TCRLA_Public/070719.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

          Thursday, July 19, 2007, Vol. 8, Issue 142

                          Headlines

A R G E N T I N A

ALITALIA SPA: AP Holding Seeks More Info on Italy's Stake
ALITALIA SPA: TPG Capital May Rejoin Melee for Italy's Stake
IMAGENES LAS: Seeks for Reorganization OK in Buenos Aires Court
TELEFONICA DE ARGENTINA: Suspends Lawsuit Against Government


B A H A M A S

ISLE OF CAPRI: Hires Virginia McDowell as President & COO


B E L I Z E

CENVEO INC: Inks Deal to Acquire Commercial Envelope


B E R M U D A

GLOBAL CROSSING: Gets FCC Okay for ST Telemedia to Boost Stake
COEUR D'ALENE: Gives Update on San Bartolome Works in Bolivia


B R A Z I L

BANCO NACIONAL: Ratifies BRL1.65-Billion Loan for Foz do Chapeco
BASELL AF: Purchase Deal Cues Fitch to Put Low B Ratings
COMPANHIA DE BEBIDAS: Prices BRL300 Million of Unsecured Notes
COMPANHIA SIDERURGICA: Acquiring Minas Gerais Iron Ore Producer
EMI GROUP: Terra Firma Extends GBP2.4 Bln. Cash Offer to July 19

JBS SA: S&P Affirms B+ Long-Term Corporate Credit Rating
LYONDELL CHEMICAL: To be Acquired by Basell for US$48 Per Share
LYONDELL CHEMICAL: Fitch Watches Ratings Due to Basell Deal
LYONDELL CHEMICAL: Basell Deal Cues Moody's to Watch Ratings
LYONDELL CHEMICAL: Basell Deal Cues S&P to Watch Ratings

MILLENNIUM CHEMICALS: Fitch Places Ratings on Negative Watch
MILLENNIUM CHEMICALS: Moody's Places Ratings Under Review
PETROLEO BRASILEIRO: Awards Two Contracts to Siemens' Unit
PETROLEO BRASILEIRO: Inks Engineering Support Contract with MCS
PETROLEO BRASILEIRO: Oil Production Rises 8.6% in June

POLYPORE INT'L: Completes Offering of 10-1/2% Sr. Discount Notes
POLYPORE INTERNATIONAL: S&P Revises Outlook to Positive
SANYO ELECTRIC: Plant Escapes Damage from 6.8 Magnitude Quake
SOLECTRON CORP: Bags Parata Systems APM Manufacturing Contract


C A Y M A N   I S L A N D S

ANTHRACITE BALANCED: Proofs of Claim Filing Is Until Aug. 9
ANTHRACITE BALANCED: Sets Final Shareholders Meeting for Aug. 9
ASAP FUNDING: Proofs of Claim Filing Deadline Is Aug. 9
ASIAN FUNDING: Proofs of Claim Filing Is Until Aug. 9
AS ASSIST: Will Hold Final Shareholders Meeting on Aug. 10

ASAP CURRENCY: Proofs of Claim Must be Filed by Aug. 9
BANK OF INDIA: Raises INR400 Crore from Perpetual Bond Issue
CHESHIRE FINANCE: Proofs of Claim Must be Filed by Aug. 9
DRAGON MBS: Proofs of Claim Filing Deadline Is Aug. 9
GREENSTREAM MF: Proofs of Claim Must be Filed by Aug. 9

H3 GLOBAL: Sets Final Shareholders Meeting for Aug. 10
H3 GLOBAL: Proofs of Claim Filing Is Until Aug. 10
IVY ENHANCED: Will Hold Final Shareholders Meeting on Aug. 10
HFT REAL: Proofs of Claim Filing Ends on Aug. 9
MORGAN STANLEY: Proofs of Claim Must be Filed by Aug. 9

OFFSHORE CRUDE: Sets Final Shareholders Meeting for Aug. 9


C O L O M B I A

ARMOR HOLDINGS: Stifel Nicolaus Maintains Hold Rating on Shares
ECOPETROL: Inks Cano Sur Block Exploration Contract with Shell

* COLOMBIA: State Firm Secures Long Distance License from Peru


C O S T A   R I C A

ALCATEL-LUCENT: Deploys Libya's Fibre Optic Backbone for EUR90MM
SERVICEMASTER CO: S&P Junks Rating on Proposed US$1.15-Bil. Loan
FREEPORT-MCMORAN: S&P Revises Outlook to Positive from Stable


G U A T E M A L A

LAND O'LAKES: Earns US$54.9 Million in First Quarter 2007
LAND O'LAKES: To Pay US$500,000 for Cache Trademark Infringement


H A I T I

DIGICEL: Enters Strategic Partnership with Caribbean Air Mail


H O N D U R A S

* HONDURAS: Gov't Launches Talks with Global Cement Firms


J A M A I C A

GOODYEAR TIRE: Unit's Pre-Tax Profit Drops to US$39.6MM in 2006
NATIONAL WATER: St. Andrew Residents Complain on Water Problems
BALLY TOTAL: Forbearance Period Extended to July 31
BALLY TOTAL: Plan Solicitation Still Ongoing
CKE RESTAURANTS: Closes La Salsa Mexican Retaurants Sale

CROWN HOLDINGS: June 30 Balance Sheet Upside-Down by US$388 Mil.
GLOBAL POWER: Exclusive Plan Filing Period Extended to August 22
PORTRAIT CORP: Court Confirms Amended Plan of Reorganization


P A N A M A

* PANAMA: Asep To Publish Mobile Number Portability Study
* PANAMA: Banana Exports Decline


P A R A G U A Y

GENERAL MOTORS: Will Acquire 50% Equity Interest in VM Motori
DUN & BRADSTREET: Mar. 31 Balance Sheet Upside-down by US$462.4M


P U E R T O   R I C O

AVNET INC: Operating Unit Inks Distribution Pact with Agilent
AVNET INC: Unit Signs Distribution Agreement with Diodes Inc.
DORAL FINANCIAL: Shareholders Approve Holdings Transaction
HORIZON LINES: Launches Offer for 9% Senior Notes Due 2012
MOTHERS WORK: June 2007 Sales Goes Down 5.4% to US$46.9 Million

LEAR CORP: S&P Assigns B Corporate Credit Rating
PETROLEOS DE VENEZUELA: Will Explore Two Blocks with Belarusneft


                            - - - - -

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


ABEL MARINOZZI: Trustee Verifies Proofs of Claim Until July 30
--------------------------------------------------------------
The court-appointed trustee for Abel Marinozzi e Hijos'
reorganization proceeding, verifies creditors' proofs of claim
until July 30, 2007.

Infobae didn't state the name of the trustee.

The trustee will present the validated claims in court as
individual reports on Sept. 11, 2007.  The National Commercial
Court of First Instance in Santa Fe 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 Abel Marinozzi 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 Abel Marinozzi's
accounting and banking records will be submitted in court on
Oct. 24, 2007.

The informative assembly will be held on April 29, 2008.
Creditors will vote to ratify the completed settlement plan
during the assembly.

The debtor can be reached at:

         Abel Marinozzi e Hijos S.R.L.
         (2173) Chabas-Sanford
         Santa Fe, Argentina
         Phone: 03464 480397
         E-mail: acopiomarinozzi@dat1.net.ar


AES CORP: Maryland Says No to Liquefied NatGas Terminal Project
---------------------------------------------------------------
Andy Rosen at the Daily Record reports that the state of
Maryland has decided that a proposal by The AES Corp. to
construct a liquefied natural gas terminal at Sparrows Point "is
not consistent" with the state's environmental laws.

The decision was made over the timeliness of the filing of
certain documents, the report says.

The Daily Record notes that AES may file for reconsideration of
the project to the U.S. Department of Commerce.

AES Project Director Kent Morton confirmed to the Daily Record
that the firm will appeal the decision.

Maryland's refusal to certify the project could make it
difficult for AES to move forward with the terminal as it is
planned, the Daily Record relates.

The Federal Energy Regulatory Commission spokesperson Tamara
Young-Allen commented to the Daily Record, "If the state denies
the [Coastal Zone Management Act] Certification, it can kill the
project."

The Daily Record says that the commission is the primary agency
that issues permits for liquefied natural projects.

According to the Daily Record, Maryland wanted to have more time
to decide on the project.

The decision was due now, the Daily Record says, citing a letter
to the company from the Maryland Department of the Environment.

Mr. Morton commented to the Daily Record, "AES expected the MDE
to deny our certification that the project we have proposed at
Sparrows Point was consistent with the Maryland Coastal Zone
Management Program."

Elder Ghigiarelli, MDE's federal consistency coordinator for the
Wetlands and Waterways Program, told the Daily Record that he
denied the certification of AES' proposed project as the firm
didn't indicate that it had obtained six necessary state
authorizations.

The Daily Record relates that Maryland and AES disagree on
whether those permits were required before the "consistency
decision."

Mr. Ghigiarelli explained to the Daily Record that MDE would
still certify the project if AES shows that it obtained the
authorizations.

According to the report, AES and MDE also disagreed about when
the Maryland's decision was due.

Maryland would make another decision in December 2007, six
months after the state's review of the project was supposed to
start, the Daily Record says, citing Mr. Ghigiarelli.  The state
doesn't have sufficient information to sign off on the terminal
project.

"The department simply cannot render a decision based on
incomplete information; doing so would not serve the interests
of the environment, the people of Maryland, and, in the long
run, AES," Mr. Ghigiarelli told the Daily Record.

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.


ALITALIA SPA: AP Holding Seeks More Info on Italy's Stake
---------------------------------------------------------
AP Holding S.p.A., AirOne S.p.A. and Intesa-San Paolo S.p.A.'s
acquisition vehicle, is seeking additional information relating
to its bid for Italy's 39.9% stake in Alitalia S.p.A., Adrian
Michaels writes for the Financial Times.

AP Holding, FT relates citing government officials, has
requested information regarding conditions that it wishes to
impose should it win the bidding process.

People privy to AirOne told FT that the sough-after information
is critical and includes possible negotiations with Alitalia's
unions.  Among the requested information relates to the ability
to restructure AZ Service, a firm half-owned by Alitalia that
runs maintenance and ground operations.  Bidders have said that
AZ Service would be a heavy drain on any new owner of Alitalia
but has an unclear status in the privatization process.

AP Holding, however, stressed that it is committed to trying to
strike a deal and has been holding talks with Alitalia's.

Sources suggest that even if Italy relays the needed
information, AP Holding might not have enough time to finalize
its bid.

Final bidders for Alitalia have until July 23, 2007, to submit
binding offers.

FT suggests that if AP Holding would not submit its bid on time,
Italy may have to restart the entire sale process under
different conditions.  Bidders had dropped out of the bidding
process apprehensive of the requirements set by the Italian
government.

                       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.


ALITALIA SPA: TPG Capital May Rejoin Melee for Italy's Stake
------------------------------------------------------------
The Italian government is holding talks with TPG Capital over a
possible re-bid by the private equity firm for Italy's 39.9%
stake in national carrier Alitalia S.p.A., Kevin Done and Paul
Bompard write for the Financial Times.

As reported in the TCR-Europe on June 1, 2007, the consortium of
TPG Capital, MatlinPatterson Global Advisers LLC and Mediobanca
S.p.A. withdrew its bid for Alitalia, saying it was not "in a
position to comply with all of the requirements."

The consortium described the requirements as "too complex and
cryptic."  A source close to the consortium told the Wall Street
Journal then that the group was apprehensive it could not meet
the July 2 deadline for submission of final offers and business
plan.

TPG Capital, FT reports, told the Italian government it may
rejoin the bidding process if the rules of the process were
changed.

FT suggests that TPG has regrouped with former consortium
partner MatlinPatterson.  The TCR-Europe reported on
June 22, 2007, that the Italian Finance Ministry has allowed
MatlinPatterson to submit a binding offer Alitalia.

Italy has extended to July 23, 2007, the deadline for final
bidders to submit binding offers for its 39.9% stake in national
carrier Alitalia, allowing potential buyers to review new
information relating to the national carrier.

As reported in the TCR-Europe on June 29, 2007, the consortium
of OAO Aeroflot and Unicredito Italiano S.p.A. withdrew its bid
for Alitalia after it and its advisors were not allowed access
to "critical information with respect to the commercial and
operational aspects of Alitalia's business to confidently
formulate a well supported business proposal to successfully
restructure the Italian carrier."

According to the Associated Press, Alitalia's bidding process
has been marred by concern over a lack of data and shifting
guidelines.  The Finance Ministry, while extending the bids
deadline, reaffirmed the conditions for the sale.

                         Offer Details

As previously reported, the Italian Finance Ministry said the
bids should include:

   -- details on financial sources;
   -- a EUR50 million bank guarantee;
   -- a definitive business plan; and
   -- details on a subsequent offer for minorities.

The ministry also required the bidders to explain how their
ownership structure will maintain access to Alitalia's portfolio
of air traffic rights with other countries, Thomson Financial
adds.

                          Point System

After receiving the bids, the ministry will assess the business
according to the criteria set earlier.

As previously reported, Alitalia's buyer must:

   -- retain Alitalia as Italy's national carrier for eight
      years, keeping its brand and logo during the period;

   -- keep Alitalia's headquarters in Italy; and

   -- ensure Alitalia has adequate level of local and
      international flights for five years.

The five-year business plan must include job levels and will be
binding for three years and can only be amended with the
government's approval.  The buyer also has to consult Alitalia's
unions and sector trade associations if it wants to amend its
staffing plans.

The ministry will use the point system to assess the plans:
10 points for each of the 12 targets and parameters, including
on growth, yields, and sustainability, Thomson Financial
reports.

A bidder must gain a minimum of 90 points to proceed to the next
phase of tender -- the opening of financial offers for the
Alitalia stake.

The financial offers also have to meet a minimum valuation on
Alitalia shares made by experts hired by the ministry, Thomson
Financial adds.

If the qualified bids are within five percent of each other, the
ministry will allow the bidders to amend their offers.

                          About Alitalia

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


COTESE SR: Seeks for Reorganization Okay in Buenos Aires Court
--------------------------------------------------------------
Cotese SRL has requested for reorganization approval after
failing to pay its liabilities since Dec. 26, 2006.

The reorganization petition, once approved by the court, will
allow Cotese 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 No. 9 in Buenos Aires.

Clerk No. 18 assists the court on this case.

The debtor can be reached at:

          Cotese SRL
          Argerich 1521
          Buenos Aires, Argentina


DESADI SA: Proofs of Claim Verification Is Until Sept. 4
--------------------------------------------------------
Fernando Greco, the court-appointed trustee for Desadi SA's
bankruptcy proceeding, verifies creditors' proofs of claim until
Sept. 4, 2007.

Mr. Greco will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 10 in Buenos Aires, with the assistance of Clerk
No. 20, 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 Desadi 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 Desadi's accounting
and banking records will be submitted in court.

La Nacion didn't state the reports submission dates.

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

The debtor can be reached at:

          Desadi SA
          Talcahuano 446
          Buenos Aires, Argentina

The trustee can be reached at:

          Fernando Greco
          Arenales 2365
          Buenos Aires, Argentina


IMAGENES LAS: Seeks for Reorganization OK in Buenos Aires Court
---------------------------------------------------------------
Imagenes Las Lomas SA has requested for reorganization approval
after failing to pay its liabilities since November 2006.

The reorganization petition, once approved by the court, will
allow Imagenes Las 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 No. 12 in Buenos Aires.

Clerk No. 24 assists the court on this case.

The debtor can be reached at:

          Imagenes Las Lomas SA
          Viamonte 611
          Buenos Aires, Argentina


LUKE MUNRO: Trustee Verifies Proofs of Claim Until Oct. 2
---------------------------------------------------------
Hector J. Vesetti, the court-appointed trustee for Luke Munro
SRL's reorganization proceeding, verifies creditors' proofs of
claim on Oct. 2, 2007.

Mr. Vesetti will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 2 in Buenos Aires, with the assistance of Clerk
No. 3, 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 Luke Munro 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 Luke Munro's
accounting and banking records will be submitted in court.

La Nacion didn't state the reports submission dates.

The informative assembly will be held on July 14, 2008.
Creditors will vote to ratify the completed settlement plan
during the assembly.

The debtor can be reached at:

         Luke Munro SRL
         Avenida Tte. Gral. D. Alvarez 2385
         Buenos Aires, Argentina

The trustee can be reached at:

         Hector J. Vesetti
         Montevideo 711
         Buenos Aires, Argentina


MC PARRI: Proofs of Claim Verification Deadline Is Oct. 10
----------------------------------------------------------
Manuel Alberdi, the court-appointed trustee for MC Parri's
bankruptcy proceeding, verifies creditors' proofs of claim until
Oct. 10, 2007.

Mr. Alberdi will present the validated claims in court as
individual reports on Nov. 23, 2007.  The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Brista 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 Brista's accounting
and banking records will be submitted in court on Feb. 12, 2008.

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

The trustee can be reached at:

          Manuel Alberdi
          Rodriguez Pena 189
          Buenos Aires, Argentina


NOR-JOR SRL: Proofs of Claim Verification Ends on Sept. 6
---------------------------------------------------------
Mario Leizerow, the court-appointed trustee for Nor-Jor SRL's
bankruptcy proceeding, verifies creditors' proofs of claim until
Sept. 6, 2007.

Mr. Leizerow will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 21 in Buenos Aires, with the assistance of Clerk
No. 42, 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 Nor-Jor 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 Nor-Jor's accounting
and banking records will be submitted in court.

La Nacion didn't state the reports submission dates.

Mr. Leizerow is also in charge of administering Nor-Jor's assets
under court supervision and will take part in their disposal to
the extent established by law.

The debtor can be reached at:

          Nor-Jor SRL
          Murguiondo 2168
          Buenos Aires, Argentina

The trustee can be reached at:

          Mario Leizerow
          Bouchard 644
          Buenos Aires, Argentina


STARCEL SRL: Trustee Verifies Proofs of Claim Until Sept. 7
-----------------------------------------------------------
Ruggiero, Cordero & Suarez, the court-appointed trustee for
Starcel S.R.L.' reorganization proceeding, verifies creditors'
proofs of claim on Sept. 7, 2007.

Ruggiero, Cordero will present the validated claims in court as
individual reports on Nov. 30, 2007.  The National Commercial
Court of First Instance in Mar del Plata, 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 Starcel 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 Starcel's accounting
and banking records will be submitted in court on Feb. 15, 200e.

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

The debtor can be reached at:

         Starcel S.R.L.
         Belgrano 3172, Mar del Plata
         Buenos Aires, Argentina

The trustee can be reached at:

         Ruggiero, Cordero & Suarez
         Avenida Luro 3894, Mar del Plata
         Buenos Aires, Argentina


TELECOM ARGENTINA: Union Rejects 16% Salary Hike Proposal
---------------------------------------------------------
Published reports say that Argentine telecom workers union
Foetra has rejected the 16% salary increase proposed by
operators, which included Telecom Argentina.

According to the press, Foetra called for a five-day strike from
July 16 to July 20.

Business News Americas relates that Argentine telecommunications
unions -- including Foetra and Fatel -- recently agreed to form
a temporary committee to coordinate their demands for salary
hikes from Telecom Argentina and Telefonica de Argentina.

The unions continue to demand a 25% salary increase.  In June
2007, they conducted three 48-hour strikes and one 72-hour
strike this month, BNamericas states.

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

                        *     *     *

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


TELEFONICA DE ARGENTINA: Suspends Lawsuit Against Government
------------------------------------------------------------
Telefonica de Argentina SA has begun working on a request to
keep its 2003 compensation claim against the Argentine
government on hold, news daily Infobae reports.

Business News Americas relates that Telefonica de Argentina
filed the US$2.38-billion damages claim with the World Bank's
international arbitration tribunal International Centre for
Settlement of Investment Disputes, seeking compensation for
billing restrictions imposed on it due to the Argentine 2002
financial crisis.

According to BNamericas, Telefonica first suspended the claim in
February 2006 to renegotiate the firm's concession contract with
the government.

BNamericas notes that Telefonica de Argentina would withdraw the
lawsuit once the new contract is signed, including all the
adjustments needed.

The report says that fixed line operators expect the government
to make a new telecommunications law that will let them offer
"bundled services over a single network," which is unallowed
under the current law.

Telecoms officials told BNamericas that they are analyzing
reforms to regulations.  However, they haven't given any
indication as to when they may be ready to go to parliament.

Headquartered in Buenos Aires, Argentina, Telefonica de
Argentina SA -- http://www.telefonica.com.ar/-- provides
telecommunication services, which include telephony business
both in Spain and Latin America, mobile communications
businesses, directories and guides businesses, Internet, data
and corporate services, audiovisual production and broadcasting,
broadband and Business-to-Business e-commerce activities.

