TCRLA_Public/070618.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Monday, June 18, 2007, Vol. 7, Issue 120

                            Headlines

A R G E N T I N A

ALITALIA SPA: Posts EUR135 Million Net Loss for Q1 2007
ALL PRO: Trustee Verifies Proofs of Claim Until Aug. 13
BOSTON SCIENTIFIC: Court Bars Motion to Disallow Some Claims
BOSTON SCIENTIFIC: Inks Share Buyback Plan with Aspect Medical
DELTA AIR: Amends Credit Card Processing Agreement

FLEXIPACKING SRL: Proofs of Claim Verification Ends on June 26
GETTY IMAGES: Financial Filing Prompts S&P’s Positive Watch
LARIGEN SA: Proofs of Claim Verification Deadline Is Sept. 6
MENDOCAP SRL: Trustee To File Individual Reports on Aug. 10
PLAMEC SAIC: Proofs of Claim Verification Deadline Is July 6

RADIO TAXI: Proofs Of Claim Verification Is Until Sept. 12
REINANACE SA: Proofs of Claim Verification Ends on Sept. 10
SCHENFELD SA: Proofs of Claim Verification Is Until Aug. 6
URBANO CLOTHES: Proofs of Claim Verification Ends on Aug. 29
YPF SA: JP Morgan Maintains Underweight Rating on Repsol

* ARGENTINA: Cadivi Allows US$416 Million for Trade Exchange

B A R B A D O S

INTERPOOL: Commences Tender Offer for US$230MM of 6% Sr. Notes

B E R M U D A

QUANTA CAPITAL: Attracts Strong Investor Interest

B R A Z I L

ALLIANCE ONE: Restating Results for First Three Quarters of 2007
BANCO INDUSTRIAL: Applying for US$1-Million Loan from IADB
BANCO NACIONAL: Okays BRL101MMM Funding for Votorantim Metais
BANCO NACIONAL: Seeks To Boost Stake in Grupo Rede
COMPANHIA SIDERURGICA: Will Start Producing Cement in March 2008

GERDAU AMERISTEEL: Pacific Coast To Buy Valley Placers' Assets
LOCALIZA RENT: Moody's Assigns Ba1 Global-Local Currency Rating
PETROLEO BRASILEIRO: P-52 Oil Rig Project Surpassing Budget

C A Y M A N   I S L A N D S

CABLE & WIRELESS: May Not Meet Service Requirements in 15 Days
EM CAPITAL: Proofs of Claim Filing Is Until July 20
KENWALL LTD: Proofs of Claim Filing Deadline Is July 25
ORCHID FUNDING: Proofs of Claim Filing Is Until July 12
SD FUNDING: Proofs of Claim Must be Filed by July 12

SEQUILS-GLACE: Proofs of Claim Must be Filed by July 12
SHINSEI FUNDING: Proofs of Claim Filing Is Until July 12
TIAA HIGH: Proofs of Claim Filing Ends on July 12
WRIGLEY CDO: Proofs of Claim Filing Deadline Is July 12

C H I L E

AES GENER: Secures US$440-Million Loan for Nueva Ventanas Plant

C O L O M B I A

* COLOMBIA: Selling Stake in Interconexion Electrica

D O M I N I C A N   R E P U B L I C

AES CORP: E-Mails Show Politicians' Involvement in Tax Breach

E C U A D O R

* ECUADOR: Government Withdraws 220-Mining concessions

E L  S A L V A D O R

ASHMORE ENERGY: Buys Stake in Distribuidora de Electricidad

G U A T E M A L A

* GUATEMALA: Railroad Dev’t Files US$65MM Claim Against Gov't

J A M A I C A

AIR JAMAICA: Deal with Jamaica Netball Unaffected by Route Sale

M E X I C O

AMERICAN GREETINGS: Moody's Holds Ba1 Rating on Low Growth Rates
GENERAL MOTORS: Carlyle & Blackstone Are In for Final Bid
GENERAL MOTORS: Joins Ford & Chrysler to Cut Labor Costs

P A N A M A

CHIQUITA BRANDS: Europe Sales Volume Down 4% in April-May 2007

P U E R T O   R I C O

DIRECTV: Inks Wireless Internet Deal with Clearwire
DORAL FINANCIAL: Loses US$37.3 Million in First Quarter 2007

U R U G U A Y

* URUGUAY: Gov't Inks Pluna Sale Agreement with Investors

V E N E Z U E L A

DAIMLERCHRYSLER: Chrysler Puts US$450MM in Kenosha Engine Plant
PETROLEOS DE VENEZUELA: Gov't Okays Energy Pact with Paraguay
PETROLEO BRASILEIRO: Pipeline Project with Nanotech Expands

* VENEZUELA: Bonds Surge on Report That Gov't To Buy-Back Debts
* VENEZUELA: Fines Diageo US$3.2MM for Anti-Competitive Practice


                      - - - - -


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


ALITALIA SPA: Posts EUR135 Million Net Loss for Q1 2007
-------------------------------------------------------
Alitalia S.p.A. published EUR135 million in net losses for the first
quarter of 2007, compared with EUR159 million in net losses for the same
period in 2006, Kristine Crane writes for the Wall Street Journal.

The company also posted 7.3% year-on-year increase in first quarter net
revenues.

Alitalia attributed its better results to higher passenger and cargo
traffic increased in the first three months of 2007, The Irish Independent
reports.  The carrier added it is liquid enough to maintain operations for
more than 12 months.

The carrier blamed high fuel costs and a series of strikes for its
difficulty in reaching a turnaround, Ms. Crane relates.

                 Deloitte Approves 2006 Results

Meanwhile, Alitalia reveals that auditors Deloitte & Touche has approve
its accounts for year ended Dec. 31, 2006.

As reported in the TCR-Europe on June 5, 2007, there have been
speculations that Deloitte may not approve Alitalia's 2006 results pending
assurance of the carrier's future.

The TCR-Europe reported on May 28, 2007, that Alitalia reported EUR625.6
million in net loss on EUR4.72 billion in operating revenues for the year
ended Dec. 31, 2006, compared with EUR176.6 million in net loss on EUR4.8
billion in operating revenues for the year ended Dec. 31, 2005.

The company attributed its net loss mainly to a EUR197.3 million write off
of its aging fleet.  Alitalia also attributed its poor
results on higher fuel costs, stiff competition from low-cost carriers,
strikes and difficulties in achieving cost-cutting objectives.  Around
EUR100 million in losses were caused by strikes.

WSJ's Ms. Crane cites analysts as saying that Deloitte's approval of the
results reassures investors that the current sale process is moving on.

Bidders OAO Aeroflot-Unicredit Italiano S.p.A. and AirOne
S.p.A.-Intesa-San Paolo S.p.A. have until July 2, 2007 to submit  a
binding offer to acquire the Italian government's 39.9% stake in Alitalia
S.p.A.  Italy is encouraging the bidders to unify their bids.

                        About Alitalia

Headquartered in Rome, Italy, Alitalia S.p.A. --
http://www.alitalia.it/-- 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.


ALL PRO: Trustee Verifies Proofs of Claim Until Aug. 13
-------------------------------------------------------
Hector J. Garcia, the court-appointed trustee for All Pro Salud S.A.'s
reorganization proceeding, will verify claims from the company's creditors
until Aug. 13, 2007.  After verification period, the trustee will submit
the individual and general reports in court.  Dates for submission of
these reports are yet to be disclosed.

The informative assembly will be held on March 24, 2007.
Creditors will vote to ratify the completed settlement plan
during the assembly.

The National Commercial Court of First Instance in Buenos Aires approved a
petition for reorganization filed by All Pro.

The debtor can be reached at:

          All Pro Salud S.A.
          Llavallol 4585 Capital Federal
          Buenos Aires, Argentina

The trustee can be reached at:

          Hector J. Garcia
          Uruguay 572
          Buenos Aires, Argentina


BOSTON SCIENTIFIC: Court Bars Motion to Disallow Some Claims
------------------------------------------------------------
Boston Scientific Corp.’s motions to dismiss some product-
liability claims against the company over implantable
heart defibrillators has been rejected by a U.S. federal court
judge, Reuters said on its Web site Wednesday.

In his decision, the federal judge opined that Guidant Corp.,
which Boston Scientific bought last year, continued to sell
heart rhythm-management devices after learning of possible
defects, Reuters says.

"We are fully prepared to take the bellwether cases to trial
and remain confident that when juries look into the
individual facts, they will side with us," a Boston Scientific
spokesman was cited by Reuters as saying.

Headquartered in Natick, Massachusetts, Boston Scientific
Corporation (NYSE: BSX) -- http://www.bostonscientific.com/-- develops,
manufactures and markets medical devices used in a broad range of
interventional medical specialties.  The company has offices in Argentina,
France, Germany, and Japan, among others.

                          *     *     *

As reported in the Troubled Company Reporter on May 11, 2007,
Moody's placed Boston Scientific Corporation's ratings including
its (P) Ba1 subordinated shelf and (P) Ba2 preferred stock ratings under
review for possible downgrade.  The rating action reflects Moody's
expectation that, absent any material debt reduction, financial strength
measures over the near term will be below those identified for an
investment grade company under Moody's Global Medical Products & Device
Industry Rating Methodology.


BOSTON SCIENTIFIC: Inks Share Buyback Plan with Aspect Medical
--------------------------------------------------------------
Boston Scientific Corporation and Aspect Medical Systems, Inc. had agreed
to enter into a share repurchase plan to conclude their alliance for the
development of new brain monitoring products aimed at assisting clinicians
in the diagnosis and treatment of depression, Alzheimer's disease and
other neurological conditions.

The agreement includes these key provisions:

  1) Aspect will immediately acquire 2 million shares of Aspect
     stock now held by Boston Scientific at a price of
     approximately US$15.91 per share.  This price represents
     the average of the closing prices of Aspect stock over the
     20 most recent trading days.  Prior to this agreement,
     Boston Scientific's position in Aspect stood at
     approximately 6 million shares, or 27% of Aspect's shares
     outstanding.

  2) For a period of six months following the date of the
     agreement, Aspect will have the right to purchase any or
     all of the balance of Boston Scientific's position in
     Aspect at a price of US$15 per share, or the average of
     the closing prices of Aspect stock over the 10 trading
     days prior to Aspect exercising its right to repurchase,
     whichever is higher.  In addition, Boston Scientific has
     agreed not to sell any of its Aspect stock, except to
     Aspect, during the six month period.

  3) Boston Scientific is relieved from all current and future
     obligations to the alliance.  The neuroscience alliance
     was established in May 2005 and involved a commitment by
     Boston Scientific of US$25 million over five years to
     support research by Aspect in the depression and
     Alzheimer's markets.  To date, Boston Scientific has
     provided US$10 million of the US$25 million originally
     committed.

  4) Aspect regains all commercial rights to products developed
     under the alliance that were previously shared with Boston
     Scientific.

Aspect and Boston Scientific also agreed today that all rights and
obligations in connection with an OEM Product Development Agreement signed
in 2002 will cease effective upon closing of the share repurchase.  As
part of the 2002 Agreement, Boston Scientific held an option to distribute
products developed by Aspect in the procedural sedation space.  With
Boston Scientific declining this option, all rights to products developed
in conjunction with this agreement will revert to Aspect.  As a result of
this, Aspect will recognize approximately US$3.8 million of previously
deferred alliance revenue this quarter.

"Boston Scientific has been an outstanding partner, and we appreciate
their contribution to our success to date.  Further, we understand Boston
Scientific's desire to refocus its strategic priorities following its
recent acquisition, and we believe that this agreement creates new
opportunities for both parties," said Nassib Chamoun, president and CEO of
Aspect Medical Systems.  "We are enthusiastic about Aspect's neuroscience
program, particularly the interim results from the BRITE study that we
announced three weeks ago.  We believe that the neuroscience business will
become a great complement to our core consciousness-monitoring business in
the years ahead.  Today's share purchase from Boston Scientific speaks to
our growing financial strength and signals our confidence in our ability
to continue to grow our core business and to develop the potential of our
neuroscience program."

