TCRLA_Public/070807.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Tuesday, August 7, 2007, Vol. 8, Issue 155

                          Headlines

A R G E N T I N A

AGROSERVICIOS LOS CERRILLOS: Claims Verification Ends Sept. 14
AUTOPLAN SA: Trustee Filing Individual Reports in Court Today
BANCO DE GALICIA: Eyes 93.7-Million Demand for Share Issue
CASTIMAR SACF: Trustee Filing General Report in Court Today
CLINICA Y MATERNIDAD: Trustee Filing Individual Reports Today

COMPANIA ALIMENTICIA: Trustee Filing Individual Reports Today
DANIEL BRUSCA: Trustee Filing General Report in Court Today
DANY PLAST: Proofs of Claim Verification Deadline Is Sept. 10
DELTA AIR: Commences Distribution of 21 Million Common Shares
DELTA AIR: Earns US$1.8 Billion in Second Quarter 2007

DISTRIBUIDORA REGIONAL: Claims Verification Ends Tomorrow
HUNTSMAN CORP: Holders Connected w/ MatlinPatterson Sell Shares
JORGE SEQUENZA: Proofs of Claim Verification Is Until Sept. 13
LUKE MUNRO: Proofs of Claim Verification Deadline Is Oct. 3
PETROLGE SA: Trustee Filing Individual Reports in Court Today

SHINC SA: Proofs of Claim Verification Deadline Is Today
TELEFONICA DE ARGENTINA: Workers Occupy Aerolineas' Call Center
VALEANT PHARMACEUTICALS: Earns US$16.8 Mil. in Second Qtr. 2007
VIDRIERIA EL ANGEL: Trustee Filing General Report in Court Today

* ARGENTINA: Launching Plant Engineering Tender with Bolivia


B A H A M A S

ISLE OF CAPRI: Posts US$14.6M of Net Loss in Qtr. Ended April 29


B O L I V I A

* BOLIVIA: Launching Plant Engineering Tender with Argentina


B R A Z I L

ADVANCED MICRO: Moody's Lowers US$390-Million Notes Rating to B2
BANCO DAYCOVAL: Hires UBS Pactual as Market Marker
BANCO NACIONAL: Okays BRL1.5-Mil. Loan Restoring Church Project
BANCO SUMITOMO: Moody's Withdraws All Ratings
DRESSER-RAND: Unable to Agree on Labor Contract with IUE-CWA

EMI GROUP: Moody's Lowers Corp. Family & Sr. Debt Ratings to B1
MILACRON INC: Incurs US$100,000 Net Loss in Qtr. Ended June 30
PETROLEOS DE VENEZUELA: Abreu Project Gets Preliminary License
TAM SA: Will Pay Families of All Crash Victims

TECUMSEH PRODUCTS: Names Edwin Buker as Chief Executive Officer
TIMKEN CO: Board Declares US$0.17 Per Share Quarterly Dividend
TOWER AUTOMOTIVE: Appoints Mark Malcolm as CEO & President

* BRAZIL: Gov't Grants Preliminary License for Abreu Project
* BRAZIL: Mulls Sale of 30-Year Bonds
* BRAZIL: State Firm Acquires Suzano Shares for BRL2.7 Billion


C A Y M A N   I S L A N D S

ABACUS FUND: Will Hold Final Shareholders Meeting on Aug. 10
ACORN ALTERNATIVE: Proofs of Claim Filing Is Until Aug. 10
ANTHRACITE BALANCED: Proofs of Claim Filing Deadline Is Aug. 9
ANTHRACITE BALANCED: Sets Final Shareholders Meeting for Aug. 9
ASAP CURRENCY: Proofs of Claim Filing Is Until Aug. 9

ASAP FUNDING LTD: Proofs of Claim Filing Is Until Aug. 9
ASIAN FUNDING: Proofs of Claim Filing Deadline Is Aug. 9
CHESHIRE FINANCE: Proofs of Claim Filing Deadline Is Aug. 9
CORSAIR II: Proofs of Claim Filing Deadline Is Aug. 13
DRAGON MBS: Proofs of Claim Must be Filed by Aug. 9

GREENSTREAM MF: Creditors Must File Proofs of Claim by Aug. 9
GULF INSURANCE: Proofs of Claim Filing Is Until Aug. 13
OAM FINANCE: Proofs of Claim Must be Filed by Aug. 9
OASIS OFFSHORE: Sets Final Shareholders Meeting for Aug. 13
OFFSHORE CRUDE: Proofs of Claim Must be Filed by Aug. 9

OWWS LTD: Proofs of Claim Filing Deadline Is Aug. 9
VEGA LTD: Will Hold Final Shareholders Meeting on Aug. 10
WORLD SAILING: Holding Final Shareholders Meeting Today
ZAIS STRUCTURED: Final Shareholders Meeting Is on Aug. 10
ZAIS STRUCTURED: Proofs of Claim Filing Is Until Aug. 10


C H I L E

EASTMAN KODAK: Earns US$592 Million in Quarter Ended June 30
GERDAU: Chilean Unit Working on Boosting Capacity


C O S T A   R I C A

ALCATEL-LUCENT: To Upgrade nTelos' Wireless Network


E C U A D O R

PETROECUADOR: Grants Gas Supply Contract To Trafigura Beheer


M E X I C O

BALLY TOTAL: Moody's Removes All Ratings After Bankruptcy Filing
BALLY TOTAL: Wins Favorable Ruling in Mass. Consumer Lawsuit
DURA AUTOMOTIVE: Files Backstop Rights Purchase Agreement
DURA AUTOMOTIVE: Unit Inks Joint Venture Deal with MINTH Group
GRUPO MEXICO: Talks with Union Fail

JABIL CIRCUIT: Paying US$0.07 Per Share Dividend on Sept. 4
NORTEL NETWORKS: Posts US$37 Mil. Net Loss in Qtr. Ended June 30
QUAKER FABRIC: Inks Pact w/ GB Merchant for US$2MM Overadvance
SONIC CORP: Board Okays Additional US$75 Mil. Stock Repurchase
WERNER LADDER: Court Extends Removal Period to November 5

WERNER LADDER: Levine Leichtman Wants to Prosecute Claims


P U E R T O   R I C O

ADVANCED MEDICAL: Posts US$166 Mil. Net Loss in Second Qtr. 2007
NBTY INC: Earns US$51 Million in Third Quarter Ended June 30
PILGRIM'S PRIDE: Board Elects Lonnie Ken Pilgrim as Chairman
QUANTUM CORP: Posts US$22.6 Mil. Net Loss in Qtr. Ended June 30


V E N E Z U E L A

NORTHWEST AIRLINES: Inks Pact with ALPA on Contract Improvements

* Large Companies with Insolvent Balance Sheets


                          - - - - -

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


AGROSERVICIOS LOS CERRILLOS: Claims Verification Ends Sept. 14
--------------------------------------------------------------
Juan Carlos Bonfigli, the court-appointed trustee for
Agroservicios Los Cerrillos S.A.'s reorganization proceeding,
verifies creditors' proofs of claim on Sept. 14, 2007.

Mr. Bonfigli will present the validated claims in court as
individual reports on Oct. 30, 2007.  The National Commercial
Court of First Instance in Casilda, 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 Agroservicios Los Cerrillos 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 Agroservicios Los
Cerrillos' accounting and banking records will be submitted in
court on Dec. 14, 2007.

The informative assembly will be held on June 27, 2008.
Creditors will vote to ratify the completed settlement plan
during the assembly.

The debtor can be reached at:

         Agroservicios Los Cerrillos S.A.
         1 de Mayo 1299, Arequito
         Santa Fe, Argentina

The trustee can be reached at:

         Juan Carlos Bonfigli
         Buenos Aires 2048, Casilda
         Santa Fe, Argentina


AUTOPLAN SA: Trustee Filing Individual Reports in Court Today
-------------------------------------------------------------
Elisa Esther Tomattis, the court-appointed trustee for Autoplan
S.A. de Ahorro Para Fines Determinados' bankruptcy proceeding,
will present the validated claims in the National Commercial
Court of First Instance in Buenos Aires as individual reports on
Aug. 7, 2007.

Ms. Tomattis verified creditors' proofs of claim until
June 9, 2007.

A general report that contains an audit of Autoplan's accounting
and banking records will be submitted in court on
Sept. 19, 2007.

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

The debtor can be reached at:

          Autoplan S.A. de Ahorro Para Fines Determinados
          Suipacha 658
          Buenos Aires, Argentina

The trustee can be reached at:

          Elisa Esther Tomattis
          Avenida Callao 215
          Buenos Aires, Argentina


BANCO DE GALICIA: Eyes 93.7-Million Demand for Share Issue
----------------------------------------------------------
Banco de Galicia said in a filing with the Argentine stock
exchange that it saw demand for 93.7 million of its planned
100 million share issue.

Banco de Galicia priced its capital raise at ARS4.991 a share,
raising ARS468 million from the issue.  The preferential
subscription period ended on Aug. 1, 2007, Business News
Americas relates.

                   About Banco de Galicia

Headquartered in Buenos Aires, Argentina, Banco de Galicia y
Buenos Aires SA -- http://www.e-galicia.com/-- is an
Argentinean private bank that is engaged in commercial banking,
providing general banking services to large corporations, small
and medium-sized companies, agricultural and cattle farms and
individuals.  The company controls an extensive and diverse
network of subsidiaries, which include Banco Galicia Uruguay SA,
Galicia Capital Markets SA, Galicia Factoring y Leasing SA, Agro
Galicia SA, Galicia Administradora de Fondos SA, Galicia Valores
SA, Galicia Warrants SA, Net Investments SA, Sudamericana
Holding SA and Tarjetas Regionales SA.  Through its subsidiaries
the company offers accounting, investment and insurance
services, loans, checks and debit and credit cards.  It also
finances the development of real estate, acts as a fiduciary and
leases properties to interested parties.  It operates over 400
branches across the country and provides e-banking services to
customers via its Internet site.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 23, 2007, Banco de Galicia y Buenos Aires' Obligaciones
Negociables issued on Nov. 6, 2001, for the original amount of
US$12 million was rated D by the Argentine arm of Standard &
Poor's International Ratings.


CASTIMAR SACF: Trustee Filing General Report in Court Today
-----------------------------------------------------------
Ruben Hugo Faure, the court-appointed trustee for Castimar
S.A.C.F. y S.'s reorganization proceeding, will present before
the National Commercial Court of First Instance No. 9 in Buenos
Aires a general report containing an audit of the firm's
accounting and banking records will be submitted in court on
Aug. 7, 2007.

Mr. Faure verified creditors' proofs of claim until
April 20, 2007.  He presented the validated claims in court as
individual reports on June 5, 2007.

The informative assembly will be held on Feb. 4, 2008.
Creditors will vote to ratify the completed settlement plan
during the assembly.

The debtor can be reached at:

          Castimar SACF y S
          Lavalleja 815
          Buenos Aires, Argentina

The trustee can be reached at:

          Ruben Hugo Faure
          Avenida Corrientes 1312
          Buenos Aires, Argentina


CLINICA Y MATERNIDAD: Trustee Filing Individual Reports Today
-------------------------------------------------------------
Maria Luisa Ledesma, the court-appointed trustee for Clinica y
Maternidad Privada Pueyrredon S.A.'s bankruptcy proceeding, will
present the validated claims as individual reports in the
National Commercial Court of First Instance in La Plata, Buenos
Aires, on Aug. 7, 2007.

Ms. Ledesma verified creditors' proofs of claim until
June 25, 2007.

A general report that contains an audit of Clinica y
Maternidad's accounting and banking records will be submitted in
court on Sept. 19, 2007.

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

The debtor can be reached at:

          Clinica y Maternidad Privada Pueyrredon S.A.
          Pueyrredon 929, Berazategui
          Buenos Aires, Argentina

The trustee can be reached at:

          Maria Luisa Ledesma
          Calle 11 Numero 716, La Plata
          Buenos Aires, Argentina


COMPANIA ALIMENTICIA: Trustee Filing Individual Reports Today
-------------------------------------------------------------
Jose Maria Larrary, the court-appointed trustee for Compania
Alimenticia Velez Sarfield S.R.L.'s bankruptcy proceeding, will
present the validated claims in the National Commercial Court of
First Instance in Buenos Aires as individual reports on
Aug. 7, 2007.

Mr. Larrary verified creditors' proofs of claim until
June 8, 2007.

A general report that contains an audit of Compania
Alimenticia's accounting and banking records will be submitted
in court on Sept. 19, 2007.

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

The trustee can be reached at:

          Jose Maria Larrary
          Rodriguez Pena 231
          Buenos Aires, Argentina


DANIEL BRUSCA: Trustee Filing General Report in Court Today
-----------------------------------------------------------
Jorge Juan Gerchkovich, the court-appointed trustee for Daniel
Brusca S.A.'s bankruptcy proceeding, will present before the
National Commercial Court of First Instance in San Martin,
Buenos Aires, general report containing an audit of the firm's
accounting and banking records will be submitted in court on
Aug. 7, 2007.

Mr. Gerchkovich verified creditors' proofs of claim until
May 4, 2007.  He presented the validated claims in court as
individual reports on June 15, 2007.

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

The debtor can be reached at:

         Daniel Brusca S.A.
         Alfredo Bufano 1560
         Buenos Aires, Argentina

The trustee can be reached at:

         Jorge Juan Gerchkovich
         Avenida Corrientes 1847
         Buenos Aires, Argentina


DANY PLAST: Proofs of Claim Verification Deadline Is Sept. 10
-------------------------------------------------------------
The court-appointed trustee for Dany Plast S.R.L.'s bankruptcy
proceeding will verify creditors' proofs of claim Sept. 10.

Infobae didn't state the name of the trustee.

The trustee will present the validated claims in court as
individual reports on Nov. 27, 2007.  The National Commercial
Court of First Instance in Cordoba will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Dany Plast 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 Dany Plast's
accounting and banking records will be submitted in court on
Feb. 28, 2008.

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

The debtor can be reached at:

          Dany Plast S.R.L.
          Bv. Los Alemanes 400, Esquina Mitre
          Barrio Los Boulevares, Ciudad de Cordoba
          Cordoba, Argentina


DELTA AIR: Commences Distribution of 21 Million Common Shares
-------------------------------------------------------------
Delta Air Lines began distribution of approximately 21 million
shares of Delta common stock to holders of allowed general
unsecured claims against the company and certain of its
subsidiaries, as outlined in the Plan of Reorganization.

Delta and its subsidiaries emerged from Chapter 11 protection on
April 30, 2007, under the Plan of Reorganization.

After its emergence from Chapter 11, Delta distributed
approximately 247 million shares of Delta common stock according
to the company's Plan of Reorganization.  This initial
distribution included approximately 230 million shares issued to
Delta creditors and approximately 3 million shares to Comair
creditors.

Delta non-management non-contract employees also received
approximately 14 million shares pursuant to the Plan.

The current distribution of Delta common stock, for claims
settled after the initial distribution, includes approximately
18 million shares for delivery to Delta unsecured creditors and
approximately 3 million shares for delivery to Comair unsecured
creditors.

Once the current distribution is completed, Delta will have
distributed approximately 268 million shares to holders of
allowed and deemed general unsecured claims and non-management
non-contract employees.  Under the Plan, Delta will make a total
distribution of 400 million shares.

With this distribution, holders of allowed general unsecured
claims will have received common shares of the company to
partially satisfy claims valued at approximately
US$11.4 billion.

The company currently estimates its total unsecured claim
exposure, including those that have been partially satisfied, to
be approximately US$15 billion.  The company currently holds
approximately 132 million shares of Delta common stock in
reserve to satisfy the remaining disputed unsecured claims, with
approximately 111 million shares held in reserve for Delta
disputed unsecured claims and approximately 21 million shares
held in reserve for Comair disputed unsecured claims.

Distributions of additional Delta common stock will take place
periodically as remaining claims disputes are resolved. To the
extent that disputed claims become disallowed claims, shares of
Delta common stock reserved for holders of those claims
eventually will be distributed pro rata to holders of allowed
general unsecured claims.

                      About Delta Air

Based in Atlanta, Georgia, Delta Air Lines Inc. (NYSE:DAL) --
http://www.delta.com/-- offers 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.

The Debtors filed a Chapter 11 Plan of Reorganization
accompanied by a 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 Disclosure Statement explaining the Debtors' Plan.
The Plan was confirmed on April 25, 2007.

                        *     *     *

As reported in the Troubled Company Reporter on July 16, 2007,
Fitch Ratings has initiated coverage of Delta Air Lines Inc.
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.


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, $36
million in non-cash expense from fresh start adjustments, $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 US$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 20065.  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 3rd 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 $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.


DISTRIBUIDORA REGIONAL: Claims Verification Ends Tomorrow
---------------------------------------------------------
Juan Carlos D Andrea, the court-appointed trustee for
Distribuidora Regional S.A.C.I.F.I.A.'s reorganization
proceeding, verifies creditors' proofs of claim on Aug. 8, 2007.

Mr. Andrea will present the validated claims in court as
individual reports on Sept. 20, 2007.  The National Commercial
Court of First Instance in Santa Fe will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Distribuidora Regional 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 Distribuidora
Regional's accounting and banking records will be submitted in
court on Nov. 2, 2007.

The informative assembly will be held on May 2, 2008.
Creditors will vote to ratify the completed settlement plan
during the assembly.

