TCRLA_Public/070912.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

         Wednesday, September 12, 2007, Vol. 8, Issue 181

                          Headlines

A R G E N T I N A

BARCUER SA: Trustee to File Individual Reports on Dec. 4
COTESE SRL: Trustee Verifies Proofs of Claim Until Nov. 13
DELTA AIR: Comair Creditors Want to Conduct Rule 2004 Exam
FAYLUP SA: Proofs of Claim Verification Is Until Nov. 14
FIAT SPA: Quells Rumors on Joint Bid for Jaguar & Land Rover

JORGE SEQUENZA: Proofs of Claim Verification Is Until Sept. 13
LA DOLCE: Proofs of Claim Verification Deadline Is Sept. 26
LITERARIA JURIDICA: Claims Verification Deadline Is Nov. 16
MELICER SA: Proofs of Claim Verification Deadline Is Sept. 12
TELECOM ARGENTINA: Telefonica Must Present More Documentation

TELEFONICA DE ARGENTINA: Parent Must Present More Documentation
TEXTIL UNO: Proofs of Claim Verification Deadline Is Sept. 12


B A H A M A S

BANK OF BARODA: Looking for Partner to Revive Card Division


B E R M U D A

ALEA GROUP: Reports Interim Results; Updates Run-Off Activities
ENDURANCE ESPECIALTY: Inks Equity Deal with Deutsche Bank Unit
SCOTTISH RE: Clearwater Closes US$555-Mil. Financing Transaction


B O L I V I A

* BOLIVIA: Twelve Firms To Invest US$588 Million in Nation


B R A Z I L

BANCO NACIONAL: Invests BRL12 Mil. on Cinematographic Production
BANCO NACIONAL: Hires Independent Auditor to Appraise Brasiliana
COMPANHIA SANEAMENTO: Fitch Affirms BB Issuer Default Ratings
DELPHI CORP: Discloses Treatment of Claims Under Chapter 11 Plan
DELPHI CORP: Says Disclosure Statement Is Adequate

EUTELSAT COMMS: Extends Distribution Agreement with Viasat
FORD MOTOR: Offers Up to US$1,000 Bonus in "Swap Your Ride" Deal
GENERAL MOTORS: Crossover Units Lure Drivers from Asian Cars
GENERAL MOTORS: Inks MOU with Isuzu for Commercial Car Deal
IWT TESORO: Case Summary & 30 Largest Unsecured Creditors

MYERS INDUSTRIES: GS Capital Acquisition to Close in Fourth Qtr.
SANYO ELECTRIC: Advantage Outbids LongReach for Semicon Unit

* BRAZIL: State Firm Says Xerelete Is Commercially Viable
* BRAZIL: State Firm Investing US$4.9 Billion in US Operations


C A Y M A N   I S L A N D S

AHFP LUMEN: Will Hold Final Shareholders Meeting on Oct. 4
BASIS YIELD: Court Extends Injunction Until Nov. 19
MACQUARIE FINANCIAL: Proofs of Claim Filing Is Until Oct. 4
PET-HOC INC: Will Hold Final Shareholders Meeting on Oct. 4
RHAPSODY LEASING: Proofs of Claim Filing Ends on Oct. 4

STERLING EQUITY: Proofs of Claim Filing Deadline Is Oct. 4
STONE HOLDINGS: Proofs of Claim Must be Filed by Oct. 4
TRISTAN SECURITIES: Sets Final Shareholders Meeting for Oct. 4
VENUS INVESTMENT: Proofs of Claim Filing Ends on Oct. 4
ZEBRA US: Proofs of Claim Filing Deadline Is Oct. 4


C O S T A   R I C A

COVANTA HOLDING: Will Acquire EnergyAnswers' Operating Business


C U B A

* CUBA: Strengthens Economic Relations with Turkey


D O M I N I C A N   R E P U B L I C

* DOMINICAN REPUBLIC: Financial Sector Risks Lessens, Says IMF


E L   S A L V A D O R

AES CORP: Hiring Independent Auditor for Brasiliana Appraisal


G U A T E M A L A

AFFILIATED COMPUTER: Renews US$19MM Services Contract w/ Boston


M E X I C O

ARROW ELECTRONICS: Partners w/ IBM Global Engineering Solutions
CINRAM INT'L: Declares CDN$0.2708 Per Unit Cash Distribution
CKE RESTAURANTS: Paying US$0.06 Per Share Dividends on Nov. 26
FIRST DATA: KKR Okays Covenant on US$24-Billion Debt, WSJ Says
ICONIX BRAND: Inks Pact to Buy Official Pillowtex for US$231 Mln

SOLO CUP: Selling Hoffmaster Biz to Kohlberg Unit for US$170 Mln
VITRO SAB: Suspends Operations Due to Natural Gas Supply Failure


N I C A R A G U A

* NICARAGUA: Orders Cancellation of Geosa Privatization


P A N A M A

STARTECH ENVIRONMENTAL: Appoints Distributor for UK & Poland

* PANAMA: Casinos Keep Wary Eyes on U.S. Authorities


P E R U

COMVERSE TECH: Reports Prelim Fin'l Results in Second Quarter


P U E R T O   R I C O

COVENTRY HEALTH: Completes Florida Health Acquisition
STEWART ENTERPRISES: Earns US$8.1 Mil. in Quarter Ended July 31


V E N E Z U E L A

PETROLEOS DE VENEZUELA: Has US$797 Million Fund in Fonden
PETROLEOS DE VENEZUELA: Inks Vengas & Tropigas Purchase Deals
PETROLEOS DE VENEZUELA: Plans New Piping & Steel Factories


                         - - - - -


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


BARCUER SA: Trustee to File Individual Reports on Dec. 4
--------------------------------------------------------
Laura Garcia, the court-appointed trustee for Barcuer SA's
bankruptcy proceeding, will present the validated claims as
individual reports in the National Commercial Court of First
Instance in La Plata, Buenos Aires, on Dec. 4, 2007.

Ms. Garcia verifies creditors' proofs of claim until
Oct. 22, 2007.

A general report that contains an audit of Barcuer's accounting
and banking records will be submitted in court.

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

The trustee can be reached at:

          Laura Garcia
          Simbron 3537
          Buenos Aires, Argentina


COTESE SRL: Trustee Verifies Proofs of Claim Until Nov. 13
----------------------------------------------------------
Mario Daniel Krasnansky, the court-appointed trustee for Cotese
S.R.L.'s reorganization proceeding, verifies creditors' proofs
of claim until Nov. 13, 2007.

Mr. Krasnansky will present the validated claims in court as
individual reports on Dec. 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 Cotese 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 Cotese's accounting
and banking records will be submitted in court on
March 10, 2008.

The informative assembly will be held on Aug. 20, 2008.
Creditors will vote to ratify the completed settlement plan
during the assembly.

The trustee can be reached at:

         Mario Daniel Krasnansky
         Viamonte 1785
         Buenos Aires, Argentina


DELTA AIR: Comair Creditors Want to Conduct Rule 2004 Exam
----------------------------------------------------------
Comair Creditors note that seven weeks after confirmation of the
Delta Air Lines Inc. and its affiliates' Joint Plan of
Reorganization, the Reorganized Debtors disclosed that the
estimate of the amount of unsecured claims against the Comair
Debtors had increased from US$800,000,000 to US$1,050,000,000.

The additional US$250,000,000 of claims had a dramatic impact on
projected Comair unsecured creditor recoveries, Evan C.
Hollander, Esq., at White & Case LLP, in New York, points out.
"The mid-point of the recovery range for Comair unsecured
creditors was projected in the Plan to be greater than 91%.  The
projected mid-point of the recovery range is now less than 70%."

Lehman Brothers Inc., Varde Partners, Inc., Talek Investments,
Par-Four Investment Management, LLC, Societe Generale Corporate
& Investment Banking, Contrarian Funds, LLC, and Cypress
Management are determined to investigate the cause of the
dramatic increase in the Comair unsecured claims pool, and to
learn when the Debtors became aware that the amount of general
unsecured claims would be materially greater than the US$800
million projected in the Disclosure Statement.

Thus, Comair Creditors seek the U.S. Bankruptcy Court for the
Southern District of New York's authority to conduct an
examination on the Reorganized Debtors in respect of matters
within the scope of Rule 2004 of the Federal Rules of Bankruptcy
Procedure, including:

  * the terms of any proposed claims settlements in excess of
    US$5,000,000 and any restructured aircraft finance
    transactions the Debtors entered into without Court
    approval;

  * the timing of those claims settlements, including when the
    Debtors first negotiated the settlements;

  * the oversight provided by the Official Committee of
    Unsecured Creditors and the Post-Effective Date Committee in
    the claims resolution process;

  * when the Debtors first learned that the level of unsecured
    claims against the Comair Debtors would be materially
    greater than US$800,000,000;

  * what information the Debtors had regarding the increase in
    the Comair claims pool, including the reasons for that
    increase;

  * when the Debtors obtained information that led them to
    believe that the estimated level of claims projected in
    the Disclosure Statement was materially inaccurate; and

  * the methodology by which the Debtors reviewed proposed
    claims settlements and restructured aircraft finance
    transactions.

In particular, the Comair Creditors ask the Court to direct the
Reorganized Debtors to:

  (a) produce documents on the Sought Information for
      examination and copying;

  (b) designate knowledgeable representatives for examination
      regarding the Sought Information; and

  (c) cause those representatives to appear for examination by
      oral deposition.

While the Reorganized Debtors have met with the Comair Creditors
to discuss the cause of the increase, they have not yet
committed to the scope of the documents and information that
they will provide, Mr. Hollander informs Judge Hardin.
Moreover, the Debtors have refused to provide information
regarding when they became aware that the Comair claims pool was
materially understated.

All of the Sought Information is necessary for the Comair
Creditors to assess their rights and remedies in respect of the
Debtors' bankruptcy cases to the extent it is determined that
the Post-Effective Date Committee is not protecting the
interests of its constituents, the Comair Creditors, Mr.
Hollander asserts.

         Debtors & Post-Effective Date Committee React

Michael E. Wiles, Esq., at Debevoise & Plimpton LLP, in New
York, contends that the Comair Creditors' request for the
Debtors to obtain the Court's approval with respect to the Post-
Petition Aircraft Agreements and the resolution of claims is
flatly contrary to the terms of the Plan, and should therefore
be denied.

Mr. Wiles informs the Court that despite the Debtors' repeated
demands, the Comair Creditors have not yet filed the
disclosures required by Rule 2019 of the Federal Rules of
Bankruptcy Procedure concerning the nature of the claims they
allegedly hold against the Comair Debtors, the dates the claims
were acquired, and other related matters.

The Plan, Mr. Wiles points out, explicitly provides that the
Reorganized Debtors may settle claims in their absolute
discretion, without Court approval and subject only to the Post-
Effective Date Committee's review of aircraft claims exceeding
US$30,000,000.  "There is no other limit in the Plan on the
Reorganized Debtors' discretion to settle claims," he
emphasizes.

Furthermore, the Plan has been confirmed and implemented.  "If
the [Comair Creditors] wished to object to the provisions of the
Plan regarding the approval of the Post-Petition Aircraft
Agreements and the settlement of claims, they should have done
so prior to the April 9, 2007 objection deadline set by [the]
Court," Mr. Wiles says.  "They did not do so."

The Debtors and the Post-Effective Date Committee also assert
that the Comair Creditors' request for a Rule 2004 exam should
be denied.  The Comair Creditors' information request is
exceedingly broad and is extraordinarily burdensome and
expensive, Mr. Wiles argues.

What the Comair Creditors really wish to do, according to Mr.
Wiles, is to modify the Plan and to inject themselves, either in
place of or in addition to the Post-Effective Date Committee, as
entities that may monitor restructuring and claims decisions.
The Comair Creditors, however, are not proponents of the Plan;
thus, they have no standing or power to seek any modification to
its terms.

Based in Atlanta, Georgia, Delta Air Lines Inc. (NYSE:DAL) --
http://www.delta.com/-- is the world's second-largest airline
in terms of passengers carried and the leading U.S. carrier
across the Atlantic, offering daily flights to 328 destinations
in 56 countries on Delta, Song, Delta Shuttle, the Delta
Connection carriers and its worldwide partners.  Delta flies to
Argentina, Australia and the United Kingdom, among others.  The
company and 18 affiliates filed for chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923).
Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents
the Debtors in their restructuring efforts.  Timothy R. Coleman
at The Blackstone Group L.P. provides the Debtors with financial
advice.  Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at
Akin Gump Strauss Hauer & Feld LLP, provide the Official
Committee of Unsecured Creditors with legal advice.  John
McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James
S. Feltman at Mesirow Financial Consulting, LLC, serve as the
Committee's financial advisors.  As of June 30, 2005, the
company's balance sheet showed US$21.5 billion in assets and
US$28.5 billion in liabilities.

The Debtors filed a chapter 11 plan of reorganization and
disclosure statement explaining that plan on Dec. 19, 2007.
On Jan 19, 2007, they filed revisions to the plan and disclosure
statement, and submitted further revisions to the plan on
Feb. 2, 2007.  On Feb. 7, 2007, the Court approved the Debtors'
disclosure statement.  In April 2007, the Court confirmed the
Debtors' plan.  (Delta Bankruptcy News, Issue No. 78; Bankruptcy
Creditors' Service Inc.; http://bankrupt.com/newsstand/or
215/945-7000)

                        *     *     *

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

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


FAYLUP SA: Proofs of Claim Verification Is Until Nov. 14
--------------------------------------------------------
Ricardo Lisio, the court-appointed trustee for Faylup SA's
bankruptcy proceeding, verifies creditors' proofs of claim until
Nov. 14, 2007.

Mr. Lisio will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 11 in Buenos Aires, with the assistance of Clerk
No. 21, 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 Faylup 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 Faylup's accounting
and banking records will be submitted in court.

La Nacion didn't state the reports submission deadlines.

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

The debtor can be reached at:

       Faylup SA
       Avenida Francisco Beiro 4477
       Buenos Aires, Argentina

The trustee can be reached at:

       Ricardo Lisio
       Viamonte 1592
       Buenos Aires, Argentina


FIAT SPA: Quells Rumors on Joint Bid for Jaguar & Land Rover
------------------------------------------------------------
Fiat S.p.A. chairman Luca Cordero di Montezemolo denied reports
that the company is interested in taking a minority stake in
Ford Motor Co.'s British brands, AFX News Ltd. reports.

"We are not interested," Mr. Montezemolo was quoted by AFX News
as saying.

In a report by Russel Hotten and Ben Harrington for the
Telegraph, Fiat is said to be in talks with India's Tata Motors
for a joint bid for Jaguar and Land Rover.

Unnamed sources told the Telegraph that Tata and Fiat were
expected to have finalized any plans for a joint venture by mid-
October, where the second-round bids are due.

Analysts said there was strategic logic behind Fiat and Tata co-
operating on a bid for the two U.K. brands.  Motor industry
experts at Mediobanca believed that Tata could get valuable
synergies and technology from Land Rover, but Jaguar could be of
less importance to Tata, the Telegraph relates.

Fiat understands luxury brands and may see more potential for
Jaguar, Telegraph added.

                         About Fiat SpA

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

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

                          *     *     *

As reported on Aug. 24, 2007, Moody's Investors Service upgraded
to Ba1 from Ba2 Fiat SpA's Corporate Family Rating, and the
group's other long-term senior unsecured ratings.

At the same time, the positive outlook on all long-term ratings
was maintained.  The short term Not Prime rating remains
unchanged.

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

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


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

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

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

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

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

The debtor can be reached at:

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

The trustee can be reached at:

          Hector Julio Spagnuolo
          Tucuman 1452
          Buenos Aires, Argentina


LA DOLCE: Proofs of Claim Verification Deadline Is Sept. 26
-----------------------------------------------------------
Estudio Mendizabal, Guerrero, Machado, the court-appointed
trustee for La Dolce SRL's reorganization proceeding, verifies
creditors' proofs of claim until Sept. 26, 2007.

Estudio Mendizabal will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 21 in Buenos Aires, with the assistance of Clerk
No. 41, 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 La Dolce 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 La Dolce's accounting
and banking records will be submitted in court.

La Nacion didn't state the reports submission deadlines.

The informative assembly will be held on Sept. 26, 2008.
Creditors will vote to ratify the completed settlement plan
during the assembly.

The debtor can be reached at:

         La Dolce SRL
         Avenida Presidente Roque Saenz Pena 893
         Buenos Aires, Argentina

The trustee can be reached at:

         Estudio Mendizabal, Guerrero, Machado
         Peru 79
         Buenos Aires, Argentina


LITERARIA JURIDICA: Claims Verification Deadline Is Nov. 16
-----------------------------------------------------------
Luis Hugo Di Cesare, the court-appointed trustee for Literaria
Juridica SRL's bankruptcy proceeding, verifies creditors' proofs
of claim until Nov. 16, 2007.

Mr. Di Cesare will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 23 in Buenos Aires, with the assistance of Clerk
No. 45, 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 Literaria Juridica 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 Literaria Juridica's
accounting and banking records will be submitted in court.

La Nacion didn't state the reports submission deadlines.

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

The debtor can be reached at:

       Literaria Juridica SRL
       Talcahuano 481
       Buenos Aires, Argentina

The trustee can be reached at:

       Luis Hugo Di Cesare
       Viamonte 1336
       Buenos Aires, Argentina


MELICER SA: Proofs of Claim Verification Deadline Is Sept. 12
-------------------------------------------------------------
Norberto Alvarez, the court-appointed trustee for Melicer SA's
bankruptcy proceeding, verifies creditors' proofs of claim on
Sept. 12, 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. 19, 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 Melicer 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 Melicer'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 Melicer's assets
under court supervision and will take part in their disposal to
the extent established by law.

The debtor can be reached at:

         Melicer SA
         Avenida La Plata 1112
         Buenos Aires, Argentina

The trustee can be reached at:

         Norberto Alvarez
         R. Pena 189
         Buenos Aires, Argentina


TELECOM ARGENTINA: Telefonica Must Present More Documentation
-------------------------------------------------------------
Argentine antitrust agency Comision Nacional de Defensa de la
Competencia has asked Spanish telecommunications firm Telefonica
for additional documentation on its acquisition of a controlling
stake in European operator Telecom Italia, Telecom Argentina's
controller, news daily Infobae reports.