Mr. Chamoun continued, "We also believe that the opportunity to reacquire
full commercial rights to the products developed in the neuroscience space
will prove to be significant for Aspect longer term.  Over the coming
months, we plan to seek financing, which may be in the form of convertible
notes, in order to replenish our cash position and gain the flexibility to
exercise our option to purchase additional shares from Boston Scientific.
We believe these share purchases will provide stability and create value
for all of our shareholders."

                     Transaction Details

Under the terms of the termination and repurchase agreement signed, Aspect
and Boston Scientific have agreed that all obligations and rights granted
by either party in connection with the 2005 neuroscience strategic
alliance and the 2002 OEM product development agreement will terminate
under the agreement.  In connection with the 2002 Agreement, Boston
Scientific established a revolving credit facility available to Aspect
which was also terminated under the agreement.  Aspect has never drawn
down on this line of credit.

Aspect and Boston Scientific are also entering into a registration rights
agreement under which Boston Scientific will have the right to request
under certain circumstances that Aspect register under the Securities Act
of 1933, as amended, shares of Aspect common stock held by Boston
Scientific and not repurchased by Aspect.

                     About Aspect Medical

Aspect Medical Systems, Inc. (NASDAQ: ASPM) --
http://www.aspectmedical.com/-- produces and develops brain monitoring
technology.  The company's Bispectral Index technology has been used to
assess approximately 20 million patients and has been the subject of more
than 2,800 published articles and abstracts.  BIS technology is installed
in approximately 75 percent of hospitals listed in the July 2006 U.S News
and World Report ranking of America's Best Hospitals and in approximately
55 percent of all domestic operating rooms.  The company is also
investigating how other methods of analyzing brain waves may aid in the
diagnosis and management of neurological diseases, including depression
and Alzheimer's disease.

                    About Boston Scientific

Headquartered in Natick, Massachusetts, Boston Scientific
Corporation (NYSE: BSX) -- http://www.bostonscientific.com/-- develops,
manufactures and markets medical devices used in a broad range of
interventional medical specialties.  The company has offices in Argentina,
France, Germany, and Japan, among others.

                         *     *     *

As reported in the Troubled Company Reporter on May 11, 2007,
Moody's placed Boston Scientific Corporation's ratings including
its Baa3 senior unsecured and Prime-3 short term, under review for
possible downgrade.  The rating action reflects Moody's
expectation that, absent any material debt reduction, financial
strength measures over the near term will be below those
identified for an investment grade company under Moody's Global
Medical Products & Device Industry Rating Methodology.


DELTA AIR: Amends Credit Card Processing Agreement
--------------------------------------------------
Delta Air Lines has amended its Visa/MasterCard processing agreement to
eliminate the US$1.1 billion holdback previously required.

This holdback consisted of an US$800 million cash reserve and a related
US$300 million letter of credit.  Pursuant to the amendment, the entire
amount of the cash reserve was returned to Delta and the letter of credit
was terminated.  No future holdback or cash reserve is required except in
limited circumstances.

As a result of these changes, Delta expects to end the quarter with US$4.2
billion in liquidity, including a fully available,
$1 billion revolving line of credit.

"This new agreement reflects the strong confidence of the financial
markets in our ability to deliver on our plan's commitments," said Edward
H. Bastian, Delta's executive vice president and chief financial officer.

The company also updated its June 2007 quarter guidance today, stating
that it expects to achieve operating margins of 11 percent to 12
percent(a).  The company affirmed its previous capacity guidance issued in
April 2007, which showed consolidated domestic capacity reductions of 4
percent to 6 percent, with an associated increase in international
capacity of 14 percent to 16 percent, compared to the June 2006 quarter.

"Our plan remains on track, with our restructuring driving improvements to
both unit revenues and unit costs," Bastian continued.  "In this highly
competitive industry, Delta is uniquely positioned in its ability to
reallocate existing assets to right-size the domestic network and focus on
international growth opportunities."

Delta also filed today a Form 8-K with the U.S. Securities and Exchange
Commission that provides additional information about the amendment to the
credit card processing agreement and the June 2007 quarter guidance.

                        About Delta Air

Headquartered in Atlanta, Georgia, Delta Air Lines (NYSE:DAL)
-- http://www.delta.com/-- is the world's second-largest airline in terms
of passengers carried and the leading U.S. carrier across the Atlantic,
offering daily flights to 502 destinations in 88 countries on Delta, Song,
Delta Shuttle, the Delta Connection carriers and its worldwide partners.
Delta flies to Argentina, Australia and the United Kingdom, among others.

                        *     *     *

As reported in the Troubled Company Reporter on May 2, 2007, Standard &
Poor's Ratings Services raised its ratings on Delta Air Lines Inc.
(B/Stable/--), including raising the corporate credit rating to 'B', with
a stable outlook, from 'D', following the airline's emergence from Chapter
11 bankruptcy proceedings.


FLEXIPACKING SRL: Proofs of Claim Verification Ends on June 26
--------------------------------------------------------------
Osvaldo Pincever, the court-appointed trustee for Flexipacking S.R.L.'s
bankruptcy proceeding, verifies creditors' proofs of claim until June 26,
2007.

Mr. Pincever will present the validated claims in court as
individual reports on Sept. 6, 2007.  The National Commercial Court of
First Instance in Lomas de Zamora, Buenos Aires, will determine if the
verified claims are admissible, taking into account the trustee's opinion,
and the objections and challenges that will be raised by Flexipacking 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 Flexipacking's
accounting and banking records will be submitted in court on Oct. 18, 2007.

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

The debtor can be reached at:

         Flexipacking S.R.L.
         Nestor de la Pena 307, Lavallol
         Partido de Lomas de Zamora
         Buenos Aires, Argentina

The trustee can be reached at:

         Osvaldo Pincever
         Portela 721, Lomas de Zamora
         Buenos Aires, Argentina


GETTY IMAGES: Financial Filing Prompts S&P’s Positive Watch
-----------------------------------------------------------
Standard & Poor's Ratings Services said revised its CreditWatch
implications on Getty Images Inc. to positive from developing, following
the company's filing of its SEC 10-Q forms for its first and third
quarters, and its 2006 Form 10-K.  The corporate credit rating on the
company remains at 'B+'.

S&P originally placed the ratings on CreditWatch with developing
implications on Dec. 4, 2006, after the company had received notices from
bondholders that the delay of its third-quarter 10-Q filing constituted an
event of default.

"We will resolve the CreditWatch following a discussion with management
and an evaluation of the operating outlook," said Standard & Poor's credit
analyst Tulip Lim.

Headquartered in Seattle, Washington, Getty Images, Inc. --
http://corporate.gettyimages.com/-- creates and distributes visual
content.  The company has corporate offices in Australia, the United
Kingdom and Argentina.


LARIGEN SA: Proofs of Claim Verification Deadline Is Sept. 6
------------------------------------------------------------
Andrea I. Sita, the court-appointed trustee for Larigen SA's bankruptcy
proceeding, verifies creditors' proofs of claim until Sept. 6, 2007.

Ms. Sita will present the validated claims in court as individual reports.
The National Commercial Court of First Instance No. 1 in Buenos Aires,
with the assistance of Clerk
No. 2, will determine if the verified claims are admissible, taking into
account the trustee's opinion, and the objections and challenges that will
be raised by Larigen 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 Larigen's
accounting and banking records will be submitted in court.

La Nacion did not state the reports submission dates.

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

The debtor can be reached at:

         Larigen SA
         Santa Fe 995
         Buenos Aires, Argentina

The trustee can be reached at:

         Andrea I. Sita
         Cramer 2075
         Buenos Aires, Argentina


MENDOCAP SRL: Trustee To File Individual Reports on Aug. 10
-----------------------------------------------------------
Iria Lourdes Navarro, the court-appointed trustee for Mendocap S.R.L.'s
bankruptcy proceeding, will present creditors' validated claims as
individual reports in the National Commercial Court of First Instance in
Mendoza on Aug. 10, 2007.

The court will determine if the verified claims are admissible,
taking into account the trustee's opinion and the objections and
challenges raised by Mendocap and its creditors.

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

Ms. Navarro verified creditors' proofs of claim until
June 13, 2007.

Ms. Navarro will also submit to court a general report containing an audit
of Mendocap's accounting and banking records on Sept. 24, 2007.

The debtor can be reached at:

          Mendocap S.R.L.
          Espejo Oeste 768, La Colonia
          Departamento Junin, Mendoza
          Argentina

The trustee can be reached at:

          Iria Lourdes Navarro
          Almirante Brown 355, San Martin
          Mendoza, Argentina


PLAMEC SAIC: Proofs of Claim Verification Deadline Is July 6
------------------------------------------------------------
Victor Daniel Lamaison, the court-appointed trustee for Plamec S.A.I.C.'s
bankruptcy proceeding, verifies creditors' proofs of claim until July 6,
2007.

Mr. Lamaison will present the validated claims in court as individual
reports on Aug. 20, 2007.  The National Commercial Court of First Instance
in Quilmes, Buenos Aires, will determine if the verified claims are
admissible, taking into account the trustee's opinion, and the objections
and challenges that will be raised by Plamec 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 Plamec's
accounting and banking records will be submitted in court on Sept. 28, 2007.

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

The trustee can be reached at:

         Victor Daniel Lamaison
         San Martin 730, Quilmes
         Buenos Aires, Argentina


RADIO TAXI: Proofs Of Claim Verification Is Until Sept. 12
----------------------------------------------------------
Miguel Rudnitzky, the court-appointed trustee for Radio Taxi Platino SRL's
bankruptcy proceeding, verifies creditors' proofs of claim until Sept. 12,
2007.

Mr. Rudnitzky will present the validated claims in court as individual
reports.  The National Commercial Court of First Instance No. 21 in Buenos
Aires, with the assistance of Clerk No. 41, 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 Radio Taxi 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 Radio Taxi's
accounting and banking records will be submitted in court.

La Nacion did not state the reports submission dates.

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

The debtor can be reached at:

         Radio Taxi Platino SRL
         Nicasio Orono 2347
         Buenos Aires, Argentina

The trustee can be reached at:

         Miguel Rudnitzky
         Parana 426
         Buenos Aires, Argentina


REINANACE SA: Proofs of Claim Verification Ends on Sept. 10
-----------------------------------------------------------
Julio C. Moraleja, the court-appointed trustee for Reinanace SA's
bankruptcy proceeding, verifies creditors' proofs of claim until Sept. 10,
2007.

Mr. Moraleja will present the validated claims in court as individual
reports.  The National Commercial Court of First Instance No. 20 in Buenos
Aires, with the assistance of Clerk No. 39, 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 Reinanace 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 Reinanace's
accounting and banking records will be submitted in court.

La Nacion did not state the reports submission dates.

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

The debtor can be reached at:

         Reinanace SA
         Esmeralda 754
         Buenos Aires, Argentina

The trustee can be reached at:

         Julio C. Moraleja
         Junin 55
         Buenos Aires, Argentina


SCHENFELD SA: Proofs of Claim Verification Is Until Aug. 6
----------------------------------------------------------
Anibal Diego Carrillo, the court-appointed trustee for Schenfeld S.A.'s
bankruptcy proceeding, verifies creditors' proofs of claim until Aug. 6,
2007.

Mr. Carrillo will present the validated claims in court as individual
reports on Sept. 17, 2007.  The National Commercial Court of First
Instance in Buenos Aires will determine if the verified claims are
admissible, taking into account the trustee's opinion, and the objections
and challenges that will be raised by Schenfeld 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 Schenfeld's
accounting and banking records will be submitted in court on Oct. 29, 2007.

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

The trustee can be reached at:

         Anibal Diego Carrillo
         Juncal 615
         Buenos Aires, Argentina


URBANO CLOTHES: Proofs of Claim Verification Ends on Aug. 29
------------------------------------------------------------
Carlos Puerta, the court-appointed trustee for Urbano Clothes S.R.L.'s
bankruptcy proceeding, verifies creditors'
proofs of claim until Aug. 29, 2007.

