TCRLA_Public/070810.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

           Friday, August 10, 2007, Vol. 8, Issue 158

                          Headlines

A R G E N T I N A

AEROSOL SINTESIS: Creditors Voting on Settlement Plan Today
CANON DE ESMERALDA: Proofs of Claim Verification Ends on Oct. 3
DELTA AIR: Creditors Want Reorganized Debtors to Comply w/ Plan
EL ORO: Proofs of Claim Verification Deadline Is Sept. 28
FIAT SPA: Inks MOU with Chery Auto to Build Chinese Cars

FERRO CORP: Reports US$4.5 Mln Net Income in 2007 Second Quarter
KONINKLIJKE AHOLD: Posts Preliminary Second Quarter 2007 Results
NORTHWEST AIRLINES: Next Periodic Distribution Date Is Oct. 1
TECNAT SA: Seeks Bankruptcy Approval from Buenos Aires Court
TECNIC LIMP: Proofs of Claim Verification Is Until Oct. 10

TEXTIL UNO: Proofs of Claim Verification Deadline Is Sept. 12


B A H A M A S

METROPOLITAN BANK: First-Half Net Profit Up 34.3% to PHP3.7BB


B E R M U D A

CRIMEA INC: Proofs of Claim Must be Filed by Aug. 22
CRIMEA INC: Will Hold Final Shareholders Meeting on Aug. 22
J.P. MORGAN: Proofs of Claim Filing Ends Today
SPECTRUM (BERMUDA): Proofs of Claim Filing Is Until Today


B R A Z I L

ALERIS INTERNATIONAL: Names Joseph Mallak as Sr. Vice President
BANCO NACIONAL: Approves BRL35-Million Loan to Coopercentral
BANCO NACIONAL: To Supervise Brasil Telecom-Oi Merger
BANCO SCHAHIN: Obtains US$40-Million Financing from IDB
BRASIL TELECOM: Banco Nacional Overseeing Merger with Oi

COMPANHIA SIDERURGICA: Delays Casa de Pedra Expansion Works
EMI GROUP: Total Revenue at Constant Currency Down 5.1% in 2007
EMI GROUP: Moody's Cuts Corp. Family & Sr. Debt Ratings to B1
FORD MOTOR: Recalls 3.6 Million Vehicles to Fix Cruise Control
FORD MOTOR: Wants Tentative Land Rover & Jaguar Deal by Sept. 30

FORD MOTOR: June 30 Balance Sheet Upside-Down by US$1.9 Billion
GERDAU AMERISTEEL: Earns US$139.1 Million in 2007 First Quarter
HEXION SPECIALTY: Funds US$100 Million of Incremental Term Loans
JAPAN AIRLINES: Revises Frequency Plan for 2007 Second Half
MILACRON INC: Incurs US$100,000 Net Loss in Qtr. Ended June 30

MRS LOGISTICA: Posts Record High Cargo Shipment in July 2007
SANYO ELECTRIC: Invests THB466 Million in Thai Unit
XERIUM TECH: Paying US$0.1125 Per Share Dividend on Sept. 14

* BRAZIL: Gets US$120-Million Loan from IDB for Biofuel Project


C A Y M A N   I S L A N D S

CATLEIA OIL: Will Hold Final Shareholders Meeting on Sept. 7
CLEMATIS FINANCIAL: Sets Final Shareholders Meeting for Sept. 6
CLEMATIS FINANCIAL FUND: Final Shareholders Meeting on Sept. 6
CONTEL PAGE: Will Hold Final Shareholders Meeting on Sept. 7
CREDIT CARDS: Proofs of Claim Must be Filed by Sept. 6

CYGNUS ASSET: Sets Final Shareholders Meeting for Sept. 6
FCT PACIFIC: Will Hold Final Shareholders Meeting on Sept. 6
G-MAX 2002: Proofs of Claim Filing Deadline Is Sept. 6
GRIFFIN (CAYMAN): Proofs of Claim Filing Ends on Sept. 6
GSO CALMET: Sets Final Shareholders Meeting for Sept. 7

IVY MA (CAYMAN 5): Final Shareholders Meeting Is on Sept. 7
IVY MA (CAYMAN 8): Final Shareholders Meeting Is on Sept. 7
M & M ARBITRAGE: Sets Final Shareholders Meeting for Sept. 6
MERRILL LYNCH: Sets Final Shareholders Meeting for Sept. 6
MERRILL LYNCH (EURO): Final Shareholders Meeting Is on Sept. 6

MERRILL LYNCH (USD): Sets Final Shareholders Meeting on Sept. 6
NEST FUNDING: Proofs of Claim Filing Ends on Sept. 7
NISHI-NIPPON: Proofs of Claim Must be Filed by Sept. 6
NISHI-NIPPON: Will Hold Final Shareholders Meeting on Sept. 6
PURE IP: Will Hold Final Shareholders Meeting on Sept. 7


C H I L E

GERDAU SA: Earns BRL1.7 Billion in First Six Months
GERDAU SA: Construction Sector Crisis Won't Affect Performance
SUN MICROSYSTEMS: Restructuring Plan Calls for Workforce Cut


C O L O M B I A

BANCOLOMBIA: Says Banagricola Would Represent 15% of Profits
SOLUTIA INC: Judge Beatty Rejects Disclosure Statement
SOLUTIA INC: Creditors' Committee Wants Settlements Approved


C O S T A   R I C A

ALCATEL-LUCENT: Court Reverses US$1.5-Bln Microsoft MP3 Ruling

* COSTA RICA: Recope Sells Bidding Rules for Fuels Import Tender


D O M I N I C A N   R E P U B L I C

BANCO INTERCONTINENTAL: Central Bank Spends DOP74B on Bank


E C U A D O R

PETROECUADOR: Gets US$20 Million from Economy & Finance Ministry


E L   S A L V A D O R

HERBALIFE LTD: Wedbush Morgan Reaffirms Buy Rating on Firm


G U A T E M A L A

BANCO INDUSTRIAL: Merger Deal Prompts Moody's to Affirm Ratings
BRITISH AIRWAYS: Arraignment in the U.S. Expected Next Week


G U Y A N A

FLOWSERVE CORP: Earns US$63.2 Million in Quarter Ended June 30


H A I T I

CENVEO INC: Reports US$2.8 Million in Quarter Ended June 30


M E X I C O

BALLY TOTAL: Court Sets Sept. 17 Plan Confirmation Hearing
BALLY TOTAL: Gets Interim Okay to Hire Kirkland as Counsel
BLOCKBUSTER INC: Inks Acquisition Deal with Movielink
CINRAM INTERNATIONAL: Randall Yasny Steps Down as Trustee
MAZDA MOTOR: All-New Mazda Demio Sales Take Off in Japan

MAZDA MOTOR: April-June Profit Drops 63% to JPY2.48 Billion
TCL CORP: PC Unit Posts Profit; Rules Out Planned Disposal
TCL CORP: Posts CNY45.1-Million Net Profit in 2007 First Half
SENSATA TECH: Incurs US$44.9 Mln Net Loss in 2007 Second Quarter
WARNER MUSIC: June 30 Balance Sheet Upside-Down by US$23 Million


P E R U

ALCATEL-LUCENT: To Upgrade nTelos' Wireless Network
ALITALIA SPA: Chairman Eyes Shakeup of AZ Servizi Unit
DOE RUN: Hires 200 Former Outsourcers in Peru


P U E R T O   R I C O

HORIZON LINES: Paying US$0.11 Per Share Dividend on Sept. 15
MUSICLAND HOLDING: Buena Vista Seeks to Recover US$25 Million
MUSICLAND HOLDING: Harris Wants Buena Vista Complaint Dismissed
NUTRITIONAL SOURCING: Organizational Meeting Set for Aug. 13
NUTRITIONAL SOURCING: Has Until Oct. 2 to File Schedules

NUTRITIONAL SOURCING: Wants Kay Scholer as Bankruptcy Counsel


T R I N I D A D   &   T O B A G O

MIRANT CORP: Settles 2006 Pepco Disputes, Gains US$370 Million


U R U G U A Y

NAVIOS MARITIME: Completes Exchange Offer for 9-1/2% Sr. Notes

* URUGUAY: Inks Energy Security Treaty with Venezuela


V E N E Z U E L A

ARMOR HOLDINGS: BAE Purchase Cues Moody's to Confirm Ratings
CITGO PETROLEUM: Providing US$3.3MM for Community Dev't in Bronx
PETROLEOS DE VENEZUELA: Says Operations Unaffected by Strikes

* VENEZUELA: Inks Energy Security Treaty with Uruguay


                            - - - - -

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


AEROSOL SINTESIS: Creditors Voting on Settlement Plan Today
-----------------------------------------------------------
Aerosol Sintesis S.A.'s creditors will vote on a settlement plan
that the company will lay on the table on Aug. 10, 2007.

Oscar Epstein, the court-appointed trustee for Aerosol Sintesis'
insolvency case, verified creditors' proofs of claim until
Nov. 15, 2006.  Mr. Epstein present the validated claims in
court as individual reports.  He also submitted a general report
containing an audit of Aerosol Sintesis' accounting and banking
records.

The debtor can be reached at:

         Aerosol Sintesis S.A.
         Helguera 3612
         Buenos Aires, Argentina

The trustee can be reached at:

         Oscar Epstein
         Viamonte 1620
         Buenos Aires, Argentina


CANON DE ESMERALDA: Proofs of Claim Verification Ends on Oct. 3
---------------------------------------------------------------
Juan Carlos Alcoaz, the court-appointed trustee for Canon de
Esmeralda SA's bankruptcy proceeding will verify creditors'
proofs of claim Oct. 3, 2007.

Mr. Alcoaz will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 8 in Buenos Aires, with the assistance of Clerk No.
15, 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 Canon de Esmeralda 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 Canon de Esmeralda's
accounting and banking records will be submitted in court.

La Nacion didn't state the reports submission deadlines.

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

The debtor can be reached at:

          Canon de Esmeralda SA
          Esmeralda 524
          Buenos Aires, Argentina

The trustee can be reached at:

          Juan Carlos Alcoaz
          Avenida Cordoba 1522
          Buenos Aires, Argentina


DELTA AIR: Creditors Want Reorganized Debtors to Comply w/ Plan
---------------------------------------------------------------
Comair Creditors, namely Lehman Brothers Inc., Varde Partners,
Inc., Talek Investments, Par-Four Investment Management, LLC,
Societe Generale Corporate & Investment Banking, Contrarian
Capital Management, LLC, and Cypress Management, claim the
Reorganized Delta Air Lines Inc. and its affiliates are
violating the terms of the confirmed Joint Plan of
Reorganization.

Lehman, et al., ask Judge Hardin of the U.S. Bankruptcy Court
for the Southern District of New York to direct the Reorganized
Debtors to obtain Court approval with respect to (i) certain
postpetition aircraft agreements relating to aircraft assets and
(ii) the resolution of claims that have an estimated or face
amount in excess of US$30,000,000, in accordance with the
express terms of the Plan.

On behalf of the Comair Creditors, Evan C. Hollander, Esq., at
White & Case LLP, in New York, relates that just seven short
weeks following confirmation of the Plan, the Debtors revised
their estimate of the unsecured claims pool at Comair from
US$800,000,000 to US$1,050,000,000.  This increase in the Comair
claims pool, according to Lehman, would reduce the expected
recovery of Comair's unsecured creditors under the Plan by more
than 20% from that projected in the Debtors' disclosure
statement.

Lehman, et al., were advised that a significant portion of the
increase in the estimate of the Comair claims pool was
attributable to an agreement between the Debtors and an
aircraft finance counterparty relating to the restructuring of
certain aircraft agreements in respect of 37 Comair aircraft.

The Reorganized Debtors' attempt to shield the terms and nature
of these recent deals from judicial scrutiny is particularly
troubling given the significant impact that they will have on
anticipated recoveries for the unsecured creditors of the Comair
Debtors, Mr. Hollander asserts.

Pursuant to the Plan, holders of general unsecured claims
against the Debtors will receive stock in reorganized Delta.
The New Delta Common Stock is to be divided between the Delta
Debtors and the Comair Debtors based on what was then projected
to be "the mid-point of the equity valuation range for the
Comair Debtors (i.e. US$730,000,000) relative to the mid-point
valuation of the equity valuation range for the Delta Debtors
(i.e., US$10,000,000,000).

The Debtors' publicly disclosed estimate of the total unsecured
claims against the Comair Debtors, as of February 2, 2007, was
US$800,000,000, while the total unsecured claims against the
Delta Debtors was estimated at approximately US$14,200,000,000.

The Disclosure Statement provides that parties holding general
unsecured claims against the Comair Debtors were projected to
recover 76% to 100% of the claims, while holders of general
unsecured claims against the Delta Debtors were projected to
recover 62% to 78% of the claims.

Mr. Hollander notes that at no time prior to the April 9, 2007
deadline to cast ballots with respect to the proposed Plan did
the Debtors update their disclosure or provide any advice as to
a material change to their estimate of the total amount of
unsecured claims in the Comair claims pool.

On June 13, 2007, Edward H. Bastian, Delta's executive vice
president and chief financial officer, spoke at the Merrill
Lynch Global Transportation Conference.  Mr. Bastian disclosed
for the first time that Delta expected the aggregate amount of
allowed claims against the Comair Debtors to be
US$1,050,000,000.

The substantial increase in the Comair Debtors claims pool has
reduced the mid-point of the projected recovery of Comair
unsecured creditors from 91.25% to about 69.52%, Mr. Hollander
points out.  Thus, he asserts, the expected recovery of the
Comair Debtors' unsecured creditors has plummeted by more than
20% from the amount of recovery projected by the Debtors in the
Disclosure Statement.

On June 22, 2007, counsel to Lehman, et al., sent a letter to
counsel for the Reorganized Debtors to inquire about the
significant increase in the Comair claims pool and the
corresponding reduction of the anticipated recoveries.  The
letter also requested the Debtors to confirm that they would
obtain Court approval with respect to restructuring proposals
related to aircraft assets and the resolution of claims in
excess of US$30,000,000.  A similar letter was sent to the Post-
Effective Date Committee.

On June 27, 2007, both the Reorganized Debtors and the Post-
Effective Date Committee responded to the request, indicating
that they did not intend to seek Court approval for the
settlements.  They contend that the Plan does not require Court
authorization for aircraft restructuring proposals or claims
settlements of any nature.

Section 9.2 of the Plan sets forth the circumstances under which
the Reorganized Debtors are authorized to resolve Disputed
Claims without further Court approval.  Section 9.2, however,
does not authorize the Reorganized Debtors to "compromise,
settle, or otherwise resolve any Disputed Claims [with respect
to those matters described in Section 17.5(d)] without notice to
or approval by the Bankruptcy Court or any other party."

Section 17.5(d) provides that the Post-Effective Date Committee
will only have standing and power to participate in these court
proceedings as the deemed successor-in-interest to the Official
Committee of Unsecured Creditors:

  (i) any matters related to proposed modifications or
      amendments to the Plan;

(ii) any applications for allowance of compensation of
      Professionals;

(iii) any actions to enforce, implement or interpret the Plan or
      to compel the Debtors to make distributions under the
      Plan;

(iv) any appeals to which the Creditors Committee is party
      as of the Effective Date;

  (v) actions, if any, relating to approval of Post-Petition
      Aircraft Agreements;

(vi) actions, if any, relating to approval of the treatment
      selected by the Debtors for holders of Allowed Secured
      Aircraft Claims against the Delta Debtors and the Comair
      Debtors;

(vii) objections to, or estimations of, any Claims that have an
      estimated or face amount in excess of US$30,000,000 to
      which either (a) the Creditors Committee has filed an
      objection before the Confirmation Date and the Creditors
      Committee's position with respect to such objection is
      Materially different from the position of the Debtors or
      the Reorganized Debtors; or (b) the Post-Effective Date
      Committee requested in writing that the Reorganized
      Debtors estimate or object and the Reorganized Debtors
      have failed to undertake such estimation or objection
      within 30 calendar days of such written request;

(viii) actions under or pursuant to the Aircraft Claims
       Objection Procedures Order; and

(ix) such other matters as may be mutually agreed upon in
      advance and in writing by the Post-Effective Date
      Committee and Reorganized Delta, each in their sole
      discretion.

Mr. Hollander notes that if the Debtors or Reorganized Debtors
were free to compromise and resolve matters involving Post-
Petition Aircraft Agreements without first obtaining the Court's
approval as they contend, there would be no need for the Plan to
expressly authorize the Post-Effective Date Committee to
participate in "court proceedings" relating to the approval of
the agreements.

Similarly, he notes, if the Reorganized Debtors were permitted
to resolve the matters described in Section 17.5(d) without
first obtaining Bankruptcy Court approval, the language in
Section 9.2 describing the Disputed Claims that the Reorganized
Debtors can resolve "without notice to or approval by the
Bankruptcy Court" would be rendered mere surplusage.

As the Reorganized Debtors' interpretation of the Plan would
contravene cardinal rules of contract interpretation requiring
that all words in a contract be given effect, the interpretation
cannot stand, Mr. Hollander asserts, citing, among others,
Charter Asset Corp. v. Victory Mkts. (In re Victory Mkts.), 221
B.R. 298, 303 (B.A.P. 2d Cir. 1998).

Thus, the Reorganized Debtors should be directed to submit to
the Bankruptcy Court for approval (i) the Aircraft Finance
Settement and (ii) any of the other aircraft restructuring
agreements or claim settlements reviewed by the Post-Effective
Date Committee which constitute Post-Petition Aircraft
Agreements, Mr. Hollander asserts.

Although Section 17.5(d)(vii) operates to circumscribe the
rights of the Post-Effective Date Committee to participate in
court proceedings concerning claims exceeding US$30,000,000 to
situations in which either (i) the Creditors Committee filed a
written objection before the Confirmation Date or (ii) the Post-
Effective Date Committee sent a written request to the
Reorganized Debtors seeking an estimation or objection and the
Reorganized Debtors fail to undertake such estimation or
objection within 30 calendar days of the written request, this
fact is of no moment, maintains Mr. Hollander.

He relates that the limitation on the Post-Effective Date
Committee's rights is explained by the fact that it alone would
have had an opportunity to review the claims prior to any court
proceedings, and that it should, therefore, not have an
opportunity to raise an objection in court where no objection
had been raised previously.  This, of course, he says, has no
bearing on the issue of whether other parties-in-interest who
were not given a prior opportunity to review significant
settlements should be precluded from participating in the court
proceedings mandated by Section 17.5(d).

Section 17.5(d)(vii) does not operate to limit the rights of any
party other than the Post-Effective Date Committee, Mr.
Hollander avers.  If the Debtors intended to disenfranchise all
parties other than the Post-Effective Date Committee from the
claims resolution process, including the Bankruptcy Court, they
should have done so clearly and explicitly in the Plan, he
points out.  "They did not."

Accordingly, Mr. Hollander asserts, the Reorganized Debtors
should be directed to comply with a plain reading of the terms
of the Plan and also seek Bankruptcy Court approval of matters
involving claims exceeding US$30,000,000.

                       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.

The Debtors filed a chapter 11 plan of reorganization and
disclosure statement explaining that plan on Dec. 19, 2007.
On Jan 19, 2007, they filed revisions to the plan and disclosure
statement, and submitted further revisions to the plan on
Feb. 2, 2007.  On Feb. 7, 2007, the Court approved the Debtors'
disclosure statement.  In April 2007, the Court confirmed the
Debtors' plan.  (Delta Air Lines Bankruptcy News, Issue No. 76;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)

                        *     *     *

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 ines Inc. (B/Stable/--), including raising the corporate
credit rating to 'B', with a stable outlook, from 'D', following
the irline's emergence from Chapter 11 bankruptcy proceedings.


EL ORO: Proofs of Claim Verification Deadline Is Sept. 28
---------------------------------------------------------
Marisa Beatriz Arata, the court-appointed trustee for El Oro
Negro Empresa de Viajes y Turismo S.R.L.'s reorganization
proceeding, verifies creditors' proofs of claim until
Sept. 28, 2007.

Ms. Arata will present the validated claims in court as
individual reports on Nov. 13, 2007.  The National Commercial
Court of First Instance in Mendoza 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 El Oro 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 El Oro's accounting
and banking records will be submitted in court on Dec. 28, 2007.

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

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

The debtor can be reached at:

         El Oro Negro Empresa de Viajes y Turismo S.R.L.
         Colombres 96, Lujan de Cuyo
         Mendoza, Argentina

The trustee can be reached at:

         Marisa Beatriz Arata
         Buenos Aires 502, Ciudad de Mendoza
         Mendoza, Argentina


FIAT SPA: Inks MOU with Chery Auto to Build Chinese Cars
--------------------------------------------------------
Italy's Fiat Auto had signed a memorandum of agreement with
china's Chery Automobile to form a joint venture to make cars
under both badges for the local market, China Daily reports.

The 50-50 venture, to be located in the eastern city of Wuhu,
Chery's home base, will start building and marketing cars under
the Fiat, Alfa Romeo and Chery badges in 2009, with an annual
production of 175,000 units, the report relates, citing chery
Auto's statement.

The statement, however, did not reveal how much the two parties
will spend on the venture and what specific models will be
introduced, and that the project still needs government
approval.

Li Chunbo, an auto analyst with CITIC Securities Co. in Beijing,
told the Daily that Chery, which has remained staunchly
independent in the past, will benefit a lot from the
collaborations.  "These tie-ups will greatly help Chery boost
its development, sales and profits," Mr. Li said.

Chery plans to raise its annual sales to 1 million cars by 2010
from more than 400,000 units expected this year, the paper says.

Sergio Marchionne, the Italian carmaker's chief executive
officer, said in a statement that the deal with Chery represents
a "milestone" for Alfa Romeo's global expansion and will
facilitate development of Fiat's brand in China, China Daily
notes.

Fiat, according to the report, had recently indicated that it
aims to boost China sales to 263,000 cars a year by 2010 from
32,000 units in 2006, and will introduce a slew of new models
into the country in coming years, such as the Linea, Grande
Punto and Alfa Romeo 159.

                       About Fiat SpA

Headquartered in Turin, Italy, Fiat S.p.A. --
http://www.fiatgroup.com/-- manufactures and sells automobiles,
commercial vehicles, and agricultural and construction
equipment.  It also manufactures, for use by the company's
automotive sectors and for sale to third parties, other
automotive-related products and systems, principally power
trains (engines and transmissions), components, metallurgical
products and production systems.  Fiat's creditors include Banca
Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del
Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano.

Fiat operates in Argentina, Australia, Austria, Belgium, Brazil,
Bulgaria, China, Czech Republic, Denmark, France, Germany,
Greece, Hungary, India, Ireland, Italy, Japan, Lituania,
Netherlands, Poland, Portugal, Romania, Russia, Singapore,
Spain, among others.

                        *     *     *

As of June 19, 2007, Fiat S.p.A. carries Moody's Long-Term
Corporate Family Rating of Ba2 and Probability of Default Rating
at Ba2 with positive outlook.

Standard & Poor's give Long-Term Foreign and Local Issuer Credit
Ratings of BB+ for Fiat.  Its Short-term Foreign and Local
Issuer Credit Ratings are at B with Positive Outlook.

Dominion Bond Rating Service gives Fiat a Long-term Issuer
Rating of BB with Positive Outlook.


FERRO CORP: Reports US$4.5 Mln Net Income in 2007 Second Quarter
----------------------------------------------------------------
Ferro Corporation earned net income of US$4,5 million for the
three months ended June 30, 2007, compared to net income of
US$10.2 million for the same period in 2006.  The company
recorded sales of US$554 million for the quarter ended
June 30, 2007, up 3 percent from sales of US$538 million in the
second quarter of 2006.

Income from continuing operations for the 2007 second quarter
was US$4.6 million compared with US$10.5 million in the second
quarter of 2006.  Income from continuing operations declined
primarily as a result of previously announced manufacturing
rationalization, the costs of a temporary plant shutdown, and
higher selling, general and administrative costs due to
litigation settlements.  These higher costs were partially
offset by lower interest expenses.  The 2007 second quarter
income from continuing operations included net pre-tax expenses
of US$10.0 million primarily related to a reserve for litigation
settlements and manufacturing rationalization costs.  The second
quarter 2006 income from continuing operations included net pre-
tax expenses of US$3.7 million from expenses primarily related
to the write-off of previously unamortized fees and discounts
related to the Company's debentures and an accounting
investigation and restatement.

"We maintained sales in the quarter, as our international
business helped compensate for the effects of weak residential
construction, appliance and automotive markets in the U.S.,"
said Chairman, President and Chief Executive Officer James F.
Kirsch.  "Our segment income was negatively impacted by an
interruption of manufacturing of our South Plainfield, New
Jersey plant.  However, we have improved the profitability in
our Organic Specialties Group, through product repositioning and
expense control. We continue to execute our restructuring
programs to improve the cost structure to support our worldwide
brand, technology and applications understanding."

Changes in foreign currency exchange rates accounted for the
increase in sales compared with the second quarter of 2006.
Price increases and volume declines were largely offsetting
during the quarter.  Volumes were lower overall, driven by
weaker market conditions in Electronic Materials, Polymer
Additives and Specialty Plastics.  Volumes were higher in
Performance Coatings compared with the second quarter of 2006.

Gross margins were 19.4 percent of sales for the second quarter,
compared with 20.6 percent of sales in the second quarter of
2006.  The company's 2007 second quarter gross profit was
reduced by US$1.9 million in accelerated depreciation costs
related to manufacturing rationalization activities.  Gross
margins were also negatively impacted by an interruption of
manufacturing activities at our South Plainfield, New Jersey
plant.  Operations at the site were resumed after operational
and safety issues were addressed, however, the interruption
resulted in approximately US$3 million in unrecovered
manufacturing costs and other expenses during the quarter.  In
addition, gross margin as a percent of sales continues to be
negatively impacted by rising precious metal costs.  Higher
precious metal costs are passed through to customers with
minimal contribution to margins.

