TCRLA_Public/080204.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

            Monday, February 4, 2008, Vol. 9, Issue 24

                          Headlines

A R G E N T I N A

ALITALIA SPA: Wants EUR750 Mln Capital Hike in First Half 2008
BANCO MACRO: Further Postpones US$100 Million Bond Issuance
FIDEICOMISO FINANCIERO: Moody's Rates Debt Securities at B2
FORD MOTOR: Nears Deal w/ Tata on Jaguar & Land Rover Sale
GETTY IMAGES: Reports US$125.9-Mln Net Income in Full Year 2007

INSTAL TUBE: Proofs of Claim Verification Is Until Tomorrow
INVERGE SA: Proofs of Claim Verification Ends Tomorrow
NORTHWEST AIRLINES: Completes Acquisition of Midwest Air Group
SCO GROUP: Tanner LC Expresses Going Concern Doubt

* ARGENTINA: MIF To Finance Venture Capital Fund for Companies

B A H A M A S

ULTRAPETROL (BAHAMAS): S&P Revises Stable Outlook to Positive

B E L I Z E

ANDREW CORP: Completes Satellite Comm Biz Sale to Resilience

B E R M U D A

FOSTER WHEELER: Selects Three New Directors on Board
FOSTER WHEELER: UK Subsidiary Bags Project Management Contract
SCOTTISH RE: S&P Lowers Counterparty Credit Rating to B from B+

B R A Z I L

BANCO BRADESCO: Paying Almost BRL1.2 Bln. for Agora Corretora
BANCO PINE: Will Increase Lending by 60% in 2008
BANCO RURAL: Earns BRL26.9 Million in 2007 After 2006 Losses
CA INC: Earns US$163 Million in Third Quarter Ended Dec. 31
COMMSCOPE INC: Andrew Closes Satellite Biz Sale to Resilience

GOL LINHAS: Profit Margin Drops in 2007
HUGHES NETWORK: EMBARQ Joins as Internet Service Reseller
JAPAN AIRLINES: To Slash Discount Fares Up to 80%
PARANA BANCO: Seeks Susep's Okay for New Local Reinsurance Firm
STRATOS GLOBAL: Improved Credit Prompts Moody's Outlook Change

TEREOS: Weak Credit Metrics Cue Moody's Outlook Change to Neg.

* BRAZIL: Central Bank Demands More Reserves from Banks
* BRAZIL: Fitch Says EU Beef Ban Has Near-Term Effect
* BRAZIL: Petroleo Brasileiro Launches Sepe Tiraju in Rio Grande
* BRAZIL: Receives US$22 Million Loan from Global Environment

C A Y M A N   I S L A N D S

BERNARD NATIONAL: Sets Final Shareholders Meeting for February 7
CSFUND-THREE HOLDINGS: Final Shareholders Meeting on February 7
DANIEL REWALT: Holding Final Shareholders Meeting on February 7
DUKE FUNDING: Sets Final Shareholders Meeting for February 7
ENHANCED MORTGAGE-BACKED: Final Shareholders Meeting on Feb. 7

GEMINI SHIPHOLDING: Holding Final Shareholders Meeting on Feb. 7
PARMALAT SPA: Announces Dividend for Financial Year 2007
QGPC FINANCE: To Hold Final Shareholders Meeting on February 7
SH CAPITAL: Sets Final Shareholders Meeting for February 7
TRUMBULL RATED: Final Shareholders Meeting is on February 7
TRUMBULL THC: Holding Final Shareholders Meeting on February 7

C H I L E

NOVA CHEMICALS: Earns US$347 Million in Fiscal Year 2007

C O L O M B I A

BANCO DE BOGOTA: 2007 Earnings Increase 61.8% to COP291 Billion

C O S T A   R I C A

US AIRWAYS: Moves Pact Assumption Hearing to February 21

D O M I N I C A N   R E P U B L I C

Affiliated Computer: To Provide Ticketing System in Latvian City

E C U A D O R

* ECUADOR: To Open US$5-Billion Refinary Project with Venezuela

E L   S A L V A D O R

HERBALIFE LTD: Paying US$0.20 Per Share Dividend on March 24

G U A T E M A L A

FLOWSERVE CORP: Discloses Full Year EPS Range of US$5.10-US5.40

J A M A I C A

AIR JAMAICA: Orlando-Jamaica Service Will be Once-a-Day
DIGICEL: Buying Anti-Fraud Software from Ectel

* JAMAICA: Partners with World Bank for Development

M E X I C O
CINRAM INT'L: Weak Financial Performance Cues S&P to Cut Ratings
HARMAN INT'L: Appoints Robert Lardon as Investor Relations VP
HERCULES OFFSHORE: EarnS US$31.3 Million in Fourth Quarter 2007
INTERTAPE POLYMER: Ups Supply Chain Efficiency w/ Logility Inc.
GRUPO MEXICO: Eyes 7.3% Increase in Unit's Copper Output

MAXCOM TELECOM: Moody's Confirms B3 Ratings w/ Positive Outlook
PAPELES INDUSTRIALES: Fitch Withdraws B+ Issuer Default Ratings
SANMINA-SCI CORP: Fitch Affirms B+ Issuer Defualt Rating
TIMKEN CO: Full Year 2007 Net Income Drops to US$220 Million
TRIMAS CORP: Cequent Acquires Parkside Towbars of West Australia
WESCO INT'L: Reports US$61-Mln Net Income in Fourth Quarter 2007

N I C A R A G U A

* NICARAGUA: Dairy Producers All Eyes on Venezuela

P U E R T O   R I C O
AGILENT TECH: Files Lawsuit to Protect Liquid Chormatography IP
CELESTICA INC: Fourth Quarter 2007 GAAP Net Loss is US$11.7-Mln
HORIZON LINES: Board Moves to Declare US$0.11 Per Share Dividend
STANDARD MOTOR: Paying US$0.09 Per Share Dividend on March 3

V E N E Z U E L A

LEAR CORP: Incurs US$645-Million Net Loss in Fourth Quarter 2007
PEABODY ENERGY: Earns US$421.3 Million in Qtr. Ended December 31
PETROLEOS DE VENEZUELA: Social Program Expenses Put Firm at Risk

* VENEZUELA: Ecuador To Open US$5-Bil. Refinary Project in 2012

* BOND PRICING: For the Week January 28 to February 1


                         - - - - -


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

ALITALIA SPA: Wants EUR750 Mln Capital Hike in First Half 2008
--------------------------------------------------------------
Alitalia S.p.A.'s board of directors has approved, among other
items, its 2008 Budget.

The company relates that while waiting for the definitive
decision regarding the future ownership of the company and in
line with the 2008-2010 Industrial Plan approved on the Sept. 7,
2007, the 2008 Budget pursues the top priority and binding
target of reducing the company's unsustainable losses trend and
the erosion of its equity and cash-to-hand levels.

In the context of increasingly adverse implementation issues due
to internal and external factors, the Budget, the company says,
reconfirms the need for a substantial injection of financial
resources by an increase of the capital.

The 2008 Budget, developed on an industrial stand-alone basis,
reconfirms strategic actions marked by strong discontinuity for
the implementation of the Plan for survival/transition, and in
particular regarding:

    * resizing of the capacity offered to take into account the
      actual market opportunities;

    * domestic and long-haul markets consolidation on a single
      hub strategy to serve transfer traffic to/from Italy;

    * international network rationalization;

    * redesigning products to take into account specific market
      features;

    * re-launching the Italian brand;

    * regaining market share on currently underperforming
      strategic markets and routes;

    * increasing Cargo profitability; and

    * developing low-cost business on the international network
      and domestic by-pass, with reasonable profitability
      levels.

With respect to the Plan, the company relates that the 2008
Budget is affected by a slower implementation of the industrial
actions foreseen on both revenues side and costs side due to
strong scenario impacts as well as the significant fuel cost
increase.  To account for the consequent lower positive returns,
the Budget considers an additional reduction in activity and
further network rationalization compared to the Plan for
survival/transition in 2008.

Therefore the expected industrial operating 2008 margin,
although slightly improved compared to expected 2007, shows a
material worsening compared to the 2008 Plan.  Expected EBITDAR
is about three percentage points of revenues.

From the financial point of view, taking into account the
mentioned new and preexisting issues, sustaining the cash-to-
hand at adequate operating levels is more and more correlated to
an increase of the capital of the company, currently estimated
in about EUR750 million, to be carried out in the first half of
2008.

The described scenario fully confirms the compelled actions
envisaged in the Plan for survival/transition and the
unfeseability of any stand-alone positioning of the company.
Positioning of the company that can only be aimed at a strong
industrial merger with other airlines in order to achieve
material synergies.

                     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.


BANCO MACRO: Further Postpones US$100 Million Bond Issuance
-----------------------------------------------------------
Banco Macro said in a filing with the Argentine local stock
exchange that it has decided to postpone its planned
US$100 million bond issue due 2014 once again due to financial
turmoil in global markets.

As reported in the Troubled Company Reporter-Latin America on
Nov. 7, 2007, Banco Macro said it would postpone for three
months its planned US$100 million bond issue due 2014 due to
financial turmoil in global markets.  The bank extended the
period to present expressions of interest until Feb. 1, 2008.
Banco Macro had delayed the subscription period ending to
Nov. 1, 2007, from Oct. 31, 2007.  Banco Macro has the option to
increase the issue up to US$200 million.

Banco Macro said in a statement, "Taking into account the
foreign capital market's current situation, the bank has decided
to extend the period to present expressions of interest until
May 2."

Headquartered in Buenos Aires, Argentina, Banco Macro --
http://www.macro.com.ar/-- had consolidated assets of
ARS11.6 billion (US$3.7 billion) and consolidated deposits of
ARS6.0 billion (US$2 million) as of June 2007.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Dec. 26, 2007, Fitch Ratings affirmed Banco Macro's ratings as:

    -- Foreign and local currency long-term Issuer Default
       Ratings (IDRs) 'B+';
    -- Foreign and local currency short-term IDRs 'B';
    -- Long-term National Rating at 'AA'(arg);
    -- Short-term National Rating at 'A1+(arg)';
    -- Individual at 'D';
    -- Support '5';
    -- Support Floor 'NF'.

The rating outlook is stable.


FIDEICOMISO FINANCIERO: Moody's Rates Debt Securities at B2
-----------------------------------------------------------
Moody's Latin America has assigned a rating of A1.ar (Argentine
National Scale) and of B2 (Global Scale, Local Currency) to the
debt securities of Fideicomiso Financiero Novagro I issued by
Rosario Fiduciaria -- acting solely in its capacity as Issuer
and Trustee.  Moody's also assigned a rating of B3.ar (Argentine
National Scale) and of Caa2 (Global Scale, Local Currency) to
the subordinated Certificates.

The rated securities are backed by a pool of trade receivables
originated by Novagro, a company dedicated to the sale of
agricultural supplies.  The trade receivables are guaranteed by
Aval Rural S.G.R., which is a financial guarantor in Argentina.
Aval Rural has a rating of A1.ar (Argentine National Scale) and
of B2 (Global Scale, Local Currency).

The rating assigned to this transaction is primarily based on
the rating of Aval Rural.  Therefore, any future change in the
rating of the guarantor may lead to a change in the rating
assigned to this transaction.

                           Structure

Rosario Fiduciaria (Issuer and Trustee) issued one class of debt
securities denominated in US dollars.  The rated securities will
bear a 9% annual interest rate.

The rated securities will be repaid from cash flow arising from
the assets of the Trust, comprised of a pool of trade
receivables denominated in US dollars, guaranteed by Aval Rural
S.G.R.; and by sales agreements of grain signed between Novagro
and the exporter (Nidera S.A.).  The trade receivables will be
purchased at a 12.5% discount rate in order to pay trust and
expenses and interest rate on the rated securities.

Although the rated securities are denominated in US dollars,
they could be paid in Argentine pesos at the exchange rate
published by Banco de la Nacion Argentina as of the day prior to
the date that the funds are initially deposited into the Trust
account.  As a result, the dollar is used as a currency of
reference and not as a mean of payment.  For that reason, the
transaction is considered to be denominated in local currency.

If, for any reason, the funds on deposit in the trust account
are not sufficient to make payments to investors, the Trustee is
obligated to request Aval Rural to make payments under the trade
receivables.

Rating Action:

  -- US$2,788,131 in Fixed Rate Debt Securities of "Fideicomiso
     Financiero Novagro I", rated A1.ar (Argentine National
     Scale) and B2 (Global Scale, Local Currency).

  -- US$28,163 in Certificates of "Fideicomiso Financiero
     Novagro I", rated B3.ar (Argentine National Scale) and Caa2
    (Global Scale, Local Currency).


FORD MOTOR: Nears Deal w/ Tata on Jaguar & Land Rover Sale
----------------------------------------------------------
Ford Motor Co. is closing in a deal with Tata Motors Ltd. for
the sale of the American automaker's luxury brands, Jaguar and
Land Rover, The Economic Times reports citing an unnamed source
"who has been briefed on the negotiations."

The Times' source expects an announcement of an agreement as
early as next week to as late as March.  The agreement may also
include a engine-supply deal.  The parties are negotiating an
agreement for Ford to keep supplying engines and other
technology to Jaguar and Land Rover, the news agency cites its
anonymous source as saying.

The news agency expects the sale agreement will be for the sale
of the entire stake in the two luxury brands.  Ford CFO Don
Leclair told the agency that "the company does not plan to keep
a stake in the storied British automakers."

As reported in the Troubled Company Reporter on Jan. 30, 2008,
Ford anticipates a return of its Jaguar brand to profitability
once it is sold, together with the Land Rover brand, to
preferred bidder Tata Motors Ltd., insisting that its management
is at ease at Tata Motor's operational capabilities.

Lewis Booth, executive vice president for Ford of Europe and
Premier Automotive Group (Chairman - Jaguar, Land Rover, Volvo
and Ford of Europe) stated that Ford is committed to focused
detailed talks with Tata Motors on the potential sale of its
Jaguar and Land Rover brands.  He related that while no final
decision has been made, Ford will proceed with further
substantive discussions with Tata Motors over the coming weeks
with a view to securing an agreement that is in the best
interests of all parties concerned.

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

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

                          *     *     *

As reported in the Troubled Company Reporter on Nov. 19, 2007,
Moody's Investors Service affirmed the long-term ratings of Ford
Motor Company (B3 Corporate Family Rating, Ba3 senior secured,
Caa1 senior unsecured, and B3 probability of default), but
changed the rating outlook to Stable from Negative and raised
the company's Speculative Grade Liquidity rating to SGL-1 from
SGL-3.  Moody's also affirmed Ford Motor Credit Company's B1
senior unsecured rating, and changed the outlook to Stable from
Negative.  These rating actions follow Ford's announcement of
the details of the newly ratified four-year labor agreement with
the UAW.


GETTY IMAGES: Reports US$125.9-Mln Net Income in Full Year 2007
---------------------------------------------------------------
Getty Images Inc. has disclosed financial results for the fourth
quarter and full year ended Dec. 31, 2007.  Net income for the
fourth quarter of 2007 was US$28.5 million compared to
US$30.9 million in the fourth quarter of 2006.  Net income for
2007 was US$125.9 million compared to US$130.4 million in 2006.

"We are making tremendous progress toward our goal of becoming a
complete digital media company and we are pleased with our
record revenue for the quarter," said Jonathan Klein, co-founder
and chief executive officer.  "We experienced sequential growth
in every product line compared to the third quarter of 2007 and
continue to see strong progress on our many initiatives to
stabilize our traditional creative stills business while growing
revenue across all other areas of our business."

                     Fourth Quarter Results

Revenue increased 7.1 percent to US$218.1 million from US$203.6
million in the fourth quarter of 2006.  Excluding the effects of
changes in currency exchange rates, revenue grew 1.0 percent.
Revenue growth over the prior year came from increasing licenses
of editorial imagery, significant growth in micro payment
revenue, and increased revenue from digital asset management and
publicity distribution.  This year over year growth was
partially offset by lower revenue in the company's traditional
creative stills business.

As a percentage of revenue, cost of revenue was 27.0 percent,
compared to 26.3 percent in the prior year due to mix, in
particular in the composition of the company's royalty free
business where "other" royalty free revenue is growing faster
and has lower gross margins than the traditional single image
royalty free licensing.

Selling, general and administrative expenses totaled US$86.4
million or 39.6 percent of revenue for the fourth quarter of
2007, compared to US$77.0 million or 37.8 percent of revenue in
the fourth quarter of 2006.  The increase over the prior year is
attributable to recently acquired companies, the impact of
changes in foreign exchange rates, certain non-recurring costs
and investments that the company is making in growth areas,
including editorial imagery, multi-media products, footage,
micro payment, music and consumer.

Income from operations was US$47.8 million or 21.9 percent of
revenue in the fourth quarter of 2007 compared to US$44.1
million or 21.7 percent of revenue in the fourth quarter of
2006.  Excluding US$1.1 million of professional fees associated
with the review of strategic alternatives and restructuring
costs, operating income in the fourth quarter of 2007 was
US$48.9 million or 22.4 percent of revenue.  Excluding US$11.1
million of restructuring costs and professional fees associated
with the review of the company's historical equity compensation
grant practices, operating income in the fourth quarter of 2006
was US$55.2 million or 27.1 percent of revenue.

Total cash and short-term investments were US$364.5 million at
Dec. 31, 2007, compared to US$303.0 million at Sept. 30, 2007.
Net cash provided by operating activities during the fourth
quarter of 2007 was US$78.7 million.

                      2007 Full Year Results

For Full Year 2007, revenue grew 6.3 percent to US$857.6 million
compared to US$806.6 million in the prior year.  As a percentage
of revenue, cost of revenue was 26.6 percent in 2007 compared to
25.6 percent in the prior year.

For 2007, selling, general and administrative expenses were
US$335.9 million or 39.2 percent of revenue compared to US$302.7
million or 37.5 percent of revenue in the prior year.  Excluding
US$6.0 million for certain non-recurring professional fees
associated with the review of the company's historical equity
compensation grant practices, a terminated transaction, and
exploration of strategic alternatives in 2007, SG&A would have
been US$329.9 million or 38.5 percent of revenue.

