TCRLA_Public/070521.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

             Monday, May 21, 2007, Vol. 8, Issue 99

                          Headlines

A R G E N T I N A

ACXIOM CORP: Silver Lake Merger Cues Moody's to Put Ba2 Rating
ACXIOM CORP: Silver Lake Deal Cues S&P's Negative Watch
DANA CORP: To Terminate Non-Union Pension Benefits on July 1
DANA CORP: Wants To Buy Manufacturing Plants in Stockton, Calif.
DEPORTES OESTE: Proofs of Claims Verification Ends on July 16

ENCAY SA: Proofs of Claims Verification Is Until Sept. 3
NOBEL MEDICINA: Proofs of Claim Verification Ends on July 13
POTI POTI: Proofs of Claim Verification Deadline Is Aug. 8
TARJETA NARANJA: Fitch Affirms Int'l Local Currency IDRs at B
TRANSPORTES LA ANTARTIDA: Claims Verification Ends on July 11

VALL ROS: Trustee Verifies Proofs of Claim Until July 11
YACO ARDITTI: Trustee Verifies Claims Por Via Incidental
YPF SA: May Transfer Other LatAm Oil Assets to Argentine Unit
YPF SA: Repsol Will Receive Bids for 5% Stake of Firm This Week

B A H A M A S

SBARRO INC: Posts US$629,000 Net Loss in Quarter Ended April 1

B E R M U D A

ENERGY XXI: S&P Junks Rating on Planned US$700MM Note Offering
SCOTTISH RE: Clifford Wagner to Step Down as North America CEO
SCOTTISH RE: Moody's Affirms (P)Ba3 Rating After MassMutual Deal

B O L I V I A

INTERNATIONAL PAPER: UBS Maintains Buy Rating on Firm's Shares
PETROLEO BRASILEIRO: Will Finalize Sale of Bolivian Refineries

* BOLIVIA: May Work with Entel for Rural Telecom Services
* BOLIVIA: Will Hire Int'l Firm to Assess Gas Companies' Value

B R A Z I L

AMERICAN AXLE: Bags New Contract with Chery Automobile
BANCO NACIONAL: Acquires 31.4% Stake in Light
BANCO NACIONAL: S&P Lifts Rating to BB+ from BB
BANDEIRANTE ENERGIA: Moody's Lifts Corp. Family Rating at Ba2
BAUSCH & LOMB: Moody's Reviews Ratings Over Warburg Merger Deal

BIO-RAD LABORATORIES: DiaMed Purchase Cues S&P to Hold Ratings
DELPHI CORPORATION: UAW Delivers Counterproposal
ENERGIAS DO BRASIL: Moody's Puts Ba2 Corporate Family Rating
ESPIRITO SANTO CENTRAIS: Moody's Lifts Currency Rating to Ba2
PETROLEO BRASILEIRO: Unit Inks Supply Pact with Companhia Vale

REMY INTERNATIONAL: Moody's Cuts Junk PDR Over Interest Payments

C A Y M A N   I S L A N D S

ANOM LTD: Sets Final Shareholders Meeting for June 14
C60 EUROPEAN: Proofs of Claim Must be Filed by June 5
C60 EUROPEAN LONG: Proofs of Claim Filing Is Until June 5
HDH ADVISORS: Sets Final Shareholders Meeting for June 14
HGTI HOLDINGS: Proofs of Claim Filing Deadline Is June 14

JUPITER CAPITAL: Will Hold Final Shareholders Meeting on June 14
NEMO INTERNATIONAL: Proofs of Claim Filing Ends on June 5
OD CORP: Sets Final Shareholders Meeting for June 14
OPINIA (CAYMAN): Proofs of Claim Must be Filed by June 6
PACTUAL CORPORATE: Proofs of Claim Filing Ends on June 5

SBL SUNFLOWER: Will Hold Final Shareholders Meeting on June 14
STARTS FUNDING: Sets Final Shareholders Meeting for June 14
STRATA PLAN: Proofs of Claim Must be Filed by June 5
UNIVEST CONVERTIBLE: Proofs of Claim Filing Is Until June 6
UNIVEST DIVERSIFIED: Proofs of Claim Must be Filed by June 6

UNIVEST HIGH: Proofs of Claim Filing Is Until June 6

C H I L E

CINEMARK INC: Parent IPO Plan Cues S&P's Positive Watch

D O M I N I C A N   R E P U B L I C

FLOWSERVE CORP: Shareholders Approve Two Incentive Plans
JETBLUE AIRWAYS: Moody's Cuts Senior Unsecured Rating to Caa2

E C U A D O R

GEOKINETICS INC: Earns US$6.3 Mil. Net Income in 2007 First Qtr.
PETROECUADOR: Accepts Shell's Technical Offer for Esmeraldas

* ECUADOR: Gov't Creates Panel to Probe Debts' Legitimacy

E L   S A L V A D O R

ALCATEL-LUCENT: Inks Pact with Brasil Telecom to Upgrade Network

G U A T E M A L A

FLOWSERVE CORP: Paying 15 Cents Per Share Dividend on July 11

* GUATEMALA: Mario Gordillo Says Railroad Dev't Claim Baseless

H O N D U R A S

CHIQUITA BRANDS: Will Launch Banana Plantation in Honduras

J A M A I C A

DYOLL INSURANCE: Trustees May Fail to Resolve Issues on Payout
GOODYEAR TIRE: Sells Additional 3.4 Million Shares at US$33 Each

M E X I C O

BEARINGPOINT INC: Jill Kanin-Lovers Joins Board of Directors
BENCHMARK ELECTRONICS: Pemstar Buy Cues S&P to Remove Watch
CHURCH & DWIGHT: Earns US$45 Mln in First Quarter Ended March 31
DIGITAL LIGHTWAVE: Posts US$603,000 Net Loss in First Quarter
DURA AUTO: Wants Exclusive Plan-Filing Period Until Sept. 30

ENERSYS: S&P Holds All Ratings & Revises Outlook to Stable
EPICOR SOFTWARE: S&P Holds BB- Rating on US$100 Mil. Senior Loan
FRESENIUS AG: Moody's Affirms Ba2 Corporate Family Rating
GENERAL MOTORS: To Invest US$63 Mil. in Saginaw Metal Casting
GENERAL MOTORS: Exporting US$700 Mln in Auto Components to China

HIPOTECARIA CREDITO: Aims To Increase Loan Portfolio to MXN27B
SANLUIS CORP: Fitch Affirms CCC+ Rating on USUS$75-Million Notes

P A N A M A

CHIQUITA BRANDS: Asks Court To Stay Banana Price Fixing Lawsuit

P E R U

DEL MONTE: Asks Court To Stay Banana Price Fixing Lawsuit

P U E R T O   R I C O

DORAL FINANCIAL: Signs US$610 Million Stock Purchase Agreement
DORAL FINANCIAL: Fitch Cuts Ratings; Keeps Watch Negative
DORAL FINANCIAL: Moody's May Downgrade B2 Rating After Review
MICRON TECHNOLOGY: S&P Holds BB- Rating on US$1.1 Billion Notes

V E N E Z U E L A

ARVINMERITOR INC: Completes Emissions Biz Sale to One Equity
LEAR CORP: Fitch Cuts & Withdraws Low B & Junk Ratings
PETROLEOS DE VENEZUELA: Allocates US$27.3B in Public Projects
PETROLEOS DE VENEZUELA: Inks Software Dev't Deals with Beicip

* VENEZUELA: Oil Export Revenues Plummet 10%, Central Bank Says


                         - - - - -


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


ACXIOM CORP: Silver Lake Merger Cues Moody's to Put Ba2 Rating
--------------------------------------------------------------
Moody's Investors Service placed Acxiom Corporation's Ba2
corporate family and secured credit facility ratings on review
for possible downgrade, prompted by the company's May 16, 2007,
announcement that it has entered into a definitive agreement to
be acquired by Silver Lake and ValueAct Capital in an all-cash
transaction valued at US$3.0 billion, including the assumption
of approximately US$756 million of debt.

"Moody's expects that conclusion of the review has a high
probability to result in a multi-notch ratings downgrade, given
the proposed transaction's size and likely use of debt to
finance the acquisition" commented John Moore, Vice
President/Senior Analyst at Moody's Investors Service.  The
offer, at US$27.10 in cash per share, represents an approximate
20% premium over Acxiom's average closing price during the 30
trading days ended May 16, 2007.

The merger agreement provides that Acxiom may solicit and
entertain proposals from other companies during the next 60
days. The transaction is expected to close by Sept. 30, 2007.

Ratings placed on review for possible downgrade:

   -- Senior secured Term Loan due September 2012 rated Ba2

   -- Senior secured revolving credit facility expiring
      September 2011 rated Ba2

   -- Ba2 Corporate Family Rating

Headquartered in Little Rock, Arkansas, Acxiom Corporation
(Nasdaq: ACXM) -- http://www.acxiom.com/-- integrates data,  
services and technology to create and deliver customer and
information management solutions for many of the largest, most
respected companies in the world.  The core components of
Acxiom's solutions are Customer Data Integration technology,
data, database services, IT outsourcing, consulting and
analytics, and privacy leadership.

Founded in 1969, Acxiom has locations throughout the United
States, in Europe particularly in France and Germany, and in
Australia and China in the Asia-Pacific region.  Acxiom has a
team of specialists with sales and business development
associates based in the largest Latin American markets: Brazil,
Argentina and Mexico.


ACXIOM CORP: Silver Lake Deal Cues S&P's Negative Watch
-------------------------------------------------------
Standard & Poor's Ratings Services placed its 'BB' corporate
credit rating on Little Rock Arkansas-based Acxiom Corp. on
CreditWatch with negative implications.
      
"The CreditWatch placement follows the announcement that Acxiom
has entered into a definitive agreement to be acquired by Silver
Lake and ValueAct Capital, in an all-cash transaction valued at
US$3.0 billion, including approximately US$756 million of
outstanding debt," said Standard & Poor's credit analyst Philip
Schrank.  The merger agreement provides that Acxiom may solicit
and entertain proposals from other companies during the next 60
days.
     
The ratings on Acxiom's existing senior secured bank facility
were not placed on CreditWatch, as the term loans and any
amounts outstanding under the revolving credit facility are
expected to be refinanced as part of the transaction.  S&P will
review the financial terms of the acquisition and their
assessment of management's business strategy in order to resolve
the CreditWatch listing.

Acxiom Corporation -- http://www.acxiom.com/-- (Nasdaq: ACXM)  
integrates data, services and technology to create and deliver
customer and information management solutions for many of the
largest, most respected companies in the world.  The core
components of Acxiom's innovative solutions are Customer Data
Integration technology, data products, database services, IT
outsourcing, consulting and analytics, and privacy leadership.
Founded in 1969, Acxiom is headquartered in Little Rock,
Arkansas.  The company also has locations in Europe (UK, France,
Germany, Spain, among others), Australia, China and Canada.  The
company also has a presence in Latin America and has strategic
alliances with certain companies in Argentina, Brazil and
Mexico.


DANA CORP: To Terminate Non-Union Pension Benefits on July 1
------------------------------------------------------------
Dana Corp. and its debtor-affiliates and the Official Committee
of Non-Union Retirees wish to avoid the expense and uncertainty
associated with litigating their disputes under Section
1113/1114 of the Bankruptcy Code.

Accordingly, the Debtors and the Retiree Committee agree to deem
resolved the Section 1113/1114 disputes, the Debtors' request to
terminate non-union pension benefits and the objections as to
all former employees who:

   -- while working for the Debtors were not represented or are
      not currently represented by a labor organization; and

   -- were receiving or eligible to receive Non-Pension Retiree
      Benefits from the Debtors as of March 31, 2007.

Any non-union employee that retired after March 31, 2007, is not
subject to the terms of the Stipulation but is subject to the
terms of the order authorizing the termination of the non-union
pension benefits entered on March 30, 2007.

Judge Lifland had authorized the Debtors to terminate, effective
as of April 1, 2007, all their non-pension retiree benefits for
non-union active employees that have not retired on or before
March 30, 2007.

The Debtors will terminate the non-union pension benefits
effective as of July 1, 2007, in consideration for the payment
of US$78,800,000 to fund a Voluntary Employees' Benefit
Association trust for the Non-Union Retirees.

The Debtors' obligation to contribute to the VEBA Trust will
have the status of an allowed administrative expense.

The Non-Union Retiree VEBA will bear all costs, fees and
expenses incurred for the creation of the Trust except with
respect to reasonable professional fees and expenses of Stahl
Cowen Crowley, LLC, the Retiree Committee's bankruptcy counsel,
and The Segal Company, the Retiree Committee's actuarial and
benefits claim.

The parties clarify that the Stipulation is not intended to
mandate or provide for the type, nature or duration of benefits
or payments that may be offered or provided by the Non-Union
Retiree VEBA.  All decisions with respect to the benefits will
be made within the sole discretion the trustees of the Non-Union
Retiree VEBA.

The parties mutually release all claims, lawsuits or causes of
actions they have against each other.

The parties further agree that the Debtors will provide the
Retiree Committee, at no cost, access to their counsel, their
actuary, and their human resources department for the formation
of the VEBA Trust.

The Debtors will provide information on life insurance
conversion options and will reasonably assist the non-union
retirees in the conversion of their life insurance policies;
provided that the Debtors will not be required to take any
actions that will result in the Debtors incurring out-of-pocket
expenses in respect of the assistance.

The Debtors will comply with Section 4980B of the Internal
Revenue Code of 1986 and the Employee Retirement Income Security
Act of 1974 with regard to making available to the non-union
retirees Consolidated Omnibus Budget Reconciliation Act
continuation coverage.

The Debtors will offer eligible non-union retirees an
opportunity to elect COBRA continuation coverage; the agreement,
however, will not apply if:

   (a) it is otherwise not required by, inconsistent with or
       contrary to applicable law;

   (b) the Debtors cease to provide any group health plan to
       their employees;

   (c) a non-union retiree fails to pay a COBRA premium; or

   (d) a non-union retiree becomes covered under any other group
       health plan.

As of May 7, 2007, there are approximately 7,300 non-union
retirees.  If it is later determined that the number of non-
union retirees increase by at least 100 individuals, then the
Debtors and the Retiree Committee, in consultation with the
Official Committee of Unsecured Creditors, will engage in good
faith negotiations to work out a fair and equitable compromise.

The Retiree Committee will elect or appoint a trustee or
trustees of the Non-Union Retiree VEBA.  The Debtors will have
no obligations regarding the establishment or administration of
the Non-Union Retiree VEBA.

The Retiree Committee agrees to support any Chapter 11 plan of
reorganization the Debtors may file, provided that that plan is
consistent with the terms of the Stipulation.

Claim Nos. 11384, 11388 though 11424, 11482 and 12912 filed by
the Retiree Committee will be deemed withdrawn.

                       About Dana Corp.

Toledo, Ohio-based Dana Corp. -- http://www.dana.com/-- designs  
and manufactures products for every major vehicle producer in
the world, and supplies drivetrain, chassis, structural, and
engine technologies to those companies.  Dana employs 46,000
people in 28 countries.  Dana is focused on being an essential
partner to automotive, commercial, and off-highway vehicle
customers, which collectively produce more than 60 million
vehicles annually.  Dana has facilities in China in the Asia-
Pacific, Argentina in the Latin-American regions and Italy in
Europe.

The company and its affiliates filed for chapter 11 protection
on Mar. 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354).  As of
Sept. 30, 2005, the Debtors listed US$7,900,000,000 in total
assets and US$6,800,000,000 in total debts.

Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day,
in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq.,
Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in
Cleveland, Ohio, represent the Debtors.  Henry S. Miller at
Miller Buckfire & Co., LLC, serves as the Debtors' financial
advisor and investment banker.  Ted Stenger from AlixPartners
serves as Dana's Chief Restructuring Officer.  

Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel
LLP, represents the Official Committee of Unsecured Creditors.  
Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel
to the Official Committee of Equity Security Holders.  Stahl
Cowen Crowley, LLC serves as counsel to the Official Committee
of Non-Union Retirees.  

The Debtors' exclusive period to file a plan expires on
Jan. 3, 2007.  They have until Mar. 5, 2007, to solicit
acceptances to that plan.  

(Dana Corporation Bankruptcy News, Issue No. 27; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or  
215/945-7000).

Dominion Bond Rating Service downgraded Dana Corporation's Bank
Debt rating to D from CCC, and cut the Senior Unsecured Notes
rating to D from CC.  DBRS's rating action follows the company's
decision to file for Chapter 11 bankruptcy protection.  The
filing covers Dana and 40 U.S. subsidiaries of the company, and
excludes Dana's European, South American, Asia-Pacific,
Canadian, and Mexican subsidiaries.

Following Dana Corporation's announcement that it has filed for  
Chapter 11 bankruptcy court protection and defaulted on its debt  
agreements, Fitch downgraded Dana's issuer default rating to 'D'  
from 'C'.  

Fitch also affirms and removes from Rating Watch Negative the
'CC' rating and 'RR4' recovery rating on Dana's unsecured
notes.  These ratings will be withdrawn in 30 days.  The 'B-'
rating on the pre-petition senior secured facility and the
recovery rating of 'RR1' are being withdrawn, as the facility is
expected to achieve full recovery through the establishment of
US$1.45 billion in debtor-in-possession facilities.

Moody's Investors Service assigned B3 ratings to the US$1.45
billion debtor-in-possession financing of Dana Corporation as a
Debtor-in-Possession.  The DIP financing consists of a US$750
million super priority senior secured asset based revolving
credit and a US$700 million super priority senior secured term
loan B.


DANA CORP: Wants To Buy Manufacturing Plants in Stockton, Calif.
----------------------------------------------------------------
Dana Corp. and its debtor-affiliates seek the U.S. Bankruptcy
Court for the Southern District of New York's authority to
purchase manufacturing plants located in Stockton, California,
and Danville, Kentucky, from their wholly owned non-debtor
subsidiary, Dana Commercial Credit Corporation.

Pursuant to separate purchase agreements, the Debtors will pay
US$1,327,210 for the Stockton Plant and US$6,108,365 for the
Danville Plant.

Moreover, the Purchase Agreements provides that DCCC will pay
one half of the expenses associated with title insurance for the
Plants and one half of an escrow agent's fees.  The Debtors will
pay the other half of the title insurance expenses and the
escrow agent fees.  DCCC will pay all transfer taxes associated
with the sale of the Plants and the Debtors will pay all the
recording fees associated with the transfer of the Plant's
ownership.

In connection with the purchase of the Plants, the real and
property leases associated with the Plants will be terminated
and no further claims will be due and owing under the Leases.

DCCC is in the process of winding down its business, Richard H.
Engman, Esq., at Jones Day, in New York, tells the Court.  In
connection with the winddown, the Debtors and DCCC agreed that
the Debtors would pay all rental payments due to DCCC under the
Leases associated with the Plants.

The Debtors currently pay DCCC US$45,013 per month in rent for
the Danville Plant and US$103,550 a month in rent for the
Stockton Plant, Mr. Engman says.

Mr. Engman asserts that pursuant to accounting rules, the
Debtors will show increased income once they purchase the Plants
resulting from the elimination of rental expense.  Purchasing
the Plants now, Mr. Engman notes, will accelerate the Debtors'
realization of the accounting benefits and make the Plants
available as collateral for any exit financing in the bankruptcy
cases.

The Debtors believe that the purchase price for the Plants is in
the range of likely market values for the Plants.

The Debtors also seek the Court's permission to waive any stay
of the effectiveness of the order approving the repurchase
request.  Mr. Engman says the Debtors would like to commence
closing the transactions as soon as possible to obtain the
accounting benefits contemplated under the transaction.

The Debtors would also like to avoid having to make lease
payments on June 1, 2007, which would ordinarily come due during
the automatic stay of effectiveness of the sought order,
Mr. Engman adds.

                       About Dana Corp.

Toledo, Ohio-based Dana Corp. -- http://www.dana.com/-- designs  
and manufactures products for every major vehicle producer in
the world, and supplies drivetrain, chassis, structural, and
engine technologies to those companies.  Dana employs 46,000
people in 28 countries.  Dana is focused on being an essential
partner to automotive, commercial, and off-highway vehicle
customers, which collectively produce more than 60 million
vehicles annually.  Dana has facilities in China in the Asia-
Pacific, Argentina in the Latin-American regions and Italy in
Europe.

The company and its affiliates filed for chapter 11 protection
on Mar. 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354).  As of
Sept. 30, 2005, the Debtors listed US$7,900,000,000 in total
assets and US$6,800,000,000 in total debts.

Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day,
in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq.,
Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in
Cleveland, Ohio, represent the Debtors.  Henry S. Miller at
Miller Buckfire & Co., LLC, serves as the Debtors' financial
advisor and investment banker.  Ted Stenger from AlixPartners
serves as Dana's Chief Restructuring Officer.  

Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel
LLP, represents the Official Committee of Unsecured Creditors.  
Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel
to the Official Committee of Equity Security Holders.  Stahl
Cowen Crowley, LLC serves as counsel to the Official Committee
of Non-Union Retirees.  

The Debtors' exclusive period to file a plan expires on
Jan. 3, 2007.  They have until Mar. 5, 2007, to solicit
acceptances to that plan.  

(Dana Corporation Bankruptcy News, Issue No. 27; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or  
215/945-7000).

Dominion Bond Rating Service downgraded Dana Corporation's Bank
Debt rating to D from CCC, and cut the Senior Unsecured Notes
rating to D from CC.  DBRS's rating action follows the company's
decision to file for Chapter 11 bankruptcy protection.  The
filing covers Dana and 40 U.S. subsidiaries of the company, and
excludes Dana's European, South American, Asia-Pacific,
Canadian, and Mexican subsidiaries.

Following Dana Corporation's announcement that it has filed for  
Chapter 11 bankruptcy court protection and defaulted on its debt  
agreements, Fitch downgraded Dana's issuer default rating to 'D'  
from 'C'.  

Fitch also affirms and removes from Rating Watch Negative the
'CC' rating and 'RR4' recovery rating on Dana's unsecured
notes.  These ratings will be withdrawn in 30 days.  The 'B-'
rating on the pre-petition senior secured facility and the
recovery rating of 'RR1' are being withdrawn, as the facility is
expected to achieve full recovery through the establishment of
US$1.45 billion in debtor-in-possession facilities.

Moody's Investors Service assigned B3 ratings to the US$1.45
billion debtor-in-possession financing of Dana Corporation as a
Debtor-in-Possession.  The DIP financing consists of a US$750
million super priority senior secured asset based revolving
credit and a US$700 million super priority senior secured term
loan B.


DEPORTES OESTE: Proofs of Claims Verification Ends on July 16
-------------------------------------------------------------
Andrea M. Sita, the court-appointed trustee for Deportes Oeste
SA's bankruptcy proceeding, verifies creditors' proofs of claim
until July 16, 2007.

Ms. Sita will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 1 in Buenos Aires, with the assistance of Clerk
No. 2, 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 Deportes Oeste 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 Deportes Oeste's
accounting and banking records will be submitted in court.

La Nacion did not state the reports submission dates.

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

The debtor can be reached at:

          Deportes Oeste SA
          Rivadavia 11136
          Buenos Aires, Argentina

The trustee can be reached at:

          Andrea M. Sita
          Cramer 2175
          Buenos Aires, Argentina


ENCAY SA: Proofs of Claims Verification Is Until Sept. 3
--------------------------------------------------------
Horacio Camiri, the court-appointed trustee for Encay SA's
bankruptcy proceeding, verifies creditors' proofs of claim until
Sept. 3, 2007.

Mr. Camiri will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 19 in Buenos Aires, with the assistance of Clerk
No. 37, 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 Encay 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 Encay's accounting
and banking records will be submitted in court.

La Nacion did not state the reports submission dates.