                        *     *     *

As reported in the Troubled Company Reporter on Jan. 22, 2007,
Moody's Latin America changed the rating outlook to positive
from stable for Telefonica de Argentina's foreign currency
rating of B2 and for the Aa3.ar (national scale rating).  The
rating action was taken in conjunction with Moody's outlook
change to positive from stable for Argentina's B2 foreign
currency ceiling for bonds and notes on Jan. 16, 2007.
Telefonica de Argentina's foreign currency rating continues to
be constrained by Argentina's B2 ceiling.


TELEFONICA DE ARGENTINA: Union Balks at 16% Salary Hike Proposal
----------------------------------------------------------------
Published reports say that Argentine telecom workers union
Foetra has rejected the 16% salary increase proposed by
operators, which included Telefonica de Argentina.

According to the press, Foetra called for a five-day strike from
July 16 to July 20.

Business News Americas relates that Argentine telecommunications
unions -- including Foetra and Fatel -- recently agreed to form
a temporary committee to coordinate their demands for salary
hikes from Telecom Argentina and Telefonica de Argentina.

The unions continue to demand a 25% salary increase.  In June
2007, they conducted three 48-hour strikes and one 72-hour
strike this month, BNamericas states.

Headquartered in Buenos Aires, Argentina, Telefonica de
Argentina SA -- http://www.telefonica.com.ar/-- provides
telecommunication services, which include telephony business
both in Spain and Latin America, mobile communications
businesses, directories and guides businesses, Internet, data
and corporate services, audiovisual production and broadcasting,
broadband and Business-to-Business e-commerce activities.

                        *     *     *

As reported in the Troubled Company Reporter on Jan. 22, 2007,
Moody's Latin America changed the rating outlook to positive
from stable for Telefonica de Argentina's foreign currency
rating of B2 and for the Aa3.ar (national scale rating).  The
rating action was taken in conjunction with Moody's outlook
change to positive from stable for Argentina's B2 foreign
currency ceiling for bonds and notes on Jan. 16, 2007.
Telefonica de Argentina's foreign currency rating continues to
be constrained by Argentina's B2 ceiling.




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


ISLE OF CAPRI: Hires Virginia McDowell as President & COO
---------------------------------------------------------
Isle of Capri Casinos, Inc., has named Virginia McDowell as its
President and Chief Operating Officer, and James B. Perry as a
member of its Board of Directors.  Mr. Perry's appointment to
the Board is effective immediately, while Ms. McDowell is
expected to assume her new position on July 30, 2007.  Both
appointments are subject to regulatory approval.

Ms. McDowell's 26-year career in gaming has spanned a wide range
of disciplines and areas of expertise, including marketing,
operations, and technology.  "With significant experience in
both regional and destination markets, and her vast experience
in virtually every aspect of our business, Virginia McDowell is
exactly the right person to help lead our company as we focus on
increasing the efficiency of our operations while continuing to
stress financial discipline and targeted growth opportunities,"
said Bernard Goldstein, chairman and chief executive officer.

Mr. Goldstein continued, "Our Board of Directors unanimously
chose Virginia for the position of President and Chief Operating
Officer because she knows our business, knows our customers and
knows our markets.  Throughout her career she has consistently
exhibited the leadership and vision needed to continue the
growth and development of our Company."

Most recently, Ms. McDowell served as Executive Vice President
and Chief Information Officer of Trump Entertainment Resorts,
Inc.  Prior to joining Trump Entertainment Resorts, Ms. McDowell
spent eight years at Argosy Gaming Company in Alton, Illinois,
joining the company as Vice President of Sales and Marketing,
and ultimately holding the position of Senior Vice President of
Operations.  She began her gaming career in Atlantic City,
holding a variety of executive positions over a 16-year time
period.

"Isle of Capri has a strong base of existing properties, a
sizeable database and a variety of exciting new projects that
contribute to a growing brand portfolio.  I am very optimistic
that by building on the Company's unique "Isle Style" culture,
focusing on our operating fundamentals, continuing to develop
and implement new technology initiatives and creating exciting
new entertainment experiences for our customers, we can improve
the Company's performance and strengthen the Isle of Capri
Casinos' brands.  I look forward to joining a very talented
team" Ms. McDowell said.

Mr. Perry, one of the gaming industry's most distinguished
executives, is recognized for engineering the turnaround of
Argosy Gaming Company beginning in 1997.  During Mr. Perry's
tenure at Argosy, the company was considered an industry leader
in EBITDA margins, and was recognized by several leading
financial publications for financial stability, record growth
and creation of shareholder value.

With nearly 30 years of experience leading major gaming
operations and companies in regional and destination markets,
Mr. Perry most recently served as the President, Chief Executive
Officer and a member of the Board of Directors of Trump
Entertainment Resorts, Inc. where he oversaw the renovation and
expansion of the company's three Atlantic City properties.
Mr. Perry resigned from these positions effective July 1, 2007.

Mr. Goldstein commented, "We are pleased to welcome these two
respected and talented executives to the Isle of Capri Casinos
team at this exciting time in our history, when we have recently
brought several major projects online, and we look forward to
the significant contributions that they will make to a Company
already recognized as a leading developer, owner and operator of
regional branded gaming facilities."

Ms. McDowell resides in St. Louis, Missouri with her husband and
two children.  She is active in community and charitable
endeavors, currently serving as the Founding Board Chair and
President of Gilda's Club St. Louis, and serves as a member of
the Presidents Advisory Board of Temple University in
Philadelphia, Pennsylvania, where she earned her undergraduate
degree in communications.

Mr. Perry resides in Santa Barbara, California with his wife and
three children.

Based in Biloxi, Mississippi and founded in 1992, Isle of Capri
Casinos Inc. (Nasdaq: ISLE) -- http://www.islecorp.com/-- owns
and operates casinos in Biloxi, Lula and Natchez, Mississippi;
Lake Charles, Louisiana; Bettendorf, Davenport and Marquette,
Iowa; Kansas City and Boonville, Missouri and a casino and
harness track in Pompano Beach, Florida.  The company also
operates and has a 57% ownership interest in two casinos in
Black Hawk, Colorado.  Isle of Capri Casinos' international
gaming interests include a casino that it operates in Freeport,
Grand Bahama and a two-thirds ownership interest in casinos in
Dudley and Wolverhampton, England.

                         *     *     *

Moody's Investors Service affirmed its Ba3 Corporate Family
Rating on Isle of Capri Casinos in connection with its
implementation of the new Probability-of-Default and Loss-Given-
Default rating methodology for the Gaming, Lodging & Leisure
sector.  Moody's assigned LGD ratings to four of the company's
debts including a LGD5 rating on its 9% Sr. Sub. Notes,
suggesting debt holders will experience a 76% loss in the event
of a default.

As reported in the Troubled Company Reporter-Latin America on
June 21, 2007, Standard & Poor's Ratings Services revised its
rating outlook on Isle of Capri Casinos Inc. to negative from
stable.  Ratings on the company, including the 'BB-' corporate
credit rating, were affirmed.  Standard & Poor's also assigned
its loan and recovery ratings to Isle's proposed US$1.35 billion
senior secured credit facilities.  The loan was rated 'BB+' (two
notches higher than the 'BB-' corporate credit rating on the
company) with a recovery rating of '1', indicating the
expectation for very high (90%-100%) recovery in the event of a
payment default.




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===========


CENVEO INC: Inks Deal to Acquire Commercial Envelope
----------------------------------------------------
Cenveo Inc. has signed a definitive purchase agreement pursuant
to which Cenveo will acquire Commercial Envelope Manufacturing
Inc. of Deer Park, New York.  Commercial Envelope is one of the
largest envelope manufacturers in the United States with
approximately US$160 million in revenues.  The transaction is
projected to be completed in the third quarter and is expected
to be accretive to earnings.  The Kristel family, which founded
Commercial Envelope in 1924, will remain with Commercial
Envelope following the acquisition.  The transaction is subject
to terms and conditions negotiated by the parties.

Commercial Envelope operates five strategically-located
production facilities across the Eastern United States,
featuring some of the most technologically advanced equipment in
the industry and producing over 45,000,000 envelopes per day.
Its highly-skilled and talented workforce of approximately 700
employees is well known for their craftsmanship and has been the
recipient of numerous awards for outstanding quality.

Cenveo Chairperson and Chief Executive Officer Robert G. Burton
said, "The acquisition of Commercial Envelope will strengthen
Cenveo's operations in some significant ways.  Their world-class
operations are complementary to ours and the combination will
enhance our ability to service the direct mail marketplace.  We
believe that the combination of these two industry leaders will
result in the strongest, most efficient and most diversified
asset platform in the envelope industry that will be able to
serve all of our customers' needs. "

Ira B. Kristel, of Commercial Envelope stated, "As a leader in
the envelope market, Commercial Envelope is very proud of its
strong reputation for excellence made possible by the loyalty
and talent of our valued employees.  This combination is a
powerful, positive opportunity for us to better serve our
customers as we solidify our position as the country's premier
envelope manufacturer.  I look forward to working with the
Cenveo team, and the benefits our combined companies will
share."

Mr. Burton concluded, "We continue to execute on our plan to
make strategic acquisitions of high-quality niche companies in
growth areas of the printing industry.  The acquisition of
Commercial Envelope is strategically advantageous to Cenveo as
it adds considerable strength to our direct mail platform with
the addition of their world-class asset base.  We intend to
continue to acquire strong and respected companies like
Commercial Envelope.  I look forward to working with Steven and
Alan Kristel and their team, and a swift completion of this
transaction."

                        About Cenveo

Headquartered in Stamford, Connecticut, Cenveo, Inc., is one of
North America's leading providers of print and visual
communications, with one-stop services from design through
fulfillment.  The company's broad portfolio of services and
products include commercial printing, envelopes, labels,
packaging and business documents delivered through a network of
production, fulfillment and distribution facilities throughout
North America.  Cenveo Corp. is Cenveo Inc.'s wholly owned
subsidiary.

Cenveo acquired Cadmus Communications in a merger completed
on March 2007.  The company has operations in the US, India and
the Caribbean Rim, particularly in the Bahamas, Cuba, Jamaica,
Haiti, Dominican Republic, Puerto Rico, Bahamas, and Belize.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
April 27, 2007, Standard & Poor's Ratings Services lowered its
rating on Cenveo Corp.'s newly assumed US$125 million notes due
2014 to 'B-' from 'B'.  The rating was removed from CreditWatch,
where it was placed with negative implications on Dec. 27, 2006.
Cadmus Communications Corp., the former issuer, has merged into
Cenveo, and the notes obligation has been assumed by Cenveo.
The downgrade reflects the expiration of Cenveo's cash tender
offer for the notes, for which US$21 million has been validly
tendered.  The remainder of the notes (approximately US$104
million) will remain outstanding in Cenveo's capital structure.




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


DRESDNER RCM: Proofs of Claim Filing Is Until July 27
-----------------------------------------------------
Dresdner RCM Oriental Income Fund Ltd.'s creditors are given
until July 27, 2007, to prove their claims to Mark W.R. Smith,
Derek Lai and Darach Haughey, 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.

Dresdner RCM's shareholders agreed on July 2, 2006, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.

The liquidator can be reached at:

         Mark W.R. Smith
         Derek Lai
         Darach Haughey
         Deloitte & Touche
         Corner House, Church & Parliament Streets
         P.O. Box 1556
         Hamilton HM FX,
         Bermuda


GLOBAL CROSSING: Gets FCC Okay for ST Telemedia to Boost Stake
--------------------------------------------------------------
Global Crossing reported that the Federal Communications
Commission has approved its petition for STT Crossing Ltd, a
subsidiary of Singapore Technologies Telemedia Pte Ltd (ST
Telemedia), to increase its equity and voting interests in
Global Crossing to as much as 66.25 percent.

In connection with the establishment of the previously announced
five-year, US$350 million secured term loan facility, ST
Telemedia agreed to convert its mandatorily convertible notes
due December 2008 within 120 days of the closing of the initial
tranche of the term loan.  In connection with the conversion, ST
Telemedia will receive common stock and warrants totaling
approximately 16.58 million shares, plus US$7.5 million in cash.

                       About Global Crossing

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

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


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


COEUR D'ALENE: Gives Update on San Bartolome Works in Bolivia
-------------------------------------------------------------
Coeur d'Alene Mines Corporation disclosed that construction
workers at its San Bartolome silver project in Bolivia have
collectively surpassed the milestone of one million man-hours
without a lost time accident, while remaining on schedule and on
budget toward an anticipated January 2008 startup date.  Through
June 30, the project had posted 1,110,867 man-hours without a
lost time accident.

The construction of San Bartolome, which is expected to produce
approximately 9 million ounces of silver in its first year,
currently employs approximately 1,100 workers through its South
American Subsidiary Empresa Minera Manquiri, and its
contractors, most of whom are Bolivians.

Site preparation work is essentially complete, and concrete
foundation work is well advanced.  Construction of the leach
tanks is also well advanced, and all major contracts have been
awarded.

"One million man-hours without a lost time accident is a major
milestone for any mine, and with San Bartolome further
demonstrates Coeur's worldwide approach to mine safety which has
resulted in the safe working conditions and efficiency employed
at our new silver mine," said Dennis E. Wheeler, Chairman,
President and Chief Executive Officer of Coeur.  "San Bartolome
is not only bringing well-paying jobs to the people of Bolivia,
it is doing so in a safe and productive work environment.  We
are extremely proud of the San Bartolome team, led by Jim Duff,
all of Coeur's contractors, and the entire workforce in Bolivia
for maintaining this positive construction momentum, while
maintaining discipline over costs and schedule."

"This is the kind of safety and efficiency Coeur strives to
bring to all its projects around the world," Mr. Wheeler added.

                      About Coeur d'Alene

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

                        *     *     *

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




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


BANCO NACIONAL: Ratifies BRL1.65-Billion Loan for Foz do Chapeco
----------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social S.A. said
in a statement that it has authorized a BRL1.65-billion loan for
the construction of the Foz do Chapeco hydroelectric plant on
the border of Rio Grande do Sul and Santa Catarina.

Business News Americas relates that Banco Nacional will approve
BRL1.1 billion in direct financing to the Foz do Chapeco Energia
consortium.  The remaining BRL552 million will be granted
through "a pool of banks."

Banco Nacional told BNamericas that investments in the 855-
megawatt plant will total BRL2.2 billion.

Foz do Chapeco general director Enio Schneider commented to
BNamericas, "The rest of the investment will come from the
consortium's own capital."

According to BNamericas, the plant will start generating power
when its first turbine starts operation by August 2010.  The
plant will reach full capacity when its fourth turbine comes
online in March 2011.

Mr. Schneider told BNamericas, "We already have sold 60% of the
power to be generated by Foz do Chapeco.  The rest will probably
be sold in one of the next government auctions, maybe in the
auction for energy [delivery] in 2012."

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.


BASELL AF: Purchase Deal Cues Fitch to Put Low B Ratings
--------------------------------------------------------
Fitch Ratings has placed Netherlands-based Basell AF SCA's
ratings on Rating Watch Negative, following the company's
announcement of its definitive agreement to acquire US-based
Lyondell Chemical Company (rated 'BB-').  Basell's Short-term
Issuer Default Rating is affirmed at 'B'.

Basell's ratings are:

  -- Long-term IDR: 'BB-' on RWN
  -- Senior secured: 'BB+' on RWN
  -- Senior notes: 'B+' on RWN

This follows the announcement that Basell will acquire
Lyondell's outstanding common shares for US$48 per common share
in an all cash transaction with a total enterprise value of
approximately US$19 billion, including the assumption of debt.
Fitch expects a re-leveraging of Basell's balance sheet as
customary for sponsor-driven transactions, which is likely to
result in a downgrade of Basell's Long-term IDR by at least one
notch. Fitch expects to resolve the RWN upon the closure of the
transaction and review of the financing plan.

The transaction will create one of the world's largest chemicals
companies with combined revenues (FY06) of around USD34bn and
around 15,000 employees around the world. The transaction is
subject to regulatory approvals and the approval of Lyondell's
shareholders.  Basell expects the transaction to close within
the next several months.

Fitch will publish a separate announcement on the impact of the
proposed transaction on Lyondell's ratings.

The transaction was unanimously approved by the Boards of
Directors of Basell and Lyondell. This offer follows two recent
bids for Huntsman Corp and GE Plastics, which Basell both lost
to higher bidders (Hexion Specialty Chemicals, Inc. and SABIC,
respectively).

Headquartered in The Netherlands, Basell AF SCA --
http://www.basell.com/-- is the producer of polypropylene and
advanced polyolefins products, a leading supplier of
polyethylene and catalysts, and a global leader in the
development and licensing of polypropylene and polyethylene
processes.  The company, together with its joint ventures, has
manufacturing facilities around the world and sells products in
more than 120 countries.  With research and development
activities in Europe, North America and the Asia-Pacific region,
Basell is continuing a technological heritage that dates back to
the beginning of the polyolefins industry.  In 2006, the company
reported revenues of EUR10.5 billion and EBITDA of EUR1.1
billion.

Basell has regional offices in Belgium, Germany, the United
States, Brazil and Hong Kong, as well as sales offices in the
major markets around the globe.


COMPANHIA DE BEBIDAS: Prices BRL300 Million of Unsecured Notes
--------------------------------------------------------------
Companhia de Bebidas das Americas aka AmBev has priced the notes
to be issued by its wholly owned subsidiary, AmBev International
Finance Co. Ltd.  AmBev International will issue BRL300 million
in Brazilian Reais denominated notes with a fixed interest of
9.500% per annum and maturity date of July 24, 2017.  The
issuance is expected to close on July 24, 2007, subject to
customary closing conditions.

The notes will be unsecured and unsubordinated obligations of
AmBev International and will be fully and unconditionally
guaranteed by AmBev.  The guarantee ranks equally in right of
payment with all of AmBev's other unsecured and unsubordinated
debt obligations (except for statutorily preferred credits set
forth in Brazilian bankruptcy laws).

The notes are denominated in Brazilian Reais, but both principal
and interest will be paid in U.S. dollars at the prevailing
exchange rate at the applicable payment date.  Interest will be
paid semi-annually in arrears, starting January 24, 2008.  The
net proceeds of the offering will be used for the repayment of
short-term debts and for general corporate purposes by AmBev and
its subsidiaries.

The notes and guarantee have not been and will not be registered
under the U.S. Securities Act of 1933, as amended, any state
securities laws or the securities laws of any other jurisdiction
and will be sold only to qualified institutional buyers pursuant
to Rule 144A under the Securities Act, and outside the United
States to non-U.S. persons in reliance on Regulation S.  The
notes and guarantee may not be offered or sold in the United
States absent registration under, or an applicable exemption
from, the registration requirements of the Securities Act.

                         About AmBev

Based in Sao Paulo, Brazil, AmBev -- http://www.ambev.com.br/
-- is the largest brewer in Latin America and the fifth largest
brewer in the world.

AmBev's beer brands include Skol, Brahma and Antarctica.  AmBev
also produces and distributes soft drink brands such as Guarana
Antarctica, and has franchise agreements for Pepsi soft drinks,
Gatorade and Lipton Ice Tea.

AmBev has been present in Canada since 2004 through Labatt.
Founded in London, Ontario in 1847 and the proud brewer of more
than 60 quality beer brands, Labatt is Canada's largest brewery.

                        *     *     *

As reported in the Troubled Company Reporter on Sept. 4, 2006,
Moody's Investors Service upgraded to Ba1 from Ba2 the foreign
currency issuer rating of Companhia de Bebidas das Americas aka
AmBev to reflect the upgrade of Brazil's foreign currency
country ceiling to Ba1 from Ba2.  AmBev's global local currency
issuer rating of Baa3 and the foreign currency rating of Baa3
for its debt issues remain on review for possible upgrade.


COMPANHIA SIDERURGICA: Acquiring Minas Gerais Iron Ore Producer
---------------------------------------------------------------
Companhia Siderurgica Nacional is in the final stages of closing
a deal to buy an unnamed, medium-sized iron ore producer in
Minas Gerais, Valor Economico reports.

Business News Americas relates that Minas Gerais has been
"fertile territory for acquisitions."  Brazilian mining and
metals firm MMX recently bought AVG Mineracao and its iron ore
deposit in Serra Azul, Minas Gerais.

Companhia Siderurgica also owns the Casa de Pedra iron ore mine
in Minas Gerais.

Companhia Siderurgica is allegedly keen on buying iron ore miner
Ferteco, BNamericas states.

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

                        *     *     *

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

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


EMI GROUP: Terra Firma Extends GBP2.4 Bln. Cash Offer to July 19
----------------------------------------------------------------
Terra Firma Capital Partners Ltd.'s extended until
July 19, 2007, the time within which EMI Group Plc shareholders
can accept its GBP2.4 billion cash offer for the UK music group,
published reports say.

The proposed takeover by Maltby Limited, a private equity buyout
vehicle set up by Terra Firma Capital Partners Ltd., obtained
clearance from the European commission on July 12, 2007.