As reported in the Troubled Company Reporter-Latin America on
Sept. 11, 2007, Comision Nacional is studying whether Telefonica
could influence decision in Telecom Argentina after purchasing
a stake in the company's controlling shareholder Telecom Italia.
A consortium of Italian companies and Telefonica reached an
accord on April 28, 2007, to indirectly acquire a 23.6%
controlling stake in European operator Telecom Italia.
Telecom Italia owns 50% of Sofora, Telecom Argentina's
controller.  Local investment group Grupo Werthein, Telecom
Argentina's second biggest shareholder, claimed that Telefonica
would eventually have an impact on Telecom Argentina.
Argentina's former communications minister Henoch Aguiar said
that Telefonica wouldn't be able to obtain control of Telecom
Argentina under the telecom legislation.  Telecom Argentina had
also assured that Telefonica wouldn't be able to influence its
board's decisions.

Business News Americas relates that Comision Nacional wants the
documentation to help it make decision on the matter.

A Telefonica executive, together with the legal representative
of the firm's unit Telefonica de Argentina, explained to
Comision Nacional on Sept. 7, 2007, the implications of its
acquisition on Telecom Italia, Infobae states.

                     About Telefonica

Telefonica, S.A., together with its subsidiaries and investees
(Telefonica Group), operates mainly in the telecommunications,
media and entertainment industries.  The Telefonica Group is
also involved in the media and contact center activities through
investments in Telefonica de Contenidos and Atento.  The company
operates through three segments: Telefonica Spain, Telefonica
Europe and Telefonica Latin America.  Telefonica Spain oversees
the wireline and wireless telephony, broadband and data
businesses in Spain.  Telefonica Latin America oversees the same
businesses in Latin America.  Telefonica Europe oversees the
wireline, wireless, broadband and data businesses in the United
Kingdom, Germany, the Isle of Man, Ireland, the Czech Republic
and the Slovak Republic.

               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: Parent Must Present More Documentation
---------------------------------------------------------------
Argentine antitrust agency Comision Nacional de Defensa de la
Competencia has asked Spanish telecommunications firm
Telefonica, Telefonica de Argentina's parent firm, for
additional documentation on its acquisition of a controlling
stake in European operator Telecom Italia, Telecom Argentina's
controller, news daily Infobae reports.

As reported in the Troubled Company Reporter-Latin America on
Sept. 11, 2007, Comision Nacional is studying whether Telefonica
could influence decision in Telecom Argentina after purchasing
a stake in the company's controlling shareholder Telecom Italia.
A consortium of Italian companies and Telefonica reached an
accord on April 28, 2007, to indirectly acquire a 23.6%
controlling stake in European operator Telecom Italia.
Telecom Italia owns 50% of Sofora, Telecom Argentina's
controller.  Local investment group Grupo Werthein, Telecom
Argentina's second biggest shareholder, claimed that Telefonica
would eventually have an impact on Telecom Argentina.
Argentina's former communications minister Henoch Aguiar said
that Telefonica wouldn't be able to obtain control of Telecom
Argentina under the telecom legislation.  Telecom Argentina had
also assured that Telefonica wouldn't be able to influence its
board's decisions.

Business News Americas relates that Comision Nacional wants the
documentation to help it make decision on the matter.

A Telefonica executive, together with the legal representative
of the firm's unit Telefonica de Argentina, explained to
Comision Nacional on Sept. 7, 2007, the implications of its
acquisition on Telecom Italia, Infobae 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

Telefonica, S.A., together with its subsidiaries and investees
(Telefonica Group), operates mainly in the telecommunications,
media and entertainment industries.  The Telefonica Group is
also involved in the media and contact center activities through
investments in Telefonica de Contenidos and Atento.  The company
operates through three segments: Telefonica Spain, Telefonica
Europe and Telefonica Latin America.  Telefonica Spain oversees
the wireline and wireless telephony, broadband and data
businesses in Spain.  Telefonica Latin America oversees the same
businesses in Latin America.  Telefonica Europe oversees the
wireline, wireless, broadband and data businesses in the United
Kingdom, Germany, the Isle of Man, Ireland, the Czech Republic
and the Slovak Republic.

               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.


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

Mr. Herrero will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 20 in Buenos Aires, with the assistance of Clerk
No. 40, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections
and challenges that will be raised by Textil Uno and its
creditors.

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

A general report that contains an audit of Textil Uno's
accounting and banking records will be submitted in court.

La Nacion didn't state the reports submission deadlines.

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

The debtor can be reached at:

          Textil Uno SRL
          Padre Montes Carballo 1626
          Buenos Aires, Argentina

The trustee can be reached at:

          Miguel Pellerero Herrero
          H. Yrigoyen 1349
          Buenos Aires, Argentina




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


BANK OF BARODA: Looking for Partner to Revive Card Division
-----------------------------------------------------------
Bank of Baroda is scouting for a strategic partner to
resuscitate its loss-making credit card business, the Press
Trust of India reports.  As a second option, BoB is eying the
merger of the card unit with itself.

"We will take a call to either merge the card division with the
bank or take a strategic partner who has domain knowledge in the
credit card business," PTI quoted BoB Chairman And Managing
Director A. K. Khandelwal as saying.  No final decision,
however, had been taken and it would take some more time, Mr.
Khandelwal added.

According to PTI, the bank's card division booked a loss during
the fiscal year.

Headquartered in Vadodara, India, Bank of Baroda --
http://www.bankofbaroda.com/-- is a provider of banking
services in India.  The company's solutions includes personal
banking, which includes deposits, retail loans, credit cards,
debit card, lockers and other services; business banking, which
comprises working capital, term finance and traders loans;
corporate banking, which includes cash management and
remittances, multi-city cheques, appraisals and merchant
banking; international business, which includes import finance,
international treasury, export finance, correspondent banking
and other solutions; treasury banking, which comprises domestic
operations and forex operations, and rural banking, which
includes retail loan, small businesses and small scale
industries.

Bank of Baroda has branches in the Bahamas, Belgium, the Fiji
Islands, Mauritius, Republic of South Africa, Seychelles,
Singapore, Sultanate of Oman, United Arab Emirates, the United
Kingdom, and the United States of America.

                          *     *     *

As reported by the Troubled Company Reporter-Asia Pacific on
July 11, 2007, Standard & Poor's assigned its 'BB' issue rating
to Bank of Baroda's US$300 million upper Tier-II subordinated
notes due in 2022.

Fitch Ratings, on May 9, 2007, assigned 'BB' ratings to Bank of
Baroda's proposed unsecured subordinated Upper Tier 2 notes
(expected size: USD250 million plus greenshoe option), as well
as the hybrid Tier 1 debt to be issued under its USD1.5 billion
medium-term notes programme. The agency also affirmed the bank's
Individual Rating of 'C/D'.  Fitch said the outlook on all
ratings is stable.




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


ALEA GROUP: Reports Interim Results; Updates Run-Off Activities
---------------------------------------------------------------
Alea Group Holdings (Bermuda) Ltd. reported its interim results
for the six months ended June 30, 2007.  The company also
provides an update on run-off activities.

Financial Highlights:

   * Insurance contracts liabilities decreased by 12.5% from
     US$1,941.5 million at Dec. 31, 2006 to US$1,698.1 million
     at June 30, 2007 (June 30, 2006: US$2,451.7 million).

   * Investment income of US$38.9 million (June 30, 2006:
     US$49.2 million) reflecting a decrease in invested assets
     as claims, commutations and operating expenses are paid.

   * Other operating expenses were US$27.2 million
     (June 30, 2006: US$42.5 million).

   * Operating income of US$3.3 million (June 30, 2006: US$1.6
     million).

   * Loss after tax was US$11.0 million (June 30, 2006: loss
     after tax of US$10.7 million), which on a per share basis
     was US$0.06 (June 30, 2006: loss per share of US$0.06).

   * Adverse reserve development, net of reinsurance excluding
     the impact of commutations and discount in the six months
     ended June 30, 2007, of US$15.9 million (June 30, 2006:
     adverse reserve development of US$14.7 million, net of
     reinsurance excluding the impact of commutations and
     discount).

   * Net asset value of US$2.71 per share (Dec. 31, 2006:
     US$2.79 per share; June 30, 2006: US$2.57 per share)
     including impact of cumulative unrealised losses.

   * Subsequent to June 30, 2007, the Group refinanced its
     outstanding bank loans and made an optional prepayment
     leaving US$30 million outstanding as at July 18, 2007,
     maturing in July of 2009.

Operational Highlights:

    * Headcount reduced to 119 as at June 30, 2007, down from
      137 as at Dec. 31, 2006.

         Directorate Changes and Corporate Actions

Several events in the first half of 2007 resulted in a
significant change in both the ownership and the Board of
Directors of Alea Group Holdings (Bermuda) Ltd.  Following the
acquisition by FIN Acquisition Limited of approximately 67% of
the company's shares in issue, on July 6, 2007, the Group
announced the resignation of each of John Reeve, Timothy Faries,
James Fisher, Todd Fisher, Perry Golkin, R. Glenn Hilliard, and
Scott Nuttall as directors of the Company effective
July 5, 2007.  The Group further announced the appointment of
Robert Kauffman, Randal Nardone and Greg Share as non-executive
directors of the Company with simultaneous effect.  Mr Kauffman
was also appointed Chairman of the Board.

On July 10, 2007, the Group announced the conversion of the
currency in which the Company's shares trade on the London Stock
Exchange from pounds sterling to US dollars.  On July 18, 2007,
the Group announced it had posted a circular to its shareholders
relating to the conversion of the Company's listing on the
Official List of the UK Listing Authority from a primary listing
to a secondary listing, with an effective date of Aug. 16, 2007.

On July 23, 2007, FIN Acquisition Limited announced it had
closed to further acceptances on July 20, 2007, its recommended
cash offer to acquire the shares of Alea Group Holdings
(Bermuda) Ltd. As of July 20, 2007, FIN Acquisition Limited had
received valid acceptances of its offer in respect of a total of
approximately 72 percent of the Company's shares in issue.

                          Dividend

The company has not proposed an interim dividend for 2007.

Comments of Mark Cloutier, Group Chief Executive:

"The first half of 2007 has been yet another period of
significant change and challenge for Alea.  While we have
continued to focus on the orderly run-off of the Group's balance
sheet, we also completed a major transaction resulting in a new
majority shareholder, FIN Acquisition Limited, taking a
significant interest in the Group.  We welcome our new
shareholder and the participation and support of our new
Directors and we thank the departing Board members for their
contributions over the past rather difficult period."

"Our result for the first half of the year while representing an
improvement over the same period last year (loss before tax of
US$10.3 million versus a loss before tax of US$14.4 million in
the first half of 2006) is nonetheless disappointing relative to
our expectations.  While it is disappointing to have made a
loss, we have however, continued to make good progress in our
efforts to preserve the Group's capital base, reduce volatility
in our balance sheet and meet the terms of all our debt
obligations.  Insurance contract liabilities reduced a further
12.5% (US$243.4 million) in the period, representing further
deleveraging of our assets.  During the interim period we repaid
US$75.0 million of our US$200.0 million bank facility.
Subsequent to the interim period, we refinanced the existing
facility and together with optional prepayments have reduced
total senior debt outstanding to US$30.0 million."

"As we move through the second half of 2007 and into 2008, we
will remain keenly focused on reducing expenses, further
reducing insurance contract liabilities, preserving our capital
and assets, pursuing commutations that make economic sense for
the Group, and the development of our plans for the future of
the Group.  We continue to explore various options to realise or
enhance the value of Alea which may include acquisitions,
divestitures or recommencing underwriting activities in certain
select segments of the industry."

Alea Group Holdings (Bermuda) Ltd. is a global provider of
insurance and reinsurance products and services, Alea Group
faced a tough year in 2005.  With catastrophes such as
Hurricanes Katrina and Rita in the US and flooding in Europe
greatly affecting the company, Alea decided to run off its
property/casualty business.  It has already sold or runoff some
of its lines, including its European property/casualty treaty
portfolio and Alea Alternative Risk. Headquartered in Bermuda,
the company has additional offices in Australia, Europe, and
North America.  Investment firm Kohlberg Kravis Roberts & Co.
holds a nearly 40% stake in the company.  Fortress Investment
Group has announced it intends to buy Alea for USUS$320 million.

                        *     *     *

On Feb. 1, 2006, A.M. Best Co. downgraded the financial strength
rating to B from B++ and the issuer credit rating to "bb" from
"bbb" of the insurance and reinsurance operating subsidiaries of
Alea Group Holdings (Bermuda) Ltd. (collectively referred to as
Alea Group or Alea).

Subsequently, A.M. Best withdrew all ratings and assigned an
NR-4 (Company Request) to the Alea Group companies.

The downgrade followed significant deterioration in the
company's consolidated risk-adjusted capitalization as a result
of worse than anticipated performance in 2005 due to run-off
charges, catastrophe losses and further adverse reserve
development.  A.M. Best believed that the company is likely to
continue to be affected by high expenses related to the
transition of Alea Group into run off and the continuing
possibility of adverse reserve development.


ENDURANCE ESPECIALTY: Inks Equity Deal with Deutsche Bank Unit
--------------------------------------------------------------
Endurance Specialty Holdings Ltd. has entered into a variable
equity forward sale agreement under which it is entitled to sell
its ordinary shares to an affiliate of Deutsche Bank Securities
Inc., referred to as the "forward counterparty", for proceeds to
the company of approximately US$150 million.

Michael J. McGuire, Chief Financial Officer of the Company,
said, "The variable delivery forward is an important enhancement
to our capital structure and provides us with a committed source
of equity capital over the next three years.  This transaction
provides us with excellent financial flexibility, allows us to
retain significant potential upside on our share price and
enhances our ability to actively manage our capital."

The forward sale agreement settles beginning on July 15, 2010.
If the company elects full physical settlement of the forward
sale agreement, the Company will deliver to the forward
counterparty a number of ordinary shares based on the average
market price of the ordinary shares at that time, subject to the
specified minimum and maximum number of shares.  At higher stock
prices the company will issue a smaller number of shares and at
lower stock prices the company will issue a larger number of
shares.  This variability in number of shares delivered to the
forward counterparty provides the company with the right to
retain certain upside in all of the shares subject to the
transaction.  In lieu of issuing ordinary shares in full
physical settlement of the forward sale agreement at maturity,
the company may elect to net share settle or cash settle the
forward sale agreement.

Endurance is not currently issuing any ordinary shares in this
variable delivery forward transaction.  However, in order to
hedge its position under the forward sale agreement, the forward
counterparty, through its affiliate, Deutsche Bank Securities
Inc., acting as sole book-runner of the offering, is initially
selling the Company's ordinary shares in a public offering, and
will sell additional shares in the future from time to time in
connection with the forward sale agreement.  These offerings
will be made under the company's currently effective shelf
registration statement. The forward counterparty has advised the
company that it intends to borrow the shares to be sold in this
offering from third party share lenders.

Based in Pembroke, Bermuda, Endurance Specialty Holdings Ltd.
(NYSE: ENH) -- http://www.endurance.bm/-- is a provider of
property and casualty insurance and reinsurance.  Through its
operating subsidiaries, Endurance currently writes property per
risk treaty reinsurance, property catastrophe reinsurance,
casualty treaty reinsurance, property individual risks, casualty
individual risks, and other specialty lines.

                        *     *     *

As reported in the Troubled Company Reporter on Dec. 15, 2006,
AM Best affirmed these debt ratings:

Endurance Specialty Holdings, Ltd.

   -- "bbb-" on US$250 million 7.0% senior unsecured notes,
      due 2034;

   -- "bbb-"on US$200 million 6.15% senior notes, due 2015; and

   -- "bb" on US$200 million Series A non-cumulative preferred
      shares

These indicative debt ratings have been affirmed for securities
available under the shelf registration:

   Endurance Specialty Holdings, Ltd.

   -- "bbb-" on senior unsecured;
   -- "bb+" on subordinated; and
   -- "bb" on preferred stock

   Endurance Holdings Capital Trust I Ltd.-(guaranteed by
   Endurance Specialty Holdings)

   -- "bb" on preferred securities

   Endurance Holdings Capital Trust II Ltd.-(guaranteed by
   Endurance Specialty Holdings)

   -- "bb" on preferred securities


SCOTTISH RE: Clearwater Closes US$555-Mil. Financing Transaction
----------------------------------------------------------------
Scottish Re Group Ltd. said Sept. 6 that its Clearwater Re Ltd.
closed a transaction that provides up to US$555 million of
Regulation Triple-X peak reserve financing for a minimum of 15
years.

Citibank NA and Calyon New York Branch have committed to
purchasing up to US$555 million of notes issued by Clearwater
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.

On June 30, 2007, Scottish Re reported total assets of US$13.6
billion and shareholder's equity of US$1.2 billion.

Moody's insurance financial strength ratings are opinions of the
ability of insurance companies to repay punctually senior
policyholder claims and obligations.




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


* BOLIVIA: Twelve Firms To Invest US$588 Million in Nation
----------------------------------------------------------
The Bolivian hydrocarbons ministry told Dow Jones Newswires that
12 oil and gas firms will invest US$588 million in the country
this year.

According to the ministry's statement, the companies presented
investment plans by the government's Aug. 20 deadline.  The
firms agreed to spend US$254 million on capital expenditures and
US$334 million on operating costs.

The ministry told Dow Jones that Petrolera Chaco SA will invest
US$147 million, the largest amount.  Meanwhile, two units of
Brazilian state-owned Petroleo Brasileiro agreed to invest
US$118 million.

Bolivian President Evo Morales nationalized Bolivia's
hydrocarbons sector in 2006.  Private firms had been hesitant to
enter into new contracts with the government, Dow Jones states.

                        *     *     *

Fitch Ratings assigned these ratings on Bolivia:

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




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


BANCO NACIONAL: Invests BRL12 Mil. on Cinematographic Production
----------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social is
launching the annual Public Selection Edict, 2007 version.
Funds of up to BRL12,000,000 will be invested in production
projects and in the finishing of Brazilian cinematographic
audiovisual works and feature-films, comprising fiction films,
animation films and documentaries, carried out by audiovisual
independent Brazilian producers.

In this year's edict, BNDES deemed advisable to match the
supporting ceiling to animation films (previously BRL1 million)
to that of fiction films (which amount is BRL1.5 million).  The
objective is to stimulate this segment, considered to offer a
significant growth potential in the Country.

