The company operates 13
manufacturing plants located throughout Brazil, and has an
annual production capacity of 5.8 million tons of resins and
other petrochemical products.

                  About Petroleo Brasileiro

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

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

                        *    *    *

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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ACTUANT CORP: Inks Third Amendment to JP Morgan Credit Agreement
----------------------------------------------------------------
Actuant Corporation entered into a Third Amendment to the
Amended and Restated Credit Agreement, dated as of
Feb. 16, 2007, with JP Morgan Chase Bank National Association as
the administrative agent.

The agreement amends and modifies the company's amended and
restated credit agreement, dated as of Dec. 27, 2004.

The company said that the third amendment increased the existing
term loan facility from US$250 million to US$400 million, which
is in addition to the existing US$250 million revolving credit
facility, eliminates amortization of the term loan such that the
entire amount of the term loan matures on Dec. 22, 2009.

Additionally, the third amendment permits the company future
incremental term loans and increases in aggregate revolving loan
commitments of up to an additional aggregate principal amount of
US$200 million.  It also increases certain limits concerning the
incurrence of other indebtedness.

The company used the proceeds from the US$150 million increase
in the term loans to pay down amounts outstanding under the
revolving credit facility and reduce commercial paper
borrowings.

                  About Actuant Corporation

Actuant Corp. (NYSE:ATU) -- http://www.actuant.com/--   
is a diversified industrial company with operations in more than
30 countries, including Brazil in Latin America.  The Actuant
businesses are market leaders in highly engineered position and
motion control systems and branded hydraulic and electrical
tools and supplies.  Since its creation through a spin-off in
2000, Actuant has grown its sales from US$482 million to over
US$1 billion and its market capitalization from US$113 million
to over US$1.4 billion.  The company employs a workforce of more
than 6,300 worldwide.  

                        *     *     *

As reported in the Troubled Company Reporter on Oct. 23, 2006,
Moody's Investors Service affirmed its Ba2 corporate family
rating for Actuant Corp.


AGCO CORP: Posts US$128.1 Million Net Loss in Qtr. Ended Dec. 31
----------------------------------------------------------------
Agco Corp. reported results for its fourth quarter and year
ended Dec. 31, 2006.

The company reported a net loss of US$128.1 million for the
fourth quarter of 2006.  The fourth quarter 2006 results
reflected a non-cash goodwill impairment charge of US$171.4
million associated with the company's Sprayer business.  
Adjusted net income, which excluded restructuring and other
infrequent expenses and the non-cash goodwill impairment charge,
was US$38.8 million for the fourth quarter of 2006.  AGCO
reported a net loss of US$63.8 million and adjusted net income
of US$26.9 million for the fourth quarter of 2005.  Net sales
for the fourth quarter of 2006 were US$1.6 billion, an increase
of 18% compared to US$1.4 billion of the same period in 2005.

The company reported a net loss of US$64.9 million for the full
year.  Adjusted net income, which excludes restructuring and
other infrequent expenses and the non-cash goodwill impairment
charge, was US$102.7 million for the full year of 2006.  Net
income for the full year of 2005 was US$31.6 million.  Adjusted
net income, which excludes restructuring and other infrequent
income, costs associated with a June 2005 bond redemption, and a
non-cash deferred income tax adjustment, was US$31.6 million for
the full year of 2005.  Net sales for the full year of 2006 were
US$5.4 billion, which were slightly below the prior year.

Excluding the impact of currency translation, Agco's net sales
increased 11.1% during the fourth quarter and decreased 2.4% for
the full year of 2006 compared to the same periods in 2005.

In the fourth quarter of 2006, net sales increased in the South
America and Europe/Africa/Middle East regions, partially offset
by sales declines in the North America and Asia/Pacific regions.  
For the full year of 2006, net sales declined in the North
America, South America and Asia/Pacific regions, partially
offset by sales increases in the Europe/Africa/Middle East
region.  The European sales growth was led by strong results in
Germany and Eastern Europe where market conditions improved in
2006.  Net sales in North America in 2006 were significantly
lower compared to 2005 primarily due to weaker market conditions
and lower deliveries to dealers, resulting in a reduction in
dealer inventory levels.  In the South America and Asia/Pacific
regions, weaker market conditions contributed to the sales
decline.

Adjusted income from operations increased US$28.1 million for
the fourth quarter of 2006 compared to the same period in 2005
primarily due to increased sales achieved in the quarter.  For
the full year of 2006, adjusted income from operations decreased
US$33.4 million compared to 2005 resulting from sales declines
and lower production levels.  Unit production of tractors and
combines for the full year of 2006 was 9% below 2005.

"AGCO delivered record free cash flow in 2006," Martin
Richenhagen, Chairman, President and Chief Executive Officer,
stated.  "The company's working capital focus throughout the
year resulted in free cash flow of over US$300 million and
enabled it to further strengthen its balance sheet.  During
2006, AGCO reduced its net debt to capital ratio from 30% to 20%
and lowered its net debt by US$244 million.  Working capital
management will continue to be a major focus in 2007."

As disclosed in AGCO's third quarter 2006 Form 10-Q, the company
performed its annual impairment testing of goodwill and other
intangible assets in accordance with SFAS No. 142 during the
fourth quarter.  As a result of this analysis, the company
determined that the total carrying amount of goodwill associated
with its Sprayer business should be written off, and, therefore,
the company recorded a non-cash goodwill impairment charge of
US$171.4 million during the fourth quarter.  The company
remained committed to its Sprayer business and has strategies in
place to strengthen the Sprayer distribution network, enhance
the product line and improve future operating results.

At Dec. 31, 2006, AGCO Corp.'s balance sheet showed US$4.114
billion in total assets and US$2.620 billion in total
liabilities with US$1.5 billion in total stockholders' equity.  

                      About Agco Corp.

Headquartered in Duluth, Georgia, Agco Corp. --
http://www.agcocorp.com/-- is a global manufacturer of  
agricultural equipment and related replacement parts.  Agco
offers a full product line including tractors, combines, hay
tools, sprayers, forage, tillage equipment and implements, which
are distributed through more than 3,600 independent dealers and
distributors in more than 140 countries worldwide, including
Argentina and Brazil.  AGCO products include the following
brands: AGCO(R), Challenger(R), Fendt(R), Gleaner(R),
Hesston(R), Massey Ferguson(R), New Idea(R), RoGator(R), Spra-
Coupe(R), Sunflower(R), Terra-Gator(R), Valtra(R), and White(TM)
Planters.  AGCO provides retail financing through AGCO Finance.  
The company had net sales of US$5.4 billion in 2005.

                        *    *    *

AGCO Corp.'s 1-1/4% Convertible Senior Subordinated Notes due
2036 carry Standard & Poor's BB- rating.


ALCATEL-LUCENT: Inks IP/MPLS Network Deal with Armenian Datacom
---------------------------------------------------------------
Alcatel-Lucent disclosed that Armenian Datacom Company, a
competitive data provider in Armenia, selected Alcatel-Lucent to
supply an IP/MPLS network to deliver high quality data and
Internet services to business and residential customers.

Covering most of the Armenian capital city of Yerevan, Alcatel-
Lucent's IP/MPLS network will allow Armenian Datacom to benefit
from a wider variety of service offerings and increased service
flexibility.  Once deployed, the operator can provide advanced
services such as high speed Internet (HSI) and virtual private
LAN services (VPLS) for corporate customers.  By running all
services on a single, next generation IP infrastructure,
Armenian Datacom can achieve significant economies of scale and
maximize profitability of services while streamlined and
simplified network management tools will result in significant
operational savings.

"By leveraging Alcatel-Lucent's IP portfolio of products,
Armenian Datacom Company can offer advanced business and
residential services for the first time in Armenia," said
Armenian Datacom CEO Harald Grytten.  "Implementing Alcatel-
Lucent's leading-edge solutions gives us the business and
technology tools we need to compete and to offer subscribers a
variety of converged services."

"As an early supplier of cutting edge IP/MPLS solutions in
Armenia, we are in a position to contribute to further
development and modernization of the data infrastructure in
Armenia," said Basil Alwan, President of Alcatel-Lucent's IP
activities.  "Armenian Datacom is able to leverage the unique
features of our IP/MPLS solution to provide a new generation of
services to its customers."

Armenian Datacom Company joins a list of more than 160 service
providers in over 60 countries who have selected the Alcatel-
Lucent IP portfolio, including massive, multi-year IP network
and service transformation projects at AT&T, BT, Cable &
Wireless, and Telstra. According to Ovum-RHK, Alcatel-Lucent was
no. 2 in the IP/MPLS Edge market segment in Q4 2006, with 19%
market share.

                            About ADC

Armenian Datacom Company CJSC (ADC) is an Armenian-Norwegian
joint venture formed in 2006.  The company is set up to provide
telecommunications services in and around the city of Yerevan
with focus on the latest available services for commercial data
communication and Internet access for an unlimited amount of
users.

                    About Alcatel-Lucent

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

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

                          *     *     *

As of Feb. 7, Alcatel-Lucent's Long-Term Corporate Credit rating
and Senior Unsecured Debt carry Standard & Poor's BB- rating.
It's Short-Term Corporate Credit rating stands at B.

Moody's, on the other hand, put a Ba2 rating on Alcatel's
Corporate Family and Senior Debt rating.  Lucent carries Moody's
B1 Senior Debt rating and B2 Subordinated debt & trust preferred
rating.

Fitch rates Alcatel's Issuer Default Rating and Senior Unsecured
Debt rating at BB.


ALCATEL-LUCENT: Alliances Director Named to WiMAX Forum Board
-------------------------------------------------------------
Philippe Goossens, Strategic Alliances Director for Alcatel-
Lucent's WiMAX activities, has been named as member of the Borad
of Directors of the WiMAX Forum, an industry-led non-profit
organization comprising more than 430 companies committed to
promoting and certifying interoperable WiMAX products.

As a strong contributor to the WiMAX Forum, Alcatel-Lucent's
presence on its board of directors is indicative of the
acknowledgement by wireless market leaders around the globe that
WiMAX is a powerful option for delivering broadband Internet
services anytime and anywhere.

Being elected to WiMAX Forum Board of Directors recognizes
Alcatel-Lucent's commitment and contribution to the fast-growing
WiMAX market and a testimony to its technical leadership in
WiMAX technologies.

"Alcatel-Lucent is a global leader in telecommunications, and
having the company join our Board is evidence of its dedication
to taking the WiMAX ecosystem forward," said Ron Resnick,
president and chairman of the WiMAX Forum.  "Having one of the
industry's most comprehensive wireless portfolios, we look
forward to Alcatel-Lucent's further involvement to help
accelerate the WiMAX deployment worldwide.  As a leading
proponent of WiMAX, Alcatel-Lucent has proven its ability to
deliver standards-based products that are commercially installed
by its numerous operator customers."

Alcatel-Lucent's strong support of open standards and device
interoperability -- as demonstrated by several interoperability
testing (IOT) centers operational in France, the United States
and Taiwan -- benefits operators seeking to diversify and offer
the optimum choice of terminals to their subscribers.

"The announcement is a major step forward and further highlights
our commitment to promote the IEEE 802.16e-2005 open standard to
advance the adoption of WiMAX worldwide," said Philippe
Goossens, Strategic Alliances Director for Alcatel-Lucent's
WiMAX activities.  "As part of the WiMAX Forum, Alcatel-Lucent
is working to ensure interoperability of wireless broadband
solutions and enable telecom operators to deliver innovative and
differentiating services to their customers."

                      About the WiMAX Forum

The WiMAX Forum is an industry-led, non-profit corporation
formed to help promote and certify the compatibility and
interoperability of broadband wireless products using the IEEE
802.16 and ETSI HiperMAN wireless MAN specifications.  The
forum's goal is to accelerate the introduction of these devices
into the marketplace.  WiMAX Forum Certified products will be
fully interoperable and support Metropolitan Broadband Fixed,
Portable and Mobile Applications.

                    About Alcatel-Lucent

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

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

                        *     *     *

As of Feb. 7, Alcatel-Lucent's Long-Term Corporate Credit rating
and Senior Unsecured Debt carry Standard & Poor's BB- rating.
It's Short-Term Corporate Credit rating stands at B.

Moody's, on the other hand, put a Ba2 rating on Alcatel's
Corporate Family and Senior Debt rating.  Lucent carries Moody's
B1 Senior Debt rating and B2 Subordinated debt & trust preferred
rating.


BANCO ITAU: Fourth Quarter 2006 Results Worse Than 2005
-------------------------------------------------------
Unibanco Corretora analyst Carlos Macedo told Business News
Americas that the fourth quarter 2006 results for Banco Itau
Holding Financiera and Banco Bradesco were worse than 2005, but
in line with expectations.

Banco Itau's results looked good at first.  Further analysis
revealed the bulk came from treasury operations, BNamericas
says, citing Mr. Macedo.

BNamericas underscores that Banco Itau's recurring net income in
the fourth quarter 2006 increased 14.2% to BRL1.63 billion, from
the fourth quarter 2005.

"The NPL [non-performing loan] ratio improved a lot, but I
wonder if it's going to improve in 2007," Mr. Macedo told
BNamericas.

Meanwhile, the Troubled Company Reporter-Latin America reported
on Feb. 14, 2007, that the 2006 fourth quarter recurring net
income of Banco Bradesco was BRL1.620 billion, +0.6% compared to
the 2006 third quarter.  In the year of 2006, the annualized
return on average stockholders' equity (ROAE) stood at 30%
(32.1% in 2005), and at 32.3% in the quarter annualized (32.7%
in 2006 third quarter).  Total Assets reached BRL265.5 billion,
+27.2% when compared to December 2005 and +9.2% when compared to
September 2006, BRL96.2 billion or 36.2% of which represented by
Loans and Leasing.

Mr. Macedo told BNamericas, "What propped up Bradesco were the
insurance businesses, accounting for 43% of net income in fourth
quarter 2006.  Insurance keeps growing because the banking
business no longer achieves results.  The loan portfolio
expanded, but not among profitable loans."

Banco Bradesco started developing its credit card business in
2005 after it bought Amex operations in Brazil for US$490
million, while the bank's private label accords with retailers
like Casas Bahia did not help boost lending in the fourth
quarter of 2006, BNamericas says, citing Mr. Macedo.

Mr. Macedo told BNamericas that Banco will likely deliver strong
results in 2007, with return on equity above 29%.

"But it has to deliver better results from its banking business.  
The insurance sector is going through a positive period, but
there is no telling on how abruptly that may end," Mr. Macedo
commented to BNamericas.

                     About Banco Bradesco

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

                       About Banco Itau

Banco Itau Holding Financeira SA -- http://www.itau.com.br/--
is a private bank in Brazil.  The company has four principal
operations: banking -- including retail banking through its
wholly owned subsidiary, Banco Itau SA (Itau), corporate banking
through its wholly owned subsidiary, Banco Itau BBA SA (Itau
BBA) and consumer credit to non-account hold customers through
Itaucred -- credit cards, asset management and insurance,
private retirement plans and capitalization plans, a type of
savings plan.  Itau Holding provides a variety of credit and
non-credit products and services directed towards individuals,
small and middle market companies and large corporations.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 12, 2007, Fitch changed the outlook of these ratings of
Banco Itau Holding Financiera SA:

   -- foreign currency IDR at 'BB+'; outlook to positive from
      stable;

   -- local currency IDR at 'BBB-'; outlook to positive
      from stable; and

   -- national Long-term rating at 'AA+(bra)'; outlook to
      positive from stable.


ITRON INC: S&P Places BB- Rating on Watch Neg. Over Actaris Deal
----------------------------------------------------------------
Standard & Poor's Ratings Services placed its ratings, including
its 'BB-' corporate credit rating, on Itron Inc. on CreditWatch
with negative implications.  The CreditWatch placement follows
the company's announcement that it has signed an agreement to
acquire Luxembourg-based Actaris Metering Systems, a European
manufacturer of electric, gas, and water meters, for more than
US$1.6 billion.  Itron had total debt of approximately US$469
million as of Dec. 31, 2006.
      
"The CreditWatch placement reflects the increased financial risk
associated with this type of transformational acquisition," said
Standard & Poor's credit analyst James Siahaan.  Although
Itron's annual revenues will more than double with the purchase,
its debt levels will increase by a more than commensurate
amount.  The majority of the acquisition price is expected to
debt financed, through a new US$1.1 billion credit facility
along with more than US$325 million of cash on hand.  The
company indicates that equity proceeds (via a private placement
in public equity, or PIPE transaction) of roughly US$235 million
will be used to fund a part of the transaction price as well.  
Itron's business risk profile is expected to improve somewhat,
as Actaris provides the company with increased geographic and
product diversity, coming by way of a strong foothold in the
European market and the production of water and gas meters.  
This should provide additional opportunity for Itron to bundle
its automated meter reading technology to a wider array of
utilities.  
     
Standard & Poor's will resolve the CreditWatch placement
following a meeting with management to discuss the acquisition
in greater detail.  The resolution of the CreditWatch will weigh
the expected improvement in Itron's business risk profile and
the company's financial policies against the additional leverage
that will result from the transaction.

Itron Inc., -- http://www.itron.com/-- is a technology provider
and critical source of knowledge to the global energy and water
industries.  Nearly 3,000 utilities worldwide rely on Itron
technology to provide the knowledge they require to optimize the
delivery and use of energy and water.  Itron creates value for
its clients by providing industry-leading solutions for
electricity metering; meter data collection; energy information
management; demand response; load forecasting, analysis and
consulting services; distribution system design and
optimization; web-based workforce automation; and enterprise and
residential energy management.  Effective April 2006, Itron has
acquired Brazil's ELO Tecnologia.  Itron Tecnologia has offices
and a manufacturing assembly facility in Campinas, Sao Paulo,
Brazil and offices in Santiago, Chile.


PETROLEO BRASILEIRO: To Study Petrosix Technology at Attarat
------------------------------------------------------------
Brazilian state oil firm Petroleo Brasileiro SA has signed a
memorandum of understanding with Jordan's energy and mineral
resources ministry to study the use of its Petrosix technology
at block AUG 21 in the Attarat field, Business News Americas
reports.

Business News Americas relates that AUG 21 covers about 11
square kilometers and has potential reserves of 1.7 billion
barrels.

Petroleo Brasileiro said in a statement that its international
and downstream officials will conduct the two-year technical and
economic feasibility studies.

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

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

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

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

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

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


UNIAO DE BANCOS: Analysts Say Firm Do Well in Fourth Quarter
------------------------------------------------------------
Analyst Victor Martins of Banco Safra told Business News
Americas that Uniao de Bancos Brasileiros SA was a better than
other banks in the fourth quarter of 2006.

As reported in the Troubled Company Reporter-Latin America on
Feb. 16, 2007, Uniao de Bancos' fourth quarter of 2006 net
income was BRL576 million.  The annualized return on average
equity was 25.8%.  The loan portfolio highlights were the
increase in credit cards portfolio, which grew 17.1%, and the
small and medium-sized enterprises credit transactions, rose
7.0%.

Mr. Martins told BNamericas that Uniao de Bancos was rewarded
for its conservative lending policies, which the bank adopted in
2005, primarily at consumer finance unit Fininvest.

"However, if they remain really conservative, they're going to
fall behind," Mr. Martins commented to BNamericas.  Uniao de
Bancos slipped to fifth from third among private sector banks in
terms of total assets at the end of 2006.

"Unibanco will have to be a little more daring [this year]," mr.
Martins told BNamericas.

Uniao de Bancos had altered its strategy to concentrate more on
higher-margin loan segments.  Lending increased 4.7% quarter-on-
quarter and 17.1% credit card growth helped retail lending grew
6.4% in the fourth quarter of 2006.  The increase in retail
lending did not damage Uniao de Bancos' asset quality.  The
bank's 15-day non-performing loan ratio dropped to 7.7% in the
fourth quarter of 2006, from 8.1% in the third quarter of 2006,
BNamericas notes, citing Merrill Lynch analyst Valerie Fry.

Ms. Fry told BNamericas that loan-loss provisions decreased 8%
to BRL533 million in the fourth quarter of 2006, compared to the
third quarter of 2006, yet the coverage ratio rose to 76% from
73%.

Uniao de Bancos was the only Brazilian bank so far to report
improved return on equity from the third quarter of 2006,
BNamericas says, citing Deutsche Bank analyst Mario Pierry.

Headquartered in Sao Paulo, Brazil, Uniao de Bancos Brasileiros
SA -- http://www.unibanco.com/-- is a full-service financial
institution providing a range of financial products and services
to a diversified individual and corporate customer base
throughout Brazil.  The company's businesses comprise segments:
Retail, Wholesale, Insurance and Pension Plans and Wealth
Management.  Uniao de Bancos and its associated companies
FinInvest, LuizaCred, PontoCred and Tecban (Banco 24 Horas)
offer a network composed of 17,000 points of service.  It also
counts on 7,580 automated teller machines and all 30 Hours'
products and services, including the telephone service and the
Internet banking.  The company's international network consists
of branches in Nassau and the Cayman Islands; representatives
offices in New York; banking subsidiaries in Luxembourg, the
Cayman Islands and Paraguay; and a brokerage firm in New York --
Unibanco Securities Inc.

                        *     *    *

As reported in the Troubled Company Reporter Latin America on
Feb. 12, 2007, Fitch changed the outlook of these ratings of
Unibanco-Uniao de Bancos Brasileiros SA:

   -- Foreign currency IDR at 'BB+'; Outlook to Positive from
      Stable;

   -- Local currency IDR at 'BB+'; Outlook to Positive from
      Stable; and

   -- National Long-term rating at 'AA(bra)'; Outlook to
      Positive from Stable

Fitch Ratings revised the Outlook on the foreign and local
currency Issuer Default ratings and National ratings of a select
group of Brazilian banks, insurance and leasing companies to
Positive from Stable.  This rating action follows the revision
of Brazil's foreign and local currency IDR Outlooks.  All the
ratings on these banks, insurers and leasing companies are
affirmed.


