TCRLA_Public/070413.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

          Friday, April 13, 2007, Vol. 8, Issue 73

                          Headlines

A R G E N T I N A

AGILENT TECHNOLOGIES: Wins US$94-Million Deal with U.S. Army
ARROW ELECTRONICS: Q1 2007 Earnings Conference Call Set April 24
ARROW ELECTRONICS: Forbes Names Firm to Global 2000 List
CASPLAST SRL: Proofs of Claim Verification Ends on May 23
CLINICA PRIVADA: Trustee To File General Report in Court Monday

DISTRIMAE SRL: Proofs of Claim Verification Deadline Is June 20
EL CIEBAL: Trustee To File General Report in Court Tomorrow
FRUIT PUREE: Proofs of Claim Verification Is Until May 2
GEARBULK HOLDING: Moody's Assigns Loss-Given-Default Rating
PROLINE SA: Trustee To File General Report in Court on Monday

TRANSPORTES EL SOL: Individual Reports Due in Court Monday

* ARGENTINA: Sells Up to US$750 Mil. of 10-Year Bonds Due 2017
* Euler Hermes Launches Newest Latin American Subsidiary

B E R M U D A

GLOBAL CROSSING: Moody's Assigns Loss-Given-Default Rating
INTELSAT: Pursuing Ways To End Terrorist Group's Signal Piracy
SEA CONTAINERS: GNER Joins Virgin/Stagecoach in East Coast Bid

B R A Z I L

AMR CORP: Pays US$285-Million Balance of Sr. Sec. Revolving Loan
BANCO DO BRASIL: Raises Export Funding to US$3.2B in First Qtr.
BANCO NACIONAL: Pledges BRL591 Million for Copasa Investments
BANCO NACIONAL: Approves BRL8-Million Financing to Bionnovation
BANCO NACIONAL: Ratifies BRL513MM Financing for Atlantico Sul

BRASIL TELECOM: Approves Share Grouping Proposal
COMPANHIA DE BEBIDAS: Unit Faces Strike from Argentine Truckers
COMPANHIA PARANAENSE: Will Invest BRL693 Million in 2007
EUTELSAT COMMS: Moody's Assigns Loss-Given-Default Rating
METSO CORPORATION: AGM Okays 2006 Financial Results

PETROLEO BRASILEIRO: UBS Analyst Reiterates Buy Rating on Shares
PETROLEO BRASILEIRO: Unit Inks US$866MM Construction Contracts
TECUMSEH PRODUCTS: Brazilian Unit Provides Restructuring Update
TELE NORTE: Will Assess Non-Voting Shares Public Offer Proposal
TRW AUTOMOTIVE: Plans to Refinance US$2.5-Bil. Credit Facilities

USINAS SIDERURGICAS: Two Shareholders To Sell 16MM Common Shares
VOLKSWAGEN GROUP: Selects Semcon as Brazilian Expansion Partner

* IDB Board Okays US$300-Million Loan to Empresa Brasileira

C A Y M A N   I S L A N D S

AHFP COAST: Will Hold Final Shareholders Meeting on June 14
AHFP COMBINATORICS: Sets Final Shareholders Meeting for June 14
AHFP DKR QS: Will Hold Final Shareholders Meeting on June 14
AHFP JUPITER: Sets Final Shareholders Meeting for June 14
AHFP KEEL: Will Hold Final Shareholders Meeting on June 14

AHFP LANGLADE: Sets Final Shareholders Meeting for June 14
AVALON (CAYMAN): Holding Final Shareholders Meeting on June 14
ENHANCED LOAN: Will Hold Final Shareholders Meeting on June 14
ING-ORYX CLO: Sets Final Shareholders Meeting for June 14
MEITRAN HOLDING: Will Hold Final Shareholders Meeting on May 2

MUFFIN ASSET: Sets Final Shareholders Meeting for June 14
NZB ABSOLUTE: Holding Final Shareholders Meeting on May 2
ORACLE EPSILON: Will Hold Final Shareholders Meeting on May 2
S.F. PROPERTIES: Sets Final Shareholders Meeting for June 14
UBS INVESTMENT: Holding Final Shareholders Meeting on May 2

C O L O M B I A

IMPSAT FIBER: Extends Cash Tender Offer Expiration to April 17

* COLOMBIA: Pension Funds May Buy Most of Isagen's Shares

C O S T A   R I C A

ALCATEL-LUCENT: Fitch Affirms & Withdraws BB Issuer Rating

D O M I N I C A N   R E P U B L I C

BANCO INTERCONTINENTAL: Rumors Cause Massive Withdrawals
EMPRESA GENERADORA: Fitch Assigns B- Issuer Default Rating
EMPRESA GENERADORA: S&P Assigns B Corporate Credit Rating
HAINA FINANCE: S&P Puts B Rating on US$150 Million Senior Notes

E C U A D O R

* ECUADOR: Bond Prices Rise As Default Concerns Abate

E L   S A L V A D O R

ALCATEL-LUCENT: To Acquire Tropic Networks Inc.
ALCATEL-LUCENT: Completes Gazprom Neft Network Project

G U A T E M A L A

BRITISH AIRWAYS: CEO Discounts Rumors on bmi Acquisition Talks
BRITISH AIRWAYS: May Purchase Up to 15 Airbus Aircrafts

M E X I C O

AMERICAN AIRLINES: Union Urges Execs to Face Bonuses Issue
BERRY PLASTICS: Completes Stock-for-Stock Merger with Covalence
BERRY PLASTICS: Covalence Deal Cues Moody's to Cut Rating to B2
FORD MOTOR: Unit Plans to Hike Exports to US$2.7 Billion in 2007
GENERAL MOTORS: Suspending Advertising at Don Imus' Radio Show

GRUPO MEXICO: Court Reinstates Napoleon Urrutia as Union Head
INTERNATIONAL RECTIFIER: Wedbush Maintains "Hold" Rating on Firm
PORTRAIT CORP: Can Assume Lease Pact with Lakemont Industrial
SOLO CUP: Welcomes Steve Jungmann to SVP-Consumer Sales Role
UNITED RENTALS: Considers Asset Sale to Boost Shareholder Value

UNITED RENTALS: Wayland Hicks To Step Down as Chief Executive

P A N A M A

CABLE & WIRELESS: Equipment Glitch Disrupts Service
CABLE & WIRELESS: Names New Managers for Two Stores

P A R A G U A Y

CODERE FINANCE: Moody's Assigns Loss-Given-Default Rating

P E R U

NUTRO PRODUCTS: Product Recalls Cues Moody's To Review Ratings

P U E R T O   R I C O

B&G FOODS: Credit Suisse Assigns "Underperform" Rating on Firm
CARLOS VALLEJO: Case Summary & Five Largest Unsecured Creditors

T R I N I D A D   &   T O B A G O

PAYLESS SHOESOURCE: Names Bill May as Exec. Vice President & COO

V E N E Z U E L A

CMS ENERGY: Names 11 Incumbents Seeking Re-Election to Board
DAIMLERCHRYSLER AG: Meets with Chrysler Bidders Except Kerkorian
PETROLEOS DE VENEZUELA: Dresdner Urges Investors to Buy Bonds
PETROLEOS DE VENEZUELA: Spots Overlapped Orders by Investor
PETROLEOS DE VENEZUELA: Assures Campo La Paz Grease Production

* VENEZUELA: Hugo Chavez Slams President Bush's Ethanol Project


                         - - - - -


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


AGILENT TECHNOLOGIES: Wins US$94-Million Deal with U.S. Army
------------------------------------------------------------
Agilent Technologies Inc. has been awarded a US$94 million
contract by the U.S. Army Aviation & Missile Command Redstone
Arsenal.  Under the contract, Agilent Technologies will deliver
its AN/PRM-35 Radio Test Set or RTS over six years, beginning in
2008, to the U.S. Army Product Manager Test, Measurement and
Diagnostic Equipment organization.

Uninterrupted communications is critical to protection and
management of deployed personnel.  The RTS is designed to test
field radios in the harshest of environments. It is part of the
U.S. Army's Test Equipment Modernization mission to improve the
readiness and reduce operating and support costs of the Army's
current and future systems.  Totaling up to 12,000 radio test
sets and related services, the contract represents the single
largest ever awarded in its category.

"This is a significant achievement for Agilent," said Tom
Burrell, vice president and general manager of Agilent's Signal
Network Division.  "It represents an enormous win in one of our
key growth initiatives.  We are continuing to invest in
delivering superior and advanced test technology to the U.S.
Department of Defense and its prime contractors."

The Army Aviation and Missile Life Cycle Management Command or
AMCOM, is headquartered at Redstone Arsenal, Alabama.  
Established in 1941, it is a major subordinate command of the
Army Material Command.  AMCOM is committed to keeping supported
systems ready for combat.

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.


ARROW ELECTRONICS: Q1 2007 Earnings Conference Call Set April 24
----------------------------------------------------------------
Arrow Electronics Inc. will host a conference call to discuss
the company's first quarter earnings at 10:00 a.m. Eastern Time
on April 24.

The live conference call is accessible by telephone at 800-811-
8830 (toll-free) or 913-981-4904 for participants outside the
United States and Canada.  The call ID is 2133437.

Audio replay of the call will be available through May 1,2007.

The replay numbers are:

   -- 888-203-1112 for the United States and Canada; and
   -- 719-457-0820 for callers from other countries.

The access code is 2133437.

The conference will also be available via Web cast.  To access
the live Web cast, visit http://www.arrow.com/investor.

                     About Arrow Electronics

Headquartered in Melville, New York, Arrow Electronics Inc.
-- http://www.arrow.com/-- provides products, services and  
solutions to industrial and commercial users of electronic
components and computer products.   Arrow serves as a supply
channel partner for nearly 600 suppliers and more than 130,000
original equipment manufacturers, contract manufacturers and
commercial customers through a global network of over 270
locations in 53 countries and territories.

The company operates in France, Spain, Portugal, Denmark,
Estonia, Finland, Ireland, Latvia, Lithuania, Norway, Sweden,
Italy, Germany, Austria, Switzerland, Belgium, the Netherlands,
United Kingdom, Argentina, Brazil, Mexico, Australia, China,
Hong Kong, Korea, Philippines and Singapore.

                          *     *     *

As reported on March 30, Moody's affirmed Arrow Electronics'
senior preferred stock at Ba2 and senior subordinated stock at
Ba1.

Arrow Electronics carries Fitch's 'BB+' issuer default rating.
The company's senior unsecured notes and senior unsecured bank
credit facility also carry Fitch's 'BB+' rating.  The rating
outlook is positive.


ARROW ELECTRONICS: Forbes Names Firm to Global 2000 List
--------------------------------------------------------
Forbes has named Arrow Electronics Inc. to its annual ranking of
the world's largest companies, the Forbes Global 2000.  Arrow
ranked 1017 overall, up from 1077 in 2006, and ranked within the
top half of the more than 70 companies listed in its industry
category, technology hardware and equipment.

"We are honored to be recognized by Forbes on this prestigious
listing and to be ranked so highly among so many other well
respected companies around the world," said William E. Mitchell,
chairman, president and chief executive officer, Arrow
Electronics. "This recognition is a testament to our industry
leadership position and our strategy to outgrow the market while
generating premium financial performance.  We continue to create
a competitive advantage for our customers and suppliers alike
through our global, value-added capabilities and demand creation
activities."

The Forbes Global 2000 is a comprehensive list of the world's
largest, and most powerful, public companies. Forbes uses four
measures -- sales, market value, assets and profits -- to
produce a composite measure of size.

                     About Arrow Electronics

Headquartered in Melville, New York, Arrow Electronics Inc.
-- http://www.arrow.com/-- provides products, services and  
solutions to industrial and commercial users of electronic
components and computer products.   Arrow serves as a supply
channel partner for nearly 600 suppliers and more than 130,000
original equipment manufacturers, contract manufacturers and
commercial customers through a global network of over 270
locations in 53 countries and territories.

The company operates in France, Spain, Portugal, Denmark,
Estonia, Finland, Ireland, Latvia, Lithuania, Norway, Sweden,
Italy, Germany, Austria, Switzerland, Belgium, the Netherlands,
United Kingdom, Argentina, Brazil, Mexico, Australia, China,
Hong Kong, Korea, Philippines and Singapore.

                          *     *     *

As reported on March 30, Moody's affirmed Arrow Electronics'
senior preferred stock at Ba2 and senior subordinated stock at
Ba1.

Arrow Electronics carries Fitch's 'BB+' issuer default rating.
The company's senior unsecured notes and senior unsecured bank
credit facility also carry Fitch's 'BB+' rating.  The rating
outlook is positive.


CASPLAST SRL: Proofs of Claim Verification Ends on May 23
---------------------------------------------------------
Hector Palma, the court-appointed trustee for Casplast SRL's
reorganization proceeding, verifies creditors' proofs of claim
until May 23, 2007.

The National Commercial Court of First Instance No. 25 in Buenos
Aires, with the assistance of Clerk No. 50, approved a petition
for reorganization filed by Casplast, according to a report from
Argentine daily La Nacion.

Mr. Palma 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 Casplast 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 Casplast's accounting
and banking records will be submitted in court.

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

The informative assembly will be held on March 10, 2008.  
Creditors will vote to ratify the completed settlement plan
during the assembly.

The debtor can be reached at:

          Casplast SRL
          Teniente General Juan D. Peron 1410
          Buenos Aires, Argentina

The trustee can be reached at:

          Hector Palma
          Rodriguez Pena 694
          Buenos Aires, Argentina


CLINICA PRIVADA: Trustee To File General Report in Court Monday
---------------------------------------------------------------
Jorge Ricardo Lofiego, the court-appointed trustee for Clinica
Privada Parque SRL's reorganization proceeding, will submit to
court a general report containing an audit of the company's
accounting and banking records on April 16, 2007.

Mr. Lofiego verified creditors' proofs of claim until
Dec. 22, 2006.  He then presented the validated claims in court
as individual reports on Feb. 15, 2007.  The National Commercial
Court of First Instance in Buenos Aires determined the verified
claims' admissibility, taking into account the trustee's opinion
and the objections and challenges raised by Clinica Privada and
its creditors.

The trustee can be reached at:

          Jorge Ricardo Lofiego
          Bolivar 691
          Buenos Aires, Argentina   


DISTRIMAE SRL: Proofs of Claim Verification Deadline Is June 20
---------------------------------------------------------------
Jorge Alberto Vazquez, the court-appointed trustee for Distrimae
SRL's bankruptcy proceeding, verifies creditors' proofs of claim
until June 20, 2007.

Mr. Vazquez will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 2 in Buenos Aires, with the assistance of Clerk
No. 3, 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 Distrimae 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 Distrimae's
accounting and banking records will be submitted in court.

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

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

The debtor can be reached at:

          Distrimae SRL
          Angel Carranza 2020
          Buenos Aires, Argentina

The trustee can be reached at:

          Jorge Alberto Vazquez
          Bartolome Mitre 2593
          Buenos Aires, Argentina


EL CIEBAL: Trustee To File General Report in Court Tomorrow
-----------------------------------------------------------
Mirta Haydee Addario, the court-appointed trustee for El Ciebal
SRL's bankruptcy proceeding, will submit to court a general
report containing an audit of the company's accounting and
banking records on April 14, 2007.

Ms. Addario verified creditors' proofs of claim until
Feb. 2, 2007.  She then presented the validated claims in court
as individual reports on March 2, 2007.  The National Commercial
Court of First Instance in Buenos Aires determined the verified
claims' admissibility, taking into account the trustee's opinion
and the objections and challenges raised by El Ciebal and its
creditors.

Ms. Addariois also in charge of administering El Ciebal's assets
under court supervision and will take part in their disposal to
the extent established by law.
        
The trustee can be reached at:

         Mirta Haydee Addario
         Lavalle 1454
         Buenos Aires, Argentina  


FRUIT PUREE: Proofs of Claim Verification Is Until May 2
--------------------------------------------------------
Sergio Mazzitelli, the court-appointed trustee for Fruit Puree
Concentrates SA's bankruptcy proceeding, verifies creditors'
proofs of claim until May 2, 2007.

Mr. Mazzitelli will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 25 in Buenos Aires, with the assistance of Clerk
No. 49, 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 Fruit Puree 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 Fruit Puree's
accounting and banking records will be submitted in court.

La Nacion did not state the reports submission dates.

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

The debtor can be reached at:

          Fruit Puree Concentrates SA
          Talcahuano 4265
          Buenos Aires, Argentina

The trustee can be reached at:

          Sergio Mazzitelli
          Viamonte 1546
          Buenos Aires, Argentina


GEARBULK HOLDING: 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 corporate families in the Transportation
Services, Services, Homebuilding and Building Products,
Chemical, Retail and Apparel and Restaurants, Wholesale
Distribution, and Other sectors last week, the rating agency
confirmed its Ba2 Corporate Family Rating for Gearbulk Holding
Limited.

Moody's also assigned a Ba2 probability-of-default-rating to the
company.

Debt ratings remain unchanged in conjunction with the
implementation of Moody's Loss Given Default and Probability of
Default rating methodology for existing non-financial
speculative-grade corporate issuers in Europe, Middle East and
Africa.

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%).

Gearbulk -- http://www.gearbulk.com/-- is an international  
shipping company providing high quality transportation services
for various industrial sectors.  The company owns and operates a
fleet of over 60 vessels, consisting primarily of open hatch
gantry craned (OHGC) vessels plus has interests in several
terminals, used for handling, storing & distributing cargoes.
About 75% of cargo transported is unitized products, the
remainder being general or bulk cargoes, the majority of which
is carried under contracts of affreightment.  It has a network
of offices located in 16 countries including Belgium, Australia,
Argentina, Indonesia, United Kingdom, Norway, among others.


PROLINE SA: Trustee To File General Report in Court on Monday
-------------------------------------------------------------
Jorge Juan Gerhkovich, the court-appointed trustee for Proline
SA's bankruptcy proceeding, will submit to court a general
report containing an audit of the company's accounting and
banking records on April 16, 2007.

Mr. Gerhkovich verified creditors' proofs of claim until
Dec. 20, 2006.  He then presented the validated claims in court
as individual reports on March 5, 2007.  The National Commercial
Court of First Instance in Buenos Aires determined the verified
claims' admissibility, taking into account the trustee's opinion
and the objections and challenges raised by Proline and its
creditors.