The trustee can be reached at:

         Juan Carlos D Andrea
         Mitre 3341, Ciudad de Santa Fe
         Santa Fe, Argentina


HUNTSMAN CORP: Holders Connected w/ MatlinPatterson Sell Shares
---------------------------------------------------------------
Huntsman Corporation disclosed that certain existing
stockholders affiliated with MatlinPatterson Global Advisers LLC
have entered into an underwriting agreement providing for a
registered public secondary sale of 56,979,062 shares of
Huntsman common stock.

This sale is pursuant to the shelf registration statement filed
with the Securities and Exchange Commission on July 31, 2007.
The sale is expected to close on Aug. 6, 2007, subject to
customary closing conditions.

Huntsman will not receive any of the proceeds from this
offering.

Credit Suisse Securities (USA) LLC is the underwriter for the
offering.

A copy of the prospectus and, when available, a copy of the
prospectus supplement may be obtained from:

     Credit Suisse Prospectus Department
     One Madison Avenue
     New York, NY 10010
     Tel 1-800-221-1037

                        About Huntsman

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

                        *     *     *

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


JORGE SEQUENZA: Proofs of Claim Verification Is Until Sept. 13
--------------------------------------------------------------
Hector Julio Spagnuolo, the court-appointed trustee for Jorge
Sequenza S.A.'s bankruptcy proceeding, verifies creditors'
proofs of claim Sept. 13, 2007.

Mr. Spagnuolo will present the validated claims in court as
individual reports on Oct. 31, 2007.  The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Jorge Sequenza 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 Jorge Sequenza's
accounting and banking records will be submitted in court on
Dec. 13, 2007.

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

The debtor can be reached at:

          Jorge Sequenza S.A.
          Rosario 254, Capital Federal y Guatambu y Juan XXXIII,
          Parque Industrial Almirante Brown, Burzaco
          Buenos Aires, Argentina

The trustee can be reached at:

          Hector Julio Spagnuolo
          Tucuman 1452
          Buenos Aires, Argentina


LUKE MUNRO: Proofs of Claim Verification Deadline Is Oct. 3
-----------------------------------------------------------
Hector J. Vesetti, the court-appointed trustee for Luke Munro
S.R.L.'s reorganization proceeding, verifies creditors' proofs
of claim on Oct. 3, 2007.

Mr. Vesetti will present the validated claims in court as
individual reports on Nov. 15, 2007.  The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Luke Munro and its creditors.

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

A general report that contains an audit of Luke Munro's
accounting and banking records will be submitted in court on
Dec. 28, 2007.

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

The debtor can be reached at:

         Luke Munro S.R.L.
         Donato Alvarez 2385
         Buenos Aires, Argentina

The trustee can be reached at:

         Hector Jorge Vegetti
         Montevideo 711
         Buenos Aires, Argentina


PETROLGE SA: Trustee Filing Individual Reports in Court Today
-------------------------------------------------------------
Marcos Urwicz, the court-appointed trustee for Petrolge S.A.'s
bankruptcy proceeding, will present the validated claims in the
National Commercial Court of First Instance No. 24 in Buenos
Aires as individual reports on Aug. 7, 2007

Mr. Urwicz verified creditors' proofs of claim until
June 15, 2007.

A general report that contains an audit of Petrolge's accounting
and banking records will be submitted in court on
Sept. 18, 2007.

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

The trustee can be reached at:

          Marcos Urwicz
          Avenida Corrientes 1250
          Buenos Aires, Argentina


SHINC SA: Proofs of Claim Verification Deadline Is Today
--------------------------------------------------------
Miryam Lewenbaum, the court-appointed trustee for Shinc S.A.'s
bankruptcy proceeding, verifies creditors' proofs of claim until
Aug. 7, 2007.

Ms. Lewenbaum will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance in Buenos Aires will determine if the verified claims
are admissible, taking into account the trustee's opinion, and
the objections and challenges that will be raised by Shinc 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 Shinc's accounting
and banking records will be submitted in court.

Infobae did not state the reports submission deadlines.

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

The debtor can be reached at:

         Shinc S.A.
         Esmeralda 668
         Buenos Aires, Argentina

The trustee can be reached at:

         Miryam Lewenbaum
         Montevideo 666
         Buenos Aires, Argentina


TELEFONICA DE ARGENTINA: Workers Occupy Aerolineas' Call Center
---------------------------------------------------------------
Protesting workers of Telefonica de Argentina have taken over a
Aerolineas Argentina's call center, The Financial Times Limited
reports, citing Aerolineas Argentinas.

Aerolineas Argentinas said in a news release that a group of
affiliates of the Foetra telecommunications employee union
closed down its Buenos Aires call center.

Aerolineas Argentina told The Financial Times, "Telephone
service for attending passengers about reservations, sales and
information has been shut down.

"At this time Aerolineas Argentinas is taking steps before the
corresponding authorities to put an end to this situation as
soon as possible," the airlines said in a statement.

According to The Financial Times, the workers held
demonstrations in front of Aerolineas Argentinas' corporate
headquarters in Buenos Aires.  The protesters were demanding
that Telefonica de Argentina increase their pay by 25%.

The report says that the strikers marched on the offices of
Spanish energy firm Repsol YPF and Brazilian oil firm Petroleo
Brasileiro, which are Telefonica de Argentina clients.  There,
they continued to make their protest in front of TV channel
Telefe, a division of the Telefonica group.

The building housing Aerolineas Argentinas call center is a
Telefonica de Argentina property where the telecommunications
company offers services of data transmission, logistics, and
technical reviews, EFE News relates, citing Foetra spokesperson
Silvia Hidalgo.

"We don't know if Telefonica rents part of the building to
Aerolineas.  In any case, Telefonica would have to explain that.
We have taken over that and other Telefonica properties so the
company can't bring in outside personnel to perform our members'
jobs and break the strike," Mr. Hidalgo commented to BNamericas.

                        About Repsol

Repsol YPF, S.A. is an integrated oil and gas company engaged in
all aspects of the petroleum business, including exploration,
development and production of crude oil and natural gas,
transportation of petroleum products, liquefied petroleum gas
and natural gas, petroleum refining, petrochemical production
and marketing of petroleum products, petroleum derivatives,
petrochemicals and natural gas.  The company operates in four
segments: Exploration and Production, Refining and Marketing,
Chemicals, and Gas and Electricity.

                 About Aerolineas Argentinas

Aerolineas Argentinas operate flights from London to Buenos
Aires, but many of these are routed via Madrid in conjunction
with their Spanish partner Air Plus Comet.

From their main hub at Ministro Pistarini airport (EZE) in
Buenos Aires, Aerolineas Argentinas have a network of long haul-
routes which includes destinations in Europe, North America,
Australia and South Africa, as well as an extensive network of
domestic routes within Argentina and regional connections with
other cities in South America.

                     Petrobras Energia

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

               About Telefonica de Argentina

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.


VALEANT PHARMACEUTICALS: Earns US$16.8 Mil. in Second Qtr. 2007
---------------------------------------------------------------
Valeant Pharmaceuticals International reported revenues totaling
US$231 million for the three months ended June 30, 2007,
compared to US$230.4 million for the three months ended
June 30, 2006.  Product sales for the second quarter 2007
increased 2% to US$212.1 million, compared to US$208.8 million
for the second quarter 2006.  Second quarter 2007 net income was
US$16.8 million, compared to a loss of US$42.3 million for the
second quarter 2006.

As of June 30, 2007, the company posted total cash and
marketable securities of US$386.7 million, as compared with
total cash and marketable securities of US$335.7 million at
Dec. 31, 2006.  The company had Long-term debt of US$776.5
million at the end of the second quarter 2007.

For the six months ended June 30, 2007, the company reported
revenues totaling US$444.4 million, as compared with total
revenues of US$429.9 million for the six months ended
June 30, 2006.  The company had net income of US$25 million for
the first half of 2007, as compared with net loss of US$48.5
million for the first half of 2006.

Timothy C. Tyson, president and chief executive officer, said,
"We are encouraged that product sales improved in the second
quarter, led by growth in many promoted products in North
America and EMEA.  Although it still had a negative impact on
the quarter as a whole, we resolved the wholesaler distribution
issue in Mexico toward the end of the quarter and sales in that
market are returning to normal.  We continue to believe that we
will achieve our goal of industry-average growth for the full
year.  We remained disciplined in our spending, controlling
overhead costs while investing in promoted products and
advancing our development pipeline."

                 Regional Sales Performance

North America product sales increased 8% in the 2007 second
quarter, primarily due to increased sales of Efudex, Cesamet and
Migranal(R).

Sales in the International region decreased 12% in the 2007
second quarter, essentially due to the issues in the Mexican
distribution chain that began earlier in the year.

Sales in the Europe, Middle East and Africa region increased 7%
in the 2007 second quarter, primarily due to the effects of
foreign currency.

                 Share Repurchase Update

On June 11, 2007, the company announced that its board of
directors had approved a share repurchase program that
authorized the company to repurchase up to US$200 million of its
outstanding common stock over a two-year period. In connection
with this program, the company has repurchased 3.7 million
shares of its common stock through July 31, 2007, at an
aggregate amount of US$63 million.  Of the cumulative total, 1.6
million shares were repurchased in the 2007 second quarter at an
aggregate amount of US$28 million.

                    Restructuring Update

The company completed the sale of its manufacturing facilities
in Switzerland and Puerto Rico in June 2007, which concludes the
restructuring plan announced in April 2006.  Restructuring
charges in the 2007 second quarter totaled US$6.3 million,
bringing the overall total restructuring charges to US$152
million, of which US$34 million is cash related.  The
restructuring will result in cost savings of more than US$50
million annually.

Headquartered in Costa Mesa, California, Valeant Pharmaceuticals
International -- http://www.valeant.com-- is a global specialty
pharmaceutical company with US$823 million of 2005 revenues.  It
has offices in Argentina, Singapore and Taiwan.

                        *     *     *

As reported on Jan. 26, 2007, that Moody's Investors Service
confirmed the ratings of Valeant, including the B2 Corporate
Family Rating, and concluded the rating review for possible
downgrade, which was first initiated on October 23, 2006.
Valeant's rating outlook is now stable, Moody's said.

                 About Valeant Pharmaceuticals

Headquartered in Costa Mesa, California, Valeant Pharmaceuticals
International -- http://www.valeant.com/-- is a global
specialty pharmaceutical company with US$823 million of 2005
revenues.  It has offices in Argentina, Singapore and Taiwan.

                        *     *     *

In January 2007, Moody's Investors Service confirmed the ratings
of Valeant, including the B2 Corporate Family Rating, and
concluded the rating review for possible downgrade, which was
first initiated on Oct. 23, 2006.  Valeant's rating outlook is
stable, Moody's said.


VIDRIERIA EL ANGEL: Trustee Filing General Report in Court Today
----------------------------------------------------------------
Julio Cesar Beorleghi, the court-appointed trustee for
Vidrieria El Angel S.A.'s reorganization proceeding, will
present a general report that contains an audit of the firm's
accounting and banking records before the National commercial
Court of First Instance in Dolores on Aug. 7, 2007.

Mr. Beorleghi verified creditors' proofs of claim until
April 17, 2007.  He presented the validated claims in court as
individual reports on June 5, 2007.

The informative assembly will be held on Feb. 7, 2008.
Creditors will vote to ratify the completed settlement plan
during the said assembly.

The debtor can be reached at:

          Vidrieria El Angel S.A.
          Jupiter Esq. Rivadavia, Pinamar
          Buenos Aires, Argentina

The trustee can be reached at:

          Julio Cesar Beorleghi
          Buenos Aires 595, Dolores
          Buenos Aires, Argentina


* ARGENTINA: Launching Plant Engineering Tender with Bolivia
------------------------------------------------------------
Argentine President Nestor Kirchner and Bolivian counterpart Evo
Morales will launch the basic engineering tender for a
US$450-million liquids separation plant on Aug. 10, Business
News Americas reports, citing a spokesperson of Bolivian state-
run oil firm Yacimientos Petroliferos Fiscales Bolivianos.

According to BNamericas, the spokesperson said that the
presidents will start bidding in Tarija, which is near the
border with Argentina.

The report says that the governments planned to launch the
tender on Aug. 3 after opening a data room in July 2007.
However, details like the deadline for the submission of offers
and the number and names of firms that visited the data room
"were not immediately available."

BNamericas relates that the plant is part of the Argentine-
Bolivian US$2-billion GNEA bilateral gas pipeline project.
Bidding for the pipeline began in July 2007.  The pipeline will
be able to transport some 27.7 million cubic meters per day of
natural gas to Argentina, which will benefit these provinces
that lack gas services:

          -- Chaco,
          -- Corrientes,
          -- Formosa,
          -- Santa Fe, and
          -- Missiones.

                        *     *     *

Fitch Ratings assigned these ratings on Argentina:

                     Rating     Rating Date
                     ------     -----------
   Country Ceiling     B+      Aug. 1, 2006
   Local Currency
   Long Term Issuer    B       Aug. 1, 2006
   Short Term IDR      B       Dec. 14, 2005
   Long Term IDR       RD      Dec. 14, 2005




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


ISLE OF CAPRI: Posts US$14.6M of Net Loss in Qtr. Ended April 29
----------------------------------------------------------------
Isle of Capri Casinos Inc. provided Thursday its financial
results for the fourth fiscal quarter and fiscal year ended
April 29, 2007.

The company reported a net loss of US$14.6 million for the
fourth quarter ended April 29, 2007, compared with net income of
US$16.5 million for the fourth quarter ended April 30, 2006.
For the fiscal year ended April 29, 2007, the company reported a
net loss of US$4.6 million, compared with net income of US$18.9
million for the fiscal year ended April 30, 2006.

The company reported a 17.3% decrease in net revenues from
continuing operations to US$255.6 million for the fourth quarter
compared to net revenues from continuing operations of
US$309.1 million for the same quarter in fiscal 2006.  Loss from
continuing operations was US$13.1 million during the fourth
quarter of fiscal 2007 compared to income of US$10.5 million for
the fourth quarter of fiscal 2006.   Adjusted EBITDA from
continuing operations for the fourth quarter of fiscal 2007
decreased 22.9% to US$57.3 million compared to Adjusted EBITDA
from continuing operations of US$74.3 million for the same
quarter in fiscal 2006.

The fourth quarter ended April 29, 2007, included thirteen weeks
of operating results compared to the fourth quarter ended
April 30, 2006, which included fourteen weeks of operating
results.  This accounts for approximately 7.5% of the year over
year decrease in revenues and Adjusted EBITDA.  Other factors
contributing to the year over year declines include increased
competition in several of the company's markets, most
significantly Biloxi, Mississippi and severe weather in several
markets in the first period of the fourth quarter of fiscal
2007.

For the twelve months ended April 29, 2007, the company reported
a 1.4% increase in net revenues from continuing operations to
US$1.0 billion, compared to US$987.4 million for the comparable
period in the prior year.  For the twelve months of fiscal 2007,
the company reported a loss from continuing operations of
US$21.3 million, compared to income of US$8.6 million for the
same period in fiscal 2006.  Adjusted EBITDA from continuing
operations in the twelve-month period reported a 4.5% decrease
to US$194.6 million, compared to US$203.7 million for the
comparable twelve-month period in fiscal 2006.

During the twelve months ended April 29, 2007, the company
recognized a pretax gain of US$23.2 million related to the sale
of its Isle-Bossier City and Isle-Vicksburg properties.  This
gain on sale is included in income from discontinued operations.

Isle-Bossier City, Isle-Vicksburg and Colorado Grande-Cripple
Creek are reflected as discontinued operations for all periods
presented.  Accordingly, the operating results for these
properties are not included in the net revenue, income from
continuing operations and Adjusted EBITDA results.  The sale of
Isle-Bossier City and Isle-Vicksburg closed on July 31, 2006.

"Fiscal 2007 was a transitional year for the company, as we
prepared for the opening of three properties under our new brand
'the isle(R),' in addition to opening a new hotel and acquiring
a new property.  The response from our guests has been very
positive, and we look forward to growing our database and
elevating the gaming experience for our customers.  In addition,
we implemented new technology initiatives that will help us
operate and market more efficiently, and introduced additional
programs across the Company to improve margins," said Bernard
Goldstein, president and chief executive officer.

"Our search for a new president and chief operating officer has
come to a close and we are pleased to welcome Virginia McDowell
to the Isle of Capri family.  We believe that we have selected
the ideal candidate as Virginia brings just the right mix of
gaming expertise and leadership capabilities to her new role.
Everyone has eagerly welcomed Virginia to the Isle of Capri
family," Mr. Goldstein noted.

            Operational Review for the Fourth Quarter

The operating results for the fourth quarter of fiscal 2007
include some significant additional expenses, as compared to the
fourth quarter of fiscal 2006.  These include an increase of
approximately US$4.5 million in property insurance expense over
the prior year's fourth quarter, for a twelve-month total
increase of approximately US$18.0 million over the prior fiscal
year, which was allocated across all operating properties.  The
company also recorded approximately US$1.6 million of stock
compensation expense in the fourth quarter of fiscal 2007, for a
twelve-month total increase of approximately US$7.2 million over
the prior fiscal year.  Pre-opening costs increased US$10.4
million compared to the fourth quarter of fiscal 2006 primarily
due to costs related to the company's casino developments in
Pompano Beach, Florida; Waterloo, Iowa and Coventry, England.

