TCRLA_Public/070507.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

             Monday, May 7, 2007, Vol. 8, Issue 89

                          Headlines

A R G E N T I N A

AES CORP: Unit Faces Nasdaq Delisting Due to Late 10-K Filing
ASOCIACION CLUB: Claims Verification Deadline Is Today
BANCO BANEX: Moody's Lifts Fin'l Strength Rating to D- from E+
BANCO DE LA CIUDAD: Moody's Ups Fin'l Strength Rating to D
BANCO DEL TUCUMAN: Moody's Lifts Fin'l Strength Rating to D

BANCO MACRO: Moody's Ups Fin'l Strength Rating to D from E+
BANCO MACRO: Ups Medium-Term Note Funding Program to US$700 Mil.
BANCO SANTANDER: Launches Mobile Banking Service with Movistar
BANCO SUPERVIELLE: Moody's Ups Fin'l Strength Rating to D-
CLUB ATLETICO: Trustee To File Individual Reports on July 2

CMS ENERGY: Will Close Brazilian Distribution Business Sale
CORSINO IMPRESORES: Trustee To File Individual Reports Tomorrow
EDENOR: Partially Completes Public Share Offer
MBA BANCO: Moody's Lifts Fin'l Strength Rating to D- from E+
NUEVO BANCO: Moody's Lifts Fin'l Strength Rating to D from E+

NUEVO BANCO: Moody's Ups Fin'l Strength Rating to D from E+
POWER COLD: Trustee To File General Report in Court Tomorrow
ZONDA COLOR: Trustee To File Individual Reports Tomorrow

B A H A M A S

ISLE OF CAPRI: Will Continue Lucaya Resort Casino Operations
PETROLEOS DE VENEZUELA: May Sell Bahamian Storage & Sea Terminal
PETROLEOS DE VENEZUELA: Terminates Borco Storage Pact

B O L I V I A

COEUR D'ALENE: Inks Merger Agreement with Bolnisi & Palmarejo

B R A Z I L

ACE SEGURADORA: Moody's Rates Global Local Currency at Ba3
ALERIS INTERNATIONAL: Completes EKCO Products Acquisition
BANCO NACIONAL: Grants BRL34.7-Million Financing to Natura
BRASKEM SA: Earns BRL107 Million in Quarter Ended March 31
DURA AUTOMOTIVE: Evaluates Strategic Options for Atwood Group

GERDAU AMERISTEEL: First Quarter Net Income Up to US$133.5 Mil.
GERDAU SA: Mulls Expansion in China
GERDAU SA: Net Profit Increases to BRL869 Mil. in First Quarter
HUDSON HIGHLAND: Robert W. Baird Keeps Outperform Rating on Firm
MRS LOGISTICA: Earns BRL121 Million in First Quarter 2007

NRG ENERGY: Moody's Affirms Low B Ratings with Negative Outlook
PETROLEO BRASILEIRO: Petroleos de Venezuela Ends Storage Pact
PETROLEO BRASILEIRO: Workers Will Hold Strikes Against Firm
TELEMIG CELULAR: Reports BRL42.6 Mil. First Quarter Net Profits
TRW AUTOMOTIVE: Credit Suisse Keeps Outperform Rating on Firm

C A Y M A N   I S L A N D S

ACORN FUND: Will Hold Final Shareholders Meeting on June 15
CITIGROUP SERVICES: Sets Final Shareholders Meeting for July 12
ICGE SAILS: Will Hold Final Shareholders Meeting on July 12

C H I L E

BOSTON SCIENTIFIC: COO Says Company Mulls Sale of Noncore Assets
BOSTON SCIENTIFIC: Names Sam Leno as Chief Financial Officer
SCOTIABANK SUD: Moody's Ups Fin'l Strength Rating to D+ from D

C O L O M B I A

BRIGHTPOINT: Earns US$35.6 Million in Year Ended Dec. 31, 2006

* COLOMBIA: U.S. President Urges Congress to Ratify FTA

D O M I N I C A N   R E P U B L I C

BANCO INTERCONTINENTAL: Officials Allegedly Erase Loan Figures

E C U A D O R

PETROECUADOR: Unit's Output Drops Due to Installation Attacks
PETROECUADOR: Unit Starts Production in First Block 15 Well

M E X I C O

ALL AMERICAN: Bankruptcy Court Approves First Day Motions
DELTA AIR: Prudential Financial Puts Underweight Rating on Firm
EMPRESAS ICA: Net Profits Decrease to MXN24MM in First Quarter
EPICOR SOFTWARE: Prices US$200 Mil. of 2.375% Sr. Notes Offering
FORD MOTOR: Navistar Files US$2 Billion Counter Claim

FORD MOTOR: April U.S. Sales Decreased 13%, to 228,623
GENERAL MOTORS: April Sales Down 2.2%; Rental Sales Down 36%
GENERAL MOTORS: Earns US$62 Million in Quarter Ended March 31
GRUPO CASA: Reports MXN165.1 Mil. Net Income in 2007 First Qtr.
GRUPO TMM: Incurs MXN5.1 Million Net Loss in First Quarter 2007

HIPOTECARIA CREDITO: Securitizes MXN1 Bil. Non-Performing Loans
LIBBEY INC: Board Declares US$0.025 Per Share Quarterly Dividend
NAVISTAR INT'L: Files US$2 Billion Counter Claim Against Ford
PORTRAIT CORP: Inks Pact Selling Assets to CPI for US$100MM Cash
VISTEON CORP: Posts US$153 Mil. Net Loss in Qtr. Ended March 31

P E R U

NUTRO PRODUCTS: Moody's Reviews Ratings for Possible Downgrade

P U E R T O   R I C O

INTERLINE BRANDS: Reports US$9.4 Mil. Net Income in First Qtr.

T R I N I D A D   &   T O B A G O

MILLIPORE CORP: UBS Maintains Buy Rating on Firm's Shares

U R U G U A Y

BANCO DE LA REPUBLICA: Moody's Ups Fin'l Strength Rating to D-
BANCO SANTANDER: Moody's Ups Financial Strength Rating to D
BANCO SURINVEST: Moody's Ups Fin'l Strength Rating to E+ from E
BANKBOSTON URUGUAY: Moody's Ups Financial Strength Rating to D

V E N E Z U E L A

HARVEST NATURAL: Incurs US$6.5-Mil. Loss in First Quarter 2007
PETROLEOS DE VENEZUELA: Bonds Affected by Nationalization
PETROLEOS DE VENEZUELA: Will Start Extracting Crude from Orinoco
PETROLEOS DE VENEZUELA: Won't Take on Orinoco's US$4-Bil. Debt

* VENEZUELA: Creates VEB1.6-Bil. Fund for Cantv Nationalization
* VENEZUELA: President Warns of Nationalizing Banking Sector
* VENEZUELA: Won't Pay Private Firms for Takeover

* BOOK REVIEW: American Economic History


                         - - - - -



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


AES CORP: Unit Faces Nasdaq Delisting Due to Late 10-K Filing
-------------------------------------------------------------
The AES Trust VII, a subsidiary of the AES Corporation, received
a written notification from The Nasdaq Stock Market on
May 1, 2007, stating that the Trust VII's Trust Convertible
Preferred Securities (OTCCB symbol: AESRO) will be delisted from
the OTC Bulletin Board effective May 3, 2007, due to non-
compliance with NASD Rule 6530 as a result of the company's
failure to timely file its annual report on Form 10-K for the
year ended Dec. 31, 2006.  The decision to delist the
Convertible Preferred Securities was made following a telephonic
hearing by the company before the Hearings Department of the
Nasdaq Stock Market on April 27, 2007.   The company has not
determined whether it will cause a Form 211 to be filed to list
the Convertible Preferred Securities on the OTC Bulletin Board
after it has filed its annual report on Form 10-K with the U.S.
Securities Exchange Commission.

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

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

                        *     *     *

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


ASOCIACION CLUB: Claims Verification Deadline Is Today
------------------------------------------------------
The verification of creditors' proofs of claims against
Asociacion Club Atletico Macachin, which is undergoing
bankruptcy proceeding, is until May 7, 2007.

The court-appointed trustee will present the validated claims in
court as individual reports on June 20, 2007.  The National
Commercial Court of First Instance in Santa Rosa, La Pampa, will
determine if the verified claims are admissible, taking into
account the trustee's opinion, and the objections and challenges
that will be raised by Asociacion Club Atletico and its
creditors.

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

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

Infobae did not state the name of the trustee as well as the
general report submission date.

The debtor can be reached at:

          Asociacion Club Atletico Macachin
          La Plata 300, Macachin
          La Pampa, Argentina


BANCO BANEX: Moody's Lifts Fin'l Strength Rating to D- from E+
--------------------------------------------------------------
Moody's Investors Service has confirmed that it raised its bank
financial strength rating on Banco Banex S.A. to D- from E+, in
connection with the rating agency's implementation of its
refined joint default analysis and updated BFSR methodologies
for banks in Argentina.

Banco Banex's Local Currency Deposit Rating is upgraded to Ba2
from B1.  Its Foreign Currency Deposit Rating is affirmed at
Caa1, with positive outlook.  The company's long term Argentine
National Scale Rating for Local Currency Deposits is raised to
Aa2.ar from Aa3.ar and its long term Foreign Currency deposit
rating in National Scale is affirmed at Ba1.ar.

The BFSRs of 18 Argentine banks were upgraded, by one or two
notches, as a result of their improving financial fundamentals
and evolving franchises, combined with an improving regulatory
environment.  Many of the banks that were upgraded had had
positive outlooks on their BFSRs.

Moody's has assigned support levels to banks in Argentina using
its high country support guideline.  This guideline takes into
consideration the recent evidence of support for banks, in
addition to size, strength and degree of fragmentation of the
Argentinean banking system.  The implementation of the JDA
methodology also led to the upgrade of the local currency
deposit ratings of 15 banks by two notches, on average.

Most of the national scale ratings, which are derived from the
global local currency deposit ratings, were also upgraded as a
result of the rise in deposit ratings.

BFSRs evaluate the stand-alone or intrinsic financial strength
of banks without reference to external support factors.  BFSRs
are the starting point of Moody's bank credit analysis, and are
an important determinant of Moody's bank deposit and debt
ratings.

Moody's then uses its JDA methodology to incorporate the
potential for external support into a bank's local currency
deposit rating.  The potential for external support can reduce
the riskiness of a bank's deposit and debt obligations; however,
such support is often uncertain.

Moody's uses conservative support assumptions and a limited
number of support levels to ensure that sufficient weight is
given to a bank's intrinsic financial strength in its bank
deposit and debt ratings.

Moody's uses deposit ratings to determine bank debt ratings
based on its notching guidelines for bank securities.  Ratings
for foreign currency obligations are determined after
considering Moody's country ceilings for foreign currency
ratings.

Banco Banex is a subsidiary of Grupo Financiero Banex -- the
fifth largest financial group in Costa Rica.  Panama's Grupo
Banistmo currently controls Banex.


BANCO DE LA CIUDAD: Moody's Ups Fin'l Strength Rating to D
----------------------------------------------------------
Moody's Investors Service has confirmed that it raised its bank
financial strength rating on Banco de la Ciudad de Buenos Aires
to D from E+, in connection with the rating agency's
implementation of its refined joint default analysis and updated
BFSR methodologies for banks in Argentina.

Banco de la Ciudad's Local Currency Deposit Rating is affirmed
at Ba1.  Its Foreign Currency Deposit Rating is affirmed at
Caa1, with positive outlook.  The company's long term Argentine
National Scale Rating for Local Currency Deposits is downgraded
to Aa1.ar from Aaa.ar and its long term Foreign Currency deposit
rating in National Scale is affirmed at Ba1.ar.

The BFSRs of 18 Argentine banks were upgraded, by one or two
notches, as a result of their improving financial fundamentals
and evolving franchises, combined with an improving regulatory
environment.  Many of the banks that were upgraded had had
positive outlooks on their BFSRs.

Moody's has assigned support levels to banks in Argentina using
its high country support guideline.  This guideline takes into
consideration the recent evidence of support for banks, in
addition to size, strength and degree of fragmentation of the
Argentinean banking system.  The implementation of the JDA
methodology also led to the upgrade of the local currency
deposit ratings of 15 banks by two notches, on average.

Most of the national scale ratings, which are derived from the
global local currency deposit ratings, were also upgraded as a
result of the rise in deposit ratings.

BFSRs evaluate the stand-alone or intrinsic financial strength
of banks without reference to external support factors.  BFSRs
are the starting point of Moody's bank credit analysis, and are
an important determinant of Moody's bank deposit and debt
ratings.

Moody's then uses its JDA methodology to incorporate the
potential for external support into a bank's local currency
deposit rating.  The potential for external support can reduce
the riskiness of a bank's deposit and debt obligations; however,
such support is often uncertain.

Moody's uses conservative support assumptions and a limited
number of support levels to ensure that sufficient weight is
given to a bank's intrinsic financial strength in its bank
deposit and debt ratings.

Moody's uses deposit ratings to determine bank debt ratings
based on its notching guidelines for bank securities.  Ratings
for foreign currency obligations are determined after
considering Moody's country ceilings for foreign currency
ratings.


BANCO DEL TUCUMAN: Moody's Lifts Fin'l Strength Rating to D
-----------------------------------------------------------
Moody's Investors Service has confirmed that it raised its bank
financial strength rating on Banco del Tucuman S.A. to D from
E+, in connection with the rating agency's implementation of its
refined joint default analysis and updated BFSR methodologies
for banks in Argentina.

Banco del Tucuman's Local Currency Deposit Rating is upgraded to
Ba1 from Ba3, in line with the rating of its parent, Banco
Macro. The company's Foreign Currency Deposit Rating is affirmed
at Caa1, with positive outlook.  The company's long term
Argentine National Scale Rating for Local Currency Deposits is
raised to Aa1.ar from Aa2.ar. and its long term Foreign Currency
deposit rating in National Scale is affirmed at Ba1.ar.

The BFSRs of 18 Argentine banks were upgraded, by one or two
notches, as a result of their improving financial fundamentals
and evolving franchises, combined with an improving regulatory
environment.  Many of the banks that were upgraded had had
positive outlooks on their BFSRs.

Moody's has assigned support levels to banks in Argentina using
its high country support guideline.  This guideline takes into
consideration the recent evidence of support for banks, in
addition to size, strength and degree of fragmentation of the
Argentinean banking system.  The implementation of the JDA
methodology also led to the upgrade of the local currency
deposit ratings of 15 banks by two notches, on average.

Most of the national scale ratings, which are derived from the
global local currency deposit ratings, were also upgraded as a
result of the rise in deposit ratings.

BFSRs evaluate the stand-alone or intrinsic financial strength
of banks without reference to external support factors.  BFSRs
are the starting point of Moody's bank credit analysis, and are
an important determinant of Moody's bank deposit and debt
ratings.

Moody's then uses its JDA methodology to incorporate the
potential for external support into a bank's local currency
deposit rating.  The potential for external support can reduce
the riskiness of a bank's deposit and debt obligations; however,
such support is often uncertain.

Moody's uses conservative support assumptions and a limited
number of support levels to ensure that sufficient weight is
given to a bank's intrinsic financial strength in its bank
deposit and debt ratings.

Moody's uses deposit ratings to determine bank debt ratings
based on its notching guidelines for bank securities.  Ratings
for foreign currency obligations are determined after
considering Moody's country ceilings for foreign currency
ratings.

Banco del Tucuman S.A. is based in San Miguel del Tucuman,
Argentina and had 25 branches.


BANCO MACRO: Moody's Ups Fin'l Strength Rating to D from E+
-----------------------------------------------------------
Moody's Investors Service has confirmed that it raised its bank
financial strength rating on Banco Macro S.A. to D from E+, in
connection with the rating agency's implementation of its
refined joint default analysis and updated BFSR methodologies
for banks in Argentina.

Banco Macro's Local Currency Deposit Rating is upgraded to Ba1
from Ba3.  Its Foreign Currency Deposit Rating is affirmed at
Caa1 with positive outlook.  The company's long term Argentine
National Scale Rating for Local Currency Deposits is raised to
Aa1.ar from Aa2.ar and its long term Foreign Currency deposit
rating in National Scale is affirmed at Ba1.ar.

Moody's also affirmed the company's Foreign Currency Senior Debt
Rating at B2, and upgraded the Junior Capital Debt Rating to B2
from B3.  The company's National Scale Rating for Foreign
Currency Junior Capital Debt is raised to Aa3.ar from A3.ar and
its National Scale Rating for Foreign Currency Senior Debt is
affirmed at Aa3.ar.  The outlook on the senior and junior
capital debt is positive.

The BFSRs of 18 Argentine banks were upgraded, by one or two
notches, as a result of their improving financial fundamentals
and evolving franchises, combined with an improving regulatory
environment.  Many of the banks that were upgraded had had
positive outlooks on their BFSRs.

Moody's has assigned support levels to banks in Argentina using
its high country support guideline.  This guideline takes into
consideration the recent evidence of support for banks, in
addition to size, strength and degree of fragmentation of the
Argentinean banking system.  The implementation of the JDA
methodology also led to the upgrade of the local currency
deposit ratings of 15 banks by two notches, on average.

The most notable debt upgrades, compared to pre-JDA levels, were
for Banco Macro S.A.'s junior capital securities, which was
upgraded to B2 and for Banco Patagonia's foreign currency
subordinated debt, which rating was lifted by two notches to B2,
from Caa1, Both actions reflect the upgrade of their respective
BFSRs and resultant lift in their deposit ratings.

Most of the national scale ratings, which are derived from the
global local currency deposit ratings, were also upgraded as a
result of the rise in deposit ratings.

BFSRs evaluate the stand-alone or intrinsic financial strength
of banks without reference to external support factors.  BFSRs
are the starting point of Moody's bank credit analysis, and are
an important determinant of Moody's bank deposit and debt
ratings.

Moody's then uses its JDA methodology to incorporate the
potential for external support into a bank's local currency
deposit rating.  The potential for external support can reduce
the riskiness of a bank's deposit and debt obligations; however,
such support is often uncertain.

Moody's uses conservative support assumptions and a limited
number of support levels to ensure that sufficient weight is
given to a bank's intrinsic financial strength in its bank
deposit and debt ratings.

Moody's uses deposit ratings to determine bank debt ratings
based on its notching guidelines for bank securities.  Ratings
for foreign currency obligations are determined after
considering Moody's country ceilings for foreign currency
ratings.

Headquartered in Buenos Aires, Argentina, Banco Macro SA fka
Banco Macro Bansud SA offers traditional commercial banking
products and services to small and medium-sized companies,
companies operating in regional economies, and to low and
middle-income individuals.  It offers savings and checking
accounts, credit and debit cards, consumer finance loans, other
credit-related products and transactional services to its
individual customers, and small and medium-sized businesses
through its branch network.  The bank also offers Plan Sueldo
payroll services, lending, corporate credit cards, mortgage
finance, transaction processing and foreign exchange.  The
bank's subsidiaries are Nuevo Banco Suquia SA, Banco del Tucuman
SA, Nuevo Banco Bisel SA, Sud Bank & Trust Company Limited,
Macro Securities SA Sociedad de Bolsa, Sud Inversiones &
Analisis SA and Macro Fondos SA, Macro Valores SA and Red Innova
Administradora de Fondos de Inversion SA.


BANCO MACRO: Ups Medium-Term Note Funding Program to US$700 Mil.
----------------------------------------------------------------
Banco Macro SA said in a filing with the Argentine stock
exchange that it has increased its "medium-term note-financing
program" to US$700 million from US$400 million.

Business News Americas reports that Banco Macro sold in December
2006 and January 2007 a combined US$300 million of 10-year bonds
and 30-year non-cumulative junior subordinated securities,
respectively, which were part of the original US$400-million
program.

Banco Macro will seek on June 4 shareholders' approval on the
increase in its note-financing program, BNamericas states.

Headquartered in Buenos Aires, Argentina, Banco Macro SA fka
Banco Macro Bansud SA offers traditional commercial banking
products and services to small and medium-sized companies,
companies operating in regional economies, and to low and
middle-income individuals.  It offers savings and checking
accounts, credit and debit cards, consumer finance loans, other
credit-related products and transactional services to its
individual customers, and small and medium-sized businesses
through its branch network.  The bank also offers Plan Sueldo
payroll services, lending, corporate credit cards, mortgage
finance, transaction processing and foreign exchange.  The
bank's subsidiaries are Nuevo Banco Suquia SA, Banco del Tucuman
SA, Nuevo Banco Bisel SA, Sud Bank & Trust Company Limited,
Macro Securities SA Sociedad de Bolsa, Sud Inversiones &
Analisis SA and Macro Fondos SA, Macro Valores SA and Red Innova
Administradora de Fondos de Inversion SA.


BANCO SANTANDER: Launches Mobile Banking Service with Movistar
--------------------------------------------------------------
Banco Santander Rio has launched a mobile banking service with
Telefonica mobile unit Movistar Argentina through which
customers can make payments, requests for information and other
banking oeprations, the latter said in a statement.

Business News Americas relates that customers can send a SMS
message to 22322 using a keyword like "saldo" (bank balance) and
receive information to their cell phone regarding the balance,
deadlines for payments and order payments.

Clients can also get information on credit card purchases and
automatic debits to the users' account using the new service,
BNamericas states.

Banco Santander Rio S.A. is headquartered in Buenos Aires,
Argentina.  The bank had ARS$16.2 billion (US$5.3 billion) in
total assets and ARS$12.6 billion (US$4.1 billion) in deposits
as of December 2006.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
April 19, 2007, Moody's Investors Service assigned a Ba2 local
currency debt rating to Banco Santander Rio S.A.'s ARS$450
million notes that are due in 2010 issued under the program of
US$250 million.  Moody's also assigned Aaa.ar national scale
local currency debt rating to the notes.  These ratings were
assigned to Banco Santander's ARS$450 million Senior Unsecured
Notes:

   -- Long-term local currency debt rating: Ba2, stable outlook
   -- National scale local currency debt rating: Aaa.ar


BANCO SUPERVIELLE: Moody's Ups Fin'l Strength Rating to D-
----------------------------------------------------------
Moody's Investors Service has confirmed that it raised its bank
financial strength rating on Banco Supervielle S.A. to D- from
E+, in connection with the rating agency's implementation of its
refined joint default analysis and updated BFSR methodologies
for banks in Argentina.

Banco Supervielle's Local Currency Deposit Rating is upgraded to
Ba2 from B1.  Its Foreign Currency Deposit Rating is affirmed at
Caa1, with positive outlook.  The company's long term Argentine
National Scale Rating for Local Currency Deposits is raised to
Aa2.ar from Aa3.ar and its long term Foreign Currency deposit
rating in National Scale is affirmed at Ba1.ar.

