TCRLA_Public/070410.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Tuesday, April 10, 2007, Vol. 8, Issue 70

                          Headlines

A R G E N T I N A

AGILENT TECHNOLOGIES: Acquiring Stratagene Corp.
ARCANGEL GABRIEL: Proofs of Claim Verification Ends on May 14
ASOCIACION EDUCATIVA: Claims Verification Is Until May 21
BALLY TECHNOLOGIES: S&P Revises Outlook to Developing from Neg.
BOL CART: Trustee To Present Individual Reports on June 27

BONGOSCAR SA: Trustee To File Individual Reports in Court Tom
CABEDI SRL: Trustee Verifies Proofs of Claim Until April 16
CARYMED SA: Proofs of Claim Verification Is Until June 14
COMPANIA DE TRANSPORTE: Grupo Alusa To Bid for Citelec Stake
GUARDIANES SRL: Trustee To File General Report in Court Tomorrow

HUAYCOS TRADE: Proofs of Claim Verification Ends on May 24
IMAX CORP: Names Joseph Sparacio as Executive VP of Finance
NIETO HNOS: Proofs of Claim Verification Deadline Is May 4
PECRUMO SA: Proofs of Claim Verification Deadline Is May 23
PETROBRAS ENERGIA: Grupo Alusa To Bid for Citelec Stake

SOAYAL SRL: Proofs of Claim Verification Deadline Is May 29
SOUTH AMERICAN: Seeks Court Approval for Reorganization
TURBINE POWER: Trustee To File Individual Reports Tomorrow

B A H A M A S

HARRAH'S ENT: Stockholders Approve Merger with TPG & Apollo

B A R B A D O S

AIR JAMAICA: New Barbados & Caribbean Flights Performing Well

B E R M U D A

YAGEO HOLDING: Proofs of Claim Filing Deadline Is April 20

B O L I V I A

YPF SA: Strikers Warn of Margarita Gas Field Takeover

B R A Z I L

BANCO DO BRASIL: Enters Into Business Partnership with Secreb
BANCO ITAU: Eyes BRL55.6 Billion in Sales for Credit Card Sector
BANCO NACIONAL: Approves BRL591-Million Financing for Copasa
CENTRAIS ELETRICAS: Will Connect 60K Rural Properties to Network
METSO OYJ: Mulls Possible Delisting from NYSE

METSO OYJ: Stock Subscription Hikes Shares Capital
METSO OYJ: Acquires BEST Inc. to Boost Metal Recycling Ops
PETROLEO BRASILEIRO: Inks Supply Contract with FMC Technologies
USINAS SIDERURGICAS: Sees Demand for Products to Increase 15%
XERIUM TECHNOLOGIES: Earns US$3.2 Million in Fourth Quarter 2006

C A Y M A N   I S L A N D S

AHFP COAST: Proofs of Claim Filing Deadline Is May 3
AHFP COMBINATORICS: Proofs of Claim Filing Ends on May 3
AHFP DKR: Proofs of Claim Filing Is Until May 3
AHFP JUPITER: Proofs of Claim Filing Deadline Is May 3
AHFP KEEL: Proofs of Claim Filing Is Until May 3

AHFP LANGLADE: Proofs of Claim Filing Ends on May 3
AVALON (CAYMAN): Proofs of Claim Must be Filed by May 3
CABLE & WIRELESS: Cayman Unit Upgrading Internet Service
ENHANCED LOAN: Proofs of Claim Filing Ends on May 3
ING-ORYX CLO: Proofs of Claim Filing Deadline Is May 3

MUFFIN ASSET: Proofs of Claim Filing Is Until May 3

C H I L E

ARMSTRONG WORLD: Court Approves Settlement with Former Parent
ARMSTRONG WORLD: Earns US$2.2 Million in Fourth Quarter 2006
SHAW GROUP: Continues Services to Exelon's Nuclear Stations
SHAW GROUP: Building Dominion's Virginia Clean Coal Plant
SHAW GROUP: S&P Says BB Rating Is Unaffected by Late 10-Q Filing

C O L O M B I A

ECOPETROL: Refineria de Cartagena Starts Operating Plant
FRESENIUS MEDICAL: Moody's Assigns Loss-Given-Default Rating

E C U A D O R

GRAHAM PACKAGING: Fitch Downgrades Sr. Sec. Facility Rating to B
PETROECUADOR: Earns US$3.22 Billion in 2006
PETROECUADOR: Ends Force Majeure on Exports

E L   S A L V A D O R

SPECTRUM BRANDS: Postpones Annual Shareholders Meeting to May 9

G U A T E M A L A

BRITISH AIRWAYS: Appoints UBS to Advise on 10% Iberia Stake
BRITISH AIRWAYS: Inks Boeing Engine Contract with Rolls-Royce

J A M A I C A

GOODYEAR TIRE: Fitch Affirms Low B Ratings on US$3.65-Bil. Debts
SUGAR COMPANY: Extends Bidding for Sugar Factories to 60 Days

M E X I C O

ARROW ELECTRONICS: Good Performance Cues Fitch to Lift Ratings
BALLY TOTAL: Expands Distribution Partnership with drugstore.com
ENTRAVISION COMM: S&P Affirms B+ Long-Term Corp. Credit Rating
GENERAL MOTORS: Retail Sales Up 0.5% in First Quarter 2007
GRUPO MEXICO: Stops Search for Coal Mine Explosion Victims

VANGUARD CAR: Moody's May Downgrade Ratings After Review
VISTEON CORP.: Fitch Cuts Senior Unsecured Debt Rating to CC

P A N A M A

SOLO CUP: Posts US$373.2 Million Net Loss in Full Year 2006
SOLO CUP: Names Robert Koney as Chief Financial Officer

P E R U

DOE RUN: Workers Halt Strike at La Oroya Smelter

P U E R T O   R I C O

CENTENNIAL COMM: Reports US$39.9 Mil. Operating Income in Unit
DELTA AIR: Moody's Puts Ba2 & B2 Ratings on US$2.5B Exit Loan

U R U G U A Y

ROYAL & SUN: Agrees to Settle Student Finance Litigation

V E N E Z U E L A

CMS ENERGY: Inks Sale Agreement with Venezuelan Government
DAIMLERCHRYSLER: Chairman Confirms Talks on Likely Chrysler Sale
DAIMLERCHRYSLER: Weighs Potential Chrysler Buyers' Overhaul Plan
DAIMLERCHRYSLER: Chrysler's Worldwide Sales Fell 2.4% in Q1 2007
PETROLEOS DE VENEZUELA: Completes La Cruz Plant Maintenance

* VENEZUELA: Inks Sale Agreement with CMS Energy

* BOND PRICING: For the Week April 2 to April 6, 2007
* Large Companies with Insolvent Balance Sheets


                         - - - - -


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


AGILENT TECHNOLOGIES: Acquiring Stratagene Corp.
------------------------------------------------
Agilent Technologies Inc. has signed a definitive agreement to
purchase Stratagene Corp.

Under the terms of the agreement, each share of Stratagene
common stock will be converted into the right to receive a cash
payment of US$10.94.  The acquisition is expected to be closed
in approximately 90 days, subject to certain closing conditions.

Stratagene's products are used by scientists in academia,
government research and industry in molecular biology, genomics,
proteomics, drug discovery and toxicology.  Stratagene's
portfolio includes reagents for life science research and
instruments.  The company also offers a range of diagnostics
products, including applications for allergy testing and
urinalysis.

The acquisition of Stratagene is expected to broaden the
customer base for both Agilent Technologies and Stratagene.

"We see Stratagene's technology, products and expertise as being
highly complementary to Agilent Technologies' life sciences
portfolio, enabling us to offer our customers more complete
workflow solutions," said Nick Roelofs, vice president and
general manager of Agilent Technologies' Life Sciences Solutions
Unit.  "Stratagene has a strong Research & Development team as
well as excellent presence in the important academic and
government markets."

                   About Stratagene Corp.

Founded in 1984, Stratagene (NASDAQ:STGN)
-- http://www.stratagene.com/-- is based in La Jolla,  
California.  The company employs more than 400 employees
worldwide, who are expected to join Agilent Technologies.  Major
company locations are Garden Grove, Calif.; Cedar Creek, Texas;
Edinburgh, Scotland; Tokyo, Japan; and Amsterdam, the
Netherlands.

                About Agilent Technologies

Agilent Technologies, Inc. -- http://www.agilent.com/-- is a   
measurement company providing core bio-analytical and electronic
measurement solutions to the communications, electronics, life
sciences and chemical analysis industries.  The company has
operations in India, Argentina and Luxembourg.

                        *     *     *

Agilent Technologies Inc. carries Moody's Investors Service
'Ba1' corporate family rating.


ARCANGEL GABRIEL: Proofs of Claim Verification Ends on May 14
-------------------------------------------------------------
Luis Pedro Pereyra, the court-appointed trustee for Arcangel
Gabriel Vezzato S.A.'s bankruptcy proceeding, verifies
creditors' proofs of claim until May 14, 2007.

As reported in the Troubled Company Reporter-Latin America on
March 15, 2006, the verification of creditors' claims against
Arcangel Gabriel was set to end on April 28, 2006.

However, the National Commercial Court of First Instance in
Buenos Aires decided to move the verification deadline to
May 14.

Mr. Pereyra will present the validated claims in court as
individual reports on June 26, 2007.  The court will determine
if the verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Arcangel Gabriel and its creditors.

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

A general report that contains an audit of Arcangel Gabriel's
accounting and banking records will be submitted in court on
Aug. 22, 2007.

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

The debtor can be reached at:

          Arcangel Gabriel Vezzato S.A.
          Tucuman 1545
          Buenos Aires, Argentina

The trustee can be reached at:

          Luis Pedro Pereyra
          Avenida Roque Saenz Pena 651
          Buenos Aires, Argentina


ASOCIACION EDUCATIVA: Claims Verification Is Until May 21
---------------------------------------------------------
Jose Salem Ini, the court-appointed trustee for Asociacion
Educativa Personalizada SRL's bankruptcy proceeding, verifies
creditors' proofs of claim until May 21, 2007.

Mr. Ini will present the validated claims in court as individual
reports.  The National Commercial Court of First
Instance No. 9 in Buenos Aires, with the assistance of Clerk
No. 18, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections
and challenges that will be raised by Asociacion Educativa and
its creditors.

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

A general report that contains an audit of Asociacion
Educativa's accounting and banking records will be submitted in
court.

La Nacion did not state the date for the submission of the
reports.

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

The debtor can be reached at:

          Asociacion Educativa Personalizada SRL
          Yatay 422
          Buenos Aires, Argentina

The trustee can be reached at:

          Jose Salem Ini
          Tte. Gral. Juan D. Peron 1730
          Buenos Aires, Argentina


BALLY TECHNOLOGIES: S&P Revises Outlook to Developing from Neg.
---------------------------------------------------------------
Standard & Poor's Ratings Services revised its CreditWatch
implication on its ratings for Bally Technologies Inc. to
developing from negative.  The corporate credit rating on the
company is 'B-'.  The ratings were initially placed on
CreditWatch on Sept. 9, 2005, and several rating actions have
occurred since the original CreditWatch listing.
      
"The revision to CreditWatch with developing implications
reflects the progress made by the company to move closer to
becoming current on its SEC filings," noted Standard & Poor's
credit analyst Guido DeAscanis.  Bally Technologies is current
through the filing of its 10-K for the fiscal year ended
June 30, 2006.  In addition, based on recent company
announcements, Bally Technologies has generated good operating
results during past few quarters.
     
Developing implications suggest that ratings could be affected
either positively or negatively, depending on future events.  
The potential for a rating upgrade exists if Bally Technologies
completes the filing of all outstanding restated financial
reports and operating performance trends positively.  Should the
company continue to experience delays in the filing of its
financial reports and its access to capital is affected as a
result, a negative rating action could be considered.

Headquartered in Las Vegas, Nevada, Bally Technologies, Inc.
(NYSE: BYI) -- http://www.BallyTech.com/-- designs,
manufactures, operates, and distributes advanced gaming devices,
systems, and technology solutions worldwide.  Bally's product
line includes reel-spinning slot machines, video slots, wide-
area progressives and Class II lottery and central determination
games and platforms.  Bally Technologies also offers an array of
casino management, slot accounting, bonus, cashless, and table
management solutions.  The company also owns and operates
Rainbow Casino in Vicksburg, Miss.  The company's South American
operations are located in Argentina.  The company also has
operations in Macau, China, and India.


BOL CART: Trustee To Present Individual Reports on June 27
----------------------------------------------------------
Gerardo Miguel Seghezzo, the court-appointed trustee for Bol
Cart S.R.L.'s bankruptcy proceeding, will present creditors'
validated claims as individual reports in the National
Commercial Court of First Instance No. 3 in Buenos Aires on
June 27, 2007.

The court will determine if the verified claims are admissible,
taking into account the trustee's opinion and the objections and
challenges raised by Bol Cart and its creditors.

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

As reported in the Troubled Company Reporter-Latin America on
March 13, 2007, the trustee verifies creditors' proofs of claim
until May 14, 2007.  

The court will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections
and challenges raised by Bol Cart and its creditors.

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

Mr. Seghezzo will also submit a general report that contains an
audit of Bol Cart's accounting and banking records on
Sept. 27, 2007.  

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

Clerk No. 6 assists the court in the proceeding.

The debtor can be reached at:

          Bol Cart SRL
          L. de la Torre 2353
          Buenos Aires, Argentina

The trustee can be reached at:

          Gerardo Miguel Seghezzo
          Combate de los Pozos 129
          Buenos Aires, Argentina


BONGOSCAR SA: Trustee To File Individual Reports in Court Tom
-------------------------------------------------------------
Ruben L. Kwasniewski, the court-appointed trustee of Bongoscar
S.A.'s reorganization proceeding, will present creditors'
validated claims as individual reports in the National
Commercial Court of First Instance in Buenos Aires on
April 11, 2007.

The court will determine if the verified claims are admissible,
taking into account the trustee's opinion and the objections and
challenges raised by Bongoscar and its creditors.

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

Mr. Kwasniewski verified creditors' proofs of claim until
Feb. 28, 2007.

Mr. Kwasniewski will also submit to court a general report
containing an audit of Bongoscar's accounting and banking
records on May 24, 2007.

The informative assembly will be held on Oct. 31, 2007.  
Creditors will vote to ratify the completed settlement plan
during the assembly.

The trustee can be reached at:

          Ruben L. Kwasniewski
          Montevideo 536
          Buenos Aires, Argentina


CABEDI SRL: Trustee Verifies Proofs of Claim Until April 16
-----------------------------------------------------------
Humberto Zibarelli, the court-appointed trustee for Cabedi
S.R.L.'s reorganization proceeding, verifies creditors' proofs
of claim until April 16, 2007.

The National Commercial Court of First Instance in San Luis
approved a petition for reorganization filed by Cabedi,
according to a report from Argentine daily Infobae.

Mr. Zibarelli will present the validated claims in court as
individual reports.  The court will determine if the verified
claims are admissible, taking into account the trustee's
opinion, and the objections and challenges that will be raised
by Cabedi and its creditors.

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

A general report that contains an audit of Cabedi's accounting
and banking records will be submitted in court.

Infobae did not state the reports submission deadlines.

The informative assembly will be held on Feb. 14, 2008.
Creditors will vote to ratify the completed settlement plan
during the assembly.

The debtor can be reached at:

          Cabedi S.R.L.
          Pringles 1224
          Ciudad de San Luis
          San Luis, Argentina

The trustee can be reached at:

          Humberto Zibarelli
          25 de Mayo 651
          Ciudad de San Luis
          San Luis, Argentina


CARYMED SA: Proofs of Claim Verification Is Until June 14
---------------------------------------------------------
Bernardino Margolis, the court-appointed trustee for Carymed
S.A.'s bankruptcy proceeding, verifies creditors' proofs of
claim until June 14, 2007.

Mr. Margolis will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance in Buenos Aires will determine if the verified claims
are admissible, taking into account the trustee's opinion, and
the objections and challenges that will be raised by Carymed and
its creditors.

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

A general report that contains an audit of Carymed's accounting
and banking records will be submitted in court.

Infobae did not state the date for the submission of the
reports.

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

The trustee can be reached at:

          Bernardino Margolis
          Parana 426
          Buenos Aires, Argentina


COMPANIA DE TRANSPORTE: Grupo Alusa To Bid for Citelec Stake
------------------------------------------------------------
Brazilian power transmission firm Grupo Alusa has made a rival
bid to acquire all or part of a 50% controlling stake in
Argentine company Citelec from Brazil's state-run oil firm
Petroleo Brasileiro SA, or Petrobras, an Alusa executive said on
March 30.

Citelec controls Argentine power transporter company Transener
SA.  Petrobras, due to Argentine anti-trust regulations, is
obliged to sell its stake in Citelec.  Argentina's government
made the sale of the Petrobras stake in Citelec a prerequisite
for Petrobras' 2003 purchase of Argentine energy conglomerate
Perez Companc.

Yet Argentina's anti-trust agency in February rejected an
earlier purchase bid by U.S. investment fund Eton Park Capital
Management.

"We started informal talks with Petrobras in December, and by
now have made a firm offer for the stake," Guilherme Godoy,
Alusa's international director, said during a phone interview.

Mr. Godoy added that Alusa may be teaming up with an Argentine
company for the acquisition, but said he couldn't give the name
of that firm.  Also, Godoy didn't reveal the amount of the
offer.

Petrobras now has to decide to whom it will sell its stake in
Citelec, Godoy said.

Petrobras' Argentine unit earlier this month had said it has
agreed to sell its stake in Citelec to Argentina's state-run
energy firm Enarsa and local power company Electroingenieria.

When Argentina's antitrust regulator last month rejected the
Eton bid, it gave Petrobras 45 days to sell it to another buyer.

Citelec SA owns 52.67% of Transener.

The other half of Citelec is controlled by Grupo Dolphin, part
of Argentine energy fund Pampa Holding SA. Dolphin purchased
that stake from the U.K.'s National Grid PLC in 2004. Pampa
Holdings said it is aware of Alusa's rival bid for Petrobras'
stake in Citelec.

                      About Transener

Compania de Transporte de Energia Electrica en Alta Tension aka
Transener owns the national network of high-voltage power
transmission lines, which consist of nearly 8,800 kilometers of
lines together with the approximately 5,500 kilometers in its
Transba subsidiary's network.

                        *     *     *

As reported in the Troubled Company Reporter on Dec. 5, 2006,
Standard & Poor's Ratings Services assigned its 'B' rating to
the proposed bond for up to US$250 million to be issued by
Argentina's largest power transmission company, Compania de
Transporte de Energia Electrica en Alta Tension Transener SA.
At the same time, Standard & Poor's affirmed the 'B' corporate
credit rating on the company.  S&P said the outlook is stable.


GUARDIANES SRL: Trustee To File General Report in Court Tomorrow
----------------------------------------------------------------
Yolanda Tello de Candussi, the court-appointed trustee for
Guardianes S.R.L.'s reorganization proceeding, will submit to
court a general report containing an audit of the company's
accounting and banking records on April 11, 2007.

Ms. Tello de Candussi verified creditors' proofs of claim until
Nov. 15, 2006.  She then presented the validated claims in court
as individual reports on Feb. 7, 2007.  The National Commercial
Court of First Instance in San Miguel de Tucuman determined the
verified claims' admissibility, taking into account the
trustee's opinion and the objections and challenges raised by
Guardianes and its creditors.

Guardianes' creditors will vote on a settlement plan that the
company will lay on the table on Oct. 24, 2007.

          Guardianes S.R.L.
          Barrio La Pila, Delfin Gallo
          Ingenio La Esperanza, Dpto. Cruz Alta
          Tucuman, Argentina

The trustee can be reached at:

          Yolanda Tello de Candussi
          Uruguay 328
          Buenos Aires, Argentina


HUAYCOS TRADE: Proofs of Claim Verification Ends on May 24
----------------------------------------------------------
Mario Hrasnansky, the court-appointed trustee for Huaycos Trade
SA's bankruptcy proceeding, verifies creditors' proofs of claim
until May 24, 2007.

Mr. Hrasnansky will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 9 in Buenos Aires, with the assistance of Clerk
No. 18, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections
and challenges that will be raised by Huaycos Trade and its
creditors.

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

A general report that contains an audit of Huaycos Trade's
accounting and banking records will be submitted in court.

La Nacion did not state the date for the submission of the
reports.

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

The debtor can be reached at:

          Huaycos Trade SA
          Ramon Freire 3561
          Buenos Aires, Argentina

The trustee can be reached at:

          Mario Hrasnansky
          Viamonte 1785
          Buenos Aires, Argentina


IMAX CORP: Names Joseph Sparacio as Executive VP of Finance
-----------------------------------------------------------
IMAX Corp. has appointed Joseph Sparacio to the position of
Executive Vice President of Finance.  Mr. Sparacio is expected
to assume the duties of Chief Financial Officer in May, and will
be based in the company's New York office where he will report
to IMAX co-Chairmen and co-CEOs Richard L. Gelfond and Bradley
J. Wechsler.  Edward MacNeil, who currently serves as the
company's Interim Chief Financial Officer, will continue in a
senior financial role based in the company's Toronto office.
    
