TCRLA_Public/070625.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 25, 2007, Vol. 8, Issue 124

                          Headlines

A N T I G U A   &   B A R B U D A

MITEL NETWORKS: S&P Puts CCC+ Rating on US$185MM 2nd Lien Debt
YOKOGAWA ELECTRIC: Gets JPY100-Bil. Order from Chevron Corp.

A R G E N T I N A

ALITALIA SPA: MatlinPatterson Rejoins Stake Race Sans Partners
IMPERIAL CHEMICAL: Snubs Akzo Nobel's GBP7 Billion Takeover Bid
NIPPON SHEET: Posts JPY17.52B Net Income for FY Ended March 31
BOSTON SCIENTIFIC: Buys Prostate Treatment Tech from Celsion
COMUNICACION DE ALTO: Claims Verification Deadline Is Aug. 22

ENKAY SA: Proofs of Claim Verification Ends on Sept. 3
INTERCOM SRL: Proofs of Claim Verification Deadline Is Aug. 9
PROLIMEC SRL: Proofs of Claim Verification Ends on Sept. 4
KINEDYNE SOUTH: Proofs of Claim Verification Is Until Aug. 8
SAFEGUARD SRL: Trustee Verifies Proofs of Claim Until Aug. 9

TELECOM ARGENTINA: Sells Publicom to Yell Publicidad for US$61MM

* ARGENTINA: Holding Off Bank of the South Launching

B E L I Z E

* BELIZE: Seeks Water Supply Funding from Caribbean Dev't Bank

B E R M U D A

ACCOUNTANTS PROFESSIONAL: Final General Meeting Is on July 3
FIRST SHIP: Sets Final General Meeting for July 2
FOSTER WHEELER: Board Selects Lisa Wood as VP & Controller
GLOBAL CROSSING: Serves as Networx Subcontractor to AT&T Gov't
WEST SOLUTIONS: Final General Meeting Is Set for July 3

B O L I V I A

* BOLIVIA: Holding Off Bank of the South Launching
* BOLIVIA: Peruvian Congress Mulling Mining Pact with Nation

B R A Z I L

BANCO NACIONAL: Twelve-Month Disbursements Reached BRL57.7 Bil.
BANCO NACIONAL: Grants US$94-Mil. Loan for 11 Ships Construction
BANCO NACIONAL: Okays US$94-Million Loan for Saveiros Camuyrano
HEXCEL CORP: Selling Remaining Assets to JPS for US$75 Million
LUPATECH SA: S&P Puts BB- Rating on Proposed US$200-Mil. Notes

LUPATECH SA: Moody's Assigns Ba3 Rating on US$200-Million Notes
NOVELIS INC: S&P Places BB Rating on US$860-Million Loan
ORECK CORP: Weak Liquidity Position Cues S&P to Junk Rating
DAIMLERCHRYSLER: Chrysler Group & GETRAG Invests US$530 Million
DAIMLERCHRYSLER: Chrysler Group Eyes Sales & Dealer Expansion

DUERR AG: Moody's Lifts B2 Corp. Credit Rating Outlook to Stable
REMY INT: Planned Chapter 11 Filing Cues S&P's Rating Downgrade
TOWER AUTO: Cancels Auction Due to Absence of Competing Bids
UNITED AIRLINES: Hiring New Pilots to Meet Rise in Int'l Routes
PETROLEO BRASILEIRO: Investing US$10B To Revitalize Fields

WARNER MUSIC: To Develop Mobile Themes on QUALCOMM's uiOne(TM)
ZIM CORPORATION: Raymond Chabot Raises Going Concern Doubt

C A Y M A N   I S L A N D S

ALTAIR NAVIGATOR: Sets Final Shareholders Meeting for June 29
AUSTRAL CAPITAL: Proofs of Claim Filing Is Until July 11
AUSTRAL CAPITAL: Sets Final Shareholders Meeting for July 11
PT BANK INTERNASIONAL: Cuts 2006 Dividend to IDR5.24 Per Share
BANK OF AYUDHYA: Unit Implements Charles River Management System

CITRINE SPECIAL: Sets Final Shareholders Meeting for June 29
COMMODITY RESOURCES: Final Shareholders Meeting Is on July 12
COOPERNEFF (CAYMAN): Final Shareholders Meeting Is on June 29
JORDAIR CO: Proofs of Claim Filing Deadline Is July 12
JOSE CARTELLONE: Final Shareholders Meeting Is on June 29

KAZIMIR NON-DOLLAR: Sets Final Shareholders Meeting for June 29
KICAP NETWORK: Final Shareholders Meeting Is on July 12
MICROPORT MEDICAL: Proofs of Claim Must be Filed by July 12
MINCS-GLACE: Proofs of Claim Filing Is Until July 12
MW STRAND: Sets Final Shareholders Meeting for June 29

NEEDHAM EMERGING: Holding Final Shareholders Meeting on July 13
NOTES FUNDING: Proofs of Claim Must be Filed by July 12
RYMBOURNE CAYMAN: Sets Final Shareholders Meeting for July 13
SD FUNDING: Proofs of Claim Must be Filed by July 12
SHINSEI FUNDING: Proofs of Claim Filing Is Until July 12

STIR FUND: Sets Final Shareholders Meeting for June 29
THUNDER BAY: Holding Final Shareholders Meeting on June 29

C O L O M B I A

ECOPETROL: Will Launch Initial Public Offering on Aug. 27

* COLOMBIA: Fitch Upgrades Foreign Currency Rating to BB+

E C U A D O R

PETROECUADOR: Gets Favorabale Ruling in Chevron Lawsuit

* ECUADOR: Will Join OPEC, Says Abdullah Al-Badri
* ECUADOR: Holding Off Bank of the South Launching

G U A T E M A L A

BRITISH AIRWAYS: S&P Lifts Corp. Credit Rating to BBB- from BB+
BRITISH AIRWAYS: Confident on Future Growth After Rating Upgrade

J A M A I C A

DIGICEL LTD: Unit Will Deploy Sales Kiosks in Courts Jamaica

M E X I C O

AMERICAN GREETINGS: Earns US$30 Million in Quarter Ended May 25
CHEMTURA CORP: Will Kuser Quits as Investor Relations Director
CHURCH & DWIGHT: Strong Performance Cues S&P to Revise Outlook
FEDERAL-MOGUL: Court Extends Confirmation Hearing to July 9 & 10
ICONIX BRAND: Closes US$287.5-Mln Convertible Sr. Notes Offering

VISTEON CORP: Construction Starts at New Missouri Assembly Plant
VISTEON CORP: To Close Bedford Plant; 685 Jobs Slashed
SHAW GROUP: Plans New Fabrication Facility in Mexico
LIBBEY INC: Jean-Rene Gougelet Joins Board of Directors
JABIL CIRCUIT: Third Quarter Net Income Drops to US$6.2 Million

RADIOSHACK CORP: Fitch Lowers Issuer Default Rating to BB
SOCIEDAD COMERCIAL: Court Okays Ertach Sale to Telmex

P A N A M A

STARTECH ENVIRONMENTAL: Posts US$1 Mil. Net Loss in Second Qtr.

P E R U

DOE RUN: Peruvian Unit Eyes 16% Boost in Cobriza Production

* PERU: Congress Studies Mining Agreement with Bolivia

P U E R T O   R I C O

GENESCO: Paying Quarterly Dividends on Pref. Stock on July 30
PIER 1: Posts US$57. Million Net Loss in Quarter Ended June 2
STEWART ENTERPRISES: Moody's Puts Ba3 Rating on US$250MM Notes

U R U G U A Y

NAVIOS MARITIME: Hires Shunji Sasada as Chief Operating Officer

V E N E Z U E L A

AES CORP: Reports US$119 Mil. Net Income in 2007 First Quarter
CITGO PETROLEUM: Yoder Oil Stops Selling Firm's Oil
CITGO PETROLEUM: Bracewell & Guiliani No Longer Represents Firm
PETROLEOS DE VENEZUELA: Delays Production at Corocoro Oil Field
PETROLEOS DE VENEZUELA: May Oil Output at 2.37MM Barrels Daily

* VENEZUELA: Bolivia Buying Liquefied Petroleum from Nation


                         - - - - -


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


MITEL NETWORKS: S&P Puts CCC+ Rating on US$185MM 2nd Lien Debt
--------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' long-term
corporate credit rating to Ottawa-based Mitel Networks Corp.
The outlook is stable.

At the same time, Standard & Poor's assigned its bank loan and
recovery ratings to the company's proposed secured financing,
comprising US$275 million of first-lien debt (a US$30 million
revolving credit facility due 2012, and a US$245 million term
loan B due 2014) and a US$185 million second-lien term loan due
2015.  The borrower of the term loans is wholly owned
subsidiary, Mitel U.S. Holdings, Inc.  The co-borrowers of the
revolving credit facility are the parent, Mitel Networks Corp.,
and indirectly owned subsidiary, Mitel Networks Inc.  The term
loans and operating revolver are cross-guaranteed by all direct
and indirect material subsidiaries of the company.

The issued rating on the first-lien debt is 'BB-', with a
recovery rating of '1', indicating an expectation of a very high
(90%-100%) recovery of principal in the event of a payment
default.  The issue rating on the second-lien facility is
'CCC+', with a recovery rating of '6', indicating an expectation
of a negligible (0%-10%) recovery of principal in the event of
default.

Proceeds from the bank facilities will be used to partially fund
the purchase of Tempe, Arizona-based Inter-Tel Inc. Mitel and
Inter-Tel are involved in designing, manufacturing, and selling
communication equipment and related services geared to
enterprise customers, with a particular focus on telephony
products for small-to-medium business customers.

"The rating assignment on Mitel reflects its very high pro forma
debt leverage and correspondingly weak credit measures," said
Standard & Poor's credit analyst Madhav Hari.  "It also reflects
Mitel's narrow focus on the small-to-medium business segment,
strong competition from large industry players, weak historical
operating performance at both companies, and integration risks
associated with the purchase of a large company," Mr. Hari
added.  These factors are somewhat tempered by Mitel's enhanced
market presence; potential for improved margins, given the
synergies and scale benefits; a better product roadmap; enhanced
distribution; and healthy cash flow generation.

The outlook is stable.  The Inter-Tel acquisition improves the
company's business prospects given an improved market position,
profitability, and operating cash flows.  Still, competition
from large vendors and limited financial flexibility, together
with integration and execution risks, will lead to only moderate
improvements to credit metrics in the near term.  Should the
company improve its market position meaningfully, and realize
higher synergies, we could revise the outlook to positive.
Conversely, if the company's market position weakens or
profitability is challenged, S&P could revise the outlook and
ratings downward.

The company has operations in Brazil, the United Kingdom and
Indonesia.


YOKOGAWA ELECTRIC: Gets JPY100-Bil. Order from Chevron Corp.
------------------------------------------------------------
Yokogawa Electric Corporation has received an order from U.S.
Energy company Chevron Corp. for an oil refinery management
system, estimated at more than JPY100 billion, the Associated
Press reports.

The system, to be used in eight refineries of Chevron in the
U.S., Britain and South Africa, will replace the current
Honeywell system.  Yokogawa's system will boost production
efficiency and safety, Yokogawa spokesman Masatoshi Okabe
revealed to AP.

In addition, Yokogawa will deliver the system for 10 years to
Chevron's refineries, reveals Mr. Okabe.

Mr. Okabe further added that Chevron's 8 refineries process
about 1.3 million barrels of oil a day.

In an interview by AP with Mr. Okabe, he said that the amount of
the order could not be disclosed due to confidentiality with
Chevron.

However, AP, citing the Nikkei business daily, relates that
sources revealed to Nikkei that the order will exceed
JPY100 billion including maintenance costs.

Mr. Okabe neither denied nor confirmed this report.  However, he
claims that bulk order for the refinery management system will
be the largest of its kind ever delivered to a refinery
operation, relates AP.

                   About Yokogawa Electric

Yokogawa Electric Corporation -- http://www.yokogawa.co.jp-- is
a manufacturing company mainly engaged in the manufacture and
sale of measurement control equipment and information equipment.
The company manufactures measurement control equipment and
information equipment through its subsidiaries, and sells the
equipment in the country, as well as overseas markets, including
Southeast Asian countries, European countries and the United
States, through its subsidiaries.  Yokogawa Electric also offers
engineering services and post-sale services.  Along with one of
its subsidiaries, the Company also manufactures security-related
equipment.  Its other business activities encompass the real
estate-related business and the provision of recruitment
services.  Headquartered in Tokyo, Yokogawa Electric has 92
subsidiaries and 14 associated companies in Japan, as well as
overseas markets, such as the United States, Singapore, the
Netherlands, Brazil, Korea and China.

As of June 20, 2007, Standard and Poors still assign the company
a BB+ on both its long-term local and foreign issuer credit
rating.




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


ALITALIA SPA: MatlinPatterson Rejoins Stake Race Sans Partners
--------------------------------------------------------------
The Italian Finance Ministry has allowed MatlinPatterson Global
Advisers LLC to submit a binding offer for Italy's 39.9% stake
in Alitalia S.p.A., various reports say.

The fund was part of the consortium of TPG Capital and
Mediobanca S.p.A. that, along with rivals OAO Aeroflot-
Unicredito Italiano S.p.A. and AirOne S.p.A. and Intesa-San
Paolo S.p.A., qualified for the final round of bidding for a
majority stake in Alitalia.

MatlinPatterson's consortium, however, pulled out its bid,
saying it was not "in a position to comply with all of the
requirements," which it described as "too complex and cryptic."
A source close to the consortium told the Wall Street Journal
that the group was apprehensive it could not meet the July 2
deadline for submission of final offers and business plan.

In an e-mailed statement to Bloomberg News, the Finance Ministry
said MatlinPatterson "confirmed its interest in accessing
Alitalia's data room and starting due diligence aimed at
presenting a binding offer."

Italy, which is selling a minimum of 39.9% stake in Alitalia,
gave the bidders until 5:00 p.m. on July 2 to present their
binding offers.

                         About Alitalia

Headquartered in Rome, Italy, Alitalia S.p.A. --
http://www.alitalia.it/-- provides air travel services for
passengers and air transport of cargo on national, international
and inter-continental routes.  The company also operates in
Argentina, China, and Japan.

The Italian government owns 49.9% of Alitalia.

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.


IMPERIAL CHEMICAL: Snubs Akzo Nobel's GBP7 Billion Takeover Bid
---------------------------------------------------------------
The Board of Directors for Imperial Chemical Industries Plc
unanimously rejected a GBP7 billion takeover approach by Akzo
Nobel N.V.

The Board rejected the cash offer of 600 pence per share as it
significantly undervalues ICI, the company said in a statement.
The Board is very confident in the Group's strategy and strong
growth prospects.

Akzo Nobel, however, said it is not ruling out any possible
offer for ICI.

                      About Akzo Nobel

Headquartered in Arnhem, the Netherlands, Akzo Nobel N.V. --
http://www.akzonobel.com/-- provides coatings, chemicals, and
human and animal healthcare products worldwide.  It operates
through four segments: Coatings, Chemicals, Organon and
Intervet.  The Coatings segment's product areas are decorative
coatings, industrial activities, marine and protective coatings,
and car refinishes.  The Chemical segment offers pulp and paper
chemicals, base chemicals, surfactants and polymer chemicals.
Organon offers brand name prescription pharmaceuticals in the
fields of gynecology, fertility, neuroscience and anesthesia.
Intervet offers vaccines and pharmaceuticals for livestock,
aquatic and companion animals.

                    About Imperial Chemical

Headquartered in London, England, Imperial Chemical Industries
Plc -- http://www.ici.com/-- is a major paints, adhesives and
specialty products business with products and ingredients
developed for a wide range of markets.

The company has a number of Regional and Industrial businesses
in Argentina, India and Pakistan.  It has around 26,000
employees and had sales in 2006 of GBP4.8 billion.

At Dec. 31, 2006, the company's balance showed GBP4.29 billion
in total assets, GBP4.48 billion in total liabilities and GBP189
million in stockholders' deficit.


NIPPON SHEET: Posts JPY17.52B Net Income for FY Ended March 31
--------------------------------------------------------------
Nippon Sheet Glass Company, Limited, posted a JPY17.52-billion
net income for the year ended Mar. 31, 2007, a rise of 1,352.40%
from the net income of JPY1.21 billion for the year ended
March 31, 2006.

Sales for the fiscal year 2007 went up slightly to
JPY177.67 billion, while cost of goods sold and overhead
amounted to JPY141.78 billion and JPY37.42 billion,
respectively, resulting in an operating loss of JPY1.52 billion,
against an operating income of JPY656.00 million a year earlier.

The company posted a net non-operating gain of JPY35.10 billion,
1,225.45% more than the net non-operating gain of
JPY2.65 billion posted a year earlier.

The Troubled Company Reporter - Asia Pacific reported on
May 25, 2007, that Nippon Sheet, after acquiring U.K.-based
Pilkington PLC in June 2006, announced its forecast of its
operations on July 6, 2006.  However, due to recognition of
various expenses related to the acquisition, foreign currency
fluctuation, valuation of intangible fixed assets and goodwill,
and fuel cost increase, the company was made to revise its
outlook.

Consolidated net income, which was forecast to jump to
JPY30 billion is now expected to drop to JPY15 billion, and
consolidated income before ordinary taxes was predicted to go up
to JPY25 billion, is now changed to JPY8 billion.

According to Reuters Key Developments, Jiji Press has reported
that Nippon Sheet expects a consolidated full-year outlook for
revenue of JPY830.00 billion, operating profit of JPY42.00
billion, ordinary profit of JPY24.00 million and net profit of
JPY15.00 billion for the fiscal year ending Mar. 31, 2008.  The
report added that the company also issued mid-term dividend
outlook of JPY3.00 per share and year-end dividend forecast of
JPY3.00 per share for the fiscal year ending March 31, 2008.

Additionally, the report states that Nippon Sheet expects to
record JPY13.07 billion extraordinary profit from the sale of
its securities, for fiscal year ending March 2008.

                     About Nippon Sheet

Headquartered in Tokyo, Nippon Sheet Glass Company, Limited
-- http://www.nsg.co.jp-- Company operates in four business
divisions.  Its Glass and Construction Material division
manufactures, processes and sells various types of glasses, such
as float plate, polished wire, heat absorbing, heat reflecting,
reinforced, laminated, double-layer, vacuum, fireproof,
template, mirror and ornamental glass, as well as sashes.  It
also supplies construction materials, and interior accessories
for stores.  The Information and Electronics division offers
optical products, fine glass products, industrial glass
products, liquid crystal display (LCD) products and others.  Its
Glass Fiber division is engaged in the manufacture, processing
and sale of special glass fiber products, air filter-related
items and others.  The Others division is involved in the
facility engineering and the test analysis businesses, among
others.

The company has operations in Argentina, the United States, and
Austria.

Standard & Poor's Ratings Services affirmed on June 20, 2006,
its BB+ long-term corporate credit and long-term senior
unsecured debt ratings on Nippon Sheet Glass Co. Ltd., following
the company's successful acquisition of U.K.-based Pilkington
PLC.


BOSTON SCIENTIFIC: Buys Prostate Treatment Tech from Celsion
------------------------------------------------------------
Boston Scientific Corporation has purchased technology for
treating symptomatic benign prostatic hyperplasia (BPH, often
referred to as enlarged prostate) from Celsion Corporation,
following approval of the acquisition by Celsion stockholders at
the company's annual meeting on June 13.  The purchase consists
primarily of the Prolieve(R) Thermodilatation System, which
Boston Scientific has exclusively distributed since 2004.

BPH affects many men over the age of 50 and can have a
significant impact on quality of life including a frequent need
to urinate and pain or burning while urinating.  The Prolieve
System is a non-surgical, less invasive, microwave-based
treatment for symptomatic BPH, which is routinely performed in
the physician's office.  The Prolieve System's transurethral
catheter uses microwave heating to reduce the enlarged prostate
tissue and improve urine flow.  The catheter also includes a
dilatation balloon, a feature not available in other currently
available microwave technologies for BPH.  The balloon is used
to dilate, or open, the prostatic urethra during the microwave
treatment.

"The acquisition of the Prolieve System results from the
successful four- year relationship between Boston Scientific and
Celsion," said Eric Goorno, President of Boston Scientific's
Urology/Gynecology business.  "This purchase demonstrates Boston
Scientific's continued commitment to improving treatment options
for those suffering from urologic conditions, including BPH."

                    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.


COMUNICACION DE ALTO: Claims Verification Deadline Is Aug. 22
-------------------------------------------------------------
Luis Maria Remanteria, the court-appointed trustee for
Comunicacion de Alto Standing SA's bankruptcy proceeding,
verifies creditors' proofs of claim until Aug. 22, 2007.

Mr. Remanteria will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 26 in Buenos Aires, with the assistance of Clerk
No. 51, 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 Comunicacion de Alto 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 Comunicacion de
Alto's accounting and banking records will be submitted in
court.

La Nacion didn't state the reports submission dates.

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

The debtor can be reached at:

         Comunicacion de Alto Standing SA
         Mendoza 236
         Buenos Aires, Argentina

The trustee can be reached at:

         Luis Maria Remanteria
         Piedras 1319
         Buenos Aires, Argentina


ENKAY SA: Proofs of Claim Verification Ends on Sept. 3
------------------------------------------------------
Horacio Jose Caliri, the court-appointed trustee for Enkay
S.A.'s bankruptcy proceeding, verifies creditors' proofs of
claim until Sept. 3, 2007.

Mr. Caliri will present the validated claims in court as
individual reports on Nov. 20, 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 Enkay 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 Enkay's accounting
and banking records will be submitted in court on Nov. 27, 2007.

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

The trustee can be reached at:

         Horacio Jose Caliri
         Lavalle 1206
         Buenos Aires, Argentina


INTERCOM SRL: Proofs of Claim Verification Deadline Is Aug. 9
-------------------------------------------------------------
The court-appointed trustee for Intercom S.R.L.'s bankruptcy
proceeding, verifies creditors' proofs of claim until
Aug. 9, 2007.

