TCRLA_Public/080115.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

         Tuesday, January 15, 2008, Vol. 9, Issue 10

                          Headlines

A R G E N T I N A

ALITALIA SPA: Air France-KLM Chief Holds Preliminary Talks
ARROW ELECTRONICS: Acquiring Indian Distribution Business Assets
DANA CORP: Asbestos Claimants File Appeal to Dana Plan
DELTA AIR: December 2007 System Traffic Increased by 3%
DELTA AIR: Mulling Possible Sale of Comair & Mergers

VERIFONE HOLDINGS: Teams with ArcSight for Compliance Automation

* ARGENTINA: Enarsa Launches Tender for Nine Small Thermo Plants


B E R M U D A

CLAYTON PARTNERS: Proofs of Claim Filing Deadline Is Jan. 21


B O L I V I A

* BOLIVIA: Yacimientos Petroliferos Reduces Gas Output


B R A Z I L

AAR CORP: To Buyback US$16.36 Million Senior Notes on Feb. 12
ALERIS INT'L: Concludes Sale of US Zinc Biz to Votorantim Metais
BANCO NACIONAL: Directors Okay BRL259-Mln Loan to Brasil Telecom
BRASIL TELECOM: Secures BRL259-Million Loan from Banco Nacional
BRASIL TELECOM: Telemar Talks Get Government Support

REALOGY CORP: Commences Exchange Offer for Three Senior Notes
SANYO ELECTRIC: To Pay FSA JPY8.3 Billion for Accounting Error

* BRAZIL: Petrobras Ranks Highest Market Value in Latin America


C A Y M A N   I S L A N D S

BREA EQUITY: Proofs of Claim Filing Is Until Jan. 21
BREA HOLDINGS: Proofs of Claim Filing Ends on Jan. 21
BREA INVESTMENTS: Proofs of Claim Filing Deadline Is Jan. 21
COMMERCIAL EQUITY: Proofs of Claim Filing Ends on Jan. 21
COMMERCIAL INVESTMENTS: Proofs of Claim Filing Is Until Jan. 21

LAGUNA EQUITY: Proofs of Claim Filing Ends on Jan. 21
LAGUNA HOLDINGS: Proofs of Claim Filing Deadline Is Jan. 21
LAKEHILL INVESTMENTS: Proofs of Claim Filing Ends on Jan. 21
LANDMARK EQUITY: Proofs of Claim Filing Deadline Is Jan. 21
MARCUS EQUITY: Proofs of Claim Filing Ends on Jan. 21

MARCUS HOLDINGS: Proofs of Claim Filing Deadline Is Jan. 21
ORANGE EQUITY: Proofs of Claim Filing Is Until Jan. 21
ORANGE INVESTMENTS: Proofs of Claim Filing Ends on Jan. 21
PARMALAT SPA: Deloitte Wants to Settle with Bondholder Group
THIRTEEN MARINE: Proofs of Claim Filing Deadline Is Jan. 21

WESTSHORE HOLDINGS: Proofs of Claim Filing Deadline Is Jan. 21


C H I L E

EASTMAN KODAK: Earns US$37 Million in 2007 Third Quarter
ROCK-TENN CO: Southern Buyout Deal Cues Moody's To Review Rating
ROCK-TENN CO: S&P Places BB+ Corp. Credit Rating on WatchNeg


C O L O M B I A

PARKER DRILLING: Updates Kazakhstan Tax Case
POLYONE CORP: Completes Acquisition of Ngai Hing PlastChem
SOLUTIA INC: Joins Panel in Showing Cross-Appeal Issues v. BNY


D O M I N I C A N   R E P U B L I C

* DOMINICAN REPUBLIC: SECCI To Develop Biofuels Production Study


E C U A D O R

PETROECUADOR: Buys Jet from Embraer
PETROECUADOR: Reports US$4.012 Billion 2007 Oil Export Revenues


E L   S A L V A D O R

ALCATEL-LUCENT: Signs Turnpike Deal Connecting Hawaii to Tahiti

* EL SALVADOR: SECCI Developing Biofuels Production Study


G U A T E M A L A

BANCO G&T: S&P Affirms BB-/B Foreign Counterparty Credit Rating
BANCO INDUSTRIAL: S&P Affirms BB-/B Counterparty Credit Rating


H A I T I

* HAITI: SECCI to Develop Biofuels Production Feasibility Study


J A M A I C A

AIR JAMAICA: Gov't Denies Virgin Atlantic Lead in Bidding
NATIONAL WATER: St. Catherine Dep't May File Suit Against Firm

* JAMAICA: Won't Sell 20% Stake in Jamaica Public Service Co.


M E X I C O

AXTEL SAB: Selects Motorola as First WiMAX Technology Vendor
DURA AUTOMOTIVE: Posts US$12,399,000 Net Loss in November 2007
EL POLLO: S&P Affirms B- Corporate Credit Rating
FIRST DATA: Moody's Drops Untendered Stub Notes' Rating to Caa1
GLOBAL POWER: Elects David L. Willis as CFO & Sr. Vice Pres.

GREENBRIER CO: Earns US$2.6 Million in Quarter Ended Nov. 30
GRUPO MEXICO: Labor Board Says Cananea Strike Illegal
HASBRO INC: Inks Licensing Agreement with Thorley Industries
HILLMAN COS: CEO Reports Preferred Securities Cash Distribution
TELE NORTE: Brasil Telecom Talks Get Government Support

URS CORP: Brings In Thomas Zarges as Washington Unit President
VITRO SAB: Inks Agreement with Electric Energy


P E R U

QUEBECOR WORLD: Gets CDN$400-Million Rescue Financing Proposal


P U E R T O   R I C O

DENNY'S CORP: Sept. 26 Balance Sheet Upside-Down by US$201.1 Mln


V E N E Z U E L A

CHRYSLER LLC: Confirms OEM Product Agreement with Nissan Motor
CHRYSLER LLC: Working with Midwest Entities in Research Project
PETROLEOS DE VENEZUELA: Implements Drilling Technology in RG 278

* VENEZUELA: Chavez Orders Halt on Asphalt Exports
* VENEZUELA: Gets US$50-Million Loan for Water Treatment Works
* Large Companies with Insolvent Balance Sheets


                          - - - - -


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


ALITALIA SPA: Air France-KLM Chief Holds Preliminary Talks
----------------------------------------------------------
Air France-KLM Group S.A. CEO Jean-Cyril Spinetta has held
preliminary meetings with Alitalia S.p.A. executives, government
officials and trade unions over its planned acquisition of
Italy's 49.9% stake in the national carrier, various reports
say.

"[I had] very useful meetings," Mr. Spinetta was quoted by
Bloomberg News as saying.  "We're carrying on the dossier."

During the meetings, Mr. Spinetta confirmed plans to:

   -- acquire 100% of the shares of Alitalia through an
      exchange offer;

   -- acquire 100% of Alitalia convertible bonds; and

   -- immediately inject at least EUR750 million into
      Alitalia through a capital increase, that will be open to
      all shareholders and be fully underwritten by Air France.

Mr. Spinetta also confirmed plans to cut 1,700 jobs, Reuters
relates.

The Air France CEO, however, downplayed reports that Italy would
hold a 3% stake in the merged Air France-Alitalia after a share-
swap deal is completed, Reuters reports.

Mr. Spinetta added that acquiring AZ Servizi, Alitalia's ground
services and maintenance unit, would be based on "economic and
social" considerations, Reuters added.

                         Milan Plans

Mr. Spinetta, on a press conference, defended plans to downsize
Alitalia's operations in Milan's Malpensa airport, and assured
that the national carrier will not abandon its slots in the
northern hub, Agenzia Giornalistica Italia reports.

"The big majority of Alitalia's losses come from Malpensa," Mr.
Spinetta was quoted by Reuters as saying. "Continuing to ignore
this fact would bring about the end of Alitalia."

Mr. Spinetta revealed that should the French carrier acquire
100% of Alitalia shares, Air France would list itself in the
Milan bourse.

Renata Polverini, head of the UGL labor union, said Mr. Spinetta
showed "flexibility" on the issue of downscaling Milan
operations and AZ Servizi plans, the airline's ground services
and maintenance unit, Bloomberg News says.

                       About Alitalia

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

Despite a EUR1.4 billion state-backed restructuring in 1997,
Alitalia posted net losses of EUR256 million and EUR907 million
in 2000 and 2001 respectively.  Alitalia posted EUR93 million in
net profits in 2002 after a EUR1.4 billion capital injection.
The carrier booked annual net losses of EUR520 million in 2003,
EUR813 million in 2004, EUR168 million in 2005, and
EUR625.6 million in 2006.

Italian Transport Minister Alessandro Bianchi has warned that
Alitalia may file for bankruptcy if the current attempt to sell
the government's 49.9% stake fails.


ARROW ELECTRONICS: Acquiring Indian Distribution Business Assets
----------------------------------------------------------------
Arrow Electronics Inc. agreed to acquire all of the assets
related to the franchise components distribution business of
Hynetic Electronics and Shreyanics Electronics in India,
effective Jan. 1, 2008.  Privately owned, Hynetic Electronics
and Shreyanics Electronics are leading electronic component
distributors in India.

"I am delighted to add the components distribution business of
Hynetic to our expanding franchise in the Asia Pac region,
further strengthening our leadership position in the fast-
growing Indian marketplace.  The Hynetic business is similar to
Arrow's, with its demand-creation business model and strong
engineering capabilities, and we anticipate meaningful synergies
between our two businesses.  Hynetic's complementary linecard
and experienced sales professionals will allow us to expand our
product portfolio and offer improved services and support to our
business partners," said Michael J. Long, president of Arrow
Global Components.

"This acquisition will be beneficial to Arrow, with an expanded
customer base focusing on the rapidly growing small- and medium-
sized market and additional strategic product lines, which are
critical for Arrow to further expand market share in India.  At
the same time, Hynetic's customers and suppliers gain instant
access to Arrow's specialized expertise, technical resources,
supply chain solutions and extensive logistics capabilities,"
said Peter Kong, president of Arrow Asia Pacific.

                   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.

                        *     *     *

Arrow Electronics senior subordinated stock continues to carry
Moody's Investors Service's Ba1 rating.  The company's senior
preferred stock is rated at Ba2.


DANA CORP: Asbestos Claimants File Appeal to Dana Plan
------------------------------------------------------
A group, known as the ad hoc committee of asbestos claimants, on
Jan. 3, 2008, filed an appeal with the U.S. Bankruptcy Court in
Manhattan on the confirmation of Dana Corp.'s Plan of
Reorganization, Associated Press reports.

This group represents "tens of thousands" of people who claim
they were injured by asbestos in Dana's products.

The committee has argued that Dana's bankruptcy plan did not set
aside enough money to settle all the asbestos personal-injury
claims against the Company.

In December 2007, the Company said it had US$240 million in cash
and other assets to cover future asbestos and environmental
contamination liabilities. The Company said it has enough money
to satisfy all the claims based on the number of active cases
pending against it and the number of dismissed cases.

Dana spokesman David Lilly said the appeal "was not unexpected."
He said the appeal will not affect Dana's plans to emerge from
Chapter 11 protection by the end of January 2008.

Dana reached settlements with some asbestos personal-injury
claimants as it worked its way through the bankruptcy process.
The Company agreed to pay a total of US$2 million to a group of
about 7,500 who claim they were injured by asbestos in Dana
products. Dana's plan allows other asbestos claimants to retain
their right to sue Dana once the company emerges from
bankruptcy.

The Company filed for bankruptcy in March 2006 amid a downturn
in the vehicle manufacturing industry. Its plan was confirmed by
Judge Burton Lifland in December 2007. The plan calls for
unsecured creditors to be repaid between 72 percent and 86
percent on their claims.


Based in Toledo, Ohio, Dana Corporation -- http://www.dana.com/
-- designs and manufactures products for every major vehicle
producer in the world, and supplies drivetrain, chassis,
structural, and engine technologies to those companies.  Dana
employs 46,000 people in 28 countries.  Dana is focused on being
an essential partner to automotive, commercial, and off-highway
vehicle customers, which collectively produce more than 60
million vehicles annually.

Dana has facilities in China in the Asia-Pacific, Argentina in
the Latin American region and Italy in Europe.

The company and its affiliates filed for chapter 11 protection
on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354).  As of
Aug. 31, 2007, the Debtors listed $6,878,000,000 in total assets
and US$7,551,000,000 in total debts resulting in a total
shareholders' deficit of US$673,000,000.

Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day,
in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq.,
Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in
Cleveland, Ohio, represent the Debtors.  Henry S. Miller at
Miller Buckfire & Co., LLC, serves as the Debtors' financial
advisor and investment banker.  Ted Stenger from AlixPartners
serves as Dana's Chief Restructuring Officer.

Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel
LLP, represents the Official Committee of Unsecured Creditors.
Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel
to the Official Committee of Equity Security Holders.  Stahl
Cowen Crowley, LLC serves as counsel to the Official Committee
of Non-Union Retirees.

The Debtors filed their Joint Plan of Reorganization on
Aug. 31, 2007.  On Oct. 23, 2007, the Court approved the
adequacy of the Disclosure Statement explaining their Plan.  The
Court confirmed the Debtor's Plan on Dec. 26, 2007.


DELTA AIR: December 2007 System Traffic Increased by 3%
-------------------------------------------------------
Delta Air Lines Inc. said its system traffic for December 2007
increased 3.0% from December 2006 on a capacity increase of
3.1%.  Delta's system load factor was 77.7% in December 2007,
flat from the same period last year.

Strong demand for Delta's international product continued during
December 2007, with traffic increasing 16.4% year over year on a
13.3% increase in capacity.  This resulted in a record December
international load factor of 79.9%, up 2.1 points compared to
December 2006.  Domestic traffic in December 2007 decreased 2.8%
year over year on a capacity decrease of 1.3%.  Domestic load
factor in December 2007 was 76.6%, down 1.3 points from the same
period a year ago.

"In December, consolidated unit revenues showed solid year over
year improvement," said Glen Hauenstein, Delta's executive vice
president for Network Planning and Revenue Management.
International unit revenues demonstrated continued strength with
significant increases in both yield and traffic, while domestic
yields continued to strengthen as pricing actions implemented to
offset higher fuel costs translated to higher yields."

During December 2007, Delta operated its schedule at a 98.2%
completion rate compared to 99.0% in December 2006.  Delta
boarded 8.6 million passengers during the month of December
2007, a decrease of 2.0% from December 2006.

                      About Delta Air

Based in Atlanta, Georgia, Delta Air Lines Inc. (NYSE:DAL) --
http://www.delta.com/-- is the world's second-largest airline
in terms of passengers carried and the leading U.S. carrier
across the Atlantic, offering daily flights to 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.

The Debtors filed a chapter 11 plan of reorganization and
disclosure statement explaining that plan on Dec. 19, 2007.  On
Jan. 19, 2007, they filed revisions to the plan and disclosure
statement, and submitted further revisions to the plan on
Feb. 2, 2007.  On Feb. 7, 2007, the Court approved the Debtors'
disclosure statement.  In April 25, 2007, the Court confirmed
the Debtors' plan.  That plan became effective on
April 30, 2007.  The Court entered a final decree closing 17
cases on Sept. 26, 2007.

As of Sept. 30, 2007, the company's balance sheet showed total
assets of US$32.7 billion and total liabilities of US$23
billion, resulting in a US$9.7 billion stockholders' equity.  At
Dec. 31, 2006, deficit was US$13.5 billion.

(Delta Air Lines Bankruptcy News, Issue Number 86; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)

                         *     *     *

As reported in the Troubled Company Reporter Oct. 18, 2007,
Standard & Poor's Ratings Services affirmed its ratings on Delta
Air Lines Inc. (B/Positive/--) and revised the rating outlook to
positive from stable.  The outlook revision is based on
continued strong earnings, cash flow generation, and debt
reduction.


DELTA AIR: Mulling Possible Sale of Comair & Mergers
----------------------------------------------------
Delta Air Lines Inc. is studying a possible sale of its regional
jet service Comair while a board panel reviews merger
possibilities, Bloomberg News reports.

In an interview with Bloomberg, Delta spokeswoman Betsy Talton
said the airline is evaluating options to sell its regional
unit, "but no decision has been made."

Chief Executive Officer Richard Anderson projected that the
Board will decide on the sale in October 2007; however, no
updates as of this quarter have been disclosed.

Ms. Talton declined to comment on the progress of the Board
Committee regarding shareholder pressure to boost stock value,
Bloomberg says.

The Financial Times points Delta's delay on the Comair decision
to the airline's consideration of a merger with United Air Lines
Corporation or another competitor.

As previously reported, investor Pardus Capital Management LP,
in November 2007, urged Delta and United to merge.  The hedge
fund cited the merger's necessity amid skyrocketing jet-fuel
prices.

Unidentified people familiar with the matter confirmed that
Delta asked the board panel and its merger advisers, Merrill
Lynch & Co. and Greenhill & Co., to come up with decisions.
Thereafter, JPMorgan Chase & Co., will have to act on the
options already discussed for Comair, the Financial Times said.

                       About Delta Air

Based in Atlanta, Georgia, Delta Air Lines Inc. (NYSE:DAL) --
http://www.delta.com/-- is the world's second-largest airline
in terms of passengers carried and the leading U.S. carrier
across the Atlantic, offering daily flights to 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.