"Joe is a seasoned veteran with in-depth knowledge of the
entertainment industry and with experience and expertise in
managing core financial functions within a dynamic environment,
as indicated by his long and successful career to date," said
IMAX co-Chairmen and co-CEOs Richard L. Gelfond and Bradley J.
Wechsler.  "We strongly believe that Joe is the right person to
lead our financial team and will serve us well in 2007 and
beyond."
    
Since June 2002, Mr. Sparacio served as Senior Vice President
and Chief Financial Officer for the programming company iN
Demand L.L.C.  From 1998 to 2002, Mr. Sparacio served as Vice
President of Finance and Controller for Loews Cineplex
Entertainment Corp.  From 1994 to 1998 Mr. Sparacio served as
Vice President, Finance and Controller of Loews Theatre
Management Corp., and from 1990 to 1994 he served as Controller.  
Prior to joining Loews, Mr. Sparacio spent eight years with
Ernst & Young.  Mr. Sparacio is a certified public accountant
and is a member of the American Institute of Certified Public
Accountants and the New York State Society of Certified Public
Accountants.
    
Messrs. Gelfond and Wechsler continued, "This appointment also
gives us the opportunity to express our gratitude to our
colleague Ed MacNeil, who has been serving as IMAX's interim CFO
over the course of the past six months.  Ed has demonstrated an
outstanding level of commitment and leadership during a
challenging period, and we look forward to his continuing
contributions as he works with Joe in multiple areas."

IMAX Corp. (NASDAQ:IMAX; TSX:IMX)  -- http://www.imax.com/--  
founded in 1967 and headquartered jointly in New York City and
Toronto, Canada, is an entertainment technology company, with
particular emphasis on film and digital imaging technologies
including 3D, post-production, and digital projection.  IMAX
also designs and manufactures cameras, projectors and
consistently commits significant funding to ongoing research and
development.  The IMAX Theatre Network currently consists of
more than 270 IMAX affiliated theatres in 38 countries including
Argentina, Ecuador, Guatemala, Mexico and Colombia.

                        *     *     *

As reported in the Troubled Company Reporter on April 03, 2007,
Moody's Investors Service placed the ratings of IMAX Corp.
on review for downgrade based on the company's disclosure on
March 29, 2007 that it would further delay filing of its Form
10-K for fiscal 2006, resulting in a technical default under the
financial reporting covenant within the indentures of its senior
notes.

These are the rating actions:

   * IMAX Corporation

      -- Corporate family rating, placed on review for possible
         downgrade, currently B3

      -- Probability of default rating, placed on review for
         possible downgrade, currently B3

      -- Senior unsecured bonds, placed on review for possible
         downgrade, currently Caa1

      -- Outlook, changed to rating under review from stable.


NIETO HNOS: Proofs of Claim Verification Deadline Is May 4
----------------------------------------------------------
Luis P. Pereyra, the court-appointed trustee for Nieto Hnos.
S.A. I.C.F.I.A.G. y F.'s bankruptcy proceeding, verifies
creditors' proofs of claim until May 4, 2007.

Mr. Pereyra will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance in Buenos Aires will determine if the verified claims
are admissible, taking into account the trustee's opinion, and
the objections and challenges that will be raised by Nieto Hnos.
and its creditors.

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

A general report that contains an audit of Nieto Hnos.'s
accounting and banking records will be submitted in court.

Infobae did not state the date for the submission of the
reports.

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

The trustee can be reached at:

          Luis P. Pereyra
          Avenida Roque Saenz Pena 651
          Buenos Aires, Argentina


PECRUMO SA: Proofs of Claim Verification Deadline Is May 23
-----------------------------------------------------------
Andrea Isabel Sita, the court-appointed trustee for Pecrumo
S.A.'s bankruptcy proceeding, verifies creditors' proofs of
claim until May 23, 2007.

As reported in the Troubled Company Reporter-Latin America on
June 10, 2004, Pecrumo began reorganization proceedings after
the National Commercial Court of First Instance No. 1 in Buenos
Aires, with assistance from Clerk No. 2, granted its petition
for "concurso preventivo."  Otto Reinaldo Munch was appointed as
trustee.

However, the court converted Pecrumo's reorganization case into
bankruptcy.

Ms. Sita will present the validated claims in court as
individual reports.  The court will determine if the verified
claims are admissible, taking into account the trustee's
opinion, and the objections and challenges that will be raised
by Pecrumo and its creditors.

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

A general report that contains an audit of Pecrumo's accounting
and banking records will be submitted in court.

Infobae did not state the date for the submission of the
reports.

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

The trustee can be reached at:

          Andrea Isabel Sita
          Cramer 2175
          Buenos Aires, Argentina


PETROBRAS ENERGIA: Grupo Alusa To Bid for Citelec Stake
-------------------------------------------------------
Brazilian power transmission firm Grupo Alusa has made a rival
bid to acquire all or part of a 50% controlling stake in
Argentine company Citelec from Brazil's state-run oil firm
Petroleo Brasileiro SA, or Petrobras, an Alusa executive said on
March 30.

Citelec controls Argentine power transporter company Transener
SA.  Petrobras, due to Argentine anti-trust regulations, is
obliged to sell its stake in Citelec. Argentina's government
made the sale of the Petrobras stake in Citelec a prerequisite
for Petrobras' 2003 purchase of Argentine energy conglomerate
Perez Companc.

Yet Argentina's anti-trust agency in February rejected an
earlier purchase bid by U.S. investment fund Eton Park Capital
Management.

"We started informal talks with Petrobras in December, and by
now have made a firm offer for the stake," Guilherme Godoy,
Alusa's international director, said during a phone interview.

He added that Alusa may be teaming up with an Argentine company
for the acquisition, but said he couldn't give the name of that
firm. Also, Godoy didn't reveal the amount of the offer.

Petrobras now has to decide to whom it will sell its stake in
Citelec, Godoy said.

Petrobras' Argentine unit earlier this month had said it has
agreed to sell its stake in Citelec to Argentina's state-run
energy firm Enarsa and local power company Electroingenieria.

When Argentina's antitrust regulator last month rejected the
Eton bid, it gave Petrobras 45 days to sell it to another buyer.

Citelec SA owns 52.67% of Transener.

The other half of Citelec is controlled by Grupo Dolphin, part
of Argentine energy fund Pampa Holding SA. Dolphin purchased
that stake from the U.K.'s National Grid PLC in 2004. Pampa
Holdings said it is aware of Alusa's rival bid for Petrobras'
stake in Citelec.

                  About Petrobras Energia

Headquartered in Buenos Aires, Argentina, Petrobras Energia SA
is a 75.8% owned affiliate of Petrobras Energia Participaciones
SA0 and an indirect 67.2% owned affiliate of Petroleo Brasileiro
SA.  Petrobas Electric is engaged in petroleum exploration and
production, refining, marketing, petrochemicals and electric
power generation.  The Petrobras unit acquired its Transener
stake when it took over Argentine company Perez Compac in 2003.
Argentine antitrust regulators obligated Petrobras to divest its
Transener stake, citing government concerns that the country's
biggest power transporter would be in foreign hands.

                       *    *    *

As reported on Jan. 4, 2007, Fitch Argentina Calificadora de
Riesgo affirmed these ratings assigned to Petrobras Energia:

   -- international currency: B+
   -- local currency: BB-
   -- unsecured senior debt: B+


SOAYAL SRL: Proofs of Claim Verification Deadline Is May 29
-----------------------------------------------------------
Mauricio Mudric, the court-appointed trustee for Soayal S.R.L.'s
bankruptcy proceeding, verifies creditors' proofs of claim until
May 29, 2007.

Mr. Mudric will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance in Buenos Aires will determine if the verified claims
are admissible, taking into account the trustee's opinion, and
the objections and challenges that will be raised by Soayal and
its creditors.

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

A general report that contains an audit of Soayal's accounting
and banking records will be submitted in court.

Infobae did not state the date for the submission of the
reports.

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

The trustee can be reached at:

          Mauricio Mudric
          Tucuman 893
          Buenos Aires, Argentina


SOUTH AMERICAN: Seeks Court Approval for Reorganization
-------------------------------------------------------
South American Cargo SA has filed a petition for reorganization
before the National Commercial Court of First Instance No. 13 in
Buenos Aires, after failing to pay its liabilities since
Feb. 6, 2007.

The reorganization petition, once approved by the court, will
allow South American to negotiate a settlement with its
creditors in order to avoid a straight liquidation.

Clerk No. 26 assists on this case.

The debtor can be reached at:

          South American Cargo SA
          Avenida Presidente Roque Saenz Pena 868
          Buenos Aires, Argentina


TURBINE POWER: Trustee To File Individual Reports Tomorrow
----------------------------------------------------------
Estudio Waisberg-Knoll, the court-appointed trustee for Turbine
Power Co. SA's reorganization proceeding, will present
creditors' validated claims as individual reports in the
National Commercial Court of First Instance in Buenos Aires on
April 11, 2007.

The court will determine if the verified claims are admissible,
taking into account the trustee's opinion and the objections and
challenges raised by Turbine Power and its creditors.

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

Estudio Waisberg-Knoll verified creditors' proofs of claim until
Feb. 23, 2007.

Estudio Waisberg-Knoll will also submit to court a general
report containing an audit of Turbine Power's accounting and
banking records on June 8, 2007.

On Nov. 23, 2007, Power Turbine 's creditors will vote on a
settlement plan that the company will lay on the table.

The trustee can be reached at:

          Estudio Waisberg-Knoll
          Avenida Cordoba 1237
          Buenos Aires, Argentina




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


HARRAH'S ENT: Stockholders Approve Merger with TPG & Apollo
-----------------------------------------------------------
Harrah's Entertainment Inc.'s stockholders approved the merger
and merger agreement with affiliates of Texas Pacific Group or
TPG and Apollo Management L.P. at a special meeting recently
held.  

Based upon the preliminary tally of shares voted, 66% of total
shares outstanding voted in favor of the transaction.  Subject
to satisfaction of all regulatory approvals and other customary
closing conditions, Harrah's Entertainment expects the
transaction to be completed by the end of the year.

Under the terms of the agreement, Harrah's Entertainment's
stockholders will receive US$90.00 in cash for each outstanding
share.

In addition, Harrah's Entertainment's affiliate Harrah's License
Company LLC has executed a non-binding letter of intent to form
a digital publishing alliance with Bluff Media LLC for online
and radio coverage of all World Series of Poker-branded events
or WSOP on a global basis.

The letter of intent, which is subject to execution of a
definitive agreement, calls for Bluff Media to be designated the
official digital publisher and radio partner of the WSOP, the
WSOP Circuit, WSOP Europe and other WSOP events.  Bluff will
operate http://www.worldseriesofpoker.comand provide broadband,
streaming and real-time content, including chip counts, live
event updates and video and audio news programs and features.

"Bluff shares our vision for bringing WSOP content to every
medium that matters," said Jeffrey Pollack, commissioner of the
World Series of Poker.  "Over the next four years, this alliance
will help us connect with our players and fans in new and
exciting ways, and further increase the value and relevancy of
our global brand."

"We believe the consolidation of digital-publishing rights under
this agreement will lead to a more cohesive, integrative and
compelling product for poker fans around the globe," said Eddy
Kleid, co-president of Bluff Media.

                About Harrah's Entertainment

Headquartered in Las Vegas, Nevada, Harrah's Entertainment, Inc.
(NYSE: HET) -- http://www.harrahs.com/-- is a gaming
corporation that owns and operates casinos, hotels, and five
golf courses under several brands on four continents.  The
company's properties operate primarily under the Harrah's,
Caesars and Horseshoe brand names; Harrah's also owns the London
Clubs International family of casinos.  In January, it signed a
joint venture agreement with Baha Mar Resorts Ltd. to operate a
resort in Bahamas.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 16, 2007, Fitch Ratings may downgrade Harrah's
Entertainment Inc.'s aka HET Issuer Default Rating into the 'B'
category from its current 'BB+' rating based on the planned
capital structure for its leveraged buyout or LBO by Apollo
Management and Texas Pacific Group, which was outlined in its
preliminary proxy statement (filed Feb. 8, 2006).

As reported in the Troubled Company Reporter on Dec. 26, 2006,
Standard & Poor's Ratings Services lowered its ratings on
Harrah's Entertainment Inc. and its subsidiary Harrah's
Operating Co. Inc., including its corporate credit rating to
'BB' from 'BB+.




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


AIR JAMAICA: New Barbados & Caribbean Flights Performing Well
-------------------------------------------------------------
Air Jamaica Vice President of Sales, George de Mercado, told
Amsterdam News that the airline's new flight schedule for the
Barbados and the Eastern Caribbean routes is exceeding
expectations.

Air Jamaica's new non-stop daily flights between New York and
Barbados, with continuing service to St. Lucia and Grenada is
delivering good returns, after the Caribbean Airlines decided to
halt its Barbados-New York route, Amsterdam News notes, citing
Mr. de Mercado.

Mr. de Mercado told Amsterdam News, "The loyalty demonstrated by
West Indians and visitors alike has been extremely encouraging,
and our business throughout the Spring break and Easter holiday
season has been rock solid."

As reported in the Troubled Company Reporter-Latin America on
March 1, 2007, Air Jamaica President and Chief Executive Officer
Michael Conway said that the airline could increase its 28
weekly flights into Barbados.  Air Jamaica's management is
reviewing and revising the airline's operations.  

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

                        *     *     *

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




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


YAGEO HOLDING: Proofs of Claim Filing Deadline Is April 20
----------------------------------------------------------
Yageo Holding International Ltd.'s creditors are given until
April 20, 2007, to prove their claims to Jennifer Y. Fraser, the
company's liquidator, or be excluded from receiving any
distribution or payment.

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

Yageo Holding's shareholders agreed on March 30, 2007, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.

The liquidator can be reached at:

         Jennifer Y. Fraser
         Canon's Court, 22 Victoria Street
         Hamilton, Bermuda




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


YPF SA: Strikers Warn of Margarita Gas Field Takeover
-----------------------------------------------------
Protesters have threatened to occupy Margarita, the Bolivian
natural gas field of YPF SA's parent firm Repsol, Reuters
reports.

Protest leader Jorge Montello told a Bolivian radio station,
"We've decided to seize control of the Margarita field, it will
be a peaceful occupation... groups of people are on their way
there."

Reuters relates that the strikers want a share of Bolivia's
revenue from the field.  They want the government to endorse
their claim that the Margarita field is in the O'Connor
province.

However, leaders in the Gran Chaco region claim that the field
is under their jurisdiction, Reuters notes.

The report says that 45% of the state revenue from the field
will go to the province where it is situated.  The field has
proven and probable natural gas reserves of around 11 trillion
cubic feet, or 25% of the total gas reserves in Bolivia.

Repsol runs the field and holds a 37.5% stake in the project.  
British Gas owns a 37.5% stake.  Argentina's Pan American Energy
has a 25% share.  Repsol promised to invest heavily to boost the
field's output capacity, Reuters states.

                        About Repsol

Repsol YPF, S.A. is an integrated oil and gas company engaged in
all aspects of the petroleum business, including exploration,
development and production of crude oil and natural gas,
transportation of petroleum products, liquefied petroleum gas
and natural gas, petroleum refining, petrochemical production
and marketing of petroleum products, petroleum derivatives,
petrochemicals and natural gas.  The company operates in four
segments: Exploration and Production, Refining and Marketing,
Chemicals, and Gas and Electricity.  

                         About YPF SA

Headquartered in Buenos Aires, Argentina, YPF S.A. (YPF) is an
integrated oil and gas company engaged in the exploration,
development and production of oil and gas, natural gas and
electricity-generation activities (upstream), the refining,
marketing, transportation and distribution of oil and a range of
petroleum products, petroleum derivatives, petrochemicals and
liquid petroleum gas (LPG) (downstream).  The company is a
subsidiary of Repsol YPF, S.A., a Spanish company engaged in oil
exploration and refining, which holds 99.04% of its shares.  Its
international operations are conducted through its subsidiaries,
YPF International S.A. and YPF Holdings Inc.

                        *     *     *

Fitch Ratings assigned BB+ long-term issuer default rating on
YPF SA.  Fitch said the outlook is stable.

Moody's Investors Service assigned these ratings on YPF SA:

          -- B2 long-term foreign currency corporate family
             rating; and

          -- Ba2 foreign currency senior unsecured rating;

Moody's said the outlook is negative.




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


BANCO DO BRASIL: Enters Into Business Partnership with Secreb
-------------------------------------------------------------
Antonio Bizzo, Banco do Brasil's foreign trade department
manager, told Business News Americas that Brazilian exporters
can use export credit policies from export credit insurer Secreb
as guarantees for post-embarkation export funding from Banco do
Brasil.

BNamericas relates that Secreb is controlled by Ciac -- an
international insurance consortium of:

          -- Spain's credit insurer Cesce,
          -- Germany's reinsurer Munich Re, and
          -- Spain's BBVA and Santander.

Banco do Brasil has the same accord with Seguradora Brasileira
de Credito a Exportacao.  It expects to have another similar
agreement before the end of 2007, BNamericas says, citing Mr.
Bizzo.

Mr. Bizzo commented to BNamericas, "The credit insurance segment
was always really small, but it's been growing.  The startup of
export credit insurance operations by Spain's Mapfre and Credito
y Caucion proves there's interest and potential.  We've had
conversations with some credit insurers.  We don't plan to work
with them all, but it's probable we'll enter another
partnership, maybe in second quarter 2007."

Banco do Brasil will provide US$12 billion in export financing
in 2007, virtually the same with 2006, BNamericas states, citing
Mr. Bizzo.

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

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 20, 2007, Fitch Ratings upgraded Banco do Brasil S.A.'s
Support rating to '3' from '4', and affirmed its other ratings:

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


BANCO ITAU: Eyes BRL55.6 Billion in Sales for Credit Card Sector
----------------------------------------------------------------
Banco Itau Holding Financeira SA expects that sales in Brazil's
credit card industry will increased 18.3% to BRL55.6 billion in
the first four months of 2007, compared to the same period in
2006, Business News Americas reports.

BNamericas relates that credit card sales in April 2007 will
rise 18.1% to BRL13.8 billion, from the same month in 2006.  
Transactions will total 597 million, with an average sale price
of BRL91.00, as the number of cards in circulation reaches 79.9
million by the end of April 2007.  Credit card transactions
totaled 534 million in the same period in 2006, with 67.8
million cards in circulation.

Banco Itau sees credit card sales volume to grow 20% in 2007,
compared to 2006.  Sales volume increased 23% to BRL157 billion
in 2006, compared to 2005, BNamericas states.

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.


BANCO NACIONAL: Approves BRL591-Million Financing for Copasa
------------------------------------------------------------
Minas Gerais state water and sewage firm Copasa said in a press
release that Banco Nacional de Desenvolvimento Economico e
Social has authorized a BRL591-million financing package for the
company in the form of debentures.

Business News Americas relates that the funds raised will be
used to fund part of Copasa's investment program through 2010.  

About BRL450 million of the BRL591 million will be in the form
of nonconvertible debentures maturing in 12 years.  Some BRL141
million will be in debentures convertible to shares after one
year or with half their value redeemable in five years and the
other half in six years, BNamericas states.

                       About Copasa

Copasa runs 585 water concessions in Minas Gerais, Brazil.  It
has licenses to operate in 611.  The company provides sewage
treatment services in 90 municipalities, but has licenses to
operate in 180.

                   About Banco Nacional

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

                        *     *     *

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


CENTRAIS ELETRICAS: Will Connect 60K Rural Properties to Network
----------------------------------------------------------------
The Brazilian mines and energy ministry said in a statement that
Centrais Eletricas Matogrossenses S.A. aka Cemat will connect
60,000 rural properties to its power network by the end of 2008
to complete the Light for All power supply program in Mato
Grosso.

Business News Americas relates that Light for All is a federally
sponsored program aimed at connecting rural properties in poor
regions to the power distribution network.  Federal power
holding company Eletrobras helps subsidize the program.  The
Light for All program aims to connect seven million people in
poor rural areas to the network by the end of next year.

Cemat connected about 34,000 rural properties.  This year the
firm aims to connect 30,000 properties and in 2008, another
30,000, BNamericas relates, citing the ministry.

According to BNamericas, Mato Grosso Deputy Governor Silval
Barbosa met with Cemat officials and Deputy Mines and Energy
Minister Nelson Hubner to discuss power distribution and
expansion plans.  

Mr. Barbosa asked the federal government and Cemat to accelerate
studies and launch the construction of the Paranatinga-Vila Rica
transmission line, BNamericas states.

Centrais Eletricas Matogrossenses S.A., a subsidiary of Rede
Empresas de Energia Eletrica SA, is an electricity generation
and distribution company that serves the state of Mato Grosso
that has a population of 2.7 million inhabitants.  It currently
serves 772,890 clients.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
March 30, 2007, Fitch maintained the Local and Foreign Currency
Issuer Default Ratings of 'B' and the national scale ratings of
'BBB(bra)' on Centrais Eletricas Matogrossenses S.A. or Cemat.  
Fitch also holds these ratings for Rede Empresas de Energia
Eletrica S.A. (Cemat's parent) and another subsidiary, Centrais
Eletricas do Para S.A. or Celpa.  Fitch said all ratings have  
stable rating outlook.


