TCRLA_Public/070508.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

             Tuesday, May 8, 2007, Vol. 8, Issue 90

                          Headlines

A R G E N T I N A

AGCO CORPORATION: Earns US$24.5 Million in Qtr. Ended March 31
AJ CHEDIEX: Claims Verification Deadline Moved to July 10
AUTOPISTAS DEL SOL: S&P Puts B- Rating on US$220-Mil. Notes
CONSTRUCCIONES RIAZOR: Claims Verification Is Until July 5
FLOWER POWER: Seeks Reorganization Okay in Buenos Aires Court

INDUSTRIAS BADAR: Reorganization Proceeding Concluded
KONINKLIJKE AHOLD: Sells USF Unit to Consortium for US$7.1 Bil.
NETMEDI SA: Proofs of Claim Verification Deadline Is July 11
PUENTES DEL LITORAL: Seeks Reorganization Approval in Court
RONDINA SRL: Proofs of Claim Verification Deadline Is June 29

SISTEMA DE VIGILANCIA: To Present Settlement Plan in Feb. 2008
SOL Y VALLES: Court Revokes Bankruptcy
SOMOS PEDIATRAS: Reorganization Proceeding Concluded
TELEFONICA HOLDING: S&P Withdraws B+ Corporate Credit Rating
VALEANT PHARMA: Elects G. Mason Morfit to Board of Directors

B A H A M A S

COGNIS GMBH: Intends to Raise EUR1.65 Billion Senior Sec. Notes
COGNIS GMBH: Moody's Lowers Rating to B2 on Increased Leverage
COGNIS GMBH: S&P Rates Proposed EUR250 Million Facility at BB-/1
ISLE OF CAPRI: Awaits Decision on NASDAQ Delisting Hearing

B R A Z I L

AMERICAN MEDICAL: Earns US$3.69 Million for First Quarter 2007
ARMOR HOLDINGS: Gets US$32-Mln Deal for Pinzgauer Vehicles in UK
BANCO NACIONAL: Authorizes US$200-Mil. Loan to Dofcon Navegacao
BANCO NACIONAL: Board Approves BRL313.7-Million Loan to Solvay
CAIXA ECONOMICA: Reduces Interest Rates on Loans

CHEMTURA CORP: Signs Sale Agreement with PERGAN for Peroxide Biz
DRESSER INC: Riverstone-Led Consortium Completes Takeover
DURA AUTOMOTIVE: Evaluates Strategic Alternatives for Atwood
MAUSER AG: Dubai Holding Acquires Firm from One Equity Partners
MAUSER AG: Sale Prompts S&P to Place B Rating on Watch Negative

METSO CORPORATION: Reports First Quarter Financial Results
NORTEL NETWORKS: Invests US$5 Million in Irish Customer Center
PETROLEO BRASILEIRO: Starts Shipping Ethanol to U.S.
SOLECTRON CORP: Fitch Affirms BB- Issuer Default Rating
XERIUM TECHNOLOGIES: Secures Amendment to Existing Credit Pact

C A Y M A N   I S L A N D S

ACORN FUND: Proofs of Claim Filing Deadline Is May 30
AVON LTD: Sets Final Shareholders Meeting for May 30
BEAR STEARNS: Will Hold Final Shareholders Meeting on May 30
CIRCLE K: Sets Final Shareholders Meeting for May 30
EDWARDS (CAYMAN): Moody's Puts (P)Ba1 Rating on US$100-Mil. Debt

EDWARDS (CAYMAN): S&P Puts BB+ Rating on US$100MM Proposed Debt
P RETOS: Will Hold Final Shareholders Meeting on May 10
P RETOS INVESTMENT: Sets Final Shareholders Meeting for May 10
P RETOS INVESTMENT III: Final Shareholders Meeting Is on May 10

C H I L E

GOODYEAR TIRE: Signs Tandy Brands as Auto Accessories Licensee
MILLIPORE CORP: Reports First Quarter Net Income of US$26.7 Mil.
SHAW GROUP: Subsidiary Provides Furnace Equipment to Petrokemya
SHAW GROUP: To Redeem Remaining US$15.2 Mln of 10-3/4% Sr. Notes

C O L O M B I A

MILLICOM INTERNATIONAL: Regulator Fines Tigo COP17.3 Million

C O S T A   R I C A

DENNY'S CORP: March 31 Balance Sheet Upside-Down by US$221 Mil.

D O M I N I C A N   R E P U B L I C

BANCO INTERCONTINENTAL: Defense Says US$20MM Spent on Pepe Card
BANCO MULTIPLE: Fitch Ups Issuer Default Rating to B- from CCC+
DELTA AIR: Offering One-Way Discount Fares to Dominican Republic
HANESBRANDS INC: Closing Three Plants; Cutting 1,400 Jobs

E C U A D O R

PETROECUADOR: Will Import Venezuelan Diesel to Supply Unit

E L   S A L V A D O R

AMERICAN AIRLINES: Pilots Union Seeks 30.5% Compensation Hike
AMERICAN AIRLINES: March 31 Balance Sheet Upside-Down by US$819M

* EL SALVADOR: To Ink Free Trade Accord with Taiwan & Honduras

G U A T E M A L A

TECO ENERGY: Ups Dividend Payment to 19.5 Cents Per Share

H O N D U R A S

* HONDURAS: To Ink Free Trade Accord with Taiwan & El Salvador

J A M A I C A

CABLE & WIRELESS: Launches Calling Plans & Handset Sale
DYOLL INSURANCE: Coffee Farmes Receive US$60 Million in Payment

M E X I C O

AMERICAN TOWER: Subsidiary Completes US$1.75-Billion Offering
BALDOR ELECTRIC: Net Profit Rises to US$21 Mil. in First Quarter
BALLY TOTAL: Don Kornstein Replaces Barry Elson as Acting CEO
CASINO GUICHARD-PERRACHON: Creates Colombian JV with Cencosud SA
CLEAR CHANNEL: Board Rejects New Terms of Buyout Offer

CLEAR CHANNEL: Provides Additional Updates on Radio Divestitures
COINSTAR INC: S&P Raises Corporate Credit Rating to BB from BB-
ENTRAVISION COMMS: Posts US$3.1 Mil. Net Loss in 2007 First Qtr.
FEDERAL-MOGUL: Creditors Vote to Accept Fourth Amended Plan
FENDER MUSICAL: S&P Assigns B+ Rating on US$200-Mil. Term Loan

GRUPO IMSA: Ternium Takeover Deal Cues S&P's CreditWatch Action
INTERTAPE POLYMER: Inks Pact Selling Stake to Littlejohn Fund
VITRO SAB: Reports Six Percent Rise on Consolidated Sales
WCM BETEILIGUNGS: CURA Seniorencentrum Buys 71.8% Maternus Stake

P A N A M A

AMERICAN AIRLINES: Launches New Service with Cable & Wireless
CABLE & WIRELESS: Launches New Service with American Airlines

* PANAMA: S&P Revises BB Sovereign Rating Outlook to Positive

P E R U

GRUPO MEXICO: Peruvian Unit's Miners End Eight-Day Strike

U R U G U A Y

ADMINISTRACION NACIONAL: S&P Revises Outlook to Positive
BANCO BILBAO: S&P Affirms B+/B Counterparty Credit Rating
CITIBANK (URUGUAY): S&P Affirms B+/B Counterparty Credit Rating
DISCOUNT BANK: S&P Affirms B+/B Counterparty Credit Rating

* URUGUAY: S&P Revises B+ Sovereign Rating Outlook to Positive

V E N E Z U E L A

ARVINMERITOR INC: Incurs US$13 Million Second Quarter Net Loss
ARVINMERITOR INC: Posts US$94 Million Loss for Q2 Ended Mar. 31
CITGO PETROLEUM: Restarts Aromatics Unit at Corpus Christi Plant
DAIMLERCHRYSLER: Chrysler Sales Up 17% -- Best April in 10 Years
GLOBAL CROSSING: Impsat Merger Gets Regulator's Approval

IMPSAT FIBER: Global Crossing Merger Gets Regulator's Approval
PETROLEOS DE VENEZUELA: Eni, PetroCanada & Opic Surrender Fields

* VENEZUELA: President Chavez Wants to Avoid Seizing Sidor

* BOOK REVIEW: Business Wit & Wisdom


                         - - - - -


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


AGCO CORPORATION: Earns US$24.5 Million in Qtr. Ended March 31
--------------------------------------------------------------
AGCO Corporation reported net income of US$0.26 per share for
the first quarter of 2007.  For the first quarter of 2006, AGCO
reported net income of US$0.19 per share.  Net sales for the
first quarter of 2007 were US$1.3 billion, an increase of
approximately 14% compared to the same period in 2006.

"Strong performance from our South American operations
contributed to our results in the first quarter," stated Martin
Richenhagen, Chairman, President and Chief Executive Officer.  
"The improving conditions in the Brazilian agricultural
machinery market fueled sales growth of approximately 34% in our
South American business.  The additional sales volume allowed us
to leverage the improvements we have made in our cost structure
in South America, resulting in double-digit operating margins
for the region.  We saw sales growth in both our Massey Ferguson
and Valtra brands, which when combined, have a leading market
position in Brazil.  The strength of our full product lines and
our superior dealer networks has us well positioned in this
important region.  In addition, our first quarter earnings
benefited from lower net interest costs resulting from our
improved net debt position."

"The quarter also was marked by the initial production in Europe
of the new Fendt 900 series high horsepower tractors," Mr.
Richenhagen continued.  "This launch reinforces Fendt's role as
a pioneer in agricultural engineering and superior design.  As
previously discussed, our controlled roll-out of the new high
horsepower tractor model impacted our sales mix in the first
quarter of 2007 and resulted in lower margins in our
Europe/Africa/Middle East segment.  Strong performance by our
Massey Ferguson and Valtra brands in Europe partially offset the
weaker sales mix and supplier constraints experienced at Fendt.  
The 900 series is being well received by our customers, and we
expect strong sales and improved margins in our European
business for the remainder of 2007."

                    First Quarter Results

Net sales for the first quarter of 2007 increased approximately
14% to US$1,332.6 million compared to US$1,169.8 million for the
first quarter of 2006.  For the first quarter of 2007, AGCO
reported net income of US$24.5 million, or US$0.26 per share.  
For the first quarter of 2006, AGCO reported net income of
US$17.3 million, or US$0.19 per share.  Adjusted net income,
excluding restructuring and other infrequent expenses, was
US$17.4 million, or US$0.19 per share, for the first quarter of
2006.

AGCO's net sales, excluding the impact of currency translation
of US$75.6 million, increased approximately 7.5% in the first
quarter of 2007 compared to the same period in 2006.  Net sales
increased in all four of AGCO's geographical segments, with the
strongest sales increase in South America where improved market
conditions in Brazil led to higher sales.  European sales
increased due to strong growth in Scandinavia, Finland and the
United Kingdom, partially offset by weaker sales in Germany.  In
North America, net sales increased slightly in 2007 compared to
2006 consistent with the moderate increase in industry demand.  
Sales were slightly higher in AGCO's Asia/Pacific region despite
soft market conditions.

For the first quarter of 2007, income from operations increased
approximately US$1.7 million compared to 2006 resulting from the
increase in net sales.  First quarter gross margins were below
2006 due to brand and product mix. Unit production of tractors
and combines for the first quarter of 2007 was approximately 5%
above 2006 levels.

In AGCO's Europe/Africa/Middle East region, income from
operations decreased approximately US$4.2 million in the first
quarter of 2007 compared to 2006 due to a weaker sales mix and
lower operating margins caused by the phasing of the new Fendt
900 series production, as well as supplier constraints in
Germany that limited sales in the first quarter.  Growth from
the Massey Ferguson and Valtra brands contributed to a 5%
increase in net sales, excluding currency impact, and helped to
partially offset the operating income decline.

Income from operations in AGCO's South America region increased
approximately US$8.5 million for the first quarter of 2007
compared to 2006. Industry demand in South America was above
2006 levels, resulting in an increase in AGCO's net sales in
South America, excluding currency impact, of approximately 30%
for the first quarter of 2007.  Operating margins increased
approximately 2.5% in the first quarter of 2007 compared to the
first quarter of 2006.  Higher sales volumes combined with
ongoing process improvements and cost reduction initiatives
provided favorable operating leverage.

In North America, income from operations decreased approximately
US$1.9 million in the first quarter of 2007 compared to 2006.  
Income from operations in the first quarter of 2007 was lower
primarily due to negative currency impacts on products sourced
from Brazil and Europe, partially offset by sales growth.

Income from operations in the Asia/Pacific region decreased
approximately US$0.6 million in the first quarter of 2007
compared to 2006.  The reduction in operating income was
primarily due to a weaker sales mix in Australia, where the
severe drought has resulted in lower sales of combines and high
horsepower tractors.

                   Regional Market Results

North America -- Industry unit retail sales of tractors for the
first quarter of 2007 increased approximately 1% over the
comparable prior year period resulting from an increase in the
utility tractor segment largely offset by decreases in the
compact and high horsepower tractor segments.  Industry unit
retail sales of combines for the first quarter of 2007 increased
approximately 13% from the prior year period.  AGCO's unit
retail sales of tractors were lower and combines were higher in
the first quarter of 2007 compared to 2006.

Europe -- Industry unit retail sales of tractors for the first
quarter of 2007 increased approximately 3% compared to the prior
year period. Retail demand improved in most of the major markets
of Europe, but declined in Italy and Spain. AGCO's unit retail
sales for the first quarter of 2007 were higher when compared to
the prior year period.

South America -- Industry unit retail sales of tractors
increased approximately 25% and industry unit retail sales of
combines increased approximately 30% for the first quarter of
2007 compared to the prior year period.  Unit retail sales of
tractors and combines in the major market of Brazil increased
approximately 31% and 57%, respectively, during the first
quarter of 2007 compared to 2006.  AGCO's South American unit
retail sales of tractors and combines also increased in the
first quarter of 2007 compared to 2006.

Rest of World Markets -- Outside of North America, Europe and
South America, AGCO's net sales for the first quarter of 2007
were approximately 28% higher than 2006 due to higher sales in
Africa and Asia.

"Strong commodity prices supported industry demand across much
of the globe in the first quarter," stated Mr. Richenhagen.  "In
Europe, industry retail sales are benefiting from higher farm
income in 2006 and the continuing strong growth in Eastern and
Central Europe.  In North America, higher commodity prices and
improving farmer sentiment contributed to modest improvement in
retail demand in the first quarter.  The sugar cane sector
remains strong in Brazil, and a better grain harvest has
increased industry demand."

                           Outlook

Industry retail sales of farm equipment in 2007 in all major
markets are expected to be flat or above 2006 levels.  In North
America, 2007 farm income is expected to increase slightly as
the benefit of strong commodity prices is offset by higher input
costs and lower government subsidies.  As a result, sales of
farm equipment in 2007 are also expected to increase slightly.  
Improved farm income in Brazil is expected to support an
increase in industry sales this year. However, high levels of
farmer debt, especially in the mid-west region, could impact
Brazilian demand for the remainder of 2007.  Industry demand in
Europe is expected to be relatively flat compared to 2006 with
growth in Central and Eastern Europe offsetting small declines
in Western Europe.

AGCO's net sales for the full year of 2007 are expected to grow
8% to 9% compared to 2006, driven primarily by improving market
conditions in South America, continued growth in Europe and
currency impacts.  For the full year, AGCO is targeting earnings
per share of approximately US$1.45 with earnings improvements
resulting primarily from sales growth and lower interest costs.  
The earnings target continues to include investments in the form
of increased engineering expenses, plant restructurings, system
initiatives, new market development, and distribution
expenditures, all of which support the Company's strategic
direction.  In addition, ongoing working capital initiatives are
expected to produce strong cash flow.

                       About Agco Corp.

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

                        *     *     *

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


AJ CHEDIEX: Claims Verification Deadline Moved to July 10
---------------------------------------------------------
Graciela Elena Lisarrague, the court-appointed trustee for A.J.
Chediex S.R.L.'s bankruptcy proceeding, verifies creditors'
proofs of claim until July 10, 2007.

As reported in the Troubled Company Reporter-Latin America on
April 16, 2007, the claims verification deadline was initially
set for Aug. 7, 2007.

Ms. Lisarrague will present the validated claims in court as
individual reports on Sept. 5, 2007.  The National Commercial
Court of First Instance No. 12 in Buenos Aires, with the
assistance of Clerk No. 24, 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 A.J. Chediex 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 A.J. Chediex's
accounting and banking records will be submitted in court on
Oct. 18, 2007.

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

The debtor can be reached at:

          A.J. Chediex SRL
          Cordoba 2959          
          Buenos Aires, Argentina

The trustee can be reached at:

          Graciela Lissarrague
          Tte. Gral. J.D. Peron 1509
          Buenos Aires, Argentina


AUTOPISTAS DEL SOL: S&P Puts B- Rating on US$220-Mil. Notes
-----------------------------------------------------------
Standard & Poor's Ratings Services assigned a 'B-' corporate
credit rating to Autopistas del Sol S.A. aka Ausol.  At the same
time, Standard & Poor's assigned a 'B-' foreign currency rating
to the company's upcoming issuance for up to US$220 million
notes with final maturity in 2017.  The outlook is stable.
     
Proceeds from the notes will be devoted to refinance existing
indebtedness, through these operations:

     -- A cash tender offer for all the company's notes with
        final maturity in 2009 (approximately US$119 million
        outstanding as of Dec. 31, 2006) at US$93 per US$100
        of principal amount; and

     -- An exchange offer (up to a maximum of 50%) for the
        company's notes with final maturity in 2014
        (approximately US$215 million outstanding as of
        Dec. 31, 2006) at an exchange price that will depend
        on the yield of the new notes to be issued.
     
While Ausol had already restructured its debt in 2004 and
adjusted its maturity profile, the lack of a final agreement
regarding the concession contract and a tariff increase that is
not enough to face the current debt maturity schedule has
resulted in a deterioration of Ausol's creditworthiness in
recent years.  In Standard & Poor's opinion, absent the current
refinancing, Ausol would face increasing difficulties to comply
with a growing debt amortization profile starting in 2007.  In
this context, and according to Standard & Poor's criteria, it
considers the cash tender offer as tantamount to default,
despite the significant financial relief that it will provide to
the company.  As a result, once the tender offer is completed,
Standard & Poor's expect to downgrade Ausol's corporate credit
rating to selective default or SD and to immediately raise it
back to 'B-', reflecting Standard & Poor's forward-looking
assessment of the company's credit quality.
    
As of Dec. 31, 2006, Ausol's total debt was US$338 million.  
"The ratings on Ausol reflect high regulatory risk, the
uncertainties the company still faces related to the full
renegotiation of its concession contract, high leverage,
significant mismatch between revenues (in Argentine pesos) and
financial debt (100% dollar denominated), and a small tail for
refinancing since the rated notes are expected to mature in 2017
and Ausol's concession ends in 2020," said Standard & Poor's
credit analyst Luciano Gremone.  Partially offsetting these
factors, traffic in the concession is growing at high rates in
line with economic growth, and the company would face a more
favorable debt maturity schedule once the refinancing
transactions are completed.
     
The stable outlook reflects the company's manageable debt
maturity profile in the next three to four years after
concluding the refinancing transactions.  Rating upside is
limited at this point, and would require a significant reduction
in the company's leverage and/or a favorable renegotiation of
the concession contract.  Ratings could come under pressure,
however, as a result of a significant devaluation of the
Argentine peso (which Standard & Poor's currently do not
anticipate) or if the renegotiation of the concession contract
does not show progress by year-end 2008.

Autopistas del Sol S.A. is a toll-road operator in Argentina.


CONSTRUCCIONES RIAZOR: Claims Verification Is Until July 5
----------------------------------------------------------
Beatriz Dominguez, the court-appointed trustee for
Construcciones Riazor S.A.'s bankruptcy proceeding, verifies
creditors' proofs of claim until July 5, 2007.

Ms. Dominguez will present the validated claims in court as
individual reports on Sept. 7, 2007.  The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Construcciones Riazor 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 Construcciones
Riazor's accounting and banking records will be submitted in
court on Oct. 19, 2007.

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

The trustee can be reached at:

          Beatriz Dominguez
          Avenida Rivadavia 2151
          Buenos Aires, Argentina


FLOWER POWER: Seeks Reorganization Okay in Buenos Aires Court
-------------------------------------------------------------
Flower Power S.A. has requested for reorganization in the
National Commercial Court of First Instance in Buenos Aires
after failing to pay its liabilities.

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

The debtor can be reached at:

          Flower Power S.A.
          Honduras 4900
          Buenos Aires, Argentina


INDUSTRIAS BADAR: Reorganization Proceeding Concluded
-----------------------------------------------------
Buenos Aires-based Industrias Badar S.R.L. concluded its
reorganization process, according to data released by Infobae on
its Web site.  The conclusion came after the city's National
Commercial Court of First Instance homologated the debt plan
signed between the company and its creditors.

The debtor can be reached at:

         Industrias Badar S.R.L.
         Melincue 4254
         Buenos Aires, Argentina


KONINKLIJKE AHOLD: Sells USF Unit to Consortium for US$7.1 Bil.
---------------------------------------------------------------
Koninklijke Ahold N.V. reached a definitive agreement on the
sale of U.S. Foodservice to a consortium of Clayton, Dubilier &
Rice Fund VII, L.P. and Kohlberg Kravis Roberts & Co L.P. for a
purchase price of US$7.1 billion.

Closing of the transaction is expected in the second half of
2007 subject to the fulfillment of customary conditions,
including anti-trust clearance and approval by Ahold's
shareholders.

Both the Supervisory Board and Corporate Executive Board of
Ahold are recommending that shareholders approve the sale.
Shareholder approval will be sought at an Extraordinary General
Meeting to be held on June 19, 2007.  More detailed information
on the transaction will be made available to shareholders ahead
of this meeting.

"I am extremely pleased to be able to announce that we have
reached this important milestone for U.S. Foodservice, for Ahold
and for our shareholders," Anders Moberg, Ahold President & CEO,
said.  "We have focused on restructuring U.S. Foodservice,
strengthening its capabilities and restoring profitability. The
agreement we have been able to reach with CD&R and KKR is the
result of the hard work and dedication of everyone at U.S.
Foodservice."

                         About Ahold

Headquartered in Amsterdam, Koninklijke Ahold N.V. --
http://www.ahold.com/-- retails food through supermarkets,  
hypermarkets and discount stores in North and South America,
Europe.  It has operations in Argentina.  The company's chain
stores include Stop & Shop, Giant, TOPS, Albert Heijn and
Bompreco.  Ahold also supplies food to restaurants, hotels,
healthcare institutions, government facilities, universities,
stadiums, and caterers.

                        *     *     *

As reported on Dec. 22, 2006, Standard & Poor's Ratings Services
revised its outlook on the Dutch food retailer and food service
distributor Koninklijke Ahold N.V. to positive from stable.  At
the same time, the 'BB+/B' long- and short-term corporate credit
ratings were affirmed.

Moody's Investors Service and Standard and Poor's has assigned
low-B ratings to the company's 5.625% senior notes due 2007.
Also, the company's 5.875% senior unsubordinated notes due 2008
and 6.375% senior unsubordinated notes due 2007 carry Moody's,
S&P's and Fitch's low-B ratings.


NETMEDI SA: Proofs of Claim Verification Deadline Is July 11
------------------------------------------------------------
Bernardino Margolis, the court-appointed trustee for Netmedi
S.A.'s bankruptcy proceeding, verifies creditors' proofs of
claim until July 11, 2007.

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

Infobae did not state the reports submission date.

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

The trustee can be reached at:

          Bernardino Margolis
          Parana 426
          Buenos Aires, Argentina


PUENTES DEL LITORAL: Seeks Reorganization Approval in Court
-----------------------------------------------------------
Puentes del Litoral S.A. has requested for reorganization before
the National Commercial Court of First Instance in Buenos Aires
after failing to pay its liabilities.

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

The debtor can be reached at:

          Puentes del Litoral S.A.
          Avenida Roque Saenz Pena 832
          Buenos Aires, Argentina


RONDINA SRL: Proofs of Claim Verification Deadline Is June 29
-------------------------------------------------------------
Ernesto Horacio Garcia, the court-appointed trustee for Rondina
S.R.L.'s bankruptcy proceeding, verifies creditors' proofs of
claim until June 29, 2007.

Mr. Garcia will present the validated claims in court as
individual reports on Aug. 29, 2007.  The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Rondina 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 Rondina's accounting
and banking records will be submitted in court on Oct. 11, 2007.

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

The trustee can be reached at:

          Ernesto Horacio Garcia
          Sarmiento 1587
          Buenos Aires, Argentina


SISTEMA DE VIGILANCIA: To Present Settlement Plan in Feb. 2008
--------------------------------------------------------------
Sistema de Vigilancia Privada S.R.L., a company under
reorganization, will present a settlement plan to its creditors
on Feb. 11, 2008.

Hugo Ricardo Robles, the court-appointed trustee for Sistema de
Vigilancia's reorganization proceeding, submitted individual
reports and presented individual reports out of the verified
claims in the National Commercial Court of First Instance in
Rosario, Santa Fe.  The court determined the verified claims'
admissibility, taking into account the trustee's opinion and the
objections and challenges raised by Sistema de Vigilancia and
its creditors.  Mr. Robles also presented a general report
containing an audit of Sistema de Vigilancia's accounting and
banking records in court.

The debtor can be reached at:

         Sistema de Vigilancia Privada S.R.L.
         Esteban de Luca 701
         Rosario, Santa Fe
         Argentina

The trustee can be reached at:

         Hugo Ricardo Robles
         San Martin 3209
         Rosario, Santa Fe
         Argentina


SOL Y VALLES: Court Revokes Bankruptcy
--------------------------------------
The National Commercial Court of First Instance in Salta has
revoked the bankruptcy of Sol y Valles S.A.

The debtor can be reached at:

         Sol y Valles S.A.
         Sarmiento 544, San Fernando Del Valle de Catamarca
         Catamarca, Argentina


SOMOS PEDIATRAS: Reorganization Proceeding Concluded
----------------------------------------------------
Somos Pediatras S.A.'s reorganization proceeding has ended.  
Data published by Infobae on its Web site indicated that the
process was concluded after the National Commercial Court of
First Instance in Buenos Aires approved the debt agreement
signed between the company and its creditors.