As of July 12, 2007, being the revised closing date of the
offer, Maltby received valid acceptances totalling 31,010,127
EMI shares or around 3.82% of the existing issued ordinary share
capital of EMI.

EMI's board of directors accepted the offer in May 2007 and
recommended shareholders to do the same.

                         Warner Music

Before the board accepted Terra Firma's offer, Warner Music
sweetened its bid to acquire EMI by offering to pay a break-up
fee of between GBP50 million and GBP100 million in case the
European Commission blocks its planned takeover of the U.K.
music group, Dominic White of The Telegraph related.

EMI, the world's third largest music producer, has been subject
to several takeover bids including from U.S. rival Warner Music
Group Corp. and other equity firms after it suffered losses due
to a shrinking CD market and rampant online piracy.

EMI previously rejected Warner Music's GBP2.1 billion non-
binding takeover bid on March 2, 2007, saying that the price of
260 pence per share in cash for EMI is inadequate.  According to
Mr. White of The Telegraph, EMI also cited concerns that Warner
had not offered to take any of the regulatory risk in relation
to the takeover.

Latest reports reveal that EMI shareholders are waiting to see
if Warner Music will make a counter offer for EMI after it
confirmed last month that it continues to actively consider an
offer for its UK rival, despite its bid being snubbed in favor
of an equity firm.

                       About Terra Firma

Terra Firma is a leading European private equity firm, created
in 2002 as the independent successor to the Principal Finance
Group, a division of Nomura that was created in 1994.  Terra
Firma focuses on buyouts of large, asset-rich and complex
businesses in need of operational and/or strategic change.

Since its inception in 1994, Terra Firma has invested over
EUR7 billion of equity and has completed transactions with an
aggregate transaction value of over EUR30 billion.  Terra Firma
has offices in London and Frankfurt.

                  About Warner Music Group

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

                          About EMI

Headquartered in London, United Kingdom, EMI Group PLC --
http://www.emigroup.com/-- is the world's largest independent
music company, operating directly in 50 countries and with
licensees in a further 20.  The group has operations in Brazil,
China, and Hungary.  The group employs over 6,600 people.
Revenues in 2005 were near EUR2 billion and operating profit
generated was over EUR225 million.

At March 31, 2006, EMI Group's consolidated balance sheet
revealed GBP1.817 billion in total assets, GBP2.544 billion in
total liabilities and GBP726.6 million in shareholders' deficit.

The company issued two profit warnings since January 2007.

                        *     *     *

In February 2007, Standard & Poor's Ratings Services lowered its
long-term corporate credit and senior unsecured debt ratings on
UK-based music group EMI Group PLC to 'BB-' from 'BB'.  The 'B'
short-term rating was affirmed.

At the same time, the long-term corporate credit rating and debt
ratings were put on CreditWatch with negative implications.

In January 2007, Moody's Investors Service downgraded EMI Group
plc's Corporate Family and senior debt ratings to Ba3 from Ba2.
All ratings remain under review for possible further downgrade.
Downgrade and review follow the announcement that EMI:

   (i) will incur up to GBP150 million in incremental
       restructuring costs,

  (ii) has performed below its expectations during its
       financial year-to-date,

(iii) has installed Eric Nicoli, hitherto chairman of the
       group as CEO of EMI Group and of EMI Recorded Music and
       is reviewing its balance sheet.


JBS SA: S&P Affirms B+ Long-Term Corporate Credit Rating
--------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B+' long-term
corporate credit rating on Brazil-based meat-processing company
JBS S.A. and removed the ratings from CreditWatch with negative
implications where they were placed May 29, 2007.  The outlook
is negative.

At the same time, the long-term corporate credit rating on
Greeley, Colo.-based Swift & Co. was raised to 'B+' from 'B' and
removed from CreditWatch with positive implications where they
were placed July 6, 2007.  The outlook is negative.  The ratings
on Swift are subsequently withdrawn at the company's request.

Pro forma for the transaction, about US$2.1 billion of debt is
affected.

The rating action reflects the pro-forma combined capital
structure of JBS after the completion of the Swift acquisition
on July 11, 2007, with equity inflows of approximately US$950
million and US$600 million of debt reduction at the Swift level.
The improved capital structure partially offsets our view that
JBS will face some challenges to turn around Swift's operations.

These challenges include low margins and very weak performance
of the past several years; mad cow disease in the U.S.; industry
overcapacity; the highly competitive operating environment; and
the inherent differences of the U.S. market.  S&P believes that
JBS' expertise in beef should support improvements in Swift's
North American beef operations in the intermediate to long term.
However, industry conditions remain difficult in the near term,
with limited supply of cattle for slaughtering, and the
continued closure of some foreign markets to U.S. beef exports.
JBS' strong cash position after the completion of its recent
equity offers reduces the company's exposure to the debt markets
and provides significant working capital requirements for the
combined entity.

S&P also anticipates that JBS will maintain its large capital
expenditure program in South America, which is expected to use
more than 70% of the combined company's cash flow generation in
the next two years, putting additional strain on the company's
cash flows and management team.

The negative outlook reflects S&P's expectations that JBS will
face some major challenges in turning around Swift's weak
operational performance.  The outlook also incorporates S&P's
expectation that the company will continue to report a highly
leveraged capital structure and weak cash flow generation. The
ratings could be lowered if the company's operating performance
deteriorates and it has a related effect on the company's
financial performance.  The outlook could be revised to stable
if the company delivers stronger-than-projected EBITDA margins,
reduces its leverage to more appropriate levels for its current
rating given the inherent volatility and cyclicality of the
business, and sustains stronger credit protection measures.

Headquartered in Sao Paulo, Brazil, JBS is the third largest
beef company in the world in terms of cattle slaughtering
capacity and the largest beef processor and exporter in Brazil,
Argentina and Latin America.  With operations in Brazil and
Argentina, JBS produces, prepares, packages and delivers fresh,
chilled and processed beef and beef by-products to customers
both in Brazil and abroad.

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


LYONDELL CHEMICAL: To be Acquired by Basell for US$48 Per Share
---------------------------------------------------------------
Lyondell Chemical Company has signed a definitive agreement
pursuant to which Basell will acquire its outstanding common
shares for US$48 per piece in an all cash transaction with a
total enterprise value of approximately US$19 billion, including
the assumption of debt.

The purchase price per share represents a 45% premium to
Lyondell's closing share price on May 10, 2007, the day prior to
the disclosure by Access Industries, the industrial group that
owns Basell, of its potential interest in Lyondell, and a 20%
premium to Lyondell's closing share price on July 16, 2007.  The
transaction was unanimously approved by the Boards of Directors
of Basell and Lyondell.

The transaction will create one of the sector's largest
companies.  Lyondell's three business segments:

   * ethylene, co-products and derivatives;
   * propylene oxide and related products; and
   * refining

will complement and significantly strengthen Basell's
polyolefins business.  Basell and Lyondell together would have
had combined 2006 revenues of approximately US$34 billion and
15,000 employees around the world.

Len Blavatnik, Chairman and Founder of U.S.-based Access
Industries, said: "The combination of Basell and Lyondell
creates one of the top chemical companies in the world.  This
combination further strengthens Access' long-term strategic
position in the global petrochemical industry."  Commenting on
the transaction, Volker Trautz, Chief Executive Officer of
Basell, said: "Lyondell's competitively positioned assets,
access to raw material and refining capacity are excellent
complements to Basell's diversified portfolio."

"We believe this transaction offers significant value for
Lyondell's shareholders," said Dan F. Smith, Chairman, President
and Chief Executive Officer of Lyondell.  "We are very pleased
that Basell recognizes the value and fit of our portfolio of
chemical and refining assets.  Basell and Lyondell share a
common vision for continued success, and the combination of our
companies will enhance our opportunities."

The transaction is subject to customary closing conditions,
including regulatory approvals and the approval of Lyondell
shareholders.  This transaction is expected to close within the
next several months and is not subject to financing.

                        About Basell

Basell -- http://www.basell.com/-- is the global leader in
polyolefin technology, production and marketing.  It is the
largest producer of polypropylene and advanced polyolefin
products; a leading supplier of polyethylene and catalysts, and
the industry leader in licensing polypropylene and polyethylene
processes, including providing technical services for its
proprietary technologies.  Basell, together with its joint
ventures, has manufacturing facilities in 19 countries and sells
products in more than 120 countries.  Basell is privately owned
by Access Industries.

                  About Access Industries

Access Industries -- http://www.accessindustries.com/-- is a
privately held, U.S.-based industrial group with long-term
holdings worldwide.  Access was founded in 1986 by Chairman, Len
Blavatnik, an American industrialist.  Access' industrial focus
spans three key sectors: natural resources and chemicals;
telecommunications and media; and real estate.

                      About Lyondell

Headquartered in Houston, Texas, Lyondell Chemical Company
(NYSE:LYO) -- http://www.lyondell.com/-- is North America's
third-largest independent, publicly traded chemical company.
Lyondell manufactures chemicals and plastics, a refiner of
heavy, high-sulfur crude oil and a significant producer of fuel
products. Key products include ethylene, polyethylene, styrene,
propylene, propylene oxide, gasoline, ultra low-sulfur diesel,
MTBE and ETBE.

The company also has locations in Austria, France, Italy, The
Netherlands, Belgium, Germany, Spain, United Kingdom, Brazil,
China, Japan, Taiwan, India and Singapore.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 6, 2007, Fitch Ratings expects to assign a 'BB-' rating to
Lyondell Chemical Company's US$500 million announced offering of
senior unsecured notes due 2017.  Proceeds from this offering
are expected to fully repay the existing US$500 million, 10.875%
senior subordinated notes due 2009.

Fitch also affirmed other ratings:

    -- Issuer Default Rating at 'BB-';
    -- Senior secured credit facility and term loan at 'BB+';
    -- Senior secured notes at 'BB+';
    -- Senior unsecured notes at 'BB-';
    -- Debentures at 'BB-';

As reported in the Troubled Company Reporter-Latin America on
June 4, 2007, Standard & Poor's Ratings Services assigned its
'B+' rating to the proposed Lyondell Chemical Co.'s US$500
million of unsecured notes due 2017, issued pursuant to
Lyondell's Rule 415 shelf registration.

S&P also affirmed its corporate credit rating on Lyondell
(BB-/Stable/B-1).  S&P said the outlook was stable.


LYONDELL CHEMICAL: Fitch Watches Ratings Due to Basell Deal
-----------------------------------------------------------
Fitch Ratings has placed Lyondell, Equistar and Millennium on
Rating Watch Negative following the announcement that Lyondell
has agreed to be acquired by Basell for US$12.66 billion, or
US$48 per share.  The transaction is valued at $19 billion
including the consolidated debt outstanding at Lyondell.

Fitch has placed these ratings on Rating Watch Negative:

Lyondell:

  -- Issuer Default Rating 'BB-';
  -- Senior secured credit facility and term loan 'BB+';
  -- Senior secured notes 'BB+';
  -- Senior unsecured notes 'BB-';
  -- Debentures 'BB-'.

Equistar:

  -- Issuer Default Rating B+;
  -- Senior secured credit facility 'BB+/RR1';
  -- Senior unsecured notes 'BB-/RR3'.

Millennium Chemicals Inc.'s:

  -- Issuer Default Rating (IDR) 'B+';
  -- Convertible senior unsecured debentures 'BB/RR2'.

Millennium America Inc.:

  -- Issuer Default Rating 'B+';
  -- Senior unsecured notes 'BB/RR2'.

At the same time, Fitch has affirmed and subsequently withdrawn
Millennium America's senior secured credit facility and term
loan ratings at 'BB+/RR1'. The credit facility and term loan
have been repaid and terminated during the second quarter of
2007.

For Lyondell, approximately US$5 billion of debt is covered; for
Equistar, approximately US$1.6 billion of debt is covered; and
for Millennium Chemicals, approximately US$400 million of debt
is covered by these actions.

The Rating Watch Negative follows Lyondell's announcement that
it had entered into a definitive agreement under which Basell
will acquire all the outstanding shares of Lyondell for US$48
per common share in an all cash transaction with a total
enterprise value of approximately US$19 billion, including the
assumption of debt.  Fitch expects to downgrade the ratings at
least one notch. Fitch also placed Basell's 'BB-' IDR rating on
Rating Watch Negative.  The transaction has been unanimously
approved by the Board of Directors of Basell and Lyondell, and
is expected to close during the next several months.  Also the
transaction is subject to regulatory approval and the approval
of Lyondell shareholders.

Fitch recognizes that Lyondell's senior unsecured notes due
2014, 2016 and 2017 contain tight covenants including restricted
payment limitations and change of control provisions, which the
latter allows bondholders to put the bonds to the company for
redemption of 101% of the aggregate amount outstanding.
Similarly, Equistar's senior unsecured notes due 2008 and 2011
have the same protections as well.  These notes are likely to be
repaid subsequent to the close of the transaction.  Fitch
expects to resolve the Rating Watch Negative upon closure of the
transaction and review of the resulting capital structures at
Lyondell and its subsidiaries.

Lyondell holds leading global positions in propylene oxide and
derivatives, as well as leading North American positions in
ethylene, propylene, polyethylene, aromatics, acetic acid, and
vinyl acetate monomer.  Lyondell also has substantial refining
operations located in Houston, Texas.  The company benefits from
strong technology positions and barriers to entry in its major
product lines. Lyondell owns 100% of Equistar; 70.5% directly
and 29.5% indirectly through its wholly owned subsidiary
Millennium.

Basell was formed in 2000 when its previous shareholders BASF
and Shell combined their respective polypropylene businesses
with their existing polyethylene joint venture.  Following the
LBO, the group is owned by affiliated companies of Access
Industries Group, a New York- based private equity firm.

Lyondell holds leading global positions in propylene oxide and
derivatives, as well as leading North American positions in
ethylene, propylene, polyethylene, aromatics, acetic acid, and
vinyl acetate monomer.  The company also has substantial
refining operations located in Houston, Texas.  The company
benefits from strong technology positions and high barriers to
entry in its major product lines.  Lyondell owns 100% of
Equistar; 70.5% directly and 29.5% indirectly through its wholly
owned subsidiary Millennium.  For the latest three months ending
March 31, 2007, Lyondell and its subsidiaries generated US$2.37
billion of EBITDA on US$23.3 billion in sales.

Lyondell has operations in South Korea, Brazil and the
Netherlands.


LYONDELL CHEMICAL: Basell Deal Cues Moody's to Watch Ratings
------------------------------------------------------------
Moody's Investors Service placed the ratings of Lyondell
Chemical Company, Equistar Chemical Company LP and Millennium
Chemicals Inc. (Corporate Family Ratings of Ba3) under review
for possible downgrade following the announcement that Lyondell
has agreed to be acquired by Basell AF SCA (Ba3 CFR under review
for possible downgrade) in a transaction worth roughly US$19
billion including the assumption of debt.  This transaction is
subject to regulatory review and approval by Lyondell's
shareholders.  The boards of both companies have approved the
transaction.  Moody's also affirmed Lyondell's speculative grade
liquidity rating at SGL-1.  However, the financing of this
potential transaction, could result in a change to the SGL
rating as well.  Basell remains under review for possible
downgrade as of July 17, 2007, following the announcement of its
proposed acquisition of Lyondell.

Moody's review will focus on:

   1) financing of the proposed transaction,

   2) the financial metrics of the combined company including
      projected synergies,

   3) its financial policies and the prospects for meaningful
      debt reduction over the next two to three years, and

   4) strategy for future global growth. Financing for the
      transaction has not been disclosed

On Review for Possible Downgrade:

Issuer: Lyondell Chemical Company

  -- Corporate Family Rating, currently Ba3
  -- Probability of Default Rating, currently Ba3
  -- Senior Secured Bank Credit Facility, currently Ba2
  -- Senior Secured Regular Bond/Debenture, currently Ba2
  -- Senior Unsecured Medium-Term Note Program, currently B1
  -- Senior Unsecured Regular Bond/Debenture, currently B1

Issuer: Equistar Chemicals, LP

  -- Corporate Family Rating, currently Ba3
  -- Probability of Default Rating, currently Ba3
  -- Senior Unsecured Regular Bond/Debenture, B1
  -- Issuer: Millennium America Inc.
  -- Senior Unsecured Regular Bond/Debenture, currently B1

Issuer: Millennium Chemicals Inc.

  -- Probability of Default Rating, currently Ba3
  -- Corporate Family Rating, currently Ba3
  -- Senior Unsecured Conv./Exch. Bond/Debenture, currently B1

Headquartered in Houston, Texas, Lyondell Chemical Company
(NYSE:LYO) -- http://www.lyondell.com/-- is North America's
third-largest independent, publicly traded chemical company.
Lyondell manufactures chemicals and plastics, a refiner of
heavy, high-sulfur crude oil and a significant producer of fuel
products. Key products include ethylene, polyethylene, styrene,
propylene, propylene oxide, gasoline, ultra low-sulfur diesel,
MTBE and ETBE.

The company also has locations in Austria, France, Italy, The
Netherlands, Belgium, Germany, Spain, United Kingdom, Brazil,
China, Japan, Taiwan, India and Singapore.


LYONDELL CHEMICAL: Basell Deal Cues S&P to Watch Ratings
--------------------------------------------------------
Standard & Poor's Ratings Services placed its 'BB-' corporate
credit ratings on U.S.-based Lyondell Chemical Co. and Equistar
Chemicals L.P., its 'B+' rating on Millennium Chemicals Inc.,
and ratings on Lyondell's other related entities on CreditWatch
with negative implications, in connection with the planned
acquisition by Basell AF S.C.A.

The 'BB-' long-term corporate credit rating on Luxembourg-based
Basell AF SCA and the ratings on related entities remain on
CreditWatch with negative implications, where they were placed
on June 26, 2007.

"The CreditWatch listings reflect the definitive agreement under
which Basell plans to acquire Lyondell Chemical Co. for a total
enterprise value of about US$19 billion in an all-cash
transaction paying US$48 per common share," said S&P's credit
analyst Tobias Mock.  The transaction is subject to regulatory
approvals and the approval of Lyondell shareholders.

S&P expects Basell to finance the purchase largely with debt,
which will result in a very aggressive capital structure with an
estimated debt to EBITDA of about five times.  S&P's expects
only moderate implications for Basell's business risk profile
due to an improved product mix and better diversification, while
the exposure to the petrochemical cycle will remain high.
Therefore, the volatility of cash flows is expected to remain
meaningful depending upon the balance of supply and demand for
key petrochemical products, raw material cost trends, and
overall economic conditions.

"We will resolve the CreditWatch placements after meeting with
management to evaluate in detail the financial policies and
strategy for the combined company and the impact of such a
combination on the business and financial risk profiles," said
Mr. Mock.

Lyondell holds leading global positions in propylene oxide and
derivatives, as well as leading North American positions in
ethylene, propylene, polyethylene, aromatics, acetic acid, and
vinyl acetate monomer.  The company also has substantial
refining operations located in Houston, Tex.  The company
benefits from strong technology positions and high barriers to
entry in its major product lines.  Lyondell owns 100% of
Equistar; 70.5% directly and 29.5% indirectly through its wholly
owned subsidiary Millennium.  For the latest three months ending
March 31, 2007, Lyondell and its subsidiaries generated US$2.37
billion of EBITDA on US$23.3 billion in sales.

Lyondell has operations in South Korea, Brazil and the
Netherlands.


MILLENNIUM CHEMICALS: Fitch Places Ratings on Negative Watch
------------------------------------------------------------
Fitch Ratings has placed Lyondell, Equistar and Millennium on
Rating Watch Negative following the announcement that Lyondell
has agreed to be acquired by Basell for US$12.66 billion, or
US$48 per share.  The transaction is valued at US$19 billion
including the consolidated debt outstanding at Lyondell.

Fitch has placed these ratings on Rating Watch Negative:

Lyondell:

  -- Issuer Default Rating 'BB-';
  -- Senior secured credit facility and term loan 'BB+';
  -- Senior secured notes 'BB+';
  -- Senior unsecured notes 'BB-';
  -- Debentures 'BB-'.

Equistar:

  -- Issuer Default Rating B+;
  -- Senior secured credit facility 'BB+/RR1';
  -- Senior unsecured notes 'BB-/RR3'.

Millennium Chemicals Inc.'s:

  -- Issuer Default Rating 'B+';
  -- Convertible senior unsecured debentures 'BB/RR2'.

Millennium America Inc.:

  -- Issuer Default Rating 'B+';
  -- Senior unsecured notes 'BB/RR2'.

At the same time, Fitch has affirmed and subsequently withdrawn
Millennium America's senior secured credit facility and term
loan ratings at 'BB+/RR1'.  The credit facility and term loan
have been repaid and terminated during the second quarter of
2007.

For Lyondell, approximately US$5 billion of debt is covered; for
Equistar, approximately US$1.6 billion of debt is covered; and
for Millennium Chemicals, approximately US$400 million of debt
is covered by these actions.

