TCRLA_Public/070821.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 21, 2007, Vol. 8, Issue 165

                          Headlines

A R G E N T I N A

ABSORBENTES ARGENTINOS: Claims Verification Deadline Is Oct. 24
ANTU APLICACIONES: Proofs of Claim Verification Ends on Sept. 14
C.G. MAR: Proofs of Claim Verification Deadline Is Aug. 31
EL PASO: Buying Peoples Energy for US$875 Million
GRAN MANZANA: Proofs of Claim Verification Deadline Is Oct. 3

LEPICA SRL: Proofs of Claim Verification Is Until Oct. 1
MALFITANA SA: Proofs of Claim Verification Is Until Oct. 19
NUEVO BANCO: Moody's Assigns Ba3 Currency Deposit Ratings
PETROLEOS DE VENEZUELA: Argentine Unit Chief Resigns
TELECOM ARGENTINA: Reduces Call Rates to Peru by 50%

TELEFONICA DE ARGENTINA: Reduces Call Rates to Peru by 50%

* ARGENTINA: Inks Oglan Confidentiality Pact with Petroecuador


B E R M U D A

CRIMEA INC: Proofs of Claim Filing Ends Tomorrow
CRIMEA INC: Sets Final Shareholders Meeting for Tomorrow
MAN ARAA: Proofs of Claim Filing Deadline Is Tomorrow
MAN ARAA: Will Hold Final General Meeting on Sept. 28
MAN BENTLEY: Holding Final Shareholders Meeting on Sept. 28

MAN BENTLEY: Proofs of Claim Filing Ends Tomorrow
MARTIN CURRIE: Proofs of Claim Filing Is Until Aug. 28
NORTH AMERICAN: Proofs of Claim Filing Deadline Is Aug. 24
NORTH AMERICAN: Sets Final General Meeting for Sept. 14
SCOTTISH RE: Has Over US$500MM Available Liquidity as of June 30

SCOTTISH RE: Paul Goldean Serves as CEO for North America


B O L I V I A

HANOVER COMPRESSOR: Redeems US$383 Mil. of Senior Secured Notes
INTERNATIONAL PAPER: Forms 50/50 Joint Venture with Ilim Holding


B R A Z I L

AES CORP: Unit Says 49.99% Stake Appraisals Ending This Month
AMERICAN AIRLINES: Will Rehire 460 Flight Attendants
BANCO NACIONAL: 49.99% Brasiliana Stake Appraisals Wrapping Up
BANCO NACIONAL: Disbursements Top BRL60.9 Billion in 12 Months
BANCO NACIONAL: Earns BRL4.4 Million for First Six Months

BANCO NACIONAL: Raises Yearly Loan Limit to BRL65 Billion
BANCO PROSPER: Moody's Assigns D- Financial Strength Rating
BRASIL TELECOM: Value-Added Services Comprising 10% of Revenues
BRASKEM: Won't Keep Shares in Petroflex
BUCKEYE TECH: Redeems US$383 Million of Senior Secured Notes

COMPANHIA PARANAENSE: Wants Bovespa Level 1 Trading Status
DELPHI CORP: Inks MOU with Steelworkers & General Motors
GENERAL MOTORS: Inks MOU with Steelworkers & Delphi Corp.
GENERAL MOTORS: Union Warns of Strike If Contract Talks Fail
PETROLEOS DE VENEZUELA: Starting Work on Plant with Petrobras

* BRAZIL: Pernambuco Refinery Works to Begin Next Month


C A Y M A N   I S L A N D S

ASSET BACK: Proofs of Claim Filing Ends on Aug. 23
AZEN OIL: Proofs of Claim Filing Ends Today
BEAUTY POINT: Final Shareholders Meeting Is on Aug. 23
CATLEIA OIL: Proofs of Claim Filing Deadline Is Tomorrow
CORFE HOLDINGS: Sets Final Shareholders Meeting for Aug. 23

CREAFIN FUND: Proofs of Claim Filing Is Until Aug. 25
CYGNUS ASSET: Proofs of Claim Filing Ends on Aug. 28
EACM SELECT: Proofs of Claim Filing Deadline Is Aug. 28
FRONTIER IV: Proofs of Claim Filing Is Until Aug. 26
IVY PARTNERS: Proofs of Claim Filing Deadline Is Aug. 23

MARATHON PETROLEUM: Holds Final Shareholders Meeting Today
PLAZA GLOBAL: Proofs of Claim Filing Is Until Aug. 23
Q INVESTMENT: Proofs of Claim Filing Deadline Is Aug. 23
SHINSEI FUNDING: Proofs of Claim Filing Ends on Aug. 23
STONE CREEK: Proofs of Claim Filing Deadline Is Aug. 23

TAIB FUNDS: Proofs of Claim Filing Deadline Is Tomorrow
UFJ CAPITAL: Proofs of Claim Must be Filed by Aug. 23
URANUS LIMITED: Proofs of Claim Must be Filed by Aug. 23


C H I L E

BELL MICROPRODUCTS: Obtains Add'l Nasdaq Determination Notice
BOSTON SCIENTIFIC: Mulls Cardiac & Vascular Surgery Units Sale
SHAW GROUP: Unit Gets US$50-Million Deal with Dagu Chemical


C O L O M B I A

ECOPETROL: Sets COP1,400 Per Share Price in IPO
PARKER DRILLING: Gets Official Letter from Ministry of Finance


D O M I N I C A N   R E P U B L I C

PRC LLC: S&P Lowers Rating on US$160-Million Credit to BB-


E C U A D O R

PETROECUADOR: Inks Oglan Confidentiality Pact with Enarsa
PETROECUADOR: Will Take Charge of Panacocha Field


E L   S A L V A D O R

* EL SALVADOR: Obtains US$1-Mil. Financing for Support Program


H O N D U R A S

PAYLESS SHOESOURCE: Changes Company Name to Collective Brands


J A M A I C A

DYOLL GROUP: Board Mulling Firm's Wind Up
KAISER ALUMNIUM: Davenport Ups Rating on Shares To Strong Buy


M E X I C O

CORPORACION DURANGO: Extends Tender Offer Period to Aug. 24
CORPORACION INTERAMERICANA: S&P Puts Low B Ratings on Watch Pos.
LEVI STRAUSS: Moody's Affirms B1 Corporate Family Rating
QUAKER FABRIC: Case Summary & 39 Largest Unsecured Creditors
QUAKER FABRIC: Files for Chapter 11 Bankruptcy Protection

RYERSON INC: ISS Suggests Re-Election of Board of Directors
TELTRONICS INC: Posts US$1.5 Mil. Net Loss in Qtr. Ended June 30
URBI DESARROLLOS: Moody's Places Ba3 Rating on MXN3-Bil. Program


P U E R T O   R I C O

ADELPHIA COMM: Reports Distributions to Allowed Claim Holders
BARMA FOODS: Case Summary & 22 Largest Unsecured Creditors
MAIDENFORM: Moody's Puts Ba2 Rating on US$100-Mil. Term Loan


V E N E Z U E L A

PEABODY ENERGY: Reports Organizational Changes
TIMKEN: Paying US$0.17 Per Share Quarterly Dividend on Sept. 5
TIMKEN CO: Explores Strategic Alternatives to Accelerate Growth

* VENEZUELA: Cantv Reduces Call Rates to Peru by 50%
* Large Companies with Insolvent Balance Sheets


                          - - - - -


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


ABSORBENTES ARGENTINOS: Claims Verification Deadline Is Oct. 24
---------------------------------------------------------------
Gabriel Eduardo Bigal, the court-appointed trustee for
Absorbentes Argentinos S.R.L.'s bankruptcy proceeding, verifies
creditors' proofs of claim on Oct. 24, 2007.

Mr. Bigal 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 Absorbentes
Argentinos 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 Absorbentes
Argentinos' accounting and banking records will be submitted in
court.

Infobae didn't state the reports submission deadlines.

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

The trustee can be reached at:

         Gabriel Eduardo Bigal
         Avenida Callao 1121
         Buenos Aires, Argentina


ANTU APLICACIONES: Proofs of Claim Verification Ends on Sept. 14
----------------------------------------------------------------
Hugo Oscar D. Ubaldo, the court-appointed trustee for Antu
Aplicaciones Industriales Integradas S.A.'s bankruptcy
proceeding, verifies creditors' proofs of claim on
Sept. 14, 2007.

Mr. Ubaldo will present the validated claims in court as
individual reports on Oct. 26, 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 Antu Aplicaciones 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 Antu Aplicaciones'
accounting and banking records will be submitted in court on
Dec. 7, 2007.

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

The trustee can be reached at:

         Hugo Oscar D. Ubaldo
         Tucuman 1577
         Buenos Aires, Argentina


C.G. MAR: Proofs of Claim Verification Deadline Is Aug. 31
----------------------------------------------------------
Juan Jose Rezzuto, the court-appointed trustee for C.G. Mar
S.A.'s bankruptcy proceeding, verifies creditors' proofs of
claim on Aug. 31, 2007.

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

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

The debtor can be reached at:

         C.G. Mar S.A.
         Belgrano 10.165, Mar del Plata
         Buenos Aires, Argentina

The trustee can be reached at:

         Juan Jose Rezzuto
         Rivadavia 3174, Mar del Plata
         Buenos Aires, Argentina


EL PASO: Buying Peoples Energy for US$875 Million
-------------------------------------------------
El Paso Corporation is acquiring Houston-based Peoples Energy
Production Company (Peoples Production), for US$875 million in
cash through its wholly owned subsidiary, El Paso Exploration &
Production Company.  Peoples Production, which is a subsidiary
of Integrys Energy Group, owns an estimated 305 billion cubic
feet equivalent (Bcfe) of proved reserves with current
production of 72 million cubic feet equivalent per day
(MMcfe/d).

Key Facts:

Proven Reserves: 305 Bcfe as of June 30, 2007

   -- 42% proved developed producing
   -- 94% natural gas
   -- Current production: 72 MMcfe/d

Current R/P: 12 years

Inventory: More than 600 proved and probable locations
Location of Properties: ArkLaTex, Texas Gulf Coast, San Juan
Basin, Mississippi, and Arkoma Basin

Acquisition Rationale:

   -- Excellent fit with current El Paso E&P operations
   -- Provides significant drilling inventory in current areas
      of operations
   -- Lengthens reserve life
   -- Adds talented staff
   -- Continues previously announced E&P portfolio high-grading
      process

"The acquisition of Peoples Production is an important step in
high-grading our portfolio and growing our E&P staff," said
Brent Smolik, president of El Paso Exploration & Production.
"This acquisition directly complements the divestiture program
we announced on Aug. 7 and builds our presence and inventory in
core operating areas.  Almost all of the Peoples Production
properties are within regions where we currently operate, and
roughly 80 percent of the acquired reserves and production are
in the ArkLaTex and Texas Gulf Coast areas, where we have a
proven track record of profitable growth.  This transaction also
provides a rich set of future opportunities that will help us to
more predictably grow our business, and we are very excited that
a talented group of exploration and production professionals
will join El Paso's E&P team."

The transaction has an effective date of June 30, 2007, is
expected to close during the third quarter of 2007.  The
transaction is subject to working capital and other customary
purchase price adjustments, as well as customary closing
conditions.

                       Financing Plan

The acquisition will be temporarily financed through general
corporate liquidity, augmented by upsizing EPEP's existing
revolving credit facility by US$500 million to US$1 billion.
All or a significant portion of the acquisition will be
permanently financed with the proceeds from the divestiture
program announced on Aug. 7, 2007.

Headquartered in Houston, Texas, El Paso Corp. (NYSE:EP)
-- http://www.elpaso.com/-- provides natural gas and related
energy products in a safe, efficient, and dependable manner.
The company owns North America's largest natural gas pipeline
system and one of North America's largest independent natural
gas producers.  The company has operations in Argentina.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 15, 2007, Fitch Ratings has affirmed the ratings of El Paso
Corporation and its core pipeline subsidiaries, and assigned a
senior unsecured rating of 'BB+' to the company's proposed
offering of US$1.275 billion of senior unsecured notes due in
2014 and 2017.  Proceeds from the note offering will be used
to refinance the US$1.2 billion of 7-3/4% senior unsecured notes
at the company's wholly owned upstream subsidiary, El Paso
Exploration & Production Company.  El Paso announced a cash
tender offer and consent solicitation for EEPC's notes on
May 29, 2007.  Fitch has also upgraded EEPC's ratings, which are
now the same as the parent company's ratings.  Fitch said the
rating outlook for all ratings is stable.


GRAN MANZANA: Proofs of Claim Verification Deadline Is Oct. 3
-------------------------------------------------------------
Norberto Alvarez, the court-appointed trustee for Gran Manzana
SRL's bankruptcy proceeding, verifies creditors' proofs of claim
on Oct. 3, 2007.

Mr. Alvarez will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 10 in Buenos Aires, with the assistance of clerk
No. 20, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections
and challenges that will be raised by Gran Manzana 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 Gran Manzana's
accounting and banking records will be submitted in court.

La Nacion didn't state the reports submission deadlines.

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

The debtor can be reached at:

         Gran Manzana SRL
         Bartolome Mitre 239
         Buenos Aires, Argentina

The trustee can be reached at:

         Norberto Alvarez
         Rodriguez Pena 189
         Buenos Aires, Argentina


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

Mr. Llorca 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 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 on Nov. 26, 2007.

Mr. Llorca 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 trustee can be reached at:

         Carlos Alberto Llorca
         Carlos Pellegrini 385
         Buenos Aires, Argentina


MALFITANA SA: Proofs of Claim Verification Is Until Oct. 19
-----------------------------------------------------------
Edith Regazzoni, the court-appointed trustee for Malfitana SA's
bankruptcy proceeding, verifies creditors' proofs of claim on
Oct. 19, 2007.

Ms. Regazzoni will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 19 in Buenos Aires, with the assistance of clerk
No. 37, 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 Malfitana 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 Malfitana's
accounting and banking records will be submitted in court.

La Nacion didn't state the reports submission deadlines.

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

The debtor can be reached at:

         Malfitana SA
         Jorge Newbery 1651, local 21
         Buenos Aires, Argentina

The trustee can be reached at:

         Edith Regazzoni
         Carlos Pellegrini 465
         Buenos Aires, Argentina


NUEVO BANCO: Moody's Assigns Ba3 Currency Deposit Ratings
---------------------------------------------------------
Moody's Investors Service has assigned a bank financial strength
rating of E+ to Nuevo Banco Industrial de Azul S.A.

Moody's also assigned long- and short-term global local-currency
deposit ratings of Ba3 and Not Prime, as well as long- and
short-term foreign-currency deposit ratings of Caa1 and Not
Prime.  At the same time, Moody's has assigned a Aa2.ar local-
currency deposit rating and a Ba1.ar foreign currency deposit
ratings in the Argentine national scale.

The outlooks on the BFSR, on the local currency deposit, and on
the national scale ratings are all stable.  In addition, the
long-term foreign currency deposit rating has a positive outlook
in line with the outlook on the Argentine's foreign currency
deposit ceiling.

Moody's noted that the E+ BFSR reflects the bank's limited
franchise, which is focused on lending to small and medium-sized
companies, where it faces increasing competition, and also on
the retail segment.  Additionally, the rating incorporates the
bank's important market share as one of the most active traders
of government securities and foreign exchange in Argentina.

Moody's recognizes the importance of the trading activity to
Industrial's results, but it also believes that this activity
could potentially increase the volatility of the bank's
earnings, particularly in light of its risk management
practices, which lags those of its peers.

Moody's also points to Industrial's average asset-quality
indicators, which reflect the dynamics of its factoring
operations.  In addition, the rating is based on the limited
corporate governance, which derives from the bank's family
ownership and lack of board independence.

Moody's Ba3 global local-currency deposit rating incorporates
Banco Industrial's Baseline Credit Assessment of B1, as well as
Moody's assessment that there would be a moderate probability of
systemic support extended in case of stress because of the
bank's relatively modest market share in terms of deposits.
Such assessment results in a one-notch lift of the local
currency rating to Ba3.

These ratings were assigned to Nuevo Banco Industrial de Azul
S.A.:

  -- Bank Financial Strength Rating: E+, with stable outlook.

  -- Long- and short-term global local-currency deposit rating:
     Ba3 and Not Prime, with stable outlook.

  -- Long- and short-term foreign currency deposit rating: Caa1
     and Not-Prime.

  -- Long-Term National Scale Local-Currency Deposit Rating:
     Aa2.ar

  -- Long -Term National Scale Foreign Currency Deposit Rating:
     Ba1.ar

Nuevo Banco Industrial de Azul S.A is headquartered in Buenos
Aires, Argentina, and it had assets of ARS1.8 billion and
deposits for ARS0.8 billion, as of March 2007.


PETROLEOS DE VENEZUELA: Argentine Unit Chief Resigns
----------------------------------------------------
Venezuelan state-run oil firm Petroleos de Venezuela SA told
Fabiola Sanchez at the Associated Press that Diego Uzcategui
Matheus has resigned as the head of its Argentine unit.

The AP relates that Mr. Matheus left his post due to the
"scandal over a suitcase of cash found with a passenger on a
flight of Argentine and Venezuelan oil executives."

According to the AP, Mr. Matheus son Daniel Uzcategui Spetch and
Petroleos de Venezuela officials left Caracas on Aug. 4, 2007,
on board a plane chartered by Argentina's state energy firm,
with Alejandro Antonini Wilson -- a Venezuelan-American
entrepreneur who brought US$800,000 in undeclared cash into
Argentina.  Mr. Wilson left when customs officials found the
money.

The AP states that the confiscation of the cash resulted to
probes by prosecutors in Venezuela.  The nation's government
officials are denying accusations of connections to Mr. Wilson.

Published reports say that Mr. Spetch had several times
accompanied Mr. Wilson in trips around South America.

No one on the plane explained where the cash came from or what
it was for, according to the AP.

Meanwhile, Maria Martha Novatti -- a judge in Argentina --
ordered Mr. Wilson's arrest last week, Argentine state-owned
news agency Telam relates.

Petroleos de Venezuela head Rafael Ramirez claimed that the
scandal was part of a conspiracy by the US government against
Petroleos de Venezuela and President Chavez, the AP notes.

Petroleos de Venezuela said in a statement that it will
cooperate with authorities investigating the "incident."

The AP states that Argentine official Claudio Uberti had filed
his resignation when he was blamed for letting Mr. Wilson board
the plane.

