TCRLA_Public/070814.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Tuesday, August 14, 2007, Vol. 8, Issue 160

                          Headlines

A R G E N T I N A

AES CORPORATION: Expands Wind Generation Business into China
DREAM SA: Trustee Verifies Proofs of Claim Until Oct. 1
EMPRESA DISTRIBUIDORA: Earns ARS115 Million in First Six Months
EMPRESA DISTRIBUIDORA: Says Will Meet Rising Energy Demand
HYDRA SACII Y F: Proofs of Claim Verification Is Until Sept. 17

INDUZAN SA: Proofs of Claim Verification Deadline Is Oct. 22
LEPICA SRL: Proofs of Claim Verification Deadline Is Oct. 1
MIGUEL DEPETRIS: Proofs of Claim Verification Por Via Incidental
OMNI SA: Proofs of Claim Verification Is Until Nov. 13
PESCADERIA LINIERS: Claims Verification Deadline Is Sept. 25

SHUMIS SA: Seeks Reorganization Okay in Buenos Aires Court
TELECOM ARGENTINA: Earns ARS252 Million in Second Quarter 2007
TELEFONICA DE ARGENTINA: Foetra Union Accepts Salary Raise Offer

* ARGENTINA: Ministry Revokes Chileans' NatGas Export Licenses


B A R B A D O S

HILTON HOTELS: Closes Caledonian Hotel Sale for US$105.4 Million


B E R M U D A

ANNUITY & LIFE: Selling American Unit for Up to US$11.6 Million
MAN MAC: Sets Final General Meeting for Sept. 28
MAN MAC HAWKING: Final General Meeting Is on Sept. 28
MAN MAC NORDEND: Sets Final General Meeting for Sept. 28
MAN MAC VORAB: Final General Meeting Is on Sept. 28

STEINHARDT REALTY: Proofs of Claim Filing Is Until May 18
STEINHARDT REALTY: Will Hold Final General Meeting on Sept. 5
WARNER CHILCOTT: Earns US$7.9 Million in Quarter Ended June 30


B O L I V I A

* BOLIVIA: Gets US$1.1-Million Loan for IIRSA Road Project


B R A Z I L

AFFILIATED COMPUTER: Exclusivity Agreement to Expire on Nov. 14
BANCO NACIONAL: To Fund Sanitation Projects for BRL18.6 Million
BAUSCH & LOMB: Earns US$15 Million in Second Quarter of 2007
BRASIL TELECOM: Funcef Launching Talks on Firm’s Merger with Oi
KENDLE INT’L: Taps Timothy Forsey as Regulatory Affairs Advisor

SYNIVERSE TECH: Opens Office in Brazil; Hires Marcio Kanamaru
TAM SA: Incurs BRL28.6 Million Net Loss in 2007 Second Quarter
XERIUM: Restating Fin'l Statements Due to Interest Rate Swaps

* BRAZIL: State Firm To Buy Suzano from Uniao das Industrias


C A Y M A N   I S L A N D S

ASSET BACK: Sets Final Shareholders Meeting for Oct. 4
CATLEIA OIL: Proofs of Claim Filing Is Until Aug. 22
CREDIT CARDS: Will Hold Final Shareholders Meeting on Oct. 18
DB FOG: Sets Final Shareholders Meeting for Sept. 21
DB HOK: Will Hold Final Shareholders Meeting on Sept. 21

DB TAP: Sets Final Shareholders Meeting for Sept. 21
DCI NORTEL: Will Hold Final Shareholders Meeting on Sept. 24
EACM SELECT: Sets Final Shareholders Meeting for Sept. 25
FRONTIER IV: Proofs of Claim Filing Ends on Aug. 26
G-MAX 2002: Will Hold Final Shareholders Meeting on Oct. 18

GRIFFIN (CAYMAN): Sets Final Shareholders Meeting for Oct. 18
GSO CALMET: Proofs of Claim Must be Filed by Aug. 17
IASIA ALLIANCE: Sets Final Shareholders Meeting for Sept. 21
IVY MA: Proofs of Claim Filing Deadline Is Aug. 17
IVY MA HOLDINGS: Proofs of Claim Filing Ends on Aug. 17

KALEB LTD: Will Hold Final Shareholders Meeting on Sept. 21
POLY LTD: Sets Final Shareholders Meeting for Sept. 21
TRIGON ASIAN: Final Shareholders Meeting Is on Sept. 21
YANKEE CHARLIE: Will Hold Final Shareholders Meeting on Oct. 2


C H I L E

ELECTROANDINA: Argentina Revokes Chileans' Export Licenses
NEW HORIZONS: June 30 Balance Sheet Upside-Down by US$1.8 Mln.


C O S T A   R I C A

DOLE FOOD: Working with Costa Rica in Carbon Neutral Project

* COSTA RICA: Inks Free Trade Accord with Panama


E C U A D O R

PETROECUADOR: Developing Manabi with Petroleos de Venezuela
PETROECUADOR: Optimizing Sacha Oilfield Output
PETROLEOS DE VENEZUELA: Developing Manabi with Petroecuador
PETROLEOS DE VENEZUELA: Optimizing Sacha Oilfield Output


M E X I C O

BENQ CORP: Martin Pager Filing Lawsuit Against Company
CORPORACION DURANGO: Extends Cash Tender Offer Period to Aug. 17
FOAMEX INT'L: July 1 Balance Sheet Upside-Down by US$257.3 Mil.
GRUPO SENDA: Fitch Upgrades Issuer Default Ratings to B+ from B
PRIDE INT'L: Will Sell Latin American Land & Businesses to GP

URS CORP: Earns US$36.8 Million in Quarter Ended June 29
VALASSIS COMM: Extends Exchange Offer Deadline to Aug. 15


P A N A M A

* PANAMA: Inks Free Trade Agreement with Costa Rica


P U E R T O   R I C O

FUNDACION INC: Case Summary & 15 Largest Unsecured Creditors
HORNBECK OFFSHORE: Completes US$186MM Nabors Industries Buyout
POPULAR INC: Inks Deal to Acquire Citibank NA's Retail Business


T R I N I D A D   &   T O B A G O

DIGICEL LTD: Files Lawsuit Against Trinidad Firm


V E N E Z U E L A

CMS ENERGY: Unit Declares Quarterly Dividends on Preferred Stock
PEABODY ENERGY: Hires Scott Durgin as Operations Manager

* VENEZUELA: Sells US$93 Million of Bonds Due 2013
* Large Companies with Insolvent Balance Sheets


                          - - - - -


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


AES CORPORATION: Expands Wind Generation Business into China
------------------------------------------------------------
The AES Corporation has plans to expand its wind generation business into
China through the creation of a joint venture with Guohua Energy
Investment Co. Ltd., one of China's leading producers of renewable energy.
The joint venture will construct, own and operate a 49.5 MW wind farm,
which is currently under design and expected to achieve commercial
operation in 2009.  Through its investment in the joint venture, AES will
become the first U.S.-based power company with wind generation facilities
in China.  The wind farm site is located in the Huanghua area of Hebei
Province, approximately 200 kilometers southeast of Beijing, and has the
potential to generate up to 225 MW.  The Hebei Provincial Power Company
will purchase all of the power generated by the facility, as required by
the Chinese Renewable Energy Law. AES subsidiary AES Black Sea Holdings BV
will own a 49% interest in the joint venture, known as Guohua AES
(Huanghua) Wind Power Co. Ltd.  The remainder of the joint venture will be
owned by Guohua. Financial terms of the transaction were not disclosed.

"Through our joint venture with Guohua, AES is able to enter the promising
wind market in China with a well-established and respected partner, and to
create a platform for further wind activities in the future," said Ned
Hall, President, AES Renewable Generation.  "This is consistent with AES's
broader goals to expand our wind generation business globally in markets
in which AES already has established successful operations."

In 1994, AES became the first U.S.-based power company to enter China, and
now operates seven power plants in six provinces and municipalities with a
total generation capacity of 2,842 MW.

"We see tremendous growth opportunities for wind generation in China,
which has committed to adding 30,000 MW of new wind power by 2020," said
Tom Kunde, Vice President, AES North Asia.  "We look forward to being a
key part of China's growing wind generation sector."

AES entered the wind generation business in 2004.  Today, AES has more
than 1,000 MW of wind projects in operation in the United States and
another 3,000 MW of wind projects in various stages of development
throughout the world.  The company's wind development projects are located
primarily in the United States and Europe. AES has plans to expand its
wind business to other countries where it does business, including
countries in Asia and Latin America.

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

                        *     *     *

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


DREAM SA: Trustee Verifies Proofs of Claim Until Oct. 1
-------------------------------------------------------
Gustavo Alejandro Pagliere, the court-appointed trustee for Dream S.A.'s
reorganization proceeding, verifies creditors' proofs of claim on Oct. 1,
2007.

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

Infobae didn’t state the general report submission deadline.

The trustee can be reached at:

         Gustavo Alejandro Pagliere
         Tucuman 1424
         Buenos Aires, Argentina


EMPRESA DISTRIBUIDORA: Earns ARS115 Million in First Six Months
---------------------------------------------------------------
Empresa Distribuidora Norte S.A. said in a statement that its net profits
decreased 71.6% to ARS115 million in the first half of 2007, compared to
ARS404 million in the first half of 2006.

Business News Americas relates that Empresa Distribuidora's net sales grew
59.2% to ARS1.07 billion in the first six months of this year, compared to
the same period last year.

According to Empresa Distribuidora's statement, the volume of energy it
sold rose 9.6% to 8.89 terra watt hours in the first half of 2007,
compared to the same period last year, due to an average consumption
growth of 7.8% per client and a 1.8% boost in the number of customers.

Empresa Distribuidora Chief Executive Officer Alejandro Macfarlane said in
a conference call, "One of the most important factors in the first half of
the year was the implementation of the agreement that allowed us to
increase our distribution margin on Feb. 1, 2007, by 28%.

Mr. Macfarlane commented to BNamericas, "We are making the investment
needed to maintain a modern and efficient network."

According to BNamericas, Empresa Distribuidora invested ARS97 million in
the first half of 2007.

Mr. Macfarlane told BNamericas, "Regarding our integral tariff revision
[RTI], on April 30, 2007, the secretary of energy published resolution
434/2007, which indicates a time frame for the application of the new
tariff structure resulting from the RTI."

BNamericas notes that "RTI will be implemented on Feb. 1, 2008, in two
installments."

"We expect RTI will result in a revised tariff structure that will at
least maintain our current distribution margins adjusted by the increases
granted under the adjustment agreement [including CMM adjustments]," Mr.
Macfarlane told BNamericas.

Based in Buenos Aires, Argentina, Empresa Distribuidora Norte S.A. aka
Edenor is the largest electricity distribution company in Argentina in
terms of number of customers and volume of energy sold.  Edenor commenced
operations in 1992, as a result of the privatization of the previously
state-owned SEGBA.  At that time, it was granted a 95-year concession to
distribute electricity on an exclusivebasis in its concession area, the
greater Buenos Aires metropolitan area and northern portion of the City of
Buenos Aires.  EASA, which is controlled by Dolphin Energia S.A., is
Edenor's holding company.

As reported in the Troubled Company Reporter-Latin America on July 3,
2007, Moody's Investors Service assigned a B2 corporate family rating to
Empresa Distribuidora Norte S.A and to its US$250 million senior unsecured
notes issuance due in 2017.  At the same time, Moody's upgraded Edenor's
local currency debt to B2 from B3 on its global scale and from Baa3.ar to
A1.ar on its national scale for Argentina.  Moody's said the rating
outlook is stable.


EMPRESA DISTRIBUIDORA: Says Will Meet Rising Energy Demand
----------------------------------------------------------
Empresa Distribuidora Norte S.A Chief Executive Officer Alejandro
Macfarlane told Business News Americas that the company will be able to
meet increasing demand for energy.

BNamericas relates that Argentina's President Nestor Kirchner described
his nation's energy shortage as a "crisis" in July 2007.  Low
state-regulated power prices suppressed investment in Argentina.  A cold
climate in the nation also strained power supply, causing the government
to impose restrictions on the commercial use of power and natural gas and
limit natural gas exports to Chile.

Mr. Macfarlane denied in a conference call that Argentina is facing an
energy crisis, BNamericas says.

Mr. Macfarlane commented to BNamericas, "I don't think that we're going to
a crisis in Argentina, not even in the next 6-12 months, absolutely not.
We don't see any kind of social or economic crisis."

Mr. Macfarlane assured BNamericas that Empresa Distribuidora will be able
to meet increasing demand for energy.

"Blackouts are major events and we don't see any at all.  We had some
brownouts in the past but they happened at the peak of demand and there
weren't any in our concession area.  We don't foresee any in future,"
BNamericas states.

Based in Buenos Aires, Argentina, Empresa Distribuidora Norte S.A aka
Edenor is the largest electricity distribution company in Argentina in
terms of number of customers and volume of energy sold.  Edenor commenced
operations in 1992, as a result of the privatization of the previously
state-owned SEGBA.  At that time, it was granted a 95-year concession to
distribute electricity on an exclusivebasis in its concession area, the
greater Buenos Aires metropolitan area and northern portion of the City of
Buenos Aires.  EASA, which is controlled by Dolphin Energia S.A., is
Edenor's holding company.

As reported in the Troubled Company Reporter-Latin America on July 3,
2007, Moody's Investors Service assigned a B2 corporate family rating to
Empresa Distribuidora Norte S.A. and to its US$250 million senior
unsecured notes issuance due in 2017.  At the same time, Moody's upgraded
Edenor's local currency debt to B2 from B3 on its global scale and from
Baa3.ar to A1.ar on its national scale for Argentina.  Moody's said the
rating outlook is stable.


HYDRA SACII Y F: Proofs of Claim Verification Is Until Sept. 17
---------------------------------------------------------------
Manuel Omar Mansanta, the court-appointed trustee for Hydra S.A.C.I.I. y
F.'s bankruptcy proceeding, verifies creditors' proofs of claim Sept. 17,
2007.

Mr. Mansanta will present the validated claims in court as individual
reports on Oct. 30, 2007.  The National Commercial Court of First Instance
in Buenos Aires will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by Hydra 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 Hydra's accounting
and banking records will be submitted in court on Nov. 12, 2007.

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

The trustee can be reached at:

          Manuel Omar Mansanta
          Avenida Cordoba 1351
          Buenos Aires, Argentina


INDUZAN SA: Proofs of Claim Verification Deadline Is Oct. 22
------------------------------------------------------------
Estudio Rodriguez Martorelli, Demarchi y Asociados, the
court-appointed trustee for Induzan S.A.'s bankruptcy proceeding, verifies
creditors' proofs of claim Oct. 22, 2007.

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

Infobae didn’t state the reports submission deadlines.

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

The trustee can be reached at:

          Estudio Rodriguez Martorelli, Demarchi y Asociados
          Sarmiento 1452
          Buenos Aires, Argentina


LEPICA SRL: Proofs of Claim Verification Deadline Is Oct. 1
-----------------------------------------------------------
Carlos Alberto Lloria, the court-appointed trustee for Lepica SRL's
bankruptcy proceeding, verifies creditors' proofs of claim on Oct. 1,
2007.

Mr. Lloria will present the validated claims in court as individual
reports.  The National Commercial Court of First Instance No. 5 in Buenos
Aires, with the assistance of Clerk No. 10, 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 Lepica 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 Lepica's accounting
and banking records will be submitted in court.

La Nacion didn’t state the reports submission dates.

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

The debtor can be reached at:

          Lepica SRL
          Esmeralda 875
          Buenos Aires, Argentina

The trustee can be reached at:

          Carlos Alberto Lloria
          Carlos Pellegrini 385
          Buenos Aires, Argentina


MIGUEL DEPETRIS: Proofs of Claim Verification Por Via Incidental
----------------------------------------------------------------
Ester Tuninetti de Diaz, the court-appointed trustee for Miguel B.
Depetris e Hijos S.A.'s bankruptcy proceeding, verifies creditors' proofs
of claim por via incidental.

Ms. Tuninetti de Diaz will present the validated claims in court as
individual reports.  The National Commercial Court of First Instance in
Villa Maria, Cordoba, will determine if the verified claims are
admissible, taking into account the trustee's opinion, and the objections
and challenges that will be raised by Miguel B. 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 Miguel B.'s accounting and
banking records will be submitted in court.

Infobae didn’t state the reports submission deadlines.

Ms. Tuninetti de Diaz is also in charge of administering Miguel B.'s
assets under court supervision and will take part in their disposal to the
extent established by law.