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

The trustee can be reached at:

         Jorge Juan Gerhkovich
         Avenida Corrientes 1847
         Buenos Aires, Argentina


TRANSPORTES EL SOL: Individual Reports Due in Court Monday
----------------------------------------------------------
Luis Humberto Chelala, the court-appointed trustee for
Transportes El Sol SRL's bankruptcy proceeding, will present
creditors' validated claims as individual reports in the
National Commercial Court of First Instance in Buenos Aires on
April 16, 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 Transportes El Sol and its creditors.

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

Mr. Chelala verified creditors' proofs of claim until
Feb. 3, 2007.

Mr. Chelala will also submit to court a general report
containing an audit of Transportes El Sol's accounting and
banking records on May 29, 2007.

Mr. Chelala is also in charge of administering Transportes El
Sol'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 Humberto Chelala
         Avda Corrientes
         Buenos Aires, Argentina


* ARGENTINA: Sells Up to US$750 Mil. of 10-Year Bonds Due 2017
--------------------------------------------------------------
The Argentine government has issued 10-year bonds for up to
US$750 million, published reports say, citing a statement from
the Economy Ministry.

The bonds, known as Bonars, will mature in 2017 and pay interest
at 7 percent.

The ministry's statement also disclosed that the government has
congressional approval to issue Bonar bonds up to US$2.5
billion.  

Proceeds from the sale will be used to refinance maturing debt.

According to Bloomberg, the new bonds are sold in the local
market to stop the country's creditors, from the 2001 default,
to seize payments on the new bonds in international courts.

                       *     *     *

Fitch Ratings assigned these ratings on Argentina:

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


* Euler Hermes Launches Newest Latin American Subsidiary
--------------------------------------------------------
Euler Hermes has announced the official launch of its newest
Latin American subsidiary -- Euler Hermes Argentina.

Located in Buenos Aires, Euler Hermes Argentina will provide a
host of products and services to Argentine clients and give
access to the Group's international network.  In parallel, Euler
Hermes clients worldwide will benefit from the new local risk
underwriting presence in the region.

"Argentina is a very important market for both the Euler Hermes
Group and our clients that are looking to trade to and from
Latin America," said Arjan van de Wall, Euler Hermes ACI Senior
Vice President and Director of International Development,
Marketing and Strategy.  "The Latin American region has a very
high economic growth potential and offers enormous opportunities
for exporters."

Argentina has the second largest GDP in Latin America after
Brazil, and a very dynamic economy with an average growth rate
of 9% over the last four years.

"With most of the trade flow in the Americas going from north to
south, and vice versa, we deemed it imperative - in order to
better serve our clients - for us to have representatives in
close proximity to the risk source," adds Mr. van de Wall.  "By
the end of 2007, our Group will be present in countries
representing 75% of Latin American GDP."

Euler Hermes Argentina is the Group's third subsidiary in Latin
America behind the establishment of business units in Mexico and
Brazil in 1999.

Euler Hermes is the worldwide leader in credit insurance and one
of the leaders in bonding and guarantees.  With 5,500 employees
in 49 countries, Euler Hermes offers a complete range of
services for the management of customer receivables and posted a
consolidated turnover of EUR2.01 billion in 2006.

                        *     *     *

Fitch Ratings assigned these ratings on Argentina:

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




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


GLOBAL CROSSING: 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 corporate families in the
Telecommunications, Media and Technology sectors last week, the
rating agency confirmed its B3 Corporate Family Rating for
Global Crossing (UK) Finance plc and assigned a B2 probability-
of-default rating to the company.

Debt ratings remain unchanged in conjunction with the
implementation of Moody's Loss Given Default and Probability of
Default rating methodology for existing non-financial
speculative-grade corporate issuers in Europe, Middle East and
Africa.

                                             Projected
                           POD      LGD      Loss-Given
   Debt Issue              Rating   Rating   Default
   ----------              -------  -------  --------
   10.75% Senior Secured
   Regular Bond/Debenture
   Due 2014                  B3      LGD4       63%

   11.75% Senior Secured
   Regular Bond/Debenture
   Due 2014                  B3      LGD4       63%

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 Global Crossing

Headquartered in Florham Park, New Jersey, Global Crossing Ltd.
-- http://www.globalcrossing.com/-- provides telecommunication  
services over the world's first integrated global IP-based
network, which reaches 27 countries and more than 200 major
cities around the globe including Bermuda, Argentina, Brazil,
and the United Kingdom.  Global Crossing serves many of the
world's largest corporations, providing a full range of managed
data and voice products and services.  The company filed for
chapter 11 protection on Jan. 28, 2002 (Bankr. S.D.N.Y. Case No.
02-40188).  When the Debtors filed for protection from their
creditors, they listed USUS$25,511,000,000 in total assets and
USUS$15,467,000,000 in total debts.  Global Crossing emerged
from chapter 11 on Dec. 9, 2003.

At Sept. 30, 2006, Global Crossing Ltd.'s balance sheet
reflected a US$131 million stockholders' deficit.  At
June 30, 2006, the company reported US$1.87 billion in total
assets and US$1.95 billion in total liabilities, resulting to a
stockholders' deficit of US$86 million.  It also reported a
US$173 million stockholders' deficit on Dec. 31, 2005.

                         About GCUK

Global Crossing (U.K.) Telecommunications Ltd. provides a full
range of managed telecommunications services in a secure
environment ideally suited for IP-based business applications.
The company provides managed voice, data, Internet and e-
commerce solutions to the strong and established commercial
customer base, including more than 100 U.K. government
departments, as well as systems integrators, rail sector
customers and major corporate clients.  In addition, GCUK
provides carrier services to national and international
communications service providers.

Global Crossing (U.K.) Telecommunications operates a high-
capacity U.K. network comprising over 5,600 route miles of fiber
optic cable connecting 150 towns and cities and reaching within
just over one mile of 64% of U.K. businesses.  The U.K. network
is linked into the wider Global Crossing network that connects
more than 300 major cities and 30 countries worldwide, and
delivers services to more than 600 cities, 60 countries and 6
continents around the globe.


INTELSAT: Pursuing Ways To End Terrorist Group's Signal Piracy
--------------------------------------------------------------
Intelsat Ltd. issued a statement with regard to the unauthorized
use of one of its satellites by the Liberation Tigers of Tamil
Eelam, a Sri Lanka-based terrorist group.  The U.S. State
Department lists the Liberation Tigers as a foreign terrorist
organization.

Intelsat officials, including its technical experts, met with
Sri Lanka's Ambassador to the United States, Bernard
Goonetilleke, on  April 10 to discuss the steps Intelsat is
taking to address the unauthorized use of one of its satellites
by the Liberation Tigers.  During the meeting, Intelsat's
General Counsel, Phillip Spector, said, "Intelsat does not
tolerate terrorists or others operating illegally on its
satellites.  Since we first learned of the Liberation Tigers'
signal piracy, we have been actively pursuing a number of
technical alternatives to halt the transmissions.  We are clear
in our resolve to ending this terrorist organization's
unauthorized use of our satellite."

The Sri Lanka Embassy and Intelsat agree that these illegal
transmissions by the Liberation Tigers are a violation of Sri
Lankan and U.S. laws.

Following the discussion, Ambassador Goonetilleke said, "I am
satisfied that Intelsat is taking these unauthorized
transmissions very seriously, and believe it would do all that
it can to stop the terrorist transmissions.  I am confident that
Intelsat will continue to cooperate with Sri Lankan authorities
in this matter."

Headquartered in Bermuda, Intelsat, Ltd.
--http://www.intelsat.com/-- offers telephony, corporate  
network, video and Internet solutions around the globe via
capacity on 25 geosynchronous satellites in prime orbital
locations.  Customers in approximately 200 countries rely on
Intelsat's global satellite, teleport and fiber network for
high-quality connections, global reach and reliability.  It is
owned by Apollo Management, Apax Partners, Madison Dearborn, and
Permira.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Jan. 18, 2007, Fitch Ratings affirmed Intelsat, Ltd.'s Issuer
Default Rating at 'B'.  Fitch said the rating outlook was
stable.

Fitch assigned these new ratings on Intelsat, Ltd. (Bermuda):

   -- US$600 million senior unsecured floating-rate notes due
      2015 'CCC+/RR6'; and

   -- Proposed US$1 billion guaranteed senior unsecured term
      loan due 2014 'BB-/RR2'.

Fitch affirmed these ratings:

Intelsat (Bermuda), Ltd.:

   -- Issuer Default Rating 'B';
   -- Senior unsecured guaranteed notes 'BB-/RR2'; and
   -- Senior unsecured non-guaranteed notes 'CCC+/RR6'.

Intelsat Intermediate Holding Company, Ltd:

   -- Issuer Default Rating 'B'; and
   -- Senior unsecured discount notes 'B-/'RR5'.

Intelsat Subsidiary Holding Company, Ltd.:

   -- Issuer Default Rating 'B';
   -- Senior secured credit facilities 'BB/RR1'; and
   -- Senior unsecured notes 'BB-/RR2'.

Intelsat Corp:

   -- Issuer Default Rating 'B';
   -- Senior secured credit facilities 'BB/RR1';
   -- Senior secured notes 'BB/RR1'; and
   -- Senior unsecured notes 'B/RR4'.

In addition, Fitch withdrew these ratings due to its
refinancing:

Intelsat (Bermuda), Ltd:

   -- US$600 million senior unsecured credit facility CCC+/RR6'.

Intelsat Holding Corporation (PanAmSat Holding Corporation):

   -- Issuer Default Rating 'B.


SEA CONTAINERS: GNER Joins Virgin/Stagecoach in East Coast Bid
--------------------------------------------------------------
Great North Eastern Railways Ltd. will tie up with Virgin Trains
and Stagecoach to mount a joint bid for the East Coast Main
Line, the franchise it agreed to let go in 2006, reports say.

According to The Western Mail, GNER will take a 10% stake in the
new franchise if their bid is successful.  Virgin and Stagecoach
will share the remaining 90%.  The Department of Transport,
which requires bids to be submitted in June, approved the tie-
up.

GNER is currently running East Coast services under a temporary
management agreement until a successful bidder is chosen.

The other bidders included in the Department of Transport's
short list were Arriva, First Group and National Express.

"The management capability within the GNER team will allow us to
submit an innovative and compelling bid," Stagecoach Group CEO,
Brian Souter and Virgin's Sir Richard Branson disclosed in their
joint statement.

GNER Holdings chairman Bob Mackenzie welcomed the move.  

"This is a great opportunity to work with Virgin and Stagecoach
to take performance on this flagship route to an even higher
level," Mr. Mackenzie was quoted by RailwayPeople.com as saying.  
"We are determined to work with stakeholders who rely on the
East Coast franchise by meeting their aspirations for frequent,
fast, accessible and good quality services in the future."

As reported in the TCR-Europe on Dec. 11, 2006, the government
decided to end GNER's GBP1.3-billion franchise agreement to
operate the East Coast main line railway after the company was
unable to meet a 10% revenue growth requirement in 2005,
stipulated under the terms of its franchise agreement.

GNER suffered disappointing passenger growth, soaring
electricity prices and the effect of the 2005 London bombings,
while parent firm Sea Containers has filed for bankruptcy
protection in the U.S.

                           About GNER

Headquartered in London, United Kingdom -- Great North Eastern
Railway (GNER) Ltd. -- http://www.gner.co.uk/-- operates high-  
speed express train services on the East Coast Main Line. Most
of their trains run between London King's Cross and either
Edinburgh Waverley or Leeds.

                      About Sea Containers

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

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

Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor
represents the Debtors in their restructuring efforts.  When the
Debtors filed for protection from their creditors, they reported
US$1.7 billion in total assets and US$1.6 billion in total
debts.




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


AMR CORP: Pays US$285-Million Balance of Sr. Sec. Revolving Loan
----------------------------------------------------------------
AMR Corporation, the parent company of American Airlines, Inc.,
provided an update on actions taken in the first quarter of 2007
as part of its ongoing efforts to strengthen its balance sheet
and build a stronger financial foundation.
    
American Airlines has paid in full the US$285 million principal
balance of its senior secured revolving credit facility, which
had been fully drawn since its establishment in December 2004.  
AMR's US$444 million term loan facility remains outstanding.
    
The company said that the revolving credit facility may be
redrawn, subject to certain conditions, and repaid from time to
time depending on various factors, such as economic and industry
conditions and the company's financial condition.
    
American Eagle Airlines, Inc., its wholly owned subsidiary, has
prepaid US$79 million in principal amount of aircraft debt.  The
prepayment, which occurred in February, is incremental to AMR's
US$1.3 billion in scheduled principal payments in 2007.
    
AMR anticipates ending the first quarter of 2007 with
US$5.8 billion in cash and short-term investments, including a
restricted balance of nearly US$500 million, compared to a cash
and short-term investment balance of US$4.8 billion, including a
restricted balance of US$510 million, in the first quarter of
2006.
    
AMR also said that it expects to complete by mid-April the
refinancing of US$350 million in municipal bonds that originally
were issued in 1990 to help fund the development of American's
Alliance Maintenance and Engineering Base in Fort Worth, Texas.

The closing of the transaction is subject to certain government
approvals.  The refinanced bonds, to be issued by
AllianceAirport Authority, Inc., will have a blended interest
rate of 5.46%, down from a rate of 7.5% in the current bonds,
and a final maturity of Dec. 1, 2029.
   
AMR estimates that by paying down the revolving credit facility
balance, prepaying the aircraft debt and refinancing the
maintenance facility bonds, as described above, it will
eliminate US$15 million of its annual net interest expense.
    
"The company believes that these actions illustrate its
continued progress in strengthening its balance sheet, which is
an important component of the company's Turnaround Plan that has
helped to position the company for long-term success," Thomas W.
Horton, executive vice president of finance and planning and
chief financial officer of AMR said.  "While there is more work
to do, the company is building a stronger company by reducing
debt and increasing liquidity while continuing to find ways to
grow revenue and reduce costs."
    
AMR's balance sheet improvement include:

   * more than US$1.1 billion, raised through three equity
     issuances in the past 17 months, including the sale of
     13 million new shares in January that raised US$500
     million;
     
   * reduced total debt, which includes the principal   
     amount of airport facility tax-exempt bonds and the present
     value of aircraft operating lease obligations, to
     US$18.4 billion at the end of the fourth quarter of 2006,
     compared to US$20.1 billion a year earlier, the company
     expects to end the first quarter of 2007 with total debt of
     US$17.6 billion;
     
   * reduced net debt, which is defined as total debt less
     unrestricted cash and short-term investments, from
     US$16.3 billion at the end of 2005 to US$13.6 billion at
     the end of 2006, the Company expects to end the first
     quarter of 2007 with net debt of US$12.3 billion.

                          About AMR Corp.

American Airlines -- http://www.AA.com/-- is the world's  
largest airline.  American, American Eagle and the
AmericanConnection regional airlines serve more than 250 cities
in over 40 countries with more than 3,800 daily flights.  
American Airlines flies to Belgium, Brazil, Japan, among others.  
The combined network fleet numbers more than 1,000 aircraft.  
American Airlines is a founding member of the oneworld Alliance,
whose members serve more than 600 destinations in over 135
countries and territories.

At Dec. 31, 2005, AMR Corporation's equity deficit doubled to
US$1.478 billion from a US$581 million deficit from
Dec. 31, 2004.

                        *     *     *

Standard & Poor's Ratings Services, effective June 6, 2006,
placed its ratings on AMR Corp. (B-/Watch Pos/B-3) and
subsidiary American Airlines Inc. (B-/Watch Pos/--) on
CreditWatch with positive implication.


BANCO DO BRASIL: Raises Export Funding to US$3.2B in First Qtr.
---------------------------------------------------------------
Banco do Brasil told Business News Americas that it increased
export financing by 14% to US$3.2 billion in the first quarter
2007, compared to the same quarter in 2006.

According to BNamericas, Banco do Brasil funded about 6,600
export operations in the first quarter 2007.

BNamericas underscores that export financing over the Internet
increased 20.4% to US$677 million in the first quarter 2007,
from the same period in 2006.

Banco do Brasil Foreign Trade Department Manager Antonio Bizzo
told BNamericas that the bank expects to provide US$12 billion
in export financing in 2007, virtually flat on 2006.

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

                        *    *    *

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


BANCO NACIONAL: Pledges BRL591 Million for Copasa Investments
-------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social approved
the first support operations to investments on the environmental
sanitation sector within the Growth Acceleration Program -- PAC
-- ambit, with the use of instruments from the Capital Market
Area.  The contemplated company is Companhia de Saneamento de
Minas Gerais -- Copasa MG -- mixed incorporated company,
controlled by the State of Minas Gerais.  This is the largest
operation carried out by BNDES within basic sanitation, sector
in which the Bank started to operate ten years ago.

The Copasa operation was structured based on the subscription of
debentures by BNDES and by BNDESPAR totaling BRL591 million,
given that BRL450 million allocated in simple debentures and
BRL141 million in convertible debentures.

The total maturity date of the simple debentures is 12 years and
6 years for the convertible debentures, with currency adjustment
based upon the Long-Term Interest Rate, currently at 6.5% per
year.  The operation's total spread is 2.3% per year, given that
the basic spread is 1% per year, according to the priority
defined by BNDES for the Financing Line for Environmental
Sanitation.

The captured resources through the issuance of debentures will
make feasible Copasa's investments plan, which provides for the
expansion and implementation of water and wastewater stations,
modernization of sanitary sewage system and water supply system
and the optimization of the operations.  The investments,
grouped into three main categories -- water supply, sanitary
sewage and loss reduction and control program -- will extend
benefits to 83 municipalities of the State of Minas Gerais,
besides the metropolitan region of Belo Horizonte, supplying
more than 1 million families.  One of the main goals of the
company is to expand its area of operation to more
municipalities.

The project provides for the generation of 2 thousand new job
openings that will be summed to the current company's work force
of 11 thousand employees.

Among the main advantages of the project, one may highlight the
improvement of quality of life and of the population's health,
with the reduction of the incidence of sanitary diseases and the
universalization of the services to the population focuses on
sewage collection and treatment.  Copasa's undertaking will also
contribute for the depolution process of the hydrographic basins
of the State of Minas Gerais, with the preservation and
conservation of water resources.

The environmental sanitation sector is one of the Growth
Acceleration Program's -- PAC -- priorities, which holds amongst
its goals the universalization of the access to treated water
and wastewater.  The mechanisms of the capital market represent
important alternatives for the financing of public interest
projects, above all, within the social infrastructure sector.