The debtor can be reached at:

          Somos Pediatras S.A.
          Cuba 3359          
          Buenos Aires, Argentina


TELEFONICA HOLDING: S&P Withdraws B+ Corporate Credit Rating
------------------------------------------------------------
Standard & Poor's Ratings Services has withdrawn its 'B+' long-
term corporate credit and senior unsecured debt ratings on
Telefonica Holding de Argentina S.A. at the company's request.

"THA is a holding company whose main asset is its indirect
participation in Telefonica Argentina S.A., one of the two
largest telecom incumbents in Argentina," said Standard & Poor's
credit analyst Ivana Recalde.

Telefonica de Argentina S.A. is the incumbent local exchange
carrier in the southern region of Argentina providing local
service, long distance, broadband services, and dial-up Internet
access with revenues and EBITDA during 2006 of approximately
US$1,216 million and US$593 million, respectively.  Telefonica
S.A. of Spain controls, either directly or indirectly, 98% of
Telefonica de Argentina.  

Telefonica Holding de Argentina S.A. controls 50% of Cointel,
which in turn controls 64.8% of Telefonica de Argentina S.A.


VALEANT PHARMA: Elects G. Mason Morfit to Board of Directors
------------------------------------------------------------
Valeant Pharmaceuticals International' Board of Directors has
elected G. Mason Morfit to fill an open board position for a
term that expires at the 2008 Annual Stockholders Meeting.  Mr.
Morfit's election brings the company's board to eight members.

Robert A. Ingram, chairman, said, "We are very pleased to have
someone of Mason's caliber join our board.  He brings important
financial and business acumen, and his perspective as a major
stockholder will be invaluable to us."

Mr. Morfit is a partner with ValueAct Capital, an investment
management firm with US$5 billion in assets under management.  
ValueAct Capital currently is Valeant Pharmaceuticals' largest
stockholder and holds 13.2 million shares of the company's
common stock.  Prior to joining ValueAct Capital in 2001, Mr.
Morfit worked in equity research for Credit Suisse First Boston.  
Mr. Morfit currently serves as a director of MSD Ignition and is
a former director of Solexa, Inc.  He has a B.A. degree from
Princeton University and is a CFA charterholder.

"As a long-term stockholder, ValueAct Capital believes in the
company's exciting potential," stated Mr. Morfit.  "I look
forward to actively working together with the board and
management team to further enhance value for all stockholders."

Headquartered in Costa Mesa, California, Valeant Pharmaceuticals
International (NYSE:VRX) -- http://www.valeant.com/is a
research-based specialty pharmaceutical company that discovers,
develops, manufactures and markets products primarily in the
areas of neurology, infectious disease and dermatology.  The
company has offices in Argentina.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 5, 2007, Standard & Poor's affirmed its ratings on Costa
Mesa, California-based Valeant Pharmaceuticals International,
including the 'B+' corporate credit rating.  The ratings were
removed from CreditWatch, where they were placed with negative
implications Oct. 24, 2006, to reflect the ongoing uncertainty
at that time regarding the company's inability to file its Form
10-Q for the third quarter and the possibility that all of its
debt obligations would have been accelerated.




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


COGNIS GMBH: Intends to Raise EUR1.65 Billion Senior Sec. Notes
---------------------------------------------------------------
Cognis GmbH intends to access the debt capital markets to raise
EUR1.65 billion Senior Secured Floating Rate Notes and Loans, in
addition to a EUR250 million revolving credit facility.

Goldman Sachs and JP Morgan have been mandated to lead the
refinancing, with investor roadshow events being held by the
Cognis in London over the coming days.

The refinancing will enable Cognis to take advantage of current
favorable market conditions, reducing the overall cost of
capital.  No proceeds will be used to finance a payment to the
existing private equity sponsors.  

In addition, the company disclosed that bondholders representing
94.3% of the outstanding principal amount of the existing 9.5%
Senior Notes due 2014 have granted consent in conjunction with
the consent solicitation launched on April 25, and thus the
proposed waivers and amendments have been approved.

The consent solicitation sought to:

   -- amend certain provisions of the indenture dated
      May 13, 2004;

   -- waive certain provisions of the indenture;

   -- authorize the release of the security and guarantees set
      forth in the indenture; and

   -- replace the existing intercreditor agreement dated
      May 13, 2004.

Headquartered in Monheim, Germany, Cognis GmbH --
http://www.cognis.com/-- is a leading global manufacturer of  
natural-oil based specialty chemicals products.  It employs
about 8,000 people, and it operates production sites and service
centers in 30 countries, including Antigua and Barbuda,
Argentina and Bahamas in Latin America.

The company holds a 50-percent stake in the joint venture Cognis
Oleochemicals, one of the world's leading manufacturers of
natural-source oleochemical basestocks.

Cognis is owned by private equity funds advised by Permira, GS
Capital Partners, and SV Life Sciences.


COGNIS GMBH: Moody's Lowers Rating to B2 on Increased Leverage
--------------------------------------------------------------
Moody's Investors Service downgraded Cognis GmbH corporate
family rating to B2 and Probability of Default rating for the
group to B2.  Moody's also downgraded the senior notes due 2014
to Caa1 and revised LGD assessment at LGD5 (88%).

At the same time, Moody's assigned a rating of (P)B1, LGD3 (44%)
to the proposed senior secured floating rate notes and loans
(expected to rank pari passu with each other and have equal
terms and conditions) and a rating of (P)Ba2, LGD1 (4%) to the
proposed revolving credit facility.

The ratings on the existing first lien senior secured bank
facilities and second lien senior notes and loans of Cognis
Deutschland GmbH & Co. KG will be withdrawn following the
completion of the proposed refinancing.  The outlook is stable.

Moody's issues provisional ratings in advance of the final sale
of securities, and these ratings only represent Moody's
preliminary opinion.  Upon a conclusive review of the
transaction and associated documentation, Moody's will endeavor
to assign definitive ratings to the securities.  A definitive
rating may differ from a provisional rating.

Moody's one notch downgrade of the corporate family rating
reflects the increase in leverage and cash interest costs
associated with the debt located within the rated Cognis GmbH
group following the partial repayment of the 2015 PIK notes.  
While the consent of the holders of the 2014 senior notes to the
partial repayment of the PIK notes was secured through an one-
off waiver and leaves the ring fencing arrangements restricting
the upstreaming of cash from Cognis GmbH to its parent Cognis
Holding GmbH in place, Moody's notes that the refinancing
exercise will result in some material deterioration in the
credit metrics of the rated group.  Despite assuming that Cognis
will continue to report a relatively robust operating
performance in line with its 2006 results, Moody's expects that
the group's adjusted gross debt to EBITDA ratio will remain
close to 6x in the near to medium term.

This rating action concludes the review for downgrade that was
initiated on 25 April 2007 following the company's announcement
of the consent solicitation under the 2014 9.5% senior notes to
allow refinancing of its senior secured first lien and second
lien obligations and a portion of the 2015 PIK notes.

These ratings of Cognis GmbH have been affected by the press
release:

   -- Corporate Family rating -- B2/PDR B2;

   -- Senior secured 2014 notes -- Caa1/LGD 5(88%);

   -- Senior secured floating rate notes and loans -- (P)B1/
      LGD3 (44%)

   -- Revolving credit facility -- (P)Ba2, LGD1 (4%)

Moody's does not rate senior PIK notes at Cognis Holding GmbH.

Headquartered in Monheim, Germany, Cognis GmbH --
http://www.cognis.com/-- is a leading global manufacturer of  
natural-oil based specialty chemicals products.  It employs
about 8,000 people, and it operates production sites and service
centers in 30 countries, including Antigua and Barbuda,
Argentina and Bahamas in Latin America.


COGNIS GMBH: S&P Rates Proposed EUR250 Million Facility at BB-/1
----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB-' senior
secured debt rating and a recovery rating of '1' to the proposed
EUR250 million revolving credit facility to be issued by Cognis
GmbH, indicating the expectation of full recovery of principal
in the event of a payment default.  

At the same time, Standard & Poor's assigned its 'B' senior
secured debt rating and a recovery rating of '3' to the
company's proposed EUR1.65 billion senior secured debt, which
comprise floating rate notes and senior secured loans,
indicating the expectation of meaningful recovery of principal.

The proposed issues will be used to refinance existing first-
and second-lien debt as well as to repay up to EUR350 million of
the payment-in-kind notes issued by Cognis Holding GmbH.

The ratings on Cognis continue to reflect the company's exposure
to several markets undergoing significant structural changes,
such as oleochemicals and textile chemicals; high volatility in
natural and petrochemical raw-material prices; and difficulties
of fully passing on the higher costs to customers.  These
factors are partly mitigated by well-diversified specialty
chemicals operations with above-average exposure to consumer-
related sectors and backward integration into natural-based raw
materials.  This provides Cognis a competitive advantage under
the current high oil price levels.
  
                        Recovery Analysis

The proposed EUR250 million senior secured revolving credit
facility is rated 'BB-', two notches above the corporate credit
rating, with a recovery rating of '1', indicating Standard &
Poor's expectation of full recovery of principal in the event of
a payment default.

The proposed EUR1.65 billion senior secured debt comprising
floating rate notes and loans is rated 'B', at the same level as
the corporate credit rating, with a recovery rating of '3',
indicating our expectation of meaningful recovery in the event
of a payment default.  The '3' recovery rating assumes that
loss-sharing provisions in respect of senior secured loans
borrowed by subsidiaries of Cognis are upheld such that lenders
of senior secured debt in both loan and note form rank pari
passu on enforcement of recovery proceeds.

Senior secured lenders to the revolving credit facility and
senior secured debt are expected to benefit from charges over
tangible assets where available--primarily from German, U.S.,
and French entities -- in addition to share pledges and
guarantees from material companies in the group.  The lenders to
the senior secured loans and notes will rank pari passu although
behind lenders to the revolving credit facility on enforcement.  
Guarantees are provided by group companies accounting for at
least 70% of the group's total assets and adjusted EBITDA.

Should the corporate tax reform that is currently under
discussion in Germany be resolved with a detrimental tax effect
for Cognis, security and subsidiary guarantees may be released
and cease to secure the senior secured debt of the company.  At
that point security would only consist of a Cognis share pledge,
and the recovery ratings would be reviewed.

The group's operations are located in a number of jurisdictions-
-although about 80% of sales are generated in Western Europe and
North America--so cross-jurisdictional issues and legal
restrictions could affect the enforceability or ultimate value
of certain guarantees.  Senior secured documentation contains
nonfinancial covenants standard for "covenant-light"
transactions, including limitations on additional indebtedness,
liens, disposals, mergers, consolidations, sale-and-lease-back
transactions, and dividend payouts. In addition, the revolving
credit facility includes a financial covenant restricting total
drawn revolver debt to no more than 1.5x consolidated cash flow.

To calculate recoveries, Standard & Poor's simulates a default
scenario.  It used an enterprise valuation approach supported by
Cognis' satisfactory business profile as the leading worldwide
manufacturer of natural-based specialty chemicals and
intermediates and a midsize producer of synthetic specialty
chemicals.

Standard & Poor's simulated default scenario assumes a potential
combination of these factors:

   -- Four years of revenue decline at a compound annual growth
      rate of 2%, as a result of overall weakness in economy and
      insufficient innovation.

   -- Pressure on gross margins due to raw material price
      volatility and an inability to pass the raw material price
      increases on to customers.

   -- Working capital increase driven by weakened negotiation
      power in the unfavorable market conditions.

   -- Higher interest costs to account for possible base rate
      increase and to secure covenant waivers.

   -- Effective tax rate of 35%.

Under S&P's default scenario, a payment default is unlikely to
occur before early 2010, at which point the outstanding amount
of senior debt that would have to be covered is estimated at
about EUR1.9 billion, assuming the revolving credit facility is
fully drawn.  Using primarily a discounted cash flow analysis,
the enterprise value at the point of default is reduced by
priority obligations, comprising enforcement costs, Henkel
pension fund contributions, finance leases, and other bank
borrowings.  This provides coverage of more than 100% for the
senior secured revolving credit facility, resulting in a
recovery rating of '1', and of meaningful coverage for the
senior secured term loan facilities, resulting in a recovery
rating of '3'.  The senior secured debt rating is not notched
down from the corporate credit rating, reflecting our
expectation that, from a recovery perspective, debtholders would
benefit meaningfully from the security package, despite their
second-ranking position on the proceeds of enforcement.

Headquartered in Monheim, Germany, Cognis GmbH --
http://www.cognis.com/-- is a leading global manufacturer of  
natural-oil based specialty chemicals products.  It employs
about 8,000 people, and it operates production sites and service
centers in 30 countries, including Antigua and Barbuda,
Argentina and Bahamas in Latin America.


ISLE OF CAPRI: Awaits Decision on NASDAQ Delisting Hearing
----------------------------------------------------------
Isle of Capri Casinos, Inc., reported that on April 26, 2007,
the company participated in a hearing before the NASDAQ Listing
Qualifications Panel resulting from the company's inability to
file its Quarterly Report on Form 10-Q by the March 9 due date,
as previously announced.
    
The company's failure to file its Form 10-Q for the third fiscal
quarter ended Jan. 28, 2007 by the March 9 due date, resulted
from the company's restatement of its financial statements for
the fiscal years ended April 25, 2004; April 24, 2005, and
April 30, 2006, and the quarterly results for fiscal 2005 and
2006 included therein, and for the first two quarters of fiscal
2007.  The failure to make a timely quarterly filing meant that
Isle of Capri Casinos is not in compliance with the filing
requirements for continued listing of its common stock on the
NASDAQ Global Select Market as set forth in Marketplace Rule
4310(c)(14).
    
On April 25, 2007, NASDAQ notified the company that the
Quarterly Report of Form 10-Q that the company filed on
April 18, 2007, did not cure the company's deficiency under
Marketplace Rule 4310(c)(14) because it had not been reviewed by
the company's independent auditors (pending completion of the
restatement).  The company expects to receive the decision of
the NASDAQ Listing Qualifications Panel within a few weeks,
regarding its request for an exception giving it time for its
auditors to complete their review and for the company to amend
the Quarterly Report on Form 10-Q to meet the requirements of
Marketplace Rule 4310(c)(14).  In the meantime, the company's
common stock will remain listed on the NASDAQ Global Select
Market.

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.




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


AMERICAN MEDICAL: Earns US$3.69 Million for First Quarter 2007
--------------------------------------------------------------
American Medical Systems Holdings Inc. reported US$3.69 million
in net profit on US$108.39 million in net revenues for the first
quarter ended Mar. 31, 2007, compared with US$11.47 million in
net profit on US$73.62 million in net revenues for the first
quarter ended April 1, 2006.

"As we previously communicated, internal production and planning
issues, along with the specific vendor quality issues we
experienced during the first quarter, resulted in both top and
bottom line disruption as we were not able to fulfill all orders
due to product availability challenges," Martin J. Emerson,
President and Chief Executive Officer, said.  "In addition,
manufacturing rework and warranty costs associated with our new
HPS laser console applied pressure to our gross margin during
the quarter.  I am confident that the vast majority of these
costs are behind us, and as we look forward, we will see the
type of gross margin expansion we had planned for 2007."

"While the first quarter was clearly a disappointment, we remain
confident in our ability to address our supply issues during the
second quarter," Mr. Emerson noted.  "The underlying strength of
demand across much of our business in the first quarter means we
are poised to see strong revenue performance as we exit the
second quarter."

At Mar. 31, 2007, American Medical Systems had US$1.09 billion
in total assets, US$795.2 million in total liabilities and
US303.89 million in stockholders' equity.

                           Outlook

The Company reiterated the full year 2007 revenue guidance of
US$475 million to US$500 million and reported earnings per share
from continuing operations of US$0.63 to US$0.70.

Revenue projected for the second quarter of 2007 ranges from
US$112 million to US$118 million, with an anticipated earnings
per share range of US$0.08 to US$0.11.  It is anticipated that
all supply issues will be resolved during the second quarter;
however, these projected results assume a level of recovery time
in the market.

               About American Medical Systems

Headquartered in Minnetonka, Mich., American Medical Systems
Inc. -- http://www.americanmedicalsystems.com/ -- develops and  
delivers pelvic health products for both men and women.  AMS has
operations in Australia, Austria, Brazil, Canada, Germany, The
Netherlands, France, Spain, Portugal, the United Kingdom, and
the U.S.A.

                        *     *     *

Moody's Investors Service confirmed its B1 Corporate Family
Rating for American Medical Systems Inc and revised its
Probability-Of-Default ratings and assigned Loss-Given-Default
ratings on these loans and bond debt obligations:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   Senior Secured
   Revolver due 2012      Ba3      Ba2     LGD2        22%

   Senior Secured
   Term Loan B
   due 2012               Ba3      Ba2     LGD2        22%


ARMOR HOLDINGS: Gets US$32-Mln Deal for Pinzgauer Vehicles in UK
----------------------------------------------------------------
Armor Holdings Inc. received an order valued at around
US$32 million for additional Pinzgauer Protected Patrol Vehicles
from the United Kingdom Ministry of Defense.

The Company stated that the new deliveries will be completed in
2007 with work performed at the Armor Holdings Aerospace and
Defense Group's Pinzgauer facilities located in Guildford,
Surrey U.K., with vehicle armoring support to be provided by the
Aerospace and Defense Group at its facilities located in
Fairfield, Ohio.

"We are pleased that the U.K. Ministry of Defense has placed a
second order for additional Pinzgauer model armored vehicles in
support of British deployed forces," Robert Schiller, President
of Armor Holdings, said.  "We believe this order also
underscores our success at integrating Armor Holdings' armoring
capability with an important light tactical vehicle program
acquired through the Stewart & Stevenson acquisition."

                      About Armor Holdings

Headquartered in Jacksonville, Florida, Armor Holdings Inc. --
http://www.armorholdings.com/-- manufactures and distributes  
security products and vehicle armor systems for the law
enforcement, military, homeland security, and commercial
markets.  The company has operations in Australia, England and
Brazil.

                        *     *     *

In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology, the rating agency confirmed its Ba3 Corporate
Family Rating for Armor Holdings Inc.

Additionally, Moody's affirmed its B1 ratings on the company's
2% Convertible Senior Subordinated Notes Due 2024 and 8.25%
Senior Subordinated Notes Due 2013.  Moody's assigned those
debentures an LGD5 rating suggesting noteholders will experience
a 77% loss in the event of default.


BANCO NACIONAL: Authorizes US$200-Mil. Loan to Dofcon Navegacao
---------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social said in a
statement that it has ratified a US$200-million loan to Dofcon
Navegacao to acquire two vessels for oil production activities.

Business News Americas relates that the vessels -- which will
support oil platform construction maintenance and inspection
work -- will be built by shipyard Aker Promar in Rio de Janeiro.

Banco Nacional will fund 90% of the amount required for the
project, BNamericas states.

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

                        *     *     *

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


BANCO NACIONAL: Board Approves BRL313.7-Million Loan to Solvay
--------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social aka BNDES'
board of directors approved a BRL313.7 million financing to
Solvay Indupa do Brasil S/A.  The funds will be destined to
expansion and modernization of its sodium chloride/chlorine
production of 106 thousand tons to 150 thousand tons/year of
chlorine, dichloroethene production to 460 thousand tons/year
and PVC production, from 267 thousand tons/year to 300 thousand
tons per year, besides environmental investments in its Santo
Andre unit and in social projects.

The project consists of PVC productive chain capacity expansion
and technologic and environmental modernization of company plant
facilities, with start foreseen for the first quarter 2009.  The
Bank support shall be equivalent to 72% of the total investment,
of BRL432 million.

BNDES financing will allow the company to attend the increasing
demand for PVC and caustic soda, replacing imports. Another of
the project merits is the technological update.  The company
will replace mercury, a polluting substance, by membrane cell,
raw material for the production of chlorine, which does not
impact the environment.  The investments will generate 700
employments during the construction period.

The environment investments include process preservation,
control, safety and improvements above all, with full
elimination of a potential risk and/or generation of solid
residues, liquid effluents and gas emissions related to the use
of the mercury cell technology.  In addition, they should reduce
the generation of industrial effluents and emissions in the
other units, also enabling reduced energy consumption.

The company will also implement a social investment program
aimed at plant neighboring communities, with expenditures around
BRL500 thousand per year.  Among these are environmental
education initiatives for school children and neighboring
communities, transformation of texts written by public high
school students in short-feature films, professional re-
qualification courses and environmental education program for
seniors, to mention just a few examples.

The Solvay group, a conglomerate headquartered in Brussels, has
been in the Country for 65 years.  Solvay Indupa do Brasil
supplies end products as PVC emulsion, caustic soda, sodium
hypochlorite and high-density polyvinyl chloride, and produces
intermediate products, as chloride, hydrochloric acid. Solvay's
market is mostly domestic.

                         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.


CAIXA ECONOMICA: Reduces Interest Rates on Loans
------------------------------------------------
Caixa Economica Federal has reduced the interest rates charged
on loans connected to sanitation and housing projects, Brazil's
government news agency Radiobras reports.

Business News Americas relates that Caixa Economica has cut
interest rates to 5% from 10% on loans to states, municipalities
or firms where they contribute equal amounts as that presented
by the workers' federal savings fund for sanitation projects.  
It also reduced interest rates to 6.5% from 8% on sanitation
works and home purchases carried out by individuals earning up
to BRL4,900 per month.

According to BNamericas, reductions on interest rates were done
as a means of providing support for the Brazilian government's
growth acceleration plan.  They have also been cut to come into
line with the labor ministry's figures, which indicated that
they were higher than market average.

"Our role on the FGTS [the workers' federal savings fund]
administrative council is to follow the government line and we
are following what has been established by the president of the
republic: reduce all forms of taxes and interest rates on all
types of loans," Labor Minister Carlos Lupi told BNamericas.

Apart from its commercial banking activities, Caixa Economica
Federal is responsible for executing policies in the areas of
housing and basic sanitation, the administration of social funds
and programs and federal lotteries.  Caixa Economica Federal is
Brazil's second largest financial institution and is the fourth
largest bank in Latin America.  According to a 2002 ranking of
Latin American banks undertaken by Caracas-based SOFTline, it
had US$36.3 billion (11.7%) in assets, deposits valued at
US$21.7 billion and loans worth US$7 billion as of 2002.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Sept. 4, 2006, Moody's Investors Service upgraded these ratings
of Caixa Economica Federal:

   -- long-term foreign currency deposits to Ba3 from Ba1; and

   -- long- and short-term global local currency deposit ratings
      to A1/Prime-1 from A3/Prime-2.

Moody's said the ratings outlook was stable.


CHEMTURA CORP: Signs Sale Agreement with PERGAN for Peroxide Biz
----------------------------------------------------------------
Chemtura Corporation has signed a definitive agreement to sell
its organic peroxides business to German organic peroxides maker
PERGAN GmbH in an all-cash transaction for an undisclosed
amount, in order to place greater focus on its core businesses.  
Included in the transaction will be Chemtura's Marshall, Texas
manufacturing facility.  The transaction, which requires the
approval of certain regulatory bodies, is expected to close
within 90 days.  Proceeds from the sale will be used primarily
for debt reduction.

"This sale is a small but important step in the restructuring of
our Plastic Additives portfolio," said Chemtura Chairman and CEO
Robert L. Wood.  "We are divesting product lines where we don't
have competitive advantage to better focus on areas where we
do."

"PERGAN, which already has organic peroxide facilities in
Germany and China, will gain a position in the North American
market through this transaction.  We are pleased to be
transferring this business to a buyer who is interested in
growing it, which should benefit both customers and Marshall
employees," Mr. Wood concluded.

The organic peroxides business being sold had revenues for 2006
of approximately US$20 million.  Chemtura employs approximately
40 people in its Marshall, Texas facility.

                      About PERGAN GmbH

PERGAN GmbH -- www.pergan.com. -- is a world-class supplier of
organic peroxides and other polymer additives to the polymer
production and processing industries.

                  About Chemtura Corporation

Headquartered in Middlebury, Connecticut, Chemtura Corp.
(NYSE:CEM) -- http://www.chemtura.com/-- is a global
manufacturer and marketer of specialty chemicals, crop
protection, and pool, spa and home care products.  The company
has approximately 6,400 employees around the world and sells its
products in more than 100 countries.  The company has facilities
in Singapore, Australia, China, Hong Kong, India, Japan, South
Korea, Taiwan, Thailand, Brazil, Belgium, France, Germany,
Mexico, and The United Kingdom.

                        *     *     *

In November 2006, Moody's Investors Service assigned a Ba1
rating to Chemtura Corp.'s US$400 million of senior notes due
2016 and affirmed the Ba1 ratings for its other debt and the
corporate family rating.


DRESSER INC: Riverstone-Led Consortium Completes Takeover
---------------------------------------------------------
Dresser, Inc. announced that a consortium led by Riverstone
Holdings LLC has completed the previously announced acquisition
of the company, which is a leader in providing highly engineered
infrastructure products to the global energy industry.

The company also announced that John P. Ryan, president and
chief operating officer, is replacing Patrick M. Murray as chief
executive officer.  Mr. Murray retired from his position
effective with the completion of the sale.

"The change in ownership of Dresser will be transparent to our
customers and employees-it's business as usual," said Mr. Ryan.  
"The Dresser name has been synonymous with the energy industry
for more than a hundred years, and our global presence, strong
brands and long-time reputation for reliability and service in
the energy industry will continue to serve us well in the
future.  Our new owners have considerable experience and
insights into the energy industry worldwide, and we look forward
to benefiting from the expertise they bring."

Riverstone is joined by First Reserve and Lehman Brothers Co-
Investment Partners in the investor group.  First Reserve
previously acquired Dresser in 2001 in partnership with Odyssey
Investment Partners and is investing in the current transaction
through its recently formed First Reserve Fund XI, L.P.  
Riverstone is investing through its Carlyle/Riverstone Global
Energy and Power Fund III, L.P.  The terms of the transaction
were not disclosed.

Commenting on his retirement, Mr. Murray noted, "Dresser is well
positioned to continue as a worldwide leader in the design,
manufacture and marketing of energy infrastructure equipment.  
John's promotion is decidedly well deserved.  His commitment to
continuous improvement, dedication to Dresser employees and
focus on the customer will serve the company well in the years
to come."

Mr. Ryan was appointed president and chief operating officer of
Dresser in December 2004.  He had previously served as president
of Dresser Wayne, the largest division of Dresser and a
worldwide leader in the retail fueling industry, from 1999 to
2005.  Prior to joining Dresser Wayne in 1987 as national
accounts sales manager, he served in various international and
domestic sales positions for Goulds Pumps Inc.