The debtor can be reached at:

          Miguel B. Depetris e Hijos S.A.
          Bv. Velez Sarfield 1450, Villa Maria
          Departamento General San Martin, Cordoba
          Argentina


OMNI SA: Proofs of Claim Verification Is Until Nov. 13
------------------------------------------------------
Jorge Eduardo Sahade, the court-appointed trustee for Omni SA's bankruptcy
proceeding, verifies creditors' proofs of claim on Nov. 13, 2007.

Mr. Sahade will present the validated claims in court as individual
reports.  The National Commercial Court of First Instance in Buenos Aires
will determine if the verified claims are admissible, taking into account
the trustee's opinion, and the objections and challenges that will be
raised by Omni 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 Omni's accounting
and banking records will be submitted in court on Nov. 21, 2007.

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

The debtor can be reached at:

          Omni SA
          Migueletes 1748
          Buenos Aires, Argentina

The trustee can be reached at:

          Jorge Eduardo Sahade
          Avenida de Mayo 1324
          Buenos Aires, Argentina


PESCADERIA LINIERS: Claims Verification Deadline Is Sept. 25
------------------------------------------------------------
Omar Sergio Vazquez, the court-appointed trustee for Pescaderia Liniers
SRL's bankruptcy proceeding, verifies creditors' proofs of claim on Sept.
25, 2007.

Mr. Vazquez will present the validated claims in court as individual
reports.  The National Commercial Court of First Instance No. 12 in Buenos
Aires, with the assistance of Clerk No. 23, 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 Pescaderia Liniers 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 Pescaderia Liniers' accounting
and banking records will be submitted in court.

La Nacion didn’t state the reports submission dates.

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

The debtor can be reached at:

          Pescaderia Liniers SRL
          Ramon Falcon 7220
          Buenos Aires, Argentina

The trustee can be reached at:

          Omar Sergio Vazquez
          Bartolome Mitre 1970
          Buenos Aires, Argentina


SHUMIS SA: Seeks Reorganization Okay in Buenos Aires Court
----------------------------------------------------------
Shumis S.A. has requested for reorganization approval after failing to pay
its liabilities on April 27, 2007.

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

The case is pending in the National Commercial Court of First
Instance No. 11 in Buenos Aires.  Clerk No. 21 assists the court on this
case.

The debtor can be reached at:

          Shumis S.A.
          Parana 552
          Buenos Aires, Argentina


TELECOM ARGENTINA: Earns ARS252 Million in Second Quarter 2007
--------------------------------------------------------------
Telecom Argentina said in its earnings release that its net profits
increased 163% to ARS252 million in the second quarter 2007, from ARS96
million in the second quarter 2006.

Telecom Argentina told Business News Americas that the sale of its
telephony directory business Publicom to Spanish company Yell Publicidad
in April 2007 affected its performance in this year’s second quarter.  The
sale generated net profits of ARS102 million in the second quarter 2007.

BNamericas relates that Telecom Argentina’s revenues rose 24% to ARS2.15
billion in the second quarter 2007, compared to last year’s second
quarter.

According to BNamericas, Telecom Argentina’s net profit grew 291% to
ARS387 million in the first half of 2007, from ARS99 million in the first
half of 2006.  Its revenues rose 26% to ARS4.20 billion from ARS3.35
billion.

The report says that Telecom Argentina’s revenues from fixed telephony
business -- including voice, data transmission and Internet services --
increased by 7% to ARS1.59 billion in the first six months of 2007, from
ARS1.49 billion in the same period last year.

Telecom Argentina Chief Executive Officer Carlos Felices said in a
conference call, "Telecom continues to expand its operations in terms of
customers, revenues and profitability margins."

BNamericas notes that Telecom Argentina’s fixed lines in service rose 4%
to 4.1 million in the first half of this year, compared to the same period
last year.

Telecom Argentina Chief Financial Officer Valerio Cavallo commented to
BNamericas, "The fixed line business continues to grow on a moderate basis
with ADSL [Asymmetric Digital Subscriber Line] as the main driver.
Competition in this segment is mainly focused on long distance, corporate
and government accounts."

According to the report, Telecom Argentina’s ADSL clients increased by
100% to 602,000 in the first half of 2007, from the same period last year.

BNamericas says that Telecom Argentina’s revenues from the broadband
business rose 22% to ARS250 million in the first six months of 2007,
compared to the first six months of 2006.  Its revenue from the data
segment grew 6% to six million.

Telecom Argentina's capex increased 19% to ARS553 million in its different
business segments in the first half of 2007, from ARS465 million in the
same period last year.  Some ARS300 million were invested in the fixed
telephony business, while the remainder was spent on mobile telephony.

Telecom Argentina expects capex for the full year 2007 to account for
approximately 15% of revenues, BNamericas says, citing Mr. Felices.

Mr. Felices said in a conference call that the company expects its revenue
growth rate to slow as cellular telephone penetration of its markets
rises.

Mr. Felices told the Associated Press that markets for cellular phones
won’t be “saturated for at least two years.”  He commented, “There's still
room for growth.”

According to the AP, Telecom Argentina reported last week that its net
income almost tripled to ARS387 million in the first six months of 2007,
compared to ARS99 million in the same period last year.

Telecom Argentina said in a statement that its 26% sales growth mainly due
to its cellular phone and Internet operations.

Demand for broadband Internet services was still “the main driver of
growth,” the AP says, citing Telecom Argentina.

The report says that Telecom Argentina’s broadband Internet customers
increased to 602,000 in the first half of 2007, from the first half of
2006.  Its cellular telephone client base grew 47% to 11.3 million.  Fixed
telephone lines in service increased 4% to 4.1 million.

Telecom Argentina will continue to decrease its debt due to growing cash
flow, Mr. Felices told the AP.  Operations weren’t under any pressure as a
result of the firm’s obligations.

Telecom Argentina’s net debt dropped by ARS1.2 million to ARS2.78 million
in the first six months of 2007, compared to the same period last year,
the AP states.

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

                        *     *     *

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


TELEFONICA DE ARGENTINA: Foetra Union Accepts Salary Raise Offer
----------------------------------------------------------------
Argentine telecoms union Foetra has ratified Telefonica de Argentina’s
salary raise offer, state news agency Telam reports.

As reported in the Troubled Company Reporter-Latin America on Aug. 9,
2007, Telefonica de Argentina's workers belonging to Foetra agreed to the
salary raise proposal.  Telefonica de Argentina offered a 16.5% salary
hike that will be immediately implemented, emulating the one Telecom
Argentina offered to Foetra members on July 21.  The employees' acceptance
of the salary increase ended a series of protests that lasted for two
months.

Business News Americas relates that Foetra's general assembly agreed to
the labor ministry’s request that the union accept Telefonica de
Argentina's salary hike offer.

The accord didn’t stipulate that the salary raise was dependent on worker
productivity, as Telefonica de Argentina previously wanted, BNamericas
states, citing Foetra spokesperson Silvia Hidalgo.

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

                        *     *     *

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


* ARGENTINA: Ministry Revokes Chileans' NatGas Export Licenses
--------------------------------------------------------------
The Argentine energy ministry has revoked the natural gas export licenses
for Tecpetrol, Mobil Argentina and Compania General de Combustibles,
Business News Americas reports, citing Electroandina and Edelnor.

Chilean securities regulator Superintendencia de Valores y Seguros de
Chile told BNamericas that the firms' export licenses were suspended for
two years for allegedly failing to make an accurate report on their proven
reserves of natural gas.

According to BNamericas, Electroandina and Edelnor had supply contracts
from the three Argentine firms.  They said they were analyzing commercial
and legal options to defend their imports.

No natural gas is arriving in northern Chile from Argentina, BNamericas
notes, citing a source.

                        About Edelnor

Empresa Electrica del Norte Grande SA aka Edelnor is owned by state copper
company Codelco and Suez Energy Andino, a subsidiary of Belgian company
Suez Energy through their Inversiones Tocopilla holding company.

                      About Electroandina

Headquartered in Santiago, Chile, Electroandina --
http://www.electroandina.cl-- produces electricity for the
Interconnected System of Northern Chile.  The company has an
installed capacity of 1029 MW. Its plants are located in
Tocopilla, where Electroandina supplies electric energy to
copper mines, its principal customers.  Mining clients include
Codelco Chile -- Chuquicamata Division, Codelco -- Radomiro
Tomic Division, and SCM El Abra.  Another key client, SOQUIMICH,
is a maker of specialty fertilizers, iodine, and lithium.  The
company also offers services in the maintenance of transmission
lines and substations.  In addition to its energy business,
Electroandina offers port services in Tocopilla, for loading and
unloading bulk goods, liquids, and general cargo.

                       *     *     *

Fitch Ratings assigned these ratings on Argentina:

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




===============
B A R B A D O S
===============


HILTON HOTELS: Closes Caledonian Hotel Sale for US$105.4 Million
----------------------------------------------------------------
Hilton Hotels Corporation has completed the sale of the Caledonian Hilton
hotel to The Caledonian Operating Company Ltd UK for GBP51.7 million in
cash (approximately US$105.4 million).  The purchase was funded by Bank of
Scotland Corporate.

Hilton will retain a long-term management contract for the 251-room hotel.
This contract will ensure the continuation of the Hilton brand in this
historic landmark hotel, superbly located in the heart of Scotland’s
capital city.  The Caledonian Operating Company Ltd UK has agreed to an
investment programme of GBP13.5 million to maintain the high standard of
amenity and service in the grade II listed building which originally
opened in 1903.

Hilton was advised by C B Richard Ellis Hotels.

Headquartered in Beverly Hills, California, Hilton Hotels Corp.
-- http://www.hilton.com/-- together with its subsidiaries,
engages in the ownership, management, and development of hotels,
resorts, and timeshare properties, as well as in the franchising
of lodging properties in the United States and internationally,
including Australia, Austria, Barbados, Finland, India,
Indonesia, Trinidad and Tobago, Philippines and Vietnam.

                        *     *     *

As reported on May 1, 2007, Standard & Poor's Ratings Services
said its rating and outlook on Hilton Hotels Corp.
(BB+/Stable/--) would not be affected by the company's
announcement that it has entered into an agreement with Morgan
Stanley Real Estate to sell up to 10 hotels for approximately
US$612 million in proceeds (net of property level debt
repayment, taxes, and transaction costs).  Upon the
close of the transactions, Hilton Hotels plans to use the net
proceeds to repay debt.

Standard & Poor's rating upgrade for Hilton Hotels in March 2007
incorporated the expectation that the company would sell a
meaningful level of additional assets over the near term, which
would likely lead to additional debt reduction.  Still, Standard
& Poor's is encouraged by the expected transaction multiple
related to today's announcement.  If the lodging transaction
market remains strong, enabling Hilton Hotels to generate
substantial proceeds from remaining asset sales, if these
proceeds are used for debt reduction, and if the lodging
environment remains strong, an outlook revision to positive
could be considered as 2007 progresses.  Any movement signaling
the potential for a higher rating will depend on Hilton Hotels's
commitment to maintaining credit measures aligned with higher
ratings over the lodging cycle.

In February 2007, Moody's Investors Service upgraded Hilton
Hotels Corporation's corporate family rating to Ba1 from Ba2
reflecting a reduction in leverage from a faster than expected
pace of asset sales and strong earnings during 2006.  Adjusted
debt to EBITDAR has improved to around 5.0x from 6.0x in January
2006.




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


ANNUITY & LIFE: Selling American Unit for Up to US$11.6 Million
---------------------------------------------------------------
Annuity and Life Re (Holdings), Ltd., together with its wholly owned
subsidiary, Annuity & Life Re America, Inc., a Delaware corporation, has
signed a Stock Purchase Agreement to sell its United States based
insurance subsidiary, Annuity and Life Reassurance America, Inc., to an
unrelated third party.

The purchaser has agreed to pay the company US$6,950,000 plus an amount
equal to any capital and surplus in excess of US$7,400,000 that is
required by the Connecticut Insurance Department.  In no event will the
purchase price increase to an amount greater than US$11,604,356.  In
addition, the purchase price will be reduced by US$25,000 for each
insurance license in excess of three that is deemed a restricted license
at closing.  The company expects to realize proceeds from the sale of
US$11,154,551 less US$400,000 in transaction costs.  Annuity and Life Re
(Holdings), Ltd. is expected take a charge to Net Income of approximately
US$1 million as a result of this transaction.

The consummation of the transaction is subject to certain closing
conditions, including the receipt of the approval by the Connecticut
Department of Insurance.  The parties expect the transaction to close no
later than March 31, 2008.

Annuity and Life Re (Holdings), Ltd. -- http://www.alre.bm/or
http://www.annuityandlifere.com/-- provides annuity and life
reinsurance to insurers through its wholly owned subsidiaries,
Annuity and Life Reassurance, Ltd., and Annuity and Life
Reassurance America, Inc.

                    Going Concern Doubt

Chartered Accountants of Hamilton, Bermuda, raised substantial
doubt about Annuity and Life Re (Holdings), Ltd.'s ability to
continue as a going concern after it audited the company's
annual report for 2004.  The auditor pointed to the company's
significant losses from operations and experience of liquidity
demands.


MAN MAC: Sets Final General Meeting for Sept. 28
------------------------------------------------
Man Mac Jackobshorn 8B Ltd.'s final general meeting is scheduled on Sept.
28, 2007, at 9:30 a.m., at:

         Argonaut House, 5 Park Road
         Hamilton HM O9, Bermuda

These matters will be taken up during the meeting:

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

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

    -- passing of a resolution dissolving the company.


MAN MAC HAWKING: Final General Meeting Is on Sept. 28
-----------------------------------------------------
Man Mac Hawkwing 17A Ltd.'s final general meeting is scheduled on Sept.
28, 2007, at 9:30 a.m., at:

         Argonaut House, 5 Park Road
         Hamilton HM O9, Bermuda

These matters will be taken up during the meeting:

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

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

    -- passing of a resolution dissolving the company.


MAN MAC NORDEND: Sets Final General Meeting for Sept. 28
--------------------------------------------------------
Man Mac Nordend 4A Ltd.'s final general meeting is scheduled on
Sept. 28, 2007, at 9:30 a.m., at:

         Argonaut House, 5 Park Road
         Hamilton HM O9, Bermuda

These matters will be taken up during the meeting:

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

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

    -- passing of a resolution dissolving the company.


MAN MAC VORAB: Final General Meeting Is on Sept. 28
---------------------------------------------------
Man Mac Vorab 6B Ltd.'s final general meeting is scheduled on
Sept. 28, 2007, at 9:30 a.m., at:

         Argonaut House, 5 Park Road
         Hamilton HM O9, Bermuda

These matters will be taken up during the meeting:

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

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

    -- passing of a resolution dissolving the company.


STEINHARDT REALTY: Proofs of Claim Filing Is Until May 18
---------------------------------------------------------
Steinhardt Realty Fund Ltd.'s creditors are given until
May 18, 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.

Steinhardt Realty's shareholders agreed on May 2, 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


STEINHARDT REALTY: Will Hold Final General Meeting on Sept. 5
-------------------------------------------------------------
Steinhardt Realty Fund Ltd.'s final general meeting is scheduled on Sept.
5, 2007, at 9:30 a.m., at:

         Clarendon House, Church Street
         Hamilton, Bermuda

These matters will be taken up during the meeting:

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

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

    -- passing of a resolution dissolving the company.


WARNER CHILCOTT: Earns US$7.9 Million in Quarter Ended June 30
--------------------------------------------------------------
Warner Chilcott Limited's total revenue in the quarter ended June 30,
2007, rose to US$227.0 million, an increase of 21.4%, over the prior year
quarter.  The primary driver of the increase in revenue was the net sales
of two products introduced in
March 2006, LOESTRIN 24 FE and TACLONEX, which together contributed
US$48.8 million of revenue growth for the quarter ended June 30, 2007,
compared to the prior year quarter.  The company reported net income of
US$7.9 million (US$0.03 per diluted share) in the quarter compared with a
net loss of US$36.7 million in the prior year quarter.

Cash net income in the quarter ended June 30, 2007, was US$64.7 million.
The company's results for the quarter ended
June 30, 2007, included a US$10.0 million expense for the previously
disclosed settlement of two antitrust lawsuits brought by certain direct
purchaser plaintiffs.  The claims held by the settling plaintiffs
represented a majority of the damages sought by all the direct purchaser
plaintiffs in the OVCON 35 litigation, including those sought in the one
pending class action lawsuit brought by the remaining direct purchaser
plaintiffs.  Excluding the after-tax impact of this settlement reserve,
adjusted cash net income for the quarter ended
June 30, 2007, was US$74.5 million.