Copasa's operation follows Companhia Paulista de Trens
Metropolitanos' -- CPTM -- operation, the first within the
public transportation sector carried out by BNDES in the
beginning of past March, also through the utilization of capital
market instruments. In the CPTM's case, BNDES invested BRL150
million on the buying out of 50% of the Investment Fund on Non-
Standardized Credit Rights (FIDC-NP) and which resources will
render the investments upon the company viable.

From the 853 municipalities of the State of Minas Gerais, Copasa
has 610 municipal concessions for water and supplies
approximately 11.4 million inhabitants.  From those 610
municipalities, the company has sewage concession in 177,
assisting 5.7 million people.

Copasa, the third largest basic sanitation company in the
country is a company characterized by good corporate governance
and good management practices, status which enables the
debenture issuance operation.

Brazil counts on 26 state sanitation companies and approximately
1.7 thousand autarchies or municipal companies. About 95% of the
Brazilian urban population is supplied by public sanitation
companies; given that one third of them face management
problems.  For that reason, BNDES also finances investments that
promote the strengthening of the sector's companies' management
system.

Main items of Copasa's investment project:

   * the Water supply program, which provides for investments on
     implementation of systems in non-benefited places or places
     with precarious assistance;

   * the Sanitary Sewage program, which provides for investments
     involving 65 thousand new residence connections, 660
     kilometers of collection networks, 209 kilometers of
     interceptors, 62 pumping stations, 22 wastewater treatment
     stations; and

   * the Loss Reduction Control program, which provides for
     investments on technological development with the goal to
     assure water meter measurement of 100% of the company's
     water connections and increase the accountability degree of
     Copasa's water measurement system.

The environmental sanitation sector is one of the Growth
Acceleration Program's priorities, which provides for
investments of BRL40 billion in sanitation within 2007/2010.  
BNDES will be the main Government agent for the implementation
of the PAC. In order for that to come to life, the Bank reduced
the basic spread of its financing lines for the sector to 1% and
placed the environmental sanitation sector amongst its
priorities.

                         About BNDES

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

                        *     *     *

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


BANCO NACIONAL: Approves BRL8-Million Financing to Bionnovation
---------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social approved
financing for Bionnovation Produtos Biomedicos S/A, national
company, with units in the city of Bauru and Sao Jose dos Campos
(State of Sao Paulo), which operates in the segment of
biomaterials, implants, prosthetic components and ultrasonic
needle.  It is Profarma's (Support Program for the Development
of the Pharmaceutical Productive Chain) first operation carried
out conjointly with the Bank's capital market area.

The operation, in the amount of BRL8 million, contemplates,
among other things, investments on innovation, with the
development of ultrasonic bit (dentistry equipment) produced
with artificial diamond using own technology.  The high
precision product aims at substitute the conventional high
rotation drills, with the advantage of being practically
painless.

From the total approved by BNDES, BRL3 million will be financing
within the Profarma ambit and BRL5 million will be in stock
control participation.  Thus, the operation, with subscription
of stocks by BNDESPAR, also contributes for the strengthening of
the national company and of the Brazilian capital market.

Currently, Bionnovation counts on 66 employees.  The investment
project supported by BNDES will generate approximately 30 new
direct job posts in the company.

Bionnovation's undertaking purposes the modernization of the
production lines of its industrial units, which are oriented
toward dentistry solutions.  The project also includes the
production of new implants and the performance on research and
development of prosthetic components made of advanced ceramic,
biomaterials, plates and reabsorbing screws.

Among the project's advantages, one may highlight the company's
pioneerism in technology innovation, generating market
differential and accumulation of know-how.  The products to be
produced by Bionnovation will exert positive impact upon the
trade balance, for it will provide the substitution of
importations and the increment of exportations.

The main innovation introduced by the company -- the ultrasonic
bit -- with CVD (Chemical Vapor Deposition) technology, patented
worldwide, consists of the chemical vapor deposition of carbon
which originates a unique artificial diamond crystal.  The
diamond crystal recovers the ultrasonic bit, resulting in a kind
of "drill" for dentistry usage.

The dentistry treatment with the use of the new technology,
besides being almost painless, does not possess that
characteristic cacophony from the conventional drills and offers
low likelihood of rejection or allergic reaction.  Furthermore,
the ultrasonic CVD bits have long useful life of approximately
50 uses compared to only five yielded by traditional drills.

                         About BNDES

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

                        *     *     *

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


BANCO NACIONAL: Ratifies BRL513MM Financing for Atlantico Sul
-------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social S.A. said
in a statement that it has authorized BRL513 million in
financing for the construction of the Atlantico Sul shipyard in
Pernambuco.

Banco Nacional told Business News Americas that the funding
accounts for 77% of the BRL667 million needed for the shipyard.

According to BNamericas, Atlantico Sul will construct 10 Suezmax
vessels to deliver crude oil and refinery products for Petroleo
Brasileiro SA transport unit Transpetro.

Banco Nacional told BNamericas that Atlantico Sul will be
largest shipyard in the southern hemisphere.  It will have a
capacity to process about 100,000 tons of steel yearly for the
construction of large ships, platforms and floating structures.

BNamericas notes that Atlnatico Sul's controlling shareholders
-- holding 49.5% each -- are Camargo Correa and Queiroz Galvao.

The shipyard will be situated near Petroleo Brasileiro's planned
Pernambuco plant, BNamericas states, citing 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.


BRASIL TELECOM: Approves Share Grouping Proposal
------------------------------------------------
Brasil Telecom S.A. reported that in addition to the Material
Fact released on March 8, 2007, the grouping proposal of its
shares was approved at the Extraordinary General Shareholders'
Meeting on April 10, 2007, pursuant to article 12 of Law
6404/76.

                       Share Grouping

The shares will be grouped considering the ratio of 1,000 shares
per 1 share of the same type.  After the share grouping, the
Capital will be represented by 560,950,289 shares, of which
249,597,049 are common shares and 311,353,240 are preferred
shares.

The company's objective includes:

    (1) adjusting the unit quotation value of the shares to a
        more adequate level from a stock market perspective,
        since the quotation of the shares in Reais gives greater
        visibility as compared to the price per 1,000 shares;

    (2) reducing the company's operating costs and its
        shareholders;

    (3) increasing the efficiency of data systems, controls and
        as well as information disclosure to shareholders.

The company disclosed that the Shareholders might adjust their
equity position, at their own criteria, buying or selling, by
type, into lots that are multiples of 1,000 (one thousand)
shares through trading on the Sao Paulo Stock Exchange - BOVESPA
or on over-the-counter market, during April 11, 2007, to
May 11, 2007.

From May 14, 2007, the shares will be grouped and traded with
unit quotation.

According to the company, after May 14, 2007, the eventual
fractional shares will be separated, grouped in whole numbers
and sold in an auction to be carried out on the Sao Paulo Stock
Exchange, with the respective values being credited on the bank
accounts of the owners of the fractional shares, as follow:

   (1) Shareholders holding bank accounts at Banco Bradesco S.A.
       will have the respective amounts directly credited in
       their checking accounts;

   (2) Shareholders that own shares held in the custody of the
       Companhia Brasileira de Liquidacao e Custodia - CBLC,
       will have the respective amounts credited to CBLC.  CBLC
       will be obligated to repay such shareholders via
       depositary brokers;

   (3) The remaining shareholders should proceed to any Banco
       Bradesco S.A. branch of his or her choice to receive the
       respective amounts; and

   (4) Shareholders whose shares are blocked or have outdated
       information will have the respective amounts withheld by
       the company, who will request proof of the cancellation
       of the blocking or identification documents for the
       actual transfer of such amounts by the Banco Bradesco
       S.A.

The American Deposit Receipt Shareholders, representative of the
preferred shares will be changed from de current ratio of 3,000
shares per ADR to 3 shares per ADR.

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

                        *     *     *

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

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


COMPANHIA DE BEBIDAS: Unit Faces Strike from Argentine Truckers
---------------------------------------------------------------
Quilmes, a local subsidiary of Companhia de Bebidas das Americas
SA, has faced protests from Argentine truckers on Tuesday
related to the Argentine-based beer maker's decision to end its
contracts with some distributors, Agencia EFE S.A. reports.

Truckers' Union leader Pablo Moyano disclosed the indefinite
strike resulted from brewer Quilmes' move to terminate pacts
with four distributors beginning in July, EFE relates.

The strike would affect other brewers and harm the distribution
system of Coca-Cola and other companies, according to
Mr. Moyano.  "The strike is for an undetermined period of time,
until an agreement is reached with Quilmes to guarantee jobs at
all the country's distributors for three years," he said.

In addition, Mr. Moyano asserted that Quilmes is planning to cut
eight among the 24 distributors located in Greater Buenos Aires.  
The company has also undertaken a similar reduction in the rest
of the country.

Mr. Moyano, the son of the leader of Argentina's largest labor
confederation, the CGT, said in an interview that he would meet
with Labor Ministry for Tuesday discussing about the plan and
will call Quilmes to change the distribution contracts.

                        About AmBev

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

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

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

                        *     *     *

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


COMPANHIA PARANAENSE: Will Invest BRL693 Million in 2007
--------------------------------------------------------
Companhia Paranaense de Energia Chief Executive Officer Rubens
Ghilardi said in a Web cast that the firm will invest BRL693
million this year.

Last year's investment was higher because Companhia Paranaense
spent BRL400 million in purchasing a 60% stake in the
480-megawatt gas-fired Araucaria power plant, company executives
said in the Web cast.

Mr. Ghilardi told Business News Americas that a significant
proportion of this year's investment will be allocated for
transmission and distribution operations to expand the network
and improve service quality.

According to BNamericas, Companhia Paranaense will invest BRL407
million in distribution and BRL180 million in transmission.  Its
distribution arm will acquire about 69kV and 138kV transmission
infrastructure from the transmission unit.

Mr. Ghilardi told BNamericas, "We made an agreement with [power
regulator] Aneel to transfer all lower-voltage transmission
lines to the distribution company by the end of 2007."

The report says that distribution investments are also aimed at
keeping up with growing power consumption in Parana.

"In the first two months of 2007, power consumption rose 3.3%,
in line with what we expected," Mr. Ghilardi explained to
BNamericas.

BNamericas underscores that the BRL72 million investment for
generation this year includes BRL25 million for the launching of
construction on the 361-megawatt Maua hydroelectric project.  
Companhia Paranaense is constructing the project with power firm
Eletrosul.

According to the report, Companhia Paranaense invested BRL42
million in power generation last year.

BNamericas emphasizes that Companhia Paranaense will try to
obtain new transmission line concessions and sell power from its
generation units at the government power auctions scheduled for
June.

Mr. Ghilardi told BNamericas Companhia Paranaense will register
for all auctions in 2007.  The firm registered to sell power
from the Araucaria plant and is waiting for auction details and
for guarantees by Petroleo Brasileiro for gas supply.

"We need to know if gas for Araucaria will come from a possible
re-gasification unit or through a pipeline to determine the
price of power produced by the plant," BNamericas states, citing
Mr. Ghilardi.

Headquartered in Parana, Brazil, COPEL aka Companhia Paranaense
de Energia SA -- http://www.copel.com/-- transmits and
distributes electricity to more than 3 million customers in the
state of Parana and has a generating capacity of nearly 4,600
MW, primarily from hydroelectric plants.  COPEL also offers
telecommunications, natural gas, engineering, and water and
sanitation services.  The company restructured its utility
operations in 2001 into separate generation, transmission, and
distribution subsidiaries to prepare for full privatization,
which has been indefinitely postponed.  In response, COPEL is
re-evaluating its corporate structure.  The government of Parana
controls about 59% of COPEL.

                        *     *     *

As reported in the Troubled Company Reporter on Dec. 13, 2006,
Moody's America Latina upgraded the corporate family rating of
Companhia Paranaense de Energia aka Copel to Ba2 from Ba3 on its
global scale and to Aa2.br from A3.br on its Brazilian national
scale.


EUTELSAT COMMS: 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 corporate families in the
Telecommunications, Media and Technology sectors last week, the
rating agency confirmed its Ba2 Corporate Family Rating for
Eutelsat Communications SA.

Moody's also assigned a Ba3 probability of default rating to the
company.

Debt ratings remain unchanged in conjunction with the
implementation of Moody's Loss Given Default and Probability of
Default rating methodology for existing non-financial
speculative-grade corporate issuers in Europe, Middle East and
Africa.

                                                      Projected
                            Old POD  New POD  LGD     Loss-Given
   Debt Issue               Rating   Rating   Rating  Default
   ----------               -------  -------  ------  ----------
   Senior Unsecured
   Bank Credit Facility     Ba3      Ba3      LGD4    55%

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
alphanumeric 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%).

Headquartered in Paris, France, Eutelsat Communications SA
offers television and radio broadcasting, video broadcasting,
corporate network, Internet access and mobile communications.  
Eutelsat serves Europe, the Middle East, Africa, Asia, and the
Americas.  One of its worldwide operations is located in Brazil.


METSO CORPORATION: AGM Okays 2006 Financial Results
---------------------------------------------------
Metso Corporation, in its Annual General Meeting, approved the
accounts for 2006 as presented by the Board of Directors and
voted to discharge the members of the Board and the President
and Chief Executive Officer of Metso Corporation from liability
for the financial year 2006.

In addition, the Annual General Meeting approved the proposals
of the Board of Directors to amend the Articles of Association
and to authorize Board of Directors to resolve of a repurchase
of the corporation's own shares and of a share issue.

The Annual General Meeting decided to establish a Nomination
Committee of the Annual General Meeting to prepare proposals for
the following Annual General Meeting in respect of the
composition of the Board of Directors along with the director
remuneration.  Nomination Committee consists of the
representatives appointed by the four biggest shareholders along
with the Chairperson of the Board of Directors as an expert
member.

Matti Kavetvuo was re-elected the Chairperson of the Board and
Jaakko Rauramo was re-elected the Vice Chairperson of the Board.  
Eva Liljeblom, Professor at the Swedish School of Economics and
Business Administration, Helsinki, Finland, was elected as new
member of the Board.  Board members re-elected were Svante Adde,
Maija-Liisa Friman, Christer Gardell and Yrjo Neuvo.  The term
of office of Board members lasts until the end of the next
Annual General Meeting.

The Annual General Meeting decided that the annual remunerations
for Board members be EUR80,000 for the Chairman, EUR50,000 for
the Vice Chairperson and the Chairperson of the Audit Committee
and EUR40,000 for the members and that the meeting fee including
committee meetings be EUR500 for meeting.

The auditing company, Authorized Public Accountant
PricewaterhouseCoopers was re-elected to act as an Auditor of
the corporation until the end of the next Annual General
Meeting.

The Annual General Meeting decided that a dividend of EUR1.50
per share be paid for the financial year which ended on
Dec. 31, 2006.  The dividend will be paid to shareholders who
have been entered as shareholders in the Corporation's
shareholder register maintained by the Finnish Central
Securities Depository Ltd. by the dividend record date,
April 10, 2007.  The dividend will be paid on April 17, 2007.

Headquartered in Helsinki, Finland, Metso Corporation --
http://www.metso.com/-- is a global engineering and technology  
corporation with 2005 net sales of approximately 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.

                        *     *     *
  
The company's 5-1/8% Senior Notes due 2009 carry Moody's
Investors Service's Ba1 rating and Standard & Poor's BB rating.

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


PETROLEO BRASILEIRO: UBS Analyst Reiterates Buy Rating on Shares
----------------------------------------------------------------
Investment bank UBS analyst Gustavo Gattass has reiterated his
"buy" rating on Brazilian state-owned oil firm Petroleo
Brasileiro SA's shares, Newratings reports.

Newratings relates the target price on Petroleo Brasileiro was
raised to US$130.0 from US$110.2.

Mr. Gattass said in a research note that the long-term oil price
estimate for the industry was increased to US$50 per barrels per
day form US$41 barrels per day.  

Exploratory success along with production growth will likely be
a major catalyst for Petroleo Brasileiro's share price going
forward.  The earnings per share estimates for 2007, 2008 and
2009 was decreased by 15% to indicate higher costs, Newratings
states, citing Mr. Gattass.

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.


PETROLEO BRASILEIRO: Unit Inks US$866MM Construction Contracts
--------------------------------------------------------------
The Associated Press reports that Brazilian state oil firm
Petroleo Brasileiro SA's unit Transpetro has signed contracts
totaling US$866 million for the construction of nine new oil
tankers.

According to AP, the project is aimed at increasing Rio de
Janeiro's shipbuilding industry.

Petroleo Brasileiro said in a statement that the Rio Naval
consortium will build:

          -- five Aframax tankers for US$517 million, and
          -- four Panamax oil tankers for US$349 million.

Petroleo Brasileiro told AP that the vessels will join
Transpetro's fleet between 2009 and 2011.  They are part of a
US$2.48-billion program to purchase 26 new oil vessels in an
initial phase.  The first phase will bring about 11,000 direct
jobs in Rio de Janeiro.

AP underscores that the national development bank BNDES funds
the shipbuilding program.  The initiative will lessen Petroleo
Brasileiro's costs for chartering ships and revitalize Brazil's
shipbuilding industry.

Petroleo Brasileiro told AP that it will increase the number of
new oil vessels to 42.

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.


TECUMSEH PRODUCTS: Brazilian Unit Provides Restructuring Update
---------------------------------------------------------------
TMT Motoco do Brasil Ltda., the Brazil-based engine
manufacturing subsidiary of Tecumseh Products Company, has
notified all TMT Motoco employees that the unit's operations
will remain suspended following the statutory expiration of the
unit's previously announced vacation furlough on April 13, 2007.  

As previously indicated, TMT Motoco is currently pursuing a
judicial restructuring under Brazilian bankruptcy law.  TMT
Motoco's request for judicial restructuring was granted by the
Brazilian courts on March 28, and the subsidiary has 60 days
within which to submit a restructuring plan to the court.

In letters being sent to TMT Motoco's approximately 680
Brazilian employees, the employees are being informed that it
has not yet been determined whether and when the unit will
resume operations, and that, for that reason, the employment of
most current TMT Motoco workers will terminate as of the end of
this week, although all payroll obligations to employees will be
paid.

The employees are also being told that if and when TMT Motoco
does resume operations, on either a full or limited basis, any
current TMT Motoco employees in good standing will be offered an
opportunity to apply for re-employment on a preferential basis.