METSO OYJ: Mulls Possible Delisting from NYSE
---------------------------------------------
The Board of Directors of Metso Oyj has decided to evaluate the
possible deregistration and delisting of Metso's shares from the
New York Stock Exchange in view of the revisions to the U.S.
Securities Exchange Act of 1934 published by the U.S. Securities
and Exchange Commission on March 27, 2007, which will take
effect in early June 2007.

Metso Corporation's Board of Directors will decide on the matter
later this year after having completed the evaluation.

Irrespective of the final decision on the matter, Metso intends
to continue to develop its business operations in the United
States and its strong relationship with American investors.

In 2006, Metso's financial reporting systems were fully
compliant with the Section 404 of the U.S. Sarbanes-Oxley Act,
and the company intends to maintain its high standard of
corporate governance, financial reporting and ongoing disclosure
for all investors.

                           About Metso

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

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

                        *    *    *

As of Feb. 9, Metso Oyj carries Standard & Poor's 'BB+' long-
term and 'B' short-term corporate credit ratings and 'BB' senior
unsecured debt rating.


METSO OYJ: Stock Subscription Hikes Shares Capital
--------------------------------------------------
A total of 35,000 shares in Metso Corp. have been subscribed for
with the 2003A stock options during a period of Feb. 8 to
March 15, 2007.

The nominal value of one share is EUR1.70.  As a result of share
subscriptions, the increase in the share capital, EUR59,500.00
has been entered into the Trade Register on March 29, 2007.

After this increase, the company's share capital is EUR240.98
million and the total number of shares is 141,754,614.
Dividend rights of the new shares and other shareholder rights
shall commence from the registration date March 29, 2007.

The shares have been applied for listing on the Helsinki Stock
Exchange together with the old shares as of March 30, 2007.

                           About Metso

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

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

                        *    *    *

As of Feb. 9, Metso Oyj carries Standard & Poor's 'BB+' long-
term and 'B' short-term corporate credit ratings and 'BB' senior
unsecured debt rating.


METSO OYJ: Acquires BEST Inc. to Boost Metal Recycling Ops
----------------------------------------------------------
Metso Corp. has acquired Bulk Equipment Systems and Technologies
Inc.  The company is a technology provider to the North American
metal recycling market and it is located in Cleveland, Ohio.

The sellers are a group of private investors.  The acquisition
price is approximately EUR9 million.  The company was
transferred to Metso on March 30, 2007.

BEST Inc. is a leading supplier of shredder downstream
equipment, as well as process control and optimization
technologies in North America.  It owns engineering and
manufacturing facility with a technical test laboratory in
Cleveland.  The firm posted net sales of EUR8 million in 2006.
It employs approximately 40 people.

With the acquisition, Metso Minerals further strengthens its
position in the North American metal recycling market, which is
the largest in the world.  The process control know-how of BEST
Inc. will upgrade Metso's offering not only in North America,
but also in Asia and Europe.

                           About Metso

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

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

                        *    *    *

As of Feb. 9, Metso Oyj carries Standard & Poor's 'BB+' long-
term and 'B' short-term corporate credit ratings and 'BB' senior
unsecured debt rating.


PETROLEO BRASILEIRO: Inks Supply Contract with FMC Technologies
---------------------------------------------------------------
US-based sub sea oil equipment supplier FMC Technologies said in
a statement that it signed a contract with Brazilian state-owned
oil firm Petroleo Brasileiro SA for the supply of two gas
manifolds for the development of Campos basin fields off
southeast Brazil.

According to FMC Technologies' statement, the contract should
generate about US$52 million for the company.  Delivery is in
2008.

Business News Americas relates that the manifolds will be
manufactured at FMC Technologies facilities in Rio de Janeiro,
Brazil.  They will be installed in the Albacora Leste and
Roncador fields in the Campos basin.

The report says that the two fields have heavy crude oil
reserves.  Petroleo Brasileiro wants to boost natural gas output
from the deepwater Campos basin fields under its Plangas
program.

The BRL28-billion program is aimed at increasing natural gas
supply in the southeastern region of Brazil to 40 million cubic
meters per day by the end of 2008, from 15 million cubic meters
per day, BNamericas states.

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

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

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

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

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


USINAS SIDERURGICAS: Sees Demand for Products to Increase 15%
-------------------------------------------------------------
Usinas Siderurgicas de Minas Gerais SA expects that demand for
its products will increase 15% in the first quarter 2007,
compared to the same quarter in 2006, due to the strong
performance of the automobile sector, news agency AE-Setorial
reports.

Business News Americas relates that Usinas Siderurgicas could
make shipments of about two million tons in the first three
months of 2007, of which 76% would be focused on Brazil.  

According to BNamericas, Usinas Siderurgicas' sales volume was
1.95 million tons in the first quarter 2006, of which 62% was
focused on Brazil.

The demand from segments like machinery and equipment, household
appliances and civil construction, could also bring in positive
results for Usinas Siderurgicas, AE-Setorial states.

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

The Troubled Company Reporter - Asia Pacific reported on
Jan. 3, 2007, that Standard & Poor's Ratings Services revised
its outlook on Brazil-based steelmaker Usinas Siderurgicas de
Minas Gerais S.A., aka Usiminas, to positive from stable.
Standard & Poor's also said that it affirmed its 'BB+' local and
foreign currency corporate credit ratings on Usiminas.


XERIUM TECHNOLOGIES: Earns US$3.2 Million in Fourth Quarter 2006
----------------------------------------------------------------
Xerium Technologies Inc. reported net income of US$3.2 million
in the fourth quarter ended Dec. 31, 2006, compared with net
income of US$10 million for the fourth quarter of 2005.  

Charges, on an after tax basis, affecting fourth quarter 2006
net income included environmental expense of US$3.1 million,
Sarbanes-Oxley compliance costs of US$1 million and
restructuring and impairment expenses of US$2.6 million.  

Net sales increased to US$154.6 million in the fourth quarter of
2006, a 6.9% increase from US$144.6 million for the fourth
quarter of 2005.  

Net cash provided by operating activities was US$24.6 million
for the fourth quarter of 2006, compared to US$28.2 million in
the same quarter last year.
    
Cash on hand at Dec. 31, 2006 was US$16.8 million, compared to
US$60 million at Dec. 31, 2005.

Thomas Gutierrez, chief executive officer of Xerium
Technologies, said, "We were pleased with our top-line growth
during the fourth quarter of 2006, both sequentially and on a
year-over-year basis.  Our clothing business generated solid
sequential sales growth in most regions, with particular
strength in Europe, while our roll covers business also had
another strong sales quarter.

Capital expenditures for the fourth quarter of 2006 were
US$8.1 million, compared to US$14.4 million for the fourth
quarter of 2005.  Approximately US$3.5 million of capital
expenditures in 2006's fourth quarter were directed toward
projects designed to support the company's growth objectives,
with the remaining US$4.6 million used to sustain the company's
existing operations and facilities.

Net sales for 2006 were US$601.4 million, a 3.3% increase from
US$582.4 million for 2005.  

Net income was US$29.5 million for 2006, compared to a net loss
of US$2.1 million for 2005.  

Net cash provided by operating activities was US$69.2 million
for 2006, compared to US$54.7 million in 2005.  Net cash
provided by operating activities for 2005 reflects IPO-related
expenditures of US$20.7 million.

At Dec. 31, 2006, the company's balance sheet showed
US$990.7 million in total assets, US$874.1 million in total
liabilities, and US$116.6 million in total stockholders' equity.

Full-text copies of the company's consolidated financial
statements for the year ended Dec. 31, 2006, are available for
free at http://researcharchives.com/t/s?1cac
    
                 About Xerium Technologies

Headquartered in Wesborough, Massachusetts, Xerium Technologies,
Inc. -- http://xerium.com/-- manufactures and supplies two  
types of products used primarily in the production of paper:
clothing and roll covers.  The company operates under a variety
of brand names and owns a broad portfolio of patented and
proprietary technologies to provide customers with tailored
solutions and products, designed to optimize performance and
reduce operational costs.  With 35 manufacturing facilities in
15 countries, including Austria, Brazil and Japan, Xerium
Technologies has approximately 3,900 employees.

Headquartered in Westborough, Massachusetts, Stowe Woodward, a
unit of Xerium Technologies, Inc., supplies roll covers, bowed
rolls and manufacturing services for the pulp and paper
industry.  Stowe Woodward has manufacturing operations around
the world.

                          *     *     *

Moody's Investors Service changed the outlook on Xerium
Technologies, Inc.'s ratings to negative from stable, and
affirmed the company's corporate family rating at B1.  The
change in outlook to negative reflects Xerium's weaker than
expected operating performance primarily due to production
inefficiencies in North America and delays in achieving benefits
from cost reduction initiatives.  Moody's believes the impact of
these issues, coupled with a difficult pricing environment for
roll covers and to a lesser extent clothing products, will
continue to negatively affect operating performance over the
intermediate term.

Affirmed ratings are:

     * Corporate family rating; B1
     * Guaranteed senior secured term loan B; B1
     * Guaranteed senior secured revolving credit facility; B1




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


AHFP COAST: Proofs of Claim Filing Deadline Is May 3
----------------------------------------------------
AHFP Coast's creditors are given until May 3, 2007, to prove
their claims to Dwight Dube and Richard Gordon, the company's
liquidators, or be excluded from receiving any distribution or
payment.

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

AHFP Coast's shareholders agreed on March 19, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidators can be reached at:

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


AHFP COMBINATORICS: Proofs of Claim Filing Ends on May 3
--------------------------------------------------------
AHFP Combinatorics creditors are given until May 3, 2007, to
prove their claims to Dwight Dube and Richard Gordon, the
company's liquidators, or be excluded from receiving any
distribution or payment.

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

AHFP Combinatorics shareholders agreed on March 19, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

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


AHFP DKR: Proofs of Claim Filing Is Until May 3
-----------------------------------------------
AHFP DKR QS creditors are given until May 3, 2007, to prove
their claims to Dwight Dube and Richard Gordon, the company's
liquidators, or be excluded from receiving any distribution or
payment.

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

AHFP DKR's shareholders agreed on March 19, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidators can be reached at:

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


AHFP JUPITER: Proofs of Claim Filing Deadline Is May 3
------------------------------------------------------
AHFP Jupiter's creditors are given until May 3, 2007, to prove
their claims to Dwight Dube and Richard Gordon, the company's
liquidators, or be excluded from receiving any distribution or
payment.

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

AHFP Jupiter's shareholders agreed on March 19, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

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


AHFP KEEL: Proofs of Claim Filing Is Until May 3
------------------------------------------------
AHFP Keel's creditors are given until May 3, 2007, to prove
their claims to Dwight Dube and Richard Gordon, the company's
liquidators, or be excluded from receiving any distribution or
payment.

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

AHFP Keel's shareholders agreed on March 19, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidators can be reached at:

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


AHFP LANGLADE: Proofs of Claim Filing Ends on May 3
---------------------------------------------------
AHFP Langlade's creditors are given until May 3, 2007, to prove
their claims to Dwight Dube and Richard Gordon, the company's
liquidators, or be excluded from receiving any distribution or
payment.

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

AHFP Langlade's shareholders agreed on March 19, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

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


AVALON (CAYMAN): Proofs of Claim Must be Filed by May 3
-------------------------------------------------------
Avalon (Cayman) Ltd.'s creditors are given until May 3, 2007, to
prove their claims to Chris Marett and Emile Small, the
company's liquidators, or be excluded from receiving any
distribution or payment.

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

Avalon's shareholders agreed on March 21, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidators can be reached at:

          Chris Marett
          Emile Small
          Maples Finance Limited
          P.O. Box 1093
          George Town, Grand Cayman
          Cayman Islands


CABLE & WIRELESS: Cayman Unit Upgrading Internet Service
--------------------------------------------------------
Cable & Wireless (Cayman Islands) Ltd., a unit of Cable &
Wireless, is improving its Broadband ADSL service without any
additional cost to its subscribers, Caymanian Compass reports.

Anthony Ritch, Cable & Wireless (Cayman Islands) Vice President
of Broadband and Voice, commented to Caymanian Compass, "It was
very important for us to distinguish between our residential and
business services and by adding three plans to the scope of
business plans we are more able provide the necessary services
to best meet our business client's needs."

A Cable & Wireless (Cayman Islands) press release says that
broadband clients will enjoy faster connection speeds.  The
Cable & Wireless residential entry-level plan provides 512
kilobits per second download speeds for US$40 per month.  The
top ADSL business plan now delivers download speeds of four
kilobits per second.

Caymanian Compass underscores that the service, depending on
client demands, speeds up downloading of documents, programs,
games, photographs, and music.  It will also lead to increased
productivity related to Web-server and E-mail communications.  

Mr. Ritch told Caymanian Compass, "We are very confident that
our existing and new customers will see the value in these new
plans.  We are very proud to be able to offer our customers
these enhanced benefits at no extra cost.  Our last broadband
upgrade took place in 2005 and we felt that to meet the demands
of our customers that it was time to further enhance the
service.  In all, seven new plans have been introduced."

According to Caymanian Compass, residential broadband
subscribers can choose from four plans.  The speed of the lowest
plan has been doubled, while the speed of the other three plans
have been increased by up to 50%.  Residential clients may not
choose any contract plans.  The new plans are for those who
don't want to sign a contract as well those who may only spend a
portion of the year in the Cayman Islands.  E-mail storage has
been increased to 25 megabytes, from 10 megabytes.  Other
services include free Hot-spot Access, and all existing features
of Cable & Wireless' service.

Caymanian Compass emphasizes that broadband plans for business
subscribers have been increased to three, from one.  Other than
speed increases, all business plans include:

          -- a wireless modem,
          -- DNS hosting to provide an identity on the Web, and
          -- a static Internet Protocol address, which will
             allow hosting of Web and E-mail servers.

Cable & Wireless (Cayman Islands) will also offer at a small
cost the Broadband Security Suite with features like firewall
and content filtering to guarantee the protection of home and
office PC systems, Caymanian Compass states.

Headquartered in London, Cable & Wireless PLC --
http://www.cw.com/new/-- provides voice, data and IP (Internet
Protocol) services to business and residential customers, as
well as services to other telecoms carriers, mobile operators
and providers of content, applications and Internet services.
Its principal operations are in the United Kingdom, continental
Europe, Asia, the Caribbean, Panama and the Middle East.

                        *     *     *

Cable & Wireless Plc carries these ratings:

    * Moody's Investors Service

      -- Long-Term Corporate Family Rating: Ba3
      -- Senior Unsecured Debt: B1
      -- Short-Term: NP
      -- Outlook: Negative

    * Standard & Poor's

      -- Long-Term Foreign Issuer Credit Rating: BB-
      -- Long-Term Local Issuer Credit Rating: BB-
      -- Short-Term Foreign Issuer Credit Rating: B
      -- Short-Term Local Issuer Credit Rating: B
      -- Outlook: Negative


ENHANCED LOAN: Proofs of Claim Filing Ends on May 3
---------------------------------------------------
Enhanced Loan Facility I, Ltd.'s creditors are given until
May 3, 2007, to prove their claims to Chris Marett and Emile
Small, the company's liquidators, or be excluded from receiving
any distribution or payment.

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

Enhanced Loan's shareholders agreed on March 21, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

          Chris Marett
          Emile Small
          Maples Finance Limited
          P.O. Box 1093
          George Town, Grand Cayman
          Cayman Islands


ING-ORYX CLO: Proofs of Claim Filing Deadline Is May 3
------------------------------------------------------
Ing-Oryx CLO, Ltd.'s creditors are given until May 3, 2007, to
prove their claims to Cleveland Stewart and Emile Small, the
company's liquidators, or be excluded from receiving any
distribution or payment.

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

Ing-Oryx CLO's shareholders agreed on March 12, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

          Cleveland Stewart
          Emile Small
          Maples Finance Limited
          P.O. Box 1093
          George Town, Grand Cayman
          Cayman Islands


MUFFIN ASSET: Proofs of Claim Filing Is Until May 3
---------------------------------------------------
Muffin Asset Finance, Corp.'s creditors are given until
May 3, 2007, to prove their claims to Steven O'Connor and Emile
Small, the company's liquidators, or be excluded from receiving
any distribution or payment.

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

Muffin Asset's shareholders agreed on March 12, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

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




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


ARMSTRONG WORLD: Court Approves Settlement with Former Parent
-------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware approved
Armstrong World Industries, Inc.'s settlement with its former
parent Armstrong Holdings, Inc.

Prior to the effective date of AWI's Fourth Amended Plan of
Reorganization dated Feb. 1, 2006, AHI owned all of the stock of
Armstrong Worldwide Inc., which in turn owned all of the stock
of AWI.  All AWI stock owned by AHI was cancelled upon AWI's
emergence from Chapter 11 protection on Oct. 2, 2006.

Under the settlement, AHI will receive about US$22,000,000 in
cash, plus 98,697 shares of reorganized AWI common stock worth
about US$5,000,000 based on the closing price on March 30.  AHI
believes the proceeds will not be subject to federal or state
income taxes.

AWI will be entitled, for the periods during which it was
affiliated with AHI, to file on behalf of both companies all
federal and state income tax returns that are required to be
filed on a consolidated or combined basis, and to make all
related tax elections and receive all related tax refunds.

AHI previously announced that it would realize a substantial tax
loss from the cancellation of the company's former stock
ownership in AWI pursuant to AWI's Chapter 11 Plan.  Because the
settlement gives AWI the authority to make all related tax
elections for the companies' consolidated or combined federal
and state income tax returns for 2006, including the choice
among different carry back and carry forward elections, AHI does
not know at this time what tax loss carry forward it might have
available for post-2006 tax years.

AWI's Reorganization Plan contemplates that AHI would dissolve
following AWI's emergence from Chapter 11 on Oct. 2, 2006.  
Since that date, AHI has conducted no business, and has no
operations and no employees.

The Board of Directors of AHI plans to evaluate what future
action is in the best interests of the corporation, including
the issue of dissolution and an evaluation of its assets,
obligations and prospective tax position after giving effect to
the settlement.  If a dissolution is authorized, it would be
submitted to shareholders for approval and, if approved, a
distribution to shareholders of AHI's net assets would be
effected as soon as practicable thereafter.  The dissolution
process would involve a number of steps, such as noticing any
potential claimants, resolving any viable claims and obtaining
tax clearance from the Commonwealth of Pennsylvania.

AWI's Chapter 11 Plan provides that AWI will pay the reasonable
costs of AHI's dissolution, assuming the AHI's Board and
shareholders determine to pursue that course.

                         About Armstrong

Based in Lancaster, Pennsylvania, Armstrong World Industries,
Inc. -- http://www.armstrong.com/-- designs and manufactures  
floors, ceilings and cabinets.  AWI operates 42 plants in 12
countries and employs approximately 14,200 people worldwide.

The company has operations in Australia, Brazil, Chile, Hong
Kong, Malaysia, Singapore, Taiwan, Philippines, Poland,
Portugal, Hungary, United Kingdom, among others.

The company and its affiliates filed for chapter 11 protection
on December 6, 2000 (Bankr. D. Del. Case No. 00-04469).
StephenKarotkin, Esq., at Weil, Gotshal & Manges LLP, and
Russell C.Silberglied, Esq., at Richards, Layton & Finger, P.A.,
represented 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.


ARMSTRONG WORLD: Earns US$2.2 Million in Fourth Quarter 2006
------------------------------------------------------------
Armstrong World Industries Inc. reported net earnings of
US$2.2 million on net sales of US$817.3 million for the fourth
quarter ended Dec. 31, 2006, compared with net earnings of
US$50.9 million on net sales of US$805.5 million for the same
period in 2005.  

Reported operating income from continuing operations increased
to US$16.5 million in the fourth quarter of 2006 from a US$10.1
million loss in the fourth quarter of 2005.  

For the full year ending Dec. 31, 2006, net sales were
US$3.4 billion compared to US$3.3 billion reported for 2005.  
The sales growth was due to improved price and product mix on
modestly declining volume.  All segments grew sales except
Resilient Flooring.  Net income in 2006, which includes
reorganization income of US$1,955.5 million as a result of the
company's emergence from Chapter 11 in the fourth quarter of
2006, was US$1,358 million, compared with net income of US$111.1
million in 2005.

Reported operating income for 2006 was US$210.8 million compared
to operating income of US$101.1 million for the same period in
2005.

Cost of goods sold in 2006 was 78.5% of net sales, compared to
79.7% in 2005.  This reduction was the result of benefits from
higher selling prices, primarily in Building Products, better
manufacturing performance, mainly in the Resilient and Wood
Flooring businesses, and improvement from sales volume and mix.
Cost of goods sold in 2006 also benefited from a larger U.S.
pension plan credit. These factors more than offset raw
material, energy and freight inflation across all businesses.  