The Debtors filed a chapter 11 plan of reorganization and
disclosure statement explaining that plan on Dec. 19, 2007.  On
Jan. 19, 2007, they filed revisions to the plan and disclosure
statement, and submitted further revisions to the plan on
Feb. 2, 2007.  On Feb. 7, 2007, the Court approved the Debtors'
disclosure statement.  In April 25, 2007, the Court confirmed
the Debtors' plan.  That plan became effective on
April 30, 2007.  The Court entered a final decree closing 17
cases on Sept. 26, 2007.

As of Sept. 30, 2007, the company's balance sheet showed total
assets of US$32.7 billion and total liabilities of US$23
billion, resulting in a US$9.7 billion stockholders' equity.  At
Dec. 31, 2006, deficit was US$13.5 billion.

(Delta Air Lines Bankruptcy News, Issue Number 86; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)

                        *     *     *

As reported in the Troubled Company Reporter Oct. 18, 2007,
Standard & Poor's Ratings Services affirmed its ratings on Delta
Air Lines Inc. (B/Positive/--) and revised the rating outlook to
positive from stable.  S&P said the outlook revision is based on
continued strong earnings, cash flow generation, and debt
reduction.


VERIFONE HOLDINGS: Teams with ArcSight for Compliance Automation
----------------------------------------------------------------
VeriFone Holdings Inc. has entered into a worldwide partnership
with ArcSight, aimed at enabling merchants in retail and
petroleum markets to proactively protect cardholder data against
breaches, insider threats, and non-compliance risk across the
Payment Card Industry Data Security Standards rules and
regulations.

As part of the partnership, VeriFone's sales force will join
with ArcSight's to introduce merchants from the VeriFone
customer base that can directly benefit from the ArcSight PCI
Protection Suite.

"PCI compliance is a nightmare-issue for companies struggling to
keep up with evolving PCI security requirements, which are
difficult and costly to implement, maintain, and monitor across
distributed networks," said Jeff Wakefield, VeriFone vice
president of marketing, Integrated Systems.  "The ArcSight
offering directly addresses all 12 PCI DSS mandates and provides
a real-time monitoring and early-warning breach detection
system, and is a key part of VeriFone's initiative to both
educate and assist the industry about payment security
compliance."

"This partnership brings ArcSight's proven and scalable
technology solution to VeriFone's global customer base of Level
1 and 2 merchants that desire to achieve PCI Compliance and
protect their brand and customer information," said Tom Reilly,
president and COO of ArcSight.  "ArcSight is fortunate to
partner with VeriFone, a world class organization committed to
the success of their customers and partners."

The ArcSight PCI Protection Suite is a comprehensive, scalable
and cost-effective solution for protecting cardholder data and
monitoring ongoing PCI compliance.  Level 1 and 2 merchants
across the retail, transportation, telecommunications, medical,
and financial markets have already selected the ArcSight PCI
Protection Suite to secure their customers against the growing
global threats to cardholder identity and data privacy.  Level 1
and Level 2 merchants that are in interested in the solution can
contact either their VeriFone or ArcSight local representative.

                       About ArcSight

ArcSight -- http://www.arcsight.com/-- is a leading provider of
security and compliance solutions that intelligently identify
and mitigate business risk and deliver a centralized view of
enterprise-wide events across heterogeneous infrastructures.
This real time and historic view into external attacks, insider
threats and regulatory compliance provides enterprises, MSSPs
and government agencies with the intelligence and response
capabilities required to effectively protect and manage their
networks and their businesses.  ArcSight is a trademark of
ArcSight, Inc.

                       About VeriFone

VeriFone Inc. is headquartered in Santa Clara, California, and
is a global market leader in the development and sale of point-
of-sale electronic payment systems.  The company has operations
in Argentina, Australia, Brazil, China, France, India, Malaysia,
Poland, the United Kingdom, the United States, among others.

                        *     *     *

As reported in the Troubled Company Reporter on Sept. 29, 2006,
Moody's Investors Service has affirmed the Corporate Family
Rating of B1 of VeriFone and revised the rating outlook to
stable from negative.  At the same time, Moody's assigned
ratings to new bank credit facilities that VeriFone will use to
finance its pending acquisition of Lipman Electronic Engineering
Ltd.


* ARGENTINA: Enarsa Launches Tender for Nine Small Thermo Plants
----------------------------------------------------------------
Business News Americas reports that Argentine state-owned energy
firm Enarsa has launched a tender for nine small thermo plants.

According to BNamericas, the plants will be built in these
provinces:

          -- Chaco province,
          -- Santa Fe,
          -- Cordoba, and
          -- Buenos Aires.

BNamericas notes that data packages started to be sold on Jan.
11 at Enarsa's Buenos Aires offices.  Offers will be accepted
until 11:30 a.m. on Jan. 22, and will be opened at 12 noon on
the same day.

"We're not yet sure about the total value of the tender.  The
last tender we had for similar plants showed a great variety of
options including purchasing, renting and leasing.  We decided
to leave the tender open to all of the opportunities and will
pick the most convenient one later," Enarsa spokesperson Carlos
Davidson admitted to BNamericas.

As reported in the Troubled Company Reporter-Latin America on
Dec. 26, 2007, Standard & Poor's Ratings Services assigned B+
long-term sovereign local and foreign currency ratings and B
short-term sovereign local and foreign long-term ratings on
Argentina.  Standard & Poor's also placed 4 sovereign foreign
currency recovery rating and a BB transfer and convertibility
assessment rating.  Standard & Poor's says the outlook for these
ratings is stable.

Fitch Ratings assigned these ratings on Argentina:

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




=============
B E R M U D A
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CLAYTON PARTNERS: Proofs of Claim Filing Deadline Is Jan. 21
------------------------------------------------------------
Clayton Partners Limited's creditors are given until
Jan. 21, 2008, to prove their claims to Peter C.B. Mitchell and
Nigel J.S. Chatterjee, the company's liquidator, or be excluded
from receiving any distribution or payment.

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

Clayton Partners' shareholder decided on Dec. 31, 2007, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.

The liquidators can be reached at:

         Peter C.B. Mitchell
         Nigel J.S. Chatterjee
         PricewaterhouseCoopers Advisory Limited
         P.O. Box HM 1171
         Hamilton, Bermuda HM EX




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


* BOLIVIA: Yacimientos Petroliferos Reduces Gas Output
------------------------------------------------------
Bolivian state-run oil firm Yacimientos Petroliferos Fiscales
Bolivianos' head Guillermo Aruquipa told Business News Americas
that gas production in the country was temporarily reduced.

According to BNamericas, Mr. Aruquipa said it was due to gas
takes from Argentina and Brazil.

Bolivia is supplying about 3.1 million cubic meters per day to
Argentina.  The supply contract calls for up to 7.7 million
cubic meters per day, Mr. Aruquipa told Bolivian state news
agency Agencia Boliviana de Informacion.

BNamericas notes that Brazil has asked about 28 million cubic
meters per day -- two million cubic meters per day less than the
agreed amount.

Mr. Aruquipa told BNamericas that gas demand from Argentina and
Brazil, along with Bolivian consumption, reaches almost 35.8
million cubic meters per day against a nearly 40 million cubic
meters per day output.

BNamericas relates Bolivian hydrocarbons minister Carlos
Villegas will meet with Argentine federal planning minister
Julio de Vido on Jan. 18 in Buenos Aires to talk about gas
issues.

The two ministers meeting will be followed by that of the heads
of state of Bolivia, Argentina, and Brazil, BNamericas states.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Dec. 26, 2007, Standard & Poor's Ratings Services has assigned
B- long-term sovereign local and foreign currency ratings and C
short-term sovereign local and foreign currency ratings on
Bolivia.




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


AAR CORP: To Buyback US$16.36 Million Senior Notes on Feb. 12
-------------------------------------------------------------
AAR Corporation will redeem on Feb. 12, 2008, in full its 2.875%
convertible senior notes due Feb. 1, 2024.  The aggregate
principal amount of the notes outstanding is approximately
US$16.36 million.

The notes will be redeemed at a price of 100.958% of the
principal amount thereof, plus accrued and unpaid interest to
the redemption date.

On or prior to 5:00 p.m., Eastern Time, on Feb. 11, 2008,
holders may convert their notes into shares of the company's
common stock at a conversion price of approximately US$18.59 per
share of common stock, which is equal to a conversion rate of
approximately 53.7924 shares of common stock per US$1,000
principal amount of notes.

Cash will be paid in lieu of fractional shares.  The last
reported sale price of the company's common stock on the on the
New York stock exchange, as of Jan. 8, 2008, was US$31.25 per
share.

Any notes not converted on or before on Feb. 11, 2008, will be
automatically redeemed on Feb. 12, 2008, after which interest
will cease to accrue.

A notice of redemption is being mailed to all registered holders
of the notes.  Copies of the notice of redemption may be
obtained from the paying and redemption agent, U.S. Bank
National Association by calling Mr. Richard Prokosch at 651-495-
3918.

                       About AAR Corp.

Headquartered in Wood Dale, Illinois, AAR Corp. (NYSE: AIR) --
http://www.aarcorp.com/-- provides products and services to the
worldwide aerospace and defense industry.  With facilities and
sales locations around the world, AAR uses its business model to
serve aviation and defense customers through four operating
segments: aviation supply chain; maintenance, repair and
overhaul; structures and systems and aircraft sales and leasing.
In Asia Pacific, the company has offices in Singapore, China,
Japan and Australia.  In Latin America, the company has a sales
office in Rio de Janeiro, Brazil.

                        *     *     *

AAR Corporation continues to carry Moody's Investors Service's
'Ba3' long-term corporate family rating, which was assigned on
November 2006.


ALERIS INT'L: Concludes Sale of US Zinc Biz to Votorantim Metais
----------------------------------------------------------------
Aleris International, Inc. has completed the sale of its Zinc
business, which operates under the name US Zinc, to affiliates
of Votorantim Metais Ltda. for US$295 million with certain
adjustments for working capital and other items.  The company
will use net proceeds from the divestiture to reduce outstanding
debt.

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

                        *     *     *

As reported in the Troubled Company Reporter on Sept. 21, 2007,
Standard & Poor's Ratings Services revised its outlook on Aleris
International Inc. to negative from stable.  At the same time
S&P affirmed its 'B+' corporate credit rating and the other
ratings on the company.  Concurrently, S&P assigned a 'B-'
rating to the company's recent US$105 million 9% senior notes
due 2014, which are an add-on to the company's existing US$600
million 9% senior notes due 2014.


BANCO NACIONAL: Directors Okay BRL259-Mln Loan to Brasil Telecom
----------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social's directors
have approved a BRL259 million financing to Brasil Telecom
Celular S.A.  The funds will be destined to company investment
program (2007/2009), which contemplates modernization of the
network, to meet increased traffic, the offering of new services
and for improvements in service to users.

The Bank's support is equivalent to 49.83% of the total
investment, of BRL519.9 million.  The company's program includes
the acquisition of stations to improve the quality of mobile
service coverage and traffic capacity (voice and data), besides
investments in infrastructure expansion and acquisition of
equipment to ensure a better level of signal for voice and data
communication.

Since the sector privatization, in 1998, until December 2007,
BNDES telecommunications department approved BRL7.9 billion
financings to mobile phone companies. This amount represents 35%
BRL22 billion.

Brasil Telecom Celular S.A is a full subsidiary of Brasil
Telecom and operates in the region which comprehends the states
of Acre, Rond“nia, Mato Grosso, Mato Grosso do Sul, Tocantins,
Goias, Parana, Santa Catarina and Rio Grande do Sul, besides the
Federal District.

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.

                        *     *     *

Banco Nacional currently carries a Ba2 foreign long-term bank
deposit rating from Moody's, and a BB+ long-term foreign issuer
credit rating from Standards and Poor's.  The ratings were
assigned in August and May 2007, respectively.


BRASIL TELECOM: Secures BRL259-Million Loan from Banco Nacional
---------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social's directors
have approved a BRL259 million financing to Brasil Telecom
Celular S.A.  The funds will be destined to company investment
program (2007/2009), which contemplates modernization of the
network, to meet increased traffic, the offering of new services
and for improvements in service to users.

The Bank's support is equivalent to 49.83% of the total
investment, of BRL519.9 million.  The company's program includes
the acquisition of stations to improve the quality of mobile
service coverage and traffic capacity (voice and data), besides
investments in infrastructure expansion and acquisition of
equipment to ensure a better level of signal for voice and data
communication.

Since the sector privatization, in 1998, until December 2007,
BNDES telecommunications department approved BRL7.9 billion
financings to mobile phone companies. This amount represents 35%
BRL 22 billion.

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

                        *     *     *

To date, Brasil Telecom carries Moody's Investors Service's Ba1
senior unsecured and credit default swap ratings.


BRASIL TELECOM: Telemar Talks Get Government Support
----------------------------------------------------
Brasil Telecom's sale negotiations with Oi, fka Tele Norte Leste
Participacoes, is getting the Brazilian government's support in
a bid to limit control exerted by foreign-owned telecom firms in
the market.

The Financial Times says that Oi's US$2.7-billion purchase of
Brasil Telecom will prevent a Telefonica-Telmex dominance in the
industry.  Telefonica SA is a Spanish telcom giant while Telmex
is owned by Mexican bililonaire Carlos Slim, the world's richest
man.

The merging of the two local telcos will strengthen their
position in the market and will allay the government's fears
that separately, each company is no match for the Spanish and
Mexican duo, the FT says.

"The Oi-BrT merger would create a roughly level playing field
where none of the three companies dominate," Ricardo Arajjo
Silva, a telecoms analyst at Banco Ita£ in Sao Paulo told the
FT.

Business News Americas said that under the deal, Telemar Norte
offers BRL4.8 billion for holding company Solpart, which
controls Brasil Telecom.

Solpart is controlled by Citigroup, Opportunity Asset Management
and Brazilian pensin funds, news daily Valor Economico says.

Telemar Norte is controlled by La Fonte, Andrade Gutierrez, GP
Investimentos, pension funds, and Brazilian development bank
BNDES.

While the deal may face antitrust problems, analysts said in
reports that legislative changes will be made to accommodate the
merger.

                    About Telemar Norte

Headquartered in Rio de Janeiro, Brazil, Tele Norte Leste
Participacoes SA -- http://www.telemar.com.br-- is a provider
of fixed-line telecommunications services in South America.  The
company markets its services under its Telemar brand name.  Tele
Norte's subsidiaries include Telemar Norte Leste SA; TNL PCS SA;
Telemar Internet Ltda.; and Companhia AIX Participacoes SA.

                    About Brasil Telecom

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

                        *     *     *

To date, Brasil Telecom carries Moody's Investors Service's Ba1
senior unsecured and credit default swap ratings.


REALOGY CORP: Commences Exchange Offer for Three Senior Notes
-------------------------------------------------------------
Realogy Corporation has commenced its exchange offer to all
holders of its:

   -- US$1.7 billion principal amount of Senior Notes due 2014;

   -- US$550 million principal amount of Senior Toggle Notes due
      2014; and

   -- US$875 million principal amount of Senior Subordinated
      Notes due 2015 to exchange their privately held
      Outstanding Notes for new publicly registered notes
      pursuant to its Registration Statement on Form S-4 that
      was declared effective by the Securities and Exchange
      Commission.

The Exchange Notes are substantially identical to the
Outstanding Notes except that the Exchange Notes will be freely
tradable by persons who are not affiliated with Realogy and will
not contain terms relating to registration rights.

The exchange offer and withdrawal rights will expire at
5:00 p.m., New York City time, on Feb. 8, 2008, unless
terminated or extended by Realogy in its sole discretion.

The exchange offer is being made only by means of a prospectus,
a copy of which may be obtained upon request by holders of the
Outstanding Notes from:

     Wells Fargo Bank, National Association
     Attn: Bondholder Communications
     608 2nd Avenue S
     Minneapolis, MN 55402
     Tel (800) 344-5128

                   About Realogy Corporation

Headquartered in Parsippany, New Jersey, Realogy Corporation -
http://www.realogy.com/-- is comprised of the former real
estate holdings of Cendant nka Avis Budget Group.  Included in
Realogy's stable of companies are Century 21 Real Estate,
Coldwell Banker Real Estate, ERA, NRT Incorporated, and
Sotheby's International Realty Affiliates.  Its Title Resource
Group fka Cendant Settlement Services, offers title settlement
services for commercial and residential customers, and its
Cartus unit facilitates employee relocation services.  The
company operates in Australia, Brazil and France.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Dec. 13, 2007, Moody's Investors Service assigned an SGL-3
speculative grade liquidity rating to Realogy Corporation and
changed the rating outlook from stable to negative.  At the same
time, Moody's affirmed the B3 corporate family rating and all
other credit ratings.


SANYO ELECTRIC: To Pay FSA JPY8.3 Billion for Accounting Error
--------------------------------------------------------------
Sanyo Electric Co., Ltd. said it will pay the Financial Services
Agency an JPY8.3-million fine for issuing false financial
statements over several years, Kyodo News reports.

Last month, Sanyo, who apologized to its shareholders for
causing trouble, corrected its unconsolidated earnings for the
years from fiscal 2000 and admitted that it had paid around
JPY28 billion in illegal dividends when the profits necessary to
justify the payments were lacking, relates Kyodo News.