Infobae didn't state the name of the trustee.

The trustee will present the validated claims in court as
individual reports on Sept. 21, 2007.  The National Commercial
Court of First Instance in Cordoba 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 Intercom 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 Intercom's accounting
and banking records will be submitted in court on Nov. 15, 2007.

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

The debtor can be reached at:

         Intercom S.R.L.
         Cosquin 1238
         Barrio Jardin, Ciudad de Cordoba
         Cordoba, Argentina


PROLIMEC SRL: Proofs of Claim Verification Ends on Sept. 4
----------------------------------------------------------
Nora Mabel Pszemiarowee, the court-appointed trustee for
Prolimec S.R.L.'s bankruptcy proceeding, verifies creditors'
proofs of claim until Sept. 4, 2007.

Ms. Pszemiarowee will present the validated claims in court as
individual reports on Oct. 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 Prolimec 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 Prolimec's accounting
and banking records will be submitted in court on Nov. 28, 2007.

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

The trustee can be reached at:

         Nora Mabel Pszemiarowee
         Avenida Corrientes 1257
         Buenos Aires, Argentina


KINEDYNE SOUTH: Proofs of Claim Verification Is Until Aug. 8
------------------------------------------------------------
Oscar Arias, the court-appointed trustee for Kinedyne South
America SA's bankruptcy proceeding, verifies creditors' proofs
of claim until Aug. 8, 2007.

Mr. Arias 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. 1, 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 Kinedyne South 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 Kinedyne South's
accounting and banking records will be submitted in court.

La Nacion didn't state the reports submission dates.

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

The debtor can be reached at:

         Kinedyne South America SA
         Avenida Julio A. Roca 781
         Buenos Aires, Argentina

The trustee can be reached at:

         Oscar Arias
         Carlos Pellegrini 1063
         Buenos Aires, Argentina


SAFEGUARD SRL: Trustee Verifies Proofs of Claim Until Aug. 9
------------------------------------------------------------
Alberto Javier Samsolo, the court-appointed trustee for
Safeguard S.R.L.'s reorganization proceeding, verifies
creditors' proofs of claim on Aug. 9, 2007.

Mr. Samsolo will present the validated claims in court as
individual reports on Sept. 20, 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 Safeguard 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 Safeguard's
accounting and banking records will be submitted in court on
Nov. 1, 2007.

The informative assembly will be held on March 26, 2008.
Creditors will vote to ratify the completed settlement plan
during the assembly.

The debtor can be reached at:

         Safeguard S.R.L.
         Capdevila 2851
         Buenos Aires, Argentina

The trustee can be reached at:

         Alberto Javier Samsolo
         Paraguay 1225
         Buenos Aires, Argentina


TELECOM ARGENTINA: Sells Publicom to Yell Publicidad for US$61MM
----------------------------------------------------------------
LatinLawyer Online reports that Telecom Argentina has sold its
classified advertising directory Publicom to Spanish firm Yell
Publicidad for US$61 million.

As reported in the Troubled Company Reporter-Latin America on
April 4, 2007, Telecom Argentina disclosed a plan to sell its
telephony directory business Publicom to Yell Publicidad for
US$60.8 million.  Telecom Argentina would close the deal for the
service, which expanded to include more community specific
publications, by April 12.  Publicom's telephone directory
prints three million copies printed yearly.  It would add to
Yell Publicidad's directory business, which in Argentina also
includes Paginas Doradas.

The sale is part of Telecom Argentina's strategy to concentrate
on its core businesses, LatinLawyer Online says.  Proceeds from
the sale will be allotted to the partial repayment of its 2005
financial debt restructuring.

Telecom Argentina sold the subsidiary with the assistance of
Marval, O'Farrell & Mairal, LatinLawyer Online relates.

According to the report, Publicom edits, publishes, and
distributes yellow pages and Telecom Argentina's white pages,
which is Argentina's directory of residential subscriber
listings.

Juan Manuel Diehl Moreno who led Marval, told LatinLawyer Online
that as part of its concession, Telecom Argentina must keep on
producing the white pages.  Publicom will continue to print
them.

Negotiating a contract to let Yell Publicidad acquire the yellow
pages, while allowing Publicom to carry on work for Telecom
Argentina on the white pages required some focus, LatinLawyer
Online states, citing Mr. Moreno.

"We had to help Telecom Argentina to sell its yellow pages
business while negotiating terms for the continued editing,
printing and distribution of the white pages," Mr. Moreno
commented to LatinLawyer Online.

Headquartered in Buenos Aires, Telecom Argentina S.A. --
http://www.telecom.com.ar/index-flash.html-- is the fixed-line
operator for local and long-distance services in northern and
southern Argentina.  It also provides cellular and PCS phone
services in Argentina, as well as in Paraguay through a 68%
stake in Nocleo.  France Telecom formerly controlled the company
through its Nortel Inversora venture with Telecom Italia.
France Telecom sold most of its stake in 2003 to the Werthein
Group, an Argentine agricultural concern owned in part by vice
chairman Gerardo Werthein.  Nortel continues to be Telecom
Argentina's largest shareholder with a 55% stake.  Nortel is
owned by Sofora, a consortium owned by Telecom Italia (50%), the
Werthein Group (48%), and France Telecom (2%).

                        *     *     *

As reported on Oct 11, 2006, Standard & Poor's Ratings Services
raised Telecom Argentina S.A.'s counterparty credit rating to
B+/Stable/ from B/Stable following the upgrade of the Republic
of Argentina to 'B+' from 'B'.


* ARGENTINA: Holding Off Bank of the South Launching
----------------------------------------------------
Venezuela, along with five Latin American governments, has
postponed the execution of an agreement to establish a regional
bank that would compete with the International Monetary Fund and
the World Bank.

The Bank of the South was previously set for launching on June
26, with each member-country contributing equally to its capital
base.

Ecuadorian Ministry of Economy told AFP that no new date has
been set.

"In principle, the agreement was to be initialed on June 26th.
However, it seems that some countries failed to come to terms
and the execution will be delayed for some additional days," an
unnamed source was quoted by El Universal as saying.

The proposed bank's board will be comprised of heads of state of
Argentina, Bolivia, Brazil, Ecuador, Paraguay, and Venezuela.

The bank, advocated by Venezuelan President Hugo Chavez, will be
established to rival the services offered by the IMF and the
World Bank, on much lower rates and better financing conditions.

As previously reported, Brazilian Finance Minister Guido Mantega
said that founding members' contributions would range between
US$500 million to US$300 million.

                       *     *     *

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 E L I Z E
===========


* BELIZE: Seeks Water Supply Funding from Caribbean Dev't Bank
--------------------------------------------------------------
The Belizean government has sought for a grant from the
Caribbean Development Bank to fund feasibility studies for the
installation of a water supply system in the nation's river
valley, the bank said in a statement posted on its Web site.

According to the bank's statement, a consultant appointed by the
government's national development ministry will conduct the
two-phase study.

Caribbean Development said that the first phase will examine the
technical options for the project and its environmental and
social impact as well financial feasibility.  When the
recommendations from this phase gets the approval of Belize and
the CDB, the consultant will launch a second phase consisting of
final project designs and cost estimates.

Firms within Caribbean Development member nations must present
initial offers by July 16.  Three to six applicants will be
chosen to submit final proposals, Business News Americas
reports.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 22, 2007, Standard & Poor's Ratings Services raised its
long- and short-term foreign currency sovereign credit ratings
on Belize to 'B' from 'SD' following the completion of the
government's debt restructuring.  At the same time, Standard &
Poor's raised its long-term local currency sovereign credit
rating on Belize to 'B' from 'CCC+' and its short-term local
currency sovereign rating to 'B' from 'C'.  The outlooks on both
the long-term foreign and local currency sovereign credit
ratings are stable.  Standard & Poor's also assigned its 'B'
rating to Belize's new US$546.8 million step-up bonds due
Feb. 20, 2029, issued at the conclusion of the debt exchange.
These bonds bear the interest of 4.25% for the first three
years, 6% for years four to five, and 8.5% thereafter, and start
amortizing in 2019.




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


ACCOUNTANTS PROFESSIONAL: Final General Meeting Is on July 3
------------------------------------------------------------
The Accountants Professional Risk Insurance Ltd.'s final general
meeting is scheduled on July 3, 2007, at 9:30 a.m. at:

         Craig Appin House, 8 Wesley Street
         Hamilton, Bermuda

These matters will be taken up during the meeting:

     -- receiving an account showing the manner in which the
        winding-up of the company has been conducted and its
        property disposed of and hearing any explanation that
        may be given by the liquidator;

     -- determination by resolution the manner in which the
        books, accounts and documents of the company and of the
        liquidator shall be disposed; and

     -- passing of a resolution dissolving the company.

The liquidators can be reached at:

         Paul Van Elten
         Keith Vance
         Craig Appin House, 8 Wesley Street
         Hamilton, Bermuda


FIRST SHIP: Sets Final General Meeting for July 2
-------------------------------------------------
First Ship Lease Ltd.'s final general meeting is scheduled on
July 2, 2007, at 10:00 a.m., at:

         Thistle House, 4 Burnaby Street
         Hamilton, Bermuda

These matters will be taken up during the meeting:

     -- receiving an account showing the manner in which the
        winding-up of the company has been conducted and its
        property disposed of and hearing any explanation that
        may be given by the liquidator;

     -- determination by resolution the manner in which the
        books, accounts and documents of the company and of the
        liquidator shall be disposed; and

     -- passing of a resolution dissolving the company.

The liquidators can be reached at:

             Cheong Chee Tham
             Peter Martin
             Thistle House, 4 Burnaby Street
             Hamilton, Bermuda


FOSTER WHEELER: Board Selects Lisa Wood as VP & Controller
----------------------------------------------------------
Foster Wheeler Ltd.'s board of directors has elected Lisa Zardet
Wood to the position of vice president & controller, effective
immediately.  Ms. Wood, who had most recently served as the
chief accounting officer for Foster Wheeler, Inc., a wholly
owned subsidiary of the company, replaces Brian Ferraioli, who
has resigned to pursue other employment opportunities.

Ms. Wood joined a subsidiary of the company in 1997 as deputy
chief auditor and subsequently held positions of increasing
responsibility in the finance department before assuming the
role of chief accounting officer in 2003.  Prior to joining
Foster Wheeler, she was with Deloitte & Touche for nine years,
ultimately serving as accounting and auditing manager.  Ms. Wood
has a Bachelor of Science degree in accounting from DeSales
University.  She is a Certified Public Accountant.

The company has named Edward G. Carr to succeed Wood as FWI's
chief accounting officer.   Mr. Carr was most recently director
of SEC reporting, a position he has held since he joined Foster
Wheeler in 2004.  Prior to that, he was director of corporate
finance for Intelligroup, Inc. for five years.  His background
also includes seven years as an audit manager with Ernst &
Young.  Mr. Carr holds a Master of Science degree in Accounting
and a Bachelor of Science degree in Business
Administration/Accounting, both from West Virginia University.
He is a Certified Public Accountant.

"We are fortunate to have individuals as talented and
knowledgeable as Lisa and Ed to step into these positions," said
John T. La Duc, executive vice president & chief financial
officer.  "They both have been an integral part of the company's
transformation over the past several years as Foster Wheeler
strengthened its balance sheet, adopted new internal controls
associated with Sarbanes-Oxley, and implemented efficient and
disciplined procedures for the timely consolidation, analysis,
and reporting of financial information.  We expect a seamless
transition, and we are confident that Lisa and Ed will maintain
the company's 'best in class' practices in financial reporting."

Foster Wheeler Ltd. (Nasdaq: FWLT) -- http://www.fwc.com/--
offers a broad range of engineering, procurement, construction,
manufacturing, project development and management, research and
plant operation services.  Foster Wheeler serves the refining,
upstream oil and gas, LNG and gas-to-liquids, petrochemical,
chemicals, power, pharmaceuticals, biotechnology and healthcare
industries.  The corporation is based in Hamilton, Bermuda, and
its operational headquarters are in Clinton, New Jersey.

                        *     *     *

As reported in the Troubled Company Reporter on Dec. 18, 2006,
Standard & Poor's Ratings Services revised its outlook on Foster
Wheeler Ltd. to positive from stable.

At the same time, Standard & Poor's affirmed its 'B+' corporate
credit rating and other ratings on the company.  The company had
about US$217 million of total debt at Sept. 29, 2006.


GLOBAL CROSSING: Serves as Networx Subcontractor to AT&T Gov't
--------------------------------------------------------------
Global Crossing Ltd. will provide a range of information
technology services to federal government agencies and serve as
a subcontractor to AT&T Government Solutions, a business unit of
AT&T, Inc.  AT&T was awarded a Networx Enterprise contract last
month by the U.S. General Services Administration.

Networx Enterprise is a companion contract to Networx Universal,
awarded to the AT&T team in March.  Under the Networx Enterprise
contract, Global Crossing will work with AT&T to compete for
various high-capacity bandwidth services to specific geographic
regions served by federal government agencies.  Global Crossing
will provide services similar to those offered under Networx
Universal.  These include such in-demand government services as
SDH/SONET, optical wavelengths, international private lines and
dark fiber.

"This second contract win is a revalidation of Global Crossing's
relationship with AT&T and its Networx team," said Alan
Rosenberg, Global Crossing's vice president of federal
solutions.  "Whether a U.S. Government agency utilizes the
Networx Universal or Networx Enterprise procurement method to
pick their communications provider, it will have access to
Global Crossing's unique and global networking capabilities,
IPv6 connectivity and the most advanced security available."

The AT&T Networx team brings together industry-leading
networking and IT capabilities, which also includes:

   * Northrop Grumman Information Technology of McLean, Va.;
   * EDS of Herndon, Va.;
   * GTSI Corp. of Chantilly, Va.;
   * SRA International, Inc., of Fairfax, Va.; and
   * Bechtel National of Frederick, Md.

Networx Enterprise is an Indefinite Delivery - Indefinite
Quantity (ID/IQ) contract with a potential value of US$20
billion over the next 10 years.  Networx will replace the
expiring GSA FTS2001 and FTS2001 Crossover contract vehicles.
The ID/IQ contract gives AT&T, Global Crossing, its teammates,
and others the right to compete for specific task orders within
the scope of the Networx Enterprise contract.  Networx
Enterprise does not require contractors to provide services to
as many locations.

                       About Global Crossing

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

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


WEST SOLUTIONS: Final General Meeting Is Set for July 3
-------------------------------------------------------
West Solutions Ltd.'s final general meeting will be at 11:00
a.m. on July 3, 2007, or as soon as possible, at the
liquidator's place of business.

West Solutions shareholders will determine during the meeting,
through a resolution, the manner in which the books, accounts
and documents of the company and of the liquidator will be
disposed.

The liquidator can be reached at:

             Jennifer Y. Fraser
             Canon's Court, 22 Victoria Street
             Hamilton, Bermuda




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


* BOLIVIA: Holding Off Bank of the South Launching
--------------------------------------------------
Venezuela, along with five Latin American governments, has
postponed the execution of an agreement to establish a regional
bank that would compete with the International Monetary Fund and
the World Bank.

The Bank of the South was previously set for launching on June
26, with each member-country contributing equally to its capital
base.

Ecuadorian Ministry of Economy told AFP that no new date has
been set.

"In principle, the agreement was to be initialed on June 26th.
However, it seems that some countries failed to come to terms
and the execution will be delayed for some additional days," an
unnamed source was quoted by El Universal as saying.

The proposed bank's board will be comprised of heads of state of
Argentina, Bolivia, Brazil, Ecuador, Paraguay, and Venezuela.

The bank, advocated by Venezuelan President Hugo Chavez, will be
established to rival the services offered by the IMF and the
World Bank, on much lower rates and better financing conditions.

As previously reported, Brazilian Finance Minister Guido Mantega
said that founding members' contributions would range between
US$500 million to US$300 million.

                        *     *     *

Fitch Ratings assigned these ratings on Bolivia:

                    Rating    Rating Date

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


* BOLIVIA: Peruvian Congress Mulling Mining Pact with Nation
------------------------------------------------------------
The Peruvian congress said in a statement that it is studying a
proposal to enter into an accord with Bolivia to strengthen
relations in the mining sector.

According to the congress' statement, the congress ratified a
measure by 57 votes versus 33 to send the proposal to its
constitutional committee for review.  The release didn't
disclose details on the proposed pact.

The governments of Bolivia and Peru agree that mining is a vital
part of their respective economies.  However, they differ on
policies toward the sector, BNamericas states.

                         *     *     *

Fitch Ratings assigned these ratings on Bolivia:

                    Rating    Rating Date

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




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


BANCO NACIONAL: Twelve-Month Disbursements Reached BRL57.7 Bil.
---------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social's
disbursements reached BRL57.7 billion between June 2006 and May
2007, a 26% expansion in the period.  Approvals sustained the
more accelerated growth pace in relation to the amount released
and added up to BRL88.3 billion, which corresponds to a 67%
increase in relation to the 12 previous months.  The performance
of framings and consultations was also positive in the period,
or 33% (BRL106.6 billion) and 27%(BRL118.4 billion) higher,
respectively.

All major segments recorded increased disbursements and
approvals in the last 12 months, as compared to the previous
period.  Agriculture, which had been showing successive declines
since the sector crisis started, reverted this scenario, showing
positive result -- 2% increase -- with BRL3.9 billion being
released between June 2006 and May 2007.  Approvals increased
28%, adding up to BRL4.8 billion in the same period.

Disbursements of BRL30 billion to the industry, in the last 12
months, expanded 35% as compared to the previous period.
Approvals added up to BRL44.7 billion, equivalent to a 60%
increase.  The infrastructure area grew 79% in 12 months, with
approvals adding up to BRL31.3 billion.  Disbursements to the
sector were BRL18.4 billion in the period under analysis, or a
9% expansion as compared to the previous 12 months.

In May, BNDES disbursements were a total BRL4.2 billion, while
approvals reached BRL7.3 billion.  Framings added to BRL10.5
billion, while inquiries reached BRL13 billion.

Social

Social area performance was positive in all segments, with a 57%
increase between June 2006 and May 2007.  The number of
operations also increased, by 24%, during the period under
analysis.  A 206% higher amount was disbursed to the health
sector in the last 12 months, as compared to the previous
period.  For environmental sanitation projects, another 46%, and
in urban development the increase was 31%.

Size

Micro, small and medium-sized companies received 20% more funds
from BNDES in the last 12 months, as compared to the previous
period, adding up to BRL9.2 billion.  The number of operations
expanded 51% during the period under analysis.

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: Grants US$94-Mil. Loan for 11 Ships Construction
----------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social aka BNDES
approved two financing operations, for a total amount of US$94.1
million, to Saveiros, Camuyrano - Servicos Maritimos S.A. for
the acquisition of five maritime support vessels (US$60.9
million financing) and six port and ocean tugboats (amounting to
US$33.2 million).

The vessels, financed with funds from the Merchant Marine Fund,
will be built at Estaleiro Wilson Sons Comercio Industria e
Agencia de Navegacao Ltda., located in Guaruja (SP).  These
ships shall be destined to provide services to companies
dedicated to the exploration and production of oil and natural
gas.

The project will allow the maintenance of around 460 direct jobs
in the shipyard, during the construction of the vessels.  With
this, the project contributes for the formation of local
specialized labor, proceeding with the reactivation of a segment
with highly capacity to generate jobs.

Besides encouraging the strengthening of the national naval
construction industry, the project financed by BNDES contributes
to stimulate the participation of companies with Brazilian flag
vessels in the maritime support sector.

With high technology, the five maritime support vessels type PSV
(Platform Supply Vessel) rely on a dynamic positioning system,
which allows them a high maneuver degree.  PSVs are designed to
maintain offshore plants and exploration, prospecting and
production systems in operation.

These maritime support vessels are destined to safely and
quickly perform activities in any ocean conditions and,
therefore, enjoy excellent maneuver capacity to allow them
approach the platforms.  Their dynamic positioning system allows
the vessel to remain fix in a given position, without moving,
which is extremely useful during the loading and unloading
operations for material supply.

Similar to that, the six azimuthal propulsion port and ocean
tugboats rely on high technology, high productivity and safety
index, combined with low operational and maintenance cost.  The
azimuthal propulsion technology allows higher performance in
maneuvers and agility to ship docking and undocking operations.

The tugboats shall be built in such a way to comply with all
norms and regulations as required by the Brazilian maritime
authority and environmental agencies.  Engines to be used for
the tugboats are latest generation, with technology that
combines low fuel consumption with lower gas emissions in the
atmosphere.

With these operations, Saveiros, Camuyrano intends to
consolidate its position as service provider in the market of
offshore support vessels.  The company is controlled by the
group Wilson, Sons de Administracao e Comercio Ltda.  The Wilson
Sons shipyard was the first one in Brazil to receive
Certification ISPO 9002, attested by Lloyd's Register Quality
Assurance, specialized in the construction of tugboats,
suppliers (PSVs) and steel and aluminum mid-sized vessels, also
performing naval repair services.

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: Okays US$94-Million Loan for Saveiros Camuyrano
---------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social said in a
statement that it has ratified a US$94-million loan for marine
services firm Saveiros Camuyrano for the construction of 11
vessels for oil services.

Banco Nacional told BNamericas that Saveiros Camuyrano will
borrow the money to buy five platform supply vessels and six
towage vessels.

According to BNamericas, the transaction will be funded through
the "Brazilian government's Merchant Marine Fund.  The vessels
will be constructed in the Wilson Sons shipyard in Sao Paulo.

The vessels will provide services to firms from the oil and gas
exploration and production sector, 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.