Mr. Puerta will present the validated claims in court as
individual reports.  The National Commercial Court of First Instance No.
24 in Buenos Aires, with the assistance of Clerk No. 47, 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 Urbano
Clothes 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 Urbano Clothes'
accounting and banking records will be submitted in court.

La Nacion did not state the reports submission deadlines.

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

The debtor can be reached at:

         Urbano Clothes S.R.L.
         Serrano 955
         Buenos Aires, Argentina

The trustee can be reached at:

         Carlos Puerta
         Fragata Presidente Sarmiento 72
         Buenos Aires, Argentina


YPF SA: JP Morgan Maintains Underweight Rating on Repsol
--------------------------------------------------------
JP Morgan analysts have kept their "underweight" rating on the shares of
YPF SA's parent Repsol, Newratings.com reports.

Newratings.com relates that the target price for Repsol's shares was
increased to EUR24.50 from EUR23.50.

The analysts said in a research note that the proposed sale of Repsol’s
assets in Latin America to Argentine unit YPF as well as the sale or
initial public offering of a stake in YPF are unlikely to unlock
substantial value in Repsol’s shares.

Repsol will make acquisitions in the exploration and production market,
which would boost investment risk, Newratings.com says, citing the
analysts.

The earnings per share estimate for Repsol's shares next year was
increased to EUR2.42 from EUR2.40.

                        About Repsol

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

                       About YPF SA

Headquartered in Buenos Aires, Argentina, YPF S.A. 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: Cadivi Allows US$416 Million for Trade Exchange
------------------------------------------------------------
Cadivi, Venezuela's Foreign Exchange Management Committee, has
authorized up to US$416 million for Venezuelan-Argentinian trade exchange
until May 31, Caracas daily El Universal reports.

Manuel Barroso, Cadivi's head, disclosed that US$294 million has been
devoted to imports under a convention of the Latin American Integration
Association, in addition to US$118 million for ordinary imports and
US$1.87 million on account of foreign investment, El Universal says.

Among the goods exchanged are: antibiotics and anesthetics for human use,
human milk, powdered milk, oil, cargo vehicles, tractors, carriers for up
to 16 people, automobile spare parts and bottles, official news agency ABN
reported.

                        *     *     *

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


INTERPOOL: Commences Tender Offer for US$230MM of 6% Sr. Notes
--------------------------------------------------------------
Interpool, Inc. has commenced a tender offer for all of
US$230 million principal amount of its outstanding 6.0% Senior Notes due
2014.

In connection with the tender offer, consents are being solicited from
noteholders to make certain proposed amendments to the indenture governing
the Notes.

Pursuant to the terms and subject to the conditions set in the Offer to
Purchase and Consent Solicitation Statement dated
June 13, 2007, the company is offering to purchase all of the outstanding
Notes at a price of US$1,015.00 per US$1,000 principal amount of the
Notes.  The Total Consideration includes US$20.00 per US$1,000 principal
amount of Notes payable only in respect of Notes validly tendered with
consents on or prior to the Consent Date.

In addition, holders who validly tender and do not validly withdraw their
Notes in the tender offer will receive accrued and unpaid interest from
the last interest payment date up to, but not including, the date of
payment for the Notes, if the Notes are accepted for purchase pursuant to
the tender offer.

The tender offer is scheduled to expire at 8:00 a.m., New York City time,
on July 19, 2007, unless extended.  Holders who tender their Notes after
5:00 p.m., New York City time, on
June 26, 2007, unless extended, will not be eligible to receive the
Consent Payment.  Any holder validly tendering Notes after the Consent
Date will, if such Notes are accepted for purchase pursuant to the tender
offer, receive the Tender Offer Consideration, plus accrued but unpaid
interest to, but not including, the date of payment for the Notes so
tendered.

The proposed amendments to the indenture governing the Notes would, among
other things, eliminate substantially all of the restrictive covenants,
certain events of default and certain other provisions contained in the
indenture.

Completion of the tender offer is subject to the satisfaction of certain
conditions, including, but not limited to, receipt of valid tenders and
consents from a majority in principal amount of outstanding Notes, receipt
by Interpool of the funds necessary to make all payments required to
complete the tender offer, including interest and other costs and expenses
related to the tender offer, and the satisfaction or waiver of all
conditions precedent to the consummation of the merger of Interpool and
Chariot Acquisition Sub, Inc., an indirect wholly owned subsidiary of
funds managed by affiliates of Fortress Investment Group LLC, and the
expectation that the Merger will be consummated immediately following the
Expiration Date.  Consummation of the tender offer is not a condition to
the Merger, and Chariot expects that its ability to finance the
transactions contemplated by the Merger and pay related transaction fees
and expenses will not be impaired if the tender offer is not consummated.

The exclusive dealer manager and solicitation agent for the tender offer
is Bear, Stearns & Co. Inc.

                        About Interpool

Interpool, Inc. (NYSE: IPX) is a supplier of equipment and services to the
transportation industry.  It is a lessor of intermodal container chassis
and a world-leading lessor of cargo containers used in international
trade.  The company has operations in Barbados, Singapore and Basel.

                         *     *     *

As reported in the Troubled Company Reporter on Apr. 26, 2007,
Interpool announced that it had entered into a definitive agreement to be
acquired by certain private equity funds managed by affiliates of Fortress
Investment Group LLC pursuant to a merger in which all IPX stockholders
would receive US$27.10 in cash for each share of IPX common stock that
they hold.  The total transaction value, including assumed debt, is
approximately US$2.4 billion.

Fitch placed the ratings of Interpool and its related subsidiaries on
Rating Watch Negative on Jan. 17, 2007.  The action reflected Fitch
concerns regarding the underlying financing structure of a proposed
acquisition offer led by its current chief executive officer, Marty
Tuchman for US$24 per share of common stock.




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


QUANTA CAPITAL: Attracts Strong Investor Interest
-------------------------------------------------

The price of Quanta Capital Holdings Ltd.'s shares has increased by 10.5%,
Jonathan Kent at The Royal Gazette reports.  The company has attracted
strong investor interest over the past week, after the firm disclosed on
June 4, 2007, that it would buy back all of its series A preferred shares
at US$20 per share.

Quanta Capital beat analysts' expectations when it reported a
US$4.6-million profit in the first quarter 2007.

The Royal Gazette's Mr. Kent relates that Quanta Capital's share price
dropped 50% in the first week of March 2006 to US$2.35 as it became clear
the firm would disclose higher-than-expected fourth-quarter losses from
2005.  Since then, the stock has been struggling at or below that level.

The report says that Quanta Capital "went into run-off" in 2006, excluding
its lines of business done through Lloyd's Syndicate 4000, after AM Best
rated it below the 'A' range.  The downgrade followed Quanta Capital's
announcement in January 2006 that it understated its net losses "related
to a ruptured oil pipeline in California" by US$4.9 million.  The firm
already incurred around US$50 million losses from the 2004 hurricane
season, which was then followed by further heavy catastrophe losses in
2005.

Quanta Capital this year is fighting a class action lawsuit before the
U.S. District Court in New York on alleged issuance of a series of false
and misleading statements to the market between Dec. 14, 2005, and March
2, 2006.  Some firms representing investors in the lawsuit claim that the
alleged act "artificially inflated" Quanta Capital's stock price, The
Royal Gazette's Mr. Kent states.

Headquartered in Hamilton, Bermuda, Quanta Capital Holdings Ltd.
(NASDAQ: QNTA) -- http://www.quantaholdings.com/-- operates its
Lloyd's syndicate in London and its environmental consulting
business through Environmental Strategies Consulting in the
United States.  The Company is in the process of running off its
remaining business lines.  The Company maintains offices in
Bermuda, the United Kingdom, Ireland and the United States.

                        *    *    *

As reported in the Troubled Company Reporter on Aug. 15, 2006,
Quanta Capital Holdings Ltd. continues to work with its lenders
regarding an amendment to its credit facility and an extension
to its waiver period, which expired Aug. 11, 2006.

On June 7, 2006, A.M. Best Co. downgraded the financial strength
ratings to B from B++ and the issuer credit ratings to bb from
bbb for the insurance/reinsurance subsidiaries of Quanta Capital
Holdings Ltd.  These rating actions apply to Quanta Reinsurance
Ltd., its subsidiaries and Quanta Europe Ltd.  A.M. Best also
downgraded Quanta's ICR to b from bb and the securities rating
to ccc from b+ for its US$75 million 10.25% Series A non-
cumulative perpetual preferred shares.  All ratings have been
removed from under review with negative implications and
assigned a negative outlook.

The company disclosed that the A.M. Best rating action triggered
a default under Quanta's credit facility.




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


ALLIANCE ONE: Restating Results for First Three Quarters of 2007
----------------------------------------------------------------
Alliance One International Inc. is restating the first three
quarters of results for fiscal year 2007 to correct a cumulative
understatement of income tax expense.

For the quarter ended June 30, 2006, the two quarters ended
Sept. 30, 2006, and the three quarters ended Dec. 31, 2006, the
cumulative understatements are US$1.5 million, US$4 million and
US$8.7 million, respectively.  The cumulative understatement during these
unaudited quarters, which management identified, has not increased the
company’s total expected cash taxes, and as such will not have any net
effect on liquidity. The company plans to amend and restate its quarterly
reports on Form 10-Q for each of these periods, and to file its annual
report on Form 10-K for fiscal year 2007 as soon as practicable.

The audit committee of the company's board of directors, upon the
recommendation of the company's management, has concluded that the
previously issued financial statements for the first three quarters of
fiscal year 2007 should no longer be relied upon.  The company is
currently evaluating but anticipates that the errors constitute a material
weakness or weaknesses in the
company’s internal controls over financial reporting.

Separately, the company is expecting to exceed its previous
underlying earnings guidance of US$0.25 to US$0.32 per share for the
fiscal year ended March 31, 2007.

                       About Alliance One

Based in Morrisville, North Carolina, Alliance One International
Inc. (NYSE: AOI) -- http://www.aointl.com/-- is a leaf tobacco
merchant.  The company has worldwide operations in Argentina,
Bangladesh, Brazil, Bulgaria, Canada, China, France, Indonesia,
Philippines, Malaysia, and Singapore.

                        *     *     *

Alliance One International Inc. continues to carry Moody’s
Investors Service's B2 long-term corporate family rating,
B1 bank loan debt rating, B2 senior unsecured debt rating,
Caa1 subordinated debt rating, and B2 probability-of-default
rating.  The ratings outlook is stable.

The company also carries Standard & Poor's B+ long-term foreign
and local issuer credit ratings.  The ratings outlook negative.

                         *     *     *

As reported in the Troubled Company Reporter on June 6, 2007, Standard &
Poor's Ratings Services assigned its 'BB-' rating to Actuant Corp.'s
proposed US$250 million senior unsecured notes due2017.  The proceeds from
the notes will be principally used to repay a portion of borrowings under
the company's senior credit facility due 2009.


BANCO INDUSTRIAL: Applying for US$1-Million Loan from IADB
----------------------------------------------------------
The Inter-American Development Bank told Business News Americas that it
will provide a US$100-million A/B loan to Brazil's Banco Industrial e
Comercial.

The Inter-American Development explained to BNamericas that it has already
authorized the loan, which will help improve Banco Industrial's financing
composition while supporting the business growth required to meet expected
demand from individuals, middle-market corporations and small and
medium-sized enterprises for their core products, letting Banco Industrial
become more competitive.

Inter-American Development's project team leader Daniela Carrera Marquis
told BNamericas that Brazil's middle-market banks are key to boosting
banking penetration rate to the small and middle-cap sectors.

Ms. Marquis commented to BNamericas, "This credit segment is still
underserved and middle-market banks face funding challenges, especially
when compared to large retail banks."

The loan will help Banco Industrial improve the tenure of its loan
portfolio and supports.  It will also support the bank's efforts to
diversify funding sources to promote the growth in business required to
satisfy expected demand for corporate loans and other core products,
BNamericas states, citing Inter-American Development.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
March 1, 2007, Standard & Poor's Ratings Services assigned its
'B+' counter party credit rating to Banco Industrial e Comercial
SA.  S&P said the outlook was stable.