According to the report, the Securities and Exchange
Surveillance Commission recommended that the FSA fine Sanyo
JPY8.3 billion in the form of a surcharge.

The Troubled Company Reporter-Asia Pacific reported on
Dec. 27, 2007, that Sanyo has amended its non-consolidated
financial statements for the fiscal years 2000-2005 in
conformance to practical business guidelines related to
accounting standards and financial commodities accounting.

Kyodo News states that the earnings corrections were necessary
after Sanyo reassessed appraisal losses on shares of its
semiconductor and liquid crystal display affiliates.

On Dec. 25, 2007, Sanyo's stock was put under supervision for
delisting by the Tokyo Stock Exchange after the correction
announcement, Kyodo News adds.

                    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: Petrobras Ranks Highest Market Value in Latin America
---------------------------------------------------------------
Brazilian state-run oil firm Petroleo Brasileiro SA aka
Petrobras is ranked as the company with the highest market value
in Latin America, a study carried out by the Economatica
consultancy firm.  According to the study, the company is the
leader among the 25 publicly held corporations with the highest
value in the continent.  As compared to the 25 biggest American
corporations, Petrobras holds the fifth place.

Petrobras' market value surged 125.3% in 12 months, topping-out
at US$242.7 billion in late 2007.

Also according to the consultancy's study, the Cia. Vale do Rio
Doce ranks second, surpassing Mexican outfit America Movil,
which holds the third place.  Among the 25 companies the study
listed, 13 are Brazilian.

                  About Petroleo Brasileiro

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

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Dec. 26, 2007, Standard & Poor's Ratings Services assigned BB+
long-term sovereign foreign currency rating and B short-term
sovereign foreign currency rating on Brazil.

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


BREA EQUITY: Proofs of Claim Filing Is Until Jan. 21
----------------------------------------------------
Brea Equity Limited's creditors are given until Jan. 21, 2008,
to prove their claims to Westport Services Ltd., the company's
liquidator, or be excluded from receiving any distribution or
payment.

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

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

The liquidator can be reached at:

         Westport Services Ltd.
         Attention: Bonnie Willkom
         P.O. Box 1111, Grand Cayman KY1-1102
         Cayman Islands
         Telephone: (345)-949-5122
         Fax: (345)-949-7920


BREA HOLDINGS: Proofs of Claim Filing Ends on Jan. 21
-----------------------------------------------------
Brea Holdings Limited's creditors are given until Jan. 21, 2008,
to prove their claims to Westport Services Ltd., the company's
liquidator, or be excluded from receiving any distribution or
payment.

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

Brea Holdings' shareholders agreed on Nov. 20, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

         Westport Services Ltd.
         Attention: Bonnie Willkom
         P.O. Box 1111, Grand Cayman KY1-1102
         Cayman Islands
         Telephone: (345)-949-5122
         Fax: (345)-949-7920


BREA INVESTMENTS: Proofs of Claim Filing Deadline Is Jan. 21
------------------------------------------------------------
Brea Investments Limited's creditors are given until
Jan. 21, 2008, to prove their claims to Westport Services Ltd.,
the company's liquidator, or be excluded from receiving any
distribution or payment.

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

Brea Investments' shareholders agreed on Nov. 20, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

         Westport Services Ltd.
         Attention: Bonnie Willkom
         P.O. Box 1111, Grand Cayman KY1-1102
         Cayman Islands
         Telephone: (345)-949-5122
         Fax: (345)-949-7920


COMMERCIAL EQUITY: Proofs of Claim Filing Ends on Jan. 21
---------------------------------------------------------
Commercial Equity Limited's creditors are given until
Jan. 21, 2008, to prove their claims to Westport Services Ltd.,
the company's liquidator, or be excluded from receiving any
distribution or payment.

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

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

The liquidator can be reached at:

         Westport Services Ltd.
         Attention: Bonnie Willkom
         P.O. Box 1111, Grand Cayman KY1-1102
         Cayman Islands
         Telephone: (345)-949-5122
         Fax: (345)-949-7920


COMMERCIAL INVESTMENTS: Proofs of Claim Filing Is Until Jan. 21
---------------------------------------------------------------
Commercial Investments Limited's creditors are given until
Jan. 21, 2008, to prove their claims to Westport Services Ltd.,
the company's liquidator, or be excluded from receiving any
distribution or payment.

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

Commercial Investments' shareholders agreed on Nov. 20, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

         Westport Services Ltd.
         Attention: Bonnie Willkom
         P.O. Box 1111, Grand Cayman KY1-1102
         Cayman Islands
         Telephone: (345)-949-5122
         Fax: (345)-949-7920


LAGUNA EQUITY: Proofs of Claim Filing Ends on Jan. 21
-----------------------------------------------------
Laguna Equity Limited's creditors are given until Jan. 21, 2008,
to prove their claims to Westport Services Ltd., the company's
liquidator, or be excluded from receiving any distribution or
payment.

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

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

The liquidator can be reached at:

         Westport Services Ltd.
         Attention: Bonnie Willkom
         P.O. Box 1111, Grand Cayman KY1-1102
         Cayman Islands
         Phone: (345)-949-5122
         Fax: (345)-949-7920


LAGUNA HOLDINGS: Proofs of Claim Filing Deadline Is Jan. 21
-----------------------------------------------------------
Laguna Holdings Limited's creditors are given until
Jan. 21, 2008, to prove their claims to Westport Services Ltd.,
the company's liquidator, or be excluded from receiving any
distribution or payment.

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

Laguna Holdings' shareholders agreed on Nov. 20, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

         Westport Services Ltd.
         Attention: Bonnie Willkom
         P.O. Box 1111, Grand Cayman KY1-1102
         Cayman Islands
         Phone: (345)-949-5122
         Fax: (345)-949-7920


LAKEHILL INVESTMENTS: Proofs of Claim Filing Ends on Jan. 21
------------------------------------------------------------
Lakehill Investments Limited's creditors are given until
Jan. 21, 2008, to prove their claims to Westport Services Ltd.,
the company's liquidator, or be excluded from receiving any
distribution or payment.

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

Lakehill Investments' shareholders agreed on Nov. 20, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

         Westport Services Ltd.
         Attention: Bonnie Willkom
         P.O. Box 1111, Grand Cayman KY1-1102
         Cayman Islands
         Phone: (345)-949-5122
         Fax: (345)-949-7920


LANDMARK EQUITY: Proofs of Claim Filing Deadline Is Jan. 21
-----------------------------------------------------------
Landmark Equity Limited's creditors are given until
Jan. 21, 2008, to prove their claims to Westport Services Ltd.,
the company's liquidator, or be excluded from receiving any
distribution or payment.

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

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

The liquidator can be reached at:

         Westport Services Ltd.
         Attention: Bonnie Willkom
         P.O. Box 1111, Grand Cayman KY1-1102
         Cayman Islands
         Phone: (345)-949-5122
         Fax: (345)-949-7920


MARCUS EQUITY: Proofs of Claim Filing Ends on Jan. 21
-----------------------------------------------------
Marcus Equity Limited's creditors are given until Jan. 21, 2008,
to prove their claims to Westport Services Ltd., the company's
liquidator, or be excluded from receiving any distribution or
payment.

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

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

The liquidator can be reached at:

         Westport Services Ltd.
         Attention: Bonnie Willkom
         P.O. Box 1111, Grand Cayman KY1-1102
         Cayman Islands
         Phone: (345)-949-5122
         Fax: (345)-949-7920


MARCUS HOLDINGS: Proofs of Claim Filing Deadline Is Jan. 21
-----------------------------------------------------------
Marcus Holdings Limited's creditors are given until
Jan. 21, 2008, to prove their claims to Westport Services Ltd.,
the company's liquidator, or be excluded from receiving any
distribution or payment.

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

Marcus Holdings' shareholders agreed on Nov. 20, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

         Westport Services Ltd.
         Attention: Bonnie Willkom
         P.O. Box 1111, Grand Cayman KY1-1102
         Cayman Islands
         Phone: (345)-949-5122
         Fax: (345)-949-7920


ORANGE EQUITY: Proofs of Claim Filing Is Until Jan. 21
------------------------------------------------------
Orange Equity Limited's creditors are given until Jan. 21, 2008,
to prove their claims to Westport Services Ltd., the company's
liquidator, or be excluded from receiving any distribution or
payment.

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

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

The liquidator can be reached at:

         Westport Services Ltd.
         Attention: Bonnie Willkom
         P.O. Box 1111, Grand Cayman KY1-1102
         Cayman Islands
         Phone: (345)-949-5122
         Fax: (345)-949-7920


ORANGE INVESTMENTS: Proofs of Claim Filing Ends on Jan. 21
----------------------------------------------------------
Orange Investments Limited's creditors are given until
Jan. 21, 2008, to prove their claims to Westport Services Ltd.,
the company's liquidator, or be excluded from receiving any
distribution or payment.

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

Orange Investments' shareholders agreed on Nov. 20, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

         Westport Services Ltd.
         Attention: Bonnie Willkom
         P.O. Box 1111, Grand Cayman KY1-1102
         Cayman Islands
         Phone: (345)-949-5122
         Fax: (345)-949-7920


PARMALAT SPA: Deloitte Wants to Settle with Bondholder Group
------------------------------------------------------------
Deloitte & Touche Tohmatsu is proposing a settlement with around
32,000 Parmalat S.p.A. bondholders who lost their money when the
dairy concern collapsed in December 2003, Thomson Financial
reports.

Deloitte, on behalf of former Dianthus S.p.A. unit, has agreed
the settlement with the Committee for Parmalat bond clients of
San Paolo IMI, which represents around 70% of bondholders who
have filed damage actions in a Milan court, Thomson Financial
relates.

The proposal offers bondholders a payment of up to 6% of the
nominal value of bond investments made before Nov 11, 2003,
Deloitte was cited by Thomson Financial as saying.  The proposal
also offers an average of 4.5%-5.0% for up to EUR50,000 of
bonds.

The settlement plan, however, has no impact on Parmalat or on
Intesa Sanpaolo S.p.A., Thomson Financial cites market sources
as saying.

Deloitte and Dianthus have denied any participation or knowledge
of fraud by others in the Parmalat collapse.  The audit firms
said a settlement would help them avoid costs, complexity and
uncertainty in legal actions.

Headquartered in Milan, Italy, Parmalat S.p.A. --
http://www.parmalat.net/-- sells nameplate milk products that
can be stored at room temperature for months.  It also has about
40 brand product lines, which include yogurt, cheese, butter,
cakes and cookies, breads, pizza, snack foods and vegetable
sauces, soups and juices.

The company's U.S. operations filed for chapter 11 protection on
Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139).  Gary
Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal &
Manges LLP, represent the Debtors.  When the U.S. Debtors filed
for bankruptcy protection, they reported more than US$200
million in assets and debts.  The U.S. Debtors emerged from
bankruptcy on April 13, 2005.

Parmalat S.p.A. and its Italian affiliates filed separate
petitions for Extraordinary Administration before the Italian
Ministry of Productive Activities and the Civil and Criminal
District Court of the City of Parma, Italy on Dec. 24, 2003.
Dr. Enrico Bondi was appointed Extraordinary Commissioner in
each of the cases.  The Parma Court has declared the units
insolvent.

On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No.
04-14268, in the United States Bankruptcy Court for the Southern
District of New York.

Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat
Capital Finance Ltd., and Food Holdings Ltd.  Dairy Holdings and
Food Holdings are Cayman Island special-purpose vehicles
established by Parmalat S.p.A.  The Finance Companies are under
separate winding up petitions before the Grand Court of the
Cayman Islands.  Gordon I. MacRae and James Cleaver of Kroll
(Cayman) Ltd. serve as Joint Provisional Liquidators in the
cases.  On Jan. 20, 2004, the Liquidators filed Sec. 304
petition, Case No. 04-10362, in the United States Bankruptcy
Court for the Southern District of New York.  In May 2006, the
Cayman Island Court appointed Messrs. MacRae and Cleaver as
Joint Official Liquidators.  Gregory M. Petrick, Esq., at
Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq.,
at Janvey, Gordon, Herlands Randolph, represent the Finance
Companies in the Sec. 304 case.

The Honorable Robert D. Drain presides over the Parmalat
Debtors' U.S. cases.  On June 21, 2007, the U.S. Court Granted
Parmalat Permanent Injunction.


THIRTEEN MARINE: Proofs of Claim Filing Deadline Is Jan. 21
-----------------------------------------------------------
Thirteen Marine, Ltd.'s creditors are given until Jan. 21, 2008,
to prove their claims to J. Ira Harris, the company's
liquidator, or be excluded from receiving any distribution or
payment.

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

Thirteen Marine's shareholder decided on Dec. 12, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

         J. Ira Harris
         4th Floor, Scotia Center
         Albert Panton Street, P.O. Box 268
         George Town, Grand Cayman KY1-1104
         Cayman Islands
         Tel: 345 949 6258
         Fax: 345 945 2877


WESTSHORE HOLDINGS: Proofs of Claim Filing Deadline Is Jan. 21
--------------------------------------------------------------
Westshore Holdings Limited's creditors are given until
Jan. 21, 2008, to prove their claims to Westport Services Ltd.,
the company's liquidator, or be excluded from receiving any
distribution or payment.

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

Westshore Holdings' shareholders agreed on Nov. 20, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

         Westport Services Ltd.
         Attention: Bonnie Willkom
         P.O. Box 1111, Grand Cayman KY1-1102
         Cayman Islands
         Phone: (345)-949-5122
         Fax: (345)-949-7920




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


EASTMAN KODAK: Earns US$37 Million in 2007 Third Quarter
--------------------------------------------------------
Eastman Kodak Company reported net income of US$37.0 million for
the third quarter ended Sept. 30, 2007, compared with a net loss
of US$37.0 million in the same period last year.

Sales totaled US$2.58 billion, a decrease of 1% from US$2.60
billion in the third quarter of 2006.

Digital revenue totaled US$1.59 billion, a 12% increase from
US$1.42 billion.  Traditional revenue totaled US$986.0 million,
a 16% decline from US$1.17 billion in the year-ago quarter.

The company reported third-quarter earnings from continuing
operations of US$29.0 million pre-tax, US$34.0 million after
tax, compared with a loss of US$53.0 million pre-tax, US$83.0
million after tax in the year-ago period.  This represents an
improvement of US$82.0 million pre-tax and US$117.0 million
after-tax.

Items of net expense impacting comparability in the third
quarter of 2007 totaled US$94.0 million after tax.  The most
significant item was restructuring costs of US$127.0 million
before tax and US$96.0 million after tax.  In the third quarter
of 2006, items of net expense impacting comparability totaled
US$137.0 million after tax, primarily reflecting restructuring
costs.

"I am very pleased with our third-quarter performance, which
represents a milestone in the emergence of the new Kodak," said
Antonio M. Perez, chairman and chief executive officer, Eastman
Kodak Company.  "We delivered solid, value-creating digital
growth, powered by a 12% increase in digital revenue, as well as
expanded gross margins and positive net earnings.  This
increases my confidence in achieving our full-year goals and
positions us well as we enter 2008."

The company's third-quarter earnings from continuing operations,
before interest, other income, net, and income taxes were
US$20.0 million, compared with a loss of US$11.0 million in the
year-ago quarter.

Gross Profit margin was 26.4% for the quarter, up from 25.1%
in the prior year, primarily attributable to lower costs from
manufacturing footprint reductions, offset by adverse silver
and aluminum costs.

Net Cash Generation for the third quarter represented a use of
US$95.0 million, compared with positive cash flow of US$151.0
million in the year-ago quarter.  This corresponds to net cash
provided by operating activities from continuing operations of
US$1.0 million for the third quarter, compared with US$237.0
million in the year-ago quarter.

The company's debt level stood at US$1.63 billion as of
Sept. 30, 2007.  This is a US$1.15 billion reduction from the
2006 year-end debt level of US$2.78 billion.

Kodak held US$1.85 billion in cash and cash equivalents as of
Sept. 30, 2007, an increase of US$745.0 million from the year-
ago period.  This was primarily the result of proceeds from the
company's sale of its Health Group, which was completed in the
second quarter of 2007.

                        Balance Sheet

At Sept. 30, 2007, the company's consolidated balance sheet
showed US$12.93 billion in total assets, US$10.27 billion in
total liabilities and US$2.66 billion in total shareholders'
equity.

Full-text copies of the company's consolidated financial
statements for the quarter ended Sept. 30, 2007, are available
for free at http://researcharchives.com/t/s?26f7

                    About Eastman Kodak

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

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

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Sept. 14, 2007, Standard & Poor's Ratings Services affirmed its
'B+' corporate credit rating on Eastman Kodak Co. and removed
the ratings from CreditWatch, where they had been placed with
negative implications on Aug. 2, 2006.  S&P said the outlook is
negative.


ROCK-TENN CO: Southern Buyout Deal Cues Moody's To Review Rating
----------------------------------------------------------------
Moody's Investors Service has placed the ratings of Rock-Tenn
Company under review for possible downgrade following the
company's announcement that it has signed a definitive agreement
to acquire Southern Container Corp., a privately held
containerboard manufacturing and corrugated packaging business.