                           Revenue

Revenue in the quarter ended June 30, 2007 was US$227.0 million, an
increase of US$40.0 million or 21.4% over the same quarter in the prior
year.  The primary drivers of the increase in revenue were the net sales
of two products introduced in March 2006, LOESTRIN 24 FE and TACLONEX.

Sales of its oral contraceptive products increased US$6.4 million or 11.3%
in the quarter ended June 30, 2007, compared with the prior year quarter.
The company began commercial sales of LOESTRIN 24 FE in March 2006.
Beginning in April 2006, LOESTRIN 24 FE became its top promotional
priority amongst its oral contraceptive brands.  LOESTRIN 24 FE generated
revenue of
US$34.7 million in the quarter ended June 30, 2007, compared to US$6.2
million in the prior year quarter.  LOESTRIN 24 FE filled prescriptions
increased 23.3% in the quarter ended
June 30, 2007, compared with the quarter ended March 31, 2007.  The
company introduced and began commercial sales of FEMCON FE in the second
half of 2006, but did not initiate promotional efforts to launch the
product until April 2007.  FEMCON FE is now the top promotional priority
for its newly expanded Chilcott sales force and generated revenues of
US$6.4 million in the quarter ended June 30, 2007.  FEMCON FE filled
prescriptions increased 36.2% in the quarter ended June 30, 2007, compared
with the quarter ended March 31, 2007.  Net sales of ESTROSTEP decreased
US$7.6 million, or 27.3%, in the quarter ended
June 30, 2007, compared to the prior year quarter.  The decrease in
ESTROSTEP net sales was primarily due to decreased demand for the product
as measured by a 33.4% decline in filled prescriptions for the quarter
ended June 30, 2007, compared with the same quarter in 2006.  A portion of
the reduced demand was offset by higher selling prices in the current
quarter.  ESTROSTEP filled prescriptions declined due to the shift of the
company's promotional efforts to LOESTRIN 24 FE and FEMCON FE.  OVCON net
sales declined US$20.9 million, or 90.1%, for the quarter ended June 30,
2007, compared with the prior year quarter.  The decline in OVCON revenue
was primarily due to the introduction of generic versions of OVCON 35
beginning in late October 2006, which led to an 85.1% decline in filled
prescriptions for OVCON 35 for the quarter ended June 30, 2007, compared
to the prior year quarter.

Sales of its dermatology products increased US$16.8 million, or 21.0%, in
the quarter ended June 30, 2007, compared to the prior year quarter,
primarily due to the increase in TACLONEX sales of US$20.3 million.
TACLONEX, which was launched in April of 2006, achieved sequential growth
in filled prescriptions of 7.5% in the current quarter compared to the
quarter ended
March 31, 2007.  Sales of DOVONEX decreased US$6.4 million or 16.1% in the
quarter ended June 30, 2007, compared with the prior year quarter due to a
decline in filled prescriptions of 17.2% and a contraction of pipeline
inventories of DOVONEX products in the quarter ended June 30, 2007,
relative to the prior year quarter.  The decline in filled prescriptions
and contraction of DOVONEX pipeline inventories were partially offset by
higher selling prices in the quarter compared with the prior year quarter.
In April 2006, the company began to promote TACLONEX as the first line
topical therapy for mild to moderate psoriasis.  The decline in filled
prescriptions for DOVONEX in the quarter ended June 30, 2007, compared
with the prior year quarter was largely due to its efforts to grow
TACLONEX.  Net sales of DORYX increased US$2.9 million, or 11.4% in the
quarter ended June 30, 2007, compared with the prior year quarter.  DORYX
prescriptions, which had been growing during the period from July 1, 2005,
through June 30, 2006, softened in the second half of 2006 due to
decreased promotional emphasis following the April 2006 launch of
TACLONEX.  In January 2007, the company took steps to increase its
Dermatology sales force's promotional efforts with DORYX.  While filled
prescriptions for DORYX declined 10.3% during the quarter ended June 30,
2007, compared to the same quarter last year, DORYX net sales increased as
higher selling prices more than offset the decline in filled
prescriptions.

Sales of its hormone therapy products increased US$8.2 million, or 22.7%,
in the quarter ended June 30, 2007, compared with the prior year quarter.
The launch of the low-dose version of FEMHRT in 2006 slowed the decline of
filled prescriptions in its hormone therapy portfolio.  FEMHRT filled
prescriptions were down 5.0% in the quarter ended June 30, 2007, compared
with the prior year quarter, the impact of which was offset by higher
selling prices.  Filled prescriptions for ESTRACE CREAM were down 1.7% in
the quarter ended June 30, 2007, compared with the prior year quarter,
which was more than offset by higher selling prices.  Sales of SARAFEM,
its product used to treat symptoms of pre-menstrual dysphoric disorder
(PMDD), declined US$0.2 million or 1.6% in the quarter ended June 30,
2007, compared with the prior year quarter.  The decrease was due to a
22.1% decline in filled prescriptions in the quarter ended June 30, 2007,
compared to the prior year quarter, offset in part by higher selling
prices.

                        Cost Of Sales

Cost of sales increased US$9.1 million, or 24.4%, in the quarter ended
June 30, 2007, compared with the prior year quarter primarily due to the
19.7% increase in product net sales.  Its gross profit margin on product
net sales decreased to 79.3% in the current year quarter from 80.1% in the
prior year quarter mainly due to a change in the mix of products sold.
Its cost of sales for DOVONEX and TACLONEX (which include royalties based
on its net sales, as defined in the relevant supply agreements), expressed
as a percentage of product net sales, are significantly higher than the
costs for its other products.  In the quarter ended June 30, 2007, DOVONEX
and TACLONEX together accounted for 30.6% of its products sold compared
with 29.2% in the year ago quarter.  Higher revenues from lower-margin
contract manufacturing activities also contributed to the decrease in
gross profit margin with contract manufacturing sales accounting for 4.4%
of its product net sales compared with 1.9% in the prior year quarter.

           Selling, General & Administrative Expenses

SG&A expenses for the quarter ended June 30, 2007, were US$70.2 million,
an increase of US$9.2 million, or 15.1%, from US$61.0 million in the prior
year quarter.  Advertising and promotion for the quarter ended June 30,
2007, decreased US$5.6 million, or 20.0%, compared with the prior year
quarter primarily due to expenses incurred in the quarter ended June 30,
2006, for the promotional launches of TACLONEX and LOESTRIN 24.  Selling
and distribution expenses for the quarter ended June 30, 2007, increased
US$3.6 million, or 19.3%, over the prior year quarter primarily due to the
expansion of the company's field sales forces by approximately 75
territories during the first quarter of 2007 to support the initiation of
promotional activities for FEMCON FE.  General, administrative and other
expenses in the quarter ended June 30, 2007, increased US$11.2 million
over the prior year quarter, with US$10.0 million of the increase related
to a reserve for the settlement of two antitrust lawsuits brought by
certain direct purchaser plaintiffs in the OVCON 35 litigation and the
balance due to a general increase in expenses such as payroll and
insurance associated with the growth of the business.  As a result of the
recent settlement activity relating to the OVCON 35 litigation, there
remains one pending direct purchaser class action lawsuit alleging
antitrust claims.

                Research & Development Activities

The company's investment in R&D totaled US$11.2 million in the quarter
ended June 30, 2007, compared with US$5.1 million in the prior year
quarter, an increase of US$6.1 million or 120.9%.  The increase in R&D
activities is mainly due to costs being incurred for a clinical study for
its new low-dose oral contraceptive.  The company completed the enrollment
of the clinical study in July 2007 and began to enroll patients in a
clinical study for another new oral contraceptive during the second
quarter.  Its product development activities are mainly focused on
improvements to its existing products, new and enhanced dosage forms and
new products delivering compounds which have been previously shown to be
safe and effective.  The company expects to pay a US$10.0 million
milestone payment to its development partner LEO Pharma in the second half
of 2007 upon FDA acceptance of LEO Pharma's NDA submission for TACLONEX
gel for the scalp.  In July, the company made a US$4.0 million payment to
Paratek Pharmaceuticals, Inc. to acquire certain rights to novel
tetracyclines for the treatment of acne and rosacea.  The US$4.0 million
payment will be included in R&D expense in the third quarter.

                     Net Interest Expense

Net interest expense for the quarter ended June 30, 2007, was US$31.1
million, a decrease of US$14.9 million, or 32.4%, from US$46.0 million in
the prior year quarter.  Included in the quarter ended June 30, 2007, was
US$2.6 million relating to the write-off of deferred loan costs associated
with the optional prepayment of US$130.0 million of its senior secured
credit facility debt on June 29, 2007.  The decrease in interest expense
is primarily the result of reductions in outstanding debt of US$866.9
million from June 30, 2006, to June 30, 2007, offset partially by higher
interest rates in the current quarter compared with the same prior year
quarter.

                        Income Taxes

The company's effective tax rate for the quarter ended
June 30, 2007, was 25.6%, which approximates the company's current
estimate of the corporate effective tax rate for the full year 2007.  The
effective income tax rate for interim periods and the full year can be
volatile due to changes in income mix forecasted among the various tax
jurisdictions in which the company operates.

                Net Income & Cash Net Income

Reported net income for the quarter ended June 30, 2007, was US$7.9
million and cash net income for the current quarter was US$64.7 million.
In arriving at cash net income, we add back the after-tax impact of the
book amortization of intangible assets and the amortization or write off
of deferred financing costs.  These items are tax-effected at the
estimated marginal rates attributable to them. In the quarter ended June
30, 2007, the marginal tax rates associated with the amortization of
intangible assets was 8.6% and the rate for amortization and write off of
deferred financing costs was 7.0%.

The company's results for the quarter ended June 30, 2007, included a
US$10.0 million expense relating to the settlement of two antitrust
lawsuits brought by certain direct purchaser plaintiffs.  The claims held
by the settling plaintiffs represented a majority of the damages sought by
all the direct purchaser plaintiffs related to the OVCON 35 litigation.
Excluding the after-tax impact of this expense, adjusted cash net income
for the quarter was US$74.5 million or US$0.30 per share based on 250.4
million diluted Class A shares outstanding.

              Liquidity, Balance Sheet & Cash Flows

As of June 30, 2007, the company's cash and cash equivalents totaled
US$57.9 million and total debt outstanding was US$1,355.0 million with no
borrowings outstanding under its revolving credit facility.  The company
generated US$133.6 million of cash from operating activities in the
quarter ended June 30, 2007, compared with US$40.6 million in the prior
year quarter.  Net income for the quarter ended June 30, 2007, increased
by US$44.6 million from a US$36.7 million net loss in the prior year
quarter.  During the quarter ended June 30, 2007, its total inventories
decreased US$17.2 million due primarily to the timing of shipments
received from certain suppliers and its accrued expenses increased US$10.0
million for the reserve related to the OVCON 35 litigation.  Capital
expenditures in the quarter ended June 30, 2007, totaled US$4.2 million
and were primarily for the continued investment in the Company's Fajardo,
Puerto Rico manufacturing facility.

               2007 Financial Guidance Update

Based on the second quarter results and the current outlook for the
remainder of 2007, the company is increasing its full year 2007 financial
guidance.

The company anticipates revenue to be in the range of US$870 to US$890
million based on the current outlook for net sales of key products within
the various product portfolios.

Total SG&A expenses are expected to be in the range of US$250 to US$259
million.  The increase primarily relates to higher anticipated promotional
expenses in the second half of 2007 and the additional G&A expense related
to the US$10.0 million reserve recorded in the second quarter related to
the OVCON 35 litigation.  Expected total SG&A expenses do not include any
amounts that may be payable in connection with any potential future
settlements of its outstanding litigation.

Internal research and development costs are expected to be in the range of
US$40 to US$43 million dollars, reflecting an increase from its previous
guidance due to higher than originally anticipated costs associated with
ongoing clinical studies.  Total R&D expense for the year will also
include the US$10.0 million milestone payment to LEO Pharma upon FDA
acceptance of the NDA submission for TACLONEX scalp gel which we
anticipate will occur in the second half of 2007 and the US$4.0 million
upfront payment to Paratek which will be recognized in the third quarter
of 2007.  Based on these amounts, total 2007 R&D expense is expected to be
in the range of US$54 to US$57 million.

Based on the revised guidance, GAAP net income is expected to be in the
range of US$16 to US$21 million.  Adjusted cash net income, which adds
back the after tax impact of book amortization of intangible assets, the
amortization and write off of deferred financing costs and the expenses
associated with the OVCON 35 litigation settlements, is expected to be in
the range of US$250 to US$255 million.  Using 250.6 million Class A common
shares, the company expects adjusted cash net income per share to be in
the range of US$1.00 to US$1.02 for the full year 2007.

Headquartered in Hamilton, Bermuda, Warner Chilcott Ltd. --
http://www.warnerchilcott.com/-- is the holding company for a
host of pharmaceutical makers.  Women's health care products,
including hormone therapies (femhrt and Estrace Cream) and
contraceptives (Estrostep, Loestrin, and OvCon), are the
company's largest segment.  Other products include dermatology
treatments for acne (Doryx) and psoriasis (Dovonex and
Taclonex).  US subsidiary Warner Chilcott, Inc. makes
prescription drugs for dermatology and women's health; other
subsidiaries provide services in data management systems,
pharmaceutical development, manufacturing, and chemical
development.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 21, 2007, Moody's Investors Service raised the speculative-
grade liquidity rating for Warner Chilcott Company, Inc. (a
subsidiary of Warner Chilcott Limited) to SGL-1 from SGL-2,
indicating very good liquidity.  The Corporate Family Rating is
B2, with a positive rating outlook.




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


* BOLIVIA: Gets US$1.1-Million Loan for IIRSA Road Project
----------------------------------------------------------
The Inter-American Development Bank has approved a US$1,155,000 grant to
support the preparation of the Caranavi-Quiquibey-Yucumo road project in
Bolivia, one of the priority projects of the Initiative for the
Integration of Regional Infrastructure in South America.

The grant will help to complete the technical, economic and environmental
studies required before a call for bids can be issued for work on the
Caranavi-Quiquibey and Quiquibey-Yucumo road segments, which are included
in the Northern Corridor Highway Improvement Program.

Resources from the IDB fund for Financing Technical Cooperation for
Initiatives for Regional Infrastructure Integration (Integration Fund)
will support the development of a road with suitable design parameters,
and safe for vehicles all year round. Local counterpart financing will
total US$297,000.

                    The Integration Fund

The US$20 million Integration Fund was established by the IDB in 2005 to
finance studies and project preparation concerning regional physical
integration.  The fund increases the support that the IDB has
traditionally given to regional integration by fostering projects in
initiatives prioritized by the governments of the region, such as IIRSA,
Plan Puebla Panama for Mexico and Central America and similar initiatives
in the Caribbean.

                        *     *     *

Fitch Ratings assigned these ratings on Bolivia:

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




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


AFFILIATED COMPUTER: Exclusivity Agreement to Expire on Nov. 14
---------------------------------------------------------------
Affiliated Computer Services Inc. has suspended the Exclusivity
Agreement, dated March 20, 2007, between Darwin Deason, Chairman of the
company's Board of Directors, and Cerberus Capital Management, L.P.,
expired at 11:59 p.m. on Aug. 9, 2007.  The Exclusivity Agreement is now
in effect and is scheduled to expire on Nov. 14, 2007.

However, in light of the current conditions of the credit markets, the
Special Committee of the Board of Directors, which is comprised of
independent directors not affiliated with Mr. Deason, is in discussions
with Cerberus and Mr. Deason regarding an extension of the suspension of
the Exclusivity Agreement.  In addition, the Special Committee is
continuing to have discussions with respect to strategic alternatives.

Affiliated Computer Services Inc. (NYSE: ACS)
-- http://www.acs-inc.com/-- provides business process
outsourcing and information technology solutions to world-
class commercial and government clients.  The company has more
than 58,000 employees supporting client operations in nearly 100
countries.  The company has global operations in Brazil, China,
Dominican Republic, India, Guatemala, Ireland, Philippines,
Poland, and Singapore.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
April 3, 2007, Moody's Investors Service confirmed Affiliated
Computer Services' Ba2 corporate family rating and assigned a
stable rating outlook, following the company's conclusion of an
internal investigation into its options granting practices and
restoration to current U.S. Securities and Exchange Commission
financial reporting.

As reported in the Troubled Company Reporter on March 29, 2007,
Fitch Ratings placed Affiliated Computer Services Inc. on
Rating Watch Negative after the proposed offer from Darwin
Deason, founder and current chairman of ACS, and Cerberus
Capital Management L.P. to acquire the company in a leveraged
buyout transaction valued at US$8.2 billion, including existing
debt.

