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        T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Tuesday, July 31, 2007, Vol. 8, Issue 150

                          Headlines

A R G E N T I N A

AGROIMPULSO CEREALES: Lenders to Vote on Settlement Plan Aug. 1
ARO SRL: Proofs of Claim Verification Deadline Is Today
BANCO HIPOTECARIO: Earns ARS72.6 Million in Second Quarter 2007
FLORMAN SA: Trustee To File Individual Reports in Court Tomorrow
DANA CORP: Court Approves USW & UAW Settlement Agreements

DELTA AIR: Earns US$1.8 Billion in Second Quarter 2007
ORIGLIA NESTOR: Trustee Filing General Report Today
SANATORIO SAN LORENZO: Claims Verification Ends Tomorrow
TELEFONICA DE ARGENTINA: Union Workers Start Strike Against Firm


B A H A M A S

ISLE OF CAPRI: Delays Filing of 10K for 2007 Due to Restatement


B E R M U D A

AIG SILK: Sets Final General Meeting for Aug. 13
CRIMEA INC: Proofs of Claim Must be Filed by Aug. 22
CRIMEA INC: Will Hold Final Shareholders Meeting on Aug. 22
ELAN CORP: Seeks Re-Examination of Negative Opinion on TYSABRI


B O L I V I A

PETROLEOS DE VENEZUELA: Exploring Bolivia's Amazon Park in 2008

* BOLIVIA: Fitch Revises B Ratings Outlook to Stable from Neg.
* BOLIVIA: Starting Amazon Park Exploration in 2008


B R A Z I L

BANCO NACIONAL: OKs BRL764MM Loan To Companhia de Transmissao
BROWN SHOE: Inks Pact to Invest in Edelman Shoe
DELPHI CORPORATION: IUE-CWA Intends to Terminate Contracts
FORD MOTOR: Moody's Holds B3 Corp. Rating with Negative Outlook
PETROLEO BRASILEIRO: Aneel OKs Firm's Control of Cubatao Plant

TELEMIG CELULAR: Reportedly Inks Purchase Deal with Vivo

* BRAZIL: Cancels Scheduled Bond Auction
* BRAZIL: Gets Favorable Ruling on Cotton Dispute with U.S.
* BRAZIL: Growth Acceleration Program May be Restructured


C A Y M A N   I S L A N D S

ANTHRACITE BALANCED: Sets Final Shareholders Meeting for Aug. 24
AQR FINANCIAL: Final Shareholders Meeting Is on Aug. 24
AQR GLOBAL: Will Hold Final Shareholders Meeting on Aug. 24
AQR GLOBAL ARBITRAGE: Final Shareholders Meeting Is on Aug. 24
AQR GLOBAL FIXED: Sets Final Shareholders Meeting for Aug. 24

AQR GLOBAL FIXED INCOME: Final Shareholders Meeting on Aug. 24
AQR GLOBAL YIELD: Holding Final Shareholders Meeting on Aug. 24
ARCEL FINANCE: Sets Final Shareholders Meeting for Aug. 24
AVALON RE: Fitch Upgrades Long-Term Credit Ratings to BB+
C60 CAPITAL: Will Hold Final Shareholders Meeting on Aug. 24

CABLE & WIRELESS: Loses Lawsuit Against Digicel
DIAMOND LINE: Sets Final Shareholders Meeting for Aug. 24
DIAMOND LINE: Proofs of Claim Must be Filed by Aug. 17
DIGICEL: Wins in Lawsuit Against Cable & Wireless
MARATHON PETROLEUM: Final Shareholders Meeting Is on Aug. 21

MORANE INVESTMENTS: Sets Final Shareholders Meeting for Aug. 24
QR GLOBAL: Final Shareholders Meeting Is on Aug. 24
ROYALTY INCOME: Will Hold Final Shareholders Meeting on Aug. 24
SAFEWRITE (CAYMAN): Sets Final Shareholders Meeting for Aug. 24
SAFEWRITE (CAYMAN): Proofs of Claim Must be Filed by Aug. 17

SAMA DEVELOPMENTS: Sets Final Shareholders Meeting for Aug. 24
TAIB FUNDS: Proofs of Claim Must be Filed by Aug. 22
TAIB FUNDS: Sets Final Shareholders Meeting for Aug. 22
WHITE RIVER: Will Hold Final Shareholders Meeting on Aug. 24


C O L O M B I A

ECOPETROL: Barrancabermeja Plant's Operations Halt


C O S T A   R I C A

ALCATEL-LUCENT: Receives Certificate from Quality Management
BANCO BANEX: Moody's Withdraws All Ratings After Merger
COVANTA HOLDING: Earns US$37.7 Million in Quarter Ended June 30


D O M I N I C A N   R E P U B L I C

PAYLESS SHOESOURCE: S&P Cuts Rating on US$200-Mil. Notes to B-


E C U A D O R

* ECUADOR: Rafael Correa OKs Preliminary Reform to Mining Law


E L   S A L V A D O R

* EL SALVADOR: State Firm Eyes Start of Talnique's 2nd Phase


H O N D U R A S

* HONDURAS: Facing Fines Due to Solid Waste Mismanagement


J A M A I C A

CENTURY ALUMINUM: Incurs US$60.7 Mil. Net Loss in Second Quarter
GOODYEAR TIRE: Earns US$56 Million in Second Quarter of 2007


M E X I C O

AMERICAN AXLE: Earns US$34 Million in 2007 Second Quarter
BALLY TOTAL: Gets Requisite Votes for Pre-Packaged Ch. 11 Plan
BALLY TOTAL: Fails to Agree w/ Shareholders on Alternate Plan
BLOCKBUSTER INC: Reports 2.8% Revenue Decrease in 2nd Qtr. 2007
CLEAR CHANNEL: Second Quarter Net Income Rises to US$236 Million

GRUPO FINANCIERO: Earns MXN3.29 Billion in First Six Months
HOST HOTELS: Net Income Drops to US$149 Mil. in Second Qtr. 2007
MCDERMOTT INT'L: Closes Revisions to US$900MM Credit Facilities
SENSATA TECH: Completes Airpax Acquisition for US$276 Million


P A R A G U A Y

* PARAGUAY: Ernest Bergen Resigns as Finance Minister


P E R U

FREEPORT-MCMORAN: 2007 2nd Quarter Profit Triples to US$1.1 Bil.


P U E R T O   R I C O

CELESTICA INC: 2nd Qtr. 2007 Revenue Decreases to US$1.9 Billion
HORIZON LINES: S&P Assigns B Rating on US$300 Mil. Senior Notes
MENNONITE HOSPITAL: Fitch Ups Rating on US$43.2MM Bonds to BB-


U R U G U A Y

* URUGUAY: Lower Financing Needs Prompt Fitch to Lift Ratings


V E N E Z U E L A

DAIMLERCHRYSLER: Banks to Pool Money to Raise Buyout Financing
DAIMLERCHRYSLER: Seeks to Trim Down Dealer Ranks to Stem Losses

* VENEZUELA: Proposed Gas Pipeline on Hold, Hugo Chavez Says


                          - - - - -


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


AGROIMPULSO CEREALES: Lenders to Vote on Settlement Plan Aug. 1
---------------------------------------------------------------
Agroimpulso Cereales S.A., a company under reorganization, will
present a settlement plan to its creditors on Aug. 1, 2007.

Jorge Blazquez, the court-appointed trustee for Agroimpulso
Cereales' reorganization proceeding, submitted individual
reports in court.  The individual reports were based on
creditors' claims that Mr. Blazquez verified.   The National
Commercial Court of First Instance in Buenos Aires determined
the verified claims' admissibility, taking into account the
trustee's opinion and the objections and challenges raised by
Agroimpulso Cereales and its creditors.  

Mr. Blazquez also presented a general report containing an audit
of Agroimpulso Cereales' accounting and banking records in
court.

The debtor can be reached at:

          Agroimpulso Cereales S.A.
          Tucuman 810
          Buenos Aires, Argentina

The trustee can be reached at:

          Jorge Blazquez
          Fray Justo Santa Maria de Oro 2381
          Buenos Aires, Argentina


ARO SRL: Proofs of Claim Verification Deadline Is Today
-------------------------------------------------------
The court-appointed trustee for Aro S.R.L.'s bankruptcy
proceeding, verifies creditors' proofs of claim July 31, 2007.

Infobae didn't state the name of the trustee.

The trustee will present the validated claims in court as
individual reports on Sept. 13, 2007.  The National Commercial
Court of First Instance in Rafaela, 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 Aro 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 Aro's accounting and
banking records will be submitted in court on Oct. 29, 2007.

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

The debtor can be reached at:

          Aro S.R.L.
          Martin Oliver 1261
          Rafaela, Santa Fe
          Argentina


BANCO HIPOTECARIO: Earns ARS72.6 Million in Second Quarter 2007
---------------------------------------------------------------
Banco Hipotecario said in its latest financial statements that
it earned ARS72.6 million in the second quarter 2007, which was
flat compared to the same quarter last year.

Business News Americas relates that Banco Hipotecario had a
ARS36-million "non-recurrent income from the repurchase in the
second quarter 2006 of US$156 million in bonds maturing in
2013."

According to BNamericas, Banco Hipotecario's earnings increased
9.9% to ARS150 million in the first six months of 2007, compared
to the same period in 2006.  Its net interest income rose 52.0%
to ARS233 million, fueled by loan volumes, fees and operating
income.

BNamericas notes that Banco Hipotecario's administrative
expenses increased 64.2% to ARS141 million in the first half of
2007, compared to the first half of last year, due to higher
personnel and branch expansion costs.

Banco Hipotecario's net loans to the private sector rose 59.2%
to ARS3.51 billion in June 2007, compared to June 2006,
BNamericas says.

Local brokerage Allaria Ledesma analyst Guido Bizzozero told
BNamericas that Banco Hipotecario's strategy of growing its non-
mortgage loan portfolio, especially credit cards and consumer
loans, has started paying off.

BNamericas states that its mortgage loans as a percentage of
total loans dropped to 53% in June 2007, from 58% in March 2007
and from 90% in 2004.

Banco Hipotecario's past-due loan portfolio declined to 4.6% of
total loans in June 2007 from 6.1% in June 2006, BNamericas
says.

Banco Hipotecario told BNamericas that retail deposits increased
58.7% to ARS763 million in the first six months of 2007, from
the first six months of 2006.

Banco Hipotecario's assets totaled ARS10.1 billion in the first
half of 2007.  Its and equity was ARS2.71 billion, BNamericas
reports.

Headquartered in Buenos Aires, Argentina, Banco Hipotecario SA
-- http://www.hipotecario.com.ar-- is an Argentinean commercial  
bank and specialty mortgage provider.  Banco Hipotecario'
business lines include credit lines for consumers, short-term
financing for exporting companies, factoring services, deposit
accounts, purchase and sale of foreign currency, custodial
services, safe deposit box rentals, payroll bank accounts,
securities brokerage services and sales of insurance through
authorized agents and companies.  The bank launched this new
series of products and services as an alternative to its
mortgage loans business, which as a result of the economic
crisis, came to a temporary halt in 2002.  In late 2003, and in
the light of the favorable trends shown by economic variables,
Banco Hipotecario started to offer new housing mortgage loans.  
The bank's subsidiaries consist of BHN Sociedad de Inversion
Sociedad Anonima.

As reported in the Troubled Company Reporter-Latin America on
June 21, 2007, Moody's Investors Service assigned a Ba1 global
local currency debt rating to Banco Hipotecario's US$200 million
senior unsecured Argentine peso-linked notes, which are due in
2010.  Moody's also assigned a Aa1.ar local currency rating in
the Argentine national scale to the notes.  Moody's said the
outlooks on the ratings are stable.


FLORMAN SA: Trustee To File Individual Reports in Court Tomorrow
----------------------------------------------------------------
Lydia Elsa Albite, the court-appointed trustee for Florman
S.A.'s bankruptcy proceeding, will present the validated claims
in court as individual reports on Aug. 1, 2007.

The National Commercial Court of First Instance No. 3 in Buenos
Aires, with the assistance of Clerk No. 5, 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 Florman and its creditors.

Ms. Albite verified creditors' proofs of claim until
June 4, 2007.

A general report that contains an audit of Florman's accounting
and banking records will be submitted in court on
Sept. 13, 2007.

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

The debtor can be reached at:

          Florman S.A.
          Suipacha 760
          Buenos Aires, Argentina

The trustee can be reached at:

          Lydia Elsa Albite
          Tacuari 119
          Buenos Aires, Argentina


DANA CORP: Court Approves USW & UAW Settlement Agreements
---------------------------------------------------------
The Honorable Burton R. Lifland of the U.S. Bankruptcy Court for
the Southern District of New York granted approval to the
settlement agreements between Dana Corporation and each of the
United Steel Workers and the United Auto Workers, as well as an
investment agreement with Centerbridge Capital Partners, L.P.,
for a major investment in the company.

As reported in the Troubled Company Reporter on July 9, 2007,
the agreements consist of:

   -- A settlement agreement with each of the United Steel
      Workers and the United Auto Workers, which will lower
      Dana's labor costs and replace the company's health care
      and long-term disability obligations for retirees and
      employees represented by these unions with Voluntary
      Employees' Beneficiary Association trusts to which Dana
      will contribute in aggregate approximately US$700 million
      in cash, less certain benefit payments made prior to the
      effective date of the company's plan of reorganization,
      and approximately US$80 million in common stock of the
      reorganized Dana;

   -- An agreement with Centerbridge Capital Partners, L.P., and
      its affiliates on the terms under which the firm will
      invest up to US$500 million in cash for convertible
      preferred stock in the reorganized Dana and facilitate an
      additional investment by other investors of up to US$250
      million in convertible preferred stock; and

   -- A plan support agreement with the USW, the UAW, and
      Centerbridge, under which these parties will support a
      plan of reorganization filed by Dana that includes both
      the labor settlements and the Centerbridge investment
      agreement.

The judge also approved a plan support agreement with the USW,
the UAW, and Centerbridge, under which these parties will
support a plan of reorganization filed by Dana that includes
both the labor settlements and the Centerbridge investment
agreement.

Under terms of the investment agreement, Centerbridge will
purchase up to US$500 million of convertible preferred stock of
the reorganized Dana and facilitate an additional investment of
up to US$250 million in convertible preferred stock.

"We are pleased with the Court's approval of these agreements,
which we believe preserves significant value for all of our
constituents," Dana Chairman and CEO Mike Burns said.  "The
developments support Dana's long-term success and keep our
company on the path to file our reorganization plan by the
beginning of September and to emerge from bankruptcy by year end
as a competitive and sustainable business."

Toledo, Ohio-based Dana Corp. -- http://www.dana.com/-- (OTC
Bulletin Board: DCNAQ) designs and manufactures products for
every major vehicle producer in the world, and supplies
drivetrain, chassis, structural, and engine technologies to
those companies.  Dana employs 46,000 people in 28 countries.  
Dana is focused on being an essential partner to automotive,
commercial, and off-highway vehicle customers, which
collectively produce more than 60 million vehicles annually.

Dana has facilities in China in the Asia-Pacific, Argentina in
the Latin American regions, and Italy in Europe.

The company and its affiliates filed for chapter 11 protection
on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354).  As of
Sept. 30, 2005, the Debtors listed US$7,900,000,000 in total
assets and US$6,800,000,000 in total debts.

Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day,
in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq.,
Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in
Cleveland, Ohio, represent the Debtors.  Henry S. Miller at
Miller Buckfire & Co., LLC, serves as the Debtors' financial
advisor and investment banker.  Ted Stenger from AlixPartners
serves as Dana's Chief Restructuring Officer.

Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel
LLP, represents the Official Committee of Unsecured Creditors.  
Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel
to the Official Committee of Equity Security Holders.  Stahl
Cowen Crowley, LLC serves as counsel to the Official Committee
of Non-Union Retirees.

The Debtors' exclusive period to file a plan expires on
Sept. 3, 2007.  They have until Nov. 2, 2007, to solicit
acceptances of that plan.


DELTA AIR: Earns US$1.8 Billion in Second Quarter 2007
------------------------------------------------------
Delta Air Lines reported combined results for the quarter ended
June 30, 2007. Key points include:

    * Delta's second quarter pre-tax income was US$1.9 billion.
      Excluding reorganization and related items, pre-tax income
      was US$373 million, a nearly US$200 million improvement
      compared to the prior year period.

    * Delta's operating income for the June 2007 quarter was
      US$490 million, the company's fifth consecutive quarterly
      operating profit, reflecting an operating margin of 9.8
      percent.  Excluding reorganization and related items,
      operating income was US$499 million, and operating margin
      was 10.0 percent.

    * In the June 2007 quarter Delta generated US$1.1 billion in
      free cash flow.  As of June 30, 2007, Delta had US$3.7
      billion in cash, cash equivalents and short-term
      investments, of which US$3.4 billion was unrestricted. The
      company's undrawn revolving credit facility provides an
      additional US$1 billion in unrestricted liquidity.

    * Delta accrued US$79 million in profit sharing for the June
      2007 quarter, in recognition of the achievements of all
      Delta employees toward meeting the company's financial
      targets.

Delta reported pre-tax income of US$1.9 billion in the second
quarter of 2007, compared to a pre-tax loss of US$2.2 billion in
the second quarter of 2006.  Given its significant net operating
loss carry forwards (NOLs) which will be used to offset
substantially all cash income tax obligations in the foreseeable
future, Delta believes pre-tax earnings is a more meaningful
measure of financial performance.

Net income for the June 2007 quarter was US$1.8 billion.  
Excluding the reorganization and related items, net income was
US$274 million.

"Delta's emergence from bankruptcy was a significant milestone
in the history of the company and the airline industry," said
Gerald Grinstein, Delta's chief executive officer.  "In
delivering the kind of outstanding financial, operational and
customer service results we saw this quarter, it is clear Delta
people at every level are producing a strong airline with a
bright future."

                    Fresh Start Reporting

Upon emergence from bankruptcy on April 30, 2007, the company
adopted fresh start reporting.  Under fresh start reporting,
Delta revalued its assets and liabilities to preliminarily
estimated current market values and changed the accounting for
its SkyMiles frequent flyer program.  These non-cash adjustments
significantly impacted Delta's balance sheet, statement of
operations and statement of cash flows.  As a result, Delta's
financial statements on and after May 1, 2007, are not
comparable to its previously issued financial statements.

                    Financial Performance

Strong passenger demand, together with Delta's network
restructuring and revenue management initiatives, drove
operating revenue of US$5.0 billion for the June 2007 quarter,
representing an increase of US$262 million or 5.5 percent
compared to the prior year period.  The increase includes a
US$42 million benefit, primarily impacting passenger revenue,
from fresh start adjustments related to a change in accounting
for Delta's frequent flyer program.

Delta's consolidated passenger unit revenue (PRASM) was 11.78
cents, an increase of 5.6% in the June 2007 quarter compared to
the same period in 2006.  Excluding the impact of the fresh
start adjustments related to a change in accounting for the
frequent flyer program, consolidated PRASM increased 4.6%.

Delta's international PRASM grew 9.7% year over year, with
trans-Atlantic markets producing an 11.1% PRASM improvement on
an 11.8% increase in capacity, and Latin American markets
producing a 6.7% increase in PRASM on a 23.8% increase in
capacity.  Domestic markets also showed solid PRASM performance,
with domestic PRASM up 5.7% on 4.8% lower capacity.
  