Selling, general and administrative (SG&A) expense was US$84.4
million in the second quarter of 2007, or 15.2 percent of sales.
Included in SG&A expense are charges totaling US$7.8 million,
primarily related to an increased reserve for litigation
settlements.  SG&A expense in the second quarter of 2006 was
US$78.7 million, or 14.6 percent of sales, including charges of
US$1.6 million primarily related to the accounting restatement.

Interest expense for the 2007 second quarter was US$14.3
million, compared with US$18.1 million in the year-ago period.
The 2006 second quarter interest expense included a non-cash
US$2.5 million write-off of unamortized fees and discounts
associated with the company's debentures.  Interest expense also
declined from the prior-year period as a result of lower
borrowing levels resulting from the elimination of cash deposits
on precious metal consignments.  The elimination of these
deposits also resulted in a decline in interest income during
the second quarter compared with the second quarter of 2006.

The company's tax rate for the second quarter increased to 37.9
percent from 32.8 percent in the 2006 second quarter.  The
higher rate was largely the result of the mix of income by
country and an increase in the anticipated level of foreign
current-year earnings to be repatriated.

Total debt on June 30, 2007 was US$559.2 million, a decrease of
US$33.2 million from the end of 2006.  The company had net
proceeds of US$61.3 million from its U.S. accounts receivable
securitization program as of June 30, 2007, compared with
US$60.6 million at the end of 2006.  It had US$39.4 million in
net proceeds from similar programs outside the U.S. at the end
of the quarter, compared with US$33.7 million at the end of
2006.

                       Segment Results

Sales in the Performance Coatings segment increased in both the
tile and porcelain enamel product areas compared with the prior-
year quarter.  Both the Performance Coatings and Color and Glass
Performance Materials segments experienced growth in
international sales, particularly in Europe.  Sales in Polymer
Additives also increased compared with the prior year quarter,
with increased sales in both North America and internationally,
driven by repositioning sales toward a more favorable price and
product mix.  Sales in Electronic Materials declined in the
quarter, primarily driven by weaker dielectric materials demand
from supply chain inventory reductions by customers who
manufacture capacitors.  Sales in Specialty Plastics declined
compared with the second quarter of 2006, largely due to weaker
demand in the U.S. residential housing, appliance and automotive
markets.

Total segment income for the second quarter of 2007 was US$40.4
million compared with US$42.7 million in the prior-year period.
The decline was driven by reduced segment income in the
Electronic Material Systems segment as a result of lower volumes
of dielectric materials sold and the impact of the temporary
interruption of manufacturing at the South Plainfield site.
Segment income also declined modestly in Performance Coatings,
driven by lower income in the Company's porcelain enamel
business.  Segment income increased in Color and Glass
Performance Materials as a result of higher sales.  Income also
was higher in the Polymer Additives and Specialty Plastics
segments primarily as a consequence of expense control
initiatives taken during late 2006 and early 2007 in response to
weak market conditions.

                           Outlook

The company expects sales to increase in the third quarter
compared with sales of US$501 million in the third quarter of
2006.  Consistent with historical seasonality, sales are
expected to decline sequentially from the second quarter of
2007.  Sales for the third quarter, ending Sept. 30, are
expected to be in the range of US$505 million to US$530 million.
Sales in Electronic Material Systems are expected to increase
sequentially from the second quarter of 2007 and compared with
the prior-year quarter, as demand from manufacturers of
capacitors recovers.  Sales in Performance Coatings, Color and
Glass Performance Materials and Polymer Additives are expected
to increase compared with the prior-year period.

Net income per share in the third quarter is expected to be in
the range of 17 to 22 cents per share, including approximately 2
cents per share for charges related to the company's
manufacturing rationalization activities.  Net income per share
in the third quarter of 2006 was 12 cents per share.

Headquartered in Cleveland, Ohio, Ferro Corporation (NYSE: FOE)
-- http://www.ferro.com/-- is a global producer of an array of
specialty chemicals including coatings, enamels, pigments,
plastic compounds, and specialty chemicals for use in industries
ranging from construction, pharmaceuticals and
telecommunications.  Ferro operates through the following five
primary business segments: Performance Coatings, Electronic
Materials, Color and Performance Glass Materials, Polymer
Additives, and Specialty Plastics.  Revenues were US$2 billion
for the FYE ended Dec. 31, 2006.

Ferro Corp. has global locations in Argentina, Australia,
Belgium, Brazil, China, among others.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
May 16, 2007, Moody's Investors Service assigned a B1 corporate
family rating to Ferro Corporation.  Moody's also assigned a B1
rating to the company's US$200 million senior secured notes
(issued as unsecured notes in 2001) due in January 2009 and an
SGL-3 speculative grade liquidity rating.


KONINKLIJKE AHOLD: Posts Preliminary Second Quarter 2007 Results
----------------------------------------------------------------
Koninklijke Ahold N.V. formerly Royal Ahold reported consolidated
net sales of EUR6.6 billion for the second quarter ending
July 15, 2007.

Compared to the second quarter of 2006, net sales increased by
2% and increased by 5.6% at constant exchange rates.  Market
conditions in both the United States and the Netherlands were
favorable.  Price investments related to the further roll-out of
the Value Improvement Program, launched in September 2006 at
Stop & Shop and Giant-Landover, will continue to impact margins.

Sales performance

Stop & Shop/Giant-Landover

   -- Net sales increased 1.9% to US$3.9 billion.

   -- Identical sales increased 1.1% at Stop & Shop (0.6%
      excluding gasoline net sales) and decreased 1% at Giant-
      Landover.

   -- Comparable sales increased 1.7% at Stop & Shop and
      decreased 0.8% at Giant-Landover.

Giant-Carlisle

   -- Net sales increased 13.7% to US$1 billion, due in part to
      the acquisition of the Clemens Markets stores in the
      fourth quarter of 2006.

   -- Identical sales increased 2.7% (2.6% excluding gasoline
      net sales).

   -- Comparable sales increased 4.4%.

Albert Heijn

   -- Net sales increased 10.3% to EUR1.8 billion, due in part
      to the acquisition of the Konmar stores in the fourth
      quarter of 2006.

   -- Net sales at Albert Heijn supermarkets increased 10.6% to
      EUR1.7 billion.

   -- Identical sales at Albert Heijn supermarkets increased
      6.2%.

Albert/Hypernova (Czech Republic and Slovakia)

   -- Net sales increased 10.7% to EUR342 million (9.4% at
      constant exchange rates).

   -- Identical sales increased 6.5%.

Schuitema

   -- Net sales increased 0.5% to EUR771 million.

   -- Identical sales decreased 0.6%.

Unconsolidated joint venture - ICA

   -- Net sales increased 22.4% to EUR2.2 billion, largely
      reflecting ICA's acquisition of the full ownership of Rimi
      Baltic AB from December 2006.  At constant exchange rates,
      net sales increased 23.1%.

On Nov. 6, 2006, Ahold disclosed its intention to divest U.S.
Foodservice, its retail activities in Slovakia and Poland, the
remaining Tops operations in New York and Pennsylvania, and its
stake in JMR. Poland, Tops, U.S. Foodservice and JMR are
classified as discontinued operations.  On July 2 and 3, 2007,
Ahold completed the sale of its Polish retail and U.S.
Foodservice operations, respectively.

The net sales figures presented in this trading statement are
preliminary and unaudited.

                         About Ahold

Headquartered in Amsterdam, Koninklijke Ahold N.V. (fka Royal
Ahold) -- http://www.ahold.com/-- retails food through
supermarkets, hypermarkets and discount stores in North and
South America, Europe.  It has operations in Argentina.  The
company's chain stores include Stop & Shop, Giant, TOPS, Albert
Heijn and Bompreco.  Ahold also supplies food to restaurants,
hotels, healthcare institutions, government facilities,
universities, stadiums, and caterers.

                        *     *     *

As reported on May 11, 2007, Moody's Investors Service placed
the Ba1 Corporate Family Rating and the Ba1 Senior Unsecured
Long-Term Rating of Koninklijke Ahold N.V. on review for
possible upgrade.

The action follows the company's recent announcement that it has
agreed to the disposal of its U.S. Foodservice business to
private equity funds for US$7.1 billion.

As reported on May 7, 2007, Fitch Ratings upgraded the Issuer
Default and senior unsecured ratings of Royal Ahold N.V. (nka
Koninklijke Ahold N.V.) to 'BB+' from 'BB'.  The Outlook on the
Issuer Default rating remains Positive.  Its Short-term rating
is affirmed at 'B'.


NORTHWEST AIRLINES: Next Periodic Distribution Date Is Oct. 1
-------------------------------------------------------------
Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP,
in New York, informs Judge Gropper of the U.S. Bankruptcy Court
for the Southern District of New York that on May 31, 2007,
Northwest Airlines Corp. made an initial distribution to the
applicable agent or recordholder for individual holders of
applicable allowed claims of:

  * the new common stock for distribution to creditors allocable
    to Class 1D;

  * the new common stock for distribution to creditors with a
    guaranty allocable to Class 1D; and

  * the new common stock for distribution pursuant to rights
    offering purchased.

Pursuant to the Debtors' First Amended Joint and Consolidated
Plan of Reorganization, the Debtors did not make a distribution
on July 16, 2007, because at least 2% of the shares in the
distribution reserve were not currently available for
distribution, Mr. Petrick explains.

Mr. Petrick states that catch-up distributions were set instead
for July 16, to parties holding Allowed Claims -- that became
Allowed after the Initial Distribution Date -- will be made.

The next Periodic Distribution Date is October 1, 2007.

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 $14.4
billion in total assets and $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.

(Northwest Airlines Bankruptcy News, Issue No. 76; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)

                        *     *     *

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.  S&P said 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.


TECNAT SA: Seeks Bankruptcy Approval from Buenos Aires Court
------------------------------------------------------------
The National Commercial Court of First Instance in Buenos Aires
is studying the merits of Tecnat S.A.'s request to enter
bankruptcy protection.

Tecnat filed a "Quiebra Decretada" petition following cessation
of debt payments.

The petition, once approved by the court, will transfer control
of the company's assets to a court-appointed trustee who will
supervise the liquidation proceedings.

The debtor can be reached at:

         Tecnat S.A.
         Malabia 460
         Buenos Aires, Argentina


TECNIC LIMP: Proofs of Claim Verification Is Until Oct. 10
----------------------------------------------------------
Estudio Stolkiner y Asociados, the court-appointed trustee for
Tecnic Limp SA's reorganization proceeding, verifies creditors'
proofs of claim until Oct. 10, 2007.

Estudio Stolkiner will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 8 in Buenos Aires, with the assistance of
Clerk No. 15, 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 Tecnic Limp 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 Tecnic Limp's
accounting and banking records will be submitted in court.

La Nacion didn't state the reports submission deadlines.

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

Estudio Stolkiner is also in charge of administering El Oro's
assets under court supervision and will take part in their
disposal to the extent established by law.

The debtor can be reached at:

         Tecnic Limp SA
         Laguna 761
         Buenos Aires, Argentina

The trustee can be reached at:

         Estudio Stolkiner y Asociados
         Avenida Cordoba 1367
         Buenos Aires, Argentina


TEXTIL UNO: Proofs of Claim Verification Deadline Is Sept. 12
-------------------------------------------------------------
Miguel Pellerero Herrero, the court-appointed trustee for Textil
Uno SRL's bankruptcy proceeding will verify creditors' proofs of
claim Sept. 12, 2007.

Mr. Herrero will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 20 in Buenos Aires, with the assistance of Clerk
No. 40, 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 Textil Uno 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 Textil Uno's
accounting and banking records will be submitted in court.

La Nacion didn't state the reports submission deadlines.

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

The debtor can be reached at:

          Textil Uno SRL
          Padre Montes Carballo 1626
          Buenos Aires, Argentina

The trustee can be reached at:

          Miguel Pellerero Herrero
          H. Yrigoyen 1349
          Buenos Aires, Argentina




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


METROPOLITAN BANK: First-Half Net Profit Up 34.3% to PHP3.7BB
-------------------------------------------------------------
Metropolitan Bank and Trust Co. reported a consolidated net
income of PHP3.7 billion in the first six months of 2007, up
34.3% from the PHP2.75-billion net profit it recorded in the
same period last year, the Philippine Star reports.

The Star notes that Metrobank said in a statement that its net
interest income improved 14.8% to PHP10.54 billion during the
first half.

Metrobank's favorable performance was attributed to a productive
mix of low cost deposits, higher trading gains and improved fee
income, The Star cites Metrobank Executive Vice President and
Comptroller Joshua E. Naing as saying.

Moreover, the Manila Bulletin relates, the bank's income
performance was further boosted by gains from securities
trading, with non-interest income contributing to PHP7.6 billion
in revenues for the first semester of the year.  This accounted
for over 40% of the revenue base.

Metrobank earlier reported that its consolidated total assets
reached PHP664.1 billion as of June 30, 2007, up 12% from the
figure it recorded as of end-June last year, The Star recounts.

The report adds that consolidated total deposits likewise
increased by another PHP11.2 billion to hit PHP503.3 billion,
while total net loans stood at PHP266.7 billion at the end of
June 2007.

                       About Metrobank

Metropolitan Bank and Trust Company --
http://www.metrobank.com.ph/-- is the flagship company of the
Metrobank Group.  Metrobank provides a host of deposit, savings,
and loan products as well as electronic banking services like
internet banking, mobile banking, and phone banking, as well as
its huge ATM network.  Metrobank is also the leading provider of
trade finance in the country, and its overseas branch network
has enabled it to service the fund remittances of Filipino
overseas contract workers.

The bank has 583 local branches and 35 international branches
and offices located in Taiwan, China, Japan, Korea, Guam, United
States, Hong Kong, Singapore, Bahamas, and in Europe.

                        *     *     *

The Troubled Company Reporter-Asia Pacific reported on
Nov. 6, 2006, that Moody's Investors Service revised the outlook
of Metropolitan Bank & Trust Co.'s foreign currency long-term
deposit rating of B1 and foreign currency subordinated debt
rating of Ba3 from negative to stable.

The outlooks for Metropolitan Bank's foreign currency Not-Prime
short-term deposit rating and bank financial strength rating of
D remain stable.

On March 3, 2006, the TCR-AP reported that Standard and Poor's
Rating Service assigned a CCC+ rating on Metrobank's US$125-
million non-cumulative capital securities, whereas Moody's
Investors Service Rating Agency issued a B- rating on the same
capital instruments.

On Sept. 21, 2006, the TCR-AP reported that Fitch Ratings
upgraded Metrobank's Individual rating to 'D' from 'D/E'.  All
the bank's other ratings were affirmed:

   * Long-term Issuer Default rating 'BB-' -- with a stable
     Outlook,

   * Short-term rating 'B,'

   * Support rating '3.




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


CRIMEA INC: Proofs of Claim Must be Filed by Aug. 22
----------------------------------------------------
Crimea Inc.'s creditors are given until Aug. 22, 2007, to prove
their claims to Mr. Elvon Clarke, the company's liquidator, or
be excluded from receiving any distribution or payment.

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

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

The liquidator can be reached at:

        Mr. Elvon Clarke
        20 Victoria Street
        Hamilton, Bermuda HM11


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

          20 Victoria Street
          Hamilton, Bermuda HM11

These agendas will be taken during the meeting:

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

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

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

The liquidator can be reached at:

          Mr. Elvon Clarke
          20 Victoria Street
          Hamilton, Bermuda HM11


J.P. MORGAN: Proofs of Claim Filing Ends Today
----------------------------------------------
J.P. Morgan Corsair II Capital Partners Bermuda Ltd.'s creditors
are given until Aug. 10, 2007, to prove their claims to Robin J.
Mayor, 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.

J.P. Morgan's shareholders agreed on July 25, 2007, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.

The liquidator can be reached at:

         Robin J. Mayor
         Clarendon House
         Church Street, Hamilton
         Bermuda


SPECTRUM (BERMUDA): Proofs of Claim Filing Is Until Today
---------------------------------------------------------
Spectrum (Bermuda) IV Ltd.'s creditors are given until
Aug. 10, 2007, to prove their claims to Robin J. Mayor, 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.

Spectrum's shareholders agreed on July 26, 2007, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.

The liquidator can be reached at:

         Robin J. Mayor
         Clarendon House
         Church Street, Hamilton
         Bermuda




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


ALERIS INTERNATIONAL: Names Joseph Mallak as Sr. Vice President
---------------------------------------------------------------
Aleris International Inc. has appointed Joseph M. Mallak, Senior
Vice President, Finance, Chief Accounting Officer and
Controller.

Bob Holian, who has been serving in this role and has also been
leading the implementation of the Swiss CE structure in Europe,
will continue to work full time on the completion of this major
initiative for the company.

Mr. Mallak has over twenty years of finance and accounting
experience in private and public US and international
manufacturing organizations.  In his most recent role,
Mr. Mallak was a Managing Director for The Reserve Group, a
private equity firm based in Akron, Ohio, where he led the
strategic repositioning and restructuring of several portfolio
companies.

Prior to joining The Reserve Group, Mr. Mallak served as Vice
President, Chief Financial Officer & Treasurer of Stoneridge
Inc. (NYSE; SRI), a publicly traded automotive engineered
products company.  Prior to Stoneridge, Mr. Mallak served as
Vice President and CFO for a global Textron division.  He began
his career with the Ford Motor Company.  "Joe's demonstrated
track record in a wide array of leadership roles in accounting,
finance, and mergers and acquisitions will be a great asset in
his new role with Aleris", said Mike Friday, Executive Vice
President and Chief Financial Officer.

Headquartered in Beachwood, Ohio, Aleris International Inc.
(NYSE: ARS) -- http://www.aleris.com/-- manufactures rolled
aluminum products and offers aluminum recycling and the
production of specification alloys.  The company also
manufactures value-added zinc products that include zinc oxide,
zinc dust and zinc metal.  The Company operates 42 production
facilities in the United States, Brazil, Germany, Mexico and
Wales, and employs approximately 4,200 employees.

                        *     *     *

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


BANCO NACIONAL: Approves BRL35-Million Loan to Coopercentral
------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social aka BNDES
approved financing of BRL35 million for the Cooperativa Central
Oeste Catarinense [Coopercentral] to implement an industry of
milk products with processing capacity of 600 thousand liters of
milk per day in the municipality of Pinhalzinho [State of Santa
Catarina].  The financing, approved under the ambit of the
Cooperative Development Program for the Addition of Value to
Farming Production [Prodecoop], will be transferred by the
Regional Bank of Development of the Extreme South [BRDE].  The
total investment is of BRL68.1 million.  After its
implementation, the project will likely generate 160 direct job
posts.

The new industrial unit, with high technological and sanitary
standard will provide assistance to the requisites for the
carrying out of exportation to the entire globe.  All the milk
to be processed will be supplied by ten out of the 17
cooperatives affiliated to the Coopercentral.  With the
beginning operation of the industrial plant of Pinhalzinho, the
industrialization process of milk will no longer be outsourced.
Thus, besides the reduction of casts, there will be an
improvement in the standardization of products.  Given the
importance of the milk basin of the State of Santa Catarina,
Sebrae is structuring the Local Productive Arrangement of milk
and milk derivatives of the West of the State in partnership
with Coopercentral and two other cooperatives of the region.
The State of Santa Catarina, one of the largest national
producers of milk, with 1.5 billion of liters per year, is
recognized by the World Animal Health Organization as a free
mouth and foot disease area, without need of vaccination.

Coopercentral is one of the largest industrial conglomerates of
Brazil, with 17 affiliated cooperatives, gathering approximately
78 thousand associated rural producers and with the generation
of approximately 19 thousand direct jobs.  More than 90% of the
members are mini and small producers, with areas up to 50
hectares.

The cooperative operates within the national and international
markets with the Aurora brand and sells various farming and
cattle raising produces: grains, seeds and industrialized
products (special poultry and swine cuts, milk and rations).

The industrial complex is formed by nine swine unites, given
that six are located in the State of Santa Catarina, two in the
State of Rio Grande do Sul and one in the State of Mato Grosso
do Sul.  The industrial plants focused on poultry, which
total 3, and the four ration producing factories are located in
the State of Santa Catarina and in Rio Grande do Sul.
Currently, Coopercentral industrialized approximately 14 million
liters of milk per month in five outsourced producing units.
All the milk is supplied by their associates and transformed
into cheese, milk drinks, ricotta cheese, milk cream, whole UHT
milk and skin milk and powder milk.

                      About Banco Nacional

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

                        *     *     *

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


BANCO NACIONAL: To Supervise Brasil Telecom-Oi Merger
-----------------------------------------------------
The Brazilian government has appointed Banco Nacional de
Desenvolvimento Economico e Social's president Luciano Coutinho
to be responsible for the financial engineering of a possible
merger between fixed line telecoms operators Oi and Brasil
Telecom, news daily Valor Economico reports.

According to Valor Economico, Mr. Coutinho will be responsible
for the financial aspects of forming a national telecoms firm.

Business News Americas relates that Mr. Coutinho has experience
in the telecoms sector, having set up the consultancy firm LCA
Consultores.

BNamericas notes that the presidents of Oi and Brasil Telecom
met with Mr. Countinho to discuss an agreement.

Investors in the two firms wouldn't be a problem.  Citigroup and
Opportunity Bank are allegedly interested in Brasil Telecom,
while GP Investimentos pension fund manager Fiago Participacoes
and Opportunity Bank are interested in investing in Oi, Valor
Economico states.

As reported in the Troubled Company Reporter-Latin America on
Aug. 6, 2007, Brazil's Communications Minister Helio Costa said
that the government would create an inter-ministerial commission
to analyze the feasibility of merging Oi and Brasil Telecom.

                          About Oi

Oi is a wireless unit of Telemar Norte Leste Participacoes,
which is a provider of telecommunication services in South
America.  Oi provides Telemar Norte's mobile services.  It has
acquired data transmission services provider Pegasus.

                     About Brasil Telecom

Headquartered in Brasilia, Brazil, Brasil Telecom Participacoes
SA -- http://www.brasiltelecom.com.br-- is a holding company
that conducts substantially all of its operations through its
wholly owned subsidiary, Brasil Telecom SA.  The fixed-line
telecommunications services offered to the company's customers
include local services, including all calls that originate and
terminate within a single local area in the region, as well as
installation, monthly subscription, measured services, public
telephones and supplemental local services; intra-regional
long-distance services, which include intrastate and interstate
calls; interregional and international long-distance services;
network services, including interconnection and leasing; data
transmission services; wireless services, and other services.

                     About Banco Nacional

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 SCHAHIN: Obtains US$40-Million Financing from IDB
-------------------------------------------------------
The Inter-American Development Bank has approved a US$40 million
financing to Banco Schahin, a commercial bank in Brazil, to
increase its consumer financing and corporate credit portfolio
to expand access to the international financial markets.

The IDB financing will include an "A-loan" of up to US$20
million from the Bank's ordinary capital and a syndicated "B-
loan" of approximately US$20 million, consisting of resources
from financial institutions that subscribe participation
agreements with the IDB.

"The loan will enable Schahin to expand its activity in the
fastest growing consumer finance sector in Brazil, the paycheck
deductible lending, particularly to public employees and the
Brazilian National Institute for Social Security retirees, while
at the same time support its corporate credit portfolio
primarily composed of small and medium-sized enterprises," said
IDB team leader Edson Mori.  "This project will help build a
more competitive middle banking market."

The volume of consumer finance has increased substantially in
Brazil over the last two years due to improvements in the
macroeconomic environment such as lower inflation, lower
unemployment since 2004 and a reduction in interest rates.  The
consumer finance sector has grown 25 percent in the last year
with remarkable growth in the personal loan and vehicle
financing modalities

Banco Schahin is a privately owned commercial bank specialized
in consumer and commercial financing.  It was established in
1989 with headquarters in Sao Paulo.  Schahin maintains an
extensive network of bank correspondents and sales points, which
have enabled it to become a significant player in the payroll
deductible lending to public sector employees and consumer
financing.

Banco Schahin is headquartered in Sao Paulo, Brazil.  As of
March 31, 2007, the bank had R$1.544 billion (US$703.4billion)
in total assets and R$202.1 million (U$92.1 million) in
shareholders' equity.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 26, 2007, Standard & Poor's Ratings Services affirmed its
'B/B' counterparty credit rating on Banco Schahin S.A. and
removed the rating from CreditWatch Positive, where it was
placed June 11, 2007.  S&P said the outlook is stable.

As reported in the Troubled Company Reporter-Latin America on
May 29, 2007, Moody's Investors Service assigned a Ba3 long-term
foreign currency rating on Banco Schahin S.A.'s US$300 million
Global Euro Medium-term Note Program, with a stable outlook.

Moody's also planned to assign a (P)Ba3 long-term foreign
currency rating to the senior unsecured notes in the amount of
US$100 million to be issued under the program.


BRASIL TELECOM: Banco Nacional Overseeing Merger with Oi
--------------------------------------------------------
The Brazilian government has appointed Banco Nacional de
Desenvolvimento Economico e Social's president Luciano Coutinho
to be responsible for the financial engineering of a possible
merger between fixed line telecoms operators Brasil Telecom and
Oi, news daily Valor Economico reports.

According to Valor Economico, Mr. Coutinho will be responsible
for the financial aspects of forming a national telecoms firm.

Business News Americas relates that Mr. Coutinho has experience
in the telecoms sector, having set up the consultancy firm LCA
Consultores.

BNamericas notes that the presidents of Oi and Brasil Telecom
met with Mr. Countinho to discuss an agreement.