Ratings affected were (i) Issuer Default Rating 'BB'; (ii)
Senior secured revolving credit facility at 'BB'; (iii) Senior
secured term loan at 'BB'; and (iv) Senior notes at 'BB-'.


BANCO NACIONAL: To Fund Sanitation Projects for BRL18.6 Million
---------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social or BNDES' board of
directors approved two financings to the city hall of Belo Horizonte
(State of Minas Gerais), which will benefit two communities with a total
population of 31 thousand inhabitants.  One of the items of the project is
the re-settlement of 2,150 families that currently live in risky areas.
The projects will also include actions for agrarian regulation.

The financings are BRL18.6 million for implementation of the Program for
Environmental Restoration and Sanitation of Valley Depths and Streamlets
on Natural Beds [Drenurbs], and BRL113.5 million for the Integrated
Multisectorial Project [PMI], in Vila Pedreira Prado Lopes and Aglomerado
Morro das Pedras.

Under Drenurbs’ projects the investments will be destined to five
sub-basins of the municipality, of which four are in Ribeirao das Oncas
and one in Ribeirao Arrudas.

This project provides for urban promotion and occupation in harmony with
the environment, with maintenance and preservation of streamlets on their
natural beds, by treating and restoring their margins.  The families
removed from the risky areas will be re-settled after the slopes have
undergone a geological-geotectonic holding work.  The communities will
gain new community and leisure areas.  Rains and outflows from the
municipality’s hydrographic basins will be monitored, so reducing the
risks of flood, based on the implementation on flood control systems and
on emptying the prairies.

PMI, which in Belo Horizonte received the name of “Two Communities”, is a
model for treatment of social problems, by integrating investments and
coordinating public policy actions at the municipal ambit.  It functions
in various sectors, such as basic sanitation, drainage, treatment of risky
areas, social promotion, housing, health, education and mobility.

Among PMI’s special characteristics also stands out a formulation of
solutions, considering the local specifics and the development of
communities’ participation processes.  Such processes imply: management,
monitoring, and evaluation of established results and targets, as well as
maintenance and sustainability of the transformations carried out.

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.


BAUSCH & LOMB: Earns US$15 Million in Second Quarter of 2007
------------------------------------------------------------
Bausch & Lomb Inc. filed its Quarterly Report on Form 10-Q with the U.S.
Securities and Exchange Commission for the second quarter and six months
ended June 30, 2007.  Net earnings were US$15 million in the second
quarter of 2007, compared to a net loss of US$15 million in 2006.  For the
first six months of 2007 reported net earnings were US$33.5 million,
compared to a net loss of US$3.3 million in 2006.  First-half 2006 net
earnings were reduced by provisions associated with the MoistureLoc recall
totaling US$19.6 million.

Second-quarter consolidated net sales of US$649.5 million grew 14%,
compared to US$571.5 million reported in the same period in 2006.  All of
the company's geographic operating segments, and four of its five product
categories, reported increased sales.

For the first six months of 2007, net sales totaled US$1.2 billion,
compared to US$1.1 billion in 2006, a reported growth rate of 10%.
Prior-year net sales were reduced by US$19.1 million in provisions for
customer returns and other sales reductions associated with the
MoistureLoc recall.  Excluding those provisions, year-to-date 2007 net
sales increased 8%, or 5% in constant currency, with growth in each
geographic segment and in the Company's contact lens, pharmaceuticals and
cataract/vitreoretinal product categories.

Major factors contributing to second-quarter 2007 net earnings include:

   * Gross margin improved to 57.9% of sales, compared to 56.3%
     in  2006, reflecting a shift in the sales mix toward higher
     margin newer products and higher lens care sales than the
     prior year.  Currency had a slightly negative effect on
     gross margins in the second quarter.

   * Selling, administrative and general expenses were
     US$280.3 million in 2007, compared to US$256.2 million in
     2006.  The increase reflected:

     a) higher legal fees associated with product liability
        lawsuits;

     b) higher mark-to-market expense related to deferred
        compensation and stock plans;

     c) professional fees incurred in connection with the
        proposed Warburg Pincus merger; and

     d) higher incentive compensation expense based on operating
        performance improvement compared to 2006.

   * Research and development expense totaled approximately
     US$55 million in the 2007 second quarter, compared to
     US$50 million in 2006.

   * Net financing expenses were US$6.2 million in the second
     quarter of 2007 versus US$13.7 in 2006, due to higher mark-
     to-market income on deferred compensation investments,
     lower waiver and consent fees associated with bank and
     public debt issuances, and lower interest expense due to
     the company's retiring debt in the second quarter of 2006.

   * The effective tax rate in the second quarter of 2007 was
     52.3%.

Cash and cash equivalents totaled US$547.7 million at the end of the
second quarter of 2007, compared to US$499.9 million at the end of 2006.

Cash flows from operating activities totaled US$70.7 million.  Positive
earnings (adjusted for non-cash items) were somewhat offset by payments
for taxes and interest, combined with higher accounts receivable and
inventories.

The company used US$48.1 for investing activities in the first six months
of 2007, including US$29.6 million of capital spending.

Net cash inflows from financing activities totaled US$23.3 million, mainly
reflecting cash received from the exercise of stock options and cash
outflows to pay dividends.

Headquartered in Rochester, New York, Bausch & Lomb Inc. (NYSE:
BOL) -- http://www.bausch.com/-- develops, manufactures, and
markets eye health products, including contact lenses, contact
lens care solutions, and ophthalmic surgical and pharmaceutical
products.  The company is organized into three geographic
segments: the Americas; Europe, Middle East, and Africa; and Asia
(including operations in India, Australia, China, Hong Kong, Japan, Korea,
Malaysia, the Philippines, Singapore, Taiwan and Thailand).  In Latin
America, the company has operations in Brazil and Mexico.  In Europe, the
company maintains operations in Austria, Germany, the Netherlands, Spain,
and the United Kingdom.

                        *     *     *

As reported in the Troubled Company Reporter on July 12, 2007,
Standard & Poor's Ratings Services said its 'BB+' corporate
credit and senior secured ratings on Bausch & Lomb Inc. remain
on CreditWatch with negative implications in light of the
July 5, 2007 acquisition bid by Advanced Medical Optics Inc.

As reported in the Troubled Company Reporter on May 18, 2007,
Moody's Investors Service stated that it will continue its review of
Bausch & Lomb Incorporated's ratings for possible downgrade following the
announcement that the company has entered into a definitive merger
agreement with affiliates of Warburg Pincus.

Ratings subject to review for possible downgrade include the
company's Ba1 Corporate Family rating and Ba1 Probability of
Default rating.

In addition, the Warburg Pincus deal prompted Fitch to maintain
its Negative Rating Watch on the company.  Fitch also warned that the
transaction would significantly increase leverage and likely result in a
multiple-notch downgrade, including an Issuer Default Rating of no higher
than 'BB-'.


BRASIL TELECOM: Funcef Launching Talks on Firm’s Merger with Oi
---------------------------------------------------------------
Brazilian pension fund Funcef head Guilherme Lacerda told news daily
Estado de S Paulo that the fund will launch talks on the possible merger
between fixed line telecoms operators Oi and Brasil Telecom.

Business News Americas relates that Funcef is part of the controlling
group of pension funds in Oi and Brasil Telecom.  It is positive that the
pension funds "are looking positively" at the planned merger.

Pension funds haven’t yet discussed communications minister Helio Costa's
suggestion that in event of a merger the government should be given “a
golden share that would give it the right to veto in certain strategic
decisions concerning the company,” Mr. Lacerda told BNamericas.

                        About Funcef

Funcef is the pension fund of Brazil's national savings bank Caixa
Economica Federal and is part of a group of local pension funds led by
Previ, the pension fund for Brazil's federal Banco do Brasil.

                          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.

                        *     *     *

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.


KENDLE INT’L: Taps Timothy Forsey as Regulatory Affairs Advisor
---------------------------------------------------------------
Kendle International Inc. disclosed that Timothy Forsey, PhD, has joined
the company as Principal Regulatory Affairs Consultant specializing in
providing regulatory affairs guidance to the company's biotechnology
customers.  Based in Kendle's Ely, Cambridgeshire, England office, he will
work with customers to gain regulatory approval for both new marketing
authorizations and changes to existing marketing authorizations.  Dr.
Forsey will provide customers with advice on strategy and regulatory
approaches to development, interact on their behalf with regulatory
agencies and assist them with dossier preparation.

"As biotechnology's overall contribution to the health care arena
continues to grow, so will the demand for outsourcing services, as new
therapies move from preclinical to the clinical phases of drug
development," said Melanie Bruno, PhD, Vice President Global Regulatory
Affairs and Quality.  "Tim Forsey's experience with this customer group
and in the regulatory environment will be a tremendous asset to our
biotech and pharmaceutical customers seeking to move their new compounds
from discovery to market approval," she added.

Dr. Forsey previously served as Head of Biologicals and the
Biotechnology Unit for The Medicines and Healthcare products Regulatory
Agency, where he was involved with a variety of licensing and scientific
issues, and represented the United Kingdom on the Biologics Working Party
of the Committee for Medicinal Products for Human Use at the European
Medicines Agency.  He also worked as Senior Director, Head of European
Regulatory Affairs for Shire Human Genetic Therapies, Ltd.  Prior to that,
Dr. Forsey worked for Pharmacia, Amgen, the National Institute for
Biological Standards and Control and the University of London.  In all, he
brings more than 30 years of pharmaceutical, governmental and research
experience to his role with Kendle.

Dr. Forsey earned a doctorate in microbiology from the University of
London and a Bachelor of Science in microbiology from the University of
Surrey, England.  A widely-published author, he is a registered member of
The Organization for Professionals in Regulatory Affairs and the Drug
Information Association.

Dr. Forsey is the latest member of an international team of
pharmaceutical, clinical and non-clinical biotechnology experts Kendle has
assembled with backgrounds encompassing regulatory agencies on three
continents, as well as experience working for a variety of pharmaceutical
companies and academic and research institutions.

                        About Kendle

Based in Cincinnati, Kendle International Inc. (Nasdaq: KNDL)
-- http://www.kendle.com/-- is a global clinical research
organization and provides Phase II-IV clinical development
services worldwide.  The company's global clinical development
business is focused on five regions - North America, Europe,
Asia/Pacific, Africa and Latin America including Brazil.

                        *     *     *

As of July 3, 2007, the company carries Moody's B1 long-term
corporate family rating, B1 bank loan debt, and B2 probability
of default rating.  Moody's said the outlook is stable.

In addition, the company also carries Standard & Poor's B+ long-
term foreign and local issuer credits.  S&P said the outlook is
stable.


SYNIVERSE TECH: Opens Office in Brazil; Hires Marcio Kanamaru
-------------------------------------------------------------
Syniverse Technologies will open a new office in Brazil and has appointed
Marcio Kanamaru as director of sales for Brazil.

“Part of Syniverse’s global strategy is to have a local presence in key
markets in order to focus on customer needs and customer service,” said
Giorgio Miano, Vice President, Caribbean and Latin America, Syniverse.
“The Brazilian market is one of great importance to us, and we are excited
to have someone with the experience of Marcio onboard, especially as
Brazilian regulatory authorities and operators seek solutions for number
portability.”

Mr. Kanamaru, who most recently served as regional sales director for
Telcordia’s Latin American region and also has worked for Convergys,
Portal Software, Amdocs and IBM Brasil S.A., said he believes Syniverse’s
number portability solutions as well as its entire portfolio of products
are an excellent fit for operators in Brazilian market.

“With Anatel approving the availability of number portability across
Brazil by mid-2009, Syniverse’s local presence combined with its strong
technical and business experience gained from successful number
portability implementations around the world will prove valuable to
Brazilian operators,” he said.

He added that Syniverse also has a strong reputation in the marketplace
for its other critical CDMA- and GSM-based services.  “I believe operators
in Brazil will find the wide scope of Syniverse products well-suited to
their needs.”

Syniverse, which recently announced the opening of its Caribbean and Latin
America (CALA) headquarters in Buenos Aires, has been serving customers
throughout the region for more than fifteen years.

In addition to its number portability solutions, Syniverse offers network
and database; IP; data and messaging; multimedia; and roaming, clearing,
rating and charging solutions that enable the delivery of everything from
voice calls to sophisticated data and video services.

                       About Syniverse

Syniverse Technologies Inc. in Tampa, Florida (NYSE: SVR)
-- http://www.syniverse.com/-- provides technology services for wireless
telecommunications companies.  Its integrated suite of services include
technology interoperability services, which enable the invoicing and
settlement of domestic and international wireless roaming telephone calls
and wireless data events; SMS and MMS routing and translation services
between carriers; and interactive video and mobile broadband solutions,
prepaid applications, and roaming services.  Celebrating its 20th
anniversary in 2007, Syniverse has offices in major cities around the
globe.  Syniverse is ISO 9001:2000 certified and TL 9000 approved,
adhering to the principles of customer focus and quality improvement
practices.  The company has offices in the Netherlands and China.

                        *     *     *

As reported in the Troubled Company Reporter on June 29, 2007, Standard &
Poor's Ratings Services affirmed its 'BB-' corporate
credit rating, along with its stable outlook, and its 'B' senior
subordinated debt rating on Tampa, Florida-based Syniverse
Technologies Inc.  At the same time, Standard & Poor's assigned
its 'BB' bank loan rating and '2' recovery rating to Syniverse's
proposed US$489 million senior secured bank facility.  The bank loan
rating, which is one notch above the corporate credit rating, along with
the '2' recovery rating, reflect our expectation for substantial (70%-90%)
recovery of principal by creditors in the event of a payment default.


TAM SA: Incurs BRL28.6 Million Net Loss in 2007 Second Quarter
--------------------------------------------------------------
TAM S.A. reports its second quarter results for 2007.
Operational and financial data, except where otherwise indicated, are
presented based on amounts consolidated in Reals and prepared in
accordance with accounting principles generally accepted in Brazil.

Domestic Operations:

   -- TAM reached 49.6% average market share in 2007 second
      quarter.

   -- ASKs (capacity) increased 26.1% in 2007 second quarter as
      a result of the increase in the operating fleet (20 A320
      and 2 A319, vs. 5 F100 returned and other 5 in redelivery)
      and the increase in block hours by aircraft from 12.0
      hours/day to 12.6 hours/day (total operation).

   -- RPKs (demand) increased 21.5% in 2007 second quarter
      compared to 2006 second quarter.

   -- TAM's domestic load factor decreased to 72.3% in 2007
      second quarter, compared to 75.0% in 2006 second quarter.

   -- the company operated with the best operational efficiency
      performance, between the largest companies, in the
      domestic market with 65% for 2007 second quarter

   -- 10 p.p. above the market average.

International Operations:

   -- TAM reached 70.8% average market share in 2007 second
      quarter.

   -- ASKs (capacity) increased 97.5% in 2007 second quarter,
      due to the increase of three A330 and three MD11 into its
      international operating fleet allowing the beginning of
      daily flights to London and Milan, the second daily
      frequencies to New York and the third daily flight to
      Paris by adding, the inclusion of two daily flights to
      Santiago, the start of daily frequency to Cordoba and the
      increase in the operations to Buenos Aires.

   -- RPKs (demand) increased 82.7% comparing 2007 second
      quarter with 2006 second quarter.

   -- TAM's international load factor decreased 5.6 p.p. to
      69.0% in 2007 second quarter compared to 74.6% in 2006
      second quarter.

   -- the company operated with 66% operational efficiency in
      the international market, 10 p.p. above the market
      average.

Financial Performance:

   -- Total CASK decreased by 11.6% in 2007 second quarter
      compared to 2006 second quarter.

   -- EBIT and EBITDAR margins of 1.7% and 12.8% respectively.

   -- Net loss of BRL28.6 million, a negative margin of 1.5%.