Delta's mix of domestic versus international capacity was 65%
and 35%, respectively in June 2007, as compared to 77 percent
and 23 percent, respectively in June 2005.

Based on the most recent available ATA data for the year-to-date
period ended May 31, 2007, Delta's consolidated length of haul
adjusted PRASM was 96% of the industry average PRASM (excluding
Delta), up from 86% in 2005 and on track with Delta's target of
closing the gap to the industry by the end of 2008.

For the June 2007 quarter, Delta's operating expenses increased
3%, or US$141 million, versus the prior year period.  The
increase was due to US$79 million in profit sharing expense,
US$36 million in non-cash expense from fresh start adjustments,
US$26 million in non-cash compensation expense related to
emergence awards, and higher expenses related to a 1% increase
in capacity.  These increases were partially offset by lower
fuel price and benefits from restructuring initiatives.  For the
same period, non-operating expenses declined 27%, or $52
million, due primarily to improved cash flows and lower
effective interest rates.

Delta's reported mainline unit cost (CASM) in the second quarter
of 2007 was 10.41 cents, an increase of 1.8% compared to the
second quarter of 2006.  Excluding expenses from profit sharing
and bankruptcy-related professional fees, mainline non-fuel CASM
was 6.93 cents, a decline of 0.6%.

                         Liquidity

At June 30, 2007, Delta had US$3.7 billion in cash, cash
equivalents and short-term investments, of which US$3.4 billion
was unrestricted.  Delta also has an additional US$1 billion in
unrestricted liquidity available under its undrawn revolving
credit facility.

During the June 2007 quarter, Delta generated US$1.1 billion in
free cash flow, which included more than US$170 million in
capital expenditures reinvested in its business.

                June 2007 Quarter Highlights

The June 2007 quarter included several significant events for
Delta.  In addition to emerging from bankruptcy on April 30,
Delta continued the positive momentum from its restructuring,
demonstrating its continued commitment to providing the best
products and services to its customers while creating value for
investors by:

    * Completing its US$2.5 billion exit financing facility,
      which includes an industry leading US$1 billion revolving
      credit facility, and repaying its US$2.1 billion debtor-
      in-possession financing loans;

    * Beginning trading of its common stock on May 3 on the
      New York Stock Exchange under the ticker symbol DAL;

    * Increasing its unrestricted cash reserves by approximately
      US$800 million by amending its Visa/Mastercard credit card
      processing agreement to provide for return of the
      previously required holdback;

    * Earning, for the second consecutive year, a ranking in the
      top two among network carriers in the JD Power Customer
      Satisfaction Survey;

    * Completing the conversion of eight B767-400 aircraft from
      domestic to international service, to continue its
      international expansion strategy.  International routes
      launched during the June 2007 quarter include new service
      from Atlanta to Dubai, Prague, Seoul, and Vienna and from
      New York-JFK to Bucharest and Pisa;

    * Confirming an additional order for a B777-LR aircraft, and
      announcing the planned installation of winglets on more
      than 60 Boeing 737-NG, 757-200 and 767-300ER aircraft over
      the next 2 years;

    * Completing its redesigned, state-of-the-art lobby at
      Hartsfield-Jackson Atlanta International Airport to
      provide its customers with a faster, more convenient
      check-in process;

    * Opening a dedicated check-in facility at Terminal 2 at New
      York-JFK, offering the only exclusively premium check-in  
      facility at that airport; and

    * Unveiling its new corporate brand and livery, which
      features the new all-red Delta "widget" to recognize
      Delta's rich heritage and highlight the company's bold,
      new identity.

"The June quarter results announced today include US$1.1 billion
in free cash flow showing solid evidence that our plan is
working.  As a result of our strong operating performance, we're
pleased to report that we accrued US$79 million in profit
sharing for the quarter that we expect will be paid to employees
early next year to reward them for all their hard work," said
Edward H. Bastian, Delta's executive vice president and chief
financial officer.  "Our turnaround continues to take hold, but
is not complete -- we must remain vigilant in driving revenue
and cost improvements, especially in light of increasing fuel
prices."

                    Operational Performance

Based on the most recent available DOT data for the year-to-date
period ended May 31, 2007, Delta ranks first of the network
carriers in on-time performance.  In addition, exchange carrier
data for the month of June 2007 indicates similar rankings
through the end of the second quarter.  Delta's June 2007
quarter completion factor was 99.1 percent.

"Delta people continue to step up to day-to-day operational
challenges and have again achieved top tier operational
performance, which is even more impressive when considered
against the severe weather and record load factors during the
quarter," said Jim Whitehurst, Delta's chief operating officer.  
"This drive to deliver excellent customer service was recognized
in Delta's second place ranking of the network carriers -- for
the second year in a row -- in the JD Power Customer
Satisfaction Survey."

                Reorganization and Related Items

In the second quarter of 2007, Delta recorded income of
US$1.5 billion from reorganization and related items, primarily
due to the discharge of claims and liabilities in connection
with its bankruptcy proceedings and the adoption of fresh start
reporting.

In the second quarter of 2006, Delta recorded a US$2.4 billion
charge for reorganization items primarily related to the allowed
general, unsecured pre-petition claim in conjunction with
changes to the Delta pilot collective bargaining agreement.

                        Fuel Hedging

During the June 2007 quarter, Delta hedged 48% of its fuel
consumption resulting in an average fuel price per gallon of
US$2.05.  Due to fresh start accounting eliminating much of the
hedge benefits toward fuel costs, the average reported fuel
price per gallon was US$2.09 for the June 2007 quarter.  Delta
realized approximately US$40 million in cash gains on fuel hedge
contracts settled during the quarter.

As of July 18, 2007, Delta has hedged 21% of its projected fuel
consumption for the September 2007 quarter utilizing heating oil
collars with an average cap of US$1.80.

                     DELTA AIR LINES, INC.
         Unaudited Consolidated Statement of Operations
                        (Unaudited)
                       (in millions)

                                    (Predecessor)  (Successor)
                                      One Month    Two Months
                                        Ended         Ended
                                      April 30,      June 30,
                                         2007         2007
                                       -------      -------  

OPERATING REVENUE:
Passenger:
  Mainline                            US$1,046     US$2,338
  Regional affiliates                      349          760
Cargo                                       36           82
Other, net                                 124          268
                                       -------      -------  
Total operating revenue                  1,555        3,448

OPERATING EXPENSES:
Salaries and related costs                 345          694
Aircraft fuel                              322          790
Contract carrier arrangements              239          530
Depreciation and amortization               95          193
Contracted services                         83          160
Landing fees and other rents                60          122
Passenger commissions
  and other selling expenses                78          175
Aircraft maintenance materials
  and outside repairs                       82          165
Aircraft rent                               20           36
Passenger service                           24           61
Other                                       62           98
Profit sharing                               -           79
                                       -------      -------  
Total operating expenses                 1,410        3,103
                                       -------      -------  
OPERATING INCOME                           145          345

OTHER (EXPENSE) INCOME:
Interest expense                           (62)        (120)

Interest income                              4           33
Miscellaneous, net                          (2)           9
Total other expense, net                   (60)         (78)
                                       -------      -------  
INCOME BEFORE REORGANIZATION ITEMS, NET     85          267

REORGANIZATION ITEMS, NET                1,515            -  
                                       -------      -------  
INCOME (LOSS) BEFORE INCOME TAXES        1,600          267

INCOME TAX (PROVISION) BENEFIT               4         (103)
                                       -------      -------  
NET INCOME (LOSS)                     US$1,604       US$164
                                       =======      =======

                        About Delta Air

Based in Atlanta, Georgia, Delta Air Lines Inc. (NYSE:DAL) --
http://www.delta.com/-- is the world's second-largest airline
in terms of passengers carried and the leading U.S. carrier
across the Atlantic, offering daily flights to 502 destinations
in 88 countries on Delta, Song, Delta Shuttle, the Delta
Connection carriers and its worldwide partners.  Delta flies to
Argentina, Australia and the United Kingdom, among others.  The
company and 18 affiliates filed for chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923).  
Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents
the Debtors in their restructuring efforts.  Timothy R. Coleman
at The Blackstone Group L.P. provides the Debtors with financial
advice.  Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at
Akin Gump Strauss Hauer & Feld LLP, provide the Official
Committee of Unsecured Creditors with legal advice.  John
McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James
S. Feltman at Mesirow Financial Consulting, LLC, serve as the
Committee's financial advisors.  As of June 30, 2005, the
company's balance sheet showed US$21.5 billion in assets and
US$28.5 billion in liabilities.  (Delta Air Lines Bankruptcy
News, Issue No. 74; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000)

The Debtors filed a chapter 11 plan of reorganization and
disclosure statement explaining that plan on Dec. 19, 2007.
On Jan 19, 2007, they filed revisions to the plan and disclosure
statement, and submitted further revisions to the plan on
Feb. 2, 2007.  On Feb. 7, 2007, the Court approved the Debtors'
disclosure statement.  In April 25 2007, the Court confirmed the
Debtors' plan.

                        *     *     *

As reported in the Troubled Company Reporter on July 16, 2007,
Fitch Ratings has initiated coverage of Delta Air Lines, Inc.
(NYSE: DAL) with the assignment of these debt ratings:
Issuer Default Rating 'B'; First-lien senior secured credit
facilities 'BB/RR1'; and Second-lien secured credit facility
(Term Loan B) 'B/RR4'.

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


ORIGLIA NESTOR: Trustee Filing General Report Today
---------------------------------------------------
Aldo Alfredo Maydana, the court-appointed trustee for Origlia
Nestor Felix y Origlia Edgardo Jose S.H.'s bankruptcy
proceeding, will submit a general report in court on
July 31, 2007.  The report contains an audit of Origlia Nestor's
accounting and banking records.

Mr. Maydana verified creditors' proofs of claim until
April 19, 2007.  He presented the validated claims in court as
individual reports on June 4, 2007.  The National Commercial
Court of First Instance in Rafaela, 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 Origlia Nestor and its creditors.

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

The debtor can be reached at:

          Origlia Nestor Felix y Origlia Edgardo Jose S.H.
          Localidad de Colonia Josefina
          Santa Fe, Argentina

The trustee can be reached at:

          Aldo Alfredo Maydana
          26 de Enero 40
          Rafaela, Santa Fe
          Argentina


SANATORIO SAN LORENZO: Claims Verification Ends Tomorrow
--------------------------------------------------------
Bua-Strickler-Moreira, the court-appointed trustee for Sanatorio
San Lorenzo S.A.'s reorganization proceeding, verifies
creditors' proofs of claim until Aug. 1, 2007.

Bua-Strickler-Moreira will present the validated claims in court
as individual reports on Sept. 17, 2007.  The National
Commercial Court of First Instance in San Lorenzo, 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 Sanatorio San Lorenzo 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 Sanatorio San
Lorenzo's accounting and banking records will be submitted in
court on Oct. 31, 2007.

The debtor can be reached at:

         Sanatorio San Lorenzo S.A.
         San Martin 1318, San Lorenzo
         Santa Fe, Argentina

The trustee can be reached at:

         Bua-Strickler-Moreira
         Tucuman 575, San Lorenzo
         Santa Fe, Argentina


TELEFONICA DE ARGENTINA: Union Workers Start Strike Against Firm
----------------------------------------------------------------
Telefonica de Argentina workers belonging to union Foetra have
started a strike against the company, Argentine news daily
Infobae reports.

As reported in the Troubled Company Reporter-Latin America on
July 19, 2007, 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.  However, reports
say that Foetra rejected the 16% salary increase proposed by
operators, which included Telefonica de Argentina.  

"Telefonica [de Argentina] has made an offer which is pretty
different from the one made by Telecom [Argentina].  Telefonica
is now offering a 11% increase and another increase of 5% in
March," Foetra press officer Silvia Hidalgo commented to
BNamericas.

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: Delays Filing of 10K for 2007 Due to Restatement
---------------------------------------------------------------
Isle of Capri Casinos Inc. last week that it will delay filing
financial results for the fiscal quarter and fiscal year ended
April 29, 2007, due to completion of its on-going restatement of
its financial statements through its fiscal year ended
April 30, 2006, and through its third fiscal quarter ended
Jan. 28, 2007.  The company expects to file its 10-Q/A for the
2007 fiscal third quarter and its 10-K for the fiscal forth
quarter and year ended April 29, 2007, before the end of July
2007.  The company disclosed to the SEC that it expects to
report a loss from continuing operations before income taxes and
minority interest for fiscal 2007 of approximately US$15.3
million on revenues of approximately US$1.0 billion, as compared
to income from continuing operations before income taxes and
minority interest for fiscal 2006 (as expected to be restated)
of US$20.7 million on revenues of US$987.4 million.

This year has been a transitional year for the company, as it
sold two of its casino operations, developed three new casino
operations and moved its corporate headquarters.  Additionally,
the company's operating results have been negatively impacted
compared to fiscal year 2006 by increased competition and severe
weather in certain of the company's markets, as well as the
normalization of operating results along the gulf coast markets
in the post hurricane recovery period.  Fiscal year 2007
includes significant pre-opening expenses of approximately
US$13.5 million, primarily incurred in the fourth fiscal
quarter, related to the openings of three casino properties in
recent months and the company will record a valuation charge on
its Lula, Mississippi property of approximately US$8.0 million
in the fourth fiscal quarter.

The impact of the restatement on the fiscal year 2006 operating
results, includes adjustments of approximately US$3.5 million
decreasing income from continuing operations before income taxes
and minority interest relating to the application of EITF 97-10
to the company's Coventry Casino Lease, adjustments of
approximately US$1.0 million decreasing income from continuing
operations before income taxes and minority interest relating to
the amortization of certain intangible items, and other various
adjustments related to operations decreasing income from
continuing operations before income taxes approximately US$3.3
million.  The expected impact of all restatement adjustments on
the fiscal year 2006 net income, including the tax effect on the
items mentioned above and the restatement adjustments to income
taxes, is expected to be a decrease in net income of
approximately US$0.1 million.

While the company does not expect the results of operations to
differ materially from those reported above, since the audit of
the fiscal 2007 results and the restatement of the fiscal 2006
results have not been completed, the audited results ultimately
reported in the company's Annual Report on Form 10-K for the
fiscal year ended April 29, 2007, may differ from those reported
above.

                   About Isle of Capri Casinos

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.




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


AIG SILK: Sets Final General Meeting for Aug. 13
------------------------------------------------
AIG Silk Fund Ltd.'s final general meeting is scheduled on
Aug. 13, 2007, at 9:30 a.m. at:

         AIG Building
         29 Richmond Road, Pembroke
         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.


CRIMEA INC: Proofs of Claim Must be Filed by Aug. 22
----------------------------------------------------
Crimea Inc.'s creditors are given until Aug. 22, 2007, to prove
their claims to Mr. Elvon Clarke, 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.

Crimea Inc.'s shareholders agreed on July 2, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidator can be reached at:

        Mr. Elvon Clarke
        20 Victoria Street
        Hamilton, Bermuda HM11


CRIMEA INC: Will Hold Final Shareholders Meeting on Aug. 22
-----------------------------------------------------------
Crimea Inc. will hold its final shareholders meeting on
Aug. 22, 2007, at 10:00 a.m., at:

          20 Victoria Street
          Hamilton, Bermuda HM11

These agendas will be taken during the meeting:

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

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

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

The liquidator can be reached at:

          Mr. Elvon Clarke
          20 Victoria Street
          Hamilton, Bermuda HM11


ELAN CORP: Seeks Re-Examination of Negative Opinion on TYSABRI
--------------------------------------------------------------
Elan Corporation plc and Biogen Idec have been informed by the
European Medicines Agency that the Committee for Medicinal
Products for Human Use has adopted a negative opinion on the
marketing application for the use of natalizumab in patients
with Crohn's disease.  

In accordance with European regulations, Elan and Biogen Idec
plan to apply for a re-examination of the negative opinion
through the appeal procedure.  A decision on the appeal is
expected by the first quarter of 2008.

"Without natalizumab, European patients with severely active
disease who failed other therapies and who are suffering from
continuous symptoms may be offered surgery, with its potential
complications, intravenous nutritional therapies or clinical
trials with unproven experimental agents, depending upon on the
patients' condition," Professor Jean-Frederick Colombel,
University of Lille, said.  "There is a need for new therapies
for this very difficult disease."

An application for approval of TYSABRI(R) (natalizumab) for
treatment of moderate to severe Crohn's disease was filed in the
US on Dec. 15, 2006.  The FDA is holding an advisory committee
to discuss the application on July 31, 2007.

                       About the Company

Headquartered in Ireland, Elan Corporation plc (NYSE: ELN) --
http://www.elan.com/-- is a neuroscience-based biotechnology  
company.  Elan shares trade on the New York, London and Dublin
Stock Exchanges.

The company has locations in Bermuda and Japan.

                        *     *     *

In April 2007, in connection with the implementation of its new
Probability-of-Default and Loss-Given-Default rating methodology
for the corporate families in the Gaming, Lodging and Leisure,
Manufacturing, and Energy sectors, Moody's Investors Service the
rating agency confirmed its B3 Corporate Family Rating for Elan
Corporation plc and assigned a B2 probability-of-default rating
to the company.

Debt ratings remain unchanged in conjunction with the
implementation of Moody's Loss Given Default and Probability of
Default rating methodology for existing non-financial
speculative-grade corporate issuers in Europe, Middle East and
Africa.

* Issuer: Elan Finance plc
                                                Projected
                              Debt     LGD      Loss-Given
   Debt Issue                 Rating   Rating   Default
   ----------                 -------  -------  --------
   US$300M Senior Unsecured
   Regular Bond/Debenture
   Due 2011                     B3      LGD4       65%

   US$300M Senior Unsecured
   Regular Bond/Debenture
   Due 2011                     B3      LGD4       65%

   US$150M Senior Unsecured
   Regular Bond/Debenture
   Due 2013                     B3      LGD4       65%

   US$850M 7.75% Senior Unsecured
   Regular Bond/Debenture
   Due 2011                     B3      LGD4       65%

   US$465M 8.875% Senior Unsecured
   Regular Bond/Debenture
   Due 2013                     B3      LGD4       65%

As reported in the TCR-Europe on Nov. 13, 2006, Standard &
Poor's Ratings Services assigned its 'B' rating to Elan Finance
plc's proposed offering of US$500 million senior unsecured notes
due 2013, to be issued in a combination of fixed and floating-
rate notes.

Outstanding ratings on Elan (including the 'B' corporate credit
rating) and its related entities were affirmed.  S&P said the
ratings outlook was stable.




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


PETROLEOS DE VENEZUELA: Exploring Bolivia's Amazon Park in 2008
---------------------------------------------------------------
Venezuelan state-run oil firm Petroleos de Venezuela SA and
Bolivian counterpart Yacimientos Petroliferos Fiscales
Bolivianos want to begin crude exploration activities in a
national park in Amazon in 2008, Reuters reports, citing the
Bolivian government.

The exploration is part of joint projects involving an
investment of over US$1 billion, Reuters notes.

Petroleos de Venezuela has promised to invest in Bolivia after
the nation's President Evo Morales nationalized the energy
sector in 2006.

"The investment would materialize in the first half of 2008 and
would be channeled through Petroandina," a firm created by
Petroleos de Venezuela and Yacimientos Petroliferos, Reuters
says, citing Bolivian Energy Minister Carlos Villegas.   
Petroandina would start exploring for oil next year in Bolivia's
Madidi, a national park that stretches from the Andes to the
Amazon basin.