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

The debtor can be reached at:

          Encay SA
          T. Gordillo 4545
          Buenos Aires, Argentina

The trustee can be reached at:

          Horacio Camiri
          Lavalle 1206
          Buenos Aires, Argentina


NOBEL MEDICINA: Proofs of Claim Verification Ends on July 13
------------------------------------------------------------
Rodolfo Fernando Daniel Torella, the court-appointed trustee for
Nobel Medicina Privada S.A.'s bankruptcy proceeding, verifies
creditors' proofs of claim until July 13, 2007.

Mr. Torella will present the validated claims in court as
individual reports on Sept. 10, 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 Nobel Medicina 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 Nobel Medicina's
accounting and banking records will be submitted in court on
Oct. 23, 2007.

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

The trustee can be reached at:

          Rodolfo Fernando Daniel Torella
          Arcos 3726
          Buenos Aires, Argentina


POTI POTI: Proofs of Claim Verification Deadline Is Aug. 8
----------------------------------------------------------
Jose Luis Ciccociopo, the court-appointed trustee for Poti Poti
S.R.L.'s bankruptcy proceeding, verifies creditors' proofs of
claim until Aug. 8, 2007.

Mr. Ciccociopo 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 Poti Poti
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 Poti Poti's
accounting and banking records will be submitted in court.

Infobae did not state the reports submission dates.

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

The trustee can be reached at:

          Jose Luis Ciccociopo
          Vidal 3375
          Buenos Aires, Argentina


TARJETA NARANJA: Fitch Affirms Int'l Local Currency IDRs at B
-------------------------------------------------------------
Fitch Ratings has affirmed Argentina's Tarjeta Naranja S.A. as:

      -- International long-term local currency Issuer Default       
         Rating at 'B';

      -- International short-term local currency IDR at 'B';

      -- National long-term Rating at 'AA-(arg)'.

The Rating Outlook is Stable.

TN's ratings reflect its sound historic profitability, liquidity
and asset quality, as well as its satisfactory capital base.
Also, they take into account the improving operating
environment, which has allowed the strong growth of the company.

TN's profitability remains sound, in spite of a legal limit on
fees and interest rates imposed on credit card issuers in 2005,
and is based on strong revenue generation, adequate cost
efficiency and a healthy asset quality.  Fitch Ratings expects
TN's profitability to remain sound based on its good revenue
generation and growth.

TN's lending has grown significantly in recent years. In 2006,
total loans, net of loan loss reserves and ARP220 millions of
securitized loans, grew by 30%.  Its asset quality ratios have
historically been very good based on conservative credit limits
and good scoring systems.  At the end of 2006, its non-
performing loans ratio was a low 3.5% with loan loss reserve
coverage of over 98%.  Fitch expects TN's asset quality ratios
to remain healthy, although there could be some deterioration
due to loan securitizations, the seasoning of the portfolio, and
because NPLs are at a historic low.  In addition, TN has no
exposure to the public sector.

TN's liquidity is strong, supported by the short-term nature of
its lending.  In addition, it is extending the maturity of its
funding by issuing debt and securitizing loans.  Exposure to
foreign currency risk is low as most of its debt is in Argentine
pesos.

At the end of 2006, TN's capital base was ample with an
equity/assets ratio of 19.3%.  In spite of the significant
growth of its assets, the company's strong internal capital
generation allowed it to return to its shareholders in 2005 the
ARP25m capital injection done in 2004 and to pay out around 24%
of 2006 net income, maintaining satisfactory capital levels.

TN was created in 1985 in the Province of Cordoba and since 1996
it has expanded geographically through the merger with Tarjetas
del Sur and Tarjeta Comfiar, and it currently operates in most
of the country.  At the end of 2006, TN had 45% of the credit
card market in Cordoba and was the third largest card issuer
nationally.  TN is 80% owned by Banco de Galicia y Buenos Aires,
third largest private sector bank in Argentina by deposits.

Fitch's National Ratings provide a relative measure of
creditworthiness for rated entities in countries where the
sovereign's foreign and local currency ratings are below 'AAA'.
National ratings are not internationally comparable since the
best relative risk within a country is rated 'AAA' and other
credits are rated only relative to this risk.  They are
signified by the addition of an identifier, for the country
concerned, such as 'AAA (arg)' for national ratings in
Argentina.


TRANSPORTES LA ANTARTIDA: Claims Verification Ends on July 11
-------------------------------------------------------------
Pedro Julian Tubia, the court-appointed trustee for Transportes
La Antartida S.R.L.'s bankruptcy proceeding, verifies creditors'
proofs of claim until July 11, 2007.

Mr. Tubia will present the validated claims in court as
individual reports on Sept. 7, 2007.  The National Commercial
Court of First Instance in San Nicolas, 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 Transportes La Antartida 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 Transportes La
Antartida's accounting and banking records will be submitted in
court on Oct. 19, 2007.

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

The debtor can be reached at:

          Transportes La Antartida S.R.L.
          Romulo Naon y Oliveira Cesar, San Pedro
          Buenos Aires, Argentina

The trustee can be reached at:

          Pedro Julian Tubia
          Juan B. Justo 142, San Nicolas
          Buenos Aires, Argentina


VALL ROS: Trustee Verifies Proofs of Claim Until July 11
--------------------------------------------------------
Juan Angel Giannazzo, the court-appointed trustee for Vall Ros
Internacional S.A.'s reorganization proceeding, verifies
creditors' proofs of claim until July 11, 2007.

The National Commercial Court of First Instance in Buenos Aires
approved a petition for reorganization filed by Vall Ros,
according to a report from Argentine daily Infobae.

Mr. Giannazzo will present the validated claims in court as
individual reports on Sept. 6, 2007.  The court will determine
if the verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Vall Ros 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 Vall Ros' accounting
and banking records will be submitted in court.

Infobae did not state the general report submission date.

The informative assembly will be held on April 29, 2008.
Creditors will vote to ratify the completed settlement plan
during the assembly.

The trustee can be reached at:

          Juan Angel Giannazzo
          Jufre 21
          Buenos Aires, Argentina


YACO ARDITTI: Trustee Verifies Claims Por Via Incidental
--------------------------------------------------------
Estudio Contable de los C.P.N. Jorge Alberto Epstein y Ciro F.
Ambrosio Todaro, the court-appointed trustee for Yaco Arditti y
Cia. S.R.L.'s bankruptcy proceeding, verifies creditors' proofs
of claim "por via incidental."

Estudio Contable will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance in Chaco 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 Yaco Arditti
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 Yaco Arditti's
accounting and banking records will be submitted in court.

Infobae did not state the reports submission dates.

Estudio Contable is also in charge of administering Yaco
Arditti's assets under court supervision and will take part in
their disposal to the extent established by law.

The debtor can be reached at:

          Yaco Arditti y Cia. S.R.L.
          Arturo Frondizi 234, Resistencia
          Chaco, Argentina

The trustee can be reached at:

          Estudio Contable de los C.P.N. Jorge Alberto Epstein y  
          Ciro F. Ambrosio Todaro
          Roque Saenz Pena 277, Resistencia
          Chaco, Argentina


YPF SA: May Transfer Other LatAm Oil Assets to Argentine Unit
-------------------------------------------------------------
Repsol told Thomson Financial that it would transfer its Latin
American oil assets -- including those in Trinidad and
Venezuela, and excluding liquefied natural gas operations -- to
its Argentine unit YPF SA.

Repsol corporate development director Miguel Martinez said in a
conference with analysts that YPF would become the head of all
of Repsol's investments in Latin America, excluding the
liquefied natural gas business.

The new structure would likely meet regulatory and political
hurdles, as the idea "faces some fiscal issues," Mr. Martinez
told Thomson Financial.

                        About Repsol

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

                         About YPF SA

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

                        *     *     *

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

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

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

          -- Ba2 foreign currency senior unsecured rating;

Moody's said the outlook is negative.


YPF SA: Repsol Will Receive Bids for 5% Stake of Firm This Week
---------------------------------------------------------------
A report in news Web site Negocio says that Repsol will receive
an offer for a 5% stake in its Argentine subsidiary YPF SA this
week from a group of four Argentine oil firms.

As reported in the Troubled Company Reporter-Latin America on
May 11, 2007, Repsol is in talks with potential takers for
stakes in YPF.  Repsol had intended to float between 15% to 20%
of YPF on the local market but ultimately decided against it,
saying market conditions did not warrant it.  Repsol's decision
to sell shares is aimed at reducing its exposure in Argentina,
where production is falling, and focus more in finding oil and
gas in Africa and the Middle East.

A Repsol spokesperson told Thomson Financial, "As our chairman
(Antoni Brufau) said last week, we are in talks with various
groups of possible local investors for YPF... but obviously we
cannot disclose any details of these negotiations or give a time
frame."  

Mr. Brufau said in a press conference that the incorporation of
local private business partners in Repsol's 99.5%-owned YPF
would be a "win-win situation, ahead of a future listing."

"It would be very beneficial to have a private Argentine partner
because in my experience having local partners is a good thing,"
Mr. Brufau commented to Thomson Financial.

However, Repsol will always aim to keep control of YPF, Thomson
Financial states, citing Mr. Brufau.

                        About Repsol

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

                         About YPF SA

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

                        *     *     *

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

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

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

          -- Ba2 foreign currency senior unsecured rating;

Moody's said the outlook is negative.




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


SBARRO INC: Posts US$629,000 Net Loss in Quarter Ended April 1
--------------------------------------------------------------
Sbarro, Inc., released its results of operations for the three
months ended April 1, 2007.  The company incurred a US$629,000
net loss for the first quarter of 2007.

               First Quarter Financial Results

The company has reported operating results and financial
position for all periods presented as of and prior to
Jan. 30, 2007, as those of the Predecessor Company and for all
periods from and after Jan. 31, 2007, as those of the Successor
Company.  The company's operating results for the first quarter
ended April 1, 2007, are presented as the combined Predecessor
and Successor results since Jan. 1, 2007.  This approach is not
consistent with U.S. generally accepted accounting principles,
however, the company's management believes that it is a
meaningful way to present the results of operations for the
first quarter ended April 1, 2007.

Combined revenues were US$81.4 million for the quarter ended
April 1, 2007, as compared to US$100.2 million for the quarter
ended April 23, 2006.  The first combined quarter of 2007 had
thirteen weeks as compared to the first quarter of 2006 of
sixteen weeks.  The three additional weeks in 2006 produced
sales of approximately US$19.0 million.  Revenues related to our
real estate operations which were transferred to the selling
shareholders was US$.3 million for 2007 and US$.9 million for
2006.  The company's revenues increased modestly driven by same-
store sales growth of 2.7% in its company-owned stores, 3.4% in
its domestic franchise stores and 7.0% in its international
franchise stores offset by fewer company-owned stores in 2007
versus 2006.

Combined EBITDA, for the first quarter of 2007, as calculated in
accordance with the terms of the bank credit agreement, was
US$9.9 million for the first quarter ended April 1, 2007, as
compared to US$12.7 million for the first quarter ended
April 23, 2006.  The three additional weeks in 2006 produced
EBITDA of approximately US$3 million.  The company's EBITDA
improvement for the comparable thirteen-week period resulted
from higher sales offset by higher cheese prices and a
settlement with a franchise which increased EBITDA by
approximately US$.5 million in 2006.

Peter Beaudrault, Chairman of the Board of Sbarro commented, "We
are pleased with the continuing improvements in same store sales
and the growth in EBITDA during the first quarter.  This growth
was achieved in a quarter, which had a great deal of activity
including the closing of our MidOcean transaction and the
completion of the sale of our Term Notes and Senior Notes.  
While managing these transactions, our team was able to remain
focused on growth."

           MidOcean Partners' Acquisition of Sbarro

On Jan. 31, 2007, MidOcean SBR Acquisition Corp., an indirect
subsidiary of MidOcean SBR Holdings, LLC, an affiliate of
MidOcean Partners III, L.P., and certain of its affiliates
merged with and into the company in exchange for consideration
of US$450 million in cash, subject to certain adjustments.  Upon
consummation of the Merger, all of the outstanding common stock
of the company became owned by Sbarro Holdings LLC, a subsidiary
of Holdings.

In addition, the former shareholders received a distribution of
the cash on hand in excess of (i) US$11 million, plus (ii) all
amounts required to be paid in connection with the special event
bonuses.

In connection with the Merger, the company transferred interests
in certain non-core assets to a newly formed company owned by
certain of its former shareholders.  There was no additional
consideration given for the transfer of these assets as they
were treated as a dividend.  The assets and related costs that
the company transferred were:

   -- the interests in 401 Broadhollow Realty Corp. and 401
      Broadhollow Fitness Center Corp., which own the company's
      corporate headquarters, the fitness center and the assets
      of the Sbarro Cafe located at the corporate headquarters;

   -- a parcel of undeveloped real property located in East
      Northport, New York;

   -- the interests in Boulder Creek Ventures LLC and Boulder
      Creek Holdings, LLC, which own a 40% interest in a joint
      venture that operates 15 steakhouses under "Boulder Creek"
      and other names; and

   -- the interest in Two Mex-SS, LLC, which owns a 50% interest
      in a joint venture that operates two tex-mex restaurants
      under the "Baja Grill" name.

                        About Sbarro

Headquartered in Melville, New York, Sbarro Inc. is a quick
service restaurant chain that serves Italian specialty foods.  
As of Oct. 8, 2006, the company owned and operated 479 and
franchised 476 restaurants worldwide under brand names such
as "Sbarro," "Umberto's," and "Carmela's Pizzeria."  The company
also operated 25 other restaurant concepts and joint ventures
under various brand names.  Total revenues for fiscal 2005 were
approximately USUS$348 million.  The company announced on
June 19, 2006, its international expansion by opening more than
25 restaurants in Guatemala, El Salvador, Honduras, The Bahamas
and Romania.

                        *     *     *

As reported in the Troubled Company Reporter on Jan. 29, 2007,
Standard & Poor's Ratings Services affirmed its bank loan and
recovery ratings on Sbarro Inc.'s bank facility, after the
report that the company will increase the size of the loan to
USUS$208 million from USUS$175 million.

These ratings were affirmed:

      -- Corporate credit rating affirmed B-;
      -- USUS$25 million revolver due 2013 affirmed at B; and
      -- USUS$183 million term loan due 2014 affirmed B.




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


ENERGY XXI: S&P Junks Rating on Planned US$700MM Note Offering
--------------------------------------------------------------
Standard & Poor's Rating Services assigned its 'CCC+' corporate
credit rating to oil and gas exploration and production company
Energy XXI Limited.  At the same time, Standard & Poor's
assigned its 'CCC' senior unsecured rating to subsidiary Energy
XXI Gulf Coast Inc.'s proposed US$700 million note offering.  
The outlook is stable.
     
Pro forma the proposed US$700 million note offering, Hamilton,
Bermuda-based Energy XXI will have approximately US$1 billion
debt outstanding as of June 30, 2007.
      
"The ratings on Energy XXI reflect its very limited operating
history, high debt leverage, elevated cost structure, aggressive
growth strategy, and small reserve base concentrated in the
capital-intensive Gulf of Mexico region," said Standard & Poor's
credit analyst Paul Harvey.  "Mitigating factors include an
experienced management team, a substantial hedging program to
protect cash flows, and improving operating results."
     
The stable outlook assumes liquidity remains adequate while
Energy XXI successfully integrates the Pogo acquisition.  If
debt leverage increases beyond current levels and/or if
liquidity were to weaken significantly, ratings would face
considerable negative pressure.  On the other hand, ratings
could be raised over the medium term if Energy XXI can achieve a
track record of successfully integrating its acquisitions while
organically increasing production and reserves and materially
reducing debt leverage.

Energy XXI Gulf Coast, Inc. is an independent exploration and
production company based in Houston, Texas and is an indirect
wholly owned subsidiary of Energy XXI (Bermuda) Limited.

Energy XXI (Bermuda) (LSE:EGY) is an independent oil and natural
gas exploration and production company whose growth strategy
emphasizes acquisitions, enhanced by its value-added organic
drilling program.  The company's properties are primarily
located in the U.S. Gulf of Mexico waters and the Gulf Coast
onshore.  Energy XXI is listed on the NASDAQ system under the
symbol 'EXXI.'


SCOTTISH RE: Clifford Wagner to Step Down as North America CEO
--------------------------------------------------------------
Scottish Re Group Limited disclosed that Clifford J. Wagner will
resign as Chief Executive Officer of the North American segment
later this year.  A search for a new Chief Executive Officer for
the North America segment has been initiated and is expected to
be concluded by the end of September 2007.

"Cliff has been with Scottish Re since 2000 and was one of the
early pioneers of our company," said Paul Goldean, Chief
Executive Officer of Scottish Re Group Limited.  "We are
grateful for his service and his many contributions made to the
company over the past seven years.  His willingness to ensure a
smooth transition to a new executive for North America is
further testament to his commitment to the company and his
unquestioned professionalism."

Cliff Wagner noted, "It has been a pleasure working at Scottish
Re and I am confident my talented colleagues with the support of
our new board and majority shareholders will soon return the
company to its former position as a leader in the global
reinsurance industry."

Mr. Wagner has served as President and Chief Executive Officer,
Scottish Holdings, Inc. since August 2006.  Mr. Wagner joined
Scottish Re in 2000 and served as Executive Vice President and
Chief Actuary.

Scottish Re Group Ltd. -- http://www.scottishre.com/-- is a  
global life reinsurance specialist.  Scottish Re has operating
businesses in Bermuda, Grand Cayman, Guernsey, Ireland, the
United Kingdom, United States, and Singapore.  Its flagship
operating subsidiaries include Scottish Annuity & Life Insurance
Company (Cayman) Ltd. and Scottish Re (US), Inc.  Scottish Re
Capital Markets, Inc., a member of Scottish Re Group Ltd., is a
registered broker dealer that specializes in securitization of
life insurance assets and liabilities.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
May 10, 2007, Fitch Ratings has revised the Rating Watch on
these ratings of Scottish Re Group Ltd. (NYSE:SCT) to Positive
from Evolving:

     -- Issuer Default Rating 'B+';
     -- 7.25% Non-cumulative perpetual preferred stock 'B-/RR6'.

The Rating Watch on SCT was revised following the completion of
the US$600 million investment transaction with MassMutual
Capital Partners LLC, and affiliates of Cerberus Capital
Management, L.P.

As reported in the Troubled Company Reporter-Latin America on
May 9, 2007, Standard & Poor's Ratings Services raised its
counterparty credit rating on Scottish Re Group Ltd. to 'B+'
from 'B' and removed it from CreditWatch with developing
implications, where it was placed on Dec. 6, 2006.


SCOTTISH RE: Moody's Affirms (P)Ba3 Rating After MassMutual Deal
----------------------------------------------------------------
Moody's Investors Service confirmed Scottish Re Group Limited's
(senior unsecured shelf of (P)Ba3) ratings with a positive
outlook.

The rating action follows the completion of a US$600 equity
investment transaction in which Scottish Re sold a majority
stake to MassMutual Capital Partners LLC, a member of the
MassMutual Financial Group and Cerberus Capital Management,
L.P., a private investment firm.  The ratings had been under
review with direction uncertain since Sept. 5, 2006, when the
prospects for a sale of the company or a significant capital
injection appeared promising.  

The rating agency also confirmed with a positive outlook the
Baa3 insurance financial strength rating of the company's core
insurance subsidiaries, Scottish Annuity & Life Insurance
Company (Cayman) Ltd. and Scottish Re (U.S.).

The rating agency also continues its review (for downgrade) on
the unwrapped (i.e., lacking financial guaranty insurance) notes
issued by Orkney Re II, plc (Orkney Re II).  The unwrapped notes
issued by Orkney Re II include US$42.5 million of 30-year Series
A-2 Floating Rate Notes (Aa2); and US$30 million of 30-year
Series B Floating Rate Notes (Baa2).

As discussed in a September 7, 2006 Moody's press release, the
ratings of Orkney Re II's unwrapped notes are susceptible to
downgrade because elevated financial guarantor fees ultimately
divert cash away from the noteholders.  The amount and duration
of this fee increase are driven by the financial strength rating
of Scottish Re (U.S.), which was confirmed at Baa3.  According
to Scott Robinson, Vice President and Senior Credit Officer at
Moody's, "the series B Floating Rate Notes of Orkney Re II
remain especially vulnerable to downgrade, primarily due to
their subordination to the step-up in guarantor fees in the cash
flow waterfall."

Following the transaction, MassMutual Capital and Cerberus now
own 68.7% of the voting power of the Scottish Re shareholders.
According to Mr. Robinson, "the capital injection provides
Scottish Re much needed liquidity and time to implement its
comparatively more focused strategy, emphasizing the retention
of existing business and growing organically in life mortality
reinsurance."

Moody's says that the company has made and continues to make
material progress on improving internal controls and risk
management.  Additionally, Moody's believes that Scottish Re
will be able to secure a collateral solution to support the
growth in the company's XXX statutory reserving needs associated
with its existing level premium term reinsurance business.

According to Mr. Robinson "the major challenge for Scottish is
regaining the confidence of cedants so that it can write
meaningful amounts of new business.  If the company cannot do
so, it is effectively in runoff."

The rating agency notes that the positive outlook reflects the
strengthened discipline and controls that are expected to
influence the operations of the company going forward.  The
following would place upward pressure on the company's ratings:

   1) Retention of existing business and demonstrated
      improvement in originating new business

   2) Less earnings volatility and associated "one time" charges

   3) Mortality and lapses roughly in line with expectations

These ratings were confirmed and placed on positive outlook:

* Scottish Re Group Limited:

   -- senior unsecured shelf of (P)Ba3;
   -- subordinate shelf of (P)B1;
   -- junior subordinate shelf of (P)B1;
   -- preferred stock of B2; and
   -- preferred stock shelf of (P)B2

* Scottish Holdings Statutory Trust II:

   -- preferred stock shelf of (P)B1

* Scottish Holdings Statutory Trust III:

   -- preferred stock shelf of (P)B1

* Scottish Annuity & Life Insurance Co (Cayman) Ltd.

   -- insurance financial strength of Baa3

  * Premium Asset Trust Series 2004-4:

   -- senior secured debt of Baa3

* Scottish Re (U.S.), Inc.:

   -- insurance financial strength of Baa3

* Stingray Pass-Through Certificates:

   -- Baa3 (based on IFS rating of Scottish Annuity & Life
      Insurance Co.)

On Sept. 5, 2006, Moody's changed the direction of review for
Scottish Re's ratings to uncertain from possible downgrade.

Scottish Re Group Limited is a Cayman Islands company with
principal executive offices located in Bermuda; it also has
significant operations in Charlotte NC, Denver CO and Windsor
England. On March 31, 2007, Scottish Re reported assets of
US$13.5 billion and shareholders' equity of US$1.1 billion.

Moody's insurance financial strength ratings are opinions of the
ability of insurance companies to repay punctually senior
policyholder claims and obligations.




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B O L I V I A
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INTERNATIONAL PAPER: UBS Maintains Buy Rating on Firm's Shares
--------------------------------------------------------------
UBS analysts have kept their "buy" rating on International
Paper's shares, Newratings.com reports.

Newratings.com relates that the target price was set at US$44.

The analysts said in a research note published on May 17 that
International Paper's first quarter 2007 earnings per share were
ahead of the consensus, boosted by the acquisition in Brazil.

The analysts told Newratings.com that International Paper
achieved non-price improvement of US$65 million in the first
quarter 2007, and after repaying US$6 billion to the
shareholders, it might consider buying back further shares or
boost its dividend.

International Paper is moving ahead in line with its
transformation plan, Newratings.com states, citing UBS.

