TCRLA_Public/070615.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Friday, June 15, 2007, Vol. 7, Issue 119

                            Headlines

A R G E N T I N A

ALITALIA SPA: Reaches Agreement with Flight Attendant Unions
AYLEN SRL: Trustee Verifies Proofs of Claim Until July 16
BANCO DE GALICIA: Court Okays Firm's Capital Increase
EL PASO: To Issue Public Offering of US$1.275 Bil. Senior Notes
EL PASO: Fitch Rates Proposed US$1,275,000,000 Notes at BB+

ESTILO FASHION: Files for Bankruptcy Protection in Court
FIRST DATA: Completes Acquisition of FundsXpress
HIDROELECTRICA PIEDRA: S&P Puts B Rating on Upcoming Bonds
KRONOS INC: Acquires Captor; Extends Market Expansion in Europe
POLICLINICO LOMAS: Proofs of Claim Verification Ends on Aug. 24

SADYE SA: Proofs of Claim Verification Ends on July 30
YPF SA: Andina Not Notified by Bolivia on Officials' Extradition

* ARGENTINA: Imposes Fines on Royal Dutch & Petroleo Brasileiro

B A R B A D O S

HILTON HOTELS: Enters Into Partnership with Moet Hennessy

B E R M U D A

SEA CONTAINERS: Wants to Obtain Up to US$176.5-Mil. DIP Loan
SEA CONTAINERS: U.S. Trustee Appoints HSBC to Creditors' Panel

B O L I V I A

TRILOGY INTERNATIONAL: Moody's Puts B2 Corporate Family Rating

B R A Z I L

BANCO NACIONAL: Grants BRL18.9-Million Financing to Metasa SA
ELETROPAULO METROPOLITANA: Fitch Affirms BB- Default Ratings
GERDAU AMERISTEEL: Pacific Coast Buys Steel Contractor Business
LOJAS COLOMBO: S&P Affirms B Rating with Stable Outlook
PETROLEO BRASILEIRO: In Talks with Producers on Ethanol Price

PETROLEO BRASILEIRO: Mulls Hiring Regasification Vessel
PETROLEO BRASILEIRO: Argentina Fines Firm for Fuel Insufficiency
REXAM PLC: Moody's Puts (P)Ba2 Rating on Proposed Securities
UTSTARCOM INC: Defers 10-Q & 10-K Filing with U.S. SEC
UTSTARCOM INC: Ends Strategic Alternatives Process; EVP Resigns

VERINT SYSTEMS: Posts US$1.2 Mil. Net Loss in 2007 First Quarter
XERIUM TECH: Promotes Eduardo Fracasso as President-Brazil Unit

C A Y M A N   I S L A N D S

ALTERNATIVE MULTI: Proofs of Claim Filing Is Until July 12
BERNARD GLOBAL: Proofs of Claim Must be Filed by July 12
COMPASS LIMITED: Proofs of Claim Filing Ends on July 3
JORDAIR CO: Proofs of Claim Filing Deadline Is July 12
MARATHON PETROLEUM: Proofs of Claim Filing Is Until June 21

MICROPORT MEDICAL: Proofs of Claim Must be Filed by July 12
MINCS-GLACE: Proofs of Claim Filing Is Until July 12
NOTES FUNDING: Proofs of Claim Must be Filed by July 12
PARMALAT SPA: Milan Judge Orders Four Banks to Stand Trial

C H I L E

TECH DATA: Names Caryl Lucarelli as Human Resources Vice Pres.

C O L O M B I A

BANCOLOMBIA: UBS Maintains Buy Rating on Firm's Shares

* COLOMBIA: S&P Puts BB+ Rating on Proposed Global TES Bond

D O M I N I C A N   R E P U B L I C

SMART MODULAR: Good Performance Cues S&P to Lift Rating to BB-

E C U A D O R

PETROECUADOR: Developing Panacocha Field
PETROLEUM GEO: US$800MM Debt Refinancing Cues S&P to Affirm Rtg.

J A M A I C A

NATIONAL WATER: Paying A Cent for Breaching Guaranteed Standards

M E X I C O

BEARINGPOINT INC: Hires John Distefano as VP & Exec. Director
BRISTOW GROUP: Completes US$300 Million Senior Notes Offering
CLEAR CHANNEL: Eyes 50% Increase in Outdoor Advertising Market
ENERSYS INC: Reports US$10.6 Mil. Net Income in 2007 Fourth Qtr.
GLOBAL POWER: Wants Exclusive Plan-Filing Period Extended

JOAN FABRICS: Greystone Offers US$13.5 Million for Assets
SATELITES MEXICANOS: Seeks New Creditor To Refinance Debt
WARNACO GROUP: Improved Revenues Prompt S&P to Lift Rating to BB

P A N A M A

CHIQUITA: Inks Plantation Improvement Pact with Coosemupar

P U E R T O   R I C O

MAIDENFORM BRANDS: S&P Upgrades Credit Rating to BB- from B+
NEWCOMM WIRELESS: Wants Lopez-Zambrana as Special Tax Counsel

T R I N I D A D   &   T O B A G O

BRITISH WEST: Debt To Cost Trinidad Additional US$556 Million

U R U G U A Y

GERDAU SA: Will Invest BRL73 Million in Miguel Burnier Mine

* URUGUAY: State Power Firm Investing US$145 Million in 2008

V E N E Z U E L A

DAIMLERCHRYSLER AG: Elects to Redeem Term Assets of Trust
LEAR CORP: European Commission Clears US$5.3 Billion Icahn Deal

* Recovery Ratings Assigned to 25 Speculative-Grade Sovereigns


                       - - - - -


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


ALITALIA SPA: Reaches Agreement with Flight Attendant Unions
------------------------------------------------------------
Alitalia S.p.A. has inked a deal with a trade unions representing the
carrier's flight attendants,  Thomson Financial reports.

Alitalia, Thomson Financial relates, said the agreement was brokered with
the support of the Italian Transport Ministry.  The carrier, however, did
not reveal the details of the agreement.

The flight attendants launched in May an industrial action that forced
Alitalia to ground 30 flights a day, Thomson Financial relates.  Alitalia
officials, however, said fewer flights were being canceled recently.

Government ministers, however, hit the industrial action, saying that it
is not helping the ongoing privatization of the carrier.

The Italian government is selling at least 39.9% of its stake in Alitalia
S.p.A.  Remaining bidders are partners OAO Aeroflot and Unicredit Italiano
S.p.A.; and the consortium of AirOne S.p.A. and Intesa-San Paolo S.p.A..

Italy gave the bidders until 5:00 p.m. on July 2 to present their binding
offers.

                         About Alitalia

Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.com/
-- provides air travel services for
passengers and air transport of cargo on national, international
and inter-continental routes.  The Italian government owns 49.9% of Alitalia.

The company also operates in Argentina, China, and Japan.

Despite a EUR1.4 billion state-backed restructuring in 1997,
Alitalia posted net losses of EUR256 million and EUR907 million
in 2000 and 2001 respectively.  Alitalia registered
EUR93 million in net profits in 2002 after a EUR1.4 billion
capital injection.  The carrier booked consecutive annual net
losses of EUR520 million in 2003, EUR813 million in 2004, and
EUR168 million in 2005.


AYLEN SRL: Trustee Verifies Proofs of Claim Until July 16
---------------------------------------------------------
Laureano Ventura Sanchez Daniel, Teodoro Fiore y Eduardo Pedro Moschitta,
the court-appointed trustee for Aylen S.R.L.'s reorganization proceeding,
is verifying creditors' proofs of claim until July 16, 2007.

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

Laureano Ventura will present the validated claims in court as individual
reports on Sept. 13, 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 Aylen 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 Aylen's accounting and banking
records will be submitted in court on Oct. 29, 2007.

The informative assembly will be held on May 8, 2008.  Creditors will vote
to ratify the completed settlement plan during the assembly.

The debtor can be reached at:

         Aylen S.R.L.
         Calle 523, Numero 2672
         La Plata, Buenos Aires
         Argentina

The trustee can be reached at:

         Laureano Ventura Sanchez Daniel, Teodoro Fiore y
         Eduardo Pedro Moschitta
         Calle 45, Numero 1376
         La Plata, Buenos Aires
         Argentina


BANCO DE GALICIA: Court Okays Firm's Capital Increase
-----------------------------------------------------
Banco de Galicia said in a filing with the local stock exchange that a
court in Buenos Aires has dismissed a previous ruling that postponed the
bank's planned capital raise.

As reported in the Troubled Company Reporter-Latin America on June 12,
2007, Banco de Galicia delayed the subscription period for its planned
capital increase to 30 working days.  Banco de Galicia said that a court
ruling blocked its planned capital increase.  According to Banco de
Galicia, it set a non-binding ARS5.3 per share price for its upcoming
capital increase.  The preferential subscription period would be from May
31 to
June 11.  The price was equal to Banco de Galicia's average stock price
over the last 20 working days.  The final price would be disclosed the day
before the preferential subscription period would begin.  Banco de Galicia
would issue up to 100 million class B shares at a nominal value of ARS1
each, through cash or bonds maturing 2010, 2014 and 2019.  The capital
raise was approved by the central bank.  According to Banco de Galicia,
the 30-day extension was needed as the bank is appealing the court's
decision.  Banco de Galicia faces two lawsuits filed by Maria Isabel
Escasany, the head and the largest shareholder of investment vehicles
Lagarcue and Theseus.

A spokesperson from Banco de Galicia's parent firm Grupo Financiero, which
would subscribe bonds of US$100 million, told Business News Americas thaht
Ms. Escasany is given five days to file an appeal on the judge's decision.
The capital raise will be reflected in Banco de Galicia's balance sheet
for the third quarter 2007.

Headquartered in Buenos Aires, Argentina, Banco de Galicia y
Buenos Aires SA -- http://www.e-galicia.com/-- is an
Argentinean private bank that is engaged in commercial banking,
providing general banking services to large corporations, small
and medium-sized companies, agricultural and cattle farms and
individuals.  The company controls an extensive and diverse
network of subsidiaries, which include Banco Galicia Uruguay SA,
Galicia Capital Markets SA, Galicia Factoring y Leasing SA, Agro
Galicia SA, Galicia Administradora de Fondos SA, Galicia Valores
SA, Galicia Warrants SA, Net Investments SA, Sudamericana
Holding SA and Tarjetas Regionales SA.  Through its subsidiaries
the company offers accounting, investment and insurance
services, loans, checks and debit and credit cards.  It also
finances the development of real estate, acts as a fiduciary and
leases properties to interested parties.  It operates over 400
branches across the country and provides e-banking services to
customers via its Internet site.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 23, 2007, Banco de Galicia y Buenos Aires' Obligaciones
Negociables issued on Nov. 6, 2001, for the original amount of
US$12 million was rated D by the Argentine arm of Standard &
Poor's International Ratings.


EL PASO: To Issue Public Offering of US$1.275 Bil. Senior Notes
---------------------------------------------------------------
El Paso Corporation will issue US$1.275 billion of its unsecured senior
notes in a public offering.  The notes are being offered under El Paso's
shelf registration statement.

El Paso plans to use the net proceeds from the sale of the notes to fund
the purchase by El Paso's subsidiary, El Paso Exploration & Production
Company, of any and all of EPEP's US$1.2 billion outstanding principal
amount of its 7-3/4 percent Senior Notes due 2013 tendered in the
previously announced tender offer and consent solicitation with respect to
those notes and for general corporate purposes.

El Paso's offering is being made only by means of a prospectus and related
prospectus supplement, a copy of which may be obtained from:

          Deutsche Bank Securities Inc.
          60 Wall Street
          New York, New York 10005
          Tel: (800) 503-4611.

Headquartered in Houston, Texas, El Paso Corp. (NYSE:EP)
-- http://www.elpaso.com/-- provides natural gas and related
energy products in a safe, efficient, and dependable manner.
The company owns North America's largest natural gas pipeline
system and one of North America's largest independent natural
gas producers.  The company has operations in Argentina.


EL PASO: Fitch Rates Proposed US$1,275,000,000 Notes at BB+
-----------------------------------------------------------
Fitch Ratings has affirmed the ratings of El Paso Corporation and its core
pipeline subsidiaries, and assigned a senior unsecured rating of 'BB+' to
the company's proposed offering of US$1.275 billion of senior unsecured
notes due in 2014 and 2017. Proceeds from the note offering will be used
to refinance the US$1.2 billion of 7-3/4% senior unsecured notes at the
company's wholly owned upstream subsidiary, El Paso Exploration &
Production Company.  El Paso announced a cash tender offer and consent
solicitation for EEPC's notes on May 29, 2007.  Fitch has also upgraded
EEPC's ratings, which are now the same as the parent company's ratings.
The Rating Outlook for all ratings is Stable.

The rating affirmation recognizes the significant reduction in
consolidated debt under El Paso as well as the further reduction in
interest expense through a series of debt refinancings under the company's
core subsidiaries.  Consolidated debt has been reduced to under US$11.7
billion as of March 31, 2007.  While the current debt refinancing
effectively moves US$1.2 billion of debt from the subsidiary to the
parent, El Paso's ultimate capital structure following the current debt
reduction phase continues to evolve.  Fitch expects any additional
restructuring to result in further improvements in the credit profile.
Pro forma for the current transactions at March 31, 2007, total debt at
the parent level is anticipated to total approximately US$6.3 billion.

El Paso's ratings also continue to reflect the significant reduction in
business risk in recent years, the benefits of the company's sizable
portfolio of pipeline assets, and the ongoing improvement in the upstream
operations.  Key offsetting factors include the significant leverage that
remains on the balance sheet and lingering issues with the upstream
operations. Of note is that the consent solicitation will remove many of
the negative covenants on any of the EEPC notes that may remain after the
tender.  Furthermore, these covenants are also not included in the new
notes being issued at the El Paso level.

The ratings upgrade at EEPC reflects the significant reduction in debt at
the EEPC level through the current transactions as well as the strong
collateral value for EEPC's $500 million secured credit facility.  Fitch
expects the company to maintain the $500 million senior secured credit
facility at the EEPC level, which is collateralized by the company's
interests in certain upstream properties.  The facility is used to support
the company's hedging program as well as support financing of additional
asset purchases by EEPC, such as the first-quarter 2007 acquisition of
producing and undeveloped properties in Zapata County, Texas for US$254
million.

Fitch affirms these ratings, with a Stable Outlook:

  El Paso Corporation

     -- Issuer Default Rating 'BB+';

     -- US$500 million secured letter of credit facility (2011)
        'BBB-';

     -- US$1.25 billion senior secured revolving credit facility
        (2009) 'BBB-';

     -- US$500 million senior unsecured credit facility (2011)
        'BB+';

     -- Senior unsecured notes and debentures 'BB+';

     -- Perpetual preferred stock 'BB-'.

  El Paso Energy Capital Trust I

     -- Trust convertible preferred securities 'BB-'.

  Colorado Interstate Gas Company

     -- Issuer Default Rating 'BBB-';
     -- Senior unsecured debt 'BBB-'.

  El Paso Natural Gas Company

     -- Issuer Default Rating 'BBB-';
     -- Senior unsecured debt 'BBB-'.

  Southern Natural Gas Company

     -- Issuer Default Rating 'BBB-';
     -- Senior unsecured debt 'BBB-'.

  Tennessee Gas Pipeline Company

     -- Issuer Default Rating 'BBB-';
     -- Senior unsecured debt 'BBB-'.

In addition, the ratings of EEPC have been upgraded as:

  El Paso Exploration & Production Company

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

     -- Senior secured revolving credit facility (2011) to
        'BBB-' from 'BB+';

     -- Senior unsecured debt to 'BB+' from 'BB'.

El Paso owns North America's largest interstate natural gas pipeline
network comprised of approximately 43,000 miles of pipe, 220 billion cubic
feet of storage capacity, and a liquefied natural gas import facility with
1.2 Bcf per day of send-out capacity.  The company's upstream operations
included year-end 2006 estimated reserves of approximately 2.4 billion
cubic feet equivalent of consolidated proven reserves and 222 bcfe of
proven reserves for El Paso's interest in Four Star.  The company has
operations in Argentina.