SG&A expenses in 2006 were US$561 million, or 16.4% of net sales
compared to US$590 million or 17.7% of net sales in 2005.  The
US$29 million decrease was realized despite higher revenue and
included the benefit from a larger U.S. pension plan credit.
Resilient and Wood Flooring and Cabinets reduced spending, while
Building Products grew at less than the rate of growth in
revenue.

Equity earnings, primarily from the WAVE ceiling grid joint
venture with Worthington Industries, were US$46.7 million in
2006, as compared to US$39.3 million in 2005.  Interest expense
was US$18.6 million in 2006, compared to US$7.7 million in 2005.  

The company did not record contractual interest expense on
prepetition debt during the company's Chapter 11 proceedings.  
This unrecorded interest expense was US$57.6 million in 2006 and
US$82.8 million in 2005.  Unrecorded interest expense reflects
the amount of interest expense the company would have incurred
under the original maturities of prepetition debt.  Included in
the US$18.6 million interest expense in 2006 was US$12.2 million
from debt incurred as part of emerging from Chapter 11.

Other non-operating income of US$11.5 million in 2006 compared
to US$11.8 million in the prior year.  The 2005 results included
a US$3.4 million gain on the sale of the company's equity
investment in Interface Solutions Inc.

Net Chapter 11 reorganization income in 2006 was US$1,955.5
million compared to US$1.2 million of income recorded in 2005.  
2005 income primarily resulted from income on cash balances and
a reversal of an accrual for professional fees for certain
advisors.

The US$1,955.5 million reorganization income is composed of:

  Gain from discharge of liabilities
     subject to compromise                   US$1,510.8 million
  Gain from fresh-start reporting               459.9 million
  Interest Income, post-Filing                   15.0 million
  Professional Fees                             (30.2 million)
                                             ----------------
     Total                                   US$1,955.5 million
                                             ================    

During 2006, income tax expense of US$730.4 million compared to
income tax benefit of US$1.2 million in 2005.  The effective tax
rate for 2006 as reported was 33.8%.  The 2005 tax rate was
lower than 2006 primarily due to certain one-time benefits
recorded during 2005 of approximately US$61.2 million related to
a subsidiary capital restructuring.

The company's balance sheet at Dec. 31, 2006, showed
US$4,170.7 million in total assets, US$2,006 million in total
liabilities, and US$2,164.7 million in total stockholders'
equity.

Full-text copies of the company's consolidated financial
statements for the year ended Dec. 31, 2006, are available for
free at http://researcharchives.com/t/s?1cbc

                 About Armstrong World Industries

Armstrong World Industries Inc. -- http://www.Armstrong.com/--  
is a global leader in the design and manufacture of floors,
ceilings and cabinets.  Based in Lancaster, Pa., Armstrong
operates 42 plants in 12 countries and has approximately 14,000
employees worldwide.  

Armstrong World has operations in Australia, Brazil, Chile, Hong
Kong, Malaysia, Singapore, Taiwan, Philippines, Poland,
Portugal, Hungary, United Kingdom, among others.

On Dec. 6, 2000, the company filed a voluntary petition for
relief under Chapter 11 of the U.S. Bankruptcy Code in order to
use the court-supervised reorganization process to achieve a
resolution of AWI's asbestos-related liability.  On Oct. 2,
2006, AWI's plan of reorganization, as confirmed by the U.S.
District Court for the District of Delaware by order dated Aug.
18, 2006, became effective, and AWI emerged from Chapter 11.

                          *     *     *

As reported in the Troubled Company Reporter on March 13, 2007,
Standard & Poor's Ratings Service revised its outlook to
developing from stable for Armstrong World Industries Inc.  At
the same time, Standard & Poor's affirmed the 'BB' corporate
credit and senior secured ratings for the Lancaster,
Pennsylvania-based company.


SHAW GROUP: Continues Services to Exelon's Nuclear Stations
-----------------------------------------------------------
The Shaw Group Inc.'s Shaw Stone & Webster business unit has
been awarded a maintenance and modifications services contract
to provide management and craft labor services for Exelon
Generation Co. LLC's fleet of nuclear stations located in New
Jersey, Pennsylvania and Illinois.  Exelon Generation is a
subsidiary of Exelon Corp.  The maintenance and modification
services to be provided through 2011 may also include pipe
fabrication and construction services, as may be requested by
Exelon Generation.  The value of the Shaw Generation's contract
is up to approximately US$700 million.

J.M. Bernhard, Jr., Chairman, President and Chief Executive
Officer of Shaw Group, said, "We are very pleased to have been
selected by Exelon to continue to provide maintenance and
modification services to its nuclear fleet.  This latest
maintenance and modifications services contract strengthens our
leadership position in the nuclear maintenance and modifications
market.  This award also validates the success of our commitment
to safety, standardized work practices, and our ability to
complete a wide range of nuclear maintenance work to meet
nuclear outage schedules.  We look forward to continuing to
identify creative, effective solutions that benefit our
clients."

Headquartered in Baton Rouge, LA, The Shaw Group Inc.
(NYSE: SGR) -- http://www.shawgrp.com/-- is a global provider    
of services to  the environmental, infrastructure and homeland
security markets, including consulting, engineering,
construction, remediation and facilities management services to
governmental and commercial customers.  It is also a vertically
integrated provider of engineering, procurement, pipe
fabrication, construction and maintenance services to the power
and process industries.  The company segregates its business
activities into four operating segments: Environmental &
Infrastructure (E&I); Energy & Chemicals (E&C); Maintenance, and
Fabrication, Manufacturing & Distribution (F&M).  In January
2005, the company sold substantially all of the assets of its
Shaw Power Technologies Inc. and Shaw Power Technologies
International, Ltd. units to Siemens Power Transmission and
Distribution Inc., a unit of Siemens AG.

The company has operations in Chile, China, Malaysia, the United
Kingdom and, Venezuela, among others.

                        *     *     *

Standard & Poor's Ratings Services recently said that the
ratings and outlook on Shaw Group Inc (BB/Stable/--) are not
immediately affected by the company's announcement that the
filing of its second-quarter 10-Q will be delayed by 45 to 90
days and that Shaw Group is likely to restate previously
reported results.  

As reported in the Troubled Company Reporter-Latin America on
March 16, 2007, Standard & Poor's Ratings Services affirmed its
'BB' corporate credit rating on The Shaw Group Inc. and removed
it from CreditWatch, where it was placed with negative
implications in Oct. 2006.  The outlook is stable.

In addition, 'BB' senior secured debt rating was affirmed after
the USUS$100 million increase to the company's revolving credit
facility.


SHAW GROUP: Building Dominion's Virginia Clean Coal Plant
---------------------------------------------------------
The Shaw Group Inc. has been awarded an engineering, procurement
and construction or EPC contract by Dominion for a new 585
Megawatt electricity generating plant in southwest Virginia.  
The new plant will incorporate clean coal technologies and two
circulating fluidized bed or CFB boilers supplying steam to a
single steam turbine generator.  The EPC contract will be
executed in two phases.  The first phase involves design
optimization, engineering, major equipment selection, and
finalization of the project cost estimate.  Upon a successful
development phase and necessary state and regulatory approvals,
Shaw Group expects to continue with the second phase, including
all of the engineering, procurement, and construction
activities.  Based on current projections, the new facility
would be in commercial operation by the summer of 2012.  The
value of Shaw Group's contract was not disclosed.

J.M. Bernhard, Jr., Chairman, President and Chief Executive
Officer of Shaw Group, said, "We are very pleased to have been
selected by Dominion to design, engineer and construct this new
clean-energy technology plant which will be capable of using
run-of-mine coal, waste coal, and renewable biomass (wood waste)
fuels to generate power in an environmentally sound and cost-
effective process.  Using CFB technology, Dominion's new plant
would be one of the cleanest of its type in the world and will
provide economical energy to Dominion's customers."

                       About Dominion

Dominion is one of the United States' largest producers of
energy, with a portfolio of about 26,300 megawatts of
generation, about 6.6 trillion cubic feet equivalent of proved
natural gas reserves and 7,800 miles of natural gas transmission
pipeline.  Dominion also operates one of the nation's largest
underground natural gas storage systems with about 950 billion
cubic feet of storage capacity and serves retail energy
customers in 11 states.

                      About Shaw Group

Headquartered in Baton Rouge, LA, The Shaw Group Inc.
(NYSE: SGR) -- http://www.shawgrp.com/-- is a global provider    
of services to  the environmental, infrastructure and homeland
security markets, including consulting, engineering,
construction, remediation and facilities management services to
governmental and commercial customers.  It is also a vertically
integrated provider of engineering, procurement, pipe
fabrication, construction and maintenance services to the power
and process industries.  The company segregates its business
activities into four operating segments: Environmental &
Infrastructure (E&I); Energy & Chemicals (E&C); Maintenance, and
Fabrication, Manufacturing & Distribution (F&M).  In January
2005, the company sold substantially all of the assets of its
Shaw Power Technologies Inc. and Shaw Power Technologies
International, Ltd. units to Siemens Power Transmission and
Distribution Inc., a unit of Siemens AG.

The company has operations in Chile, China, Malaysia, the United
Kingdom and Venezuela among others.

                        *     *     *

Standard & Poor's Ratings Services recently said that the
ratings and outlook on Shaw Group Inc (BB/Stable/--) are not
immediately affected by the company's announcement that the
filing of its second-quarter 10-Q will be delayed by 45 to 90
days and that Shaw Group is likely to restate previously
reported results.  

As reported in the Troubled Company Reporter-Latin America on
March 16, 2007, Standard & Poor's Ratings Services affirmed its
'BB' corporate credit rating on The Shaw Group Inc. and removed
it from CreditWatch, where it was placed with negative
implications in October 2006.  S&P said the outlook is stable.

In addition, 'BB' senior secured debt rating was affirmed after
the US$100 million increase to the company's revolving credit
facility.


SHAW GROUP: S&P Says BB Rating Is Unaffected by Late 10-Q Filing
----------------------------------------------------------------
Standard & Poor's Ratings Services said that the ratings and
outlook on Shaw Group Inc. (BB/Stable/--) are not immediately
affected by the company's announcement that the filing of its
second-quarter 10-Q will be delayed by 45 to 90 days and that
Shaw Group is likely to restate previously reported results.  

The delay is due to cost increases on a modest-sized
petrochemical project that the company estimates could result in
US$12 million of additional charges likely to be applied to the
fiscal first-quarter of 2007 or, possibly, fiscal 2006.  In
addition, the company indicated its second-quarter results would
show some softness.

Based on preliminary information, the shortfall does not appear
significant enough to immediately affect the ratings.  Standard
& Poor's will monitor developments with regard to both the
filing of financial statements and operating performance to
determine if there is any effect on credit quality.

Headquartered in Baton Rouge, LA, The Shaw Group Inc.
(NYSE: SGR) -- http://www.shawgrp.com/-- is a global provider    
of services to  the environmental, infrastructure and homeland
security markets, including consulting, engineering,
construction, remediation and facilities management services to
governmental and commercial customers.  It is also a vertically
integrated provider of engineering, procurement, pipe
fabrication, construction and maintenance services to the power
and process industries.  The company segregates its business
activities into four operating segments: Environmental &
Infrastructure (E&I); Energy & Chemicals (E&C); Maintenance, and
Fabrication, Manufacturing & Distribution (F&M).  In January
2005, the company sold substantially all of the assets of its
Shaw Power Technologies Inc. and Shaw Power Technologies
International, Ltd. units to Siemens Power Transmission and
Distribution Inc., a unit of Siemens AG.

The company has operations in Chile, China, Malaysia, the United
Kingdom and, Venezuela, among others.




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


ECOPETROL: Refineria de Cartagena Starts Operating Plant
--------------------------------------------------------
Colombian state-run oil firm Ecopetrol told Business News
Americas that the Refineria de Cartagena, its joint venture with
Swiss resources group Glencore, has started operating the
Cartagena plant.

According to BNamericas, Ecopetrol will continue running,
maintaining and managing Cartagena until an expansion is
launched in 2010.  Refineria de Cartagena will conduct the plan
to expand, retrofit and upgrade the plant.

Revamp works on Cartagena involved increasing plant capacity to
140,000 barrels per day from 80,000 barrels per day, Ecopetrol
told BNamericas.

Ecopetrol is an integrated-oil company that is wholly owned by
the Colombian government.  The company's activities include
exploration for and production of crude oil and natural gas, as
well as refining, transportation, and marketing of crude oil,
natural gas and refined products.  Ecopetrol is Latin America's
fourth-largest integrated-oil concern.  Operations are organized
into Exploration & Production, Refining & Marketing,
Transportation, and International Commerce & Gas.

On June 27, 2006, Fitch Ratings revised the rating outlook of
the long-term foreign currency issuer default rating of
Ecopetrol SA to Positive from Stable.  This rating action
follows the recent revision in the Rating Outlook to Positive
from Stable of the 'BB' foreign currency IDR of the Republic of
Colombia.  Ecopetrol's IDR remain strongly linked with the
credit profile of the Republic of Colombia.


FRESENIUS MEDICAL: Moody's Assigns Loss-Given-Default Rating
------------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the existing non-financial speculative-grade
corporate issuers in Europe, Middle East and Africa last week,
the rating agency confirmed its Ba2 Corporate Family Rating for
Fresenius Medical Care AG & KGaA.

The implementation of the LGD methodology in EMEA follows the
introduction of the methodology in September 2006.  Most of the
rating actions Moody's confirmed relate to senior secured loans.

* Issuer: Fresenius Medical Care AG & KGaA

                                                      Projected
                           Old POD  New POD  LGD      Loss-Given
   Debt Issue              Rating   Rating   Rating   Default
   ----------              -------  -------  ------   -------
   Senior Unsecured
   Bank Credit Facility    Ba2      Ba1     LGD3       32%

* Issuer: Fresenius Medical Care Capital Trust II

                           Old POD  New POD  LGD     Loss Given
   Debt Issue              Rating   Rating   Rating  Default
   ----------              -------  -------  ------  -------
   US$450-million
   Preferred Stock
   Due 2008                B1       B1      LGD6     92%

* Issuer: Fresenius Medical Care Capital Trust III

                            Old POD  New POD  LGD     Loss-Given
   Debt Issue               Rating   Rating   Rating  Default
   ----------               -------  -------  ------  -------
   DEM300-million
   Preferred Stock      
   Due 2008                  B1       B1      LGD6      92%


* Issuer: Fresenius Medical Care Capital Trust IV

                            Old POD  New POD  LGD     Loss-Given
   Debt Issue               Rating   Rating   Rating  Default
   ----------               -------  -------  ------  -------

   US$225-million
   Preferred Stock
   Due 2011                 B1       B1     LGD6      92%

* Issuer: Fresenius Medical Care Capital Trust V

                            Old POD  New POD  LGD     Loss-Given
   Debt Issue               Rating   Rating   Rating  Default
   ----------               -------  -------  ------  -------
   EUR300-million
   Preferred Stock
   Due 2011                 B1       B1      LGD6      92%

Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating
methodology will also enhance the consistency in Moody's
notching practices across industries and will improve the
transparency and accuracy of Moody's ratings as Moody's research
has shown that credit losses on bank loans have tended to be
lower than those for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's
opinion of expected loss are expressed as a percent of principal
and accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%)
to LGD6 (loss anticipated to be 90% to 100%).

                        About Fresenius

Headquartered in Bad Homburg, Germany, Fresenius Medical Care AG
-- http://www.fmc-ag.com/-- provides products and services for  
individuals undergoing dialysis because of chronic kidney
failure, a condition that affects more than 1,300,000
individuals worldwide.  Through its network of around 1,645
dialysis clinics in North America, Europe, Latin America, Asia-
Pacific and Africa, Fresenius Medical Care provides dialysis
treatment to around 128,200 patients around the globe.
Fresenius AG holds around 37% of Fresenius Medical Care AG & Co.
KgaA's capital.  In Latin America, Fresenius Medical has
operations in Argentina, Brazil, Colombia, Chile, Mexico and
Venezuela.




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


GRAHAM PACKAGING: Fitch Downgrades Sr. Sec. Facility Rating to B
----------------------------------------------------------------
Fitch Ratings has downgraded Graham Packaging Company, L.P.'s
senior secured first-lien credit facility to 'B/RR3' from
'B+/RR2'.  Ratings on the senior secured second-lien facility
were withdrawn.  In addition, Fitch affirmed the following
ratings on Graham Packaging and its subsidiary GPC Capital Corp.
I:

   -- Issuer default rating (IDR) 'B-';
   -- Senior unsecured notes 'CCC+/RR5';
   -- Senior subordinated notes 'CCC/RR6'.

The Rating Outlook is Stable.  Approximately US$2.5 billion of
debt is covered by the ratings.

On April 3, 2007, Graham Packaging announced fiscal 2006 results
and the arrangement of new term loans through a third amendment
under its 2004 credit agreement. The new loans increase the
existing senior secured first-lien term loan B by US$305 million
from US$1,570 million to US$1,875 million.  Proceeds were used
to pay off US$250 million of the second-lien term loan C, pay
down US$50 million of the revolver, and US$5 million of
associated fees and expenses.

The downgrade of the senior secured credit facility reflects
Fitch's expectations for reduced recovery prospects in a
distressed scenario given the additional US$300 million of
first-lien financing which reduces the anticipated recovery rate
for this class to the 'RR3' category (51%-70% recovery) from the
'RR2' category (71%-90% recovery).  Although total secured debt
outstanding does not change materially, and leverage through the
bank debt remains in the mid-4 times multiple range, the risk to
the first-lien class has changed given the larger amounts
outstanding and no significant change in estimated estate value
available for distribution in a distressed scenario.  The lower
recovery prospects and reduced junior debt outstanding as
cushion are key considerations.

There are a few modest positives for the company stemming from
the new financing. The new covenant package is somewhat less
restrictive and reduces the likelihood the company will trip
covenants.  The interest coverage test was eliminated, the total
leverage ratio test was changed to a net senior leverage ratio
test, and the mandatory prepayment clause was waived for fiscal
2006.  Graham Packaging anticipates annual savings of more than
US$5 million in interest expense by paying off the term loan C.  
While the revised covenants provide Graham with greater
flexibility, from a creditor's perspective there are fewer
protections under the new terms, further justifying the one-
notch downgrade.

Graham Packaging's current ratings reflect leading market shares
across its product categories, strong customer relationships,
on-site integration with many customers, investment in
proprietary technology, and favorable product packaging trends
toward plastics.

Rating concerns include high leverage, typically negative free
cash flow, resin price volatility, customer concentration, the
risk of customer vertical integration, and moderate or declining
sales growth in three out of four product categories.

The Stable Outlook reflects the relatively steady demand in
Graham Packaging's key end markets, including the food and
beverage markets. The Outlook benefits from Graham Packaging's
positive free cash generation in 2006.

Graham Packaging's 2006 results trended lower than expected.  
Although revenue grew 1.9% with system wide container unit
volumes up 3.7%, gross margin continued to contract, falling 50
basis points year-over-year to 10.9%.  While gross profit was
positively impacted by volume growth, raw material inflation and
price erosion offset these gains.  Loss of pricing power and
continued margin erosion are key concerns that will be monitored
going forward.

Favorably, the company reported positive free cash flow in 2006
of US$72.4 million versus negative US$137.6 million prior year,
as capital spending was reduced by nearly US$70 million and
working capital was a US$104 million source of funds compared to
a US$55 million use prior year.

The EBITDA calculation used in determining covenant compliance
includes significant adjustments for non-recurring items,
project start-up costs, and certain costs related to acquisition
integration.  For fiscal 2006 the company reported covenant
compliance EBITDA of US$418.2 million yielding senior net
leverage of about 4.5x compared to the new requirement of 5.5x
under the revised credit agreement.  Total gross leverage was
6.1x at year-end.

Fitch estimates liquidity as of Dec. 31, 2006, adjusted for the
amended credit agreement, of about US$260 million, consisting of
US$13 million in cash and an estimated US$246 million in
revolver availability.  Debt maturities are modest in the next
several years.

Graham Packaging Company, L.P., an operating company, is a
leading manufacturer of plastic packaging and containers. Graham
Packaging and its subsidiary, GPC Capital Corp. I, are co-
issuers and co-obligors on all outstanding debt.  Graham
Packaging is owned by Graham Packaging Holdings, a private
holding company whose primary asset is its 100% direct ownership
of Graham.  Holdings is a guarantor on all indebtedness.  
Holdings is in turn majority owned by The Blackstone Group.

Fitch's Recovery Ratings (RR) are a relative indicator of
creditor recovery prospects on a given obligation within an
issuers' capital structure in the event of a default.  A broad
overview of Fitch's RR methodology as it relates to specific
sectors can be found at http://www.fitchratings.com/recovery

Headquartered in York, Pennsylvania, Graham Packaging Co. Inc.
-- http://www.grahampackaging.com/-- designs, manufactures and  
sells technology-based, customized blow-molded plastic
containers for the branded food and beverage, household,
personal care/specialty, and automotive lubricants product
categories.  The Company currently operates 88 plants worldwide.
In Latin America, the company has operations in Argentina,
Brazil, Ecuador, Mexico and Venezuela.  The Blackstone Group of
New York is the majority owner of Graham Packaging.