Income from operations was US$196.3 million or 22.9 percent of
revenue compared to US$198.1 million or 24.6 percent of revenue
in 2006.  Excluding US$11.2 million of restructuring costs and
professional fees, income from operations for 2007 was US$207.5
million or 24.2 percent of revenue.  In 2006, excluding US$27.9
million for items, income from operations was US$226.0 million
or 28.0 percent of revenue in the prior year.

For the full year 2007, the company generated cash from
operating activities of US$249.3 million, compared to US$269.1
million in 2006.  Significant uses of cash during the year
included US$254.7 million for business acquisitions and US$62.9
million for the acquisition of property and equipment.  The
company finished the year with total cash and short term
investments of US$364.5 million.

                         Business Outlook

The following forward-looking statements reflect Getty Images'
expectations as of Jan. 31, 2008.  The company currently does
not intend to update these forward-looking statements until the
next quarterly results announcement.

For the first quarter of 2008, the company expected revenue of
approximately US$220 million and diluted earnings per share of
US$0.45.  For the full year 2008, the company expected revenue
of approximately US$900 million and diluted earnings per share
of US$2.00 to US$2.10. Certain professional fees associated with
the company's exploration of strategic alternatives are included
in the guidance for the first quarter and full year of 2008.

The company expected fully diluted shares just over 60 million
shares for both the first quarter and the full year of 2008.

Headquartered in Seattle, Washington, Getty Images, Inc. --
http://corporate.gettyimages.com/-- creates and distributes
visual content.  The company has corporate offices in Australia,
the United Kingdom and Argentina.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Jan. 28, 2008, Standard & Poor's Ratings Services affirmed its
ratings and outlook on Getty Images Inc., including its 'BB'
corporate credit rating, following the company's announcement
that it is exploring strategic alternatives.


INSTAL TUBE: Proofs of Claim Verification Is Until Tomorrow
-----------------------------------------------------------
Hector Rodolfo Arzu, the court-appointed trustee for Instal Tube
S.A.'s bankruptcy proceeding, verifies creditors' proofs of
claim until tomorrow, Feb. 5, 2008.

Mr. Arzu will present the validated claims in court as
individual reports on March 24, 2008.  The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Instal Tube and its creditors.

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

A general report that contains an audit of Instal Tube's
accounting and banking records will be submitted in court on
May 12, 2008.

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

The debtor can be reached at:

         Instal Tube S.A.
         Brandsen 257/261
         Buenos Aires, Argentina

The trustee can be reached at:

         Hector Rodolfo Arzu
         Junin 55
         Buenos Aires, Argentina


INVERGE SA: Proofs of Claim Verification Ends Tomorrow
------------------------------------------------------
Lydia Elsa Albite, the court-appointed trustee for Inverge
S.A.'s bankruptcy proceeding, verifies creditors' proofs of
claim until Feb. 5, 2008.

Ms. Albite will present the validated claims in court as
individual reports on March 19, 2008.  The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Inverge and its creditors.

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

A general report that contains an audit of Inverge's accounting
and banking records will be submitted in court on May 6, 2008.

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

The debtor can be reached at:

         Inverge S.A.
         Pasaje del Carmen 716
         Buenos Aires, Argentina

The trustee can be reached at:

         Lydia Elsa Albite
         Tacuari 119
         Buenos Aires, Argentina


NORTHWEST AIRLINES: Completes Acquisition of Midwest Air Group
--------------------------------------------------------------
The sale of Midwest Airlines' parent company, Midwest Air Group
Inc., to Midwest Air Partners LLC -- a limited liability company
formed by an affiliate of TPG Capital L.P. and Northwest
Airlines Corp. -- closed on Jan. 31, 2008.

As previously reported, under Midwest Air Group's merger
agreement dated Aug. 16, 2007, with Midwest Air Partners, TPG
Capital and Northwest have delivered equity commitment letters
aggregating:

    Equity Provider                Commitment Amount
    ---------------                -----------------
    TPG Partners V, L.P.              US$238,111,703
    Northwest Airlines, Inc.             213,250,000
                                        ------------
    Total                             US$451,361,703

Northwest is a passive, minority investor in the new ownership
structure.

The closing of the sale is the start of a new era for "The best
care in the air," according to Timothy E. Hoeksema, Midwest's
chairman and chief executive officer.

"We're looking forward to capitalizing on TPG's considerable
experience in the airline industry to help us continue to meet
-- and exceed -- the expectations of the traveling public," said
Mr. Hoeksema.  TPG's 15-year record of investing in the aviation
industry includes Continental Airlines, America West, Ryanair,
Hotwire.com, Gate Gourmet, Sabre and other well-respected
brands.

Mr. Hoeksema said Midwest would benefit from TPG's strength and
expertise as the airline executes its comprehensive strategic
plan.  In 2008, that includes the implementation of seating
choice throughout the airline's mainline fleet; growth and
enhancement of its existing codeshare agreement with Northwest
Airlines; and the introduction of a wide-ranging environmental
initiative that the airline has named "The best care for the
air."

The environmental initiative will build on the TPG companies'
long-standing environmental stewardship and Midwest's track
record of environmentally conscious decision-making.  Over the
last five years, Midwest has reduced its carbon emissions rate
more than 20% through fuel-conservation efforts that include:

    -- Replacement of its DC-9 aircraft fleet with new, fuel-
       efficient Boeing717 aircraft.

    -- Full-scale use of electric ground power and
       preconditioned air units at its Milwaukee hub.

    -- Increased implementation of single-engine taxiing, along
       with improved aircraft flight control surface rigging and
       trim, reduced aircraft weight and minimized aircraft idle
       time.

    -- Increased use of aircraft pushback tractors and electric-
       powered ground support vehicles.

As part of the initiative, Midwest will partner with Boulder,
Colorado-based Sustainable Travel International to offer
travelers environmentally responsible travel planning choices --
including a carbon-offset program.  Additional details will be
announced as the program is rolled out during 2008.

"We are proud to support this venture given Midwest's commitment
to energy efficiency and the TPG companies' long-standing
environmental stewardship," explained Brian T. Mullis, president
of Sustainable Travel International.  "We are looking forward to
helping Midwest and their customers to protect the environment
by enhancing the company's sustainability initiatives."

In terms of the transaction, Mr. Hoeksema pledged that the
airline's commitment to providing outstanding customer service
would also continue under the new ownership structure.  The
acquisition by TPG will preserve Midwest as Milwaukee's hometown
airline and the popular Midwest brand -- known for its
comfortable seating, high level of customer service and
baked-onboard chocolate chip cookies.

"We're excited to partner with TPG," Mr. Hoeksema said.  "The
management of TPG genuinely shares our dedication to quality,
and respects our brand and what we've achieved.  They've
expressed confidence in our business plans, leadership and
employees."

Richard P. Schifter, partner, TPG Capital, added, "We at TPG are
very enthusiastic about the future of Midwest.  We see
significant value in Midwest's rich legacy as a leading provider
of customer-oriented air service -- and that's why we are
investing in Midwest.  Our goal is to work with Midwest's
excellent management team and loyal workforce to look for
opportunities to grow and enhance service for customers in the
greater Milwaukee and Kansas City metropolitan areas and
throughout the airline's network."

Additionally, Midwest will work with Northwest Airlines to
enhance its existing codeshare partnership and to achieve cost
synergies in areas like aviation insurance and fuel purchases,
especially important in light of the expected high cost of fuel
in 2008.

"As we enter this new era for our airline, we'd like to take the
opportunity to express our sincere thanks to our customers, the
communities in which we do business, employees and former
shareholders for their tremendous support," said Mr. Hoeksema.

The airline will celebrate "A Dozen Thanks Day" on Tuesday,
February 12.  Midwest employees will hand out the airline's
popular chocolate chip cookies at Milwaukee's General Mitchell
International Airport and Kansas City International Airport.
Members of the airline's Midwest Miles program who fly that day
will receive 1,200 bonus miles.  And customers who receive
the airline's weekly fare special e-mails will receive a code
that entitles them to a 12% discount on tickets purchased that
day.

Trading of Midwest Air Group stock on the American Stock
Exchange
concluded as of the close of trading on January 31, 2008.
Shareholders will be notified of the process to liquidate their
holdings, which will vary depending on how the stock is held.
Distribution of payouts will occur as soon as practicable.

                   About Northwest Airlines

Northwest Airlines Corp. (NYSE: NWA) -- http://www.nwa.com/--
is the world's fourth largest airline with hubs at Detroit,
Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and about
1,400 daily departures.  Northwest is a member of SkyTeam, an
airline alliance that offers customers one of the world's most
extensive global networks.  Northwest and its travel partners
serve more than 1000 cities in excess of 160 countries on six
continents.  Northwest and its travel partners serve more than
1000 cities in excess of 160 countries on six continents,
including Italy, Spain, Japan, China, Venezuela and Argentina.

The company and 12 affiliates filed for chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930).  Bruce
R. Zirinsky, Esq., and Gregory M. Petrick, Esq., at Cadwalader,
Wickersham & Taft LLP in New York, and Mark C. Ellenberg, Esq.,
at Cadwalader, Wickersham & Taft LLP in Washington represent the
Debtors in their restructuring efforts.  The Official Committee
of Unsecured Creditors has retained Akin Gump Strauss Hauer &
Feld LLP as its bankruptcy counsel in the Debtors' chapter 11
cases.

When the Debtors filed for bankruptcy, they listed US$14.4
billion in total assets and US$17.9 billion in total debts.  On
Jan. 12, 2007 the Debtors filed with the Court their Chapter 11
Plan.  On Feb. 15, 2007, they Debtors filed an Amended Plan &
Disclosure Statement.  The Court approved the adequacy of the
Debtors' Disclosure Statement on March 26, 2007.  On
May 21, 2007, the Court confirmed the Debtors' Plan.  The Plan
took effect May 31, 2007.

                        *     *     *

As reported in the Troubled Company Reporter on June 4, 2007,
Standard & Poor's Ratings Services raised its ratings on
Northwest Airlines Corp. and its Northwest Airlines Inc.
subsidiary, including raising the long-term corporate credit
ratings on both entities to 'B+' from 'D', following their
emergence from Chapter 11 bankruptcy proceedings.  S&P said the
rating outlook is stable.

In addition, S&P assigned a 'BB-' bank loan rating, one notch
above the corporate credit rating, with a '1' recovery rating,
to Northwest Airlines Inc.'s $1.225 billion bankruptcy exit
financing, based on S&P's expectation of a full recovery of
principal in the event of a second Northwest bankruptcy.   That
bank facility converted from a debtor-in-possession credit
facility; S&P withdrew the 'BBB-' rating on the DIP facility.


SCO GROUP: Tanner LC Expresses Going Concern Doubt
--------------------------------------------------
Tanner LC in Salt Lake City, Utah, raised substantial doubt
about the ability of The SCO Group, Inc., to continue as a going
concern after it audited the company's financial statements for
the year ended Oct. 31, 2007.

The auditing firm related that the company is a debtor-in-
possession under Chapter 11 of the U.S. Bankruptcy Code, has
experienced significant and continuing net losses, and is faced
with substantial contingent liabilities as a result of certain
adverse legal rulings.

The company posted a net loss of US$6,826,000 on total revenue
of US$21,656,000 for the year ended Oct. 31, 2007, as compared
with a net loss of US$16,598,000 on total revenue of
US$29,239,000 in the prior year.

A significant portion of the net loss and the cash used in
operating activities was associated with the company protecting
and defending its intellectual property rights.  The company has
an accumulated deficit of US$258,366,000 as of October 31, 2007
and minimal working capital.  As of Oct. 31, 2007, the company
had a total of US$5,554,000 in cash and cash equivalents and
US$3,099,000 in restricted cash, of which US$1,833,000 is
designated to pay for experts, consultants and other expenses in
the SCO Litigation, and the remaining US$1,266,000 of restricted
cash is payable to Novell, Inc., inclusive of US$118,000
included in liabilities subject to compromise for its retained
binary royalty stream.

At Oct. 31, 2007, the company's balance sheet showed
US$14,309,000 in total assets, US$10,555,000 in total
liabilities, and US$3,754,000 stockholders' equity.

A full-text copy of the company's 2007 annual report is
available for free at http://ResearchArchives.com/t/s?2799

                         About SCO Group

Headquartered in Lindon, Utah, The SCO Group Inc. (Nasdaq: SCOX)
fka Caldera International Inc. -- http://www.sco.com/--
provides software technology for distributed, embedded and
network-based systems, offering SCO OpenServer for small to
medium business and UnixWare for enterprise applications and
digital network services.

The company has office locations in Australia, Austria,
Argentina, Brazil, China, Japan, Poland, Russia, the United
Kingdom, among others.

The company and its affiliate, SCO Operations Inc., filed for
Chapter 11 protection on Sept. 14, 2007, (Bankr. D. Del. Lead
Case No. 07-11337).  Epiq Bankruptcy Solutions, LLC, acts as the
Debtors' claims and noticing agent.  The United States Trustee
failed to form an Official Committee of Unsecured Creditors in
these cases due to insufficient response from creditors.  The
Debtors' exclusive period to file a chapter 11 plan expires on
March 12, 2008.  The Debtors' schedules of assets and
liabilities showed total assets of US$9,549,519 and total
liabilities of US$3,018,489.


* ARGENTINA: MIF To Finance Venture Capital Fund for Companies
--------------------------------------------------------------
The Inter-American Development Bank's Multilateral Investment
Fund has approved a US$5 million equity investment and a
US$100,000 technical cooperation grant to PYMAR Fund for a
project to promote the development of a venture capital industry
in Argentina.

The Fund will provide equity financing to 5 to 12 small
enterprises with up to 100 employees and annual sales up to US$5
million, from sectors in which Argentina has clear comparative
advantages such as information technology services, receptive
tourism, biotechnology, medical devices and services,
outsourcing, multimedia contents, specific niche opportunities
in the food industry, and the metal mechanics sectors.

"The fund aims at filling a financing gap for Argentine small
enterprises which have growth potential but face difficulties in
acquiring long-term financing," said MIF team leader Susana
Garcia-Robles.  "It will also contribute to increase these
companies governance and operating standards."

An international company, GEC, a subsidiary of Fundacion Empresa
y Crecimiento/FEC, will manage the fund.  This company will hire
the services of the local management company Holdinvest Gestion
S.A. that will be in charge of the day-to-day operations of the
fund.  The fund will have an eight-year life, with two one-year
possible extensions if agreed by the shareholders.

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

                        *     *     *

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

ULTRAPETROL (BAHAMAS): S&P Revises Stable Outlook to Positive
-------------------------------------------------------------
Standard & Poor's Ratings Services has revised the outlook on
Ultrapetrol (Bahamas) Ltd. to positive from stable.  The 'B'
long-term corporate credit rating was affirmed.

"The outlook revision is mainly based on the improvement in
Ultrapetrol's financial performance while persisting in its
diversification process, which we believe will provide the firm
with more stability in the medium term," said S&P's credit
analyst Diego Ocampo.

The ratings on Ultrapetrol reflect its aggressive financial
profile, characterized by substantial debt leverage, a sizable
investment program that will likely result in further debt
leverage in the medium term, and a concentrated customer base.
These negatives are partly offset by positive short-term
prospects, a favorable market position in the barge business at
the Parana River's Hidrovia, close relationships with the main
oil companies in South America, the long-term profile of its
debt maturity schedule (with the 2014 bond accounting for the
bulk of its debt), and the business diversification process the
company is putting in place.  As of Sept. 30, 2007,
Ultrapetrol's debt totaled US$277 million.

S&P expects Ultrapetrol's profitability to remain strong in the
short to medium term due to positive market fundamentals for all
its business segments.  The company has a very aggressive growth
strategy that has been financed by both equity and debt.

A potential rating upgrade is related to the firm's ability both
to successfully accomplish its current investment program,
without further significant indebtedness, and to reduce its
exposure to the volatile ocean business.  In contrast, the
outlook could return to stable if Ultrapetrol's cash flows
deteriorate significantly or aggressive acquisitions require the
company to increase its already high financial leverage, in
particular to levels of funds from operations-to-debt ratios
lower than 15% and debt-to-EBITDA ratios higher than 4.0.

Bahamas-based shipping company Ultrapetrol (Nasdaq: ULTR) -
http://www.ultrapetrol.net/-- is an industrial transportation
company serving the marine transportation needs of its clients
in the markets on which it focuses.  It serves the shipping
markets for grain, forest products, minerals, crude oil,
petroleum and refined petroleum products, as well as the
offshore oil platform supply market and the leisure passenger
cruise market, with its extensive and diverse fleet of vessels.
These include river barges and pushboats, platform supply
vessels, tankers, oil-bulk-ore vessels and passenger ships.



===========
B E L I Z E
===========

ANDREW CORP: Completes Satellite Comm Biz Sale to Resilience
------------------------------------------------------------
Andrew Corporation, a CommScope Inc. subsidiary, has
completed the sale of its Satellite Communications business to
Resilience Capital Partners, a Cleveland, Ohio-based private
equity firm.

The former Andrew Satellite Communications business will be
operated as a newly-formed, independent company called ASC
Signal Corporation.  The new company will continue operations
from its current major facilities in the United States, Canada,
the United Kingdom, Germany and select regional locations around
the globe.  Its headquarters will be in Garner, North Carolina.
In addition, Andrew will own a minority 17.9 percent share of
ASC Signal and provide certain transition support services to
the new company.

"We are excited and optimistic about the future of ASC Signal
under the new Resilience ownership," said Bassem Mansour,
managing partner, Resilience Capital Partners.  "From the onset,
the transition will appear seamless and should minimize any risk
of disruption to customers, suppliers and our employees."

At closing, Andrew received US$8.5 million in cash and a US$2.5
million note from ASC Signal that will mature in 39 months. In
addition, Andrew expected to receive an additional US$2.5
million note upon completion of certain manufacturing asset
transfers to an ASC Signal facility.  The company also may
receive up to an additional US$25 million in cash after three
years, based upon ASC Signal's achievement of certain financial
targets.