USINAS SIDERURGICAS: To Have Good Results for 2006, Says Socopa
---------------------------------------------------------------
Usinas Siderurgicas de Minas Gerais SA aka Usiminas will have
good results for 2006 due to strong demand and high prices for
its products, Business News Americas relates, citing an analyst
with brokerage Socopa.

BNamericas relates that Usiminas will publish its 2006 results
on March 5.

The analyst commented to BNamericas, "Usiminas could report a
net profit of BRL2.60 billion (US$1.24bn) in 2006, and
consolidated net revenue of BRL12.4 billion, while Ebitda is
expected at BRL4.43 billion."

BNamericas underscores that Usiminas reported net profits of
BRL3.92 billion in 2005, with BRL13.0-billion net revenue and
BRL5.53-billion Ebitda.

The analyst told BNamericas, "The comparison base is not fair
and above normal, since 2005 was an exceptional year for the
company, a period of records."

BNamericas notes that Usiminas' heavy plates this year will
bring in big revenues.  The analyst explained that the plates
are exclusive products among Brazilian steelmakers.

"All of Usiminas' heavy plates production for this year and 2008
is already sold," the analyst told BNamericas.

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

                        *    *    *

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


WARNER MUSIC: S&P Puts Ratings on Watch After EMI Merger Talks
--------------------------------------------------------------
Standard & Poor's Ratings Services placed its ratings on Warner
Music Group Corp., including the 'BB-' corporate credit rating,
on CreditWatch with negative implications, following the
company's statement that it is exploring a possible merger
agreement with EMI Group PLC (BB-/Watch Neg/B), which EMI
management has confirmed.
     
"The two companies have not announced a deal or the possible
structure of financing, other than indicating that consideration
for any deal would be entirely in cash," said Standard & Poor's
credit analyst Michael Altberg.  "This has prompted our
consideration of a potential downgrade."
     
As of Dec. 31, 2006, Warner Music had approximately US$2.27
billion of debt outstanding.
     
In resolving the CreditWatch listing, Standard & Poor's will
continue to monitor developments related to the potential buyout
proposal.

                       About EMI Group

Headquartered in London, United Kingdom, EMI Group PLC --
http://www.emigroup.com/-- is the world's largest independent
music company, operating directly in 50 countries and with
licensees in a further 20.  The group has operations in China,
Brazil, and Hungary.  The group employs over 6,600 people.
Revenues in 2005 were near GBP2 billion and operating profit
generated was over GBP225 million.

                  About Warner Music Group

Warner Music Group Corp. (NYSE: WMG) -- http://www.wmg.com/--   
became the only stand-alone music company to be publicly traded
in the United States in May 2005 that operates through numerous
international affiliates and licensees in more than 50
countries.  In Latin America, Warner Music has affiliates in
Argentina, Brazil, Chile, Columbia and Mexico.  Warner Music is
home to a collection of record labels in the music industry
including Asylum, Atlantic, Bad Boy, Cordless, East West,
Elektra, Lava, Maverick, Nonesuch, Reprise, Rhino, Rykodisc,
Sire, Warner Bros., and Word.




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


ASSET BACKED: Final Shareholders Meeting Is on April 19
-------------------------------------------------------
Asset Backed Funding Corporation NIM 2004-OPT1, Ltd., will hold
its final shareholders meeting on April 19, 2007, at:

          Queensgate House
          George Town, Grand Cayman
          Cayman Islands

These agendas will be followed 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:

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


NEOCHIP LEASING: Final Shareholders Meeting Is on April 19
----------------------------------------------------------
Neochip Leasing, Ltd., will hold its final shareholders meeting
on April 19, 2007, at:

          Queensgate House
          George Town, Grand Cayman
          Cayman Islands

These agendas will be followed 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:

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


PYXIS FUNDING: Final Shareholders Meeting Is on April 19
--------------------------------------------------------
Pyxis Funding, Ltd., will hold its final shareholders meeting on
April 19, 2007, at:

          Queensgate House
          George Town, Grand Cayman
          Cayman Islands

These agendas will be followed 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:
      
          Dianne Scott
          Joshua Grant
          Maples Finance Limited
          P.O. Box 1093
          George Town, Grand Cayman
          Cayman Islands




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


FREEPORT-MCMORAN: Moody's Confirms Ba3 Corporate Credit Rating
--------------------------------------------------------------
Moody's Investors Service confirmed Freeport-McMoRan Copper &
Gold Inc.'s Ba3 corporate family rating and announced a number
of rating actions with respect to Freeport-McMoRan and Phelps
Dodge Corporation.  The ratings actions are based on the
assumption that Freeport-McMoRan completes the acquisition of
Phelps Dodge on substantially the terms agreed.  The ratings
reflect the overall probability of default of Freeport-McMoRan,
to which Moody's assigns a PDR of Ba3 (LGD4, 50%).  The outlook
for both Freeport-McMoRan and Phelps Dodge is stable.

In related rating actions, Moody's assigned a Baa3 (LGD1, 1.0%)
senior secured rating to Freeport-McMoRan's US$500 million
secured revolver and Ba2 (LGD2, 29%) senior secured ratings to
each of Freeport-McMoRan's US$1 billion secured revolver, US$2.5
billion secured Term Loan A, and US$7.5 billion secured Term
Loan B.  Freeport-McMoRan's existing 6.875%, 10.125% and 7.20%
senior unsecured notes, which are being granted a security and
guarantee package equivalent to the US$1 billion revolver and
Term Loans A & B, were upgraded to Ba2 (LGD2, 29%) from B1.  
Moody's downgraded Phelps Dodge's Cyprus Amax notes, which
mature in May 2007, as well as the ratings on Phelps Dodge's
other existing senior unsecured notes to B1 (LGD4, 63%) from
Baa2.  Moody's also affirmed Freeport-McMoRan's SGL-1
Speculative Grade Liquidity rating.  This concludes Moody's
review of the ratings of Freeport-McMoRan and Phelps Dodge begun
on Nov. 20, 2006, following the announcement that Freeport-
McMoRan had agreed to acquire Phelps Dodge for US$26 billion.

The Ba3 corporate family rating reflects Freeport-McMoRan's very
high debt level of approximately US$19 billion and what Moody's
believes will be a protracted time frame for debt reduction in
the face of softening metals prices and continued high cost
challenges.  The rating also considers the high concentration in
copper and resultant variability in earnings and cash flow,
significant capital expenditures, and a high level of reliance
on the Grasberg mine in Indonesia.  The rating also reflects the
cultural challenges inherent in the acquisition of the larger
Phelps Dodge by Freeport-McMoRan, and the execution and
political risk of Phelps Dodge's development project in the
Congo.  The Ba3 rating favorably considers the company's leading
positions in copper and molybdenum, a significant amount of gold
production, the low cost, long-life reserves at PT-FI, and
improved operating and political diversity.

Ratings confirmed are:

  Issuer: Freeport-McMoRan Copper & Gold Inc.

     -- Corporate Family Rating: Ba3
     -- Probability of Default Rating: Ba3

Ratings assigned are:

  Issuer: Freeport-McMoRan Copper & Gold Inc.

     -- US$0.5 billion Senior Secured Revolving Credit facility,
        Baa3, LGD1, 1.0%

     -- US$1.0 billion Senior Secured Revolving Credit Facility,
        Ba2, LGD2, 29%

     -- US$2.5 billion Senior Secured Term Loan A,
        Ba2, LGD2, 29%

     -- US$7.5 billion Senior Secured Term Loan B,
        Ba2, LGD2, 29%

Ratings to be upgraded:

  Issuer: Freeport-McMoRan Copper & Gold Inc.

     -- US$340 million 6.875% Senior Unsecured Notes due 2014,
        B1 --> Ba2, LGD2, 29%

     -- US$272 million 10.125% Senior Unsecured Notes due 2010,
        B1 --> Ba2, LGD2, 29%

     -- US$0.2 million 7.20% Senior Unsecured Notes due 2026,
        B1 --> Ba2, LGD2, 29%

Ratings to be downgraded:

  Issuer: Cyprus Amax Minerals Company

     -- US$60.1 million 7.375% Senior Notes due 2007,
        Baa2 --> B1, LGD4, 63%

  Issuer: Phelps Dodge Corporation

     -- US$107.9 million 8.75% Senior Notes due 2011,
        Baa2 --> B1, LGD4, 63%

     -- US$115 million 7.125% Senior Notes due 2027,
        Baa2 --> B1, LGD4, 63%

     -- US$150 million 6.125% Senior Notes due 2034,
        Baa2 --> B1, LGD4, 63%

     -- US$193.8 million 9.50% Senior Notes due 2031,
        Baa2 --> B1, LGD4, 63%

Ratings to be withdrawn:

  Issuer: PD Capital Trust I

     -- US Preferred Stock Shelf, currently (P)Baa3

  Issuer: PD Capital Trust II

     -- Preferred Stock Shelf, currently (P)Baa3

  Issuer: Phelps Dodge Corporation

     -- Multiple Seniority Shelf, currently (P)Ba1

Outlook Actions:

  Issuer: Freeport-McMoRan Copper & Gold Inc.

     -- Outlook, Changed To Stable from Rating Under Review

  Issuer: Cyprus Amax Minerals Company

     -- Outlook, Changed To Stable from Rating Under Review

  Issuer: Phelps Dodge Corporation

     -- Outlook, Changed To Stable from Rating Under Review

                  About Phelps Dodge Corp.

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

           About Freeport-McMoran Copper & Gold Inc.

Freeport-McMoRan Copper & Gold Inc. is a Louisiana based
producer of copper and gold through its Grasberg mine in
Indonesia.  Freeport had revenue in 2006 of US$5.8 billion.




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


ARMSTRONG WORLD: Inks US$20MM Settlement with Armstrong Holdings
----------------------------------------------------------------
Armstrong Holdings, Inc. and its former subsidiary, Armstrong
World Industries, Inc., have reached a settlement on all inter-
company claim and tax issues.

The settlement, if approved by the U.S. Bankruptcy Court for the
District of Delaware, calls for AWI to pay AHI US$20 million in
cash, and gives AHI an allowed claim under AWI's confirmed Plan
of Reorganization of US$8.5 million.

The settlement gives AWI the right to make all relevant tax
elections and file all required tax returns on behalf of the
Armstrong group of companies for all relevant tax periods during
which the two companies were affiliated, and to receive and
retain all related tax refunds.  AHI would recover on the AHI
Claim on the same basis as other unsecured creditors of AWI
under the AWI Plan of Reorganization.  The initial distribution
in satisfaction of the US$8.5 million AHI Claim would consist of
approximately US$2 million in cash plus approximately 98,690
shares of reorganized AWI.

Shareholders of AHI will be mailed a notice of the hearing,
which is scheduled for April 2, 2007.

                       About Armstrong

Based in Lancaster, Pennsylvania, Armstrong World Industries,
Inc. -- http://www.armstrong.com/-- the major operating  
subsidiary of Armstrong Holdings, Inc., designs, manufactures
and sells interior floor coverings and ceiling systems, around
the world.   The company has operation in Colombia, Costa Rica,
Greece Iceland and Asia among others.

The company and its affiliates filed for chapter 11 protection
on Dec. 6, 2000 (Bankr. Del. Case No. 00-04469).  Stephen
Karotkin, Esq., at Weil, Gotshal & Manges LLP, and Russell
C.Silberglied, Esq., at Richards, Layton & Finger, P.A.,
represent the Debtors in their restructuring efforts.  The
company and its affiliates tapped the Feinberg Group for
analysis, evaluation, and treatment of personal injury asbestos
claims.

Mark Felger, Esq. and David Carickhoff, Esq., at Cozen and
O'Connor, and Robert Drain, Esq., Andrew Rosenberg, Esq., and
Alexander Rohan, Esq., at Paul, Weiss, Rifkind, Wharton &
Garrison, represent the Official Committee of Unsecured
Creditors.  The Creditors Committee tapped Houlihan Lokey for
financial and investment advice.  The Official Committee of
Asbestos Personal Injury Claimant hired Ashby & Geddes as
counsel.

The Bankruptcy Court confirmed AWI's plan on Nov. 18, 2003.  The
District Court Judge Robreno confirmed AWI's Modified Plan on
Aug. 14, 2006.  The Clerk entered the formal written
confirmation order on Aug. 18, 2006.  The company's "Fourth
Amended Plan of Reorganization, as Modified," has become
effective and AWI has emerged from Chapter 11.

                        *    *    *

As reported in the Troubled Company Reporter on Oct. 9, 2006,
Standard & Poor's Ratings Services raised its corporate credit
rating on Armstrong World Industries Inc. to 'BB' from 'D',
following the Company's emergence from bankruptcy on
Oct. 2, 2006.  S&P said the outlook is stable.


BBVA COLOMBIA: To Approve COP123-Billion Dividend on March 30
-------------------------------------------------------------
BVA Colombia said in a press release that it has called for a
shareholders meeting on March 30 to approve a COP123-billion
dividend.

BBVA Colombia told Business News Americas that it will pay
stockholders COP8.56 per common and preferred share.

Headquartered in Bogota, Colombia, BBVA Colombia --
http://www.bbva.com.co/-- is engaged in the holding and    
accomplishment of all operations, acts and contracts of banking
establishments.  It is 95.16% owned by Banco Bilbao Vizcaya
Argentaria.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
March 13, 2006, Moody's Investors Service assigned a 'Ba3' long-
term foreign currency deposit rating on BBVA Colombia.  Moody's
changed the outlook to stable from negative.




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


COVANTA HOLDING: Earns US$12 Mil. in Quarter Ended Dec. 31, 2006
----------------------------------------------------------------
Covanta Holding Corporation reported financial results for the
three and twelve months ended Dec. 31, 2006.  The company is
presenting comparative financial results on an as reported basis
for the fourth quarter and a pro forma basis for the full year.  
The pro forma information was prepared as if the acquisition of
Covanta ARC Holdings Inc., which occurred in June 2005, was
consummated on Jan. 1, 2005.  The company believes that such
presentation will assist in assessing Covanta's performance.

                      Fourth Quarter Results

For the three months ended Dec. 31, 2006 total operating
revenues were US$318 million versus US$303 million in the prior
year period.  Net income was US$12 million, which compares with
2005 fourth quarter net income of US$6 million.  The fourth
quarter of 2006 was impacted by a higher than expected effective
tax rate.

At Covanta Energy Corporation, the company's principal
subsidiary, domestic waste and energy operating revenues grew 7%
to US$290 million, driven primarily by higher energy rates,
contractual service fee escalation and the inclusion of a full
quarter of revenue from the Warren facility in the fourth
quarter of 2006.  International revenues of US$25 million
decreased approximately US$3 million versus the prior year
primarily due to the sale of a small facility in China during
the second quarter of 2006.  Covanta Energy's adjusted EBITDA
was US$118 million compared to US$126 million in the prior year
period.  The reduction was primarily due to the Company's
increased spending on scheduled domestic plant maintenance
during the fourth quarter of 2006.

                       Full Year 2006

For the twelve months ended Dec. 31, 2006, total operating
revenues rose 5% to US$1.3 billion while net income was US$106
million, up 53% from the prior year period.  Covanta Energy's
adjusted EBITDA grew 8% to US$542 million resulting from higher
revenues, strong operating performance and the successful
execution of cost reduction initiatives.

"We are very pleased with our strong operating results in 2006,
in particular the meaningful growth we produced from our
existing facilities." said Anthony Orlando, the company's
President and Chief Executive Officer.  "We are also happy with
our recently completed recapitalization which positions Covanta
to take advantage of promising domestic and international growth
opportunities."

          Recapitalization Plan Successfully Implemented

The company completed a comprehensive recapitalization utilizing
a series of equity and debt financings in the first quarter of
2007, which included the following components:

   -- the refinancing of Covanta Energy's debt facilities with
      new Covanta Energy debt facilities, comprised of a US$300
      million revolving credit facility, a US$320 million funded
      letter of credit facility, and a US$650 million term loan
      (collectively referred to as the "New Credit Facilities");

   -- an underwritten public offering of 6.118 million shares of
      Covanta's common stock, in which the Company received
      proceeds of US$136.6 million, net of underwriting
      discounts and commissions;

   -- an underwritten public offering of US$373.75 million
      aggregate principal amount of convertible debentures
      issued by the company, from which Covanta received
      proceeds of US$364.4 million, net of underwriting
      discounts and commissions; and

   -- the repayment, by means of a tender offer, of US$604.4
      million in aggregate principal amount of outstanding notes
      previously issued by Covanta Energy's intermediate
      subsidiaries.

                  2007 Guidance Reaffirmed

The Company is reaffirming its full year 2007 guidance on the
following key metrics:

   -- Covanta Energy Adjusted EBITDA in the range of US$545
      million to US$565 million;

   -- Covanta Energy Free Cash Flow in the range of US$290
      million to US$320 million; and

   -- Covanta diluted earnings per share in the range of US$0.65
      to US$0.75.

Headquartered in Fairfield, New Jersey, Covanta Energy Corp.
(NYSE: CVA) -- http://www.covantaenergy.com/-- is a publicly  
traded holding company whose subsidiaries develop, own or
operate power generation facilities and water and wastewater
facilities in the United States and abroad.  Covanta has
operations in the Philippines, China, Costa Rica, India, and
Bangladesh.

                        *    *    *

As reported in the Troubled Company Reporter on Jan. 24 2007,
Standard & Poor's Ratings Services assigned a 'BB-' corporate
credit rating to Covanta Holding Corp. and a 'B' issue rating to
the company's US$325 million senior unsecured convertible bonds.
At the same time, Standard & Poor's also raised the corporate
credit rating on subsidiary Covanta Energy Co., to 'BB-' from
'B+' and assigned a 'BB-' issue rating, with a '2' recovery
rating (reflecting 80% to 100% of recovery in a default
scenario) to its proposed US$1.3 billion credit facilities
consisting of a US$680 million, first-lien secured term loan,
USUS$320 million in funded LOCs, and US$300 million in revolving
credit facilities.  The outlook remains stable.

Moody's Investors Service also assigned a Ba2 rating to Covanta
Energy Corp.'s new US$1.3 billion senior secured credit facility
and a B1 rating to Covanta Holding Corp.'s US$325 million
convertible debentures.  The Ba2 rating assigned to the new
credit facility is effectively a two-notch upgrade from the B1
rating assigned to Covanta's current first lien credit facility.
With the convertible debenture offering, Moody's has reassigned
the Corporate Family Rating to Covanta Holding Corp. from its
subsidiary, Covanta Energy Corp.  Concurrently, the CFR has been
upgraded to Ba2 from Ba3.


US AIRWAYS: IAM Says Carrier Is Using Bankruptcy as Shield
----------------------------------------------------------
The International Association of Machinists and Aerospace
Workers filed Monday, a federal lawsuit challenging US Airways'
use of bankruptcy court to avoid an arbitration case stemming
from a Machinists Union grievance.

US Airways last week filed a complaint in the U.S. Bankruptcy
Court for the Eastern District of Virginia to block a grievance
arbitration scheduled to begin yesterday, prompting the IAM's
suit.

"US Airways is attempting to use the bankruptcy court to shield
itself from its contractual obligations 17 months after exiting
bankruptcy," said IAM General Vice President Robert Roach, Jr.  
"If companies can get bankruptcy court protection without filing
for bankruptcy, no business contract, labor or otherwise, is
enforceable.  Lessors, vendors, bondholders, stockholders and
other creditors are also at risk."

All IAM-US Airways collective bargaining agreements provide for
automatic wage adjustments upon a change in control of the
airline.  IAM Districts 141 and 142 each filed grievances to
enforce the change of control provisions in October 2005,
following the US Airways-America West merger.

"US Airways is obligated to resolve collective bargaining
disputes through the process set forth in our contracts and the
Railway Labor Act," said Mr. Roach.  "Companies can not hide in
bankruptcy court forever."

The arbitrator postponed the scheduled arbitration hearing as a
result of US Airways' refusal to attend.  The IAM's complaint,
filed in Federal District Court for the Eastern District of
Virginia, asks the court to order the arbitration to go forward.
The suit is available at http://www.goiam.org/transportation/

                         About IAM

The International Association of Machinists and Aerospace
Workers -- http://www.goiam.org/-- represents 15,000 US Airways  
Fleet Service, Mechanic & Related and Maintenance Training
Specialists employees.  The Machinists Union is the largest
airline union in North America, representing more than 100,000
airline employees in almost every classification, including
Flight Attendant, Mechanic & Related, Fleet Service, Customer
Service and Reservation Agents.

                      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.  S&P said the outlook is
positive.


* COSTA RICA: Officials to Evaluate Atlantic Megaport Proposal
--------------------------------------------------------------
Costa Rican officials will evaluate technical recommendations
and proposals for the US$500-million Atlantic coast megaport
project, the nation's inter-institutional coordination minister
Marco Vargas told La Prensa Libre.

According to BNamericas, Autoridad Portuaria will present the
proposal and has started conducting studies on the project in
October 2006.

Minister Vargas told BNamericas that if the necessary steps are
taken, a draft proposal for bidding on the project will be ready
by June or July.

The report says that national port authority Japdeva will be
calling for bids on the works, which include:

          -- the modernization and integration of the Moin and
             Limon ports, and

          -- construction of a new port.

BNamericas emphasizes that Japdeva's labor union Sintrajap is
opposing the plan to call for bids.  The union will submit a
counterproposal to the project.

Minister Vargas told BNamericas that Japdeva will develop with
Santander a works plan for the project.

BNamericas underscores that about US$70 million would be needed
over the next four to five years for the upgrade of existing
docks, with CRC5 billion set aside for equipment upgrades this
year.

The new port will be launched for concession in 2008.  It will
start operating in 2015, BNamericas states.