HEXCEL CORP: Selling Remaining Assets to JPS for US$75 Million
--------------------------------------------------------------
Hexcel Corporation has entered into a definitive agreement for
the sale of the remaining assets of its U.S. Electronics,
Ballistics & General Industrial reinforcement product lines to
JPS Industries Inc.  The agreement provides for an initial cash
purchase price of US$62.5 million plus up to US$12.5 million of
additional payments dependent upon future sales of the
Ballistics product line.  The additional payments will be earned
on Ballistics sales in excess of US$70 million per year during
the three-year period following completion of the sale.
Ballistics sales for the twelve-month period ended May 31, 2007,
were US$96 million.

The initial cash purchase price (excluding the potential
additional payments) is estimated to result in a US$2 million to
US$3 million after-tax loss for Hexcel.  The additional payments
will be recorded as income when received.  Hexcel will retain
certain pre-closing liabilities, including those arising out of
the previously disclosed Department of Justice civil
investigation of allegedly defective Zylon fabric used in
ballistic vests.  EBGI had third party sales of US$46.1 million
in the first quarter of 2007 and US$143.6 million in the full
year of 2006.  EBGI assets will now be classified as assets held
for sale and its results will be reported as discontinued
operations in Hexcel's 2007 second quarter financial statements.
The EBGI transaction is subject to customary closing conditions
and is expected to close in the third quarter of 2007.

Mr. David Berges, Hexcel's Chairman and CEO commented, "We are
pleased to bring our year long portfolio realignment to a
successful conclusion.  While this last transaction will be
slightly dilutive in the short term, the sale of EBGI, combined
with the previously completed sales of our Architectural
business in the first quarter of 2007 and our TechFab joint
venture interest in the fourth quarter of 2006, results in an
after-tax gain of approximately US$14 million for the total
program, excluding the additional payments.  The three
transactions and their US$110 million of gross cash proceeds
will help Hexcel achieve its lowest debt level in 10 years.
More importantly, it positions Hexcel to focus on the rapidly
growing demand for advanced composite materials in aerospace,
renewable energy, and other high performance industries."  In
closing, Mr. Berges noted, "The employees of these businesses
are to be congratulated on their performance through this last
year of uncertainty.  They remained dedicated to their customers
and met their commitments month after month. We thank them for
their many contributions to Hexcel."

Headquartered in Stamford, Connecticut, Hexcel Corporation --
http://www.hexcel.com/-- (NYSE/PCX: HXL) develops, manufactures
and markets lightweight, high-performance reinforcement
products, composite materials and composite structures for use
in commercial aerospace, space and defense, electronics, and
industrial applications.

The company has operations in Australia, Brazil, China, France
and Japan, among others.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
April 5, 2007, Moody's Investors Service has raised Hexcel
Corp.'s Corporate Family Rating to Ba3 from B1.  The ratings on
Hexcel's senior secured credit facility have been upgraded to
Ba1 from Ba2, while the subordinated notes ratings were upgraded
to B1 from B3.  Moody's said the ratings outlook is stable.

As reported in the Troubled Company Reporter-Latin America on
March 30, 2007, Standard & Poor's Ratings Services raised its
ratings, including the corporate credit to 'BB' from 'BB-', on
aerospace supplier Hexcel Corp.  S&P said the outlook is stable.


LUPATECH SA: S&P Puts BB- Rating on Proposed US$200-Mil. Notes
--------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB-' long-term
corporate credit rating to Lupatech S.A.  S&P also assigned our
'BB-' foreign currency senior unsecured debt rating to
Lupatech's proposed US$200 million perpetual notes.  The
outlook is stable.

The ratings on Lupatech reflect:

  -- the increase in Lupatech's debt leverage after the
     perpetual notes issuance (partially offset by the lower
     refinancing risks of this debt type);

  -- the significant concentration of the company's business in
     the oil and gas sector, in particular with Brazilian oil
     major Petroleo Brasileiro S.A. -  Petrobras (BBB-/Stable/--
     , Lupatech's prominent client);

  -- the company's recurring challenges of integrating acquired
     companies, and the expectations that Lupatech will continue
     to grow organically and through acquisitions in the next
     few years; and

  -- its relatively smaller size when compared to international
     competitors.

"These risks are partially offset by Lupatech's leadership
position in most segments in which it operates, the recent
broadening of its product portfolio through acquisition, and
improvement of its local geographical diversification with new
operations in Argentina," said Standard & Poor's credit analyst
Beatriz Degani.  Also offsetting the risks are the favorable
market environment for the oil and gas industry in the medium
term (Lupatech's chief end market), in the context of its long-
lasting relationship with Petrobras; and the significant
contribution of high value-added products, with high
technological content to the company's results, which is
reflected in its robust operating margins.

The ratings also consider the company's financial and business
discipline for acquisitions, and Lupatech's access to the
capital markets (with potential additional equity issuance).
Lupatech's debt outstanding was US$121.9 million in March 2007.

With US$113.7 million in revenues in the 12 months ended March
2007, Lupatech is a capital goods producer with operations in
Brazil (main portion of cash flow) and Argentina.  Lupatech has
been presenting an aggressive growth strategy that includes
growing both organically and through acquisitions.

The stable outlook reflects our expectations that Lupatech will
be able to maintain its good competitive position, in particular
with its main client Petrobras, and that the company's results
will recover during the next quarters as its main clients'
investments materialize.  The stable outlook also factors in the
expectations that the company will increase leverage with the
perpetual bond issuance, but the net debt-to-EBITDA ratio should
stand at around 2.5x.

The outlook could change to negative upon a significant change
in Lupatech's major clients' (namely Petrobras) investment plans
with important impacts on the company's revenues, if future
acquisitions represent a financial or operational challenge
higher than incorporated in the ratings.

On the other hand, a positive outlook revision would depend on
the company's consolidation of its recent acquisitions and
strong diversification of its client base and end markets.
Changing the outlook to positive would also depend on Lupatech's
improving its financial profile more permanently, with funds
from operations-to-total debt and EBITDA interest coverage
ratios in excess of 20% and 3.0x, respectively.

Lupatech S.A. is primarily engaged in two business segments
whose products require a high level of expertise, technological
innovation and quality, specifically defined as flow and metal
segments.  In the flow segment, Lupatech is Brazil's leading
producer and seller of industrial valves essentially for the oil
and gas industry through MNA and Valmicro brands.  In the metal
segment, the Company is Brazil's industry leader and has been
recognized in the international market as an outstanding
manufacturer of complex casting parts and sub-assemblies for the
automotive industry worldwide through Microinox and arbonox
precise foundry and Steelinject ceramic injection processes.


LUPATECH SA: Moody's Assigns Ba3 Rating on US$200-Million Notes
---------------------------------------------------------------
Moody's Investors Service assigned a senior unsecured corporate
family rating of Ba3 on its global scale and A3.br on its
Brazilian national scale to Lupatech S.A.  Simultaneously,
Moody's assigned a foreign currency rating of Ba3 to the senior
unsecured perpetual notes in the amount of approximately US$200
million to be issued by Lupatech's full subsidiary Lupatech
Finance (Cayman Islands), to be irrevocably and unconditionally,
jointly and severally guaranteed by Lupatech and by its
operating subsidiaries:

   -- Carbonox Fundicao de Precisao Ltda,
   -- Cordoaria Sao Leopoldo Off-Shore Ltda,
   -- Esferomatic S.A.,
   -- Itasa Industria y Tecnologia en Aceros S.A.,
   -- Lupatech Petroima Equipamentos para Petroleo Ltda.,
   -- Metalurgica Ipe Ltda,
   -- Mipel Ind£stria e Comercio de Valvulas Ltda,
   -- Metalurgica Nova Americana Ltda,
   -- Valmicro Industria e Comercio de Valvulas Ltda,
   -- and Valvulas Worcester de Argentina S.A..

The foreign currency rating of the perpetual notes is not
constrained by Brazil's sovereign ceiling of Ba1, currently
under review for possible upgrade.  Outlook of all ratings is
stable.

Ratings assigned are:

Lupatech S.A.:

   -- Senior Unsecured Corporate Family Rating: Ba3 (Global
      Local Currency); A3.br (Brazilian National Scale)

Lupatech Finance Ltd. (Cayman Islands):

   -- Approximately US$200 million Foreign Currency Senior
      Unsecured Guaranteed Perpetual Notes: Ba3

Outlook: stable

The Ba3 global local currency corporate family rating of
Lupatech reflects its small size relative to global peers, and
low product and geographic diversity.  The rating also
incorporates Lupatech's moderate dependency on Petroleo
Brasileiro S.A. -- Petrobras as its main client, and the
substantial event and integration risks associated with the
company's aggressive growth strategy through acquisitions, while
taking into consideration its leading market position in the
industrial valves segment, its longstanding relationship with
Petrobras, its high margins and return on assets, the benefits
of national content incentives for investments in the Brazilian
oil & gas sector and the good fundamentals for the oil and gas
industry over the near term, including a positive outlook for
investments in deepwater exploration, where the company is
focused.

Moody's rating of the perpetual notes at the same level as its
corporate family rating factors in the joint and several
guarantee from Lupatech's main operating subsidiaries
representing some 98% of its net revenues and EBITDA, in
addition to considering the low level of Lupatech's secured debt
at about 3.4% of total adjusted debt (pro-forma after the
issuance of the perpetual notes).  While Moody's has reviewed
preliminary draft legal documentation for the proposed perpetual
notes, the assigned rating assumes that there will be no
material variation from the drafts reviewed and that all
agreements will be legally valid, binding and enforceable.

While the Ba3 global scale rating reflects the global default
and loss expectation of Lupatech, the A3.br national scale
rating reflects the standing of the company's credit quality
relative to other domestic issuers.  National Scale Ratings are
intended as relative measures of creditworthiness among debt
issues and issuers within a country, enabling market
participants to better differentiate relative risks.  NSRs in
Brazil are designated by the ".br" suffix.  NSRs differ from
global scale ratings in that they are not globally comparable to
the full universe of Moody's rated entities, but only with other
rated entities within the same country.

The stable outlook reflects Moody's expectation that Lupatech
will continue to benefit from its good relationship with
Petrobras and that market conditions will remain supportive over
the near to medium term.  Also, the stable outlook incorporates
Moody's expectation that the company will prudently manage its
acquisition pace.

The ratings could come under upward pressure if Lupatech
succeeds in integrating acquisitions and materially expanding
its size, while reducing its leverage as measured by Total
Adjusted Net Debt to EBITDA to below 1.8x in top of investment
cycle conditions, and maintaining a healthy liquidity position.
The ratings would particularly benefit from acquisitions aimed
at improving the company's business profile by enlarging its
product and geographic diversification and gradually reducing
Lupatech's current dependency on Petrobras, while simultaneously
maintaining consolidated EBITDA margins above 30% and EBITA
return on assets above 20%.

Conversely, the ratings could be negatively affected if Total
Adjusted Net Debt to EBITDA exceeds 2.5x without prospects for
reduction in the short term.  With growth mainly driven by
acquisition, Moody's would expect that the strategic fit,
valuation and incremental leverage would be consistent with
management's disciplined historical standards, and that large
acquisitions would be partially financed with equity.  The
rating of the perpetual notes could come under downward pressure
if secured debt were to increase substantially or if newly
acquired assets remained outside the current guarantee
structure, leading to concerns over structural subordination of
the perpetual notes.

Lupatech S.A. is primarily engaged in two business segments
whose products require a high level of expertise, technological
innovation and quality, specifically defined as flow and metal
segments.  In the flow segment, Lupatech is Brazil's leading
producer and seller of industrial valves essentially for the oil
and gas industry through MNA and Valmicro brands.  In the metal
segment, the Company is Brazil's industry leader and has been
recognized in the international market as an outstanding
manufacturer of complex casting parts and sub-assemblies for the
automotive industry worldwide through Microinox and Carbonox
precise foundry and Steelinject ceramic injection processes.


NOVELIS INC: S&P Places BB Rating on US$860-Million Loan
--------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB' debt
rating, with a recovery rating of '2', to Novelis Inc.'s US$860
million secured term loan due 2014.  The '2' recovery rating
indicates an expectation of substantial (70%-90%) recovery in
the event of default.  Proceeds from the borrowings will be used
to refinance existing bank loans, which are being repaid in the
wake of the company's acquisition by Hindalco Industries Ltd.

The long-term corporate credit rating on Novelis is 'BB-'.  The
outlook is negative.  After giving effect to the proposed
refinancing, the company will have about US$2.9 billion of pro
forma fully adjusted debt at March 31, 2007.

"The ratings on Novelis reflect its aggressive financial risk
profile, characterized by a heavy debt burden and low margins
that have proven to be less stable than expected when the
company began stand-alone operations in January 2005," said
Standard & Poor's credit analyst Donald Marleau.   Nevertheless,
Standard & Poor's expects that Novelis' financial performance
will improve steadily in the next four to six quarters, as the
company improves its ability to manage the operating margin and
liquidity risks associated with can sheet price ceilings and
higher aluminum prices.

Based in Atlanta, Georgia, Novelis Inc., (NYSE: NVL) (TSX: NVL)
-- http://www.novelis.com/-- is the global provider of aluminum
rolled products and aluminum can recycling.  The company
operates in 11 countries and has approximately 12,900 employees.
Novelis has the capability to provide its customers with a
regional supply of technologically sophisticated rolled aluminum
products throughout Asia, Europe, North America and South
America.  Through its advanced production capabilities,
the company supplies aluminum sheet and foil to the automotive
and transportation, beverage and food packaging, construction
and industrial, and printing markets.

Novelis South America operates two rolling plants and primary
production facilities in Brazil in the Latin American region.
Novelis also has operations in Germany, Switzerland and Korea.


ORECK CORP: Weak Liquidity Position Cues S&P to Junk Rating
-----------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
ratings on New Orleans, Louisiana-based Oreck Corp. to 'CCC+'
from 'B-'.  At the same time Standard & Poor's lowered its
ratings on Oreck's existing senior secured bank facility to
'CCC+' from 'B-', on the company's proposed senior secured
first-lien credit facilities to 'B-' from B, and on its second-
lien facility to 'CCC-' from 'CCC'.  The existing senior secured
facility's recovery rating of '4' was affirmed, indicating the
expectation of average (30%-50%) recovery if a payment default
were to occur.

The proposed first- and second-lien facilities' recovery ratings
of '2' and '6', respectively, were affirmed, indicating the
expectation of substantial (70%-90%) recovery to first-lien
lenders and negligible (0%-10%) recovery to second-lien lenders
if a payment default were to occur.  The outlook is negative.
About US$180 million of total debt was outstanding at
April 30, 2007.

"The downgrade reflects our concerns about Oreck's very weak
liquidity position without access to a revolving credit
facility," said Standard & Poor's credit analyst Christopher
Johnson.  Significant operating challenges also remain,
including management's ongoing efforts to relocate and resume
normal manufacturing operations, and its ability to fill key
senior management positions.  "If the company is unable to close
on its proposed senior secured credit facilities in the near
term, we will withdraw the ratings on these proposed credit
facilities, and our ratings on the company's existing facilities
would remain in place," said Mr. Johnson.

Oreck is a niche and largely domestic manufacturer and
distributor of premium household and commercial vacuum cleaners,
air purifiers, and other household products.

Oreck sells throughout the world, including South America
(Brazil), the United Kingdom and Australia.


DAIMLERCHRYSLER: Chrysler Group & GETRAG Invests US$530 Million
---------------------------------------------------------------
Richard Chow-Wah, Vice President - Powertrain Manufacturing,
Chrysler Group, joined Indiana Governor Mitch Daniels to
officially name Tipton County, Indiana, as the site of a new
dual-clutch transmission manufacturing plant with partner
company, GETRAG Corporate Group.  The US$530 million investment
is another step in Chrysler Group's "Powertrain Offensive"
-- US$3 billion in investments to produce more fuel-efficient
engines, transmissions and axles for Chrysler Group.

"We appreciate the support that has been offered by state and
local officials to help bring this investment to Indiana," Mr.
Chow-Wah said.  "Together with our new partner, GETRAG, our
combined US$530 million investment in Tipton will create a
state-of-the art facility to manufacture fuel-efficient, dual-
clutch transmissions and reaffirm our long-term commitment to
producing vehicles that meet and exceed consumers' demands for
more economical-to-operate vehicles."

"This is an important day for the future of the UAW and
Chrysler, and in particular for the continued competitiveness of
our team here in the State of Indiana," General Holiefield, UAW
Vice President, who directs the union's DaimlerChrysler
Department, said.  "This investment is a significant step toward
realizing our vision to see this company and our union grow this
business and transform Chrysler into a stronger company that
will be competitive for the long run."

Located on a 145-acre site at the intersection of State Road 28
and U.S. 31 in Tipton County, GETRAG will have the operational
leadership of the plant, which will employ approximately 1,050
full-time Chrysler Group UAW-represented workers and 120
management employees from both companies.

The plant will produce 700,000 dual-clutch transmissions
annually.  Additionally, the plant will have a direct effect on
230 employees at Kokomo Casting and Kokomo Transmission who will
be dedicated to producing parts for the GETRAG plant.
Construction of the 804,000 square-foot facility is scheduled to
begin June 27, 2007, with production beginning in 2009.

"Indiana's comeback rolls on," Mr. Daniels said.  "The
investment is a tribute to the skill of Hoosier workers and the
pro-growth climate we are building in our state."

"Dual-clutch transmissions provide much better shift quality,
driving comfort, and superior fuel efficiency compared to more
conventional technologies such as torque converter automatics
and/or CVTs," Ulrich Kohler, Vice President Manufacturing --
GETRAG Transmissions Corporation, said.  "DCTs replace the
energy-sapping torque converters of conventional automatic
transmissions with two wet or lubricated clutches -- one that
engages first, third and fifth gear and the other that engages
second, fourth and sixth.  As a result, the transmission can
deliver a five to 10 percent improvement in fuel economy."

                          About GETRAG

Based in Untergruppenbach, Germany, GETRAG Corporate Group is an
independent automotive transmission manufacturer with 12,400
employees at 23 locations worldwide.  The Group develops
technical solutions for the automotive industry, featuring a
wide product range of transmission systems and powertrain
components for passenger cars, SUVs, motorbikes and light
commercial vehicles.

                      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.


DAIMLERCHRYSLER: Chrysler Group Eyes Sales & Dealer Expansion
-------------------------------------------------------------
As Chrysler Group continues to increase sales and expand
operations in markets outside North America, the company has
identified a need for additional sales outlets in key
established and growth markets.  This week, approximately 70
international investors and dealers are visiting the company's
headquarters in Auburn Hills for a sneak peek at the potential
for Chrysler, Jeep and Dodge brand franchises in their
respective markets.

"While we will continue to aggressively defend our position in
NAFTA, it is important that we expand in other markets so that
we are not as dependent on the ups and downs of a single
region," Tom LaSorda, President and CEO - Chrysler Group, said.
"With a more global focus we will be better able to take
advantage of emerging opportunities."

                    Dealer Investment Forum

The Chrysler Group has invited the potential partners from 19
countries all over the world, including Russia, Japan and the
Middle East.  During three days with senior Chrysler Group
executives, the investors will learn more about the different
avenues the company is pursuing to become a more global
operation as it implements the Recovery and Transformation Plan,
a roadmap for returning to financial health.  They will also
gain insight into the Chrysler Group's growth plans outside
North America and experience first-hand the unique products and
powertrains that would be available through their franchise if
they choose to invest.  This week's forum follows a conference
held in China where 140 dealers attended.

"Due to the expansion of our global portfolio, we see an
opportunity not only to strengthen the relationship with our
current dealers, but also to look for new business partners that
can help us to take our international business to the next
level," Michael Manley, Executive Vice President - International
Sales, Marketing and Business Development, said.

Outside North America, Chrysler Group has roughly 1,400 sales
outlets.  In established markets, like Western Europe, the
company plans to add roughly 100 new sales outlets over the next
two years.  Additional growth in the dealer network will
increase the company's presence in growing markets, such as
Russia and China, where the existing dealer network is doing
well, but the goals of additional sales growth will require
adding more locations.

The addition of these new outlets will increase customer
satisfaction, as well as contribute to increased sales.
Chrysler Group remains committed to ensuring a positive customer
experience with the product itself, and with the dealership for
both sales and service experiences.  Having the necessary number
of dealerships exposes more customers to the Chrysler, Jeep and
Dodge brands and also means that customers are able to visit a
facility in or near their community after purchasing the vehicle
for any necessary maintenance.

                Performance Outside North America

In 2006, Chrysler Group expanded the availability of the Dodge
brand in key markets all over the world with the launch of the
Dodge Caliber, the brand's first volume vehicle outside North
America.  The next two Dodge vehicles, making their way into
global markets this summer, are the Dodge Nitro and Avenger.
Demand for the Dodge brand has been strong so far this year as
Dodge Caliber sales soared to 13,265 units year-to-date, making
it the top-selling Chrysler Group vehicle outside North America.
By 2009, Dodge could account for roughly 30% of the company's
international sales.

"Many dealers outside North America have been very successful
with the sales of all three Chrysler Group brands in their local
markets," Thomas Hausch, Vice President of International Sales,
said.  "In Western Europe alone, we increased our return on
sales by more than 20%, from 1.7 in 2005 to 2.1 in 2006.  This
is a clear indication that the new vehicles we are introducing
are well-received by our customers and that we deliver to our
dealers one of the best return on sales within the industry."

Sales growth for Chrysler Group as a whole outside North America
has reached an unprecedented two full years of monthly sales
gains, and year-to-date growth of 16 percent (91,412 units) over
the same period of time in 2006.  Much of this growth is
attributed to the increase in the number of models that are
being introduced in markets all over the world with options that
meet the needs of global customers.  Chrysler Group management
has indicated that the plan is to double last year's sales
outside North America and reach approximately 400,000 units in
the next five years.