Under the terms of the agreement, Rock-Tenn will acquire the
stock of Southern Container for US$851 million in cash and will
assume approximately US$142 million in debt for a total purchase
price of approximately US$993 million.  Rock-Tenn plans to
finance the acquisition with proceeds from US$1.0 billion in new
credit facilities and with the issuance of US$400 million in
unsecured notes.  The transaction, which is subject to
regulatory approvals, is expected to close in late March 2008.
The incurrence of approximately US$1.1 billion of incremental
indebtedness will more than double the company's existing debt.
The review will focus on the proposed capital structure of the
combined company, the integration process, and the anticipated
operating and financial performance of the combined company.
The review will also assess the combined company's business
prospects, cash flow, liquidity arrangements and management
structure, and is expected to be completed within 30 to 90 days.

On review for possible downgrade:

  -- Probability of Default Rating, Placed on Review for
     Possible Downgrade, currently Ba2

  -- Corporate Family Rating, Placed on Review for Possible
     Downgrade, currently Ba2

  -- Senior Unsecured Bank Credit Facility, Placed on Review
     for Possible Downgrade, currently 40 - LGD3

  -- Senior Unsecured Regular Bond/Debenture, Placed on Review
     for Possible Downgrade, currently 67 - LGD4

Outlook actions:

  -- Outlook, Changed To Rating Under Review From Stable

Headquartered in Norcross, Georgia, Rock-Tenn Company (NYSE:
RKT) -- http://www.rocktenn.com/-- provides a wide range of
marketing and packaging solutions to consumer products
companies, with operating locations in the United States,
Canada, Mexico, Argentina and Chile.  The company is one of
North America's manufacturers of packaging products,
merchandising displays and bleached and recycled paperboard.


ROCK-TENN CO: S&P Places BB+ Corp. Credit Rating on WatchNeg
------------------------------------------------------------
Standard & Poor's Ratings Services has placed its 'BB+'
corporate credit rating on Rock-Tenn Co. on CreditWatch with
negative implications.  At the same time, S&P placed the 'BB-'
rating on the company's existing senior unsecured notes on
CreditWatch with developing implications.

The CreditWatch placement followed the company's announcement
that it had agreed to acquire privately held Southern Container
Corp. in an all-cash transaction for US$993 million, including
US$142 million of outstanding debt that will remain at Southern
Container.

Rock-Tenn Co. intends to finance the transaction through funds
provided by a fully committed bank facility and newly issued
senior unsecured notes.  In addition, the company intends to
refinance its existing bank facility.

S&P will withdraw its ratings on the existing bank credit
facilities once they are refinanced.  The transaction is
expected to close by March 31, 2008, subject to regulatory
approval.

"While it is the company's intention to grant collateral to
noteholders under the terms of the outstanding indentures," said
S&P's credit analyst Andy Sookram, "the CreditWatch listing
reflects our current uncertainty regarding the extent of the
contemplated collateral package relative to the proposed bank
facility, which could have a meaningful impact on the recovery
prospects for the notes."

Following this transaction, Rock-Tenn Co. will become more
geographically diverse and should benefit from Southern
Container's low-cost containerboard mill and modern corrugated
box plant system.

In resolving the CreditWatch listing, S&P will assess the
company's future operating and financial objectives, in addition
to its pro forma capital structure, in light of the proposed
transaction.

Headquartered in Norcross, Georgia, Rock-Tenn Company (NYSE:
RKT) -- http://www.rocktenn.com/-- provides a wide range of
marketing and packaging solutions to consumer products
companies, with operating locations in the United States,
Canada, Mexico, Argentina and Chile.  The company is one of
North America's manufacturers of packaging products,
merchandising displays and bleached and recycled paperboard.




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


PARKER DRILLING: Updates Kazakhstan Tax Case
--------------------------------------------
Parker Drilling Company reported that in December 2007 a
subsidiary paid US$26 million in income taxes to the Republic of
Kazakhstan pursuant to a previously reported tax assessment.
The payment is exclusive of interest and net of estimated taxes
previously paid of approximately US$12 million.  The Company
will receive a foreign tax credit for this payment against
future tax payments, which would otherwise be paid to the United
States Treasury, excluding any currency exchange losses. The
Kazakhstan branch of the Company's subsidiary has filed an
appeal requesting a reduction in the interest.

Parker has funded a portion of this tax payment by borrowing
US$20 million of approximately US$45 million available under its
revolving credit facility.  It is anticipated that this US$20
million of borrowings will be repaid during the latter half of
2008.  Parker also anticipates that it can fund any interest
ultimately assessed from cash on hand or from additional
borrowings under its revolving credit facility.

                   About Parker Drilling

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

As reported in the Troubled Company Reporter-Latin America on
Oct. 4, 2007, Standard & Poor's Ratings Services has raised its
corporate credit rating on oil and gas contract driller Parker
Drilling Co. to 'B+' from 'B'.  At the same time, S&P has raised
the issue ratings on Parker's senior and convertible notes to
'B+' from 'B-'.  These consist of its US$125 million 2.125%
convertible notes due 2012, and US$225 million 9.625% senior
notes due 2013.


POLYONE CORP: Completes Acquisition of Ngai Hing PlastChem
----------------------------------------------------------
PolyOne Corporation has completed its previously announced
acquisition of the assets and operations of Ngai Hing PlastChem
Company Ltd., the vinyl-compounding subsidiary of Ngai Hing Hong
Company Ltd.  A subsidiary of Ngai Hing Hong will hold a 5%
interest in the new company that PolyOne Corp. will establish to
conduct its vinyl compound business in Asia.

This acquisition expands PolyOne Corp.'s geographic footprint
and is further testament to the company's globalization
emphasis, one of the four key components of its overall
corporate strategy.  Globalization moves the company into high-
growth markets where its customers are migrating, and positions
the company to serve them with consistency everywhere in the
world.

"The acquisition of Ngai Hing PlastChem Company creates further
opportunities for us in Asia, in line with our globalization
strategy," said senior vice president and general manager of
Vinyl Business, Robert M. Rosenau.  "We look forward to
accelerating our global growth and delivering the value our
customers expect from PolyOne."

Included in the transaction is the transfer of a manufacturing
facility in Dongguan, a city in the Guangdong province of
southern China.  This plant will be the company's fourth
manufacturing site in China; the other three make a broad array
of specialty products for the business equipment, electrical,
packaging and textile printing markets.

                     About PolyOne Corp.

Headquartered in northeast Ohio, PolyOne Corporation (NYSE: POL)
-- http://www.polyone.com/ -- is a leading global provider of
specialized polymer materials, services and solutions.  PolyOne
has operations in North America, Europe, Asia and Australia, and
joint ventures in North America and South America.  The company
maintains operations in China, Colombia, Thailand and Singapore.

                        *     *     *

Moody's Investor Services placed PolyOne Corporation's senior
unsecured debt, long-term corporate family and probability of
default ratings at 'B1' in July 2007.  The ratings still hold to
date with a stable outlook.


SOLUTIA INC: Joins Panel in Showing Cross-Appeal Issues v. BNY
--------------------------------------------------------------
Solutia Inc. and certain of its subsidiaries and affiliates and
the Official Committee of Unsecured Creditors present issues in
their cross-appeal from the U.S. Bankruptcy Court for the
Southern District of New York's final order granting partial
summary judgment in favor of the Debtors and the Committee.  The
judgment is related to the Debtors' objection to the Bank of New
York's Claim No. 6210.  The Bank of New York is the indenture
trustee for the holders of the 11.25% senior secured notes due
2009.

The cross-appeal encompasses all other orders rendered
appealable, including the memorandum decision on joint motion
for partial summary judgment with respect to Claim No. 6210, as
modified by the errata order entered on Nov. 21, 2007.

The Committee has filed before the Court a motion for the
application of certain postpetition payments made to Bank of New
York on behalf of the 2009 Noteholders in reduction of the
principal amount of the 2009 Noteholders' Claim.  The
Postpetition Interest Motion sought a determination by the Court
as to whether the 2009 Noteholders are receiving and will
continue to receive more than the amount of postpetition cash
interest payments than the 2009 Noteholders are entitled under
Section 506(b) of the Bankruptcy Code.

At a Dec. 10, 2007 hearing on the Postpetition Interest Motion,
the Court opined that the parties had stipulated on the record
to the amount of postpetition cash interest payments due to the
2009 Noteholders, and that the stipulation was reflected in the
Court's Order and Memorandum Decision.

The Court denied, without prejudice, the Committee's request for
application of around US$12,100,000 in postpetition payments
made to Bank of New York, as indenture trustee for the 11.25%
senior secured notes due 2009 issued by Solutia, or its
predecessor, in reduction of the principal amount of the 2009
Noteholders' Claim No. 6210.

The Debtors and the Committee do not agree that the parties made
that stipulation or that the Order or Memorandum Decision
reflect the stipulation or address the issue of postpetition
cash interest.

The Cross-Appellants filed their protective cross-appeal to
resolve these issues:

   (a) Whether the Court, in the Memorandum Decision or Order,
       determined the proper amount of postpetition cash
       interest payments to which the 2009 Noteholders are
       entitled under Section 506(b), as the Court indicated
       on the record at the Dec. 10, 2007 hearing on Cross-
       Appellants' Motion; and

   (b) If so, whether the Court erred in finding that the 2009
       Noteholders are entitled to receive an amount of
       postpetition interest that exceeds the amount due under
       Section 506(b).

As reported in the Troubled Company Reporter on Dec. 5, 2007,
The Bank of New York, as Indenture Trustee for the 2009 Notes,
issued by Solutia and its predecessor, takes an appeal to the
Court under 28 U.S.C. Section 158(a) from each and every part
of:

   (a) the order of the Court denying BNY's request for relief
       from the automatic stay, entered Nov. 26, 2007;

   (b) the Court's November 9 memorandum decision on joint
       motion partial summary judgment with respect to Claim
       No. 6210, and the Nov. 26 final order granting partial
       summary judgment in favor of the Debtors and the Official
       Committee of Unsecured Creditors regarding the Debtors'
       objection to BNY's Claim No. 6210; and

   (c) the Court's ruling on BNY's emergency motion for
       reconsideration of the Memorandum Decision on Joint
       Motion for Partial Summary Judgment, issued on Nov. 26.

                      About Solutia Inc.

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

Solutia is represented by Richard M. Cieri, Esq., Jonathan S.
Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis
LLP, in New York, as lead bankruptcy counsel, and David A.
Warfield, Esq., and Laura Toledo, Esq., at Blackwell Sanders
LLP, in St. Louis Missouri, as special counsel.  Trumbull Group
LLC is the Debtor's claims and noticing agent.  Daniel H.
Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq.,
at Akin Gump Strauss Hauer & Feld LLP represent the Official
Committee of Unsecured Creditors, and Derron S. Slonecker at
Houlihan Lokey Howard & Zukin Capital provides the Creditors'
Committee with financial advice. The Official Committee of
Retirees of Solutia, Inc., et al., is represented by Daniel D.
Doyle, Esq., Nicholas A. Franke, Esq., and David M. Brown, Esq.,
at Spencer Fane Britt & Browne, LLP, in St. Louis, Missouri, and
Frank M. Young, Esq., Thomas E. Reynolds, Esq., R. Scott
Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, in
Birmingham, Alabama.

On Feb. 14, 2006, the Debtors filed their Reorganization Plan &
Disclosure Statement.  On May 15, 2007, they filed an Amended
Reorganization Plan and on July 9, 2007, filed a 2nd Amended
Reorganization Plan.  The Bankruptcy Court approved the Debtors'
amended Disclosure Statement on Oct. 19, 2007.  On
Oct. 22, 2007, the Debtor re-filed a Consensual Plan &
Disclosure Statement and on Nov. 29, the Court confirmed the
Debtors' Consensual Plan.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Dec. 10, 2007, Standard & Poor's Ratings Services assigned its
'B+' loan rating to Solutia Inc.'s (D/--/--) proposed US$1.2
billion senior secured term loan and a '3' recovery rating,
indicating the likelihood of a meaningful (50%-70%) recovery of
principal in the event of a payment default.  The ratings are
based on preliminary terms and conditions.

S&P also assigned its 'B-' rating to the company's proposed
US$400 million unsecured notes.




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


* DOMINICAN REPUBLIC: SECCI To Develop Biofuels Production Study
----------------------------------------------------------------
The Inter-American Development Bank has approved a US$750,000
donation from SECCI funds for developing feasibility studies of
biofuels production initially in Haiti, El Salvador, and the
Dominican Republic.

SECCI will support countries in the region in order to develop
its biofuel industry.

The studies will be carried out by Brazil's Getulio Vargas
Foundation within the framework laid out by the US-Brazil
Initiative for Biofuels in Central America and the Caribbean.
FGV has established a successful methodology that has been
applied in similar studies in Brazil.

"The application of this uniform methodology will allow the
establishment of the limitations advantages of each of the
countries and if it were possible to make full use of these
conditions to launch the repositioning of the region as
a competitive force in the international market," said Laura
Natalia Rojas, one of the leaders of the IADB team.

"For the United States and Brazil, the largest producers and
consumers of ethanol in the world, it's indispensable to develop
a competitive and sustainable global market," said Arnaldo
Vieira de Carvalho, the other team leader.  "Central America and
the Caribbean have very good potential in this new market due to
their geographic location and the benefits given to them by
international treaties such as the Dominican Republic and
Central American Free Trade Agreement (DR-CAFTA)."

The program will be conducted in coordination with Brazil's
Export and Investment Promotion Agency and the corresponding
authorities in each country.  The activities will be carried out
by a team of technical, financial, and commercial experts,
provided by the Getulio Vargas Foundation.  This team will apply
the same methodology to all beneficiary countries in the
program.

                         SECCI Fund

The SECCI Fund was launched in November 2006 with an initial IDB
contribution of US$20 million and has subsequently received a
US$2.8 million donation from the United Kingdom.

The fund backs major investments in the development of biofuels,
renewable energy, energy efficiency, and a wide range of
sustainable energy options.  In certain cases, the fund will
also finance programs and policies aimed at fighting climate
change in the region, according to Juan Pablo Bonilla, SECCI
coordinator.

Institutions that can contribute to the fund include government
ministries, government agencies tasked with dealing with the
issue of climate change, planning entities, public and private
companies, sub-national governments, private investors, non-
governmental organizations, and academic institutions.

                        *     *     *

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.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Dec. 26, 2007, Standard & Poor's Ratings Services assigned B+
long-term sovereign local and foreign currency ratings and C
short-term sovereign local and foreign currency ratings on the
Dominican Republic.  S&P said the outlook for all the ratings is
stable.




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


PETROECUADOR: Buys Jet from Embraer
-----------------------------------
Ecuadorian state-owned oil firm Petroecuador has signed an
accord with Embraer to buy an ERJ 145 jet.  The contract also
includes a significant logistical package for supplying
replacement parts, technical support and crew training.  This
deal is already included in Embraer's firm order backlog
disclosed on Jan. 9.

"We are very happy to receive this order from Petroecuador.  We
offer an excellent product with the best technical and economic
conditions in the market," said Luis Carlos Aguiar, Embraer
Executive Vice President of Defense and Government Market.

Delivery of the 50-seat jet will be in the second half of this
year.  The aircraft will operate from Quito (the nation's
capital) to the Lago Agrio and El Coca airports, located in
Ecuador's Amazon region. Petroecuador expects to transport about
50,000 employees per year between the company's main office and
its branches.

"After an extensive evaluation process, Petroecuador chose
Embraer's ERJ 145 as the best plane for carrying its employees
safely and economically," stated Rear Admiral Fernando Zurita
Fabre.  "The outstanding performance at high altitudes, in
addition to low maintenance costs and the high reliability of
the aircraft, were decisive factors for our choice."

The ERJ 145 jet is the first member of a diversified aircraft
family of which more than 1,000 units have been delivered.
Since entering service in 1996, the ERJ 145 family has
accumulated over 12 million flight hours.  In the Defense and
Government segment, Embraer aircraft operate in over 20
countries, worldwide.

                        About Embraer

Embraer-Empresa Brasileira de Aeronautica S.A. aka Embraer is a
manufacturer of commercial aircraft.  The company is a supplier
of defense aircraft for the Brazilian Air Force.  It has also
sold aircraft to military forces in Europe, Asia and Latin
America.  Embraer operates four segments: commercial aviation,
defense and government, executive aviation, and customer
services and others.  The commercial aviation segment includes
the development, production and marketing of commercial jets and
provision of related support services, principally to the
airline industry worldwide.  Operations in the defense and
government segment involve research, development, production,
modification and support of military aircraft, products and
related systems.  The executive aviation segment has developed a
line of executive jets.  The customer services and others
segment relates mainly to after-sales customer support services,
and the manufacture and marketing of spare parts for the
Company's aircraft.

                     About Petroecuador

In previous years, Petroecuador, according to published reports,
was faced with cash-problems.  The state-oil firm has no funds
for maintenance, has no funds to repair pumps in diesel,
gasoline and natural gas refineries, and has no capacity to pay
suppliers and vendors.  The government refused to give the much-
needed cash alleging inefficiency and non-transparency in
Petroecuador's dealings.  In 2008, a new management team was
appointed to turn around the company's operations.