In Mississippi, the company's three continuing operations
contributed 24.3% of net revenues.  Isle-Biloxi's net revenues
and Adjusted EBITDA decreased significantly from abnormally high
prior year operating results due to increased competition in the
market as competitors have re-opened after closures caused by
Hurricane Katrina and while the Isle-Biloxi remains negatively
impacted by the destruction of the Biloxi/Ocean Springs bridge,
which is the primary thoroughfare for travelers from Florida to
east Biloxi where Isle-Biloxi is located.  Two lanes of the
Biloxi/Ocean Springs bridge are scheduled to re-open in November
and the complete new bridge with six lanes is scheduled to re-
open in June 2008.  Isle-Natchez continues to experience
decreases in both net revenues and Adjusted EBITDA primarily
resulting from the re-opening of casinos along the Gulf Coast.
Isle-Lula's net revenues and Adjusted EBITDA decreased slightly
due to increased competition impacting certain of the property's
outlying feeder markets and disruption due to renovations of the
casino floor.

In Louisiana, Isle-Lake Charles contributed 16.8% of net
revenues.  Isle-Lake Charles experienced a decrease in net
revenues and Adjusted EBITDA due to increased competition in the
market as competitors have fully re-opened following closures
caused by Hurricane Rita and post hurricane normalization of
population levels in the property's feeder markets.

In Missouri, the company's two properties contributed 17.2% of
net revenues.  The company's Missouri operations were impacted
by severe winter weather in the first period of the fourth
quarter. Isle-Kansas City's net revenues and Adjusted EBITDA
were down due to increased competition related to the completion
of competitors' expansion projects in the market.  Isle-
Boonville's net revenues and Adjusted EBITDA increased due to
the opening of the company's new hotel and an increase in
marketing efforts.

In Iowa, the company's three casinos contributed 17.7% of net
revenues.  Combined, the company's three Iowa properties, the
Isle-Bettendorf, Rhythm City-Davenport, and Isle-Marquette
showed a decrease in both net revenues and Adjusted EBITDA due
to increased competition in certain of the company's feeder
markets in which it operates, including new and expanded gaming
product by several of its competitors, as well as severe winter
weather in the first period of the fourth quarter.

In Colorado, the company's two Black Hawk casino operations
contributed 15.7% of net revenues.  The Black Hawk properties
experienced a decrease in net revenues and Adjusted EBITDA as
compared to the prior year period primarily due to severe
weather in the first period of the quarter and disruption at the
Colorado Central Station gaming floor as it was redesigned for
wider aisles and the implementation of 100% ticketing
capabilities on slots.

In International operations, Isle-Our Lucaya recorded a reversal
of approximately US$9.4 million in certain prior year expenses
related to the company's agreement with the Bahamian government
and the company's landlord to keep the casino open.
Additionally, the company reversed its US$2.2 million lease
termination fee paid in the first quarter of fiscal 2007, which
has now been recorded as pre-paid rent.

Corporate and other includes the company's corporate office
operations, new development costs and the operating results of
Pompano Park.  The decrease in corporate and other compared to
the fourth quarter of fiscal 2006 is primarily due to a US$6.2
million decrease in new development costs primarily due to costs
incurred in the prior year fiscal quarter related to the pursuit
of gaming licenses in Pittsburgh, Pennsylvania and Singapore.
In December 2006, the company was notified that it was not
awarded either gaming license.  The operating results of Pompano
Park reflected a US$3.6 million decrease in Adjusted EBITDA,
which relates primarily to construction disruption, increased
property insurance premiums and increased repairs and
maintenance costs incurred on the existing track facility prior
to the opening of the Isle-Pompano casino facility.  The Isle
Pompano was only opened for the last two weeks of the fourth
quarter of fiscal 2007.  Also, the increase in corporate and
other expenses includes approximately US$2.0 million in costs
incurred related to the completion of the restatement of the
company's historical financial statements. These increased costs
are partially offset by lower bonus, franchise taxes and other
legal costs.

The company recorded a US$7.8 million valuation charge during
the fourth quarter of fiscal 2007 related to the Isle-Lula,
based on lower projected cash flows going forward.
Comparatively, the company recorded a US$13.4 million valuation
charge in the fourth quarter of fiscal 2006 related to its Blue
Chip, plc operations in the United Kingdom and the Isle-Our
Lucaya.

At April 29, 2007, the company's consolidated balance sheet
showed US$2.08 billion in total assets, US$1.77 billion in total
liabilities, US$27.8 million in minority interest, and US$281.8
million in total stockholders' equity.

Full-text copies of the company's consolidated financial
statements for the year ended April 29, 2007, are available for
free at http://researcharchives.com/t/s?2210

                  About Isle of Capri Casinos

Based in Biloxi, Missippi 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 percent 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% Senior Subordinated
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 O L I V I A
=============


* BOLIVIA: Launching Plant Engineering Tender with Argentina
------------------------------------------------------------
A spokesperson of Bolivian state-run oil firm Yacimientos
Petroliferos Fiscales Bolivianos told Business News Americas
that President Evo Morales and his Argentine counterpart Nestor
Kirchner will launch the basic engineering tender for a US$450-
million liquids separation plant on Aug. 10.

According to BNamericas, the spokesperson said that the
presidents will start bidding in Tarija, which is near the
border with Argentina.

The report says that the governments planned to launch the
tender on Aug. 3 after opening a data room in July 2007.
However, details like the deadline for the submission of offers
and the number and names of firms that visited the data room
"were not immediately available."

BNamericas relates that the plant is part of the Argentine-
Bolivian US$2-billion GNEA bilateral gas pipeline project.
Bidding for the pipeline began in July 2007.  The pipeline will
be able to transport some 27.7 million cubic meters per day of
natural gas to Argentina, which will benefit these provinces
that lack gas services:

          -- Chaco,
          -- Corrientes,
          -- Formosa,
          -- Santa Fe, and
          -- Missiones.

                        *     *     *

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
   Default Rating     B-       Dec. 14, 2005




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


ADVANCED MICRO: Moody's Lowers US$390-Million Notes Rating to B2
----------------------------------------------------------------
Moody's Investors Service revised down the ratings of Advanced
Micro Devices' US$390 million senior notes due 2012 to B2 from
Ba2 and revised up the ratings of the US$1.6 billion term loan
due 2013 to Ba1 from Ba2.  This revision reflects the release of
collateral that had benefited the 2012 notes, and AMD's partial
repayment of its secured term loan from proceeds of the US$2.2
billion senior convertible notes due 2014 (not rated).  The
rating outlook remains negative.

Moody's noted in a press release dated April 30, 2007, "it is
likely that the 2012 Note will become unsecured in the near
future.  Since AMD's secured debt as defined is below US$2.5
billion, AMD, as stated in its 8K filing of April 24, 2007, has
the ability to release collateral that currently benefits the
2012 note.  To the extent that the 2012 Note loses its
collateral interest, its rating would be lowered to B2 with a
corresponding LGD5 assessment while the bank term loan would
likely be raised to Ba1 and LGD2 assessment."

In line with Moody's loss given default methodology, the 2012
Note's B2 ratings have a corresponding LGD5, 73% assessment and
the Ba1 term loan ratings have a corresponding LGD2, 18%
assessment.

Ratings/assessments revised down:

   -- US$390 million senior unsecured notes due August 2012 to
      B2 (LGD5, 73%) from Ba2 (LGD 2, 22%)

Ratings/assessments revised up:

   -- US$1.6 billion senior secured term loan due 2013 to Ba1
      (LGD2, 18%) from Ba2 (LGD 2, 22%)

Ratings/assessments affirmed:

   -- Corporate family rating B1;
   -- Probability-of-default rating B1;

Rating Outlook Negative.

Advanced Micro Devices Inc. -- http://www.amd.com/-- (NYSE:
AMD) designs and manufactures microprocessors and other
semiconductor products.

The company has a facility in Singapore. It has sales offices in
Belgium, France, Germany, the United Kingdom, Mexico and Brazil.


BANCO DAYCOVAL: Hires UBS Pactual as Market Marker
--------------------------------------------------
Banco Daycoval has named investment bank UBS Pactual as its
market marker, UBS Pactual said in a statement.

Business News Americas relates that UBS Pactual and Goldman
Sachs served in June 2007 as joint bookrunners for Banco
Daycoval's initial public offering on the Sao Paulo stock
exchange Bovespa.  Banco Daycoval raised BRL1.09 billion from
the sale of 64.3 million preferred shares at BRL17.00 each.
Foreign investors purchased 69.8% of the shares offered.
Investment funds bought 19.0%, while retail investors purchased
8.20%.

Banco Daycoval's net profits increased 164% to BRL46.5 million
in the second quarter 2007, from the same period in 2006,
excluding the impact of the initial public offering.  It had
BRL3.89 billion in total assets in June 2007.

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

As reported in the Troubled Company Reporter-Latin America on
June 26, 2007, Standard & Poor's Ratings Services removed its
long-term counterparty credit rating on Banco Daycoval S.A. from
CreditWatch Positive, where it was placed on June 11, 2007, and
raised the rating to 'BB-'.  At the same time, S&P affirmed its
'B' short-term counterparty credit rating on the bank.  S&P said
the outlook was stable.


BANCO NACIONAL: Okays BRL1.5-Mil. Loan Restoring Church Project
---------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social aka BNDES'
board of directors approved financial support under the Rouanet
Law ambit, in the amount of BRL1.5 million, as sponsorship, for
the restoring and remodeling project of the Santa Efigenia
church - in the city of Ouro Preto [State of Minas Gerais],
founded in 1717, in the Nossa Senhora da Conceicao parish.

The church is considered the main temple of the blacks
fraternity and was built where a primitive mud chapel stood,
dedicated to Santa Efigenia.  To get there, one needs to climb a
steep slop plus 42 steps of a stairway carved in stone.  The
church presents various elements of the African culture, such as
helmet shell divination, ram and goat horns, marks of the
initiation, inserted in its baroque score.

The images are old; some representing colored saints - such as
Santa Efigenia and Sao Benedito - and the primitive image of
Nossa Senhora do Rosario.  The building possesses an adjacent
part to the right, and to the left, a cemetery of the
Brotherhood, built in the 19th Century.

In the past century, the Church endured adaptations, repairs and
restorations, but currently it is found with problems both as to
its architectonic portion and as to its integrated elements.

In the year 2000, it was carried out the restoration in the
covering portion and the extermination of termites from objects,
besides the replacement of a blocking piece of the side wall of
the superior balcony, decayed by the termites.  However, the
efforts did not hold back the action of the insects.  Right now,
many portions of the wood blockades and artistic elements are
already very deteriorated, therefore, needing to be replaced.

Some recent and improper interventions were made in the interior
of the Church, such as the removal of the coating for the
electric installation wires.  The restoration is necessary as
the continuous action of the termites is evident in the body of
the construction and in the wooden structure.  The sorry
conservation status due to abandonment in the past decades
enabled the continuous action of rainwater all around the
edification, causing degradation of roof covers, flooring and
frames.

BNDES' support to the project is of 83% of its total budget.
The resources are destined to the restoration and conservation
of the artistic elements of the main chapel, roof covers of the
main edifice body, roof cover of the vestry-room, side altars,
main altar, consistory, railing and hydraulic tile of the
atrium, frames, church flooring and all the disinfection and
immunization process of the church.

The interventions will be the smallest possible, always
considering the church's characteristics and evolutions,
following technical conservation and restoration criteria,
purposing to maintain the originality and integrity of the
monument.

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

                        *     *     *

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


BANCO SUMITOMO: Moody's Withdraws All Ratings
---------------------------------------------
Moody's Investors Service has withdrawn all of its ratings for
Banco Sumitomo Mitsui Brasileiro S.A. for business reasons.

The bank has no rated foreign currency debt outstanding.

This action does not reflect a change in Banco Sumitomo's
creditworthiness.

These ratings were withdrawn:

   * Bank Financial Strength Rating: D+, with stable outlook

   * Long and Short-Term Local Currency Deposit Ratings: A3 /
     Prime-2, stable outlook

   * Long and Short-Term Foreign Currency Deposit Ratings: Ba3 /
     Not Prime, under review for possible upgrade

   * Long and Short Term National Scale Ratings in Brazil:
     Aaa.br / BR-1, with stable outlook

As of December 2006, Banco Sumitomo Mitsui Brasileiro S.A. had
total assets of BRL1 billion (US$468 million) and equity of
BRL214 million (US$100 million).


DRESSER-RAND: Unable to Agree on Labor Contract with IUE-CWA
------------------------------------------------------------
Dresser-Rand Group Inc. and IUE-CWA Local 313 negotiating teams
failed to reach agreement on a new contract, resulting in a
strike at the facility.  The contract expired Aug. 3, 2007.

Elizabeth C. Powers, Vice President and Chief Administrative
Officer said, "We are very disappointed in not being able to
reach a satisfactory agreement.  Ms. Powers said that the
company is now in the process of implementing a multi- phase
contingency plan that has been designed to allow for
uninterrupted service to its clients."

The company stated in its second quarter 2007 earnings release
of July 31, 2007, that it maintains its commitment to the long
term competitiveness of its operations and believes any short
term adverse impacts to its business are worth incurring for
whatever period necessary to meet its long term objectives.

Dresser-Rand Group Inc. (NYSE: DRC) is among the largest
suppliers of rotating equipment solutions to the worldwide oil,
gas, petrochemical, and process industries.  It operates
manufacturing facilities in the United States, France, Germany,
Norway, India, and Brazil, and maintains a network of 24 service
and support centers covering 105 countries.

                        *     *     *

Standard & Poor's Ratings Services raised on Sept. 13, 2006, its
corporate credit rating on rotating equipment maker Dresser-Rand
Group Inc. to 'BB-' from 'B+' and revised the outlook on the
rating to stable from positive.


EMI GROUP: Moody's Lowers Corp. Family & Sr. Debt Ratings to B1
---------------------------------------------------------------
Moody's Investors Service has downgraded EMI Group plc's
corporate family and senior debt ratings to B1 (from Ba3).  All
ratings remain under review for downgrade.  The rating action
follows the announcement that the cash offer for EMI made by
Maltby Limited (Maltby; a company formed at the direction of
private equity firm Terra Firma Capital Partners Limited) in May
2007 which placed an enterprise value of GBP 3.2 billion on EMI,
has been accepted by 90.3% of shareholders of the company and
that the bid has been declared unconditional as to acceptances.
The transaction is scheduled to close in the third calendar
quarter.  Maltby has indicated that it will use a mixture of
equity and debt to fund its bid.  While details of the funding
structure have not been disclosed, Moody's would expect the
company's already considerable debt load to increase visibly.
EMI's Debt/ EBITDA leverage ratio as measured by Moody's was 7.7
times for the financial year ended March 31 2007.

Ratings downgraded to B1 (under review for further downgrade)
are:

   EMI Group plc

      -- CFR and the ratings of the 8.25% GBP bonds due 2008 and
         the 8.625% Euro notes due 2013

   Capitol Records Inc. (gtd. by EMI Group plc)

      -- the rating of the 8.375% guaranteed notes due 2009.

All ratings remain under review for possible downgrade.  Maltby
has not yet signalled whether any of the rated instruments are
expected to form part of EMI's capital structure to the extent
they remain outstanding under their terms.  Moody's ongoing
review will now be focussed on:

    (i) the new entity's capital structure and financial
        policies

   (ii) the relative position of the rated instruments within
        the new capital structure and their relative ranking
        amongst each other and relative to other classes of debt
        (to the extent they remain outstanding) and

  (iii) the outlook for the global music markets and the
        company's operational plans.

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

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

The company issued two profit warnings since January 2007.


MILACRON INC: Incurs US$100,000 Net Loss in Qtr. Ended June 30
--------------------------------------------------------------
Milacron Inc. posted a net loss for the second-quarter ended
June 30 of US$0.1 million on sales of US$197 million.  (Per
share amounts include accrual for preferred dividends).  This
compares to a net loss of US$14.3 million on sales of US$211
million in the second quarter of 2006.  Results in the second
quarter of 2007 included a US$4.9 million tax benefit and US$1.5
million in restructuring costs with no tax benefit, whereas the
year-ago quarterly loss included a US$0.9 million provision for
income taxes and US$8.8 million in restructuring charges also
without tax benefit.

"Throughout the world our employees are working hard executing
our strategies and we are seeing positive benefits from these
efforts," said Ronald D. Brown, chairman, president and chief
executive officer.  "The previously announced cost-reduction
measures are generating the savings we projected.  Moreover, we
continue to achieve positive results from our key sales growth
initiatives: expanding our presence in emerging markets, while
focusing more attention on aftermarket services in our
traditional markets of North America and Western Europe.
Milacron's orders from emerging markets are up 23% over last
year and now constitute nearly one-quarter of our total
business.  And our aftermarket sales have grown another 6% so
far this year," he said.

Sales and earnings growth in overseas markets continued to
offset the ongoing weakness in the automotive and housing
sectors of the North American economy. New orders in the quarter
were US$202 million, compared to US$200 million in the second
quarter last year, with favorable currency translation effects
accounting for the increase.  The backlog of unfilled orders
rose to US$132 million, up from US$127 million at the end of the
first quarter and US$107 million a year ago.  Manufacturing
margins in the second quarter improved to 19.6% from 19.1% in
the second quarter 2006, primarily as a result of cost-reduction
initiatives.

Cash on hand at the end of the quarter was in excess of US$31
million, and the company had more than US$33 million available
for borrowing under its asset-based revolving credit facility.
Liquidity (cash plus borrowing availability) of US$65 million
was down from US$73 million at the beginning of the quarter.
The change was primarily the result of a semi-annual interest
payment of US$13 million made in May, partially offset by
primary working capital reductions during the quarter.

