TCRLA_Public/070626.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

            Tuesday, June 26, 2007, Vol. 8, Issue 125

                          Headlines

A R G E N T I N A

AIME SUYAY: Proofs of Claim Verification Is Until Sept. 21
ALITALIA SPA: Italy Moves Bid Deadline to July 12
AMC TELEVISION: File Reorganization Petition in Buenos Aires
BALLY TECHNOLOGIES: Deutsche Bank Keeps "Hold" Rating on Shares
BALLY TECHNOLOGIES: George Smith Reaffirms Buy Rating on Shares

BANCO COMAFI: Moody's Assigns Ba2 Global Currency Rating
BIOMET INC: Moody's Confirms (P)B2 Corporate Family Rating
CHINA SOUTHERN: Inks Strategic Partnership with Continental Air
FORD MOTOR: Denies Plans to Build Slovak Plant; Eyes Romania
PLATINUM PRODUCCIONES: Claims Verification Deadline Is Aug. 13

RED HAT: Names Andrew Hu President of Greater China Operations
TELECOM PERSONAL: Phasing Out Time Division Multiple Access
VERIFONE INC: Parent Closes US$316.25 Mil. Senior Notes Offering

* BUENOS AIRES: Secures US$45-Million Loan from Andean Dev't

B A H A M A S

MIRANT CORP: Closes Philippine Asset Sale for US$3.2 Billion

B E R M U D A

ACCOUNTANTS PROFESSIONAL: Final General Meeting Is on July 3
BELL ATLANTIC: Final General Meeting Is Set for July 10
BMS ALPHA: Proofs of Claim Filing Is Until July 11
BMS ALPHA: Final General Meeting Is Set for July 24
MARTIN CURRIE: Sets Final General Meeting for July 2

SCOTTISH RE: Hires Dan Roth as Executive Vice President & CRO

B O L I V I A

COEUR D'ALENE: Can Conduct Bolnisi Due Diligence Until July 3
PETROLEO BRASILEIRO: Court Says No to Plant Sale Suspension

B R A Z I L

AMERICAN AIRLINES: Lloyd Hill Voted as Pilots' Union President
ARMOR HOLDINGS: CFIUS Gives Nod on BAE Systems Merger
BANCO BMG: S&P Ups Long-Term Counterparty Credit Rating to BB-
BANCO CRUZEIRO: Raises BRL560 Mil. from Initial Public Offering
BANCO DAYCOVAL: S&P Ups Rating to BB- & Removes from Watch

BANCO FIBRA: S&P Ups Rating to BB- & Removes from Credit Watch
BANCO INDUSTRIAL: S&P Lifts Counterparty Credit Rating to BB-
BANCO INDUSVAL: S&P Affirms B+/B Counterparty Credit Rating
BANCO NACIONAL: Antonio de Castro to Take Senior Advisor Role
BANCO NACIONAL: Grants BRL1.48-Billion Loan to ThyssenKrupp

BANCO PINE: S&P Ups Long-Term Counterparty Credit Rating to BB-
BANCO SCHAHIN: S&P Affirms B/B Counterparty Credit Rating
COMPANHIA ENERGETICA: Paying Dividends & Interests on June 29
DAIMLERCHRYSLER: Truck Group Inks Supply Pact with Fiat
GERDAU SA: Will Form Joint Venture with Kalyani Group

HEXCEL CORP: Inks Purchase Deal with JPS for Carolina Assets
JAPAN AIRLINES: To Cut 4,300 Jobs a Year Earlier Than Expected
KLABIN SA: S&P Affirms BB Credit Rating with Stable Outlook
PARANA BANCO: S&P Ups Long-Term Counterparty Credit Rating to B+
PETROLEO BRASILEIRO: Awards US$34-Million Contract to HidroClean

PETROLEO BRASILEIRO: Oil & Gas Production Drop 1% in May 2007
SWIFT & CO: J&F Unit Plans US$600-Mil. Notes Private Offering
VASOMEDICAL INC: Inks Business Alliance with Living Data

C A Y M A N   I S L A N D S

AB FUNDING: Proofs of Claim Filing Is Until July 11
AB FUNDING: Will Hold Final Shareholders Meeting on July 18
AL BAIT: Proofs of Claim Filing Ends on July 11
BANCAJA INT'L: Sets Final Shareholders Meeting on July 26
BANCO ABC: Fitch Affirms BB+ Long-Term Foreign Currency Rating

CAYMAN CONNECTOR: Proofs of Claim Must be Filed by July 11
EM CAPITAL: Proofs of Claim Must be Filed by July 20
EM CAPITAL: Sets Final Shareholders Meeting for July 20
FREEBIRD OFFSHORE: Proofs of Claim Filing Ends on July 3
FREEBIRD OFFSHORE: Sets Final Shareholders Meeting for July 3

INVESTCORP HARBORSIDE: Proofs of Claim Filing Ends on July 6
INVESTCORP HARBORSIDE INVESTING: Claims Filing Ends on July 6
KA LEASING: Holding Final Shareholders Meeting on July 18
KENWALL LTD: Proofs of Claim Filing Deadline Is July 25
NEW CARE: Proofs of Claim Filing Deadline Is July 6

NEW EQUITY: Proofs of Claim Filing Ends on July 6
NEW HARBORSIDE: Proofs of Claim Filing Is Until July 6
NEW HEALTHCARE: Proofs of Claim Must be Filed by July 6
NEW HRB: Proofs of Claim Must be Filed by July 6
PERENCO ERITREA: Will Hold Final Shareholders Meeting on July 12

PERENCO ERITREA: Proofs of Claim Filing Ends on July 12

C H I L E

SHAW GROUP: Inks Partnership Agreement with Alinda Capital

E C U A D O R

PETROECUADOR: Sells 3.6 Million Barrels of Oriente Crude

E L   S A L V A D O R

MILLICOM INTERNATIONAL: Morgan Joseph Reaffirms Buy Rating

G U A T E M A L A

LAND O'LAKES: Moody's Ups Corp. Family Rating to Ba2 from Ba3

H O N D U R A S

* HONDURAS: Launching Quasi-Mobile Service in 30 Days

J A M A I C A

NACIONAL COMMERCIAL: Unit Opening Rights Issue of 100MM Shares

M E X I C O

AMERICAN GREETINGS: Paying US$0.10 Per Share Dividend on July 19
HARLAN SPRAGUE: S&P Rates US$360 Mil. Senior Facilities at BB
NUANCE COMMS: US$225MM Loan Increase Cues S&P to Affirm Ratings
ONEIDA INC: Moody's Places B2 Corporate Family Rating
TCL CORP: Plans Listing of PC Unit to Raise Capital

P U E R T O   R I C O

ADELPHIA COMMS: Claims Objection Deadline Extended to Sept. 13
ADELPHIA COMMS: Wants Affiliates' Chapter 11 Cases Closed

U R U G U A Y

* URUGUAY: State Telco Will Cut Telephony Rates on July 1

V E N E Z U E L A

PETROLEOS DE VENEZUELA: Ryder Scott Spots Crude in Carabobo

* VENEZUELA: Cantv Will Invest VEB1.6 Billion This Year
* Large Companies with Insolvent Balance Sheets


                         - - - - -



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


AIME SUYAY: Proofs of Claim Verification Is Until Sept. 21
----------------------------------------------------------
Jose P. Gonzalez, the court-appointed trustee for Aime Suyay
SRL's bankruptcy proceeding, verifies creditors' proofs of claim
until Sept. 21, 2007.

Mr. Gonzalez will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 7 in Cordoba, with the assistance of Clerk No. 14,
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 Aime Suyay 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 Aime Suyay's
accounting and banking records will be submitted in court.

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

The debtor can be reached at:

         Aime Suyay SRL
         Belgrano 265
         Buenos Aires, Argentina

The trustee can be reached at:

         Jose P. Gonzalez
         Cordoba 2444
         Buenos Aires, Argentina


ALITALIA SPA: Italy Moves Bid Deadline to July 12
-------------------------------------------------
The Italian government extended to July 12, 2007 the deadline
for the final bidders to submit binding offers for its 39.9%
stake in national carrier Alitalia S.p.A., Bloomberg News
reports.

The Italian finance ministry had previously set the deadline on
July 2, 2007, but moved it to give Alitalia's newest bidder,
MatlinPatterson Global Advisers LLC, ample time to review the
carrier's accounts.

The fund was previously part of a 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."

                         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.


AMC TELEVISION: File Reorganization Petition in Buenos Aires
------------------------------------------------------------
AMC Television S.A. has requested for reorganization approval in
the National Commercial Court of First Instance No. 5 in Buenos
Aires after failing to pay its liabilities since May 20, 2007.

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

Clerk No. 9 assists the court on this case.

The debtor can be reached at:

          AMC Television S.A.
          Parana 326
          Buenos Aires, Argentina


BALLY TECHNOLOGIES: Deutsche Bank Keeps "Hold" Rating on Shares
---------------------------------------------------------------
Deutsche Bank Securities analysts have kept their "hold" rating
on Bally Technologies' shares, Newratings.com reports.

According to Newratings.com, the target price for Bally
Technologies' shares was increased to US$24 from US$19.

The analysts said in a research note that Bally Technologies
reported its first quarter 2007 and second quarter 2007 adjusted
earnings per share at US$0.08 and US$0.01, respectively.

Bally Technologies' results are likely to increase over the rest
of fiscal year 2007 and in fiscal year 2008, Newratings.com
states, citing the analysts.

Headquartered in Las Vegas, Nevada, Bally Technologies, Inc.
(NYSE: BYI) -- http://www.BallyTech.com/-- designs,
manufactures, operates, and distributes advanced gaming devices,
systems, and technology solutions worldwide.  Bally's product
line includes reel-spinning slot machines, video slots, wide-
area progressives and Class II lottery and central determination
games and platforms.  Bally Technologies also offers an array of
casino management, slot accounting, bonus, cashless, and table
management solutions.  The company also owns and operates
Rainbow Casino in Vicksburg, Miss.  The company's South American
operations are located in Argentina.  The company also has
operations in Macau, China, and India.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
April 10, 2007, Standard & Poor's Ratings Services revised its
CreditWatch implication on its ratings for Bally Technologies
Inc. to developing from negative.  The corporate credit rating
on the company is 'B-'.  The ratings were initially placed on
CreditWatch on Sept. 9, 2005, and several rating actions have
occurred since the original CreditWatch listing.


BALLY TECHNOLOGIES: George Smith Reaffirms Buy Rating on Shares
---------------------------------------------------------------
Davenport & Company analyst George L Smith III has reaffirmed
his "buy" rating on Bally Technologies Inc.'s shares,
Newratings.com reports.

Newratings.com relates that the target price was increased to
US$30 from US$28.

Mr. Smith said in a research note that Bally Technologies'
reported revenues and adjusted earnings per share in the first
half of 2007 short of the estimates.

Mr. Smith told Newratings.com that Bally Technologies'
performance during the period represented a significant year-on-
year improvement.

Bally Technologies expects to achieve continued margin expansion
in the second half of 2007.  It also expects Gaming Operations'
growth to accelerate, Newratings.com notes, citing Davenport &
Company.

The earnings per share estimate for 2007 was decreased to
US$0.40 from US$0.49.  The estimate for 2008 was increased to
US$1.20 from US$1.11.

Headquartered in Las Vegas, Nevada, Bally Technologies, Inc.
(NYSE: BYI) -- http://www.BallyTech.com/-- designs,
manufactures, operates, and distributes advanced gaming devices,
systems, and technology solutions worldwide.  Bally's product
line includes reel-spinning slot machines, video slots, wide-
area progressives and Class II lottery and central determination
games and platforms.  Bally Technologies also offers an array of
casino management, slot accounting, bonus, cashless, and table
management solutions.  The company also owns and operates
Rainbow Casino in Vicksburg, Miss.  The company's South American
operations are located in Argentina.  The company also has
operations in Macau, China, and India.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
April 10, 2007, Standard & Poor's Ratings Services revised its
CreditWatch implication on its ratings for Bally Technologies
Inc. to developing from negative.  The corporate credit rating
on the company is 'B-'.  The ratings were initially placed on
CreditWatch on Sept. 9, 2005, and several rating actions have
occurred since the original CreditWatch listing.


BANCO COMAFI: Moody's Assigns Ba2 Global Currency Rating
--------------------------------------------------------
Moody's Investors Service assigned a Ba2 global local currency
rating to the US$100 million senior unsecured Argentine peso-
linked notes issued by Banco Comafi S.A., due 2012, issued under
the program of US$200 million.  The outlook on the local
currency debt rating is stable.

Moody's also assigned a Aa2.ar local-currency rating on the
national scale to the notes.

Moody's said that the Ba2 local-currency bond rating
incorporates Comafi's improved financial fundamentals, as well
as its modest market share of domestic deposits.  Moody's
assessment of a moderate probability of systemic support is
reflected by its Ba2 global local-currency deposit rating --
GLC.  Comafi's GLC deposit rating is based on the bank's Ba3
Baseline Credit Assessment and Moody's view of a moderate
probability of support from the system for its local currency
deposit obligations.

The notes are denominated and payable in U.S. dollars. However,
in the event of legal or regulatory restrictions, or any other
reason beyond Banco Comafi's control, payment on the notes can
be made in Argentine pesos.  Such option entails a local-
currency debt rating on the notes.

Banco Comafi is headquartered in Buenos Aires, Argentina, and it
had assets of ARS2.2 billion (US$0.7 billion) and deposits for
ARS1.4 billion (US$0.5 billion) as of March 2007.

Ratings Assigned:

  -- US$100 million senior notes and global local-currency debt
     rating: Ba2, stable outlook.


BIOMET INC: Moody's Confirms (P)B2 Corporate Family Rating  
----------------------------------------------------------
Moody's Investors Service confirmed the provisional ratings of
Biomet Inc. ((P)B2 Corporate Family Rating.)  The confirmation
is based on Moody's expectation that the consortium of equity
sponsors will finance the incremental purchase price (US$500
million) with common stock.  The rating action assumes that the
company will not use incremental debt -- including draws on its
revolving credit facility -- to fund a dividend in conjunction
with this incremental purchase price.  The rating outlook is
negative.  This concludes Moody's rating review that was
initiated on June 7, 2007.

The ratings are provisional, subject to the closing of the
transaction and receipt and review of final documentation.  
Moody's anticipates that the closing will occur prior to the end
of August 2007.

Ratings confirmed with a negative outlook:

Biomet, Inc.

  -- Corporate Family Rating at (P)B2

  -- US$350 Million Asset backed revolver at (P)Ba2, (LGD2, 14%)

  -- US$400 Million Secured cash flow revolver at (P)B1, (LGD3,
     36%)
  -- US$3.6 Billion Secured term loan at (P)B1, (LGD3, 36%)

  -- US$775 Million Unsecured senior notes at (P)B3, (LGD4, 63%)

  -- US$775 Million Unsecured PIK option notes at (P)B3, (LGD4,
     63%)

  -- US$1.015 Billion Unsecured subordinated notes at (P)Caa1,
     (LGD6, 93%)

  -- PDR at B2

  -- SGL-2

Moody's believes that Biomet's very high leverage and weak
financial strength and financial policy ratios - some of which
are positioned at the low-end of the "Caa" category - are a key
credit risk.  In particular, interest coverage is negligible and
the ability to repay debt with cash flow is extremely limited.
Further, the absence of financial covenants in the proposed bank
agreements provides less protection to creditors.  However, in
our opinion, the presence of external liquidity sources as well
as equity sponsors that have committed significant capital (of
about US$5.4 billion) provide greater assurance that a default
is unlikely within the next twelve months.  As a result, Moody's
believes that the (P)B2 Corporate Family Rating is appropriate
even though leverage (estimated at about 8.5 times pro forma
Debt/ EBITDA based on twelve months ended Feb. 28, 2007,
financial statements) and coverage measures (estimated at 1.2
times pro forma EBITA/interest) are more consistent with lower
ratings.

The methodology implied rating under Moody's Global Methodology
for the Medical Products & Device Industry based on pro-forma
financial statements for the twelve months ended Feb. 28, 2007,
is a "B1".  However, we believe that this degree of leverage is
not fully captured under the methodology.

The company recently filed financial statements including a
restated Form 10-K for the period ended May 31, 2006, as well as
Form 10-Qs for the quarters ended Aug. 31, 2006, Nov. 30, 2006,
and Feb. 28, 2007.  As anticipated, the auditors cited a
material weakness related to the backdating of stock options.  
However, Moody's believes that these restated financial
statements are not materially different from previous financial
statements.  The rating outlook remains negative, however,
reflecting Biomet's weak position in the B2 category due
primarily to Moody's concerns regarding extremely high debt
levels.  Moody's believes that the company will need to see
operating improvements as well as grow at industry rates in
order to meaningfully de-leverage over the next 12-24 months.

Biomet's SGL-2 rating reflects our expectation that despite weak
free cash flow, the company's liquidity should be solid,
supported by external liquidity.  Following the transaction,
Biomet is expected to have about US$750 million of capacity
under two secured bank revolvers.

Biomet Inc. and its subsidiaries design, manufacture, and market
products used primarily by musculoskeletal medical specialists
in both surgical and non-surgical therapy.  Headquartered in
Warsaw, Indiana, Biomet and its subsidiaries currently
distribute products in more than 100 countries, including the
Netherlands, Argentina and Korea.


CHINA SOUTHERN: Inks Strategic Partnership with Continental Air
---------------------------------------------------------------
China Southern Airlines has entered into a strategic partnership
with Continental Airlines involving frequent flyer and airport
lounge access and extensive code sharing, Thomson Financial
reports.