To support this growth plan, between 2003 and 2007, The Chrysler
Group will approximately double the number of products available
outside North America from nine to 20 vehicles.  Within the
number of models available, the company will triple the number
of vehicles in right-hand-drive, from six to 18; and, quadruple
the number of vehicles with an option for a diesel powertrain,
from four to 16.

Chrysler Group sells and services vehicles in more than 125
countries around the world.  Sales outside North America
currently account for approximately 8% of the company's total
global sales.  Vehicles available outside of North America come
from all three Chrysler Group brands, with limited availability
on some trucks and SUV models.

                      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 underthe 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.


DUERR AG: Moody's Lifts B2 Corp. Credit Rating Outlook to Stable
----------------------------------------------------------------
Moody's has upgraded the outlook for Duerr AG's corporate credit
rating from negative to stable.  Duerr AG's corporate credit
rating continues to stand at B2.

Duerr's steady improvements in operating performance over recent
months cued Moody's to upgrade the company's outlook, which also
reflects Moody's expectation that Duerr will record further
improvements not only in the operating performance, but also in
efficiency and that Duerr will retain an adequate liquidity
position.

The company reached all of its financial targets in fiscal 2006
and increased operating profit from EUR3.5 million to EUR39.1
million.  In the first quarter of 2007 the specialist for paint
shops and production technology continued its improved
performance: operating profit rose to EUR3.1 million after Duerr
had recorded a loss of EUR0.9 in the first quarter of 2006.

Duerr expects sales growth of between 5 and 10% and a further
significant earnings improvement in 2007.

                           About Duerr

Headquartered in Stuttgart, Germany, Duerr AG --
http://www.durr.com/en-- supplies products, systems, and
services for automobile manufacturing.   Its range of products
and services covers important stages of vehicle production.   As
a systems supplier, Duerr plans and builds complete paint shops
and final assembly facilities.   It also delivers cleaning and
filtration systems for the manufacture of engine and
transmission components as well as balancing systems.

The company has operations in Brazil, China and India.


REMY INT: Planned Chapter 11 Filing Cues S&P's Rating Downgrade
---------------------------------------------------------------
Standard & Poor's Ratings Services took several ratings actions
on Remy International Inc. following the company's announcement
that it has reached an agreement with the majority of its
unsecured debt holders to undertake a capital restructuring
through a prepackaged plan of reorganization.  The Anderson,
Indiana-based electrical components manufacturer is in the
process of obtaining debtor-in-possession financing and a US$330
million senior secured exit credit facility, which would be
effective upon execution of the reorganization plan.

Standard & Poor's lowered its rating on Remy's US$145 million
senior unsecured notes to 'D' from 'CC' because Remy elected to
not make the June 15, 2007, interest payment.  It is expected
that these creditors will have their claim exchanged for US$100
million of new third-lien payment-in-kind notes and about US$50
million in cash under the reorganization plan.  At the same
time, S&P lowered the rating on Remy's US$165 million senior
subordinated notes to 'D' from 'CC' because these notes are
expected to be converted into 100% of common equity of the
reorganized company.

S&P affirmed the 'CC' rating on Remy's US$125 million floating
secured second-priority notes, as these will be paid in full
under the reorganization plan.  In addition, S&P affirmed the
'CC' rating and '1' recovery rating on Remy's US$200 million
first-priority bank loan as these will be paid in full under the
plan.

In addition, if the reorganization plan is successfully
executed, S&P could revise its recovery rating to '1' from '4'
on Remy's US$125 million floating secured second-priority notes,
because under the plan Remy would repay this claim in full.

Standard & Poor's will withdraw all of its ratings upon approval
of the restructuring plan.  Remy expects that the plan will
incorporate payment to all trade creditors, suppliers,
customers, and employees in amounts owed to them in the ordinary
course of business.  All of the company's existing equity
interests will be cancelled in restructuring.

As a critical part of the restructuring, Remy indicates that it
is making substantial progress in renegotiating certain material
commercial agreements to improve margins.  The company's
attempts to stabilize and expand earnings in the past several
years through restructuring, the acquisition of Unit Parts Co.,
global procurement initiatives, leadership changes, and
operational enhancements failed to allow the company to avoid a
financial restructuring.

Remy has operations in the United Kingdom, Brazil and Korea.


TOWER AUTO: Cancels Auction Due to Absence of Competing Bids
------------------------------------------------------------
Tower Automotive Inc.'s marketing process approved by the U.S.
Bankruptcy Court for the Southern District of New York has
concluded, yet the Debtor did not receive any competing bids to
purchase the company.

As a result, the auction scheduled for June 25, 2007, in
conjunction with the Debtor's Chapter 11 Plan of Reorganization,
has been cancelled.

The Debtor will push through with its request with the
Bankruptcy Court to approve the sale agreement with TA
Acquisition Company, LLC, an affiliate of Cerberus Capital
Management, L.P.

The Court is scheduled to hear the Debtor's request to confirm
its Chapter 11 Plan and approve the sale on July 11, 2007.  If
successful, the Debtor expects to close the transaction by
July 31, 2007.

                    About Tower Automotive

Based in Grand Rapids, Michigan, Tower Automotive Inc. (OTC BB:
TWRAQ) -- http://www.towerautomotive.com/-- is a global
designer and producer of vehicle structural components and
assemblies used by every major automotive original equipment
manufacturer, including BMW, DaimlerChrysler, Fiat, Ford, GM,
Honda, Hyundai/Kia, Nissan, Toyota, Volkswagen and Volvo.
Products include body structures and assemblies, lower vehicle
frames and structures, chassis modules and systems, and
suspension components.  The company has operations in Korea,
Spain and Brazil.

The company and 25 of its debtor-affiliates filed voluntary
chapter 11 petitions on Feb. 2, 2005 (Bankr. S.D.N.Y. Case No.
05-10576 through 05-10601).  James H.M. Sprayregen, Esq., Ryan
B. Bennett, Esq., Anup Sathy, Esq., Jason D. Horwitz, Esq., and
Ross M. Kwasteniet, Esq., at Kirkland & Ellis, LLP, represent
the Debtors in their restructuring efforts.  Ira S. Dizengoff,
Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the
Official Committee of Unsecured Creditors.  When the Debtors
filed for protection from their creditors, they listed
US$787,948,000 in total assets and US$1,306,949,000 in total
debts.

On May 1, 2007, the Debtors filed their Chapter 11 Plan of
reorganization and Disclosure Statement explaining that plan.
On June 4, 2007, the Debtors submitted an Amended Plan and
Disclosure Statement.  The Court approved the adequacy if the
Amended Disclosure Statement on June 5, 2007.  The hearing to
consider confirmation of the Debtors' Amended Plan is set for
July 11, 2007.


UNITED AIRLINES: Hiring New Pilots to Meet Rise in Int'l Routes
---------------------------------------------------------------
United Airlines Inc. plans to begin hiring pilots later this
year, the first time it has done so since 2001, to accommodate
the airline's schedule, including an increase in the number of
international destinations it serves.

United plans to begin accepting applications for new flight
officer positions later this summer.  After participating in
United's industry-leading training program, new pilots are
expected to begin flying for the airline as early as December.

United expects to hire and train up to 100 pilots by the end of
the year depending on changes to the mandatory pilot retirement
age currently being considered by Congress.  The new pilots will
be in addition to the pilots that United will recall this year
as it completes the recall of those who have been on furlough.

"This is good news for our pilots, our employees, our customers
and our investors," Sean Donohue, Senior Vice President of
Flight Operations and Onboard Service, said.  "This enables us
to ensure the highest level of service for our customers, while
maintaining an efficient, flexible schedule."

"We look forward to welcoming our new colleagues to United,
where they will join a group of the world's most experienced,
most accomplished and best trained aviators," Captain Hank
Krakowski, Vice President of Flight Operations, noted.  "Our new
hiring process, which we have reviewed with our pilot union, and
which will include interviews by United line pilots, has been
developed to identify a strong, diverse group of applicants who
will go through extensive training and technical preparation at
the company's state-of-the-art Flight Training Center in
Denver."

United has developed a new online hiring process which includes
an online application screening followed by in-person
interviews.

                          About UAL Corp.

Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA)
-- http://www.united.com/-- is the holding company for United
Airlines, Inc.  United Airlines is the world's second largest
air carrier.  The airline flies to Brazil, Korea and Germany.

The company filed for chapter 11 protection on Dec. 9, 2002
(Bankr. N.D. Ill. Case No. 02-48191).  James H.M. Sprayregen,
Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and
Steven R. Kotarba, Esq., at Kirkland & Ellis, represented the
Debtors in their restructuring efforts.  Fruman Jacobson, Esq.,
at Sonnenschein Nath & Rosenthal LLP represented the Official
Committee of Unsecured Creditors before the Committee was
dissolved when the Debtors emerged from bankruptcy.  Judge
Wedoff confirmed the Debtors' Second Amended Plan on
Jan. 20, 2006.  The company emerged from bankruptcy protection
on Feb. 1, 2006.

At Dec. 31, 2006, the company's balance sheet showed total
assets of US$25,369,000,000 and total liabilities of
US$23,221,000,000.

                          *     *     *

As reported in the Troubled Company Reporter on May 3, 2007,
Fitch Ratings has affirmed the Issuer Default Ratings of UAL
Corp. and its principal operating subsidiary United Airlines
Inc. at B-.


PETROLEO BRASILEIRO: Investing US$10B To Revitalize Fields
----------------------------------------------------------
An official at Brazilian state-owned oil firm Petroleo
Brasileiro SA said during the Brazil Offshore conference that
the company will invest some US$10 billion over the next five
years to revitalize mature fields in the Campos basin, Business
News Americas reports.

Petroleo Brasileiro's Campos business manager Carlos Eugenio
Melro Silva da Ressurreicao told the press that with the
investment plan, the firm is aiming production of 562,000
barrels of oil equivalent per day from mature Campos fields by
2015.

Mr. Silva da Ressurreicao said that mature fields in the Campos
basin produce some 625,000 barrels of oil equivalent per day.
Without the development plan, the figure would drop to 296,000
barrels of oil equivalent per day in 2015, BNamericas notes.

BNamericas relates that the technology Petroleo Brasileiro will
use in the restoration of the fields differs for each area as
geological conditions vary.

"The revitalization plan, in terms of production, represents the
same as the P-50 and P-52 oil platforms combined," Mr.  Silva da
Ressurreicao told BNamericas.

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

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

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

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

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


WARNER MUSIC: To Develop Mobile Themes on QUALCOMM's uiOne(TM)
--------------------------------------------------------------
Warner Music Group and QUALCOMM Incorporated, a leading
developer and innovator of advanced wireless technologies and
mobile data solutions, disclosed that WMG is developing a series
of over-the-air, downloadable, artist-branded themes for mobile
phones, which feature popular WMG artists and are based on
QUALCOMM's uiOne(TM) offering.

WMG's artist themes will contain many features, including a
series of mobile skins that will allow fans to customize the
look and feel of their mobile phones.  In one file download,
QUALCOMM's uiOne technology also will allow WMG to offer fans
additional mobile products, such as ringtones, wallpapers, full-
track songs, games and more, from their favorite artists.  WMG's
themes are expected to be made available to wireless operators
that deploy uiOne.  QUALCOMM's uiOne offering provides the
wireless value chain with the means to advance the wireless
experience via rich, integrated and dynamic user interfaces that
can be updated over the air.

"uiOne is an important accomplishment in the evolution of mobile
personalization products," said George White, senior vice
president of strategy and product development, Warner Music
Group.  "Mobile themes using QUALCOMM's uiOne technology offer a
compelling music product that combines images, ringtones and
even video in a one file download structure.  Fans now have an
easy way to personalize the mobile handset to showcase content
from their favorite Warner Music artists.  We are excited to
work with our mobile operator partners to offer uiOne-based
themes as part of our ongoing commitment to expand the music-
based content our artists produce."

"QUALCOMM is thrilled to work with Warner Music, one of the
entertainment industry's marquee names," said Brian Dunphy,
senior director and head of brand and affinity relations for
QUALCOMM Internet Services.  "Warner Music's decision to create
themes for its artists validates not only the advantages of the
uiOne offering, but also the opportunity that exists across the
entire wireless marketplace to deliver a customized user
experience to mobile customers.  The uiOne offering provides an
avenue for promoting additional content to subscribers and
further driving wireless data use for content providers and
wireless service providers alike."

                          About QUALCOMM

Headquartered in San Diego, Calif., QUALCOMM Incorporated --
http://www.qualcomm.com/-- develops and delivers innovative
digital wireless communications products and services
based on CDMA and other advanced technologies.  QUALCOMM is
included in the S&P 500 Index and is a 2007 FORTUNE 500(R)
company traded on The Nasdaq Stock Market(R) under the ticker
symbol QCOM.

                  About Warner Music Group

Warner Music Group Corp. (NYSE: WMG) -- http://www.wmg.com/--
is a music company that operates through numerous international
affiliates and licensees in more than 50 countries.  Warner
Music maintains international operations in Argentina,
Australia, Brazil, Canada, Croatia, Denmark, France, Germany,
Greece, Hong Kong, Hungary, India, Ireland, Malaysia, Mexico,
Philippines, Thailand, and the United Kingdom, among others.

                        *     *     *

As reported in the Troubled Company Reporter-Europe on
June 8, 2007, while it is currently uncertain whether Warner
Music Group Corp. (Warner; IDR rated 'BB-' with a Stable Outlook
by Fitch) will make a competing bid for EMI Group Plc (EMI), any
theoretical bid for EMI would likely result in a Rating Watch
Negative for Warner's ratings and its subsidiaries, according to
Fitch Ratings.

On May 25, 2007, Standard & Poor's Ratings Services said that
its ratings on New York City-based Warner Music Group Corp.,
including its 'BB-' corporate credit rating, remain on
CreditWatch with negative implications, where they were
initially placed on Feb. 22, 2007, following the company's
statement that it was exploring a possible merger agreement with
EMI Group PLC (B+/Watch Neg/B).


ZIM CORPORATION: Raymond Chabot Raises Going Concern Doubt
----------------------------------------------------------
Raymond Chabot Grant Thornton LLP expressed substantial doubt
about ZIM Corporation's ability to continue as a going concern
after auditing the company's financial statements for the fiscal
years ended March 31, 2007, and 2006.  The auditing firm pointed
to the company's net loss and negative cash flows from
operations during each of the last five years.

The company incurred a US$1,936,187 net loss for the year ended
March 31, 2007, compared to a US$3,388,493 of net loss for the
same period in 2006.  Included in the net loss for the year
ended March 31, 2007 is a non-cash amount of US$972,209 relating
to the amortization of intangible assets acquired in the
purchase of Advanced Internet Services Inc.

Revenue for the year ended March 31, 2007 was US$2,195,184, a
decrease from US$3,595,315 in the prior year.  As previously
announced, ZIM's decrease in revenue is primarily attributable
to the decline in revenue from our SMS aggregation services as a
result of management's decision to no longer focus on this
market.

The company had cash of US$441,637 at March 31, 2007, as
compared to a cash balance of US$237,035 at March 31, 2006.  As
at March 31, 2007, ZIM also had an amount due to the chief
executive officer, who is also a shareholder, of US$43,305.

"Consistent with previous announcements, ZIM continued to
experience a decrease in SMS aggregation revenues however, we
continue to pursue opportunities related to our Internet TV and
Mobile Content platforms," said Dr. Michael Cowpland, President
and CEO of ZIM.

                    About ZIM Corporation

Ottawa, Canada-based ZIM Corporation (OTCBB: ZIMCF) --
http://www.zim.biz/ -- is a mobile entertainment and Internet
TV service provider.  Through its global infrastructure, ZIM
provides publishing and licensing services for market-leading
mobile content and for peer-to-peer Internet TV broadcasting.
The company has offices in Brazil and London.




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


ALTAIR NAVIGATOR: Sets Final Shareholders Meeting for June 29
-------------------------------------------------------------
Altair Navigator International Ltd. will hold its final
shareholders meeting on June 29, 2007, at 9:00 a.m., at the
office of the company.

These agendas will be taken during the meeting:

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

     2) authorizing the liquidator to retain the records
        of the company for a period of three years from
        the dissolution of the company, after which they
        may be destroyed.

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

The liquidators can be reached at:

        John Cullinane
        Derrie Boggess
        c/o Walkers SPV Limited
        Walker House
        87 Mary Street
        P.O. Box 908
        Grand Cayman KY1-9002
        Cayman Islands


AUSTRAL CAPITAL: Proofs of Claim Filing Is Until July 11
--------------------------------------------------------
Austral Capital International Ltd.'s creditors are given until
July 11, 2007, to prove their claims to Q&H Nominees Ltd., 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.

Austral Capital's shareholders agreed on May 24, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

         Q&H Nominees Ltd.
         Attention: Quin & Hampson (Ref: CSF)
         c/o P.O. Box 1348
         Grand Cayman KY1-1108
         Cayman Islands
         Telephone: (+1) 345 949 4123


AUSTRAL CAPITAL: Sets Final Shareholders Meeting for July 11
------------------------------------------------------------
Austral Capital International Ltd. will hold its final
shareholders meeting on July 11, 2007, at 10:30 a.m., at:

         Third Floor, Harbour Centre
         P.O. Box 1348, Grand Cayman KY1-1108
         Cayman Islands

These agendas will be taken during the meeting:

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

   2) requesting the members' approval of the liquidation fees
      incurred to date, approval of the liquidator's estimated
      costs to completion, and

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

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

The liquidator can be reached at:

         Q&H Nominees Ltd.
         Third Floor, Harbour Centre
         P.O. Box 1348
         Grand Cayman KY1-1108


PT BANK INTERNASIONAL: Cuts 2006 Dividend to IDR5.24 Per Share
--------------------------------------------------------------
PT Bank Internasional Indonesia disclosed that for the fiscal
year 2006, dividend will be IDR5.24, instead of IDR5.25 per
share.  The total 2006 dividend payout was announced on
May 22, 2007, Reuters reports.

                 About Bank Internasional

PT Bank Internasional Indonesia Tbk -- http://www.bii.co.id/--
engages in general banking services and in other banking
activities based on Syariah principles.  The bank's services are
divided into three categories: Personal Services, consisting of
Funding, Credit Card Services, Loan, Reksadana and
Bancassurance; Corporate Services, consisting of Funding, Credit
Card Services, Loan and Investment Banking, and Platinum
Services, consisting of Platinum Access, Syariah Platinum Access
and Platinum MasterCard.  The bank is headquartered in Jakarta,
Indonesia.

With a total customer deposit base of more than IDR34 trillion
and over IDR47 trillion in assets, Bank Internasional is one of
the largest banks in Indonesia with an international network
that comprises over 230 branches and 700 ATMs across Indonesia,
as well as a banking presence in Mauritius, Mumbai and the
Cayman Islands.

The Troubled Company Reporter - Asia Pacific reported on
May 8, 2007, that Moody's Investors Service published the rating
results for Bank Internasional Indonesia as part of the
application of its refined joint default analysis and updated
bank financial strength rating methodologies.  The specific
ratings changes are:

      * BFSR is changed to D from E+.

        -- This action also concludes a review for possible
           upgrade on the BFSR initiated on July 4, 2006.

      * Foreign Currency Deposit Ratings are unchanged at B2/Not
        Prime.

      * Foreign Currency Issuer Rating and Foreign Currency Debt
        Rating for subordinated obligations are unchanged at
        Ba3

        -- Foreign Currency Deposit and Foreign Currency Debt
           Ratings have positive outlooks in line with the
           outlook on the country's sovereign ratings outlook.

As reported on Feb. 1, 2007, Fitch Ratings affirmed all the
ratings of Bank Internasional as: Long-term foreign Issuer
Default rating 'BB-', Short-term rating 'B', National Long-term
rating 'AA-(idn)'; Individual 'C/D', and Support '4'.  The
outlook for the ratings was revised to positive from stable.


BANK OF AYUDHYA: Unit Implements Charles River Management System
----------------------------------------------------------------
Charles River Development has announced in a press release that
Ayudhya Fund Management Co., Ltd., has gone live on the Charles
River Investment Management System (Charles River IMS), the
Asian Banker reports.

Ayudhya Fund Management is a subsidiary of Thailand's Bank of
Ayudhya PCL.

According to the release, Ayudhya Fund Management has
implemented Charles River's scalable system to support its
portfolio management, electronic trading and compliance
operations for all asset classes, including: SWAPs and other
derivatives, options, foreign exchange, international fixed
income, as well as exotic securities and Thai-equity and -fixed
income products.

The implementation of Charles River IMS was part of a company-
wide initiative to significantly enhance Ayudhya Fund
Management's investment management operations as the company
strives to become the leading asset manager in Thailand.
Charles River IMS contributed to this initiative by
consolidating front- and -middle office operations on one
integrated platform and giving Ayudhya true order management
functionality. The system automates Ayudhya's portfolio
management and modeling operations, expands its electronic
trading with an embedded CameronFIX engine and full FIX4.4
support, and adds real-time compliance monitoring capabilities
throughout the trading cycle. Web services and real-time XML
messaging helps Ayudhya create unique money market reports,
including those for Thai Bhatnet settlement standards, and
simplifies the interface of Charles River IMS with Thai-focused
Bonanza software and other systems.

                      About Bank of Ayudhya

Headquartered in Bangkok, Thailand, Bank of Ayudhya Public Co.
Ltd. -- http://www.krungsri.com/-- provides a full range of
banking and financial services.  The bank offers corporate and
personal lending, retail and wholesale banking; international
trade financing asset management; and investment banking
services to customers through its branches.  It has branches in
Hong Kong, Vietnam, Laos, and the Cayman Islands.

                          *     *     *

On May 4, 2007, Moody's Investor Services affirmed its D- bank
financial strength rating for Bank of Ayudhya. The Foreign
Currency Deposit Ratings are unchanged at Baa3/P-3. The outlook
for all ratings is stable.

The Bank carries Standard and Poor's Rating Services' BBB-/A-3
Credit Rating with a stable outlook.

