TCRLA_Public/070711.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

            Wednesday, July 11, 2007, Vol. 8, Issue 136

                          Headlines

A R G E N T I N A

ALITALIA SPA: AirOne Financial Partners May Drop Support
DELTA AIR: Fitch Puts EETC's Ratings on Positive Watch
LAS MARTAS: Seeks Reorganization OK in Buenos Aires Court
NIPPON SHEET: Revises Financial Results for Fiscal Year 2008
QUEBECOR: Moody's Puts B2 Rating on US$750MM Sr. Unsec. Notes

SADYE SA: Proofs of Claim Verification Ends on Aug. 13
TRANSPORTES MORRESI: Verifies Proofs of Claim Por Via Incidental
TRANSPORTES NICOLITA: Seeks for Reorganization Approval
WENDYS INTERNATIONAL: Discloses Second Quarter Same-Store Sales


B E L I Z E

* BELIZE: Moody's Comments on Caa1 Foreign Currency Rating


B E R M U D A

BLUE TERCEL: Sets Final General Meeting for July 16
JUPITER POWER: Proofs of Claim Filing Is Until July 13
JUPITER POWER: Sets Final General Meeting for July 30


B R A Z I L

BANCO NACIONAL: Okays BRL39.2MM Financing for Genetic Research
DELPHI CORP: Ends Investment Accord with Cerberus Capital
HEXION SPECIALTY: Apollo Ups Huntsman Offer to US$28 Per Share
HUNTSMAN CORP: Apollo Increases Offer to US$28 Per Share
JAPAN AIRLINES: To Boost Overseas Flights by 70%

METSO CORP: Division to Provide Power Boiler to Scotland's UPM
METSO CORP: Subsidiary Expands Production Capacity at Lapua
METSO CORP: Unit to Supply Materials Handling to Brazilian Firm
NORTEL NETWORKS: Wins Contract from Taiwan's Cathay United
PETROLEO BRASILEIRO: Resumes Oil Production in P-50 Platform

PETROLEO BRASILEIRO: Workers Want Unit To Extend Union Benefits


C A Y M A N   I S L A N D S

ABACUS FUND: Proofs of Claim Filing Ends on July 27
AMMC CDO: Proofs of Claim Must be Filed by July 26
ANTHRACITE BALANCED: Proofs of Claim Filing Ends on July 25
ANTHRACITE BALANCED: Sets Final Shareholders Meeting for July 25
AS ASSIST: Proofs of Claim Filing Deadline Is July 21

BAILEY COATES: Proofs of Claim Filing Ends on July 27
BT BRAM: Proofs of Claim Filing Deadline Is July 27
BT INVESTMENTS: Proofs of Claim Filing Is Until July 27
BT YOSEMITE: Proofs of Claim Must be Filed by July 27
DEUTSCHE AOTEAROA: Proofs of Claim Filing Deadline Is July 27

CELLON INT'L: Proofs of Claim Must be Filed by July 16
HEXA PROPERTIES: Proofs of Claim Filing Ends on July 21
IVY ENHANCED: Proofs of Claim Must be Filed by July 29
JAPAN OFFICE: Proofs of Claim Filing Deadline Is July 29
MANLEY INVESTMENT: Proofs of Claim Filing Ends on July 22

MARBLE LIMITED: Proofs of Claim Must be Filed by July 30
MARBLE LIMITED: Sets Final Shareholders Meeting for Aug. 6
QUARTZ LIMITED: Proofs of Claim Filing Ends on July 30
QUARTZ LIMITED: Sets Final Shareholders Meeting for Aug. 6
ZESTY CO: Proofs of Claim Must be Filed by July 25


C H I L E

BELVEDERE SA: S&P Places Long-Term Corporate Credit Rating at B


C O L O M B I A

ECOPETROL: Will Participate in Central American Oil Plant Tender
GENERAL NUTRITION: Parent Opens 1000TH Franchise Store in Sofia
GRAN TIERRA: Concludes Six Drill Stem Tests on Costayaco-1

* COLOMBIA: Launches First Biodiesel Plant in Codazzi


C O S T A   R I C A

ALCATEL-LUCENT: Bags Contract from Hanaro Telecom
SAMSONITE CORP: CVC Merger Deal Cues Moody's To Review Ratings

* COSTA RICA: State Firm Investing US$15 Million for Equipment


C U B A

* CUBA: Installs Over 6,000 Windmills


D O M I N I C A N   R E P U B L I C

SERVICEMASTER: Fitch Downgrades Issuer Default Rating to B


E C U A D O R

PETROLEO BRASILEIRO: Ecuadorian Gov't May Cancel Contract

* ECUADOR: President Plans To Split Energy & Mines Ministry


E L   S A L V A D O R

AES CORP: Alamitos Power Station Units Restart Operation
AES CORP: Says Commission Improperly Gets Proof for Zoning Law

* EL SALVADOR: State Firm Expects Wind Power Project Report


G R E N A D A

DIGICEL LTD: Using ECI Telecom's Software to Boost Services


G U A T E M A L A

BRITISH AIRWAY: Panmure Gordon Puts Hold Rating on Firm's Shares


M E X I C O

ALERIS INTL: Inks Deal to Buy Wabash Alloys for US$194 Million
CORPORACION DURANGO: S&P Puts B+ Long-Term Corp. Credit Rating
FORD MOTOR: Submits Bid for Romanian Auto Assembly Plant
FORD MOTOR: Sets July 19 Deadline for Jaguar & Land Rover Bids
GENERAL MOTORS: European Arm Unveils Environmental Strategy

GRUPO IUSACELL: Azteca Shareholders Getting 1 Share Per C96 CPOs
LEAR CORP: American Real Ups Offer to US$37.25 Per Share
LEAR CORP: To Adjourn Annual Meeting to July 16 on Amended Offer
MEGA BRANDS: S&P Affirms Corporate Credit Rating at B+
TV AZTECA: Shareholders Getting 1 Iusacell Share Per C96 CPOs


P A N A M A

* PANAMA: Constructora Urbana Bags First Canal Award


P U E R T O   R I C O

AVNET INC: Unit Acquires UK-Based Interconnect


V E N E Z U E L A

DAIMLERCHRYSLER AG: Chery & Chrysler Finalize Cooperative Pact
DAIMLERCHRYSLER AG: Chrysler's June 2007 US Sales Dip 1.4%
DAIMLERCHRYSLER AG: US Sales Drop 2% to 202,936 for June 2007
NORTHWEST AIRLINES: Fitch Puts EETC's Ratings on Positive Watch
PETROLEOS DE VENEZUELA: Says Statoil Finds Oil Well in Deltana

PETROLEOS DE VENEZUELA: Subcontracted Workers Stop Drills


                         - - - - -


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


ALITALIA SPA: AirOne Financial Partners May Drop Support
--------------------------------------------------------
AirOne S.p.A.'s financial partners may drop their support for
the carrier in its bid to acquire the Italian government's 39.9%
stake in Alitalia S.p.A., Andrew Frye of Bloomberg News reports
citing Italian daily Il Sole 24 Ore.

The financial backers -- Intesa-Sanpaolo S.p.A. Morgan Stanley,
Lehman Brothers, Nomura Holdings Inc., and Banca Monte Paschi di
Siena -- are apprehensive of AirOne chief Carlo Toto's plan not
to inject fresh capital in the bid, Il Sole relates.

The lenders are also unhappy that Toto would maintain a majority
stake in the consortium, Il Sole adds.

As reported in the TCR-Europe on June 29, 2007, AP Holding
S.p.A., AirOne's acquisition vehicle, was seeking a valuation in
preparation for its Alitalia bid.

The valuation, Il Sole relates, will allow AP Holding's
financial backers to support its bid for the national carrier.

PricewaterhouseCoopers have estimated AP Holding's value to be
worth between EUR850 million and EUR1 billion, Il Sole says.

AP Holding will try to outbid rival MatlinPatterson Global
Advisers LLC.

The bidders have until July 12, 2007, to submit a binding offer.

                          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, among others.  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.


DELTA AIR: Fitch Puts EETC's Ratings on Positive Watch
------------------------------------------------------
In the wake of Delta Air Lines' emergence from Chapter 11
bankruptcy protection on April 30, 2007, Fitch Ratings has
placed Delta Enhanced Equipment Trust Certificate transactions
on Rating Watch Positive.  EETC's are hybrid corporate --
structured debt obligations in which payment on the notes is
effectively supported by the underlying corporate entity, while
structured elements of the transaction provide protection to
investors in the event of issuer default.  As such, Fitch's
ratings on EETC transactions begin with the underlying Issuer
Default Rating of the issuing entity and are adjusted upward
depending on the structural enhancements in place.  Based on the
foregoing, Fitch lowered its EETC ratings for Delta following
their Sept. 14, 2005 bankruptcy filing.  As a result of Delta's
re-emergence from bankruptcy protection, Fitch anticipates that,
subject to the availability of certain information related to
the collateral and any modifications to transaction structures,
ratings on EETC tranches will improve due to the improvement in
the implied credit-worthiness of the issuer.  The affected EETC
classes are:

Delta Air Lines Pass Through Certificates, Series 1992

   -- Class B2 rated 'CC/DR4'.

Delta Air Lines Pass Through Certificates, Series 1993

   -- Class A2 rated 'CC/DR4'.

Delta Air Lines Pass Through Certificates, Series 2000-1

   -- Class A1 rated 'B';
   -- Class A2 rated 'B';
   -- Class B rated 'CCC / DR1'.

Delta Air Lines Pass Through Certificates, Series 2001-1

   -- Class A1 rated 'B';
   -- Class A2 rated 'B';
   -- Class B rated 'CCC/DR1'.

Delta Air Lines European Enhanced Equipment Trust Certificates,
Series 2001-2

   -- Class A rated 'BBB-';
   -- Class B rated 'CCC/DR1'.

Delta Air Lines Pass Through Certificates, Series 2002-1

   -- Class C rated 'CC/DR5'.

                      About Delta Air

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

The Debtors filed a chapter 11 plan of reorganization and
disclosure statement explaining that plan on Dec. 19, 2007.
On Jan 19, 2007, they filed revisions to the plan and disclosure
statement, and submitted further revisions to the plan on
Feb. 2, 2007.  On Feb. 7, 2007, the Court approved the Debtors'
disclosure statement.  In April 2007, the Court confirmed the
Debtors' plan.


LAS MARTAS: Seeks Reorganization OK in Buenos Aires Court
---------------------------------------------------------
Las Martas S.R.L. has requested for reorganization approval
after failing to pay its liabilities.

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

The case is pending in the National Commercial Court of First
Instance in Buenos Aires.

The debtor can be reached at:

          Las Martas S.R.L.
          Monsenor Bufano 2154
          Buenos Aires, Argentina


NIPPON SHEET: Revises Financial Results for Fiscal Year 2008
------------------------------------------------------------
Nippon Sheet Glass Company, Limited has posted its revision for
its full-year results for the fiscal year ending March 31, 2008.

Net income for the current fiscal year was originally estimated
to be at JPY15 billion and Nippon Sheet is now revising it to be
between JPY35-45 billion, an increase of JPY20-30 billion.

However net sales and income before extraordinary items remain
the same at JPY830 billion and JPY24 billion, respectively.

With the acquisition of its Australia and New Zealand unit by
CSR, the glass manufacturer now estimates its extraordinary
income to be between JPY25-35 billion because they are still
finalizing the value of the assets and liabilities of the
business and also the resulting income tax which should be
calculated based upon the said value.

For its first quarter (April 1, 20007- September 30, 2007)
forecast, the company expects its net income to increase to
between JPY29-39 billion from the May 31, 2007 forecast of JPY9
million.  Net sales and income before extra-ordinary items
remain the same at JPY420 billion and JPY12 billion
respectively.

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

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

                        *     *     *

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


QUEBECOR: Moody's Puts B2 Rating on US$750MM Sr. Unsec. Notes
-------------------------------------------------------------
Moody's Investors Service rated Quebecor Media Inc.'s (QMI) new
US$750 million senior unsecured note issue B2 (to be issued in
two tranches).  

At the same time, QMI's Ba3 corporate family rating and stable
ratings outlook were affirmed.  As well, the notes issue adjusts
QMI's waterfall of debts, necessitating ratings and loss given
default assessment upgrades on certain existing instruments (see
ratings list below).  

The rating actions were prompted by the July 9 announcement of
the new note issue. This followed two prior announcements:

On July 5, 2007 QMI announced an agreement to acquire Osprey
Media Income Fund, a publicly traded publisher of community
newspapers and magazines for an aggregate purchase price of
approximately CDN$577.0 million (including assumed debt of
CDN$161 million);

On June 1, 2007, QMI announced its intention to acquire all of
the outstanding common shares of Nurun Inc., a publicly traded
company providing new media consulting services for aggregate
cash consideration of approximately CDN$68.0 million.  Should
the two acquisition transactions close, it being noted they are
both subject to standard closing conditions, the transactions
will consume approximately CDN$645 million of the proceeds of
the new note issue.  Should they not close, QMI has indicated
that the proceeds will be used to fund capital expenditures or
for other as yet unspecified acquisition opportunities or to
repay existing debt.  The remaining balance of proceeds is to be
used to pay external obligations and pay expenses.  The
prospective Osprey and Nurun transactions do not, individually
or in the aggregate, impact QMI's expected credit protection
measures sufficiently to warrant rating changes.  With the other
uses of the new financing, either paying existing third party
obligations or refinancing existing indebtedness, also being
essentially neutral to credit protection measures, the proposed
financing is also assessed as having negligible ratings impact,
allowing QMI's CFR and outlook to be affirmed.

Assignments:

Issuer: Quebecor Media, Inc.

  -- Senior Unsecured Regular Bond/Debenture, Assigned a range
     of 87 - LGD5 to B2

Upgrades:

Issuer: Quebecor Media, Inc.

  -- Senior Secured Bank Credit Facility (unchanged at B1), LGD:
     Upgraded to 67 - LGD4 from 79 - LGD5

  -- Senior Unsecured Regular Bond/Debenture (unchanged at B2),
     LGD: Upgraded to 87 - LGD5 from 92 - LGD6

Issuer: Sun Media Corporation

  -- Senior Secured Bank Credit Facility (unchanged at Baa3),
     LGD: Upgraded to 04 - LGD1 from 07 - LGD1

  -- Senior Unsecured Regular Bond/Debenture, Upgraded to Ba1
     range of 26 - LGD2 from Ba2 range of 37 - LGD3

Issuer: Videotron Ltee

  -- Senior Unsecured Regular Bond/Debenture, Upgraded to Ba1
     range of 26 - LGD2 from Ba2 range 37 - LGD3

Other important rating influences include expectations of
continued top-line and cash flow growth resulting from robust
activity at QMI's cable subsidiary Videotron Ltd. (Videotron).  
In turn, this results from the successful bundled deployment of
its cable telephony product, and is expected to be the key
driver behind improved cash generation over the next several
quarters (subsequently, saturation will cause growth to return
to more normal levels).  In addition, capital expenditures on
new printing presses at QMI's Sun Media Corporation newspaper
subsidiary are largely complete.  The related cash drain should
be replaced by margin gains as cost savings from more efficient
presses are internalized.  It is also noted that QMI's
consolidated operations are strengthened by the diversity
contributed by its smaller entertainment, broadcasting and
Internet portal operations, particularly TVA Inc., the largest
French broadcaster in North America.  There are several factors
that provide offsetting influences, the first of which is the
company's desire to grow more quickly than organic expansion
will facilitate.  The Osprey and Nurun transactions are
manifestations of this.  In addition, QMI has indicated that it
wants to be a consolidator in the newspaper segment and has
discussed being a potential bidder in the pending Canadian radio
spectrum auction.  Should the company be a successful bidder,
even should the CRTC mandate things such as incumbent tower
sharing and roaming so as to provide new entrants with the best
possible opportunity for success, it is likely that significant
cash flow will be required to be allocated for several years in
order to build a credible business.  In addition, Videotron has
ongoing network capital expenditure requirements and income tax
is expected to provide meaningful leakage within two years.  
Lastly, QMI has shareholders that expect cash returns, and it is
expected that cash dividends will be declared should cash flow
be available.  The aggregate of the uncertainties provided by
these influences offsets the positive momentum provided by
Videotron's results and causes the ratings outlook to remain
stable.  