Investors in the two firms wouldn't be a problem.  Citigroup and
Opportunity Bank are allegedly interested in Brasil Telecom,
while GP Investimentos pension fund manager Fiago Participacoes
and Opportunity Bank are interested in investing in Oi, Valor
Economico states.

As reported in the Troubled Company Reporter-Latin America on
Aug. 6, 2007, Brazil's Communications Minister Helio Costa said
that the government would create an inter-ministerial commission
to analyze the feasibility of merging Oi and Brasil Telecom.

                          About Oi

Oi is a wireless unit of Telemar Norte Leste Participacoes,
which is a provider of telecommunication services in South
America.  Oi provides Telemar Norte's mobile services.  It has
acquired data transmission services provider Pegasus.

                     About Banco Nacional

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.

                     About Brasil Telecom

Headquartered in Brasilia, Brazil, Brasil Telecom Participacoes
SA -- http://www.brasiltelecom.com.br-- is a holding company
that conducts substantially all of its operations through its
wholly owned subsidiary, Brasil Telecom SA.  The fixed-line
telecommunications services offered to the company's customers
include local services, including all calls that originate and
terminate within a single local area in the region, as well as
installation, monthly subscription, measured services, public
telephones and supplemental local services; intra-regional
long-distance services, which include intrastate and interstate
calls; interregional and international long-distance services;
network services, including interconnection and leasing; data
transmission services; wireless services, and other services.

                        *     *     *

Brasil Telecom Participacoes' local currency long-term debt
carries Fitch's BB+ rating.

Moody's Investors Service placed a Ba1 local currency long-term
issuer rating on Brasil Telecom.


COMPANHIA SIDERURGICA: Delays Casa de Pedra Expansion Works
-----------------------------------------------------------
Companhia Siderurgica Nacional has postponed the start of
expansion works for the Casa de Pedra iron ore mine, Business
News Americas reports, citing Deutsche Bank.

Published reports say that Companhia Siderurgica is conducting
works to initially boost capacity at the Minas Gerais mine to 21
million tons per year from 16 million tons a year.

Deutsche Bank told BNamericas that the startup of operations was
moved to April to May 2008 from February 2008.

Deutsche Bank said in a report, "Capex plans have been revised
upward by 50% to US$2.25 billion from US$1.5 billion.  CSN
[Companhia Siderurgica] has also increased [eventual] iron ore
production plans to 60 million tons per year by 2011 from 53
million tons per year previously."

According to Deutsche Bank's report, an initial public offering
for Casa de Pedra "could optimistically be as early as the
fourth quarter 2007."

BNamericas notes that an up to 25% stake in Casa de Pedra would
be sold to fund investment plans through 2011.

Companhia Siderurgica appointed investment bank Credit Suisse to
evaluate, structure and conduct the sale of a minority stake in
its mining projects.  The sale is subject to the successful
completion of Credit Suisse's studies.  It would occur through a
public offering of securities and sale to a strategic investor,
BNamericas states.

                     About Deutsche Bank

Deutsche Bank AG offers investment, financial and related
products and services to private individuals, corporate entities
and institutional clients around the world.  It has three
divisions: Corporate and Investment Bank, which comprises
Corporate Banking and Securities and Global Transaction Banking
that serves large and medium-sized corporations, financial
institutions, public sector and multinational organizations;
Private Clients and Asset Management, which comprises Asset and
Wealth Management and Private and Business Clients and serves
retail and small corporate, as well as affluent and wealthy
clients and provides asset management services to retail and
institutional clients, and Corporate Investments, managing the
majority of Deutsche Bank's alternative assets portfolio and
other debt and equity positions.

                 About Companhia Siderurgica

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

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
July 26, 2007, Standard & Poor's Ratings Services affirmed its
'BB' long-term corporate credit rating on Brazil-based steel
maker Companhia Siderurgica Nacional.  S&P said the outlook is
stable.


EMI GROUP: Total Revenue at Constant Currency Down 5.1% in 2007
---------------------------------------------------------------
EMI Group PLC issued its first interim management statement as
required by the disclosure rules and transparency rules of the
Financial Services Authority.

EMI said that for the first quarter of the financial year 2007:

   -- EMI Group total revenue at constant currency declined by
      5.1%, reflecting the market conditions experienced in the
      recorded music market;

   -- EMI Music revenue at constant currency declined by 13.4%
      due to the difficult market conditions and EMI's light
      release schedule in the quarter when the restructuring
      program was also being implemented.  Digital revenues
      increased by 26.0%, while physical revenues declined by
      19.8%;

   -- EMI Music Publishing revenue at constant currency
      increased by 11.9%.  This was partly as a result of
      litigation settlements, although mechanical revenues are
      holding up well in the face of significant declines in the
      recorded music markets and synchronization revenues have
      had a strong start to the year.  Digital revenues
      increased by 13.2%, while physical revenues increased by
      11.9%; and

   -- the cost savings from the previously announced
      restructuring programs are being delivered on budget.

During the quarter, EMI completed the acquisition of the 45%
shareholding in Toshiba-EMI Limited previously held by Toshiba
Corporation for a total cash consideration of JPY21 billion
(around GBP93 million) as a result of which EMI now owns 100% of
TOEMI.  TOEMI has been renamed EMI Music Japan.

In late May 2007, iTunes launched EMI's DRM free products on
iTunes plus.  Early revenue indications for this initiative are
encouraging.

It was announced on May 21, 2007 that the boards of directors of
Maltby Limited and EMI had reached agreement on the terms of a
recommended cash offer by Maltby to acquire the whole of the
issued and to be issued share capital of EMI.  The Offer
Document was posted to EMI Shareholders on May 30, 2007.

On Aug. 1 2007, the board of directors of Maltby announced that
the Offer had become unconditional as to acceptances and will
remain open until further notice, and that the Conditions set
out in paragraphs 1(b) and 1(d) of Part A of Appendix I to the
Offer Document had already been satisfied.  The Offer remains
subject to the further Conditions set out in paragraphs 1(c) and
1(e) to 1(i) of Part A of Appendix I to the Offer Document.

                         About EMI

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

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

The company issued two profit warnings since January 2007.


EMI GROUP: Moody's Cuts Corp. Family & Sr. Debt Ratings to B1
-------------------------------------------------------------
Moody's Investors Service 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 GBP3.2
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 signaled 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 focused 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.


FORD MOTOR: Recalls 3.6 Million Vehicles to Fix Cruise Control
--------------------------------------------------------------
Ford Motor Company is conducting a voluntary safety recall
involving speed control deactivation switch systems in 3.6
million vehicles.

The service action involves the installation of a fused wiring
harness into the speed control electrical circuit, or the
replacement of the deactivation switch if it is found to be
leaking.  This is a quick repair, and will be performed on
vehicles built between 1992 and 2003.

Ford dealers will provide this service to all affected vehicles
at no charge to the customers.  The company has a sufficient
supply of parts to service the affected trucks.  The supply of
parts to service the affected cars is expected to be available
in early October.  Owners of all affected vehicles will be
notified by mail.

While these vehicles are not subject to the systems interaction
issues affecting vehicles in the prior recall populations, Ford
is taking this action to address continued customer concerns
about the potential for fires in their vehicles.  The company
cannot be confident in the long-term durability of the speed
control deactivation switches.

At no charge to customers, Ford or Lincoln/Mercury Dealers will
inspect the speed control deactivation switch and install a
fused wiring harness between the current speed control wiring
and the deactivation switch or, if necessary, replace the
deactivation switch.  The harness acts to protect the switch in
the rare event of increased electrical current flow through the
switch.

Owners of trucks that are affected by this recall will be
instructed to take their vehicles to a Ford or Lincoln/Mercury
dealership for repairs.  Owners of cars that are affected by
this recall will be directed to bring their vehicles into their
dealership to have the speed control disconnected, as an interim
repair, until parts are available to perform the final repair in
early October, which is the same as the repair for trucks.

                     About Ford Motor Co.

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

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

                        *     *     *

As reported in the Troubled Company Reporter on July 30, 2007,
Moody's Investors Service said that the performance of Ford
Motor Company's global automotive operations for the second
quarter of 2007 was significantly stronger than the previous
year and better than street expectations.

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

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

In June 2007, S&P raised the Issue Rating on Ford's senior
secured credit facilities to B+ from B.


FORD MOTOR: Wants Tentative Land Rover & Jaguar Deal by Sept. 30
----------------------------------------------------------------
Ford Motor Company's financial and legal advisers have begun
preparing information to facilitate due diligence for potential
bidders of its Land Rover and Jaguar marques as the company
hopes to reach a tentative deal by Sept. 30, 2007, the
International Herald Tribune reports, quoting people with direct
knowledge of the process.

The TCR-Europe reported on July 27, 2007, that bidders,
including private equity groups Ripplewood Holdings, One Equity
Partners, TPG Capital, and Cerberus Capital Management, as well
as India's Tata Motors and Mahindra & Mahindra had submitted
indicative offers for Land Rover and Jaguar.  Ford has hired
Goldman Sachs, HSBC and Morgan Stanley to act as advisors.  The
auto maker plans to let prospective bidders begin due diligence
on its Jaguar and Land Rover brands this month.

According to IHT's sources, the company also hopes to sell Volvo
by the end of the year.  The company revealed last month that it
had begun a "strategic review" of Volvo -- its first public
acknowledgment that it wanted to shed the Swedish carmaker,
which it bought in 1999, IHT observes.  Bidders for Volvo have
yet to emerge as the sale process is still in its early stages,
although reports claim BMW might be interested in the brand.

                      About Ford Motor Co.

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

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

                        *     *     *

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

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

                        *     *     *

As reported in the Troubled Company Reporter on July 30, 2007,
Moody's Investors Service said that the performance of Ford
Motor Company's global automotive operations for the second
quarter of 2007 was significantly stronger than the previous
year and better than street expectations.

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

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

In June 2007, S&P raised the Issue Rating on Ford's senior
secured credit facilities to B+ from B.


FORD MOTOR: June 30 Balance Sheet Upside-Down by US$1.9 Billion
---------------------------------------------------------------
Ford Motor Company reported financial results for the quarter
ended June 30, 2007.  At June 30, 2007, the company's balance
sheet showed total assets of US$279.2 billion, total liabilities
of US$279.9 billion, and minority interests of US$1.2 billion,
resulting in a US$1.9 billion stockholders' deficit.

The company reported US$750 million net income of US$44.2
billion total sales for the quarter ended June 30, 2007,
compared with US$317 million net loss of US$41.8 billion total
sales for the same quarter last year.

At June 30, 2007, Ford's Automotive sector had total debt of
about US$30 billion, unchanged from Dec. 31, 2006.  At
June 30, 2007, the company's Automotive sector had net cash of
US$7.4 billion, compared with US$3.9 billion at the end of 2006.

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

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

                        *     *     *

As reported in the Troubled Company Reporter on July 30, 2007,
Moody's Investors Service said that the performance of Ford
Motor Company's global automotive operations for the second
quarter of 2007 was significantly stronger than the previous
year and better than street expectations.

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

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

In June 2007, S&P raised the Issue Rating on Ford's senior
secured credit facilities to B+ from B.


GERDAU AMERISTEEL: Earns US$139.1 Million in 2007 First Quarter
---------------------------------------------------------------
Gerdau Ameristeel Corporation reported net income of US$139.1
million on net sales of US$1.3 billion for the three months
ended June 30, 2007, compared to net income of US$127.6 million
on net sales of US$1.2 billion for the same period in 2006.  For
the six months ended June 30, 2007, Gerdau Ameristeel reported
net income of US$272.7 million on net sales of US$2.7 billion,
compared to net income of US$216.5 million on net sales of
US$2.3 billion for the six months ended June 30, 2006.  EBITDA
was US$244.3 million for the three months ended June 30, 2007
and US$489.1 million for the six months ended June 30, 2007,
compared to EBITDA of US$222.1 million for the three months
ended June 30, 2006, and US$395.5 million for the six months
ended June 30, 2006.

Included in selling and administrative expense for the three and
six months ended June 30, 2007 is a non-cash pretax expense of
US$9.2 million and US$18.0 million, respectively, to mark to
market outstanding stock appreciation rights and expenses
associated with other executive compensation agreements compared
to a non-cash pretax expense of US$5.7 million and US$32.1
million, respectively for the three and six months ended
June 30, 2006.

On June 17, 2007, Pacific Coast Steel, a majority owned joint
venture of the company completed the acquisition of the assets
of Valley Placers, Inc., a reinforcing steel contractor in Las
Vegas, Nevada.  In addition to contracting activities, VPI
operates a steel fabrication facility and retail construction
supply business in Las Vegas.  VPI currently employs more than
110 field ironworkers and specializes in smaller commercial,
retail and public works projects.

On July 10, 2007, the company announced that it signed a
definitive merger agreement to acquire Chaparral Steel Company,
for approximately US$4.2 billion in cash.  Chaparral is the
second largest producer of structural steel products in North
America and also a major producer of steel bar products.  It
operates two mini-mills, one located in Midlothian, Texas, and
the other located in Dinwiddie County, Virginia.  Chaparral has
approximately 1,400 employees and an annual installed capacity
of 2.6 million tons.  The transaction, which is subject to
customary closing conditions including the approval of
Chaparral's shareholders and regulatory approvals, is expected
to close before the end of the year.  The company has secured
financing commitments of US$4.6 billion to complete the
transaction.

The company reached an agreement with the United Steelworkers
Union at the Joliet, Illinois mill.  The contract is effective
July 22, 2007 and expires July 22, 2011.

On Aug. 7, 2007, the Board of Directors approved a quarterly
dividend of US$0.02 (two US$ cents) per common share, payable
Sept. 7, 2007 to shareholders of record at the close of business
on Aug. 22, 2007.

Effective Jan. 1, 2007, the company adopted Financial Accounting
Standards Board (FASB) Staff Position # AUG-AIR-1, "Accounting
for Planned Major Maintenance Activities."  This guidance
specifically precludes the use of the previously acceptable
"accrue in advance" method of accounting for these activities.
In compliance with this new guidance, the company has
retroactively adjusted the Condensed Consolidated Statements of
Earnings for the three months and six months ended June 30, 2006
resulting in an increase in net income of US$1.7 million and
US$3.2 million, respectively.  Additionally, the company also
adjusted the Condensed Consolidated Balance Sheet and Condensed
Consolidated Statement of Changes in Shareholders' Equity for
the year ended Dec. 31, 2006 resulting in an increase in
shareholders' equity of US$1.3 million.

For the three months ended June 30, 2007, Gerdau Ameristeel's
income from operations was US$199.8 million and our share of the
income from operations of the 50% owned joint ventures was
US$15.0 million.  Based on 1.9 million tons of finished steel
shipped, the composite income from operations was US$113 per ton
for the three months ended June 30, 2007.  For the three months
ended June 30, 2006, Gerdau Ameristeel's income from operations
was US$165.1 million and our share of the income from operations
of the 50% owned joint ventures was US$34.0 million.  Based on
2.0 million tons of finished steel shipped, the composite income
from operations was US$100 per ton for the three months ended
June 30, 2006.

For the six months ended June 30, 2007, Gerdau Ameristeel's
income from operations was US$395.5 million and our share of the
income from operations of the 50% owned joint ventures was
US$33.1 million.  Based on 4.0 million tons of finished steel
shipped, the composite income from operations was US$108 per ton
for the six months ended June 30, 2007.  For the six months
ended June 30, 2006, Gerdau Ameristeel's income from operations
was US$283.1 million and our share of the income from operations
of the 50% owned joint ventures was US$63.3 million.  Based on
3.8 million tons of finished steel shipped, the composite income
from operations was US$91 per ton for the six months ended
June 30, 2006.

                        CEO Comments

Mario Longhi, President and CEO of Gerdau Ameristeel, said:
"We are very pleased with the results for the first six months
of 2007 and we are optimistic that the markets can remain solid
for the balance of the year.  Metal spreads in the second
quarter were at all time record highs and we believe we are well
positioned to continue to generate good cash flows from our
operations."

"We are excited about the strategic impact of our recently
announced acquisition of Chaparral Steel.  The acquisition
further expands our geographic footprint and solidifies our
position as a leader in the North American long products sector,
offering a full range of rebar, merchant, and structural
products.  We welcome the employees of Chaparral Steel to the
Gerdau Ameristeel team and look forward to developing and
effectively executing our integration plan, to share best
practices, and realize all synergy opportunities."

"We also applaud the US International Trade Commission's recent
ruling to continue anti-dumping duty orders on rebar imports
from seven countries including China.  A significant portion of
the US rebar market is serviced by imports - the decision from
the ITC ensures that the market will not be injured by illegally
dumped rebar from these countries."

Gerdau Ameristeel -- http://www.gerdauameristeel.com/-- (NYSE:
GNA; TSX:GNA.TO) is the second largest minimill steel producer
in North America with annual manufacturing capacity of over 9
million tons of mill finished steel products.  Through its
vertically integrated network of 17 minimills (including one
50%-owned joint venture minimill), 17 scrap recycling facilities
and 51 downstream operations (including seven joint venture
fabrication facilities), Gerdau Ameristeel serves customers
throughout North America.  The company's products are generally
sold to steel service centers, to steel fabricators, or directly
to original equipment manufacturers for use in a variety of
industries, including construction, automotive, mining, cellular
and electrical transmission, metal building manufacturing and
equipment manufacturing.  The company is a subsidiary of
Brazil's Gerdau SA.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
July 13, 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.

As reported in the Troubled Company Reporter-Latin America on
May 16, 2007, Standard & Poor's Ratings Services raised its
corporate credit rating on Tampa, Florida-based Gerdau
Ameristeel Corp. to 'BB+' from 'BB' and removed all ratings from
CreditWatch, where they were placed with positive implications
on Jan. 17, 2007.

S&P also raised its rating on the company's senior unsecured
debt to 'BB+' from 'BB'.  S&P said the outlook was stable.


HEXION SPECIALTY: Funds US$100 Million of Incremental Term Loans
----------------------------------------------------------------
Hexion Specialty Chemicals Inc. funded incremental term loans
under its second amended and restated credit agreement in the
aggregate amount of US$100 million in the form of new tranche
C-7 term loans.

The proceeds of the incremental term loans will be used to repay
revolving loans and for general corporate purposes.  The
Incremental Credit Facility will mature on May 5, 2013.

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

                        *     *     *

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


JAPAN AIRLINES: Revises Frequency Plan for 2007 Second Half
-----------------------------------------------------------
The Japan Airlines International Company, Limited, has decided
to revise its international passenger and cargo route and
frequency plan for the second half of FY2007.

JAL will strengthen its international passenger business
particularly on Asia routes by continuing to focus resources on
high profit, high growth routes where demand is strong, and by
improving products and services.  The airline is also adjusting
flight frequency and flight schedules to increase convenience
for customers outside of Japan using Narita as an international
hub for intra-Asia journeys and for journeys between, for
example, China and the USA.

From Oct. 28, 2007, JAL will start its first cargo operation to
Vietnam when the airline's third 767 freighter enters into
service.  In order to reduce costs, increase profitability and
strengthen its cargo network, JAL will also increase the total
number of flights per week the airline's three new more fuel
efficient 767 freighters are used on China and Southeast Asia
routes.

International Passenger

a) Flight Frequency

The airline will increase flight frequency on its Tokyo (Narita)
-- Guangzhou from 13 to 14 flights per week creating a double
daily service between the two cities.  The increase in frequency
will enable JAL to meet passenger demand not only between Japan
and China, but also from business passengers traveling between
the US and China using Narita as a convenient transit point.

Already announced on July 6, 2007, in response to a surge in the
number of Japanese companies setting up operations in India, JAL
will establish a daily service on its Tokyo (Narita)-New Delhi
route by increasing flight frequency from 5 to 7 flights per
week on October 28, 2007.  JAL currently offers 4 flights per
week on this route, which will increase to 5 flights per week
from October 1, 2007.

Due to high load factors, JAL will maintain in the second half
of FY2007 the Tokyo (Narita)-New York route flight frequency
increase it initiated in March 25, 2007, when the service was
increased from 10 to 13 flights per week.  Late night flights
departing from Narita for New York have been particularly
popular with passengers from Asia connecting via Tokyo to the
USA.

Flight frequency will be decreased on JAL's Tokyo (Narita)-Los
Angeles, Tokyo (Narita)-Paris, and Tokyo (Narita)-Hong Kong to
more accurately match the level of demand currently on these
routes.

b) Schedule Changes

JAL will change the flight schedules of two of its three daily
flights departing from Seoul to Tokyo (Narita) to earlier
departure times.  This will enable tourists from South Korea,
who are currently enjoying the benefits of a strong Korean won,
to connect more smoothly in Narita onto JAL flights serving such
Southeast Asia leisure destinations as Indonesia, Singapore and
Thailand.

c) Service Improvements

In FY2006, JAL will further extend the number of routes on which
aircraft are fitted with the popular JAL Shell Flat Seat.  From
Oct. 28, 2007, the award-wining seat will be available to
business class passengers traveling on JAL's daily services
between Tokyo (Narita)-New Delhi, and Nagoya-Bangkok.

d) Aircraft Change

From Oct. 28, 2007, passengers traveling on JAL's daily Fukuoka-
Shanghai flight will be able to enjoy an improved service when
one of the airline's state-of-the-art 737-800 starts operation
on this route.  On this more fuel-efficient, environment-
friendly aircraft, every seat is equipped with its own personal
in-flight entertainment system, and all business class seats and
most economy class seats will also have an AC power supply
suitable for personal computers.

d) International Charter

JAL plans to introduce two new charter flights in the second
half of FY2007.  The airline will inaugurate a regular charter
flight service between Haneda airport (Tokyo) and Hongqiao
International Airport (Shanghai) for the benefit of both
business and leisure travelers.

The airline will also operate for the first time on a seasonal
basis direct charter flights between Kansai (Osaka) and Siem
Reap in Cambodia for Japanese tourists wishing to visit the
country's many world heritage sites including Angkor Wat.  Other
Japan departures cities are also being considered.

Details of these charter flights, including start date, aircraft
type and flight frequency have yet to be decided.

e) International Passenger SH07 Changes

A full-text copy of the international route changes is available
for free at: http://www.jal.com/en/press/0001077/1077.html

International Cargo

a) Vietnam Freighter Service Inaugurated

From Oct. 28, 2007 JAL will start its first cargo operation to
Vietnam when the airline's third 767 freighter enters into
service.  JAL will introduce a new twice-weekly freighter
service using the new aircraft between Japan and Southeast Asia
routed Kansai (Osaka)-Bangkok-Ho Chi Minh-Kansai (Osaka).

b) Increased use of 767F on China and Southeast Asia routes

JAL will also increase the total number of flights per week the
airline's three new 767 freighters are used on China and
Southeast Asia routes.  The airline is increasing use of this
more fuel efficient aircraft as it gradually retires 747F-200
aircraft from its fleet, and in an effort to reduce costs,
increase profitability and strengthen its cargo network.  For
example, the number of flights the 767F will be used on China
routes will be increased from 14 to 17 flights per week.

c) Increase in Direct Europe Freighter Flights

Compared to the summer schedule JAL will increase from
Oct. 28, 2007, the number of direct freighter flights to
Amsterdam by one flight per week.

                    About Japan Airlines

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

                        *     *     *

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

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

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


MILACRON INC: Incurs US$100,000 Net Loss in Qtr. Ended June 30
--------------------------------------------------------------
Milacron Inc. posted a US$100,000 net loss for the second-
quarter ended June 30 against US$197 million in sales.  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.

The company has an office in South Korea, and joint ventures in
China and India.  In Europe, the company maintains operations in
Belgium, Germany, Italy, the Netherlands, Spain, and England.

                        *     *     *

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.


MRS LOGISTICA: Posts Record High Cargo Shipment in July 2007
------------------------------------------------------------
MRS Logistica said in its press release that figures for July
2007 indicate that the company has moved over 11 million tons of
cargo in a month, the first time in the firm's history.

Business News Americas relates that MRS Logistica, with the
concession to operate Sao Paulo, Rio de Janeiro and Minas Gerais
railway lines, transported some 11.3 million tons of goods in
July 2007.

According to BNamericas, the goods MRS Logistica shipped for
2007 so far totaled 70.3 million tons.

MRS Logistica head Julio Fontana told BNamericas that the
increased operations are due to investments in company
infrastructure.

"New locomotives have arrived and our fleet of wagons has also
expanded.  There have also been investments in the network, with
the construction of new shunting yards, new track and
investments in technology," Mr. Fontana commented to BNamericas.

The MRS consortium is a railway freight transport company
established in 1996 to operate approximately 1,700 kilometers of
track in the states of Minas Gerais, Rio de Janeiro e Sao Paulo.
MRS's rail network is also linked to the Central Atlantic,
Vitoria-Minas and Sao Paulo Railroads, offering intramodal
transportation options to the other parts of the country.  The
company mainly transports cargo for its principle shareholders.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
May 24, 2007, Standard & Poor's Ratings Services affirmed its
'BB' long-term corporate credit rating on Brazil-based railroad
company MRS Logistica S.A.  S&P revised the outlook to positive
from stable.


SANYO ELECTRIC: Invests THB466 Million in Thai Unit
---------------------------------------------------
Sanyo Electric Co., Ltd., is investing THB466 million to upgrade
its existing factory in Chachoengsao, Thailand, to become
Sanyo's first world production base outside Japan, reports
Pitsinee Jitpleecheep of Bangkok Post.

The report cites Tsutomu Morimoto, managing director of Sanyo
(Thailand) Co., as saying that the THB466 million will be used
for the installation of new machinery and the upgrade for the
manufacturing of a wider range of products, including freezers
and coolers for professional use for Sanyo's operations in China
and Japan.