BANCO NACIONAL: Okays BRL101MMM Funding for Votorantim Metais
-------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social has authorized a
BRL101-million funding for the nickel unit of metals firm Votorantim
Metais in Goias, Business News Americas reports.

Banco Nacional said in a statement that the funds will be used to pay for
the replacement of fuel oil boilers for a boiler that will use green coke
from petroleum.  The new equipment is able to generate 200 tons per hour
of steam.

Investment in the Niquelandia unit project will total BRL193 million,
BNamericas states.

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

                        *     *     *

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


BANCO NACIONAL: Seeks To Boost Stake in Grupo Rede
--------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social has asked power group
Grupo Rede to convert its debentures into preferred shares to give the
bank a 21.8% stake, according to a statement by Grupo Rede.

Business News Americas relates that Banco Nacional's proposal would give
the bank 1.84 million preferred shares in exchange for 3.73 million
debentures.  Banco Nacional holds the debentures from Grupo Rede's first
debentures sale.  The bank would trade some 18.7 million preferred shares
for about 3.73 million debentures it holds from Grupo Rede's second sale.

Once Grupo Rede's board authorizes the conversion, Banco Nacional would
own 79.5% of the group's preferred shares, according to BNamericas.  Banco
Nacional would also have a 21.8% stake Grupo Rede.

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.


COMPANHIA SIDERURGICA: Will Start Producing Cement in March 2008
----------------------------------------------------------------
Companhia Siderurgica Nacional's commercial director Luis Fernando
Martinez told Business News Americas that the company wants to produce its
first bag of cement in March 2008.

BNamericas relates that Mr. Martinez said in a presentation in Sao Paulo
that the cement unit in Volta Redonda, Rio de Janeiro, will sell 90% of
production on the retail market.

According to BNamericas, the investment in the three-million-ton-per-year
plant will total US$100 million.

Companhia Siderurgica also wants to start production at its
500,000-ton-per-year long steel plant in August or September 2007,
BNamericas says, citing Mr. Martinez.  The project will produce
reinforcing bars and wire rods.  It will need a US$110-million additional
disbursement.

Mr. Martinez told BNamericas, "CSN [Companhia Siderurgica] wants to be a
consolidator in the worldwide steel industry."  The company doesn't want
to be a takeover target despite several failed attempts by the steelmaker
to acquire others.

"But there are other opportunities that we are looking at," Mr. Martinez
commented to BNamericas.

Companhia Siderurgica Nacional is one of the lowest-cost steel
producers in the world, which is a result of its access to
proprietary, high-quality iron ore (at the Casa de Pedra mine);
self-sufficiency in energy; streamlined facilities; and
logistics advantages.  This is in addition to the group's strong market
position in the fairly concentrated steel industry in Brazil.

                        *     *     *

On Jan. 26, 2006, Standard and Poor's Rating Services assigned a 'BB'
corporate credit rating on Brazilian flat carbon steelmaker Companhia
Siderurgica Nacional.

The 'BB' corporate credit rating on CSN reflects the company's
exposure to volatile demand and price cycles, increasing
competition in its home and predominant market of Brazil,
aggressive dividend policy and capital investment plan, and
sizable gross-debt position.  These risks are partly offset by
CSN's privileged cost position and sound operating profile,
favorable market position in Brazil, strong export capabilities
to offset occasional domestic demand sluggishness, and
increasing business diversification.


GERDAU AMERISTEEL: Pacific Coast To Buy Valley Placers' Assets
--------------------------------------------------------------
Gerdau Ameristeel's joint venture Pacific Coast Steel will purchase the
assets of reinforcing steel contractor Valley Placers for an undisclosed
sum, Business News Americas reports.

According to Gerdau Ameristee's statement, the transaction would conclude
in 30 days.

Brazilian brokerage Brascan Corretora said in a report that the
announcement is good for Gerdau SA since a focus on downstream operations
is one of its expansion strategies in North America.

Brascan Corretora commented to BNamericas, "Since we don''t have any
information about VPI's [Valley Placers] operational capacity or even the
acquisition cost, it''s hard to make a more detailed analysis of this new
asset."

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 was stable.


LOCALIZA RENT: Moody's Assigns Ba1 Global-Local Currency Rating
---------------------------------------------------------------
Moody's America Latina assigned a Ba1 global local currency  rating and a
Aa2.br Brazilian national scale rating to Localiza Rent a Car S.A.'s
senior unsecured debentures due in 2014.  The rating outlook is stable.

"The Ba1 GLC and Aa2.br Brazilian national scale rating for Localiza's
senior unsecured rating is supported by the company's leading market
position and strong brand in the Brazilian car rental market, its
efficient and geographically extensive distribution network in Brazil, the
benefits of its integrated business platform, its experienced management
team, the liquidity of its assets and the positive fundamentals for the
Brazilian car rental industry" commented Moody's analyst Soummo
Mukherjee.

At the same time, Localiza's Ba1 GLC and Aa2.br Brazilian NSR rating is
constrained by the highly cyclical and capital-intensive nature of its
business; the higher gross debt levels following the proposed debentures
issuance, its small size in terms of revenues, the company's lack of a
significant international geographic footprint and its relatively weaker
gross interest coverage ratios when compared to some of its global
industry peers and similarly-rated cross-industry Brazilian peers.

Localiza's Ba1 global local currency issuer rating reflects its global
default and loss expectation, while the Aa2.br national scale rating
reflects the standing of Localiza's credit quality relative to its
domestic peers.  Moody's National Scale Ratings  are intended as relative
measures of creditworthiness among debt issues and issuers within a
country, enabling marketparticipants to better differentiate relative
risks.  NSRs in Brazil are designated by the ".br" suffix.  NSRs differ
from global scale ratings in that they are not globally comparable to the
full universe of Moody's rated entities, but only with other rated
entities within the same country.

Although Localiza's revenues of approximately USD 527 million make it the
smallest rated car rental company in the global industry, the company
enjoys a dominant market position in the Brazil car rental industry with
market share of approximately 20% in what is a highly fragmented market.
Moreover, Localiza is twice the size of its next largest competitor.  This
gives the company superior bargaining power with suppliers and significant
economies of scale on its fixed costs.   Additionally, with 278 agencies
in Brazil, Localiza benefits from the largest network in the industry with
strategic locations all across Brazil to access both the on and
off-airport markets, including the fast-growing replacement
car market.

Localiza's operates in four main businesses: daily car and fleet
rental, franchising, and used-car sales due to avoid sales intermediation
costs.  While the company's growth strategy and cash flow generation is
concentrated on its rental and fleet management businesses, the company's
franchising business (representing approximately 1% of the company's net
revenues) is strategic in terms of consolidating Localiza's brand and
exploring new markets.  Its used-car sales division is key to managing the
real depreciation of its cars and adds flexibility to manage its fleet
size in the case of an economic downturn. At the end of March 31, 2007,
Localiza's total fleet value using the average sale price of the last
twelve months was approximately BRL995 million, which covered its total
pro-forma debt (following the BLR200 million debentures issuance) by 1.2
times.

Car manufacturers do not provide repurchase or guaranteed depreciation
arrangements protecting Brazilian car rental companies against unfavorable
market conditions upon disposition of vehicles.  Thus, Localiza bears the
risk of profit or loss on resale of its fleet, which makes its proper
management of buying and selling cars a critical aspect for its operating
performance.  The company has 30 company-owned used car sales
locations in 16 cities to aid in its successful sale of used cars and
approximately 80% of Localiza's used cars are sold directly to the public
through its own sales channels.

Localiza's stable outlook is based on Moody's expectation that the company
will continue to successfully execute its growth strategy with access to
the capital markets and benefit from the continued favorable trends, such
as lower interest rates, supporting economic growth and business activity
in Brazil . Upward pressure on Localiza's current rating could arise from
a consistent gain in market share, size in revenue terms and scale while
maintaining Gross Debt to EBITDA below 2.5 times and
achieving EBITDA coverage above 5 times.

Conversely, negative pressure on the current outlook or ratings could
arise should the outlook for the Brazilian economy and car rental market
turn adverse, thus negatively impacting Localiza's operating performance
and overall access to financing. Quantitatively, Localiza's rating could
come under downward pressure if EBITDA margins for its fleet management
and car rental business were to fall below 45%, EBITDA coverage to
fall below 3 times or if Gross Debt to EBITDA exceeded 3.0 times on a
sustained basis.

Localiza, founded in 1973 and headquartered in Belo Horizonte,
MinasGerais, Brazil, operates car rental, fleet management, and used car
businesses in Brazil, and franchises rental car operations throughout
Latin America.  At the end of March, 2007, Localiza had a total fleet of
38,800 cars and 316 car rental locations (278 in Brazil, with 145
company-owned) in nine countries.  Localiza is the market leader in Brazil
in each
of the car rental lines of business, including replacement and fleet
management markets, and also has the largest number of car rental
locations at the principal Brazilian airports.


PETROLEO BRASILEIRO: P-52 Oil Rig Project Surpassing Budget
-----------------------------------------------------------
Brazilian state-owned oil company Petroleo Brasileiro SA told local
newswire Estado that its P-52 oil rig construction project is coming in
20% over budget.

The project’s cost increased to US$1.1 billion, from the US$906 million
set out in the contract signed in 2003, Petroleo Brasileiro’s Engineering
Executive Manager Pedro Barusco said at a press conference ahead of the
official launch of the rig by Brazilian President Luiz Inacio Lula da
Silva that

Mr. Barusco explained to BNamericas, "There were three factors (that
pushed up the cost) -- small adjustments in the project, forex variations
and a rise in the price of steel."

Alastair Stewart at Dow Jones Newswires relates that the P-52 platform is
mainly “Brazilian built.”  The rig will have an output capacity of 180,000
barrels daily.  It will be installed in the Roncador field, in the Campos
basin, in the first half of September.

Petroleo Brasileiro’s Exploration and Production Director Guilherme
Estrella told Dow Jones’ Mr. Stewart that the company launched operations
at four other oil production platforms in 2007.  However, Petroleo
Brasileiro isn’t expected to reach its production target of 1.91 million
barrels a day.   Production will be around 1.88 million barrels per day,
lower than what was expected due to delays in bringing some projects on
line and problems with the extraction of oil from the Golfinho field.

Mr. Stewart notes that the four other rigs that increased Petroleo
Brasileiro’s output this year include:

          -- P-34 rig, which started pumping heavy oil from the
             Jubarte field in December 2006;

          -- FPSO Cidade de Vitoria platform, which is slated to
             add another 100,000 barrels a day to output from
             the Golfinho light oil field;

          -- a small platform in the Piranema field; and

          -- Siri field project in the Campos basin.

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.




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


CABLE & WIRELESS: May Not Meet Service Requirements in 15 Days
--------------------------------------------------------------
Cable & Wireless’ Panamanian unit told local daily La Prensa that the
15-day deadline imposed by the public services regulator Autoridad
Nacional de los Servicios Publicos to reestablish service in areas where
copper cable has been stolen is too short.

Cable & Wireless Panama said in a statement that the regulatory
requirement is difficult to comply with, as many of the reinstalled
equipment is immediately stolen as soon as it is replaced.

Cable & Wireless told Business News Americas that it has implemented
measures to prevent further theft like:

          -- the deployment of video cameras,
          -- alarms,
          -- private security, and
          -- police assistance.

The cable robbed last year is estimated to cost US$2.3 million, BNamericas
notes, citing Cable & Wireless.

ASEP insisted on the 15-day requirement, as it is unacceptable that some
of Cable & Wireless' customers have had to wait up to 10 months for their
telephony service to be restored while the firm continues to charge them
for service, BNamericas states.

Headquartered in London, Cable & Wireless Plc --
http://www.cw.com/new/-- provides voice, data and IP (Internet
Protocol) services to business and residential customers, as
well as services to other telecoms carriers, mobile operators
and providers of content, applications and Internet services.
The company has operations are in the United Kingdom, India,
China, the Cayman Islands and the Middle East.