Hector Vidal Albarracin, Mr. Wilson's legal representative in
Argentina, "excused himself from the case," the AP reports.  He
said that "it had taken on an eminently political character that
prevented him from continuing a strictly technical legal
defense."

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.


TELECOM ARGENTINA: Reduces Call Rates to Peru by 50%
----------------------------------------------------
Telecom Argentina offered 50% reductions on rates for calls to
Peru from Aug. 16 to Aug. 19, Business News Americas reports.

The reduction promotion was applied to fixed to fixed calls,
BNamericas says.

BNamericas relates that Argentine and Venezuelan telecoms
reduced fixed telephony calling rates to Peru by 50%, "as a mark
of solidarity" with the nation.

According to BNamericas, Peru suffered great loss of life and
damage to telecoms infrastructure in an earthquake last week.

Telefonica de Argentina and Venezuelan fixed line operator Cantv
also had said in separate statements that they would decrease
call rates, BNamericas states.

                  About Telefonica de Argentina

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

                    About Telecom Argentina

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: Reduces Call Rates to Peru by 50%
----------------------------------------------------------
Telefonica de Argentina offered 50% reductions on rates for
calls to Peru from Aug. 16 to Aug. 19, Business News Americas
reports.

The reduction promotion was applied to fixed to fixed calls,
BNamericas says.

BNamericas relates that Argentine and Venezuelan telecoms
reduced fixed telephony calling rates to Peru by 50%, "as a mark
of solidarity" with the nation.

According to BNamericas, Peru suffered great loss of life and
damage to telecoms infrastructure in an earthquake last week.

Telecom Argentina and Venezuelan fixed line operator Cantv also
had said in separate statements that they would decrease call
rates, BNamericas states.

                    About Telecom Argentina

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%).

                  About Telefonica de Argentina

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

                        *     *     *

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


* ARGENTINA: Inks Oglan Confidentiality Pact with Petroecuador
--------------------------------------------------------------
Argentine state-owned oil company Enarsa has signed a
confidentiality agreement with Ecuadorian counterpart
Petroecuador for the analysis and study of the Oglan field in
Ecuador, Business News Americas reports.

Enarsa said in a statement that the agreement is effective for
120 days.  Petroecuador will let Enarsa executives access
technical information on the field in Orellana.

BNamericas relates that information includes:

          -- geological data,
          -- geophysical data,
          -- maps,
          -- models, and
          -- exploration and production interpretations.

Enarsa could use the information to submit a development
proposal for Oglan to Petroecuador unit Petroproduccion,
BNamericas states.

                        *     *     *

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


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

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

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

The liquidator can be reached at:

        Elvon Clarke
        20 Victoria Street
        Hamilton, Bermuda HM11


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

         20 Victoria Street
         Hamilton, Bermuda HM11

These agendas will be taken during the meeting:

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

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

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

The liquidator can be reached at:

         Elvon Clarke
         20 Victoria Street
         Hamilton, Bermuda HM11


MAN ARAA: Proofs of Claim Filing Deadline Is Tomorrow
-----------------------------------------------------
Man Araa Limited's creditors are given until Aug. 22, 2007, to
prove their claims to Beverly Mathias, 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.

Man Araa's shareholders agreed on Aug. 6, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidator can be reached at:

       Beverly Mathias
       c/o Argonaut Limited
       Argonaut House, 5 Park Road
       Hamilton HM O9, Bermuda


MAN ARAA: Will Hold Final General Meeting on Sept. 28
-----------------------------------------------------
Man Araa Limited's final general meeting is scheduled on
Sept. 28, 2007, at 9:30 a.m., at:

       Argonaut Limited
       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 BENTLEY: Holding Final Shareholders Meeting on Sept. 28
-----------------------------------------------------------
Man Bentley Limited will hold its final shareholders meeting on
Sept. 28 2007, at 9:30 a.m., at:

         Argonaut Limited
         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.

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:

        Beverly Mathias
        c/o Argonaut Limited
        Argonaut House, 5 Park Road
        Hamilton HM O9, Bermuda


MAN BENTLEY: Proofs of Claim Filing Ends Tomorrow
-------------------------------------------------
Man Bentley Limited's creditors are given until Aug. 22, 2007,
to prove their claims to Beverly Mathias, 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.

Man Bentley's shareholders agreed on Aug. 6, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidator can be reached at:

        Beverly Mathias
        c/o Argonaut Limited
        Argonaut House, 5 Park Road
        Hamilton HM O9, Bermuda


MARTIN CURRIE: Proofs of Claim Filing Is Until Aug. 28
------------------------------------------------------
Martin Currie China Predecessor Fund Limited's creditors are
given until Aug. 28, 2007, to prove their claims to Marco Peter
Martin, 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.

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

The liquidator can be reached at:

       Peter Martin
       Thistle House, 5th Floor
       4 Burnaby Street, Hamilton
       Bermuda HMFX, Bermuda


NORTH AMERICAN: Proofs of Claim Filing Deadline Is Aug. 24
----------------------------------------------------------
North American Manufacturers Insurance Company Limited's
creditors are given until Aug. 24, 2007, to prove their claims
to Marco Montarsolo, 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.

North American's shareholders agreed on Aug. 6, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

       Marco Montarsolo
       Sofia House, 1st Floor
       48 Church Street, Hamilton
       Bermuda


NORTH AMERICAN: Sets Final General Meeting for Sept. 14
-------------------------------------------------------
North American Manufacturers Insurance Company Limited's final
general meeting is scheduled on Sept. 14, 2007, at 10:30 a.m.,
at:

       Sofia House, 1st Floor
       48 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.


SCOTTISH RE: Has Over US$500MM Available Liquidity as of June 30
----------------------------------------------------------------
Scottish Re Group Limited provided additional disclosure
regarding its sub-prime asset backed securities and Alt-A
residential mortgage backed securities holdings.  The disclosure
supplements the disclosure provided in its Form 10-Q for the
three months ended June 30, 2007, as filed with the Securities
and Exchange Commission on Aug. 14, 2007.

As of June 30, 2007, the company estimates that it had in excess
of US$500 million of available liquidity among itself and its
subsidiary, Scottish Annuity & Life Insurance Company (Cayman)
Ltd.  This amount represents liquidity in excess of liquidity
held by the company's insurance operating subsidiaries and
includes cash and marketable securities as well as US$275
million available under the Stingray facility.

Because the company has significant operations and capital
outside of the United States, the company does not believe that
limiting an analysis of its financial position to U.S. statutory
surplus calculated in accordance with the NAIC Accounting
Practices and Procedures Manual is an appropriate way to
evaluate the financial condition of its consolidated worldwide
operations.  The company's management believes that a more
appropriate measure is shareholders' equity. The company had
total shareholders' equity of about US$1.2 billion as of
June 30, 2007.

As long as the value of the assets in the securitization
portfolios is greater than the statutory reserves of the
underlying block of business, the company's operating
subsidiaries are not required to, among other things, pledge
additional assets to secure reserve credit outside of the
securitization structure.  Thus, the amount of invested assets
that exceeds statutory reserves within the securitization
portfolios represents additional protection from unexpected
market value declines in invested assets.

As of June 30, 2007, the total invested assets within the
Company's three securitization structures exceeded the statutory
reserves covered by the structures by about US$1.4 billion.

The company believes its current financial position provides it
with sufficient capital and liquidity to withstand temporary
market dislocations or potential losses arising from
underperformance of its subprime ABS and Alt-A holdings in the
current market environment.

                      About Scottish Re

Scottish Re Group Ltd. -- http://www.scottishre.com/-- is a
global life reinsurance specialist.  Scottish Re has operating
businesses in Bermuda, Grand Cayman, Guernsey, Ireland, the
United Kingdom, United States, and Singapore.  Its flagship
operating subsidiaries include Scottish Annuity & Life Insurance
Company (Cayman) Ltd. and Scottish Re (US), Inc.  Scottish Re
Capital Markets, Inc., a member of Scottish Re Group Ltd., is a
registered broker dealer that specializes in securitization of
life insurance assets and liabilities.

                        *     *     *

As reported on June 8, 2007, Fitch Ratings has upgraded Scottish
Re Group Ltd.'s (NYSE: SCT) Issuer Default Rating to 'BB-' from
'B+' and the Insurer Financial Strength ratings of its primary
operating subsidiaries to 'BBB-' from 'BB+'.  Fitch has removed
the ratings from watch positive and assigned a stable outlook.

As reported in the Troubled Company Reporter-Latin America on
Nov. 29, 2006, Moody's Investors Service disclosed that it
continues to review the ratings of Scottish Re Group Ltd. with
direction uncertain following the announcement by the company
that it has entered into an agreement to sell a majority stake
to MassMutual Capital Partners LLC, a member of the MassMutual
Financial Group and Cerberus Capital Management, L.P., a private
investment firm.

Moody's said the continuing review affects the debt rating of
Scottish Re (senior unsecured at Ba3), as well as the Baa3
insurance financial strength ratings of the company's core
insurance subsidiaries, Scottish Annuity & Life Insurance
Company (Cayman) Ltd. and Scottish Re (U.S.), Inc.  The
uncertain direction of the review indicates the possibility that
Scottish Re's ratings could be upgraded, downgraded, or
confirmed depending on future developments at Scottish Re.

These ratings continue on review with direction uncertain:

   Scottish Re Group Limited

   -- senior unsecured debt of Ba3;

   -- senior unsecured shelf of (P)Ba3; subordinate shelf of
      (P)B1;

   -- junior subordinate shelf of (P)B1;

   -- preferred stock of B2; and

   -- preferred stock shelf of (P)B2.

   Scottish Holdings Statutory Trust II

   -- preferred stock shelf of (P)B1

   Scottish Holdings Statutory Trust III

   -- preferred stock shelf of (P)B1

   Scottish Annuity & Life Insurance Co (Cayman) Ltd.

   -- insurance financial strength of Baa3

   Premium Asset Trust Series 2004-4

   -- senior secured debt of Baa3 (based on IFS of SALIC)

   Scottish Re (U.S.), Inc.

   -- insurance financial strength of Baa3

   Stingray Pass-Through Certificates

   -- senior secured debt of Baa3 (based on IFS rating of
      SALIC)


SCOTTISH RE: Paul Goldean Serves as CEO for North America
---------------------------------------------------------
Scottish Re Group Limited reported changes in its North America
life reinsurance segment.

Effective Aug. 20, 2007, Paul Goldean will serve as interim
President and Chief Executive Officer -- North America while
continuing in his role as Chief Administrative Officer --
Scottish Re Group Limited.  Mr. Goldean has been a key leader
within the company since he joined Scottish Re in 2002.  An
external search to identify a permanent North America CEO is
currently underway.

As announced on May 17, 2007, Cliff Wagner, President and Chief
Executive Officer - North America will leave the company.  Mr.
Wagner had served in the role of North America CEO since August
of 2006 and helped lead the company through the challenges of
this past year.  Prior to his current position, Mr. Wagner
served as Chief Actuary - Scottish Re Group Limited.  Best
wishes are extended to Mr. Wagner in his future endeavors.

"I am confident that Paul, working with our North America
leadership team, will continue to make progress towards our
goals of improving operational discipline, maintaining
competitive market position, and returning the segment to
profitability," stated George Zippel, President and Chief
Executive Officer -- Scottish Re Group Limited.

                      About Scottish Re

Scottish Re Group Ltd. -- http://www.scottishre.com/-- is a
global life reinsurance specialist.  Scottish Re has operating
businesses in Bermuda, Grand Cayman, Guernsey, Ireland, the
United Kingdom, United States, and Singapore.  Its flagship
operating subsidiaries include Scottish Annuity & Life Insurance
Company (Cayman) Ltd. and Scottish Re (US), Inc.  Scottish Re
Capital Markets, Inc., a member of Scottish Re Group Ltd., is a
registered broker dealer that specializes in securitization of
life insurance assets and liabilities.

                        *     *     *

As reported on June 8, 2007, Fitch Ratings has upgraded Scottish
Re Group Ltd.'s (NYSE: SCT) Issuer Default Rating to 'BB-' from
'B+' and the Insurer Financial Strength ratings of its primary
operating subsidiaries to 'BBB-' from 'BB+'.  Fitch has removed
the ratings from watch positive and assigned a stable outlook.

As reported in the Troubled Company Reporter-Latin America on
Nov. 29, 2006, Moody's Investors Service disclosed that it
continues to review the ratings of Scottish Re Group Ltd. with
direction uncertain following the announcement by the company
that it has entered into an agreement to sell a majority stake
to MassMutual Capital Partners LLC, a member of the MassMutual
Financial Group and Cerberus Capital Management, L.P., a private
investment firm.

Moody's said the continuing review affects the debt rating of
Scottish Re (senior unsecured at Ba3), as well as the Baa3
insurance financial strength ratings of the company's core
insurance subsidiaries, Scottish Annuity & Life Insurance
Company (Cayman) Ltd. and Scottish Re (U.S.), Inc.  The
uncertain direction of the review indicates the possibility that
Scottish Re's ratings could be upgraded, downgraded, or
confirmed depending on future developments at Scottish Re.

These ratings continue on review with direction uncertain:

   Scottish Re Group Limited

   -- senior unsecured debt of Ba3;

   -- senior unsecured shelf of (P)Ba3; subordinate shelf of
      (P)B1;

   -- junior subordinate shelf of (P)B1;

   -- preferred stock of B2; and

   -- preferred stock shelf of (P)B2.

   Scottish Holdings Statutory Trust II

   -- preferred stock shelf of (P)B1

   Scottish Holdings Statutory Trust III

   -- preferred stock shelf of (P)B1

   Scottish Annuity & Life Insurance Co (Cayman) Ltd.

   -- insurance financial strength of Baa3

   Premium Asset Trust Series 2004-4

   -- senior secured debt of Baa3 (based on IFS of SALIC)

   Scottish Re (U.S.), Inc.

   -- insurance financial strength of Baa3

   Stingray Pass-Through Certificates

   -- senior secured debt of Baa3 (based on IFS rating of
      SALIC)




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


HANOVER COMPRESSOR: Redeems US$383 Mil. of Senior Secured Notes
---------------------------------------------------------------
Hanover Compressor Company related that Hanover Equipment Trust
2001A, a special purpose Delaware business trust (HET 2001A),
will redeem all US$133 million of its outstanding 8.5% Senior
Secured Notes due 2008, and Hanover Equipment Trust 2001B, a
special purpose Delaware business trust, will redeem all US$250
million of its outstanding 8.75% Senior Secured Notes due 2011.

The indenture governing the 8.5% Notes permits the redemption of
all of the 8.5% Notes at a redemption price of 100% plus accrued
and unpaid interest to the date fixed for redemption.  The
indenture governing the 8.75% Notes permits the redemption of
all of the 8.75% Notes at a redemption price of 102.917% plus
accrued and unpaid interest to the date fixed for redemption.
The redemption date of both series of Notes is Sept. 17, 2007.

To commence the redemption process, Hanover Compression Limited
Partnership, an indirect wholly owned subsidiary of Hanover,
exercised its option to purchase from HET 2001A the gas
compression equipment currently under lease to HCLP from HET
2001A, and HCLP exercised its option to purchase from HET 2001B
the gas compression equipment currently under lease from HET
2001B.  HCLP expects to pay HET 2001A approximately US$137.7
million and to pay HET 2001B approximately US$266.3 million for
the equipment on the date the Notes are redeemed.  The trusts
will then use the proceeds from the equipment sale to fund the
redemption of the Notes and the related trust equity
certificates.

U.S. Bank Trust National Association is the trustee and
redemption agent for the Notes.  Formal notice of the redemption
setting forth the redemption procedures was sent to noteholders
on Aug. 17, 2007.

The redemption of the Notes is part of the refinancing plan of
Hanover and Universal Compression Holdings Inc. being
implemented in anticipation of the closing of their pending
merger, which is currently expected to occur on or about
Aug. 20, 2007, if the conditions to the closing have been
satisfied as of that date.  As part of the refinancing plan,
Exterran Holdings, Inc., which will be the publicly traded
holding company following the completion of the merger, has
engaged Wachovia Capital Markets, LLC and J. P. Morgan
Securities Inc. to arrange and syndicate a senior secured credit
facility, consisting of a revolving credit facility and a term
loan, and has engaged Wachovia to provide a new asset-backed
securitization facility to Exterran.  The primary purpose of
these new facilities will be to fund the redemption or
repurchase of all of Hanover's and Universal's outstanding debt
other than Hanover's convertible debt securities and the credit
facility of Universal's publicly traded subsidiary, Universal
Compression Partners, L.P.  The new facilities will replace
Hanover's and Universal's existing bank lines and Universal's
existing asset-backed securitization facility.  The closing of
the new facilities is subject to, among other things, the
receipt of sufficient commitments from participating lenders and
the execution of mutually satisfactory documentation.

               About Hanover Compressor Company

Headquartered in Houston, Texas, Hanover Compressor Company
(NYSE:HC) -- http://www.hanover-co.com/-- is in full service
natural gas compression and provider of service, fabrication and
equipment for oil and natural gas production, processing and
transportation applications.  Hanover sells and rents this
equipment and provides complete operation and maintenance
services, including run-time guarantees for both customer-owned
equipment and its fleet of rental equipment.  Founded in 1990
and a public company since 1997, Hanover's customers include
both major and independent oil and gas producers and
distributors as well as national oil and gas companies.  It has
locations in Argentina, Bolivia, Brazil, Colombia, Mexico, Peru,
Venezuela, India, China, Indonesia, Japan, Korea, Taiwan, the
United Kingdom, and Vietnam, among others.

                        *     *     *

As reported in the Troubled Company Reporter on Feb. 8, 2007,
Standard & Poor's Ratings Services placed the 'BB-' corporate
credit ratings on oilfield service company Hanover Compressor
Co. and its related entity Hanover Compression L.P. on
CreditWatch with positive implications.


INTERNATIONAL PAPER: Forms 50/50 Joint Venture with Ilim Holding
----------------------------------------------------------------
International Paper Co. and Ilim Holding S.A. have signed a
definitive agreement to form a 50:50 joint venture, the largest
foreign-domestic alliance in the Russian forest sector.  The
joint venture will operate as Ilim Group (Ilim).

"After extensive negotiations and due diligence, we remain
impressed with Ilim's performance and potential, and with demand
growth in Russia and Asia for our key products," International
Paper Chairman and Chief Executive Officer John Faraci said.
"Ilim has continued to strengthen its operations and
substantially improve its profitability, and we're investing at
a good multiple and expect attractive returns.  As we continue
to transform International Paper, focusing on our global
uncoated paper and packaging businesses, the joint venture with
Ilim positions us very well within low-cost, high-growth markets
in Russia and Asia."