ESTILO FASHION: Files for Bankruptcy Protection in Court
--------------------------------------------------------
The National Commercial Court of First Instance in Buenos Aires is
studying the merits of Estilo Fashion S.R.L.'s request to enter bankruptcy
protection.

The report adds that that Estilo Fashion filed a "Quiebra Decretada"
petition following cessation of debt payments.

The petition, once approved by the court, will transfer control of the
company's assets to a court-appointed trustee who will supervise the
liquidation proceedings.

The debtor can be reached at:

         Estilo Fashion S.R.L.
         Jose Marti 21
         Buenos Aires, Argentina


FIRST DATA: Completes Acquisition of FundsXpress
------------------------------------------------
First Data Corp. has completed its acquisition of FundsXpress.

The complementary capabilities of First Data and FundsXpress will result
in a broad and robust suite of products for secure electronic commerce and
Internet banking transactions.

Financial terms of the transaction were not disclosed.

                      About FundsXpress

FundsXpress provides online banking and bill payment services for
consumers and small businesses.

                      About First Data

First Data Corp. (NYSE: FDC) -- http://www.firstdata.com/--
provides electronic commerce and payment solutions for businesses
worldwide, including those in New Zealand, the Netherlands and Mexico.
The company's portfolio of services and solutions includes merchant
transaction processing services; credit, debit, private-label, gift,
payroll and other prepaid card offerings; fraud protection and
authentication solutions; electronic check acceptance services through
TeleCheck; as well as Internet commerce and mobile payment solutions.  The
company's STAR Network offers PIN-secured debit acceptance at 2 million
ATM and retail locations.

                       *     *     *

As reported in the Troubled Company Reporter on April 4, 2007,
Standard & Poor's Ratings Services lowered its corporate credit
rating on First Data Corp. to 'BB+' from 'A' and placed it on
CreditWatch with negative implications.  The rating action
followed First Data's agreement to be acquired by Kohlberg
Kravis Roberts & Co. in a transaction valued at about US$29 billion.


HIDROELECTRICA PIEDRA: S&P Puts B Rating on Upcoming Bonds
----------------------------------------------------------
Standard & Poor's Ratings Services today assigned a single 'B' corporate
credit rating to Argentina's 1,400 MW hydropower generator Hidroelectrica
Piedra del Aguila S.A. (HPDA) as well as a single-'B' rating to the
upcoming 10-year fixed-rate bonds for up to US$200 million, due in four
equal installments, beginning in 2014.  The outlook is stable.

The ratings reflect the relatively high political and regulatory risk in
Argentina, HPDA's exposure to potential poor hydrology in Argentina's
southwest region, which would affect its revenues and cash flow
generation, and its currency mismatch between its peso-denominated
revenues and U.S. dollar-denominated debt. However, ratings benefit from
HPDA's solid competitive position as a low-cost generator in the Argentine
market, and its good cash flow generation (adjusted by mandatory capital
expenditures) despite low electricity prices of around US$25 per MWh in
Argentina.  The ratings incorporate a potential increase of the company's
debt in the coming years due to potential investments in the Argentine
power sector.

"The stable outlook reflects Standard & Poor's expectations that HPDA will
enjoy a good cash flow generation in 2007-2009, which could finance
potential new power generation projects in Argentina, which may result in
higher debt levels," noted Standard & Poor's credit analyst Sergio
Fuentes.

"The ratings could improve if the political and regulatory risk
experiences a reduction, which would require actions that improve HPDA's
credit quality," he continued.

Ratings could decrease if HPDA develops new projects that erode the
company's business risk profile and debt service coverage ratios.


KRONOS INC: Acquires Captor; Extends Market Expansion in Europe
---------------------------------------------------------------
Kronos(R) Incorporated has acquired privately held Belgium-based Captor.
Captor is a provider of workforce management solutions serving customers
throughout Europe.  Kronos’ acquisition of Captor brings together two
market leaders with a shared vision to help organizations around the globe
effectively manage their workforce.  Financial terms of the agreement were
not disclosed.

The transaction marks a significant milestone in the execution of Kronos’
global expansion strategy, providing Kronos with an even stronger European
foundation.  This enables Kronos to meet the growing demand as
multinational organizations increasingly turn to the company to manage
their global workforce.  Kronos’ acquisition of Captor also enables the
company to better address the needs of existing local and multinational
customers in the complex European workforce management market.

“Acquiring Captor gives Kronos outstanding European domain expertise and
an established market presence in key geographies,” said Aron Ain, Kronos
chief executive officer.  “By adding Captor’s customer base, representing
multi-lingual, multi-country, and multi-sector deployments, this
acquisition paves the way for Kronos to establish a firm leadership
position throughout Europe.”

The Captor solution is deployed in more than 2,000 organizations, with
installations in countries such as France, Belgium, Germany, Italy,
Luxemburg, the Netherlands, Norway, Portugal, Romania, Spain, and Sweden,
and the UK.  Customers include Arcelor, Banksys, Conseil General de la
Moselle, Departement de l’Eure, Gucci, Leclerc, Leolux, Ministere de
l’Economie et des Finances, Pepsico, Societe Generale, Total Gaz,
Tropicana, and Volkswagen.

Founded in 1987, Captor began as a provider of data collection terminals,
and then expanded into access control devices and time management
terminals.  Realizing the market’s need for workforce management software,
Captor developed a time management and access control software offering,
and has expanded this into a comprehensive workforce management suite
including applications for time and attendance, absence management, and
scheduling.  Today, Captor is a leading European provider of workforce
management solutions.

“Kronos shares Captor’s unwavering focus on customer service excellence.
To that end, Kronos is committed to investing the resources required to
support Captor’s well-established community of customers,” said Jean de
Crane, general manager of Kronos’ Western Europe operations and former
chief executive officer of Captor.  “We have pooled our collective
expertise to form a solid platform on which to continue execution of
Kronos’ global expansion strategy.”

Headquartered in Chelmsford, Mass., Kronos Inc. --
http://www.kronos.com/-- provides a suite of solutions that
automate employee-centric processes, as well as tools to
optimize the workforce.  It provides workforce management
software, including time and attendance software and talent
management (recruiting) software.  The company offers its
products primarily in the United States, Canada, Mexico, the
United Kingdom, Australia, and New Zealand.

The company posts about US$617 million of revenues for the
twelve months ended March 31, 2007.

As reported in the Troubled Company Reporter-Latin America on
May 18, 2007, Moody's Investors Service assigned Kronos, Inc. a
first time B2 corporate family rating and a stable rating
outlook.  Moody's also assigned a first time Ba3 rating to the
company's:

  -- first lien credit facilities (US$665 million term loan,
     due 2014, and US$60 million revolving credit facility,
     expires 2013); and

  -- a Caa1 rating to its US$390 million second lien term loan,
     due 2015.


POLICLINICO LOMAS: Proofs of Claim Verification Ends on Aug. 24
---------------------------------------------------------------
Viviana Judith Feldman, the court-appointed trustee for Policlinico Lomas
Medicina Prepaga S.A.'s reorganization proceeding, is verifying creditors'
proofs of claim until
Aug. 24, 2007.

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

Ms. Feldman will present the validated claims in court as individual
reports on Oct. 5, 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 Policlinico Lomas 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 Policlinico Lomas' accounting
and banking records will be submitted in court on Nov. 16, 2007.

The debtor can be reached at:

         Policlinico Lomas Medicina Prepaga S.A.
         Rivera 302, Lomas de Zamora
         Buenos Aires, Argentina

The trustee can be reached at:

         Viviana Judith Feldman
         Saavedra 497, Lomas de Zamora
         Buenos Aires, Argentina


SADYE SA: Proofs of Claim Verification Ends on July 30
------------------------------------------------------
Jorge Basile, the court-appointed trustee for Sadye SA's bankruptcy
proceeding, is verifying creditors' proofs of claim until July 30, 2007.

The National Commercial Court of First Instance No. 17 in Buenos Aires,
with the assistance of Clerk No. 34, approved a petition for
reorganization filed by Sadye SA, according to a report from Argentine
daily La Nacion.

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

La Nacion did not state the reports submission deadlines.

The debtor can be reached at:

         Sadye SA
         Avenida Belgrano 355
         Buenos Aires, Argentina

The trustee can be reached at:

         Jorge Basile
         Uriburu 782
         Buenos Aires, Argentina


YPF SA: Andina Not Notified by Bolivia on Officials' Extradition
----------------------------------------------------------------
YPF SA's parent Repsol told Bolivian reporters that its Andina subsidiary
didn't received notice from Bolivian authorities of extradition for two of
its executives for alleged illegal hydrocarbons sale.

A Repsol spokesperson told Thomson Financial that Andina wasn't aware of
the supposed extradition that Bolivian prosecutors disclosed on June 13,
2007.

Reporters say that the Santa Cruz prosecutor's office in Bolivia
extradited two executives from Andina for the alleged illegal sale of
hydrocarbons.

Headquartered in Buenos Aires, Argentina, YPF S.A. 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 (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 was negative.


* ARGENTINA: Imposes Fines on Royal Dutch & Petroleo Brasileiro
---------------------------------------------------------------
Argentine reporters say that the Argentine government has fined the local
units of Royal Dutch Shell (RDSA) and Brazilian state oil company Petroleo
Brasileiro SA for allegedly  failing to sufficiently supply diesel fuel.

According to Dow Jones Newswires, government officials were unable to
confirm the news.

A Petroleo Brasileiro spokespeson told Dow Jones that he couldn't
immediately confirm the reports.  Royal Dutch representatives weren't
immediately available.

Dow Jones notes that farm groups have been carping on diesel shortages in
recent weeks as "farmers wrap up record corn and soy harvests and move to
plant wheat."

Diesel shortage complaints have become chronic in recent years, causing
the government to threaten and fine firms.  The government sent Royal
Dutch 23 fines of ARS1 million each in December 2007 for allegedly failing
to meet demand.

                       *     *     *

Fitch Ratings assigned these ratings on Argentina:

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




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


HILTON HOTELS: Enters Into Partnership with Moet Hennessy
---------------------------------------------------------
Hilton Hotels Corp has entered into a partnership with Moet Hennessy Louis
Vuitton, or LVMH, and Spa Chakra, Newratings.com reports.

Newratings.com relates that as agreed, “Hilton Hotels will offer products
and services of LVMH and Spa Chakra at many of its hotels.”

Hilton Hotels told Newratings.com that the partnership will affect:

          -- the Waldorf-Astoria Collection hotels,
          -- Conrad Hotels & Resorts, and
          -- selected Hilton hotels.

Hilton Hotels said that it would associate with the Guerlain and Acqua di
Parma brands of LVMH for spa treatments and related products and services.
Spa Chakra will provide design and operational consulting services to
Hilton Hotels, Newratings.com states.

Headquartered in Beverly Hills, California, Hilton Hotels Corp. --
http://www.hilton.com/--  together with its subsidiaries, engages in the
ownership, management, and development of hotels, resorts, and timeshare
properties, as well as in the franchising of lodging properties in the
United States and internationally, including Australia, Austria, Barbados,
Finland, India, Indonesia, Trinidad and Tobago, Philippines and Vietnam.

                         *     *     *

As reported on May 1, 2007, Standard & Poor's Ratings Services said its
rating and outlook on Hilton Hotels Corp. (BB+/Stable/--) would not be
affected by the company's announcement that it has entered into an
agreement with Morgan Stanley Real Estate to sell up to 10 hotels for
approximately US$612 million in proceeds (net of property level debt
repayment, taxes, and transaction costs).  Upon the close of the
transactions, Hilton Hotels plans to use the net proceeds to repay debt.

Standard & Poor's rating upgrade for Hilton Hotels in March 2007
incorporated the expectation that the company would sell a meaningful
level of additional assets over the near term, which would likely lead to
additional debt reduction.  Still, Standard & Poor's is encouraged by the
expected transaction multiple related to today's announcement.  If the
lodging transaction market remains strong, enabling Hilton Hotels to
generate substantial proceeds from remaining asset sales, if these
proceeds are used for debt reduction, and if the lodging environment
remains strong, an outlook revision to positive could be considered as
2007 progresses.  Any movement signaling the potential for a higher rating
will depend on Hilton Hotels's commitment to maintaining credit measures
aligned with higher ratings over the lodging cycle.

In February 2007, Moody's Investors Service upgraded Hilton Hotels
Corporation's corporate family rating to Ba1 from Ba2 reflecting a
reduction in leverage from a faster than expected pace of asset sales and
strong earnings during 2006.  Adjusted debt to EBITDAR has improved to
around 5.0x from 6.0x in January 2006.




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


SEA CONTAINERS: Wants to Obtain Up to US$176.5-Mil. DIP Loan
--------------------------------------------------------------
Sea Containers, Ltd. and its debtor-affiliates seek authority from the
U.S. Bankruptcy Court for the District of Delaware to borrow and obtain up
to US$176,500,000, pursuant to a postpetition DIP credit facility with
Mariner LCD, Dune Capital LLC, Dune Capital LP, Wells Fargo Bank N.A., as
administrative and collateral agent, and certain other lenders.

                      The Caspian Facility

Mariner and Dune Capital, along with Trilogy Capital LLC and Caspian
Capital Partners LP, had committed on May 3, 2007, to provide Sea
Containers Ltd. with a US$176,500,000 DIP facility.

The Court subsequently authorized the Debtors to enter into the
Caspian Commitment Letter.

However, after engaging in extensive negotiations regarding the
terms of a financing facility, it became clear to the parties
that loan documentation would not be finalized in time to allow
for final Court approval by June 15, 2007, as contemplated under
the May 3 Commitment Letter, according to Robert D. Brady, Esq.,
at Young Conaway Stargatt & Taylor LLP, in Wilmington, Delaware.

Currently, SCL and the DIP Lenders continue to draft and
negotiate on the Secured Superpriority DIP Credit Agreement, Mr.
Brady informs the Court.  "[Those] documents are nearly
finalized."

As of June 8, 2007, SCL and the DIP Lenders, including Wells
Fargo, have prepared a draft DIP Agreement, Mr. Brady tells the
Court.

Mr. Brady adds that the Debtors deem it important to file their
DIP Motion at this time as the lenders under the SPC debt
securitization facility are threatening to foreclose their liens
in Sea Containers SPC Ltd.'s assets if they are not repaid by
June 30, 2007.

                   The Wells Fargo Facility

Under the New DIP Facility, Marine and Dune Capital will provide
SCL with a term loan of up to US$151,500,000, and a US$25,000,000
revolving credit facility.

Trilogy Capital will no longer be a lender under the New DIP
Facility, but is anticipated to take a participation interest in
the DIP Facility.

Wells Fargo will serve as the administrative and collateral agent under
the New DIP Facility.

The Term Loan provides for a non-amortizing term loan available
in a single drawing on the Closing Date.

The Debtors intend to use the proceeds of the Term Loan to make a capital
contribution to SPC Holdings Ltd., a non-debtor
subsidiary of which SCL holds the entire economic interest.   In
turn, Holdings will make a capital contribution to Sea Containers SPC, a
"bankruptcy remote" subsidiary.  SPC will then use the proceeds of the
capital contribution to repay an existing debt securitization facility.

"The repayment of the securitization facility will prevent
foreclosure by SPC's lenders, which have alleged a default under
that facility," Mr. Brady notes.

In addition, the Term Loan will also be used to pay all costs and expenses
of the DIP Lenders and the DIP Agent relating to the structuring of the
proposed financing for SCL or SPC.

On the other hand, the proceeds of the Revolving Credit Facility
will be used for SCL's general corporate purposes in the ordinary course
of business.

                         Interest Rates

The rate of interest per annum with respect to the unpaid amount
of all DIP Loans will be the Eurodollar Rate for the relevant
Interest Period plus the Applicable Margin.  Non-Default Rate
interest on the DIP Obligations will be payable monthly in
arrears.