Another category which had its supporting amount increased was
the finishing one, in the fiction and animation kinds.  The
increase corresponded to 50% of the amount forecast for the
production category, from BRL500,000 to BRL750,000.  Another
change was in documentaries, which in the 2007 version includes
the finishing category, with a maximum support of BRL250,000.

Only projects already approved by Agencia Nacional de Cinema
[ANCINE] [National Cinematography Agency] and that already have
a protocol of registration for issuance and distribution of
Certificados de Investimento Audiovisual [Audiovisual Investment
Certificates] at Comissao de Valores Mobiliarios [CVM]
[Brazilian Securities and Exchange Commission] may apply.

Upon application, the responsible producer must indicate in
which category the project shall be contesting (production of
finishing), in which kind (fiction, animation or documentary),
and the investment amount being requested.

Projects, which have already been supported in previous edicts
of BNDES System or producers and directors in default before
that same system shall not be accepted.

Since 1995, the [system] integrated by BNDES, Special Agency for
Industrial Financing -- FINAME and BNDES Participacoes S.A. --
BNDESPAR, sponsors audiovisual activities, having already
allocated over BRL93 million to cinematographic productions,
with a BRL12 million budget per year.  These funds result from
the application of the fiscal incentives foreseen in the
Audiovisual Law.

Besides the edict, BNDES support the cinematographic sector
through Funcines -- Funds regulated by CVM, destined to
investments in the audiovisual sector (cinema and TV), involving
all links of the chain, including infrastructure companies,
suppliers, distributors, exhibitors and producers.  Another
financing modality are the lines created specially to meet the
sector characteristics, through Programa de Apoio Cadeia
Produtiva do Audiovisual -- Procult [Program of Support to
Audiovisual Productive Chain].

The regularity and amounts already invested make BNDES one of
the leading players of the public policy for the development of
cinematography in the Country.  From 1995 to 2006, 284 films
were supported.

The investment request shall be submitted to BNDES by the
proposing producer responsible for the cinematographic project
before Ancine, within the deadline and as provided for in the
selection edict.  The documentation required for project
submission and all edict rules are available at BNDES portal.

                    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: Hires Independent Auditor to Appraise Brasiliana
----------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social SA, along
with The AES Corp., will hire an independent auditor to appraise
Brazilian power holding firm Brasiliana's value, Business News
Americas reports.

BNamericas relates that Banco Nacional wants to sell its 49.99%
stake in Brasiliana, where AES holds 50.01%.

AES unit AES Eletropaulo said in a filing with the Sao Paulo
stock exchange Bovespa that Banco Nacional and AES had performed
separate appraisals of Brasiliana and agreed to hire an auditor
to conduct the third appraisal, as results of the first two
differed by over 10%.

According to BNamericas, the minimum price for Brasiliana will
be set by a weighted average of the three appraisals.

Brazilian power firms EDB, Cemig and CPFL Energia are
considering the acquisition of the 49.99% stake.  AES has first
refusal, BNamericas states.

                         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.

                    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.


COMPANHIA SANEAMENTO: Fitch Affirms BB Issuer Default Ratings
-------------------------------------------------------------
Fitch Ratings has affirmed the 'BB' Local Currency and Foreign
Currency Issuer Default Ratings and the Long-Term National Scale
Rating 'A+(bra)' of Companhia de Saneamento Basico do Estado de
Sao Paulo.  In addition, Fitch has affirmed the 'BB' Long-Term
International Rating for US$140 million in notes issued by the
company, as well as the 'A+(bra)' on National Scale for its
sixth debenture issuance.  The Rating Outlook is Stable.

The ratings reflect Sabesp's strong operational cash flow
generation, its moderate leverage and the long average maturity
of its debt.  The ratings are also supported by the near
monopoly position it enjoys in its region, as well as the
economies of scale obtained as the largest water and waste water
company in the Americas in terms of number of customers.  Among
the limiting factors, the classifications incorporate the
company's challenges to establish contracts with all served
municipalities, or to suit the existing ones, in the conditions
requested by the recent law created for the water and waste
water sector.  The strong exposure of Sabesp's operational
performance and financial profile to hydrological conditions,
the currency exposure due to the part of debt in foreign
currency, although this risk has been reduced considerably, and
the risk of political interference in the company due to its
control belonging to Sao Paulo State were also considered.  The
current level of its reservoirs is satisfactory for the period
of the year, which gives low hydrological risk for the company
in the short term. In the last five years, the decisions taken
by the controller predominantly has been neutral to the
company's credit quality.

The new law for water and wastewater implemented in 2007 is an
important regulatory advance for the sector.  The first view is
that the sector will benefit from more clear and positive rules,
although the new law brings some uncertainty regarding the
signature of the concession contracts.  Under the new
regulations, Sabesp's challenge is to sign contracts with all
the municipalities it serves by the end of 2010 to comply with
the requisites established by the law.  There are concerns
regarding the continuity of Sabesp's operation in large cities
where the company currently serves.  Fitch considers that the
negotiations between Sabesp and the concession authorities are
not expected to occasion relevant losses in revenues and/or
significant increases in the company's costs and investments.

Sabesp's financial profile has benefited from its strong
operational cash generation.  The company has reported growing
operating income, with high margins, even during the more
volatile periods of the Brazilian economy.  On June 2007, the
total debt/EBITDA ratio was 2.3 times for the last 12 months,
compared with 2.5 in 2006 and 2.9 in 2005.  Interest coverage
also improved, rising to 4.5 for LTM ended June 2007.  Net
revenues grew at a moderate average annual rate of 10% from 2002
to 2006, with the same percentage growth seen in first half 2006
(1H06) and 1H07.  Greater revenue and control over its costs
have enabled Sabesp to report larger volumes of operational cash
generation.  EBITDA has strengthened over the years, continuing
to show margins above 40%.  For the LTM ended June 2007, net
revenues totaled BRL5.8 billion, with an EBITDA of BRL2.7
billion and an EBITDA margin of 46%.  Sabesp presented an
increment of 3.2% in the volume of water and sewage services for
1H07 and is expected to benefit in the second half of the year
from the average rate increase of 4.02% to be implemented in
September 2007.  The expectation is that the company remains in
the coming years with its total debt/EBITDA ratio below 3.0 and
preserves the history of positive free cash flows, even with the
change in the amount of investments to BRL5.9 billion from
BRL3.8 billion for the 2007-2010 period.  Part of the resources
to finance the investment program should come from new debts.

Sabesp continues to show improvement in its debt profile.  In
June 2007, the company reported a total debt of BRL6.1 billion
and BRL511 million in cash and financial applications, the
lowest total and net debt for the company in the past five
years.  The average maturity continues to be long, with the
short-term portion (BRL1.0 billion) representing 16% of the
total.  Although it still has some exchange risk, Sabesp has
reduced its exposure to currency mismatches.  In June 2007,
Sabesp reported the lowest amount of foreign currency debt for
the last five years (BRL1.3 billion).

Companhia de Saneamento Basico do Estado de Sao Paulo is one of
the largest water and sewage service providers in the world
based on the population served in 2005.  It operates water and
sewage systems in Sao Paulo, Brazil.


DELPHI CORP: Discloses Treatment of Claims Under Chapter 11 Plan
----------------------------------------------------------------
The joint plan of reorganization, filed Sept. 6, 2007, by Delphi
Corp. and its debtor-affiliates with the U.S. Bankruptcy Court
for the Southern District of New York provides for separate
classes for holders of claims against and interests in the
debtors.

A. Administrative and Priority Claims

As required by the Bankruptcy Code, administrative claims and
priority tax claims, which are entitled to full recovery under
the Plan, are not classified.

Description      Treatment Under Plan
-----------      --------------------

DIP Claims       DIP Claims consist of the DIP Facility Revolver
                 Claim in the approximate amount of
                 US$682,000,000, the DIP Facility First Priority
                 Term Claim in the approximate amount of
                 US$250,000,000, and the DIP Facility Second
                 Priority Term Claim in the approximate amount
                 of US$2,495,000,000.  Under the Plan the DIP
                 Claim will be paid on the Effective Date in
                 full in Cash.

                 Estimated Amount of Claims:  US$3,427,000,000

                 Percentage Recovery:  100%

Administrative
Claims           An administrative claim is a claim for payment
                 of an expense of a kind specified in Section
                 503(b) of the Bankruptcy Code and entitled to
                 priority pursuant to Section 507(a)(1),
                 including, but not limited to, the actual,
                 necessary costs and expenses, incurred on or
                 after the Petition Date, of preserving the
                 Estates and operating the business of the
                 Debtors, including wages, salaries, or
                 commissions for services rendered after the
                 commencement of the Chapter 11 Cases,
                 Professional Claims, and certain other Claims.
                 For illustrative purposes, the estimated
                 amounts of Administrative Claims include Cure
                 Claims.  Under the Plan and the procedures
                 Provided therein, Administrative Claims will be
                 paid in full in Cash in the ordinary course or
                 as otherwise agreed.

                 Estimated Amount of Claims: US$735,000,000 plus
                 other Administrative Claims in the ordinary
                 course of business

                 Percentage Recovery: 100%

Priority Tax
Claims           A priority tax claim is a claim for payment of
                 taxes by governmental units as specified in
                 Section 507(a)(  of the Bankruptcy Code.  Under
                 the Plan, Priority Tax Claims will be paid (1)
                 equal cash payments, including postpetition
                 interest, over a period not to exceed six years
                 after the assessment of the tax totaling the
                 aggregate amount of the claim, (2) other
                 treatment that is agreed between the Debtors
                 and the holder of the priority tax claim, or
                 (3) payment in full in Cash plus postpetition
                 interest.

                 Estimated Amount of Claims: US$20,000,000 to
                 US$73,000,000

                 Percentage Recovery: 100%

B. Principal prepetition Claims and Interests in the Plan

The Debtors' investment banker and financial advisor,
Rothschild, performed a valuation of the Reorganized Debtors and
the New Common Stock as a going concern based on information and
financial projections provided by the Debtors.  Rothschild
estimated the total enterprise value range of Reorganized Delphi
to be between US$11,400,000,000 and US$14,400,000,000 with a
midpoint of approximately US$12,900,000,000 as of Dec. 31, 2007.

As part of the Plan, and for the purpose of making distributions
to allow a par plus accrued at Plan value recovery, the Debtors,
Creditors' Committee, Equity Committee, GM, and Plan Investors,
negotiated an agreed deemed value of the reorganized debtors'
equity at US$45.00 per share.  The total enterprise value is
assumed to be US$12,800,000,000 for purposes of setting the
price of New Common Stock for the Discount Rights Offering and
for setting the initial conversion price of the new Series B
Senior Convertible Preferred Stock, par value US$0.01 per share,
of Reorganized Delphi.

For setting the initial conversion price of the new Series
A-1 Senior Convertible Preferred Stock of Reorganized Delphi,
par value US$0.01 per share, and the new Series A-2 Senior
Convertible Preferred Stock of Reorganized Delphi, par value
US$0.01 per share, the total enterprise value is assumed to be
US$11,750,000,000.

                      Classified Claims

Description      Treatment Under Plan
-----------      --------------------

Secured Claims   Secured Claims are claims, other than DIP
Lender
                 Claims (which are treated as Administrative
                 Claims), that are secured by liens on property
                 in which the Debtors have an interest.  Under
                 the Plan, the legal, equitable, and contractual
                 rights of each holder of a Secured Claim will
                 be, at the option of the Debtor, paid in full
                 or be unimpaired and reinstated (which means
                 that the claim holder's rights will be
                 unaltered by the Plan and that Delphi will cure
                 outstanding payment defaults, if any).

                 Estimated Amount of Claims: US$29,000,000 to
                 US$34,000,000

                 Estimated Percentage Recovery: 100%

Flow-Through
Claims           A Flow-Through Claim is a claim arising from
                 (1) an Ordinary Course Customer Obligation, (2)
                 an Environmental Obligation (excluding those
                 environmental obligations that were settled or
                 capped during the Chapter 11 Cases (to the
                 extent exceeding the capped amount)), (3) an
                 Employee-Related Obligation (including workers
                 compensation and unemployment compensation
                 claims) asserted by an hourly employee that is
                 not otherwise waived pursuant to the Union
                 Settlement Agreements, (4) any Employee-Related
                 Obligation asserted by a salaried,
                 non-executive employee who was employed by
                 Delphi as of the date of the commencement of
                 the hearing on the Disclosure Statement, (5)
                 any Employee-Related Obligation asserted by a
                 salaried executive employee who was employed by
                 Delphi as of the date of the commencement of
                 the hearing on the Disclosure Statement and has
                 entered into a new employment agreement as
                 described in Article 7.8 of the Plan, and (6)
                 litigation exposures and other liabilities
                 arising from litigation that are covered by
                 insurance, but only in the event that the party
                 asserting the litigation ultimately agrees to
                 limit its recovery to available insurance
                 proceeds, except that all Estate Causes of
                 Action and defenses to any Flow-Through Claim
                 will be fully preserved.  Flow-Through Claims
                 will be unimpaired by the Plan and will be
                 satisfied in the ordinary course of Delphi's
                 business (subject to the preservation and flow
                 through of all Estate rights, claims, and
                 defenses with respect to the Flow-Through
                 Claims).

                 Estimated Percentage Recovery: Unimpaired

General
Unsecured
Claims           General Unsecured Claims include claims arising
                 as a result of trade claims (other than GM's
                 claims, which are treated below), claims
                 arising from the Delphi's Senior Notes, TOPrS
                 Claims, and other general unsecured claims that
                 might result from, for example, the rejection
                 of executory contracts or unexpired leases.

                 Delphi cannot predict with certainty the total
                 amount of General Unsecured Claims that
                 ultimately may be allowed.  Under the Plan,
                 general unsecured creditors (other than TOPrS)
                 will receive cash in an amount equal to 20% of
                 the claim and the number of shares of New
                 Common Stock in Reorganized Delphi equal to 80%
                 of the claim, subject to certain rounding
                 provisions in the Plan.  In resolution of
                 intercreditor disputes regarding subordination,
                 TOPrS will receive a distribution of 100% New
                 Common Stock.

                 Funded Debt Claims of US$2,500,000,000 plus
                 other General Unsecured Claims of
                 US$1,700,000,000 or less, which amount is
                 inclusive of Cure Claims and the treatment
                 provided to Section 510(b) Note Claims, Section
                 510(b) Equity Claims, and Section 510(b) ERISA
                 Claims

                 Estimated Percentage Recovery: 100 %

GM Claims        Delphi and GM are party to two agreements that
                 resolve issues arising from Delphi's Separation
                 from GM and address matters in Delphi and GM's
                 ongoing relationship.  The Plan serves as a
                 motion to approve those agreements. Under the
                 Plan, for good and valuable consideration
                 provided by GM under the Delphi-GM Definitive
                 Documents, and in full settlement and
                 satisfaction of the GM Claims, GM will receive
                 all consideration set forth in the Delphi-GM
                 Definitive Documents, including, without
                 limitation,

                 (1) Cash in the amount of US$2,700,000,000 to
                     be paid on the Effective Date,

                 (2) retention of the GM Surviving Claims as
                     provided for in Section 4.03 of the
                     Settlement Agreement,

                 (3) the effectuation of the IRC Section 414(l)
                     assumption as provided for in Section 2.03
                     of the Settlement Agreement, and

                 (4) the releases as provided for
                     in Sections 3.01, 4.02, and 4.03 of the
                     Settlement Agreement.

                Amount of Allowed Claim: Agreed Compromise

                Estimated Percentage Recovery: Agreed Compromise

Section 510(b)
Note Claims      Section 510(b) Note Claims arise from the
                 securities actions consolidated in the multi-
                 district litigation pending in the United
                 States District Court for the Eastern District
                 of Michigan and include claims asserted by
                 current or former holders of the Senior Notes
                 or TOPrS for damages or rescission in
                 connection with the purchase or sale of those
                 securities.  Pursuant to the terms of the
                 Securities Settlement (which resolves the
                 claims and causes of action asserted by holders
                 of Section 510(b) Note Claims and Section
                 510(b) Equity Claims), holders of Section
                 510(b) Note Claims and Section 510(b) Equity
                 Claims will receive a claim valued at
                 US$204,000,000.  The Debtors will make a
                 distribution of Cash and New Common Stock, in
                 the same proportion as the distribution of Cash
                 and New Common Stock made to holders of General
                 Unsecured Claims, to fund a portion of the
                 Securities Settlement, which will be divided
                 between the Section 510(b) Note Claims and the
                 Section 510(b) Equity Claims according to the
                 plan of allocation approved by the MDL Court.
                 If any holder of a Section 510(b) Note Claim
                 opts out of the Securities Settlement, and that
                 holder's claim is ultimately allowed, then the
                 holder of the Allowed Section 510(b) Opt Out
                 Note Claim will receive a distribution, from
                 the Securities Settlement, of Cash and Stock
                 equal to the amount of the Allowed Section
                 510(b) Opt Out Note Claim in the same
                 proportion as the distribution of Cash and New
                 Common Stock made to holders of General
                 Unsecured Claims.

                 Estimated Recovery: Allocated share of
                 US$204,000,000

                 Estimated Percentage Recovery: Agreed
                                            Compromise

Intercompany
Claims           An Intercompany Claim is a claim by Delphi or
                 one or more of its affiliates against other
                 Delphi affiliates on account of various matters
                 incurred in the ordinary course of business.
                 Under the Plan, at the option of Delphi with
                 certain exceptions, Intercompany Claims will
                 either be reinstated and treated in the
                 ordinary course of business or eliminated,
                 except that Intercompany Claims among Debtors
                 that will be substantively consolidated as a
                 Debtor group will be eliminated.  The ultimate
                 disposition of Intercompany Claims will be
                 based upon business planning reasons of
                 Reorganized Delphi and will not affect
                 distributions to other creditors under the
                 Plan.

                 Estimated Amount of Claims:             N/A

                 Estimated Percentage Recovery:          N/A

Existing Common
Stock            Delphi's Existing Common Stock will be canceled
                 on the Effective Date.  Each Holder of Delphi's
                 Existing Common Stock will receive a pro rata
                 distribution of (1) 1,476,000 shares of New
                 Common Stock in Reorganized Delphi (at a
                 US$45.00 per share negotiated plan value), (2)
                 transferable Rights to purchase 45,600,000 of
                 the total 147,627,046 shares of New Common
                 Stock (to be reduced by the guaranteed minimum
                 of 10% of the Rights for the Plan Investors) in
                 Reorganized Delphi for US$1,750,000,000 in the
                 aggregate (exercise price US$38.56 per share),
                 (3) five-year warrants to purchase, for
                 US$45.00 per share, an additional 5% of the New
                 Common Stock of Reorganized Delphi, and (4)
                 non-Transferable Rights to purchase
                 approximately US$572,000,000 (in the aggregate)
                 of the New Common Stock of Reorganized Delphi
                 for a price of US$45.00 per share.