The Rating Watch Negative follows Lyondell's announcement that
it had entered into a definitive agreement under which Basell
will acquire all the outstanding shares of Lyondell for US$48
per common share in an all cash transaction with a total
enterprise value of approximately $19 billion, including the
assumption of debt.  Fitch expects to downgrade the ratings at
least one notch.  Fitch also placed Basell's 'BB-' IDR rating on
Rating Watch Negative.  The transaction has been unanimously
approved by the Board of Directors of Basell and Lyondell, and
is expected to close during the next several months.  Also the
transaction is subject to regulatory approval and the approval
of Lyondell shareholders.

Fitch recognizes that Lyondell's senior unsecured notes due
2014, 2016 and 2017 contain tight covenants including restricted
payment limitations and change of control provisions, which the
latter allows bondholders to put the bonds to the company for
redemption of 101% of the aggregate amount outstanding.
Similarly, Equistar's senior unsecured notes due 2008 and 2011
have the same protections as well.  These notes are likely to be
repaid subsequent to the close of the transaction.  Fitch
expects to resolve the Rating Watch Negative upon closure of the
transaction and review of the resulting capital structures at
Lyondell and its subsidiaries.

Lyondell holds leading global positions in propylene oxide and
derivatives, as well as leading North American positions in
ethylene, propylene, polyethylene, aromatics, acetic acid, and
vinyl acetate monomer.  Lyondell also has substantial refining
operations located in Houston, Texas.  The company benefits from
strong technology positions and barriers to entry in its major
product lines.  Lyondell owns 100% of Equistar; 70.5% directly
and 29.5% indirectly through its wholly owned subsidiary
Millennium.

Basell was formed in 2000 when its previous shareholders BASF
and Shell combined their respective polypropylene businesses
with their existing polyethylene joint venture.  Following the
LBO, the group is owned by affiliated companies of Access
Industries Group, a New York- based private equity firm.

Millennium Chemicals Inc. is an international chemical company
that provides a range of commodity, industrial, performance and
specialty chemicals.  The Company generates revenue from export
sales (sales from within the United States to foreign
customers), as well as revenue from those of its operations that
are conducted outside the United States.  The company also owns
a 29.5% interest in Equistar, a partnership between the company
and Lyondell Chemical Company.  The Company's principal
operations are grouped into three business segments: Titanium
Dioxide and Related Products, Acetyls and Specialty Chemicals.
The company has operations in Brazil and United Kingdom.


MILLENNIUM CHEMICALS: Moody's Places Ratings Under Review
---------------------------------------------------------
Moody's Investors Service placed the ratings of Millennium
Chemicals Inc., Equistar Chemical Company LP and Lyondell
Chemical Company (Corporate Family Ratings of Ba3) under review
for possible downgrade following the announcement that Lyondell
has agreed to be acquired by Basell AF SCA (Ba3 CFR under review
for possible downgrade) in a transaction worth roughly US$19
billion including the assumption of debt.  This transaction is
subject to regulatory review and approval by Lyondell's
shareholders.  The boards of both companies have approved the
transaction.  Moody's also affirmed Lyondell's speculative grade
liquidity rating at SGL-1.  However, the financing of this
potential transaction, could result in a change to the SGL
rating as well.  Basell remains under review for possible
downgrade as of July 17, 2007, following the announcement of its
proposed acquisition of Lyondell.

Moody's review will focus on:

   1) financing of the proposed transaction,

   2) the financial metrics of the combined company including
      projected synergies,

   3) its financial policies and the prospects for meaningful
      debt reduction over the next two to three years, and

   4) strategy for future global growth. Financing for the
      transaction has not been disclosed

On Review for Possible Downgrade:

Issuer: Millennium America Inc.

  -- Senior Unsecured Regular Bond/Debenture, currently B1

Issuer: Millennium Chemicals Inc.

  -- Probability of Default Rating, currently Ba3
  -- Corporate Family Rating, currently Ba3
  -- Senior Unsecured Conv./Exch. Bond/Debenture, currently B1

Issuer: Equistar Chemicals, LP

  -- Corporate Family Rating, currently Ba3
  -- Probability of Default Rating, currently Ba3
  -- Senior Unsecured Regular Bond/Debenture, B1

Issuer: Lyondell Chemical Company

  -- Corporate Family Rating, currently Ba3
  -- Probability of Default Rating, currently Ba3
  -- Senior Secured Bank Credit Facility, currently Ba2
  -- Senior Secured Regular Bond/Debenture, currently Ba2
  -- Senior Unsecured Medium-Term Note Program, currently B1
  -- Senior Unsecured Regular Bond/Debenture, currently B1

Millennium Chemicals Inc. is an international chemical company
that provides a range of commodity, industrial, performance and
specialty chemicals.  The Company generates revenue from export
sales (sales from within the United States to foreign
customers), as well as revenue from those of its operations that
are conducted outside the United States.  The Company also owns
a 29.5% interest in Equistar, a partnership between the Company
and Lyondell Chemical Company (Lyondell). The Company's
principal operations are grouped into three business segments:
Titanium Dioxide and Related Products, Acetyls and Specialty
Chemicals.  The company has operations in Brazil and United
Kingdom.


PETROLEO BRASILEIRO: Awards Two Contracts to Siemens' Unit
----------------------------------------------------------
Brazilian state-run oil firm Petroleo Brasileiro SA has awarded
German industrial group Siemens' Power Generation unit two
contracts for EUR75 million, Siemens said in a statement.

Business News Americas relates that under one of the contracts,
Siemens will sell Petroleo Brasileiro 17 compressor trains.

Siemens told BNamericas that 11 of the trains will go to
Transportadora Gasene, which Petroleo Brasileiro created for the
construction of a gas pipeline from Brazil's southeast to the
northeast region.  Six of the trains will be sent to Petroleo
Brasileiro's gas treatment plant at Cacimbas, Espirito Santo.

"The 17 compressor trains will be pre-assembled" in Siemens'
Houston facility, BNamericas states, citing Siemens.

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: Inks Engineering Support Contract with MCS
---------------------------------------------------------------
Brazilian state-owned oil firm Petroleo Brasileiro SA has signed
a two-year contract with Irish subsea engineering company MCS
for engineering support, according to a statement by MCS.

Business News Americas relates that "MCS will be responsible for
pipeline engineering support services" for Petroleo Brasileiro's
installation and construction unit.

Petroleo Brasileiro "will use MCS' PipeLay software, which helps
engineers analyze offshore pipeline installation," BNamericas
states.

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

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

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

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

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


PETROLEO BRASILEIRO: Oil Production Rises 8.6% in June
------------------------------------------------------
Petroleo Brasileiro SA aka Petrobras reported that in June 2007,
oil production has averaged 1,827,392 barrels per day, 8.6% over
a year ago, i.e., a 145,000 bpd rise.  Compared to May 2007, the
increase was 66,000 bpd.

These factors played an important role in June's production
surge:

   a) The compression system on platform P-34, in the Jubarte
      field, in the Campos Basin, went online;

   b) Production was kicked-off at the following fields:

         -- On May 28, well GLF-10, interconnected to FPSO-
            Capixaba, located in the Golfinho field, in the
            Espírito Santo Basin;

         -- On June 20, well ESP-36, interconnected to FPSO-
            Cidade do Rio de Janeiro, in the Espardate field, in
            the Campos Basin;

         -- On June 27, well MLS-79, interconnected to platform
            P-37, in the Marlim field, in the Campos Basin;

   c) Increased operating efficiency at all Petrobras
      Exploration & Production area Business Units.

In Brazil, oil and natural gas production has averaged 2,970,872
barrels of oil equivalent per day (boe/day), 6.9% over a year
ago and 3.6% more than the previous month.

Added to the production of the fields located abroad, the
company's total production volume averaged 2,342,928 barrels of
oil equivalent/day, a 6.3% increase over a year ago.

The Brazilian natural gas production topped-out at 43,003,000
cubic meters per day, 2.9% more than last May, when the average
was 41,800,000 cubic meters per day.

Total production (oil & gas) in the eight countries where
Petrobras has assets in operation was 245,056 barrels, nearly
the same as the previous month's mark (245,176 barrels).

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.


POLYPORE INT'L: Completes Offering of 10-1/2% Sr. Discount Notes
----------------------------------------------------------------
Polypore International Inc. completed its tender offer for a
portion of its 10-1/2% senior discount notes due 2012, which
expired on July 13, 2007, at 5 p.m., New York City time.

The tender offer was made pursuant to an offer to purchase and
consent solicitation statement dated June 15, 2007.  As of the
expiration time, US$299,480,000 aggregate principal amount at
maturity of notes were tendered, representing about 99.83% of
the aggregate principal amount at maturity outstanding.

The settlement date for notes tendered in the tender offer on or
prior to the expiration time is expected to be today,
July 16, 2007.  The company will pay US$293,215,824 in the
aggregate to purchase the notes tendered in the tender offer,
US$289,215,824 of which the company paid on July 3, 2007, to
holders who tendered prior to a June 28, 2007, consent deadline.

The complete terms and conditions of the tender offer is set
forth in the offer to purchase that has been sent to holders of
the notes.  Copies of the offer to purchase and related
documents may be obtained from the information agent for the
tender offer, Global Bondholder Services Corporation, at (212)
430-3774 and (866) 807-2200 (toll-free).

J.P. Morgan Securities Inc. acted as the dealer manager and
solicitation agent for the tender offer and consent
solicitation.  Questions regarding the tender offer and the
consent solicitation may be directed to J.P. Morgan Securities
Inc. at (212) 270-1477 (call collect).

                About Polypore International

Headquartered in Charlotte, North Carolina, Polypore
International Inc., is develops, manufactures and markets
specialized polymer-based membranes used in separation and
filtration processes.  The company is managed under two business
segments.  The energy storage segment, which currently
represents approximately two-thirds of total revenues, produces
separators for lead-acid and lithium batteries.  The separations
media segment, which currently represents approximately one-
third of total revenues, produces membranes used in various
health care and industrial applications.  The company has
operations in Australia, Germany and Brazil.

                        *     *     *

As reported in the Troubled Company Reporter on May 11, 2007,
Moody's Investors Service assigned Ba3 ratings to Polypore
Inc.'s new senior secured bank credit facilities.

In a related action, Moody's affirmed the B3 Corporate Family
and Probability of Default Ratings of Polypore's ultimate
parent, Polypore International, Inc., and affirmed the ratings
of Polypore Inc.'s senior subordinated notes at Caa1.  Moody's
said the outlook was positive.


POLYPORE INTERNATIONAL: S&P Revises Outlook to Positive
-------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on
Charlotte, N.C.-based Polypore International Inc. and its
subsidiary Polypore Inc. to positive from stable.  At the same
time, S&P affirmed its ratings on both companies, including the
'B' corporate credit rating.

"The outlook revision reflects the completion of a US$285
million IPO, proceeds of which have been applied to debt
reduction, and the resulting improvement in credit protection
measures," said S&P's credit analyst Gregoire Buet.

The ratings continue to reflect Polypore's highly leveraged
financial risk profile, characterized by high, though reduced,
debt levels and weak credit metrics.  The company manufactures
microporous membranes for use in energy storage and separations
applications.

Polypore derives about 70% of revenues from separators for lead-
acid batteries used in transportation and industrial
applications as well as for disposable and rechargeable lithium
batteries.  The lead-acid market tends to be mature and stable,
although growth opportunities exist in emerging markets.  The
lithium business benefits from strong growth prospects, but can
be volatile.  Polypore's other business includes filtration
membranes used by makers of health-care, food and beverage, and
industrial separations equipment.

Headquartered in Charlotte, North Carolina, Polypore
International Inc., is develops, manufactures and markets
specialized polymer-based membranes used in separation and
filtration processes.  The company is managed under two business
segments.  The energy storage segment, which currently
represents approximately two-thirds of total revenues, produces
separators for lead-acid and lithium batteries.  The separations
media segment, which currently represents approximately one-
third of total revenues, produces membranes used in various
health care and industrial applications.  The company has
operations in Australia, Germany and Brazil.


SANYO ELECTRIC: Plant Escapes Damage from 6.8 Magnitude Quake
-------------------------------------------------------------
Sanyo Electric Co., Ltd., is among the companies who have shut
down for repairs and safety inspections after a 6.8 magnitude
earthquake hit Japan, reports Reuters.

According to the report, a Sanyo spokesman said that the company
plans to resume operations at its chip factory in Ojiya City as
early as Tuesday.

Reportedly, Sanyo had to stop production lines and evacuate
employees at its facility after the quake, but found no major
damage to its equipment.

Headquartered in Osaka, Japan, Sanyo Electric Co., Ltd. --
http://www.sanyo.com/-- is one of the world's leading
manufacturers of consumer electronics products.  The company has
global operations in Brazil, Germany, India, Ireland, Spain, the
United States and the United Kingdom, among others.

                        *     *     *

In March 2007, Fitch Ratings placed SANYO Electric Co. Ltd.'s
BB+ long-term foreign and local currency issuer default and
senior unsecured ratings on rating watch negative.

On May 23, 2006, Standard & Poor's Ratings Services affirmed its
negative BB long-term corporate credit and BB+ senior unsecured
debt ratings on SANYO Electric Co. Ltd.  At the same time, the
ratings were removed from CreditWatch where they were first
placed with negative implications on Sept. 28, 2005.


SOLECTRON CORP: Bags Parata Systems APM Manufacturing Contract
--------------------------------------------------------------
Solectron Corporation disclosed that retail pharmacy automation
leader Parata Systems, LLC has awarded the company a contract to
manufacture Parata APM(TM) (Automated Product Machine).
Solectron's Creedmoor, N.C.-based facility will manufacture the
system.

Parata APM gives consumers a convenient, self-service option for
picking up refill prescriptions, in some cases even when the
pharmacy is closed. Installed at the pharmacy counter, Parata
APM holds 448 prescriptions.  Only Parata APM can be accessed
from the backside to offer the additional option of automating
will-call for the pharmacy staff.

"The convenience and access of self-service is driving a
proliferation of kiosks across many retail segments," Robert
Spignesi, executive vice president and General Manager, Parata
Systems explains.  "We partnered with Solectron for the
company's ability to support our rapid growth plans.  The
company's expertise in manufacturing electro-mechanical, build-
to-order self-service systems, as well as rapid production and
delivery, made Solectron an ideal partner."

Today, kiosks are ubiquitous in industries including airlines,
restaurants, photo finishing and DVD movie rental.  Prescription
drug delivery simply represents the next frontier in this rapid
expansion.

"Self-service automation is quickly transitioning from a value-
add convenience to an expectation for conducting business in
today's high-speed, broad-access retail environment," said Doug
Britt, executive vice president, Sales and Account Management,
Solectron.  "Parata's automation leadership makes it natural to
bring this technology to a retail pharmacy. Solectron stands
ready to support Parata's strategy with its experience in self-
service automation design and manufacturing across banking,
point-of-sale, entertainment and digital media segments.  We
look forward to collaborating closely with Parata on this
exciting venture."

                    About Parata Systems

Founded in 2001, Durham, N.C.-based Parata System --
http://www.parata.com/-- offers technologies to enhance safety
and convenience in retail pharmacy.  Its products include Parata
RDS (Robotic Dispensing System), which automates prescription
dispensing with high speed and 100 percent accuracy for drug and
dosage; Parata APM, which offers consumers convenient access to
their refill prescriptions; and Parata PACMED, which improves
safety and shortens delivery time in compliance-driven
healthcare settings.

                      About Solectron

Headquartered in Milpitas, California, Solectron Corp.
(NYSE: SLR) -- http://www.solectron.com/-- provides a full
range of worldwide manufacturing and integrated supply chain
services to the world's premier high-tech electronics companies.
Solectron's offerings include new-product design and
introduction services, materials management, product
manufacturing, and product warranty and end-of-life support.
The company operates in more than 20 countries on five
continents including France, Malaysia, and Brazil, among others.
It had sales from continuing operations of US$10.6 billion in
fiscal 2006.

                        *     *     *

As reported in the Troubled Company Reporter on Dec. 14, 2006,
Standard & Poor's Ratings Services raised its corporate credit
and senior unsecured ratings on Milpitas, California-based
Solectron Corp. to 'BB-' from 'B+', and its subordinated debt
rating to 'B' from 'B-'.  S&P said the outlook is stable.

On May 9, 2007, Fitch Ratings affirmed Solectron Corporation's
ratings as:

    -- Issuer Default Rating at 'BB-';
    -- Senior secured bank facility at 'BB+';
    -- Senior unsecured debt at 'BB-'; and
    -- Subordinated debt at 'B+'.




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


ANTHRACITE BALANCED: Proofs of Claim Filing Is Until Aug. 9
------------------------------------------------------------
Anthracite Balanced Co.'s creditors are given until
Aug. 9, 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 shareholders agreed on June 20, 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 Aug. 9
---------------------------------------------------------------
Anthracite Balanced Co. will hold its final shareholders meeting
on Aug. 9, 2007, at 10:00 a.m.:

           1185 Avenue of the Americas
           New York, New York 10036
           USA

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


ASAP FUNDING: Proofs of Claim Filing Deadline Is Aug. 9
-------------------------------------------------------
Asap Funding Ltd.'s creditors are given until Aug. 9, 2007, to
prove their claims to Chris Watler and Richard Gordon, the
company's liquidators, or be excluded from receiving any
distribution or payment.

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

Asap Funding'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 liquidator can be reached at:

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


ASIAN FUNDING: Proofs of Claim Filing Is Until Aug. 9
-----------------------------------------------------
Asian Funding For Tags creditors are given until Aug. 9, 2007,
to prove their claims to Hugh Thompson and Richard Gordon, the
company's liquidators, or be excluded from receiving any
distribution or payment.

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

Asian Funding'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 liquidator can be reached at:

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


AS ASSIST: Will Hold Final Shareholders Meeting on Aug. 10
----------------------------------------------------------
AS Assist Holdings Inc. will hold its final shareholders meeting
on Aug. 10, 2007, at 9:30 a.m., at the office of the company.

These agendas will be taken during the meeting:

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

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

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

The liquidators can be reached at:

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


ASAP CURRENCY: Proofs of Claim Must be Filed by Aug. 9
------------------------------------------------------
Asap Currency Fund.'s creditors are given until Aug. 9, 2007, to
prove their claims to Joshua Grant and Jan Neveril, the
company's liquidators, or be excluded from receiving any
distribution or payment.

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

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

The liquidator can be reached at:

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


ASPECT TRADING: Proofs of Claim Filing Is Until Aug. 9
------------------------------------------------------
Aspect Trading Fund's creditors are given until Aug. 9, 2007, to
prove their claims to Richard Gordon 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.

Aspect Trading'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:

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


BANK OF INDIA: Raises INR400 Crore from Perpetual Bond Issue
------------------------------------------------------------
Bank of India raised INR400 crore from selling perpetual bonds,
The Financial Express reports.

As reported by the Troubled Company Reporter-Asia Pacific
yesterday, the bank wanted to raise Tier-I and Tier-II capital
to the extent of INR1,995 crore by issuing innovative perpetual
debt instruments and Upper Tier-II Bonds.

The Reserve Bank of India last year permitted banks to raise
funds through the sale of perpetual debt instruments and other
securities that qualify as subordinated debt, The Financial
Express noted.

In a regulatory filing with the Bombay Stock Exchange, the bank
said its board of directors will meet on July 25, 2007, to
consider and approve, its reviewed financial results for the
quarter ended June 30, 2007.

Headquartered in Mumbai, India, Bank of India --
http://www.bankofindia.com-- 2628 branches in India spread over
all states/ union territories, including 93 specialized
branches.  The bank provides a range of financial products and
services, including numerous credit schemes, deposit schemes,
cash management services, credit/debit cards, deposit vaults and
corporate bonds. It also extends finance to small and medium
enterprises and small-scale industries. It provides a variety of
loans, such as mortgage loans, educational loans, auto finance
loans, holiday loans, personal loans and home loans. The bank
offers Internet banking services for both the retail and
corporate clients.

The bank operations in the Cayman Islands, China, the Channel
Islands, France, Hong Kong, Indonesia, Japan, Kenya, Singapore,
the United Kingdom, the United States, and Vietnam.

                         *     *      *

Standard & Poor's Ratings Services assigned on March 26, 2007,
its 'BB' issue rating to the bank's Hybrid Tier I notes to be
issued by India's Bank of India (BOI; BBB-/Stable/A-3), acting
through its Jersey branch.  These notes are being issued under
the bank's US$1 billion medium-term notes program.


CHESHIRE FINANCE: Proofs of Claim Must be Filed by Aug. 9
---------------------------------------------------------
Cheshire Finance Ltd.'s creditors are given until Aug. 9, 2007,
to prove their claims to Hugh Thompson 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.