As reported in the Troubled Company Reporter-Latin America on
March 26, 2007, TMT Motoco, the Brazil-based engine-
manufacturing subsidiary of Tecumseh Products Company, filed a
request in Brazil for court permission to pursue a judicial
restructuring.  

TMT Motoco's decision to pursue the judicial restructuring
followed the rejection of its request for a temporary stay
pending its previously announced appeal of a Brazilian court's
decision, entered on March 15, 2007, denying its request to
impose financial restructuring terms on two of its lenders.

               About Tecumseh Products Company

Headquartered in Tecumseh, Mich., Tecumseh Products Company
(Nasdaq: TECUA, TECUB) -- http://www.tecumseh.com/--   
manufactures hermetic compressors for air conditioning and
refrigeration products, gasoline engines and power train
components for lawn and garden applications, submersible pumps,
and small electric motors.  The company has offices in Italy,
United Kingdom, Brazil, France, and India.


TELE NORTE: Will Assess Non-Voting Shares Public Offer Proposal
---------------------------------------------------------------
Tele Norte Leste Participacoes parent company, Telemar
Participacoes, said in a statement that it will assess a
proposal on April 20 to make a public offer for its non-voting
shares.

Business News Americas relates that Telemar Participacoes made a
proposal to launch a public offer for the non-voting or
preferred stock -- around BRL11 billion -- held by minority
shareholders in its subsidiaries:

          -- Tele Norte Leste Participacoes, and
          -- Telemar Norte Leste.

Telemar Participacoes said in a statement that it will pay
BRL35.09 per share for Tele Norte and BRL52.39 a share for
Telemar Norte, which is a 25% premium on the average closing
price for both shares during last 30 days.

According to BNamericas, the offer will still be approved by
investors who hold two-thirds of Tele Norte.

IDC telecoms analyst Brendan Conroy commented to BNamericas that
Telemar Participacoes is in turmoil with minority shareholders
who blocked proposals for restructuring.  If the offer is
ratified, the purchase may help Telemar Participacoes move
forward with its strategy or even proceed with a merger with
Brasil Telecom.

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

The Troubled Company Reporter-Latin America reported on
March 6, 2007, Tele Norte said that it would unify its fixed,
mobile, Internet and entertainment services under the Oi brand.
Tele Norte's fixed line segment would be called Oi Fixo, while
the Internet service Velox would be renamed Oi Velox.  The
integration would be gradually adopted through August 2007.

                        *     *     *

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


TRW AUTOMOTIVE: Plans to Refinance US$2.5-Bil. Credit Facilities
----------------------------------------------------------------
TRW Automotive Holdings Corp., through its subsidiary TRW
Automotive Inc., disclosed its intention to refinance its
existing credit facilities of US$2.5 billion with new credit
facilities in the same amount.  

The new credit facilities are expected to be comprised of a
US$1.4 billion revolving credit facility, a US$600 million Term
Loan A facility and a US$500 million Term Loan B facility.  The
company plans to close the transaction during the second quarter
of 2007.

J.P. Morgan Securities Inc. and Banc of America Securities LLC
are arranging the financing.

                     About TRW Automotive

Headquartered in Livonia, Michigan, TRW Automotive Holdings
Corp. (NYSE: TRW) -- http://www.trwauto.com/-- is an automotive    
supplier.  Through its subsidiaries, the company employs about
63,800 people in 26 countries including Brazil, China, Germany
and Italy.  TRW Automotive products include integrated vehicle
control and driver assist systems, braking systems, steering
systems, suspension systems, occupant safety systems,
electronics, engine components, fastening systems and
aftermarket replacement parts and services.

                        *     *     *

Fitch Ratings affirmed TRW Automotive Holdings Corp.'s BB Issuer
Default Rating, BB+ Senior secured bank lines, BB- Senior
unsecured notes, and B+ Senior subordinated unsecured Notes on
September 2006.


USINAS SIDERURGICAS: Two Shareholders To Sell 16MM Common Shares
----------------------------------------------------------------
Usinas Siderurgicas de Minas Gerais told Dow Jones Newswires
that two of its shareholders -- mining firm Companhia Vale do
Rio Doce and Previ, the pension fund for workers at Banco do
Brasil SA -- will sell about 16.4 million common shares through
a secondary offer.

Dow Jones relates that Companhia Vale will sell 12.035 million
common shares.  Previ will sell 4.365 million common shares.

The report says that the shares' sales were previously disclosed
in November, when Companhia Vale joined the controlling bloc of
Usinas Siderurgicas' shareholders.  The shares that Companhia
Vale will sell don't account for its position in the controlling
group.  As agreed, Companhia Vale would decrease its stake in
Usinas Siderurgicas by selling a portion of its shares to Nippon
Steel Corp., Votorantim Participacoes and Camargo Correa.  The
remaining shares would be sold in a public secondary offer.

According to Dow Jones, Companhia Vale owns a 12.4% stake in
Usinas Siderurgicas, representing 5.9% of the controlling
group's shares.  Previ, which is outside the controlling bloc of
shareholders, holds a 14.9% stake.

Usinas Siderurgicas told Dow Jones that its shares will be sold
in Brazil and in the US as global depositary receipts.

Dow Jones emphasizes that investors can reserve shares from
April 18 through April 24.  Usinas Siderurgicas will disclose
share prices on April 26.

Merrill Lynch is the head coordinator of the offer, which could
be worth BRL1.867 billion, Dow Jones 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.


VOLKSWAGEN GROUP: Selects Semcon as Brazilian Expansion Partner
---------------------------------------------------------------
Volkswagen has chosen Semcon's newly acquired company IVM as its
development partner in Brazil.  IVM has been part of the Semcon
Group since April 1, 2007.  One hundred twenty people will
initially work with assignments at Volkswagen's Trucks & Busses
division in Sao Paulo and Resende.

"IVM's excellent collaboration and long relationship with
Volkswagen has paved the way for this deal," says Stefan
Ohlsson, Senior Vice President Semcon Automotive Research &
Development.  "For us it means that we get a good first foothold
in Brazil.  The country has a steadily growing automotive
industry with many of the leading manufacturers established
here, like General Motors, Scania and AB Volvo.  This new
partnership provides excellent growth potential."

The initial stages of the partnership will involve 120 people
over a three-year period, with the possibility of further
expansion.  This will make Brazil the third largest country,
staff-wise, that Semcon has business in, after Sweden and
Germany.  The undertaking will start with services in the
Engineering Departments, for example Power train, Chassis,
Electric & Electronics, Interior & Body, Quality Assurance,
Finite Elements Simulation and Testing services.

The Brazilian market, along with Russia, India, China and Korea,
are known as the BRICK countries.  Over the next five years it
is expected that the prosperity of all these countries will
increase almost double that of the average for the rest of the
world.  These countries' annual growth rate is expected to be
around 11 per cent, compared to an average global growth rate of
6 per cent.

                        About Semcon

Semcon is 2650 committed people with a passion for product
development, technical information and IT.  Today Semcon is
active in Sweden, Australia, Brazil, China, Germany, Hungary,
Malaysia, Norway and the UK and via partners in Belgium, France,
Portugal and Spain.  Semcon had pro forma sales of around EUR267
million in 2006 and it is listed on the Stockholm Stock
Exchange's Nordic list.

                    About Volkswagen Group

Headquartered in Wolfsburg, Germany, the Volkswagen Group --
http://www.volkswagen.de/-- is one of the world's leading
automobile manufacturers and the largest carmaker in Europe.
With 47 production plants in eleven European countries and a
further seven countries in the Americas, like Mexico, Africa,
and Asia.  Volkswagen has more than 343,000 employees producing
over 21,500 vehicles or are involved in vehicle- related
services on every working day.

                        *     *     *

Volkswagen has been carrying out measures to cut costs and raise
profits, which could affect up to 30,000 jobs.  The potential
job cuts represent about a third of the carmaker's workforce and
three times higher than initial estimates made by former Chief
Executive Bernd Pischetsrieder and former Volkswagen brand head,
Wolfgang Bernhard.

In November 2006, Volkswagen maintained its 2005 earnings
guidance amid rumors it may lower targets.  The company predicts
a year-on-year improvement in both operating profit after
special items and profit before tax this year.  Rumors flew that
the company would slash full-year earnings forecast due to
higher restructuring costs.  The company said the impact of its
workforce reduction measures, which will be charged as special
items in the fourth quarter, will be lower than last year's.

The company also admitted there were no significant improvements
in the economic environment in the first nine months of 2005,
and the overall situation in the important automotive markets
remained difficult.  It also expected tougher competition in the
Chinese and U.S. markets, and the rise in fuel prices to
influence consumer confidence.


* IDB Board Okays US$300-Million Loan to Empresa Brasileira
-----------------------------------------------------------
Inter-American Development Bank's Board of Directors approved
financing for a total of US$300 million to Empresa Brasileira de
Telecomunicacoes S.A. aka Embratel, the Brazilian
telecommunication service provider, to support its 2006-2007
capital expenditure program.

The IDB financing will include an "A-loan" of up to US$80
million from the Bank's ordinary capital and a syndicated "B-
loan" of up to US$220 million, consisting of resources from
financial institutions that subscribe participation agreements
with the IDB.

Embratel is the main operating company held by Embratel
Participacoes S.A. (Embrapar), which in turn is controlled by
Telefonos de Mexico S.A.  The group's portfolio includes local
and long distance telephony, Internet and corporate data
services, satellite communications and cable television.

"The group's strategy of diversifying its services has been
triggered by increasing competition and is in line with the
industry trend of convergence," said IDB Team Leader Jean-Marc
Aboussouan of the IDB Private Sector Department.

The company's capital expenditure program includes investments
for the installation of a 900-kilometer fiber optic cable from
Porto Velho to Manaus, which will free satellite capacity to
serve more remote areas of the Amazon region, and investments in
local telephony access, which will support the development of a
competitive market in the local service segment.




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


AHFP COAST: Will Hold Final Shareholders Meeting on June 14
-----------------------------------------------------------
AHFP Coast will hold its final shareholders meeting on
June 14, 2007, at:

         Queensgate House
         George Town, Grand Cayman
         Cayman Islands

These agendas will be taken during the meeting:

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

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

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

The liquidator can be reached at:

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


AHFP COMBINATORICS: Sets Final Shareholders Meeting for June 14
---------------------------------------------------------------
AHFP Combinatorics will hold its final shareholders meeting on
June 14, 2007, at:

         Queensgate House
         George Town, Grand Cayman
         Cayman Islands

These agendas will be taken during the meeting:

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

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

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

The liquidator can be reached at:

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


AHFP DKR QS: Will Hold Final Shareholders Meeting on June 14
------------------------------------------------------------
AHFP DKR QS will hold its final shareholders meeting on
June 14, 2007, at:

         Queensgate House
         George Town, Grand Cayman
         Cayman Islands

These agendas will be taken during the meeting:

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

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

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

The liquidator can be reached at:

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


AHFP JUPITER: Sets Final Shareholders Meeting for June 14
---------------------------------------------------------
AHFP Jupiter will hold its final shareholders meeting on
June 14, 2007, at:

         Queensgate House
         George Town, Grand Cayman
         Cayman Islands

These agendas will be taken during the meeting:

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

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

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

The liquidator can be reached at:

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


AHFP KEEL: Will Hold Final Shareholders Meeting on June 14
----------------------------------------------------------
AHFP Keel will hold its final shareholders meeting on
June 14, 2007, at:

         Queensgate House
         George Town, Grand Cayman
         Cayman Islands

These agendas will be taken during the meeting:

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

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

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

The liquidator can be reached at:

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


AHFP LANGLADE: Sets Final Shareholders Meeting for June 14
----------------------------------------------------------
AHFP Langlade will hold its final shareholders meeting on
June 14, 2007, at:

         Queensgate House
         George Town, Grand Cayman
         Cayman Islands

These agendas will be taken during the meeting:

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

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

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

The liquidator can be reached at:

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


AVALON (CAYMAN): Holding Final Shareholders Meeting on June 14
--------------------------------------------------------------
Avalon (Cayman) Ltd. will hold its final shareholders meeting on
June 14, 2007, at:

         Queensgate House
         George Town, Grand Cayman
         Cayman Islands

These agendas will be taken during the meeting:

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

   2) hearing any explanation that may be given by the
      liquidators.

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

The liquidators can be reached at:

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


ENHANCED LOAN: Will Hold Final Shareholders Meeting on June 14
--------------------------------------------------------------
Enhanced Loan Facility I, Ltd. will hold its final shareholders
meeting on June 14, 2007, at:

         Queensgate House
         George Town, Grand Cayman
         Cayman Islands

These agendas will be taken during the meeting:

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

   2) hearing any explanation that may be given by the
      liquidators.

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

The liquidators can be reached at:

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


ING-ORYX CLO: Sets Final Shareholders Meeting for June 14
---------------------------------------------------------
Ing-Oryx CLO, Ltd. will hold its final shareholders meeting on
June 14, 2007, at:

         Queensgate House
         George Town, Grand Cayman
         Cayman Islands

These agendas will be taken during the meeting:

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

   2) hearing any explanation that may be given by the
      liquidators.

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

The liquidators can be reached at:

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


MEITRAN HOLDING: Will Hold Final Shareholders Meeting on May 2
--------------------------------------------------------------
Meitran Holding Co., Ltd. will hold its final shareholders
meeting on May 2, 2007, at:

         P.O. Box 1093
         Queensgate House, South Church Street
         George Town, Grand Cayman
         Cayman Islands

These agendas will be taken during the meeting:

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

   2) hearing any explanation that may be given by the
      liquidators.

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

The liquidators can be reached at:

         Liam Jones
         Mark Wanless
         c/o Maples Finance Jersey Limited
         2nd Floor, Le Masurier House
         La Rue Le Masurier, St. Helier
         Jersey JE2 4YE


MUFFIN ASSET: Sets Final Shareholders Meeting for June 14
---------------------------------------------------------
Muffin Asset Finance Corp. will hold its final shareholders
meeting on June 14, 2007, at:

         Queensgate House
         George Town, Grand Cayman
         Cayman Islands

These agendas will be taken during the meeting:

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

   2) hearing any explanation that may be given by the
      liquidators.

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

The liquidators can be reached at:

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


NZB ABSOLUTE: Holding Final Shareholders Meeting on May 2
---------------------------------------------------------
NZB Absolute Healthcare Fund, Ltd., will hold its final
shareholders meeting on May 2, 2007, at 10:00 a.m., at:

         Fourth Floor, One Capital Place
         P.O. Box 847
         George Town, Grand Cayman
         Cayman Islands,

These agendas will be taken during the meeting:

   1) accounting of the liquidation process showing how the
      winding up has been conducted during the preceding year,
      
   2) requesting the members' approval of the liquidation fees
      incurred to date, approval of the liquidator's estimated
      costs to completion, and

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

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

The liquidator can be reached at:

         Trident Directors (Cayman) Ltd.
         Attention: Kimbert Solomon
         P.O. Box 847
         George Town, Grand Cayman KY1-1103
         Cayman Islands
         Telephone: (345) 949 0880
         Fax: (345) 949 0881


ORACLE EPSILON: Will Hold Final Shareholders Meeting on May 2
-------------------------------------------------------------
Oracle Epsilon Funding will hold its final shareholders meeting
on May 2, 2007, at 10:00 a.m., at:

         3rd Floor Royal Bank House, Shedden Road
         George Town, Grand Cayman
         Cayman Islands

These agendas will be taken during the meeting:

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

   2) authorize the liquidator to retain the records of the
      company for a period of five years from the dissolution of
      the company, after which they may be destroyed.

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

The liquidator can be reached at:

         Piccadilly Cayman Limited
         Attention: Ellen J. Christian
         c/o BNP Paribas Bank & Trust Cayman Limited
         3rd Floor Royal Bank House, Shedden Road
         George Town, Grand Cayman
         Telephone: 345 945 9208
         Fax: 345 945 9210


S.F. PROPERTIES: Sets Final Shareholders Meeting for June 14
------------------------------------------------------------
S.F. Properties Holdings Inc. will hold its final shareholders
meeting on June 14, 2007, at:

          Queensgate House
          George Town, Grand Cayman
          Cayman Islands

These agendas will be taken during the meeting:

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

   2) hearing any explanation that may be given by the
      liquidators.

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

The liquidators can be reached at:

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


UBS INVESTMENT: Holding Final Shareholders Meeting on May 2
-----------------------------------------------------------
UBS Investment Funds 1 (Cayman), Ltd. will hold its final
shareholders meeting on May 2, 2007, at 10:00 a.m., at the
office of the company.

These agendas will be taken during the meeting:

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

   2) authorize the liquidator to retain the records of the
      company for a period of six years from the dissolution of
      the company after which they may be destroyed.

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

The liquidator can be reached at:

         Lawrence Edwards
         Attention: Jodi Jones
         P.O. Box 258
         Grand Cayman KY1-1104
         Cayman Islands
         Telephone: (345) 914 8694
         Fax: (345) 945 4237




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


IMPSAT FIBER: Extends Cash Tender Offer Expiration to April 17
--------------------------------------------------------------
IMPSAT Fiber Networks Inc. said in a statement that it has
further extended its cash tender offer for senior guaranteed
convertible notes due 2011 to April 17.

As reported in the Troubled Company Reporter-Latin America on
March 30, 2007, IMPSAT Fiber's cash tender offer, consent
solicitation and waiver for its Series A 6% Senior Guaranteed
Convertible Notes due 2011 and its Series B 6% Senior Guaranteed
Convertible Notes due 2011 was extended.  The Offer was being
made pursuant to an Offer to Purchase and Consent Solicitation
Statement, dated Jan. 29, 2007, and an accompanying Letter of
Transmittal and Consent, as amended by a supplement dated
Feb. 15, 2007, and a second supplement dated Feb. 26, 2007.  The
expiration date of the Offer was on April 3, 2007

Business News Americas relates that IMPSAT Fiber then extended
the deadline to April 10.

IMPSAT Fiber told BNamericas by April 10 -- the previous
expiration date -- it had received valid tenders from holders of
US$66.4 million -- approximately 98% of the outstanding series A
notes -- and US$25.4 million -- almost 99% of the outstanding
series B notes.

IMPSAT Fiber Networks Inc. (OTC: IMFN.OB) --
http://www.impsat.com/-- provides private telecommunications    
networks and Internet services in Latin America.  The company
owns and operates 15 metropolitan area networks in some of the
largest cities in Latin America and has 15 facilities to provide
hosting services, providing services to more than 4,500 national
and multinational client.  IMPSAT has operations in Argentina,
Colombia, Brazil, Venezuela, Ecuador, Chile, Peru and the United
States.