                         *     *     *

In April 2007, in connection with the implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the corporate families in the Telecommunications, Media
and Technology sector, Moody's
Investors Service confirmed its Ba3 Corporate Family Rating for
Cable & Wireless Plc.

Moody's also assigned a Ba3 Probability-of-Default rating to the
company.

* Issuer: Cable & Wireless Plc

                                             Projected
                           Debt     LGD      Loss-Given
   Debt Issue              Rating   Rating   Default
   ----------              -------  -------  --------
   4% Senior Unsecured
   Conv./Exch.
   Bond/Debenture
   Due 2010                B1       LGD4     60%

   GBP200 million
   8.75% Senior
   Unsecured Regular
   Bond/Debenture
   Due 2012                B1       LGD4     60%


EM CAPITAL: Proofs of Claim Filing Is Until July 20
---------------------------------------------------
EM Capital Ltd.'s creditors are given until July 20, 2007, to
prove their claims to Richard L. Finlay, 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.

EM Capital’s shareholders agreed on June 1, 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 L. Finlay
         Attention: Krys Lumsden
         P.O. Box 2681
         Grand Cayman KY1-1111
         Cayman Islands
         Telephone: (345) 945 3901
         Fax: (345) 945 3902


KENWALL LTD: Proofs of Claim Filing Deadline Is July 25
-------------------------------------------------------
Kenwall Ltd.'s creditors are given until July 25, 2007, to
prove their claims to Richard Gordon and Andrew Dean, 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.

Kenwall Ltd.’s shareholders agreed on June 1, 2007, to place the
company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

         CDL Company Ltd.
         P.O. Box 31106
         Grand Cayman, KY1-1205
         Cayman Islands


ORCHID FUNDING: Proofs of Claim Filing Is Until July 12
-------------------------------------------------------
Orchid Funding Corp.'s creditors are given until July 12, 2007, to prove
their claims to Martin Couch and Emile Small, 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.

Orchid Funding’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 liquidators can be reached at:

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


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

SD Funding’s shareholders agreed on May 28, 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
         George Town, Grand Cayman
         Cayman Islands


SEQUILS-GLACE: Proofs of Claim Must be Filed by July 12
-------------------------------------------------------
Sequils-Glace Bay Ltd.'s creditors are given until
July 12, 2007, to prove their claims to Phillip Hinds and Jan Neveril, 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.

Sequils-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


SHINSEI FUNDING: Proofs of Claim Filing Is Until July 12
--------------------------------------------------------
Shinsei Funding One TMK Holding's creditors are given until
July 12, 2007, to prove their claims to Martin Couch and Jan Neveril, 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.

Shinsei Funding’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


TIAA HIGH: Proofs of Claim Filing Ends on July 12
-------------------------------------------------
Tiaa High Yield CDO I Ltd.'s creditors are given until
July 12, 2007, to prove their claims to George Bashforth and Richard
Gordon, 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.

Tiaa High’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
         George Town, Grand Cayman
         Cayman Islands


WRIGLEY CDO: Proofs of Claim Filing Deadline Is July 12
-------------------------------------------------------
Wrigley CDO Ltd.'s creditors are given until July 12, 2007, to
prove their claims to Richard Gordon and Andrew Dean, 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.

Wrigley CDO’s shareholders agreed on May 31, 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
         George Town, Grand Cayman
         Cayman Islands




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


AES GENER: Secures US$440-Million Loan for Nueva Ventanas Plant
---------------------------------------------------------------
Published reports say that AES Gener has secured a
US$440-million, 15-year loan for its 267-megawatt Nueva Ventanas
coal-fired plant.

Business News Americas relates that Nueva Ventanas in region V will launch
operations by 2010.  It has sold power under a 15-year toll.

"Bankers Calyon and Fortis Merchant & Private Banking have closed a
syndication of non-recourse debt financing for Nueva Ventanas," BNamericas
states, citing Fortis Merchant.

AES Gener is the second-largest electricity generation group in
Chile in terms of generating capacity (20% market share) with an
installed capacity of 2,428 megawatts.  Gener serves both the
Central Interconnected System or SIC and the Northern
Interconnected System or SING through various subsidiaries and
related companies, including affiliate Guacolda and the
TermoAndes subsidiary.  TermoAndes has a generation capacity of
642.8 megawatts, which while located in Argentina serves Chile's
SING via InterAndes transmission line.  Gener also participates
in electricity generation in Colombia through Chivor
hydroelectric plant of 1,000 megawatts, and a 25% participation
in Itabo's facilities in the Dominican Republic (432.5
megawatts).  Gener is 91.2% owned by AES (IDR rated 'B+' by
Fitch).

                        *     *     *

On June 16, 2006, Fitch Ratings upgraded the local and foreign
currency Issuer Default Ratings of AES Gener SA to 'BB+' from
'BB'.  Fitch also upgraded Gener's senior unsecured debt rating,
which consists of US$400 million senior notes due 2014, to
'BB+'.  Moreover, Fitch revised Gener's Rating Outlook to
Positive from Stable.




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


* COLOMBIA: Selling Stake in Interconexion Electrica
----------------------------------------------------
James Attwood at Bloomberg News reports that the Colombian government will
sell its stake in Interconexion Electrica SA.

Colombian Finance Minister Oscar Zuluaga told the press that the
government will also sell its holdings in Medellin-based ISA and generator
Isagen SA for a total of COP4.5 trillion.

According to Mr. Attwood, the Colombian government holds a 56% stake in
ISA, while utility Empresas Publicas de Medellin owns 10%.  Minister
Zuluaga didn't disclose how the government will sell the stake.

Mr. Attwood also discussed a series of 2008 spending and financing goals,
including a plan to raise US$1 billion from foreign loans and bonds.

Rupert Stebbings, a trader at brokerage Asesores en Valores, told Mr.
Attwood, “Potentially this stock could go a long way in the next year.
It's the No. 1 energy transmission company in Latin America so it's got
tremendous value.  The second thing is what happens when they open the
books and get 10 foreign companies that want to bid for it.  I think
they'll look for a stakeholder, someone to take it over.”

Meanwhile, the government expects to raise as much as US$5 billion from
the sale of a 20% stake in state-run oil firm Ecopetrol SA on the
Colombian Stock Exchange beginning Aug. 27, Mr. Attwood states, citing
Ecopetrol President Javier Gutierrez.

As reported in the Troubled Company Reporter-Latin America on June 15,
2007, 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 US dollars.




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


AES CORP: E-Mails Show Politicians' Involvement in Tax Breach
-------------------------------------------------------------
Thomas J. Prohaska at the Buffalo News reports that internal AES Corp.
E-mails presented in the State Supreme Court as evidence indicated that
top Niagara County politicians were involved in a tax-break deal for the
firm long before it became public in September 2006.

As reported in the Troubled Company Reporter-Latin America on May 9, 2007,
the U.S. State Supreme Court Justice Richard C. Kloch Sr. postponed a
hearing on the multiple lawsuits over the AES Corp. property tax break.
The Niagara county, the Town of Somerset and the Barker Central School
District filed a lawsuit against AES and the Industrial Development Agency
over the "payment-in-lieu-of-taxes deal," which will cost the taxing
entities US$43.4 million over 12 years, compared with what they would
collect from AES if the firm's Lake Road power plant continued to be taxed
at the current rate.  Those who are against the deal said that of one
assumes a 3% yearly tax raise, the lost revenue tops US$90 million.  The
hearing was postponed
indefinitely.  Attorneys in the case said that the proceedings
might resume in August or later.

Mr. Prohaska relates that the E-mails showed that State Sen. George D.
Maziarz and his aide joined Henry M. Sloma, the Industrial Development
Agency chairperson, in a meeting to arrange a tax break for AES two months
before the application was publicly released.

Mr. Maziarz attended the first meeting on July 19, 2006.  County
Republican Party Chairprson Henry F. Wojtaszek also attended in another
session on Aug. 8, the Buffalo News' Mr. Prohaska says, citing the
E-mails.

Mr. Wojtaszek told Mr. Prohaska that he didn’t remember the meeting, which
the E-mail indicated included Sean Griffin, an attorney for the IDA.

"I was never at a meeting with Sean Griffin and Henry Sloma at the same
time," Mr. Wojtaszek commented to Mr. Prohaska.  Mr. Wojtaszek explained
that he had other meetings with Mr. Sloma where he discussed the political
environment in the county.

Mr. Prohaska, "I’m an elected official.  I meet with people all the time.
I’ve talked with all sides of this issue.  I’ve met with the Barker School
District to discuss increased state aid, and I’ve met with the Somerset
Town Board and AES jointly."

The report says that Mr. Sloma and other IDA board members would be called
to the witness stand.

Mr. Prohaska notes that Mr. Maziard was asked if AES requested him to
attend the July 19 meeting to get him to use his political influence to
secure authorization for the "PILOT."  However, Maziarz answered, "They
[AES] were more interested in eliciting my approval to win that clean coal
initiative."

According to Mr. Prohaska, AES Project Manager Jon Reimann insisted that
the company wouldn’t have applied for a state contract to build a
US$1-billion clean coal power plant unless the IDA gave AES a "PILOT"
arrangement on its existing plant.

Mr. Prohaska reports that the county is alleging that AES planned apply
for rights to construct the new plant whatever the result of its demand
for a tax break on the old one.  The county accused AES of fraud.

Mr. Prohaska says that Mr. Reimann said in an Aug. 9 E-mail to AES
Somerset President Kevin R. Pierce, "The county stated they need to create
a defensible position/fact pattern for a PILOT (beyond the information
they have) since this will be scrutinized by the jurisdictions and the
public."

The report says that  the E-mails and a Powerpoint presentation "make no
overt reference" to AES' public claim that a tax break for its plant was a
condition for seeking to construct a new one.  Still, Mr. Reimann insisted
that was AES' position.

At one point Mr. Reimann denied that he had written something that was in
an E-mail he signed, according to Mr. Prohaska.

One point in the Powerpoint printout indicated that AES was making the tax
break a condition of the bid, the Buffalo News says, citing Mr. Reimann.

Mr. Reimann told Mr. Prohaska, "It’s included in bullet 4, ‘Additional
financial vehicles to the extent necessary.’ Crystal clear."

The E-mail indicated that AES’ initial proposal was a 25-year "PILOT" with
payments starting at US$14 million yearly, with a US$19-million raise
around the sixth year, when the new plant would start operating.  If no
new plant was constructed, the "PILOT" payments would increase 1% yearly
after the sixth year, Mr. Prohaska says.

The IDA granted AES a "PILOT" for 12 years, with payments starting at
US$17.3 million and decreasing to US$15.8 million by the fourth year,
where payment would stay the same until the deal expires.  AES will then
pay the county, the Town of Somerset and the Barker Central School
District a total of US$192.6 million during the 12 years -- some US$43.4
million less than it would pay if it continued to be taxed at this year’s
rates, Mr. Prohaska states.

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

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

                        *     *     *

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




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


* ECUADOR: Government Withdraws 220-Mining concessions
------------------------------------------------------
The Ecuadorian Deputy Mining Minister Jorge Jurado told Business News
Americas that the government has withdrawn 220 mining concessions in Loja,
Azuay, Chimborazo, Guayas and El Oro.

Mr. Jurado commented to BNamericas, "There were 220 concessions that
simply hadn't paid their mining licenses."

Mr. Jurado denied to BNamericas that that withdrawal of the concession was
sparked by community protests in recent days.  He said, "It's just that we
cannot put up with non-compliance."

BNamericas notes that since the start of this month, communities in Azuay,
Zamora, Morona Santiago and Imbabura have protested under an anti-mining
movement.  Inhabitants of mining regions blocked highways that connect
several provinces.

Mr. Jurado explained to BNamericas that the ministry started implementing
ministerial regulations that ask all concessions valid since 1998 to meet
with communities.

According to BNamericas, miners holding concessions will have to organize
two gatherings to share information and speak with communities and
register the names of participants and the results of the meetings.

Mr. Jurado told BNamericas, "Companies have 180 days to do that and if the
discussion is not carried out in that time, all of the concessions will be
declared null and void."