The BFSRs of 18 Argentine banks were upgraded, by one or two
notches, as a result of their improving financial fundamentals
and evolving franchises, combined with an improving regulatory
environment.  Many of the banks that were upgraded had had
positive outlooks on their BFSRs.

Moody's has assigned support levels to banks in Argentina using
its high country support guideline.  This guideline takes into
consideration the recent evidence of support for banks, in
addition to size, strength and degree of fragmentation of the
Argentinean banking system.  The implementation of the JDA
methodology also led to the upgrade of the local currency
deposit ratings of 15 banks by two notches, on average.

Most of the national scale ratings, which are derived from the
global local currency deposit ratings, were also upgraded as a
result of the rise in deposit ratings.

BFSRs evaluate the stand-alone or intrinsic financial strength
of banks without reference to external support factors.  BFSRs
are the starting point of Moody's bank credit analysis, and are
an important determinant of Moody's bank deposit and debt
ratings.

Moody's then uses its JDA methodology to incorporate the
potential for external support into a bank's local currency
deposit rating.  The potential for external support can reduce
the riskiness of a bank's deposit and debt obligations; however,
such support is often uncertain.

Moody's uses conservative support assumptions and a limited
number of support levels to ensure that sufficient weight is
given to a bank's intrinsic financial strength in its bank
deposit and debt ratings.

Moody's uses deposit ratings to determine bank debt ratings
based on its notching guidelines for bank securities.  Ratings
for foreign currency obligations are determined after
considering Moody's country ceilings for foreign currency
ratings.

Banco Supervielle -- http://www.supervielle.com.ar/-- is owned
by Banco Banex S.A., and together they form the Supervielle
Group, the sixth-largest private banking group in Argentina.
The bank operates 122 branches and payment centers, which are
mainly concentrated in the provinces of Buenos Aires, Cordoba,
Mendoza, San Luis, and Santa Fe.  Banco Supervielle focuses on
individuals and the middle-market clients and corporate segments
in Argentina, including American and European corporations in
the country.  It specializes in consumer loans, credit cards,
payroll payments, factoring, trade, leasing, and financial
trustees, and it holds a diversified portfolio in retail, auto
parts, civil construction, agrochemical, manufacturing, and
other industries.  Joining IFC's Global Trade Finance Program
will help Banco Supervielle expand, helping serve the trade
finance needs of the country's small and medium enterprises.  It
will also help the bank to consolidate its business in other
segments.


CLUB ATLETICO: Trustee To File Individual Reports on July 2
-----------------------------------------------------------
Estudio Bruzzo, Plotno, Turek y Asoc., the court-appointed
trustee for Club Atletico San Miguel Asoc. Civil's bankruptcy
proceeding, will present creditors' validated claims as
individual reports in the National Commercial Court of First
Instance in San Martin, Buenos Aires on July 2, 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 Club Atletico and its creditors.

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

Estudio Bruzzo verified creditors' proofs of claim until
May 2, 2007.

Estudio Bruzzo will also submit to court a general report
containing an audit of Club Atletico's accounting and banking
records.

Infobae did not state the general report submission date.

The debtor can be reached at:

          Albo Asip SA
          Sarandi 461
          Buenos Aires, Argentina

The trustee can be reached at:

          Estudio Bruzzo, Plotno, Turek y Asoc.
          Ayacucho 2121, San Martin
          Buenos Aires, Argentina


CMS ENERGY: Will Close Brazilian Distribution Business Sale
-----------------------------------------------------------
CMS Energy Chief Financial Officer Tom Webb said in a Web cast
that the company plans to conclude the sale of its Brazilian
distribution business in the coming months.

Business News Americas relates that the sale is part of CMS
Energy's restructuring process, which also includes the sale of
international assets.  CMS Energy closed a US$180-million deal
in March on the sale of Argentine assets to US power firm Lucid
Energy.  The company then agreed in April to sell its Brazilian
power holding company CMS Energy Brasil to utility CPFL Energia
for US$211 million.  This month, CMS Energy completed the sale
of its 88% stake in Venezuelan utility Seneca to Venezuelan
state-run oil firm Petroleos de Venezuela SA for US$106 million.

CMS Energy is also selling its Argentine-Chile GasAtacama unit
and Jamaican assets in an auction process, Mr. Webb told
BNamericas.

Michigan-based CMS Energy Corp. is an electric and natural gas
utility, natural gas pipeline systems, and independent power
generation operator.  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.


CORSINO IMPRESORES: Trustee To File Individual Reports Tomorrow
---------------------------------------------------------------
Adriana Mabel Ataguile, the court-appointed trustee for Corsino
Impresores SRL's reorganization proceeding, will present
creditors' validated claims as individual reports in the
National Commercial Court of First Instance in Mendoza on
May 8, 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 Corsino Impresores and its creditors.

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

As reported in the Troubled Company Reporter-Latin America on
Nov. 21, 2006, Ms. Ataguile verified creditors' proofs of claim
until March 13, 2007.

Ms. Ataguile will also submit to court a general report
containing an audit of Corsino Impresores' accounting and
banking records on Sept. 4, 2007.

The informative assembly will be held on Dec. 12, 2007.
Creditors will vote to ratify the completed settlement plan
during the assembly.

The trustee can be reached at:

          Adriana Mabel Ataguile
          San Martin 1425, Ciudad de Mendoza
          Mendoza, Argentina


EDENOR: Partially Completes Public Share Offer
----------------------------------------------
Argentine power distributor Edenor said in a filing with the
Buenos Aires stock exchange that it has partially completed its
public share offer with the issue of 74.8 million new shares.

Business News Americas relates that Edenor's shareholders
previously authorized plans to raise the firm's capital by 10%,
or 83.2 million class B shares, through the offer.  Citigroup
and JP Morgan offered the shares on the New York Stock Exchange
as ADS representing 20 shares each.

Meanwhile, Citigroup and JP Morgan "exercised their greenshoe
option" to issue on May 4 about 2.89 million ADS held by New
Equity Ventures and the EDF International unit of France's state
power firm EDF, according to BNamericas.  NEV and EDF offered
228 million class B shares.  The total amount of shares sold
will be disclosed 30 days from April 25.

New Equity indirectly transferred some 38.2 million class B
Edenor shares to Argentine holding company Easa that were
converted to class A shares, allowing Easa to keep a 51% stake
in Edenor.  About 81.2 million class C shares were also offered
through the worker stock participation program, which were then
converted to class B shares.  The remaining 1.95 million class C
shares now make up 0.2% of Edenor's social capital, BNamericas
states.

EDENOR is Argentina's largest electricity distribution company
in terms of customers served (2.45 million as of December 2006)
and power sales (15,677 gigawatt-hours in 2005 and 12,395
gigawatt-hours in the first nine months of 2006).  EDENOR has a
95-year concession contract (which started in 1992) to
distribute electricity in a densely populated area of about
seven million inhabitants in the northwest of greater Buenos
Aires and the north of the city of Buenos Aires.  EDENOR is 65%
directly and indirectly owned by the Dolphin Group.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 22, 2007, Standard & Poor's Ratings Services raised its
corporate credit and senior unsecured debt ratings on
Argentina's largest electric distribution company Empresa
Distribuidora y Comercializadora Norte S.A. aka EDENOR by one
notch to 'B' from 'B-'.  The ratings were removed from
CreditWatch, where they were placed with positive implications
on Jan. 11, 2007.  S&P says the outlook is stable.


MBA BANCO: Moody's Lifts Fin'l Strength Rating to D- from E+
------------------------------------------------------------
Moody's Investors Service has confirmed that it raised its bank
financial strength rating on MBA Banco de Inversiones S.A. to D-
from E+, in connection with the rating agency's implementation
of its refined joint default analysis and updated BFSR
methodologies for banks in Argentina.

MBA Banco's Local Currency Deposit Rating is upgraded to Ba2
from B2.  Its Foreign Currency Deposit Rating is affirmed at
Caa1, with positive outlook.  The company's long term Argentine
National Scale Rating for Local Currency Deposits is raised to
Aa2.ar from A1.ar and its long term Foreign Currency deposit
rating in National Scale is affirmed at Ba1.ar.

The BFSRs of 18 Argentine banks were upgraded, by one or two
notches, as a result of their improving financial fundamentals
and evolving franchises, combined with an improving regulatory
environment.  Many of the banks that were upgraded had had
positive outlooks on their BFSRs.

Moody's has assigned support levels to banks in Argentina using
its high country support guideline.  This guideline takes into
consideration the recent evidence of support for banks, in
addition to size, strength and degree of fragmentation of the
Argentinean banking system.  The implementation of the JDA
methodology also led to the upgrade of the local currency
deposit ratings of 15 banks by two notches, on average.  The
local currency deposit ratings for MBA Banco de Inversiones S.A.
and Banco Piano S.A. were upgraded by three notches, as a result
of the rise in their BFSR, as well as the inclusion of systemic
support.

Most of the national scale ratings, which are derived from the
global local currency deposit ratings, were also upgraded as a
result of the rise in deposit ratings.

BFSRs evaluate the stand-alone or intrinsic financial strength
of banks without reference to external support factors.  BFSRs
are the starting point of Moody's bank credit analysis, and are
an important determinant of Moody's bank deposit and debt
ratings.

Moody's then uses its JDA methodology to incorporate the
potential for external support into a bank's local currency
deposit rating.  The potential for external support can reduce
the riskiness of a bank's deposit and debt obligations; however,
such support is often uncertain.

Moody's uses conservative support assumptions and a limited
number of support levels to ensure that sufficient weight is
given to a bank's intrinsic financial strength in its bank
deposit and debt ratings.

Moody's uses deposit ratings to determine bank debt ratings
based on its notching guidelines for bank securities.  Ratings
for foreign currency obligations are determined after
considering Moody's country ceilings for foreign currency
ratings.

MBA Banco de Inversiones is a leading investment bank based in
Buenos Aires, Argentina, where it has operated since 1981 in
various associations with major international investment houses.


NUEVO BANCO: Moody's Lifts Fin'l Strength Rating to D from E+
-------------------------------------------------------------
Moody's Investors Service has confirmed that it raised its bank
financial strength rating on Nuevo Banco Bisel S.A. to D from
E+, in connection with the rating agency's implementation of its
refined joint default analysis and updated BFSR methodologies
for banks in Argentina.

Nuevo Banco Bisel's local currency deposit rating is upgraded to
Ba1 from Ba3 in line with the rating of its parent, Banco Macro.
The company's Foreign Currency Deposit Rating is affirmed at
Caa1, with positive outlook.  Its long term Argentine National
Scale Rating for Local Currency Deposits is raised to Aa1.ar
from Aa2.ar and its long term Foreign Currency deposit rating in
National Scale is affirmed at Ba1.ar.

The BFSRs of 18 Argentine banks were upgraded, by one or two
notches, as a result of their improving financial fundamentals
and evolving franchises, combined with an improving regulatory
environment.  Many of the banks that were upgraded had had
positive outlooks on their BFSRs.

Moody's has assigned support levels to banks in Argentina using
its high country support guideline.  This guideline takes into
consideration the recent evidence of support for banks, in
addition to size, strength and degree of fragmentation of the
Argentinean banking system.  The implementation of the JDA
methodology also led to the upgrade of the local currency
deposit ratings of 15 banks by two notches, on average.

Most of the national scale ratings, which are derived from the
global local currency deposit ratings, were also upgraded as a
result of the rise in deposit ratings.

BFSRs evaluate the stand-alone or intrinsic financial strength
of banks without reference to external support factors.  BFSRs
are the starting point of Moody's bank credit analysis, and are
an important determinant of Moody's bank deposit and debt
ratings.

Moody's then uses its JDA methodology to incorporate the
potential for external support into a bank's local currency
deposit rating.  The potential for external support can reduce
the riskiness of a bank's deposit and debt obligations; however,
such support is often uncertain.

Moody's uses conservative support assumptions and a limited
number of support levels to ensure that sufficient weight is
given to a bank's intrinsic financial strength in its bank
deposit and debt ratings.

Moody's uses deposit ratings to determine bank debt ratings
based on its notching guidelines for bank securities.  Ratings
for foreign currency obligations are determined after
considering Moody's country ceilings for foreign currency
ratings.


NUEVO BANCO: Moody's Ups Fin'l Strength Rating to D from E+
-----------------------------------------------------------
Moody's Investors Service has confirmed that it raised its bank
financial strength rating on Nuevo Banco Suquia S.A. to D from
E+, in connection with the rating agency's implementation of its
refined joint default analysis and updated BFSR methodologies
for banks in Argentina.

Nuevo Banco's Local Currency Deposit Rating is upgraded to Ba1
from Ba3, in line with the rating of its parent, Banco Macro.
The Foreign Currency Deposit Rating is affirmed at Caa1, with
positive outlook.  The company's long term Argentine National
Scale Rating for Local Currency Deposits is raised to Aa1.ar
from Aa2.ar and its long term Foreign Currency deposit rating in
National Scale is affirmed at Ba1.ar.

The BFSRs of 18 Argentine banks were upgraded, by one or two
notches, as a result of their improving financial fundamentals
and evolving franchises, combined with an improving regulatory
environment.  Many of the banks that were upgraded had had
positive outlooks on their BFSRs.

Moody's has assigned support levels to banks in Argentina using
its high country support guideline.  This guideline takes into
consideration the recent evidence of support for banks, in
addition to size, strength and degree of fragmentation of the
Argentinean banking system.  The implementation of the JDA
methodology also led to the upgrade of the local currency
deposit ratings of 15 banks by two notches, on average.

Most of the national scale ratings, which are derived from the
global local currency deposit ratings, were also upgraded as a
result of the rise in deposit ratings.

BFSRs evaluate the stand-alone or intrinsic financial strength
of banks without reference to external support factors.  BFSRs
are the starting point of Moody's bank credit analysis, and are
an important determinant of Moody's bank deposit and debt
ratings.

Moody's then uses its JDA methodology to incorporate the
potential for external support into a bank's local currency
deposit rating.  The potential for external support can reduce
the riskiness of a bank's deposit and debt obligations; however,
such support is often uncertain.

Moody's uses conservative support assumptions and a limited
number of support levels to ensure that sufficient weight is
given to a bank's intrinsic financial strength in its bank
deposit and debt ratings.

Moody's uses deposit ratings to determine bank debt ratings
based on its notching guidelines for bank securities.  Ratings
for foreign currency obligations are determined after
considering Moody's country ceilings for foreign currency
ratings.

Nuevo Banco Suquia S.A. is an Argentina-based bank.  In 2007, it
merged with Banco Macro S.A.


POWER COLD: Trustee To File General Report in Court Tomorrow
------------------------------------------------------------
Analia Fernanda Calvo, the court-appointed trustee for Power
Cold SA's reorganization proceeding, will submit to court a
general report containing an audit of the company's accounting
and banking records on May 8, 2007.

Ms. Calvo verified creditors' proofs of claim until
Feb. 13, 2007.  She then presented the validated claims in court
as individual reports on March 27, 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
Power Cold and its creditors.

Power Cold's creditors will vote on a settlement plan that the
company will lay on the table on Oct. 8, 2007.

The trustee can be reached at:

         Analia Fernanda Calvo
         Montevideo 589
         Buenos Aires, Argentina


ZONDA COLOR: Trustee To File Individual Reports Tomorrow
--------------------------------------------------------
Adolfo Jorge Santos, the court-appointed trustee for Zonda Color
S.A.'s reorganization proceeding, will present creditors'
validated claims as individual reports in the National
Commercial Court of First Instance No. 4 in Buenos Aires on
May 8, 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 Zonda Color and its creditors.

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

As reported in the Troubled Company Reporter-Latin America on
Feb. 6, 2007, Mr. Santos verified creditors' proofs of claim
until March 21, 2007.

Mr. Santos will also submit to court a general report containing
an audit of Zonda Color's accounting and banking records on
June 21, 2007.

The informative assembly will be held on Feb. 6, 2008.
Creditors will vote to ratify the completed settlement plan
during the assembly.

Clerk No. 8 assists the court in the proceeding.

The debtor can be reached at:

          Zonda Color S.A.
          Moreno 794
          Buenos Aires, Argentina

The trustee can be reached at:

          Adolfo Jorge Santos
          Junin 55
          Buenos Aires, Argentina




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


ISLE OF CAPRI: Will Continue Lucaya Resort Casino Operations
------------------------------------------------------------
The Isle of Capri Casinos Inc. told the St. Louis Business
Journal that it would continue its casino operations at Our
Lucaya Resort in Freeport, Bahamas.

According to The Business Journal, the Isle of Capri has been
the sole casino operator on the Grand Bahama Island since
December 2003.  The Isle of Capri had disclosed that it would
terminate its lease of the property on June 1.

The Business Journal relates that the Isle of Capri is working
with the Freeport government officials to complete an agreement
for the continuation of the firm's casino operations in the
resort.

Isle of Capri President and Chief Operating Officer Tim Hinkley
said in a statement, "We appreciate the diligent efforts put
forth by the Ministry of Tourism, the Gaming Board of the
Bahamas, the Hotel Corporation and government officials as we
worked together to complete this agreement."

Based in Biloxi, Miss., Isle of Capri Casinos Inc. (Nasdaq:
ISLE) -- http://www.islecorp.com/-- owns and operates casinos
in Biloxi, Lula and Natchez, Mississippi; Lake Charles,
Louisiana; Bettendorf, Davenport and Marquette, Iowa; Kansas
City and Boonville, Missouri and a casino and harness track in
Pompano Beach, Florida.  The company also operates and has a 57
percent ownership interest in two casinos in Black Hawk,
Colorado.  Isle of Capri Casinos' international gaming interests
include a casino that it operates in Freeport, Grand Bahama and
a two-thirds ownership interest in casinos in Dudley and
Wolverhampton, England.

                        *     *     *

Moody's Investors Service affirmed its Ba3 Corporate Family
Rating on Isle of Capri Casinos in connection with its
implementation of the new Probability-of-Default and Loss-Given-
Default rating methodology for the Gaming, Lodging & Leisure
sector.  Moody's assigned LGD ratings to four of the company's
debts including a LGD5 rating on its 9% Sr. Sub. Notes,
suggesting debt holders will experience a 76% loss in the event
of a default.

As reported in the Troubled Company Reporter on Nov. 8, 2006,
Standard & Poor's Ratings Services affirmed ratings on Isle of
Capri Casinos Inc., including its 'BB-' corporate credit rating.

At the same time, Standard & Poor's removed the ratings from
CreditWatch, where they were placed on Oct. 4, 2006, with
negative implications.  S&P said the outlook is stable.


PETROLEOS DE VENEZUELA: May Sell Bahamian Storage & Sea Terminal
----------------------------------------------------------------
A high-ranking official at Venezuelan state-run oil company
Petroleos de Venezuela SA said that the company might sell its
Bahamas storage and sea terminal Borco, Business News Americas
reports.

According to BNamericas, Borco can store up to 20 million
barrels of crude and other products.  Petroleos de Venezuela had
depended heavily on Borco in keeping surplus crude that couldn't
be processed in the US during Hurricane Katrina.

Hurricane Wilma reportedly damaged Borco later that year, but
the complex kept working.

Borco sale promoters told BNamericas that Petroleos de Venezuela
doesn't need a large storage complex in the Caribbean.

Petroleos de Venezuela directors led by the firm's refining vice
president, Alejandro Grando, met twice in Houston last year to
discuss the sale of Borco, BNamericas says, citing a source.

Published reports say that Petroleos de Venezuela gave Borco
industrial tenants, which include Brazilian state-owned oil firm
Petroleo Brasileiro, 90 days to leave the facility.

Petroleos de Venezuela allegedly retained an advisor to help
with the sale, BNamericas states.

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

                        *     *     *

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


PETROLEOS DE VENEZUELA: Terminates Borco Storage Pact
-----------------------------------------------------
Petroleos de Venezuela S.A. terminated May 1 an oil storage
accord with Brazil's Petroleos de Brasileiro in Borco terminal
in the Bahamas, Reuters reports.

The same report says Petroleo Brasileiro was given a final
eviction notice to leave the 1.4 million barrels of oil storage
facility.  The storage terminal will be up for sale.

El Universal says the agreement was terminated without cause.

                  About Petroleo Brasileiro

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

                About Petroleos de Venezuela

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

                        *     *     *

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




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


COEUR D'ALENE: Inks Merger Agreement with Bolnisi & Palmarejo
-------------------------------------------------------------
Coeur d'Alene Mines Corporation, Bolnisi Gold NL and Palmarejo
Silver and Gold Corporation have entered into agreements, which
have been approved unanimously by their respective boards of
directors, as well as a special committee of independent
directors of the Palmarejo board of directors, to merge creating
the world's leading primary silver producer.  Pursuant to the
agreements, Coeur will acquire all of the shares of Bolnisi, and
all of the shares of Palmarejo not owned by Bolnisi, in a
transaction valued at approximately US$1.1 billion.

Under the terms of the Transaction, Bolnisi shareholders will
receive 0.682 Coeur shares for each Bolnisi share they own (or,
at the election of the Bolnisi shareholder, CHESS Depositary
Interests representing Coeur shares), and Palmarejo shareholders
will receive 2.715 Coeur shares for each Palmarejo share they
own.  It is anticipated that this will result in Coeur issuing a
total of approximately 271.3 million new shares.  In addition,
Bolnisi and Palmarejo shareholders will receive a nominal cash
payment equal to AUS0.004 (US$0.003) per Bolnisi share and
CDN0.004 (US$0.003) per Palmarejo share.

Bolnisi and Palmarejo currently own 100% of the Palmarejo
Project, which is located in the state of Chihuahua, Mexico.
The Palmarejo Project is one of the highest-quality primary
silver projects in the world today, to which Coeur believes it
can create significant additional value by leveraging its
extensive exploration, development and underground and open pit
mining expertise.

The Transaction will create a combined entity that expects to
realize several significant strategic benefits, including:

   -- Leading Silver Producer: Upon completion of the
      Transaction and following commencement of production at
      the Palmarejo Project, Coeur will be positioned as the
      world's leading primary silver producer in terms of silver
      production and silver resources.  Based on Palmarejo
      mineral resource estimates and all the metallurgical and
      mining studies completed to date, Palmarejo is
      constructing a 2 million tonne per annum processing plant
      capable of producing 12 million ounces of silver and
      110,000 ounces of gold annually, which Coeur expects would
      nearly double its current production levels.  As a result
      of this Transaction, Coeur is expected to:

   -- Produce approximately 32 million silver ounces and
      approximately 290,000 gold ounces in 2009 -- silver
      production accounting for approximately two-thirds of
      total production by value based on analyst consensus metal
      prices for 2009;

   -- Possess a mineral resource base of over 364 million ounces
      of measured and indicated silver mineral resources
      (inclusive of silver mineral reserves) and 96.6 million
      ounces of inferred silver mineral resources and
      3.4 million ounces of measured and indicated gold mineral
      resources and 0.95 million ounces of gold inferred mineral
      resources.