   -- The company’s total cash and cash equivalents equaled
      BRL2,511 million

Highlights:

   -- 7.2 million passengers transported - an increase of 19%
      vs. 2006 second quarter

   -- Increase in block hours/day per aircraft from 12.0 to 12.6

   -- 20 new A320, 3 A330, 2 A319 and 3 MD11; 5 F100 returned
      2007 second quarter vs. 2006 second quarter

   -- Gross Revenues of BRL2.1 billion, an increase of 12.6%

   -- New domestic flight to Criciuma (Brazil)

   -- New international flights to Caracas (Venezuela); direct
      flight between Salvador and Paris; beginning of operations
      to Montevideo (Uruguay)

   -- Announcement of full code share alliances with United
      Airlines, Lufthansa, LAN and TAP

   -- Partnership with Caixa Economica Federal to allow
      passengers to pay for airline tickets at lottery ticket
      outlets

   -- New payment methods for airfares

   -- Announcement of acquisition of four additional B777-300ER
      through the exercise of options, increasing the Boeing
      fleet to 8 aircraft

   -- Announcement of the acquisition of 22 Airbus A350 XWBs
      plus 10 more options and the confirmation of four options
      of A330

   -- Inauguration of technological condominium in Sao Carlos:
      Goodrich will be the first company installed in the area

   -- Our Return on Equity (ROE) was 25.7%

   -- Our Return on Assets (ROA) was 7.3%

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

                        *     *     *

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


XERIUM: Restating Fin'l Statements Due to Interest Rate Swaps
-------------------------------------------------------------
Xerium Technologies Inc. disclosed that based on the findings of its
previously announced review of the accounting treatment related to
interest rate swaps that it entered into in June 2005, it will restate
certain of its previously issued financial statements.

“The interest rate swap transactions that are the subject of this
restatement provide effective economic hedges and this change in
accounting method will not minimize the benefits from this risk management
strategy," said Thomas Gutierrez, Chief Executive Officer of Xerium
Technologies.  "Accounting for hedging activities is an extremely complex
area and we are committed to making sure that we make the proper
adjustments now, and that future periods will be accounted for properly.
This is a technical accounting issue which we expect will affect only
interest expense and income taxes thereon and the resultant impact on net
income (loss).  This issue will not impact our cash flow or the operating
results we announced earlier this week, including sales, income from
operations and Adjusted EBITDA.”

                         Background

The restatement will correct the company’s accounting for the fair value
of its interest rate swap agreements that it entered into in June 2005.
To date, the Company has accounted for these interest rate swaps as
hedging instruments in accordance with SFAS No. 133, “Accounting for
Derivative Instruments and Hedging Activities,” as amended.  The fair
value of these interest rate swap agreements was adjusted quarterly, with
the changes recorded as deferred gains or losses on the Company’s
consolidated balance sheet with the offset recorded in accumulated other
comprehensive loss, net of tax.  It has been determined that the swaps do
not qualify as hedging instruments because the Company inappropriately
applied the ‘short-cut’ method to evaluate these interest rate swaps for
hedge accounting purposes from the date of inception.  Accordingly, the
Company will recognize the change in the fair value of these swaps as a
component of earnings for past and future periods.

            Financial Statements to be Restated

The consolidated financial statements expected to be restated are the
consolidated balance sheets as of Dec. 31, 2006, and 2005 and the
consolidated statements of operations, stockholders’ equity (deficit), and
cash flows for the years 2006 and 2005 and the company’s unaudited
quarterly financial statements during these years, commencing with the
quarter ended June 30, 2005, and the quarter ended March 31, 2007.  These
consolidated financial statements, as filed, contain errors and should
therefore not be relied upon.  As a result of this determination, related
reports of the company’s independent registered public accounting firm on
the consolidated financial statements and internal control over financial
reporting included in the annual report on Form 10-K for the year ended
Dec. 31, 2006, would no longer be relied upon.

Following completion of its work and that of its independent registered
public accounting firm, the restatement of the company’s financial results
will be effected as soon as practicable by the filing of an amended annual
report for the year ended Dec. 31, 2006, and an amended quarterly report
on Form 10-Q for the quarter ended March 31, 2007.

The accounting review was initiated to address a matter involving the
company’s historical accounting for interest rate swap agreements that it
entered into in June 2005.  The company identified the matter during the
ordinary course of reviewing the company’s interest rate swaps and
financial results for the second quarter of 2007.  It is necessary for the
company to complete these restatements in order to complete its quarterly
report on Form 10-Q for the quarter ended June 30, 2007, and accordingly,
this report was not filed by its due date, but is expected to be filed
upon the completion of the restatement.

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: State Firm To Buy Suzano from Uniao das Industrias
------------------------------------------------------------
Brazilian state-run oil company Petroleo Brasileiro SA is negotiating with
Brazilian petrochemicals group Uniao das Industrias Petroquimicas SA for
the purchase of the Suzano Petroquimica SA petrochemicals firm and the
possible formation of a petrochemicals company in the southeast, the
Associated Press reports.

Petroleo Brasileiro told the AP that its US$1.1 billion purchase of Suzano
Petroquimica is a major step toward consolidating the sector in Brazil.

Petroleo Brasileiro Downstream Director Paulo Roberto Costa said in a
press conference that the firm wants to collaborate with companies to
create a large new petrochemicals firm, the AP notes.

Mr. Costa told the AP, "We need to have Brazilian petrochemical companies
that can compete internationally."

Only large petrochemicals plants will be able to produce cheaply enough to
compete globally, the AP says, citing Mr. Costa.  Petroleo Brasileiro
wants to acquire a 76% stake in Suzano Petroquimica in 90 days.

Mr. Costa commented to the AP, "We may get a private partner in this
business."

Petroleo Brasileiro wants to boost its participation in second-generation
petrochemicals with the acquisition of Suzano Petroquimica, but is not
seeking a majority position, the AP states.

                  About Petroleo Brasileiro

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

                        *     *     *

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

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

                        *     *     *

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




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


ASSET BACK: Sets Final Shareholders Meeting for Oct. 4
------------------------------------------------------
Asset Back Servicing Ltd. will hold its final shareholders meeting on Oct.
4, 2007, at the office of the company.

These agendas will be taken during the meeting:

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

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

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

The liquidator can be reached at:

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


CATLEIA OIL: Proofs of Claim Filing Is Until Aug. 22
----------------------------------------------------
Catleia Oil Co.’s creditors are given until Aug. 22, 2007, to prove their
claims to John Cullinane and Derrie Boggess, the company's liquidators, or
be excluded from receiving any distribution or payment.

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

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

The liquidators can be reached at:

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


CREDIT CARDS: Will Hold Final Shareholders Meeting on Oct. 18
-------------------------------------------------------------
Credit Cards Two will hold its final shareholders meeting on Oct. 18,
2007, at:

          Queensgate House, George Town
          Grand Cayman, Cayman Islands

These agendas will be taken during the meeting:

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

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

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

The liquidator can be reached at:

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


DB FOG: Sets Final Shareholders Meeting for Sept. 21
----------------------------------------------------
DB Fog Investments Ltd. will hold its final shareholders meeting on Sept.
21, 2007, at 9:00 a.m., at the office of the company.

These agendas will be taken during the meeting:

   1) confirm, ratify and approve the conduct of the liquidation
      by the liquidators, Jeremy Simon Spratt and Finbarr Thomas
      O’Connell;

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

   3) authorizing the liquidators to retain the records of the
      company for a period of five 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:

         JS Spratt
         Attention: Ray Levy
         8 Salisbury Square, London
         EC4Y 8BB, United Kingdom
         Tel: 01144 207 694 3201
         Fax: 01144 207 694 3533


DB HOK: Will Hold Final Shareholders Meeting on Sept. 21
--------------------------------------------------------
DB Hok Investments Ltd. will hold its final shareholders meeting on Sept.
21, 2007, at 11:00 a.m., at the office of the company.

These agendas will be taken during the meeting:

   1) confirm, ratify and approve the conduct of
      the liquidation by the liquidators, Jeremy Simon
      Spratt and Finbarr Thomas O’Connell;

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

   3) authorizing the liquidators to retain the records
      of the company for a period of five 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:

         JS Spratt
         Attention: Ray Levy
         8 Salisbury Square, London
         EC4Y 8BB, United Kingdom
         Tel: 01144 207 694 3201
         Fax: 01144 207 694 3533


DB TAP: Sets Final Shareholders Meeting for Sept. 21
----------------------------------------------------
DB Tap Investments Ltd. will hold its final shareholders meeting on Sept.
21, 2007, at 10:30 a.m., at the office of the company.

These agendas will be taken during the meeting:

   1) confirm, ratify and approve the conduct of
      the liquidation by the liquidators, Jeremy Simon
      Spratt and Finbarr Thomas O’Connell;

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

   3) authorizing the liquidator to retain the records
      of the company for a period of five 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:

         JS Spratt
         Attention: Ray Levy
         8 Salisbury Square, London
         EC4Y 8BB, United Kingdom
         Tel: 01144 207 694 3201
         Fax: 01144 207 694 3533


DCI NORTEL: Will Hold Final Shareholders Meeting on Sept. 24
------------------------------------------------------------
DCI Nortel (A) Ltd. will hold its final shareholders meeting on Sept. 24,
2007, at:

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

These agendas will be taken during the meeting:

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

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

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

The liquidators can be reached at:

         Cereita Lawrence
         Scott Aitken
         P.O. Box 1109
         Grand Cayman KY1-1102
         Cayman Islands
         Tel: (345) 949-7755
         Fax: (345) 949-7634


EACM SELECT: Sets Final Shareholders Meeting for Sept. 25
---------------------------------------------------------
Eacm Select Alternative Fund 1 Ltd. will hold its final shareholders
meeting on Sept. 25, 2007, at the office of the company.

These agendas will be taken during the meeting:

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

   2) authorizing the liquidator to retain the records
      of the company for a period of six 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:

         David A.K. Walker
         Attention: Jyoti Choi
         P.O. Box 258
         Grand Cayman KY1-1104
         Cayman Islands
         Tel: (345) 914 8657
         Fax: (345) 945 4237


FRONTIER IV: Proofs of Claim Filing Ends on Aug. 26
---------------------------------------------------
Frontier IV Ltd.’s creditors are given until Aug. 26, 2007,
to prove their claims to John Cullinane and Derrie Boggess, the company's
liquidators, or be excluded from receiving any distribution or payment.

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

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

The liquidators can be reached at:

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


G-MAX 2002: Will Hold Final Shareholders Meeting on Oct. 18
-----------------------------------------------------------
G-Max 2002 FL-A Ltd. will hold its final shareholders meeting on Oct. 18,
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,
      and

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

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

The liquidators can be reached at:

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


GRIFFIN (CAYMAN): Sets Final Shareholders Meeting for Oct. 18
-------------------------------------------------------------
Griffin (Cayman Islands) LLC will hold its final shareholders meeting on
Oct. 18, 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,
      and

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

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

The liquidators can be reached at:

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


GSO CALMET: Proofs of Claim Must be Filed by Aug. 17
----------------------------------------------------
GSO Calmet Holdings (Cayman) Ltd.’s creditors are given until
Aug. 17, 2007, to prove their claims to John Cullinane and Derrie Boggess,
the company's liquidators, or be excluded from receiving any distribution
or payment.

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

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

The liquidators can be reached at:

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


IASIA ALLIANCE: Sets Final Shareholders Meeting for Sept. 21
------------------------------------------------------------
Iasia Alliance Fund Ltd. will hold its final shareholders meeting on Sept.
21, 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,
      and

   2) authorizing the liquidator to retain the records
      of the company for a period of six 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:

         Richard L. Finlay
         Attention: Krysten Lumsden
         P.O. Box 2681
         George Town, Grand Cayman
         Tel: (345) 945 3901
         Fax: (345) 945 3902


IVY MA: Proofs of Claim Filing Deadline Is Aug. 17
--------------------------------------------------
Ivy Ma Holdings Cayman 5 Ltd.’s creditors are given until
Aug. 17, 2007, to prove their claims to John Cullinane and Derrie Boggess,
the company's liquidators, or be excluded from receiving any distribution
or payment.

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

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

The liquidators can be reached at:

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


IVY MA HOLDINGS: Proofs of Claim Filing Ends on Aug. 17
-------------------------------------------------------
Ivy Ma Holdings Cayman 8 Ltd.’s creditors are given until
Aug. 17, 2007, to prove their claims to John Cullinane and Derrie Boggess,
the company's liquidators, or be excluded from receiving any distribution
or payment.

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

Ivy Ma's shareholders agreed on June 5, 2007, to place the company into
voluntary liquidation under The Companies Law (2004 Revision) of the
Cayman Islands.

The liquidators can be reached at:

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


KALEB LTD: Will Hold Final Shareholders Meeting on Sept. 21
-----------------------------------------------------------
Kaleb Ltd. will hold its final shareholders meeting on
Sept. 21, 2007, at 12:00 p.m., at the office of the company.

These agendas will be taken during the meeting:

   1) confirm, ratify and approve the conduct of
      the liquidation by the liquidators, Jeremy Simon
      Spratt and Finbarr Thomas O’Connell;

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

   3) authorizing the liquidators to retain the records
      of the company for a period of five 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:

         JS Spratt
         Attention: Ray Levy
         8 Salisbury Square, London
         EC4Y 8BB, United Kingdom
         Tel: 01144 207 694 3201
         Fax: 01144 207 694 3533


POLY LTD: Sets Final Shareholders Meeting for Sept. 21
------------------------------------------------------
Poly Ltd. will hold its final shareholders meeting on
Sept. 21, 2007, at 11:30 a.m., at the office of the company.

These agendas will be taken during the meeting:

   1) confirm, ratify and approve the conduct of
      the liquidation by the liquidators, Jeremy Simon
      Spratt and Finbarr Thomas O’Connell;

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

   3) authorizing the liquidator to retain the records
      of the company for a period of five 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:

         JS Spratt
         Attention: Ray Levy
         8 Salisbury Square, London
         EC4Y 8BB, United Kingdom
         Tel: 01144 207 694 3201
         Fax: 01144 207 694 3533


TRIGON ASIAN: Final Shareholders Meeting Is on Sept. 21
-------------------------------------------------------
Trigon Asian Credit Opportunities Fund (Master) Ltd. will hold its final
shareholders meeting on Sept. 21, 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,
      and

   2) authorizing the liquidator to retain the records
      of the company for a period of six 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:

         Richard L. Finlay
         Attention: Krysten Lumsden
         P.O. Box 2681
         George Town, Grand Cayman
         Tel: (345) 945 3901
         Fax: (345) 945 3902


YANKEE CHARLIE: Will Hold Final Shareholders Meeting on Oct. 2
--------------------------------------------------------------
Yankee Charlie Aviation Ltd. will hold its final shareholders meeting on
Oct. 2, 2007, at the office of the company.

These agendas will be taken during the meeting:

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

   2) authorizing the liquidators to retain the records
      of the company for a period of five 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:

         Terry W.Carson
         Roy Welsby
         P.O. Box 1044
         George Town, Grand Cayman
         Cayman Islands
         Tel: (345) 949-8588
         Fax: (345) 949-7325




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


ELECTROANDINA: Argentina Revokes Chileans' Export Licenses
----------------------------------------------------------
Electroandina and Edelnor told Chilean securities regulator
Superintendencia de Valores y Seguros de Chile that the Argentine energy
ministry has revoked the natural gas export licenses for Tecpetrol, Mobil
Argentina and Compania General de Combustibles, Business News Americas
reports.

BNamericas relates that the regulator said the firms' export licenses were
suspended for two years for allegedly failing to make an accurate report
on their proven reserves of natural gas.

According to BNamericas, Electroandina and Edelnor had supply contracts
from the three Argentine firms.  They said they were analyzing commercial
and legal options to defend their imports.

No natural gas is arriving in northern Chile from Argentina, BNamericas
notes, citing a source.

                       About Edelnor

Empresa Electrica del Norte Grande SA aka Edelnor is owned by state copper
company Codelco and Suez Energy Andino, a subsidiary of Belgian company
Suez Energy through their Inversiones Tocopilla holding company

                   About Electroandina

Headquartered in Santiago, Chile, Electroandina --
http://www.electroandina.cl-- produces electricity for the
Interconnected System of Northern Chile.  The company has an
installed capacity of 1029 MW. Its plants are located in
Tocopilla, where Electroandina supplies electric energy to
copper mines, its principal customers.  Mining clients include
Codelco Chile -- Chuquicamata Division, Codelco -- Radomiro
Tomic Division, and SCM El Abra.  Another key client, SOQUIMICH,
is a maker of specialty fertilizers, iodine, and lithium.  The
company also offers services in the maintenance of transmission
lines and substations.  In addition to its energy business,
Electroandina offers port services in Tocopilla, for loading and
unloading bulk goods, liquids, and general cargo.

As reported in the Troubled Company Reporter-Latin America on July 24,
2007, Fitch Ratings affirmed the 'BB' foreign and local currency Issuer
Default Ratings of ElectroAndina S.A.  In addition, Fitch revised
Electroandina's rating outlook to positive from stable.


NEW HORIZONS: June 30 Balance Sheet Upside-Down by US$1.8 Mln.
--------------------------------------------------------------
New Horizons Worldwide Inc. reported net income of US$1.5 million for the
three months ended June 30, 2007, compared to net income of US$2.7 million
for the same period in 2006.