Based in Stamford, Connecticut, International Paper Co.
(NYSE: IP) -- http://www.internationalpaper.com/-- is in the    
forest products industry for more than 100 years.  The company
is currently transforming its operations to focus on its global
uncoated papers and packaging businesses, which operate and
serve customers in the U.S., Europe, South America and Asia.  
Its South American operations include, among others, facilities
in Argentina, Brazil, Bolivia, and Venezuela.  These businesses
are complemented by an extensive North American merchant
distribution system.  International Paper is committed to
environmental, economic and social sustainability, and has a
long-standing policy of using no wood from endangered forests.

                        *     *     *

International Paper Co. carries Moody's Investors Service's Ba1
senior subordinate rating and Ba2 Preferred Stock rating.


PETROLEO BRASILEIRO: Will Finalize Sale of Bolivian Refineries
--------------------------------------------------------------
Brazil's state-run oil firm Petroleo Brasileiro SA said in a
statement that it will meet with its Bolivian counterpart
Bolivia's state oil company Yacimientos Petroliferos Fiscales
Bolivianos to conclude the sale of the Guillermo Elder Bell and
Gualberto Villarroel plants.

As reported in the Troubled Company Reporter-Latin America on
May 14, 2007, the Bolivian government and YPFB accepted Petroleo
Brasileiro's proposal for the sale of the two plants.  Bolivia's
Hydrocarbons and Energy Minister, Carlos Villegas, sent Petroleo
Brasileiro a letter in which he agreed to the general terms the
company set forth for the full sale of the firm's stake in the
refineries for US$112 million.  The procedures for refinery
control transference and the form of payment will be made formal
in the upcoming days.

Business News Americas relates that Petroleo Brasileiro gave
YPFB last week all the information and documents needed to
complete the sale.

Petroleo Brasileiro said in a statement that it doesn't see any
obstacle to the immediate sale and transfer of the operations to
YPFB, and hopes the transaction can be concluded immediately.

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.


* BOLIVIA: May Work with Entel for Rural Telecom Services
---------------------------------------------------------
Bolivia's government said in a statement that it could work with
telecoms operator Entel to offer subsidized telecommunications
services in rural areas.

Local economists association Colegio Nacional de Economistas
President Waldo Lopez told Business News Americas that Entel
could offer a special rate, aided by state subsidies, for
Internet and basic telephony services in remote parts and poor
sectors in Bolivia that are not profitable for telecom firms.

BNamericas relates that the Bolivian government holds 47% of
Entel, while European telecoms operator Telecom Italia's unit
Euro Telecom Internacional owns 50% of the firm.

According to BNamericas Bolivian officials are trying to
negotiate Entel's nationalization.

As reported in the Troubled Company Reporter-Latin America on
April 26, 2007, the Bolivian government said that it regained
control of a 47% interest in telecom company Entel from pension
fund managers Futuro de Bolivia and BBVA Prevision.  The
government issued a supreme decree on April 23 that obligated
the pension funds to surrender the 47% interest in Entel to the
state.  

Telecom Italia pulled its workers out of Bolivia at the end of
April.  It is seeking arbitration by the World Bank's
International Center for Settlement of Investment Disputes to
make sure that Bolivia can't renationalize Entel by force,
BNamericas states.

                        *     *     *

Fitch Ratings assigned these ratings on Bolivia:

                     Rating     Rating Date

   Country Ceiling    B-       Jun. 17, 2004
   Long Term IDR      B-       Dec. 14, 2005
   Local Currency
   Long Term Issuer


* BOLIVIA: Will Hire Int'l Firm to Assess Gas Companies' Value
--------------------------------------------------------------
Bolivian Energy Minister Carlos Villegas told Reuters that the
country will hire an international firm to assess the value of
private oil and gas companies once owned by the government.

The audit of the firms' value would be completed in about three
months.  Then Bolivia's state-owned oil firm Yacimientos
Petroliferos Fiscales Bolivianos would launch negotiations to
buy shares to take over the companies, Reuters notes, citing
Minster Villegas.

Reuters relates that the production, exploration and gas-
transport companies being considered for nationalization used to
be assets of YPFB, which kept a stake of below 50% when they
were privatized in the 1990s.  They produce a small amount of
the nation's natural gas.  They are:

          -- Andina, controlled by Spain's Repsol YPF;
          -- Chaco, owned by BP Amoco; and
          -- Transredes, which is part-owned by Royal Dutch
             Shell Plc.

According to Reuters, the Bolivian government will also take the
control of storage and pipeline firm Bolivian Hydrocarbons
Logistics Company from Germany's OilTanking and Peru's Grana
Montero, S.A.

Minister Villegas commented to Reuters, " We are going to comply
with the nationalization decree, which says that YPFB will
assume control of at least 50% plus one share of those
companies."

Reuters states that the government has no plans of taking
controlling stakes in larger producers, which include:

          -- Brazil's Petroleo Brasileiro,
          -- France's Total,
          -- Britain's BG Group Plc, and
          -- Argentina's Pluspetrol.

                        *     *     *

Fitch Ratings assigned these ratings on Bolivia:

                     Rating     Rating Date

   Country Ceiling    B-       Jun. 17, 2004
   Long Term IDR      B-       Dec. 14, 2005
   Local Currency
   Long Term Issuer




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


AMERICAN AXLE: Bags New Contract with Chery Automobile
------------------------------------------------------
American Axle & Manufacturing, Inc., during the Grand Opening of
its Changshu (China) office, has been awarded a new contract by
Chery Automobile Co., Ltd., to produce rear drive modules -- RDM
-- for a 2009 model-year crossover vehicle.

The RDM was developed for a front-wheel-drive based crossover
vehicle with an all-wheel-drive option. It includes an AAM
PowerLite(R) aluminum rear axle, featuring AAM's PowerDense(R)
gear technology.  The RDM offers greater torque capacity than
similar-sized competitor products, which allows for weight,
packaging, and durability improvements that maximize performance
and improve fuel economy.

"We are extremely pleased to announce this new business with a
new Asian customer, Chery," said AAM Co-Founder, Chairman & CEO
Richard E. Dauch.  "Chery is one of the leading vehicle
producers in China and we are honored to have been chosen to be
a part of its venture into the crossover vehicle arena.

"The market shift towards all-wheel drive passenger cars and
crossover vehicles plays right to AAM's strength in developing
highly engineered, advanced technology driveline products and
systems for the global marketplace."

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

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 28, 2007, Fitch has assigned a 'BB' rating to American Axle
& Manufacturing's (NYSE: AXL) new senior unsecured notes due
2017.  Fitch has also affirmed American Axle's existing ratings:

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


BANCO NACIONAL: Acquires 31.4% Stake in Light
---------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social has
obtained a 31.4% stake in power distributor Light by converting
debentures into BRL6.17 billion company shares, according to a
statement by Light.

Banco Nacional said in a statement, "Our stake in Light
reinforces BNDES's [Banco Nacional] trust in the company's
sustainable growth."

Business News Americas relates that Banco Nacional has two years
to change additional debentures into 6.86 billion shares.

"BNDES has a long-term vision for the company and an eventual
sale would take place in a structured way," Banco Nacional told
BNamericas.

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.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Nov. 1, 2006, Moody's Investor Services took these rating
actions on Banco Nacional de Desenvolvimento Economico e Social:

   -- long-term Senior Unsecured (foreign currency) --
      Baa3/stable from Ba1/under review for upgrade;

   -- long-term Bank Deposits (foreign currency) -- Ba3/stable
      (unchanged);

   -- long-term Issuer Rating (domestic currency) -- A1/stable
      from A3/under review for upgrade;

   -- short-term Bank Deposits (foreign currency) -- NP
      (unchanged);

   -- short-term Issuer Rating (domestic currency) -- P-1 from
      P-2

   -- Baseline Credit Assessment: 12;

   -- Support: High; and

   -- Brazil's LCDC: A1


BANCO NACIONAL: S&P Lifts Rating to BB+ from BB
-----------------------------------------------
Standard & Poor's Ratings Services raised its long-term foreign
currency counterparty credit rating on four Brazilian
government-related entities to 'BB+' from 'BB', namely Banco
Nacional do Desenvolvimento Economico e Social, Eletrobras -
Centrais Eletricas Brasileiras S.A., Banco do Brasil S.A., and
Banco do Nordeste do Brasil S.A.
     
The upgrades reflect the raising of the long-term foreign
currency sovereign credit rating on Brazil to 'BB+'.  At the
same time, we raised our long-term local currency ratings on
BNDES and Eletrobras to 'BBB' from 'BB+' and on Banco do Brasil
to 'BB+' from 'BB'.  S&P also affirmed the 'BB+' long-term local
currency rating on BNB.  All ratings have a positive outlook.
     
The upgrade of BNDES and Eletrobras to the same level of the
sovereign local currency rating and the maintenance of the
distinction between local and foreign currency ratings reflects
the role played by both entities on a nationwide basis for
economic development and electric energy, respectively.  S&P see
both entities as public policy-based institutions, with credit
quality closely associated with that of the government.  
Therefore, the rating on BNDES and Eletrobras will move in
tandem with those on the sovereign in the future.
     
The local and foreign currency ratings on Banco do Brasil and
BNB are equalized at 'BB+'.
     
S&P see BNB as largely a public policy institution, due to its
role as the sole provider of long-term financing to the
industrial and agricultural sectors in the northeastern region
of Brazil, and its 96% ownership by the Federative Republic of
Brazil.  The rating on BNB continues to benefit from substantial
implied sovereign support, but its ratings are not equalized
with those on the sovereign due to its weaker stand-alone credit
characteristics and regional, rather than country-wide,
development role.
     
S&P see Banco do Brasil as having stronger features of a
commercial enterprise, even though it retains its public policy
role.  Although Banco do Brasil is 72% owned directly by the
federal government and is an agent of the federal government for
the agricultural sector, it also acts as a commercial bank and
competes with private sector banks in some areas.  It has a
large branch network in its area of operation and captures
funding from market sources to conduct financial operations on
its own.  As S&P consider Banco do Brasil largely a commercial
enterprise, they use a bottom-up approach to the rating, in
which S&P assess the stand-alone creditworthiness of the bank
and incorporate notches for government/parent support.  A GRE
considered a commercial enterprise would not have ratings higher
than the sovereign foreign currency rating, unless its stand-
alone creditworthiness exceeded that of the sovereign.


BANDEIRANTE ENERGIA: Moody's Lifts Corp. Family Rating at Ba2
-------------------------------------------------------------
Moody's America Latina upgraded the senior unsecured corporate
family rating of Bandeirante Energia S.A. to Ba2 from Ba3 on its
global scale and to Aa3.br from A3.br on its Brazilian national
scale.  This concludes the review for possible upgrade that
commenced on April 13, 2007.

Because Moody's has assigned a corporate family rating of Ba3 on
its global scale and Aa3.br on its Brazilian national scale to
Bandeirante's parent, EDP -- Energias do Brasil S.A., it will
withdraw Bandeirante's corporate family ratings, while
simultaneously assigning senior unsecured issuer ratings of Ba2
on the global scale and Aa3.br on the Brazilian national scale.  
As a result, Bandeirante's senior unsecured local currency
debentures due 2011 were upgraded to Ba2 from Ba3 on the global
scale and to Aa3.br from A3.br on the Brazilian national scale.  
The outlook for all ratings is stable.

Ratings upgraded and subsequently withdrawn:

   -- Corporate Family Rating: to Ba2 from Ba3 (Global Local
      Currency); to Aa3.br from A3.br (Brazilian National Scale)

Ratings assigned:

   -- Senior Unsecured Issuer Rating: Ba2 (Global Local
      Currency); Aa3.br (Brazilian National Scale)

Ratings upgraded:

   -- BRL 250 million senior unsecured local currency debentures
      due 2011: to Ba2 from Ba3 (Global Local Currency); to
      Aa3.br from A3.br (Brazilian National Scale).

   -- Outlook: Stable

The upgrade of Bandeirante's ratings reflects its overall
improved debt protection metrics and liquidity position
including FFO / Total Adjusted Debt (net of regulatory assets)
of 67.4% at March 31, 2007 (last twelve months) and cash
position plus free cash flow to short-term adjusted debt (net of
short-term regulatory assets) consistently above 130%. These
credit metric improvements reflect the combination of the
gradual recovery in demand for energy in its concession
territory and consistent tariff adjustments, as well as the
replacement of short-term debt with long term loans over the
past several quarters.

The Ba2 global local currency issuer rating of Bandeirante
balances its exclusively regulated power distribution activity
under a long-term concession contract (2028) with uncertainties
related to the Brazilian regulatory environment for power
utilities particularly with regard to potential interference
from the Federal Government.  In Moody's view, regulated
operations provide more stable and predictable revenues and cash
flows relative to non-regulated activities.  The rating also
factors in Bandeirante's healthy corporate governance practices
and one-notch uplift on the global scale from the indirect
majority ownership of Bandeirante by EDP -- Energias de Portugal
(rated A2, under review for possible downgrade).

While the Ba2 global scale rating reflects the global default
and loss expectation of Bandeirante, its Aa3.br national scale
rating reflects the standing of the company's credit quality
relative to its domestic peers.  National Scale Ratings (NSRs)
are intended as relative measures of creditworthiness among debt
issues and issuers within a country, enabling market
participants to better differentiate relative risks.  NSRs in
Brazil are designated by the ".br" suffix.  NSRs differ from
global scale ratings in that they are not globally comparable to
the full universe of Moody's rated entities, but only with other
rated entities within the same country.

The stable outlook reflects Moody's expectation that the company
will continue to benefit from a monopolistic position in its
concession area and will maintain strong debt protection metrics
and healthy liquidity position in the near term.

Moody's believes that Bandeirante will look to maintain Total
Debt / Capitalization ratio at around 50%, thus optimizing its
capital structure as defined by the regulator ANEEL. As a
result, Moody's expects any excess cash flow will be used to
either strengthen its cash position when needed and / or
distributed to shareholders, rather than to reduce indebtedness.
Consequently, any upward pressure on the ratings or outlook
would most probably derive from Moody's view of a continuing
positive trend in the regulatory environment combined with the
maintenance of strong debt protection metrics and adequate
liquidity position, such as FFO to Total Adjusted Debt (net of
regulatory assets) above 30% on a sustainable basis and a cash
position plus free cash flow to short-term debt (net of short-
term regulatory assets) ratio above 130%.

Conversely, the ratings or outlook would come under negative
pressure should debt protection metrics such as FFO to Total
Adjusted Debt (net of regulatory assets) fall to below 25% for
an extended period of time together with a deterioration of
Bandeirante's liquidity position. Additionally, a deterioration
of the regulatory environment could have a negative impact on
the ratings or outlook.

Headquartered in Sao Paulo, Brazil, Bandeirante Energia S.A is
an electricity distribution utility serving approximately
1,345,000 clients in the industrialized state of Sao Paulo with
net revenues of BRL1,775 million (US$822 million) in the last
twelve months ended March 31, 2007.


BAUSCH & LOMB: Moody's Reviews Ratings Over Warburg Merger Deal
---------------------------------------------------------------
Moody's Investors Service stated that it will continue its
review of Bausch & Lomb Incorporated's ratings for possible
downgrade following the announcement that the company has
entered into a definitive merger agreement with affiliates of
Warburg Pincus.

The proposed transaction is valued at approximately US$4.5
billion, including approximately US$830 million of debt.  BOL's
Board of Directors has unanimously approved the merger
agreement.

The transaction is subject to certain closing conditions,
including the approval of BOL shareholders, regulatory approval
and the satisfaction of other customary closing conditions.  
Additionally, there is no financing condition to consummate the
transaction.  Under the merger agreement, BOL may solicit
proposals from third parties during the next 50 days. If BOL
enters into another definitive agreement, BOL would be obligated
to pay Warburg Pincus a $40 million break-up fee.

Sidney Matti, Analyst, stated that, "The review for possible
downgrade will focus primarily on the company's post-acquisition
capital structure and the likelihood that BOL's post-acquisition
credit metrics would fall below the 'Ba' rating category."

These ratings remain on review for possible downgrade:

   -- Ba1 Corporate Family rating;

   -- Ba1 Probability of Default rating;

   -- Ba1 (LGD4/52%) rating on $133.2 million Senior Unsecured
      Notes due 2007;

   -- Ba1 (LGD4/52%) rating on $50 million Senior Unsecured
      Notes due 2008;

   -- Ba1 (LGD4/52%) rating on $160 million Senior Unsecured
      Notes due 2023;

   -- Ba1 (LGD4/52%) rating on $0.4 million Senior Unsecured
      Notes due 2026;

   -- Ba1 (LGD4/52%) rating on $66.4 million Senior Unsecured
      Notes due 2028; and

   -- Ba1 rating on a Medium Term Note Program.

                      About Bausch & Lomb

Bausch & Lomb (NYSE:BOL) -- http://www.bausch.com/-- is the eye  
health company, dedicated to perfecting vision and enhancing
life for consumers around the world.  Its core businesses
include soft and rigid gas permeable contact lenses and lens
care products, and ophthalmic surgical and pharmaceutical
products.  The Bausch & Lomb name is one of the best known and
most respected healthcare brands in the world.  Founded in 1853,
the company is headquartered in Rochester, New York, and employs
approximately 13,000 people worldwide.  Its products are
available in more than 100 countries.

The company manages its business through five business segments,
which include three regional commercial segments: the Americas;
Europe, Middle East and Africa (Europe), and Asia, and two
centralized functions: Global Operations and Engineering, and
Research and Development.  The company's international
operations include Brazil, Mexico, Australia, China, France, and
Germany, among others.


BIO-RAD LABORATORIES: DiaMed Purchase Cues S&P to Hold Ratings
--------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its ratings on Bio-
Rad Laboratories (BB+/Stable/--) following the company's
agreement to purchase a majority of DiaMed Holding AG for US$392
million.

A subsequent tender for the remaining shares could bring the
total price to more than US$450 million.  DiaMed develops,
manufactures, and markets reagents and instruments used in blood
typing and screening.  The transaction is expected to close
later this year and is subject to certain closing conditions,
including regulatory approvals.
      
"Although financial terms of the agreement were not disclosed,
S&P believe there will be minimal impact on Bio-Rad's credit
protection measures given the relatively small size of the
acquisition," explained Standard & Poor's credit analyst David
Lugg.  "With almost US$470 million in cash and investments and
its strong cash flow protection measures, the company has
adequate capacity to complete this transaction without an impact
to the ratings."
     
The high-speculative-grade rating on Hercules, California-based
Bio-Rad reflects the company's defensible, but niche, positions
in the life science and clinical laboratory markets, and its
history of using significant debt-financed acquisitions to
supplement growth.  Notwithstanding Bio-Rad's defensible
positions in the in vitro diagnostics and life sciences markets,
it remains a relatively small player in each, competing with
significantly larger companies that are more diversified and
have greater financial resources.  Moreover, Bio-Rad's
substantial international operations, which account for about
65% of sales, subject its revenues to swings in exchange rates
and ongoing changes in global economic conditions.  The
company's life science
business is also vulnerable to reductions in government funding
for life science research and changes in biopharmaceutical
companies' R&D spending.
     
Bio-Rad maintains an intermediate financial risk posture, having
steadily reduced its borrowings to fund a series of acquisitions
in the diagnostic market.  Currently, lease-adjusted total debt
to capital is 37% and total debt to EBITDA is about 2.5x, while
the ratio of funds from operations to debt is about 25%.  The
company has no defined benefit pension plan.

Bio-Rad Laboratories, Inc. -- http://www.bio-rad.com/-- (AMEX:  
BIO and BIOb), manufactures and distributes a broad range of
products for the life science research and clinical diagnostics
markets.  Founded in 1952, Bio-Rad is headquartered in Hercules,
California, and serves more than 85,000 research and industry
customers worldwide through its global network of operations.  
The company employs over 5,000 people globally and had revenues
of nearly US$1.3 billion in 2006.

The company has entered into an agreement to acquire DiaMed.
Diamed -- http://www.diamed.ch/-- develops and manufactures  
test systems aimed at providing laboratories with ease of use,
safety, and reliability.  The company is situated in Cressier
sur Morat, Switzerland, near Fribourg, between Bern and
Lausanne.  DiaMed has local manufacturing facilities in Brazil,
Tunisia and France.


DELPHI CORPORATION: UAW Delivers Counterproposal
------------------------------------------------
The International Union, United Automobile, Aerospace and
Agricultural Implement Workers of America has offered its
"final" counterproposal on wages and benefits to Delphi Corp.

On May 14, 2007, the UAW formally presented to Delphi and the
Plan Investors led by Appaloosa Management L.P., a roughly 10-
page proposal offering concessions on the parties' wage and
labor dispute, David Shepardson, writing for The Detroit News,
reports.

The UAW has not publicly divulged the terms of the Proposal.  
Any agreement reached by the parties, however, will be publicly
available when the Debtors present the agreement to the Court
for approval.  "The only thing I can say is that a proposal was
delivered as our Vice President Cal Rapson said it would.  But I
don't know any more than that.  No one does.  They've been very
tight-lipped," said Paul Siejak, president of UAW Local 686 Unit
No. 1, according to the Dayton Business Journal.

Delphi, the Plan Investors, and other stakeholders met with UAW
officials in Detroit at the UAW-DaimlerChrysler National
Training Center on May 15 to discuss the UAW Proposal, Mr.
Shepardson says.  Another meeting on the Proposal could be held
on Friday.

The UAW Proposal is extremely complex, in part because it refers
to appendixes and various aspects of the more than 100-page
master labor agreement between the UAW and Delphi, Mr.
Shapardson relates, citing a person involved in the talks.  The
UAW Proposal suggests that some of the Delphi plants targeted
for closure in connection with the company's restructuring could
remain open in a discussion on "wind down" procedures.

"It's a good-faith proposal that we are all taking a close look
at," the unnamed source told Mr. Shepardson.  "We're still
trying to understand it."

The UAW/Delphi Master Labor Agreement will expire in September
but a supplemental pact between the parties will stay in effect
until 2011.  According to Mr. Shepardson, the UAW will begin
negotiating a new master labor agreement with Delphi this
summer.

An agreement between the UAW and Delphi is crucial to the
success of Delphi's Plan Framework Agreements with the Plan
Investors, whereby the Investors intend to acquire, at most, a
70% equity stake in Delphi, and bring the company out of
bankruptcy as a newly capitalized business.

                 About Delphi Corporation

Troy, Mich.-based Delphi Corporation -- http://www.delphi.com/
-- is the single largest global supplier of vehicle electronics,
transportation components, integrated systems and modules, and
other electronic technology.  The company's technology and
products are present in more than 75 million vehicles on the
road worldwide.  Delphi has regional headquarters in Japan,
Brazil and France.

Fitch Ratings has assigned a rating of 'BB-' to Delphi
Corporation's US$2 billion of debtor-in-possession credit
facilities.  The DIP facilities will consist of a revolving
credit portion and a term loan portion and are to be pari passu
with each other in terms of priority of repayment, collateral,
and guarantees.  The term loan and revolving credit will,
therefore, share the same ratings.

Standard & Poor's Ratings Services lowered its ratings on Delphi  
Corp. to 'D' after the company's U.S. operations filed for
Chapter 11 bankruptcy protection.  The recovery rating on
Delphi's senior secured bank facility was withdrawn.  Delphi,
the largest U.S. manufacturer of automotive components, has
total debt of about US$6 billion and total unfunded pension
obligations and other postretirement employee benefit
liabilities of about US$14.5 billion.

The company filed for chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481).  John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts.  Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors.  As of
Aug. 31, 2005, the Debtors' balance sheet showed
US$17,098,734,530 in total assets and US$22,166,280,476 in total
debts.  (Delphi Bankruptcy News, Issue No. 48; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or   
215/945-7000).

The Debtors' exclusive plan-filing period expires on
July 31, 2007.