   -- Have a leading growth profile with silver production
      compound annual growth of approximately 47% between 2007
      and 2009; and

   -- Continue its no-hedge silver policy, maximizing leverage
      to silver prices.

                 Well-Diversified Portfolio

Coeur owns and operates three silver mines in North America and
South America, owns all of the silver production and mineral
reserves of two operating mines in Australia, and is
constructing a new silver mine in Bolivia and a new gold mine in
Alaska.  The addition of the Palmarejo Project to Coeur's
portfolio will geographically diversify Coeur's asset mix and
provide entry into a prolific mining area of Mexico, which is
the world's second largest silver producing country.

              Increased Exploration Potential

The combination of Coeur's prospective exploration portfolio and
the Palmarejo properties is expected to provide considerable
exploration upside potential for shareholders.

                     Low-Cost Producer

The Palmarejo Project's anticipated low operating costs are
expected to materially reduce Coeur's overall cash costs, making
Coeur a competitive low-cost producer in the sector.  Following
the commencement of production at the Palmarejo Project, Coeur
anticipates that its operating costs will be below US$2.00 per
ounce of silver (after by-product credits).

                 Sector Leading Liquidity

Coeur is currently listed on both the NYSE and TSX, and, in
connection with the Transaction, Coeur intends to seek listing
of its shares on the ASX in the form of CHESS Depositary
Interests.  Coeur expects to remain one of the world's most
liquid publicly-traded silver mining companies.

                    Strong Balance Sheet

Based on Coeur's, Bolnisi's and Palmarejo's balance sheets as at
Dec. 31, 2006, the pro forma cash position of the combined
company would be US$382 million, which is expected to be
sufficient to fund all three growth projects -- San Bartolome,
Kensington and Palmarejo -- without further equity dilution.

"With this transaction we are establishing Coeur as the clear
leader in the silver mining industry," said Dennis E. Wheeler,
Coeur's Chairman, President and Chief Executive Officer.  "Coeur
will have an unrivaled platform of silver mines and projects,
which we expect to provide substantial growth at low cost.  In
addition, we have performed substantial due diligence on the
Palmarejo Project and are pleased to be making a substantial
strategic investment in Mexico.  We believe that we can add
substantial value, leveraging our development, operational and
exploration expertise to the Palmarejo Project.  The Board of
Directors and I are excited about the future of the combined
company, and we look forward to delivering the significant
benefits of the combination to all of our shareholders."

Norman A. Seckold, Executive Chairman of Bolnisi, said, "We are
very excited about today's announcement.  This transaction
provides our shareholders with immediate value for their shares
as well as the opportunity to participate in the upside
potential of what we believe will be the world's premier silver
producer.  By leveraging Coeur's expertise in underground and
open cut project development, we expect to realize the full
value of the Palmarejo Project."

David Fennell, Chairman of the Special Committee of independent
directors of Palmarejo said, "The Special Committee has
undertaken a comprehensive review of the transaction, including
seeking advice from both our financial advisor and legal
counsel, and has received a fairness opinion from its financial
advisor.  The Special Committee also retained a separate and
independent financial advisor to complete a formal valuation in
connection with the transaction as contemplated by Canadian
securities laws.  After careful consideration, the Special
Committee has unanimously recommended approving the transaction
to the Palmarejo board of directors, who have in turn approved
entering into the agreement.  Furthermore, the Palmarejo board,
on the recommendation of the Special Committee has authorized
the submission of the arrangement to Palmarejo shareholders for
their approval at a special meeting of shareholders and the
Palmarejo Board unanimously recommends that Palmarejo
shareholders vote in favor of the transaction."

Based on Coeur's stock price as of close of business on
May 2, 2007, Bolnisi shareholders will receive the equivalent of
AUS3.35 (US$2.76) per share, and Palmarejo shareholders will
receive the equivalent of CDN12.20 (US$11.00) per share.  The
agreed terms represent a 9% premium over Bolnisi's closing stock
price on May 1, 2007, the last full trading day before the
company entered a trading halt, and a 14% premium over the
volume-weighted average price of Bolnisi shares over the last 60
trading days.  The agreed terms also represent a 40% premium
over Palmarejo's closing stock price on May 1, 2007, the last
trading day for Palmajero before the transaction was announced,
and a 32% premium over the volume-weighted average price of
Palmarejo shares over the last 60 days.

Each of the directors of Bolnisi has entered into a call option
deed, which, between them, grants Coeur the right to acquire up
to 19.9% of Bolnisi's outstanding shares held by the directors
at the same price as that offered by Coeur to other Bolnisi
shareholders under the Bolnisi Scheme of Arrangement.

Under the terms of the Transaction, Bolnisi, Palmarejo and Coeur
have agreed to give each other exclusivity, subject to certain
exceptions and have agreed to a reciprocal break fee of 1%
payable in certain circumstances.

                      Palmarejo Project

The Palmarejo Project, expected to be one of the world's lowest
cost primary silver mines, is wholly-owned by, and the major
asset of, Palmarejo.  Bolnisi is the majority shareholder of
Palmarejo, holding 73.6% of its outstanding shares.

The Palmarejo tenement covers approximately 12,160 hectares and
the current development project is located on one of 14 silver
targets identified to date on the tenement.  The Palmarejo
Project is located in the state of Chihuahua in northern Mexico
and lies in Mexico's premier silver region, the gold-silver belt
of the Sierra Madre Occidental.

Construction of the Palmarejo Project began during September
2006.  Based on Palmarejo mineral resource estimates and all the
metallurgical and mining studies completed to date, Palmarejo is
constructing a 2 million tonne per annum processing plant
capable of producing 12 million ounces of silver and 110,000
ounces of gold annually, nearly equal to the 13 million silver
ounces and 136,000 gold ounces expected to be produced by Coeur
in 2007.  Coeur and Palmarejo will form a joint management
committee to oversee progress on the Palmarejo Project pending
completion of the Transaction.  The joint management committee
will pursue an optimization scenario based on Coeur's plan for a
combined open pit and underground development targeting enhanced
project economics, with first production expected in late 2008.

                          Approvals

The Transaction is subject to approval by the shareholders of
Coeur, Bolnisi and Palmarejo, the completion of satisfactory due
diligence by Coeur (which shall be completed within 30 days of
this announcement) and the satisfaction of customary closing
conditions (including completion of regulatory reviews and
receipt of regulatory approvals, including those of antitrust
agencies).  The consummation of each of the Bolnisi transaction
and the Palmarejo transaction is also conditioned upon the
consummation of the other transaction, although Coeur has the
right to waive this condition if the Palmarejo transaction does
not proceed, and still proceed with the Bolnisi transaction.
Assuming timely completion of the required regulatory processes
and receipt of the required shareholder and Court approvals, the
companies expect the Transaction to be completed in the third
quarter of 2007.

The Bolnisi Scheme of Arrangement requires the approval of
three-fourths of the total shares voted, plus half of the
shareholders present and voting at the meeting, either in person
or by proxy.  The Palmarejo Plan of Arrangement must be approved
by two-thirds of the votes cast by shareholders present and
voting at a special meeting of shareholders called to consider
the Transaction, as well as a simple majority of the votes cast
by such shareholders (excluding interested parties).  Both
Arrangements require approval by the applicable courts in Canada
and Australia.

Coeur's Board of Directors has unanimously approved the
Transaction and recommends that Coeur shareholders vote in favor
of proposals required for its implementation.  Prior to the
Bolnisi and Palmarejo shareholder meetings, Coeur will convene a
special meeting of its shareholders to approve an amendment to
Coeur's articles of incorporation to increase the number of its
authorized capital and to approve the issuance of shares
required to implement the Transaction. These proposals require
the approval of a majority of the Coeur shares that are present
or represented by proxy at the shareholder meeting.

CIBC World Markets is acting as financial advisor to Coeur.
Freehills, Gibson, Dunn & Crutcher LLP, Goodmans LLP and Rubio
Villegas y Asociados, S.C. are acting as legal counsel to Coeur.
Cormark Securities Inc. is acting as financial advisor to
Bolnisi and Minter Ellison and Dorsey & Whitney LLP are acting
as legal counsel.  Dundee Securities Corporation is acting as
financial advisor to Palmarejo's Special Committee and Westwind
Partners Inc. has provided a formal valuation to the Special
Committee of independent directors of Palmarejo and Stikeman
Elliott LLP and Dorsey & Whitney LLP are acting as Palmarejo's
legal counsel.

                        About Bolnisi

Bolnisi Gold NL is an Australia-based company engaged in mining
and exploration for gold and minerals. The Company's activities
are all Mexican precious metals operations with an existing
portfolio of projects, which include the Palmarejo Silver-Gold
project (including Trogan), Chihuahua; the Yecora Gold-Silver
project, Sonora, and the El Realito Gold-Silver project,
Chihuahua.

                       About Palmarejo

Palmarejo Silver And Gold Corporation is a silver/gold
exploration company listed on the TSX Venture Exchange under the
symbol "PJO". Palmarejo's principal activity is to explore and
develop gold and silver properties located in the Temoris
District of Chihuahua, Mexico within the Sierra Madre Occidental
mountain range.

                     About Coeur d'Alene

Coeur d'Alene Mines Corp. (NYSE:CDE) (TSX:CDM) --
http://www.coeur.com/-- is the world's largest primary silver
producer, as well as a significant, low-cost producer of gold.
The company has mining interests in Nevada, Idaho, Alaska,
Argentina, Chile, Bolivia and Australia.

                        *     *     *

Coeur d'Alene Mines Corp.'s US$180 Million notes due
Jan. 15, 2024, carry Standard & Poor's B- rating.




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


ACE SEGURADORA: Moody's Rates Global Local Currency at Ba3
----------------------------------------------------------
Moody's Investors Service has assigned a Aaa.br national scale
insurance financial strength rating and a Baa1 global local
currency insurance financial strength rating to ACE Seguradora
S.A.  Both ratings have stable outlooks.

ACE Seguradora -- an indirect wholly-owned subsidiary of ACE
Limited (NYSE: ACE) -- underwrites primarily marine and cargo
insurance (third largest insurer in this market with a 9% share
in 2006), casualty (also the third largest, with a 13% share),
and accident and health coverages.  Other core business lines
include homeowners, property, and insurance for small and
medium-sized businesses.  ACE Seguradora's product distribution
is conducted mainly through international brokers, through
smaller and medium-sized national brokers oriented to ACE's
segment appetite, and through affinity marketing initiatives --
such as credit cards, financing companies, utilities and
cellular telephone companies. Management strategy focuses on
generating underwriting profits, which has been consistently
achieved over time.

In the Latin America region, in addition to ACE Seguradora,
Moody's also rates ACE Seguros S.A. (Argentina) for insurance
financial strength at Ba3 global local currency, Aa2.ar national
scale.

According to Moody's, ACE Seguradora's ratings reflect its
strong and consistent profitability, its broad product
diversification, its sound financial management, and the
financial flexibility and management oversight it receives from
its ultimate parent company.  These positive rating
considerations are somewhat offset by the company's asset
quality risk associated with investments in Brazilian Government
bonds (rated Ba2), by its relatively modest penetration in the
Brazilian general insurance market (less than 2% share) -- which
is largely a consequence of its strategy to focus on specialty
niches and not compete in the more mature and price-competitive
segments of the market -- and by its geographic business
concentrations.

Furthermore, Moody's noted that, although ACE Seguradora's
current capitalization comfortably exceeds regulatory
requirements in Brazil, the company's risk-adjusted
capitalization -- like nearly all Brazilian insurers -- is
constrained primarily by its investment quality and, to a lesser
degree, by potential volatility in underwriting results.
Moody's expects that, with the adoption of new solvency
guidelines for Brazilian general insurers in 2008 and beyond,
ACE Seguradora will likely need to increase its capitalization
levels.  That said, Moody's views the company's access to its
parent company's financial flexibility as being a distinct
positive credit consideration.

According to Rodolfo Nobrega, Assistant Vice President and lead
Insurance Analyst for Brazil at Moody's, "ACE Seguradora is a
highly focused company and has been consistently profitable.
Despite a declining interest rate environment in Brazil, ACE
Seguradora's underwriting proficiency and strategic focus on
operating profit should continue to more than offset reduced
prospective investment yields."

Elaborating on its rating rationale, Moody's notes that ACE
Seguradora's affiliation with ACE Limited, which is rated A3 on
a global scale for senior unsecured debt, is a positive credit
consideration, as the company has access to management expertise
in all major areas, including underwriting, finance, claims and
actuarial.  Additionally, ACE Seguradora has produced strong
earnings in the past five years, with returns on equity over 20%
and combined underwriting ratios in the mid-to-high 80% range.
Notwithstanding the company's relatively modest overall
penetration, ACE Seguradora has a well-diversified book of
business, providing reasonable predictability of ultimate
losses, and a good position in certain commercial and specialty
lines.  Furthermore, the group is expanding its geographical
reach, by the opening of two new branches -- Salvador and
Campinas -- which should contribute to a lower business
concentration in Sao Paulo and, consequently, a broader spread
of risk.

Alan Murray, Vice President and Senior Credit Officer at Moody's
noted: "ACE Seguradora's credit profile also benefits from its
operational and financial oversight by, and common branding
with, ACE Limited, which has a significant regional presence
throughout all of the major countries in the Latin America
region, and a strong global platform in both commercial and
specialty insurance and reinsurance."

Among factors that could result in an upgrade for ACE
Seguradora's rating, Moody's noted the following: an increase of
the company's market share (e.g. to over 4%), supported by a
more balanced geographic presence in Brazil; a sustained
improvement in the company's underwriting leverage to under 3x,
and/or increased explicit or implicit support from ACE Limited
or its principal subsidiaries.  Conversely, a sharp decline in
net income (e.g. sustained returns on equity below 10%) and a
significant reduction in the parent company's financial
flexibility and/or degree of support are factors that could
result in a rating downgrade.

ACE Seguradora S.A. is headquartered in Sao Paulo, Brazil, and
has branches in Belo Horizonte, Campinas, Curitiba, Porto
Alegre, Rio de Janeiro and Salvador.  In 2006, ACE Seguradora
reported gross written premium of R$560.4 million and net income
of BRL21.7 million.  As of Dec. 31, 2006, the company reported
shareholder's equity of BRL109.3 million, compared to BRL94.9
million as of Dec. 31, 2005.  ACE Limited, which is domiciled in
the Cayman Islands, with headquarters in Bermuda, is engaged
through its subsidiaries in providing insurance, reinsurance and
financial products and services to corporate and insurance
company clients on a global basis.  For the full year 2006, ACE
Limited reported consolidated net premiums written of US$12.0
billion and net income of US$2.3 billion.  As of Dec. 31, 2006,
the company reported shareholders' equity of US$14.3 billion.


ALERIS INTERNATIONAL: Completes EKCO Products Acquisition
---------------------------------------------------------
Aleris International Inc. has completed its purchase of EKCO
Products' assets, a light gauge sheet and heavy gauge foil
producer headquartered in Clayton, New Jersey.

As reported in the Troubled Company Reporter-Latin America on
April 27, 2007, Aleris International has entered into a
definitive agreement with Charter Oak Capital Partners to
acquire the assets of EKCO Products.

Headquartered in Beachwood, Ohio, Aleris International Inc.
(NYSE: ARS) -- http://www.aleris.com/-- manufactures rolled
aluminum products and offers aluminum recycling and the
production of specification alloys.  The company also
manufactures value-added zinc products that include zinc oxide,
zinc dust and zinc metal.  The Company operates 42 production
facilities in the United States, Brazil, Germany, Mexico and
Wales, and employs approximately 4,200 employees.

                        *     *     *

As reported on Dec. 22, 2006, Standard & Poor's rated Aleris
International Inc.'s senior secured first-lien term loan carries
at 'B+' loan and gave the company a '2' recovery rating after
the report that the company increased the term loan by
US$125 million.

Ratings List:

   * Aleris International Group

      -- Corporate Credit Rating at B+/Stable/
      -- Senior Secured B+


BANCO NACIONAL: Grants BRL34.7-Million Financing to Natura
----------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social aka BNDES
approved a financing to Natura Inovacao e Tecnologia de Produtos
Ltda, for BRL34.7 million, to implement a new Technology and
Research Center, in Campinas.  The project, forecast to be
inaugurated in 2008, will have a 12 thousand m2-constructed area
and may shelter 300 researchers.

The new Technology and Research Center has as its goal to
anticipate the demand for new technologies and enhance the
research culture.  In its construction, three major areas were
considered: laboratories, corporate and support.  The
laboratories will have 4,770 m2; the corporate areas 5,530 m2;
and the technical and support areas 1,700 m2.

The activities of the new center will interact with local and
international scientific communities.  Thus, a few premises were
established in the selection of its location, such as nearness
to technologic centers as UNICAMP -- Universidade Estadual de
Campinas [Campinas State University]; IPT -- Instituto de
Pesquisas Tecnologicas [Technologic Researches Institute] and
CNPq -- Conselho Nacional de Desenvolvimento Cientˇfico e
Tecnologico [National Council of Scientific and Technologic
Development].  Easy access to airports and to company plant
located in the city of Cajamar, Sao Paulo, was also taken into
account.

Important technologic innovations will be applied in the
conception, construction and operation of the building.
Rainwater will be used for irrigation, while the pumping will
use Aeolian energy, biomass and other alternative forms of
energy.

In Brazil, the sector of cosmetic direct sales shows high
capacity to generate employment and income.  In the last few
years, the employment opportunities have been increasing 8.8%,
in average, according to the Brazilian Association of Personal
Hygiene Industry.  In 2005, 58% of sector labor was associated
to the direct sales system (adopted by Natura).

Natura has around 627 thousand consultants, 566 thousand in
Brazil, and 60 thousand abroad (Argentina, Peru, Chile, Mexico,
Venezuela and France) and more than 6 thousand collaborators.

                         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.


BRASKEM SA: Earns BRL107 Million in Quarter Ended March 31
----------------------------------------------------------
Braskem S.A. reported its financial results for the first
quarter in 2007.

Financial Highlights:

   -- Braskem's net revenue reached BRL2.9 billion in first
      quarter 2007, or a 5% growth from first quarter 2006;

   -- Braskem's EBITDA for the first quarter 2007 was
      BRL432 million, with a 15.1% margin on net revenues.

   -- Braskem earned net income of BRL107 million in first
      quarter 2007 compared to BRL124 million in first quarter
      2006.

   -- For the last twelve months (from April 2006 to March 2007)
      Braskem net revenue was BRL12 billion and EBITDA, for the
      same period, was BRL1.7 billion, with a 14% margin.

Braskem advances in the consolidation of the Brazilian
petrochemical industry:

   -- Acquisition of the Ipiranga Group: On March 18, 2007,
      Ultrapar Participacoes S.A., having Petrobras and Braskem
      as intervening parties, entered into an irrevocable
      agreement to acquire, for Ultrapar itself, the Ipiranga
      Group and, as commission agent on behalf of Braskem and
      Petrobras, for the acquisition of petrochemical assets
      and, with respect to Petrobras, of certain distribution
      assets.  Braskem and Petrobras, in the proportion of
      60/40, acquired the following petrochemical businesses:
      Ipiranga Quimica, Ipiranga Petroquimica, including the
      latter's 29.46% stake in the voting and total capital of
      Copesul.  On April 18, the financial settlement of the
      first phase of the transaction was carried out and
      BRL2.1 billion was paid; of this total, BRL652 million was
      paid by Braskem.  The total estimated amount to be
      disbursed by Braskem until the end of the transaction is
      BRL1.1 billion, including the estimated amount to
      delist Copesul.

   -- CADE pronouncement on the Ipiranga Group assets purchase
      transaction:  On April 25, CADE (Brazilian antitrust
      authority) revoked a prior writ of prevention given
      Braskem's proposal to execute an agreement to
      preserve the reversibility of the transaction (APRO).

   -- On April 18, 2007, Braskem filed a request for a public
      tender offer to acquire the shares and delist Copesul, in
      accordance with a relevant notice published on March 19.

On April 16, 2007, Braskem signed an agreement for the formation
of two joint ventures, within an estimated 90-day term, to
develop and implement in Venezuela what should be the most
modern and competitive integrated petrochemical project in the
Americas, named the Jose Petrochemical Complex.

The merger of Politeno was approved on April 2, 2007, by the
Extraordinary General Meetings of Braskem and Politeno, thus
completing the acquisition process announced one year before.

Braskem entered into a contract with Refinaria Alberto
Pasqualini -- ReFAP -- located in Canoas, State of Rio Grande do
Sul, for the initial supply of 70 thousand tons of propylene per
year, with potential to exceed 100,000 tons per year with the
anticipated increases in the refinery production.

                       About Braskem

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

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
March 26, 2007, Fitch Ratings has affirmed its BB+ ratings on
Braskem S.A. and Braskem International following the
announcement by Braskem, Petrobras and the Ultra Group that they
have reached an agreement to acquire the Ipiranga Group's
petrochemical, refining and fuel distribution assets.

Fitch also affirmed these ratings:

  Braskem S.A.

    -- Foreign currency issuer default rating at 'BB+';
    -- Local currency issuer default rating at 'BB+';;
    -- Senior unsecured notes 2008, 2014 at 'BB+';
    -- Senior unsecured Perpetual Bonds at 'BB+';
    -- Senior unsecured notes 2017 at 'BB+';
    -- National rating at 'AA (bra)';
    -- Debentures 12th Issuance at 'AA (bra)'; and
    -- Debentures 13th Issuance at 'AA (bra)'.

  Braskem International

    -- Senior unsecured notes 2015 at 'BB+'.


DURA AUTOMOTIVE: Evaluates Strategic Options for Atwood Group
-------------------------------------------------------------
DURA Automotive Systems, Inc., is exploring strategic
alternatives for its Atwood Mobile Products division,
headquartered in Elkhart, Indiana.  DURA has engaged Miller
Buckfire as its exclusive financial advisor in connection with
the strategic evaluation, including solicitation of interest
from prospective acquirers of Atwood Mobile Products, Inc.  In
consultation with its financial advisor, DURA will consider
whether a sale or a growth strategy would maximize Atwood's
financial contribution to the company.

With 2006 sales of approximately US$330 million, Atwood offers a
broad range of products to the recreation vehicle, specialty
vehicle and manufactured housing markets.  The division's
products encompass windows and doors, specialty glass, hardware
appliances and electronics.  Founded in 1909, Atwood was
acquired by automotive supplier Excel Industries, which was then
acquired by DURA in 1999.

"Atwood enjoys leading market positions in each of its product
categories based on a reputation for product innovation, quality
manufacturing and superior customer service," Larry Denton,
DURA's chairman and chief executive officer, said.  "While the
group is profitable and growing, we believe it is in the best
interests of our shareholders, customers and employees to
conduct a full review of strategic alternatives with respect to
Atwood, including evaluation of further growth alternatives and
divestiture options."