With the partnership, Larry Kellner, chairman and chief
executive officer of Continental Airlines said: "China Southern
is the right partner for us in China and we look forward to
welcoming them into the SkyTeam alliance in the very near
future."

Under the partnership, members of the two airlines' frequent
flyer programs, Continental's OnePass and ChinaSouthern's Sky
Pearl Club, will be able to earn and redeem miles on all flights
marketed and operated by the other carrier starting in
September, the report relates.  Reciprocal airport lounge access
for eligible customers will also begin when China Southern joins
SkyTeam, the groups said in a joint statement.

In November, the carriers plan to begin codesharing.

                    About China Southern

Headquartered in Guangzhou, China, China Southern Airlines Co
Ltd. -- http://www.cs-air.com/-- engages in the operation of
airlines, as well as in aircraft maintenance and air catering
operations in the People's Republic of China and
internationally.  It provides commercial airlines, cargo
services, logistics operations, air catering, utility service,
hotel operation, travel services, aircraft leasing, and Internet
services.

The airline flies to Spain, Argentina and the United States.

On May 1, 2006, Fitch Ratings downgraded China Southern Airlines
Company Limited's Foreign Currency and Local Currency Issuer
Default Ratings to B+ from BB-.


FORD MOTOR: Denies Plans to Build Slovak Plant; Eyes Romania
------------------------------------------------------------
Ford Motor Company has dismissed a report by Slovak daily
Hospodarske Noviny saying the U.S. carmaker was considering
building a new assembly plant in an industrial park near the
eastern Slovak town of Kechnec, where a Ford-Getrag joint
venture already makes gearboxes, Reuters relates.

The paper also quoted the Kechnec mayor as saying he was in
talks with a renowned producer to make higher-class cars in the
east, Reuters notes.  The investment should be worth tens of
billions of crowns and create hundreds of jobs, the mayor said.

Ford of Europe Spokesman told Reuters the report was
"speculative" and they "cannot confirm anything like that
(story)."

The state investment agency SARIO has also denied any
negotiations with Ford about a new plant in Slovakia, which has
been a magnet for investment inflows in the auto sector.

Mr. Nissen reiterated Ford's interest in an upcoming
privatization of Romania's Automobile Craiova, Reuters states.

"Eastern Europe is certainly the area where markets are growing
and we have to consider how to increase our presence there.  We
are preparing a bid for the plant in Romania, which we are also
referring to as eastern Europe," Mr. Nissen said.

Mr. Nissen did not disclose details of the bid, but said that
Ford was looking to expand the plant, Reuters says.  The
Romanian privatization agency AVAS had previously warned that
the buyer would have to ensure a minimum yearly output of
300,000 cars.

General Motors Corp. and Russian Machines, a unit of one of the
largest privately held conglomerates in Russia, have also
expressed interest in the Romanian plant, Reuters reveals.  The
deadline for binding bids is July 5, 2007.

                      About Ford Motor Co.

Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures or distributes automobiles  
in 200 markets across six continents.  With about 260,000
employees and about 100 plants worldwide, the company's core and
affiliated automotive brands include Ford, Jaguar, Land Rover,
Lincoln, Mercury, Volvo, Aston Martin, and Mazda.  The company
provides financial services through Ford Motor Credit Company.

The company has operations in Japan in the Asia Pacific region.
In Europe, the Company maintains a presence in Sweden, and the
United Kingdom. The Company also distributes its brands in
various Latin-American regions, including Argentina and Brazil.

                          *    *    *

As reported in the Troubled Company Reporter on Dec. 12, 2006,
Standard & Poor's Ratings Services affirmed its 'B' bank loan
and '2' recovery ratings on Ford Motor Co.

As reported in the Troubled Company Reporter on Dec. 7, 2006,
Fitch Ratings downgraded Ford Motor Company's senior unsecured
ratings to 'B-/RR5' from 'B/RR4'.

As reported in the Troubled Company Reporter on Dec. 6, 2006,
Moody's Investors Service assigned a Caa1, LGD4, 62% rating to
Ford Motor Company's $3-billion of senior convertible notes due
2036.


PLATINUM PRODUCCIONES: Claims Verification Deadline Is Aug. 13
--------------------------------------------------------------
Hector Ricardo Calle, the court-appointed trustee for Platinum
Producciones S.R.L.'s bankruptcy proceeding, verifies creditors'
proofs of claim until Aug. 13, 2007.

Mr. Calle will present the validated claims in court as
individual reports on Sept. 25, 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 Platinum Producciones 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 Platinum
Producciones' accounting and banking records will be submitted
in court on Nov. 7, 2007.

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

The debtor can be reached at:

         Platinum Producciones S.R.L.
         Avenida Cordoba 652
         Buenos Aires, Argentina

The trustee can be reached at:

         Hector Ricardo Calle
         Lavalle 1528
         Buenos Aires, Argentina


RED HAT: Names Andrew Hu President of Greater China Operations
--------------------------------------------------------------
Red Hat Inc. has appointed Andrew Hu as President of Red Hat
Operations in Greater China.  Mr. Hu will be responsible for
overall operations, business development, marketing and sales in
the region and will report to the President of Red Hat Asia-
Pacific Operations, Gery Messer.

Most recently, Mr. Hu held the position of President, Asia
Pacific at Wyse, a global leader in thin client computing
solutions.  In this role, Mr. Hu oversaw Wyse's corporate
strategy including the building of thin client hardware and
software solutions for deployment in the Asia Pacific market,
with a particular emphasis on the market requirements of China,
Korea and Japan.

With more than 20 years of professional IT management experience
in North America and Asia, Mr. Hu also served as the Director of
Greater China at Network Appliance, a world leader in unified
storage solutions, where he was responsible for driving the
company's expansion in China, Hong Kong, Taiwan and South Korea.  
Mr. Hu also previously held a number of roles at Oracle China,
including Managing Director with overall responsibility for the
company's sales and support operations in China.

"Asia Pacific is a key market for Red Hat and we are committed
to investing in resources to continue growing our presence in
this region," said Gery Messer, President of Red Hat Asia-
Pacific Operations.  "With his strong management background,
Andrew Hu's appointment to the team will ensure Red Hat is well-
placed to take advantage of the rapidly expanding market
prospects that exist for open source."

"It is a very exciting time for open source and I look forward
to helping Red Hat realize its potential in the Greater China
market," said Mr. Hu.  "With organizations under greater
pressure to achieve more with less, there are now more reasons
than ever for IT decision makers to consider open source for
their mission-critical systems."

Mr. Hu holds a Master's degree in business from Carnegie Mellon
University and an undergraduate degree from Virginia Polytechnic
University.  He will be based in Beijing.

Headquartered in Raleigh, North Carolina Red Hat, Inc. --
http://www.redhat.com/-- is an open source and Linux provider.   
Red Hat provides operating system software along with
middleware, applications and management solutions.  Red Hat also
offers support, training, and consulting services to its
customers worldwide and through top-tier partnerships.

The company has offices in Singapore, Germany, and Argentina,
among others.

                        *     *     *

As reported on Nov. 3, 2006, Standard & Poor's Ratings Services
revised its outlook on Raleigh, North Carolina-based operating
systems provider Red Hat Inc. to stable from positive, and
affirmed its 'B+' corporate credit rating.


TELECOM PERSONAL: Phasing Out Time Division Multiple Access
-----------------------------------------------------------
Telecom Personal Marketing Director Guillermo Rivaben told
Business News Americas that it is phasing out its Time Division
Multiple Access Technology in 2007.

Telecom Personal would also have almost all of its clients using
the Global System for Mobile Communications by the end of this
year, BNamericas says, citing Mr. Rivaben.  The firm also aims
to have over 11 million subscribers.

According to BNamericas, Telecom Personal has about 10 million
subscribers, with 91% using Telecom Personal's GSM platform and
the remainder on TDMA.

Mr. Rivaben commented to BNamericas, "I believe by the end of
the year the use of TDMA technology will be very marginal.  Due
to current high mobile penetration, we are in a phase where it
is more important to increase revenues offering new services to
existing clients rather than add new clients.  We have the
highest ARPU [average revenue per user] of any operator in
Argentina and this is mainly due to the launch of new innovative
services in the last two years.  Today, value added services
account for 27% of our revenues.  Five years ago this segment
represented only 5% of total revenues."

Telecom Personal's ARPU is ARS40, BNamericas notes, citing Mr.
Rivaben.  The company official also expects the penetration of
mobile telephony in the Argentine market to reach up to 90% by
year-end.

Telecom Personal eradicated handset subsidies in the prepaid
segment and keeps subsidies only for postpaid subscribers.  The
firm is seeing an expansion in the postpaid segment mainly
boosted by Cuentas Claras, a "hybrid product that combines
postpaid and prepaid plans," Mr. Rivaben told BNamericas.

Mr. Rivaben said that Telecom Personal represents 70% of
BlackBerry smartphones sold in Argentina, according to the
report.

"We do not only sell BlackBerry devices but we develop special
applications for this device," Mr. Rivaben told BNamericas.

Telecom Personal is the wireless provider of Telecom Argentina
SA, providing services in Argentina and Paraguay over a GSM
network.  The company has 7.7 million users, with an estimated
30% market share in Argentina and a customer mix of 66% prepaid
and 34% postpaid as of June 30, 2006.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Nov. 13, 2006, Fitch Ratings affirmed Telecom Personal SA's
foreign and local currency Issuer Default Rating at 'B', and the
senior unsecured at 'B/RR4', and revised the Rating Outlook of
the international scale IDRs to Positive from Stable.
Approximately US$200 million in debt is affected by the rating
action.  Fitch has also upgraded the national scale rating of
Personal to 'A(arg)' from 'BBB+(arg)' with a stable rating
outlook.


VERIFONE INC: Parent Closes US$316.25 Mil. Senior Notes Offering
----------------------------------------------------------------
VeriFone Holdings, Inc. has completed its placement of an
aggregate of US$316.25 million principal amount of 1.375% Senior
Convertible Notes due 2012, which includes the initial
purchasers' exercise in full of their option to purchase
additional notes.  The offering was made through offerings to
qualified institutional buyers pursuant to Rule 144A under the
Securities Act of 1933, as amended.

In connection with the offering, VeriFone entered into
convertible note hedge transactions with affiliates of the
initial purchasers (the counterparties) that generally are
expected to reduce the potential equity dilution upon conversion
of the notes, including those being sold in connection with the
overallotment option.  VeriFone also has sold warrants to those
counterparties, which could have a dilutive effect on its
earnings per share.  The warrants have an initial strike price
of US$62.356 per share, which may reset, if higher, to a 70%
premium over the market price of VeriFone's common stock
determined in approximately six months from the pricing of the
offering.

VeriFone estimates that the net proceeds from the offering,
after deducting the initial purchasers' discounts and estimated
offering expenses payable by VeriFone will be approximately
US$307.77 million.  VeriFone intends to apply the net proceeds
from the offering after deducting the net costs of its
convertible note hedge and warrant transactions to repay in part
the senior secured bank debt of VeriFone's principal operating
subsidiary, VeriFone, Inc.

VeriFone Inc. is headquartered in Santa Clara, California, and
is a global market leader in the development and sale of point-
of-sale electronic payment systems.  The company has operations
in Argentina, Australia, Brazil, China, France, India, Malaysia,
Poland, the United Kingdom, the United States, among others.

                        *     *     *

As reported in the Troubled Company Reporter on Sept. 29, 2006,
Moody's Investors Service has affirmed the Corporate Family
Rating of B1 of VeriFone and revised the rating outlook to
stable from negative.  At the same time, Moody's assigned
ratings to new bank credit facilities that VeriFone will use to
finance its pending acquisition of Lipman Electronic Engineering
Ltd.


* BUENOS AIRES: Secures US$45-Million Loan from Andean Dev't
------------------------------------------------------------
The Andean Development Corporation - CAF -- said in a statement
that it has ratified a US$45-million loan to Buenos Aires for
the improvement of power distribution in the northern region of
the province.

CAF told Business News Americas that the project will be
conducted over two years.  It will be for the improvement of
residential and commercial confidence in the electric system,
reduction of restrictions due to excessive demand and guarantee
new industries to operate in the region.

CAF said in a press release that the total project will cost
about US$68.9 million with the corporation's funds financing
65%.  Buenos Aires will fund 35% of the project.

BNamericas notes that the loan will be guaranteed by the
Argentine government.

According to CAF's statement, the funds will be used to:

          -- finance construction,
          -- purchase transmission lines and transformers,
          -- conduct an environmental impact study, and
          -- carry out an external audit.

The loan was the first of its kind made by CAF to an Argentine
provincial government, CAF's head Enrique Garcia told
BNamericas.

CAF would continue providing such loans to regional governments.  
CAF had ratified similar loans in Brazil and Ecuador in the May,
BNamericas states, citing a CAF spokesperson.

As reported in the Troubled Company Reporter-Latin America on
April 12, 2007, Moody's assigned a rating of B3 (Global Scale,
foreign currency), with stable outlook, to the planned offering
of up to US$400 million senior unsecured notes by the Province
of Buenos Aires.  




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


MIRANT CORP: Closes Philippine Asset Sale for US$3.2 Billion
------------------------------------------------------------
Mirant Corporation has completed the previously announced sale
of its Philippine business to a consortium comprised of The
Tokyo Electric Power Company, Incorporated and Marubeni
Corporation.  The net proceeds to Mirant after transaction costs
and the repayment of US$642 million of debt were US$3.215
billion.

As reported in the Troubled Company Reporter-Latin America on
Dec. 14, 2006, Japanese trading giant Marubeni Corp. and Tokyo
Electric Power Co. will each purchase a 50% stake in Mirant Asia
Pacific, an independent power producer with 2,203 megawatts in
the Philippines.

Under the sale agreement, the companies will acquire two coal-
fired power plants and a 20% stake in natural-gas-fired power
plant, which account for about 20% of power assets in the Luzon
area, including Manila.

Headquartered in Atlanta, Georgia, Mirant Corporation (NYSE:
MIR) -- http://www.mirant.com/-- is an energy company that
produces and sells electricity in North America, the Caribbean,
and the Philippines.  Mirant's investments in the Caribbean
include three integrated utilities and assets in Jamaica, Grand
Bahama, Trinidad and Tobago and Curacao.  Mirant owns or leases
more than 18,000 megawatts of electric generating capacity
globally.

Mirant Corporation filed for chapter 11 protection on
July 14, 2003 (Bankr. N.D. Tex. 03-46590), and emerged under the
terms of a confirmed Second Amended Plan on Jan. 3, 2006.
Thomas E. Lauria, Esq., at White & Case LLP, represented the
Debtors in their successful restructuring.  When the Debtors
filed for protection from their creditors, they listed
US$20,574,000,000 in assets and US$11,401,000,000 in debts.  The
Debtors emerged from bankruptcy on Jan. 3, 2006.  Mirant NY-Gen
LLC, Mirant Bowline LLC, Mirant Lovett LLC, Mirant New York
Inc., and Hudson Valley Gas Corporation, were not included and
have yet to submit their plans of reorganization.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
May 22, 2007, the ratings of Mirant Corp., with an Issuer
Default Rating of 'B+' by Fitch, and its subsidiaries remain on
Rating Watch Negative following the company's announced plans to
pursue alternative strategic options including a possible
purchase of Mirant by a third party.

These ratings remain on Watch Negative:

  Mirant Corp

    -- Issuer Default Rating 'B+'.

  Mirant Mid-Atlantic LLC

     -- Issuer Default Rating 'B+';
     -- Pass-through certificates 'BB+/RR1'.

  Mirant North America, Inc.

     -- Issuer Default Rating 'B+';
     -- Senior secured bank debt 'BB/RR1';
     -- Senior unsecured notes 'BB-/RR1'.

  Mirant Americas Generation, LLC

     -- Issuer Default Rating 'B+';
     -- Senior unsecured notes 'B/RR5'.




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

     -- by resolution dissolving the company.

The liquidators can be reached at:

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


BELL ATLANTIC: Final General Meeting Is Set for July 10
-------------------------------------------------------
Bell Atlantic (Bermuda) Holdings Ltd.'s final general meeting
will be at 9:00 a.m. on July 10, 2007, or as soon as possible,
at the liquidator's place of business.

Bell Atlantic's 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


BMS ALPHA: Proofs of Claim Filing Is Until July 11
--------------------------------------------------
BMS Alpha Bermuda Manufacturing Finance Ltd.'s creditors are
given until July 11, 2007, to prove their claims to Nicholas
Hoskins, 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.

BMS Alpha's shareholders agreed on May 31, 2006, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.

The liquidator can be reached at:

         Nicholas Hoskins
         Wakefield Quin, Chancery Hall
         52 Reid Street, Hamilton
         Bermuda


BMS ALPHA: Final General Meeting Is Set for July 24
---------------------------------------------------
BMS Alpha Bermuda Manufacturing Finance Ltd.'s final general
meeting will be at 9:00 a.m. on July 24, 2007, or as soon as
possible, at the liquidator's place of business.

BMS Alpha's 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:

          Nicholas Hoskins
          Wakefield Quin, Chancery Hall
          52 Reid Street, Hamilton
          Bermuda


MARTIN CURRIE: Sets Final General Meeting for July 2
----------------------------------------------------
Martin Currie Predecessor Fund Ltd., fka Martin Currie China "A"
Fund Limited's final general meeting is scheduled on
July 2, 2007, at 10:00 p.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

     -- by resolution dissolving the company.

The liquidator can be reached at:

         Peter Martin
         Mello Jones & Martin
         Hamilton, Bermuda


SCOTTISH RE: Hires Dan Roth as Executive Vice President & CRO
-------------------------------------------------------------
Scottish Re Group Limited has appointed Dan Roth as Executive
Vice President and Chief Restructuring Officer.  In this newly
created role, Mr. Roth will lead the Scottish Re transition
program focused on operational effectiveness.  He will be a
member of the Scottish Re Executive Committee, allowing him to
help drive operational efficiencies between the Company's
business segments.