ENERGIAS DO BRASIL: Moody's Puts Ba2 Corporate Family Rating
------------------------------------------------------------
Moody's America Latina assigned a senior unsecured corporate
family rating of Ba2 on its global scale and Aa3.br on its
Brazilian national scale to EDP- Energias do Brasil S.A.  The
outlook of the ratings is stable.

The Ba2 global local currency rating combines EDB's overall
strong debt protection metrics and good liquidity position with
the fact that most of its consolidated revenues are derived from
regulated activities based on long-term concession contracts
that benefit from monopolistic market positions despite
uncertainties related to the Brazilian regulatory environment
for power utilities.  Also, the rating benefits from a one-notch
uplift on the global scale from the majority ownership by EDP --
Energias de Portugal (rated A2, under review for possible
downgrade).

Over the past several years EDB has reported continuous
improvements in overall credit metrics on a consolidated basis,
including FFO / Total Adjusted Debt (net of regulatory assets)
of 42.4% at March 31, 2007 (last twelve months), supported by
the strengthened performance of its distribution subsidiaries
that have benefited from the gradual recovery of demand for
electricity and consistent tariffs adjustments after the
rationing period in 2001-2002.  Moody's expects debt protection
metrics to improve further in the near term in connection with
the start up of the 452MW Peixe Angical hydropower plant in
September 2006.  EDB's strong liquidity position is evidenced by
its cash position plus free cash flow to short-term debt (net of
short-term regulatory assets) ratio that has consistently been
above 130% over the past year, reflecting prudent financial
management.

About 90% of EDB's consolidated net revenues (after elimination
of intragroup sales) are generated by its three electricity
distribution subsidiaries Bandeirante Energia S.A., Espirito
Santo Centrais Eletricas S.A., and Empresa Energetica do Mato
Grosso do Sul S.A., whose operations are fully regulated and
based on concession agreements that ensure an essentially
monopolistic position in their respective concession territories
and don't expire before 2025.  Moody's regards regulated
operations as supportive of more stable and predictable revenues
and cash flows relative to non-regulated activities.  The
remaining 10% of consolidated revenues are generated by EDB's
electricity trading subsidiary Enertrade Comercializadora de
Energia S.A., which main objective is to trade energy in the
free market with primary focus on clients that are located in
the concession areas of the group's distribution subsidiaries.
Enertrade operates with conservative risk management limits.

The ratings of EDB are constrained by the uncertainties related
to the evolving regulatory environment for Brazil's electricity
sector.  Although Moody's recognizes that, in general, the new
Brazilian regulatory framework for the energy sector has
provided a more stable environment for the industry players over
the last several years, the potential for interference by the
Federal Government remains a concern.

In line with Moody's global methodology with respect to ratings
of non-guaranteed subsidiaries, the assigned ratings also
incorporate the strong ownership of EDB by EDP - Energias de
Portugal S.A. (rated A2, under review for possible downgrade),
Portugal's dominant electric utility.  While EDP does not
guarantee EDB's debt and expects that its subsidiaries will
remain financially self sustainable, as stated in its policies,
Moody's believes that the Brazilian operations of EDP occupy an
important role in the group's growth strategy, supporting one
notch of uplift of the rating on the global scale due to EDP's
majority ownership.

While the Ba2 global scale rating reflects the global default
and loss expectation of EDB, its Aa3.br national scale rating
reflects the standing of its credit quality relative to its
domestic peers.  National Scale Ratings are intended as relative
measures of creditworthiness among debt issues and issuers
within a country, enabling market participants to better
differentiate relative risks.  NSRs in Brazil are designated by
the ".br" suffix.  NSRs differ from global scale ratings in that
they are not globally comparable to the full universe of Moody's
rated entities, but only with other rated entities within the
same country.

The stable outlook reflects Moody's expectation that EDB will
continue to benefit from strong cash flows provided by its
distribution and generation subsidiaries, and that management
will maintain financial discipline while executing mandatory
capex at the distribution subsidiaries and planned investments
in power generation in the coming years.  Moody's believes that
EDB will look to maintain Total Debt / Capitalization ratio
close to 50% in the near term recognizing the need to optimize
the capital structure at the distribution subsidiaries as
defined by the regulator ANEEL.

Moody's expects excess cash flow will be used to strengthen
EDB's cash position when necessary and / or distributed to
shareholders, rather than to reduce indebtedness.  Consequently,
any upward pressure on the ratings or outlook would most
probably derive from Moody's view of a continuing positive trend
in the regulatory environment combined with the maintenance of
strong debt protection metrics and adequate liquidity position,
such as FFO to Total Adjusted Debt (net of regulatory assets) at
around 30% on a sustainable basis and a cash position plus free
cash flow to short-term debt ratio (net of short term regulatory
assets) above 130%.

Conversely, the ratings or outlook would come under negative
pressure should debt protection metrics such as FFO to Total
Adjusted Debt (net of regulatory assets) fall to below 25% for
an extended period of time together with a deterioration of
EDB's liquidity position.  Additionally, a deterioration of the
regulatory environment could have a negative impact on the
ratings or outlook.

EDP- Energias do Brasil is an integrated utility group
controlled by EDP - Energias de Portugal, with activities in
generation, distribution and commercialization of electricity.  
Its power distribution subsdiaries Bandeirante, Escelsa and
Enersul represent altogether some 64% of consolidated total
assets, while the power generation assets represent some 31%.
EDB reported consolidated net revenues of BRL4,112 million
(US$1.90 billion) in the last twelve months ended March 31,
2007.


ESPIRITO SANTO CENTRAIS: Moody's Lifts Currency Rating to Ba2
-------------------------------------------------------------
Moody's America Latina upgraded the senior unsecured local
currency debentures of Espirito Santo Centrais Eletricas S.A. --
Escelsa to Ba2 from Ba3 on its global scale and to Aa3.br from
A3.br on its Brazilian national scale.

Simultaneously, Moody's upgraded Escelsa's foreign currency
senior unsecured notes due 2007 to Ba2 from Ba3, and assigned
issuer ratings of Ba2 on its global scale and Aa3.br on its
Brazilian national scale to Escelsa.

The Ba2 foreign currency rating of Escelsa's 2007 notes is not
constrained by Brazil's Ba1 sovereign ceiling.  The outlook for
all ratings is stable.  This concludes the review for possible
upgrade that commenced on April 13, 2007.

Ratings upgraded are:

   -- BRL264 million senior unsecured local currency debentures
      due 2011: to Ba2 from Ba3 (Global Local Currency); to
      Aa3.br from A3.br (Brazilian National Scale).

   -- US$114 million Foreign Currency Senior Unsecured Notes due
      July 2007: to Ba2 from Ba3.

Ratings assigned are:

   -- Senior Unsecured Issuer Rating: Ba2 (Global Local
      Currency); Aa3.br (Brazilian National Scale)

   -- Outlook: Stable

The upgrade of Escelsa's ratings reflects its overall improved
debt protection metrics and liquidity position including FFO /
Total Adjusted Debt (net of regulatory assets) of 63.2% at
March 31, 2007 (last twelve months) and cash position plus free
cash flow to short-term adjusted debt (net of short-term
regulatory assets) consistently above 130%.  These credit metric
improvements reflects the combination of the gradual recovery in
demand for energy in its concession territory and consistent
tariff adjustments together, as well as the replacement of
short-term debt with long term loans over the past several
quarters while addressing 2007 refinancing needs on a timely
basis.

The Ba2 global local currency issuer rating of Escelsa balances
its exclusively regulated power distribution activity under a
long-term concession contract (2025), with uncertainties related
to the Brazilian regulatory environment for power utilities
particularly with regard to potential interference from the
Federal Government.  In Moody's view, regulated operations
provide more stable and predictable revenues and cash flows
relative to non-regulated activities.  The rating also factors
in Escelsa's healthy corporate governance practices and one-
notch uplift on the global scale from the indirect majority
ownership of Escelsa by EDP -- Energias de Portugal (rated A2,
under review for possible downgrade).

While the Ba2 global scale rating reflects the global default
and loss expectation of Escelsa, its Aa3.br national scale
rating reflects the standing of the company's credit quality
relative to its domestic peers.  National Scale Ratings (NSRs)
are intended as relative measures of creditworthiness among debt
issues and issuers within a country, enabling market
participants to better differentiate relative risks.  NSRs in
Brazil are designated by the ".br" suffix.  NSRs differ from
global scale ratings in that they are not globally comparable to
the full universe of Moody's rated entities, but only with other
rated entities within the same country.

The stable outlook reflects Moody's expectation that the company
will continue to benefit from its monopolistic position in its
concession area and will maintain strong debt protection metrics
and healthy liquidity position in the near term while executing
mandatory investments.

Moody's believes that Escelsa will look to maintain Total Debt /
Capitalization ratio at around 50%, thus optimizing its capital
structure as defined by the regulator ANEEL.  As a result,
Moody's expects any excess cash flow will be used to either
strengthen its cash position when needed and / or distributed to
shareholders, rather than to reduce indebtedness.  Consequently,
any upward pressure on the ratings or outlook would most
probably derive from Moody's view of a continuing positive trend
in the regulatory environment combined with the maintenance of
strong debt protection metrics and liquidity position, such as
FFO to Total Adjusted Debt (net of regulatory assets) above 30%
on a sustainable basis and a cash position plus free cash flow
to short-term debt (net of short-term regulatory assets) ratio
above 130%.

Conversely, the ratings or outlook would come under negative
pressure should debt protection metrics such as FFO to Total
Adjusted Debt (net of regulatory assets) fall to below 25% for
an extended period of time together with a deterioration of
Escelsa's liquidity position.  Additionally, a deterioration of
the regulatory environment could have a negative impact on the
ratings or outlook.

Headquartered in Vitoria, Brazil, Espirito Santo Centrais
Eletricas S.A. - Escelsa is an electricity distribution utility,
serving approximately 1,071,100 clients in the state of Espirito
Santo with net revenues of BRL1,165 million (US$540 million) in
the last twelve months ended March 31, 2007.


PETROLEO BRASILEIRO: Unit Inks Supply Pact with Companhia Vale
--------------------------------------------------------------
Graca Foster -- the head of Petroleo Brasileiro SA's retail
distribution arm Petrobras Distribuidora -- has signed a diesel
supply contract with Companhia Vale do Rio Doce's logistics
executive director Eduardo Bartolomeu, Agencia Brasil reports.

Agencia Brasil relates that under the contract, Petrobras
Distribuidora will supply B20 -- a mixture of 20% biodiesel and
80% common diesel -- to Companhia Vale.   The fuel will be used
in the engines that run on the Carajas Railway and on the
Railway linking Espirito Santo's Vitoria to Minas Gerais.

The agreement will make Companhia Vale one of the main consumers
of biodiesel in the world, Agencia Brasil states.  

                    About Companhia Vale

Companhia Vale do Rio Doce is engaged in mining, non-ferrous
metal production and logistics, as well as energy, aluminum and
steel activities.  Its principal lines of business consist of
mining and logistics.  The company holds exploration claims that
cover 8.7 million hectares (21.5 million acres) in Brazil, and
19.8 million hectares (48.9 million acres) in Angola, Argentina,
Australia, Chile, Gabon, Guinea, Mongolia, Mozambique, Peru and
South Africa.  It operates logistics systems, including
railroads and ports that are integrated with its mining
operations.  Directly and through affiliates and joint ventures,
CVRD has investments in the aluminum-related, energy and steel
businesses.  It is also investing in copper, nickel and coal
exploration.  

                 About Petrobras Distribuidora

Headquartered in Rio de Janeiro, Petrobras Distribuidora is the
retail distribution arm of Brazil's state-owned oil company,
Petroleo Brasileiro SA.  From its warehouses and more than 6,900
service stations, Petrobras Distribuidora (known by the brand
name BR) furnishes the nation with petroleum derivative
products, including gasoline, lubes, fuel oil, hydrated alcohol,
and natural gas.  Petrobras Distribuidora is also building up
its market position in a number of neighboring countries,
including Argentina, Bolivia, Chile, and Uruguay.  No longer
publicly traded, Petroleo Brasileiro acquired all of the
company's shares in 2003.

                  About Petroleo Brasileiro

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

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

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

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

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

    
REMY INTERNATIONAL: Moody's Cuts Junk PDR Over Interest Payments
----------------------------------------------------------------
Moody's Investors Service has lowered the Probability of Default
Ratings of Remy International, Inc. to LD from Ca.  The
company's other ratings, including the Corporate Family Rating,
remain under review for possible downgrade.  

The Probability of Default rating of LD reflects the expiration
of the 30-day interest payment grace period for the approximate
US$7 million of interest payments due on April 15, 2007, for the
9-3/8% senior subordinated notes.  The rating also reflects that
the company remains current on its second priority senior
floating rate notes and senior secured bank credit facility.

On April 16, 2007, Remy announced that it had entered into
forbearance agreements with almost 90% of its unsecured
noteholders.  The forbearance agreements, which remain in
effect, are expected to facilitate ongoing discussions with
representatives of a majority of the holders of its outstanding
notes regarding a recapitalization plan to delever the Company's
balance sheet.  While the second-priority senior secured
noteholders have not provided waivers, the fact that their
interest was paid may induce them to forbear from accelerating
in order to support further negotiations.  Remy also announced
that it continued to have access to its revolving credit
facility indicating that interim waivers have been attained.

The review for downgrade continues to reflect the uncertainty
associated with the successful completion of a restructuring
outside of Chapter 11 combined with the ongoing challenges in
the automotive parts supply sector.  A successful restructuring
is dependent on keeping the forbearance agreement in place and
the second-priority senior secured noteholders from
accelerating.  Indications that forbearance agreements are no
longer in place or of deeper expected losses on restructuring of
the existing debt may result in further downgrades.

Ratings lowered:

   -- Probability of Default Rating, to LD from Ca;

Ratings under review:

   -- Corporate Family Rating, Ca;

   -- US$125 million of guaranteed second-priority senior
      secured floating rate notes, Caa3 (LGD3, 49%);

   -- US$145 million of 8.625% guaranteed senior unsecured notes
      to Ca (LGD4, 69%);

   -- US$150 million of 9.375% guaranteed senior subordinated
      notes, to C (LGD6, 91%);

   -- US$165 million of 11% guaranteed senior subordinated
      notes, to C (LGD6, 91%);

The last rating action was on April 16, 2007 when the ratings
were lowered and the ratings placed under review.

The US$80 million senior secured term loan and the senior
secured asset based revolving credit facility are not rated by
Moody's.

Remy International, Inc., is headquartered in Anderson, Indiana.
The company is a leading global manufacturer and remanufacturer
of aftermarket and original equipment electrical components for
automobiles, light trucks, heavy-duty trucks and other heavy-
duty vehicles.  Remy International is privately owned in the
following approximate percentages by affiliates of Citicorp
Venture Capital (70%); Berkshire Hathaway (20%); and
management/miscellaneous other investors (10%).  Remy was formed
in 1994 as a partial divestiture by General Motors Corp. of the
former Delco Remy Division, which traces its roots to Remy
Electric, founded in 1896.  Its Latin American operations are in
Brazil and Mexico.  Annual revenues over the last twelve months
approximated US$1.3 billion.




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


ANOM LTD: Sets Final Shareholders Meeting for June 14
-----------------------------------------------------
Anom Ltd. will hold its final shareholders meeting on
June 14, 2007, at 10:00 a.m., at the office of the company.

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: N A Wilkins
         c/o P.O. Box 707
         Grand Cayman KY1-1107
         Telephone: 945-4777
         Fax: 945-4799


C60 EUROPEAN: Proofs of Claim Must be Filed by June 5
-----------------------------------------------------
C60 European Long Short Master Fund Ltd. creditors are given
until June 5, 2007, to prove their claims to David A.K. Walker
and Lawrence Edwards, the company's liquidators, or be excluded
from receiving any distribution or payment.

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

C60 European's shareholder agreed on March 13, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

       Lawrence Edwards
       Attention: Miguel Brown
       P.O. Box 258
       Grand Cayman KY1-1104
       Cayman Islands
       Telephone: (345) 914 8665
       Fax: (345) 945 4237


C60 EUROPEAN LONG: Proofs of Claim Filing Is Until June 5
---------------------------------------------------------
C60 European Long Short Fund Ltd. creditors are given until
June 5, 2007, to prove their claims to David A.K. Walker and
Lawrence Edwards, the company's liquidators, or be excluded from
receiving any distribution or payment.

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

C60 European's shareholder agreed on March 13, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

       Lawrence Edwards
       Attention: Miguel Brown
       P.O. Box 258
       Grand Cayman KY1-1104
       Cayman Islands
       Telephone: (345) 914 8665
       Fax: (345) 945 4237


HDH ADVISORS: Sets Final Shareholders Meeting for June 14
---------------------------------------------------------
HDH Advisors (Japan) Ltd. will hold its final shareholders
meeting on June 14, 2007, at:

         #38-01, Raffles City Tower
         250 North Bridge Road
         Singapore 179101

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

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

The liquidator can be reached at:

         Huy Hoang
         Attention: Alan G. de Saram
         Charles Adams, Ritchie & Duckworth
         P.O. Box 709
         Zephyr House
         Mary Street, George Town
         Grand Cayman KY1-1107
         Cayman Islands
         Tel: 949-4544
         Fax: 949-8460


HGTI HOLDINGS: Proofs of Claim Filing Deadline Is June 14
---------------------------------------------------------
HGTI Holdings Ltd.'s creditors are given until June 14, 2007, to
prove their claims to George C. Barry, 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.

HGTI Holdings' shareholders agreed to place the company into
voluntary liquidation under The Companies Law (2004 Revision) of
the Cayman Islands.

The liquidator can be reached at:

       George C. Barry
       c/o P.O. Box 1043
       Grand Cayman KY1-1102
       Cayman Islands


JUPITER CAPITAL: Will Hold Final Shareholders Meeting on June 14
----------------------------------------------------------------
Jupiter Capital Holdings will hold its final shareholders
meeting on June 14, 2007, at 10:00 a.m., at:

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

These matters will be taken during the meeting:

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

   2) authorizing the liquidator to retain the company's
      records for a period of 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:

         Ellen J. Christian
         c/o BNP Paribas Bank & Trust Cayman Limited
         P.O. Box 10632
         3rd Floor Royal Bank House
         Shedden Road, George Town
         Grand Cayman KY1-1006
         Cayman Islands
         Telephone: 345 945 9208
         Fax: 345 945 9210


NEMO INTERNATIONAL: Proofs of Claim Filing Ends on June 5
---------------------------------------------------------
Nemo International creditors are given until June 5, 2007, to
prove their claims to Rogerio Ziviani and Bernardo Szpigel, the
company's liquidators, or be excluded from receiving any
distribution or payment.

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

Nemo International's shareholder agreed on April 26, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

          Rogerio Ziviani
          Bernardo Szpigel
          Attention: Martina de Lima
          c/o Ogier, Queensgate House
          South Church Street
          P.O. Box 1234
          Grand Cayman KY1-1108
          Cayman Islands
          Telephone: (345) 949 9876
          Fax: (345) 949 1986


OD CORP: Sets Final Shareholders Meeting for June 14
----------------------------------------------------
OD Corp. will hold its final shareholders meeting on
June 14, 2007, at 10:30 a.m., at:

         P.O. Box 1109
         George Town, Grand Cayman
         Cayman Islands

These matters will be taken during the meeting:

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

   2) authorizing the liquidators 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 liquidators can be reached at:

          Cereita Lawrence
          Sylvia Lewis
          P.O. Box 1109
          Grand Cayman KY1-1102
          Cayman Islands
          Telephone: 345-949-7755
          Fax: 949-7634


OPINIA (CAYMAN): Proofs of Claim Must be Filed by June 6
--------------------------------------------------------
Opinia (Cayman) Ltd. creditors are given until June 6, 2007, to
prove their claims to Luiz Francisco Tenorio Perron, 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.

Opinia (Cayman)'s shareholders agreed to place the company into
voluntary liquidation under The Companies Law (2004 Revision) of
the Cayman Islands.

The liquidator can be reached at:

          Luiz Francisco Tenorio Perron
          c/o Maples and Calder
          P.O. Box 309
          Ugland House
          South Church Street, George Town
          Grand Cayman KY1-1104
          Cayman Islands


PACTUAL CORPORATE: Proofs of Claim Filing Ends on June 5
--------------------------------------------------------
Pactual Corporate Debt High Yield Fund, Ltd. creditors are given
until June 5, 2007, to prove their claims to Carolina Tepedino
de Lima Costa and Iuri Rapoport, the company's liquidators, or
be excluded from receiving any distribution or payment.

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

Pactual Corporate's shareholder agreed on March 26, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

          Carolina Tepedino de Lima Costa
          Iuri Rapoport       
          Attention: Giorgio Subiotto
          c/o Ogier
          P.O. Box 1234
          Grand Cayman KY1-1108
          Cayman Islands
          Telephone: (345) 949 9876
          Fax: (345) 949 1986


SBL SUNFLOWER: Will Hold Final Shareholders Meeting on June 14
--------------------------------------------------------------
SBL Sunflower Holdings will hold its final shareholders meeting
on June 14, 2007, at 10:00 a.m., at:

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

These matters will be taken during the meeting:

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

   2) authorizing the liquidator to retain the company's
      records for a period of 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:

          Ellen J. Christian
          c/o BNP Paribas Bank & Trust Cayman Limited
          P.O. Box 10632
          3rd Floor Royal Bank House
          Shedden Road, George Town
          Grand Cayman KY1-1006
          Cayman Islands
          Telephone: 345 945 9208
          Fax: 345 945 9210


STARTS FUNDING: Sets Final Shareholders Meeting for June 14
-----------------------------------------------------------
Starts Funding Corp. will hold its final shareholders meeting on
June 14, 2007, at 10:00 a.m., at:

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

These matters will be taken during the meeting:

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

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

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

The liquidator can be reached at:

          Ellen J. Christian
          c/o BNP Paribas Bank & Trust Cayman Limited
          P.O. Box 10632
          3rd Floor Royal Bank House
          Shedden Road, George Town
          Grand Cayman KY1-1006
          Cayman Islands
          Telephone: 345 945 9208
          Fax: 345 945 9210


STRATA PLAN: Proofs of Claim Must be Filed by June 5
----------------------------------------------------
Strata Plan No.6 creditors are given until June 5, 2007, to
prove their claims to Lawrence Edwards, 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.

Strata Plan's shareholders agreed on April 20, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

          Lawrence Edwards
          Attention: Jyoti Choi
          P.O. Box 258
          Grand Cayman KY1-1104
          Cayman Islands
          Telephone: (345) 914 8657
          Fax: (345) 945 4237


UNIVEST CONVERTIBLE: Proofs of Claim Filing Is Until June 6
-----------------------------------------------------------
Univest Convertible Arbitrage Fund Ltd. creditors are given
until June 6, 2007, to prove their claims to K.D. Blake, 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.

Univest Convertible's shareholders agreed on May 8, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

          K.D. Blake
          Attention: Gundega Tamane
          P.O. Box 493
          Grand Cayman KY1-1106
          Cayman Islands
          Telephone: 345-914-4309
          Fax: 345-949-7164


UNIVEST DIVERSIFIED: Proofs of Claim Must be Filed by June 6
------------------------------------------------------------
Univest Diversified Fund II Ltd. creditors are given until
June 6, 2007, to prove their claims to K.D. Blake, 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.

Univest Diversified's shareholder agreed on May 5, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

          K.D. Blake
          Attention: Gundega Tamane
          P.O. Box 493
          Grand Cayman KY1-1106
          Cayman Islands
          Telephone: 345-914-4309
          Fax: 345-949-7164


UNIVEST HIGH: Proofs of Claim Filing Is Until June 6
----------------------------------------------------
Univest High Yield Fund Ltd. creditors are given until
June 6, 2007, to prove their claims to K.D. Blake, 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.