According to the terms of the agreement, International Paper
will purchase 50 percent of Ilim Holding, S.A., for
approximately US$650 million, subject to certain conditions at
closing.  Ilim Holding has an enterprise value of approximately
US$1.6 billion, including debt, EBITDA of approximately US$212
million for the first six months of 2007, and projected 2007
EBITDA of more than US$400 million.  The deal received approval
from the Russian Federal Antimonopoly Service in June and is
expected to close early in the fourth quarter of 2007.

"The alliance between International Paper and Ilim Group will
allow us to create value by linking the unique capabilities each
partner offers," said International Paper Senior Vice President
and President of IP Europe Mary Laschinger.  "International
Paper has been a committed part of the Russian forest products
industry since 1999 through the ownership of our Svetogorsk
Mill, and we look forward to the opportunity to grow the joint
venture, while contributing to the development of a sustainable
forest products industry in Russia."

"We are pleased to announce the beginning of a new stage in the
Group's development," said Ilim Group Chairman Zakhar Smushkin.
"This alliance is an example of cooperation between Russian and
international companies toward effective development and
processing of Russian forest resources."

Mr. Smushkin continued, "I hope this alliance will not just give
a powerful impetus toward Ilim Group's development but will also
open the way for the inflow of investment and know-how that our
industry so badly needs.  Our alliance is a response to global
market challenges and the appeals from the Russian President and
the Government of Russia.  Cooperation sets the pace for
increasing the share of value-added products in our industry and
propels Russia to its well-deserved place in the global pulp and
paper industry."

Ilim Group operates the largest pulp and paper mills located in
the European and Siberian regions of Russia. On July 1, 2007,
the ownership of the mills (formerly, Ilim Pulp's Kotlas Pulp
and Paper Mill, Bratsk Wood Industrial Complex and Ust-Ilimsk
Wood Industrial Complex) was consolidated under Russian open
joint-stock company Ilim Group, a subsidiary of Ilim Holding.
These mills produce annually more than 2.5 million tons of
market pulp, uncoated papers and packaging.  The joint venture
will continue to operate this business.

A key element of the proposed joint venture strategy is a long-
term investment program in which the joint venture would invest,
through cash from operations and additional debt, approximately
US$1.5 billion in Ilim's four mills over approximately five
years.  This unprecedented investment in the Russian pulp and
paper industry would be used to upgrade equipment, increase
production capacity and allow for new high-value uncoated paper,
pulp and corrugated packaging product development.

The joint venture will be headquartered in St. Petersburg,
Russia, and its board of directors will continue to be chaired
by Mr. Smushkin and will include four members each from
International Paper and Ilim Group.  In addition, Ilim has
accepted International Paper's nomination of IP Senior Vice
President Paul Herbert to be the joint venture's CEO.

The pulp and paper mill that International Paper currently owns
and operates in Svetogorsk, in Russia's Leningrad region, will
not be owned by the joint venture.  Similarly, Ilim Pulp's wood-
products enterprises will not be integrated into the joint
venture; instead Ilim plans to combine them to create Russia's
largest timber-processing holding company.

                        About Ilim Group

Ilim Group -- http://www.ilimgroup.com/-- was registered in St.
Petersburg on Sept. 27, 2006.  In 2007, the Group was joined by
Kotlas Pulp and Paper Mill, Bratsk Pulp and Containerboard Mill
and Ust-Ilimsk Pulp and Paper Mill as the mills were converted
to a single share.  On July 2 Ilim Group started its activities
as a unified company. Production assets of the Group are
structured on the production and geographical basis and include
the following business units: SevCBP (Northern Pulp and Paper
Production), SibCBP (Siberian Pulp and Paper Production),
Consumer Packaging and Corrugated Packaging.  The company
also includes centralized service providers to the Group's
branches and subsidiaries.

                    About International Paper

Based in Stamford, Connecticut, International Paper Co.
(NYSE: IP) -- http://www.internationalpaper.com/-- is in the
forest products industry for more than 100 years.  The company
is currently transforming its operations to focus on its global
uncoated papers and packaging businesses, which operate and
serve customers in the U.S., Europe, South America and Asia.
Its South American operations include, among others, facilities
in Argentina, Brazil, Bolivia, and Venezuela.  These businesses
are complemented by an extensive North American merchant
distribution system.  International Paper is committed to
environmental, economic and social sustainability, and has a
long-standing policy of using no wood from endangered forests.

                        *     *     *

International Paper Co. carries Moody's Investors Service's Ba1
senior subordinate rating and Ba2 Preferred Stock rating.




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


AES CORP: Unit Says 49.99% Stake Appraisals Ending This Month
-------------------------------------------------------------
Britaldo Soares, chief executive officer of The AES Corp.'s
Brazilian unit -- Brasiliana, told the press that the unit
expects appraisals of a 49.99% stake in the company to conclude
by the end of this month.

Business News Americas relates that the date of the sale of the
stake will depend on the stake owner Banco Nacional de
Desenvolvimento Economico e Social SA.

As reported in the Troubled Company Reporter-Latin America on
March 26, 2007, Banco Nacional decided to sell a non-controlling
stake in power holding firm Brasiliana.

According to BNamericas, Banco Nacional informed Brasiliana it
would sell its entire stake in the company.

Mr. Soares commented to BNamericas, "Both AES and BNDES [Banco
Nacional] are doing separate appraisals and if the difference is
below 10%, then the process will go ahead. If it's more than
10%, then according to the shareholder agreement, a third
independent appraisal must be made."

The shareholder accord for Brasiliana says that Banco Nacional
can force AES -- which holds 50.01% of Brasiliana -- to sell
control of Brasiliana if it decides not to exercise its right
and purchase the bank's shares, BNamericas says, citing Mr.
Soares.  AES will still decide on the matter.  The firm plans to
"continue to simplify" its Brazilian assets' shareholding
structure.

BNamericas relates that AES wants to continue controlling
Brasiliana and other its other Brazilian units like Eletropaulo
and AES Sul.  AES is pleased with returns from Eletropaulo,
which began distributing dividends this year as market
conditions have improved.  AES Sul is profitable.  Opportunities
in the generation business would grow as power demand is
expected to increase 5% per year.

"The company's top management has already said it wants to
remain in Brazil.  There are several business opportunities
here," Mr. Soares told BNamericas.

                      About Brasiliana

Brasiliana, the holding power firm of most Brazilian assets of
AES Corp., controls power generation firms Eletropaulo, AES
Tiete and AES Uruguaiana.

                    About Banco Nacional

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

                          About AES

AES Corp. -- http://www.aes.com/-- is a global power company.
The company operates in South America, Europe, Africa, Asia and
the Caribbean countries.  Specifically, it also has operations
in India.  Generating 44,000 megawatts of electricity through
124 power facilities, the company delivers electricity through
15 distribution companies.  The company'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.

                        *     *     *

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.


AMERICAN AIRLINES: Will Rehire 460 Flight Attendants
----------------------------------------------------
American Airlines told the Associated Press that it will rehire
460 flight attendants dismissed when it lost money after the
2001 terror attacks.

The "recalls" would resolve staffing needs and "offset expected
attrition" this year, the AP says, citing American Airlines.

The AP notes that the flight attendants worked for TWA, which
American Airlines' parent AMR Corp. "bought out of bankruptcy"
in 2001.  The TWA workers were first to be laid off as AMR got
rid of thousands of jobs.

American Airlines rehired 200 flight attendants in July 2007,
the AP relates.  More than 50% of those workers were formerly
employed by TWA.  The airline has contacted over 1,900
attendants about returning to work since 2003.

American Airlines spokesperson Tim Smith told the AP that the
airline has 17,500 attendants.  It has laid off 1,600 workers.
The 460 to be recalled will come from the furloughed group.

American Airlines has rehired over 200 pilots since January
2007.  They were the first pilots called back since 2001, the AP
states, citing Mr. Smith.

Based in Fort Worth, Texas, American Airlines Inc., a wholly
owned subsidiary of AMR Corp., operates the largest scheduled
passenger airline in the world with service throughout North
America, the Caribbean, Latin America, Europe and Asia.
American Airlines flies to Belgium, Brazil, Japan, among others.

                        *     *     *

As reported in the Troubled Company Reporter on May 25, 2007,
Standard & Poor's Ratings Services assigned its 'CCC+' rating to
American Airlines Inc.'s (B/Positive/--) US$125 million
Dallas/Fort Worth International Airport special facility revenue
refunding bonds, series 2007, due 2030.  The bonds are
guaranteed by American's parent, AMR Corp. (B/Positive/B-2), and
are secured by payments made by American to the airport
authority.  Proceeds are being used to refund the outstanding
revenue bonds, series 1992 (rated 'CCC+'), whose rating was
withdrawn.


BANCO NACIONAL: 49.99% Brasiliana Stake Appraisals Wrapping Up
--------------------------------------------------------------
Britaldo Soares, chief executive officer The AES Corp.'s
Brazilian unit Brasiliana, told the press that the unit expects
appraisals of a 49.99% stake that Banco Nacional de
Desenvolvimento Economico e Social SA holds in the firm to
conclude by the end of this month.

Business News Americas relates that the date of the sale of the
stake will depend on Banco Nacional.

As reported in the Troubled Company Reporter-Latin America on
March 26, 2007, Banco Nacional decided to sell a non-controlling
stake in power holding firm Brasiliana.

According to BNamericas, Banco Nacional informed Brasiliana it
would sell its entire stake in the company.

Mr. Soares commented to BNamericas, "Both AES and BNDES [Banco
Nacional] are doing separate appraisals and if the difference is
below 10%, then the process will go ahead. If it's more than
10%, then according to the shareholder agreement, a third
independent appraisal must be made."

The shareholder accord for Brasiliana says that Banco Nacional
can force AES -- which holds 50.01% of Brasiliana -- to sell
control of Brasiliana if it decides not to exercise its right
and purchase the bank's shares, BNamericas says, citing Mr.
Soares.  AES will still decide on the matter.  The firm plans to
"continue to simplify" its Brazilian assets' shareholding
structure.

BNamericas relates that AES wants to continue controlling
Brasiliana and other its other Brazilian units like Eletropaulo
and AES Sul.  AES is pleased with returns from Eletropaulo,
which began distributing dividends this year as market
conditions have improved.  AES Sul is profitable.  Opportunities
in the generation business would grow as power demand is
expected to increase 5% per year.

"The company's top management has already said it wants to
remain in Brazil.  There are several business opportunities
here," Mr. Soares told BNamericas.

                      About Brasiliana

Brasiliana, the holding power firm of most Brazilian assets of
AES Corp., controls power generation firms Eletropaulo, AES
Tiete and AES Uruguaiana.

                         About AES

AES Corp. -- http://www.aes.com/-- is a global power company.
The company operates in South America, Europe, Africa, Asia and
the Caribbean countries.  Specifically, it also has operations
in India.  Generating 44,000 megawatts of electricity through
124 power facilities, the company delivers electricity through
15 distribution companies.  The company'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.

AES has been in Eastern Europe for over ten years, since it
acquired three power plants in Hungary in 1996.  Currently, AES
has two distribution companies in Ukraine, which serve 1.2
million customers and generation plants in the Czech Republic
and Hungary.  AES is also the leading company in biomass
conversion in Hungary, generating 37% of the nation's total
renewable generation in 2004.

                     About Banco Nacional

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

                        *     *     *

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


BANCO NACIONAL: Disbursements Top BRL60.9 Billion in 12 Months
--------------------------------------------------------------
Bank Nacional de Desenvolvimento Economico e Social's
performance reached a new record within the 12 months ended in
July.  Disbursements amounted to BRL60.9 billion, representing a
growth of 35% in relation to the same previous period. Approvals
amounted to BRL92.5 billion, equivalent to an increase of 59%
under the same basis of comparison.  That result confirms the
tendency of segregating the amounts disbursed and approved,
indicating future increases to the Bank's disbursements.

Other indicators also reflected an expansion in the volume of
projects received by BNDES.  Eligibilities amounted to BRL109.9
billion, with an increase of 43%, and consultations forwarded to
the Bank within the last 12 months added up to projects in the
amount of BRL123.9 billion, a growth of 43%.  Expansion of the
indicators within the seven first months of 2007 is also in line
with these positive results.  In the period, disbursements grew
38.2% in relation to January/July 2006, to BRL31.2 billion, and
approvals increased 59.3%, reaching BRL48.8 billion.

                       12-Month Performance

Infrastructure

BNDES's figures show again an expansion in disbursements and
approvals to infrastructure, as occurred in previous months,
confirming a tendency of a strong growth to that sector.  The
increase in approvals to infrastructure accounts for most of the
segregation between the amounts disbursed and investments
approved.

Within the last 12 months ended in July, disbursements to
infrastructure amounted to BRL198 billion, an increase of 23% in
relation to the same previous period.  Approvals reached BRL359
billion between August 2006 and July 2007, an expansion of 125%,
reflecting projects included in the Growth Acceleration Program
[PAC].

Between August 2006 and July 2007, approvals to infrastructure
endeavors represented 39% of total approved by the Bank, a
percentage that has been expanding.  In 2006, the participation
of that sector in total volume of approvals had been 32%.

As to electric energy, approvals grew 134%, reaching BRL7.2
billion.  Among the projects there is a hydroelectric plant in
Foz do Chapeco, in addition to financings of about BRL1 billion
to transmission lines and Small Hydroelectric Plants [PCHs]
projects.  Disbursements to that sector, of BRL4.1 billion,
increased 16% in the same period.

Highlights in the area of ground transportation, which grew 28%
in approvals, amounting to BRL11.8 billion, were ALL BR (BRL1.9
billion) and the expansion of Estrada de Ferro Caraj s, of
Companhia Vale do Rio Doce, with BRL774.6 million, in addition
to several operations in the trading line of capital goods, in
the amount of BRL6.9 billion.

Civil construction received BRL1.8 billion, funds 19% over the
12 previous months.  Approvals to that sector increased 72%
under the same basis of comparison, amounting to BRL3 billion
until July 2007.

Telecommunications, an area that received BRL2.1 billion, had an
increase of 37% in disbursements and 1.921% in approvals within
the last 12 months.  Such strong expansion represents financings
of BRL6.2 billion, which will be disbursed within next months.
Among the enterprises supported by the Bank are Brasil Telecom,
Vivo and Telemar.

Industry, farming and services

BNDES disbursed BRL31 billion to the industrial sector between
August 2006 and July 2007, which represented a growth of 35% in
relation to the same previous period.  Approvals amounted to
BRL43.7 billion, equivalent to an increase of 28%.

Disbursements to farming amounted to BRL4.4 billion, a
significant result that reveals an increase of 26% in relation
to the 12 previous months.  The amount of approvals was even
higher, BRL5.4 billion, equivalent to an expansion of 56% under
the same basis of comparison.  Farming performance reflects the
beginning of a new cycle of growth, after the crisis in last
years.  BNDES's figures reveal a significant increase in
investments, mainly drew by a demand for machinery and equipment
to agriculture (Finame Agriculture). The sector of trading and
services disbursed BRL4.7 billion (increase of 91% in 12 months)
and approved BRL7.5 billion (increase of 65%).

Social

Projects to the social area grew 31% in disbursements and 35% in
approvals.  The highlight was the health area, which presented
an increase of 132% between August 2006 and July 2007, and 139%
in approvals.  Disbursements to financings to investments in
environmental sanitation increased 81% in the period reviewed,
an expansion similar to the number of operations, of 80%.

Size

BNDES released to micro, small and medium enterprises, including
individuals, BRL13.7 billion within the last 12 months.  The
amounts represented a growth of 29% in the period.

The number of operations to that segment presented a much more
significant growth.  Between August 2006 and July 2007, the
growth was 86% (165.9 thousand), corresponding to 90% of total
operations carried out by BNDES, having reached 184.7 thousand
in the period reviewed.

                    January-July Performance

Within the seven first months of the year, BNDES disbursed
BRL31.2 billion, an amount 38.2% higher than the same period of
2006, BRL22.6 billion.  Approvals amounted to BRL48.8 billion,
an increase of 59.3% versus the seven first months of previous
year, of BRL30.7 billion.

It should be noted a significant growth in volume of operations,
of 93.7%, carried out between January and July 2007 by BNDES,
when compared to the same months of 2006.  In the period, there
were 110.4 thousand operations, versus the 57 thousand
operations in the seven first months of 2006.

Approvals to infrastructure projects amounted to BRL24.6
billion, an increase of 144.9%. Disbursements amounted to
BRL10.7 billion, equivalent to an expansion of 35.8%.

To industry, the Bank approved BRL21.7 billion (increase of 24%)
and disbursed, in the period, BRL15 billion (increase of 33.4%).
The farming sector also presented an expressive growth, both in
the amount of disbursements and approvals.  The amount of
disbursements and approvals was identical, BRL3 billion between
January and July 2007, but the increase in financings approved
was 64%, while disbursements presented an increase of 48.5%.

Eligibilities amounted to BRL62.5 billion between January and
July 2007, 30.4% higher than the BRL48 billion of same period in
previous year.  Consultations, within the first seven months of
the year, amounted to BRL66.6 billion, an amount 36.7% over the
BRL48.9 billion presented between January and July 2006.

                           About BNDES

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

                        *     *     *

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


BANCO NACIONAL: Earns BRL4.4 Million for First Six Months
---------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social's net
income was BRL4.4 billion for the first half of 2007, a result
34% over the BRL3.3 billion for the same period last year.

The main reason for this performance obtained in the first six
months of 2007 was an extraordinary improvement in credit
portfolio for the period, resulting in a gain of BRL1.2 billion,
much higher than the reversal revenue of BRL350 million computed
for the six first months of 2006.

Among the factors that explain such performance is the partial
recovery of credits from the debtor Southern Electric Brasil
(BRL424 million), arising from a judicial decision favorable to
BNDES.  Another factor significant to the result was an
improvement in the method for computing the rating of states and
municipalities, reflecting an expressive advancement in
municipal and state's finances, with a positive impact to the
Bank's loan portfolio.

It is important to highlight that such events, which have
contributed to increase net income, are not likely to repeat
within next years, since the level of default is just 0.3% of
total portfolio, a very low level in relation to the banking
sector's average.  The situation for this half-year was
uncommon, since under normal circumstances the value of
provisions is traditionally negative.  In case of BNDES, for the
period 2002/2006 such provision had been, in average, BRL1.2
billion negative.