Paul Goldean, Chief Executive Officer, noted, "Dan has an
impressive background focused primarily on process improvement
and operational effectiveness.  We are pleased to welcome him as
a member of our executive team and look forward to his
contributions to the Company."

Prior to joining Scottish Re, Mr. Roth spent the last year with
Cerberus Capital Management L.P. on its operations team focused
on financial and operational due diligence in the insurance,
media, and information technology industries.  His previous
experience includes 10 years with the General Electric Company,
most recently as the Manager of Finance for GE Money's personal
loan business in Japan.  Mr. Roth also led GE Money's global
capital allocation program in Stamford, CT, implementing risk
based capital allocation methodologies across its portfolio of
consumer receivables.  Prior to that, Mr. Roth was a Senior
Manager for GE's Corporate Audit Staff, leading teams
responsible for financial and operational reviews of GE's
businesses in North America and Asia.

Mr. Roth is a graduate of GE's Information Management Leadership
Program and received a BS in Management Information Systems from
the University of Dayton's school of business.

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

As reported in the Troubled Company Reporter-Latin America on
June 7, 2007, Fitch Ratings has upgraded Scottish Re Group
Ltd.'s Issuer Default Rating to 'BB-' from 'B+' and the Insurer
Financial Strength ratings of its primary operating subsidiaries
to 'BBB-' from 'BB+'.  The ratings have been removed from Rating
Watch Positive; the Rating Outlook is Stable.

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

As reported in the Troubled Company Reporter-Latin America on
May 10, 2007, A.M. Best Co. has upgraded the financial strength
rating to B+ (Good) from B (Fair) and the issuer credit ratings
to "bbb-" from "bb+" for the primary operating insurance
subsidiaries of Scottish Re Group Limited (Cayman Islands).

A.M. Best has also upgraded the ICR to "bb-" from "b" and the
various debt ratings of Scottish Re.




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


COEUR D'ALENE: Can Conduct Bolnisi Due Diligence Until July 3
-------------------------------------------------------------
Coeur d'Alene Mines Corporation disclosed that Bolnisi has
agreed to extend the company's due diligence period to July 3
under the Merger Implementation Agreement relating to Coeur's
proposed acquisition of Bolnisi, which is part of a larger
transaction that also would result in Coeur's acquisition of
Palmarejo Silver and Gold Corporation.

Coeur and Bolnisi previously agreed to extend Coeur's due
diligence period by 14 days to June 22, 2007.

Coeur d'Alene Mines Corp. (NYSE:CDE) (TSX:CDM) --
http://www.coeur.com/-- is the world's largest primary silver
producer, as well as a significant, low-cost producer of gold.
The company has mining interests in Nevada, Idaho, Alaska,
Argentina, Chile, Bolivia and Australia.

                        *     *     *

Coeur d'Alene Mines Corp.'s US$180 Million notes due
Jan. 15, 2024, carry Standard & Poor's B- rating.


PETROLEO BRASILEIRO: Court Says No to Plant Sale Suspension
-----------------------------------------------------------
The Brazilian Supreme Court has denied an injunction plea from
opposition party Partido da Social Democracia Brasileira to halt
the sale of state-owned oil firm Petroleo Brasileiro SA's plants
to Bolivia, Business News Americas reports.

The court said in a statement posted on its Web site that PSDB
asked for the suspension of acts or judicial acts aiming to
prepare or effectively transfer Petroleo Brasileiro's rights,
operations and goods in Bolivia.

The court said one of its reasons for rejecting the opposition's
request is that the transaction was private and that Brazilian
President Luiz Inacio Lula da Silva is not responsible for the
decision.  The court said that according to the Brazilian
constitution, firms like Petroleo Brasileiro -- which is partly
private and partly state-owned -- don't have to submit corporate
decisions to congress, BNamericas states.

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.




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


AMERICAN AIRLINES: Lloyd Hill Voted as Pilots' Union President
--------------------------------------------------------------
Pilots of American Airlines Inc. voted out Allied Pilots
Association incumbent president Ralph Hunter in a recent
election, according to various reports.

The pilots were disappointed over the union's proposed 30.5%
wage increase for next year.

Miami-based pilot and challenger Lloyd Hill, who received 2,393
more votes than his opponent, said that the 30.5% increase "is
not nearly enough."

Sources say that starting July 1, Mr. Hill and two other top
officials, Tom Westbrook and Bill Haug, will seek for a higher
pay increase for next year.

According to various reports, Mr. Hunter and other union leaders
were charged to be too friendly with the management, urging the
employees to help the company boost productivity with little
pay.  Yet, when the airline recovered, it gave stock bonuses for
top executives and other key employees in April 2006,
approaching US$100 million in value, and in April 2007, worth
more than US$160 million.

Dallas-based pilot Tom Westbrook defeated Vice President Sam
Bertling by an even larger margin, and San Francisco-based pilot
Bill Haug defeated incumbent Secretary-Treasurer Jim Eaton, the
papers recount.

                   About American Airlines Inc.

Based in Fort Worth, Texas, American Airlines Inc., a wholly
owned subsidiary of AMR Corp., operates the largest scheduled
passenger airline in the world with service throughout North
America, the Caribbean, Latin America, Europe and Asia.  
American Airlines flies to Belgium, Brazil, Japan, among others.  

                          *     *     *

As reported in the Troubled Company Reporter on May 25, 2007,
Standard & Poor's Ratings Services assigned its 'CCC+' rating to
American Airlines Inc.'s (B/Positive/--) US$125 million
Dallas/Fort Worth International Airport special facility revenue
refunding bonds, series 2007, due 2030.  The bonds are
guaranteed by American's parent, AMR Corp. (B/Positive/B-2), and
are secured by payments made by American to the airport
authority.  Proceeds are being used to refund the outstanding
revenue bonds, series 1992 (rated 'CCC+'), whose rating is
withdrawn.


ARMOR HOLDINGS: CFIUS Gives Nod on BAE Systems Merger
-----------------------------------------------------
The United States Department of the Treasury, on June 21, 2007,
notified Armor Holdings, Inc., that the Committee on Foreign
Investment in the United States completed its review of the
proposed merger of Jaguar Acquisition Sub, Inc., and a wholly
owned subsidiary of BAE Systems, Inc., with and into Armor
pursuant to an Agreement and Plan of Merger among Armor, BAE
Systems and Merger Sub, dated as of May 7, 2007.

CFIUS determined that there were no issues of national security
to warrant an investigation under the Exon-Florio Amendment that
provides authority to the U.S. President to suspend or prohibit
any foreign acquisition, merger or takeover of a U.S.
corporation that is determined to threaten the national security
of the United States.  Therefore, CFIUS concluded action under
the Exon-Florio Amendment with respect to the merger.

Completion of this CFIUS review was one of the conditions to the
consummation of the merger contained in the Merger Agreement.  
The merger continues to be subject to, among other conditions,
the approval of the stockholders of Armor and compliance with
The Hart-Scott-Rodino Antitrust Improvements Act of 1976, as
amended.

On June 18, 2007, with Armor's consent, BAE Systems voluntarily
withdrew its HSR filing and refiled in order to extend the
initial HSR review period.

Armor expects the merger to close during the third quarter of
2007.

Headquartered in Jacksonville, Florida, Armor Holdings, Inc.
(NYSE: AH)-- http://www.armorholdings.com/-- manufactures and   
distributes security products and vehicle armor systems for the
law enforcement, military, homeland security, and commercial
markets.

The company has operations in Australia in the Asia Pacific, in
England for Europe and Brazil for its Latin American operations.
                          *     *     *

Armor Holdings, Inc.'s 8-1/4% Senior Subordinated Notes due 2013
carry Moody's Investors Service's B1 rating and Standard &
Poor's B+ rating.


BANCO BMG: S&P Ups Long-Term Counterparty Credit Rating to BB-
--------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term
counterparty credit rating on Banco BMG S.A. to 'BB-' from 'B+'.  
The rating was removed from CreditWatch Positive where it was
placed June 11, 2007.  The outlook is stable.
     
The rating action results from a more favorable monetary and
investment environment and the deepening of capital markets in
Brazil, including Banco BMG's access to more diversified
funding.  S&P expect Banco BMG to benefit from further increase
in the origination of payroll-discount loans.
     
Banco BMG benefits from a well-defined and successful strategy
as a niche bank with good execution based on technology and
distribution capabilities.

"We expect Banco BMG to maintain good asset quality indicators.  
The ratings on Banco BMG incorporate the risks of significant
product concentration and our opinion that there will be margin
pressure on payroll discount loans in the medium to long term,"
said Standard & Poor's credit analyst Daniel Araujo.
     
Banco BMG has been able to maintain good liquidity management
and benefited from alternative sources of funding in recent
years, including the issuance of bonds in the international
market, in addition to the use of securitization through
receivables funds and sales of loans to financial institutions.  
These actions offset the decline of domestic funding in the form
of deposits both in 2004 and 2005, although the bank's funding
policy, even before 2004, was to reduce the importance of
deposits and replace them with alternative sources in the
domestic and international markets.
     
Banco BMG has significant concentration in the payroll discount
loans, where it maintains a leading position supported by its
pioneer technology and distribution network.  While the bank is
very successful in its niche, it is viewed as more vulnerable to
a potential margin reduction in the medium to long term in
comparison with larger and more diversified players that are
currently rated in the 'BB' category or higher, because of its
more limited access to cheap funding.  Banco BMG closed loan
sale agreements with different counterparties and has been able
to issue MTNs in the foreign market, which has sustained such
strong lending growth.
     
The stable outlook reflects our expectations that Banco BMG will
benefit from the maintenance of its core competencies, with
further growth in its niche operations in payroll discount
loans, maintaining asset quality and capitalization at prudent
levels.
     
The outlook may be revised to negative or the ratings may be
lowered if there is a significant worsening in asset quality or
if profitability levels drop substantially on an adjusted basis
(excluding sales of loan portfolio).

Banco BMG is the banking arm of Grupo BMG, which also has real
estate, food manufacturing and agro industry holdings.  The bank
is a niche player focused on loans to civil servants, with
repayments taken monthly from payrolls.  BMG operates mainly
through in-house representatives in state companies.  It also
offers leasing and asset management services.


BANCO CRUZEIRO: Raises BRL560 Mil. from Initial Public Offering
---------------------------------------------------------------
Banco Cruzeiro do Sul said in a statement that it has raised
about BRL560 million from its initial public offering.

Business News Americas relates that Banco Cruzeiro sold:

          -- 36.1 million preferred shares for BRL15.50 per
             piece,

          -- 27.7 million in the initial offering, and

          -- 8.43 million in a secondary offering.

Banco Cruzeiro expected to get up to BRL17.50 per share, the
report says.  The bank could sell 5.42 million shares.

UBS Pactual managed the transaction, with the help of ABN Amro
Real and the investment banking unit of federal Banco do Brasil.

Banco Cruzeiro starts trading on the Sao Paulo stock exchange
Bovespa on June 26, 2007, under the ticker CZRS4, BNamericas
states.

Headquartered in Sao Paulo, Brazil, Banco Cruzeiro do Sul's core
business is lending to civil servants, with payments
automatically deducted from payrolls.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Sept. 4, 2006, Moody's Investors Service upgraded Banco Cruzeiro
do Sul SA's long-term foreign currency deposits to Ba3 from Ba1.
Moody's said the rating outlook is stable.


BANCO DAYCOVAL: S&P Ups Rating to BB- & Removes from Watch
----------------------------------------------------------
Standard & Poor's Ratings Services removed its long-term
counterparty credit rating on Banco Daycoval S.A. from
CreditWatch Positive, where it was placed on June 11, 2007, and
raised the rating to 'BB-'.  At the same time, S&P affirmed its
'B' short-term counterparty credit rating on the bank.  The
outlook is stable.
      
"The upgrade reflects macroeconomic environment improvements,
including better access to funding alternatives in Brazil's
growing capital markets," said Standard & Poor's credit analyst
Tamara Berenholc.  With greater stability in the local economy
and consistent growth within the local capital markets,
Daycoval's creditworthiness has improved because we expect the
bank's funding to be more resilient and to sustain its solid
track record in credit origination.  Daycoval's profitability
levels and good asset quality indicators are above those of its
peers.
    
The stable outlook incorporates our expectation that the bank
will be able to implement successfully its growth strategy and
sustain its good asset quality indicators and profitability.  
The outlook also assumes Daycoval will maintain good liquidity.
     
The outlook could be revised to positive or the rating could be
raised depending on the bank's capacity to increase its market
share in its niche segment; this would have to be done without
damaging the bank's strong asset quality indicators and by
maintaining profitability levels above those of its peers.  Such
a positive rating action would also depend on the bank's ability
to grow its funding base while maintaining strong liquidity.  On
the other hand, the stable outlook could be revised to negative
or ratings could be lowered if bank's asset quality ratios
deteriorate significantly, if the bank's liquidity and funding
are pressured, or if profitability levels are affected
significantly by the competitive market.

Banco Daycoval, a Brazilian midsize bank, was founded in 1989.  
It operates 15 branches concentrated in the south and southeast
of the country.  Its main business is commercial lending to
small and medium enterprises, with a diversified portfolio in
agribusiness, automotives, commerce, foods, financial services,
general services, manufacturing, and textiles.  Daycoval
established its trade finance department in 1995 to satisfy the
increasing demand for trade finance instruments.


BANCO FIBRA: S&P Ups Rating to BB- & Removes from Credit Watch
--------------------------------------------------------------
Standard & Poor's Ratings Services removed its long-term
counterparty credit rating on Banco Fibra S.A. from CreditWatch
Positive, where it was placed on June 11, 2007, and raised the
rating to 'BB-' from 'B+'.  At the same time, S&P affirmed its
'B' short-term counterparty credit rating on the bank.  The
outlook is stable.
      
"The upgrade reflects macroeconomic environment improvements,
including better access to funding alternatives in Brazil's
growing capital markets.  With the greater stability in the
local economy and consistent growth in the local capital
markets, Banco Fibra benefits from better and more resilient
funding access.  We expect the bank to sustain its good market
position while increasing profitability and maintaining good
asset quality," said Standard & Poor's credit analyst Tamara
Berenholc.
     
The ratings incorporate Fibra's challenge of building a more
diversified funding base, given the natural concentration and
wholesale character of its deposits; the fierce competition
affecting most banks operating in the midsize companies segment;
and potentially higher delinquency ratios in the future, given
expected increases in consumer finance loans.  These risk
factors are tempered by the bank's strong asset quality
indicators, its good track record and expertise in the corporate
and middle-market segments, improved profitability, and the
benefits of the implicit support of its shareholder.
     
The stable outlook reflects S&P's expectation that the bank will
be able to sustain its good asset quality indicators at a rate
of less than 4%, while growing its funding base and maintaining
adequate capitalization and profitability.  The outlook could be
revised to positive or the ratings could be raised depending on
the bank's ability to successfully deliver a consistent growth
strategy for the longer term.  Such a positive rating action
would also depend on the bank's efforts to build a more
diversified funding base, while sustaining an adequate liquidity
position and improving profitability and capitalization.  On the
other hand, the outlook could be revised to negative or the
ratings could be lowered if there is a significant deterioration
in Banco Fibra's asset quality ratios (vis-a-vis the market
average levels); if the bank's liquidity and funding are
pressured; or if it fails to show more robust profitability
levels.

Brazilian bank Banco Fibra S.A. is a commercial midsize bank
with total assets of BRL10.3 billion (US$4.7 billion) as of
June 2006.  Despite its relatively small market share, Banco
Fibra is among the top banks operating in the small corporates
and middle-market companies segment. Banco Fibra is the
financial arm of a large traditional conglomerate in Brazil,
owned by the Steinbruch family, with important operations in the
textile (Vicunha T^xtil; not rated), steel (Companhia
Siderurgica Nacional; BB/Stable/--), and gas (CEGAS; not rated)
sectors.


BANCO INDUSTRIAL: S&P Lifts Counterparty Credit Rating to BB-
-------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term
counterparty credit rating on Banco Industrial e Comercial S.A.
(BicBanco) to 'BB-' from 'B+'. The rating was removed from
CreditWatch Positive where it was placed June 11, 2007.  At the
same time, S&P assigned our 'B' short-term counterparty credit
rating to the bank.  The outlook is stable.
      
"The rating action reflects the benefits from an improving
macroeconomic environment and deepening capital markets in
Brazil, including BicBanco's better access to funding with more
alternatives.  We expect the loan portfolio to increase and the
bank to show a more resilient funding profile, including a
capital increase through its IPO," said Standard & Poor's credit
analyst Daniel Araujo.
     
BicBanco has a well-defined strategy and good asset quality
indicators that benefit from the management of short-term,
secured loans to middle-market companies and adequate liquidity
management.  The bank's main risks include a potential decline
in margins and the challenge to gain scale.  The bank is going
though an IPO that should improve its capitalization ratio that
was only adequate until December 2006.
     
S&P expects BicBanco to maintain its focus on lending to midsize
companies.  Similarly to other banks that chose to operate in
this segment, BicBanco may face a decline in margins in the
coming years due to the combination of fierce competition in the
market and improvements in the economic environment.  In this
scenario, the main challenge is the increase in the volume of
operations.  Although capitalization is acceptable for
regulatory purposes, it is relatively weak compared to that of
peers.
     