                           Outlook

"With our increased backlog, Milacron is poised to show
continued quarterly improvement in sales and operating earnings
in the second half of the year.  Outside of North America, we're
enjoying good growth in virtually all our major markets.  And in
North America we are dealing with the current downturn through
cost reductions and other measures, all the while maintaining
the resources needed to take advantage of an eventual recovery.
At this point we are projecting approximately 3% overall sales
growth in 2007, with significantly improved operating profits,"
Mr. Brown said.

                          Dividends

No dividends were declared on Milacron's common stock.  The
board declared a quarterly dividend of US$10.00 per share on its
4% Series A cumulative preferred stock.  The company continues
to accrue dividends on its 6% Series B convertible preferred
stock.  Milacron currently has outstanding: 6,000 shares of 4%
cumulative preferred stock, 500,000 shares of 6% Series B
convertible preferred stock, and approximately 5.5 million
shares of common stock.

Headquartered in Cincinnati, Ohio, Milacron Inc. (NYSE: MZ)
-- http://www.milacron.com/-- is a global manufacturer
and supplier of plastics-processing equipment and related
supplies.  Milacron is also one of the largest global
manufacturers of synthetic water-based industrial fluids used in
metalworking applications.  The company has major manufacturing
facilities in Brazil, North America, Europe, and Asia.
Milacron's annual revenues approximated US$805 million over the
last twelve months.

                        *     *     *

As reported in the Troubled Company Reporter on Jan. 2, 2007,
Standard & Poor's Ratings Services revised its outlook on
Cincinnati, Ohio-based Milacron Inc., to developing from
negative.  At the same time, Standard & Poor's affirmed its
ratings on the company, including its 'CCC+' corporate credit
rating.


PETROLEOS DE VENEZUELA: Abreu Project Gets Preliminary License
--------------------------------------------------------------
Venezuelan state-owned oil firm Petroleos de Venezuela SA's
Abreu e Lima oil plant project with Brazilian counterpart has
secured a preliminary license from the Pernambuco state
government, Brazilian state environmental agency CPRH said in a
statement.

Petroleo Brasileiro told Business News Americas that the Abreu e
Lima oil plant will be able to process some 200,000 barrels per
day of heavy oil.  It will need an investment of BRL10 billion.

BNamericas relates that Petroleo Brasileiro has partnered with
Petroleos de Venezuela on the project.

State environment secretary Aristides Monteiro said in a
statement, "A request from Pernambuco governor Eduardo Campos
made CPRH speed up work to grant the preliminary license while
respecting current environmental legislation."

A Petroleo Brasileiro spokesperson told BNamericas that the firm
will then seek a construction license to begin building the
plant.

The spokesperson commented to BNamericas, "We forecast the
license will be granted by end-August."

CPRH told BNamericas that the operating license would be granted
in 2010.

"The Abreu e Lima project is still in its development stage and
we cannot know when the construction will be concluded," the
spokesperson commented to BNamericas.

According to BNamericas, the spokesperson said that Petroleo
Brasileiro had signed a contract for earthwork, draining and
paving for Abreu e Lima with these engineering and construction
firms:

          -- Odebrecht,
          -- Galvao Engenharia,
          -- Queiroz Galvao, and
          -- Camargo Correa.

                 About Petroleo Brasileiro

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.

                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.


TAM SA: Will Pay Families of All Crash Victims
----------------------------------------------
TAM has assured the families of victims of the July 17, 2007,
plane crash at the Congonhas airport in Sao Paulo that it will
pay all claims, even if the insurance policy from Unibanco AIG
doesn't provide sufficient funds, Business News Americas
reports.

According to BNamericas, about 199 died from the accident.

As reported in the Troubled Company Reporter-Latin America on
July 30, 2007, TAM reportedly paid an undisclosed amount to a
family of one of the victims of the July 17 crash that killed
about 200 people.  Unibanco AIG provided TAM with aircraft hull
and civil liability coverage for up to US$1.5 billion.

The policy includes victims' claims and coverage for damage to
homes and businesses near the site of the accident, BNamericas
states.

                     About Unibanco AIG

Based in Sao Paulo, Brazil, Unibanco AIG Seguros & Previdencia,
is part of Unibanco and worldwide U.S. based insurance and
finance organization AIG (American International Group).  The
Group operates in more than 130 countries around the world, and
established a business in Brazil in 1948.  In 1997 Unibanco, one
of the largest financial institutions in Brazil, and AIG, formed
an alliance and in 2001 they established the company Unibanco
AIG Seguros & Previdencia.  The company offers insurance in the
areas of family, individual and commercial life, accident, auto
and education for businesses and individuals.

                         About TAM

TAM SA -- http://www.tam.com.br/-- operates regular flights to
47 destinations throughout Brazil.  It serves 72 different
cities in the domestic market through regional alliances.
Additionally, it maintains code-share agreements with
international airline companies that allow passengers to travel
to a large number of destinations throughout the world.  TAM was
the first Brazilian airline company to launch a loyalty program.
The program has over 3.3 million subscribers and has awarded
more than 3.6 million tickets.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
July 25, 2007, Fitch affirmed the 'BB' foreign currency and
local currency Issuer Default Ratings of TAM S.A.  Fitch has
also affirmed the 'BB' rating of its US$300 million of senior
unsecured notes due 2017 as well as the company's 'A+(bra)'
national scale rating and for its first debentures issuance
(BRL500 million).  Fitch said the rating outlook was stable.


TECUMSEH PRODUCTS: Names Edwin Buker as Chief Executive Officer
---------------------------------------------------------------
Tecumseh Products Company has appointed Edwin "Ed" L. Buker as
its chief executive officer.

Mr. Buker, whose appointment is effective Aug. 13, 2007, joins
Tecumseh from Citation Corporation, a supplier of metal
components based in Birmingham, Alabama, where he had served as
president and chief executive officer since March 2002.

Prior to joining Citation, Mr. Buker served as vice president
and general manager of the Chassis Systems Division at Visteon
Automotive; as president, Electrical Systems-The Americas, for
United Technologies Automotive; and as vice president of new
model development for BMW Manufacturing Corporation in Munich,
Germany.

He also held leadership positions at BMW's Spartanburg, South
Carolina, facility and at Honda's East Liberty, Ohio,
manufacturing plant.  Among other accomplishments, Mr. Buker was
co-leader of the design, building and operations management of
Honda's East Liberty facility and of BMW's Spartanburg plant.
Mr. Buker holds a bachelor's degree in mechanical engineering
from Tri-State University in Angola, Indiana, and an MBA from
Ohio University in Athens, Ohio.

"The appointment of Ed Buker as chief executive officer adds a
seasoned, proven, highly successful executive to Tecumseh,"
David M. Risley, chairman of Tecumseh, said.  ''His
manufacturing expertise, customer orientation and overall
management and strategic acumen make him an ideal choice to lead
Tecumseh's continuing efforts to improve its operational and
financial performance."

Mr. Buker will become a member of Tecumseh's board of directors
when he joins the company this month, and will eventually
succeed Mr. Risley as chairman.

Since January 2007, the company has been functioning under the
leadership of interim president and chief operating officer
James J. Bonsall, who will provide transition services to
Mr. Buker before returning to his ongoing role as a managing
director of AlixPartners LLP.

"Jim Bonsall provided capable leadership at a challenging time
for the company," Mr. Risley said.  I want to thank Jim for his
outstanding work at Tecumseh in our continuing efforts to place
the company on a solid strategic, operational and financial
footing.  Tecumseh has a long and proud history of serving
customers around the world.  We look forward to Ed's role as a
team builder and team leader as Tecumseh continues to serve its
customers and drive for improved performance and market
position."

                About Tecumseh Products Company

Headquartered in Tecumseh, Mich., Tecumseh Products Company
(Nasdaq: TECUA, TECUB) -- http://www.tecumseh.com/--
manufactures hermetic compressors for air conditioning and
refrigeration products, gasoline engines and power train
components for lawn and garden applications, submersible pumps,
and small electric motors.  The company has offices in Italy,
United Kingdom, Brazil, France, and India.

At March 31, 2007, the company's balance sheet showed total
assets of US$97.3 million, total liabilities of US$101.4
million, resulting to a shareholders' deficit of US$4.1 million.


TIMKEN CO: Board Declares US$0.17 Per Share Quarterly Dividend
--------------------------------------------------------------
The Timken Company's board of directors has declared a quarterly
cash dividend of 17 cents per share, an increase of 1 cent per
share.  The dividend is payable on Sept. 5, 2007, to
shareholders of record as of Aug. 17, 2007.  It will be the
341st consecutive dividend paid on the common stock of the
company.

Headquartered in Canton, Ohio, The Timken Company (NYSE: TKR) --
http://www.timken.com/-- is a manufacturer of highly engineered
bearings and alloy steels.  It also provides related components
and services such as bearing refurbishment for the aerospace,
medical, industrial and railroad industries.  The company has
operations in Argentina, Australia, Belgium, Brazil, Canada,
China, Czech Republic, England, France, Germany, Hungary, India,
Italy, Japan, Korea, Mexico, Netherlands, Poland, Romania,
Russia, Singapore, South America, Spain, Taiwan, Turkey, United
States, and Venezuela and employs 27,000 employees.

                        *     *     *

The Timken Company carries Moody's Ba1 Long-Term Corporate
Family, Senior Unsecured Debt and Probability-of-Default
Ratings.  Moody's said the outlook was stable.


TOWER AUTOMOTIVE: Appoints Mark Malcolm as CEO & President
----------------------------------------------------------
Tower Automotive today has named Mark Malcolm President and
Chief Executive Officer, effective immediately.  Mr. Malcolm
succeeds Kathleen Ligocki who is leaving the company.

Earlier this week Tower announced that on July 31, it closed the
sale of substantially all of its assets to an affiliate of
Cerberus Capital Management.  The sale was approved by the U.S.
Bankruptcy Court for the Southern District of New York on July
11 as part of the company's Reorganization Plan.

Mr. Malcolm joins Tower from Cerberus, where he has been serving
as a lead automotive consultant for the past 18 months,
including considerable involvement with Tower for the past year.
He also served on the Board of the Traxis Group, which includes
the Blue Bird school bus company.  Prior to joining Cerberus,
Mr. Malcolm spent 28 years with Ford Motor Co. in a variety of
senior financial positions.

"The efforts and accomplishments of the Tower team around the
globe to emerge from bankruptcy provide justifiable optimism for
our future," said Mr. Malcolm.  "The auto business is and will
remain very competitive.  There is always more to do, but Tower
is prepared and determined to compete for customer business and
profitable growth around the world.

"I have tremendous respect for Kathleen Ligocki," added
Mr. Malcolm.  "Her leadership was instrumental in steering the
company through bankruptcy and positioning it for the future."

Said Mr. Ligocki, "I am proud of Tower's accomplishments and
grateful for the support of our colleagues, customers, and
suppliers these past four years.  Mark is an excellent choice to
lead the company.  I wish Mark and all the Tower colleagues well
as they now face the global marketplace as part of a much
stronger company."

In his most recent assignment with Ford, Mr. Malcolm was
Executive Vice President and Controller of Ford Motor Credit.
From 2002 to 2004, he was Director of Finance & Strategy for
Ford Global Purchasing.  Prior to that, he was Director of
Worldwide Accounting for Ford, CFO of Visteon and head of
Finance for Ford's Vehicle Operations, including its stamping
business.

Mr. Malcolm resides in Plymouth, Mich., with his wife Patty and
two daughters.  He is active in the community and serves on the
Plymouth Downtown Development Authority.

                    About Tower Automotive

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

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

On May 1, 2007, the Debtors filed their Chapter 11 Plan of
reorganization and Disclosure Statement explaining that plan.
On June 4, 2007, the Debtors submitted an Amended Plan and
Disclosure Statement.  The Court approved the adequacy if the
Amended Disclosure Statement on June 5, 2007.

As reported in the Troubled Company Reporter-Latin America on
Aug. 2, 2007, The company and its debtor subsidiaries' First
Amended Joint Plan of Reorganization became effective on
July 31, 2007, Anup Sathy, Esq., at Kirkland & Ellis LLP, in
Chicago, Illinois, informs the U.S. Bankruptcy Court for the
Southern District of New York.


* BRAZIL: Gov't Grants Preliminary License for Abreu Project
------------------------------------------------------------
Brazilian state environmental agency CPRH said in a statement
that the Pernambuco state government has granted a preliminary
license for the country's state-owned oil firm Petroleo
Brasileiro SA and Venezuelan counterpart Petroleos de Venezuela
SA to construct the Abreu e Lima oil plant.

Petroleo Brasileiro told Business News Americas that the Abreu e
Lima oil plant will be able to process some 200,000 barrels per
day of heavy oil.  It will need an investment of BRL10 billion.

BNamericas relates that Petroleo Brasileiro has partnered with
Petroleos de Venezuela on the project.

State environment secretary Aristides Monteiro said in a
statement, "A request from Pernambuco governor Eduardo Campos
made CPRH speed up work to grant the preliminary license while
respecting current environmental legislation."

A Petroleo Brasileiro spokesperson told BNamericas that the firm
will then seek a construction license to begin building the
plant.

The spokesperson commented to BNamericas, "We forecast the
license will be granted by end-August."

CPRH told BNamericas that the operating license would be granted
in 2010.

"The Abreu e Lima project is still in its development stage and
we cannot know when the construction will be concluded," the
spokesperson commented to BNamericas.

According to BNamericas, the spokesperson said that Petroleo
Brasileiro had signed a contract for earthwork, draining and
paving for Abreu e Lima with these engineering and construction
firms:

          -- Odebrecht,
          -- Galvao Engenharia,
          -- Queiroz Galvao, and
          -- Camargo Correa.

                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.

                 About Petroleo Brasileiro

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.

                        *     *     *

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: Mulls Sale of 30-Year Bonds
-------------------------------------
Brazil's Treasury Secretary Arno Augustin told Bloomberg News
that the government plans to sell 30-year real-denominated bonds
in international markets to extend debt maturities.

The nation has recently called off a scheduled bond issue citing
unstable market conditions.

"We will wait for the turbulence to pass, and we'll resume our
plan," the government official told Bloomberg.

This latest planned issuance would be Brazil's longest maturity.
On June 19, the South American nation sold BRL750 million of
bonds due 2028 in international markets, Bloomberg recalls.

According to the same report, the Treasury sold the 10-1/4
percent bonds in the U.S. and Europe to yield 8.63 percent.
That yield is lower than the 8.94 percent it paid to sell BRL750
million of the same bonds on May 10.

                        *     *     *

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: State Firm Acquires Suzano Shares for BRL2.7 Billion
--------------------------------------------------------------
Brazilian state-owned oil company Petroleo Brasileiro SA aka
Petrobras has signed an agreement for the acquisition of the
totality of the shares representing Suzano Petroquimica S.A.'s
joint stock held, directly or indirectly, by Suzano Holding
S.A.'s controllers, for the total of BRL2.7 billion, BRL2.1
billion of which for the controllers, while BRL600 million in a
public offer to the minority shareholders.  The company will
convene an Extraordinary General Shareholder Assembly to ratify
the operation.

The acquisition of these assets will appreciate Petrobras'
petrochemical participation portfolio as it contributes to the
consolidation of the Southeastern Petrochemical Pole.  As
foreseen in its Strategic Plan, Petrobras has been making
selective investments in the Brazilian and Southern Cone
petrochemical sector, in projects that add value to oil, natural
gas, and to the refining currents, operating in an integrated
manner in all of the sector's areas.

                      Operation Stages

The operation will be divided into three states:

   1) Acquisition of the shares held by SZPQ's direct and
      indirect controllers.

   2) Tag Along public offer to acquire the ordinary and
      preferred shares issued by Suzano that are circulating in
      the market, under the conditions provided for by Art.
      254-A Law 6.404/76 and CVM Instruction No. 361, in
      Bovespa's Level 2 Listing Regulation, and in the company's
      Bylaws (right to joint sale, or Tag Along, at the ratio of
      100% and 80% of the unit price per ordinary share for the
      ordinary and preferred shares that are the object of the
      offer, respectively).

   3) Public Offer to Cancel Suzano PetroquĦmica's Registration
      as a Publicly Traded corporation.

                 Suzano's Indirect Controllers'
                       Shares Acquisition

Petrobras will purchase 97.3 million ordinary shares for up to
R$13.44 per share, and 75.2 million preferred shares for up to
BRL10.76 per share.  This acquisition corresponds to a 99.9%
share participation in ordinary shares, and to a 58.2%
participation in the preferred shares issued by Suzano,
representing 76.1% of the total capital.

                   Public Offer for the Shares

Due to the alienation of Suzano's control, Petrobras, in
compliance with the legal precepts applicable to this mode of
transaction, will send the CVM, within the legal period, a
request to register a public offer for the acquisition of
ordinary and preferred shares held by Suzano Petroquimica's
minority shareholders, for up to BRL13.44 per ordinary share and
for up to BRL10.76 per preferred share for cash payment.

           Public Offer for Registration Cancellation

Petrobras must send to the CVM, within 30 days, a request to
register a public offer to cancel Suzano's registration as
publicly traded corporation, under the terms of Art. 4,  4, Law
6.404/76, and CVM Instruction No. 361.

If the public offer for registration cancellation has the same
financial terms as the Tag Along Public Offer, the value to be
disbursed will be BRL600 million, capping the acquisition of
100% of Suzano PetroquĦmica's shares at BRL2.7 billion, BRL2.1
billion of which for the controllers.

                Leadership & Pioneering Spirit

Suzano Petroquimica has been in the market for 30 years.  It is
the Latin American leader in polypropylene resin production and
ranks second in Brazil in thermoplastic resin manufacturing.  It
holds joint control over Rio Polimeros S.A., with 33.3%
participation.  Petrobras already owns, indirectly, 16.7% of Rio
PolĦmeros S.A.'s total capital, while Petroflex owns 20.1% of
its joint stock.