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

The liquidators can be reached at:

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


DRAGON MBS: Proofs of Claim Filing Deadline Is Aug. 9
-----------------------------------------------------
Dragon MBS Ltd.'s creditors are given until Aug. 9, 2007, to
prove their claims to Guy Major and Richard Gordon, the
company's liquidators, or be excluded from receiving any
distribution or payment.

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

Dragon MBS 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:

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


GREENSTREAM MF: Proofs of Claim Must be Filed by Aug. 9
-------------------------------------------------------
Greenstream MF Ltd.'s creditors are given until Aug. 9, 2007, to
prove their claims to dms Corporate Services Ltd., the company's
liquidator, or be excluded from receiving any distribution or
payment.

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

Greenstream MF'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 liquidator can be reached at:

        DMS Corporate Services Ltd.
        Attention: Jenny Suto
        dms Corporate Services Ltd.
        Ansbacher House
        P.O. Box 1344
        Grand Cayman KY1-1208
        Cayman Islands
        Tel: (345) 946 7665
        Fax: (345) 946 7666


H3 GLOBAL: Sets Final Shareholders Meeting for Aug. 10
------------------------------------------------------
H3 Global Advisors Ltd. will hold its final shareholders meeting
on Aug. 10, 2007, at 10:30 a.m., at:

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

These agendas will be taken during the meeting:

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

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

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

The liquidator can be reached at:

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


H3 GLOBAL: Proofs of Claim Filing Is Until Aug. 10
--------------------------------------------------
H3 Global advisors creditors are given until Aug. 10, 2007, to
prove their claims to Q&H Nominees Ltd., the company's
liquidator, or be excluded from receiving any distribution or
payment.

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

H3 Global's shareholders agreed on June 15, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidator can be reached at:

        Q&H Nominees Ltd.
        c/o P.O. Box 1348
        Grand Cayman KY1-1108
        Cayman Islands
        Tel: (+1) 345 949 4123
        Fax: (+1) 345 949 4647


HMTF-AMI: Proofs of Claim Must be Filed by Aug. 10
--------------------------------------------------
HMTF-AMI (Sp) Ltd.'s creditors are given until Aug. 10, 2007, to
prove their claims to David W. Knickel, 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.

HMTF-AMI's shareholders agreed on June 26, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidator can be reached at:

        David W. Knickel
        c/o Stuarts
        P.O. Box 2510
        George Town, Cayman Financial Centre
        36A Dr. Roy's Drive, George Town
        Grand Cayman
        Cayman Islands


IVY ENHANCED: Will Hold Final Shareholders Meeting on Aug. 10
-------------------------------------------------------------
Ivy Enhanced Alpha Feeder Fund Ltd. will hold its final
shareholders meeting on Aug. 10, 2007, at 12:30 p.m., at the
office of the company.

These agendas will be taken during the meeting:

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

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

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

The liquidators can be reached at:

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


HFT REAL: Proofs of Claim Filing Ends on Aug. 9
-----------------------------------------------
HFT Real Estate CDO 2006-III Ltd.'s creditors are given until
Aug. 9, 2007, to prove their claims to Chris Marett and Richard
Gordon, the company's liquidators, or be excluded from receiving
any distribution or payment.

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

HFT Real's shareholders agreed on June 27, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidator can be reached at:

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


MORGAN STANLEY: Proofs of Claim Must be Filed by Aug. 9
-------------------------------------------------------
Morgan Stanley Alternatives Managed Futures Ltd.'s creditors are
given until Aug. 9, 2007, to prove their claims to Dwight Dube
and Richard Gordon, the company's liquidators, or be excluded
from receiving any distribution or payment.

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

Morgan Stanley's shareholders agreed on June 27, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

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


NFA (CAYMAN): Sets Final Shareholders Meeting for Aug. 9
--------------------------------------------------------
NFA (Cayman) Ltd. will hold its final shareholders meeting on
Aug. 9, 2007, at:

          Queensgate House
          George Town, Grand Cayman
          Cayman Islands

These agendas will be taken during the meeting:

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

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

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

The liquidator can be reached at:

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


OAM FINANCE: Proofs of Claim Filing Deadline Is Aug. 9
------------------------------------------------------
OAM Finance Fund Ltd.'s creditors are given until Aug. 9, 2007,
to prove their claims to Stuart K. Sybersma and Ian A. N. Wight,
the company's liquidators, or be excluded from receiving any
distribution or payment.

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

OAM Finance'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 liquidator can be reached at:

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


OFFSHORE CRUDE: Proofs of Claim Must be Filed by Aug. 9
-------------------------------------------------------
Offshore Crude Purchasing Ltd.'s creditors are given until
Aug. 9, 2007, to prove their claims to George C. Barry, 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.

Offshore Crude'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 liquidator can be reached at:

        George C. Barry
        1185 Avenue of the Americas
        New York, N.Y. 10036
        USA


OFFSHORE CRUDE: Sets Final Shareholders Meeting for Aug. 9
----------------------------------------------------------
Offshore Crude Purchasing Ltd. will hold its final shareholders
meeting on Aug. 9, 2007, at:

           1185 Avenue of the Americas
           New York, New York 10036
           USA

These agendas will be taken during the meeting:

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

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

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

The liquidator can be reached at:

           George C. Barry
           1185 Avenue of the Americas
           New York, N.Y. 10036
           USA


OWWS LIMITED: Proofs of Claim Filing Ends on Aug. 9
---------------------------------------------------
OWWS Ltd.'s creditors are given until Aug. 9, 2007, to prove
their claims to Law Yui Lun and Wong Man Chung, Francis, 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.

OWWS Ltd.'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:

        Law Yui Lun
        Wong Man Chung, Francis
        Joannah Small of Maples and Calder
        P.O. Box 309
        George Town, Grand Cayman
        Cayman Islands




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


ARMOR HOLDINGS: Prices Offering of 8.25% Senior Sub. Notes
----------------------------------------------------------
Armor Holdings Inc. has priced its previously announced tender
offer to purchase for cash all of its outstanding 8.25% Senior
Subordinated Notes due 2013, CUSIP No. 042260AB5, which, along
with the related consent solicitation, are being conducted
pursuant to the terms of and subject to the conditions set forth
in the Offer to Purchase and Consent Solicitation Statement
dated July 2, 2007.

The total consideration for each US$1,000 principal amount of
the Notes, which will be payable in respect of the Notes that
are accepted for payment and that were validly tendered on or
prior to 5:00 p.m., New York City time, on July 16, 2007, will
be US$1,066.53 per US$1,000 principal amount of the Notes, based
on an assumed payment date of July 31, 2007, which is the
business day following the Expiration Date of the Offer.  The
Tender Offer Consideration is the Total Consideration minus a
US$20.00 consent payment.  The Total Consideration was
determined as of 2:00 p.m., New York City time, on
July 16, 2007, and is equal to, for each US$1,000 principal
amount of Notes, (i) the sum of the present value on the Payment
Date of (a) $1,041.25 (the amount payable on Aug. 15, 2008,
which is the date the Notes first become callable, plus (b) the
interest that would be payable on, or accrue from,
Feb. 15, 2007, the most recent interest payment date, until the
First Call Date, in each case, determined on the basis of a
yield to the First Call Date equal to the sum of the bid-side
yield on the 4.125% U.S. Treasury Note due Aug. 15, 2008, which
UBS Investment Bank calculated as 4.983% as of 2:00 p.m., New
York City time, on July 16, 2007, in accordance with the Offer
to Purchase, plus (y) a fixed spread of 50 basis points, minus
(ii) accrued and unpaid interest from February 15, 2007 to, but
not including, the Payment Date.  The Consent Payment of
US$20.00 per US$1,000 principal amount of Notes is included in
the calculation of the Total Consideration and is not in
addition to the Total Consideration.

In addition to the Total Consideration, such tendering holders
will receive accrued and unpaid interest up to, but not
including, the Payment Date with respect to Notes validly
tendered and not validly withdrawn prior to the Consent Payment
Deadline pursuant to the Offer.

The Offer shall expire at 12:00 midnight, New York City time on
July 30, 2007, unless extended or earlier terminated.
Holders who validly tender their Notes after the Consent Payment
Deadline and on or prior to the Expiration Date will receive
only the Tender Offer Consideration, plus accrued and unpaid
interest up to, but not including, the Payment Date.

As of the Consent Payment Deadline, Armor had received tenders
of Notes and deliveries of related consents from holders of
approximately 99.83% of the principal amount of the outstanding
Notes.  As a result of obtaining the requisite consents, Armor
will execute and deliver a supplemental indenture setting forth
the amendments to the indenture governing the Notes, which will
eliminate substantially all restrictive covenants and certain
event of default provisions in the indenture, as detailed in the
Offer to Purchase.  The supplemental indenture provides that the
amendments to the indenture will become operative only on the
payment date for the tendered Notes accepted by Armor for
purchase pursuant to the Offer.

Armor's obligation to accept for purchase and pay for the Notes
validly tendered and consents validly delivered, and not validly
withdrawn or revoked, pursuant to the Offer is subject to and
conditioned upon the satisfaction of or, where applicable,
Armor's waiver of, certain conditions including (1) the
consummation of the proposed merger of Jaguar Acquisition
Sub Inc., a Delaware corporation and a wholly-owned subsidiary
of BAE Systems, Inc., with and into Armor pursuant to an
Agreement and Plan of Merger among Armor, BAE Systems, Inc. and
Merger Sub dated as of May 7, 2007; and (2) certain other
general conditions, each as described in more detail in the
Offer to Purchase.

Requests for documents may be directed to the Information Agent
for the Offer and Solicitation, Global Bondholder Services
Corporation, by telephone at (866) 804-2200 (toll free) or (212)
430-3774, or in writing at 65 Broadway -- Suite 723, New York,
NY 10006.  Questions regarding the terms of the Offer and
Solicitation should be directed to the Dealer Manager and
Solicitation Agent, UBS Investment Bank, at (888) 722-9555, ext.
337-4210 (toll-free) or (203) 719-4210 (collect).

                    About Armor Holdings Inc.

Headquartered in Jacksonville, Florida, Armor Holdings, Inc.
(NYSE: AH)-- http://www.armorholdings.com/-- manufactures and
distributes security products and vehicle armor systems for the
law enforcement, military, homeland security, and commercial
markets.  The company's mobile security division is located in
Mexico, Venezuela, Colombia and Brazil.

                        *     *     *

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


ARMOR HOLDINGS: Stifel Nicolaus Maintains Hold Rating on Shares
---------------------------------------------------------------
Stifel Nicolaus & Company analysts have kept their "hold" rating
on Armor Holdings Inc's shares, Newratings.com reports.

The analysts said in a research note that the "MRAP contract
award worth US$518 million to Armor Holdings is substantially
favorable for the company."

Stewart & Stevenson Tactical Vehicle Systems, one of Armor
Holdings' units, was awarded a US$518,543,584 "firm-fixed-priced
delivery order" to provide 1,154 Mine Resistant Ambush Protected
Category I vehicles and 16 MRAP Category II vehicles,
Newratings.com states, citing the analysts.

Headquartered in Jacksonville, Florida, Armor Holdings, Inc.
(NYSE: AH)-- http://www.armorholdings.com/-- manufactures and
distributes security products and vehicle armor systems for the
law enforcement, military, homeland security, and commercial
markets.  The company's mobile security division is located in
Mexico, Venezuela, Colombia and Brazil.

                        *     *     *

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


ECOPETROL: Inks Cano Sur Block Exploration Contract with Shell
--------------------------------------------------------------
Colombian state-owned oil firm Ecopetrol said in a statement
that it signed a contract with Shell for the joint exploration
of the Cano Sur block in Llanos Orientales.

Business News Americas relates that the 653,662-hectare Cano Sur
is in the southeast of the Villavicencio city.

According to BNamericas, state hydrocarbons regulator Agencia
Nacional de Hidrocarburos ratified the contract.

The report says that Ecopetrol and Shell will each have a 50%
stake in Cano Sur.

Ecopetrol said in a statement that it will operate the block
during the exploratory stage.  Seismic information will first be
collected and an exploratory well will be drilled next year.

An Ecopetrol spokesperson told BNamericas that the activities
will start in the first quarter of 2008.  He commented, "Shell
had worked in Colombia before, but it has been 10 years since
they worked in exploration and seven since they were involved in
production.  Shell had been the only top oil company that was
not operating in Colombia.  BP is here, as is Exxon and
Chevron."

Shell sold its service stations in Colombia in 2005 to Brazilian
state oil company Petroleo Brasileiro, BNamericas states.

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

                        *     *     *

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'.


* COLOMBIA: State Firm Secures Long Distance License from Peru
--------------------------------------------------------------
Colombian network operator Internexa, a subsidiary of state-
owned power transmission firm Interconexion Electrica SA, has
obtained a 20-year domestic and international long distance
license from the Peruvian transport and communications ministry,
Colombian news daily Portafolio reports.

Internexa runs a fiber optic network of over 4,200 kilometers in
Colombia, extended by "microwave infrastructure in certain areas
and serving more than 100 connection points."

Business News Americas relates that Internexa would provide
services in:

          -- Lima,
          -- Huarmey,
          -- Chimbote,
          -- Trujillo,
          -- Chiclayo,
          -- Piura, and
          -- Tumbes.

Internexa would install an "interconnection point" between Peru
and Ecuador, BNamericas notes.

Internexa budgeted COP57 billion for network expansion in 2007,
approximately four times the amount invested last year.  The
investment covers expansion in Colombia and "international
projects in the Andean region," BNamericas 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: Deploys Libya's Fibre Optic Backbone for EUR90MM
----------------------------------------------------------------
Alcatel-Lucent has signed a contract with Libyan Post
Telecommunications & Information Technology Company to supply a
nationwide fibre optic backbone network that will serve all of
Libya.  This contract, valued at more than EUR90 million, is a
major step forward for the Libyan telecommunications industry
and underscores Alcatel-Lucent's commitment to the expansion of
the Libyan market.

Under the terms of this contract, Alcatel-Lucent will deploy a
fibre optic network throughout the country, linking all major
cities with more than 4,400 kilometers of infrastructure and
will serve as the backbone network for Libya's telecommunication
infrastructure.

"This contract, which represents Alcatel-Lucent's largest
agreement in Libya, is a major step forward for the Libyan
telecom industry to offer next-generation services to their
customer base," said Olivier Picard, President of Alcatel-
Lucent's Europe and South activities.  "It demonstrates our
commitment to assist in the development of the Libyan
infrastructure and more generally the company's role in helping
the people throughout the African continent be able to benefit
from the advantages of a modern and powerful information
infrastructure."

LPTIC will benefit from Alcatel-Lucent's strong expertise and
experience in turnkey project management to deliver the most
efficient products and services integrating and enabling them to
successfully transform their network.

                         About LPTIC

Libyan Post Telecommunications & Information Technology Company
is the national operator that provides fixed, mobile and
internet related services throughout Libya.

                      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, 2007, 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 put a Ba2 rating
on Alcatel's Corporate Family and Senior Debt rating.  Lucent
carries 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 carry Standard & Poor's Ratings Services' BB
rating.  Its Short-Term Corporate Credit rating stands at B.




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


SERVICEMASTER CO: S&P Junks Rating on Proposed US$1.15-Bil. Loan
----------------------------------------------------------------
Standard & Poor's assigned its 'CCC+' rating to The
ServiceMaster Co.'s proposed US$1.15 billion 365-day unsecured
loan.  At the same time, Standard & Poor's withdrew its 'CCC+'
rating on the company's proposed US$1.15 billion of senior
toggle notes due 2015.  Standard & Poor's affirmed its other
ratings on ServiceMaster, including its 'B' corporate credit
rating.  The outlook is negative.

"The 365-day unsecured loan is rated two notches below the
corporate credit rating because of the amount of secured debt in
the capital structure," said Standard & Poor's credit analyst
Jean Stout.

The ratings on Downers Grove, Illinois-based ServiceMaster
reflect its very highly leveraged financial profile following
its pending acquisition by an investment group led by Clayton,
Dubilier & Rice Inc. for about US$5.6 billion, which will result
in pro forma total debt to EBITDA exceeding 9x at closing and
significant cash flow requirements to fund interest.  "Ratings
support is provided by ServiceMaster's good business positions
in its fragmented and competitive end-markets, which have
translated into good cash flow generation from a fairly diverse
portfolio of services, despite some exposure to weather
conditions in two of three of its key businesses," said Ms.
Stout.

The acquisition is expected to be financed with a US$2.65
billion term loan, US$1.15 billion of senior unsecured loan, and
US$1.4 billion in sponsor equity.  The ratings on the company's
existing debt will be withdrawn upon closing of the transaction,
with the exception of approximately US$353 million of existing
senior notes due in 2018, 2027, and 2038, which will remain
outstanding.

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


FREEPORT-MCMORAN: S&P Revises Outlook to Positive from Stable
-------------------------------------------------------------
Standard & Poor's Rating Services revised its outlooks on
Freeport-McMoRan Copper & Gold Inc. and its recently acquired
Phelps Dodge Corp. to positive from stable and affirmed all
ratings, including the 'BB+' corporate credit ratings.  In
addition, S&P assigned its 'BBB' bank loan rating and '1'
recovery rating to Freeport's new US$2.45 billion term loan A
facility, the proceeds of which were used to reduce borrowings
under its term loan B facility.  The US$3.95 billion credit
facility (including the existing US$1.5 billion revolving credit
facility) is rated 'BBB', two notches above the corporate credit
rating.  The '1' recovery indicates expectations for very high
(90%-100%) recovery in the event of a payment default.

"The outlook revision reflects our expectation that the
Freeport-McMoRan should be able to reduce its borrowings,
specifically the US$2.45 billion under its term loan A facility,
in a reasonable time frame to warrant an upgrade of the
corporate credit rating to investment grade," said Standard &
Poor's credit analyst Thomas Watters.  "Commodity end markets
remain robust, which should help to reduce unadjusted debt
levels to about US$7 billion-US$7.2 billion from about US$9.7
billion currently.  With our assessment of Freeport's business
profile and our outlook on copper prices, this level of book
debt would warrant an investment-grade rating.  For an upgrade
of one notch into investment grade, we expect funds from
operations to total adjusted debt to average 25% to 30%."

The company's vast reserve base, a diversified production
stream, and a good pipeline of developmental projects support
the current rating.

"On the other hand," Mr. Watters said, "Freeport remains
burdened by exposure to Indonesia and the inherent volatility of
the commodity markets.  If the company does not reduce debt in a
timely manner and/or a meaningful decline in commodity prices
occurs, impeding the company's progress in reducing debt, we
could revise the outlook to stable."

Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX)
-- http://www.fcx.com/-- is an international mining industry
leader based in North America with large, long-lived,
geographically diverse assets and significant proven and
probable reserves of copper, gold and molybdenum.  Freeport-
McMoRan has one of the most dynamic portfolios of operating,
expansion and growth projects in the copper mining industry.
The Grasberg mine in Indonesia, the world's largest copper and
gold mine in terms of reserves, is the company's key asset.
Freeport-McMoRan also operates significant mining operations in
North and South America and is developing the world-class Tenke
Fungurume project in the Democratic Republic of Congo.

The completion of Freeport-McMoran's acquisition further expands
the company's global operations.  The former Phelps Dodge Corp.
has mining operations in Chile, Peru, Colombia, Venezuela and
Ecuador, among others.




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


LAND O'LAKES: Earns US$54.9 Million in First Quarter 2007
---------------------------------------------------------
Land O'Lakes Inc. reported net earnings of US$54.9 million for
the first quarter ended March 31, 2007, more than double first-
quarter 2006 net earnings of US$26.1 million.  Net sales of
US$2.2 billion for the quarter were up 9% over the net sales of
US$2.0 billion for same period one year ago.  Total EBITDA was
US$101.9 million for the quarter, compared with US$69.4 million
for the first quarter of 2006.

Company officials said the improved performance reflects the
continuation of positive fourth-quarter 2006 momentum.  They
also indicated that contributing factors included: improved
commodity markets; strong performance in branded, value-added
product lines; continued emphasis on supply chain efficiency;
reduced energy costs; and progress against the company's four
Strategic Imperatives (Best Cost, Best People, Superior Insight,
Superior Portfolio).

                         Dairy Foods

The company reported pretax earnings of US$20.4 million in Dairy
Foods for the quarter, compared with a loss of US$2.9 million in
the first quarter of 2006.  Notably, earnings from both value-
added and industrial operations were improved.  Sales for the
quarter were US$880 million, up from US$809 million for the
first quarter of 2006.

                            Feed

Land O'Lakes reported US$4.3 million in pretax earnings in Feed
for the quarter, as compared with US$3.3 million for the first
quarter of 2006.  Feed sales for the quarter were US$749
million, up about 8 percent from US$693 million for the same
period one year ago.

                       Layers/Shell Eggs

Earnings were significantly improved in the company's
Layers/Shell Eggs business, conducted through its MoArk LLC
subsidiary.  For the quarter, Land O'Lakes reported US$4.2
million in pretax earnings in Shell Eggs, compared to a US$6.3
million pretax loss for the same period one year ago.  Sales for
the quarter were US$120 million, up US$12 million from the first
quarter of 2006.