Minister Villegas said in a statement, "I hope that in about
eight months the work will already be getting started... It
inspires great hopes that we'll get good results in the north of
La Paz province (Madidi)."

The Bolivian congress must authorize the establishment of
Petroandina and ease legal restrictions for exploration work to
start in the Madidi reserve, Reuters relates, citing Minister
Villegas.  President Morales had promised to explore for oil in
the poor, western region.

According to Reuters, Bolivia's natural gas-dominated energy
industry is based in its central and eastern parts.

Minister Villegas told Reuters that oil was seeping from the
ground in several places in Madidi.  However, big investments
would be needed  to find out if the area had reserves with
commercial importance.

Meanwhile, foreign firms with operations in Bolivia must submit
their own investment plans by the end of July, Reuters states.

The investments will let Bolivia double its gas production
within five years to boost exports to Brazil and Argentina and
meet its domestic needs, the government told Reuters.

                About Petroleos de Venezuela

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

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


* BOLIVIA: Fitch Revises B Ratings Outlook to Stable from Neg.
--------------------------------------------------------------
Fitch Ratings revised the Outlook on Bolivia's long-term foreign
and local currency sovereign Issuer Default Rating to Stable
from Negative, and affirmed these ratings:

  -- Long-term foreign currency Issuer Default Rating at   
     'B-'; Outlook to Stable;
  -- Long-term local currency IDR at 'B-'; Outlook to Stable;
  -- Short-term IDR at 'B';
  -- Country Ceiling at 'B-'.

Public debt reductions under the Multilateral Debt Relief
Initiative (MDRI), maintenance of macroeconomic stability and
positive economic prospects, underpinned by a favorable external
environment, supported the revision of Bolivia's Outlook to
Stable.  'Though political, social and policy challenges will
continue to weigh on Bolivia's ratings, the MDRI and sustained
growth have reversed the prior trend of deteriorating external
solvency and liquidity ratios,' said Theresa Paiz Fredel, Senior
Director of Fitch's Latin American Sovereign team.

As a result of the MDRI, debt sustainability is no longer a
pressing issue. MDRI covered 100% of debt incurred by Bolivia
before January 2005 to the IMF (US$230 million) and the World
Bank (US$ 1.5 billion).  Bolivia's public debt/GDP ratio
declined to 32% by year-end 2006 from a peak of 60% at year-end
2004. Additional debt relief from the Inter-American Development
Bank totaling US$1.2 billion will reduce the public debt/GDP
ratio to below 20% of GDP this year.  As other sovereigns in the
'B' rating category have also benefited from the MDRI, Bolivia's
debt levels remain in line with similarly rated credits.

Despite divisive domestic issues including the direction of
macroeconomic policy and the Constituent Assembly, Bolivia's
overall macroeconomic performance has strengthened within the
context of a favorable external environment.  Inflation declined
in 2006, though negative supply shocks and rapid monetary
expansion are putting upward pressure on prices so far in 2007.
The performance of the extractive sectors will continue to drive
moderate GDP growth of around 4.5%, as well as a strong balance
of payments over Fitch's forecast period.  The latter has led to
record accumulation of international reserves, which are
projected to increase by over US$800 million this year, reaching
more than US$4 billion by year-end.  Additionally, changes in
the hydrocarbons law and expenditure restraint have underpinned
a significant fiscal adjustment as the general government
balance reverted to a surplus of 3.5% of GDP in 2006 after
peaking at an 8.9% of GDP deficit in 2002.

Bolivia's short-term economic outlook remains favorable, but the
country faces many challenges and risks over the medium-to-long
term, particularly with respect to attracting foreign direct
investment, which is needed to develop its abundant natural
resources and to deliver on gas contracts it has already signed
with Argentina and Brazil.  Better infrastructure, stronger
institutions, and improvements in the rule of law are also
critical to supporting growth and raising employment and living
standards.

Now that the renegotiation of the hydrocarbons contracts has
been successfully completed, more clarity on macroeconomic
policy choice, particularly pertaining to other key sectors of
the economy such as mining, electricity and telecommunications,
would be positive for creditworthiness.  Continued macroeconomic
stability and/or an easing of social tensions, which results in
improved governability would also benefit Bolivia's credit
fundamentals.  By contrast, increased social and/or political
instability that detracts from Bolivia's economic performance or
affects debt service willingness could bring renewed pressure to
Bolivia's ratings.


* BOLIVIA: Starting Amazon Park Exploration in 2008
---------------------------------------------------
The Bolivian government told Reuters that its state-run oil firm
Yacimientos Petroliferos Fiscales Bolivianos and Venezuelan
counterpart Petroleos de Venezuela SA want to begin crude
exploration activities in a national park in Amazon in 2008.

The exploration is part of joint projects involving an
investment of over US$1 billion, Reuters notes.

Petroleos de Venezuela promised to invest in Bolivia after the
nation's President Evo Morales nationalized the energy sector in
2006.

"The investment would materialize in the first half of 2008 and
would be channeled through Petroandina," a firm created by
Petroleos de Venezuela and Yacimientos Petroliferos, Reuters
says, citing Bolivian Energy Minister Carlos Villegas.   
Petroandina would start exploring for oil next year in Bolivia's
Madidi, a national park that stretches from the Andes to the
Amazon basin.

Minister Villegas said in a statement, "I hope that in about
eight months the work will already be getting started ... it
inspires great hopes that we'll get good results in the north of
La Paz province (Madidi)."

The Bolivian congress must authorize the establishment of
Petroandina and ease legal restrictions for exploration work to
start in the Madidi reserve, Reuters relates, citing Minister
Villegas.  President Morales had promised to explore for oil in
the poor, western region.

According to Reuters, Bolivia's natural gas-dominated energy
industry is based in its central and eastern parts.

Minister Villegas told Reuters that oil was seeping from the
ground in several places in Madidi.  However, big investments
would be needed to find out if the area had reserves with
commercial importance.

Meanwhile, foreign firms with operations in Bolivia must submit
their own investment plans by the end of July, Reuters states.

The investments will let Bolivia double its gas production
within five years to boost exports to Brazil and Argentina and
meet its domestic needs, the government told Reuters.

                About Petroleos de Venezuela

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

                        *     *     *

Fitch Ratings assigned these ratings on Bolivia:

                    Rating    Rating Date

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




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


BANCO NACIONAL: OKs BRL764MM Loan To Companhia de Transmissao
-------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social said in a
statement that it has authorized a BRL764-million loan to
transmission firm Companhia de Transmissao de Energia Eletrica
Paulista.

Business News Americas relates that Companhia de Transmissao
will use the funds to enhance, upgrade and strengthen its
transmission systems as well as boost the quality of power
supply.

Banco Nacional told BNamericas that Companhia de Transmissao
will invest some BRL1 billion in its transmission systems.

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.


BROWN SHOE: Inks Pact to Invest in Edelman Shoe
-----------------------------------------------
Brown Shoe Company Inc. has entered into an agreement with Sam
Edelman and his wife Libby to make an investment in Edelman
Shoe, Inc.  This investment will allow the Edelmans to
accelerate the development and expansion of the Sam Edelman
brand, a growing women's fashion footwear brand launched in 2004
by industry veteran Sam Edelman.  The brand is young, fun, and
fresh with crossover appeal and relevance for women of all age
groups, and is sold in better department stores, including Belk,
Bloomingdale's, Macy's, Neiman Marcus Cusp, Nordstrom, and Von
Maur, as well as Victoria's Secret catalogue and over 500
independent and specialty stores across the country.  
Additionally, Edelman Shoe has plans to open its first retail
store in New York City in 2008, followed by stores in Los
Angeles, Las Vegas, and South Beach.  Edelman Shoe also markets
the SE Boutique and Sam Edelman Kids brands.  Sam Edelman and
Libby Edelman maintain a majority interest in the company and
Brown Shoe has acquired an option to buy the remaining interest
in the future.

"We are excited to partner with Sam Edelman in developing and
growing a brand that has already established strong consumer
appeal," said Brown Shoe Chairman and CEO Ron Fromm.  "We
believe there is a significant growth opportunity for this brand
and that Brown Shoe's sourcing and distribution expertise will
be a great complement to Sam's creativity, product vision,
entrepreneurship, and over thirty years of experience."

"We believe that with Brown Shoe as our partner, we will be able
to focus our energies and build the Sam Edelman brand into one
of the most important brands in the shoe industry -- one with
integrity and longevity," said Sam Edelman.  "We also believe
that with the professionalism our new partners bring to our
organization, we will finally have the time to develop great
licensing opportunities in related areas.  We have been a vendor
of Brown Shoe for over thirty years and have always felt at home
there.  We are thrilled about this next phase in our
relationship."

                      About Edelman Shoe

Edelman Shoe Inc. is led by Sam Edelman, who manages sales and
product design, and his wife Libby, who manages marketing and
public relations.  The couple has worked together for twenty
years, beginning with the very successful launch of the Sam &
Libby brand in 1987, which was later sold in 1997.  Sam Edelman
has a proven track record in the footwear industry, beginning in
1975 when he collaborated with his father to create the
"Horseshoes" brand, which was licensed to Ralph Lauren, and
includes key roles at Candies, Kenneth Cole Productions, and
launching the footwear division at Esprit.

                       About Brown Shoe

Headquartered in St. Louis, Missouri, Brown Shoe Company, Inc.
-- http://www.brownshoe.com/-- is a US$2.3 billion footwear  
company with global operations including Brazil, Italy, China,
Hong Kong, and Taiwan.  The Company operates the 900+ store
Famous Footwear chain, which sells brand name shoes for the
family.  It also operates 300+ specialty retail stores in the
U.S. and Canada under the Naturalizer, FX LaSalle and Via Spiga
names, and Shoes.com, the Company's e-commerce subsidiary.
Brown Shoe, through its Wholesale divisions, owns and markets
leading footwear brands including Via Spiga, Naturalizer,
LifeStride, Nickels Soft, Connie and Buster Brown; it also
markets licensed brands including Franco Sarto, Dr. Scholl's,
Etienne Aigner, Bass and Carlos by Carlos Santana for adults,
and Barbie and Disney character footwear for children.

                        *     *     *

As reported in the Troubled Company Reporter on April 3, 2007,
Moody's Investors Service changed the outlook of Brown Shoe
Company, Inc., to positive from stable and affirmed its
Ba3 corporate family rating on the company.  Ratings that were
affirmed also include the company's Probability-of-default
rating at Ba3; US$150 Million guaranteed senior unsecured notes
due 2012 at B1, LGD5, 72%; and Speculative Grade Liquidity
Rating at SGL-2.


DELPHI CORPORATION: IUE-CWA Intends to Terminate Contracts
----------------------------------------------------------
The International Union of Electronic, Electrical, Salaried,
Machine and Furniture Workers Division of the Communications
Workers of America notified Delphi Corp. of its intent to
terminate its local and national contracts with the auto parts
maker in a July 18, 2007 letter.  The action comes as talks over
a new national agreement have dragged on concerning key issues,
including job security, wages, and benefits.

"Delphi has not delivered proposals that meet our members'
needs," said IUE-CWA President Jim Clark.  "From the start we
have stated that IUE-CWA members want both their jobs and
dignity intact at the end of the process.  We are tired of
spinning our wheels in negotiations while Delphi falls short of
these basic demands."

The termination notice is the first step toward a national
strike by the IUE-CWA at Delphi.  Under the terms of the
national agreement, the notice allows the locals to strike
effective 12:01 a.m. on Oct. 13, 2007.

"There is still much time to change our course," said IUE-CWA
Automotive Conference Board Chairman Willie Thorpe.  "But we
cannot sit back and be unprepared.  In our estimation, given the
current state of talks, a strike is a real possibility and we
need to act accordingly."

As part of the termination notice, IUE-CWA also revoked its
permission for Delphi to continue to use temporary employees in
IUE-CWA represented facilities.

"The union had allowed temporary workers as a goodwill gesture
as long as talks toward an acceptable contract were progressing.  
Hopefully with this action progress may improve," explained
Mr. Clark.

According to the IUE-CWA, Delphi has the option of reducing
production output or hiring the workers as permanent.  In most
cases, the cut-off takes place in two weeks.

The IUE-CWA represents more than 2,000 Delphi workers.

                     About Delphi Corp.

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

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

(Delphi Corporation Bankruptcy News, Issue No. 77; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or     
215/945-7000).


FORD MOTOR: Moody's Holds B3 Corp. Rating with Negative Outlook
---------------------------------------------------------------
Moody's Investors Service said that the performance of Ford
Motor Company's global automotive operations for the second
quarter of 2007 was significantly stronger than the previous
year and better than street expectations.

However, the company continues to face significant competitive
and financial challenges, and the rating agency expects that
Ford's credit metrics and rate of cash consumption will likely
remain consistent with no higher than a B3 corporate family
rating level into 2008.

Ford's corporate family rating is currently a B3 with a negative
outlook.  The rating is pressured by the shift in consumer
preference from high margin trucks and SUVs, and by the need for
a new 2007 UAW contract that provides meaningful relief from
high health care costs and burdensome work rules.

The most daunting long-term challenge facing Ford will be
building the profitability of its car and crossover models, and
reducing its overdependence on trucks and SUVs to generate
earnings.  Although lowering its cost structure, including
healthcare costs, is an important element of this profit
rebuilding initiative, the most critical and most difficult
challenge for both Ford and the other domestic OEMs, will be
convincing consumers that they will receive adequate value if
they pay higher prices for their cars and crossover vehicles.

"Domestic OEM's have a cost disadvantage of about US$1,000 per
vehicle relative to Japanese transplants due to health care
costs.  However, the differential between what consumers are
willing to pay for a US car or crossover compared with a
similarly equipped Japanese vehicle is significantly greater,"
said Bruce Clark, senior vice president with Moody's.

Ford and the other domestic OEMs may be able to reach a health
care buy-down agreement with the UAW that is structurally
similar to that reached by Goodyear, and thereby narrow the
US$1,000 per vehicle health care cost disadvantage.  Moody's
believes that Ford may have the resources necessary to fund a
material health care buy-down, and thereafter maintain the
liquidity necessary to cover the US$15 to US$16 billion
operating cash consumption that the company expects will occur
through 2008.

This liquidity includes US$37 billion in cash and short-term
VEBA balances, US$13 billion in availability under a committed
credit facility, and any proceeds that would be raised by the
potential sale of the Jaguar, Land Rover and Volvo operations.  
However, if a constructive health care agreement were reached by
Ford and the other domestic OEMs, the company will still have to
contend with a significant pricing differential versus its
Japanese competitors.

Mr. Clark said, "In terms of overall quality, performance, and
safety, the Ford Fusion is pretty competitive with vehicles like
the Camry, Accord and Altima.  However, after taking all
incentives and rebates into consideration, consumers are willing
to pay in the neighborhood of US$4,000 more for one of these
vehicles that for a Fusion.  Put another way, Ford has to charge
US$4,000 less than the competition to get consumers to buy one
of its best vehicles, and the differential is much wider for
other cars in the Ford line up."

In contrast, Ford does not face the same type of endemic pricing
disadvantage in the truck and SUV segments.  In these vehicle
categories, consumers perceive Ford as being able to deliver
good value for which they are willing to pay.  But, as Clark
pointed out, "The problem is that consumers are moving away from
these vehicle segments."

Moody's believes that Ford continues to make solid progress in
improving the quality and value proposition of its cars and
crossovers relative to those of Japanese manufacturers.  
However, Mr. Clark said that, "Not only does Ford have to
continue delivering better quality vehicles, it has to convince
consumers to pay up for them.  Convincing consumers to do this
will take time and it will also require the design of vehicles
that make a strong and appealing visual statement."  According
to Mr. Clark, "GM and Chrysler face similar challenges."

Until the profitability base of vehicles other than trucks and
SUVs becomes more substantive, Ford's intermediate-term cash
flow will remain negative and the company will have to maintain
the liquidity necessary to cover this outflow.

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

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

                        *     *     *

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

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


PETROLEO BRASILEIRO: Aneel OKs Firm's Control of Cubatao Plant
--------------------------------------------------------------
Brazilian power regulator Aneel said in a statement that it has
allowed the country's state oil firm Petroleo Brasileiro SA to
take control of the 250-megawatt Cubatao gas-fired plant.

Business News Americas relates that the plant will begin
producing by October 2007.  It was previously owned by special
purposes company Baixada Santista Energia, which was controlled
by Petroleo Brasileiro.  

Petroleo Brasileiro will transfer control of the plant to lessen
costs and for accounting purposes, Aneel told BNamericas.  The
regulator said it also allowed Petroleo Brasileiro to boost the
number of substations in the plant from one to two.

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.


TELEMIG CELULAR: Reportedly Inks Purchase Deal with Vivo
--------------------------------------------------------
Telemig Celular has allegedly signed a sale deal with mobile
operator Vivo Participacoes, Business News Americas reports.

BNamericas notes that US investment bank Merrill Lynch is
coordinating the sale.

A source told Brazilian news daily Gazeta Mercantil that Vivo,
through its joint venture controllers Spain's Telefonica and
Portugal Telecom, had paid BRL3.5 billion to the controllers of
Telemig Celular and Amazonia Celular.

BNamericas relates that Telemig Celular and Amazonia Celular are
controlled by US bank Citigroup and local pension funds Previ,
Petros, Funcef and Telos.  

Local brokerage Ativa Corretora analyst Luciana Leocadio told
BNamericas that the value estimated in Gazeta Mercantil is in
the range the market has expected to be paid for Telemig Celular
and Amazonia Celular of BRL3 billion to BRL4 billion.  However,
that report doesn't say whether a deal was signed for only the
controllers' stake or for the whole company.

A Vivo press officer confirmed to BNamericas that the firm is in
the bidding process to own Telemig Celular.

Vivo would gain coverage in Minas Gerais and the northeast of
Brazil where it does not have commercial operations by acquiring
Telemig Celular and Amazonia Celular.  The company would also
gain 4.8 million subscribers.  Vivo reported over 35 million
customers at the end of the second quarter 2007, BNamericas
states.

Headquartered in Belo Horizonte, Brazil, Telemig Celular is the
leading provider of mobile communications services in the state
of Minas Gerais, Brazil.  As of Sept. 30, 2006, Telemig had 3.42
million subscribers, with a market share of 33% in its
concession area.

As reported in the Troubled Company Reporter-Latin America on
Jan. 4, 2007, Moody's Investors Service placed under review for
possible downgrade the B2 foreign currency rating of the US$120
million senior unsecured notes units issued by Telemig Celular
SA and Amazonia Celular SA.

Moody's rating action reflected primarily Amazonia's overall
deteriorated credit metrics as a result of weakened operating
margins and increased competitive pressures, as well as Moody's
concerns regarding the company's tightened liquidity position
due to a substantial concentration of debt maturity in the short
term.


* BRAZIL: Cancels Scheduled Bond Auction
----------------------------------------
The Brazilian government has called off a scheduled auction of
its main LTN bonds, Dow Jones Newswires reports.  

A Brazilian government official told Dow Jones that unstable
market conditions were the cause of the cancellation.

The same report says that the government normally holds one or
two bond auctions per week.