Rio Polimeros S.A. pioneered polyethylene production from
natural gas in Brazil; meanwhile, Petroflex is Latin America's
biggest synthetic rubber producer.  Suzano also holds 6.8% of
Petroquimica Uniao's joint stock, in which Petrobras also
already participates, indirectly, with 17.4%.

Suzano Petroquimica operates an industrial park composed of
three polypropylene resin production units located in the
municipalities of Maua (SP), Duque de Caxias (RJ), and Camacari
(BA), which, together, have an annual capacity to produce
685,000 tons of the product.  It also participates in production
at Rio PolĦmeros S.A. (capable of manufacturing 540,000 tons of
polyethylene a year), Petroflex (422,000 tons of synthetic
rubber a year), and in PetroquĦmica Uniao's raw material
central. In the first half of 2007, the company's consolidated
net revenue was BRL1.331 billion, and its net profit was BRL126
million.

The operation will be presented to the Brazilian authorities in
charge of defending competition (Administrative Economic Defense
Council, CADE; Economic Right Department, SDE; and Economic
Follow-up Department, SEAE) within the deadline and manner set
forth by the legislation in effect.  Petrobras will keep its
shareholders and the market informed regarding the operation's
conclusion in a timely and appropriate manner.

The company hereby informs Suzano PetroquĦmica's workforce it is
intent to continue investing in growing the new company in the
Petrobras System, the mission of which is to contribute to the
development of Brazil and of the countries where Petrobras
operates, with social and environmental responsibility.

                   About Petroleo Brasileiro

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.

                         *    *     *

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


ABACUS FUND: Will Hold Final Shareholders Meeting on Aug. 10
------------------------------------------------------------
Abacus Fund Ltd. will hold its final shareholders meeting on
Aug. 10, 2007, at 11:30 a.m., at the office of the company.

These agendas will be taken during the meeting:

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

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

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

The liquidators can be reached at:

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


ACORN ALTERNATIVE: Proofs of Claim Filing Is Until Aug. 10
----------------------------------------------------------
Acorn Alternative Strategies (Overseas) Ltd.'s creditors are
given until Aug. 10, 2007, to prove their claims to Linburgh
Martin and John Sutlic, 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.

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

The liquidator can be reached at:

        Linburgh Martin
        Attention: Kim Charaman
        Close Brothers (Cayman) Limited
        Fourth Floor, Harbour Place
        P.O. Box 1034, Grand Cayman KY1-1102
        Cayman Islands
        Tel: (345) 949 8455
        Fax: (345) 949 8499


ANTHRACITE BALANCED: Proofs of Claim Filing Deadline Is Aug. 9
--------------------------------------------------------------
Anthracite Balanced Co.'s creditors are given until
Aug. 9, 2007, to prove their claims to Scott Aitken and Connan
Hill, the company's liquidators, or be excluded from receiving
any distribution or payment.

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

Anthracite Balanced shareholders agreed on June 20, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

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


ANTHRACITE BALANCED: Sets Final Shareholders Meeting for Aug. 9
---------------------------------------------------------------
Anthracite Balanced Co. will hold its final shareholders meeting
on Aug. 9, 2007, at 10:00 a.m.:

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

These agendas will be taken during the meeting:

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

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

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

The liquidators can be reached at:

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


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

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

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

The liquidator can be reached at:

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


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

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

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

The liquidator can be reached at:

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


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

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

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

The liquidator can be reached at:

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


CHESHIRE FINANCE: Proofs of Claim Filing Deadline Is Aug. 9
-----------------------------------------------------------
Cheshire Finance Ltd.'s creditors are given until Aug. 9, 2007,
to prove their claims to Hugh Thompson and Joshua Grant, the
company's liquidators, or be excluded from receiving any
distribution or payment.

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

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

The liquidators can be reached at:

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


CORSAIR II: Proofs of Claim Filing Deadline Is Aug. 13
------------------------------------------------------
Corsair II Offshore Cayman Ltd.'s creditors are given until
Aug. 13, 2007, to prove their claims to Amy Soeda, 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.

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

The liquidator can be reached at:

        Amy Soeda
        c/o Maples and Calder
        P.O. Box 309
        Ugland House
        South Church Street
        George Town, Grand Cayman
        Cayman Islands


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

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

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

The liquidators can be reached at:

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


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

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

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

The liquidator can be reached at:

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


GULF INSURANCE: Proofs of Claim Filing Is Until Aug. 13
-------------------------------------------------------
Gulf Insurance Co. Ltd.'s creditors are given until
Aug. 13, 2007, to prove their claims to Glen Trenouth, 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.

Gulf Insurance's shareholders agreed on June 19, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

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


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

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

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

The liquidator can be reached at:

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


OASIS OFFSHORE: Sets Final Shareholders Meeting for Aug. 13
-----------------------------------------------------------
Oasis Offshore Multistrategy Ltd. will hold its final
shareholders meeting on Aug. 13, 2007, at 9:00 a.m., at:

        36A 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,
      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:

        Andrew Hersant
        Chris Humphries
        Attention: Stuarts Walker Hersant
        P.O. Box 2510
        Grand Cayman KY1-1104
        Cayman Islands
        Tel: (345) 949 3344
        Fax: (345) 949 2888


OFFSHORE CRUDE: Proofs of Claim Must be Filed by Aug. 9
-------------------------------------------------------
Offshore Crude Purchasing Ltd.'s creditors are given until
Aug. 9, 2007, to prove their claims to George C. Barry, the
company's liquidator, or be excluded from receiving any
distribution or payment.

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

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

The liquidator can be reached at:

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


OWWS LTD: Proofs of Claim Filing Deadline Is Aug. 9
---------------------------------------------------
OWWS Ltd.'s creditors are given until Aug. 9, 2007, to prove
their claims to Law Yui Lun and Wong Man Chung, Francis, the
company's liquidators, or be excluded from receiving any
distribution or payment.

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

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

The liquidators can be reached at:

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


VEGA LTD: Will Hold Final Shareholders Meeting on Aug. 10
---------------------------------------------------------
Vega Ltd. will hold its final shareholder meeting on
Aug. 10, 2007, at the office of the company.

These agendas will be taken during the meeting:

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

   2) 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


WORLD SAILING: Holding Final Shareholders Meeting Today
-------------------------------------------------------
World Sailing League Holdings Ltd. will hold its final
shareholders meeting on Aug. 7, 2007, at the office of the
company.

These agendas will be taken during the meeting:

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

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

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

The liquidator can be reached at:

         Malav Shroff
         Attention: Sydney J. Coleman
         P.O. Box 1111
         Grand Cayman KY1-1102
         Cayman Islands
         Telephone: 949 5122
         Fax: 949 7920


ZAIS STRUCTURED: Final Shareholders Meeting Is on Aug. 10
---------------------------------------------------------
Zais Structured Credit Master Fund Ltd. will hold its final
shareholders meeting on Aug. 10, 2007, at:

           Elizabethan Square
           George Town, Grand Cayman KY1-1104
           Cayman Islands

These agendas will be taken during the meeting:

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

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

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

The liquidator can be reached at:

          Tim Fitzgerald
          P.O. Box 1984
          George Town, Grand Cayman KY1-1104
          Cayman Islands
          Tel: 345-949-8244
          Fax: 345-949-5223


ZAIS STRUCTURED: Proofs of Claim Filing Is Until Aug. 10
--------------------------------------------------------
Zais Structured Credit Offshore Feeder Fund Ltd.'s creditors are
given until Aug. 10, 2007, to prove their claims to Tim
Fitzgerald, 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.

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

The liquidator can be reached at:

        Tim Fitzgerald
        Deutsche Bank (Cayman) Limited
        P.O. Box 1984
        George Town, Grand Cayman KY1-1104
        Cayman Islands




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


EASTMAN KODAK: Earns US$592 Million in Quarter Ended June 30
------------------------------------------------------------
Eastman Kodak Company reported on Thursday its financial results
for the second quarter ended June 30, 2007.

Eastman Kodak reported net income of US$592 million for the
quarter ended June 30, 2007, compared with a net loss of US$282
million for the same period last year.

Results for the quarters ended June 30, 2007, and 2006, included
total company earnings from the discontinued operations of the
company's Health Group segment to Onex Healthcare Holdings Inc.
on April 30, 2007, of US$727 million (including a pre-tax gain
on sale of US$980 million) and US$73 million, respectively.

The company reported a US$121 million year-over-year improvement
in pre-tax results from continuing operations, reflecting gross
profit margin improvements across all of its major business
units.  The company achieved a US$97 million improvement in
digital earnings and a US$31 million improvement in traditional
earnings, as expenses declined.  In addition, the company
reported a US$135 million after-tax loss from continuing
operations, an improvement of US$220 million, as compared to the
prior year.

Kodak also reaffirmed its plan to achieve its full-year
financial goals for net cash generation, digital revenue growth
and digital earnings.

"Our second-quarter results reinforce our confidence in our
full-year performance," said Antonio M. Perez, chairman and
chief executive officer, Eastman Kodak Company.  "Revenues
during the second quarter were in line with our expectations.
Earnings improved across all of our major business units,
reflecting our strong focus on cost reduction and operational
efficiencies.  We continue to expect a strong second half, with
double-digit sales growth in both of our major digital
businesses, driven by a stronger-than-ever portfolio of digital
products, including our revolutionary consumer inkjet printing
system, new image sensors, workflow software, and an expanded
line of NEXPRESS digital color printing presses.  I'm pleased
with our first-half results, and I remain confident in our
ability to achieve our 2007 key strategic objectives."

On the basis of generally accepted accounting principles in the
U.S. (GAAP), the company reported a second-quarter loss from
continuing operations of US$173 million pre-tax, US$135 million
after tax, compared with a loss of US$294 million pre-tax,
US$355 million after tax in the year-ago period.  Items of
expense impacting comparability in the second quarter of 2007
totaled US$266 million after tax.  The most significant item was
restructuring costs of US$316 million before tax and US$248
million after tax.  In the second quarter of 2006, items that
impacted comparability totaled US$206 million after tax
primarily reflecting restructuring costs.

For the second quarter of 2007:

  -- Sales totaled US$2.510 billion, a decrease of 7% from
     US$2.688 billion in the second quarter of 2006.  Digital
     revenue totaled US$1.460 billion, a 3% increase from
     US$1.417 billion.  Traditional revenue totaled US$1.044
     billion, a 17% decline from US$1.262 billion in the year-
     ago quarter.

  -- The company's second-quarter loss from continuing
     operations, before interest, other income (charges), net,
     and income taxes was US$163 million, compared with a loss
     of US$257 million in the year-ago quarter.

Other financial details:

  -- Gross Profit margin was 26.2% for the quarter, up from
     21.4% in the prior year, primarily attributable to lower
     costs, driven by manufacturing footprint reductions and the
     favorable impact of foreign exchange, offset by adverse
     silver and aluminum costs.

  -- Selling, General and Administrative expenses decreased
     US$87 million from the year-ago quarter, reflecting the
     company's cost reduction activities.  SG&A as a percentage
     of revenue was 17%, down from 19% in the year-ago quarter.

  -- Net Cash Generation for the second quarter was negative
     US$251 million, compared with negative US$74 million in the
     year-ago quarter.  Net Cash Generation for the first half
     of 2007 was negative US$704 million, compared with negative
     US$691 million in the year-ago period.  This corresponds to
     net cash used in operating activities from continuing
     operations of US$298 million for the second quarter,
     compared with US$17 million in the year-ago quarter, driven
     primarily by changes in working capital.  For the first
     half of 2007, net cash used in operating activities from
     continuing operations was US$695 million, compared with
     US$554 million in the year-ago period.

  -- On April 30, 2007, the company completed the sale of its
     Health Group to an affiliate of Onex Corporation for
     US$2.350 billion.  As previously announced, the company
     used a portion of the cash proceeds from that transaction
     to fully repay US$1.145 billion of outstanding secured term
     debt.  As of June 30, 2007, the company's debt level was
     US$1.624 billion, a US$1.154 billion reduction from the
     2006 year-end debt level of US$2.778 billion.

  -- Kodak held US$1.925 billion in cash and cash equivalents as
     of June 30, 2007.

                   2007 Outlook Reaffirmed

Kodak remains focused on three financial metrics as it continues
to transform its business: net cash generation, digital earnings
from operations and digital revenue growth.

The company's goal for net cash generation this year is in
excess of US$100 million after restructuring disbursements of
approximately US$600 million.  This outlook corresponds to
expected net cash provided by continuing operations from
operating activities, on a GAAP basis, in the range of US$200
million to US$450 million.

Additionally, the company's goal for 2007 full-year digital
earnings from operations is US$150 million to US$250 million,
which corresponds to a GAAP loss from continuing operations
before interest, other income (charges), net, and income taxes
for the full year of US$550 million to US$650 million.

Finally, the company continues to forecast 2007 digital revenue
growth of 3% to 5%, with total 2007 revenue expected to be down
between 4% and 7%.

At June 30, 2007, the company's consolidated balance sheet
showed US$13.074 billion in total assets, US$10.582 billion in
total liabilities, and US$2.492 billion in total stockholders'
equity.

Headquartered in Rochester, New York, Eastman Kodak Co. (NYSE:
EK)-- http://www.kodak.com/-- develops, manufactures, and
markets digital and traditional imaging products, services, and
solutions to consumers, businesses, the graphic communications
market, the entertainment industry, professionals, healthcare
providers, and other customers.

The company has operations in Argentina, Chile, Denmark, Greece,
Jordan, Yemen, Australia, China among others.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
May 18, 2007, Fitch Ratings has upgraded Eastman Kodak Company's
senior unsecured debt to 'B/RR4' from 'B-/RR5' due to improved
recovery prospects following the company's redemption on
May 3, 2007, of a US$1.15 billion secured term loan funded with
a portion of the proceeds from the sale of its Health Group to
Onex Healthcare Holdings, Inc., for US$2.35 billion on
April 30, 2007.

In addition, Fitch has affirmed these Kodak ratings:

     -- Issuer Default Rating 'B';
     -- Secured credit facility 'BB/RR1'.


GERDAU: Chilean Unit Working on Boosting Capacity
-------------------------------------------------
Gerdau's Chilean subsidiary Gerdau Aza Marketing Manager Jorge
Manriquez told Business News Americas that the firm is working
on equipment to expand capacity to 520,000 tons per year.

Gerdau Aza will continue operating normally, BNamericas notes,
citing Mr. Manriquez.

Some steel plants have to cease activities completely for months
at a time to conduct expansion projects, Mr. Manriquez told
BNamericas.  However, Gerdau Aza's electric arc furnace has the
flexibility to avoid a halt that would cause production decline.

According to BNamericas, Mr. Manriquez said that the furnace can
be shut down and restarted quickly, allowing for works to be
conducted during the Chilean winter season.

BNamericas notes that Chile's restricted energy availability
made officials compel industrial plants with high electricity
consumption to stop working for several hours per day during
winter months.

Mr. Manriquez told BNamericas that Gerdau Aza is taking
advantage of the stoppages to conduct construction works. The
US$160-million plan to boost installed capacity to 520,000 tons
a year from 420,000 tons per year would be completed by 2010.
Gerdau Aza accomplished 20%.

Gerdau Aza has preliminary plans to increase capacity to 750,000
tons per year, "including expansions in rolling capacity,"
BNamericas says.

Mr. Manriquez told BNamericas that the project could cost US$150
million, BNamericas states.

                      About Gerdau Aza

Gerdau Aza, Gerdau S.A.'s Chilean subsidiary, manufactures bars
and rolled steel beams for the construction and metal-mechanic
industries at its two plants located just north of Santiago in
Renca and Colina.

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

                        *     *     *

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

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
July 16, 2007, Moody's Investors Service placed the ratings of
Gerdau Ameristeel Corporation (Ba1 corporate family rating --
Ameristeel) and Gerdau S.A.'s Ba1 corporate family rating under
review for possible downgrade.




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


ALCATEL-LUCENT: To Upgrade nTelos' Wireless Network
---------------------------------------------------
Alcatel-Lucent has signed a three-year contract to upgrade the
US-based code division multiple access operator nTelos' wireless
network, Cellular-News reports.

According to Cellular-News, the US$88.2-million agreement covers
equipment, services and software.  Alcatel-Lucent will provide
installation, engineering, training and technical support.  A
CDMA2000 1xEV-DO Revision A (Rev. A) technology will be
installed in nTelos markets in:

          -- Virginia,
          -- West Virginia,
          -- Kentucky,
          -- Ohio, and
          -- North Carolina.

The report says that Alcatel-Lucent will be the exclusive
provider of new code division multiple access technology in
nTelos' operations.

nTelos' Wireless Engineering and Operations Vice President Bobby
McAvoy commented to Cellular-News, "We have decided to upgrade
our networks using Alcatel-Lucent CDMA (code division multiple
access) technology based on their proven ability to deliver a 3G
solution that will transform our network to a next-generation
system, bringing the benefits of new, advanced services to our
customers and improving our operations."

Cellular News relates that Alcatel-Lucent will provide its
Internet Provider/Multiprotocol Label Switching software that
includes the Alcatel-Lucent 7750 Service Router and 7450
Ethernet Service Switch, to deploy an Internet protocol routing
and Internet Protocol Radio Access Network backhaul software.

Alcatel-Lucent's Internet protocol-based software was created on
a single unified Internet protocol infrastructure.  It will
support multiple types of services to ensure subscriber quality
of experience for multimedia applications, Cellular-News states.