                        *    *    *

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


* COSTA RICA: Oscar Arias Will Try to Stop Transfer of Alunasa
--------------------------------------------------------------
Costa Rican President Oscar Arias told Business News Americas
that he will try to convince Venezuela not to relocate Alunasa,
the Costa Rican subsidiary of Venezuela's state heavy industry
holding Corporacion Venezolana de Guyana.

As reported in the Troubled Company Reporter-Latin America on
Feb. 21, 2007, Venezuelan President Hugo Chavez considered
closing down Alunasa due to geopolitical, technical and economic
reasons, contrary to what reports said that the closure was caused
by his political spat with Costa Rican President Oscar Arias.  
President Arias had said that the special powers granted to
President Chavez were "the antithesis of democracy."  The
statement upset the Venezuelan leader, who allegedly decided to
transfer Alunasa to another nation in Central America.  He also
ordered the immediate suspension of his country's aluminum
shipments to Costa Rica.

Published reports say that the Venezuelan government will
relocate Alunasa to Nicaragua.

Relocating Alunasa is not advisable because it would be more
expensive than constructing a new plant in Nicaragua with modern
technology, BNamericas says, citing President Arias.

"Experts tell us that it is much more expensive to relocate it,
whether to Panama or Nicaragua.  We will see if we can persuade
the Venezuelan government that, economically, it is not the best
option," President Arias told reporters.

                        *     *     *

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




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


PETROECUADOR: Awards Napo Crude to Shell's Trading Firm
-------------------------------------------------------
Ecuador's state oil firm Petroecuador said in a statement that
it has awarded Shell Trading a load of 360,000 barrels of Napo
crude.

Business News Americas relates that four other firms submitted
offers for the crude:

          -- Glencore,
          -- Mitsubishi,
          -- Valero Marketing, and
          -- AOT Trading.

According to BNamericas, Shell offered a discount from the
US$13.23 per barrel market price.

The crude will be delivered between March 31 and April 1,
BNamericas states.

                    About Shell Trading

Shell Trading US Company is a corporation that acts as the
single market interface for Royal Dutch Shell companies and
affiliates in the United States.  It became operational in
August 1998 and has offices in Texas and has an affiliated Shell
Trading company in Calgary, Alberta.

                    About Petroecuador

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


PETROECUADOR: Receives 220,000 Barrels of Diesel from Venezuela
---------------------------------------------------------------
Ecuador's state oil firm Petroecuador said in a statement that
it has received the first of three shipments of 220,000 barrels
of diesel from Venezuela.

Business News Americas relates that the shipments are under a
diesel-for-crude exchange between Petroecuador and Venezuelan
state oil firm Petroleos de Venezuela.  Petroecuador will be
able to save at least US$1.5 million.

The second shipment will be on March 15-17, while the third
delivery will be on March 22-24.  Both of the deliveries will
also have 220,000 barrels, BNamericas notes.

According to BNamericas, each barrel from the first shipment
will have a price of Platts reference price plus US$3.23.  The
next two deliveries will have a value of Platts plus US$3.77.  
The shipments have a market value of US$43.8 million.

Petroleos de Venezuela could ship 36,000 barrels per day through
April due to existing contracts, after which point it could
start to deliver 72,000 barrels per day, Petroecuador said in a
statement.

                 About Petroleos de Venezuela

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

                     About Petroecuador

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




=====================
E L   S A L V A D O R
=====================


AES CORP: To Reschedule Release of 2006 Financial Results
---------------------------------------------------------
The AES Corporation will reschedule the release of its fourth
quarter and full year 2006 financial results and its earnings
conference call that was tentatively scheduled for
Feb. 28, 2007.  The company will also restate its previously
reported financial statements.  Revised dates for the earnings
release and conference call will be announced at a future time.  
As the company has not finalized its accounting review or year-
end audit, it will likely seek an extension from the SEC of its
filing deadline for its 2006 10-K to March 16, 2007.

The company has identified certain errors in its financial
statements.  Many of these errors were identified as a result of
the company's continuing remediation of previously identified
material weaknesses.  Other errors were discovered during the
company's quarterly and year-end accounting reviews.  As a
result of the errors discovered, the company has decided to
conduct additional reviews and analyses as of year-end, which
are currently ongoing.  The company believes that all errors
which have been identified to date were inadvertent and
unintentional.

Since the accounting review is not complete, no definitive
conclusions can be presented regarding the adjustments that will
be made in the restatement.  However, at this stage of the
company's review, the net impact of recording these adjustments
is not expected to be material to any prior periods.  
Nevertheless, the company is still required to restate its
financial statements because, if it did not, the cumulative
impact of correcting these adjustments would be recorded in the
fourth quarter and the full year-ending December 31, 2006, and
would likely be material.  In addition, the company does not
believe that any adjustments will affect total cash balances.
However, as noted, subsequent review and analysis could reveal
errors that are material to prior periods or that affect cash.

In addition, the company said that it is reviewing its
accounting for long term compensation, which includes restricted
stock units and stock options. At this stage of the review,
management does not believe that any accounting errors related
to long-term compensation are the result of any fraudulent
practice.  The company's review relates primarily to the fact
that it has generally been treating the board approval date for
its annual long-term compensation grants as the accounting
measurement date for its share-based compensation.  However,
since accounting measurement dates are determined by
finalization of awards or communication to employees of awards,
it is likely that the company incorrectly calculated its share-
based compensation expense.  The company is also reviewing the
potential impact on the accounting measurement date of
administrative errors in the granting process, including
administrative delays, errors in data entry and communication,
and other mistakes.  The company has retained an outside
consulting firm to assist with its review of its accounting for
share-based compensation.  As this review is in process, the
company is still evaluating whether any adjustment to its share-
based compensation expense may be required and, if there is such
an adjustment, whether the expense will be material to any prior
period.  In addition, subsequent findings could alter the scope
of the review.

The decision to restate prior financial statements was made by
management on Feb. 22, 2007, after consultation with AES's
Financial Audit Committee and after discussion with the
company's independent registered public accounting firm,
Deloitte & Touche LLP.

                       About AES Corp.

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

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

                        *     *     *

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




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


BRITISH AIRWAYS: Hires Porter Novelli for Public Relations Work
---------------------------------------------------------------
British Airways plc has appointed Porter Novelli to support its
North American public relations activities.  In this role,
Porter Novelli will focus on both corporate and consumer
outreach to continue building British Airways' reputation
amongst target audiences throughout North America.

"Porter Novelli has shown an insightful understanding of our
business needs for the North American market," said Robin Hayes,
executive vice president Americas for British Airways.  "We
selected Porter Novelli for its expertise and reputation in
corporate public relations and consumer marketing and we look
forward to working with them on a variety of programs as part of
a larger global effort to increase customer loyalty and further
enhance our brand identity in the region."

"The opportunity to apply our insights about the British Airways
customer and her influencers is among the main reasons we are
thrilled to be working with this iconic global brand," said
Julie Winskie, partner and chief client officer of Porter
Novelli.  "Our 360 degree approach to assure an accurate view of
all possible points of contact for a client -- from
environmental to policy to emerging new consumer forces -- puts
the British Airways opportunity right in the Porter Novelli
sweet spot."

Porter Novelli also represents British Airways for consumer
public relations work in their headquarters UK market as well as
in Trinidad and Tobago.

                      About the Company

Headquartered in West Drayton, United Kingdom, British Airways
Plc -- http://www.ba.com/-- operates of international and  
domestic scheduled and charter air services for the carriage of
passengers, freight and mail, and provides of ancillary
services.  The British Airways group consists of British Airways
Plc and a number of subsidiary companies including in particular
British Airways Holidays Ltd. and British Airways Travel
Shops Ltd.  BA has offices in India and Guatemala.

                        *     *     *

As reported on Feb. 7, Moody's Investors Service changed the
outlook on the Ba1 corporate family and Ba2 senior unsecured
debt ratings of British Airways Plc and its guaranteed
subsidiaries to positive from negative.


* GUATEMALA: Banguat Inks Recapitalization Pact with Banks
----------------------------------------------------------
Guatemalan central bank Banguat said in a statement that it has
signed an accord with local banks to recapitalize the nation's
deposit insurance fund FOPA for up to GTQ2.0 billion.

There is an urgent need to recapitalize FOPA to enhance the
solvency of the fragile banking system, Business News Americas
notes, citing analysts.

According to BNamericas, FOPA's assets decreased to GTQ93.4
million after Bancafe was intervened.

FOPA's assets will be increased to GTQ870 million.  About GTQ274
million of the amount will come from the government, BNamericas
states.

                        *    *    *

Fitch Ratings assigned these ratings on Guatemala:

                     Rating     Rating Date
                     ------     -----------
   Country Ceiling    BB+      Feb. 22, 2006
   Long Term IDR      BB+      Feb. 22, 2006
   Short Term IDR     B        Feb. 22, 2006
   Local Currency
   Long Term Issuer
   Default Rating     BB+      Feb. 22, 2006

Fitch also rated Guatemala's senior unsecured bonds:

Maturity Date          Amount        Rate       Ratings
-------------          ------        ----       -------
Aug. 3, 2007        US$150,000,000     8.5%         BB+
Nov. 8, 2011        US$325,000,000    10.25%        BB+
Aug. 1, 2013        US$300,000,000     9.25%        BB+
Oct. 6, 2034        US$330,000,000     8.125%       BB+




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


KAISER ALUMINUM: Will Hold Shareholders' Meeting on June 6
----------------------------------------------------------
Kaiser Aluminum Corporation will hold its Annual Meeting of
Stockholders at 9:00 am, Pacific Time on June 6, 2007, at:

         The Westin South Coast Plaza,
         686 Anton Boulevard
         Costa Mesa, CA 92626

All holders of record of the Company's common stock outstanding
as of the close of business on April 12, 2007, will be entitled
to vote at the 2007 Annual Meeting.

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




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


ADVANCED MARKETING: Inks Asset Purchase Pact with Baker & Taylor
----------------------------------------------------------------
Advanced Marketing Services Inc., and Baker & Taylor Inc.
entered into an Asset Purchase Agreement on Feb. 16, for the
sale of majority of the company's assets, Mark D. Collins, Esq.,
at Richards, Layton & Finger, P.A., in Wilmington, Delaware,
notified the Court.

Under the agreement, Baker & Taylor will acquire all of AMS'
right, title, and interest in certain of its assets including:

     (i) certain assigned contracts,

    (ii) certain tangible property owned or used by AMS in
         connection with the conduct of its business,

   (iii) all trade accounts receivable of AMS' business,
         including unbilled accounts receivable,

    (iv) an inventory of Advantage Publishers Group selected by
         Baker & Taylor,

     (v) the capital stock of Advanced Marketing Services
         Investments Inc.; Advanced Marketing S. de R.L, de
         C.V.; and Advanced Marketing (Europe) Ltd., and

    (vi) product prepayments with respect to APG.

Baker & Taylor will pay:

    (i) US$20,000,000;

   (ii) the Selected APG Inventory Price;

  (iii) the APG Product Prepayment Price; and

   (iv) the Accounts Receivable Price; plus or minus

    (v) the net proration of the Apportioned Obligations
       determined in accordance with the agreement.

Baker & Taylor will pay to AMS 50% of the Purchase Price on the
Closing Date; 25% no later than 60 days after the Closing Date;
and the remaining 25% no later than 90 days after the Closing
Date.

The Closing Date will occur on March 13.

A full-text copy of the agreement is available for free at:

   http://bankrupt.com/misc/AMSandB&TAPA.pdf

                 About Advanced Marketing

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

The company and its two affiliates, Publishers Group
Incorporated and Publishers Group West Incorporated filed for
chapter 11 protection on Dec. 29, 2006 (Bankr. D. Del. Case Nos.
06-11480 through 06-11482).  Suzzanne S. Uhland, Esq., Austin K.
Barron, Esq., Alexandra B. Feldman, Esq., O'Melveny & Myers,
LLP, represent the Debtors as Lead Counsel.  Chun I. Jang, Esq.,
Mark D. Collins, Esq., and Paul Noble Heath, Esq., at Richards,
Layton & Finger, P.A., represent the Debtors as Local Counsel.  
When the Debtors filed for protection from their creditors, they
listed estimated assets and debts of more than US$100 million.  
(Advanced Marketing Bankruptcy News, Issue No. 7; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or  
215/945-7000)

The Debtors' exclusive period to file a chapter 11 plan expires
on April 28, 2007.


ADVANCED MARKETING: Court Grants Final Access to DIP Financing
--------------------------------------------------------------
The Hon. Christopher S. Sontchi of the U.S. Bankruptcy Court for
the District of Delaware authorized Advanced Marketing Services
Inc. and its debtor-affiliates, on a final basis, to dip their
hands into the DIP financing facility arranged by Wells Fargo
Foothill Inc.

The Debtors are authorized and empowered to immediately obtain
the Postpetition Financing and incur the Obligations pursuant to
the terms and conditions of the final DIP ruling and the Loan
Documents.

The Debtors are authorized to enter into, execute, deliver,
perform, and comply with all of the terms and covenants of the
Loan Agreement and other Loan Documents, Judge Sontchi notes.

Advanced Marketing Services, Publishers Group Inc., and
Publishers Group West Inc. are borrowers under a Loan and
Security Agreement dated April 27, 2004, with Wells Fargo
Foothill Inc., as agent, and a consortium of lenders.  The
Senior Facility provides for a revolving line of credit up to a
maximum commitment level of US$90,000,000.

Curtis R. Smith, AMS's vice-president and chief financial
officer, related that the Senior Lenders have agreed to continue
to provide liquidity to the Debtors through a DIP Loan Facility,
which carries forward many of the terms of the Senior Facility.

Against this backdrop, the Debtors sought the Court's authority
to obtain from Foothill and the Senior Lenders, though the DIP
Loan Facility, cash advances and other extensions of credit in
an aggregate principal amount of up to US$75,000,000.

Absent immediate and continued availability of credit, the
Debtors' operations will be severely disrupted, and they will be
forced to cease or sharply curtail operations of some or all of
their businesses, which in turn will eliminate the Debtors'
ability to generate operating revenue and the value of their
businesses as a going concern, Mr. Smith said.

Before agreeing to enter into the DIP Loan Facility with
Foothill and the Senior Lenders, the Debtors engaged in numerous
discussions concerning secured and unsecured financing, as well
as equity or other infusions, with several potential investors.  
Yet, they received only one proposal for debtor-in-possession
financing other than that offered by the Senior Lenders.  Upon
evaluation, the Debtors determined that the alternate proposal
was not viable.

"No other prospective lender was willing to provide debtor in
possession financing without at least the type of protections
afforded Senior Lenders under the DIP Loan Facility," Mr. Smith
relates.

                  Terms of the DIP Facility

The DIP Facility provides, among other things, that each Lender
with a Revolver Commitment agrees to make Advances to the
Debtors at any one time in amounts not exceeding the Lender's
Pro Rata Share of an amount equal to the lesser of (i) the
Maximum Revolver Amount -- presently set at US$75,000,000 --
less the Letter of Credit Usage, or (ii) the Borrowing Base less
the Letter of Credit Usage.

     Lender                                 Revolver Commitment
     ------                                 -------------------
     Wells Fargo Foothill Inc.                  US$37,500,000
     LaSalle Business Credit, LLC                  16,500,000
     Marathon Structured Finance Fund, L.P.         8,250,000
     Capitalsource Finance LLC                     12,750,000

The Issuing Lender agrees to issue Letters of Credit for the
account of the Borrowers or to purchase or execute an L/C
Undertaking with respect to letters of credit issued by an
Underlying Issuer for the account of the Borrowers.  The Issuing
Lender will have no obligation to issue an L/C if any of these
events would result after giving effect to the issuance of the
requested L/C:

   (1) the L/C Usage would exceed the Borrowing Base less the
       outstanding amount of Advances; or

   (2) the L/C Usage would exceed US$10,000,000; or

   (3) the L/C Usage would exceed the Maximum Revolver Amount
       less the outstanding amount of Advances.

The Borrowing Base under the DIP Loan Agreement determines the
maximum amount that may be borrowed as Advances.  It is a
function of inventory and account values ranging up to 85% of
appraised liquidation values and is subject to various reserves,
including a Dilution Reserve in an amount sufficient to reduce
the advance rate against Eligible Accounts by 1 percentage point
for each percentage point by which Dilution is in excess of 5%.

The interest rate on all Obligations will be calculated based on
Wells Fargo Bank, National Association's prime rate plus 3.50%.

The DIP Agreement was scheduled to close by Jan. 4.  The
postpetition facility will continue in full force and effect for
a term ending in July.  The Lender Group, upon the election of
the Required Lenders, will have the right to terminate its
obligations under the DIP Loan Agreement immediately and without
notice on the occurrence and during the continuation of an Event
of Default.

The proceeds of the Advances may be used (1) on the Closing
Date, to pay transactional fees, costs, and expenses incurred in
connection with the DIP Loan Agreement, the other Loan
Documents, and contemplated transactions including the funding
in whole or in part of the Carve Out Reserve Fund, and (ii) for
the Debtors' lawful and permitted business and general corporate
purposes including the financing of working capital needs and
capital expenditures, in accordance with the Debtors' 14-week
Budget related to the DIP Loan Facility.

The Budget runs through March 30, and sets forth the
expenditures that the Debtors critically need to make to allow
them to continue to operate.

The Borrowers agree to pay a variety of fees and charges to
Foothill:

   -- a Letter of Credit fee accruing at 3.50% per annum times
      the Daily Balance of the undrawn amount of all outstanding
      L/C;

   -- on the first day of an each month, an Unused Line Fee
      equal to 0.375% per annum times the result of (a) the
      Maximum Revolver Amount, less (b) the sum of (1) the
      average Daily Balance of Advances that were outstanding
      during the immediately preceding month, plus (2) the
      average Daily Balance of the L/C Usage during the
      immediately preceding month;

   -- a US$750,000 closing fee, which will be fully earned, due,
      and payable on the Closing Date;

   -- a US$5,000 servicing fee per quarter, due and payable, in
      arrears, on the first day of each quarter, commencing with
      the first day of the quarter immediately following the
      Petition Date; and

   -- certain audit, appraisal and valuation fees and charges
      relating to audits and appraisals performed by personnel
      employed by Foothill.

The postpetition obligations due the Lenders by the Debtors will
be entitled to the super-administrative priority afforded under
Section 364(c)(1) of the Bankruptcy Code.

The Lenders' liens and administrative claims will be subject to
a carve out for (i) the fees payable to the Clerk of the
Bankruptcy Court and to the Office of the United States Trustee
relating to the Bankruptcy Cases; and (ii) Professional Fee
Carve Out Expenses of US$2,000,000 prior to a Payoff Event and
US$3,000,000 afterwards.

Moreover, the Debtors covenant that they will not:

   (a) on any measurement date where the Projected Operating
       Cash Flow is a positive amount, have Actual Operating
       Cash Flow for the relevant period that is both less than
       85% of the Projected Operating Cash Flow, and at least
       US$2,500,000 less than Projected Operating Cash Flow, for
       the period; or

   (b) on any measurement date where the Projected Operating
       Cash Flow is a negative amount, have Actual Operating
       Cash Flow for the relevant period that is both less than
       115% of the Projected Operating Cash Flow, and at least
       US$2,500,000 less than the Projected Operating Cash Flow,
       for the period.

Mark D. Collins, Esq., at Richards, Layton & Finger, P.A., in
Wilmington, Delaware, clarified that the terms and covenants set
forth in the Senior Facility are amended and restated in their
entirety by the terms and conditions set forth in the DIP Loan
Agreement.  However, the DIP Loan Agreement does not extinguish
the obligations for the payment of money outstanding under the
Senior Facility, or for the discharge or release of any
security.  Rather, the DIP Loan Agreement provides for the
satisfaction of the prepetition obligations owed to the Senior
Lenders through application of Cash Collateral postpetition -- a
"roll-up" of the prepetition debt.

The Roll-up provision provides that each Senior Lender is
entitled to apply any and all proceeds of the Collateral or the
Senior Collateral or any other consideration it received in
respect of the Senior Obligations in accordance with the Senior
Facility and the Loan Documents, which includes the application
of Senior Collateral -- first, on account of the Senior
Obligations until the Senior Obligations are paid and satisfied,
and then on account of the Postpetition Obligations.  
Furthermore, all outstanding L/C under the Senior Facility are
deemed to be L/C and Obligations under the DIP Credit Agreement.  
Mr. Collins said the Debtors have determined that this provision
is appropriate given that the Senior Lenders are substantially
over-secured.

               Qualified Transaction Timeline

The Debtors agree with the DIP Lenders to file within 10 days
after the Petition Date a qualified transaction motion calling
for the sale of substantially all or a significant portion of
their business, or a refinancing or debt or equity investment or
other recapitalization.

Within 20 days after the filing of the Qualified Transaction
Motion, the Debtors will attempt to obtain approval of
competitive bidding procedures and to identify a "stalking
horse" bidder in the event they pursue a sale.

The DIP Lenders want the Qualified Transaction Motion approved
within 45 days after the filing.  They also want to receive cash
proceeds from the Qualified Transaction within 50 days.

Mr. Collins said the Debtors believe that the Qualified
Transaction provisions are reasonable given the overall benefits
of the DIP Facility, and given that the Senior Lenders were
unwilling to extend financing without those provisions.

Foothill is represented in the Debtors' cases by Paul S. Arrow,
Esq., and William S. Brody, Esq., at Buchalter Nemer, in Los
Angeles, California, and Kurt F. Gwynne, Esq., at Reed Smith,
LLP, in Wilmington, Delaware.