                 Estimated Recovery:  Agreed Compromise

Section 510(b)
Equity Claims    Section 510(b) equity claims arise from the
                 securities actions consolidated in MDL and
                 include claims by current or former holders of
                 Delphi's existing common stock for damages or
                 rescission in connection with the purchase or
                 sale of the common stock.  Pursuant to the
                 terms of the Securities Settlement (which
                 resolves the claims and causes of action
                 asserted by holders of Section 510(b) Note
                 Claims and Section 510(b) Equity Claims),
                 holders of Section 510(b) Note Claims and
                 Section 510(b) Equity Claims will receive a
                 claim valued at US$204 million.  The Debtors
                 will make a distribution of Cash and New
                 Common Stock, in the same proportion as the
                 distribution of Cash and New Common Stock made
                 to holders of General Unsecured Claims, to fund
                 a portion of the Securities Settlement, which
                 will be divided between the Section 510(b) Note
                 Claims and the Section 510(b) Equity Claims
                 according to the plan of allocation approved by
                 the MDL Court.  If any holder of a Section
                 510(b) Equity Claim opts out of the Securities
                 Settlement, and that holder's claim is
                 ultimately allowed, then the holder of the
                 Allowed Section 510(b) Opt Out Equity Claim
                 will receive a distribution, from the
                 Securities Settlement, of Cash and Stock equal
                 to the amount of the Allowed Section 510(b) Opt
                 Out Equity Claim in the same proportion as the
                 distribution of Cash and New Common Stock made
                 to holders of General Unsecured Claims.

                 Estimated Recovery: Allocated share of
                 US$204,000,000

                 Estimated Percentage Recovery: Agreed
                 Compromise

Section 510(b)
ERISA Claims     Section 510(b) ERISA claims arise from the
                 alleged failure of certain defendants to
                 exercise their fiduciary duties in
                 administering certain retirement plans'
                 investments in Delphi common stock.  The ERISA
                 based claims have been consolidated in the MDL.
                 Pursuant to the terms of the ERISA Settlement,
                 holders of Section 510(b) ERISA Claims will
                 receive a claim valued at US$24,500,000.  The
                 Debtors will make a distribution of Cash and
                 New Common Stock, in the same proportion as the
                 distribution of Cash and New Common Stock made
                 to holders of General Unsecured Claims, to fund
                 a portion of the ERISA Settlement, which will
                 be distributed According to the plan of
                 allocation approved by the MDL Court.

                 Estimated Recovery: Allocated share of
                 US$24,500,000

                 Estimated Percentage Recovery: Agreed
                 Compromise

Other Interests  Other Interests consist of all options,
                 warrants, call rights, puts, awards, or other
                 agreements to acquire existing Delphi common
                 stock.  Under the Plan, all Other Interests
                 will be cancelled and holders of Other
                 Interests will not receive a distribution under
                 the Plan on account of those Other Interests.

                 Percentage Recovery:  0%

Interests In
Affiliate
Debtors          Interests in affiliate debtors consists of any
                 other stock, equity security, or ownership
                 interest in any affiliate Debtor.  Under the
                 Plan, interests in affiliate debtors will not
                 be impaired or cancelled by the Plan.

                 Estimated Amount of Interests: N/A

                 Estimated Percentage Recovery: N/A

These classes of claims and interests are impaired under, and
are entitled to vote to accept or reject, the Plan:

   -- General Unsecured Claims,
   -- GM Claims,
   -- Section 510(b) Note Claims,
   -- Existing Common Stock,
   -- Section 510(b) Equity Claims, and
   -- Section 510(b) ERISA Claims.

Holders of interests or claims, which do not retain or receive
any property and are deemed to reject the Plan under Section
1126(g).  Accordingly, the Debtors will not send ballots or
solicitation packages to holders of those claims and interests.

Under Section 1126(f), the Unimpaired Creditors are conclusively
presumed to have accepted the Plan, and solicitation of votes
from these creditors is not required.

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.  (Delphi Bankruptcy News, Issue No. 83 Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000)


DELPHI CORP: Says Disclosure Statement Is Adequate
--------------------------------------------------
Delphi Corp. and its debtor-affiliates ask the U.S. Bankruptcy
Court for the Southern District of New York to approve the
disclosure statement to their Joint Plan of Reorganization,
filed Sept. 6, 2007.

John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher, in
Chicago, Illinois, contends the Disclosure Statement contains
adequate information within the meaning of Section 1125 of the
Bankruptcy Code.  He narrates that the Disclosure Statement is
both extensive and comprehensive and satisfies each of the
informational items outlined in In re Scioto Valley Mortgage
Co., 88 B.R. 168, 170-71 (Bankr. S.D. Ohio 1988); and In re
Ionosphere Clubs, Inc., 179 B.R. 24, 29 (S.D.N.Y. 1995).  The
Disclosure Statement contains descriptions and summaries of,
among other things:

     (i) the Plan,

    (ii) the Debtors' history and prepetition capital structure,

   (iii) certain events leading to the commencement of the
         Chapter 11 cases,

    (iv) the significant events during the Chapter 11 cases,

     (v) the claims asserted against the Debtors' estates,

    (vi) the new securities to be issued under the Plan,

   (vii) various risk factors affecting the Plan and the
         Debtors' restructuring,

  (viii) a liquidation analysis setting forth the estimated
         return that creditors would receive in a hypothetical
         Chapter 7 case,

    (ix) financial information and valuations relevant to
         creditors' determinations of whether to accept or
         reject the Plan,

     (x) certain securities law and tax law consequences of the
         Plan, and

    (xi) a disclaimer indicating that no statements or
         information concerning the Debtors and their assets and
         securities are authorized other than those set forth in
         the Disclosure Statement.

Section 1125(b) prohibits postpetition solicitation of a
reorganization plan unless the plan and "a written disclosure
statement approved, after notice and a hearing, by the court as
containing adequate information" are transmitted to those
persons whose votes are being solicited.

The Court will convene a hearing to consider the adequacy of the
Disclosure Statement on Oct. 3, 2007.  Objections to approval
of the Disclosure Statement are due Sept. 28, 2007.

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.  (Delphi Bankruptcy News, Issue No. 83 Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000)


EUTELSAT COMMS: Extends Distribution Agreement with Viasat
----------------------------------------------------------
Eutelsat Communications and ViaSat Inc. has announced at the IBC
exhibition in Amsterdam the expansion of the distribution
network for the Tooway(TM) satellite broadband service that was
first presented in Germany at the recent International Consumer
Electronics show in Berlin. Distribution agreements have been
signed which mark the extension of the service beyond Germany
into France, Spain and Bulgaria.

Tooway(TM) is a new-generation high-quality broadband service
designed for residential users, with equipment a fraction the
cost of existing enterprise-focused satellite services.  As a
new broadband alternative for homes with low-speed dial-up,
Tooway(TM) can at last change the price/performance paradigm for
consumer satellite Internet access in rural areas across Europe.

The three new distribution partners for Tooway(TM) all possess
solid knowledge of satellite technology and service delivery.
In France, Sat2Way, which specialises in fully satellite-based
broadband products forprofessional markets, will market the
service to consumers in regions beyond range of high-speed
Internet via ADSL and cable networks.  In Spain, Overon, which
is the market-leading company for satellite transmission and
contribution services, will host the Spanish Tooway(TM) hub and
distribute the service to ISPs in the region.  The new
distributor for Bulgaria is Bulsatcom, which already provides
digital pay-TV services in Bulgaria and has a strong market
position in the region in satellite-based video, and Internet
services.  Tooway(TM) is expected to be provided by each company
by the end of 2007.

Sat2Way, Overon and Bulsatcom join Internetagentur Schott and
Teles who are the first distribution partners and service
providers in Germany, and who are preparing to launch Tooway(TM)
by the end of this month.

Commenting on the new distribution partners, Arduino Patacchini,
Multimedia Director at Eutelsat and Chairman of Skylogic said:
"Following on from our first announcement of service providers
for Germany, we are delighted that Tooway(TM) will also soon be
available in France, Spain and Bulgaria.  As a ground-breaking
and affordable solution for broadband access for the many homes
beyond range of terrestrial broadband networks, we believe
Tooway(TM) can make a powerful contribution to resolving
Europe's digital divide".

Tooway(TM) will be offered via Ka-band capacity on Eutelsat's
HOT BIRD(TM) 6 satellite at 13 degrees East and will also be
available via Ku-band capacity on the EUROBIRD(TM) 3 satellite.
Three different service grades will be provided in Ka-band and
Ku-band, with the initial offer delivering maximum downlink
speeds of up to 2048 kbps and maximum uplink speeds of up to 384
kbps.  Consumer tariffs and hardware prices will be defined by
each service provider partnering in the distribution of the
service.

Tooway(TM) will be initiated for Internet access, with broadcast
TV reception also possible from Eutelsat's HOT BIRD(TM)
neighbourhood with additional equipment.  An extension to a real
satellite triple play service with IPTV and VoIP will be able to
be proposed by distributors.  In 2010, Eutelsat expects to
extend its Tooway(TM) service offering in partnership with
ViaSat by deploying a new, high-capacity dedicated Ka-band
satellite to 13 degrees East with multiple spotbeams across
Europe.  It is anticipated that the new satellite will enable
much higher speed services.  Its location at Eutelsat's prime
video neighbourhood also means that consumers will be able to
receive triple play services and digital TV reception with a
single dish, consolidating the HOT BIRD(TM) position as one of
the most important and powerful neighbourhoods in the global
satellite sector.

                       About Skylogic

Based in Turin, northwest Italy, Skylogic --
http://www.skylogic.com--operates one of the world's leading
satellite broadband IP platforms. Its operational centre,
SkyPark, is equipped to offer a complete range of broadband
services including content distribution, IP videostreaming,
business TV, maritime applications, teleconferencing, remote
control of installations, telemedicine, e-learning and Voice
over IP.  The teleport is connected by fibre to the Internet
exchange point in Turin and uses capacity on satellites in
Eutelsat's fleet in order to serve users in Europe, Asia, the
Americas and Africa. Skylogic's customers include businesses,
multinationals, government agencies and aid organisations.

                        About ViaSat

ViaSat -- http://www.viasat.com-- produces innovative satellite
and other digital communication products that enable fast,
secure, and efficient communications to any location.  The
company provides networking products and managed network
services for enterprise IP applications; is a key supplier of
network-centric military communications and encryption
technologies to the U.S. government; and is the primary
technology partner for gateway and customer-premises equipment
for consumer and mobile satellite broadband services.  The
company owns five subsidiaries: US Monolithics, Efficient
Channel Coding, Enerdyne Technologies, Intelligent Compression
Technologies and JAST.  These companies design and produce
complementary products such as monolithic microwave integrated
circuits, DVB-S2 satellite communication components, video data
link systems, data acceleration and compression products, and
mobile satellite antenna systems.  ViaSat has locations in
Carlsbad, CA, and Duluth, GA, along with its Comsat Laboratories
division in Germantown, MD.  Additional field offices are
located in Boston, MA, Baltimore, MD, Washington DC, Australia,
China, India, Italy, and Spain.

                       About Eutelsat

Headquartered in Paris, France, Eutelsat Communications --
http://www.eutelsat.com/-- is the holding company of Eutelsat
S.A.  The Group is a leading satellite operator with capacity
commercialized on 23 satellites providing coverage over the
entire European continent, as well as the Middle East, Africa,
India and significant parts of Asia and the Americas.  One of
its worldwide operations is located in Brazil.  The Group is one
of the world's three leading satellite operators in terms of
revenues.  Its satellites are used for broadcasting nearly 1,800
TV and 900 radio stations to more than 120 million cable and
satellite homes.  The Group also provides TV contribution
services, corporate networks, mobile positioning and
communications, Internet backbone connectivity and broadband
access for terrestrial, maritime and inflight applications.

                        *     *     *

In April 2007, in connection with the implementation of its new
Probability-of-Default and Loss-Given-Default rating methodology
for the corporate families in the Telecommunications, Media and
Technology sectors, Moody's Investors Service confirmed its Ba2
Corporate Family Rating for Eutelsat Communications S.A.

Moody's also assigned a Ba3 probability of default rating to the
company.

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

                                                Projected
                            Debt       LGD      Loss-Given
   Debt Issue               Rating     Rating   Default
   ----------               -------    ------  ----------
   Senior Unsecured
   Bank Credit Facility      Ba3        LGD4       55%


FORD MOTOR: Offers Up to US$1,000 Bonus in "Swap Your Ride" Deal
----------------------------------------------------------------
As Ford Motor Company continues to earn recognition from third-
party experts for design, safety, quality and innovation, the
company is inviting consumers to "swap their ride" and get
behind the wheel of one of its award-winning Blue Oval products.

Ford has lauched "Swap Your Ride," an integrated marketing
campaign that chronicles the experiences of competitive-make
vehicle owners from New York, Dallas, Miami and Los Angeles as
they evaluate Ford cars, trucks, SUVs and CUVs.  The ads, which
take their inspiration from the reality TV phenomenon, feature
candid feedback from people who thought they were test-driving
vehicles for market research.

The campaign is backed by an offer of up to US$1,000 "Swap Bonus
Cash" through Oct. 1, 2007 on most 2007 and 2008 model year
vehicles in addition to all existing retail and lease offers.

"When consumers experience a new Ford vehicle for themselves --
especially when they haven't driven one of our products lately -
- it's almost always an eye-opening experience," said Barry
Engle, general manager, Ford Marketing.  "In 'Swap Your Ride,'
real people tell this story in their own words."

"Swap Your Ride" participants were asked before and after their
test-drive experience whether they would be open to purchasing
or leasing a Ford vehicle in the future.  The results: purchase
consideration following consumers' week-long product evaluation
doubled to nearly 80 percent.

                 Integrated Advertising Campaign

The "Swap Your Ride" television commercials, 28 in all, have
spots scheduled on the major broadcast and cable networks during
such highly rated shows as Desperate Housewives, CSI, Extreme
Home Makeover and Bones.  The campaign also includes Spanish-
language ads.

Print executions will appear nationally in USA Today and in
major newspapers in 25 top markets beginning on Sept. 7, 2007.
Radio spots will air nationally, regionally and locally
beginning this week.  Digital advertising for "Swap Your Ride"
also will appear on a variety of sites including Google, Yahoo!,
MSN and other automotive research sites.  In addition,
fordchallenge.com will feature additional behind-the-scenes
footage compiled during the clinics.

                      Program Details

Ford's "Swap Your Ride" campaign includes retail and lease
offers which run nationwide through Oct. 1, 2007:

    -- Up to US$1,000 "Swap Bonus Cash" on most 2007 and 2008
       model year Ford vehicles in addition to all existing
       retail and lease offers.

    -- The "Swap Bonus Cash" offer for most eligible vehicles is
       US$1,000; the 2008 Ford Fusion and Mustang are eligible
       for US$500 "Swap Bonus Cash".

    -- 2007 F-150 models will offer US$1,000 "Swap Bonus Cash"
       plus zero percent financing for 60 months.

    -- 2007 Explorer, SportTrac and Ranger will offer stand-
       alone zero percent financing for 60 months (or 1.9
       percent financing plus US$1,000 "Swap Bonus Cash").

    -- Certain 2007 and 2008 models, including Shelby and
       Harley-Davidson models, are not eligible for "Swap Bonus
       Cash".

                    About Ford Motor Co.

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

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

                        *     *     *

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

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

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

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


GENERAL MOTORS: Crossover Units Lure Drivers from Asian Cars
------------------------------------------------------------
General Motors Corp., which is struggling to stem losses and
increase lagging U.S. sales, has found a bright spot in the
three large crossover vehicles it launched in the past year,
namely Buick Enclave, GMC Acadia and Saturn Outlook, Neal
Boudette writes for the Wall Street Journal.

The units, which are all top-sellers, have achieved what other
Detroit vehicles are having a tough time doing -- enticing
drivers away from imported brands, particulary Asian-brand cars.
Due to the trio's brisk sales, a GM plant in Lansing, Michigan,
is now running at full capacity, Mr. Boudette of WSJ states.

According to the report, the trio each has three rows of seats
and looks like big sport-utility vehicles, but they are lighter,
have a smoother ride and get better gas mileage than SUVs.

GM, Ford Motor Co. and Chrysler LLC remain the dominant
manufacturers of trucks, but they are all experiencing a
continuing slump in pickup and SUV sales in the wake of high
gasoline prices and changing consumer tastes, WSJ relates.  The
three auto makers are each undergoing restructuring efforts to
turn around their North American operations and stem their
decades-long slide in market share.

GM doesn't disclose its vehicles' profit margins, but other
measures indicate the three crossovers are performing well
financially, such as the recent addition of a third shift at the
Michigan plant producing the vehicles, at a time when GM is
trimming production of its full-size SUVs and pickup trucks, Mr.
Boudette writes for WSJ.

Concurrently, a Chevrolet version is in the works, and could
skim buyers from the Buick, GMC and Saturn models.  The Chevy
model will be built in a separate plant in Spring Hill,
Tennessee, the report says.

                     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: Inks MOU with Isuzu for Commercial Car Deal
-----------------------------------------------------------
General Motors Corp. and Isuzu Motors Limited have signed a
memorandum of understanding to reinforce their strategic
partnership and expand the sales of commercial vehicles in three
South American countries in the Andean region.

The agreement includes a full-scale feasibility study to assess
the establishment of a joint venture that will specialize in the
sales of Isuzu commercial vehicles badged as Chevrolet in
Colombia, Venezuela and Ecuador.

"GM and Isuzu have a long-standing commercial relationship and,
over the years, we have steadily increased sales and market
share of Isuzu commercial vehicles built by GM's manufacturing
operations in South America under the Chevrolet brand and
distribution channel.  Given the expected growth in this region,
we are very pleased to expand our relationship with Isuzu," said
Pablo Ross, president and managing director of GM's Andean
Region.