Atwood provides the most extensive product line of any supplier
to the recreation vehicle industry, with more than 90% of the
recreation vehicles on the road using Atwood products.  The RV
industry has experienced consistent historical growth, with RV
ownership currently at record levels.  Industry trends point
toward significant future growth due to favorable population
demographics and increasing purchase interest.

              About DURA Automotive Systems Inc.

Rochester Hills, Mich.-based DURA Automotive Systems Inc.
(Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive industry.  The company is also a supplier of similar
products to the recreation vehicle and specialty vehicle
industries.  DURA sells its automotive products to North
American, Japanese and European original equipment manufacturers
and other automotive suppliers.

The Debtors filed for chapter 11 petition on Oct. 30, 2006
(Bankr. D. Delaware Case No. 06-11202).  Richard M. Cieri, Esq.,
Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan
Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel
for the Debtors' bankruptcy proceedings.  Mark D. Collins, Esq.,
Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of
Richards Layton & Finger, P.A. Attorneys are the Debtors' co-
counsel.  Baker & McKenzie acts as the Debtors' special counsel.
Togut, Segal & Segal LLP is the Debtors' conflicts counsel.
Miller Buckfire & Co., LLC is the Debtors' investment banker.
Glass & Associates Inc., gives financial advice to the Debtor.
Kurtzman Carson Consultants LLC handles the notice, claims and
balloting for the Debtors and Brunswick Group LLC acts as their
Corporate Communications Consultants for the Debtors.  As of
July 2, 2006, the Debtor had US$1,993,178,000 in total assets
and US$1,730,758,000 in total liabilities.

The Debtors' exclusive plan-filing period expires on
May 23, 2007.


GERDAU AMERISTEEL: First Quarter Net Income Up to US$133.5 Mil.
---------------------------------------------------------------
Gerdau Ameristeel Corporation reported net income of US$133.5
million on net sales of US$1.3 billion for the three months
ended March 31, 2007, compared to net income of US$88.8 million
on net sales of US$1.1 billion for the three months ended
March 31, 2006.  EBITDA for the three months ended
March 31, 2007, was US$244.8 million, compared to EBITDA for the
three months ended March 31, 2006, of US$173.4 million.

Included in selling and administrative expense for the three
months ended March 31, 2007, is a non-cash pretax expense of
US$8.8 million to mark to market outstanding stock appreciation
rights and expenses associated with other executive compensation
agreements compared to a non-cash pretax expense of
US$26.4 million for the three months ended March 31, 2006.

On May 2, 2007, the Board of Directors approved a quarterly
dividend of US$0.02 (two US$ cents) per common share, payable
June 1, 2007 to shareholders of record at the close of business
on May 16, 2007.

Excluding 50% owned joint ventures, the company shipped
1.9 million tons of finished steel in the three months ended
March 31, 2007, an increase of 16.2% over the three months ended
March 31, 2006.  This increase resulted from the incremental
tons shipped from the Sheffield Steel Corporation and Pacific
Coast Steel (PCS) operations which were acquired in June and
November 2006 and strong demand across most of the Company's
long product group.  Average mill prices for the three months
ended March 31, 2007, increased US$35 per ton, or 6.3%, compared
to the three months ended March 31, 2006.  Average fabricated
steel prices for the three months ended March 31, 2007,
increased US$122 per ton, or 16.5%, compared to the three months
ended March 31, 2006.  This comparative increase in average
prices was a result of the Company acquiring PCS in November
2006.  PCS derives a significant portion of their revenue from
the installation of reinforcing steel, which results in a higher
average net selling price.  Scrap raw material cost used in
production for the three months ended March 31, 2007, increased
US$31 per ton, or 17.0%, compared to the three months ended
March 31, 2006.  Metal spread, the difference between mill
selling prices and scrap raw material cost, for the three months
ended March 31, 2007, increased US$4 per ton, or 1.0%, compared
to the three months ended March 31, 2006.  Some of this increase
in scrap costs in the most recent quarter remains in the cost of
inventory because the Company maintains approximately one to two
months of inventory on hand.  When taking this into
consideration, the cost of scrap that flowed through earnings
was approximately US$20 to US$30 per ton less than the cost of
the scrap used in production.  Mill manufacturing costs were
US$251 per ton for the three months ended March 31, 2007,
compared to US$245 per ton for the three months ended
March 31, 2006.

Effective Jan. 1, 2007, the company adopted Financial Accounting
Standards Board Staff Position # AUG-AIR-1, "Accounting for
Planned Major Maintenance Activities".  This guidance
specifically precludes the use of the previously acceptable
"accrue in advance" method of accounting for these activities.
In compliance with this new guidance, the company has
retroactively adjusted the Condensed Consolidated Statement of
Earnings for the three months ended March 31, 2006, and the
Condensed Consolidated Balance Sheet and Condensed Consolidated
Statement of Changes in Shareholders' Equity for the year ended
Dec. 31, 2006, which has resulted in increases in net income and
equity of US$1.5 million and US$1.3 million, respectively.

               50% Owned Joint Venture Results

The following table summarizes the results of the company's
portion of its 50% owned joint ventures, primarily Gallatin
Steel, a flat rolled mill joint venture with Dofasco Inc.

For the three months ended March 31, 2007, Gerdau Ameristeel's
income from operations was US$195.7 million and the company's
share of the operating income of the 50% owned joint ventures
was US$18.1 million.  Based on 2.1 million tons of finished
steel shipped, the composite operating income was US$102 per ton
for the three months ended March 31, 2007.  For the three months
ended March 31, 2006, Gerdau Ameristeel's income from operations
was US$118.0 million and its share of the operating income of
the 50% owned joint ventures was US$29.4 million.  Based on 1.8
million tons of finished steel shipped, the composite operating
income was US$81 per ton for the three months ended
March 31, 2006.

                        CEO Comments

Mario Longhi, President and CEO of Gerdau Ameristeel, commented:
"We are pleased with the strong financial results in the first
quarter.  With the rapidly escalating steel prices, shipments of
finished steel products were strong in the March quarter as
customers anticipated future demand and ordered steel before
price escalation.  This will create certain challenges in the
June quarter as most customer inventory levels are above
average.  Despite this short-term volatility, the fundamentals
of the company's businesses remain sound and we are still
cautiously optimistic for the remainder of 2007.

During the quarter, the company successfully concluded three of
its outstanding labor agreements with our employees at Wilton,
Iowa, St. Paul, Minnesota and Beaumont, Texas.  In addition, on
April 2, we announced that the company reached a new three-year
agreement with our workforce at Whitby, Ontario whose contract
expired on Feb. 27.  The company believes that the framework of
these agreements will provide it with the ability to pursue
higher levels of competitiveness at these locations.

Headquartered in Tampa, Florida, Gerdau Ameristeel (NYSE: GNA;
TSX: GNA) is a subsidiary of Brazil's Gerdau SA in the United
States.  The company produces rebar, merchant bar, structural
shapes, wire rod, and flat-rolled sheet at 17 North American
mini mills, and conducts downstream steel fabricating operations
at 50 facilities.

                        *     *     *

As reported in the Troubled Company Reporter on Jan. 19, 2007,
Standard & Poor's Ratings Services placed its ratings, including
its 'BB' corporate credit rating, on Tampa, Florida-based Gerdau
Ameristeel Corp. on CreditWatch with positive implications.


GERDAU SA: Mulls Expansion in China
-----------------------------------
Gerdau SA Chief Executive Officer Andre Gerdau Johannpeter told
the press that the company has considered expanding its
operations into China.

Mr. Johannpeter commented to Business News Americas, "There is
no deadline or confirmation at this moment of entering the
market or any business [deal].  We have been studying for
several months and we will continue to do so until we find a
good opportunity to invest in China."

Gerdau has expressed enthusiasm in acquisitions.  The firm
acquired a majority stake in Peruvian steel maker Siderperu in
2006 and bought steel companies in the US.  Gerdau also acquired
Mexican firm Siderurgica Tultitlan for US$259 million this year,
BNamericas states.

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

                        *     *     *

As reported in the Troubled Company Reporter on Jan. 19, 2007,
Standard & Poor's Ratings Services placed its ratings, including
its 'BB' corporate credit rating, on Tampa, Fla.-based Gerdau
Ameristeel Corp. on CreditWatch with positive implications.


GERDAU SA: Net Profit Increases to BRL869 Mil. in First Quarter
---------------------------------------------------------------
Gerdau SA said in its quarterly financial report that its
consolidated net profit increased 4.4% to BRL869 million in the
first quarter 2007, from the first quarter 2006.

Business News Americas relates that Gerdau's net revenue in the
first quarter 2007 grew 15.6% to BRL6.49 billion, compared to
BRL5.61 billion in the first quarter 2006.  Its Ebitda increased
17.4% to BRL1.37 billion, from BRL1.17 billion.

According to BNamericas, Gerdau's total sales volume increased
11.1% year-over-year to 4.1 million tons in the first quarter
2007.  Crude steel output grew 7.7% to 4 million tons and rolled
steel production increased 11.7% to 3.4 million tons.

The report says that Gerdau's net profits from Brazilian
operations dropped 13% to BRL483 million in the first quarter
2007, compared to the first quarter 2006.  The bottom line from
South American operations, excluding Brazil, increased almost
24% to BRL78 million.  Net income grew 42% to BRL277 million in
North America, and increased 85% in Europe at BRL31 million.

Gerdau's Investor Relations Director Osvaldo Schirmer told
reporters, "Of all the various sectors we operate [in Brazil],
the civil construction sector is very demanding."

BNamericas notes that Gerdau wants to increase sales to the
civil construction sector by up to 8% in 2007.

According to the report, Gerdau's spending on fixed assets in
the first quarter 2007 totaled US$382 million, mainly to expand
the capacity of the Acominas mill in Minas Gerais to 4.5 million
tons yearly from 3.0 million tons per year.  The expanded area
will start operating by year-end.

Mr. Schirmer told BNamericas that Gerdau will invest US$4
billion into projects in the 2007-09 period.  About US$1.4
billion of the investment would be disbursed in 2007, while some
US$1.1 billion would be made in 2008.  The remaining US$1.5
billion would be disbursed in 2009.

Gerdau's Brazilian operations will get about US$2.4 billion,
South American operations will have US$500 million, while US$150
million will go to Europe.  North America will receive US$900
million.  Crude steel capacity will then increase 12% to 21.9
million tons a year, while rolled steel capacity will grow 8% to
18.7 million tons per year, BNamericas states.

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

                        *     *     *

As reported in the Troubled Company Reporter on Jan. 19, 2007,
Standard & Poor's Ratings Services placed its ratings, including
its 'BB' corporate credit rating, on Tampa, Fla.-based Gerdau
Ameristeel Corp. on CreditWatch with positive implications.


HUDSON HIGHLAND: Robert W. Baird Keeps Outperform Rating on Firm
----------------------------------------------------------------
Robert W. Baird analysts have kept their "outperform" rating on
Hudson Highland Group's shares, Newratings.com reports.

Newratings.com relates that the target price for Hudson
Highland's shares was set at US$19.

The analysts said in a research note published on May 3 that
Hudson Highland reported its results for the first quarter 2007
ahead of the estimates in all regions.

The analysts told Newratings.com that Hudson Highland's
performance in North America appears "to be stabilizing."
Profit increase in its European and Asia Pacific operations in
the first quarter 2007 was strong.

Hudson Highland's second quarter guidance seems robust,
Newratings.com states, citing Robert W. Baird.

Headquartered in New York, New York, Hudson Highland Group, Inc.
(Nasdaq: HHGP)-- http://www.hhgroup.com/-- is a provider of
permanent recruitment, contract professionals and talent
management services worldwide.  From single placements to total
outsourced solutions, Hudson helps clients achieve greater
organizational performance by assessing, recruiting, developing
and engaging the best and brightest people for their businesses.
The company employs more than 3,600 professionals serving
clients and candidates in more than 20 countries including
Argentina, Australia, Belgium, Brazil, and Canada.

                        *     *     *

As reported in the Troubled Company Reporter on Nov. 7, 2006,
Moody's Investors Service assigned a Ba2 rating to the company's
US$7,500,000 Income Notes Due 2042.


MRS LOGISTICA: Earns BRL121 Million in First Quarter 2007
---------------------------------------------------------
MRS Logistica said in a statement that its net profits increased
23.5% to BRL121 million in the first quarter 2007, compared to
the BRL98.4 million in the first quarter 2006.

Business News Americas relates that MRS Logistica's net revenue
rose 16.8% to BRL480 billion in the first quarter 2007, from
last year's first quarter.

Due to strong harvest and the high demand for iron ore in
Brazil, MRS Logistica transported 27.8 million tons in the first
quarter 2007, or 11.2% more than the same period in 2006,
BNamericas notes.

According to BNamericas, MRS Logistica increased its investments
in rolling stock and track improvements in the first quarter
2007.  Investments rose 122% to BRL142 million, from the first
quarter 2006.  MRS Logistica purchased 273 wagons and 38 used
locomotives for the transportation of iron ore.

MRS Logistica would increase shipment 15% to 130 million tons of
materials in 2007, from 113 million tons transported in 2006,
BNamericas states.

The MRS consortium is a railway freight transport company
established in 1996 to operate approximately 1,700 kilometers of
track in the states of Minas Gerais, Rio de Janeiro e Sao Paulo.
MRS's rail network is also linked to the Central Atlantic,
Vitoria-Minas and Sao Paulo Railroads, offering intramodal
transportation options to the other parts of the country.  The
company mainly transports cargo for its principle shareholders.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Dec. 27, 2006, Standard & Poor's Ratings Services affirmed its
'BB' local- and foreign-currency corporate credit ratings on
Brazil-based railroad company MRS Logistica S.A.

MRS's total on-balance-sheet debt was US$332 million in
September 2006.

Standard & Poor's also said that the outlook on MRS remains
stable.

The ratings on MRS reflect:

   -- some client concentration, with reliance on iron ore
      captive cargoes;

   -- limited scope of its assets (comparatively a short
      railroad); and

   -- the capital-intensive nature of the railroad business in
      the context of the fast-growing strategy developed in
      recent years.


NRG ENERGY: Moody's Affirms Low B Ratings with Negative Outlook
---------------------------------------------------------------
Moody's Investors Service affirmed the ratings of NRG Energy,
Inc., including its Corporate Family Rating at Ba3, the
Probability of Default Rating at Ba3, the senior unsecured debt
at B1, and its Speculative Grade Liquidity Rating of SGL-2,
following the company's announcement to return more capital to
shareholders in the form of existing and future share
repurchases and to begin paying a common dividend during the
first quarter of 2008.  Moody's also affirmed NRG's Ba1 bank
loan rating for the company's secured revolving credit and term
loan facility, which is being amended and re-priced.  The rating
outlook for NRG remains negative.

Additionally, Moody's has assigned a (P)B2 rating to a planned
US$1 billion delayed draw secured term loan at NRG Holdings,
Inc., a new holding company being formed, which will own the
common stock of NRG.

"While the rating affirmation incorporates our expectation that
the company will be able to generate meaningful free cash for
the next few years, the company's announcement concerning
capital allocation indicates a continuing shift towards
shareholder rewards, at a time when future capital requirements
for the sector and the company have increased and are expected
to remain so for the foreseeable future, " said A.J. Sabatelle,
Vice President -- Senior Credit Officer of Moody's.

The rating affirmation reflects relatively stable cash flows
expected at NRG given the company's competitive position in
several key markets and the degree of forward hedges in place
for the next five years.  NRG's cash flow (CFO pre-W/C) to total
adjusted debt was 13.7% during 2006, which should improve
further during 2007 given a full year benefit of higher cash
flows from the hedge reset program executed by the company in
November 2006.  NRG's expects to generate nearly US$900 million
of free cash flow during 2007.  Given the degree of forward
hedges entered into by the company and the prospects for
continuing relatively high natural gas prices, Moody's expects
that under most reasonable scenarios, the company's cash flow
(CFO pre-W/C) to total adjusted debt is expected to achieve at
least a 13% level over the next several years, which remains
consistent with the existing Ba3 Corporate Family Rating.

The rating affirmation also considers several initiatives
announced by the company designed to return more capital to
shareholders.  These initiatives include the commencement of an
annual common dividend of US$0.50 per share, paid quarterly
beginning in the first quarter 2008, and the continuation of
share repurchase programs after the current authorized share
buyback program is completed.  To help facilitate these
shareholder friendly objectives, NRG's intends to amend and
restate its existing revolving credit and term loan facility and
to form NRG Holdings, which together with a delayed draw US$1
billion term loan will substantially increase capacity under the
restricted payments basket in the company's existing indentures.

Under the planned refinancing, NRG will become a wholly owned
operating subsidiary of NRG Holdings.  NRG Holdings will borrow
up to US$1 billion under a term loan and will downstream the net
proceeds to NRG as an equity contribution.  NRG will use the net
proceeds for the prepayment of a portion of its existing Term B
loan.  Upon completion, the restricted payments capacity under
NRG's bond indentures will increase by an amount equal to the
equity contribution from NRG Holdings to NRG, thereby allowing
NRG to return more capital to shareholders in the future.  Upon
the formation of NRG Holdings, existing NRG common and preferred
shares will be exchanged for identical NRG Holdings level
securities.

The NRG Holdings term loan is being syndicating as a new
US$1 billion delayed draw term loan to NRG's existing secured
revolver and term loan lenders as part of the amendment and
re-pricing request.  Current NRG lenders will be asked to
simultaneously commit to a strip of new NRG Holdings term loans,
which will be funded once the holding company is formed.  Since
certain regulatory approvals are required in order for NRG
Holdings to be formed, NRG does not expect the formation to
occur until the fourth quarter 2007.  The (P)B2 rating assigned
to NRG Holdings' secured term loan incorporates Moody's current
understanding of the proposed refinancing, and reflects the
structural subordination of this creditor class to senior
unsecured and senior secured creditors at NRG.

NRG's negative rating outlook reflects, in Moody's opinion, a
trend by management to steadily implement shareholder friendly
initiatives within the past year.  Since August 2006, NRG has
amended financing documents and has executed financings to
return more capital to the shareholders either by increasing the
restricted payments basket or by structuring financings that
allow capital to flow to shareholders outside of the restricted
payments basket.  Additionally, the negative outlook
incorporates the higher permanent debt levels at NRG incurred in
November 2006 as part of the hedge reset.  While cash margins,
generation values, and hedging opportunities for independent
power companies have all increased within the recent past, the
capital needs of companies in the sector, including NRG, have
also continued to move in an upward direction, particularly for
future environmental related capital expenditures.  With a
higher permanent level of debt embedded in the capital
structure, an increasing shareholder focus by management, and
the cost of future capital investment programs increasing, NRG's
credit quality could weaken, particularly if the company's
future margins compress due to lower natural gas prices, lower
market heat rates, or successful efforts key stakeholders to re-
regulate segments of the sector.

In light of the negative rating outlook as well as the company's
capital investment program, share repurchase plan and other
related initiatives, limited near-term prospects exist for the
rating to be upgraded; however, the rating outlook could
stabilize if the company makes meaningful progress towards using
free cash flow to permanently reduce debt over the next several
years, and/or if the company finances its anticipated large
capital investment program in a relatively conservative manner
resulting in a adjusted cash flow (CFO pre-W/C) to total
adjusted debt rising to the mid-teens level on a sustainable
basis.  Moody's understands that the company's secured credit
facilities will continue to require lenders to accept for
prepayment 50% of any excess cash flow offered by NRG, which
should help to facilitate debt repayment.

The rating could be downgraded if the degree of shareholder
initiatives further accelerates over the next twelve to eighteen
months without meaningful progress towards reducing consolidated
debt or if the company chooses to finance its capital investment
program with higher than anticipated levels of debt.
Additionally, should margins compress across NRG's existing
generation fleet or should additional leverage be incurred to
finance shareholder rewards causing adjusted cash flow (CFO pre-
W/C) to total adjusted debt to fall below 10% for an extended
period, the rating could be downgraded.

Ratings affirmed:

  -- NRG Energy, Inc.

     * Corporate family rating at Ba3;
     * Probability of default rating at Ba3;
     * Speculative Grade Liquidity Rating of SGL-2;

Ratings affirmed/LGD assessments revised;

  -- NRG Energy, Inc.

     * Senior unsecured notes at B1 (LGD 5, 78% from LGD5, 77%);
     * Shelf registration for senior unsecured debt at (P) B1
       (LGD 5, 78% from LGD5, 77%);

Ratings and assessments affirmed:

  -- NRG Energy, Inc.

     * Senior secured revolving credit and term loan facility at
       Ba1 (LGD2, 22%)
     * Preferred stock at B2, LGD 6, 98%;
     * Shelf registration for senior secured debt at (P) Ba1
       (LGD 2, 22%)
     * Shelf registration for subordinated debt at (P)B2, LGD 6,
       97%;
     * Shelf registration for preferred stock at (P)B2, LGD 6,
       98%;

Rating assignment:

  -- NRG Holdings, Inc.

     * Senior secured term loan at (P)B2

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


PETROLEO BRASILEIRO: Petroleos de Venezuela Ends Storage Pact
-------------------------------------------------------------
Petroleos de Venezuela S.A. terminated May 1 an oil storage
accord with Brazil's Petroleos de Brasileiro in Borco terminal
in the Bahamas, Reuters reports.

The same report says Petroleo Brasileiro was given a final
evictin notice to leave the 1.4 million barrels of oil storage
facility.  The storage terminal will be up for sale.

El Universal says the agreement was terminated without cause.

                About Petroleos de Venezuela

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

                  About Petroleo Brasileiro

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

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: Workers Will Hold Strikes Against Firm
-----------------------------------------------------------
Oil workers union Federacao Unica dos Petroleiros said in a
statement that Brazilian state-run oil firm's unionized
employees will launch a series of demonstrations to force
changes to salary and promotion structures.

FUP Communications Manager Jose Maria Rangel explained to
Business News Americas, "We have 24-hour strikes planned for
May 3, May 8 and May 10 at different Petrobras [Petroleo
Brasileiro] units."

BNamericas relates that Petroleo Brasileiro had failed to
finalize promotions and pay hike deal with FUP in 2003.

According to BNamericas, output at Petroleo Brasileiro won't be
affected, as employees will take turns to protest.

Mr. Rangel told BNamericas, "We plan to warn Petrobras not
affect production."

The plants Reduc in Rio de Janeiro, Regap in Minas Gerais, and
36 platforms are on strike on May 3.  Strikes planned for other
units on May 8 and May 10, BNamericas says, citing Mr. Rangel.

A Petroleo Brasileiro spokesperson told BNamericas that the
negotiation process continues.  The company sent on April 27 a
new proposal to FUP.

However, Mr. Rangel commented to BNamericas, "Petrobras'
proposal was unacceptable to FUP workers."