The annual interest rate to the unpaid amount of all DIP Loans
during the continuance of an Event of Default will be the one-
month Eurodollar Rate, calculated daily, plus the Applicable
Margin plus 2.0%.

With respect to the unpaid amount of all other DIP Obligations
during the Event of Default, the annual interest rate is the
default rate that would be applicable to Revolving Credit Loans.
The Default Rate interest on the DIP Obligations will be payable
in cash on demand and will be compounded daily.

Events of Default under the Wells Fargo DIP Facility include
customary events of default for DIP financings.

                          Collateral

The DIP Obligations of SCL under the Wells Fargo Facility will be secured
by a perfected, first priority security interest and lien on:

   (i) SCL's equity interests in Holdings and SPC;

  (ii) all of SCL's cash and cash equivalents; and

(iii) all amounts received or receivable by SCL from Holdings
       and SPC.

Holdings will guarantee the full payment of SCL's DIP Obligations when it
comes due.

The Guarantee will be secured by a perfected, first priority
security interest in all Holdings' assets.  The amount of the
Guarantee, however, will be limited to the value of Holdings'
assets at the time the guarantee is given.

All DIP Obligations will be granted a superpriority
administrative expense claim with priority over all other costs
and expenses of any kind.  The DIP Lenders' superpriority
administrative expense claim will be payable from all of the
Debtors' properties.

As additional protection, SCL agree not to seek any order that
attempts to grant any other party a superpriority claim or
otherwise subordinate the DIP Obligations or the DIP Lien.

                             Fees

SCL will pay all costs and expenses of the DIP Lenders and the
DIP Agent relating to the structuring of the proposed financing
for SCL or SPC.

SCL will pay a refinancing fee equal to 1.0% of the aggregate
amount of the cash proceeds of the Term Loan on the Closing Date.  Under
the DIP Credit Agreement, refinancing is defined as the repayment or
replacement of the DIP Obligations.

SCL will also pay a non-emergence fee on the one-year anniversary of the
DIP Effective Date, in an amount equal to 1.0% of the aggregate principal
amount then outstanding under the DIP Facility, unless all outstanding DIP
Obligations have already been fully paid.

An unutilized commitment fee will be paid by SCL at an annual
rate of 1.0% on the average daily unused portion of the Revolving Credit
Facility, which is payable monthly in arrears.

                         Carve-Out

The DIP Lien and the superpriority status of the DIP Obligations
will be subject only to the payment of Court-approved
professionals for:

  (i) for all unpaid allowed fees and expenses with respect to
      fee applications filed prior to certain termination events
      in the DIP Financing; and

(ii) for up to a maximum of US$10,000,000 for allowed fees and
      expenses not filed prior to, or incurred after, certain
      termination events in the DIP Financing.

                      Termination Date

The DIP Credit Agreement will terminate on the earlier of:

   (i) all the DIP Obligations are paid in full;
  (ii) SCL's plan of reorganization is confirmed;
(iii) the DIP Obligations are accelerated;
  (iv) a Sale Order for all of SCL's assets is entered;
   (v) the Debtors' cases are converted into a Chapter 7 case;
       or
  (vi) the date that is two years after the Closing Date.

A full-text copy of the of the Wells Fargo Draft DIP Agreement is
available for free at:

              http://researcharchives.com/t/s?20e1
              http://researcharchives.com/t/s?20e2
              http://researcharchives.com/t/s?20e3

                 The DIP Facility is Necessary
                to Preserve the Debtors' Assets

The Debtors assert that the DIP Lenders' proposal is beneficial
to their estates as it offers attractive financing terms,
including no cash up-front fees or break-up fees.  The proposal
also provides a solution to the Debtors' dispute with the
Noteholders.

Moreover, the DIP Lenders' proposal will allow the Debtors to
lock in permanent financing, which will enable them to focus on
efforts going forward on key restructuring initiatives and
developing a confirmable Chapter 11 plan, Mr. Brady contends.

The Court will convene a hearing on June 26, 2007, to consider
the Debtors' request to approve the Wells Fargo DIP Facility.

Any party-in-interest who opposes the request must file a formal
objection with the Court by June 19, 2007.

                     About Sea Containers

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

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

Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady,
Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at
Young, Conaway, Stargatt & Taylor, represent the Debtors in their
restructuring efforts.

The Official Committee of Unsecured Creditors and the Financial
Members Sub-Committee of the Official Committee of Unsecured
Creditors of Sea Containers Ltd. is represented by William H.
Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris,
Nichols, Arsht & Tunnell LLP.  Sea Containers Services, Ltd.'s
Official Committee of Unsecured Creditors is represented by
attorneys at Willkie Farr & Gallagher LLP.

In its schedules filed with the Court, Sea Containers Ltd.
disclosed total assets of US$62,400,718 and total liabilities of
US$1,545,384,083.  (Sea Containers Bankruptcy News, Issue No. 18;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


SEA CONTAINERS: U.S. Trustee Appoints HSBC to Creditors' Panel
--------------------------------------------------------------
Kelly Beaudin Stapleton, the United States Trustee for Region 3, has
informed the U.S. Bankruptcy for the District of Delaware that HSH
Nordbank AG has resigned from the Official Committee of Unsecured
Creditors of Sea Containers, Ltd., and its debtor affiliates.

The U.S. Trustee has appointed HSBC Bank USA, National Association, in its
capacity as indenture trustee, to fill in the vacant post.

The Creditors Committee is now composed of:

  1. HSBC Bank USA, National Association
     452 Fifth Avenue
     New York, NY 10018-2706
     Attn: Sandra E. Horwitz
     Phone: (212) 525-1358
     Fax: (212) 525-1300

  2. Trilogy Capital LLC
     2 Pickwick Plaza
     Greenwich, CT 06830
     Attn: Barry D. Kupferberg
     Phone: (203) 971-3420
     Fax: (203) 971-3499

  3. Dune Capital LLC
     c/o Dune Capital Management LP
     623 Fifth Avenue, 30th Floor
     New York, NY 10022
     Attn: Andrew B. Cohen
     Phone: (212) 301-8308
     Fax: (646) 885-2473

  4. Mariner Investment Group, Inc.
     500 Mamaroneck Avenue, Suite 101
     Harrison, NY 10528
     Attn: Adam S. Cohen
     Phone: (914) 798-4234
     Fax: (914) 777-3363

                     About Sea Containers

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

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

Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady,
Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at
Young, Conaway, Stargatt & Taylor, represent the Debtors in their
restructuring efforts.

The Official Committee of Unsecured Creditors and the Financial
Members Sub-Committee of the Official Committee of Unsecured
Creditors of Sea Containers Ltd. is represented by William H.
Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris,
Nichols, Arsht & Tunnell LLP.  Sea Containers Services, Ltd.'s
Official Committee of Unsecured Creditors is represented by
attorneys at Willkie Farr & Gallagher LLP.

In its schedules filed with the Court, Sea Containers Ltd.
disclosed total assets of US$62,400,718 and total liabilities of
US$1,545,384,083.  (Sea Containers Bankruptcy News, Issue No. 18;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)




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


TRILOGY INTERNATIONAL: Moody's Puts B2 Corporate Family Rating
--------------------------------------------------------------
Moody's Investors Service assigned a B2 corporate family rating and B2
senior secured rating to Trilogy International Partners LLC.

The ratings reflect a B2 probability of default and a loss-given-default
assessment of LGD4, 51% on the senior secured term loan.  The outlook is
stable.  This is the first-time Moody's has assigned ratings to Trilogy.

The B2 corporate family rating reflects Moody's view that Trilogy's
political/ regulatory risks are considerable given essentially all of its
revenues are derived from wireless operations in emerging economies
(Haiti, Bolivia, and the Dominican Republic), with the majority of its
(EBITDA -- Capex) cash flows generated from Haiti, a region with a history
of significant instability.  The rating also considers that a reasonable
portion of the company's cash flows are generated in U.S. dollars, which
partially mitigates foreign exchange risks arising from having to service
U.S denominated debt obligations with local cash flows, which can't be
effectively hedged.  The rating also considers Trilogy's favorable growth
prospects within each of these three countries given the relatively low
levels of wireless penetration currently, its favorable competitive
position demonstrated by a current blended market share of roughly 20% and
a modest diversification of country risk.  Finally, the B2 rating
incorporates Moody's opinion that the company's initial adjusted total
leverage of roughly 2.5x may reduce to under 2x by the end of 2008 but
that free cash flow through the next couple of years is unlikely to be
robust as capital expenditures remain elevated.

Assignments:

   * Issuer: Trilogy International Partners LLC

     -- Probability of Default Rating, Assigned B2;

     -- Corporate Family Rating, Assigned B2;

     -- Senior Secured Bank Credit Facility, Assigned a range of
        51 - LGD4 to B2.

The stable outlook reflects Moody's belief that Trilogy is likely to
steadily grow its operating profits through the next couple of years, but
that free cash flow is likely to remain modest through this period.
Additionally, the stable outlook considers Moody's view that Trilogy is
likely to continue to diversify its risks away from Haiti, but that cash
flows from this country will remain significant for the foreseeable
future.

Moody's noted that the proceeds of the US$200 million term loan will be
used to refinance the company's existing funded debt and for general
corporate purposes.

Based in Bellevue, Washington, Trilogy International Partners LLC provides
wireless communication services to 1.8 million subscribers in Haiti,
Dominican Republic and Bolivia.




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


BANCO NACIONAL: Grants BRL18.9-Million Financing to Metasa SA
-------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social aka BNDES' board of
directors approved a BRL18.9 million financing to Metasa S.A Industria
Metalurgica for investments to expand the production capacity of its unit
in Marau (RS).

BNDES support corresponds to 68% of the total investment, for the amount
of BRL36.2 million.  With the implementation of this project, company
production of metallic structures should increase from the current 59.9
thousand tons to 67 thousand tons per year creating 25 new job posts in
the region.

With this expansion, Metasa will have better conditions to organize its
industrial process in the structure production, pre-assembly and final
assembly and standardization of production and finishing lines, which will
allow it to attend 100% of the already contracted demand.  Furthermore,
the rationalization of the production process will have impacts on cost
reduction besides allowing additional efficiency and competitiveness.

Metasa operates in the manufacturing of large-size metallic structures and
has, since 2005, invested in the capacitation of its employees and in
machines and equipment to manufacture structures for large oil exploration
platforms, being qualified to work with Petrobras.

                        About Metasa

Incorporated in 1975, Metasa is a closed capital corporation, with plants
in Marau (RS) and Santo Andre (SP), dedicated to the manufacturing of
heavy metallic structures and components.  Metasa supplied products for
the construction of shopping centers in the States of Rio Grande do Sul
and Santa Catarina, besides Uruguay and Argentina.  The company has
recently participated in the construction of flyovers, viaducts,
thermoelectric power plants, cellulose plants, refineries, ports, offshore
platforms and roadways - Linha Amarela [Yellow Line] and Vermelha [Red
Line] (RJ) and Expresso Tiradentes (SP).

                         About BNDES

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

                        *     *     *

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


ELETROPAULO METROPOLITANA: Fitch Affirms BB- Default Ratings
------------------------------------------------------------
Fitch Ratings has affirmed these ratings of Eletropaulo Metropolitana
Eletricidade de Sao Paulo S.A.:

     -- Local currency Issuer Default Rating 'BB-';

     -- Foreign currency Issuer Default Rating 'BB-';

     -- Long-term national scale rating 'A(bra)';

     -- Senior unsecured notes due 2010 'BB-';

     -- Bank credit certificate (cedula de credito bancario
        - CCB) due 2015: 'A(bra)';

     -- Eighth issuance of debentures due 2010 'A(bra)';

     -- Ninth issuance of debentures due 2013 'A(bra)'.

The Rating Outlook on Eletropaulo's foreign and local currency IDRs,
senior unsecured notes and long-term national scale rating is Stable.

The ratings of Eletropaulo reflect its adequate financial profile,
moderate leverage and manageable debt levels.  In the past three years,
free cash flow has enabled Eletropaulo to reduce leverage and improve its
financial flexibility.  The assessment also considers the moderate
regulatory risk for the electric power sector and expectations that growth
in the Brazilian economy will favor increased demand for power produced by
Eletropaulo, whether to its captive market or to unrestricted consumers
doing business in its concession region.  Eletropaulo holds the concession
for power distribution in a high per capita income area that is expected
to benefit from improvement in the economic environment.  Given the
limited time the new model for the power sector has been in effect,
regulatory risk still exists, but the model's new rules have so far been
efficient. With respect to hydrological risk, Fitch does not foresee
imbalances between energy supply and demand before the end of 2008.

The ratings also reflect the relative uncertainty associated with a
potential change in ownership due to the recent announcement by the
Brazilian National Development Bank, Banco Nacional de Desenvolvimento
Economico e Social, to sell its interest in Companhia Brasiliana de
Energia and exercise its drag along clause to force AES Group to sell its
participation together, if it does not use its preference right.

Eletropaulo's 2007 rate adjustment is expected to reduce its operational
cash generation capacity, but even so, it should remain adequate for debt
service, investments and dividend distributions.  In May 2007, the
National Electric Energy Agency signaled a preliminary negative rate
adjustment of 5.4%, which could be changed before the July 4, 2007,
implementation date. The negative index is expected to decrease the
company's EBITDA and reflects a combination of Eletropaulo's investments
of the past four years, which were below its regulatory depreciation, the
new benchmark parameters established for Eletropaulo and a reduction in
the average weighted cost of capital from 11.26% to 9.95%.  Fitch believes
that Eletropaulo will be able to obtain new efficiency gains following its
rate revision and increase its operational cash flow over the next four
years.

Eletropaulo has improved its debt profile, lengthening its average
maturities and reducing its financial cost.  Cash flow will benefit in the
next two years from Eletropaulo's stretching of payments to the CESP
Foundation.  It owes the pension fund approximately 2.4 billion Brazilian
reals, which represented 52% of adjusted total debt at March 2007.
Eletropaulo obtained extensions on the payments for 2008 and 2017 until
2022 under two agreements it has with the CESP Foundation.  This is
expected to reduce disbursements by approximately BRL600 million by
December 2008.  The average financial cost was reduced from 15.8% in 2005
to 13.8% in 2006 and 13.1% in first quarter 2007 Q1-07. The average debt
maturity rose from 3.7 years in 2005 to 5.5 years as of March 2007.  In
May 2007 the company restructured a bank credit certificate, resulting in
a reduction in the spread paid over the interbank certificate of deposit
rate from 1.8% to 1.2% and stretching the final maturity for an additional
two years.  Other actions designed to further improve the debt profile are
anticipated.

Eletropaulo's financial profile is consistent with its rating category.
Leveraging is moderate and has declined in recent years.  The rate
adjustments obtained enabled an average annual growth in net revenue of
8.9% from 2003 to 2006, with net sales of BRL8.1 billion for the 12 months
ended March 2007.

Efficiency gains enabled EBITDA growth to accompany that of net revenue,
with an average annual growth of 18% from 2003 to 2006. For the 12 months
ended March 2007, EBITDA totaled BRL1.7 billion and generated a margin of
21%, in line with other distributors.  On an adjusted basis, excluding
extraordinary, non-recurring items, Eletropaulo reported an adjusted
EBITDA of BRL2.1billion for the 12 months ended March 2007, versus BRL2.2
billion in 2006 and BRL1.8 billion in 2005.  The total adjusted
debt/EBITDA ratio was 2.6 times at March 2007 and December 2006, versus
4.2x in 2005.  The adjusted EBITDA ratios were 2.2x, 2.2x and 2.5x,
respectively.  Based on the rate revision, the company is expected to
present a more leveraged capital structure in 2007 and 2008, with a total
adjusted debt/EBITDA ratio above 3x. Thereafter, credit protection
indicators are expected to return to more conservative levels, supported
by maintenance of a cash flow capable of amortizing debt, as well as a
lower financial cost, greater efficiency and a more favorable economic
environment.