                     Going Concern Doubt

In its audit report on the consolidated financial statements for
year ended Dec. 31, 2006, auditors working for Deloitte & Touche
LLP noted that IMPSAT Fiber Networks, Inc.'s current liquidity
position, high debt obligations, and negative operating results
raise substantial doubt as to its ability to continue as a going
concern.


* COLOMBIA: Pension Funds May Buy Most of Isagen's Shares
---------------------------------------------------------
State-owned energy generator Isagen SA's initial public offering
may be dominated by privately-owned Colombian pension funds,
Juan Diego Ortiz, Isagen's IPO manager relates.

"It is possible that pension funds exhaust the offer in the
first phase," Ortiz told Dow Jones Newswires. "However, we hope
that pension funds leave a stake for common Colombians and
foreigners," Mr. Ortiz added.

According to Dow Jones Newswires, the Colombian Government gives
priority to the social groups to acquire the 19.22%-stake
offering.  These groups include:

   -- Isagen's workers,
   -- labor unions,
   -- former Isagen's employees,
   -- cooperative associations, and
   -- pension funds.

Workers, labor unions, former Isagen employees and cooperative
associations already have offered to buy 1.6% of the company or
COP9.2 billion worth of shares, Mr. Ortiz said.

"All the country's pension funds have expressed interest in
buying Isagen's shares, though they are waiting to see further
information about how many shares will be bought by workers and
former workers," Mr. Ortiz added.

On the contrary, Alejandro Ferrer, corporate analyst at the
country's largest pension fund, Porvenir, downplays Isagen's
executives' enthusiasm because of the two-year restriction to
sell the shares.

Porvenir hasn't decided yet whether to buy Isagen shares, "but
most probably we will do so," Mr. Ferrer added.

No limit is set for the number of shares the funds can purchase.
Remaining shares will be sold to ordinary Colombians and local
and foreign companies in the second round of the process set on
June 2, said Fernando Rico, Isagen's chief executive.

The Colombian Government plans to raise COP592 billion (US$267
million), selling 2.44 million shares of Isagen.  The first
round of this sale is expected to end on May 4, Dow Jones
Newswires related.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
March 8, 2007, Standard & Poor's lifted the country's foreign
credit to BB+ from BB.  Colombia's local currency debt rating
was raised to BBB+ from BBB.




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


ALCATEL-LUCENT: Fitch Affirms & Withdraws BB Issuer Rating
----------------------------------------------------------
Fitch Ratings has affirmed Alcatel-Lucent's BB Issuer Default
Rating with a Stable Outlook, BB Senior Unsecured Rating and F2
Short-term Rating, and simultaneously withdrawn them.

Fitch will no longer provide ratings or analytical coverage on
the company.

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

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

Alcatel-Lucent maintains operations in 130 countries, including,
Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada,
United States, Costa Rica, Dominican Republic, El Salvador,
Guatemala, Peru, Venezuela, Australia, Brunei, and Cambodia.

                        *     *     *

As of Feb. 7, 2007, Alcatel-Lucent's Long-Term Corporate Credit
rating and Senior Unsecured Debt carry Standard & Poor's BB
rating.  It's Short-Term Corporate Credit rating stands at B.

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

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




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


BANCO INTERCONTINENTAL: Rumors Cause Massive Withdrawals
--------------------------------------------------------
Rumors of a probe before the collapse of Banco Intercontinental
were among the main causes of the withdrawals of deposits from
the bank, Dominican Today reports, citing Zunilda Paniagua, a
member of the Banco Intercontinental Liquidator Commission who
testified before the National District 1st Collegiate Court of
the Dominican Republic in favor of the prosecution.

According to Dominican Today, the withdrawals of the savings
were revealed when Ms. Paniagua mentioned a letter that former
Banco Intercontinental head Ramon Baez Figueroa sent Jose Miguel
Soto Jimenez -- who was the Armed Forces Minister -- regarding
the start of a probe into alleged irregularities in the bank
with the issuing of a credit card to former army colonel Pedro
Julio (Pepe) Goico.

Ms. Paniagua admitted that she was aware of Banco
Intercontinental's complaint against Mr. Goico and later learned
from the press that Mr. Figueroa had dropped the charges,
Dominican Today states.

Banco Intercontinental aka Baninter collapsed in 2003 as a
result of a massive fraud that drained it of about US$657
million in funds.  As a consequence, all of its branches were
closed.  The bank's current and savings accounts holders were
transferred to the bank's new owner -- Scotiabank.  The
bankruptcy of Baninter was considered the largest in world
history, in relation to the Dominican Republic's Gross Domestic
Product.  It cost Dominican taxpayers DOP55 billion and resulted
to the country's worst economic crisis.


EMPRESA GENERADORA: Fitch Assigns B- Issuer Default Rating
----------------------------------------------------------
Fitch Ratings has assigned 'B-' local and foreign currency
Issuer Default Ratings to Empresa Generadora de Electricidad
Haina S.A. and its proposed issuance of senior unsecured notes
due 2017.  Concurrently, the proposed issuance has been assigned
a Recovery Rating of 4.  The Rating Outlook is Stable.

Empresa Generadora's ratings reflect its diversified portfolio
of generation assets, its leading market position and its
competitive operating efficiency.  The ratings also incorporate
the risks of operating electric generation assets in the
Dominican Republic, the distribution companies' low collection
and high technical losses, and the government's intention to
renegotiate power purchase agreements or PPAs with generation
companies.  The ratings also reflect the continued support from
the government to the electricity sector and the efforts to make
the Dominican electricity sector self-sustainable.  The Stable
Rating Outlook reflects the expectation of a slow recovery of
the sector, the continued support of the government and the
strengthening of the economy.

The risks associated with operating an electric generation
system in the Dominican Republic stem from the sector's systemic
problems.  Dominican Republic ranks fourth as the country with
the highest electricity losses worldwide, after Congo, its
neighbor Haiti and Moldavia.  Distribution companies have
reported, during the past three years a recovery index of
approximately 54% (i.e., of all the electricity that goes in to
the national grid, only 54% is paid for and the balance
disappears as theft, nonpayment, free electricity and technical
losses).  Empresa Generadora has approached this problem using
cash flow management techniques and regulating its dispatch to
the system to minimize accounts receivables from distribution
companies.

Empresa Generadora benefits from its diversified portfolio of
assets using different fuel sources to generate electricity, its
strong market position and its operating efficiency.  Empresa
Generadora's generation assets are composed of fuel oil, diesel
and coal power generation plants scattered throughout the
country.  This gives Empresa Generadora different positions on
the dispatch merit list (starting from the second thermoelectric
plant to be dispatched in the system after the coal generation
units and ending with peak units).  In addition, Empresa
Generadora is the largest generation company in the country,
with an installed capacity of 667 MW and average generation of
1,758 gigawatt hours (GWh) during 2006.  Empresa Generadora's
operating efficiency compares well with other generation
companies in the country.

Empresa Generadora has an average heat rate of 10,566 British
thermal units (Btu)/kilowatt hour (KWh), and its most efficient
generation unit has a heat rate of 7,800 Btu/KWh, burning heavy
fuel oil also known as fuel oil No. 6.  Empresa Generadora's
credit metrics are considered strong for the rating category.  
Its financial profile is characterized by low leverage and
adequate interest coverage ratios.  The proposed transaction
will increase Empresa Generadora's leverage, as debt will
increase from approximately US$107 million to the amount that is
expected to be issued; however, the transaction will also reduce
Empresa Generadora's upcoming refinancing needs.  As of December
2006, Empresa Generadora's leverage level, as measured by total
debt to EBITDA, was a modest 1.8x, and its interest coverage
ratio, as measured by EBITDA to interest expense, was 5.5x.

The Dominican electricity sector remains highly dependent on
government support and subsidies due to chronic systemic issues.  
The administration has recognized the importance of solving the
challenges facing the power sector and, at the end of 2004,
announced a strategy for this sector to reach financial
sustainability, which was also included in the country's
agreement with the International Monetary Fund.  Key initiatives
to support the sector include improving the cash recovery of
distribution companies by reducing energy losses, increasing
collections, increasing the average revenue of distribution
companies through tariff adjustments and improving the
regulatory framework.  Empresa Generadora's ratings incorporate
the expectation that the Dominican Republic government will not
renegotiate PPA contracts between generation and distribution
companies unilaterally.

Empresa Generadora de Electricidad Haina S.A. is the largest
thermoelectric generator in the Dominican Republic as measured
by installed capacity and electricity generation.  Empresa
Generadora has a total installed thermoelectric capacity of 667
MW and generated a total of 1,758 GWh during 2006.  Empresa
Generadora is 50% owned by Haina Investment Co. Ltd. and 49.97%
by the government of the Dominican Republic, with the balance
owned by former employees of CDE.


EMPRESA GENERADORA: S&P Assigns B Corporate Credit Rating
---------------------------------------------------------
Standard & Poor's Ratings Services assigned 'B' corporate credit
rating to Empresa Generadora de Electricidad Haina S.A. and its
'B' rating to special-purpose financing entity Haina Finance
S.A.'s US$150 million senior notes due 2017.  The outlook is
stable.
     
Haina Finance will issue the bonds and on-lend the funds to
Empresa Generadora to repay outstanding debt obligations and for
corporate purposes.
      
"The ratings on Empresa Generadora reflect the challenges of
operating in the Dominican Republic's electric sector, which is
highly subsidized," said Standard & Poor's credit analyst
Fabiola Ortiz.
      
"This is somewhat offset by the contractual nature of the
revenue stream and the Dominican government's continued support
of the electricity sector," said Ms. Ortiz.
     
The stable outlook reflects Standard & Poor's expectations that
even under the electric sector's expected reforms in the
Dominican Republic, including the government's renegotiation of
the long-term energy sales contracts, Empresa Generadora will
continue to post satisfactory financial indicators and generate
adequate cash flows to continue fulfilling its debt-service
obligations.

Empresa Generadora de Electricidad Haina S.A. is the largest
thermoelectric generator in the Dominican Republic as measured
by installed capacity and electricity generation.  Empresa
Generadora has a total installed thermoelectric capacity of 667
MW and generated a total of 1,758 GWh during 2006.  Empresa
Generadora is 50% owned by Haina Investment Co. Ltd. and 49.97%
by the government of the Dominican Republic, with the balance
owned by former employees of CDE.


HAINA FINANCE: S&P Puts B Rating on US$150 Million Senior Notes
---------------------------------------------------------------
Standard & Poor's Ratings Services assigned 'B' rating to Haina
Finance S.A.'s US$150 million senior notes due 2017.  Standard &
Poor's also assigned 'B' corporate credit rating to Empresa
Generadora de Electricidad Haina S.A.  The outlook is stable.

Standard & Poor's Ratings Services assigned 'B' corporate credit
rating to Empresa Generadora de Electricidad Haina S.A. and its
'B' rating to special-purpose financing entity Haina Finance
S.A.'s US$150 million senior notes due 2017.  The outlook is
stable.
     
Haina Finance will issue the bonds and on-lend the funds to
Empresa Generadora to repay outstanding debt obligations and for
corporate purposes.
      
"The ratings on Empresa Generadora reflect the challenges of
operating in the Dominican Republic's electric sector, which is
highly subsidized," said Standard & Poor's credit analyst
Fabiola Ortiz.
      
"This is somewhat offset by the contractual nature of the
revenue stream and the Dominican government's continued support
of the electricity sector," Ms. Ortiz stated.
     
The stable outlook reflects Standard & Poor's expectations that
even under the electric sector's expected reforms in the
Dominican Republic, including the government's renegotiation of
the long-term energy sales contracts, Empresa Generadora will
continue to post satisfactory financial indicators and generate
adequate cash flows to continue fulfilling its debt-service
obligations.

Empresa Generadora de Electricidad Haina S.A. is the largest
thermoelectric generator in the Dominican Republic as measured
by installed capacity and electricity generation.  Empresa
Generadora has a total installed thermoelectric capacity of 667
MW and generated a total of 1,758 GWh during 2006.  Empresa
Generadora is 50% owned by Haina Investment Co. Ltd. and 49.97%
by the government of the Dominican Republic, with the balance
owned by former employees of CDE.

Haina Finance S.A. is special-purpose financing entity of
Empresa Generadora de Electricidad Haina S.A.




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


* ECUADOR: Bond Prices Rise As Default Concerns Abate
-----------------------------------------------------
Published reports say that Ecuador's bond prices have soared
after default concerns were allayed.

Previously, Ecuadorian President Rafael Correa said that a
restructuring of the country's debts might happen to free up
funds for other governmental programs, like education and
healthcare.

On Tuesday, Ecuador's bond prices jumped 1.61% while the market
remained unchanged on the benchmark JP Morgan's EMBI+ index.  
The yield on the nation's 10% bonds, maturing 2030, fell 0.07
percentage point to 11.08%.  The bonds price was at 91 cents on
the dollar at the close of the market on April 10.

Reuters says the price change was exaggerated due to lack of
market liquidity.

According to Bloomberg, Ecuador's dollar bonds posted the lowest
spread or risk premium since Nov. 29 when Pres. Correa talked
about defaulting and restructuring of the country's US$10
billion foreign debt.

Silvia Marengo, an emerging-market bond manager at Clariden
Bank, was quoted by Bloomberg as saying that the positive trend
in Ecuador's bond prices came as a result of the market's belief
that the nation won't default on its debts.

Meanwhile, the current political upheaval in Ecuador -- where
congressmen who opposed a rewriting of the constitution were
fired -- leaves bondholders uncertain what will it happen to
their investments once the new president gets additional powers,
Reuters says.

                        *     *     *  

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

In addition, these ratings were downgraded:  

   -- Uncollateralized foreign currency bonds to  
      'CCC/RR4' from 'B-/RR4';  

   -- Collateralized foreign currency Par and Discount  
      Brady bonds to 'CCC+/RR3' from 'B/RR3'; and  

   -- Short-term foreign currency IDR to 'C' from 'B'.  

Fitch also affirmed the Country ceiling rating at 'B-'.




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


ALCATEL-LUCENT: To Acquire Tropic Networks Inc.
-----------------------------------------------
Alcatel-Lucent signed an agreement to acquire substantially all
the assets, including all intellectual property of Canadian
metro WDM networking supplier Tropic Networks Inc.

This transaction builds upon the collaboration the two companies
established in July 2004 with the Alcatel-Lucent investment and
global supply agreement.

Bandwidth-hungry services for consumers -- including gaming,
IPTV and video-on-demand -- as well as advanced data services
like mission-critical business applications are leading
operators to increase the flexibility and ease of use of their
optical networks.  This new service growth also requires
automated monitoring processes to maximize network simplicity
for the highest efficiency in service delivery.

Through this acquisition, Alcatel-Lucent takes a new, strategic
step in focusing on cable MSO and telecom operators' key
requirements for simplified network planning, accelerated
wavelength/service provisioning and advanced optical monitoring
technology that eases overall maintenance activities across
their optical infrastructure.

The further integration of key intellectual property developed
by Tropic Networks, namely the Wavelength Tracker, enhances the
competitiveness of Alcatel-Lucent's optical product portfolio
and gives operators the benefit of cost-effectively upgrading
their networks according to the latest innovations in optical
transmission.  In combination with Alcatel-Lucent's ROADM
technology, the advanced optical layer management technology
developed by Tropic Networks delivers the flexibility and
security to maximize network efficiency and operational cost
savings.

In addition, this acquisition provides for uninterrupted supply
to Alcatel-Lucent and Tropic Networks' customers, allowing them
to benefit from integration synergies with the overall Alcatel-
Lucent portfolio.

"Through this transaction, we are strengthening our value
proposition for photonic networks with innovative solutions that
complete both cable and telecom service providers requirements,"
said Romano Valussi, president of Alcatel-Lucent's Optics
activities.  "We are continuing to make strategic moves that
serve our customers with the ability to successfully address new
opportunities for the end-users' benefit."

"The relationship developed over three years has been valuable
and we are proud to join Alcatel-Lucent, the worldwide leader in
optical networking" stated Kevin Rankin, CEO of Tropic Networks.
"Our vision of a fully flexible and scalable optical network is
finding a further expansion with the Alcatel-Lucent's advanced
product portfolio and new opportunities to bring technology
advancements to the market."

                     About Tropic Networks

Headquartered in Ottawa, Canada, Tropic Networks Inc. builds
simple, manageable and flexible metro-regional optical transport
infrastructures.  Tropic Networks developed the TRX-24000 ROADM
platform with patented Wavelength Tracker to help service
providers minimize costs and maximize profits.

                     About Alcatel-Lucent

Headquartered in Paris, France, Alcatel-Lucent
-- http://www.alcatel-lucent.com/-- provides solutions that  
enable service providers, enterprises and governments worldwide
to deliver voice, data and video communication services to end
users.  

Alcatel-Lucent maintains operations in 130 countries, including,
Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada,
United States, Costa Rica, Dominican Republic, El Salvador,
Guatemala, Peru, Venezuela, Australia, Brunei and Cambodia.

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

                          *     *     *

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 Ba3 Corporate Family Rating for
Alcatel-Lucent.  

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: Alcatel-Lucent
                                                      Projected
                           Old POD  New POD  LGD      Loss-Given
   Debt Issue              Rating   Rating   Rating   Default
   ----------              -------  -------  ------   ----------
   Senior Unsecured Bank
   Credit Facility          Ba2      Ba2      LGD3     46%

   4.75% Senior Unsecured
   Conv./Exch. Bond/
   Debenture Due 2011       Ba2      Ba2      LGD3     46%

   US$1.5-billion Senior
   Unsecured Medium-Term
   Note Program             Ba2      Ba2        LGD3   46%

   EUR5-billion Senior
   Unsecured Medium-Term
   Note Program             Ba2      Ba2        LGD3   46%

   6.375% Senior Unsecured
   Regular Bond/Debenture
   Due 2014                 Ba2      Ba2        LGD3   46%

   US$500-million Senior
   Unsecured Regular Bond/
   Debenture Due 2010       Ba2      Ba2        LGD3   46%

   EUR1-billion 4.375% Senior
   Unsecured Regular Bond/
   Debenture Due 2009       Ba2      Ba2        LGD3   46%

   EUR120-million 4.375%
   Senior Unsecured Regular
   Bond/Debenture Due 2009  Ba2      Ba2        LGD3   46%

* Issuer: Lucent Technologies Capital Trust I
                                                       Projected
                           Old POD  New POD  LGD      Loss-Given
   Debt Issue              Rating   Rating   Rating   Default
   ----------              -------  -------  ------   ----------
   US$1750-million 7.75%
   Preferred
   Stock Due 2017           B2       B1       LGD6     94%

* Issuer: Lucent Technologies Inc.