The stable outlook reflects S&P's expectations that BicBanco
will maintain a consistent approach to credit risk management,
and credit granting policies and procedures in particular, so
that the growth in the loan portfolio should not cause
deterioration of asset quality indicators.  S&P also expects the
maintenance of prudent liquidity management and gradual
strengthening of the bank's capital base in the medium term.
     
The outlook may be revised to negative or the rating may be
lowered if there is significant deterioration in asset quality
indicators, with the ratio of nonperforming loans to total loans
exceeding 6% or in the event of decline in profitability levels
as measured by the ROAA below 1%.

BICBANCO is headquartered in Sao Paulo, Brazil.  It had total
assets of BRL6.7 billion and equity of BRL505 million in
December 2005.


BANCO INDUSVAL: S&P Affirms B+/B Counterparty Credit Rating
-----------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B+/B'
counterparty credit rating on Banco Indusval S.A. (Indusval).  
The ratings were removed from CreditWatch Positive where they
were placed on June 11, 2007.  The outlook is stable.
      
"The ratings reflect the challenge of searching for a lower cost
and diversified funding base, and to gain scale to minimize the
pressure on Indusval's profitability, given spread reductions.  
These credit risk factors are offset by Indusval's good position
as a niche bank in the middle-market segment, relying on the
agility of its decision process and strong business knowledge;
its good track record regarding credit quality, which is
supported by the bank's expertise in using receivables as
collateral; and the bank's strong liquidity position and good
profitability," said Standard & Poor's credit analyst Tamara
Berenholc.
     
The stable outlook incorporates S&P's expectation that the bank
will be able to sustain its competitive position in the middle-
market segment, while keeping asset quality indicators under
control and ROA in the 1.5%-2% range.  It also incorporates the
bank's efforts to maintain a good liquidity ratio.
     
The outlook could be revised to negative or the ratings could be
lowered if there is a significant deterioration on Indusval's
asset quality ratios (NPL ratios above 4%-5%) or if its
liquidity, funding, and capital are pressured.  A positive
rating action would depend on the bank's success in increasing
significantly its market position despite competition, while
reducing the natural concentration risk of its assets and
funding.  It would also depend on the bank's ability to manage
adequately its credit risk and profitability ratios in the 2% to
2.5% range.

Banco Indusval S.A., the founder of the civil construction
company Ciampolini & Ribeiro, was established in 1954.  In 1967,
to diversify business, the partners began to operate on the
financial market and in 1972 acquired Indusval S.A. Brokerage
House, whose performance made it a success on the Stock Exchange
and the Brazilian Mercantile and Futures Exchange, gaining the
confidence and respect of the market.  In 1991, this course of
action led to the opening of the Indusval Bank, controlled by
the Ciampolini and Ribeiro families.  Their 20 years of
experience in the stock market with a team specialized in the
banking market served as a base for the operation.


BANCO NACIONAL: Antonio de Castro to Take Senior Advisor Role
-------------------------------------------------------------
Professor Antonio Barros de Castro has been invited by president
Luciano Coutinho to take on the position of senior advisor to
BNDES in the formulation of strategies for the bank and for the
Brazilian Government.  In this position, the professor will be
providing special consultancy to the ministry of Finance, Guido
Mantega.

Mr. Castro will leave the function of director of the Planning
area to be fully dedicated to the formulation of strategies for
the Country's economic development.  In the position of senior
advisor, he will further perform institutional functions,
representing the Bank and its president, and participate in
meetings of the Board of Directors when strategic matters are
part of the agenda.  The professor shall also develop studies of
national interest, such as:

   -- the development of global economy under the impact of the
      Chinese economy;

   -- the potential for development of the Brazilian GDP
      (potential GDP) and

   -- the outlook for biofuel development in Brazil, in special
      ethanol.

The new director of the Planning area shall be professor doctor
Joao Carlos Ferraz.  Mr. Ferraz, professor at the Institute of
Economics of UFRJ, has been the director of the Productive and
Business Development Division of the Economic Commission for
Latin America and Caribbean.  His areas of specialization
include technologic changes, industrial economy, industrial
organization and public policies.  Graduate in economics by
Pontif¡cia Universidade Cat¢lica de Minas Gerais he obtained his
doctor's degree from the University of Sussex (United Kingdom).

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 BRL1.48-Billion Loan to ThyssenKrupp
-----------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social aka BNDES
approved a BRL1.48 billion financing for installation of the
newest steel complex in the country, the ThyssenKrupp CSA
Companhia Siderurgica, located in the Industrial District of
Santa Cruz.

BNDES credit corresponds to 18% of the total project investment,
of BRL8 billion.  This is the largest Brazilian steel sector
project in the last twenty years and the highest investment of
the German ThyssenKrupp in its strategy to increase steel
production in the Atlantic market.  BNDES funds shall be
destined to the acquisition of national machines and equipment,
civil works, and associated facilities and assemblies.

BNDES financing was approved within the sphere of the
International Competition line, which aims at allowing national
equipment providers conditions that enable them to compete with
foreign manufacturers in the international price quotations.

The new steel plant, with start up forecast for 2009, shall have
annual production capacity of 5 million tons of steel slabs, a
semi-finished product basically used as raw material for flat
laminated products.  The high quality slabs produced in the new
Brazilian unit, among which, the low carbon and high resistance
ones, shall be sold to laminators of the ThyssenKrupp Group in
Europe and North America.

ThyssenKrupp CSA Companhia Siderurgica is an association between
the ThyssenKrupp Steel AG steel and the Brazilian miner
Companhia Vale do Rio Doce.  Besides the steel plant, the
investment foresees the construction of a CSA proprietary port
for importation of coal and exportation of its production.

TKS holds 90% of the capital and CVRD 10% of participation.  
That is, an association between a large German steel group and
the major worldwide iron ore miner.  CVRD participates in
project with an aim at ensuring market for its iron ore.

The project will generate around 18 thousand direct jobs during
its implementation and, approximately 3.5 thousand employments
for operation of the industrial complex.

The project financed by BNDES marks the entrance of another
international steel group in the country.  The plant to be
implemented in the district of Santa Cruz shall have integrated
production process, that is, it shall receive iron ore, coal and
the other raw materials to be processed in blast furnaces and
still mills and transformed into steel, to be afterwards molded
in a continuous ingoting machine.

The plant location, close to MRS railroad line, will allow the
acquisition of iron ore at competitive costs.  CSA efficiency
shall also be effective by taking advantage of the
infrastructure existing in the Port of Itaguai, which enables
implementation for a proprietary port terminal -- named Centro
Atlantico Port Terminal -- beside the plant, thus facilitating
the importation of metallurgic coal and production exportation
with lower logistic costs.

Among the investments to be made by CSA, the bank can highlight:

   * two blast furnaces;

   * two converters and one vacuum degasification unit;

   * two continuous ingoting machines;

   * one sintering unit and one coking plant;

   * auxiliary power generation units, an oxygen plant, water
     and industrial effluent treatment station;

   * railroad infrastructure, natural gas branch, electric
     energy transmission line, raw material and finished product
     stocks; proprietary port terminal.

                          Social Aspects

CSA will carry out social investments in its area of influence,
specially in health, with re-equipment of Hospital Pedro II, in
education, with the implementation of an educational center in
Itaguai, besides re-equipment of the Fire Corps [Corpo de
Bombeiros] and new facilities for the fishermen in the region.

There are already included here, investments in the assembly of
an emporium for the sale of fish, thus avoiding intermediary
costs, the construction of a pier, alphabetization of adult
fishermen and development of marine fish farming. Investments
shall also be carried out aiming self-sustainability of local
communities, including courses to enlarge employment capacities,
and incentives to the development of new activities, such as
cultivation of seaweeds.

BNDES will support social investments, with a BRL10.5 million
financing.  CSA project relies on environmental licenses issued
by FEEMA, authorizing the installation of the steel plant,
carrying out of works for the construction of earthworks and
dams, dredging and implementation of the port terminal.

                       ThyssenKrupp In Brazil

The first office of the ThyssenKrupp AG group in Brazil was
opened in 1889 with the sale of defense equipment, ships, trails
and steel products.  The group currently has 19 subsidiaries in
Brazil, with over 10 thousand employees.  Some of these are
ThyssenKrupp Elevadores, ThyssenKrupp F”rderyechnik Latin-
America and Polysius do Brasil, both with strong presence in
large investments of the capital-intensive sectors.  The group
also operates the ThyssenKrupp Automotive Systems do Brasil and
ThyssenKrupp M¢dulos Automotivos do Brasil, an automobile
industry supplier.

                          About BNDES

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

                        *     *     *

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


BANCO PINE: S&P Ups Long-Term Counterparty Credit Rating to BB-
---------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term
counterparty credit rating on Banco Pine S.A. to 'BB-' from
'B+'.  The rating was removed from CreditWatch Positive where it
was placed June 11, 2007.  The outlook is stable.
      
"The rating action reflects benefits from an improving
macroeconomic environment with better monetary and investment,
and deepening capital markets in Brazil, including Banco Pine's
better access to funding with more alternatives," said Standard
& Poor's credit analyst Daniel Araujo.  S&P expects Banco Pine
to benefit from further increase in the origination of loans to
midsize companies and payroll discount loans.  S&P also expects
the bank to have a more resilient funding profile.
     
The rating on Banco Pine reflects the risks of a midsize bank
operating in the competitive segments of lending to middle-
market companies and payroll discount lending to individuals;
the challenge of maintaining a stable and diversified funding
base; and the relative concentration of assets and liabilities
inherent to the nature of its activities.  Banco Pine has a
consistent track record in its niche of midsize companies,
including good credit risk management and reasonably good
earnings generation.  The rating also factors in the bank's
conservative positioning regarding liquidity management and the
successful completion of its IPO.
     
Banco Pine is a family-owned bank with reported total assets of
BRL3.3 billion (approximately US$1.5 billion) in March 2007.  
The bank specializes in collateralized lending to midsize
companies and payroll-discount loans to retirees and civil
servants.  Over time, the bank has added other products to
diversify its operations, namely onlendings from the Brazilian
national development bank, rendering guarantees to larger
corporates, and trade finance.  The bank has an agile operating
structure, which allows rapid growth under favorable
macroeconomic conditions and flexibility in times of stress.  
The bank faces increasing competition with an increase in the
number of players in the market.  In the medium to long term,
there is a risk of potential decline in margins.
     
The stable outlook reflects growth prospects in the segments of
loans to middle-market companies and of payroll discount loans
to individuals, as well as the bank's efforts to obtain more
funding alternatives to support its growth.  However, it also
incorporates the challenges posed by a competitive market in the
segments Banco Pine chose as core business and the expected
decline in margins in the medium term.  S&P expects the bank to
maintain current asset quality and profitability levels.  S&P
also expects the bank to maintain prudent liquidity management
with more stable and diversified funding sources.
     
The rating may be raised or the outlook revised to positive if
growth opportunities translate into increased scale of
operations with the maintenance of good asset quality indicators
and profitability ratios.
     
Conversely, the outlook may be revised to negative or the
ratings may be lowered if there is a significant deterioration
in the bank's asset quality ratios in comparison to current
ratios; if profitability drops substantially; or if liquidity
deteriorates due to difficulties in funding or less-conservative
management.

Headquartered in Sao Paulo, Banco Pine was established in 1997
by the brothers Nelson and Noberto Pinheiro after the sale in
1996 of their participation in another family institution.  A
comprehensive corporate and operational restructuring was
implemented and in the first half of 2005 Noberto Pinheiro
became the bank's majority shareholder.  In April 2007, Banco
Pine went public by placing non-voting preferred shares at the  
Bovespa Level 1 on the New Brazilian Stock Market.  These shares
enjoy a tag-along privilege, giving minority shareholders 100%
of the value of the block of controlling shares in the event of  
the sale of the institution.


BANCO SCHAHIN: S&P Affirms B/B Counterparty Credit Rating
---------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B/B'
counterparty credit rating on Banco Schahin S.A. and removed the
rating from CreditWatch Positive, where it was placed
June 11, 2007.  The outlook is stable.
      
"The ratings on Schahin reflect the comparatively worse asset
quality than peers given the higher delinquency of the remaining
wholesale portfolio; the intrinsic risks of a midsize bank
facing the challenge of growing its funding base; and
profitability pressure given interest results and margin
reduction," said Standard & Poor's credit analyst Tamara
Berenholc.  These risk factors are offset by the bank's coherent
strategy to generate more retail business while gradually
reducing the weight of loans to small and midsize enterprises;
the bank's strong liquidity position helped by alternative
funding sources; and its diversified product base.
     
With total assets of BRL1.5 billion in 2006, Schahin is a small
Brazilian bank.  It is part of a conglomerate with operations in
several areas, including oil-related services, engineering, and
utilities.  S&P does not assign ratings to any industrial or
service company part of Schahin's conglomerate, and the ratings
assigned to the bank do not incorporate potential support from
shareholders.
     
The bank changed its strategy three years ago to increase its
competitiveness and reduce concentration risk.  The major
objective has been to move away from wholesale banking with
middle-market companies, and focus on loans to individuals.  To
sustain this change, Schahin built extensive relationships with
representatives and correspondent banking units (mainly through
partnership with documentation agents, driving schools, and car
repairs) to position itself as a niche bank focused on consumer
finance and payroll discount lending.
     
Even with the reduction of SME operations, the bank will still
keep around 20% of lending to SMEs.  These companies are higher
risk institutions and continue to affect asset quality.  The
bank presented worse-than-peers asset quality indicators with an
adjusted nonperforming loans of more than 7% in December 2006.  
With the focus on payroll lending and vehicle finance, NPLs are
expected to reduce, but the booked SME portfolio will continue
to negatively affect asset quality.
     
The stable outlook incorporates its expectation that the bank
will be able to maintain stability in its consumer finance and
payroll discount lending to support its growth strategy while
maintaining its profitability and asset quality indicators.  The
stable outlook also incorporates the maintenance of a BIS ratio
above 13%.
     
The outlook may be changed to positive or ratings may be raised
if the bank (consolidated figures) shows sustainable growth and
stronger returns, a significant improvement in asset quality
indicators (with NPL ratio below 3%-4%), and sustainable
adjusted profitability at a 1.5%-2% ROA.  On the other hand, the
outlook could be changed to negative or ratings could be lowered
if there is a significant deterioration in Schahin's asset
quality ratios (vis-a-vis its current levels), or if the bank is
unable to sustain its operations, thus reducing its
profitability.


COMPANHIA ENERGETICA: Paying Dividends & Interests on June 29
-------------------------------------------------------------
Companhia Energetica de Minas Gerais has advised its
stockholders that, in accordance with Clause 31 of its Bylaws,
it will make these payments relating to the 2006 business year
on June 29, 2007:

(1) Interest on Equity for BRL84,533,500, being 50% of the
    amount decided by the meeting of the Board of Directors  
    held on April 27, 2006, to be paid to stockholders whose
    names were on the company's Nominal Share Register on
    May 11, 2006.

(2) Complementary dividends for BRL357,857,000, being 50% of
    the amount decided by the Ordinary and Extraordinary
    General Meetings of Stockholders held on April 26, 2007.

(3) Extraordinary dividends for BRL248,500,000, being 50% of
    the amount decided by the Ordinary and Extraordinary
    General Meetings of Stockholders held on April 26, 2007.

The payments will be made to stockholders whose names were on
the Nominal Share Register on April 26, 2007.

Amounts arising from sale of fractions resulting from the stock
bonus and the reverse split will be credited to their owners
together with the payment of the first installment of dividends
for 2006.

According to the company, payment will be made automatically to
all those stockholders whose have registration of their
information up-to-date with Banco Itau S.A.  The company reminds
stockholders that if there has been any change in their registry
information, they should update their information.  The
stockholder must present personal identification documents at
any branch of Banco Itau.

Companhia Energetica de Minas Gerais -- http://www.cemig.com.br/
-- is one of the largest and most important electric energy
utilities in Brazil due to its strategic location, its technical
expertise and its market.  Cemig's concession area extends
throughout nearly 96.7% of the State of Minas Gerais, Brazil.  
Cemig owns and operates 52 power plants, of which six are in
partnership with private enterprises, relying on a predominantly
hydroelectric energy matrix.  Electric energy is produced to
supply more than 17 million people living in the state's 774
municipalities.  In addition to those 52 plants, another three
are currently under construction.

Cemig is also active in several other states, through ventures
for the generation or the commercialization of energy in these
Brazilian states: in Santa Catarina (generation), Rio de Janeiro
(commercialization and generation), Espirito Santo (generation)
and Rio Grande do Sul (commercialization).

                        *     *     *

As reported on March 8, 2007, Moody's Investors Service assigned
corporate family ratings of Ba2 on its global scale and Aa3.br
on its Brazilian national scale to Companhia Energetica de Minas
Gerais aka CEMIG.  The rating action triggered the upgrade of
CEMIG's outstanding debentures due in 2009 and 2011, and of the
BRL250 million 2014 senior unsecured guaranteed debentures of
its wholly-owned subsidiary, Cemig Distribuicao S.A. to Ba2 from
B1 on the global scale and to Aa3.br from Baa2.br on the
Brazilian national scale, concluding the review process
initiated on Aug. 8, 2006.


DAIMLERCHRYSLER: Truck Group Inks Supply Pact with Fiat
-------------------------------------------------------
The DaimlerChrysler Truck Group and Fiat Powertrain Technologies
have concluded a strategic cooperation agreement in the field of
powertrains.

The first step of this agreement concerns the long-term supply
of light-duty diesel engines to the Mitsubishi Fuso Bus & Truck
Corporation, to be used in the Canter light commercial vehicle
which will be marketed in major markets, including and FPT will
supply around 80,000 F1C engines per year to Mitsubishi Fuso
starting in 2009.  The supply volumes will increase over the
following years.