Regulatory risk remains moderate.  In 2004, Brazil approved a new model
for the power sector, providing a degree of certainty with respect to rate
adjustments and stabilizing the risk of the business.  In particular, the
distribution segment became a regulated monopoly, with the regulatory
model providing for maintenance of the economic and financial soundness of
the concessionaires.  The new model requires distributors to contract a
minimum of 100% of its expected energy demand for the next five years,
whose cost is passed on to end consumers, up to the limit of 103% of the
demand foreseen.  Deviations in demand projected can be compensated for
through adjustment mechanisms created to avoid penalties for the
companies.  The new rules also foresee passing on the full amount of
non-controllable costs, enabling a reduction in operational risks and
greater predictability in the performance of the energy distribution
business.  During the last three years, the company has received rate
adjustments sufficient to maintain a satisfactory cash flow generation.
Revenue and adjusted EBITDA were positively affected by the average rate
increases of 18% in July 2004, 2.1% in July 2005, and 11.5% in July 2006.

Eletropaulo is controlled by Brasiliana, which, in turn, belongs to AES
Holdings Brasil Ltda. (50.01% of the common shares) and BNDES (49.99% of
the common shares and 100% of the preferred shares).  BNDES has indicated
that it no longer wishes to participate in Brasiliana's capital and is in
the process of selling its holding.  The shareholder agreement between the
AES Group and BNDES has a drag along clause, under which BNDES can require
the AES Group to also sell its shares in Brasiliana. BNDES has indicated
its intention to exercise this right.  The possibility of the AES Group's
retaining control of Brasiliana is limited to its right of first refusal
on a firm purchase offer made to BNDES.

In the event the AES Group also sells its shares, it is not known how the
business will be conducted in the future, but it is probable that large
groups in the sector will acquire the participations.  In addition to an
estimated expenditure of BRL6 billion to purchase 100% of Brasiliana, the
potential buyer could also face further disbursements, principally based
on the tag along for Eletropaulo's minority shareholders.  It will also
have to deal with a potential accelerated maturity of BRL2.6 billion in
Eletropaulo and Brasiliana debts.

Eletropaulo is the largest energy distributor in Brazil in terms of
revenue.  Eletropaulo operates in 24 cities in the metropolitan region of
Greater Sao Paulo having distributed
31,656 gigawatt-hours to its captive market in 2006.


GERDAU AMERISTEEL: Pacific Coast Buys Steel Contractor Business
---------------------------------------------------------------
Gerdau Ameristeel Corporation's joint venture, Pacific Coast Steel (PCS),
has agreed to purchase the assets of Valley Placers, Inc., a reinforcing
steel contractor in Las Vegas, Nevada. The transaction is expected to
close in the next 30 days.  Terms of the transaction were not disclosed.

In addition to contracting activities, VPI operates a steel fabrication
facility and retail construction supply business in Las Vegas.  VPI
currently employs more than 110 field ironworkers and specializes in
smaller commercial, retail and public works projects.

"Our participation in the Las Vegas market has increased considerably in
the past nine months," remarked Eric Benson, President of PCS.  "Valley
Placers gives us the local presence needed to support our growth and will
provide us immediate access to a broader range of market opportunities
here."

J. Neal McCullohs, Vice President of Commercial and Downstream
Operations for Gerdau Ameristeel commented, "This further supports our
approach to strategically grow our downstream operations in the West.  VPI
can be supported by our recently purchased mill in Oklahoma, and will
easily roll into the PCS organizational structure."

Gerdau Ameristeel -- http://www.gerdauameristeel.com/-- (NYSE:
GNA; TSX:GNA.TO) is the second largest minimill steel producer
in North America with annual manufacturing capacity of over 9
million tons of mill finished steel products.  Through its
vertically integrated network of 17 minimills (including one
50%-owned joint venture minimill), 17 scrap recycling facilities
and 51 downstream operations (including seven joint venture
fabrication facilities), Gerdau Ameristeel serves customers
throughout North America.  The company's products are generally
sold to steel service centers, to steel fabricators, or directly
to original equipment manufacturers for use in a variety of
industries, including construction, automotive, mining, cellular
and electrical transmission, metal building manufacturing and
equipment manufacturing.  The company is a subsidiary of
Brazil's Gerdau SA.

                            *    *    *

As reported in the Troubled Company Reporter-Latin America on
May 16, 2007, Standard & Poor's Ratings Services raised its corporate
credit rating on Tampa, Florida-based Gerdau Ameristeel Corp. to 'BB+'
from 'BB' and removed all ratings from CreditWatch, where they were placed
with positive implications on Jan. 17, 2007.

S&P also raised its rating on the company's senior unsecured debt to 'BB+'
from 'BB'.  S&P said the outlook is stable.


LOJAS COLOMBO: S&P Affirms B Rating with Stable Outlook
-------------------------------------------------------
Standard & Poor's Ratings Services said today that it affirmed its 'B'
long-term corporate credit ratings on Lojas Colombo S.A., the
fifth-largest retail chain in Brazil, and its 'B' rating on the company's
two-year-term, US$50 million Eurobonds due December 2007.  The outlook is
stable.

"The ratings on Colombo reflect the fierce competition from larger retail
and supermarket chains; the consequent lower-than-average operating profit
margins; the strong correlation of its operating performance to Brazil's
unstable demand patterns and consumers' limited purchasing power; and the
challenges presented by the company's growth strategy," said Standard &
Poor's credit analyst Eduardo Chehab.  These negative factors are partly
offset by Colombo's strong regional position in Southern Brazil,
especially in the state of Rio Grande do Sul; its good track record of
operations under a historically volatile economic environment; and the
positive results of its consumer credit operations, which shall be boosted
by the partnership with Banco Bradesco S.A. (Bradesco; BBB-/Positive/A-3).

Colombo operates a chain of 338 stores, which obtained consolidated net
revenues of US$428 million and EBITDA of US$14 million in 2006.  The
segment in which the company operates -- home appliances, IT equipment,
and furniture -- is highly competitive, with leaders such as Casas Bahia,
Ponto Frio, and Magazine Luiza holding higher bargaining power with the
main suppliers.  The operating margins of Colombo's retail activity have
been negative in the past two years, offset by the good results of its
consumer financing activity through its subsidiary Credifar S.A. (not
rated).

The company sold 50% of its consumer financing business to Bradesco in May
2006, for a total of US$110 million, capitalized in May 2007 soon after
approval by the Central Bank.  Through this partnership, Bradesco will
provide all the funding for Credifar's credit operations, at more
attractive pricing conditions than Colombo's previous cost of funding.
While most of the largest retailers in the country have established
similar agreements, the partnership with the largest local private bank
provides Colombo with a significant competitive advantage against small
and midsize players, improving its overall financial position by releasing
working capital.

The company's growth strategy poses some additional
difficulties as it attempts to penetrate other regions of the country.  It
is challenged to replicate its performance in its traditional markets in
new and more competitive environments.  The short track record of
operations in Sao Paulo and Minas Gerais has been a challenge for Colombo,
with operating margins still below those reported by its Southern
operations.

The stable outlook reflects our expectation that Colombo will be able to
gradually enhance the profit margins in the retail activity in coming
months, leading to more sustainable cash flow coverage metrics.

A positive change in the ratings and outlook would depend on Colombo's
capacity to deliver better-than-expected scale gains both in its retail
and financial operations, attaining higher profitability level (EBITDA),
while maintaining a prudent expansion plan and an adequate liquidity
position.

The ratings could be under pressure if Colombo fails to improve its
profitability levels and overall credit metrics in accordance with its
current ratios.  The ratings could also be negatively affected under
certain stress scenarios stemming from country risk, as Colombo's
operating performance is highly sensitive to the levels of consumers'
confidence and purchasing power.


PETROLEO BRASILEIRO: In Talks with Producers on Ethanol Price
-------------------------------------------------------------
Brazilian state-owned oil firm Petroleo Brasileiro SA Chief Financial
Officer Almire Barbassa told reporters that the company is negotiating
with producers to set a price range for ethanol.

Mr. Barbassa said in a press conference in Rio de Janeiro, "We're
discussing fixing a maximum and minimum value for ethanol prices.  One of
the most complex issues is establishing a price that does not negatively
affect buyers and sellers."

Mr. Barbassa told Business News Americas that Petroleo Brasileiro's main
goal is to guarantee that ethanol producers will get a fair price.  The
firm also aims to ensure supply.

Petroleo Brasileiro said it is creating a seal of quality for ethanol
shipped from Brazil, BNamericas relates.

BNamericas notes that Petroleo Brasileiro wants to ensure quality and make
sure that suppliers comply with labor laws.

"Petrobras [Petroleo Brasileiro] is a socially aware company. The ethanol
we sell will come with a seal of quality," Mr. Barbassa told BNamericas.

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

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

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

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

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


PETROLEO BRASILEIRO: Mulls Hiring Regasification Vessel
-------------------------------------------------------
Brazilian state-run oil firm Petroleo Brasileiro SA Chief Executive
Officer Jose Sergio Gabrielli told reporters that the company is
considering hiring another liquefied natural gas regasification vessel.

According to Business News Americas, Mr. Gabrielli said during a speech in
Brasilia that the vessel would add to two liquefied natural gas storage
and regasification vessels hired from UK independent operator Golar LNG.

Mr. Gabrielli explained to BNamericas that the third vessel would have
regasification capacity of 14 million cubic meters per day.

BNamericas relates that the first vessel will start operating in the first
half of 2008 in Ceara.  The second vessel will operate in 2009 in Rio de
Janeiro.

Mr. Gabrielli didn't tell BNamericas where the third vessel would be used.

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

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

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

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

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


PETROLEO BRASILEIRO: Argentina Fines Firm for Fuel Insufficiency
----------------------------------------------------------------
Argentine reporters say that the Argentine government has fined the local
units of Royal Dutch Shell (RDSA) and Brazilian state oil company Petroleo
Brasileiro SA for allegedly  failing to sufficiently supply diesel fuel.

According to Dow Jones Newswires, government officials were unable to
confirm the news.

A Petroleo Brasileiro spokespeson told Dow Jones that he couldn't
immediately confirm the reports.  Royal Dutch representatives weren't
immediately available.

Dow Jones notes that farm groups have been carping on diesel shortages in
recent weeks as "farmers wrap up record corn and soy harvests and move to
plant wheat."

Diesel shortage complaints have become chronic in recent years, causing
the government to threaten and fine firms.  The government sent Royal
Dutch 23 fines of ARS1 million each in December 2007 for allegedly failing
to meet demand.

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.


REXAM PLC: Moody's Puts (P)Ba2 Rating on Proposed Securities
------------------------------------------------------------
Moody's Investors Service assigned a provisional (P)Ba2 rating to the
proposed issuance of capital securities by Rexam Plc rated Baa3 for senior
unsecured debt.

The assigned rating and the basket designation will be subject to
satisfactory final documentation.  The outlook for the ratings is stable.

The capital securities will, in Moody's view, have sufficient equity-like
features to allow it to receive basket "D" treatment, i.e. 75% equity and
25% debt, for financial leverage purposes.  This basket designation will
shift from "D" to "C" (i.e. 50% equity and 50% debt) in 2017 and will be
basket "C" for the next 20 years.  Thereafter the instruments will shift
to basket "B" (i.e. 25% equity and 75% debt) for the next 10 years and
basket "A" (i.e. 0% equity and 100% debt) for the last 20 years.  The
basket allocation is based on the following rankings for the three
dimensions of equity:

No Maturity -- Moderate: The bonds will have a maturity of 60 years and a
first call option by the issuer in whole commencing in the 10th year.
Prior to the first call date, the issuer has the right to redeem the bonds
upon a tax, capital or accounting event.  If called, the company intends
to redeem the capital securities only with the proceeds from the issuance
or sale of ordinary shares or replacement securities within a period of
six months prior to the redemption date.  Replacement securities must have
equal or greater equity credit than the capital securities.  In a change
of control event, the company can redeem the securities; otherwise, the
coupon rate increases by 500 basis points.  Senior note holders are
similarly protected as the company will make a tender offer for
outstanding senior notes at par.

No Ongoing Payments -- Strong: There is cumulative optional deferral and
mandatory deferral of distributions is tied to the breach of a meaningful
trigger, which is defined as the ratio of adjusted net debt to adjusted
EBITDA above 5.5x at the determination date or 4.5x at four consecutive
determination dates.  If the trigger is breached, distributions will be
immediately settled with the proceeds from the issuance of qualifying
securities, such as ordinary shares, warrants or eligible securities,
which cannot exceed 25% of the principal amount.  In bankruptcy, any
unpaid distributions in excess of the 25% cap will rank equally with
common shares.  The company is not allowed to repurchase shares within 12
months after the deferral.

Loss Absorption -- Strong: This instrument is the most subordinated debt
in the capital structure.  Holders have no acceleration rights in
bankruptcy.

The capital securities have been notched downward twice from the senior
unsecured rating in practice with corporate issuers in Europe with a third
notch being capped in line with Moody's methodologies for all issuers
rated Ba2 and above.

Rexam Plc is a leading consumer packaging company and is the world's
largest aluminium beverage can producer.  Headquartered in the U.K., the
company had 24,200 employees as of fiscal year 2006, 100 plants in 20
countries, including Brazil and Indonesia and generated revenues of GBP3.7
billion.


UTSTARCOM INC: Defers 10-Q & 10-K Filing with U.S. SEC
------------------------------------------------------
UTStarcom Inc. received on May 31, 2007, a notice of default from U.S.
Bank National Association, as indenture trustee, pursuant to which the
Trustee asserted that the Company was in default of certain obligations
under the Indenture, dated as of March 12, 2003, by and between the
Company, as issuer, and the Trustee, as trustee, as amended by the First
Supplemental Indenture, by and between the Company and the Trustee, dated
Jan. 9, 2007, with respect to the Company’s 7/8% Convertible Subordinated
Notes due 2008.

The specific purported defaults referred to in the Notice of Default are:

   (i) the Company’s failure to file with the U.S. Securities
       and Exchange Commission and file with the Trustee
       its Quarterly Report on Form 10-Q for the fiscal
       quarter ending Sept. 30, 2006, its Annual Report on
       Form 10-K for the fiscal year ended Dec. 31, 2006
       and its Quarterly Report on Form 10-Q for the
       fiscal quarter ending March 31, 2007 , as required by
       the Indenture and the Trust Indenture Act and

  (ii) the Company’s failure to deliver to the Trustee
       the officer’s certificate of compliance of the
       Company required by the Indenture.

As previously disclosed in the Company’s Current Report on Form 8-K filed
Jan. 10, 2007, pursuant to the Supplemental Indenture, any failure by the
Company to comply with covenants in the Original Indenture relating to the
filing of reports required to be filed with the SEC under the Securities
Exchange Act of 1934, as amended and the furnishing of copies of SEC
Reports and the officer’s certificate of compliance of the Company
required by the Original Indenture to the Trustee before 5:30 p.m., New
York City time, on May 31, 2007, would not constitute a default under the
Indenture.  The Notice of Default states that the Covenant Reversion Date
provided for by the First Supplemental Indenture had passed and that the
Company’s failure to cure the purported defaults within 60 consecutive
days after the date of the Notice of Default, would constitute an “Event
of Default” under the Indenture.

The Company previously reported in its Notifications of Late Filing on
Form 12b-25 filed on Nov. 11, 2006, March 2, 2007 and May 10, 2007, that
the filing of the Q3 2006 10-Q, the 2006 Form 10-K and the Q1 2007 10-Q
had been delayed for the reasons stated therein.

The Company does not believe it is currently in default under the
Indenture.  However, if the Company’s interpretation of the Indenture is
incorrect and a default has occurred under the Indenture and if such
default is not cured by the Demand Date, an “Event of Default” will have
occurred under the Indenture.  The occurrence of an “Event of Default”
under the Indenture would afford the Trustee or holders of not less than
25% in aggregate principal amount of outstanding Notes the right to
declare the full principal amount of all outstanding Notes to be
immediately due and payable.  The Company cannot be certain that it will
be able to file all required reports with the SEC by the Demand Date.
Furthermore, the Company cannot be certain that consents from holders of
the Notes necessary for an additional waiver of its obligations to comply
with the Indenture covenants within the required period can be obtained on
reasonable terms.