                                                       Projected
                           Old POD  New POD  LGD      Loss-Given
   Debt Issue              Rating   Rating   Rating   Default
   ----------              -------  -------  ------   ----------
   US$1.75-billion Multiple
   Seniority Shelf,
   subordinated,           (P)B2     (P)B1    LGD6     94%

   US$1.75-billion Multiple
   Seniority Shelf
   regular/junior
   preferred stock         (P)B3     (P)B1    LGD6     97%

   US$1.75-billion Multiple
   Seniority Shelf, senior
   unsecured               (P)Ba3    (P)Ba2   LGD3     46%

   8% Subordinate
   Conv./Exch. Bond/
   Debenture Due 2031      B2        B1       LGD6     94%

   2.75% Senior Unsecured
   Conv./Exch. Bond/
   Debenture Due 2023      Ba3       Ba2      LGD3     46%

   2.75% Senior Unsecured
   Conv./Exch. Bond/
   Debenture Due 2025      Ba3       Ba2      LGD3     46%

   US$300-million 6.5%
   Senior Unsecured
   Regular Bond/
   Debenture Due 2028      Ba3       Ba2      LGD3     46%

   US$500-million 5.5%
   Senior Unsecured
   Regular Bond/
   Debenture Due 2008      Ba3       Ba2      LGD3     46%

   US$1.36-billion 6.45%
   Senior Unsecured
   Regular Bond/
   Debenture Due 2029      Ba3       Ba2      LGD3     46%

As of Feb. 7, 2007, Alcatel-Lucent's Long-Term Corporate Credit
rating and Senior Unsecured Debt carry Standard & Poor's BB
rating.  It's Short-Term Corporate Credit rating stands at B.

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


ALCATEL-LUCENT: Completes Gazprom Neft Network Project
------------------------------------------------------
Alcatel-Lucent has completed the project with OAO Gazprom neft,
Russia's fastest-growing oil company, for the transformation of
its corporate network at its oil-processing factory in the city
of Omsk.  

Through the implementation of this new network, Gazprom neft is
focused on improving employee productivity and increasing the
reliability of its communications capabilities.

Gazprom neft chose Alcatel-Lucent to deliver a state-of-the-art
IP communication solution which will provide IP telephony to
more than 3,000 employees of the oil processing factory. Based
on the Alcatel-Lucent OmniPCX Enterprise IP telephony platform,
the solution includes Alcatel-Lucent's newest VoIP handsets.  
All nodes of the network are interconnected to ensure a feature
rich environment and to unite existing systems into a single,
integrated enterprise communication platform.  Alcatel-Lucent
also delivered Alcatel-Lucent IP Touch phones, which provide
advanced capabilities to increase employee productivity,
including "dial-by-name," call forwarding for mobility, and
other advanced communications applications.

"We made our choice in favor of the Alcatel-Lucent solution due
to its flexibility and high reliability. It improves employee
productivity by delivering advanced communications services,
while minimizing downtime," Constantin Yurganov, Gazprom neft
Head of Information technologies, said.  "The new solution will
allow our staff to communicate more effectively, while improving
overall productivity."

"We are very honored to work with Gazprom neft on this network
transformation project," Ivan Makharine, Director of Alcatel-
Lucent enterprise activities in CIS, said.  "Gazprom neft is a
perfect example of a forward-thinking corporation, investing in
a future-proof IP based solution that was designed to fully meet
their requirements."

Implementation of this project will enable Gazprom neft to
significantly enhance the organization's operating efficiency
and raise levels of quality and employee performance.

                      About Gazprom Neft

Headquartered in Moscow, Russia, OAO Gazprom Neft --
http://www.gazprom-neft.ru/-- explores, produces, refines,    
markets, produces and sells petroleum products.  The Company
holds oilfield exploration and development licenses in the
Yamal-Nenets and Khanti-Mansiisk autonomous regions, as well as
in the Omsk and Tomsk regions, and in Chukotka.  The Company's
main oil processing center is the Omsk Refinery.

                     About Alcatel-Lucent

Headquartered in Paris, France, Alcatel-Lucent
-- http://www.alcatel-lucent.com/-- provides solutions that   
enable service providers, enterprises and governments worldwide
to deliver voice, data and video communication services to end
users.  

Alcatel-Lucent maintains operations in 130 countries, including,
Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada,
United States, Costa Rica, Dominican Republic, El Salvador,
Guatemala, Peru, Venezuela, Australia, Brunei and Cambodia.

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

                        *     *     *

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 Ba3 Corporate Family Rating for
Alcatel-Lucent.  

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: Alcatel-Lucent
                                                      Projected
                           Old POD  New POD  LGD      Loss-Given
   Debt Issue              Rating   Rating   Rating   Default
   ----------              -------  -------  ------   ----------
   Senior Unsecured Bank
   Credit Facility          Ba2      Ba2      LGD3     46%

   4.75% Senior Unsecured
   Conv./Exch. Bond/
   Debenture Due 2011       Ba2      Ba2      LGD3     46%

   US$1.5-billion Senior
   Unsecured Medium-Term
   Note Program             Ba2      Ba2        LGD3   46%

   EUR5-billion Senior
   Unsecured Medium-Term
   Note Program             Ba2      Ba2        LGD3   46%

   6.375% Senior Unsecured
   Regular Bond/Debenture
   Due 2014                 Ba2      Ba2        LGD3   46%

   US$500-million Senior
   Unsecured Regular Bond/
   Debenture Due 2010       Ba2      Ba2        LGD3   46%

   EUR1-billion 4.375% Senior
   Unsecured Regular Bond/
   Debenture Due 2009       Ba2      Ba2        LGD3   46%

   EUR120-million 4.375%
   Senior Unsecured Regular
   Bond/Debenture Due 2009  Ba2      Ba2        LGD3   46%

* Issuer: Lucent Technologies Capital Trust I
                                                       Projected
                           Old POD  New POD  LGD      Loss-Given
   Debt Issue              Rating   Rating   Rating   Default
   ----------              -------  -------  ------   ----------
   US$1750-million 7.75%
   Preferred
   Stock Due 2017           B2       B1       LGD6     94%

* Issuer: Lucent Technologies Inc.

                                                       Projected
                           Old POD  New POD  LGD      Loss-Given
   Debt Issue              Rating   Rating   Rating   Default
   ----------              -------  -------  ------   ----------
   US$1.75-billion Multiple
   Seniority Shelf,
   subordinated,           (P)B2     (P)B1    LGD6     94%

   US$1.75-billion Multiple
   Seniority Shelf
   regular/junior
   preferred stock         (P)B3     (P)B1    LGD6     97%

   US$1.75-billion Multiple
   Seniority Shelf, senior
   unsecured               (P)Ba3    (P)Ba2   LGD3     46%

   8% Subordinate
   Conv./Exch. Bond/
   Debenture Due 2031      B2        B1       LGD6     94%

   2.75% Senior Unsecured
   Conv./Exch. Bond/
   Debenture Due 2023      Ba3       Ba2      LGD3     46%

   2.75% Senior Unsecured
   Conv./Exch. Bond/
   Debenture Due 2025      Ba3       Ba2      LGD3     46%

   US$300-million 6.5%
   Senior Unsecured
   Regular Bond/
   Debenture Due 2028      Ba3       Ba2      LGD3     46%

   US$500-million 5.5%
   Senior Unsecured
   Regular Bond/
   Debenture Due 2008      Ba3       Ba2      LGD3     46%

   US$1.36-billion 6.45%
   Senior Unsecured
   Regular Bond/
   Debenture Due 2029      Ba3       Ba2      LGD3     46%

As of Feb. 7, 2007, Alcatel-Lucent's Long-Term Corporate Credit
rating and Senior Unsecured Debt carry Standard & Poor's BB
rating.  It's Short-Term Corporate Credit rating stands at B.

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




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


BRITISH AIRWAYS: CEO Discounts Rumors on bmi Acquisition Talks
--------------------------------------------------------------
William Walsh, chief executive officer of British Airways plc,
dismissed speculations that the carrier is in talks to acquire
smaller rival bmi, The Guardian reports.

Mr. Walsh told The Guardian that he has had no contact with bmi
Chairman Sir Michael Bishop, who holds a 50% stake in bmi.  

He emphasized that BA would not acquire bmi just to protect a
U.S. service, although it may consider a bid for the carrier if
it is up for sale.

"I have always said I would have no difficulty competing with
BMI on the transatlantic route.  I don't believe in closing off
threats like that," Mr. Walsh was quoted by The Guardian as
saying.

                     Iberia Lineas Takeover?

The chief executive also revealed that BA is not interested in
taking over Iberia Lineas Aereas de Espana SA as bilateral
treaties underpinning the latter's Latin American network would
prevent a non-Spanish carrier from acquiring or merging with the
airline.

As previously reported in the TCR-Europe on April 5, British
Airways 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).

                    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: May Purchase Up to 15 Airbus Aircrafts
-------------------------------------------------------
British Airways Plc Chief Executive Willie Walsh told a German
paper that he could imagine buying 10 to 15 Airbus jets.

P-I Reporter relates that British Airways showed no enthusiasm
to be an early client for Airbus A380 -- a 555-passenger,
double-deck plane.  British Airways had said in 2001 that the
aircraft wasn't appropriate for the airline's routes because it
was too big.

Meanwhile, The Boeing Co. -- a competitor of Airbus -- is hoping
to sell British Airways its 747-8, P-I Reporter notes.  Boeing
is also offering the airline the 787 and more 777s, against
Airbus' A350 and A330.  

P-I Reporter underscores that British Airways runs one of the
world's largest fleets of 747-400 passenger planes, planning to
gradually replace the older planes with the 777 rather than
adding more 747s.  British Airways has been evaluating the
747-8.

According to the report, Airbus' A380 sales slow down due, in
part, to a two-year delay in getting the plane into the hands of
clients.  Meanwhile, Boeing needs another big order from an
important airline customer like British Airways, as only
Lufthansa ordered the aircraft.  

It could take several months before British Airways decides
which aircraft to order, P-I Reporter states.

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 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.




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


AMERICAN AIRLINES: Union Urges Execs to Face Bonuses Issue
----------------------------------------------------------
The Allied Pilots Association or APA, representing the 12,000
pilots of American Airlines, described letters that American
Airlines management is delivering to the carrier's three unions
as a "stunt" designed to shift focus away from the large bonuses
airline executives will collect next week.  In the letters,
management reminds the unions that their members cannot
participate in illegal activities as they protest the bonuses.

"It is clear that management is trying to divert attention from
the real issue of executive compensation by engaging in a media
stunt," said APA President Captain Ralph Hunter.  "We have been
telling management for more than a year that they created an
untenable situation when they broke the promise of shared reward
in return for shared sacrifice.  Now they are adding insult to
injury by implying that the unions would promote or condone any
activity in violation of the law."

He noted that APA is planning to highlight the inherent
unfairness of senior executives collecting huge bonuses paid for
by billions in employee givebacks with a rally and march on AMR
headquarters scheduled for Wednesday, April 18.

"Our dispute is with AMR's executives and not our customers,"
Mr. Hunter said.  "We have repeatedly directed our members to
report to work as scheduled and demonstrate their utmost
professionalism on the job.  We understand how angry and
frustrated all AA employees are at the prospect of these obscene
bonus payments and we have provided a perfectly legal means for
them to express their displeasure.

"Rather than spending time trying to shift focus away from the
issue at hand, management needs to acknowledge that it has
created a serious problem with the disparity in income recovery
between executives and rank-and-file employees," he said.  "They
then need to fix the problem and fix it quickly."

                About Allied Pilots Association

Founded in 1963, the Allied Pilots Association
-- http://www.alliedpilots.org/--, the largest independent  
pilot union in the U.S., is headquartered in Fort Worth, Texas.  
APA represents the 12,000 pilots of American Airlines, including
2,799 pilots on furlough.  The furloughs began shortly after the
Sept. 11, 2001 attacks.  Also, several hundred American Airlines
pilots are on full-time military leave of absence serving in the
armed forces.  The union's Web site address is
http://www.alliedpilots.org/

                 About American Airlines Inc.

American Airlines, Inc. (NYSE:AMR) -- http://www.AA.com/--
American Eagle, and the AmericanConnection regional airlines
serve more than 250 cities in over 40 countries with more than
3,800 daily flights.  The combined network fleet numbers more
than 1,000 aircraft.  American Airlines, Inc. and American Eagle
are subsidiaries of AMR Corporation.  It has Latin operations in
Mexico, Dominican Republic, Puerto Rico, Argentina, Bolivia,
Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, Venezuela,
Uruguay, Belize, Costa Rica, El Salvador, Guatemala, Honduras,
Nicaragua and Panama.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
March 26, 2007, Standard & Poor's Ratings Services assigned its
'CCC+' rating to American Airlines Inc.'s (B/Stable/--) US$357
million Alliance Airport Authority special facility revenue
refunding bonds, series 2007, due Dec. 1, 2029.  The bonds are
guaranteed by American's parent, AMR Corp. (B/Stable/B-2), and
are secured by payments made by American to the airport
authority.

As reported in the Troubled Company Reporter on Nov. 21, 2006,
Moody's Investors Service affirmed its 'B3' Corporate Family
rating for AMR Corp. and its subsidiary, American Airlines Inc.


BERRY PLASTICS: Completes Stock-for-Stock Merger with Covalence
---------------------------------------------------------------
Berry Plastics Group Inc. and Covalence Specialty Materials
Holding Corp. have completed their reported stock-for-stock
merger.

Berry Plastics appointed Ira Boots as Chairman and Chief
Executive Officer, and Brent Beeler as Chief Operating Officer,
of the combined company.

In addition, Berry Plastics said that Kip Smith, the former
Chief Executive Officer of Covalence, will continue to run the
Covalence businesses.

                         About Covalence

Covalence Specialty Materials Holding Corp. --
http://www.covcorp.com/ -- produces polyethylene-based plastic  
films, industrial tapes, medical specialties, packaging, and
heat-shrinkable coatings. About Berry Plastics

                       About Berry Plastics

Based in Evansville, Indiana, Berry Plastics Corp. --
http://www.berryplastics.com/-- manufactures and markets rigid  
plastic packaging products.  Berry Plastics provides a wide
range of rigid open top and rigid closed top packaging as well
as comprehensive packaging solutions to over 12,000 customers,
ranging from large multinational corporations to small local
businesses.  The company has 25 manufacturing facilities
worldwide and more than 6,800 employees.  The company has
25 manufacturing facilities worldwide and more than 6,800
employees and 25 manufacturing facilities in the United States,
Mexico, Italy and China.


BERRY PLASTICS: Covalence Deal Cues Moody's to Cut Rating to B2
---------------------------------------------------------------
Moody's Investors Service downgraded the Corporate Family Rating
of Berry Plastics Holdings Corporation to B2.  The outlook is
stable.  This rating action concludes the review for possible
downgrade initiated on March 13, 2007, following the company's
announcement that it had entered into a definitive agreement to
merge with Covalence Specialty Materials Corporation in a
stock-for-stock merger.  The merger was consummated
April 3, 2007.  Additional instrument rating actions are
detailed below.

The downgrade of Berry's Corporate Family Rating reflects
deterioration in credit metrics, change in operating profile and
integration risk in merging with CSMC.  Pro-forma for the
transaction, Debt to EBITDA is 7.2 times and EBIT to Gross
Interest Expense 0.8 times for the twelve months ended
Dec. 31, 2006.

The difference in product lines and size of CSMC represents a
material change to Berry's operating profile and source of
integration risk. Required investments for synergies will leave
no free cash flow for debt reduction in the near term and little
cushion for any negative variance.

Strengths in Berry's pro-forma competitive profile include
annual revenue of US$3.1 billion with significant market shares
in several categories.  The merger will also add additional
diversity to Berry's end markets and increased scale.  The
combined organization is also expected to have good liquidity.

The ratings of Berry were downgraded:

   * Corporate Family Rating, to B2 from B1

   * Probability of Default Rating, to B2 from B1

   * US$225 million senior secured second lien FRN's due 2014,    
     downgraded to B3 (LGD 4, 65%) from B2 (LGD 4, 62%)

   * US$525 million senior secured second lien notes due 2014,
     downgraded to B3 (LGD 4, 65%) from B2 (LGD 4, 62%)

The ratings of Berry are confirmed and will be withdrawn:

   * The Ba1 (LGD 2, 18%) rated US$200 million senior secured      
     revolver due 2012

   * The Ba1 (LGD 2, 18%) rated US$675 million senior secured
     first Lien term loan B due 2013

The ratings of Berry assigned March 16, 2007 are now effective:

   * US$1,200 million senior secured term loan, Ba3 (LGD 2, 27%)

Moody's also affirmed the Speculative Grade Liquidity Rating of
SGL-2.

The rating outlook for Berry is stable.

The ratings of CSMC are confirmed and are to be withdrawn:

   * The Corporate Family Rating of B1

   * The Probability of Default Rating of B1

   * The Ba3 (LGD 3, 34%) rated US$300 million senior secured
     term loan C due 2013

   * The B2 (LGD 4, 62%) US$175 million senior secured second
     lien term loan due 2013

The Speculative Grade Liquidity Rating of SGL-2.

The rating of CSMC was downgraded.  These notes became
obligations of Berry upon the closing of the merger:

   * US$265 million senior subordinated notes due 2016,
     downgraded to Caa1 (LGD 6, 90%) from B3 (LGD 5, 86%)

The ratings and outlook are subject to receipt of final
documentation.


FORD MOTOR: Unit Plans to Hike Exports to US$2.7 Billion in 2007
----------------------------------------------------------------
Ford Otomotiv Sanayi A.S., the Turkish unit of Ford Motor Co.,
is eyeing to boost its exports by 10% to US$2.7 billion in 2007
from US$2.4 billion in 2006, The Detroit News reports citing
Bloomberg News as its source.

According to Turgay Durak, chief executive of Ford Otosan, the
capacity of its Kocaeli plant will increase its production to
300,000 cars a year by October.  The plant currently produces
250,000 cars annually.