                            Seed

Seed pretax earnings for the first quarter of 2007 totaled
US$34.0 million, as compared with US$40.3 million for the first
quarter of 2006.  Sales were up, at US$436 million for the
quarter versus US$389 million for the same period one year ago.

                          Agronomy

In Agronomy, the company reported US$2.1 million pretax earnings
for the quarter versus a US$6.4 million loss for the first
quarter one year ago.  The company participates in the agronomy
segment through its 50-percent ownership in the Agriliance joint
venture and agronomy sales are not reported in Land O'Lakes
financials.

At March 31, 2007, the company's consolidated financial
statements showed US$2.93 billion in total assets, US$1.95
billion in total liabilities, and US$977.7 million in total
stockholders' equity.

Full-text copies of the company's consolidated financial
statements for the quarter ended March 31, 2007, are available
for free at http://researcharchives.com/t/s?2199

                  About Land O'Lakes Inc.

Land O'Lakes Inc. -- http://www.landolakesinc.com/-- is a
national, farmer-owned food and agricultural cooperative.  Land
O'Lakes does business in all 50 states and more than 50
countries, including the Philippines, Ukraine and Guatemala.  It
is a leading marketer of a full line of dairy-based consumer,
foodservice and food ingredient products across the United
States; serves its international customers with a variety of
food and animal feed ingredients; and provides farmers and
ranchers with an extensive line of agricultural supplies and
services.  Land O'Lakes also provides agricultural assistance
and technical training in more than 25 developing nations.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 26, 2007, Moody's Investors Service upgraded the long-term
ratings of Land O'Lakes Inc., including its corporate family
rating and probability of default rating to Ba2 from Ba3, and
affirmed its speculative grade liquidity rating of SGL-2.
Moody's said the rating outlook is stable.


LAND O'LAKES: To Pay US$500,000 for Cache Trademark Infringement
----------------------------------------------------------------
Land O'Lakes, Inc., disclosed in a filing with the United States
Securities and Exchange Commission that the trial for a lawsuit
filed by Cache La Poudre Feeds, LLC, in the United States
District Court for the District of Colorado against the company,
Land O'Lakes Purina Feed LLC and certain named individuals, was
concluded July 10, 2007.

Cache sought damages of at least US$132.8 million, which, it
claimed, was the amount the company generated in gains, profits
and advantages from using the profile trade name.  In response
to Cache's complaint, the company denied any wrongdoing and
pursued certain counterclaims against Cache relating to
trademark infringement, and other claims against Cache for,
among other things, defamation and libel.

Since the company believed that Cache's calculation of the
company's gains, profits and advantages allegedly generated from
the use of the profile trade name was grossly overstated and
that the sales revenue generated from the sale of products
carrying the profile trade name was immaterial, the company
allowed the case to move to trial.

The jury determined that Cache suffered actual damages of about
US$500,000.  In addition, the jury provided an advisory opinion
to the judge that could require the company to pay to Cache an
additional US$14.6 million for alleged company profits.  The
judge, however, is granted the authority to make any awards
determination relating to awarding Cache any of the company's
profits, and the company expects a final ruling within 45 days
from the conclusion of the trial.

                    About Land O'Lakes Inc.

Land O'Lakes Inc. -- http://www.landolakesinc.com/-- is a
national, farmer-owned food and agricultural cooperative.  Land
O'Lakes does business in all 50 states and more than 50
countries, including the Philippines, Ukraine and Guatemala.  It
is a leading marketer of a full line of dairy-based consumer,
foodservice and food ingredient products across the United
States; serves its international customers with a variety of
food and animal feed ingredients; and provides farmers and
ranchers with an extensive line of agricultural supplies and
services.  Land O'Lakes also provides agricultural assistance
and technical training in more than 25 developing nations.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 26, 2007, Moody's Investors Service upgraded the long-term
ratings of Land O'Lakes Inc., including its corporate family
rating and probability of default rating to Ba2 from Ba3, and
affirmed its speculative grade liquidity rating of SGL-2.
Moody's said the rating outlook is stable.




=========
H A I T I
=========


DIGICEL: Enters Strategic Partnership with Caribbean Air Mail
-------------------------------------------------------------
Digicel told Caribbean Net News that it has entered into a
strategic partnership with Caribbean Air Mail, a leader in the
money transfer market to Haiti.

According to Caribbean Net, the partnership allows the "Haitian
Diaspora communities" in the US and Canada to buy mobile
handsets and pre-paid minutes for friends, family and associates
in Haiti.

The report says that when call credit is bought on behalf of a
client, it is immediately sent to the friend or family member's
Digicel mobile account.  Any amount -- from US$0.77 to US$138 --
can be sent.  "The offer includes a choice of six mobile
handsets, including the Nokia 1112, the Samsung X160 and the
Motorola C261."

Caribbean Net notes that after a Digicel client is informed of a
purchase made on their behalf, the handset is available within
an hour at any of CAM unit across Haiti.

Digicel Group Marketing Director Ben Atherton told Caribbean
Net, "At Digicel, we believe in making mobile technology
accessible for everyone and are continuously exploring new
product innovations and partnerships to ensure that we can bring
down telecommunications barriers.  Our partnership with
Caribbean Air Mail further strengthens our commitment to raise
mobile penetration levels in Haiti and drive the development of
communications technology throughout the region."

"We are delighted to join with Digicel in this initiative as it
allows us to offer more value and services to our customers.
CAM brings to this alliance a quarter century of experience and
reliable service, over one million loyal and satisfied customers
and a common track record of first-to-market innovations,"
Caribbean Net states, citing CAM General Manager Jean-Claude
Saliba.

Digicel Group Limited -- http://www.digicelgroup.com/-- is a
wireless services provider in the Caribbean region.  The company
is a newly created Bermuda incorporated company formed by Mr.
Denis O'Brien, who previously owned 78% of the shares of Digicel
Limited on a fully diluted basis.  The company started
operations in Jamaica in April 2001 and now offers GSM mobile
services in 22 markets primarily in the Caribbean including
Jamaica, St. Lucia, St. Vincent, Aruba, Grenada, Barbados,
Cayman, Curacao, Martinique, Guadeloupe, Trinidad and Tobago and
Haiti among others.

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.

   -- 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.




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


* HONDURAS: Gov't Launches Talks with Global Cement Firms
---------------------------------------------------------
Honduran deputy industry and commerce minister Jorge Rosa told
Business News Americas that the government has launched
negotiations with international companies keen on competing in
its cement sector.

The government has started talking with two Mexican companies.
Negotiations also are being held with an Italian firm,
BNamericas says, citing Mr. Rosa.

Mr. Rosa declined to reveal company names to BNamericas.

An official told BNamericas that the government wasn't
interested in having one Mexican cement company, Cemex,
construct a plant in Honduras because national demand is being
covered by three existing plants run by:

          -- Swiss construction and materials company Holcim,
          -- French cement company Lafarge, and
          -- a Japanese firm.

Mr. Rosa commented to BNamericas, "We always try to provide
incentives for competition.  The fact that [demand] is covered
does not mean that it is covered sufficiently, and that there is
adequate competition."

According to BNamericas, Mr. Rosa said that additional
competition would result to improved prices and quality for
cement consumers.

Mr. Rosa commented to BNamericas, "If we did not provide
incentives for this, we would be supporting the monopolies and
oligopolies."

Negotiations with Mexican companies are concentrated on
operational costs and legal security offered by commercial
accords between Mexico and Honduras, news daily La Tribuna
states, citing Mr. Rosa.

                        *     *     *

Moody's Investor Service assigned these ratings on Honduras:

                     Rating     Rating Date

   Senior Unsecured    B2       Sept. 29, 1998
   Long Term IDR       B2       Sept. 29, 1998




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


GOODYEAR TIRE: Unit's Pre-Tax Profit Drops to US$39.6MM in 2006
---------------------------------------------------------------
Profit before tax of Goodyear Tire & Rubber Company's Jamaican
unit decreased by 65% to US$39.6 million in 2006, from US$111.6
million in 2005, Radio Jamaica reports.

According to Radio Jamaica, the drop was partly due to increased
operating expenses and reduced interest income that resulted
from higher cost of goods caused by raw material cost increases
and a reduction in interest income, which was linked to lower
cash balances and cash interest rates.

Goodyear Jamaica's revenue increased 10% to US$1.3 billion in
2006, compared to US$1.1 billion in 2005, Radio Jamaica states.

                     About Goodyear Tire

Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company
(NYSE: GT) -- http://www.goodyear.com/-- is the world's largest
tire company.  The company manufactures tires, engineered rubber
products and chemicals in more than 90 facilities in 28
countries.

Goodyear maintains Asia-Pacific facilities in Australia, China
and Korea.  Its European bases are located in Austria, France,
Germany, Italy, Russia, Spain, and the United Kingdom.
Goodyear's Latin-American operations are located in Argentina,
Brazil, Chile, Colombia, Jamaica, Mexico, and Peru.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 5, 2007, Standard & Poor's Ratings Services raised its
ratings on Goodyear Tire & Rubber Co., including its corporate
credit rating to 'BB-' from 'B+'.  In addition, the ratings were
removed from CreditWatch where they were placed with positive
implications on May 10, 2007.  Recovery ratings were not on
CreditWatch.

As reported in the Troubled Company Reporter-Latin America on
May 31, 2007, Fitch Ratings has upgraded the Issuer Default
Rating for The Goodyear Tire & Rubber Company to 'B+' from 'B'.
In addition, these debt ratings have been upgraded:

  The Goodyear Tire & Rubber Company

     -- Issuer Default Rating 'B+' from 'B';

     -- US$1.5 billion first lien credit facility to 'BB+/RR1'
        from 'BB/RR1';

     -- US$1.2 billion second lien term loan to 'BB+/RR1' from
        'BB/RR1';

     -- US$300 million third lien term loan to 'BB-/RR3' from
        'B/RR4';

     -- US$650 million third lien senior secured notes to 'BB-
        /RR3' from 'B/RR4';

     -- Senior unsecured debt to 'B-/RR6' from 'CCC+/RR6'.

  Goodyear Dunlop Tires Europe B.V.

     -- EUR505 million European secured credit facilities to
        'BB+/RR1' from 'BB/RR1'.

Fitch said the rating outlook is positive.  Goodyear Tire had
approximately US$5.8 billion of debt outstanding at
March 31, 2007.


NATIONAL WATER: St. Andrew Residents Complain on Water Problems
---------------------------------------------------------------
Residents at Clarkes Hill community in St. Andrew told the
Jamaica Gleaner that they have been enduring severe water
problems for years and authorities are "dragging their feet in
granting redress."

The National Water Commission is responsible for the water
supply in Jamaica.

According to The Gleaner, accessing potable water in the upper
sections of Clarkes Hill "is an onerous task," as residents are
forced to haul huge buckets to the main standpipe in the
community.  They also have to wait in line to fill up their
containers "before the long trek back home."

A resident told The Gleaner, "Right now we have enough of this.
The only time we get piped water is on a Thursday between 10
a.m. and 5 p.m.  At that time, we have to hurry and bottle up as
much water as we need to hold us until the next Thursday.
Sometimes the water that I catch is not enough to hold me for
the week, so I have to go bathe a river, but it so far that by
the time I reach home, I sweat up back already.  I can't tell
the last time I was able to really use my bathroom facilities
the way they were intended to be used.  Right now, my water tank
is dry-rotting because of a lack of water in it.  The National
Water Commission need to really do a thing for us because water
is life, and we hardly have it up here."

Clarkes Hill's problems are due to insufficient water at the
Seaview Treatment Plant and the need for a larger distribution
network in Clarkes Hill, The Gleaner states, citing the National
Water's corporate communications manager Charles Buchanan.
Money had been procured to address the problem through a massive
project.

                        *     *     *

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




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


BALLY TOTAL: Forbearance Period Extended to July 31
---------------------------------------------------
Bally Total Fitness Holding Corporation has secured extensions
of existing forbearance arrangements until July 31, 2007, from
beneficial holders of in excess of a majority in principal
amount of its 9-7/8% Senior Subordinated Notes due 2007 and its
10-1/2% Senior Notes due 2011 and from the lenders under its
US$284 million senior secured credit facility.  The extension
agreements prohibit any enforcement action by the parties
thereto but permit the senior noteholders to declare the Senior
Notes due and payable so long as no other enforcement action is
taken.  The company will not pay any fees in connection with
these extensions.

Separately, the company continues to solicit votes for approval
from its noteholders for the previously proposed prepackaged
chapter 11 plan of reorganization.  Holders of 63% of its Senior
Notes and more than 80% of its Senior Subordinated Notes have
agreed to vote for the plan.  The voting deadline for that
solicitation is 4:00 p.m. ET on July 27, 2007.

The company also has entered into confidentiality agreements
with Liberation Investments and Harbinger Capital Partners,
proponents of an alternative restructuring proposal, and has
begun to engage in due diligence discussions with these
shareholders.  These shareholders have agreed to complete their
due diligence by July 20, 2007, and the Company has asked that
proposed definitive documentation be negotiated by that date.
There are no assurances that any agreement will be reached with
the shareholders.

The company will continue normal club operations during the
solicitation period and throughout the pendency of the
anticipated bankruptcy case.

Based in Chicago, Illinois, Bally Total Fitness Holding Corp.
(NYSE: BFT)(OTC BB: BFTH) -- http://www.ballyfitness.com/-- is
a commercial operator of fitness centers in the U.S., with over
375 facilities located in 26 states, Mexico, Canada, Korea,
China and the Caribbean under the Bally Total Fitness(R), Bally
Sports Clubs(R) and Sports Clubs of Canada (R) brands.  Bally
offers a unique platform for distribution of a wide range of
products and services targeted to active, fitness-conscious
adult consumers.

                        *     *     *

As reported in the Troubled Company Reporter on June 4, 2007,
Bally Total Fitness reached an agreement in principle on the
proposed terms of a consensual restructuring with certain
holders of over 80% in amount of its 9-7/8% Senior Subordinated
Notes due 2007.  The company plans to implement the proposed
restructuring through a pre-packaged Chapter 11 bankruptcy
filing of the parent company, Bally Total Fitness Holding
Corporation, and certain of its subsidiaries.


BALLY TOTAL: Plan Solicitation Still Ongoing
--------------------------------------------
Bally Total Fitness Holding Corporation disclosed that it
continues to solicit votes for approval from its noteholders for
the previously proposed prepackaged chapter 11 plan of
reorganization.

Holders of 63% of the company's 10-1/2% Senior Notes and more
than 80% of its 9-7/8% Senior Subordinated Notes have agreed to
vote for the plan.

The voting deadline for that solicitation is 4:00 p.m. ET on
July 27, 2007.

The Company will continue normal club operations during the
solicitation period and throughout the pendency of the
anticipated bankruptcy case.

Based in Chicago, Illinois, Bally Total Fitness Holding Corp.
(NYSE: BFT)(OTC BB: BFTH) -- http://www.ballyfitness.com/-- is
a commercial operator of fitness centers in the U.S., with over
375 facilities located in 26 states, Mexico, Canada, Korea,
China and the Caribbean under the Bally Total Fitness(R), Bally
Sports Clubs(R) and Sports Clubs of Canada (R) brands.  Bally
offers a unique platform for distribution of a wide range of
products and services targeted to active, fitness-conscious
adult consumers.

                        *     *     *

As reported in the Troubled Company Reporter on June 4, 2007,
Bally Total Fitness reached an agreement in principle on the
proposed terms of a consensual restructuring with certain
holders of over 80% in amount of its 9-7/8% Senior Subordinated
Notes due 2007.  The company plans to implement the proposed
restructuring through a pre-packaged Chapter 11 bankruptcy
filing of the parent company, Bally Total Fitness Holding
Corporation, and certain of its subsidiaries.


CKE RESTAURANTS: Closes La Salsa Mexican Retaurants Sale
--------------------------------------------------------
CKE Restaurants Inc. has completed its previously announced sale
of its La Salsa Fresh Mexican Grill restaurant chain.  The buyer
is Thousand Oaks, Calif.-based Baja Fresh Mexican Grill(R).  The
investment group is led by David Kim, and included GarMark
Partners II, LP, which is based in Stamford, CT., and M Plus
Capital, which is based in Santa Monica, Calif. Under the
agreement, Santa Barbara Restaurant Group, Inc., a wholly-owned
subsidiary of CKE, sold its 100 percent equity interest in La
Salsa, Inc. and La Salsa of Nevada, Inc.  The transaction is not
expected to have a material impact on the future earnings of CKE
on a consolidated basis.

Andrew F. Puzder, CKE president and chief executive officer
said, "With the closing of this transaction we can now shift our
resources and focus towards growing Carl's Jr. and Hardee's, as
well as dual-branding them with our Mexican brands, Green
Burrito(R) and Red Burrito(TM).  We believe these initiatives
offer the best opportunity to improve our future earnings and
cash flow.  We are pleased to have completed the sale of La
Salsa Fresh Mexican Grill, and we wish the new owners of La
Salsa the best with their investment."

As of the end of its fiscal 2008 first quarter ended May 21,
2007, CKE Restaurants, Inc., through its subsidiaries, had a
total of 3,022 franchised, licensed or company-operated
restaurants in 43 states and in 13 countries, including 1,101
Carl's Jr. restaurants and 1,905 Hardee's restaurants.

                   About CKE Restaurants

Based in Carpinteria, Calif., CKE Restaurants, Inc. (NYSE: CKR)
-- http://www.ckr.com-- through its subsidiaries, franchisees
and licensees, operates some of the most popular U.S. regional
brands in quick-service and fast-casual dining, including the
Carl's Jr.(R), Hardee's(R), La Salsa Fresh Mexican Grill(R) and
Green Burrito(R) restaurant brands.  The company operates 3,131
franchised, licensed or company-operated restaurants in 43
states and in 13 countries -- including Mexico and Singapore.

                        *     *     *

As reported in the Troubled Company Reporter on March 29, 2007,
Standard & Poor's Ratings Services affirmed its 'BB-' corporate
credit rating on CKE Restaurants.  S&P said the outlook was
stable.


CROWN HOLDINGS: June 30 Balance Sheet Upside-Down by US$388 Mil.
----------------------------------------------------------------
Crown Holdings Inc. earned US$88 million for the three months
ended June 30, 2007, compared to US$50 million of net income for
the same period in 2006.

As of June 30, 2007, the company's balance sheet showed US$6.7
billion of total assets, US$7.1 billion of total debts and a
shareholders' deficit of US$388 million.

Net sales in the second quarter rose to US$1.9 billion, up 11.7%
over the US$1.7 billion in the second quarter of 2006.  The
increase was primarily the result of higher sales unit volumes
across most product lines and geographies, the pass-through of
higher raw material costs and favorable foreign currency
translation.  Approximately 71% of sales were generated outside
the U.S. in both the second quarter of 2007 and 2006.

Second quarter gross profit grew 15.5% to US$283 million over
the US$245 million in the 2006 second quarter.  As a percentage
of net sales, gross profit expanded to 14.2% in the second
quarter from 13.8% in the second quarter last year.  Stronger
sales unit volumes, increased operating efficiencies and
productivity gains drove the improvements.

Selling and administrative expense in the second quarter was
US$93 million compared to US$74 million in last year's second
quarter.  The increase is attributable to a higher accrual for
incentive compensation costs, foreign currency translation and
general inflationary increases.

Segment income (a non-GAAP measure defined by the Company as
gross profit less selling and administrative expense) grew to
US$190 million in the second quarter, up 11.1% over the US$171
million in the 2006 second quarter.  Segment income as a
percentage of net sales was 9.5% in the second quarter compared
to 9.6% in the second quarter last year.

Commenting on the results, John W. Conway, Chairman and Chief
Executive Officer, stated, "The Company continued to build
momentum in the second quarter through a combination of positive
factors.  In our Americas Beverage business, volumes and margins
are returning to their 2005 levels due to sales unit recovery in
North America, strong Latin American results and an increase in
specialty cans in our overall sales mix.  Equally important,
margin recovery in our European Beverage business is on plan.
At the same time, our North America Food business continues to
improve.  The company remains on plan to generate strong free
cash flow in 2007, which will be available to pay down debt and
repurchase shares.  Looking ahead, our new beverage can plant in
Cambodia will begin operating in the third quarter.  This will
further expand and diversify our world class manufacturing
portfolio with entry into another fast growing emerging market."

Interest expense in the second quarter was US$77 million
compared to US$70 million in the second quarter of 2006.  The
increase reflects the impact of higher average short-term
borrowing rates and foreign currency translation.

Included within net income from continuing operations, the
company recorded a net gain of US$4 million, or US$0.02 per
diluted share, reflecting a net gain of US$8 million related to
gain on sale of assets offset by a net loss of US$4 million
related to restructuring actions.  In last year's second
quarter, the Company reported a net gain of US$2 million, or
US$0.01 per diluted share, related to financial foreign exchange
gains offset by restructuring charges.