ASC Signal Corporation is a leading global manufacturer of
antennas and radio frequency electronics for enterprise and
consumer satellite communication applications.  ASC Signal
designs and builds products that cover C, Ku, K, X, and
the emerging Ka band frequency platforms.  The extensive range
of products include:

   -- type-approved earth station antenna hubs and gateways for
      broadband and broadcast;

   -- complete VSAT outdoor units (antennas, transceiver
      electronics and installation mounts) for consumer
      broadband and enterprise networks providing the "last
      mile" connectivity to customers for virtual private
      networks, internet access and rural telecommunications;

    -- vehicle mounted communications-on-the-pause antenna
       solutions for disaster management and oil/gas
       exploration;

    -- tactical MilSatCom, air traffic control and weather
       radar, high frequency and troposcatter antenna systems
       for government and defense applications;

    -- direct-to-home antennas and electronics for home
       satellite television entertainment systems; and

    -- complete installation, testing, and value-added services.

                    About Resilience Capital

Resilience Capital Partners is a private equity firm, with
offices in Cleveland, Ohio and Detroit, Michigan, focused on
investing in underperforming, turnaround situations and non-core
divisions of larger corporations.  Resilience's investment
strategy is to acquire middle-market companies that have solid
fundamental business prospects, but have suffered from a
cyclical industry downturn, are under-capitalized, or have less
than adequate management resources. Resilience typically
acquires companies with revenues of US$25 million to US$250
million.  Since its inception in 2001, Resilience has acquired
15 companies with combined revenues in excess of US$1 billion.

                      About CommScope

Based in Hickory, North Carolina, CommScope Inc. (NYSE: CTV) --
http://www.commscope.com/-- is a world leader in infrastructure
solutions for communication networks.  Through its SYSTIMAX(R)
Solutions(TM) and Uniprise(R) Solutions brands, CommScope is the
global leader in structured cabling systems for business
enterprise applications.  It is also the world's largest
manufacturer of coaxial cable for Hybrid Fiber Coaxial
applications.  CommScope has facilities in Brazil, Australia,
China and Ireland.

                       About Andrew Corp.

Headquartered in Westchester, Illinois, Andrew Corporation
(NASDAQ: ANDW) -- http://www.andrew.com/-- designs,
manufactures and delivers and essential equipment and solutions
for the global communications infrastructure market.  The
company serves operators and original equipment manufacturers
from facilities in 35 countries including China, India, Italy,
Czech Republic, Argentina, Bahamas, Belize, Barbados, Bermuda
and Brazil.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America
Oct. 23, 2007, Standard & Poor's Ratings Services affirmed its
ratings on Andrew Corp. and removed them from CreditWatch, where
they were placed on June 27, 2007, with negative implications.
S&P also affirmed the 'BB-' corporate credit and 'B'
subordinated debt ratings for the company.



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

FOSTER WHEELER: Selects Three New Directors on Board
----------------------------------------------------
Foster Wheeler Ltd. has elected three new directors, effective
with the Feb. 1 board meeting.

Edward G. Galante, 57, retired from ExxonMobil in 2006 as senior
vice president and member of the Management Committee after a
34-year career at that firm.  His responsibilities included
worldwide Refining and Supply, Fuels and Lubricants Marketing
and Research and Engineering.  His earlier experience at
ExxonMobil included progressively responsible assignments in
engineering, sales, product line coordination and terminal
operations.  He also held positions in Corporate Planning,
Supply, and served as manager of the company's Baton Rouge,
Louisiana, refinery and as managing director of Esso Thailand.
Currently he serves on the board of Praxair, Inc. and of Junior
Achievement Worldwide.  He is a member of the 25-Year Club of
the Petroleum Industry.  He held a B.S. degree in civil
engineering from Northeastern University and serves on the Board
of Overseers for that institution. He also served as executive
in residence at the university's College of Business
Administration.

Jack A. Fusco, 45, is retired chairman and chief executive
officer of Texas Genco LLC, which owned and operated a diverse
portfolio of 69 power generating units before its acquisition by
NRG Energy in 2006.  Mr. Fusco has more than 20 years of
electric utility experience, including service as president,
chief executive officer and director of Orion Power Holdings,
Inc.  Prior to that, he had been vice president of the Fixed
Income Commodity and Currency Trading Division for Goldman Sachs
& Co, where he specialized in wholesale electric commodity
trading and marketing.  He held a B.S. in mechanical engineering
from California State University of Sacamento.

Steven J. Demetriou, 49, is chairman and chief executive officer
of Aleris International, Inc., a global producer of aluminum
rolled products that was formed in 2004 through the merger of
Commonwealth Industries, Inc. and IMCO Recycling Inc.  Prior to
the merger, he had served as president, chief executive
officer and board member at Commonwealth.  Before joining
Commonwealth, he had served as president and chief executive
officer of privately held Noveon, Inc., a specialty chemical
company.  His career spans more than 25 years and includes
management and senior leadership positions at ExxonMobil
Corporation, Cytec Industries, IMC Global.  He serves on the
board of OM Group, Inc and is chairman of the Aluminum
Association's Executive Committee.  He held a B.S. degree in
chemical engineering from Tufts University and is active in
numerous philanthropic organizations in the Cleveland, Ohio,
area.

"These appointments significantly strengthen our board of
directors," said Raymond J. Milchovich, chairman and chief
executive officer of Foster Wheeler Ltd.  "Throughout their long
and distinguished careers, Ed, Jack and Steve have all
demonstrated consistent achievement across a range of markets
and businesses that are very relevant to our business.  We look
forward to the innovative thinking, sound judgment and rich
experience they will provide and the many contributions they
will make to the future success of Foster Wheeler."

                    About Foster Wheeler

Foster Wheeler Ltd. (Nasdaq: FWLT) -- http://www.fwc.com/--
offers a broad range of engineering, procurement, construction,
manufacturing, project development and management, research and
plant operation services.  Foster Wheeler serves the refining,
upstream oil and gas, LNG and gas-to-liquids, petrochemical,
chemicals, power, pharmaceuticals, biotechnology and healthcare
industries.  The corporation is based in Hamilton, Bermuda, and
its operational headquarters are in Clinton, New Jersey.

                        *     *     *

As reported in the Troubled Company Reporter on Dec. 18, 2006,
Standard & Poor's Ratings Services revised its outlook on Foster
Wheeler Ltd. to positive from stable.

At the same time, Standard & Poor's affirmed its 'B+' corporate
credit rating and other ratings on the company.  The company had
about US$217 million of total debt at Sept. 29, 2006.


FOSTER WHEELER: UK Subsidiary Bags Project Management Contract
--------------------------------------------------------------
Foster Wheeler Ltd.'s UK-headquartered subsidiary, Foster
Wheeler Energy Limited, part of its Global Engineering and
Construction Group, has been awarded a project management
consultancy contract by OJSC "Khabarovsk Oil Processing
Refinery," a 100% subsidiary of OJSC "Oil Company Alliance", for
a new hydroprocessing complex at its Khabarovsk refinery in
Russia.

The Foster Wheeler contract value for this project was not
disclosed and will be included in the company's fourth-quarter
2007 bookings.

Foster Wheeler will execute the project from its Glasgow
operation in the UK.  The company will manage the selected
engineering, procurement and construction contractor and will
provide ongoing advice and assistance to Alliance on commercial
matters.

"We are delighted to continue our involvement in this project,"
said Stephen Culshaw, managing director, commercial operations,
Foster Wheeler Energy Limited.  "We have already completed the
front-end engineering design for the entire hydroprocessing
complex, and have undertaken the basic design for the hydrogen
production facility.  This latest award confirms the quality of
our technical and project management expertise and allows us to
build upon our already excellent working relationship with
Alliance."

The new hydroprocessing complex comprises a hydrocracker,
hydrotreater, hydrogen unit, amine regeneration unit, sour water
stripper and sulfur recovery unit.  The hydrogen plant is based
on Foster Wheeler's own proprietary TERRACE-WALLU(TM) steam
methane reforming technology.

The capacity of the complex, which is scheduled for completion
in early 2011, will be as follows: the diesel fuel and kerosene
hydrotreater unit to 1.18 million tons per year, and the
hydrocracker unit to 0.5 million tons per year.

"Alliance has established an excellent relationship with Foster
Wheeler, and we are pleased to continue the cooperation with
this company.  I am confident that Foster Wheeler will deliver
high quality technical and project management services, and the
project will be completed successfully," said D. V. Shekera,
vice president, OJSC "Oil Company Alliance."

                    About Foster Wheeler

Foster Wheeler Ltd. (Nasdaq: FWLT) -- http://www.fwc.com/--
offers a broad range of engineering, procurement, construction,
manufacturing, project development and management, research and
plant operation services.  Foster Wheeler serves the refining,
upstream oil and gas, LNG and gas-to-liquids, petrochemical,
chemicals, power, pharmaceuticals, biotechnology and healthcare
industries.  The corporation is based in Hamilton, Bermuda, and
its operational headquarters are in Clinton, New Jersey.

                        *     *     *

As reported in the Troubled Company Reporter on Dec. 18, 2006,
Standard & Poor's Ratings Services revised its outlook on Foster
Wheeler Ltd. to positive from stable.

At the same time, Standard & Poor's affirmed its 'B+' corporate
credit rating and other ratings on the company.  The company had
about US$217 million of total debt at Sept. 29, 2006.


SCOTTISH RE: S&P Lowers Counterparty Credit Rating to B from B+
---------------------------------------------------------------
Standard & Poor's Ratings Services has lowered its counterparty
credit rating on Scottish Re Group Ltd. to 'B' from 'B+'.  At
the same time, it lowered its counterparty credit and financial
strength ratings on Scottish Re's operating companies to 'BB'
from 'BB+' and also lowered the ratings on all these companies'
dependent unwrapped securitized deals by one notch.  In
addition, S&P placed the ratings on all these companies on
CreditWatch with negative implications.

"The downgrade reflects the impact of the further erosion of
Scottish Re's capitalization because of the declining market
value of its subprime and Alt-A investments and our increased
estimate of expected losses on these assets," said S&P's credit
analyst Robert Hafner.  "The resultant deterioration in the
company's financial condition has severely disrupted Scottish
Re's ability to generate new business and potentially to retain
existing business.  The company reports only 6% of total in-
force is subject to recapture rights."

"The ratings were placed on CreditWatch with negative
implications because of Scottish Re's continuing exposure to
increasing investment losses and meaningful risk of losing some
reserve credits secured through Ballantyne Re plc," added Mr.
Hafner.  "Our increasing estimates of cumulative subprime and
Alt-A expected losses based on the composition of such
investments, by vintage and other characteristics, negatively
affects our view of Scottish Re's capitalization."

The risk of losing reserve credits from the Ballantyne trust
increases as the market value of subprime and Alt-A investments
declines.  If reserve credits are lost it would immediately
affect Scottish Re's capitalization, because the company would
have to post collateral external to the Ballantyne structure to
reestablish the reserve credits.  The company's capacity to post
the required capital if it becomes necessary is increasingly
strained, and present circumstances make it exceedingly
difficult for Scottish Re to source external capital infusions
until the market disruption dissipates and the impact on the
company is known with near certainty.

"In the next few weeks we will refine our view of expected
losses and the impact on the firm's capitalization," Mr. Hafner
explained.  "The ratings will be lowered if there is substantial
risk of losing reserve credits or if our loss estimate were to
increase materially.  In addition, we will assess the risk of
the company incurring loss of reserve credits and possible
solutions.  The ratings will be affirmed if our refined
investment loss estimate is in line with our current
expectations and the risk of losing reserve credits is
ameliorated."

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



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

BANCO BRADESCO: Paying Almost BRL1.2 Bln. for Agora Corretora
-------------------------------------------------------------
Banco Bradesco will pay almost BRL1.2 billion for brokerage
house Agora Corretora de Titulos e Valores Mobiliarios SA,
Brazilian financial daily Valor Economico reports, citing
sources close to the negotiations.

Valor Economic relates that Banco Bradesco must carry out due
diligence on Agora Corretora before completing the deal.

Reuters says that Banco Bradesco is negotiating with the
controlling shareholders of Agora Corretora.  Banco Bradesco
said in a statement that it would inform regulators and the
market if the transaction was completed.

Banco Bradesco Chief Executive Officer Marcio Cypriano told the
press that once the bank acquires Agora Corretora, it would be
the largest brokerage house in the country.  Agora Corretora is
the leading home broker on the Sao Paulo stock exchange Bovespa.

Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. (NYSE:
BBD) -- http://www.bradesco.com.br/-- prides itself on serving
low-and medium-income individuals in Brazil since the 1960s.
Bradesco is Brazil's largest private bank, with more than 3,000
banking branches, and also a leader in insurance and private
pension management.  Bradesco has branches throughout Brazil as
well as one in New York, and Japan.  Bradesco offers Internet
banking, insurance, pension plans, annuities, credit card
services (including football-club affinity cards for the soccer-
mad population), and Internet access for customers.  The bank
also provides personal and commercial loans, along with leasing
services.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Nov. 27, 2006, Standard & Poor's Ratings Services maintained the
'BB+' ratings on both of Banco Bradesco SA's foreign and local
currency counterparty credit rating, however it changed the
ratings outlook to positive from stable on both ratings:

   -- Foreign currency counterparty credit rating

      * to BB+/Positive/B from BB+/Stable/B

   -- Local currency counterparty credit rating

      * to BB+/Positive/B from BB+/Stable/B

   -- Brazil national scale rating

      * to brAA+/Positive/brA-1 from brAA+/Stable/brA-


BANCO PINE: Will Increase Lending by 60% in 2008
------------------------------------------------
Banco Pine Chief Executive Officer Emilio Carazzai said in a
conference call that it will increase lending at least 60% in
2008, from 2007, Business News Americas reports.

BNamericas relates that Banco Pine's lending rose 108% to
BRL4.33 billion in 2007, compared to 2006, with bottom line
increasing 139% to BRL150 million.

According to BNamericas, Banco Pine's net profits, excluding
costs from the March 2007 initial public offering, grew 165% to
BRL166 million in 2007, from 2006.  Banco Pine's return on
equity increased to 29.2% in 2007, from 23.0% in 2006.

Banco Pine's loans to businesses were two-thirds of its loan
portfolio, BNamericas notes.

Increased economic growth brings promising perspectives for
2008.  Higher salaries in Brazil will let Banco Pine expand in
the retail segment, increasing payroll loans over 60% year-on-
year in 2008, BNamericas says, citing Mr. Carazzai.

Mr. Carazzai told BNamericas that Banco Pine will launch a
credit card for pensioners in federal social security system
Instituto Nacional do Seguro Social within 90 days.  Banco Pine
will also start vehicle funding in February after a three-month
pilot program with a target of BRL300 million in car loans this
year.

Banco Pine will issue up to US$300 million in eurobonds this
year, with some US$80 million going to debt payments.  The
issuance could be made in the first six months of 2008.  Banco
Pine will still decided whether the issue will be public or
private and if it will be in Europe or in the US, BNamericas
states, citing Mr. Carazzai.

Headquartered in Sao Paulo, Banco Pine was established in 1997
by the brothers Nelson and Noberto Pinheiro after the sale in
1996 of their participation in another family institution.  A
comprehensive corporate and operational restructuring was
implemented and in the first half of 2005 Noberto Pinheiro
became the bank's majority shareholder.  In April 2007, Banco
Pine went public by placing non-voting preferred shares at the
Bovespa Level 1 on the New Brazilian Stock Market.  These shares
enjoy a tag-along privilege, giving minority shareholders 100%
of the value of the block of controlling shares in the event of
the sale of the institution.

                       *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 26, 2007, Standard & Poor's Ratings Services raised its
long-term counterparty credit rating on Banco Pine S.A. to 'BB-'
from 'B+'.  The rating was removed from CreditWatch Positive
where it was placed June 11, 2007.  S&P said the outlook is
stable.

As reported in the Troubled Company Reporter-Latin America on
May 18, 2007, Fitch Ratings upgraded the National ratings of
Banco Pine S.A. as:

    -- Long-term National rating to 'A-(bra)' from 'BBB(bra)';
    -- Short-term National rating to 'F2(bra)' from 'F3(bra)'.

Fitch also affirms these ratings:

    -- Long-term Foreign Currency Issuer Default Rating 'B+'
    -- Short-term Foreign Currency rating 'B';
    -- Long-term Local Currency Issuer Default Rating 'B+';
    -- Short-term Local Currency rating 'B';
    -- Individual 'D'
    -- Support '5'.


BANCO RURAL: Earns BRL26.9 Million in 2007 After 2006 Losses
------------------------------------------------------------
Banco Rural said in its financial statement for 2007 that it had
a net profit of BRL26.9 million.

Business News Americas relates that Banco Rural had BRL76.3
million losses in 2006.

Banco Rural told BNamericas that it made BRL21.0 million of its
2007 net profits in the first six months of the year.

According to BNamericas, Banco Rural's net interest income
increased 21.9% to BRL522 million in 2007, compared to 2006.

Founded in 1948, Banco Rural is a multiple bank controlled by
five members of the Rabello family -- 84.7% of the common shares
-- with a tradition in lending to small and medium-sized
companies. Headquartered in Minas Gerais, it had 49 service
posts (21 branches) in Brazil at September 2007 and two overseas
subsidiaries.

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
Dec. 18, 2007, Fitch Ratings revised Banco Rural S.A.'s National
Long-term rating Outlook to Positive from Stable.  At the same
time, the agency affirmed the bank's National Long- and Short-
term ratings at 'CCC(bra)' and 'C(bra)', respectively, and its
Support rating at '5'.


CA INC: Earns US$163 Million in Third Quarter Ended Dec. 31
-----------------------------------------------------------
CA Inc. reported US$163 million of net income for the three
months ended Dec. 31, 2007, compared to US$50 million of net
income for the same period in 2006.

"CA has recorded another solid quarter - our fifth in a row,"
said John Swainson, CA's president and chief executive officer.
"Most importantly, we remain on course to finish the year with
revenue and earnings per share exceeding the updated annual
outlook provided at our financial analyst day last December.