PETROECUADOR: Reports US$4.012 Billion 2007 Oil Export Revenues
---------------------------------------------------------------
Ecuadorian state-run oil firm Petroecuador's oil export revenues
increased 8% to US$4.012 billion in 2007, compared to US$3.730
billion in 2006, Dow Jones Newswires reports.

Data from Petroecuador indicated that in terms of volume,
Petrocuador exported some 66.60 million barrels of crude oil
last year, about 7% less than the 71.97 million barrels exported
in 2006, Dow Jones notes.

According to Dow Jones, Petroecuador's exports includes the Napo
crude from former Occidental Petroleum Co. fields that the
government confiscated in May 2006 after the US firm allegedly
breached the terms of its operating contract.

Dow Jones relates that exports of Oriente crude totaled 43.77
million barrels last year.  Exports of Napo crude were 22.83
million barrels.

The average price of Oriente crude in 2007 grew 18% to US$62.27
a barrel, compared to US$52.80 in 2006.  Meanwhile, the price of
Napo crude was US$56.34 per barrel in 2007, about 16% higher
compared to US$48.56 in 2006, Dow Jones states.

In previous years, Petroecuador, according to published reports,
was faced with cash-problems.  The state-oil firm has no funds
for maintenance, has no funds to repair pumps in diesel,
gasoline and natural gas refineries, and has no capacity to pay
suppliers and vendors.  The government refused to give the much-
needed cash alleging inefficiency and non-transparency in
Petroecuador's dealings.  In 2008, a new management team was
appointed to turn around the company's operations.




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


ALCATEL-LUCENT: Signs Turnpike Deal Connecting Hawaii to Tahiti
---------------------------------------------------------------
Alcatel-Lucent SA has signed a turnkey contract with French
Polynesian operator Office des Postes & Telecommunications.
According to this agreement, Alcatel-Lucent will roll out a new,
high-speed submarine cable network linking Tahiti in French
Polynesia to Hawaii in the United States, as well as providing
domestic connectivity.

This new submarine network, with a value of 72.2 M Euros, has
been called 'Honotua' (a Tahitian name meaning the link towards
the open sea) and it will greatly increase French Polynesia's
local and international connectivity.

Accordingly, the French Polynesian comapny will be able to
respond at more affordable costs, to the growing demand for
broadband services of its business and residential users.  By
providing the first submarine connection in French Polynesia,
this network will also help reduce the digital divide in the
Pacific region.

Delivering an ultimate capacity of 32x10 Gbit/s, the 'Honotua'
network will be composed of an international link between Tahiti
and Hawaii (4,650 km) and a domestic connection (305 km) linking
some of the islands in the French Polynesian archipelago.  With
completion scheduled in 2010, the 'Honotua' submarine cable
network will ease the availability and accessibility to high
quality, innovative broadband applications such as telemedicine,
e-learning and on-line tourism programs.

"This is a fundamental endeavor for French Polynesia aiming to
fuel economic and social viability for our community" points out
French Polynesia's Minister of Culture, Post &
Telecommunications, M. Jacqui Drollet.  "The new broadband
services and business-driven applications this network will make
available will allow us to improve the quality of life for our
citizens."

"The adoption rates of data services are growing fast, as well
as end-users' needs for bandwidth, reliability and service
delivery speeds," emphasizes OPT's Chairperson of the Board,
Jean-Paul Barral.  "With its recognized experience, Alcatel-
Lucent is a trusted technology partner as we take a new step in
our communication capabilities to meet these new service demands
reliably and at affordable costs."

"This contract confirms Alcatel-Lucent's commitment to helping
customers like OPT bridge the digital divide and spur
sustainable growth", says President of Alcatel-Lucent's
submarine network activity, Etienne Lafougere.  "Our solutions
give access to advanced technologies for delivering high added-
value broadband services and applications that stimulate socio-
economic development."

This new contract further strengthens the long-lasting
cooperation between Alcatel-Lucent and Office des Postes &
Telecommunications that already deploys Alcatel-Lucent's
wireless and access solutions to extend service reach in less
dense and remote rural areas of the archipelago.

                         About OPT

Office des Postes & Telecommunications is a public entity fully
owned by the territory of French Polynesia.  Its main duty is to
provide comprehensive telephony services and is committed to
improve access to all forms of information all over French
Polynesia, including remote islands.  Its 81 postal offices are
able to deliver postal and simple banking services as well.  The
company fully owns or controls entities such as Tikiphone for
mobile GSM services, MANA for internet services, Tahiti Nui
Satellite which operates 23 channels direct to home video
services, Tahiti Nui Telecom for International Telephone traffic
and finally, ISS as ITC in addition to providing advice, IT
consultancies often implement, deploy, and administer IT
systems.

              About the Alcatel-Lucent solution

The Alcatel-Lucent submarine solution will be based on its 1620
Light Manager next-generation DWDM submarine platform, and will
also include cable and submarine repeaters, providing direct
connectivity to landing stations.  A comprehensive suite of
professional services, including permitting and project
management, engineering, marine operation, installation, testing
and commissioning, is part of this turnkey project.

                    About Alcatel-Lucent

Headquartered in Paris, France, Alcatel-Lucent S.A. --
http://www.alcatel-lucent.com/-- provides solutions that enable
service providers, enterprises and governments worldwide to
deliver voice, data and video communication services to end
users.

Alcatel-Lucent maintains operations in 130 countries, including,
Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada,
United States, Costa Rica, Dominican Republic, El Salvador,
Guatemala, Peru, Venezuela, Indonesia, Australia, Brunei and
Cambodia.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Nov. 9, 2007, Moody's Investors Service downgraded to Ba3 from
Ba2 the Corporate Family Rating of Alcatel-Lucent.   The ratings
for senior debt of the group were equally lowered to Ba3 from
Ba2 and the trust preferred notes of Lucent Technologies Capital
Trust I have been downgraded to B2 from B1.  At the same time,
Moody's affirmed its Not-Prime rating for short-term debt of
Alcatel-Lucent.  Moody's said the outlook for the ratings is
stable.

Alcatel-Lucent's Long-Term Corporate Credit rating and Senior
Unsecured Debt carry Standard & Poor's Ratings Services' BB
rating.  Its Short-Term Corporate Credit rating stands at B.


* EL SALVADOR: SECCI Developing Biofuels Production Study
---------------------------------------------------------
The Inter-American Development Bank has approved a US$750,000
donation from SECCI funds for developing feasibility studies of
biofuels production initially in Haiti, El Salvador, and the
Dominican Republic.

SECCI will support countries in the region in order to develop
its biofuel industry.

The studies will be carried out by Brazil's Getulio Vargas
Foundation within the framework laid out by the US-Brazil
Initiative for Biofuels in Central America and the Caribbean.
FGV has established a successful methodology that has been
applied in similar studies in Brazil.

"The application of this uniform methodology will allow the
establishment of the limitations advantages of each of the
countries and if it were possible to make full use of these
conditions to launch the repositioning of the region as
a competitive force in the international market," said Laura
Natalia Rojas, one of the leaders of the IADB team.

"For the United States and Brazil, the largest producers and
consumers of ethanol in the world, it's indispensable to develop
a competitive and sustainable global market," said Arnaldo
Vieira de Carvalho, the other team leader.  "Central America and
the Caribbean have very good potential in this new market due to
their geographic location and the benefits given to them by
international treaties such as the Dominican Republic and
Central American Free Trade Agreement (DR-CAFTA)."

The program will be conducted in coordination with Brazil's
Export and Investment Promotion Agency and the corresponding
authorities in each country.  The activities will be carried out
by a team of technical, financial, and commercial experts,
provided by the Getulio Vargas Foundation.  This team will apply
the same methodology to all beneficiary countries in the
program.

                         SECCI Fund

The SECCI Fund was launched in November 2006 with an initial IDB
contribution of US$20 million and has subsequently received a
US$2.8 million donation from the United Kingdom.

The fund backs major investments in the development of biofuels,
renewable energy, energy efficiency, and a wide range of
sustainable energy options.  In certain cases, the fund will
also finance programs and policies aimed at fighting climate
change in the region, according to Juan Pablo Bonilla, SECCI
coordinator.

Institutions that can contribute to the fund include government
ministries, government agencies tasked with dealing with the
issue of climate change, planning entities, public and private
companies, sub-national governments, private investors, non-
governmental organizations, and academic institutions.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Dec. 26, 2007, Standard & Poor's Ratings Services has assigned
BB+ long-term sovereign local and foreign currency ratings and B
short-term sovereign local and foreign currency ratings on El
Salvador.  S&P said the outlook for all the ratings is stable.




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


BANCO G&T: S&P Affirms BB-/B Foreign Counterparty Credit Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services has affirmed its 'BB-/B'
foreign currency, counterparty, and CD ratings on Banco G&T
Continental S.A.  The outlook is stable. At the same time, S&P
affirmed its 'BBB-' survivability assessment on the bank.

"The affirmation is the result of improvements in capitalization
that are in tandem with our expectations.  In addition, we
expect improvements in risk management capabilities to pay off,
as the bank ventures into the retail market.  The affirmation on
our survivability assessment follows the bank's gains on market
share and the Guatemalan banking system's ongoing consolidation
process; G&T Continental has benefited from it," said S&P's
credit analyst Francisco Suarez.

During the next few years, stock-ownership support will be
reflected in limited dividend payments, planned capital
injections at the bank and holding company, and institutional
ownership.  The bank's management team is focused on improving
risk management capabilities to adequately cover the retail
market.

The outlook is stable.  Current and expected net capital
injections, in addition to the issuance of preferred shares,
should be enough to improve the bank's capitalization toward
more reasonable levels.  In addition, S&P believes that the bank
will continue its efforts to improve its risk management
capabilities.  If the bank maintains steady adjusted
capitalization levels above the 9% mark, pays debt at the
holding company, and improves profitability towards 2% ROA, the
ratings could be positively affected.  However, if asset quality
deteriorates, or if profitability or liquidity is pressured, the
ratings could be negatively affected.

Banco G&T Continental SA is the second-largest bank in
Guatemala, with a 17% market share in deposits and 13% in loans.
The bank has been able to develop a large distribution network
and benefit from a growing, stable, and diversified deposit base
that, in turn, provides enough flexibility for growth as loans
represents 51% of core deposits.


BANCO INDUSTRIAL: S&P Affirms BB-/B Counterparty Credit Rating
--------------------------------------------------------------
Standard & Poor's Ratings Services has affirmed its 'BB-/B'
counterparty credit and CD ratings on Banco Industrial S.A.  The
outlook is stable.  At the same time, S&P affirmed its 'BBB-'
survivability assessment.

The rating affirmation assumes that existing leverage at the
holding company that financed the acquisition of Banco del Pais
(Banpais; not rated) in Honduras will be eliminated within the
next six months.  Also, the affirmation considers the bank's
enhanced capabilities for internal capital generation, and the
restoration of the bank's capitalization since 2006 when the
bank began to consolidate assets in Guatemala.  The affirmation
of S&P's survivability assessment on Banco Industrial follows
the bank's gains in market share and the Guatemalan banking
system's ongoing consolidation process, from which the bank has
benefited.

"Our ratings on BI are limited by the bank's low adjusted
capitalization levels, and aggressive financial policies that
lead to double-leverage and structural asset concentrations,
mainly in its investment portfolio.  Our ratings consider the
bank's leading market position in Guatemala, the support from
BI's stockholders, and improving financial performance," said
S&P's credit analyst Francisco Suarez.

In S&P's opinion, the bank has engaged in aggressive financial
policies to finance inorganic growth. As long as debt at the
holding company that financed the acquisition of Banpais in
Honduras exists, internal capital generation accretion at the
bank could decrease due to the potential need to upstream
dividends.  The acquisition is relevant as Banpais represents
14% of Banco Industrial's total assets and with this, 25% of the
banks' total loan portfolio is related to countries other than
Guatemala.  The acquisition also exposes the bank to more
vulnerable economies.

Banco Industrial has benefited from the flight to quality and
increased market share following the intervention of some
troubled local banks.  The bank's market share, including Banco
del Quetzal, was 27% as of November 2007, up from 19% in March
2006.

The outlook is stable.  S&P expects Banco Industrial to
eliminate double leverage at the holding company in the next six
months.  In addition, S&P expects that the bank's stockholders
to remain supportive of the bank in the form of limited
dividends and additional capital injections.  Also, S&P expects
the bank to issue hybrids to increase its adjusted
capitalization toward 8% and maintain it as it is entering more
vulnerable economies.  Failure to meet any of the aforementioned
expectations will result in a negative rating action.

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




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


* HAITI: SECCI to Develop Biofuels Production Feasibility Study
---------------------------------------------------------------
The Inter-American Development Bank has approved a US$750,000
donation from SECCI funds for developing feasibility studies of
biofuels production initially in Haiti, El Salvador, and the
Dominican Republic.

SECCI will support countries in the region in order to develop
its biofuel industry.

The studies will be carried out by Brazil's Getulio Vargas
Foundation within the framework laid out by the US-Brazil
Initiative for Biofuels in Central America and the Caribbean.
FGV has established a successful methodology that has been
applied in similar studies in Brazil.

"The application of this uniform methodology will allow the
establishment of the limitations advantages of each of the
countries and if it were possible to make full use of these
conditions to launch the repositioning of the region as
a competitive force in the international market," said Laura
Natalia Rojas, one of the leaders of the IADB team.

"For the United States and Brazil, the largest producers and
consumers of ethanol in the world, it's indispensable to develop
a competitive and sustainable global market," said Arnaldo
Vieira de Carvalho, the other team leader.  "Central America and
the Caribbean have very good potential in this new market due to
their geographic location and the benefits given to them by
international treaties such as the Dominican Republic and
Central American Free Trade Agreement (DR-CAFTA)."

The program will be conducted in coordination with Brazil's
Export and Investment Promotion Agency and the corresponding
authorities in each country.  The activities will be carried out
by a team of technical, financial, and commercial experts,
provided by the Getulio Vargas Foundation.  This team will apply
the same methodology to all beneficiary countries in the
program.

                         SECCI Fund

The SECCI Fund was launched in November 2006 with an initial IDB
contribution of US$20 million and has subsequently received a
US$2.8 million donation from the United Kingdom.

The fund backs major investments in the development of biofuels,
renewable energy, energy efficiency, and a wide range of
sustainable energy options.  In certain cases, the fund will
also finance programs and policies aimed at fighting climate
change in the region, according to Juan Pablo Bonilla, SECCI
coordinator.

Institutions that can contribute to the fund include government
ministries, government agencies tasked with dealing with the
issue of climate change, planning entities, public and private
companies, sub-national governments, private investors, non-
governmental organizations, and academic institutions.

                        *     *     *

Haiti is currently seeking international help to spur economic
development in the country.  President Rene Preval submitted
that the country's poverty, widespread unemployment and the
dilapidated state of infrastructure will be alleviated with
increased international assistance.




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


AIR JAMAICA: Gov't Denies Virgin Atlantic Lead in Bidding
---------------------------------------------------------
The Jamaican government has denied reports saying that Virgin
Atlantic Airlines is leading the bidding for Air Jamaica, The
Jamaica Observer reports.

As reported in the Troubled Company Reporter-Latin America on
Jan. 14, 2008, one of the four unnamed major airline firms is
selected to take a stake in Air Jamaica within another year. Don
Wehby, minister without portfolio in the Ministry of Finance,
said that the response from potential partners had been
overwhelming, and there were some very serious partners with a
lot of good plans and capital who we are speaking to now.
According to Mr. Wehby, the government sought a partner that
must:

   -- be major company with airline experience and had a huge
      capital to operate Air Jamaica,

   -- present a very clear plan of how they intend to increase
      the flow of tourists into Jamaica, and

   -- be willing to maintain the Air Jamaica brand on the
      aircraft.

Published reports say that Virgin Atlantic had made the winning
bid for Air Jamaica.

The Observer notes that Virgin Airlines took over the Air
Jamaica London route for US$10.2 million last year.

Mr. Wehby commented to The Observer, "The prime minister has
given me charge to restructure and divest Air Jamaica by the
latest March 2009."

Air Jamaica costs taxpayers some US$100 million yearly.  It has
a US$1.1 billion deficit, The Observer says, citing Mr. Wehby.
"This works out to two year's worth of deficit for the entire
Jamaica," Mr. Wehby commented to the news daily.

Air Jamaica is a "great asset," according to The Observer,
citing Mr. Wehby.  The airline is a loss-making one, but the
Montego Bay hub that it controls is one of its greatest selling
points.  "The MoBay hub is a gate way to South America and that
is not on the balance sheet," Mr. Wehby explained to The
Observer.

One of the "excited bidders" for Air Jamaica was from China, The
Observer says, citing Mr. Wehby.  The MoBay hub was of great
interest to the Chinese.

"We have contracted the International Finance Corporation to put
together an airline package that would value all the assets that
the airline has," Mr. Wehby told The Observer.

Headquartered in Kingston, Jamaica, Air Jamaica --
http://www.airjamaica.com/-- was founded in 1969.  It flies
passengers and cargo to almost 30 destinations in the Caribbean,
Europe, and North America.  Air Jamaica offers vacation packages
through Air Jamaica Vacations.  The company closed its intra-
island services unit, Air Jamaica Express, in October 2005.  The
Jamaican government assumed full ownership of the airline after
an investor group turned over its 75% stake in late 2004.  The
government had owned 25% of the company after it went private in
1994.  The Jamaican government does not plan to on Air Jamaica
permanently.