PETROECUADOR: Earns US$3.22 Billion in 2006
-------------------------------------------
Ecuador's state-run oil firm Petroecuador said in a statement
that it made profits of US$3.22 billion in 2006.

Business News Americas relates that crude and derivative exports
plus domestic fuel sales that totaled US$7.11 billion had the
most significant contribution to Petroecuador's bottom line.

According to BNamericas, about US$3.7 billion was from exports,
while US$2.3 billion was from sales to the domestic market.  The
difference represents revenue from oil pipeline services and the
minor sales of crude to the Ecuadorian market.

BNamericas underscores that Petroecuador's overall revenue in
2005 was US$2.3 billion.  

The report says that higher oil prices and the expropriation of
US oil firm Occidental Petroleum's block 15 contract in May 2006
could be responsible for the boost in last year's revenue.

Petroecuador's operational costs totaled US$3.79 billion in
2007, BNamericas states.

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: Ends Force Majeure on Exports
-------------------------------------------
Ecuadorian state-owned oil firm Petroecuador said in a statement
that it has declared an end to the force majeure on exports,
after the restart of operations on block 18.

As reported in the Troubled Company Reporter-Latin America on
April 3, 2007, indigenous demonstrations made Petroecuador
declared force majeure for its crude oil exports.  Force majeure
means that Petroecuador wouldn't be able to ensure the provision
of oil to its international customers as is set by the
contracts.  Petroecuador said that due to weeks of protests in
the Orellana province, it had to decrease its oil exports by at
least 36,000 barrels daily.  The protests obstructed oil output
in the Amazon region.

Business News Americas relates that Petrobras Energia, block
18's operator, reached an agreement with the protestors.

Petroecuador told BNamericas that exports will continue at a
normal rate.  The firm receives 54% of block 18 production.

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


SPECTRUM BRANDS: Postpones Annual Shareholders Meeting to May 9
---------------------------------------------------------------
Spectrum Brands Inc. has been changed the date of the annual
shareholders meeting from April 25 to May 9 at 8:00 a.m.  The
meeting will be held at Spectrum Brands' headquarters in 601
Rayovac Drive, Madison, Wisconsin.
          
The record date for determination of shareholders remains
March 27, 2007.

In addition, Spectrum Brands had appointed Amy J. Yoder, a
veteran sales, marketing and operations executive, as Executive
Vice President, Home & Garden.  In this new position, Ms. Yoder
will be responsible for the company's US$675 million Home &
Garden business segment, comprising branded consumer products in
the lawn and plant growth, weed and insect control and insect
repellent markets.  She will report to David R. Lumley,
President Global Batteries & Personal Care and Home & Garden,
and Co-Chief Operating Officer.

Ms. Yoder, 40, who most recently served as Vice President and
General Manager of Chemtura Corp.'s Consumer Products Division,
joined Spectrum Brands on April 2.  Her background includes more
than 15 years experience in the consumer products and
agribusiness industries, having served in a variety of
leadership positions with Chemtura, Nufarm Americas, United Agri
Products, Monsanto and E.I. DuPont de Nemours.

"We are delighted to bring Amy's extensive marketing and
management experience and skills to the company at a critical
point in the execution of our strategic plans for Home &
Garden," commented David Jones, Spectrum Brands Chairman and
CEO.  "I expect that Amy's strong operational knowledge of the
industry, coupled with her outstanding leadership skills, will
immediately add value and accelerate the process of driving top
line growth and strengthening operational efficiency in this
important business segment."

"I am extremely excited to be joining Spectrum Brands, with its
solid portfolio of leading consumer product brands," said Ms.
Yoder.  "The Home & Garden business' category-leading brands and
strong retail relationships are a terrific platform upon which
to strengthen our market position, achieve operational
excellence and create value for shareholders."

Headquartered in Atlanta, Georgia, Spectrum Brands (NYSE: SPC)
-- http://www.spectrumbrands.com/-- is a consumer products
company and a supplier of batteries and portable lighting, lawn
and garden care products, specialty pet supplies, shaving and
grooming and personal care products, and household insecticides.
Spectrum Brands' products are sold by the world's top 25
retailers and are available in more than one million stores in
120 countries around the world.  The company operates in 13
Latin American nations including El Salvador, Guatemala, Costa
Rica, Colombia and Nicaragua.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
April 2, 2007, Standard & Poor's Ratings Services assigned its
loan and recovery ratings to Spectrum Brands Inc.'s planned
US$1.6 billion senior secured bank financing, which includes a
US$1.55 billion first-lien term loan B and a US$50 million
first-lien letter of credit facility both maturing in 2013.  The
facilities are rated 'CCC+' (at the same level as the corporate
credit rating of Spectrum Brands) with a recovery rating of '2',
indicating the expectation of substantial (80% to 100%) recovery
of principal in the event of a payment default.
     
Standard & Poor's also assigned a 'CCC-' rating to Spectrum
Brands' planned USU$350 million variable rate toggle senior
subordinated notes due 2013.  

Spectrum Brands Inc.

     -- Corporate Credit Rating          CCC+/Negative/--

Spectrum Brands Inc.

     -- Senior Secured Local Currency    CCC+ (Recov Rtg: 2)
     -- Senior Subordinated Notes        CCC-

Moody's Investors Service lowered Spectrum Brands, Inc.
corporate family rating to Caa1 from B3.  Moody's also assigned
a B2 rating to Spectrum Brands' proposed new senior secured term
loan and a Caa3 rating to its US$350 million variable rate
toggle senior subordinated notes due 2013 or the new notes,
which the company is offering in exchange for the US$350 million
8.5% senior subordinated notes due 2013 or the original notes.  
Moody's also lowered the rating of the company's US$700 million
7.375% senior subordinated notes due 2015 and for the original
notes to Caa3 from Caa2.

Ratings Downgraded:

  Spectrum Brands, Inc.

     -- Corporate family rating at to Caa1 from B3;

     -- Probability-of-default rating to Caa1 from B3;

     -- US$700 million 7.375% senior subordinated bonds
        due 2015 to Caa3 (LGD5, 83%) from Caa2 (LGD5, 82%).

     -- US$350 million 8.5% senior subordinated notes due 2013
        to Caa3 (LGD5, 83%) from Caa2 (LGD5, 82%).*

Ratings Assigned:

  Spectrum Brands, Inc.

     -- US$350 million variable rate toggle senior subordinated
        notes due 2013 at Caa3 (LGD5, 83%);

     -- US$1.55 billion senior secured revolving credit facility
        due 2013 at B2 (LGD2, 29%);

     -- US$50 million synthetic letter of credit facility
        due 2013 at B2 (LGD2, 29%).

Ratings to be Withdrawn:

     -- US$300 senior secured revolving credit facility due 2011
        at B1 (LGD2, 27%);

     -- US$740 million senior secured term loan B due 2012
        at B1 (LGD2, 27%);

     -- US$50 million senior secured term loan B due 2012
        at B1 (LGD2, 27%).




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


BRITISH AIRWAYS: Appoints UBS to Advise on 10% Iberia Stake
-----------------------------------------------------------
British Airways plc has decided to appoint UBS AG to advise on
how to use its 10% holding in Iberia Lineas Aereas de Espana SA
in the best interests of shareholders.

The advice will examine all options, including a disposal of the
holding.

The move came after Iberia disclosed that it has received a bid
approach from private equity firm Texas Pacific Group.

However, BA instructed its two nominees to the Iberia board not
to attend future meetings of the Spanish carrier to avoid any
potential conflict of interest, AFX News reports citing a
company spokesman.

According the report, TPG is considering a cash offer of EUR3.60
a share, which values Iberia at EUR3.4 billion (US$4.5 billion).

BA refused to comment on news that it is in talks with TPG over
a joint venture bid for the airline.

                     About British Airways

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 Limited and British Airways Travel
Shops Limited.  BA has offices in India and Guatemala.

                        *     *     *

In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the existing non-financial speculative-grade
corporate issuers in Europe, Middle East and Africa, the rating
agency confirmed its Ba1 Corporate Family Rating for British
Airways Plc.  

* Issuer: British Airways, Plc

                                                      Projected
                           Old POD  New POD  LGD      Loss-iven
   Debt Issue              Rating   Rating   Rating   Default
   ----------              -------  -------  ------   ----------

   GBP100-million 10.875%
   Sr. Unsec. Regular
   Bond/Debenture
   Due 2008                Ba2      Ba2      LGD5     84%

   GBP250-million 7.25%
   Sr. Unsec. Regular
   Bond/Debenture
   Due 2016                Ba2      Ba2      LGD5     84%

As reported in the TCR-Europe on March 27, Standard & Poor's
Ratings Services said that its 'BB+' long-term corporate credit
rating on British Airways PLC remains on CreditWatch, with
positive implications, following a vote on March 22 by EU
ministers approving a proposed "open skies" aviation treaty with
the U.S.


BRITISH AIRWAYS: Inks Boeing Engine Contract with Rolls-Royce
-------------------------------------------------------------
British Airways plc has chosen Rolls-Royce Trent engines to
power its four new Boeing 777-200ER aircraft that will be
delivered in 2009.

The airline has also signed a long-term maintenance agreement
with Rolls Royce for the engines.

This follows a competition between Rolls-Royce Trent and General
Electric GE90 engines.

The airline currently has 43 Boeing 777 aircraft in its fleet,
of which 16 are Boeing 777-200 ER aircraft powered by Rolls-
Royce Trent engines.  The remaining 777 aircraft have GE90
engines.

"This was a closely fought competition but in terms of cost and
ongoing maintenance support, Rolls-Royce came out in front,"
Robert Boyle, British Airways commercial director, said.  "Later
this year, we will place a major order for new longhaul aircraft
and both Roll-Royce and GE, along with the Engine Alliance, will
be competing to provide the engines for those aircraft."

As previously reported in the TCR-Europe on April 2, Boeing
Commercial Airplanes and British Airways have finalized an order
for four Boeing 777-200ER jetliners valued at more than US$800
million at list prices.  British Airways also secured options
for four additional 777-200ERs.  The airline said it is using
the 777s to expand its long-haul fleet.

                    About British Airways

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 Limited and British Airways Travel
Shops Limited.  BA has offices in India and Guatemala.

                         *     *     *

In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the existing non-financial speculative-grade
corporate issuers in Europe, Middle East and Africa, the rating
agency confirmed its Ba1 Corporate Family Rating for British
Airways Plc.  

* Issuer: British Airways, Plc

                                                      Projected
                           Old POD  New POD  LGD      Loss-iven
   Debt Issue              Rating   Rating   Rating   Default
   ----------              -------  -------  ------   ----------

   GBP100-million 10.875%
   Sr. Unsec. Regular
   Bond/Debenture
   Due 2008                Ba2      Ba2      LGD5     84%

   GBP250-million 7.25%
   Sr. Unsec. Regular
   Bond/Debenture
   Due 2016                Ba2      Ba2      LGD5     84%

As reported in the TCR-Europe on March 27, Standard & Poor's
Ratings Services said that its 'BB+' long-term corporate credit
rating on British Airways PLC remains on CreditWatch, with
positive implications, following a vote on March 22 by EU
ministers approving a proposed "open skies" aviation treaty with
the U.S.




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


GOODYEAR TIRE: Fitch Affirms Low B Ratings on US$3.65-Bil. Debts
----------------------------------------------------------------
Fitch Ratings has affirmed ratings for The Goodyear Tire &
Rubber Co. and revised the rating outlook to positive from
stable:

   -- Issuer Default Rating 'B';
   -- US$1.5 billion first-lien credit facility 'BB/RR1';
   -- US$1.2 billion second-lien term loan 'BB/RR1';
   -- US$300 million third-lien term loan 'B/RR4';
   -- US$650 million third-lien senior secured notes 'B/RR4';
   -- Senior unsecured debt 'CCC+/RR6'.

Goodyear Dunlop Tires Europe B.V.

   -- EUR505 million European secured credit facilities
      'BB/RR1'

Goodyear Tire had approximately US$7.2 billion of debt
outstanding at Dec. 31, 2006, prior to the pay down of bank
loans in January.

The revision of the rating outlook to Positive follows Goodyear
Tire's announcement in March 2007, that it had reached an
agreement to sell the Engineered Products business for US$1.475
billion.  The company has indicated that it will use part of the
proceeds to reduce debt although specific plans have not yet
been announced.  An eventual upgrade of Goodyear Tire's ratings
would be dependent on the amount of debt paid down, improvement
in demand for replacement tires in North America, and Goodyear
Tire's ability to realize anticipated improvements in its cost
structure, particularly in North America.  Goodyear Tire's has
also stated that it may consider issuing equity that would
further support its long-term plan to reduce leverage.

Rating concerns include raw material costs, competitive pricing
in certain international markets, and substantial cash
requirements for capital expenditures, pension contributions,
and working capital requirements to rebuild inventory following
the labor strike that was resolved at the end of 2006.  In
addition, under the terms of its contract with the United Steel
Workers, Goodyear Tire plans to fund a Voluntary Employees'
Beneficiary Association or VEBA trust for US$1 billion, of which
up to US$300 million may be funded by stock.  Operating profit
in 2006 was significantly affected by strike costs of
approximately US$361 million in 2006, and Goodyear Tire
estimates additional strike-related costs in 2007 will be an
additional US$205 million-US$240 million.

These concerns could eventually be mitigated by improvements in
Goodyear Tire's free cash flow related to the planned closure of
the Tyler, Texas plant in 2008 and the company's forecast for a
decline in pension contributions after 2007.  In addition,
interest expense can be expected to decline as Goodyear Tire's
reduces debt, and the firm estimates it will realize annual cash
savings of US$145 million from the transfer of other post-
employment benefits or OPEB liabilities to the VEBA trust.

Goodyear Tire's is currently in the process of amending and
extending its bank facilities for similar amounts under improved
terms.  The facilities include a US$1.5 billion first-lien
revolver (new maturity in 2013), a US$1.2 billion second-lien
term loan (new maturity in 2014), and Goodyear Dunlop's EUR505
million first-lien credit facilities (new maturity in 2012).  
Goodyear Tire's T's third-lien bank term loan is not being
amended.  The bank facilities are expected to be completed in
April 2007.

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


SUGAR COMPANY: Extends Bidding for Sugar Factories to 60 Days  
-------------------------------------------------------------
The Sugar Company of Jamaica has extended the bidding process
for its five factories to 60 days, the Jamaica Gleaner reports.

According to The Gleaner, interested investors must submit their
bids by the end of May.

Information Minister Donald Buchanan told The Gleaner that the
government initially short listed five bidders.

However, the Troubled Company Reporter-Latin America reported on
March 22, 2007, that Jamaica's Finance Minister Dr. Omar Davies
and Agriculture Minster Roger Clarke decided to extend the
deadline for the submission of bids for the five factories.  
Jamaica's agriculture and finance ministries decided to hold
discussions to come up with a decision on whether the late bids
for the assets of the Sugar Company should be accepted by the
divestment committee.  Minister Clarke said that the government
was considering how to facilitate the new interests, as the pre-
qualification period already ended.  The late bids reportedly
come from U.S. and Brazilian investors.

Mr. Buchanan explained to The Gleaner, "There have been 11
expressions of interest.  I think five of those have basically
been accepted in terms of their viability.  However, Minister of
Agriculture Roger Clarke indicated that in the best interest of
maximizing whatever returns we will be receiving for the
privatization of the sugar industry that certain recent
developments within the international sugar industry was of such
that it would be in our best interest to have this extra 60 days
for persons to submit."

The five factories up for auction are:

          -- Frome,
          -- Monymusk,
          -- Bernard Lodge,
          -- Long Pond, and
          -- Duckenfield.

Sugar Company of Jamaica registered a net loss of almost US$1.1
billion for the financial year ended Sept. 30, 2005, 80% higher
than the US$600 million reported in the previous financial year.
Sugar Company blamed its financial deterioration to the
reduction in sugar cane production.  According to published
reports, the Jamaican government has taken responsibility for
the payment of the firm's debts.




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


ARROW ELECTRONICS: Good Performance Cues Fitch to Lift Ratings
--------------------------------------------------------------
Fitch Ratings has upgraded Arrow Electronics, Inc.'s ratings:

   -- Issuer Default Rating to 'BBB-' from 'BB+';

   -- Senior unsecured notes to 'BBB-' from 'BB+';

   -- Senior unsecured bank credit facility to 'BBB-' from
      'BB+'.

The rating outlook is stable.  Fitch's action affects
approximately US$1 billion in debt securities.

The upgrade reflects Arrow's improved operating performance,
strong revenue growth that has exceeded its served market, and
Fitch's belief that the company will limit leverage to
approximately 2.5x over the longer term.  Arrow's operating
model has improved considerably since 2001, the result of market
share consolidation, growth and maturing of end markets, greater
diversification and improved operating efficiency, which have
all led to solid and consistent free cash flow and enabled Arrow
to reduce debt balances over the past several years.  Fitch
estimates that Arrow has improved its return on invested capital
from less than 6% at the end of 2001 to above 11% at the end of
2006.

Fitch expects that Arrow will continue to gain market share,
particularly as consolidation trends continue in Europe and the
company gains share against smaller component distributors in
Asia-Pacific.

Fitch also expects Arrow will continue to benefit from greater
diversification, both geographically and by business segment,
which when combined with solid unit growth in the components and
IT markets, should lead to increasing stability in what is
historically a highly cyclical business model.

Lastly, Fitch views Arrow's increased usage of short-term debt
to fund the recent acquisition of Agilysys Keylink as well as
refinance its 7% senior unsecured notes which matured in January
2007, as a positive.  Given the high working capital nature of
the business model, Fitch expects Arrow to maintain the
financial flexibility to reduce short-term debt from working
capital proceeds in an industry downturn.

The Stable Outlook reflects Fitch's belief that Arrow will
maintain its current financial profile with EBIT margins of
approximately 4.5% and cash conversion cycle days within a range
of 60 days to 70 days.  

Fitch expects that Arrow will likely continue to make debt
financed acquisitions going forward which at times could push
leverage above 2.5x on a temporary basis.  Fitch believes that
Arrow's commitment to using free cash flow to repay additional
debt balances if and when leverage exceeds 2.5x is important to
the maintenance of its current rating.  Also incorporated into
the current ratings and outlook is Fitch belief that Arrow will
establish a consistent and modest share repurchase plan into its
capital planning.

The ratings are supported by:

   -- Arrow's leading market positions in both component and
      enterprise computing distribution worldwide;

   -- the ability to generate cash from operations with growth
      rates slightly above 10%, as well as significant cash in a
      downturn;
   
   -- a highly-diversified supplier and customer base with no
      supplier or customer representing greater than 7% or 2%,
      respectively, of revenue in 2006;

   -- increasing end-market and geographic diversification
      driven by higher growth rates in the Asia-Pacific region
      and market share consolidation within the Enterprise
      Computing Solutions business.

In addition, Fitch believes that components distributors are
increasingly important to the electronics supply chain, as
suppliers have increased the percentage of total sales through
the distribution channel to efficiently reach the highly
profitable SMB market.

Ratings concerns include:

   -- the thin operating margins for the components
      distributors, which Fitch believes have limited upside in
      the intermediate future;

   -- the significant investment levels required to increase
      share in the faster growing Asia Pacific region, including
      potentially debt-financed acquisitions;

   -- Arrow's exposure to the cyclical demand patterns and cash
      flows associated with the semiconductor market (~60% of
      sales); and

   -- the potential for future debt-financed share repurchase
      programs.

Arrow continued to improve its financial profile, along with
maintaining relatively consistent annual free cash flow, over
the past year.  Fitch estimates that as of Dec. 31, 2006,
Arrow's leverage ratio was 1.8x, down from 2.6x at the end of
2005 and its interest coverage ratio was 7.5x, up from 6.5x at
the end of 2005. Free cash flow in 2006 was approximately US$55
million.  Fitch expects leverage to rise slightly above 2.0x
after accounting for increased debt stemming from Arrow's recent
acquisition of Agilysys Keylink.

As of Dec. 31, 2006, liquidity was sufficient supported by cash
and cash equivalents of approximately US$338 million; an undrawn
US$600 million senior unsecured revolving credit facility
expiring June 2010; and an undrawn US$550 million accounts
receivable securitization facility expiring February 2008.

Consistent annual free cash flow averaging over US$200 million
also has supported liquidity over the past five years.  

Total debt was USUS$1.2 billion as of Dec. 31, 2006, and
consisted primarily of:

   * US$170 million 7% senior notes due in 2007;
   * US$200 million 9.15% senior debentures due 2010;
   * US$350 million 6.875% notes due 2013;
   * US$200 million 6.875% senior debentures due 2018; and
   * US$200 million 7.5% senior debentures due 2027.

In January 2007, Arrow amended its credit facility to increase
the size to US$800 million with an additional US$200 million
term loan and extended the maturity to January 2012.  Arrow
subsequently utilized the term loan to refinance the 7% notes,
which matured earlier this year.


BALLY TOTAL: Expands Distribution Partnership with drugstore.com
----------------------------------------------------------------
Bally Total Fitness has signed a new national distribution
partnership with drugstore.com.  The Bally Total branded
products now offered in the "Diet and Fitness" section of the
website include: nutritional, energy and performance supplements
as well as hand exercise equipment.
    