       About Riverstone Holdings LLC and The Carlyle Group

Riverstone Holdings LLC and The Carlyle Group are the co-general
partners of Carlyle/Riverstone Global Energy and Power Funds.  
Riverstone, a New York-based energy and power focused private
equity firm founded in 2000, has US$8.1 billion under
management.  Riverstone conducts buyout and growth capital
investments in the midstream, upstream, power, oilfield
services, and renewable sectors of the energy industry.  To
date, the firm has committed more than US$5.5 billion to more
than 36 investments across each of these five sectors,
representing companies with nearly US$40 billion of assets.  The
Carlyle Group is a global private equity firm with US$56 billion
under management.  Carlyle invests in buyouts, venture and
growth capital, real estate and leveraged finance in North
America, Europe and Asia. Since 1987, the firm has invested
US$26.4 billion of equity in 601 transactions.

                     About Dresser, Inc.

Based in Addison, Texas, Dresser, Inc. --
http://www.dresser.com/-- designs, manufactures and markets    
equipment and services sold primarily to customers in the flow
control, measurement systems, and compression and power systems
segments of the energy industry.  The company has a
comprehensive global presence, with over 8,500 employees and a
sales presence in over 100 countries worldwide including Brazil,
Mexico and Puerto Rico.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
April 16, 2007, Standard and Poor's Ratings Services affirmed
its 'B' corporate credit rating on Dresser Inc., based on the
expectation that the company's debt leverage will improve,
following its acquisition, to levels consistent with the ratings
over the medium term.  The outlook is negative.  At the same
time, the ratings on Dresser were removed from CreditWatch with
developing implications, where they were placed on
March 12, 2007.
     
Standard & Poor's also assigned its 'B' rating and '2' recovery
rating (indicating the expectation of substantial (80%-100%)
recovery of principal in the event of a payment default) to
Dresser's proposed US$1.3 billion first-lien bank facilities,
and its 'CCC+' rating and '5' recovery rating (indicating the
expectation of negligible (0%-25%) recovery of principal in the
event of a payment default) to Dresser's proposed US$750 million
second-lien bank facilities.


DURA AUTOMOTIVE: Evaluates Strategic Alternatives for Atwood
------------------------------------------------------------
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, Moody's believes 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 will expire on May 23.


MAUSER AG: Dubai Holding Acquires Firm from One Equity Partners
---------------------------------------------------------------
One Equity Partners LLC has agreed to sell its stake in MAUSER
AG to Dubai International Capital LLC, the international
investment arm of Dubai Holding.  The transaction values MAUSER
at EUR850 million.

DIC will further support the existing strategy pursued by the
management.  Its focus will remain on further growth, especially
into Asia.  

"This transaction is a win-win situation for all participants.  
MAUSER secures a solid long-term investor that gives us the
right backing to continue our successful growth strategy,"
Stefan Mueller-Arends, CEO of MAUSER AG, said.

In May 2003, OEP, an investment subsidiary of JP Morgan Chase &
Company Inc., acquired the industrial packaging specialist
MAUSER and supported the company's rapid development.  Since the
investment of OEP, the company's annual revenues have grown from
around EUR250 million to roughly EUR1 billion expected for 2007.  
MAUSER is a world market leader in industrial packaging with
approximately 3,700 employees operating in more than 50
locations across Europe, North America, Latin America and Asia.

At the end of 2006, MAUSER acquired the industrial packaging
business of Brazilian manufacturer Metalurgica Barra do Pirai
S.A., and extended its reach to Latin America.  This transaction
reflects the company's latest significant step towards growth
and internationalization.

"We are very pleased with [the] announcement," Sameer Al Ansari,
Executive Chairman and Chief Executive Officer of DIC, said.   
"As responsible long-term investors, we believe that this is an
excellent deal for both MAUSER and DIC, and we will continue to
back its successful growth strategy.  It is in line with DIC's
strategy that involves backing incumbent management and
investing in the businesses we acquire.  There is also plenty of
opportunity through growth, consolidation and integration
benefits for MAUSER's markets.

"Acquiring MAUSER is another important phase of expanding DIC's
European and international portfolio of diverse assets which
varies from the entertainment sector, to automotive, industrials
and hotels.  Looking ahead, DIC is an investor that has
considerable resources at our disposal, with over US$6 billion
of assets under management both internationally and in Europe."

The sale and purchase agreement is conditional upon receipt of
all appropriate anti trust approvals.

             About Dubai International Capital LLC

Established in 2004, Dubai International Capital LLC
-- http://www.dubaiic.com/-- is an international investment  
company.  It is a wholly owned subsidiary of Dubai Holding.

DIC's investments have included: US$1.23 billion acquisition of
Travelodge (U.K.), Britain's fastest growing hotel company, US$1
billion stake in DaimlerChrysler, one of the world's leading
carmakers and the US$1.2 billion acquisition of Doncasters Group
(U.K), an industrial manufacturing firm that produces precision
eng.ineering components across various industrial sectors.

DIC is also a substantial investor in the Middle East.  
Investments include Ishraq, a US$150 million investment company
that was formed to bring the Holiday Inn Express brand of hotels
to the Gulf Co-operation Council countries; and MENA
Infrastructure Fund, a US$500 million fund targeting investment
opportunities in infrastructure projects in the Middle East and
North Africa region.  In 2005, DIC launched Jordan Dubai
Capital, a US$300 million investment company that targets
private equity opportunities in the Jordanian economy.

                 About One Equity Partners LLC

One Equity Partners -- http://www.oneequity.com/-- manages  
billion of investments and commitments for J.P. Morgan Chase &
Company Inc. in direct private equity transactions.  Partnering
with management, OEP invests in transactions that initiate
strategic and operational changes in businesses to create long-
term value.  OEP's investment professionals are located across
North America and Europe, with offices in New York, Chicago and
Frankfurt.  Since its foundation in 2001, One Equity Partners
has been operating in Germany.  Its European Headquarters are
based in Frankfurt.  Its European investments include Sued-
Chemie AG, TK Marine Systems AG, Vacuumschmelze Hanau.

                         About Mauser AG

Headquartered in Bruehl, Germany, MAUSER AG --
http://www.mausergroup.com/-- provides rigid industrial  
packaging solutions for the petrochemical, chemical,
pharmaceutical and food & beverage industries with 3,700
employees and revenues of roughly  EUR1 billion expected for
2007.  MAUSER AG operates more than 50 locations in 13 countries
including Brazil in Latin America.


MAUSER AG: Sale Prompts S&P to Place B Rating on Watch Negative
---------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'B' long-term
corporate credit rating on Germany-based packaging manufacturer
Mauser AG and related entities on CreditWatch with negative
implications.

This follows the announcement that One Equity Partners LLC has
agreed to sell its stake in Mauser to Dubai International
Capital LLC, the international investment arm of Dubai Holding
LLC.   The transaction, which values Mauser at EUR850 million,
is subject to final approval by the relevant competition
authorities.  "Although the details of DIC's financing for this
acquisition have not been disclosed, the CreditWatch placement
reflects our concerns that it could potentially lead to
additional debt in Mauser's capital structure," said Standard &
Poor's credit analyst Izabela Listowska.

"We could lower the ratings if financial leverage materially
increases, but we would affirm the ratings if financial leverage
remained largely unchanged after the acquisition," said Ms.
Listowska.  "Under the latter scenario, we would then continue
to expect credit measures to strengthen, with adjusted debt to
funds from operations improving to more than 10% over the medium
term."

The Mauser group is aggressively leveraged following debt-funded
acquisitions and a recapitalization.  At Dec. 31, 2006, Mauser
had adjusted debt of about EUR661 million, including unfunded
pension liabilities of about EUR31 million, operating leases of
about EUR25 million, payment-in-kind notes of EUR215 million,
and unrestricted cash of EUR30 million.  In 2006, pro forma
adjusted debt to EBITDA was about 6.3x, and adjusted FFO to debt
below 10%, which is weak for the ratings.

The ratings reflect Mauser's highly leveraged capital structure
and its continuously aggressive financial policy, particularly
with regard to debt-funded acquisitions.  The ratings are
further constrained by the fairly mature and competitive
industry in which the group operates and Mauser's exposure to
raw material price fluctuations.  These factors are mitigated
by:

   -- competitive position in the industrial packaging
      industry

   -- focus on higher growth segments of the industry, such as
      plastic drums and containers and intermediate bulk
      containers

   -- and its good operating performance

Standard & Poor's will monitor the progress of the transaction
and will resolve the CreditWatch after a review of Mauser's
final capital structure and future financial policies.

Headquartered in Bruehl, Germany, MAUSER AG --
http://www.mausergroup.com/-- provides rigid industrial  
packaging solutions for the petrochemical, chemical,
pharmaceutical and food & beverage industries with 3,700
employees and revenues of roughly  EUR1 billion expected for
2007.  MAUSER AG operates more than 50 locations in 13 countries
including Brazil in Latin America.


METSO CORPORATION: Reports First Quarter Financial Results
----------------------------------------------------------
Metso Corporation reported earnings before interest, tax,
and amortization of EUR121.9 million or 8.9% of net sales
for the first quarter ended March 31, 2007, compared with
EUR99.9 million and 9.3% in the first quarter of 2006.  Net
sales were EUR1,366 million, a 27% increase from the same period
in 2006.  Operating income was EUR108.4 million, or 8.9% of net
sales, dropping 0.9% compared with the first quarter of 2006.  
Earnings per share were EUR0.50 as opposed to EUR0.47 the prior
year.

"Metso's January to March order intake was strong, and our order
backlog has further strengthened from the record-high year-end
figures," Metso President and CEO Jorma Eloranta said.  This,
together with the continuing favorable market outlook, gives us
confidence about the rest of the year and beyond.

Eloranta notes that Metso's financial performance was solid
despite seasonal factors that are typical for the first quarter.

"Our net sales grew significantly over the same period in 2006.  
Much of the growth is due to our expanded business scope, i.e.
the acquisition of the Pulping and Power businesses, but even
organically we delivered some 10% growth.  Also our operating
profit improved on the first quarter of 2006."

Eloranta says that Metso's outlook for 2007 continues to be
favorable.  "The financial performance for the rest of the year
is expected to be stronger than in the first quarter of 2007.  
Furthermore, we repeat our estimate that our net sales will grow
by more than 20% on 2006 and that the operating profit will
clearly improve."

                     Short-term outlook

The favorable market outlook for Metso's products and services
is expected to continue for the rest of 2007.

Metso Paper's market situation is estimated to continue much the
same as in the year's first quarter.  The demand for paper,
board and tissue machines and for fiber lines is expected to be
satisfactory.  The demand for power plants is estimated to be
good.  Also the demand for Metso Paper's aftermarket services is
expected to remain satisfactory.

Metso Minerals' favorable market outlook is expected to
continue.  The demand is anticipated to remain at the first
quarter's excellent level in the mining and metals recycling
industries, and at a good level in the construction industry.  
The demand for aftermarket services is expected to remain
excellent.

Metso Automation's market outlook in the pulp and paper customer
segment is estimated to be good. In the power, oil and gas
industries, the demand is expected to be good in process
automation systems and excellent in flow control systems.

It is estimated that Metso's financial performance for the rest
of the year will be stronger than in the first quarter.  Metso's
net sales in 2007 are estimated to grow by more than 20% on
2006, thanks to the strong order backlog, continuing favorable
market situation and the expanded business scope.

The operating profit in 2007 is estimated to clearly improve.  
It is estimated that the operating profit margin in 2007 will be
slightly below Metso's target, which is over 10%.  This is
primarily due to the high first-year amortization of intangible
assets, integration costs and only partially materializing
synergy benefits related to the acquisition of the Pulping and
Power businesses.

The estimates concerning financial performance are based on
Metso's current structure, order backlog and market outlook.

                         About Metso

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

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

                        *     *     *

As of Feb. 9, 2007, Metso Oyj carries Standard & Poor's 'BB+'
long-term and 'B' short-term corporate credit ratings and 'BB'
senior unsecured debt rating.


NORTEL NETWORKS: Invests US$5 Million in Irish Customer Center
--------------------------------------------------------------
Nortel Networks opened its new global Customer and Technology
Center at its Mervue campus in Galway, Ireland.  

Nortel has invested US$5 million in the new Center, which is
responsible for developing customer contact center applications
for markets around the world.  The opening also marks Nortel's
celebration of 25 years of research and development in the
Galway area.

The new Center is developing contact center solutions focused on
ensuring customer enquiries to businesses are answered as
quickly and efficiently as possible, incorporating multimedia
capabilities such as instant messaging and video.  The Center  
will also showcase applications that provide customers with the
opportunity to participate in demonstrations tailored
specifically for verticals markets such as healthcare, education
and finance.

At a Nortel Galway campus ceremony on Thursday, May 3, the
Center was officially opened by Frank Fahey, Teachta Dala,
Minister of State at the Department of Justice, Quality and Law
Reform.  The ceremony was attended by Darryl Edwards, president,
EMEA, Nortel as well as Nortel customers and employees.  Local
dignitaries and guests from Galway's business and political
communities also attended.

"This is a great day for Nortel and Galway because it
underscores the global importance of the role that the Galway
campus plays for the company," Mr. Edwards said in his remarks
at the Center's opening.  "The Technology and Customer Center is
part of our multi-million dollar investment in the region and
our talented Galway team."

"Nortel should be congratulated for its commitment to Galway
over the last 25 years," Minister Fahey said.  "Nortel has
developed rapidly since its arrival here and we are delighted
that its Irish-based operation is continuing to play a
key role in its global transformation.  [Thurs]'s opening speaks
volumes to the depth, quality, expertise and loyalty of the
Irish workforce in the West region."

Nortel began operations in Galway in 1973.  A research and
development team was established in 1982.  Today, its Galway
campus has global responsibility for one of Nortel's most
sophisticated technologies - multimedia contact centers.  The
solutions have enhanced customer service for companies worldwide
including: Lloyds TSB, Fossil and Guy's and St Thomas' NHS
Foundation Trust.

"Nortel in Ireland has evolved significantly over the past 25
years," Dave Quane, managing director for Nortel, Ireland, said.
"[Thurs]day's opening is testimony to the innovation and
expertise this facility is expected to deliver to Nortel."

                         About Nortel

Headquartered in Ontario, Canada, Nortel Networks Corporation
(NYSE/TSX: NT) -- http://www.nortel.com/-- is a recognized  
leader in delivering communications capabilities that enhance
the human experience, ignite and power global commerce, and
secure and protect the world's most critical information.
Serving both service provider and enterprise customers, Nortel
delivers innovative technology solutions encompassing end-to-end
broadband, Voice over IP, multimedia services and applications,
and wireless broadband designed to help people solve the world's
greatest challenges Nortel does business in more than 150
countries including the United Kingdom, Denmark, Russia, Norway,
Australia, Brazil, China, Singapore, among others.

                        *     *     *

Dominion Bond Rating Service confirmed the long-term ratings of
Nortel Networks Capital Corporation, Nortel Networks
Corporation, and Nortel Networks Limited at B (low) along with
the preferred share ratings of Nortel Networks Limited at Pfd-5
(low).  DBRS says all trends are stable.

DBRS confirmed B (low) Stb Senior Unsecured Notes; B (low) Stb
Convertible Notes; B (low) Stb Notes & Long-Term Senior Debt;
Pfd-5 (low) Stb Class A, Redeemable Preferred Shares; and Pfd-5
(low) Stb Class A, Non-Cumulative Redeemable Preferred Shares.

Additionally, Moody's Investors Service affirmed the B3
corporate family rating of Nortel; assigned a B3 rating to the
proposed US$2billion senior note issue; downgraded the US$200
million 6.875% Senior Notes due 2023 and revised the outlook to
stable from negative.

Standard & Poor's also affirmed its 'B-' long-term and 'B-2'
short-term corporate credit ratings on the company, and assigned
its 'B-' senior unsecured debt rating to the company's proposed
US$2 billion notes.  S&P said the outlook is stable.


PETROLEO BRASILEIRO: Starts Shipping Ethanol to U.S.
----------------------------------------------------
Brazilian state-owned oil firm Petroleo Brasileiro SA has begun
delivering ethanol to the United States, Brazilian daily O Globo
reports.

According to O Globo, a vessel carrying about 12,000 cubic
meters of ethanol left Rio Janeiro for the U.S.

Dow Jones Newswires relates that Petroleo Brasileiro will make
another shipment of 20,000 cubic meters of ethanol to the U.S.
this month.

Petroleo Brasileiro told Dow Jones that it should export about
850 million liters of ethanol this year to markets like US,
Nigeria, Venezuela and Japan.

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.


SOLECTRON CORP: Fitch Affirms BB- Issuer Default Rating
-------------------------------------------------------
Fitch Ratings has affirmed Solectron Corporation's ratings:

   -- Issuer Default Rating at 'BB-';
   -- Senior secured bank facility at 'BB+';
   -- Senior unsecured debt at 'BB-'; and
   -- Subordinated debt at 'B+'.

Fitch's actions affect approximately US$600 million in debt
securities.  The Rating Outlook is Stable.

The ratings and outlook reflect Fitch's expectations that:
Solectron's operating performance will remain stable with modest
revenue growth; the company will be challenged to materially
improve operating margins in the current market environment;
Solectron will maintain a conservative balance sheet with debt-
to-EBITDA of approximately 2x; and the electronics manufacturing
services or EMS industry will continue to face substantial and
occasionally intensely competitive pricing pressures, as vendors
struggle with excess capacity, and uneven end-market demand.

The ratings are supported by the company's: conservative capital
structure, evidenced by one of the lowest debt-to- EBITDA ratios
of any top-tier EMS provider; solid liquidity position; long-
term trends supporting additional penetration of the outsourcing
model; and Fitch's expectations that the larger and better
capitalized tier 1 EMS providers will benefit from OEM (original
equipment manufacturer) supplier consolidation over time.  
Ratings concerns center on competition from faster growing
original design manufacturers or ODMs and vertically integrated
competitors, particularly in high-volume/low-mix end-markets
with more attractive growth rates; the thin operating margins
and low return on invested capital associated with the EMS
industry despite providers' ongoing efforts to expand higher
margin service offerings; and significant exposure to slower
growing and more volatile traditional end-markets.

Fitch believes that a significant and sustained improvement in
profitability driven by a stabilization of the competitive
landscape within the EMS industry could lead to positive ratings
actions.  Conversely, Fitch believes that increased balance
sheet leverage and/or acquisition activity and the operational
risk inherent in such a strategy could lead to negative ratings
action.

As of March 2, 2007, liquidity was sufficient and supported by
approximately US$1.1 billion of unrestricted cash and cash
equivalents and an undrawn US$350 million senior secured
revolving credit facility expiring August 2009.  Total debt as
of March 2, 2007, was approximately US$641 million and consisted
primarily of US$450 million 0.5% convertible senior notes due
2034 and US$150 million 8% senior subordinated notes due 2016.

Headquartered in Milpitas, California, Solectron Corp.
(NYSE: SLR) -- http://www.solectron.com/-- provides a full   
range of worldwide manufacturing and integrated supply chain
services to the world's premier high-tech electronics companies.
Solectron's offerings include new-product design and
introduction services, materials management, product
manufacturing, and product warranty and end-of-life support.
The company operates in more than 20 countries on five
continents including France, Malaysia, and Brazil, among others.
It had sales from continuing operations of US$10.6 billion in
fiscal 2006.


XERIUM TECHNOLOGIES: Secures Amendment to Existing Credit Pact
--------------------------------------------------------------
Xerium Technologies, Inc., has secured an amendment to its
existing senior credit facility, amended its agreement with
certain shareholders with respect to the company's dividend
reinvestment plan, changed its dividend policy and reaffirmed
elements of its investment plan.  The company's Board of
Directors also declared a cash dividend under the new dividend
policy.

Thomas Gutierrez, Xerium Technologies' Chief Executive Officer,
said, "These steps together provide improved financial
flexibility to the company that we believe will enable us to
capitalize more aggressively on the long-term growth
opportunities while accelerating reduction of our debt and
improving our overall capital structure.  Given the additional
flexibility provided in part by the reduction in dividend, we
expect to pursue our previously-announced plans to build a
clothing manufacturing operation in Vietnam, fund additional
investments in our roll cover business, expand our presence in
South America and implement further actions aimed at reducing
our overall cost structure."

He added, "We are also exploring expansion opportunities in
Eastern Europe consistent with our efforts to continue to
improve our competitive position in the marketplace and better
serve the needs of our customers.  We have identified a
significant array of investment opportunities that we believe
would improve Xerium's growth profile and profitability over
time.  As such, we expect to continue to review our capital
structure and strategic alternatives to insure that we are
taking the best advantage of these opportunities."

The amendment to the credit facility includes, among other
changes, these changes:

    * Reduction of the minimum interest coverage ratio covenant
      for the period from the second quarter of 2007 through
      2012 and of the minimum fixed charge ratio covenant for
      the period from the second quarter of 2007 through 2012.

    * Changes to previously existing covenant limiting
      dividends to make it more restrictive and the insertion
      of a covenant limiting the quarterly dividend payable on
      common stock of the company to not more than US$0.1125
      per share in addition to the other restrictions on
      dividends.

    * Reduction of mandatory excess cash flow prepayment
      percentages in the event there is Excess Cash (as
      defined in the Credit Agreement) to 40% in fiscal
      year 2007, 27.5% in fiscal year 2008, and 50% in each
      fiscal year thereafter.

    * Changes to the definition of Adjusted EBITDA to add
      back Consolidated Restructuring and Growth Program Costs
      (as defined in the Amendment), subject to certain
      limitations.

    * Other changes that provide enhanced flexibility to invest
      in capital expenditures, joint ventures and acquisitions,
      subject to various restrictions.

In connection with the amendment, the company paid an amendment
fee of approximately US$1.5 million, as well as other fees and
expenses.

In connection with the changes to the credit agreement, certain
investment entities managed directly or indirectly by Apax
Europe IV GP Co Ltd have extended their commitment to
participate in the company's dividend reinvestment plan through
Dec. 31, 2008, pursuant to terms in place under the December
2006 agreement between these Apax entities and the company.  As
of April 1, 2007, the Apax entities collectively held
23,532,351.8 shares of common stock of the company or
approximately 53% of the outstanding common stock of the
company.

The company expects to file with the Securities and Exchange
Commission a current report on Form 8-K with respect to the
credit facility amendment and the agreement with the Apax
entities that includes such amendment and agreement as exhibits.

In addition, Xerium Technologies' Board of Directors has re-
evaluated the company's existing dividend policy adopted in May
2005, and the rate at which Xerium Technologies has paid
quarterly dividends.  The Board determined to adopt a new
dividend policy, under which quarterly dividends will be paid at
an amount to be determined by the Board on a quarterly basis
taking into account those factors deemed relevant by the Board.  
These factors may include such matters as the company's
financial performance, the sufficiency of cash flow from
operations to fund dividends, credit facility limitations,
growth opportunities and debt repayments considerations.

Under the new dividend policy, on May 2, 2007, the company's
Board of Directors declared a cash dividend of US$0.1125 per
share of common stock payable on June 15, 2007, to shareholders
of record as of the close of business on June 5, 2007.  This
reflects a reduction from the quarterly dividend paid in the
preceding six quarters of US$0.225 per common share.

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

                        *     *     *

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

Affirmed ratings are:

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




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


ACORN FUND: Proofs of Claim Filing Deadline Is May 30
-----------------------------------------------------
Acorn Fund Ltd.'s creditors are given until May 30, 2007, to
prove their claims to Susan Lo Yee Har, the company's
liquidator, or be excluded from receiving any distribution or
payment.

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

Acorn Fund's shareholder agreed on April 17, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

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
       Cayman Islands
       Telephone: (345) 949 8455
       Fax: (345) 949 8499


AVON LTD: Sets Final Shareholders Meeting for May 30
---------------------------------------------------
Avon Ltd. will hold its final shareholders meeting on
May 30, 2007, at:

         Coutts House, 1446 West Bay Road
         P.O. Box 707, Grand Cayman KY1-1107
         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 five 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:

         Royhaven Secretaries Limited
         Attention: Nick Wilkins
         c/o P.O. Box 707
         Grand Cayman KY1-1107
         Telephone: 945-4777
         Fax: 945-4799


BEAR STEARNS: Will Hold Final Shareholders Meeting on May 30
------------------------------------------------------------
Bear Stearns Multi-Strategy Offshore Fund Ltd. will hold its
final shareholders meeting on May 30, 2007, at 10:00 a.m., at:

         Walker House, 87 Mary Street
         George Town, KY1-9001, 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 five 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:

         Bear Stearns Asset Management Inc.
         383 Madison Avenue
         New York, New York 10179
         USA


CIRCLE K: Sets Final Shareholders Meeting for May 30
----------------------------------------------------
Circle K Holdings Ltd. will hold its final shareholders meeting
on May 30, 2007, at:

         Coutts House, 1446 West Bay Road
         P.O. Box 707, Grand Cayman KY1-1107
         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 five 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:

         Royhaven Secretaries Limited
         Attention: Nick Wilkins
         c/o P.O. Box 707
         Grand Cayman KY1-1107
         Telephone: 945-4777
         Fax: 945-4799


EDWARDS (CAYMAN): Moody's Puts (P)Ba1 Rating on US$100-Mil. Debt
----------------------------------------------------------------
Moody's Investors Service has assigned a provisional (P)Ba1
rating to Edwards (Cayman Island II) Limited's US$100 million
Super-priority Revolver and a provisional (P)B1 rating to the
company's US$370 million 1st Lien Term Loan and a provisional
(P)B3 rating to the US$245 million 2nd Lien PIK Toggle Loan.  
The ratings for the facilities reflect both the overall
probability of default of the company, to which Moody's has
assigned a probability of default-rating or PDR of B1, and a
loss given default rating of LGD 1 for the revolver, LGD 3 for
the 1st Lien Term Loan and LGD 5 for the 2nd Lien Term Loan.  
Simultaneously, a provisional (P)B1 corporate family rating has
been assigned to Edwards UKCo 1 Limited.  The rating outlook is
stable.

Together with the company's management, CCMP Capital signed a
definitive agreement to acquire the equipment business of BOC
Edwards from Linde in a US$1 billion transaction.  The funding
and additional transaction costs will be sourced from US$325
million equity, a US$87 million contingent seller note and
US$715 million bank debt, including a US$100 million revolver.