"I am very satisfied with our continued performance improvement,
and I am very proud of the people of CA for their efforts and
accomplishments," Mr. Swainson continued.  "Our EITM strategy
enables us to communicate CA's value proposition to customers in
a clear and compelling way, and we have made considerable
progress in our efforts to cross-sell and up-sell a broader
portfolio of CA products to new and existing customers.

"I am confident that CA's stable customer base and rich product
portfolio puts us in a strong position in today's competitive
environment.  Our results are clearly showing the benefits of
the transformation efforts we began three years ago.  We
continue to manage our business prudently: controlling costs,
increasing efficiency and improving margins at the same time as
we focus on delivering innovative products and driving revenue
growth," Mr. Swainson concluded.

                      Third Quarter Results

Total revenue for the third quarter was US$1.100 billion, an
increase of 10 percent, or 4 percent in constant currency,
compared to US$1.002 billion reported in the comparable prior
year period.  For the first three quarters of fiscal year
2008, total revenue was US$3.192 billion, up 9 percent, or 5
percent in constant currency, over the first three quarters of
fiscal year 2007.

Total North American revenue was up 5 percent in the third
quarter while revenue from international operations was up 17
percent, or 4 percent on a constant currency basis, compared to
the same period last year.

Total product and services bookings in the third quarter were
US$1.228 billion, compared to US$1.553 billion reported in the
comparable prior year period, and, as expected, declined 21
percent on a year-over-year basis. During the third quarter of
fiscal year 2008, the company renewed 16 license agreements
greater than US$10 million, totaling US$303 million, compared to
18 such deals, totaling US$700 million, in the prior year
period. The weighted average duration of new direct bookings in
the third quarter was 3.16 years, compared to 3.74 years in the
prior year's third quarter.  When annualized, the year-over-year
decrease from new direct bookings was 9 percent.

For the first three quarters of fiscal year 2008, total product
and services bookings were US$3.069 billion, up 9 percent from
the US$2.805 billion reported in the first three quarters of
fiscal year 2007.  In addition, annualized direct bookings for
the first three quarters of the fiscal year increased 17 percent
over the same period last year.  The company now expects total
product and services bookings for the full 2008 fiscal year to
grow at a percentage in the mid-teens over the prior year.

Total expenses, before interest and income taxes, for the third
quarter were US$851 million, a decrease of 6 percent, compared
to US$907 million in the prior year period.  The third quarter
was positively affected by a decrease in amortization of
capitalized software from the comparable quarter last year. In
the third quarter, GAAP operating income was US$249 million,
representing an operating margin of 23 percent, a 14 percentage
point improvement from the prior year period.

Total expenses, before interest and income taxes, for the first
three quarters were US$2.488 billion, a decrease of 8 percent,
compared to the US$2.712 billion reported in the first three
quarters of fiscal year 2007.  The decline in expenses was
driven primarily by a decrease in amortization of capitalized
software, lower restructuring costs and improved expense
management.

On a non-GAAP basis, which excludes purchased software and
intangibles, amortization, restructuring and other costs, the
company reported third quarter operating expenses of US$800
million, up one percent from the US$791 million reported in the
prior year period.  Excluding the negative impact of currency,
non-GAAP operating expenses were down 3 percent year-over-year.
In the third quarter, non-GAAP operating income was US$300
million, up 42 percent from the prior year period and
representing a non-GAAP operating margin of 27 percent - a 6
percentage point improvement from the third quarter of fiscal
year 2007.

The company recorded GAAP income from continuing operations of
US$163 million for the third quarter compared to US$52 million
in the prior year period.  This improvement is a result of
higher revenue, expense control and the decrease in amortization
of purchased software and restructuring costs.  For the first
three quarters of fiscal year 2008, GAAP income from continuing
operations was US$429 million, up from the US$141 million
reported in the same period in fiscal year 2007.

The company recorded non-GAAP income from continuing operations
of US$192 million for the third quarter compared to US$133
million reported a year earlier.  For the first three quarters
of fiscal year 2008, non-GAAP income from continuing
operations was US$524 million, up 34 percent from the first
three quarters of fiscal year 2007, while non-GAAP earnings per
diluted common share were US$0.97 in the first three quarters of
fiscal year 2008, an increase of 43 percent, over the US$0.68
reported in the same period in fiscal year 2007.

For the third quarter of fiscal year 2008, CA reported cash flow
from operations of US$233 million, compared to US$587 million in
cash flow from operations in the third quarter of fiscal year
2007.  The year-over-year decline was due primarily to last
year's stronger than usual bookings in the third quarter, the
result of a catch-up from a weaker than normal first half of
fiscal year 2007.  Cash flow also was affected by an investment
in working capital in the third quarter, the majority of which
the Company expects to recover in the fourth quarter of 2008.
Additionally, third quarter cash flow was affected by lower than
expected cash taxes due principally to a tax refund. For the
first three quarters of the fiscal year, the Company recorded
US$413 million in cash flow from operations compared to US$547
million reported in the prior year period.

                        Capital Structure

The balance of cash, cash equivalents and marketable securities
at Dec. 31, 2007, was US$2.078 billion.  With US$2.575 billion
in total debt outstanding, the company has a net debt position
of US$497 million.

The company anticipated approximately 514 million shares
outstanding at fiscal year-end and a weighted average diluted
share count of approximately 541 million shares for the fiscal
year.  The company also expected a full-year tax rate on
non-GAAP income of approximately 36 percent.

Headquartered in Islandia, New York, CA Inc. (NYSE:CA) --
http://www.ca.com/-- is an information technology management
software company that unifies and simplifies the management
ofenterprise-wide IT.  Founded in 1976, CA serves customers in
more than 140 countries.  The company has operations in Brazil,
Indonesia, Luxembourg, Philippines and Thailand.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Dec. 19, 2007, Fitch Ratings affirmed these ratings of CA, Inc.:

  -- Issuer Default Rating at 'BB+';
  -- Senior unsecured revolving credit facility at 'BB+';
  -- Senior unsecured debt at 'BB+'.

Additionally, Fitch revised the Rating Outlook on CA Inc. to
Stable from Negative.  Fitch's actions affect approximately
US$2.8 billion of total debt, including the company's US$1.0
billion revolving credit facility.


COMMSCOPE INC: Andrew Closes Satellite Biz Sale to Resilience
-------------------------------------------------------------
CommScope Inc.'s subsidiary, Andrew Corporation, has completed
the sale of its Satellite Communications business to Resilience
Capital Partners, a Cleveland, Ohio-based private equity firm.

The former Andrew Satellite Communications business will be
operated as a newly-formed, independent company called ASC
Signal Corporation.  The new company will continue operations
from its current major facilities in the United States, Canada,
the United Kingdom, Germany and select regional locations around
the globe.  Its headquarters will be in Garner, North Carolina.
In addition, Andrew will own a minority 17.9 percent share of
ASC Signal and provide certain transition support services to
the new company.

"We are excited and optimistic about the future of ASC Signal
under the new Resilience ownership," said Bassem Mansour,
managing partner, Resilience Capital Partners.  "From the onset,
the transition will appear seamless and should minimize any risk
of disruption to customers, suppliers and our employees."

At closing, Andrew received US$8.5 million in cash and a US$2.5
million note from ASC Signal that will mature in 39 months.  In
addition, Andrew expected to receive an additional US$2.5
million note upon completion of certain manufacturing asset
transfers to an ASC Signal facility.  The company also may
receive up to an additional US$25 million in cash after three
years, based upon ASC Signal's achievement of certain financial
targets.

ASC Signal Corporation is a leading global manufacturer of
antennas and radio frequency electronics for enterprise and
consumer satellite communication applications.  ASC Signal
designs and builds products that cover C, Ku, K, X, and
the emerging Ka band frequency platforms.  The extensive range
of products include:

   -- type-approved earth station antenna hubs and gateways for
      broadband and broadcast;

   -- complete VSAT outdoor units (antennas, transceiver
      electronics and installation mounts) for consumer
      broadband and enterprise networks providing the "last
      mile" connectivity to customers for virtual private
      networks, internet access and rural telecommunications;

    -- vehicle mounted communications-on-the-pause antenna
       solutions for disaster management and oil/gas
       exploration;

    -- tactical MilSatCom, air traffic control and weather
       radar, high frequency and troposcatter antenna systems
       for government and defense applications;

    -- direct-to-home antennas and electronics for home
       satellite television entertainment systems; and

    -- complete installation, testing, and value-added services.

                    About Resilience Capital

Resilience Capital Partners is a private equity firm, with
offices in Cleveland, Ohio and Detroit, Michigan, focused on
investing in underperforming, turnaround situations and non-core
divisions of larger corporations.  Resilience's investment
strategy is to acquire middle-market companies that have solid
fundamental business prospects, but have suffered from a
cyclical industry downturn, are under-capitalized, or have less
than adequate management resources. Resilience typically
acquires companies with revenues of US$25 million to US$250
million.  Since its inception in 2001, Resilience has acquired
15 companies with combined revenues in excess of US$1 billion.

                       About Andrew Corp.

Headquartered in Westchester, Illinois, Andrew Corporation
(NASDAQ: ANDW) -- http://www.andrew.com/-- designs,
manufactures and delivers and essential equipment and solutions
for the global communications infrastructure market.  The
company serves operators and original equipment manufacturers
from facilities in 35 countries including China, India, Italy,
Czech Republic, Argentina, Bahamas, Belize, Barbados, Bermuda
and Brazil.

                      About CommScope

Based in Hickory, North Carolina, CommScope Inc. (NYSE: CTV) --
http://www.commscope.com/-- is a world leader in infrastructure
solutions for communication networks.  Through its SYSTIMAX(R)
Solutions(TM) and Uniprise(R) Solutions brands, CommScope is the
global leader in structured cabling systems for business
enterprise applications.  It is also the world's largest
manufacturer of coaxial cable for Hybrid Fiber Coaxial
applications.  CommScope has facilities in Brazil, Australia,
China and Ireland.

                        *     *     *

As reported in the Troubled Company Reporter on Oct. 19, 2007,
Standard & Poor's Ratings Services affirmed its ratings on
CommScope Inc. and Westchester, Illinois-based Andrew Corp. and
removed them from CreditWatch, where they were placed on
June 27, 2007, with negative implications.  S&P also affirmed
the 'BB-' corporate credit and 'B' subordinated debt ratings for
both companies.  The ratings on Andrew will be withdrawn
following its acquisition and debt refinancing.  S&P said the
outlook is stable.


GOL LINHAS: Profit Margin Drops in 2007
---------------------------------------
Gol Linhas Aereas Inteligentes S.A. told Bloomberg News that its
profit margin dropped in 2007, compared to 2006, amid flight
delays at Brazil's airports.

Bloomberg News relates that Gol Linhas' margin was 21% in 2006.

According to the report, Brazil limited flights at Sao Paulo's
Congonhas airport after two airline crashes in 15 months.  The
restrictions resulted to flight delays.

Bloomberg News notes that Gol Linhas cut its operating profit
forecast six times in 2007.

Bulltick LLC institutional equities vice president George Rexing
commented to Bloomberg News, "Brazilian airlines are still
suffering the effects of the restructuring of the flight routes
and schedules by the government.  Gol is probably trying to say
that the adjustments are taking longer than expected, but things
should be right in 2008."

Gol Linhas is changing flight routes to fit with Varig, which it
purchased in 2007, Bloomberg News says, citing Mr. Rexing.  Gol
Linhas expects a profit at its new unit in the third quarter
2008, according to Bloomberg.  Varig will decrease flights to
Frankfurt, London and Rome under a new strategy.

Gol Linhas told Bloomberg News it transported about 23,690
passengers in 2007, which didn't reach the forecasted 24,100
passengers.  Gol Linhas had 17,700 passengers in 2006.  For
2008, it expects to have about 32,000 passengers.

Based in Sao Paulo, Brazil, GOL Intelligent Airlines aka GOL
Linhas Areas Inteligentes S.A. (NYSE: GOL and Bovespa: GOLL4) --
http://www.voegol.com.br-- through its subsidiary, GOL
Transportes Aereos S.A., provides airline services in Brazil,
Argentina, Bolivia, Uruguay, and Paraguay.  The company's
services include passenger, cargo, and charter services.  As of
March 20, 2006, Gol Linhas provided 440 daily flights to 49
destinations and operated a fleet of 45 Boeing 737 aircraft.
The company was founded in 2001.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
July 25, 2007, Fitch Ratings has affirmed the 'BB+' foreign and
local currency issuer default ratings of Gol Linhas Aereas
Inteligentes S.A.  Fitch has also affirmed the outstanding
US$200 million perpetual bonds and US$200 million of senior
notes due 2017 at 'BB+' as well as the company's 'AA-' (bra)
national scale rating.  Fitch said the rating outlook is stable.


HUGHES NETWORK: EMBARQ Joins as Internet Service Reseller
---------------------------------------------------------
Hughes Network Systems LLC has signed EMBARQ(TM) to be a
reseller of HughesNet(R) broadband satellite Internet access.
Now EMBARQ's business customers in rural areas of the United
States will have high-speed Internet access comparable to the
services that are available in urban markets.

"Selling HughesNet high-speed Internet service to the small
business owner is the latest initiative to highlight our
commitment to this market segment," said EMBARQ vice president
of marketing and product management, Susan Sarna.  "This service
will help businesses in rural communities increase productivity
by giving their employees instant access to the Internet and the
ability to download files faster, all while keeping phone and
fax lines open."

"We are very pleased that Embarq will be selling our HughesNet
services to their small business customers," said Hughes Network
senior vice president, Mike Cook.  "In order for businesses to
grow, they need broadband access no matter where they are
located.  HughesNet provides them with the capability to remain
competitive and to take advantage of a massive range of online
resources."

HughesNet service is delivered via a compact satellite modem
connected to a small outdoor antenna at the customer site,
enabling high speed communication from PCs and laptops with
geostationary satellites positioned in space.  The satellites in
turn communicate with the Hughes Network Operations Center,
which manages the Internet access and retrieval of information,
and provides rapid response back to subscribers.

HughNet service is available in a variety of packages.  With
download speeds ranging from 700 Kbps to 2Mbps and a price range
of US$59.99 per month to US$179.99 per month, this service is
designed to fit the needs and budgets of all EMBARQ business
customers.

                         About EMBARQ

Headquartered in Overland Park, Kansas, Embarq Corporation
(NYSE: EQ) -- http://www.embarq.com-- offers a complete suite
of common-sense communications services.  The company has
approximately 18,000 employees and operates in 18 states.
EMBARQ is included in the S&P 500.

                About Hughes Network Systems

Headquartered in Germantown, Maryland, Hughes Network Systems
LLC (NASDAQ:HUGH) -- http://www.hughes.com/-- a wholly owned
subsidiary of Hughes Communications Inc., provides broadband
satellite networks and services for large enterprises,
governments, small businesses, and consumers.  Hughes offers
complete turnkey solutions, including program management,
installation, training, maintenance and support-for professional
and rapid deployment anywhere, worldwide.  The company owns and
operates a global base of HughesNet shared hub services
throughout the United States, Brazil, China, Europe, and India.
In Europe, Hughes maintains operations facilities and/or sales
offices in Germany, U.K., Italy, Czech Republic, and Russia.

                        *     *     *

Moody's Investors Service assigned a B1 rating to Hughes Network
Systems LLC's proposed US$115 million senior unsecured term
loan, due 2014.

In addition, the ratings agency affirmed the B1 corporate family
rating, the B1 rating on the existing US$450 million senior
notes due 2014 and the Ba1 rating on the US$50 million senior
secured revolving credit facility.  The proceeds of the new term
loan will be used primarily to fund capital expenditures and for
general corporate purposes.


JAPAN AIRLINES: To Slash Discount Fares Up to 80%
-------------------------------------------------
Japan Airlines International Company Ltd. will cut discount
fares up to 80% for tickets sold directly to passengers starting
April, sources disclosed to The Asahi Shimbun.

The Asahi Shimbun's sources revealed that JAL's move, designed
to bolster occupancy rates during the off-season, could lead to
off-peak round-trip fares from Narita Airport to Vancouver for
as low as JPY50,000.

Under JAL's plan, the fare from Narita Airport, Chubu Airport or
Kansai International Airport to Vancouver would be JPY50,000
round trip, depending on the week, relates the article.

The report adds that the step will take advantage of the
transport ministry's decision to abolish in April the floor
price for the discount International Air Transport Association
PEX tickets a carrier can sell directly to passengers.

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

                         *     *     *

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

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

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


PARANA BANCO: Seeks Susep's Okay for New Local Reinsurance Firm
---------------------------------------------------------------
Parana Banco said in a statement that it has sought for the
Brazilian insurance regulator Susep's authorization to create a
local reinsurance firm through insurance unit J Malucelli.

Business News Americas relates that the new company will be
called J Malucelli Resseguradora.  It will be Brazil's first
private sector reinsurer.  It would start operating with BRL70
million in capital, which is 16% more than the minimum set by
Susep.

According to BNamericas, J Malucelli Resseguradora would at
first act as a captive reinsurer for J Malucelli Seguradora, the
leader in the surety bond market in Brazil with a 50% market
share as of November 2007.

Moody's analyst Adolfo Nobrega commented to BNamericas, "It
makes sense, especially considering they're going to focus on
surety bonds, an area where they have much more experience than
[federal reinsurer] IRB-Brasil Re.  They already have contact
with international reinsurers and that will make things easier.
They'll have to pass along some of the reinsurance premiums
because they won't have the capacity to hold on to them all.
Now they'll have more bargaining power with international
reinsurers and more control over prices."

BNamericas notes that J Malucelli secured authorization from
Susep in June 2007 to purchase reinsurance outside Brazil for a
BRL74-million performance bond from the Maua hydroelectric
project in Parana.

The report says that the Brazilian finance ministry ratified in
January 2008 new rules for the reinsurance sector that
deregulate the reinsurance market and end IRB's 68-year
monopoly.  The new rules will be implemented in April 2008.  IRB
will be given 180 days to adapt to the changes.