To launch the new partnership, Bally Total will provide a 25
percent discount on all Bally Total products purchased on the
website through May 11, 2007, and drugstore.com will provide
free shipping on any new, non-prescription orders.
    
The complete list of Bally products available on drugstore.com:

   -- Weight Management Products: Fat Burning Complex and CLA

   -- Energy Products: Sugar free SuppleMints with taurine,
      caffeine and guarana; Blast Energy Drinks (regular and
      sugar free varieties); and Energy Supplements with
      green tea, ginkgo, ribose and ginseng

   -- Sports Performance: Powders and supplements to support
      muscle building and workout efforts including: whey
      protein, creatine, nitric oxide maximizer, and
      glutamine

   -- Exercise Equipment:  Dumbbells, exercise balls, talking
      pedometers, and pilates and yoga kits
    
                  About Drugstore.com Inc.
    
Drugstore.com Inc. (Nasdaq: DSCM) is a leading online provider
of health, beauty, vision, and pharmacy solutions.  The
drugstore.com(TM) online store provides a convenient, private,
and informative shopping experience for consumers who seek
products essential to healthy, everyday living.  The online
store offers thousands of brand-name personal health care
products at competitive prices; a full-service, licensed retail
pharmacy; and a wealth of health-related information, buying
guides, and other tools designed to help consumers make informed
purchasing decisions.

                  About Bally Total Fitness

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

As reported in the Troubled Company Reporter-Latin America on
March 20, 2007, Moody's Investors Service downgraded its
corporate family rating on Bally Total Fitness Holding Corp. to
Caa3 from Caa1.  The rating outlook remains negative.

Moody's also took these actions:

   -- US$235 million 10.5% senior unsecured notes (guaranteed)
      due 2011, downgraded to Caa3 (LGD 4, 51%)
      from Caa1 (LGD 4, 51%)

   -- US$300 million 9.875% senior subordinated notes due 2007,
      downgraded to Ca (LGD 5, 88%) from Caa3 (LGD 5, 88%)

   -- Probability of default rating, downgraded to Caa3
      from Caa1.


ENTRAVISION COMM: S&P Affirms B+ Long-Term Corp. Credit Rating
--------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on
Entravision Communications Corp. to positive from stable.  At
the same time, Standard & Poor's affirmed its 'B+' long-term
corporate credit rating on the company.  The company had
US$497.8 million of total debt outstanding as of Dec. 31, 2006.
     
"The outlook revision reflects the company's strong operating
performance relative to the industry, solid liquidity position,
and maintenance of lower leverage even after aggressive share
buybacks and continued acquisitions in 2006," said Standard &
Poor's credit analyst Michael Altberg.
     
The rating on Entravision Communications reflects the company's
high debt levels, intensifying Spanish-language media
competition, and the potential for advertising volatility.  
These factors are only partially offset by Entravision
Communications' long-term strategic relationship with
shareholder Univision Communications Inc. (B/Negative/--),
broadcasting's good margin potential and discretionary cash
flow-generating capabilities, and resilient station asset
values.

Headquartered in Santa Monica, California, Entravision
Communications Corporation (NYSE: EVC)
-- http://www.entravision.com/-- is a diversified Spanish-
language media company utilizing a combination of television,
radio and outdoor operations to reach approximately 75% of
Hispanic consumers across the United States, as well as the
border markets of Mexico.  Entravision is the largest affiliate
group of both Univision television network and Univision's
TeleFutura network, with television stations in 20 of the
nation's top 50 Hispanic markets in the United States.  
Entravision owns and operates one of the nation's largest groups
of primarily Spanish-language radio stations, consisting of 54
owned and operated radio stations in 21 U.S. markets.  
Entravision's outdoor advertising operations consist of
approximately 11,100 advertising faces located primarily in Los
Angeles and New York.


GENERAL MOTORS: Retail Sales Up 0.5% in First Quarter 2007
----------------------------------------------------------
General Motors Corporation disclosed its March 2007 sales.

                     First Quarter Highlights

   * Retail Sales Up 0.5% - Mid-Cars Up 14.5%; Full-Size Pickups
     up 12.2%

   * Saturn and GMC Post Substantial Gains Led By Aura Mid-Size
     Sedan and Crossovers Outlook and Acadia

   * Chevrolet Impala and Aveo Post Quarterly Record Sales

   * Daily Rental Sales Down 32%; Non-Rental Fleet Sales Up 3%

                         March Highlights

   * Sales Down 7.7% vs. Year Ago

   * GMC Acadia and Saturn Outlook Fuel 235% Retail Increase in
     Mid-Utility Crossover Sales

   * Record March Escalade Sales Drive 17.6% Retail Increase in
     Large Luxury Utilities

   * Chevrolet Impala, Pontiac G6 and Saturn Aura Contribute To
     Retail Sales Increase For Mid-Car Segment

   * Daily Rental Sales Down 35%

GM dealers in the United States delivered 349,867 vehicles in
March, a reduction of 7.7% on a sales day-adjusted basis (down
4.2% non-adjusted), compared with 365,375 total sales a year
ago.  Fleet sales were down 11.8% due to continuing reductions
in daily rental sales.  GM's March retail sales were down 6.2%
compared with year-ago levels on a sales day-adjusted basis
(down 2.8% non-adjusted).

For the first quarter of 2007, GM delivered 909,094 vehicles, a
decline of 5.6%, driven by reductions of almost 60,000 daily
rental vehicle sales.  For the first quarter of 2007, GM retail
sales were up 0.5%.  The reductions in fleet sales have resulted
in a significant improvement in the retail/fleet mix.

"As we continue to build upon our strategy of focusing on value,
lowering daily rental sales and increasing residual values, we
were able to grow retail sales for the quarter, posting year-
over-year increases in 19 vehicle lines.  That's very good news.  
In March, we saw continued strength and stability in our retail
business led by gains in mid-cars, crossovers, economy cars and
luxury SUVs," said Mark LaNeve, vice president, GM North
American Sales, Service and Marketing.  

"The Chevrolet Silverado, GMC Sierra, Acadia and Saturn Outlook
are exceeding our expectations and confirm that when you offer
the best product, value, segment-leading fuel economy and the
best warranty coverage in the industry, customers respond."

GM March sales reflected the continuing strength of the new
product portfolio with competitive incentive spending, balanced
with ongoing reductions in daily rental fleet sales.

Chevrolet Aveo, Impala, Equinox, HHR, Suburban and Avalanche;
Pontiac G6; Saturn Sky; GMC Yukon XL; Cadillac SRX, Escalade ESV
and Escalade EXT all had March retail sales increases compared
to a year ago. Pontiac G5; Saturn Aura and Outlook and the GMC
Acadia are newly-offered products and continue to contribute
retail sales momentum. The GMC Acadia and Saturn Outlook drove a
235% retail increase in the mid-crossover segment.

For the first quarter, Chevrolet Aveo, Impala, Colorado,
Silverado, Suburban and Avalanche; Buick Rendezvous; Pontiac G6
and Vibe; Saturn Sky; GMC Canyon, Sierra and Yukon XL; Cadillac
SRX, Escalade, Escalade ESV and Escalade EXT; Saab 9-5 and 9-7X
all had retail sales increases compared with the first quarter
of 2006.  Pontiac G5, Saturn Aura and Outlook and GMC Acadia
built retail strength in the quarter.

"GM offers the best coverage with a 5 year/100,000 mile
powertrain limited warranty with roadside assistance and
courtesy transportation.  For customers, that translates to
tangible value versus competitive cars, SUVs and trucks," LaNeve
added.  "Our customers are telling us that we have great
products, industry-leading fuel economy and the best value out
there.  And with new products such as the Buick Enclave,
Cadillac CTS and Chevrolet Malibu still to come this year, we
expect to build on this momentum."

                      Certified Used Vehicles

March 2007 sales for all certified GM brands, including GM
Certified Used Vehicles, Cadillac Certified Pre-Owned Vehicles,
Saturn Certified Pre-Owned Vehicles, Saab Certified Pre-Owned
Vehicles and HUMMER Certified Pre-Owned Vehicles, established a
new monthly sales record for the certified category with sales
of 53,734 units, up 9.7% from last March.  Total year-to-date
certified GM sales are 139,851 units, up 8% from the same period
last year.

Leading the way was GM Certified Used Vehicles, the industry's
top-selling manufacturer-certified used brand, which set a new
industry monthly sales record for the certified pre-owned
category with sales of 47,394 units.  GM Certified sales were up
11% from the previous March. Year-to-date sales for GM Certified
Used Vehicles are 122,784 units, up nearly 9%.

Cadillac Certified Pre-Owned Vehicles posted sales of 3,847
units, comparable to last March.  Saturn Certified Pre-Owned
Vehicles sold 1,615 units in March, down 7%.  Saab Certified
Pre-Owned Vehicles sold 761 units, comparable to last March, and
HUMMER Certified Pre-Owned Vehicles sold 117 units, up 41%.

"March was a record month for GM certified sales," LeNeve said.
"GM Certified Used Vehicles, which sold 47,394 units, set a new
industry monthly sales record for a certified brand.  This puts
an exclamation mark on an outstanding first quarter by GM
Certified Used Vehicles.  With the 5 year/100,000 mile warranty
on qualifying Certified Used Vehicles, we're optimistic this
momentum will continue throughout the year."

                         GM North America

Reports March and First-Quarter 2007 Production, 2007 Second-
Quarter Production Forecast is Revised at 1.160 Million Vehicles

In March, GM North America produced 401,000 vehicles (134,000
cars and 267,000 trucks).  This is down 59,000 units or 13 %
compared to March 2006 when the region produced 460,000 vehicles
(182,000 cars and 278,000 trucks).  (Production totals include
joint venture production of 15,000 vehicles in March 2007 and
16,000 vehicles in March 2006.)

GM North America built 1.063 million vehicles (399,000 cars and
664,000 trucks) in the first-quarter of 2007. This is down
192,000 vehicles or 15 % compared to first-quarter of 2006 when
the region produced 1.255 million vehicles (496,000 cars and
759,000 trucks).  Additionally, the region's 2007 second-quarter
production forecast is revised at 1.160 million vehicles
(410,000 cars and 750,000 trucks), down 15,000 units or 1.3 %
from last month's guidance.

GM also announced revised 2007 first-quarter and second-quarter
production forecasts for its international regions.

                             GM Europe

GM Europe's 2007 first-quarter production forecast is revised at
511,000 units, up 3,000 units from last month's guidance.  In
the first-quarter of 2006 the region built 494,000 vehicles.  
The region's 2007 second-quarter production forecast is revised
at 473,000 vehicles, up 6,000 units from last month's guidance.
In the second-quarter of 2006 the region built 495,000
vehicles.

                          GM Asia Pacific

The region's 2007 first-quarter production forecast is revised
at 539,000 vehicles, up 1,000 units from last month's guidance.  
In the first-quarter of 2006 the region built 472,000 vehicles.  
GM Asia Pacific's 2007 second-quarter production forecast is
revised at 568,000 vehicles, up 8,000 units from last month's
guidance.  In the second-quarter of 2006 the region built
482,000 vehicles.

            GM Latin America, Africa and the Middle East

The region's 2007 first-quarter production forecast is revised
at 222,000 units, down 3,000 units from last month's guidance.  
In the first-quarter of 2006 the region built 194,000 vehicles.  
The region's 2007 second-quarter production forecast is
unchanged at 233,000 vehicles.  In the second-quarter of 2006
the region built 206,000 vehicles.

                     About General Motors Corp.

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

                           *     *     *

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

As reported in the Troubled Company Reporter on Nov. 14, 2006,
Moody's Investors Service assigned a Ba3, LGD1, 9% rating to the
US$1.5 billion secured term loan of General Motors Corp.

As reported in the Troubled Company Reporter on Nov. 14, 2006,
Moody's Investors Service assigned a Ba3, LGD1, 9% rating to the
US$1.5 billion secured term loan of General Motors Corp.


GRUPO MEXICO: Stops Search for Coal Mine Explosion Victims
----------------------------------------------------------
Grupo Mexico SA de C.V. has suspended the search for the bodies
of 63 miners at its Pasta de Conchos coal mine due to a health
hazard warning.

Industrial Minera Mexico spokesperson Oscar Kaufmann told the
Associated Press that the company had given authorities a report
by a U.S. mining expert that continuing the search would risk
more lives.  The report, which was commissioned by Industrial
Minera at the request of state authorities in March, warned
rescuers of health hazards and toxic gas at the mine, which
exploded last year.  

Mr. Kaufmann told San Antonio Express-News that explosive
concentrations of methane deep inside the collapsed mine have
not been successfully cleared and that human remains are
believed to have contaminated a 4-million-gallon pool of water
inside the mine, creating an infectious disease risk.

The rescuers may be exposed to chronic infectious hazards
including hepatitis, HIV, enteric pathogens and tuberculosis.  
This exposure could also affect their families and the entire
community, Mineweb notes, citing a report by Phoneix Coal Vice
President of Operations Daniel G. Wooten.  

Mr. Wooton's report indicated that the mine contains large
amounts of toxic gas and is unstable in many sections, as
cleared areas haven't been adequately reinforced to avoid
another collapse.  

Rescuers found two bodies and explored a third of the mine so
far.  Almost US$30 million was spent on the rescue, which was
made difficult due to toxic gases and tons of wood, rock and
metal debris.

According to San Antonio Express-News, Mr. Kaufmann said that
the suspension was temporary.  However, Mr. Wooton's report
placed in doubt the possibility of restarting the rescue.

A Grupo Mexico official told AP that the company was waiting for
the government's decision on whether to permanently stop the
rescue.

Grupo Mexico has no plans to reopen the mine.

Grupo Mexico SA de C.V. -- http://www.grupomexico.com/--
through its ownership of Asarco and the Southern Peru Copper
Company, Grupo Mexico is the world's third largest copper
producer, fourth largest silver producer and fifth largest
producer of zinc and molybdenum.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Dec. 29, 2006, Fitch upgraded the local and foreign currency
Issuer Default Rating assigned to Grupo Mexico, S.A. de C. V. to
'BB+' from 'BB'.  Fitch said the rating outlook is stable.


VANGUARD CAR: Moody's May Downgrade Ratings After Review
--------------------------------------------------------
Moody's Investors Service is reviewing the ratings of ERAC USA
Finance Company for possible downgrade following the report that
Enterprise has entered into a definitive agreement to purchase
Vanguard Car Rental Group Inc. and its rated subsidiary -
Vanguard Car Rental USA Holdings, Inc. which operates the
"National" and "Alamo" brands.  

The acquisition is subject to regulatory approval and is
expected to be completed during the second half of 2007.  
Financial terms of the transaction have not been publicly
disclosed.

Moody's review of ERAC is focusing on the transaction's ultimate
financial terms and legal structure.  Key areas of consideration
will include the amount of debt taken on by Enterprise to fund
the acquisition, and the extent to which the company refinances
or provides supports for Vanguard's existing and future
borrowing requirements.  Moody's review will also assess the
operational and strategic benefits that might result from the
acquisition.  These potential benefits will be balanced against
any increased debt servicing obligations.

Moody's said that the proposed acquisition does not affect the
ratings of Vanguard.  These ratings, which are affirmed,
include:

   * corporate family rating, B1
   * probability of default, B1
   * senior secured bank credit facility, Ba3, LGD3, 37%; and
   * speculative grade liquidity, SGL-3.

As a result of change of control language in Vanguard's bank
agreement, it is likely that these obligations will be repaid if
the acquisition is completed.  Should this occur, all of
Vanguard's ratings would be withdrawn.  In the event that some
portion of Vanguard's bank debt remains outstanding, the ratings
would consider the degree of implicit and explicit support
provided by Enterprise for Vanguard's debt.  

Additionally, should no explicit support be provided and
Enterprise not make sufficient financial information regarding
Vanguard available upon which a rating opinion could be based,
the ratings would be withdrawn.

Enterprise Rent-A-Car Company, headquartered in St. Louis,
Missouri, is the leading provider of in-town and insurance
replacement rental cars in US.  ERAC USA Finance Company is a
wholly-owned funding vehicle for Enterprise.

Headquartered in Tulsa, Oklahoma, Vanguard Car Rental Holdings
LLC -- http://www.vanguardcar.com/-- is a car rental company  
operator of the National Car Rental and Alamo Rent A Car brands.  
It has more than 3,200 locations in 83 countries, including the
United States, Canada, Mexico, Europe, the Caribbean, Latin
America, Hong Kong, Malaysia, the Pacific Rim, Africa, the
Middle East and Australia.  


VISTEON CORP.: Fitch Cuts Senior Unsecured Debt Rating to CC
------------------------------------------------------------
Fitch Ratings has taken these actions regarding the ratings of
Visteon Corp.:

     -- Issuer Default Rating (IDR) affirmed 'CCC';
     -- Senior Secured Bank Facility affirmed 'B/RR1';
     -- Senior unsecured downgraded to 'CC/RR6' from 'CCC-/RR5'.

Approximately US$2.8 billion of debt is covered by these
ratings. The Rating Outlook is Negative.

Fitch's rating actions reflect Visteon's bank facility
amendment, which increases the size of the term loan by US$500
million to a total of US$1.5 billion, adds a US$200 million
accordion feature, and increases collateral.  The affirmation of
the amended senior secured bank facility rating is based upon
Fitch's assessment that the recovery of the facility in a
distressed scenario will still be in the 'RR1' category
(recovery of 91%-100%) due to the revised collateral package.  
The downgrade of the senior unsecured recovery rating to the
'RR6' category (0%-10% recovery estimate) reflects Fitch's
expectation of reduced recovery in a distressed scenario as a
result of the increase in senior secured indebtedness and the
increase in encumbered assets.

Fitch's ratings recognize Visteon's additional liquidity from
the announced US$500 million term loan amendment, restructuring
progress, increasing customer diversification, and global
manufacturing footprint.  However, Fitch's concerns and its
Negative Rating Outlook are based on Visteon's dependence on
Ford Motor Company, negative free cash flow, highly levered
balance sheet, the company's substantial restructuring needs, as
well as the potential for customer manufacturing disruptions due
to a financially weakened base of suppliers other than Visteon
and its customers' union issues.

Visteon's term-loan amendment provides the banks with additional
collateral, including a 65% stock pledge of additional first-
tier foreign subsidiaries and Halla.  Halla is a publicly traded
Korean automotive supplier which is 70% owned by Visteon, of
which, only 5% will now be unencumbered. The amendment also
provides for slight increases to certain allowed indebtedness.
Other than the limitations on indebtedness, Visteon's existing
covenants remain unchanged, including the lack of financial
covenants.

Headquartered in Van Buren Township, Mich., Visteon Corp.
(NYSE: VC) -- http://www.visteon.com/-- is a global automotive     
supplier that designs, engineers and manufactures innovative
climate, interior, electronic, and lighting products for vehicle
manufacturers, and also provides a range of products and
services to aftermarket customers.  With corporate offices in
the Michigan (U.S.); Shanghai, China; and Kerpen, Germany; the
company has more than 170 facilities in 24 countries, including
Mexico, and employs approximately 50,000 people.

Visteon's balance sheet at Dec. 31, 2006, showed total assets of
US$6.93 billion and total liabilities of US$7.12 billion,
resulting in a total shareholders' deficit of US$188 million.
The company's total shareholders' deficit as of Dec. 31, 2005,
stood at US$48 million.




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


SOLO CUP: Posts US$373.2 Million Net Loss in Full Year 2006
-----------------------------------------------------------
Solo Cup Company reported a US$373.2 million net loss on US$2.48
billion net sales for the year ended Dec. 31, 2006, compared
with a net loss of US$19.4 million on net sales of
US$2.43 billion for the year ended Jan. 1, 2006.

The increase in net sales reflects an increase in average
realized sales price, partially offset by lower sales volumes.  
The increase in average realized sales price reflects price
increases implemented over the past year in response to higher
raw material costs for resin and paper. The volume decrease
reflects general industry trends and shifts in the company's
product mix as well as the effects of competitive pressure in
the marketplace.

Gross profit was US$265.1 million for the fiscal year ended
Dec. 31, 2006, a decrease of US$44.1 million from the comparable
period in 2005.  This decrease primarily reflects the company's
inability to fully recover raw material costs and higher energy
and transportation costs.

Selling, general and administrative expenses were US$265.9
million for the fiscal year ended Dec. 31, 2006, versus US$267.3
million for the fiscal year ended Jan. 1, 2006. This modest
decrease is a result of lower integration expenses partially
offset by increases in various professional expenses related to
the new order management system, the development and
implementation of the company's Performance Improvement Program,
and the accounting restatement and related bank amendment
process.

Depreciation and amortization expense was US$100.8 million, net
interest expense was US$90.7 million and capital expenditures
were US$65.1 million for the fiscal year ended Dec. 31, 2006.