Mr. Morimoto, writes Bangkok Post, added that products
manufactured at the Thailand factory will be exported to
different markets such as Asia, Europe and the Middle East and
will be sold locally to to modern retailers, bakeries and coffee
shops, especially professional refrigeration systems.

                     About Sanyo Electric

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

                        *     *     *

In March 2, 2007, Fitch Ratings placed SANYO Electric Co. Ltd.'s
BB+ long-term foreign and local currency issuer default and
senior unsecured ratings on rating watch negative.


XERIUM TECH: Paying US$0.1125 Per Share Dividend on Sept. 14
------------------------------------------------------------
Xerium Technologies Inc.'s Board of Directors, on Aug. 7, 2007,
declared a dividend of US$0.1125 per share of common stock
payable on Sept. 14, 2007 to shareholders of record as of the
close of business on Sept. 5, 2007.

Headquartered in Wesborough, Massachusetts, Xerium Technologies,
Inc. -- http://xerium.com/-- manufactures and supplies two
types of products used primarily in the production of paper:
clothing and roll covers.  The company operates under a variety
of brand names and owns a broad portfolio of patented and
proprietary technologies to provide customers with tailored
solutions and products, designed to optimize performance and
reduce operational costs.  With 35 manufacturing facilities in
15 countries, including Austria, Brazil and Japan, Xerium
Technologies has approximately 3,900 employees.

                        *     *     *

Moody's Investors Service changed the outlook on Xerium
Technologies, Inc.'s ratings to negative from stable, and
affirmed the company's corporate family rating at B1.  The
change in outlook to negative reflects Xerium's weaker than
expected operating performance primarily due to production
inefficiencies in North America and delays in achieving benefits
from cost reduction initiatives.  Moody's believes the impact of
these issues, coupled with a difficult pricing environment for
roll covers and to a lesser extent clothing products, will
continue to negatively affect operating performance over the
intermediate term.

Affirmed ratings are:

     * Corporate family rating; B1
     * Guaranteed senior secured term loan B; B1
     * Guaranteed senior secured revolving credit facility; B1


* BRAZIL: Gets US$120-Million Loan from IDB for Biofuel Project
---------------------------------------------------------------
Inter-American Development Bank's Board of Directors has
approved its first private sector financing for a bioenergy
project in Brazil for a total of US$120 million to Usina Moema
Acucar e Alcohol Ltda., a major sugar, ethanol and bio-energy
producer based in the State of Sao Paulo, that is operating in
one of the fastest growing industries in Brazil and worldwide.

This operation is part of IDB's initiative to promote the
structuring of senior debt financing for five Brazilian ethanol
production projects that will have a total cost of US$997
million.  These investments will contribute to Brazil's goal of
tripling annual ethanol production by 2020.

The IDB also supports the Brazilian government's goal of
becoming a global center of excellence for research and
development in biofuels.  The Bank is holding discussions with
senior Brazilian officials with a view to facilitating
technology transfer and technical assistance, so that other
countries in the region can benefit from Brazilian know-how.

"In past years, Moema's brisk growth was financed primarily by
short- and medium-term debt," said IDB team leader Leandro
Alves.  "Moema is now in the process of refinancing up to US$120
million of such debt through a financing package put together by
the IDB."

The package comprises an IDB loan of up to US$40 million from
the Bank's ordinary capital and $80 million of co-financing from
commercial banks.

"The transaction will help Moema increase the average life of
the debt being refinanced from approximately 10 months to 6.6
years," explained the other IDB team leader, Sylvia Larrea. "It
will therefore improve the company's debt profile towards one
more consistent with the long-term nature of its assets,
enhancing the sustainability of the company," added Ms. Larrea.

The operation will allow Moema to redirect funds currently used
to service short-term debt to fund its capital investment plan,
including projects to boost Moema's production of sugar, ethanol
and energy co-generation from biomass (bagasse).

IDB's private sector window serves as a catalyst, not only
enabling financing in the long tenors required by the company,
but also mobilizing private funds in the form of co-financings.
Required implementation of IDB's Environmental and Social
Management System ensures a good management of potential
environmental, social, health, safety, and labor impacts.

                        *     *     *

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

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

                        *     *     *

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




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


CATLEIA OIL: Will Hold Final Shareholders Meeting on Sept. 7
------------------------------------------------------------
Catleia Oil Company will hold its final shareholders meeting on
Sept. 7, 2007, at 10:30 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,

   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
         George Town, Grand Cayman KY1 9002
         Cayman Islands


CLEMATIS FINANCIAL: Sets Final Shareholders Meeting for Sept. 6
---------------------------------------------------------------
Clematis Financial Master Fund Ltd. will hold its final
shareholders meeting on Sept. 6, 2007, at:

          Boundary Hall, George Town
          Grand Cayman, Cayman Islands

These agendas will be taken during the meeting:

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

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

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

The liquidators can be reached at:

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


CLEMATIS FINANCIAL FUND: Final Shareholders Meeting on Sept. 6
--------------------------------------------------------------
Clematis Financial Fund Ltd. will hold its final shareholders
meeting on Sept. 6, 2007, at:

          Boundary Hall, George Town
          Grand Cayman, Cayman Islands

These agendas will be taken during the meeting:

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

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


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

The liquidators can be reached at:

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


CONTEL PAGE: Will Hold Final Shareholders Meeting on Sept. 7
------------------------------------------------------------
Contel Page International Inc. will hold its final shareholders
meeting on Sept. 7, 2007, at 10:00 a.m., at the office of the
company.

These agendas will be taken during the meeting:

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

   2) 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:

         David A.K. Walker
         Attention: Jodi Jones
         P.O. Box 258
         Grand Cayman KY1-1104
         Cayman Islands
         Tel: (345) 914 8694
         Fax: (345) 945 4237


CREDIT CARDS: Proofs of Claim Must be Filed by Sept. 6
------------------------------------------------------
Credit Cards Two creditors are given until Sept. 6, 2007, to
prove their claims to Kareem Robinson and Emile Small, 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.

Credit Cards' shareholders agreed on July 23, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

       Emile Small
       Maples Finance Limited
       P.O. Box 1093
       George Town, Grand Cayman
       Cayman Islands


CYGNUS ASSET: Sets Final Shareholders Meeting for Sept. 6
---------------------------------------------------------
Cygnus Asset Management Ltd. will hold its final shareholders
meeting on Sept. 6, 2007, at 10:00 a.m., at:

          P.O. Box 1234
          Queensgate House,
          South Church Street, Grand Cayman KY1-1108
          Cayman Islands

These agendas will be taken during the meeting:

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

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


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

The liquidator can be reached at:

         Ogier
         Attention: Angus Davison
         P.O. Box 1234
         Queensgate House,
         South Church Street, Grand Cayman KY1-1108
         Cayman Islands
         Tel: (345) 949 9876
         Fax: (345) 949 1986


FCT PACIFIC: Will Hold Final Shareholders Meeting on Sept. 6
------------------------------------------------------------
FCT Pacific Equities Ltd. will hold its final shareholders
meeting on Sept. 6, 2007, at:

          Boundary Hall, George Town
          Grand Cayman, Cayman Islands

These agendas will be taken during the meeting:

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

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

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

The liquidators can be reached at:

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


G-MAX 2002: Proofs of Claim Filing Deadline Is Sept. 6
------------------------------------------------------
G-MAX 2002 FL-A Ltd.'s creditors are given until Sept. 6, 2007,
to prove their claims to Helen Allen 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.

G-MAX 2002's shareholders agreed on July 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:

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


GRIFFIN (CAYMAN): Proofs of Claim Filing Ends on Sept. 6
--------------------------------------------------------
Griffin (Cayman Islands) LLC's creditors are given until
Sept. 6, 2007, to prove their claims to Joshua Grant, Jan
Neveril, James Bearden, James Conaway and Jean Pougnier, 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.

Griffin's shareholders agreed on July 11, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

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


GSO CALMET: Sets Final Shareholders Meeting for Sept. 7
-------------------------------------------------------
GSO Calmet Holdings (Cayman) Ltd. will hold its final
shareholders meeting on Sept. 7, 2007, at 9:00 a.m., at the
office of the company.

These agendas will be taken during the meeting:

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

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

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

The liquidators can be reached at:

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


IVY MA (CAYMAN 5): Final Shareholders Meeting Is on Sept. 7
-----------------------------------------------------------
Ivy Ma Holdings Cayman 5 Ltd. will hold its final shareholders
meeting on Sept. 7, 2007, at 9:30 a.m., at the office of the
company.

These agendas will be taken during the meeting:

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

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

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

The liquidators can be reached at:

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


IVY MA (CAYMAN 8): Final Shareholders Meeting Is on Sept. 7
-----------------------------------------------------------
Ivy Ma Holdings Cayman 8 Ltd. will hold its final shareholders
meeting on Sept. 7, 2007, at 10:00 a.m., at the office of the
company.

These agendas will be taken during the meeting:

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

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

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

The liquidators can be reached at:

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


M & M ARBITRAGE: Sets Final Shareholders Meeting for Sept. 6
------------------------------------------------------------
M & M Arbitrage Offshore Ltd. will hold its final shareholders
meeting on Sept. 6, 2007, at 10:00 a.m., at:

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

These agendas will be taken during the meeting:

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

   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:

         M & M Partners, LLC
         Bank of America Corporate Center
         100 N. Tryon Street, Suite 5130
         Charlotte, North Carolina 28202
         U.S.A.


MERRILL LYNCH: Sets Final Shareholders Meeting for Sept. 6
----------------------------------------------------------
Merrill Lynch European Equity Hedge Fund Ltd. will hold its
final shareholders meeting on Sept. 6, 2007, at:

          Boundary Hall, George Town
          Grand Cayman, Cayman Islands

These agendas will be taken during the meeting:

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

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

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

The liquidators can be reached at:

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


MERRILL LYNCH (EURO): Final Shareholders Meeting Is on Sept. 6
--------------------------------------------------------------
Merrill Lynch European Equity Hedge Fund (Euro) Ltd. will hold
its final shareholders meeting on Sept. 6, 2007, at:

          Boundary Hall, George Town
          Grand Cayman, Cayman Islands

These agendas will be taken during the meeting:

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

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

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

The liquidators can be reached at:

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


MERRILL LYNCH (USD): Sets Final Shareholders Meeting on Sept. 6
---------------------------------------------------------------
Merrill Lynch European Equity Hedge Fund (USD) Ltd. will hold
its final shareholders meeting on Sept. 6, 2007, at:

          Boundary Hall, George Town
          Grand Cayman, Cayman Islands

These agendas will be taken during the meeting:

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

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

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

The liquidators can be reached at:

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


NEST FUNDING: Proofs of Claim Filing Ends on Sept. 7
----------------------------------------------------
Nest Funding Corp.'s creditors are given until Sept. 7, 2007, to
prove their claims to Shinji Arakawa, 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.

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

The liquidator can be reached at:

       Shinji Arakawa
       Kokusai BLDG, 9F1-1 Marunouchi 3-chome
       Chiyoda-ku, Tokyo


NISHI-NIPPON: Proofs of Claim Must be Filed by Sept. 6
-------------------------------------------------------
Nishi-Nippon Preferred Capital (Cayman) Ltd.'s creditors are
given until Sept. 6, 2007, to prove their claims to Guy Major
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.

Nishi-Nippon's shareholders agreed on July 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:

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


NISHI-NIPPON: Will Hold Final Shareholders Meeting on Sept. 6
-------------------------------------------------------------
Nishi-Nippon Preferred Capital (Cayman) Ltd. will hold its final
shareholders meeting on Sept. 6, 2007, at:

          Boundary Hall, George Town
          Grand Cayman, Cayman Islands

These agendas will be taken during the meeting:

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

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

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

The liquidators can be reached at:

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


PURE IP: Will Hold Final Shareholders Meeting on Sept. 7
--------------------------------------------------------
Pure IP Holdings will hold its final shareholders meeting on
Sept. 7, 2007, at:

         First Floor, Alamander Way
         Grand Pavilion, West Bay Road
         Grand Cayman, Cayman Islands

These agendas will be taken during the meeting:

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

   2) 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:

         David A.K. Walker
         Attention: Jodi Jones
         P.O. Box 258
         Grand Cayman KY1-1104
         Cayman Islands
         Tel: (345) 914 8694
         Fax: (345) 945 4237




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


GERDAU SA: Earns BRL1.7 Billion in First Six Months
---------------------------------------------------
Gerdau SA reported net profit of BRL1.7 billion (US$0.9 billion)
for the first six months of 2007, 4.6% less than the same period
for 2006.  The net margin was 13.1%.

Output of crude steel reaches 8.3 million metric tons in the 1st
half, 8.2% more than the volume produced in 2006.

Gross sales revenue reaches BRL15.3 billion (US$8.0 billion) in
the first six months of 2007, 13.7% more than the same period
2006.  Of this amount, 64.1% consists of exports and sales by
overseas companies.

Exports from the Brazilian units contributed US$645.4 million to
gross sales revenue in the 1st half of 2007.

Operating cash generation (EBITDA) reported an accumulated
BRL2.8 billion (US$ 1.5 billion) in the 1st half of 2007, 8.4%
higher than the 1st half of 2006.  EBITDA margin was 21.2%.

Second quarter dividends will be paid on August 29. Shareholders
of Metalurgica Gerdau S.A. will receive BRL0.49 (US$0.25) per
share and Gerdau S.A. BRL0.29 (US$0.15) per share.

The acquisitions announced this year represent an expansion of
Gerdau's business to four more countries, the company's
footprint now extending to thirteen countries.

Gerdau's internal control structure receives full compliance
certification under section 404 of the Sarbanes-Oxley Act (SOX).

The company said that Fitch and Standard & Poor's rating
agencies raised their risk classification for Gerdau to
Investment Grade for the issue of foreign currency debt.

Gerdau signs agreements for new labor contracts with the United
Steelworkers -- USW, at various North American units.

This year, Gerdau commemorates 60 years as a participant in the
capital markets and uninterrupted payment of dividends to its
shareholders.

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.


GERDAU SA: Construction Sector Crisis Won't Affect Performance
--------------------------------------------------------------
Gerdau SA Chief Executive Officer Andre Gerdau Johannpeter told
Business News Americas that he is positive a "crisis in the
housing construction" sector in the US is unlikely to affect the
firm's business "at the moment."

Mr. Johannpeter commented to reporters, "Only a small share, or
about 8% of sales, is focused on the housing sector.  It's too
early to make a precise evaluation in the medium to short-term
because there's no way of knowing how this crisis could impact
other sectors of the US economy."

BNamericas notes that Gerdau holds a 67% stake in Gerdau
Ameristeel, which is in North America.

Mr. Johannpeter told BNamericas that in Europe, where Gerdau
owns 40% of Spanish steel group Sidenor, demand would remain
positive for the rest of 2007.  Gerdau's activities on the
continent are concentrated on the automobile industry.

Sidenor signed in 2006 a contract to purchase 100% of Spanish
industrial group CIE Automotive's subsidiary GSB Acero,
BNamericas states.

                        About Sidenor

Sidenor S.A., a member of Viohalco S.A. Group, is a Greece-based
company that is active in the production and sale of steel
construction and industrial products.  Its products include
concrete reinforcing steel, merchant bars, wire rod, network
steel pipes and tubes, construction steel pipes, steel pipes for
the oil and gas industry, galvanized wire products, steel
sheets, welding electrodes and wires, and steel fibers.  The
company's production activity is distributed through its various
regional subsidiaries, which include Sovel S.A., Depal S.A.,
Stomata Industry S.A. of Bulgaria, Aeiforos S.A., Prosal S.A.,
Dojran Steel LLCOP of the former Yugoslavian Republic of
Macedonia, Corinth Pipeworks S.A., VET S.A., Erlikon S.A. and
ETAL S.A.

                    About Gerdau Ameristeel

Headquartered in Tampa, Florida, Gerdau Ameristeel Corporation -
- http://www.gerdauameristeel.com/-- (NYSE:GNA; TSX:GNA.TO) is
the second largest minimill steel producer in North America with
annual manufacturing capacity of over 9 million tons of mill
finished steel products.  Through its vertically integrated
network of 17 minimills (including one 50%-owned joint venture
minimill), 17 scrap recycling facilities and 51 downstream
operations (including seven joint venture fabrication
facilities), Gerdau Ameristeel serves customers throughout North
America.  The company's products are generally sold to steel
service centers, to steel fabricators, or directly to original
equipment manufacturers for use in a variety of industries,
including construction, automotive, mining, cellular and
electrical transmission, metal building manufacturing and
equipment manufacturing.  The company is a subsidiary of
Brazil's Gerdau SA.

                       About Gerdau SA

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.


SUN MICROSYSTEMS: Restructuring Plan Calls for Workforce Cut
------------------------------------------------------------
Sun Microsystems Inc.'s Board of Directors approved
Aug. 1, 2007, a plan to better align the company's resources
with its strategic business objectives, including reducing its
workforce.

The company expects to incur total charges ranging from
US$100 million to US$150 million over the next several quarters
in connection with the restructuring plan, the majority of which
relate to cash severance costs and is expected to be incurred
in the first half of the fiscal year ended June 30, 2008.

Additionally, Sun Microsystems' Board amended the company
bylaws decreasing the number of board members to 10 from 11.

Sun Microsystems' results for the fiscal year ended
June 30, 2007, showed net income of US$473 million, as compared
with a net loss of $864 million for fiscal 2006.

For the full fiscal year, the company reported revenues of
US$13.87 billion, an increase of 6.2 percent over fiscal year
2006.

At June 30, 2007, the company's unaudited consolidated balance
sheet showed US$15.8 million in total assets, US$8.6 million in
total liabilities, and US$7.2 million in total stockholders'
equity.

Headquartered in Santa Clara, California, Sun Microsystems Inc.
(NASDAQ: SUNW) -- http://www.sun.com/-- provides network
computing infrastructure solutions that include computer
systems, data management, support services and client solutions
and educational services.  It sells networking solutions,
including products and services, in most major markets worldwide
through a combination of direct and indirect channels.

Sun Microsystems conducts business in 100 countries around the
globe, including Latin America: Chile, Colombia, Brazil,
Argentina, Mexico and Venezuela.

                        *     *     *

Sun Microsystems Inc.'s 7.65% Senior Notes due Aug. 15, 2009,
carry Moody's Investors Service's Ba1 rating and Standard &
Poor's BB+ rating.




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


BANCOLOMBIA: Says Banagricola Would Represent 15% of Profits
------------------------------------------------------------
Bancolombia chairperson Jorge Londono said in a conference call
that the bank expects its recently acquired El Salvadorian bank
Banagricola to represent 15% of the balance sheet and profits.

Business News Americas relates that Bancolombia completed the
acquisition of Banagricola in May 2007.  It purchased the bank
for US$800 million.

According to BNamericas, Bancolombia included Banagricola for
the first time in its first half 2007 results.  Its profits in
the first six months of 2007 increased by 58.1% to COP448
billion, compared to the same period last year.  Banagricola
contributed COP66.4 billion in the period.

BNamericas notes that due to the acquisition of Banagricola,
Bancolombia "accumulated COP752 billion in goodwill, which will
be amortized in 20 years, at US$1 million a month during the
first year to reach US$5 million a month in the 20th year.  On a
stand-alone basis," Bancolombia's consolidated profit increased
163% to COP181 billion in the second quarter 2007, from the same
period in 2006.

Bancolombia's assets including Banagricola was COP45.0 trillion,
while its liabilities totaled COP41.4 trillion in June 2007,
BNamericas states.

Bancolombia is Colombia's largest full-service financial
institution, formed by a merger of three leading Colombian
financial institutions.  Bancolombia's market capitalization is
over US$5.5 billion, with US$13.8 billion asset base and US$1.4
billion in shareholders' equity as of Sept. 30, 2006.
Bancolombia is the only Colombian company with an ADR level III
program in the New York Stock Exchange.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 27, 2007, Moody's Investors Service changed the outlook to
positive from stable on its Ba3 long-term foreign currency
deposit ratings and Ba1 long-term foreign currency subordinated
bond rating for Bancolombia, S.A.

As reported in the Troubled Company Reporter-Latin America on
May 4, 2007, Fitch Ratings downgraded and removed from Rating
Watch Negative Bancolombia's long-term and short-term local
currency Issuer Default Ratings and Individual rating:

   -- Individual rating to 'C/D' from 'C';
   -- Local currency long-term IDR to 'BB+' from 'BBB-'; and
   -- Local currency short-term rating to 'B' from 'F3';

In addition, Fitch affirmed these ratings:

   -- Foreign currency long-term IDR at 'BB+';
   -- Foreign currency short-term rating at 'B'; and
   -- Support rating at '3'.

Fitch says the rating outlook was stable.


SOLUTIA INC: Judge Beatty Rejects Disclosure Statement
------------------------------------------------------
Tiffany Kary at Bloomberg News reports that the U.S. Bankruptcy
Court for the Southern District of New York rejected Solutia
Inc. and its debtor-affiliates' Disclosure Statement, ordering
the Debtors to resolve the US$20,000,000,000 environmental
liabilities inherited from its former parent, Monsanto Company,
first.

The Honorable Prudence Carter Beatty said that she needed to
see the updated Monsanto Settlement that the Debtors'
reorganization plan depends on.  Jonathan S. Henes, Esq., at
Kirkland & Ellis LLP, in New York, informed the Court that the
Debtors plan to file the Monsanto Settlement by Aug. 15, 2007.

The hearing on the Monsanto and Retiree Settlements is postponed
to Oct. 1, 2007.  A hearing on the confirmation of the
Debtors' Plan will be held after that.

            Nitro Tort Victims' Supplemental Objection

The Nitro, West Virginia Tort Victims relate that the Debtors
have consistently represented that the Nitro Tort Victims' clams
are "Tort Claims," which will be unaffected by the Debtors'
Chapter 11 cases or the Debtors' plan of reorganization.  The
Debtors and the Nitro Tort Victims are in agreement in concept,
yet as of July 31, 2007, the parties still have not been able to
agree upon mutually consensual language that clearly expresses
these intentions.

The Debtors' current definition of "Tort Claims," or now,
"Legacy Tort Claims" uses language and concepts rooted in the
transactions underlying a distribution agreement.  The
Distribution Agreement is an extremely complex agreement and is
not a plan document, Douglas T. Tabachnik, Esq., at the Law
Offices of Douglas T. Tabachnik, in Manalapan, New Jersey,
notes.

Mr. Tabachnik explains that understanding the Debtors' current
definition of "Legacy Tort Claims" requires special knowledge of
the relationship and transactions between Solutia Inc., and
Monsanto.  The language of the Plan and the terms defined in the
Plan should be plain and clear so as to be understood by a
reasonable person, and not a person intimately familiar with the
legal relationships and transactions that have transpired
between Solutia and Monsanto.

The Debtors' disclosure statement should not be approved because
the Debtors' Plan provides for third party releases and
injunctions without providing any information in the Disclosure
Statement or Plan of the acts to be enjoined or identifying the
entittles that would be subject to the injunctions, Mr.
Tabachnik maintains.

                 Exclusive Periods Extension Sought

In July 2007, the Debtors asked the Court to further extend
their exclusive period to file a plan of reorganization until
Dec. 31, 2007, and their exclusive period to solicit acceptances
of that plan until Feb. 29, 2008.

The Debtors' exclusive period to file a plan and solicit
acceptances of that plan ended on July 30, 2007, and
Sept. 28, 2007, respectively.

The Debtors filed their First Amended Plan and related
disclosure statement, as it has been or may be amended, on
May 16, 2007.  The modified Plan enjoys the support of many of
Solutia Inc.'s significant stakeholders, including the Official
Committee of Unsecured Creditors, Official Committee of
Solutia's retirees, Monsanto Company, and the Ad Hoc Committee
of Trade Claims Creditors.

Jonathan S. Henes, Esq., at Kirkland & Ellis LLP, in New York,
told the Court that the Plan is premised on two settlements --
a settlement between Solutia and Monsanto, and a settlement
between Solutia and the Retirees Committee, Monsanto and the
Creditors Committee.  The Settlements achieve a reallocation of
legacy liabilities and are the cornerstones of Solutia's Plan,
therefore, they must be approved before or in conjunction with
the confirmation of Solutia's Plan.  The Settlements will be
heard on Sept. 5, 2007.

Solutia said it is revising its Disclosure Statement and
drafting the necessary additional disclosures to comply with the
Court's directions.  In addition, Solutia said it is preparing
for the Sept. 5, 2007 hearing on the Settlements.  Solutia
believes that the Settlements readily meet the standards for
approval under Bankruptcy Rule 9019.

                      About Solutia Inc.

Headquartered in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ)
-- http://www.solutia.com/-- and its subsidiaries, engage in
the manufacture and sale of chemical-based materials, which are
used in consumer and industrial applications worldwide.  Solutia
has operations in Malaysia, China, Singapore, Belgium, and
Colombia.  The company and 15 debtor-affiliates filed for
chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No.
03-17949).  When the Debtors filed for protection from their
creditors, they listed US$2,854,000,000 in assets and
US$3,223,000,000 in debts.

Solutia is represented by Allen E. Grimes, III, Esq., at
Dinsmore & Shohl, LLP and Conor D. Reilly, Esq., at Gibson,
Dunn & Crutcher, LLP.  Trumbull Group LLC is the Debtor's claims
and noticing agent.  Daniel H. Golden, Esq., Ira S. Dizengoff,
Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer &
Feld LLP represent the Official Committee of Unsecured
Creditors, and Derron S. Slonecker at Houlihan Lokey Howard &
Zukin Capital provides the Creditors' Committee with financial
advice.  (Solutia Bankruptcy News, Issue No. 95; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)


SOLUTIA INC: Creditors' Committee Wants Settlements Approved
------------------------------------------------------------
The Official Committee of Unsecured Creditors in Solutia Inc.
and its debtor-affiliates' bankruptcy cases; and Monsanto
Company and Pharmacia Corporation ask the U.S. Bankruptcy Court
for the Southern District of New York to approve:

  (i) the settlement among Solutia Inc., Monsanto, Pharmacia
      Corporation, the Creditors Committe, the Official
      Committee of Retirees, and the Ad Hoc Trade Committee; and

(ii) the settlement among Solutia, Monsanto, the Retirees'
      Committee, and the Creditors Committee Settlement.