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.




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


PETROECUADOR: Grants Gas Supply Contract To Trafigura Beheer
------------------------------------------------------------
Ecuadorian state-run oil firm Petroecuador said in a statement
that it has awarded Dutch trader Trafigura Beheer a two-year
liquefied petroleum gas supply contract.

As reported in the Troubled Company Reporter-Latin America on
Aug. 2, 2007, Petroecuador said that six companies have
presented offers to supply the company with liquefied petroleum
gas.  The bidders are:

          -- Anglo Energy Refining,
          -- Flopec,
          -- Glencore,
          -- Naftomar Shipping and Trading,
          -- Trafigura Beheer, and
          -- Global Companies.

Business News Americas relates that Trafigura Beheer won the
bidding by offering US$79 per ton.

According to BNamericas, the contract involves the supply of 1.6
million tons -- plus or minus 20% -- at Petroecuador's choice
with monthly deliveries.  It will start in November when
Trafigura Beheer's current contract with Petroecuador expires.
The current contract's supply price is US$116 per ton.

BNamericas notes that Trafigura Beheer will need a 40,000-ton
storage vessel and two 2,500-ton vessels to ship the liquefied
petroleum gas to the Tres Bocas terminal in Guayas.

The contract will cover demand while an onshore liquefied
petroleum gas storage and transport project is built in
Monteverde, a project between Petroecuador and state
hydrocarbons maritime transporter Flopec, BNamericas states.

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




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


BALLY TOTAL: Moody's Removes All Ratings After Bankruptcy Filing
----------------------------------------------------------------
Moody's Investors Service withdrew all the credit ratings of
Bally Total Fitness Holding Corporation after the announcement
that Bally commenced voluntary reorganization proceedings under
chapter 11 of the U.S. Bankruptcy Code.  The proceedings seek to
confirm a "prepackaged" plan of reorganization the company's
bondholders have voted to support.

Moody's withdrew these ratings:

   -- US$235 million 10.5% senior unsecured notes (guaranteed)
      due 2011, Ca (LGD 4, 51%)

   -- US$300 million 9.875% senior subordinated notes due 2007,
      C (LGD 5, 88%)

   -- Corporate family rating, Ca

   -- Probability of default rating, D

Based in Chicago, Illinois, Bally Total Fitness Holding Corp.
(Pink Sheets: BFTH.PK) -- http://www.ballyfitness.com/--
operates fitness centers in the U.S., with over 375 facilities
located in 26 states, Mexico, Canada, Korea, China and the
Caribbean under the Bally Total Fitness(R), Bally Sports
Clubs(R) and Sports Clubs of Canada (R) brands.

Bally Total and its affiliates filed for chapter 11 protection
on July 31, 2007 (Bankr. S.D.N.Y. Case No. 07-12396) after
obtaining requisite number of votes in favor of their pre-
packaged chapter 11 plan.  Joseph Furst, III, Esq. at Latham &
Watkins, L.L.P. represents the Debtors in their restructuring
efforts.  As of June 30, 2007, the Debtors had US$408,546,205 in
total assets and US$1,825,941,54627 in total liabilities.


BALLY TOTAL: Wins Favorable Ruling in Mass. Consumer Lawsuit
------------------------------------------------------------
The First Circuit Court ruled in favor of Bally Total Fitness
Holding Corp. in a suit claiming its health-club contracts
violate Massachusetts consumer protection laws, CourtHouse News
Service reports.

The suit was filed by Gisselle Ruiz, who said the club refused
to refund the balance of her membership fee when she canceled a
36-month contract with Holiday Universal, a subsidiary of Bally
Total.  She claimed the terms of the contract, including a
built-in financing plan, violated the Massachusetts Health Club
Services Contracts Act, which prohibits the required financing
of a health-club contract for more than one month beyond the
contract's expiration.

The court ruled Bally's health-club contracts do not violate
Massachusetts consumer protection law because it never forced
customers to sign up for the financing it offered.

Based in Chicago, Illinois, Bally Total Fitness Holding Corp.
(Pink Sheets: BFTH.PK) -- http://www.ballyfitness.com/--
operates fitness centers in the U.S., with over 375 facilities
located in 26 states, Mexico, Canada, Korea, China and the
Caribbean under the Bally Total Fitness(R), Bally Sports
Clubs(R) and Sports Clubs of Canada (R) brands.

Bally Total and its affiliates filed for chapter 11 protection
on July 31, 2007 (Bankr. S.D.N.Y. Case No. 07-12396) after
obtaining requisite number of votes in favor of their pre-
packaged chapter 11 plan.  Joseph Furst, III, Esq. at Latham &
Watkins, L.L.P. represents the Debtors in their restructuring
efforts.  As of June 30, 2007, the Debtors had US$408,546,205 in
total assets and US$1,825,941,54627 in total liabilities.


DURA AUTOMOTIVE: Files Backstop Rights Purchase Agreement
---------------------------------------------------------
DURA Automotive Systems Inc. has filed a backstop rights
purchase agreement, which provides for certain backstop
commitments.  The agreement is based upon a term sheet
originally filed with the U.S. Bankruptcy Court on
July 12, 2007, as part of a motion requesting the Court approve
the backstop rights purchase agreement and certain associated
fees.

Under the terms of the agreement, Pacificor, LLC, one of DURA's
senior noteholders, has elected to underwrite 100% of the
backstop commitment.

The court is currently scheduled to hear the backstop motion on
Aug. 15, 2007.

Headquartered in Rochester Hills, Michigan, DURA Automotive
Systems, Inc. -- http://www.duraauto.com/-- is an independent
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive and recreation & specialty vehicle industries.  DURA,
which operates in 63 locations, sells its products to every
major North American, Asian and European automotive original
equipment manufacturer and many leading Tier 1 automotive
suppliers.  It currently operates in 63 locations including
joint venture companies and customer service centers in 14
countries.

The company has three locations in Asia -- China, Japan
and Korea.  It has locations in Europe and Latin-America,
particularly in Mexico, Germany and the United Kingdom.

The Debtors filed for chapter 11 petition on Oct. 30, 2006
(Bankr. D. Delaware Case No. 06-11202).  Richard M. Cieri, Esq.,
Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan
Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel
for the Debtors' bankruptcy proceedings.  Mark D. Collins, Esq.,
Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of
Richards Layton & Finger, P.A. Attorneys are the Debtors' co-
counsel.  Baker & McKenzie acts as the Debtors' special counsel.
Togut, Segal & Segal LLP is the Debtors' conflicts counsel.
Miller Buckfire & Co., LLC is the Debtors' investment banker.
Glass & Associates Inc., gives financial advice to the Debtor.
Kurtzman Carson Consultants LLC handles the notice, claims and
balloting for the Debtors and Brunswick Group LLC acts as their
Corporate Communications Consultants for the Debtors.  As of
July 2, 2006, the Debtor had US$1,993,178,000 in total assets
and US$1,730,758,000 in total liabilities.


DURA AUTOMOTIVE: Unit Inks Joint Venture Deal with MINTH Group
--------------------------------------------------------------
DURA Automotive Handels und Beteiligungs GmbH, a wholly owned
subsidiary of DURA Automotive Systems, Inc., has entered into a
joint venture agreement with MINTH Group Limited, to develop,
manufacture and sell automotive door frames, body-in-white door
modules and door pillar cappings for automakers based in China.
The new joint venture company will conduct business under the
name DURA MINTH AUTOMOTIVE SYSTEMS Co., Ltd. The transaction is
subject to final business license approvals.

"Establishing a DURA MINTH joint venture in China allows us to
expand our customer support in the Asian market for body and
trim components," said Larry Denton, DURA Automotive's chairman
and chief executive officer.  "Our customers will benefit from
the combination of MINTH's strong capabilities in the
manufacture of precision door and trim components, coupled with
DURA's world-class design and advanced manufacturing
technology."

The joint venture company will establish its initial
manufacturing operations at MINTH's existing facilities in
Chongqing, China.

"This agreement also provides access to DURA's established OEM
relationships, particularly with European automakers
manufacturing in China," said Mu Wei Zhong, vice president and
executive director of MINTH Group Limited.  "We look forward to
working closely with our joint venture partner to enhance our
growth opportunities."

The joint venture will be majority owned and controlled by DURA,
and the board of directors will be comprised of DURA and MINTH
executives.  The parent companies will contribute assets,
intellectual property and technical resources.

                  About MINTH Group Limited

MINTH Group Limited is a Cayman Island-based investment holding
company.  Through its subsidiaries, the company is engaged in
the manufacturing, processing, development and sale of exterior
automobile body parts and molds of passenger cars.  It designs,
manufactures and sells trim, decorative parts and body
structural parts.  These products are sold to the auto parts
industry in the People's Republic of China.

                      About DURA Automotive

Headquartered in Rochester Hills, Michigan, DURA Automotive
Systems, Inc. -- http://www.duraauto.com/-- is an independent
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive and recreation & specialty vehicle industries.  DURA,
which operates in 63 locations, sells its products to every
major North American, Asian and European automotive original
equipment manufacturer and many leading Tier 1 automotive
suppliers.  It currently operates in 63 locations including
joint venture companies and customer service centers in 14
countries.

The company has three locations in Asia -- China, Japan
and Korea.  It has locations in Europe and Latin-America,
particularly in Mexico, Germany and the United Kingdom.

The Debtors filed for chapter 11 petition on Oct. 30, 2006
(Bankr. D. Delaware Case No. 06-11202).  Richard M. Cieri, Esq.,
Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan
Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel
for the Debtors' bankruptcy proceedings.  Mark D. Collins, Esq.,
Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of
Richards Layton & Finger, P.A. Attorneys are the Debtors' co-
counsel.  Baker & McKenzie acts as the Debtors' special counsel.
Togut, Segal & Segal LLP is the Debtors' conflicts counsel.
Miller Buckfire & Co., LLC is the Debtors' investment banker.
Glass & Associates Inc., gives financial advice to the Debtor.
Kurtzman Carson Consultants LLC handles the notice, claims and
balloting for the Debtors and Brunswick Group LLC acts as their
Corporate Communications Consultants for the Debtors.  As of
July 2, 2006, the Debtor had US$1,993,178,000 in total assets
and US$1,730,758,000 in total liabilities.


GRUPO MEXICO: Talks with Union Fail
-----------------------------------
Grupo Mexico SA, de C.V.'s negotiations with the Mexican
national mining-metalworkers union STMMRM have failed, Business
News Americas reports, citing union spokesperson Carlos Pavon.

Mr. Pavon told BNamericas that the demonstrations continued for
the fifth consecutive day at three of Grupo Mexico's operations.

BNamericas relates that STMMRM launched protests at the Cananea
copper mine, San Martin zinc mine and Taxco silver-lead-zinc
mine on July 30, 2007, to demand that Grupo Mexico negotiate
collective contracts and apply pressure to boost safety and
working conditions.

According to BNamericas, representatives of Grupo Mexico and the
union entered into negotiations to arrive at an agreement.

Grupo Mexico hasn't revised collective contracts since
February 2006, BNamericas says, citing Mr. Pavon.

Grupo Mexico told BNamericas that it already negotiated the
collective contracts and that the union refused to recognize the
deal as it was made with Elias Morales, the leader supported by
the Mexican labor ministry.  The union demands contracts be
renegotiated.

The union's demands are "unfounded."  The demonstrations aren't
about collective labor contracts, but "a ploy to promote
personal interests," Grupo Mexico said in a statement.

BNamericas relates that Grupo Mexico "asked the labor ministry's
federal arbitration and reconciliation council to declare the
strikes illegal and to restore the necessary conditions to
resume production."

"We're practically waiting for them to declare the strikes
illegal, but we have the option to appeal.  If that fails we
have the final administrative appeal.  Until that is done we
won't stop strikes, and this is a process that takes about two
months," Mr. Pavon commented to BNamericas.

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

                        *     *     *

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


JABIL CIRCUIT: Paying US$0.07 Per Share Dividend on Sept. 4
-----------------------------------------------------------
Jabil Circuit Inc.'s Board of Directors has approved payment of
a quarterly dividend to shareholders of record as of
Aug. 15, 2007.  The dividend of US$0.07 per share is payable on
Sept. 4, 2007.

The company intends to continue to pay regular quarterly
dividends; however the declaration and payment of future
dividends are discretionary and will be subject to determination
by the Board each quarter following its review of the Company's
financial performance.

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

                        *     *     *

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


NORTEL NETWORKS: Posts US$37 Mil. Net Loss in Qtr. Ended June 30
----------------------------------------------------------------
Nortel Networks Corp. reported on Thursday its results for the
second quarter ended June 30, 2007.

The company reported a net loss of US$37 million in the second
quarter of 2007, compared with net income of US$342 million for
the same period last a year ago.

The net loss of US$37 million in the quarter ended
June 30, 2007, included special charges of US$36 million for
restructuring, a US$35 million provision related to ongoing
discussions with the SEC, a gain of US$69 million due to
favourable effects of changes in foreign exchange rates and a
gain of US$10 million on the sale of assets.

The net earnings in the second quarter of 2006 of US$342 million
included a shareholder litigation recovery of US$510 million
reflecting a mark-to-market adjustment of the share portion of
the global class action settlement, special charges of US$49
million for restructuring and a loss of US$12 million on the
sale of assets.

"Good progress is being made in our effort to reshape Nortel to
deliver sustained value to shareholders.  On balance, the key
indicators of our financial health moved in a positive direction
in the quarter," said Nortel president and chief executive
officer Mike Zafirovski.  "Gross margin of 41.1% was the highest
in eight quarters and the operating margin expanded
significantly on a year-over-year basis for the fourth
consecutive quarter.  Revenues were down 8% this quarter,
principally as a result of the UMTS divestiture and the timing
of contract completion.  Revenues were up 3% sequentially and we
are confident that the traction we are seeing with customers
will translate into much higher sequential growth for the
remainder of the year."

Revenues were US$2.56 billion for the second quarter of 2007
compared to US$2.78 billion for the second quarter of 2006.

Deferred revenues decreased sequentially by US$29 million from
the first quarter of 2007.  Order input for the quarter was
US$2.68 billion, down from US$2.81 billion in the second quarter
of 2006 (note that second quarter of 2006 UMTS Access orders
associated with the assets sold were approximately US$184
million), and up from US$2.59 billion in the first quarter of
2007.

Carrier Networks (CN) revenues in the second quarter of 2007
were US$1.06 billion, a decrease of 16% compared with the year-
ago quarter and an increase of 5% sequentially.  In the second
quarter, CN revenues were impacted by the UMTS Access
divestiture and decreases in legacy products, partially offset
by growth in VoIP and GSM compared with the year-ago quarter.
Excluding the impact of the UMTS Access divestiture, CN revenues
decreased by 5% in the second quarter of 2007 compared with the
year-ago quarter.

Enterprise Solutions (ES) revenues in the second quarter of 2007
were US$590 million, an increase of 23% compared with the year-
ago quarter and a decrease of 1% sequentially.  ES recorded the
fourth consecutive quarter of year over year growth, driven by
strong increases in the voice, data and applications businesses,
which was positively impacted by the timing of contract
completions.

Global Services (GS) revenues in the second quarter of 2007 were
US$494 million, a decrease of 9% compared with the year-ago
quarter, and an increase of 10% sequentially.  The year over
year decrease was largely due to a decrease in network
implementation services primarily due to the UMTS Access
divestiture and lower GSM  services revenues, partially offset
by growth in network  management and support services.
Excluding the impact of the UMTS Access divestiture, GS revenues
decreased by 3% in the second quarter of 2007 compared with the
year-ago quarter.

Metro Ethernet Networks (MEN) revenues in the second quarter of
2007 were US$363 million, a decrease of 16% compared with the
year-ago quarter and a decrease of 3% sequentially.  The year
over year decrease in revenues was primarily due to decreases in
long-haul optical revenues not repeated in the second quarter of
2007 (due to the completion of large optical contracts in the
second quarter of 2006) and in legacy data, partially offset by
increases in metro optical and carrier ethernet revenues.

Cash balance at the end of the second quarter of 2007 was
US$4.47 billion, down slightly from US$4.56 billion at the end
of the first quarter of 2007.  This decrease was primarily
driven by a cash outflow from operations of US$120 million.  The
cash balance includes net proceeds from the US$1.15 billion
convertible notes offering in March 2007.  In September 2007,
Nortel will redeem, at par, US$1.125 billion principal amount of
4.25% convertible notes plus accrued and unpaid interest.

                  Regulatory Investigations

As previously announced, in May 2007 the Ontario Securities
Commission (OSC) approved a Settlement Agreement reached by the
Staff of the OSC and Nortel, which settlement fully resolved all
issues between Nortel and the OSC.  The decision recognized the
extensive efforts made by Nortel's senior management and Board
of Directors to be forthcoming and transparent in reporting
significant accounting and internal control issues, and then
solving them.

Nortel has been under investigation by the SEC since April 2004
in connection with previous restatements of its financial
statements.  As a result of discussions with the Enforcement
Staff of the SEC for purposes of resolving the investigation,
Nortel concluded that a reserve should be provided.
Accordingly, an accrual was recorded in the second quarter of
2007 in the amount of US$35 million, which Nortel believes
represents its current best estimate for the liability
associated with this matter.  However, this matter is ongoing
and the ultimate outcome is still uncertain.