The Company does not currently have sufficient cash reserves outside of
China to pay the principal amount of the Notes, which obligations may
become immediately due if an Event of Default were to occur and the
trustee or holders of not less than 25% in aggregate principal amount of
outstanding Notes were to declare the full principal amount of all
outstanding Notes to be immediately due and payable.  Because the Company
is limited by the Chinese government’s imposition of currency exchange
controls on transfer of funds outside of China, it may be time-consuming,
difficult and/or expensive for the Company to transfer funds from China to
repay the Notes.

As a result, if an Event of Default on the Notes were to occur, the
Company may not have sufficient cash resources to repay the Notes and to
continue operations without seeking new financing arrangements.  The
Company cannot be certain that additional financing for these purposes
would be available on acceptable terms or at all, and if such financing is
not available, the Company’s business could be seriously harmed.

Headquartered in Alameda, Calif., UTStarcom Inc. (Nasdaq: UTSI)
-- http://www.utstar.com/-- provides IP-based, end-to-end
networking solutions and international service and support.  The
company sells its broadband, wireless, and handset solutions to
operators in both emerging and established telecommunications
markets around the world.  The company maintains operations in
France, Italy, Spain, China, India, Japan, Argentina and Brazil.


UTSTARCOM INC: Ends Strategic Alternatives Process; EVP Resigns
---------------------------------------------------------------
The special committee of UTStarcom Inc.'s board of directors has concluded
its assessment of strategic alternatives.

"After careful consideration of a number of short- and long-term
alternatives, we have determined that our best course of action is to move
forward with the company as it exists today,"  Thomas Toy, chairman of
UTStarcom's board of directors, said.  "Our stated goal when we commenced
the strategic alternatives process in October 2006 was to explore
potential options to maximize the company's value for UTStarcom's
shareholders.  In exploring those alternatives, we concluded that the
optimal means of enhancing shareholder value is to focus our efforts on
returning the company to profitability by building on the opportunities we
have developed in key markets around the world."

In addition, Ying Wu’s employment relationship with UTStarcom and its
subsidiaries terminated.  Prior to such termination,
Mr. Wu served as the company’s Executive Vice President, Vice Chairman of
the Board of Directors and the Chairman and Chief Executive Officer of one
of the company’s subsidiaries, UTStarcom China Co. Ltd.

Pursuant to the terms of the Amended and Restated Change of
Control/Involuntary Termination Severance Agreement dated
Nov. 14, 2006 between the company and Mr. Wu,

   (i) Mr. Wu will receive 12 months of base salary as in
       effect as of the date of the termination, payable in
       a lump sum within 30 days of termination, and 100% of
       the bonus for the year in which termination occurs,

  (ii) all equity awards, including without limitation
       option grants, restricted stock and stock
       purchase rights, granted to Mr. Wu will become
       fully vested and/or exercisable to the extent such
       equity  awards are outstanding and/or unexercisable
       at the time of the termination,

(iii) Mr. Wu will be permitted to exercise such vested
       equity awards for the shorter period of

         (a) 12 months from the date of termination and

         (b) the remaining term of the respective equity
             awards, and

  (iv) the company will continue to provide Mr. Wu the
       same level of health coverage as in effect on the
       day immediately preceding the termination date until
       the earlier of the date he is no longer eligible
       to receive continuation coverage pursuant to
       the Consolidated Omnibus Budget Reconciliation Act
       of 1985, as amended, or 12 months from the
       termination date.

"In the course of analyzing our strategic alternatives over the last
several months, it has become apparent that there are differing opinions
regarding the company's strategy to enhance shareholder value," Hong Lu,
chief executive officer of UTStarcom, said.  "We recognize Ying's service
to UTStarcom during his tenure with the company and wish him well in
future endeavors."

With Mr. Wu's departure, UTStarcom Chief Executive Officer Hong Lu will
serve as head of the company's China operations on an interim basis and
will continue in his current role as chief executive officer and president
of UTStarcom Inc.

"The Chinese market was the foundation on which UTStarcom was built and
will continue to be an integral part of the company's success today and in
the future," Mr. Lu said.  "Over the coming months, I intend to spend a
significant amount of time in China to focus on our China operations and
our long- established relationships with our carrier customers."

Headquartered in Alameda, Calif., UTStarcom Inc. (Nasdaq: UTSI)
-- http://www.utstar.com/-- provides IP-based, end-to-end
networking solutions and international service and support.  The
company sells its broadband, wireless, and handset solutions to
operators in both emerging and established telecommunications
markets around the world.  The company maintains operations in
France, Italy, Spain, China, India, Japan, Argentina and Brazil.

                          *    *    *

As reported on Jan. 18, 2007, noteholders of UTStarcom Inc.'s 7/8%
convertible subordinated notes due 2008 agreed to the proposed amendments
of certain provisions of the indenture pursuant to which the notes were
issued and a waiver of rights to pursue remedies available under the
indenture with respect to certain default.

Under the terms of the indenture, during the period beginning
Jan. 9, 2007 and ending 5:30 p.m., May 31, 2007, any failure by
the company to comply with certain provisions will not result in
a default or an event of default, and the Notes will accrue an
additional 6.75% per annum in special interest from and after
Jan. 9, 2007 to the maturity date of the Notes, unless the Notes
are earlier repurchased or converted.


VERINT SYSTEMS: Posts US$1.2 Mil. Net Loss in 2007 First Quarter
----------------------------------------------------------------
Verint Systems Inc. reported record sales of US$101,274,000 for the first
quarter of fiscal 2007, ended April 30, 2007, a 15% increase compared with
sales of US$87,736,000 for the first quarter of fiscal 2006.

Net loss on a generally accepted accounting principles basis was
US$1,233,000 for the first quarter of fiscal 2007.  Net income was
US$9,353,000 for the first quarter of fiscal 2007.

Dan Bodner, president and CEO of Verint, stated, "In addition to
delivering record revenue in our first quarter, we recently achieved two
significant milestones in the company’s history.  We surpassed US$100
million in quarterly revenue for the first time and we closed the highly
strategic acquisition of Witness Systems, making us a leader in workforce
optimization and giving us larger scale to better address both the
security and enterprise markets."

Mr. Bodner continued, "Following the announcement to acquire Witness early
in our first quarter, we immediately began to make investments to prepare
for the integration and to support the increased scale of the combined
entity.  While these investments reduced our earnings in our first
quarter, they have enabled us to operate as one integrated business
immediately at closing with a unified management team and we believe these
investments will benefit Verint’s long-term growth."

The company ended the first quarter of fiscal 2007 with cash, cash
equivalents, bank time deposits and short-term investments of
US$167,015,000.

                       About Verint Systems

Headquartered in Melville, New York, Verint Systems Inc. (VRNT.PK) --
http://www.verint.com/-- is a provider of analytic software-based
solutions for security and business intelligence.  Verint software, which
is used by over 1,000 organizations in over 50 countries worldwide,
generates actionable intelligence through the collection, retention and
analysis of voice, fax, video, email, Internet and data transmissions from
multiple communications networks.

Verint has global offices in France, Brazil and and India.

                          *     *     *

As reported in the Troubled Company Reporter on April 24, 2007,
Standard & Poor's Ratings Services assigned its 'B' corporate
credit rating to Verint Systems Inc.  At the same time, we
assigned our 'B' bank loan rating, and '3' recovery rating to the
company's proposed US$675 million first-lien credit facility, indicating
that lenders can expect meaningful (50%-80%) recovery of principal in the
event of payment default," said Standard & Poor's credit analyst David
Tsui.   The outlook is developing.


XERIUM TECH: Promotes Eduardo Fracasso as President-Brazil Unit
---------------------------------------------------------------
Xerium Technologies Inc. has promoted Eduardo Fracasso to the position of
President – Xerium Brazil, reporting directly to Thomas Gutierrez, Chief
Executive Officer of Xerium Technologies.  Mr. Fracasso has been with the
Company in Brazil for nearly 18 years, most recently as Operational
Director.  Miguel Quiñonez, the company's President - Xerium South
America, who notified the company of his plans to retire effective
Dec. 31, 2007, will retain direct responsibility for the Company’s
operations in Argentina and continue to mentor Mr. Fracasso.

"I am pleased to welcome Eduardo to the executive team," said Thomas
Gutierrez, Chief Executive Officer of Xerium Technologies.  "I believe
that his many years of operational experience with the Company in Brazil
will serve him and the Company well as he takes on the responsibilities of
his new position.”

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

                        *     *     *

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

Affirmed ratings are:

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




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


ALTERNATIVE MULTI: Proofs of Claim Filing Is Until July 12
---------------------------------------------------------
Alternative Multi-Strategies Fund's creditors are given until
July 12, 2007, to prove their claims to Banque Privée Edmond
de Rothschild Europe, 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.

Alternative Multi’s shareholders agreed on May 30, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

         Maxwell Zhaohua Chang
         Wong Mei Ling (Marina)
         501 Newton Road
         Z.J. Hi-Tech Park
         Shanghai P.R.C.


BERNARD GLOBAL: Proofs of Claim Must be Filed by July 12
--------------------------------------------------------
Bernard Global Senior Funding Ltd.'s creditors are given until
July 12, 2007, to prove their claims to Hugh Thompson and Richard Gordon,
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.

Bernard Global’s shareholders agreed on May 25, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

         Richard Gordon
         Maples Finance Limited
         P.O. Box 1093


COMPASS LIMITED: Proofs of Claim Filing Ends on July 3
-------------------------------------------------------
Compass Ltd. creditors are given until July 3, 2007, to prove
their claims to Christopher D. Johnson and Russell Smith,
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.

Compass Ltd’s shareholders agreed on Feb. 16, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

         John Cullinane
         Derrie Boggess
         c/o Walkers SPV Limited, Walker House
         87 Mary Street, George Town
         Grand Cayman KY1-9002
         Cayman Islands
         Telephone: (345) 914-6305


JORDAIR CO: Proofs of Claim Filing Deadline Is July 12
------------------------------------------------------
Jordair Co.'s creditors are given until July 12, 2007, to prove
their claims to Phillip Hinds and Jan Neveril, 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.

Jordair Co.’s shareholders agreed on May 29, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

         Jan Neveril
         Maples Finance Limited
         P.O. Box 1093
         George Town, Grand Cayman
         Cayman Islands


MARATHON PETROLEUM: Proofs of Claim Filing Is Until June 21
---------------------------------------------------------
Marathon Petroleum Congo Ltd. creditors are given until
June 21, 2007, to prove their claims to Yvonne Kunetka, 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.

Marathon Petroleum’s shareholders agreed on Feb. 14, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

         Yvonne Kunetka
         Attention: Ian Gobin
         Walkers, Walker House
         87 Mary Street, George Town
         Grand Cayman KY1-9001
         Cayman Islands
         Telephone: (345) 814 4604
         Fax: (345) 949 7886


MICROPORT MEDICAL: Proofs of Claim Must be Filed by July 12
-----------------------------------------------------------
Microport Medical (Cayman) Corp.'s creditors are given until
July 12, 2007, to prove their claims to Maxwell Zhaohua Chang,
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.

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

The liquidators can be reached at:

         Maxwell Zhaohua Chang
         Wong Mei Ling (Marina)
         501 Newton Road
         Z.J. Hi-Tech Park
         Shanghai P.R.C.


MINCS-GLACE: Proofs of Claim Filing Is Until July 12
-----------------------------------------------------
Mincs-Glace Bay Ltd.'s creditors are given until July 12, 2007, to prove
their claims to Phillip Hinds and Jan Neveril, 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.

Mincs-Glace’s shareholders agreed on May 30, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

         Jan Neveril
         Maples Finance Limited
         P.O. Box 1093
         George Town, Grand Cayman
         Cayman Islands


NOTES FUNDING: Proofs of Claim Must be Filed by July 12
-------------------------------------------------------
Notes Funding Corp.'s creditors are given until July 12, 2007, to prove
their claims to Andrew Millar and Richard Gordon, 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.

Notes Funding’s shareholders agreed on May 30, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

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


PARMALAT SPA: Milan Judge Orders Four Banks to Stand Trial
----------------------------------------------------------
Judge Cesare Tacconi in Milan has ordered four banks to stand trial for
their alleged role in the collapse of Parmalat S.p.A., various reports
say.  Thirteen individuals were also ordered to face trial on the same
charges.

The four banks are Citigroup, UBS AG, Morgan Stanley and Deutsche Bank AG.
The names of the individuals however were not disclosed.

The trial is scheduled on Jan 22, 2008.

Bloomberg reports that according to Milan magistrates, the banks failed to
disclose the terms of  bond sale as well as other financing.  Bloomberg
adds that market manipulation carries a term of up to five years while the
banks could be fined EUR1 million per count.

The banks have denied the allegations.

                        About Parmalat

Headquartered in Milan, Italy, Parmalat S.p.A. --
http://www.parmalat.net/-- sells nameplate milk products that
can be stored at room temperature for months.  It also has about
40 brand product lines, which include yogurt, cheese, butter,
cakes and cookies, breads, pizza, snack foods and vegetable
sauces, soups and juices.

The Company's U.S. operations filed for chapter 11 protection on
Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139).  Gary
Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal &
Manges LLP, represent the Debtors.  When the U.S. Debtors filed
or bankruptcy protection, they reported more than US$200 million
in assets and debts.  The U.S. Debtors emerged from bankruptcy
on April 13, 2005.

Parmalat S.p.A. and its Italian affiliates filed separate
petitions for Extraordinary Administration before the Italian
Ministry of Productive Activities and the Civil and Criminal
District Court of the City of Parma, Italy on Dec. 24, 2003.
Dr. Enrico Bondi was appointed Extraordinary Commissioner in
each of the cases.  The Parma Court has declared the units
insolvent.

On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No.
04-14268, in the United States Bankruptcy Court for the Southern
District of New York.

Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat
Capital Finance Ltd., and Food Holdings Ltd.  Dairy Holdings and
Food Holdings are Cayman Island special-purpose vehicles
established by Parmalat S.p.A.  The Finance Companies are under
separate winding up petitions before the Grand Court of the
Cayman Islands.  Gordon I. MacRae and James Cleaver of Kroll
(Cayman) Ltd. serve as Joint Provisional Liquidators in the
cases.  On Jan. 20, 2004, the Liquidators filed Sec. 304
petition, Case No. 04-10362, in the United States Bankruptcy
Court for the Southern District of New York.  In May 2006, the
Cayman Island Court appointed Messrs. MacRae and Cleaver as
Joint Official Liquidators.  Gregory M. Petrick, Esq., at
Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq.,
at Janvey, Gordon, Herlands Randolph, represent the Finance
Companies in the Sec. 304 case.

The Honorable Robert D. Drain presides over the Parmalat
Debtors' U.S. cases.




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


TECH DATA: Names Caryl Lucarelli as Human Resources Vice Pres.
--------------------------------------------------------------
Tech Data Corporation has appointed Caryl N. Lucarelli vice president,
Human Resources, The Americas.  With nearly 20 years of human resources
experience, Lucarelli will head Tech Data’s employee recruitment and
relations activities, compensation and benefits strategies, as well as
other human resources functions supporting 3,700 employees throughout the
company’s Americas region.

“Caryl has a wealth of experience and has demonstrated strong leadership
in all areas of human resources management,” said Tech Data CEO Robert
Dutkowsky.  “Having worked for major distribution companies in other
industries during the last eight years, she knows how to address the
extensive human resources needs of a distributor with the scope and scale
of Tech Data.  Caryl is a valuable addition to our senior management team
in the Americas, where we are positioning the company for growth by
enhancing our execution, empowering employees with the latest IT
innovations and diversifying our geographic reach and product offerings.”