Commenting on the company's fiscal year 2006 results, Robert M.
Korzenski, chief executive officer, said: ""Our results were
impacted by a continued challenging industry environment and
increased raw material costs as well as certain customer and
product mix issues.  However, we have taken steps to improve our
manufacturing and supply chain efficiencies, decrease our
selling, general and administrative expenses, reduce our debt
burden, and optimize our sales and marketing organization.  We
have also launched an integrated Performance Improvement Program
designed to address all key value drivers, accelerate our
turnaround, leverage our strengths, and achieve meaningful and
sustainable improvements in our results.  Through these efforts,
coupled with the significant recent additions to our senior
management team, we expect to better position the company to
meet our competitive challenges, improve our operational and
financial performance, and create value for our investors in
2007 and beyond."

In December 2006, the company entered into amendments to its
first and second lien facilities which increased its borrowing
capacity by US$50 million, from US$80 million to US$130 million,
under the term loan of its second lien facility, and which
modified the financial covenants the company is required to
meet.

At Dec. 31, 2006, the company's balance sheet showed
US$1,542.4 million in total assets, US$1,528.8 million in total
liabilities, and US$13.6 million in total stockholders' equity.

Full-text copies of the company's consolidated financial
statements for the year ended Dec. 31, 2006, are available for
free at http://researcharchives.com/t/s?1cbe

                      About Solo Cup Company

Headquartered in Highland Park, Illinois, Solo Cup Company
-- http://www.solocup.com/-- manufactures disposable
foodservice products for the consumer and retail, foodservice,
packaging, and international markets.  Solo Cup has broad
expertise in plastic, paper, and foam disposables and creates
brand name products under the Solo, Sweetheart, Fonda, and
Hoffmaster names.  The company was established in 1936 and has a
global presence with facilities in Asia, Canada, Europe, Mexico,
Panama and the United States.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
March 12, 2007, Moody's Investors Service confirmed the B3
Corporate Family Rating of Solo Cup Co. and revised the rating
outlook to negative.  Moody's assigned a B1 rating to both the
US$638 million senior secured term loan B and US$150 million
revolver and confirmed all other instrument ratings.  This
confirmation of the ratings concludes a rating review for
possible downgrade that was initiated on Sept. 15, 2006.


SOLO CUP: Names Robert Koney as Chief Financial Officer
-------------------------------------------------------
Solo Cup Co. has appointed Robert D. Koney, Jr. as executive
vice president and chief financial officer, effective
April 2, 2007.  

The company also named Peter J. Mendola, senior vice president
of manufacturing and Malcolm S. Simmonds, senior vice president
of foodservice sales and marketing.  Solo Cup also announced the
election of Neil Harrison to its Board of Directors, effective
as of April 2, 2007.  Harrison replaces Norman W. Alpert on the
11-member board and the board's Audit Committee.

Mr. Koney, 50, joins Solo Cup's executive management team from
Russell Corp., a leading branded athletic and sporting goods
company.  Mr. Koney served as Russell's chief financial officer
and senior vice president from 2004-2006, where he was
responsible for the corporation's finance functions, including
financial planning, treasury, accounting, tax, internal audit
and investor relations.

Prior to his tenure at Russell, Mr. Koney spent 18 years with
Goodrich Corp. in a variety of finance positions, most recently
serving as its vice president, corporate controller and chief
accounting officer from 1998-2004.  Previously, he was vice
president and controller of the aircraft wheel and brake
operations for BF Goodrich Aerospace.  Mr. Koney joined Goodrich
as controller and general accounting manager for its specialty
chemicals group in 1986.  Before joining Goodrich, Mr. Koney's
early career included four years with Arthur Andersen in
auditing and tax, as well as four years in tax with Picker
International, a subsidiary of GEC, now part of Philips Medical.

"We are delighted to welcome Bob to our executive management
team," said Robert M. Korzenski, chief executive officer of
Solo.  "His breadth of experience in a variety of financial
positions will bring significant leadership and talent to our
finance and accounting team."

Solo Cup also has appointed Peter Mendola, 51, as senior vice
president of manufacturing.  Mr. Mendola will be responsible for
overseeing all of the company's operations.  Mr. Mendola spent
the past 19 years with Georgia-Pacific / Dixie(R), most recently
as vice president of paper operations.  Previously, Mr. Mendola
held a number of positions within the Dixie organization,
including vice president support operations, director product
supply, planning and deployment and resident manager.  Mr.
Mendola also worked for St. Regis/Champion International/Fonda
Group and James River Corp. in several management level
positions for the nine years prior to joining Dixie.

Malcolm Simmonds, 45, Solo Cup's new senior vice president of
foodservice sales and marketing, brings more than 20 years of
sales and marketing foodservice experience to Solo.  He most
recently served as senior vice president and general manager of
foodservice for The Schwan Food Co.TM, where he joined in 2005
as vice president and general manager of foodservice bakery.  
>From 2001 - 2005, Mr. Simmonds held the positions of vice
president of marketing for the Foodservice and Specialty Brands
divisions of Sara Lee Foods.  He began his career at Kraft in
1983, and held a number of roles across the company's Canadian
sales and marketing departments and U.S. foodservice divisions.

"The collective talents of Pete and Malcolm will positively
impact our business," stated Korzenski. "Both bring a wealth of
industry experience to Solo that will help contribute to the
success of our Performance Improvement Program.  We continue to
attract top-notch talent such as Bob, Pete and Malcolm, and we
expect that they will play a key role in our management team's
efforts to advance the company and build on our future."

The newest member of Solo Cup's Board of Directors, Neil
Harrison, 54, is the chairman, president and chief executive
officer of Birds Eye Foods, a leading U.S. frozen food
processor.  He brings more than 30 years of domestic and
international food industry marketing, sales and finance
experience to his role with Solo.  Prior to joining Bird's Eye
in 2005, Mr. Harrison held senior positions with Unilever,
General Foods, PepsiCo, Miller Brewing Co. and H. J. Heinz Co.

                      About Solo Cup Company

Headquartered in Highland Park, Illinois, Solo Cup Company
-- http://www.solocup.com/-- manufactures disposable
foodservice products for the consumer and retail, foodservice,
packaging, and international markets.  Solo Cup has broad
expertise in plastic, paper, and foam disposables and creates
brand name products under the Solo, Sweetheart, Fonda, and
Hoffmaster names.  The company was established in 1936 and has a
global presence with facilities in Asia, Canada, Europe, Mexico,
Panama and the United States.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
March 12, 2007, Moody's Investors Service confirmed the B3
Corporate Family Rating of Solo Cup Co. and revised the rating
outlook to negative.  Moody's assigned a B1 rating to both the
US$638 million senior secured term loan B and US$150 million
revolver and confirmed all other instrument ratings.  This
confirmation of the ratings concludes a rating review for
possible downgrade that was initiated on Sept. 15, 2006.




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P E R U
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DOE RUN: Workers Halt Strike at La Oroya Smelter
------------------------------------------------
Doe Run Peru Institutional Relations Manager Victor Andres
Balaunde told Business News Americas that the workers' strike at
the company's La Oroya smelter in Peru has ended.

BNamericas relates that a settlement was reached between Doe Run
and the strikers.

As reported in the Troubled Company Reporter-Latin America on
April 4, 2007, Mr. Balaunde said that the protest decreased
output.  The demonstrations were due to disagreements regarding
Doe Run's dividend payments to employees.  Peruvian law requires
operations like Doe Run to give workers about 8% of annual
profits.  Workers miscalculating the amount they think they are
entitled to, started protesting, Mr. Balaunde explained.  

La Oroya operations have returned to normal, BNamericas says,
citing Mr. Balaunde.

Doe Run would have been able to begin legally firing employees
had the demonstrations continued, BNamericas states.

Based in St. Louis, Mo., The Doe Run Company --
http://www.doerun.com/-- is a privately held natural resources
company dedicated to environmentally responsible mineral
production, metals fabrication, recycling and reclamation.  The
company and its subsidiaries deliver products and services
needed to provide power, protection and convenience through
premium products and associated metals including lead, zinc,
copper, gold and silver.  As the operator of one of the world's
only multi-metal facilities and the Americas' largest integrated
lead producer, Doe Run employs more than 5,000 people, with U.S.
operations in Missouri, Washington and Arizona, and Peruvian
operations in Cobriza and La Oroya.

Doe Run Peru S.R.L., an indirect Peruvian subsidiary, operates a
smelter in La Oroya, Peru, one of the largest polymetallic
processing facilities in the world, producing an extensive
product mix of non-ferrous and precious metals, including
silver, copper, zinc, lead and gold.  Doe Run Peru also has a
copper mining and milling operation in Cobriza, Peru in the
region of Huancavelica, which is approximately 200 miles
southeast of La Oroya in Peru.

              Doe Run Peru Going Concern Doubt

As reported in the Troubled Company reporter-Latin America on
Aug. 10, 2006, Doe Run Peru has significant capital requirements
under environmental commitments and guarantees and substantial
contingencies related to taxes and has significant debt service
obligations under the revolving credit facility, each of which,
if not satisfied, could result in a default under Doe Run Peru's
credit agreement and collectively raise substantial doubt about
Doe Run Peru's ability to continue as a going concern.

Doe Run Peru continues to have substantial cash requirements in
the future, including the maturity of the revolving credit
facility on Sept. 22, 2006, and significant capital requirements
under environmental commitments.  In addition, there are
substantial contingencies related to taxes.

The Doe Run Peru Revolving Credit Facility expires on
Sept. 22, 2006, and will require negotiations to extend its
terms.  There can be no assurance that Doe Run Peru will be
successful in extending the existing credit agreement or
negotiating a new agreement, or if it is successful, that the
extended or new credit agreement would be at terms that are
favorable to Doe Run Peru.

Any default under the requirements of the Environmental
Remediation and Management Program could result in a default
under the Doe Run Peru Revolving Credit Facility.  A default
under the requirements of the Doe Run Peru Revolving Credit
Facility results in defaults under the Doe Run Revolving Credit
Facility and the indenture governing the bonds.




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


CENTENNIAL COMM: Reports US$39.9 Mil. Operating Income in Unit
--------------------------------------------------------------
Centennial Communications Corp. said in its earnings report that
operating income from its Puerto Rican subsidiary declined 16%
to US$39.9 million in the third quarter of fiscal year 2007 --
ended Feb. 28 -- compared to US$47.5 million in the same period
in 2006.

Business News Americas relates that the Peruvian unit's revenues
in the third quarter of fiscal year 2007 totaled US$102 million,
flat compared to the same period in 2006.

According to BNamericas, the unit's mobile revenues decreased to
US$75.2 million in the third quarter of fiscal year 2007, from
US$76.3 million in the same period in 2006.  Clients totaled
399,400 in Puerto Rico at the end of the third quarter of fiscal
year 2007, compared to 379,400 at the end of the third quarter
of fiscal year 2006.  Broadband revenues rose to US$30.3 million
from US$29.1 million.

The unit's capex during the third quarter of fiscal year 2007
was US$16.9 million, similar to the US$16.4 million invested in
the same period in 2006, BNamericas states.

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

                        *     *     *

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


DELTA AIR: Moody's Puts Ba2 & B2 Ratings on US$2.5B Exit Loan
-------------------------------------------------------------
Moody's Investors Service assigned new ratings to Delta Air
Lines, Inc. debt, including a B2 corporate family rating, a Ba2
(LGD2, 19%) on the first lien facilities, and a B2 (LGD3, 46%)
on the second lien facilities.  Moody's also assigned a
Speculative Grade Liquidity Assessment of SGL-2.  The outlook is
stable.  Delta expects to emerge from bankruptcy by the end of
April 2007.

"With the cost reduction achieved through the bankruptcy
reorganization, the airline's extensive route network and
initiatives to realign capacity for improved profitability,
Delta is positioned to be an effective network carrier,"
according to Moody's analyst George Godlin.  The restructuring
has significantly improved financial metrics.

Delta Air's operating costs following emergence from bankruptcy
should be among the lowest of the network carriers, and permit
the carrier to compete more effectively and better withstand
ongoing industry challenges.  Financial improvements through
bankruptcy are projected to exceed US$3 billion on an annualized
basis and are likely to be sustainable.  However, Moody's notes
that the average age of Delta's fleet is more than 11 years, and
the airline has only approximately 60 narrow body aircraft
scheduled for delivery over the next several years.

Consequently, maintenance expense is likely to increase as these
aircraft age, and Delta Air is likely to incur significant
capital expenditures over time to address the re-fleeting issue.

Delta Air's plans to improve cash flow through revenue growth
could be more challenging, however.  Delta Air has a number of
initiatives to close the gap between its Revenue per Available
Seat Mile and the average RASM for other network carriers.  
These include a focus on more origination and destination
traffic (rather than lower margin connecting traffic), shifting
capacity from domestic routes to the higher yielding
international destinations and better matching aircraft gauge to
route density.  The operating environment, however, is expected
to remain difficult given high fuel costs and intense
competition on domestic routes from other mainline carriers as
well as Low Cost Carriers.  In addition, other carriers have
been shifting capacity to international routes, and the capacity
could increase even more as the European carriers in particular
take advantage of direct access to more US destinations under
the open-skies legislation that is expected to become effective
during 2008.

The stable outlook reflects Moody's expectation that Delta Air's
post-emergence cost structure, revenue growth strategies and
adequate cash on hand will provide satisfactory flexibility to
withstand some of the near term competitive challenges in the
industry.  In addition, Delta Air should generate strong free
cash flow over the near term, which will steadily improve key
credit metrics including Retained Cash Flow to Debt, Debt to
EBITDA and EBIT to Interest.  Downward pressure on the ratings
could occur if Delta's EBITDA margin declines lower than 15%, or
if Debt to EBITDA (using Moody's standard adjustments) exceeds 7
times or EBIT to interest expense (using Moody's standard
adjustments) falls below 1 times.  Given rising fuel costs and
medium term capital expenditures associated with refleeting,
Delta's ratings could come under pressure if balance sheet
liquidity or cash flow significantly declines from anticipated
levels. The rating could be raised if internally-generated cash
flow is sufficient to sustain EBIT to Interest (using Moody's
standard adjustments) greater than 2 times and Retained Cash
Flow to Debt greater than 15%.

The SGL-2 Speculative Grade Liquidity Rating reflects the
expectation of good liquidity over the coming 12 months.  Delta
Air is likely to generate strong free cash flow over the near
term and steadily add to its cash balance upon emergence from
bankruptcy.  Moody's expects Delta will remain in compliance
with all of its covenants in the near term.  The SGL rating also
reflects the company's limited borrowing capacity, since
substantially all of Delta Air's assets that currently secure
Delta Air's DIP facility also currently serve as collateral for
the post-emergence credit facility.  Delta Air is expected to
have approximately US$2.8 billion in balance sheet cash and
equivalents upon emergence from bankruptcy in April 2007.

Up to US$2.5 billion in exit financing consists of a first-lien
revolving credit facility of US$500 million, a first-lien term
loan facility of US$1 billion, and a second-lien term loan of
US$1 billion.  These facilities will be guaranteed by Delta
Air's direct and indirect domestic subsidiaries and
collateralized by security interests in substantially all of
Delta Air's assets that currently secure Delta Air's DIP
facility including aircraft, spare parts, route authorities,
real estate and unrestricted cash.  Proceeds from the new
financing will be used to repay approximately US$2.0 billion of
Delta Air's DIP loans, with the remainder available for working
capital and general corporate purposes.

Assignments:

  Issuer: Delta Air Lines, Inc.

    Corporate Family Rating of B2
    Probability of Default Rating of B2
    First Lien Bank Revolving Credit Facility,
       Assigned a rating of Ba2, (LGD2, 19%)
    First Lien Term Loan, Assigned a rating of Ba2, (LGD2, 19%)
    Second Lien Term Loan, Assigned a rating of B2, (LGD3, 46%)
    Speculative Grade Liquidity Assessment of SGL-2.

Delta Air Lines, Inc., a major airline that provides scheduled
passenger service throughout North America, the
Caribbean, Latin America, Europe, Africa and Asia, is
headquartered in Atlanta, Georgia.

                      About Delta Air

Headquartered in Atlanta, Ga., Delta Air Lines (OTC:DALRQ)
-- http://www.delta.com/-- is the world's second-largest    
airline in terms of passengers carried and the leading U.S.
carrier across the Atlantic, offering daily flights to 502
destinations in 88 countries on Delta, Song, Delta Shuttle, the
Delta Connection carriers and its worldwide partners.  The
Company and 18 affiliates filed for chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923).  
Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents
the Debtors in their restructuring efforts.  Timothy R. Coleman
at The Blackstone Group L.P. provides the Debtors with financial
advice.  Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at
Akin Gump Strauss Hauer & Feld LLP, provide the Official
Committee of Unsecured Creditors with legal advice.  John
McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James
S. Feltman at Mesirow Financial Consulting, LLC, serve as the
Committee's financial advisors.  As of June 30, 2005, the
Company's balance sheet showed US$21.5 billion in assets and
US$28.5 billion in liabilities.  (Delta Air Lines Bankruptcy
News, Issue No. 66; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)   

                        Plan Update

The Debtors filed a chapter 11 plan of reorganization and
disclosure statement explaining that plan on Dec. 19, 2007.
On Jan 19, 2007, they filed revisions to the plan and disclosure
statement, and submitted further revisions to the plan on
Feb. 2, 2007.  On Feb. 7, 2007, the Court approved the adequacy
of the Debtors' disclosure statement.  The hearing to consider
confirmation the Debtors' plan is scheduled on April 25, 2007.




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


ROYAL & SUN: Agrees to Settle Student Finance Litigation
--------------------------------------------------------
MBIA Inc. disclosed that its wholly owned subsidiary, MBIA
Insurance Corp., has reached an agreement with Royal & Sun
Alliance Insurance Group plc's US subsidiary Royal Indemnity Co.
to settle its outstanding litigation against the latter related
to Student Finance Corp.  

In July 2002, MBIA Corp., together with Wells Fargo Bank N.A. in
its capacity as trustee, filed suit in Delaware federal district
court against Royal Indemnity to enforce insurance policies that
Royal issued guaranteeing vocational loans originated by SFC.  
MBIA Corp. insured eight securitizations that were
collateralized by the SFC vocational student loans guaranteed by
Royal Indemnity.

"We are pleased to resolve this longstanding matter and to
eliminate the additional expense and risks associated with
further litigation," MBIA General Counsel Ram Wertheim said.

                     Terms of the Agreement

The amount payable by Royal Indemnity under the terms of the
settlement will be sufficient to repay the approximately US$362
million of outstanding par amount of the bonds insured by MBIA
as well as to reimburse MBIA for a portion of the claims that
MBIA has paid to date under its insurance policies.  As a result
of the settlement, MBIA will incur approximately US$20 million
in losses in the first quarter.  The loss represents a reduction
to MBIA's expected recoveries for claims it has paid to date
under its policies and will be covered by the Company's
unallocated loss reserves.

The District Court in Delaware has entered a final judgment in
the case implementing the settlement.

                           About MBIA

MBIA Inc. (NYSE: MBI) -- http://www.mbia.com/-- is engaged in  
providing financial guarantee insurance, investment management
services, and municipal and other services to public finance and
structured finance clients on a global basis.  The Company
conducts its financial guarantee business through its wholly
owned subsidiary, MBIA Insurance Corp. and provides investment
management products and financial services through its wholly
owned subsidiary MBIA Asset Management, LLC (MBIA Asset
Management).  MBIA manages its activities primarily through two
principal business operations: insurance and investment
management services.  In February 2007, MBIA Corp. formed a new
subsidiary, MBIA Mexico, S.A. de C.V.  During the year ended
December 31, 2006, MBIA discontinued its municipal services
operations.  These operations included MBIA MuniServices
Company.  On December 5, 2006, the Company completed the sale of
MBIA MuniServices Company.  MBIA has offices in London, Madrid,
Milan, New York, Paris, San Francisco, Sydney and Tokyo.

                  About Royal & Sun Alliance

Headquartered in London, England, Royal & Sun Alliance Insurance
Group PLC -- http://www.royalsunalliance.com/-- is a FTSE 100   
company, listed on the London Stock Exchange and in New York.
The group consists of three regions -- U.K., Scandinavia and
International -- with operations in 30 countries, providing
general insurance products to over 20 million customers
worldwide.  In Latin America, it operates in Brazil, Chile,
Colombia, Mexico, Uruguay, and Venezuela.  In Asia, the company
operates in Hong Kong, Singapore and Saudi Arabia.

                        *     *     *

As of Feb. 22, Royal & Sun Alliance Insurance Group PLC carries
Moody's Ba1 preferred stock rating.




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


CMS ENERGY: Inks Sale Agreement with Venezuelan Government
----------------------------------------------------------
CMS Energy Corp. has signed an accord with the Venezuelan
government for the former's sale of its interest in power
utility Seneca, Business News Americas reports.

BNamericas underscores that Seneca serves Nueva Esparta,
providing power to 120,000 clients on Margarita and Coche
islands.  The utility has a capacity of 22 megawatts and is CMS
Energy's sole business in Venezuela.

CMS Energy said in a statement that the sale will close by the
end of April.  It includes the firm's 88% equity ownership in
Seneca, certain associated generating equipment and other assets
of US$106 million.  The company will use sale proceeds to lessen
parent debt and invest in CMS Michigan utility Consumers Energy.