The Troubled Company Reporter - Asia Pacific reported on
June 7, 2007 that Fitch Ratings has affirmed Bank of Ayudhya
Public Company Limited's (BAY) Foreign Currency Issuer Default
Rating at 'BBB-' (BBB minus) with Stable Outlook, Short-term
Foreign Currency rating at 'F3', Individual rating at 'C/D',
Support rating at '3' and its subordinated debt rating at 'BB+'.

The bank's Support Rating Floor remains unchanged at 'BB'.
Meanwhile, Fitch Ratings (Thailand) has also affirmed BAY's
National Long-term Rating at 'A+(tha)' with Stable Outlook, its
National Short-term Rating at 'F1(tha)' and its National
subordinated debt rating at 'A(tha)'.


CITRINE SPECIAL: Sets Final Shareholders Meeting for June 29
------------------------------------------------------------
Citrine Special Opportunities Fund will hold its final
shareholders meeting on June 29, 2007, at 10:00 a.m., at the
office of the company.

These agendas will be taken during the meeting:

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

     2) authorizing the liquidator to retain the records
        of the company for a period of three years from
        the dissolution of the company, after which they
        may be destroyed.

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

The liquidators can be reached at:

        John Cullinane
        Derrie Boggess
        c/o Walkers SPV Limited
        Walker House
        87 Mary Street
        P.O. Box 908
        Grand Cayman KY1-9002
        Cayman Islands


COMMODITY RESOURCES: Final Shareholders Meeting Is on July 12
------------------------------------------------------------
Commodity Resources Ltd. will hold its final shareholders
meeting on July 12, 2007, at 10:00 a.m., at:

         Suite 31-03, 31st Floor
         203 Jalan Bukit, Menara Keck Seng
         55100, Kuala Lumpar

These agendas will be taken during the meeting:

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

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

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

The liquidator can be reached at:

         John David Dryden
         Attention: John David Dryden
         Corporate Filing Services Ltd.
         P.O. Box 613
         Grand Cayman KY1-1107
         Cayman Islands
         Telephone: +603 2142 3810
         Fax: +603 2142 1810


COOPERNEFF (CAYMAN): Final Shareholders Meeting Is on June 29
-------------------------------------------------------------
Cooperneff (Cayman) Ltd. will hold its final shareholders
meeting on June 29, 2007, at 10:30 a.m., at the office of the
company.

These agendas will be taken during the meeting:

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

     2) authorizing the liquidator to retain the records
        of the company for a period of three years from
        the dissolution of the company, after which they
        may be destroyed.

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

The liquidators can be reached at:

        John Cullinane
        Derrie Boggess
        c/o Walkers SPV Limited
        Walker House
        87 Mary Street
        P.O. Box 908
        Grand Cayman KY1-9002
        Cayman Islands


JORDAIR CO: Proofs of Claim Filing Deadline Is July 12
-----------------------------------------------------
Jordair Co.'s creditors are given until July 12, 2007, to prove
their claims to Phillip Hinds and Jan Neveril, the company's
liquidator, or be excluded from receiving any distribution or
payment.

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

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

The liquidator can be reached at:

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


JOSE CARTELLONE: Final Shareholders Meeting Is on June 29
---------------------------------------------------------
Jose Cartellone Caribbean Co. will hold its final shareholders
meeting on June 29, 2007, at 2:00 p.m., at the office of the
company.

These agendas will be taken during the meeting:

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

     2) authorizing the liquidator to retain the records
        of the company for a period of three years from
        the dissolution of the company, after which they
        may be destroyed.

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

The liquidator can be reached at:

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


KAZIMIR NON-DOLLAR: Sets Final Shareholders Meeting for June 29
--------------------------------------------------------------
Kazimir Non-Dollar Yield Fund Ltd. will hold its final
shareholders meeting on June 29, 2007, at 12:00 p.m., at the
company's offices.

These agendas will be taken during the meeting:

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

     2) authorizing the liquidator to retain the records
        of the company for a period of three years from
        the dissolution of the company, after which they
        may be destroyed.

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

The liquidators can be reached at:

        John Cullinane
        Derrie Boggess
        c/o Walkers SPV Limited
        Walker House, 87 Mary Street
        P.O. Box 908
        Grand Cayman KY1-9002
        Cayman Islands


KICAP NETWORK: Final Shareholders Meeting Is on July 12
-------------------------------------------------------
Kicap Network Fund Ltd. will hold its final shareholders meeting
on July 12, 2007, at:

         Queensgate House, George Town
         Grand Cayman, Cayman Islands

These agendas will be taken during the meeting:

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

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

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

The liquidator can be reached at:

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


MICROPORT MEDICAL: Proofs of Claim Must be Filed by July 12
-----------------------------------------------------------
Microport Medical (Cayman) Corp.'s creditors are given until
July 12, 2007, to prove their claims to Maxwell Zhaohua Chang,
the company's liquidator, or be excluded from
receiving any distribution or payment.

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

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

The liquidators can be reached at:

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


MINCS-GLACE: Proofs of Claim Filing Is Until July 12
----------------------------------------------------
Mincs-Glace Bay Ltd.'s creditors are given until July 12, 2007,
to prove their claims to Phillip Hinds and Jan Neveril, the
company's liquidator, or be excluded from receiving any
distribution or payment.

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

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

The liquidator can be reached at:

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


MW STRAND: Sets Final Shareholders Meeting for June 29
------------------------------------------------------
MW Strand Fund will hold its final shareholders meeting on
June 29, 2007, at 11:00 a.m., at the office of the company.

These agendas will be taken during the meeting:

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

     2) authorizing the liquidator to retain the records
        of the company for a period of three years from
        the dissolution of the company, after which they
        may be destroyed.

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

The liquidators can be reached at:

        John Cullinane
        Derrie Boggess
        c/o Walkers SPV Limited
        Walker House
        87 Mary Street
        P.O. Box 908
        Grand Cayman KY1-9002
        Cayman Islands
        Fax: (+1) 345 949 4647


NEEDHAM EMERGING: Holding Final Shareholders Meeting on July 13
--------------------------------------------------------------
Needham Emerging Growth International Ltd. will hold its final
shareholders meeting on July 13, 2007, at 9:30 a.m., at the
office of the company.

These agendas will be taken during the meeting:

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

     2) authorizing the liquidator to retain the records
        of the company for a period of three years from
        the dissolution of the company, after which they
        may be destroyed.

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

The liquidators can be reached at:

         John Cullinane
         Derrie Boggess
         c/o Walkers SPV Limited
         Walker House
         87 Mary Street, George Town
         Grand Cayman KY1 9002
         Cayman Islands


NOTES FUNDING: Proofs of Claim Must be Filed by July 12
------------------------------------------------------
Notes Funding Corp.'s creditors are given until July 12, 2007,
to prove their claims to Andrew Millar and Richard Gordon, the
company's liquidator, or be excluded from receiving any
distribution or payment.

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

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

The liquidator can be reached at:

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


RYMBOURNE CAYMAN: Sets Final Shareholders Meeting for July 13
------------------------------------------------------------
Rymbourne Cayman Ltd. will hold its final shareholders meeting
on July 13, 2007, at 10:00 a.m., at:

         5th Floor, Zephyr House
         Mary Street, Grand Cayman
         Cayman Islands

These agendas will be taken during the meeting:

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

     2) authorizing the liquidator to retain the records
        of the company for a period of three years from
        the dissolution of the company, after which they
        may be destroyed.

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

The liquidator can be reached at:

         Glen Trenouth
         Attention: Glen Trenouth
         Telephone: (345) 943 8800
         Fax: (345) 943 8801
         P.O. Box 31118
         Grand Cayman KY1-1205
         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


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


STIR FUND: Sets Final Shareholders Meeting for June 29
------------------------------------------------------
The Stir Fund Ltd. will hold its final shareholders meeting on
June 29, 2007, at 9:30 a.m., at the office of the company.

These agendas will be taken during the meeting:

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

     2) authorizing the liquidator to retain the records
        of the company for a period of three years from
        the dissolution of the company, after which they
        may be destroyed.

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

The liquidators can be reached at:

        John Cullinane
        Derrie Boggess
        c/o Walkers SPV Limited
        Walker House
        87 Mary Street
        P.O. Box 908
        Grand Cayman KY1-9002
        Cayman Islands


THUNDER BAY: Holding Final Shareholders Meeting on June 29
----------------------------------------------------------
Thunder Bay Al-Hudda Fund Ltd. will hold its final shareholders
meeting on June 29, 2007, at 11:30 a.m., at the office of the
company.

These agendas will be taken during the meeting:

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

     2) authorizing the liquidator to retain the records
        of the company for a period of three years from
        the dissolution of the company, after which they
        may be destroyed.

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

The liquidators can be reached at:

        John Cullinane
        Derrie Boggess
        c/o Walkers SPV Limited
        Walker House
        87 Mary Street
        P.O. Box 908
        Grand Cayman KY1-9002
        Cayman Islands




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


ECOPETROL: Will Launch Initial Public Offering on Aug. 27
---------------------------------------------------------
Colombian state-owned oil company Ecopetrol confirmed to news
daily Primera Pagina that it will launch the first stage of its
initial public offering on Aug. 27.

According to Primera Pagina, the first two issues will be
focused on the "solidarity sector," which consists of pension
funds, unions and cooperatives.  Private individuals can
participate in the issues, but won't be able to invest over COP2
billion.

Primera Pagina notes that corporate entities can participate in
the third issue of shares in 2008.  However, no firm can acquire
over 3% of the shares in circulation.

Business News Americas relates that "the first three rounds will
be denominated in pesos and sold on national exchanges."

Primera Pagina says that if all shares aren't sold, Ecopetrol
will launch a fourth round in the second quarter 2008 in New
York.  Shares will be sold in dollars.

Ecopetrol wants to sell up to 20% of its shares.  Investment
banks are determining the firm's value, BNamericas states.

Ecopetrol is an integrated-oil company that is wholly owned by
the Colombian government.  The company's activities include
exploration for and production of crude oil and natural gas, as
well as refining, transportation, and marketing of crude oil,
natural gas and refined products.  Ecopetrol is Latin America's
fourth-largest integrated-oil concern.  Operations are organized
into Exploration & Production, Refining & Marketing,
Transportation, and International Commerce & Gas.

                        *     *     *

On June 27, 2006, Fitch Ratings revised the rating outlook of
the BB long-term foreign currency issuer default rating of
Ecopetrol SA to Positive from Stable.  This rating action
follows the recent revision in the Rating Outlook to Positive
from Stable of the 'BB' foreign currency IDR of the Republic of
Colombia.  Ecopetrol's IDR remain strongly linked with the
credit profile of the Republic of Colombia.


* COLOMBIA: Fitch Upgrades Foreign Currency Rating to BB+
---------------------------------------------------------
Fitch Ratings upgraded Colombia's foreign currency sovereign
Issuer Default Rating to 'BB+' from 'BB' and affirmed the local
currency IDR at 'BBB-'.  The Rating Outlook is Stable.  At the
same time, Fitch upgraded Colombia's county ceiling to
'BBB-' from 'BB+', and affirmed the short-term IDR at 'B'.

The rating upgrade reflects Colombia's much-improved debt
dynamics underpinned by higher economic growth, disciplined
fiscal policies and deft liability management.  In addition,
strong GDP and current external receipts growth has also led to
a decline in the country's external debt burden, while higher
foreign direct investment flows have allowed a better financing
of the country's current account deficits.

Fiscal balances have continued to improve steadily, with central
government deficit expected to decline to 3.5% of GDP in 2007
from 6.1% of GDP in 2002.  Colombia's general government debt
burden declined to 47% of GDP in 2006 from 56% in 2002, although
it remains heavier than the 'BB' median of 40% of GDP.  Even so,
Fitch believes that the country's impeccable debt service record
implies that the country has a considerably higher 'debt
tolerance' and thus can sustain higher levels of debt.
'Although cyclical factors have improved fiscal outturns in
recent years, past tax reforms, improved tax administration, as
well as reforms catered toward reducing budgetary rigidities
also benefited Colombia's fiscal performance, said Shelly
Shetty, Senior Director in Fitch's Sovereign Group.  The recent
passage of the regional transfers reform that extends caps on
the central government transfers to the regional government
reinforces the government's commitment to maintaining prudent
fiscal policies.  Without such a reform, the burden on the
central government finances could have increased by 1%-2% of GDP
after 2009.

Finally, Colombia's enhanced growth outlook gives greater
confidence that the above-mentioned improvements could be
sustained in the coming years.  GDP growth reached nearly 7% in
2006 and is expected to remain around 5% over the next two
years.  The strong recovery in investment increased the
investment-to-GDP ratio to 24% in 2006 compared to a nadir of
13% in 1999, increasing the likelihood of sustaining higher GDP
growth.  "We believe that the 'security dividend' in Colombia is
the main driving force behind the country's improving business
climate and higher GDP growth," said Shetty.

In the short term, Fitch remains concerned about the modest
overheating of the economy, evident from higher inflation, rapid
credit growth, as well as the deterioration of the country's
external accounts.  However, it appears that BanRep (Colombia's
central bank) may be able to engineer a soft landing for the
Colombian economy, as it has been proactively using all the
instruments at its disposal to contain the growth in aggregate
demand and domestic credit, such as raising interest rates and
increasing reserve requirements on banks.

In the medium term, Fitch believes that owing to the
considerable budgetary rigidities, sustaining high growth will
be important for improving public finances and reducing
government debt to levels consistent with its peers.  While the
recent passage of the regional transfers' reform was an
important victory for the government, there was no provision
that would limit the growth of the regional transfers if GDP
growth falls below trend growth in any given year, making public
finances vulnerable to an economic slowdown.

In Fitch's opinion, sustained improvement in Colombia's external
and fiscal solvency ratios would be positive for its
creditworthiness.  Higher GDP and CXR growth are necessary for
external solvency ratios to converge to the 'BBB' median levels.
In this regard, the passage of a free trade agreement with the
U.S. guaranteeing permanent market access to that market could
further bolster the attractiveness of Colombia to foreign
investors and help in boosting its FDI and growth prospects.




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


PETROECUADOR: Gets Favorabale Ruling in Chevron Lawsuit
-------------------------------------------------------
The U.S. District Court in the Southern District of New York has
ruled in favor of Petroecuador in an environmental clean-up
lawsuit filed by Chevron Corp., Dow Jones Newswires reports.

Dow Jones relates that the lawsuit was on whether Chevron or
Ecuador should pay for any eventual environmental clean-up in
the Amazon.  The tribes living in that region claimed that
Chevron's oil drilling had damaged the land 10 years before.

The report says that the "liability issue" wasn't resolved yet.
But the court's recent ruling was a "setback" for Chevron.

Judge Leonard Sand granted the request of Ecuador and
Petroecuador for a permanent injunction of proceedings at the
American Arbitration Association.

The court's ruling "hinged on whether an Ecuadorean court would
find a 1965 joint operating agreement binding on Petroecuador,"
Dow Jones notes.  Gulf Oil Co. signed the accord with Texaco in
Florida.  Compania Estatal Petrolera Ecuatoriana, Petroecuador's
predecessor, took over Gulf Oil's ownership interest in the
joint venture in 1974 but didn't sign the 1965 accord.  Three
years later, CEPE purchased all of Gulf Oil's stake.  Texaco and
Petroecuador ran the oilfields between 1977 and 1991.  The 1965
pact contained an arbitration provision.  Subsequent documents
like the government decree that had CEPE take over Gulf Oil's
ownership interest lacked arbitration clauses.

According to the report, Chevron argued that because
Petroecuador benefited from the 1965 joint operating accord, the
firm was an "implicit party and thus bound to the terms of the
agreement."

However, the court agreed with "Ecuador's contention that local
law wouldn't bind Petroecuador" to the 1965 pact, the basis for
the judge's decision to stop the arbitration proceedings.

Dow Jones notes that Judge Sand said, "Even in Chevron's best-
case scenario, it still cannot show that under (Ecuadorean) law
CEPE or Petroecuador would have the JOA enforced against it
because there would be a lack of any reasonable expectation by
Chevron that the JOA had continuing validity."

Chevron admitted in a statement that it was disappointed in the
decision.  However, the firm said it is positive that
Petroecuador and Ecuador "will be compelled to fulfill their
obligations" to "indemnify" Chevron for any costs resulting from
the litigation in Ecuador and "to step up to their
responsibility for any and all environmental issues" in the
former concession areas.

The report says that the "litigation in Ecuador refers to a May
2003 lawsuit" several indigenous groups filed against Texaco
Petroleum Co. in Lago Agrio, Ecuador.  The case has not yet
ended.  Texaco left Ecuador in 1992 and merged with Chevron in
2001.

Chevron told Dow Jones that it was considering to file an
appeal.

According to Dow Jones, Chevron launched arbitration proceedings
against Ecuador in June 2004. The government then filed a lawuit
against the firm in October 2004 in the New York Supreme Court
to stop the arbitration.  The case was moved to the Southern
District of New York.

Chevron said in a statement that the court didn't rule on its
counterclaim against Ecuador, which focuses on a 1995 settlement
between US firm and Petroecuador, when Texaco acquiesced to
conduct environmental clean-up in exchange for a release of
claims by Ecuador and Petroecuador.

Chevron told Dow Jones that the Ecuadorean government released
the firm from any liabilities regarding clean-up efforts in
1998.

Dow Jones relates that the court said it is giving Chevron and
Ecuador 60 days to consider "their posture and confer with each
other on the counterclaim issue."  Then they will inform the
court what further proceedings, if any, they plan to pursue
before the court.

Eric Bloom of Winston & Strawn LLP, the legal counsel for
Ecuador, told Dow Jones, "We'll take our time evaluating" the
issue of the counterclaim."

The attorney for the Ecuadorean government can be reached at:

          Eric Bloom
          Winston & Strawn LLP
          200 Park Avenue
          New York, New York 10166-4193
          USA
          Phone: (212) 294-6700

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


* ECUADOR: Will Join OPEC, Says Abdullah Al-Badri
-------------------------------------------------
The Organization of Petroleum Exporting Countries' Secretary-
General Abdullah Al-Badri told Agence France-Presse that he
expected Ecuador to join the organization soon after the nation
asked to become a member.

Mr. Al-Badri commented to AFP, "We received an official letter
from Ecuador last week [two weeks ago].  I am expecting Ecuador
will be a member of OPEC in the near future."

The member states will still decide on the matter in September
2007, AFP says, citing Mr. Al-Badri.

According to AFP, Ecuador used to be part of OPEC from 1973 to
1992.  If it reenters OPEC, it would be the group's 13th member,
alongside:

          -- Algeria,
          -- Angola,
          -- Indonesia,
          -- Iran,
          -- Iraq,
          -- Kuwait,
          -- Libya,
          -- Nigeria,
          -- Qatar,
          -- Saudi Arabia,
          -- the United Arab Emirates, and
          -- Venezuela.

                        *     *     *

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-'.


* ECUADOR: Holding Off Bank of the South Launching
--------------------------------------------------
Venezuela, along with five Latin American governments, has
postponed the execution of an agreement to establish a regional
bank that would compete with the International Monetary Fund and
the World Bank.

The Bank of the South was previously set for launching on
June 26, with each member-country contributing equally to its
capital base.

Ecuadorian Ministry of Economy told AFP that no new date has
been set.

"In principle, the agreement was to be initialed on June 26th.
However, it seems that some countries failed to come to terms
and the execution will be delayed for some additional days," an
unnamed source was quoted by El Universal as saying.

The proposed bank's board will be comprised of heads of state of
Argentina, Bolivia, Brazil, Ecuador, Paraguay, and Venezuela.

The bank, advocated by Venezuelan President Hugo Chavez, will be
established to rival the services offered by the IMF and the
World Bank, on much lower rates and better financing conditions.

As previously reported, Brazilian Finance Minister Guido Mantega
said that founding members' contributions would range between
US$500 million to US$300 million.

                       *     *     *

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-'.




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


BRITISH AIRWAYS: S&P Lifts Corp. Credit Rating to BBB- from BB+
---------------------------------------------------------------
Standard & Poor's Ratings Services has raised its long-term
corporate credit rating on British Airways PLC to 'BBB-' from
'BB+', propelling the U.K. airline to investment-grade status.
The outlook is stable.

"The upgrade follows BA's good progress in strengthening its
financial profile and our expectations of improving operational
performance," said Standard & Poor's credit analyst Leigh
Bailey.

At the same time, Standard & Poor's raised its long-term rating
on BA's senior unsecured debt to 'BB+' from 'BB-'. This two-
notch upgrade reflects Standard & Poor's criteria according to
which a one-notch rating differential is the maximum allowed for
the notching-down of unsecured debt with respect to priority
liabilities of investment-grade issuers, compared with two
notches at the speculative-grade level.

All ratings were removed from CreditWatch, where they were
placed with positive implications on Jan. 9, 2007.

"The upgrade reflects the positive implications for BA's capital
structure, future cash flows, and business operations of the
proposed pension deficit solution and the debt reduction
achieved in recent years. This should enable the group to
maintain credit metrics consistent with an investment-grade
rating," said Mr. Bailey.

Despite a challenging trading environment, Standard & Poor's
expects the structural cost savings achieved and the benefits of
the transfer of BA's operations to the new terminal 5 at London
Heathrow Airport to help maintain BA's profitability and provide
support for its financial profile.

At March 31, 2007, BA reported GBP3.3 billion (EUR4.9 billion)
of total on-balance-sheet financial debt.

The rating reflects BA's strong competitive position as the main
airline at Heathrow, above-industry-average operating margins,
and moderate financial policy.  It is constrained, however, by
the cyclical nature of the airline industry, BA's profit
concentration in its transatlantic network, and the likelihood
that the "Open Skies" agreement will increase competition on
these long-haul routes.  The impact on BA of the EU-U.S. "Open
Skies" agreement, which will come into force in March 2008, will
be negative, although to what degree is still uncertain.  At
this stage, we do not believe that the easing of regulatory
restrictions on transatlantic routes will lead to a level of
profit erosion that is sufficient to threaten the group's
financial profile at the current rating level.