The good quality of BNDES's financing portfolio is reflected in
the high ratio of financings considered as low risk.  From the
total, 96.8% of the credits are classified between AA and C risk
levels, against 90.9% for banks in the financial system and
89.5% for government banks, including BNDES itself.

In addition, BNDES system's half year performance received the
contribution of gross income from financial intermediation of
BRL3.1 billion, result from equity interests of BRL2.3 billion
and income tax and social contribution expenses of BRL1.5
billion, already including the effects of tax credits.

Balance of the Provision for Credit Risk (recorded on both
current and default credits as defined under Resolution BACEN
2.682) amounted to BRL3.8 billion, equivalent to 954% of default
credit portfolios, indicating that the amount accrued more than
covers possible losses from default credits.

                       Reduction Of Spreads

BNDES's record net income was obtained in parallel to
initiatives resulting to lower financing costs, like the
reduction in spreads and drop in Long-Term Interest Rate [TJLP]
along the year.  In the beginning of 2007, the Bank approved a
reduction in basic spreads to the segments of energy generation,
transmission and distribution, gas production and distribution,
railways, ports, airports, roads, sanitation and urban
transportation.

Consequently, the basic spreads became in average 60% lower than
in 2005.  This is the second drop of spreads carried out by
BNDES within the last two years -- the first one occurred in the
beginning of 2006 -- aiming at stimulating investments in the
Brazilian economy.  Total cost of BNDES loans is comprised of
TJLP plus basic spread and risk spread.

It is important to note that changes in BNDES's margins have not
yet a significant impact on the result from its financial
intermediation, since its credits are of long-term.  The effect
from such reduction should be noted along next years.

                      Financial Indicators

Stockholders' equity as of the first half of 2007 amounted to
BRL23.6 billion (as of the first half of 2006 it was BRL18.7
billion), corresponding to a reference equity (sum of
stockholders' equity plus subordinated debts) of BRL40.5
billion, the highest in the Bank's history. Expansion in the
equity reference increases BNDES's capacity to finance the
expansion of Brazilian companies, since it increases BNDES's
exposure limits (prudential limits).

Exposure ratio to the public sector closed the half year at
21.9%, lower than the limit of 45% established by the Central
Bank.  Profitability on average Stockholders' Equity reached
20.8% in the period (19.3% in first half of 2006).

BNDES System's Total Assets amounted to BRL190.5 billion as of
June 30, 2007 (BRL181.1 billion as of June 30, 2006), of which
76.5% is represented by the portfolio net of financings and
transfers (74.5% as of June 2006).

                      Operating Performance

BNDES System's disbursements amounted to BRL24.7 billion in the
first half of 2007, a record amount, which represents an
increase of 35.3% in relation to the same period of 2006.  Of
this total, BRL11.6 billion was destined to the industrial
sector, BRL8.5 billion to the infrastructure sector, BRL2.5
billion to farming and BRL2.1 billion to the sector of Trade and
Services.

Disbursements destined to micro, small and medium enterprises
reached BRL7.1 billion, representing an increase of 38.4% in
relation to the same period of 2006.  As to the operating
modality, 31.1% of funds were disbursed directly to the
borrowers, while 68.9% were transferred by means of financial
agents.

                       Income And Expenses

Gross Income from Financial Intermediation (Financial
Intermediation Income less Financial Intermediation Expenses)
was positive by BRL3.1 billion, representing an increase of
68.4% in relation to the first half of 2006.  Administrative
expenses represented 0.17% of total average assets.

                         Variable Income

At the variable income portfolio, it should be noted the
positive gross income from disposal of shares of BRL1.3 billion
and the income from dividends and interests on own capital, of
BRL548 million. Taxes (Income Tax -- 25% and Social Contribution
-- 9%) represented a total expense of BRL1.5 billion, comprised
of current expenses of BRL1.4 billion and expense with
realization of tax credits of BRL143 million.

                           About BNDES

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

                        *     *     *

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


BANCO NACIONAL: Raises Yearly Loan Limit to BRL65 Billion
---------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social SA told
Business News Americas that it has "raised its annual loan limit
to BRL65 billion from BRL60 billion."

According to BNamericas, Banco Nacional would lend up to BRL65
billion in 2007.

BNamericas notes that Banco Nacional issued BRL31.2 billion in
new loans in the first seven months of 2007, about 38.2% higher
compared to the first seven months of 2006.  Financing for
infrastructure projects grew 35.8% year-on-year to BRL10.7
billion in the January to July 2007 period.

The report says that Banco Nacional's loan approvals increase
59.3% to BRL48.8 billion in the first seven months of 2007,
compared to the same period last year.  Its approvals for
funding of infrastructure grew 145% to BRL24.6 billion.

BNamericas relates that requests for funding rose 36.7% to
BRL66.6 billion in the first seven months of 2007, from the same
period in 2006.

Banco Nacional increased lending by 35.0% to BRL60.9 billion in
the 12 months that ended in July 2007, compared to the same
period in 2006.  Loan approvals grew 59.0% to BRL92.5 billion.
Requests rose 43.0% to BRL124 billion, according to BNamericas.

BNamericas reports that lending to the services industry grew
91.0% to BRL4.76 billion in the first seven months of 2007,
compared to the first seven months of 2006.  Industrial
borrowers received BRL31.0 billion in loans in the first seven
months of 2007, about 35.0% higher compared to the same period
in 2006.

According to the report, financing for infrastructure projects
increased 23.0% to BRL19.8 billion in the first seven months of
2007, compared to the same period in 2006.

Banco Nacional told BNamericas that the bank's profits increased
34.0% to BRL4.4 billion in the first half of 2007, compared to
the same period in 2006.

According to the report, Banco Nacional added some BRL1.2
billion to the bottom line from improved asset quality.

Banco Nacional reported a non-performing loan ratio of 0.3% in
the first half of this year, compared to the same period in
2006, BNamericas notes.

Banco Nacional's total assets rose 5.19% to BRL191 billion in
the first six months in 2007, from the first six months of 2006,
BNamericas states.

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

                        *     *     *

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


BANCO PROSPER: Moody's Assigns D- Financial Strength Rating
-----------------------------------------------------------
Moody's investors service has assigned a bank financial strength
rating of D- to Banco Prosper S.A.  Moody's also assigned long-
and short-term foreign- and local-currency deposit ratings of
Ba3 and Not Prime, as well as long- and short term Brazilian
national scale deposit ratings of A3.br and BR-2.  The outlook
on all these ratings is stable.

Moody's D- bank financial strength rating for Banco Prosper
incorporates the bank's modest franchise value and market
position, which reflects in limited recurring earnings and
diversification.  Prosper's primary business focus is the
structuring and sale of asset-backed deals and secured loans to
mid-size companies, a business where it holds an important
market share.

The rating is supported by an agile operating structure and a
flexible business model, both of which could accommodate future
diversification and expansion initiatives.  In that regard,
Prosper has recently made inroads into the payroll lending
business, but it is still a minor operation.

The rating agency also assessed the bank's past and current
earnings volatility, which has been significantly influenced by
gains from trading activities and equity positions.
Improvements in corporate governance would go far in
contributing to future growth and business sustainability.

Moreover, Prosper's tight margins could be pressured by
competitive market conditions and declining domestic interest
rates, both of which could be eased by increasing contribution
from high-yielding payroll loans (although these are still
incipient at the moment).  In that regard, improving
profitability ratios would indicate management's ability to
expand operations within the bank's defined niche markets, even
under competitive pressures.  Prosper's ability to enhance
recurring earning businesses, as means to protect profitability,
would be a positive factor for its ratings, while reducing the
volatile component in earnings.

Conversely, Prosper's ratings might suffer from the effect of
deterioration in financial fundamentals, and primarily its
profitability and asset quality.  Such possible erosions of
value could derive from more aggressive behavior on trading or
from higher risk appetite in facing tougher competition.

Moody's Ba3 global local-currency deposit rating is also based
on Prosper's very modest share of deposits in the Brazilian
market; hence, Moody's assesses no probability of systemic
support for the bank's deposits.  Therefore, the local currency
rating is a direct mapping of Prosper's bank financial strength
rating.  In spite of the high dividend payout recorded over the
last years, controlling shareholders -- i.e., the Peixoto de
Castro family - have shown clear support to the bank whenever
necessary.

  These ratings were assigned to Banco Prosper S.A.:

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

  -- Global Local-Currency Rating: Ba3 long-term local-currency
     deposit rating, and Not Prime short-term local-currency
     deposit rating, with stable outlook.

  -- Foreign Currency Deposit Rating: Ba3 long-term foreign-
     currency deposit rating, and Not Prime, with stable
     outlook.

  -- Brazilian National Scale Deposit Ratings: A3.br long-term
     deposit rating, and BR-2 short-term deposit rating; with
     stable outlook.

Established in 1983, Banco Prosper is headquartered in Rio de
Janeiro, Brazil.  As of March 2007, the bank had total assets of
approximately BRL508 million (US$246.6 million) and equity of
BRL98 million (US$46.2 million).


BRASIL TELECOM: Value-Added Services Comprising 10% of Revenues
---------------------------------------------------------------
Brasil Telecom's manager for value-added services Rafael
Magdalena told Business News Americas that the firm's mobile
unit BrT GSM expects 10% of next year's revenues to come from
value-added services, compared to up to 7% this year.

BNamericas relates that BrT GSM generated revenues of BRL512
million in the second quarter 2007, compared to BRL289 million
in the same quarter last year.  It expects data services to be
"vital to securing future revenues."

Mr. Magdalena told BNamericas that "BrT GSM expects to generate
increased sales from services" like:

          -- SMS,
          -- MMS,
          -- WAP,
          -- ringtones, and
          -- interactive services like quizzes.

According to BNamericas, BrT GSM generates the greater part of
its revenues from value-added services in SMS and WAP.  This may
change next year due to more advanced handsets coming onto the
market.

Mr. Magdalena commented to BNamericas that BrT GSM's "mid-range
handsets" cost BRL400.  "Mid-range handsets should cost" up to
BRL300 next year, letting more clients use inbuilt MP3s, cameras
and WAP functions on their phones.

The report says that BrT GSM reduced its prices for multimedia
messages by 50% to BRL0.25 this month.

Mr. Magdalena explained to BNamericas that with the two-month
promotion, BrT GSM hopes to increase the number of MMS messages
to two million per day by the end of September, from less than
one million messages daily this month.  BrT GSM hopes to let its
clients get to know the MMS product.

BNamericas notes that BrT GSM began promotions for MMS earlier
this month to increase usage by Christmas and the New Year, when
many subscribers will have new phones and the potential volume
of messages is high.

BrT GSM will launch a new ring-back tone in 2007.  It will let
the receiver to hear the sender's personalized ringtone,
BNamericas states, citing Mr. Magdalena.

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.


BRASKEM: Won't Keep Shares in Petroflex
---------------------------------------
Braskem won't keep its shares in Brazilian synthetic rubber
producer Petroflex, Business News Americas reports, citing
brokerage Socopa analyst Tiago Maroni.

Mr. Maroni told BNamericas that Petroflex's co-controllers will
sell the firm to an interested foreign tire maker

"Neither Braskem nor Unipar will keep their shares in Petroflex.
They want to sell them and there's already an interested party,
but this company is afraid of risky investments, so this is a
deal that could take about a year to be concluded," Mr. Maroni
commented to BNamericas.

According to BNamericas, Mr. Maroni said that Braskem and Unipar
aren't interested in the synthetic rubber market.  They
concentrate on production of thermoplastic resins.

Mr. Maroni told BNamericas, "This is ideal for Unipar."

Unipar would get BRL200 million from "selling its own shares in
Petroflex at the same time, providing it with money to help fund
the consolidation of the petrochemical" sector in southeast
Brazil, BNamericas says, citing Mr. Maroni.

"Petroflex is a healthy company that generates good revenues.
The possible buyer, which is probably from the US, is afraid of
making investments in a risky country such as Brazil," Mr.
Maroni told BNamericas.

BNamericas notes that "Braskem is exercising its preemptive
right to acquire shares held in Petroflex by petrochemical firm
Suzano Petroquimica after the latter was sold to federal energy
company Petrobras earlier this month for US$2.1 billion."

The report says that Braskem will have to pay out BRL60 million
for the additional shareholding.

Braskem and Unipar control Petroflex.  Under a shareholders
agreement, Braskem will pay BRL12.67 for each Petroflex share
held by SZPQ, increasing its stake in the firm to 33.53% from
20.12% of the total capital, BNamericas states.

Braskem (BOVESPA: BRKM5; NYSE: BAK; LATIBEX: XBRK) --
http://www.braskem.com.br/-- is a thermoplastic resins producer
in Latin American, and is among the three largest Brazilian-
owned private industrial companies.  The company operates 13
manufacturing plants located throughout Brazil, and has an
annual production capacity of 5.8 million tons of resins and
other petrochemical products.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
March 26, 2007, Fitch Ratings has affirmed its BB+ ratings on
Braskem S.A. and Braskem International following the
announcement by Braskem, Petrobras and the Ultra Group that they
have reached an agreement to acquire the Ipiranga Group's
petrochemical, refining and fuel distribution assets.

Fitch also affirmed these ratings:

  Braskem S.A.

    -- Foreign currency issuer default rating at 'BB+';
    -- Local currency issuer default rating at 'BB+';;
    -- Senior unsecured notes 2008, 2014 at 'BB+';
    -- Senior unsecured Perpetual Bonds at 'BB+';
    -- Senior unsecured notes 2017 at 'BB+';
    -- National rating at 'AA (bra)';
    -- Debentures 12th Issuance at 'AA (bra)'; and
    -- Debentures 13th Issuance at 'AA (bra)'.

  Braskem International

    -- Senior unsecured notes 2015 at 'BB+'.


BUCKEYE TECH: Redeems US$383 Million of Senior Secured Notes
------------------------------------------------------------
Buckeye Technologies Inc. has called for redemption prior to
their maturity US$60 million in aggregate principal amount of
its outstanding 9-1/4% Senior Subordinated Notes due 2008 and
will redeem on Sept. 17, 2007, in accordance with their terms.
Upon completion of this redemption, none of the 2008 Notes will
remain outstanding.  A formal notice of redemption has been sent
separately to the affected holders of the 2008 Notes, in
accordance with the terms of the indenture for the 2008 Notes.
Buckeye plans to finance this redemption using its new revolving
credit facility.

                   About Buckeye Technologies

Headquartered in Memphis, Tennessee, Buckeye Technologies Inc.
(NYSE:BKI) -- http://www.bkitech.com/-- manufactures and
markets specialty fibers and nonwoven materials.  The company
currently operates facilities in the United States, Germany,
Canada, and Brazil.  Its products are sold worldwide to makers
of consumer and industrial goods.

                        *     *     *

As reported in the Troubled Company Reporter on June 19, 2007,
Moody's upgraded Buckeye Technologies, Inc.'s corporate family
rating to B1 from B2 and maintained a stable outlook.  All other
ratings were upgraded by one notch while the unsecured notes
were affirmed at B2.


COMPANHIA PARANAENSE: Wants Bovespa Level 1 Trading Status
----------------------------------------------------------
Companhia Paranaense de Energia Chief Financial Officer Paulo
Roberto Trompczynski said in a conference call that the firm is
working to reach level 1 trading status on the Sao Paulo stock
exchange Bovespa.

Business News Americas relates that level 1 is known for its
higher corporate governance standards.  It establishes a set of
guidelines for firms in the Brazilian capital market.

Mr. Trompczynski commented to BNamericas, "We have been facing
some corporate governance obstacles because we are controlled by
the Parana state government.  However, some changes have already
been implemented so we can reach level 1.  Further changes to
achieve an even more ambitious corporate governance standard
could hurt our by-laws."

Companhia Paranaense Chief Executive Officer Rubens Ghilardi
admitted in a conference call that raising money for projects
has been difficult for the company.

Mr. Ghilardi told BNamericas, "Parana state law says Copel
[Companhia Paranaense] must be the controlling shareholder in
its projects and this causes us further difficulties in raising
money from [Brazil's federal development bank] BNDES for new
projects."

Companhia Paranaense wants to raise funds for the construction
of small-scale hydro plants in Parana, BNamericas states.

Headquartered in Parana, Brazil, COPEL aka Companhia Paranaense
de Energia SA -- http://www.copel.com/-- transmits and
distributes electricity to more than 3 million customers in the
state of Parana and has a generating capacity of nearly 4,600
MW, primarily from hydroelectric plants.  COPEL also offers
telecommunications, natural gas, engineering, and water and
sanitation services.  The company restructured its utility
operations in 2001 into separate generation, transmission, and
distribution subsidiaries to prepare for full privatization,
which has been indefinitely postponed.  In response, COPEL is
re-evaluating its corporate structure.  The government of Parana
controls about 59% of COPEL.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Dec. 13, 2006, Moody's America Latina upgraded the corporate
family rating of Companhia Paranaense de Energia aka Copel to
Ba2 from Ba3 on its global scale and to Aa2.br from A3.br on its
Brazilian national scale.  The rating outlook was stable.  This
rating action concludes the review process initiated on
July 26, 2006.

Moody's upgraded these ratings:

   -- Corporate Family Rating: to Ba2 from Ba3 (Global Local
      Currency) and to Aa2.br from A3.br (Brazilian National
      Scale);

   -- BRL500 million Senior Unsecured Guaranteed Debentures due
      2007: to Ba2 from Ba3 (Global Local Currency) and to
      Aa2.br from A3.br (Brazilian National Scale); and

   -- BRL400 million Senior Secured Guaranteed Debentures due
      2009: to Ba1 from Ba2 (Global Local Currency) and to
      Aa1.br from A1.br (Brazilian National Scale).


DELPHI CORP: Inks MOU with Steelworkers & General Motors
--------------------------------------------------------
Delphi Corp. has signed a Memorandum of Understanding with the
United Steelworkers (and its local 87L) and General Motors Corp.
representing certain U.S. hourly employees at the Delphi's
Dayton (Home Avenue) and Vandalia, Ohio operations.  The
tentative agreements advance Delphi's transformation initiatives
and are subject to union ratification and approval by the U.S.
Bankruptcy Court.

If the contract is ratified by the union membership, it will
expire on Sept. 14, 2011.

USW Local 87 President Dennis Bingham said that details of the
agreement are being withheld pending contract explanation
meetings with the membership.  Following the meetings, the
tentative agreement will be subject to ratification by the
membership.