Parana Banco said in the statement that it appointed Luiz
Alberto Pestana as head of the reinsurance unit.

Mr. Pestana had worked for UBF Garantia & Seguros, which
includes Swiss Re and US surety and title insurance firm Radian
as shareholders, BNamericas relates.

The reinsurance unit would eventually expand to other Latin
American countries, BNamericas notes.

Mr. Nobrega told BNamericas, "They'll have to grow in Brazil
first.  In the short term, I think it'll be difficult for them
to work in other markets in the region.  They're going to face
some heavyweight competition, including Swiss Re."

The surety bond segment in Brazil would increase over the next
two years, giving J Malucelli opportunities to grow, BNamericas
says, citing Mr. Nobrega.

Based on estimates of BRL235 million in premiums for last year,
J Malucelli sees surety bond premiums to increase 25.1% to
BRL294 million.  Surety bond premiums will grow 27.2% year-on-
year to BRL374 million in 2009, and BRL1.68 billion in 2016,
BNamericas states.

Parana Banco is a niche bank in the segment of payroll discount
lending, primarily to public-sector employees.  The bank's
adjusted total assets of US$375 million as of June 2006
represented less than 1% of total assets in the Brazilian
banking industry.  The bank is a relevant part of a broader
conglomerate (J. Malucelli), with operations in different
sectors and concentrated in the South of Brazil.  Standard &
Poor's does not assign ratings to any company in the J.
Malucelli group, and the ratings assigned to the bank do not
incorporate potential support from shareholders.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 26, 2007, Standard & Poor's Ratings Services raised its
long-term counterparty credit rating and senior unsecured debt
rating on Parana Banco S.A. to 'B+' from 'B'.  The ratings were
removed from CreditWatch Positive where they were placed
June 11, 2007.  At the same time, S&P affirmed the 'B' short-
term counterparty credit rating on the bank.  S&P said the
outlook is stable.


STRATOS GLOBAL: Improved Credit Prompts Moody's Outlook Change
--------------------------------------------------------------
Moody's Investors Service has revised the outlook for Stratos
Global Corporation to stable from negative and upgraded the SGL
rating to SGL-3 from SGL-4.  The outlook change and SGL upgrade
reflect better than anticipated performance, which has improved
the company's credit profile and mitigated concern over
compliance with financial reporting covenants.

Moody's also affirmed the B1 corporate family rating and all
other ratings.

  -- Speculative Grade Liquidity Rating, Upgraded to SGL-3 from
     SGL-4

  -- Outlook, Changed To Stable From Negative

  -- Affirmed B1 Corporate Family Rating

  -- Affirmed B1 Probability of Default Rating

  -- Affirmed Ba2 Senior Secured Bank Rating, LGD 2, 23%

  -- Affirmed B3 Unsecured Bonds Rating, LGD 5, 77%

The ratings reflect revenue concentration, some revenue
volatility related to the "on-demand" nature of most products,
price pressure, expectations for flat to declining EBITDA and
high leverage.  Diversification by end-user customers and
geographic markets and expectations for modestly positive free
cash in 2007 and 2008 support the ratings.  Furthermore, Moody's
expects that Inmarsat plc (Ba2 corporate family rating) will
exercise its call option to acquire Stratos Global in 2009,
which reduces the risk associated with renewal of its
distribution agreement and provides clarity on the company's
longer term prospects.

Stratos Global Corporation -- http://www.stratosglobal.com/--
is a provider of a range of advanced mobile and fixed-site
remote telecommunications solutions for users operating beyond
the reach of traditional networks.  The company serves the voice
and high-speed data connectivity requirements of a diverse array
of markets, including government, military, energy, industrial,
maritime, aeronautical, enterprise, media and recreational users
throughout the world.  Stratos operates in two segments:  Mobile
Satellite Services, which provides mobile telecommunications
services, primarily over the Inmarsat plc satellite system, and
Broadband Services, which provides very small aperture terminal
services, sourced on a wholesale basis from a number of the
fixed satellite system operators.

The company has offices the following regions: Europe -- Italy,
Germany, Norway, Spain, United Kingdom Asia-Pacific -- India,
Hong Kong, Singapore, Australia and Japan Latin America --
Brazil.


TEREOS: Weak Credit Metrics Cue Moody's Outlook Change to Neg.
--------------------------------------------------------------
Moody's Investors Service has changed to negative from stable
the outlook on Tereos's Ba2 Corporate Family Rating and
Probability of Default Rating as well as on the Ba3 rating of
Tereos Europe's senior notes.

The rating action was prompted by the company's higher-than-
expected leverage at the end of FYE 2006/07 and Moody's concerns
that the company may not be able to reach the credit metric
targets set at the time of the initial rating assignment
(Retained Cash Flow to Net Debt in the mid-teens and Debt to
EBITDA around 3.5 times over the intermediate term).

Moody's further notes that while Tereos's operating performance
was roughly in line with expectations, higher-than-expected
leverage was predominantly driven by acquisitions and
investments, particularly the Andrade transaction in Brazil for
around EUR150 million and the EUR300 million acquisition of
TALFIIE, which was completed in October 2007.  Moody's
recognises, however, that even though these transactions weigh
on the company's leverage, they are investments in future
growth.

More positively, the Ba2 CFR continues to reflect (1) Tereos's
leadership positions in Europe; (2) its presence in the high-
yield beet production areas of France and the Czech Republic;
(3) its strong brands; (4) the geographic diversification
provided by its operations in Brazil, Mozambique and Reunion;
and (5) the additional diversification provided by the cane
sugar, the alcohol and ethanol segments.  Moreover, Moody's
believes that there is some room for profit improvements in
2007/2008 in view of the potential positive impacts of the
amendments to the European sugar market reform.

Moody's notes that, while the company was compliant with its
financial covenants at the end of September 2007, the company
only had marginal leeway under its leverage covenant of four
times.  Negative pressure could develop on the rating if Tereos
was in breach of its financial covenants or if credit metrics
continued to be weak with RCF/Net Debt falling to below 10% and
leverage significantly above 4.0 times.  A stabilisation of the
outlook could be considered if the company is able to deliver
improved credit metrics with RCF/Net debt in the mid teens and
leverage of around 3.5 times on a sustainable basis.

                         About Tereos

Headquartered in Lille, France, Tereos was created in 2004 as a
result of the merger of Beghin Say and a beet sugar cooperative,
Union SDA.  In January 2006, the company merged with another
French cooperative, Sucreries & Distilleries des Hauts de France
(SDHF), creating the second-largest sugar producer in Europe.
The company is an agro-industrial cooperative group that
combines a total of 14,000 growers, or almost half of France's
sugar beet producers.  Tereos processes its growers' crops --
mainly sugar beets but also sugar cane and cereals -- into
consumer and industrial sugars, alcohol and ethanol.

Tereos has a presence in the high-yield beet production areas in
France and the Czech Republic, and produces sugarcane in Brazil,
Mozambique and Reunion.


* BRAZIL: Central Bank Demands More Reserves from Banks
-------------------------------------------------------
The Central Bank has urged Brazilian banks to make deposits from
May 2008 at a rate from 5 percent until reaching 25 percent in
January 2009 on funds that the banks received from leasing
companies, published reports say.

Bloomberg relates that brazilian banks might decline following
the Central Bank's demands for a compulsory deposits of more
than 25% of leasing companies' interbank deposits.

The central bank said in a statement that the deposits will be
held in government bonds, adding that the measure is a bid to
control inflation by tightening credit and provide equal
treatment for leasing companies' deposits and term deposits the
same paper states.

"The continuing rise of such deposits made this source of funds
important in comparison to the bank liabilities subject to
obligatory deposits," Reuters reports, citing the Central Bank.

According to the securities regulator, though suffering from
falling interest rates and rising income, leasing companies had
about 71% of 46.5 billion reais ($26.5 billion) of domestic
bonds sold in Brazil in 2007 through purchase of cars and other
durable goods financing, Bloomberg notes.

Bloomberg data shows that the biggest annual increase since 1995
was December's 2007 bank loans which climbed 27.3% to 932.3
billion from BRL732.6 billion in 2006.

Mauro Cunha, investment director and partner of Maua
Investimentos, commented "At first, the market may see it as
negative news.  The central bank was very sharp because it hits
one of the banks' fastest-growing lending segments."

                        *     *     *

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.


* BRAZIL: Fitch Says EU Beef Ban Has Near-Term Effect
-----------------------------------------------------
Fitch Ratings expects the announcement by the European Union to
suspend purchases of fresh Brazilian beef to have a very near-
term effect on the industry, but believes that over the medium-
to long-term strong industry prospects will remain unchanged.

"The announcement by the EU will likely affect domestic prices
of fresh beef as producers defer sales to other regions,
including the domestic market," says Director of Latin America
Corporates, Revisson Bonfim.  "However, such a reduction in
domestic beef prices should be accompanied by a similar
reduction in cattle prices which will serve as a partial
offsetting effect."  Live cattle and meat quarters account for
as much as 79% of beef producers' cost of goods sold in Brazil.

Brazilian beef exports to the European Union correspond only to
10% of total tons exported.  Additionally, only 17% of the total
fresh beef exported from Brazil goes to this market (24% in
currency terms).  Furthermore, close to 80% of beef production
in Brazil is consumed domestically.  Fitch expects domestic
consumption to increase, supported by the strong domestic
economic environment, which should translate to continued
decrease dependency on European Union markets.

In recent years Brazilian beef producers have been working on
efforts to diversify both product offerings and export sales by
region, showing vast improvement in 2007 relative to 2006.
Fitch expects continued improvements in such diversification
efforts in 2008.

The Euroean Union ban did not come as a surprise for most
industry players. In October 2007, the union gave Brazil an end-
of-the-year deadline to adhere to European requirements, after
dissatisfaction with Brazil's traceability program (SISBOV).  In
December, the European Union required Brazil to issue a list of
farms adhering to its standards.  With skepticism that the 2,682
properties on Brazil's proposed list may not have been
individually inspected, union authorities imposed the ban
starting Feb. 1, 2008.  The European Union is expected to
revisit the case mid-February.

Fitch rates Minerva SA, Brazil's third largest exporter of fresh
beef, with a 'B+' Foreign Currency Issuer Default Rating and
'BBB(br)' National scale rating.  In addition, Fitch rates
Arantes Alimentos Ltda., Brazil's ninth largest fresh beef
exported, 'B' Foreign Currency IDR and 'BBB(br)' National scale
rating.  The Rating Outlook for the corporate ratings is Stable
for both companies.


* BRAZIL: Petroleo Brasileiro Launches Sepe Tiraju in Rio Grande
----------------------------------------------------------------
Brazilian state-run oil firm Petroleo Brasileiro SA said in a
statement that it's 160-megawatt Sepe Tiraju bi-fuel generator
in Rio Grande do Sul has started operating.

Petroleo Brasileiro told Business News Americas that Sepe Tiraju
is its first bi-fuel plant.  Sepe Tiraju operates on natural gas
and fuel oil.  It invested some BRL100 million to convert the
natural gas-fired plant into a bi-fuel unit.  The plant is
operating at 90 megawatts, which is below its capacity.

Sepe Tiraju secured a license from Rio Grande do Sul
environmental regulator Fepam in Jan. 24, 2008, to start
operations, BNamericas states, citing Petroleo Brasileiro.

                 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, and 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.


* BRAZIL: Receives US$22 Million Loan from Global Environment
-------------------------------------------------------------
The World Bank's Board of Executive Directors has approved a
US$22 million grant from the Global Environment Facility to the
Government of Brazil for the National Biodiversity Mainstreaming
and Institutional Consolidation Project, which will help
integrate biodiversity issues and concerns broadly across key
Government policy decision instances.  The project will support
the country's efforts to reduce the rate of biodiversity loss.

Brazil is a biologically megadiverse country.  Approximately 15%
to 20% of the world's 1.5 million species are found within its
borders.  The country faces complex challenges to control
deforestation, fires, pollution, invasive alien species, and
unsustainable production and consumption.  More than 600 animal
species are threatened with extinction in Brazil.

"Avoiding the loss of Brazilian biodiversity will have enormous
local, national and global benefits in terms of environmental
services such as disease and pest control, crop sustainability,
sustainable economic use of biomes by native populations,
biomedical research and a healthy global genetic pool," said
Adriana Moreira, World Bank Biodiversity Specialist and Project
Manager.  "With the loss of habitats in key biodiverse areas
such as the Atlantic Forest, and to an increasing extent in the
Cerrado, the Caatinga, and the Amazon, a large stock of
biodiversity is in danger of disappearing in the future."

The conservation of Brazilian biodiversity will require
significant efforts from both the public and private sectors.
Barriers for mainstreaming biodiversity concerns into policy and
development in Brazil include a lack of information and
priority among key stakeholders, unsustainable development
initiatives, and deficient coordination among public and private
players.  The difficulties are compounded by Brazil's huge
geographical size and ecological differences, and a generally
low public awareness of the issues.

"Brazil has taken an increasingly active role in the world
debate and has taken effective steps towards the sustainable
management of its natural resources.  This project is very much
consistent with this effort," said Alexandre Abrantes, Acting
World Bank Director for Brazil.  "If this ground-breaking
project is successful, it will support the reduction of the
current rate of biodiversity loss, and increase Brazil's
contribution to the 2010 goals and targets of the International
Convention on Biological Diversity."

Responsibility for managing biodiversity in Brazil is extensive,
with numerous ministries, institutes, secretariats, and
departments holding responsibility for environment and
biodiversity issues within the government.  The project will
promote the mainstreaming of biodiversity at national level in
key government and private sector planning strategies and
practices; and consolidate and strengthen institutional capacity
to produce biodiversity information relevant to the
mainstreaming.

To achieve this, the project will have three technical
components:

   (1) mainstreaming biodiversity into selected government and
       economic sectors;

   (2) mainstreaming biodiversity into the private sector; and

   (3) institutional strengthening and generation of
       biodiversity information for policymaking.

The project will be implemented in partnership with the Ministry
of the Environment and the Brazilian Biodiversity Fund, and
numerous government, private and NGO partners, including the
Instituto Chico Mendes for Biodiversity Conservation, the
Ministries of Agriculture, Agrarian Development, Health, Science
and Technology, which will provide an estimated US$75 million in
cofinancing funds.

                       On GEF & World Bank

The Global Environment Facility is an instrument for providing
grant and concessional funding to achieve global environmental
benefits in the six focal areas:

   -- climate change;
   -- biological diversity;
   -- international waters;
   -- persistent organic pollutants;
   -- land degradation; and
   -- ozone layer depletion.

GEF also supports the work of the global agreements to combat
desertification.

The World Bank Group is one of GEF's implementing agencies and
supports countries in preparing GEF co-financed projects and
supervising their implementation.  The Bank plays the primary
role in ensuring the development and management of investment
projects.  The Bank draws upon its investment experience in
eligible countries to promote investment opportunities and to
mobilize private sector, bilateral, multilateral, and other
government and non-government sector resources that are
consistent with GEF objectives and national sustainable
development strategies.

                        *     *     *

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

BERNARD NATIONAL: Sets Final Shareholders Meeting for February 7
----------------------------------------------------------------
Bernard National Senior Funding, Ltd., will hold its final
shareholders meeting on Feb. 7, 2008, at:

             Maples Finance Limited
             Boundary Hall, Cricket Square
             George Town, Grand Cayman
             Cayman Islands

These agendas will be taken during the meeting:

          1) accounting of the winding-up process; and
          2) giving explanation thereof.

Bernard National's shareholder decided on Nov. 1, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

             Hugh Thompson
             Emille Small
             Maples Finance Limited
             P.O. Box 1093, George Town
             Grand Cayman, Cayman Islands


CSFUND-THREE HOLDINGS: Final Shareholders Meeting on February 7
---------------------------------------------------------------
CSFund-Three Holdings will hold its final shareholders meeting
on Feb. 7, 2008, at:

             Maples Finance Limited
             Boundary Hall, Cricket Square
             George Town, Grand Cayman
             Cayman Islands

These agendas will be taken during the meeting:

          1) accounting of the winding-up process; and
          2) giving explanation thereof.

CSFund-Three Holdings' shareholder decided on Nov. 1, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

             Carlos Farjallah
             Emille Small
             Maples Finance Limited
             P.O. Box 1093, George Town
             Grand Cayman, Cayman Islands


DANIEL REWALT: Holding Final Shareholders Meeting on February 7
---------------------------------------------------------------
Daniel Rewalt Giles Le Sueur Gemini Shipfinance Corporation will
hold its final shareholders meeting on Feb. 7, 2008, at:

             Maples Finance Limited
             Boundary Hall, Cricket Square
             George Town, Grand Cayman
             Cayman Islands

These agendas will be taken during the meeting:

          1) accounting of the winding-up process; and
          2) giving explanation thereof.

Daniel Rewalt's shareholder decided on Nov. 1, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

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


DUKE FUNDING: Sets Final Shareholders Meeting for February 7
------------------------------------------------------------
Duke Funding I, Ltd., will hold its final shareholders meeting
on Feb. 7, 2008, at:

             Maples Finance Limited
             Boundary Hall, Cricket Square
             George Town, Grand Cayman
             Cayman Islands

These agendas will be taken during the meeting:

          1) accounting of the winding-up process; and
          2) giving explanation thereof.

Duke Funding's shareholder decided on Nov. 1, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidators can be reached at:

             Steven O'Connor
             Emille Small
             Maples Finance Limited
             P.O. Box 1093, George Town
             Grand Cayman, Cayman Islands


ENHANCED MORTGAGE-BACKED: Final Shareholders Meeting on Feb. 7
--------------------------------------------------------------
Enhanced Mortgage-Backed Securities Fund V Limited will hold its
final shareholders meeting on Feb. 7, 2008, at:

             Maples Finance Limited
             Boundary Hall, Cricket Square
             George Town, Grand Cayman
             Cayman Islands

These agendas will be taken during the meeting:

          1) accounting of the winding-up process; and
          2) giving explanation thereof.