The engine is a Common Rail Diesel engine, with displacement,
rated 177 Hp at 3,500 rpm and a torque of 400 Nm at 1,400 rpm.

Thanks to the optimized design of all engine components and to
the advanced technology of its injection and turbocharging
systems, the F1C engine guarantees excellent performance and
fuel consumption.  The F1C engine is currently manufactured only
in, but production in an additional site will shortly be started
as part of the globalization of FPTs footprint.

The current Canter generation was introduced in 2002 and is one
of the most successful light-duty trucks in -- sold over 132,000
times in over 106 countries worldwide.  Its great success and
Mitsubishi Fuso's core competence for such vehicles makes MFTBC
the worldwide Competence Centre for light-duty trucks within the
DaimlerChrysler Truck Group.

Within the framework of this strategic supply-agreement the two
companies are also investigating further potential business
opportunities in other markets, including.

"This agreement is a key step in our strategy aimed at
developing strategic partnerships in all sectors of the Group"
Sergio Marchionne, CEO of Fiat Group, said.  "Our ability to
partner with DaimlerChrysler is confirmation that the decision
to carve out our powertrain activities as a separate sector two
years ago was the right one, and that we have products and
technical skills to satisfy the needs of a demanding market."

"Today's and future emission regulations demand a high level of
investment and technological specialization," Dieter Zetsche,
Chairman of the Board of Management of DaimlerChrysler AG and
responsible for the Mercedes Car Group, said.  "This agreement
provides a value added for both companies, Fiat Group and
DaimlerChrysler."

"The agreement is a milestone for the DaimlerChrysler Truck
Group in many ways," Andreas Renschler, Member of the
DaimlerChrysler Board of Management and responsible for the
Truck Group, added.  "With this alliance we have reached the
best decision for our Fuso customers as we will offer them the
most modern, technologically advanced and ecologically friendly
light-duty engine for their businesses. And the engine will
deliver high performance combined with highly competitive fuel
efficiency."

"This agreement witnesses the level of our technology and
supports the strategic role of FPT in expanding its business
outside the captive market" Alfredo Altavilla, CEO of Fiat
Powertrain Technologies, said.  "We trust this supply agreement
can be the first step in a long-lasting and mutually
satisfactory cooperation in further selected projects."

Formed in March 2005, Fiat Powertrain Technologies is the
Engines and Transmissions sector of the Fiat Group.  With its
annual output of around 2.8 million engines and 2.1 million
transmissions, with 16 plants and 10 R&D centres, FPT is one of
the key players in its sector on a worldwide basis.

The DaimlerChrysler Truck Group is a division of DaimlerChrysler
AG and the world's largest commercial vehicle manufacturer.  
With its five truck brands Mercedes-Benz, Freightliner,
Sterling, Western Star and Fuso it operates over 50 locations in
Western Europe, Asia, the NAFTA region and Latin America.  Last
year the Truck Group sold 537,000 trucks world-wide.

Mitsubishi Fuso Truck & Bus Corporation is based in Kawasaki,
Japan, and sold a total of 186,600 units including light-,
medium- and heavy-duty trucks and buses in 2006.  
DaimlerChrysler AG owns 85% of MFTBC.  The remaining 15% of
shares are held by various Mitsubishi Group companies.  MFTBC is
an integral part of the DaimlerChrysler Truck Group.

                      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.


GERDAU SA: Will Form Joint Venture with Kalyani Group
-----------------------------------------------------
Gerdau SA told Business News Americas that it will create a
joint venture with India's Kalyani group to run a steel plant in
the Tadipatri, Andhra Pradesh.

Gerdau said in a statement that each of them will have a stake
of about 45% in SJK Steel Plant Limited.  Other investors will
own the remaining 10%.

According to BNamericas, SJK Steel can produce about 275,000
tones per year of liquid steel.  It also runs a pig iron
production facility.

BNamericas relates that Gerdau's stake acquisition is valued at
some US$71 million.  However, the final amount will be
determined once the deal is closed.  

"This joint venture is part of Gerdau's growth strategy and
ensures its presence in a country with fast economic growth and
important increases in steel consumption," Gerdau said in a
statement.

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

                        *     *     *

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


HEXCEL CORP: Inks Purchase Deal with JPS for Carolina Assets
------------------------------------------------------------
Hexcel Corporation entered into a definitive agreement with JPS
Industries Inc., pursuant to JPS acquiring the company's assets
comprising of operations in Anderson, South Carolina and
Statesville, North Carolina.

The consideration includes a cash purchase price of US$62.5
million, plus a contingent earn-out payment of up to US$12.5
million based on revenues generated from sales of ballistics
products from those facilities over the 36-month period after
the consummation of the acquisition.
    
Upon consummation of the transaction, JPS will acquire Hexcel's
fiberglass based electronics and specialty industrial substrates
businesses in addition to their aramid based ballistics
substrates business.
    
"This transaction represents a landmark event in the history of
JPS Industries and an opportunity to provide significant value
to JPS, its customers and its stockholders," Michael L.
Fulbright, chairman and CEO of JPS, said.  "JPS believes that
Hexcel's employees, facilities, and product lines complement the
company's existing operations well and adding these resources
into its existing business will create a much stronger operating
entity.  This combination provides the company's JPS Composite
Materials business, led by M. Gary Wallace, president, with
significant resources to grow and better serve our existing
markets and customers with larger, more flexible manufacturing
capabilities, stronger R&D efforts across all product lines and,
importantly, gives us entry to several new markets.  The
customers and markets of the new JPS Composites will span many
industries and specialty applications including, but not limited
to: electronics applications including printed circuit boards,
communication devices and Internet infrastructure components,
advanced composite materials for aerospace components in
military and commercial applications, specialty substrates for
commercial and residential construction, industrial filtration,
and insulation products, high performance fiberglass substrates
for security and transportation applications, and, importantly,
ballistics materials used in soft body armor for civilian and
military applications."
    
"The acquisition will be financed with a new US$105 million
senior and second lien credit facility arranged by Wachovia,
Charles R. "Chuck" Tutterow, EVP and CFO of JPS Industries and
president of Stevens Urethane added.  "After closing, the
company anticipates that the new JPS Industries will have annual
sales in excess of US$325 million originating from five
manufacturing facilities in our three main business units:
Composite Materials, Stevens Roofing and Stevens Urethane.
    
"This represents the first of several planned growth objectives
involving each of the company's three business units in the form
of organic growth, product line extensions and potentially other
acquisition opportunities," Mr. Fulbright stated.
    
The acquisition is subject to customary closing conditions,
including termination of waiting period under the Hart-Scott-
Rodino Antitrust Improvements Act and JPS's ability to obtain
financing sufficient to consummate the acquisition.  The
acquisition is expected to be completed in the third quarter of
2007.
    
                    About JPS Industries Inc.

Headquartered in New Hampshire, JPS Industries Inc. (JPST.PK) --
http://www.jpsindustries.com/-- manufactures of extruded  
urethanes, polypropylenes and mechanically formed glass
substrates for specialty industrial applications.  JPS specialty
industrial products are used in a wide range of applications,
including: printed electronic circuit boards; advanced composite
materials; aerospace components; filtration and insulation
products; surf boards; construction substrates; high performance
glass laminates for security and transportation applications;
plasma display screens; athletic shoes; commercial and
institutional roofing; reservoir covers; and medical, automotive
and industrial components.  The company operates manufacturing
locations in Slater, South Carolina; Westfield, North Carolina;
and Easthampton, Massachusetts.

                   About Hexcel Corporation

Headquartered in Stamford, Connecticut, Hexcel Corporation
(NYSE: HXL) -- http://www.hexcel.com/-- is an advanced  
structural materials company.  It develops, manufactures and
markets lightweight, high-performance structural materials,
including carbon fibers, reinforcements, prepregs, honeycomb,
matrix systems, adhesives and composite structures, used in
commercial aerospace, space and defense and industrial
applications.

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

                        *     *     *

As reported in the Troubled Company Reporter on April 5, 2007,
Moody's Investors Service has raised the ratings of Hexcel
Corporation, 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.  The ratings outlook is Stable.


JAPAN AIRLINES: To Cut 4,300 Jobs a Year Earlier Than Expected
--------------------------------------------------------------
Japan Airlines International Company, Limited, said that it will
cut about 4,300 jobs a year earlier than announced in February
in order to speed up its revival and reduce costs, the
Associated Press reports.

JAL spokesman Soichi Yatsugi revealed to AP that the reason for
this action is that the airline needs to speed up its
restructuring measures.  However, Mr. Yatsugi said that they
still don't have a target date for this.

The 4,300 jobs is composed 8% of the total workforce of JAL and
by cutting these, the airline can save about JPY50 billion a
year, relates AP.

JAL, the article recounts, is not only suffering from its
JPY1.7-trillion debt, it is also suffering from a tough
competition with rival All Nippon Airways Co., Limited.

As reported on June 7, 2007, JAL was told by one of its main
creditors, Development Bank of Japan, to implement more
restructuring programs before it will give its financial support
to the company.

                      About Japan Airlines

Tokyo-based Japan Airlines International Company, Limited --
http://www.jal.com/en/-- was created as a result of the merger  
of Japan Airlines and Japan Air Systems to boost domestic
coverage.  Japan Airlines flies to the United States, Brazil and
France.

                         *     *     *

As reported on Feb. 9, 2007, Standard & Poor's Ratings Services
affirmed its 'B+' long-term corporate credit and issue ratings
on Japan Airlines Corp. (B+/Negative/--) following the company's
announcement of its new medium-term management plan.  The
outlook on the long- term corporate credit rating was negative.

As reported on Oct. 10, 2006, that Moody's Investors Service
affirmed its Ba3 long-term debt ratings and issuer ratings for
both Japan Airlines International Co., Ltd., and Japan Airlines
Domestic Co., Ltd.  The rating affirmation is in response to the
planned restructuring of the Japan Airlines Corporation group on
Oct. 1, 2006, with the completion of the merger of JAL's two
operating subsidiaries, JAL International and Japan Airlines
Domestic.  JAL International will be the surviving company.  
Moody's said the rating outlook is stable.

Fitch Ratings Tokyo analyst Satoru Aoyama said that the
company's debt obligations and expenses for new aircraft have
placed it in an unfavorable financial position.  Fitch assigned
a BB- rating on the company, which is three notches lower than
investment grade.


KLABIN SA: S&P Affirms BB Credit Rating with Stable Outlook
-----------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on Klabin
S.A. to positive from stable.  S&P also affirmed its 'BB' long-
term counterparty credit rating.
      
"The rating reflects Brazil's country risk improvements and
favorable economic prospects in Klabin's main market, along with
the advanced stage of its significant expansion project, which
provides more assurance that the company will complete the
investments as promised," said Standard & Poor's credit analyst
Marcelo Costa.  The rating also reflects the benefits of
additional output gradually reaching the market and helping to
strengthen Klabin's EBITDA margin and cash generation,
especially in 2008 and 2009.  Although Klabin has increased its
gross debt position by 2.0x in 2006, it maintains a very
conservative financial profile regarding liquidity and keeps
an active liability management, which provides enough comfort
through the peak-of-debt period.  The positive outlook indicates
that the ratings could be raised in the near future once the
expansion project starts, profitability margins starts to pick
up, and the growing cash flow generation is able to post
improved cash flow protection measures because of overall debt
reduction.
     
The rating also reflects the company's exposure to some
important cost inputs such as energy; although the new expansion
project will reduce this exposure, the fragmented market for
corrugated boxes does not allow for pricing policies consistent
with the company's leading market share and the volatile nature
of the Kraftliner business.  These risks are partially offset by
Klabin's competitive cost position, its increasing
diversification into exports, and its highly comfortable
liquidity and capital structure.
     
The ratings could be raised in the near future once the
expansion project starts, and the growing cash flow generation
is able to post improved cash flow protection measures due to
the overall debt reduction.  S&P expects a significant cash
holding position to provide flexibility to cope with short-to-
medium term debt amortization.  S&P also expects an FFO-to-gross
debt ratio of about 30%, a total gross debt-to-EBITDA ratio of
3.0x, and positive free operating cash flow by 2009.  The
outlook could be revised to stable or negative if Klabin fails
to maintain its conservative financial guidelines or performs
poorly after the expansion project is completed.  This could
translate into larger exposure of net short-term debt, FFO-to-
total gross debt ratios lower than 25%, gross debt-to-EBITDA
ratios about 3.5x, and EBITDA-to-interest ratios lower than
3.0x, even though we consider the level of cash holdings to be
an important offsetting factor.

Klabin is the largest paper manufacturer and exporter in Brazil
and the biggest paper recycler in South America.  It is the
leading producer of packaging papers and boards, corrugated
packaging, industrial sacks and wood in logs.  The Company has
17 industrial sites in Brazil and one in Argentina.  Self-
sufficient in wood, it owns 191 thousand hectares of planted
forests and 130 thousand hectares of preserved native forests.


PARANA BANCO: S&P Ups Long-Term Counterparty Credit Rating to B+
----------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term
counterparty credit rating and senior unsecured debt rating on
Parana Banco S.A. to 'B+' from 'B'.  The ratings were removed
from CreditWatch Positive where they were placed June 11, 2007.  
At the same time, S&P affirmed the 'B' short-term counterparty
credit rating on the bank.  The outlook is stable.
      
"The upgrade reflects our views on the improving macroeconomic
environment, including better access to funding alternatives in
Brazil's growing capital markets," said Standard & Poor's credit
analyst Tamara Berenholc.  With the greater stability of the
local economy, a consistent deepening of the local capital
markets, and Parana Banco's improved capitalization level, we
expect the bank to benefit from higher, diversified, and more
resilient funding access that should help it grow its market
position and increase scale.  S&P also expects the bank to
sustain its good profitability level and asset quality.
     
The ratings incorporate Parana Banco's challenge to further
diversify its funding base and become less dependent on the
group's resources, and the potential margin pressures in the
medium-to-long term that could affect profitability.  In
addition, the bank is still challenged to increase scale
while maintaining adequate asset quality.  The bank's good
profitability levels, adequate operating efficiency, ability to
grow its credit portfolio despite competition, and good asset
quality ratios with higher credit diversification offset these
risks.
     
Parana Banco is a niche bank, with adjusted assets of Brazilian
reais BRL1,052 billion at December 2006.  Parana Banco's niche
is payroll discount lending, which represents about 98% of the
company's credit operations, and primarily serves public-sector
employees.  The bank is a relevant part of a broader
conglomerate (J. Malucelli), with operations in different
sectors and concentrated in Southern Brazil.
     
The stable outlook reflects S&P's expectation that the bank will
be able to maintain its core competencies in the medium term,
with profitability and asset-quality indicators at adequate
levels.  The outlook could be revised to negative or the ratings
could be lowered if there is a significant worsening in asset
quality with NPLs higher than 5%; if profitability levels drop
drastically; or if funding and liquidity become problematic.  On
the other hand, the outlook could be revised to positive or
there could be an elevation of the ratings depending on superior
growth in its niche with consistent higher share, more
diversified and higher funding, a reduction in dependence on the
group's resources, and sustainable strong profitability.

Parana Banco is a niche bank in the segment of payroll discount
lending, primarily to public-sector employees.  The bank's
adjusted total assets of US$375 million as of June 2006
represented less than 1% of total assets in the Brazilian
banking industry.  The bank is a relevant part of a broader
conglomerate (J. Malucelli), with operations in different
sectors and concentrated in the South of Brazil.  Standard &
Poor's does not assign ratings to any company in the J.
Malucelli group, and the ratings assigned to the bank do not
incorporate potential support from shareholders.


PETROLEO BRASILEIRO: Awards US$34-Million Contract to HidroClean
----------------------------------------------------------------
Brazilian state-owned oil firm Petroleo Brasileiro SA has
awarded Brazilian spill prevention firm HidroClean and its U.S.
affiliate Garner Environmental a BRL34-million contract to
provide environmental protection services to the state company,
HidroClean said in a press release.

Business News Americas relates that the contract will last for
six years.

HidroClean Chief Executive Officer Marcelino Nascimento told the
press that the firm, together with Garner Environmental, will
supply preemptive environmental services at three of nine
Petroleo Brasileiro environmental defense centers in northeast
Brazil.  Both companies could also act in emergency situations
at the centers.

According to BNamericas, environmental defense centers aim to
ensure maximum protection to Petroleo Brasileiro's operating
units in case of accidents.

Mr. Nascimento commented to BNamericas, "We have become more of
a prevention company than one which acts in emergencies, which
are becoming rarer in the oil industry."

The report says that HidroClean has acted in about 120 offshore
and onshore waste and oil spills since it was created in 2000.  
The firm also has environmental protection accords with some of
Brazil's largest ports like Rio de Janeiro, Santos and
Paranagua.

HidroClean also works for US firms El Paso, Chevron, Devon and
Anglo-Dutch Shell, BNamericas states.

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

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

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

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

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


PETROLEO BRASILEIRO: Oil & Gas Production Drop 1% in May 2007
-------------------------------------------------------------
Brazilian state-owned oil company Petroleo Brasileiro SA said in
a press release that total oil and gas output dropped 1% to 2.26
million barrels of oil equivalent per day in May 2007, from
April 2007.

Business News Americas relates that oil and gas production in
Brazil decreased 1% to 2.02 million barrels of oil equivalent
per day in May 2007, compared to April 2007.  Foreign production
dropped 0.6% to 245,176 barrels of oil equivalent a day.

According to BNamericas, Petroleo Brasileiro's foreign oil
output totaled 130,479 barrels per day, while gas production was
19.5 million cubic meters a day in May 2007.  Meanwhile, the
firm produced 1.76 million barrels per day of oil and 41.9
million cubic meters per day of gas from its Brazilian
operations.