Univest High's shareholders agreed on May 8, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidator can be reached at:

          K.D. Blake
          Attention: Gundega Tamane
          P.O. Box 493
          Grand Cayman KY1-1106
          Cayman Islands
          Telephone: 345-914-4309
          Fax: 345-949-7164




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


CINEMARK INC: Parent IPO Plan Cues S&P's Positive Watch
-------------------------------------------------------
Standard & Poor's Ratings Services placed its issue ratings on
Cinemark Inc. and subsidiary Cinemark USA Inc. on CreditWatch
with positive implications.

The rating action is based on the plans of parent company Plano,
Texas-based Cinemark Holdings Inc. to reduce debt from a portion
of the proceeds from its IPO.  
     
At the same time, we assigned a 'B' corporate credit rating to
Cinemark Holdings Inc. and placed it on CreditWatch with
positive implications too.  In March 2007, Cinemark repurchased
substantially all of its 9% senior subordinated notes with
proceeds from the IPO of National CineMedia Inc. and cash on
hand and plans to use a significant amount of the approximately
US$250 million in net proceeds from Cinemark Holdings Inc.'s IPO
to reduce debt.  The company had an estimated US$2.8 billion in
debt including capitalized operating lease obligations as of
March 31, 2007.  Lease-adjusted leverage pro forma for the
acquisition of Century Theatres was approximately 6x at
March 31, 2007.  Cinemark Holdings Inc. intends to pay annual
dividends as a publicly traded company.  
      
"If the company significantly reduces leverage with the proceeds
from the transaction while maintaining good discretionary cash
flow," said Standard & Poor's credit analyst Tulip Lim, "we may
raise the rating."

Cinemark, Inc. -- http://www.cinemark.com/-- (NYSE:CNK) and its  
subsidiaries develops stadium seating multiplex theatres.  
During the year ended December 31, 2006, the company opened 21
theatres with a total of 232 screens and on Oct. 5, 2006, the
company completed its acquisition of Century Theatres, adding an
additional 77 theatres with 1,017 screens.

On Dec. 31, 2006, the company's aggregate screen count was
4,488, with screens in the United States, Canada, Mexico,
Argentina, Brazil, Chile, Ecuador, Peru, Honduras, El Salvador,
Nicaragua, Costa Rica, Panama and Colombia.  As of
Dec. 31, 2006, the company had signed commitments to open 17 new
theatres with 227 screens during 2007.  The company also had
signed commitments to open 11 new theatres with 155 screens
subsequent to 2007.




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


FLOWSERVE CORP: Shareholders Approve Two Incentive Plans
--------------------------------------------------------
Flowserve Corp. shareholders, in its annual meeting of
shareholders in Irving, Texas, approved the company's 2007
Annual Incentive Plan as well as the 2007 Long-Term Incentive
Plan at the meeting.  Both are performance-based management
incentive plans.

In addition, shareholders re-elected current Board members
Christopher A. Bartlett and William C. Rusnack, each to serve a
new term that will end at the 2010 annual meeting of
shareholders.

Rick J. Mills was also elected as a new member of the Board of
Directors to a term that will end at the 2010 annual meeting.  
Mr. Mills is currently a Vice President of Cummins Inc., a
manufacturer of large diesel engines and President of the
Components Group at Cummins Inc.  He was Vice President and
President - Filtration Business from 2000 to 2005 and held other
key management positions from 1970 to 2000.  Mr. Mills is also a
director and member of the Audit Committee and Nominating and
Governance Committee of Rohm and Haas, a global company
producing specialty polymers and biologically active compounds.

Headquartered in Irving, Texas, Flowserve Corp. (NYSE: FLS) --
http://www.flowserve.com/-- provides fluid motion and control  
products and services.  Operating in 56 countries, the company
produces engineered and industrial pumps, seals and valves as
well as a range of related flow management services.  In Latin
America, Flowserve operates in 36 countries such as the
Dominican Republic, Guatemala, Guyana and Belize.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 13, 2007, Fitch Ratings initiated coverage of Flowserve
Corp. and assigned these ratings:

   -- Issuer Default Rating (IDR) 'BB'; and
   -- Senior secured bank facilities 'BB'.

Fitch said the rating outlook is stable.


JETBLUE AIRWAYS: Moody's Cuts Senior Unsecured Rating to Caa2
-------------------------------------------------------------
Moody's Investors Service downgraded the ratings of JetBlue
Airways Corporation debt and selected classes of JetBlue's
Enhanced Equipment Trust Certificates, including the corporate
family and probability of default ratings to B3, and the senior
unsecured rating to Caa2 (LGD-5, 89%).

The Class A Certificates of JetBlue's EETC's supported by
policies issued by Aaa rated monoline insurance companies are
affirmed at Aaa.  The outlook remains negative.

JetBlue's ratings were downgraded because of the continued high
level of financial leverage following several years of rapid,
largely debt-financed growth of its aircraft fleet, and
continued weak financial results at JetBlue during a relatively
good operating environment for the airlines.  Despite a series
of management initiatives over the last year to slow fleet
growth and increase revenue yield, JetBlue recorded a net loss
for the second consecutive fiscal year.  Debt to EBITDA of 8.7x
and EBIT to Interest Expense of 0.9x for the twelve months
ending March 31, 2007 (using Moody's standard adjustments) are
relatively weak, even at the B3 corporate family rating level.

Moody's notes that JetBlue continues to have a meaningful cost
advantage compared with most other airlines. Nonetheless, the
legacy carriers have lowered costs considerably allowing them to
offer competitive fares in many markets.  The expectation of
rising operating costs at JetBlue creates some challenges for
JetBlue to meaningfully grow its profits and cash flow while
operating with its low-fare business model.  In addition, costs
could be pressured up further because of the added system and
crew scheduling complexity from opening new markets and managing
a new aircraft type (the Embraer 190, a regional jet).  Moody's
expects the company's cash and the cash flow from operations
should be adequate to cover near term cash needs, provided
JetBlue continues to benefit from committed financing for its
aircraft deliveries.

Despite its challenges, JetBlue's business model provides a
number of competitive advantages, including a good product, with
a fleet of aircraft among the newest in the industry, and
employee productivity that is among the highest of all airlines.
Management actions, including a slowdown of capacity growth as
well as enhanced revenue management and flow management
practices, have increased revenue and smoothed load factors to
more manageable levels as well as slowed the rate of debt
increase.  In addition, management ranks have been broadened
with seasoned airline managers accustomed to operating a larger
company with increasing operating complexities.  Nonetheless,
the airline could be challenged to return to solid
profitability, particularly if passenger demand growth slows or
yields fall.

EETC certificates supported by insurance policies issued by Aaa
rated monoline insurance companies were affirmed at Aaa (Classes
G-1 and Class G-2 for both of the JetBlue Pass Through Trust
Certificates, Series 2004-1 and 2004-2, and the Class G-1 of the
JetBlue Spare Parts Pass Through Trust Certificates, Series
2006-1).

The negative outlook reflects uncertainty regarding whether
JetBlue has taken sufficient actions soon enough to generate
sustained profits and preserve liquidity.  The outlook could be
stabilized following measurable operating improvements which
would sustain EBIT Margin greater than 10%, with EBIT to
interest expense greater than 1.2x (using Moody's standard
adjustments.  Downward pressure on the ratings would likely
occur if EBIT to interest expense falls further than its current
0.9x level or if retained cash flow to debt falls below 5%
(using Moody's standard adjustments), the company is unable to
generate a net profit, or if cash falls below US$500 million.

Downgrades:

* JetBlue Airways Corp.

   -- Probability of Default Rating, Downgraded to B3 from B2

   -- Corporate Family Rating, Downgraded to B3 from B2

   -- Senior Secured Enhanced Equipment Trust, Downgraded to B1
      from Ba3

   -- Senior Unsecured Conv./Exch. Bond/Debenture, Downgraded to
      a range of 89 - LGD5 to Caa2 from a range of 88 - LGD5 to
      Caa1

* New York City Industrial Development Agcy, NY

   -- Senior Unsecured Revenue Bonds, Downgraded to a range of
      89 - LGD5 to Caa2 from a range of 88 - LGD5 to Caa1

Based in Forest Hills, New York, JetBlue Airways Corp.
(Nasdaq:JBLU) -- http://www.jetblue.com/-- provides passenger   
air transportation services primarily in the United States.  As
of Feb. 14, 2006, the Company operated approximately 369 daily
flights serving 34 destinations in 15 states, Puerto Rico, the
Dominican Republic, and the Bahamas.  The Company also provides
in-flight entertainment systems for commercial aircraft,
including live in-seat satellite television, digital satellite
radio, wireless aircraft data link service, and cabin
surveillance systems and Internet services, through its wholly
owned subsidiary, LiveTV, LLC.




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


GEOKINETICS INC: Earns US$6.3 Mil. Net Income in 2007 First Qtr.
----------------------------------------------------------------
Geokinetics Inc. reported US$6.3 million of net income for the
three months ended March 31, 2007, compared to US$2.2 million of
net income for the same period in 2006.

The company's revenue for the first quarter of 2007 rose 129% to
US$111.0 million compared to US$48.5 million for the first
quarter of 2006.  The solid growth in revenue was primarily due
to the impact of the acquisition of Grant Geophysical, Inc. in
September 2006, a solid Canadian winter season, increased demand
for seismic data acquisition services, investments in capital
expenditures increasing capacity and the early realization of
backlog previously scheduled for completion in second quarter
2007.

The company is providing EBITDA to facilitate comparisons with
prior performance and peers.  EBITDA increased 221% to US$18.6
million for the first quarter of 2007, compared to US$5.8
million in the first quarter of 2006.  The improvement in EBITDA
is due to revenue increases, improved pricing and utilization of
crews and equipment as the size of the company's contracts
increased in the seismic data acquisition business, and improved
earnings from seismic data processing and interpretation.  For
the first quarter of 2007, net income to common stockholders was
US$5.1 million, or US$0.75 per common share, on a weighted
average of 8.4 million shares on a fully diluted basis.  For the
first quarter of 2006, net income to common shareholders was
US$2.3 million, or US$0.39 per common share, on a weighted
average of 5.8 million shares on a fully diluted basis.  Share
and per share amounts are fully reflective of the company's one
for ten reverse stock-split, which occurred in November 2006.

Commenting on the first quarter's results, David A. Johnson,
Geokinetics' President and Chief Executive Officer, said "We are
extremely pleased with our first quarter results.  The results
were positively impacted by our strong winter season in Canada,
which typically causes our first quarter to have higher activity
levels, as well as the significant acceleration of one of our
international projects.  In addition, our quarter experienced
significant growth as a result of an aggressive capital
expenditure program.  On a pro-forma basis, we invested US$62.4
million during the nine months ended March 31, 2007,
significantly increasing our equipment capacity and increasing
our recording channel count by 31% to over 82,000 channels.  We
continue to experience strong demand for our services worldwide,
which is reflected in our backlog of approximately US$282.8
million as of March 31, 2007, and we continue to be excited
about the prospects for our business, both domestically and
internationally.  Our first quarter is historically our
strongest quarter due to Canada and the budget cycles of many of
our international customers."

Mr. Johnson continued: "We are very encouraged with the outlook
for our industry, the continuing strength and quality of our
backlog, the larger opportunities that we are capitalizing on as
a result of our strategic acquisitions and the returns on our
investment in new equipment.  We have successfully integrated
Grant and are very pleased with the financial contribution and
technical expertise we received as well as the opportunities
this acquisition has created."

Headquartered in Houston, Texas, Geokinetics Inc. --
http://www.geokineticsinc.com/-- is a global leader of seismic     
acquisition and high-end seismic data processing and
interpretation services to the oil and gas industry.  
Geokinetics provides seismic data acquisition services in North
America, South America, Africa, Asia, Australia and the Middle
East.  Geokinetics operates in some of the most challenging
locations in the world from the Arctic to mountainous jungles to
the transition zone environments.  The company has operations in
Brazil, Colombia, Ecuador, Peru and Venezuela.

                        *     *     *

Moody's Investors Service assigned on Dec. 6, 2006, a B3
corporate family rating and probability of default rating to
Geokinetics Inc., and a SGL-3 speculative liquidity rating.
Moody's also assigned a B3, LGD 4 (53%) rating to Geokinetics'
proposed offering of USUS$100 million second priority senior
secured floating rate notes due 2012.  The outlook is stable.
Proceeds from the notes will be used to retire an existing
USUS$100 million senior loan.

Standard & Poor's Ratings Services also assigned its 'B-'
corporate credit rating to Geokinetics Inc. At the same time,
Standard & Poor's assigned its 'CCC+' rating and '3' recovery
rating to Geokinetics' USUS$100 million in second lien floating
rate notes.


PETROECUADOR: Accepts Shell's Technical Offer for Esmeraldas
------------------------------------------------------------
Ecuadorian state-owned oil firm Petroecuador President Carlos
Pareja Yannuzzelli said in a statement that the company has
accepted Royal Dutch Shell's technical offer on the
modernization of the Esmeraldas plant, and contract signing is
expected next week.

As reported in the Troubled Company Reporter-Latin America on
May 17, 2007, Mr. Yannuzzelli said that Petroecuador expected an
offer from the Royal Dutch to modernize Esmeraldas.  The plant
is currently working below 50% of its normal levels.  It can
refine up to 95,000 barrels of oil daily.  However, a series of
scheduled repairs and brief fires reduced its refining capacity
to around 34,000 barrels per day.  Ecuador repeatedly postponed
the bidding for upgrade works in Esmeraldas.  

Mr. Yannuzzelli told Business News Americas that Royal Dutch
will submit an economic bid to Petroecuador in the coming days.

Petroecuador expected that the two-year Esmeraldas
rehabilitation project would cost US$127 million, 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.


* ECUADOR: Gov't Creates Panel to Probe Debts' Legitimacy
---------------------------------------------------------
The Ecuadorian government has created a panel that would probe
the legitimacy of the nation's debts, a move that revives
investors concern over a default.

President Rafael Correa has declared months ago that there is a
possibility his country won't pay debts that will be deemed not
legitimate.  In February, default concerns were high when
Ecuador declared it would use a 30-day grace period before
paying interest due on its bonds.  That fear was allayed when
the government sent payments a day after the announcement.

Now that Finance Minister Ricardo Patino has announced that a
formal body of inquiry has been created, default concerns were
again revived.  Ecuador has US$10 billion of foreign debts.

"The debt commission announcement means the reemergence of the
default noise," Alberto Bernal, an emerging-markets analyst in
New York at Bear, Stearns & Co., told Bloomberg News in an
interview.  "That is the reason why the bonds are down today.  
We may see more pressure in the days ahead."

As a result of the government's announcement, the yield on
Ecuador's 9-3/8% bond maturing 2015 surged 23 basis points, or
0.23 percentage point, to 10.31%, the highest since May 11,
Bloomberg says, quoting JPMorgan Chase & Co.  The bond's price,
which moves inversely to the yield, tumbled 1.25 cents 94.

                        *     *     *

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

In addition, these ratings were downgraded:

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

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

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

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




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


ALCATEL-LUCENT: Inks Pact with Brasil Telecom to Upgrade Network
----------------------------------------------------------------
Alcatel-Lucent has signed a contract with Brasil Telecom
GlobeNet, who owns and operates GlobeNet -- the lowest latency
submarine network serving the Americas -- to upgrade the
existing 22,000 km system linking the United States with Latin
America.  A private ceremony was held in Baltimore, MD, at
SubOptic 2007, with the representatives of Brasil Telecom
GlobeNet and Alcatel-Lucent.

Alcatel-Lucent will upgrade the submarine section, along with
the respective landing points, linking Brazil (Rio de Janeiro
and Fortaleza), Venezuela (Maiquetia), Bermuda (St.David's), and
USA (Boca Raton, FL and Tuckerton, NJ).  In Rio de Janeiro, the
submarine network integrates with the terrestrial optical
infrastructure of GlobeNet's parent company, Brasil Telecom.  
When completed in the first quarter of 2008, the project will
almost double the existing capacity over the entire network.

GlobeNet's businesses and consumers will benefit from enhanced
connectivity and reliability to access new applications and
services.  Leveraging Alcatel-Lucent's state-of-the-art
submarine technology, GlobeNet will be able to further expand
its wholesale service offering to deliver from broadband,
Carrier Ethernet, fixed and mobile IP-based, legacy voice
services to enterprise applications such as hosting, video
conferencing and international private line services.

"We focus on enhancing network capacity and availability for
maximum effectiveness to best serve our customers, while
capitalizing on our existing infrastructure," said Emagnor
Tessinari, Chief Operating Officer of GlobeNet.  "Alcatel-Lucent
continues to be a valued partner to help us further innovate our
global capabilities."

"GlobeNet require more bandwidth to support the new breed of
emerging services, while keeping its network easy to manage,"
said Jean Godeluck, president of Alcatel-Lucent's submarine
network activity.  "Our solutions enable the introduction of
advanced services and applications smoothly to help our
customers' competitive transformation for continued end-user
satisfaction and retention."

The Alcatel-Lucent submarine solution will be based on its 1620
Light Manager, managed by the upgraded Alcatel-Lucent 1350
management suite.  A comprehensive suite of professional
services, including manufacturing, installation and
commissioning, is part of this turnkey project.

                   About Brasil Telecom GlobeNet

Brasil Telecom GlobeNet -- http://www.globenet.net/-- is an  
International carrier's carrier and is headquartered in Boca
Raton, Florida -- USA.  GlobeNet is a wholly-owned
subsidiary of Brasil Telecom.  GlobeNet is the most
technologically advanced fiber-optic submarine cable system
linking the Americas.  The network consists of a dual-ring, SDH
self-healing architecture, spanning 22,000 kilometers.  The
network system is managed through its own redundant Network
Operations Centers located in the USA and Brazil.

Brasil Telecom GlobeNet is a wholly owned subsidiary of Brasil
Telecom, headquartered in Brasilia, D.F., Brazil. Brasil
Telecom is a leader in converged fixed-mobile solutions as well
as a full-service telecommunications operator which has a rich
voice, data, Internet, and managed services product portfolio
for residential, enterprise, commercial, and government
customers.

                       About Alcatel-Lucent

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

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

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

                        *     *     *

As reported on April 13, Fitch Ratings affirmed Alcatel-Lucent's
ratings at Issuer Default 'BB' with a Stable Outlook, senior
unsecured 'BB' and Short-term 'F2' and simultaneously withdrawn
them.

As of Feb. 7, 2007, Moody's Investor Services puts a Ba2 rating
on Alcatel's Corporate Family and Senior Debt rating.  Lucent
carries Moody's B1 Senior Debt rating and B2 Subordinated debt &
trust preferred rating.

Alcatel-Lucent's Long-Term Corporate Credit rating and Senior
Unsecured Debt carry Standard & Poor's Ratings Services' BB
rating.  Its Short-Term Corporate Credit rating stands at B.




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


FLOWSERVE CORP: Paying 15 Cents Per Share Dividend on July 11
-------------------------------------------------------------
Flowserve Corp.'s Board of Directors has authorized the payment
of a quarterly cash dividend of 15 cents per share on the
company's outstanding shares of common stock.  The dividend is
payable on July 11, 2007, to shareholders of record as of the
close of business on June 27, 2007.

While Flowserve currently intends to pay regular quarterly
dividends for the foreseeable future, any future dividends will
be reviewed individually and declared by the Board at its
discretion, dependent on the board's assessment of the company's
financial condition and business outlook at the applicable time.

Headquartered in Irving, Texas, Flowserve Corp. (NYSE: FLS) --
http://www.flowserve.com/-- provides fluid motion and control  
products and services.  Operating in 56 countries, the company
produces engineered and industrial pumps, seals and valves as
well as a range of related flow management services.  In Latin
America, Flowserve operates in 36 countries such as the
Dominican Republic, Guatemala, Guyana and Belize.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 13, 2007, Fitch Ratings initiated coverage of Flowserve
Corp. and assigned these ratings:

   -- Issuer Default Rating (IDR) 'BB'; and
   -- Senior secured bank facilities 'BB'.

Fitch said the rating outlook is stable.


* GUATEMALA: Mario Gordillo Says Railroad Dev't Claim Baseless
--------------------------------------------------------------
Guatemala's attorney general Mario Gordillo told Business News
Americas that the lawsuit filed by Railroad Development
Corporation's against the government for alleged indirect
expropriation of the assets of the firm's rail unit Ferrovias de
Guatemala is groundless.

As reported in the Troubled Company Reporter-Latin America on
March 21, 2007, Railroad Development said that it filed a notice
of intent for legal proceedings against the Guatemalan
government on behalf of Ferrovias de Guatemala.  Railroad
Development was seeking US$65 million in damages.  About US$15
million of the amount is for investments already made, while
US$50 million is for projected returns from its operation.  
Railroad Development claimed that the "government's decision in
August 2006 to deem the company's 50-year operation and
maintenance contract as damaging amounted to an indirect
expropriation of the company's property."  Railroad Development
said the government's actions caused increased losses to
Ferrovias de Guatemala due to:

          -- inability to obtain credit,

          -- reluctance of freight transportation customers to
             do business with a private entity under attack by
             the government of Guatemala, and

          -- inability to generate lease revenue from railway-
             related businesses.

Reports say that upon the filing of the notice of intent,
Railroad Development and the government had three months to
reach an accord, after which time the case would go to the
International Center for Settlement of Investment Disputes.

Mr. Gordillo told BNamericas that the government didn't see the
contract as damaging, "as such a claim was simply issued as a
unilateral statement, and not officially determined in a
national court."  The "indirect expropriation" never happened.

"From my point of view, the case is being discussed [in
Guatemala]," Mr. Gordillo commented to BNamericas.  "We haven't
declared the contract 'damaging,' and we are thus not dealing
with indirect expropriation, because the contract is still
valid."

Railroad Development Chairperson Henry Posner III told
BNamericas that the declaration from the government caused
substantial loss of revenue for the company through its
Ferrovias de Guatemala operations.  He explained, "Our customers
are not willing to make commitments to a company that's on the
government's target list, and our ability to take credit has
disappeared.  People are now much more cautious about doing
business with us."

According to reports, Mr. Gordillo thinks that the case must
first be taken to national courts to decide the level of damages
caused by Ferrovias de Guatemala, which allegedly failed comply
with its own obligations to invest in the railway.  

Railroad Development can do "whatever it wants internationally,
but nationally they must present themselves for the case, which
they have failed to do," Mr. Gordillo told BNamericas.

                        *     *     *

Fitch Ratings assigned these ratings on Guatemala:

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

Fitch also rated Guatemala's senior unsecured bonds:

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




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


CHIQUITA BRANDS: Will Launch Banana Plantation in Honduras
----------------------------------------------------------
Chiquita Brands International will launch a new plantation of
organic bananas in Honduras, Andre van der Wiel at Fresh Plaza
reports, citing Associazione Italiana Agricoltura Biologica, an
Italian association for organic agriculture.

Honduran Minister of Agriculture Mario Ramon Lopez told Fresh
Plaza's Mr. van der Wiel that the first 100 hectares of the
project could be planted by year-end, with an estimated
investment of EUR950,000.

Chiquita Brands is also considering starting plantations in
Angola, according to a report in a Honduran newspaper.

Cincinnati, Ohio- based Chiquita Brands International, Inc.
(NYSE: CQB) -- http://www.chiquita.com/-- operates as an   
international marketer and distributor of bananas and other
fresh produce sold under the Chiquita and other brand names in
over 70 countries including Panama, Philippines, Australia,
Belgium, Germany, among others.  It also distributes and markets
fresh-cut fruit and other branded, value-added fruit products.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
May 16, 2007, Moody's Investors Service changed the rating
outlook for Chiquita Brands International, Inc. to negative from
stable.  