"We believe that a satisfactory revenue environment -- bolstered
by demand for premium long-haul services -- and tight cost
control should enable the group to improve operating performance
and maintain credit ratios in line with our expectations," said
Mr. Bailey.

The industry environment remains challenging, characterized by
high fuel prices and growing competition, which limits the
likelihood of a revision of the outlook to positive in the near
term.  The ongoing competition investigations into long-haul
passenger and cargo fuel surcharges are also a negative factor,
since the final outcome is uncertain.  We expect BA to
maintain FFO to adjusted debt of about 30% and adjusted debt to
capital within 60%-65%.  A slowdown in demand or significant
acquisition activity, resulting in weakened credit metrics,
could lead to downward pressure on the ratings.

British Airways has offices in India and Guatemala.


BRITISH AIRWAYS: Confident on Future Growth After Rating Upgrade
----------------------------------------------------------------
British Airways plc has been advised by the credit rating
agency, Standard and Poor's that its corporate credit rating is
to be increased to investment grade.

The company was downgraded to sub-investment grade or junk
status in July 2003 following the events of Sept. 11, 2001, and
the war in Iraq.

During that period the company has reduced its net debt from
GBP6.6 billion to GBP990 million and steadily increased its
operating margin.

"We have worked hard over the last four years strengthening the
foundations of our business.  Regaining investment grade status
will enable us to invest in our future growth with confidence,"
British Airways CFO Keith Williams said.

Headquartered in West Drayton, United Kingdom, British Airways
Plc -- http://www.ba.com/-- operates international and
domestic scheduled and charter air services for the carriage of
passengers, freight and mail, and provides ancillary
services.  The British Airways group consists of British Airways
Plc and a number of subsidiary companies including in particular
British Airways Holidays Ltd. and British Airways Travel
Shops Ltd.  BA has offices in India and Guatemala.

                        *     *     *

In April 2007, in connection with the implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the existing non-financial speculative-grade
corporate issuers in Europe, Middle East and Africa, Moody's
Investors Service's confirmed its Ba1 Corporate Family Rating
for British Airways Plc.

Moody's also assigned a Ba1 Probability-of-Default Rating to the
company.

* Issuer: British Airways Plc

                                                      Projected
                                 Debt     LGD      Loss-iven
   Debt Issue                    Rating   Rating   Default
   ----------                    -------  ------   ----------
   GBP100-million 10.875%
   Sr. Unsec. Regular
   Bond/Debenture
   Due 2008                       Ba2      LGD5     84%

   GBP250-million 7.25%
   Sr. Unsec. Regular
   Bond/Debenture
   Due 2016                       Ba2      LGD5     84%




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


DIGICEL LTD: Unit Will Deploy Sales Kiosks in Courts Jamaica
------------------------------------------------------------
Digicel Ltd.'s Jamaican unit will be installing sales kiosks in
three of Courts Jamaica's stores, The Jamaica Gleaner reports.

According to The Gleaner, Digicel Jamaica signed a partnership
accord with Courts Jamaica two weeks ago for the sale of Digicel
products in the stores.

Digicel Chief Executive Officer David Hall commented to The
Gleaner, "With both brands having such strong presence in the
market, we anticipate that the partnership will do much to
reward our loyal customers, as well as attract new ones."

The deal with Digicel Jamaica didn't have monetary component,
The Gleaner says, citing Courts Jamaica.

The Gleaner notes that Digicel Jamaica and Courts Jamaica hope
to tap business from the other's customers.

The report says that Digicel Jamaica will set up sales points at
these stores of Court Jamaica:

          -- Cross Roads branch,
          -- King Street branch, and
          -- Barnett Street branch.

Courts Jamaica told The Gleaner, "The other 26 stores [of the
firm] will be heavily branded by Digicel in designated sections
of the store."

According to the report, Digicel products have been available to
Courts Jamaica's clients since April 1, 2007, and the new
contract extends that partnership.

Courts Jamaica's managing director Hayden Singh commented to The
Gleaner, "This is another exciting opportunity for Courts and
Digicel to continue providing customers with the highest quality
products at competitive prices.  Only this time, we will do it
together, making it doubly worthwhile for our customers."

Courts Jamaica used to have a contract with Cable & Wireless
Jamaica, The Gleaner states.

Digicel Ltd. is a wireless services provider in the Caribbean
region founded in 2000, and controlled by Denis O'Brien.  The
company started 0operations in Jamaica in April 2001 and now
offers GSM mobile services in Caribbean countries including
Jamaica, St. Lucia, St. Vincent, Aruba, Grenada, Barbados,
Bermuda, Cayman, and Curacao among others.  Digicel finished
FY2005 with 1.722 million total subscribers -- 97% pre-paid --
estimated market share of 67% and revenues and EBITDA of US$478
million and US$155 million, respectively.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 20, 2007, Fitch Ratings took these rating actions for
Digicel Group Ltd., Digicel Ltd. and Digicel International
Finance Ltd.:

Digicel Group Ltd.

   -- Proposed US$1.4 billion senior subordinated notes
      due 2015 assigned 'CCC+/RR5'

Digicel Ltd.

   -- Foreign currency Issuer Default Rating downgraded
      to 'B-' from 'B'; and

   -- US$450 million senior notes due 2012 downgraded
      to 'B-/RR4' from'B/RR4'.

Digicel International Finance Ltd.

   --US$850 million senior secured credit facility
     assigned 'B/RR3'.

Fitch said the outlook on all ratings was stable.




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


AMERICAN GREETINGS: Earns US$30 Million in Quarter Ended May 25
---------------------------------------------------------------
American Greetings Corporation reported US$30 million of net
income for the three months ended May 25, 2007, compared to
US$15.3 million of net income for the three months ended
May 26, 2006.

For the first quarter of fiscal 2008, the company recorded net
sales of US$418.0 million, pre-tax income from continuing
operations of US$54.9 million, and income from continuing
operations of US$30.6 million or 55 cents per share (all per-
share amounts assume dilution).  For the first quarter of fiscal
2007, the Company reported net sales of US$404.2 million, pre-
tax income from continuing operations of US$19.4 million, and
income from continuing operations of US$16.6 million or 26 cents
per share.

Chief Executive Officer Zev Weiss said, "I am pleased with our
performance this quarter as it was ahead of our expectations.
We had improved performance of everyday cards within North
America.  Our first quarter results suggest that the improved
performance is the result of the actions we have taken over the
past year."

Mr. Weiss also reaffirmed the Corporation's previously announced
estimate of earnings per share from continuing operations to be
between US$1.35 to US$1.55 per share.  "While I am happy with
our first quarter results, it is still early in the year and as
such, we remain comfortable with our earnings guidance for the
full year," added Mr. Weiss.

                       Financing Activities

The company purchased 135,000 shares of its common stock, under
its US$100 million share repurchase program, for US$3.4 million
during the first quarter of fiscal 2008.  Since February 2005,
the company has repurchased 21.5 million of its shares for
approximately US$500 million.

The company's Board of Directors is scheduled to meet June 22,
2007 at which time it will review the Company's quarterly cash
dividend.  The Board of Directors is expected to maintain the
Company's dividend policy.  After the Board has met, a press
release will be issued regarding the status of the dividend.

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.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 18, 2007, Moody's Investors Service affirmed American
Greetings Corporation's Ba1 corporate family rating, but revised
its ratings outlook to stable from negative.


CHEMTURA CORP: Will Kuser Quits as Investor Relations Director
--------------------------------------------------------------
Chemtura Corporation disclosed that its director of Investor
Relations, William Kuser, has advised the company that he will
be leaving at the end of June to pursue an opportunity with
American Vanguard Corporation, a California-based publicly
traded crop protection company.

"We appreciate Bill's contributions to Chemtura and its
investors and wish him every success in his new endeavors," said
Robert L. Wood, chairman and CEO.

In the interim period, Stephen Forsyth, executive vice president
and CFO, will take direct responsibility for the company's
Investor Relations activities.  Investors should contact Shirley
Cronan at (203) 573-3863.  Media will still contact Mary Ann
Dunnell at (203) 573-3034.

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

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
May 18, 2007, Moody's Investors Service lowered Chemtura
Corporation's ratings:

   -- Corporate Family Rating: Ba2 from Ba1

   -- Senior notes, US$500 million due 2016: Ba2 from Ba1;
      LGD4 (53%)

   -- Senior Unsecured Notes, US$150 million due 2026: Ba2 from
      Ba1; LGD4 (53%)

   -- Senior Unsecured Notes, US$400 million due 2009: Ba2 from
      Ba1; LGD4 (53%)


CHURCH & DWIGHT: Strong Performance Cues S&P to Revise Outlook
--------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on
Princeton, N.J.-based Church & Dwight Co. Inc. to positive from
stable.

"The revised outlook is based on the company's continued strong
operating performance and improved financial profile," said
Standard & Poor's credit analyst Patrick Jeffrey.  Church &
Dwight has reduced debt leverage to below 3x from the mid-3x
area following its acquisition of Orange Glo International in
August 2006.  "While the company may make future debt-financed
acquisitions to support its growth strategy, we expect debt
leverage will be managed on average in the low-3x area," said
Mr. Jeffrey.  The ratings could be raised over the near term if
the company continues to demonstrate operating stability
and a financial policy consistent with a higher rating.

At the same time, Standard & Poor's affirmed all of its existing
ratings on the company, including the 'BB' corporate credit
rating.  This rating reflects the company's participation in the
highly competitive personal care segment of the consumer
products industry, its lack of geographic diversity,
and its somewhat aggressive acquisition strategy.  This is
mitigated to an extent by its established consumer brands,
stable operating performance, good free cash flow generation,
and moderately leveraged balance sheet.

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

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


FEDERAL-MOGUL: Court Extends Confirmation Hearing to July 9 & 10
----------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware extended,
until July 9 and July 10, 2007, the hearing for the confirmation
of Federal-Mogul Corp. and its debtor-affiliates' plan of
reorganization, Cooper Industries, Ltd. disclosed.

In 1998, Cooper sold its Automotive Products business, including
its Abex Friction Products business, to Federal-Mogul.  As part
of the transaction, Cooper was indemnified for liabilities
related to the divested business, pursuant to a Purchase and
Sale Agreement. On Oct. 1, 2001, Federal-Mogul and several of
its affiliates filed a Chapter 11 bankruptcy petition and
indicated that Federal-Mogul may not honor its indemnity
obligations to Cooper, including its obligations for claims
related to the Abex Friction Products business.

The Federal-Mogul bankruptcy plan incorporates the settlement
reached by Cooper, Federal-Mogul and other parties to the
bankruptcy proceeding to resolve Cooper's liabilities for the
Abex Friction Products business, including the Abex asbestos-
related claims.

                    About Cooper Industries

Cooper Industries, Ltd. -- http://www.cooperindustries.com/--
is a global manufacturer with 2006 revenues of US$5.2 billion,
approximately 85 percent of which are from electrical products.
Incorporated in Bermuda with administrative headquarters in
Houston, Cooper employs approximately 31,000 people and operates
eight divisions: Cooper B-Line, Cooper Bussmann, Cooper Crouse-
Hinds, Cooper Lighting, Cooper Menvier, Cooper Power Systems,
Cooper Wiring Devices and Cooper Tools Group.  Cooper Connection
provides a common marketing and selling platform for Cooper's
sales to electrical distributors.

                      About Federal-Mogul

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

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

On March 7, 2003, the Debtors filed their Joint Chapter 11 Plan.
They submitted a Disclosure Statement explaining that plan on
April 21, 2003.  They submitted several amendments and on
June 6, 2004, the Bankruptcy Court approved the Third Amended
Disclosure Statement for their Third Amended Plan.  On
July 28, 2004, the District Court approved the Disclosure
Statement.  The estimation hearing began on June 14, 2005.  They
then submitted a Fourth Amended Plan and Disclosure Statement on
Nov. 21, 2006, and the Bankruptcy Court approved that Disclosure
Statement on Feb. 6, 2007.


ICONIX BRAND: Closes US$287.5-Mln Convertible Sr. Notes Offering
----------------------------------------------------------------
Iconix Brand Group Inc. has closed its offering of US$287.5
million aggregate principal amount of 1.875% Convertible Senior
Subordinated Notes due 2012, in an offering pursuant to Rule
144A under the Securities Act of 1933, as amended.

The company had priced its US$250 million aggregate principal
amount of the Notes, subsequent to which, in connection with the
closing, the initial purchasers exercised in full their option
to acquire an additional US$37.5 million of the Notes to cover
over-allotments.

The net proceeds to Iconix from the offering were approximately
US$280 million, after deducting the initial purchasers'
discounts and estimated offering expenses.

Iconix used approximately US$38.8 million of the net proceeds to
fund the net cost of convertible note hedge and warrant
transactions that it entered into with affiliates of the initial
purchasers.  These transactions are intended to offset Iconix'
exposure to potential dilution upon conversion of the Notes by
increasing the effective conversion price to Iconix from
US$27.56 to US$42.40 and the effective conversion premium from
30% to 100%, based on the last reported sale price of Iconix
stock of US$21.20 per share on the NASDAQ Global Select Market
on June 14, 2007.

Iconix plans to use the remaining net proceeds from the note
offering to invest in or acquire new brands through mergers,
stock or asset purchases and/or other strategic relationships,
although it has no present commitments or agreements with
respect to any such investment or acquisition, and for general
corporate purposes.

                         About Iconix Brand

Based in New York, NY, Iconix Brand Group, Inc. owns, licenses
and markets a portfolio of consumer brands including
CANDIE'S(R), BONGO(R), BADGLEY MISCHKA(R), JOE BOXER(R),
RAMPAGE(R), MUDD(R), LONDON FOG(R), MOSSIMO(R), OCEAN
PACIFIC(R), DANSKIN(R) and ROCAWEAR(R).  The group has
international licensees in Mexico, Japan and the United Kingdom.

                           *     *     *

The Troubled Company Reporter reported on June 20, 2007, that
Standard & Poor's Ratings Services revised its ratings outlook
on apparel brand manager and licensor Iconix Brand Group Inc. to
negative.  At the same time, Standard & Poor's assigned its 'B-'
debt rating to Iconix's proposed US$250 million convertible
senior subordinated notes due 2012.  The notes are being offered
pursuant to Rule 144A with registration rights under the
Securities Act of 1933.

As reported in the Troubled Company Reporter on June 18, 2007,
Moody's Investors Service affirmed Iconix Brand Group Inc.'s
corporate family rating at B1 and assigned a B3 rating to the
company's proposed US$250 million convertible senior
subordinated note offering.


VISTEON CORP: Construction Starts at New Missouri Assembly Plant
----------------------------------------------------------------
Visteon Corporation has begun building a manufacturing and
assembly facility in Eureka, Missouri, to support new business
in North America with automakers including Chrysler Group.  The
plant is expected to begin production in the summer of 2008 and
employ about 200 people by early 2009.

Visteon officially launched the project on June 20, 2007, in a
ceremony at the plant site in Eureka Commercial Park, located
along I-44 about 20 miles southwest of St. Louis.  The event was
attended by representatives of Visteon, the City of Eureka, the
St. Louis County Economic Council and the St. Louis Regional
Chamber and Growth Association.

The Visteon plant initially will supply door panels, consoles
and cockpits to Chrysler Group's St. Louis North Assembly Plant.

Visteon President and Chief Operating Officer Donald J. Stebbins
said the new plant supports Visteon's three-year plan to
restructure, improve base operations and grow the business.

"Our significant business growth requires us to add strategic
manufacturing capacity, and we're pleased to be creating new
jobs in Missouri," Mr. Stebbins said.  "This project
demonstrates the confidence our customers are placing in Visteon
to meet their quality, delivery and cost requirements for
vehicle systems."

The new Missouri facility will use innovative manufacturing
processes designed to deliver interior products for in-sequence,
just-in-time installation in vehicles.  Visteon's products and
production processes are designed to reduce tooling costs, cycle
time and scrap, while promoting recyclability.

Julie Fream, vice president of Visteon's North America customer
groups, commended the efforts of state, regional and local
officials in helping Visteon select the site.  Visteon received
property tax abatements, payroll tax incentives and training
grants for the new facility.

"We are very appreciative of the assistance and support received
from the Missouri Department of Economic Development, the St.
Louis County Economic Council and the St. Louis Regional Chamber
and Growth Association," Ms. Fream said.

"Business growth is a key component of Visteon's improvement
plan," she added.  "Through the commitment of our employees and
the cooperation of state and local governments, this will be a
cost-competitive manufacturing operation that will effectively
serve our customers, while creating opportunities for our
employees and the local community."

Eureka Mayor Kevin M. Coffey welcomed Visteon's decision to
build in the community.  "We are pleased to have a global
company of Visteon's caliber choose our community for its new
manufacturing plant, and we look forward to the new jobs and
economic stimulus that this new facility will generate," Mr.
Coffey said.

"I am extremely pleased to welcome Visteon Corporation to St.
Louis County," St. Louis County Executive Charlie A. Dooley
said.  "This commitment to our community is exciting and welcome
news."

Headquartered in Van Buren Township, Mich., Visteon Corp.
(NYSE: VC) -- http://www.visteon.com/-- is a global automotive
supplier that designs, engineers and manufactures innovative
climate, interior, electronic, and lighting products for vehicle
manufacturers, and also provides a range of products and
services to aftermarket customers.  The company has more than
170 facilities in 24 countries and employs around 50,000 people.

With corporate offices in the Michigan (U.S.); Shanghai, China;
and Kerpen, Germany; the company has more than 170 facilities in
24 countries, including Mexico and India, and employs
approximately 50,000 people.

At March 31, 2007, the company's balance sheet showed a
stockholders' deficit of US$106 million, compared to a deficit
of US$188 million at Dec. 31, 2006.

                        *     *     *

As reported in the Troubled Company Reporter on April 10, 2007,
Fitch Ratings has taken these actions regarding the ratings of
Visteon Corp.: Issuer Default Rating affirmed 'CCC'; Senior
Secured Bank Facility affirmed 'B/RR1'; and Senior unsecured
downgraded to 'CC/RR6' from 'CCC-/RR5'.


VISTEON CORP: To Close Bedford Plant; 685 Jobs Slashed
------------------------------------------------------
Visteon Corp. plans to close its plant in Bedford, Indiana on
April 2008, slashing 685 jobs in the process, according to
various reports.

Reports say that the move is part of the company's three-year
restructuring plan that will cease making auto parts and
assembling fuel-delivery modules, but instead concentrate on
producing auto interiors, climate controls and electronics.

The plant is among the 30 plants Visteon plans to shutter, fix
or sell through 2009, Visteon spokesman Jim Fisher relates.

Severance payment discussions between Visteon and union
representatives are anticipated to be soon, various sources
reports.

In September 2007, Visteon will seal up its auto-parts plant in
Connersville, Indiana, consequently, displacing 890 employees.

As reported in the Troubled Company Reporter on Nov. 6, 2006,
Visteon expected that the restructuring will generate up to
US$75 million of annual savings when completed.  The company
continues to evaluate alternatives and solutions for the
remaining facilities, including divestitures, that yield
acceptable returns to the company.

Based in Van Buren Township, Michigan, Visteon Corporation
(NYSE: VC) -- http://www.visteon.com/-- is a global automotive
supplier that designs, engineers and manufactures innovative
climate, interior, electronic, and lighting products for vehicle
manufacturers, and also provides a range of products and
services to aftermarket customers.  The company has more than
170 facilities in 24 countries and employs around 50,000 people.

With corporate offices in the Michigan (U.S.); Shanghai, China;
and Kerpen, Germany; the company has more than 170 facilities in
24 countries, including Mexico and India, and employs
approximately 50,000 people.

At March 31, 2007, the company's balance sheet showed a
stockholders' deficit of US$106 million, compared to a deficit
of US$188 million at Dec. 31, 2006.

                        *     *     *

As reported in the Troubled Company Reporter on April 10, 2007,
Fitch Ratings has taken these actions regarding the ratings of
Visteon Corp.: Issuer Default Rating affirmed 'CCC'; Senior
Secured Bank Facility affirmed 'B/RR1'; and Senior unsecured
downgraded to 'CC/RR6' from 'CCC-/RR5'.


SHAW GROUP: Plans New Fabrication Facility in Mexico
----------------------------------------------------
The Shaw Group Inc. plans to construct a new state-of-the-art
industrial pipe and structural steel fabrication facility in
Matamoras, Mexico, further executing its capacity expansion
program for its fabrication and manufacturing business.  The
facility will include over 370,000 square feet of enclosed shop
space and state-of-the-art piping technologies designed to
interface with Shaw's proprietary production management systems.
Shaw will fabricate custom piping systems and structural steel
at the new facility, which is expected to be Shaw's largest.
The planned facility is expected to be in operation by early
2008.  Shaw also plans to add additional work shifts at certain
existing facilities as part of its capacity expansion program.

"The availability of skilled labor, solid transportation
infrastructure, and proximity to our suppliers and clients'
projects makes the Matamoras facility a strong strategic
addition to our existing portfolio of fabrication facilities,"
J.M. Bernhard, Jr., chairman, president and chief executive
officer of Shaw, said.  "With this facility in operation,
combined with other expansion strategies we are engaged in, Shaw
will increase its pipe fabrication and manufacturing volume
capacity by approximately 50% from 2005."

This phase of Shaw's fabrication expansion program is expected
to significantly increase capacity to address the current and
expected increase in demand for piping and structural steel
fabrication from the fossil power, nuclear power, refining and
petrochemical markets, as well as Canadian oil sands projects.

"Shaw will continue to execute its expansion strategy and we
look forward to strengthening our position as the world leader
in pipe fabrication and manufacturing," Mr. Bernhard, added.