Petroleo Brasileiro told BNamericas that the output decline was
due to:

          -- postponement to May 2007 from February 2007 of
             scheduled maintenance stoppages at platforms in
             the Campos basin,

          -- operational problems with a pipeline in the
             Guaricema and Dourado fields in Sergipe, and

          -- gas compressing in the P-34 oil platform.

The Espirito Santo state produced some 141,700 barrels of oil on
June 15, 2007, compared to an average of 99,100 barrels per day
in May 2007, BNamericas notes, citing Petroleo Brasileiro.

"The record in Espirito Santo was due to the good performance of
the P-34 oil platform in the Jubarte field which has reached
60,000 barrels per day production, its maximum capacity,"
Petroleo Brasileiro 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.


SWIFT & CO: J&F Unit Plans US$600-Mil. Notes Private Offering
-------------------------------------------------------------
Swift & Company, in connection with the previously announced
acquisition of Swift Foods Company by J&F Participacoes S.A.,
disclosed that J&F I Finance Co., a J&F subsidiary, intended to
offer, in a private placement, approximately US$600 million
aggregate principal amount of notes, consisting of US$200
million aggregate principal amount of senior notes due 2015,
US$200 million aggregate original principal amount of senior
toggle notes due 2015 and US$200 million aggregate principal
amount of senior floating rate notes due 2014.

At the closing of the acquisition, Finance Sub, the issuer of
the Notes, will merge with and into Swift, with Swift continuing
as the surviving corporation.  At the time of the acquisition,
Swift will assume the obligations of Finance Sub under the Notes
and the related indentures by operation of law.

The offering of the Notes is part of the financing for, will
occur concurrently with, and is conditioned upon the
consummation of, the acquisition.

The Notes have not been registered under the Securities Act of
1933, as amended, and, unless so registered, may not be
offered or sold in the United States absent registration or an
applicable exemption from, or in a transaction not subject to,
the registration requirements of the Securities Act and other
applicable securities laws.

Headquartered in Greeley, Colorado, Swift & Company is one of
the world's leading beef and pork processing companies.  Its
largest business segments are domestic beef processing, domestic
pork processing and beef operations in Swift Australia.  Swift's
parent S&C Holdco 3 is owned by a limited partnership formed by
equity sponsors HM Capital Partners LLC (formerly Hicks Muse)
and Booth Creek Management Corporation.  Consolidated sales for
the 12 months ended Feb. 25, 2007, were approximately US$9.5
billion.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
May 31, 2007, Moody's Investors Service placed the ratings of
Swift & Company including its B3 corporate family rating and B3
probability of default rating, on review for possible upgrade
following the announcement that the company will be acquired by
J&F Participacoes S.A. of Brazil.  LGD assessments are also
subject to adjustment.

Ratings under review for possible upgrade:

   -- Corporate family rating at B3;
   -- Probability of default rating at B3;
   -- Senior unsecured notes at Caa1;
   -- Senior subordinated notes at Caa1.


VASOMEDICAL INC: Inks Business Alliance with Living Data
--------------------------------------------------------
Vasomedical Inc. entered into an alliance and business
arrangement with Living Data Technology Corporation and its
affiliates.  

Pursuant to the alliance agreement, Kerns Manufacturing Corp.,
of Living Data's affiliate, made a US$1.5 million equity
investment in Vasomedical through the purchase of common stock.
In addition, Vasomedical has an option to sell an additional
US$1 million of its common stock to Kerns, subject to certain
terms, restrictions and conditions.

Vasomedical and Living Data also entered into agreements that
grant Vasomedical exclusive right to market and distribute
Living Data's external counterpulsation systems in the United
States.  In return, the agreement granted Living Data exclusive
right to manufacture and supply products to Vasomedical.  The
arrangement also provides for the appointment of two
representatives of Living Data to Vasomedical's board of
directors, including Simon Srybnik, chairman of Kerns and Living
Data.

"This transaction offers us the opportunity to expand our
patient base for this important medical treatment," remarked
Vasomedical's newly appointed president and chief executive
officer Dr. John CK Hui.  "With the new capital infusion,
together with our recently restructured management team, plus
the addition of Living Data and Kern's business expertise, we
can begin to execute a new marketing and sales plan.  It is our
goal in the coming months to achieve greater market penetration,
to demonstrate renewed revenue growth, and to increase
shareholder value."

"We are extremely excited about the future of Vasomedical,"
remarked Mr. Abraham E Cohen, chairman of the Board of Directors
of Vasomedical.  "With additional capital, a new strategic
alliance partner who has proven expertise in the innovative
mobile ECP system from Living Data, combined with our existing
products with proven clinical effectiveness, we are ready to
expand our market and continue to be the leader of this
noninvasive, effective, and cost efficient therapy for patients
suffering from ischemic heart disease."

"I am a true believer in external counterpulsation therapy, and
I have personally benefited from using this noninvasive
treatment regime," commented Mr. Simon Srybnik.  "This alliance
of two companies with great track records will create a synergy
that combines the engineering and manufacturing expertise of
Living Data with the leadership and reputation of Vasomedical, a
company well qualified to market a product that is needed to
prolong and improve the quality of life for patients across a
broad spectrum of debilitating illnesses.  I am confident that
together we can bring the best products and services to the
market, while at the same time increasing shareholder value.  
Vasomedical is a pioneer in the field and offers the only
clinical evidence-based line worldwide.  We will support
Vasomedical as it expands its market presence and leadership and
are open to exploring additional acquisitions and other
strategic relationships."

                         About Living Data

Living Data Technology Corp. - http://www.angionew.com/--  
is a New York based private company that develops and markets
AngioNew(R) external counterpulsation systems for non-invasive
treatment of cardiovascular diseases such as angina and CHF.  
Its ECP systems delivers treatment without operator
intervention.  Living Data offers products from its China based
production facility, which is ISO 9001 and ISO 13485 certified,
and in full compliance with cGMP.  Living Data markets and
installs AngioNew(R) systems in the United States as well in
many countries in Europe and Middle and Far East.

                       Going Concern Doubt

As reported in the Troubled Company Reporter on Sept. 8, 2006,
Miller Ellin & Company LLP, in New York, expressed substantial
doubt about Vasomedical Inc.'s ability to continue as a going
concern after auditing the company's financial statements
for the fiscal year ended May 31, 2006.  The auditing firm
pointed to the company's recurring losses from operations and
net capital deficiency.

                      About Kerns Manufacturing

Kerns Manufacturing Corp. -- http://www.kernsmfg.com/--  
manufactures aircraft and rocket engine components and
subassemblies for over 50 years.  Its products are complex
critical components vital to the safe and continuous operation
of both commercial and military aircraft and rocket engines,
therefore demanding the highest standards of quality assurance
for excellence and precision.  Kerns customer base includes
General Electric, Pratt & Whitney, SNECMA in France, MTU in
Germany, ITP in Spain as well as the U.S. Government.  It also
operates with joint ventures and partners in India and China.

                        About Vasomedical

Vasomedical Inc. (OTC BB: VASO.OB) --
http://www.vasomedical.com/-- develops, manufactures and  
markets EECP(R) therapy systems to deliver its proprietary form
of enhanced external counterpulsation therapy.  EECP(R) therapy
is a noninvasive, outpatient therapy used in the treatment of
ischemic cardiovascular diseases, currently used to manage
chronic stable angina and heart failure.

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




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


AB FUNDING: Proofs of Claim Filing Is Until July 11
---------------------------------------------------
AB Funding Co.'s creditors are given until July 11, 2007, to
prove their claims to Bernard and McGrath and Janeen Aljadir,
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.

AB Funding's shareholders agreed on May 26, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidator can be reached at:

         Janeen Aljadir
         Attention: Janeen Aljadir
         Caledonian Bank & Trust Limited
         Caledonian House, 69 Dr. Roy's Drive
         P.O. Box 1043
         Grand Cayman KY1-1102
         Cayman Islands
         Telephone: (345) 914 -4943
         Fax: (345) 949-8062


AB FUNDING: Will Hold Final Shareholders Meeting on July 18
-----------------------------------------------------------
AB Funding Ltd. will hold its final shareholders meeting on
July 18, 2007, at:

         Caledonian House, 69 Dr. Roy's Drive
         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,

   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:

         Janeen Aljadir
         Caledonian Bank & Trust Limited
         Caledonian House
         P.O. Box 1043
         Grand Cayman KY1-1102
         Cayman Islands


AL BAIT: Proofs of Claim Filing Ends on July 11
-----------------------------------------------
Al Bait UK Real Estate Fund Ltd.'s creditors are given until
July 11, 2007, to prove their claims to Kenneth M. Krys and
Christian Pickford, 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.

Al Bait's shareholders agreed on May 17, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidators can be reached at:

         Kenneth M. Krys
         Christian Pickford
         Attention: Joanna Chong
         P.O. Box 1370
         George Town, Grand Cayman
         Cayman Islands
         Telephone: (345) 949-7100
         Fax: (345) 949-7120


BANCAJA INT'L: Sets Final Shareholders Meeting on July 26
---------------------------------------------------------
Bancaja International will hold its final shareholders meeting
on July 26, 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,

   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 liquidators can be reached at:

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


BANCO ABC: Fitch Affirms BB+ Long-Term Foreign Currency Rating
--------------------------------------------------------------
Fitch Ratings affirmed Banco ABC Brasil S.A.'s (ABCbr) ratings:

   -- Long-term foreign currency Issuer Default rating at 'BB+',  
      Stable Outlook

   -- Short-term foreign currency debt rating at 'B'

   -- Long-term local currency IDR at 'BB+', Stable Outlook

   -- Short-term local currency debt rating at 'B'

   -- Individual rating at 'C/D'

   -- National Long-term rating at 'AA-(AA minus)(bra)', Stable
      Outlook

   -- National Short-term rating at 'F1+(bra)'

   -- Support rating at '3'

The Long-term foreign and local currency IDRs, as well as
National and Support ratings are based on ABCbr's operational
and financial support of its parent, Arab Banking Corporation
(rated 'BBB+'/Outlook Stable).  This is evident in ABC's control
and close supervision of ABCbr as well as the strong
communication between the banks.

The Individual rating reflects ABCbr's sound knowledge of the
Brazilian market, satisfactory performance despite several
Brazilian crises, and above-average asset quality.  On the other
hand, the ratings also take into account the bank's relatively
high asset and liability concentrations despite its recent foray
into lending to medium-sized companies and individuals.

ABCbr is planning to raise a significant amount of capital
through a non-voting preferred shares issue on BOVESPA
(Brazilian Stock Exchange) and has already filed the necessary
applications.  Fitch understands that under current market
conditions the issue seems viable.  ABCbr intends to apply for
BOVESPA's Level 2 listing, which demands high levels of
corporate governance. ABC will retain control of ABCbr after the
share issue.

ABCbr, established in 1989, is 99.99%-controlled by Marsau
Uruguay Holding S.A. (2006 equity of USD232m), which in turn is
83.9%-owned by ABC.  The balance of shares in both entities is
held by ABCbr's executive partners.

Banco ABC Brasil, controlled by Arab Banking Corporation and
with a branch on the Cayman Islands, is a multiple bank endowed
to operate with commercial, investment, financial, housing loan
and exchange portfolios.  Our supporting structure includes a
securities dealer and an administration and services company.  
Due to their synergetic operations, these companies can cover a
broad spectrum of financial intermediation activities focused on
Brazilian interests, adding to the financial services offered
worldwide by the controlling company.


CAYMAN CONNECTOR: Proofs of Claim Must be Filed by July 11
----------------------------------------------------------
Cayman Connector Co.'s creditors are given until July 11, 2007,
to prove their claims to Stuart K. Sybersma and Ian Wight, 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.

Cayman Connector'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:

         Stuart Sybersma
         Attention: Mervin Solas
         Deloitte
         P.O. Box 1787
         George Town, Grand Cayman
         Cayman Islands
         Telephone: (345) 949 7500
         Fax: (345) 949 8258


EM CAPITAL: Proofs of Claim Must be Filed by July 20
----------------------------------------------------
Em Capital Ltd.'s creditors are given until July 20, 2007, to
prove their claims to Richard L. Finlay, the company's
liquidator, or be excluded from receiving any distribution or
payment.

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

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

The liquidator can be reached at:

       Richard L. Finlay
       Attention: Krys Lumsden
       P.O. Box 2681
       Grand Cayman KY1-1111
       Cayman Islands
       Telephone: (345) 945 3901
       Fax: (345) 945 3902


EM CAPITAL: Sets Final Shareholders Meeting for July 20
-------------------------------------------------------
Em Capital Ltd. will hold its final shareholders meeting on
July 20, 2007, at 9:00 a.m., at:

         Caledonian House, 69 Dr. Roy's Drive
         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) 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:

         Richard L. Finlay
         Attention: Krys Lumsden
         P.O. Box 2681
         Grand Cayman KY1-1111
         Cayman Islands
         Telephone: (345) 945 3901
         Fax: (345) 945 3902


FREEBIRD OFFSHORE: Proofs of Claim Filing Ends on July 3
--------------------------------------------------------
Freebird Offshore Fund, Ltd. creditors are given until
July 3, 2007, to prove their claims to Q & H Nominees Ltd.,
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.

Freebird Offshore's shareholders agreed on May 7, 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
         c/o P.O. Box 1348
         Grand Cayman KY1-1108
         Cayman Islands
         Telephone: (+1) 345 949 4123
         Fax: (+1) 345 949 4647


FREEBIRD OFFSHORE: Sets Final Shareholders Meeting for July 3
-------------------------------------------------------------
Freebird Offshore Fund Ltd. will hold its final shareholders
meeting on July 3, 2007, at 10:00 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,
        and

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

     3) manner in which the books, accounts
        and documentation of the Company and of the
        Liquidator should be maintained and
        subsequently disposed.

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
        Cayman Islands


INVESTCORP HARBORSIDE: Proofs of Claim Filing Ends on July 6
------------------------------------------------------------
Investcorp Harborside Islamic Financing Ltd.'s creditors are
given until July 6, 2007, to prove their claims to Westport
Services 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.

Investcorp Harborside's shareholders agreed on May 14, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

         Westport Services Ltd.
         Attention: Bonnie Willkom
         P.O. Box 1111
         Grand Cayman KY1-1102
         Cayman Islands
         Telephone: (345)-949-5122
         Fax: (345)-949-7920


INVESTCORP HARBORSIDE INVESTING: Claims Filing Ends on July 6
-------------------------------------------------------------
Investcorp Harborside Investing Ltd.'s creditors are given until
July 6, 2007, to prove their claims to Westport Services 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.

Investcorp Harborside's shareholders agreed on May 14, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

         Westport Services Ltd.
         Attention: Bonnie Willkom
         P.O. Box 1111
         Grand Cayman KY1-1102
         Cayman Islands
         Telephone: (345)-949-5122
         Fax: (345)-949-7920


KA LEASING: Holding Final Shareholders Meeting on July 18
---------------------------------------------------------
KA Leasing Ltd. will hold its final shareholders meeting on
July 18, 2007, at:

         Caledonian House, 69 Dr. Roy's Drive
         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:

         Griffin Management Limited
         Caledonian Bank & Trust Limited
         Caledonian House
         P.O. Box 1043
         Grand Cayman KY1-1102
         Cayman Islands


KENWALL LTD: Proofs of Claim Filing Deadline Is July 25
-------------------------------------------------------
Kenwall Ltd.'s creditors are given until July 25, 2007, to
prove their claims to Richard Gordon and Andrew Dean, the
company's liquidators, or be excluded from receiving any
distribution or payment.

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

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

The liquidator can be reached at:

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


NEW CARE: Proofs of Claim Filing Deadline Is July 6
---------------------------------------------------
New Care Holdings Ltd.'s creditors are given until July 6, 2007,
to prove their claims to Westport Services 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.

New Care's shareholders agreed on May 14, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

         Westport Services Ltd.
         Attention: Bonnie Willkom
         P.O. Box 1111
         Grand Cayman KY1-1102
         Cayman Islands
         Telephone: (345)-949-5122
         Fax: (345)-949-7920


NEW EQUITY: Proofs of Claim Filing Ends on July 6
-------------------------------------------------
New Equity HRA Ltd.'s creditors are given until July 6, 2007, to
prove their claims to Westport Services 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.

New Equity's shareholders agreed on May 14, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

         Westport Services Ltd.
         Attention: Bonnie Willkom
         P.O. Box 1111
         Grand Cayman KY1-1102
         Cayman Islands
         Telephone: (345)-949-5122
         Fax: (345)-949-7920


NEW HARBORSIDE: Proofs of Claim Filing Is Until July 6
------------------------------------------------------
New Harborside Investors II Ltd.'s creditors are given until
July 6, 2007, to prove their claims to Westport Services 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.

New Harborside's shareholders agreed on May 14, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

         Westport Services Ltd.
         Attention: Bonnie Willkom
         P.O. Box 1111
         Grand Cayman KY1-1102
         Cayman Islands
         Telephone: (345)-949-5122
         Fax: (345)-949-7920


NEW HEALTHCARE: Proofs of Claim Must be Filed by July 6
-------------------------------------------------------
New Healthcare Investments Ltd.'s creditors are given until
July 6, 2007, to prove their claims to Westport Services 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.

New Healthcare's shareholders agreed on May 14, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

         Westport Services Ltd.
         Attention: Bonnie Willkom
         P.O. Box 1111
         Grand Cayman KY1-1102
         Cayman Islands
         Telephone: (345)-949-5122
         Fax: (345)-949-7920


NEW HRB: Proofs of Claim Must be Filed by July 6
------------------------------------------------
New HRB Holdings Ltd.'s creditors are given until July 6, 2007,
to prove their claims to Westport Services 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.