Ratings affirmed:

* Chiquita Brands International, Inc. (parent holding company)

   -- Corporate family rating at B3

   -- Probability of default rating at B3

   -- US$250 million 7.5% senior unsecured notes due 2014 at
      Caa2 (LGD5, 89%)

   -- US$225 million 8.875% senior unsecured notes due 2015 at
      Caa2 (LGD5, 89%)

* Chiquita Brands LLC (operating subsidiary):

   -- US$200 million senior secured revolving credit agreement
      at B1 (LGD2, 26%)

   -- US$24.3 million senior secured term loan B at B1 (LGD2,
      26%)

   -- US$368.4 million senior secured term loan C at B1 (LGD2,
      26%).




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


DYOLL INSURANCE: Trustees May Fail to Resolve Issues on Payout
--------------------------------------------------------------
Trustees of the Coffee Farmers Insurance Fund may not be able to
resolve issues preventing the payment of the proceeds to coffee
farmers owed by Dyoll Insurance by the May 31 deadline, John
Myers Jr. at the Farmers Weekly reports.

As reported in the Troubled Company Reporter-Latin America on
May 14, 2007, Jamaican Agriculture Minister Roger Clarke said
that it has been discovered that some of the coffee farmers who
suffered crop damage during Hurricane Ivan were overpaid, which
could affect the collection for the Dyoll Insurance pay-out.  
The Coffee Insurance Scheme Trustees reportedly repaid the US$60
million that the Jamaican government disbursed to coffee farmers
in 2006, as compensation from Dyoll Insurance.  It has not be
determined how many farmers were overpaid and how much was
overpaid.  Minister Clarke said that the money would have to be
repaid.

Mr. Simon, the Blue Mountain coffee farmers' representative,
told the Farmers Weekly's Mr. Myers that other than issues of
overpayments, the trustees failed to make the payments due to
stale-dated cheques and duplication with the list of farmers.

"The Coffee (Industry) Board has recommended an IT specialized
company to clean the list that they used to make the interim
payments that the government advanced last year October ...
(but) the trustees are currently having a serious problem with
them because the trustees, as it appears to be, cannot afford
them," Mr. Simon commented to the Farmers Weekly's Mr. Myers.

The company is charging in excess of US$500,000 to conduct the
job, the Farmers Weekly's Mr. Myers notes, citing Mr. Simon.  
"Right now the whole situation is in limbo, it is very likely
that any deadline at the month end will also be missed," Mr.
Simon said.

A Board of Trustees source confirmed to the Farmers Weekly's Mr.
Myers that the payments would be made by the end of May,
acknowledging the problems being experienced with the firm
chosen to resolve the issues regarding the payout.

"The farmers are very restive, this year's crop is now at risk
and they would have also lost their money in bringing this crop
to perfection if it is not sprayed and the window for spraying
is gone.  We are up a creek without a paddle," Mr. Simon told
Farmers Weekly's Mr. Myers.

Corrections are being made on the list.  At least three
qualified firms were also being invited to make bids to solve
the problems with the list, Farmers Weekly's Mr. Myers 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.


GOODYEAR TIRE: Sells Additional 3.4 Million Shares at US$33 Each
----------------------------------------------------------------
The Goodyear Tire & Rubber Company reported that the
underwriters of its public offering of 22,727,272 shares of its
common stock have exercised in full the over-allotment option
granted to them by the company.

As a result, the company will sell an additional 3,409,091
shares of its common stock at the offering price of US$33.00 per
share.  The offering, including the exercise of the over-
allotment option, is expected to close on May 22, 2007.

Including the exercise of the over-allotment option, the net
proceeds from the offering, after deducting underwriting
discounts and commissions, are expected to be approximately
US$834 million.

Goodyear intends to use the net proceeds from the offering to
redeem approximately $175 million in principal amount of its
outstanding 8.625% senior notes due in 2011 and approximately
US$140 million in principal amount of its outstanding 9.00%
senior notes due in 2015.  The company expects to use the
remaining net proceeds of the offering for general corporate
purposes, which may include, among other things, investments in
growth initiatives within the company's core tire businesses and
the repayment of additional debt.

Deutsche Bank Securities, Citi and Goldman, Sachs & Co. served
as joint book-running managers of the offering.

A shelf registration statement was filed with the U.S.
Securities and Exchange Commission and became automatically
effective upon filing on May 9, 2007.  The offering of the
common stock may be made only by means of a prospectus
supplement and the accompanying prospectus, copies of which may
be obtained from:

          Deutsche Bank Securities Prospectus Department
          100 Plaza One
          Jersey City, NJ 07311
          Tel: (800) 503-4611

          Citigroup Global Markets Inc.
          Brooklyn Army Terminal
          140 58th Street, 8th Floor
          Brooklyn, NY 11220
          Tel: (718) 765-6732

          Goldman, Sachs & Co.
          Prospectus Department
          85 Broad St.
          New York, NY 10004
          Tel: (212) 902-1171
          Fax: (212) 902-9316

          Goodyear's Investor Relations Department
          1144 E. Market St.
          Akron, OH 44316
          Tel: (330) 796-3751

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-Latin America on
May 11, 2007, Moody's Investors Service upgraded Goodyear Tire &
Rubber Company's Corporate Family Rating to Ba3 from B1 and
maintained a positive rating outlook.  Moody's also affirmed
Goodyear's liquidity rating of SGL-2.  The actions follow an
announcement by Goodyear of plans to raise approximately US$750
million of new equity capital, which marks important further
progress in the company's plans to strengthen its balance sheet.




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


BEARINGPOINT INC: Jill Kanin-Lovers Joins Board of Directors
------------------------------------------------------------
BearingPoint, Inc., has appointed Jill Kanin-Lovers to its Board
of Directors, effective May 10, 2007.

Ms. Kanin-Lovers has more than 30 years of human resources and
management experience.  From 1992 to 2004, she held senior human
resources leadership positions at Avon Products, Inc., IBM and
the American Express Company.  She spent the first 17 years of
her career with Towers Perrin, a leading global human resources
consulting firm, where she held a number of management and
leadership positions.

"In the consulting industry, nothing is more important than
attracting and retaining the best talent," said Rod McGeary,
BearingPoint's Chairman of the Board.  "Jill's extensive human
resources expertise will help BearingPoint continue to attract
the best and brightest in our industry ensuring that we can
continue to exceed the expectations of our clients."

Named one of the Top 50 HR Leaders in the world by HR World
magazine, Ms. Kanin-Lovers has worked with senior management to
drive global human resources strategies and organizational
transformation at several of the world's most highly regarded
companies.  That unique experience will be invaluable as
BearingPoint continues its drive to build a world-class human
resources capability to serve its 17,000 employees.

Ms. Kanin-Lovers now serves on the Board of Directors for First
Advantage, a leading risk mitigation and business solutions
provider; for Dot Foods, the nation's largest food
redistributor; and for Heidrick & Struggles, a leading global
search firm.  She received her bachelor's degree from the State
University of New York at Albany and her master's in Business
Administration, specializing in Personnel and Industrial
Relations, from the University of Pennsylvania's Wharton School
of Business.

Headquartered in McLean, Virginia, BearingPoint, Inc., (NYSE:
BE) -- http://www.BearingPoint.com/-- provides of management  
and technology consulting services to Global 2000 companies and
government organizations in 60 countries worldwide.  The firm
has approximately 17,500 employees, and major practice areas
focusing on the Public Services, Financial Services and
Commercial Services markets.

BearingPoint has global locations including in Indonesia,
Australia, Austria, China, India, Japan, Mexico, Portugal,
Singapore and Thailand.

                        *     *     *

Moody's Investors Service's rated BearingPoint Inc.'s 2.5%
Series A Convertible Subordinated Debentures due 2024 at B3.


BENCHMARK ELECTRONICS: Pemstar Buy Cues S&P to Remove Watch
-----------------------------------------------------------
Standard & Poor's Ratings Services removed its ratings on
Angleton, Texas-based Benchmark Electronics Inc. from
CreditWatch, where they were placed with positive implications
on Nov. 1, 2006.  The 'BB-' corporate credit rating is affirmed;
the outlook is stable.
      
"The rating actions follow the company's stock-based acquisition
of Pemstar, Inc. and a review of 2006 results," said Standard &
Poor's credit analyst Lucy Patricola.  While Pemstar adds
complementary customers and programs to Benchmark's portfolio,
with a minimum of redundant facilities, Benchmark recently
experienced share erosion at its key customer, Sun Microsystems;
end-market softness in some of its largest sectors; and program
ramp delays.  
     
The ratings reflect Benchmark's mid-tier industry position,
significant customer concentration, and challenges posed by
volatile computing and communications end-market demand.  These
concerns partly are offset by consistent operating performance
and a strong financial profile for the rating.  Benchmark had no
funded debt outstanding as of March 2007, and lease-related
adjustments are nominal at $25 million.
     
Benchmark provides electronic manufacturing services, primarily
in the high-end computing and communications equipment markets,
although the company has made strides at diversifying its
revenue base organically and through its recent acquisition of
Pemstar.  Still, following the acquisition, computing and
telecommunications remain about 70% of total sales.  Medical
devices, industrial controls, and instrumentation accounted for
the balance.  At $2.9 billion in 2006 annual revenue, the
company is the smallest in the rated EMS sector.

                 About Benchmark Electronics

Based in Angleton, Texas, Benchmark Electronics Inc. (NYSE: BHE)
-- http://www.bench.com/-- manufactures electronics and  
provides services to original equipment manufacturers of
computers and related products for business enterprises, medical
devices, industrial control equipment, testing and
instrumentation products, and telecommunications equipment.  The
company's global operations include facilities in The
Netherlands, Romania, Ireland, Brazil, Mexico, Thailand,
Singapore, and China.


CHURCH & DWIGHT: Earns US$45 Mln in First Quarter Ended March 31
----------------------------------------------------------------
Church & Dwight Co. Inc. reported net income for the quarter
ended March 30, 2007 of US$45.1 million, an increase over last
year's US$39.9 million.  Net sales were US$514.3 million in the
first quarter, a US$71.9 million or 16% increase over last
year's US$442.4 million.  

First quarter sales include the results of the Orange Glo
International Inc. laundry additive and household cleaners
business, which was acquired in August 2006.  Adjusting
primarily for revenue related to acquisitions and the net effect
of foreign currency changes, organic sales declined for the
quarter by about 1% compared to the first quarter of 2006.  In
last year's first quarter, the company experienced exceptionally
strong sales of liquid laundry detergent as a result of
unusually high levels of customer merchandising activity prior
to price increases that took effect in the second quarter of
2006.  In addition, the year-over-year comparison of organic net
sales was also unfavorably influenced by higher slotting costs
in support of new product launches in the first quarter of 2007.

As of March 31, 2007, the company's balance sheet reflected
total assets of US$2.3 billion and total liabilities of US$1.4
billion, resulting in a total stockholders' equity of US$921.8
million.

                 Free Cash Flow and Net Debt

At quarter-end, the company had total outstanding debt of
US$906.9 million and cash of US$107.7 million for a net debt
position of US$799.2 million.  This compares to total debt of
US$933.3 million and cash of US$110.5 million for a net debt
position at Dec. 31, 2006 of US$822.8 million.  The company
generated about US$18 million in free cash flow during the first
quarter of 2007.  During the first quarter of 2006, the company
generated about US$3 million of free cash flow.  Free cash flow
is defined as cash provided by operating activities less capital
expenditures.

Full-text copies of the company's first quarter 2007 report are
available for free at http://ResearchArchives.com/t/s?1f52

James R. Craigie, chairman and chief executive officer,
commented, "We are very pleased with our execution of the
business plan so far this year, starting with a solid first
quarter.  As we move through the second quarter, we are
continuing our major new product launches and other initiatives,
which will require a significant increase in marketing spending.
We expect full year 2007 organic sales to be in line with our 3
to 4% long-term business model."

                    New Product Activity

On the new product front, Mr. Craigie commented, "We expect 2007
to be another exciting year for Church & Dwight as we drive
organic growth through the introduction of new and improved
products.  The second quarter will be marked by record marketing
spending to support our brands and new product launches."

                          Outlook

With regard to the full year, Mr. Craigie said, "Because of our
confidence in the business and our new product launches, we
remain comfortable with our previously announced earnings per
share goal of US$2.34 to US$2.36 which is equivalent to a 13-14%
increase over 2006 results.

"Organic sales growth is expected to be very strong in the
second quarter.  Marketing expense will be at record levels as a
result of our consumer promotion activity, new television
campaigns, and our planned new product launches.  Consequently,
we are expecting earnings per share in the range of US$0.57 to
US$0.59 for the second quarter.  In addition, we expect second
half earnings to be more evenly distributed in the third and
fourth quarters than in prior years."

As previously reported, at its May 2 Board meeting, the company
declared a quarterly dividend of US$0.07 cents per share.  The
dividend will be payable June 1, 2007 to stockholders of record
at the close of business on May 14, 2007.  This is the company's
425th regular quarterly dividend.

                    About Church & Dwight

Headquartered in Princeton, New Jersey, Church & Dwight Co. Inc.
-- http://www.churchdwight.com/-- manufactures and sells sodium  
bicarbonate products popularly known as baking soda.  The
company also makes laundry detergent, bathroom cleaners, cat
litter, carpet deodorizer, air fresheners, toothpaste, and
antiperspirants.

The company's international business includes operations in
Australia, Canada, Mexico, the United Kingdom, France and Spain.

Church & Dwight's US$100 million convertible senior debentures
carry Moody's Investors Service Ba1 rating.  The company's
US$250 million senior subordinated notes carry Moody's Ba2
rating.


DIGITAL LIGHTWAVE: Posts US$603,000 Net Loss in First Quarter
-------------------------------------------------------------
Digital Lightwave Inc. reported a net loss of US$603,000 on net
sales of US$2,491,000 for the first quarter ended
March 31, 2007, compared with a net loss of US$4,761,000 on net
sales of US$2,232,000 for the same period last year.

The increase in net sales was primarily a result of the improved
acceptance of the Network Information Computers product due to
new feature enhancements.

Gross profit for the quarter ended March 31, 2007, increased by
approximately US$1 million to approximately US$1.4 million, or
55% of net sales, from US$316,000, or 14% of net sales, for the
quarter ended March 31, 2006.

Total operating expenses for the quarter ended March 31, 2007,
decreased by approximately US$2.5 million to US$1.2 million from
US$3.7 million for the quarter ended March 31, 2006.

Other expense, net for the quarter ended March 31, 2007, was
approximately US$800,000, a decrease of US$580,000 as compared
to other expense, net of approximately US$1.4 million for the
quarter ended March 31, 2006.  The decrease was due to the
interest expense reduction as a result of the conversion of the
Secured Convertible Promissory Note by Optel in January 2007.

At March 31, 2007, the company's balance sheet showed
US$5,424,000 in total assets and US$33,939,000 in total
liabilities, resulting in a US$28,515,000 total stockholders'
deficit.

The company's balance sheet at March 31, 2007, also showed
strained liquidity with US$5,206,000 in total current assets
available to pay US$33,675,000 in total current liabilities.

Full-text copies of the company's consolidated financial
statements for the quarter ended March 31, 2007, are available
for free at http://researcharchives.com/t/s?1f4d

                     Going Concern Doubt

Grant Thornton LLP, in Tampa, Florida, expressed substantial
doubt about Digital Lightwave Inc.'s ability to continue as a
going concern after auditing the company's consolidated
financial statements for the years ended Dec. 31, 2006, and
2005.  The auditing firm reported that the company has incurred
net losses of US$14.5 million in 2006 and US$21.1 million in
2005, and as of Dec. 31, 2006, has a working capital deficit of
US$62.9 million and a stockholders' deficit of US$62.9 million.

                  About Digital Lightwave

Based in Clearwater, Florida, Digital Lightwave Inc. designs,
develops and markets products for installing, maintaining and
monitoring fiber optic circuits and networks.  The company's
product lines include: Network Information Computers, Network
Access Agents, Optical Test Systems, and Optical Wavelength
Managers.  The company's wholly owned subsidiaries are Digital
Lightwave (UK) Limited, Digital Lightwave Asia Pacific Pty,
Ltd., and Digital Lightwave Latino Americana Ltda.  

The company has presence in Australia, Hong Kong, India,
Indonesia, Korea, Malaysia, Singapore, and Thailand in the Asia-
Pacific. It also has facilities in Europe, particularly in
Denmark, France, and Greece, as well as in Mexico in the Latin-
American region.


DURA AUTO: Wants Exclusive Plan-Filing Period Until Sept. 30
------------------------------------------------------------
Dura Automotive Systems Inc. and its debtor-affiliates ask the
U.S. Bankruptcy Court for the District of Delaware to further
extend through and including (i) Sept. 30, 2007, their exclusive
period during which they may file a plan of reorganization, and
(ii) Nov. 30, 2007, during which they may solicit votes to
approve the plan.

Daniel J. DeFranceschi, Esq., at Richards, Layton & Finger,
P.A., in Wilmington, Delaware, says the Debtors have made
significant progress through their Chapter 11 cases, and are now
poised to move forward in a clearly articulated process that
will culminate with their expeditious exit from bankruptcy
protection.

In particular, he avers, the Debtors:

    -- are completing their five-year business plan.  The
       Debtors intend to preview their business plan with their
       creditor constituencies' financial advisors on
       May 22, 2007, and to formally present the business plan
       to their two primary creditor constituencies -- the
       Official Committee of Unsecured Creditors and the Second
       Lien Committee -- on May 31, 2007;

    -- have commenced developing a Chapter 11 plan incorporating
       an equity rights offering, the goal of which is to
       provide the Debtors with acceptable debt leverage upon
       emergence, while satisfying all secured and priority
       creditors in full;

    -- are refining their equity rights offering strategies in
       anticipation of distributing in the near term a proposed
       equity rights offering tern sheet to the Creditors
       Committee;

    -- have commenced implementing their plans to rationalize
       their assets and business lines through divestiture or
       otherwise; and

    -- continue to make great strides on all other operational
       restructuring fronts.  The Debtors are now more than 50%
       complete with their 50-Cubed Plan of consolidating their
       North American manufacturing footprint to low cost
       locations and best-in-cost facilities.

The Debtors' carefully calibrated requests to extend the
Exclusive Periods will free them through the end of September of
the potentially costly and time-consuming distraction of
competing chapter 11 plan proposals, Mr. DeFranceschi tells
Judge Carey.

The Debtors anticipate that, by Sept. 30, they will have
completed the process of developing, negotiating, filing and
soliciting acceptances of what is expected to be a highly
consensual Chapter 11 plan of reorganization.  Accomplishing
that goal will provide the reorganized Company with a stable and
operationally and financially sound platform when it emerges
from Chapter 11, Mr. DeFranceschi avers.

                    About DURA Automotive

Headquartered in Rochester Hills, Michigan, DURA Automotive
Systems, Inc. -- 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 and recreation & specialty vehicle industries.  DURA,
which operates in 63 locations, sells its products to every
major North American, Asian and European automotive original
equipment manufacturer and many leading Tier 1 automotive
suppliers.  It currently operates in 63 locations including
joint venture companies and customer service centers in 14
countries.  

The company has three locations in Asia, namely in China, Japan
and Korea. It has locations in Europe and Latin-America,
particularly in Mexico, Germany and the United Kingdom.

                        *     *     *

Fitch Ratings placed one tranche from one public collateralized
debt obligation and one tranche from private CDO on Rating Watch
Negative following Dura Automotive Corp.'s filing for protection
under Chapter 11.

Standard & Poor's Ratings Services lowered its corporate credit
rating on Dura Automotive Systems Inc. to 'CCC' from 'B-'.  The
rating outlook is negative.

                        *     *     *

The Debtors filed for chapter 11 petition on October 30, 2006
(Bankr. District of 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
USUS$1,993,178,000 in total assets and USUS$1,730,758,000 in
total liabilities.  (Dura Automotive Bankruptcy News, Issue No.
6; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


ENERSYS: S&P Holds All Ratings & Revises Outlook to Stable
----------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on
industrial battery manufacturer EnerSys to stable from negative.  
At the same time, Standard & Poor's affirmed all its ratings on
the company, including its 'BB' corporate credit rating.
      
"The outlook revision reflects the company's demonstrated
progress in gradually returning to credit metrics that are in
line with expectations for the rating, despite the continued
challenging commodity price environment, as well as our
expectation that EnerSys' financial policies, while considered
aggressive, will remain consistent for the rating," said
Standard & Poor's credit analyst Gregoire Buet.
     
EnerSys is challenged by the prices for lead, which represent
about 25% of its costs of goods sold; more so than any other
material.  High lead prices have pressured gross margins.  
Throughout 2005 and 2006, the company succeeded in implementing
price increases to help offset these costs, but lead prices
continue to be on an upward trend, which will require further
pricing action.  Rising volumes, reduction in manufacturing
plant costs, and progress with the integration of acquisitions
should, however, continue to help Enersys achieve growth in
operating earnings, despite gradually eroding margins and weak,
though positive, free cash flow.

EnerSys -- http://www.enersys.com/-- (NYSE: ENS) manufactures  
industrial battery through 21 manufacturing and assembly
facilities worldwide.  Headquartered in Reading, Pennsylvania,
the company is uniquely positioned to provide expertise in
designing, building, installing and maintaining a comprehensive
stored energy solution for industrial applications throughout
the world.  The company's products and services are focused on
two primary markets: Motive Power (North & South America) or
(Europe) and Reserve Power (Worldwide), (Aerospace & Defense) or
(Speciality Batteries).  The company's facilities are located at
China, France, Mexico, Germany, and the United Kingdom, among
others.


EPICOR SOFTWARE: S&P Holds BB- Rating on US$100 Mil. Senior Loan
----------------------------------------------------------------
Standard & Poor's Rating Services affirmed its 'BB-' corporate
credit rating and stable outlook on Irvine, California-based
Epicor Software Corp.
     
At the same time, Standard & Poor's affirmed its 'BB-' bank loan
rating on Epicor's US$100 million senior secured revolving
credit facility and revised the recovery rating to '2' from '3',
reflecting its expectation for substantial (80%-100%) recovery
of principal in the event of a payment default.  Standard &
Poor's also assigned its 'B+' rating to Epicor's recently issued
US$230 million senior unsecured convertible notes.
     
Approximately US$94 million of the estimated US$222 million net
proceeds from the convertible notes offering was used to repay
the remaining balance of Epicor's senior secured term loan.  The
company has indicated that remaining proceeds will be used for
general corporate purposes, including acquisitions or share
repurchases.  While operating lease-adjusted leverage has
increased to nearly 4x following the issuance of the convertible
notes, S&P's ratings affirmation reflects its expectation that a
substantial portion of the excess proceeds will be invested in
the business and drive improvement to Epicor's cash flow and
financial profile.  S&P's 'BB-' rating also incorporates the
expectation that the organic growth trajectory demonstrated over
the past several quarters will continue.

Epicor Software Corp. -- http://www.epicor.com/-- (Nasdaq:  
EPIC) provides integrated enterprise resource planning, customer
relationship management, supply chain management and
professional services automation software solutions to midmarket
companies and divisions of the Global 1000.  Founded in 1984,
Epicor serves over 20,000 customers in more than 140 countries,
providing solutions in over 30 languages.  Epicor is
headquartered in Irvine, California.  The company has offices in
Mexico, Australia, China, Hong Kong, Indonesia, Japan, Denmark,
Germany, Russia, and the United Kingdom, among others.