Quebecor Media Inc., a subsidiary of Quebecor Inc., owns
operating companies in numerous media-related businesses:
Videotron Ltd., the largest cable operator in Quebec and a major
Internet Service Provider and provider of telephone and business
telecommunications services; Sun Media Corporation, Canada's
largest national chain of tabloids and community newspapers; TVA
Group Inc., operator of the largest French-language general-
interest television network in Quebec, a number of specialty
channels, and the English-language general-interest station Sun
TV; Canoe Inc., operator of a network of English- and French-
language Internet properties in Canada; Nurun Inc., a major
interactive technologies and communications agency with offices
in Canada, the United States, Europe and Asia; companies engaged
in book publishing and magazine publishing; and companies
engaged in the production, distribution and retailing of
cultural products, namely Archambault Group Inc., the largest
chain of music stores in eastern Canada, TVA Films, and Le
SuperClub Videotron ltee, a chain of video and video game rental
and retail stores.

Headquartered in Montreal, Canada, the company has global
facilities in India, France and Argentina.


SADYE SA: Proofs of Claim Verification Ends on Aug. 13
------------------------------------------------------
Jorge Hugo Basile, the court-appointed trustee for Sadye S.A.'s
bankruptcy proceeding, verifies creditors' proofs of claim until
Aug. 13, 2007.

Mr. Basile will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance in Buenos Aires will determine if the verified claims
are admissible, taking into account the trustee's opinion, and
the objections and challenges that will be raised by Sadye and
its creditors.

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

A general report that contains an audit of Sadye's accounting
and banking records will be submitted in court.

Infobae did not state the reports submission dates.

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

The trustee can be reached at:

          Jorge Hugo Basile
          J.E. Uriburu 782
          Buenos Aires, Argentina


TRANSPORTES MORRESI: Verifies Proofs of Claim Por Via Incidental
----------------------------------------------------------------
The court-appointed trustee for Transportes Morresi S.R.L.'s
bankruptcy proceeding verifies creditors' proofs of claim por
via incidental.

Infobae did not state the name of the trustee.

The trustee will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance in Buenos Aires will determine if the verified claims
are admissible, taking into account the trustee's opinion, and
the objections and challenges that will be raised by Transportes
Morresi and its creditors.

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

A general report that contains an audit of Transportes Morresi's
accounting and banking records will be submitted in court.

Infobae did not state the reports submission dates.

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

The debtor can be reached at:

          Transportes Morresi S.R.L.
          Tucuman 126, Alvarez
          Santa Fe, Argentina


TRANSPORTES NICOLITA: Seeks for Reorganization Approval
-------------------------------------------------------
Transportes Nicolita S.R.L. has requested for reorganization
approval after failing to pay its liabilities.

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

The case is pending in the National Commercial Court of First
Instance in Buenos Aires.

The debtor can be reached at:

          Transportes Nicolita S.R.L.
          Uruguay 467
          Buenos Aires, Argentina


WENDYS INTERNATIONAL: Discloses Second Quarter Same-Store Sales
---------------------------------------------------------------
Wendy's International, Inc., disclosed Friday preliminary same-
store sales for the second quarter of 2007, which ended July 1.

Average same-store sales at U.S. company restaurants increased
0.7% for the period, while average same-store sales at U.S.
franchise restaurants increased 0.4%.

"We've now delivered 13 consecutive months of positive same-
store sales," said Chief Executive Officer and President Kerrii
Anderson.  "We built on positive sales a year ago and lapped our
highest unit volumes of 2006 in June. Our menu management
strategy, new products, and improving marketing and restaurant
operations have enabled us to continue our momentum.

"Second-quarter same-store sales growth was not as strong as the
first quarter as we continue to execute our market-based pricing
strategy. We believe this is impacting transactions in the short
term, but will position us to produce profit expansion in the
future."

                         About Wendy's

Headquartered in Dublin, Ohio, Wendy's International Inc. (NYSE:
WEN) -- http://www.wendysintl.com/-- and its subsidiaries
operate, develop, and franchise a system of quick service and
fast casual restaurants in the United States, Canada, Mexico,
Argentina, among others.

                          *     *     *

As reported in the Troubled Company Reporter on June 21, 2007,
Moody's Investors Service lowered all ratings of Wendy's
International, Inc. and placed all ratings on review for further
possible downgrade.  Affected ratings include the company's
Ba2 corporate family rating which was lowered to Ba3 and
its (P)B1 preferred stock shelf rating which was lowered to
(P)B2.

Additionally, Standard & Poor's Ratings Services lowered its
corporate credit and senior unsecured debt ratings on Wendy's
International Inc. to 'BB-' from 'BB+'.  All ratings remain on
CreditWatch with negative implications, where they were placed
on April 26, 2007.




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


* BELIZE: Moody's Comments on Caa1 Foreign Currency Rating
----------------------------------------------------------
Moody's Investors Service said in its annual report on Belize
that the Caa1 foreign currency government bond rating and stable
outlook reflect a very high risk of default despite the
substantial liquidity relief that was provided as a result of
this February's restructuring.

The Caa1 rating and Moody's assessment of a low risk of a
payments moratorium in the event of a government bond default
are the basis for the B2 foreign currency country ceiling for
bonds.

"Even though the debt service profile has been substantially
alleviated, Belize's debt burden is still quite onerous," said
Moody's Senior Analyst Alessandra Alecci, author of the report.
On the upside, Belize has been able to navigate through a very
challenging crisis without severe macroeconomic dislocations.

The analyst said Belize is a small, very open economy that is
extremely vulnerable to exogenous shocks, leaving little room
for slippage, as the government's ability to adjust is very
limited.

She added there are considerable concerns regarding the
government's ability to sustain a very tight fiscal policy in
the context of a pegged exchange rate over the medium-term.  
"Belize's external liquidity position, while improved, remains
precarious, particularly considering the exchange rate regime
and low foreign exchange reserves," said Alecci.

The country's macroeconomic performance was remarkably favorable
in 2006, despite the developments that eventually forced the
government to restructure its foreign currency obligations. "GDP
growth reached 5.8%, well above the 3.5% recorded in 2005,
mostly driven by exports, especially oil, and fueled by double-
digit growth in credit to the private sector," said Alecci.

                        *     *     *

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




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


BLUE TERCEL: Sets Final General Meeting for July 16
---------------------------------------------------
Blue Tercel Ltd.'s final general meeting is scheduled on
July 16, 2007, at 11:00 a.m., at:

         Corner House
         Church & Parliament Streets
         P.O. Box HM 1556
         Hamilton, HM FX
         Bermuda

These matters will be taken up during the meeting:

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

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

     -- passing of a resolution dissolving the company.


JUPITER POWER: Proofs of Claim Filing Is Until July 13
------------------------------------------------------
Jupiter Power Holdings Ltd.'s creditors are given until
July 13, 2007, to prove their claims to Jennifer Y. Fraser, 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.  Jupiter
Power's shareholders agreed on June 25, 2006, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.

The liquidator can be reached at:

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


JUPITER POWER: Sets Final General Meeting for July 30
-----------------------------------------------------
Jupiter Power Holdings Ltd.'s final general meeting is
scheduled on July 30, 2007, at 9:00 a.m., at:

         Canon's Court
         22 Victoria Street
         Bermuda

These matters will be taken up during the meeting:

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

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

     -- passing of a resolution dissolving the company.




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


BANCO NACIONAL: Okays BRL39.2MM Financing for Genetic Research
--------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social said in a
statement that it has authorized BRL39.2 million in financing
for genetic research to boost the productivity of sugarcane,
eucalyptus and citrus tree crops.

Business News Americas relates that the funding will go to two
biotechnology firms of Brazilian industrial group Votorantim.  
"The research could benefit biofuels production in Brazil."

BNamericas notes that of the BRL39.2 million, some BRL10.3
million will be allotted for sugarcane genetic research company
Canavialis, while BRL28.9 million will be allocated to sister
firm Allelyx.

Votorantim Novos Negocios Executive Director Fernando Reinach
commented to BNamericas, "We are in the final stages of
development of the products, which should be ready in about
three to four years."

Votorantim Novos controls Canavialis and Allelyx, the report
says.

Banco Nacional told BNamericas that for sugarcane, the idea is
to boost the resistance to droughts and improve resistance to
diseases.  This could increase the competitiveness of sugar and
ethanol production in Brazil.

According to BNamericas, eucalyptus and citrus trees are
important economic crops in Brazil.

Mr. Reinach told BNamericas that in the sugar and ethanol
sector, Votorantim Novos will supply the technology, which
includes the first transgenic sugarcane breed developed in the
world, to third-party firms.  The products being developed could
boost the productivity of sugarcane per hectare by 80% in the
case of Allelyx's recombinant strain.  Canavialis' product would
increase productivity by up to 20%.

Mr. Reinach commented to BNamericas, "You produce more in the
same planted area."

The report says that Brazilian sugar and ethanol producer Cosan
is committed to using Votorantim Novos' new sugarcane strains in
Brazil or in other countries.

Mr. Reinach told BNamericas, "Our agreement is to develop
strains that will grow in frontier regions where sugarcane has
never been planted before."

BNamericas relates that once developed, Votorantim Novos will
try to seek government approval for the use of "transgenic
strains."  Brazil lacks clear laws and rules for the use of
transgenic crops.

"[Biotechnology] is a high-risk business.  If you cannot develop
your product, you have zero return on investments.  But if you
manage to develop the product, it's a very high return," Mr.
Reinach told BNamericas.

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

                        *     *     *

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


DELPHI CORP: Ends Investment Accord with Cerberus Capital
---------------------------------------------------------
Delphi Corp. told Dayton Business Journal that it has ended an
investment accord with private equity group Cerberus Capital
Management and other investors who planned to invest up to
US$3.4 billion to help the firm emerge from bankruptcy.

According to Dayton Business, Delphi said in April 2007 that it
didn't expect Cerberus to remain as an investor.  The company
said it expects to enter into new agreements with other
investors later in July.  The board of directors will hold a
meeting on July 16 to discuss the issue.

Dayton Business relates that with Cerberus Capital out of the
deal, these firms could be potential investors for Delphi:

          -- Appaloosa Management LP,
          -- Harbinger Capital Partners Master Fund I,
          -- Merrill Lynch & Co., and
          -- UBS Securities LLC.

The report says that Highland Capital Management, Delphi's
largest shareholder, approached the company about an alternative
investment deal.

Delphi told Dayton Business that the move won't obstruct its
emergence from Chapter 11 bankruptcy, which would be by the end
of the year.  The company is negotiating with its second and
third largest unions IUE-CWA and United Steelworkers of America.  
It hopes to reach a deal as soon as possible.  Delphi reached a
deal with its largest union, the United Auto Workers, in June
2007.  The firm is working on a comprehensive deal with General
Motors Corp.  It plans to submit the settlement to the court as
part of its reorganization plan.

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

The company filed for chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481).  John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts.  Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors.  As of
Mar. 31, 2007, the Debtors' balance sheet showed
US$11,446,000,000 in total assets and US$23,851,000,000 in total
debts.  The Debtors' exclusive plan-filing period expires on
July 31, 2007.


HEXION SPECIALTY: Apollo Ups Huntsman Offer to US$28 Per Share
--------------------------------------------------------------
Apollo Management LP, through Hexion Specialty Chemicals Inc.,
increased its offer to buy Huntsman Corp. to US$28 per share,
the Wall Street Journal reports.  With the new offer, the
transaction is now valued at US$10.5 billion, including debt,
the report adds.

As reported in the Troubled Company Reporter on July 6, 2007,
Apollo had previously offered to acquire all of Huntsman's
outstanding common stock at US$27.25 per share in cash, topping
Basell International Holdings BV's US$25.25 per share in cash
offer.

                        About Huntsman

Huntsman Corp. -- http://www.huntsman.com/-- manufactures and
markets differentiated and commodity chemicals.  Its operating
companies manufacture products for a variety of global
industries including chemicals, plastics, automotive, aviation,
textiles, footwear, paints and coatings, construction,
technology, agriculture, health care,  detergent, personal care,
furniture, appliances and packaging.

                     About Hexion Specialty

Based in Columbus, Ohio, Hexion Specialty Chemicals Inc. --
http://www.hexion.com/-- serves the global wood and industrial   
markets through a broad range of thermoset technologies,
specialty products and technical support for customers in a
diverse range of applications and industries.  Hexion Specialty
Chemicals is owned by an affiliate of Apollo Management, L.P.  
The company has locations in China, Australia, Netherlands, and
Brazil. It is an Apollo Management L.P. portfolio company.  
Hexion had 2006 sales of US$5.2 billion and employs more than
7,000 associates.

                          *     *     *

As reported in the Troubled Company Reporter on July 9, 2007,
Standard & Poor's Ratings Services placed its 'B' corporate
credit rating and other ratings on Columbus, Ohio-based Hexion
Specialty Chemicals Inc. on CreditWatch with negative
implications.  The ratings on related entities were also placed
on CreditWatch.


HUNTSMAN CORP: Apollo Increases Offer to US$28 Per Share
--------------------------------------------------------
Apollo Management LP, through Hexion Specialty Chemicals Inc.,
increased its offer to buy Huntsman Corp. to US$28 per share,
the Wall Street Journal reports.  With the new offer, the
transaction is now valued at US$10.5 billion, including debt,
the report adds.

As reported in the Troubled Company Reporter on July 6, 2007,
Apollo had previously offered to acquire all of Huntsman's
outstanding common stock at US$27.25 per share in cash, topping
Basell International Holdings BV's US$25.25 per share in cash
offer.

                     About Hexion Specialty

Based in Columbus, Ohio, Hexion Specialty Chemicals Inc. --
http://www.hexion.com/-- serves the global wood and industrial   
markets through a broad range of thermoset technologies,
specialty products and technical support for customers in a
diverse range of applications and industries.  Hexion Specialty
Chemicals is owned by an affiliate of Apollo Management, L.P.  
The company has locations in China, Australia, Netherlands, and
Brazil. It is an Apollo Management L.P. portfolio company.  
Hexion had 2006 sales of US$5.2 billion and employs more than
7,000 associates.

                        About Huntsman

Huntsman Corp. -- http://www.huntsman.com/-- manufactures and
markets differentiated and commodity chemicals.  Its operating
companies manufacture products for a variety of global
industries including chemicals, plastics, automotive, aviation,
textiles, footwear, paints and coatings, construction,
technology, agriculture, health care,  detergent, personal care,
furniture, appliances and packaging.  Originally known for
pioneering innovations in packaging and, later for rapid and
integrated growth in petrochemicals, Huntsman today has
operations in 24 countries, including Argentina, Belarus,
Japan, Luxembourg, Malaysia, Spain and teh United Kingdom, among
others.  The company had 2006 revenues from all operations of
over US$13 billion.

                      *     *     *

As reported in the Troubled Company Reporter on June 28, 2007,
Moody's Investors Service placed the debt ratings and the
corporate family ratings (CFR -- Ba3) for Huntsman Corporation
and Huntsman International LLC, a subsidiary of Huntsman under
review for possible downgrade.


JAPAN AIRLINES: To Boost Overseas Flights by 70%
------------------------------------------------
Japan Airlines International Company, Limited, will boost
overseas flights by about 70% as they take routes from the
parent company to cut its operating cost, Chris Coooper, of
Bloomberg News, reports.