Oliver Giani, Vice President - Senior Analyst and Moody's lead
analyst for European engineering and manufacturing companies
said: "The assigned provisional (P)B1 ratings for Edwards
reflects its strong position as a market leader for vacuum
equipment in the semi-conductor industry as well as in other
industry vacuum applications.  In view of a high initial
leverage of this transaction, we take comfort from the company's
demonstrated ability to generate free cash flow despite the
cyclicality of the semiconductor industry, also benefiting from
the stabilising contribution of its General Vacuum division and
substantial service revenues.  Revenues from general vacuum
equipment, together with vacuum service across both segments,
account for approximately 43% of FY06 revenues."

Edwards' CFR reflects the company's (i) track record of strong
operational performance and free cash flow generation despite
its exposure to a volatile semiconductor equipment industry
(approximately 57% of 2006 revenues), (ii) the company's leading
market positions and strong competitive position, (iii)
continuous initiatives to reduce costs as well as (iv) the
diversified customer base.

The rating also takes into account:

   (i) the high debt leverage resulting in very weak interest
       coverage of 1.2x and Debt/EBITDA (excluding company-
       projected run-rate cost savings and including the
       contingent seller note) multiples above 6x at FYE 2006,
       which should however improve notably to below 6x when
       incorporating the impact of cost savings which have
       already materialized to some extent in the first quarter
       2007 and are expected to become fully visible this year;

   (ii) the pricing pressure of the group's main customers
        in the semiconductor industry;

   (iii) the low product diversity and dependency on structural
         swings as well as

   (iv) the f/x risk resulting from the fact that most of
        revenues are billed in US-Dollars with a significant
        cost base mainly in the UK.

Moody's commented that taking into consideration the initially
high leverage and weak interest coverage metrics, the assigned
ratings incorporate the expectation of earnings and cash
improvements in line with company expectations, which should
also be supported by an expected improvement in the
semiconductor industry in the second half of 2007.  An inability
of the company to improve its leverage (Debt/EBITDA) below 6x by
FYE 2007 (end of September) or a weakening of its interest
coverage over that time horizon could exert downward rating
pressure

The (P)B1 rating of the US$370 million term loan reflects an LGD
3 loss given default assessment as both, this facility and the
revolver are secured by a first lien on materially all of the
company's assets.  The (P)Ba1 rating of the "superpriority"
revolver -- LGD 1 loss given default assessment -- reflects its
contractual priority versus the US$370 million term loan.  The
(P)B3 rating of the 2nd lien PIK toggle loan reflects an LGD 5
loss given default assessment as it will be junior in priority
to the liens securing the 1st Lien Facilities.

Assignments:

  Issuer: Edwards (Cayman Island II) Limited

     -- Senior Secured Bank Credit Facility, Assigned a range
        of 07 - LGD1 to (P)Ba1

     -- Senior Secured Bank Credit Facility, Assigned a range
        of 42 - LGD3 to (P)B1

     -- Senior Secured Bank Credit Facility, Assigned a range
        of 80 - LGD5 to (P)B3

  Issuer: Edwards UKCo 1 Limited

     -- Probability of Default Rating, Assigned B1

     -- Corporate Family Rating, Assigned (P)B1

Headquarted in Crawley, United Kingdom, BOC Edwards, has a
leading position in the manufacturing of highly engineered
vacuum products and is world market leader in the supply of
vacuum.  The company offers its products and related services to
several markets including the semiconductor industry, the steel
industry, for the analysis of drugs, nanotechnology and genome
research and for the production of flat panel TVs and solar
panels, with the semiconductor industry being the main market
accounting for approximately 75% of total revenues.  Edwards
produces over 5,000 products ranging from simple vacuum gauges
to complex vacuum solutions for flat panel processing and serves
approximately 400 semiconductor equipment customers and 20,000
General Vacuum customers.  During the last twelve-month period
ended December 2006 Edwards achieved revenues of USD 1.1
billion, with a headcount of over 4,000 employees.


EDWARDS (CAYMAN): S&P Puts BB+ Rating on US$100MM Proposed Debt
---------------------------------------------------------------
Standard & Poor's Ratings Services have assigned ratings to the
loans and facility of Edwards (Cayman Islands II) Ltd:
  
   -- US$100 million proposed super-senior revolving credit
      facility, which has been assigned a recovery rating
      of '1', indicating a high expectation of full recovery
      of principal in the event of a payment default, and an
      issue rating of 'BB+'.

   -- US$370 million first-lien term loan, which has been
      assigned a recovery rating of '2', indicating substantial
      (80%-100%) recovery of principal in the event of a
      payment default, and an issue rating of 'BB-'.

   -- US$245 million second-lien payment-in-kind toggle loan,
      which has been assigned a recovery rating of '5',
      indicating negligible (0-25%) recovery of principal,
      and an issue rating of 'B'.
     
In addition, Standard & Poor's assigned a 'BB-' long-term
corporate credit rating to related entity Edwards UKCo 1 Ltd.  
The outlook is stable.

"The ratings on Edwards reflect the company's vulnerability to
the cyclicality of the semiconductor industry, high fixed costs,
raw materials dependence, and technology risks inherent within
the high precision manufacturing industry," said Standard &
Poor's credit analyst Louise Newey.  "These weaknesses are
partially offset by the company's global market-leading
positions within the sectors of semiconductor vacuum subsystem
supply, industrial vacuums, and R&D.  Edwards has significant
intellectual property in its core technologies and a broad
product portfolio including about 1,600 patented products."
     
The global vacuum technology market is worth an estimated US$4.0
billion, split between semiconductor markets (US$2.5 billion)
and general vacuums (US$1.5 billion).  Semiconductor-driven
sales represented 57% of Edwards's revenues in 2006 and general
vacuum revenues represented 20%, with the remainder from service
revenues.
     
Standard & Poor's expect Edwards to continue maintaining its
leverage position, despite an expected dip in revenues in 2007
driven by cyclicalities in semiconductor equipment revenues.  At
the 'BB-' rating level, the company is expected to achieve a
debt-to-EBITDA ratio of about 4.5x in 2007, and 4.0x or less in
2008 and 2009.  Any negative deterioration beyond this level
could require an adjustment in the rating, depending on the
reason for the deviation and the future prospects at the point
of the review.  Standard & Poor's consider any upside movement
in the rating unlikely in the immediate term.

Headquarted in Crawley, United Kingdom, BOC Edwards, has a
leading position in the manufacturing of highly engineered
vacuum products and is world market leader in the supply of
vacuum.  The company offers its products and related services to
several markets including the semiconductor industry, the steel
industry, for the analysis of drugs, nanotechnology and genome
research and for the production of flat panel TVs and solar
panels, with the semiconductor industry being the main market
accounting for approximately 75% of total revenues.  Edwards
produces over 5,000 products ranging from simple vacuum gauges
to complex vacuum solutions for flat panel processing and serves
approximately 400 semiconductor equipment customers and 20,000
General Vacuum customers.  During the last twelve months-period
ending in December 2006 Edwards achieved revenues of USD 1.1
billion, with a headcount of over 4,000 employees.


P RETOS: Will Hold Final Shareholders Meeting on May 10
-------------------------------------------------------
P Retos Investment (Cayman) II Ltd. will hold its final
shareholders meeting on May 10, 2007, at:

         87 May Street, George Town
         Grand Cayman KY1-9002,
         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 five 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:

         P Retos Investment Holdings Limited
         Attention: Alexandra Corner
         87 Mary Street, George Town
         Grand Cayman KY1-9002
         Cayman Islands
         Telephone: +44 207 220 4989
         Fax: +44 207 220 4998


P RETOS INVESTMENT: Sets Final Shareholders Meeting for May 10
--------------------------------------------------------------
P Retos Investment (Cayman) Ltd. will hold its final
shareholders meeting on May 10, 2007, at:

         87 May Street, George Town
         Grand Cayman KY1-9002,
         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 five 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:

         P Retos Investment Holdings Limited
         Attention: Alexandra Corner
         87 Mary Street, George Town
         Grand Cayman KY1-9002
         Cayman Islands
         Telephone: +44 207 220 4989
         Fax: +44 207 220 4998


P RETOS INVESTMENT III: Final Shareholders Meeting Is on May 10
---------------------------------------------------------------
P Retos Investment III (Cayman) Ltd. will hold its final
shareholders meeting on May 10, 2007, at:

         87 May Street, George Town
         Grand Cayman KY1-9002,
         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 five 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:

         P Retos Investment Holdings Limited
         Attention: Alexandra Corner
         87 Mary Street, George Town
         Grand Cayman KY1-9002
         Cayman Islands
         Telephone: +44 207 220 4989
         Fax: +44 207 220 4998




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


GOODYEAR TIRE: Signs Tandy Brands as Auto Accessories Licensee
--------------------------------------------------------------
The Goodyear Tire & Rubber Company has signed Tandy Brands
Accessories, Inc. as a licensee for selected gifts and auto
accessories.  The products will be available for marketing
beginning 2008.

Tandy Brands will market the Goodyear gift line to auto parts
retail outlets, tire dealers, and mass market auto departments.  
This will open up a whole new distribution channel for Tandy
Brands.

"We are pleased to be exploring new product opportunities with a
great company like Goodyear and look forward to offering our
product to the consumer with one of the best known and respected
names in the auto world.  We believe the Goodyear name will add
instant credibility to our product," said Britt Jenkins,
President and Chief Executive Officer of Tandy Brands.

              About Tandy Brands Accessories, Inc.

Tandy Brands Accessories, Inc. -- www.rolfs.net -- designs,
manufactures and markets fashion accessories for men, women and
children.  Key product categories include belts, wallets,
handbags, suspenders, neckwear, gifts and sporting goods.  

                      About Goodyear Tire

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

                        *     *     *

As reported in the Troubled Company Reporter on April 10, 2007,
Fitch Ratings has affirmed ratings for The Goodyear Tire &
Rubber Company, including 'B' Issuer Default Rating; 'BB/RR1'
rating of its US$1.5 billion first-lien credit facility;
'BB/RR1' rating of its US$1.2 billion second-lien term loan;
'B/RR4' rating of its US$300 million third-lien term loan;
'B/RR4' rating of its US$650 million third-lien senior secured
notes; and 'CCC+/RR6' Senior unsecured debt rating.


MILLIPORE CORP: Reports First Quarter Net Income of US$26.7 Mil.
----------------------------------------------------------------
Millipore Corp. reported financial results for its first quarter
ended March 31, 2007.

Revenues for the first quarter grew 39 percent, totaling
US$372.0 million.  Changes in foreign exchange rates during the
quarter increased total revenue growth by approximately 5
percent.  Excluding currency rate changes and acquisitions,
Millipore's organic revenue growth in the first quarter was 8
percent, which included 10 percent growth in its Bioprocess
Division and 6 percent growth in its Bioscience Division.

On a GAAP basis, the company reported first quarter net income
of US$26.7 million.  Non-GAAP net income in the first quarter
was US$40.5 million.  Stock-based compensation expense in the
first quarter was US$2.9 million and is reflected in both GAAP
and non-GAAP earnings per share.  

"We generated healthy revenue growth, increased non-GAAP
profitability, and improved cash flow during the first quarter
and we are on track to deliver a strong year of operational
performance," said Martin Madaus, Chairman & CEO of Millipore.  
"Our Bioprocess Division had a solid quarter due to strong
demand for our consumable products that are used in the
production of biologic drugs and vaccines.  In addition to
generating double-digit organic growth, the division has
significantly accelerated the pace of new product launches and
increased the value of our R&D pipeline.  This quarter we
launched several innovative products, which will improve our
customers' productivity and help us to sustain our growth in the
future.

"Our Bioscience Division continues to expand its presence in
important profitable markets such as cell biology, protein
research, and cell signaling.  The primary focus of the division
is on finishing our integration of Serologicals and increasing
the productivity of our sales organization.  By deploying our
larger product portfolio and new combined capabilities, we will
be able to expand our sales coverage and increase the value we
provide to our life science customers.  We expect to generate
significant value from these efforts in the second half of this
year."

                  First Quarter Highlights

    * Bioprocess Division generated 10 percent organic revenue
      growth led by strong sales of consumable products used
      in biopharmaceutical production

    * Bioprocess Division launched seven new products at
      last week's INTERPHEX(R) 2007 Conference, including a
      new disposable mixer and SMART(TM) RFID technology
      embedded in filtration products

    * Bioscience Division launched new media and cell lines
      for stem cell research, a new service for kinase
      profiling, and approximately 300 new antibodies to
      expand the company's leading portfolio of research
      reagents

    * Non-GAAP operating margins increased 170 basis points
      year-over-year from 17.7 percent to 19.4 percent

    * Cash flow from operations increased year-over-year by
      approximately US$34 million

    * The company reversed US$9.1 million of previously
      accrued taxes in the first quarter, resulting in a
      benefit to net income

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%


SHAW GROUP: Subsidiary Provides Furnace Equipment to Petrokemya
---------------------------------------------------------------
The Shaw Group Inc.'s Shaw Stone & Webster business unit has
signed two letters of intent to provide proprietary furnace
equipment and professional services to Arabian Petrochemical
Company -- Petrokemya, an affiliate of Saudi Basic Industries
Corporation or SABIC, as part of the Olefins-1 Debottlenecking
Project at an existing ethylene plant in Jubail Industrial City,
Saudi Arabia.  Shaw will provide two Ultra Selective
Conversion(R) furnaces and detailed engineering, procurement and
construction management services for the plant's expansion,
which is expected to increase capacity by 20% and be completed
by first quarter 2009.  The value of Shaw's contract was not
disclosed.

J.M. Bernhard, Jr., Chairman, President and Chief Executive
Officer of Shaw, said, "Our technology and engineering solutions
continue to differentiate Shaw as the leader in the global
ethylene market.  This important project for Petrokemya further
strengthens Shaw's leadership position in the Middle East in
ethylene and other petrochemical processes."

Shaw is an established leader in ethylene technology having
provided technology, design, engineering and construction on
more than 120 plants.  Shaw's ethylene plants have a worldwide
reputation for exceptionally high operational reliability, rapid
start-up and superior performance.  Since 1990, Shaw technology
has been selected for 35% of the world's ethylene capacity
increases.  Shaw is currently providing technology and EPC
services for a 1.3 million metric-ton ethylene plant for Eastern
Petrochemical Company (SABIC affiliate), also known as SHARQ, in
Al Jubail, Saudi Arabia.

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

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

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
April 10, 2007, Standard & Poor's Ratings Services said that the
ratings and outlook on Shaw Group Inc. (BB/Stable/--) are not
immediately affected by the company's announcement that the
filing of its second-quarter 10-Q will be delayed by 45 to 90
days and that Shaw Group is likely to restate previously
reported results.


SHAW GROUP: To Redeem Remaining US$15.2 Mln of 10-3/4% Sr. Notes
----------------------------------------------------------------
The Shaw Group Inc. will redeem all remaining outstanding
10-3/4% Senior Notes due 2010.  As of April 30, 2007, the
aggregate principal amount of the remaining outstanding Senior
Notes was US$15,173,000.  

Pursuant to the terms of the 10-3/4% Senior Notes Indenture, the
Senior Notes will be redeemed by Shaw on May 31, 2007 at a
redemption price equal to 105.375% of the outstanding principal
amount of the outstanding Senior Notes ($1,053.75 per US$1,000
in principal amount of the Senior Notes) plus accrued interest
of US$22.67 per US$1,000 in principal amount of the Senior
Notes. Shaw will fund the redemption of the Senior Notes with
cash on hand.  The company expects to record a pre-tax charge of
approximately US$1.1 million, US$0.7 million after taxes in the
third quarter of fiscal 2007 as a result of the early retirement
of remaining outstanding 10-3/4% Senior Notes.

Shaw issued the US$253 million face amount, 10-3/4% Senior Notes
due 2010 in a private offering on March 17, 2003.  In May 2005,
Shaw redeemed US$237,856,000 aggregate principal amount of
Senior Notes, 94% of original issuance, pursuant to a tender
offer.  The company paid approximately US$266.8 million to
redeem the Senior Notes, plus accrued interest, and made consent
payments totaling approximately US$5.9 million.

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

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

                        *     *     *

Standard & Poor's Ratings Services affirmed its 'BB' corporate
credit rating on The Shaw Group Inc. and removed it from
CreditWatch, where it was placed with negative implications in
October 2006.  S&P said the outlook is stable.

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




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


MILLICOM INTERNATIONAL: Regulator Fines Tigo COP17.3 Million
------------------------------------------------------------
Colombian public services regulator Superintendencia de
Industria y Comercio head Jairo Rubio Escober told local daily
Portafolio that the agency has fined Millicom International
Cellular's Tigo some COP17.3 million for failing to comply with
rules "regarding information on the rates" it charges.

Portafolio notes that Comcel and Movistar Colombia were also
fined COP17.3 million for the same violation.  

Tigo, along with Comcel and Movistar Colombia, decided to
challenge the penalty, Portafolio states.

Headquartered in Bertrange, Luxembourg, and controlled by
Sweden's AB Kinnevik, Millicom International Cellular S.A. --
http://www.millicom.com/-- is a global telecommunications
investor with cellular operations in Asia, Latin America and
Africa.  It currently has cellular operations and licenses in 16
countries.  The Group's cellular operations have a combined
population under license of around 391 million people.

The Central America Cluster comprises Millicom's operations in
El Salvador, Guatemala and Honduras.  The population under
license in Central America at December 2005 is 26.4 million.
The South America Cluster comprises Millicom's operations in
Bolivia and Paraguay.  The population under license in South
America at December 2005 is 15.2 million.

                        *     *     *

Standard & Poor's Ratings Services placed its 'B+' long-term
corporate credit rating and 'B-' senior unsecured debt ratings
on Luxembourg-headquartered emerging-markets wireless
telecommunications operator Millicom International Cellular S.A.
on CreditWatch with positive implications, following the signing
of an agreement for sale by Millicom of its 88.9% stake in
Paktel Ltd. to China Mobile Communications Corp.

Millicom International's 10% senior notes due 2013 carry Moody's
B3 rating and Standard & Poor's B- rating.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
May 4, 2007, Moody's Investors Service confirmed its Ba3
Corporate Family Rating for Millicom International Cellular S.A.

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




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


DENNY'S CORP: March 31 Balance Sheet Upside-Down by US$221 Mil.
---------------------------------------------------------------
Denny's Corporation reported US$221.2 million in total
stockholder's deficit, US$443.7 million in total assets and
US$664.9 million in total liabilities as of March 31, 2007.  The
company's March 31 balance sheet also showed strained liquidity
with total current assets of US$71.6 million available to pay
total current liabilities of US$138.7 million.

During the first quarter, Denny's sold six restaurant operations
to franchisees and divested three real estate properties for
aggregate net proceeds of US$5.7 million.  These proceeds along
with cash flow from operations were used to reduce outstanding
debt by US$6 million while increasing the company's cash balance
by US$8.9 million.

Subsequent to quarter-end, Denny's made an US$8.8 million
semiannual interest payment on its 10% Senior Notes.  In
addition, the company has initiated a US$10 million voluntary
prepayment on its Credit Facility Term Loan, which will be
effective in the first week of May 2007.

                      First Quarter Results

Net income for the first quarter was US$1.2 million, an increase
of US$451,000, as compared with prior year net income of
US$712,000. Adjusted income before taxes decreased US$2.1
million from the prior year period to a loss of US$100,000 in
the first quarter.

For the first quarter of 2007, Denny's reported total operating
revenue of US$236.8 million, a decrease of US$11.2 million from
the prior year quarter.  Company restaurant sales decreased
US$9.2 million to US$215.8 million as a result of 17 fewer
equivalent units and a 1.8% decrease in company same-store
sales.

Franchise revenue decreased US$2 million to US$21 million as a
result of lower franchise rental income, eleven fewer equivalent
units and a 0.7% decrease in franchise same-store sales.  
Franchise rental income, a component of franchise revenue,
decreased

US$2.2 million due primarily to the 2006 sale of real estate
previously leased to franchisees.

General and administrative expenses for the first quarter
decreased US$1.3 million from the same period last year due
primarily to a US$1.2 million reduction in share-based incentive
compensation.  Depreciation and amortization expense for the
first quarter decreased by US$1.2 million compared with the
prior year period due primarily to the sale of real estate
assets in 2006.  Operating income for the first quarter
decreased US$2.3 million to US$12.7 million due primarily to a
lower company restaurant operating margin and reduced franchise
rental income.  Interest expense for the first quarter decreased
US$3.3 million to US$11.3 million due primarily to lower debt
balances and improved borrowing costs.

Full-text copies of the company's first quarter report for 2007
are available for free at http://ResearchArchives.com/t/s?1e77

Nelson Marchioli, president and chief executive officer, stated,
"Our first quarter results were impacted by soft sales combined
with rising labor costs.  In response to the persistent sales
weakness affecting much of our industry, we recently launched
several new promotions aimed at increasing guest traffic.  By
pairing Denny's strong value proposition with a lineup of
exciting new product offerings we will provide consumers a
compelling reason to choose Denny's."

"We are committed to delivering on our long-term strategic
initiatives including increasing cash generation and reducing
debt.  We are implementing franchise development programs
targeted at both existing and potential franchisees.  We are
investing in product and process innovation to shape the future
of Denny's.  As we execute on these objectives, we are confident
in our plans to expand the Denny's brand, improve our financial
performance and enhance shareholder value," Mr. Marchioli
concluded.

                        About Denny's Corp.

Headquartered in Spartanburg, South Carolina, Denny's
Corporation (Nasdaq: DENN) -- http://www.dennys.com/-- is    
America's largest full-service family restaurant chain,
consisting of 521 company-owned units and 1,024 franchised and
licensed units, with operations in the United States, Canada,
Costa Rica, Guam, Mexico, New Zealand and Puerto Rico.

                        *     *     *

Denny's Corp. carries Standard & Poor's 'B+' Long Term Foreign
Issuer and 'B+' Long Term Local Issuer ratings.




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


BANCO INTERCONTINENTAL: Defense Says US$20MM Spent on Pepe Card
---------------------------------------------------------------
Pedro Julio (Pepe) Goico -- a retired colonel and the head of
former Dominican Republic president Hipolito Mejia's security --
spent about US$20 million using credit cards in 2003, Dominican
Today reports, citing Eric Raful, former Banco Intercontinental
President Ramon Baez Figueroa's legal representative.

As reported in the Troubled Company Reporter-Latin America on
April 16, 2007, Zunilda Paniagua, a member of the Banco
Intercontinental Liquidator Commission who testified before the
National District 1st Collegiate Court of the Dominican Republic
in favor of the prosecution, said that Banco Intercontinental
paid the expenses from the four credit cards of Mr. Goico every
month.  According to Ms. Paniagua, Banco Intercontinental's
registries showed that the bank paid for the credit cards every
month.  The cards' transactions were US$2.3 million and DOP4
million from 2000 to 2002.  The first card was issued in 1997.  

Dominican Today relates that the Banco Intercontinental fraud
trial on May 4 was focused on:

          -- Julio Hazim's debt with the collapsed bank,
          -- the credit card used by the Mr. Goico,
          -- the Bankinvest account, the duty free stores,
          -- the erased overdrafts,
          -- the tycoon and political leader Guaroa Liranzo, and
          -- the pending debts.

Authorities told Dominican Today that the credit card was used
to acquire a helicopter, designer watches and sophisticated
Israeli security equipment.

According to Dominican Today, Mr. Goico had lamented in a
televised interview in 2006 that he hadn't purchased the
Caribbean Sea with the card.

Ms. Paniagua said that the "Pepe card" was cancelled every month
and that investigation on how it was paid is pending, Dominican
Today notes.

Dominican Today relates that Mr. Raful asked Ms. Paniagua why
the authorities didn't include Mr. Liranzo, Mr. Hazim and the
businesspersons Frank Jorge Elias and Ivelisse Garcia in the
indictment.  Ms. Paniagua explained that the matter was a
subject for lawyers and that she had little to contribute.

Mr. Elias' company Supercanal is currently facing a lawsuit,
Dominican Today says, citing Ms. Paniagua.  

Authorities alleged that Mr. Hazim owes Banco Intercontinental
some DOP4.26 billion and US$26 million.  Ms. Paniagua said that
the debt was "restructured and documented by the commission,"
Dominican Today states.

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


BANCO MULTIPLE: Fitch Ups Issuer Default Rating to B- from CCC+
---------------------------------------------------------------
Fitch Ratings has upgraded these ratings of Banco Multiple Leon:

   -- Long-term foreign currency Issuer Default Rating
      to 'B-' from CCC+;

   -- Short-term to 'B' from 'C';

   -- Individual to 'D/E'' from E;

   -- Long term National Rating to 'BBB+(dom)'
      from 'BBB(dom)';

   -- Short term National Rating to 'F2(dom)'
      from 'F3(dom)'; and

   -- Sub-debt issuance to 'BBB-(dom)' from 'BB+(dom)'.

Banco Multiple's ratings all have a Stable Outlook.

In addition, Fitch has affirmed Banco Multiple's Support Rating
at '5' and assigned long-term and short-term local currency
ratings of 'B-' and 'B', respectively.  Future upgrades will be
explained by further enhancement of the bank's capital base and
profitability levels.  Downside risk for the ratings would stem
from a slide in its recovery process.

The upgrade of Banco Multiple's ratings reflects its improved
capital position and profitability, a consequence of the
ambitious restructuring program embraced by its shareholders
since its incorporation in year 2003, which has provided
operational support to the bank and significant capital
injections.  Despite the significant improvement of Banco
Multiple's financial profile since the incorporation of its new
shareholder in 2003, the ratings are still limited by its tight
capital position and the need to keep improving its
profitability in an increasingly competitive market.

More than DOP4.230 billion have been injected by the new
shareholder since 2003 in order to sustain the clean-up process
of the bank and enhance its operating structure.  At end-2006
the bank's equity to assets ratio was 7.2%, while the regulatory
risk-weighted capital adequacy ratio stood at 11.3%, aided by
the 0% risk weight of Central Bank securities.  Despite its
still significant burden, Banco Multiple's exposure to fixed and
foreclosed assets has improved dramatically since end-2004 (202%
of equity) down to 103% of equity, a level still above the
average of its peers and regional best practices.  Going
forward, shareholders have indicated their intention to keep the
capitalization process of the bank and the steady reduction of
the burden imposed by the aforementioned concentration in order
to provide Banco Multiple with an appropriate capital base to
pursue its business plan in the short and medium-term.