A full-text copy of the Final DIP Ruling is available for free
at http://bankrupt.com/misc/AMSFinalDIPOrder.pdf

                  About Advanced Marketing

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

The company and its two affiliates, Publishers Group
Incorporated and Publishers Group West Incorporated filed for
chapter 11 protection on Dec. 29, 2006 (Bankr. D. Del. Case Nos.
06-11480 through 06-11482).  Suzzanne S. Uhland, Esq., Austin K.
Barron, Esq., Alexandra B. Feldman, Esq., O'Melveny & Myers,
LLP, represent the Debtors as Lead Counsel.  Chun I. Jang, Esq.,
Mark D. Collins, Esq., and Paul Noble Heath, Esq., at Richards,
Layton & Finger, P.A., represent the Debtors as Local Counsel.  
When the Debtors filed for protection from their creditors, they
listed estimated assets and debts of more than US$100 million.  
(Advanced Marketing Bankruptcy News, Issue No. 7; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or  
215/945-7000)

The Debtors' exclusive period to file a chapter 11 plan expires
on April 28, 2007.


AXTEL SAB: Reports MXN1.1 Bil. in 2006 Fourth Quarter Revenues
--------------------------------------------------------------
Axtel, S.A.B. de C.V. reported its unaudited fourth quarter
results ended Dec. 31, 2006.

Highlights:

   * During the fourth quarter, the company acquired Avantel,
     consolidating its position as the second-largest fixed-line
     integrated telecommunications company in Mexico measured by
     customers, revenues and EBITDA.

   * At the end of the fourth quarter, the company's network
     included 1,090 km of metro fiber rings, 34 digital
     switches, 396 FWA sites, 683 point-to-point links, 166
     point-to-multipoint sites (almost all are within the FWA
     sites) and 7,700 km of long-haul fiber optic.

   * At the end of the fourth quarter of 2006, Internet
     subscribers totaled 104,703 from 45,898 at the end of 2005.
     Non dial-up subscribers represented 56% or 58,464.

                 Revenues from Other Sources

Local service revenues amounted to MXN1.1 billion for the three-
month period ended Dec. 31, 2006, compared to MXN979.1
million for the same period ended in 2005, an increase of
MXN141.5 million or 14%.  This change is explained by a MXN61.0
million contribution from Avantel and MXN81.5 million from
increased monthly rents, value-added services and cellular
revenues originated from higher number of lines in service.  For
the twelve-month period ended Dec. 31, 2006, revenues from local
services totaled MXN4.2 billion, an annual improvement of
MXN543.9 million, or 15%, from MXN3.6 billion recorded in the
same period in 2005.

Long distance service revenues were MXN244.2 million for the
three-month period ended Dec. 31, 2006, compared to MXN119.7
million in the same period in 2005, an increase of MXN124.5
million or 104%. This increase was mainly due to the Avantel
customers.  For the twelve-month period ended Dec. 31, 2006,
long distance services grew to MXN607.7 million from MXN470.2
million registered in the same period in 2005, an increase of
MXN137.5 million or 29%.

Data and network service revenues were MXN240.1 million for the
three-month period ended Dec. 31, 2006, compared to MXN57.1
million in the same period in 2005, an increase of MXN183.0
million or 320%.  This variation is explained by a MXN163.7
million contribution from Avantel and a MXN19.3 million by data
services provided to existing and new customers.  For the
twelve-month period ended Dec. 31, 2006, data and network
services grew to MXN442.4 million from MXN207.8 million
registered in the same period in 2005, an increase of MXN234.6
million or 113%.

International traffic revenues amounted to MXN180.7 million for
the three-month period ended Dec. 31, 2006, compared to MXN121.4
million in the same period in 2005, an increase of MXN59.2
million or 49%. Out of the MXN180.7 million, Avantel contributed
with MXN67.6 million.  For the twelve-month period ended
Dec. 31, 2006, international traffic revenues grew to MXN532.8
million from MXN490.8 million registered in the same period in
2005, an increase of MXN41.9 million or 9%.

Revenue from other services accounted for MXN313.6 million in
the fourth quarter of 2006, a positive variation of MXN216.3
million, or 223%, from MXN97.2 million registered in the same
period in 2005.  Avantel contributed with MXN187.7 million and
MXN28.6 million are due to activation fees and other revenues
related to existing and new customers.  Other services revenue
increased to MXN672.8 million for the twelve-month period ended
Dec. 31, 2006, from MXN365.1 million for the same period in year
2005, an increase of MXN307.8 million or 84%.

                         Consumption

Local calls totaled 518.1 million in the three-month period
ended Dec. 31, 2006, an increase of 73.5 million, or 17%, from
444.6 million recorded in the same period in 2005.  A higher
number of lines in service and 12.1 million calls contributed
from Avantel in December were the main driver for this increase.  
For the twelve-month period ended Dec. 31, 2006, local calls
increased to 1,953.1 million from 1,615.2 million registered in
the same period in 2005, an increase of 337.9 million calls or
21%.

Minutes of use of calls completed to a cellular line amounted to
215.4 million in the three-month period ended Dec. 31, 2006,
compared to 171.0 million in the same period in 2005, a 26%
improvement equivalent to 44.4 million minutes.  For the twelve-
month period ended Dec. 31, 2006, cellular minutes grew 180.7
million, or 30%, from 597.5 million registered in the twelve-
month period ended Dec. 31, 2005, to 778.2 million in the same
period in 2006.

Long distance minutes increased to 1,124.1 million for the
three-month period ended Dec. 31, 2006 from 780.3 million in the
same period in 2005, 44% or 343.8 million above.  This increase
is explained by 133.6 million contributed from Avantel and from
a larger consumption due to bundled offers that incorporate long
distance minutes.  For the twelve-month period ended
Dec. 31, 2006, long distance minutes amounted 3,526.8 million,
compared to 2,944.7 million registered in the same period in
2005, an increase of 582.1 million of minutes, or 20%.

As of Dec. 31, 2006, lines in service totaled 792.5K, an
increase of 186.6K from the same date in 2005.  148.4K net adds
are due to organic growth in existing cities as well as five new
cities deployed in 2006 and 38.2K lines are contributed from
Avantel.

As of Dec. 31, 2006, 64 kbps line equivalents totaled 416,304,
an increase of 393,709 from the same date in 2005.  349,902
line-equivalents are contributed from Avantel and 43,888 are
related to the organic growth from business customers.

As of Dec. 31, 2006, Internet subscribers totaled 104,703, an
increase of 128%, from 45,898 recorded on the same date in 2005.  
Non dial-up subscribers represented 56% or 58,464.  Avantel
contributed with 39,486 subscribers and the other 19,319
additional subscribers are explained by existing customers
upgrading to double-play offers and by new customers.

           Cost of Revenues and Operating Expenses

For the three-month period ended Dec. 31, 2006, the cost of
revenues totaled MXN709.5 million, an increase of MXN273.6
million compared with the same period of year 2005.  For the
twelve-month period ended Dec. 31, 2006, the cost of revenues
reached MXN2,028.1 million, an increase of MXN414.8 million in
comparison with the same period in year 2005.

Gross profit is defined as revenues minus costs of revenues.  
For the fourth quarter of 2006, the gross profit accounted for
MXN1,389.7 million, an increase of MXN451.0 million or 48%,
compared with the same period in year 2005. For the twelve-month
period ended Dec. 31, 2006, the company's gross profit totaled
MXN4,405.7 million, compared to MXN3,554.8 million recorded in
the same period of year 2005, a gain of MXN851.0 million or 24%.

For the fourth quarter of year 2006, operating expenses grew
MXN256.8 million, or 57%, totaling MXN706.3 million compared to
MXN449.5 million for the same period in year 2005.  For the
twelve-month period ended Dec. 31, 2006, operating expenses
added MXN2,178.2 million, coming from MXN1,755.8 million in the
same period in 2005, an increase of MXN422.4 million.  
Additional expenses associated with the integration of Avantel
and the five new cities opened in 2006 were the main factors
that generated this increase.

The Adjusted EBITDA was MXN683.4 million for the three-month
period ended Dec. 31, 2006, as compared to MXN489.2 million for
the same period in 2005, an increase of 40%.  As a percentage of
total revenues it was 32.6% for the three month period ended
Dec. 31, 2006.  For the twelve-month period ended Dec. 31, 2006,
amounted to MXN2,227.5 million, compared to MXN1,798.9 million
in the same period in year 2005, a positive variation of
MXN428.6 million, or 24%.

Due to the organic expansion of the company's asset base
combined with the new Avantel assets in December, depreciation
and amortization totaled MXN449.6 million in the three-month
period ended Dec. 31, 2006, compared to MXN320.4 million for the
same period in year 2005, an increase of MXN129.2 million or
40%. Depreciation and amortization for the twelve-month period
ended Dec. 31, 2006, reached MXN1,516.4 million, from MXN1,176.0
million in the same period in year 2005, an increase of MXN340.3
million, or 29%.

Operating income totaled MXN233.8 million in the three-month
period ended Dec. 31, 2006, compared to an operating income of
MXN168.8 million registered in the same period in year 2005, an
increase of MXN65.0 million or 39%.  For the twelve-month period
ended Dec. 31, 2006, the company's operating income reached
MXN711.1 million when compared to the income registered in the
same period of year 2005 of MXN622.9 million, MXN88.3 million or
14% above.

The comprehensive financial loss was MXN90.3 million for the
three-month period ended Dec. 31, 2006, compared to a loss of
MXN30.2 million for the same period in 2005.  The increased loss
in the fourth quarter of 2006 was a result of additional MXN36.0
million interest expense due to a larger amount of debt combined
with a non-cash monetary position loss.  For the twelve-month
period ended Dec. 31, 2006, the loss is partially explained by a
foreign exchange loss and a reduced non-cash monetary position
gain in 2006 compared to 2005.

For the twelve-month period ended Dec. 31, 2006, Axtel invested
MXN1,643.3 million in assets compared to MXN1,703.1 million in
the same period of year 2005, a decrease of MXN59.8 million.  In
addition, Axtel completed the purchase of Avantel for an amount
of USD. 516.0 million.

                         About Axtel

Headquartered in Monterrey, Mexico, AXTEL is a Mexican
telecommunications company that provides local and long distance
telephony, broadband Internet, data and built-to-suit
communications solutions in 17 cities and long distance
telephone services to business and residential customers in over
200 cities.  The seventeen cities in which AXTEL currently
provides local services are Mexico City, Monterrey, Guadalajara,
Puebla, Leon, Toluca, Queretaro, San Luis Potosi,
Aguascalientes, Saltillo, Ciudad Juarez, Tijuana, Torreon
(Laguna region), Veracruz, Chihuahua, Celaya and Irapuato.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Jan. 25, 2007, Standard & Poor's Ratings Services assigned its
'BB-' rating to Axtel SAB de CV's US$250 million Senior
Unsecured Notes due January 2017.  It also affirmed its 'BB-'
long-term corporate credit rating on Axtel.  S&P said the
outlook is negative.

As reported in the Troubled Company Reporter-Latin America on
Jan. 23, 2007, Moody's Investors Service has confirmed Axtel,
S.A.B. de C.V.'s Ba3 corporate family rating and changed the
rating outlook to stable.


AMERICAN AXLE: Offers US$300 Million of Senior Unsec. Notes
-----------------------------------------------------------
American Axle & Manufacturing Holdings Inc. and its wholly owned
subsidiary, American Axle & Manufacturing Inc. has offered
US$300 million of 10-year senior unsecured notes due 2017.  The
offering is subject to market and other customary conditions.
The offering is being made pursuant to an effective shelf
registration statement previously filed with the Securities and
Exchange Commission.

Net proceeds from this financing will be used for general
corporate purposes, which includes repaying amounts outstanding
under its revolving credit facility.

The offering is being lead managed by J.P. Morgan Securities
Inc. and Banc of America Securities LLC.

This announcement does not constitute an offer to sell or a
solicitation of an offer to buy any securities.  The notes will
not be sold in any state or jurisdiction in which such an offer,
solicitation or sale would be unlawful.

Copies of the prospectus supplement and accompanying prospectus
related to the offering may be obtained from:

         J.P. Morgan Securities Inc.
         270 Park Avenue, 8th Floor
         New York, NY 10017
         Tel: (800) 245-8812

                  -- or --

         Banc of America Securities LLC
         100 West 33rd Street, 3rd Floor
         New York, NY 10001
         Tel: (800) 294-1322

American Axle & Manufacturing -- http://www.aam.com/--   
manufactures, engineers, designs and validates driveline and
drive train systems and related components and modules, chassis
systems and metal-formed products for light trucks, sport
utility vehicles and passenger cars.  In addition to locations
in the United States, AAM also has offices or facilities in
Brazil, China, England, Germany, India, Japan, Mexico, Poland,
Scotland and South Korea.


AMERICAN AXLE: Fitch Places BB Rating on New Sr. Notes Due 2017
---------------------------------------------------------------
Fitch has assigned a 'BB' rating to American Axle &  
Manufacturing's (NYSE: AXL) new senior unsecured notes due
2017.  Fitch has also affirmed American Axle's existing ratings:

   -- Issuer Default Rating (IDR) 'BB';
   -- Senior unsecured bank facility 'BB'; and
   -- Senior unsecured 'BB'.

The Outlook remains Negative.  Including the new issuance, the  
ratings cover approximately US$972 million of debt.

Fitch's affirmation reflects the risks associated with American  
Axle's dependence on General Motors (Fitch IDR 'B'; Watch  
Negative) for roughly 75% of its total revenue and in  
particular, GM's passenger trucks which compete in segments that  
will remain under pressure in 2007.  Partially offsetting these  
risks are American Axle's margin performance, solid liquidity,  
competitive position, the financial benefits of recent headcount  
reduction, and an expected improvement in free cash flow in  
2007.  Free cash flow over the next several years will benefit  
from recent restructuring activities and reduced capital  
expenditure levels following an extended period of higher costs  
associated with the launch of GM's GMT900 trucks and  
international growth initiatives.  The new business backlog with  
customers other than GM continues to grow.

The Negative Outlook reflects the credit condition of American  
Axle's largest customer, critical labor negotiations later this  
year between GM and the United Auto Workers union, a financially  
stressed base of suppliers other than American Axle, and the  
uncertain sustainability of large pickup truck production volume  
in light of a slump in new home construction.  In addition, the  
uncertainty related to large sport utility vehicle volumes and  
consumers reaction to fuel prices.  Fitch could revise the  
Outlook to Stable if GM's production outlook stabilizes or  
American Axle's free cash flow materially improves in 2007,  
providing increased cushion against the uncertainty of the  
factors listed above.

Fitch has also assigned a rating of 'BB' to American Axle's new  
senior unsecured bonds due Feb 2017.  The issuance capitalizes  
on favorable capital market conditions and supplements American  
Axle's liquidity position through an uncertain 2007 industry  
environment.  Fitch anticipates that, in the absence of any  
labor disruptions at American Axle's largest customer, issuance  
proceeds would be used to keep revolver capacity available with  
the balance held in cash.  Axle will likely use the cash on the  
balance sheet instead of the revolver to handle mid-period  
working capital requirements during the year.  Upon resolution  
of General Motors/United Auto Workers-contract negotiations,  
Fitch expects to see a reduction in total debt.  A 'Change In  
Control' clause is included in the new issue terms.

Despite a 12.7% decline from 2005 to 2006 in GM light truck  
sales, American Axle 2006 revenue was off 5.8% from US$3.4  
billion to US$3.2 billion.  The offsets to the decline in GM's  
truck sales include American Axle's business with customers  
other than GM and higher content on the new GM SUVs and large  
pickups.  However, lower volumes and higher launch costs brought  
adjusted operating income down from US$105 million last year to  
US$52 million for 2006.  Free cash flow was a use of US$132  
million versus a use of US$56 million a year ago primarily due  
to the special attrition program payments but also higher than  
normal capital expenditure related to the launch of the new GM  
products.  To fund operations, the Special Attrition Program,  
other attrition programs and US$37 million in lease buyouts, the  
company's total debt rose to US$672 million in 2006 from US$489  
million last year.  Liquidity at the end of 2006 consisted of  
US$14 million in cash and marketable securities and US$476  
million in available revolver.  The company also has  
availability under uncommitted and foreign lines of credit  
totaling US$27 million and US$92 million, respectively.

American Axle has maintained its financial discipline through a  
period of heavy investment and in the midst of difficult  
industry conditions.  While many suppliers have chosen to take  
advantage of attractive secured financing arrangements, American  
Axle's funding has remained unsecured.  American Axle's credit  
metrics are healthy for the current rating, but American Axle 's  
credit profile is currently constrained by the company's  
dependence on GM, exposure to light trucks, and negative free  
cash flow over the past two years.  For 2006 American Axle's  
Total Debt to Operating EBITDA was 2.6x, Total Adjusted Debt to  
Operating EBITDA (adjusted for rent) was 2.9x, and FFO Adjusted  
Leverage was 3.4x.  

Headquartered in Detroit, MI, American Axle & Manufacturing --  
http://www.aam.com/-- manufactures, engineers, designs and    
validates driveline and drive train systems and related  
components and modules, chassis  systems and metal-formed  
products for light trucks, sport utility vehicles and passenger  
cars.  In addition to locations in the United States, AAM also  
has offices or facilities in Brazil, India, China, England,  
Germany, Japan, Mexico, Poland, Scotland and South Korea.


AMERICAN AXLE: Moody's Assigns Ba3 Rating on US$300-Mln Notes
-------------------------------------------------------------
Moody's Investors Service assigned a Ba3 rating (LGD-4, 56%) to
American Axle & Manufacturing Inc.'s new issue of US$300-million
of unsecured notes.

At the same time, the rating agency raised the company's
Speculative Grade Liquidity rating to SGL-1 and affirmed the
company's existing Corporate Family Rating of Ba3 and negative
outlook.  

Although the company's leverage measurements will initially
increase as a result of the new debt, its margins, cash flows
and coverage ratios should improve during 2007 as a result of
restructuring initiatives and employee buy-out programs
initiated during 2006.  The company's liquidity profile will be
strengthened from the combination of retention of a portion of
the proceeds as corporate cash, increased availability under its
bank revolving credit facility, and free cash flow generation.
The result of improved liquidity and expected trends in key
metrics help maintain the company's position in the Ba3 rating
category despite the modest initial increase in debt levels.  
The negative outlook recognizes the considerable near-term
uncertainty posed by the September 2007 expiration of the Big-3
UAW contract and the possibility of any related strikes or work
actions.  In addition, due to its significant supply contracts
relating to General Motors' T900 trucks and SUVs, American Axle
remains vulnerable to further shifts in consumer preference away
from these segments.

"American Axle's credit metrics could improve by late 2007 and
into 2008 as the benefits of its restructuring initiatives begin
to take hold" Edwin Wiest, vice president with Moody's said.
"However, the company and the entire automotive supplier sector
will face considerable near-term uncertainty until the Big-3 UAW
contract negotiations are finalized." Mr. Wiest went on to say
that, "Given this uncertainty, the company's effort to
strengthen is liquidity position is constructive."

American Axle will use a portion of the proceeds from the issue
to reduce outstandings under its bank revolving credit facility
and money market borrowings, which collectively amounted to
US$134 million at the end of December 2006.  The balance will be
retained as cash.  On a pro forma basis for year end 2006,
debt/EBITDA on a trailing basis would increase from roughly 3
times to 3.5 times.  Following its Special Attrition Program and
other restructuring actions in the fourth quarter of 2006, the
company is expected to achieve significant savings in its cost
structure.  This should facilitate higher EBITDA generation,
and, along with lower capital expenditures, produce positive
free cash flow over the intermediate period.  In turn, coverage
and leverage metrics should exhibit positive trends and help
position the company in the Ba3 rating category.

Nonetheless, American Axle remains vulnerable to a challenging
industry environment, faces ongoing correlation of its results
with GM's production of light trucks, and continues with its
revenues concentrated in North America.  Those issues along with
uncertainties on the ultimate application of higher cash
balances warrant maintaining a negative outlook until OEM labor
contract issues are resolved and final consumer demand for
vehicles based on the GM T900 in a higher fuel cost environment
is confirmed beyond an introductory period.

The Speculative Grade Liquidity rating of SGL-1 represents
excellent liquidity over the coming twelve months.  This
develops from the increase in internal resources from the
retention of a portion of the note proceeds, minimal, if any,
near term debt maturities, and expectations of free cash flow of
at least US$100 million in 2007.  External sources will
effectively increase as a result of the repayment of revolving
credit borrowings.  The company should have ample room under its
principal financial covenants, which measure debt net of cash
and exclude certain non-recurring charges from the measurement
of EBITDA and their related impact on deemed net worth.  All of
the company's bank obligations and notes are currently
unsecured, which establishes some flexibility to generate
alternative liquidity, if needed, subject to lien baskets and
sale/leaseback limitations in their respective indentures.

The notes will be issued under the company's existing shelf
registration.  However, the indenture will include a change in
control provision.  As with American Axle's existing bank debt
and unsecured notes, the issue will be guaranteed by American
Axle's holding company parent.  Given the unsecured nature of
the debt claims in the company's capital structure, recovery
rates in Moody's Loss Given Default assessment have not
materially changed from earlier measurement dates and are LGD-4,
56 %.

Ratings assigned:

   * American Axle & Manufacturing, Inc.

     -- US$300 million of guaranteed senior unsecured notes due
        2017, Ba3 (LGD-4, 56%)

Ratings changed:

   * American Axle & Manufacturing, Inc.

     -- Speculative Grade Liquidity rating to SGL-1 from SGL-2

Loss Given Default Assessments revised:

   * American Axle & Manufacturing, Inc. and American Axle &
     Manufacturing Holdings, Inc.

     -- Senior unsecured term loan and Senior Unsecured notes to
        LGD-4, 56% from LGD-4, 57%

Ratings affirmed:

   * American Axle & Manufacturing Holdings, Inc.

     -- Corporate Family Rating, Ba3
     -- Senior Unsecured Convertible Notes, Ba3

   * American Axle & Manufacturing, Inc.

     -- Senior Unsecured Term Loan, Ba3
     -- Senior Unsecured Notes, Ba3

American Axle's revolving credit facility is not rated.  The
last rating action was on Dec. 8, 2006, at which time all of the
company's ratings were confirmed after being placed under review
for downgrade on Oct. 5, 2006.