Petroleo Brasileiro had set a new meeting with the workers for
May 4, the spokesperson told BNamericas.

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.


TELEMIG CELULAR: Reports BRL42.6 Mil. First Quarter Net Profits
---------------------------------------------------------------
Telemig Celular Participacoes said in a statement that its net
profits increased 35% to BRL42.6 million in the first quarter
2007, from the first quarter 2006.

Business News Americas relates that Telemig Celular's first
quarter 2007 net revenues grew 24% year-on-year to BRL317
million.  Its Ebitda rose 40% to BRL121 million, while its
Ebitda margin increased to 40.4% from 34.6%.

Telemig Celular told BNamericas that its average revenue per
user in the first quarter 2007 increased 18.4% to BRL27.6 year-
on-year.

Telemig Celular's prepaid subscriber base grew 6.25% to 2.72
million in the first quarter 2007, compared to the first quarter
2006.  Its postpaid clients dropped 7.8% to 779,000.  The firm's
"churn rate" was 29% in the first quarter 2007, a full
percentage point lower than a year before, BNamericas states.

Headquartered in Belo Horizonte, Brazil, Telemig Celular is the
leading provider of mobile communications services in the state
of Minas Gerais, Brazil.  As of Sept. 30, 2006, Telemig had 3.42
million subscribers, with a market share of 33% in its
concession area.

As reported in the Troubled Company Reporter-Latin America on
Jan. 4, 2007, Moody's Investors Service placed under review for
possible downgrade the B2 foreign currency rating of the US$120
million senior unsecured notes units issued by Telemig Celular
SA and Amazonia Celular SA.

Moody's rating action reflected primarily Amazonia's overall
deteriorated credit metrics as a result of weakened operating
margins and increased competitive pressures, as well as Moody's
concerns regarding the company's tightened liquidity position
due to a substantial concentration of debt maturity in the short
term.


TRW AUTOMOTIVE: Credit Suisse Keeps Outperform Rating on Firm
-------------------------------------------------------------
Credit Suisse analysts have maintained their "outperform" rating
on TRW Automotive Holdings Corp.'s shares, Newratings.com
reports.

Newratings.com relates that the target price for TRW
Automotive's shares was increased to US$40 from US$35.

The analysts said in a research note published on May 3 that TRW
Automotive's first quarter 2007 results were strong, with
earnings per share, excluding debt retirement expenses, ahead of
the estimates and the consensus.

The analysts told Newratings.com that the results at TRW
Automotive' underperforming Automotive Components division
improved in the first quarter 2007.

The earnings per share estimate for 2007 was increased to
US$2.37 from US$1.94, while the estimate for 2008 was raised to
US$2.85 from US$2.65, to show lower interest expenses and robust
underlying profit performance, Newratings.com reports.

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

                        *     *     *

Fitch assigned a 'BB' on TRW Automotive Holdings Corp.'s LT
Issuer Default rating and 'BB-' on its Unsecured Debt rating.
Fitch said the outlook is stable.




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


ACORN FUND: Will Hold Final Shareholders Meeting on June 15
-----------------------------------------------------------
Acorn Fund Limited will hold its final shareholders meeting on
June 15, 2007, at 10:00 a.m., at:

         4th Floor Harbour Place
         George Town, Grand Cayman
         Cayman Islands

These matters 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) authorizing the liquidator to retain the company's
      records for a period of six years from its dissolution,
      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:

         Linburgh Martin
         Attention: Thiry Gordon
         Close Brothers (Cayman) Limited
         Fourth Floor, Harbour Place
         P.O. Box 1034
         Grand Cayman KY1-1102
         Telephone: (345) 949 8455
         Fax: (345) 949 8499


CITIGROUP SERVICES: Sets Final Shareholders Meeting for July 12
---------------------------------------------------------------
Citigroup Services (Japan) Ltd. will hold its final shareholders
meeting on July 12, 2007, at:

         Queensgate House, George Town
         Grand Cayman, Cayman Islands

These matters will be discussed 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


ICGE SAILS: Will Hold Final Shareholders Meeting on July 12
-----------------------------------------------------------
Icge Sails Corp. V will hold its final shareholders meeting on
July 12, 2007, at:

         Queensgate House, George Town
         Grand Cayman, Cayman Islands

These matters will be discussed 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:

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




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


BOSTON SCIENTIFIC: COO Says Company Mulls Sale of Noncore Assets
----------------------------------------------------------------
Boston Scientific Corp. is reviewing its portfolio and will
consider selling parts that are not considered strategic, long-
term contributors, Jon Kamp at The Wall Street Journal reports,
citing the company's Chief Operating Officer Paul LaViolette as
saying.

According to WSJ, Mr. LaViolette further stated that the company
is also undertaking a corporate-wide efficiency improvement
program, with estimated savings to be in the "hundreds of
millions of dollars" range.

"Anything we do would be to improve operating effectiveness,"
the Journal quoted Mr. LaViolette as saying during a health-care
conference.

Headquartered in Natick, Massachusetts, Boston Scientific
Corporation (NYSE: BSX) -- http://www.bostonscientific.com/--
is a worldwide developer, manufacturer and marketer of medical
devices whose products are used in a broad range of
interventional medical specialties.  It has Latin America
operations in Argentina and Chile.

                        *     *     *

As reported in the Troubled Company Reporter on Feb. 6, 2007,
Moody's Investors Service affirmed Boston Scientific
Corporation's Ba1 subordinated shelf rating and Ba2 preferred
stock rating with a negative outlook.


BOSTON SCIENTIFIC: Names Sam Leno as Chief Financial Officer
------------------------------------------------------------
Boston Scientific Corporation disclosed that Sam Leno will join
the company as Chief Financial Officer and Executive Vice
President of Finance and Information Systems.

Mr. Leno is currently CFO and Executive Vice President of
Finance and Corporate Services for Zimmer Holdings, Inc.  He has
also served as CFO and Senior Vice President of Arrow
Electronics, Inc., and CFO and Executive Vice President of
Corporate Express.  From 1971 to 1994 he served in a number of
finance, accounting and leadership positions for Baxter
International, Inc./American Hospital Supply Corp.  During his
tenure at Baxter he worked closely with Boston Scientific
President and Chief Executive Officer Jim Tobin, who then served
as the Chief Operating Officer of Baxter.

"I have known Sam for more than 20 years, and he brings a
substantial body of knowledge, expertise and experience to his
new role," said Mr. Tobin.  "He has worked in large, diversified
companies, including two of the world's leading health care
technology companies.  He is exceptionally well qualified to
serve as our new CFO, and I am looking forward to working with
him again."

"I would like to welcome Sam, who is a seasoned business
executive with a wealth of experience in the health care
industry, including experience with acquisition integration,
financing and capital markets," said Pete Nicholas, Chairman and
Co-founder of Boston Scientific.  "He has a broad range of
talents and abilities that will allow him to begin contributing
immediately. We are very fortunate to have Sam joining us."

"I am very excited to be joining Boston Scientific," said Leno.
"Like Zimmer, it is an amazing company with a terrific
management team. With the relatively recent acquisition of
Guidant, I am honored to have the opportunity to participate in
executing Pete's and Jim's strategic vision for the company.  I
also had the opportunity to work directly for Jim Tobin during
part of my career at Baxter, and I am very pleased to be able to
work for him again.  My years of experience in health care --
and more importantly medical devices -- should also assist in
creating an efficient and smooth transition into the company."

Mr. Leno will replace Larry Best, Boston Scientific's long-time
CFO, who plans to retire from the Company to pursue an interest
in private investing within the life sciences field.  Mr. Leno
will join the Company June 5; Mr. Best will retire effective
July 6.

"I am extremely proud to have been a part of the strategic build
of Boston Scientific over the past 15 years," said Best.
"Through the enormous efforts of a truly outstanding team, a
global leader in medical devices has been built.  I thank
everyone who has contributed to this success."

"Larry has been an integral part of Boston Scientific," said
Tobin.  "His many accomplishments have shaped our company and
have helped make it the organization it is today.  He has been
instrumental to our growth strategy, particularly the historic
and transforming acquisition of Guidant, which I believe has
been our most important and beneficial transaction.  I want to
thank him for his numerous contributions, and for his dedication
and commitment to our employees, customers and shareholders.  I
wish Larry continued success and much happiness."

"From the beginning, Larry shared my vision of a global
enterprise devoted to delivering the most innovative medical
technologies to physicians and their patients," said Mr.
Nicholas.  "He was an essential partner in the creation of
today's Boston Scientific, one of the world's largest medical
device companies.  For more than a decade, he was a key
architect of a bold and creative acquisition strategy. With the
Guidant transaction -- our most recent and largest acquisition
-- we are well positioned for future growth. Nobody has worked
harder -- or cared more about Boston Scientific - than Larry.
He has been a valued colleague and a good friend, and I want to
thank him personally for everything he has done for Boston
Scientific, and I want to wish him all the best."

                  About Boston Scientific

Headquartered in Natick, Massachusetts, Boston Scientific
Corporation (NYSE: BSX) -- http://www.bostonscientific.com/--
is a worldwide developer, manufacturer and marketer of medical
devices whose products are used in a broad range of
interventional medical specialties.  It has Latin America
operations in Argentina and Chile.

                        *     *     *

As reported in the Troubled Company Reporter on Feb. 6, 2007,
Moody's Investors Service affirmed Boston Scientific
Corporation's Ba1 subordinated shelf rating and Ba2 preferred
stock rating with a negative outlook.


SCOTIABANK SUD: Moody's Ups Fin'l Strength Rating to D+ from D
--------------------------------------------------------------
Moody's Investors Service has confirmed that it raised its bank
financial strength rating on Scotiabank Sud Americano to D+ from
D, in connection with the rating agency's implementation of its
refined joint default analysis and updated BFSR methodologies
for banks in Chile.

The company's A2 Local Currency Senior and A3 Subordinated Debt
Ratings are affirmed, based on both the assumed moderate
probability of support from its parent, Bank of Nova Scotia, and
a moderate probability of support from the Chilean authorities.
Its Long Term Foreign Currency Deposit Rating is affirmed at A2
at the Chile country ceiling for deposits and its Foreign
Currency Subordinated Debt Rating is also affirmed at A3, and
remains in line with its local currency equivalent.

The updated BFSR methodology has benefited the BFSRs of two of
the largest banks and one medium sized bank that Moody's rates
in Chile (Banco de Chile, Banco de Credito e Inversiones, and
Scotiabank Sud Americano).  Relatively strong financial
fundamentals combined with a relatively stable operating and
regulatory environment have been the main drivers of the BFSR
upgrades of each of these banks.

Moody's assigned support levels to banks in Chile using its high
country support guideline and Aaa local currency deposit
ceiling.  This guideline takes into consideration the historic
evidence of support for banks in addition to the size, strength,
and the degree of fragmentation of the Chilean banking system.

The subordinated foreign currency debt rating of Scotiabank Sud
Americano, was affirmed at A3; the rating incorporates a
moderate probability of support from both the bank's parent and
the system.

BFSRs evaluate the stand-alone or intrinsic financial strength
of banks without reference to external support factors.  BFSRs
are the starting point of Moody's bank credit analysis, and are
an important determinant of Moody's bank deposit and debt
ratings.

Moody's then uses its JDA methodology to incorporate the
potential for external support into a bank's local currency
deposit rating.  The potential for external support can reduce
the riskiness of a bank's deposit and debt obligations; however,
such support is often uncertain.

Moody's uses conservative support assumptions and a limited
number of support levels to ensure that sufficient weight is
given to a bank's intrinsic financial strength in its bank
deposit and debt ratings.

Moody's uses deposit ratings to determine bank debt ratings
based on its notching guidelines for bank securities.  Ratings
for foreign currency obligations are determined after
considering Moody's country ceilings for foreign currency
ratings.




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


BRIGHTPOINT: Earns US$35.6 Million in Year Ended Dec. 31, 2006
--------------------------------------------------------------
Brightpoint Inc. reported net income of US$35.6 million for the
year ended Dec. 31, 2006, compared with net income of US$10.4
million for the year ended Dec. 31, 2005.  Results of operations
for 2005 included a loss from discontinued operations of US$21.5
million relating primarily to Brightpoint France, which was sold
on Dec. 16, 2005.

Total revenue was US$2.4 billion for the year ended
Dec. 31, 2006, which represents growth of 13% compared to total
revenue of US$2.1 billion for the year ended Dec. 31, 2005.

Operating income from continuing operations increased to
US$48.4 million in 2006 from US$44.4 million in 2005.  The
increase in operating income was due to an US$18.9 million
increase in gross profit, partly offset by a US$15.8 million
increase in selling, general and administrative expenses.
Operating income also improved due to the US$900,000 facility
consolidation charge during 2005 that did not recur during 2006.

Cash and cash equivalents were US$54.1 million at Dec. 31, 2006,
a decrease of US$49.5 million from Sept. 30, 2006.  Liquidity
(unrestricted cash and unused borrowing availability) was
approximately US$129.8 million as of Dec. 31, 2006, compared to
US$202 million as of Sept. 30, 2006.

At Dec. 31, 2006, the company's balance sheet showed
US$778.3 million in total assets, US$583.5 million in total
liabilities, and US$194.8 million in total shareholders' equity.

Full-text copies of the company's consolidated financial
statements for the year ended Dec. 31, 2006, are available for
free at http://researcharchives.com/t/s?1e5d

                      About Brightpoint

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

                        *     *     *

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


* COLOMBIA: U.S. President Urges Congress to Ratify FTA
-------------------------------------------------------
Colombian President Alvaro Uribe gets full support from his U.S.
counterpart, George W. Bush, in promoting a free trade deal
between the two nations.

The Colombian leader is in the United States for a three-day
visit aimed at courting the U.S. Congress to ratify a free trade
agreement signed between the Bush and Uribe administrations.

As previously reported, the two countries
free trade pact, unpopular on both sides, may not get U.S.
Congressional approval on account of media coverage of para-
politics in Colombia that involves the president's family
members.

The U.S. Congress has unveiled a list of demands
that includes everything from combating global warming to
appointing a U.S. "trade enforcer" targeting nations believed to
be trading unfairly with the United States.  These include
allowing workers to form trade unions and barring child labor.

According to BBC News, the trade deal is essential to counter
drug trafficking in the South American nation.

BBC News relates that many in Congress oppose the trade deal out
of concern for potential U.S. job losses and Colombia's poor
record of protecting union leaders.  They are also against the
military focus of the anti-narcotics program, Plan Colombia,
that has cost U.S. taxpayers billions of dollars since 2000.

                        *     *     *

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.




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


BANCO INTERCONTINENTAL: Officials Allegedly Erase Loan Figures
--------------------------------------------------------------
Dominican Today reports that Zunilda Paniagua, the coordinator
of Banco Intercontinental's Liquidation Commission, has
reaffirmed that the bank's officials erased values of loans from
accounts and placed them in a special account called Financial
Empresarial where the indebted ones didn't appear and where the
bank is shown as the one indebted.

Dominican Today relates that Juan Antonio Delgado, Banco
Intercontinental's former vice president Marcos Baez Cocco's
legal representative, cross-examined Ms. Paniagua, asking her
how the authorities could determine who were responsible for
those debts if these were erased.

"It was possible to determine because they were confidential
memorando that instructed to erase the amounts," Dominican Today
notes, citing Ms. Paniagua.

Dominican Today says that most of the confidential memorandums
entered as evidence in the Banco Intercontinental fraud case
have Mr. Cocco's signature.  Mr. Delgado asked Ms. Paniagua on
what date Mr. Cocco signed the documents.

Mr. Cocco signed the documents on Jan. 22, 2003, about 45 days
before Banco Intercontinental's collapse was reported, Dominican
Today states, citing Ms. Paniagua.

Mr. Cocco's legal representative can be reached at:

          Juan Antonio Delgado
          Calle Jose Almando Soler
          Santo Domingo, Dominican Republic

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.




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


PETROECUADOR: Unit's Output Drops Due to Installation Attacks
-------------------------------------------------------------
Ecuadorian state-owned oil firm Petroecuador said in a statement
that the 17 attacks at its unit Petroproduccion's installations
have resulted to production losses of 21,700 barrels of crude
through April.

Business News Americas relates that the attacks include the
cutting and removal of secondary oil pipelines and electrical
cables.

According to BNamericas, Petroproduccion was forced to spend
US$527,505 to continue production.

BNamericas notes that the most recent attacks were on April 29
and May 1, which shut down production at eight wells, causing
Petroproduccion to lose 2,500 barrels in crude output.

The attackers removed a part of the secondary Sucumbios-Lago
Agrio pipeline on May 1, causing an oil spill.  The extent of
the spill hasn't yet been determined.  Petroproduccion admitted
that it affected the environment, but assured that workers are
acting to contain it and clean up the zone, BNamericas states.

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


PETROECUADOR: Unit Starts Production in First Block 15 Well
-----------------------------------------------------------
A spokesperson of UB-15, Ecuadorian state-owned oil firm's
temporary administration unit operating block 15, told Business
News Americas that the unit has started production in the first
well it drilled on the block.

Business News Americas relates that the spokesperson said the
Limoncocha 2A well on the Limoncocha field is producing at an
average of 2,500 barrels per day.

According to BNamericas, the drilling works were conducted with
the Sinopec 128 rig.  The works started in March and were
completed in April.

The spokesperson told BNamericas that output was 100,000 barrels
per day when Petroecuador took the field from US firm Occidental
Petroleum, but has since dropped to an average of 83,500 barrels
per day.  Petroecuador still aims to reach a 100,000-barrel per
day production level by the end of 2007.

The spokesperson said that UB-15 has also concluded drilling two
wells on the Eden Yuturi field, BNamericas notes.  The J62 well
was drilled with a CPEB rig, while the F61 well was done by the
Sinopec 129 rig.  The report says that the two wells are in the
completion phase and are expected to start production in the
middle of this month.  UB-15 wants to reach output levels of
105,000 barrels per day in 2008 and 110,000 barrels per day in
2009.

UB-15 said in a statement that it has secured certifications:

          -- ISO 14001: 2004 for its environmental management
             system, and

          -- OHSAS 18001: 1999 for its occupational health and
             safety management system.

The Mexican branch of Oslo-based firm Det Norske Veritas granted
the certifications to UB-15.  They are valid for three years and
are subject to a yearly audit, BNamericas states.

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




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


ALL AMERICAN: Bankruptcy Court Approves First Day Motions
---------------------------------------------------------
All American Semiconductor, Inc., disclosed the approval of its
first day motions by the U.S. Bankruptcy Court for the Southern
District of Florida, Miami Division.  The company received
approval of first day motions seeking relief to enable the
company to continue operations during the Chapter 11 process,
including debtor-in-possession financing from its existing bank
group, and the payment of prepetition, employee-related and
certain customer obligations.

In addition, All American received Bankruptcy Court approval of
bidding procedures for an auction sale of its businesses as a
going concern to be completed no later than June 8, 2007.

The Court approved interim DIP financing of up to $13 million,
which is expected to provide the company with sufficient
liquidity to continue operations during the Chapter 11 case and
is based on a budget agreed upon with the bank group.  The final
hearing on DIP financing is scheduled to be held on
May 17, 2007.

"We are pleased with this outcome," Bruce Goldberg, President
and CEO of All American, said.  "The Court's approval of our
motions allows All American to continue as a going concern as we
work towards an auction sale of the business."

The approved sale process provides for interested purchasers to
complete due diligence and submit binding bids by May 28, 2007,
with the auction scheduled for May 31 at the Miami offices of
the company's counsel, Squire, Sanders & Dempsey, L.L.P.  The
hearing to approve a sale to the highest bidder at the auction
is scheduled for June 5, 2007, with the sale closing no later
than June 8.

Prior to the company's bankruptcy filing on April 25, 2007, it
signed a nonbinding letter of intent with a potential purchaser
of substantially all of the company's and its subsidiaries'
assets.  The company advised the Bankruptcy Court that it is
actively negotiating a binding purchase agreement with this
party to become the stalking horse for the sale.  In the event
such an agreement is reached, specific stalking horse
protections, including a breakup fee, will be subject to the
approval of the DIP lenders and the Bankruptcy Court. In
addition, a sale to the highest bidder at the auction will also
require the approval of the Bankruptcy Court.

The Chapter 11 filing included the company's 33 subsidiaries in
the United States, Canada, Mexico, Europe and Asia.  All
American determined to file for relief under Chapter 11 after
extensively exploring and carefully evaluating all of its
options.  All American believes that the Chapter 11 process
provides the best alternative for maximizing the value of the
company for the benefit of its stakeholders including suppliers,
customers and employees.

              About All American Semiconductor

Headquartered in Miami, Florida, All American Semiconductor Inc.
(Pink Sheets: SEMI.PK) -- http://www.allamerican.com/-- is a
distributor of electronic components manufactured by others.
The company distributes a full range of semiconductors including
transistors, diodes, memory devices, microprocessors,
microcontrollers, other integrated circuits, active matrix
displays and various board-level products.  All American also
distributes passive components such as capacitors, resistors and
inductors; and electromechanical products such as power
supplies, cable, switches, connectors, filters and sockets.  The
company also offers complete solutions for flat panel display
products.  In total, the company offers approximately 40,000
products produced by approximately 60 manufacturers.  The
company has 36 strategic locations throughout North America and
Mexico, as well as operations in both Asia and Europe.

The company and its debtor-affiliates filed for Chapter 11
protection on April 25, 2007 (Bankr. S.D. Fla. Lead Case No.
07-12963).  Tina M. Talarchyk, Esq., at Squire Sanders & Dempsey
LLP, in West Palm Beach, Florida, represents the Debtors.  As of
Feb. 28, 2007, total assets was US$117,634,000 and total debts
was US$106,024,000.


DELTA AIR: Prudential Financial Puts Underweight Rating on Firm
---------------------------------------------------------------
Prudential Financial analyst Bob McAdoo has assigned an
"underweight" rating on Delta Air Lines Inc.'s shares,
Newratings.com reports.

According to Newratings.com, the target price for Delta Air's
shares is set at US$14.

Mr. McAdoo said in a research note published on May 3 that Delta
Air is "exiting bankruptcy, with reduced costs and network
realigned to boost profitability."

However, Delta Air's share price seems unsustainable, compared
to the share prices of other firms, Newratings.com states.

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

                        *     *     *

Delta disclosed in an April 30, 2007 regulatory filing with the
Securities and Exchange Commission that it has emerged from
Chapter 11 following a successful and efficient 19-month
restructuring.  Among its restructuring accomplishments, Delta
pointed out that the company completed a comprehensive
transformation plan one year ahead of schedule, delivering US$3
billion in annual financial improvements.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
May 3, 2007, Standard & Poor's Ratings Services raised its
ratings on the class A-1 and A-2 certificates from the US$27
million Corporate Backed Trust Certificates Series 2001-19 Trust
to 'B' from 'D'.