Following a stringent policy to clean up the loan portfolio
since 2003, which had been plagued with significant related
parties lending, nonperforming loans and significant
concentrations, Banco Multiple posted sustained improvement of
its asset quality ratios.  Also, significant steps have been
taken in order to revamp loan generation by following adequate
risk-control techniques.  As such, at end-December 2006 the
ratio of past-due loans-to-total loans stood at 3.8%, well below
the 12% posted at end-2004, while loan loss reserves represented
a healthy 5.8%.  A rationalization of the branch network and
personnel together with significant investments in the bank's
information technology platform have been responsible for
notable improvements in terms of operating expenses.  
Nevertheless, the still relatively small size of the bank limits
the positive effects of this strategy on its overall
profitability.  The steady increase in operating profits
explained by the improvement in the asset and liabilities mix
has compensated for the sizable nonrecurring income observed
during previous years.  During 2004, Banco Multiple's operating
profit reached a break-even point, compared with a loss of
approximately 5% during 2005.  Going forward, an increase in
business volumes and a tight control of operating expenses would
be key to sustain this trend.

As of end-2006, Domican Republic-based Banco Multiple ranked
fifth out of 12 commercial banks, with a 7% market share by
total assets.  Banco Multiple is a significant player in the
credit card business and a key partner of Visa International in
the Dominican Republic.  Banco Multiple is the result of the
merger of Banco Profesional, a recently incorporated multiple
bank (2002), and Banco Leon, the successor of the troubled Banco
Nacional de Credito (Bancredito).  In addition to banking, the
Leon family is the main shareholder of the Leon Group, which in
turn is the largest industrial group in the Dominican Republic,
with considerable interests in the beverage and tobacco sectors.


DELTA AIR: Offering One-Way Discount Fares to Dominican Republic
----------------------------------------------------------------
Delta Air Lines is offering one-way discount airfares of up to
US$159 from the US to the Dominican Republic, Dominican Today
reports.

Dominican Today relates that customers who book and buy round-
trip tickets by June 3, or about 14 days ahead of departure, can
travel through Delta Air from Atlanta, Georgia, USA, to Puerto
Plata, Dominican Republic for US$229 one-way.  

Meanwhile, the discount airfare for Atlanta, Georgia, USA, to
Santo Domingo, Dominican Republic is US$159 one-way.  Delta Air
requires a seven-day advance purchase for this travel, Dominican
Today states.

Headquartered in Atlanta, Ga., Delta Air Lines (OTC:DALRQ)
-- http://www.delta.com/-- is the world's second-largest
airline in terms of passengers carried and the leading U.S.
carrier across the Atlantic, offering daily flights to 502
destinations in 88 countries on Delta, Song, Delta Shuttle, the
Delta Connection carriers and its worldwide partners.  The
airline also serves Puerto Rico and the U.S. Virgin Islands.

                        Plan Update

The Debtors filed a chapter 11 plan of reorganization and
disclosure statement explaining that plan on Dec. 19, 2007.
On Jan 19, 2007, they filed revisions to the plan and disclosure
statement, and submitted further revisions to the plan on
Feb. 2, 2007.  On Feb. 7, 2007, the Court approved the Debtors'
disclosure statement.  The hearing to consider confirmation the
Debtors' plan was scheduled.  On April 30, 2007, Delta Air Lines
emerge from Chapter 11 bankruptcy proceedings.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
May 4, 2007, Standard & Poor's Ratings Services inadvertently
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' on May 1, 2007.


HANESBRANDS INC: Closing Three Plants; Cutting 1,400 Jobs
---------------------------------------------------------
Hanesbrands Inc. plans to close three facilities in the
Dominican Republic and cut 1,400 jobs as part of its
restructuring to makes its business more profitable, the
Business Journal of the Greater Triad Area reports.

Sources say that affected employees will receive severance from
the company.  A charge of US$3 million against its earnings goes
out for severance, accelerated deprecation and other costs
associated with the move.  The cuts, at sewing and assembly
plants in Itabo, Dominican Republic, will take effect by
September, Business Journal relates.

In September 2006, the company has closed 10 plants since its
spin off from Sara Lee Corp.

Hanesbrands chief global supply chain officer and executive vice
president Gerald Evans said in a press release that trimming
down would give the company opportunity to operate fewer
facilities that are larger in order to effectively utilize its
assets.  "We continually review how to remain most competitive
in every country and region around the world in which we
operate, particularly as we begin to add operations in Asia to
balance our supply chain in the Western Hemisphere," Mr. Evans
added.

The company recently opened a textile manufacturing plant in Dos
Rios, Dominican Republic, and still has six other sewing and
assembly operations in the Caribbean nation, Business Journal
notes.

Hanesbrands Inc. -- http://www.hanesbrands.com/-- markets  
innerwear, outerwear and hosiery apparel under consumer brands,
including Hanes, Champion, Playtex, Bali, Just My Size, barely
there and Wonderbra.  The company designs, manufactures, sources
and sells T-shirts, bras, panties, men's underwear, children's
underwear, socks, hosiery, casual wear and active wear.
Hanesbrands has approximately 50,000 employees in 24 countries,
including India and China.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Dec. 4, 2006, Moody's Investors Service assigned a B2 rating and
a loss given default assessment of LGD5, 89% to Hanesbrands
Inc.'s proposed US$500 million senior unsecured note issue.  It
has operations in the Dominican Republic and Central America.

Moody's affirmed these ratings:

   -- Corporate Family Rating at Ba3
   -- Probability of Default Rating at Ba3
   -- Speculative Grade Liquidity Rating at SGL-1

Moody's also affirmed these ratings, but revised their LGD
assessments:

   -- US$2.15 billion 1st lien facilities at Ba2, LGD3, 32% from
      LGD3, 31%
   -- US$450 million 2nd lien facilities at B1, LGD5, 74% from
      LGD5, 73%




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


PETROECUADOR: Will Import Venezuelan Diesel to Supply Unit
----------------------------------------------------------
Ecuador's state-owned oil firm Petroecuador will import premium
diesel from Venezuela to supply the shortage of the fuel in the
Esmeraldas plant, Business News Americas reports.

Petroecuador said in a statement that Esmeraldas, which is run
by its subsidiary Petroindustrial, suffered a fire on May 3.  
The fire was caused by one of the heaters and likely was the
result of a fissure in a coil.

The fire has been controlled.  However, the 's continuous
catalytic reformer unit's operating capacity was decreased to
70%, 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.




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


AMERICAN AIRLINES: Pilots Union Seeks 30.5% Compensation Hike
-------------------------------------------------------------
A Dallas Business Journal writer reported Thursday that the
Allied Pilots Association has presented a compensation plan to
American Airlines Inc. that would give pilots the 30.5% raise on
May 1, 2008, plus 5% increases each year for the next three
years.

In addition, the source says that the pilots want signing
bonuses that equal 15% of each pilot's total pay over the length
of contract negotiations, which began July 21, 2006, and
May 1, 2008, when the new contract should take effect.

"Other American Airlines stakeholders have already recovered
their investment in our airline's turnaround," Dallas Business
cited the union's president, Capt. Ralph Hunter, as saying.  "It
is time for our pilots to begin doing the same."

Melanie Trottman of The Wall Street Journal relates that the pay
raise proposal was disclosed by the union in hopes of
accelerating stagnant contract negotiations that began last
September.

According to WSJ, the union took US$1.6 billion in annual pay
and benefit cuts in 2003 to help prevent American Airlines'
slide into bankruptcy.

American Airlines agreed to bring the pilots' demands to the
table for full discussion.

                       Credit Ratings

In March 2007, Moody's Investors Service raised the debt ratings
of AMR Corporation and its subsidiaries, including the corporate
family rating, to B2.  Moody's also raised the ratings of most
tranches of AMR's Enhanced Equipment Trust Certificates,
affirmed the SGL-2 rating, and increased the Loss Given Default
rate to 30-LGD3 on the secured debt and to 83-LGD5 on the senior
unsecured debt.  The outlook is stable.

"The rating upgrades follow meaningful improvement to the debt
protection metrics of AMR Corp. and American Airlines Inc.
after a sustained period of free cash flow generation, including
American's first full year of net profits since 2000", said
George Godlin of Moody's Investors Service.

Also in the same month, Standard & Poor's Ratings Services
assigned its 'CCC+' rating to American Airlines Inc.'s
US$357 million Alliance Airport Authority special facility
revenue refunding bonds, series 2007, due Dec. 1, 2029.

The bonds are guaranteed by American's parent, AMR Corp., and
are secured by payments made by American to the airport
authority.  Proceeds are being used to refund the outstanding
revenue bonds, series 1990, whose rating is withdrawn.

                  About American Airlines

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


AMERICAN AIRLINES: March 31 Balance Sheet Upside-Down by US$819M
----------------------------------------------------------------
American Airlines Inc., AMR Corporation's wholly owned
subsidiary, recorded net earnings of US$51 million in the first
quarter of 2007 compared to a net loss of US$106 million in the
same period last year due to an improvement in unit revenues and
by fuel prices that remain high by historical standards.  

The company's revenues increased approximately US$75 million, or
1.4%, to US$5.4 billion in the first quarter of 2007 from
revenues of US$5.3 billion for the same period last year.

American Airlines' balance sheet as of March 31, 2007, showed
total assets of US$26.6 billion and total liabilities of
US$27.4 billion resulting in a stockholder's deficit of
US$819 million.  The company's stockholder's deficit as of
Dec. 31, 2006, stood at US$1 billion.

The company's March 31 balance sheet also showed strained
liquidity with total current assets of US$7.6 billion and
total current liabilities of US$10 billion.

The company had accumulated deficit of US$3.2 billion as of
March 31, 2007, compared to accumulated deficit of US$3.3
billion at Dec. 31, 2006.

                     Cash Flow Activity

At March 31, 2007, the company had US$5.3 billion in
unrestricted cash and short-term investments, an increase of
US$660 million from Dec. 31, 2006, and US$285 million available
under a revolving facility.  Net cash provided by operating
activities in the three-month period ended March 31, 2007, was
US$814 million, an increase of US$82 million over the same
period in 2006 primarily due to an improved revenue environment
and the impact of certain company initiatives to improve
revenue.  The company also contributed US$62 million to its
defined benefit pension plans in the first quarter of 2007
compared to US$36 million during the first quarter of 2006.

A full-text copy of the company's quarterly report is available
for free at: http://researcharchives.com/t/s?1de9

                 1st Qtr Plans & Achievements

On March 28, 2007, American said it will pull forward an order
with The Boeing Company to take delivery of three 737-800
aircraft in 2009 that American had previously committed to
acquire in 2016.  American also said it intends to continue
pulling forward other aircraft from their 2013 to 2016 delivery
schedules to the 2009 to 2012 timeframe.  As of March 31, 2007,
the company had commitments to acquire three Boeing 737-800s in
2009 and an aggregate of 44 Boeing 737-800s and seven Boeing
777-200ERs in 2013 through 2016.  

Future payments for all aircraft, including the estimated
amounts for price escalation, are currently estimated to be
approximately US$2.8 billion, with the majority occurring in
2011 through 2016.  However, if the company commits to
accelerating the delivery dates of a significant number of
aircraft in the future, a significant  portion of the US$2.8
billion commitment will be accelerated into earlier periods,
including 2008 and 2009.

Accumulated depreciation of owned equipment and property at
March 31, 2007, and Dec. 31, 2006, was US$10.1 billion and
US$10.0 billion, respectively.  Accumulated amortization of
equipment and property under capital leases was US$1.1 billion
at both March 31, 2007, and Dec. 31, 2006.

On March 30, 2007, American paid in full the US$285 million
principal balance of its senior secured revolving credit
facility.  As of March 31, 2007, the US$444 million term loan
facility under the same bank credit facility was still
outstanding and the US$285 million balance of the revolving
credit facility remains available to American through maturity.  
The revolving credit facility amortizes at a rate of US$10
million quarterly through Dec. 17, 2007.  American's obligations
under the credit facility are guaranteed by AMR.

As of March 31, 2007, American had issued guarantees covering
approximately US$1.1 billion of AMR's unsecured debt.  In
addition, as of March 31, 2007, AMR and American had issued
guarantees covering approximately US$368 million of AMR Eagle's
secured debt.

On Jan. 26, 2007, AMR completed a public offering of 13 million   
shares of its common stock.  The company realized US$497 million
from the sale of equity.  The proceeds from the transaction were
transferred to American.

                 Changes in Employee Benefits

The company expects to contribute approximately US$364 million
to its defined benefit pension plans in 2007.  The company's
estimates of its defined benefit pension plan contributions
reflect the provisions of the Pension Funding Equity Act of 2004
and the Pension Protection Act of 2006.  Of the US$364 million
the company expects to contribute to its defined benefit pension
plans in 2007, the company contributed US$62 million during the
three months ended March 31, 2007, and contributed US$118
million on April 13, 2007.

In addition, American has announced a pay plan, funded at 1.5%
of base salaries, for all American employees on U.S. payroll,
effective May 1, 2007.  On April 18, 2007, the Board approved
1.5% increases in the base salaries for officers (including the
executive officers of AMR and American), effective May 1, 2007.

                 About American Airlines Inc.

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


* EL SALVADOR: To Ink Free Trade Accord with Taiwan & Honduras
--------------------------------------------------------------
El Salvador will sign a free trade agreement with Honduras and
Taiwan, news agency Deutsche Presse-Agentur reports, citing the
Taiwanese Economics Ministry.

DPA notes that Economics Minister Chen Ruey-long will visit El
Salvador for the signing of the accord.

Taiwan has signed free trade pacts with Panama, Guatemala and
Nicaragua, according to DPA.  It will be Taiwan's first
trilateral free trade agreement.

Taiwan is holding free trade negotiations with the Dominican
Republic.  Taiwan is also seeking to sign free trade deals with
countries like the United States, Japan, South Korea Singapore
and Chile.  They are countries that are reluctant on entering
agreements with Taiwan for fear of angering China -- DPA states.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 15, 2007, Fitch Ratings affirmed these ratings on El
Salvador:

   -- Foreign and Local Currency Issuer Default Ratings
      at 'BB+';

   -- Short-term Issuer Default Rating at 'B'; and

   -- Country Ceiling at 'BBB-'.

Fitch said the rating outlook was stable.




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


TECO ENERGY: Ups Dividend Payment to 19.5 Cents Per Share
---------------------------------------------------------
TECO Energy's quarterly dividend will increase by 2.6 percent,
from 19 cents per share to 19.5 cents per share.

Chairman and CEO Sherrill Hudson said, "All of our team members
are proud of the previous 43-year history of increasing our
dividend that we had through the 1990s.  We have been looking
forward to the time when we could once again increase our
dividend.  We have told investors that we would not increase the
dividend until we were comfortable that we could restart the
pattern of regular dividend increases.  While we can not
guarantee future dividend increases, we think we are well-
positioned to restart the pattern."

"For the past two years, our focus has been on implementing our
parent debt retirement plans.  With all of the debt maturing in
2007 now retired, and more certainty in our future earnings and
cash flows, the time is right to reward our shareholders," added
Ms. Hudson.

The increase brings TECO Energy's annual dividend rate to
US$0.78 per share, a two-cent increase.  The dividend is payable
May 28 to shareholders of record as of May 15.

Effective with the January 2007 dividend, the expected payment
dates moved from the 15th of the month to the 28th.  Thus, the
expected 2007 dividend payment dates for the remainder of the
year are Aug. 28 and Nov. 28.

TECO Energy, Inc. -- http://www.tecoenergy.com/-- is an
integrated energy-related holding company with regulated utility
businesses, complemented by a family of unregulated businesses.
Its principal subsidiary, Tampa Electric Company, is a regulated
utility with both electric and gas divisions (Tampa Electric and
Peoples Gas System).  Other subsidiaries are engaged in
waterborne transportation, coal and synthetic fuel production
and electric generation and distribution in Guatemala.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
April 23, 2007, Moody's Investors Service upgraded the ratings
of TECO Energy, Inc., including its senior unsecured debt
rating, to Ba1 from Ba2.  TECO Energy's ratings remain on review
for possible further upgrade.  The Corporate Family Rating and
Probability-of-Default Rating for TECO Energy have been
withdrawn.  In addition, Moody's affirmed the ratings of Tampa
Electric Company (Baa2 senior unsecured, stable outlook).




===============
H O N D U R A S
===============


* HONDURAS: To Ink Free Trade Accord with Taiwan & El Salvador
--------------------------------------------------------------
Honduras will sign a free trade agreement with El Salvador and
Taiwan, news agency Deutsche Presse-Agentur reports, citing the
Taiwanese Economics Ministry.

DPA notes that Economics Minister Chen Ruey-long will visit El
Salvador for the signing of the accord.

Taiwan has signed free trade pacts with Panama, Guatemala and
Nicaragua, according to DPA.  It will be Taiwan's first
trilateral free trade agreement.

Taiwan is holding free trade negotiations with the Dominican
Republic.  Taiwan is also seeking to sign free trade deals with
countries like the United States, Japan, South Korea Singapore
and Chile.  They are countries that are reluctant on entering
agreements with Taiwan for fear of angering China -- DPA states.

                        *     *     *

Moody's Investor Service assigned these ratings on Honduras:

                     Rating     Rating Date

   Senior Unsecured    B2       Sept. 29, 1998
   Long Term IDR       B2       Sept. 29, 1998




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


CABLE & WIRELESS: Launches Calling Plans & Handset Sale
-------------------------------------------------------
Cable & Wireless Jamaica has launched two new calling plans and
a three-month handset sale, in an to deepen its penetration in
the mobile phone market, the Jamaica Observer reports.

The Observer relates that Cable & Wireless Chief Executive
Officer Rodney Davis said during the launching for the three
products at the company's headquarters in Kingston, "We will be
increasing our value propositions in the marketplace
significantly as we launch another momentous phase in our mobile
operations by rolling out two new big calling plans and a Big
Sale extravaganza that is bound to stir up the market.  Cable
and Wireless remains committed to leading the market in every
area of telecommunications that we compete in.  We intend to
achieve this by giving customers the best product, the best
service, and quite frankly the best value."

According to The Observer, one of the new calling plans called
"Anyone Freetime" requires a weekly payment of J$200.  It offers
prepaid clients:

          -- two hours free talk time,
          -- 20 free text messages,
          -- 20% off international calls daily,
          
The report says that the plan requires a monthly subscription of
US$800 for post-paid clients, who will then get:

          -- a 20% discount off all calls to the US, Canada and
             the United Kingdom (fixed lines only),

          -- 3,600 off-peak minutes, and

          -- 600 text messages to inter-network numbers.

The Observer notes that another plan Cable & Wireless launched
is the "Anyone World" plan, which is available to prepaid
customers who will then have up to 2,500 minutes of calling time
to the US, Canada and the United Kingdom for a monthly fee of
US$999.

Cable & Wireless also launched its "Big Sale," which offers
discounts of up to 50% on handsets.  It is available from May 7
until July 31, according to the report.  

"Eighteen months ago when we had the big launch for our 'Anyone
Plan,' at that time we thought that it was the clearest,
cleanest and most simple plan in the marketplace which simply
offered the best value to consumers when seeking out a mobile
plan.  We said our objective was to break the barrier of
communications in Jamaica by making it more affordable to
Jamaicans to communicate using whatever method they chose.  We
also indicated that 'Anyone' will serve as a platform on which
we would continue to offer unprecedented offerings to our mobile
customers using 'Anyone' as a launch pad," Mr. Davies commented
to The Observer.

"The Anyone plan was the first plan in Jamaica that offered a
single rate to call across any network at anytime -- the only
rate that gives cross net calling at the same rate as calling on
networks, in other words, reduces the need to have two phones.  
It's as much as a 45% reduction in price to any of our
competitors for calling across networks.  The truth is that,
with 'Anyone' and the innovations associated with that and the
promotions that we have done over the last 18 months, we have
become the clear market leader when it comes to offering value
for money...the numbers don't lie," Mr. Davies told The
Observer.

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

                        *     *     *

Cable & Wireless Plc carry these ratings:

    * Moody's Investors Service
    
      -- Long-Term Corporate Family Rating: Ba3
      -- Senior Unsecured Debt: B1
      -- Short-Term: NP
      -- Outlook: Negative

    * Standard & Poor's

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


DYOLL INSURANCE: Coffee Farmes Receive US$60 Million in Payment
---------------------------------------------------------------
Radio Jamaica reports that the Coffee Insurance Scheme Trustees
have reportedly repaid the US$60 million that the Jamaican
government disbursed to coffee farmers in 2006, as compensation
from the Dyoll Insurance Company.

The money was from Dyoll Insurance's liquidators, Kenneth Krys
and John Lee at RSM Cayman, Radio Jamaica relates.

According to Radio Jamaica, the Jamaican Agriculture Ministry
disbursed the funds to assist the farmers who were waiting for
the settlement of claims for the damage they suffered during
Hurricane Ivan in September 2004.

Radio Jamaica notes that the refunding comes as the trustees try
to come up with a scheme for the payment in compensation to the
farmers who suffered losses during the hurricane.

Senator Norman Grant, the Jamaica Agricultural Society head, is
urging the trustees to begin the payout process as early as
possible, Radio Jamaica states.

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




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


AMERICAN TOWER: Subsidiary Completes US$1.75-Billion Offering
-------------------------------------------------------------
American Tower Corp. reported that American Tower Depositor Sub,
LLC, a special-purpose subsidiary of the company, has completed
its previously announced private offering of US$1.75 billion of
Commercial Mortgage Pass-Through Certificates, Series 2007-1.  
The Certificates are backed by the debt of two other special-
purpose subsidiaries of the company and the debt is secured
primarily by mortgages on the subsidiaries' interests in 5,295
wireless and broadcast communication towers and the related
tower sites.  The weighted average interest rate on the various
classes of Certificates is approximately 5.61% and all of the
Certificates have an expected life of approximately seven years
with a final maturity of April 2037.

The company used a portion of the proceeds (after payment of
underwriting commissions and other transaction expenses and
funding of certain reserve accounts) of this offering to repay
all amounts outstanding under the senior secured credit
facilities of SpectraSite Communications, LLC, including
approximately US$765 million in principal, plus accrued interest
and other related costs and expenses. In addition, the company
repaid approximately US$250 million outstanding under the
revolving senior secured credit facilities of American Towers,
Inc. or ATI.  The company expects to use the remaining net
proceeds to fund the repurchase of up to approximately US$325
million of the 7.25% senior subordinated notes due 2011 of ATI
pursuant to ATI's previously announced tender offer, to pay
other consideration payable in connection with that tender offer
and the related consent solicitation, and for general corporate
purposes.

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

                        *     *     *

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

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

American Tower Corp.

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

American Towers Inc.

   -- IDR to 'BB' from 'BB-'.

SpectraSite Communications Inc.

   -- IDR to 'BB' from 'BB-'.


BALDOR ELECTRIC: Net Profit Rises to US$21 Mil. in First Quarter
----------------------------------------------------------------
Baldor Electric Company announced unaudited financials results
for the first quarter of 2007.

John McFarland, Chairman and CEO, commented on the Company's
results, "We are pleased to report our first quarterly results
following our acquisition of Dodge and Reliance.  Sales of
US$396 million were up 106%, earnings at US$21 million were up
84%, and earnings per share were up 47% to US$0.50. Operating
margin for the quarter was 13.2%.  Earnings per share were
reduced by US$0.02 for non-recurring purchase accounting
adjustments related to the acquisition.  Diluted average shares
outstanding increased to 41.6 million in the first quarter."

"We are pleased with the double-digit growth rate of industrial
motors during the first quarter as well as the progress of our
integration.  We owned Dodge and Reliance for nine weeks during
the quarter.  We are more optimistic now than we were in the
fall about the opportunities we see to bring the best
together - Baldor/Dodge/Reliance."

Mr. McFarland continued, "To further strengthen our management
team, we have hired George Moschner as Baldor's new Chief
Financial Officer.  George was previously a partner with BKD,
LLP, and has over 25 years of public accounting experience,
particularly in accounting, auditing, tax and financial
reporting.  We are very pleased to have George as a new member
of our team."

Sales for the quarter ended March 31, 2007 increased 8%. This
comparison is based on 13 weeks of Baldor sales and 9 weeks of
Dodge/Reliance sales during the first quarter of 2006.  
Industrial motor sales (63% of revenue) were up 13%, power
transmission products (23% of revenue) were flat, drives sales
(8% of revenue) were down slightly, and generator sales (3% of
revenue) were up 13%.

International sales (13% of revenue) were up 8% for the quarter,
with the highest growth in Latin America and Europe.

The company saw sales growth across most industries, including
the farm machinery, HVAC, aggregate and oil and gas markets,
particularly in oil sands development in Canada.  The company
also saw some softening in the mining industry.

The company continued to improve its product designs to use less
material, invest in equipment to achieve higher productivity and
negotiate purchasing synergies.  These efforts, and price
increases on motors during the second quarter, should offset the
higher material costs the company is experiencing.

Following the acquisition, the company had US$1.56 billion in
total debt.  The company repaid US$50 million of debt during the
quarter after receiving US$46 million from the issuance of
additional common shares related to the January offering.  
During 2007, the company expects to pay its shareholders over
US$30 million in dividends and invest US$35 million in capital
equipment.  The company's goal for the year is to reduce its
debt by at least US$125 million.

The company disclosed that many integration activities are under
way, although the financial benefit to the first quarter was
minimal.  Some of the integration activities include:

   * Purchasing - Opportunities for cost improvement have been
     identified and suppliers are being contacted for updated
     quotations.  The company believes it will exceed its cost
     improvement goal.

   * Plant Consolidations - Two plant consolidations are in
     process.  The Baldor generator plant in Mukwonago,
     Wisconsin was closed at the end of April, and the Reliance
     motor plant in Madison, Indiana will be closed at the end
     of June.  No other plant closings are anticipated.

   * Information Systems Consolidation - The first consolidation
     of its systems occurred on April 30, with the successful
     movement of Dodge / Reliance payroll processing from an
     outside vendor to Baldor.  Other projects in process
     include the Finance system conversion which is
     expected to be completed during the third quarter.

                     Expectations for 2007

The company said that April sales growth was similar to the
first quarter of 2007, and the company sees no signs this will
not continue.  During the second quarter the company will have
an additional four weeks of sales from the acquisition and four
weeks of additional interest expense.  Beginning in the second
quarter, the company will see the full impact of our January
share offering, and average shares outstanding will increase to
approximately 46.5 million.