FRESENIUS AG: Moody's Affirms Ba2 Corporate Family Rating
---------------------------------------------------------
Moody's Investors Service affirmed all ratings of Fresenius AG,
and changed the outlook to positive from stable.  Concurrently,
Moody's has also affirmed the ratings of Fresenius's subsidiary,
Fresenius Medical Care & Co KGaA, and changed the outlook to
positive from stable.

According to Moody's, the rating affirmations for Fresenius and
FME reflect the successful integration of the Helios acquisition
by Fresenius AG and the acquisition of Renal Care Group by FME.

"The positive outlooks for FME and Fresenius reflect the
constant improvements in the operating performance of the two
companies driven by organic growth supported by the favorable
demographic fundamentals for healthcare services and medical
equipment and the progress in de-leveraging of both entities
capital structures.

"While both ratings carry positive outlooks we expect a faster
rating migration for Fresenius than for FME, given the broader
diversification of cash flow sources and a more pronounced
improvement in credit metrics expected for the next twelve
months than for FME," says Christian Hendker, Moody's lead
analyst for Fresenius and FME.

The affirmation of Fresenius's Ba2 Corporate Family Rating
(Ba2 PDR) reflects:

  (1) the group's sizeable scale as a global provider of
      healthcare services and medical products and the recurring
      nature of the revenue base;

  (2) its balanced level of geographical diversification;

  (3) its segmental diversification in the healthcare market
      supported by strong market positions; and

  (4) good financial flexibility.

However, the rating is constrained by:

  (1) still relatively high financial leverage following a
      number of sizeable acquisitions in recent years;

  (2) ongoing acquisition risk and the expectation for
      acquisition-related cash flow constraints over the medium
      term;

  (3) shareholder orientation; and

  (4) exposure to regulatory changes and pricing pressure from
      governments and healthcare organizations worldwide.

The positive outlook for Fresenius AG reflects the benefits of
an improved segmental diversification due to increasing
performance contributions of ProServe and Kabi which are
somewhat reducing the historical dependency on the operating
performance of FME.  Additionally, the group's credit metrics
are approaching historical levels, as reflected by Debt to
EBITDA of 3.7x in the fiscal year ending Dec. 31, 2006.  An
upgrade in Fresenius's ratings could be triggered by a clear
trend of improving CFO to Debt towards the high teens and
reducing Debt to EBITDA below 3.5x.

The affirmation of the Ba2 Corporate Family Rating for FME
(Ba2 Probability of Default or PDR) is supported by:

  (1) FME's absolute scale and a strong market position as a
      leading global provider of dialysis products and private
      dialysis services;

  (2) continued favorable industry growth trends as well as the
      recurring nature of FME's revenues;

  (3) high profitability levels; and

  (4) good financial flexibility.

FME's rating is constrained by:

  (1) its relatively high adjusted financial leverage;

  (2) the potential risks from the company's pure-play focus on
      the dialysis market, albeit mitigated by its position as a
      provider of both products and services;

  (3) the company's exposure to regulatory changes, government
      investigations and pricing pressure from governments and
      healthcare organisations worldwide; and

  (4) regional concentration on the North American market.

The positive outlook for FME incorporates Moody's view of the
stability of the dialysis market and is underpinned by
favourable demographic demand drivers the rating remains
constrained by relatively high financial leverage (Debt to
EBITDA of 3.9x in the fiscal year ending Dec. 31, 2006).  Given
a relatively more concentrated business profile than Fresenius,
FME's metrics would need to show a track record of Debt to
EBITDA below 3.5x and CFO to Debt in the high teens on a
sustained basis to accommodate a rating upgrade.

Moody's notes that the rating levels for Fresenius' Ba2
Corporate Family Rating and the Ba2 Corporate Family Rating of
its key subsidiary FME are not directly linked.  However,
Fresenius' consolidated operating performance and financial
leverage are highly correlated to FME, given the full
consolidation of FME's financial results (Fresenius AG holds a
36% economic interest in FME, but as result of FME's legal
status as a KGaA Fresenius has 100% management control of this
entity).  FME remains fully controlled and hence fully
consolidated by Fresenius AG as long as Fresenius owns more than
25% of FME.  Moody's notes that, although a change in the
consolidation method would affect the group's consolidated
operating performance and cash generation, it would also result
in a reduction in absolute debt levels.

The previous rating action for these issuers was on
March 31, 2006, when Moody's affirmed the ratings for Fresenius
and FME following US anti-trust approval and the expected
completion of the acquisition of Renal Care Group, Inc.

Outlook Actions:

* FMC Trust Finance S.a.r.l.

   -- Outlook, Changed To Positive From Stable

* Fresenius AG

   -- Outlook, Changed To Positive From Stable

* Fresenius Finance BV

   -- Outlook, Changed To Positive From Stable

* Fresenius Medical Care AG & KGaA

   -- Outlook, Changed To Positive From Stable

* Fresenius Medical Care Capital Trust II

   -- Outlook, Changed To Positive From Stable

* Fresenius Medical Care Capital Trust III

   -- Outlook, Changed To Positive From Stable

* Fresenius Medical Care Capital Trust IV

   -- Outlook, Changed To Positive From Stable

* Fresenius Medical Care Capital Trust V

   -- Outlook, Changed To Positive From Stable

Headquartered in Bad Homburg, Germany, Fresenius Medical Care AG
is the world's leading provider of dialysis products and
services.  

Fresenius AG is a global health care company with products and
services for dialysis (through Fresenius Medical Care),
international healthcare services and facilities management
(Fresenius ProServe) and nutrition and infusion therapies
(Fresenius Kabi).  The company also operates facilities in
Australia, Brazil, Canada, China, France, Korea, Mexico,
Portugal and Sweden, among others.


GENERAL MOTORS: To Invest US$63 Mil. in Saginaw Metal Casting
-------------------------------------------------------------
General Motors Corp. will invest US$63 million in its casting
plant in Saginaw, Michigan, to produce cylinder heads for 3.6-
liter high-feature V-6 engines by utilizing a new semi-permanent
mold process.

The investment includes plant renovation and installation of new
tooling and machinery to support the new casting process.  
Construction is slated to begin in the spring of 2009, and
targeted for completion in January 2011.  The project will
retain about 130 hourly employees.

"This investment would not be possible without the involvement
of employees at this facility, who have dedicated themselves to
improving the quality of our products and the efficiency of the
operations here at Saginaw Metal Casting Operations," Arvin
Jones, GM Powertrain manufacturing manager for castings and
components, said.  "Their efforts have contributed to GM's
competitiveness and our turnaround in North America."

The GM Powertrain Saginaw Metal Casting Operations management,
UAW Local 668 and IAM Local 2839 leadership successfully
negotiated competitive operating agreements that improve
operational effectiveness.  The agreements also address
processes and methods to improve production quality and safety
of the operations.

"On behalf of GM, I commend the United Auto Workers, UAW Local
668, IAM Local 2839 and Michigan 's leaders on the state and
local levels.  Working together we were able to build a
competitive business case to support this investment in
Michigan.  The US$63 million investment brings GM Powertrain's
total Michigan investments in the past year to more than half a
billion dollars," Mr. Jones said.

"GM's continued investment in its Michigan manufacturing
facilities is good news for Michigan jobs," Governor Jennifer
Granholm said.  "The cutting-edge technology that's going into
this facility not only solidifies the plant's future in Saginaw,
it's symbolic of the kind of high-tech, advanced automotive
manufacturing that can help grow jobs in Michigan tomorrow."

The semi-permanent mold process, considered to be the most
reliable process for casting cylinder heads, utilizes a water-
cooling process to produce a high integrity microstructure,
thereby increasing the material strength.  The 3.6-liter high
feature V-6 engine has applications in the GMC Acadia, Saturn
Outlook and Buick Enclave.

GM's Powertrain Saginaw Metal Casting Operations facility opened
in 1918, and is General Motors' largest aluminum producing
facility.  Notably, the new semi-permanent mold process becomes
the fourth method for casting aluminum at SMCO.  The plant
employs 924 hourly and 167 salaried workers and has an annual
payroll of US$100 million. In 2006, more than 421,646 aluminum
engine blocks and 1,872,336 aluminum engine cylinder heads were
produced at the facility.  Aluminum blocks and heads
manufactured at SMCO are used in the Vortec 4200 I-6 engines
that power the Chevrolet TrailBlazer and GMC Envoy; and the
Vortec 4800, 5300, 6000 and 6200 V-8 engines that power GM's
fullsize SUVs and pickups such as the Chevrolet Tahoe, Suburban,
Avalanche and Silverado; GMC Yukon, Yukon XL and Sierra; and
Cadillac Escalade, ESV and EXT.

General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the
world's largest automaker, has been the global industry sales
leader since 1931.  Founded in 1908, GM employs about 317,000
people around the world.  It has manufacturing operations in 32
countries, including India,  Mexico, and its vehicles are sold
in 200 countries.


GENERAL MOTORS: Exporting US$700 Mln in Auto Components to China
----------------------------------------------------------------
General Motors Corp. and its Chinese joint venture, Shanghai
General Motors, signed an agreement, which includes the export
of U.S.-manufactured Cadillacs and automotive components valued
at US$700 million.  GM's China operations have imported about
US$3.5 billion worth of vehicles, components, equipment, and
machinery from North America over the past ten years.

At a contract signing ceremony witnessed by the Chinese Ministry
of Commerce on May 16, 2007, General Motors Corp. Vice President
of Global Public Policy and Government Relations Ken W. Cole
emphasized the importance of good economic and trade relations
between the United States and China for General Motors.

"GM's business relationship with China is a true partnership
that creates value for all parties including the state of
Michigan, the United States, and China," Mr. Cole said.  "The
contract signing is an important example of how this
relationship is promoting exports from the U.S., especially from
Michigan."

The ceremony also comes at a significant time as GM's vehicle
sales in China will approach the one million annual level this
year.  In addition, GM and its Chinese partner, SAIC, will
celebrate the 10th anniversary of Shanghai General Motors and
Pan Asia Technical Automotive Center joint ventures that include
vehicle manufacturing, sales, after sales, automotive
engineering and design, and automotive financing.  Also, GM is
celebrating its 5th anniversary of the founding of the mini-
vehicle joint venture in southwestern China, SAIC-GM-WULING.

These joint ventures alone offer 35 different vehicles --
ranging from mini-cars and minivans to luxury sedans -- to
Chinese customers, with tremendous market success.  The GM China
Group has been profitable every year since 2001 and growth of
the Chinese vehicle market continues to be robust.

General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the
world's largest automaker, has been the global industry sales
leader since 1931.  Founded in 1908, GM employs about 317,000
people around the world.  It has manufacturing operations in 32
countries, including India,  Mexico, and its vehicles are sold
in 200 countries.


HIPOTECARIA CREDITO: Aims To Increase Loan Portfolio to MXN27B
--------------------------------------------------------------
Hipotecaria Credito y Casa funding head Agustin Gomez del Campo
told Business News Americas that Hipotecaria Credito y Casa
wants to grant MXN4 billion in new loans in 2007 to increase its
loan portfolio to MXN27 billion by year-end.

According to BNamericas, the goal represents a 17% yearly loan
growth over the MXN23-billion loan book Hipotecaria Credito had
at the end of 2006, "including off balance-sheet loans."

Mr. Gomez del Campo commented to BNamericas, "We will be
granting about 10,000 individual mortgages worth some 3bn pesos
this year."

The report says that Hipotecaria Credito will grant MXN1 billion
in construction bridge loans for housing developments that will
complete the expected MXN4 billion in new loans for this year.  
The company is also trying to expand its providers of mortgage
insurance, which so far has been only state-owned mortgage
development bank Sociedad Hipotecaria Federal.

Mr. Gomez del Campo told BNamericas, "We are currently working
with [insurers] Genworth and AIG.  This year we will be
originating individual mortgages with mortgage insurance
provided by these two firms.  The two main benefits from teaming
up with three firms [SHF, Genworth and AIG] are a reduction of
costs and greater flexibility in designing our products."

To "clean up its balance sheet," Hipotecaria Credito securitized
MXN1 billion of non-performing and past-due loans on April 30,
BNamericas says.

BNamericas notes that the asset-backed bonds were placed
privately and purchased by Credit Suisse's subsidiary, with
Hipotecaria Credito continuing to be responsible for recovering
the securitized bad loans.

Mr. Gomez del Campo told BNamericas that the securitized loans
nearly accounted for all of Hipotecaria Credito's non-performing
and past-due individual mortgage loans.  He said, "It would take
two years to reach again a critical mass [of bad loans] and
structure another transaction like this one."

Hipotecaria Credito has sold about MXN1.6 billion in residential
mortgage-backed securities (RMBS) so far this year, according to
BNamericas.  It also has other transactions under way.

"We are about to securitize MXN1.2 billion of construction
bridge loans in May or June," Gomez del Campo told BNamericas.  
He said that MXN600 million worth of RMBS paper may be sold in
June.

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

                        *     *     *

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


SANLUIS CORP: Fitch Affirms CCC+ Rating on USUS$75-Million Notes
--------------------------------------------------------------
Fitch Ratings has affirmed the foreign currency and local
currency issuer default ratings of SANLUIS Corporacion, S.A.B.
de C.V. at 'B-'.  In addition, Fitch has affirmed its 'B-' issue
rating and 'RR4' recovery rating on SANLUIS' senior secured bank
loans held by SANLUIS' operating subsidiaries and its 'CCC+'
issue rating and 'RR5' recovery rating on the 8% senior
unsecured notes due 2010 and on the USUS$75 million 7% mandatory
convertible debentures due 2011 issued by SANLUIS Co-Inter S.A.,
an intermediary holding company.  The rating outlook is stable.

The ratings are based on SANLUIS' business position as leading
producer of leaf springs suspension components in the North
American Free Trade Agreement market (United States, Canada and
Mexico combined) and Brazil, cost competitive advantages and
hard currency generation.  The ratings are constrained by high
financial leverage, industry cyclicality, cost pressures and the
company's history of financial default.  SANLUIS' business is
critically dependent on North America's automobile market and
the performance of the Big Three (General Motors Corp., Ford
Motors Co. and DaimlerChrysler) original equipment
manufacturers, although in recent years it has sought to
diversify its client base and expand sales to Asian and European
OEMs.  The company targets primarily the light truck market,
which over the past 15 years has experienced robust growth and
market share gains in North America and at present accounts for
approximately 54% of the total automobile market.

During 2006, the company was affected by challenging conditions
at the North America auto industry.  SANLUIS' revenues remained
flat from 2005 as higher sales of suspension components were
off-set by lower sales of brake components.  A 12% growth in
revenues from suspension components was driven primarily by the
Brazilian suspension division and increased average prices.  
During the second half the year, volume sales of both suspension
and brake components declined due to lower production and sales
of automobiles in North America.  Sales of brake components also
declined during the year driven by the end-of-cycle of an old GM
platform.  EBITDA reached USUS$61 million, 4% down from 2005.
Despite higher prices and operating efficiencies, since 2004
operating profit margins have remained below the levels of 2002-
2003 due to high energy and steel costs as well as discounts to
OEMs on mature platforms.  During the first three months of
2007, revenues grew by 1.3% driven by the suspension business
while sales of brake components remained flat.  Sales of
suspension components grew by 1.8% driven by higher average
prices.  Lower fixed manufacturing expenses and higher
productivity in the suspension business was, however, offset by
lower profitability at the brake division.

Consolidated leverage remains high, with a ratio of total debt
(including off-balance-sheet debt) to last-twelve months EBITDA
of 5.5 times at March 31, 2007.  At March 31, 2007, total
consolidated debt was USUS$341 million, a reduction of USUS$24
million from Dec. 31, 2005.  The debt was composed of USUS$171
million of secured bank loans at the suspension subsidiary
level, USUS$68 million of senior notes (including capitalized
interest) at the SISA intermediary holding company level due
2010, USUS$12 million in bank loans due 2009 at the brake
subsidiary level, USUS$12 million of non-restructured debt at
the holding company level and USUS$78 million of convertible
debentures issued by SISA (which are off-balance sheet under
Mexican GAAP but adjusted as debt by Fitch).  The company only
pays cash interest on its bank subsidiary debt and the remaining
is capitalized.  The amortization schedule is manageable over
the next three years, with major maturities concentrated in 2010
and 2011 (USUS$177 million and USUS$106 million respectively).  
Short-term debt accounts for only 14% of the debt or USUS$36
million.

SANLUIS expects EBITDA to grow during 2007, driven by the launch
of new platforms that were obtained last year at both the
suspension and brake divisions.  Annual capital expenditures
will remain moderate (in the USUS$10 million-20 million range)
due to restrictions under restructured debt agreements.  The
company should continue to generate positive free cash flow and
pay-off debt commitments as due.  This should translate into an
improvement in credit protection measures by the end of the
year.

Notwithstanding, in the near to medium term the company will
continue to confront challenging industry conditions due to the
negative outlook for the U.S. auto industry and particularly for
North American OEMs, which face weakening economic conditions,
market share erosion in their home market and restructuring
costs.  Additionally, sales of light trucks remain affected by
high fuel prices.  Production cutbacks and lower demand would
continue to stress volumes.  As OEMs struggle to improve their
cost structures, this could also result in further pressures on
the supplier base (including the company) for lower prices.

SANLUIS manufactures suspension components (leaf springs, coil
springs, torsion bars, bushings and stabilizer bars) and brake
components (drums and rotors) for pickup trucks, SUVs, minivans
and automobiles (light vehicles).  The company is the largest
manufacturer of leaf springs (used in the suspension of light
trucks) in the world and the leader in the NAFTA market, where
it holds a 92% market share.  Sales to Ford, GM and Chrysler
accounted for 74% of SANLUIS' total revenues in 2006.  In 2006,
SANLUIS earned USUS$615 million of revenues and USUS$61 million
of EBITDA.  More than 75% of revenues derived from exports,
almost all to the United States.




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


CHIQUITA BRANDS: Asks Court To Stay Banana Price Fixing Lawsuit
---------------------------------------------------------------
Federal court records say that Chiquita Brands International,
along with Del Monte Foods and Dole Food Company, has asked a
federal judge in the United States to stay an antitrust class-
action lawsuit on alleged conspiracy to fix banana prices, while
a settlement is being worked out, The Associated Press reports.

The AP relates that the case combines many antitrust lawsuits
filed in the federal court in Miami in 2005 after the European
Union disclosed a probe into price-fixing in the banana sector.

According to the AP, the legal representatives for Chiquita
Brands, Del Monte, Dole Food and Kevin Love, the counsel for the
complainants, filed for a stay in the case before the court.  

The AP notes that no details were released from the possible
accord between the large corporations and several smaller
produce firms.  Dole Food disclosed a settlement in a written
statement.  The settlement needs the authorization of a judge.  

"Dole has always stated that these lawsuits were without merit
and Dole's view has not changed.  Once there is final court
approval, these settlement agreements will bring to an end this
litigation against Dole and will not have any material effect on
the company's financial condition or results," Dole Food
Executive Vice President Michael Carter said in a statement.

                       About Dole Food

Headquartered in Westlake Village, California, Dole Food
Company, Inc. -- http://www.dole.com/-- is a producer and
marketer of fresh fruit, fresh vegetables and fresh-cut flowers,
and markets a line of packaged foods. The company has four
primary operating segments. The fresh fruit segment produces and
markets fresh fruit to wholesale, retail and institutional
customers worldwide.  The fresh vegetables segment contains
operating segments that produce and market commodity vegetables
and ready-to-eat packaged vegetables to wholesale, retail and
institutional customers primarily in North America, Europe and
Asia.  The packaged foods segment contains several operating
segments that produce and market packaged foods, including
fruit, juices and snack foods.  Dole's fresh-cut flowers segment
sources, imports and markets fresh-cut flowers, grown mainly in
Colombia and Ecuador, primarily to wholesale florists and
supermarkets in the U.S.

                      About Del Monte

Based in San Francisco, California, Del Monte Foods Company
(NYSE: DLM) -- http://www.delmonte.com/-- produces and
distributes processed vegetables, fruit and tomato products, and
pet products.  The products are sold under Del Monte, Contadina,
S&W, Starkist, College Inn, 9Lives, Kibbles 'n Bits, Meow Mix,
Milk-Bone, Pup-Peroni, Snausages, Pounce, and Meaty Bone.  The
Group has food-processing plants in South America and has
subsidiaries in Venezuela, Colombia, Ecuador and Peru.  The
production facilities are operated in California, the Midwest,
Washington and Texas, as well as 7 distribution centers.

                    About Chiquita Brands

Cincinnati, Ohio- based Chiquita Brands International, Inc.
(NYSE: CQB) -- http://www.chiquita.com/-- operates as an   
international marketer and distributor of bananas and other
fresh produce sold under the Chiquita and other brand names in
over 70 countries including Panama, Philippines, Australia,
Belgium, Germany, among others.  It also distributes and markets
fresh-cut fruit and other branded, value-added fruit products.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
May 16, 2007, Moody's Investors Service changed the rating
outlook for Chiquita Brands International, Inc. to negative from
stable.  

Ratings affirmed:

* Chiquita Brands International, Inc. (parent holding company)

   -- Corporate family rating at B3

   -- Probability of default rating at B3

   -- USUS$250 million 7.5% senior unsecured notes due 2014 at
      Caa2 (LGD5, 89%)

   -- USUS$225 million 8.875% senior unsecured notes due 2015 at
      Caa2 (LGD5, 89%)

* Chiquita Brands LLC (operating subsidiary):

   -- USUS$200 million senior secured revolving credit agreement
      at B1 (LGD2, 26%)

   -- USUS$24.3 million senior secured term loan B at B1 (LGD2,
      26%)

   -- USUS$368.4 million senior secured term loan C at B1 (LGD2,
      26%)




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DEL MONTE: Asks Court To Stay Banana Price Fixing Lawsuit
---------------------------------------------------------
Federal court records say that Del Monte Foods, along with
Chiquita Brands International and Dole Food Company, has asked a
federal judge to stay an antitrust class-action lawsuit on
alleged conspiracy to fix banana prices, while a settlement is
being worked out, The Associated Press reports.

The AP relates that the case combines many antitrust lawsuits
filed in the federal court in Miami in 2005 after the European
Union disclosed a probe into price-fixing in the banana sector.

According to the AP, the legal representatives for Chiquita
Brands, Del Monte, Dole Food and Kevin Love, the counsel for the
complainants, filed for a stay in the case before the court.  

The AP notes that no details were released from the possible
accord between the large corporations and several smaller
produce firms.  Dole Food disclosed a settlement in a written
statement.  The settlement needs the authorization of a judge.  

"Dole has always stated that these lawsuits were without merit
and Dole's view has not changed.  Once there is final court
approval, these settlement agreements will bring to an end this
litigation against Dole and will not have any material effect on
the company's financial condition or results," Dole Food
Executive Vice President Michael Carter said in a statement.

                    About Chiquita Brands

Cincinnati, Ohio- based Chiquita Brands International, Inc.
(NYSE: CQB) -- http://www.chiquita.com/-- operates as an   
international marketer and distributor of bananas and other
fresh produce sold under the Chiquita and other brand names in
over 70 countries including Panama, Philippines, Australia,
Belgium, Germany, among others.  It also distributes and markets
fresh-cut fruit and other branded, value-added fruit products.

                      About Dole Food

Headquartered in Westlake Village, California, Dole Food
Company, Inc. -- http://www.dole.com/-- is a producer and
marketer of fresh fruit, fresh vegetables and fresh-cut flowers,
and markets a line of packaged foods. The company has four
primary operating segments. The fresh fruit segment produces and
markets fresh fruit to wholesale, retail and institutional
customers worldwide.  The fresh vegetables segment contains
operating segments that produce and market commodity vegetables
and ready-to-eat packaged vegetables to wholesale, retail and
institutional customers primarily in North America, Europe and
Asia.  The packaged foods segment contains several operating
segments that produce and market packaged foods, including
fruit, juices and snack foods.  Dole's fresh-cut flowers segment
sources, imports and markets fresh-cut flowers, grown mainly in
Colombia and Ecuador, primarily to wholesale florists and
supermarkets in the U.S.