EMPRESAS ICA: Net Profits Decrease to MXN24MM in First Quarter
--------------------------------------------------------------
Empresas ICA said in a statement that its consolidated net
profits dropped 83.9% to MXN24 million in the first quarter
2007, compared to MXN149 million in the first quarter 2006.

According to Empresa ICA's statement, the company's revenues
decreased 3.4% to MXN4.71 billion in the first quarter 2007,
from MXN4.88 billion in the same quarter in 2006.  Ebitda
dropped 34% to MXN442 million.

Business News Americas relates that Empresa ICA's costs dropped
2.2% to MXN4.03 million in the first quarter 2007, compared to
MXN4.12 billion in the first quarter 2006.  The firm's debt also
fell 16.6% to MXN10.4 billion, from MXN12.5 billion.

Empresas ICA Chief Executive Officer Jose Luis Guerrero said in
a conference call, "In general terms, the first quarter revenue
dynamic is what we expected at the beginning of a new federal
administration."

Mr. Guerrero told BNamericas that Empresas ICA sees that 2007
revenues will remain the same as 2006, at around MXN22 billion.
While there has been a deficit in new contracts for civil and
industrial construction works, the company expects that this
will be counterbalanced by continued strong growth in housing,
airports and other infrastructure concessions.  Net result is
zero growth in real terms.

The CEO said that the critical variable in Empresas ICA's
outlook is the pace at which the Mexican government begins
making calls for bids and award contracts, particularly for the
large-scale civil construction projects, BNamericas notes.
Several of the projects will be awarded in the second and third
quarters.  More than US$25 billion contracts will be auctioned
over the next 12-18 months.

Empresas ICA said in a statement that its infrastructure
revenues increased 15.0% year-on-year to MXN574 million.
Airport revenues grew 9.4% to MXN436 million.  Concession
revenues increased 34.0% to MXN138 million.  Meanwhile,
passenger traffic at the airports grew 14.4% to MXN3.36 million
passengers.

Mr. Guerrero commented to BNamericas that airport revenues would
increase 10% in 2007.

BNamericas notes that Empresas ICA took on credit to fund its
purchase of shares in central and northern airport operator
GACN, which was consolidated into the firm's financial results.

Empresas ICA said in a statement that traffic on its concession
for the Corredor Sur highway increased 32.6% to 69,900 vehicles
daily in the first quarter 2007, compared to the first quarter
2006.  Revenue from this concession grew 35% to MXN11 million.
Traffic on the company's Acapulco tunnel rose 8.0% to 9,400
vehicles per day, and revenues there rose 10% to MXN31 million.

Mr. Guerrero commented to BNamericas that Empresas ICA's
Irapuato-La Piedad highway Point-to-Point Protocol modernization
work is almost operational.  It would begin generating revenue
during the second quarter.  Meanwhile, the Queretaro-Irapuato
highway PPP modernization work has started to move forward, and
the company is in the final stages of closing funding for the
project.

Empresas ICA's statement says that the Irapuato-La Piedad
investment totaled MXN539 million in the first quarter 2007,
while the Queretaro-Irapuato PPP investment totaled MXN75
million.

Mr. Guerrero said in the conference call that Empresas ICA
expects continued strong traffic growth this year as well as an
over 50% boost in concessions.

Empresas ICA's operating margins would grow to 7.0% in 2007,
compared to 5.8% in 2006.  The firm's Ebitda margins would
increase to 10.0% from 9.5%, Mr. Guerrero told BNamericas.

Empresas ICA -- http://www.ica.com.mx/-- the largest
engineering, construction, and procurement company in Mexico,
was founded in 1947.  ICA has completed construction and
engineering projects in 21 countries.  ICA's principal business
units include civil construction and industrial construction.

Through its subsidiaries, ICA also develops housing, manages
airports, and operates tunnels, highways, and municipal services
under government concession contracts and/or partial sale of
long-term contract rights.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Aug. 23, 2006, Standard & Poor's Ratings Services revised its
long-term corporate credit rating on Empresas ICA S.A. de C.V.
to 'BB-' from 'B'.  The ratings were removed from CreditWatch
Positive, where they were placed on April 7, 2006.  S&P said the
outlook is stable.


EPICOR SOFTWARE: Prices US$200 Mil. of 2.375% Sr. Notes Offering
----------------------------------------------------------------
Epicor Software Corporation has priced its previously announced
offering of US$200 million aggregate principal amount of 2.375%
convertible senior notes due 2027.  As part of the offering, the
company has granted the underwriters a 30-day option to purchase
up to an additional US$30 million aggregate principal amount of
the notes solely to cover overallotments, if any.  Assuming the
repayment of its outstanding term loan, Epicor expects the
offering to be accretive to its fiscal 2007 earnings per diluted
share.

The notes will pay interest semiannually at a rate of 2.375% per
annum until May 15, 2027.  The notes will be convertible, under
certain circumstances, into cash or, at the Company's option,
cash and shares of the company's common stock, at an initial
conversion rate of 55.2608 shares of common stock per US$1,000
principal amount of notes, which is equivalent to an initial
conversion price of approximately US$18.10 per share.  The
initial conversion price represents a 30% premium over the last
reported sale price of the company's common stock on
May 2, 2007, which was US$13.92 per share.  The notes priced on
May 2, 2007.

Epicor estimates that the net proceeds from this offering will
be approximately US$193.2 million after deducting the
underwriters' discounts and commissions and estimated offering
expenses (or approximately US$222.3 million if the underwriters'
over-allotment option is exercised in full).  The offering is
expected to close on May 8, 2007, subject to customary closing
conditions.

Epicor intends to use the net proceeds from the offering to
repay in full the company's term loan outstanding under its
credit facility.  The balance of the net proceeds will be used
for working capital, capital expenditures and other general
corporate purposes, which may include funding acquisitions of
businesses, technologies or product lines, although Epicor
currently has no commitments or agreements for any such specific
acquisition.  Epicor may also use a portion of the remaining net
proceeds to repurchase outstanding shares of its common stock.

UBS Investment Bank and Lehman Brothers acted as joint book-
running managers for the offering.  Cowen and Company, Needham &
Company, and Piper Jaffray served as co-managers for the
offering.

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

          UBS Securities LLC
          Attn: Prospectus Department
          299 Park Avenue
          New York, NY, 10171,
          Tel: (212) 821-3000

             -- or --

          Lehman Brothers
          c/o Broadridge
          1155 Long Island Avenue
          Edgewood, NY 11717
          Fax: (631) 254-7268

Headquartered in Irvine, California, Epicor Software Corp.
-- http://www.epicor.com/www/-- is a provider of enterprise
resource planning, customer relationship management, and supply
chain management software and solutions to mid-market companies
worldwide.  Epicor Software has worldwide locations in
Australia, Canada, China, Germany, Hong Kong, Indonesia, Italy,
Japan, Korea, Malaysia, Mexico, Singapore, Taiwan, and the
United Kingdom, among others.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
April 23, 2007, Standard & Poor's Rating Services raised its
corporate credit rating on Irvine, California-based Epicor
Software Corp., to 'BB-' from 'B+'.  The outlook is stable.  The
action reflects successful integration of the CRS Retail
acquisition, continued cash flow generation, and substantially
reduced leverage to about 1.8x in 2006, from 2.9x in 2005.


FORD MOTOR: Navistar Files US$2 Billion Counter Claim
-----------------------------------------------------
Navistar International Corp. has filed an amended complaint
against Ford Motor Co. seeking more than US$2 billion in
damages, Reuters reports.

According to the source, the Navistar's amended complaint
stemmed from hints that Ford was planning to develop its own
diesel engine for release prior to 2012.

Navistar, through its International Truck and Engine Corp.
operating company, has been the exclusive diesel engine supplier
for Ford's Super Duty pickup trucks since 1979 and had launched
a new 6.4L Power Stroke(R) for Ford's new Super Duty.

                   Diesel Engine Litigation

In a filing with the U.S. Securities and Exchange Commission,
Ford disclosed that on January 2007, it filed a suit against the
company seeking, among other things, reimbursement for warranty
and related costs involving prior model-year diesel engines
supplied by International Truck.

On Feb. 26, 2006, the Navistar suspended production claiming
that Ford stopped honoring the terms under which the engines
were built.  Ford sought a temporary restraining order from
Judge John J. McDonald of the Circuit Court of Oakland County,
Michigan.

Judge McDonald issued an order on Feb. 28 that required
International Truck to resume production and Ford to pay with no
withholding until a hearing was held.

Navistar entered into a consent injunction with Ford which
Navistar's operating company will continue shipping 6.4L Power
Stroke(R) diesel engines and Ford will pay, without deductions,
for each engine.

              About Navistar International Corp.

Based in Warrenville, Illinois, Navistar International Corp.
(NYSE:NAV) -- http://www.nav-international.com/-- is the parent
company of Navistar Financial Corp. and International Truck and
Engine Corp.  The company produces International brand
commercial trucks, mid-range diesel engines and IC brand school
buses, Workhorse brand chassis for motor homes and step vans,
and is a private label designer and manufacturer of diesel
engines for the pickup truck, van and SUV market.  The company
also provides truck and diesel engine parts and service sold
under the International brand.  A wholly owned subsidiary offers
financing services.

                    About Ford Motor Co.

Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures or distributes automobiles
in 200 markets across six continents.  With about 260,000
employees and about 100 plants worldwide, the company's core and
affiliated automotive brands include Ford, Jaguar, Land Rover,
Lincoln, Mercury, Volvo, Aston Martin, and Mazda.  The company
provides financial services through Ford Motor Credit Company.

                        *     *     *

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 US$3 billion of senior convertible notes
due 2036.


FORD MOTOR: April U.S. Sales Decreased 13%, to 228,623
------------------------------------------------------
Ford Motor Co. disclosed in a regulatory filing with the
Securities and Exchange Commission that the company's April U.S.
sales totaled 228,623, down 13% compared with a year ago.

"With April behind us, we remain focused on getting the word out
about the strength of our new products, and our marketing
offensive is moving into high gear," said Mark Fields, Ford's
President of The Americas.  "Customers are responding very
positively to our new 'Ford Challenge' ads that pit Ford
vehicles against the best of the competition, so we're
accelerating our plans."

Currently, Ford said it began airing two new F-Series truck ads
starring Mike Rowe, creator and star of the Discovery Channel's
hit show "Dirty Jobs."  The ads demonstrate the clear advantages
of Ford Tough trucks in safety, strength and capability.

Ford's internal data show that the Ford Challenge campaign has
generated a strong response in product favorability, purchase
consideration and sales.  Following the start of the successful
"Fusion Challenge" ads in January, the Ford Fusion posted
double-digit sales increases throughout the first quarter.

              Strong Crossover Growth Continues

Although April sales for most products were lower than a year
ago, new crossover utilities helped Ford increase its share of
the industry's fastest growing category.  Ford Edge sales were
9,134, and Lincoln MKX sales were 2,901.  In addition, Land
Rover introduced its first crossover utility, the LR2, and first
month sales were 1,302.  Total Ford Motor Company crossover
sales were 28 percent higher than a year ago during April.

"The success of our newest products - Ford Fusion, Edge, Lincoln
MKX, Ford Super Duty and Ford Expedition - gives us
encouragement that we're creating the products our customers
really want, and we're beginning to stabilize our retail market
share," Fields said.

"Three years ago, 70 percent of new Ford Motor Company vehicles
sold in the U.S. were trucks and traditional SUVs. Today, the
balance is nearly 50 percent cars and crossovers, and 50 percent
trucks and SUVs," Fields explained.  "We will continue to
introduce new crossovers and even more small cars in the U.S.,
as they represent the consumer growth segments going forward."

                     About Ford Motor Co.

Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures or distributes automobiles
in 200 markets across six continents.  With about 260,000
employees and about 100 plants worldwide, the company's core
and affiliated automotive brands include Ford, Jaguar, Land
Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda.  The
company provides financial services through Ford Motor Credit
Company.

                        *     *     *

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 US$3 billion of senior convertible notes
due 2036.


GENERAL MOTORS: April Sales Down 2.2%; Rental Sales Down 36%
------------------------------------------------------------
General Motors Corporation reported that GM dealers in the
United States delivered 311,687 vehicles in April, a reduction
of 2.2% on a sales-day-adjusted basis.  GM's April retail sales
of 228,465 were up 3.6%, on a sales-day-adjusted basis.  There
were two fewer selling days in April this year.

Fifteen different models showed a retail sales increase,
reflecting the continuing strength of GM's new product
portfolio.  So far this year, daily rental sales of 13% of total
sales accounted for the lowest percentage of total sales in five
years.  Daily rental sales were down 23,178 vehicles in April,
or 36% on a sales-day-adjusted basis, compared with a year ago
as mix and quality of share continued to improve significantly.
Consistent with its turnaround strategy, GM has reduced daily
rental sales by more than 83,000 vehicles in the first four
months of 2007.

"April sales were consistent with the pattern of the last few
quarters -- retail sales up, daily rental down, and continued
strength of our launch vehicles," said Mark LaNeve, vice
president, GM North American Sales, Service and Marketing.  "We
are particularly pleased with the Silverado and Sierra pickups,
and from January to March this year we've seen more than a four
point full-size pickup market share increase at the expense of
Toyota, Ford and DCX.  Pickup truck customers are telling us in
today's environment they are shopping for value, fuel economy
and warranty.  GM wins on all three."

Chevrolet Aveo, Impala, Silverado, Suburban, and Avalanche;
Pontiac G6; Saturn Sky and VUE; GMC Sierra, Yukon XL and Canyon;
Cadillac CTS, SRX, Escalade ESV and Escalade EXT all had April
retail sales increases compared with a year ago on a sales-day-
adjusted basis.  Pontiac G5, Saturn Aura and Outlook and the GMC
Acadia are newly-offered products and continue to contribute
retail sales momentum.  The GMC Acadia and Saturn Outlook had
retail sales of more than 9,100 vehicles, pushing a significant
retail increase in GM's mid-crossover segment.

GM's total sales of more than 11,000 vehicles in this segment
pushed monthly performance up 184%, on a sales-day-adjusted
basis, compared with the same month last year.

Total sales of Saturn vehicles were up 29 percent, GMC was up 17
percent and Cadillac was up 2% in April on a sales-day-adjusted
basis.

"As we continue to execute our North American marketing plans,
we've seen positive results, including increased residual values
for our products.  For customers, this means better resale
values for their GM car or truck," LaNeve added.  "With new
products such as the Buick Enclave, Cadillac CTS and Chevrolet
Malibu still to come this year, we expect to build on this
customer enthusiasm."

                     Certified Used Vehicles

April 2007 sales for all certified GM brands, including GM
Certified Used Vehicles, Cadillac Certified Pre-Owned Vehicles,
Saturn Certified Pre-Owned Vehicles, Saab Certified Pre-Owned
Vehicles, and HUMMER Certified Pre-Owned Vehicles, were 41,622
units, down 11 percent from last April.  Total year-to-date
certified GM sales are 181,473 units, up 3% from the same period
last year.

GM Certified Used Vehicles, the industry's top-selling
manufacturer-certified used brand, posted 36,625 sales, down
nearly 10% from last April.  Year-to-date sales for GM Certified
Used Vehicles are 159,409 units, up 4% from the same period in
2006.

Cadillac Certified Pre-Owned Vehicles posted April sales of
2,800 units, down 22% from last April.  Saturn Certified Pre-
Owned Vehicles sold 1,478 units in April, down 17%. Saab
Certified Pre-Owned Vehicles sold 639 units, down 10% from last
April, and HUMMER Certified Pre-Owned Vehicles sold 80 units,
down 30%.

"GM Certified Used Vehicles, the industry's top-selling
certified brand, continues to set the pace for the category,
with sales through April up more than 4 percent," said Mr.
LaNeve.  "April sales were impacted by having two less sales
days than last year.  Certified GM sales year-to-date are up
over 3 percent from the same period last year."

GM North America Reports April Production, 2007 Second-Quarter
Production Forecast is Revised at 1.145 Million Vehicles

In April, GM North America produced 335,000 vehicles (120,000
cars and 215,000 trucks).  This is down 17,000 units or 5%
compared to April 2006 when the region produced 352,000 vehicles
(130,000 cars and 222,000 trucks).  (Production totals include
joint venture production of 15,000 vehicles in April 2007 and
24,000 vehicles in April 2006.)

Additionally, the region's 2007 second-quarter production
forecast is revised at 1.145 million vehicles (403,000 cars and
742,000 trucks), down 15,000 units or 1.3% from last month's
guidance.

GM also announced final 2007 first-quarter and unchanged 2007
second-quarter production forecast for its international
regions.

GM Europe - GM Europe produced 511,000 vehicles in the first-
quarter of 2007.  In the first-quarter of 2006 the region built
494,000 vehicles.  The region's 2007 second-quarter production
forecast remains unchanged at 473,000 vehicles.  In the second-
quarter of 2006 the region built 495,000 vehicles.

GM Asia Pacific - The region built 544,000 vehicles in the
first-quarter of 2007.  In the first-quarter of 2006 the region
produced 472,000 vehicles.  GM Asia Pacific's 2007 second-
quarter production forecast remains unchanged at 568,000
vehicles.  In the second-quarter of 2006 the region built
482,000 vehicles.

GM Latin America, Africa and the Middle East - The region built
222,000 vehicles in the first quarter of 2007.  In the first
quarter of 2006 the region produced 194,000 vehicles.  The
region's 2007 second-quarter production forecast is unchanged at
233,000 vehicles.  In the second quarter of 2006 the region
built 206,000 vehicles.

                 About General Motors Corp.

General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- is the
world's largest automaker and has been the global industry sales
leader for 76 years.  GM currently employs about 280,000 people
around the world.  GM manufactures its cars and trucks in 33
countries.  In 2006, nearly 9.1 million GM cars and trucks were
sold globally 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.


GENERAL MOTORS: Earns US$62 Million in Quarter Ended March 31
-------------------------------------------------------------
General Motors Corp. reported net income of US$62 million,
including special items, in the first quarter ended
March 31, 2007, compared with net income of US$602 million, in
the year-ago quarter.  Results are preliminary and may be
revised prior to actual filing of GM's first quarter report on
Form 10-Q.

The decline in reported GM earnings is more than accounted for
by losses in the residential mortgage business of GMAC Financial
Services, driven by continued weakness in the U.S. nonprime
mortgage sector.  In addition, last year's results included a
one-time after tax gain of US$395 million due to the sale of a
portion of GM's equity ownership position in Suzuki Motors.

The reported results for the first quarter of 2007 include
unfavorable special items totaling US$32 million after tax
related largely to restructuring actions in Europe and Asia
Pacific, offset in part by a favorable item related to workforce
attrition costs for previously divested components plants.

"The first quarter of 2007 marked another quarter of continued
progress in GM's global automotive operations.  We were able to
expand vehicle sales and improve automotive profitability based
on the progress in our turnaround initiatives in North America
and Europe and our expansion strategy for key growth markets
like China, Russia and South America," said GM chairman and
chief executive officer, Rick Wagoner.  "We continue to see
progress on the automotive bottom line as we implement the
strategies laid out two years ago."

Excluding special items, GM posted adjusted net income of
US$94 million, compared to adjusted net income of US$350 million
in the first quarter of 2006.  Total revenue for the first
quarter of 2007 was US$43.9 billion, down from US$52.4 billion,
almost entirely due to GMAC revenue no longer being included in
GM's consolidated results.  Following the 51 percent equity sale
of GMAC in late 2006, GM is reporting its 49 percent ownership
interest using the equity accounting method.  Automotive revenue
for the first quarter of 2007 was US$42.9 billion, down slightly
from US$43.6 billion in the first quarter of 2006.

                  GM Automotive Operations

Net income from GM's global automotive operations totaled
US$304 million on an adjusted basis, in the first quarter of
2007, compared to US$40 million in the year-ago quarter.

GM sold an all-time first quarter record 2.26 million cars and
trucks in the first quarter of 2007, up 3 percent, or 67,000
units, over the first quarter of 2006.  Sales in the GM Asia
Pacific region grew more than 20 percent; GM Latin America,
Africa and Middle East grew 17 percent, and GM Europe grew 6
percent.  GM's all-time sales record was achieved despite
challenging market conditions in the U.S. largely due to
volatile fuel prices and contraction in the housing market.

                            GMAC

GMAC posted a net loss of US$305 million in the first quarter of
2007, compared to net income of US$495 million in the year-ago
period.  For the first quarter, GM recognized a net loss of
US$115 million associated with its 49 percent ownership of GMAC,
including the accrual of dividends on GMAC preferred membership
interests and certain tax benefits realized.

GMAC results were significantly impacted by a net loss of
US$910 million at Residential Capital LLC due to continued
pressures in the U.S. mortgage market.  GMAC's first quarter net
income generated by auto finance, insurance and other operations
was US$605 million, more than double the earnings generated by
these same operations in the first quarter of 2006.

                     Cash and Liquidity

GM generated adjusted automotive operating cash flow of
US$300 million for the first quarter of 2007, an improvement of
US$1.5 billion year-on-year, with all four regions reporting
improvement.

Cash, marketable securities, and readily-available assets of the
Voluntary Employees' Beneficiary Association trust totaled
US$24.7 billion at March 31, 2007, up from US$21.6 billion on
March 31, 2006, but down from the year-end 2006 total of
US$26.4 billion.

At March 31, 2007, the company's balance sheet showed
US$185.2 billion in total assets, US$188.4 billion in total
liabilities, US$1.1 billion in minority interests, resulting in
a US$4.3 billion total stockholders' deficit.

                    About General Motors

General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- is the
world's largest automaker and has been the global industry sales
leader for 76 years.  GM currently employs about 280,000 people
around the world.  GM manufactures its cars and trucks in 33
countries.  In 2006, nearly 9.1 million GM cars and trucks were
sold globally 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 CASA: Reports MXN165.1 Mil. Net Income in 2007 First Qtr.
---------------------------------------------------------------
Grupo Casa Saba has disclosed its consolidated financial and
operating results for the first quarter of 2007.

Financial Highlights:

   -- First quarter sales totaled MXN5,853.50 million
   -- Gross profit increased 1.46%
   -- Gross margin for the quarter was 9.59%
   -- First-quarter operating expenses increased 0.23%
   -- Operating expenses as a percentage of sales declined
      15 Basis points or bps
   -- First-quarter operating income increased 3.36%
   -- Operating margin in the quarter rose 3 bps to 3.85%
   -- Quarterly tax provisions increased 20.70%
   -- Net income in the first quarter totaled MXN165.10 million,
      a decline of 9.32%
   -- Cash and cash equivalents amounted to MXN495.72 million at
      the close of the quarter

                      Quarterly Results

In first quarter 2007, GCS sales increased 2.73% to a total
MXN5,853.5 million.