In 2006, GM sold 14,580 Isuzu trucks, capturing 24.7% of the
Andean commercial vehicle market that has more than doubled
since 2003.  GM and Isuzu plan to significantly increase sales
and market share of commercial vehicles in the region by
reinforcing sales functions and launching the new Isuzu N-series
and F-series trucks.

"The MOU and our agreement this time is in line with Isuzu's
efforts addressed in the mid-term business plan to expand
commercial vehicles sales in overseas markets.  Our reinforced
collaboration with GM will enable us to set a solid foundation
to aggressively promote the sales expansion and market share
increase of Isuzu's new N-series and F-series trucks," said
Yoshifumi Komura, executive officer in charge of International
Sales of Isuzu Motors Limited.

The feasibility study is expected to be completed by the end of
2007.

                     About Isuzu Motors

Headquartered in Tokyo, Japan, Isuzu Motors Limited --
http://www.isuzu.co.jp/-- is engaged in the manufacture and
sale of automobile, automobile parts, as well as industrial
engines.  The company carries products such as light commercial
vehicles (LCVs) and commercial vehicles, which include large-
size trucks and buses, small-size trucks and pickup trucks,
among others.  It also manufactures and sells engines and
components.  Through its subsidiaries, the company is also
engaged in the provision of logistics services and other
services.  The company has offices in Japan, the United States,
Mexico, Belgium, and Thailand, among others.

                    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.


IWT TESORO: Case Summary & 30 Largest Unsecured Creditors
----------------------------------------------------------
Lead Debtor: I.W.T. Tesoro Corporation
             fka Ponca Acquisition Company
             70 East 55th Street
             New York, NY 10022

Bankruptcy Case No.: 07-12841

Debtor-affiliates filing separate Chapter 11 petitions:

        Entity                                     Case No.
        ------                                     --------
        I.W.T. Tesoro Corporation                  07-12841
        International Wholesale Tile, Inc.         07-12845
        American Gres, Inc.                        07-12848

Type of business: The Debtors are wholesale distributors of
                  building materials, specifically hard floor
                  and wall coverings.  They do not sell directly
                  to any end user.  Their products consist of
                  ceramic, porcelain and natural stone floor,
                  wall and decorative tile.  They import a
                  majority of these products from suppliers and
                  manufacturers in Europe, South America
                  (Brazil) and the Near and Far East.  Their
                  markets include the United States and Canada.
                  They also offer private label programs for
                  branded retail sales customers, buying groups,
                  large homebuilders and home center store
                  chains.  See http://www.iwttesoro.com

Chapter 11 Petition Date: September 6, 2007

Court: Southern District of New York (Manhattan)

Debtor's Counsel: Dawn K. Arnold, Esq.
                  Jonathan S. Pasternak, Esq.
                  Rattet, Pasternak & Gordon-Oliver, L.L.P.
                  550 Mamaroneck Avenue
                  Harrison, NY 10528
                  Tel: (914) 381-7400
                  Fax: (914) 381-7406

Debtors' Consolidated Financial Condition as of June 30, 2007:

Total Assets: US$39,798,579

Total Debts:  US$47,940,983

Debtor's 30 Largest Unsecured Creditors:

   Entity                           Claim Amount
   ------                           ------------
General Noli                        US$1,546,012
249 Northeast 97th Street
Miami Shores, FL 33138

Cerdomus Ceramiche, S.P.A.          US$1,051,737
Via Emilia Pontente
North 1000, 48014
Castelbolognese
Ravenna, Italy

U.D.A. Ceramica, S.P.A.               US$870,932
Zona Industriale Fuorni
84131 Salerno, Italy

Alfa Porcelanica, S.A.                US$766,802
C.R. N-340-45, 700
Apdo Correos 81 Nules
Castellon, Italy

Isla Tiles                            US$665,856
Via Isola 2,4,6
42030 Viano (RE), Italy

Panaria Ceramica                      US$608,495
Via Panaria Bassa 22/a
41034 Finale Emilia
(Modena) Italy

Azteca Ceramica                       US$595,119
Ctra. Castellon-Alcora,
19,7 Apdo. Correos
15, 12110
Castellon-Espana, Spain

Castelvetro                           US$592,608
Strada Statale 569
North 173
41050 Solgnano Di
Castelvetro (MO), Italy

Ceramicasa                            US$462,122
Via Ferrari Carazzoli, 19
41042 Fiorano Modenese
(MO) Italy

Delta Ceramic                         US$461,620
Rodovia Rio Claro K.M. 7
Piracibaba C.E.P.
13500-970
Rio Claro/S.P., Brazil

Porcellana Di Rocca, S.P.A.           US$435,440
Via Emilia Ponente
1000 Int. A, 48014
Castelbolognese
Ravenna, Italy

Incopisos-Pisos                       US$412,240
Rodovia Washington Luiz
K.M. 16-C.E.P. 13510
Santa Gertrudes/S.P.
Brazil

Pan American Ceramics                 US$361,010
16610 East Gale Avenue
City of Industry, CA 91745

Laufen International                  US$358,995
Ceramic
9450 Phillips Highway
Jacksonville, FL 32256

Zirconio                              US$344,543
Cerretera de Onda
K.M. 3-12540
V.I.L.A.-Real (Castellon),
Spain

Ceramica Fondovalle, S.P.A.           US$330,378
Via Rio Piodo, 12
41050 Torre Maina (MO),
Italy

Sassolnoa US$ Sassolart               US$292,486
Via Canale 200-
Villalunga di Casalgrande
42013 (RE), Italy

Lume                                  US$231,229

MegaCera, U.S.A.                      US$223,704

Vitra-Eczacibasi                      US$218,661

Seren issima Cir                      US$203,686
Industrie Cer.

Sands Commerce Center,                US$181,305
L.L.C.

Industrie Ceramica                    US$164,934
Fragnani

Ceramica Vallelunga                   US$163,638

Ceramica Gomez                        US$154,221

C.I.S.F. Ceramiche                    US$149,714
Industriali

Itagres Revestimentos                 US$142,225
Ceramico

A.C.I.F.                              US$135,881

Termal Tiles, U.S.A.                  US$131,237

Spa Ceramica                          US$121,526


MYERS INDUSTRIES: GS Capital Acquisition to Close in Fourth Qtr.
----------------------------------------------------------------
Myers Industries Inc. disclosed that its acquisition by GS
Capital Partners is now expected to close in the fourth quarter
of 2007, but no later than Dec. 15, 2007, as provided for in the
Agreement and Plan of Merger.

A final step in closing of the transaction is the financing
marketing period.  The Agreement provides GS Capital Partners
with the ability to determine the timing for the financing
marketing period dependent on conditions in the credit markets.

On July 23, 2007, the company said that its shareholders voted
at a special meeting to approve the acquisition for cash
consideration of US$22.50 per share, or total consideration,
including the assumption of debt, of approximately US$1.1
billion.  Myers Industries reported that approximately 68.8
percent of its outstanding shares, representing approximately
24.2 million shares, were cast in favor of the merger.

Myers Industries, Inc. -- http://www.myersind.com-- is an
international manufacturer of polymer products for industrial,
agricultural, automotive, commercial, and consumer markets.  The
Company is also the largest wholesale distributor of tools,
equipment, and supplies for the tire, wheel, and undervehicle
service industry in the US.  The company reported record net
sales from continuing operations of US$780.0 million in 2006.
It has operations in Brazil.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
July 6, 2007, Moody's Investors Service assigned a Ba3 rating to
a proposed US$685 million senior secured credit facility offered
by Myers Industries, Inc. and a B3 rating to a proposed US$265
million subordinated notes.


SANYO ELECTRIC: Advantage Outbids LongReach for Semicon Unit
------------------------------------------------------------
Japanese private equity firm Advantage Partners has moved into a
leading position in a bidding war for Sanyo Electric Co. Ltd.'s
semiconductor unit, sources revealed to Alison Tudor and Kentaro
Hamada of Reuters.

Reportedly, Advantage outbid The LongReach Group Ltd.'s
JPY110 billion offer, but Reuters sources were unable to confirm
the exact amount of the Japanese private firm.

According to the report, it is not certain whether Advantage
placed the bid on its own or with its consortium partners
Boston-based Bain Capital and Japan Industrial Partners.

In line with this development, it is likely that Sanyo will
grant Advantage Partners priority negotiating rights this month,
however, Sanyo spokesman Akihiko Oiwa said nothing has been
decided yet.

Financial sources of Reuters expressed that Sanyo's asking price
of JPY150-200 billion for the unit is very ambitious given the
chip unit needs costly restructuring.  Ms. Tudor and Mr. Hamada
quote one of its financial sources as saying, "This is a
troubled company that will take an enormous effort to turn
around."

There have been previous entities expressing interest in Sanyo's
semiconductor unit but have withdrawn from the bid for different
reasons.  Among those firms were Blackstone, who was in a
consortium with CVC Asia Pacific and Vestar Capital Partners.
Before Blackstone, well-known investment firm specializing in
technology deals, Francisco Partners who was in a consortium
with LongReach, CCMP Capital Asia alongside MKS, withdrew from
the auction.

                    About Sanyo Electric

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

                        *     *     *

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


* BRAZIL: State Firm Says Xerelete Is Commercially Viable
---------------------------------------------------------
Brazilian state-owned oil firm Petroleo Brasileiro SA said in a
note to Brazil's stock market regulator that its Xerelete oil
field in the Campos Basin is "commercially viable."

Dow Jones Newswires relates that Xerelete is about 155
kilometers southeast of Cabo Frio in Rio de Janeiro and 42
kilometers east of the Papa Terra field.  Petroleo Brasileiro
operates the field, while Total and Devon Corp. each hold a
stake in Xerelete's BM-C-14 block.

Accrding to Dow Jones, oil at Xerelete "is heavy with 17.5
degrees on the scale of the American Petroleum Institute."

According to preliminary geological studies, reserves at the
field were 1.4 billion barrels of oil equivalent.  Additional
studies are needed before a development plan for the field can
be disclosed, Petroleo Brasileiro told Dow Jones.

                  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.


* BRAZIL: State Firm Investing US$4.9 Billion in US Operations
--------------------------------------------------------------
Brazilian state-owned oil firm Petroleo Brasileiro SA's
international director Nestor Cervero told Dow Jones Newswires
that the firm will invest some US$4.9 billion in the US from
2008 to 2012.

Dow Jones relates that of the US$112.4 billion allotted for all
its investments from 2008 to 2012, Petroleo Brasileiro will
spend US$15 billion in overseas operations.

Petroleo Brasileiro told Dow Jones that its overseas investments
will continue to be concentrated on these regions:

          -- Latin America,
          -- West Africa, and
          -- the U.S. side of the Gulf of Mexico.

Petroleo Brasileiro will begin producing 20,000 barrels a day
from three wells at its Chinook and Cascade fields in the U.S.
Gulf of Mexico in 2010.  By 2014, since more wells will
gradually start production, the fields' output will increase to
80,000 barrels daily by 2014, Dow Jones states, citing Mr.
Cervero.

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


AHFP LUMEN: Will Hold Final Shareholders Meeting on Oct. 4
----------------------------------------------------------
AHFP Lumen will hold its final shareholders meeting on
Oct. 4, 2007, at:

         Boundary Hall, Cricket Square
         George Town, Grand Cayman
         Cayman Islands

These agendas will be taken during the meeting:

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

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

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

The liquidator can be reached at:

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


BASIS YIELD: Court Extends Injunction Until Nov. 19
---------------------------------------------------
The United States Bankruptcy Court for the Southern District of
New York (Manhattan) has granted Basis Yield Alpha Fund (Master)
temporary protection from lawsuits and seizure of assets by U.S.
creditors while its Chapter 15 case is being assessed for a
permanent injunction, Bloomberg News reported.

Basis Yield, which is being liquidated in the Grand Court of the
Cayman Islands, where it is registered, had filed for Chapter 15
protection in the U.S. Court on August 29, 2007, asking to be
shielded from U.S. creditors and for recognition of its main
Caribbean bankruptcy proceeding.

"I am not inclined to make any findings today as to whether
recognition should ultimately be granted [for the Cayman
filing]," U.S. Bankruptcy Judge Robert Gerber said at a Sept. 6
hearing in New York, according to Bloomberg.

The U.S. Court will convene a hearing on November 19 to consider
Basis Yield's request for recognition of the Caymans proceeding.

Bloomberg reported that Judge Gerber had told Basis Yield
attorneys to be prepared to address U.S. Bankruptcy Judge Burton
Lifland's August 30 order rejecting a similar bid for
recognition of a Caymans bankruptcy proceeding by two Bear
Stearns Cos. hedge funds after finding that they did most of
their business in the U.S.

As previously reported, Basis Yield's registered office, the
feeder funds, 10% of investors and all of its records are
located in the Caymans.  On August 29, Basis Yield's Chapter 15
case received recognition from the High Court of Justice,
Chancery Division, Companies Court, in England.

Under Chapter 15 of the U.S. Bankruptcy Code, a company with an
insolvency filing in another country where it has a significant
presence can ask U.S. courts to defer to a foreign proceeding.

Representing Citigroup Global Markets Ltd., a creditor in Basis
Yield's case, Lindsee Granfield, Esq., at Cleary Gottlieb Steen
& Hamilton in New York, however, asserted that "it isn't clear
where the fund's main interests are."  Ms. Granfield added that
the Court will have to determine "where are the assets and where
were these funds actually operated."

If Citigroup were to successfully argue that the Yield Fund's
main business operations are not in the Cayman Islands but in
the U.S., then Basis Yield's Chapter 15 case in the U.S. could
fail, allowing U.S. creditors to file lawsuits against the fund,
according to The Australian.

The paper further stated that investors face losing more than
80% of their US$320,000,000 total stake, based on the most
recent update from Basis Capital Group.

Judge Gerber said he wants "to move quickly to resolve as many
issues as possible" out of fairness to Grant Thornton
International, the liquidator appointed by the Cayman Islands
court, according to Bloomberg.

The exact assets of the fund are "undetermined," Bloomberg said.

Basis Yield indicated in its Chapter 15 petition that its assets
and liabilities aggregate more than US$100,000,000 each.

Basis Yield's assets is down from US$436,000,000 at
Jan. 31, 2007, according to Bloomberg data.

Basis Yield Alpha Fund (Master) is a Cayman Islands mutual fund.
It operates as a master-feeder structure that allows investors'
funds to be channeled through two companies operating in a
single jurisdiction to a "master" company operating in the same
jurisdiction.  These two feeder funds are Basis Yield Alpha Fund
(US), a US feeder fund for US taxable investors, and Basis Yield
Alpha Fund, a non-US feeder for all other investors.

On Aug. 29, 2007, Hugh Dickson, Stephen John Akers, and Paul
Andrew Billingham filed a chapter 15 petition for Basis Yield
(Bankr. S.D.N.Y. Case No. 07-12762).  Karen Dine, Esq. at
Pillsbury Winthrop Shaw Pittman LLP represents the petitioners.
(Basis Yield Bankruptcy News, Issue No. 3; Bankruptcy
Creditors' Service Inc. http://bankrupt.com/newsstand/or
215/945-7000)


MACQUARIE FINANCIAL: Proofs of Claim Filing Is Until Oct. 4
-----------------------------------------------------------
Macquarie Financial Infrastructure Alliance Ltd.'s creditors are
given until Oct. 4, 2007, to prove their claims to Maxine
Rawlins and Guy Major, 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.

Macquarie Financial's shareholder agreed on Aug. 14, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

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


PET-HOC INC: Will Hold Final Shareholders Meeting on Oct. 4
-----------------------------------------------------------
Pet-Hoc Inc. will hold its final shareholders meeting on
Oct. 4, 2007, at 9:30 a.m., at:

         101 Ash Street, HQ18,
         San Diego, California 92101
         USA

These agendas will be taken during the meeting:

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

   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:

         Joseph A. Householder
         101 Ash Street, HQ18
         San Diego, California 92101
         USA
         Telephone: 619-696-4576


RHAPSODY LEASING: Proofs of Claim Filing Ends on Oct. 4
-------------------------------------------------------
Rhapsody Leasing Ltd.'s creditors are given until Oct. 4, 2007,
to prove their claims to Melanie Whittaker 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.

Rhapsody Leasing's shareholder agreed on Aug. 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:

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


STERLING EQUITY: Proofs of Claim Filing Deadline Is Oct. 4
----------------------------------------------------------
Sterling Equity Offshore Fund Ltd.'s creditors are given until
Oct. 4, 2007, to prove their claims to Joshua Grant 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.

Sterling Equity's shareholder agreed on Aug. 8, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

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


STONE HOLDINGS: Proofs of Claim Must be Filed by Oct. 4
-------------------------------------------------------
Stone Holdings Inc.'s creditors are given until Oct. 4, 2007, to
prove their claims to Joshua Grant 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.

Stone Holdings' shareholder agreed on Aug. 17, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

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


TRISTAN SECURITIES: Sets Final Shareholders Meeting for Oct. 4
--------------------------------------------------------------
Tristan Securities Ltd. will hold its final shareholders meeting
on Oct. 4, 2007, at 10:00 a.m., at:

         Bank Lane
         P.O. Box N7768
         Nassau, Bahamas

These agendas will be taken during the meeting:

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

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

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

The liquidators can be reached at:

         Baird Limited
         Boyne Limited
         Ansbacher (Bahamas) Limited
         Bank Lane
         P.O. Box N 7768
         Nassau, Bahamas


VENUS INVESTMENT: Proofs of Claim Filing Ends on Oct. 4
-------------------------------------------------------
Venus Investment Fund Ltd.'s creditors are given until
Oct. 4, 2007, to prove their claims to Joshua Grant and Guy
Major, 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.

Venus Investment's shareholder agreed on Aug. 13, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

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


ZEBRA US: Proofs of Claim Filing Deadline Is Oct. 4
---------------------------------------------------
Zebra US Equity Long/Short Fund (Cayman) Offshore Ltd.'s
creditors are given until Oct. 4, 2007, to prove their claims to
Dwight Dube 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.

Zebra US' sole shareholder decided on Aug. 24, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

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




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


COVANTA HOLDING: Will Acquire EnergyAnswers' Operating Business
---------------------------------------------------------------
Covanta Holding Corporation has agreed to purchase the operating
businesses of EnergyAnswers Corporation, which includes two EfW
facilities in Massachusetts as well as several ancillary
businesses.