According to BNamericas, the government decided to nationalize
Seneca and Electricidad de Caracas.  The government also wants
to nationalize power company Eleval in Carabobo.

Venezuelan state oil firm Petroleos de Venezuela will initially
manage Seneca and Electricidad de Caracas, BNamericas states.

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

                        *     *     *

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


DAIMLERCHRYSLER: Chairman Confirms Talks on Likely Chrysler Sale
----------------------------------------------------------------
Dr. Dieter Zetsche, the Chairman of the Board of Management of
DaimlerChrysler AG, has confirmed for the first time that
discussions have taken place with interested parties regarding
future options for the Chrysler Group.

"In this context, I can confirm that we are talking with some of
the potential partners who have shown a clear interest," Mr.
Zetsche is quoted as saying.  "But it is also true that we need
to keep all options open, and that I cannot disclose any
details, because we need to have the maximum scope for
maneuver."

The company's management requires "the greatest possible
flexibility so that we can identify and then professionally
implement the best possible solution."  The basic requirement
with all options is that the Recovery and Transformation plan,
presented in February, is consistently implemented, which will
lead Chrysler back to profitability.  DaimlerChrysler has
defined clear criteria for the decision-making process.  The
company wants to:

   * enhance DaimlerChrysler's financial strength in a
     sustainable way and increase enterprise value;

   * create the right conditions for a clear strategic focus for
     DaimlerChrysler;

   * make the Chrysler Group's business system competitive and
     profitable on a sustainable basis; and

   * find the best possible option for the employees.

"This means, that after reviewing all options, we will finally
decide for the option that best meets our criteria," Mr. Zetsche
said.  "So far, I am satisfied with the process. Everything is
going according to plan."

                       Sustainable Mobility

In light of the recent discussion on climate protection, the
DaimlerChrysler chairman gave a clear commitment on sustainable
mobility: "For us at DaimlerChrysler, the emission-free
automobile is and remains the long-term goal of our 'roadmap'
toward sustainable mobility."  This roadmap has three main
components:

   1) the consequent further improvement of combustion engines,
      with and without a hybrid option;

   2) high-quality and alternative fuels; and

   3) emission-free driving, with the fuel cell as a long-term
      goal.

Since 1990, DaimlerChrysler has reduced its fleet consumption
and the CO2 emissions of its passenger cars in Germany by 30
percent. It has also lowered exhaust emissions by more than 70
percent and particulate emissions by more than 95 percent in
some cases.  The company is also pursuing a strategy "to make
diesel engines as clean as gasoline engines - and gasoline
engines as economical as diesels", says Zetsche.  In the
meantime, every fifth Mercedes vehicle can travel 100 kilometers
on five liters or less.  The smart cdi is the world's best-
selling three-liter car, and also the world champion when it
comes to low CO2 emissions, emitting only 88 grams of CO2 per
kilometer.

DaimlerChrysler believes that BLUETEC, the clean diesel
technology, which reduces some emissions by up to 80 percent,
can play a key role in helping to further optimize combustion
engines. Hybrid technology also enables combustion engines to be
operated more efficiently.  

DaimlerChrysler was already developing hybrid vehicles in the
early 1990s and today has a 60 percent share of the world market
for hybrid buses, making it the world market leader.  "Every new
vehicle we develop will be engineered to accommodate a hybrid
drive train," says Mr. Zetsche.

High grade and alternative fuel plays a key role in ensuring
that modern engines can be used effectively.  Because oil
reserves are finite, DaimlerChrysler is preparing its engines
for use with alternative fuels as well.  In addition to natural
gas and bioethanol, the company is focusing on second-generation
biofuels - in other words, on synthetic biomass-to-liquid fuels
(BTL), which are made from straw or waste wood.

In the long term, DaimlerChrysler is committed to the fuel cell
drive, which is not only environmentally friendly but also
highly efficient.  The company is a pioneer in this key
technology, having presented the first-ever fuel cell vehicle
back in 1994. "However, the fuel cell remains a technology of
the future.  There is still a long way to go," Mr. Zetsche
emphasizes.

Mr. Zetsche therefore called on politicians, the oil industry
and automakers to work together in order to create, for example,
an appropriate legal framework, the necessary infrastructure, a
hydrogen supply network, and the requisite automotive technology
in order to address the many questions that remain unanswered
with regard to fuel cell technology.

In 2006, DaimlerChrysler invested EUR5.3 billion in research and
development.  A large part of this was for innovations and
technologies for clean and environmentally friendly vehicles,
including EUR1.4 billion invested in Europe.

                Overview of Strategic Developments

Turning to the development of DaimlerChrysler, Mr. Zetsche
pointed out that the company systematically analyzed its overall
situation throughout 2006 and scrutinized the strategy for each
division.

Implementation of the CORE program continued at the Mercedes Car
Group in 2006.  The aim in 2007, the third and final year of
CORE, is to lay the foundation for the period beyond.  Here the
division is focusing on the introduction of its module strategy,
a sharpened profile of Mercedes-Benz brand and measures that
will further enhance customer satisfaction.  As announced, smart
is now fully integrated into the Mercedes organization and will
become profitable this year.  Taken together, all these measures
will put the Mercedes Car Group back on top and enable it to
achieve at least the seven percent Return on Sales target for
2007, as presented in 2006.

The progress the Chrysler Group has made in terms of
productivity, cost-reducing, and quality improvement has given
it a much more competitive structure than its American
competitors.  The model offensive at Chrysler will continue
between now and 2009 with 20 more all-new vehicles and 13
refreshed models, including a series of very economical
vehicles.  Moreover, the Recovery and Transformation Plan is
very realistic that it also gives up room to offset unforeseen
market developments.

The Global Excellence Program for the Truck Group is boosting
the productivity and worldwide integration of the division,
while maintaining maximum flexibility.  It is enabling the
division to manage cyclical market fluctuations more effectively
and to earn a Return on Sales of at least seven percent over the
entire market cycle.  Depending on the cycle, some years would
be above, and some years would be below this target.  The Truck
Group expects that the Class 8 segment of the U.S. truck market
will decrease by as much as 40 percent, while in Japan the
downturn is expected to be about 25 percent.  However, the
market in Western Europe will at minimum remain stable.

The Financial Services division continued its positive
development with its fifth consecutive record-breaking year in
2006.  With regard to efficiency, the division will set a new
benchmark level - while maintaining a strong focus on its
customer's organization.  Mr. Zetsche: "In addition to providing
our automotive divisions with the best possible support, we plan
to post a 14 to 20 percent Return on Equity."

Mr. Zetsche also provides the approximately 8,000 shareholders
present with a detailed look at the results of 2006, in which
the company generated revenues of EUR151.6 billion and recorded
an operating profit of EUR5.5 billion.  The DaimlerChrysler
Group's net income increased by 13 percent to EUR3.2 billion.

Due to the continued implementation of its efficiency-boosting
programs, DaimlerChrysler expects an considerable increase in
profitability over the next three years.  "In the medium term we
aim to achieve a Return on Net Assets of at least 10 percent
after taxes."  A more detailed earnings forecast for the full-
year 2007 will be presented to coincide with publication of the
company's financial results for the first quarter on May 15,
2007.

                         Proposed Dividend

The Board of Management and the Supervisory Board proposed to
the Annual Meeting that DaimlerChrysler pay a dividend of
EUR1.50 per share for 2006 (2005: EUR1.50).  This corresponds to
a dividend sum of EUR1.5 billion (2005: EUR1.5 billion).  This
recommendation takes into consideration the operating profit and
cash flow development in 2006, as well as the outlook for
subsequent years.

                       About DaimlerChrysler

Based in Stuttgart, Germany, DaimlerChrysler AG (NYSE:DCX) (FRA:
DCX) -- 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 company's worldwide operations are located in: Canada,
Mexico, United States, Argentina, Brazil, Venezuela, China,
India, Indonesia, Japan, Thailand, Vietnam and Australia.

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: Weighs Potential Chrysler Buyers' Overhaul Plan
----------------------------------------------------------------
DaimlerChrysler AG will consider not only the purchase price as
one of its criteria for its Chrysler unit's sale, but also the
new owner's overhaul plan for the ailing U.S. division, the Wall
Street Journals reports.

Cerberus Capital Management LP and Magna International Inc. are
expected to submit separate proposals for the unit.  Blackstone
Group LP and Centerbridge Capital Partners LLC of New York have
combined their bidding efforts for Chrysler, WSJ states.

According to the report, DaimlerChrysler CEO Dieter Zetsche is
interested about Chrysler's future because the company's
Mercedes-Benz brand may continue to share technology with the
unit to cut costs.  Sources say Mr. Zetsche has created two
teams -- one will consider the previously reported plan to
overhaul Chrysler; the other will find a buyer or partner for
the division.

Cerberus has created an automotive conglomerate, buying a
controlling share in General Motors Corp.'s financial-lending
arm, GMAC Financial Services, as well as investing in supplier
Delphi Corp., followed by its recent purchase of Tower
Automotive Inc., WSJ observes.

Meanwhile, Blackstone has invested in suppliers TRW Automotive
Holdings Corp. and American Axle & Manufacturing Holdings Inc.  
The Blackstone-Centerbridge team recently talked to United Auto
Workers officials to allay fears over job cuts; they also
revealed plans to keep Chrysler's current management, the report
says.

Concurrently, Magna hopes to acquire Chrysler in order to cross
over into brand-name vehicle manufacturing.  Being the only
automotive company among the bidders, Magna stands to benefit
from union officials' opposition against a sale to a private-
equity buyer, WSJ suggests.

General Motors Corp. may still work out a deal with
DaimlerChrysler if the other bids fail to meet the company's
expectations, amid analysts' claims that Chrysler could fetch up
to US$6 billion, The Detroit News reports.

The Chrysler sale faces a great deal of derision from union
officials and workers, however, which may complicate and disrupt
the impending transaction.

As reported in the TCR-Europe on April 2, the unions of the
United Auto Workers and the Canadian Auto Workers have agreed to
work together to present a united front, saying that their
preferred outcome is for Chrysler to stay within DaimlerChrysler
and vowing they will work toward that goal.

The unions' German counterpart, the IG Metall union, supports
the CAW and UAW's move.  Members of all three unions look
unfavorably on a private equity firm taking over Chrysler
because they fear it would result in more job losses.

                      About DaimlerChrysler

Based in Stuttgart, Germany, DaimlerChrysler AG (NYSE:DCX) (FRA:
DCX) -- 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 company's worldwide operations are located in: Canada,
Mexico, United States, Argentina, Brazil, Venezuela, China,
India, Indonesia, Japan, Thailand, Vietnam, and Australia.

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: Chrysler's Worldwide Sales Fell 2.4% in Q1 2007
----------------------------------------------------------------
The Chrysler Group, DaimlerChrysler AG's U.S. operating unit,
said in a press statement Tuesday that it continues to see
growing sales numbers in markets outside the United States in
the first quarter of 2007.  From January to March, the Chrysler
Group sold 135,907 vehicles outside of the U.S., an increase of
6.8% compared to the same period in 2006.

Those figures for the first three months of the year include an
increase of 3.5% in Canada (53,089 units); 2.2% in Mexico
(30,248 units); and 13.3% outside of North America (52,570
units).  The increases in sales were driven by the worldwide
appeal and strong customer interest in new fuel-efficient models
including the Dodge Caliber, Jeep(R) Compass and the Jeep
Patriot.

"Increasingly, our vehicles will be designed from the start with
world markets in mind," Chrysler Group President and CEO Tom
LaSorda said.  "We are continuing with our global expansion;
2007 will be the year for the largest number of new-vehicle
launches in the company's history."

                First Quarter Global Sales Results

The Chrysler Group's worldwide vehicle sales decreased by 2.4%
in the first three months of 2007 to a total of 673,156 units
(2006: 689,500).

In the highly competitive market environment of the U.S., sales
declined 4.4% to 537,249 units (2006: 562,244).  Following its
most aggressive product launch in company history of 10 all-new
vehicles in 2006, the Chrysler Group continues its product
offensive with the launch of eight all-new vehicles in 2007.  
The company now offers five fuel-efficient, four-cylinder engine
compact car and SUV models in the U.S., including the Chrysler
Sebring, Jeep Compass, Jeep Patriot, Dodge Avenger and the Dodge
Caliber.

DaimlerChrysler Canada started the first quarter of 2007 by
increasing sales 3.5% to 53,089 units (2006: 51,279 units).  
Year-to-date compact SUV and car sales were 8,092 units, up 281%
from the company's year-to-date sales in the same segments last
year.  The Chrysler Group's compact vehicle growth is both
enlarging the segments and, in some cases, taking market share
from traditional leaders.

"We are pleased to have notched our eighth consecutive month of
sales increases in Canada in March, and to have the country's
second best selling lineup through the first quarter of 2007,"
DaimlerChrysler Canada, Inc., President and CEO Reid Bigland
said.  "Clearly our newest fuel efficient models, especially the
Dodge Caliber and Jeep Compass, are changing the marketplace
dynamic for the Chrysler Group in Canada."

Posting its best first quarter since 2002, sales in Mexico rose
2.2% to 30,248 units (2006: 29,584 units).  Chrysler Group SUVs
posted a year-to-date sales gain of 45.4% while total truck
sales increased 0.9%.  Products sold under the Jeep and Dodge
brands posted significant sales gains during the first quarter
of 2007 as the company continues to make headway with Mexican
customers in key segments.

"We are so happy about DaimlerChrysler de Mexico results,"
DaimlerChrysler Mexico President and Managing Director Joe
ChamaSrour said.  "Our new SUV's are conquering new terrains; we
achieved a 45% sales increase in the segment.  This is certainly
a great example about Chrysler Group product offensive."

March 2007 marked 22 consecutive months of year-over-year sales
gains, and sales outside of North America increased 13.3% to
52,570 units during the first quarter (2006: 46,393 units).

Demand for the Dodge brand continues as Dodge Caliber sales
outperformed all other Chrysler Group vehicles, becoming the
company's top-selling vehicle outside North America with sales
of 7,964 units year-to-date.  Jeep Grand Cherokee and Chrysler
300C vehicle sales were a close second and third, showing
balanced sales of the top products from each of the Chrysler
Group's three brands.

"The efforts of our sales teams in all of our International
regions contributed to this first quarter performance,"
Executive Director of International Sales and Marketing Thomas
Hausch said.  "We have said that our business outside North
America has a key role in the Chrysler Group's Recovery and
Transformation plan.  These markets have solid teams in place to
help grow our business, and with the right products tailored to
meet the needs of global markets, there is lot of potential to
reach new customers."

           Further Improved Global Presence Key Element
                in Recovery and Transformation Plan

A strong international footprint is one of the key elements of
the Chrysler Group's Recovery and Transformation Plan, which was
announced on February 14.  The plan aims to return the company
to profitability by 2008 and provide the basis for long-term
competitiveness.  The plan includes material and fixed costs
initiatives, revenue enhancements and work force and production
capacity reductions, with a goal of achieving a 2.5% return on
sales by 2009.  The plan also evolves the company's business
model in three key areas: improving global presence by
aggressively capitalizing on opportunities in new markets and
new segments while defending and growing North American
business; leveraging alliances, partnerships and business
relationships to accelerate growth; and focusing more intensely
on customers and brands as part an ongoing commitment to product
leadership.

                       About DaimlerChrysler

Based in Stuttgart, Germany, DaimlerChrysler AG (NYSE:DCX) (FRA:
DCX) -- 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 company's worldwide operations are located in: Canada,
Mexico, United States, Argentina, Brazil, Venezuela, China,
India, Indonesia, Japan, Thailand, Vietnam and Australia.

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: Completes La Cruz Plant Maintenance
-----------------------------------------------------------
Venezuelan state-run oil firm Petroleos de Venezuela SA has
concluded the maintenance work at its Puerto La Cruz plant's
4,000-barrel per day alkylation unit, Business News Americas
reports.

As published in the Troubled Company Reporter-Latin America on
March 16, 2007, the company reported a fire of "moderate
intensity" in the Puerto La Cruz alkylation facilities.  The
fire was due to a failure in the power head, resulting in a
broken seal and leakage of the flammable liquid.  No one was
injured and the supply of fuel and other by products were
guaranteed.

Petroleos de Venezuela said in a statement that the works
include:

          -- replacing valves, pipes and control equipment; and
          -- repairing pumps.

BNamericas relates that the CRP and Isla de Curazao refineries
supplied alkylate -- used to produce gasoline -- while the
Puerto La Cruz plant underwent maintenance works.

According to BNamericas, Petroleos de Venezuela will revamp
Puerto La Cruz to use HDH Plus refining technology.  

Petroleos de Venezuela's research and development unit, Intevep,
developed HDH Plus as a specialty refining method for the
nation's heavy and extra-heavy sour crude oils.

The overhaul will be completed in 2010, 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: Inks Sale Agreement with CMS Energy
------------------------------------------------
The Venezuelan government has signed an accord with CMS Energy
Corp. for the sale of the latter's interest in power utility
Seneca, Business News Americas reports.

BNamericas underscores that Seneca serves Nueva Esparta,
providing power to 120,000 clients on Margarita and Coche
islands.  The utility has a capacity of 22 megawatts and is CMS
Energy's sole business in Venezuela.

CMS Energy said in a statement that the sale will close by the
end of April.  It includes the firm's 88% equity ownership in
Seneca, certain associated generating equipment and other assets
of US$106 million.  The company will use sale proceeds to lessen
parent debt and invest in CMS Michigan utility Consumers Energy.

According to BNamericas, the government decided to nationalize
Seneca and Electricidad de Caracas.  The government also wants
to nationalize power company Eleval in Carabobo.

Venezuelan state oil firm Petroleos de Venezuela will initially
manage Seneca and Electricidad de Caracas, BNamericas states.

                      About CMS Energy

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

                        *     *     *

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 April 2 to April 6, 2007
-----------------------------------------------------

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

ARG Boden                2.000      9/30/08      ARS    42.1548
Argent-Par               0.630     12/31/38      ARS    57.8667
Colombia TES             4.750      2/23/23      COP    59.6017
Petroleos de Venezuela   5.500      4/12/37      USD    73.2120
Vontobel Cayman         10.400      4/30/07      CHF    74.1000
Vontobel Cayman         10.700     12/28/07      CHF    65.3500
Vontobel Cayman         11.200     12/28/07      CHF    67.7500
Vontobel Cayman         11.850     12/28/07      CHF    66.5500
Vontobel Cayman         16.800     12/28/07      CHF    73.9000
Vontobel Cayman         22.850     12/28/07      CHF    43.4500


* Large Companies with Insolvent Balance Sheets
-----------------------------------------------
                                Total
                                Shareholders  Total
                                Equity        Assets
Company                 Ticker  (US$MM)       (US$MM)
-------                 ------  ------------  -------
Arthur Lange             ARLA3      (8.88)      56.71
Kuala                    ARTE3     (33.57)      11.86
Bombril                  BOBR3    (781.53)     473.67
Chiarelli SA             CCHI3     (58.72)      36.44
CIC                      CIC    (1,883.69)  22,312.12
Telefonica Hldg          CITI   (1,481.31)     307.89
Telefonica Hldg          CITI5  (1,481.31)     307.89
SOC Comercial PL         COME     (738.69)     456.86
DTCOM-DIR To CO          DTCY3      (6.05)      10.04
Aco Altona               EALT3     (64.92)      92.96
Estrela SA               ESTR3     (63.08)     112.36
F Guimaraes              FGUI3    (224.56)      24.63
Bombril Holding          FPXE3  (1,064.31)      41.97
CIMOB Partic SA          GAFP3     (44.38)     121.74
Gazola                   GAZ03     (43.13)      22.28
Hercules                 HETA3    (233.64)      33.23
DOC Imbituba             IMBI3     (19.84)     192.80
IMPSAT Fiber Networks    IMPTQ     (17.16)     535.01
Kepler Weber             KEPL3     (22.20)     478.81
Minupar                  MNPR3     (83.99)      62.75
Wetzel SA                MWET3     (21.35)     116.85
Nova America SA          NOVA3    (266.34)      42.47
Paranapanema SA          PMAM3     (53.36)   3,268.96
Paranapanema-PREF        PMAM4     (53.36)   3,268.96
Telebras-CM RCPT         RCTB30    (59.79)     228.35
Schlosser                SCL03     (55.17)      51.93
Teka                     TEKA3    (236.45)     540.81
Telebras SA              TELB3     (59.79)     228.35
Telebras-CM RCPT         TELE31    (59.79)     228.35
Telebras SA              TELE41    (59.79)     228.35
Tectoy                   TOYB3     (51.84)      18.72
TEC Toy SA-Pref          TOYB5     (51.84)      18.72
TEC Toy SA-PF B          TOYB6     (51.84)      18.72
Tectoy SA                TOYBON    (51.84)      18.72
Texteis Renaux           TXRX3     (65.19)      75.90
Varig SA                 VAGV3  (8,194.58)   2,169.10  
FER C Atlant             VSPT3    (151.49)   1,914.18
WIEST                    WISA3     (92.66)     107.73


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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
delos Santos, Christian Toledo, and Junald Ango, Editors.

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

This material is copyrighted and any commercial use, resale or
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