According to Mr. Cooper, JALways Co., whose operating costs are
about 10 percent lower than Japan Air's, will start flights to
Ho Chi Minh City, Vietnam, in August and Delhi in October.  It
will boost flights to about 180 a week from 150 by the end of
March 2011.

JAL Express Co., writes Mr. Cooper, will operate about 70
flights a week to other Asian countries by the end of March
2011.  

JAL Express Co. currently flies within Japan only.  All in all,
overseas flights by the two subsidiaries will increase to about
250 a week from 150, relates Mr. Cooper.

                      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.

                        *     *     *

The Troubled Company Reporter - Asia Pacific reported on
Feb. 9, 2007, that 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 is negative.

The TCR-AP 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.  The rating outlook is stable.

Fitch Ratings Tokyo analyst Satoru Aoyama said that the ompany'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.


METSO CORP: Division to Provide Power Boiler to Scotland's UPM
--------------------------------------------------------------
Metso Power, a part of Metso Corp.'s Metso Paper business area,
will supply UPM's Caledonian paper mill with a biomass-fired
power boiler to the mill's new power plant in Irvine, Scotland.
Start-up for the plant is scheduled for the first half of 2009.
The value of the order is approximately EUR40 million.  The
order is included in Metso's second quarter order backlog.

The power boiler will utilize bubbling fluidized bed technology.
The delivery will also include a dry flue gas cleaning system,
which improves mill's environmental performance.  The boiler
will burn CO2 (carbon dioxide) neutral biomass utilizing a
combination of wood fuel and site-derived residues as its
primary fuel.

With this new power plant UPM will continue to reduce carbon
emissions by 75,000 tons annually.  The company has reduced its
production related fossil CO2 emissions by 25 percent during the
last ten years by investing in biomass-based energy generation
and in energy efficiency.  The new power plant at the Caledonian
mill will also significantly assist Scotland in achieving its
2010 national renewables generation target of 18 percent.

UPM's sales in 2006 were EUR10 billion, and it has about 28,000
employees.  UPM's main products include printing papers, self-
adhesive label materials and wood products.  The production
capacity of the Caledonian mill is 280,000 tons of LWC magazine
paper and it employs 360 people.

                         About Metso

Headquartered in Helsinki, Finland, Metso Corp. aka Metso Oyj --
http://www.metso.com/-- is a global engineering and technology   
corporation with 2005 net sales of around EUR4.2 billion.  Its
22,000 employees in more than 50 countries serve customers in
the pulp and paper industry, rock and minerals processing, the
energy industry and selected other industries.

The company's principal production plants are located in Brazil,
China, Finland, France, Germany, India, Italy, South Africa,
Sweden, the United Kingdom, and the United States.

                        *    *    *

As of Feb. 9, 2007, Metso Oyj carries Standard & Poor's 'BB+'
long-term and 'B' short-term corporate credit ratings and 'BB'
senior unsecured debt rating.


METSO CORP: Subsidiary Expands Production Capacity at Lapua
-----------------------------------------------------------
Metso Power, which is part of Metso Corp.'s Metso Paper business
area, is increasing its production capacity at the Lapua factory
in Finland.  

The goal is to be able to better meet the growing demand for
power plants fueled by renewable energy sources as well as the
needs for modernization and maintenance services at pulp and
paper mills.

The expansion will increase the production facilities by about
one third and will be ready for use at the beginning of 2008.  
In the same conjunction, Metso Power is buying the entire
production hall, which is currently leased, to ensure flexible
development of the premises also in the future.  The total value
of the investments is nearly EUR8 million.

The current Lapua factory was built in 1990 and the first
expansion was completed in 1993.

Metso Power has four production units serving business globally.
Metso Power manufactures the key components for its main
products, which are fluidized bed boilers and recovery boilers,
oil and gas boilers and evaporators.  The production of new
boilers is centralized to the Tampere factory in Finland.  The
Lapua factory and two factories located in Sweden specialize in
manufacturing and installing parts needed for boiler rebuilds
and maintenance.

                         About Metso

Headquartered in Helsinki, Finland, Metso Corp. aka Metso Oyj --
http://www.metso.com/-- is a global engineering and technology  
corporation with 2005 net sales of around EUR4.2 billion.  Its
22,000 employees in more than 50 countries serve customers in
the pulp and paper industry, rock and minerals processing, the
energy industry and selected other industries.

The company's principal production plants are located in Brazil,
China, Finland, France, Germany, India, Italy, South Africa,
Sweden, the United Kingdom, and the United States.

                        *     *     *

As of Feb. 9, 2007, Metso Oyj carries Standard & Poor's 'BB+'
long-term and 'B' short-term corporate credit ratings and 'BB'
senior unsecured debt rating.


METSO CORP: Unit to Supply Materials Handling to Brazilian Firm
---------------------------------------------------------------
Metso Minerals, one Metso Corp.'s three business areas, will
supply a bulk materials handling solution to CBA (Companhia
Brasileira de Aluminio).  The delivery will be completed within
the first quarter of 2009.  The value of the order is
approximately EUR12 million.

The order is included in Metso's second quarter order backlog.  
The order comprises two bridge reclaimers, one stacker and six
belt conveyors.  Additionally, the order includes electrical
services, engineering, erection supervision, operator training,
and start-up and commissioning services.

Metso's solution is for the expansion of the bauxite yard
located in Aluminio, State of Sao Paulo.  With the expansion,
CBA targets to increase its production from some 400,000 to
475,000 tons of aluminum per year.

CBA is a part of the Votorantim Group, which is one of the
largest private industrial conglomerates in Latin America.  It
operates in the areas of hydroelectric power stations, cement
factories, steel industries, aluminum refineries, and pulp and
paper.  CBA employs some 6,500 people.

                         About Metso

Headquartered in Helsinki, Finland, Metso Corp. aka Metso Oyj --
http://www.metso.com/-- is a global engineering and technology   
corporation with 2005 net sales of around EUR4.2 billion.  Its
22,000 employees in more than 50 countries serve customers in
the pulp and paper industry, rock and minerals processing, the
energy industry and selected other industries.

The company's principal production plants are located in Brazil,
China, Finland, France, Germany, India, Italy, South Africa,
Sweden, the United Kingdom, and the United States.

                        *     *     *

As of Feb. 9, 2007, Metso Oyj carries Standard & Poor's 'BB+'
long-term and 'B' short-term corporate credit ratings and 'BB'
senior unsecured debt rating.


NORTEL NETWORKS: Wins Contract from Taiwan's Cathay United
----------------------------------------------------------
Cathay United Bank, one of Taiwan's largest commercial banks, is
enhancing its business operations with the deployment of Nortel
Network Corporation's converged IP communications solutions
across its branch locations.  The new Cathay United Bank network
integrates voice and data into a simplified IP network, saving
time and costs on managing communications needs.  Nortel
collaborated with Interstate Communication on the project.

As part of its communications infrastructure upgrade, Cathay
United Bank has migrated to an integrated IP network to more
cost-effectively drive its internal communications and enhance
operational efficiency.  The new network helps Cathay United
Bank meet objectives for increasing productivity through
simplified and centralized communications management while
lowering costs by reducing equipment purchases and leasing fees.

"Many companies have hesitated to convert to a converged IP
communications network because of concerns about voice quality,
cost and lack of internal technical skills to manage the
transition," said Y.K. Tsai, regional Taiwan leader, Nortel.
"Nortel used sophisticated yet easy-to-use technology to
integrate Cathay United Banks' separate voice and data networks
to deliver consistent quality of service."

Cathay United Bank's new IP network utilizes Nortel's
Communication Server 1000.  Nortel Communication Server 1000 is
a full-featured IP PBX, providing the benefits of a converged
network plus advanced applications and over 750 advanced
telephony features.  The server is fully distributed over IP,
LAN and WAN infrastructure, and supports business-critical
applications, including unified messaging, customer contact
centers, Interactive Voice Response, wireless VoIP and IP
phones.

Nortel is also providing Network Managed Services from the
Nortel Global Services portfolio, which offers a full range of
network application, implementation, management and support
services for end-to-end, multi-vendor, multi-technology
networks.

Nortel is a recognized global market leader in converged IP
solutions for enterprises and has deployed IP telephony for
thousands of customers around the world.  Nortel combines
extensive expertise in IP with a broad portfolio of voice and
data solutions to provide pre-configured IP migration packages
tailored to specific customer business needs.

                          About Nortel

Headquartered in Ontario, Canada, Nortel Networks Corporation  
(NYSE/TSX: NT) -- http://www.nortel.com/-- delivers technology     
solutions encompassing end-to-end broadband, Voice over IP,  
multimedia services and applications, and wireless broadband  
designed to help people solve the world's greatest challenges.  
Nortel Networks Limited is the principal direct operating  
subsidiary of Nortel Networks Corporation.

Nortel does business in more than 150 countries including  
Indonesia, the United Kingdom, Denmark, Russia, Norway,  
Australia, Brazil, China, Mexico, Singapore, among others.

                        *     *     *

Dominion Bond Rating Service confirmed the long-term ratings of
Nortel Networks Capital Corporation, Nortel Networks
Corporation, and Nortel Networks Limited at B (low) along with
the preferred share ratings of Nortel Networks Limited at Pfd-5
(low).  All trends are Stable.

DBRS confirmed B (low) Stb Senior Unsecured Notes; B (low) Stb
Convertible Notes; B (low) Stb Notes & Long-Term Senior Debt;
Pfd-5 (low) Stb Class A, Redeemable Preferred Shares; and Pfd-5
(low) Stb Class A, Non-Cumulative Redeemable Preferred Shares.

Additionally, Moody's Investors Service affirmed the B3
corporate family rating of Nortel; assigned a B3 rating to the
proposed US$2billion senior note issue; downgraded the US$200
million 6.875% Senior Notes due 2023 and revised the outlook to
stable from negative.

Standard & Poor's also affirmed its 'B-' long-term and 'B-2'
short-term corporate credit ratings on the company, and assigned
its 'B-' senior unsecured debt rating to the company's proposed
US$2 billion notes.  The outlook was stable.


PETROLEO BRASILEIRO: Resumes Oil Production in P-50 Platform
------------------------------------------------------------
Brazilian state-owned oil firm Petroleo Brasileiro SA said in a
statement that it has resumed oil production in the P-50
platform after a fire broke out in the unit on July 4.

Petroleo Brasileiro told Business News Americas that P-50 is
producing about 160,000 barrels per day, the same level before
the fire.  The unit's installed capacity is 180,000 barrels per
day.

Petroleo Brasileiro said it has cleaned the transformers room.  
It has also made a complete checkup of other systems in P-50,
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: Workers Want Unit To Extend Union Benefits
---------------------------------------------------------------
Brazilian state-run oil firm Petroleo Brasileiro SA's unionized
workers are asking transportation unit Transpetro to extend
union benefits to its unionized workers, Business News Americas
reports.

The oil workers' federation FUP head Jose Maria Rangel told
BNamericas, "Last week we sent a document to Transpetro asking
for the same benefits that were granted to Petrobras' [Petroleo
Brasileiro] workers."

According to BNamericas, FUP represents employees at Petroleo
Brasileiro and Transpetro.

Mr. Rangel commented to BNamericas, "We had to do it [ask for
Transpetro benefits] because Transpetro is a separate company
from Petrobras, with separate salaries and promotion policies."

Petroleo Brasileiro said labor deals for the federal oil firm
would be offered to employees at its units, BNamericas states,
citing Mr. Rangel.

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

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

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

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

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




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


ABACUS FUND: Proofs of Claim Filing Ends on July 27
---------------------------------------------------
Abacus Fund Ltd.'s creditors are given until July 27, 2007, to
prove their claims to John Cullinane and Derrie Boggess, 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.

Abacus Fund's shareholders agreed on June 22, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidators can be reached at:

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


AMMC CDO: Proofs of Claim Must be Filed by July 26
--------------------------------------------------
AMMC CDO II Ltd.'s creditors are given until July 26, 2007, to
prove their claims to Mora Goddard and Joshua Grant, 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.

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

The liquidators can be reached at:

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


ANTHRACITE BALANCED: Proofs of Claim Filing Ends on July 25
-----------------------------------------------------------
Anthracite Balanced Company (Libgdf4) Ltd.'s creditors are given
until July 25, 2007, to prove their claims to Scott Aitken and
Connan Hill, 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.

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

The liquidators can be reached at:

        Scott Aitken
        Connan Hill
        P.O. Box 1109
        George Town, Grand Cayman
        Cayman Islands
        Tel: (345) 949-7755
        Fax: (345) 949-7634


ANTHRACITE BALANCED: Sets Final Shareholders Meeting for July 25
----------------------------------------------------------------
Anthracite Balanced Company (Libgdf4) Ltd. will hold its final
shareholders meeting on July 25, 2007, at 10:00 a.m., at:
         
        P.O. Box 1109
        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 liquidators can be reached at:

        Scott Aitken
        Connan Hill
        P.O. Box 1109
        George Town, Grand Cayman
        Cayman Islands
        Tel: (345) 949-7755
        Fax: (345) 949-7634


AS ASSIST: Proofs of Claim Filing Deadline Is July 21
-----------------------------------------------------
AS Assist Holdings Inc.'s creditors are given until
July 21, 2007, to prove their claims to John Cullinane and
Derrie Boggess, 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.

AS Assist's shareholders agreed on June 21, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidators can be reached at:

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


BAILEY COATES: Proofs of Claim Filing Ends on July 27
-----------------------------------------------------
Bailey Coates (Cayman) Ltd. creditors are given until
July 27, 2007, to prove their claims to Gordon I. MacRae and
Naul C. Bodden, 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.

Bailey Coates shareholders agreed on June 6, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidator can be reached at:

        Gordon I. Macrae
        Attention: Korie Drummond
        Kroll (Cayman) Limited
        4th Floor Bermuda House
        Dr. Roy's Drive
        Grand Cayman KY1 - 1102
        Cayman Islands
        Tel: +1 (345) 946-0081
        Fax: +1 (345) 946-0082


BT BRAM: Proofs of Claim Filing Deadline Is July 27
---------------------------------------------------
BT Bram Ltd.'s creditors are given until July 27, 2007, to prove
their claims to Jeremy Simon Spratt and Finbarr Thomas
O'Connell, 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.

BT Bram's shareholders agreed on May 22, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidators can be reached at:

        Jeremy Simon Spratt
        Finbarr Thomas O'Connell
        Attention: Ray Levy
        8 Salisbury Square, London EC4Y 8B
        United Kingdom
        Tel: 01144 207 694 3201
        Fax: 01144 207 694 3533


BT INVESTMENTS: Proofs of Claim Filing Is Until July 27
-------------------------------------------------------
BT Investments (Cayman) No.1 Ltd.'s creditors are given until
July 27, 2007, to prove their claims to Jeremy Simon Spratt and
Finbarr Thomas O'Connell, 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.

BT Investments shareholders agreed on May 21, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidators can be reached at:

        Jeremy Simon Spratt
        Finbarr Thomas O'Connell
        Attention: Ray Levy
        8 Salisbury Square, London EC4Y 8B
        United Kingdom
        Tel: 01144 207 694 3201
        Fax: 01144 207 694 3533


BT YOSEMITE: Proofs of Claim Must be Filed by July 27
-----------------------------------------------------
BT Yosemite creditors are given until July 27, 2007, to prove
their claims to Jeremy Simon Spratt and Finbarr Thomas
O'Connell, 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.

BT Yosemite's shareholders agreed on May 21, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidators can be reached at:

        Jeremy Simon Spratt
        Finbarr Thomas O'Connell
        Attention: Ray Levy
        8 Salisbury Square, London EC4Y 8B
        United Kingdom
        Tel: 01144 207 694 3201
        Fax: 01144 207 694 3533


DEUTSCHE AOTEAROA: Proofs of Claim Filing Deadline Is July 27
-------------------------------------------------------------
Deutsche Aotearoa Ltd. creditors are given until July 27, 2007,
to prove their claims to Jeremy Simon Spratt and Finbarr Thomas
O'Connell, 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.