American Axle & Manufacturing, Inc., headquartered in Detroit,
MI, is a world leader in the manufacture, design, engineering
and validation of driveline systems and related components and
modules, chassis systems, and metal-formed products for light
truck, SUV's and passenger cars.  The company has manufacturing
locations in the USA, Mexico, the United Kingdom, and Brazil and
has recently opened new plants in Poland and China.  The company
reported revenues of US$3.2 billion in 2006.


CORPORACION GEO: Posts Financial Results for Fourth Quarter 2006
----------------------------------------------------------------
Corporacion Geo, S.A. de C.V., disclosed its financial results
for the fourth quarter of 2006.  Growth rates in all lines of
the income statement according to estimates, an efficient
accounts receivables to sales ratio and an important increase on
the return on equity indicator, and a solid financial structure
combined with positive free cash flow generation are the key
points to notice.

Luis Orvananos, Chairman of the Board of Directors of Geo,
commented, "With the results obtained in the fourth quarter of
2006, Geo proves that it is on the right track.  We feel very
proud for having achieved another quarter with positive results
and a year in which the company's structure was strengthened
while still maintaining our goals of continuous and profitable
growth for the future years, preparing ourselves to take full
advantage of the market's opportunities."

For the 22nd consecutive quarter, the fourth quarter 2006
operating results observed solid increases in all the lines of
the P&L and a more solid Balance Sheet.  Units sold grew 11.7%,
totaling 14,057 homes sold during the quarter, while Revenues
grew 18.6% year-over-year, reaching MXN3.9 billion.  In
addition, Gross Profit increased by 19.9% with an expansion of
0.3 percentage points on the Gross Margin that ended at 28.4%.
Operating Profit presented an increase of 22.4% with an
Operating Margin of 19.53%.

Moreover, EBITDA showed an increase of 20.0% against the fourth
quarter 2005 with a margin of 24.6% for this period, an increase
compared to 24.3% in the fourth quarter 2005.  When comparing
year-over-year amounts, Net Profit grew by 27.9% totaling
US$602.7 million, versus US$471.0 million in the fourth quarter
2005, with a Net Margin of 15.2% in the fourth quarter 2006.

Regarding the Financial Structure, quarterly Free Cash Flow
generation in fourth quarter 2006 totaled MXN793.9 million, an
increase of 25.5% compared to US$632.5 million in the same
quarter of last year.  Accumulated Free Cash Flow generation
presented a decrease of MXN207.8 million over last year, having
passed from US$74.3 million in 2005 to US$-133.5 million in
December of this year.

With the intention of obtaining the greatest fiscal benefits
possible, Geo increased its land bank reserve during the year,
this being the main reason why the level of Inventories
presented an increase of US$653.9 million compared to December
2005.

As a result of the implementation of strategies to improve the
company's management of Working Capital, the Accounts Receivable
to Sales ratio reached a level of 36.84% versus the 36.09% of
the fourth quarter of 2005.  This accounts receivable to sales
level was also a result of the commercial strategy of addressing
the sales to the products with the fastest collection.

In the same manner, total Financial Liabilities presented an
increase of 1.3% equivalent to MXN48.6 million compared to
fourth quarter 2005.  The level of Cash and Cash Equivalents
showed a decrease of -0.4% when compared to the fourth quarter
of 2005, from MXN2.8 billion to MXN2.8 billion.  This decrease
was mainly caused by the company's infrastructure and
urbanization investments, made for warranting the same operating
growth rhythms of Geo.

Furthermore, Net Debt presented an increase of 6.5% standing at
MXN979.1 million versus MXN919.1 million in the fourth quarter
2005, and, quarter by quarter, presented an important decrease
of -42.8% moving from MXN1.7 million in third quarter 2006 to
MXN979.1 million this quarter.  Net Debt to Capitalization ratio
observed a decrease, moving from 14.8% in fourth quarter 2005 to
11.9% in fourth quarter 2006.  Finally, the debt risk profile
significantly improved during the quarter, especially
considering the facts that US dollar debt exposure is less than
3.2% of total financial liabilities, that the composition of the
debt is 48.0% short term and 52.0% long term, and that Geo was
able to reach a leverage level without deferred taxes of 0.63
times versus the 0.87 times showed in fourth quarter 2005.

It's important to mention the notable increase on the Return on
Equity indicator moving from 27.8% in fourth quarter 2005 to
28.4% in the fourth quarter 2006, an increase of 0.6 percentage
points, maintaining the leadership in the industry.

Finally, Jorge Perez, Investor Relations Director, added, "We
think that the consistency and predictability of Geo's results
achieved in the last quarters, combined with the growth strategy
of the Company and the excellent panorama that the Industry
shows, should translate into a great 2007 for Geo's share
performance."

                 Fourth Quarter 2006 Results

Operating results in the fourth quarter 2006 were as follows:
Homes sold during the fourth quarter 2006 reached 14,057 units,
a solid increase of 11.7% compared to 12,581 homes sold in the
same period last year.  Regarding the product mix 1,968 houses
out of the 14,057 homes sold by Geo during the fourth quarter
2006 were registered in the Middle Income and Residential
Housing Segment, equivalent to 14.0% of the total sales.

Revenues for the fourth quarter 2006 presented an increase of
18.6% compared to the same period of 2005 reaching MXN3.9
billion. Gross Profit totaled MXN1.1 billion, an increase of
19.9% compared to the same period of last year.  Gross Margin
showed an increase of 0.3 percentage points reaching 28.4% in
fourth quarter 2006.

SG&A increased 14.7% in real terms, equivalent to US$44.7
million over the comparable figure for fourth quarter 2005, for
a total of US$349.7 million.  Operating Profit during the fourth
quarter presented an increase of 22.4% compared to the fourth
quarter 2005, reaching US$773.8 million, while Operating Margin
presented a increase of 0.6 percentage points moving from 18.94%
in the fourth quarter 2005 to 19.53%.  In addition, fourth
quarter 2006 EBITDA presented an increase of 20.0% compared to
the same period last year totaling US$974.8 million, while
EBITDA Margin presented an increase over the same period of last
year closing at 24.6% up from 24.3%.

It should be noted that in accordance with US GAAP and
international standards, GEO capitalizes the cost of financing
related to production, rather than applying it to the integral
cost of financing.  Under Mexican GAAP and for peer comparison
purposes, Gross Margin for the fourth quarter of 2006 would have
been 32.0%, while Operating Margin would have been 23.2%

Integral Cost of Financing during the fourth quarter showed an
increase of 61.7% in comparison to the same period last year,
while Net Profit observed an increase of 27.9%, moving from
US$471.0 million in fourth quarter 2005 to US$602.7 million in
this quarter with a Net Margin of 15.2%.  In the fourth quarter
of 2006, earnings per share showed an important increase of
27.4%, moving from US$0.88 in fourth quarter 2005 to US$1.12
this quarter.

            Accumulated January - December 2006 Results

Operating results for the period Jan-Dec of 2006 were: Homes
sold reached 41,872 units an increase of 12.1% compared to
37,343 homes sold in the same period last year.  From the 41,872
units sold by GEO during the fourth quarter 2006, 6,077 homes
were in the middle income and residential housing segment, the
equivalent to 14.5% of total sales.

Revenues in the period Jan-Dec of 2006 totaled MXN12.5 billion,
an increase of 19.4% compared to the previous year.  Gross
Profit presented an increase of 20.0% totaling US$3,439.4
million, while Gross Margin presented an increase of 0.1
percentage points, moving from 27.3% to 27.4% in 2006.

"Even after applying the International Financial Information
Standard 2, Share-Based Payments, issued by the International
Accounting Standards Board, that was effective on Jan. 1, 2006,
which states that employees' stock bonuses will be reflected in
the SG&A as they are released, the Company succeeded in
decreasing the incidence of SG&A expenses relative to revenues
for the period January-December from 9.8% in 2005 to 9.7% this
year, showing a continuity in the Savings Plan Strategy and the
efficiency of the Expenses Control Policy", added Victor Segura,
CFO.

SG&A in the period Jan-Dec of 2006 totaled MXN1.2 billion an
increase of 18.3% compared to last year, reaching MXN1.2
billion.

Operating Profit presented an increase of 21.0% compared to the
same period of last year, while Operating Margin presented an
increase of 0.2 percentage points passing from 17.5% to 17.7% in
2006.  In addition, in the period Jan-Dec 2006 EBITDA presented
an increase of 19.3% compared to the same period last year
totaling US$3 billion, while EBITDA Margin maintained at the
same level than last year ending at 24.2% in 2006.

Integral Cost of Financing showed an increase of 20.3% in
comparison to the same period last year.  Finally, Net Profit
observed an increase of 26.2%, moving from US$1.1 billion in
Jan-Dec of 2005 to US$1.4 billion in 2006, while Net Margin
presented an increase of 0.6 percentage points in comparison to
the same period of 2005 moving from 11.3% to 11.9%.  Earnings
per share passed from US$2.22 in 2005 to US$2.79 in 2006, an
increase of 25.4%.

Moreover, the company's land bank of homes to be developed and
collected, reached a total of 297,536 units as a consequence of
the combination of Geo's own land, options agreements, the
outsourcing scheme and the joint venture with Prudential Real
Estate Investors and other funds.  Geo controls enough land bank
for 4.5 to 5 years of production considering a constant units
growth rate, with a low financial cost and limited ownership
risk.

Headquartered in Mexico, Corporacion Geo, S.A. de C.V. --
http://www.casasgeo.comor http://www.g-homes.com.mx--  
specializes in the construction of affordable low-income
housing.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Aug. 14, 2006, Standard & Poor's Ratings Services assigned these
rating to Corporacion Geo S.A. de C.V.:

   -- Long-term foreign issuer rating: BB; and
   -- Long-term local issuer rating: BB.

The ratings on Geo reflect the company's:

   -- position as the largest homebuilder in Mexico;

   -- nationwide presence;

   -- increased participation in the economic, middle income,
      and residential housing segments; and

   -- adequate liquidity.


CLEAR CHANNEL: Fourth Quarter 2006 Revenues Up to US$1.94 Bil.
--------------------------------------------------------------
Clear Channel Communications Inc.'s revenues for the fourth
quarter ended Dec. 31, 2006, increased 11% to US$1.94 billion,
from US$1.75 billion for the fourth quarter of 2005.  Included
in the company's revenue is a US$32.4 million increase due to
movements in foreign exchange; strictly excluding the effects of
the movements in foreign exchange, revenue growth would have
been 9%.

Clear Channel's expenses increased 8% to US$1.2 billion during
the fourth quarter of 2006 compared to 2005.  Included in the
company's 2006 expenses is approximately US$8.7 million of non-
cash compensation expense, a US$27.7 million increase due to
movements in foreign exchange and a US$9.8 million reduction as
a result of a favorable settlement of a legal proceeding.

Clear Channel's income before discontinued operations increased
15% to US$210.1 million, as compared to US$182.7 million for the
same period in 2005.

                     Full Year 2006 Results

For the full year, the company reported revenues of US$7.07
billion, an increase of 7% when compared to revenues of US$6.58
billion for the same period in 2005.  Included in the company's
revenue is a US$17.4 million increase due to movements in
foreign exchange.

The company's expenses increased 6% to US$4.6 billion during the
year compared to 2005.  Included in the company's expenses is
approximately US$35.2 million of non-cash compensation expense
and a US$14.6 million increase due to movements in foreign
exchange.

During 2005, the company restructured its business in France and
recorded approximately US$26.6 million in restructuring charges.
The company's income before discontinued operations was US$688.8
million.  This compares to income before discontinued operations
of US$633.6 million in 2005.

The company's full year 2006 net income included approximately
US$35.7 million of pre-tax gains primarily on the divestitures
of radio assets and the swap of certain outdoor assets.  
Excluding these gains, Clear Channel's 2006 income before
discontinued operations would have been US$667.7 million.

                      Fourth Quarter Events

On Nov. 16, 2006, the company agreed to be acquired by a group
of private equity funds led by Bain Capital Partners LLC and
Thomas H. Lee Partners L.P.  The transaction is subject to
shareholder approval, antitrust clearances, FCC approval and
other customary closing conditions.  The company filed its
definitive proxy statement with the U.S. Securities and
Exchange Commission on Jan. 29, and the shareholder meeting will
be held March 21.

Also on Nov. 16, 2006, the company announced plans to sell 448
of its 1,176 radio stations, all located outside the top 100
U.S. media markets, as well as all of its television stations.  
The sale of these assets is not contingent on the closing of the
Bain Capital deal.  Definitive asset purchase agreements were
signed for the sale of 39 radio stations as of Dec. 31, 2006.  
The stations, along with 5 stations sold in the fourth quarter
of 2006, were classified as assets held for sale in the
consolidated balance sheet and as discontinued operations in the
consolidated statements of operations.

The company's 2006 revenue increased from foreign exchange
movements of approximately US$32.4 million for the fourth
quarter and US$17.4 million for the full year as compared to the
same period of 2005.

                 Return of Capital to Shareholders

During 2006, the company repurchased 46.7 million shares of its
common stock for approximately US$1.4 billion.  The company has
repurchased a total of 130.9 million shares for approximately
US$4.3 billion under its share repurchase programs since March
2004.

As a result of the company's proposed merger transaction
announced on Nov. 16, 2006, the company will not be hosting a
teleconference or web cast to discuss results.

                 Liquidity and Financial Position

For the year ended Dec. 31, 2006, cash flow from operating
activities was US$1.8 billion, cash flow used by investing
activities was US$641.4 million, cash flow used by financing
activities was US$1.2 billion, and net cash provided by
discontinued operations was US$9.7 million for a net increase in
cash of US$31.2 million.

As of Dec. 31, 2006, 69% of the company's debt bears interest at
fixed rates while 31% of the company's debt bears interest at
floating rates based upon LIBOR.  The company's weighted average
cost of debt at Dec. 31, 2006, was 6.1%.

On Feb. 1, the company redeemed its 3.125% Senior Notes at their
maturity for US$250-million plus accrued interest with proceeds
from its bank credit facility.

As of Feb. 22, the company had approximately US$571.8 million
available on its bank credit facility.  The company may utilize
existing capacity under its bank facility and other available
funds for general working capital purposes including funding
capital expenditures, acquisitions, stock repurchases and the
refinancing of certain public debt securities.  Capacity
under the facility can also be used to support commercial paper
programs.  Redemptions or repurchases of securities will occur
through open market purchases, privately negotiated
transactions, or other means.

                About Clear Channel Communications

Based in San Antonio, Texas, Clear Channel Communications Inc. -
- http://www.clearchannel.com/-- (NYSE:CCU) is a global leader  
in the out-of-home advertising industry with radio and
television stations and outdoor displays.  Aside from the U.S.,
the company operates in 11 countries -- Norway, Denmark, the
United Kingdom, Singapore, China, the Czech Republic,
Switzerland, the Netherlands, Australia, Mexico and New Zealand.

                          *     *     *

Clear Channel's long-term local and foreign issuer credits carry
Standard & Poor's BB+ rating.

In addition, the company's senior unsecured debt and long-term
issuer default ratings were placed by Fitch at BB- on
Nov. 16, 2006.


GRUPO IUSACELL: Reports MXN3.89 Billion Net Profits in 2006
-----------------------------------------------------------
Grupo Iusacell, S.A. de C.V., earned MXN3.89 billion net profits
in 2006, compared to MXN734 million losses in 2005, parent
company Grupo Iusacell said in its earnings statement.

Business News Americas relates that Iusacell's net revenues for
2006 increased 22% to MXN7.75 billion, compared to MXN6.37
billion in 2005, mainly due to a growth in postpaid client
revenues.

According to BNamericas, Iusacell's Ebitda rose 28% to MXN1.39
billion in 2006, compared to MXN1.08 billion in 2005.  The
Ebitda margin was 18%.

The report says that Iusacell's fourth quarter 2006 net profits
increased to MXN1.02 billion, compared to MXN149 million in the
same period in 2005.  Net revenues rose 13% to MXN2.05 billion,
from MXN1.81 billion.

BNamericas underscores that Iusacell's capital expenditure was
US$18 million in the fourth quarter of 2006, mainly on
purchasing mobile equipment for coverage expansion, third
generation capacity and Evolution-Data Optimized services.  
Iusacell's capex was US$68 million in 2006.

Iusacell had 2.1 million clients as of Dec. 31, 2006, BNamericas
states.

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

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

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

The involuntary petition in the United States was dismissed in
December 2006.


TANK SPORTS: Operates as Usual; Expects to File Financials Soon
---------------------------------------------------------------
Tank Sports Inc. said that the company led by the seasoned
entrepreneurs is operating as usual to its growth targets.  
Since its startup 6 years ago, the company has had a successful
track record of the execution of its business plan, including
most recently:

   -- going public Nov. 1, 2006;
   -- 1-to-4 forward stock splitting;
   -- acquisition of Redcat Motors;
   -- the disclosure of the associated entities; and
   -- forming strategic partnerships with others.

As of today, the company has been able to grow its dealership to
more than 530, through its own efforts and acquisition. The
company's global fast growth strategy is being strengthened by
its R & D, engineering and production resources.

The company is expected to file its combined financials with the
acquisition of Redcat Motors to the SEC soon, and the CEO will
soon have a discussion of the company's year plan and financial
estimates for 2007.

                      About Tank Sports

Headquartered in El Monte, California, Tank Sports, Inc.,
(OTCBB: TNSP) -- http://www.tank-sports.com/-- develops,  
engineers, and markets high-performance on-road motorcycles &
scooters, off-road all-terrain vehicles (ATVs), dirt bikes and
Go Karts through OEMs in China.  The company's motorcycles and
ATVs products are manufactured in China and Mexico.

                      Going Concern Doubt

Kabani & Company, Inc., in Los Angeles, California, raised
substantial doubt about Tank Sports, Inc.'s ability to continue
as a going concern after auditing the company's financial
statements for the year ended Feb. 28, 2006.  The auditor
pointed to the company's net loss and accumulated deficit.


VITRO SAB: Reports 7.7% Year-Over-Year Increased in Sales
---------------------------------------------------------
Vitro S.A.B. de C.V. announced its 2006 fourth quarter unaudited
financial results.  Year-over-year consolidated sales increased
7.7% and EBITDA rose 3.6%.  The consolidated EBITDA margin was
down 60 basis points to 15.5% for the quarter.  Excluding the
divestiture of Quimica M in March 2006 and the acquisition of
Vidrios Panamenos in April 2006, consolidated sales rose 7.5%
and consolidated EBITDA increased 4.3% year over year.

Alvaro Rodriguez, Chief Financial Officer, commented "We closed
2006 with another very solid quarter.  On a comparable basis, we
achieved the highest consolidated EBITDA for a fourth quarter
since fourth quarter 1999."

"This has been an important year for Vitro.  Consolidated EBITDA
for 2006, on a comparable basis, is the highest since 2000.  
Glass containers reached another consecutive record year, with
comparable sales and EBITDA up 15% and 23%, respectively.  Flat
Glass performance during the year was also strong.  On a
comparable basis, sales rose 3.7% and EBITDA, excluding the
effect of the inventory reduction, was up 20%."

"We are also pleased to report that we have delivered on the
financial plan established at the end of 2005, which led to the
financial transformation of Vitro in 2006.  This last quarter we
completed a successful rights offering and the sale of land
occupied by Vimex for a total of US$150 million.  As a result,
during 2006 we closed transactions to reduce debt for a total of
US$332 million, exceeding our US$300 million target."

"Today Vitro is a much stronger company.  We finalized the sale
of non-core assets, reduced gross debt by US$242 million year
over year to an all time low of US$1,141 million achieving a net
debt to EBITDA ratio of 2.7 times; brought down selling and
administrative expenses by 100 basis points to 19.9% during
2006."

"In January 2007 we undertook a major debt refinancing and
issued a total of US$1.0 billion in senior unsecured notes,
which were more than seven times oversubscribed.  This was the
largest high yield-rated offering by a non- government owned
corporate in Emerging Markets to date.  Through this offering we
have transformed the company's capital structure by simplifying
it, concentrating debt in a single entity and eliminating
structural subordination.  In addition, we significantly reduced
the cost of debt and extended debt maturities to an average life
of debt of nearly 8 years."

Mr. Rodriguez closed, "The last year proved to be very
productive as we made major progress with the EBITDA turnaround
that started in 2003, while constantly refinancing our debt.  
Now that the financial plan is complete and Vitro has enhanced
liquidity and increased financial flexibility, it's time to
focus our energy in continuing to build a strong platform for
the new Vitro story, leveraging our strengths, focusing on
organic growth and building on our unique position in niche
markets and value added products."

Headquartered in Monterrey, Mexico, Vitro, S.A.B. de C.V.,
through its two subsidiaries, Vitro Envases Norteamerica, SA de
C.V. and Vimexico, S.A. de C.V., is a leading global glass
producer, serving the construction and automotive glass markets
and glass containers needs of the food, beverage, wine, liquor,
cosmetics and pharmaceutical industries.  

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Jan. 18, 2007, Moody's Investors Service assigned a global
foreign currency rating of B2 to Vitro, SAB de CV's proposed
US$750 million senior unsecured guaranteed notes due 2012 and
2017, which are being offered in the context of a major
financial restructuring initiative the company announced on
Jan. 11, 2007.

This rating was assigned:

   Vitro, SAB de CV:

   -- Proposed US$750 million senior unsecured guaranteed notes
      due 2012 and 2017, at 2.

These ratings were affirmed:

Vitro, SAB de CV:

  -- Corporate Family at B2;

  -- US$225 million 11.75% senior unsecured notes due 2013, at
     Caa1, with the possibility of upgrade to B2 upon
     execution of the proposed guarantee structure consistent
     with the proposed notes;

  -- US$152M 11.375% senior unsecured notes due 2007, at Caa1,
     and withdrawn upon successful conclusion of the Tender
     Offer.

The ratings outlook changed to stable from negative.