"We are very pleased to add these operations to our growing
portfolio," said Anthony Orlando, Covanta's President and Chief
Executive Officer.  "At Covanta, we are committed to providing
our communities with safe and efficient waste disposal and
clean, renewable energy.  This acquisition fits nicely with our
core strengths, and will expand our network of EfW and waste
management assets in the Northeast, strategically positioning us
to better serve markets in this region."

The acquired assets include a 400 tons-per-day EfW facility
located in Springfield, Miss., and a 240 tons-per-day EfW
facility located in Pittsfield, Miss.  Approximately 75 percent
of waste revenues are contracted for these facilities.  In
addition, Covanta is acquiring businesses that include:

   -- a landfill operation in Springfield, Miss., which is used
      for ash disposal two transfer stations, one in Canaan, NY,
      permitted to transfer 600 tons-per-day of waste, and the
      other located at the Springfield EfW facility, permitted
      to transfer 500 tons-per-day;

   -- a waste transportation and small collections business
      operated in connection with the acquired facilities, and

   -- a wood and yard waste recycling operation on Cape Cod,
      Miss.

Covanta has agreed to acquire EnergyAnswers' businesses for cash
and assumption of debt totaling $61 million, subject to working
capital adjustments.  The acquisition, which is subject to
customary conditions to closing, is expected to close during the
fourth quarter of 2007.

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

                        *     *     *

The company carries Standard & Poor's Ratings Services' BB-
corporate credit rating with a stable outlook.  It also carries
Moody's Investors Service's Ba2 Corporate Family Rating.




=======
C U B A
=======


* CUBA: Strengthens Economic Relations with Turkey
--------------------------------------------------
Cuban officials affirmed to Prensa Latina that their
participation in the International Trade Fair in Esmirna,
Turkey, has brought positive results for the country's economy.

Trade between Cuba and Turkey amounted to 12 million in 2006, up
83% compared to the previous year, the same report says.

Among Cuba's exports to Turkey are cigar, rum, nickel and sugar,
Prensa Latina relates.  Medicine and tourism are also beginning
to have a considerable weight in bilateral economic exchanges,
Prensa Latina relates, citing Cuba's Chamber of Commerce member
Eduardo Cueto.

Meanwhile, Turkish officials views its ties with Cuba as its
door to the rest of the Latin American markets, Prensa Latina
says.  Cuba is Turkey's main tourism destination in the
Caribbean.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Dec. 18, 2006, Moody's Investors Service said that Cuba's Caa1
foreign-currency issuer rating reflects the debt moratorium that
has been in place for more than 15 years, leading to the
accumulation of principal and interest arrears.

Moody's assigned these ratings on Cuba:

      -- CC LT Foreign Bank Deposit, Caa2
      -- CC LT Foreign Currency Debt, Caa1
      -- CC ST Foreign Bank Deposit, NP
      -- CC ST Foreign Currency Debt, NP
      -- Issuer Rating, Caa1




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


* DOMINICAN REPUBLIC: Financial Sector Risks Lessens, Says IMF
--------------------------------------------------------------
The International Monetary Fund said in a statement that risks
in the Dominican Republic's financial sector have considerably
decreased.

The Dominican banking system was significantly strengthened,
according to the IMF's statement.

Business News Americas relates that the IMF concluded its
seventh review of the government's economic program on
Sept. 7, 2007.  The IMF is supporting the program a standby
agreement.  It also ratified the disbursement of some US$118
million.  Disbursements under the arrangement totaled US$554
million.

The Dominican prudential regulation "has broadened to cover
financial group," BNamericas notes, citing the IMF.  "Financial
supervision is emphasizing risk management properly," the IMF
said.

The IMF deputy-managing director Murilo Portugal said in the
statement, "Plans for an international financial center should
be consistent with international standards on both consolidated
banking supervision and anti-money laundering and counter-
terrorism financing."

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
May 4, 2007, Moody's Investors Service upgraded the Dominican
Republic government's foreign- and local-currency bond ratings
to B2 from B3.  The Dominican Republic's foreign-currency
country ceiling was upgraded to Ba3 from B1.  The country's
ceiling for foreign-currency bank deposits was also upgraded to
B3 from Caa1.  Moody's said all ratings have stable outlook.




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


AES CORP: Hiring Independent Auditor for Brasiliana Appraisal
-------------------------------------------------------------
The AES Corp., along with Banco Nacional de Desenvolvimento
Economico e Social SA, will hire an independent auditor to
appraise Brazilian power holding firm Brasiliana's value,
Business News Americas reports.

BNamericas relates that Banco Nacional wants to sell its 49.99%
stake in Brasiliana, where AES holds 50.01%.

AES unit AES Eletropaulo said in a filing with the Sao Paulo
stock exchange Bovespa that Banco Nacional and AES had performed
separate appraisals of Brasiliana and agreed to hire an auditor
to conduct the third appraisal, as results of the first two
differed by over 10%.

According to BNamericas, the minimum price for Brasiliana will
be set by a weighted average of the three appraisals.

Brazilian power firms EDB, Cemig and CPFL Energia are
considering the acquisition of the 49.99% stake.  AES has first
refusal, BNamericas states.

                    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.

                        *     *     *

As reported on Aug. 23, 2007, Fitch Ratings affirmed AES
Corporation's Issuer Default Rating at 'B+', and assigned a
short-term IDR of 'B'.

Fitch also took these rating actions:

* AES
   -- Senior unsecured to 'BB/RR1' from 'BB/RR2'

* AES Trust III
   -- Trust preferred securities to 'B+/RR4' from 'B/RR5'.

* AES Trust VII
   -- Trust preferred securities to 'B+/RR4' from 'B/RR5'.

In addition, Fitch affirmed these ratings:

* AES
   -- Senior secured credit facility at 'BB+/RR1';
   -- Junior secured notes at 'BB+/RR1'.




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


AFFILIATED COMPUTER: Renews US$19MM Services Contract w/ Boston
---------------------------------------------------------------
Affiliated Computer Services Inc. has been awarded a contract
renewal by the City of Boston to provide full-service parking
ticket collections, booting and towing, and fleet management
services.  Affiliated Computer has served the city since 1981.
The contract has a length of up to three years and a total value
of US$19 million, including two one-year renewal options, and
was reflected in Affiliated Computer' fourth quarter fiscal year
2007 results.

"Affiliated Computer has worked closely with Boston over the
years to help keep pace with the changing traffic demands of
such a vital city," said Michael Huerta, Affiliated Computer
managing director, Transportation Solutions.  "As a national
provider of parking services to major cities, Affiliated
Computer is uniquely equipped to provide the services Boston
needs in the future."

Services provided include parking violation processing, notice
generation and mailing, adjudication and appeals scheduling,
document imaging and correspondence management, training, and
help desk support.

In addition to Boston, Affiliated Computer has parking contracts
with Cleveland, Dallas, Denver, Detroit, Los Angeles, New
Orleans, Philadelphia, St. Louis, San Francisco, and Washington,
D.C.

                 About Affiliated Computer

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

                        *     *     *

Affiliated Computer Services currently carries Fitch Ratings' BB
Issuer Default Rating.




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


ARROW ELECTRONICS: Partners w/ IBM Global Engineering Solutions
---------------------------------------------------------------
Arrow Electronics Inc.'s North American Components business
entered into a new relationship with IBM Global Engineering
Solutions to broaden Arrow's silicon portfolio by coupling
Arrow's custom chip design and logistics capabilities with IBM's
foundry products and services.

"Arrow is pleased to expand its long-standing relationship with
IBM," said Michael J. Long, president, Arrow Global Components.
"In addition to expanding Arrow's portfolio of IBM products and
services, this foundry relationship completes our custom silicon
offering.  Our customers now can benefit from a complete
portfolio of solutions, ranging from field programmable gate
arrays (FPGA) to foundry designs."

Arrow has more than 20 years of custom logic design expertise.
Custom Logic Solutions, a division of Arrow NAC, offers a
comprehensive portfolio of design engineering, technical sales
and fulfillment logistics for FPGA, structured and standard cell
Application-Specific Integrated Circuits, and foundry
engagements.  Through Arrow's relationship with IBM and other
industry-leading electronic components manufacturers, customers
gain access to the right combination of semiconductor
technology, design services and intellectual property to meet
their custom logic needs for a variety of end-market segments,
including communications, consumer electronics and industrial
equipment.

"With this relationship, we can bring IBM's industry-leading
semiconductor manufacturing, IP library, and extensive foundry
related services to an even broader client base," said Adalio
Sanchez, general manager, IBM Global Engineering Solutions.
"IBM's collaboration with Arrow will also enable our clients to
leverage Arrow's custom logic design experience to fulfill their
needs for advanced component solutions."

              About Arrow North American Components

The North American Components business of Arrow Electronics,
Inc. is a leading provider of semiconductors and passive,
electromechanical and connector products, computing solutions,
services and supply chain solutions tailored to serve distinct
customer segments with dedicated sales teams.  Two primary,
customer-focused NAC groups serve these market segments: The
Arrow Electronics Components Group serves North American-based
OEM and contract manufacturing customers and the Arrow/Zeus
Electronics Group targets the aerospace and military markets.

                    About Arrow Electronics

Headquartered in Melville, New York, Arrow Electronics Inc.
-- http://www.arrow.com/-- provides products, services and
solutions to industrial and commercial users of electronic
components and computer products.   Arrow serves as a supply
channel partner for nearly 600 suppliers and more than 130,000
original equipment manufacturers, contract manufacturers and
commercial customers through a global network of over 270
locations in 53 countries and territories.

The company operates in France, Spain, Portugal, Denmark,
Estonia, Finland, Ireland, Latvia, Lithuania, Norway, Sweden,
Italy, Germany, Austria, Switzerland, Belgium, the Netherlands,
United Kingdom, Argentina, Brazil, Mexico, Australia, China,
Hong Kong, Korea, Philippines and Singapore.

                        *     *     *

As reported on March 30, 2007, Moody's affirmed Arrow
Electronics' senior preferred stock at Ba2 and senior
subordinated stock at Ba1.

Arrow Electronics carries Fitch's 'BB+' issuer default rating.
The company's senior unsecured notes and senior unsecured bank
credit facility also carry Fitch's 'BB+' rating.  Fitch said the
rating outlook is positive.


CINRAM INT'L: Declares CDN$0.2708 Per Unit Cash Distribution
------------------------------------------------------------
Cinram International Income Fund has declared a cash
distribution of CDN$0.2708 per unit for the month of September
2007, payable on Oct. 15, 2007, to unitholders of record at the
close of business on Sept. 28, 2007.

Cinram International Limited Partnership has also declared a
cash distribution of CDN$0.2708 per Class B limited partnership
unit for the month of September 2007, payable on Oct. 15, 2007,
to unitholders of record at the close of business on
Sept. 28, 2007.

The Fund and the Partnership's current annualized distribution
rate is CDN$3.25 per unit, payable in monthly distributions of
CDN$0.2708 per unit.  In accordance with the distribution policy
of both the Fund and the Partnership, unitholders of record at
the close of business on the last business day of each calendar
month are paid a distribution on or about the 15th day of the
following month.

                   About Cinram International

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

                        *     *     *

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


CKE RESTAURANTS: Paying US$0.06 Per Share Dividends on Nov. 26
--------------------------------------------------------------
CKE Restaurants Inc.'s Board of Directors declared a third
quarter dividend of US$0.06 per share of common stock to be paid
on Nov. 26, 2007, to its stockholders of record at the close of
business on Nov. 5, 2007.  The company had 57,218,903 shares of
common stock issued and outstanding as of Sept. 7, 2007.

As of the end of its fiscal 2008 first quarter ended
May 21, 2007, CKE Restaurants, Inc., through its subsidiaries,
had a total of 3,022 franchised, licensed or company-operated
restaurants in 43 states and in 13 countries, including 1,101
Carl's Jr. restaurants and 1,905 Hardee's restaurants.

                    About CKE Restaurants

Based in Carpinteria, Calif., CKE Restaurants, Inc. (NYSE: CKR)
-- http://www.ckr.com-- through its subsidiaries, franchisees
and licensees, operates some of the most popular U.S. regional
brands in quick-service and fast-casual dining, including the
Carl's Jr.(R), Hardee's(R), La Salsa Fresh Mexican Grill(R) and
Green Burrito(R) restaurant brands.  The company operates 3,131
franchised, licensed or company-operated restaurants in 43
states and in 13 countries -- including Mexico and Singapore.

                        *     *     *

As reported in the Troubled Company Reporter on Sept. 10, 2007,
Standard & Poor's Ratings Services has revised its outlook on
Carpenteria, California-based CKE Restaurants Inc. to negative
from stable.  At the same time, S&P's has affirmed all the
ratings, including the 'BB-' corporate credit rating, on the
company.


FIRST DATA: KKR Okays Covenant on US$24-Billion Debt, WSJ Says
--------------------------------------------------------------
Kohlberg Kravis Roberts & Co. looks agreeable to concessions to
investment banks arranging the US$24 billion in debt for its
acquisition of First Data Corp., The Wall Street Journal
reports, citing people familiar with the matter.

Specifically, WSJ's sources said, KKR appears willing to gives
its nod to a covenant that places a performance criteria on
First Data's debt.  Thus making the debt easier to sell to
investors doubtful of the potential risk.  As a result, the sale
of the debt financing is expected to be launched by within this
week, WSJ's sources added.

In July 2007, 98% First Data's shareholders approved the
company's merger agreement with KKR.  Upon the closing of the
merger, the company's shareholders will be entitled to receive
US$34.00 in cash, without interest, for each share of First Data
common stock held.

                      About First Data

First Data Corp. (NYSE: FDC) -- http://www.firstdata.com/--
provides  electronic commerce and payment solutions for
businesses worldwide, including those in New Zealand, the
Netherlands and Mexico.  The company's portfolio of services and
solutions includes merchant transaction processing services;
credit, debit, private-label, gift, payroll and other prepaid
card offerings; fraud protection and authentication solutions;
receivables management solutions; electronic check acceptance
services through TeleCheck; as well as Internet commerce and
mobile payment solutions.  The company's STAR Network offers
PIN-secured debit acceptance at 2 million ATM and retail
locations.

                        *     *     *

First Data Corp.'s long-term foreign and local issuer credits
carry Standard & Poor's Ratings Services' 'BB+' rating, which
were placed on April 2, 2007, with a negative outlook.


ICONIX BRAND: Inks Pact to Buy Official Pillowtex for US$231 Mln
----------------------------------------------------------------
Iconix Brand Group Inc. has entered into a definitive agreement
to purchase Official Pillowtex LLC for US$231 million in cash
with contingent payments of up to an additional US$15 million in
cash based upon the brands surpassing specific revenue targets.

Official Pillowtex is a licensing company that owns a large
portfolio of home brands including four primary brands, Cannon,
Royal Velvet, Fieldcrest and Charisma and numerous others
home brands including St. Mary's and Santa Cruz.

The four primary brands are all currently licensed in the U.S.:
Cannon and Royal Velvet to Li & Fung USA, Fieldcrest to Target
Stores and Charisma to Westpoint Stevens. In the aggregate the
four brands are estimated to generate between US$35 and US$37
million in 2008 royalty revenue with direct expenses of between
US$5 and US$7 million, and will be accretive to earnings.  Total
aggregate guaranteed royalty revenue for the brands equals
approximately US$160 million or approximately 65% of the
purchase price.

According to Neil Cole, Chairman and CEO of Iconix Brand Group,
"This is a transformative acquisition for Iconix as our brand
portfolio now transcends the fashion industry with the addition
of four iconic home brands.  These brands have a combined three
hundred years of history and a level of awareness and
authenticity that few brands in any category can match.  We
believe that the home industry is an ideal fit for our first
acquisition outside of fashion as there is a lack of innovative
marketing and differentiation among brands.  I believe that our
marketing expertise will enable us to maximize the potential of
these iconic brands and realize numerous growth opportunities
including extending their reach into new categories in the home
as well as into new markets around the world and developing some
of the additional smaller brands within the Pillowtex
portfolio."

The purchase price for the acquisition will be paid by Iconix in
cash.  The acquisition is anticipated to close later this year
and is subject to customary closing conditions including
clearance under the Hart-Scott-Rodino Anti Trust Improvements
Act of 1976, as amended.

Based in New York City, Iconix Brand Group Inc. (Nasdaq: ICON)
-- http://www.iconixbrand.com/-- owns fashion brands to retail
distribution from the luxury market.  The company licenses its
brands to retailers and manufacturers worldwide.  The group has
international licensees in Mexico, Japan and the United Kingdom.

                        *     *     *

As reported in the Troubled Company Reporter on June 20, 2007,
Standard & Poor's Ratings Services revised its ratings outlook
on Iconix Brand Group Inc. to negative.  At the same time,
Standard & Poor's assigned its 'B-' debt rating to Iconix's then
proposed US$250 million convertible senior subordinated notes
due 2012.

As reported in the Troubled Company Reporter on June 18, 2007,
Moody's Investors Service affirmed Iconix Brand Group Inc.'s
corporate family rating at B1 and assigned a B3 rating to the
company's then proposed US$250 million convertible senior
subordinated note offering.


SOLO CUP: Selling Hoffmaster Biz to Kohlberg Unit for US$170 Mln
----------------------------------------------------------------
Solo Cup Company has signed an agreement to sell its Hoffmaster
business to an affiliate of funds managed by Kohlberg & Company,
LLC for approximately US$170 million.  Subject to regulatory
approvals and other customary closing conditions, the
transaction is expected to close within the next 45 days.
Kohlberg has received a commitment to obtain financing for the
transaction, subject to customary conditions.

Under the terms of the agreement, a newly formed affiliate of
Kohlberg will acquire all of the assets of the company's
Hoffmaster business, including its product portfolio of
disposable tableware and special occasions consumer products and
associated manufacturing equipment, as well as two manufacturing
facilities located in Oshkosh and Appleton, Wis., a leased
distribution center located in Indianapolis, Ind., and a
sourcing subsidiary in Hong Kong.

"This decision is one that comes from our previously discussed
initiative to divest non-core assets," said Robert M. Korzenski,
CEO, Solo Cup Company.  "While the Hoffmaster business is
strong, this divestiture allows us to reduce our overall debt
burden and increase our focus and investment on improving
performance and positioning the Company for growth."  The
proceeds from the sale are expected to be applied to the
Company's term loan.