New HRB's shareholders agreed on May 14, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

         Westport Services Ltd.
         Attention: Bonnie Willkom
         P.O. Box 1111
         Grand Cayman KY1-1102
         Cayman Islands
         Telephone: (345)-949-5122
         Fax: (345)-949-7920


PERENCO ERITREA: Will Hold Final Shareholders Meeting on July 12
----------------------------------------------------------------
Perenco Eritrea Ltd. will hold its final shareholders meeting on
July 12, 2007, at 10:00 a.m., at:

         Lyford Manor, Lyford Cay
         West Bay Street, Nassau
         Bahamas

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:

         Roland Fox
         c/o P.O. Box 309
         Grand Cayman KY1-1104
         Cayman Islands


PERENCO ERITREA: Proofs of Claim Filing Ends on July 12
-------------------------------------------------------
Perenco Eritrea Ltd.'s creditors are given until July 12, 2007,
to prove their claims to Roland Fox, 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.

Perenco Eritrea's shareholders agreed on May 14, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

         Roland Fox
         c/o P.O. Box 309
         Grand Cayman KY1-1104
         Cayman Islands




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


SHAW GROUP: Inks Partnership Agreement with Alinda Capital
----------------------------------------------------------
The Shaw Group Inc.'s wholly owned subsidiary, Shaw Capital,
Inc., and Alinda Capital Partners LLC, a privately-held
investment firm, have agreed to jointly pursue development of
certain yet to be identified energy, transportation,
infrastructure, water, wastewater, and related projects through
Shaw Infrastructure Investments LLC, a newly created joint
venture.

Shaw Infrastructure Investments LLC combines Alinda's depth of
capital resources and infrastructure investing experience with
Shaw's project development, engineering, construction,
maintenance, and fabrication and manufacturing expertise to
pursue acquisitions of operating assets; expansions and
retrofitting of existing assets; and construction of new assets.  
Targeted assets will possess or demonstrate a potential for
steady, growing and predictable cash flow; a strategic
competitive advantage; and limited commodity or merchant risk.  
Shaw's traditional lines of business may deliver technical
solutions to facilitate each project's success.

J.M. Bernhard, Jr., chairman, president and chief executive
officer of Shaw, said, "Our joint venture with Alinda is a
strategic step for Shaw as it looks to provide customers with a
single source for solutions.  Shaw has achieved superior growth
as a vertically-integrated service provider and now, through
this venture with Alinda, we may also provide our customers with
access to investment capital to complement Shaw's world class
capabilities in project development, engineering, construction,
maintenance, and fabrication and manufacturing.  This venture
also provides Shaw opportunities to grow its own asset value and
further prosper as a Fortune 500 company."

Alinda's Managing Partner, Chris Beale, said, "We are excited to
be able to join with Shaw in a series of diversified investment
opportunities.  Shaw is a recognized leader in providing
comprehensive services to communities, companies, and
governments, and we are pleased that we will be investing
alongside Shaw to help maintain and improve the infrastructure
that is critical to the well being of our communities and the
efficient functioning of businesses and governmental
authorities."

                       About Alinda Capital

Alinda Capital Partners LLC is a privately-held investment firm
specializing in investments in infrastructure assets.  It
manages the US$3 billion Alinda Infrastructure Fund, an
institutional fund, which has a long-term investment horizon.  
To date, the fund has invested in the Detroit-Windsor Tunnel in
Michigan, four toll bridges in Alabama, natural gas distribution
utilities in Colorado, Nebraska and Wyoming, and water tanks in
Canada. For more information, visit www.alinda.com.

                         About Shaw Group

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.




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


PETROECUADOR: Sells 3.6 Million Barrels of Oriente Crude
--------------------------------------------------------
Ecuadorean state-run oil firm Petroecuador has sold some 3.6
million barrels of Oriente crude in short-term contracts at spot
market price discounts of up to US$8.88 per barrel, Business
News Americas reports.

Petroecuador President Carlos Pareja Yannuzzelli said in a
statement that the US$7.09-per-barrel differential was the
lowest in recent years.  Oriente crude's differential in
December 2006 was US$13.17 a barrel.

According to BNamericas, Repsol YPF Trading y Transporte had the
best offer for six shipments.  Traders Taurus Petroleum and
Petrochina Internacional were the best bidders for two lots
each.

The report says that every shipment is for 360,000 barrels
during an eight-week window, beginning July and ending in August
2007.

Petroecuador invited 57 entities to make an offer for the crude.  
About 14 companies presented bids, BNamericas states.

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




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


MILLICOM INTERNATIONAL: Morgan Joseph Reaffirms Buy Rating
----------------------------------------------------------
Morgan Joseph analysts have reaffirmed their "buy" rating on
Millicom International Cellular's shares, Newratings.com
reports.

According to Newratings.com, the target price was set at US$104.

The analysts said in a research note that Millicom International
has made a transition to per-second billing in Latin America,
which appears sensible and is tracking as per plan.

The analysts are positive that Millicom International would add
1.83 million and 8.29 million new subscribers in the second
quarter 2007 and the current year, respectively, Newratings.com
notes.

Millicom International is unlikely to enter into the Peruvian
market, Morgan Joseph told Newratings.com.

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

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

                        *     *     *

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

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

                        *     *     *

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

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




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


LAND O'LAKES: Moody's Ups Corp. Family Rating to Ba2 from Ba3
-------------------------------------------------------------
Moody's Investors Service upgraded the long-term ratings of Land
O'Lakes, Inc., including its corporate family rating and
probability of default rating to Ba2 from Ba3, and affirmed its
speculative grade liquidity rating of SGL-2.  The rating outlook
is stable.

Ratings upgrade:

Land O'Lakes, Inc.


-- Corporate family rating to Ba2 from Ba3

-- Probability of default rating to Ba2 from Ba3

-- US$225 million senior secured revolving credit to Baa3
    (LGD2,18%) from Ba1 (LGD2,21%)

-- US$175 million 9% senior secured second lien debt to Ba1
    (LGD2,29%) from Ba2 (LGD3,33%)

-- Senior unsecured notes to Ba2 (LGD4,57%) from Ba3(LGD4,58%)

Land O'Lakes Capital Trust I

-- US$191 million 7.45% capital securities to B1 (LGD5,88%)
    from B2 (LGD5,88%)

Rating affirmed:

Land O'Lakes, Inc.

-- Speculative grade liquidity rating at SGL-2

The upgrade in long-term ratings reflects Land O' Lakes'
continued successful streamlining of its portfolio, management's
sustained commitment to debt reduction, and its improved
financial flexibility, credit metrics and operating results.  
The most recent example of portfolio rationalization and
organizational simplification is the cooperative's June 21st
decision to buy the crop protection products business conducted
by its off-balance sheet joint venture Agriliance, when
Agriliance sells the crop nutrients business to its other 50%
owner.

The SGL rating reflects Moody's expectation that cash flow
generation over the next twelve months, as well as cash
balances, will be at levels that are likely to cover major uses,
although the cooperative will likely access external funds on an
interim basis during the next twelve months to cover seasonal
working capital needs.

The company's Ba2 rating is supported by the strength of the
Land O' Lakes brand; the cooperative's scale; its strong market
positions in dairy, animal feed, seed and agronomy, through the
Agriliance joint venture; and the broad distribution
infrastructure supporting its businesses, all of which are
consistent with an investment grade rating.  However, the
cooperative's exposure to volatile agricultural and commodity
markets and a business profile that has been inconsistent over
the years are attributes that are commensurate with speculative
grade ratings.  In addition, Land O' Lakes' ratings take into
account i) the remaining organizational complexity-with varied
business lines; ii) the challenges of adapting and executing
business strategies under a cooperative ownership structure; and
iii) historically high cash payments to its cooperative
membership base.

Moody's analyzes Land O'Lakes in the context of the Rating
Methodology for Global Agricultural Cooperatives.  Using the 19
rating factors cited in this methodology and Land O'Lakes'
fiscal 2006 financial metrics, the cooperative's rating maps to
Ba1, one notch higher than its actual Ba2 corporate family
rating.  Land O'Lakes' actual rating incorporates the evolving
nature of the cooperative's business configuration and possible
challenges as the important Agriliance joint venture sheds two
major business lines.

The stable rating outlook assumes stable operating performance
in core segments, continued progress in rationalizing non-core
businesses, and successful integration of the crop protection
products business in a timely fashion.

Land O'Lakes Inc. -- http://www.landolakesinc.com/-- is a   
national farmer-owned food and agricultural cooperative,
marketing dairy-based consumer, foodservice and food ingredient
products.  Land O' Lakes does business in all 50 states, as well
as more than 50 countries, including the Philippines, Ukraine
and Guatemala.




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


* HONDURAS: Launching Quasi-Mobile Service in 30 Days
-----------------------------------------------------
An official of Honduras' state-owned fixed-line
telecommunications firm Hondutel told Business News Americas
that it would launch a quasi-mobile service based on the
Personal Handyphone System concept in 30 days.

According to BNamericas, the official said that the service will
be launched in Tegucigalpa, with capacity for 25,000 users.  
After 60-90 days, Hondutel will launch it in San Pedro Sula,
also with capacity for 25,000 people.  The firm's traditional
fixed line customer base now surpasses 500,000.  Though the
service isn't "true mobile," subscribers will be able to use
their handsets anywhere in the city.

The official told BNamericas that Hondutel is able to launch
"PHS by virtue of its PCS license, and using infrastructure
supplied by Ericsson, but true mobile is unlikely to come until
late 2008."

Honduran news daily La Prensa relates that Hondutel has US$130
million saved in foreign bank accounts.  Experts say that the
firm would need some US$400 million to launch a full mobile
operation and would need a partner.

La Prensa notes that the partners would most likely be
international groups that would only commit if they can own a
stake in Hondutel.

BNamericas says that Hondutel is under increasing pressure to
launch full mobile service, as the Honduras government is making
progress with its plans to auction the mobile license.

Telecoms regulator Conatel's head Rasel Tome told local daily La
Tribuna that the regulator "is in the final stages of preparing
bidding rules for the license auction."  Conatel would grant the
license in December 2007.  The winner would likely launch
operations in the first few months of next year.

Mr. Tome said that the government is interested in attracting
large overseas telecoms groups and will endeavor to advertise
the auction in international media, BNamericas says.  

Local company Multifon told BNamericas that it wants to offer
mobile services, "expanding on the personal handy phone system
it operates using an Internet protocol-based platform called
personal access system."

                        *    *    *

As reported in Troubled Company Reporter on Jan. 11, 2006,
analysts stated that Hondutel will have to find a strategic
partner in order to survive the competition in the Internet and
mobile telephony segments, as it faces an uncertain future after
its monopoly of the international long distance market, opening
up the market to greater competition.




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


NACIONAL COMMERCIAL: Unit Opening Rights Issue of 100MM Shares
--------------------------------------------------------------
Julian Richardson at the Jamaica Observer reports that the
National Commercial Bank's unit, NCB Capital Markets Limited,
"will open its rights issue of 100 million new preference shares
to existing shareholders" on Wednesday, to try to raise some
US$310 million.

According to The Observer, the shares will be sold at J$3.10 per
share.  It will have a fixed dividend, payable semi-annually, of
11.75% per annum.

The offer closes on July 27.  It is being made to strengthen NCB
Capital's capital base while expanding the investment
opportunities for investors, reporters in Jamaica say, citing
NCB Capital's Managing Director Christopher Williams.

Mr. Williams commented to The Observer, "We continue to look for
ways to offer our clients above-average rates of returns,
protection of their principal and tax-efficiency."

The report says that NCB Capital planned the rights issue nine
months after the firm listed its 11.75% preference shares on the
Jamaica Stock Exchange, and almost a year since it completed a
public offering, which was oversubscribed by 16%.  

The Observer notes that NCB Capital offered in July 2006 about
100 million preference stock units to the public valuing US$300
million.  It received subscriptions totaling US$348.5 million.  

Mr. Williams told The Observer that as at March 31, 2007, the
stock has provided solid tax-free returns to its shareholders
with an annualized return of 27.5%.

The success of the last preference share issue is a major reason
why NCB Capital decided to offer a rights issue at this time,
The Observer says, citing NCB Capital's Business Development
Manager Dylan Coke.  He said that at J$3.10 per unit, the new
preference shares are being offered at a discount to the stock's
US$3.22 average trading price since its issuance.  It will do
well in attracting investors.

Mr. Coke commented to The Observer, "The offer went very well
(last year) -- it was over subscribed -- and we felt that the
market was ready for a new issue.  Persons who bought those
shares, between the cap gains and the dividends, would have come
out at something like 27% annualized, so they would have done
very well on that.  That means we have an opportunity to offer
an investor a tax-efficient investment with an attractive rate
of return.  The coupon is 11.75% and when you work it out and
look at what else is in the market, it compares very favorably
to what is out there."

Mr. Coke told the Caribbean Business Report that funds from the
rights issue wasn't going to be used to fund any special
projects.  They would be reinvested in growth instruments.  

"We are not buying any companies, constructing any buildings or
anything like that.  The funds will be invested in securities
that will give us reasonable returns, which is precisely what we
did with the proceeds from the first offer," Mr. Coke explained
to The Observer.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Dec. 18, 2006, Standard & Poor's Rating Services affirmed its
'B/B' counterparty credit and CD ratings on National Commercial
Bank Jamaica Ltd.  S&P said the outlook is stable.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
May 2, 2007, Fitch Ratings affirmed these ratings on Jamaica-
based National Commercial Bank Jamaica Limited:

          -- long-term foreign and local currency Issuer Default
             Ratings (IDR) at 'B+';

          -- short-term foreign and local currency rating at
             'B';

          -- individual at 'D';

          -- support at 4.

The Rating Outlook on the bank's ratings was Stable, in line
with Fitch's view of the sovereign's creditworthiness.  




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


AMERICAN GREETINGS: Paying US$0.10 Per Share Dividend on July 19
----------------------------------------------------------------
American Greetings Corporation's Board of Directors has
approved a quarterly cash dividend of US$0.10 per share.  The
dividend will be payable on July 19, 2007, to shareholders of
record as of July 9, 2007.

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 ratings, but revised its ratings outlook
to stable from negative.

Ratings Affirmed:

   -- Corporate family rating at Ba1;

   -- Probability-of-default rating at Ba1;

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

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

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

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


HARLAN SPRAGUE: S&P Rates US$360 Mil. Senior Facilities at BB
-------------------------------------------------------------
Standard & Poor's Rating Services assigned its loan and recovery
ratings to Harlan Sprague Dawley's proposed US$360 million
senior secured facilities, consisting of a US$15 million super-
priority USD-denominated revolving credit facility, a US$15
million super-priority euro-denominated revolving credit
facility, and a US$330 million first-lien term loan.

The revolving credit facilities are rated 'BB' with a recovery
rating of '1', indicating the expectation for very high (90% to
100%) recovery in the event of a payment default.  The borrower
for the euro-denominated revolver is Harlan Netherlands B.V.  
The term loan is rated 'B+' with a recovery rating of '3',
indicating the expectation for meaningful (50%-70%) recovery in
the event of a payment default.
     
In addition, S&P affirmed all other ratings on Harlan, including
the 'B+' corporate credit rating.  The rating outlook is stable.
      
"The debt is being used to refinance existing bank and mezzanine
debt and to fund the acquisition of a contract research
organization," explained Standard & Poor's credit analyst Alain
Pelanne.
     
The ratings on Harlan, a provider of lab research models and
preclinical services, continue to reflect the company's
operating focus in markets that include some larger competitors,
integration risk related to the acquisition, and its aggressive
debt leverage as a result of its late-2005 sponsor buyout.  
These factors are partially offset by the company's global
reach, customer diversity, and macro-level trends that currently
support spending on the company's services.

Harlan has operations in the United Kingdom, Mexico and Italy.


NUANCE COMMS: US$225MM Loan Increase Cues S&P to Affirm Ratings
---------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its B+/Positive/--
corporate credit and other ratings on Burlington, Massachusetts-
based Nuance Communications Inc. following the announcement the
company will increase its first-lien term loan B by US$225
million.  

Pro forma for the add-on, the bank facility will consist of a
US$75-million revolving credit facility due 2012, and a US$667-
million term loan B due 2013.  The first-lien senior secured
bank loan is rated 'B+', the same as the corporate credit
rating.  The recovery rating of '3' reflects our expectation of
meaningful (50%-70%) recovery of principal by lenders in the
event of a payment default or bankruptcy.
     
The proceeds from the add-on term loan will be used to fund the
cash portion of the merger consideration for Nuance's previously
announced acquisition of VoiceSignal Technologies, Inc., and to
pay related fees and expenses.
      
"The ratings on Nuance reflect the company's rapid growth,
highly acquisitive profile, and moderately high debt leverage,"
said Standard & Poor's credit analyst Martha Toll-Reed.  These
factors are partly offset by a leading presence in the market
for speech recognition products, a significant level of
recurring revenues, and a diverse customer base.
     
Nuance is a global provider of speech recognition software and
imaging solutions, and related services.  The company is focused
primarily on enterprise customers within the financial services,
telecommunications, automotive and health care sectors.  
Revenues for the 12 months ended March 31, 2007, were US$506.7
million.

The company has offices in Australia, Belgium, Japan, Korea,
Hong Kong, India, Mexico and the United Kingdom, among others.