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

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

                          *     *     *

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

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


LIBBEY INC: Jean-Rene Gougelet Joins Board of Directors
-------------------------------------------------------
Libbey Inc. named Jean-Rene Gougelet as part of its Board of
Directors, effective with the Board's meeting.  As a member of
Class I of the Board, he will serve until the Libbey Annual
Stockholder Meeting in 2009 or until his successor is elected.

Mr. Gougelet is currently a Strategy Consultant with Vido
Enterprises, providing guidance in strategic planning and growth
management to middle market companies.  Prior to joining Vido
Enterprises he served at Arc International in Secaucus, New
Jersey as Chief Executive Officer of its Mikasa business from
2001 through 2005.  He also served from 1991 through 2001 and
2003 through 2005 as the Chief Executive Officer of Arc North
America in Millville, New Jersey.

Commenting on the new director, John F. Meier, Libbey Chairman
and Chief Executive Officer stated," Libbey is excited to have
Jean-Rene Gougelet join our Board.  His extensive background and
experience in the marketplace, both in North America and
internationally will contribute greatly to the opportunities the
company sees for the future."

Mr. Gougelet was elected a director by the Board upon the
recommendation of its Nominating and Governance Committee.  With
the addition of Mr. Gougelet, the Libbey board of directors now
numbers nine members, of which seven are outside directors.

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

                        *     *     *

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


JABIL CIRCUIT: Third Quarter Net Income Drops to US$6.2 Million
---------------------------------------------------------------
Jabil Circuit Inc. disclosed financial results for its third
quarter of fiscal 2007, ended May 31, 2007.  "We are pleased
with the improvements we have made both in operating
efficiencies and progress on our balance sheet metrics," said
President and C.E.O. Timothy L. Main.

Third Quarter 2007 Operational and Balance Sheet Sequential
Highlights:

   * GAAP operating margin decreased eight percent.  Core
     operating margin improved 57 percent.

   * GAAP earnings decreased US$0.04 per fully diluted share.
     Core earnings increased US$0.09 per fully diluted share.

   * Cash flow from operations for the quarter was approximately
     US$192 million.

   * Third quarter sales cycle improved from 29 days in the
     second quarter to 26 days.

   * Annualized inventory turns improved from seven turns in the
     second quarter to eight turns.

   * Core Return on Invested Capital increased to 10 percent
     from seven percent in the second quarter.

   * A US$0.07 dividend was paid on June 1, 2007.

             Third Quarter 2007 Year-over-Year Results

Net revenue for the third quarter of fiscal 2007 increased to
US$3.0 billion compared to US$2.6 billion for the same period of
fiscal 2006.  On a GAAP basis, operating income for the third
quarter of fiscal 2007 decreased to US$33.6 million compared to
US$77.3 million for the same period of fiscal 2006.  On a GAAP
basis, net income for the third quarter of fiscal 2007 decreased
to US$6.2 million compared to US$64.2 million for the same
period in fiscal 2006.  GAAP diluted earnings per share for the
third quarter of fiscal 2007 decreased to US$0.03 compared to
US$0.30 for the same period of fiscal 2006.

Jabil's third quarter of fiscal 2007 core operating income
decreased to US$87.1 million or 2.9 percent of net revenue
compared to US$93.4 million or 3.6 percent of net revenue for
the third quarter of fiscal 2006.  Core earnings decreased to
US$47.4 million compared to US$78.5 million for the third
quarter of fiscal 2006.  Core earnings per share decreased to
US$0.23 per diluted share for the period compared to US$0.36 for
the third quarter of fiscal 2006.

                          Business Update

"We will continue to focus on making step by step improvements
in our operational efficiency and in our financial performance.
We believe we are on the right path and intend to demonstrate
this to our investors over the next several quarters," said
President and C.E.O. Timothy L. Main.

Jabil said it expects revenue for its fourth fiscal quarter of
2007 to remain at the US$3.0 billion level, with an estimated
core operating margin range of 3.0 to 3.5 percent.  The company
said its core earnings per share are anticipated to be in a
range of US$0.25 to US$0.31 per diluted share.  Under GAAP,
earnings per share are estimated to be US$0.07 to US$0.16 per
diluted share. (Expected GAAP earnings per share for the fourth
quarter of fiscal 2007 are currently estimated to include
US$0.04 per share for amortization of intangibles, US$0.05 per
share for stock-based compensation and related charges and
US$0.06 to US$0.09 per share for restructuring and impairment
charges.)

Jabil Circuit, Inc., headquartered in St. Petersburg, Florida --
http://www.jabil.com/-- is an electronic product solutions
company providing comprehensive electronics design,
manufacturing and product management services to global
electronics and technology companies.  Jabil Circuit has more
than 50,000 employees and facilities in 20 countries, including
Brazil, Mexico, United Kingdom and Japan.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 4, 2007, Moody's Investors Service confirmed Jabil Circuit,
Inc.'s Ba1 corporate family rating and revised the outlook to
negative following the recent filing of its fiscal 2006 (August
yearend) 10-K and fiscal 2007 first and second quarter tenth-
quarters. Simultaneously, Moody's upgraded the rating on the
existing US$300 million senior unsecured notes to Ba1 from Ba2.


RADIOSHACK CORP: Fitch Lowers Issuer Default Rating to BB
---------------------------------------------------------
Fitch Ratings has downgraded these ratings for RadioShack
Corporation:

   -- Issuer Default Rating (IDR) to 'BB' from 'BB+';
   -- Bank credit facility to 'BB' from 'BB+';
   -- Senior unsecured notes to 'BB' from 'BB+'.

The short-term IDR is affirmed at 'B'.  Approximately US$520
million of total debt is affected by these actions.  The Rating
Outlook is Negative.

The downgrades reflect continued weakness in many of
RadioShack's business segments, particularly wireless products
and services, and concerns about revenue trends and the
company's ability to produce sustainable profitability.  The
ratings also consider management's efforts to improve
operational efficiency as well as the challenges of executing a
turnaround in a highly competitive operating environment.

RadioShack has continued to report negative comparable store
sales driven by weak operating trends across most of its
business segments.  In particular, the company's core wireless
business, which represents about one-third of its total
revenues, has struggled to attract customers to the Cingular
network despite targeted marketing efforts.  In spite of weak
sales trends, management has implemented cost-cutting
initiatives such as headcount reductions and better inventory
management, which have resulted in improved operating margins.
EBITDAR margin increased to 14.5% in the last 12 months ended
March 31, 2007, from 13.5% in 2006, although it remains below
the previous five-year levels, which ranged between 16.4% to
19.9%. In addition, credit metrics remain weak with EBITDAR
coverage of interest and rent of 1.9 times and total adjusted
debt/EBITDAR of 4.5x for the LTM period.

While RadioShack's cost-cutting efforts have helped stabilize
operating profits in the near term, management has not
articulated a business strategy to address revenue growth, and
Fitch remains concerned about RadioShack's long-term ability to
stabilize and grow revenues and operating profits.  As a result,
Fitch expects the company's credit metrics to remain below their
historical levels over the near to medium term.

Of ongoing concern is the increasing competition in the consumer
electronics and wireless businesses from national big-box
retailers and discounters as well as wireless carriers and other
new wireless distribution channels.  These retailers offer a
wide selection of consumer electronics and wireless products
and, as they expand their store bases, are becoming increasingly
convenient to customers.

RadioShack Corporation (NYSE: RSH) --
http://www.radioshackcorporation.com--
retails consumer electronics specialty products through more
than 6,000 company-operated stores and dealer outlets in the
United States, over 100 RadioShack locations in Mexico and
nearly 800 wireless phone kiosks.


SOCIEDAD COMERCIAL: Court Okays Ertach Sale to Telmex
-----------------------------------------------------
A court handling Sociedad Comercial del Plata's debt
restructuring process has ratified the sale of the company's
broadband provider Ertach to Telefonos de Mexico aka Telmex, El
Cronista reports.

A report from TeleGeography relates that Sociedad Comercial
signed in August 2006 a preliminary agreement to sell Ertach to
Telmex for US$22.5 million.

According to the report, Sociedad Comercial purchased Millicom
International Cellular's 65% stake in Ertach in 2004 for US$2
million.

Ertach's management is positive that the firm is very valuable
to Telmex as it has an extensive network, ideal for offering
broadband to small and medium-sized enterprise and residential
clients in areas where Telmex's services is not available, the
report states.

Sociedad Comercial del Plata S.A.'s principal activities are
carried out through three business segments: petroleum and by-
products, entertainment, and other activities.  The petroleum
and by-products segment includes the production of petroleum,
natural gas, liquefied petroleum gas and gasoline, the
exploration and production of hydrocarbons, the operation of 26
service stations under the brand name PUMA, the processing of
crude petroleum and the distribution of fuel, lubricants,
turpentine, solvents, grease, asphalt, oil and other special
products, the manufacture of macroparaffin used in the
production of candles, matches, floor waxes and shines, carton
packaging, tires and lubricant oil and the transportation of
natural gas.  The entertainment segment includes the operation
of a theme park, a railway station for the theme park and a
casino.  Other activities include the development of single and
multi-family housing, hotels, restaurants, educational
establishments, among others.

At June 30, 2006, Sociedad Comercial's balance sheet showed
ARS733,842 million equity deficit compared with ARS100,013
million of positive shareholders equity at Dec. 31, 2005.




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


STARTECH ENVIRONMENTAL: Posts US$1 Mil. Net Loss in Second Qtr.
---------------------------------------------------------------
Startech Environmental Corp. reported a net loss of US$1,026,985
on revenue of US$191,976 for the second quarter ended
April 30, 2007, compared with a net loss of US$4,620,815 on
revenue of US$111,464 for the same period ended April 30, 2006.

Other expense for the three months ended April 30, 2007, was
US$44,935 compared to US$3,550,197, for the same period in 2006,
a decrease of US$3,505,262.  This decrease is mainly
attributable to the Cornell transaction where amortization of
deferred debt discount decreased US$894,278 and the impact of
the change in value of warrants and conversion options decreased
US$2,406,597.

For the three months ended April 30, 2007, revenue was generated
from the amortization of portions from the sale of the
distributorship agreements.  Additionally revenues were derived
from the completed installation in Mihama project in Japan.  For
the three months ended April 30, 2006, the company recognized
approximately US$66,000 as revenue from the amortization of the
distributorship agreements.  The balance of revenues were
derived from the overhaul project in Mihama during the three
months ended April 30, 2006.

At April 30, 2007, the company's consolidated balance sheet
showed US$6,609,135 in total assets, US$1,995,196 in total
liabilities, and US$4,613,939 in total stockholders' equity.

Full-text copies of the company's consolidated financial
statements for the quarter ended April 30, 2007, are available
for free at http://researcharchives.com/t/s?2118

                       Going Concern Doubt

Marcum & Kliegman LLP, in New York City, expressed substantial
doubt about Startech Environmental Corp.'s ability to continue
as a going concern after auditing the company's consolidated
financial statements for the years ended Oct. 31, 2006, and
2005.  The auditing firm cited that the company has no
significant recurring revenues and has incurred significant
losses since inception.

                   About Startech Environmental

Headquartered in Wilton, Connecticut, StarTech Environmental
Corporation (OTC BB: STHK.OB) -- http://startech.net/ --is an
environment and energy industry company engaged in the
production and sale of proprietary plasma processing equipment
known as the Plasma Converter System(TM).  The Plasma Converter
System safely and economically destroys wastes, no matter how
hazardous or lethal, and turns most into useful and valuable
products.

The company operates in Australia, and Panama.




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


DOE RUN: Peruvian Unit Eyes 16% Boost in Cobriza Production
-----------------------------------------------------------
Doe Run Peru said in a statement that it expects its Cobriza
copper mine to increase output by 16% to 19,700 tons in 2007.

According to Doe Run's statement, the bigger production is
expected due to optimization efforts and the appropriate
selection of equipment.  Cobriza has slightly less than 10.4
million tons grading 1.17% copper in resources and a daily ore
production rate of 5,260 tons with an average grade of 0.98%.

Doe Run said in a statement that it has been working at Cobriza
in Huancavelica department for eight years, investing US$13.6
million in environmental cleanup activities at Cobriza under the
statutory environmental cleanup accord Pama.

Business News Americas relates that Doe Run signed Pama when it
acquired the La Oroya polymetallic smelter complex some 390
kilometers away from Cobriza from the Peruvian government in
1997.

Cobriza hasn't "discharged any tailings" into the river Mantaro
since its "July 2004 zero-discharge commitment," Doe Run said in
a statement.

Based in St. Louis, Mo., The Doe Run Company --
http://www.doerun.com/-- is a privately held natural resources
company dedicated to environmentally responsible mineral
production, metals fabrication, recycling and reclamation.  The
company and its subsidiaries deliver products and services
needed to provide power, protection and convenience through
premium products and associated metals including lead, zinc,
copper, gold and silver.  As the operator of one of the world's
only multi-metal facilities and the Americas' largest integrated
lead producer, Doe Run employs more than 5,000 people, with U.S.
operations in Missouri, Washington and Arizona, and Peruvian
operations in Cobriza and La Oroya.

Doe Run Peru S.R.L., an indirect Peruvian subsidiary, operates a
smelter in La Oroya, Peru, one of the largest polymetallic
processing facilities in the world, producing an extensive
product mix of non-ferrous and precious metals, including
silver, copper, zinc, lead and gold.  Doe Run Peru also has a
copper mining and milling operation in Cobriza, Peru in the
region of Huancavelica, which is approximately 200 miles
southeast of La Oroya in Peru.

              Doe Run Peru Going Concern Doubt

As reported in the Troubled Company reporter-Latin America on
Aug. 10, 2006, Doe Run Peru has significant capital requirements
under environmental commitments and guarantees and substantial
contingencies related to taxes and has significant debt service
obligations under the revolving credit facility, each of which,
if not satisfied, could result in a default under Doe Run Peru's
credit agreement and collectively raise substantial doubt about
Doe Run Peru's ability to continue as a going concern.

Doe Run Peru continues to have substantial cash requirements in
the future, including the maturity of the revolving credit
facility on Sept. 22, 2006, and significant capital requirements
under environmental commitments.  In addition, there are
substantial contingencies related to taxes.

The Doe Run Peru Revolving Credit Facility expires on
Sept. 22, 2006, and will require negotiations to extend its
terms.  There can be no assurance that Doe Run Peru will be
successful in extending the existing credit agreement or
negotiating a new agreement, or if it is successful, that the
extended or new credit agreement would be at terms that are
favorable to Doe Run Peru.

Any default under the requirements of the Environmental
Remediation and Management Program could result in a default
under the Doe Run Peru Revolving Credit Facility.  A default
under the requirements of the Doe Run Peru Revolving Credit
Facility results in defaults under the Doe Run Revolving Credit
Facility and the indenture governing the bonds.


* PERU: Congress Studies Mining Agreement with Bolivia
------------------------------------------------------
The Peruvian Congress said in a statement that it is studying a
proposal to enter into an accord with Bolivia to strengthen
relations in the mining sector.

According to the congress' statement, it ratified a measure by
57 votes versus 33 to send the proposal to its constitutional
committee for review.  The release didn't disclose details on
the proposed pact.

The governments of Bolivia and Peru agree that mining is a vital
part of their respective economies.  However, they differ on
policies toward the sector, BNamericas states.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
March 2, 2007, Standard & Poor's Ratings Services assigned its
'BB+' foreign currency credit rating to the Republic of Peru's
(BB+/Stable/B foreign, BBB-/Stable/A-3 local currency sovereign
credit ratings) US$1.24 billion global bond due in 2037 issued
as part of a new liability management operation.




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


GENESCO: Paying Quarterly Dividends on Pref. Stock on July 30
-------------------------------------------------------------
Genesco Inc.'s board of directors has declared dividends on the
various classes of its preferred stock for the quarter ending
July 29, 2007, payable on July 30, 2007, to shareholders of
record on July 16, 2007.

The rates are:

    -- Subordinated serial preferred stock:

          Series 1            US$0.575 per share
          Series 3            US$1.1875 per share
          Series 4            US$1.1875 per share

    -- Subordinated cumulative preferred stock: US$0.375 per
       share

Headquartered in Nashville, Tennessee, Genesco Inc. (NYSE: GCO)
-- http://www.genesco.com/-- is a specialty retailer of
footwear, headwear and accessories in more than 1,900 retail
stores in the U.S. and Canada, principally under the names
Journeys, Journeys Kidz, Shi by Journeys, Johnston & Murphy,
Underground Station, Hatworld, Lids, Hat Zone, Cap Factory, Head
Quarters and Cap Connection, and on Internet websites
http://www.journeys.com,http://www.journeyskidz.com/,
http://www.undergroundstation.com/,
http://www.johnstonmurphy.com/,http://www.lids.com/,
http://www.hatworld.com/and http://www.lidscyo.com/. The
company also sells footwear at wholesale under its Johnston &
Murphy brand and under the licensed Dockers.  As of
June 9, 2006, it operated a total of 1,773 stores: 1,755 stores
throughout the United States and Puerto Rico, and 18 stores in
Canada.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
April 24, 2007, Moody's Investors Service placed the ratings of
Genesco Inc. on review for possible downgrade following the
announcement by Foot Locker that it had made an unsolicited
proposal to purchase all of the outstanding shares of Genesco
for US$46 per share cash representing a total consideration of
approximately US$1.2 billion.

These ratings are placed on review for possible downgrade:

    * Corporate family rating of Ba3;
    * Probability of default rating of Ba3;
    * Convertible senior subordinated debentures of B1.

As reported in the Troubled Company Reporter-Latin America on
April 24, 2007, Standard & Poor's Ratings Services placed its
ratings, including the 'BB-' corporate credit rating, on
specialty footwear and headwear retailer Genesco Inc. on
CreditWatch with developing implications.  This rating action
follows the announcement that Foot Locker Inc.
(BB+/Watch Neg/--) has launched a bid to acquire Nashville,
Tennesse-based Genesco for US$1.2 billion.


PIER 1: Posts US$57. Million Net Loss in Quarter Ended June 2
-------------------------------------------------------------
Pier 1 Imports Inc. incurred a net loss from continuing
operations of US$56,378,000 for the first quarter ended
June 2, 2007.  Total sales declined 5.2% for the first fiscal
quarter to US$356,375,000 from US$376,092,000 in the year-ago
quarter, and comparable store sales declined 5.4%.

              First Quarter Operating Results

During the first quarter, merchandise margins declined to 45.5%
as a direct result of the Company's aggressive liquidation of
modern craftsman merchandise.  Excluding the estimated impact of
the aggressive markdown strategy, merchandise margins for the
quarter would have approximated 52.2% compared to 53.8% last
year.  Store occupancy costs remained flat compared to the year
ago quarter.  Selling, general and administrative expenses
declined US$15.5 million from the year ago period, and were
37.1% of sales compared to 39.2% of sales last year.  The
primary drivers of the decrease in costs were savings of
approximately US$9 million in marketing expense, US$6 million in
store payroll, and US$4 million in other general administrative
costs when compared to the same period last year.  These cost
savings were partially offset by one-time and unusual charges of
US$3.5 million related to severance and outplacement costs
incurred with the Company's previously announced reduction in
force.  Excluding the impact on merchandise margins and the one-
time charge discussed above, management believes the pre-tax
loss for the first quarter would have been more in line with the
pre-tax loss for the year ago period.

                    Return To Profitability

Alex W. Smith, the Company's President and Chief Executive
Officer, said, "Earlier this year, we outlined six key business
priorities aimed at returning Pier 1 Imports to profitability
and beyond.  As planned, our results for the first quarter
reflect the impact of charges that are a direct result of the
speed with which we are executing our strategy.  I look forward
to today's conference call and updating you on our progress."

                     About Pier 1 Imports

Based in Fort Worth, Texas, Pier 1 Imports Inc. (NYSE:PIR)
-- http://www.pier1.com/-- is a specialty retailer of imported
decorative home furnishings and gifts with Pier 1 Imports(R)
stores in 49 states, Puerto Rico, Canada, and Mexico, and Pier 1
kids(R) stores in the United States.

                        *     *     *

As reported in the Troubled Company Reporter on Jan. 19, 2007,
Moody's Investors Service downgraded Pier 1 Imports Inc.'s
corporate family rating to Caa1 from B3 following its continuing
operating struggles and modest performance over the 2006 holiday
season.  Moody's said the rating outlook was revised to
negative.


STEWART ENTERPRISES: Moody's Puts Ba3 Rating on US$250MM Notes
--------------------------------------------------------------
Moody's Investors Service affirmed the Ba3 Corporate Family
Rating of Stewart Enterprises, Inc. and assigned a Ba3 rating to
the proposed US$250 million convertible note offering.
Concurrently, Moody's raised the ratings on the US$125 million
senior secured revolver to Baa3 from Ba2 and on the existing
6.25% senior notes to Ba3 from B1.  Moody's expects to withdraw
the Ba2 rating assigned to the US$162.8 million term loan upon
the closing of the refinancing. The rating outlook remains
stable.

On June 20, 2007, Stewart announced a proposed US$250 million
convertible note offering.  The company also expects to enter
into a convertible note hedge transaction with an affiliate of
one of the initial purchasers of the notes and a warrant
transaction with the same party.  The net effect of the hedge
and warrant transactions will be to increase the effective
conversion premium above the base premium.  The proceeds from
the convertible note offering are expected to be used to repay
the remaining US$162.8 million balance outstanding under the
term loan B, pay the net cost of the hedge and warrant
transactions, pay other transaction fees and expenses and
repurchase common stock in negotiated transactions

The upgrade of the ratings on the revolving credit facility and
the existing 6.25% notes reflects the reduction in secured debt
in the capital structure pro forma for the term loan repayment.
The Baa3 revolving credit facility rating also benefits from
additional debt cushion in the form of the unsecured convertible
notes.