"Although this series of negotiations has been lengthy and
complex, we are pleased to have now attained consensual labor
agreements with all of our U.S. unions and General Motors on
issues impacting our operations and transformation initiatives,"
John Sheehan, chief restructuring officer, said.  "We remain
committed to working with our labor unions, GM and all of our
other Chapter 11 stakeholders to successfully emerge later this
year."

Delphi will not comment on the details of the tentative
agreement, pending ratification by the respective unions.

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

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


GENERAL MOTORS: Inks MOU with Steelworkers & Delphi Corp.
---------------------------------------------------------
General Motors Corp. has signed a Memorandum of Understanding
with the United Steelworkers and Delphi Corp. representing
certain U.S. hourly employees at the company's Dayton (Home
Avenue) and Vandalia, Ohio operations.  The tentative agreements
advance Delphi's transformation initiatives and are subject to
union ratification and approval by the U.S. Bankruptcy Court.

If the contract is ratified by the union membership, it will
expire on Sept. 14, 2011.

USW Local 87 President Dennis Bingham said that details of the
agreement are being withheld pending contract explanation
meetings with the membership.  Following the meetings, the
tentative agreement will be subject to ratification by the
membership.

"Although this series of negotiations has been lengthy and
complex, we are pleased to have now attained consensual labor
agreements with all of our U.S. unions and General Motors on
issues impacting our operations and transformation initiatives,"
John Sheehan, chief restructuring officer, said.  "We remain
committed to working with our labor unions, GM and all of our
other Chapter 11 stakeholders to successfully emerge later this
year."

Delphi will not comment on the details of the tentative
agreement, pending ratification by the respective unions.

                        About Delphi Corp.

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

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

                      About General Motors

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

                        *     *     *

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

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


GENERAL MOTORS: Union Warns of Strike If Contract Talks Fail
------------------------------------------------------------
A strike authorization vote was determined by union workers of a
General Motors Corp. factory in Lansing, Michigan, if the United
Auto Workers is unsuccessful in coughing up a new contract
agreement with GM, various sources say.

Papers report that UAW Local 652 president Chris Sherwood said
that 97% of the members voted in favor of a strike.

GM's contracts expire Sept. 14, 2007.

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

                        *     *     *

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

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


PETROLEOS DE VENEZUELA: Starting Work on Plant with Petrobras
-------------------------------------------------------------
Petroleos de Venezuela S.A. and Petroleo Brasileiro will begin
construction next month of a US$4.5 billion oil refinery in
Pernambuco, Brazil, Eduard Gismatullin at Bloomberg News
reports.

Petroleo Brasileiro Chief Executive Officer Jose Sergio
Gabrielli told Bloomberg that construction of the US$2.5 billion
refinery will be completed in 2011.  Once operational, the plant
is expected to process 200 barrels of crude per day.

The refinery will be owned 60% by the Brazilian state oil firm,
while the remaining stake will go to Venezuela's state-
controlled company, the same report adds.

According to Bloomberg, the refinery has helped Petroleo
Brasileiro stop Venezuelan President Hugo Chavez's attempt at
seizing the Brazilian company's 40% stake in Carabobo field in
the Orinoco oil belt in Venezuela.  About 100,000 barrels a day
of crude from carabobo will be processed in the Pernambuco
refinery.

                  About Petroleo Brasileiro

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

               About Petroleos de Venezuela

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

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


* BRAZIL: Pernambuco Refinery Works to Begin Next Month
-------------------------------------------------------
Petroleos de Venezuela S.A. and Petroleo Brasileiro will begin
construction next month of a US$4.5 billion oil refinery in
Pernambuco, Brazil, Eduard Gismatullin at Bloomberg News
reports.

Petroleo Brasileiro Chief Executive Officer Jose Sergio
Gabrielli told Bloomberg that construction of the US$2.5 billion
refinery will be completed in 2011.  Once operational, the plant
is expected to process 200 barrels of crude per day.

The refinery will be owned 60% by the Brazilian state oil firm,
while the remaining stake will go to Venezuela's state-
controlled company, the same report adds.

According to Bloomberg, the refinery has helped Petroleo
Brasileiro stop Venezuelan President Hugo Chavez's attempt at
seizing the Brazilian company's 40% stake in Carabobo field in
the Orinoco oil belt in Venezuela.  About 100,000 barrels a day
of crude from carabobo will be processed in the Pernambuco
refinery.

                  About Petroleos de Venezuela

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

                  About Petroleo Brasileiro

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

                        *     *     *

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

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

                       *     *     *

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




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


ASSET BACK: Proofs of Claim Filing Ends on Aug. 23
--------------------------------------------------
Asset Back Servicing Ltd.'s creditors are given until
Aug. 23, 2007, to prove their claims to Martin Couch and Emile
Small, the company's liquidators, or be excluded from receiving
any distribution or payment.

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

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

The liquidator can be reached at:

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


AZEN OIL: Proofs of Claim Filing Ends Today
-------------------------------------------
Azen Oil Company Ltd.'s creditors are given until Aug. 21, 2007,
to prove their claims to David A.K. Walker and Lawrence Edwards,
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.

Azen Oil's shareholders agreed on June 22, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidator can be reached at:

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


BEAUTY POINT: Final Shareholders Meeting Is on Aug. 23
------------------------------------------------------
Beauty Point Investments Ltd. will hold its final shareholders
meeting on Aug. 23, 2007, at:

          CIBC Financial Centre
          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:

          Buchanan Limited
          P.O. Box 1170
          Grand Cayman KY1-1102
          Cayman Islands


CATLEIA OIL: Proofs of Claim Filing Deadline Is Tomorrow
--------------------------------------------------------
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


CORFE HOLDINGS: Sets Final Shareholders Meeting for Aug. 23
-----------------------------------------------------------
Corfe Holdings Ltd. will hold its final shareholders meeting on
Aug. 23, 2007, at:

          CIBC Financial Centre
          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:

          Buchanan Limited
          P.O. Box 1170
          Grand Cayman KY1-1102
          Cayman Islands


CREAFIN FUND: Proofs of Claim Filing Is Until Aug. 25
-----------------------------------------------------
Creafin Fund Management (Cayman) Ltd.'s creditors are given
until Aug. 25, 2007, to prove their claims to RTB Secretaries
Limited, 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.

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

The liquidator can be reached at:

       RTB Secretaries Limited
       c/o Rothschild Trust Cayman Limited
       P.O. Box 10129
       5th Floor, Citrus Grove
       George Town, Grand Cayman KY1-1002
       Cayman Islands
       Tel: (345) 946 7033
       Fax: (345) 946 7043


CYGNUS ASSET: Proofs of Claim Filing Ends on Aug. 28
----------------------------------------------------
Cygnus Asset Management Ltd.'s creditors are given until
Aug. 28, 2007, to prove their claims to Ronald Tompkins, 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.

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

The liquidator can be reached at:

       Ogier
       Attention: Angus Davison
       c/o Ogier
       P.O. Box 1234
       Grand Cayman KY1-1108
       Cayman Islands
       Tel: (345) 949 9876
       Fax: (345) 949 1986


EACM SELECT: Proofs of Claim Filing Deadline Is Aug. 28
-------------------------------------------------------
EACM Select Alternative Fund 1 Ltd.'s creditors are given until
Aug. 28, 2007, to prove their claims to David A.K. Walker and
Lawrence Edwards, 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.

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

The liquidator 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 Is Until 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


IVY PARTNERS: Proofs of Claim Filing Deadline Is Aug. 23
--------------------------------------------------------
Ivy Partners Fund CI I Ltd.'s creditors are given until
Aug. 23, 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 Partners shareholders agreed on July 19, 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


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

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

These agendas will be taken during the meeting:

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

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

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

The liquidator can be reached at:

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


PLAZA GLOBAL: Proofs of Claim Filing Is Until Aug. 23
-----------------------------------------------------
Plaza Global Alpha Selection SPC Ltd.'s creditors are given
until Aug. 23, 2007, to prove their claims to Linburgh Martin
and Jeff Arkley, 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.

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

The liquidator can be reached at:

        Jeff Arkley
        Attention: Neil Gray
        Close Brothers (Cayman) Limited
        Fourth Floor, Harbour Place
        P.O. Box 1034
        George Town, Grand Cayman
        Cayman Islands
        Tel: (345) 949 8455
        Fax: (345) 949 8499


Q INVESTMENT: Proofs of Claim Filing Deadline Is Aug. 23
--------------------------------------------------------
Q Investment Ltd.'s creditors are given until Aug. 23, 2007, to
prove their claims to Phillip Hinds and Richard Gordon, the
company's liquidators, or be excluded from receiving any
distribution or payment.

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

Q Investment's shareholders agreed on July 12, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

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


SHINSEI FUNDING: Proofs of Claim Filing Ends on Aug. 23
-------------------------------------------------------
Shinsei Funding Two TMK Holding's creditors are given until
Aug. 23, 2007, to prove their claims to Martin Couch and Joshua
Grant, the company's liquidators, or be excluded from receiving
any distribution or payment.

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

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

The liquidators can be reached at:

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


STONE CREEK: Proofs of Claim Filing Deadline Is Aug. 23
-------------------------------------------------------
Stone Creek Ltd.'s creditors are given until Aug. 23, 2007, to
prove their claims to Buchanan Limited, the company's
liquidator, or be excluded from receiving any distribution or
payment.

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

Stone Creek's shareholders agreed on July 12, 2007, to place the
company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

        Buchanan Limited
        Attention: Francine Jennings
        P.O. Box 1170
        Grand Cayman KY1-1102
        Cayman Islands
        Tel: (345) 949-0355
        Fax: (345) 949-0360


TAIB FUNDS: Proofs of Claim Filing Deadline Is Tomorrow
-------------------------------------------------------
Taib Funds Ltd.'s creditors are given until Aug. 22, 2007, to
prove their claims to Reid Services Limited, the company's
liquidator, or be excluded from receiving any distribution or
payment.

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

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

The liquidator can be reached at:

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


UFJ CAPITAL: Proofs of Claim Must be Filed by Aug. 23
-----------------------------------------------------
UFJ Capital Finance 1 Ltd.'s creditors are given until
Aug. 23, 2007, to prove their claims to Martin Couch and Richard
Gordon, the company's liquidators, or be excluded from receiving
any distribution or payment.

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

UFJ Capital's shareholders agreed on July 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:

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


URANUS LIMITED: Proofs of Claim Must be Filed by Aug. 23
--------------------------------------------------------
Uranus Ltd.'s creditors are given until Aug. 23, 2007, to prove
their claims to Buchanan Limited, the company's liquidator, or
be excluded from receiving any distribution or payment.

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

Uranus Ltd.'s shareholders agreed on July 12, 2007, to place the
company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

        Buchanan Limited
        Attention: Francine Jennings
        P.O. Box 1170
        Grand Cayman KY1-1102
        Cayman Islands
        Tel: (345) 949-0355
        Fax: (345) 949-0360




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


BELL MICROPRODUCTS: Obtains Add'l Nasdaq Determination Notice
-------------------------------------------------------------
Bell Microproducts Inc. has received an additional staff
determination notice from the Nasdaq Stock Market, stating
that it is not in compliance with the requirements for continued
listing pursuant to Nasdaq Marketplace Rule 4310(c)(14), due to
its failure to file on a timely basis its Quarterly Report on
Form 10-Q for the quarter ended June 30, 2007.

This staff determination notice serves as an additional basis
for delisting the company's common stock from trading on Nasdaq.
As a result, the company's securities remain subject to
delisting from trading on the Nasdaq Global Market.

Nasdaq initially informed the company in November 2006, that it
was not in compliance with continued listing standards due to
the company's delay in filing its Quarterly Report on Form 10-Q
for the period ended Sept. 30, 2006.

The company's appeal before the Nasdaq Listing and Hearing
Review Council remains pending and any decision of the Nasdaq
Listing Qualifications Panel to delist the company has been
stayed.

On June 29, 2007, and Aug. 13, 2007, the company submitted
additional information to Nasdaq in support of its position.
The staff determination notice includes a request for additional
information due no later than Aug. 21, 2007.  The company
expects to be able to comply with this additional request in a
timely
manner.

                    About Bell Microproducts

Headquartered in San Jose, California, Bell Microproducts Inc.
(Nasdaq: BELM) -- http://www.bellmicro.com/-- is an
international, value-added distributor of high-tech products,
solutions and services, including storage systems, servers,
software, computer components and peripherals, as well as
maintenance and professional services.  Bell is a Fortune 1000
company that has operations in Argentina, Brazil, Chile and
Mexico.

                        *     *     *

For the quarter ended June 30, 2007, the company provided
additional information to NASDAQ to support its request for an
extension of time required to complete its required filings with
the SEC.  During the quarter the company also received waivers
from its lenders through Sept. 30, 2007, relating to the filing
of financial reports with the SEC and the provision of audited
financial reports to the lenders.


BOSTON SCIENTIFIC: Mulls Cardiac & Vascular Surgery Units Sale
--------------------------------------------------------------
Boston Scientific Corporation intends to explore the sale of its
Cardiac Surgery and Vascular Surgery businesses as part of the
company's plan to review its portfolio of assets and divest
those considered non-strategic, and to strengthen its operating
and financial performance.

"As part of an ongoing review of our assets, we have initiated a
process to explore the sale of our Cardiac Surgery and Vascular
Surgery businesses," Paul LaViolette, Chief Operating Officer of
Boston Scientific, said.  "If finalized, this sale will support
our efforts to focus resources on our core businesses and
improve our operating and financial performance.  These are
strong businesses, and we believe the combined portfolio has
great potential for success with the focused attention and
resources of external ownership.  We are in discussions with
several potential buyers, and we expect the process to take a
number of months."

"This is another step in the progress we are making on our plan
to divest non-strategic assets, monetize our investment
portfolio and bring our expenses and head count in line with our
revenues," Mr. LaViolette added.  "We have now identified three
non-strategic businesses to divest, and we are in discussions
with potential buyers for all three.  In recent months we have
retained our Endosurgery group, entered into an agreement to
assume sole management and control of our pain management
business from Advanced Bionics and sell the Advanced Bionics
auditory business, monetized parts of our portfolio, and begun
developing an expense and head count reduction plan, which we
plan to announce next quarter.  In addition, we continue to
focus on the recovery of the drug-eluting stent and cardiac
rhythm management markets.  Together, these measures should
combine to help us achieve our overall goals of restoring
profitable growth, increasing shareholder value, and continuing
to build and strengthen Boston Scientific."

Boston Scientific acquired the Cardiac Surgery business in April
2006 as part of the Guidant transaction.  Headquartered in San
Jose with a manufacturing facility in Dorado, Puerto Rico, the
Cardiac Surgery business is a leading developer of medical
technologies designed to provide less-invasive therapies in
cardiac surgery, including beating heart bypass surgery systems,
endoscopic vessel harvesting for coronary bypass surgery, and
microwave surgical ablation.  The business employs approximately
450 people and had 2006 revenues of US$189 million.

Boston Scientific established its Vascular Surgery business with
the acquisition of Meadox Medicals in 1995.  The Vascular
Surgery business develops market-leading synthetic grafts and
patches for repair of abdominal aortic aneurysms and peripheral
vascular anatomy.  The business had 2006 revenues of $86 million
and has approximately 250 employees, primarily located at its
manufacturing site in Wayne, New Jersey.

                    About Boston Scientific

Headquartered in Natick, Massachusetts, Boston Scientific
Corporation (NYSE: BSX) -- http://www.bostonscientific.com/
-- develops, manufactures and markets medical devices used in a
broad range of interventional medical specialties.  The company
has offices in Argentina, Chile, France, Germany, and Japan,
among others.

                        *     *     *

As reported in the Troubled Company Reporter on Aug. 7, 2007,
Standard & Poor's Ratings Services lowered its corporate credit
rating on Boston Scientific Corp. to 'BB+' from 'BBB-' and
placed the ratings on the company on CreditWatch with negative
implications.  S&P has withdrawn the commercial paper rating at
the company's request.

At the same time, Fitch Ratings downgraded the ratings on Boston
Scientific Corp. including the company's 'BBB-' Senior Unsecured
Notes rating which was lowered to 'BB+'.  Fitch said the rating
outlook is negative.


SHAW GROUP: Unit Gets US$50-Million Deal with Dagu Chemical
-----------------------------------------------------------
The Shaw Group Inc. disclosed that its Energy & Chemicals Group
has been awarded a US$50 million contract to provide technology
and basic engineering for a 500,000 metric tons per annum
ethylbenzene/styrene monomer plant in Tianjin, China, for
Tianjin Dagu Chemical Industry Co. Ltd.

The plant will be located in Tianjin Industrial Park, Lingang
Industry Area, near the city of Tianjin.  Shaw will also provide
procurement services for critical equipment in addition to
training and technical advisory services during plant
construction and start-up.

The new plant will utilize proprietary EBMax(SM) and styrene
technologies provided by Badger Licensing, LLC, a joint venture
of affiliates of The Shaw Group Inc. and ExxonMobil Chemical
Company.

"We are pleased that we were selected for this project, which is
the largest ethylbenzene/styrene monomer project undertaken by
Shaw in China," said J.M. Bernhard Jr., chairman, president and
chief executive officer of Shaw. "China's chemical industry is
growing rapidly, and we look forward to successfully
demonstrating Shaw's ability to offer world class proprietary
technologies and services to our customers."

Based in Baton Rouge, Louisiana, The Shaw Group Inc. (NYSE: SGR)
-- http://www.shawgrp.com/-- provides services to the
environmental, infrastructure and homeland security markets,
including consulting, engineering, construction, remediation and
facilities management services to governmental and commercial
customers.  It is also a vertically integrated provider of
engineering, procurement, pipe fabrication, construction and
maintenance services to the power and process industries.  The
company segregates its business activities into four operating
segments: Environmental & Infrastructure; Energy & Chemicals;
Maintenance, and Fabrication, Manufacturing & Distribution.  In
January 2005, the company sold substantially all of the assets
of its Shaw Power Technologies, Inc. and Shaw Power Technologies
International, Ltd. units to Siemens Power Transmission and
Distribution Inc., a unit of Siemens AG.

The company has operations in Chile, China, Malaysia, the United
Kingdom and, Venezuela, among others.

                        *     *     *

Standard & Poor's Ratings Services affirmed its 'BB' corporate
credit rating on The Shaw Group Inc. and removed it from
CreditWatch, where it was placed with negative implications in
October 2006.  S&P said the outlook is stable.