The Creditors Committee relates that the Settlements are
critical components of the Debtors' Second Amended Joint Plan of
Reorganization, pursuant to which the Debtors have settled all
pending litigation against Monsanto and Pharmacia, including
objections to proofs of claim filed by Monsanto and Pharmacia,
by fixing legacy liabilities that Monsanto will assume under the
Plan, and obtaining Pharmacia's agreement to waive all of its
claims against the Debtors with prejudice.  The Debtors also
have achieved reductions in future benefit obligations to
Solutia's retirees through agreement with the Official Committee
of Retirees.

The Creditors Committee believes that the Settlements achieve a
reallocation of the Debtors' legacy liabilities necessary to
pave the way for the Debtors' successful reorganization and that
the Settlements are fair and equitable, as required under
applicable law.

The Creditors Committee reserves the right, and intends, to
supplement its joinder with additional arguments in support of
the Motion and respond to any objections filed in connection
with the Motion.  Monsanto and Pharmacia also reserve their
rights to reply to any objection filed with respect to the
Motion; file papers in support of the relief requested; and
participate in any hearing, disposition, discovery or any other
matter relating to the Motion.

                         Objections

(1) Noteholders Committee

The Ad Hoc Committee of Solutia Noteholders asks the Court to
deny approval of the Monsanto Settlement, or in the alternative,
adjourn the hearing on the Motion.

Bennett J. Murphy, Esq., at Hennigan, Bennett & Dorman LLP, in
Los Angeles, California, notes that the Debtors have not
demonstrated that the Monsanto Settlement is fair and equitable
because they have not provided the Court with the rigorous
analysis necessary for the Court to compare the likelihood of
their success in litigation against Monsanto and Pharmacia with
the benefits of the settlement.  In fact, it is not apparent
that the Debtors have even conducted the analysis that would be
required to make the determination, he contends.

Mr. Murphy states that to obtain approval of the Monsanto
Settlement, the Debtors will have to make at least three crucial
showings, with respect to which the Motion is wholly inadequate.
These are:

   -- Debtors must lay out for the Court the results of their
      investigation of the claims between the Debtors, Monsanto
      and Pharmacia that they conducted at the outset of their
      Chapter 11 cases, whatever that investigation might have
      been;

   -- Debtors must quantify the liabilities they are to retain
      under the settlement and compare that to the liabilities
      that would be put to Monsanto if the Debtors prevailed in
      their litigation; and

   -- Debtors must demonstrate why their odds of success in
      litigation are so low that it is worth their retaining
      those liabilities and paying US$240,000,000 to Monsanto.

The Noteholders Committee has made these points before.  Had the
Debtors undertakenthe analysis to establish any of the points,
they would have most certainly disclosed so in their disclosure
statement, Mr. Murphy tells the Court.  Instead, the Debtors
have persisted in proposing disclosure on the litigation that
consists of little more than a self-serving "sales job" designed
to support approval of the Monsanto Settlement, he argues.

The memorandum of law in support of the Motion is replete with
reasons why the Debtors' litigation against Monsanto and
Pharmacia would likely fail.  Noticeably absent is any
discussion of the possibility that the Debtors might succeed, or
of the extensive analysis that the Debtors did, or should have
done, to reach their conclusions.  Mr. Murphy asserts that any
settlement is better than an outright loss in litigation.
Contrary to the Debtors' approach, the winning -- not the losing
-- scenario is the reference point against which a settlement
should be judged, he says.

Also absent form the Memo is any critical assessment of the
scope, magnitude and timing of the legacy liabilities proposed
to be assumed by the Debtors and made forever binding upon them
following emergence from bankruptcy, Mr. Muphy notes.  To
determine whether the Monsanto Settlement is of any benefit to
the Debtors at all, much less of sufficient benefit to outweigh
the Debtors' chances of success in litigation, the Court needs
to know whether or not they will be in a position to thrive as a
going, and growing, concern, or remain saddled by another
company's legacies, he asserts.

Moreover, the Debtors have failed to include a current, complete
and fully executed settlement agreement.  For that reason alone,
the Court should deny approval of the Monsanto Settlement, Mr.
Murphy maintains.

2) Nitro Tort Victims

The Nitro, West Virginia Tort Victims, which include about 2,300
current and former residents from one or more communities
surrounding a now defunct chemical plant located near Nitro,
West Virginia, ask the Court to deny the Motion to the extent
that it seeks approval of the Monsanto Settlement.

Certain Nitro Tort Victims filed proofs of claim asserting
claims against the Debtors for property damage, personal
injuries and medical monitoring arising from the Debtors'
ownership and operation of the Nitro Plant.  The Nitro Tort
Victims contend that their property has been contaminated and
their health has been endangered by the release of dioxin
contaminants resulting from the Debtors' tortious conduct at the
Nitro Plant.

In addition, two separate lawsuits are pending in Putnam County
Circuit Court, West Virginia, for injuries suffered from the
release of dioxin contaminants produced at the Nitro Plant.  The
lawsuits name Monsanto and Pharmacia, among others, as
defendants.

The Nitro Tort Victims relate that they have been assured that
it is the Debtors' intent to include claims held by the Nitro
Tort Victims in the definition of "Tort Claims" so that their
claims will not be affected by the Debtors' Chapter 11 cases and
will be resolved under applicable state or federal law outside
of the proceedings.

However, as of July 30, 2007, the Tort Claims definition
proposed by the Debtors and appearing in the Plan does not
clearly and unequivocably include the claims held by the Nitro
Tort Victims, Douglas T. Tabachnik, Esq., at the Law Offices of
Douglas T. Tabachnik, in Manalapan, New Jersey, notes.
Additionally, the language in the Debtors' Third Amended
Disclosure Statement circulated on July 25, 2007, but not filed,
regarding the "Monsanto/Pharmacia Injunction" does not clearly
and unequivocably allow the Nitro Tort Victims to pursue claims
they have or may have against Monsanto and Pharmacia, he says.

A certain relationship agreement, or any amendement to it,
between the Debtors and Monsanto, which the Debtors state is
critical to their Plan and which purports to contain the terms
of the Monsanto Settlement, has not been filed, Mr. Tabachnik
tells the Court.

The Court and the Nitro Tort Victims do not have the necessary
factual background to evaluate the Monsanto Settlement to
determine if it is fair and equitable.  "No one knows what the
terms of that settlement are," Mr. Tabachnik argues.  Moreover,
the only filed version of the Relationship Agreement that was
filed on Feb. 16, 2006, is incomplete and was not signed by
Monsanto, he points out.

The Relationship Agreement refers to 20 separate exhibits, which
are not included.  It is quite possible and likely that the
Relationship Agreement has materially changed since a version of
it was filed almost one and a half years ago.  "It is not
possible to determine if any other of Monsanto's obligations set
forth in the only Relationship Agreement filed has subsequently
been negotiated away," Mr. Tabachnik says.

The Relationship Agreement filed also provided that Monsanto
will indemnify Solutia for all "Tort Claims."  Because the
definition of Tort Claims has been revised to include "Solutia
Tort Claims," it appears that Monsanto is now not indemnifying
Solutia for all "Tort Claims," but rather for the "Legacy Tort
Claims," Mr. Tabachnik contends.

The Motion itself does not include all of the information on
which it relies, Mr. Tabachnik states.  The amount of
"consideration provided by Monsanto" is one of the key terms of
the compromise and settlement missing, he points out.

Also, the injunctive relief Monsanto will receive in the
Monsanto Settlement is exceedingly broad.  By its terms, the
Monsanto injunction enjoins all other tort claims against
Monsanto and all claims of any kind against Monsanto's unnamed
"Affiliates."  Mr. Tabachnik insists that all of these types of
tort claims need to be described so that the parties and tort
victims can be apprised that their rights are being affected.

                      About Solutia Inc.

Headquartered in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ)
-- http://www.solutia.com/-- and its subsidiaries, engage in
the manufacture and sale of chemical-based materials, which are
used in consumer and industrial applications worldwide.  The
company and 15 debtor-affiliates filed for chapter 11 protection
on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949).  When the
Debtors filed for protection from their creditors, they listed
US$2,854,000,000 in assets and US$3,223,000,000 in debts.

Solutia is represented by Allen E. Grimes, III, Esq., at
Dinsmore & Shohl, LLP and Conor D. Reilly, Esq., at Gibson,
Dunn & Crutcher, LLP.  Trumbull Group LLC is the Debtor's claims
and noticing agent.  Daniel H. Golden, Esq., Ira S. Dizengoff,
Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer &
Feld LLP represent the Official Committee of Unsecured
Creditors, and Derron S. Slonecker at Houlihan Lokey Howard &
Zukin Capital provides the Creditors' Committee with financial
advice.  (Solutia Bankruptcy News, Issue No. 95; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)




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


ALCATEL-LUCENT: Court Reverses US$1.5-Bln Microsoft MP3 Ruling
--------------------------------------------------------------
The Honorable Rudi M. Brewster of the U.S. District Court for
the Southern District of California overturned a February ruling
by a U.S. federal jury ordering Microsoft Corp. to pay around
US$1.52 billion in infringement damages to Alcatel-Lucent S.A.,
various reports say.

Judge Brewster ruled that concluded that Microsoft did not
infringe one of the two disputed MP3 patents, Bloomberg News
reports.

Judge Brewster also ruled that the other MP3 patent was co-owned
by Fraunhofer-Gesellschaft, which developed the format along
with Bell Labs and French electronics group Thomson, and
Microsoft had a valid license from the German group.  Judge
Brewster added that Alcatel-Lucent had to enjoin Fraunhofer-
Gesellschaft for its infringement suit for it to be valid in
court.

As reported on Feb. 28, 2007, the federal jury ordered Microsoft
to pay around US$1.52 billion in infringement damages to
Alcatel-Lucent, ruling that the software giant infringed two MP3
patents, which cover the encoding and decoding of audio into the
digital MP3 format.

Lucent Technologies Inc., which merged with Alcatel in 2006 to
form Alcatel-Lucent, filed 15 patent claims in 2003 against
Gateway Inc. and Dell Inc. for technology developed by Bell
Laboratories, its research arm, AP relates.  In April 2003,
Microsoft added itself to the list of defendants, saying the
patents were closely tied to its Windows operating system.  A
judge had dismissed the claims and scheduled six separate trials
for the remaining disputes.  The case in question went on trial
on Jan. 29.

Microsoft argued in court that Alcatel-Lucent's patents govern
its MP3 encoding and decoding tools, stressing that its MP3
software for Windows Media Player was licensed from Fraunhofer-
Gesellschaft, which developed the format along with Bell Labs
and French electronics group Thomson.

The federal jury had agreed on all Alcatel-Lucent's arguments
but reached an impasse on whether Microsoft had willfully
infringed on the Bell Labs patents, The Associated Press
reports.

Brad Smith, Microsoft's general counsel, called the ruling "a
victory for consumers of digital music and a triumph for common
sense in the patent system," Bloomberg News relates.

Mary Ward, Alcatel-Lucent spokeswoman, told Bloomberg News that
the company will appeal the ruling.

"The reversal of the judge's own pre-trial and post-trial
rulings is shocking and disturbing," Ms. Ward told Bloomberg
News.  "The jury unanimously agreed with us.  We believe their
decision should stand."

                     About Microsoft Corp.

Headquartered in Redmond, Washington, Microsoft Corp. --
http://www.microsoft.com/-- develops, manufactures, licenses
and supports a range of software products for computing devices.

                     About Alcatel-Lucent

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

                        *     *     *

In April 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.

In February 2007, Moody's Investor Services placed 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.


* COSTA RICA: Recope Sells Bidding Rules for Fuels Import Tender
----------------------------------------------------------------
A spokesperson for Costa Rican state refiner Recope told
Business News Americas that the firm has sold 12 sets of bidding
rules for the tender to draft the basic engineering for a
Pacific coast fuels import, storage and distribution terminal.

BNamericas relates that the potential bidders for the project
are:

          -- Servicios Generales Serma,
          -- Invotor,
          -- IJL y Asociados,
          -- Titan Representaciones y Suministros,
          -- Itansuca Proyectos de Ingenieria,
          -- Arcan,
          -- Inelectra,
          -- Laboratorios Gaia, and
          -- Imnsa Ingenieros Consultores.

According to BNamericas, the terminal would serve as an
alternative entry point.  It would help ensure fuel supply when
bad weather prevents ships from docking at Moin port on the
Atlantic.

BNamericas notes that Recope extended the bids submission
deadline to Sept. 10 from Aug. 31.

The report says that the contract for the project will last for
10 months. The winning bidder will draft basic engineering work
for a terminal that could receive vessels up to 40,000 tons.

Recope will construct a new terminal that could handle vessels
capable of transporting up to 80,000 tons, BNamericas states.

                        *     *     *

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




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


BANCO INTERCONTINENTAL: Central Bank Spends DOP74B on Bank
----------------------------------------------------------
Guzman Tapia & Asociados and Price Waterhouse Cooper said in
their audit report that the Dominican Republic's Central Bank
has spent DOP74 billion in the liquidation of the collapsed bank
Banco Intercontinental, Dominican Today reports.

Dominican Today relates that the audits show that financial
authorities recovered DOP9 billion and have pending sales of
DOP3 billion in assets.

According to Dominican Today, the government's legal
representatives sought the court's approval of the evidence.
"The funds paid for by the Central Bank were given to the
Baninter Assets Recovery and Liquidation Commission."  The
attorneys also tried to show the court the amount of money the
Central Bank has had to spend in Banco Intercontinental's
recovery process.

Former Progreso bank chief Pedro Castillo described before the
court the aborted plan to merge that bank with Banco
Intercontinental in 2003, Dominican Today notes.

Dominican Today states that the defendants in the Banco
Intercontinental fraud case include:

          -- Baez Figueroa,
          -- Marcos Baez Cocco,
          -- Vivian Lubrano de Castillo,
          -- Luis Alvarez Renta, and
          -- Manuel Troncoso Ferrua.

Located in Dominican Republic, Banco Intercontinental aka
Baninter collapsed in 2003 as a result of a massive fraud that
drained it of about US$657 million in funds.  As a consequence,
all of its branches were closed.  The bank's current and savings
accounts holders were transferred to the bank's new owner --
Scotiabank.  The bankruptcy of Baninter was considered the
largest in world history, in relation to the Dominican
Republic's Gross Domestic Product.  It cost Dominican taxpayers
DOP55 billion and resulted to the country's worst economic
crisis.




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


PETROECUADOR: Gets US$20 Million from Economy & Finance Ministry
----------------------------------------------------------------
Ecuadorian state-owned oil firm Petroecuador has received US$20
million from the economy and finance ministry, Business News
Americas reports.

According to BNamericas, the money will be used to strengthen
and support Petroecuador's objective of raising oil production.

The ministry said in a statement that the US$20 million is part
of US$180 million that it has set aside for Petroecuador.

Petroecuador told BNamericas that its crude production recovered
to 170,000 barrels per day after dropping to 163,000 barrels per
day in recent days after resolving technical problems.

Petroecuador wants daily production of 180,000 barrels by year-
end, BNamericas states.

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




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


HERBALIFE LTD: Wedbush Morgan Reaffirms Buy Rating on Firm
----------------------------------------------------------
Wedbush Morgan analysts have reaffirmed their "buy" rating on
Herbalife Ltd.'s shares, Newratings.com reports.

Newratings.com relates that the 12-month target price for
Herbalife's shares was set at US$47.

The analysts said in a research note that Herbalife reported its
second quarter 2007 revenues and adjusted earnings per share
ahead of the estimates.

The analysts told Newratings.com that the "upside was mainly due
to the better-than-expected US business, which experienced 31%
sales growth."

"Accelerating growth momentum in the US has mainly been on
account of the sustained penetration of Nutrition Clubs,"
Newratings.com says, citing Wedbush Morgan.

The earnings per share estimate for 2007 was increased to
US$2.58 from US$2.53, while the estimate for 2008 was raised to
US$2.93 from US$2.87, Newratings.com states.

Herbalife Ltd. (NYSE: HLF) -- http://www.herbalife.com/--
Herbalife, now in its 26th year, conducts business in 62
countries.  The company does business with several manufacturers
worldwide and has its own manufacturing facility in Suzhou,
China as well as major distribution centers in Venray,
Netherlands, Japan, Los Angeles, Calif., Memphis, Tenn.,
Guadalajara, Mexico, and El Salvador.  The company also has
operations in Venezuela.

                        *     *      *

As reported in the Troubled Company Reporter on April 5, 2007,
Standard & Poor's Ratings Services said that its 'BB+' corporate
credit rating on Los Angeles-based Herbalife Ltd. remains on
CreditWatch with negative implications following the company's
announcement that the company's board of directors has rejected
a bid to be acquired by Whitney V L.P.  The board indicated that
although it views Whitney's bid as too low, it would consider an
improved offer.




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


BANCO INDUSTRIAL: Merger Deal Prompts Moody's to Affirm Ratings
---------------------------------------------------------------
Moody's Investors Service affirmed the ratings of Banco
Industrial S.A. following the Guatemalan bank's announcement
that its shareholders have agreed to merge with Banco del
Quetzal (Grupo Financiero Banquetzal), the thirteenth largest
bank in Guatemala.  The transaction is still pending approval
from the Guatemalan banking regulator.

Moody's noted it was affirming Industrial's D bank financial
strength rating and its Baa3 and Prime-3 long and short term
global local currency deposit ratings, respectively, all with a
stable outlook.  The Ba3 and Not Prime long and short term
foreign currency deposit ratings are also affirmed, and remain
on positive outlook in line with that of the country ceiling for
deposits.

Moody's does not currently rate Banco del Quetzal S.A.
(Banquetzal) or Grupo Financiero Banquetzal.

The merger will occur through an exchange of shares, resulting
in the current shareholders of Industrial retaining control by
owning 95.1% of the merged entity shares and the shareholders of
Banquetzal owning the remaining 4.9%.

Moody's noted that the transaction is ratings neutral, given
Banquetzal's small size relative to Industrial which should
allow for a smooth merger by absorption. Banquetzal will add
1.8% loan market share for a total of 28.5% for the combined
bank, primarily in the consumer and residential mortgage
segment, and will add 14 branches to Industrial's current 240. A
predominant share (78%) of Banquetzal's funding consists of
retail deposits.

Banco Industrial S.A. is the largest bank in Guatemala with
consolidated assets of approximately US$3.86 billion and equity
of US$327.4 million as of June 30, 2007.  Banco del Quetzal S.A.
reported US$232 million in assets and US$18 million in equity as
of June 30, 2007.  Grupo Financiero Banquetzal reported US$250
million in assets and US$21 million in equity as of June 30,
2007.

These ratings were affirmed for Banco Industrial S.A.:

  -- Bank Financial Strength Rating: D, with stable outlook

  -- Global Local Currency Ratings: Baa3 long term local
     currency deposit rating and Prime-3 short term local
     currency deposit rating, with stable outlook

  -- Foreign Currency Deposit Ratings: Ba3, long term foreign
     currency deposit rating and Not Prime short term foreign
     currency deposit rating, with positive outlook


BRITISH AIRWAYS: Arraignment in the U.S. Expected Next Week
-----------------------------------------------------------
British Airways plc is set to appear before the U.S. Department
of Justice in Washington DC next week in a probe into its
collusion with Virgin Atlantic over long-haul passenger fuel
surcharges, Edmund Conway writes for the Sunday Telegraph.

According to the report, it is speculated that current BA
executives will be among those the DOJ will name during the
arraignment.

The Sunday Telegraph says these executives, who are just below
the board level, could be extradited to the U.S. for trial.

Former BA executives Martin George and Iain Burns were earlier
identified in connection with the case.  The two executives, who
resigned last year, may face criminal charges, The Sunday
Telegraph relates.

                          DOJ Probe

On Aug. 1, 2007, the DOJ revealed that BA has agreed to plead
guilty and pay US$300 million criminal fines for its role in
conspiracies to fix the prices of passenger and cargo flights.

The charges against the airline were filed in the U.S. District
Court for the District of Columbia.

The DOJ said that passengers who flew on BA flights between the
U.K. and the U.S. during the charged period paid more for their
tickets as a result of the illegal cartel.  In 2004, BA's fuel
surcharge for round-trip passenger tickets was around US$10 per
ticket.  By the time the passenger conspiracy was cracked in
2006, the surcharge was nearly a 10-fold increase to US$110 per
ticke, the Department said.  The Department noted that during
the air cargo conspiracy, BA's fuel surcharge on shipments to
and from the U.S. changed more than 20 times and increased from
four cents per kilogram of cargo shipped to as high as 72 cents
per kilogram.

BA is charged with engaging in a conspiracy to suppress and
eliminate competition by fixing the rates charged to customers
for international air shipments of cargo, including shipments to
and from the U.S.  Billions of dollars of consumer and other
goods, including produce, clothing, electronics and medicines,
are shipped by BA and its competitors in the air cargo industry.
BA participated in that conspiracy between March 2002 and
February 2006.

The Department also charged that between August 2004 and
February 2006, BA engaged in a conspiracy to suppress and
eliminate competition by fixing the fuel surcharge charged to
passengers on long-haul international flights, including flights
between the U.S. and the U.K.  BA's long-haul flights are
flights between the U.K. and certain foreign destinations,
including any flight to and from the U.S.  Passengers pay
hundreds of millions of dollars in ticket prices each year, and
the conspiracy raised the price on virtually every ticket
purchased between 2004 and 2006 for the conspirators' long-haul
international flights, the Department said.

BA is charged with carrying out the two price-fixing
conspiracies with co-conspirators by, among other methods:

    * participating in meetings, conversations, and
      communications to discuss the cargo rates on shipments to
      and from the U.S. and passenger fuel surcharges
      to be charged for flights between the U.S. and
      the U.K.;

    * agreeing, during those meetings, conversations, and
      communications, on certain components of the cargo rates
      on shipments to and from the U.S. and passenger
      fuel surcharges to levy for flights between the U.S. and
      the U.K.;

    * levying cargo rates and passenger fuel surcharges in
      accordance with the agreements reached; and

    * engaging in meetings, conversations, and communications to
      monitor and enforce the agreed-upon rates.

BA is charged with two counts of price fixing in violation of
the Sherman Act.  Each count of the Sherman Act carries a
maximum sentence of 10 years of imprisonment for individuals and
a fine of US$100 million for corporations.  The maximum fine may
be increased to twice the gain derived from the crime or twice
the loss suffered by the victims of the crime, if either of
those amounts is greater than the statutory maximum fine.

                          OFT Probe

As previously reported in the TCR-Europe on Aug. 2, 2007, BA has
admitted collusion over the price of "long-haul passenger fuel
surcharges" and will pay a penalty of GBP121.5 million to be
imposed by the U.K. Office of Fair Trading, thus enabling the
OFT to close its civil investigation and resolve this case.  The
penalty will be the highest ever imposed by the OFT for
infringements of competition law, and demonstrates the
determination of the OFT to deal vigorously with anti-
competitive behavior.

BA has admitted that between August 2004 and January 2006, it
colluded with Virgin Atlantic over the surcharges, which were
added to ticket prices in response to rising oil prices.  Over
that period, the surcharges rose from GBP5 to GBP60 per ticket
for a typical BA or Virgin Atlantic long-haul return flight.

Virgin Atlantic is not expected to pay any penalty as it
qualifies in principle for full immunity under the OFT's
leniency policy.  Under this policy, a company which has been
involved in cartel conduct and which is the first to give full
details about it to the OFT will qualify for immunity from
penalties in relation to that conduct.  In addition, any company
staff involved in the price fixing disclosed will qualify for
immunity from criminal prosecution in relation to that conduct.
The OFT's investigation was prompted after Virgin Atlantic came
forward with information about price fixing with BA over the
surcharges.  BA has also provided full co-operation
with the OFT's investigation under the leniency program and this
is reflected in the penalty .

BA accepts the OFT's finding that on at least six occasions the
two companies discussed and/or informed each other about
proposed changes to the level of the surcharges, rather than
setting levels independently as required under clear and
well-established competition law principles.

The OFT's investigation was conducted in parallel with a similar
case brought by the United States Department of Justice.  The
investigations by the OFT and DoJ were separate but the two
agencies have consulted each other closely throughout.

In addition to the investigation into BA's corporate
conduct under civil competition law, the OFT is also conducting
a criminal investigation into whether any individuals
dishonestly fixed the levels of the surcharges - an offence
under the Enterprise Act.  The corporate admission by British
Airways that it infringed civil competition law does not imply
that any individuals dishonestly fixed prices contrary to the
Enterprise Act.  The criminal investigation is ongoing and no
conclusions have been reached as to whether criminal proceedings
against individuals can or should be brought.

A report in the Class Action Reporter on Aug. 6, 2007, relates
that the decisions by competition regulators in the U.S. and
U.K. to fine BA for colluding to fix surcharges on tickets are
expected to spark class actions against the company.

As many as 20 million passengers could file claims of up to
GBP165 per return flight against the company, lawyers said,
according to The Scotsman.  The U.S. law firm Cohen, Milstein,
Hausfeld & Toll has told The Scotsman it planned to launch
proceedings against the airlines.  It has a London office, which
will co-ordinate U.K. clients.

BA previously disclosed that it made a provision of GBP350
million for the claims.