Vitro Envases Norteamerica, SA de CV:

   -- Corporate family, at B2, and withdrawn upon conclusion
      joy of the proposed transactions; and

   -- US$250 million 10.75% senior secured notes due 2011,
      at B2, and withdrawn upon successful conclusion of
      the Tender Offer.

The rating outlook remains stable until such time that the
ratings are withdrawn.

As reported in the Troubled Company Reporter-Latin America on
Feb. 5, 2007, Standard & Poor' Ratings Services raised its long-
term senior  unsecured credit rating on Mexico-based glass
manufacturer Vitro S.A.B. de C.V.'s (Vitro; B/Stable/--) notes
due 2013 to 'B' from 'CCC+'.




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


CHIQUITA BRANDS: Sets Shareholders Annual Meeting for May 24
------------------------------------------------------------
Chiquita Brands International Inc. will hold its Annual Meeting
of Shareholders on May 24, 2007, at the Hilton Cincinnati
Netherland Plaza.  The record date for determining shareholders
entitled to vote at the meeting will be April 6, 2007.  The
company will mail to shareholders of record in mid-April a
notice of the meeting and related proxy materials.

                    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 US$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 A R A G U A Y
===============


* PARAGUAY: Monica Perez Resigns as Central Bank Head
-----------------------------------------------------
Monica Perez has resigned as the Paraguayan central bank's
president due to conflict with the government's economic team,
Business News Americas reports, citing a central bank
spokesperson.

Paraguayan President Nicanor Duarte will propose that German
Rojas, state-owned bank Banco Nacional de Fomento's head, take
the place of Ms. Perez, the spokesperson told BNamericas.

                       *    *    *

Moody's assigned these ratings on Paraguay:

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

                        *    *    *

Standard & Poor's assigned these ratings on Paraguay:

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




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BIO-RAD LABORATORIES: Earns US$16.6 Million in 2006 Fourth Qtr.
---------------------------------------------------------------
Bio-Rad Laboratories Inc. reported that for fourth quarter ended
Dec. 31, 2006, revenues were US$343.1 million, up 11.6% compared
to US$307.3 million reported for the fourth quarter of 2005.  On
a currency-neutral basis, revenues increased 7.6% compared to
the same period last year.  This growth was primarily organic
across product areas in both the Life Science and Clinical
Diagnostics segments complemented by two acquisitions completed
during the fourth quarter.

Income from continuing operations for the fourth quarter was
US$16.6 million compared to US$13.5 million during the fourth
quarter last year.  Fourth-quarter gross margin from continuing
operations was 54.1% compared to 52.9% in the same period last
year.

For the full year, Company sales grew by 7.9% to US$1,273.9
million compared to US$1,181.0 million in 2005.  Normalizing for
the impact of currency effects, growth was 7.7%.  Favorable
impacts on year-to-date figures for 2006 include a Russian
tender won in the first quarter for laboratory equipment as well
as one-time additional revenue of US$11.7 million resulting from
a licensing settlement agreement reached with bioMerieux SA.  
Full-year gross margin from continuing operations was 55.9%, up
from last year's figure of 54.7%.

Year-over-year income from continuing operations grew 33.1% to
US$103.3 million, from US$77.6 million, in 2005.

"2006 was a year of continued progress on many fronts," said
Norman Schwartz, Bio-Rad president and chief executive officer.
"The year brought increased organic growth within our core
businesses, expansion of our product lines through new product
introductions and strategic acquisitions, and infrastructure
improvements. As a result, Bio-Rad is well-positioned in key
market areas and has a strengthened foundation for the long
term."

                        Life Science

The Life Science segment net sales for the quarter were
US$159.0 million, up 13.0% compared to the fourth quarter of
last year.  On a currency-neutral basis, segment sales increased
by 8.8%.  Full-year reported revenues were US$575.6 million for
the segment, up 4.7% over the prior year, or 4.6% on a currency-
neutral basis. Performance in the Life Science segment was
boosted by a number of factors including significant growth in
protein expression analysis, process chromatography, and
amplification reagents.  In addition, the segment benefited from
the purchase of Ciphergen Biosystems, Inc.'s life science
business including worldwide technology rights to Ciphergen's
Surface Enhanced Laser Desorption/Ionization (SELDI) technology
and ProteinChip(R) System.  These results were somewhat tempered
by reduced BSE revenue and slowed life science markets in the
U.S. and Japan.

                    Clinical Diagnostics

The Clinical Diagnostics segment reported net sales of US$180.1
million for the quarter, up 10.6% compared to the prior-year
quarter, or 6.5% excluding currency effects.  Full-year segment
sales were US$684.9 million, a 10.8% increase compared to 2005
results, or 10.4% excluding currency effects.  These results
were largely due to continued growth across all product lines,
most notably blood virus products as well as MRSASelect(TM)
chromogenic media, which detects Methicillin-resistant
Staphylococcus aureus. Sales of quality controls product lines
were also up significantly during the quarter.  During the
quarter, the segment completed the purchase of Blackhawk
BioSystems Inc., a manufacturer of infectious disease quality
control products.

                    2006 Full Year Review

   * Full-year Company sales grew by 7.9% to US$1,273.9 million.

   * Year-over-year income from continuing operations grew by
     33.1% to US$103.3 million from US$77.6 million in 2005.

   * In February of 2006, the Company settled litigation and
     resumed U.S. sales of certain thermal cycling products.

   * In April, the Company announced that it had signed a
     multi-year agreement in which Premier, one of the largest
     group purchasing organizations in the U.S., had agreed to
     a 3-year sole-source contract with Bio-Rad covering
     diabetes monitoring instrumentation and products.

   * As a result of a settlement reached with bioMerieux SA, in
     the second quarter Bio-Rad reported additional revenue of
     US$11.7 million in royalties and licensing fees.

   * Also during the second quarter, the segment launched a
     number of products including Platelia(R) Dengue NS1 Ag
     Assay for dengue screening; a diagnostic test for celiac
     disease, an autoimmune disorder; and a new Rack Loader for
     use in conjunction with the D-10(TM) Hemoglobin Testing
     System, which expanded the sample handling capacity of the
     system to 50 samples per run.

   * In September, Bio-Rad announced the availability of the
     ProteOn(TM) XPR36 Protein Interaction Array System. In
     addition, the Company announced that it had completed the
     purchase of the diagnostics business of Provalis plc, a
     provider of point of care diagnostic products for chronic
     disease management of diabetes and osteoporosis.

   * In October, Bio-Rad announced that it had acquired
     Blackhawk BioSystems, Inc., a manufacturer of quality
     control products used in laboratories that perform
     infectious disease testing procedures.

   * In November, Bio-Rad completed the purchase of Ciphergen
     Biosystems, Inc.'s life science business including
     worldwide technology rights to Ciphergen's Surface
     Enhanced Laser Desorption/Ionization (SELDI) technology
     and ProteinChip(R) System.
    
Management held a conference call on February 22, 2007.  A
replay of the call will be available at 888-286-8010 (in the
U.S.), or 617-801-6888 (international), access number 21671774,
for seven days following the call and the webcast can be
accessed at http://www.bio-rad.com/for 30 days.  

                        About Bio-Rad

Bio-Rad Laboratories, Inc. (AMEX: BIO) (AMEX: BIOb)  --
http://www.bio-rad.com/-- is a multinational manufacturer and  
distributor of life science research products and clinical
diagnostics.  Based in Hercules, California, Bio-Rad serves more
than 70,000 research and industry customers worldwide through a
network of more than 30 wholly owned subsidiary offices in
Argentina, Brazil and Peru, among others.

                        *    *    *

As reported on the Troubled Company Reporter on June 2, 2006,
Bio-Rad Laboratories, Inc.'s 7-1/2% Senior Subordinated Notes
due 2013 carry Moody's Investors Service's Ba3 rating and
Standard & Poor's BB- rating.


* PERU: Expects 15 Million Total Exports of Mango in March
----------------------------------------------------------
Peru is expected to export a total of 15 million boxes of mango
in the 2006-2007 period, which will end in March, Fresh Plaza
reports.

Fresh Plaza relates that Peru exported about 17 million boxes of
mango in the 2005-2006 period.

Good international prices will lessen the possible losses by the
producers due to reduced exports, Paul Barclay, the President of
the Association of Producers and Exporters of Mango from Peru
told Fresh Plaza.

                        *    *    *

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


* PERU: Petroperu Inks Accord with Andean Development Corp.
-----------------------------------------------------------
Peruvian state-run oil firm Petroperu said in a statement that
it has signed an agreement with the Andean Development
Corporation for consulting related to financing the prospective
US$1-billion Talara plant modernization project.

According to Petroperu's statement, the accord entails joint
work on two evaluation phases:

          -- the first phase involves:

             * the assessment of financial viability,
             * study of the market and legal framework,
             * developing a model to project cash flows, and
             * proposing a financing structure; and

          -- the second phase relates to assistance in
             implementing the selected financing structure.

Business News Americas underscores that the project aims to:

          -- boost the plant's capacity to 90,000 barrels per
             day from 62,000 barrels per day,
    
          -- optimize fuel quality at the existing units, and

          -- construct new ones.

Petroperu said in a statement that it will complete the bidding
rules soon for a project feasibility study.

"This is a project of great importance for Peru in terms of
improving the commercial balance in that it will substitute
imports, permit the production of fuels at competitive prices,
generate jobs in the construction and operations phases of the
new refinery, as well as decrease contamination," Andean
Development Executive President Enrique Garcia told BNamericas.

                        *     *     *

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




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


ALLIED WASTE: Commences US$750 Mil. 8.5% Senior Notes Offering
--------------------------------------------------------------
Allied Waste Industries Inc.'s wholly-owned subsidiary, Allied
Waste North America Inc., is commencing a tender offer to
purchase any and all of its US$750 million in aggregate
principal amount of outstanding 8.5% Senior Notes due 2008
through a cash tender offer with the proceeds from a concurrent
public offering of US$750 million in aggregate principal amount
of Senior Notes due 2017 under Allied's existing shelf
registration statement.

UBS Securities LLC, Citigroup Global Markets Inc., Credit Suisse
Securities (USA) LLC and J.P. Morgan Securities Inc. will be
acting as the joint book-running managers for the Notes
Offering.

Copies of the preliminary prospectus relating to the offering
may be obtained from:

         UBS Securities LLC,
         677 Washington Blvd.
         Stamford, CT 06901
         Tel: (203) 719-1556

The Tender Offer will expire at 11:59 p.m., New York City time,
on March 23, 2007.  Under the terms of the Tender Offer,
holders of the 2008 Notes who validly tender and do not validly
withdraw their 2008 Notes and consents prior to 5:00 p.m., New
York City time, on March 9, 2007, will receive the "total
consideration," which is equal to the tender consideration plus
an amount equal to US$12.50 per US$1,000 principal amount of
2008 Notes, or the "consent payment."  The "tender
consideration" is equal to:

   (i) the sum of the present values of the remaining scheduled
       payments of principal and interest on the 2008 Notes
       discounted to maturity on a semi-annual basis at the
       applicable treasury yield plus 50 basis points, minus

  (ii) accrued and unpaid interest to, but not including, the
       early settlement date (which will promptly follow the
       consent date), minus

(iii) the consent payment. Holders who validly tender their
       2008 Notes after the consent date and prior to the
       expiration date will only receive the tender
       consideration.

In both cases, holders whose 2008 Notes are purchased in the
Tender Offer will also be paid accrued and unpaid interest from
the most recent interest payment date on the 2008 Notes to, but
not including, the applicable settlement date.  It is expected
that the early settlement date will be March 12, 2007, and the
final settlement date will be March 26, 2007.

In connection with the Tender Offer, AWNA is soliciting the
consents of holders of the 2008 Notes to certain proposed
amendments to the indenture governing the 2008 Notes.  The
primary purpose of the Consent Solicitation and proposed
amendments is to eliminate substantially all of the restrictive
covenants and certain events of default and reduce the required
notice period contained in the optional redemption provision of
the indenture.

The Tender Offer is contingent upon the satisfaction of certain
conditions, including:

   (a) the Notes Offering having been consummated, including the
       raising of approximately US$750 million in gross proceeds
       by AWNA from the Notes Offering, and

   (b) the receipt of requisite consents in order to adopt the
       proposed amendments to the indenture governing the 2008
       Notes.  If any of the conditions are not satisfied, AWNA
       is not obligated to accept for payment, purchase or pay
       for, and may delay the acceptance for payment of, any
       tendered 2008 Notes, and may even terminate the Tender
       Offer.

Requests for documents related to the Tender Offer may be
directed to:

         D.F. King & Co., Inc.
         the Information Agent
         48 Wall Street, 22nd Floor
         New York, NY 10005
         Tel: (800) 848-2998

                 -- or --

              (212) 269-5550.

Citigroup Corporate and Investment Banking and UBS Investment
Bank will each act as Dealer Manager for the Tender Offer and
Solicitation Agent for the Consent Solicitation.  Questions
regarding the Tender Offer and Consent Solicitation may be
directed to:

         Citigroup Corporate and Investment Banking
         390 Greenwich Street, 4th Floor
         New York, NY 10013
         Tel: (800) 558-3745

                 -- or --

              (212) 723-6106

                 -- or --

         UBS Investment Bank,
         677 Washington Blvd
         Stamford, CT 06901
         Tel: (888) 722-9555 ext. 4210.

Allied Waste North America, Inc., a wholly owned operating
subsidiary of Allied Waste Industries, Inc., is based in
Phoenix, Arizona.  Allied Waste is a vertically integrated, non-
hazardous solid waste management company providing collection,
transfer, and recycling and disposal services for residential,
commercial and industrial customers.  As of Sept. 30, 2006, the
company operated a network of 299 collection companies, 161
transfer stations, 169 active landfills and 56 recycling
facilities in 37 states and Puerto Rico.  For the twelve months
ended Sept. 30, 2006, the company had revenues of approximately
US$6.0 billion.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Jan. 22, 2007, Moody's Investors Service changed the outlook of
Allied Waste Industries, Inc., to positive from stable and
affirmed the long-term debt ratings of Allied Waste and Allied
Waste North America, Inc., along with its wholly-owned
subsidiary, Browning-Ferris Industries, LLC

These ratings were affirmed:

   Allied Waste Industries, Inc.

   -- B2 Corporate Family Rating;

   -- B2 Probability of Default Rating;

   -- Caa1 (LGD5, 87%) rated US$230 million issue of 4.25%
      guaranteed senior subordinated convertible bonds due 2034;

   -- Caa1 (LGD6, 98%) rated US$600 million issue of 6.25%
      senior mandatory convertible preferred stock - conversion
      date of March 2008; and

   -- Speculative Grade Liquidity Rating is SGL-1.

The outlook for the ratings was changed to positive from stable.

   Allied Waste North America, Inc.

   -- Ba3 (LGD2, 30%) rated US$1.575 billion guaranteed senior
      secured revolving credit facility due 2010;

   -- Ba3 (LGD2, 30%) rated US$1.235 billion guaranteed senior
      secured term loan due 2012;

   -- Ba3 (LGD2, 30%) rated US$490 million guaranteed senior
      secured Tranche A Letter of Credit Facility due 2012;

   -- B2 (LGD4, 57%) rated US$750 million issue of 8.5%
      guaranteed senior secured notes due 2008;

   -- B2 (LGD4, 57%) rated US$595 million issue of 7.125%
      guaranteed senior secured notes due 2016;

   -- B2 (LGD4, 57%) rated US$350 million issue of 6.5%
      guaranteed senior secured notes due 2010;

   -- B2 (LGD4, 57%) rated US$400 million issue of 5.75%
      guaranteed senior secured notes due 2011;

   -- B2 (LGD4, 57%) rated US$275 million issue of 6.375%
      guaranteed senior secured notes due 2011;

   -- B2 (LGD4, 57%) rated US$251 million issue of 9.25%
      guaranteed senior secured notes due 2012;

   -- B2 (LGD4, 57%) rated US$450 million issue of 7.875%
      guaranteed senior secured notes due 2013;

   -- B2 (LGD4, 57%) rated US$425 million issue of 6.125%
      guaranteed senior secured notes due 2014;

   -- B2 (LGD4, 57%) rated US$600 million issue of 7.25%
      guaranteed senior secured notes due 2015;

   -- B3 (LGD4, 70%) rated US$400 million issue of 7.375%
      guaranteed senior unsecured notes due 2014;

   Browning-Ferris Industries, LLC - (assumed by Allied Waste
   North America, Inc.)

   -- B2 (LGD4, 57%) rated US$157 million issue of 6.375% senior
      secured notes due 2008;

   -- B2 (LGD4, 57%) rated US$96 million issue of 9.25% secured
      debentures due 2021;

   -- B2 (LGD4, 57%) rated US$294 million issue of 7.4% secured
      debentures due 2035;

   -- B3 (LGD4, 70%) rated US$280 million of industrial revenue
      bonds with various maturities.


ALLIED WASTE: Fitch Assigns B+/RR3 Rating on US$750MM New Notes
---------------------------------------------------------------
Fitch Ratings has assigned a rating of 'B+/RR3' on the US$750
million in new senior secured notes issued by Allied Waste North
America, Inc., a wholly owned subsidiary of Allied Waste
Industries, Inc.  The new notes mature in 2017 and carry a no
call provision for five years with a make-whole call provision
exercisable any time prior to the stated call dates.  Proceeds
from the notes will be used to retire Allied Waste North
America's US$750 million 8.5% senior secured notes due 2008.  
The new notes are guaranteed by Allied Waste Industries and
substantially all of Allied Waste Industries' subsidiaries.  
They are secured by a pledge of the stock of substantially all
of the subsidiaries of Browning-Ferris Industries, LLC and
certain of Allied Waste Industries' other wholly owned
subsidiaries, as well as a security interest in the assets of
Browning-Ferris, substantially all of its domestic subsidiaries
and certain of Allied Waste Industries' other wholly owned
subsidiaries.  The Issuer Default Rating for Allied Waste North
America is 'B' and the rating outlook is stable.

The ratings for Allied Waste Industries and its subsidiaries
reflect the waste company's solid market position, relatively
low industry demand volatility and the value of the company's
landfill assets, weighed against a relatively high debt load.  
Over the course of 2006, Allied Waste Industries gained traction
on its pricing initiatives, and, as a result, consolidated
internal revenue grew by 6.7% on volume growth of only 0.8%.  
The consolidated full-year operating margin, excluding losses
from divestitures and asset impairments, grew by 40 basis points
to 16.4% from 16.0%, and free cash flow (defined as operating
cash flow less capital expenditures and common dividends) rose
to US$235 million from US$2.2 million in 2005.  Although the
company has taken a firmer stance on pricing, its customer
retention rate has remained above 90%.

Allied Waste Industries ended 2006 with a cash and equivalents
balance of US$94 million.  Liquidity is enhanced by access to a
US$1.58 billion revolving credit facility that can be used for
cash borrowings and to support letters of credit.  As of
Dec. 31, 2006, US$1.18 billion was available under the revolving
credit facility after accounting for outstanding letters of
credit.  Balance sheet debt declined by US$181 million in 2006
to US$6.91 billion, contributing to an improvement in leverage,
with total debt/EBITDA of 4.5x at year-end 2006 versus 4.8x at
year-end 2005.  In 2007, Fitch expects leverage to decline
further, as the company plans to reduce debt by US$260 million
to US$285 million during the year.

Concerns include continued high leverage, volatility in fuel
prices and high capital expenditures needs.  Also of concern is
the potential for future U.S. Internal Revenue Service payments
related to the capital loss recorded by BFI prior to its
acquisition by Allied Waste Industries 1999, which could
pressure free cash flow and/or force an increase in debt.

The recovery ratings and notching in the debt structure of
Allied Waste Industries and Allied Waste North America reflect
Fitch's recovery expectations under a scenario in which
distressed enterprise value is allocated to the various debt
classes.  The recovery rating of 'RR3' for the new senior
secured notes reflects Fitch's expectation of good recovery
prospects for the votes in a distressed scenario, with expected
recoveries of 50% to 70%.

Allied Waste North America, Inc., a wholly owned operating
subsidiary of Allied Waste Industries, Inc., is based in
Phoenix, Arizona.  Allied Waste is a vertically integrated, non-
hazardous solid waste management company providing collection,
transfer, and recycling and disposal services for residential,
commercial and industrial customers.  As of December 31, 2006,
the company operated a network of 304 collection companies, 161
transfer stations, 168 active landfills and 57 recycling
facilities in 37 states and Puerto Rico.  The company had
revenues of approximately US$6.0 billion in fiscal 2006.


ALLIED WASTE: Moody's Places B1 Rating on Upcoming US$750M Notes
----------------------------------------------------------------
Moody's Investors Service upgraded the Corporate Family Rating
of Allied Waste Industries, Inc to B1 from B2, affirmed the Ba3
(LGD 2, 30%) rating on the senior secured credit facilities of
Allied Waste North America, Inc., and upgraded other rated debt
tranches of Allied Waste along with Allied Waste North America
and its wholly-owned subsidiary, Browning-Ferris Industries,
LLC.  Concurrently, Moody's assigned a B1 (LGD 4, 56%) rating to
the company's proposed US$750 million senior secured note due
2017.  The outlook for the ratings remains positive, reflecting
continuing pricing strength in the industry as a whole and the
company's own pricing initiatives in driving enhanced internal
revenue growth (6.7% in 2006, versus 5% in 2005 and 2.2% in
2004).

Moody's took these rating actions:

  Allied Waste Industries, Inc.

   -- Upgraded the Corporate Family Rating to B1 from B2;

   -- Upgraded the Probability of Default Rating to B1 from B2;

   -- Upgraded the US$230 million issue of 4.25% guaranteed
      senior  subordinated convertible bonds due 2034 to B3
     (LGD 5, 87%) from Caa1 (LGD5, 85%);

   -- Upgraded the US$600 million issue of 6.25% senior
      mandatory convertible preferred stock -- conversion date
      of March 2008 to B3 (LGD 6, 98%) from Caa1 (LGD6, 98%).