                     About Baldor Electric

Baldor Electric Company is a manufacturer of industrial electric
motors, drives and generators.  Baldor is headquartered in Fort
Smith, Arkansas.   Power Systems is a leading provider of Dodge
power transmission products, including mounted bearings and
enclosed gearing, and Reliance Electric industrial motors,
including large AC and custom, variable speed and specialty, and
small and medium AC motors.  The company has offices in Mexico.

                        *     *     *

Moody's Investors Service affirmed on Jan. 26, 2007, the B1
corporate family rating of Baldor Electric Company along with
the Ba3 ratings for the proposed senior secured credit
facilities and B3 ratings for the proposed US$550 million senior
unsecured notes following the company's disclosure that the
company intends to eliminate a preferred stock issuance from its
previously announced financing plans.  Moody's said the rating
outlook is stable.  These first-time ratings are subject to
final documentation.


BALLY TOTAL: Don Kornstein Replaces Barry Elson as Acting CEO
-------------------------------------------------------------
Barry R. Elson will step down as Bally Total Fitness Holding
Corporation's acting CEO effective May 31, 2007.  He will
facilitate a transition of his responsibilities by providing the
company consulting services over the following 90 days and by
continuing to serve as a Director.  The company, which has an
active search ongoing for a permanent chief executive officer,
said that Don R. Kornstein will assume the new role of Chief
Restructuring Officer, continue to serve as interim Chairman of
the Board and facilitate the transition relating to Mr. Elson
stepping down as CEO.

Mr. Kornstein stated, "On behalf of the Board of Directors,
senior field and corporate management and the entire Bally
staff, I wish to acknowledge Barry's outstanding contributions
to Bally Total Fitness as acting CEO.  Barry's strong
commitment, leadership and focus on operational improvements are
resulting in significant changes across the company and we
appreciate his efforts and look forward to his future
contributions.  By building on Barry's accomplishments and
working with our creditors, we look forward to establishing a
strong and stable financial foundation and implementing a new
vision for Bally Total Fitness."

Mr. Elson added, "Over the past nine months, we have been
aggressively pursuing literally dozens of initiatives to enhance
the Bally Total Fitness member experience.  As a result of
comprehensive marketing research studies, the Company is
significantly better positioned to more effectively target its
marketing and retention efforts.  We now have for the first time
a much richer understanding of our members' needs and what we
have to do to retain more of our existing members and who to
target as our better prospects.  Bally Total Fitness has a
strong brand franchise and customer base and both of these
factors will be leveraged in moving the Company forward."

Mr. Kornstein was elected to the Bally Board of Directors in
January 2006 and was named interim Chairman in August 2006.  He
is founder and managing member of Alpine Advisors LLC, a
strategic, financial and management consulting firm serving a
broad range of companies.  Prior to founding Alpine Advisors,
Mr. Kornstein served as Chief Executive Officer, President and
Director of Jackpot Enterprises Inc., a New York Stock Exchange-
listed company.  Mr. Kornstein was also a Senior Managing
Director in the investment-banking department of Bear, Stearns &
Co. Inc. for 17 years.

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

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
April 19, 2007, Moody's Investors Service downgraded all the
credit ratings of Bally Total Fitness Holding Corp. after its
failure to make the April 16, 2007 interest payment on US$300
million principal amount of senior subordinated notes.  Bally
Total's failure to make the interest payment on the subordinated
notes constitutes an event of default under the indenture
governing its US$235 million of senior notes and, upon the
expiration of the applicable grace period, will constitute an
event of default under the subordinated notes indenture.
Moody's downgraded the Probability of Default Rating to D and
the Corporate Family Rating to Ca.  Moody's changed the rating
outlook from negative to stable.

These ratings were downgraded:

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

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

   -- Corporate family rating, to Ca from Caa3

   -- Probability of default rating, to D from Caa3


CASINO GUICHARD-PERRACHON: Creates Colombian JV with Cencosud SA
----------------------------------------------------------------
Casino Guichard-Perrachon S.A. and Cencosud S.A. signed on May 2
a partnership agreement creating a joint venture to develop the
DIY business in Colombia and setting the framework to
potentially enter into other Latin American markets.

Subject to execution of final agreements, this entity shall be
capitalized with up to US$200 million from Cencosud and Casino
to be contributed over the next five years.  Cencosud will hold
a 70% stake in the Joint Venture and Casino shall own the
remaining 30%.

Casino will be involved at the board level, contributing its
global retail expertise and local market knowledge, retaining
certain governance and minority rights, and actively
participating in setting both the short-term goals and the
long-term strategy of the new entity.  

Cencosud will bring its know how and DIY sector expertise to the
joint venture and will be responsible for the implementation of
the strategy and the day-to-day management of the joint venture.

It is the intention of the parties to implement the joint
venture in an expedient manner and pursue an aggressive
expansion strategy to capitalize on the current momentum of the
Colombian retail market and exploit the opportunities available
in this segment.

This entity will complement Casino's leading presence in
Colombia, through its existing participation in Exito, the
largest food retailer in this market, and will be Cencosud's
entry vehicle into the country.

Cencosud is a leading multi-format retailer in Chile and
Argentina.  As of March 31, 2007, the company operates 35 Jumbo
hypermarkets, 118 Santa Isabel supermarkets, 239 supermarkets
under the brand names Disco and Vea, 50 Easy Homecenter stores,
24 Paris department stores, 20 shopping centers, 7 Aventura
Center entertainment centers and 50 Banco Paris branch offices.

Headquartered in Saint-Etienne, France, Casino Guichard-
Perrachon S.A. -- http://www.casino.fr/-- is the leading  
convenience store operator in France.  The company owns and
operates around 9,300 hypermarkets, supermarkets, restaurants,
convenience stores, and discount stores.

It has 2,000 outlets in 12 countries worldwide, including
Brazil, Mexico, Thailand, and the U.S.

                        *     *     *

As reported on Sept. 29, 2006, Fitch Ratings upgraded Casino
Guichard Perrachon's EUR600 million perpetual preferred constant
maturity swap securities to BB+ from BB and classified it as a
Class C security with 50% equity credit.


CLEAR CHANNEL: Board Rejects New Terms of Buyout Offer
------------------------------------------------------
The board of directors of Clear Channel Communications Inc. has
rejected the new terms and structure of the proposed merger
between the Company and the private equity group co-led by Bain
Capital Partners, LLC and Thomas H. Lee Partners, L.P.

The amended term sheet the board received contemplates:

   (i) an increase in the merger consideration to be paid to
       unaffiliated shareholders from US$39 to US$39.20 per
       share, a 0.5% increase, and

  (ii) the opportunity for each shareholder to elect between
       cash and stock in the surviving corporation in the merger
      (up to an aggregate cap equivalent to 30% of the
       outstanding shares immediately following the merger (or
       approximately 6% before the merger)).  

Under this proposal, each of L. Lowry Mays, Mark Mays and
Randall Mays (and their affiliates) and each director of the
Company would be entitled to receive US$37.60 per share in cash
for each share of common stock (and options) held by them (or in
the case of a rollover, shares with a value of US$37.60 per
share), in lieu of the US$39.20 per share.  Following the
consummation of the merger, the shares would trade over the
counter, and not be listed on any national stock exchange.  

Acceptance of the proposal would result in a delay in the
special meeting to consider the merger, currently scheduled for
May 8 by as much as 90 days in order to allow the Company an
opportunity to prepare, file and process a registration
statement with the U.S. Securities and Exchange Commission and
distribute it to the Company's shareholders.

The board concluded to convene the special meeting of
shareholders scheduled to take place on May 8 and allow the
shareholders to vote on the existing merger proposal.

                     About Clear Channel

Based in San Antonio, Texas, Clear Channel Communications Inc.
(NYSE:CCU) -- http://www.clearchannel.com/-- is a global media     
and entertainment company specializing in "gone from home"
entertainment and information services for local communities and
premiere opportunities for advertisers.  The company's
businesses include radio, television and outdoor displays.  
Outside U.S., the company operates in 11 countries -- Norway,
Denmark, the United Kingdom, Singapore, China, the Czech
Republic, Switzerland, the Netherlands, Australia, Mexico and
New Zealand.

                        *     *     *

As reported in the Troubled Company Reporter on April 23,
Standard & Poor's Ratings Services lowered its corporate credit
and senior unsecured debt ratings on Clear Channel
Communications Inc. to 'B+' from 'BB+'.  The ratings remain on
CreditWatch with negative implications, where they were placed
on Oct. 26, 2006, following the company's announcement that it
was exploring strategic alternatives to enhance shareholder
value.


CLEAR CHANNEL: Provides Additional Updates on Radio Divestitures
----------------------------------------------------------------
Clear Channel Communications, Inc. provided additional updates
on the divestiture process for its departing radio markets.

Clear Channel previously announced that it was attempting to
divest 448 radio stations in 88 markets.  To date Clear Channel
has entered into definitive agreements to sell 362 radio
stations in 72 markets for a total consideration of
approximately US$820 million.  Since its most recent update on
April 26, 2007, the company has signed definitive agreements
with various parties to sell 201 stations in 38 markets.  The
company expects these transactions to close during the second
half of 2007.

The company estimates net proceeds after-tax and after customary
transaction costs for all 362 stations now under definitive
agreements will be approximately US$730 million.  Including the
TV Division sale announced on April 20, 2007, Clear Channel
expects to receive approximately US$1.875 billion in after-tax
proceeds after customary transaction costs for broadcasting
stations currently under definitive agreements.  Information on
the treatment of tax loss carry forwards relative to these sales
is provided below.

Clear Channel continues to pursue the divestiture of 86 stations
in 16 markets.  A chart of the remaining radio properties for
sale is included below.  There can be no assurance that any or
all of these stations will ultimately be divested and the
company reserves the right to terminate the sales process at any
time.

All sales and contemplated future divestitures mentioned in this
release are not contingent upon the completion of the separate
merger proposal for Clear Channel Communications, Inc.

                   TAX LOSS CARRY FORWARDS

The company plans to utilize its capital loss carry forward to
offset the related capital gain on the radio transactions.  A
portion of the gain will be considered ordinary gain, not
capital gain, due to depreciation and amortization recapture,
and will be taxed as ordinary income.

There can be no assurance that any of the divestitures
contemplated in this release will actually be consummated and
therefore the company may not receive the proceeds estimated
herein.  Furthermore, there can be no assurance that the company
will be able to utilize tax loss carry forwards to offset
capital gains as contemplated in this release.

Based in San Antonio, Texas, Clear Channel Communications Inc.
(NYSE:CCU) -- http://www.clearchannel.com/-- is a global media
and entertainment company specializing in "gone from home"
entertainment and information services for local communities and
premiere opportunities for advertisers.  The company's
businesses include radio, television and outdoor displays.
Outside U.S., the company operates in 11 countries -- Norway,
Denmark, the United Kingdom, Singapore, China, the Czech
Republic, Switzerland, the Netherlands, Australia, Mexico and
New Zealand.

                        *     *     *

As reported in the Troubled Company Reporter on April 23, 2007,
Standard & Poor's Ratings Services lowered its corporate credit
and senior unsecured debt ratings on Clear Channel
Communications Inc. to 'B+' from 'BB+'.  The ratings remain on
CreditWatch with negative implications, where they were placed
on Oct. 26, 2006, following the company's announcement that it
was exploring strategic alternatives to enhance shareholder
value.


COINSTAR INC: S&P Raises Corporate Credit Rating to BB from BB-
---------------------------------------------------------------
Standard & Poor's Ratings Services raised its ratings, including
the corporate credit rating, on Coinstar Inc. to 'BB' from
'BB-'.  The outlook is stable.
     
The upgrade is supported by continued improvement in financial
metrics for Coinstar, including leverage that was reduced to
1.9x in 2006 and strengthening of other credit protection
measures.
     
The ratings on Coinstar reflect a business characterized by
significant customer concentration, short-term contracts, and
higher operating risks with the growing entertainment services
and e-payment business segments.  Positive considerations
include the company's industry-leading position in automated
coin-counting machines, very satisfactory credit measures, and
strong free cash flow generation.
      
"We expect Coinstar to continue its good operating performance
while successfully integrating recent acquisitions," said
Standard & Poor's credit analyst Jackie E. Oberoi, "but the
weakening of operating results caused by the loss of a
significant retail partner, pricing pressures, or a more
aggressive growth strategy could lead to a negative outlook."

Coinstar, Inc., based in Bellevue, Washington, owns and operates
a multinational, fully automated network of coin processing
kiosks, as well as electronic payment, entertainment services,
and self-service DVD rentals.  The Company owns and operates
nearly 13,000 coin-counting machines in the US, Canada and the
UK, and 320,000 entertainment services (skill-crane, bulk
vending, and kiddie ride) machines across the US and Mexico.  
Additionally, it utilizes more than 19,300 point-of-sale
terminals and owns and operates approximately 360
stand-alone e-payment kiosks in the US and the UK.  The coin-
counting units are located primarily in supermarkets (such as
Kroger and Albertsons); the entertainment services machines can
be found in more than 33,000 retail locations including Wal-Mart
and Kmart stores.


ENTRAVISION COMMS: Posts US$3.1 Mil. Net Loss in 2007 First Qtr.
----------------------------------------------------------------
Entravision Communications Corporation incurred a US$3.1 million
net loss for the three-month period ended March 31, 2007,
compared to a US$12.1 million for the same period in 2006.

Commenting on the company's earnings results, Walter Ulloa,
Chairman and Chief Executive Officer, said, "We entered 2007
with strong momentum across all of our operating segments as we
continued to execute on our business plan to maximize the growth
potential of our assets.  Our robust first quarter performance
reflects our ability to convert our audience share growth into
advertising revenues.  We are very well positioned to continue
to benefit as more and more advertisers seek to penetrate our
fast-growing, densely populated Hispanic markets.  Going
forward, we will continue to explore opportunities to enhance
our asset base as we seek to further improve our operating
leverage and strengthen our footprint in the nation's most
attractive Hispanic markets."

Net revenue increased to US$63.9 million for the three-month
period ended March 31, 2007 from US$59.9 million for the three-
month period ended March 31, 2006, an increase of US$4.0
million.  Excluding the 2006 net revenue contributed by the
company's radio stations in the Tucson and Dallas markets that
the company sold in 2006, net revenue would have increased by
US$5.5 million.  Of the overall increase, US$2.8 million came
from its television segment.  The increase from this segment was
primarily attributable to an increase in both local and national
advertising sales, primarily attributable to an increase in both
advertising rates and inventory sold.  Additionally, US$0.9
million of the overall increase was from its radio segment.  The
increase was primarily attributable to an increase in inventory
sold, partially offset by a decrease in net revenue of US$1.5
million from the company's Tucson and Dallas radio stations that
the company sold.  The remaining increase of US$0.3 million
during the three-month period ended March 31, 2007 was from the
company's outdoor segment, primarily attributable to an increase
in local advertising sales as well as revenue associated with
the expansion of its outdoor division in Tampa.

Company operating expenses increased to US$42.8 million for the
three-month period ended March 31, 2007 from US$41.5 million for
the three-month period ended March 31, 2006, an increase of
US$1.3 million.  Excluding the 2006 operating expenses incurred
by the company's radio stations in the Tucson and Dallas markets
that the company sold in 2006, operating expenses would have
increased by US$2.5 million.  Of the overall increase, US$0.8
million came from its television segment.  The increase from
this segment was primarily attributable to an increase in sales
expenses associated with the increase in net revenue and an
increase in utility and rent expense related to digital
television.  Additionally, US$0.6 million of the overall
increase came from its outdoor segment and was primarily
attributable to an increase in sales expenses associated with
the increase in net revenue, higher lease rents for its
billboard locations and expenses associated with the expansion
of the company's outdoor division in Tampa.  The overall
increase was partially offset by a US$0.1 million decrease in
its radio operating expenses.  The decrease was primarily
attributable to a decrease in operating expenses of US$1.3
million from its Tucson and Dallas radio stations that the
company sold, partially offset by an increase in commissions and
other sales-related expenses associated with the increase in net
revenue and increased wages.

Corporate expenses increased to US$5.0 million for the three-
month period ended March 31, 2007, from US$4.9 million for the
three-month period ended March 31, 2006, an increase of US$0.1
million.  The increase was primarily attributable to higher rent
and professional fees, partially offset by lower bonuses.

                     Pro Forma Segment Results

With the sale of the company's radio assets in the Tucson and
Dallas markets in the third and fourth quarters of 2006,
respectively, the company no longer has any remaining
broadcasting operations in those two markets.  As a result, in
accordance with Company policy, the company has elected to
present its segment information on a pro forma basis by
eliminating its radio broadcasting results from those two
markets for the prior period so that the comparison between the
periods will be meaningful.  The company believes that pro forma
presentation is appropriate and useful to investors when the
Company exits an entire market or enters a new market.

                             Guidance

With the sale of the company's radio assets in Tucson and Dallas
markets in the third and fourth quarter of 2006, respectively,
the company no longer has any remaining broadcasting operations
in those two markets.  As a result, in accordance with Company
policy, the Company has elected to present its guidance on a pro
forma basis by eliminating its radio broadcasting results from
those markets for the prior period so that the comparison
between the periods will be meaningful.  The amounts excluded
from net revenue and operating expenses for the second quarter
of 2006 were US$2,118,000 and US$1,222,000, respectively.

Operating expenses and corporate expenses include non-cash
stock-based compensation to comply with Statement of Financial
Accounting Standards No. 123 (Revised 2004), "Share-Based
Payment".  The Company expects approximately US$0.4 million in
operating expenses and US$0.6 million in corporate expenses
related to equity compensation in the second quarter of 2007.

For the second quarter of 2007, the company expects net revenues
to be flat and operating expenses to increase by low to mid
single digit percentages as compared to the second quarter of
2006.  Excluding the non-cash stock-based compensation,
corporate expenses are expected to increase by low single digit
percentages as compared to the second quarter of 2006.  It
should be noted that the Company has difficult revenue
comparisons over the second quarter of 2006 due to significant
revenue earned for World Cup and political in 2006.  Both of
these categories are non-returning in 2007.

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

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
April 10, 2007, Standard & Poor's Ratings Services revised its
outlook on Entravision Communications Corp. to positive from
stable.  At the same time, Standard & Poor's affirmed its 'B+'
long-term corporate credit rating on the company.  The company
had US$497.8 million of total debt outstanding as of
Dec. 31, 2006.


FEDERAL-MOGUL: Creditors Vote to Accept Fourth Amended Plan
-----------------------------------------------------------
Federal-Mogul Corporation and its debtor-affiliates' balloting
agent, The Garden City Group Inc., delivered to the United
States Bankruptcy Court for the District of Delaware on
May 1, 2007, a summary of the ballots cast on the Debtors'
Fourth Amended Joint Plan of Reorganization.

Jeffrey S. Stein, vice president of The Garden City Group,
discloses that majority of the Voting Classes voted to accept
the Fourth Amended Plan.

Among the Classes that fully support the Plan are:

   Voting Class                    No. of Votes   Vote Value
   ------------                    ------------   ----------
   1B, FMC - Bank Claims                 68    US$1,073,788,242

   1L, FMC - Affiliate Claims            26       1,093,536,678

   25L, F-M Global - Affiliate Claims     2       1,802,613,599

   11J, F-M Sealing Systems (Slough)
      - Asbestos PI Claims               13,083     146,663,204

   12J, F-M Friction Products
      - Asbestos PI Claims               18,064     222,489,896

   13J, F-M Mogul Sealing Systems
      (Rochdale) - Asbestos PI Claims    12,700     141,906,215

   83J, Washington Chemical
      - Asbestos PI Claims               17,944     210,069,522

Among the Voting Classes where more than 5% of its members voted
against the Plan are:

                                           Share of
                                         Disapproving
  Voting Class                              Votes     Vote Value
  ------------                          ------------  ----------
  15H, F-M Bradford - Unsecured Claims       6.81%         US$3
  16H, F-M Camshafts - Unsecured Claims      5.26%        3,412
  19H, TBA Industrial - Unsecured Claims    14.28%        1,265
  32H, T&N Industries - Unsecured Claims    20.00%       12,826
  40H, F-M Bridgewater - Unsecured Claims    6.25%          635
  69H, J.W. Roberts - Unsecured Claims      96.61%      407,454

A two-page Ballot Summary for Class 5J-1, broken down by
disease, is available for free at
http://ResearchArchives.com/t/s?1e64

A 63-page list of the Ballot Summary for the other Voting
Classes is available for free at
http://ResearchArchives.com/t/s?1e65

As previously approved by the Court, votes cast to accept or  
reject the Third Amended Joint Plan of Reorganization by Classes
A, B, D, F, H, L, M, N and O were counted for purposes of
computing the acceptance or rejection of the Fourth Amended
Plan.

Votes cast to accept or reject the Third Amended Plan by Classes
C, H-UK, I, and J were also counted for purposes of computing
acceptance or rejection of the Fourth Amended Plan except to the
extent that those votes were changed by the claimholders in
connection with the solicitation of the Fourth Amended Plan.

Garden City identified around 415 Ballots that were invalid and
not counted for the approval or rejection of the Plan.

                  Plan Proponents Seek Protection
                   from Plan-Related Depositions

The Debtors, the Official Committee of Asbestos Claimants, the
Legal Representative for Future Asbestos Claimants, and Cooper
Industries, LLC, seek a protective order precluding certain
deposition notices served by, among others, Mt. McKinley
Insurance Company and PepsiAmericas Inc.

The Deposition Notices seek to discover, among others, the
fairness of the Fourth Amended Plan, the Plan's compliance with
the requirements under Section 1129 of the Bankruptcy Code, the
Debtors' assets and liabilities, and facts underlying the Plan.

The Deposition Notices are harassing, unduly burdensome, and a
transparent attempt to delay confirmation of the Plan, the
Debtors complain.

The Plan is insurance neutral and preserves the rights of the
Propounding Parties, the Plan Proponents maintain.

In response, the Propounding Parties assert that they are
parties-in-interest and have standing to conduct the Depositions
pursuant to Sections 1128(b) and 1109(b) of the Bankruptcy Code.

The Propounding Parties ask the Court to compel the Plan
Proponents to provide supplemental responses that fully address
their discovery requests.

Subsequently, at the Court's direction, Mt. McKinley and
PepsiAmericas conferred with the Plan Proponents and the Pneumo
Protected Parties, and agreed to narrow the issues they raised
in their request for complete responses to their Discovery
Requests.

Nevertheless, Mt. McKinley urges the Court to compel the Plan
Proponents to produce all documents and communications
addressing "insurance neutrality."

                       About Federal-Mogul

Headquartered in Southfield, Michigan, Federal-Mogul Corporation
-- http://www.federal-mogul.com/-- is an automotive parts  
company with worldwide revenue of some US$6 billion.  Federal-
Mogul also has operations in Mexico and the Asia Pacific Region,
which includes, Malaysia, Australia, China, India, Japan, Korea,
and Thailand.  

In Europe, the company maintains operations in Belgium, France,
Germany, Poland and the United Kingdom.

The Company filed for chapter 11 protection on Oct. 1, 2001
(Bankr. Del. Case No. 01-10582).  Lawrence J. Nyhan Esq., James
F. Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown
& Wood, and Laura Davis Jones Esq., at Pachulski, Stang, Ziehl,
Young, Jones & Weintraub, P.C., represent the Debtors in their
restructuring efforts.  When the Debtors filed for protection
from their creditors, they listed US$10.15 billion in assets and
$8.86 billion in liabilities.  Federal-Mogul Corp.'s U.K.
affiliate, Turner & Newall, is based at Dudley Hill, Bradford.
Peter D. Wolfson, Esq., at Sonnenschein Nath & Rosenthal; and
Charlene D. Davis, Esq., Ashley B. Stitzer, Esq., and Eric M.
Sutty, Esq., at The Bayard Firm represent the Official Committee
of Unsecured Creditors.

On March 7, 2003, the Debtors filed their Joint Chapter 11 Plan.
They submitted a Disclosure Statement explaining that plan on
April 21, 2003.  They submitted several amendments and on
June 6, 2004, the Bankruptcy Court approved the Third Amended
Disclosure Statement for their Third Amended Plan.  On July 28,
2004, the District Court approved the Disclosure Statement.  The
estimation hearing began on June 14, 2005.  They then submitted
a Fourth Amended Plan and Disclosure Statement on Nov. 21, 2006,
and the Bankruptcy Court approved that Disclosure Statement on
Feb. 6, 2007.  The confirmation hearing is set for June 8, 2007.
(Federal-Mogul Bankruptcy News, Issue No. 135; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000).


FENDER MUSICAL: S&P Assigns B+ Rating on US$200-Mil. Term Loan
--------------------------------------------------------------
Standard & Poor's Ratings Services affirmed the 'B+' corporate
credit rating on Fender Musical Instruments Corp. and revised
the outlook to stable from negative.  At the same time, Standard
& Poor's assigned a 'B+' rating, the same as the corporate
credit rating, to the company's US$200 million senior secured
term loan facility, with a recovery rating of '3', indicating
that lenders could expect meaningful (50%-80%) recovery of
principal in the event of a payment default.  The company will
also procure a new US$100 million asset-based revolving credit
facility (unrated).
     
The revised outlook is based on Fender Musical achieving its
May 2006 bank model for fiscal 2006 and maintaining appropriate
credit protection measures and liquidity.
     
"We believe the company's improved infrastructure, which has
contributed to significantly improved inventory management, will
help the company maintain operating stability over the
intermediate term," said Standard & Poor's credit analyst
Kenneth Shea.  "The new bank facility will also result in lower
interest expense, enhancing the company's liquidity and credit
measures."
     
The ratings are based on Fender Musical's high debt leverage and
narrow business focus, and the discretionary nature of its
products.  These factors are somewhat mitigated by the company's
strong market share and global brand names in the guitar-and
amplifier-segment, including Fender, Squier, Gretsch, and Guild.

Scottsdale, Ariz.-based Fender Musical Instruments Corp.--
http://www.fender.com/-- is the world's foremost manufacturer  
of guitars, basses, amplifiers and related equipment.  The FMIC
family includes several other distinctive musical instrument
brands: Charvel(R), Gretsch(R), Guild(R), Jackson(R),
Olympia(R), Orpheum(R), SWR(R), Squier(R) and Tacoma(R).  FMIC
also manufactures a complete line of professional audio
equipment under the Fender brand, including the Passport(R)
portable sound system.  Fender also offers a complete line of
accessories, including strings, authorized replacement parts,
cases, straps and clothing among others.

FMIC's U.S. facilities are located in Arizona, California,
Tennessee and Washington, with international facilities in
England, France, Germany, Japan, Mexico, Spain and Sweden.