The initiative is part of a mining law reform the Ecuadorean government
discussed with communities.  The law reform will be submitted to President
Rafael Correa this week so it can be sent to the national congress,
BNamericas states, citing Mr. Jurado.

                        *     *     *

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

In addition, these ratings were downgraded:

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

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

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

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




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


ASHMORE ENERGY: Buys Stake in Distribuidora de Electricidad
-----------------------------------------------------------
Ashmore Energy International has purchased a controlling stake in the
Distribuidora de Electricidad del Sur electric utility in El Salvador,
LatinLawyer Online reports.

According to LatinLawyer Online, the Ashmore Energy acquires an 86% stake
in Distribuidora de Electricidad from US-based utility owner and power
producer PPL for US$180 million.

Ashmore Energy retained Rusconi, Valdez, Medina & Asociados Central Law as
its local counsel, and King & Spalding LLP as its counsel in the US,
LatinLawyer Online notes.  Arias & Munoz in El Salvador was the "counsel
to the seller," while Citibank was the "borrower and collateral agent for
the credit."

Ana Mercedes Lopez, a partner at Arias & Munoz told LatinLawyer Online
that difficulties remain.  The deal closed before the rates were
determined and presented to regulators.  She expliained, "These include
the reset of the tariff applicable to the energy supply offered by Del
Sur.  Ashmore has the challenge of negotiating the tariff, which will be
applicable for the next five years, with the Salvadoran energy regulator."

Luis Medina of Rusconi, Valdez, Medina & Asociados Central Law told
LatinLawyer Online that closing the deal in a such a short time frame was
tough.  He admitted, "The most challenging aspect was the very short time
in which the whole operation was closed, and introducing our client to the
details of the electricity market of El Salvador within that short time
frame."

Ashmore Energy International Ltd. -- http://www.ashmoreenergy.com-- owns
and operates a portfolio of
energy infrastructure assets in power generation, transmission,
and distribution of natural gas, gas liquids, and electric
power.  Ashmore Energy's portfolio, directly or indirectly,
consists of 19 companies in 14 countries, most of which are
located in Latin America.  The company's largest asset is
Brazilian electric distribution company, Elektro, which
represents approximately 43% of EBITDA, and 55.3% of fiscal 2006
consolidated cash flow to parent company Ashmore Energy.  The
company also operates a power plant in the Dominican Republic.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
April 3, 2007, Standard & Poor's Ratings Services assigned its
'B+' secured debt rating and '3' recovery rating to Ashmore
Energy International's US$105 million synthetic revolving credit
facility due in 2012.  At the same time, Standard & Poor's
affirmed its 'B+' corporate credit rating on Ashmore Energy; its
'B+' senior secured debt rating and '3' recovery rating on its
US$395 million revolving credit facility due 2012, which was
reduced from US$500 million; and its 'B+' senior secured debt
rating and '3' recovery rating on Ashmore Energy's US$1 billion
term loan due in 2014.  AEI Finance Holding LLC is a co-borrower
to Ashmore Energy's bank facility.  S&P said the outlook is
stable.

As reported in the Troubled Company Reporter-Latin America on
Feb. 27, 2007, Fitch Ratings assigned a BB Issuer Default rating
to Ashmore Energy International Ltd. and rated its US$500
million senior revolver credit facility at BB.

Also, Moody's Investors Service assigned a Ba3 rating to the
senior secured credit facilities.




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


* GUATEMALA: Railroad Dev’t Files US$65MM Claim Against Gov't
-------------------------------------------------------------
Railway management and investment firm Railroad Development Corporation
told Business News Americas that it has filed a US$65-million claim
against the Guatemalan government before the International Center for the
Settlement of Investment Disputes.

BNamericas relates that RCD started a 50-year operation and maintenance
accord in 1998 for the restoration and operation of an abandoned
Guatemalan national railway, under its rail unit Ferrovias Guatemala.
However, the government declared the privatization against the interest of
the state in August 2006.  The business was allegedly negatively affected
due to:

          -- inability to obtain credit,

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

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

According to BNamericas, RDC is filing these claims under the Central
American-US free trade pact:

          -- wrongful indirect expropriation;

          -- failure to accord a minimum standard of treatment;
             and

          -- failure to provide national treatment or treatment
             equal to that afforded local investors."

Guatemalan attorney general Mario Gordillo told BNamericas that the
government never determined that the contract was actually "lesivo."  Such
a claim wasn’t officially determined in a national court.  Such an
"indirect expropriation" didn’t take place.

"From my point of view, we are not dealing with indirect expropriation,
because the contract is still valid," Mr. Gordillo commented to
BNamericas.

                       *     *     *

Fitch Ratings assigned these ratings on Guatemala:

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

Fitch also rated Guatemala's senior unsecured bonds:

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




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


AIR JAMAICA: Deal with Jamaica Netball Unaffected by Route Sale
---------------------------------------------------------------
Air Jamaica's agreement with the Jamaica Netball Association won't be
affected by the sale of the airline's London route to Virgin Atlantic, the
Jamaica Observer reports, citing Jamaican Finance Minister Dr. Omar
Davies.

According to The Observer, JNA recently signed a US$9-million two-year
deal with Air Jamaica.  The airline agreed to fly the national team
members and administration to the closest port of call for any tour until
March 2009.  There had been concern that the London route sale would
adversely affect the agreement.

Air Jamaica also has the same accord with the Jamaica Football Federation,
the report says.

Minster Davies told The Observer that Air Jamaica's contracts with JNA and
JFF wouldn't be affected and local football and netball teams would still
get flights to London at reduced rates.

JNA was relieved as there are plans in the works for Jamaicans to play
reciprocal series against Commonwealth Games bronze medalists England in
the coming years, The Observer notes, citing JNA head Marva Bernard.

"It's a significant route because the association hopes that we can play
England every year.  When they came last year we exchanged thoughts that
we could play more often and the sponsorship from Air Jamaica suited this
aspiration very well.  I'm going to speak to England now to see how we can
plan ahead for some inter-change between the squads," Ms. Bernard
commented to The Observer.

Headquartered in Kingston, Jamaica, Air Jamaica --
http://www.airjamaica.com/-- was founded in 1969.  It flies
passengers and cargo to almost 30 destinations in the Caribbean, Europe,
and North America.  Air Jamaica offers vacation packages through Air
Jamaica Vacations.  The company closed its intra-island services unit, Air
Jamaica Express, in October 2005.  The Jamaican government assumed full
ownership of the airline after an investor group turned over its 75% stake
in late 2004.  The government had owned 25% of the company after it went
private in 1994.  The Jamaican government does not plan to own Air Jamaica
permanently.

                        *     *     *

On July 21, 2006, Standard & Poor's Rating Services assigned B
long-term foreign issuer credit rating on Air Jamaica Ltd.,
which is equal to the long-term foreign currency sovereign
credit rating on Jamaica, is based on the government's
unconditional guarantee of both principal and interest payments.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on June 12,
2007, Moody's Investors Service assigned a rating of B1 to Air Jamaica
Limited's guaranteed senior unsecured notes.




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


AMERICAN GREETINGS: Moody's Holds Ba1 Rating on Low Growth Rates
----------------------------------------------------------------
Moody's Investors Service affirmed American Greetings Corporation's Ba1
corporate family rating, but revised its ratings outlook to stable from
negative.

Moody's also affirmed the ratings on the company's senior secured credit
facilities and senior unsecured notes.  The ratings outlook revision
reflects the company's stronger than expected cash flows, despite
significant investments to support its strategic card initiative and
additional scan-based trading rollouts.

As a result, the company's credit metrics exceeded the amounts Moody's had
stipulated in May 2006 as conditions for revising the outlook to stable
(debt to EBITDA below 3.0 times and free
cash flow to debt above 10%).  The outlook revision also reflects the
recent reduction in the delay draw term loan commitment to US$100 from
US$300 million, which Moody's views as more conservative financial policy
given the facility was put in place, in part, to support share
repurchases.

While no ratings changed as a result of the reduction in the delay draw
term loan commitment, the LGD point estimate on the senior secured credit
facilities was revised to LGD 2, 21% from LGD 2, 28% reflecting the
increased proportion of subordinated debt in the capital structure.
Moody's also revised the point estimate on the senior unsecured notes to
LGD5, 75% from LGD5, 81%.

Ratings Affirmed:

   -- Corporate family rating at Ba1;

   -- Probability-of-default rating at Ba1;

   -- US$350 million guaranteed senior secured revolving credit
      facility due 2011 at Baa3 (LGD2, 21%);

   -- US$100 million guaranteed senior secured delay draw term
      loan facility due 2013 at Baa3 (LGD2, 21%);

   -- US$200 million senior unsecured notes due 2016 at Ba2
      (LGD5, 75%);

   -- US$22.7 million senior unsecured notes due 2028 at Ba2
      (LGD5, 75%).

American Greetings' Ba1 corporate family rating is primarily driven by the
significant business risks inherent in the greeting card industry that is
characterized by low or declining growth rates, weak consumer branding,
strong competition, and increased retailer bargaining power that is driven
by consolidation.

In Moody's view, the company's current investment grade-like credit
metrics are not sufficient to offset these business risks.  The rating
also considers the company's financial policy (given its appetite for
material share repurchases) which we continue to view as aggressive.
Notwithstanding these concerns, the rating is supported by the company's
leading and stable market position in the U.S. greeting card industry with
approximately 30% to 35% market share (and a stronger position with mass
merchandisers), its over 100-year operating history, the predictable
demand for its products, and long-standing relationships with retail
customers.  Additionally, the company's long-term contracts and scan-based
trading systems provide a meaningful barrier to entry.

The stable outlook reflects Moody's expectation that American Greetings
will maintain its solid debt protection measures, and begin to realize
measurable benefits from its strategic card initiative.  It also
anticipates that the company will mostly fund future share repurchases
with internally generated cash flows while only experiencing moderate
declines in revenues, such that debt to EBITDA remains below 3.0 times,
EBITA
interest coverage exceeds 3.5 times, and free cash flow to debt is
sustained in the mid-teen levels.

Cleveland, Ohio-based American Greetings Corporation (NYSE: AM) --
http://corporate.americangreetings.com/-- manufactures social expression
products.  American Greetings also manufactures and sells greeting cards,
gift wrap, party goods, candles, balloons, stationery and giftware
throughout the world, primarily in Canada, the United Kingdom, Mexico,
Australia, New Zealand and South Africa.


GENERAL MOTORS: Carlyle & Blackstone Are In for Final Bid
---------------------------------------------------------
General Motors Corp. received final bids from two parties for its Allison
Transmission business last week, including the Carlyle Group, The
Financial Times reports citing sources familiar with the process.

A spokesperson for GM denied the claim stating that there is
more than one bidder left, FT says.

Blackstone was competing with Carlyle in the final bidding
round, a source close to the United Auto Workers was cited by
FT as saying.

The UAW has not yet approved any deal to sell Allison, a
source close to the union further told FT.

According to FT, a spokesperson for Blackstone declined
to comment while UAW officials could not be reached for
comment.

Last month, GM disclosed in a regulatory filing with the
Securities and Exchange Commission that it is considering
measures to strengthen liquidity and focus on its core
business of designing, manufacturing, and selling cars and
light trucks globally.

Among other items, GM said it is currently discussing the
potential sale of its Allison Transmission business with a
number of potential buyers.

GM management believes that a sale of Allison Transmission
is probable, subject to union, regulatory, and other
approvals.

GM provided unaudited pro forma financial information
reflecting Allison Transmission's assets and liabilities
as held for sale as of March 31, 2007, and reporting its \
operations as discontinued for the three months ended
March 31, 2007 and 2006, and for the years ended
Dec. 31, 2006, 2005, and 2004.

A full-text copy of the pro forma financial information is
available for free at http://researcharchives.com/t/s?2038

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

General Motors has Asia-Pacific operations in India, China,
Indonesia, Japan, the Philippines, among others.  It has
locations in European countries including Belgium, Austria, and
France.  In Latin-America, the company maintains locations in
Argentina, Brazil, Chile, Colombia, Ecuador, Venezuela, Paraguay
and Uruguay.