Deutsche Aotearoa's shareholders agreed on May 21, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

        Jeremy Simon Spratt
        Finbarr Thomas O'Connell
        Attention: Ray Levy
        8 Salisbury Square, London EC4Y 8B
        United Kingdom
        Tel: 01144 207 694 3201
        Fax: 01144 207 694 3533


CELLON INT'L: Proofs of Claim Must be Filed by July 16
------------------------------------------------------
Cellon International Holding Corp.'s creditors are given until
July 16, 2007, to prove their claims to Cosimo Borrelli and
Jacqueline Walsh, 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.

Cellon International's shareholders agreed on June 18, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

        Walkers
        Attention: Matthew Goucke
        Email: matthew.goucke@walkersglobal.com
        c/o Walkers, Walker House
        87 Mary Street, George Town
        Grand Cayman KY1-9001
        Cayman Islands
        Tel: 345 914 6332
        Fax: 345 814 8332


HEXA PROPERTIES: Proofs of Claim Filing Ends on July 21
-------------------------------------------------------
Hexa Properties Cayman Inc.'s creditors are given until
July 21, 2007, to prove their claims to John Cullinane and
Derrie Boggess, 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.

Hexa Properties shareholders agreed on June 21, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

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


IVY ENHANCED: Proofs of Claim Must be Filed by July 29
------------------------------------------------------
Ivy Enhanced Alpha Feeder Fund Ltd.'s creditors are given until
July 29, 2007, to prove their claims to John Cullinane and
Derrie Boggess, 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.

Ivy Enhanced shareholders agreed on June 29, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidators can be reached at:

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


JAPAN OFFICE: Proofs of Claim Filing Deadline Is July 29
--------------------------------------------------------
Japan Office Capital 3 Ltd.'s creditors are given until
July 29, 2007, to prove their claims to John Cullinane and
Derrie Boggess, 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.

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

The liquidators can be reached at:

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


MANLEY INVESTMENT: Proofs of Claim Filing Ends on July 22
---------------------------------------------------------
Manley Investment Partners Offshore Fund Ltd.'s creditors are
given until July 22, 2007, to prove their claims to John
Cullinane and Derrie Boggess, 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.

Manley Investment's shareholders agreed on June 22, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

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


MARBLE LIMITED: Proofs of Claim Must be Filed by July 30
--------------------------------------------------------
Marble Ltd.'s creditors are given until July 30, 2007, to prove
their claims to Cane Pickersgill, 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.

Marble Ltd.'s shareholders agreed on June 22, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidator can be reached at:

        Cane Pickersgill
        35 Great St Helen's
        London EC3A 6AP
        Tel: +44 (0) 207 398 6300
        Fax: +44 (0) 207 398 6325


MARBLE LIMITED: Sets Final Shareholders Meeting for Aug. 6
----------------------------------------------------------
Marble Ltd. will hold its final shareholders meeting on
Aug. 6, 2007, at 4:00 p.m., at:

          35 Great St Helen's
          London EC3A 6AP

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:

          Cane Pickersgill
          35 Great St Helen's
          London EC3A 6AP
          Tel: +44 (0) 207 398 6300
          Fax: +44 (0) 207 398 6325


QUARTZ LIMITED: Proofs of Claim Filing Ends on July 30
------------------------------------------------------
Quartz Ltd.'s creditors are given until July 30, 2007, to prove
their claims to Cane Pickersgill, 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.

Quartz Ltd.'s shareholders agreed on June 22, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidator can be reached at:

        Cane Pickersgill
        35 Great St Helen's
        London EC3A 6AP
        Tel: +44 (0) 207 398 6300
        Fax: +44 (0) 207 398 6325


QUARTZ LIMITED: Sets Final Shareholders Meeting for Aug. 6
----------------------------------------------------------
Quartz Ltd. will hold its final shareholders meeting on
Aug. 6, 2007, at 3:30 p.m., at:

          35 Great St Helen's
          London EC3A 6AP

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:

          Cane Pickersgill
          35 Great St Helen's
          London EC3A 6AP
          Tel: +44 (0) 207 398 6300
          Fax: +44 (0) 207 398 6325


ZESTY CO: Proofs of Claim Must be Filed by July 25
--------------------------------------------------
Zesty Co. Ltd.'s creditors are given until July 25, 2007, to
prove their claims to John Cullinane and Derrie Boggess, 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.

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

The liquidators can be reached at:

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




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


BELVEDERE SA: S&P Places Long-Term Corporate Credit Rating at B
---------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'B' long-term
corporate credit rating on France-based spirits and wine
producer and supplier Belvedere S.A. on CreditWatch with
developing implications.  The rating action follows company
management's announcement to exercise the option to acquire the
interest in Belvedere held by Trinidad & Tobago based
controlling shareholder CL Financial for a sum of EUR345
million, and to place it among institutional investors, as well
as its stated aim to de-leverage the group's balance sheet
through a series of asset divestments to be executed by year-end
2007.  The most important of these divestments will be the sale
of Marie Brizard's nonalcoholic beverages for an after-tax
amount of EUR115 million.
     
"The successful closing of the announced transactions may result
in an improved financial risk profile for the company, which
could have a positive impact on the ratings," said Standard &
Poor's credit analyst Michael Seewald.  "Conversely, the failure
of Belvedere's management to replace CL Financial as a
shareholder, or the entry of a third party as new controlling
entity, could result in the departure of the current management
or trigger a more aggressive financial policy, and therefore
lead to downward pressure on the ratings."  These pressures
could impact the rating within the short term.
     
S&P also expects that the proceeds from the announced asset
divestments may not immediately be used to pay back debt and
that despite an improved net debt position at fiscal year-end
2007, Belvedere's total debt figure would not be materially
different from today's levels.
     
The corporate credit rating on Belvedere reflects its highly
leveraged financial profile following the acquisition of France-
based wine and spirits producer and supplier Marie Brizard &
Roger International.  It also reflects the combined group's
exposure to the highly competitive, mature, and consolidating
French and Polish spirit and wine industries; and its
positioning in the low and medium market segments, accounting
for high exposure to retailer bargaining power.  These negative
rating factors are partially mitigated by the increased
diversification in terms of product mix and geography, following
the acquisition and ownership of some brands with leading market
shares in the Polish and French core markets.  At the end of the
first quarter of fiscal 2007, Belvedere's total adjusted
financial indebtedness amounted to EUR531 million, not taking
into account a cash position of EUR70 million.
     
Belvedere's operations are in line with our expectations.  The
company reported ongoing sales trends in the first quarter of
2007 through a price-driven 7.7% sales increase in the Polish
vodka market after currency effects. EBITDA margins in the same
period were about 10.5% after 9.5% in the previous year.  
Belvedere's pro forma total adjusted debt to EBITDA was in a
range of 8.0x-8.5x, which is still in line with our short-term
expectations.  However, S&P also notes that the post-MB-
acquisition de-leveraging is slower than expected due to the
ongoing series of incremental acquisitions in Poland and the
U.S.
     
Standard & Poor's will continue to monitor developments at
Belvedere and seek to resolve the CreditWatch placement as soon
as there is more transparency with regards to the outcome of the
pending transactions.

Headquartered in Beaune, France, Belvedere S.A. --
http://www.belvedere.fr/-- is a French company with four areas   
of activity: designing luxury bottles for clear spirits, notably
vodka; distributing wines, notably Bulgarian; marketing spirits,
and producing vodka.  The Company carries out the majority of
its activity in Poland through its subsidiary, Sobieski Spolka
(formerly Belvedere Dystrybucja).  It also has a presence in a
number of other Eastern European countries, as well as France,
Greece, Switzerland, the United States, Brazil, Mexico, Chile,
China and Japan.  Alongside other brands, Belvedere SA produces,
markets and distributes its own brand of vodka, Sobieski.




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


ECOPETROL: Will Participate in Central American Oil Plant Tender
----------------------------------------------------------------
Colombian state-owned oil company Ecopetrol has expressed
interest in participating in a tender process for the
construction of an oil refinery in Central America under a
regional integration plan, the Mexican Energy Ministry said in a
statement.

Dow Jones Newswires relates that the plan for a Central American
refinery was initiated under the administration of former
Mexican President Vicente Fox.  It would be the largest of the
energy projects included in the regional integration scheme.

The ministry told Dow Jones that Mexican state-run oil firm
Petroleos Mexicanos will supply about 80,000 barrels per day of
heavy crude oil for the plant for eight years.

Potential investors are given 12 months to draft studies to
decide the location of the plant as well as the amount of
investment required.  Final bids must be submitted by
June 16, 2008, Dow Jones notes, citing the ministry.

The ministry told Dow Jones that these countries are among those
keen on hosting the plant:

          -- Costa Rica,
          -- Guatemala,
          -- Honduras, and
          -- Panama.

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

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 27, 2007, Fitch Ratings upgraded the foreign currency
Issuer Default Ratings of Ecopetrol to 'BB+' from 'BB'.  The
rating action followed the upgrade of The Republic of Colombia's
foreign currency Issuer Default Ratings to 'BB+' from 'BB'.  


GENERAL NUTRITION: Parent Opens 1000TH Franchise Store in Sofia
---------------------------------------------------------------
General Nutrition's parent company GNC opened its 1,000th
international franchise store in Sofia, Bulgaria -- marking yet
another milestone for the company's international franchising
division this year.

In February, Entrepreneur magazine named GNC Franchising, Inc.
the world's #1 franchise in the vitamins category for the 18th
year in a row, and ranked the company #32 overall in its elite
list of first-rate franchising opportunities.

The 1,000th international store will be operated by Bissera
Pramatarova, M.D., and Atanas Iantchev, M.D., of United Medical
Communications, Ltd., which franchises the rights to GNC's
development in Bulgaria.  United Medical Communications, Ltd. is
an exclusive distributor of Flora Health of Canada in that
country, where it is pursuing various other opportunities in the
healthcare industry.

For GNC, the new store opening signifies great potential for
continued growth and dissemination of its retail concept across
the European Union, which Bulgaria joined in January.  Reg
Steele, senior vice president of GNC's international franchising
division, said he's certain that more members of the EU will
come to accept and embrace the GNC brand, as it stands for
quality and good self-healthcare across all the international
markets it has developed over the years.

"Our continued focus on global expansion, coupled with
increasing worldwide demand for our products, has led to great
success in the industry and around the world," he said.  "We
look forward to the opportunities this partnership will surely
bring."

                 About General Nutrition

Pittsburgh, Pennsylvania-based General Nutrition is a subsidiary
of GNC Corp. -- http://www.gnc.com/-- a specialty retailer of   
health and wellness products, including vitamins, minerals,
herbal, and specialty supplements (VMHS), sports nutrition
products and diet products.  The company sells its products
through a worldwide network of more than 5,800 locations
operating under the GNC brand name and operates in three
business segments: retail, franchise and manufacturing/
wholesale.

GNC has franchise operations in 46 international markets
including Turkey, Ukraine, Australia, Colombia, Singapore,
Indonesia, Philippines, among others.

                        *     *     *

As reported in the Troubled Company Reporter on March 5, 2007,
Moody's Investors Service affirmed the Ba1 corporate family and
long-term debt ratings of Avnet, Inc., and revised the outlook
to positive from stable.


GRAN TIERRA: Concludes Six Drill Stem Tests on Costayaco-1
----------------------------------------------------------
Gran Tierra Energy said in a statement that it, along with
Solana Resources, has completed six drill stem tests or DST on
the Costayaco-1 wildcat well in Chaza block.

Gran Tierra and Solana Resources told Business News Americas
that the tests began on June 10.  Production at a combined flow
rate of up to 5,906 barrels per day of up to 31 degrees "API oil
was obtained in six formations."

BNamericas relates that these tests were taken:

          -- DST-1 tested the Lower Caballos formation and
             flowed naturally, hitting a maximum of 206 barrels
             per day a trace of water;

          -- DST-2 tested the Lower and Middle Caballos
             formations and flowed naturally, reaching a maximum
             rate of 2,655 barrels per day with a trace of
             water;

          -- DST-3 tested the Lower Villeta T formation and
             flowed naturally, attaining a maximum rate of
             1,342 barrels per day with a trace of water;

          -- DST-4 tested the Lower and Upper Villeta formations
             and flowed naturally, reaching a maximum flow of
             2,212 barrels per day with a trace of water;

          -- DST-5 tested the Villeta U formation and didn't
             flow naturally.  Using a jet pump, the formation
             produced at 420 barrels per day with a low pump
             rate and 1% water cut; and

          -- DST-6 tested the Rumiyaco formation and flowed
             naturally, reaching a maximum rate of 619 barrels
             per day with a trace of water.

Solana Resources Chief Executive Officer Scott Price told
BNamericas that Costayaco-1 is close to infrastructure.  Gran
Tierra will begin production immediately by trucking the oil
while planning a long-term pipeline.

Mr. Price commented to BNamericas, "Both Gran Tierra and Solana
were happily surprised by the production of this well.  Our
original anticipation was to do a trucking scenario to local
facilities, but obviously now with the potential of the well we
are looking at a flow line scenario.  Its still too early to
decide what exactly we are going to do."

According to BNamericas, Gran Tierra and Solana Resources will
start trucking as soon as possible.

"There is an issue on the number of vehicles available, and
loading and unloading is not as efficient as a flow line.  The
capability of the well will far outstrip the capability of the
trucks," Mr. Price told BNamericas.

Gran Tierra said in a statement that the Pride-17 drilling rig
was used to drill Costayaco-1.  It would be available for
additional drilling in October 2007.  The firm will drill two
new wells on step outs from the Costayaco-1 well.

Mr. Price told BNamericas that Gran Tierra and Solana Resources
are waiting for Colombian state-run oil company Ecopetrol to
authorize commerciality at its Juanambu-1 well in the Guayuyaco
block that tested at a combined production rate of 778 barrels
per day of crude.

"We're waiting on a declaration of commerciality from Ecopetrol
before we can start trucking oil from Juanambu-1.  It's an old
association contract so Ecopetrol is in the mix unlike the
Costayaco-1 where the state is not involved.  We are a bit
disappointed that we have capacity ready to go that is just
sitting there. Ecopetrol gets a percentage of production so the
motivation should be aligned to get it on as soon as possible,"
Mr. Price commented to BNamericas.

Gran Tierra Energy Inc. (OTCBB: GTRE.OB) --
http://www.grantierra.com/-- is an international oil and gas   
exploration and development company headquartered in Calgary,
Canada, incorporated and traded in the United States and
operating in South America.  The company currently holds
interests in producing and prospective properties in Argentina,
Colombia and Peru.

                        *     *     *

Management disclosed that the company's ability to continue as a
going concern is dependent upon obtaining the necessary
financing to acquire oil and natural gas interests and
generating profitable operations from its oil and natural gas
interests in the future.  The company incurred a net loss of
US$1.9 million for the nine-month period ended Sept. 30, 2006,
and, as of Sept. 30, 2006, had an accumulated deficit of
US$4.1 million.


* COLOMBIA: Launches First Biodiesel Plant in Codazzi
-----------------------------------------------------
Colombia's President Alvaro Uribe has launched the first of the
four biodiesel plants in the Codazzi municipality in the Cesar
department, government news agency SNE reports.

According to SNE, the plants will start operating by year-end.

SNE says that the plant is owned by agribusiness group
Oleoflores.  It will produce almost 190,000 liters per day of
biodiesel from 20,000 hectares of African palm.

Business News Americas relates that biodiesel production in
Colombia is being driven by a government incentive program,
which removes taxes on the green fuel, and new regulations that
stipulate a 5% biodiesel admixture.