Enhanced Mortgage-Backed's shareholder decided on Nov. 5, 2007,
to place the company into voluntary liquidation under The
Companies Law (2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

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


GEMINI SHIPHOLDING: Holding Final Shareholders Meeting on Feb. 7
----------------------------------------------------------------
Gemini Shipholding Corporation will hold its final shareholders
meeting on Feb. 7, 2008, at:

             Maples Finance Limited
             Boundary Hall, Cricket Square
             George Town, Grand Cayman
             Cayman Islands

These agendas will be taken during the meeting:

          1) accounting of the winding-up process; and
          2) giving explanation thereof.

Gemini Shipholding's shareholder decided on Nov. 1, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

             Andrew Millar
             Emille Small
             Maples Finance Limited
             P.O. Box 1093, George Town
             Grand Cayman, Cayman Islands


PARMALAT SPA: Announces Dividend for Financial Year 2007
--------------------------------------------------------
Parmalat S.p.A. communicates that, pursuant to Article 2 of the
Instructions for the Regulation of Organized Markets by Borsa
Italiana S.p.A., dividends related to the 2007 financial year
will be payable, as of April 24, 2008, after the approval of the
Shareholders' Meeting, through intermediaries that belong
to the Monte Titoli S.p.A. centralized clearing system.

The company however says that the notice was published with the
sole aim to comply with the instructions by Borsa Italiana
S.p.A. and does not imply any distribution of dividends for the
2007 financial year or for the future ones.

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.


QGPC FINANCE: To Hold Final Shareholders Meeting on February 7
--------------------------------------------------------------
QGPC Finance (Cayman) Limited will hold its final shareholders
meeting on Feb. 7, 2008, at:

             Maples Finance Limited
             Boundary Hall, Cricket Square
             George Town, Grand Cayman
             Cayman Islands

These agendas will be taken during the meeting:

          1) accounting of the winding-up process; and
          2) giving explanation thereof.

QGPC Finance's shareholder decided on Nov. 1, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidators can be reached at:

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


SH CAPITAL: Sets Final Shareholders Meeting for February 7
----------------------------------------------------------
SH Capital Cayman Limited will hold its final shareholders
meeting on Feb. 7, 2008, at:

             Maples Finance Limited
             Boundary Hall, Cricket Square
             George Town, Grand Cayman
             Cayman Islands

These agendas will be taken during the meeting:

          1) accounting of the winding-up process; and
          2) giving explanation thereof.

SH Capital's shareholder decided on Nov. 26, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidators can be reached at:

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


TRUMBULL RATED: Final Shareholders Meeting is on February 7
-----------------------------------------------------------
Trumbull Rated Loan Fund 2003-1, Ltd., will hold its final
shareholders meeting on Feb. 7, 2008, at:

             Maples Finance Limited
             Boundary Hall, Cricket Square
             George Town, Grand Cayman
             Cayman Islands

These agendas will be taken during the meeting:

          1) accounting of the winding-up process; and
          2) giving explanation thereof.

Trumbull Rated's shareholder decided on Nov. 22, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

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


TRUMBULL THC: Holding Final Shareholders Meeting on February 7
--------------------------------------------------------------
Trumbull THC, Ltd., will hold its final shareholders meeting on
Feb. 7, 2008, at:

             Maples Finance Limited
             Boundary Hall, Cricket Square
             George Town, Grand Cayman
             Cayman Islands

These agendas will be taken during the meeting:

          1) accounting of the winding-up process; and
          2) giving explanation thereof.

Trumbull THC's shareholder decided on Nov. 22, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

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



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

NOVA CHEMICALS: Earns US$347 Million in Fiscal Year 2007
--------------------------------------------------------
NOVA Chemicals Corporation reported net income of US$126 million
for the fourth quarter of 2007, compared to US$97 million for
the third quarter of 2007 and a net loss of US$781 million
for the fourth quarter of 2006, which included a US$772 million
after-tax non-cash restructuring charge related to the write-
down of assets in the INEOS NOVA Joint Venture.

For the full year of 2007, the company earned US$347 million
compared to a net loss of US$703 million for 2006.

Cash from operations for the quarter totaled US$205 million
which enabled the company to reduce net debt by US$105 million.

"NOVA Chemicals just finished the best quarter and the best year
in our history," said Jeff Lipton, NOVA Chemicals' Chief
Executive Officer.  "Based on our record breaking feedstock
advantages, modernized and energy efficient plants, and unique
new product portfolio, we expect an ongoing step-up of
performance in the high oil price environment we foresee for
many years to come."

The Olefins/Polyolefins business unit reported record adjusted
EBITDA of US$308 million in the fourth quarter, up from US$280
million in the third quarter primarily due to higher
polyethylene sales volumes and a record Alberta Advantage  of 27
cents per pound in the fourth quarter, up from 21 cents per
pound in the third quarter.

                     INEOS NOVA Joint Venture

The expanded INEOS NOVA styrenics joint venture commenced
operations on Oct. 1, 2007.  Within the first two months of
operation, INEOS NOVA announced the closure of the Montr‚al,
Quebec, and Belpre, Ohio, polystyrene facilities with total
annual production capacity of 340 million pounds.  Also during
the fourth quarter, INEOS NOVA obtained the exclusive rights to
styrene production from Sterling Chemicals' Texas City facility
and nominated zero production in December 2007, which prompted
Sterling to exercise its right to permanently shut down and
decommission the styrene plant. The facility represents 11% of
North American capacity.  The polystyrene plant closures and the
impact from the Sterling deal will contribute significantly to
the joint venture's US$80 million annual synergy target.

             Items Impacting Fourth Quarter Results

During the fourth quarter, various items affected NOVA
Chemicals' results which are not typical of normal operations.
They include the following:

    * US$76 million before-tax (US$46 million after-tax)
      restructuring charges almost entirely related to actions
      taken by the INEOS NOVA joint venture to permanently shut
      down the Montreal, Quebec, and Belpre, Ohio, polystyrene
      facilities and the write-off of the Sterling production
      rights agreement due to the nomination of zero production.

    * US$19 million before-tax (US$13 million after-tax) gain
      related to the sale of the Chesapeake, Virginia facility,
      and sale of other land.

    * US$53 million income tax benefit related to a reduction in
      future federal income tax rates in Canada.  The Canadian
      government enacted a 7% reduction in federal tax rates
      effective by the year 2012 to make Canada the lowest tax
      jurisdiction among the G7 countries.

    * US$13 million non-cash tax benefit associated with a
      Belgium tax issue from a prior year that was settled in
      NOVA Chemicals' favor.

Headquartered in Calgary, Alberta, Canada, Nova Chemicals Co.
(NYSE:NCX) (TSX:NCX) -- http://www.novachem.com/-- is a leading
producer of ethylene, polyethylene, styrene, polystyrene, and
expanded polystyrene.  Nova Chemicals' manufacturing sites are
strategically situated throughout Canada, the US and South
America.  Its South American operations are located in Chile.

                       *     *     *

As reported in the Troubled Company Reporter-Latin America on
Sept. 25, 2007, Moody's Investors Service has confirmed Nova
Chemicals Corporation's Ba3 corporate family rating and senior
unsecured debt ratings following regulatory approval for the
expansion of its styrenics joint venture and the belief that low
olefin feedstock costs could allow the company to meaningfully
reduce debt over the next 12 to 18 months.



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

BANCO DE BOGOTA: 2007 Earnings Increase 61.8% to COP291 Billion
---------------------------------------------------------------
Banco de Bogota increased its earnings by 61.8% to
COP291 billion in 2007, from COP180 billion 2006, Business News
Americas reports, citing Colombian financial regulator
Superfinanciera.

BNamericas relates that Banco de Bogota's operating expenses
dropped 19.3% to COP1.38 trillion in 2007, compared to 2006.

According to BNamericas, Banco de Bogota's deposits grew 21.2%
to COP15.4 trillion in 2007, compared to 2006.  Its assets
increased 13.2% to COP22.2 trillion in 2007, from 2006.

Banco de Bogota's equity strengthened 0.7% to COP2.72 trillion
in December 2007, compared to December 2006, BNamericas states.

Headquartered in Santa Fe de Bogota, Colombia, Banco de Bogota
-- http://www.bancodebogota.com-- is a private national bank
involved in all activities associated with a commercial banking
institution as regulated by Colombian law.  On a national level,
it also operates through subsidiaries: Corporacion Financiera
Colombiana S.A., an investment bank; Almacenes Generales de
Deposito "Almaviva S.A.", a products supply logistics company;
Sociedad Fiduciaria Bogota "Fidubogota S.A." and Fiduciaria del
Comercio "Fiducomercio S.A.", trust and portfolio investment
companies; Leasing Bogot  S.A., a leasing company; Valores
Bogot  S.A., a provider of brokerage services; and Fondos de
Pensiones y Cesantias Porvenir, a pensions and suspensions
administrator. The Bank operates 275 offices, five corporate
service centers and a banking attention center.  The company
also has affiliates in Panama, Nassau, Miami, and New York.

                          *     *     *

As reported on June 27, 2007, Moody's Investors Service changed
the outlook to positive from stable on its Ba3 long-term foreign
currency deposit ratings for Bancolombia, S.A and Banco de
Bogota, S.A. following a similar action on Colombia's foreign
currency deposit ceilings.  Additionally, Moody's changed the
outlook to positive from stable on Bancolombia's Ba1 foreign
currency subordinated bonds following a similar action on the
sovereign bond ceiling.  Bancolombia's bond rating remains
constrained and does not pierce the ceiling.  The banks'
financial strength ratings remain unaffected by this action.



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

US AIRWAYS: Moves Pact Assumption Hearing to February 21
--------------------------------------------------------
Reorganized US Airways Inc. and United Air Lines Inc. are
continuing their discussions regarding modifications to, and
assumption of, the Code Share and Regulatory Cooperation
Agreement and the Star Alliance Participation Agreement.

In a Court-approved stipulation, the US Airways Group Inc. and
United agree that:

   (a) the hearing on the Reorganized Debtors' request to
       assume the Agreements is continued to Feb. 21, 2008,
       at 9:30 a.m.;

   (b) the deadline for the Reorganized Debtors to assume or
       reject the Agreements is extended through and including
       the February Hearing Date; and

   (c) the time periods referenced in a letter agreement dated
       Sept. 14, 2005, is extended to the February Hearing
       Date.

Based in Tempe, Arizona, US Airways Group Inc.'s (NYSE: LCC) -
http://www.usairways.com/-- primary business activity is the
ownership of the common stock of US Airways, Inc., Allegheny
Airlines, Inc., Piedmont Airlines, Inc., PSA Airlines, Inc.,
MidAtlantic Airways, Inc., US Airways Leasing and Sales, Inc.,
Material Services Company, Inc., and Airways Assurance Limited,
LLC.

US Airways has operations in Japan, Australia, China, Costa
Rica, Philippines, and Spain, among others.

Under a Chapter 11 plan declared effective on March 31, 2003,
USAir emerged from bankruptcy with the Retirement Systems of
Alabama taking a 40% equity stake in the deleveraged carrier in
exchange for US$240 million infusion of new capital.

US Airways and its subsidiaries filed another chapter 11
petition on Sept. 12, 2004 (Bankr. E.D. Va. Case No. 04-13820).
Brian P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J.
Canning, Esq., at Arnold & Porter LLP, and Lawrence E. Rifken,
Esq., and Douglas M. Foley, Esq., at McGuireWoods LLP, represent
the Debtors in their restructuring efforts.  In the Company's
second bankruptcy filing, it lists US$8,805,972,000 in total
assets and US$8,702,437,000 in total debts.

The Debtors' Chapter 11 plan for its second bankruptcy filing
became effective on Sept. 27, 2005.  The Debtors completed their
merger with America West on the same date. (US Airways
Bankruptcy News, Issue No. 154  Bankruptcy Creditors' Service
Inc., http://bankrupt.com/newsstand/or 215/945-7000)

                          *     *     *

US Airways Group Inc.'s US$1.6 billion secured credit facility
due 2014, currently being syndicated, carries Standard & Poor's
Ratings Services 'B' rating.  That rating was assigned in March
2007.



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

Affiliated Computer: To Provide Ticketing System in Latvian City
----------------------------------------------------------------
Affiliated Computer Services, Inc. will provide a contactless
ticketing system to the city of Riga, Latvia, with the
municipality's wholly owned transit operator, Rigas Satiksme.
No financial details were disclosed for the 13-year contract.

Affiliated Computer will design and implement a smart card-based
ticketing system using contactless cards and tickets for Rigas
Satiksme's fleet of 460 buses, 322 trolleys, and 252 tramway
cars.  Affiliated Computer and Rigas Satiksme will then operate
the system under the city's oversight.

"The citizens of Riga will benefit from the most advanced
ticketing system in Eastern Europe," said Rigas Satiksme
chairperson, Leons Bemhens.  "ACS' technology and business
expertise will enable Riga to implement and operate a world-
class system."

The new contactless system replaces the current paper-based
ticketing system enabling Rigas Satiksme to issue tickets and
cards, and share information throughout Riga's public transport
network.  Passengers will benefit from seamless travel and easy,
convenient access to transportation.

"Our contactless technology is improving transport services
around the world in terms of cost, reliability, security, and
speed of transaction," said ACS Fare Collection managing
director, Eric Jean.  "We're looking forward to working closely
with Rigas Satiksme to provide a vital service in one of the
most dynamic areas of Eastern Europe."

Riga joins other cities on four continents that benefit from
ACS' contactless ticketing systems, including Paris, Lyon and
Toulouse; Warsaw; Zurich; Houston; Montreal; and Melbourne.
Major new contracts signed in 2007 for contactless ticketing
systems included Jerusalem and Mexico City.

             About Affiliated Computer Services

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

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Jan. 30, 2008, Moody's Investors Service has taken these rating
actions with a stable outlook.

Ratings confirmed/assessments revised:

  -- Corporate family rating, Ba2

  -- US$500 million Senior Secured Notes due 2010 and 2015, Ba2,
     LGD 4, 53%

  -- US$1800 million Senior Secured Term Loan facility due 2013,
     Ba2, LGD 3, 43%

  -- US$1000 million Senior Secured Revolving Credit Facility,
     Ba2, LGD 3, 43%

Rating revised:

  -- Probability of default rating to Ba2 from Ba3

Rating assigned:

  -- Speculative grade liquidity rating of SGL-1

Approximately US$3.3 billion of rated debt affected.



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

* ECUADOR: To Open US$5-Billion Refinary Project with Venezuela
---------------------------------------------------------------
Ecuador is planning to launch a 300,000 barrel-a-day
refinery with Venezuela in 2012, Ayesha Daya and Steven Bodzin
at Bloomberg News reports, citing Oil Minister Galo Chiriboga.

Mr. Chiriboga told the reporters, during a meeting of the
Organization of Petroleum Exporting Countries, that when
Ecuador's oil is drained, the US$5 billion project will receive
crude from Venezuela.  He added that technical studies on the
project must be completed by June, the same paper says.

According to Mr. Chiriboga, Venezuelan president Hugo Chavez has
identified the project provided a way to reduce reliance on the
U.S.

Bloomberg relates that Ecuador, due to its refining capacity
deficiency, would import about US$3 billion in fuels in 2008.
In addition, it sends crude oil to Venezuela in return for
shipments of refined products.

                        *     *     *

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
Ecuador.

As reported in the Troubled Company Reporter-Latin America on
Nov. 1, 2007, Fitch Ratings affirmed and removed from Rating
Watch Negative the long-term foreign currency Issuer Default
Rating of Ecuador at 'CCC', the country ceiling at 'B-' and the
short-term IDR at 'C'.  Fitch said the rating outlook is stable.

In addition, these bond ratings were affirmed:

    -- Uncollateralized foreign currency bonds at 'CCC/RR4';
    -- Collateralized foreign currency Par and Discount Brady
       bonds at 'CCC+/RR3'.



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

HERBALIFE LTD: Paying US$0.20 Per Share Dividend on March 24
------------------------------------------------------------
Herbalife Ltd.'s board of directors has approved a quarterly
cash dividend of US$0.20 per share to shareholders of record
effective Feb. 29, 2008, payable on March 14, 2008.

                     About Herbalife Ltd.

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

                        *      *      *

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



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

FLOWSERVE CORP: Discloses Full Year EPS Range of US$5.10-US5.40
---------------------------------------------------------------
Flowserve Corp. has announced a 2008 full year EPS target range
of between $5.10 and $5.40.

In addition, the company also provided additional details about
its pending 2007 results, including backlog, revenue and
operating margin improvement, as well as its market outlook.

As previously announced, bookings for the fourth quarter 2007
were US$1.1 billion and for full year 2007 were US$4.3 billion,
both up 19 percent.  The company's backlog on Dec. 31, 2007 was
approximately US$2.3 billion, which is the highest year end
level in the company's history.  The company expects full year
2007 revenue to be approximately US$3.75 billion, exceeding the
previously announced target range of US$3.6 to US$3.7 billion.
Flowserve also expects 2007 full year operating margin to be at
or near an annual improvement of 300 basis points, the high end
of its previously announced range.

From a market outlook perspective, the company continues to see
a strong level of investment from its customers in the global
oil and gas market, which continues to feed its large project
business.  Based on project activity levels in power, chemical,
water and other general industries, the company's outlook for
increased investment by its customers in these segments also
remains positive.  In all its served industries, the company
continues to invest in market share growth and believes that its
annual record bookings in 2007 reflect success in this effort.

From a geographical perspective, the company continues to see
solid investment by its customers in the United States across
its core markets.  Internationally, where Flowserve receives
approximately two-thirds of its business, the company also sees
strength in its markets, including strong returns from its
investments in China, India, Middle East and Latin America.

Based on this strength in the company's end markets, Flowserve
plans to increase its capital spending in 2008 over 2007 amounts
in order to capitalize on projected future growth through more
aggressive market penetration strategies and expansion of its
global footprint in both low cost manufacturing capacity and
Quick Response Centers.