Sales of pharmaceutical products to the private sector
registered the greatest comparative increase of all our
divisions over first quarter 2006, ratcheting up 4.04%.  As in
previous quarters, this increase was due to the strong
performance of the private pharmaceuticals market in Mexico,
combined with GCS's business strategy, which focuses on actively
targeting not only our traditional clients but also supermarkets
and drugstore chains.

With respect to sales of products other than pharmaceuticals to
the private sector, sales of health care and beauty products,
consumer goods and other merchandise increased 1.95%, while
sales of publications (includes books and magazines) declined
0.71%.  The share of sales to government institutions in total
sales decreased to 2.66%, mainly due to lower sales to Petroleos
Mexicanos - PEMEX -- as the state-run oil company carried out
changes in its purchasing and subrogation policies.

                      Sales By Division

Private Pharma

The company's main division, Private Pharma, continued as in
previous quarters to increase its share of total sales.  The
positive performance posted by the private pharmaceutical market
in Mexico allowed this division to grow 4.04% compared to first
quarter 2006.

Since Private Pharma registered the strongest growth of any of
the Group's divisions, its share of total sales rose from 82.92%
in first quarter 2006 to 83.99% in first quarter 2007.

Government Pharma

Sales in the company's Government Pharma division declined
22.35%, mainly due to lower sales to PEMEX.  The decline in
sales to PEMEX was the result of GCS's reduced participation in
the current purchasing and subrogation policies implemented by
PEMEX.

As a result, the share of Government Pharma in the Group's total
sales went from 3.52% in first quarter 2006 to 2.66% in first
quarter 2007.

                 Health, Beauty and Other Products

Sales of health care and beauty products, consumer goods,
general merchandise, and others registered growth of 1.95%
compared to first quarter 2006.  This increase was due mainly to
stronger sales of Health, Beauty, and Consumer products, which
rose 2.59% in the quarter.

This division's share of total sales was 9.53%, down slightly
from the 9.61% registered in first quarter 2006.

                           Publications

The sales of Citem diminished 0.71% over the same quarter of the
previous year.  This reduction reflects the fact that the prices
of the magazines distributed by Citem have not been increased
(making for a comparative decrease in real terms) and that sales
volume was not able to offset the aforementioned price effect.

As a result, the share of Citem in the Group's total sales
decreased from 3.95% in first quarter 2006 to 3.82% in the first
quarter of 2007.

                           Gross Income

Gross income of Grupo Casa Saba in first quarter 2007 increased
1.46% to MXN561.29 million.  This growth was slower than that of
sales owing to the discounts offered to the company's customers
in the competitive environments of the company's markets.  As a
result, gross margin was 9.59% in first quarter 2007, down 12
bps from the 9.71% registered in first quarter 2006.

                        Operating Expenses

Operating expenses of GCS in first quarter 2007 amounted to
MXN336.12 million, up 0.23% over first quarter 2006.  Since this
increase was less than that of sales, operating expenses as a
percentage of sales decreased 15 bps to 5.74%.

At GCS we have continued to operate under strict expense
reduction and operating efficiency controls which have allowed
us to constantly lower expenses in ratio to sales generated.

                          Operating Income

Operating income in first quarter 2007 increased 3.36%.
Consequently, GCS's operating margin ratcheted up 3 bps from its
first quarter 2006 level to 3.85%.  The slower growth in
operating expenses largely explains the increase in operating
income and operating margin.

                   Depreciation And Amortization

Depreciation and amortization in first quarter 2007 was down
8.46% compared to first quarter 2006 as a result of a lesser
amount of depreciable assets.  First-quarter operating income
plus depreciation and amortization increased 1.98% over the same
quarter the previous year, to MXN251.59 million.

                     Cash And Cash Equivalents

Cash and cash equivalents at the close of first quarter 2007
amounted to MXN495.72 million, down 10.44% from the same period
of 2006, as a result of greater investment in working capital.

                  Comprehensive Cost Of Financing

CCF in first quarter 2007 amounted to MXN3.51 million, negative
in comparison to the MXN5.24 million income registered in first
quarter 2006.  Lower interest gains, lower exchange income, and
a loss in net monetary position explain this result.

                          Other Expenses

In first quarter 2007, GCS registered income of MXN11.01 million
in this item as the result of sales of transport equipment,
third-party services, and others.  This figure was down 26.36%
in comparison with first quarter 2006.  It should be noted that
the income or expenses registered in this item are related to
activities distinct from the company's normal business
operations.

                          Tax Provisions

Tax provisions for first quarter 2007 amounted MXN67.61 million,
up 20.70% over first quarter 2006.  As a result, the ratio of
tax provisions to income before taxes went from 23.53% in first
quarter 2006 to 29.06% in first quarter 2007.

                            Net Income

Since the increase in operating income was insufficient to
offset the fact that CCF generated an expense rather than income
(in first quarter 2006), and owing to the comparative quarterly
increase in tax provisions, GCS's net income declined 9.32% to
MXN165.10 million in first quarter 2007.

                          Working Capital

In first quarter 2007, accounts receivables measured in terms of
days increased 3.35 to 60.67 days, while inventory days
increased 0.67 to 54.94 days, compared to first quarter 2006.
Accounts payable measured in terms of days showed a slight
decrease of 0.38 from the first quarter 2006 level to 51.02
days.

                         About Grupo Casa

Grupo Casa Saba, S.A. de C.V., operates as a multichannel,
multiproduct wholesale distributor in Mexico.  It primarily
offers pharmaceutical products, health, beauty aids and consumer
goods, general merchandise, publications, and office and other
products.  The company distributes its products through
pharmacies, mass merchandisers, retail and convenience stores,
supermarkets, and other specialized channels.  As of
Dec. 31, 2005, it operated a network of 22 distribution centers.
Grupo Casa Saba also offers a range of value-added services,
including multiple daily deliveries and emergency product
replacement services, as well as provides services that include
training, conferences, and trade fairs.  The company was founded
in 1892 and is based in Mexico City, Mexico.

                        *     *     *

Moody's assigned a Ba2 long-term corporate family rating on
Grupo Casa Saba S.A. de CV since July 15, 2003.


GRUPO TMM: Incurs MXN5.1 Million Net Loss in First Quarter 2007
---------------------------------------------------------------
Grupo TMM posted a MXN5.1-million net loss in the first quarter
2007, compared to a MXN79.1-million profit in the first quarter
2006, Business News Americas reports.

According to BNamericas, Grupo TMM's revenues increased 9.9% to
MXN68.6 million year-on-year in the first quarter 2007.

BNamericas notes that Grupo TMM's operating profits grew 270% to
MXN6.4 million in the first quarter 2007, compared to MXN1.7
million in the first quarter 2006.  Operating margins increased
to 9.3% from 2.8%.

Grupo TMM President Javier Segovia said in a conference call
that the trend of improved operating results will continue into
the second quarter, due to restructuring carried out in 2005 and
2006.  The increases show significant improvements, particularly
in the loss of key revenue from Kansas City Southern de Mexico
activities in early 2006.

BNamericas relates that Grupo TMM reported that its Ebitda
increased 83% to MXN12.8 million in the first quarter 2007,
compared to MXN7.0 million in the first quarter 2006.

Grupo TMM said that it's revenues from port operations grew by
29.9% in the first quarter 2007, from the same period in 2006.
Its operating profit increased by 98.7%, with cruise ship
revenue at the Acapulco port growing 54.8%, and auto-handling
revenues there rising 44.8%, BNamericas relates.

Revenues in Grupo TMM's maritime operations increased by 34.3%,
or MXN10.7 million in this year's first quarter, from last
year's first quarter, BNamericas notes.  Operating profit rose
by 82.9%, or MXN4.5 million.

Mr. Segovia told BNamericas that Mexican state-run oil firm
Pemex is seeking to buy an additional 20 oil tankers -- 10 of
which will be owned, and another 10 will be leased -- and will
turn to firms like Grupo TMM, which just doesn't fund and run
vessels, but also has a 13-year performance-based service
record.  Pemex would call for bids and award the first contracts
in June.

Grupo TMM said that its operating profit in logistics operations
totaled MXN500,000 in the first quarter 2007, with future
improvements expected for fuel efficiency, maintenance and
profit, according to BNamericas.

Grupo TMM expects investment in logistics operations to boost
profit and revenue in the third and fourth quarters, BNamericas
states, citing Mr. Segovia.

Headquartered in Mexico City, Grupo TMM SA (NYSE: TMM)(MEX
VALORIS: TMMA) -- http://www.grupotmm.com/-- is a Latin
American multimodal transportation and logistics company.
Through its branch offices and network of subsidiary companies,
TMM provides a dynamic combination of ocean and land
transportation services.

                        *     *     *

Standard & Poor's Ratings Services raised its corporate credit
rating on Grupo TMM SA to 'B-' from 'CCC.'  The rating was
removed from Creditwatch, where it was placed on Dec. 15, 2004.
S&P said the outlook is positive.


HIPOTECARIA CREDITO: Securitizes MXN1 Bil. Non-Performing Loans
---------------------------------------------------------------
Business News Americas reports that Hipotecaria Credito y Casa
has securitized about MXN1 billion of non-performing loans.

Hipotecario Credito said in a filing with the Mexican stock
exchange that the asset-backed bonds were placed privately in a
deal arranged by Credit Suisse.

According to BNamericas, the transaction is part of Hipotecaria
Credito's plan to diversify its funding sources.  The company
will still be responsible for recovering the securitized non-
performing loans.

BNamericas notes that Hipotecaria Credito has a loan book of
MXN23 billion including off-balance sheet loans.

Standard & Poor's analyst Mauricio Tello told BNamericas that
market observers think that there will be more transactions like
this, which would help clean-up financial institutions' balance
sheets.

Hipotecaria Credito y Casa is a special purpose financial
company, or Sofol, that specializes in low-income mortgage
lending and also provides construction bridge loans for housing
developments.  It is based in Culiacan, Sinaloa, Mexico.  It
started operations in 1997 as a non-bank financial
institution/Sofol Mortgage Company. Hippotecaria Credito's main
activity consists of extending mortgages financed by monies from
SHF to low income households.  As of March 31, 2006, the company
reported assets of MXN19.3 billion and MXN1.3 billion in equity.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 27, 2006, Moody's de Mexico assigned a (P)B1 senior
unsecured debt, and Baa2.mx ratings on the MXN3 billion MTN
programs of Hipotecaria Credito y Casa, S.A. de C.V.  Moody's
said the rating outlook was stable.


LIBBEY INC: Board Declares US$0.025 Per Share Quarterly Dividend
----------------------------------------------------------------
Libbey Inc.'s Board of Directors declared the company's
quarterly cash dividend of US$0.025 cents per share.  The
dividend will be paid on May 29, 2007, to shareholders of record
as of May 16, 2007.  As of April 30, 2007, Libbey had 14,396,319
shares outstanding.

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

                        *     *     *

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


NAVISTAR INT'L: Files US$2 Billion Counter Claim Against Ford
-------------------------------------------------------------
Navistar International Corp. has filed an amended complaint
against Ford Motor Co. seeking more than US$2 billion in
damages, Reuters reports.

According to the report, the company's amended complaint stemmed
from hints that the automaker was planning to develop its own
diesel engine for release prior to 2012.

The company, through its International Truck and Engine Corp.
operating company, has been the exclusive diesel engine supplier
for Ford's Super Duty pickup trucks since 1979 and had launched
a new 6.4L Power Stroke(R) for Ford's new Super Duty.

                   Diesel Engine Litigation

In a filing with the U.S. Securities and Exchange Commission,
Ford disclosed that on January 2007, it filed a suit against the
company seeking, among other things, reimbursement for warranty
and related costs involving prior model-year diesel engines
supplied by International Truck.

On Feb. 26, 2006, the company suspended production claiming that
Ford stopped honoring the terms under which the engines were
built.  Ford sought a temporary restraining order from Judge
John J. McDonald of the Circuit Court of Oakland County,
Michigan.

Judge McDonald issued an order on Feb. 28 that required
International Truck to resume production and Ford to pay with no
withholding until a hearing was held.

The company entered into a consent injunction with Ford which
Navistar's operating company will continue shipping 6.4L Power
Stroke(R) diesel engines and Ford will pay, without deductions,
for each engine.

                     About Ford Motor Co.

Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures or distributes automobiles
in 200 markets across six continents.  With about 260,000
employees and about 100 plants worldwide, the company's core
and affiliated automotive brands include Ford, Jaguar, Land
Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda.  The
company provides financial services through Ford Motor Credit
Company.

             About Navistar International Corp.

Based in Warrenville, Illinois, Navistar International Corp.
(NYSE:NAV) -- http://www.nav-international.com/-- is the parent
company of Navistar Financial Corp. and International Truck and
Engine Corp.  The company produces International brand
commercial trucks, mid-range diesel engines and IC brand school
buses, Workhorse brand chassis for motor homes and step vans,
and is a private label designer and manufacturer of diesel
engines for the pickup truck, van and SUV market.  The company
also provides truck and diesel engine parts and service sold
under the International brand.  A wholly owned subsidiary offers
financing services.  Its Latin America operations include
Argentina, Brazil and Mexico.

                        *     *     *

As reported in the Troubled Company Reporter on Jan. 12, 2006,
Fitch assigned a 'BB-' rating to Navistar International Corp.'s
proposed US$1.3 billion senior unsecured credit facility.

Fitch also withdrew the 'BB-' rating on the company's senior
unsecured notes, the 'B' rating on company's senior subordinated
debt, and the senior unsecured debt rating at Navistar Financial
Corp., all of which have been substantially retired.  Fitch
expected to withdraw the 'BB-' rating on company's existing
credit facility upon the closing of the new US$1.3 billion
facility.


PORTRAIT CORP: Inks Pact Selling Assets to CPI for US$100MM Cash
----------------------------------------------------------------
CPI Corp. entered into a definitive agreement to acquire
substantially all of the operating assets of Portrait
Corporation of America, Inc. and its foreign and domestic
affiliates for US$100 million in cash, subject to certain
closing adjustments, and the assumption of certain liabilities.

PCA will file a motion seeking approval of the asset purchase
agreement.  The parties expect the U.S. Bankruptcy Court for the
Southern District of New York to conduct a hearing on the motion
in May 2007.  The transaction is expected to close by the end of
June 2007.

Commenting on the acquisition, Renato Cataldo, President and
Chief Executive Officer, stated, "We are excited about the
opportunity to leverage our strong digital capabilities and
infrastructure and proven project management skills to upgrade
PCA's studios with digital technology, improve convenience and
flexibility and enhance the overall customer experience.  We are
also pleased to be embarking on a relationship with Wal-Mart
which we look forward to strengthening and expanding both
domestically and internationally including in a new branded
format.  Finally, we are pleased about the opportunities this
deal brings to employees of both organizations.  We have
consciously become a more field-focused organization in recent
years to better address the needs of our Sears Portrait Studio
associates.  We aim to bring the same focus on the PCA field
organization and will eagerly solicit their views and concerns.
We believe the combination will benefit customers, employees and
shareholders alike."

                       About CPI Corp.

CPI Corp. (NYSE: CPY) is a portrait photography company offering
photography services in the United States, Puerto Rico and
Canada through Sears Portrait Studios.  The Company also
operates http://searsphotos.com/-- the vehicle for the
Company's customers to archive, share portraits via email and
order additional portraits and products.

                 About Portrait Corporation

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.


VISTEON CORP: Posts US$153 Mil. Net Loss in Qtr. Ended March 31
---------------------------------------------------------------
Visteon Corporation reported a net loss of US$153 million on
total sales of US$2.93 billion for the first quarter ended
March 31, 2007, compared with net income of US$3 million on
total sales of US$2.96 billion for the same period ended
March 31, 2006.

Results for the first quarter of 20076 included US$41 million of
expenses reimbursable from the 400 million escrow account funded
by Ford and non-cash asset impairments of US$50 million.
Results for the first quarter of 2006 included US$9 million of
restructuring expenses, which qualified for reimbursement from
the escrow account.

"We continue to make progress implementing our restructuring,
improvement and growth plan, despite North American production
declines," said Michael F. Johnston, chairman and chief
executive officer.  "We anticipated this environment, and we
have taken the necessary steps to ensure we have the financing
and flexibility we need to continue our momentum."

Total sales for first quarter 2007 totaled US$2.93 billion.
First quarter 2007 product sales were US$2.8 billion, down
slightly from first quarter 2006 as favorable currency and
increased sales in Europe and Asia were offset by lower
production volumes, principally in North America.  Services
revenues of US$130 million decreased US$15 million from the same
period in 2006.

Cash used by operating activities for the first quarter of 2007
was US$131 million compared with cash provided by operating
activities of US$32 million in the same period a year ago.
First quarter 2007 cash flow was impacted by normal seasonal
factors, customer and geographic sales mix, the change in
payment terms from Ford in North America and operating
performance.

Capital expenditures for the first quarter of 2007 of US$64
million were US$21 million lower than the same period a year
ago.  Free cash flow for the first quarter of 2007 was negative
US$195 million, compared with negative US$117 million in the
same period of 2006.

As of March 31, 2007, cash balances totaled US$872 million as
compared to US$1.057 billion at Dec. 31, 2006.  Total debt of
US$2.2 billion as of March 31, 2007, was essentially unchanged
from year-end 2006.

Visteon reached agreement to sell certain chassis operations in
Germany, Poland and Brazil to Special Situations Venture Partner
II LP in March 2007.  On April 30, 2007, the European facilities
were transferred to SSVP.  Driveline assets located in Visteon's
Sao Paulo, Brazil facility will be transferred in the second
half of 2007.

"With the completion of these chassis divestitures, half of the
actions we committed to take in our multi-year plan are
complete," said Don Stebbins, president and chief operating
officer.  "By addressing non-core and underperforming assets we
continue to enhance our already strong global footprint, as we
focus on our core product areas and position Visteon for
profitable growth."

At March 31, 2007, the company's balance sheet showed
US$6.84 billion in total assets, US$6.68 billion in total
liabilities and US$263 million in minority interest, resulting
in a US$106 million total stockholders' deficit.

                     About Visteon Corp.

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

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
April 10, 2007, Fitch Ratings has taken these actions regarding
the ratings of Visteon Corp.:

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




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


NUTRO PRODUCTS: Moody's Reviews Ratings for Possible Downgrade
--------------------------------------------------------------
Moody's Investors Service changed its review for possible
downgrade of the ratings of Nutro Products, Inc., including the
corporate family rating of B2, to a review for possible upgrade.
This change in direction of the review follows the announcement
that Mars, Incorporated will acquire the global pet food
operations of Nutro, subject to regulatory approvals.  Terms of
the acquisition by Mars have not been disclosed.  Loss-given-
default assessments are also subject to change.

Ratings under review for possible upgrade:

   -- 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

The prior review for possible downgrade, begun on
April 11, 2007, was based on Moody's concern that the widening
recall of wet pet foods produced by Nutro's third party
manufacturer Menu Foods and Nutro's concurrent recall of all
Nutro wet pet foods made with wheat gluten.  Moody's was
concerned that this recall would negatively impact sales and
profitability of highly leveraged Nutro, delaying Moody's
previously anticipated reduction in leverage beyond the end of
fiscal 2007.

Moody's review will focus on both the successful execution of
the acquisition, the post transaction credit profile of the
company and the ultimate disposition of the company's debt.
Should most of Nutro's debt be repaid, its ratings will be
withdrawn.

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


INTERLINE BRANDS: Reports US$9.4 Mil. Net Income in First Qtr.
--------------------------------------------------------------
Interline Brands, Inc., has earned US$9.4 million of net income
for the three months ended March 31, 2007, compared to
US$8.4 million of net income for the same period in 2006.  Sales
for the first quarter of 2007 increased 31.5% over the
comparable 2006 period.  Earnings per diluted share were US$0.29
for the first quarter of 2007, an increase of 12% over earnings
per diluted share of US$0.26 in the same period last year.

Michael Grebe, Interline's Chairman and Chief Executive Officer,
commented, "We are pleased to report another strong quarter at
Interline Brands.  Our facilities maintenance business posted
record sales and despite continued softness in our pro
contractor market, our team continued to execute well,
generating record cashflow and double digit earnings growth for
the company."

               First Quarter 2007 Performance

Sales for the quarter ended March 30, 2007 were US$295.4
million, a 31.5% increase over sales of US$224.7 million in the
comparable 2006 period.  Average organic daily sales growth for
the first quarter was 3.2%.

"Our revenue growth in the first quarter was driven by a
combination of our July 2006 acquisition of AmSan as well as
strong performance in our facilities maintenance businesses --
which grew at 14.1 percent", said William Sanford, President and
Chief Operating Officer.  "Our professional contractor business
declined 6.2 percent in the first quarter compared to the 15.4
percent we grew in the first quarter of 2006."

Gross profit increased US$26.6 million to US$112.3 million for
the first quarter of 2007.  As a percentage of net sales, gross
profit was 38.0 percent or 10 basis points lower than the
comparable 2006 period at 38.1 percent.

SG&A expenses for the first quarter of 2007 were US$85.3 million
compared to US$61.7 million for the first quarter of 2006.  As a
percentage of net sales, SG&A expenses were 28.9% compared to
27.5% in the comparable 2006 period.  This expected increase in
SG&A is primarily a result of including the operating
performance of AmSan, which was acquired in July 2006, the
continued investment in organic growth initiatives, and
incremental share based compensation.

"We invested approximately US$1.6 million during the quarter in
organic growth initiatives, including the expansion of our field
sales force, as well as national accounts and supply chain
management programs," said Mr. Grebe.

As a result, operating income increased 13.9% to US$23.4
million, or 7.9% of sales, for the first quarter of 2007
compared to US$20.6 million, or 9.2% of sales, for the first
quarter of 2006.

                       Business Outlook

Mr. Grebe stated, "Our performance in the first quarter of 2007
was at the high end of our expectations.  We continue to remain
highly confident in our ability to grow sales and earnings over
the long term.  Our second quarter may be the most challenging
quarter given the difficult market conditions surrounding the
pro contractor and specialty distributor end-markets.  We are
also up against tough prior year comps of 22.2% and 18.9%
organic sales growth, respectively, in these markets.  As such,
we expect earnings per share for the second quarter of 2007 to
be between US$0.32 and US$0.34.  For the full year, we continue
to remain confident in our ability to grow Interline's earnings
and as such reaffirm our prior guidance of US$1.49 to US$1.55."

Adjusted pro forma net income per diluted share was US$1.34 for
fiscal year 2006 and US$0.30 for the 2nd quarter of 2006.

                   About Interline Brands

Headquartered in Jacksonville, Florida, Interline Brands, Inc.
(NYSE: IBI) -- http://www.interlinebrands.com/-- is a leading
national distributor and direct marketer of maintenance, repair
and operations products to approximately 160,000 professional
contractors, facilities maintenance professionals, and specialty
distributors across North America and Puerto Rico.