"This transaction, when complete, combined with the previously
announced sale-leaseback of six properties and improved working
capital management will have reduced our debt by approximately
US$300 million since the beginning of the year," added Mr.
Korzenski.

Solo will provide certain support services to the business. "We
will work closely with the Hoffmaster leadership team to ensure
a smooth transition," Mr. Korzenski continued.  "I also want to
thank the Hoffmaster employees for their many years of dedicated
service to the Solo and Sweetheart companies.  I believe this is
a great opportunity for Hoffmaster to achieve its potential as a
stand-alone entity."

Hoffmaster manufactures specialty napkins, placemats, table
covers and other items for the restaurant and lodging
industries.  Through its Sensations(R) brand and Creative
Expressions Group, the company produces premium disposable
tableware for special occasions sold through supermarkets and
party stores.

Kohlberg & Company, L.L.C. is a leading U.S. private equity firm
with offices in Mt. Kisco, New York and Palo Alto, California.
Since its inception in 1987, Kohlberg has completed over 90
platform and add-on acquisitions as the control investor in a
variety of industries, including manufacturing, healthcare,
consumer products and service industries.  Kohlberg has invested
a total of US$1.8 billion in equity across six private equity
funds with an aggregate transaction value of approximately US$7
billion.

Headquartered in Highland Park, Illinois, Solo Cup Company
-- http://www.solocup.com/-- manufactures disposable
foodservice products for the consumer and retail, foodservice,
packaging, and international markets.  Solo Cup has broad
expertise in plastic, paper, and foam disposables and creates
brand name products under the Solo, Sweetheart, Fonda, and
Hoffmaster names.  The company was established in 1936 and has a
global presence with facilities in Asia, Canada, Europe, Mexico,
Panama and the United States.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Sept. 7, 2007, Fitch Ratings has affirmed the ratings for Solo
Cup Company as:

  -- Issuer default rating (IDR) 'B-';
  -- Senior secured first lien term loan 'B+/RR2';
  -- Senior secured revolving credit facility 'B+/RR2';
  -- Senior subordinated notes 'CCC/RR6'.


VITRO SAB: Suspends Operations Due to Natural Gas Supply Failure
----------------------------------------------------------------
Vitro S.A.B. de C.V. disclosed that five of its glass containers
production facilities and one of its automotive glass production
facility located Mexico City, Toluca, Queretaro and Guadalajara
temporarily interrupted operations.  The interruption resulted
from a failure in natural gas supply caused by recent incidents
at some of PEMEX gas pipelines located in the state of Veracruz.

In line with the past experiences occurred on July 2007, which
temporarily affected the natural gas supply to two of the
company's production facilities, the company is implementing
emergency measures at the affected facilities to minimize the
impact and continue the glass bottles and automotive glass
supply to our clients.

The company will keep our investors and the public informed on
the development of these events as we evaluate the impact.

PEMEX has announced that it is working to restore its supply
service to normal levels as soon as possible.  The plants will
return to normal operations as soon as the natural gas supply is
100% restored at each of the facilities.

Headquartered in Monterrey, Mexico, Vitro, S.A.B. de C.V. (BMV:
VITROA; NYSE: VTO), through its two subsidiaries, Vitro Envases
Norteamerica, SA de C.V. and Vimexico, S.A. de C.V., is a
leading global glass producer, serving the construction and
automotive glass markets and glass containers needs of the food,
beverage, wine, liquor, cosmetics and pharmaceutical industries.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Jan. 18, 2007, Moody's Investors Service assigned a global
foreign currency rating of B2 to Vitro, SAB de CV's proposed
US$750 million senior unsecured guaranteed notes due 2012 and
2017, which are being offered in the context of a major
financial restructuring initiative the company announced on
Jan. 11, 2007.

The rating assigned:

   Vitro, SAB de CV:

   -- Proposed US$750 million senior unsecured guaranteed notes
      due 2012 and 2017, at 2.

The ratings affirmed:

Vitro, SAB de CV:

  -- Corporate Family at B2;

  -- US$225 million 11.75% senior unsecured notes due 2013, at
     Caa1, with the possibility of upgrade to B2 upon
     execution of the proposed guarantee structure consistent
     with the proposed notes.




=================
N I C A R A G U A
=================


* NICARAGUA: Orders Cancellation of Geosa Privatization
-------------------------------------------------------
The Nicaraguan government said in a statement that the attorney
general has ordered the termination of thermo generator Geosa's
concession.

According to the government's statement, the attorney general
declared the 2002 privatization of Geosa void.

Business News Americas relates that in an investigation ordered
by Nicaraguan President Daniel Ortega, the attorney general
spotted alleged irregularities in the sale of Geosa.  The
generator was sold below value.

The government said in a statement that documents weren't found
explaining the state power firm Enel privatization committee's
selling Geosa for US$11.3 million when it was formed for US$22.4
million.

BNamericas notes that other alleged irregularities are:

          -- not establishing significant obligations in regard
             to the delivery of energy produced or the
             responsibility to upgrade, and

          -- inconsistencies in notarizing documents.

Geosa denied the claims to BNamericas, saying that the
privatization process was conducted lawfully and in "absolute
transparency."  According to the firm, it complied with 98.7% of
its supply contracts this year and exceeded 100% compliance in
2006.

Geosa will be meeting with authorities, BNamericas reports.

                        *     *     *

Moody's Investor Service assigned these ratings to Nicaragua:

                    Rating     Rating Date
                    ------     -----------
  Long Term          Caa1     June 30, 2003
  Senior Unsecured
  Debt                B3      June 30, 2003




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


STARTECH ENVIRONMENTAL: Appoints Distributor for UK & Poland
------------------------------------------------------------
Startech Environmental Corp. has appointed Waste 2 Green Energy
Limited, headquartered in London and with a presence in Poland,
as the company's exclusive distributor for the United Kingdom
and also for the Republic of Poland.

Harvinder Hungin, Chairman of Waste 2, said, "As Startech's
exclusive distributor for the UK and Poland, we are well
positioned to provide sales, service and after-market support to
customers in the European Union and also in the other countries
of Europe.  Waste 2 will also promote and participate in the
development of new waste to energy projects.

"Both the United Kingdom and Poland are among the twenty-seven
Member States of the European Union whose collective economy is
the largest in the world.  Waste 2 is extremely well positioned
to help address the critical issues of waste disposal and green
energy production in the European market using Startech's
leading-edge plasma processing technology."

The Plasma Converter System safely and economically destroys
wastes, no matter how hazardous or lethal, and turns most into
useful and valuable products.  In doing so, the System protects
the environment and helps to improve the public health and
safety.  The system achieves closed-loop elemental recycling to
safely and irreversibly destroy Municipal Solid Waste, organics
and inorganics, solids, liquids and gases, hazardous and non-
hazardous waste, industrial by-products and also items such as
"e-waste," medical waste, chemical industry waste and other
specialty wastes, while converting many of them into useful
commodity products that can include metals and a synthesis-gas
called Plasma Converted Gas (PCG)(TM).

Among the many commercial uses for PCG, is its use to produce
"green electrical power," Gas-To-Liquid (GTL) fuels such as
ethanol, synthetic diesel fuel and other higher alcohol
"alternative" fuels. Hydrogen, for use and sale, can also be
separated and recovered from the PCG synthesis gas mixture.

The Startech Plasma Converter is essentially a manufacturing
system producing valuable commodity products from feedstock-
materials that were previously regarded as wastes.

Startech regards all wastes, hazardous and non-hazardous, as
valuable renewable resources.

                  About Startech Environmental

Headquartered in Wilton, Connecticut, StarTech Environmental
Corporation (OTC BB: STHK.OB) -- http://startech.net/ --is an
environment and energy industry company engaged in the
production and sale of proprietary plasma processing equipment
known as the Plasma Converter System(TM).  The Plasma Converter
System safely and economically destroys wastes, no matter how
hazardous or lethal, and turns most into useful and valuable
products.

The company operates in Australia, and Panama.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 25, 2007, Startech Environmental Corp. reported a net loss
of US$1,026,985 on revenue of US$191,976 for the second quarter
ended April 30, 2007, compared with a net loss of US$4,620,815
on revenue of US$111,464 for the same period ended
April 30, 2006.


* PANAMA: Casinos Keep Wary Eyes on U.S. Authorities
----------------------------------------------------
United States authorities are preparing to accuse casinos in
Panama of money laundering, making owners adopt computerized
operations to increase transparency in their ledgers, Prensa
Latina reports.

The U.S.' move came after 15 casinos and 27 gambling machine
halls reported US$485 million income from January to July, the
same report adds.

The use of computers in the casinos' operations requires
approval from authorities.  Once approved, the technology will
help report illegal operations to the Unidad de Analisis
Financiero and Junta de Control de Juegos, Prensa Latina says,
citing Antonio Alfaro, Asociacion de Administradores de Juegos
de Azar's president.

                        *     *     *

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

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
May 8, 2007, Standard & Poor's Ratings Services revised its
outlook on its 'BB' long-term sovereign credit rating on the
Republic of Panama to positive from stable and affirmed its 'B'
short-term foreign currency sovereign credit rating on the
republic.




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


COMVERSE TECH: Reports Prelim Fin'l Results in Second Quarter
-------------------------------------------------------------
Comverse Technology Inc. disclosed its preliminary unaudited
selected financial information for the second quarter of fiscal
2007 ended July 31, 2007.

For the second quarter, GAAP revenue, which excludes US$7.5
million in Witness Systems deferred maintenance and service
revenue not recognizable through purchase accounting following
its acquisition by Verint Systems, was US$446.5 million, and
adjusted (non-GAAP) revenue, which includes the Witness deferred
revenue, was US$454.0 million.  By comparison, both on a GAAP
and adjusted (non-GAAP) basis, revenue was US$394.1 million for
the second quarter of 2006, and US$405.7 million for the first
quarter of 2007.  Second quarter 2007 loss from operations on a
GAAP basis was US$73.6 million, compared with a loss from
operations on a GAAP basis of US$24.7 million for the second
quarter of fiscal 2006, and US$61.3 million for the first
quarter of fiscal 2007.  Adjusted (non-GAAP) income from
operations was US$32.2 million for the second quarter of fiscal
2007, compared with adjusted (non-GAAP) income from operations
of US$40.7 million for the second quarter of fiscal 2006, and
US$7.7 million for the first quarter of fiscal 2007.

                    Comverse Technology

Andre Dahan, President and Chief Executive Officer of Comverse
Technology, Inc. said, "We are making considerable progress
toward our goal of significantly improved profitability, as each
of our major operating subsidiaries achieved sequential
expansion in adjusted (non-GAAP) operating margin, leading to an
increase in consolidated adjusted (non-GAAP) operating margin to
7.1% in the second quarter, up from 1.9% in the first quarter.
We are focused on realizing our opportunities for profitable
growth in the future, and we are confident we will, as each of
Comverse Technology's major subsidiaries holds a leading
position in its key markets, providing valuable, differentiated
products to a global customer base that derives considerable
economic benefits and competitive advantages from the use of our
products."

"We are drawing closer to becoming current in our financial
filings.  At the same time, we are advancing and refining our
planning with respect to the Comverse Technology portfolio, and
its corporate and capital structure.  In this process, our focus
remains on the goal of maximizing shareholder value."

                       Comverse Inc.

Mr. Dahan said, "Comverse increased its adjusted (non-GAAP)
operating margin to 6.7% in the second quarter, from 3.0% in the
first quarter, achieving both year-over-year and sequential
revenue growth, and a significant sequential increase in product
bookings.  We have focused our efforts on building a Framework
for Profitable Growth, and our early actions driving
profitability and revenue enhancements are clearly evident in
second quarter results.  Comverse is on track to achieve its
near-term objective of achieving double-digit adjusted (non-
GAAP) operating margin, and we believe this goal will be reached
over the next couple of quarters.  We are now focused on
enhancing operational performance through horizontal process
improvements and reinvigorating business momentum by better
identifying and capitalizing on market growth drivers, and
better leveraging our valuable product portfolio.  Building on
the foundation of industry-leading, high-value products enabling
messaging and content services, converged IP communications, and
real-time converged billing, customer care and revenue
management, we believe our transformation framework will lead us
into a new era of profitable growth."

                       Verint Systems

"During the quarter, Verint Systems completed its strategic
acquisition of Witness Systems, and increased its adjusted (non-
GAAP) operating margin to 10.7%, from 10% in the first quarter.
The combination of Verint and Witness creates a new leader in
workforce and enterprise optimization, and opens new
opportunities for profitable growth.  Verint has been focused on
the integration of the two organizations and operations, and is
now turning its attention to realizing the opportunities for
growth synergies through cross-selling and up-selling what is
now the market's most comprehensive and valuable portfolio of
solutions," said Mr. Dahan.

                       Ulticom Inc.

"Ulticom's revenue at key telecom OEM customers rebounded, and
its next-generation IP/IMS-based nSignia product line is now
beginning to contribute to performance, and as a result, Ulticom
returned to double-digit adjusted (non-GAAP) operating margin,"
said Mr. Dahan.

                       Starhome B.V.

"Strong revenue growth led Starhome to an adjusted (non-GAAP)
operating margin of 2.7%, up from negative levels in the first
quarter," said Mr. Dahan.

                    Special Committee

The company continues to make substantial progress toward the
restatement of past financial statements, after which its
independent registered public accounting firm can begin the
audit process.  As projected last quarter, the company continues
to expect it will become current in its filings with the
Securities and Exchange Commission by the end of fiscal 2007.
Also as projected, Special Committee investigation and related
expenses declined substantially, from US$32.8 million in the
first quarter, to US$17.0 million in the second fiscal quarter
of 2007.  Any additional information that may be discovered in
the subsequent reviews or procedures performed by the company's
finance and accounting staff or any additional adjustments
proposed in the subsequent reviews and audits by the company's
independent registered public accounting firm could result in
delays to the restatement and filing process, and in adjustments
to the financial information presented herein, and such
adjustments could be material.  The timing of the company's
restatements and filings may be dependent on the timing of the
completion of similar activities at its Verint Systems Inc. and
Ulticom, Inc. subsidiaries.  The company continues to believe
that the aggregate historical sales and total cash flows as
previously reported are not likely to materially change.

                  Second Quarter 2007 Financial
                     and Operational Review

Revenue and Operations

Comverse Technology reported consolidated GAAP revenue, which
excludes US$7.5 million in Witness Systems deferred revenue not
recognizable through purchase accounting following its
acquisition by Verint Systems, of US$446.5 million, a US$52.4
million, or 13%, increase over revenue of US$394.1 million for
the prior-year period, and a US$40.8 million, or 10%, increase
from revenue of US$405.7 million for the first quarter.
Consolidated adjusted (non-GAAP) revenue of US$454.0 million for
the second quarter of 2007 was a US$59.9 million, or 15%,
increase over revenue for the prior-year period, and a US$48.2
million, or 12%, increase from the first quarter.  Witness
Systems, which was acquired by Verint Systems on May 25, 2007,
contributed US$37 million in GAAP revenue, and US$44.5 million
in adjusted (non-GAAP) revenue, in the second quarter of fiscal
2007.

Revenue at the company's Comverse, Inc. subsidiary was US$288.2
million for the second quarter of 2007, a US$13.2 million, or
5%, increase over revenue of US$275.0 million for the prior-year
period, and a US$3.7 million, or 1%, increase over revenue of
US$284.5 million for the first quarter.  Comverse achieved a
significant sequential increase in product bookings, and end-
user adoption of wireless value-added services and VoIP-based
services, two major demand drivers for Comverse, Inc.'s products
and services, remains healthy, as does demand for next-
generation billing and customer care solutions for service,
content, and e-commerce providers.  These solutions are designed
to reduce customers' operating costs, while enabling services
that foster customer loyalty and satisfaction.

During the second quarter, Comverse, Inc. enhanced its
leadership position in messaging, content delivery, converged IP
communications, and converged real-time billing and customer
care.  Comverse announced new product launches and enhancements
including: IMS Application Suite 2.0, allowing operators to
offer a superior service value and end-user experience, by
blending voice and video telephony services with converged
messaging, conferencing, presence, and network-based address
book capabilities, for seamless multimedia communications; and
the launch of a next-generation MyCall Converged Communications
suite, an integrated solution for the delivery of converged
consumer services over fixed broadband and mobile networks.
This new fixed-mobile convergence (FMC) solution was recently
selected to support "quad play" (fixed and mobile
communications, IPTV, and Internet) services in Norway.
Comverse also announced new customer selections or deployments
across a range of products, including converged billing and
customer care in the telecom, travel, and benefit card
processing industries, wireless content delivery, including
ringback tone service, SMS "texting," and the Insight IP Open
Services Environment for messaging and other Value-Added
Services.  In addition, customer interest in visual voicemail
has seen a notable increase, with some initial bookings, and
Comverse expects commercial launches in the coming months.
Overall, Comverse, Inc. products and applications are used by
hundreds of millions of people, through more than 500 service
providers in more than 130 countries, presenting significant
opportunities for the company to expand its market presence by
leveraging its broad product portfolio.

Verint Systems' GAAP revenue, which excludes US$7.5 million in
Witness Systems deferred revenue not recognizable through
purchase accounting following its acquisition by Verint on
May 25, 2007, was US$129.6 million for the second quarter of
2007, a US$37.3 million, or 40%, increase over revenue of
US$92.3 million for the prior-year period, and a US$28.3
million, or 28%, increase over revenue of US$101.3 million for
the first quarter.  Verint's revenue on an adjusted (non-GAAP)
basis was US$137.0 million for the second quarter of 2007, a
US$44.8 million, or 49%, increase over revenue for the prior-
year period, and a US$35.8 million, or 35%, increase over
revenue for the first quarter.  Witness Systems contributed
US$37 million in GAAP revenue, and US$44.5 million in adjusted
(non-GAAP) revenue, in the second quarter of fiscal 2007.
Verint experienced continued demand for its solutions for
security and business interaction intelligence, and through the
combination of Verint and Witness, in workforce and enterprise
optimization solutions, with the broadest portfolio of solutions
in the market for contact centers, back-offices, and branch
operations.  The growth in unstructured data, in the form of
captured voice, video, and text, has created opportunities for
Verint's analytic software to deliver timely actionable
intelligence to enhance security and improve business
performance.  Verint is focused on the successful integration of
Witness, and now expects to begin realizing growth synergies
through the cross-selling, up-selling, and strategic bundling of
their combined complementary products.  Verint also announced
new customer selections in both workforce performance
optimization, and video security.