"We continue to see strong prospects for growth in our key end
markets, and are excited about our outlook for 2008," said Lewis
Kling, Flowserve President and Chief Executive Officer.  "The
expected EPS in 2008 is a result of our planned continued
operational improvement driving both top and bottom line growth,
as well as the anticipated tax planning strategies that are
targeted to attain the lower end of an effective tax rate range
of between 30 to 35 percent."

                      About Flowserve

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

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Aug. 20, 2007, Moody's Investors Service affirmed Flowserve
Corporation's corporate family rating at Ba3 and probability of
default at B1.  Moody's also affirmed the Ba2 rating to the
company's senior secured term loan and assigned a Ba2 rating to
Flowserve's senior secured revolving credit facility.



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

AIR JAMAICA: Orlando-Jamaica Service Will be Once-a-Day
-------------------------------------------------------
Air Jamaica told the Orlando Sentinel that it will increase
service between the Orlando International Airport and Jamaica to
once-a-day, from five times a week.

The Sentinel relates that flights aboard 150-seat Airbus A320
jets will depart Montego Bay, Jamaica, at 10:30 a.m. and land in
the Orlando airport at 1:25 p.m.  Meanwhile, return flights will
leave Orlando at 2:40 p.m. and arrive in Montego Bay at 3:45
p.m.

"Our transition to daily service in Orlando is the result of
direct consumer demand for nonstop flights to Jamaica," Air
Jamaica's sales and marketing senior vice president Paul
Pennicook said in a statement.

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.


DIGICEL: Buying Anti-Fraud Software from Ectel
----------------------------------------------
Digicel has ordered from ECtel a revenue assurance software RAP,
Cellular-New reports, citing ECtel.

Cellular-News relates that RAP is ECtel's automated and
configurable, revenue assurance platform or anti-fraud software
platform.

According to Cellular-News, the order includes the
implementation in several hub operations to cover Jamaican
operations, as well as central management from Digicel's
headquarters in Kingston, Jamaica.

"Digicel offers a wide range of advanced services in a very
competitive and complex environment, covering 24 markets.
Effective revenue assurance in such an environment demands
flexibility, scalability and simplicity.  fter examining all the
various available solutions, we found ECtel's RAP to be the
right choice for our current and evolving needs," Joe Simmonds
Head of Business Risk Digicel told Cellular-News.

Digicel Ltd. is a wireless services provider in the Caribbean
region founded in 2000, and controlled by Denis O'Brien.  The
company started operations in Jamaica in April 2001 and now
offers GSM mobile services in Caribbean countries including
Jamaica, St. Lucia, St. Vincent, Aruba, Grenada, Barbados,
Bermuda, Cayman, and Curacao among others.  Digicel finished
FY2005 with 1.722 million total subscribers -- 97% pre-paid --
estimated market share of 67% and revenues and EBITDA of US$478
million and US$155 million, respectively.

                        *     *     *

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

Digicel Group Ltd.

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

Digicel Ltd.

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

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

Digicel International Finance Ltd.

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

Fitch said the outlook on all ratings is stable.


* JAMAICA: Partners with World Bank for Development
---------------------------------------------------
Pamela Cox, World Bank Vice President for Latin America and the
Caribbean Region, has completed an official visit to Jamaica,
where she reaffirmed the Bank's commitment to assist the
government led by Prime Minister Bruce Golding.

"I am very pleased with the visit of Pamela Cox and her team.
Through discussions with the Prime Minister, the Government of
Jamaica expressed the priority areas in which it would seek
assistance from the World Bank," said Finance Minister Audley
Shaw.

During her two-day visit, Vice-President Cox met with Prime
Minister Golding and Finance Minister Shaw.  She also met with
leaders from the private sector and representatives of civil
society, and interacted with other senior government officials,
the diplomatic community, donors based in Kingston, project
implementing agencies, and the Jamaican media.

"Meeting with the people and listening to them about how Bank-
supported projects are helping to change their lives is
rewarding and help us to continue our mission", said Ms. Cox.
"We look forward to continue supporting Jamaica in its quest to
achieve higher levels of development," she added.

Accompanied by the Finance Minister, the Cox had the opportunity
to visit some of the projects and programs financed by the Bank.
Among the sites visited was the Green Park Primary and Junior
High School in Clarendon, where they were hosted by School
Principal Mr. O'Neil Ankle, Jamaica's 2007 Principal of the
Year.

Green Park School students benefit from the Program of
Advancement Through Health and Education, a Bank-supported
project.  In Clarendon, Ms. Cox witnessed the positive impact
that the Social Safety Net project and its conditional cash
transfers are having on the lives of more than 240,000 people
throughout Jamaica, of which 70 percent are children.

She also spent time interacting with teachers, students and
their parents all of whom benefit from the Reform of Secondary
Education II (ROSE) project.  ROSE is improving the quality and
equity of secondary education and is expanding access to upper
secondary education.  She also visited the HIV/AIDS project
which focuses on prevention, treatment, care and support of
those affected by the disease.

The delegation led by Ms. Cox, also visited the Inner Cities
Basic Services project in Jones Town, one of the poorest areas
of the Greater Kingston Metropolitan Area.  Accompanied by staff
of the Jamaica Social Investment Fund, the project's
implementing agency, she met with local beneficiaries and toured
community centers and recreational facilities built by the
project.  The US$32.8 million Inner Cities Basic Services
project seeks to help improve the social, economic and physical
conditions of inner city communities, through a
community-driven development approach.

Throughout her visit to Jamaica, Ms. Cox was accompanied by
Yvonne Tsikata, Director for the Caribbean, and Evangeline
Javier, Human Development Director for Latin America and the
Caribbean.

The World Bank currently has six projects in Jamaica totaling
US$117.4 million.

                        *     *     *

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
===========

CINRAM INT'L: Weak Financial Performance Cues S&P to Cut Ratings
----------------------------------------------------------------
Standard & Poor's Ratings Services has lowered its corporate
credit and bank loan ratings on prerecorded multimedia
manufacturer Cinram International Inc., a wholly owned indirect
subsidiary of Cinram International Income Fund, to 'B+' from
'BB-'.  The '4' bank loan recovery rating remains unchanged.  At
the same time, S&P removed the ratings from CreditWatch with
negative implications where they were placed Nov. 6, 2007.  The
outlook is stable.

"The downgrade reflects Cinram's weakened financial performance
for the nine months ended Sept. 30, 2007, which included a 25%
drop in reported EBITDA on largely flat revenues compared with
the same period the previous year," said S&P's credit analyst
Lori Harris.  As a result, the company's reported EBITDA margin
declined to 13.1% for the nine months ended Sept. 30, 2007, from
17.1% for the same period the previous year, and 18.6% for the
same period in 2005, because of lower prices and volume.  At the
same time, S&P expects digital distribution to become a larger
source of studio revenues, which will contribute to a decline in
DVD sales volume in the medium term.  Because of these
challenges, management has suspended monthly distributions to
unitholders starting this month to improve the company's
liquidity position.

The ratings on the company reflect the its limited financial
flexibility and vulnerable business risk profile, which is based
on customer and product concentration, seasonality, and the
commodity-like nature of the media replication industry.
Furthermore, the ratings reflect S&P's concerns about long-term
industry fundamentals as the rating agency expects digital
distribution to become a larger source of studio revenues.
Partially offsetting these factors are the company's strong
market position as the world's largest manufacturer of
prerecorded multimedia products, solid credit protection
measures, and management's track record of adapting to changing
technologies.

The stable outlook reflects S&P's expectation that the company
will maintain its strong key market positions and solid credit
measures in the medium term.  Downward pressure on the ratings
could come from debt-financed acquisitions, poor execution in
the Motorola business, or deterioration in the company's
operations stemming from the loss of a significant contract or
the increased consumer acceptance of a competitive product or
service.  In the medium term, S&P sees limited potential for
revising the ratings upward given the challenges associated with
the media replication industry and the company's growth
strategy.

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


HARMAN INT'L: Appoints Robert Lardon as Investor Relations VP
-------------------------------------------------------------
Harman International Industries, Incorporated has named Robert
V. Lardon as its Vice President, Strategy and Investor
Relations, effective immediately.  He will report to the Chief
Financial Officer and serve as the company's Chief Investor
Relations official.

Mr. Lardon is a veteran of more than 20 years in the finance,
consulting, communications, and consumer products industries.
He served most recently as a strategic consultant in the
consumer electronics field after serving as Senior Partner &
Chief Strategy Officer at global communications agency Porter
Novelli, Inc.  Earlier, he was Managing Director of
PricewaterhouseCoopers' Shareholder Value Strategies Practice,
following positions at Accenture Strategic Services and Booz
Allen Hamilton.  Mr. Lardon holds a Bachelors Degree in English
Literature from Middlebury College and a Masters Degree in
Business Policy from Columbia University Graduate School of
Business.

"This appointment reinforces our commitment to strengthening our
strategic bench and communicating the company's strategy with
maximum clarity and transparency," said Dinesh C. Paliwal,
Harman Chief Executive Officer.  "Robert Lardon enjoys a
distinguished record as a strategy consultant and is adept at
managing key stakeholder relationships.  I look forward to
working with him as we better define both the challenges and
opportunities that characterize our company."

Harman Vice President, Treasurer Robert C. Ryan, who currently
handles Investor Relations at the company, will focus full time
on his responsibilities in the areas of treasury, real estate
and insurance.  "Rob Ryan's deep skills in analysis and risk
management have taken on new significance as we shape a stronger
Harman," said Mr. Paliwal.  "Rob's focus on real estate,
insurance and treasury operations will be instrumental in
supporting the evolution of our global footprint and cost
structure."

Headquartered in Washington, D.C., Harman International
Industries Inc. (NYSE: HAR) -- http://www.harman.com/-- makes
audio systems through auto manufacturers, including
DaimlerChrysler, Toyota/Lexus, and General Motors.  Also the
company makes audio equipment, like studio monitors, amplifiers,
microphones, and mixing consoles for recording studios, cinemas,
touring performers, and others.  Harman Int'l has operations in
Japan, Mexico and France.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Oct. 26, 2007, Standard & Poor's Ratings Services revised its
CreditWatch implications for the 'BB-' corporate credit rating
on Harman International Industries Inc. to positive from
developing.


HERCULES OFFSHORE: EarnS US$31.3 Million in Fourth Quarter 2007
---------------------------------------------------------------
Hercules Offshore Inc. has reported net income of
US$31.3 million on revenues of US$262.9 million for the fourth
quarter 2007, compared to net income of US$35.5 million on
revenues of US$114.7 million for the fourth quarter 2006.

Net income was US$136.5 million, or US$2.29 per diluted share,
on revenues of US$766.8 million for the twelve months ended Dec.
31, 2007, compared to net income of US$119.1 million or US$3.70
per diluted share, on revenues of US$344.3 million for the
twelve months ended Dec. 31, 2006.  The results from the twelve
month period ended Dec. 31, 2007 include US$3.1 million in
severance costs and other costs related to our July 2007
acquisition of TODCO, and a loss of US$1.5 million related to
the early retirement of debt, net of a US$0.7 million gain on
interest rate derivatives.  On an after-tax basis, these items
approximated US$3.0 million, or US$0.05 per diluted share.
Excluding the effect of these items, net income for the year
ended Dec. 31, 2007, was US$139.5 million or US$2.34 per diluted
share.  A one-time gain of US$18.6 million, net of tax, related
to an insurance claim settled on the loss of Rig 25 in Hurricane
Katrina, was included in the 2006 results.  Excluding this gain,
net income was US$100.4 million or US$3.12 per diluted share for
the twelve month period ended Dec. 31, 2006.

Hercules Offshore Chief Executive Officer and President, Randy
Stilley stated, "2007 was a transformative year for Hercules
Offshore.  Our company grew dramatically, tripling the size of
our offshore drilling fleet as a result of our acquisition of
TODCO.  We quickly completed the integration of TODCO into our
operations, using the best of both companies to form a leader in
the industry.  The acquisition also enhanced our financial
flexibility and expanded our geographic footprint.  Furthermore,
in line with our strategy of focusing on shallow water offshore
services, we divested of the nine legacy TODCO land rigs late
last year."

"The past year also marked a period of transition for the US
Gulf of Mexico.  It was a year in which many of our customers
retrenched, focusing on strengthening their balance sheets or
digesting recent property acquisitions.  Importantly however,
supply also adjusted downward to reflect decreased demand. Going
forward, based on our customers' indications of higher activity,
and supported by the recent improvem ent in natural gas prices,
we are confident that activity levels will commence a gradual
upturn during 2008.  Additionally, we will remain focused on
managing our operating costs as we did so effectively during
2007, as well as seeking opportunities to further enhance our
international presence." Mr. Stilley added.

                      Offshore Highlights

During the fourth quarter 2007, revenues from Domestic Offshore
increased by 44% to US$70.7 million, from US$49.1 million in the
fourth quarter 2006.  The increase was driven by additional
operating days as a result of the TODCO acquisition, partially
offset by a decline in utilization to 55.6% compared to 99.5%
during the fourth quarter 2006 and a reduction in average daily
revenue per rig of US$26,563 to US$62,796 in the fourth quarter
2007 as a result of softer demand.  Average operating expense
per rig per day declined to US$23,408 in the fourth quarter 2007
from US$25,824 in the prior year period largely due to the warm
stacking of several idle rigs.  Operating income decreased to
US$6.5 million in the fourth quarter 2007 from US$30.4 million
in the fourth quarter of 2006.

International Offshore revenues increased 194% during the fourth
quarter of 2007 to US$53.8 million from US$18.3 million in the
prior year period due to increased operating days stemming from
the acquisition of TODCO.  The average daily revenue per rig
declined by US$16,945 to US$89,458 during the fourth quarter
2007 compared with the prior year period due to a mix shift in
the type of rigs in this segment.  The average operating expense
per day declined to US$32,622 in the fourth quarter 2007 from
US$41,999 in the fourth quarter of 2006. Operating income
increased by US$16.0 million to US$24.6 million in the fourth
quarter 2007 from US$8.6 million in the prior year period.

                       Inland Highlights

During the fourth quarter 2007, the company generated revenues
of US$53.5 million and operating income of US$14.1 million in
the company's inland segment.  Average daily revenue per rig in
this segment was US$47,312 on utilization of 72.3%.  Prior to
the third quarter of 2007, the company did not have inland barge
operations.

                      Liftboat Highlights

Domestic Liftboats generated revenues of US$32.2 million in the
fourth quarter 2007 versus US$38.1 million in the fourth quarter
2006. Operating income decreased to US$10.9 million in the
fourth quarter 2007 from US$17.2 million in the same period of
2006.  The results were impacted by a decline in the utilization
to 65.2% during the fourth quarter 2007 from 74.2% in the same
period in 2006, as well as a decline in the company's average
revenue per liftboat per day to US$11,656 from US$12,398 over
the same periods as the company have largely completed repair
work from the active 2005 hurricane season.  The average
operating expenses per liftboat per day also declined to
US$3,379 in the fourth quarter 2007 from US$3,777 in the fourth
quarter 2006.

The company's International Liftboats segment posted revenues of
US$17.3 million for the three-month period ended Dec. 31, 2007,
a significant increase from US$9.2 million in the fourth quarter
2006.  This increase is largely attributed to an increase in the
company's operating days to 1,280 compared with 818 in the
fourth quarter of 2006 as a result of its acquisition of eight
liftboats and the bareboat charter of an additional five
liftboats in late 2006.  Average revenue per liftboat per day
also increased to US$13,480 from US$11,277 for the same period
of 2006 as the company increased its dayrates due to robust
demand.  Operating income increased to US$5.2 million in the
fourth quarter 2007 from US$2.2 million in the fourth quarter
2006.

                       Other Highlights

Other segment includes the results of the company's wholly owned
subsidiary, Delta Towing, and its former fleet of nine onshore
drilling rigs, both of which were assumed as part of the TODCO
acquisition.  During the fourth quarter 2007, this segment
generated revenues of US$35.6 million and operating income of
US$6.5 million.  As previously announced, the company sold its
fleet of nine land drilling rigs and related assets in late
December 2007 for US$107.0 million.  These assets contributed
US$18.7 million in revenue and approximately US$600,000 in
operating income to the company's fourth quarter results.

                   Balance Sheet Highlights

At Dec. 31, 2007, the Company's balance sheet reflected total
assets of US$3.6 billion, including cash & equivalents and
marketable securities totaling US$251.7 million, total debt of
US$928.6 million and stockholders' equity of US$2.0 billion.

                   About Hercules Offshore

Headquartered in Houston, Texas, USA, Hercules Offshore, Inc.
(Nasdaq: HERO) provides shallow-water drilling and lift boat
services to the oil and natural gas exploration and production
industry in the United States Gulf of Mexico and
internationally.  It operates a fleet of nine jack-up rigs that
are capable of drilling in maximum water depths ranging from 85
to 250 feet and a fleet of 64 lift boats with leg lengths
ranging from 105 to 260 feet.   Its services are organized in
four segments, Domestic Contract Drilling Services,
International Contract Drilling Services, Domestic Marine
Services and International Marine Services.  The company's
Domestic Contract Drilling Services and Domestic Marine Services
are conducted in the United States Gulf of Mexico, its
International Contract Drilling Services are conducted offshore
Qatar and India, and its International Marine Services are
conducted in West Africa.  The company also has operations in
Venezuela, Trinidad and Mexico.

                        *     *     *

On June 2007, Standard and Poor's Ratings Services raised the
corporate credit rating on Hercules Offshore Inc. to 'BB-' from
'B'.  The outlook on the long-term issuer credit rating was
stable.  At the same time, the ratings on Hercules Offshore were
removed from CreditWatch with positive implications, where they
were placed on March 19, 2007.

Standard & Poor's also assigned its 'BB' rating and '2' recovery
rating to Hercules Offshore's proposed US$1.05 billion bank
facilities.


INTERTAPE POLYMER: Ups Supply Chain Efficiency w/ Logility Inc.
---------------------------------------------------------------
Intertape Polymer Group Inc. has implemented Logility Voyager
Solutions(TM) to improve visibility into customer demand,
increase collaboration, help rationalize its vast product
portfolio and create a more efficient supply chain.