                        *     *     *

On July 21, 2006, Standard & Poor's Rating Services assigned B
long-term foreign issuer credit rating on Air Jamaica Ltd.,
which is equal to the long-term foreign currency sovereign
credit rating on Jamaica, is based on the government's
unconditional guarantee of both principal and interest payments.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 12, 2007, Moody's Investors Service assigned a rating of B1
to Air Jamaica Limited's guaranteed senior unsecured notes.


NATIONAL WATER: St. Catherine Dep't May File Suit Against Firm
--------------------------------------------------------------
Radio Jamaica reports that the St. Catherine Health Department
is considering suing the National Water Commission due to its
failure to maintain facilities in the parish.

St. Catherine has written to the National Water several times,
informing the firm of the condition of the treatment plant and
oxidation pond, Radio Jamaica says, citing St. Catherine's
acting public health inspector Roy Crooks.

The National Water didn't heed to St. Catherine's pleas and is
continuing to neglect its responsibility, as sewage is flowing
from the facilities into the Rio Cobre, Mr. Crooks told Radio
Jamaica.

                        *     *     *

As reported in the Troubled Company Reporter on Feb. 7, 2006,
the National Water Commission of Jamaica had been criticized for
failing to act promptly in cutting its losses.  For the fiscal
years 2002 and 2003, the water commission accumulated a net loss
of US$2.11 billion.  The deficit fell to US$1.86 billion the
following year, and to US$670 million in 2004 and 2005.


* JAMAICA: Won't Sell 20% Stake in Jamaica Public Service Co.
-------------------------------------------------------------
The Jamaican government won't be selling its 20% stake in the
Jamaica Public Service Company, Radio Jamaica reports.

According to Radio Jamaica, the previous government had said it
would divest the shares in the Jamaica Public Service to raise
money to fund its expenditures.

The current government has decided to keep the shares in the
company, Radio Jamaica says, citing Jamaican energy minister
Clive Mullings told.

The Jamaica Public Service has to be maintained as it is
important to the economy and to the national development.
Keeping the shares will give the administration a say in how the
company should be run, Minister Mullings told Radio Jamaica.

As reported in the Troubled Company Reporter-Latin America on
Dec. 26, 2007, Standard & Poor's Ratings Services assigned B
long- and short-term sovereign local and foreign currency
ratings on Jamaica.  Standard & Poor's said the outlook for all
the ratings is stable.

As reported on Oct. 16, 2007, Fitch Ratings affirmed Jamaica's
ratings and the Stable Outlook as:

  -- Foreign and local currency Issuer Default Ratings 'B+';
  -- Country ceiling 'BB-';
  -- Bond obligations 'B+/RR4'.




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


AXTEL SAB: Selects Motorola as First WiMAX Technology Vendor
------------------------------------------------------------
Axtel, S.A.B. de C.V. has selected Motorola de Mexico S.A. and
Motorola Inc. as the first vendor to provide access points, core
network equipment, associated services and customer devices for
its initial deployment of the Worldwide Interoperability for
Microwave Access technology.

WiMAX is a new IP-based voice and data wireless technology
designed to deliver voice and data solutions, under fixed,
portable, nomadic and mobile environments, to residential and
business customers.  Differentiated from other IP-based
technologies, WiMAX provides quality of service and guaranteed
reliability in accordance with grade of service standards for
global telecommunications companies.  Full mobile voice and data
WiMAX solutions are expected to become available by year-end
2008 or beginning 2009.

Axtel will purchase from Motorola equipment to install 802.16e
WiMAX radiobase stations, or access points, voice and data
customer premise equipment, and PCMCIA cards.  Indoor customer
premise equipment's with wi-fi functionality and USB dongles
will also be available for WiMAX.  Laptops, PDA's and handsets
with WiMAX embedded chipsets should be available by the end of
this year or beginning 2009.

With WiMAX technology, Axtel's residential and business
customers will have further availability of virtual private
network solutions and secured access to high-speed Internet in
all of Axtel's coverage areas.

"Axtel becomes the first telecommunications company to introduce
the new WiMAX technology in Mexico, supporting Axtel's multi-
technology strategy where customers are served using the most
efficient technological solutions maximizing our return on
investment.  This deployment strengthens Axtel's clear
convergence strategy of providing fixed and mobile
telecommunications services on a single network," stated Axtel's
Chairperson and Chief Executive Officer, Tomas Milmo Santos.

Deployment of WiMAX technology has begun in Monterrey, Puebla
and Guadalajara, with more cities coming soon.  The
standardization and interoperability benefits of WiMAX should be
translated into cost benefits and vendor compatibility for
Axtel.

                         About Axtel

Headquartered in Monterrey, Mexico, Axtel S.A.B. de C.V. (BMV:
AXTELCPO; OTC: AXTLY) was formerly known as Axtel SA DE CV.  The
company's principal activity is providing local and long-
distance domestic and international telephony, data and Internet
services, virtual private networks and value added services.
Services include different access technologies such as fixed
wireless telephony, point-to-point and point-to-multi point
radio links, and copper and fiber optic connections.  Basic
services are divided into 5 categories such as voice, conference
call, data, Internet and bundles.  It offers basic
telecommunications infrastructure in Mexico through an
intelligent network that provides extensive coverage to all
markets.  It currently operates in Mexico City, Monterrey,
Guadalajara, Puebla, Leon, Toluca, Queretaro, San Luis Potosi,
Aguascalientes, Saltillo, Ciudad Juarez, Tijuana, La Laguna,
Veracruz and Chihuahua.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Nov. 8, 2007, Moody's Investors Service upgraded Axtel, S.A.B.
de C.V.'s corporate family rating to Ba2 from Ba3 based on the
rapid improvement of the company's credit metrics to levels
prior to the acquisition of Avantel as well as expected
improvements in free cash flow generation.  Moody's says the
outlook is now stable.

Approximately US$437.5 million of debt securities affected.

These issues were affected by Moody's action:

  -- US$162.5 million of 11% Senior Unsecured Global Notes due
     2013

  -- US$275 million of 7.625% Senior Unsecured Global Notes due
     2017


DURA AUTOMOTIVE: Posts US$12,399,000 Net Loss in November 2007
--------------------------------------------------------------

         DURA Automotive Systems, Inc., and Subsidiaries
               Condensed Consolidated Balance Sheet
                    As of November 25, 2007
                   (In thousands of dollars)

                             ASSETS

Current assets:
  Cash and cash equivalents                           US$11,660
  Accounts receivable, net
     Trade                                              110,629
     Other                                                8,373
     Non-Debtor subsidiaries                             24,197
  Inventories                                            49,021
  Other current assets                                   35,880
                                                     ----------
     Total current assets                               239,760
                                                     ----------

Property, plant and equipment, net                      131,184
Goodwill, net                                           178,611
Notes receivable from Non-Debtors subsidiaries          194,310
Investment in Non-Debtors subsidiaries                  790,647
Other noncurrent assets                                  16,883
                                                     ----------
Total Assets                                       US$1,551,395

         LIABILITIES AND STOCKHOLDERS' INVESTMENT

Current liabilities:
  Debtors-in-possession financing                    US$140,332
  Accounts payable                                       41,424
  Accounts payable to Non-Debtors subsidiaries            2,052
  Accrued Liabilities                                    77,506
                                                     ----------
     Total current liabilities                          261,314
                                                     ----------
Long-term Liabilities:
  Notes Payable to Non-Debtors subsidiaries               9,652
  Other noncurrent liabilities                           57,440
Liabilities Subject to Compromise                     1,310,265
                                                     ----------
Total Liabilities                                     1,638,671

Stockholders' Investment                                (87,276)
                                                     ----------
Total Liabilities and Stockholders' Investment     US$1,551,395


         DURA Automotive Systems, Inc., and Subsidiaries
      Condensed Unaudited Consolidated Statement of Operations
             For the Four Weeks Ended November 25, 2007
                     (In thousands of dollars)

Total sales                                           US$57,195
Cost of sales                                            56,610
                                                     ----------
Gross (loss) profit                                         585

Selling, general and administrative expenses              4,587
Facility consolidation, asset impairment
  and other charges                                         877
Amortization expense                                         19
                                                     ----------
Operating (loss) income                                  (4,898)

Interest expense, net                                     2,898
                                                     ----------
Loss before reorganization items and income taxes        (7,796)

Reorganization items                                      4,286
                                                     ----------
Loss before income taxes                                (12,082)
Provision for income taxes                                  (23)
                                                     ----------
Loss from continuing operations                          12,059
Loss from discontinued operations                           340
                                                     ----------
Net Income (Loss)                                    (US$12,399)


         DURA Automotive Systems, Inc., and Subsidiaries
     Condensed Unaudited Consolidated Statements of Cash Flows
            For the Four Weeks Ended November 25, 2007
                    (In thousands of dollars)

Operating Activities:
Net Income (loss)                                    (US$12,399)
Adjustments to reconcile net loss to net cash used
  in operations activities:
     Depreciation, amortization & asset impairments       2,164
     Amortization of deferred financing fees                708
      (Gain)/Loss on sale of assets                        (243)
     Reorganization items                                 4,286
Changes in other operating items:
  Accounts receivable                                     2,004
  Inventories                                                95
  Other current assets                                   (1,590)
  Noncurrent assets                                         110
  Accounts payable                                       (4,579)
  Accrued liabilities                                    (4,277)
  Noncurrent liabilities                                   (202)
  Current intercompany transactions                       7,847
                                                       --------
Net cash provided by operating activities                 6,076

Investing Activities:
Purchases of property, plant & equipment                 (1,607)
Proceeds from sales of assets                             1,075
                                                       --------
Net cash (used in) provided by investing activities         532

Financing Activities:
  DIP borrowings                                         13,708
  Payments on prepetition debt                                -
                                                       --------
Net cash used in financing activities                    13,708
Net Increase (Decrease) in Cash & Equivalents             7,100

Cash & Cash Equivalent, Beginning Balance                 4,560
                                                       --------
Cash & Cash Equivalent, Ending Balance                US$11,660

Rochester Hills, Mich.-based DURA Automotive Systems Inc.
(Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive industry.  The company is also a supplier of similar
products to the recreation vehicle and specialty vehicle
industries.  DURA sells its automotive products to North
American, Japanese and European original equipment manufacturers
and other automotive suppliers.

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

The Debtors filed for chapter 11 petition on Oct. 30, 2006
(Bankr. D. Del. Case No. 06-11202).  Richard M. Cieri, Esq.,
Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan
Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel
for the Debtors' bankruptcy proceedings.  Mark D. Collins, Esq.,
Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of
Richards Layton & Finger, P.A. Attorneys are the Debtors' co-
counsel.  Baker & McKenzie acts as the Debtors' special counsel.

Togut, Segal & Segal LLP is the Debtors' conflicts counsel.
Miller Buckfire & Co., LLC is the Debtors' investment banker.
Glass & Associates Inc., gives financial advice to the Debtor.
Kurtzman Carson Consultants LLC handles the notice, claims and
balloting for the Debtors and Brunswick Group LLC acts as their
Corporate Communications Consultants for the Debtors.  As of
July 2, 2006, the Debtor had US$1,993,178,000 in total assets
and US$1,730,758,000 in total liabilities.

The Debtors Plan of Reorganization was filed on Aug. 22, 2007.
The Court approved the Disclosure Statement explaining that Plan
on Oct. 3, 2007.  Plan confirmation hearing is yet to be
scheduled.  The Debtors' exlusive plan filing period expires on
Jan. 24, 2008.  (Dura Automotive Bankruptcy News, Issue No. 42;
Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/
or 215/945-7000).


EL POLLO: S&P Affirms B- Corporate Credit Rating
------------------------------------------------
Standard & Poor's Ratings Services has revised its ratings
outlook on El Pollo Loco Inc. to stable from negative.  At the
same time, S&P affirmed its ratings, including the 'B-'
corporate credit rating, on the Costa Mesa, California-based
company.

The change in outlook comes after Freeman Spogli & Co. made a
US$45 million equity investment in El Pollo Loco Inc.'s parent,
which significantly enhances the company's liquidity and
financial flexibility and will allow El Pollo Loco to accelerate
new store growth, among other things.

"The company's liquidity was previously constrained because it
posted collateral for a bond against damages ruled against the
company in a trademark lawsuit," said S&P's credit analyst
Charles Pinson-Rose, "but now it has drastically enhanced
resources to fund growth capital expenditures than it did before
the judgment was rendered."

El Pollo Loco -- http://www.elpolloloco.com/-- pronounced "L
Po-yo Lo-co" and Spanish for "The Crazy Chicken," is the United
States' leading quick-service restaurant chain specializing in
flame-grilled chicken and Mexican-inspired entrees.  Founded in
Guasave, Mexico, in 1975, El Pollo Loco's long-term success
stems from the unique preparation of its award-winning "pollo"
-- fresh chicken marinated in a special recipe of herbs, spices
and citrus juices passed down from the founding family.


FIRST DATA: Moody's Drops Untendered Stub Notes' Rating to Caa1
---------------------------------------------------------------
Moody's Investors Service has lowered First Data Corporation's
untendered senior unsecured stub notes rating to Caa1 from A2.
Upon completion of the tender process, First Data had
approximately US$200 million of the pre-LBO senior unsecured
notes outstanding at the end of December 2007, of which US$68
million will be due in August 2008.  The downgrade of the
existing notes positions the rating at a level consistent with
the company's subordinated notes based on their junior position
within the capital structure.  The company's corporate family
rating of B2 and stable rating outlook remain unchanged.

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.


GLOBAL POWER: Elects David L. Willis as CFO & Sr. Vice Pres.
------------------------------------------------------------
Global Power Equipment Group Inc. appointed David L. Willis to
the position of senior vice president and chief financial
officer, effective Jan. 28, 2008.

Mr. Willis will take the place of Mike Hanson who will be
leaving the company to pursue other opportunities.  Mr. Hanson
will remain with the company until the end of February 2008,
allowing for an orderly transition of responsibilities.

"With David's wealth of financial and operations experience, he
is an exceptional addition to our senior management team," said
John Matheson, president and chief executive officer of Global
Power.  "With our executive group now complete, we look forward
to achieving our goals coming out of our successful
reorganization while continuing our focus on running the
business and servicing our customers.  We also thank Mike for
all of his contributions to the company and wish him well with
his future plans."

Mr. Willis has a broad range of leadership experience including
restructuring advisory services, telecommunications and energy
companies and public accounting. Most recently he was with the
restructuring practice of Alvarez and Marsal, a global
professional services firm, where he served clients in advisory
and interim management capacities overseeing the development and
implementation of initiatives to improve operational and
financial performance.

Prior to his restructuring practice, Mr. Willis held positions
with The Williams Companies, an energy and telecommunications
company, and with Ernst & Young.  Mr. Willis received his
Bachelor of Business Administration degree from the Price
College of Business at the University of Oklahoma and
holds a Master of Business Administration from the University of
Tulsa.  He is a Certified Public Accountant and a Certified
Insolvency Restructuring Advisor.

             About Global Power Equipment Group

Based in Oklahoma, Global Power Equipment Group Inc. (Pink
Sheets: GEGQQ) -- http://www.globalpower.com/-- is a design,
engineering and manufacturing firm providing an array of
equipment and services to the energy, power infrastructure and
process industries.  The company designs, engineers and
manufactures a comprehensive portfolio of equipment for gas
turbine power plants and power-related equipment for industrial
operations, and has over 40 years of power generation industry
experience.  The company's equipment is installed in power
plants and in industrial operations in more than 40 countries on
six continents.  In addition, the company provides routine and
specialty maintenance services to nuclear, coal-fired, fossil,
and hydroelectric power plants and other industrial operations.

The company has facilities in Plymouth, Minnesota; Tulsa,
Oklahoma; Auburn, Massachusetts; Atlanta, Georgia; Monterrey,
Mexico; Shanghai, China; Nanjing, China; and Heerleen, The
Netherlands.

The company filed for chapter 11 protection on Sept. 28, 2006
(Bankr. D. Del. Case No. 06-11045).  Thomas E. Lauria, Esq.,
Matthew C. Brown, Esq., Gerard Uzzi, Esq., John Cunningham,
Esq., and Frank Eaton, Esq., at White & Case LLP; and Jeffrey M.
Schlerf, Esq., Eric M. Sutty, Esq., and Mary E. Augustine, Esq.,
at The Bayard Firm, represent the Debtors.  Kurtzman Carson
Consultants LLC acts as the Debtors' noticing and claims agent.
At Oct. 31, 2006, Global Power's balance sheet showed total
assetsof US$177,758,000 and total debts of US$99,017,000

Jeffrey S. Sabin, Esq., and David M. Hillman, Esq., at Schulte
Roth & Zabel LLP; and Adam G. Landis, Esq., and Kerri K.
Mumford, Esq., at Landis Rath & Cobb LLP, represent the Official
Committee of Unsecured Creditors.  The Official Committee of
Equity Security Holders is represented by Howard L. Siegel,
Esq., and Steven D. Pohl, Esq., at Brown Rudnick Berlack Israels
LLP.