Revenue at the company's Ulticom, Inc. subsidiary was US$17.4
million for the second quarter of 2007.  This represents a
US$0.2 million, or 1%, increase over revenue of US$17.1 million
for the prior-year period, and a US$5.9 million, or 52%,
increase over revenue of US$11.4 million for the first quarter.
Revenue from large telecommunications OEM customers rebounded,
and Ulticom began to realize revenue from its next-generation
nSignia IP/IMS-based products, in addition to its established
SS7/Sigtran signaling products.

Revenue at the company's Starhome B.V. subsidiary was US$12.7
million for the second quarter of 2007, a US$2.5 million, or
24%, increase over revenue of US$10.2 million for the prior-year
period, and a US$3.0 million, or 31%, increase over revenue of
US$9.7 million for the first quarter.  Starhome's leading
solution helps carriers maximize their subscribers' wireless
roaming network usage.

                           Backlog

Backlog represents signed purchase orders or customer
commitments deemed to be firm that have not yet been recognized
as revenue as of the balance sheet date but are expected to be
recognized in the next 12 months.

Consolidated 12-month orders backlog of US$848.6 million at
July 31, 2007 was 12.2% above the US$756.2 million backlog at
the prior-year period, and 11.8% above the US$758.7 million
backlog at April 30, 2007.  The majority of the year-over-year
and sequential backlog increase was attributable to Verint's
acquisition of Witness on May 25, 2007.

                   Operating Income/Margin

GAAP Basis -- Loss from operations on a GAAP basis was US$73.6
million for the second fiscal quarter of 2007, compared to a
loss from operations of US$24.7 million for the second quarter
of fiscal 2006.  This decline reflects a number of items
delineated in the GAAP to adjusted (non-GAAP) reconciliation
table, and described in the "Special Items" section that
follows. Operating margin on a GAAP basis for the second fiscal
quarter of 2007 was negative 16.5%, compared with negative 6.3%
for the prior-year period, and negative 15.1% for the first
quarter of 2007.

Second quarter 2007 loss from operations on a GAAP basis
increased by US$12.3 million compared to the US$61.3 million
GAAP loss from operations for the first quarter of 2007.  This
change reflects a number of items delineated in the GAAP to
adjusted (non-GAAP) reconciliation table, and described in the
"Special Items" section that follows.

Adjusted (Non-GAAP) Basis -- Adjusted (non-GAAP) income from
operations was US$32.2 million for the second quarter of fiscal
2007, compared to adjusted (non-GAAP) income from operations of
US$40.7 million for the prior-year period, and adjusted (non-
GAAP) income from operations of US$7.7 million for the first
quarter of 2007.  Adjusted (non-GAAP) operating margin was 7.1%
for the second quarter of fiscal 2007, compared with 10.3% for
the prior-year period, and 1.9% for the first quarter of fiscal
2007.

        Cash, Cash Equivalents, Bank Time Deposits
               and Short-Term Investments

The company ended the second quarter of fiscal 2007 with cash
and cash equivalents, bank time deposits and short-term
investments of US$1,431.4 million, compared to US$1,827.1
million at April 30, 2007, for a decrease of approximately
US$395.7 million.  During the second quarter, the company
purchased US$293 million in preferred stock from its Verint
Systems subsidiary, which used the proceeds to fund, in part,
its US$950 million acquisition of Witness Systems.  During the
quarter Verint used US$40 million to pay down debt, as described
below.

                            Debt

The company ended the quarter with convertible debt of US$419.6
million. During the second quarter, the company's Verint Systems
subsidiary entered into a US$650 million 7-year term loan
facility to fund, in part, its acquisition of Witness Systems,
and later paid down US$40 million of that debt, resulting in a
balance of US$610 million at July 31, 2007.

                       Special Items

Loss from operations on a GAAP basis primarily reflects the
incurrence of the following special items:

   -- Exclusion of Witness Systems deferred maintenance and
      service revenue of US$7.5 million not recognizable through
      purchase accounting following its acquisition by Verint.

   -- Stock-based compensation expense of US$18.8 million.

   -- Special Committee investigation and related expenses
      totaled approximately US$17.0 million for the three months
      ended July 31, 2007.

   -- Amortization of acquisition-related intangibles of
      US$15.3 million.

Because of limitations on the company's ability to issue equity-
based compensation prior to regaining compliance with its
reporting obligations under the federal securities laws, the
Boards of Directors of the company and certain of its
subsidiaries previously authorized and disclosed additional cash
compensation in lieu of equity-based compensation as a key
employee retention tool in the aggregate amount of approximately
US$61.9 million.  In the second quarter of fiscal 2007, US$15.0
million of this retention compensation was charged as an
expense, for a total of US$35.9 million charged through
July 31, 2007, and the company expects the balance to be
recorded in the current fiscal year ending January 31, 2008.

Workforce reduction and restructuring charges of US$14.8
million, including US$13.2 million related to the previously
announced reduction in workforce at Comverse, Inc.

Acquisition related charges of US$5.2 million, including US$4.8
million related to the acquisition by Verint of Witness Systems.
In-process R&D charges of US$5.6 million related to the
acquisition of Witness Systems.

                 About Comverse Technology

Comverse Technology, Inc., -- http://www.cmvt.com/-- (Pink
Sheets: CMVT.PK) through its Comverse, Inc. subsidiary, provides
software and systems enabling network-based multimedia enhanced
communication and billing services.  The company's Total
Communication portfolio includes value-added messaging,
personalized data and content-based services, and real-time
converged billing solutions.  Over 500 communication and content
service providers in more than 130 countries use Comverse
products to generate revenues, strengthen customer loyalty and
improve operational efficiency.  Other Comverse Technology
subsidiaries include: Verint Systems (VRNT.PK), which provides
analytic software-based solutions for communications
interception, networked video security and business
intelligence; and Ulticom (ULCM.PK), which provides service
enabling signaling software for wireline, wireless and Internet
communications.

In Latin America, Comverse has operations in Argentina, Brazil,
Mexico and Peru.

                        *     *     *

As reported in the Troubled Company Reporter on Feb. 5, 2007,
Standard & Poor's Ratings Services kept its 'BB-' corporate
credit and senior unsecured debt ratings on New York-based
Comverse Technology Inc. on CreditWatch with negative
implications, where they were placed on March 15, 2006.




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


COVENTRY HEALTH: Completes Florida Health Acquisition
-----------------------------------------------------
Coventry Health Care Inc. has completed its acquisition of
Florida Health Plan Administrators, LLC, owner of Vista
Healthplans.

Given the timing of the closing of the Vista transaction,
Coventry is increasing guidance for 2007 GAAP diluted earnings
per share to a range of US$3.95 to US$3.99.  Excluding the
US$0.04 debt refinancing charge incurred during the first
quarter, guidance for 2007 diluted earnings per share is a range
of US$3.99 to US$4.03.

Headquartered in Bethesda, Maryland, Coventry Health Care, Inc.
(NYSE: CVH) -- http://www.cvty.com/-- is a national managed
health care company operating health plans, insurance companies,
network rental/managed care and workers' compensation services
companies.  Coventry provides a full range of risk and fee-based
managed care products and services, including HMO, PPO, POS,
Medicare Advantage, Medicare Prescription Drug Plans, Medicaid,
Workers' Compensation services and Network Rental to a broad
cross section of individuals, employer and government-funded
groups, government agencies, and other insurance carriers and
administrators in all 50 states as well as the District of
Columbia and Puerto Rico.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America
on July 12, 2007, Moody's Investors Service affirmed Coventry
Health Care, Inc.'s ratings -- senior unsecured debt and
corporate family ratings at Ba1 and changed the outlook to
stable from positive.

As reported in the Troubled Company Reporter-Latin America on
March 21, 2007, Fitch Ratings has upgraded the Issuer Default
Rating of Coventry Health Care Inc. to 'BBB' from 'BB+'.
Existing senior notes are also upgraded to 'BBB-' from 'BB'.
Fitch also assigns a 'BBB-' rating to Coventry's recent issuance
of US$400 million of 5.95% senior unsecured notes.  Fitch said
the rating outlook is stable.

A.M. Best Co. has assigned a debt rating of "bb+" to Coventry
Health Care, Inc.'s US$400 million 5.95% senior unsecured notes,
which will mature in 2017.  The rating outlook is positive.
Coventry Health's and its subsidiaries' financial strength,
issuer credit and remaining debt ratings are unchanged.

As reported in the Troubled Company Reporter-Latin America on
March 19, 2007, Moody's Investors Service has assigned a Ba1
senior unsecured debt rating to Coventry Health Care, Inc.'s
(NYSE: CVH) issuance of US$400 million of new long term debt.
Moody's said the outlook on the rating is positive.


STEWART ENTERPRISES: Earns US$8.1 Mil. in Quarter Ended July 31
---------------------------------------------------------------
Stewart Enterprises Inc. reported US$8.1 million of net income
for the three months ended July 31, 2007, compared to US$7.3
million of net income for the same period in 2006.

Thomas J. Crawford, President and Chief Executive Officer,
stated, "The fiscal year continues to be a successful one for
our Company and our shareholders.  When we look at our key
metrics, which include funeral average revenue, funeral call
volume and cemetery property sales, we are continuing to perform
well.  During the quarter, we experienced solid increases in our
funeral averages and cemetery property sales.  While we are
disappointed our funeral calls were down about one half of one
percent from the prior quarter, the industry-wide trends are
showing larger funeral call decreases than the Company's
results.  Looking forward, we will continue to emphasize quality
growth and improving our return on the assets under our
stewardship.  We will challenge our thinking and inject new and
fresh ideas into the business practices and culture to improve
our operational performance, earnings potential, and long term
cash generating capability."

Thomas M. Kitchen, Chief Financial Officer, stated, "As we
assess our performance for the quarter, we think our core
businesses performed well with regard to our key operating
metrics for both the three and nine months.  We experienced an
overall increase in same-store average revenue per funeral
service of 2.4 percent for the quarter and 4.2 percent for the
nine months.  Our same-store funeral calls were down one half of
one percent for the quarter and down 2.6 percent on a year-to-
date basis.  We believe that there was a decline in deaths
across the industry and that our funeral businesses performed
well in light of these conditions.  On the cemetery side, gross
cemetery property sales increased US$0.9 million, or 3 percent,
for the quarter and US$6.0 million, or 8 percent, for the nine
months.  Also, during the quarter, we completed the sale of
US$250 million of convertible notes, which is going to
significantly decrease our future interest payments and improve
cash flow."

The company used approximately US$164 million of net proceeds
from the US$250 million convertible note offering completed in
June 2007 to prepay the remaining balance of its Term Loan B,
including accrued interest.  The company used the remainder of
the net proceeds from the transaction and the proceeds from the
sale of warrants to pay the net cost of call options and to
repurchase, concurrently with the offering, approximately
US$64.2 million in shares of Class A common stock in negotiated
transactions, purchasing 7.7 million shares.

Interest expense decreased US$0.9 million during the third
quarter of 2007 and US$3.0 million for the nine-month period.
The reductions in interest expense resulted from a decrease in
the average rate for the quarter and year-to-date periods due
primarily to additional interest incurred in the first nine
months of fiscal 2006 on the Company's 6.25 percent senior notes
as a result of the Company's inability to timely complete a
required exchange offer.

The company generated operating cash flow of US$22.3 million for
the third quarter of 2007 compared to US$27.0 million in the
same quarter of last year.  Recurring free cash flow was US$18.2
million during the third quarter of 2007 compared to US$22.2
million for the third quarter of fiscal year 2006.  The decrease
in operating and recurring free cash flow was due to US$3.4
million in net tax payments made during the third quarter of
2007 compared to US$1.7 million in net refunds received in the
third quarter of 2006 due to a net operating loss carry forward
utilized in that fiscal year.

There are two unusual items that impact the comparability of the
Company's financial results for fiscal 2007 and 2006.  During
the third quarter of last year, the company recorded US$2.4
million of funeral revenue and US$0.4 million of cemetery
revenue of business interruption insurance proceeds related to
Hurricane Katrina.  In addition, last year, while preparing the
Form 10-Q for the quarter ended July 31, 2006, the Company
concluded that it should make several adjustments relating to
prior accounting periods, which it recorded during the third
quarter of 2006.  For the quarter-to-date period in 2006, the
out of period adjustments increased total revenue US$3.1 million
and increased total costs US$4.4 million, which ultimately
decreased net earnings US$1.3 million (US$0.9 million after tax,
or 0.01 per diluted share).

The effective tax rate for the company's continuing operations
for the three months ended July 31, 2007, was 32.0 percent
compared to 30.5 percent for the same period in 2006.  During
the third quarter of 2007, earnings were impacted by a tax
benefit of US$0.8 million, or US$.01 per diluted share, which
was attributable to the completion of an audit by the
Commonwealth of Puerto Rico for tax periods 1999, 2000 and 2001.
Earnings during the third quarter of 2006 were impacted by a tax
benefit consisting of various items that net to US$0.6 million,
or US$.01 per diluted share.

The company recorded several items during the three and nine
months ended July 31, 2007 and 2006 that impacted earnings
including the early extinguishment of debt, hurricane related
charges, gains on dispositions and impairment losses and
separation pay.  The company is presenting adjusted earnings in
the table below to eliminate the effects of the specified items,
which are not comparable from one period to the next.

Mr. Crawford concluded, "The Company continued to perform well
during the third quarter.  We are very pleased to have further
strengthened our capital structure with the recent refinancing
and welcome the resulting reduction in interest.  While we are
pleased with our progress to date, we are not satisfied with
where we are.  We believe we can do better. We will manage our
portfolio of businesses at the rooftop level; we will strengthen
our sales and marketing effort with fresh thinking and improved
processes; and we will reinvest a portion of our interest
expense savings from the refinancing back into the business to
generate greater and more sustainable growth in the future."

Based in Jefferson, La., Stewart Enterprises Inc. provides
funeral and cemetery products and services in the death care
industry in the U.S. As of Oct. 31, 2006, the Company's
operations included 229 funeral homes and 143
cemeteries in 25 states in the U.S. and Puerto Rico.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 25, 2007, Moody's Investors Service affirmed the Ba3
Corporate Family Rating of Stewart Enterprises, Inc. and
assigned a Ba3 rating to the proposed US$250 million convertible
note offering.  Concurrently, Moody's raised the ratings on the
US$125 million senior secured revolver to Baa3 from Ba2 and on
the existing 6.25% senior notes to Ba3 from B1.  Moody's expects
to withdraw the Ba2 rating assigned to the US$162.8 million term
loan upon the closing of the refinancing.  Moody's said the
rating outlook is stable.




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


PETROLEOS DE VENEZUELA: Has US$797 Million Fund in Fonden
---------------------------------------------------------
Venezuelan state-oil holding company, Petroleos de Venezuela
S.A., has only US$797 million in the Macroeconomic Stabilization
Fund -- Fonden -- despite reporting a US$4.7 billion net profits
in 2006, El Universal reports.

The fund was established as a reserve in case oil prices would
decline, lowering revenues -- a characteristic in nations that
depend on sale of hydrocarbons, the same report explains.

El Universal says that instead of saving for lean periods, most
of the fund's money has been used to promote other agendas like
the social program spending of President Hugo Chavez.  The
company's item of expenditure and investment was increased
lately.  This is the case of Plan Siembra Petrolera, accounting
for approximately US$77 million up to 2012.

In addition, the state-oil firm has incurred a US$7.5 billion
liability through the issuance of notes to be paid in bolivars.

Fonden, according to El Universal, is Petroleos de Venezuela's
last resort in case another nationwide strike, like what
happened in 2002 and 2003, would paralyse operations
necessitating the import of fuel to meet the domestic market
needs.

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 12, 2007, Standard & Poor's Ratings
Services raised its long-term foreign currency corporate credit
rating on Petroleos de Venezuela S.A. or PDVSA to 'BB-' from
'B+'.  S&P said the rating was removed from CreditWatch.


PETROLEOS DE VENEZUELA: Inks Vengas & Tropigas Purchase Deals
-------------------------------------------------------------
Petroleos de Venezuela S.A. inked Aug. 30 an agreement for the
purchase of Vengas and Tropigas, the two major liquefied
petroleum gas companies in Venezuela, El Universal reports,
citing sources familiar with the matter.

Minister of Energy and company president, Rafael Ramirez,
confirmed the deal and said the purchase was part of the
organization of PDVSA Gas Popular (PDVSA People's Gas), a new
Petroleos de Venezuela subsidiary, El Universal says.

El Universal suggests that the purchase of the LPG companies
signals the end of "oligopoly" -- a market situation in which
each of a few producers affects but does not control the market.

Companies in the LPG market have faced higher losses over the
years due to frozen margins and prices, resulting to worker
dismissals, supply shortage, and equipment failure.  The energy
minister, despite mounting evidence of the crisis, declared that
"claims about frozen margins are biased, as we are talking
about a public service here," the Caracas daily relates.

Faced with certain economic suffocation, the LPG distributors
told the paper they would rather be nationalized than close
shop.

The energy ministry has not totally ignored the sector by
proposing to replace cylinders to help reduce the number of
units going out of service. In this regard, 300,000 new bottles
will be introduced in a 13 million-unit market, El Universal
states.

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

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


PETROLEOS DE VENEZUELA: Plans New Piping & Steel Factories
----------------------------------------------------------
Venezuelan state-owned oil firm Petroleos de Venezuela SA said
in a statement that the country's President Hugo Chavez has
ordered the construction of the Siderurgica Nacional steel
factory and the Empresa Socialista Planta de Tubos Sin Costura
piping facility.

Petroleos de Venezuela Vice President Asdrubal Chavez said on
the Alo Presidente talk show that new piping and steel factories
will let the firm continue with multiple oil and natural gas
projects, Business News Americas relates.

According to BNamericas, the factories will supply Petroleos de
Venezuela with piping, valves and steel.

Mr. Chavez told BNamericas that the two facilities will help
Petroleos de Venezuela reach its Siembra Petrolera goal of
producing over five million barrels per day by 2012.

The steel will be used for the construction of natural gas and
oil platforms for the coasts of Delta Amacuro and Sucre.  It
will also be used to build a new fleet of ships to ship crude,
BNamericas states.

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

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


                         ***********


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, Christian Toledo, Pamella Ritah Jala, Editors.

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

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed
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subscription or balance thereof are US$25 each.  For
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