As of June 30, 2007, the company's balance sheet listed total assets of
US$24.4 million, total liabilities of US$26.3 million, and total
stockholders' deficit of US$1.8 million.

Revenue for the quarter ended June 30, 2007 totaled US$13.3 million,
compared to US$22.9 million in the comparable 2006 period.  Revenue from
company-owned training centers declined to US$7.3 million in the quarter
ended June 30, 2007 from US$14.2 million in the comparable period of 2006
primarily as a result of the disposal and re-franchising of eight
Company-owned locations.  Franchising revenue declined to US$6.0 million
in the second quarter of 2007 as compared to US$8.7 million in the second
quarter of 2006 primarily as a result of the cancellation of the company’s
courseware reseller contract in July 2006.  Partially offsetting this
decline, royalty revenue increased to US$4.9 million in the quarter ended
June 30, 2007 from US$4.5 million in the comparable 2006 period primarily
as a result of re-franchising the eight company-owned training centers.

The company had operating income of US$1.4 million in the second quarter
of 2007, unchanged from the prior year result.  The Company defines
operating income (loss) as income (loss) before gains (losses) from the
sale of assets, interest and income taxes.  The franchising segment
improved its operating margin in 2007 as compared to the earlier period
but experienced a drop in operating income as a result of the cancellation
of the courseware reseller contract.  The decline in the franchising
segment was offset by an increase in operating income in the Company-owned
locations.

For the three months ended June 30, 2007, total system-wide revenues from
all franchised and company-owned locations was US$98.1 million compared to
total system-wide revenues for the comparable 2006 period of US$96.1
million, an increase of 2.1%.

                      Current Outlook

Mark A. Miller, President and Chief Executive Officer of New Horizons
stated, “By repositioning the Company as a franchisor we have been able to
improve our cost structure and our operating margin from the 2006 period.
In addition, the remaining Company-owned centers operated profitably due
to better alignment of costs and revenues and better utilization of staff
and space resources.  While we are proud of what we have accomplished
since last year, we remain committed to further improving the business by
continuing to work closely with our franchisees and customers to
capitalize on opportunities in the learning industry.”

                    About New Horizons

Anaheim, California-based New Horizons Worldwide Inc. (Pink
Sheets: NEWH) - http://www.newhorizons.com/-- franchises the
New Horizons Computer Learning Center brand in the U.S. and
around the world.  It also owns and operates computer training
centers in the U.S. and more than 280 centers in 56 countries.
New Horizons Computer Learning Centers is an independent IT
training company by IDC in 2006.

It has Latin America operations in Brazil, Chile, Colombia,
Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Jamaica,
Mexico, Panama, Peru and Puerto Rico

As of March 31, 2007, the company's balance sheet listed total
assets of US$26.7 million, total liabilities of US$30.2 million,
and total stockholders' deficit of US$3.4 million.




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


DOLE FOOD: Working with Costa Rica in Carbon Neutral Project
------------------------------------------------------------
Dole Food Company, Inc.’s Costa Rican operating subsidiary Standard Fruit
de Costa Rica has signed an agreement with Fondo Nacional de Financiamento
Forestal (FONAFIFO), the National Forestry Financing Fund and an entity of
the Ministry of Environment and Energy of Costa Rica to work together on a
project aimed at establishing a carbon neutral product supply chain for
bananas and pineapples, from their production in Costa Rica to the markets
in North America and Europe.

Carbon neutral, as applied to the banana and pineapple product supply
chains, means that the carbon dioxide emitted to produce, pack, transport
and distribute the fruit will be offset by mitigation practices which
increase the capture of carbon dioxide in order to achieve a 'neutral'
balance.  These practices entail new, more efficient transportation
methods, changes to agricultural processes to reduce carbon dioxide
emissions, and partnering with local farmers to implement preservation and
reforestation programs.

Dole Food President and Chief Executive Officer David A. DeLorenzo said,
"The environment is a concern for all of us.   Companies, consumers,
governments and non-governmental organizations should endeavor to promote
and adopt new production and distribution methods and consumption behavior
in order to reverse harmful trends to the environment.  As the world's
largest producer and distributor of fruits and vegetables, Dole is
determined to take the lead in its sector and the agreement with FONAFIFO
is a good starting point."

Costa Rican Environment and Energy Minister Roberto Dobles, PhD., stated,
"Dole is a such an important company in the production of bananas and
pineapples on a global level that we are very enthusiastic that Standard
Fruit made the decision to strive to become a carbon neutral company here
in Costa Rica and join our efforts to become the first carbon neutral
country in the world by 2021.  With this agreement, Dole demonstrates its
enormous capacity to innovate and develop processes that will be reflected
in benefits to the environment.  I hope that this initiative will be
followed by others in the private sector, so that we may unite efforts in
favor of the environment."

Dole Food’s Vice President and Director of Worldwide Corporate Social
Responsibility Sylvain Cuperlier stated, "Dole has long been recognized
for its environmental programs.  Today, we want to utilize the Company's
environmental management systems and our staff's expertise to produce and
market 'carbon neutral' bananas and pineapples.  To this end, we want to
pull together all resources available within our Company and partner
further with recognized organizations.  Dole's achievements in this area
will come from working relationships with our employees, independent
producers, labor representatives, government, academia, NGO's, customers,
and suppliers."

Headquartered in Westlake Village, California, Dole Food
Company, Inc. -- http://www.dole.com/-- is a producer and
marketer of fresh fruit, fresh vegetables and fresh-cut flowers,
and markets a line of packaged foods.  The company has four
primary operating segments.  The fresh fruit segment produces
and markets fresh fruit to wholesale, retail and institutional
customers worldwide.  The fresh vegetables segment contains
operating segments that produce and market commodity vegetables
and ready-to-eat packaged vegetables to wholesale, retail and
institutional customers primarily in North America, Europe and
Asia.  The packaged foods segment contains several operating
segments that produce and market packaged foods, including
fruit, juices and snack foods.  Dole's fresh-cut flowers segment
sources, imports and markets fresh-cut flowers, grown mainly in
Colombia and Ecuador, primarily to wholesale florists and
supermarkets in the U.S.

                        *     *     *

As reported in the Troubled Company Reporter on Jan. 31, 2007,
Moody's Investors Service downgraded Dole Food Company Inc.'s
corporate family rating to B2 from B1; probability of default
rating to B2 from B1; senior secured bank credit facilities to
Ba3 from Ba2; senior unsecured notes to Caa1 from B3; and
various shelf registrations to (P)Caa1 from (P)B3.  Moody's said
the outlook is stable.

On Dec. 11, Standard & Poor's Ratings Services lowered its
ratings on Dole Food Co. Inc. and Dole Holding Co. LLC,
including its corporate credit rating, to 'B' from 'B+'.


* COSTA RICA: Inks Free Trade Accord with Panama
------------------------------------------------
The Costa Rican and Panamanian governments have signed a free trade
agreement that eliminates tariffs and promotes a more steady market
between the two South American nations, published reports say.

Negotiations leading into the bilateral agreement has started in 2002, but
progress was stalled due to disagreements on financial services and dairy
products.

The trade accord, signed by Panamanian President Martin Torrijos, and his
Costa Rican counterpart, President Oscar Arias, calls for the removal of
trade taxes to 94 percent of industrial products and 84 percent of
agricultural products in a three to seventeen year term, Inside Costa
reports.

Martin Zuniga, the general manager of Promotora del Comercio Exterior in
Costa Rica, cited the importation of plastics in Panama as an example of
the trade deal's benefits.  Absent the FTA, the products will be levied a
15% tax.  Once the FTA will be enforced, that tax will be eliminated, Mr.
Zuniga told Inside Costa Rica.

The same report notes that with the expansion of the Panama Canal, Costa
Rican industrial and consumer products will have room for growth.

                        *     *     *

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




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


PETROECUADOR: Developing Manabi with Petroleos de Venezuela
-----------------------------------------------------------
Ecuadorian state-run oil firm Petroecuador has signed a memorandum of
intent with Venezuelan counterpart Petroleos de Venezuela SA to develop
the Manabi plant in the Pacific coast, Business News Americas reports,
citing Ecuador's President Rafael Correa.

As reported in the Troubled Company Reporter-Latin America on July 17,
2007, a Petroecuador official said that construction for the company's
300,000-barrel per day Manabi refinery would need an investment of US$5
billion.  It would substitute imported derivatives.  Petroecuador was
seeking for a partner for the Manabi refinery.  It could work with
Colombian state oil firm Ecopetrol or Venezuela's Petroleos de Venezuela.

President Correa said in a press conference that developers could launch
construction work in 2008.

The Ecuadorian presidential Web site says that construction could take up
to five years.

BNamericas notes that Petroecuador will lead the plant's construction,
alongside Petroleos de Venezuela.  The project is also open to other South
American national oil firms.

President Correa said in a statement that Manabi will process crude from
fields under development in Ecuador and possibly mature fields in Ecuador.
It will generate annual earnings of US$2.00 billion and help meet demand
in India and China.  Ecuador lacks refining capacity and exports oil for
US$60 per barrel, only to import derivatives for US$80 per barrel.

Firms are considering expansion plans for the refinery's capacity.  They
are also analyzing the addition of a petrochemical component that would
increase the investment estimates to US$10 billion from US$5 billion,
BNamericas states.

                About Petroleos de Venezuela

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

                    About Petroecuador

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.


PETROECUADOR: Optimizing Sacha Oilfield Output
----------------------------------------------
Ecuadorian state-run oil firm Petroecuador has signed a memorandum of
understanding with Venezuelan counterpart Petroleos de Venezuela SA to
optimize production at the Sacha mature oilfield in Ecuador, Business News
Americas reports, citing Ecuador's President Rafael Correa.

President Correa told BNamericas that Petroleos de Veneuzlea will
introduce "state-of-the-art production technologies" to boost output at
Sacha.  Production at Sacha could increase in 36 months from current rates
of roughly 46,000 barrels per day.

According to BNamericas, President Correa wants Petroecuador to
concentrate on expanding Ecuador's remaining four mature fields, possibly
with Petroleos de Venezuela's help.

President Correa tasked Petroecuador with increasing production from the
current 175,000-barrel per day level by the end of this year, BNamericas
states.

                About Petroleos de Venezuela

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

                     About Petroecuador

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.


PETROLEOS DE VENEZUELA: Developing Manabi with Petroecuador
-----------------------------------------------------------
Venezuelan state-owned oil company Petroleos de Venezuela SA has signed a
memorandum of intent with Ecuadorian counterpart Petroecuador for the
development of the Manabi plant in the Pacific coast, Business News
Americas reports, citing Ecuador's President Rafael Correa.

As reported in the Troubled Company Reporter-Latin America on July 17,
2007, a Petroecuador official said that construction for the company's
300,000-barrel per day Manabi refinery would need an investment of US$5
billion.  It would substitute imported derivatives.  Petroecuador was
seeking for a partner for the Manabi refinery.  It could work with
Colombian state oil firm Ecopetrol or Venezuela's Petroleos de Venezuela.

President Correa said in a press conference that developers could launch
construction work in 2008.

The Ecuadorian presidential Web site says that construction could take up
to five years.

BNamericas notes that Petroecuador will lead the plant's construction,
alongside Petroleos de Venezuela.  The project is also open to other South
American national oil firms.

President Correa said in a statement that Manabi will process crude from
fields under development in Ecuador and possibly mature fields in Ecuador.
It will generate annual earnings of US$2.00 billion and help meet demand
in India and China.  Ecuador lacks refining capacity and exports oil for
US$60 per barrel, only to import derivatives for US$80 per barrel.

Firms are considering expansion plans for the refinery's capacity.  They
are also analyzing the addition of a petrochemical component that would
increase the investment estimates to US$10 billion from US$5 billion,
BNamericas states.

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

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


PETROLEOS DE VENEZUELA: Optimizing Sacha Oilfield Output
--------------------------------------------------------
Venezuelan state-run oil firm Petroleos de Venezuela SA has signed a
memorandum of understanding with Ecuadorian counterpart Petroecuador to
optimize production at the Sacha mature oilfield in Ecuador, Business News
Americas reports, citing Ecuador's President Rafael Correa.

President Correa told BNamericas that Petroleos de Veneuzlea will
introduce "state-of-the-art production technologies" to boost output at
Sacha.  Production at Sacha could increase in 36 months from current rates
of roughly 46,000 barrels per day.

According to BNamericas, President Correa wants Petroecuador to
concentrate on expanding Ecuador's remaining four mature fields, possibly
with Petroleos de Venezuela's help.

President Correa tasked Petroecuador with increasing production from the
current 175,000-barrel per day level by the end of this year, BNamericas
states.

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.




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


BENQ CORP: Martin Pager Filing Lawsuit Against Company
------------------------------------------------------
Martin Prager, BenQ Mobile Germany’s insolvency administrator, is filing a
lawsuit against parent company BenQ Corp. for a US$38-million bonus
payments promised to German senior managers, Cellular-News reprts.

According to Cellular-News, the former managers could be liable for debt
if BenQ Corp. fails to transfer the funds due to BenQ Mobile.

BenQ Corp. denied to Cellular-News Mr. Prager’s claim.

Headquartered in Taiwan, Republic of China, BenQ Corp.,
Inc. -- http://www.benq.com/-- is principally engaged in
manufacturing, developing and selling of computer peripherals
and telecommunication products.  It is also a major provider of
3G handset, 3G handset, Camera phones, and other products.  The
company's global operations are in Brazil, Mexico, Canada,
United States, Australia, China, Hong Kong, India, Indonesia,
Japan, Korea, Malaysia, New Zealand, Philippines, Singapore,
Taiwan, Turkey, Thailand, Vietnam, Austria, Belgium, among
others.

BenQ Mobile GmbH & Co., the company's German-based wholly owned
subsidiary, filed for insolvency in Munich on Sept. 29, 2006,
after BenQ Corp.'s board decided to discontinue capital
injection into the mobile unit in order to stem unsustainable
losses.  The collapse follows a year after Siemens sold the
company to Taiwanese technology group BenQ.

BenQ Mobile has lost market share against giant competitors.

A Munich Court opened insolvency proceedings against BenQ Mobile
GmbH & Co OHG on Jan. 1 after Mr. Prager failed to meet the
deadline in finding a buyer for the company on Dec. 31, 2006.

                        *     *     *

As reported on Dec. 5, 2006, that Taiwan Ratings Corp., assigned its
long-term twBB+ and short-term twB corporate credit ratings to BenQ Corp.

The outlook on the long-term rating is negative.  At the same
time, Taiwan Ratings assigned its twBB+ issue rating to BenQ's
existing NT$7.05 billion unsecured corporate bonds due in 2008,
2009, and 2010.

The ratings reflect BenQ's continuing operating losses from its
handset operations and high leverage, and the competitive nature
and low profitability of the LCD monitor industry.


CORPORACION DURANGO: Extends Cash Tender Offer Period to Aug. 17
----------------------------------------------------------------
Corporacion Durango S.A.B. de C.V. has extended the period of its cash
tender offer for any and all of its outstanding Series B Step Up Rate
Senior Secured Guaranteed Notes Due 2012 until 5:00 p.m., New York City
time, on Aug. 17, 2007.  All references to the "Expiration Date" in the
Offer to Purchase and Consent Solicitation Statement, dated June 21, 2007,
and the related Consent and Letter of Transmittal will be deemed to be
references to the New Expiration Date, and all references to "12:00
midnight, New York City time, on the Expiration Date" in the Offer to
Purchase and the Letter of Transmittal shall be deemed to be references to
5:00 p.m., New York City time, on the New Expiration Date.  The other
terms and conditions of the Tender Offer remain unchanged.  Durango may
further extend the period of the Tender Offer at Durango's sole
discretion.

The Expiration Date previously announced on Aug. 3, 2007 was 5:00 p.m.,
New York City time, on Aug. 10, 2007.  As of 5:00 p.m., New York City
time, on Aug. 10, 2007, US$370,493,003 in aggregate principal amount, or
approximately 88.3%, of the outstanding Notes had been tendered and not
withdrawn pursuant to the Tender Offer, including US$359,730,986 in
aggregate principal amount, or approximately 85.7%, of the Notes that were
tendered and not withdrawn as of 5:00 p.m., New York City time, on the
Early Participation Date.

Durango has retained Merrill Lynch, Pierce, Fenner & Smith Incorporated to
act as Dealer Manager for the Tender Offer and Consent Solicitation, and
Global Bondholder Services Corporation to act as the depositary and
information agent for the Tender Offer and Consent Solicitation.