GRUPO IMSA: Ternium Takeover Deal Cues S&P's CreditWatch Action
---------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'BB+' long-term
corporate credit rating on Grupo Imsa S.A.B. de C.V. on
CreditWatch with developing implications after the company
announced an agreement to be acquired by Ternium S.A.

The CreditWatch placement means the ratings could be raised,
lowered, or affirmed depending on a currently unknown sequence
of events, including financing, financial policies, and
regulators' approval.

"We will resolve the CreditWatch only after the companies
outline the final financing terms," said Standard & Poor's
credit analyst Juan Pablo Becerra.

The rating on Grupo Imsa is based on the company's aggressive
financial risk profile, particularly its financial policy; its
high capital expenditure program for the next years; the highly
cyclical steel industry; its limited product diversification;
and its high supplier concentration.  The ratings also consider
the company's geographic diversification, state-of-the-art
production technology, above-average operating efficiency, and
leading market position in Mexico.

Headquartered in Mexico, Grupo IMSA, S.A. de C.V. --
http://www.grupoimsa.com/-- is a diversified industrial company
that conducts its business in three segments: steel processing
products, steel and plastic construction products and aluminum
and other related products.  The company's products include
galvanized metal, painted metal, aluminum for construction,
glass fiber and painted laminates.  The company operates through
its wholly owned subsidiary holding companies: IMSA ACERO S.A.
de C.V., IMSATEC S.A. de C.V., and IMSALUM S.A. de C.V.  The
company exports its products to the United States, Canada,
Mexico, Europe and Central and South America.


INTERTAPE POLYMER: Inks Pact Selling Stake to Littlejohn Fund
-------------------------------------------------------------
Intertape Polymer Group Inc. disclosed that Littlejohn & Co.
LLC's indirect wholly owned subsidiary, Littlejohn Fund III
L.P., will acquire all of the company's outstanding common
shares at a price of US$4.76 per share in cash pursuant to a
definitive agreement entered into by Intertape and the
subsidiary.  Including net debt outstanding, the total
transaction value is approximately US$500 million.

The non-management members of the board of directors of the
company, after considering a number of factors, have unanimously
approved the Arrangement and agreed to recommend that the
company's shareholders approve the proposed Arrangement.

TD Securities Inc., as financial advisor to the company's board,
has concluded that as at May 1, 2007, the consideration to be
received under the Arrangement is fair, from a financial point
of view, to the holders of the company's common shares.

"The signing of the Arrangement Agreement is the result of the
review of strategic alternatives that was initiated by the Board
in October 2006 with the objective of enhancing value for all of
the company's shareholders," Michael L. Richards, chairman of
the board of directors of the company, said.  "During the course
of this review, the board, with the assistance of TD Securities,
evaluated a comprehensive range of value maximization
alternatives for the company in the context of its existing
capital structure and current operating environment.  These
alternatives included the sale of the company, raising
additional equity, and the sale of one or more of the company's
businesses to provide greater financial flexibility.  This value
maximization process included numerous strategic and financial
parties."

"Intertape represents an opportunity for Littlejohn to invest in
a market leader and work closely with their management team to
generate operating performance improvements and drive growth."
Edmund J. Feeley, Partner of Littlejohn, said.  "Based on
Littlejohn's successful track record of investing in companies
like Intertape, Littlejohn is confident that it can add value."

Pursuant to the Arrangement, holders of the outstanding common
shares of the company would receive US$4.76 cash per share,
which represents a 5.5% premium over the volume weighted average
trading price on the NYSE over the 30 trading days prior to
today's disclosure.

"The board has carefully weighed the Arrangement against
alternatives available to the company, and has determined that
the Arrangement provides the best value available to the
company's shareholders," Michael L. Richards further stated.  
"Each member of the board intends to vote his shares in favor of
the Arrangement," he added.

"This transaction is also positive for the company's employees,
customers and suppliers as Littlejohn is dedicated to continue
to build on the strong market position of Intertape going
forward, H. Dale McSween, interim chief executive officer of the
company," said.

The transaction will be implemented by way of a court-approved
plan of arrangement under Canadian law and accordingly, subject
to the approval of two-thirds of the votes cast by the company's
shareholders at a special meeting of shareholders anticipated to
take place in late June 2007.  In addition, the Arrangement will
require approval by the Superior Court of Quebec in the District
of Montreal.  The transaction will be subject to certain other
customary conditions described in the Arrangement Agreement,
including receipt of a limited number of regulatory approvals
and no material adverse change in the company's business.  The
transaction is not subject to any financing condition.  
Littlejohn has received a commitment for the required debt
financing and Littlejohn Fund III L.P. intends to fund the
equity required to complete the transaction.  It is anticipated
that the Arrangement, if approved by the company's shareholders,
will be completed early in the third quarter of 2007.

The Arrangement Agreement also provides a non-solicitation
covenant on the part of the company, a right in favor of
Littlejohn to match any superior proposal and the payment of a
termination fee to Littlejohn in the amount of $5.9 million
under certain circumstances.

                 About Littlejohn & Co. LLC

Based in Greenwich, Connecticut, Littlejohn & Co. LLC --
http://www.littlejohnllc.com/-- is a private equity firm that  
makes control equity investments in mid-sized companies that are
underperforming their potential and can benefit from its
operational and strategic approach.  The company acts as a
change agent and works closely with management to establish
viable operating strategies, reinvigorate marketing and product
initiatives, maximize the utilization of operating assets and
establish a framework in which all corporate constituents-
customers, employees, suppliers, management and equity
interests-are aligned towards a common goal of success.  The
firm manages three investment funds with committed capital of
US$200 million (Fund I), US$530 million (Fund II), and US$650
million (Fund III).

                   About Intertape Polymer

Intertape Polymer Group (TSX: ITP) (NYSE: ITP) --
http://www.intertapepolymer.com/-- develops and manufactures   
specialized polyolefin plastic and paper based packaging
products and complementary packaging systems for industrial and
retail use.  Headquartered in Montreal, Quebec and
Sarasota/Bradenton, Florida, the company employs approximately
2450 employees with operations in 18 locations, including 13
manufacturing facilities in North America, one in Europe and in
Mexico.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Nov. 22, 2006, Standard & Poor's Ratings Services lowered its
corporate credit and senior secured ratings on Intertape Polymer
Group Inc. to 'B-' from 'B+'.  In addition, the rating agency
lowered its senior subordinated rating on Intertape to 'CCC'
from 'B-'.


VITRO SAB: Reports Six Percent Rise on Consolidated Sales
---------------------------------------------------------
Vitro S.A.B. de C.V. reported first quarter 2007 unaudited
results.  Year over year consolidated sales increased 6.0
percent and EBITDA rose 30.0 percent.  The consolidated EBITDA
margin increased 290 basis points to 15.9 percent for the
quarter.  Excluding the divestiture of Quimica M in March 2006
and the acquisition of Vidrios Panamenos (VIPASA) in April 2006,
consolidated sales rose 5.3 percent and consolidated EBITDA
increased 29.0 percent year over year.
    
Federico Sada, Chief Executive Officer, commented, "We began
2007 with yet another very solid quarter, one in which Vitro has
emerged as a transformed company following the successful
completion of our financial plan.  On a comparable basis, we
achieved the highest consolidated EBITDA for a first quarter
since 1Q'01."
    
"We are pleased to welcome Enrique Osorio to our solid
management team as Chief Financial Officer.  He brings to Vitro
broad experience and financial expertise.  We look forward to
working together as we continue building the New Vitro," Mr.
Sada closed.
    
Enrique Osorio, Chief Financial Officer, noted, "I am delighted
to join Vitro and to be a part of the process of taking the
company to the next step in its long term strategy.  Vitro today
is a focused and solid company that has accomplished a great
deal and will continue building on its two strong glass
businesses."
    
"Glass Containers continued reporting outstanding performance,
with comparable EBITDA at an all-time high for a first quarter.
High production volumes and capacity utilization, coupled with
an effective cost control program has translated into strong
EBITDA generation," mentioned Alfonso Gomez Palacio, President
of the Glass Containers business unit.
    
Commenting on the Flat Glass business unit, its President Hugo
Lara said, "We are happy to see 27 percent Year over Year EBITDA
growth at the unit.  Going forward, we expect Flat Glass'
construction sales to grow at around 6 to 7 percent which are
likely to compensate for an anticipated slowdown at the OEM auto
markets."
    
All figures provided in this announcement are in accordance with
Mexican Financial Reporting Standards or MFRS issued by the
Mexican Board for Research and Development of Financial
Reporting Standards or CINIF, except otherwise indicated.  
Dollar figures are in nominal US dollars and are obtained by
dividing nominal pesos for each month by the end of month fix
exchange rate published by Banco de Mexico.  In the case of the
Balance Sheet, US dollar translations are made at the fix
exchange rate as of the end of the period.  Certain amounts may
not sum due to rounding.  All figures and comparisons are in US$
terms, unless otherwise stated, and may differ from the peso
amounts due to the difference between inflation and exchange
rates.

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

                        *     *     *

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

The rating assigned:

   Vitro, SAB de CV:

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

The ratings affirmed:

  Vitro, SAB de CV:

  -- Corporate Family at B2;

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

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

The ratings outlook changed to stable from negative.

Vitro Envases Norteamerica, SA de CV:

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

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

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

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


WCM BETEILIGUNGS: CURA Seniorencentrum Buys 71.8% Maternus Stake  
----------------------------------------------------------------
CURA Seniorencentrum GmbH has become a new majority partner of
MATERNUS-Kliniken AG, effective April 26, after it acquired WCM
Beteiligungs- und Grundbesitz-AG's 71.8% stake in the German
nursing home.

Michael Frege, the insolvency administrator for WCM, has sold
the Maternus stake, which is valued at around EUR28 million, to
Cura, The Financial Times reports citing Borsen Zeitung as its
source.

According to the report, WCM may have used the proceeds of the
acquisition to repay debts owed to major creditor HSH Nordbank
AG.

Mr. Frege disclosed that he is still looking into WCM's
remaining investments and the losses that it has carried
forward, FT relates.

                    Preliminary Agreement

On March 22, WCM Beteiligungs- und Grundbesitz-AG, WCM
Beteiligungs- und Verwaltungs GmbH & Co KG and WCM Beteiligungs-
und Verwaltungs GmbH concluded a preliminary agreement to sell
close to a 71.5% stake in MATERNUS-Kliniken AG and a 95% stake
in YMOS AG to CURA Kurkliniken, Seniorenwohn-und Pflegeheime
Aktiengesellschaft.

Furthermore the stake MEDICO Grundstuecksgesellschaft mbH & Co
Bayerwald Klinik KG indirectly held by WCM Beteiligungs- und
Verwaltungs GmbH will also be sold.

In the preliminary agreement, the right to terminate the
contract in favor of the bankruptcy administrator has been
agreed.  The preliminary contract is subject to approval by the
executive boards of the contracting parties.

WCM applied for insolvency on Nov. 8, 2006, as a result of the
extraordinary termination of the loan agreement by HSH Nordbank.  
The District Court of Frankfurt (Main) opened bankruptcy
proceedings against the company on Nov. 21, 2006.

                        About WCM AG

Headquartered in Frankfurt, Germany, WCM Beteiligungs- und
Grundbesitz-AG -- http://www.wcm.de/-- holds equity interests  
in other real estate investment, management, and development
companies, as well as in the nursing homes and a packaging
maker.  The group owns 80% of Klockner-Werke AG, which also
operates in Austria, Czech Republic, Denmark, France, United
Kingdom, Italy, Netherlands, Spain, Switzerland, Australia,
Brazil, India, Japan, Mexico, Russian Federation, Singapore, and
the U.S.A.

WCM has been posting consecutive annual net losses of EUR849
million in 2002; EUR315 million in 2003; EUR163 million in 2004;
and EUR44 million in 2005.




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


AMERICAN AIRLINES: Launches New Service with Cable & Wireless
-------------------------------------------------------------
Cable & Wireless has launched a new service with American
Airlines to allow b-mobile postpaid clients to redeem their
reward points for AA Advantage Miles, Caribbean Broadcasting
Corporation reports.

The AA Advantage program is American Airlines' travel awards
program.  It was the original travel awards program established
more than 20 years ago.  AA Advantage members earn miles each
time they purchase an eligible published-fare ticket and fly on
American Airlines, AmericanConnection, American Eagle, or any of
the more than 21 airline partners.  They also earn bonus miles
for flying on an eligible purchased-fare Business Class or First
Class ticket on American Airlines or any of our airline partners
as follows:

    -- An additional 25% of flight mileage flown in Business
       Class, or

    -- An additional 50% of flight mileage flown in First Class.

According to CBC, each b-mobile reward point is valued at US$1.  
It will grant Cable & Wireless mobile subscribers four Advantage
Miles.

Collaborations with other firms are strategies the company will
take going forward, CBC notes, citing Cable & Wireless.

Cable & Wireless Marketing Manager Emmerson Hewitt told CBC that
the company is still seeing growth in market share.

                   About Cable & Wireless

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

                   About American Airlines

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

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
April 12, 2007, Standard & Poor's Ratings Services affirmed its
ratings on American Airlines Inc. (B/Positive/--) and parent AMR
Corp. (B/Positive/B-2).  S&P said the rating outlook was revised
to positive from stable.


CABLE & WIRELESS: Launches New Service with American Airlines
-------------------------------------------------------------
Cable & Wireless has launched a new service with American
Airlines to allow b-mobile postpaid clients to redeem their
reward points for AA Advantage Miles, Caribbean Broadcasting
Corporation reports.

The AA Advantage program is American Airlines' travel awards
program.  It was the original travel awards program established
more than 20 years ago.  AA Advantage members earn miles each
time they purchase an eligible published-fare ticket and fly on
American Airlines, AmericanConnection, American Eagle, or any of
the more than 21 airline partners.  They also earn bonus miles
for flying on an eligible purchased-fare Business Class or First
Class ticket on American Airlines or any of our airline partners
as follows:

    -- An additional 25% of flight mileage flown in Business
       Class, or

    -- An additional 50% of flight mileage flown in First Class.

According to CBC, each b-mobile reward point is valued at US$1.  
It will grant Cable & Wireless mobile subscribers four Advantage
Miles.

Collaborations with other firms are strategies the company will
take going forward, CBC notes, citing Cable & Wireless.

Cable & Wireless Marketing Manager Emmerson Hewitt told CBC that
the company is still seeing growth in market share.

                   About American Airlines

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

                   About Cable & Wireless

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

                        *     *     *

Cable & Wireless Plc carry these ratings:

    * Moody's Investors Service
    
      -- Long-Term Corporate Family Rating: Ba3
      -- Senior Unsecured Debt: B1
      -- Short-Term: NP
      -- Outlook: Negative

    * Standard & Poor's

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


* PANAMA: S&P Revises BB Sovereign Rating Outlook to Positive
-------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on its
'BB' long-term sovereign credit rating on the Republic of Panama
to positive from stable and affirmed its 'B' short-term foreign
currency sovereign credit rating on the republic.

According to Standard & Poor's credit analyst Lisa Schineller,
the outlook revision reflects the likelihood of an upgrade if
recent improvements in fiscal performance endure, economic
diversification continues to boost real GDP growth, and the
planned expansion of the Panama Canal can be financed in a
manner that does not unduly burden government finances, either
directly or as a contingent liability.

After several years of lackluster growth following the
withdrawal of U.S. troops from the Canal Zone in 1999, economic
growth has not just consolidated, but diversified in Panama.  
Real GDP has expanded at a 7.5% annual rate during the last
three years, and is projected to maintain that pace in 2007 and
2008.

"The foundation for growth has broadened beyond the traditional
sources of canal transit, Colon Free Zone exports, and banking
services, and more resilient growth prospects now incorporate
the expansion of port and transshipping activity,
telecommunications/call centers, as well as tourism and retiree
communities," said Ms. Schineller.  "Leveraging special
favorable labor and tax laws, the development of reverted lands
is advancing (albeit slowly), and impending expansion of the
canal has clearly already enhanced economic opportunities.  
Investments underway anticipate the future boon to economic
activity that the third-set of locks should provide in terms of
increased canal transit, and actual construction activity
associated with canal expansion itself should boost growth
beginning 2009," she added.

Against this favorable economic backdrop, Standard & Poor's
expects the Panamanian government to continue to pursue a
strategy of fiscal consolidation.  Since assuming office in
September 2004, the Torrijos government engineered a turnaround
in Panama's fiscal accounts.  Modest initial improvement gained
traction in 2006 as the full effects of the 2005 tax reform
contributed to outstanding revenue performance, beyond one-off
revenue items.

"The positive outlook assumes that this comparatively short
track record of fiscal improvement remains on course and the
government will keep the general government deficit near 1% of
GDP, furthering a decline in net general government debt from
current levels of 38% of GDP," explained Ms. Schineller.

"This is particularly important given that official
dollarization limits policy options in Panama and canal
expansion could limit fiscal remittances to the government that
now account for 20% of central government revenue," she added.

Ms. Schineller explained that the rating on Panama could be
upgraded following additional evidence of fiscal consolidation,
clarification of the fiscal framework (namely, pending reform of
fiscal responsibility law), and definition on the size and
strategy for financing expansion of the Panama Canal.

Standard & Poor's assumes that the free cash flow of the Panama
Canal Authority or ACP -- after payments of tonnage fees and
dividends to the central government -- will remain robust
throughout the construction period that extends through 2014,
reflecting the canal's competitive position and prospects for
increasing world trade.

ACP's cash-generating capacity, combined with its holdings of
US$1.3 billion in cash and cash equivalents at fiscal year-end
Sept. 30, 2006, supports ACP's financing capacity as it begins
this complex project.  As long as the expansion project remains
on or close to budget-officially estimated at US$5.25 billion
(31% of 2006 GDP), including US$1.1 billion in contingency
costs-Standard & Poor's assumes that the project will pose
limited risk to ACP's payments to the government; namely,
payments of dividends and tonnage fees will be at least the
minimum specified by the 2006 referendum.

"However, should canal expansion impair the government's fiscal
performance or should the government's commitment to fiscal
discipline weaken, the outlook would revert to stable," Ms.
Schineller concluded.




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


GRUPO MEXICO: Peruvian Unit's Miners End Eight-Day Strike
---------------------------------------------------------
Southern Copper Corp.'s miners agreed to resume wage
negotiations with government and end an eight-day strike,
Bloomberg News reports, citing union official Arnaldo Oviedo.

Representatives of the National Federation of Metallurgic and
Steel Miners, which is made up of 74 unions and representing
about 28,000 of Peru's 100,000 mine workers, started a strike on
April 30 demanding for better working conditions for
subcontracted workers.  Of the 74 unions, 33 went on strike.

Peru is among the world's top two silver producers, and is No. 3
in copper and zinc and No. 5 in gold.

Copper futures rose 3.2 cents, or 0.9 percent, to US$3.7585 a
pound yesterday on the Comex division of the New York Mercantile
Exchange. Gold rose US$5.30 to US$689.70 an ounce, and silver
rose 2 cents to US$13.53 an ounce on the Comex.  Zinc for
delivery in three months rose US$140 to US$4,170 a metric ton on
the London Metal Exchange, and tin fell US$25 to US$14,400 a
ton, Alex Emery at Bloomberg News reports.

              About Southern Copper Corporation

Headquartered in Phoenix, Ariz., Southern Copper Corporation
produces copper, molybdenum, zinc, and silver.  It engages in
mining, milling, and flotation of copper ore to produce copper
concentrates and molybdenum concentrates; the smelting of copper
concentrates to produce anode and blister copper; and the
refining of blister/anode copper to produce copper cathodes.  
The company also engages in the mining and processing of gold
and lead, as well as produces refined copper using SX/EW
technology.  It operates the Toquepala and Cuajone mines in the
Andes Mountains, which is located approximately 984 kilometers
southeast of the city of Lima, Peru; and a smelter and refinery
west of the Toquepala and Cuajone mines in the coastal city of
Ilo, Peru.  Southern Copper Corporation has its mining,
smelting, and refining operations in Peru and Mexico, as well as
exploration operations in Chile.

                      About Grupo Mexico

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

                        *     *     *

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




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


ADMINISTRACION NACIONAL: S&P Revises Outlook to Positive
--------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on
Uruguay's 100% state-owned fuel company, Administracion Nacional
de Combustibles Alcohol y Portland or ANCAP, to positive from
stable.  All ratings were affirmed.  

The change in outlook follows the linkage of ANCAP's credit
quality to that of the sovereign.  The consolidation of the
stronger macroeconomic framework is positive for the company's
business environment, which continues to be limited by the risk
inherent in operating as a single-asset refiner.


BANCO BILBAO: S&P Affirms B+/B Counterparty Credit Rating
---------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B+/B' long-term
counterparty credit rating on Banco Bilbao Vizcaya Argentaria
Uruguay.  Standard & Poor's also affirmed the same rating on
Discount Bank Latin America S.A. and Citibank N.A. (Uruguay
Branch).

In addition, Standard & Poor's revised the outlook on its long-
term counterparty credit ratings on Uruguayan banks to positive
from stable as a result of a similar action on the Uruguayan
sovereign ratings.  

"The financial system's operating environment has been gradually
improving in recent years, and the rated Uruguayan banks enjoy
comfortable liquidity and sound financial flexibility," said
Standard & Poor's credit analyst Carina Lopez.


CITIBANK (URUGUAY): S&P Affirms B+/B Counterparty Credit Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B+/B' long-term
counterparty credit rating on Citibank N.A. (Uruguay Branch).  
Standard & Poor's also affirmed the same rating on Discount Bank
Latin America S.A. and Banco Bilbao Vizcaya Argentaria Uruguay.

In addition, Standard & Poor's revised the outlook on its long-
term counterparty credit ratings on Uruguayan banks to positive
from stable as a result of a similar action on the Uruguayan
sovereign ratings.  

"The financial system's operating environment has been gradually
improving in recent years, and the rated Uruguayan banks enjoy
comfortable liquidity and sound financial flexibility," said
Standard & Poor's credit analyst Carina Lopez.


DISCOUNT BANK: S&P Affirms B+/B Counterparty Credit Rating
----------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B+/B' long-term
counterparty credit rating on Discount Bank Latin America S.A.  
Standard & Poor's also affirmed the same rating on Banco Bilbao
Vizcaya Argentaria Uruguay and Citibank N.A. (Uruguay Branch).

In addition, Standard & Poor's revised the outlook on its long-
term counterparty credit ratings on Uruguayan banks to positive
from stable as a result of a similar action on the Uruguayan
sovereign ratings.  

"The financial system's operating environment has been gradually
improving in recent years, and the rated Uruguayan banks enjoy
comfortable liquidity and sound financial flexibility," said
Standard & Poor's credit analyst Carina Lopez.


* URUGUAY: S&P Revises B+ Sovereign Rating Outlook to Positive
--------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on
Uruguay's 'B+' long-term sovereign credit rating to positive
from stable.  The short-term sovereign credit rating is 'B'.

According to Standard & Poor's credit analyst Sebastian Briozzo,
the outlook change reflects expectations that sustained
implementation of the government's economic policy agenda --
both the consolidation of a stronger macroeconomic framework and
the implementation of policy reform -- will increase the chances
of Uruguay continuing its upward rating momentum over the next
two years.

Recent liability management operations, including the
replacement of all IMF indebtedness with longer tenured capital
market debt and additional debt swaps taking advantage of market
conditions, provided additional flexibility to public finances
over the short to medium term.  Uruguay's government was able to
issue a US$500 million 20-year bond indexed to inflation and
denominated in pesos in April 2007.

"The strengthening macroeconomic framework is characterized by
decreasing fiscal and external vulnerabilities, as both general
government debt to GDP and external debt to current account
receipts or CAR of the balance of payment continue to decline,"
said Mr. Briozzo.  "In addition, the ongoing implementation of
tax reform (effective July 1) is another sign of the
government's determination to modernize Uruguay's fiscal and
economic structure," he added.

However, Mr. Briozzo explained that the ratings on Uruguay will
continue to be constrained by a still-high level of external
indebtedness, significant gross external financing requirements,
and a high level of dollarization.

"The country's economic structure is still highly dependent upon
external factors, in particular regional economic performances,
and characterized by low levels of investment," Mr. Briozzo
said.  "While recent economic policies are all directed to
address these vulnerabilities, only a gradual improvement can be
expected over the medium term," he added.

The reduction of Uruguay's fiscal and external vulnerabilities
over the past three years is noteworthy and expected to continue
over the forecast horizon.  Uruguay's net general government
debt is expected to decline to 50% of GDP at year-end 2007, down
from 93% in 2003.  Net public sector external debt also declined
substantially over the same period, and is expected to
constitute 80% of CAR at year-end 2007, compared to a high 212%
in 2003.

Despite the critical improvement, these measures still compare
poorly to the 'B' median's 32% (net general government debt to
GDP) and 43% (net public sector external debt to CAR) estimates
for these two important indicators in 2007.

"The positive outlook reflects the increasing likelihood that
Uruguay's rating could continue its upward trend as a result of
the sustained decline in its fiscal and external
vulnerabilities," noted Mr. Briozzo.  "Given Uruguay's still-
high debt burden and vulnerability to external shocks, fiscal
consolidation remains a requirement for possible upgrades," he
concluded.




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


ARVINMERITOR INC: Incurs US$13 Million Second Quarter Net Loss
--------------------------------------------------------------
ArvinMeritor, Inc., reported financial results for its second
quarter ended March 31, 2007.
    
Highlights for Second-Quarter Fiscal-Year 2007:

    -- Net loss from continuing operations on a GAAP basis was
       US$13 million compared to income of US$32 million in the
       second quarter of fiscal year 2006.

    -- Sales from continuing operations of US$1.6 billion,
       approximately equal to the same period last year.  
       Results for continuing operations exclude the company's
       Emissions Technologies or ET business group now held in
       discontinued operations.

    -- Income from continuing operations, before special items,
       was US$12 million compared to US$24 million in the same
       period last year.

    -- The company expects to achieve targeted annual profit
       improvements of US$150 million through Performance Plus
       cost reductions by 2009; growth opportunities previously
       included in the target should provide incremental
       improvements.

    -- Planned restructuring actions in North America and Europe
       are expected to affect 13 plants and 2,800 employees,
       resulting in an estimated annual run rate savings of
       US$130-US$140 million by 2012.

    -- ArvinMeritor's Chassis Systems business has been
       reinforced to include the Aftermarket Ride Control
       business (Gabriel), which will be restructured and grown.
    