"The figure is our best estimate and that remains the case, " a
BA spokesman was quoted by The Sunday Telegraph as saying.

However, he stressed that the provision is not a ceiling for the
total of penalties and civil claims.

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

British Airways Holidays Ltd. and British Airways Travel
Shops Ltd.  BA has offices in India and Guatemala.

                        *     *     *

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

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

* Issuer: British Airways, Plc

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

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




===========
G U Y A N A
===========


FLOWSERVE CORP: Earns US$63.2 Million in Quarter Ended June 30
--------------------------------------------------------------
Flowserve Corp. reported US$63.2 million on US$930.7 million of
net revenues for the three months ended June 30, 2007, compared
to US$33.6 million of net income on US$752.8 million of net
revenues for the same period in 2006.

Flowserve also posted record second quarter bookings of US$1.1
billion, up 16%, led by continued strength in chemical and oil
and gas markets globally.   Additionally, the company said it
expects 2007 sales to finish the year at the higher end of the
previously provided US$3.4 billion to US$3.6 billion range.  The
company also reaffirmed 2007 operating margin improvement
targets of between 200 and 300 basis points versus 2006.  The
company further said that it had amended its existing credit
agreement to increase flexibility and decrease its effective
interest rates and associated credit fees.

The company's Gross profit increased to US$302 million, up US$50
million or 20%. Gross margin decreased by 110 basis points to
32.5%.  This decrease reflects the company's continued success
in delivering large original equipment pump projects, which was
a higher percentage of the company's divisional business mix and
carried lower gross margins than aftermarket business.

SG&A expenses as a percentage of sales were down 180 basis
points to 22.5%. This is primarily the result of cost
containment efforts, reduced finance audit and related
professional fees, and the leverage of fixed SG&A expenses on
strong sales growth.  SG&A expenses in total increased to US$210
million, up US$26 million or 14%.  This increase is primarily
attributed to an increase in selling related expenses in support
of the significant rise in bookings and sales, and a currency
increase of approximately US$6 million.

Operating income increased significantly to US$97 million, up
US$24 million or 32%. Income from operations benefited from
significantly higher sales, improved gross profit and reduced
SG&A expenses as a percentage of sales.  Operating margin
increased 70 basis points from 9.7% to 10.4%.

The company also announced it has completed a favorable
amendment to its current credit agreement.  This amendment
includes a 2-year maturity extension of the US$400 million
revolving line of credit.  It also includes a reduction in the
effective interest rates charged on revolving debt, the fees
associated with letters of credit, and the commitment fee on the
unused portion of the facility, which combined should yield cost
savings of more than US$1 million annually.  Additionally, the
amendment eliminates certain restrictions limiting defined
"restricted" payments (which include dividends and share
repurchases), acquisitions, and capital expenditures by the
company.  "We are very pleased with the amendment," said Mark A.
Blinn, Flowserve's Chief Financial Officer.  "The more favorable
terms afforded us by the amendment should give us greater
financial flexibility and lower effective interest rates and
fees for the future."

                        2007 Outlook

"We are very pleased with the progress we have made on
delivering against our core strategies and financial objectives
during the first half of 2007," Mr. Kling said.  "We continue to
attribute our strong financial results to the breadth and
quality of our products, our global operational presence and
capabilities, the talent of our global employees and the
continued strength of our markets.  Based on our results to
date, we believe we are well positioned to deliver at the higher
end of our full year 2007 sales target of US$3.4 billion to
US$3.6 billion. We are also reaffirming our target to deliver
between 200 to 300 basis points of operating margin improvement
to the bottom line."  "Further, we estimate our tax rate in Q3
and Q4 of 2007 and all of 2008 to be approximately 35%,
excluding any discrete items or impact from Fin 48, as we
continue to make solid progress on our tax planning
initiatives."

                           Summary

"We are very pleased with the performance of the company during
the second quarter of 2007.  The team executed well against our
strategic priorities and continued to make marked progress
towards achieving the goals we set out for 2007 and beyond," Mr.
Kling said.

Headquartered in Irving, Texas, Flowserve Corp. (NYSE: FLS) --
http://www.flowserve.com/-- provides fluid motion and control
products and services.  Operating in 56 countries, the company
produces engineered and industrial pumps, seals and valves as
well as a range of related flow management services.  In Latin
America, Flowserve operates in 36 countries such as the
Dominican Republic, Guatemala, Guyana and Belize.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 13, 2007, Fitch Ratings initiated coverage of Flowserve
Corp. and assigned these ratings:

   -- Issuer Default Rating (IDR) 'BB'; and
   -- Senior secured bank facilities 'BB'.

Fitch said the rating outlook is stable.




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


CENVEO INC: Reports US$2.8 Million in Quarter Ended June 30
-----------------------------------------------------------
Cenveo Inc. recorded net income of US$2.8 million for the three
months ended June 30, 2007, compared to a net loss of US$33.1
million in 2006.  The second quarter 2007 results included a
loss from discontinued operations, net of taxes, of US$0.3
million, as compared to income from discontinued operations of
US$12.7 million in the same period of 2006.  Second quarter 2007
results also included restructuring and impairment charges of
US$9.2 million, as compared to restructuring and impairment
charges of US$17.2 million in the same period of 2006.  Net
sales for the quarter increased approximately 39% to US$497.0
million from US$357.9 million in the same period of 2006,
primarily due to the acquisition of Cadmus and Printegra, which
both closed in the first quarter of 2007.

Non-GAAP income from continuing operations totaled US$13.4
million, or US$0.25 per diluted share, in the second quarter of
2007, as compared to US$8.4 million, or US$0.16 per diluted
share, in the second quarter of 2006.  Non-GAAP income from
continuing operations excludes integration costs, restructuring
and impairment charges, (gain) loss on sale of non-strategic
business and loss on early extinguishment of debt.

Operating income totaled US$28.9 million in the second quarter
of 2007, as compared to US$5.7 million in the second quarter of
2006.  Non-GAAP operating income in the second quarter of 2007
was US$38.6 million, which produced a 7.8% margin, reflecting
the continued benefits of the company's cost savings and
restructuring plans.  Non-GAAP operating income excludes
integration costs and restructuring and impairment charges.

Adjusted EBITDA in the second quarter of 2007 was US$56.5
million, as compared to US$34.7 million in the same period last
year, an increase of approximately 63%.  Adjusted EBITDA is
defined as earnings before interest, taxes, depreciation and
amortization, excluding integration costs, restructuring and
impairment charges, (gain) loss on sale of non-strategic
businesses, divested operations EBITDA, loss on early
extinguishment of debt, stock-based compensation provision, and
income (loss) from discontinued operations, net of taxes.

Robert G. Burton, Chairman and Chief Executive Officer stated:
"I am pleased to report that Cenveo was able to meet and exceed
its financial commitments during the second quarter.  We once
again delivered a strong quarter of results, with our Non-GAAP
income from continuing operations per diluted share increasing
56% from last year and our Adjusted EBITDA increasing 63% from
last year.  We were also able to increase our Non-GAAP operating
margins to 7.8% in the quarter from 6.4% last year.  I am also
pleased with our strong generation of cash from continuing
operations of US$38.7 million during the first half of 2007,
representing a US$65.4 million improvement over the same period
last year, which we believe demonstrates that the action plan we
implemented in September 2005 is working."

"I am very pleased with the performance of both of our business
segments during the quarter despite the challenges that exist in
the marketplace.  Our Envelopes, Forms and Labels segment was
able to overcome a mid-quarter postal rate increases and deliver
the results that we expected.  Our Commercial Printing segment
continued to show meaningful operational improvement and margin
expansion.  We are also encouraged by strong sales growth across
our journal and packaging product offerings and believe that
trend will continue," Mr. Burton added.

Mr. Burton concluded: "We have completed or announced the
addition of four outstanding companies to Cenveo this year.
Printegra, a leader in the short-run printing market, joined us
in February.  In March, we completed the acquisition of Cadmus,
the world's largest provider of content management and print
offerings to scientific, technical, and medical journal
publishers, and a leading provider of specialty packaging
products.  We significantly enhanced our commercial printing
operations in the West Coast market by acquiring ColorGraphics
in July 2007.  In addition, we will be expanding our geographic
reach and capabilities in the high-growth direct mail market.
We have committed financing in place in regards to our
previously announced agreement to acquire Commercial Envelope,
and anticipate closing this transaction in the third quarter of
this year.  These four market leaders, with combined annualized
revenues of over US$850 million, offer enhancements to our
product offerings.  We look forward to their contributions both
within their respective markets and from cross-selling
opportunities through our one-stop shopping platform."

"We will continue to focus our efforts on integrating these
companies into our operations on a swift and aggressive time
frame and driving incremental improvements to our platform by
focusing on our cost structure, expanding our sales initiatives,
increasing productivity and efficiencies and reducing waste.  We
are focused intensely on increasing our free cash flow and using
these funds to service our debt, while also expanding our
business through capital expenditures and thoughtful
acquisitions.  I also remain highly optimistic for our growth
prospects for the remainder of the year.  Our sales backlog has
strengthened, and we are now seeing the benefits of our one-stop
shopping sales efforts.  As we put the first half of 2007 behind
us, I can assure you that we are extremely focused on delivering
on the back half of the year.  We are proud of our second
quarter results; our third quarter looks promising, and we
remain comfortable with the targets we communicated for the full
year."

                        About Cenveo

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

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

                        *     *     *

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




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


BALLY TOTAL: Court Sets Sept. 17 Plan Confirmation Hearing
----------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
in Manhattan set the hearing to consider confirmation of Bally
Total Fitness Holding Corporation and its debtor-affiliates'
Prepackaged Plan of Reorganization -- at which time the Court
will also consider the adequacy of the Disclosure Statement
describing that Plan -- on Sept. 17, 2007, at 10:00 a.m.

Objections to the Disclosure Statement or confirmation of the
Plan are due by Sept. 7, 2007, at 5:00 p.m.

The Court approved the Debtors' proposed confirmation notice and
rejection claims confirmation notice.

According to Judge Lifland, the Debtors are not required to mail
a copy of the Confirmation Notice to their current or former
customers and members, and that notice to current and former
customers or members will be provided by publication only.

The Debtors will publish the Confirmation Notice twice in each
of (a) the national edition of The Wall Street Journal and (b)
the USA Today, with the initial publication being at least 25
days prior to the Confirmation Hearing, with the subsequent
publication occurring approximately seven to 10 days after.

The Debtors' Solicitation Procedures, Solicitation Package
utilized in soliciting acceptances and rejections of the Plan,
and Ballot forms are approved in all respects.

Judge Lifland held that holders of Class 6-B-1 and Class 6-B-2
Claims are deemed to have rejected the Plan, and the Debtors
were not, and will not be, required to solicit the votes of the
holders of these Claims to accept or reject the Plan.

The record date for determining which non-Voting Creditors and
equity holders are entitled to receive the Confirmation Notice
is August 1, 2007.

Moreover, Judge Lifland ruled that the Debtors are not required
to file or provide any periodic operating reports pursuant to
the Bankruptcy Code, Bankruptcy Rules or Local Rules, except as
may be provided specifically in the Plan or order confirming the
Plan.  This requirement will be permanently waived if the Plan
is confirmed on or prior to October 16, 2007.  Instead, for each
month until the entry of a final decree or until the cases are
converted or dismissed, the Debtors will provide to the U.S.
Trustee an affidavit listing the disbursements made by each
Debtor, Judge Lifland said.

                      About Bally Total

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.

No schedule has been set to date for an organizational meeting
that would create an Official Committee of Unsecured Creditors.
The Court recently held that the meeting of creditors pursuant
to Section 341(a) of the Bankruptcy Code will not be convened,
and is canceled, if the Debtors' Plan of Reorganization is
confirmed on or prior to October 16, 2007.  (Bally Total Fitness
Bankruptcy News, Issue No. 3; Bankruptcy Creditors' Services
Inc. http://bankrupt.com/newsstand/or 215/945-7000)


BALLY TOTAL: Gets Interim Okay to Hire Kirkland as Counsel
----------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New
York in Manhattan gave Bally Total Fitness Holding Corporation
and its debtor-affiliates authority, on an interim basis, to
employ Kirkland & Ellis LLP as as their special financing and
conflicts counsel, and special counsel in certain insurance
coverage disputes, effective as of July 31, 2007.

Marc D. Bassewitz, senior vice president, secretary and general
counsel of Bally Total Fitness Holding Corporation, relates that
the Debtors need Kirkland & Ellis to render legal services
relating to their postpetition and exit financing; use of cash
collateral; certain insurance coverage disputes; and issues not
appropriately handled by Latham & Watkins, LLP, the Debtors'
lead counsel, because of actual or potential conflict of
interest.

Mr. Bassewitz relates that Kirkland & Ellis has extensive
experience and knowledge in the field of debtors' and creditors'
rights and business reorganizations, and extensive expertise
practicing before bankruptcy courts.  The firm also served as
counsel to the Debtors on a variety of financing, insurance
coverage and other discrete matters over the last several years,
including the preparation for postpetition financing in the
Chapter 11 Cases.

Kirkland & Ellis will be paid based on its hourly rates:

           Partners                US$500 - US$975
           Of Counsel              US$380 - US$870
           Associates              US$275 - US$595
           Paraprofessionals       US$120 - US$260

The firm will also be reimbursed for it's reasonable out-of-
pocket expenses.

These professionals will have primary responsibility for
providing services to the Debtors:

                                    Billing Rate
                                    ------------
          Linda K. Myers               US$795
          James A. Stempel             US$775
          Michael P. Foradas           US$705
          Nader R. Boulos              US$570
          Ross M. Kwasteniet           US$535
          Kathy Schumacher             US$495
          C. Michelle Mulkern          US$475
          William T. Pruitt            US$395
          Joshua M. Samis              US$375

The Debtors advanced US$367,052 to Kirkland & Ellis in the 90
days prior to the Petition Date, which was either an advance
payment retainer or was utilized to replenish the firm's advance
payment retainer, Mr. Bassewitz says.  Pursuant to the terms of
the parties' engagement letter, the Retainer payments were
earned upon receipt, are property of the firm, and are not held
in a separate account.  As of the Petition Date, the amount of
Kirkland & Ellis' advance payment retainer is approximately
US$115,000.  During the one year prior to the Petition Date, the
firm received a total of US$651,705 in compensation to the
Debtors.

Mr. Stempel, Esq., a partner at Kirkland & Ellis, assures the
Court that his firm is a "disinterested person," as that phrase
is defined in Section 101(14) of the Bankruptcy Code as modified
by Section 1107(b).

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.

No schedule has been set to date for an organizational meeting
that would create an Official Committee of Unsecured Creditors.
The Court recently held that the meeting of creditors pursuant
to Section 341(a) of the Bankruptcy Code will not be convened,
and is canceled, if the Debtors' Plan of Reorganization is
confirmed on or prior to October 16, 2007.  (Bally Total Fitness
Bankruptcy News, Issue No. 3; Bankruptcy Creditors' Services
Inc. http://bankrupt.com/newsstand/or 215/945-7000)


BLOCKBUSTER INC: Inks Acquisition Deal with Movielink
-----------------------------------------------------
Blockbuster Inc. has acquired Movielink LLC, one of the nation's
leading movie download services, in a move to further provide
customers with even more convenient access to home
entertainment.  The acquisition gives Blockbuster access to one
of the largest libraries of downloadable movies and a large
array of television content. Terms of the agreement were not
disclosed.

With thousands of movies and television shows available in its
digital library for downloading, Movielink offers customers the
ability to legally download entertainment content for rental
(VOD) and for purchase (EST).  The service was created in 2002
by Movielink, LLC, a joint venture of Metro-Goldwyn-Mayer
Studios Inc., Paramount Pictures, Sony Pictures Entertainment,
Universal Pictures and Warner Bros. Studios.

The acquisition of Movielink, which has VOD and EST license
agreements with the five founding studios, as well as more than
30 other studios, television-content distributors, and foreign
and independent content providers, enables Blockbuster to offer
consumers downloadable entertainment content via their PCs,
portable devices, television-connected home networks and
approved set-top boxes.

"Blockbuster is committed to keeping pace with the changing
needs of customers by offering them an expanding array of
convenient ways to access entertainment content," said Jim
Keyes, Blockbuster Chairman and CEO.  "Our acquisition of
Movielink, with its associated digital content, is the next
logical step in our planned transformation of Blockbuster.  Now,
in addition to the entertainment content we provide through our
stores and by mail, we have taken an important step toward being
able to make movie downloading conveniently available to
computers, portable devices and ultimately to the television at
home."

"The studios' goal with the Movielink service has always been to
make digital entertainment content more conveniently, more
widely and more securely available to consumers.  This
acquisition should further that goal," said Jim Ramo, CEO of
Movielink from its inception.  "With Blockbuster's ability to
leverage its store network, online assets, and marketing
expertise, Blockbuster should be able to grow the market for
digitally-delivered entertainment content, and we believe that's
good news for consumers and content providers alike."

Blockbuster plans to continue to operate the Movielink service
and to eventually make elements of the service available through
blockbuster.com.

"Thanks to the vision of the participating studios, Movielink
has been at the forefront of the emerging digital media market,"
said Mr. Keyes.  "We are grateful to the studios for entrusting
us with their content, and we look forward to continuing to work
with them to make even more digital content available to a
growing consumer audience."

                     About Movielink LLC

Movielink -- http://www.movielink.com/-- is a leading movie
download service, offering U.S. customers an extensive selection
of new and classic hit movies, foreign films and other hard-to-
find content.  Movielink draws its content offerings from the
vast libraries of Metro-Goldwyn-Mayer Studios, Paramount
Pictures, Sony Pictures Entertainment, Universal Studios, Warner
Bros, Walt Disney Pictures, Miramax, Artisan and others on a
non-exclusive basis.

                    About Blockbuster Inc.

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

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Aug. 8, 2007, Moody's Investors Service downgraded Blockbuster
Inc.'s corporate family rating to Caa1, its senior secured
credit facilities to B3, and speculative grade liquidity rating
to SGL-4.  In addition, Moody's affirmed the senior subordinated
notes rating at Caa2.  Moody's said the rating outlook remains
negative.


CINRAM INTERNATIONAL: Randall Yasny Steps Down as Trustee
---------------------------------------------------------
Cinram International Income Fund disclosed that Randall
Yasny has resigned from his position as a trustee of the Fund,
effective Aug. 8, 2007.  Mr. Yasny has served as a trustee of
the Fund since August 2006 and was a member of the corporate
governance and nominations committee as well as the compensation
committee.  His resignation was prompted by personal and work
obligations.

"Mr. Yasny has been a very important part of Cinram's
development over the last year and his insight will be missed,"
said Henri A. Aboutboul, Chairman of Cinram's Trustees.  "We
thank him for his valuable contribution and wish him much
success in his new endeavors."

Cinram International Inc. (TSX: CRW.UN) - http://www.cinram.com/
-- an indirect wholly owned subsidiary Cinram International
Income Fund, provides pre-recorded multimedia products and
related logistics services.  With facilities in North America
and Europe, Cinram International Inc. manufactures and
distributes pre-recorded DVDs, VHS video cassettes, audio CDs,
audio cassettes and CD-ROMs for motion picture studios, music
labels, publishers and computer software companies around the
world.  The company has sales offices in Mexico.

                        *     *     *

Cintram International Income Fund carries Moody's B1 long-term
corporate family and bank loan debt rating.  Moody's said the
ratings outlook is stable.


MAZDA MOTOR: All-New Mazda Demio Sales Take Off in Japan
--------------------------------------------------------
Mazda Motor Corporation has announced that total orders in Japan
for the all-new Demio (known overseas as the all-new Mazda2)
reached 15,000 units during the first month of sales since its
domestic launch on July 5, 2007.  This result is triple the
monthly target sales volume, demonstrating a positive reception
by Japanese consumers, thanks to the Demio's stylish exterior,
highly competitive cost of ownership and top class fuel
efficiency.

To date, approximately 60 percent of the orders are for the
1.3-liter 13C core grade together with the 13C-V grade, which
achieves class leading 10-15 mode fuel economy of 23 km/L.
Additionally, orders for the SPORT grade are more than double
initial expectations.

The all-new Demio is the first car produced by Mazda to feature
a continuously variable transmission, and models equipped with
the CVT account for over half of the orders.  Sunlight Silver
Metallic, Metropolitan Grey Mica and Icy Blue Metallic have been
the three most popular body colors, with the recommended
Spirited Green Metallic also among the top five.  The largest
customer group has been single people in their 20s and 30s,
followed by married women.  The most preferred factory installed
option has been fully automatic air conditioning with a new
built-in Allergy Buster filter, with orders more than double the
expected rate.

                      About Mazda Motors

Headquartered in Hiroshima Prefecture, in Japan, Mazda Motor
Corporation -- http://www.mazda.co.jp/-- together with its
subsidiaries and associates, is primarily involved in the
manufacture and distribution of automobiles.  The company
manufactures passenger cars and commercial vehicles.  Mazda
Motor distributes its products in both domestic and overseas
markets.  The company has 58 subsidiaries.  It has overseas
operations in the United States, Canada, Mexico, Germany,
Belgium, France, the United Kingdom, Switzerland, Portugal,
Italy, Spain, Austria, Russia, Columbia, New Zealand, Thailand,
Indonesia and China.  The Company has a global network.

                        *     *     *

As reported on April 27, 2007, that Standard & Poor's Ratings
Services raised Mazda Motor Corp.'s long-term corporate credit
rating and the company's long-term senior unsecured debt to:

   * Corporate Credit Rating: BB /Stable/
   * Company's Long-term Senior Unsecured Debt: BB+


MAZDA MOTOR: April-June Profit Drops 63% to JPY2.48 Billion
-----------------------------------------------------------
Mazda Motor Corp. net profit for the quarter ended
June 30, 2007, dropped 63% due to foreign-exchange losses, the
Wall Street Journal reports.

According to Bloomberg News, Mazda Motor's net income fell to
JPY2.48 billion (US$21 million), or JPY1.76 a share, for the
three months ended June 30, from JPY6.61 billion a year earlier.
This despite sales rising 11% to JPY814.29 billion.

The company booked a non-operating loss of JPY4.4 billion due to
the rapid pace of the yen's depreciation, which triggered a loss
from forward-exchange contracts that the company made to hedge
the risk of a hefty rise in the currency, Yoshio Takahashi
writes for WSJ.

Bloomberg explains that Mazda usually hedges transactions
involving the dollar and other foreign currencies six months in
advance.  It had a JPY3.49-billon loss from currency hedges a
year earlier.

"The loss spoiled what Mazda earned from its main business,"
Bloomberg quotes Hitoshi Yamamoto, who manages the equivalent of
US$1 billion in Japanese equities as president of Commerz
International Capital Management (Japan) Ltd. in Tokyo.  "It's
not good, but it's not like Mazda's core business is
deteriorating," he said.

Mazda had a JPY7.89-billon loss in the 2007 first quarter from
wrong-way bets on currency movements, Bloomberg recounts.  That
eroded earnings from higher sales of CX-7 sport-utility vehicles
in the U.S. and Mazda3 compacts in Europe, the report says.

Bloomberg, however, notes that Mazda sees its full-year net
income rising 15% to a record JPY85 billion on sales of
JPY3.32 trillion.  Operating profit in the year ending March 31
may total JPY140 billion, the report cites Mazda as saying.

                      About Mazda Motor

Headquartered in Hiroshima Prefecture, in Japan, Mazda Motor
Corporation -- http://www.mazda.co.jp/-- together with its
subsidiaries and associates, is primarily involved in the
manufacture and distribution of automobiles.  The company
manufactures passenger cars and commercial vehicles.  Mazda
Motor distributes its products in both domestic and overseas
markets.  The company has 58 subsidiaries.  It has overseas
operations in the United States, Canada, Mexico, Germany,
Belgium, France, the United Kingdom, Switzerland, Portugal,
Italy, Spain, Austria, Russia, Columbia, New Zealand, Thailand,
Indonesia and China.  The Company has a global network.

                        *     *     *

As reported on April 27, 2007, that Standard & Poor's Ratings
Services raised Mazda Motor Corp.'s long-term corporate credit
rating and the company's long-term senior unsecured debt to:

   * Corporate Credit Rating: BB /Stable/
   * Company's Long-term Senior Unsecured Debt: BB+


TCL CORP: PC Unit Posts Profit; Rules Out Planned Disposal
----------------------------------------------------------
TCL Corp ruled out plans of selling its PC unit and decided to
bring in a strategic investor after its personal computer
business turned an operating profit in the first half of 2007,
Reuters reports, citing Chairman Li Dongsheng as saying in a
press briefing.

According to Mr. Dongsheng, the unit "had a small operating
profit" in the first half and it does not have immediate need
for funding.

"We will not sell our PC unit, and right now we do not have
plans to bring in strategic investors any more.  We did think
about that earlier... but the plan has been dropped," the
chairman was quoted by the news agency as saying.

Reuters relates that media reports had long speculated that the
company would try to spin off its PC unit and might bring in
outside investors.  China's official Securities Times also
reported that the head of TCL's PC unit had resigned, fuelling
speculation that the company might sell the unit.

The newspaper quoted analysts as saying that the resignation may
have been prompted by TCL's efforts to cut costs at the PC unit,
which lost more than CNY50 million yuan (US$6.61 million) last
year, and by the possibility that the unit could be sold.

Headquartered in Guangdong Province, China, TCL Corporation --
http://www.tcl.com/-- is principally engaged in the
manufacture of TV sets and handset products.  TCL Corp is the
parent of Hong Kong-listed TV maker TCL Multimedia Technology
Holdings Ltd and cellphone maker TCL Communication.