                      About Crown Holdings

Philadelphia-based Crown Holdings Inc. (NYSE: CCK)
-- http://www.crowncork.com/-- through its affiliated
companies, supplies packaging products to consumer marketing
companies around the world.  In Latin America, the Company has
operations in Mexico, and in South and Central America.   The
Company also maintains operations in Europe, particularly in the
United Kingdom and France.  In the Asia-Pacific region, the
Company has an office in Singapore.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
July 10, 2007, Fitch Ratings has affirmed the ratings for Crown
Holdings, Inc., and its subsidiaries Crown Cork & Seal Company,
Inc., Crown Americas, LLC, and Crown European Holdings, SA as:

Crown:

  -- Issuer Default Rating 'B+'.

Crown Cork:

  -- IDR 'B+';
  -- Senior unsecured notes 'B/Recovery Rating (RR) of RR5'.

Crown Americas:

  -- IDR 'B+';
  -- Senior secured dollar term facility 'BB+/RR1';
  -- Senior secured dollar revolving facility 'BB+/RR1';
  -- Senior unsecured notes 'B+/RR4';

Crown European:

  -- IDR 'B+';
  -- Senior secured euro term facility 'BB+/RR1';
  -- Senior secured euro revolving facility 'BB+/RR1';
  -- Senior secured euro 1st priority notes 'BB+/RR1';

Approximately US$3.5 billion of debt is covered by the ratings.
The Rating Outlook was Stable.


GLOBAL POWER: Exclusive Plan Filing Period Extended to August 22
----------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware extended
Global Power Equipment Group Inc. and its debtor-affiliates'
exclusive period to file for a Chapter 11 Plan of Reorganization
until Aug. 22, 2007, and not on Oct. 1, 2007, as the Debtors
requested, Bill Rochelle of Bloomberg News reports.

As reported in the Troubled Company Reporter on June 14, 2007,
the Debtors asked for the extension citing that it was in talks
with the Official Committee of Unsecured Creditors and the
Official Committee of Equity Security Holders.  The Debtors
contended that the extension would allow them additional time to
better formulate a consensual chapter 11 reorganization plan.

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

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


GRUPO MEXICO: Union Moves Strike at 9 Units to July 30
------------------------------------------------------
A representative of Mexican national mining-metalworkers union
STMMRM told Business News Americas that the group has moved a
strike at nine Grupo Mexico units to July 30.

According to BNamericas, the protest was initially set for
July 16.

Francisco Hernandez Gamez, who heads some 1,000 Cananea
employees, told Reuters that the strike was delayed due to lack
of worker support.

BNamericas notes that talks for new collective contracts with
Grupo Mexico and mine and plant security are the reasons of the
union's planned demonstrations.

The negotiations for new contracts would be launched on Aug. 27
at Cananea, BNamericas says, citing section 65's general
secretary Sergio Tolano Lizarraga.  The union would ask for
"better guarantees" for its workers at Cananea.

Meanwhile, STMMRM denied to BNamericas reports that 15,000 of
its affiliate workers would leave the union to create a new one.

As reported in the Troubled Company Reporter-Latin America on
July 16, 2007, Cananea copper mine workers formed a new union
that promises to be less involved in conflicts.  Mr. Gamez said
that the new union would include at least 15,000 mining workers
from across Mexico.  According to him, the Cananea miners were
against the Mexican Mining and Metallurgical Workers Union
leader Napoleon Gomez Urrutia.  It wouldn't support national
work stoppages in the mining.

The new union would be led by Mr. Gamez, who accuses Grupo
Mexico of promoting that idea, BNamericas states.

Grupo Mexico SA de C.V. -- http://www.grupomexico.com/--
through its ownership of Asarco and the Southern Peru Copper
Company, Grupo Mexico is the world's third largest copper
producer, fourth largest silver producer and fifth largest
producer of zinc and molybdenum.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Dec. 29, 2006, Fitch upgraded the local and foreign currency
Issuer Default Rating assigned to Grupo Mexico, S.A. de C. V. to
'BB+' from 'BB'.  Fitch said the rating outlook was stable.


PORTRAIT CORP: Court Confirms Amended Plan of Reorganization
------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
confirmed Portrait Corporation of America Inc. at its debtor-
affiliates' Amended Chapter 11 Plan of Reorganization, Bill
Rochelle of Bloomberg News reports.

              Treatment of Claims Under the Plan

The Plan, as published in the Troubled Company Reporter on
Feb. 8, 2007, provides that holders of Allowed Administrative
Expense Claims will be paid in full and in cash. On the Plan's
effective date, the DIP obligations will be deemed allowed and
paid indefeasibly in full in accordance with the terms of the
DIP Agreement and DIP Order.

Upon full payment of all DIP Obligations, all liens and security
interests granted to secure those obligations will be
terminated.  Provided, however, that the particular provisions
of the DIP Agreement that are specified to survive will survive.
Existing letters of credit issued pursuant to the DIP Agreement
will be cancelled and replaced with new letters of credit to be
issued pursuant to the Exit Facility.

Holders of Allowed Priority Tax Claim will receive cash on the
later of the plan effective date or the date the claim became
allowed, or equal annual cash payments together with interest to
be determined by the Bankruptcy Court.

Holders of Class A Allowed Priority Non-Tax Claims will also be
paid in full in cash.

At the sole option of the Debtors, holders of Class B Allowed
Other Secured Claims will: (a) receive payment in full in cash
plus post-commencement date interest; (b) have a reinstated
claim; (c) receive the collateral securing their claim; or (d)
receive a treatment that renders the claim unimpaired pursuant
to Section 1124 of the Bankruptcy Code.

Holders of Class C Allowed Second Lien Notes Claims will
receive, in full satisfaction of their claim, their pro rata
share of 100% of Reorganized Portrait Corp of America common
stock.

Holders of Class D Allowed Senior Notes and Other Unsecured
Claims will receive their pro rata distribution of new warrants.

Holders of Class E Allowed Convenience Class Claims will receive
1% of their allowed claim as payment.

Holders of Class F Allowed Goldman Note Claims, Class G Allowed
Old Preferred Equity Interests, Class H Allowed Old Common
Equity Interests, and Class I Allowed Old Common Subsidiary
Equity Interests will not receive anything under the plan.

Goldman Note Claims refer to: -- the 13.75% Senior Subordinated
Notes due 2010, issued to GS Mezzanine Partners II L.P. and GS
Mezzanine Partners II Offshore L.P.  These notes were guaranteed
by Portrait Corporation of America Inc., American Studios Inc.,
PCA National LLC, PCA National of Texas LP, PCA Photo
Corporation of Canada Inc., Photo Corporation of America Inc.,
and PCA Finance Corp; and -- the 16.5% Senior Subordinated Notes
due 2010, issued to GS Mezzanine Partners II L.P. and GS
Mezzanine Partners II Offshore L.P.

                      About Portrait Corp.

Portrait Corporation of America Inc. -- http://pcaintl.com/--
provides professional portrait photography products and services
in North America.  The Company operates portrait studios within
Wal-Mart stores and Supercenters in the United States, Canada,
Mexico, Germany, and the United Kingdom.  The company also
operates a modular traveling business providing portrait
photography services in additional retail locations and to
church congregations and other institutions.  Portrait
Corporation and its debtor-affiliates filed for Chapter 11
protection on Aug. 31, 2006 (Bankr S.D. N.Y. Case No. 06-22541).
John H. Bae, Esq., at Cadwalader Wickersham & Taft LLP,
represents the Debtors in their restructuring efforts.  Berenson
& Company LLC serves as the Debtors' Financial Advisor and
Investment Banker. Kristopher M. Hansen, Esq., at Stroock &
Stroock & Lavan LLP represents the Official Committee of
Unsecured Creditors.  Peter J. Solomon Company serves as
financial advisor for the Committee.  At June 30, 2006, the
Debtor had total assets of US$153,205,000 and liabilities of
US$372,124,000.




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


* PANAMA: Asep To Publish Mobile Number Portability Study
---------------------------------------------------------
Panamaian public services regulator Asep's telecommunications
director Horacio Hoquee told Business News Americas that the
regulator would publish a study in September detailing how
mobile number portability (NP) could affect the market.

BNamericas relates that the study covers the overall economic
impact and costs in the implementation and "compares the
technical specifications of NP administration for mobile
operators."

The report says that fixed line portability is available.

Asep, upon releasing the study, will hold a public consultation
period, mainly to determine what sort of entity is needed to run
NP and what kind of database architecture should be used,
BNamericas notes, citing Mr. Hoquee.

Mr. Hoquee told BNamericas that implementation would be in 2008.
However, there is no set timeframe other than the release of the
study.

According to BNamericas, the launching of mobile NP is part of
Asep's plan to let two more operators into the market, "as a
two-pronged initiative" to boost competition in the mobile
market.  Both measures would lead to increased mobile
penetration.

Penetration should reach up to 70% in two years, compared to 57%
at the end of 2006, BNamericas states, citing Asep.

                        *     *     *

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.


* PANAMA: Banana Exports Decline
--------------------------------
Panama's banana exports have dropped to 20 million boxes per
year in the second millennium, compared to 42 million boxes in
the previous decade, Jahir Lombana at Fresh Plaza reports.

Fresh Plaza relates that producers, exporters and authorities
agree that a set of causes like strikes, plagues and the
European Union tariffs are the reasons for the decline.

According to Fresh Plaza, producers from the Puerto Armuelles
banana plantation at Chiriqui will stop operations if the Qatar
Petroleum Corp. and the Occidental Petroleum Corp build an oil
plant on the region.

Chiquita Brands International also told Fresh Plaza that it will
restructure the core business to avoid the high dependence on
bananas.

                        *     *     *

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


GENERAL MOTORS: Will Acquire 50% Equity Interest in VM Motori
-------------------------------------------------------------
General Motors Corp. reached a joint venture agreement with
Penske Corporation to purchase 50% equity of VM Motori S.p.A, a
designer and manufacturer of diesel engines based in Cento,
Italy.

This investment builds on GM's existing relationship with VM
Motori, GM's diesel expertise worldwide, and its strong
relationship with Isuzu.

"Diesel engines have a very important role in GM's global
advanced propulsion strategy," Tom Stephens, group vice
president, GM Global Powertrain and Quality, said.  "We are
leveraging expertise and resources within our company and
through technology partners to ensure we develop the world's
best powertrains."

GM disclosed at the Geneva Motor Show that it will jointly
develop a new 2.9-liter V-6 turbo diesel engine with VM Motori
that is scheduled to launch in the Cadillac CTS in Europe in
2009.  GM Powertrain Europe will focus on the development of the
first industry application of a clean combustion process called
closed-loop combustion control, electronic engine control and
exhaust-gas aftertreatment, as well as calibration and
integration into GM vehicles.  VM Motori plans to build the new
unit at its plant in Cento, Italy, and is responsible for the
mechanical aspects of the engine's design, development and
testing.

Penske Corporation, based in Bloomfield, Michigan, is a
transportation services company that encompasses retail
automotive sales and services, truck leasing, supply chain
logistics management, transportation components manufacturing,
and high-performance racing.

VM Motori, founded in 1947, specializes in engine design and
production for a variety of uses, including light commercial
vehicles.

GM currently offers 17 diesel engine variants in 45 vehicle
lines around the world.  GM sells more than one million diesel
engines annually, with products that offer a range of choices
from the 1.3L four-cylinder diesel engine sold in the Opel Agila
and Corsa, up to the 6.6L V-8 Duramax diesel sold in full-size
vans, heavy duty pickups and medium duty trucks in the U.S.

                     About General Motors

Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908, GM employs
about 280,000 people around the world.  With global manufactures
its cars and trucks in 33 countries.  In 2006, nearly 9.1
million GM cars and trucks were sold globally under the
following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo,
Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall.  GM's
OnStar subsidiary is the industry leader in vehicle safety,
security and information services.

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

                        *     *     *

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

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




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P E R U
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DUN & BRADSTREET: Mar. 31 Balance Sheet Upside-down by US$462.4M
----------------------------------------------------------------
Dun & Bradstreet Corp.'s balance sheet at March 31, 2007, showed
US$1.39 billion in total assets, US$1.85 billion in total
liabilities, and US$4.6 million in minority interest, resulting
in a US$462.4 million total stockholders' deficit.

The company's balance sheet at March 31, 2007, also showed
strained liquidity with US$588.4 million in total current assets
available to pay US$826.7 million in total current liabilities.

Dun & Bradstreet reported net income of US$52.7 million for the
first quarter ended March 31, 2007, compared with net income of
US$51.5 million for the same period ended March 31, 2006.

"We feel good about our first quarter results and our outlook
for 2007," said Steve Alesio, chairman and chief executive
officer of D&B.  "We're making early progress against our
strategic growth plan and we remain confident in the
sustainability of our performance and our ability to drive total
shareholder return in the future."

Core and total revenue for the first quarter of 2007 was
US$392.3 million, compared with core and total revenue of
US$367.2 million in the prior year quarter.

Operating income before non-core gains and charges for the first
quarter of 2007 was US$101.0 million, up 9 percent from the
prior year period.  On a GAAP basis, operating income was
US$85.4 million, down 1 percent from the prior year period.
During the first quarter of 2007, the company also incurred
transition costs of US$2.9 million compared with US$4.5 million
in the prior year period.

Net income before non-core gains and charges for the first
quarter of 2007 was US$59.6 million, up 7 percent from US$55.7
million in the prior year period.

Free cash flow for the first quarter of 2007, excluding the
impact of legacy tax matters, was US$104.6 million, up 49% from
the first quarter of 2006.

Net cash provided by operating activities, excluding the impact
of legacy tax matters, was US$119.6 million, up 57% from the
first quarter of 2006.  On a GAAP basis, net cash provided by
operating activities was US$119.6 million, compared to US$36.2
million in the prior year period.

Share repurchases during the first quarter of 2007, under the
company's current one-year program commenced in the fourth
quarter of 2006 totaled US$68.7 million, with US$143.7 million
repurchased since inception.  This amount is in addition to the
company's existing repurchase program to offset the dilutive
effect of shares issued under employee benefit plans, which
totaled 36.9 million in the first quarter of 2007.

The company ended the quarter with US$139.6 million of cash and
cash equivalents.

Full-text copies of the company's consolidated financial
statements for the quarter ended March 31, 2007, are available
for free at http://researcharchives.com/t/s?2082

                      About Dun & Bradstreet

Based in Short Hills, New Jersey, The Dun & Bradstreet
Corporation (NYSE:DNB) -- http://www.dnb.com/--) is a source of
commercial information and insight on businesses.  Its global
commercial database contains more than 110 million business
records.  D&B's DUNSRight quality process provides its customers
with quality business information to make critical business
decisions.  The company provides customers with four solution
sets: Risk Management Solutions, Sales & Marketing Solutions, E-
Business Solutions and Supply Management Solutions.

D&B operates through two business segments: United States, which
consists solely of its United States operations, and
International, which consists of its operations in Canada,
Europe, Asia Pacific and Latin America with locations in
Argentina, Brazil, Mexico and Peru.  During the year ended
Dec. 31, 2006, the company formed a joint venture, Huaxia D&B
China, with Huaxia International Credit Consulting Co. Ltd.  In
March 2007, the company acquired First Research, a provider of
editorial-based industry insight, specifically tailored toward
sales professionals.


* PERU: Grants Local & Int'l Long Distance License to Internexa
---------------------------------------------------------------
Peruvian transport and communications ministry has awarded a
20-year domestic and international long distance license to
Colombian network operator Internexa, Colombian news daily
Portafolio reports.

Internexa is a subsidiary of Colombian state-owned power
transmission firm Interconexion Electrica SA.  It runs a fiber
optic network of over 4,200 kilometers in Colombia, extended by
"microwave infrastructure in certain areas and serving more than
100 connection points."

Business News Americas relates that Internexa would provide
services in:

          -- Lima,
          -- Huarmey,
          -- Chimbote,
          -- Trujillo,
          -- Chiclayo,
          -- Piura, and
          -- Tumbes.

Internexa would install an "interconnection point" between Peru
and Ecuador, BNamericas notes.

Internexa budgeted COP57 billion for network expansion in 2007,
approximately four times the amount invested last year.  The
investment covers expansion in Colombia and "international
projects in the Andean region," BNamericas states.

                        *     *     *

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




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


AVNET INC: Operating Unit Inks Distribution Pact with Agilent
-------------------------------------------------------------
Avnet Inc.'s operationg group Avnet Electronics Marketing and
Agilent Technologies entered into a distribution agreement.
Under terms of the new pact, Avnet will distribute Agilent's
Monolithic Microwave Integrated Circuits line of millimeter-wave
semiconductor products in North America.

Agilent MMICs are small, high-performance and cost-efficient
chips that provide an attractive design solution for point-to-
point radios, satellite, navigational, automotive radar, global
positioning and defense/aerospace system applications -- all of
which require high-frequency, high-bandwidth, and high-
performance active circuits.

"Avnet and Agilent have teamed up to offer the breadth and depth
of tools and expertise to meet design engineers' critical
requirements for a variety of high-performance applications,"
said Jeff Ittel, senior vice president of semiconductors for
Avnet Electronics Marketing Americas.  "RF design engineers are
always looking for products that provide consistent, optimal
performance and value. This family of millimeter-wave products
allows our customers to manufacture systems with products from a
single, reliable vendor."

"We are excited to have Avnet representing our MMIC line of
products," said Greg Ward, business development manager for
Agilent.  "Avnet brings an impressive reach and strong customer
relationships in the RF and microwave market.  This provides
great potential for our expanding line of products."

                   About Agilent Technologies

Agilent Technologies Inc. (NYSE: A) -- http://www.agilent.com/-
- is the world's premier measurement company and a technology
leader in communications, electronics, life sciences and
chemical analysis.  The company's 19,000 employees serve
customers in more than 110 countries.  Agilent had net revenue
of US$5.0 billion in fiscal year 2006.

                      About Avnet Electronics

Avnet Electronics Marketing -- http://www.em.avnet.com/--is an
operating group of Phoenix-based Avnet, Inc. (NYSE:AVT), a
Fortune 500 company.  Avnet Electronics Marketing serves
electronic original equipment manufacturers (EOEMs) and
electronic manufacturing services (EMS) providers in 70
countries, distributing electronic components from leading
manufacturers and providing associated design-chain and supply-
chain services.

                            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.


AVNET INC: Unit Signs Distribution Agreement with Diodes Inc.
-------------------------------------------------------------
Avnet, Inc.'s unit SILICA signed a distribution agreement with
Diodes Incorporated, a leading manufacturer and supplier of
high-quality application specific standard products within the
broad discrete and analog semiconductor markets.

SILICA is a highly specialized semiconductor distributor with 36
branch offices throughout Europe providing customers with a
broad portfolio of semiconductor products along with in-depth
technical and logistic support as well as other value-added
services.  With local teams of application engineers and
technology specialists, SILICA is dedicated to supporting its
OEM customers technically and to providing the design-in
expertise needed for customers to compete successfully. As a
division of Avnet Electronics Marketing in Europe, Silica is
supported by Avnet Logistics for warehousing, programming and
other value-added services.

"We are very excited to add SILICA to our European distribution
network," commented Mark A. King, Senior Vice President, Sales &
Marketing of Diodes Incorporated.  "Their specialized focus on
semiconductor products and extensive local presence in Europe
will improve our ability to service our customer's logistic
requirements, enhance our competitiveness and strengthen our
brand recognition."

"Since entering the European market in 2001, we have
consistently grown our sales and expanded our market share,
successfully building our European customer base in the
automotive, communications and industrial end-markets," said Dr.
Keh-Shew Lu, President & Chief Executive Officer of Diodes, Inc.
"Diodes' innovative products have been well received and we
believe that Europe will make an important contribution to
Diodes' long term profitable growth."

"SILICA is very pleased to be associated with Diodes, Inc., a
company that enjoys an excellent reputation for innovation and
quality, and has consistently focused on and introduced leading
edge innovative products.  Their core strengths, combined with
our existing extensive regional distribution network, provide a
strong foundation to meet the needs of existing customers, and
to win new business," said Miguel Fernandez, President of
Silica.

                       About Silica

Silica -- http://www.avnet.com/-- is a specialized distributor
offering a comprehensive range of semiconductor products and
serving all European countries.  Silica is a division of
Phoenix-based Avnet, Inc., one of the largest distributors of
electronic components, computer products and technology services
and solutions with more than 250 locations serving 70 countries
worldwide.  Avnet brings a breadth and depth of capabilities,
such as maximizing inventory efficiency, managing logistics,
assembling products and providing engineering design assistance
for its 100,000 customers, accelerating their growth through
cost-effective, value-added services and solutions.  For the
fiscal year ended July 1, 2006, Avnet generated revenue of
US$14.25 billion.