"While second-quarter results did not meet our expectations, we
are pleased with the substantial margin improvement in our LVS
business as our new leadership team becomes fully integrated and
the initiatives identified through our Performance Plus program
begin to take effect," said Chairman, CEO and President Chip
McClure.  "The initial investment we made in Performance Plus
increases our confidence that we can deliver profit improvement
actions which will improve cash flow and increase shareowner
value.  We have committed significant resources to building a
more focused and profitable business model for ArvinMeritor and
we anticipate improved results in 2008 and beyond, achieving
cost savings of US$150 million alone in 2009 from our
Performance Plus cost initiatives," said Mr. McClure.
    
          Fiscal Year 2007 Second-Quarter Results
    
For the second quarter of fiscal year 2007, ArvinMeritor posted
sales from continuing operations of US$1.6 billion,
approximately equal to the same period last year.  Commercial
vehicle sales in Europe improved over 2006, but were offset by
lower volumes in North America due to the early stages of the
Class 8 truck downturn.
    
EBITDA, before special items, in the second quarter of fiscal
year 2007, was US$77 million, down 21 percent, or US$21 million,
from the same period last year.  EBITDA margins, before special
items, for the Light Vehicle Systems or LVS business group, in
the second quarter of fiscal year 2007, were 5.2 percent of
sales compared to 2.8 percent of sales in the same period last
year.  Benefits of the previously announced restructuring
initiatives and cost reductions in material, labor and burden,
and favorable mix toward higher margin products drove the LVS
margin improvement.  EBITDA margins, before special items, in
the Commercial Vehicle Systems or CVS business group, in the
second quarter of fiscal year 2007, were 5.5 percent of sales,
compared to 8.3 percent of sales in the same period last year,
primarily due to higher retiree medical costs, unfavorable
regional mix, and ongoing operations issues in our European CVS
business -- compounded by record truck sales in that region.
    
Income from continuing operations, excluding special items, in
the second quarter of fiscal year 2007, was US$12 million
compared to US$24 million a year ago.  Special items were a net
cost of US$25 million after taxes, and include:

    -- Positive adjustments to previously recorded inventory
       and accounts receivable reserves associated with the
       Aftermarket Ride Control business, net of depreciation
       charges that were previously deferred while the business
       was held for sale

    -- Favorable settlement of certain claims related to prior
       work disruptions

    -- Charges for restructuring and related actions associated
       with manufacturing footprint changes and staff
       realignment actions

    -- Debt retirement costs
    
Losses from discontinued operations totaled US$81 million in the
second quarter of fiscal year 2007.  Included in the loss from
discontinued operations are ET and certain Light Vehicle
Aftermarket businesses in Europe.  The loss from discontinued
operations includes an asset impairment charge totaling US$90
million, after taxes, related to the ET business, based upon the
sale value for the upcoming transaction.
    
                 Update on Performance Plus
    
As previously announced, ArvinMeritor's Performance Plus program
is focused on six areas, three related to cost reductions and
three focused on revenue enhancement.  Since the company
announced this initiative in December 2006, ArvinMeritor now
anticipates incremental savings in excess of what it had
originally targeted.  ArvinMeritor expects restructuring and
cost reductions alone to generate US$150 million in savings by
2009, resulting from:

    -- Restructuring in North America and Europe which will
       affect 13 plants and 2,800 employees estimated to cost
       approximately US$325 million through 2012.

    -- Sourcing opportunities in leading cost-competitive
       countries, lower transportation and freight costs,
       logistics cost savings, and product redesign.

    -- Reductions in overhead.

    -- Improvements to the company's manufacturing operations
       and supply chain management.
    
During the quarter, the company completed several steps toward
achieving targeted growth in Asia, Light Vehicle Systems and
Aftermarket sales including:

    -- New Light Vehicle business awards of US$550 million
       through 2010.

    -- Opening of new operations in Wuxi, China, to service
       trailer customers in China and export operations.

    -- Establishment of an Asian headquarters under the
       leadership of Rakesh Sachdev, newly appointed president
       of Asia Pacific operations.

    -- Approval of plans for a major technical center in China.

    -- Development and expansion of North America Commercial
       Vehicle remanufacturing operations.
    
                 Sale of Emissions Technologies
    
As previously announced, ArvinMeritor signed a definitive
agreement to sell its ET business group to One Equity Partners
or OEP for approximately US$310 million.  OEP has secured all
necessary antitrust approvals to acquire ArvinMeritor's ET
business.  The transaction is expected to be completed in the
third quarter of fiscal year 2007.
    
                    Freezing Pension Plan
    
ArvinMeritor also announced today a freeze of its defined
benefit pension plan for salaried and non-represented employees
in the United States, effective Jan. 1, 2008.  The change will
affect approximately 3,800 employees including certain employees
who will continue to accrue benefits for an additional
transition period, ending June 30, 2011.
    
After these freeze dates, the company will instead make
additional contributions to its defined contribution savings
plan on behalf of the affected employees.  The amount of the
savings plan contribution will be based on a percentage of the
employee's pay, with the contribution percentage increasing as
the employee ages.
    
These changes do not affect current retirees or represented
employees.
    
                           Outlook
    
The company has adjusted its forecast for the balance of fiscal
year 2007.  The company now expects sales from continuing
operations in fiscal year 2007 to be in the range of US$6.0 to
US$6.2 billion, up from our previous range of US$5.9 to US$6.1
billion, and anticipates full-year diluted earnings per share
from continuing operations to be in the range of US$0.70 to
US$0.80, down from US$1.00 to US$1.10.  This guidance excludes
gains or losses on divestitures, restructuring costs and other
special items, including potential extended customer shutdowns
or production interruptions.  Cash flow guidance for fiscal year
2007 remains in the range of US$50 million to US$100 million.
    
"Although we have reduced our forecast for the full fiscal year
due to lower than expected volumes in the North American Class 8
truck market, unfavorable regional mix, and ongoing operational
issues in our European CVS business, we are confident that the
results of our actions this fiscal year will result in a
significant earnings improvement in fiscal 2008 and 2009.  A
strong balance sheet, the divestiture of ET, improvements in the
cost structure of the LVS business, the predicted rebound in the
Class 8 truck market, and a very talented management team --
combined with our aggressive Performance Plus initiatives - will
drive increased value for our shareowners," said Mr. McClure.

Headquartered in Troy, Michigan, ArvinMeritor, Inc. (NYSE: ARM)
-- http://www.arvinmeritor.com/-- is a premier US$8.8  
billion global supplier of a broad range of integrated systems,
modules and components to the motor vehicle industry.  The
company serves light vehicle, commercial truck, trailer and
specialty original equipment manufacturers and certain
aftermarkets.  ArvinMeritor employs approximately 29,000 people
at more than 120 manufacturing facilities in 25 countries.
These countries are: China, India, Japan, Singapore, Thailand,
Australia, Venezuela, Brazil, Argentina, Belgium, Czech
Republic, France, Germany, Hungary, Italy, Netherlands, Spain,
Sweden, Switzerland, United Kingdom, among others.  ArvinMeritor
common stock is traded on the New York Stock Exchange under the
ticker symbol ARM.

                        *     *     *

As reported in the Troubled Company Reporter on Feb. 12, 2007
Dominion Bond Rating Service assigned a rating of BB (low) to
the US$175 million Convertible Senior Unsecured Notes of
ArvinMeritor Inc.  DBRS says the trend is stable.

As reported on on Feb. 6, 2007, Moody's Investors Service has
downgraded ArvinMeritor's Corporate Family Rating to Ba3 from
Ba2.  Ratings on the company's secured bank obligations and
unsecured notes were lowered one notch as a result.

Ratings lowered:

ArvinMeritor Inc.

    -- Corporate Family Rating to Ba3 from Ba2

    -- Senior Secured bank debt to Ba1, LGD-2, 20% from Baa3,
       LGD-2, 18%

    -- Senior Unsecured notes to B1, LGD-4, 65% from Ba3,
       LGD-4, 64%

    -- Probability of Default to Ba3 from Ba2

    -- Shelf unsecured notes to (P)B1, LGD-4, 65% from (P)Ba3,
       LGD-4, 64%

Arvin Capital I

    -- Trust Preferred to B2, LGD-6, 96% from B1, LGD-6, 96%

Arvin International PLC

    -- Unsecured notes guaranteed by ArvinMeritor Inc. to B1,
       LGD-4, 65% from Ba3, LGD-4, 64%

Ratings affirmed:

ArvinMeritor Inc.

    -- Speculative Grade Liquidity rating, SGL-2


ARVINMERITOR INC: Posts US$94 Million Loss for Q2 Ended Mar. 31
---------------------------------------------------------------
ArvinMeritor Inc. reported US$94 million in net losses on
US$1.63 billion in net revenues for the second quarter ended
Mar. 31, 2007, compared with US$45 million in net profit on
US$1.63 billion in net revenues for the second quarter ended
Mar. 31, 2006.

ArvinMeritor Inc. reported US$87 million in net losses on
US$3.19 billion in net revenues for the first half ended
Mar. 31, 2007, compared with US$79 million in net profit on
US$3.09 billion in net revenues for the first half ended
Mar. 31, 2006.

As of Mar. 31, 2007, ArvinMeritor had US$5.5 billion in total
assets, US$4.58 billion in total liabilities and US$918 million
in shareholders' equity.

"While second-quarter results did not meet our expectations, we
are pleased with the substantial margin improvement in our LVS
business as our new leadership team becomes fully integrated and
the initiatives identified through our Performance Plus program
begin to take effect," Chip McClure," Chairman, CEO and
President, said.  "The initial investment we made in Performance
Plus increases our confidence that we can deliver profit
improvement actions which will improve cash flow and increase
shareowner value.  We have committed significant resources to
building a more focused and profitable business model for
ArvinMeritor and we anticipate improved results in 2008 and
beyond, achieving cost savings of US$150 million alone in 2009
from our Performance Plus cost initiatives.

                  Update on Performance Plus

As announced, ArvinMeritor's Performance Plus program is focused
on six areas, three related to cost reductions and three focused
on revenue enhancement.  Since the company announced this
initiative in December 2006, ArvinMeritor now anticipates
incremental savings in excess of what it had originally
targeted.  

ArvinMeritor expects restructuring and cost reductions alone to
generate US$150 million in savings by 2009, resulting from:

   -- restructuring in North America and Europe which will
      affect 13 plants and 2,800 employees estimated to cost
      around US$325 million through 2012;

   -- sourcing opportunities in leading cost-competitive
      countries, lower transportation and freight costs,
      logistics cost savings, and product redesign;

   -- reductions in overhead; and

   -- improvements to the company's manufacturing operations and
      supply chain management.

                   Freezing Pension Plan

ArvinMeritor also disclosed of a freeze of its defined benefit
pension plan for salaried and non-represented employees in the
United States, effective Jan.1, 2008.  The change will affect
approximately 3,800 employees including certain employees who
will continue to accrue benefits for an additional transition
period, ending June 30, 2011.

After these freeze dates, the company will instead make
additional contributions to its defined contribution savings
plan on behalf of the affected employees. The amount of the
savings plan contribution will be based on a percentage of the
employee's pay, with the contribution percentage increasing as
the employee ages.

These changes do not affect current retirees or represented
employees.

                          Outlook

The company has adjusted its forecast for the balance of fiscal
year 2007.  

The company now expects sales from continuing operations in
fiscal year 2007 to be in the range of US$6.0 to US$6.2 billion,
up from our previous range of US$5.9 to US$6.1 billion, and
anticipates full-year diluted earnings per share from continuing
operations to be in the range of US$0.70 to US$0.80, down from
US$1.00 to US$1.10.

This guidance excludes gains or losses on divestitures,
restructuring costs and other special items, including potential
extended customer shutdowns or production interruptions.  Cash
flow guidance for fiscal year 2007 remains in the range of US$50
million to US$100 million.

                   About ArvinMeritor Inc.

Headquartered in Troy, Michigan, ArvinMeritor Inc. (NYSE: ARM)
-- http://www.arvinmeritor.com/-- is a premier US$8.8  
billion global supplier of a broad range of integrated systems,
modules and components to the motor vehicle industry.  The
company serves light vehicle, commercial truck, trailer and
specialty original equipment manufacturers and certain
aftermarkets.  ArvinMeritor employs approximately 29,000 people
at more than 120 manufacturing facilities in 25 countries.
These countries are: China, India, Japan, Singapore, Thailand,
Australia, Venezuela, Brazil, Argentina, Belgium, Czech
Republic, France, Germany, Hungary, Italy, Netherlands, Spain,
Sweden, Switzerland, United Kingdom, among others.  ArvinMeritor
common stock is traded on the New York Stock Exchange under the
ticker symbol ARM.

                        *     *     *

As reported in the Troubled Company Reporter on Feb. 12,
Dominion Bond Rating Service assigned a rating of BB (low) to
the US$175 million Convertible Senior Unsecured Notes of
ArvinMeritor Inc.  DBRS says the trend is stable.

As reported on Feb. 6, Moody's Investors Service has
downgraded ArvinMeritor's Corporate Family Rating to Ba3 from
Ba2.  Ratings on the company's secured bank obligations and
unsecured notes were lowered one notch as a result.

Ratings lowered:

ArvinMeritor Inc.

    -- Corporate Family Rating to Ba3 from Ba2

    -- Senior Secured bank debt to Ba1, LGD-2, 20% from Baa3,
       LGD-2, 18%

    -- Senior Unsecured notes to B1, LGD-4, 65% from Ba3,
       LGD-4, 64%

    -- Probability of Default to Ba3 from Ba2

    -- Shelf unsecured notes to (P)B1, LGD-4, 65% from (P)Ba3,
       LGD-4, 64%

Arvin Capital I

    -- Trust Preferred to B2, LGD-6, 96% from B1, LGD-6, 96%

Arvin International PLC

    -- Unsecured notes guaranteed by ArvinMeritor Inc. to B1,
       LGD-4, 65% from Ba3, LGD-4, 64%

Ratings affirmed:

ArvinMeritor Inc.

    -- Speculative Grade Liquidity rating, SGL-2


CITGO PETROLEUM: Restarts Aromatics Unit at Corpus Christi Plant
----------------------------------------------------------------
Citgo Petroleum Corp. has restarted an aromatics unit at its
Corpus Christi refinery, Reuters reports, citing a notice the
company filed with Texas Commission on Environmental Quality,
Texas' pollution regulation agency.

The unit takes benzene and toulene from gasoline, Reuters
states.

Citgo Petroleum said in notices filed with the agency that it
shut down the unit in April as part of a renovation on the
plant's sulfur recovery system.

As reported in the Troubled Company Reporter-Latin America on
April 24, 2007, Citgo Petroleum said that it closed down two
units at its Corpus Christi refinery for maintenance.  Citgo
Petroleum filed two reports with the Texas Commission on
Environmental Quality.  Citgo Petroleum explained in the reports
that it would shut down a 65,000-barrel per day Unibon unit, as
well as the sulfur recovery unit of the refinery to complete
scheduled maintenance tasks.  The Unibon unit removes sulfur.  
Citgo Petroleum said in one of the filings that the 165,000-
barrel per day refinery would be shut down for six days.  Citgo
Petroleum said in the filings that the initiative would require
emergency flaring or burning off of chemicals.  According to
sources, the maintenance activities would also include the
reformer.

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

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

                        *     *     *

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

Citgo Petroleum carries Fitch's BB- Issuer Default Rating.
Fitch also rates the company's US$1.15 billion senior secured
revolving credit facility maturing in 2010 at 'BB+', its US$700
million secured term-loan B maturing in 2012 at 'BB+', and its
senior secured notes at 'BB+'.


DAIMLERCHRYSLER: Chrysler Sales Up 17% -- Best April in 10 Years
----------------------------------------------------------------
DaimlerChrysler AG has reported that April 2007 sales for U.S.-
based Chrysler Group outside North America were up 17 percent
over the same month last year and marked the best April in
10 years as sales in the Middle East, Northern Africa and
Russia nearly doubled those from April 2006.

The company experienced an unprecedented 23 consecutive months
of year-over-year sales gains and year-to-date sales increased
14 percent over the same period in 2006.  New vehicles fueled
the growth of Dodge and Jeep brand sales.

April 2007 was a strong start for the second quarter with
Chrysler Group sales outside North America up 17 percent over
the same month last year, and a 23rd consecutive month of year-
over-year sales growth.  The Company's sales outside North
America for the month reached 18,289 units and marked the best
April in 10 years.  Year-to-date, sales grew 14 percent over the
same period in 2006, and total sales through April were 70,859
units.

While the key European and South American markets continued to
do well, a key contributor to this month's growth were the sales
increases seen in newer, fast-growing markets.  In the Middle
East and Northern Africa region, sales jumped 97 percent (1,871
units) when compared to April 2006, and were up 62 percent year-
to-date (5,816 units).  Sales in Russia also grew at a
significant pace as April sales climbed 95 percent over the same
month last year, and year-to-date sales were up 93 percent.

"The expansion of the Dodge brand has been a catalyst for the
growth we've seen in both mature and emerging markets outside
North America," said Thomas Hausch, vice president, Chrysler
Group International Sales.  "In both Western and Eastern Europe,
as well as the Middle East, Dodge vehicles have been the top-
selling Chrysler Group products, telling us that there is
increasing demand around the world for this distinctly American-
styled brand.  But Dodge is only one part of the sales success
story.  We have also seen strong sales for new Chrysler and Jeep
vehicles that have been developed from the ground up for global
customers, and they are helping to boost sales and
profitability."

The fuel-efficient, yet powerful Dodge Caliber has been the
highest volume Chrysler Group vehicle outside North America in
2007, and the brand continued to lead new sales growth.  Some of
the historic favorites, like Jeep Grand Cherokee and Chrysler
300C, continued to rank among the Company's top-selling
products.  New vehicles, such as Jeep Compass and Chrysler
Sebring are making their way into dealerships in all of the key
markets and sales are picking up for those as well.

"The growth potential and importance of markets outside North
America have been identified as key factors in Chrysler Group's
Recovery and Transformation Plan," Mr. Hausch said.  "We will
continue to put energy behind strategic growth in these markets
and find ways to reach customers whose needs identify with the
vehicles that we have available.  We have also worked to ensure
that once a customer purchases a Chrysler Group vehicle, that
their experience with both the vehicle and the dealership
service is a positive one.  This will remain a priority as we
develop new vehicles, expand our operations and evaluate new
opportunities and potential business partners."

Chrysler Group sells and services vehicles in more than 125
countries around the world, and Chrysler Group sales outside
North America currently account for approximately 8 percent of
the Company's total global sales.  Vehicles available range
across all three Chrysler Group brands, with limited
availability on some trucks and SUV models.  The Company's
operations outside North America have been experiencing year-
over-year sales increases since 2004, and will continue to
increase the number of product offerings, powertrain options and
RHD availability through 2007.

Concurrently, Chrysler Group's April 2007 U.S. sales rose by
2 percent with the Jeep brand up 29 percent led by Jeep Wrangler
and Jeep Patriot; the Chrysler and Dodge minivans up 10 percent
with momentum from "National Minivan Month" in April; the five-
star crash test-rated Dodge Ram pick up rising 2 percent in
competitive segment; and the Chrysler Sebring sedan increasing
by 56 percent.

Inventory was down by 18 percent and more than 100,000 units.  
Chrysler Group reported sales for April 2007 of 193,104 units;
up 2 percent compared to April 2006 with 190,095.

"Chrysler Group increased sales in April based on a solid retail
performance -- despite two less selling days than in the
previous year and a challenging market environment," said Steven
Landry, executive vice president, NAFTA Sales, Global Marketing,
Service and Parts.  "Driven by the continuously strong Jeep
Wrangler and the new Jeep Patriot, sales for the Jeep brand were
up significantly by 29 percent."

With the continued pressure on gas prices Chrysler Group's
incentives in May will focus on the company's full line of cars
and small and compact SUVs with the launch of the 'Maximize Your
Miles' program.  The program will communicate the vehicle's fuel
economy message across all three Chrysler Group brands.  A key
part of it will be low-rate finance and additional bonus cash,
which will give customers a great package.

Chrysler Group finished the month with 482,786 units of
inventory, or a 60-day supply.  Inventory is down by 18 percent
compared to April 2006 when it was at 586,263 units.

Meanwhile, DaimlerChrysler Canada has disclosed that April 2007
marks the ninth consecutive month of sales growth following a
monthly increase in revenues since August 2006.  Monthly sales
were up 6.2 per cent while year-to-date sales rose 4.3 per cent.  
A total of 22,514 vehicles were sold in April, an increase of
6.2 per cent over April 2006.

                    About DaimlerChrysler

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

The company's worldwide operations are located in: Canada,
Mexico, United States, Argentina, Brazil, Venezuela, China,
India, Indonesia, Japan, Thailand, Vietnam, and Australia.

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

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

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


GLOBAL CROSSING: Impsat Merger Gets Regulator's Approval
--------------------------------------------------------
Venezuelan telecoms regulator Conatel has ratified the merger
between Global Crossing Ltd. and Impsat Fiber Networks,
according to a statement by Centro Nacional de Tecnologias de
Informacion, Venezuela's national information technology
institute.

Business News Americas relates that Conatel's authorization is
one part of a "multi-faceted merger across North and Latin
America" that Global Crossing and Impsat Fiber agreed in October
2006.

BNamericas notes that Impsat Fiber has operations in:

          -- Venezuela,
          -- Argentina,
          -- Colombia,
          -- Brazil,
          -- Ecuador,
          -- Chile,
          -- Peru and
          -- the US.

According to BNamericas, Impsat Fiber's business will add to
Global Crossing's integrated global network throughout 300
cities in 29 nations.

CNTI said in a statement that Conatel authorized the merger with
conditions.

Impsat Fiber must offer Internet connectivity to at least 100
public schools at 50% of the price that it charges for the
service.  Conatel gave the company 90 days to sign an accord
with the Venezuelan education ministry, starting at the merger's
approval, which was on April 24, BNamericas states.

                      About Impsat Fiber

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

                     About Global Crossing

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

At Dec. 31, 2006, Global Crossing Ltd.'s balance sheet showed a
US$195 million stockholders' deficit, compared to a US$173
million stockholders' deficit at Dec. 31, 2005.


IMPSAT FIBER: Global Crossing Merger Gets Regulator's Approval
--------------------------------------------------------------
Venezuelan telecoms regulator Conatel has ratified the merger
between Global Crossing Ltd. and Impsat Fiber Networks,
according to a statement by Centro Nacional de Tecnologias de
Informacion, Venezuela's national information technology
institute.

Business News Americas relates that Conatel's authorization is
one part of a "multi-faceted merger across North and Latin
America" that Global Crossing and Impsat Fiber agreed in October
2006.

BNamericas notes that Impsat Fiber has operations in:

          -- Venezuela,
          -- Argentina,
          -- Colombia,
          -- Brazil,
          -- Ecuador,
          -- Chile,
          -- Peru and
          -- the US.

According to BNamericas, Impsat Fiber's business will add to
Global Crossing's integrated global network throughout 300
cities in 29 nations.

CNTI said in a statement that Conatel authorized the merger with
conditions.

Impsat Fiber must offer Internet connectivity to at least 100
public schools at 50% of the price that it charges for the
service.  Conatel gave the company 90 days to sign an accord
with the Venezuelan education ministry, starting at the merger's
approval, which was on April 24, BNamericas states.

                     About Global Crossing

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

At Dec. 31, 2006, Global Crossing Ltd.'s balance sheet showed a
US$195 million stockholders' deficit, compared to a US$173
million stockholders' deficit at Dec. 31, 2005.

                      About Impsat Fiber

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

                     Going Concern Doubt

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


PETROLEOS DE VENEZUELA: Eni, PetroCanada & Opic Surrender Fields
----------------------------------------------------------------
Venezuela's state-owned oil firm Petroleos de Venezuela SA will
get operational control of the Venezuelan oilfields run by
Italy's Eni, Canada's PetroCanada and Venezuelan private firm
Opic, Business News Americas reports.

BNamericas relates that the private companies signed MOUs to
surrender the oilfields to Petroleos de Venezuela.

According to BNamericas, Eni owns a 30% interest in the Golfo de
Paria Este and 26% in Golfo de Paria Oeste projects, while Opic
holds 7.5% in Este and 6.5% in Oeste.  

Petroleos de Venezuela told BNamericas that Golfo Oeste will
begin crude production at 70,000 barrels per day ranging from
17-24 degrees API this year and has a license until 2022.  The
area could hold 430 million barrels of crude.

PetroCanada owns a 50% stake in La Ceiba, BNamericas says,
citing Petroleos de Venezuela.  Its partner, ExxonMobil, has
already signed an MOU with Petroleos de Venezuela for the
project.

Petroleos de Venezuela said in a statement that talks on the
creation of new joint ventures for the projects continue.

Petroleos de Venezuela by law will own at least 51% of the joint
ventures, under which firms get a sizable part of their revenue
in Bolivares, 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: President Chavez Wants to Avoid Seizing Sidor
----------------------------------------------------------
Venezuelan President Hugo Chavez, after threatening to
nationalize Siderurgica del Orinoco S.A., urged the steelmaker
to increase local sales of steel to avoid a government
intervention.

"I don't want to do it," President Chavez was quoted by
Bloomberg News as saying, referring to Sidor.  "All I want is to
create a new entrepreneurial culture where business executives
understand that they cannot do some things in Venezuela that
they do in other places."

The Venezuelan leader underscored that Sidor has refused to
supply domestic companies and gives preference to exports.

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.

                        *     *     *

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: Business Wit & Wisdom
------------------------------------
Author:     Richard S. Zera
Publisher:  Beard Books
Paperback:  316 pages
List Price: US$34.95

Order your personal copy at
http://www.amazon.com/exec/obidos/ASIN/1587982560/internetbankru
pt

This book Business Wit & Wisdom, written by Richard S. Zera
houses a masterful collection of sayings, anecdotes, and quotes
to amuse.

Thought provoking ideas and expressions can be found on every
page, along with stories and quips to prompt a smile or a hearty
chuckle.

Conveniently grouped by subject, this gold mine can be easily
panned by speakers for relevant nuggets, and readers can just
enjoy the thoughts and meanings prompted by so many of the
entries of this wonderful treasure chest.


                         ***********


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

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

Copyright 2007.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
prior written permission of the publishers.

Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.

The TCR Latin America subscription rate is US$625 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are US$25 each.  For
subscription information, contact Christopher Beard at
240/629-3300.


           * * * End of Transmission * * *