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

TTE Europe SAS, TCL's European unit, filed a declaration of
insolvency on May 24, 2007 in France after it failed to settle a
number of outstanding liabilities.

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


TCL CORP: Posts CNY45.1-Million Net Profit in 2007 First Half
-------------------------------------------------------------
TCL Corp. turned around in the first six months of the year by
posting a net profit of CNY45.1 million, from a loss of
CNY746.61 million a year earlier, thanks to cost cuts which
helped offset the impact of weaker sales, reports say.

Revenue was CNY18.43 billion, a decline of 23.8% from
CNY24.2 billion in the same period last year, the company said
in a filing with the Shenzhen Stock Exchange.

Meanwhile, selling expenses fell to CNY1.914 billion from
CNY2.66 billion a year earlier, and management expenses were
down 30.48% at CNY834.776 million.

In addition, the performance of two major units, Hong Kong-
listed TCL Multimedia and TCL Communication, improved greatly in
the period, Infocast NEws says.  TCL Multimedia narrowed its net
loss to HK$220 million in the first half from HK$1.6 billion a
year earlier, while TCL Communication booked a net profit of
HK$2 million, against a loss of HK$71 million a year earlier.

TCL Corp also expects itself to record a net profit for the
first three quarters of the year.  It posted a net loss of
CNY706.5 million for the first nine months last year.

Headquartered in Guangdong Province, China, TCL Corporation --
http://www.tcl.com/-- is principally engaged in the
manufacture of TV sets and handset products.  TCL Corp is the
parent of Hong Kong-listed TV maker TCL Multimedia Technology
Holdings Ltd and cellphone maker TCL Communication.

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

TTE Europe SAS, TCL's European unit, filed a declaration of
insolvency on May 24, 2007 in France after it failed to settle a
number of outstanding liabilities.

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


SENSATA TECH: Incurs US$44.9 Mln Net Loss in 2007 Second Quarter
----------------------------------------------------------------
Sensata Technologies B.V. posted a net loss of US$44.9 million
on US$345.6 million of net revenues for the three months ended
June 30, 2007, compared to a net loss of US$41.6 million.  The
net revenue represents an increase of US$47.4 million or 15.9
percent over the second quarter of 2006.  Adjusted EBITDA was
US$89.2 million, an increase of US$8.3 million or 10.3 percent
over the second quarter of 2006 adjusted EBITDA.

Quarter ending cash balances grew to US$105.9 million up 18
percent from US$89.8 million at March 31, 2007.

Tom Wroe, Chairman and Chief Executive Officer said, "We
continue to meet or exceed the financial goals that we have set
for the company.  Our long term goal is to grow earnings at a
rate that is the same or faster than net revenue.  We continue
to make progress toward this goal."

                     Recent Developments

On June 8, 2007, the company entered into a definitive Agreement
with Airpax Holdings, Inc., a manufacturer of components and
systems for power protection, sensing and control applications.

The US$276 million purchase, plus fees and expenses, was
completed on July 27, 2007, and affirms Sensata's position as a
leading global supplier of sensors and controls across a broad
array of markets and applications.  Sensata closed the
acquisition with a combination of cash and new borrowings.  A
new senior subordinated term loan was issued for approximately
US$195 million and the balance was funded with cash from
operations.

Mr. Wroe added, "This transaction gives us leading customer
positions in electrical protection for high-growth network and
telecom power and high-reliability mobile power applications.
The transaction further secures Sensata's position as a leading
designer and manufacturer of sensing and electrical protection
solutions for the residential, industrial, heating, ventilation,
air-conditioning, military and mobile markets.  The purchase
also offers opportunities for operational synergies across both
organizations."

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

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Aug. 1, 2007, Moody's Investors Service affirmed Sensata
Technologies B.V.'s B2 corporate family rating in response to
the company's issuance of EUR141 million (US$195 million) senior
subordinate term loan and use of cash on hand to acquire Airpax
Holdings, Inc. for US$276 million, including fees and expenses.


WARNER MUSIC: June 30 Balance Sheet Upside-Down by US$23 Million
----------------------------------------------------------------
Warner Music Group Corp. reported on Aug. 7, 2007, its third
quarter results for the third quarter ended June 30, 2007.

Net loss was US$17 million for the quarter.  Adjusted to exclude
non-recurring items, net loss was US$29 million for the quarter.
Net loss in the third quarter of fiscal 2006 was US$14 million.

Total revenue of US$804 million for the third quarter of fiscal
2007 decreased 2% from the prior-year quarter, or 5% on a
constant-currency basis.

Digital revenue increased to US$119 million, or 15% of total
revenue in the quarter, up 29% from US$92 million in the prior-
year quarter and up 7% sequentially from US$111 million in the
second quarter of fiscal 2007.

Operating income increased to US$45 million in the quarter
compared to US$28 million in the prior-year quarter.  Adjusted
to exclude US$38 million in expenses related to the company's
realignment initiatives, a US$52 million benefit related to the
company's settlement with Bertelsmann AG regarding Napster and
US$8 million in expenses incurred in connection with the
potential acquisition of EMI Group plc, operating income for the
quarter increased 39% to US$39 million.

Operating income before depreciation and amortization (OIBDA)
increased to US$107 million from US$86 million in the prior-year
quarter.  Adjusted to exclude non-recurring items, OIBDA for the
quarter increased 17% to US$101 million.

"We are transforming Warner Music Group to a music-based content
company with a more comprehensive approach to participating in
artist revenue streams to drive our long-term success," said
Edgar Bronfman, Jr., Warner Music Group's chairman and chief
executive officer.  "Despite a challenging industry environment,
we achieved several milestones this quarter which validate our
A&R strategy.  According to sales data released this quarter,
our global market share for calendar year 2006 improved, moving
us up to the third-largest global recorded music company.  We
also reached a WMG 10-year record for U.S. album share for both
the quarter and first half of 2007."

Michael Fleisher, Warner Music Group's executive vice president
and chief financial officer, added: "Given our ongoing focus on
financial discipline, our realignment initiatives announced last
quarter remain on track for total one-time restructuring and
implementation charges in the range of US$65 million to US$80
million by the completion of our fiscal year 2007."

                   Third-Quarter Results

For the third quarter of fiscal 2007, revenue slipped 2% to
US$804 million from US$822 million in the same period last year,
or 5% on a constant-currency basis.  This decline was driven by
a challenging Recorded Music industry environment as the shift
in consumption patterns from physical sales to new forms of
digital music continues.  Declines in the company's physical
Recorded Music revenue were only partially offset by increases
in Music Publishing and digital Recorded Music revenue.
Domestic revenue was down 1% while international revenue
declined 4%, or 9% on a constant-currency basis.

Operating income for the quarter rose to US$45 million from
US$28 million in the prior-year quarter and operating margin was
up 2.2 percentage points to 5.6%.  Adjusted to exclude non-
recurring items, operating income for the quarter rose 39% to
US$39 million and operating margin was up 1.5 percentage points
to 4.9%.

OIBDA for the quarter rose to US$107 million from US$86 million
in the prior-year quarter and OIBDA margin increased 2.8
percentage points to 13.3%.  Adjusted to exclude non-recurring
items, OIBDA for the quarter grew 17% to US$101 million and
OIBDA margin widened 2.1 percentage points to 12.6%.  The
increase in OIBDA margin this quarter reflected cost-management
initiatives and a more profitable revenue mix.  In addition, the
company realized a temporary benefit from its previously
announced realignment plan as it continues to make investments
focused on new business initiatives.

The company reported a cash balance of US$396 million, total
long-term debt of US$2.3 billion and net debt (total long-term
debt minus cash) of US$1.9 billion, all as of June 30, 2007.

For the quarter, net cash provided by operating activities was
US$90 million compared to US$18 million in the comparable fiscal
2006 quarter.  Free cash flow (calculated by taking cash flow
from operations less capital expenditures and cash paid or
received for investments) was US$57 million, compared to
negative US$33 million in the comparable fiscal 2006 quarter.
Unlevered after-tax cash flow (calculated by excluding cash
interest paid from free cash flow) was US$105 million, which
includes net cash from the non-recurring items, compared to
unlevered after-tax cash flow of US$14 million in the comparable
fiscal 2006 quarter.

At June 30, 2007, the company's consolidated balance sheet
showed US$4.55 billion in total assets, US$4.58 billion in total
liabilities, resulting in a US$23 million total stockholders'
deficit.

The company's consolidated balance sheet at June 30, 2007, also
showed strained liquidity with US$1.27 billion in total current
assets available to pay US$1.83 billion in total current
liabilities.

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?2233

                     Non-Recurring Items

On May 8, 2007, the company announced a realignment plan to
implement changes intended to better align the company's
workforce with the changing nature of the music industry and to
improve financial flexibility by consolidating and streamlining
the structure of the company's businesses.  Approximately US$38
million of non-recurring costs were incurred in the third
quarter of fiscal 2007, consisting of US$32 million in
restructuring costs and US$6 million in non-recurring severance
and IT outsourcing related charges reflected in selling, general
and administrative expenses. Of the US$38 million of non-
recurring costs, US$33 million were incurred by the Recorded
Music division, US$1 million were incurred by the Music
Publishing division and US$4 million were corporate costs.  This
quarter's restructuring and severance charges related primarily
to redirecting resources to growth areas of the company's
businesses and eliminating duplicative positions.

On April 24, 2007, the company and Bertelsmann AG jointly
announced a settlement of contingent claims held by the company
relating to Bertelsmann AG's relationship with Napster in 2000-
2001.  The settlement covers the resolution of the related legal
claims against Bertelsmann AG by the company's Recorded Music
and Music Publishing businesses.  As part of the settlement, the
company received US$110 million, which was allocated 90% to
Recorded Music and 10% to Music Publishing.  Net of amounts
payable to artists and songwriters, the company recorded other
income of US$52 million in the third quarter of fiscal 2007
related to this settlement.  Of the US$52 million, US$49 million
went to the Recorded Music division and US$3 million went to the
Music Publishing division.  The balance of the US$110 million,
or US$58 million, is being shared with the company's recording
artists and songwriters.

In the third quarter of fiscal 2007, the company expensed
US$8 million in costs associated with the potential acquisition
of EMI Group plc, all at the corporate level.

These non-recurring items had a related tax benefit of US$6
million.

                  About Warner Music Group

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

                        *     *     *

As reported in the Troubled Company Reporter on July 23, 2007,
Standard & Poor's Ratings Services said that its ratings for
Warner Music Group, including the 'BB-' corporate credit rating,
remain on CreditWatch with negative implications.  The ratings
have been on CreditWatch because of S&Ps' concern about the
company's interest in EMI Group PLC.  S&P still see uncertainty
surrounding management's alternate strategies following WMG's
statement that it will not submit a competing bid for EMI.




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


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.


ALITALIA SPA: Chairman Eyes Shakeup of AZ Servizi Unit
------------------------------------------------------
Alitalia S.p.A. chairman Maurizio Prato plans to restructure its
spin off unit AZ Servizi as part of the business plan to
turnaround the ailing national carrier, Thomson Financial
reports.

Mr. Prato, who chairs both companies owning AZ Servizi --
Alitalia (49%) and Fintecna S.p.A. (51%) -- sees the firm as a
"big problem" for the carrier since its prices for services are
very high and above market prices, Thomsom Financial relates
citing a union leader.

The union leader told Thomsom Financial that AZ Servizi's prices
vary from double for costs of landing a plane, to 8-to-9 times
for call center costs.

Mr. Prato, the union leader told Thomsom Financial, eyes to
reacquire parts of AZ Servizi back to Alitalia, like maintenance
services and handling activities, after the units have been
restructured.  Mr. Prato also plans to sell parts of AZ Servizi,
like airport handling, computer services, and call center
activities, the report adds.

"[Mr. Prato's] business plan is make the airline sustainable,"
the union said, adding that AZ Servizi's restructuring would be
done before the Italian government sells its Alitalia stake to
another investor.

Mr. Prato's business plan also includes cutting some long-haul
flights from Milan's Malpensa airport and adding more profitable
point-to-point medium-haul flights.

                        About Alitalia

Headquartered in Rome, Italy, Alitalia S.p.A. --
http://www.alitalia.it/-- provides air travel services for
passengers and air transport of cargo on national, international
and inter-continental routes.  The Italian government owns 49.9%
of Alitalia.

Despite a EUR1.4 billion state-backed restructuring in 1997,
Alitalia posted net losses of EUR256 million and EUR907 million
in 2000 and 2001 respectively.  Alitalia posted EUR93 million in
net profits in 2002 after a EUR1.4 billion capital injection.
The carrier booked annual net losses of EUR520 million in 2003,
EUR813 million in 2004, and EUR168 million in 2005.


DOE RUN: Hires 200 Former Outsourcers in Peru
---------------------------------------------
Doe Run Peru has hired 200 former outsourcers in Peru in
anticipation of possible labor rulings by authorities, Peruvian
government news daily El Peruano reports.

Business News Americas relates that the Peruvian labor ministry
has been investigating the hiring practices of metals and mining
firms and their observance of the regulations governing the
balance between directly hired employees and subcontracted
workers.

The hiring of the workers is due to the investigation, El
Peruano states, citing the national director of labor
inspections Jorge Villasante.

Based in St. Louis, Mo., The Doe Run Company --
http://www.doerun.com/-- is a privately held natural resources
company dedicated to environmentally responsible mineral
production, metals fabrication, recycling and reclamation.  The
company and its subsidiaries deliver products and services
needed to provide power, protection and convenience through
premium products and associated metals including lead, zinc,
copper, gold and silver.  As the operator of one of the world's
only multi-metal facilities and the Americas' largest integrated
lead producer, Doe Run employs more than 5,000 people, with U.S.
operations in Missouri, Washington and Arizona, and Peruvian
operations in Cobriza and La Oroya.

Doe Run Peru S.R.L., an indirect Peruvian subsidiary, operates a
smelter in La Oroya, Peru, one of the largest polymetallic
processing facilities in the world, producing an extensive
product mix of non-ferrous and precious metals, including
silver, copper, zinc, lead and gold.  Doe Run Peru also has a
copper mining and milling operation in Cobriza, Peru in the
region of Huancavelica, which is approximately 200 miles
southeast of La Oroya in Peru.

              Doe Run Peru Going Concern Doubt

As reported in the Troubled Company reporter-Latin America on
Aug. 10, 2006, Doe Run Peru has significant capital requirements
under environmental commitments and guarantees and substantial
contingencies related to taxes and has significant debt service
obligations under the revolving credit facility, each of which,
if not satisfied, could result in a default under Doe Run Peru's
credit agreement and collectively raise substantial doubt about
Doe Run Peru's ability to continue as a going concern.

Doe Run Peru continues to have substantial cash requirements in
the future, including the maturity of the revolving credit
facility on Sept. 22, 2006, and significant capital requirements
under environmental commitments.  In addition, there are
substantial contingencies related to taxes.

The Doe Run Peru Revolving Credit Facility expires on
Sept. 22, 2006, and will require negotiations to extend its
terms.  There can be no assurance that Doe Run Peru will be
successful in extending the existing credit agreement or
negotiating a new agreement, or if it is successful, that the
extended or new credit agreement would be at terms that are
favorable to Doe Run Peru.

Any default under the requirements of the Environmental
Remediation and Management Program could result in a default
under the Doe Run Peru Revolving Credit Facility.  A default
under the requirements of the Doe Run Peru Revolving Credit
Facility results in defaults under the Doe Run Revolving Credit
Facility and the indenture governing the bonds.




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


HORIZON LINES: Paying US$0.11 Per Share Dividend on Sept. 15
------------------------------------------------------------
Horizon Lines Inc.'s Board of Directors has voted to declare a
cash dividend on its outstanding shares of common stock of
US$0.11 per share, payable on Sept. 15, 2007, to all
stockholders of record as of the close of business on
Sept. 1, 2007.

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

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
July 31, 2007, Standard & Poor's Ratings Services assigned its
'B' rating to Horizon Lines Inc.'s (BB-/Stable--) proposed
US$300 million senior convertible notes offering due 2012.
Proceeds from the notes offering, combined with proceeds from a
planned new credit facility, will be used primarily to repay its
outstanding 9% senior notes due 2012 and its 11% senior discount
notes due 2013.  The company launched a tender offer for these
notes on July 17, 2007.  The tender offer expires on
July 30, 2007.  The Charlotte, North Carolina-based shipping
company currently has about US$800 million of lease-adjusted
debt.


MUSICLAND HOLDING: Buena Vista Seeks to Recover US$25 Million
-------------------------------------------------------------
Seven secured trade creditors seek to recover US$25,000,000,
which is alleged to be wrongfully paid to Harris N.A. and its
putative agent, Wachovia Bank, N.A.

The Trade Creditors are:

  * Buena Vista Home Entertainment, Inc.,
  * Cargill Financial Services International, Inc.,
  * Hain Capital Group, LLC,
  * Paramount Pictures Corporation,
  * Twentieth Century Fox Home Entertainment LLC,
  * UBS Willow Fund, LLC, and
  * Varde Investment Partners, L.P.

The Trade Creditors were supplying Musicland Holding Corp. and
its debtor-affiliates, on credit, with music CDs, DVDs, and
similar and related merchandise for sale at the Debtors' retail
stores.

On August 11, 2003, the Debtors and Congress Financial
Corporation entered into an agreement in which Harris N.A., and
its agent, Wachovia Bank, will provide the Debtors with a
revolving credit of up to US$200,000,000.

The Revolving Lenders' first priority lien on the Debtors'
assets secure the Revolving Credit.  The Lien, however, extended
only to obligations related to existing and future loans made
"on a revolving basis," and letter of credit accommodations.

In November 2003, the Debtors also entered into an agreement
with the Trade Creditors to induce them to continue supplying
inventory to the Debtors' stores, pursuant to a security
agreement entered into by and between the Debtors and The Bank
of New York, as collateral agent.

In return, the Trade Creditors were granted lien in the Debtors'
inventory and proceeds.

The Inventory Lien was junior only to the security interests and
liens of Congress Financial, and the benefit of the Revolving
Lenders pursuant to the Congress Facility.

Concurrent with the Security Agreement, the Intercreditor
Agreement was entered into among BoNY, in its capacity as agent
for the Trade Creditors, and Wachovia and Congress Financial, as
agent for the Revolving Lenders.

Under the Intercreditor Agreement, the Trade Creditors are third
party beneficiaries.

The Intercreditor Agreement also provides for the subordination
of the Trade Creditors' Inventory Lien to the lien of the
Revolving Lenders solely to the extent it arose from the
Revolving Credit Facility, and not to the Debtors' affiliates.
It, however, does not subordinate the Inventory Lien to any lien
securing term loan debt or financing other than on a revolving
basis.

In 2005, the Debtors asked the Revolving Lenders to increase
availability under the Revolving Credit Facility.  The Revolving
Lenders, however, refused to grant the Debtors' request.  Sun
Music LLC, the Debtors' parent, also did not provide additional
capital.

Harris would not extend the Revolving Credit Facility under
terms of the 2003 Revolving Credit Agreement.  At Sun's request,
Harris, however, agreed to make a US$25,000,000 term loan to the
Debtors.  Under the Term Loan, the repayment of the Harris Loan
was guaranteed by Sun.

The Revolving Credit Facility and the Harris Term Loan were to
be treated as separate credit facilities, Alan J. Kornfeld,
Esq., at Pachulski Stang Ziehl Young Jones & Weintraub LLP, in
New York, relates.   Only interest payments were required to be
made to Harris monthly because the Revolving Lenders' claims
enjoy first preference over the Harris Term Loan.

However, Sun instructed the Debtors to repay the Harris Term
Loan early before the Revolving Loan were repaid, Mr. Kornfeld
contends.  The Harris Term Loan was repaid in full in December
2006.  The source of the repayment was the Trade Creditors'
collateral, Mr. Kornfeld argues.

In effect, the Trade Creditors' claims are substantially
undersecured by their Inventory Lien, Mr. Kornfeld maintains.

Mr. Kornfeld maintains that Wachovia violated the Trade
Creditors' rights under the Intercreditor Agreement by treating
Harris as if it were a Revolver lender secured by a senior lien.

Mr. Kornfeld adds that Harris also tortiously interfered with
the Trade Creditors' rights under the Intercreditor Agreement
and the Security Agreement, and when it was repaid, converted
more than US$25,000,000 in the Trade Creditors' collateral and
was unjustly enriched.

Accordingly, the Trade Creditors ask the U.S. Bankruptcy Court
for the Southern District of New York to:

  (a) award them compensatory damages in an amount to be
      determined at trial but in all event no less than
      US$25,000,000, plus pre-judgment interest, reasonable
      attorneys' fees and costs of the lawsuit; and

  (b) award them punitive and exemplary damages.

                   About Musicland Holding

Headquartered in New York, New York, Musicland Holding Corp., is
a specialty retailer of music, movies and entertainment-related
products.  The Debtor and 14 of its affiliates filed for chapter
11 protection on Jan. 12, 2006 (Bankr. S.D.N.Y. Lead Case No.
06-10064).  James H.M. Sprayregen, Esq., at Kirkland & Ellis,
represents the Debtors in their restructuring efforts.   Mark T.
Power, Esq., at Hahn & Hessen LLP, represents the Official
Committee of Unsecured Creditors.  At March 31, 2007, the
Debtors disclosed US$20,121,000 in total assets and
US$321,546,000 in total liabilities.

On May 12, 2006, the Debtors filed their Joint Plan of
Liquidation with the Court.  On Sept. 14, 2006, they filed an
amended Plan and a Second Amended Plan on Oct. 13, 2006.  The
Court approved the adequacy of the Amended Disclosure Statement
on Oct. 13, 2006.  (Musicland Bankruptcy News, Issue No. 35;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


MUSICLAND HOLDING: Harris Wants Buena Vista Complaint Dismissed
---------------------------------------------------------------
Harris, N.A., asks the U.S. Bankruptcy Court for the Southern
District of New York to dismiss the Complaint filed by Buena
Vista Home Entertainment, Inc., and certain other trade
creditors in relation to a US$25,000,000 term loan Harris
extended to Musicland Holding Corp. and its debtor-affiliates.

Robert D. Piliero, Esq., at Piliero Goldstein Kogan & Miller
LLP, in New York, asserts that the Complaint should be dismissed
as to Harris because the Trade Creditors failed to state a claim
upon which relief may be granted.

The Buena Vista Plaintiffs, who are trade creditors of the
Debtors, entered into an Intercreditor Agreement dated November
2003 with certain lenders who extended a revolving loan to the
Debtors.  The Intercreditor Agreement was executed by Bank of
New York, as agent for the Trade Creditors, and Congress
Financial Corporation, as agent for the Revolving Loan Lenders.
Wachovia, N.A., is the successor to Congress Financial.

Mr. Piliero contends that the Intercreditor Agreement do not
contain any limitations respecting amendment of the Revolving
Loan Agreement and do not contain any restrictions as to:

  -- who would extend credit or loan money to the Debtors under
     the Loan Agreement at any time after it was executed; and

  -- the types of loans or extensions of credit which could be
     extended to the Debtors under the Loan Agreement.

In August 2005, Harris lent US$25,000,000 to the Debtors under a
term loan and through an amendment to the Revolving Loan
Agreement.  Harris was later repaid.

The Trade Creditors previously alleged that Wachovia breached
the Intercreditor Agreement by entering into an amendment of the
Revolving Loan Agreement and allowing the Debtors to repay the
Harris Loan.  The Trade Creditors also alleged that the same
acts gave rise to claims of breach of the covenant of good faith
and fair dealing, conversion, and tortious interference with a
Trade Security Agreement between the Trade Creditors and the
Debtors.

Each of the claims asserted under the Complaint is contradicted
by the clear and unambiguous terms of the contracts attached to
the Complaint and fails to state viable causes of action, Mr.
Piliero argues.

"In particular, the Intercreditor Agreement made it clear that
the liens of the Revolving [Lenders] had priority over and
trumped the liens of the [Trade Creditors] and their agent under
a certain 'Security Agreement,'" Mr. Piliero maintains.

Thus, Harris' receipt of payment was not in contravention of the
Intercreditor Agreement or the priorities created under that
Agreement, Mr. Piliero says.

Mr. Piliero also contends that:

  1. Harris cannot have tortiously interfered with Wachovia's
     performance of any contract as the Harris Amendment was
     permitted under the terms of the Intercreditor Agreement
     and there was no breach;

  2. Neither Harris nor Wachovia could have tortiously
     interfered with the Trade Security Agreement as the payment
     made to Harris was authorized by and consistent with the
     terms of the Intercreditor Agreement;

  3. There could have been no conversion as Harris was entitled
     by the contract provisions to receive the loan repayment
     that it obtained; and

  4. Harris' receipt of payment cannot constitute unjust
     enrichment because the lender received what it was entitled
     to receive under the Amendment and the Intercreditor
     Agreement.

               Wachovia Supports Harris' Stand

Wachovia Bank asserts that its actions were not only permitted
by the contracts' express language, but were also consented to
by the Trade Creditors and their predecessors.

Thus, Wachovia contends that the Trade Creditors have no factual
or legal basis to assert a breach of contract claim or any other
claim against it.

"The [Trade Creditors'] claims are nothing more than an
impermissible attempt to have th[e] Court rewrite the contracts'
unambiguous terms for [their] benefit and to Wachovia's
substantial detriment," Richard G. Haddad, Esq., at Otterbourg,
Steindler, Houston & Rosen, P.C., in New York, argues.

When considered with the express terms of the subject contracts,
including the Intercreditor Agreement and the Trade Security
Agreement, it is clear that the Trade Creditors' claims are
meritless and that dismissal is warranted, Mr. Haddad
emphasizes.

Wachovia agrees with Harris' arguments, disputing the
allegations asserted under the Trade Creditors' Complaint.