In 2004, Ms. Lucarelli was named vice president, Compensation & Benefits
for Hughes Supply Inc. in Orlando.  After Hughes’ acquisition by Home
Depot in 2006, she was named vice president, Human Resources – Global
Support Center, the home improvement retailer’s fastest growing division
with 26,000 employees. Prior to Home Depot, Lucarelli held several senior
human resources positions with international shipping solutions company
Brambles Industries in Orlando.  She joined Brambles as director,
Compensation & Benefits for the company’s CHEP USA division in 1999.  She
also served as the division’s vice president, Human Resources; director,
Global Compensation & Benefits for CHEP International; and director of
Brambles Industries’ Engagement Center of Excellence.  Ms. Lucarelli also
held several management positions focused on a wide range of human
resources activities with Volvo Trucks North America Inc., in Greensboro,
N.C., and Dresser-Rand Company in Corning, N.Y.

Ms. Lucarelli earned a master’s degree in industrial relations with minors
in public administration and organizational psychology from the University
of New Haven in West Haven, Conn.  She also earned a bachelor’s degree in
economics with a minor in finance from Clemson University.  She is a
Certified Compensation Specialist and Certified EEO (equal employment
opportunity) Professional.

Founded in 1974, Tech Data Corporation (NASDAQ GS: TECD) --
http://www.techdata.com/-- distributes IT products, with more than 90,000
customers in over 100 countries.  The company's business model enables
technology solution providers, manufacturers and publishers to
cost-effectively sell to and support end users ranging from
small-to-midsize businesses to large enterprises.  Tech Data is ranked
107th on the FORTUNE 500(R).  The company and its subsidiaries operate
centers in Latin America, including Brazil and Chile.

                          *     *     *

Tech Data Corporation's US$350 million convertible senior notes due 2026
carry Moody's Investors Service’s 'Ba2' rating.  The company also carries
Moody’s Ba1 corporate family rating and Ba1 probability of default rating.




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


BANCOLOMBIA: UBS Maintains Buy Rating on Firm's Shares
------------------------------------------------------
UBS analysts have kept their "buy" rating on Bancolombia's shares,
Newratings.com reports.

According to Newratings.com, the target price for Bancolombia's shares was
increased to US$42.49 from US$36.39.

The analysts said in a research note that "robust margins/asset quality
and asset growth are expected to drive earnings growth" for Bancolombia of
36% and 25% in 2007 and 2008, respectively.

The analysts told Newratings.com that the "underperformance of
Bancolombia’s stock has been due to deal concerns related to Agricola and
an offering-related overhang, relative to MSCI LatAm, which are now
expected to dissipate."

The earnings per share estimate for 2007 was increased to COP1,418.45 from
COPP1,346.19, while the estimate for 2008 rose to COPP1,674.53 from
COPP1,590.74 to, to indicate the "inclusion of Banagricola in the model,"
Newratings.com states.

Bancolombia is Colombia's largest full-service financial
institution, formed by a merger of three leading Colombian
financial institutions.  Bancolombia's market capitalization is
over US$5.5 billion, with US$13.8 billion asset base and US$1.4
billion in shareholders' equity as of Sept. 30, 2006.
Bancolombia is the only Colombian company with an ADR level III
program in the New York Stock Exchange.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
May 4, 2007, Fitch Ratings downgraded and removed from Rating
Watch Negative Bancolombia's long-term and short-term local
currency Issuer Default Ratings and Individual rating:

   -- Individual rating to 'C/D' from 'C';
   -- Local currency long-term IDR to 'BB+' from 'BBB-'; and
   -- Local currency short-term rating to 'B' from 'F3';

In addition, Fitch affirmed these ratings:

   -- Foreign currency long-term IDR at 'BB+';
   -- Foreign currency short-term rating at 'B'; and
   -- Support rating at '3'.

Fitch says the rating outlook was stable.


* COLOMBIA: S&P Puts BB+ Rating on Proposed Global TES Bond
-----------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB+' long-term senior
unsecured rating to the Republic of Colombia's proposed 2027 Global
Titulos de Tesoreria bond, a bond denominated in Colombian pesos but
payable in U.S. dollars.

"The Global TES received the foreign currency rating on Colombia instead
of the local currency rating because the bonds will be issued externally
under New York law and will be pari passu with the external debt of the
Republic and subject to cross default clauses," explained Standard &
Poor's credit analyst Richard Francis.

The ratings on the proposed Global TES are unaffected by Standard & Poor's
introduction of recovery ratings on foreign currency obligations.  This
introduction led to a one-notch upgrade of the Republic of Colombia's
senior unsecured foreign currency debt, due to its high expected recovery
post-default (70%-90%). Standard & Poor's current recovery methodology
only pertains to foreign currency debt. Standard & Poor's has not yet
released its recovery methodology for local currency debt. When it does,
it will be applied  to Colombia's 2007 Global TES.  The 'BB+' rating only
speaks to the probability of default and not to the expected recovery in
the event of default, which might differ from the recovery of foreign
currency-denominated bonds.




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


SMART MODULAR: Good Performance Cues S&P to Lift Rating to BB-
--------------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit rating on
Fremont, California-based SMART Modular Technologies, Inc. to 'BB-' from
'B+', and its senior secured second-lien floating rate notes to 'BB-' from
'B', based on the company's improved operating performance and low debt
leverage for the rating.

The outlook is stable.

"The ratings on SMART Modular reflect modest profitability, execution
challenges in a highly competitive market, and relatively high
concentration with a handful of large OEMs," said Standard & Poor's credit
analyst Lucy Patricola.  These factors partly are offset by the company's
leading market position in its niche as an independent supplier of memory
modules, solid operating capabilities, and moderate financial profile.
SMART Modular's is a leading independent designer and manufacturer of
memory module products.

SMART Modular largely is insulated from swings in the prices of DRAM and
other types of memory.  These components typically are consigned to SMART
Modular, or the company has the ability to pass through swings in costs to
customers.  Profitability, in terms of EBITDA margins, has improved and
stabilized at the high-single digit level from the low-to-mid single
digits the company experienced few years ago, as a result of a better
product mix, higher volumes, and the company offshoring manufacturing and
packaging capabilities to lower cost regions, i.e., Brazil and Malaysia.
S&P believe that, while the outlook for unit growth in memory modules is
positive, risks are centered on the company's ability to act on its design
innovation, time to market, and service plans within a competitive market.
Additional potential risk factors include high customer concentration,
with Hewlett-Packard and Cisco Systems together accounting for
approximately 60% of the company total revenues.  Expansion into related
product areas, including memory products for embedded computers and
TFT-LCD products provide potential for greater business diversity in the
future.

The company has design centers in California, South Korea and
Massachusetts.  Its manufacturing facilities are located in California,
Malaysia, Brazil, Dominican Republic and Puerto Rico.




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


PETROECUADOR: Developing Panacocha Field
----------------------------------------
Ecuadorean state-run oil firm Petroecuador said in a statement that it is
taking steps to advance projects to develop the Panacocha field in
Orellana and to produce oil in Amazon blocks.

Business News Americas relates that Panacocha has some 65 million barrels
of reserves.

Petroecuador's unit Petroproduccion will conduct Panacocha works under a
"contractual mechanism to be defined in the next few days," BNamericas
notes.

Petroecuador will launch a bidding process by the end of this month for
the production in Petroproduccion mature blocks in the Amazon, 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.


PETROLEUM GEO: US$800MM Debt Refinancing Cues S&P to Affirm Rtg.
----------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB-' corporate credit
rating on geophysical company Petroleum Geo-Services ASA.

The affirmation follows PGS' announcement that it will seek to refinance
existing senior secured debt with US$800 million in new senior secured
credit facilities (consisting of a US$500 million term loan B and US$300
million revolving credit facility) as well as fund a one-time special
dividend of US$300 million.

Despite the leveraging aspects of this transaction, S&P expect credit
measures to remain at acceptable levels for the current ratings over the
near to intermediate term.  The outlook is stable.

S&P will not rate the new senior secured credit facilities, and will
withdraw its 'BB-' senior secured rating on PGS' current bank facilities
(US$850 million term loan B and US$150 million revolving credit facility)
upon close of the new facilities.

Pro forma the refinancing, Lysaker, Norway-based PGS will have US$587
million in long-term debt (including US$75.7 million in amortizing secured
debt at wholly owned subsidiary Oslo Seismic and capital leases of about
US$12.2 million).

"The ratings on PGS reflect the company's participation in the very
competitive and highly cyclical seismic subsector of the oilfield services
industry," said Standard & Poor's credit analyst Jeffrey Morrison.
"Ratings also incorporate management's increasing focus on rewarding
shareholders in the current industry upcycle as well as an aggressive
financial risk profile.  Concerns are partially offset by PGS' strong
market position in marine and onshore seismic operations, a sizable and
technically sophisticated fleet of 3D marine seismic acquisition vessels,
and expectations that currently favorable industry conditions will support
near-term cash flow and credit measures."

The stable outlook incorporates S&P’s expectations that currently
favorable industry conditions, manageable debt levels, and improved cash
flow generation will support ratings in the near to intermediate term.
Given the leveraging effects of recent transactions, positive rating
actions are likely limited in the near term.  In the longer term, further
rating improvement, while possible, will depend on S&P’s assessment of the
company's business risk profile (given participation and in a challenging
and historically volatile industry) and management's adherence to prudent
financial policy.  Conversely, if management pursues growth initiatives
and/or additional rewards to its shareholders in a more leveraging manner
(i.e., causing adjusted debt to EBITDA to materially exceed 2x-2.5x in an
upcycle environment), or if operational performance deviates materially
from S&P’s expectations, negative rating actions could result.

Headquartered in Oslo, Norway, the company has operations in Singapore and
Ecuador.




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


NATIONAL WATER: Paying A Cent for Breaching Guaranteed Standards
----------------------------------------------------------------
Radio Jamaica reports that the National Water Commission will  pay one
cent despite racking up almost US$14 million in penalties for breaching
"Guaranteed Standards," as consumers seem unaware that the payments are
due.

Guaranteed Standards is a set of provisions which require utility firms to
provide a minimum level of service to their clients.

Radio Jamaica relates that the National Water was cited for 14,000
breaches for the three months ended Dec. 31, 2006.

The National Water hasn't made any payment.  Clients have not presented
any claim, Radio Jamaica states.

                        *     *     *

As reported in the Troubled Company Reporter on Feb. 7, 2006,
the National Water Commission of Jamaica had been criticized for
failing to act promptly in cutting its losses.  For the fiscal
years 2002 and 2003, the water commission accumulated a net loss
of US$2.11 billion.  The deficit fell to US$1.86 billion the
following year, and to US$670 million in 2004 and 2005.




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


BEARINGPOINT INC: Hires John Distefano as VP & Exec. Director
-------------------------------------------------------------
BearingPoint, Inc., has appointed John C. Distefano as vice president and
executive director of healthcare payer services in the firm’s global
Healthcare practice.

Mr. Distefano brings more than 26 years of experience to BearingPoint and
will be responsible for overseeing the growth of BearingPoint’s health
payer practice, which focuses on assisting U.S. health plans with
improving healthcare quality and affordability through improved business
performance.

Mr. Distefano was most recently a partner and member of Accenture’s
healthcare payer industry executive leadership team, where he was
responsible for leading the company’s information technology solutions for
its healthcare payer business.  Mr. Distefano’s experience also includes
more than 13 years of healthcare payer business transformation and
technology services at Ernst & Young and CapGemini.

He has served as a columnist and contributor for prominent industry
publications.  He co-authored the book, “Enterprise Wireless Application
Architecture,” and served as executive editor of the book, “Gaining
Business Value from Mobile Technologies.”

“I’ve worked with John previously in my career and have always admired his
unflagging commitment to client service,” said Tuck Crocker, vice
president and head of BearingPoint’s commercial healthcare practice.  “We
are excited to add his extensive experience to our rapidly-growing team.”

“I’m very excited to join BearingPoint, and look forward to helping
healthcare payer clients enhance core business operations and improve the
execution of technology delivery,” said Mr. Distefano.  “BearingPoint is
committed to assisting clients in solving business and technology
challenges and I believe this uniquely positions us to deliver superior
business performance to our clients.”

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.


BRISTOW GROUP: Completes US$300 Million Senior Notes Offering
-------------------------------------------------------------
Bristow Group Inc. has closed its private offering of US$300 million of
senior notes due 2017.  The notes priced at par and will carry an interest
rate of 7-1/2%.  The company intends to use the net proceeds from the
offering to fund additional aircraft purchases under options and for
general corporate purposes.  Interest is payable every March 15 and Sept.
15.       Payment starts Sept. 15, 2007.

The notes will not initially be registered under the Securities Act of
1933 or the securities laws of any state and may not be offered or sold in
the United States absent registration or an applicable exemption from the
registration requirements under the Securities Act and applicable state
securities laws.  The notes may be resold by the initial purchasers
pursuant to Rule 144A and Regulation S under the Securities Act.

Headquartered in Houston, Texas, Bristow Group, Inc. --
http://www.bristowgroup.com–- (NYSE:BRS), fka Offshore Logistics, Inc.,
provides helicopter transportation services to the worldwide offshore oil
and gas industry with operations in the United States Gulf of Mexico and
the North Sea. The Company also has operations, both directly and
indirectly, in offshore oil and gas producing regions of the world,
including Australia, Brazil, China, India, Mexico, Nigeria, Russia and
Trinidad.  The Company also provides production management services for
oil and gas production facilities in the United States Gulf of Mexico.

                         *     *     *

As reported in the Troubled Company Reporter on June 6, 2007, Standard &
Poor's Ratings Services assigned its 'BB' rating to helicopter service
company Bristow Group Inc.'s US$250 million senior notes due 2017.  At the
same time, Standard & Poor's affirmed the 'BB' corporate credit rating and
all other ratings on the company.  S&P said the outlook is negative.


CLEAR CHANNEL: Eyes 50% Increase in Outdoor Advertising Market
--------------------------------------------------------------
Clear Channel Outdoor aims to increase its outdoor advertising market
shares in France, where it competes with JCDecaux, Reuters reports citing
Les Echos as its source.

"We have to reach a 50-50 situation and this target is reachable within
five years," Hubert Janvier, head of Clear Channel France said in an
interview with Les Echos.

According to the report, the company wants to lift its current 32% share
of the French street furniture market to 50% within five years by
advertising on street props such as bus shelters or public toilets.

Domestic leader JCDecaux holds a 57% market share.

The company has a 28% share of the French outdoor advertising market
compared with the 32% for JCDecaux.  It generates
revenue of EUR350 million in France where it has 1,600 employees, Reuters
relates.

                      About Clear Channel

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

                         *    *    *

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


ENERSYS INC: Reports US$10.6 Mil. Net Income in 2007 Fourth Qtr.
----------------------------------------------------------------
EnerSys announced its financial results for the fourth quarter and full
year of fiscal 2007.  Net earnings for the fourth quarter were US$10.6
million, compared to net earnings of US$11.7 million for the same period
in 2006, and exceeds the previous guidance of US$0.15 to US$0.19 per
diluted share provided on Feb. 7, 2007.

Net sales for the fourth fiscal quarter of 2007 were US$413.6 million
compared to US$353.2 million in the comparable period of the prior year,
or an increase of 17.1 %.

Net earnings for fiscal 2007 were US$45.2 million or US$0.97 per share
basic and US$0.95 per share diluted, including a US$0.05 per share
favorable impact from two legal settlements, a US$0.04 per share
non-recurring tax benefit and a US$0.01 per share unfavorable impact of
legal and professional fees related to a shelf registration statement and
secondary offering, plus an abandoned acquisition.  This compares to net
earnings of US$30.7 million or US$0.66 per basic and diluted share in the
prior fiscal year, which included a US$0.12 per share unfavorable impact
primarily related to restructuring activities.  Excluding the highlighted
charges and credits, adjusted net earnings for fiscal 2007 were US$41.4
million or US$0.89 per basic and US$0.87 per diluted share, compared to
adjusted net earnings for fiscal year 2006 of US$36.6 million or US$0.79
per basic and US$0.78 per diluted share.