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

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
July 12, 2007, Fitch Ratings has assigned a 'B' foreign and
local currency issuer default rating to Corporacion Durango,
S.A. de C.V.'s. In conjunction with this rating action, Fitch
has assign a 'B+' rating to the company's proposed
US$150 million amortizing five-year notes and its proposed
US$370 million notes due in 2017.  These notes have also been
assigned a Recovery Rating of 'RR3', which is consistent with an
anticipated recovery of 50%-70% in the event of a default.


FOAMEX INT'L: July 1 Balance Sheet Upside-Down by US$257.3 Mil.
---------------------------------------------------------------
Foamex International Inc. posted total assets of US$566.2 million, total
liabilities of US$823.5 million, and total stockholders' deficit of
US$257.3 million as of July 1, 2007.

The company reported net income of US$7.6 million on net sales of US$320.8
million for the quarter ended July 1, 2007, as compared with net loss of
US$13.2 million on net sales of US$344.9 million for the quarter ended
July 2, 2007.

For the two quarters ended July 1, 2007, the company had net loss of
US$9.4 million on net sales of US$638 million, as compared with net income
of US$3.8 million on net sales of US$710.8 million for the two quarters
ended July 2, 2006.

               Liquidity and Capital Resources

The company's operations are conducted through its wholly owned
subsidiary, Foamex L.P. and its liquidity requirements consist primarily
of the operating cash requirements of Foamex L.P.

Foamex L.P.'s liquidity requirements consist principally of accounts
receivable, inventory and accounts payable, scheduled payments of interest
and principal on outstanding indebtedness, capital expenditures and
employee benefit plan obligations. Cash flow from Foamex L.P.'s operating
activities, cash on hand and periodic borrowings under Foamex L.P.'s
revolving credit agreements have been adequate to meet Foamex L.P.'s
liquidity requirements.

Cash and cash equivalents were US$4.2 million at July 1, 2007, compared to
US$6 million at Dec. 31, 2006.  Working capital at
July 1, 2007, was US$146.2 million and the current ratio was 1.90 to 1
compared to working capital at Dec. 31, 2006, of US$24 million and a
current ratio of 1.08 to 1.  The current ratio improvement was primarily
due to the repayment of the DIP Revolving Credit Facility and DIP Term
Loan, which were classified as current liabilities at Dec. 31, 2006.

Total long-term debt and revolving credit borrowings at
July 1, 2007, were US$613.9 million, down US$29.7 million from Dec. 31,
2006.  As of July 1, 2007, there were US$31.8 million of revolving credit
borrowings with US$83.2 million available for borrowings and US$21 million
of letters of credit outstanding.  Revolving credit borrowings at July 1,
2007, reflect working capital requirements.

A full-text copy of the company's second quarter report is available for
free at http://researcharchives.com/t/s?225c

                About Foamex International

Headquartered in Linwood, Pennsylvania, Foamex International Inc.
(FMXIQ.PK) -- http://www.foamex.com/-- produces cushioning for bedding,
furniture, carpet cushion and automotive markets.  The company also
manufactures polymers for the industrial, aerospace, defense, electronics
and computer industries.  Foamex has Asian locations in Malaysia, Thailand
and China.  The company's Latin American subsidiary is in Mexico.

The company and eight affiliates filed for chapter 11 protection
on Sept. 19, 2005 (Bankr. Del. Case Nos. 05-12685 through 05-
12693).  Attorneys at Paul, Weiss, Rifkind, Wharton & Garrison
LLP, represent the Debtors in their restructuring efforts.
Houlihan, Lokey, Howard and Zukin and O'Melveny & Myers LLP are
advising the ad hoc committee of Senior Secured Noteholders.
Kenneth A. Rosen, Esq., and Sharon L. Levine, Esq., at Lowenstein Sandler
PC and Donald J. Detweiler, Esq., at Saul Ewings, LP, represent the
Official Committee of Unsecured Creditors.  As of July 3, 2005, the
Debtors reported US$620,826,000 in total assets and US$744,757,000 in
total debts.

On Feb. 2, 2007, the Court confirmed the Debtors' Second Amended
Joint Plan of Reorganization.  The Plan of Reorganization of
Foamex International Inc. has become effective and the company has
successfully emerged from chapter 11 bankruptcy protection on Feb. 12,
2007.


GRUPO SENDA: Fitch Upgrades Issuer Default Ratings to B+ from B
---------------------------------------------------------------
Fitch Ratings has upgraded the local and foreign currency Issuer
Default Ratings of Grupo Senda Autotransporte, S.A., de C.V. to 'B+' from
'B'.  The rating outlook is stable.

The upgrade of Grupo Senda's ratings reflect a significant improvement in
the company's financial profile due to the generation of higher EBITDA and
the reduction of debt.  During the first half of 2007, the company
generated US$30 million of EBITDA, an improvement from US$23 million in
the first half of
2006.  The improved performance of Grupo Senda was due to the continued
integration of Transportes del Norte into Grupo Senda's business model,
the optimization of the company's existing routes and the expansion into
new routes, plus the decrease in operation costs per kilometer.

For the last twelve months ended June 30, 2007, Grupo Senda generated
US$59 million of EBITDA, an increase from US$52 million in 2006.  The
company's funds from operations increased at a similar pace during this
timer period to US$35 million from US$29 million.  Grupo Senda has used
the increase in its cash flow plus a reduction in capital expenditures to
reduce its lease adjusted total debt from US$256 million as of
Dec. 31, 2006, to US$235 million as of June 30, 2007.  As of June 30,
2007, Grupo Senda had US$11 million of cash, a slight increase from US$9
million at the end of 2006.  The company has
US$8 million of debt falling due before year-end 2007.

July and December are typically the busiest months for the
Transportation industry in Mexico. Consequently, Grupo Senda should
generate more than US$35 million of EBITDA in the second half of the year.
This should result in an improvement in the company's total
debt-to-EBITDA ratio of 4.0 times for the LTM ended June 30, 2007, to less
than 3.6x for 2007.  Meanwhile, the
Company net debt-to-EBITDA ratio should improve from 3.8x to about 3.4x.

Compared with other passenger bus companies in Mexico, Grupo Senda's
business model allows the company to operate more efficiently, better
adapt to market conditions and provide higher quality standardized
services and enhanced safety.  The model involves hiring drivers and other
workers that are
Directly employed by the company.  In contrast, most of Mexico's other
authorized bus transportation companies are owner-operated such that the
bus drivers typically own one or more of the buses they operate and
control shares of a cooperative company in proportion to the number of
buses owned.

The bus service market plays a significant role in the overall
Passenger transportation sector of Mexico, accounting for approximately
98% of the passenger tickets sold for intercity travel. Alternative means
of transportation such as by airplane or personal car are not economically
viable for the average traveler as approximately 93% of the Mexican
population
Earns less than US$700 per month.  In the future, low-cost airlines will
play a more important role in intercity transportation.  Considerable
growth in per capita incomes
will need to occur before this represents a major threat for Grupo Senda,
however, this will take time.  Like other bus companies, Grupo Senda's
buses use diesel fuel.  The price of diesel fuel and gasoline is
controlled by the Mexican government and is below international prices.
Any unforeseen change in
the government's policy would squeeze Grupo Senda's margins and would
likely lead to a decline in ticket sales.

Grupo Senda is a holding company and a leading provider of interstate
passenger bus transportation and package delivery services covering 15
states and more than 120 cities in northeast and central Mexico and 12
destinations in the state of Texas in the United States.

In 2006, approximately 81% of Grupo Senda's revenues of about US$256
million was generated from its passenger transportation segment for public
intercity and chartered bus services and 19% from its personnel division
for intracity transportation services to industrial facilities and
educational institutions.

The company employs more than 6,000 people and operates a fleet of more
than 2,200 buses operates under several subsidiaries and brands names and
transported about 53 million passengers in 2006.  The company's most
important subsidiary is TDN. It was purchased in 2004 for US$155 million.

Grupo Senda is a holding company and a leading provider of
interstate passenger bus transportation and package delivery
services covering 15 states and more than 120 cities in
northeast and central Mexico and 12 destinations in the state of
Texas in the United States.  In 2005, approximately 82% of Grupo
Senda's revenues of about US$227 million was generated from its
passenger transportation segment for public intercity and
chartered bus services and 18% from its from its personnel
division for intracity transportation services to industrial
facilities and educational institutions.  The company employs
more than 6,000 people and operates a fleet of more than 2,000
buses operates under several subsidiaries and brands names and
transported about 50 million passengers in 2005.


PRIDE INT'L: Will Sell Latin American Land & Businesses to GP
-------------------------------------------------------------
Pride International said in a statement that it will sell its Latin
America land-based drilling and work over as well as exploration and
production services businesses to Brazilian private equity firm GP
Investments for US$1 billion.

Business News Americas relates that the land and exploration and
production businesses are in eight nations in Latin America.  The land
business includes 73 land drilling rigs, 135 work over rigs and two lake
drilling barges, while the exploration and production services business
provides services to complete, maintain and boost production from oil and
gas wells.

The planned sale is subject to customary closing conditions.  It would be
concluded by the end of September, BNamericas notes.

Pride International told BNamericas that combined 2006 revenues for the
two business segments totaled US$824 million.  Proceeds from the sale
could be used in general corporate and strategic purposes.

Pride International President and Chief Executive Officer Louis Raspino
said in a statement, "With the close of the transaction, contract drilling
operations of Pride International will be almost exclusively offshore,
with an increasing focus on deepwater and other high specification
assets."

GP Investments told BNamericas that it would finance 60% of the deal
through new debt.  It will finance the remaining US$400 million through
contribution from:

          -- GP Capital Partners,
          -- GP Investments, and
          -- co-investors who committed to participate.

"We expect the transaction to have an impact in the third quarter,
although we still are not certain when the deal will be formally closed,"
a GP Investments investor relations official commented to BNamericas.

Headquartered in Houston, Texas, Pride International Inc.
(NYSE: PDE) -- http://www.prideinternational.com/-- provides
onshore and offshore contract drilling and related services in
more than 25 countries, operating a diverse fleet of 277 rigs,
including two ultra-deepwater drillships, 12 semisubmersible
rigs, 28 jackups, 16 tender-assisted, barge and platform rigs,
and 214 land rigs.  The company maintains worldwide operations
in France, Mexico, Kazakhstan, India, and Brazil, among others.

As reported in the Troubled Company Reporter-Latin America on Aug, 3,
2007, Moody's affirmed Pride International, Inc.'s credit ratings
following the company's announcement of the acquisition of a newbuild
drillship to be delivered in 2010.

The ratings affirmed include the Ba1 corporate family rating,
the Ba2 rating on Pride's US$500 million senior notes due 2014,
the Baa2 rating on its US$500 million senior secured credit
facility and speculative grade liquidity rating of SGL-2. The
outlook was stable.

Pride Ratings Affirmed:

  -- Ba1 CFR and Probability of Default Rating;

  -- US$500 million Senior Notes due 2014 rated Ba2 (LGD5, 71%);

  -- US$500 million Senior Secured Credit Facility rated Baa2
     (LGD2, 13%);

  -- Speculative Grade Liquidity Rating -- SGL-2;

  -- Senior Unsecured Shelf rated (P)Ba2 (LGD5, 71%);

  -- Subordinated Shelf rated (P)Ba2 (LGD6, 97%);

  -- Preferred Shelf rated Ba2 (LGD6, 97%);


URS CORP: Earns US$36.8 Million in Quarter Ended June 29
--------------------------------------------------------
URS Corporation reported its financial results for the second quarter of
fiscal 2007, which ended on June 29, 2007.  Revenues for the quarter were
US$1.25 billion, compared with revenues of US$1.07 billion during the
second quarter of 2006, an increase of 17%.  Net income was US$36.8
million, an increase of 13% over the US$32.6 million reported for the
corresponding period in 2006.

As of June 29, 2007, the Company's backlog was US$5.75 billion, compared
to US$4.64 billion as of Dec. 29, 2006, an increase of 24%.

"URS had another excellent quarter, highlighted by record revenues, net
income and EPS,” Martin M. Koffel, Chairman and Chief Executive Officer,
stated.  “Our results were driven by strong growth in our private sector
business, particularly emissions control work for utility companies.  The
increase in our state and local government revenues reflects the increased
investment in, and funding for, infrastructure projects.  Our success in
these markets more than offset the temporary weakness in certain parts of
our federal sector, and underscore the strength of the diverse, strategic
portfolio of businesses we have assembled.  We ended the quarter with the
largest book of business in URS' history."

"Given our record book of business, and positive trends across our
domestic private sector, state and local government, and international
businesses, we believe the company is well positioned for continued growth
over the remainder of 2007 and into 2008,” Mr. Koffel continued.

For the six months ended June 29, 2007, revenues increased by 15% to
US$2.38 billion, from US$2.07 billion for the first six months of 2006.
Net income for the six months ended
June 29, 2007, was US$67.2 million.  Net income for the comparable period
in 2006 was US$56.8 million.

Headquartered in San Francisco, California, URS Corporation
(NYSE:URS) -- http://www.urscorp.com/-- offers a comprehensive
range of professional planning and design, systems engineering and
technical assistance, program and construction management, and operations
and maintenance services for transportation,
facilities, environmental, water/wastewater, industrial
infrastructure and process, homeland security, installations and
logistics, and defense systems.  The company operates in more than 20
countries with approximately 29,500 employees providing
engineering and technical services to federal, state and local
governmental agencies as well as private clients in the chemical,
pharmaceutical, oil and gas, power, manufacturing, mining and forest
products industries.  The company also has offices in Argentina,
Australia, Belgium, China, France, Germany, and Mexico, among others.

                        *     *     *

As reported in the Troubled Company Reporter on June 1, 2007,
Moody's Investors Service placed the Ba1 Corporate Family Rating
and other instrument ratings of URS Corporation on review for
downgrade following its announcement that a definitive agreement
for the acquisition of Washington Group International, Inc. was
signed.

Standard & Poor's Ratings Services placed its ratings, including
its 'BB+' corporate credit rating, on URS Corp. on CreditWatch
with negative implications.


VALASSIS COMM: Extends Exchange Offer Deadline to Aug. 15
---------------------------------------------------------
Valassis Communications Inc. has extended its offer to exchange up to
US$540.0 million aggregate principal amount of its outstanding,
unregistered 8-1/4% Senior Notes due 2015 for a like principal amount of
its new 8-1/4% Senior Notes due 2015 that have been registered under the
Securities Act of 1933, as amended.  The Exchange Offer, previously
scheduled to expire at 5 p.m., New York City time, on Aug. 10, 2007, will
now expire at 5 p.m., New York City time, on Aug. 15, 2007, unless further
extended by Valassis.

The extension of the Exchange Offer had been made to allow holders of
outstanding Original Notes who have not yet tendered their Original Notes
for exchange additional time to do so. As of 5 p.m., New York City time,
on Aug. 10, 2007, US$536,579,000 in aggregate principal amount of the
Original Notes had been validly tendered and not withdrawn in the Exchange
Offer, representing approximately 99.4% of the outstanding principal
amount of the Original Notes.

All other terms and conditions of the Exchange Offer will remain in full
force and effect.  The new notes are substantially identical to the
Original Notes, except that the new notes have been registered under the
Securities Act and, as a result, the transfer restrictions and
registration rights provisions applicable to the Original Notes will not
apply to the new notes.  The terms and conditions of the Exchange Offer
are set forth in a prospectus dated July 13, 2007.  Copies of the
prospectus and related letter of transmittal may be obtained from the
exchange agent, Wells Fargo Bank, N.A., by calling (800) 344-5128.

                       About Valassis

Headquartered in Livonia, Michigan, Valassis Communications Inc.
-- http://www.valassis.com/-- offers a wide range of marketing
services to consumer packaged goods manufacturers, retailers,
technology companies and other customers with operations in the
United States, Europe, Mexico and Canada.

                        *     *     *

Standard & Poor's Ratings Services lowered on July 9, 2006, its
corporate credit and senior unsecured ratings on Valassis
Communications Inc. to 'BB' from 'BB+' and left the ratings on
CreditWatch with negative implications.




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


* PANAMA: Inks Free Trade Agreement with Costa Rica
---------------------------------------------------
The Costa Rican and Panamanian governments have signed a free trade
agreement that eliminates tariffs and promotes a more steady market
between the two South American nations, published reports say.

Negotiations leading into the bilateral agreement has started in 2002, but
progress was stalled due to disagreements on financial services and dairy
products.