                    About Diodes Incorporated

Diodes Incorporated -- http://www.diodes.com/-- an S&P SmallCap
600 Index company, is a leading global manufacturer and supplier
of high-quality application specific standard products within
the broad discrete and analog semiconductor markets, serving the
consumer electronics, computing, communications, industrial and
automotive markets.  Diodes products include diodes, rectifiers,
transistors, MOSFETs, protection devices, functional specific
arrays, power management devices including DC-DC switching and
linear voltage regulators, amplifiers and comparators, and Hall-
effect sensors.  The Company has its corporate offices in
Dallas, Texas, with a sales, marketing, engineering and
logistics office in Southern California; design centers in
Dallas, San Jose and Taipei; a wafer fabrication facility in
Missouri; two manufacturing facilities in Shanghai; a fabless IC
plant in Hsinchu Science Park, Taiwan; engineering, sales,
warehouse and logistics offices in Taipei and Hong Kong, and
sales and support offices throughout the world.  With its recent
asset acquisition of APD Semiconductor, a privately held U.S.-
based fabless semiconductor company, Diodes acquired proprietary
SBR(R) technology.  Diodes, Inc.'s product focus is on high-
growth end-user equipment markets such as TV/Satellite set-top
boxes, portable DVD players, datacom devices, ADSL modems, power
supplies, medical devices, wireless notebooks, flat panel
displays, digital cameras, mobile handsets, DC to DC conversion,
Wireless 802.11 LAN access points, brushless DC motor fans, and
automotive applications.

                         About Avnet Inc.

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.


DORAL FINANCIAL: Shareholders Approve Holdings Transaction
----------------------------------------------------------
Doral Financial Corporation's shareholders have approved all
proposals necessary to complete the proposed US$610 million
recapitalization transaction with Doral Holdings Delaware, LLC,
a newly formed entity in which Bear Stearns Merchant Banking and
other investors, including funds managed by Marathon Asset
Management, Perry Capital, the D. E. Shaw group, Tennenbaum
Capital Partners, Eton Park Capital Management, Goldman Sachs &
Co., Canyon Capital Advisors and GE Asset Management, will
invest.

Approximately 95% of the shareholders voting on the proposals,
representing more than a majority of the outstanding shares,
supported the proposals.

Doral further announced that it has received final court
approval of the settlement agreement to settle all claims in the
consolidated securities class action and shareholder derivative
litigation filed against the Company following the announcement
in April 2005 of the need to restate its previously issued
financial statements.

Subject to satisfaction of the remaining conditions to closing,
the Holdings transaction is currently expected to close on
July 19, 2007, prior to the maturity of the company's US$625
senior notes on July 20, 2007.

Dennis Buchert, Chairman of the Board of Doral Financial,
stated, "We are pleased that our shareholders have approved this
transaction and we thank them for their support during the
recapitalization process.  We look forward to closing the
transaction later this week and working with Holdings to move
forward with our efforts to build the potential of the franchise
and, in turn, value for all shareholders and the communities
Doral serves."

Glen R. Wakeman, Chief Executive Officer and President, stated,
"When I first addressed shareholders last October, as the new
management team began at Doral, I reported that there were key
issues before the company that needed to be successfully
addressed for Doral to move forward.  They were:

   -- recapitalizing Doral Financial;
   -- resolving the shareholder litigation;
   -- putting in place a strong and deep management team;
   -- bringing the company current on its financial reporting;
   -- establishing sound relationships with all of our
      regulators; and
   -- putting in place a strategy to be a competitive provider
      of a broad arrange of financial services and products to
      meet the growing needs of our customers."

"I am pleased to say that we have addressed or are addressing
successfully all of these issues," Mr. Wakeman said.

"Doral Financial is moving forward. It will now be able to do so
with a solid balance sheet anchored by Doral Bank, which is
sound financially, including by all relevant regulatory
standards.  We have the technology and infrastructure to enable
us to strategically move to a community banking approach to
better serve our customers.  As such, we are a far different and
stronger Doral than last October.  Our ability for our company
to be in this enhanced competitive position today reflects
directly on the efforts and commitment of all Doral employees,"
Mr. Wakeman said.

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

                        *     *     *

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

  Doral Financial Corporation

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

  Doral Bank

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

Fitch said the ratings remain on Rating Watch Negative.

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


HORIZON LINES: Launches Offer for 9% Senior Notes Due 2012
----------------------------------------------------------
Horizon Lines Inc. has commenced a tender offer for any and all
of the 9.00% Senior Notes due 2012 (CUSIP No. 44043YAB8) of its
subsidiaries Horizon Lines, LLC and Horizon Lines Holding Corp.
and 11.00% Senior Discount Notes due 2013 (CUSIP No. 40422RAB2)
of its subsidiary H-Lines Finance Holding Corp.  Approximately
US$197 million in aggregate principal amount of the Senior Notes
and US$104 million aggregate principal amount at maturity of the
Senior Discount Notes are currently outstanding.  In conjunction
with the tender offer, for each series of Notes, the company is
soliciting the consent of the holders of a majority in aggregate
principal amount of the outstanding Notes in such series to
eliminate substantially all of the restrictive covenants
contained in the indenture governing such Notes.  The terms and
conditions of the tender offer and consent solicitation are set
forth in an Offer to Purchase and Consent Solicitation
Statement, dated July 17, 2007.

Subject to certain conditions precedent described in the Offer
to Purchase, Holders who validly tender Notes and deliver
consents at or prior to 5:00 p.m., New York City time, on
July 30, 2007, unless such time is extended, will be entitled to
receive the Total Consideration, which includes a consent
payment of US$30.00 per US$1,000 principal amount of Notes.
Holders who validly tender and deliver Notes after the Consent
Expiration but at or prior to 12:00 midnight, New York City
time, on Aug. 13, 2007, unless such time is extended, will be
entitled to receive the Tender Consideration, which is equal to
the Total Consideration less the Consent Payment.  Assuming that
all conditions to the tender offer have been satisfied or
waived, payment will be made promptly following the company's
acceptance of such tendered Notes after the Expiration Time,
subject to the company's right to elect to accept for purchase
prior to the Expiration Time all Notes tendered prior to the
Consent Expiration and purchase such Notes promptly following
such acceptance.  Notes and related consents may be withdrawn
prior to the Consent Expiration.  After the Consent Expiration,
tendered notes and related consents may be withdrawn only under
certain limited circumstances.

The Total Consideration for each US$1,000 principal amount of
Senior Notes validly tendered and not validly withdrawn prior to
the Consent Expiration will be an amount equal to (i) the sum of
(a) the present value as of the applicable Payment Date of
US$1,045 on Nov. 1, 2008, plus (b) the present value as of the
applicable Payment Date of each of the interest payments that is
scheduled to be paid on the Senior Notes from such Payment Date
until the Senior Notes First Call Date, in each case discounted
on the basis of the yield to the Senior Notes First Call Date
equal to (x) the bid-side yield on the 4.875% U.S. Treasury
Notes due Oct. 31, 2008, as calculated by the Dealer Manager in
accordance with standard market practice, as of 2:00 p.m., New
York City time, on the second business day immediately preceding
the Consent Expiration, plus (y) 50 basis points, minus (ii)
accrued and unpaid interest from, and including, the most recent
interest payment date to, but not including, the applicable
Payment Date (such amount being rounded to the nearest cent).
Senior Notes accepted for payment will also receive accrued and
unpaid interest up to, but excluding, the applicable Payment
Date.

The Total Consideration for each US$1,000 principal amount at
maturity of Senior Discount Notes validly tendered and not
validly withdrawn prior to the Consent Expiration will be an
amount equal to the present value as of the applicable Payment
Date of US$1,055.00 on April 1, 2008, discounted on the basis of
the yield to the Senior Discount Notes First Call Date equal to
(a) the bid-side yield on the 4.625% U.S. Treasury Notes due
March 31, 2008, as calculated by the Dealer Manager in
accordance with standard market practice, as of 2:00 p.m., New
York City time, on the second business day immediately preceding
the Consent Expiration, plus (b) 50 basis points (such amount
being rounded to the nearest cent).

Subject to market conditions and other factors, the Company
currently intends to finance the tender offer with a portion of
the proceeds from the sale of up to US$300 million of its
convertible debt securities and the replacement of the company's
existing credit facility with a new credit facility consisting
of a US$125 million term loan and a US$200 million revolver.
The Offer to Purchase and this notice is not an offer to sell or
a solicitation to buy any securities.  The company's obligation
to accept for purchase and to pay the Total Consideration or
Tender Consideration, as applicable, for each of the Notes
validly tendered in the tender offer is subject to, and
conditioned upon, the satisfaction of or waiver of the
following:

    (i) the completion and close of the New Financing on terms
        and conditions satisfactory to the company, and receipt
        by the Company of net proceeds from the New Financing
        sufficient to repay the company's indebtedness under the
        existing credit facility and to purchase all Notes
        pursuant to the Offer;

   (ii) for each series of Notes, the receipt of the requisite
        consents on or prior to the Consent Expiration from the
        holders of at least a majority in aggregate principal
        amount of the outstanding Notes in such series and the
        execution of the Supplemental Indenture relating to the
        Senior Notes by Horizon Lines, LLC and Horizon Lines
        Holding Corp., each a wholly-owned subsidiary of the
        company, the Guarantors and the Trustee and the
        execution of the Supplemental Indenture relating to the
        Senior Discount Notes by H-Lines Finance Holding Corp.,
        a wholly-owned subsidiary of the company, and the
        Trustee; and

  (iii) certain other customary conditions.

The tender offer is being made only pursuant to the Offer to
Purchase and related applicable Letter of Transmittal and
Consent dated July 17, 2007.  The company has retained Goldman,
Sachs & Co. to serve as the exclusive Dealer Manager and
Solicitation Agent for the tender offer and D.F. King & Co.,
Inc. to serve as the Information Agent.  Requests for documents
may be directed to D.F. King & Co., Inc. by telephone at 800-
714-3313 (toll-free).  Questions regarding the tender offer and
consent solicitation may be directed to Goldman, Sachs & Co. at
800-828-3182 (toll-free) or 212-357-0775.

                       About Horizon Lines

Headquartered in Charlotte, North Carolina, Horizon Lines Inc.
(NYSE: HRZ) -- http://www.horizonlines.com/-- is a Jones Act
container shipping and integrated logistics company and is the
parent company of Horizon Lines Holding Corp. and Horizon Lines
LLC.  The company accounts for approximately 37% of total U.S.
marine container shipments from the continental U.S. to the
three non-contiguous Jones Act markets -- Alaska, Hawaii, and
Puerto Rico, and Guam.

                           *    *    *

As reported in the Troubled Company Reporter-Latin America on
July 3, 2007, Standard & Poor's Ratings Services raised its
corporate credit rating on Horizon Lines Inc. to 'BB-' from 'B'.
The rating on the bank loan was raised from to 'BB' from 'B+';
the recovery rating remains '2', indicating expectations of
substantial (70%-90%) recovery in the event of a payment
default.  The rating on the senior unsecured notes was raised to
'B' from 'CCC+'.  The outlook is now stable.


MOTHERS WORK: June 2007 Sales Goes Down 5.4% to US$46.9 Million
---------------------------------------------------------------
Mothers Work Inc.'s net sales for the month of June 2007
decreased 5.4% to US$46.9 million from US$49.6 million reported
for the month of June 2006.  The decrease in sales versus last
year resulted primarily from a decrease in comparable store
sales.  Comparable store sales for June 2007 decreased 5.4%
versus a comparable store sales increase of 6.2% for June 2006.

The comparable store sales decrease of 5.4% for June 2007 was
favorably impacted by approximately 2 to 3 percentage points due
to having five Saturdays in June 2007 compared to four Saturdays
in June 2006.  During June 2007, the company opened two multi-
brand stores, including its 14th Destination Maternity(R)
superstore and closed seven stores, including six stores related
to multi-brand store openings.  As of the end of June 2007, the
company operates 787 stores, 812 leased department locations and
1,599 total retail locations, compared to 815 stores, 725 leased
department locations and 1,540 total retail locations operated
at the end of June 2006.

Net sales decreased 6.5% to US$153.2 million for the third
quarter of fiscal 2007 ended June 30, 2007, from US$163.9
million for the same period of the preceding year.  The decrease
in sales versus last year resulted primarily from a decrease in
comparable store sales, partially offset by increased sales from
the company's licensed relationship and marketing partnerships.
Comparable store sales decreased 8.2% during the third quarter
of fiscal 2007 versus a comparable store sales increase of 6.4%
during the third quarter of fiscal 2006.  For the quarter ended
June 30, 2007, the company opened five stores, including four
multi-brand store openings, and closed 13 stores, with eight of
the store closings related to multi-brand store openings.

                       Management Comments

Rebecca Matthias, president and chief creative officer of
Mothers Work, noted, "Our sales for June were weaker than we had
planned and we attribute this primarily to a continued difficult
overall economic and retail environment, as well as negative
impact from the current popularity of certain styles in the non-
maternity women's apparel market, such as trapeze and baby-doll
dresses and tops, which can more readily fit a pregnant woman
early in her pregnancy than typical non-maternity fashions.  As
a result of our continued weaker than expected sales trend, our
sales for the third quarter of US$153.2 million were lower than
our guidance range of US$160 million to US$166 million provided
in our April 24, 2007 press release, with our comparable store
sales decrease of 8.2% for the quarter falling short of our
guidance range for third quarter comparable store sales of
between down 4% and down 0.5%.  The weak sales trend we have
seen in recent months has also resulted in us taking some
increased markdowns to help manage our inventory level, which
has resulted in somewhat lower than planned gross margins.  With
our lower than planned sales for the quarter, offset somewhat by
lower than planned operating expenses, reflecting continued
tight expense controls, we project that our third quarter
diluted earnings per share, excluding the charge related to our
US$90 million debt redemption in April 2007, will be between
US$0.86 and US$0.90 per share, below our guidance for diluted
earnings per common share of between US$1.25 per share and
US$1.55 per share excluding the debt redemption charge.  It is
very important to note that with our aggressive actions to
manage our inventory level, including increasing our markdown
levels, our overall inventory level is only slightly higher than
last year, and we believe we can continue to manage our
inventory levels without resorting to excessive markdown levels.

"As previously reported, we expect that the redemption of our
US$90 million 1114% Senior Notes on April 18, 2007 with the
proceeds of a US$90 million Term Loan, will result in a decrease
in annualized pre-tax interest expense of approximately
US$3.6 million, yielding an expected annualized increase to
earnings per share of approximately US$0.35 per share on an
after-tax basis.  Also, as previously disclosed, the redemption
of the Senior Notes resulted in a one-time "Loss on
extinguishment of debt" of approximately US$7.3 million on a
pre-tax basis, or approximately US$0.72 per share on an after-
tax basis, which was recognized in our fiscal third quarter upon
the redemption of the senior notes.

"Looking forward, we continue to focus on developing great
maternity product under each of our brands and continuing our
strategic transition, including continuing to expand our
marketing partnerships, our leased department and licensed
relationships, and continuing to roll out our multi-brand
stores.  We do not believe that the recent weakness in our sales
performance is indicative of any impairment of our long-term
prospects, but rather is indicative of a weak overall economic
and retail environment and a temporary fashion trend in the non-
maternity women's apparel market favoring styles which more
readily fit a pregnant woman early in her pregnancy than typical
non-maternity fashions.

"We will report our results for our third quarter on
July 24, 2007, at which time we will provide additional
information related to our results for the third quarter and our
future financial guidance, and will host an investor conference
call."

                        About Mothers Work

Based in Philadelphia and founded in 1982, Mothers Work Inc.
(Nasdaq: MWRK) -- http://www.motherswork.com/ -- designs and
retails maternity apparel.  The company operates 1,582 maternity
locations, including 798 stores in 50 states, Puerto Rico and
Canada predominantly under the tradenames Motherhood
Maternity(R), A Pea in the Pod(R), Mimi Maternity(R), and
Destination Maternity(TM), and sells on the web through its
DestinationMaternity.com and brand-specific Web sites.  In
addition, Mothers Work distributes its Oh Baby! by
Motherhood(TM) collection through a licensed arrangement at
Kohl's(R) stores throughout the United States and on Kohls.com.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
March 2, 2007, Moody's Investors Service upgraded the corporate
family rating of Mothers Work, Inc., to B2 from B3 and its
probability of default rating to B2 from B3.  The rating outlook
was stable.  The upgrade is a result of the company's sustained
improvement in operating performance combined with a sizable
debt reduction, which has led to a solid improvement in credit
metrics.  In addition, Moody's assigned a B2 rating to Mothers
Work's new proposed senior secured Term Loan B.  The proceeds
from the proposed US$90 million Term Loan B would be used to
redeem its existing 11.25% Senior Notes.




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


LEAR CORP: S&P Assigns B Corporate Credit Rating
------------------------------------------------
Standard & Poor's Ratings Services placed its 'B' corporate
credit rating on Southfield, Michigan-based Lear Corp. and
certain other issue ratings on CreditWatch with positive
implications following Lear's announcement that shareholders had
voted against the debt-financed purchase of Lear by Carl Icahn-
controlled American Real Estate Partners, L.P. (AREP;
BB+/Stable/--).

AREP currently owns or controls about 20% of Lear, an automotive
supplier.

"The CreditWatch resolution will focus on expectations for
Lear's financial profile absent the proposed acquisition debt as
well as prospects for any shifts in business or financial
strategy now that Lear will remain an independent company," said
Standard & Poor's credit analyst Robert Schulz.  Prior to the
AREP bid in February, Lear's corporate credit rating was 'B+'
and a modest upgrade which returns the corporate credit rating
to that level is possible.

At the same time, S&P's withdrew its ratings on the proposed
bank acquisition financing, revised its recovery rating on
Lear's existing bank term loan to '2' from '3' (this reflects
the recently announced changes to S&P's recovery ratings scale)
and placed the 'B+' bank loan rating on the existing term loan
on CreditWatch with positive implications.  S&P also withdrew
its 'B-3' short-term rating.

Lear has total debt of about US$3.5 billion at March 31, 2007,
including the present value of operating leases and underfunded
employee benefit liabilities.  Lear has strong market positions,
good growth prospects outside of North America, and fair
financial flexibility.  While its operating performance has been
challenged by severe industry pressures in North America that
caused credit protection measures to weaken in recent years,
Lear has reported improved results during 2007, and twice raised
its guidance for the year.  Still, with restructuring efforts
ongoing at Michigan-based automakers, we expect that 2007 and
beyond will present challenges for most US-based auto suppliers.

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.


PETROLEOS DE VENEZUELA: Seniat Billing Ameriven Oil Project
-----------------------------------------------------------
Venezuelan tax authority Seniat's head Jose Vielma Mora told Dow
Jones Newswires that it is preparing a tax bill for the Ameriven
extra-heavy oil project for up to VEB83 billion bolivars.

Dow Jones relates that Ameriven is a joint venture between
Petroleos de Venezuela SA and Chevron Corp.

Mr. Mora commented to the press, "We are only missing a tax bill
for Ameriven that will range between VEB80 billion and VEB83
billion, covering the years 2001 through 2005 [in income
taxes]."

Dow Jones notes that since the Seniat started auditing foreign
oil companies in 2004, it has collected VEB1.4 trillion in
unpaid taxes.

Seniat would bill Ameriven as soon as the tax review is
finalized, Dow Jones says, citing Mr. Mora.

Upcoming tax reforms won't include any news taxes for the oil,
gas and mining sectors, Mr. Mora told Dow Jones.

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: Will Explore Two Blocks with Belarusneft
----------------------------------------------------------------
Venezuelan state-run oil firm Petroleos de Venezuela SA said in
a statement that it will conduct natural gas exploration and
production with Belarus counterpart Belarusneft in the Guara
Este and Bloque Diez de Lago Medio mature blocks in Venezuela.

As reported in the Troubled Company Reporter-Latin America on
July 13, 2007, Petroleos de Venezuela said that it was
continuing to increase relations with Belarus.

Business News Americas relates that Petroleos de Venezuela and
Belarusneft will first create a technical group to conduct a
study on the area and come up with a development plan.

Petroleos de Venezuela said in a statement that a joint venture
firm will then be formally incorporated.  The new company will
operate in Puerto La Cruz.

BNamericas notes that Felix Rodriguez -- the head of Petroleos
de Venezuela unit PDVSA Gas -- and Belarus' deputy energy
minister Eduard Tovpenets signed a letter of agreement to
advance natural gas projects in Venezuela.

According to Petroleos de Venezuela's statement, Venezuela and
Belarus will evaluate a project to boost natural gas
infrastructure in Barinas and study the expansion of the
liquefied natural gas sector in Venezuela.  Belarus will also
hold the first Belarusian Expo in Caracas in November 2007.
Belarusian officials will present services they offer in the
fields of energy, infrastructure, science, technology and food
services in the exposition.

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

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