SNE says that Colombian diesel will be blended with 10%
biodiesel starting in 2010.  That rate will expand to 20% in
2012.  Colombia will have 330,000 hectares of African palm in
production by year-end.  It currently has 44 million hectares of
farmland that could be used for biofuel production.

The Colombian government wants to have over three million
hectares of African palm in cultivation within the next 10
years, SNE states.

As reported in the Troubled Company Reporter-Latin America on
June 15, 2007, Standard & Poor's Ratings Services assigned its
'BB+' long-term senior unsecured rating to the Republic of
Colombia's proposed 2027 Global Titulos de Tesoreria bond, a
bond denominated in Colombian pesos but payable in US dollars.




===================
C O S T A   R I C A
===================


ALCATEL-LUCENT: Bags Contract from Hanaro Telecom
-------------------------------------------------
Alcatel-Lucent has signed a contract with Hanaro Telecom, a
major broadband service provider in Korea, to support its
network expansion.  Alcatel-Lucent will supply its optical
networking solution to increase Hanaro Telecom's network
capacity.  This will enable Hanaro Telecom to accommodate its
significant subscriber growth and the increased bandwidth
requirements driven by the "hanaTV" video-on-demand and
"hanafos" high-speed data services.  The project is scheduled
for completion in the third quarter 2007.

"With the deployment of Alcatel-Lucent's advanced optical
network, we address our growing broadband traffic demands with
enhanced efficiency and cost-effectiveness," said Seung-Seog
Lee, Chief Technology Officer at Hanaro Telecom "Upon
completion, this project will allow us to deliver the most
advanced services with the highest quality and reliability and
to be prepared for deploying interactive IPTV service in the
near future."

"This contract further sustains the traction of our optical
networking solutions in the Asia-Pacific region, where we have
experienced significant growth over the past quarters," said
Frederic Rose, President of Alcatel-Lucent activities in Asia-
Pacific.  "This achievement also confirms our commitment to
assist our customers in their move to next-generation optical
networks."

Alcatel-Lucent's solution is based on its 1626 Light Manager, a
multi-reach DWDM platform operating up to 40 Gbit/s, and 1353
Network Manager, which enables easy and fast service
provisioning and network management.  Its rollout will further
raise Hanaro Telecom's network efficiency, ultimately reducing
its operational costs.  This new deployment fits with Hanaro
Telecom's plans to increase the flexibility and intelligence of
its optical infrastructure, having already deployed Alcatel-
Lucent's 1678 Metro Core Connect and data-aware Optical Multi-
Service Node systems.

Alcatel-Lucent leads the Asia-Pacific multi-reach dense
wavelength division-multiplexing segment with a 33% market share
in the first quarter of 2007 according to Ovum-RHK.   This new
contract further strengthens the Alcatel-Lucent 1626 Light
Manager's customer base which includes China Telecom, Spark
(Taiwan), Triple T Broadband, DANTE, in the framework of the
pan-European GEANT2 project, and RENATER in the research and
education field; Kazahktelecom, Telemar, P&T Luxembourg with an
ROADM-enabled solution.

                      About Alcatel-Lucent

Headquartered in Paris, France, Alcatel-Lucent --
http://www.alcatel-lucent.com/-- provides solutions that enable    
service providers, enterprises and governments worldwide to
deliver voice, data and video communication services to end
users.  Alcatel-Lucent maintains operations in 130 countries,
including, Austria, Germany, Hungary, Italy, Netherlands,
Ireland, Canada, United States, Costa Rica, Dominican Republic,
El Salvador, Guatemala, Peru, Venezuela, Indonesia, Australia,
Brunei and Cambodia.  On Nov. 30, 2006, Alcatel and Lucent
Technologies Inc. completed their merger transaction, and began
operations as a communication solutions provider under the name
Alcatel-Lucent on Dec. 1, 2006.

                        *     *     *

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

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

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


SAMSONITE CORP: CVC Merger Deal Cues Moody's To Review Ratings
--------------------------------------------------------------
Moody's Investors Service placed all ratings of Samsonite
Corporation under review for possible downgrade.

The review was prompted by the company's announcement that it
has entered into a definitive merger agreement with funds
managed and advised by CVC Capital Partners in an all-cash
transaction valued at about US$1.7 billion, including the
assumption of debt (US$482 million outstanding as of April 30,
2007).  The transaction remains subject to regulatory approval
in both the U.S. and Europe, and is expected to close in the
fourth quarter of 2007. LGD assessments are also subject to
change.

Moody's review will consider the impact of the transaction on
Samsonite's capital structure and credit metrics, particularly
since post-transaction debt levels could potentially increase.
The review will also focus on management's ongoing strategy for
growth, profitability improvement, and cash flow generation.
Since Samsonite's operating performance and credit metrics have
shown significant improvement over the last several years,
Moody's will assess whether the company will be able to sustain
metrics that are consistent with a B1 rating going forward given
changes which may occur to its capital structure.

Ratings placed under review for possible downgrade are:

* Samsonite Corporation

   -- US$80 million senior secured revolving credit facility at
      Ba3;

   -- US$450 million senior secured term loan at Ba3;

   -- Corporate Family Rating at B1; and

   -- Probability of Default rating at B2.

Samsonite is a leading manufacturer, marketer and distributor of
luggage and travel-related products.  The company's owned and
licensed brands, which include Samsonite, American Tourister,
Sammies, Lacoste and Timberland, are sold globally through
external retailers and 284 company-owned stores.  Net sales for
the 12-month period ended April 30, 2007 approached US$1.1
billion.  Executive offices are located in London, England.

The company has global locations in Aruba, Australia, Costa
Rica, Indonesia, India, Japan, and the United States among
others.


* COSTA RICA: State Firm Investing US$15 Million for Equipment
--------------------------------------------------------------
Costa Rican state-run fixed line monopoly Instituto
Costarricense de Electricidad would have to invest about US$15
million for equipment and upgrades needed "to add an extra digit
to telephone numbers," news daily La Nacion reports.

Business News Americas relates that the additional digit will
bring fixed and mobile numbers to eight digits.  This will be
implemented on March 20, 2008.

ICE's assistant telecoms manager Claudio Bermudez told
BNamericas tat the cost for the company is likely to be more, as
the US$15-million estimate doesn't include marketing or
additional wages involved in implementing changes in its
switching centers.

According to La Nacion, ICE expects to gain "100 million
combinations as a result of introducing the extra digit."  The
company is positive that the measure should satisfy demand for
fixed and mobile numbers for the next 30 years.  

La Nacion notes that ICE switched to seven digits in 1994,
saying that would be sufficient for 40 years.

The new numbers don't necessarily mean ICE's network has enough
capacity to make an equivalent number of lines available.  The
firm expects to activate 20 million of the new numbers in 2008
-- 10 million fixed and 10 million mobile, BNamericas states.

                        *     *     *

As reported on Aug. 21, 2006, Fitch Ratings upgraded Costa
Rica's country ceiling to BB+ from BB.




=======
C U B A
=======


* CUBA: Installs Over 6,000 Windmills
-------------------------------------
The Cuban News Agency ACN reports that the Cuban government has
deployed over 6,000 windmills as part of its efforts to develop
the use of renewable sources of energy and the energy-saving
program, which was launched in 2005.

The Cuban News Agency notes that the Agriculture Ministry's
several facilities related to cattle raising will benefit from
the mills.

The first windmills arrived in Cuba early in the 20th century.  
At first they were used in Camaguey, the Technical University of
Renewable Energy's director Conrado Moreno told the Cuban News
Agency.  He said that Camaguey witnessed the construction of the
first Cuban-made windmills.  The windmills are currently made in
Pinar del Rio and Granma.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Dec. 18, 2006, Moody's Investors Service said that Cuba's Caa1
foreign-currency issuer rating reflects the debt moratorium that
has been in place for more than 15 years, leading to the
accumulation of principal and interest arrears.

Moody's assigned these ratings on Cuba:

      -- CC LT Foreign Bank Deposit, Caa2
      -- CC LT Foreign Currency Debt, Caa1
      -- CC ST Foreign Bank Deposit, NP
      -- CC ST Foreign Currency Debt, NP
      -- Issuer Rating, Caa1




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


SERVICEMASTER: Fitch Downgrades Issuer Default Rating to B
----------------------------------------------------------
Fitch Ratings has removed The ServiceMaster Company's ratings
from Rating Watch Negative and has downgraded the Issuer Default
Rating and senior unsecured rating to 'B' from 'BB-'.  At the
same time, Fitch withdraws the following ratings:

  -- Issuer Default Rating 'B';
  -- Unsecured bank facility 'BB-';
  -- Senior unsecured 'B'.

Fitch had indicated in its press release dated March 19, 2007
that pro forma credit metrics were reflective of a 'B' or 'B-'
IDR.  Also, Fitch notes that under the proposed structure the
unsecured ratings would likely be rated in the 'CCC' category.

Fitch believes that the credit profile could face further
pressure as financing costs could be higher than initial pro
forma estimates.  Also, even a modest cyclical downturn could
negatively affect the company's capacity to service its
obligations.

ServiceMaster Co. -- http://www.servicemaster.com/-- (NYSE:SVM)  
currently serves residential and commercial customers through a
network of over 5,500 company-owned locations and franchised
licenses.  The company's brands include TruGreen, TruGreen
LandCare, Terminix, American Home Shield, InStar Services Group,
ServiceMaster Clean, Merry Maids, Furniture Medic, and
AmeriSpec.  The core services of the company include lawn care
and landscape maintenance, termite and pest control, home
warranties, disaster response and reconstruction, cleaning and
disaster restoration, house cleaning, furniture repair, and home
inspection.  The company has operations in Australia, Chile,
China, Dominican Republic, Hong Kong, Indonesia, Japan, and the
United Kingdom, among others.




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


PETROLEO BRASILEIRO: Ecuadorian Gov't May Cancel Contract
---------------------------------------------------------
Ecuador's Attorney General Xavier Garaicoa told Dow Jones
Newswires that the government may revoke Argentine firm
Petrobras Energia's operating contracts because the company
breached the terms of the accords.

Dow Jones says that some union workers at Ecuadorian state-owned
oil company Petroecuador and other social groups have called for
the cancellation of Petrobras Energia's contracts.  They
questioned the legality of a supposed transfer of assets when
Petroleo Brasileiro purchased Argentina's Perez Companc in 2002
and 2003 and renamed it Petrobras Energia.  It had assets in
Ecuador and across Latin America.

Mr. Garaicoa commented to Ecuador's Channel 4 television
station, "Probably we will have to think about canceling the
contract with Petrobras."

Dow Jones relates that Petrobras Energia, a unit of Brazilian
state-run oil firm Petroleo Brasileiro SA, had allegedly been
operating illegally in Ecuador.

"That is the obvious conclusion that appears after a simple
analysis from a legal point of view," Mr. Garaicoa told Dow
Jones.

As reported in the Troubled Company Reporter-Latin America on
July 10, 2007, Petroleo Brasileiro, considering the news aired
by the Ecuadorian and Brazilian media about supposed
irregularities committed by its controlled company Petrobras
Energia Equador, said it complied with all legal provisions in
all legal, contractual and administrative acts in that country.  
The company clarified that it has not been notified regarding
any investigation carried out by the Special Commission created
by the Ecuadorian Ministry of Mines and Energy as to its
contractual and legal obligations.  Moreover, it also states it
was not invited to provide information or possible
clarifications regarding any act that could be considered as an
irregularity under Ecuadorian law.

The Energy Ministry can decide on the cancellation of the
contracts, Dow Jones notes, citing Mr. Garaicoa.

Petrobras Energia Participaciones SA (Buenos Aires: PBE,
NYSE:PZE) through its subsidiary, explores, produces, and
refines oil and gas, as well as generates, transmits, and
distributes electricity.  It also offers petrochemicals, as well
as markets and transports hydrocarbons.  The company conducts
oil and gas exploration and production operations in Argentina,
Venezuela, Peru, Ecuador, and Bolivia.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
May 15, 2007, Fitch Ratings made assigned these actions on
Petrobras Energia:

     -- Local and foreign currency IDRs and following securities
        upgraded to 'BB' from 'B+':

     -- Senior unsecured notes due 2009;
     -- Senior unsecured notes due 2010;
     -- Senior unsecured notes due 2013;
     -- Guaranteed notes due 2017 to upgraded 'BBB-' from 'BB+'.


* ECUADOR: President Plans To Split Energy & Mines Ministry
-----------------------------------------------------------
Published reports say that Ecuadorian President Rafael Correa
has disclosed a plan to split the ministry of energy and mines
so that natural resources can be managed separately.

Ecuadorian deputy mining minister Jorge Jurado explained to
Business News Americas that the plan includes the creation of a
mining and hydrocarbons ministry.

Mr. Jurado commented to BNamericas, "The issue isn't completely
settled yet.  President Correa made some statements about the
division but there are still some details to outline.  The idea
is to give more importance to a mining and hydrocarbons
ministry."

The government wants to manage separately each sector that is
key to the economy of Ecuador, the reports say.  

                        *     *     *

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

In addition, these ratings were downgraded:

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

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

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

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




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


AES CORP: Alamitos Power Station Units Restart Operation
--------------------------------------------------------
The AES Corporation has restarted the operations of Units 5 and
6 at its Alamitos natural gas-fired power station in California,
Reuters reports, citing a report of the California Independent
System Operator.

Reuters relates that the units were shut down on July 6 for
"unplanned reasons."

According to Reuters, the 1,997-megawatt Alamitos plant is in
Long Beach in the Los Angeles County.  It has six units
including:

          -- two 175-megawatt Units 1 and 2,
          -- the 332-megawatt Unit 3,
          -- the 335-megawatt Unit 4,
          -- the 485-megawatt Unit 5, and
          -- the 495-megawatt Unit 6.

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

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

                        *     *     *

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


AES CORP: Says Commission Improperly Gets Proof for Zoning Law
--------------------------------------------------------------
The AES Corporation told the Daily Record that the Maryland
Critical Area Commission, which oversees local regulations for
protecting coastlines, improperly gathered evidence when it
approved the zoning law in June 2007.

The Daily Record relates that AES filed a complaint in Anne
Arundel County Circuit Court last week, saying that the
commission illegally ratified a Baltimore County law barring a
proposed liquefied natural gas terminal at Sparrows Point.  AES
had planned to build the project.

AES claimed that the commission didn't give correct
consideration to several details about the project's
environmental impact, the report says.  AES has asked the court
to order the commission to reconsider its decision.

According to the Daily Record, counties can make rules for
development around the coast.  The laws need the commission's
authorization.  

The Daily Record notes that the newly approved law adds
liquefied natural gas terminals to a list of banned projects
within 1,000 feet of the Chesapeake Bay.  The law has been
supported by a federal judge after a challenge by AES and is
being appealed further.  A change in the commission's position
on the law could affect the county's ability to implement it.

AES has asked for a judgment that the commission's approval of
the law was "arbitrary, capricious, unreasonable, not supported
by substantial evidence and an abuse of discretion," the Daily
Record relates.  The company also has asked the court to declare
that the commission's decision breached due process, as the
"commission accepted evidence from Baltimore County before it
voted but after the record in the case was closed."

The Daily Record reports that AES claimed that the "commission
ignored a potential conflict of interest" when it failed to
disallow its Baltimore County representative, who had testified
in favor of the law, from voting on the regulation.

Sparrows Point Project Director Kent Morton said in a statement
that the planned project would improve the environment around
the area.  According to him, the project would be in a
previously developed area, and planners have encouraged
development in coastal areas to be concentrated in those
locations.  He said, "As an 'intensely developed area' it is an
excellent candidate site for sensitive growth via re-development
with a clean industry such as we have planned."