The trade accord, signed by Panamanian President Martin Torrijos, and his
Costa Rican counterpart, President Oscar Arias, calls for the removal of
trade taxes to 94 percent of industrial products and 84 percent of
agricultural products in a three to seventeen year term, Inside Costa
reports.

Martin Zuniga, the general manager of Promotora del Comercio Exterior in
Costa Rica, cited the importation of plastics in Panama as an example of
the trade deal's benefits.  Absent the FTA, the products will be levied a
15% tax.  Once the FTA will be enforced, that tax will be eliminated, Mr.
Zuniga told Inside Costa Rica.

The same report notes that with the expansion of the Panama Canal, Costa
Rican industrial and consumer products will have room for growth.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Dec. 14, 2006, Fitch Ratings affirmed the Republic of
Panama's long-term foreign currency Issuer Default Rating of
'BB+'.  Fitch also affirmed the sovereign's long-term local
currency IDR of 'BB+', the short-term foreign currency IDR of
'B' and the country ceiling of 'BBB+'.  Fitch said the rating
outlook is stable.




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


FUNDACION INC: Case Summary & 15 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Fundacion Dr. Manuel de la Pila Iglesias, Inc.
        aka Hospital Dr. Pila
        aka Villa Ponce Housing
        2445 Las Americas Avenue
        P.O. Box 331910
        Ponce, PR 00731

Bankruptcy Case No.: 07-04459

Type of Business: The Debtor operates a Puerto-Rican hospital.
                  See http://www.drpila.com/

Chapter 11 Petition Date: August 9, 2007

Court: District of Puerto Rico (Old San Juan)

Debtor's Counsel: Fausto D. Godreau Zayas, Esq.
                  Latimer, Biaggi, Rachid & Godreau
                  P.O. Box 9022512
                  San Juan, PR 00902-2512
                  Tel: (757) 724-0230
                  Fax: (787) 724-9171

Total Assets: US$55,930,498

Total Debts:  US$53,455,603

Debtor's List of its 15 Largest Unsecured Creditors:

   Entity                                 Claim Amount
   ------                                 ------------
Cesar Castillo Inc.                       US$1,929,103
P.O. Box 191149
San Juan, PR 00919-1149

Autoridad Energia Electrica               US$1,923,286
P.O. Box 7355
Ponce, PR 00732-7355

Westernbank                               US$1,124,297
P.O. Box 1180
Mayaguez, PR 00681-1180

Treasury Department                       US$3,243,800
P.O. Box 9024140
San Juan, PR 00902-4140

Corp. Fondo del Seguro del Estado         US$1,042,047
Ofic Regional de Ponce
P.O. Box 330949
Ponce, PR 00733-0949

Caribbean Emergency Physicians, P.S.C.      US$466,407
P.O. Box 7405
San Juan, PR 00936-1605

Abbot                                       US$369,625
P.O. Box 9777
San Juan, PR 00908-0777

Puerto Rico Hospital Supp.                  US$344,646
P.O. Box 158
Carolina, PR 00986-0158

Ponce Diagnostic Radiology                  US$307,203
P.O. Box 801143
Coto Laurel, PR 00780-1143

Rehabcare Group Inc.                        US$283,044
P.O. Box 502096
St. Louis, MO 63150-2096

Navigant Consulting Inc.                    US$200,501

Mallinckrodt Caribe Inc.                    US$168,734

Banco Popular de Puerto Rico                US$139,496

Praxiar Puerto Rico Inc.                     US$53,316

Isla Lab Products Corp.                      US$61,094


HORNBECK OFFSHORE: Completes US$186MM Nabors Industries Buyout
--------------------------------------------------------------
Hornbeck Offshore Services Inc. has completed its acquisition of 20
offshore supply vessels and their related business from
certain affiliates of Nabors Industries Ltd. for cash consideration of
US$186 million, plus the cost of the fuel inventory on such vessels.

The Sea Mar Fleet is comprised of ten 200 class DP-1 new
generation OSVs and ten conventional OSVs.

The company also acquired one 285-foot DP-2 new generation OSV
currently under construction at a domestic shipyard with an anticipated
fourth quarter 2008 delivery. The total estimated cost of this newbuild
vessel, prior to allocation of construction period interest, is
approximately US$34 million, of which US$7.3 million was paid to Nabors at
closing.

All of the vessels acquired by Hornbeck Offshore are U.S. flagged and
qualify for U.S. coastwise trade under the "Jones Act" except for one of
the conventional vessels, which is foreign-flagged. In addition, Hornbeck
Offshore now manages five Nabors-owned Mexican flagged vessels currently
operating offshore Mexico.

                About Nabors Industries Ltd.

Headquartered in Hamilton, Bermuda, Nabors Industries Ltd. (NYSE: NBR) --
http://www.nabors.com/-- owns and operates approximately 600 land
drilling and approximately 800 land workover and well-servicing rigs in
North America.  Nabors' marketed offshore fleet consists of 41 platform
rigs, 14 jack-up units and 4 barge rigs in the United States and multiple
international markets.  Nabors manufactures top drives and drilling
instrumentation systems and provides comprehensive oilfield hauling,
engineering, civil construction, logistics and facilities maintenance, and
project management services.

               About Hornbeck Offshore Services

Based in Covington, Louisiana, Hornbeck Offshore Services Inc. (NYSE: HOS)
-- http://www.hornbeckoffshore.com/-- through its subsidiaries, provides
offshore supply vessels for the offshore oil and gas industry primarily in
the United States Gulf of Mexico and internationally, including Puerto
Rico.  Hornbeck Offshore currently owns a fleet of over 80 vessels
primarily serving the energy industry.

                        *     *     *

As of July 30, 2007, the company holds Moody's Ba3 long-term
corporate family rating, senior secured debt, and probability of
default.  Moody's said the outlook is negative.

Standard & Poor's also placed the company's long-term foreign and local
issuer credit ratings at BB-.  S&P said the outlook is stable.


POPULAR INC: Inks Deal to Acquire Citibank NA's Retail Business
---------------------------------------------------------------
Popular Inc. has signed a definitive agreement with Citibank N.A., a
member of Citi, under which Popular Inc. will acquire Citibank's retail
business in Puerto Rico.

Citibank's retail operations consist of 17 financial centers,
approximately 230 employees, US$1.1 billion in deposits and
US$230 million in loans.

"This transaction further solidifies our leadership in Puerto Rico,"
Richard L. Carrion, chairman of the board and chief executive officer of
Popular Inc., said.  "We are committed to Puerto Rico, where Popular was
founded more than a century ago. The island's financial sector was
expected to consolidate.  This is a step in that direction."

"The deal continues to build our retail base in this competitive
financial market.  We are looking forward to serve our new clientele with
the innovation and values that set Popular apart," David H. Chafey Jr.,
president of Banco Popular de Puerto Rico, said.

Popular will retain substantially all of Citibank's retail business
employees.  The transaction, which was unanimously approved by the board
of directors of both companies, is subject to regulatory approval and
other customary closing conditions.  The transaction is expected to close
in the fourth quarter of 2007.

Citigroup Global Markets acted as exclusive financial advisor to
Citibank N.A. Paul, Weiss, Rifkind, Wharton, & Garrison LLP served as
legal counsel to Citibank N.A., and Fiddler Gonzalez & Rodriguez, PSC
served as legal counsel to Popular Inc.

                    About Citibank N.A.

Headquartered in San Juan, Puerto Rico, Citibank N.A. --
http://www.citigroup.com/-- has had a presence in Puerto Rico since 1918,
and the company has a consumer and corporate customer base of more than
716,000 accounts.  The company's 2,000 employees serve their local
communities, providing banking services, insurance and investment products
to customers.

                      About Popular Inc.

Headquartered in in Puerto Rico, Popular Inc. (Nasdaq: BPOP) is a full
service financial institution with operations in Puerto Rico, the United
States, the Caribbean and Latin America.  With over 300 branches and
offices, the company offers retail and commercial banking services through
its franchise, Banco Popular de Puerto Rico, well as auto and equipment
leasing and financing, mortgage loans, consumer lending, investment
banking, broker/dealer and insurance services through specialized
subsidiaries.  In the United States, the company has established a
community banking franchise providing a broad range of financial services
and products to the communities it serves.

                        *     *     *

As reported in the Troubled Company Reporter on May 9, 2007, Fitch Ratings
has downgraded Individual rating of Popular Inc. to 'B/C' from 'B'.




=================================
T R I N I D A D   &   T O B A G O
=================================


DIGICEL LTD: Files Lawsuit Against Trinidad Firm
------------------------------------------------
Digicel has filed contempt of court charges in Trinidad & Tobago's high
court against fixed line operator Telecommunications Services of Trinidad
and Tobago and its board of directors, the Trinidad Guardian reports.

According to The Guardian, Digicel is accusing Telecommunications Services
of breaching a court order to interconnect with Digicel.

Telecommunications Services violated Justice Nolan Bureaux’s Feb. 15,
2007, order that the firm provide a fixed amount of interconnection
capacity, Business News Americas relates, citing Digicel.
Telecommunications Services has not provided almost half of the capacity
that the court ordered.

Telecommunications Services told The Guardian that it has provided the
full capacity for interconnection circuits based on Digicel's request to
date.

Telecommunications Services allegedly said that it had filed a request to
Justice Bureaux on July 19, 2007, to change the February 2007 ruling for
the supply of the additional capacity.  The firm claimed that a hearing of
its request is set for October 2007, BNamericas states.

Telecommunications Services said in its press release that consumers
across Trinidad and Tobago stand a fairer chance of benefitting from the
liberalization of the telecommunications industry.  This follows the High
Court’s decision that endorsed its and the Telecommunications Authority of
Trinidad and Tobago-appointed Arbitration Panel’s position on the setting
of reciprocal interconnection rates.  Justice Judith Jones dismissed
Digicel's claim that challenged the Arbitration Panel’s guidelines for
Telecommunications Services and Digicel to develop interconnection rates.

When the Arbitration Panel was set up, it was done with the understanding
that its decision would be binding on both Telecommunications Services and
Digicel.  When the Panel gave its ruling, Digicel reneged and, in October
2006, filed an application in the High Court of Trinidad and Tobago
seeking judicial review of the decision.

Telecommunications Services Legal and Regulatory Vice President Lisa Agard
said in a statement that the court’s decision was very important and the
company was elated at the outcome.  She commented, “In August 2006, the
Arbitration Panel had set out a range of rates between TT$0.38 and TT$0.53
for mobile termination.  This in their opinion represented a fair rate for
an efficient operator in Trinidad and Tobago and was reflective of the
rates proposed by TSTT.”

Ms. Agard said in a statement that if Digicel accepted this threshold,
customer rates could be stable.   She noted, “Instead they wanted to make
TSTT [Telecommunications Services] pay in excess of 100% more than what
they would pay TSTT in return.  By extension customers would have had to
pay more.  That position flies in the face of TSTT’s goal to protect
consumers’ interests in whatever we do.”

Ms. Agard stated, “While TSTT is pleased that the High Court upheld the
Panel’s recommendation for reciprocal interconnection rates, including the
mobile termination rates, it is very disappointing that almost a year
after the Panel’s decision, Digicel has refused to sign an interconnection
agreement with TSTT.”

It was particularly disturbing to hear Digicel’s Executives speak of the
Panel as not making a fair decision in this matter, Ms. Agard said.  The
Panel’s decision was arrived at after an extensive hearing.  Both sides
had telecommunications regulatory experts from all over the world and the
Panel also had the benefit of a report from an independent economic expert
agreed upon by the parties and appointed by the Panel.  In addition, both
Telecommunications Services’ and Digicel’s cost models were submitted to
the Panel.  The entire process lasted about eight months.

“We are happy to be able to finally put this matter behind us.  TSTT is
ready to sign an interconnect agreement and has been ready to do so since
August last year,” Ms. Agard stated.

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

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

Digicel Group Ltd.

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

Digicel Ltd.

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

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

Digicel International Finance Ltd.

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

Fitch said the outlook on all ratings was stable.




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


CMS ENERGY: Unit Declares Quarterly Dividends on Preferred Stock
----------------------------------------------------------------
The Board of Directors of Consumers Energy, the principal subsidiary of
CMS Energy (NYSE: CMS), has declared regular quarterly dividends on both
series of the company's preferred stock.

The following dividends are payable Oct. 1, 2007 to shareholders of record
Sept. 6, 2007: US$1.04 per share on the US$4.16 stock, and US$1.125 per
share on the US$4.50 stock.

Also, a dividend of US$0.96875 per security on CMS Energy's Quarterly
Income Preferred Securities is payable Oct. 15, 2007, to holders of record
on Sept. 30, 2007.  CMS Energy will pay the trustee the interest on
related debentures to cover the dividend.

Based in Jackson, Michigan, CMS Energy Corporation is an
electric and natural gas utility, natural gas pipeline systems,
and independent power generation operator.  The company has
offices in Venezuela.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Aug. 8, 2007, Fitch placed these ratings on Rating Watch Positive:

CMS

  -- Issuer Default Rating (IDR) 'BB-';
  -- Senior secured bank loan at 'BB+';
  -- Senior unsecured debt at 'BB-';
  -- Preferred stock 'B'.

CMS Energy Trust I

  -- Preferred stock 'B'.

Consumers Energy

  -- IDR 'BB+';
  -- Senior secured debt 'BBB';
  -- Senior unsecured debt 'BBB-';
  -- Preferred stock 'BB+'.

Consumers Energy Financing I

  -- Preferred stock 'BB+'.


PEABODY ENERGY: Hires Scott Durgin as Operations Manager
--------------------------------------------------------
Peabody Energy Corporation has named Scott N. Durgin Operations Manager
for the Rawhide Mine near Gillette, Wyoming.  Mr. Durgin is responsible
for the day-to-day operations activities at the 17 million ton-per-year
mine, including safety, continuous improvement, sourcing, environmental
management and finance.  He reports to Powder River Basin Group Executive
D.L. Lobb.

"Scott has broad-based engineering, operations and continuous
improvement experience," said Mr. Lobb. "I'm confident his leadership will
help us continue to execute the basics through safe, low-cost, and
productive
operations."

Most recently, Mr. Durgin served as Senior Manager of Operations Support
at Peabody's North Antelope Rochelle Mine, the nation's premier ultra-low
sulfur mine.  In this position, he helped lead engineering efforts to
commission a Bucyrus-Erie 2570 dragline and in-pit conveyor system that
together will reduce Peabody's fuel costs by 16 percent and increase
productivity by more than 10 percent.

He joined a Peabody subsidiary in 1996 as a mine engineer and has served
in multiple mine management positions, including Production Manager at the
North Antelope Rochelle Mine and as an Engineering and Environmental
Manager at Peabody's Caballo Mine.

Mr. Durgin holds both a Bachelor of Science in Mining Engineering and a
Master of Science in Technical Management from the South Dakota School of
Mines and Technology.  Mr. Durgin serves on the Mining Engineering and
Management Program Industrial Advisory Board of the South Dakota School of
Mines and Technology and is a member of Society of Mining Engineers and
Society of Explosive Engineers.

Headquartered in St. Louis, Missouri, Peabody Energy Corporation
(NYSE: BTU) -- http://www.peabodyenergy.com/-- is the world's
largest private-sector coal company, with 2005 sales of 240
million tons of coal and US$4.6 billion in revenues.  Its
coal products fuel 10% of all U.S. and 3% of worldwide
electricity.  The company has coal operations in Venezuela.

                        *     *     *

As reported in the Troubled Company Reporter on Mar 9, 2007,
Moody's Investors Service reported that, after the adoption of
final guidelines for preferred stock and hybrid securities
notching, it downgraded Peabody Energy Corporation's hybrid
instrument to Ba3.  This instrument has been placed on review
for downgrade.


* VENEZUELA: Sells US$93 Million of Bonds Due 2013
--------------------------------------------------
The Venezuelan government offerred Aug. 9 bonds totaling US$93 million in
the local market, Bloomberg News reports.  The bonds will pay a 9.625%
interest annually, and will become due in November 2013.

The government attempted to sell bonds on Aug. 8 but the process was
unsuccessful because bond traders said the government refused to pay the
yields investors demanded on the securities, Bloomberg relates.

Investors are demanding yields above 10 percent due to accelerating
inflation in the South American country.

"The banks are telling the government: We need something better than 9%,"
aid Alejandro Gonzalez, a bond trader with brokerage Solfin Sociedad de
Corretaje de Valores in Caracas explained to Bloomberg.  "With inflation
at 17 percent, 9 percent doesn't cut it."

                        *     *     *

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.


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

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


                        ***********


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

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

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

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

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

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


           * * * End of Transmission * * *