In addition, 'BB' senior secured debt rating was affirmed after
the US$100 million increase to the company's revolving credit
facility.




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


ECOPETROL: Sets COP1,400 Per Share Price in IPO
-----------------------------------------------
Colombian state-owned oil company Ecopetrol said in a statement
that its shares will sell for COP1,400 in the initial public
offering set for Aug. 27.

Business News Americas relates that about four billion shares
will be issued.  The offering will be broken down into three
rounds, with the first two rounds are for current and retired
Ecopetrol employees, pension funds, unions and cooperatives.
Colombian and foreign corporate entities can participate in the
third issue of shares in 2008.

According to Ecopetrol's statement, interested parties must buy
a minimum of 1,000 shares, while Colombian citizens can purchase
shares interest-free by paying an initial installment of 15% of
the total purchase.

BNamericas notes that Colombian citizens "will enjoy a 5%
rebate."  They can buy shares for COP1,300.

The report says that an individual won't be allowed to buy over
50,000 shares.

BNamericas states that interested parties can purchase shares at
over 2,000 locations throughout Colombia, including:

          -- banks,
          -- supermarkets, and
          -- stock brokerages.

Ecopetrol said in a statement that Colombia's general assembly
valued Ecopetrol at US$25.5 billion.

Ecopetrol would use some of the revenues from the sale to fund
its US$12.5-billion investment plan.  It could use the funds for
the construction of a Central American plant, BNamericas
reports, citing the company's president, Javier Genaro
Gutierrez.

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

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 27, 2007, Fitch Ratings upgraded the foreign currency
Issuer Default Ratings of Ecopetrol to 'BB+' from 'BB'.  The
rating action followed the upgrade of The Republic of Colombia's
foreign currency Issuer Default Ratings to 'BB+' from 'BB'.


PARKER DRILLING: Gets Official Letter from Ministry of Finance
--------------------------------------------------------------
Parker Drilling Company has received an official letter from the
Tax Committee of the Ministry of Finance of the Republic of
Kazakhstan confirming that the Ministry of Finance has directed
the Atyrau Tax Committee to stay enforcement of the notice of
income tax assessment against the Kazakhstan branch of a Parker
subsidiary.  The letter indicates that the stay was issued in
response to the appeal filed by the branch on the basis that
collection of the assessment would result in double taxation to
Parker Drilling.

Mr. Robert L. Parker Jr., chairman and chief executive officer
stated: "We are encouraged that the Republic of Kazakhstan's
Ministry of Finance and the U.S. Government's Department of the
Treasury are in contact at the highest level and have committed
to resolving an important tax treaty matter that affects foreign
direct investment between Kazakhstani and American business
partners.  We look forward to continuing our long-term
commitment to working in Kazakhstan's energy sector."

Headquartered in Houston, Texas, Parker Drilling Company --
http://www.parkerdrilling.com/-- provides contract drilling and
drilling-related services worldwide.  The company has rigs
located in Indonesia, New Zealand, Colombia and Mexico, among
others.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
July 3, 2007, Standard & Poor's Ratings Services assigned its
'B-' rating to contract drilling and rental tool provider Parker
Drilling Co.'s (Parker) proposed US$115 million convertible
senior notes due 2012.  S&P also affirmed the 'B' corporate
credit rating on Parker and the 'B-' rating on its US$150
million senior floating rate notes due 2010 and US$225
million senior notes due 2013.  S&P said the outlook is
positive.




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


PRC LLC: S&P Lowers Rating on US$160-Million Credit to BB-
----------------------------------------------------------
Standard & Poor's ratings services has lowered its corporate
credit rating on PRC LLC to 'B' from 'B+'.  The outlook is
negative.

At the same time, S&P's has lowered the rating on PRC's US$160
million first-lien credit facilities to 'BB-' (two notches above
the corporate credit rating) from 'BB'.  The recovery rating
remains unchanged at '1', indicating our expectation of full
(90%-100%) recovery in the event of a payment default.  S&P's
also lowered the rating on the US$67 million second-lien term
loan to 'CCC+' (two notches below the corporate credit rating)
from 'B-'.  The recovery rating remains unchanged at '6',
indicating our expectation of negligible (0%-10%) recovery in
the event of a payment default.

The downgrade of PRC, a business process outsourcer, was based
on weak operating performance and a narrowing cushion of
compliance with bank covenants.

"A slower-than-expected ramp-up in call center activity for a
major new client caused most of the company's disappointing
operating performance," said S&P's credit analyst Andy Liu.
"PRC had incurred most of the infrastructure and training costs
associated with the contract but wasn't able to staff enough
call center operators to generate revenue sufficient to offset
the costs."

Poor execution of this new contract contributed to the
resignation of PRC's CEO and CFO.  An interim management is now
in place.

As a result of earnings underperformance, the company's cushion
of compliance with bank covenants has narrowed.  However, PRC's
private-equity owner, Diamond Castle Holdings LLC, could infuse
additional equity if needed to ensure that PRC remains in
compliance with bank covenants.

The ratings reflect PRC's significant revenue concentration
among its top customers, S&P's concerns regarding its operating
execution, the competitive BPO market in which the company
operates, the presence of several larger and better capitalized
competitors, and high debt leverage.  These factors are only
partially offset by good BPO industry growth prospects.

Plantation, Florida-based PRC is a business process outsourcing
or BPO provider with operations in the U.S., the Philippines,
India, the Dominican Republic, and Ireland.  The company
provides dedicated-agent communication services focusing on
business-to-consumer and business-to-business transactions.




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


PETROECUADOR: Inks Oglan Confidentiality Pact with Enarsa
---------------------------------------------------------
Ecuadorian state-run oil firm Petroecuador has signed a
confidentiality agreement with Argentine counterpart Enarsa for
the analysis and study of the Oglan field in Ecuador, Business
News Americas reports.

Enarsa said in a statement that the agreement is effective for
120 days.  Petroecuador will let Enarsa executives access
technical information on the field in Orellana.

BNamericas relates that information includes:

          -- geological data,
          -- geophysical data,
          -- maps,
          -- models, and
          -- exploration and production interpretations.

Enarsa could use the information to submit a development
proposal for Oglan to Petroecuador unit Petroproduccion,
BNamericas states.

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


PETROECUADOR: Will Take Charge of Panacocha Field
-------------------------------------------------
Ecuadorian state-run oil firm Petroecuador's "political board"
has decided that the company be in charge of the Panacocha
field's production and development through its block 15 unit,
Business News Americas reports.

BNamericas says that the Ecuadorian government was considering
the award of Panacocha development to another firm in a bidding
process.

According to Petroecuador's statement, block 15's unit is near
the field along with available infrastructure.

BNamericas relates that Panacocha's development will need a
US$150-million investment.  Petroecuador has US$20 million for
the initial phase.  The block has proved reserves of 64.9
million barrels and probable reserves of over 27 million
barrels.

The report says that production of 24 API grade crude would
start in 2009 at almost 5,000 barrels per day.  The "peak
output" of 22,000 barrels per day "is expected in its third year
of development and second year of production."

The block's output in its 18-year production period could total
68.3 million barrels, BNamericas states.

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




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


* EL SALVADOR: Obtains US$1-Mil. Financing for Support Program
--------------------------------------------------------------
The Inter-American Development Bank's Multilateral Investment
Fund has approved a US$1 million loan to El Salvador for a
government procurement support program for micro, small and
medium-sized enterprises.

The program will develop and implement a series of services,
emphasizing the use of information and communications technology
to boost MSME's participation in government procurement.

"Public procurement represents between 10 and 15 percent of the
domestic gross product in countries in the region," said MIF
team leader Antonio Ca' Zorzi.  "The impact of greater
competitive participation of small and medium-sized enterprises
would be significant."

"The government of El Salvador is reforming the country's
procurement system to ensure free competition, transparency and
equity, to streamline processes and make public spending more
effective at all public entities at the central and local
government level," added Mr. Ca' Zorzi.

"The program also contributes towards the further development of
CompraSal a national e-government procurement system, which is
being implemented to modernize procurement systems and
facilitate the effective participation of enterprises."

The Ministry of Economy will carry out the program through the
National Commission for Microenterprises and Small Businesses,
in partnership with the Ministry of Finance and the Chamber of
Commerce of El Salvador.  Local counterpart funds will total
US$420,000.

MIF, an autonomous fund administered by the IDB, supports
private sector development in Latin America and the Caribbean,
focusing on microenterprise and small business.

                        *     *     *

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




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


PAYLESS SHOESOURCE: Changes Company Name to Collective Brands
-------------------------------------------------------------
Payless ShoeSource Inc. has completed the acquisition of
The Stride Rite Corporation and has officially changed its name
to Collective Brands, Inc.

"Collective Brands is built on the solid foundation of each
business unit's individual core competencies, expertise and
heritage," said Matthew E. Rubel, chief executive officer and
president of Collective Brands, Inc.  "The new company will
reach an expanded customer base with iconic brands through its
nearly 4,900-strong retail stores and vibrant wholesale,
licensing, and e- commerce channels. It will benefit from new
efficiencies and greater scale in all aspects of getting
footwear and accessories to market."

Collective Brands is a global footwear, accessory and lifestyle
brand company with leading, well-recognized brands, superior
quality and on-trend footwear, and accessory products offered
through multiple channels.  As one of the largest footwear
companies in the western hemisphere, Collective Brands is
organized with three highly complementary and separate business
units with distinct missions in terms of their product
offerings, distribution channels, brand portfolios, and target
customer bases:

   -- Payless ShoeSource: democratizing fashion and design in
      footwear and accessories through its nearly 4,600 retail
      store chain.  Brands sold at Payless include Airwalk(R),
      American Eagle(TM), Champion(R), Dexter(R), Tailwind(R)
      (through the Exeter Brands Group of Nike Inc.), Disney(R),
      Shaquille O'Neal-endorsed Dunkman(TM), ABT for Spotlights,
      and designer collections: Abaete for Payless, Lela Rose
      for Payless and alice + olivia for Payless.

   -- Stride Rite: centering on premium lifestyle and athletic
      branded footwear and high-quality children's footwear sold
      primarily through wholesaling arrangements and more than
      300 retail store locations.  Brands owned or licensed by
      Stride Rite include Stride Rite(R), Keds(R), Sperry Top-
      Sider(R), Tommy Hilfiger(R) footwear, Saucony(R), Hind(R),
      and Robeez(R), among others.

   -- Collective Licensing International: specializing in brand
      management and global licensing of its portfolio of youth,
      lifestyle and high-quality fashion athletic brands.
      Brands for Collective Licensing include: Airwalk(R),
      Vision Street Wear(R), Lamar(R), Sims(R), LTD(R),
      genetic(TM), Dukes(R), Rage(R), Ultra-Wheels(R), and Skate
      Attack(R).

While each unit will operate separately, the company will
leverage core competencies across the organization in areas such
as product design and development, global sourcing,
distribution, inventory management, and various corporate
functions.

Collective Brands' competitive advantages include:

   -- A diverse operating model with the ability to target
      specific customer segments with branded products offered
      at a range of price points through multiple channels.

   -- The preeminent position in children's footwear both at the
      premium and moderate level.

   -- A stronger, more efficient organization with the scope and
      scale to manage all aspects of getting to market - from
      interpretations of emerging trends, to design,
      development, sourcing, logistics and distribution.

The acquisition of Stride Rite was approved by its shareholders
at a special meeting held on Aug. 16, 2007, with 80.7% of its
shareholders voting in favor of the transaction.  The
transaction, valued at approximately US$900 million, consisted
of an aggregate US$800 million payment to Stride Rite
shareholders, option holders and other equity holders, as well
as the repayment of existing debt and other transaction costs.
It was financed with approximately US$175 million in cash-on-
hand and a US$725 million term loan B at a variable rate of
currently 8.3% over 7 years.

David Chamberlain, chief executive officer for The Stride Rite
Corporation, has retired from day-to-day operations of the
company and will serve as an outside consultant to Matt Rubel.
Richard Thornton will continue to serve as president and chief
operating officer of the Stride Rite unit.  Matt Rubel will
continue to head the Payless ShoeSource unit, and Bruce Pettet
will continue to lead the Collective Licensing unit.

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

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
July 31, 2007, Standard & Poor's Ratings Services lowered its
rating on Payless ShoeSource Inc. to 'B+' from 'BB-'.  At the
same time, the rating on the Topeka, Kan.-based company's US$200
million senior subordinated notes was lowered to 'B-' from 'B'.
All ratings have been removed from CreditWatch, where they were
placed with negative implications on May 23, 2007.  The outlook
is stable.

S&P also assigned its bank loan and recovery ratings to Payless'
proposed US$750 million senior secured term loan maturing 2014.
The facility is rated 'BB-', one notch higher than the corporate
credit rating on the company, with a recovery rating of '2',
reflecting the expectation of substantial recovery (70%-90%) of
principal in the event of default.  Proceeds from the term loan
will be used to fund the acquisition of The Stride Rite Corp.
The company will also have a US$350 million asset-based revolver
maturing in 2012, which is unrated.




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


DYOLL GROUP: Board Mulling Firm's Wind Up
-----------------------------------------
The Dyoll Group's board is considering winding up the company,
the Jamaica Observer reports.

According to The Observer, the board had said two years ago that
it would try to change the firm into a commercial real estate
development and management enterprise to stay afloat.

The Observer relates that the Dyoll Group informed the Jamaica
Stock Exchange it would hold an extraordinary general meeting by
Sept. 21, 2007, to decide:

          -- the company's future,
          -- whether it should be wound up, and
          -- the appointment of a liquidator.

The report says that Dyoll Group lost the bulk of its assets
when its general insurance firm, Dyoll Insurance, "collapsed
under the strain of excessive claims stemming from devastation"
caused by Hurricane Ivan in Jamaica and the Cayman Islands.

The Observer notes that Dyoll Insurance had hundreds of millions
of dollars in asset deficiency.  It had to be liquidated,
leaving Dyoll Group, which is still listed on the Jamaica Stock
Exchange, with US$174 million of assets.

Former Dyoll Group acting chairperson Peter Lawson told The
Observer that the plan to turn itself into a property firm to
revive its business "was predicated on the firm realizing the
value of its assets by collecting outstanding debts and selling
off its Coffee subsidiary."

The Observer relates that Dyoll Group sold its coffee producing
unit Dyoll/Wataru for US$25 million in 2006.  Dyoll/Wataru
entered into an accord with Drax Hall Limited in May 2007 to buy
back "the judgment debt awarded to Dyoll Group by the Supreme
Court against it."  Dyoll Group "agreed to accept US$2.5 million
on which it received a non-refundable deposit of US$350,000 in
July, which should cover the entity's expenses for at least a
year."

At that time the move to real estate would have been a feasible
alternative for Dyoll Group, The Observer says, citing Dr.
Damien King, who was a director then at the firm and now acts as
its chairperson.  He told shareholders two years ago that "the
steady income stream, plus the prospect of creating a niche
business in the high-end rental market made it a winning
proposition."

"The real estate company would grant investors an opportunity to
diversify their portfolio, without having to personally manage
the tiresome process of real estate development," Mr. King told
The Observer.

Dyoll Group Ltd. is a Jamaica-based company that is principally
engaged in the insurance business.  Jamaica's Financial Services
Commission has assumed temporary management of the Jamaica-based
Dyoll Insurance Co. Ltd. in March 7, 2005, in order to establish
the true position of the Company, address the matter of
settlement to its claimants and ensure that its policies will
remain in force after a high level of insurance claims were
leveled on the company as a result of the hurricane Ivan.
Kenneth Tomlinson was appointed temporary manager.  Jamaica's
Supreme Court ordered for the distribution of a US$653 million
fund held by the FSC in accordance with the Insurance Act 2001,
section 59, which says that the prescribed deposit, on the
winding up of an insurance company, should be applied first to
settle the claims of local policyholders.


KAISER ALUMNIUM: Davenport Ups Rating on Shares To Strong Buy
-------------------------------------------------------------
Davenport & Company analysts have upgraded its rating on Kaiser
Aluminum Corporation to "strong buy" from "buy," Newratings.com
reports.

Newratings.com relates that the target price for Kaiser Aluminum
was set at US$93.

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

The analysts told Newratings.com that Kaiser Aluminum "is making
investments" to boost its extrusions business efficiency.  It is
increasing its high-margin aluminum plate capacity to cater to
an expected growth in demand.

The initiatives would "result in substantially improved cash
flows," Newratings.com says, citing Davenport.

The earnings per share estimate for 2007, 2008 and 2009 were
increased to US$4.05 from US$3.20, to US$5.82 from $5.01, and to
US$6.75 from US$6.29, respectively, Newratings.com states.

Headquartered in Foothill Ranch, California, Kaiser Aluminum
Corp. (NASDAQ:KALU) -- http://www.kaiseraluminum.com/-- is a
leading producer of fabricated aluminum products for aerospace
and high-strength, general engineering, automotive, and custom
industrial applications.  Kaiser Aluminum has subsidiaries in
Jamaica.  The company, along with its Jamaican subsidiaries,
filed for chapter 11 protection on Feb. 12, 2002 (Bankr. Del.
Case No. 02-10429), and has sold off a number of its commodity
businesses during course of its cases.  Corinne Ball, Esq., at
Jones Day, represents the Debtors in their restructuring
efforts.  Lazard Freres & Co. serves as the Debtors' financial
advisor.  Lisa G. Beckerman, Esq., H. Rey Stroube, III, Esq.,
and Henry J. Kaim, Esq., at Akin, Gump, Strauss, Hauer & Feld,
LLP, and William P. Bowden, Esq., at Ashby & Geddes represent
the Debtors' Official Committee of Unsecured Creditors.  The
Debtors' Chapter 11 Plan became effective on July 6, 2006, and
the company emerged from Chapter 11.  On June 30, 2004, the
Debtors listed US$1.619 billion in assets and US$3.396 billion
in debts.




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


CORPORACION DURANGO: Extends Tender Offer Period to Aug. 24
-----------------------------------------------------------
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 (CUSIP
No. 21986MAK1) until 5:00 p.m., New York City time, on
Aug. 24, 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. 10, 2007, was
5:00 p.m., New York City time, on Aug. 17, 2007.  As of 5:00
p.m., New York City time, on Aug. 17, 2007, US$370,980,723 in
aggregate principal amount, or approximately 88.4%, 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 (as defined in the Offer to
Purchase).

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.