                          *     *     *

As reported in the Troubled Company Reporter on May 28, 2007,
Standard & Poor's Ratings Services placed General Motors Corp.'s
corporate credit rating at B/Negative/B-3.

At the same time, Moody's Investors Service affirmed GM's B3
Corporate Family Rating and B3 Probability of Default Rating, and
maintained its SGL-3 Speculative Grade Liquidity Rating.  Moody's hold the
rating outlook at negative.

As reported in the Troubled Company Reporter on May 25, 2007,
Fitch Ratings downgraded General Motors Corporation's ratings
including the company's 'B/RR4' rated senior unsecured debt to
'B-/RR5'.  GM's Issuer Default Rating remains at 'B' and is still on
Fitch's Negative Rating Watch.


GENERAL MOTORS: Joins Ford & Chrysler to Cut Labor Costs
--------------------------------------------------------
General Motors Corp., Ford Motor Co. and DaimlerChrysler AG's
Chrysler Group are seeking unprecedented concessions from the
United Auto Workers union in a bid to narrow what they say is
a US$30-an-hour labor-cost disadvantage against Asian rivals like Toyota
Motor Corp. and Honda Motor Co., The Wall Street Journal reports citing
the automakers’ executives as saying.

People familiar with the companies’ plans told WSJ that all three are
united in believing they have no choice but to close the US$10
billion-a-year labor-cost gap between them and their Asian competitors on
cars and trucks built in the U.S.

According to the report, GM, Ford and Chrysler say they pay union workers
US$70 to US$75 an hour compared to Toyota and other Asian auto makers’
US$40 to US$45 an hour at their U.S. plants.

"We need to eliminate most, if not all...like 80%" of the gap,
a senior automotive executive involved in labor planning said
in the report.  "It has to be gone by the end of the contract, or doing
business in the United States is unsustainable."

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

General Motors has Asia-Pacific operations in India, China,
Indonesia, Japan, the Philippines, among others.  It has
locations in European countries including Belgium, Austria, and
France.  In Latin-America, the company maintains locations in
Argentina, Brazil, Chile, Colombia, Ecuador, Venezuela, Paraguay
and Uruguay.

                          *     *     *

As reported in the Troubled Company Reporter on May 28, 2007,
Standard & Poor's Ratings Services placed General Motors Corp.'s
corporate credit rating at B/Negative/B-3.

At the same time, Moody's Investors Service affirmed GM's B3
Corporate Family Rating and B3 Probability of Default Rating, and
maintained its SGL-3 Speculative Grade Liquidity Rating.  Moody's holds
the rating outlook at negative.

As reported in the Troubled Company Reporter on May 25, 2007,
Fitch Ratings downgraded General Motors Corporation's ratings
including the company's 'B/RR4' rated senior unsecured debt to
'B-/RR5'.  GM's Issuer Default Rating remains at 'B' and is still on
Fitch's Negative Rating Watch.




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


CHIQUITA BRANDS: Europe Sales Volume Down 4% in April-May 2007
--------------------------------------------------------------
Chiquita Brands International Inc. provided an intraquarter update for the
second quarter 2007, including Chiquita banana
and Fresh Express value-added salad prices and volumes for April-May 2007
in its Banana and Salads and Healthy Snacks segments, respectively.

Banana Segment

                   Year-over-Year Percentage Change (1)
                    April-May 2007 vs. April-May 2006

                                                 % of Total

CHIQUITA BANANAS       Pricing     Volume (2)    Volume Sold

Core European Markets (3)

U.S. dollar basis (4)   +7 %          -4 %           37 %
Local currency basis    -1 %

North America             0 %          +8 %           43 %

Asia Pacific and the
Middle East (5)         +5 %         -17 %           12 %

Trading Markets         -11 %        +293 %            8 %

  (1) These statistics may not be indicative of future
      results.

  (2) Total volume sold includes all banana varieties, such
      as Chiquita to Go, Chiquita minis, organic bananas
      and plantains.

(3)The company's "core" European markets include the
member states of the European Union (except new
entrants Romania and Bulgaria, which continue to
      be reported in "trading" markets), Switzerland,
      Norway and Iceland.

  (4) Prices on a U.S. dollar basis do not include the impact
      of hedging.

  (5) In this region, the company primarily operates
      through joint ventures, and most business is invoiced
      in U.S. dollars.

Banana prices in the company's core European markets were down 1 percent
year-on-year on a local currency basis (up 7 percent on a U.S. Dollar
basis), reflecting the continued impact of E.U. regulatory changes
implemented on Jan. 1, 2006, which have resulted in an increase in
industry volume and price competition.  Volume sold in the core European
markets decreased by 4 percent, due to the company's strategic
determination to focus on profitable volume and maintaining its premium
position in these markets.

North American banana pricing was flat year-over-year.  While base
contract prices increased, this improvement was partially offset by lower
spot-market pricing and lower year-on-year surcharges linked to a
third-party fuel price index.  Banana volume sold in the region rose 8
percent, reflecting distribution gains at several top-25 customers as well
as the company's recovery from weather-related disruptions in the previous
year.

In Asia Pacific and the Middle East, pricing rose 5 percent year-on-year
on a U.S. dollar basis, primarily as a result of significant improvement
in local pricing in Japan, partially offset by unfavorable dollar-yen
exchange rates.  Volume in this region fell by 17 percent year-over-year,
primarily related to supply constraints in the Philippines, which resulted
in lower
yields of premium-quality fruit.

In the company's trading markets, which consist primarily of European and
Mediterranean countries that do not belong to the European Union,
decreased pricing of 11 percent year-over-year reflects the transition in
Turkey to a year-round service commitment in 2007, rather than
opportunistic entry in the
spot market.   In addition, volume growth in this region was also driven
by the company's year-round presence in Turkey.

Salads and Healthy Snacks Segment

              Year-over-Year Percentage Change (1)
               April-May 2007 vs. April-May 2006

FRESH EXPRESS RETAIL
VALUE-ADDED SALADS         Net Revenue Per Case   Volume

   North America                 0 %                +1 %

  (1) These statistics may not be indicative of future
      results.

In the Salads and Healthy Snacks segment, total volume of retail
value-added salads was up 1 percent year-over-year in the two-month
period.  Since mid-September 2006, the company's Fresh Express operations
have been impacted by consumer concerns regarding the safety of fresh
spinach and other packaged leafy greens in the United States, despite the
fact that no confirmed cases of consumer illness were linked by the U.S.
Food and Drug Administration to Fresh Express products.  As noted
previously, the company expects reduced sales and decreased margins to
continue through at least the third quarter 2007 due to consumer concerns
about the safety of packaged salad products.  Net revenue per case was
flat year-over-year.

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


DIRECTV: Inks Wireless Internet Deal with Clearwire
---------------------------------------------------
DirecTV Group Inc. and EchoStar Communications Corp. have signed
distribution deals with Clearwire Corp. for its wireless, high-speed
Internet service, published reports say.

Under the agreement, DirecTV and EchoStar will be able to offer
Clearwire's high-speed Internet access service to their customers.  In
return, Clearwire will be able to provide satellite video services from
either of the providers to its customers, Newrating.com says.

                    About Clearwire

Kirkland, Washington-based Clearwire (NASDAQ: CLWR) offers wireless,
high-speed Internet access in nearly three dozen markets in the United
States, primarily along the West Coast and in Texas, Florida, North
Carolina, and the Midwest.

                     About DirecTV

Headquartered in El Segundo, California, The DIRECTV Group
(NYSE:DTV) -- http://www.directv.com/--, Inc. provides digital
television entertainment in the United States and Latin America.
It has two segments, DIRECTV U.S. and DIRECTV Latin America.
The DIRECTV U.S. segment provides direct-to-home digital
television services in the multichannel video programming
distribution industry in the United States.  The DIRECTV Latin
America segment provides digital direct-to-home digital
television services to approximately 1.6 million subscribers in
27 countries, including Brazil, Argentina, Venezuela, and Puerto
Rico.

                       *     *     *

As reported in the Troubled Company Reporter-Latin America on
April 5, 2007, Standard & Poor's Ratings Services affirmed the
'BB' corporate credit and 'BB-' senior unsecured debt rating on
The DIRECTV Group Inc.  S&P said the outlook is stable.


DORAL FINANCIAL: Loses US$37.3 Million in First Quarter 2007
------------------------------------------------------------
Doral Financial Corporation has filed its Form 10-Q report for the first
quarter ended March 31, 2007.  For the first quarter 2007, Doral Financial
had a net loss of US$37.3 million and a consolidated loss per diluted
common share of US$0.42.  For the first quarter 2006, Doral Financial had
net income of US$17.1 million and consolidated earnings per diluted common
share of US$0.08.

Doral Financial’s banking subsidiaries continue to be well capitalized for
bank regulatory purposes as of March 31, 2007, while, as of such date, the
holding company was considered adequately capitalized for bank regulatory
purposes.

"The costs related to correcting legacy issues in addition to compressing
margins due to interest rate risk are reflected in the first quarter
results.  We are focused on both improving our operations and succeeding
with respect to our immediate objective, which is the recapitalization of
our holding company, Doral Financial," said Doral Financial Chief
Executive Officer and President Glen R. Wakeman.

Doral Financial’s financial performance for the first quarter 2007,
compared to the first quarter of 2006, was principally impacted by:

          (1) an income tax expense of US$5.9 million, compared
              to a tax benefit of US$39.1 million for the first
              quarter of 2006;

          (2) lower net interest income as a result of a
              decrease in net interest margin, coupled with a
              decrease in the average balance of interest-
              earning assets; and

          (3) increased non-interest expense related principally
              to charges in respect of the company’s key
              employee incentive plan and professional fees
              related to the company’s business transformation
              and recapitalization efforts, as well as continued
              efforts in the resolution of legacy issues.  The
              reduction in earnings as a result of these factors
              was partially offset by higher non-interest
              income.

Net loss for the first quarter 2007 was US$37.3 million, or a diluted loss
per share of US$0.42, compared to net income of
US$ 17.1 million, or a diluted earnings per share of US$0.08 for the first
quarter 2006.

Net interest income for the first quarter 2007 was US$38.2 million,
compared to US$58.6 million for the same period in 2006.  The decrease in
net interest income for 2007, compared to 2006, was related to a decrease
in the company’s net interest margin, coupled with a decrease in the
average balance of interest earning assets.  Net interest margin decreased
from 1.46% in the first quarter 2006 to 1.43% in the first quarter 2007.
Average interest-earning assets decreased from US$16.2 billion during the
first quarter of 2006 to US$10.8 billion for the first quarter 2007.

For the first quarter 2007, the provision for loan and lease losses was
US$6.0 million, compared to US$5.2 million for the first quarter of 2006.
The increase in provision reflects principally an increase in specific
reserves related to the allowance for the company’s commercial loan
portfolio, as well as deterioration in delinquency trends, particularly in
the construction and commercial portfolios, and declining economic
conditions in Puerto Rico.

Non-interest income for the first quarter 2007 was US$11.6 million,
compared to a non-interest loss of US$9.7 million for the same period in
2006.  The increase in non-interest income during the first quarter 2007
compared to the same period in 2006 was primarily driven by a reduced loss
on mortgage loan sales and fees, which amounted to approximately US$0.5
million during the first quarter 2007, compared to losses of approximately
US$14.7 million for the first quarter of 2006.  The improvement in
non-interest income also reflects lower losses on trading activities.
Total loan sales and securitizations for the first quarter 2007 were
US$69.0 million, compared to US$231.6 million for the first quarter 2006.

Non-interest expense for the first quarter 2007 was US$75.2, compared to
US$65.8 million for the same period in 2006.  The increase in non-interest
expense for the quarter was driven by a US$3.5 million increase in
professional fees, principally associated with the company’s business
transformation and recapitalization efforts, as well as continued efforts
in the resolution of legacy issues.  Non-interest expense for the first
quarter 2007 also includes approximately US$6.4 million in payments and
associated benefit costs related to the company’s key employee incentive
plan and a US$2.6 million charge in connection with the settlement of a
claim with a local financial institution as part of a sale of mortgage
servicing rights to such institution.