Before the law was approved by the commission, a panel
considering the change urged members to deny the county's
request to add liquefied natural gas facilities to its critical
area protection plan, which then prompted Baltimore County
officials to ask that the commission temporarily postpone its
review of the change, the Daily Record states.

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

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

                        *     *     *

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


* EL SALVADOR: State Firm Expects Wind Power Project Report
-----------------------------------------------------------
El Salvador's state-run power firm Comision Ejecutiva
Hidroelectrica del Rio Lempa expects a report from a wind power
project study to be ready next month, Business News Americas
reports, citing a project official.

BNamericas relates that Comision Ejecutiva started in 2006 to
take wind speed measurements in these departments:

          -- La Union,
          -- Sonsonate,
          -- Metapan, and
          -- Ahuachapan.

The official told BNamericas that Comision Ejecutiva is
reviewing wind speed data with a consultant with the aim of
releasing findings next month.  "The Finnish Meteorological
Institute is helping process and interpret the data."

The project is the country's "farthest advanced wind power
generation initiative," BNamericas states, citing the official.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 15, 2007, Fitch Ratings affirmed these ratings on El
Salvador:

   -- Foreign and Local Currency Issuer Default Ratings
      at 'BB+';

   -- Short-term Issuer Default Rating at 'B'; and

   -- Country Ceiling at 'BBB-'.

Fitch said the rating outlook was stable.




=============
G R E N A D A
=============


DIGICEL LTD: Using ECI Telecom's Software to Boost Services
-----------------------------------------------------------
Digicel has chosen ECI Telecom Ltd.'s optical and Ethernet
software to expand its broadband services enabled by WiMAX
technology.  Digicel is the first GSM mobile provider in the
Caribbean to offer broadband wireless services via WiMAX to
business and residential subscribers.

Digicel deployed ECI's XDM(R) Multi-Service Transport Platform.  
Digicel's next generation network will offer cost-effective
fixed and mobile voice and data communications solutions to
corporate customers, including voice-over-Internet-protocol.  In
the Caribbean, and more specifically in Jamaica, previous
broadband offerings relied on fixed lines limiting services
offered to subscribers.  Most recently, Digicel purchased new
XDM nodes to increase bandwidth to support the growing broadband
wireless backhaul traffic island-wide into Kingston.

Digicel selected the XDM because of its efficient multi-degree
flexibility that enables several network layers on one platform
including WDM, Ethernet and SONET.  In addition, the XDM's All-
Range(TM) WDM optics support a full range of distances from
metro access to regional and long haul, providing Digicel with
easy and cost effective options for network expansion in new
regions to support new subscribers and services, while
maintaining reliability.

"As the largest GSM service provider in the Caribbean region, we
are constantly looking for innovative ways to provide our
customers with new and advanced services as part of our growing
portfolio of innovative products," said Digicel Jamaica's
Network Development and Rollout head Richard Brown.  "Out of all
the companies we evaluated, ECI had the most robust and
innovative solution that met our needs for deploying the
backhaul required island-wide for the new WiMAX network.  
Moreover, we have previously worked with ECI and were pleased
with our past experiences with them."

"We are excited to support Digicel in the growth of their WiMax
network.  This contract truly demonstrates the benefits of our
converged optical, Ethernet and SONET solution to maximize
service potential and manage new expansions for a growing
network like Digicel's," ECI Telecom's Americas Marketing Vice
President Emanuel Nachum, stated.  "Digicel recognized the
flexibility and cost-effectiveness of our offerings to meet
their various demands for new services in any network
environment."

                       About ECI Telecom

Israel-based ECI Telecom -- http://www.ecitele.com-- delivers  
innovative communications platforms to carriers and service
providers worldwide.  ECI provides efficient platforms and
solutions that enable customers to rapidly deploy cost-
effective, revenue-generating services.  Founded in 1961, ECI
has consistently delivered customer-focused networking solutions
to the world's largest carriers.  The company is also a market
leader in many emerging markets.  ECI provides scalable
broadband access, transport and data networking infrastructure
that provides the foundation for the communications of tomorrow,
including next-generation voice, IPTV, mobility and other
business software.

                       About Digicel Ltd.

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

                        *     *     *

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

Digicel Group Ltd.

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

Digicel Ltd.

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

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

Digicel International Finance Ltd.

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

Fitch said the outlook on all ratings was stable.




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


BRITISH AIRWAY: Panmure Gordon Puts Hold Rating on Firm's Shares
----------------------------------------------------------------
Panmure Gordon & Co. analysts have upgraded their rating on
British Airways Plc's shares to "buy" from "hold,"
Newratings.com reports.

According to Newratings.com, the target price for British
Airways' shares was set at 540 pounds.

The analysts said in a research note that British Airways' share
price dropped by 25% since February 2007.  

The analysts told Newratings.com that the recent "Open Skies
agreement" between the European Union and the US is unlikely to
have a "significant adverse impact on British Airways."

The fuel prices have increased in the recent past.  The revenue
environment, especially in the economy cabin, has become more
challenging, Newratings.com states, citing Panmure Gordon.

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

                        *     *     *

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

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

* Issuer: British Airways Plc

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

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




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


ALERIS INTL: Inks Deal to Buy Wabash Alloys for US$194 Million
--------------------------------------------------------------
Aleris International Inc. has entered into a definitive
agreement to acquire Wabash Alloys from Connell Limited
Partnership.  Aleris will pay approximately US$194 million, with
certain adjustments for working capital and other items.

Aleris expects the acquisition to be neutral to accretive to its
leverage ratio prior to any benefits from synergies, and
anticipates financing the acquisition from a combination of cash
flows from operations, additional draws of its revolving credit
facility, or the incurrence of additional debt, which may
include term credit facilities or bonds.

"Closing is expected to occur in the third quarter and is
subject to regulatory approvals and customary closing
conditions," Steve Demetriou, chairman and chief executive
officer, stated.  "We believe the acquisition of Wabash Alloys
will be an excellent strategic fit with Aleris's existing
specification alloy operations."

"The transaction provides outstanding opportunities to broaden
our customer base, optimize processing capabilities and enhance
our ability to meet the needs of our customers."  Mr. Demetriou
added.

                     About Wabash Alloys

Founded in 1958, Wabash Alloys-- http://www.wabashalloys.com/--
produces aluminum casting alloys and molten metal at its eight
plants located in Canada, Mexico and the United States.

                About Aleris International Inc.

Headquartered in Beachwood, Ohio, Aleris International Inc.
(NYSE: ARS) -- http://www.aleris.com/-- manufactures rolled   
aluminum products and offers aluminum recycling and the
production of specification alloys.  The company also
manufactures value-added zinc products that include zinc oxide,
zinc dust and zinc metal.  The company operates 50 production
facilities in North America, Europe, South America and Asia, and
has approximately 8,500 employees.

                        *     *     *

Standard & Poor's assigned Aleris International Inc. a B+ senior
secured first-lien term loan rating and gave the company a '2'
recovery rating after the report that the company increased
the term loan by US$125 million.  With the add-on, the total
amount of the facility is now US$1.23 billion.


CORPORACION DURANGO: S&P Puts B+ Long-Term Corp. Credit Rating
--------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B+' long-term
corporate credit rating to Monterrey, Mexico-based Corporacion
Durango S.A.B. de C.V.  S&P also assigned our 'B+' senior
unsecured debt rating to the company's proposed US$520 million
fixed-rate notes.  The outlook is stable.
      
"The rating reflects CD's high debt levels, a moderately
aggressive financial policy, and the natural risk associated
with the paper industry's cyclicality," said Standard & Poor's
credit analyst Juan Pablo Becerra.  These risks are partially
offset by CD's leading position in the containerboard and
packaging industries, and its vertical integration in Mexico.
     
The stable outlook reflects S&P's expectation that the company
will be able to maintain its business profile, generate positive
operating cash flow during the next two years, and not have
additional debt.  The rating could be raised if the company
reduces and maintains its total debt-to-EBITDA ratio below 3.5x.
On the other hand, the rating could be lowered if the company
does not generate positive cash flow during the next year and if
the total debt-to-EBITDA ratio remains above 4.5x.

Corporacion Durango, S.A. de C.V.(BMV: CODUSA), the largest
papermaker in Mexico, announced Tuesday that the First Federal
District Court in Durango, Mexico, has approved the Company's
plan of reorganization and declared the termination of its
"Concurso Mercantil" proceeding.


FORD MOTOR: Submits Bid for Romanian Auto Assembly Plant
--------------------------------------------------------
Ford Motor Company's bid for the Automobile Craiova assembly
plant in Romania has been handed over to the Romanian Authority
for State Assets Recovery, meeting the July 5 deadline for bid
submissions.

The bid was formally opened by the Privatisation Commission at
an event in Bucharest on July 6, 2007.

"We are pleased to confirm that we have submitted our bid to
purchase the Romanian auto plant in Craiova," Ford of Europe
President and CEO John Fleming said.  "Although it is too early
to discuss specifics of our proposal, we believe it offers the
best combination of financial, technological and environmental
commitments under which Ford would turn the Craiova facility
into a highly innovative world-class manufacturing complex with
significant employment opportunities."

"For more than two years, we have maintained a strong level of
interest in the Automobile Craiova facility," Lyle Watters, Ford
of Europe's Director for Business Strategy said.  "We have
visited the plant on several occasions and met with management
and Union leaders.  Now, we are very excited to arrive at the
point where we can share our long-term strategic plan with the
Privatization Committee."

"Our goal is to provide the people of Romania with exciting,
locally-produced and high quality Ford vehicles, as well as to
develop a significant export market for those vehicles that will
contribute positively to the Romanian economy," Mr. Watters
added.

Ford believes the facility in Craiova is a strategically
important site for the company's future growth.  Ford of Europe
produced 1.86 million units at seven assembly plants in 2006 and
additional manufacturing space is needed to meet its ambitious
new product and growth plans.

"If we are successful in our bid, we would expect to expand and
improve the Craiova manufacturing operations, increase
employment and attract additional suppliers to the area," Mr.
Fleming said.

Success for Ford would also allow the company to become an
integral member of the Romanian community.

"We see it as our corporate responsibility to make a positive
contribution to life in the communities where we operate," Mr.
Fleming said.  "We have demonstrated this already in countries
as diverse as Germany, Britain, Belgium, Turkey, Russia and
Spain, proving that Ford not only builds great vehicles but also
is a good neighbour and committed corporate citizen."

Ford of Europe is responsible for producing, selling and
servicing Ford brand vehicles in 47 individual markets.  The
first Ford cars were shipped to Europe in 1903 -- the same year
Ford Motor Company was founded.  Ford of Europe now employs
approximately 66,000 people.  In addition to Ford Motor Credit
Company, Ford of Europe operations include Ford Customer Service
Division and 22 manufacturing facilities, including joint
ventures.

                     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.

                         *    *    *

To date, Ford Motor Company still carries Standard & Poor's
Ratings Services 'B' long-term foreign and local issuer credit
ratings and negative ratings outlook.

At the same time, the company carries Moody's Caa1 issuer and
senior unsecured debt ratings and negative ratings outlook.


FORD MOTOR: Sets July 19 Deadline for Jaguar & Land Rover Bids
--------------------------------------------------------------
Ford Motor Company has set July 19, 2007, as the deadline for
bidders to present indicative bids for its Jaguar and Land Rover
car brands, Robert Wright of the Financial Times reports citing
the Sunday Times and sources within the company.

As reported in the Troubled Company Reporter on June 13, 2007,
the company employed help from investment banks including
Goldman Sachs, HSBC and Morgan Stanley to explore the sale of
its two British luxury brands, which had lost $12.6 billion last
year.

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.

                         *    *    *

To date, Ford Motor Company still carries Standard & Poor's
Ratings Services 'B' long-term foreign and local issuer credit
ratings and negative ratings outlook.

At the same time, the company carries Moody's Caa1 issuer and
senior unsecured debt ratings and negative ratings outlook.


GENERAL MOTORS: European Arm Unveils Environmental Strategy
-----------------------------------------------------------
General Motors Europe has launched an environmental strategy
focusing short-term on reducing CO2 emissions and long-term on
introducing new propulsion technologies.

The strategy's key points are:

   -- Opel/Vauxhall will introduce an ecoFLEX variant emitting
      lower CO2 levels in each model line; premiere at IAA in
      September 2007;

   -- GM will present HydroGen4, its next generation hydrogen
      fuel cell vehicle, at the IAA;

   -- Cadillac will launch the BLS as bioethanol (E85) variant
      in fall 2007;

   -- Opel/Vauxhall and Chevrolet will offer E85 vehicles as of
      2010; and

   -- 16 new GME engine families and ten transmission families
      by 2012.

GME has intensively addressed the subject of emissions reduction
and improved fuel economy for many years.  This is evident in
the current wide product portfolio, in which many vehicles meet
or undercut the level of 140 g/CO2 per kilometer.

As GM's largest brand in Europe, Opel/Vauxhall will unveil
ecoFLEX models at the 2007 Frankfurt motor show in September.  
These especially pro-environmental automobiles combine economy
and driving enjoyment with low fuel consumption and reduced CO2
emissions in each vehicle class.  The premiere model is a Corsa
1.3 CDTI emitting only 119 g/km of CO2, which will be launched
in 2008.  The Swedish premium brand Saab is also expanding its
range of BioPower engines across its entire model portfolio this
year.  Cadillac will offer a similar E85 variant as of fall
2007, and in 2010, E85 vehicles are expected to be available for
Opel/Vauxhall and Chevrolet.

Between 2007 and 2012, GME will also introduce 16 new engine
families with a total of 93 variants, as well as ten
transmission families with 48 variants.

"A vehicle's CO2 emissions are an important parameter, but by no
means the only measurement of its environmental compatibility,"
said General Motors Europe President Carl-Peter Forster.  That's
why we are not restricting ourselves to the production of
single, eco-friendly prestige objects."

"We want all GME vehicles to protect natural resources as much
as possible throughout the entire life cycle, from development
through to the recycling of materials.  The start of
Opel/Vauxhall's ecoFLEX environmental initiative at the
beginning of June was an important step, as this campaign
promotes the scrapping of old vehicles which do not meet today's
environmental standards," Mr. Forster emphasized.

             More Efficient Engine Technology
               & Use of Alternative Fuels

In order to further reduce fleet fuel consumption and CO2
emissions, GM is pursuing a strategy of short and mid-term
objectives.  Conventional internal combustion engines will be
made more efficient and economical through continued
development, and greater use will be made of alternative fuels.  
Eco-Turbo and CNG are the engine concepts at the core of ecoFLEX
models.  Engines with larger displacements are being replaced by
new Eco-Turbo units with smaller cylinder volumes.  The Eco-
Turbo concept is used in both gasoline and diesel engines.

Opel and Saab are pioneers in the use of alternative fuels in
Europe with their successful CNG (Opel) and E85 BioPower models
(Saab).  GM's environmental strategy pursues a clear global
objective of energy diversification and focus on more than one
technology.

            E-Flex & Fuel Cells as Propulsion
                Systems of the Future

Presented this year, GM's E-Flex system enables multiple
propulsion systems to be installed in a common, electrically
driven chassis.  Long-term, GM is working flat-out on the
introduction of the hydrogen fuel cell -- currently the only
zero-emission vehicle option.  GM has already invested more than
one billion US dollars in this technology.

The research department of the Fuel Cell Activities Center is
currently being integrated into regular production development,
giving it a central role within GM.

The GM HydroGen4 -- the European version of the Chevrolet
Equinox Fuel Cell vehicle -- will be presented at the IAA and
marks the next step toward fuel cell production readiness.  A
fleet of ten vehicles will undergo testing in Berlin as of next
year.