GREENBRIER CO: Earns US$2.6 Million in Quarter Ended Nov. 30
------------------------------------------------------------
The Greenbrier Companies reported US$2.6 million net earnings
for fiscal first quarter ended Nov. 30, 2007, compared to
US$1.9 million for the same period in 2007.

"While we achieved year-over-year growth, we experienced an
expected seasonal business slowdown on a sequential basis,"
William A. Furman, president and chief executive officer, said.
"Similar to last year, we anticipate improvement in our
financial results as the year progresses with earnings more
heavily weighted to the second half of the year.  This
anticipated earnings improvement is due principally to a more
favorable product mix, cost reduction initiatives, and lower
overall tax rate."

"A weaker overall economy, soft railcar loadings, and market
saturation of certain freight car types are all factors
contributing to caution on the part of our customers,"
Mr. Furman added.  "As a result, we are experiencing an
increasingly competitive new railcar market environment in north
america."

"All new railcar builders in north america are feeling these
effects, placing pressure on deliveries and margins,"
Mr. Furman stated.  "Our large backlog, efficient leasing
capability, new railcar product line expansion, and stronger
competitive footprint will keep us well positioned and very
competitive in the new railcar marketplace."

             Liquidity and Capital Resources

At Nov. 30, 2007, the company reported that:

   -- cash decreased US$14.1 million to US$6.7 million from
      US$20.8 million at Aug. 31, 2007;

   -- cash used in operations was US$8.8 million compared to
      US$41.9 million in Nov. 30, 2006.

   -- cash used in investing activities was US$12.6 million
      compared to US$274.2 million in the prior comparable
      period.

   -- capital expenditures totaled US$14.5 million compared to
      US$30.5 million in 2006.

   -- net proceeds received was US$186.6 million from borrowings
      under revolving credit lines.

At Nov. 30, 2007, the company's balance sheet showed total
assets of US$1.06 billion, total liabilities of US$0.81 billion
and total shareholders' equity ofUS$0.25 billion.

             About Greenbrier Companies Inc.

Headquartered in Lake Oswego, Oregon, Greenbrier (NYSE: GBX) -
http://www.gbrx.com/-- is a supplier of transportation
equipment and services to the railroad industry.  The company
builds new railroad freight cars in its three manufacturing
facilities in the U.S. and Mexico and marine barges at its U.S.
facility.  It also repairs and refurbishes freight cars and
provides wheels and railcar parts at 35 locations across north
america.  Greenbrier also builds new railroad freight cars and
refurbishes freight cars for the european market through both
its operations in Poland and various subcontractor facilities
throughout europe.  Greenbrier owns approximately 9,000
railcars, and performs management services for approximately
138,000 railcars.

                        *     *     *

The Greenbrier Cos. Inc. continues to carry Moody's Investors
Service's 'B1' long term corporate family rating, which was
placed in March 2007.


GRUPO MEXICO: Labor Board Says Cananea Strike Illegal
-----------------------------------------------------
Mexico's labor board declared Friday that the five-month strike
by workers of Grupo Mexico SAB's Cananea copper mine is illegal,
according to published reports.  The strikers obtained in
December 2007 authorization from a Mexican court to continue
their protests.

The order does not cover strikes at Grupo Mexico's San Martin
zinc mine and Taxco silver mine, Bloomberg relates.

The board said that the strike can't continue because of the
striking workers failed to follow proper procedure.  The order
asked the miners to return to work within 24 hours.  As a
result, police and the striking miners had clashed in the Sonora
state after picket lines were forcefully broken, Bill Weinberg
states, citing Reuters.

The clash was short-lived and miners are now back working on the
mines, Bloomberg says.

The union demanded, among other things, the enhancement of
safety precautions in the mines as about 65 miners were killed
in an explosion at a Grupo Mexico coalmine last year.  Grupo
Mexico alleged that the miners were holding demonstrations on
behalf of Napoleon Gomez,  the former union leader who was
facing corruption charges.

Grupo Mexico's international relations vice president Juan
Rebolledo told Business News Americas that the firm hopes the
workers will realize the importance of restarting operations at
Cananea and return to work even if court disputes regarding
contracts, safety or hygiene continue.

Mr. Rebolledo commented to BNamericas, "One should not interpret
this legal conflict as a way to take over [Cananea's]
installations and impede operations."

Grupo Mexico told BNamericas that it has offered the striking
workers solutions to their demands.  The firm repeated its offer
to hire independent experts to assess mine security and hygiene,
claiming that government officials said the workers' safety
would be assured.

According to the Daily Star, Grupo Mexico lost about US$600
million in sales due to the strike.

Some 80,000 tons of copper production were lost, Reuters says,
citing a source.

Grupo Mexico spokesperson Benjamin Bolanos told the Daily Star
that the inspection is being conducted at Cananea to determine
the damage sustained during the demonstrations.

"We were confident most of the workers didn't want the strike.
Almost everyone from the night shift went back to work.  That
means everything is going fine," Mr. Bolanos commented to the
Daily Star.

The union's Sonora representative Juan Gutierrez told the Daily
Star that employees were meeting Friday and planned to decide on
whether they will respect the federal decision.

The union will file an appeal to the labor board's ruling, the
Daily Star says, citing the union executive committee's head
Juan Linares.

The union told Reuters that if an appeal gets underway, Grupo
Mexico wouldn't be able to lay off protesting workers as it
threatened to do so in August 2007.

Union spokesperson Carlos Pavon commented to Reuters, "We have
the appeal ready and the lawyers are working on it right now."

The Daily Star states that Standard & Poor's Mexico City mining
analyst Juan Pablo Becerra said Grupo Mexico will need three
months to reach full production at Cananea.

A source told Mica Rosenberg at Reuters, "It will take a few
days to start the initial work, but we will need a lot longer to
get a significant level of production going."

The Mexican labor's ruling marked the first time Grupo Mexico
was able to get into Cananea since the protest started, Reuters
states.

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

                        *     *     *

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


HASBRO INC: Inks Licensing Agreement with Thorley Industries
------------------------------------------------------------
Hasbro Inc. has reached a licensing agreement with Thorley
Industries LLC on two new products to be launched in 2008.  The
parties have also entered into a development agreement for
additional products to be developed over the next twelve months.

"We are thrilled to be working with Hasbro," said Robert Daley,
Co-Founder and CEO of Thorley Industries.  "Hasbro is a
worldwide leader in children's products and we are excited to
have reached this agreement."

"The Thorley team is exceptionally innovative," said Duncan
Billing, Hasbro's Chief Marketing Officer.  "We have been very
impressed by their unique ability to marry technological
innovation with a deep understanding of consumer needs to
develop revolutionary new products."

                        About Hasbro

Headquartered in Pawtucket, Rhode Island, Hasbro, Inc. (NYSE:
HAS) -- http://www.hasbro.com/-- provides children's and family
leisure time entertainment products and services, including the
design, manufacture and marketing of games and toys ranging from
traditional to high-tech.  The company has operations in
Australia, France, Hong Kong, and Mexico, among others.

                        *     *     *

Moody's Investors Service affirmed the Baa3 long-term debt
rating of Hasbro, Inc., and changed the ratings outlook to
positive from stable to reflect the expectation for continued-
strong operating performance and cash flows, leading to further
debt reduction and credit metric improvement over the near-to-
intermediate-term.  Ratings affirmed include the Baa3 senior
unsecured debt rating and the (P)Ba1 rating for subordinated
debt.


HILLMAN COS: CEO Reports Preferred Securities Cash Distribution
---------------------------------------------------------------
The Hillman Companies, Inc.'s Chief Executive Officer, Max W.
Hillman, has announced a cash distribution declared by Hillman
Group Capital Trust for the month of January 2008 in the amount
of US$0.241667 for each Trust Preferred Security (Amex: HLM_P).
The distribution will be payable Jan. 31, 2008, to holders of
record Jan. 21, 2008.

The Hillman Companies, Inc. -- http://www.hillmangroup.com--
manufactures key making equipment and distributes key blank,
fasteners, signage and other small hardware components.  The
company sells and markets to hardware stores, home centers and
mass merchants in the United States, Canada, Mexico and South
America.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Oct. 29, 2007, Moody's Investors Service has downgraded the
speculative grade liquidity rating of Hillman Companies Inc. to
SGL 3 from SGL 2 and revised the company's rating outlook to
negative, based on concerns that Hillman may breech a financial
covenant over the next year if its operating performance were to
moderate.  At the same time, all of Hillman's other ratings,
including its B2 corporate family rating, were affirmed.

Rating downgraded:

-- Speculative grade liquidity rating to SGL 3 from SGL 2;

Ratings affirmed:

-- Corporate family rating at B2;

-- Probability of default rating at B2;

-- US$40 million senior secured revolving credit facility at
    Ba3 (LGD 2, 23%) due 2012

-- US$235 million senior secured term loan Ba3 (LGD 2, 23%)
    due 2013.


TELE NORTE: Brasil Telecom Talks Get Government Support
-------------------------------------------------------
Brasil Telecom's sale negotiations with Oi, fka Tele Norte Leste
Participacoes, is getting the Brazilian government's support in
a bid to limit control exerted by foreign-owned telecom firms in
the market.

The Financial Times says that Oi's US$2.7-billion purchase of
Brasil Telecom will prevent a Telefonica-Telmex dominance in the
industry.

Telefonica SA is a Spanish telcom giant while Telmex is owned by
Mexican bililonaire Carlos Slim, the world's richest man.

The merging of the two local telcos will strengthen their
position in the market and will allay the government's fears
that separately, each company is no match for the Spanish and
Mexican duo, the FT says.

"The Oi-BrT merger would create a roughly level playing field
where none of the three companies dominate," Ricardo Arajjo
Silva, a telecoms analyst at Banco Itau in Sao Paulo told the
FT.

Business News Americas said that under the deal, Telemar Norte
offers BRL4.8 billion for holding company Solpart, which
controls Brasil Telecom.

Solpart is controlled by Citigroup, Opportunity Asset Management
and Brazilian pensin funds, news daily Valor Economico says.

Telemar Norte is controlled by La Fonte, Andrade Gutierrez, GP
Investimentos, pension funds, and Brazilian development bank
BNDES.

While the deal may face antitrust problems, analysts said in
reports that legislative changes will be made to accommodate the
merger.

                    About Brasil Telecom

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

                    About Telemar Norte

Headquartered in Rio de Janeiro, Brazil, Tele Norte Leste
Participacoes SA -- http://www.telemar.com.br-- is a provider
of fixed-line telecommunications services in South America.  The
company markets its services under its Telemar brand name.  Tele
Norte's subsidiaries include Telemar Norte Leste SA; TNL PCS SA;
Telemar Internet Ltda.; and Companhia AIX Participacoes SA.

As reported on April 27, 2007, Standard & Poor's placed on
CreditWatch with negative implications the 'BB+' corporate
credit rating on Tele Norte Leste Participacoes S.A.  The
creditwatch resulted from TmarPart's decision to buy out its
holding company's preferred shares.


URS CORP: Brings In Thomas Zarges as Washington Unit President
--------------------------------------------------------------
URS Corporation has appointed Thomas H. Zarges as President of
the Washington Division.  Mr. Zarges, who formerly served as the
Division's Senior Executive Vice President for Operations,
replaces Stephen G. Hanks, who is retiring from the company and
resigning from the URS Board of Directors.

URS' Washington Division is the former Washington Group
International, Inc., which URS acquired in November 2007.

"Tom is an experienced executive with a comprehensive
understanding of the Washington Division, gained through more
than 30 years with the business," said Martin M. Koffel,
Chairman and Chief Executive Officer of URS.  "He has directed
Washington Group's power, engineering and construction, and
industrial process businesses, and has managed all of Washington
Group's operations since 2002.  He is ideally suited to lead the
Division as we integrate our complementary service offerings and
work to capture the many new opportunities available to URS and
our 55,000 employees."

"I am proud to lead the Washington Division and the exceptional
group of professionals that have been the key to our success,"
said Thomas Zarges.  "Now, as part of one of the few fully
integrated engineering, construction and technical services
companies in our industry, our potential is greater than ever.
I look forward to working with Martin and the entire URS
management team and continuing to deliver results for our
stockholders, customers and employees."

Mr. Koffel continued, "I would like to thank Steve for helping
to make the combination between URS and Washington Group a
reality.  The strength of the Washington Division's business and
the quality and depth of its management team attest to Steve's
leadership.  We wish him well in the future."

The appointment of Mr. Zarges as President of the Washington
Division is effective immediately.

                 Biographical Information

Thomas Zarges has more than 35 years of experience in global
engineering and construction.  He joined Washington Group in
1991 as President of Power and Industrial/Manufacturing.  He
later served as President of the company's
Engineering/Construction and Industrial/Process business units.
He was named Senior Executive Vice President of Operations in
2002.  Earlier in his career, Mr. Zarges served with United
Engineers & Constructors, a predecessor firm to Washington
Group, for 20 years.  He is a 1970 engineering graduate of the
Virginia Military Institute.

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

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Dec. 7, 2007, Moody's Investors Service has downgraded the
Corporate Family Rating of URS Corporation to Ba2 from Ba1
following the company's acquisition of Washington Group
International, Inc.  Moody's said the ratings outlook is stable.


VITRO SAB: Inks Agreement with Electric Energy
----------------------------------------------
Vitro S.A.B. de C.V. has signed an agreement with the Electric
Energy Savings Mexican Commission for the purpose of making all
of the industrial facilities of Vitro in the country more energy
efficient through the reduction in the amount of greenhouse
emissions.

Under the agreement, Vitro, in addition to developing energy
savings programs, will conduct massive awareness programs on the
subject, will promote the substitution of high energy consuming
equipment for more energy efficient ones and will expand the
technical training of its affiliates on the subject of energy
efficiency in all of its installations in Mexico.

For its part FIDE will promote energy savings programs within
Vitro's manufacturing facilities, to workers and suppliers and
will help finance the purchase of high-energy efficient
equipment.

The agreement, which becomes effective Jan. 10, was signed by
Enrique Osorio, Chief Financial Officer and Alejandro Sanchez
Mujica, Executive Vice-President Legal and General Council, on
behalf of Vitro and by Pablo Realpozo Del Castillo, General
Director of FIDE and Jose Luis Hernandez Galan, Assistant
Director for Regional Projects and Development of the same
organization.

Referring to the agreement, Enrique Osorio commented that
"during the current year we will be conducting energy
diagnostics on which we will base the action plans that will
allow us to achieve the desired energy savings in our plants.
Nevertheless, in this first stage we are expecting to be able to
achieve energy savings in the range of 3% to 5%".

He added that the projects undertaken in the Vitro manufacturing
plants may include energy diagnostics and the replacement of
inefficient equipment with more energy efficient ones, which
will be financed by FIDE at preferential rates that will be paid
on the basis of the realized energy savings.

Alejandro Sanchez Mujica pointed out that "Vitro voluntarily has
embarked on important initiatives to meet or surpass national
and international standards for environmental protection;
convinced that the true progress of a company does not only
focus on economic objectives but also must be respectful of the
environment, worker safety and environmental protection of the
communities where we conduct business".

He emphasized that through more efficient energy savings, we
will avoid thousands of tons of harmful contaminant emissions
and greenhouse effect gases that contribute to global warming.

"This initiative will permit the implementation of action plans
for electrical energy savings in the Vitro plants, engage the
use of highly energy efficient equipment and promote the
creation of a culture of energy savings among company employees
while significantly reducing energy consumption without
compromising the quality of the products they produce", pointed
out Pablo Realpozo Del Castillo.

He added that through this effort the Vitro companies not only
will become more competitive by reducing electric energy costs
through integration of state of the art technology, but they
will be contributing to the preservation and conservation of the
environment.

As the agreement goes into effect immediately upon its signing,
the different Vitro facilities can present their proposals for
energy savings to FIDE as of Jan. 10.

The agreement contemplates the certification of the products
manufactured by Vitro as having contributed to the efficient use
of electric energy.  The "FIDE Seal" identifies those
outstanding products that save energy in their manufacturing
process while enhancing the prestige of the brand.

"In the case of flat glass a great opportunity presents itself,
since thermal glass is used in construction projects for housing
and commercial applications which generates a reduction in
heating and cooling needs in the homes and buildings where it is
used and, therefore, the end result is less dependence on
electrical energy", he assured.

The signing of this agreement adds to the multiple efforts of
Vitro to promote sustainable development by implementing
initiatives that seek to increase its competitiveness while at
the same time promote a cleaner environment and a safer work
place.

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.




=======
P E R U
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QUEBECOR WORLD: Gets CDN$400-Million Rescue Financing Proposal
--------------------------------------------------------------
Quebecor World Inc. has received a binding proposal with respect
to a potential CDN$400 million rescue financing submitted
jointly by Quebecor Inc. and Tricap Partners Ltd.  Quebecor Inc.
is the controlling shareholder of Quebecor World holding
approximately 84.5% of the voting interests and 35.5% of the
equity interests in the company.  Quebecor World understands
that Tricap Partners is a private equity fund managed by
Brookfield Asset Management Inc.  Management of Quebecor World
has determined, after a preliminary review with its advisors,
that the submitted proposal is meaningful and serious in light
of the circumstances and the company's current financial
situation.

Quebecor's Board of Directors has established a special
committee of independent directors for the purpose, among other
matters, of reviewing and considering the terms of the rescue
financing proposal, and the Board, the Independent Committee and
company management, together with their various financial and
legal advisors, will diligently review and consider the terms of
the financing proposal in the coming days.