Mr. Durak further revealed that Ford Otosan already invested
US$1.6 billion since the 2001 economic crisis in Turkey.

"We have managed to increase our market share to 17.1 percent in
2006 from 17 percent in 2005," Mr. Durak was quoted by the
Turkish Daily News as saying.

                       About Ford Otosan

Headquartered in Istanbul, Turkey, Ford Otomotiv Sanayi A.S. --
http://www.ford.com.tr/-- manufactures and distributes a range  
of Ford vehicles including models such as Fiesta, KA, Street KA,
Explorer, Focus, Focus C-Max and Transit.  As of Aug. 1, 2006,
the Company had three manufacturing plants and 112 dealers
across Turkey, which provides sales, after sales services and
spare parts.  It makes exports mainly to the European region and
the Commonwealth of Independent States.

Ford Motor Co. and Koc Group of Turkey exercise joint control in
Ford Otosan with a 41% stake each, while the remaining 18% is
quoted on the Istanbul Stock Exchange.

                       About Ford Motor Co.

Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures and distributes automobiles    
in 200 markets across six continents.  With more than 280,000
employees worldwide, the company's core and affiliated
automotive brands include Aston Martin, Ford, Jaguar, Land
Rover, Lincoln, Mazda, Mercury, and Volvo.  Its automotive-
related services include Ford Motor Credit Company and The Hertz
Corporation.

                          *     *     *

As reported in the Troubled Company Reporter on Dec. 12, 2006,
Standard & Poor's Ratings Services affirmed its 'B' bank loan
and '2' recovery ratings on Ford Motor Co.

As reported in the Troubled Company Reporter on Dec. 7, 2006,
Fitch Ratings downgraded Ford Motor Company's senior unsecured
ratings to 'B-/RR5' from 'B/RR4'.

As reported in the Troubled Company Reporter on Dec. 6, 2006,
Moody's Investors Service assigned a Caa1, LGD4, 62% rating to
Ford Motor Company's $3 billion of senior convertible notes due
2036.


GENERAL MOTORS: Suspending Advertising at Don Imus' Radio Show
--------------------------------------------------------------
General Motors Corp. told the Associated Press that it was
suspending its advertising at Don Imus' radio talk show.
  
AP relates Mr. Imus' show originates on the New York radio
station WFAN -- owned by CBS Corp. -- and is distributed
nationally on radio by Westwood One.  Mr. Imus' program is worth
about US$15 million to CBS through advertising on WFAN and
syndication fees received from MSNBC and Westwood One.

The report says that Mr. Imus' calling the members of the mostly
black Rutgers women's basketball team as "nap-headed host"
during an April 4 broadcast caused was widely criticized by
civil rights and women's groups.

"This is a very fluid situation, and we'll just continue to
monitor it as it goes forward when he returns to the air,"
General Motors spokesperson Ryndee Carney told AP.

General Motors said it could continue advertising in the show at
a later date, AP says.

However, General Motors would continue to support Mr. Imus'
charitable efforts for children dealing with cancer and autism,
AP states, citing Ms. Carney.

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: Court Reinstates Napoleon Urrutia as Union Head
-------------------------------------------------------------
A court in Mexico has ordered the reinstatement of Napoleon
Gomez Urrutia -- accused of misappropriating US$55 million that
Grupo Mexico SA de C.V. paid to the mineworkers' union as part
of the 1990 privatization of two of its copper mines -- as union
leader, the Associated Press reports.

As reported in the Troubled Company Reporter-Latin America on
April 3, 2006, the National Mining and Metal Workers Union's
ratification of Mr. Urrutia's leadership was rejected by the
Mexican Labor Ministry despite the union's threat of taking
further action alongside other unions.  The ministry insisted
that Elias Morales was the new union head.  The ministry said
that the extraordinary general convention held by the union
between March 18 and 19 in Monclova -- where majority of the
250,000-member union's 130 chapters ratified Mr. Urrutia's
leadership -- failed to meet attendance and other requirements
set out in the union's laws.   The leadership conflict had
sparked a nationwide strike that started on walkouts at Grupo
Mexico's La Caridad mine due to a contract revision.  Several
hundred members joined the demonstration, demanding that the
ministry accept the notification of Mr. Urrtia's leadership,
unfreeze union bank accounts and keep Mr. Morales from involving
in union affairs.  

AP relates that the three judges in the Mexican tribunal
unanimously ruled that the labor department had went beyond its
authority and that it failed to comply with established
procedures in expelling Mr. Urrutia in February 2006.

It wasn't clear whether the ruling could be appealed, AP states.  

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.


INTERNATIONAL RECTIFIER: Wedbush Maintains "Hold" Rating on Firm
----------------------------------------------------------------
Wedbush Morgan Securities analysts have sustained the "hold"
rating on International Rectifier, Newratings reports.

Newratings relates that the analysts reduced their estimates for
International Rectifier, bringing down the 12-month target price
to US$40 from US$44 per share.

There is increased evidence of International Rectifier seeing
some potential late cycle revenue weakness, and delivering
weaker-than-expected game console shipments going forward, the
analysts said in a research note.  

International Rectifier's operational expenditure is rising on
account of the audit and legal fees related to its continuing
financial reporting investigation.  The earnings per share
estimates for this year has been reduced to US$2.27 from
US$2.53, while next year has been brought down to US$2.14 from
US$2.38, Newratings states, citing the analysts.

Headquartered in El Segundo, Calif., International Rectifier
Corporation (NYSE:IRF) -- http://www.irf.com/-- provides
enabling technologies for products that work smarter, run
cooler, and raise the world's productivity-per-watt.  It has
manufacturing facilities in the U.S., Mexico, United Kingdom,
Germany and Italy; and has subsidiaries in Japan and Singapore.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
March 14, 2007, Fitch Ratings has upgraded International
Rectifier Corp.'s (NYSE: IRF) ratings as:

     -- Issuer Default Rating to 'BB' from 'BB-';
     -- Senior Secured Bank Credit Facility Rating 'BB+' from
        'BB';
     -- Subordinated Debt Rating to 'BB-' from 'B+'.

Fitch said the rating outlook was positive.


PORTRAIT CORP: Can Assume Lease Pact with Lakemont Industrial
-------------------------------------------------------------
The Honorable Adlai S. Hardin, Jr., of the U.S. Bankruptcy Court
for the Southern District of New York authorized Portrait
Corporation of America Inc. and its debtor-affiliates to assume
a lease agreement between the Debtor and Lakemont Industrial
Holding Co., dated June 26, 2003.

The Court further granted the Debtors' request to reject
unexpired non-residential real property leases with Award
Realty, Genelle Hardin and Sawgrass Commons, LLC.

Pursuant to the Lakemont Agreement, the Debtors lease premises
in Lakemont West Building IV in Charlotte, North Carolina, where
they conduct warehouse operations for professional portrait
photography products.  The Lakemont Agreement grants the Debtors
the use of the premises consisting of 59,884 square feet of
space with an obligation to pay a monthly base rent of US$17,451
plus estimated monthly expenses of US$4,480.

The Debtors tell the Court that the assumption of the Lakemont
Agreement is necessary to allow the Debtors to continue its
operations while the rejection of the agreement would pose
greater administrative risks than assumption.

The Debtors have determined that it would be difficult to find a
replacement facility for a comparable price and in any event,
relocation of the Debtors' warehouse operations would be
extremely expensive.

The Debtors also relates that the rejection of certain leases
with ARGH and Sawgrass is necessary because the Debtors no
longer require the use of the premises covered by the leases.  
The rejection of these leases would also eliminate the
incurrence of any administrative expenses.

Portrait Corporation of America Inc. -- http://pcaintl.com/--     
provides professional portrait photography products and services
in North America.  The Company operates portrait studios within
Wal-Mart stores and Supercenters in the United States, Canada,
Mexico, Germany and the United Kingdom.  The Company also
operates a modular traveling business providing portrait
photography services in additional retail locations and to
church congregations and other institutions.

Portrait Corporation and its debtor-affiliates filed for
Chapter 11 protection on Aug. 31, 2006 (Bankr S.D. N.Y. Case
No. 06-22541).  John H. Bae, Esq., at Cadwalader Wickersham &
Taft LLP, represents the Debtors in their restructuring efforts.
Berenson & Company LLC serves as the Debtors' financial advisor
and investment banker.  Kristopher M. Hansen, Esq., at Stroock &
Stroock & Lavan LLP represents the Official Committee of
Unsecured Creditors.  Peter J. Solomon Company serves as
financial advisor for the Committee.  At June 30, 2006, the
Debtor had total assets of US$153,205,000 and liabilities of
US$372,124,000.


SOLO CUP: Welcomes Steve Jungmann to SVP-Consumer Sales Role
------------------------------------------------------------
Solo Cup Co. has appointed Steve Jungmann as Senior Vice
President of Consumer Sales and Marketing.

Mr. Jungmann, 44, was most recently employed by Spectrum Brands,
a global consumer products company, where he served as Senior
Vice President of Sales.  Prior to his tenure at Spectrum
Brands, Mr. Jungmann spent 20 years at Kraft Foods, Inc. -- from
2003 to 2005 he served as Kraft's Vice President of Category
Sales.

Mr. Jungmann began his career in sales with Oscar Mayer Foods in
1985.  He holds a bachelor's degree from the University of
Illinois and an M.B.A from Northwestern University's Kellogg
School of Management.

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.


UNITED RENTALS: Considers Asset Sale to Boost Shareholder Value
---------------------------------------------------------------
United Rentals Inc.'s Board Of Directors has authorized
commencement of a process to explore a broad range of strategic
alternatives to maximize shareholder value, including a possible
sale of the company.  The company has retained UBS Investment
Bank and Credit Suisse to act as financial advisors in this
process.

The company cautions that there can be no assurance that the
exploration of alternatives will result in a transaction.  The
company does not expect to disclose further developments
regarding the process unless and until its board of directors
has completed its evaluation or approved a specific transaction.

Greenwich, Conn.-based United Rentals Inc. (NYSE: URI) --
http://unitedrentals.com/-- is an equipment rental company,
with an integrated network of more than 760 rental locations in
48 states, 10 Canadian provinces, and Mexico.  The company's
13,900 employees serve construction and industrial customers,
utilities, municipalities, homeowners and others. The company
offers for rent over 20,000 classes of rental equipment.  United
Rentals is a member of the Standard & Poor's MidCap 400 Index
and the Russell 2000 Index(R).

                        *     *     *

Fitch Ratings recently has placed the ratings for United Rentals
Inc. and United Rentals (North America) Inc. or United Rentals-
NA on Rating Watch Negative.

Fitch has placed these ratings on Rating Watch Negative:

  United Rentals, Inc.

   -- Long-Term Issuer Default Rating 'BB-'.

  United Rentals (North America), Inc.

   -- Long Term Issuer Default Rating 'BB-';
   -- Senior Secured 'BB';
   -- Senior Unsecured 'BB-'; and
   -- Subordinated Debt 'B'.


UNITED RENTALS: Wayland Hicks To Step Down as Chief Executive
-------------------------------------------------------------
United Rentals Inc.'s Chief Executive Officer, Wayland R. Hicks,
64, will retire effective at the annual shareholders' meeting on
June 4, 2007, but will continue to serve on the board as vice
chairman.  He will be succeeded by Michael J. Kneeland as
interim Chief Executive Officer.  Mr. Kneeland currently serves
as Executive Vice President and Chief Operating Officer of
United Rentals.

Bradley S. Jacobs, chairman of United Rentals, said, "We deeply
appreciate Wayland's significant contributions over the past
decade and the leadership he has demonstrated.  We are fortunate
that Wayland will continue to serve on our board and offer his
insights as we take this process forward."

Mr. Jacobs added, "We're pleased that the position of interim
Chief Executive Officer will be filled by Michael Kneeland, who
has been with the company since 1998.  Mike has more than 25
years of experience in the equipment rental industry and is
extremely knowledgeable about our operations and markets."

Greenwich, Conn.-based United Rentals Inc. (NYSE: URI) --
http://unitedrentals.com/-- is an equipment rental company,
with an integrated network of more than 760 rental locations in
48 states, 10 Canadian provinces, and Mexico.  The company's
13,900 employees serve construction and industrial customers,
utilities, municipalities, homeowners and others. The company
offers for rent over 20,000 classes of rental equipment.  United
Rentals is a member of the Standard & Poor's MidCap 400 Index
and the Russell 2000 Index(R).

                        *     *     *

Fitch Ratings recently has placed the ratings for United Rentals
Inc. and United Rentals (North America) Inc. or United Rentals-
NA on Rating Watch Negative.

Fitch has placed these ratings on Rating Watch Negative:

  United Rentals, Inc.

   -- Long-Term Issuer Default Rating 'BB-'.

  United Rentals (North America), Inc.

   -- Long Term Issuer Default Rating 'BB-';
   -- Senior Secured 'BB';
   -- Senior Unsecured 'BB-'; and
   -- Subordinated Debt 'B'.




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


CABLE & WIRELESS: Equipment Glitch Disrupts Service
---------------------------------------------------
A malfunction of a key piece of equipment at Cable & Wireless
resulted in the disruption of the firm's service on April 10,
Caymanian Compass reports.

Cable & Wireless Chief Operating Officer Ian Tibbetts explained
to Caymanian Compass, "The interruption in service was caused by
an unforeseen failure of the master clock which provides
synchronization to the entire system.  This in turn then
resulted in sequential failures."

According to Caymanian Compass, these services were affected:

          -- mobile,
          -- landline,
          -- international,
          -- ADSL Internet,
          -- Blackberry,
          -- 411,
          -- 611,
          -- 811, and
          -- 911.

Caymanian Compass relates that communication to police and other
emergency services was also hindered.

"During the time of the outages we were in frequent
communication with local agencies such as 911 emergency services
to mitigate the impact of the situation," Mr. Tibbetts commented
to Caymanian Compass.

Royal Cayman Islands Police Service Assistant Commissioner of
Police Anthony Ennis told Caymanian Compass that didn't know any
cases where someone had tried to contact the police or emergency
services and could not.  He said there were no serious problems,
nor reports that police operations were seriously affected.

Mr. Tibbetts told Caymanian Compass, "Our team worked on the
problem throughout the morning and most lines of business were
restored by around 1:00 p.m., with the exception of EDGE and
access to 811 and 411."

All systems were functional by April 10 in the evening,
Caymanian Compass says, citing Mr. Tibbetts, who assured that
the failure was a very rare occurrence for Cable & Wireless.

"We would like to assure you that a thorough review is being
conducted and proper measures are being taken to avoid a
reoccurrence of this event in the future," Mr. Tibbetts told
Caymanian Compass.

Mr. Ennis commented to Caymanian Compass that the RCIPS had
these contingencies in place in case of a loss in
communications:

          -- using alternate telephone numbers,

          -- communicating with members of the business
             community through the Internet, and

          -- communicating by radio.

Caymanian Compass underscores that the communication disruption
also affected businesses in the financial sector as well as
retail outlets.

Island Companies duty free stores manager John Rea told
Caymanian Compass that his firm was greatly affected on a day
when there were five cruise ships in port.  The company probably
lost tens of thousands of dollars in sales, as it couldn't use
the machines to verify credit card charges.

"We encouraged our people to use their best judgment, but if
there was any doubt, we wouldn't follow through [with the
sale]," Mr. Rea commented to Caymanian Compass.

Because the cruise ships are only in port for the day, clients
couldn't simply return some other time to make their purchase,
Caymanian Compass says, citing Mr. Rea.  

"As we have always done in the past, we will continue to invest
significantly in our staff, our network, our services and our
customers.  We at Cable & Wireless value your business and again
apologize for the inconvenience this interruption caused," Mr.
Tibbetts told Caymanian Compass.

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


CABLE & WIRELESS: Names New Managers for Two Stores
---------------------------------------------------
Caymanian Compass reports that Cable & Wireless has appointed
new managers for its Anderson Square and Galleria Plaza stores.

According to Caymanian Compass, Tiffany Ebanks was named as
manager of Galleria Plaza.  Ms. Ebanks has been working in
various customer service positions in the firm for three years.

Meanwhile, Peter Smith -- Galleria Plaza's former manager -- was
appointed as the new manager of Anderson Square, where he will
be responsible for a team of 10 retail store agents and
cashiers.  

"Our focus is to put the customer first and both Tiffany and
Peter are very capable of ensuring that their staffs maintain a
high level of customer service.  At Cable & Wireless we are also
very keen on providing development opportunities for our staff
and placing them in positions to best suite their skills.  I am
very confident that both managers will be very successful in
their new positions," Cable & Wireless Vice President of Sales
and Customer Service Ken Guiste told Caymanian Compass.

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 carry 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




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


CODERE FINANCE: 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 corporate families in the Gaming, Lodging
and Leisure, Manufacturing, and Energy sectors last week, the
rating agency confirmed its B1 Corporate Family Rating for
Codere Finance (Luxembourg) S.A.

Moody's also assigned a B1 probability of default rating to the
company.

Debt ratings remain unchanged in conjunction with the
implementation of Moody's Loss Given Default and Probability of
Default rating methodology for existing non-financial
speculative-grade corporate issuers in Europe, Middle East and
Africa.

                                                      Projected
                            Old POD  New POD  LGD     Loss-Given
   Debt Issue               Rating   Rating   Rating  Default
   ----------               -------  -------  ------  ----------
   8.25% Senior Unsecured
   Regular Bond/Debenture
   Due 2015                 B1       B1       LGD4    58%

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
alphanumeric 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%).

Headquartered in Madrid, Spain, Codere S.A. --
http://www.codere.com/-- manages slot machines, bingos, betting  
shops, casinos and racetracks, for the private gaming sector in
Spain, Latin America and Italy.  Codere Finance (Luxembourg)
S.A. is a subsidiary of Codere S.A.

In Latin America, Codere has operations in Argentina, Brazil,
Colombia, Mexico, Panama, Peru and Paraguay.




=======
P E R U
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NUTRO PRODUCTS: Product Recalls Cues Moody's To Review Ratings
--------------------------------------------------------------
Moody's Investors Service placed on review for possible
downgrade the ratings of Nutro Products Inc., including the
corporate family rating of B2.  This review action is based on
Moody's concern that the widening recall of wet pet foods
produced by Nutro Products' third party manufacturer Menu Foods
and Nutro Products' concurrent recall of all its wet pet foods
made with wheat gluten will negatively impact sales and
profitability of highly leveraged Nutro Products, delaying
Moody's previously anticipated reduction in leverage beyond the
end of fiscal 2007.  LGD assessments are also subject to change.