                        *     *     *

As reported on Nov. 24, 2006, Standard & Poor's
Ratings Services revised its outlook on its long-term
ratings on the Federative Republic of Brazil to
positive from stable.  Standard & Poor's also affirmed
these ratings on the Republic of Brazil:

   -- 'BB' for long-term foreign currency credit rating,

   -- 'BB+' for long-term local currency credit rating, and

   -- 'B' for short-term currency sovereign credit rating.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
May 14, 2007, Fitch Ratings upgraded Brazil's long-term foreign
and local currency sovereign Issuer Default Ratings to 'BB+'
from 'BB' and the Country Ceiling to 'BBB-' from 'BB+'.  In
addition, Fitch affirmed Brazil's Short-term IDR at 'B'.  Fitch
said the rating outlook was stable.


* BRAZIL: Gets Favorable Ruling on Cotton Dispute with U.S.
-----------------------------------------------------------
Brazil obtained a favorable ruling from the World Trade
Organization in a cotton subsidy dispute with the United States.

Mark Drajem and Carlos Caminada at Bloomberg News say that the
WTO said in its ruling that the U.S. failed to overhaul its
cotton subsidies enough to comply with global trade rules.

Bloomberg relates that under trade rules, Brazil can submit a
list of US-exported products on which it wants to raise tariffs
in retaliation.  The South American country may hike duties on
some products should the US fail to comply with a final ruling
the WTO will issue by Oct. 1.

The United States' subsidies to its cotton growers had caused an
excess in production, resulting to low prices worldwide.  A WTO
ruling in 2004 said that as much as US$4 billion a year in
subsidies violated global trade rules, Bloomberg says.

According to The Financial Times, the U.S. amended or thrashed
some programs that did not comply with world trade rules.  But
still, Brazil insisted that some of the most trade-distorting
subsidies, like marketing loans and counter-cyclical payments,
were left unchanged.

                        *     *     *

As reported on Nov. 24, 2006, Standard & Poor's
Ratings Services revised its outlook on its long-term
ratings on the Federative Republic of Brazil to
positive from stable.  Standard & Poor's also affirmed
these ratings on the Republic of Brazil:

   -- 'BB' for long-term foreign currency credit rating,
   -- 'BB+' for long-term local currency credit rating, and
   -- 'B' for short-term currency sovereign credit rating.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
May 14, 2007, Fitch Ratings upgraded Brazil's long-term foreign
and local currency sovereign Issuer Default Ratings to 'BB+'
from 'BB' and the Country Ceiling to 'BBB-' from 'BB+'.  In
addition, Fitch affirmed Brazil's Short-term IDR at 'B'.  Fitch
said the rating outlook was stable.


* BRAZIL: Growth Acceleration Program May be Restructured
---------------------------------------------------------
Brazilian planning minister Paulo Bernardo told reporters that
the government's growth acceleration plan may be restructured.

Minister Bernardo explained to the press that the change might
be made to redirect BRL2 billion to the aviation sector.

"I suggested [to President Luiz Inacio Lula da Silva] that we
make a reevaluation of our investments, particularly those in
PAC [growth acceleration program].  We spoke about the
possibility of reorganizing investments in airports until 2010.  
They would therefore add up to BRL5 billion in total," Minister
Bernardo commented to Business News Americas.

                        *     *     *

As reported on Nov. 24, 2006, Standard & Poor's Ratings Services
revised its outlook on its long-term ratings on the Federative
Republic of Brazil to positive from stable.  Standard & Poor's
also affirmed these ratings on the Republic of Brazil:

   -- 'BB' for long-term foreign currency credit rating,
   -- 'BB+' for long-term local currency credit rating, and
   -- 'B' for short-term currency sovereign credit rating.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
May 14, 2007, Fitch Ratings upgraded Brazil's long-term foreign
and local currency sovereign Issuer Default Ratings to 'BB+'
from 'BB' and the Country Ceiling to 'BBB-' from 'BB+'.  In
addition, Fitch affirmed Brazil's Short-term IDR at 'B'.  Fitch
said the rating outlook was stable.




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


ANTHRACITE BALANCED: Sets Final Shareholders Meeting for Aug. 24
----------------------------------------------------------------
Anthracite Balanced Company (11) Ltd. will hold its final
shareholders meeting on Aug. 24, 2007, at 10:00 a.m., at:

          P.O. Box 1109
          George Town, Grand Cayman
          Cayman Islands

These agendas will be taken during the meeting:

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

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

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

The liquidators can be reached at:

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


AQR FINANCIAL: Final Shareholders Meeting Is on Aug. 24
-------------------------------------------------------
AQR Financial Futures Offshore Fund (USD) IV Ltd. will hold its
final shareholders meeting on Aug. 24, 2007, at 10:00 a.m., at:

          Queensgate House
          South Church Street, Grand Cayman
          Cayman Islands

These agendas will be taken during the meeting:

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

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

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

The liquidator can be reached at:

          Ogier
          Attention: Andrew Morehouse
          Queensgate House
          South Church Street, Grand Cayman
          Cayman Islands
          Tel: (345) 949 9876
          Fax: (345) 949 1986


AQR GLOBAL: Will Hold Final Shareholders Meeting on Aug. 24
-----------------------------------------------------------
AQR Global Asset Allocation Offshore Fund (EUR) Ltd. will hold
its final shareholders meeting on Aug. 24, 2007, at 10:00 a.m.,
at:

          Queensgate House
          South Church Street, Grand Cayman
          Cayman Islands

These agendas will be taken during the meeting:

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

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

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

The liquidator can be reached at:

          Ogier
          Attention: Andrew Morehouse
          Queensgate House
          South Church Street, Grand Cayman
          Cayman Islands
          Tel: (345) 949 9876
          Fax: (345) 949 1986


AQR GLOBAL ARBITRAGE: Final Shareholders Meeting Is on Aug. 24
--------------------------------------------------------------
AQR Global Arbitrage Offshore Fund (USD) Ltd. will hold its
final shareholders meeting on Aug. 24, 2007, at 10:00 a.m., at:

          Queensgate House
          South Church Street, Grand Cayman
          Cayman Islands

These agendas will be taken during the meeting:

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

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

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

The liquidator can be reached at:

          Ogier
          Attention: Andrew Morehouse
          Queensgate House
          South Church Street, Grand Cayman
          Cayman Islands
          Tel: (345) 949 9876
          Fax: (345) 949 1986


AQR GLOBAL FIXED: Sets Final Shareholders Meeting for Aug. 24
-------------------------------------------------------------
AQR Global Fixed Income Offshore Fund (Usd) Ltd. will hold its
final shareholders meeting on Aug. 24, 2007, at 10:00 a.m., at:

          Queensgate House
          South Church Street, Grand Cayman
          Cayman Islands

These agendas will be taken during the meeting:

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

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

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

The liquidator can be reached at:

          Ogier
          Attention: Andrew Morehouse
          Queensgate House
          South Church Street, Grand Cayman
          Cayman Islands
          Tel: (345) 949 9876
          Fax: (345) 949 1986


AQR GLOBAL FIXED INCOME: Final Shareholders Meeting on Aug. 24
--------------------------------------------------------------
AQR Global Fixed Income Offshore Fund (USD) II Ltd. will hold
its final shareholders meeting on Aug. 24, 2007, at 10:00 a.m.,
at:

          Queensgate House
          South Church Street, Grand Cayman
          Cayman Islands

These agendas will be taken during the meeting:

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

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

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

The liquidator can be reached at:

          Ogier
          Attention: Andrew Morehouse
          Queensgate House
          South Church Street, Grand Cayman
          Cayman Islands
          Tel: (345) 949 9876
          Fax: (345) 949 1986


AQR GLOBAL YIELD: Holding Final Shareholders Meeting on Aug. 24
---------------------------------------------------------------
AQR Global Yield Curve Offshore Fund (USD) Ltd. will hold its
final shareholders meeting on Aug. 24, 2007, at 10:00 a.m., at:

          Queensgate House
          South Church Street, Grand Cayman
          Cayman Islands

These agendas will be taken during the meeting:

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

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

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

The liquidator can be reached at:

          Ogier
          Attention: Andrew Morehouse
          Queensgate House
          South Church Street, Grand Cayman
          Cayman Islands
          Tel: (345) 949 9876
          Fax: (345) 949 1986


ARCEL FINANCE: Sets Final Shareholders Meeting for Aug. 24
----------------------------------------------------------
Sama Developments Inc. will hold its final shareholders meeting
on Aug. 24, 2007, at 9:30 a.m., at the registered 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


AVALON RE: Fitch Upgrades Long-Term Credit Ratings to BB+
---------------------------------------------------------
Fitch Ratings has upgraded the long-term credit ratings of the
class A variable-rate notes of Avalon Re Ltd. to 'BB+' from
'BB-' and affirmed the LTCR of the class B and C notes.  In
addition, Fitch has revised the distressed recovery ratings of
the Class B notes to 'DR3' from 'DR4' and to 'DR4' from 'DR5'
for the class C notes.  The rating actions affect US$405 million
of Avalon Re variable-rate notes.

Avalon Re provides coverage to Oil Casualty Insurance, Ltd., a
Bermuda-based insurer, on a three-year excess of loss
reinsurance contract that attaches when losses exceed US$300
million.  The upgrade reflects a significant decline in the
estimated probability of loss for the class A variable rate
notes.  The estimated loss statistics have declined primarily
because the second year of the three-year transaction passed
without the occurrence of additional loss events. (However, OCIL
incurred US$10 million of loss development on events that
occurred prior to June 1, 2006).  One year ago, the class A note
holders were exposed if an additional three events occurred in
the next two years.  Today, the class A note holders are exposed
if three events occur in the next year.  The estimated expected
loss statistics of both the class B and C notes also declined.  
While those changes were not significant enough to change the
LTCR of those note classes, the recovery prospects improved
sufficiently to warrant changes in the DR ratings of the two
classes.

The losses recorded to date by OCIL have not exceeded the
attachment point and, therefore, have not been ceded to Avalon
Re and have not resulted in a current loss of principal or
interest to note holders.  The Class A, B and C note holders are
exposed to the third, fourth and fifth US$150 million loss, (or
any portion thereof), respectively, occurring within the three-
year risk period.  The notes pay 90% (i.e., up to US$135
million) of the loss incurred by OCIL.

Fitch continues to monitor OCIL's insurance losses.  If OCIL
incurs additional insurance losses, note holders will suffer a
loss.  Holders of the class C notes will suffer a loss first. If
the class C notes are exhausted by subsequent losses, holders of
the class B notes will then suffer a loss, followed by holders
of the class A notes if the Class B notes are exhausted.  If a
loss of any magnitude occurs, Fitch will likely downgrade the
class C notes.  Fitch may also downgrade the class A or B notes,
depending on the magnitude of the loss and the time remaining
before the notes' maturities.

Avalon Re is a Cayman Islands-domiciled insurance company formed
solely to issue the variable-rate notes, enter into a
reinsurance contract with OCIL, and to conduct activities
related to the notes' issuance.  The variable-rate notes are
insurance-linked collateralized securities that will suffer a
loss of principal if OCIL's aggregate insured losses exceed a
specified threshold that varies by note class.

The affected notes are:

Avalon Re, Ltd.

  -- US$135 million Class A variable rate notes due June 6, 2008  
     upgraded to 'BB+' from 'BB-';

  -- US$135 million Class B variable rate notes due June 6, 2008  
     affirmed at 'CCC'; distressed recovery rating revised to   
     'DR3' from 'DR4';

  -- US$135 million Class C variable rate notes due June 6, 2008  
     affirmed at 'CCC-'; distressed recovery rating revised to  
     'DR4' from 'DR5'.

Avalon Re is a Cayman Islands-domiciled insurance company formed
solely to issue the variable-rate notes, enter into a
reinsurance contract with OCIL, and to conduct activities
related to the notes' issuance.  The variable-rate notes are
insurance-linked collateralized securities that will suffer a
loss of principal if OCIL's aggregate insured losses exceed a
specified threshold that varies by note class.


C60 CAPITAL: Will Hold Final Shareholders Meeting on Aug. 24
------------------------------------------------------------
C60 Capital International Ltd. will hold its final shareholders
meeting on Aug. 24, 2007, at 10:00 a.m., at the registered
office of the company.

These agendas will be taken during the meeting:

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

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

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

The liquidator can be reached at:

          Lawrence Edwards
          Attention: Miguel Brown
          P.O. Box 258
          Grand CaymanKY1-1104
          Cayman Islands
          Tel: (345) 914 8665
          Fax: (345) 945 4237


CABLE & WIRELESS: Loses Lawsuit Against Digicel
-------------------------------------------------
Cay Compass News Online reports that Cable & Wireless has lost a
lawsuit against Digicel.

Cay Compass relates that Chief Justice Anthony Smellie of the
Grand Court of the Cayman Islands rejected Cable & Wireless'
attempts to challenge a December 2006 decision of the
Information and Communications Technology Authority.  The
company was fined.

According to Cay Compass, Cable & Wireless was seeking to
challenge the Mobile Termination Rate agreement it has with
Digicel.  

Cay Compass notes that the ICTA rejected Cable & Wireless'
request for determination of various matters relating to the
MTR.  The company sought to judicially review this decision of
ICTA and made an "ex-parte application to the Grand Court in
February 2007.  Leave was granted to Cable & Wireless at the ex-
parte stage by the Justice Smellie."  The leave allowed the
company to challenge ICTA's decision through the courts.

The report says that the ICTA and Digicel "issued summonses,"
asking the court to cancel the leave granted to Cable &
Wireless.  The ICTA and Digicel claimed that Cable & Wireless
failed "to make full disclosure of material information to the
court at the ex-parte stage."  They also said that Cable &
Wireless lacked a credible case to seek to challenge the ICTA
decision.  They accused the company of delay in seeking judicial
review on matters that date back to July 2004.

Digicel Cayman Chief Executive Officer John D. Buckley said in a
press release, "Digicel is very pleased that the Grand Court has
ruled in favor of Digicel and the Authority and has rejected
C&W's [Cable & Wireless] application which sought to challenge
an agreement freely entered into between Digicel and C&W in July
2004 and one that C&W have relied on to their own ends on
numerous occasions subsequently."

Cay Compass says that the court ruled that Cable & Wireless
failed in material disclosure and it had no "arguable case."  
The court also determined that Cable & Wireless was guilty of
delay as maintained by ICTA and Digicel.

Cable & Wireless said in a press release, "We are disappointed
with the decision made by the court and believe it is not in the
best interest of our landline and mobile customers who will
continue to pay the high prices and interconnection rates
advocated by Digicel.  We believe in giving customers the best
possible deal and we will continue to look for avenues to
address this matter."

Cable and Wireless will continue to seek ways to challenge an
ICTA decision that was upheld in Grand Court, Cay Compass
states.

                    About Cable & Wireless

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

                        *     *     *

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

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

* Issuer: Cable & Wireless Plc

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

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


DIAMOND LINE: Sets Final Shareholders Meeting for Aug. 24
---------------------------------------------------------
Diamond Line International Ltd. will hold its final shareholders
meeting on Aug. 24, 2007, at 11:00 a.m., at the office of the
company.

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          Bernard Mcgrath
          Caledonian House
          P.O. Box 1043
          George Town, Grand Cayman
          Cayman Islands
          Tel 9490050
          Fax 9498062


DIAMOND LINE: Proofs of Claim Must be Filed by Aug. 17
------------------------------------------------------
Diamond Line International Ltd.'s creditors are given until
Aug. 17, 2007, to prove their claims to Bernard McGrath, 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.

Diamond Line'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:

        Bernard Mcgrath
        Caledonian House
        P.O. Box 1043
        George Town, Grand Cayman
        Cayman Islands
        Tel: 9490050
        Fax: 9498062


DIGICEL: Wins in Lawsuit Against Cable & Wireless
-------------------------------------------------
Cay Compass News Online reports that Digicel has won a lawsuit  
against Cable & Wireless.

Cay Compass relates that Chief Justice Anthony Smellie of the
Grand Court of the Cayman Islands rejected Cable & Wireless'
attempts to challenge a December 2006 decision of the
Information and Communications Technology Authority.  Cable &
Wireless was fined.

According to Cay Compass, Cable & Wireless was seeking to
challenge the Mobile Termination Rate agreement it has with
Digicel.  

Cay Compass notes that the ICTA rejected Cable & Wireless'
request for determination of various matters relating to the
MTR.  The company sought to judicially review this decision of
ICTA and made an "ex-parte application to the Grand Court in
February 2007.  Leave was granted to Cable & Wireless at the ex-
parte stage by the Justice Smellie."  The leave allowed the
company to challenge ICTA's decision through the courts.

The report says that the ICTA and Digicel "issued summonses,"
asking the court to cancel the leave granted to Cable &
Wireless.  The ICTA and Digicel claimed that Cable & Wireless
failed "to make full disclosure of material information to the
court at the ex-parte stage."  They also said that Cable &
Wireless lacked a credible case to seek to challenge the ICTA
decision.  They accused the company of delay in seeking judicial
review on matters that date back to July 2004.

Digicel Cayman Chief Executive Officer John D. Buckley said in a
press release, "Digicel is very pleased that the Grand Court has
ruled in favor of Digicel and the Authority and has rejected
C&W's [Cable & Wireless] application which sought to challenge
an agreement freely entered into between Digicel and C&W in July
2004 and one that C&W have relied on to their own ends on
numerous occasions subsequently."

Cay Compass says that the court ruled that Cable & Wireless
failed in material disclosure and it had no "arguable case."  
The court also determined that Cable & Wireless was guilty of
delay as maintained by ICTA and Digicel.

Cable & Wireless said in a press release, "We are disappointed
with the decision made by the court and believe it is not in the
best interest of our landline and mobile customers who will
continue to pay the high prices and interconnection rates
advocated by Digicel.  We believe in giving customers the best
possible deal and we will continue to look for avenues to
address this matter."

Cable and Wireless will continue to seek ways to challenge an
ICTA decision that was upheld in Grand Court, Cay Compass
states.

                   About Cable & Wireless

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

                    About Digicel Group

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.


MARATHON PETROLEUM: Final Shareholders Meeting Is on Aug. 21
------------------------------------------------------------
Marathon Petroleum Congo Ltd. will hold its final shareholders
meeting on Aug. 21, 2007, at 10:00 a.m., at:

          Walker House
          87 Mary Street, George Town
          KY1-9001, Grand Cayman
          Cayman Islands

These agendas will be taken during the meeting:

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

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

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

The liquidator can be reached at:

          Yvonne Kunetka
          Marathon Oil Company
          5555 San Felipe Road
          Houston, Texas
          77056-2723
          U.S.A.


MORANE INVESTMENTS: Sets Final Shareholders Meeting for Aug. 24
---------------------------------------------------------------
Morane Investments Ltd. will hold its final shareholders meeting
on Aug. 24, 2007, at 9:00 a.m., at the registered 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


QR GLOBAL: Final Shareholders Meeting Is on Aug. 24
---------------------------------------------------
QR Global Asset Allocation Offshore Fund (USD) III Ltd. will
hold its final shareholders meeting on Aug. 24, 2007, at 10:00
a.m., at:

          Queensgate House
          South Church Street, Grand Cayman
          Cayman Islands

These agendas will be taken during the meeting:

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

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

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

The liquidator can be reached at:

          Ogier
          Attention: Andrew Morehouse
          Queensgate House
          South Church Street, Grand Cayman
          Cayman Islands
          Tel: (345) 949 9876
          Fax: (345) 949 1986


ROYALTY INCOME: Will Hold Final Shareholders Meeting on Aug. 24
---------------------------------------------------------------
Royalty Income Fund Of North America (Offshore) Ltd. will hold
its final shareholders meeting on Aug. 24, 2007, at 10:00 a.m.,
at the registered 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


SAFEWRITE (CAYMAN): Sets Final Shareholders Meeting for Aug. 24
---------------------------------------------------------------
Safewrite (Cayman Islands) Ltd. will hold its final shareholders
meeting on Aug. 24, 2007, at 9:30 a.m., at:

          Caledonian House
          69 Dr. Roy's Drive, Grand Cayman
          Cayman Islands

These agendas will be taken during the meeting:

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

   2) approve the report of the joint liquidators; and

   3) approve the remuneration of the joint liquidators.