Any questions or requests for assistance regarding the Offer may
be made to the Dealer Manager and Solicitation Agent, Merrill
Lynch & Co., Attention: Liability Management Group at
(888) 654-8637 or (212) 449-4914.  Questions or requests for
assistance or additional copies of the Offer to Purchase and the
related Letter of Transmittal may be directed to the Information
Agent, Global Bondholder Services Corporation, toll free at
(866) 794-2200 (bankers and brokers call collect at
(212) 430-3774).

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.


CORPORACION INTERAMERICANA: S&P Puts Low B Ratings on Watch Pos.
----------------------------------------------------------------
Standard & Poor's ratings services has said its 'BB-' long-term
corporate credit rating on Corporacion Interamericana de
Entretenimiento S.A.B. de C.V. y Subsidiarias and its 'B+' long-
term corporate credit rating on Corporacion Interamericana de
Entretenimiento, S. A. B. de C. V. (Holding) remain on
CreditWatch with positive implications, where they were placed
May 11, 2007.  The 'B+' senior unsecured debt rating on
Holding's notes due 2015 also remains on CreditWatch with
positive implications.

The initial CreditWatch placement followed Corporacion
Interamericana's announcement that it had reached an agreement
to sell a majority stake in its live entertainment businesses in
South America.  This transaction has been completed and proceeds
were mainly used to pay down debt.  The decision to keep the
ratings on CreditWatch positive reflects the announcement that
the company has entered into a Memorandum of Understanding with
Codere S.A. (BB-/Watch Neg/--).  According to the MOU, Codere
S.A. will agree to acquire a 49% interest in Corporacion
Interamericana Las Americas in exchange for Codere's 50%
interest in the existing gaming joint ventures within Corpocaion
Interamericana Las Americas.  Net proceeds of the US$175 million
operation will be used for debt reduction.  The CreditWatch
listing will be resolved once the Codere transaction is
completed, the conditions of the shareholders agreement signed
between Corporacion Interamericana and Codere and the debt
repayment amount are known, and after S&P's reassess the
company's discretion over its subsidiaries' cash flow
generation.

Corporacion Interamericana Holding is rated 'B+' based on its
pure holding company nature.  It depends on the cash flows--
interest income, fees, and dividends--upstreamed from its
subsidiaries. The removal of debt at the operating company level
would not automatically warrant the equalization of the rating
on Holding's notes with the corporate credit rating on the whole
group. Proceeds of Holding company-level debt are largely
downstreamed to its operating subsidiaries as loans.  Holding's
main source of cash flow is the interest collected from its
subsidiaries, which is a more stable revenue stream than
dividends.  S&P's will review Corporacion Interamericana's cash
flow generation prospects resulting from the announced agreement
before taking any rating action.

"The ratings reflect Corpocacion Interamericana's exposure to
economic cycles and increasing competition from emerging out-of-
home entertainment sources; the need to constantly add more
attractions or events to its backlog; the volatile availability
of international talent; and the ongoing need to renew venues'
concessions and sponsorship contracts.  The ratings are also
based on the favorable competitive position of its operations
due to its vertically integrated structure and operational
scale, and its position as the out-of-home industry leader in
Mexico," said S&P's credit analyst Fabiola Ortiz.

Corporacion Interamericana, based in Mexico City, is the largest
"out of home" entertainment company in Latin America.

Corporacion Interamericana de Entretenamiento is a Mexican
entertainment company involved in the promotion of live events,
including concerts, theatrical productions, amusement parks,
betting on foreign sports and number games, trade fairs and
exhibitions, as well as sporting and other events.  The
company's operations are divided into five strategic areas:
Corporacion Interamericana Entertainment, which promotes musical
concerts, theatrical productions, family shows and other live
events; Corporacion Interamericana Las Americas, which centers
on the operation and development of the Las Americas Complex in
Mexico City, including the Las Americas Hippodrome; Corporacion
Interamericana Amusement Parks, which operates nine parks in
Mexico and two in Columbia and has also opened the Wannado City
Theme Park in Fort Lauderdale, Florida; Corporacion
Interamericana Commercial, which attracts and channels customers
via advertising and public relations, and Corporacion
Interamericana International, which develops live events outside
of Mexico, mainly in Argentina, Brazil, Colombia and the United
States.


LEVI STRAUSS: Moody's Affirms B1 Corporate Family Rating
--------------------------------------------------------
Moody's Investors Service affirmed all ratings for Levi Strauss
& Co.  The rating outlook was revised to positive from stable.

"The change in the rating outlook to positive reflects LS&CO's
continued progress in achieving revenue and margin stability for
the company as a whole and continued improvement in its balance
sheet with about $200m of funded debt repaid in the past 18
months" said Scott Tuhy, Vice President and Senior Analyst.
Upward rating momentum would result from the company
demonstrating continued stability in operating performance and
credit metrics in the face of current uncertainties in consumer
spending, as well as further progress in improving internal
controls and systems.

These ratings were affirmed:

-- Corporate Family Rating and Probability of Default Rating;
    B1

-- Various Senior Unsecured Notes: B2 (LGD 4 -- 62%).

Founded in 1853 by Bavarian immigrant Levi Strauss, Levi Strauss
& Co. -- http://www.levistrauss.com/-- is one of the world's
largest brand-name apparel marketers with sales in more than 110
countries.  The company market-leading apparel products are sold
under the Levi's(R), Dockers(R) and Levi Strauss Signature(R)
brands.

Levi Strauss & Co. is privately held by descendants of the
family of Levi Strauss.  Shares of company stock are not
publicly traded.  Shares of Levi Strauss Japan K.K., the
company's Japanese affiliate, are publicly traded in Japan.

The company employs a staff of approximately 10,000 worldwide,
including approximately 1,010 at the company's San Francisco,
California headquarters.  Levi Strauss Europe is headquartered
in Brussels, Belgium, while Levi's Asia Pacific division is
based in Singapore.  Levi's has operations in Brazil, Mexico,
Chile and Peru.


QUAKER FABRIC: Case Summary & 39 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Quaker Fabric Corporation
        941 Grinnell Street
        Fall River, MA 02721

Bankruptcy Case No.: 07-11146

Debtor-affiliates filing separate Chapter 11 petitions:

      Entity                                    Case No.
      ------                                    --------
      Quaker Fabric Corporation of Fall River   07-11146

Type of Business: The Debtor is one of the largest producers
                  of Jacquard upholstery fabrics.  The company
                  also produces specialty yarns, which it both
                  uses in its fabrics and sells to other
                  fabric manufacturers.
                  See http://www.quakerfabric.com/

Chapter 11 Petition Date: August 16, 2007

Court: District of Delaware (Delaware)

Debtors' Counsel: Joel A. Waite, Esq.
                  Young, Conaway, Stargatt & Taylor
                  The Brandywine Building
                  1000 West Street, 17th Floor
                  P.O. Box 391
                  Wilmington, DE 19899-0391
                  Tel: (302) 571-6600
                  Fax: (302) 571-0453

Debtors' financial condition as of June 2, 2007:

   Total Assets: US$155,243,945

   Total Debts:   US$60,407,158

Debtors' Consolidated List of its 39 Largest Unsecured
Creditors:

   Entity                        Nature of Claim    Claim Amount
   ------                        ---------------    ------------
Unifi Manufacturing, Inc.        Trade              US$3,151,381
c/o Romonica Emerson
7201 West Friendly Avenue
Greensboro, NC 27410
and
P.O. Box 404617
Atlanta, GA 30384-4617
Tel: (336) 294-4410
Fax: (336) 316-5607

Hangzhou Zhongwang Fabric        Trade              US$1,291,997
Shulhong Temple Village
Chongxian Town
Yuaan District, Hangzhou
China
Tel: (0571) 86172333
Fax: 86-571-627-6788
c/o Robert A. Migliaccio, Esq.
Cameron & Mittleman, LLP
56 Exchange Terrace
Providence, RI 02903
Tel: (401) 331-5700 ext. 323
Fax: (401) 454-4526

Sempra Energy Solutions          Utility              US$537,032
P.O. Box 92170
Elk Grove Village, IL 60009
Tel: (401) 463-3550
Fax: (401) 463-6071

Carolina Yarn Processors         Trade                US$453,739
P.O. Box 1579
Tryon, NC 28782
Tel: (828) 859-5891
Fax: (828) 859-9024

PriceawaterhouseCoopers LLP      Services             US$444,610
125 High Street
Boston, MA 02110
Tel: (617) 530-4473
Fax: (813) 637-3720

American Fibers and Yarns        Trade                US$350,124
P.O. Box 536726
Atlanta, GA 30353-6726
Tel: (866) 572-7342
Fax: (919) 969-4299

Regifil Inc.                     Trade                US$317,301
745 Avenue Guy Poulin
Saint-Joseph, Quebec
GOS 2V0
Tel: (418) 397-5775
Fax: (418) 397-8263

National Spinning Co., Inc.      Trade                US$302,354
NW7930
P.O. Box 1450
Minneapolis, MN 55485-7930
Tel: (252) 382-6478
Fax: (212) 382-6450

Regitex                          Trade                US$274,430
745 Avenue Guy Poulin
Saint-Joseph, Quebec
GOS 2V0
Tel: (418) 397-5775
Fax: (418) 397-8263

Noveon, Inc.                     Trade                US$240,344

Direct Energy Services, LLC      Utility              US$217,254

National Grid                    Utility              US$214,616

Alvarez & Marsal                 Consulting           US$197,000

Burke Mills, Inc.                Trade                US$195,464

Huntsman Int'l LLC               Trade                US$181,149

City of Fall River               Taxes                US$143,418

St. Paul Travelers               Insurance            US$143,021

American Dornier Machine         Parts                US$139,428

Infor. Global Solutions, Inc.    Service              US$136,064

Crypton, Inc.                    Trade                US$127,575

IBM Corp.                        Service              US$118,682

Lubrizol Advance Materials       Trade                US$113,229

Helmsman Management              Insurance            US$112,582

Texturing Services, Inc.         Trade                US$112,338

Toyota Motor Credit Corp.        Equipment            US$106,404
Commercial Finance

Harvard Logistics                Freight              US$100,817

Tuscarora Yarns, Inc.            Trade                 US$94,572

Grover Industries Inc.           Trade                 US$90,776

New England Gas Company          Utility               US$70,320

Fedex Corp.                      Shipping              US$65,660

Paetec Communications Inc.       Utility               US$62,855

Dexter Chem Corp. LLC            Trade                 US$59,567

Bostik Findley                   Trade                 US$58,927

Clocktower Enterprises           Rental                US$47,030

Phoenix International            Freight               US$45,666

System Trading                   Service               US$45,492

Safedata LLC                     Service               US$42,400

Ryder Transportation Service     Rental                US$37,995

Chesterfield Yarns               Trade                 US$36,414


QUAKER FABRIC: Files for Chapter 11 Bankruptcy Protection
---------------------------------------------------------
Quaker Fabric Corporation and its wholly owned subsidiary,
Quaker Fabric Corporation of Fall River, have filed voluntary
petitions for relief under Chapter 11 of the U.S. Bankruptcy
Code in the U.S. Bankruptcy Court for the District of Delaware.
Quaker's affiliates outside the United States were not included
in the Chapter 11 filing.

On July 2, 2007, the company likely would commence an orderly
liquidation of its business and a sale of its assets and that
any such winding up and liquidation would not generate
sufficient funds to permit any payment to holders of its common
stock.

On July 9, 2007, the company retained an experienced liquidation
advisory firm to consult with management on the liquidation of
the assets of the company in a manner intended to yield the
greatest return to the company's creditors.  This process has
been ongoing, with the Company seeking bids from qualified
buyers for the purchase of the company as a whole, as well as on
each asset class, including machinery and equipment, raw
material and finished goods inventory, accounts receivable,
intellectual property and real estate.

During the Chapter 11 proceedings, this process will continue
under court supervision.  In addition, the Company has reached
an agreement for up to US$1,650,000 in new debtor-in-possession
financing.  Upon Court approval, this DIP financing will provide
sufficient funding during the Chapter 11 process.

The company commenced its annual two-week planned shutdown on
June 29, 2007, and did not have the financing needed to resume
operations on July 16, which would otherwise have marked the end
of the shutdown period.  On July 2, the employment relationships
of substantially all of the company's 930 employees were
terminated.

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

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


RYERSON INC: ISS Suggests Re-Election of Board of Directors
-----------------------------------------------------------
Institutional Shareholder Services, an independent proxy
advisory firm, issued a recommendation to re-elect all 11
members of Ryerson Inc. board of directors.

After conducting a thorough analysis and meeting with both
Ryerson and Harbinger, ISS has concluded that:

   -- Harbinger has not presented any plan on how it would
      manage the company differently;

   -- Harbinger lacks any formal strategy to create value for
      stockholders;

   -- the sale process resulting in the $34.50 per share merger
      with Platinum Equity is fair and stockholders should have
      the right to vote on the transaction; and

   -- Ryerson's financial performance has performed in line with
      its peers, contrary to Harbinger's arguments.

"We are extremely pleased with ISS' recommendation that
stockholders should vote 'FOR' Ryerson's entire board of
directors and reject all of Harbinger's nominees," Neil Novich,
chief executive officer of Ryerson, said.

"ISS clearly supports our view that all stockholders should have
a right to vote on the proposed acquisition with Platinum Equity
and that the board has run a thorough strategic review and
auction process," Mr. Novich continued.  "We believe that the
US$34.50 per share agreement we have reached with Platinum is at
a fair price with committed financing in an uncertain credit
market."

ISS also recommended that stockholders support the board's
recommendations on the other voting matters at the meeting.

"The board will continue to focus on completing the merger with
Platinum Equity as it is in the best interest of all
stockholders," Mr. Novich added.

Ryerson urges all stockholders to follow ISS' independent
recommendation to vote on the WHITE proxy card at the company's
Annual Meeting of Shareholders Thursday, Aug. 23, 2007.

The definitive proxy statement and other documents may be
obtained free from Ryerson by directing a request to:

     Ryerson Inc.
     ATTN: Investor Relations
     2621 West 15th Place
     Chicago, IL 60608

               About Harbinger Capital Partners

The Harbinger Capital Partners investment team located in New
York City manages in excess of US$5 billion in capital through
two complementary strategies.  Harbinger Capital Partners Master
Fund I Ltd. is focused on restructurings, liquidations, event-
driven situations, turnarounds, and capital structure arbitrage,
including both long and short positions in highly leveraged and
financially distressed companies.  Harbinger Capital Partners
Special Situations Fund L.P. is focused on distressed debt
securities, special situation equities, and private loans/notes
in a predominantly long-only strategy.

                      About Ryerson Inc.

Ryerson Inc. (NYSE: RYI) -- http://www.ryerson.com/-- is a
distributor and processor of metals in North America, with 2006
revenues of US$5.9 billion.  The company services customers
through a network of service centers across the United States
and in Canada, Mexico, India, and China.  On Jan. 1, 2006, the
company changed its name from Ryerson Tull Inc. to Ryerson Inc.

                        *     *     *

As reported in the Troubled Company Reporter on July 26, 2007,
Moody's Investors Service placed Ryerson Inc.'s B1 corporate
family rating under review for possible downgrade.


TELTRONICS INC: Posts US$1.5 Mil. Net Loss in Qtr. Ended June 30
----------------------------------------------------------------
Teltronics Inc. reported net loss of US$1.5 million for the
three months ended June 30, 2007, as compared to net income of
US$755,000 for the same period in 2006.

The company has net loss of US$2.6 million for the six months
ended June 30, 2007, as compared to a net income of US$195,000
for the same period in 2006.

The net loss available to common shareholders for the three
months ended June 30, 2007, was US$1.8 million as compared to
net income of US$592,000 for the same period in 2006.

The net loss available to common shareholders for the six months
ended June 30, 2007, was US$3 million as compared to a net loss
of US$131,000 for the same period in 2006.

Operating expenses for the three months ended June 30, 2007 were
US$3.7 million, as compared to US$3.9 million for the same
period in 2006.

Operating expenses for the six months ended June 30, 2007, were
US$7.8 million, as compared to US$8.1 million for the same
period in 2006.

"We continued to have a short fall in revenues in the second
quarter due to timing issues and a slow down in our New York
cabling business," Ewen Cameron, Teltronics' president and CEO,
said.  "This was compounded by the US$570,000 of fees involved
in terminating the CapitalSource financing arrangement."

At June 30, 2007, the company's balance sheet showed total
assets US$15.2 million and total liabilities of US$19.6 million,
resulting to total shareholders' deficiency US$4.4 million.

                     About Teltronics Inc.

Headquartered in Sarasota, Florida, Teltronics Inc. (OTCBB:
TELT) -- http://www.teltronics.com/-- provides communications
solutions and services for businesses.  The company manufactures
telephone switching systems and software for small-to-large size
businesses and government facilities.  Teltronics offers a full
suite of Contact Center solutions -- software, services and
support -- to help their clients satisfy customer interactions.
Teltronics also provides remote maintenance hardware and
software solutions to help large organizations and regional
telephone companies effectively monitor and maintain their voice
and data networks.  The company serves as an electronic
contract manufacturing partner to customers in the US and
overseas.

The company designs, installs, develops, manufactures and
markets electronic hardware and application software products
and also engages in electronic manufacturing services in the
telecommunication industry.  The company's products are
classified into intelligent systems management, digital
switching systems, voice over Internet protocol, customer
contact management systems and emergency response systems.
Overall operations are classified into three reportable
segments: Teltronics, Inc., Teltronics Limited (UK) and Mexico.
Its Mexico office is located at Naucalpan de Juarez.


URBI DESARROLLOS: Moody's Places Ba3 Rating on MXN3-Bil. Program
----------------------------------------------------------------
Moody's has assigned A3.mx national scale and Ba3 global scale,
local currency, ratings to the MXN3 billion MTN program of Urbi
Desarrollos Urbanos S.A. de C.V., as well as an MX-2 national
scale rating (Not Prime global scale) to its commercial paper
program.  The rating outlook is stable.  The company's Ba3
global scale local currency issuer rating was also affirmed.

"These ratings reflect Urbi's modest leverage and diverse, Top-
10 competitive position, which help it to respond effectively to
the volatile Mexican property market," says Philip Kibel,
Moody's analyst.  Urbi has produced consistent, sound
profitability and maintained good liquidity with a conservative
capital structure.  The company is publicly held, with a solid
corporate infrastructure, which enhances transparency and
governance.  Urbi's large land bank, good cost controls, and
sophisticated construction and sales management platforms
support its strong operating margins.