                           Outlook

Commenting on the company's financial expectations, David
Drinkwater, interim chief financial officer, Nortel said, "For
the full year 2007, we continue to expect revenues to be flat to
down slightly compared to 2006, reflecting a decrease in
revenues as a result of the UMTS Access disposition (note that
2006 UMTS Access revenues associated with the assets sold were
approximately US$660 million).  We continue to expect full year
2007 gross margin to be in the low 40's, as a percentage of
revenues, and we now expect operating margin to be around 5
percent, of revenues).  For the third quarter of 2007, we expect
revenues to be down in the mid single digits compared to the
year ago quarter (note that third quarter 2006 UMTS Access
revenues associated with the assets sold were approximately
US$156 million).  We expect third quarter 2007 gross margin to
be around 40, as a percentage of revenue, and operating expenses
(SG&A and R&D) to be down slightly, compared to the year ago
quarter."

At June 30, 2007, the company's consolidated balance sheet
showed US$18.95 billion in total assets, US$15.35 billion in
total liabilities, US$788 million in minority interests in
subsidiary companies, and US$2.81 billion in total stockholders'
equity.

                    About Nortel Networks

Headquartered in Ontario, Canada, Nortel Networks Corporation
(NYSE/TSX: NT) -- http://www.nortel.com/-- is a recognized
leader in delivering communications capabilities that enhance
the human experience, ignite and power global commerce, and
secure and protect the world's most critical information.
Serving both service provider and enterprise customers, Nortel
delivers innovative technology solutions encompassing end-to-end
broadband, Voice over IP, multimedia services and applications,
and wireless broadband designed to help people solve the world's
greatest challenges.  Nortel does business in more than 150
countries including Australia, China, Philippines, Thailand and
Indonesia in the Asia Pacific region, Mexico in Latin America
and Denmark in Europe.

                        *     *     *

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

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

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

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


QUAKER FABRIC: Inks Pact w/ GB Merchant for US$2MM Overadvance
--------------------------------------------------------------
Quaker Fabric Corporation disclosed in a regulatory filing with
the U.S. Securities and Exchange Commission that on
July 18, 2007, with the consent of Bank of America, N.A.,
entered into a letter agreement with GB Merchant Partners, LLC,
providing for a US$2.0 million Overadvance to the company under
one or both of the Term Loans under the 2006 Term Loan
Agreement.

The Letter Agreement further provides for the payment of
interest at the Default Rate under the 2006 Term Loan Agreement
and a Forbearance and Funding Fee equal to 20% of any amounts
funded under the GB Overadvance, with the proceeds of each such
GB Overadvance to be used solely to fund wind-down expenses and
other costs and expenses set forth in a wind-down budget
prepared under the direction of and approved by RAS and further
approved by the Bank and GB.

                       Credit Agreement

On Nov. 9, 2006, the company's wholly owned subsidiary, Quaker
Fabric Corporation of Fall River, entered into a US$25.0 million
amended and restated senior secured revolving credit agreement
with Bank of America and two other lenders.

Quaker Fall River's obligations to the revolving credit lenders
are secured by all of the company's assets, with a junior
interest in Quaker Fall River's real estate and machinery and
equipment.

Simultaneously, Quaker Fall River entered into two senior
secured term loans in the aggregate amount of US$24.6 million,
with GB Merchant Partners, LLC as Agent for the term loan
lenders.

The two term loans consist of a US$12.5 million real estate loan
and a US$12.1 million equipment loan.  The Term Loans are
secured by all of the company's assets, with a first priority
security interest in the company's machinery and equipment and
real estate.

                      Likely Liquidation

As previously reported in the Troubled Company Reporter, the
company disclosed that it is likely to commence an orderly
liquidation of its business and a sale of its assets after it
failed to meet the requirements for committed borrowings under
its existing lending facilities.  The company however said it
continues to talk with each of its existing lenders about the
financing needed to conduct an orderly liquidation and sale.

On July 9, 2007, the company retained RAS Management Advisors,
Inc. to (i) manage, in consultation with management, the
liquidation of the assets of the company outside the normal
course of business in a manner intended to yield the greatest
return to the company's creditors and (ii) to advise the company
with respect to budgeting matters related to the liquidation
process.

                       Notice of Default

On July 3, 2007, both Bank o America and GB provided the company
with "Notice of Defaults and Exercise of Remedies; Reservation
of Rights" letters alleging that events of default had arisen
under the 2006 Loan Agreements because various representations
and warranties made by the company were not true at the time
certain Loans were made.  The Lenders further said that its
disclosure o likely liquidation constituted an admission of the
company's inability to pay its debts when due.

The effect of these Default Notices includes an increase in
the interest rates on the 2006 Loan Agreements to the Default
Rate, as defined in the 2006 Loan Agreements, which is 2% higher
than the otherwise applicable interest rates in the Agreements.
In addition, the Default Notice provided to the company by the
Bank includes a provision notifying the company that the
Lenders "have no further obligation or commitment to make
additional Loans to the Borrower (Quaker Fall River).  The
decision to make any further Loans will be made in the sole
discretion of the Lenders.  The Administrative Agent expressly
reserves the full extent of its rights and remedies under the
Credit Agreement and applicable law."

The Default Notice from GB includes an identical Reservation of
Rights Clause.  Each of the Bank and GB have the right to demand
immediate repayment of all amounts outstanding under the Loans
upon the occurrence of the events of default described in the
Default Notices.  To date, neither the Bank nor GB has made any
such demand.

As of July 20, 2007, there were US$34.2 million of loans
outstanding under the 2006 Loan Agreements, including US$19.5
million of loans outstanding under the 2006 Term Loan and
US$14.7 million of loans outstanding under the 2006 Revolving
Credit Agreement, including approximately US$4.0 million of
letters of credit outstanding.

Based in Fall River, Mass., Quaker Fabric Corp. (NASDAQ: QFAB)
-- http://www.quakerfabric.com/-- engages in the design,
manufacture, and marketing of woven upholstery fabrics primarily
for residential furniture manufacturers and jobbers.  It also
develops and manufactures specialty yarns, including chenille,
taslan, and spun products for use in the production of its
fabrics, as well as for sale to distributors of craft yarns, and
manufacturers of home furnishings and other products.

Quaker Fabric Corporation sells its products through sales
representatives and independent commissioned sales agents in the
United States, Canada, Mexico, and internationally.


SONIC CORP: Board Okays Additional US$75 Mil. Stock Repurchase
--------------------------------------------------------------
Sonic Corp.'s board of directors has authorized an additional
US$75 million under the company's stock repurchase
authorization.  The board also extended the term for the
repurchase of the newly authorized amount to Aug. 31, 2008.

Share repurchases under the prior authorization of US$100
million were completed in July.

Share repurchases under the program will be made from
time-to-time in the open market depending on market conditions.
In October 2006, the company completed the buyback of US$366
million of its common stock through a tender offer.  Subsequent
to the tender offer, Sonic has repurchased approximately US$180
million of stock in the open market under the prior repurchase
authorization.

Collectively, the total stock repurchased thus far in fiscal
year 2007 amounts to 24 million shares or approximately US$546
million, representing over 28% of the company's outstanding
stock at Sept. 1, 2006, the beginning of the current fiscal
year.

Headquartered in Oklahoma City, Oklahoma, Sonic Corp. (Nasdaq:
SONC) -- http://www.sonicdrivein.com/-- originally started as a
hamburger and root beer stand in 1953, in Shawnee, Oklahoma,
called Top Hat Drive-In, and then changed its name to Sonic in
1959.  The first drive-in to adopt the Sonic name is still
serving customers in Stillwater, Oklahoma.  Sonic has more than
3,200 drive-ins coast to coast and in Mexico, where more than a
million customers eat every day.

At Feb. 28, 2007, the company's balance sheet showed total
assets of US$719 million and total liabilities of US$745
million, resulting in a US$26 million stockholders' deficit.


WERNER LADDER: Court Extends Removal Period to November 5
---------------------------------------------------------
The Hon. Kevin J. Carey of the U.S. Bankruptcy Court for the
District of Delaware extended until Nov. 5, 2007, the deadline
for Werner Holding Co. (DE) Inc., aka Werner Ladder Co. and its
debtor-affiliates to file notices of removal of any civil
actions pending as of its bankruptcy filing.

The Court's order is without prejudice to any position that the
Debtors may take regarding whether Section 362 of the Bankruptcy
Code applies to stay any given civil action pending against
them or their right to seek further extensions of the Removal
Period.

Based in Greenville, Pennsylvania, Werner Holding Co. (DE) Inc.
aka Werner Ladder Co. -- http://www.wernerladder.com/--
manufactures and distributes ladders, climbing equipment and
ladder accessories.  The company and three of its affiliates
filed for chapter 11 protection on June 12, 2006 (Bankr. D. Del.
Case No. 06-10578).

The Debtors are represented by the firm of Willkie Farr &
Gallagher LLP as lead counsel and the firm of Young, Conaway,
Stargatt & Taylor LLP as co-counsel.  Rothschild Inc. is the
Debtors' financial advisor.  The Official Committee of Unsecured
Creditors is represented by the firm of Winston & Strawn LLP as
lead counsel and the firm of Greenberg Traurig LLP as co-
counsel.  Jefferies & Company serves as the Creditor Committee's
financial advisor.  At March 31, 2006, the Debtors reported
total assets of US$201,042,000 and total debts of
US$473,447,000.  On June 19, 2007, the Creditors Committee
submitted their own chapter 11 plan and disclosure statement
explaining that plan.  The hearing to consider the adequacy of
the Creditors' Committee's Disclosure Statement has been
adjourned to Aug. 23, 2007.  (Werner Ladder Bankruptcy News,
Issue No. 35; Bankruptcy Creditors' Service Inc.
http://bankrupt.com/newsstand/or (215/945-7000).


WERNER LADDER: Levine Leichtman Wants to Prosecute Claims
---------------------------------------------------------
Levine Leichtman Capital Partners III, L.P., one of the
investors for New Werner Holdings Co. (DE), LLC, tells the U.S.
Bankruptcy Court for the District of Delaware that it generally
supports the Official Committee of Unsecured Creditors' request
to convert the Debtors' Chapter 11 cases to a case under Chapter
7 of the Bankruptcy Code.

However, Levine Leichtman wants to ensure that it is able to
fully investigate and prosecute certain claims as required under
its stipulation with Milk Street Investors LLC, the Creditors
Committee, the Debtors, New Werner and the Ad Hoc Second Lien
Committee.

Pursuant to the Stipulation, Levine Leichtman was appointed as
the litigation designee to prosecute estate causes of action on
behalf of, and for the benefit of, the Debtors' estates, and to
fund ligation.  Levine Leichtman was also allowed to gather from
the Debtors all documents relating to the causes of action.

On Levine Leichtman's behalf, Gaston P. Loomis II, Esq., at Reed
Smith LLP, in Wilmington, Delaware, relates that the Creditors
Committee has provided its work product to Levine Leichtman
pursuant to a common interest and joint privilege agreement, as
well as about 20 boxes of documents produced by the Debtors and
other third parties.

In light of the authority granted to it under the Stipulation,
Levine Leichtman is serving subpoenas on the Debtors and their
representatives to obtain all documents relating to the
litigation causes of actions or claims to which the investor is
entitled.

Under the Stipulation, which provides, among other things for
the creation of a Litigation Trust, Levine Leichtman or its
designee is appointed as the Litigation Designee  to prosecute
and fund causes of action on behalf of, and for the benefit of
the Debtors' estates.

As Litigation Designee, Levine Leichtman will gather from the
Debtors and their representatives all documents relating to
causes of action.

Accordingly, Levine Leichtman insists that it must have access
to all the documents to which it is entitled, with those
documents to be delivered to it in a timely manner.

Levine Leichtman believes that a significant portion of the
requested documents have already been assembled in connection
with document requests propounded by the Creditors Committee
under Rule 2004 of the Federal Rules of Bankruptcy Procedure.

Consequently, there will be no undue burden on any party in
turning over to Levine Leichtman the documents required under
the Stipulation, Mr. Loomis says.

               Committee's Motion to Convert

As reported in the Troubled Company Reporter on July 23, 2007,
the Creditors Committee asked the Court to convert the Debtors'
Chapter 11 cases to cases under Chapter 7 of the Bankruptcy
Code.

The Creditors Committee believes that there are insufficient
assets in the Debtors' estate to confirm a Chapter 11 plan
within a reasonable time, in that:

   (i) the US$750,000 wind-down budget, which New Werner Holding
       Co. (DE), LLC, agreed to pay as an assumed liability
       under the Asset Purchase Agreement to fund certain
       invoiced expenses, is insufficient to pay the wind-down
       expenses of the Debtors' estates; and

  (ii) there is no funding to pay other administrative expense
       and priority claims during plan confirmation.

The Creditors Committee further believes that converting the
Debtors' cases to Chapter 7, rather than dismissing the cases,
is in the best interests of the general unsecured creditors
because a Chapter 7 trustee may promptly begin liquidating the
remaining assets pursuant to the Court-approved stipulation
among the Committee; Levine Leichtman Capital Partners III,
L.P., together with Milk Street Investors LLC; and other major
parties-in-interest.

                  About Werner Holding Co.

Based in Greenville, Pennsylvania, Werner Holding Co. (DE) Inc.
aka Werner Ladder Co. -- http://www.wernerladder.com/--
manufactures and distributes ladders, climbing equipment and
ladder accessories.  The company and three of its affiliates
filed for chapter 11 protection on June 12, 2006 (Bankr. D. Del.
Case No. 06-10578).

The Debtors are represented by the firm of Willkie Farr &
Gallagher LLP as lead counsel and the firm of Young, Conaway,
Stargatt & Taylor LLP as co-counsel.  Rothschild Inc. is the
Debtors' financial advisor.  The Official Committee of Unsecured
Creditors is represented by the firm of Winston & Strawn LLP as
lead counsel and the firm of Greenberg Traurig LLP as co-
counsel.  Jefferies & Company serves as the Creditor Committee's
financial advisor.  At March 31, 2006, the Debtors reported
total assets of US$201,042,000 and total debts of
US$473,447,000.  On June 19, 2007, the Creditors Committee
submitted their own chapter 11 plan and disclosure statement
explaining that plan.  The hearing to consider the adequacy of
the Creditors' Committee's Disclosure Statement has been
adjourned to August 23, 2007.  (Werner Ladder Bankruptcy News,
Issue No. 35; Bankruptcy Creditors' Service Inc.
http://bankrupt.com/newsstand/or (215/945-7000).




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


ADVANCED MEDICAL: Posts US$166 Mil. Net Loss in Second Qtr. 2007
----------------------------------------------------------------
Advanced Medical Optics Inc. reported financial results for the
second quarter of 2007.

AMO reported a second-quarter net loss under Generally Accepted
Accounting Principles of US$166.8 million, which included the
impact of the recall.

These results also included:

   * US$85.4 million pre-tax, non-cash in-process research and
     development charge and a US$7.7 million pre-tax, non-cash
     inventory step-up to fair value charge related to the
     IntraLase acquisition.

   * approximately US$14.5 million in pre-tax transaction-
     related charges.

   * US$1.2 million in a pre-tax, non-cash deferred financing
     cost write-off related to the IntraLase acquisition
     financing and a gain on derivative instruments.

   * US$9.8 million unfavorable tax impact associated primarily
     with acquisition-related items.

In the same period last year, AMO reported a GAAP net loss of
US$2.7 million.

The company's second-quarter 2007 net sales rose 1.7% to
US$261.4 million.  The sales increases related to the April 2007
acquisition of IntraLase Corp. and organic growth were offset by
lost sales and product returns related to the May 2007
MoisturePlus recall.  Foreign currency impacts increased net
sales by 1.7%.

"In the second quarter, we moved aggressively to integrate
IntraLase," Jim Mazzo, AMO chairman, president and chief
executive officer, said.  "Our Advanced CustomVue(R) technology
and IntraLase(R) FS laser drove laser vision correction sales to
new highs, demonstrating the strategic value of this
combination.  In addition, our portfolio of refractive implants
delivered double-digit growth on a sequential and year-over-year
basis and helped fuel an 8 percent rise in intraocular lens
sales.  Furthermore, our eye care business moved quickly and
responsibly to execute a global recall, and developed a
comprehensive plan to re-enter the multipurpose contact lens
care market ahead of schedule."

AMO estimated that the recall reduced eye care sales by
approximately US$54 million, including approximately US$31
million in returns and an estimated US$23 million in lost sales.
As a result of the sales returns, the company reported negative
multipurpose sales of US$7.8 million.  The company incurred
recall-related costs of approximately US$27 million, which were
recognized in cost of sales and SG&A expense.

Gross profit decreased 22.3% to US$127.9 million, including a
US$7.7 million non-cash inventory step-up to fair value charge
related to the IntraLase acquisition.  Gross profit was also
impacted by approximately US$50.9 million in returns and costs
and an estimated US$15.9 million related to lost sales
associated with the recall.

R&D expense rose 24.8% to US$20.7 million, or approximately 7.9%
of sales, compared to 6.4 percent in the second quarter of 2006.
The increase was due primarily to the addition of IntraLase and
WaveFront Sciences Inc.

                 Six-Month Financial Results

Net sales for the first six months of 2007 rose 3.6% to US$513.1
million, including a 2.1% increase related to foreign currency
fluctuations.  The rise reflects the addition of the IntraLase
and WaveFront Sciences acquisitions and organic growth, which
were largely offset by estimated recall-related lost sales and
returns.

The company reported a GAAP net loss for the first six months of
2007 of US$154.7 million.  The per-share loss was increased by
US$2.02 due to an US$87 million charge for in-process R&D,
approximately US$22.2 million in transaction-related charges, a
US$1.3 million deferred financing cost write-off, a US$300,000
loss on derivative instruments and a US$9.7 million unfavorable
tax impact associated primarily with acquisition-related items.