ONEIDA INC: Moody's Places B2 Corporate Family Rating
-----------------------------------------------------
Moody's Investors Service assigned a B3 rating to Oneida, Inc.'s
new senior secured first lien bank facility and a B2 corporate
family rating to the company.  The rating outlook is stable.  
The ratings assigned are based on preliminary terms as outlined
by the company, and are subject to receipt and final review of
executed documents.  These represent first time ratings for
Oneida following its emergence from voluntary bankruptcy in
September 2006.  The company plans to use proceeds from the term
loan and a portion of cash to refinance the existing term loan
that was put in place following the emergence, pay a US$30
million special dividend to preferred equity holders, and pay
related fees, expenses and prepayment penalties.

Ratings assigned are:

  -- Corporate family rating at B2
  -- Probability of default rating at B2
  -- US$120 million first-lien Term Loan due 2013 at B3 (LGD 4,
     62%)

Oneida's B2 corporate family rating reflects the company's lower
debt obligations, stronger liquidity and improved credit metrics
that came as a direct result of its emergence from bankruptcy in
September 2006.  As part of this process, the company was able
to reduce debt by about US$100 million and terminate US$41
million of pension plan obligations. Pro forma for the current
transaction, Moody's estimates debt to be about 5.0 times latest
twelve months' EBITDA of about US$40 million, which is
comfortably in the "B" rating category.  The rating also
reflects the significant improvement in its cost structure as a
result of completing the shift to a 100% outsourced business
model in March 2005, which resulted in gross margin improvement
to over 35% as of March 2007 from about 22% at the end of
January 2005.  These actions should provide sufficient cushion,
enabling the company to invest in future growth.  Further
supporting the rating is the company's leading market positions
in the tableware industry, its diversified customer base in both
the consumer and foodservice segments, and its continued-strong
brand name recognition.

However, the rating is constrained by the significant revenue
declines that have occurred over the last several years as a
result of past service issues and failure to react to changing
consumer tastes, which the company has corrected, and shifting
industry trends and planned declines such as exiting
unprofitable businesses.  Oneida's revenue has declined from
over US$500 million in 2001 to about US$350 million today.  
Although the company has identified and begun to implement
several new growth initiatives, it could be met with challenges
including the need to improve brand relevance, or fundamental
industry issues such as increased penetration from private label
goods, consolidation among department store customers and the
shift toward dual sourcing or direct sourcing from foreign
manufacturers by certain key customers.

The stable outlook reflects Moody's expectation that Oneida's
post-emergence cost structure and adequate liquidity will
provide satisfactory flexibility to withstand near-term
challenges as the company continues to implement its operational
restructuring plan and growth initiatives.  The outlook assumes
that the company will steadily improve operating and financial
performance in 2007, and 2008 through modest revenue growth and
profit retention, will generate solid free cash flows and
steadily reduce debt.

Headquartered in Oneida, New York, Oneida Ltd. (OTC: ONEI) --
http://www.oneida.com/-- manufactures stainless steel and  
silverplated flatware for both the Consumer and Foodservice
industries, and supplies dinnerware to the foodservice industry.  
Oneida also supplies a variety of crystal, glassware and metal
serveware for the tabletop industries.  The Company has
operations in the United States, Canada, Mexico, the United
Kingdom, and Australia.


TCL CORP: Plans Listing of PC Unit to Raise Capital
---------------------------------------------------
China's TCL Corp. may list its personal computer unit to raise
much-needed capital, Reuters reports, citing China Business
News.

According to the report, the company expects to swing to a
profit this year, after which it would apply for a listing of
the PC unit.  The local Chinese paper did not specify which
stock exchange the unit will list, Reuters notes.

TCL, China Business added, is still reorganizing the share
structure of its PC unit and may bring in overseas investors in
preparation for a listing.

Reuters failed to reach a TCL representative for comment.

Headquartered in Guangdong Province, China, TCL Corporation --
http://www.tcl.com-- Corporation is principally engaged in the  
manufacture of TV sets and handset products.

TCL Corp is the parent of Hong Kong-listed TV maker TCL
Multimedia Technology Holdings Ltd and cellphone maker TCL
Communication.

TCL Corporation has set up research and development offices,
together with a dozen research and development branch offices,
in China, the US, France and Singapore. It has over 20
manufacturing and processing plants located in various countries
including China, Poland, Mexico, Thailand and Vietnam.

Xinhua Far East China Ratings downgraded on April 7, 2006, the
domestic currency issuer credit rating of TCL Corporation to
"BB" from "BBB".  The ratings outlook remains negative.




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


ADELPHIA COMMS: Claims Objection Deadline Extended to Sept. 13
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
to extended, until Sept. 13, 2007, the time by which the Quest
Turnaround Advisors, LLC may object to the Reorganized Adelphia
Communications Corporation and its debtor-affiliates'
prepetition and administrative claims.

As of April 30, 2007, approximately 19,900 proofs of claim
asserting approximately US$3,980,000,000,000 in claims had been
filed against the Reorganized Debtors, Shelley C. Chapman, Esq.,
at Willkie Farr & Gallagher LLP, in New York, informed the
Court.

The Reorganized Debtors have filed 17 omnibus objections that
address US$3,960,000,000,000 of filed claims, Ms. Chapman
related.  As a result, approximately US$2,900,000,000,000 of
filed claims against the Debtors and the JV Debtors have been
resolved.  The Reorganized Debtors believe that fewer than 285
claims totaling approximately US$276,000,000 have not yet been
expunged, withdrawn, adjourned or allowed by the Court.

Notwithstanding the brisk pace of the claims process to date,
additional work on claims resolution remains to be done,
Ms. Chapman averred.  An extension, she explained, will permit
the Plan Administrator and the Reorganized Debtors to evaluate
the remaining claims to ensure that all non-meritorious claims
have been included in the Claims Objections, or can be included
as necessary in forthcoming claims objections.

Specifically, an extension will enable the Plan Administrator
and the Reorganized Debtors to:

  (1) evaluate the recently-filed Administrative Claims and file
      objections to those claims as necessary;

  (2) review, reconcile, and file additional claims objections,
      as necessary, to all remaining proofs of claim asserted
      against the Reorganized Debtors; and

  (3) ensure that there has been no oversight or omission in the
      claims review process and that all non-meritorious claims
      filed against the Reorganized Debtors have been or will
      be included on a Claims Objection prior to the Claims
      Objection Deadline.

The extension is not sought for purposes of delay and will not
prejudice any claimants or other parties in interest, Ms.
Chapman assured the Court.

Bank of Montreal, in its capacity as the Olympus Administrative
Agent, had objected to the Reorganized ACOM Debtors' request to
the extent that it enables the Debtors to assert any objections
to the Olympus Bank Claims outside of:

  (1) the Bank Lender Avoidance Complaint as defined under the
      First Modified Fifth Amended Joint Plan of Reorganization
      for Adelphia Communications Corporation and certain of its
      affiliated Debtors;

  (2) the terms of the Fifth Amended Plan; or

  (3) the withdrawal of the reference with respect to the
      Complaint.

The Bank pointed out that the Debtors' request is drafted
broadly.  Neither the Fifth Amended Plan nor the Motion contains
a definition of a "Claims Objection".  Moreover, the Bank said
it is unclear if that term includes the Complaint.

                      About Adelphia Comms

Based in Coudersport, Pennsylvania, Adelphia Communications
Corporation (OTC: ADELQ) -- http://www.adelphia.com/-- is a  
cable television company.  Adelphia serves customers in 30
states and Puerto Rico, and offers analog and digital video
services, Internet access and other advanced services over its
broadband networks.  The company and its more than 200
affiliates filed for Chapter 11 protection in the Southern
District of New York on June 25, 2002.  Those cases are jointly
administered under case number 02-41729.  Willkie Farr &
Gallagher represents the Debtors in their restructuring efforts.  
PricewaterhouseCoopers serves as the Debtors' financial advisor.  
Kasowitz, Benson, Torres & Friedman, LLP, and Klee, Tuchin,
Bogdanoff & Stern LLP represent the Official Committee of
Unsecured Creditors.

Adelphia Cablevision Associates of Radnor, L.P., and 20 of its
affiliates, collectively known as Rigas Manged Entities, are
entities that were previously held or controlled by members of
the Rigas family.  In March 2006, the rights and titles to these
entities were transferred to certain subsidiaries of Adelphia
Cablevision LLC.  The RME Debtors filed for chapter 11
protection on March 31, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10622
through 06-10642).  Their cases are jointly administered under
Adelphia Communications and its debtor-affiliates' chapter 11
cases.  (Adelphia Bankruptcy News, Issue No. 170 & 171;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).

The Court confirmed the Debtors' First Modified Fifth Amended
Joint Chapter 11 Plan of Reorganization on Feb. 13, 2007.


ADELPHIA COMMS: Wants Affiliates' Chapter 11 Cases Closed
---------------------------------------------------------
The Reorganized Adelphia Communications Corporation and its
debtor-affiliates ask the U.S. Bankruptcy Court for the Southern
District of New York to close the Chapter 11 cases of more than
a hundred affiliates pursuant to Sections 350 and 105(a) of the
Bankruptcy Code and Rule 3022 of the Federal Rules of Bankruptcy
Procedure.

The Cases to be Closed, Shelley C. Chapman, Esq., at Willkie
Farr & Gallagher LLP, in New York, relates, are primarily
comprised of each of the ACOM Debtors' cases that have been
merged with and into Adelphia Consolidation, LLC, a wholly owned
non-debtor subsidiary of Adelphia Communications Corporation.  
It is no longer necessary, she avers, to keep the Cases open
pending the resolution of all matters in the ACOM Debtors'
jointly administered cases.

The closing of the Cases will enable the Plan Administrator
under the ACOM Debtors' First Modified Fifth Amended Joint Plan
of Reorganization to more efficiently administer the provisions
and requirements of the Plan, Ms. Chapman states.  It will also
enable the ACOM Debtors to stop incurring quarterly U.S. Trustee
fees for the Cases to be Closed, she adds.

Ms. Chapman assures the Court that the ACOM Debtors' request
will not prejudice a claimant's rights to receive distributions
under the Plan to the extent that that claimant's claim is
ultimately allowed, nor will it alter or modify the terms of the
Plan.

Lead Debtor Adelphia Communication's Chapter 11 case will remain
open until the Plan is fully administered and a final decree is
entered closing the Case, Ms. Chapman clarifies.

The Debtors further ask the Court to, upon proper notice to and
subject to objections filed by parties-in-interest:

  (a) close the cases of other Debtors in accordance with the
      Plan Administrator's determination; and

  (b) reopen, at any time prior to the closing of the Lead Case,
      any of the cases that have been closed.

A list of the Cases to be closed is available for free at:

             http://researcharchives.com/t/s?211e

                      About Adelphia Comms

Based in Coudersport, Pennsylvania, Adelphia Communications
Corporation (OTC: ADELQ) -- http://www.adelphia.com/-- is a  
cable television company.  Adelphia serves customers in 30
states and Puerto Rico, and offers analog and digital video
services, Internet access and other advanced services over its
broadband networks.  The company and its more than 200
affiliates filed for Chapter 11 protection in the Southern
District of New York on June 25, 2002.  Those cases are jointly
administered under case number 02-41729.  Willkie Farr &
Gallagher represents the Debtors in their restructuring efforts.  
PricewaterhouseCoopers serves as the Debtors' financial advisor.  
Kasowitz, Benson, Torres & Friedman, LLP, and Klee, Tuchin,
Bogdanoff & Stern LLP represent the Official Committee of
Unsecured Creditors.

Adelphia Cablevision Associates of Radnor, L.P., and 20 of its
affiliates, collectively known as Rigas Manged Entities, are
entities that were previously held or controlled by members of
the Rigas family.  In March 2006, the rights and titles to these
entities were transferred to certain subsidiaries of Adelphia
Cablevision LLC.  The RME Debtors filed for chapter 11
protection on March 31, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10622
through 06-10642).  Their cases are jointly administered under
Adelphia Communications and its debtor-affiliates' chapter 11
cases.  (Adelphia Bankruptcy News, Issue No. 170 & 171;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).

The Court confirmed the Debtors' First Modified Fifth Amended
Joint Chapter 11 Plan of Reorganization on Feb. 13, 2007.




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


* URUGUAY: State Telco Will Cut Telephony Rates on July 1
---------------------------------------------------------
Uruguay's state-owned telecoms company Antel would reduce
telephony rates on July 1 due to a decrease in value added tax,
published reports say.

Business News Americas relates that the tax will be cut by one
percentage point to 22% from 23%.  The measure is expected to
result to reductions in all public service rates in Uruguay.

According to BNamericas, Antel has lessened the cost of domestic
long distance calling rates to that of a local call on
June 1, 2007, after the Uruguayan government ratified in May
2007 a cut in pension payments for Antel, which the telecoms
firm thinks would result to US$14 million yearly savings.

Domestic telephony traffic had a slight boost in June 2007, as a
result of the drop in telephony rates, BNamericas notes, citing
Antel.

Antel would invest some US$90 million this year, which is 29%
greater than US$70 million last year.  Investments will be
chiefly allocated for increasig broadband infrastructure,
offering new services through fixed line telephony and deploying
mobile base stations, BNamericas states.

                       *     *     *

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

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




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


PETROLEOS DE VENEZUELA: Ryder Scott Spots Crude in Carabobo
-----------------------------------------------------------
Venezuelan state-owned firm Petroleos de Venezuela SA said in a
statement that reservoir appraisal company Ryder Scott has
estimated there are about 28.7 billion barrels of crude in the
Carabobo 3 block in Orinoco.

Business News America reports that Petroleos de Venezuela
calculations based on Ryder Scott's estimate says the reserve is
considered "original oil on site," which means that proven
reserves in the block are 20% of the total, or about 5.7 billion
barrels.

Petroleos de Venezuela said in a statement that the
certification is part of the Orinoco Magna Reserve project,
which seeks to certify 260 billion barrels in retrievable oil
spread over two dozen blocks in the Orinoco belt.

Ryder Scott had certified some 30.7 billion barrels in the
Carabobo 2 block and about 45.5 billion barrels in Carabobo 1,
BNamericas states.

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

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


* VENEZUELA: Cantv Will Invest VEB1.6 Billion This Year
-------------------------------------------------------
Cantv President Socorro Hernandez told Venezuelan reporters that
the company will invest some VEB1.6 billion this year, a 50%
increase compared to last year.

Cantv will concentrate on "social profitability," than on
economic profitability, Business News Americas relates, citing
Mr. Hernandez, who was referring to Venezuelan President Hugo
Chavez's plans for network expansion to areas that previously
didn't have telecoms coverage.

Cantv told BNamericas that it would increase coverage in the
fixed line sector, installing about 400,000 fixed lines this
year and some 1.2 million lines over the next 18 months.

The Venezuelan government will interconnect Cantv's fiber optic
network with all fiber optic networks in the nation to boost the
firm's capacity, BNamericas says, citing Mr. Hernandez.

According to BNamericas, investments include the deployment of
300 new mobile base stations and all infrastructure needed to
launch Global System for Mobile Communications services.  Cantv
also expects to increase public telephony in Venezuela by
deploying some 5,000 new public telephones nationwide next year.  
The company also wants to launch of Internet Protocol Television
services in 2008.

Cantv would promote local production of telephony directories
and prepaid telephony cards, Mr. Hernandez told BNamericas.

Cantv will also be in charge of the administration of satellite
Venesat 1.  The satellite is being built in China, BNamericas
states, citing Mr. Hernandez.

As reported in the Troubled Company Reporter-Latin America on
May 17, 2007, the Venezuelan government has purchased a
controlling stake in Cantv, for US$1.3 billion.  The government
increased its stake in Cantv to 86.2% from 6.6% after purchasing
the shares through tender offer on the stock exchanges in
Caracas and New York.  Cantv said in a statement that the New
York Stock Exchange was suspending trading with immediate effect
of the firm's American Depositary Shares, each representing
seven class D shares, due to the company's nationalization.  
NYSE said the firm's ADSs were no longer suitable for continued
listing due to the current circumstances after the completion of
the tender offer by the Venezuelan government.  Cantv also chose
on May 21 a new board during an extraordinary shareholders
meeting, effectively returning control of the company to the
state.  Socorro Hernandez heads the board for the 2007-08
period.

                        *     *     *

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


* Large Companies with Insolvent Balance Sheets
-----------------------------------------------

                                Total
                                Shareholders  Total
                                Equity        Assets
Company                 Ticker  (US$MM)       (US$MM)
-------                 ------  ------------  -------
Arthur Lange             ARLA3      (8.88)      56.71
Kuala                    ARTE3     (33.57)      11.86
Ceper-Inv                CEP        (7.77)     120.08
Ceper-B                  CEP/B      (7.77)     120.08
CIC                      CIC    (1,883.69)  22,312.12
Telefonica Hldg          CITI   (1,481.31)     307.89
Telefonica Hldg          CITI5  (1,481.31)     307.89
SOC Comercial PL         COME     (738.69)     456.86
Telefonica Movil         COMOVC1   (45.24)     704.39
Angel Estrada            ESTR      (68.23)      68.97
Estrada-A                ESTR5     (68.23)      68.97
Gazola                   GAZ03     (43.13)      22.28
Hercules                 HETA3    (233.64)      33.23
IMPSAT Fiber Networks    IMPTQ     (17.16)     535.01
Kepler Weber             KEPL3     (22.20)     478.81
Minupar                  MNPR3     (27.02)     206.98
Telebras-CM RCPT         RCTB30   (139.38)     235.03
Schlosser                SCL03     (55.17)      51.93
Telebras SA              TELB3    (139.38)     235.03
Telebras-CM RCPT         TELE31   (139.38)     235.03
Telebras SA              TLBRON   (139.38)     235.03
Varig SA                 VAGV3  (8,194.58)   2,169.10
FER C Atlant             VSPT3    (151.49)   1,914.18
WIEST                    WISA3    (107.73)      92.66


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

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

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

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

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

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


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