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:

          Bernard Mcgrath
          Caledonian House
          P.O. Box 1043
          George Town, Grand Cayman
          Cayman Islands
          Tel 9490050
          Fax 9498062


SAFEWRITE (CAYMAN): Proofs of Claim Must be Filed by Aug. 17
------------------------------------------------------------
Safewrite (Cayman Islands) Ltd.'s creditors are given until
Aug. 17, 2007, to prove their claims to Bernard McGrath and
David Barnewall, 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.

Safewrite's shareholders agreed on July 9, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidator can be reached at:

        Bernard Mcgrath
        Caledonian House
        P.O. Box 1043
        George Town, Grand Cayman
        Cayman Islands
        Tel: 9490050
        Fax: 9498062


SAMA DEVELOPMENTS: Sets Final Shareholders Meeting for Aug. 24
--------------------------------------------------------------
Sama Developments Inc. will hold its final shareholder meeting
on Aug. 24, 2007, at the registered 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;

   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; and

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

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

The liquidator can be reached at:

          Commerce Corporate Services Limited
          P.O. Box 694
          George Town, Grand Cayman
          Cayman Islands
          Tel: 949 8666
          Fax: 949 7904


TAIB FUNDS: Proofs of Claim Must be Filed by Aug. 22
----------------------------------------------------
Taib Funds Ltd.'s creditors are given until Aug. 22, 2007, to
prove their claims to Reid Services Limited, 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.

Taib Funds shareholders agreed on July 4, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidator can be reached at:

        Reid Services Limited
        Clifton House
        75 Fort Street
        P.O. Box 1350
        George Town, Grand Cayman KY1-1108
        Cayman Islands


TAIB FUNDS: Sets Final Shareholders Meeting for Aug. 22
-------------------------------------------------------
Taib Funds Ltd. will hold its final shareholders
meeting on Aug. 22, 2007, at 10:00 a.m., at:

          Clifton House, 75 Fort Street,
          Grand Cayman, Cayman Islands

These agendas will be taken during the meeting:

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

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

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

The liquidator can be reached at:

          Reid Services Limited
          Clifton House, 75 Fort Street
          P.O. Box 1350
          Grand Cayman KY1-1108
          Cayman Islands


WHITE RIVER: Will Hold Final Shareholders Meeting on Aug. 24
------------------------------------------------------------
White River Offshore Ltd. will hold its final shareholders
meeting on Aug. 24, 2007, at 10:00 a.m.

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:

          Kenneth L. Edlow
          White River Offshore, Ltd.
          c/o Maples and Calder
          P.O. Box 309
          Ugland House
          South Church Street, George Town
          Grand Cayman
          Cayman Islands




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


ECOPETROL: Barrancabermeja Plant's Operations Halt
--------------------------------------------------
Colombian state-run oil firm Ecopetrol's spokesperson Alexandra
Santamaria told Dow Jones Newswires that the country's largest
refinery in Barrancabermeja has stopped operating.

Ms. Santamaria explained to Dow Jones that the local electricity
plant that powers the Barrancabermeja refinery experienced an
outage.

The power disruption lasted for an hour.  However, the
Barrancabermeja refinery will be fully operating 18 to 24 hours
after power was reestablished, Dow Jones notes, citing Ms.
Santamaria.

Ms. Santamaria commented to Dow Jones, "The country won't suffer
any disruption in fuel supply because we have enough inventory
to secure supply for several days."

No refinery worker was injured and there was no pollution, other
than exceptional smokes from burning part of the oil being
processed when the refinery stopped operating, Dow Jones states,
citing Ms. Santamaria.

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'.




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


ALCATEL-LUCENT: Receives Certificate from Quality Management
------------------------------------------------------------
Alcatel-Lucent's W-CDMA portfolio has received the TL 9000
Certification from the Quality Management Institute, an
accredited QuEST Forum TL 9000 registrar.  TL 9000 standards
establish a common set of quality management requirements and
measurements for telecommunications hardware, software and
services.

This TL 9000 certification -- achieved just months after the
completion of the Alcatel-Lucent merger and its acquisition of
Nortel's W-CDMA assets -- highlights the speed and success of
the integration of three distinct portfolios into one of the
industry's most comprehensive and high-quality W-CDMA product
lines.  The certification also provides validation that the
integration of processes, systems and practices will help ensure
that the portfolio offers best-in-class reliability and quality.

"This certification represents a tremendous achievement for
Alcatel-Lucent's wireless business," said Alain Biston,
president of Alcatel-Lucent's W-CDMA activities.  "It is no
small feat to bring together three different portfolios and
organizations, with locations around the world, in such a short
time-frame.  The fact that we were able to successfully complete
this rigorous certification program so quickly is a testament to
our unwavering commitment to delivering quality for our
customers."

TL 9000 certification covers a wide array of business functions,
including end-to-end sales, marketing, business development,
product management, program management, design, technology
introduction, quality and post-sales support activities.
Products covered under Alcatel-Lucent's W-CDMA TL 9000
certification included radio access base transceiver stations,
radio network controllers and network management system
offerings.
  
The audit also included business practices at Alcatel-Lucent
facilities around the world that support the W-CDMA portfolio.

Through the TL 9000 certification process, Alcatel-Lucent was
able to confirm that quality system and operations designed to
ensure the reliability of the W-CDMA portfolio were maintained
and in some cases strengthened during the integration process.

The TL 9000 standards build on International Standards
Organization's 9001 standards, incorporating additional
requirements and defining a set of quality measurements for
field-deployed products.  The TL 9000 standard was developed by
the QuEST Forum, an industry group made up of telecommunications
companies including service providers, infrastructure vendors,
second- and third-party suppliers and liaison bodies.  The
certification process helps ensure that communications networks
provide a high-quality experience for end-users.

                     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.


BANCO BANEX: Moody's Withdraws All Ratings After Merger
-------------------------------------------------------
Moody's Investors Service has withdrawn all of its ratings for
Banco Banex S.A., following its merger into Banco Superviellle.  

Banco Banex S.A. merged with Banco Supervielle S.A.on
July 1, 2007, and the combined entity will carry the name
Supervielle Banco.  Banco Banex S.A. held Ar$ 764.4 million in
assets and ARS444.5 million in deposits as of March 31, 2007.

These ratings were withdrawn:

  -- Bank financial strength rating: D-, Stable Outlook

  -- Long term local currency deposit rating: Ba2, Stable
     Outlook

  -- Short term local currency deposit rating: Not Prime, Stable
     Outlook

  -- National Scale Rating for local currency deposits: Aa2.ar

  -- Long term foreign currency deposit rating: Caa1, Stable
     Outlook

  -- Short term foreign currency deposit rating: Not Prime,
     Stable Outlook

  -- National Scale Rating for foreign currency deposits: Ba1.ar

Banco Banex is a subsidiary of Grupo Financiero Banex -- the
fifth largest financial group in Costa Rica.  Panama's Grupo
Banistmo currently controls Banex.


COVANTA HOLDING: Earns US$37.7 Million in Quarter Ended June 30
---------------------------------------------------------------
Covanta Holding Corporation had net income of US$37.7 million
for the second quarter ended June 30, 2007, as compared with
US$51.2 million for the second quarter ended June 30, 2006.

Total operating revenues that grew 6% to US$355 million for the
three months ended June 30, 2007, up from US$334 million in the
prior year comparative period.

The company's domestic waste and energy operating revenues grew
5% to US$301 million, driven primarily by contractual service
fee escalations, construction revenues related to the
Hillsborough County facility expansion and two facilities added
to the company's portfolio this year; the Harrisburg Energy-
from-Waste facility and the Holliston transfer station.  
International revenues of US$52 million grew by 17% primarily
due to higher electricity sales at both Indian facilities.

                      Six Months Results

For the six months ended June 30, 2007, total company operating
revenues rose 7% to US$685 million.  Covanta Energy's net income
for the six months ended June 30, 2007, was US$19.8 million.

At June 30, 2007, the company listed US$4.3 billion total
assets, US$3.4 billion total liabilities, US$43.6 million
minority interest, and US$895.3 million stockholders' equity.

A full-text copy of the company's second quarter report is
available for free at http://ResearchArchives.com/t/s?21d6

"The second quarter was marked by solid operating performance
and tangible progress on our growth initiatives that position us
to take advantage of promising opportunities around the world,"
said Anthony Orlando, president and chief executive officer of
Covanta. "Notably, we signed a 10 year agreement to operate the
Harrisburg Energy-from-Waste facility, completed our joint
venture to enter the Energy-from-Waste market in China,
announced the acquisition of two biomass renewable energy
facilities in California, and received a Letter of Intent to
design, build and operate a 1,700 ton per day Energy-from-Waste
facility in Dublin, Ireland."

                        About Covanta

Headquartered in Fairfield, New Jersey, Covanta Energy Corp.
(NYSE: CVA) -- http://www.covantaenergy.com/-- is a publicly   
traded holding company whose subsidiaries develop, own or
operate power generation facilities and water and wastewater
facilities in the United States and abroad.  Covanta has
operations in the Philippines, China, Costa Rica, India, and
Bangladesh.

                        *    *    *

As reported in the Troubled Company Reporter on Jan. 24 2007,
Standard & Poor's Ratings Services assigned a 'BB-' corporate
credit rating to Covanta Holding Corp. and a 'B' issue rating to
the company's US$325 million senior unsecured convertible bonds.
At the same time, Standard & Poor's also raised the corporate
credit rating on subsidiary Covanta Energy Co., to 'BB-' from
'B+' and assigned a 'BB-' issue rating, with a '2' recovery
rating (reflecting 80% to 100% of recovery in a default
scenario) to its proposed US$1.3 billion credit facilities
consisting of a US$680 million, first-lien secured term loan,
USUS$320 million in funded LOCs, and US$300 million in revolving
credit facilities.  S&P said the outlook remains stable.

Moody's Investors Service also assigned a Ba2 rating to Covanta
Energy Corp.'s new US$1.3 billion senior secured credit facility
and a B1 rating to Covanta Holding Corp.'s US$325 million
convertible debentures.  The Ba2 rating assigned to the new
credit facility is effectively a two-notch upgrade from the B1
rating assigned to Covanta's current first lien credit facility.
With the convertible debenture offering, Moody's has reassigned
the Corporate Family Rating to Covanta Holding Corp. from its
subsidiary, Covanta Energy Corp.  Concurrently, the CFR has been
upgraded to Ba2 from Ba3.




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


PAYLESS SHOESOURCE: S&P Cuts Rating on US$200-Mil. Notes to B-
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its rating on Payless
ShoeSource Inc. to 'B+' from 'BB-'.  At the same time, the
rating on the Topeka, Kan.-based company's US$200 million senior
subordinated notes was lowered to 'B-' from 'B'.  All ratings
have been removed from CreditWatch, where they were placed with
negative implications on May 23, 2007.  The outlook is stable.
     
S&P also assigned its bank loan and recovery ratings to Payless'
proposed US$750 million senior secured term loan maturing 2014.
The facility is rated 'BB-', one notch higher than the corporate
credit rating on the company, with a recovery rating of '2',
reflecting the expectation of substantial recovery (70%-90%) of
principal in the event of default.  Proceeds from the term loan
will be used to fund the acquisition of The Stride Rite Corp.
The company will also have a US$350 million asset-based revolver
maturing in 2012, which is unrated.
      
"The downgrade reflects the deterioration of cash flow
protection measures as both the Stride Rite and Collective
Licensing International acquisitions add significant debt to the
company's balance sheet," explained Standard & Poor's credit
analyst David Kuntz.  There is also execution risk in
integrating both acquisitions over the medium term.

Headquartered in Topeka, Kansas, Payless ShoeSource Inc.
(NYSE:PSS) -- http://www.payless.com/-- is a family footwear
specialty retailer with 4,605 retail stores, as of fiscal
yearend Jan. 28, 2006 (fiscal 2005), including 22 stores not
open for operations.  The Company's Payless ShoeSource retail
stores in the United States, Canada, the Caribbean, Central
America, South America and Japan sold 182 million pairs of
footwear, in fiscal 2005.  The Company operates its business in
two segments -- Payless Domestic and Payless International.  The
Payless Domestic segment includes retail operations in the
United States, Guam and Saipan.  The Payless International
segment includes retail operations in Canada; Puerto Rico; the
United States Virgin Islands; Japan; the South American Region,
which includes Ecuador, and the Central American Region, which
includes Costa Rica, Guatemala, El Salvador, the Dominican
Republic, Honduras, Nicaragua, Panama and Trinidad and Tobago.




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


* ECUADOR: Rafael Correa OKs Preliminary Reform to Mining Law
-------------------------------------------------------------
Ecuadorian President Rafael Correa has ratified a preliminary
reform to the mining law while the constituent assembly is still
being created, Business News Americas reports, citing former
deputy mining minister Jorge Jurado.

Reuters says that Jose Serrano has been appointed as the new
deputy mining minister.  He is a lawyer who acted as economy
minister in the past administration.

Mr. Jurado commented to BNamericas, "This provisional reform
touches on the 12 points that need altering most.  We can't wait
for the constituent assembly to look at the issue because that
could be at the end of 2007 or next year.  I hope the new
minister -- Galo Chiriboga -- is able to continue that process.  
I presented my resignation because there are new authorities
that are sure to have new policies and I think it's necessary to
make room for them."

BNamericas relates that about 78.1% of Ecuadorian voters agreed
to holding a constituent assembly, "an initiative put forth by
President Correa."  Elections to choose the 130 constituents
will be in October.  The assembly will convene in November.

Minister Chiriboga said in a statement that he will promote an
in-depth review and reform of the mining law to gain control
over the sector.

"The current mining law allows concessions to be awarded at will
with little regulation and in a way that encourages
speculation," BNamericas says, citing Minister Chiriboga.  The
current law doesn't include clauses that allows a concession to
be cancelled for environmental or social problems.

Minister Chiriboga told BNamericas, "The national government's
goal is to stop the country from hemorrhaging concessions like
the current mining law allows.  During the present
administration, the public mining authority has legally awarded
399 new concessions."

According to Mr. Chiriboga's statement, there are over 4,000
concessions in Ecuador over an area of almost three million
hectares, which is 10% of national territory.  Barely 16% of the
concessions are producing.  About 84% of the concessions are
inactive or being explored.

                        *     *     *

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

In addition, these ratings were downgraded:

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

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

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

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




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


* EL SALVADOR: State Firm Eyes Start of Talnique's 2nd Phase
------------------------------------------------------------
El Salvador's state-run power firm Comision Ejecutiva
Hidroelectrica expects to start the second phase of the Talnique
thermo plant, news daily La Prensa Grafica reports.

Comision Ejecutiva head Nicolas Salume told La Prensa that the
firm wants to directly contract Finnish engineering firm
Wartsila to supply the turbines after declaring a tender invalid
when bids failed to comply with technical requirements.

Business News Americas relates that Mr. Salume said Spanish
consultancy Socoin was hired to review Wartsila's participation.

According to BNamericas, about US$45 million will be invested in
the expansion with first power supplies due to start in November
2008.

Comision Ejecutvia started Talnique's operations in January
2007.  Wartsila was the head contractor for the project,
BNamericas states.

As reported in the Troubled Company Reporter-Latin America on
July 27, 2007, Standard & Poor's Ratings Services affirmed its
'BB+' long- and 'B' short-term sovereign credit ratings on the
Republic of El Salvador.  S&P said the outlook remained stable.




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


* HONDURAS: Facing Fines Due to Solid Waste Mismanagement
---------------------------------------------------------
The Honduran government faces fines under its free trade accord
with the US for mismanaging solid waste in the country, news
daily La Tribuna reports.

Honduran environment ministry Serna management director Dina
Morely told La Tribuna that the fines could total million
dollars if the nation fails to comply with article 17 of the
free trade pact.

According to La Tribuna, Article 17 calls on Honduras to
implement environmental standards for its management of solid
and liquid waste.

"We know of one case in which Guatemala has been sanctioned for
not complying with environmental norms, which apply to
businesses exporting to the US," Ms. Morely told Business News
Americas.

                        *     *     *

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


CENTURY ALUMINUM: Incurs US$60.7 Mil. Net Loss in Second Quarter
----------------------------------------------------------------
Century Aluminum Company reported a net loss of US$60.7 million
for the second quarter of 2007.  Reported second quarter results
were negatively impacted by an after-tax charge of US$125.1
million for mark-to-market adjustments on forward contracts that
do not qualify for cash flow hedge accounting and by a non-cash
after-tax charge of US$2 million for the early extinguishment of
debt.  Quarterly results were positively impacted by a tax
benefit of US$4.3 million related to the increase in the
carrying amount of deferred tax assets as a result of a state
tax law change.  The dilutive effect of the convertible notes,
options and service-based awards would reduce basic EPS by
US$0.13.

In the second quarter of 2006, the company reported net income
of US$45.8 million, which included an after-tax charge of
US$19.5 million for mark-to-market adjustments on forward
contracts that do not qualify for cash flow hedge accounting.

                Second Quarter 2007 Highlights

-- Strong operating earnings were generated on revenues of
    US$464 million, which increased 3.7% from record levels set
    in the first quarter of 2007.

-- All primary aluminum facilities operated at or above
    capacity.

-- The first cells of the 40,000 tonne expansion of the
    Grundartangi, Iceland smelter were energized on July 2.  The
    project remains on schedule and budget for a fourth quarter,
    2007 completion.

-- Century signed a definitive agreement with Icelandic
    electric power suppliers Hitaveita Sudurnesja and Orkuveita
    Reykjavikur for the supply of electrical power to the new
    aluminum smelter project to be built near Helguvik, Iceland.  
    These contracts provide for the supply of power for
    approximately 250,000 tons of aluminum production.

-- A memorandum of understanding was signed with the Guangxi
    Investment Group Company to explore the feasibility of
    developing a project including a high purity aluminum
    reduction plant and related bauxite and alumina facilities
    in the Guangxi Zhuang Autonomous Region in China.
   
Sales in the second quarter of 2007 were US$464 million,
compared with US$406 million in the second quarter of 2006.  
Shipments of primary aluminum for the quarter totaled 188,650
tons compared with 171,715 tons in the year-ago quarter,
reflecting the impact of the Grundartangi expansion to 220,000
tons, which was completed in the fourth quarter of 2006.

For the first half of 2007, the company reported net income of
US$3.6 million, which includes an after-tax charge of US$125.1
million for mark-to-market adjustments on forward contracts that
do not qualify for cash flow hedge accounting.

Sales in the first six months of 2007 were US$911.7 million
compared with US$752.9 million in the same period of 2006.
Shipments of primary aluminum for the first six months of 2007
were 373,272 tonnes compared with 328,666 tonnes for the
comparable 2006 period.

At June 30, 2007, the company's balance sheet showed total
assets of US$2.5 billion, total liabilities of US$1.9 billion,
and total stockholders' equity of US$601.2 million.