                      About Del Monte

Based in San Francisco, California, Del Monte Foods Company
(NYSE: DLM) -- http://www.delmonte.com/-- produces and
distributes processed vegetables, fruit and tomato products, and
pet products.  The products are sold under Del Monte, Contadina,
S&W, Starkist, College Inn, 9Lives, Kibbles 'n Bits, Meow Mix,
Milk-Bone, Pup-Peroni, Snausages, Pounce, and Meaty Bone.  The
Group has food-processing plants in South America and has
subsidiaries in Venezuela, Colombia, Ecuador and Peru.  The
production facilities are operated in California, the Midwest,
Washington and Texas, as well as 7 distribution centers.

                        *     *     *

Standard & Poor's assigned 'BB-' Long-term Foreign and Local
Issuer Credit rating to Del Monte Foods Company.

Fitch Ratings rates Del Monte Foods Company's Issuer default
rating at 'BB-'.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Sept. 28, 2006, In connection with Moody's Investors Service's
implementation of its new Probability-of-Default and Loss-Given-
Default rating methodology for the U.S. Consumer Products,
Beverage, Toy, Natural Product Processors, Packaged Food
Processors, and Agricultural Cooperative sectors, the rating
agency confirmed its Ba3 Corporate Family Rating for Del Monte
Corp.

Moody's also revised or confirmed 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
   ----------           -------  -------  ------   ----------
Gtd. Sr. Sec.
Revolving Credit
Facility Due 2011         Ba3      Ba2     LGD2       29%

Gtd. Sr. Sec.
Term Loan A Due 2011      Ba3      Ba2     LGD2       29%

Gtd. Sr. Sec.
Term Loan B Due 2012      Ba3      Ba2     LGD2       29%

Gtd. Sr. Sec.
Term Loan B Due 2012      Ba3      Ba2     LGD2       29%

Gtd. Sr. Sec.
Term Loan B Due 2012      Ba3      Ba2     LGD2       29%

Gtd. Sr. Sub. Global
Notes Due 2012            B2       B2      LGD5       83%

Gtd. Sr. Sub. Global
Notes Due 2015            B2       B2      LGD5       83%




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


DORAL FINANCIAL: Signs US$610 Million Stock Purchase Agreement
--------------------------------------------------------------
Doral Financial Corporation has entered into a definitive stock
purchase agreement, providing for the sale by the company of
US$610 million of Doral common stock for US$0.63 per share to a
newly-formed entity, in which Bear Stearns Merchant Banking --
BSMB -- and other investors, including Marathon Asset
Management, Perry Capital, the D. E. Shaw group, Tennenbaum
Capital Partners, Eton Park Capital Management, Goldman Sachs &
Co., Canyon Capital Advisors and GE Asset Management, will
invest.  Doral Holdings will be registered as a bank holding
company.  Following the recapitalization transaction, Holdings
will own approximately 90% of Doral's common stock outstanding,
and Doral's existing common shareholders will own approximately
10%.

The investment by Holdings, together with the other transactions
referenced below, are expected to provide Doral with the
financial resources and capital to repay at maturity its US$625
million floating rate senior notes due July 20, 2007, to fund
the previously-announced settlement of the existing consolidated
securities class action and shareholder derivative litigation
and to pay transaction expenses.  Holdings has obtained equity
commitments for approximately US$415 million and is in active
discussions with certain other investors to obtain commitments
for the balance.  The Doral Board, in approving the
recapitalization plan and equity investment by the unanimous
vote of the independent directors, has received the opinion of
its independent financial advisor, Rothschild Inc., that the
consideration payable in the transaction is fair, from a
financial point of view, to the company's common shareholders.  
Certain shareholders, who collectively own approximately 10.7%
of the outstanding common stock of Doral, have agreed to vote,
subject to customary conditions, in favor of the transaction.

"The transaction comes at the end of an exhaustive process by
the Company's Board of Directors to explore financial and
strategic alternatives to secure Doral's future.  It will permit
Doral to continue as a well-capitalized major financial
institution in Puerto Rico.  Although highly dilutive to
existing common shareholders, the Board believes it is the best,
and probably the only, means to retain some value for existing
shareholders and enable them to participate in the future of the
company," said Dennis G. Buchert, Chairman of the Board of Doral
Financial Corp.  "By agreeing to make a substantial investment
in the Company, a group of sophisticated investors has made a
vote of confidence in our institution, and everyone at Doral
should feel proud of this achievement," Mr. Buchert concluded.

"The successful consummation of this recapitalization will
resolve the Company's anticipated liquidity needs and will
position us to fully focus on our long-term strategic priority
of profitably growing Doral, enhancing our market presence in
Puerto Rico and building the institution," said Glen R. Wakeman,
CEO of Doral Financial Corp.  "We are very appreciative of the
extraordinary efforts of our employees and look forward to
continuing to transform Doral into a first class community bank.  
I am confident that our talented and committed team will
accomplish this goal."

"We are excited about this investment in Doral and the
opportunity to back Glen Wakeman and his talented new management
team," said David E. King, Senior Managing Director and Partner
of BSMB.  "Doral is an outstanding franchise and with this new
investment is well-positioned to take advantage of future growth
opportunities.  We look forward to supporting the Company with
its strategic initiatives."

The consummation of the transaction is subject to a number of
conditions, including:

   * shareholder approval of the transaction;

   * various regulatory approvals and confirmations;

   * final approval by the U.S. District Court for the Southern
     District of New York of the previously announced settlement
     of the consolidated securities class action and shareholder
     derivative lawsuits pending against the Company;

   * the receipt by Holdings or an affiliate of US$215 million
     in additional equity commitments;

   * the receipt by Doral Financial of final regulatory
     approvals to receive, within one day after the closing, at
     least US$150 million from the transfer of Doral's portfolio
     of mortgage servicing rights to Doral Bank Puerto Rico and
     from a dividend distribution from Doral Bank FSB following
     consummation of the previously announced sale of its New
     York branches; and

   * the absence of certain material adverse developments with
     respect to the company or its business.

Although the company will use its reasonable best efforts to
seek to timely satisfy the conditions to closing, no assurance
can be given that the transaction will be completed by
July 20, 2007, or at any time. If the transaction is not
consummated by July 20, 2007, the company will likely be unable
to repay the Notes at maturity.  If the Notes cannot be repaid,
the company would likely seek protection under applicable
bankruptcy laws and banking regulators could take actions to
protect the interests of depositors, either of which would
materially negatively impact the value of the Company's
outstanding common stock.

The company also reported today that the U.S. District Court for
the Southern District of New York has scheduled for
July 16, 2007, the hearing to consider the final approval of the
proposed settlement of the pending litigation.

Bear, Stearns & Co. Inc. acted as exclusive financial advisor to
the company, and Rothschild Inc. acted as financial advisor to
the Transaction Committee of the Board of Directors of Doral
Financial Corporation.  Cleary Gottlieb Steen & Hamilton LLP and
Pietrantoni Mendez & Alvarez LLP acted as legal counsel to the
company, and Latham & Watkins LLP acted as legal counsel to the
Transaction Committee and the independent directors of the
company's board.  Simpson Thacher & Bartlett LLP and Kirkland &
Ellis LLP acted as legal counsel to Holdings and BSMB.

As previously disclosed in its Form 12b-25, the Company was
unable to timely file its quarterly report on Form 10-Q for
quarter ended March 31, 2007 with the Securities and Exchange
Commission.  It expects to file this report by the end of May.

Based in New York City, Doral Financial Corp. (NYSE: DRL) --
http://www.doralfinancial.com/-- is a diversified financial     
services company engaged in mortgage banking, banking,
investment banking activities, institutional securities and
insurance agency operations.  Its activities are principally
conducted in Puerto Rico and in the New York City metropolitan
area.  Doral is the parent company of Doral Bank, a Puerto Rico
based commercial bank, Doral Securities, a Puerto Rico based
investment banking and institutional brokerage firm, Doral
Insurance Agency Inc. and Doral Bank FSB, a federal savings bank
based in New York City.

                        *     *     *

As reported in the Troubled Company Reporter on Jan. 8, 2007,
Standard & Poor's Ratings Services lowered its long-term ratings
on Doral Financial Corp., including the counterparty credit
rating, to 'B' from 'B+'.  S&P said the outlook remains
negative.


DORAL FINANCIAL: Fitch Cuts Ratings; Keeps Watch Negative
---------------------------------------------------------
Fitch Ratings has lowered Doral Financial Corporation's ratings
as:

  Doral Financial Corporation

     -- Long-term Issuer Default Rating to 'B' from 'B+';
     -- Senior debt to 'B-' from 'B';
     -- Preferred stock to 'CCC' from 'CCC+';
     -- Individual to 'E' from 'D/E'.

  Doral Bank

     -- Long-term Issuer Default Rating to 'B+' from 'BB-';
     -- Long-term deposits to 'BB- from 'BB';
     -- Individual to 'D' from 'C/D'.

The ratings remain on Rating Watch Negative.

Doral Financial announced it has entered into a definitive stock
purchase agreement, providing for the sale by the company of
US$610 million of common stock to an investor group.  The group
includes: Bear Stearns Merchant Banking, Marathon Asset
Management, Perry Capital, D. E. Shaw group, Tennenbaum Capital
Partners, Eton Park Capital Management, Goldman Sachs & Co.,
Canyon Capital Advisors and GE Asset Management.

Following the issuance the investment group will control 90% and
current shareholders will own the remaining 10%.

Although, Fitch views the capital injection favorably, Doral
Financial is under a tight time frame to meet conditions to
acquire the full amount of liquidity by July 20, 2007.  A
successful recapitalization plan will allow Doral Financial to
navigate through some significant near-term issues.  However,
once the recapitalization is complete, longer-term issues
continue to be present that Doral Financial must address.

Specifically, the rating action is driven by the numerous
conditions and approvals that need to be met in order for Doral
Financial to acquire the much needed liquidity prior to the
nearing USUS$625 million debt maturity on July 20, 2007.  These
conditions include: shareholder approval of the transaction,
various regulatory approvals, final approval by the U.S.
District Court for the Southern District of New York of the
previously announced settlement of the consolidated securities
class action and shareholder derivative lawsuits pending against
the Company; the receipt by the investment group of USUS$215
million in additional equity commitments; the receipt by Doral
Financial of final regulatory approvals to receive, within one
day after the closing, at least USUS$150 million from the
transfer of Doral's portfolio of mortgage servicing rights to
Doral Bank Puerto Rico and from a dividend distribution from
Doral Bank FSB following consummation of the previously
announced sale of its New York branches.

The resolution of the Negative Rating Watch Negative will mostly
be driven by the successful completion of the stock purchase
agreement.  The proceeds from the investment group will pacify
near-term liquidity concerns with the pending USUS$625 million
debt maturing July 20, 2007.  Also, the sale of the New York
bank and the proceeds from the sale of the MSRs will cover the
litigation settlement.  However, long-term concerns still exist
which include: demonstrated success of business model, an
ability to return to profitability, rising non-performing assets
that could cause credit costs to rise, current weakened state of
the Puerto Rico economy, and Doral Financial's market position
in Puerto Rico has been reduced.

In addition, Fitch currently rates the following:

  Doral Financial Corporation

     -- Short-term Issuer 'B';
     -- Support '5'.

  Doral Bank

     -- Short-term Issuer 'B';
     -- S-T Deposit Obligations 'B';
     -- Support '5'.

Based in New York City, Doral Financial Corp. (NYSE: DRL) --
http://www.doralfinancial.com/-- is a diversified financial      
services company engaged in mortgage banking, banking,  
investment banking activities, institutional securities and  
insurance agency operations.  Its activities are principally  
conducted in Puerto Rico and in the New York City metropolitan  
area.  Doral is the parent company of Doral Bank, a Puerto Rico  
based commercial bank, Doral Securities, a Puerto Rico based  
investment banking and institutional brokerage firm, Doral  
Insurance Agency Inc. and Doral Bank FSB, a federal savings bank  
based in New York City.


DORAL FINANCIAL: Moody's May Downgrade B2 Rating After Review
-------------------------------------------------------------
Moody's Investors Service is continuing its review of Doral
Financial Corporation for possible downgrade.  The ratings have
been on review for possible downgrade since January 5, 2007 when
Doral was downgraded to B2 from B1 for senior debt.  The review
has centered on Doral's prospects for refinancing US$625 million
of debt maturing in July.

Moody's notes that on May 17, 2007, Doral announced that it
reached a definitive agreement with Bear Stearns Merchant
Banking and a number of other investors to invest US$610 million
in exchange for 90% of Doral's common equity.  Following
completion of the transaction, existing shareholders will own
10% of the company.  The proceeds from the capital raise,
combined with other financial resources, should allow Doral to
repay the US$625 million of debt due in July.  In addition, the
payment obligation under Doral's previously announced settlement
of shareholder litigation, which is contingent on the capital
raise being successful, will principally be funded by cash from
Doral Bank Puerto Rico in exchange for Doral's mortgage
servicing rights.

Notwithstanding the announcement, the rating agency noted that
the agreement with the investor group will require regulatory
and shareholder approval, and the transaction will have to be
funded, prior to the date of the debt maturity, July 20th.  That
time frame remains tight, in Moody's view.

Moody's expects to complete its review by late July. If the
transaction closes on time and the debt is paid in full, the
rating will be confirmed.  In this scenario, Moody's anticipates
that positive rating pressure would emerge upon successful
execution of the business plan of Doral's new management team.
On the other hand, if Doral fails to obtain the necessary
approvals required for the transaction to close, it will likely
file for bankruptcy and a downgrade is likely.

                    About Doral Financial Corp.

Based in New York City, Doral Financial Corporation (NYSE: DRL)
-- http://www.doralfinancial.com/-- is a diversified financial  
services company engaged in mortgage banking, banking,
investment banking activities, institutional securities and
insurance agency operations.  Its activities are principally
conducted in Puerto Rico and in the New York City metropolitan
area.  Doral is the parent company of Doral Bank, a Puerto Rico
based commercial bank, Doral Securities, a Puerto Rico based
investment banking and institutional brokerage firm, Doral
Insurance Agency Inc. and Doral Bank FSB, a federal savings bank
based in New York City.


MICRON TECHNOLOGY: S&P Holds BB- Rating on US$1.1 Billion Notes
---------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its BB-/Stable/--
corporate credit rating on Boise, Idaho-based Micron Technology
Inc.  At the same time, Standard & Poor's assigned its 'BB-'
rating to the company's US$1.1 billion convertible senior
notes due 2014.
      
"Our ratings on Micron reflect the challenges of supplying
capital- and technology-intensive products in an environment of
severe price pressures and aggressive competition, tempered by
the company's moderate financial policies, good industry
position, and improving business diversity," said Standard &
Poor's credit analyst Bruce Hyman.  Micron has diversified its
business away from the commodity dynamic random access memory
industry, used in PCs.  Micron also supplies specialty DRAMs for
servers, networking, and wireless applications; NAND flash
memories for music players through a joint venture with Intel
Corp.; and is the leading supplier of complementary metal-oxide
semiconductor image sensors for phones.
     
Micron is the No. 5 DRAM supplier, having substantially reduced
its exposure to the commodity market.  About 20%-25% of wafers
entering production are for imaging, a similar amount are
specialty DRAM, 15%-20% NAND, and about 40% commodity PC DRAM;
the percentages vary seasonally.  PC DRAMs had been 75% of wafer
starts in the November 2004 quarter.  Micron's 51%-owned joint
venture with Intel Corp., IM Flash Technologies LLC, will supply
a significant portion of Apple Computer Corp.'s iPod memory
needs, in addition to merchant market sales.  NAND output is
rising sharply as a Utah plant comes on line this year, followed
by a Singapore plant in 2008.  Micron has the leading 38% share
of CMOS-based image sensors for phones, cameras, webcams, and
other consumer, security, and automotive applications.

Micron Technology, Inc. -- http://www.micron.com/-- (NYSE:MU)  
provides advanced semiconductor solutions.  Through its
worldwide operations, Micron manufactures and markets DRAMs,
NAND Flash memory, CMOS image sensors, other semiconductor
components and memory modules for use in leading-edge computing,
consumer, networking and mobile products.  The company is
headquartered in Boise, Idaho, and has manufacturing facilities
in Italy, Scotland, Japan, Puerto Rico and Singapore.




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


ARVINMERITOR INC: Completes Emissions Biz Sale to One Equity
------------------------------------------------------------
ArvinMeritor, Inc., has completed the sale of its Emissions
Technologies business group to One Equity Partners, an equity
investment firm based in New York for approximately US$310
million, consisting of cash and other consideration including
specified assumed liabilities.

"We are pleased to have completed this transaction and look
forward to using the proceeds from the sale to support our
continued efforts to strengthen our balance sheet and increase
our ability to invest in technology, research and development
that aligns with our strategic focus on selected vehicle
systems," said Chip McClure, Chairman, CEO and President.  
"Completing the sale of this business is an important milestone
for us and underscores our commitment to building value for
ArvinMeritor's shareholders."

As reported in the Troubled Company Reporter-Latin America on  
Feb. 6, 2007, ArvinMeritor has signed a definitive agreement to
sell its Emissions Technologies business group to One Equity
Partners.

"The decision to sell our Emissions Technologies business is
part of our long-term strategy to refocus our company and
concentrate on the strengths and core competencies that will
generate future earnings growth for ArvinMeritor," said Mr.
McClure.

Headquartered in Troy, Michigan, ArvinMeritor, Inc. (NYSE: ARM)
-- http://www.arvinmeritor.com/-- is a premier USUS$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 USUS$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


LEAR CORP: Fitch Cuts & Withdraws Low B & Junk Ratings
------------------------------------------------------
Fitch Ratings has simultaneously downgraded and withdrawn these
ratings of Lear Corp.:

     -- Issuer Default Rating to 'B-' from 'B';
     -- Senior unsecured to 'CCC/RR6' from 'B/RR4'.

In addition, Fitch has affirmed and withdrawn these Lear Corp.
ratings:

     -- Senior secured revolving facility at 'BB/RR1';
     -- Senior secured term loan at 'BB/RR1'.

The Outlook is Negative.

The downgrade of the IDR reflects the increased level of
indebtedness expected upon completion of the acquisition by
American Real Estate Partners, LLC.  The senior unsecured rating
reflects Fitch's expectation that the debtholders would recover
0% to 10% ('RR6') in a distressed scenario due to a USUS$1
billion increase in secured indebtedness.

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

Headquartered in Southfield, Michigan, Lear Corporation (NYSE:
LEA) -- http://www.lear.com/-- supplies automotive   interior   
systems and components.  Lear provides complete seat systems,
electronic products and electrical distribution systems and
other interior products.

Lear also operates in Latin American countries including
Argentina, Mexico, and Venezuela.  Its European operations are
located in Czech Republic, United Kingdom, France, Germany,
Honduras, Hungary, Poland, Portugal, Romania, Russia, Slovakia,
Spain, Sweden, South Africa, Morocco, Netherlands, Tunisia and
Turkey.  Its Asian facilities are in China, India, Japan,
Philippines, Singapore, South Korea, and Thailand.


PETROLEOS DE VENEZUELA: Allocates US$27.3B in Public Projects
-------------------------------------------------------------
Venezuelan state-owned oil firm Petroleos de Venezuela SA and
the Central Bank have given a total of US$27.3 billion to the
National Development Fund, or Fonden, Chris Carlson at
Venezuelanalysis.com reports, citing Venezuelan Finance Minister
Rodrigo Cabezas.

Minister Cabezas said that of the US$27.3 billion, about US$20.2
billion have been invested in public projects, Mr. Carlson at
Venezuelanalysis.com notes.  Fonden has become the fundamental
means of boosting investment in Venezuela.

Venezuelanalysis.com's Mr. Carlson relates that Minister Cabezas
presented Fonden's first quarter report on May 16, providing
details of its investment in 130 different development projects
in Venezuela.  According to the report, some USUS$20.15 billion
from the nation's hard currency reserves got invested in areas
like:

          -- housing,
          -- defense,
          -- energy, and
          -- infrastructure.

Minister Cabezas reiterated to Venezuelanalysis.com's Mr.
Carlson the importance of Fonden in boosting public investment
in the country during the current sustained economic growth.  He
commented, "Fonden was born as a vehicle to change the
distribution of the oil income in Venezuela."

About 17.4% of the US$20.15 billion investment went to
infrastructure, 17% to energy and petroleum projects, and 11% to
defense.  Fonden invested 9% of the resources to housing
projects and 4% to the health sector, according to
Venezuelanalysis.com's Mr. Carlson.   Among the specific
projects Fonden funded are:

          -- the Caracas subway for a total of USUS$699 million,
          -- the Los Teques subway for US$254 million,
          -- US$259 million for the Guarenas and Guatire
             subway,
          -- US$194 million for the subway in Valencia, and
          -- US$120 million for Maracaibo's subway.

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

                        *     *     *

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


PETROLEOS DE VENEZUELA: Inks Software Dev't Deals with Beicip
-------------------------------------------------------------
Venezuela's state-owned oil firm Petroleos de Venezuela SA's
Exploration and Production Vice-President Luis Vierma has signed
two accords with French corporation Beicip-Franlab Chief
Executive Officer Jean Burrus for exploration and production
software development, El Universal reports.

Mr. Vierma told El Universal that the first contract guarantees
Petroleos de Venezuela's participation in the final development
of information technology program Termis Plus Plus.  The
specialized program in exploration -- particularly basin
modeling -- will help lessen the exploration risk, especially
off shore.

According to El Universal, the second accord signed is for the
development of cutting-edge software FIRST, which is needed for
comprehensive studies on hydrocarbons deposits.

"FIRST will be a fundamental tool to develop the deposits
located in the Orinoco oil belt, where we face the challenge of
raising the recovery index from 8 to 20%," Mr. Vierma commented
to El Universal.

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: Oil Export Revenues Plummet 10%, Central Bank Says
---------------------------------------------------------------
Venezuelan crude oil export profits dropped 10% for the first
three months in 2007 amid lower prices, The Associated Press
reports, citing Central Bank figures.

The AP relates that the figures released by Central Bank last
week disclosed the value of oil exports by Venezuela's state oil
company fell to US$10.7 billion (EUR7.9 billion) compared to the
same period in 2006.  Exports from privately run oil projects
slumped 24.4% to US$1.8 billion (EUR1.3 billion)

International Herald Tribune says that some of that decline
resulted from a drop in the price of the country's bin of crude,
which averaged US$50 per barrel compared to US$52 during the
first quarter of 2006.

Under the Central Bank figures, Venezuela's economy rose 8.8%
during the period, oil business activity contracted sharply by
5.6%.

International Energy Agency asserted that Venezuela's output of
barrels reached to 2.35 million in April despite the
government's claims that it is producing about 3.1 million
barrels a day.  The Organization of Petroleum Exporting
Countries' latest estimate, however, was 2.37 million barrels
per day, sources said.

According to Analysts, Venezuelan industry suffered from a
dropoff in private investment as companies reacted to President
Hugo Chavez' moves regarding the government's control over the
industry.  Analysts, the AP states, believed that the state oil
company is overwhelmed from the Chavez administration using it
to fund its social initiatives and nationalizations in other
sectors.

                        *     *     *

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


                        ***********


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

Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA.  Marjorie C. Sabijon, Sheryl Joy P. Olano, Rizande
de los Santos, and Christian Toledo, 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
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Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.

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members of the same firm for the term of the initial
subscription or balance thereof are USUS$25 each.  For
subscription information, contact Christopher Beard at
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           * * * End of Transmission * * *