Net sales for fiscal 2007 were US$1,504.5 million compared to US$1,283.3
million in the prior year, or an increase of 17.2%.

"High commodity costs continue to impact our business. In spite of these
costs, we have been able to continue to grow our revenues and sustain our
earnings.  We believe that the combination of our product quality and the
high level of service we offer to our customers represents the best value
in our industry and has allowed us to increase our selling prices to
largely offset these costs.  In addition, we continue to derive benefit
from our cost reduction programs," stated John D. Craig, chairman,
president and chief executive officer.  Mr. Craig added, "We anticipate
that adjusted diluted net earnings per share for our first quarter of
fiscal 2008 will be between US$0.24 and US$0.28, which excludes the
expected charge of US$10 million or approximately US$0.14 per share from
our European restructuring actions as described in our press release of
May 23, 2007."

EnerSys Inc. -- 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.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
May 21, 2007, Standard & Poor's Ratings Services revised its
outlook on industrial battery manufacturer EnerSys to stable
from negative.  Standard & Poor's also affirmed all its ratings
on the company, including its 'BB' corporate credit rating.


GLOBAL POWER: Wants Exclusive Plan-Filing Period Extended
---------------------------------------------------------
Global Power Equipment Group Inc. and its debtor-affiliates ask the U.S.
Bankruptcy Court for the District of Delaware gave to extend until Oct. 1,
2007, their exclusive period to file a chapter 11 plan of reorganization,
the Associated Press Reports.  The Debtors also want their exclusive
period to solicit acceptances of that plan to Nov. 30, 2007.

The company's exclusive plan-filing period is set to expire on July 10, 2007.

According to the report, the Debtors are still in talks with the
Official Committee of Unsecured Creditors and the Official Committee of
Equity Security Holders.  The Debtors contend, AP relates, the extension
would allow them additional time to better formulate a consensual chapter
11 reorganization plan.

Based in Tulsa, Oklahoma, Global Power Equipment Group Inc. aka
GEEG Inc. -- http://www.globalpower.com/-- provides power
generation equipment and maintenance services for its customers in the
domestic and international energy, power and infrastructure and service
industries.  The company designs, engineers and manufactures a range of
heat recovery and auxiliary equipment primarily used to enhance the
efficiency and facilitate the operation of gas turbine power plants as
well as for other industrial and power-related applications.  The company
has facilities in Plymouth, Minnesota; Tulsa, Oklahoma; Auburn,
Massachusetts; Atlanta, Georgia; Monterrey, Mexico; Shanghai, China;
Nanjing, China; and Heerleen, The Netherlands.

The company and 10 of its affiliates filed for chapter 11
protection on Sept. 28, 2006 (Bankr. D. Del. Case No 06-11045).
Attorneys at White & Case LLP and The Bayard Firm, P.A.,
represent the Debtors.  Adam G. Landis, Esq., and Kerri K.
Mumford, Esq., at Landis Rath & Cobb LLP represents the Official
Committee of Unsecured Creditors.  As of Sept. 30, 2005, the
Debtors reported total assets of US$381,131,000 and total debts
of US$123,221,000.


JOAN FABRICS: Greystone Offers US$13.5 Million for Assets
---------------------------------------------------------
Joan Fabrics Corp. received a US$13.5 million offer from Greystone
Private Equity LLC for the purchase of its fabric-manufacturing assets,
Bill Rochelle of Bloomberg News reports.

The assets, which have been approved for sale on May 21, 2007,
will be auctioned on June 26, the source says.

If outbid, Greystone is entitled to a 2.5% breakup fee.

The Court is set to consider approval of the results of the
sale on June 28, 2007.

Bloomberg relates that the Debtor proposes to use portion of
the net proceeds from the sale to pay bonuses to its key
employees.

Based in Tyngsboro, Massachusetts, Joan Fabrics Corporation
manufactures automotive and furniture upholstery fabrics.  The
company has a manufacturing facility in North Carolina and an
affiliate entity in Mexico.

The Debtor and its affiliate, Madison Avenue Designs LLC, filed
for Chapter 11 protection on April 10, 2007 (Bankr. D. Del. Case
Nos. 07-10479 and 07-10480).  When the Debtors filed for
protection from their creditors, they listed estimated assets and debts of
US$1 million to US$100 million.  The Debtors' exclusive period to file a
chapter 11 plan expires on
Aug. 8, 2007.


SATELITES MEXICANOS: Seeks New Creditor To Refinance Debt
---------------------------------------------------------
Satelites Mexicanos Chief Executive Officer Raul Cisneros told Mexican
news wire Notimex that the company is seeking a new creditor to help it
refinance debt.

Satelites Mexicanos could also ask bondholders to help service the firm's
outstanding US$378-million debt, Notimex notes, citing Mr. Cisneros.

As reported in the Troubled Company Reporter-Latin America on June 12,
2007, Satelites Mexicanos SA rejected some acquisition offers for failing
to meet the firm's expectations.  The turned down offers include that of
Eutelsat Communications SA.  As previously reported, Eutelsat
Communications said that it, along with its two Mexican partners Groupe
Miguel Aleman and Groupe Clemente Serna, submitted an offer to acquire
Satelites Mexicanos.  Eutelsat Communications, Groupe Miguel and
Groupe Clemente were participating in a competitive bidding process the
Satelites Mexicanos shareholders launched.  Morgan Stanley coordinated the
process.

Business News Americas relates that Satelites Mexicanos suspended the
public auction last week.  According to reporters in Argentina, Satelites
Mexicanos may launch another auction.  It could take up to a year to find
a buyer.

Mr. Cisneros told BNamericas that the first option is to find a new
creditor to consolidate Satelites Mexicanos' debt at a better interest
rate, to make the outstanding debt manageable.  The firm could prepay its
existing debt with a long list of bondholders.

BNamericas notes that the second option is to directly approach
bondholders and refinance its existing debt at a lower cost.

Mr. Cisneros told BNamericas, "At this moment, our priority is to
refinance the debt."

Satelites Mexicanos also has to find a way to launch satellite Satmex 7,
which it needs to stay competitive in the market.  "The new satellite
remains second tier to the money it owes," BNamericas states, citing Mr.
Cisneros.

Satelites Mexicanos, SA de CV, provides fixed satellite services
in Mexico.  Satmex provides transponder capacity via its
satellites to customers for distribution of network and cable
television programming, direct-to-home television service, on-
site transmission of live news reports, sporting events and
other video feeds.  Satmex also provides satellite transmission
capacity to telecommunications service providers for public
telephone networks in Mexico and elsewhere and to corporate
customers for their private business networks with data, voice
and video applications.  Satmex also provides the government of
the United Mexican States with approximately 7% of its satellite
capacity for national security and public purposes without
charge, under the terms of the Orbital Concessions.

The Debtor filed for chapter 11 petition on Aug. 11, 2006,
(Bankr. S.D.N.Y. Case No. 06-11868).  Luc A. Despins, Esq., at
Milbank, Tweed Hadley & McCloy LLP represents the Debtor in the
U.S. Bankruptcy proceedings.  Attorneys from Galicia y Robles,
S.C., and Quijano Cortina Lopez y de la Torre give legal advice
in the Debtor's Mexican Bankrutpcy proceedings.  UBS Securities
LLC and Valor Consultores, SA de CV, give financial advice to
the Debtor.  Steven Scheinman, Esq., Michael S. Stamer, Esq.,
and Shuba Satyaprasad, Esq., at Akin Gump Strauss Hauer & Feld
LLP give legal advice to the Ad Hoc Existing Bondholders'
Committee.  Dennis Jenkins, Esq., and George W. Shuster, Jr.,
Esq., at Wilmer Cutler Pickering Hale and Dorr LLP give legal
advice to Ad Hoc Senior Secured Noteholders' Committee.  As of
July 24, 2006, the Debtor has US$905,953,928 in total assets and
US$743,473,721 in total liabilities.

On May 25, 2005, certain holders of Satmex's Existing Bonds and
Senior Secured Notes filed an involuntary chapter 11 petition
against the company (Bankr. S.D.N.Y. Case No. 05-13862).  On
June 29, 2005, Satmex filed a voluntary petition for a Mexican
reorganization, known as a Concurso Mercantil, which was
assigned to the Second Federal District Court for Civil Matters
for the Federal District in Mexico City.

On Aug. 4, 2005, Satmex filed a petition, pursuant to
Section 304 of the Bankruptcy Code that commenced a case
ancillary to the Concurso Proceeding and a motion for injunctive
relief that sought among other things, to enjoin actions against
Satmex or its assets (Bankr. S.D.N.Y. Case No. 05-16103).

Satmex concluded its reorganization efforts on Nov. 30, 2006,
and emerged from its U.S. bankruptcy case.  The company
consummated its U.S. chapter 11 plan of reorganization, which
was confirmed by the United States Bankruptcy Court for the
Southern District of New York by order dated Oct. 26, 2006, and
implemented the restructuring approved in Satmex's Mexican
Concurso Mercantil proceeding by the Concurso Plan Order issued
on July 14, 2006.


WARNACO GROUP: Improved Revenues Prompt S&P to Lift Rating to BB
----------------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit rating on
New York City-based apparel company Warnaco Group Inc. to 'BB' from 'BB-'.

The senior unsecured debt rating was raised to 'BB-' from 'B+', although
it remains one notch below the corporate credit rating because of its
junior position relative to the increased amount of secured debt in the
capital structure.

The secured bank loan rating was raised to 'BBB-' from 'BB', while the '1'
recovery rating, indicating expectations of very high (90%-100%) recovery
in the event of a payment default, was affirmed.  The outlook is stable.
The ratings are removed from CreditWatch, where they were placed with
positive implications, on May 9, 2007, after the company reported strong
first-quarter results.  Warnaco had about US$405 million in debt
outstanding at March 31, 2007.

"The upgrade reflects the improving trend in Warnaco's revenues, margins,
and credit protection measures, and our expectation that the positive
operating momentum will continue," said Standard & Poor's credit analyst
Susan Ding.  Warnaco has consistently met its projections and our
expectations, and has reduced its debt ahead of schedule, following its
debt-financed acquisition of the Calvin Klein jeanswear and related
businesses in Asia and Europe in 2006.  Total debt to EBITDA was 2.4x for
the 12 months ended March 31, 2007, compared with 3.8x a year ago.  The
company has continued to successfully grow its Calvin Klein underwear and
jeanswear franchises, while improving the operating performance of all
three business divisions.

The ratings on Warnaco reflect its participation in a highly competitive
and promotional retail environment, its reliance on the slower-growing
department store channel, and its exposure to fashion risk in some of its
business segments.  The ratings also incorporate the operating risk
associated with reinvigorating the company's various product offerings.
Furthermore, the ratings reflect Warnaco's positive operating momentum and
its well-recognized brand names.

Warnaco manufactures and markets men's and women's intimate apparel,
underwear, and sportswear.  Products are sold under owned and licensed
names, such as: Calvin Klein, Speedo, Chaps, Olga, Warner's, Anne Cole,
among others.  Some of Warnaco's core products are characterized by
relatively stable demand.  The company has operations in Europe, Mexico
and Korea.




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


CHIQUITA: Inks Plantation Improvement Pact with Coosemupar
----------------------------------------------------------
Chiquita Brands International has signed a PAB10-million accord with
Panamanian banana producer cooperative Cooperativa de Servicios Multiples
de Puerto Armuelles aka Coosemupar for the improvement of plantations,
Jahir Lombana at Fresh Plaza reports.

Fresh Plaza relates that under the agreement, Chiquita Brands must
purchase Coosemupar's production.  The accord expires in September 2007.
From that date on, Coosemupar must negotiate with Chiquita Brands about
the terms for a new pact until 2013.

According to Fresh Plaza's Mr. Lombana, growers are worried on the new
results, saying that for the last three years Chiquita Brands paid less
than the production costs due to the system of payment.

Chiquita Brands will invest some PAB6.1 million in the plantations.  The
financial injection from Chiquita Brands was important.  Still, a fair
price is needed to make the activity viable, Fresh Plaza's Mr. Lombana
notes, citing Coosemupar manager Hirisnel Sucre.

Oil prices affected costs of production and banana workers are afraid on
the effects of the current situations to keep the company on business.
There must be a new accord to regulate prices of the boxes, the Banana
Workers Union Secretary Salustiano De Gracia told Fresh Plaza's Mr.
Lombana.

Chiquita Brands told Reuters that  banana prices dropped 1% in its core
European markets on a local currency basis and were flat in North America
for the two-month period from April to May 2007, compared to the same
period in 2006.

According to Chiquita Brands' statement, banana volume sold in the core
European markets fell by 4%, while the volume in North America increased
8%.

RTT News notes that Chiquita Brands' banana prices in its core European
markets decreased, an indication of the continued effect of the EU
regulatory changes implemented on Jan. 1, 2006.  The changes led to a
boost in industry volume and price competition.  Volume sold in the core
European markets dropped by 4% due to Chiquita Brands' strategic
determination to concentrate on profitable volume and maintaining its
premium position in the markets.

Pricing in Asia Pacific and the Middle East increased 5% year-on-year on a
US dollar basis, mainly due to significant improvement in local pricing in
Japan, partially counterbalanced by unfavorable dollar-yen exchange rates,
RTT News relates.  Meanwhile, the total volume of retail value-added
salads in the Salads and Healthy Snacks segment rose 1% year-over-year.

Chiquita told RTT News that due to consumer concerns on the safety of
packaged salad products, it expects decreased sales and reduced margins to
continue through at least the third quarter 2007.

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%).




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


MAIDENFORM BRANDS: S&P Upgrades Credit Rating to BB- from B+
------------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit rating on
Bayonne, New Jersey-based intimate apparel designer and marketer
Maidenform Brands Inc. to 'BB-' from 'B+'.

At the same time, Standard & Poor's raised its rating on Maidenform's
secured bank loan to 'BB+' from 'BB', and affirmed the '1' recovery
rating, indicating expectations of very high (90%-100%) recovery in the
event of a payment default.  Total debt outstanding at March 31, 2007, was
US$110 million.

The outlook is stable.

"The upgrade reflects Maidenform's improving trend in revenues, margins,
and credit protection measures," said Standard & Poor's credit analyst
Susan Ding.  "In particular, debt leverage, which improved to 2.2x at
March 31, 2007, from a high of 3.4x at fiscal year-end December 2004."

In recent periods, Maidenform has successfully revitalized its
well-recognized brands, expanded its distribution channel into the mass
market, and improved operating efficiencies.  It has also been successful
at diversifying its reach into the mass channel by introducing new product
lines geared specifically for this channel.

Maidenform's operating margins have stayed in the 15% area in recent
years, and asset utilization has improved.  "We expect the company to
maintain its growth momentum with new-product introductions and product
extensions," said Ms. Ding, "by expanding internationally and continuing
to increase its presence in the mass channel."

Headquartered in Bayonne, New Jersey, Maidenform Brands, Inc.
-- http://www.maidenform.com/-- and its subsidiaries design, source, and
market a range of intimate apparel products in the United States and
Canada.  Its products include bras, panties, and shapewear. The company
offers its products under the Maidenform, Flexees, Lilyette, Sweet
Nothings, Rendezvous, Subtract, Bodymates, and Self Expressions brand
names. Maidenform Brands sells its products through department stores;
national chain stores; mass merchants, including warehouse clubs; and
specialty retailers, licensing income, and off-price retailers, as well as
through company-operated outlet stores and Web sites.  As of Dec. 31,
2006, it operated 76 outlet stores.
Maidenform products are currently distributed in 48 foreign countries and
territories, including the Philippines and Puerto Rico.


NEWCOMM WIRELESS: Wants Lopez-Zambrana as Special Tax Counsel
-------------------------------------------------------------
NewComm Wireless Services, Inc., has asked the U.S. Bankruptcy Court for
the District of Puerto Rico to authorize the retention of Manuel
Lopez-Zambrana, P.S.C., as its special tax counseleffective May 25, 2007.