The company held unrestricted cash of US$187.7 million and
restricted cash of US$2 million at June 30, 2007.

"We made important progress on our long-term initiatives during
the quarter," said president and chief executive officer Logan
W. Kruger.  "The continuing expansion of Grundartangi remains on
schedule and budget.  At our Helguvik greenfield project, we
signed contracts with each of our two power supply partners and
advanced the various permitting processes.  In addition, we
raised equity capital for the plant's construction and became
the first U.S. company to list its shares on the stock exchange
in Iceland."

                  About Century Aluminum Company

Headquartered in Monterey, California, Century Aluminum Company
(NASDAQ:CENX) -- http://www.centuryca.com/-- owns and operates  
a 244,000 mtpy plant at Hawesville, Kentucky; a 170,000 mtpy
plant at Ravenswood, West Virginia; and a 90,000 mtpy plant at
Grundartangi, Iceland.  The company also owns a 49.67% interest
in a 222,000 mtpy reduction plant at Mt. Holly, South Carolina.
ALCOA Inc. owns the remainder of the plant and is the operating
partner.  Century also holds a 50% share of the 1.25 million
mtpy Gramercy Alumina refinery in Gramercy, Louisiana and
related bauxite assets in Jamaica.

                        *     *     *

Standard & Poor's placed the Company's long-term local and
foreign issuer credit ratings at BB- with a stable outlook on
March 13, 2001.

As reported in the Troubled Company Reporter on Oct. 19, 2006,
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the North American Metals & Mining sectors, the
rating agency confirmed its Ba3 Corporate Family Rating for
Century Aluminum Company.

Additionally, Moody's revised its probability-of-default ratings
and assigned loss-given-default ratings on these debentures:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$250 Million
   7.5% Guaranteed
   Senior Unsecured
   Notes due 2014         Ba3      B1      LGD5       77%

   US$175 Million
   1.75% Convertible
   Guaranteed
   Senior Unsecured
   Notes due 2024         Ba3      B1      LGD5       77%


GOODYEAR TIRE: Earns US$56 Million in Second Quarter of 2007
------------------------------------------------------------
The Goodyear Tire & Rubber Company reported second quarter net
income of US$56 million, compared to US$2 million last year.   

The company's record second quarter tire business sales of
US$4.9 billion, up 4% from last year offsetting softer
conditions in several key markets with a richer product mix.  

The sales improvement reflects the strength of Goodyear's new
product engine as well as the performance of the company's three
emerging markets tire businesses, which increased sales 15% over
2006.  Each of these three businesses achieved record quarterly
sales.

This growth, along with currency-driven sales gains in the
European Union Tire business, offset a 3% decline in North
American Tire sales, primarily due to the company's exit from
certain segments of the private label tire business along with
softer original equipment and commercial replacement markets.

"Our strong second quarter performance demonstrates successful
execution against our strategies to improve our business and
product mix as well as the early stage benefits of a lower cost
structure," Robert J. Keegan, chairman and chief executive
officer, said.  "With the actions we have taken the past four
and a half years, we have created strong platforms for growth
going forward.  Likewise, our improving balance sheet gives us
the flexibility to increase investments aimed at growing our
core consumer and commercial tire businesses."

Total segment operating income from continuing operations was
US$309 million, up 32% from the year-ago period, driven by
significant improvement in North American Tire.  All five of the
company's regional tire businesses achieved higher segment
operating income compared to the second quarter of 2006, with
three setting records.  Improved pricing and product mix
of approximately US$155 million in the second quarter of 2007
more than offset increased raw material costs of approximately
US$55 million.

Second quarter income from continuing operations was US$29
million compared to a 2006 loss from continuing operations of
US$33 million.  All per share amounts are diluted.

The 2007 quarter was also impacted by after-tax debt retirement
expenses of US$47 million, rationalization and accelerated
depreciation costs of US$15 million and a tax benefit to correct
deferred taxes in Colombia of US$11 million.  The second quarter
of 2006 included US$63 million in after-tax rationalization and
accelerated depreciation costs.

                      Business Segments

Asia Pacific Tire, Latin American Tire, European Union Tire and
Eastern Europe, Middle East and Africa Tire reported higher
year-over-year sales, with each setting a second quarter record.   
Additionally, record sales for any quarter were achieved by Asia
Pacific Tire, Latin American Tire and Eastern Europe, Middle
East and Africa Tire.

All five businesses had higher segment operating income compared
to last year, with Asia Pacific Tire, Latin American Tire and
Eastern Europe, Middle East and Africa Tire setting second
quarter records.  Segment operating income for Asia Pacific Tire
was a record for any quarter.

  North American Tire     Second Quarter      Six Months
  (in millions)           2007      2006      2007    2006
  -------------           --------------     --------------
  Tire Units              20.8      23.3      40.1     46.9
  Sales                 US$2,276  US$2,340  US$4,293  US$4,579
  Segment Operating
   Income                 53         6        33        49
  Segment Operating
   Margin                  2.3%      0.3%      0.8%      1.1%

North American Tire sales were down 3% compared to the 2006
period, primarily due to lower volume resulting from the
company's action to exit certain segments of the private label
tire business as well as weak commercial and original equipment
markets.  This was partially offset by market share gains in
higher-value branded tires, improved pricing and product mix and
higher sales in chemical and other tire related businesses.

Second quarter segment operating income increased 783% compared
to the 2006 period due to improved pricing and product mix of
US$69 million that more than offset increased raw material costs
of approximately US$25 million.

European Union Tire sales increased 6% over the 2006 period as a
result of improved pricing and product mix and a favorable
impact from currency translation of approximately US$80 million,
which more than offset lower volume.

Segment operating income increased 7% compared to the 2006
quarter as pricing and product mix improvements of US$34 million
more than offset US$6 million in higher raw material costs, as
well as increased selling, administrative and general expenses
and lower unit volume.

Eastern Europe, Middle East and Africa Tire sales were up 14%
compared to the 2006 period.  The increase resulted from
improved pricing and product mix and a favorable impact from
currency translation of approximately US$14 million that more
than offset lower unit volume.

Segment operating income improved 7% due to improved pricing and
product mix of US$27 million that more than offset US$2 million
in higher raw material costs.  Higher manufacturing and SAG
costs as well as lower volume also impacted the quarter.

Latin American Tire sales increased 18% from the second quarter
of 2006 due to higher unit volume, improved pricing and product
mix and a favorable impact from currency translation of
approximately US$23 million.

Segment operating income increased 8% from 2006 due to higher
unit volume and a favorable impact from currency translation of
approximately US$17 million, which offset higher manufacturing
costs.  Improved pricing and product mix of US$6 million
partially offset higher raw material costs of approximately
US$18 million.

Asia Pacific Tire sales were 14% higher than the 2006 period
primarily due to improved pricing and product mix and a
favorable impact from currency translation of approximately
US$37 million.

Segment operating income increased 46% in the 2007 quarter,
primarily due to improved pricing and product mix of US$19
million, which more than offset raw material cost increases of
approximately US$4 million.

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.




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


AMERICAN AXLE: Earns US$34 Million in 2007 Second Quarter
---------------------------------------------------------
American Axle & Manufacturing Holdings Inc. reported sales and
earnings for the second quarter of 2007.

Second Quarter 2007 highlights:

   -- Second quarter sales of US$916.5 million

   -- 3% year-over-year decline in total production volumes as
      compared to the second quarter of 2006

   -- Content-per-vehicle of US$1,318, approximately 8% higher
      than the prior year

   -- Gross profit of US$113.1 million, or 12.3% of sales

   -- Operating income of US$58.9 million, or 6.4% of sales

   -- Net earnings of US$34.0 million or US$0.64 per share

   -- Net cash provided by operating activities of US$224.8
      million

   -- Increased 2008 - 2012 new business backlog to
      approximately US$1.2 billion

AAM's earnings in the second quarter of 2007 were US$34.0
million or US$0.64 per share.  This compares to earnings of
US$20.4 million or US$0.40 per share in the second quarter of
2006.

AAM's earnings in the second quarter of 2007 reflect the impact
of special charges and other non-recurring operating costs of
US$7.0 million, or US$0.11 per share, primarily related to
incremental attrition program activity.  AAM's second quarter
earnings in 2007 also reflect the impact of an additional US$5.5
million charge, or US$.09 per share, for the write-off of
unamortized debt issuance costs and other costs related to the
prepayment of the US$250 million term loan due 2010.

AAM's earnings in the second quarter of 2006 included a one-time
non-cash charge of US$2.4 million, or approximately US$.03 per
share, to write off unamortized debt issuance costs related to
the cash conversion of approximately US$128.4 million of AAM's
Senior Convertible Notes due in 2024.

AAM's earnings in the second quarter of 2006 also reflect the
impact of an unfavorable tax adjustment of US$2.6 million, or
US$.05 per share, related to the settlement of foreign
jurisdiction tax liabilities.

"Through the first half of 2007, AAM is on track to achieve its
annual objectives for sales growth, margin expansion and free
cash flow generation," said AAM's Co-Founder, Chairman of the
Board & CEO Richard E. Dauch.  "Our solid operating performance
and strong cash flow in the second quarter of 2007 reflects
AAM's continuing emphasis on productivity gains, process
efficiencies and structural cost reductions.  We will continue
to focus on these and other initiatives as part of our long-term
strategic commitment to achieving sustainable global cost
competitiveness."

Net sales in the second quarter of 2007 were US$916.5 million as
compared to US$874.6 million in the second quarter of 2006.  
Customer production volumes for the full-size truck and SUV
programs AAM currently supports for GM and The Chrysler Group
were approximately the same as compared to the prior year.  AAM
estimates that customer production volumes for its mid-sized
truck and SUV programs were down 18% in the quarter on a year-
over-year basis.  Non-GM sales represented approximately 24% of
AAM's total sales in the second quarter of 2007.

AAM's content-per-vehicle is measured by the dollar value of its
product sales supporting GM's North American truck and SUV
platforms and The Chrysler Group's heavy duty Dodge Ram pickup
trucks.  In the second quarter of 2007, AAM's content-per-
vehicle increased approximately 8% to US$1,318 as compared to
US$1,216 in the second quarter of 2006.

Gross margin in the second quarter of 2007 was 12.3% as compared
to 10.3% in the second quarter of 2006.  Operating income was
US$58.9 million or 6.4% of sales in the quarter as compared to
US$40.5 million or 4.6% of sales in the second quarter of 2006.  
AAM's improved gross margin and operating income performance in
the second quarter of 2007 primarily reflects the impact of
higher sales, productivity gains and structural cost reductions
resulting from the special attrition program and other ongoing
restructuring actions.

Net sales in the first half of 2007 were US$1.7 billion,
approximately the same as the first half of 2006.  Gross margin
was 11.5% in the first half of 2007 as compared to 9.0% for the
first half of 2006.  Operating income for the first half of 2007
was US$94.8 million or 5.5% of sales as compared to
US$55.5 million or 3.2% of sales for the first half of 2006.

AAM's SG&A spending in the second quarter of 2007 was
US$54.2 million as compared to US$49.4 million in the second
quarter of 2006.  In the first half of 2007, AAM's SG&A spending
was US$103.1 million or 6.0% of sales as compared to US$97.9
million or 5.7% of sales in the first half of 2006.  This year-
over-year increase in AAM's SG&A expense was primarily
attributable to higher profit sharing accruals and higher stock-
based compensation expense due to increased profitability and
stock price appreciation.  AAM's R&D spending in the first half
of 2007 was approximately US$39.7 million as compared to US$40.1
million in the first half of 2006.

AAM defines free cash flow to be net cash provided by (or used
in) operating activities less capital expenditures and dividends
paid.  Net cash provided by operating activities in the first
half of 2007 was US$234.6 million as compared to US$99.7 million
in the first half of 2006.  Capital spending in the first half
of 2007 was down US$80.5 million on a year-over-year basis to
US$75.5 million.  Reflecting the impact of this activity and
dividend payments of US$15.8 million, AAM's free cash flow of
US$143.3 million in the first half of 2007 represents an
improvement of US$215.1 million as compared to the first half of
2006.

               2008-2012 New Business Backlog

AAM has increased its backlog of new and incremental
business by approximately US$400 million to an estimated
US$1.2 billion for programs launching in 2008 through 2012.

AAM measures its backlog of new and incremental business (new
business backlog) by the estimated annual sales value of
agreements with its customers to provide axles or other
driveline or drivetrain products for future product programs, as
well as incremental content or volume awards on existing
programs including customer requested engineering changes.  
AAM's new business backlog may be impacted by various
assumptions such as production volume estimates, changes in
program launch timing and fluctuation in foreign currency
exchange rates.

AAM's new business backlog reflects the company's successful
efforts to expand its product portfolio by adding all-wheel
drive applications for passenger cars and crossover vehicles,
expanded electronics integration and new drivetrain components
such as transfer cases and power transfer units.

Other highlights of AAM's US$1.2 billion new business backlog
include:

   -- Approximately 75% of the new business backlog has been
      sourced to AAM's non-U.S. facilities.  These awards will
      accelerate the expansion of AAM's low cost, high quality,
      and highly flexible manufacturing facilities in
      Guanajuato, Mexico; Changshu, China; Araucaria, Brazil;
      and Olawa, Poland.  These awards may also lead to the
      construction of new facilities in other foreign markets.

   -- Approximately half of the new business backlog relates to
      awards supporting rear-wheel-drive and all-wheel-drive
      passenger car and crossover vehicle applications.  These
      awards relate to programs to be launched by four different
      customers launching in at least four major regional
      markets.

   -- AAM will launch approximately two-thirds of the new
      business backlog in the 2008, 2009 and 2010 calendar
      years.  The balance of the backlog will launch in 2011 and
      2012.

   -- AAM has earned its first award from a major European-based
      global OEM to supply rear axles for a new global vehicle
      program.

   -- AAM has earned its first award from Chery Automobile Co.,
      Ltd. to produce rear-drive modules (RDM) for a 2009 model
      year crossover vehicle.

"AAM's world-class quality, warranty, delivery and launch
performance, and advanced technology are major differentiators
in today's global automotive supply market," said American Axle
& Manufacturing Co-Founder, Chairman of the Board & CEO, Richard
E. Dauch.  "The continued expansion of AAM's new business
backlog is evidence that we are successfully delivering on our
long-term strategic goals of expanding our product portfolio,
served markets, customer base and global manufacturing
footprint.  We are especially pleased with the growth in our
backlog of orders from new customers in fast-growing global
markets."

American Axle & Manufacturing Holdings, Inc. (NYSE:AXL)
-- http://www.aam.com/--  and its wholly-owned subsidiary,  
American Axle & Manufacturing, Inc. manufactures, engineers,
designs and validates driveline and drivetrain systems and
related components and modules, chassis systems and metal-formed
products for light trucks, sport utility vehicles and passenger
cars.  In addition to locations in the United States (in
Michigan, New York and Ohio), the company also has offices or
facilities in Brazil, China, Germany, India, Japan, Luxembourg,
Mexico, Poland, South Korea and the United Kingdom.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 12, 2007, Standard & Poor's Ratings Services assigned its
'BB' rating to American Axle & Manufacturing Inc.'s proposed
US$250 million senior unsecured term loan due 2012.  The parent
company, American Axle & Manufacturing Holdings Inc., is the
guarantor.  Proceeds are expected to be used to repay existing
debt.


BALLY TOTAL: Gets Requisite Votes for Pre-Packaged Ch. 11 Plan
--------------------------------------------------------------
Bally Total Fitness Holding Corp. disclosed Friday that it
received the requisite number of votes in favor of its pre-
packaged chapter 11 plan, Reuters reports.

With the receipt of the required votes, the company is expected
to file its pre-packaged chapter 11 plan with the U.S.
Bankruptcy Court for the Southern District of New York.

                     Treatment of Claims

As reported in the Troubled Company Reporter on June 29, 2007,
under the company's pre-packaged chapter 11 plan, these claims
are expected a 100% recovery:

     * Administrative Claims, estimated at US$24,704,600;
     * Priority Tax Claims, estimated at US$17,904,440;
     * Non-Tax Priority Claims, estimated at US$25,265,635;
     * Other Secured Claims, estimated at US$15,040,312;
     * Unimpaired Unsecured Claims, estimated at US$107,222,660;
       and
     * Lenders Claims, estimated at US$262,400,000.

Holders of Senior Notes, with claims estimated at
US$235,000,000, on the effective date, will receive the
Prepetition Senior Notes Indenture Amendment Fee and the New
Senior Second Lien Notes, which alter their contractual rights
as set forth in the New Senior Second Lien Notes Indenture.

Holders of Prepetition Senior Subordinated Notes, owed an
estimated US$323,041,667, and Holders of Rejection Claims
against Bally Total will receive:

    (a) New Subordinated Notes with a principal amount equal to
        24.8% of the amount of such Allowed Claim,

    (b) New Junior Subordinated Notes with a principal amount
        equal to 21.7% of the amount of such Allowed Claim,

    (c) 0.00093 shares of New Common Stock per US$1.00 of
        Allowed Claim and

    (d) Rights to purchase Rights Offering Senior Subordinated
        Notes with a principal amount equal to 27.9% of the
        amount of such Allowed Claim.

Holders of Rejection Claims against any of Bally's affiliates,
at the company's option, will receive either:

    (a) cash in an amount equal to the amount of the Claim,

    (b) other less favorable treatment to which the Holder and
        the Debtors agree or

    (c) quarterly installments over a 5 year period equal to the
        amount of the Claim plus interest at 12-3/8% per annum.

Holders of Subordinated Claims will receive nothing under the
plan.

On the Effective Date, the Old Equity Interests of Bally will be
canceled and the Holders will receive no distribution.

The Reorganized Debtors will retain the Interests they hold in
Affiliate Debtors.

A full-text copy of the Pre-Packaged Chapter 11 Plan and
Disclosure Statement may be viewed for free at:

               http://ResearchArchives.com/t/s?214a

                  About Bally Total Fitness

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, the United Kingdom, 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: Fails to Agree w/ Shareholders on Alternate Plan
-------------------------------------------------------------
Bally Total Fitness Holding Corp. was unable to reach an
agreement on an alternative restructuring plan proposed by a
group of shareholders, Reuters reports.

As reported in the Troubled Company Reporter on July 9, 2007,
the company received a letter from current shareholders
Liberation Investments, L.P., Liberation Investments, Ltd.,
Harbinger Capital Partners Master Fund I, Ltd. and Harbinger
Capital Partners Special Situations Fund L.P., which proposes an
alternate chapter 11 plan of reorganization for the company.

The company further said that it was in discussions with these
shareholders and, subject to the execution of confidentiality
agreements, will provide due diligence access to these
shareholders for the purposes of their proposal being further
refined and proposed definitive documentation being provided to
the Board for review and consideration.  The shareholders agreed
to complete their due diligence by July 20, 2007.

The company has already received the required number of votes
favoring its pre-packaged chapter 11 plan.

                  About Bally Total Fitness

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, the United Kingdom, 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.


BLOCKBUSTER INC: Reports 2.8% Revenue Decrease in 2nd Qtr. 2007
---------------------------------------------------------------
Blockbuster Inc. reported that its total revenue decreased 2.8%
to US$1.26 billion for the second quarter ended July 1, 2007,
from US$1.3 billion for the second quarter last year.