                    About General Motors

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

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

                            *    *    *

Standard & Poor's Ratings Services assigned its 'B+' bank loan
rating to General Motors Corp.'s proposed $1.5 billion senior
term loan facility, expiring 2013, with a recovery rating of
'1'.  The 'B+' rating was placed on Creditwatch with negative
implications, consistent with the other issue ratings of GM,
excluding recovery ratings.

Moody's Investors Service assigned a Ba3, LGD1, 9% rating to the
proposed $1.5 Billion secured term loan of General Motors
Corporation.  The term loan is expected to be secured by a first
priority perfected security interest in all of the US machinery
and equipment, and special tools of GM and Saturn Corporation.


GRUPO IUSACELL: Azteca Shareholders Getting 1 Share Per C96 CPOs
----------------------------------------------------------------
TV Azteca, S.A. de C.V. has said that, as previously detailed,
its shareholders will receive one share of Grupo Iusacell --
wireless telecommunications service provider in Mexico with
nationwide coverage -- for every 96 TV Azteca CPOs.  The
distribution represents an approximate yield of 17% per TV
Azteca CPO, based on the closing price of the Grupo Iusacell
share and the Company CPO on July 6.

The ex-coupon date was July 10.  The holders of TV Azteca CPOs
at the end of the operations of the Mexican Stock Market that
day will get Grupo Iusacell shares on July 16.

According to BMV regulations, on July 10 after market's close,
the price of the company's CPO will be adjusted by the value
that represents the market price of one Grupo Iusacell share as
a proportion of the closing market price of 96 TV Azteca CPOs on
the same day.

Once the corresponding value of Grupo Iusacell's share is
deducted from the TV Azteca CPO, a public auction, among all
interested market participants, will be held thirty minutes
prior the opening of the market of July 11 to determine the
opening price of the company's CPO.

                       About TV Azteca

TV Azteca (BMV: TVAZTCA) (Latibex: XTZA) is one of the two
largest producers of Spanish-language television programming in
the world, operating two national television networks in Mexico
-- Azteca 13 and Azteca 7 -- through more than 300 owned and
operated stations across the country.  TV Azteca affiliates
include Azteca America Network, a new broadcast television
network focused on the rapidly growing US Hispanic market, and
Todito, an Internet portal for North American Spanish speakers.

                     About Grupo Iusacell

Headquartered in Mexico City, Mexico, Grupo Iusacell, SA de CV
(BMV: CEL) -- http://www.iusacell.com-- is a wireless cellular       
and PCS service provider in Mexico with a national footprint.
Independent of the negotiations towards the restructuring of its
debt, Grupo Iusacell reinforces its commitment with customers,
employees and suppliers and guarantees the highest quality
standards in its daily operations offering more and better voice
communication and data services through state-of-the-art
technology, including its new 3G network, throughout all of the
regions in which it operate.

As of Dec. 31, 2005, Grupo Iusacell's stockholders' deficit
widened to MXN2,076,000,000 from a deficit of MXN1,187,000,000
at Dec. 31, 2004.

Grupo Iusacell filed for bankruptcy protection on June 18 under
Mexican Law to prevent creditors from disrupting its debt
restructuring talks.  On July 14, 2006, Gramercy Emerging
Markets Fund, Pallmall LLC and Kapali LLC, owed an aggregate
amount of US$55,878,000 filed an Involuntary Chapter 11 Case
against Grupo Iusacell's operating subsidiary, Grupo Iusacell
Celular, SA de CV (Bankr. S.D.N.Y. Case No. 06-11599).  Alan M.
Field, Esq., at Manatt, Phelps & Phillips, LLP, represents the
petitioners.  Iusacell Celular then filed for bankruptcy
protection under Mexican Law on July 18, 2006.

The involuntary petition in the United States was dismissed in
December 2006.


LEAR CORP: American Real Ups Offer to US$37.25 Per Share
--------------------------------------------------------
Lear Corporation disclosed Monday that its Board of Directors
has approved an amendment to the Merger Agreement with American
Real Estate Partners, L.P.

Under this amendment, AREP has agreed to increase its offer
price for shares of Lear common stock from $36 to $37.25 per
share.

"The Lear Board concluded unanimously that the original Merger
Agreement with AREP was fair and in the best interests of Lear's
stockholders.  The increased price makes the transaction even
more attractive," commented Larry W. McCurdy, Lear's lead
independent director.  "We believe the revised price represents
a meaningful increase in value for Lear stockholders, and we
strongly encourage a vote in favor of the revised Merger
Proposal," Mr. McCurdy added.

Under the amended Merger Agreement, and subject to certain
exceptions, in the event that holders of a majority of Lear's
outstanding shares do not approve the Merger Proposal by
July 16, 2007, AREP will be entitled to receive a payment of
US$12.5 million in cash as well as 335,570 shares of Lear common
stock.

In addition, the company has agreed to increase the Icahn
group's share ownership limitation under Section 203 of the
Delaware General Corporation Law from 24% to 27% of Lear's
outstanding common stock.  The amended Merger Agreement will
terminate by its terms in the event that Lear's stockholders do
not approve the Merger Proposal by July 16, 2007.

The consummation of the merger is subject to customary
conditions, including approval by the holders of a majority of
the outstanding shares of the Company's common stock.  Lear
stockholders are encouraged to read the definitive Proxy
Statement and Supplements for complete details regarding the
Merger Agreement, and to complete and sign their proxy/voting
instruction cards.

                     About American Real

American Real Estate Partners, L.P. -- http://www.arep.com/--
(NYSE: ACP), a master limited partnership, is a diversified
holding company engaged in a three primary business segments:
Gaming, Real Estate and Home Fashion.

                        About Lear Corp.

Based in Southfield, Michigan, Lear Corporation (NYSE:LEA) --
http://www.lear.com/-- supplies automotive interior systems and
components.  Lear provides complete seat systems, electronic
products and electrical distribution systems and other interior
products.  The company has more than 90,000 employees at 236
facilities in 33 countries.

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

                         *     *     *

As reported in the Troubled Company Reporter on May 16, 2007,
Moody's Investors Service confirmed Lear Corp.'s existing
ratings consisting of a B2 corporate family rating, B3 senior
unsecured notes, and B2 secured bank term loan.


LEAR CORP: To Adjourn Annual Meeting to July 16 on Amended Offer
----------------------------------------------------------------
Lear Corporation disclosed that in conjunction with the amended
Merger Agreement with American Real Estate Partners, L.P., it
intends to convene its Annual Meeting of Stockholders planned
for July 12, 2007 at 10:00 a.m. (Eastern Time) and then
immediately adjourn the meeting, with no vote being taken on any
matter, until Monday, July 16, 2007 at 1:00 p.m. (Eastern Time).

The location for both meetings is the Hotel du Pont, located on
11th and Market Streets, Wilmington, Delaware 19801.  Lear
stockholders of record as of May 14, 2007 are eligible to vote
on the Merger Proposal and other matters that will be considered
at the July 16, 2007 meeting.

A Proxy Supplement outlining the revised terms will be filed
with the U.S. Securities and Exchange Commission, and mailed to
all Lear stockholders of record who do not exercise their
appraisal rights.  If stockholders holding a majority of the
outstanding shares of Lear's common stock approve the revised
Merger Proposal, all Lear stockholders will receive US$37.25 in
cash following the closing.

As reported in the Troubled Company Reporter on June 26, 2007,
the company had previously rescheduled its 2007 Annual Meeting
to July 12, 2007, to allow stockholders sufficient time to
evaluate the company's response to recent criticisms of the
proposed merger with American Real.

                     About American Real

American Real Estate Partners, L.P. -- http://www.arep.com/--
(NYSE: ACP), a master limited partnership, is a diversified
holding company engaged in a three primary business segments:
Gaming, Real Estate and Home Fashion.

                      About Lear Corp.

Based in Southfield, Michigan, Lear Corporation (NYSE:LEA) --
http://www.lear.com/-- supplies automotive interior systems and
components.  Lear provides complete seat systems, electronic
products and electrical distribution systems and other interior
products.  The company has more than 90,000 employees at 236
facilities in 33 countries.

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

                         *     *     *

As reported in the Troubled Company Reporter on May 16, 2007,
Moody's Investors Service confirmed Lear Corp.'s existing
ratings consisting of a B2 corporate family rating, B3 senior
unsecured notes, and B2 secured bank term loan.


MEGA BRANDS: S&P Affirms Corporate Credit Rating at B+
------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B+' corporate
credit and bank loan ratings on Montreal, Quebec-based leading
toy manufacturer MEGA Brands Inc.  In addition, S&P revised the
recovery rating on the company's bank loan to '3' from '2'.  The
'3' recovery rating indicates an expectation of meaningful (50%-
70%) recovery of principal in the event of a payment default, in
contrast to a '2' recovery rating, which indicates the
expectation of substantial (70%-90%) recovery of principal.  The
revision to the recovery rating is due to the recent change in
Standard & Poor's recovery scale, as well as the use of a lower
EBITDA amount and EBITDA multiple in the event of default.
   
At the same time, Standard & Poor's removed the ratings from
CreditWatch with negative implications, where they were placed
April 20, 2007.  The outlook is stable.
   
"The rating affirmation and stable outlook follow our review of
MEGA Brands' operating and financial strategies, in the context
of the challenges it has faced with the Magnetix product, other
litigation, and an intensely competitive environment," said
Standard & Poor's credit analyst Lori Harris.  "Furthermore, the
company has announced a CDN$78 million offering of common
shares, net proceeds of which are expected to repay debt, which
will positively affect MEGA Brands' financial risk profile," Ms.
Harris added.  Into the affirmation, S&P incorporated an
expectation that MEGA Brands will have no additional material
Magnetix-related, one-time expenses and that financial
performance will show improvement in the medium term.
   
The ratings on MEGA Brands reflect its weak financial profile;
customer concentration; seasonal sales; litigation risk; and
challenging toy industry fundamentals, including a very
competitive operating environment and ongoing reliance on
successful new product introductions.  These factors are
partially offset by the company's good market position within
its categories and brand equity.
   
The stable outlook reflects the expectation that MEGA Brands
will maintain its leading position in its core markets and that
credit measures will remain in line with Standard & Poor's
expectations.  

Furthermore, the stable outlook incorporates the expectation
that any material problems related to the Magnetix brand are
behind the company.  The ratings could be revised upward if the
company strengthens its business risk profile through building
its market position or if MEGA Brands improves its financial
risk profile.  Should MEGA Brands experience future material
Magnetix-related, one-time expenses or the company's financial
performance is not in line with Standard & Poor's expectations
in the next several quarters, the outlook or ratings could face
pressure.

MEGA Brands Inc. -- http://www.megabrands.com/-- (TSE:MB) is a
distributor of construction toys, games & puzzles, arts & crafts
and stationery.  The company is headquartered in Montreal,
Canada and has offices in Belgium, United Kingdom, Germany,
France, Spain, Mexico, and Australia.


TV AZTECA: Shareholders Getting 1 Iusacell Share Per C96 CPOs
-------------------------------------------------------------
TV Azteca, S.A. de C.V. has said that, as previously detailed,
its shareholders will receive one share of Grupo Iusacell --
wireless telecommunications service provider in Mexico with
nationwide coverage -- for every 96 TV Azteca CPOs.  The
distribution represents an approximate yield of 17% per TV
Azteca CPO, based on the closing price of the Grupo Iusacell
share and the Company CPO on July 6.

The ex-coupon date was July 10.  The holders of TV Azteca CPOs
at the end of the operations of the Mexican Stock Market that
day will get Grupo Iusacell shares on July 16.

According to BMV regulations, on July 10 after market's close,
the price of the company's CPO will be adjusted by the value
that represents the market price of one Grupo Iusacell share as
a proportion of the closing market price of 96 TV Azteca CPOs on
the same day.

Once the corresponding value of Grupo Iusacell's share is
deducted from the TV Azteca CPO, a public auction, among all
interested market participants, will be held thirty minutes
prior the opening of the market of July 11 to determine the
opening price of the company's CPO.

                     About Grupo Iusacell

Headquartered in Mexico City, Mexico, Grupo Iusacell, SA de CV
(BMV: CEL) -- http://www.iusacell.com-- is a wireless cellular       
and PCS service provider in Mexico with a national footprint.
Independent of the negotiations towards the restructuring of its
debt, Grupo Iusacell reinforces its commitment with customers,
employees and suppliers and guarantees the highest quality
standards in its daily operations offering more and better voice
communication and data services through state-of-the-art
technology, including its new 3G network, throughout all of the
regions in which it operate.

                       About TV Azteca

TV Azteca (BMV: TVAZTCA) (Latibex: XTZA) is one of the two
largest producers of Spanish-language television programming in
the world, operating two national television networks in Mexico
-- Azteca 13 and Azteca 7 -- through more than 300 owned and
operated stations across the country.  TV Azteca affiliates
include Azteca America Network, a new broadcast television
network focused on the rapidly growing US Hispanic market, and
Todito, an Internet portal for North American Spanish speakers.

                        *    *    *

Moody's Investor Services rated TV Azteca's senior unsecured
debt at B1.




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


* PANAMA: Constructora Urbana Bags First Canal Award
----------------------------------------------------
Local company Constructora Urbana SA has been awarded the first
contract to participate in the expansion of the Panama Canal, a
project estimated to cost US$5.2 billion.

Constructora Urbana was awarded a US$41 million contract to dig
6.7 kilometers of new channel in the waterway, Inside Costa Rica
Daily News reports.

According to Inside Costa Rica, the Panamanian company outbids
13 Asian, European and U.S. consortiums for the right to move an
estimated 1.3 million cubic meters (46 million cubic feet) of
sediment and earth on the Pacific side of the canal.  Work will
start in 2008 and end in 2010.

The waterway will be expanded to accommodate larger ships.  The
expansion plan, expected to be completed in 10 years, includes
building of lanes and a third set of locks for supertankers and
larger cargo ships carrying 12,000 containers each.  Currently,
the canal can only gave passage to ships that carry at most
5,000 containers.  The canal is being used by about 14,000 ships
as a shortcut between the Atlantic and Pacific Oceans, avoding
the journey around South America.

                       *    *    *

Fitch Ratings assigned these ratings on Panama:

                    Rating     Rating Date
                    ------     -----------
  Country Ceiling    BBB      Apr.  8, 2005
  Long Term IDR      BB+      Dec. 14, 2005
  Short Term IDR       B      Dec. 14, 2005
  Local Currency
  Long Term Issuer
  Default Rating     BB+      Dec. 14, 2005  

                       *     *     *

As reported in the Troubled Company Reporter-Latin America on
May 8, 2007, Standard & Poor's Ratings Services revised its
outlook on its 'BB' long-term sovereign credit rating on the
Republic of Panama to positive from stable and affirmed its 'B'
short-term foreign currency sovereign credit rating on the
republic.




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


AVNET INC: Unit Acquires UK-Based Interconnect
----------------------------------------------
Avnet, Inc. and Avnet Electronics Marketing EMEA's business unit
Avnet Time has acquired the UK-based Interconnect, Passive and
Electromechanical distributor, Flint Distribution Ltd.  Flint
will be combined with the Avnet Time organisation.  The newly
formed business will have annual revenues of 31 Million Euros.
Carl Barton, Managing Director and Co-Founder of Flint, will
lead the new, larger Avnet Time business in the UK and Ireland.
Vince Clark, Avnet Time's UK manager, will head up the sales
organisation.  Avnet Time and Flint customers will have full
access to an expanded line card and thus enjoy one of the best
IP&E product portfolios in the industry.

Flint is one of the regions leading independent specialist
electronic component distributors in IP&E products.  With 55
employees it serves over 1600 customers across a broad range of
industry sectors, including EMS, security, instrumentation,
automation and industrial controls.  Over the years, Flint has
established a strong reputation in the market, for its excellent
on-time delivery performance and an outstanding service level,
particularly for those customers seeking value-added services
such as Flint's unique PARETO vendor-managed inventory system.