Ratings under review for possible downgrade:

   -- Corporate family rating at B2

   -- Probability of default rating at B2

   -- Senior secured bank term loan at Ba3

   -- Senior secured bank revolving credit agreement
      at Ba3

   -- Senior unsecured notes at B3

   -- Senior subordinated notes at Caa1

On March 16, 2007, Nutro Products announced its voluntary
participation in a recall by third party manufacturer Menu
Foods.  The recall at that time was limited to cuts and gravy
style pet food in cans and pouches manufactured between
Dec. 3, 2006, and March 6, 2007.  Nutro Products' sales of the
recalled product made during that production period was
approximately US$7.6 million, a very small portion of Nutro
Products' annual sales.  On April 10th, however, Menu Foods
expanded its recall to include additional wet pet foods
suspected of containing melamine from Chinese supplied wheat
gluten.  As a result, Nutro Products widened its own recall to
all Nutro Products wet pouched and canned foods made with wheat
gluten, regardless of production date.  Moody's notes that Nutro
Products' dry pet foods -- over 90% of annual sales -- are not
produced by Menu Foods, do not contain wheat gluten and are
unaffected by the recall.  Moody's is concerned that consumers
may slightly shift their premium pet food purchases to organic
products in the wake of the recall and that Nutro Products may
have few near-term options to replace the wet food manufacturing
done by Menu Foods.  Any such disruption could delay the
reduction in debt to EBITDA to the 6 times level previously
anticipated by Moody's to be achieved by the end of fiscal 2007.  
This expectation of 6 times leverage by that date is a key
factor in Nutro Products' ratings.

Moody's review will focus on the impact of the recall on Nutro
Products' sales and profitability, the extent to which insurance
might cover any costs or liabilities, the company's liquidity,
and the impact on operating efficiency and product delivery of
changes, if any, in Nutro Products' sourcing of wet canned and
pouched products.

Based in City of Industry, California, Nutro Products, Inc. --
http://www.nutroproducts.com/-- formulates and manufactures dry
and canned food, biscuits, and treats for dogs and cats.  The
company's brand names include Natural Choice, MAX, and Gourmet
Classics.  Its products are available in feed stores and pet
supply shops, such as Petco and PetSmart, across the US and
Canada.  Nutro Products' products are also distributed
worldwide, including Indonesia, Peru and Austria, among others.




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


B&G FOODS: Credit Suisse Assigns "Underperform" Rating on Firm
--------------------------------------------------------------
Newratings reports that Credit Suisse analysts have reinitiated
coverage of B&G Foods Inc with an "underperform" rating.  

According to Newratings, B&G Foods' the target price was set to
US$20 per share.

B&G Foods' Cream of Wheat buy will boost its sales by US$45
million in the remainder of this year.  The firm will disclose
US$53-million interest expenses.  Its capital spending will
increase almost US$10.4 million in 2007, the analysts in a
research note.

B&G Foods (AMEX: BGF) -- http://www.bgfoods.com/-- and its
subsidiaries manufacture, sell and distribute a diversified
portfolio of high-quality, shelf-stable foods across the United
States, Canada and Puerto Rico.  B&G Foods' products include
jams, jellies and fruit spreads, canned meats and beans, spices,
seasonings, marinades, hot sauces, wine vinegar, maple syrup,
molasses, salad dressings, Mexican-style sauces, taco shells and
kits, salsas, pickles and peppers and other specialty food
products.  B&G Foods competes in the retail grocery, food
service, specialty store, private label, club and mass
merchandiser channels of distribution.  Based in Parsippany, New
Jersey, B&G Foods' products are marketed under many recognized
brands, including Ac'cent, B&G, B&M, Brer Rabbit, Emeril's,
Grandma's Molasses, Joan of Arc, Las Palmas, Maple Grove Farms
of Vermont, Ortega, Polaner, Red Devil, Regina, San Del, Ac'cent
Sa-Son, Trappey's, Underwood, Vermont Maid and Wright's.
Preliminary revenues for the fiscal year ended Dec. 30, 2006,
were US$411.3 million.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 23, 2007, Standard & Poor's Ratings Services affirmed its
loan and recovery ratings on B&G Foods Inc.'s proposed senior
secured credit facilities, following the announcement that the
company will increase the term loan C facility by US$5 million.
Pro forma for the increased add-on portion, the facilities will
total US$230 million.  The secured loan rating is 'B+' (one
notch above the 'B' corporate credit rating) and the recovery
rating is '1', indicating the expectation for full (100%)
recovery of principal in the event of a payment default.

As reported in the Troubled Company Reporter-Latin America on
Feb. 12, 2007, Moody's Investors Service confirmed the B2
corporate family rating, the Ba2 senior secured bank debt
ratings and the Caa1 senior subordinated notes rating of B&G
Foods, Inc.  Moody's also lowered the rating on the company's
senior unsecured notes to B3 from B1.  The rating outlook is
stable.  These rating actions conclude the review for possible
downgrade begun on Jan. 24, 2007, following the company's
announcement of its plan to make a US$200 million debt-funded
acquisition of the Cream of Wheat and Cream of Rice brands from
Kraft Foods, Inc.  In addition, Moody's assigned a Ba2 rating to
the company's new US$225 million senior secured term loan.


CARLOS VALLEJO: Case Summary & Five Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Carlos Munoz Vallejo
        P.O. BOX 949
        San Lorenzo, PR 00754   

Bankruptcy Case No.: 07-01858

Chapter 11 Petition Date: April 9, 2007

Court: District of Puerto Rico (Old San Juan)

Debtor's Counsel: Enrique M. Almeida Bernal, Esq.
                  Almeida & Davila, P.S.C.
                  1431 Ponce de Leon Avenue, Suite 303
                  San Juan, PR 00907

Estimated Assets: US$100,000 to US$1 Million

Estimated Debts:  US$1 Million to US$100 Million

Debtor's Five Largest Unsecured Creditors:

   Entity                     Nature of Claim       Claim Amount
   ------                     ---------------       ------------
American Express           Creditor is seeking to     US$337,404
TR REL SER                 collect US$337,404 for
777 American               an alleged credit card
Express Way                debt and attorneys
Fort Lauderdale, FL 33337  fees.
     
Teresa Hidalgo             Creditors are              US$225,000
Ana Munoz                  requesting in case EAC
P/C Agustin Gomez          2004--0245 (401) that
Tiburcio, Esq.             debtor's property located
Calle Georgetti, No.29     at Munoz Rivera St.,
Caguas, PR 00725           No.200 be turned over
                           to them.

Banco Popular              Banco Popular Visa          US$20,800
GPO Box 362708
San Juan, PR 00936-2708

Luis Rodriguez E           Creditors seeking to        US$10,000
Iliana Lopez               collect d/b/a Refizone
P/C Agustin Gomez          Air Conditioning in
Tiburcio, Esq.             case number KIDC-05-
Calle Georgetti, No.29     063. Debtor has a
Caguas, PR 00725           counterclaim for
                           US$150,000 for breach of
                           contract.

Radio Shack                Credit Card                    US$650
Credit Plan
P.O. Box 689182
Des Moines, IA 50368-9182




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


PAYLESS SHOESOURCE: Names Bill May as Exec. Vice President & COO
----------------------------------------------------------------
Payless ShoeSource Inc. has hired Bill May as executive vice
president and chief operating officer, a new position reporting
to Matt Rubel, chief executive officer and president.

As EVP and COO, Mr. May will lead the finance, store development
and IT functions for the company.  The global sourcing and
supply chain, merchandising, marketing, retail operations, law
and human resources teams will continue to report to Mr. Rubel.  
Mr. May will start in his new role effective April 23.

"Bill has a rich history and strong expertise in operational
leadership at large, retail-oriented enterprises, and
specifically in vertically integrated, specialty retail
operations having served most recently at Tween Brands," said
Mr. Rubel.  "We look forward to Bill joining our executive team
in this important new role.  He will lead our Finance, IT, and
Real Estate to fully integrate them into our strategy and create
high-performing platforms of expertise."

From 2004 to 2007, Mr. May served as executive vice president
and chief operating officer for Tween Brands.  From 2002 to
2003, he was senior vice president, operations, for US$12
billion Fleming Companies, Inc., and president and chief
executive officer for Fleming's Wholesale Grocery Division.  
From 1999 to 2002, he served as vice president, Gap global
distribution, and from 1996 to 1998, he served as executive vice
president and chief operating officer and vice president,
marketing, procurement and MIS for Nash Finch Company.  From
1988 to 1996, he was with Spartan Stores, Inc. serving in
operational leadership roles for the US$2.5 billion wholesale
food distributor and prior to that served in roles at Rayovac,
Certified Grocers, General Motors Corporation, and Bache Halsey
Stuart Shields, where he started his career as an investment
analyst and stockbroker.  Mr. May received a bachelor's degree
in finance from the University of Wisconsin-Whitewater.

Headquartered in Topeka, Kansas, Payless ShoeSource Inc.
(NYSE:PSS) -- http://www.payless.com/-- is a family footwear    
specialty retailer with 4,605 retail stores, as of fiscal
yearend Jan. 28, 2006 (fiscal 2005), including 22 stores not
open for operations.  The Company's Payless ShoeSource retail
stores in the United States, Canada, the Caribbean, Central
America, South America and Japan sold 182 million pairs of
footwear, in fiscal 2005.  The Company operates its business in
two segments -- Payless Domestic and Payless International.  The
Payless Domestic segment includes retail operations in the
United States, Guam and Saipan.  The Payless International
segment includes retail operations in Canada; Puerto Rico; the
United States Virgin Islands; Japan; the South American Region,
which includes Ecuador, and the Central American Region, which
includes Costa Rica, Guatemala, El Salvador, the Dominican
Republic, Honduras, Nicaragua, Panama and Trinidad and Tobago.

                        *     *     *

In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the US and Canadian Retail sector, the rating
agency confirmed its Ba3 Corporate Family Rating for Payless
ShoeSource, Inc., and upgraded its B2 rating on the company's
US$$200 million 8.25% senior subordinated notes to B1.

Moody's also assigned an LGD4 rating to notes, suggesting
noteholders will experience a 64% loss in the event of a
default.




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


CMS ENERGY: Names 11 Incumbents Seeking Re-Election to Board
------------------------------------------------------------
CMS Energy reported that eleven incumbents are seeking
reelection to the company's Board of Directors.

The incumbents seeking reelection are:

   -- Kenneth Whipple, chairman of CMS Energy and its principal
      subsidiary, Consumers Energy, and

   -- David Joos, president and chief executive officer of CMS
      Energy and chief executive officer of Consumers Energy,

and the independent directors:

   -- Merribel S. Ayres,
   -- Jon E. Barfield,
   -- Richard M. Gabrys,
   -- Philip R. Lochner Jr.,
   -- Michael T. Monahan,
   -- Joseph F. Paquette Jr.,
   -- Percy A. Pierre,
   -- Kenneth L. Way, and
   -- John B. Yasinsky

Shareholders will vote on the candidates for the Board of
Directors at CMS Energy's annual meeting on May 18, 2007.

Shareholders also will be asked to vote on a proposal ratifying
PricewaterhouseCoopers, L.L.P., as the company's independent
registered public accounting firm for 2007.

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 AG: Meets with Chrysler Bidders Except Kerkorian
----------------------------------------------------------------
DaimlerChrysler AG executive Ruediger Grube, a management-board
member and head of strategy, is presently negotiating with all
Chrysler bidders, with the exception of billionaire Kirk
Kerkorian's Tracinda Corp., the Wall Street Journal states.

According to the report, the company had scheduled meetings with
Cerberus Capital Management LP; joint bidders Blackstone Group
and Centerbridge Capital Partners LP; and the tandem of Magna
International Inc. and Onex Corp., but left Tracinda Corp. in
the lurch.

The TCR-Europe reported on April 11 that DaimlerChrysler had
received a new offer of up to US$4.5 billion in cash from
Tracinda Corp., an investment firm owned by billionaire Kirk
Kerkorian.

However, the automaker is skeptical about the competitiveness of
Tracinda's bid, considering that it entails substantial
conditions, as it entertains offers from three other groups, WSJ
observes.

Mr. Kerkorian's tender depends on whether Chrysler enters into a
"satisfactory" labor contract with the UAW and if Daimler agrees
to share part of the troubled unit's unfunded pension
liabilities and retiree heath-care costs amounting to US$15
billion.

On the other hand, Magna International Inc. and its potential
partner, Canadian investment firm Onex Corp., plan to each
acquire equal minority stakes in Chrysler and let
DaimlerChrysler keep a small equity in the ailing unit, WSJ
relates, quoting sources familiar with the matter.

Magna also intends to create a separate company for Chrysler and
outsource engineering while keeping the products' design and
assembly in-house, WSJ says.

Concurrently, WSJ reports German bank WestLB AG has acquired a
14 percent stake in DaimlerChrysler, saying that the move is
meant to help shareholders sell their shares, avoiding a broader
selloff, with plans to reduce its share back to its original 3
percent level.

                      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: Dresdner Urges Investors to Buy Bonds
-------------------------------------------------------------
Global investment banking Dresdner Kleinwort has recommended
investors to buy Venezuelan state-run oil firm Petroleos de
Venezuela SA's bonds, Bloomberg reports.

Dresdner Kleinwort said in a note to clients that it recommends
them to trim holdings of Venezuelan government bonds and
purchase the PDV-bono, composed of US$7.5 billion of these
bonds:

          -- 2017,
          -- 2027, and
          -- 2037.

According to Bloomberg, the bonds rose after Dresdner Kleinwort
disclosed its recommendation.

"The current Petroleos spread over Venezuela's government curve
is driven by supply from local investors.  We expect this supply
to be overpowered by demand from benchmarked international
investors driving the spread difference tighter," Dresdner
Kleinwort emerging-market analysts Dmitry Sentchoukov and Arnab
Das said in the note.

According to the note, the analysts predict that the bonds,
offered exclusively to Venezuelan local investors in April, will
be included in JPMorgan Chase & Co.'s Emerging Market Bond
Global Index, a benchmark for bondholders.  Its addition to the
index could heighten demand, particularly from funds that
imitate the JPMorgan Chase barometer.

The bonds -- registered under Regulation S in Luxembourg -- can
be purchased by US investors beginning in the middle of May,
Bloomberg 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.


PETROLEOS DE VENEZUELA: Spots Overlapped Orders by Investor
-----------------------------------------------------------
Venezuelan state oil company Petroleos de Venezuela SA has found
cases of overlapped orders from a group of investors keen on
purchasing the firm's bonds, El Universal reports.

El Universal relates that Petroleos de Venezuela issued foreign-
currency denominated bonds totaling US$7.5 billion that the
public can pay in Venezuelan bolivars.

As reported in the Troubled Company Reporter-Latin America on
April 4, 2007, Petroleos de Venezuela President Rafael Ramirez,
who is also the country's oil and energy minister, said that the
firm's US$5-billion bond issue was oversubscribed "threefold,"
with orders for the bond totaling 500,000 from the March 26 to
March 29 book-building period.

El Universal emphasizes the Petroleos de Venezuela found out
that the purchase orders are redundant, as the same person
appears as buyer in multiple financial agencies.

Brokerage firms told El Universal that the purchase orders
account for over U$100 million.

El Universal underscores that Petroleos de Venezuela, in
accordance with the directions included in the takeover bid,
will cancel the order and won't allot bonds to the parties
involved.

Most clients whose orders were considered unacceptable and
invalid claimed that they made the move only with one agency.  
However, a group of financial agencies seemingly used their ID
numbers "to make assumed orders," El Universal states, citing
brokerage firms.

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

                        *     *     *

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


PETROLEOS DE VENEZUELA: Assures Campo La Paz Grease Production
--------------------------------------------------------------
Petroleos de Venezuela SA, through the Special Recovery Plan for
the Maintenance of the Facilities of the West (PREMIO),
guarantees the production of crude oil and gas at Campo La Paz
by having a multi-functional tank available.

The storage facility known as "tanque numero 4" is located in
Campo La Paz of Pacon section, belonging to "B" Flow Station,
and has the capability of supporting the operation processes for
dehydration, storage of crude oil and of water, performed by the
oil industry in La Paz and La Concepcion.

Formerly it was only a wash tank that was out of service.  But
now, after an investment of 3 billion bolivars, it has been
fully recovered and converted into a multi-purpose facility.

With the conversion of tank number 4 into a multifunctional
tank, there has been achieved the flexibility in the oil storage
system that is necessary in order to meet the annual maintenance
program, by increasing the capacity available at this station's
oil storage system, thus warranting the reserve capacity and the
operating continuity of the process.

The refurbishing and modification works contemplated the
connection of the tank's water outlet to the well water
injection system, the manufacture and installation of two
degasifier containers, manufacture and installation of
approximately 100 meters of 16" pipeline, and the acquisition
and installation of a block valve;  in addition to the
restoration of the internal and external portion of the walls
and the ceiling of the tank, the fire protection system and
general civil works.

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: Hugo Chavez Slams President Bush's Ethanol Project
---------------------------------------------------------------
Venezuela's Hugo Chavez has rejected President George W. Bush's
plan to replace fuel ethanol with gasoline, the Hong Kong
Standard reports.

Sources say that it had joined a growing debate on the continent
over use of the biofuel.  Cuban leader Fidel Castro tagged the
Bush ethanol project a "genocidal" plan that would result to
world hunger, although the Brazilian government has sided with
the Bush administration to help advance the global use of
ethanol.

According to the report, the United States' ethanol production
came from corn and Brazil makes the fuel from sugar cane.  Both
countries are promoting their products in developing countries.

Mr. Chavez expressed disagreement on ethanol substitution with
gasoline, calling it "madness."  He insisted that planting corn
and sugar to produce fuel would waste land and water resources
that could be used to grow food, the Hong Kong Standard relates.

The newspaper says that in recent months, huge investors showed
interests for renewable alternatives to gasoline in which Latin
American leaders, including Lula and Bolivia's President Evo
Morales, would meet next week in Venezuela to discuss energy
integration plans, in which Venezuela is the big promoter.

Mr. Chavez suggested other countries to shun ethanol and instead
rely on Venezuela's oil and gas reserves.

                        *     *     *

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.


                         ***********


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
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
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Information contained herein is obtained from sources believed
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The TCR Latin America subscription rate is US$625 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are US$25 each.  For
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           * * * End of Transmission * * *