The company said due to a reduction in rental revenues from the
closure of stores, an unfavorable home video release schedule
and the sale of 217 GAMESTATION stores on May 2, 2007, caused
the decrease in total revenue.  These decreases were partially
offset by an increase in revenues from Blockbuster Inc.

"Our results this quarter clearly reflect continued investment
in our online subscriber growth. Although BLOCKBUSTER Total
Access allowed us to increase our subscriber base by 600,000 to
a total of 3.6 million subscribers, the costs associated with
the program affected our profitability," said Jim Keyes,
Blockbuster Chairman and CEO.  "While we remain committed to
capturing market share in the overall video rental market, we
are absolutely focused on striking an appropriate balance
between growth and enhanced profitability going forward."

The company said that for the second quarter of 2007, net loss
was US$35.3 million, compared with net income of US$68.4 million
for the second quarter of 2006.  The net loss for the second
quarter of 2007 included a US$77.7 million gain related to the
sale of 217 of the Company's UK-based GAMESTATION stores and net
income for the second quarter of 2006 was affected by the impact
of US$91.2 million in favorable tax audit settlements.

"To this end, the Company is undergoing a comprehensive review
of its business aimed at identifying and implementing
initiatives designed to revitalize the Company, enhance the
organizational structure and improve profitability" Mr. Keyes
said.  "Our goal is to transform Blockbuster into a company that
quickly responds to customers' changing needs for convenient
access to media entertainment.  We look forward to communicating
our strategic roadmap later in the year."

A full-text copy of Blockbuster's Second Quarter 2007 Earnings
is available for free at: http://ResearchArchives.com/t/s?21db

                     About Blockbuster Inc.

Headquartered in Dallas, Texas, Blockbuster Inc. (NYSE: BBI,
BBI.B) -- http://www.blockbuster.com/-- provides in-home movie   
and game entertainment, with more than 9,000 stores throughout
the Americas, Europe, Asia and Australia.  The company maintains
operations in Brazil, Mexico, Denmark, Italy, Taiwan, Australia,
among others.

                        *     *     *

Blockbuster Inc.'s 9% Senior Subordinated Notes due 2012 holds
Moody's Investors Service's Caa2 rating, Standard & Poor's
Ratings Services' CCC+ rating, and Fitch Ratings' CC rating.


CLEAR CHANNEL: Second Quarter Net Income Rises to US$236 Million
----------------------------------------------------------------
Clear Channel Communications Inc. reported revenues of US$1.8
billion in the second quarter ended June 30, 2007, an increase
of 5% from the US$1.7 billion reported for the second quarter of
2006.  Included in the company's revenue is a US$29.0 million
increase due to movements in foreign exchange; excluding the
effects of these movements in foreign exchange, revenue growth
would have been 4%.

Clear Channel's operating expenses increased 6% to US$1.1
billion during the second quarter of 2007 compared to 2006.  
Included in the company's 2007 expenses is a US$24.3 million
increase due to movements in foreign exchange; excluding the
effects of these movements in foreign exchange, growth in
expenses would have been 3%.

Clear Channel's income before discontinued operations increased
21% to US$208.7 million, as compared to US$172.6 million for the
same period in 2006.  The company's diluted earnings before
discontinued operations per share increased 24% to US$0.42,
compared to US$0.34 for the same period in 2006.  Clear
Channel's net income increased 19% to US$236.0 million in the
second quarter 2007 as compared to US$197.5 million in the
second quarter of 2006 and diluted earnings per share increased
23% to US$0.48, compared to US$0.39 for the same period in 2006.

The company's OIBDAN was US$636.8 million in the second quarter
of 2007, a 6% increase from 2006.  The company defines OIBDAN as
net income adjusted to exclude non-cash compensation expense and
the following line items presented in its Statement of
Operations:

   -- Discontinued operations, Minority interest, net of tax;
   -- Income tax benefit (expense);
   -- Other income (expense) - net;
   -- Equity in earnings of nonconsolidated affiliates;
   -- Interest expense;
   -- Gain on disposition of assets - net; and,
   -- D&A.

Mark P. Mays, Chief Executive Officer of Clear Channel
Communications, commented, "Our second quarter radio revenues
were ahead of the industry, while our outdoor unit continued to
post solid growth.  We continue to make progress in
strengthening our diverse portfolio of out-of-home media
properties.  Our focus remains on transitioning our assets to
meet the shifting demands of our audiences, as well as our
advertisers by offering compelling content, expanding our
distribution capabilities and investing in our brands."

                  Proposed Merger Transaction

On May 17, 2007, the company amended its agreement to be
acquired by a group of private equity funds led by Bain Capital
Partners, LLC and Thomas H. Lee Partners, L.P. to provide for an
increase to US$39.20 per share in the price shareholders will
receive in cash for each share of common stock they hold.  As an
alternative to receiving the US$39.20 per share cash
consideration, the company's unaffiliated shareholders will be
offered the opportunity, on a purely voluntary basis, to
exchange some or all of their shares of common stock on a one-
for-one basis for shares of Class A common stock in the new
corporation formed by the private equity group to acquire the
company.  In addition, each shareholder will be entitled to
receive additional per share consideration (as described in the
merger agreement), if the merger closes after Jan. 1, 2008.  The
stock election is subject to both individual and aggregate caps.  
The maximum number of shares of Class A common stock of the new
corporation that may be issued in the merger is approximately
30.6 million.  If all these shares are issued, they will
represent approximately 30 percent of the outstanding voting
securities of the new corporation immediately following the
closing of the merger.

The merger is subject to shareholder approval, antitrust
clearances, FCC approval and other customary closing conditions.  
The company's shareholders of record as of 5:00 p.m. Eastern
Daylight Savings Time on July 27, 2007, will be entitled to vote
on the merger at a special meeting.  The date and time of the
special meeting has not yet been set.

                Cash Dividend on Common Stock

The company's Board of Directors declared a quarterly cash
dividend of US$0.1875 per share on its Common Stock.  The
dividend is payable on October 15, 2007 to shareholders of
record at the close of business on September 30, 2007.

                Third Quarter & 2007 Outlook

Due to the proposed merger transaction and the company not
hosting a teleconference to discuss financial and operating
results, the company is providing the following information
regarding its current information related to 2007 operating
results.

Pacing information presented below reflects revenues booked at a
specific date versus the comparable date in the prior period and
may or may not reflect the actual revenue growth at the end of
the period.  The company's revenue pacing information includes
an adjustment to prior periods to include all acquisitions and
exclude all divestitures in both periods presented for
comparative purposes.  All pacing metrics exclude the effects of
foreign exchange movements.  Except where expressly identified,
the company's operating expense forecasts are on a reportable
basis excluding non-cash compensation expense, i.e. there is not
an adjustment for acquisitions, divestitures or the effects of
foreign exchange movements.

As of July 26, 2007, revenues for the Radio division are pacing
down 1.5% for the third quarter of 2007 as compared to the third
quarter of 2006, and are pacing down 0.2% for the full year of
2007 as compared to the full year of 2006.  As of the last week
in July, the Radio division has historically experienced
revenues booked of approximately 80% of the actual revenues
recorded for the third quarter and approximately 80% of the
actual revenues recorded for the full year.  The company's Radio
division currently forecasts total operating expense growth to
be flat for the full year 2007 as compared to the full year
2006.

Also as of July 26, 2007, revenues in the Outdoor division are
pacing up 10.6% overall.  The Americas outdoor segment is below
and the International outdoor segment above the 10.6% pacing for
the third quarter 2007 as compared to the third quarter of 2006.  
For the full year 2007 versus the full year 2006, Outdoor
division revenues are pacing up 7.2% with both the Americas and
International pacing at approximately that level.  As of the
last week in July, the Outdoor division has historically
experienced revenues booked of approximately 80% of the actual
revenues recorded for the third quarter and approximately 80% of
the actual revenues recorded for the full year.

For the full year 2007 as compared to the full year 2006,
current company forecasts show low double-digit growth in total
operating expenses for the Outdoor division.  Excluding the
effects of movements in foreign exchange, which management
currently forecasts at an US$85 to US$90 million increase for
the full year 2007 and excluding Interspace's (acquired by the
company on July 1, 2006) operating expenses of US$20.2 million
for the first six months of 2007, operating expense growth is
currently forecasted to be in the mid single-digits for 2007 as
compared to 2006.

For the consolidated company, current management forecasts show
corporate expenses of US$180 million to US$190 million for the
full year 2007, excluding costs associated with the pending
merger transaction.  Non-cash compensation expense (i.e. FAS
No. 123R : share-based payments) are currently projected to be
in the range of US$40 million to US$45 million for the full year
of 2007, excluding any compensation expense associated with
future option or share grants that may or may not occur in 2007
and excluding any non-cash compensation expense directly
associated with the pending merger transaction.

The company currently forecasts overall capital expenditures for
2007 of US$325 million to US$350 million, excluding any capital
expenditures associated with new contract wins the Company may
have during 2007.

Income tax expense as a percent of "Income before income taxes,
minority interest and discontinued operations" is currently
projected to be approximately 41%.  Current income tax expense
as a percent of "Income before income taxes, minority interest
and discontinued operations" is currently expected to be 25% to
30%.  These percentages do not include any tax expense or
benefit related to the pending merger transaction, the announced
divestitures of the Company's television stations and certain of
its radio stations or other capital gain transactions, or the
effects of any resolution of governmental examinations.

                     About Clear Channel

Based in San Antonio, Texas, Clear Channel Communications Inc.
(NYSE:CCU) -- http://www.clearchannel.com/-- is a global media  
and entertainment company specializing in "gone from home"
entertainment and information services for local communities and
premiere opportunities for advertisers.  The company's
businesses include radio, television and outdoor displays.
Outside U.S., the company operates in 11 countries -- Norway,
Denmark, the United Kingdom, Singapore, China, the Czech
Republic, Switzerland, the Netherlands, Australia, Mexico and
New Zealand.

                        *     *     *

As reported in the Troubled Company Reporter on April 23, 2007,
Standard & Poor's Ratings Services lowered its corporate credit
and senior unsecured debt ratings on Clear Channel
Communications Inc. to 'B+' from 'BB+'.  The ratings remain on
CreditWatch with negative implications, where they were placed
on Oct. 26, 2006, following the company's announcement that it
was exploring strategic alternatives to enhance shareholder
value.


GRUPO FINANCIERO: Earns MXN3.29 Billion in First Six Months
-----------------------------------------------------------
Grupo Financiero Banorte said in its latest financial statements
that its profits increased 12% in the first half of 2007 to
MXN3.29 billion, from the same period in 2006.

Business News Americas relates that Grupo Financiero's return on
equity in the first half of 2007 declined 23.8% from 25.7% in
the first half of 2006.  Its return on assets dropped 2.7% in
the first six months of 2007, compared to 2.9% in the first six
months of 2006.

According to BNamericas, the banking business contributed to 84%
of Grupo Financiero's profits in the first half of 2007.  Grupo
Financiero's assets totaled MXN262 billion while its equity was
MXN30.8 billion in June 2007.

Grupo Financiero Banorte SA de CV is a holding company that
operates, through its subsidiaries, in the Mexican banking
industry.  The company's main activities include commercial,
personal and investment banking, securities trading, insurance,
pension funds, leasing and credit financing.  Its two main
subsidiaries are Banorte (96.11%) and Bancentro (99.99%), which
both offer personal and commercial banking services such as
credit and debit cards, insurance products, savings accounts and
mortgage financing.  As of Dec. 31, 2005, Grupo Financiero
Banorte run a total of 986 offices and over 2,800 automated
teller machines across Mexico.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Aug. 2, 2006, Fitch upgraded the individual and Issuer Default
Ratings of Mexico's Grupo Financiero Banorte and Banco Mercantil
del Norte as:

Grupo Financiero Banorte and Banco Mercantil del Norte:

   -- Foreign & local currency IDR to 'BBB' from 'BBB-';
   -- Short-term local currency to 'F2' from 'F3'; and
   -- Individual to 'C' from 'C/D'.

Fitch said ratings outlook was stable.


HOST HOTELS: Net Income Drops to US$149 Mil. in Second Qtr. 2007
----------------------------------------------------------------
Host Hotels & Resorts Inc. disclosed last week its results of
operations for the second quarter ended June 15, 2007.  Total
revenue increased US$210 million, or 17.8%, to US$1.39 billion  
for the second quarter and US$422 million, or 21.0%, to US$2.43
billion for year-to-date 2007.  Excluding the revenues for the
Starwood portfolio, which was purchased in April 2006, revenues
increased 8.4% and 7.9% for the second quarter and year-to-date
2007, respectively.

Net income decreased US$181 million to US$149 million for the
second quarter and US$166 million to US$336 million for year-to-
date 2007.

Net income in 2007 included a net loss of approximately
US$46 million for the second quarter, and a net gain of US$90
million for year-to-date 2007 associated with the refinancing of
debt and gains (losses) on hotel dispositions.

By comparison, net income in 2006 included a net gain of
approximately US$199 million, and US$345 million in the second
quarter and year-to-date 2006, respectively, associated with
similar transactions, as well as preferred stock redemptions and
non-recurring costs associated with the Starwood acquisition.

The company also announced the following second quarter results
for Host Hotels & Resorts L.P., through which it conducts all of
its operations and holds approximately 97% of the partnership
interests:

Net income decreased US$189 million to US$154 million for the
second quarter and US$176 million to US$348 million for year-to-
date 2007.

Adjusted EBITDA, which is Earnings before Interest Expense,
Income Taxes, Depreciation, Amortization and other items,
increased 19.3% to US$414 million for the second quarter and
21.1% to US$677 million for year-to-date 2007.

          Financing Activities and Balance Sheet

During the second quarter, the company continued to reduce
interest costs, as well as manage its capital structure to
provide financial flexibility.  On May 2, 2007, the company paid
approximately US$547 million in connection with the defeasance
of US$514 million of mortgage debt with a 7.61% interest rate,
primarily utilizing proceeds from its March issuance of
US$600 million of 25/8% Exchangeable Senior Debentures.  The
payment included approximately US$33 million in
prepayment/defeasance and other costs.  

On May 25, 2007, the company successfully amended its credit
facility to increase the size of the facility to US$600 million,
extend the maturity from 2008 to 2011 and modify the terms of
the facility, including lowering the rate of interest on
borrowings from a spread of 200 to 375 basis points over LIBOR
to 65 to 150 basis points over LIBOR, depending on the company's
leverage ratio.  The amended facility also has an accordion
feature that allows for total borrowing capacity of up to US$1
billion.  There are currently no amounts outstanding under the
facility.  Since Dec. 31, 2006, the company has decreased its
weighted average interest rate from 6.8% to 6.1% as a result of
its 2007 refinancings.

As of June 15, 2007, the company had approximately of cash and
cash equivalents.  Excluding amounts necessary for working
capital, the company intends to use its remaining available
funds to further invest in its portfolio, acquire new properties
or make further debt repayments.

At June 15, 2007, the company's consolidated balance sheet
showed US$11.81 billion in total assets, US$6.2 billion in total
liabilities, US$214 million of interest of minority partners of
Host Hotels & Resorts LP and other consolidated partnerships,
and US$5.3 billion in total stockholders' equity.

Full-text copies of the company's consolidated financial
statements for the quarter ended June 15, 2007, are available
for free at http://researcharchives.com/t/s?21d7

Host Hotels & Resorts, Inc. -- http://www.hosthotels.com/--  
(NYSE:HST) is a lodging real estate investment trust and owns
luxury and upper upscale hotels.  The company currently owns 121
properties with approximately 64,000 rooms, and also holds a
minority interest in a joint venture that owns seven hotels in
Europe with approximately 2,700 rooms.  Guided by a disciplined
approach to capital allocation and aggressive asset management,
the company partners with premium brands such as Marriott(R),
Ritz-Carlton(R), Westin(R), Sheraton(R), W(R), St. Regis(R),
The Luxury Collection(R), Hyatt(R), Fairmont(R), Four
Seasons(R), Hilton(R) and Swissotel(R) in the operation of
properties in over 50 major markets worldwide, including Mexico
and Italy.

                        *     *     *

As reported in the Troubled Company Reporter on May 7, 2007,
Standard & Poor's Ratings Services revised its rating outlook on
Host Hotels to positive from stable.  All ratings on the
company, including the 'BB' corporate credit rating, were
affirmed.


MCDERMOTT INT'L: Closes Revisions to US$900MM Credit Facilities
---------------------------------------------------------------
McDermott International Inc. has recently completed amendments
to two of its subsidiaries' outstanding credit facilities, which
have a combined borrowing and performance-related letter of
credit capacity of US$900 million.  Currently, there are no
borrowings under either facility, although approximately US$510
million of combined performance-related letters of credit are
currently outstanding.

Following the previously announced upgrades from the major
credit ratings agencies, McDermott requested from its lenders a
number of modifications to these existing credit facilities.  
Among the significant new financial terms, the amended
facilities have lower applicable margins for borrowings and
letters of credit, which will save between 50-150 basis points
annually compared to the previous cost.  McDermott estimates
that it will realize approximately US$5 million per year of
pretax savings, excluding initial arrangement fees, as a result
of the amended financial terms, subject to the revised ratings-
based pricing grid.

"McDermott appreciates the strong support of the many financial
institutions participating in our amended credit facilities,"
said Michael S. Taff, Senior Vice-President and Chief Financial
Officer.  "Both of these facilities are now completely supported
by commercial banks, which demonstrates our improved credit
profile, strong financial relationships and the lenders'
confidence in our respective subsidiaries."

McDermott International, Inc. (NYSE:MDR)
-- http://www.mcdermott.com/--is a leading worldwide energy   
services company.  McDermott's subsidiaries provide engineering,
construction, installation, procurement, research,
manufacturing, environmental systems, project management and
facility management services to a variety of customers in the
energy and power industries, including the U.S. Department of
Energy.  The company operates in most major offshore producing
regions throughout the world, including the U.S. Gulf of Mexico,
Mexico, the Middle East, India, the Caspian Sea and Asia
Pacific.  Operations in this segment are primarily conducted
through its subsidiary, J. Ray McDermott, S.A.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
July 5, 2007, Moody's raised MII's Corporate Family Rating to
Ba3 from B1.  

Moody's upgraded J. Ray McDermott, S.A.'s CFR to Ba3 from B1,
its Probability of Default Rating to B1 from B2 and its senior
secured bank facility to Ba2 (LGD-2, 22%) from Ba3 (LGD-2, 24%)
and The Babcock & Wilcox Company's senior secured bank facility
rating to Baa3 (LGD-1, 6%) from Ba2 (LGD-2, 19%).  The rating
outlook for J. Ray is positive, while the rating outlooks for
MII and B&W are both stable, according to Moody's.


SENSATA TECH: Completes Airpax Acquisition for US$276 Million
-------------------------------------------------------------
Sensata Technologies, Inc., has closed the previously announced
acquisition of Airpax Holdings, Inc., a manufacturer of
components and systems for power protection, sensing and control
applications.

The purchase price was US$276 million, plus fees and expenses.
Sensata closed the acquisition with a combination of cash and
new borrowings.  Sensata issued a new senior subordinated term
loan for EUR141 million (US$195 million) arranged by Morgan
Stanley, Bank of America, and Goldman Sachs, with a maturity
date of Oct. 27, 2013.  The new term loan contains customary
covenants and representations and warranties.  The loan bears
interest at a variable rate based on EURIBOR plus the applicable
margin.  The applicable margin is currently 4.50%, and will
increase by 0.50% commencing on the date that is six months
following the Effective Date and on each three-month anniversary
of such date thereafter; provided, that the interest rate on the
loan will not exceed 10.50% per annum.  The balance of the
acquisition was funded with cash on hand.