                  About Quebecor World Inc.

Headquartered in Montreal, Quebec, Canada, Quebecor World Inc.
(TSX: IQW) (NYSE: IQW) -- http://www.quebecorworld.com/--
provides marketing and advertising solutions to leading
retailers, catalogers, branded-goods companies and other
businesses with marketing and advertising activities, as well as
complete, full-service print solutions for publishers.  The
company's major product categories include advertising inserts
and circulars, catalogs, direct mail products, magazines, books,
directories, digital premedia, logistics, mail list technologies
and other value-added services.  Quebecor World has
approximately 27,500 employees working in more than 120 printing
and related facilities in the United States, Canada, Argentina,
Austria, Belgium, Brazil, Chile, Colombia, Finland, France,
India, Mexico, Peru, Spain, Sweden, Switzerland and the United
Kingdom.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Dec. 21, 2007, Moody's Investors Service has downgraded Quebecor
World Inc.'s corporate family rating by two notches to Caa2.

As reported in the Troubled Company Reporter-Latin America on
Dec. 21, 2007, Standard & Poor's Ratings Services lowered its
long-term corporate credit rating on Montreal-based printing
company Quebecor World Inc. two notches to 'CCC' from 'B-'.

In addition, Standard & Poor's lowered the senior unsecured debt
rating on the company by three notches to 'CCC-' from 'B-',
reflecting the junior position of the notes in relation to
Quebecor World's US$750 million revolving credit facility
(unrated), which is fully guaranteed and partially secured, and
the high likelihood that the company's debt level will increase
in the near term.




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


DENNY'S CORP: Sept. 26 Balance Sheet Upside-Down by US$201.1 Mln
----------------------------------------------------------------
Denny's Corp.'s consolidated balance sheet at Sept. 26, 2007,
showed US$412.9 million in total assets and US$614.0 million in
total liabilities, resulting in a US$201.1 million total
stockholders' deficit.

The company's consolidated balance sheet at Sept. 26, 2007, also
showed strained liquidity with US$63.3 million in total current
assets available to pay US$128.7 million in total current
liabilities.

The company reported net income of US$5.3 million for the third
quarter ended Sept. 26, 2007, a decrease of US$20.2 million
compared with prior year net income of US$25.5 million.
Adjusted income before taxes for the third quarter was US$5.8
million, compared with prior year income of US$5.6 million.
This measure, which is used as an internal profitability metric,
excludes restructuring charges, exit costs, impairment charges,
asset sale gains, share-based compensation, other nonoperating
expenses and income taxes.

For the third quarter of 2007, Denny's reported total operating
revenue, including company restaurant sales and franchise
revenue, of US$241.4 million compared with US$258.2 million in
the prior year quarter.  The company restaurant sales component
of total revenue decreased US$17.9 million due primarily to a
significant reduction in company restaurants from the prior year
period.

Same-store sales growth of 1.3% at company restaurants partially
offset the impact of fewer restaurants.  During the third
quarter, Denny's opened two new company restaurants and sold 22
to franchisee operators.  The sale of 56 company restaurants
this year under the Franchise Growth Initiative combined with
the closure of underperforming restaurants in the prior year
resulted in 51 fewer equivalent units in this year's third
quarter.

Franchise revenue increased US$1.1 million to US$24.6 million as
a result of a US$1.9 million increase in royalties and initial
fees, partially offset by a decrease of approximately US$800,000
in occupancy revenue.

Nelson Marchioli, president and chief executive officer, stated,
"Our third quarter results reflect further progress on our
strategic initiatives and a proactive approach to managing our
business in a difficult environment.  We delivered positive
same-store sales on top of strong comparable sales in the prior
year, and we achieved adjusted income growth even as we
significantly decreased the number of company restaurants
through our Franchise Growth Initiative.

"Our development programs are building momentum with 56
restaurants sold to franchisees and franchisee commitments for
71 new restaurants.  Our increasing cash flow from operations,
along with the proceeds from asset sales, has strengthened our
balance sheet as we have reduced our debt by more than US$45.0
million this year.  While we expect the current pressures facing
our industry on both sales and costs will persist in the near
term, we are confident that as we execute on our strategic
initiatives we will continue driving long-term shareholder
value."

Operating income for the third quarter decreased US$39.3 million
to US$16.3 million due primarily to operating gains of US$36.7
million in the prior year period.  Excluding this item in both
periods, operating income for the third quarter decreased US$3.3
million on US$16.8 million less in revenue.

Interest expense for the third quarter decreased US$4.5 million,
or approximately 30%, to US$10.5 million due primarily to
reduced debt balances and improved borrowing costs.

During the third quarter, net cash proceeds from asset sales
along with cash flow from operations were used to reduce
outstanding debt by US$26.6 million.  Year-to-date, total
outstanding debt has been reduced by US$45.2 million, or
approximately 10.0%.

Full-text copies of the company's consolidated financial
statements for the quarter ended Sept. 26, 2007, are available
for free at http://researcharchives.com/t/s?26fa

                 About Denny's Corporation

Headquartered in Spartanburg, South Carolina, Denny's
Corporation (Nasdaq: DENN) -- http://www.dennys.com/-- is a
full-service family restaurant chain, consisting of 394 company-
owned units and 1,152 franchised and licensed units, with
operations in the United States, Canada, Costa Rica, Guam,
Mexico, New Zealand and Puerto Rico.

                        *     *     *

Denny's Corp. carries Standard & Poor's 'B+' Long Term Foreign
Issuer and 'B+' Long Term Local Issuer ratings.




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


CHRYSLER LLC: Confirms OEM Product Agreement with Nissan Motor
--------------------------------------------------------------
Chrysler LLC and Nissan Motor Co., Ltd., disclosed an agreement
for Nissan to supply Chrysler with a new car for limited
distribution in South America. Based on the Nissan Versa sedan,
the new car will be supplied to Chrysler on an Original
Equipment Manufacture basis in 2009.

The OEM supply agreement is the second product exchange between
the two corporations, with Nissan affiliate JATCO already
supplying Chrysler with transmissions since 2004.

"This kind of tactical partnership allows us to maximize product
offerings yet minimize costly investments, such as new plant
infrastructure, tooling and R&D," Chrysler LLC President and
Vice Chairman Tom LaSorda said.  "This partnership will give
Chrysler nearly immediate access to vehicle segments in which we
do not currently compete."

"Nissan has a successful track-record of win-win product
exchanges and we are pleased to be entering into this second
agreement with Chrysler," Carlos Tavares, Executive Vice
President, Nissan Motor Company, said.

The two companies have also agreed to maintain an open dialogue
to explore further product-sharing opportunities.

                     About Nissan Motor

Headquartered in Tokyo, Japan, Nissan Motor Co., Ltd. --
http://www.nissan-global.com/-- provides automotive products
and services that deliver superior measurable values to all
stakeholders in alliance with Renault.

                     About Chrysler LLC

Headquartered in Auburn Hills, Michigan, Chrysler LLC --
http://www.chrysler.com/-- a unit of Cerberus Capital
Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R)
brand vehicles and products.  The company has dealers worldwide,
including Canada, Mexico, U.S., Germany, France, U.K.,
Argentina, Brazil, Venezuela, China, Japan and Australia.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Dec. 11, 2007, Standard & Poor's Ratings Services revised its
recovery rating on Chrysler's US$2 billion senior secured
second-lien term loan due 2014.  The issue-level rating on this
debt remains unchanged at 'B', and the recovery rating was
revised to '3', indicating an expectation for meaningful (50% to
70%) recovery in the event of a payment default, from '4'.


CHRYSLER LLC: Working with Midwest Entities in Research Project
---------------------------------------------------------------
Chrysler LLC is partnering with a major Midwest utility company
and university researchers in a project to determine if paint
solid residues from automobile manufacturing can reduce
emissions of mercury from electric power plants.

For the past year, Chrysler has recycled paint solid residues
from its two St. Louis assembly plants for use as an alternative
fuel in Ameren Corporation's nearby Meramec electric utility
plant.  Prior to this project, Chrysler's St. Louis plants were
sending one million pounds of dried paint solids to landfill
each year.

Now, the paint solids replace about 570 tons of coal per year in
the Ameren plant.

The paint solid residues contain titanium dioxide, which has the
potential to remove mercury from coal-powered plant emissions
without affecting other processes in the plant.  Mercury is
chemically bonded with titanium oxide, a process known as
chemisorption, and thus is potentially easier to trap in the
plant's emissions scrubber system, research has found.

"Our 'Paint to Power' program in St. Louis is a recycling
success story.  Rather than filling up scarce landfill space, we
are using these paint wastes to produce power for St. Louis
residents and businesses," said Chrysler Vice President of
Regulatory Affairs, Deborah L. Morrissett.

"Now we may be able to build on that success to further protect
the environment from mercury emissions," Ms. Morrissett said.

The effectiveness of titanium dioxide in controlling mercury
emissions has been demonstrated in the laboratory and recent
field studies, according to Dr. Pratim Biswas, chairperson of
the Department of Energy, Environmental and Chemical Engineering
at Washington University in St. Louis.  Dr. Biswas is heading up
the project to test the process in a full-scale power plant.

Dr. Biswas and his research team have demonstrated the ability
of nanostructured titanium dioxide to remove mercury with
greater than 95 percent efficiency.  Recently concluded tests in
a pilot scale facility have further corroborated the results of
the laboratory research.

Mercury is released into the environment in trace quantities
from the burning of coal in electric-generating plants.  The
amount of titanium dioxide in the paint solids from the Chrysler
plants would be sufficient to remove the trace amounts of
mercury from power plant emissions, Dr. Biswas said.

The electric power industry is currently studying the use of
various other chemicals to remove mercury from power plant
emissions.  The United States government has implemented the
world's first requirements to cut mercury emissions from
electric power plants.

Through its collaboration with Chrysler's St, Louis assembly
plants, Ameren Corp.'s 855-megawatt Meramec power plant is the
first in the nation to generate electricity by burning paint
solids recovered from an automotive manufacturing facility.  In
the initial phase, the project produces enough electricity to
power 70 homes for a year.

The project has been recognized with a pollution prevention
award from the St, Louis chapter of the National Association of
Environmental Managers and with an Environmental Leadership
Award from Chrysler.

                    About the Partners

Chrysler LLC's two St. Louis assembly plants manufacture the
Dodge Ram light- and heavy-duty pickup trucks and the Chrysler
Town & Country and Dodge Grand Caravan minivans.

St. Louis-based Ameren Corp. and its subsidiaries serve 2.4
million electric customers in Missouri and Illinois.

Washington University in St. Louis is an internationally
recognized independent teaching and research center with
approximately 3,100 faculty and 11,000 students.

                     About Chrysler LLC

Headquartered in Auburn Hills, Michigan, Chrysler LLC --
http://www.chrysler.com/-- a unit of Cerberus Capital
Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R)
brand vehicles and products.  The company has dealers worldwide,
including Canada, Mexico, U.S., Germany, France, U.K.,
Argentina, Brazil, Venezuela, China, Japan and Australia.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Dec. 11, 2007, Standard & Poor's Ratings Services revised its
recovery rating on Chrysler's US$2 billion senior secured
second-lien term loan due 2014.  The issue-level rating on this
debt remains unchanged at 'B', and the recovery rating was
revised to '3', indicating an expectation for meaningful (50% to
70%) recovery in the event of a payment default, from '4'.


PETROLEOS DE VENEZUELA: Implements Drilling Technology in RG 278
----------------------------------------------------------------
Euro-Petrole reports that Venezuelan state-run oil firm
Petroleos de Venezuela SA's unit PDVSA Gas has implemented a
highly inclined drilling technology in the RG 278 well in the
Santa Rosa oilfield in Anzoategui.

Petroleos de Venezuela came up with a pilot project to drill
shallow deposits and get the technical and economic feasibility
to develop significant, easily accessible gas reserves of 800-
900 feet deep that had been not developed.

According to Euro-Petrole, the technology will be implemented in
14 wells included in Anaco's major area.  It will increase the
gas production in the country by 110 million cubic feet.  The
new strategy will help "run two shallow deposits concomitantly,
resulting in high productivity levels and profitable
operations."

Testing and the first stage of production of RG 278 was
successful and surpassed PDVSA Gas' expectations without the
need for more expenses, Euro-Petrole 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.

                             *     *

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


* VENEZUELA: Chavez Orders Halt on Asphalt Exports
--------------------------------------------------
Venezuelan President Hugo Chavez has recently ordered a stop to
asphalt exports saying the materials should be saved for local
use, Bloomberg News reports.

"Stop the exports of asphalt," President Chavez told Energy and
Oil Minister Rafael Ramirez during the weekly presidential
television broadcast, Bloomberg relates.  The Venezuelan leader
also warned companies that they'll be nationalized once proven
that they are exercising monopolies and causing delays on
projects.

This latest mandate could affect supply in the United States
since Venezuela is its biggest foreign supplier of asphalt.

According to Bloomberg, the U.S. received 739,000 barrels of
asphalt directly from Venezuela in October 2007.

                        *     *     *

As reported in the Troubled Company Reporter on Nov. 20, 2006,
Fitch Ratings affirmed Venezuela's long-term foreign and local
currency Issuer Default Ratings at 'BB-'.  At the same time, the
agency also affirmed the short-term foreign currency IDR at
'B'and the Country Ceiling at 'BB-'.  Fitch said the outlook on
the ratings remains stable.


* VENEZUELA: Gets US$50-Million Loan for Water Treatment Works
--------------------------------------------------------------
The Andean Development Corporation has granted a US$50 million
financing to fund programs of water treatment networks
construction and expansion in eight states in Venezuela,
published reports say.

Reuters relates that about US$72.3 million is the estimated
overall cost for the Program of Drinkable Water and Sanitation
in Urban and Rural Areas while the remaining funds to be
provided by domestic entities.

CAF President and Chief Executive Officer Enrique Garcia, in a
communique, said: "This contribution is to secure improved life
quality for the inhabitants in marginalized areas in eight
Venezuelan states and help meet the goals of the millennium set
by Venezuela," El Universal states.

The loan will also fund projects in the states of Amazonas,
Anzoategui, Aragua, Bolivar, Cojedes, Delta Amacuro, Sucre, and
Trujillo.

                        *     *     *

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.


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

                                   Total
                               Shareholders  Total
                                   Equity    Assets
Company                 Ticker      (US$MM)   (US$MM)
-------                 ------  ------------  -------
Arthur Lange             ARLA3     (23.61)      52.76
Kuala                    ARTE3     (33.57)      11.86
Bombril                  BOBR3    (472.88)     413.81
Caf Brasilia             CAFE3    (876.27)      42.83
Chiarelli SA             CCHI3     (63.93)      50.64
Ceper-Inv                CEP        (7.77)     120.08
Ceper-B                  CEP/B      (7.77)     120.08
CIC                      CIC    (1,883.69)  22,312.12
Telefonica Hldg          CITI   (1,481.31)     307.89
Telefonica Hldg          CITI5  (1,481.31)     307.89
SOC Comercial PL         COME     (793.61)     439.83
Marambaia                CTPC3      (1.38)      79.73
DTCOM-DIR To Co          DTCY3     (14.16)       9.24
Aco Altona               ESTR      (49.52)     113.90
Estrela SA               ESTR3     (62.09)     118.58
Bombril Holding          FPXE3  (1,064.31)      41.97
Fabrica Renaux           FTRX3      (5.55)     136.60
Cimob Partic SA          GAFP3     (63.56)      94.60
Gazola                   GAZ03     (43.13)      22.28
Haga                     HAGA3    (114.40)      17.96
Hercules                 HETA3    (240.65)      37.34
Doc Imbituba             IMB13     (20.49)     209.80
IMPSAT Fiber Networks    IMPTQ     (17.16)     535.01
Minupar                  MNPR3     (39.46)     154.47
Nova America SA          NOVA3    (300.97)      41.80
Recrusul                 RCSL3     (59.33)      25.19
Telebras-CM RCPT         RCTB30   (149.58)     236.49
Rimet                    REEM3    (219.34)      93.47
Schlosser                SCL03     (75.19)      47.05
Semp Toshiba SA          SEMP3      (4.68)     153.68
Tecel S Jose             SJ0S3     (13.24)      71.56
Sansuy                   SNSY3     (67.08)     201.64
Teka                     TEKA3    (331.28)     536.33
Telebras SA              TELB3    (149.58)     236.49
Telebras-CM RCPT         TELE31   (149.58)     236.49
Telebras SA              TLBRON   (148.58)     236.49
TECTOY                   TOYB3      (3.79)      38.65
TEC TOY SA-PREF          TOYB5      (3.79)      38.65
TEC TOY SA-PF B          TOYB6      (3.79)      38.65
TECTOY SA                TOYBON     (3.79)      38.65
Texteis Renaux           TXRX3    (103.01)      76.93
Varig SA                 VAGV3  (8,194.58)   2,169.10
FER C Atlant             VSPT3    (104.65)   1,975.79
Wiest                    WISA3    (140.97)      71.37


                         ***********


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

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

Copyright 2008.  All rights reserved.  ISSN 1529-2746.

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

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

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


              * * * End of Transmission * * *