Urbi's primary credit challenges are its reliance on the Mexican
economic and political environment, and the high costs of land
and land development.  Furthermore, the housing development
market is fragmented, and homes are built on a predominately
speculative basis, since Urbi and other home developers have the
risk of finding homebuyers.  The funding of homes remains
concentrated with Sociedad Hipotecaria Federal, INFONAVIT and
FOVISSTE -- all government-related entities -- and the timing of
receipt of the mortgages funded by them can range from three to
twelve months.

The stable rating outlook reflects Moody's expectation that Urbi
will maintain a conservative approach to leverage, stable
earnings and will make no missteps in its Alternativa Urbi
program, a new rent-to-own program.  Moody's believes that Urbi
has solid franchise value, with a well-recognized brand.
Furthermore, Moody's expects that Urbi will continue to focus on
targeting all segments of the housing market, thus providing
some diversification, while maintaining high quality
construction and good operating controls.

A rating upgrade would reflect a reduction in leverage, measured
as debt to total assets below 10%, and debt to EBITDA below 1.
An upgrade would also be considered should EBITDA/Interest
approach 10, all while the company continues to improve its
industry leadership and successfully implements the Alternativa
Urbi program.

A rating downgrade would result from substantial missteps in the
new Alternativa Urbi program, as well as debt to total assets
approaching 20%, fixed charge coverage falling below 4, and
operating margins falling below 15%.  A downgrade could also
result from falling out of the Top-10 of homebuilders in terms
of units sold, as well as from an adverse shift in the Mexican
Government's housing policy, which we do not expect.

Urbi Desarrollos Urbanos is a publicly traded, fully integrated
homebuilder engaged in the development, construction, marketing
and sale of affordable housing in Mexico.  The firm reported
assets of MXN18.3 billion and equity of MXN9 billion at
June 30, 2007.

Urbi is one of the largest housing developers in Mexico.  The
company builds and sells houses mainly in the states of Baja
California, Sonora, Sinaloa, Chihuahua, Nuevo Leon,
Aguascalientes, Jalisco, and Mexico City's metropolitan area.
Urbi specializes in affordable entry-level and low middle-income
housing, although it also participates in high middle-income and
upper-income housing segments.  At March 31, 2007 Urbi sold
7,170 houses and earned MXN10.6 billion in revenues.




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


ADELPHIA COMM: Reports Distributions to Allowed Claim Holders
-------------------------------------------------------------
Adelphia Communications Corporation disclosed subsequent
distributions of US$531 million in cash and 6,453,341 shares of
TWC Class A Common Stock to holders of Allowed Claims against
the parent Adelphia Communications Corporation pursuant to the
First Modified Fifth Amended Joint Chapter 11 Plan of
Reorganization of Adelphia Communications Corporation and
Certain Affiliated Debtors, dated as of Jan. 3, 2007, as
confirmed.  The 6,453,341 shares of TWC Class A Common Stock to
be distributed have a "Deemed Value" under the Plan of US$244
million and a fair market value as of Aug. 16, 2007 (based on
the closing price on that date) of US$220 million.

A chart summarizing the distribution of cash and shares of TWC
Class A Common Stock to be made to classes of ACC Claims is
available for free at http://ResearchArchives.com/t/s?22ab

Based in Coudersport, Pennsylvania, Adelphia Communications
Corporation (OTC: ADELQ) -- http://www.adelphia.com/-- is a
cable television company.  Adelphia serves customers in 30
states and Puerto Rico, and offers analog and digital video
services, Internet access and other advanced services over its
broadband networks.  The company and its more than 200
affiliates filed for Chapter 11 protection in the Southern
District of New York on June 25, 2002.  Those cases are jointly
administered under case number 02-41729.  Willkie Farr &
Gallagher represents the Debtors in their restructuring efforts.
PricewaterhouseCoopers serves as the Debtors' financial advisor.
Kasowitz, Benson, Torres & Friedman, LLP, and Klee, Tuchin,
Bogdanoff & Stern LLP represent the Official Committee of
Unsecured Creditors.

Adelphia Cablevision Associates of Radnor, L.P., and 20 of its
affiliates, collectively known as Rigas Manged Entities, are
entities that were previously held or controlled by members of
the Rigas family.  In March 2006, the rights and titles to these
entities were transferred to certain subsidiaries of Adelphia
Cablevision LLC.  The RME Debtors filed for chapter 11
protection on March 31, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10622
through 06-10642).  Their cases are jointly administered under
Adelphia Communications and its debtor-affiliates' chapter 11
cases.

The Court confirmed the Debtors' First Modified Fifth Amended
Joint Chapter 11 Plan of Reorganization on Feb. 13, 2007.


BARMA FOODS: Case Summary & 22 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Barma Foods, Inc.
        dba Productos Oscar
        Urb. Industrial Minillas
        325 Calle D, Suite 7
        Bayamon, PR 00959-1906

Bankruptcy Case No.: 07-04583

Type of business: The Debtor is a food manufacturer.

Chapter 11 Petition Date:

Court: District of Puerto Rico (Old San Juan)

Debtor's Counsel: Carmen D. Conde Torres, Esq.
                  254 San Jose Street
                  5th Floor
                  San Juan, PR 00901-1523
                  Tel: (787) 729-2900
                  Fax: (787) 729-2203

Estimated Assets: US$100,000 to US$500,000

Estimated Debts: US$1 Million to US$10 Million

Debtor's 22 Largest Unsecured Creditors:

   Entity                             Claim Amount
   ------                             ------------
Pridco                                   US$98,496
P.O. Box 362350
San Juan, PR
00936-2350

B.P.P.R.                                 US$35,000
P.O. Box 362708
San Juna, PR
00936

Alco High Tech                           US$26,762
Plastic
P.M. Box 2028
Corozal, PR
00783

Ochoa                                    US$22,821

Miguel Santiago                          US$20,318

Helapan, Inc.                            US$15,945

Chesso, Inc.                             US$15,256

Provisiones Legrand                      US$12,766
Merc. Central

Dawn Food International                  US$9,492

Dawn Food International
US$9,492

Autoridad de Energia                     US$7,816
Electrica

J.C. Cheese Caribe Corp.                 US$6,000

Caribe Carton, Inc.                      US$5,780

Comidas Criollas Elizabeth               US$4,478

Smurfit-Stone P.R., Inc.                 US$4,274

Empresas Barsan, Inc.                    US$4,012

Belca Wholesale Centro                   US$3,960
Mercantil International

Suarez, Fermin                           US$3,955

Agramar Corp.                            US$3,732

Isla Food Meat, Inc.                     US$3,300

Mark Trece de Puerto Rico                US$3,175


MAIDENFORM: Moody's Puts Ba2 Rating on US$100-Mil. Term Loan
------------------------------------------------------------
Moody's investors services has assigned Ba2 ratings to
Maidenform's new senior secured US$50 million revolver and
US$100 million term loan, the proceeds of which will be used to
refinance the company's existing senior secured revolver and
term loan.  At the same time, Moody's has affirmed the company's
corporate family rating at Ba3 and probability of default rating
at B1.  The outlook remains stable.  The ratings on the existing
US$50 million revolver and US$150 million term loan are being
withdrawn at this time.

Maidenform's Ba3 corporate family rating reflects the company's
well known brands and product innovations that help drive strong
operating margins, improving channel diversity with penetration
into the mass market, albeit at lower margins, and financial
metrics that are strong for the current rating.  Maidenform's
ratings are constrained by its lack of scale in revenue while
operating primarily in the highly competitive, commoditized
intimate apparel segment.  While the company's move into the
mass market improves its channel diversity, it also may result
in increased its customer concentration.

The stable outlook reflects the expectation that Maidenform will
continue to reduce debt levels while maintaining strong
operating margins in a competitive marketplace and its financial
metrics remain at levels appropriate for the current rating
category.  While the current rating category has room for tuck-
in acquisitions that improve diversity, Moody's would expect the
company to remain conservative in its financial policies and not
become aggressive in large debt financed acquisitions or
shareholder friendly activities.

Approximately US$150 million of rated debt affected

  These ratings were assigned:

  -- US$50 million senior secured revolver at Ba2 (LGD2 29%)
  -- US$100 million senior secured term loan at Ba2 (LGD2 29%)

  These ratings were affirmed:

  -- Corporate Family Rating at Ba3
  -- Probability of Default Rating at B1

  These ratings were withdrawn:

  -- US$50 million senior secured revolver, was Ba2 (LGD2 29%)
  -- US$150 million senior secured term loan, was Ba2 (LGD2 29%)

Maidenform Brands, Inc., the parent of Maidenform, Inc., is a
designer and marketer of intimate apparel, including the
Maidenform, Flexees and Lilyette brands.  Based in Bayonne, New
Jersey, the company had revenues of US$425 million for the last
12 months ending June 30, 2007.

Headquartered in Bayonne, New Jersey, Maidenform Brands, Inc. --
http://www.maidenform.com/-- and its subsidiaries design,
source, and market a range of intimate apparel products in the
United States and Canada.  Its products include bras, panties,
and shapewear.  The company offers its products under the
Maidenform, Flexees, Lilyette, Sweet Nothings, Rendezvous,
Subtract, Bodymates, and Self Expressions brand names.
Maidenform Brands sells its products through department stores;
national chain stores; mass merchants, including warehouse
clubs; and specialty retailers, licensing income, and off-price
retailers, as well as through company-operated outlet stores and
Web sites.  As of Dec. 31, 2006, it operated 76 outlet stores.
Maidenform products are currently distributed in 48 foreign
countries and territories, including the Philippines and Puerto
Rico.




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


PEABODY ENERGY: Reports Organizational Changes
----------------------------------------------
Peabody Energy Corporation disclosed several organizational
changes to expand the company's continuous improvement
initiatives.

Walter J. Scheller III has been named Senior Vice President and
Group Executive of Colorado Operations, which include the
Twentymile Mine and related facilities near Steamboat Springs.
Mr. Scheller will be responsible for the day-to-day operations
activities of the mine, including safety, continuous
improvement, environmental management, and the review of
strategic growth opportunities in Colorado.  He reports to Group
Vice President of Western Operations Kemal Williamson.

Mr. Scheller joined the company in 2006 as Senior Vice President
of Strategic Operations Improvement.  He has more than 20 years
of experience in operations and mining engineering and is a
graduate of West Virginia University with a Bachelor of Science
in Mining Engineering.  He holds a Juris Doctorate from Duquesne
University School of Law and a master's degree in Business
Administration from the University of Pittsburgh.

In addition, Larry B. Ellgen has been named Group Controller for
the Colorado Operations, reporting to Scheller, effective
Sept. 1.  Mr. Ellgen has nearly 20 years of coal industry
experience in various financial functions.  He holds a Bachelor
of Science degree in Accounting from Brigham Young University.

Charles F. Meintjes will join the company as Senior Vice
President of Operations Improvement, replacing Mr. Scheller. In
this position, Mr. Meintjes will be responsible for leading the
company's operations continuous improvement initiatives and
implementation of standard operating procedures across Peabody
global operations.  He will report to Executive Vice President
and Chief Operating Officer Eric Ford.

Mr. Meintjes has a strong mining industry background and has
managed financial and technical functions, large re-engineering
programs, IT system implementations, and large industrial
construction projects.  He most recently served as a consultant
to Exxaro Resources Limited in Pretoria, South Africa, and is
the former Executive Director, board member and Executive Vice
President of Support Services of Kumba Resources Limited, one of
the largest iron ore, coal, zinc and heavy minerals mining
companies in South Africa.  He also has senior management
experience in continuous improvement and information services
with Iscor Limited (now Mittal Steel) and Alusaf Limited in
South Africa.

Mr. Meintjes holds Bachelor of Commerce degrees in Accounting
from both Rand Afrikaans University and the University of South
Africa.  He is a Chartered Accountant in South Africa.

In addition, several management changes have been made in the
finance and commercial organizations.

   -- Lina A. Young has been named to the new position of Senior
      Vice President of Marketing Commercial Services, effective
      Sept. 24.  Young will report to COALSALES President Bryan
      A. Galli.  Reporting to Mr. Young will be Curtis P.
      Tichenor, Vice President of Commercial Analytics and
      Contract Management; F. Andrew Roberts, Director of Market
      Analysis; and Leah A. Bennett, Senior Accounting Manager.
      Lisa M. Cantwell has also been named Director of Contract
      Management, effective Sept. 1, reporting to Mr. Tichenor.

   -- Robert L. Reilly has been named Senior Vice President of
      Business and Resource Development, reporting to Chief
      Financial Officer and Executive Vice President of
      Corporate Development Richard A. Navarre.  Mr. Reilly
      replaces Charles A. Ebetino, who will become Senior Vice
      President of Corporate Development at such time as a
      spinoff or other transaction occurs to create Patriot Coal
      Corporation.  Reporting to Mr. Reilly are Vice President
      of Resource Development James C. Sevem and a shared
      Business Development Resource group.

   -- Walter L. Hawkins has been named Senior Vice President and
      Treasurer, also reporting to Navarre.  Reporting to
      Mr. Hawkins are Director of Insurance and Enterprise Risk
      Management Ryan W. Brown, Director of Credit Management
      Matthew S. Davis, Manager of Treasury Operations John
      F. Busch and an Assistant Treasurer.  The Risk Management
      function, headed by Thomas B. Swaykus, will now also
      report to Mr. Hawkins.

   -- Michael C. Crews has been named to the new position of
      Vice President of Operational Planning, reporting to
      Executive Vice President and Chief Operating Officer Eric
      Ford.  Reporting to Mr. Crews will be Jeffrey D.
      Timmermann, Director of Operational Planning.

   -- Bradley E. Phillips replaces Mr. Crews as Vice President
      of Financial Planning and Analysis, also reporting to
      Mr. Navarre.  Reporting to Mr. Phillips are James F.
      Gardner, Director of Capital Planning, and Amy B. Schwetz,
      Director of Financial Planning.  Mr. Schwetz replaces
      Mr. Phillips as Director of Financial Planning.  Reporting
      to Mr. Schwetz are Daniel E. Heath, Senior Manager of
      Financial Planning and Carolyn G. Bowles, Manager of
      Financial Planning.

   -- Debra A. Drake has been named to the new position of Vice
      President of Trading and Administration, reporting to
      COALTRADE President Stephen L. Miller.  Reporting to
      Mr. Drake are Director of Trading Robert E. Carswell and
      Senior Manager of Sales and Marketing Victor H. Soto.

   -- Robert W. Bland, Vice President of Sales and Marketing,
      will now report to COALTRADE President Stephen L. Miller.

   -- Barbara E. Busby, Vice President of Sales and Marketing,
      will now report to Senior Vice President of Sales and
      Marketing for the Powder River Basin James C. Campbell Jr.

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.


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

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

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Aug. 15, 2007, Moody's Investors Service affirmed Timken's Ba1
corporate family rating and the Ba1 rating on Timken's US$300
million Medium Term Notes, Series A.


TIMKEN CO: Explores Strategic Alternatives to Accelerate Growth
---------------------------------------------------------------
The Timken Company disclosed changes to align the company around
continued improvement in operational performance and
acceleration of profitable growth.

Under the new model, Timken will operate with two major business
groups, the Steel Group and the Bearings and Power Transmission
Group, which is composed of four divisions -- Mobile Industries,
Process Industries, Aerospace & Defense and Distribution &
Services.  The company has named Michael C. Arnold as executive
vice president and president, Bearings and Power Transmission
Group. Salvatore J. Miraglia, Jr., will continue as president of
the Steel Group.

Timken has also named Jacqueline A. Dedo senior vice president,
Innovation and Growth.  In this role, Ms. Dedo will be
responsible for leading the company's strategic initiatives to
accelerate the pace of innovation and growth.

"With focused leadership and a strong balance sheet, we are well
positioned to aggressively pursue growth opportunities with the
potential to create exceptional value for customers and
shareholders," James W. Griffith, Timken's president and chief
executive officer said.  "In addition, as we implement this
model, we expect to benefit from faster, more effective
decision-making and less complexity in all parts of our
business, allowing us to drive further improvement in our
financial performance."

The organizational changes are focused primarily on improving
Timken's operating effectiveness and are also anticipated to
streamline operations and eliminate redundancies.  When fully
implemented, the company expects to save approximately US$10
million to US$20 million as a result of the changes.

Timken's new Bearings and Power Transmission Group includes four
divisions:

   * Mobile Industries: composed of the rail, off-highway,
     agriculture, heavy truck and passenger car and light truck
     market sectors;

   * Process Industries: encompasses the heavy industry, power
     transmission and energy market sectors;

   * Aerospace & Defense: serves the friction-management and
     power-transmission needs of commercial and military
     aviation customers through original equipment manufacturers
     and the aerospace aftermarket; and

   * Distribution & Services: provides a full range of bearings,
     seals, grease, condition monitoring and other products and
     services through distributors worldwide.

Timken will report its third-quarter 2007 financial results
using the existing Steel, Industrial and Automotive Groups.
Beginning with the fourth quarter of 2007, the company expects
to make a change to its financial reporting, providing results
for the Steel Group as before, along with more detailed results
for the new Bearings and Power Transmission Group.

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

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Aug. 15, 2007, Moody's Investors Service affirmed Timken's Ba1
corporate family rating and the Ba1 rating on Timken's US$300
million Medium Term Notes, Series A.


* VENEZUELA: Cantv Reduces Call Rates to Peru by 50%
----------------------------------------------------
Venezuelan state-owned telecom firm Cantv offered 50% reductions
on rates for calls to Peru from Aug. 16 to Aug. 19, Business
News Americas reports.

The reduction promotion was applied to fixed to fixed calls,
BNamericas says.

BNamericas relates that Argentine and Venezuelan telecoms
reduced fixed telephony calling rates to Peru by 50%, "as a mark
of solidarity" with the nation.

According to BNamericas, Peru suffered great loss of life and
damage to telecoms infrastructure in an earthquake last week.

Telecom Argentina and Telefonica de Argentina also had said in
separate statements that they would decrease call rates,
BNamericas states.

                    About Telecom Argentina

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%).

                  About Telefonica de Argentina

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

                        *     *     *

As reported in the Troubled Company Reporter on 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
Chiarelli SA             CCHI3     (58.72)      36.44
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     (758.79)     457.40
Angel Estrada            ESTR      (68.23)      68.97
Estrada-A                ESTR5     (68.23)      68.97
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
Rimet                    REEM3    (219.34)      93.47
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 * * *