The Speculative Grade Liquidity Rating is SGL-1.

The outlook for the ratings remains positive.

  Allied Waste North America, Inc.

   -- Assigned a B1 (LGD4, 56%) rating to the proposed US$750
      million issue of guaranteed senior secured notes due 2017;

   -- Affirmed the B2 (LGD4, 57%) US$750 million issue of 8.5%
      guaranteed senior secured notes due 2008, subject to
      withdrawal upon completion of the refinancing;

   -- Affirmed the Ba3 (LGD2, 30%) rated US$1.575 billion
      guaranteed senior secured revolving credit facility
      due 2010;

   -- Affirmed the Ba3 (LGD2, 30%) rated US$1.105 billion
      guaranteed senior secured term loan due 2012;

   -- Affirmed the Ba3 (LGD2, 30%) rated US$490 million
      guaranteed senior secured Tranche A Letter of Credit
      Facility due 2012;

   -- Upgraded the US$350 million issue of 6.5% guaranteed
      senior secured notes due 2010 to B1 (LGD4, 56%) from B2
      (LGD4, 57%);

   -- Upgraded the US$400 million issue of 5.75% guaranteed
      senior secured notes due 2011 to B1 (LGD4, 56%) from B2
      (LGD4, 57%);

   -- Upgraded the US$275 million issue of 6.375% guaranteed
      senior secured notes due 2011 to B1 (LGD4, 56%) from B2
      (LGD4, 57%);

   -- Upgraded the US$251 million issue of 9.25% guaranteed
      senior secured notes due 2012 to B1 (LGD4, 56%) from B2
      (LGD4, 57%);

   -- Upgraded the US$450 million issue of 7.875% guaranteed
      senior secured notes due 2013 to B1 (LGD4, 56%) from B2
      (LGD4, 57%);

   -- Upgraded the US$425 million issue of 6.125% guaranteed
      senior secured notes due 2014 to B1 (LGD4, 56%) from B2
      (LGD4, 57%);

   -- Upgraded the US$595 million issue of 7.125% guaranteed
      senior secured notes due 2016 to B1 (LGD4, 56%) from B2
      (LGD4, 57%);

   -- Upgraded the US$600 million issue of 7.25% guaranteed
      senior secured notes due 2015 to B1 (LGD4, 56%) from B2
      (LGD4, 57%); and

   -- Upgraded the US$400 million issue of 7.375% guaranteed
      senior unsecured notes due 2014 to B2 (LGD4, 69%)
      from B3 (LGD4, 64%).

  Browning-Ferris Industries, LLC. -- (assumed by Allied Waste
    North America, Inc.)

   -- Upgraded the US$155 million issue of 6.375% senior secured
      notes due 2008 to B1 (LGD4, 56%) from B2 (LGD4, 57%);

   -- Upgraded the US$96 million issue of 9.25% secured
      debentures due 2021 to B1 (LGD 4, 56%) from B2
      (LGD4, 57%);

   -- Upgraded the US$294 million issue of 7.4% secured
      debentures due 2035 to B1 (LGD4, 56%) from B2 (LGD4, 57%);

   -- Upgraded the US$281 million of industrial revenue bonds
      with various maturities to B2 (LGD4, 69%) from B3
      (LGD4, 64%).

The ratings benefit from a stable underlying business with
limited available substitutes and the relative lack of
cyclicality in the municipal solid waste industry, the company's
prominent market position and the company's size and diversified
revenue stream as well as ownership of scarce assets.  The
ratings continue to be constrained by the company's high
leverage and weak free cash flow generation.  Although the
company has made progress with its best practices program over
the last year and a half, ongoing implementation costs,
fluctuations in fuel costs and cyclical weakness in construction
activity may put pressure on operating margins.  Although
Moody's expects ongoing improvements in free cash flow, such
improvements are likely to continue to be constrained by
interest payments and high ongoing capital expenditure levels.

Sustainable leverage metrics at current levels or lower,
combined with improved, sustainable adjusted free cash flow of
the order of 5% of debt while maintaining adequate capital
expenditures could lead to an upgrade.

Indications of pricing weakness in the industry, substantial
volume declines (e.g., as a result of a slowdown in construction
activity) which lead to negative free cash flows, debt-financed
acquisitions or additional indebtedness, for example in
connection with potential developments with respect to the
outstanding dispute with the IRS could lead to stabilization of
the outlook or place downward pressure on the ratings.

Allied Waste North America, Inc., a wholly owned operating
subsidiary of Allied Waste Industries, Inc., is based in
Phoenix, Arizona.  Allied Waste is a vertically integrated, non-
hazardous solid waste management company providing collection,
transfer, and recycling and disposal services for residential,
commercial and industrial customers.  As of Dec. 31, 2006, the
company operated a network of 304 collection companies, 161
transfer stations, 168 active landfills and 57 recycling
facilities in 37 states and Puerto Rico.  The company had
revenues of approximately US$6.0 billion in fiscal 2006.


ALLIED WASTE: S&P Assigns BB-/RR4 Rating on US$750MM Sr. Notes
--------------------------------------------------------------
Standard & Poor's Ratings Services assigned debt and recovery
ratings to Allied Waste North America Inc.'s proposed US$750
million senior notes due 2017.  The notes are rated 'BB-', one
notch lower than the parent's corporate credit rating, with a
recovery rating of '4', indicating the expectation for marginal
(25%-50%) recovery of principal in the event of a payment
default.  Allied Waste North America is a wholly owned
subsidiary of Scottsdale, Ariz.-based Allied Waste Industries
Inc. (Allied Waste; BB/Stable/--).  The notes are a drawdown
under Allied Waste's existing shelf and are guaranteed by Allied
Waste and subsidiaries of Allied Waste North America.
     
At the same time, Standard & Poor's affirmed its ratings,
including its 'BB' corporate credit rating, on Allied Waste.  
The outlook is stable.  About US$6.9 billion of debt was
outstanding as of Dec. 31, 2006.
     
Allied Waste will use proceeds from the notes to fund a tender
offer for Allied Waste North America's outstanding US$750
million 8.5% senior notes due 2008.  At closing, we'll withdraw
the 'BB-' rating on the 8.5% notes.
      
"The ratings on the new notes reflect the disadvantaged position
of the noteholders relative to the secured bank lenders, the
sizable amount of secured claims on the specific assets pledged
as collateral, and the sharing of this collateral with the bank
lenders," said Standard & Poor's credit analyst Roman Szuper.
     
The ratings on Allied Waste reflect a highly leveraged financial
profile, which outweighs the company's fairly strong competitive
business position.
     
Allied Waste's highly leveraged financial profile stems mainly
from debt incurred in the 1999 acquisition of Browning-Ferris
Industries Inc.  Since that time, the firm's key focus has been
on debt reduction from free cash flow, the issuance of equity,
and the proceeds from divestitures.  Operating margins
stabilized at around 26% in 2006, supported by price increases,
modest volume gains, and benefits of ongoing cost reduction
programs.

Allied Waste North America, Inc., a wholly owned operating
subsidiary of Allied Waste Industries, Inc., is based in
Phoenix, Arizona.  Allied Waste is a vertically integrated, non-
hazardous solid waste management company providing collection,
transfer, and recycling and disposal services for residential,
commercial and industrial customers.  As of December 31, 2006,
the company operated a network of 304 collection companies, 161
transfer stations, 168 active landfills and 57 recycling
facilities in 37 states and Puerto Rico.  The company had
revenues of approximately US$6.0 billion in fiscal 2006.


MUSICLAND HOLDING: Confirmation Hearing Adjourned to March 29
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
adjourned the hearing on the confirmation of Musicland Holding
Corp. and its debtor-affiliates' Second Amended Joint Plan of
Liquidation to March 29, 2007.

The hearing started on Nov. 28, 2006, and was adjourned to
Feb. 22, 2007.

The Court approved the Debtor's Amended Disclosure Statement on
Oct. 13, 2006.

Headquartered in New York, New York, Musicland Holding Corp., is
a specialty retailer of music, movies and entertainment-related
Products in the United States, including Puerto Rico.  The
Debtor and 14 of its affiliates filed for chapter 11 protection
on Jan. 12, 2006 (Bankr. S.D.N.Y. Lead Case No. 06-10064).  
James H.M. Sprayregen, Esq., at Kirkland & Ellis, represents the
Debtors in their restructuring efforts.   Mark T. Power, Esq.,
at Hahn & Hessen LLP, represents the Official Committee of
Unsecured Creditors.  When the Debtors filed for protection from
their creditors, they estimated more than US$100 million in
assets and debts.  (Musicland Bankruptcy News, Issue No. 28;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


R&G FINANCIAL: Shares Delisted from New York Stock Exchange
-----------------------------------------------------------
R&G Financial Corp. shares have been delisted from the New York
Stock Exchange, after the firm said that it wouldn't be able to
file its 2005 results before April 3, Business News Americas
reports.

BNamericas relates that April 3 was the deadline the NYSE set
for the filing of the results.

R&G Financial said on Feb. 13 that it experienced some delays in
producing the financial statements and that the stock will
likely trade on the Pink Sheets, BNamericas notes.

BNamericas underscores that since the announcement, R&G
Financial's shares dropped 33% to US$5.13.

According to BNamericas, R&G Financial is currently preparing
restated consolidated financial statements for the years ended
2002 through 2004.

BNamericas states that due to the restatement of the results,
the aggregate reductions to R&G Financial's stockholder equity
are between US$185 million to US$200 million after taxes,
compared with the US$168 million to US$183 million expected at
first.

R&G Financial told BNamericas that it will file the 2005 results
in the first quarter.

Headquartered in Hato Rey, Puerto Rico, R&G Financial Corp.
(NYSE: RGF) -- http://www.rgonline.com/-- is a diversified
financial holding company with operations in Puerto Rico and the
United States, providing banking, mortgage banking, investments,
consumer finance and insurance through its wholly owned
subsidiaries, R-G Premier Bank, R-G Crown Bank, R&G Mortgage
Corporation, Puerto Rico's second largest mortgage banker, R-G
Investments Corporation, the Company's Puerto Rico broker-
dealer, and R-G Insurance Corporation, its Puerto Rico insurance
agency.  At June 30, 2006, the Company operated 37 bank branches
in Puerto Rico, 35 bank branches in the Orlando, Tampa/St.
Petersburg and Jacksonville, Florida and Augusta, Georgia
markets, and 49 mortgage offices in Puerto Rico, including 37
facilities located within R-G Premier Bank's banking branches.

                        *    *    *

Fitch Ratings lowered on Oct. 30, 2006, these ratings of R&G
Financial Corp. and its subsidiaries:

  R&G Financial Corp.

      -- Long-term IDR to 'BB' from 'BBB-';
      -- Preferred stock to 'B' from 'BB'; and
      -- Individual to 'D' from 'C'.

   R-G Premier Bank

      -- Long-term IDR to 'BB' from 'BBB-';
      -- Short-term issuer to 'B' from 'F3';
      -- Long-term deposit obligations to 'BB+' from 'BBB';
      -- Short-term deposit obligations to 'B' from 'F3'; and
      -- Individual to 'C/D' from 'C'.

  R-G Crown Bank

      -- Long-term IDR to 'BB' from 'BBB-';
      -- Short-term issuer to 'B' from 'F3';
      -- Long-term deposit obligations to 'BB+ from 'BBB'; and
      -- Individual to 'C/D' from 'C'

  R&G Mortgage

      -- Long-term IDR to 'BB' from 'BBB-'.

Fitch said the rating outlook is negative.




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


MIRANT CORP: NY Units Want Confirmation Trial Moved to March 21
----------------------------------------------------------------
Mirant New York, Inc., Hudson Valley Gas Corporation and Mirant
Bowline, LLC, affiliates of Mirant Corp., asks the Honorable D.
Michael Lynn of the United States Bankruptcy Court for the
Northern District of Texas to issue an order:

    (a) approving a proposed form of notice of recommencement of
        confirmation in connection with their Chapter 11 cases;

    (b) setting a status conference and hearing on their
        Supplemental Joint Chapter 11 Plan;

    (c) establishing a deadline to file objections to the
        Supplemental Plan;

    (d) finding that the Supplemental Plan does not alter in any
        respect the treatment of the holders of unsecured claims
        against each Emerging New York Entity; therefore, all
        votes cast by the unsecured claimholders in respect of
        the confirmed Joint Plan of Reorganization filed by the
        New Mirant Entities will be deemed votes cast in respect
        of the Supplemental Plan; and

    (e) finding that the Supplemental Plan fully incorporates
        the tax dispute settlement between the Emerging New York
        Entities and the Town of Haverstraw, the Assessor of the
        Town of Haverstraw, the Rockland North Central School
        District and Rockland County, New York; therefore, New
        York Taxing Authorities with claims against the Emerging
        New York Entities are unimpaired under the Supplemental
        Plan.

Jeff P. Prostok, Esq., at Forshey & Prostok LLP, in Fort
Worth, Texas, relates that the proposed Recommencement Notice
establishes March 21, 2007, at 1:30 p.m. prevailing Central
Time, as the date on which the Confirmation Hearing will
recommence, and March 16, 2007, at 4:00 p.m., as the last day to
object to the Supplemental Plan.

The Emerging New York Entities will serve the Recommencement
Notice on all of their creditors.  The Recommencement Notice
will also be published in (i) The Wall Street Journal, and (ii)
The Journal News, no less than 25 days prior to the
recommencement of the Confirmation Hearing.

Mr. Prostok asserts that no further disclosure is required in
connection with the Supplemental Plan because the treatment of
holders of unsecured claims against the Emerging New York
Entities under the Supplemental Plan is identical to the
treatment the holders would have received under the confirmed
Mirant Plan.

Under these circumstances, Mr. Prostok continues, there is no
need for holders of unsecured claims to receive any disclosures
over and above what was received under the Original Disclosure
Statement.  The votes cast by the holders in respect of the
confirmed Mirant Plan should also be deemed votes cast in favor
of the Supplemental Plan, he adds.

Mr. Prostok reminds the Court that Section 1124 of the
Bankruptcy Code provides that a class of claims or interests is
unimpaired if the plan "leaves unaltered the legal, equitable,
and contractual rights to which such claim of interest entitles
the holder of such claim or interest."  Section 1126(f) further
provides that a class of claims that is unimpaired under a plan
is conclusively presumed to have accepted the plan.

Mr. Prostok points out that Class 1 - Taxing Jurisdiction
Settlement Claims is unimpaired since the Supplemental Plan
provides that the Class 1 Claims will "receive the treatment
specified in the New York Settlement."

The Class 1 Claimholders will receive all their legal, equitable
and contractual rights under the New York Settlement without
modification, and should conclusively be deemed to have accepted
the Supplemental Plan, Mr. Prostok asserts.

The Supplemental Plan is available at the Bankruptcy Services
Inc. at Third Avenue, 3rd Floor, New York, New York 10017.

For questions, if any, contact Jeff Prostok, Esq., Forshey &
Prostok LLP 777 Main Street, Suite 1290, Fort Worth, Texas
76102; or Craig H. Averch, Esq., White Case LLP, 633 West Fifth
Street, Suite 1900, Los Angeles, California 90071

                      About Mirant Corp.

Headquartered in Atlanta, Georgia, Mirant Corp. (NYSE: MIR)
-- http://www.mirant.com/-- is an energy company that produces  
and sells electricity in North America, the Caribbean, and the
Philippines.  Mirant's investments in the Caribbean
include three integrated utilities and assets in Jamaica, Grand
Bahama, Trinidad and Tobago and Curacao.  Mirant owns or leases
more than 18,000 megawatts of electric generating capacity
globally.  Mirant Corporation filed for chapter 11 protection on
July 14, 2003 (Bankr. N.D. Tex. 03-46590), and emerged under the
terms of a confirmed Second Amended Plan on Jan. 3, 2006.
Thomas E. Lauria, Esq., at White & Case LLP, represented the
Debtors in their successful restructuring.  When the Debtors
filed for protection from their creditors, they listed
US$20,574,000,000 in assets and US$11,401,000,000 in debts. The
Debtors emerged from bankruptcy on Jan. 3, 2006.  Mirant NY-Gen,
LLC, Mirant Bowline, LLC, Mirant Lovett, LLC, Mirant New York,
Inc., and Hudson Valley Gas Corporation, were not included and
have yet to submit their plans of reorganization.  (Mirant
Bankruptcy News, Issue No. 113; Bankruptcy Creditors' Service
Inc., http://bankrupt.com/newsstand/or 215/945-7000).




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


BANCO DE GALICIA: Uruguayan Central Bank Lifts Unit's Suspension
----------------------------------------------------------------
A spokesperson of Banco de Galicia y Buenos Aires told Business
News Americas that the suspension imposed by the Uruguayan
central bank on Galicia Uruguay has been lifted.

According to BNamericas, Galicia Uruguay was intervened and
suspended in February 2002 due to a liquidity crisis.

The spokesperson told BNamericas, "The suspension was lifted
thanks to the external auditors' and receiver's good appraisal
of the bank's capitalization.  Galicia Uruguay executives will
retake their positions but this does not mean the bank will be
liquidated."

However, Banco de Galicia would not be able to make a decision
whether to reopen Galicia Uruguay anytime soon.  There are
several yearly payments pending from restructured deposits,
BNamericas notes, citing the spokesperson.

BNamericas underscores that Galicia launched in 2004 a plan to
restructure a US$1.5-billion debt, as it was one of the banks
most affected by the 2001-2002 Argentine economic and financial
crisis.

Galicia Uruguay also restructured a US$1.1-billion debt in 2003.  
It stil owes about US$120 million, the spokesperson told
BNamericas.

Headquartered in Buenos Aires, Argentina, Banco de Galicia y
Buenos Aires SA -- http://www.e-galicia.com/-- is an
Argentinean private bank that is engaged in commercial banking,
providing general banking services to large corporations, small
and medium-sized companies, agricultural and cattle farms and
individuals.  The company controls an extensive and diverse
network of subsidiaries, which include Banco Galicia Uruguay SA,
Galicia Capital Markets SA, Galicia Factoring y Leasing SA, Agro
Galicia SA, Galicia Administradora de Fondos SA, Galicia Valores
SA, Galicia Warrants SA, Net Investments SA, Sudamericana
Holding SA and Tarjetas Regionales SA.  Through its subsidiaries
the company offers accounting, investment and insurance
services, loans, checks and debit and credit cards.  It also
finances the development of real estate, acts as a fiduciary and
leases properties to interested parties.  It operates over 400
branches across the country and provides e-banking services to
customers via its Internet site.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Feb. 23, 2007, Banco de Galicia y Buenos Aires' Obligaciones
Negociables issued on Nov. 6, 2001, for the original amount of
US$12 millon was rated D by the Argentine arm of Standard &
Poor's International Ratings.




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


ARVINMERITOR: Moody's Affirms Ba3 Corporate Family Rating
---------------------------------------------------------
Moody's Investors Service has upgraded ArvinMeritor's senior
secured bank debt rating to Baa3 (LGD 2, 13%) from Ba1 (LGD-2,
20%) and affirmed the company's Corporate Family Rating of Ba3,
Speculative Grade Liquidity rating of SGL-2, and stable outlook.  
The actions follow shifts in the company's capital structure,
which have enhanced expected recovery rates on secured
indebtedness, an amendment to its bank credit facilities, and
the announcement of the pending sale of its Emission Technology
business.

In February, ArvinMeritor issued US$200 million of unsecured
convertible notes with maturity in 2027.  Proceeds will be used
to pre-pay a US$170 million senior secured bank term loan due in
2012 with the balance after fees and expenses retained for
general corporate purposes.  The company also amended its bank
revolving credit facility.  This involved a reduction in the
committed amount from US$980 million to US$900 million and flows
from the smaller aggregate size of the organization's
requirements, which will arise post the disposition of its
Emission Technologies business.  At the same time, two financial
covenants in its bank credit facility were amended which will
expand the company's compliance headroom over the intermediate
term.  Moody's would not expect any material change in key
metrics affecting the firm's Corporate Family rating if proceeds
were used to reduce indebtedness as total debt in proportion to
continuing EBITDA should not appreciably change, nor would those
ratios be materially affected by the refinancing.  Although
interest coverage may improve slightly, other ratios will remain
in a range typical of peers in the Ba3 rating category.  While
Emissions Technology had lower margins than ArvinMeritor's other
business groups, it was expected to contribute to free cash
flow.  Accordingly, the Corporate Family Rating has been
affirmed.

ArvinMeritor will continue to face challenges in certain markets
over the coming year.  But, it will do so with a solid liquidity
profile, the benefits of geographic diversification,
participation in multiple remaining segments with market
leadership, and contributions from its restructuring
initiatives.  The Emissions Technology group provided some
upside potential from its solutions to changing regulatory
requirements, particularly in the commercial vehicle market in
advance of the 2010 EPA requirements in North America.  However,
margins in Emissions Technology were also being affected by
higher nickel prices and related costs of stainless steel.  
Although quantitative metrics for much of 2007 will be affected
by the decline in North American Class 8 production, those
volume declines will be partially offset by levels of ongoing
demand for medium and heavy duty vehicles in Europe as well as
contributions from its aftermarket parts, trailer and Asian
markets.  North American commercial vehicle production is
anticipated to recover in 2008 and 2009.  On balance, the
company's financial performance in 2007 and 2008 should remain
within the parameters of its assigned Corporate Family Rating.  
Consequently, the stable outlook remains appropriate.