                    About Airpax Holdings

Headquartered in Cambridge, Maryland, with facilities around the
world and 2,800 employees, Airpax Holdings Inc. is the market
leader in its suite of products, which are complimentary to
Sensata's business.  Airpax serves original equipment
manufacturers in the telecommunications, industrial,
recreational vehicle, heating, ventilation and air-conditioning,
refrigeration, marine, military, medical, power supply and
generation, construction and agricultural end markets.

For the year ended Dec. 31, 2006, Airpax reported net revenues
of approximately US$123 million.

                  About Sensata Technologies

Headquartered in Attleboro, Massachusetts, Sensata Technologies
-- http://www.sensata.com/-- is a supplier of sensors and   
controls across a range of markets and applications.  The
company has manufacturing locations in Brazil, Mexico, China,
Japan and the Netherlands.  Sensata Technologies employs
approximately 5,400 people worldwide.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 22, 2007, Standard & Poor's Ratings Services revised its
outlook on Sensata Technologies B.V. to negative from stable.  
The outlook revision follows the company's announcement that it
will acquire Airpax Holdings Inc. for US$276 million plus fees
and expenses using a combination of cash and debt.  All of its
ratings on Sensata, including S&P's 'B+' corporate credit
rating, have been affirmed.




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


* PARAGUAY: Ernest Bergen Resigns as Finance Minister
-----------------------------------------------------
The Associated Press reports that Ernest Bergen has left his
post as Paraguay's finance minister.

Mr. Bergen told the AP that he was resigning for unspecified
"family reasons" and not due to differences with Paraguay's
President Nicanor Duarte.  He said that President Duarte told
him to maintain the government's current tax policies, and to
seek "prudence in public spending and achieve important economic
growth."

Mr. Bergen became the country's finance minister in May 2005,
the AP says.

According to the report, economist Cesar Barreto replaced Mr.
Bergen as finance minister.

Meanwhile, Mr. Barreto "had been director of the Financial
Development Agency, which channels soft loans to producers
through banks and other financial institutions," the AP states.

                        *     *     *

Moody's assigned these ratings on Paraguay:

     -- CC LT Foreign Bank Deposit, Caa2
     -- CC LT Foreign Currency Debt, Caa1
     -- CC ST Foreign Bank Deposit, NP
     -- CC ST Foreign Currency Debt, NP
     -- LC Currency Issue




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


FREEPORT-MCMORAN: 2007 2nd Quarter Profit Triples to US$1.1 Bil.
----------------------------------------------------------------
Freeport-McMoRan Copper & Gold Inc.'s 2007 second-quarter profit
tripled due to the increase in metal prices and the acquisition
of Phelps Dodge, Reuters reports.

According to Reuters, the company's net earnings rose to
US$1.1 billion from the US$367 million net earnings recorded in
the corresponding quarter in 2006.

Freeport's revenue quadrupled to US$5.81 billion from US$1.42
billion, which figure includes earnings and production from
Phelps Dodge.  Phelps Dodge was acquired by Freeport in March,
the report recounts.

Reuters relates that the company earned US$2.70 per share,
excluding the charges to extinguish debt, and the 5 cents per
share gains from sale of marketable equity securities.

The second-quarter results also included charges of 18 cents per
share for noncash mark-to-market accounting adjustments on
Phelps Dodge's copper price protection programs, the report
says.

Steve James of Reuters relates that the company, which has a
vast gold mine in Indonesia, disclosed a consolidated sale from
its mine totaling to one billion pounds of copper, 913,000
ounces of gold and 15 million pounds of molybdenum in the second
quarter.

Freeport expects third-quarter sales of 900 million pounds of
copper, 125,000 ounces of gold and 16 million pounds of
molybdenum.  Full-year 2007 consolidated sales are estimated at
about 3.9 billion pounds of copper, 2.1 million ounces of gold
and 68 million pounds of molybdenum, the report adds.

                     About Freeport-McMoRan

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.

                        *     *     *

As reported in the Troubled Company Reporter- Asia Pacific
reported on Jul 16, 2007, that Fitch Ratings upgrades these
ratings of Freeport-McMoRan Copper & Gold Inc.

FCX

    -- US$1 billion Secured Bank Revolver to 'BB+' from 'BB';
    -- 6.875% secured notes due 2014 to 'BB+' from 'BB';
    -- Unsecured notes due 2015 and 2017 to 'BB' from 'BB-';
    -- 7% convertible notes due 2011 to 'BB' from 'BB-'.

In addition, Fitch affirms these ratings on FCX:

    -- Issuer Default Rating at 'BB';

    -- US$500 million PT Freeport Indonesia/FCX Secured Bank
       Revolver at 'BBB-';

    -- Convertible Preferred Stock at 'B+'.

Fitch also assigns a rating of 'BB+' to FCX's new US$2.45
billion five-year term loan A.  Proceeds of the loan were used
to repay the US$2.45 billion remaining under the term loan due
March 2014.  The term loan amortizes at 10% per annum with the
remainder due at maturity.

Fitch said the rating outlook remains positive.

On March 29, 2007, Moody's Investors Service upgraded Freeport-
McMoRan Copper & Gold Inc.'s or Freeport's corporate family  
rating to Ba2 from Ba3.

As reported in the Troubled Company Reporter on March 27, 2007,
Standard & Poor's Ratings Services assigned its 'B' preferred
stock rating to the proposed US$2.5 billion US6.75% mandatory
convertible preferred stock offering of Freeport-McMoRan
Copper & Gold Inc.




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


CELESTICA INC: 2nd Qtr. 2007 Revenue Decreases to US$1.9 Billion
----------------------------------------------------------------
Celestica Inc. reported revenue of US$1.9 billion, down 13% from
US$2.2 billion in the second quarter of 2006.  Net earnings for
the second quarter were US$24.9 million, compared to net loss of
US$30.3 million for the same period last year.  Included in net
earnings for the quarter are the impacts of a US$32 million net
deferred tax recovery related primarily to the tax benefit of
previous years' write-down of restructured Canadian operations
and restructuring charges of US$2.5 million.  For the same
period in 2006, restructuring charges were US$20 million.

Adjusted net earnings for the quarter were US$4.9 million,
compared to adjusted net earnings of US$29.1 million for the
same period last year.  These results compare with the company's
guidance for the second quarter, announced on April 25, 2007, of
revenue in the range of US$1.85 billion to US$2.05 billion.

For the six months ended June 30, 2007, revenue was US$3.8
billion, compared to US$4.2 billion for the same period in 2006.  
Net loss was US$9.4 million, compared to net loss of US$47.7
million last year. Adjusted net loss for the first half of 2007
were US$4.2 million, compared to adjusted net earnings of
US$46.5 million for the same period in 2006.

As of June 30, 2007, the company's balance sheet showed
US$4.7 billion in total assets, US$2.6 billion in total
liabilities, and US$2.6 billion in total stockholders' equity.

"Our second quarter results demonstrate the steady progress we
are making as a result of the turnaround plans implemented
earlier this year," said Craig Muhlhauser, president and chief
executive officer, Celestica.  "Revenue is trending upwards,
working capital performance is improving and we continue to make
operational improvements in North America and Europe.  Our
operating profit is still at the early stages of recovery and we
expect to continue to build on the improvements made to date."

                           Outlook

For the third quarter ending Sept. 30, 2007, the company expects
revenue will be in the range of US$2 billion to US$2.2 billion.

                       About Celestica

Celestica Inc. (NYSE:CLS) -- http://www.celestica.com/--  
provides innovative electronics manufacturing services.  Through
its global manufacturing and supply chain network, the company
delivers competitive advantage to companies in the computing,
communications, consumer, industrial, and aerospace and defense
end markets.  Celestica operates a highly sophisticated global
manufacturing network with operations in Brazil, China, Ireland,
Italy, Japan, Malaysia, Philippines, Puerto Rico, and the United
Kingdom, among others.

                        *     *     *

As reported in the Troubled Company Reporter on May 4, 2007,
Moody's Investors Service downgraded Celestica Inc.'s corporate
family rating to B1 from Ba3 and the senior subordinated note
ratings to B3 from B2.  Simultaneously, Moody's lowered the
company's speculative grade liquidity rating to SGL-2 from
SGL-1.


HORIZON LINES: S&P Assigns B Rating on US$300 Mil. Senior Notes
---------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' rating to
Horizon Lines Inc.'s (BB-/Stable--) proposed US$300 million
senior convertible notes offering due 2012.  Proceeds from the
notes offering, combined with proceeds from a planned new credit
facility, will be used primarily to repay its outstanding 9%
senior notes due 2012 and its 11% senior discount notes due
2013.  The company launched a tender offer for these notes on
July 17, 2007.  The tender offer expires on July 30, 2007.  The
Charlotte, North Carolina-based shipping company currently has
about US$800 million of lease-adjusted debt.
      
"Ratings on Horizon Lines reflect the company's highly leveraged
[albeit improving] financial profile and participation in the
capital-intensive and competitive shipping industry," said
Standard & Poor's credit analyst Lisa Jenkins.
     
Horizon Lines primarily transports goods between the continental
U.S. and Alaska, Puerto Rico, Hawaii, and Guam.  The company's
financial performance has improved over the past year, primarily
due to higher freight rates, a better cargo mix, and improved
operating efficiencies, which have more than offset the impact
of weaker conditions in the Puerto Rican market over the past
year.  The company has various initiatives in place to bolster
operating efficiencies, including adding newer ships to the
fleet. We expect this to result in improved credit metrics over
the intermediate term and have factored that into our ratings.
Total debt to EBITDA (adjusted for operating leases) is
estimated to be close to 5x (factoring in the new ship
deliveries) and should stay at or below this level.  While
earnings are expected to show modest improvement over the near
to intermediate term, adjusted debt levels will fluctuate over
time, depending upon the timing of investments in the fleet. As
a result, there is likely to be some variability in the
financial profile over time.

Rating List

Horizon Lines Inc.
Corporate Credit Rating                 BB-/Stable/--

New Rating Assigned
Horizon Lines Inc.
US$300 Mil. Convertible Notes Due 2012    B

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.


MENNONITE HOSPITAL: Fitch Ups Rating on US$43.2MM Bonds to BB-
--------------------------------------------------------------
Fitch upgrades to 'BB-' from 'B+' the rating on approximately
US$43.2 million Puerto Rico Industrial, Tourist, Educational,
Medical, and Environmental Control Facilities Financing
Authority hospital revenue bonds (Mennonite General Hospital
Project), series 1996A and series 1997.  The Rating Outlook is
Stable.

The upgrade to 'BB-' from 'B+' is primarily due to Mennonite's
stabilization of operating performance and completion of a major
facility upgrade, which has led to increased utilization.
Mennonite ended fiscal year 2007 with positive income from
operations of US$4.9 million (4.2% operating margin), the third
consecutive year of positive operating earnings after 5 years of
operating losses.  These trends are driven by increasing patient
volume and management initiatives, such as reductions in length
of stay for Medicare patients, developed with the assistance of
a consultant team.  Through the first three months of fiscal
2008 ended May 31, 2007, Mennonite's operating margin was a
robust 10.7%. Coverage of maximum annual debt service (MADS) by
earnings before interest, tax, depreciation and amortization
(EBITDA) was 3.3 times at fiscal 2007. Ongoing credit strength
is Mennonite's dominant market share.

Credit concerns include extremely low liquidity levels, a high
debt burden and reliance on top admitting physicians.
Unrestricted cash and investments grew to US$5 million at the
five months ended May 31, 2007, equating to weak 18.2 days cash
on hand and 9.8% cash to debt.  This is still well below Fitch's
below investment grade medians of 54.1 and 38.0% respectively.
Despite an expectation of continued solid cash flow, further
liquidity improvements are unlikely given Mennonite's stated
commitment to expansion and upgrades going forward.  Mennonite's
debt to capitalization ratio was a high 61.9% at the five months
ended May 31, 2007.  The top 10 admitting physicians continue to
account for a very high percentage of total admissions at
Mennonite's two hospitals, New Cayey and Aibonito at 54% and
65.6% respectively, exposing Mennonite to reductions in volumes
due to physician departures.

The Stable Rating Outlook reflects the expectation that
utilization growth and positive operating performance should
continue over the short term. Further, leverage indicators are
expected to improve as management has no plans to use
significant debt to fund capital expenditures in foreseeable
future.

Mennonite General Hospital is a two hospital system with a
combined 266 licensed beds (266 operated), located in Cayey and
Aibonito Puerto Rico.  Mennonite had total operating revenues of
US$115.3 million in fiscal 2007.  Mennonite's disclosure to both
Fitch and bondholders has been excellent in terms of timeliness
and accuracy and consists of balance sheet, income statement,
management discussion and analysis, and various operating
statistics but not the statement of cash flows.




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


* URUGUAY: Lower Financing Needs Prompt Fitch to Lift Ratings
-------------------------------------------------------------
Fitch Ratings has upgraded Uruguay's foreign currency sovereign
Issuer Default Rating to 'BB-' from 'B+', the local currency IDR
to 'BB' from 'BB-', and its country ceiling to 'BB+' from 'BB'.  
The Rating Outlook is Stable.  The short-term IDR was affirmed
at 'B'.

The rating upgrade reflects Uruguay's lower financing needs and
its improving public debt dynamics as a result of higher
economic growth, conservative fiscal policies, and deft
liability management.  'The reduced financing needs of the
Uruguayan government due to the full repayment of its IMF
obligations and stretching of external bond maturities through
liability management transactions make the country more
resilient to external shocks,' said Shelly Shetty, Senior
Director in Fitch's Sovereign Group.  Fitch estimates that the
general government's financing needs for 2007 have declined to
5.4% of GDP, compared to last year's estimate of 10.6%. The
improved maturity profile as well as Uruguay's comparatively
stronger institutions and continued political stability somewhat
mitigate concerns posed by Uruguay's heavy public debt burden.

'Fiscal policy has remained consistent with generating primary
surpluses large enough to place public debt on a declining
trend,' said Shetty.  Fitch's public debt dynamics reveal that
if Uruguay is able to sustain the general government primary
surplus above 2.6% of GDP, and in the absence of external
shocks, public debt could reach below 60% of GDP by 2010. In
addition, Uruguay consistently met the macroeconomic and fiscal
benchmarks under its IMF program, and, in spite of its
'graduation' due to its full debt repayment to the fund in 2006,
Fitch expects the government to keep in place the program's main
tenets related to fiscal sustainability.

Uruguay's GDP growth remains strong, and rising investment
directed towards productive projects bodes well for economic
growth to remain above the country's historic trend.  The
increasing diversification of the country's exports in terms of
product lines and markets also supports Fitch's positive
assessment of growth prospects.  Furthermore, robust FDI flows,
which are expected to reach 5.1% of GDP in 2007, continue to
provide healthy financing for the country's current account
deficit.

Although there has been a marked improvement, Fitch notes that
creditworthiness remains constrained by weaknesses in external
solvency and liquidity indicators, as well as by the level and
composition of public debt.  In 2006, public sector debt equaled
72% of GDP and net external debt reached 112% of broad external
receipts, both of which are above the 'BB' median.  Moreover,
public debt dynamics are highly exposed to fluctuations in the
exchange rate, as over 80% of public debt is denominated in
foreign currencies.  Despite the accumulation of international
reserves in recent years, Uruguay's external liquidity remains
weaker than rating peers, especially in the context of
widespread dollarization of the financial system.  Finally,
while the authorities have taken steps to improve the strength
of the financial system through implementation of stricter
prudential regulations and restructuring of some of the state
banks, the financial system continues to represent an important
risk to the sovereign due to the dominance of state banks and a
high degree of financial dollarization.

Improvements in currency composition of public debt as well as
faster reduction in public and external indebtedness would be
positive for Uruguay's credit profile.  On the other hand,
creditworthiness would be hurt if there are signs of weakening
policy framework, especially if the authorities are unable to
adjust their fiscal and monetary policies appropriately to an
external shock.




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


DAIMLERCHRYSLER: Banks to Pool Money to Raise Buyout Financing
--------------------------------------------------------------
Bankers for DaimlerChrysler AG's Chrysler Group deferred a
US$12 billion sale of debt to investors as part of a buyout
severing Chrysler from its German parent, The Wall Street
Journal reports.

According to WSJ, rather than fund the operations of the
newly independent auto maker with money raised from loans,
as planned, the underwriters of the deal -- five banks led
by J.P. Morgan Chase & Co. -- will have to provide much of
the money themselves, at least until the market settles
down.

The New York Times relates that executives at the automaker's
parent company said the financing problem will not affect
the purchase of the Chrysler Group by the private equity firm
Cerberus Capital Management, which signed to buy an 80% stake in
the U.S. Arm.

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

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

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

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

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


DAIMLERCHRYSLER: Seeks to Trim Down Dealer Ranks to Stem Losses
---------------------------------------------------------------
Chrysler Group has warned some of its weakest dealers that it
may try to shut them down if they can't generate more sales in
the next six months, a sign that the auto maker is stepping up
efforts to cull its network of retail outlets, Neal E. Boudette
writes for The Wall Street Journal.

Cerberus Capital Management LP, which is completing its deal to
buy a controlling stake in Chrysler from DaimlerChrysler AG, had
previously held talks with Chrysler executives and some of
Chrysler's top dealers to discuss the need to slash dealer ranks
in order to stem the unit's losses in North America, WSJ states.

Auto makers seldom get their way when trying to terminate
dealers' franchise agreements for poor sales performance as they
often wind up in court, where state laws guarantee franchisees
many protections against manufacturers, Mr. Boudette observes.

Chrysler, General Motors Corp. and Ford Motor Co. has been
slowly reducing the number of stores in its sales network in a
bid to be more competitive.  GM has about 6,900 dealers, Ford
has 4,200 and Chrysler 3,700.  Holding U.S. market shares of
about 23%, 16% and 14%, respectively, that amounts to about 300
dealers per one point of U.S. market share held by GM, about 280
a point for Ford and 270 for Chrysler, WSJ relates.

By comparison, Toyota Motor Corp. has about 1,400 dealers, and
its 16% market share gives it about 90 for each market-share
point, the report says.

                    About DaimlerChrysler

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

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

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

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

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


* VENEZUELA: Proposed Gas Pipeline on Hold, Hugo Chavez Says
------------------------------------------------------------
A proposed US$20-billion gas pipeline that would link Venezuela
with Brazil, Argentina and possibly Uruguay is on hold,
reporters in Venezuela say, citing the country's President Hugo
Chavez.

Business News Americas relates that the Gran Gasoducto del Sur
pipeline would have stretched over 8,000 kilometers.  It would
have brought "much-needed natural gas to the energy-strapped
Southern Cone."

President Chavez told BNamericas that an "attack" from inside
South America had disrupted the project.  

The project wouldn't have been profitable for Venezuela,
BNamericas says, citing President Chavez.  He said he would
never have proposed the project if he "had been thinking about
money."

The proposed pipeline is among one of President Chavez's way of
weaning the region from US influence.  Through the pipeline,
Venezuela would supply its neighbors with natural gas, taking
that role away from multinational companies.  But the project
would cut through the Amazon forest, inciting protests from
various environmental groups.  

                        *     *     *

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


                       ***********


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

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

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

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


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