According to Flint Managing Director and Co-Founder Carl Barton,
"We have a very loyal and high quality team and I am confident
that their career opportunities will be enhanced by joining
Avnet Time.  Too often, our operational excellence and superior
customer service get lost in vendor reduction programmes.
Therefore, all of the Flint board members believe that the
combined strengths of Avnet and Flint provides the best option
for customers, suppliers and staff alike.  Flint has been my
life for over 20 years and my overriding objective was to ensure
that 'my baby' went to the best possible home.  I am delighted
to see Flint at the core of Avnet Time's exciting plans for the
UK & Ireland and that I can be a vital part of this new
strategy."

Patrick Zammit, President of Avnet Electronics Marketing EMEA
stated: "We have very exciting growth plans for Avnet Time
across Europe and the acquisition of Flint is a great example of
our commitment to grow IP&E in the region.  As part of the
acquisition, both customer sets will gain access to industry
leading franchises that have not been part of our respective
portfolios.  We are confident that our suppliers and customers
will embrace the opportunities that this new organization can
offer."

Avnet Time President Klaus Emme said, "This acquisition is
excellent for all parties, not just Flint and Avnet, but also
for customers and suppliers.  Flint has an unequalled reputation
for service excellence and process & operational innovation.
Therefore, our intent is to fully merge best people and best
practices into Avnet Time's organisation."

Emme continued, "Coalville will become the centre of UK and
Ireland operations for Avnet Time.  Furthermore, Avnet Time's
Stevenage location will remain a critical sales branch with
refined geographical responsibilities, to continuously expand
our service offerings to customers."

Carl Barton and the new, bigger Avnet Time will work to make
sure that Flint's differentiating strengths in the market place
-- in particular operational excellence and innovation -- will
drive the new organization and that, customers, suppliers and
employees will experience a smooth transition with new, exciting
opportunities. Vince Clark, who will lead the sales organization
of the new company, commented: "I am extremely excited by the
opportunities that this new larger business will offer to our
customers.  By leaving both the Coalville operation and the
Stevenage sales office intact, customers will enjoy the stronger
market presence of Avnet Time and Flint combined, as well as the
benefit of Flint's unrivalled customer service."

                       About Avnet Time

Avnet Time, a business unit of Avnet Electronics Marketing EMEA,
an operating group of Avnet, Inc., is a highly focused
electronic component distributor, serving original equipment
manufacturers and specializing in interconnect, passive,
electromechanical and power supply products.  Avnet Time is
served internally by a common integrated Pan-European logistical
backbone and industry leading supply-chain services, while
leveraging the global logistical reach of Avnet Electronics
Marketing and its world-class supply-chain management
capabilities.  Specialization benefits customers and suppliers
by empowering the organization to make swift decisions and
increase speed of execution, thereby addressing time-to-market
issues that are driving the market for electronic products.
Avnet Time combines the agility of a smaller, focused company
with the considerable global resources of Avnet, Inc., to serve
the widely varying requirements of customers.

             About Avnet Electronics Marketing

Avnet Electronics Marketing is an operating group of Phoenix-
based Avnet, Inc., a Fortune 500 company.  Avnet Electronics
Marketing serves electronic original equipment manufacturers and
electronic manufacturing services providers in 70 countries,
distributing electronic components from leading manufacturers
and providing associated design-chain and supply-chain services.
The group's Web site is located at http://www.em.avnet.com/.

                            About Avnet

Headquartered in Phoenix, Arizona, Avnet, Inc.
-- http://www.avnet.com/-- distributes electronic components  
and computer products, primarily for industrial customers.  It
has operations in the following countries: Australia, Belgium,
China, Germany, Hong Kong, India, Indonesia, Italy, Japan,
Malaysia, New Zealand, Philippines, Singapore, and
Sweden, Brazil, Mexico and Puerto Rico.

                           *     *     *

The Troubled Company Reporter on March 6, 2007, reported that
Moody's Investors Service affirmed the Ba1 corporate family and
long-term debt ratings of Avnet, Inc. and revised the outlook to
positive from stable.




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


DAIMLERCHRYSLER AG: Chery & Chrysler Finalize Cooperative Pact
--------------------------------------------------------------
DaimlerChrysler AG's Chrysler Group and Chery Automobile Co.
have finalized the highly anticipated cooperative agreement
between the two automakers.

Chinese governmental authorities from the State Development and
Reform Commission officially approved the agreement and marked
the occasion by hosting a first-of-its-kind signing event.  The
ceremony was held at Beijing's Diaoyutai State Guesthouse.

Under the agreement, Chery and Chrysler will work together to
develop, manufacture and distribute Chery-made small and sub-
compact cars in North America, Europe and other major automotive
markets under the Chrysler brands.

"This is a win-win for both of our companies, and I am confident
this will be a successful relationship," said Chery Automobile
Co. Chairman and President Yin Tongyue.  "Chrysler brands are
very well known in the U.S. and Europe.  We're prepared to work
with Chrysler to expand their small-vehicle lineup with
competitive products and accelerate both our companies'
international competitiveness."

Chrysler will identify several small-car models now being
developed by Chery in China and work collaboratively to make any
necessary branding and regulatory modifications prior to their
entry into other markets.  Both companies also will jointly
develop new globally competitive products based on future Chery
small-car platforms.

Strategic growth in international markets -- while defending
market share in North America -- is an important part of
Chrysler's Recovery and Transformation Plan.

"This is the start of a very long relationship between Chrysler
and Chery," said Chrysler Group President and CEO Tom LaSorda.  
"Chery's participation in this agreement and their focus on
small and sub-compact cars will have a nearly immediate effect
on Chrysler's offerings in the small-vehicle segments.  This
strategic partnership is part of a new business model that is
allowing us to introduce all-new products more quickly, with
less capital spending."

This is not the first milestone for Chrysler in China.  
Chrysler's relationship with China began 25 years ago when it
formed Beijing Jeep Corp., the first international automotive
joint venture in the country.

The DaimlerChrysler Supervisory Board approved the framework for
the agreement earlier this year.

                    About DaimlerChrysler

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

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

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

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

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


DAIMLERCHRYSLER AG: Chrysler's June 2007 US Sales Dip 1.4%
----------------------------------------------------------
Chrysler Group reported sales for June 2007 of 183,347 units;
down 1% compared to June 2006 with 185,946 units.  All sales
figures are reported unadjusted.

"In a challenging market, Chrysler Group had softer sales in
June than a year ago.  We saw strong customer interest in our
newly launched, fuel-efficient models," said Darryl Jackson,
vice president for U.S. Sales.  "Supported by the fuel economy
message of our 'Maximize Your Miles' program, Chrysler continued
to show strong car sales with an increase of 55 percent over the
previous year."

Chrysler brand car sales in June were up 104 percent year-over-
year, while Dodge brand car sales increased 30 percent.  
Chrysler Group's offerings in the car segment include the
Chrysler Sebring Sedan and Sebring Convertible, the Chrysler
300, the Dodge Avenger, Dodge Caliber and Dodge Charger.

Jeep brand sales continued to increase in June and posted a gain
of 19 percent over the previous year.  This result was again
driven by the continuously strong Jeep Wrangler and Jeep
Patriot.  Jeep Wrangler and Wrangler Unlimited posted sales of
10,952 units, up 93% compared to June 2006 with 5,674 units.  
The Jeep Patriot also kept its momentum and finished June with
sales of 4,633 units, up 3%from May 2007.  The vehicle is one of
Chrysler Group's recently introduced models that achieve 30
miles per gallon or better in highway driving.  In addition, the
Jeep Grand Cherokee also posted a gain of 3% year-over-year.

The Chrysler Sebring Convertible finished the month with sales
of 3,759 units, which is 22% over May 2007.  The recently
launched redesigned model offers what no other convertible has
offered before -- three automatically latching convertible top
options: vinyl, cloth and a body-color painted steel retractable
hard top, all of which can be retracted with a push of a button
on the key fob.

Sales of the Dodge Charger increased in June by 19% with 11,529
units compared to 9,710 units in the previous year.

"As our strong car sales in May and June demonstrate, our
'Maximize Your Miles' program resonated well with customers,"
said Michael Keegan, vice president - Volume Planning and Sales
Operations.  "Moving forward, Chrysler Group will extend its
low-rate financing plus additional bonus cash in July, with a 0%
APR offering for 60 months on select models.  These great value
packages were successful in the recent months as well."

Chrysler Group finished the month with 485,429 units of
inventory, or a 71-day supply.  Inventory is down by 25%
compared to June 2006 when it was at 647,695 units.

Posting its highest month ever of sales outside of North America
and sustaining 25 consecutive months of year-over-year sales
gains; Chrysler Group's International monthly sales increased 21
percent to 22,901 units in June 2007 compared to 18,971 units in
June 2006.

"The strength of our new product portfolio coupled with the
support of our dealer network outside North America is driving
the growth we have seen so far this year," said Thomas Hausch -
vice president of International Sales.  "We expect to maintain
the double digit growth this year, including record export
numbers, and continue to strategically grow production volumes
and sales outlets outside North America for all three brands."

                    About DaimlerChrysler

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

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

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

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

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


DAIMLERCHRYSLER AG: US Sales Drop 2% to 202,936 for June 2007
-------------------------------------------------------------
DaimlerChrysler AG reported total group sales of 202,936
passenger vehicles in the U.S. for June 2007, a 2 percent
decrease compared to June 2006.  All sales figures in this
release are on an unadjusted basis unless otherwise noted.

Chrysler Group, consisting of the Chrysler, Jeep and Dodge
brands, posted sales of 183,347 vehicles in the U.S., a
1 percent decline in June 2007.

Spurred by the "Maximize Your Miles" ad campaign which
highlights the fuel efficiency of its new cars and small SUVs;
Chrysler Group combined car sales increased 55 percent for the
month.  In addition, led by the sales momentum of the Jeep
Wrangler, total Jeep brand sales rose 19 percent in June.  
Following its most aggressive product launch in company history
of 10 all-new vehicles in 2006, Chrysler Group continues its
product offensive with the launch of eight all-new vehicles in
2007.

MBUSA's sales highlights for the month include gains from the
entry-level of the Mercedes portfolio, the C-Class, to its high-
end CL-Class.  Compared to June of last year, C-Class sedans
posted a 12 percent increase (4,776 vs. 4,250 units), and CL-
Class coupes recorded a 322 percent jump (266 vs. 63 units).  
Year-to-date, MBUSA recorded its best first-half of the year
ever with 118,240 units sold in the first six months of the
year, a 3 percent increase over the same period last year.  June
2007 had 27 selling days and June 2006 had 26 selling days.

                      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.


NORTHWEST AIRLINES: Fitch Puts EETC's Ratings on Positive Watch
---------------------------------------------------------------
In the wake of Northwest Airlines Corp.'s emergence from Chapter
11 bankruptcy protection on May 31, 2007, Fitch Ratings has
placed NWA Enhanced Equipment Trust Certificate transactions on
Rating Watch Positive.  EETC's are hybrid corporate - structured
debt obligations in which payment on the notes is effectively
supported by the underlying corporate entity, while structured
elements of the transaction provide some protection to investors
in the event of an issuer default.  As such, Fitch's ratings on
EETC transactions begin with the underlying Issuer Default
Rating of the issuing entity and are adjusted upward depending
on the structural enhancements in place.  Based on the
foregoing, Fitch lowered its EETC ratings for NWA following
their Sept. 14, 2005 bankruptcy filing.  As a result of NWA's
re-emergence from bankruptcy protection, Fitch anticipates that,
subject to the availability of certain information related to
the collateral and any modifications of transaction structures,
ratings on EETC tranches will improve due to the improvement in
the implied credit-worthiness of the issuer.  The affected EETC
classes are:

NWA Trust No. 2

   -- Class A rated 'BBB+';
   -- Class B rated 'BB';
   -- Class C rated 'B';
   -- Class D rated 'CCC/DR1'.

Northwest Airlines Pass Through Certificates, Series 1996-1

   -- Class A rated 'B-/DR2';
   -- Class B rated 'CC/DR6';
   -- Class C rated 'C/DR6'.

Northwest Airlines European Enhanced Equipment Trust
Certificates,
Series 2001-2

   -- Class A rated 'BBB+';
   -- Class B rated 'B'.

Northwest Airlines Pass Through Certificates, Series 2002-1

   -- Class C-1 rated 'B';
   -- Class C-2 rated 'B'.

Northwest Airlines Pass Through Certificates, Series 2003-1

   -- Class D rated 'C'.

Northwest Airlines Corp. (NYSE: NWA) -- http://www.nwa.com/--   
is the world's fourth largest airline with hubs at Detroit,
Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and about
1,400 daily departures.  Northwest is a member of SkyTeam, an
airline alliance that offers customers one of the world's most
extensive global networks.  Northwest and its travel partners
serve more than 900 cities in excess of 160 countries on six
continents, including Italy, Spain, Japan, China, Venezuela and
Argentina.

The company and 12 affiliates filed for chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930).  Bruce
R. Zirinsky, Esq., and Gregory M. Petrick, Esq., at Cadwalader,
Wickersham & Taft LLP in New York, and Mark C. Ellenberg, Esq.,
at Cadwalader, Wickersham & Taft LLP in Washington represent the
Debtors in their restructuring efforts.  The Official Committee
of Unsecured Creditors has retained Akin Gump Strauss Hauer &
Feld LLP as its bankruptcy counsel in the Debtors' chapter 11
cases.  When the Debtors filed for bankruptcy, they listed
US$14.4 billion in total assets and US$17.9 billion in total
debts.  On Jan. 12, 2007 the Debtors filed with the Court their
Chapter 11 Plan.  On Feb. 15, 2007, they Debtors filed an
Amended Plan & Disclosure Statement.  The Court approved the
adequacy of the Debtors' Disclosure Statement on
March 26, 2007.  On May 21, 2007, the Court confirmed the
Debtors' Plan.  The Plan took effect May 31, 2007.


PETROLEOS DE VENEZUELA: Says Statoil Finds Oil Well in Deltana
--------------------------------------------------------------
Petroleos de Venezuela S.A. disclosed the discovery of an oil
well in Venezuela's Deltana Platform by Norwegian company
Statoil, Prensa Latina reports.

The well is expected to produce 58 million cubic feet per day,
the same report says, citing the Venezuelan oil firm.

According to a press statement from Petroleos de Venezuela, the
13,080-feet-deep Ballena well is part of a minimum program
agreed upon to explore Block 4 of the 553-square-mile platform,
Prensa Latina relates.

Under the company's exploratory program, three wells are to be
drilled.  Two of which have been completed, while the third one
-- Orca IX -- will be completed in the next few months, the same
report says.

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

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


PETROLEOS DE VENEZUELA: Subcontracted Workers Stop Drills
---------------------------------------------------------
Venezuelan state-run oil firm Petroleos de Venezuela SA said in
a statement that subcontracted employees had stopped several
drills in the western part of the nation.

Petroleos de Venezuela President and Energy and Oil Minister
Rafael Ramirez said in a statement, "We are ending an unusual
situation.  Drills owned by PDVSA have been operated by
subcontracted workers and interested sectors are attempting to
pressure us.  But we won't give in."

Business News Americas relates that almost 1,200 oil employees
had stopped 14 drills in Mongas.

According to Petroleos de Venezuela's statement, the company has
nationalized 46 drills in eastern and western parts of Venezuela
in 2007.  The firm admitted having difficulties in absorbing the
former workers of private companies.

Minister Ramirez told BNamericas, "We are going to absorb a
great number of workers."

Political leaders and union activists are pressuring Petroleos
de Venezuela to take on more workers than the firm needed to
operate the drills, BNamericas states, citing Minister Ramirez.

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.


                        ***********


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.

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delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are US$25 each.  For
subscription information, contact Christopher Beard at
240/629-3300.


              * * * End of Transmission * * *