The refinancing activity alters recovery expectations in
downside scenarios on debt in ArvinMeritor's capital structure.  
While aggregate enterprise value is essentially unchanged, the
reduction in the amount of higher priority secured debt and
increase in unsecured obligations beneath their claims has
improved recovery rates on the bank facility.  This is reflected
in results in Moody's Loss Given Default model.  On a pro forma
basis as of December 31, 2006, and adjusting for the convertible
issuance, term loan repayment and revolving credit commitment
reduction, the rating on the secured bank debt was raised by one
notch to Baa3 (LGD-2, 13%) from Ba1 (LGD-2, 20%).  The recovery
rate for unsecured debt was not materially affected.  Its
recovery assessment at LGD-4, 63% declined marginally but
remains within the bounds of its B1 rating category.  Similarly,
ratings on Arvin Capital and ArvinMeritor's other obligations
were not affected.  Moody's does not rate ArvinMeritor's
convertible note issues.  The rating on the secured bank term
loan has been withdrawn upon its repayment.

The SGL-2 liquidity rating represents good liquidity over the
coming 12 months.  The rating incorporates significant internal
sources arising from existing cash, modest free cash flow
expectations post the business disposition, and anticipated
receipt of proceeds from the announced sale of Emissions
Technologies (the valuation is stated as US$310 million but
includes consideration of a US$20 million seller note, the
assumption of certain liabilities and is subject to settlement
adjustments).  While external committed facilities have been
reduced 8%, the amount remains ample with respect to the
requirements of the smaller size of the continuing business (pro
forma revenues will be roughly 30% lower).  A recent amendment
to the bank facilities also established incremental head room
under its prescribed leverage and fixed charge covenants.

Ratings changed:

  ArvinMeritor, Inc.

   -- Senior secured revolving credit facility to Baa3
      (LGD-2, 13%) from Ba1 (LGD-2, 20%)

Changes to Loss Given Default Assessments

ArvinMeritor, Inc.

   -- Senior unsecured notes to LGD-4, 63% from LGD-4, 65%
   -- Shelf unsecured to LGD-4, 63% from LGD-4, 65%

The last rating action was on January 19, 2007, at which time
ArvinMeritor's Corporate Family Rating was lowered to Ba3 from
Ba2.

Headquartered in Troy, Michigan, ArvinMeritor, Inc. (NYSE: ARM)
-- http://www.arvinmeritor.com/-- is a premier US$8.8 billion    
global supplier of a broad range of integrated systems, modules
and components to the motor vehicle industry.  The company
serves light vehicle, commercial truck, trailer and specialty
original equipment manufacturers and certain aftermarkets.
ArvinMeritor employs approximately 29,000 people at more than
120 manufacturing facilities in 25 countries.  It maintains 23
facilities in Venezuela, Brazil and Argentina.  ArvinMeritor
common stock is traded on the New York Stock Exchange under the
ticker symbol ARM.


DAIMLERCHRYSLER: Chrysler's Bidding Process May Start This Week
---------------------------------------------------------------
DaimlerChrysler AG's Chrysler Group's bidding process will
probably start this week, The Detroit News suggests.

According to the report, J.P. Morgan Chase & Co. will hand out a
detailed prospectus to a limited number of potential buyers,
which include Cerberus Capital, Apollo Management, the Carlyle
Group, and the Blackstone Group.

One potential bidder is OAO Gaz Group, Russia's second largest
auto company, German weekly Focus magazine notes.  Chrysler
supplies four-cylinder engines for cars and mini-vans to Gaz.

As reported in the Troubled Company Reporter-Europe on Feb. 19,
citing German publication Manager Magazin, DaimlerChrysler AG
and General Motors Corp. are in talks about a possible purchase
of the Chrysler Group by GM.

According to the Financial Times, if a deal between
DaimlerChrysler and General Motors Corp. for Chrysler will push
through, the German-based automaker will consider buying a
minority stake in the U.S.-based company.

In a TCR-Europe report on Feb. 23, Volkswagen AG, Renault SA,
and Nissan Motor Co. said they are not interested in acquiring
or entering into a partnership with Chrysler.  The Wall Street
Journal earlier related that the Renault-Nissan auto alliance
had initially been tagged as possible Chrysler partners after
DaimlerChrysler disclosed its intention to sell the unit or find
partners among other automakers to help run the company.

                   About DaimlerChrysler

Headquartered in Stuttgart, Germany, DaimlerChrysler AG --
http://www.daimlerchrysler.com/-- develops, manufactures,  
distributes, and sells various automotive products, primarily
passenger cars, light trucks, and commercial vehicles worldwide.
It primarily operates in four segments: Mercedes Car Group,
Chrysler Group, Commercial Vehicles, and Financial Services.

The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler,
Jeep, and Dodge brand names.  It also sells parts and
accessories under the MOPAR brand.

The Chrysler Group is facing a difficult market environment in
the United States with excess inventory, non-competitive legacy
costs for employees and retirees, continuing high fuel prices
and a stronger shift in demand toward smaller vehicles.  At the
same time, key competitors have further increased margin and
volume pressures -- particularly on light trucks -- by making
significant price concessions.  In addition, increased interest
rates caused higher sales & marketing expenses.

In order to improve the earnings situation of the Chrysler Group
as quickly and comprehensively, measures to increase sales and
cut costs in the short term are being examined at all stages of
the value chain, in addition to structural changes being
reviewed as well.


DAIMLERCHRYSLER AG: Hyundai Denies Interest in Chrysler Purchase
----------------------------------------------------------------
Hyundai Motor squashed rumors about a possible Chrysler
acquisition from DaimlerChrysler AG, denying a report posted on
Feb. 19 by U.K.-based The Times on its Web site, the Associated
Press states.

The Times report claimed that Hyundai intends to join would-be
bidders because it was interested in Chrysler's dealerships
network in the U.S., the Associated Press relates.

"We are not considering to buy Chrysler because our hands are
full," Hyundai spokesman Jake Jang told AP.

According to AP, Mr. Jang went on to say that Hyundai has an
engine deal with Chrysler and Japan's Mitsubishi Motors Corp.,
which lets them produce engines based on the South Korean
automaker's design.

                    About Hyundai Motor

Headquartered in Seoul, South Korea, Hyundai Motor Company --
http://www.hyundai-motor.com/-- has been selling cars in the  
United States since 1986, but it only started selling its heavy
trucks stateside in 1998.  Hyundai produces 14 models of cars
and minivans, as well as trucks, buses, and other commercial
vehicles.  The Company reestablished itself as Korea's leading
carmaker in 1998 by acquiring a 51% stake in Kia Motors -- since
reduced to about 45%.  The Company also manufactures machine
tools for factory automation and material- handling equipment.

                    About DaimlerChrysler

Based in Stuttgart, Germany, DaimlerChrysler AG --
http://www.daimlerchrysler.com/-- develops, manufactures,  
distributes, and sells various automotive products, primarily
passenger cars, light trucks, and commercial vehicles worldwide.  
It primarily operates in four segments: Mercedes Car Group,
Chrysler Group, Commercial Vehicles, and Financial Services.

The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler,
Jeep, and Dodge brand names.  It also sells parts and
accessories under the MOPAR brand.

The Chrysler Group is facing a difficult market environment in
the United States with excess inventory, non-competitive legacy
costs for employees and retirees, continuing high fuel prices
and a stronger shift in demand toward smaller vehicles.  At the
same time, key competitors have further increased margin and
volume pressures -- particularly on light trucks -- by making
significant price concessions.  In addition, increased interest
rates caused higher sales & marketing expenses.

In order to improve the earnings situation of the Chrysler Group
as quickly and comprehensively, measures to increase sales and
cut costs in the short term are being examined at all stages of
the value chain, in addition to structural changes being
reviewed as well.


DAIMLERCHRYSLER: Magna Makes Chrysler's New Seating Features
------------------------------------------------------------
Intier Automotive Seating, an operating unit of Magna
International Inc., in conjunction with Chrysler Group, has co-
engineered and manufactured new seating features for Chrysler
Group's 2008 Dodge Grand Caravan and 2008 Chrysler Town &
Country.

Chrysler Group's new 2008 minivans, unveiled at this year's
North American International Auto Show, offer three distinct
seating and storage options.

The newest seating option is a cutting-edge seating technology
called Swivel 'n Go(TM).  It includes second-row quad seats that
swivel 180 degrees rearward to face the third-row seats.

Swivel 'n Go also includes a removable table that installs
between the second- and third-row seats.  The seats swivel
outward, which eases entry and exit or the placement of a child
in a car seat.  Both swiveling seats can also be removed.

Heated cloth or leather first- and second-row seats are
available in the Swivel 'n Go and industry-exclusive Stow 'n
Go(R) seating and storage system configurations in the 2008
Chrysler Group minivans.

"Consumers today are spending more and more time in their
vehicles, ultimately placing a greater emphasis on comfort and
convenience," says Jeff Lambert, Intier Automotive Seating Chief
Engineer for the Chrysler Group minivan seats.

"The Swivel 'n Go seating system, an industry-first in the North
American market, raises the bar by offering a family room on
wheels."

To further enhance the new minivans, Chrysler Group worked with
Intier Automotive Seating to develop a powered version of its
fold-in-the-floor third-row seat.

The one-touch operation, which stows the seat in less than
15 seconds, is a minivan first.  The one-touch, power-folding,
third-row seat will stow in four different modes.

Depending on the passenger/cargo needs, the entire seat can
stow, be in tailgate mode or each section of the seat can stow
or tailgate individually.

The third-row, power-folding seat also includes an obstacle-
detection system that will stop the seat from folding in the
event a person or object is in the way.

"Our drive at Intier Seating is to accommodate our customer's
unique functional requests and to provide innovative
applications like these that translate into market advantages
for the vehicle," said Joe Pittel, president of Intier
Automotive Seating.

Swivel 'n Go and Stow 'n Go are registered trademarks of
DaimlerChrysler Corporation.

               About Intier Automotive Seating

Intier Automotive Seating is an innovative leader in the
development and manufacturing of complete seating systems and
seating mechanisms for the automotive industry.

                  About Magna International

Magna International Inc. designs, develops, and manufactures
automotive systems, assemblies, modules, and components, and
engineers and assembles complete vehicles, primarily for sale to
original equipment manufacturers of cars and light trucks in
North America, Europe, Asia, and South America.  Its
capabilities include the design, engineering, testing, and
manufacture of automotive interior and closure systems; metal
body and structural systems; exterior and interior mirror and
engineered glass systems; exterior systems, including front and
rear end modules, plastic body panels, exterior trim and other
systems; various powertrain and drivetrain systems; as well as,
complete vehicle engineering and assembly.

Magna International has approximately 84,000 employees in 228
manufacturing operations and 62 product development and
engineering centers in 23 countries.

                    About DaimlerChrysler

Based in Stuttgart, Germany, DaimlerChrysler AG --
http://www.daimlerchrysler.com/-- develops, manufactures,  
distributes, and sells various automotive products, primarily
passenger cars, light trucks, and commercial vehicles worldwide.
It primarily operates in four segments: Mercedes Car Group,
Chrysler Group, Commercial Vehicles, and Financial Services.

The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler,
Jeep, and Dodge brand names.  It also sells parts and
accessories under the MOPAR brand.

The Chrysler Group is facing a difficult market environment in
the United States with excess inventory, non-competitive legacy
costs for employees and retirees, continuing high fuel prices
and a stronger shift in demand toward smaller vehicles.  At the
same time, key competitors have further increased margin and
volume pressures -- particularly on light trucks -- by making
significant price concessions.  In addition, increased interest
rates caused higher sales & marketing expenses.

In order to improve the earnings situation of the Chrysler Group
as quickly and comprehensively, measures to increase sales and
cut costs in the short term are being examined at all stages of
the value chain, in addition to structural changes being
reviewed as well.


PETROLEOS DE VENEZUELA: Inks Oil-for-Advice Pact with London
------------------------------------------------------------
London will get discounted oil from Petroleos de Venezuela SA in
exchange for Mayor Ken Livingstone's urban planning advice.

The deal was forged in London last week between Mayor
Livingstone and Venezuelan Foreign Minister Nicolas Maduro.

Under the agreement, Petroleos de Venezuela Europa will reduce
by 20% the price of fuel for London's bus fleet, approximately
US$32 million per year.  The reduction would benefit about
250,000 Londoners on income support who will be able to receive
a 50% discount on bus and tram travel.  In turn, Mayor
Livingstone will provide the Latin American nation technical
assistance in areas such as traffic management, tourism
development and urban planning.

The Financial Times says Peter Hendy, Mr. Livingstone's
transport chief, will set up an office in Caracas, Venezuela, in
April.

"This is an incredibly generous offer by the president of
Venezuela," Mayor Livingstone was quoted by Bloomberg News as
saying at a news conference.  "This builds on work his
government is doing across the world to tackle poverty."

Minister Maduro told Bloomberg that his country would like to
promote cooperation programs with other cities.

"London will help us in a big, historic task, which is
reorganizing the city of Caracas," the Venezuelan foreign
minister told Bloomberg.  "Venezuela is living a social,
political and economical revolution and we now want this
revolution to have an impact in the urban quality of life."

                 Promoting Venezuela's Image

Mr. Livingstone, according to Bloomberg, has called U.S.
President George Bush "the most corrupt American president since
Harding."

Warren G. Harding, America's 29th president, is notorious for an
oil-lease bribes scandal called Teapot Dome, Bloomberg relates.

Part of the agreement between Caracas and London is for the
mayor's office to "actively and efficiently promote Venezuela's
image in the UK," the FT says.

                           Critic

Richard Barnes, a Conservative deputy leader of London's
legislative assembly, said in reports that the deal in nonsense.

"For the mayor to develop a foreign policy of his own is a
nonsense.  We are a G8 [Group of Eight] capital city and we are
getting foreign aid," Mr. Barnes was quoted by FT as saying.

"Why does London, one of the richest capitals in the world, need
to exploit a developing nation?" Mr. Barnes told Bloomberg in an
e-mailed statement.  "This money would be better directed at the
poor of Venezuela."

Despite having the world's fifth largest gas reserves, not
everyone in Venezuela lives in relative comfort, reports said.  

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

                        *    *    *

As reported on Nov. 22, 2006, Fitch affirmed the local and
foreign currency Issuer Default Ratings of Petroleos de
Venezuela S.A. at 'BB-'.  Fitch has also affirmed the 'AAA(ven)'
national scale rating of the company.  Fitch said the rating
outlook is stable.


PETROLEOS DE VENEZUELA: Sends Diesel to Petroecuador
----------------------------------------------------
Venezuelan state oil firm Petroleos de Venezuela has sent its
first of three shipments of 220,000 barrels of diesel to
Petroecuador, the latter said in a statement.

Business News Americas relates that the shipments are under a
diesel-for-crude exchange between Petroecuador and Petroleos de
Venezuela.  Petroecuador will be able to save at least US$1.5
million.

The second shipment will be on March 15-17, while the third
delivery will be on March 22-24.  Both of the deliveries will
also have 220,000 barrels, BNamericas notes.

According to BNamericas, each barrel from the first shipment
will have a price of Platts reference price plus US$3.23.  The
next two deliveries will have a value of Platts plus US$3.77.  
The shipments have a market value of US$43.8 million.

Petroleos de Venezuela could ship 36,000 barrels per day through
April due to existing contracts, after which point it could
start to deliver 72,000 barrels per day, Petroecuador said in a
statement.

                     About Petroecuador

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

                 About Petroleos de Venezuela

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

                        *    *    *

As reported on Nov. 22, 2006, Fitch affirmed the local and
foreign currency Issuer Default Ratings of Petroleos de
Venezuela S.A. at 'BB-'.  Fitch has also affirmed the
'AAA(ven)' national scale rating of the company.  Fitch said the
rating outlook is stable.


PETROLEOS DE VENEZUELA: To Issue US$3.5B Bonds in First Quarter
---------------------------------------------------------------
Venezuelan Finance minister Rodrigo Cabezas told Agencia
Bolivariana de Noticias that state-owned oil firm Petroleos de
Venezuela SA will issue bonds for about US$3.5 billion in the
first quarter of 2007.

Business News Americas relates that Minister Cabezas and
Petroleos de Venezuela are promoting bonds to encourage citizens
to save more and to absorb excess liquidity that is increasing
inflation by 2% per month.

Minister Cabezas told BNamericas, "We announce a strategy of
being able to finance part of what is in the nation's budget via
debt [bought by] Venezuelans with their own savings and also
with an element of restricting liquidity in the domestic
market."

Petroleos de Venezuela said it will contract this year at least
US$4.5 billion of new debt, including US$1 billion from a
syndicated line of credit led by bank BNP Paribas, BNamericas
states.

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

                        *    *    *

As reported on Nov. 22, 2006, Fitch affirmed the local and
foreign currency Issuer Default Ratings of Petroleos de
Venezuela S.A. at 'BB-'.  Fitch has also affirmed the
'AAA(ven)' national scale rating of the company.  Fitch said the
rating outlook is stable.


* VENEZUELA: Int'l Court To Consider Eni's US$1 Billion Claim
-------------------------------------------------------------
The International Center for the Settlement of Investment
Disputes disclosed that it would consider the US$1 billion
compensation claim filed by Italy's Eni against Venezuela for
seizure of the Dacion oil field last year, Reuters reports.  The
claim includes loss profits from the field after it was seized.

According to ICSID's Web site, it had registered the Eni case
against Venezuela over a hydrocarbon concession but has yet to
form the tribunal.

EL Universal relates that the arbitration proceeding between the
two parties started last November, following Caracas'
termination of Dacion operational deal in April 2006 during
Venezula's campaign to extend its state control over oil
industries.

Italian newspaper MF says the tribunal would begin the
discussion of the case in April.

Washington-based ICSID, related to the World Bank, aims to
settle disputes in connection with bilateral investment
agreements.

                        *    *    *

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


* VENEZUELA: Pricing New South Bonds 112.6% Per Cent Higher
-----------------------------------------------------------
Venezuelan Finance Minister Rodrigo Cabezas told Reuters Monday
that the latest issuance of the so-called bond of the south will
be priced 112.6% higher than the joint bonds issued in November
2006.

The first issuance of the south bonds was for US$1 billion.  The
second issue, launched Monday, is for US$1.5 billion and to be
paid in bolivars.  It will be sold in Venezuela's local market
to fund the country's public debt service to absorb excess
liquidity and curb inflation.

The finance minister adds that the new offer includes the sale
at a fixed price of principal and interest covered bonds -- the
U.S. dollar-denominated Venezuelan public debt -- which will
expire in 2019 and has a fixed coupon rate of 5.25%.  Another
component of the issuance is the Argentinean Bonden 15, with a
fixed 7% coupon rate, El Universal says.

                        *    *    *

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


* VENEZUELA: Reaches Demarcation Pact with Trinidad on Deltana
--------------------------------------------------------------
The governments of Venezuela and Trinidad and Tobago have
finally reached an agreement, after four years, on how to share
the Plataforma Deltana offshore gas field.

According to the Jamaica Gleaner, Venezuela gets 75% of the
Loran fields reserves, a section of the Deltana Platform, which
has a proven reserve of 10 trillion cubic feet of natural gas.

Talks between the two countries were stalled last year when the
Trinidad government refused to sign up for the PetroCaribe
initiative, a program of Venezuelan President Hugo Chavez that
provides member countries with crude on preferential terms.

Previously, President Chavez said in 2003, he hoped gas from the
Plataforma Deltana, located close to Trinidad, will be processed
in Port of Spain for export markets since the South American
country was without an LNG plant, the Gleaner relates.

"Looking ahead at market dynamics, given Venezuela's proximity
to a well established LNG infrastructure in Trinidad and Tobago,
it may one day make sense for gas from Plataforma Deltana area
to be monetized in Trinidad and Tobago," Professor Anthony
Bryan, a senior associate in the Americas Programme at the
Washington-based Centre for Strategic and International Studies
was quoted by the Gleaner as saying.

"Venezuela is at least a decade behind this country in the
monetization of its natural gas," Prof. Bryan added.

                       *    *    *

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


* VENEZUELA: Will Relocate Alunasa to Nicaragua
-----------------------------------------------
Published reports say that the Venezuelan government will
relocate Alunasa, the Costa Rican subsidiary of state heavy
industry holding Corporacion Venezolana de Guyana, to Nicaragua.

As reported in the Troubled Company Reporter-Latin America on
Feb. 21, 2007, Venezuelan President Hugo Chavez considered
closing down Alunasa due to geopolitical, technical and economic
reasons, contrary to what reports said that the closure was caused
by his political spat with Costa Rican President Oscar Arias.  
President Arias had said that the special powers granted to
President Chavez were "the antithesis of democracy."  The
statement upset the Venezuelan leader, who allegedly decided to
transfer Alunasa to another nation in Central America.  He also
ordered the immediate suspension of his country's aluminum
shipments to Costa Rica.

Venezuelan President Hugo Chavez had offered to construct an
aluminum plant in Nicaragua through a joint venture, according
to reports.

"There has been a plan for three years... to relocate it [but] I
don't want to cause problems for anybody in Costa Rica,"
President Chavez told Business News Americas.

                        *    *    *

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


* BOND PRICING: For the Week February 19 to February 23, 2007
-------------------------------------------------------------

Issuer                 Coupon     Maturity   Currency   Price    
------                 ------     --------   --------   -----

ARG Boden              2.000      9/30/08      ARS    55.4274
Argent-Par             0.630     12/31/38      ARS    60.9480
Gov't of Belize        9.500      9/15/12      USD    71.9829
Gov't of Belize        9.750      6/12/15      USD    67.0000
Colombia TES           4.750      2/23/23      COP    61.9195
Vontobel Cayman       24.000      2/23/07      USD    65.6000
Vontobel Cayman       10.700     12/28/07      CHF    66.1500
Vontobel Cayman       11.850     12/28/07      CHF    69.3000
Vontobel Cayman       16.000     12/28/07      EUR    74.7000
Vontobel Cayman       16.800     12/28/07      CHF    72.1000
Vontobel Cayman       22.850     12/28/07      CHF    52.4000


                         ***********


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

Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA.  Marjorie C. Sabijon, Sheryl Joy P. Olano, Rizande
de los Santos, Christian Toledo, and Junald Ango, Editors.

Copyright 2076.  All rights reserved.  ISSN 1529-2746.

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