                 About Advanced Medical Optics

Headquartered in Santa Ana, California, Advanced Medical Optics
-- http://www.amo-inc.com/-- (NYSE: EYE) develops, manufactures
and markets ophthalmic surgical and contact lens care products.
The company has operations in Germany, Japan, Ireland, Puerto
Rico and Brazil.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
July 10, 2007, Moody's Investors Service maintains Advanced
Medical Optics, Inc. ratings on review for possible downgrade
following AMO's announcement of its offer for Bausch & Lomb,
Inc. for US$75 per common share in a combination of US$45 in
cash and US$30 in AMO common stock.

These ratings remain on review for possible downgrade: B1
Corporate Family Rating; B1 Probability of Default Rating; Ba1
(LGD2/14%) rating on US$300 million senior secured revolver due
2013; Ba1 (LGD2/14%) rating on US$450 million senior secured
term loan B due 2014; B1 (LGD4/50%) rating on US$250 million
senior subordinated notes due 2017; and B3 (LGD5/81%) rating on
US$251 million convertible senior subordinated notes due 2024.


NBTY INC: Earns US$51 Million in Third Quarter Ended June 30
------------------------------------------------------------
NBTY Inc. generated net sales of US$503 million for the fiscal
third quarter ended June 30, 2007, compared to net sales of
US$475 million for the fiscal third quarter ended June 30, 2006,
an increase of US$28 million, or 6%.  Net income for the fiscal
third quarter ended June 30, 2007, was US$51 million, compared
to net income of US$30 million for the fiscal third quarter
ended June 30, 2006.

For the nine months ended June 30, 2007, net sales were
US$1.5 billion, compared to net sales of US$1.4 billion for the
prior like period, an increase of US$106 million, or 7%.  Net
income for the nine months ended June 30, 2007 was US$159
million, compared to US$74 million for the prior like period.
Net income for the nine months ended June 30, 2006, included
non-cash charges of US$14 million primarily related to a
trademark impairment charge.

At June 30, 2007, NBTY had working capital of US$552 million and
total assets of US$1.5 billion.  Included in working capital is
US$204 million of cash and short term investments, which gives
the company flexibility to respond to opportunities.

Total assets were valued at US$1.5 billion, total liabilities at
US$512.4 million, and total stockholders' equity at US$1 billion
during the end of the third quarter 2007.

                     Third Quarter Operations

Net sales for the Wholesale/US Nutrition division, which markets
Nature's Bounty, Solgar, Osteo Bi-Flex, Rexall and other brands,
increased US$21 million, or 9%, to US$248 million from US$227
million for the prior like quarter.

Gross profit for the Wholesale operation increased to 42%,
compared to 31% for the prior like quarter.

Sales for the North American Retail division decreased US$2
million, or 4%, to US$56 million from US$58 million for the
fiscal third quarter ended June 30, 2006.  At the end of the
fiscal third quarter, the North American Retail division
operated a total of 545 stores, with 460 in the US and 85 in
Canada.

European Retail sales for the fiscal third quarter ended June
30, 2007 increased 9% to US$153 million from US$140 million for
the fiscal third quarter ended June 30, 2006.  As of June 30,
2007, the European Retail business operated a total of 623
stores, comprised of 504 Holland & Barrett stores and 31 GNC
stores in the UK, 19 Nature's Way stores in Ireland, and 69
DeTuinen stores in the Netherlands. During the fiscal third
quarter ended June 30, 2007, the European Retail division opened
3 stores.

Net sales from Direct Response/E-Commerce operations for the
fiscal third quarter of 2007 decreased 5% to US$47 million from
US$49 million for the fiscal third quarter of 2006.

Online sales grew to represent 38% of total Direct Response/E-
Commerce sales for this fiscal quarter.

NBTY chairman and chief executive officer, Scott Rudolph, said:
"We are pleased to report another quarter of increased revenue
and profitability.  These increases reflect ongoing initiatives
to drive sales, increase market share and expand our premier
position as the leading nutritional supplement company in the
world.  We remain confident in our long-term outlook for NBTY
and are firmly committed to generating future growth and
increasing long-term shareholder value."

                        About NBTY Inc.

Headquartered in Bohemia, New York, NBTY Inc. (NYSE: NTY) --
http://www.NBTY.com/-- manufactures, markets and distributes
nutritional supplements in the United States and throughout the
world.  As of Sept. 30, 2005, it operated 542 Vitamin World
and Nutrition Warehouse retail stores in the United States,
Guam, Puerto Rico, and the Virgin Islands.

                          *    *    *

NBTY Inc.'s 7-1/8% senior subordinated notes due 2015 carry
Moody's Investors Service's Ba3 rating and Standard & Poo's B+
rating.


PILGRIM'S PRIDE: Board Elects Lonnie Ken Pilgrim as Chairman
------------------------------------------------------------
Pilgrim's Pride Corporation's board of directors has elected
Lonnie Ken Pilgrim to succeed his father, co-founder Lonnie "Bo"
Pilgrim, as chairman of the company.  The elder Mr. Pilgrim has
been named senior chairman and remains on the board.

Ken Pilgrim, 49, has been employed by the company since 1977 and
has been Executive Vice President, Assistant to Chairman since
November 2004.  He served as Senior Vice President,
Transportation from August 1997 to November 2004.  Prior to that
he served the Company as its Vice President, Director of
Transportation.  He has been a member of the board of directors
since March 1985.

"The appointment of Ken to chairman is part of an orderly
succession plan by the board that should be largely seamless and
invisible to our employees, customers and shareholders," Bo
Pilgrim said.  "Ken has literally grown up in the chicken
industry, learning every aspect of the business from the ground
up.  He has great instincts and a keen understanding of what it
takes to grow this company.  Our focus has always been on
delivering the best possible service, selection and value to our
customers, and treating our employees and customers with
respect, honesty and integrity.  These have been our governing
principles for more than 60 years, and will continue to guide
Pilgrim's Pride in the future."

"My father is a remarkable leader who has served as an
inspiration to everyone around him, and I am proud to carry on
his legacy of innovation and customer service," Ken Pilgrim
said.  "Thanks to his bold vision and determination, Pilgrim's
Pride today is well positioned for continued growth and success.
I am confident that we have the right strategy, resources and
team in place to be an even stronger, tougher competitor in the
years ahead."

                     About Pilgrim's Pride

Headquartered in Pittsburgh, Texas, Pilgrim's Pride Corporation
(NYSE: PPC) -- http://www.pilgrimspride.com/-- produces,
distributes and markets poultry processed products through
retailers, foodservice distributors and restaurants in the U.S.,
Mexico and in Puerto Rico.  Pilgrim's Pride employs about 40,000
people and has major operations in Texas, Alabama, Arkansas,
Georgia, Kentucky, Louisiana, North Carolina, Pennsylvania,
Tennessee, Virginia, West Virginia, Mexico and Puerto Rico, with
other facilities in Arizona, Florida, Iowa, Mississippi and
Utah.

                        *     *     *

Pilgrim's Pride Corp. carries Moody's Investors Service's B1
senior unsecured credit rating, B2 senior subordinated notes,
and Ba3 corporate family ratings.  PPC's planned new US$250
million senior unsecured notes also bears Moody's B1 rating and
its new US$200 million senior subordinated notes bears Moody's
B2 rating.  Moody's said the outlook on all ratings is stable.

Standard & Poor's Ratings Services gave Pilgrim's Pride Corp. a
'BB-' corporate credit rating.


QUANTUM CORP: Posts US$22.6 Mil. Net Loss in Qtr. Ended June 30
---------------------------------------------------------------
Quantum Corp. announced on Wednesday its results for the fiscal
first quarter ended June 30, 2007.

The company reported a GAAP net loss of US$22.6 million for the
first quarter of fiscal 2008, compared to a net loss of
US$3.6 million in the first quarter of fiscal 2007.  The
US$22.6 million net loss in the first quarter of fiscal 2008
reflected a number of major expense items totaling US$28
million, much of which was also driven by the ADIC acquisition:
US$13 million in amortization of intangibles, US$12 million in
restructuring and other transition expenses related to the
acquisition, and US$3 million in stock-based compensation
charges.  Revenue for the first quarter of fiscal 2008 was
US$246 million.  This represented a 32% increase over the same
quarter last year, largely resulting from Quantum's acquisition
of Advanced Digital Information Corp. (ADIC) in August 2006.

One of the highlights of the June quarter was Quantum's gross
margin results.  The company's GAAP gross margin rate was 31.8%,
a significant increase over the 27.9% rate in the same quarter
last year and its best performance in three years.  Operating
expenses were US$92 million, up from US$55 million in the first
quarter of fiscal 2007 primarily as a result of the ADIC
acquisition.

"It has been just under a year since we completed the ADIC
acquisition, and we are very pleased with what we have been able
to achieve as a combined company in this relatively short time,"
said Rick Belluzzo, chairman and chief executive officer of
Quantum.  "As in previous years, the June quarter was
challenging from a revenue standpoint, but our operating income
as a percentage of revenue over the last three quarters has been
the best we've achieved in more than five years, when
amortization, stock-based compensation and acquisition-related
expenses are excluded.  In addition, we've completed the vast
majority of the integration and strategic actions that will now
allow us to focus on growing the business by taking advantage of
our expanded opportunities."

Quantum's product revenue, which includes sales of the company's
hardware and software products and services, totaled US$222
million in the first quarter of fiscal 2008.  This represented a
net increase of US$63 million over the first quarter of fiscal
2007, with greater revenue contributions from tape automation,
disk systems and software, and services offsetting a decline in
royalties and device revenues.  Quantum continued to increase
the percentage of its product revenue coming from branded sales,
which rose to 58% in the June quarter.

Quantum had US$24 million in royalty revenue for the first
quarter of fiscal 2008, down approximately US$3.5 million from
the same quarter last year.

                Disk Systems and Software Momentum

In announcing its June quarter results, Quantum also highlighted
the momentum in its disk systems and software business.  The
company began shipping its DXi3500 and DXi5500 disk backup
appliances with data de-duplication and remote replication
capabilities less than six months ago, and in the last two
months alone has sold nearly twice as many units as it did in
the previous four months.  These DXi-Series products have
attracted a broad range of customers around the world -- from
smaller organizations to leading brand name companies to major
governmental agencies -- with representation across a wide array
of industries, including telecommunications, financial services,
health care, education, technology, and consumer products.

Quantum also pointed to several competitive advantages that
position it to capitalize on the opportunities in disk-based
data protection moving forward.  Along with Quantum's global
scale and strong sales and service infrastructure, these
advantages include a large installed base of tape automation
customers it can help in transitioning to disk backup and an
industry-leading tape library portfolio the company can leverage
in bundled disk-tape offerings. Quantum is already seeing the
benefits of this combination, as roughly 20% to 25% of customers
that purchase a DXi-Series unit also buy tape at the same time.

In addition to building momentum in its disk-based backup
business over the last several months, Quantum has strengthened
its StorNext data management software portfolio.  In April, the
company introduced StorNext 3.0, which extends high performance,
resilient data sharing to local area network clients and offers
data de-duplication for archiving.  Quantum has also enhanced
its StorNext market position with HP as a global reseller and
continued to gain new enterprise customers such as Microsoft,
Fox News and the U.S. Bureau of Land Management.

At June 30, 2007, the company's consolidated balance sheet
showed US$1.1 billion in total assets, US$872.0 million in total
liabilities, and US$238.4 million in total stockholders' equity.

Full-text copies of the company's consolidated financial
statements for the quarter ended June 30, 2007, are available
for free at http://researcharchives.com/t/s?2209

Headquartered in San Jose, California, Quantum Corp. (NYSE: QTM)
-- http://www.quantum.com/-- is a global leader in storage,
delivers highly reliable backup, recovery and archive solutions
that meet demanding requirements for data integrity and
availability with superior price/performance and comprehensive
service and support.  Quantum offers customers of all sizes an
unparalleled range of solutions, from leading tape drive and
media technologies, autoloaders and libraries to disk-based
backup systems.  In Latin America, the company has distributors
in Argentina, Brazil, Chile, Mexico and Puerto Rico.  In Europe,
the company maintains operations in Denmark, Czech Republic,
Romania, Portugal, France, Germany, and the United Kingdom.

As reported in the Troubled Company Reporter-Latin America on
June 19, 2007, Standard & Poor's Ratings Services said that it
affirmed its 'B' corporate credit rating on San Jose, Calif.-
based Quantum Corp.  At the same time, Standard & Poor's revised
its outlook on Quantum to positive from stable.  Standard &
Poor's also assigned its 'B+' bank loan rating and '2' recovery
rating to the company's proposed US$450 million senior secured
bank facility, reflecting our expectation for substantial (70%-
90%) recovery of principal by creditors in the event of a
payment default.  The proposed bank facility will consist of a
US$50 million revolving credit facility, due 2012, and a US$400
million term loan, due 2014.




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


NORTHWEST AIRLINES: Inks Pact with ALPA on Contract Improvements
----------------------------------------------------------------
Northwest Airlines Corp. and negotiators for the Air Line Pilots
Association have reached a tentative agreement on a variety of
contract issues and pilot work rules.  The tentative agreement,
the product of a collaborative process between the union and
NWA, is subject to ratification by the Northwest ALPA Master
Executive Council.

"This is an important part of our efforts to achieve operational
reliability," Doug Steenland, Northwest Airlines president and
CEO, said.  "I'm pleased that we've been able to work
collaboratively with ALPA on these contract improvements and
that both parties share a commitment to caring for our
customers."

In broad outline, the airline obtained contractual changes on
several work rules pertaining to international flying as well as
the settlement of outstanding grievances in exchange for the
reinstatement of premium pay of 50% for all pilots, for any
flying over 80 hours, effective Aug. 1, 2007.

             Summer Reliability Incentive Program

The company is implementing a Summer Reliability Incentive
Program under which all contract employees, including pilots if
the proposal is ratified by the MEC, who achieve perfect
attendance from Aug. 4 through Sept. 3, inclusive, will receive
incentive pay equal to 15% of eligible earnings up to US$1000.

"We are committed to delivering a reliable, convenient product
for our customers," Steenland said. "We believe these steps will
provide additional support for our operation during the month of
August and beyond."

                  About Northwest Airlines

Northwest Airlines Corp. (NYSE: NWA) -- http://www.nwa.com/--
is the world's fourth largest airline with hubs at Detroit,
Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and about
1,400 daily departures.  Northwest is a member of SkyTeam, an
airline alliance that offers customers one of the world's most
extensive global networks.  Northwest and its travel partners
serve more than 1000 cities in excess of 160 countries on six
continents, including Italy, Spain, Japan, China, Venezuela and
Argentina.

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

                        *     *     *

As reported in the Troubled Company Reporter on June 12, 2007,
Standard & Poor's Ratings Services raised its ratings on certain
enhanced equipment trust certificates of Northwest Airlines Inc.
(B+/Stable/--) and removed the ratings from CreditWatch.

Certain other ratings were withdrawn or remain on CreditWatch,
and ratings of 'AAA' rated, insured EETCs, which were not on
CreditWatch, were affirmed.

As reported in the Troubled Company Reporter on June 4, 2007,
Standard & Poor's Ratings Services raised its ratings on
Northwest Airlines Corp. and its Northwest Airlines Inc.
subsidiary, including raising the long-term corporate credit
ratings on both entities to 'B+' from 'D', following their
emergence from Chapter 11 bankruptcy proceedings.  The rating
outlook is stable.

In addition, S&P assigned a 'BB-' bank loan rating, one notch
above the corporate credit rating, with a '1' recovery rating,
to Northwest Airlines Inc.'s $1.225 billion bankruptcy exit
financing, based on S&P's expectation of a full recovery of
principal in the event of a second Northwest bankruptcy.   That
bank facility converted from a debtor-in-possession credit
facility; S&P withdrew the 'BBB-' rating on the DIP facility.


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

                                Total
                                Shareholders  Total
                                Equity        Assets
Company                 Ticker  (US$MM)       (US$MM)
-------                 ------  ------------  -------
Arthur Lange             ARLA3      (8.88)      56.71
Kuala                    ARTE3     (33.57)      11.86
Ceper-Inv                CEP        (7.77)     120.08
Ceper-B                  CEP/B      (7.77)     120.08
CIC                      CIC    (1,883.69)  22,312.12
Telefonica Hldg          CITI   (1,481.31)     307.89
Telefonica Hldg          CITI5  (1,481.31)     307.89
SOC Comercial PL         COME     (738.69)     456.86
Angel Estrada            ESTR      (68.23)      68.97
Estrada-A                ESTR5     (68.23)      68.97
Bombril Holding          FPXE3  (1,064.31)      41.97
Gazola                   GAZ03     (43.13)      22.28
Hercules                 HETA3    (233.64)      33.23
IMPSAT Fiber Networks    IMPTQ     (17.16)     535.01
Kepler Weber             KEPL3     (22.20)     478.81
Minupar                  MNPR3     (27.02)     206.98
Telebras-CM RCPT         RCTB30   (139.38)     235.03
Schlosser                SCL03     (55.17)      51.93
Telebras SA              TELB3    (139.38)     235.03
Telebras-CM RCPT         TELE31   (139.38)     235.03
Telebras SA              TLBRON   (139.38)     235.03
Varig SA                 VAGV3  (8,194.58)   2,169.10
FER C Atlant             VSPT3    (151.49)   1,914.18
WIEST                    WISA3    (107.73)      92.66



                         ***********


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

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

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

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

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

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


           * * * End of Transmission * * *