                        *     *     *

In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. manufacturing sector, the rating agency
confirmed its B1 Corporate Family Rating for Interline Brands
Inc., as well as its B3 rating on the company's US$200 million
8.125% Senior Subordinate Notes due 2014.  Those debentures were
assigned an LGD5 rating suggesting noteholders will experience
an 82% loss in the event of default.

Additionally, Moody's revised its probability-of-default ratings
and assigned loss-given-default ratings on these loans and bond
debt obligations of the company:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$100m Sr. Sec.
   Revolver Due
   2012                   Ba3      Ba2     LGD2        29%

   US$100m Sr. Sec.
   Term Loan Due
   2013                   Ba3      Ba2     LGD2        29%

   US$130m Sr. Sec.
   Delayed Draw
   Term Loan Due
   2013                   Ba3      Ba2     LGD2        29%




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


MILLIPORE CORP: UBS Maintains Buy Rating on Firm's Shares
---------------------------------------------------------
Newratings.com reports that UBS analysts have kept their "buy"
rating on Millipore Corp.'s shares.

According to Newratings.com, the target price for Millipore's
shares was increased to US$87 from US$85.

The analysts said in a research note published on May 3 that
Millipore's first quarter 2007 sales and pro forma earnings per
share were ahead of the estimates and the consensus.

UBS told Newratings.com that the sequential increase in selling,
general and administrative expenses in the first quarter 2007
were offset by a sustainable tax rate, increased gross margins
and sales growth.

Newratings.com relates that the earnings per share estimate for
2007 was increased to US$3.45 from US$3.40, while the estimate
for 2008 was raised to US$4.05 from US$4.01, to reflect higher
margins and the first quarter advantage.

Meanwhile, Robert W. Baird analysts have maintained their
"neutral" rating on Millipore's shares.  The target price was
decreased to US$76 from US$78, Newratings.com notes.

The Robert W. Baird analysts said in a research note published
on May 3 that Millipore's first quarter 2007 sales and pro forma
earnings per share were "broadly in-line with the estimates."

The analysts told Newratings.com that though Millipore's first
quarter sales composition wasn't what the company planned, it is
expected to revert in the second half.

The earnings per share estimate for this year was increased to
US$3.37 from US$3.36, while the earnings per share estimate for
next year was reduced to US$4.00 from US$4.06 to indicate higher
costs/investment level.

Headquartered in Billerica, Massachusetts, Millipore Corp., is a
bioprocess and bioscience products and services company.  The
Bioprocess division offers solutions that optimize development
and manufacturing of biologics.  The Bioscience division
provides high performance products and application insights that
improve laboratory productivity.  The company has presence in 18
Latin American countries including Chile, El Salvador 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 Medical Device sector, the rating agency
confirmed its Ba1 Corporate Family Rating for Millipore Corp.

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

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   Unsec. Notes
   due 2007               Ba2      Ba2    LGD5         72%

   Sr. Unsec.
   EURO-Denominated
   Notes due 2016         Ba2      Ba2    LGD5         72%




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


BANCO DE LA REPUBLICA: Moody's Ups Fin'l Strength Rating to D-
--------------------------------------------------------------
Moody's Investors Service has raised its bank financial strength
rating (BFSR) on Banco de la Republica Oriental del Uruguay to
D- from E+, in connection with the rating agency's
implementation of its refined joint default analysis (JDA) and
updated BFSR methodologies for banks in Uruguay.

Moody's also affirmed Banco de la Republica's Baa2 local
currency deposit rating, B2 foreign currency deposit rating,
Aaa.uy long-term local currency deposit rating and A3.uy foreign
currency deposit ratings.

The BFSRs of four Uruguayan banks were upgraded by one or two
notches, as a result of their improving franchise and financial
metrics.  The upgrade of the BFSR in the case of Surinvest
resulted in the lift in the local currency deposit rating by two
notches to B3, from Caa2, and to the upgrade of the national
scale deposit rating.

Moody's has assigned support levels to banks in Uruguay using
its support guideline for highly dollarized countries.  This
guideline takes into consideration the history of support for
banks, the size, strength and the fragmentation of the Uruguayan
banking system, as well as the extent to which a high level of
dollarization may limit Uruguay's ability to support its banks.

BFSRs evaluate the stand-alone or intrinsic financial strength
of banks without reference to external support factors.  BFSRs
are the starting point of Moody's bank credit analysis, and are
an important determinant of Moody's bank deposit and debt
ratings.

Moody's then uses its JDA methodology to incorporate the
potential for external support into a bank's local currency
deposit rating.  The potential for external support can reduce
the risk of a bank's deposit and debt obligations; however, such
support is often uncertain.  Moody's uses conservative support
assumptions and a limited number of support levels to ensure
that sufficient weight is given to a bank's intrinsic financial
strength in its bank deposit and debt ratings.

Moody's uses deposit ratings to determine bank debt ratings
based on its notching guidelines for bank securities.  Ratings
for foreign currency obligations are determined after
considering Moody's country ceilings for foreign currency
ratings.

The methodologies are being implemented country by country, with
results being announced on a weekly basis.  Results for those
banks with a parent bank located in another country where the
methodologies have not yet been implemented will be concluded at
the same time as the parent.

The BFSRs of four Uruguayan banks were upgraded by one or two
notches, as a result of their improving franchise and financial
metrics.

Headquartered in Montevideo, Uruguay, Banco de la Republica
Oriental de Uruguay -- http://www.brounet.com.uy-- is a state-
owned bank.


BANCO SANTANDER: Moody's Ups Financial Strength Rating to D
-----------------------------------------------------------
Moody's Investors Service has confirmed that it raised its bank
financial strength rating Banco Santander S.A. (Uruguay) to D
from E+, in connection with the rating agency's implementation
of its refined joint default analysis and updated BFSR
methodologies for banks in Uruguay.

Banco Santander's Local Currency Deposit Rating is downgraded to
Ba1 from Baa3.  Its Foreign Currency Deposit Rating is affirmed
at B2.  The company's long term Local Currency Deposit Rating in
National Scale is downgraded to Aa2.uy from Aa1.uy and its long
term Foreign Currency Deposit Rating in National Scale is
affirmed at A3.uy.

The global local currency deposit rating for Banco Santander
Uruguay S.A. was downgraded by one-notch to Ba1, from Baa3,
primarily due to the fact that Moody's lowered its expectations
for parental support.  A moderate level of potential support is
consistent with Moody's view of support for other rated bank
subsidiaries of Banco Santander Central Hispano S.A.

The BFSRs of four Uruguayan banks were upgraded by one or two
notches, as a result of their improving franchise and financial
metrics.  The upgrade of the BFSR in the case of Surinvest
resulted in the lift in the local currency deposit rating by two
notches to B3, from Caa2, and to the upgrade of the national
scale deposit rating.

Moody's has assigned support levels to banks in Uruguay using
its support guideline for highly dollarized countries.  This
guideline takes into consideration the history of support for
banks, the size, strength and the fragmentation of the Uruguayan
banking system, as well as the extent to which a high level of
dollarization may limit Uruguay's ability to support its banks.

BFSRs evaluate the stand-alone or intrinsic financial strength
of banks without reference to external support factors.  BFSRs
are the starting point of Moody's bank credit analysis, and are
an important determinant of Moody's bank deposit and debt
ratings.

Moody's then uses its JDA methodology to incorporate the
potential for external support into a bank's local currency
deposit rating.  The potential for external support can reduce
the riskiness of a bank's deposit and debt obligations; however,
such support is often uncertain.

Moody's uses conservative support assumptions and a limited
number of support levels to ensure that sufficient weight is
given to a bank's intrinsic financial strength in its bank
deposit and debt ratings.

Moody's uses deposit ratings to determine bank debt ratings
based on its notching guidelines for bank securities.  Ratings
for foreign currency obligations are determined after
considering Moody's country ceilings for foreign currency
ratings.


BANCO SURINVEST: Moody's Ups Fin'l Strength Rating to E+ from E
---------------------------------------------------------------
Moody's Investors Service has confirmed that it raised its bank
financial strength rating Banco Surinvest S.A. to E+ from E,
in connection with the rating agency's implementation of its
refined joint default analysis and updated BFSR methodologies
for banks in Uruguay.

Banco Surinvest's Local Currency Deposit Rating is upgraded to
B3 from Caa2.  Its Foreign Currency Deposit Rating is upgraded
to B3 from Caa2.  The company's long term Local Currency Deposit
Rating in National Scale Rating is upgraded to Ba2.uy from B2.uy
and its long term Foreign Currency Deposit Rating in National
Scale is upgraded to Ba2.uy from B2.uy.

The BFSRs of four Uruguayan banks were upgraded by one or two
notches, as a result of their improving franchise and financial
metrics.  The upgrade of the BFSR in the case of Surinvest
resulted in the lift in the local currency deposit rating by two
notches to B3, from Caa2, and to the upgrade of the national
scale deposit rating.

Moody's has assigned support levels to banks in Uruguay using
its support guideline for highly dollarized countries.  This
guideline takes into consideration the history of support for
banks, the size, strength and the fragmentation of the Uruguayan
banking system, as well as the extent to which a high level of
dollarization may limit Uruguay's ability to support its banks.

BFSRs evaluate the stand-alone or intrinsic financial strength
of banks without reference to external support factors.  BFSRs
are the starting point of Moody's bank credit analysis, and are
an important determinant of Moody's bank deposit and debt
ratings.

Moody's then uses its JDA methodology to incorporate the
potential for external support into a bank's local currency
deposit rating.  The potential for external support can reduce
the riskiness of a bank's deposit and debt obligations; however,
such support is often uncertain.

Moody's uses conservative support assumptions and a limited
number of support levels to ensure that sufficient weight is
given to a bank's intrinsic financial strength in its bank
deposit and debt ratings.

Moody's uses deposit ratings to determine bank debt ratings
based on its notching guidelines for bank securities.  Ratings
for foreign currency obligations are determined after
considering Moody's country ceilings for foreign currency
ratings.

Banco Surinvest S.A., established in 1981, Surinvest began its
activities in Montevideo, like Banking House, positioning itself
quickly in the market like an institution that combines an ample
knowledge of the regional financial markets with the endorsement
of a prestigious group of institutional shareholders.


BANKBOSTON URUGUAY: Moody's Ups Financial Strength Rating to D
--------------------------------------------------------------
Moody's Investors Service has confirmed that it raised its bank
financial strength rating BankBoston Uruguay S.A. to D from E+,
in connection with the rating agency's implementation of its
refined joint default analysis and updated BFSR methodologies
for banks in Uruguay.

BankBoston Uruguay's Local Currency Deposit Rating is affirmed
at Ba2.  Its Foreign Currency Deposit Rating is affirmed at B2.
The company's long term Local Currency Deposit Rating in
National Scale Rating is affirmed at Aa3.uy and its long term
Foreign Currency Deposit Rating in National Scale is affirmed at
A3.uy.

The BFSRs of four Uruguayan banks were upgraded by one or two
notches, as a result of their improving franchise and financial
metrics.  The upgrade of the BFSR in the case of Surinvest
resulted in the lift in the local currency deposit rating by two
notches to B3, from Caa2, and to the upgrade of the national
scale deposit rating.

Moody's has assigned support levels to banks in Uruguay using
its support guideline for highly dollarized countries.  This
guideline takes into consideration the history of support for
banks, the size, strength and the fragmentation of the Uruguayan
banking system, as well as the extent to which a high level of
dollarization may limit Uruguay's ability to support its banks.

BFSRs evaluate the stand-alone or intrinsic financial strength
of banks without reference to external support factors.  BFSRs
are the starting point of Moody's bank credit analysis, and are
an important determinant of Moody's bank deposit and debt
ratings.

Moody's then uses its JDA methodology to incorporate the
potential for external support into a bank's local currency
deposit rating.  The potential for external support can reduce
the riskiness of a bank's deposit and debt obligations; however,
such support is often uncertain.

Moody's uses conservative support assumptions and a limited
number of support levels to ensure that sufficient weight is
given to a bank's intrinsic financial strength in its bank
deposit and debt ratings.

Moody's uses deposit ratings to determine bank debt ratings
based on its notching guidelines for bank securities.  Ratings
for foreign currency obligations are determined after
considering Moody's country ceilings for foreign currency
ratings.

BankBoston is one of the 10 largest banks in Argentina in terms
of assets, deposits and loans and it ranks among the top five
private banks.




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


HARVEST NATURAL: Incurs US$6.5-Mil. Loss in First Quarter 2007
--------------------------------------------------------------
Harvest Natural Resources said in a statement that it incurred a
US$6.5-million loss in the first quarter 2007, compared to
US$13.9-million earnings in the first quarter 2006.

Business News Americas relates that Harvest Natural's production
totaled 1.5 million barrels of oil and 3.3 billion cubic feet of
natural gas in the first quarter 2007.  Its average daily output
was 16,600 barrels per day and 36 million cubic feet per day.
Revenue for the quarter was US$59 million.

According to BNamericas, Harvest Natural couldn't determine
equity earnings for its Venezuelan production operations in the
first quarter 2007 pending finalization of the Petrodelta joint
venture deal with the country's state-owned oil company
Petroleos de Venezuela SA.  The firm also failed to recognize
equity earnings for the operations in the last three quarters in
2006.

Harvest Natural told BNamericas that once the joint venture
process is concluded, the company will begin reporting
Venezuelan earnings.

BNamericas notes that Harvest Natural's shareholders ratified
plans to execute a conversion contract in Venezuela to transfer
all the South Monagas Unit fields to Petrodelta, of which
Petroleos de Venezuela will own majority of the shares.
Petrodelta will develop and run the fields and the Isleno,
Temblador and El Salto fields under a 20-year license.

"The agreed business plan envisions rapid development of the
proved reserve base and the appraisal and development of the
numerous opportunities associated with the new fields," Harvest
Natural told BNamericas.

Harvest Natural Resources, Inc. -- http://www.harvestnr.com/--
is an international oil and gas company that seeks and develops
large resources in countries that others may perceive to be
challenging. Its producing operations are conducted principally
through the company's 80% owned Venezuelan subsidiary, Harvest
Vinccler, Calif., which operates the South Monagas Unit in
Venezuela.

                        *     *     *

Harvest Natural Resources carries these ratings from Moody's
Investor Service since Sept. 17, 2004:

     -- Issuer Rating, Caa1
     -- Long-Term Corp. Family Rating, B3
     -- Senior Unsecured Debt, B3


PETROLEOS DE VENEZUELA: Bonds Affected by Nationalization
---------------------------------------------------------
Venezuela's taking over of four heavy-crude projects at it
Orinoco Oil Belt has negatively affected its bond issues.

Marianna Parraga at El Universal reports that the state-oil
firm's 2017 bonds went down from 84.15% on April 9 to 83% on
May 2.  The nationalization on May 1 of the Orinoco projects may
result to a likely defaut on public debts issued by Cerro Negro
oil strategic partnership.

Financial analysts said that Petroleos de Venezuela's debts
expiring in 10 to 30 years are slightly below 78% of their value
to reflect the market's perception of Venezuela's
nationalization.

As reported Friday, the state company may repurchase US$1.6
billion of bonds sold by oil production joint ventures run by
Exxon Mobil Corp. and ConocoPhillips, after the government took
control of the projects.  However, director Eulogio del Pino
said the government may also consider other options besides the
repurchase.

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

                        *     *     *

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


PETROLEOS DE VENEZUELA: Will Start Extracting Crude from Orinoco
----------------------------------------------------------------
Venezuela's President Hugo Chavez told the state news agency
Agencia Bolivariana de Noticias that state-owned oil firm
Petroleos de Venezuela SA will begin extracting extra-heavy
crude oil from deposits in the Orinoco oil belt by injecting air
directly into the well.

Business News Americas relates that Intevep, Petroleos de
Venezuela's research and development unit, developed the method.

Luis Rodriguez, manager of the Magna Reserva reserve-assessment
project for Orinoco's Carabobo area, explained to BNamericas,
"Essentially, you inject hot air into the reservoir through the
well... the hot air reacts with the water present and creates
enough heat to alter the crude's viscosity."

The "pilot implementation" will begin late in 2007, BNamericas
states, citing Mr. Rodriguez.

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

                        *     *     *

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


PETROLEOS DE VENEZUELA: Won't Take on Orinoco's US$4-Bil. Debt
--------------------------------------------------------------
Venezuelan Energy Minister and state-owned oil company Petroleos
de Venezuela SA President Rafael Ramirez told state television
network Venezolana de Television that the firm won't repurchase
nor assume the four Orinoco extra-heavy crude projects' US$4-
billion debt.

Minister Ramirez commented to Business News Americas, "Those
debts will have to be assumed by each of the companies."

BNamericas relates that on May 1, Petroleos de Venezuela
employees accompanied by Venezuelan military assumed operational
control of the four Orinoco projects:

          -- Ameriven,
          -- Cerro Negro,
          -- Sincor, and
          -- Petrozuata.

According to BNamericas, Petroleos de Venezuela's partners in
the projects include:

          -- ExxonMobil,
          -- Chevron,
          -- ConocoPhillips,
          -- BP,
          -- Total, and
          -- Statoil.

Petroleos de Venezuela is negotiating deals to boost its stake
in the projects to at least 60% from 40%, BNamericas states.

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

                        *     *     *

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


* VENEZUELA: Creates VEB1.6-Bil. Fund for Cantv Nationalization
---------------------------------------------------------------
News daily El Universal reports that the Venezuelan government
has formed a VEB1.6-billion fund to help pay for the planned
nationalization of Cantv.

As reported in the Troubled Company Reporter-Latin America on
April 17, 2007, the Venezuelan telecommunications regulator
Conatel disclosed that government wanted operational control of
Cantv by June 4.  Holding 35.1% stake of Cantv after its
purchase of Verizon Communication's 28.5% holding, the
government offered the other Cantv shareholders to purchase the
rest of the shares.  On April 9, to further to expand control,
the government launched a public tender offered of VEB4,560 per
local share and US$14.85 for American Depositary Shares on the
New York Stock Exchange to obtain a majority stake in Cantv.
The government expects to hold an extraordinary shareholders'
meeting to elect the new board of the company on June 4, after
the end of the tender offer.  Once under control, the government
wants to continue expanding the telephony infrastructure to
provide coverage in areas where the company has no reach.  The
government expects all localities with more than 500 inhabitants
to have fixed and mobile coverage by 2011.

Gaceta Oficial de la Republica Bolivariana de Venezuela relates
that the government will use the fund to help pay for the Oferta
Publica de Adquisicion it launched on April 9 and pay for
administrative management services associated with the OPA.

BNamericas notes that the Venezuelan congressional assembly
ratified the fund on April 25.

According to Business News Americas, the government expects to
own 100% of Cantv through the OPA.

The government is offering VEB4,560 per local share and US$14.85
for American Depositary Shares on the New York Stock Exchange,
BNamericas states.

                        *     *     *

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


* VENEZUELA: President Warns of Nationalizing Banking Sector
------------------------------------------------------------
Venezuelan President Hugo Chavez, after nationalizing the oil
and utility sectors, has warned the banking industry and the
nation's largest steelmaker Ternium-Sidor of doing the same to
them.

Reuters says in the banks and Sidor's cases, the president's
threat was conditional.  He said that these businesses could
avoid government takeover if they adapted their operations to
respond to the nation's socialist interests.

Banks should prioritize domestic loans while Sidor should focus
more on supplying the local market with cheap products, the
Venezuelan leader said, according to Reuters.

"Privately-owned banks must prioritize low-cost financing for
Venezuela's industry. If they don't want to do this they can
leave, they can give us the banks, we can nationalize them,"
President Chavez declared.

Ternium is a unit of Argentine-Italian conglomerate Techint.
Venezuela's government currently owns 21% of Sidor's shares,
while workers hold roughly a 20% stake, MarketWatch says.

Foreign banks operating in Venezuela includes: Spain's Santander
Central Hispano SA, which owns Banco de Venezuela, and Banco
Bilbao Vizcaya Argentaria, which runs Banco Provincial.  The
U.S.' Citigroup also has a unit in the Andean country.  Canada's
Bank of Nova Scotia owns a stake in Venezuela's Banco Caribe.

An unnamed banker interviewed by Reuters said that the
president's threat is "madness."

"The president is not measuring his words nor the effect of his
announcements -- you just have to look at how the debt has been
affected," Reuters unnamed source said.

Patrick Esteruelas, an analyst at Eurasia Group, told Reuters
that Venezuela would be thinking twice before "nationalizing a
company from one of its closest allies in the region."

                        *     *     *

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


* VENEZUELA: Won't Pay Private Firms for Takeover
-------------------------------------------------
El universal reports that the Venezuelan government has no plans
of paying private companies for its recent takeover of their
properties, as part of the government's nationalization of the
four projects in the Orinoco oil belt.

Venezuelan Energy and Petroleum Minister Rafael Ramirez told
television channel Venezolana de Television, "We do not expect
to pay money.  Therefore, we can reach an agreement with those
companies."

As reported in the Troubled Company Reporter-Latin America on
April 30, 2007, major international oil companies agreed to cede
to the Venezuelan government control over four heavy-crude
projects in Orinoco.  Venezuelan President Hugo Chavez issued a
decree in March that the government will hold majority stakes in
the Orinoco River basin projects beginning May 1.  Minister
Ramirez said that ConocoPhillips Co. had yet to sign a
memorandum of understanding while Exxon Mobile Corp. previously
signed one of the agreements.  Mr. Ramirez stated that if
ConocoPhillips wouldn't sign by May 1, the state would take
charge of its oil fields as Venezuela moves to impose majority
state control.

According to El Universal, foreign oil firms had launched
operations in Orinoco in the nineties by means of concessions
granted by the Venezuelan government.

Venezuelan officials are still negotiating economic accords with
representatives from the foreign firms, El Universal states,
citing Minister Ramirez.

                        *     *     *

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.


* BOOK REVIEW: American Economic History
----------------------------------------
Author:     Seymour E. Harris
Publisher:  Beard Books
Paperback:  572 pages
List Price: US$34.95

Order your personal copy at
http://www.amazon.com/exec/obidos/ASIN/158798136X/internetbankru
pt

American Economic History edited by Seymour E. Harris presents
different points of view by a number of experts and is a
valuable addition for any economic history collection.

This eclectic tome is an anthology of 15 chapters by 20 notable
contributors discussing and analyzing American economic history
from about 1800 to the late 1950s.

Each subject undertaken falls under one of four major rubrics:
major issues, broad issues of policy, determinants of income,
and regional growth. Specific topics include fiscal policy,
patterns of employment, unionism, economic fluctuations,
population and immigration, natural resources policies, etc.

All of them bolster Arthur Schlesinger, Jr.'s statement in the
opening chapter: "The economic experience of the United States
provides a compact example of the growth of an underdeveloped
country into a great and rich industrial state."


                         ***********


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

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           * * * End of Transmission * * *