For the first quarter 2007, Doral Financial recognized an income tax
expense of US$5.9 million, compared to an income tax benefit of US$39.1
million for the corresponding period in 2006.  The income tax expense
recorded during the first quarter of 2007 was mainly related to an
increase in the valuation allowance over the deferred tax asset.

During the first quarter 2007, the company had other comprehensive income
of approximately US$9.8 million related principally to the positive impact
of the decrease in long-term interest rates on the value of the company’s
portfolio of available for sale securities.  As of March 31, 2007, the
company’s accumulated other comprehensive loss (net of income tax benefit)
totaled US$97.2 million, compared to US$106.9 million as of Dec. 31, 2006.

Doral Financial’s loan production for the first quarter 2007 was US$268.3
million, compared to US$875.7 million for the comparable period in 2006, a
decrease of approximately 69%.  The decrease in Doral Financial’s loan
production is due to a number of factors, including changes in the
underwriting standards, economic conditions in Puerto Rico, and
competition from other financial institutions.  The company anticipates
that, for the foreseeable future, loan production will continue below
historical levels as these new underwriting standards are implemented and
new product offerings are developed.

Total assets as of March 31, 2007, were US$11.5 billion, a decrease of 3%
compared to US$11.9 billion as of Dec. 31, 2006. The decrease in total
assets was principally the result of the previously reported sale of
US$1.7 billion in investment securities during the fourth quarter 2006, of
which US$231 million settled during the first quarter 2007.

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

                        *     *     *

As reported in the Troubled Company Reporter on May 21, 2007,
Fitch Ratings has lowered Doral Financial Corporation's ratings
as:

  Doral Financial Corporation

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

  Doral Bank

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

Fitch said the ratings remain on Rating Watch Negative.

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




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


* URUGUAY: Gov't Inks Pluna Sale Agreement with Investors
---------------------------------------------------------
The Uruguayan government said in a statement that it has signed an accord
to sell control of the nation's flagship airline Pluna to a group of
private equity investors headed by Leadgate Investment Corp.

According to the statement, the investors will take over the operations of
Pluna on July 1.  They will now deliver a complete business plan for Pluna
to the economy and transport ministries.  The deal will then be delivered
to Uruguay's parliament.

Local press reported that the government has invested around US$12 million
to US$16 million in Pluna's existing operations to bring the company's
shareholder equity into the black.  The agreement with the investors
required the government to hand over the firm with US$1 million in
shareholder equity.

Dow Jones Newswires relates that the investors were led by Argentine
entrepreneur Matias Campiani.  They will take a combined 75% stake in
Pluna, while the remaining 25% will be kept by the government.

Dow Jones notes that the investors will turn Pluna into a hub airline for
South America.  They will invest some US$177 million, including US$10
million in equity and US$15 million through a loan from the investor
group.  The remainder would come from financing for the purchase of Pluna.
The sale was already discussed with financial institutions.

The investors told Dow Jones that through a combination of purchase and
leasing, they will bring in:

          -- 15 regional aircraft,
          -- four long-haul aircraft, and
          -- a cargo plane.

                       *     *     *

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 was '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: Chrysler Puts US$450MM in Kenosha Engine Plant
---------------------------------------------------------------
DaimlerChrysler AG unit Chrysler Group plans to invest US$450 million in
its Kenosha, Wisconsin, engine plant for a comprehensive retooling in
preparation for the launch of a new family of fuel-efficient V-6 engines.

The investment and retooling are part of an extensive powertrain
offensive that will commit a total of US$3 billion to develop and launch
the new engines -— known as Phoenix engines —- in addition to a
dual-clutch transmission joint venture with German parts maker Getrag and
new common axle family.  All are part of Chrysler Group's commitment to
advanced powertrain technologies and the first step to more fuel-efficient
vehicles.

Scheduled to begin production in January 2011, the plant will have an
annual Phoenix production capacity of 400,000 units when it reaches full
volume.  Retooling for the Kenosha Phoenix Engine Plant will begin in June
2010.  Once the plant is fully operational, Kenosha Phoenix Engine Plant
will employ 700 full-time workers.

"This retooling investment will allow us to build an entirely new,
globally competitive family of V-6 engines," said Richard Chow-Wah, vice
president for Powertrain Manufacturing, Chrysler Group.  "The Chrysler
Group Recovery and Transformation Plan is focused on new products, and
today's news supports a long-term commitment to new vehicle components
that support consumer demand for refined, economical-to-operate vehicles
for many years to come."

Wisconsin Governor Jim Doyle said that Chrysler Group would receive an
incentive package of Kenosha County, City of Kenosha and State of
Wisconsin funds totaling US$16.8 million.

"This is an important day for the future of the UAW and Chrysler Group,
and in particular for the continued competitiveness of our team here in
the State of Wisconsin," said General Holiefield, UAW vice president, who
directs the union's DaimlerChrysler Department.  "We have a vision to see
this company and our union grow this business and transform Chrysler Group
into a stronger company that will be competitive for the long run.  The
investment we announce today proves that we are investing in this vision.”

Chrysler Group has had a presence in Kenosha since 1987, when American
Motors Corp. was acquired by Chrysler Corporation.  The company's current
2.7-liter V-6 has been produced there since 1997.  The company's 3.5-liter
V-6 was launched in 1999, part of a US$624 million modernization of the
plant.  The plant was built in 1917.

Over the long term, the Phoenix family of V-6 engines will reduce
manufacturing complexity by paring the Company’s four current V-6 engine
architectures to one.

Kenosha becomes the third Phoenix engine plant announced by Chrysler Group
since April 2007, joining previously announced plants in Trenton,
Michigan, and Saltillo, Mexico.  The company will also construct an
all-new plant in Marysville, Michigan, to build a new line of corporate
axles.

                    About DaimlerChrysler

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

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

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

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

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


PETROLEOS DE VENEZUELA: Gov't Okays Energy Pact with Paraguay
-------------------------------------------------------------
Venezuelan state-run oil firm Petroleos de Venezuela SA said in a
statement that the government's national assembly has authorized the
implementation of an energy cooperation accord with Paraguay.

Business News Americas relates that Venezuelan President Hugo Chavez
signed the agreement with Paraguayan counterpart Nicanor Duarte during the
South American energy summit in April 2007 .

According to Petroleos de Venezuela's statement, the "cornerstone" of the
pact is the expansion of Paraguay's state-owned oil company Petropar's
Villa Elisa plant.  The project would retool the refinery to process
Venezuelan oil and boost the refinery's capacity to up to 12,000 barrels
per day from 7,000 barrels per day.

BNamericas says that the US$600-million project was aimed at processing
refined products like naphtha and diesel at an output level of 35,000
barrels per day.

The report says that expanded capacity would let Paraguay achieve
self-sufficiency in refined products and create a surplus for exports in
the region.

The project's technical and financial feasibility and viability studies
could conclude by year-end.  Project funding will be addressed this year
so works can start in 2008, BNamericas states.

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

As reported on March 28, 2007, Standard & Poor's Ratings Services assigned
its 'BB-' senior unsecured long-term credit rating to Petroleos de
Venezuela S.A.'s US$2 billion notes due 2017, US$2 billion notes due 2027,
and US$1 billion notes due 2037.


PETROLEO BRASILEIRO: Pipeline Project with Nanotech Expands
-----------------------------------------------------------
Brazilian state-run oil firm Petroleo Brasileiro SA’s pipeline project
with nanotechnology company Industrial Nanotech, Inc., has been expanded
by over 50%.  The construction timeline has also been revised.  The
changes will push the project start date to early in the fourth quarter
2007 and will increase the projected value for Industrial Nanotech to over
US$5.8 million from US$3.7 million.

Industrial Nanotech Chief Executive Officer Stuart Burchill commented,
“Change orders are a normal course of business for any construction
project and change orders change timelines.  The length of the pipeline
has increased from 105 miles to 155 miles and 31 miles of the new section
is a much larger pipe diameter, increasing the total surface area to be
coated with our patented Nansulate thermally insulating and corrosion
protection coating by 57%.  This project involves a pipeline running
through one of the largest cities in the world.  We are excited to be part
of the process and are ready and able to fulfill the updated requirements
for the increased coverage area.”

“The new numbers were provided to Industrial Nanotech very recently via
conference call with our team and Petrobras’ [Petroleo Brasileiro]
pipeline engineer in charge of the project,” Mr. Burchill contiued.  “Over
the next 30–60 days, I will be meeting at Petrobras headquarters again in
Rio de Janeiro with our technical team in Brazil and Petrobras’ pipeline
engineers to review the new specifications with them and subsequently
their pipeline engineer will be visiting our facilities at Princeton
Polymer Laboratories, Inc. for a seminar on the coating application
specifications and instructions and to study additional technologies we
have developed for them for other projects we are discussing.  As an
innovator and an inventor, I find Petrobras to be a smart and forward
thinking company to work with, eager for new technologies.  This is the
beginning of a long and mutually beneficial relationship of significant
value to Industrial Nanotech, Inc.”

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.


* VENEZUELA: Bonds Surge on Report That Gov't To Buy-Back Debts
---------------------------------------------------------------
Venezuela's bonds gained after a local paper reported that the government
plans to repurchase debts that are in danger of being in default if the
nation would cut its ties with the International Monetary Fund.

Matthew Walter and Lester Pimentel, at Bloomberg News, say the
government's 9-3/8% dollar bonds due in 2034 rose 0.75 cent on the dollar
to 111 cents after Reporte cited Labor Minister Jose Ramon Rivero as
saying that the government may buy back the bonds containing the clause to
allow it to withdraw from the
IMF without defaulting.  Venezuela has US$20 billion of foreign bonds.

President Hugo Chavez said in April that the IMF restricts the country's
sovereignty and he'd like to change that.  His comment adversely affected
the country's debts on concerns that they'd be in default based on a
prospectus governing the sale of 9.375 percent bonds maturing in 2034.
The prospectus has a provision that says Venezuela ceasing to be a member
of the IMF is an
event of default.

The yield on the bonds due in 2034 fell 6 basis points, or 0.06 percentage
point, to 8.34 percent at 4:45 p.m. in New York on Thursday, according to
JPMorgan Chase & Co.

                       *     *     *

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


* VENEZUELA: Fines Diageo US$3.2MM for Anti-Competitive Practice
----------------------------------------------------------------
LatinLawyer Online reports that the Venezuelan Competition Authority has
fined Diageo US$3.2 million for anti-competitive behavior.

According to the report, it is the largest fine ever imposed on a company.

LatinLawyer Online notes that Distribuidora Glasgow and Pernod Ricard
Venezuela -- two rival companies of Diageo -- filed a complaint before the
competition authority, accusing Diageo of using "exclusionary contracts"
for the distribution and marketing of its liquors.  A probe resulted from
the filing of the complaints.

The report says that the competition authority found that the contracts
wrongfully prompted bars and restaurants to stock Diageo's Smirnoff Ice
vodka drink and its whisky brands.

Pernod Ricard was also fined US$1.31 million for breaching competition law
with its own exclusionary contracts, while Distribuidora Glasgow was
unscathed.  During the probe, Diageo had launched a counter-complaint
against Pernod Ricard, LatinLawyer Online notes.

LatinLawyer relates that the competition authority declared Diageo's
contracts null and void, ordering it to seek permission for any future
advertising events and promotions.  The authority also issued a cease and
desist order, letting smaller firms present bids for promotional accords.

Hernando Diaz-Candia of Squire Sanders & Dempsey, the legal representative
for Distribuidora Glasgow, told LatinLawyer Online that Diageo received
the larger fine as it is the dominant market player.

The legal counsel for Distribuidora Glasgow can be reached at:

          Hernando Diaz-Candia
          Squire Sanders & Dempsey
          Centro Seguros Sudamerica, Piso 10
          Oficina 10-A, Avenida Francisco de Miranda
          El Rosal, Caracas 1060
          Venezuela
          Phone: +58.212.953.4006
          Fax: +58.212.953.4846

                        *     *     *

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


                      ***************


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

Troubled Company Reporter - Latin America is a daily newsletter
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