Mr. Lopez-Zambrana will:

     (i) identify and resolve all tax related issues in
         connection with the sale of the Debtor to PRWireless;
         and

    (ii) identify and resolve all tax related issues in
         connection with the Debtor’s plan and disclosure
         statement.

Mr. Lopez-Zambrana will bill the Debtor in tenths of hours.  His hourly
rates is US$240.

Mr. Lopez-Zambrana has not received any compensation from the Debtor for
post-petition services and holds no retainer.

To the best of the Debtor's knowledge, Mr. Lopez-Zambrana is disinterested.

Those who are against Mr. Lopez-Zambrana's retention as NewComm Wireless'
special tax counsel are given until June 23, 2007, at 4:00 p.m. to file
their objection.

                     About NewComm Wireless

Based in Guaynabo, Puerto Rico, NewComm Wireless
Services Inc. is a PCS company that provides wireless service to the
Puerto Rico market.  The company is a joint venture between
ClearComm, L.P. and Telefonica Larga Distancia.  The company
filed for chapter 11 protection on Nov. 28, 2006 (Bankr. D. P.R.
Case No. 06-04755).  Carmen D. Conde Torres, Esq., at C. Conde
& Assoc. and Peter D. Wolfston, Esq., at Sonnenschein Nath &
Rosenthal LLP represent the Debtor in its restructuring efforts.
Mark J. Wolfson, Esq. at Foley & Lardner LLP and Sergio A.
Ramirez de Arellano, Esq., at Sergio Ramirez de Arrelano Law
Office represent the Official Committee of Unsecured
Creditors.  In its schedules, the Debtor disclosed total assets of
US$111,652,190 and total debts of US$190,695,559.




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


BRITISH WEST: Debt To Cost Trinidad Additional US$556 Million
-------------------------------------------------------------
British West Indies Airlines' debt will cost Trinidad and Tobago an
additional US$556 million, Juhel Browne at the Trinidad and Tobago Express
reports.

According to The Express' Mr. Browne, British West's shutdown  last year
and the setting up of its replacement Caribbean Airlines in January 2007
had cost the state some US$2.308 billion.

Finance Minister Conrad Enill told The Express' Mr. Browne that  closing
British West and establishing Caribbean Airlines cost the state US$1.27.2
billion during the 2005/2006 financial year.

The government had alloted 18% of its US$3.1-billion additional allocation
for the financial year to pay off British West's debts, The Express' Mr.
Browne notes, citing Minister Enill.

Minister Enill told The Express' Mr. Browne, "Supplementary resources in
the sum of US$556.421 million are being allocated towards the settlements
of BWIA [British West] liabilities, particularly, in relation to trade
creditors and business partners."

The amount will also help in Caribbean Airlines' capitalization, The
Express' Mr. Browne says, citing Minister Enill.

"These are one-off payments in order to complete the restructuring of
BWIA, as a basis for creating a viable aviation transport system to
support Trinidad and Tobago's expanded level of economic activity,"
Minister Enill told The Express' Mr. Browne.

British West Indies aka BWIA was founded in 1940, and for more
than 60 years had been serving the Caribbean islands from
Trinidad and Tobago, the hub of the Americas, linking the twin
island republic and many other Caribbean islands with North
America, South America, the United Kingdom and Europe.

The airline had reportedly been losing US$1 million a week due
to poor operational management.  An employee survey revealed
that lack of responsibility by the management was a major issue
in the company.  A number of key employees moved to other
companies caused by a deadlock in the airline's negotiation with
its labor union.

The Trinidad & Tobago government, which owns 97.188% of BWIA,
decided to shut down the airline on Dec. 31, 2006, and launch
the Caribbean Airlines.




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


GERDAU SA: Will Invest BRL73 Million in Miguel Burnier Mine
-----------------------------------------------------------
A Gerdau SA press official told Business News Americas that the company
will invest some BRL73 million in its Miguel Burnier mine in Ouro Preto,
Minas Gerais.

Disbursements will be concentrated on exploration and ore treatment at
Miguel Burnier.  The raw steel-making material will feed Gerdau's steel
units, BNamericas relates, citing the official.

The official told BNamericas that Brazilian national development bank
BNDES authorized a BRL64-million loan for the iron ore project in April
2007.

Meanwhile, Gerdau has disclosed plans on acquiring assets in Mexico and
the Dominican Republic, BNamericas states.

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

                        *     *     *

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


* URUGUAY: State Power Firm Investing US$145 Million in 2008
------------------------------------------------------------
The Uruguayan government said in a statement that state-owned power firm
UTE will invest US$145 million in 2008 to construct an "interconnection"
with Brazil.

According to the statement, UTE will begin preparing two tenders for the
construction works, which will involve building a frequency converter.
The interconnection will be between Maldonado, Uruguay, and Presidente
Medici, Brazil.

Business News Americas relates that the converter technology will "pave
the way for UTE" to set up a coal-fired plant.

UTE is also preparing tenders for private firms to construct and run a
24-megawatt renewable generator that would supply the firm, BNamericas
states.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
May 8, 2007, Standard & Poor's Ratings Services revised its outlook on
Uruguay's 'B+' long-term sovereign credit rating to positive from stable.
The short-term sovereign credit rating is 'B'.

On Sept 11, 2006, Fitch rated Uruguay's US$400 million issue of
5% inflation-indexed bonds payable in U.S. dollars and maturing
Sept. 14, 2018, at 'B+'.




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


DAIMLERCHRYSLER AG: Elects to Redeem Term Assets of Trust
---------------------------------------------------------
DaimlerChrysler AG has elected to redeem the term assets of the trust on
June 29, 2007, at a redemption price equal to par plus a make-whole amount
to be determined two business days prior to the Redemption Date.

The company has notified the U.S. Bank Trust National Association, as
Trustee, under the Base Trust Agreement dated as of May 21, 1998, as
supplemented by the Series C 1998-6 Supplement dated as of May 21, 1998,
between Structured Products Corp. and the Trustee.

If the Trustee receives the redemption payment on the Redemption Date,
then the Amortizing Certificates issued by the TIERS Corporate Bond-Backed
Certificates Trust C 1998-6 will be redeemed in full on the Redemption
Date at a price equal to 55.49314% of the redemption payment received by
the Trustee and the ZTF Certificates issued by the Trust will be redeemed
in full on the Redemption Date at a price equal to 44.50686% of the
redemption payment received by the Trustee.  If the Amortizing
Certificates are redeemed in full on the Redemption Date, no interest will
accrue on the Amortizing Certificates after the Redemption Date. If the
Trustee does not receive the redemption payment, the certificates will not
be redeemed.

For more information about these redemptions, please contact Janet O’Hara
of U.S. Bank Trust National Association at
212-361-2527.

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

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

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

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

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


LEAR CORP: European Commission Clears US$5.3 Billion Icahn Deal
---------------------------------------------------------------
European Union regulators approved the purchase of Lear
Corporation by American Real Estate Partners, L.P., an
affiliate of Carl C. Icahn, for approximately US$2.8 billion,
the Associated Press relates.

According to the report, the European Commission did not identify any
antitrust problems that will result from the merger
nor received any complaints from rivals within the stated
deadline.

Under terms of the agreement, Lear shareholders would receive
US$36.00 per share in cash.  The agreement also sees AREP
assuming about US$2.5 billion in debt.  Closing is expected to
occur by the end of the second quarter of 2007.

Mr. Icahn holds a 16 percent stake in the company, which makes
him Lear's largest shareholder.

J.P. Morgan Securities Inc. served as a financial advisor to the
deal and Winston & Strawn, LLP served as legal counsel to a Special
Committee of Lear's Board of Directors.  Bank of America
provided AREP with debt financing commitments for this
transaction.

The agreement is subject to the affirmative vote of the holders
of a majority of the outstanding shares of Lear common stock,
regulatory filings and approvals and other customary closing
conditions.  Upon the closing of the transaction, shares of Lear
common stock will no longer be listed on the New York Stock
Exchange or publicly-traded.

                  About American Real Estate

Headquartered in New York City, American Real Estate Partners,
LP (NYSE:ACP) -- http://www.arep.com/-- a master limited
partnership, is a diversified holding company engaged in a
variety of businesses.  The company's businesses currently
include gaming, oil and gas exploration and production, real
estate and home fashion.  The company is in the process of
divesting its Oil and Gas operating unit and their Atlantic City
gaming property.

The company owns a 99% limited partnership interest in American
Real Estate Holdings Limited Partnership.  Substantially all of
the assets and liabilities are owned by AREH and substantially
all of the company's operations are conducted through AREH and
its subsidiaries.  American Property Investors, Inc., or API,
owns a 1% general partnership interest in both the company and
AREH, representing an aggregate 1.99% general partnership
interest in the company and AREH.  API is owned and controlled
by Mr. Carl C. Icahn.

                         About Lear Corp.

Southfield, Mich.-based Lear Corp. (NYSE: LEA) --
http://www.lear.com/-- is a global supplier of automotive
interior systems and components.  Lear provides complete seat
systems, electronic products, electrical distribution systems,
and other interior products.

Lear also operates in Argentina, Austria, Belgium, Brazil,
Canada, China, Czech Republic, United Kingdom, France, Germany,
Honduras, Hungary, India, Italy, Japan, Mexico, Morocco,
Netherlands, Philippines, Poland, Portugal, Romania, Russia,
Singapore, Slovakia, South Africa, South Korea, Spain, Sweden,
Thailand, Tunisia, Turkey, and Venezuela.

                          *   *   *

In May 2007, Moody's Investors Service has assigned a B2
corporate family rating to AREP Car Acquisition Corp., the
corporate entity that will be established to affect the
consummation of the proposed acquisition and subsequent merger
of Lear Corporation into a subsidiary of American Real Estate
Partners, L.P.

At the same time, the rating agency confirmed Lear's existing
ratings consisting of:

   -- a B2 corporate family rating,
   -- B3 senior unsecured notes, and
   -- B2 secured bank term loan.

The rating outlooks for, and revised Lear and Lear Newco's
outlook to, are stable from ratings under review for possible
downgrade.

As reported on Feb. 13, 2007, Standard & Poor's Ratings Services lowered
its corporate credit rating on Southfield, Mich.-based Lear Corp. to 'B'
from 'B+ and placed its ratings on CreditWatch with negative implications
following Lear's announcement that it had agreed to be acquired by Carl
Icahn-controlled American Real Estate Partners, L.P.


* Recovery Ratings Assigned to 25 Speculative-Grade Sovereigns
--------------------------------------------------------------
Standard & Poor's Ratings Services said that, following the launch of its
revised global Recovery Ratings Scale and Sovereign Recovery Ratings
criteria, it has assigned recovery
ratings to the foreign currency senior unsecured debt of 25
speculative-grade sovereign issuers.

In a related action, Standard & Poor's raised its long-term debt ratings
on the foreign currency senior unsecured debt of the following sovereigns,
while at the same time affirming their foreign currency issuer credit
ratings:

                                   To    From
                             Foreign currency   Foreign currency
                               sr unsecd debt     ICR (affirmed)
     Republic of Colombia          BBB-   BB+               BB+
     Republic of Macedonia         BBB-   BB+               BB+
     Republic of Costa Rica        BB+    BB                BB
     Oriental Republic of Uruguay  BB-    B+                B+

The above foreign currency debt ratings are now one notch above the
sovereign ICRs, reflecting that the debt ratings now take into account
both default and recovery prospects.

The sovereign foreign and local currency ICRs on the 25 speculative-grade
sovereign issuers remain unchanged.

"The expansion of our recovery ratings to sovereign issues reflects the
market's increasing focus on post-default recovery prospects," said David
Beers, global head of Sovereign ratings at Standard & Poor's.  "It also
meets the demand for greater clarity and specificity with respect to
recovery prospects on different debt instruments of all types of issuers
worldwide.

"By providing a default indicator, a recovery indicator, and a blended
issue rating, we are able to enhance the transparency of our ratings," he
added.

The majority of sovereign recovery ratings are in the '3' (meaningful
recovery in the range of 50%-70%) and '4' (average recovery, 30%-50%
range) categories.

"We would not expect many sovereign recovery ratings to reach either the
highest or lowest points on the scale," continued Mr. Beers.  "In most
cases, very high recovery is unlikely since there is no insolvency regime
for sovereigns and few opportunities to foreclose on assets; and the
downside
recovery risk is limited since there is no sovereign equivalent to
corporate liquidation and relatively few recent historical instances of
outright debt repudiation by defaulting governments.

"Nevertheless, there are four issuers that are assigned recovery ratings
in the '2' category (substantial recovery, 70%-90%). As per our enhanced
recovery scale and issue ratings framework released May 30, 2007, bonds or
loans of speculative-grade issuers with a '2'recovery rating are rated one
notch above the issuer credit rating," he said.

"It is interesting to note that there is only weak correlation between
issuer credit ratings, which indicate likelihood of default, and recovery
ratings," said Christian Esters, Director, Sovereign Ratings.  "Therefore,
Standard & Poor's sovereign recovery analysis adds a new dimension to the
analysis of speculative-grade sovereigns."

We have assigned recovery ratings to the debt of these sovereign issuers:

                                  L-T FC  Recovery  FC sr unsecd
    Borrower                         ICR    rating          debt
    Argentina (Republic of)          B+          4          B+
    Belize                           B           3          B
    Brazil (Federative Republic of)  BB+         3          BB+
    Colombia (Republic of)           BB+         2          BBB-
    Costa Rica (Republic of)         BB          2          BB+
    Dominican Republic               B           3          B
    Ecuador (Republic of)            CCC         4          CCC
    Egypt (Arab Republic of)         BB+         3          BB+
    El Salvador (Republic of)        BB+         3          BB+
    Grenada                          CCC+        3          CCC+
    Guatemala (Republic of)          BB          3          BB
    Indonesia (Republic of)          BB-         3          BB-
    Jamaica                          B           4          B
    Lebanon (Republic of)            B-          4          B-
    Macedonia (Republic of)          BB+         2          BBB-
    Pakistan (Islamic Republic of)   B+          3          B+
    Panama (Republic of)             BB          3          BB
    Peru (Republic of)               BB+         3          BB+
    Philippines (Republic of)        BB-         3          BB-
    Serbia (Republic of)             BB-         4          BB-
    Turkey (Republic of)             BB-         3          BB-
    Ukraine                          BB-         4          BB-
    Uruguay (Oriental Republic of)   B+          2          BB-
    Venezuela (Bolivarian Rep. of)   BB-         4          BB-
    Vietnam (Socialist Republic of)  BB          3          BB

    L-T--Long term. FC--Foreign currency.

In essence, our sovereign recovery analysis centers on three key,
interrelated features:

     -- First, we address the sovereign's payment ability
        following the default scenario by simulating the post-
        default debt levels and comparing these with empirically
        derived post-restructuring sovereign debt profiles.

     -- Second, we focus on the sovereign's anticipated payment
        incentives after default.  These are likely to be
        affected by the sovereign's own default and
        restructuring history, as well as the importance of its
        access to global goods and capital markets.

     -- Third, we take into account potential flexibility linked
        to official creditors.

Standard & Poor's sovereign recovery rating criteria is fully explained in
the criteria article titled "Introduction Of Sovereign Recovery Ratings,"
published earlier on RatingsDirect.  In addition, a number of important
questions arising from the launch of our sovereign recovery ratings will
be addressed in the article titled "Credit FAQ: Sovereign Foreign Currency
Recovery Ratings," also published today on RatingsDirect.

This initial phase of recovery ratings takes in 25 sovereign issuers with
speculative-grade credit ratings that in most cases have a substantial
amount of debt outstanding.  Standard & Poor's will assign recovery
ratings to the debt of speculative-grade sovereigns that have relatively
small amounts of foreign currency debt outstanding in the second half of
2007.  Other speculative-grade sovereigns will be assigned recovery
ratings as and when they issue foreign currency-denominated debt.


                        ***********


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 prior written permission of
the publishers.

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

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


                   * * * End of Transmission * * *