The convertible note refinancing will modestly weaken credit
metrics with a US$90 million increase in net debt partially
offset by lower cash interest expense.  Pro forma for the
refinancing, Stewart will remain adequately positioned in the
Ba3 rating category based on key financial strength metrics.
The ratings remain constrained by flat death rates, growing
demand for cremations, increasing competition from traditional
and non-traditional competitors and legal and regulatory risks.
The ratings are supported by a large portfolio of funeral and
cemetery properties with leading market positions, strong
operating margins and a stable revenue and cash flow stream
supported by a large backlog of preneed funeral and cemetery
contracts.

Moody's took the following rating actions:

  -- Assigned $125 million senior convertible notes due 2014,
     Ba3 (LGD 4, 56%)

  -- Assigned $125 million senior convertible notes due 2016,
     Ba3 (LGD 4, 56%)

  -- Upgraded $125 million revolving credit facility due 2009,
     to Baa3 (LGD 1, 2%) from Ba2 (LGD 3, 41%)

  -- Upgraded US$200 million 6.25% senior notes (guaranteed) due
      2013, to Ba3 (LGD 4, 56%) from B1 (LGD 4, 60%)

  -- Affirmed US$162.8 million term loan B due 2011, Ba2 (LGD 3,
     41%)- rating expected to be withdrawn upon completion of
     the refinancing

  -- Affirmed Corporate Family Rating, Ba3

  -- Affirmed Probability of Default Rating, Ba3

The stable ratings outlook anticipates modest revenue growth and
stable operating margins.  Cash flow from operations is expected
to be utilized to fund capital expenditures, dividends and share
repurchases.

Based in Jefferson, La., Stewart Enterprises Inc. provides
funeral and cemetery products and services in the death care
industry in the U.S. As of Oct. 31, 2006, the Company's
operations included 229 funeral homes and 143
cemeteries in 25 states in the U.S. and Puerto Rico.




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


NAVIOS MARITIME: Hires Shunji Sasada as Chief Operating Officer
---------------------------------------------------------------
Navios Maritime Holdings Inc. appointed Shunji Sasada as its
Chief Operating Officer.

Angeliki Frangou, Navios' CEO and Chairman commented "Shunji has
been essential to Navios's success.  His knowledge of the
Company, understanding of fleet development and excellent
relationships with shipbuilders globally are only a few factors
for his leadership at Navios.  We expect to continue to benefit
from Shunji's valuable contributions in his new role."

Mr. Sasada began his shipping career in 1981 in Japan with
Mitsui O.S.K. Lines, Ltd. (MOSK), as a salesmen.  Mr. Sasada
subsequently worked in the tramp section in Mitsui's bulk
carrier division overseeing operations and chartering of
approximately 30 Handysize vessels.  In 1991, Mr. Sasada joined
Trinity Bulk Carriers in Norway as its chartering manager and
board member.  Mr. Sasada subsequently launched MOSK's London
operations as General Manager.

Mr. Sasada joined Navios in May 1997 and most recently served as
Senior Vice President Fleet Development.  He is a graduate of
Keio University, Tokyo, with a BA degree in Business.

                   Navios Esperanza Time Charter

Navios also announced a new time charter of the Navios
Esperanza, a panamax that will be delivered to Navios's long
term chartered-in fleet in August of 2007.  The 75,200 dwt
panamax has been contracted for two years at a net rate of
US$37,056 commencing upon delivery.

As a result of this new charter, Navios has extended the
coverage of its core fleet (excluding vessels acquired through
the Kleimar N.V. transaction) to 94.2% for 2007, 67.5% for 2008
and 25.8% for 2009.

Navios currently controls 45 vessels, of which 21 are owned and
24 are chartered-in.  Of the chartered-in vessels, 17 are
currently operating, and 7 are still to be delivered.  Navios
holds 11 purchase options on the 24 chartered-in vessels, 8 on
operating vessels, and 3 on the vessels still to be delivered.
All of these purchase options are for exercise prices below the
related vessel's current market value.

Navios Maritime Holdings Inc. (Nasdaq: BULK, BULKU, BULKW)
-- http://www.navios.com/-- is a vertically integrated global
seaborne shipping company, specializing in the worldwide
carriage, trading, storing, and other related logistics of
international dry bulk cargo transportation.  The company also
owns and operates a port/storage facility in Uruguay and has in-
house technical ship management expertise.  It maintains offices
in Piraeus, Greece, South Norwalk, Connecticut and Montevideo,
Uruguay.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
April 5, 2007, in connection with Moody's Investors Service's
implementation of its new Probability-of-Default and Loss-Given-
Default rating methodology for the existing non-financial
speculative-grade corporate issuers in Europe, Middle East and
Africa last week, the rating agency confirmed its B1 Corporate
Family Rating for Navios Maritime Holdings Inc.

The implementation of the LGD methodology in EMEA follows the
introduction of the methodology in September 2006.  Most of the
rating actions Moody's confirmed relate to senior secured loans.

                                                      Projected
                            Old POD  New POD  LGD     Loss-Given
   Debt Issue               Rating   Rating   Rating  Default
   ----------               -------  -------  ------  ----------
   Senior Unsecured
   Regular Bond/
   Debenture Due 2014       B2        B3      LGD5     80%




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


AES CORP: Reports US$119 Mil. Net Income in 2007 First Quarter
--------------------------------------------------------------
The AES Corporation reported strong first quarter 2007 results.
Revenues increased 11% to US$3.1 billion compared to US$2.8
billion for the first quarter of 2006, while net cash from
operating activities increased 14% to US$581 million compared to
US$509 million last year.

First quarter income from continuing operations was US$119
million, or US$0.18 earnings per diluted share.  The quarterly
results were in line with the company's expectations excluding a
non-cash charge of US$35 million due to an impairment of a
minority investment, and a charge of US$22 million, or US$0.03
impact on diluted earnings per share, relating to a litigation
reserve as a result of a court ruling at our subsidiary in
Kazakhstan.  Adjusted earnings per share (a non-GAAP financial
measure) were US$0.24 for the quarter and include the US$0.03
charge at our subsidiary in Kazakhstan. These results compare to
2006 first quarter income from continuing operations of US$330
million and adjusted earnings per share of US$0.39.  First
quarter 2006 results included a one-time US$87 million gain or
US$0.13 positive impact on diluted earnings per share associated
with the sale of Kingston in Ontario and the sale of an
additional US$39 million or US$0.05 positive impact on diluted
earnings per share in excess emission sales.

As anticipated and previously disclosed, the company recognized
an impairment charge of approximately US$638 million, or US$0.94
impact on diluted earnings per share, in connection with the
sale of its equity stake in its Venezuelan subsidiary C.A. La
Electricidad de Caracas (EDC), now included in discontinued
operations.  Including these charges, the Company incurred a net
loss of US$455 million.  This compares to net income of US$348
million, or US$0.52 earnings per diluted share in first quarter
2006.

During the quarter, AES continued to execute its growth plans.
The company signed a Memorandum of Understanding and
subsequently entered into a partnership with GE Energy Financial
Services to develop greenhouse gas emission reduction projects
in the United States.  The company also acquired two new power
plants with long-term power agreements in Tamuin, Mexico
totaling 460 MW of capacity.

"The quarter reflected strong revenues, cash flow and underlying
operating performance," said Paul Hanrahan, AES President and
CEO.  "We continued to implement our growth strategy focusing on
meeting increasing demand for energy in fast-growing markets
while expanding our presence in renewables and the growing
market for emission offsets."

First Quarter 2007 Consolidated Highlights:

   * Revenues increased by US$304 million to US$3.1 billion,
     reflecting higher prices and increased demand primarily in
     Latin America, the acquisition of two new facilities in
     Mexico and the consolidation of Itabo, one of the company's
     businesses in the Dominican Republic, and favorable foreign
     currency translation.

   * Gross margin decreased by US$49 million to US$868 million,
     primarily due to the benefit of higher emission sales of
     US$39 million recorded in first quarter 2006 and
     US$32 million cost recoveries related to prior periods in
     the first quarter of 2006 at Eletropaulo in Brazil.  This
     was partially off-set by favorable foreign currency
     translation, contributions from the two new facilities in
     Mexico and the consolidation of Itabo, and improved
     operating performance at various subsidiaries.


   * General and administrative expense increased US$28 million
     to US$85 million, largely from higher spending related to
     the strengthening of our financial organization, completion
     of our recent restatement and increased business
     development activities to support our growth initiatives.

   * Interest expense increased by US$4 million to
     US$422 million, reflecting debt at recently acquired
     businesses, including the two new facilities in Mexico,
     interest on regulatory liabilities in Brazil and losses on
     interest rate derivatives.  These increases were partially
     offset by debt retirements and lower interest rates at our
     Brazil subsidiaries.

   * Other expense decreased US$37 million to US$41 million,
     largely due to costs associated with debt retirements at
     the parent company and at our businesses in El Salvador
     during the first quarter of 2006, partially offset by a
     US$22 million charge in first quarter of 2007 related to a
     court ruling at our subsidiary in Kazakhstan.

   * Gain on sale of investment decreased by US$86 million due
     to the sale of AES Kingston, a 110 MW power plant in
     Ontario, Canada that resulted in a gain of US$87 million in
     the first quarter of 2006.

   * Other non-operating expense increased by US$39 million to
     US$39 million, largely due to a US$35 million impairment in
     the Company's minority investment in AgCert International.
     An impairment was determined to exist due to the
     application of accounting rules relating to an "other than
     temporary" decline in AgCert's stock price performance
     during the first quarter of 2007.

   * The effective tax rate during the quarter was 41% as
     compared to 31% in 2006.  This increase was primarily due
     to a change in tax law in China, unfavorable tax impacts of
     the charges associated with the impairment of the company's
     investment in AgCert and with the court ruling in
     Kazakhstan, and a favorable impact in the first quarter of
     2006 associated with the non-taxable sale of Kingston,
     offset by a tax benefit recorded upon the release of a
     valuation allowance at one of our subsidiaries in
     Argentina.

   * Income from continuing operations for the first quarter of
     2007 was US$119 million, or US$0.18 diluted earnings per
     share, versus US$330 million, or US$0.49 diluted earnings
     per share for the first quarter of 2006.  Adjusted earnings
     per share for the first quarter of 2007 were US$0.24
     compared to US$0.39 in first quarter 2006.

   * During the quarter, free cash flow (a non-GAAP financial
     measure) increased by US$68 million to US$377 million,
     primarily due to decreases in net working capital, lower
     cash tax payments and contributions from the two new
     facilities in Mexico and the consolidation of Itabo.

First Quarter 2007 Segment Highlights:

   * Latin America Generation revenue increased by
     US$139 million to US$738 million, primarily due to higher
     contract and spot prices at Gener in Chile, the
     consolidation of Itabo in the Dominican Republic, and
     increased energy prices in Argentina.  Gross margin
     decreased by US$9 million to US$250 million, primarily due
     to increased purchased electricity and fuel costs at
     Uruguaiana in Brazil and Gener in Chile and higher fixed
     costs at Gener, partially offset by the consolidation of
     Itabo and variable margin on the increased revenues in
     Argentina.

   * Latin America Utility revenue increased by US$73 million to
     US$1.2 billion, primarily due to the positive impact of
     foreign currency translation in Brazil and higher tariff
     rates at Eletropaulo and Sul in Brazil and CAESS-EEO in El
     Salvador.  Gross margin decreased by US$19 million to
     US$210 million, primarily due to prior period costs
     recovered through the tariff in first quarter 2006 at
     Eletropaulo in Brazil, partially offset by favorable
     foreign currency translation and the favorable tariff rates
     at Sul and CAESS-EEO.

   * North America Generation revenue increased by US$17 million
     to US$510 million, primarily due to the acquisition of the
     two new facilities in Mexico, higher spot prices at Eastern
     Energy in New York and planned outages at Warrior Run in
     Maryland and AES Hawaii in first quarter 2006.  These gains
     were mostly offset by lower emission sales in New York and
     outages at Merida in Mexico and at Deepwater in Texas.
     Gross margin decreased by US$20 million to US$154 million,
     primarily due to lower emission sales at Eastern Energy in
     New York.

   * North America Utility revenue increased by US$8 million to
     US$263 million, primarily due to higher volumes at IPL in
     Indiana.  Gross margin increased by US$17 million to
     US$81 million primarily due to higher volume and lower
     maintenance costs associated with generation unit overhauls
     in first quarter of 2006 at IPL.

   * Europe & Africa Generation revenue increased by
     US$44 million to US$252 million, primarily due to higher
     volume and prices in Kazakhstan, favorable foreign currency
     translation and higher volume and prices in Hungary.  Gross
     margin increased by US$10 million to US$90 million,
     primarily due to higher revenues in Kazakhstan and
     favorable foreign currency translation, partially offset by
     lower emission sales at Bohemia in Czech Republic.

   * Europe & Africa Utility revenue increased by US$14 million
     to US$166 million, primarily due to higher tariff rates in
     Ukraine and foreign currency translation gains.  Gross
     margin decreased by US$19 million to US$17 million due to
     reduced rainfall in Cameroon which led to increased fuel
     costs and an unfavorable derivative mark-to-market variance
     at AES SONEL in Cameroon.  Additionally, AES SONEL
     experienced higher fixed costs related to increased
     staffing and higher depreciation.

   * Asia Generation revenue increased by US$18 million to
     US$212 million, primarily due to higher volume in Pakistan
     and an outage at Ras Laffan in Qatar in 2006, partially
     offset by lower volumes in Sri Lanka.  Gross margin
     decreased by US$5 million to US$58 million, primarily due
     to lower volumes in Sri Lanka and higher planned
     maintenance costs at Barka in Oman.

                          About AES Corp.

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.


CITGO PETROLEUM: Yoder Oil Stops Selling Firm's Oil
---------------------------------------------------
Yoder Oil has decided to stop selling oil from Citgo Petroleum
Corporation due to complaints it received from clients over
Venezuelan President Hugo Chavez, the Michael Sanserino at the
South Bend Tribune reports.

According to the South Bend, Yoder Oil started selling Citgo
Petroleum's oil in the 1990s.  It was partly a political
decision.

Yoder Oil Chief Executive Officer Kent Yoder told the South Bend
that Citgo Petroleum is owned by the Venezuelan government and
his firm wanted to invest in oil produced in the Western
Hemisphere rather than send its business to the Middle East.
However, the company decided to shift to another brand when
President Chavez called US President George Bush a devil during
his speech before the United Nations Organization in September
2006.

The South Bend relates that complaints about President Chavez's
handling of human rights in Venezuela also led to a call to stop
using Citgo Petroleum gas in the US.

Yoder Oil founder Gerry Yoder told the South Bend that the firm
also received complaints from clients about Yoder Oil's
association with Citgo Petroleum.

The report says that Yoder Oil started to sell American-owned
Marathon's oil instead of that of Citgo Petroleum in April
mostly for business reasons, though there could be were
political reasons.

Yoder Oil President Brett Yoder admitted to the South Bend that
some people weren't happy with the firm's association with Citgo
Petroleum.  He commented, "We've gotten compliments for
switching from people who appreciate the move.  For the most
part it's been a good business decision for us."

The Yoder Oil president explained to the South Bend that he
preferred Marathon over Citgo Petroleum due to the benefits that
come with the firm's gasoline, like credit card discounts.

Meanwhile, Citgo Petroleum spokesperson Fernando Garay told the
South Bend that switching oil brands isn't uncommon.

South Bend notes that Indiana Petroleum Marketers and Convenient
Stores Association's executive director Scot Imus agreed with
Mr. Garay.  According to him, gas boycotts hurt local retailers
more than they hurt the corporations.  He commented, "I think
the boycotts are certainly misplaced.  What they're boycotting
is someone who's been in the community for a long time.  Once we
start down that list, are we going to boycott fuel coming from
all countries that are not run by good people?  It's awfully
tough to do that, and I don't think it's fair to single out a
company."

The South Bend says that Yoder Oil still sells some of Citgo
Petroleum's products, including its industrial lubricants.  In
case some clients don't like those products, they also sell
lubricants from other brands.

"They [the Venezuelan government] have a democratic society down
there.  They voted on someone (President Chavez) that not
necessarily everybody agrees with.  It's not very different in
this country.  We've had presidents, as you know, that not all
of us have agreed with.  They have a different political
persuasion, and some people in this country support what he's
saying, and some don't," Kent Yoder told the South Bend.

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

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

                        *     *     *

Standard and Poor's Ratings Services assigned a 'BB' rating on
Citgo Petroleum Corp. in Feb. 14, 2006.

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


CITGO PETROLEUM: Bracewell & Guiliani No Longer Represents Firm
---------------------------------------------------------------
Rudolph Giuliani, Esq., at Bracewell & Giuliani, told Craig
Gordon at Newsday.com that the law firm has stopped representing
Citgo Petroleum Corp.

A Bracewell & Giuliani spokesperson confirmed to Newsday.com
that the law firm no longer works for Citgo Petroleum.

Mr. Giuliani didn't tell Newsday.com how or why the firm's
relationship with Citgo Petroleum ended.

According to Newsday.com, Mr. Giuliani, a former New York mayor,
faced criticism over Bracewell & Giuliani's relationship with
Citgo Petroleum, as it seemed to "run counter to his campaign
pledge to promote energy independence" in the US, as a "way to
sever US dependence on oil-rich" US opponents like President
Hugo Chavez.

Mr. Giuliani told Newsday.com that Bracewell & Giuliani
represented well the thousands of US citizens Citgo Petroleum
employs.

The report says that Bracewell & Giuliani first worked for Citgo
Petroleum in March 2007.

Bloomberg News relates that Bracewell & Giuliani performed
lobbying work in the Texas State Legislature for Citgo
Petroleum.

Texas state records indicate that Citgo Petroleum had a contract
with the law firm in 2007 and was expected to pay it up to
US$100,000, Newsday.com states.

           Bracewell & Giuliani
           1177 Avenue of the Americas
           19th Floor
           New York, New York 10036-2714
           USA
           Phone: 212.508.6100
           Fax:   212.508.6101

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

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

                        *     *     *

Standard and Poor's Ratings Services assigned a 'BB' rating on
Citgo Petroleum Corp. in Feb. 14, 2006.

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


PETROLEOS DE VENEZUELA: Delays Production at Corocoro Oil Field
---------------------------------------------------------------
An industry official familiar with the drilling program told Dow
Jones Newswires that production at the Corocoro oil field has
been delayed until September as the Venezuelan state-run oil
firm Petroleos de Venezuela SA takes over operations.

According to Dow Jones, the delay indicates the challenges that
Petroleos de Venezuela is facing as it begins managing projects
set up by global oil firms in the 1990s.

Dow Jones notes that ConocoPhillips ran Corocoro until May 2007,
when Venezuelan President Hugo Chavez declared the
nationalization of hydrocarbons in the country.

The executive told Dow Jones that the Corocoro was supposed to
start production this month.  However, Petroleos de Venezuela is
completing the fourth of 10 wells required to start pumping oil.

The report says that the first Corocoro contract granted
Petroleos de Venezuela the option to purchase a 35% stake in the
venture.  However, in the renegotiated contract Petroleos de
Venezuela is demanding a 60% stake in all private oil projects.
It has set a June 26 deadline for negotiating the new terms.

The executive told Dow Jones that the floating storage barge
needed to get the oil from the platform to pipelines is a "loose
end" for Petroleos de Venezuela.

Dow Jones notes that the barge belongs to Conoco.  If contract
renegotiations fail, the firm could pull it out of Venezuela to
force Petroleos de Venezuela to seek replacement equipment.
This would result to further delays.

Conoco could be "leveraging the storage issue to get better
terms" from Petroleos de Venezuela, Dow Jones says, citing
another executive in the industry.

Dow Jones says that Venezuela's oil output has been decreasing
for years as the nation concentrates more on controlling oil
projects than boosting production volumes.

The country's total crude production dropped almost one million
barrels per day to 2.37 million barrels per day in May 2007,
which is below official estimates, Dow Jones states, citing the
International Energy Agency.

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.


PETROLEOS DE VENEZUELA: May Oil Output at 2.37MM Barrels Daily
--------------------------------------------------------------
Venezuelan state-run oil firm Petroleos de Venezuela SA's
average daily oil output was 2.37 million barrels, the same with
its April production, El Universal reports, citing the
International Energy Agency.

According to El Universal, Petroleos de Venezuela's May output
was slightly lesser than the first quarter 2007 average of 2.44
million barrels per day and the fourth quarter 2006's 2.5
million barrels per day.

Business News Americas relates that the IEA said Venezuela could
produce 2.6 million barrels per day.

The Venezuelan Energy Minister and Petroleos de Venezuela
President Rafael Ramirez told El Universal that the nation has
just decreased its oil production 195,000 barrels per day.

The cut was in line with the accord recently reached with OPEC,
BNamericas notes, citing Minister Ramirez.

Minister Ramirez told BNamericas that output had been reduced in
the Orinoco belt and in the Boscan field.

Petroleos de Venezuela disclosed in May that the four projects
in the Orinoco belt produced 482,000 barrels per day and had
total capacity of 570,000 barrels daily, according to
BNamericas.

IEA explained to BNamericas that the output cut was mainly
involuntary and a result of events in Iraq and Nigeria.

Geopolitical tensions and the lack of refining capacity in the
US are responsible for the increase in oil prices, BNamericas
states, citing Petroleos de Venezuela.

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

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.


* VENEZUELA: Bolivia Buying Liquefied Petroleum from Nation
-----------------------------------------------------------
Yacimientos Petroliferos Fiscales Bolivianos Operations Vice-
President Sebastian Daroca told El Universal that his nation is
importing liquefied petroleum gas from Venezuela due to
shortages.

"There should be no deficit, if smuggling is strictly
controlled.  But based on the trends of demand, we have
estimated deficit at 30-40 tons LPG a day," the Bolivian
official explained to the a reporter from El Universal.


                        ***********


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

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

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

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