          Trade Creditors Oppose Motion to Dismiss

Plaintiffs Buena Vista Home Entertainment, Inc., Cargill
Financial Services International Inc., Hain Capital Group, LLC,
and certain trade creditors inform the Court that they bargained
for a lien that was subordinate only to obligations under the
Debtors' existing revolving credit facility.

"[That] lien was leapfrogged when Wachovia, the revolver agent,
agreed to use the revolver lien to secure an entirely different
kind of obligation, a US$25 million term loan by Harris," Alan
J. Kornfeld, Esq., at Pachulski Stang Ziehl Young Jones &
Weintraub LLP, in New York, asserts.

Harris was not participating in or refinancing the revolving
loans, but making a type of loan that was not contemplated or
even permitted under the definitions of the Revolving Loan
Agreement as it existed when the Intercreditor Agreement was
entered, Mr. Kornfeld argues.  "Wachovia was required to rewrite
basic definitions and permutate the Revolving Loan Agreement to
provide Harris with a lien superior to that of [the Trade
Creditors."

Mr. Kornfeld clarifies that the Trade Creditors were
subordinated only to the "Revolving Loan Debt" held by
"Revolving Loan Creditors."  Under the Revolving Loan Agreement,
Revolving Loan Debt was defined to consist of revolving loans
exclusively, and new lenders could not become Revolving Loan
Creditors except by acquiring uniform participation interests in
the revolver.  The agreements cannot be read to encompass
subordination to the Term Loan, Mr. Kornfeld points out.

Wachovia and Harris, Mr. Kornfeld adds, are not entitled to
defeat the Trade Creditors' right under the Intercreditor
Agreement by restructuring the Revolving Loan Agreement solely
to extend loan priority to a non-participant term lender.

The Trade Creditors reiterate that Wachovia and Harris
intentionally interfered with their contractual relations with
respect to the Intercreditor Agreement and the Trade Security
Agreement.

The Trade Creditors also aver that Harris was paid from the
proceeds of their collateral and thus converted property in
which they continue to hold a security interest.

Mr. Kornfeld adds that dismissal of the Claim for unjust
enrichment would be premature until the validity of the contract
is established.

                   About Musicland Holding

Headquartered in New York, New York, Musicland Holding Corp., is
a specialty retailer of music, movies and entertainment-related
products.  The Debtor and 14 of its affiliates filed for chapter
11 protection on Jan. 12, 2006 (Bankr. S.D.N.Y. Lead Case No.
06-10064).  James H.M. Sprayregen, Esq., at Kirkland & Ellis,
represents the Debtors in their restructuring efforts.   Mark T.
Power, Esq., at Hahn & Hessen LLP, represents the Official
Committee of Unsecured Creditors.  At March 31, 2007, the
Debtors disclosed US$20,121,000 in total assets and
US$321,546,000 in total liabilities.

On May 12, 2006, the Debtors filed their Joint Plan of
Liquidation with the Court.  On Sept. 14, 2006, they filed an
amended Plan and a Second Amended Plan on Oct. 13, 2006.  The
Court approved the adequacy of the Amended Disclosure Statement
on Oct. 13, 2006.  (Musicland Bankruptcy News, Issue No. 35;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


NUTRITIONAL SOURCING: Organizational Meeting Set for Aug. 13
------------------------------------------------------------
The U.S. Trustee for Region 3, will hold an organizational
meeting to appoint an official committee of unsecured creditors
in Nutritional Sourcing Corporation and its debtor-affiliates'
chapter 11 cases at 11:00 a.m., on Aug. 13, 2007, at Room 5209,
J. Caleb Boggs Federal Building, 844 North King Street, in
Wilmington, Delaware.

The sole purpose of the meeting will be to form a committee or
committees of unsecured creditors in the Debtors' cases.  The
meeting is not the meeting of creditors pursuant to Section 341
of the Bankruptcy Code.  However, a representative of the Debtor
will attend and provide background information regarding the
cases.

Creditors interested in serving on a Committee should complete
and return to the U.S. Trustee a statement indicating their
willingness to serve on an official committee.

Official creditors' committees, constituted under Section 1102
of the Bankruptcy Code, ordinarily consist of the seven largest
creditors who are willing to serve on a committee.  In some
Chapter 11 cases, the U.S. Trustee is persuaded to appoint
multiple creditors' committees.

Official creditors' committees have the right to employ legal
and accounting professionals and financial advisors, at the
Debtors' expense.  They may investigate the Debtors' business
and financial affairs.  Importantly, official committees serve
as fiduciaries to the general population of creditors they
represent.  Those committees will also attempt to negotiate the
terms of a consensual Chapter 11 plan -- almost always subject
to the terms of strict confidentiality agreements with the
Debtors and other core parties-in-interest.  If negotiations
break down, the Committee may ask the Bankruptcy Court to
replace management with an independent trustee.  If the
Committee concludes that the reorganization of the Debtors is
impossible, the Committee will urge the Bankruptcy Court to
convert the Chapter 11 cases to a liquidation proceeding.

Based in Pompano, Florida, Nutritional Sourcing Corp., fdba
Pueblo Xtra International, Inc. -- http://www.puebloxtra.com/--
owns and operates supermarkets and video rental shops in Puerto
Rico and the US Virgin Islands.  The company and two affiliates,
Pueblo International, L.L.C., and F.L.B.N., L.L.C., filed for
chapter 11 protection on Aug. 3, 2007 (Bankr. D. Del. Case Nos.
07-11038 through 07-11040).  When the Debtors filed for
protection from their creditors, they listed estimated assets
and debts between US$1 million and US$100 million.


NUTRITIONAL SOURCING: Has Until Oct. 2 to File Schedules
--------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware gave
Nutritional Sourcing Corporation and its debtor-affiliates until
60 days of their bankruptcy filing or Oct. 2, 2007, to file
their schedules of assets and liabilities and statements of
financial affairs.

The Debtors told the Court that they have creditors and parties-
in-interest in excess of 6,500.  The Debtors relates that they
have not been able to have the opportunity to gather the
necessary information to prepare their schedules and statements
citing:

    * the size and complexity of their businesses;

    * certain prepetition invoices have not been received or
      entered into their financial systems; and

    * they have been working diligently to complete certain
      asset sales.

Based in Pompano, Florida, Nutritional Sourcing Corp., fdba
Pueblo Xtra International, Inc. -- http://www.puebloxtra.com/--
owns and operates supermarkets and video rental shops in Puerto
Rico and the US Virgin Islands.  The company and two affiliates,
Pueblo International, L.L.C., and F.L.B.N., L.L.C., filed for
chapter 11 protection on Aug. 3, 2007 (Bankr. D. Del. Case Nos.
07-11038 through 07-11040).  When the Debtors filed for
protection from their creditors, they listed estimated assets
and debts between US$1 million and US$100 million.


NUTRITIONAL SOURCING: Wants Kay Scholer as Bankruptcy Counsel
-------------------------------------------------------------
Nutritional Sourcing Corporation and its debtor-affiliates ask
the U.S. Bankruptcy Court for the District of Delaware for
permission to employ Kay Scholer LLC as their bankruptcy
counsel.

Kay Scholer will:

    a. advise the Debtors with respect to their rights, powers
       and duties as debtors and debtors-in-possession in the
       continued management and operation of their business and
       properties;

    b. attend meetings and negotiate with representatives of
       creditors and other parties-in-interest;

    c. advise and consult the Debtors regarding the conduct of
       the cases, including all of the legal and administrative
       requirements of operating in chapter 11;

    d. advise the Debtors on matters relating to the evaluation
       of the assumption, rejection or assignment of unexpired
       leases and executory contracts;

   e. advise the Debtors with respect to legal issues arising in
       or relating to the Debtors' ordinary course of business,
       including attendance at senior management meetings,
       meetings with the Debtors' financial advisors, meetings
       of the board of directors and committees, and advice on
       employee, workers' compensation, employee benefits,
       executive compensation, tax, banking, insurance,
       securities, corporate, business operation, contracts,
       joints ventures, real property, press or public affairs,
       litigation and regulatory matters, and advise the Debtors
       with respect to continuing disclosure and reporting
       obligations if any, under securities laws;

    f. take all necessary action to protect and preserve the
       Debtors' estates, including the prosecution of actions on
       their behalf, the defense of any actions commenced
       against those estates, negotiations concerning all
       litigation in which the debtors may be involved and
       objections to claims filed against the estates;

    g. advise the Debtors with respect to the sale of their
       assets;

    h. negotiate and prepare the Debtors' plan of
       reorganization, disclosure statement and all related
       agreements or documents and take any necessary action on
       behalf of the Debtors to obtain confirmation of the plan;

    i. prepare on the Debtors' behalf all petitions, motions,
       applications, answers, orders, reports, and papers
       necessary to the administration of their estates;

    j. attend meetings with third parties and participate in
       negotiations with respect to these matters;

    k. appear before the Court, any appellate courts, and the
       Office of the U.S. Trustee, and protect the interests of
       the Debtors' estates before these courts and the Office
       of the U.S. Trustee; and

    l. perform all other necessary legal services and provide
       all other necessary legal advice to the Debtors in
       connection with their chapter 11 cases to bring the cases
       to a conclusion.

The Debtors disclose that professionals of the firm bill:

             Designation                    Hourly Rate
             -----------                    -----------
             Partners                     US$570 - US$830
             Counsel                      US$525 - US$625
             Associates                   US$255 - US$595
             Legal Assistants             US$130 - US$255

Michael B. Solow, Esq., a member at Kay Scholer, assured the
Court that firm does not represent any interest adverse to the
Debtor or its estate.

Based in Pompano, Florida, Nutritional Sourcing Corp., fdba
Pueblo Xtra International, Inc. -- http://www.puebloxtra.com/--
owns and operates supermarkets and video rental shops in Puerto
Rico and the US Virgin Islands.  The company and two affiliates,
Pueblo International, L.L.C., and F.L.B.N., L.L.C., filed for
chapter 11 protection on Aug. 3, 2007 (Bankr. D. Del. Case Nos.
07-11038 through 07-11040).  When the Debtors filed for
protection from their creditors, they listed estimated assets
and debts between US$1 million and US$100 million.




=================================
T R I N I D A D   &   T O B A G O
=================================


MIRANT CORP: Settles 2006 Pepco Disputes, Gains US$370 Million
--------------------------------------------------------------
Mirant Corporation has settled the challenge to its 2006
settlement of its disputes with Potomac Electric Power Company.
The 2006 Pepco settlement therefore will become effective in the
third quarter of 2007, resulting in a 2007 pre-tax book gain of
approximately US$370 million and an estimated federal tax
deduction of approximately US$600 million related to the
distribution of Mirant common shares to Pepco and to a
supplemental distribution to other claims holders in Mirant's
bankruptcy.

The 2006 Pepco settlement, once effective, will resolve all
remaining disputes between Pepco and Mirant in Mirant's
bankruptcy proceedings and will end Mirant's obligations to make
any further payments under out-of-market electricity supply
contracts for which Mirant became responsible in connection with
its purchase of Pepco's generation assets in 2000.

Mirant also will receive from Pepco cash reimbursements of
US$70 million for an advance payment made by Mirant in 2006
under the 2006 Pepco settlement and approximately US$36 million
for amounts paid by Mirant related to the out-of-market
contracts since May 31, 2006.

Pepco will receive a claim in Mirant's bankruptcy proceedings
for US$520 million.  To satisfy that claim, Mirant will
distribute to Pepco shares reserved by Mirant under its Plan of
Reorganization to address unresolved claims.  The exact number
of shares to be distributed will be determined by Mirant after
the 2006 Pepco settlement becomes effective and will be based
upon the then-current share price.

The challenge to the 2006 Pepco settlement was brought by some
holders of claims in Mirant's bankruptcy proceedings.  Both the
Bankruptcy Court and the U.S. District Court approved the 2006
Pepco settlement, and the challengers appealed to the United
States Court of Appeals for the Fifth Circuit.  Mirant and those
challengers have reached a settlement and the parties shortly
will request that the Fifth Circuit dismiss the appeal.  Upon
the dismissal, the 2006 Pepco settlement will become effective.

Under the settlement reached with the claims holders, once the
2006 Pepco settlement has become effective and Mirant has
distributed to Pepco the shares due it, Mirant will make a
supplemental distribution under the Plan of all but
approximately 1 million of the reserved shares that remain after
the distribution of shares is made to Pepco on a pro rata basis
to the holders of allowed Mirant Debtor Class 3 - Unsecured
Claims in its bankruptcy proceedings.

Calculated based upon the closing price for Mirant's common
stock on Aug. 7, 2007, of US$39.63 per share, the number of
reserved shares to be distributed to Pepco under the 2006 Pepco
settlement would be approximately 13.5 million shares and the
number of shares to be distributed in the supplemental
distribution under the Plan would be approximately 6.3 million
shares.

These are estimates and the actual amounts of the shares
included in each of the two distributions will depend on the
closing price of Mirant's common stock on the date on which the
shares are distributed to Pepco.  Mirant expects that date to be
within two weeks of the Fifth Circuit's order dismissing the
pending appeal.

Regardless of variances in the closing price of Mirant's common
stock, the total number of reserved shares included in both the
distribution to Pepco and the supplemental distribution will be
approximately 19.8 million shares.  Mirant expects to make the
supplemental distribution of shares to holders of allowed Mirant
Debtor Class 3 - Unsecured Claims shortly after the number of
shares to be distributed to Pepco is set in accordance with
the 2006 Pepco settlement.

The "reserved" shares, including the shares to be distributed
either to Pepco or as part of the supplemental distribution,
have been issued and included in the calculation of shares
outstanding and earnings per share since the company emerged
from bankruptcy on Jan. 3, 2006.  As a result, the distributions
to Pepco and holders of allowed Mirant Debtor Class 3 -
Unsecured Claims will not dilute current shareholders.

                      About Mirant Corp.

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

Mirant Corporation filed for chapter 11 protection on
July 14, 2003 (Bankr. N.D. Tex. 03-46590), and emerged under the
terms of a confirmed Second Amended Plan on Jan. 3, 2006.
Thomas E. Lauria, Esq., at White & Case LLP, represented the
Debtors in their successful restructuring.  When the Debtors
filed for protection from their creditors, they listed
US$20,574,000,000 in assets and US$11,401,000,000 in debts.  The
Debtors emerged from bankruptcy on Jan. 3, 2006.  On March 7,
2007, the Court entered a final decree closing 46 Mirant cases.

Mirant NY-Gen LLC, Mirant Bowline LLC, Mirant Lovett LLC, Mirant
New York Inc., and Hudson Valley Gas Corporation, were not
included.  On Feb. 15, 2007, Mirant NY-Gen filed its Chapter 11
Plan of Reorganization and on Feb. 22 filed a Disclosure
Statement explaining that Plan.  The Court approved the adequacy
of Mirant NY-Gen's Disclosure Statement on March 22, 2007, and
confirmed the Amended Plan on May 7, 2007.  Mirant NY-Gen
emerged from chapter 11 on May 7, 2007.

On July 13, 2007, Mirant Lovett filed its Chapter 11 Plan of
Reorganization.

                        *     *     *

The ratings of Mirant Corp. (Issuer Default Rating of 'B+') and
its subsidiaries remain on Fitch's Rating Watch Negative
following the company's plans to pursue alternative strategic
options including a possible purchase of Mirant by a third
party.




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


NAVIOS MARITIME: Completes Exchange Offer for 9-1/2% Sr. Notes
--------------------------------------------------------------
Navios Maritime Holdings Inc. announced that 100% of all its
outstanding 9-1/2% Senior Notes due 2014 were exchanged for a
like principal amount of its 9-1/2% Senior Exchange Notes due
2014, which have been registered under the Securities Act of
1933, as amended.

The exchange offer expired at 5:00 p.m., New York City time, on
Aug. 7, 2007.

Navios Maritime Holdings Inc. (Nasdaq: BULK, BULKU, BULKW)
-- http://www.navios.com/-- is a vertically integrated global
seaborne shipping company, specializing in the worldwide
carriage, trading, storing, and other related logistics of
international dry bulk cargo transportation.  The company also
owns and operates a port/storage facility in Uruguay and has in-
house technical ship management expertise.  It maintains offices
in Piraeus, Greece, South Norwalk, Connecticut and Montevideo,
Uruguay.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
April 5, 2007, in connection with Moody's Investors Service's
implementation of its new Probability-of-Default and Loss-Given-
Default rating methodology for the existing non-financial
speculative-grade corporate issuers in Europe, Middle East and
Africa last week, the rating agency confirmed its B1 Corporate
Family Rating for Navios Maritime Holdings Inc.

The implementation of the LGD methodology in EMEA follows the
introduction of the methodology in September 2006.  Most of the
rating actions Moody's confirmed relate to senior secured loans.

                                                      Projected
                            Old POD  New POD  LGD     Loss-Given
   Debt Issue               Rating   Rating   Rating  Default
   ----------               -------  -------  ------  ----------
   Senior Unsecured
   Regular Bond/
   Debenture Due 2014       B2        B3      LGD5     80%


* URUGUAY: Inks Energy Security Treaty with Venezuela
-----------------------------------------------------
Uruguayan President Tabare Vasquez has signed a treaty on energy
security with his Venezuelan counterpart Hugo Chavez, El
Universal reports.

According to El Universal, the two presidents also signed the
guidelines set in April 2007 during the First South American
Energy Summit held in Margarita Island.

President Chavez commented to El Universal, "Execution of this
document is historical in nature, as the TSE (treaty) is the
result of a hard, thorough work."

El Universal relates that the accord was coordinated by:

          -- President Chavez,

          -- Venezuelan state-run oil firm Petroleos de
             Venezuela, and

          -- the Venezuelan Ministry of Foreign Affairs.

"It is a comprehensive treaty that enables us to tell the
Uruguayan people that nobody in Uruguay should be worried,
because Venezuela is committed to supply the energy needed for
this century," President Chavez told El Universal.

As reported in the Troubled Company Reporter-Latin America on
July 31, 2007, Fitch Ratings upgraded Uruguay's foreign currency
sovereign Issuer Default Rating to 'BB-' from 'B+', the local
currency IDR to 'BB' from 'BB-', and its country ceiling to
'BB+' from 'BB'.  The Rating Outlook was Stable.  The short-term
IDR was affirmed at 'B'.




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


ARMOR HOLDINGS: BAE Purchase Cues Moody's to Confirm Ratings
------------------------------------------------------------
Moody's Inventors Service has confirmed all ratings of Armor
Holdings, Inc., with the ratings outlook changed to stable.
This concludes the review for upgrade commenced on May 8, 2007
and follows the completion of the acquisition of Armor Holdings
by BAE Systems plc.

Concurrent with the sale to BAE, Armor announced on
July 31, 2007 that it had received tenders and consents from the
holders of 100% of its 8.25% Senior Subordinated notes due 2013.
Therefore, Moody's will withdraw the ratings of Armor's 8.25%
Senior Subordinated notes due 2013 immediately after the
confirmation of ratings.

Withdrawal of remaining ratings will be contingent on the
outcome of the conversion of Armor's 2% Convertible Subordinated
Notes due 2024.  These notes are subject to an adjustment to
their conversion rate in connection with a "fundamental change,"
in accordance with their indenture.  As such, all note holders
will have the option to convert these notes for cash at the deal
price on an as-converted basis plus an additional consideration
throughout their conversion period.  It is anticipated that all
notes will be converted by the end of the conversion period, in
which case Moody's will withdraw their rating, as well as
Armor's Corporate Family Rating and Probability of Default
Rating.  If any notes remain outstanding after the conversion
period, it is expected that such notes will not likely be
guaranteed by BAE, and absent adequate financial information
about Armor's stand alone financial condition, Moody's would
likewise withdraw all ratings of Armor.

Ratings confirmed and to be withdrawn:

Armor Holdings Inc.

  -- Probability of Default Rating: Ba3
  -- Corporate Family Rating: Ba3
  -- Senior Subordinated Conv./Exch. Bond/Debenture: B1
  -- Senior Subordinated Regular Bond/Debenture: B1

Outlook Actions:

Armor Holdings Inc.

  -- Outlook, Changed To Stable From Rating Under Review

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


CITGO PETROLEUM: Providing US$3.3MM for Community Dev't in Bronx
----------------------------------------------------------------
Citgo Petroleum Corporation has promised to provide some US$3.3
million over the next three years for community development in
the Bronx, New York, EFE News Service reports.

According to EFE News, the move continues the Venezuelan
government's program of selling heating fuel at cheap prices
that started in 2005 to benefit the communities in the South
Bronx district.

Citgo Petroleum President Alejandro Granado told EFE News that
the subsidized fuel-sales program was subsequently extended to
help 200,000 poor households in 23 US states.  Nine entities who
offer services to the beneficiaries of the program in New York
and the northeastern US.

Citgo Petroleum also helped the La Villita community in Chicago
and provided resources for the reconstruction of a clinic in
Lake Charles, Louisiana, and a school in Corpus Christi, Texas,
EFE News states.

Headquartered in Houston, Texas, Citgo Petroleum Corp. --
http://www.citgo.com/-- is owned by PDV America, an indirect,
wholly owned subsidiary of Petroleos de Venezuela SA, the state-
owned oil company of Venezuela.

Petroleos de Venezuela 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.

                        *     *     *

Standard and Poor's Ratings Services assigned a 'BB' rating on
Citgo Petroleum Corp. in Feb. 14, 2006.

Citgo Petroleum carries Fitch's BB- Issuer Default Rating.
Fitch also rates the company's US$1.15 billion senior secured
revolving credit facility maturing in 2010 at 'BB+', its US$700
million secured term-loan B maturing in 2012 at 'BB+', and its
senior secured notes at 'BB+'.


PETROLEOS DE VENEZUELA: Says Operations Unaffected by Strikes
-------------------------------------------------------------
Venezuelan state-owned oil firm Petroleos de Venezuela SA's
general manager Jose Luis Prada told Kiraz Janicke at
Venezuelanalysis.com that oil drills, ports, and oil
installations are functioning without interruptions, despite
calls from some union members to paralyze the industry.

Venezuelanalysis.com relates that some unions called for a
strike against Petroleos de Venezuela due to a collective
contract for oil employees for 2007-2009, which has been under
negotiation since April 2007.  The strikers also demand the
incorporation of oil workers from private oil rigs in the
Orinoco Belt that were nationalized in May 2007 into Petroleos
de Venezuela.

According to Venezuelanalysis.com, 40 oil employees held
demonstrations at PDVSA Occidente's administrative office in
Maracaibo.  These employees were members of oil union
federations:

          -- Fedepetrol,
          -- Fetrahidrocarburos,
          -- Sinutrapetrol, and
          -- the Oil Workers Front of Zulia.

The report says that the strikers also want Mr. Prada's removal
as PDVSA Occidente's general manager.  They alleged that Mr.
Prada treated the workers there with disrespect.

Venezuelanalysis.com notes that Mr. Parada has been talking with
the unions in Tia Juana, Cabimas, and Lagunillas over the
incorporation of oil rig operators into Petroleos de Venezuela.

The Federation of Hydrocarbon Workers's secretary general
Augusto Villalobos told Venezuelanalysis.com that the unions
don't trust the negotiations as "there is no presence of the
Minister of Labor, or the Comptroller General of the state.
They are lead by the same manager Jose Luis Parada."

Mr. Villalobos claimed that Mr. Parada was a signatory against
Venezuelan President Hugo Chavez during "the recall referendum,"
Veenzuelanalysis.com says.  According to him, the employees were
asking for a special commission instead of those involved in the
negotiations to deal with the incorporation of the workers from
the oil rigs.

Venezuelan energy minister and Petroleos de Venezuela head
Rafael Ramirez had promised to incorporate all of the employees,
Mr. Villalobos told Venezuelanalysis.com.  Mr. Villalobos said
that 40% of the workers have been incorporated, while 500
employees are waiting for a contract.  The protest would
continue unless Mr. Parada is removed "and unless a guarantee of
permanency is signed."

Jorge Hurtado, a member of Sindicato Petrolero de Hidrocarburo,
confirmed to Venezuelanalysis.com that not all of the employees
had been incorporated.  He commented, "We have been mocked by
the upper management of PDVSA [Petroleos de Venezuela] and we
don't have permanency, which is the right of workers."

Mr. Parada told Venezuelanalysis.com, "We have incorporated
1,112 of the 1,356 specialized workers that are necessary to
work all of the oil rigs in Zulia.  The rest of the personnel [a
total of 244 more] will be incorporated in the next few days."

Mr. Parada admitted to Venezuelanalysis.com that Petroleos de
Venezuela had failed to incorporate personnel from the oil rig
Corpoven 34.  He explained, "There are nearly 45 workers that
work for a private company that has not completed its contract.
Once that drilling work terminates, that team will pass over
onto the payroll of PDVSA."

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

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


* VENEZUELA: Inks Energy Security Treaty with Uruguay
-----------------------------------------------------
Venezuelan President Hugo Chavez has signed a treaty on energy
security with his Uruguayan counterpart Tabare Vasquez, El
Universal reports.

According to El Universal, the two presidents also signed the
guidelines set in April 2007 during the First South American
Energy Summit held in Margarita Island.

President Chavez commented to El Universal, "Execution of this
document is historical in nature, as the TSE (treaty) is the
result of a hard, thorough work."

El Universal relates that the accord was coordinated by:

          -- President Chavez,

          -- Venezuelan state-run oil firm Petroleos de
             Venezuela, and

          -- the Venezuelan Ministry of Foreign Affairs.

"It is a comprehensive treaty that enables us to tell the
Uruguayan people that nobody in Uruguay should be worried,
because Venezuela is committed to supply the energy needed for
this century," President Chavez told El Universal.

                        *     *     *

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


                         ***********


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

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

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

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           * * * End of Transmission * * *