"Logility Voyager Solutions has helped us quickly gain
visibility and flexibility in our supply chain," said Intertape
Polymer supply chain vice president, Joe Tocci.  "We are now
able to rollout a forecast that promotes a more accurate
foundation for inventory and replenishment planning and helps us
reach our goal of having a more proactive supply chain that
drives profitability."

Intertape Polymer Group implemented Logility Voyager Solutions
after experiencing rapid growth through acquisitions which
increased supply chain complexity.  As a result of the
implementation, Intertape Polymer Group has significantly
increased demand visibility, created a more proactive supply
chain and refined its inventory and replenishment planning
processes.  Logility has also enabled Intertape Polymer Group to
rationalize its broad product line by providing a comprehensive
overview of demand by SKU, customer and distribution channel.
Additionally, Intertape Polymer Group has leveraged time-phased
inventory policies that better align business seasonality with
customer service goals.

"Intertape Polymer Group has achieved tremendous results with
Logility Voyager Solutions," said  Logility president and Chief
Executive Officer, Mike Edenfield.  "They have experienced an
increase in forecast accuracy, customer fill rates and customer
service levels and we anticipate the benefits to continue as
Logility helps support Intertape Polymer's future supply chain
goals."

                        About Logility

With more than 1,240 customers worldwide, Logility Inc. -- visit
http://www.logility.com-- is a provider of collaborative, best-
of-breed supply chain solutions that help small, medium, large
and Fortune 1000 companies realize substantial bottom-line
results in record time.  Logility Voyager Solutions is a
complete supply chain management solution that features
performance monitoring capabilities in a single Internet-based
framework and provides supply chain visibility; demand,
inventory and replenishment planning; Sales and Operations
Planning; supply and global sourcing optimization; manufacturing
planning and scheduling; transportation planning and management;
and warehouse management.  Logility customers include Brown Shoe
Company, McCain Foods, Pernod Ricard, Sigma Aldrich, and VF
Corporation.  The company is a majority owned subsidiary of
American Software (Nasdaq: AMSWA).

              About Intertape Polymer Group

Based in Montreal, Quebec and Sarasota/Bradenton, Florida,
Intertape Polymer Group Inc. (NYSE,ITP; TSX: ITP.TO) --
http://www.intertapepolymer.com/-- develops and manufactures
specialized polyolefin plastic and paper-based packaging
products and complementary packaging systems for industrial and
retail use.  The company employs approximately 2,100 employees
with operations in 17 locations, including 13 manufacturing
facilities in North America and one in Europe and in Mexico.

                        *     *     *

As repored in the Troubled Company Reporter on Dec. 27, 2007,
Standard & Poor's Ratings Services raised its ratings on
Intertape Polymer Group Inc. including its corporate credit
rating to 'B' from 'B-'.  The outlook is stable.


GRUPO MEXICO: Eyes 7.3% Increase in Unit's Copper Output
--------------------------------------------------------
Grupo Mexico SA, de C.V., told Reuters that copper production at
its Southern Copper mining unit will increase 7.3% to 635,000
tons this year, compared to last year.

Grupo Mexico said it would produce just under 15,000 tons of
molybdenum in 2008, Reuters notes.

Reuters relates that Grupo Mexico's Cananea mine, whose
production dropped due to a five-month protest, is slowly
reopening.

According to Reuters, Grupo Mexico Chief Financial Officer
Daniel Muniz said in a conference call, "Considering the
expected ramping up of operations, Cananea copper production is
estimated at around 136,000 tons in 2008, 38% higher than the
99,000 tons produced in 2007."

Grupo Mexico wants Cananea to return to its full production in
May, Reuters says, citing Mr. Muniz.

Overall copper output dropped 2% to 592,000 tons in 2007,
compared to 2006, Grupo Mexico told Reuters.

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.


MAXCOM TELECOM: Moody's Confirms B3 Ratings w/ Positive Outlook
---------------------------------------------------------------
Moody's Investors Service confirmed Maxcom Telecomunicaciones,
S.A. de C.V.'s corporate family rating at B3.  At the same time,
Moody's confirmed its B3 rating on the company's US$200 million
in Senior Unsecured notes due in 2014.  The outlook for all
ratings is now positive.  This concludes the review for upgrade
initiated in November 2007.

The outlook change was due to better operating results and
credit metrics than originally expected by Moody's as well as
the successful completion of the company's Initial Public
Offering in late 2007, which provides financing for the
company's ongoing negative free cash flow.

The B3 rating reflects Maxcom Telecom's negative free cash flow,
small size, limited operating history and relatively high churn
(1.65% monthly).  The company's ratings are also constrained by
the expected cash drain from higher working capital and
investments in network expansion, both necessary for the
company's rapid growth strategy.  The rating is supported by
Moody's view that the company's leverage, interest coverage and
liquidity are strong for its B3 rating category.

The recently completed IPO, with US$242 million in net proceeds
for Maxcom Telecom, has strengthened the company's financial
health and provided funding for capital expenditures and working
capital for the next 2-3 years.  The company is now better
positioned to pursue its aggressive growth strategy in the large
and under-penetrated low income segment of the Mexican
population.

Historical and projected negative free cash flow continues to be
the single most important factor constraining the company's
ratings.  Negative free cash flow has been fueled by high capex
(expected average of 40% of revenues for the next three years)
and high working capital needs.  Over the next three years,
Moody's expects that growth capex and working capital will
consume most of the company's cash position, but that it should
have no need to raise additional funds during that time.

Maxcom Telecom, which started operations in 1999, is a
competitive local exchange carrier dedicated to providing
telecom services primarily to the low-income segment in Mexico.
This business model is beginning to prove itself as viable, as
evidenced by increasing revenues and margins, especially in the
last couple of years, when management focused on careful capital
expenditure decisions and austere cost management policies.
Positive results include annual revenue growth above 40% in the
last two years as well as rising adjusted EBITDA margins from
28% in 2004 to 32% in the last twelve months ending on Sept. 30,
2007.  Despite the company's limited operating history, in the
last year Moody's has become more comfortable with regard to the
company's capacity to generate and sustain operating cash flow.

However, the competitive environment and a high churn rate
create uncertainties.  The indisputably large unmet demand in
the segments to which the company offers its services is
evidenced by the fact that approximately 65% of new customers
are not taken away from competitors.  Nevertheless, the
competitive environment is harsh in the sense that, besides
competing against incumbent Telmex, CLECs face the impact of the
entrance to the market of cable companies that have started to
offer voice services.  Maxcom Telecom has enhanced its service
offerings both in terms of number of services as well as in
quality of service.  However, Moody's considers the company's
1.65% subscriber churn rate to be high and a limiting factor for
the company's ability to further improve margins to the industry
average as a consequence of continuous investments to win new
subscribers.

In the last twelve months ending on Sept. 30, 2007, the
company's voice lines in service increased 26% and its client
base grew 21%, leading to a 41% revenue growth from the previous
period.  Due to this strong growth, adjusted LTM Total
Debt/EBITDA leverage dropped to 3.8 times as of Sept. 30, 2007,
down from 4.4 times in 2006.  In addition, the company's
liquidity position is strong and it has a comfortable debt
maturity schedule.

The positive ratings outlook reflects Moody's expectation that
Maxcom Telecom will continue to post double-digit annual revenue
growth rates and therefore profit from economies of scale in a
business environment that should be characterized by increasing
fixed line penetration in the low income segment to which the
company offers its services.

Upward pressure on the company's rating would likely be driven
by the company's ability to stabilize its working capital needs
while maintaining subscriber growth above 20% and gradually
improving operating margins.

A downgrade of the rating is unlikely in the near term, but
could result from continued elevated negative free cash flow and
working capital needs in combination with below expected revenue
growth and margin expansion.

Headquartered in Mexico City, Mexico, Maxcom Telecomunicaciones,
SA de CV, is a facilities-based telecommunications provider
using a "smart-build" approach to deliver last-mile connectivity
to micro, small and medium-sized businesses and residential
customers in the Mexican territory.  Maxcom Telecomunicaciones
launched commercial operations in May 1999 and is currently
offering Local, Long Distance and Internet & Data services in
greater metropolitan Mexico City, Puebla and Queretaro.


PAPELES INDUSTRIALES: Fitch Withdraws B+ Issuer Default Ratings
---------------------------------------------------------------
Fitch Ratings has withdrawn the foreign and local currency 'B+'
Issuer Default Ratings of Papeles Industriales de Michoacan,
S.A. de C.V., due to insufficient information and its lack of
public debt.

Papeles Industriales de Michoacan, S.A., headquartered in Mexico
City, is Mexico's largest manufacturer of fine printing and
writing paper and notebooks.  In fiscal 2005, sales and EBITDA
reached about US$434 million and US$81 million, respectively.


SANMINA-SCI CORP: Fitch Affirms B+ Issuer Defualt Rating
--------------------------------------------------------
Fitch has affirmed these ratings for Sanmina-SCI Corporation:

  -- Issuer Default Rating at 'B+';
  -- Senior secured credit facility at 'BB+/RR1'.
  -- Senior unsecured notes at 'BB+/RR1';
  -- Senior subordinated debt at 'B/RR5'.

The Outlook is Negative.  Fitch's action affects approximately
US$1.5 billion in debt securities.

The Negative Outlook reflects continued uncertainty surrounding
Sanmina's ability to satisfactorily exit the Personal Computer
business via a sale or, conversely, potential restructuring
costs associated with exiting this business.  In addition,
revenue for Sanmina's core EMS business continues to decline,
down 7.7% in fiscal First Quarter 2008 (end December 2007)
versus the prior year period due to weakness in communications
equipment and Enterprise PC segments which together represent
approximately 60% of total core EMS revenue.

The affirmation reflects these considerations:

  -- Sanmina has significantly improved its working capital
     efficiency, lowering cash conversion cycle days to 25 from
     a recent high of 45 in fiscal First Quarter 2007 (end
     December 2007);

  -- Sanmina's improved cash conversion cycle days, in
     conjunction with lower working capital requirements due to
     a 5% decline in revenue, positively impacted free cash flow
     in fiscal 2007 (end September 2007) by approximately US$470
     million, enabling the company to reduce long term debt by
     US$200 million to US$1.5 billion as of calendar 2007.
     Fitch estimates Sanmina's leverage at 5.5 times as of Dec
     2007 compared to 4.5 at Fiscal Year Ended 2006.  Fitch
     estimates adjusted leverage at 6.7 as of Dec 2007;

  -- Fitch believes Sanmina's planned exit from the Personal
     Computer business should enable the company to focus on
     more profitable segments of its core EMS business and
     potentially lead to more consistent positive free cash
     flow;

  -- Fitch believes that the long-term opportunity for revenue
     growth in non-traditional markets for Sanmina including
     industrial, defense and medical supplies, should partially
     mitigate potential further revenue declines in the
     Enterprise PC and Communications markets;

  -- Fitch believes that Sanmina should achieve greater
     stabilization in profitability going forward as its
     reorganization actions have reduced excess manufacturing
     capacity and shifted an increased percentage of operations
     to low cost regions making the company more competitive
    with its peers.

Ratings concerns include Fitch's expectation that the EMS market
will remain highly competitive with continued pressure on
profitability across all North American tier one competitors in
addition to concerns over Sanmina-SCI's ability to stabilize its
revenue base following several quarters of negative growth in
its core EMS business.  While recent and on-going restructuring
initiatives have reduced excess capacity and transferred
manufacturing assets to lower cost regions, the above factors
could drive the need for additional restructuring initiatives
beyond the approximately US$70 million in restructuring costs
currently anticipated for the remainder of fiscal 2008.

Changes to the rating could occur under these scenarios:

  -- A resolution to the company's effort to divest its Personal
     Computer business and clarification of the financial
     impact, if any, on the company of exiting this business;

  -- Continued improvement in profitability and use of free cash
     flow to further reduce debt could positively impact the
     ratings.

As of Dec. 31, 2007, liquidity was solid and consisted of US$941
million in cash plus a US$500 million senior secured credit
facility, expiring December 2008, which was fully available to
the company.  In addition, Sanmina utilizes various off-balance
sheet accounts receivable sales facilities, totaling
approximately US$400 million, for additional liquidity purposes.
Fitch expects free cash flow in fiscal 2008 (ending September
2008) to be break-even to slightly positive, positively impacted
by reduced working capital requirements.

Total debt as of Dec. 31, 2007, was US$1.5 billion and consisted
of: i) US$180 million in senior unsecured floating rate notes
due June 2010; ii) US$300 million in senior unsecured floating
rate notes due June 2014; iii) US$400 million in senior
subordinated 6.75% notes due February 2013; and iv) US$600
million in senior subordinated 8.125% notes due March 2016.

The Recovery Ratings and notching reflect Fitch's recovery
expectations under a distressed scenario, as well as Fitch's
expectation that the enterprise value of Sanmina, and hence
recovery rates for its creditors, will be maximized in
liquidation rather than in a going concern enterprise value
scenario.  In estimating Sanmina-SCI's liquidation value under a
distressed scenario, Fitch applied advanced rates of 80%, 20%,
and 10% to the company's current balance of accounts receivable,
inventory, and property, plant and equipment, respectively.
That leads to a distressed enterprise value estimate of
approximately US$1.3 billion, providing the basis for a
waterfall analysis to determine recovery ratings.  The current
'RR1' recovery rating for the company's secured credit facility
and unsecured notes reflects Fitch's belief that 100% recovery
is realistic.  As is standard with Fitch's recovery analysis,
the revolver is fully drawn and cash balances fully depleted to
reflect a stress event.  The current 'RR5' Recovery Rating for
the senior subordinated debt reflects Fitch's estimate that a
recovery of only 10%-30% would be achievable.

                      About Sanmina-SCI

Headquartered in San Jose, California, Sanmina-SCI Corporation
(NasdaqGS: SANM) -- http://www.sanmina-sci.com/-- is an
Electronics Manufacturing Services (EMS) provider focused on
delivering complete end-to-end manufacturing solutions to
technology companies around the world.  Service offerings
include product design and engineering, test solutions,
manufacturing, logistics and post-manufacturing repair/warranty
services.

The company has locations in Brazil, China, Ireland, Finland,
Malaysia, Mexico and Singapore, among others.


TIMKEN CO: Full Year 2007 Net Income Drops to US$220 Million
------------------------------------------------------------
The Timken Company earned US$220 million for the full year ended
Dec. 31, 2007, compared to net income of US$222.5 million in
2006.  For the fourth quarter of 2007, the company recorded
US$48.2 million of net earnings compared to US$35.3 million of
net earnings for the same quarter of 2006.

The company reported sales of US$5.2 billion for 2007, an
increase of 5 percent from a year ago.  Strong sales in
industrial markets and the favorable impact of currency were
partially offset by the impact of the strategic divestment of
the company's automotive steering and European steel tube
manufacturing operations.  The company achieved income from
continuing operations of US$219.4 million, up from US$176.4
million in 2006.

Excluding special items, income from continuing operations
increased 15 percent to US$229.9 million or US$2.40 per diluted
share in 2007, compared to US$200.8 million or US$2.13 per
diluted share in the prior year.  Special items, net of tax,
totaled US$10.5 million of expense in 2007 compared to
US$24.4 million in 2006.  These special items included losses on
divestitures and charges related to restructuring,
rationalization and impairment, which were partially offset by
disbursements received under the Continued Dumping and Subsidy
Offset Act and favorable tax adjustments.

"Our financial results for 2007 reflect the strength of
industrial markets and the progress we made on initiatives to
shift our portfolio to markets where we can create greater
shareholder value," said James W. Griffith, Timken's president
and chief executive officer.  "We expect to see continued strong
demand for our products and are committed to achieving improved
financial performance through a combination of better execution
and portfolio management."

During 2007, the company took actions to drive further growth in
key market sectors while improving operational performance.

   -- Timken made progress in shifting its portfolio toward key
      growth markets, including Asia, aerospace, distribution,
      energy and heavy industries.  Examples include:

      * Significant capacity expansion over the past two years
        in China, India, Romania and the United States to meet
        growing demand for large-bore and aerospace bearings;

      * The acquisition of the assets of The Purdy Corp. for
        US$200 million, expanding the company's range of gearbox
        manufacturing and repair to serve the aerospace
        industry;

      * Establishment of a joint venture in China to manufacture
        ultra-large-bore bearings for the growing Chinese wind
        energy market;

      * Closure of steel tube manufacturing operations in
        Desford, England; and

   -- Advancement of restructuring initiatives within the
      company's bearing operations, including closure of its
      manufacturing facility in Clinton, S.C.

   -- Timken commissioned a new induction heat-treat line
      focused on steel products for the energy and industrial
      sectors and began building a US$60 million expansion for
      special small-bar steel capabilities that will give the
      company one of the broadest ranges of super-clean alloy
      steel bars in North America.

   -- The company realigned operations under two major business
      groups, the Bearings and Power Transmission Group and the
      Steel Group, to improve execution and accelerate
      profitable growth.

   -- The company completed the first major U.S. Implementation
      of Project O.N.E., a program designed to improve
      enterprise-wide business processes and systems.  Over the
      next year, the company will complete the next phase of the
      rollout, covering most of its remaining operations.

                     Fourth-Quarter Results

For the quarter ended Dec. 31, 2007, sales were US$1.3 billion,
an increase of 9 percent from a year ago.  Strong sales in
industrial markets were partially offset by the impact of the
company's strategic divestments.

Income from continuing operations per diluted share was US$0.50
in the fourth quarter of 2007 compared to US$0.17 in the same
period a year ago.  The company's performance benefited from
higher volume and improved pricing, which were partially offset
by higher raw-material, manufacturing and logistics costs.

Special items, net of tax, in the fourth quarter of 2007 totaled
US$0.8 million of expense, compared to US$5.5 million in the
same period a year ago and included losses on divestitures and
charges related to restructuring, rationalization and
impairment, partially offset by disbursements received under
CDSOA.  Excluding these items, income from continuing operations
per diluted share in the fourth quarter of 2007 was US$0.51,
compared to US$0.23 during the same period in 2006.

Total debt was US$723.2 million as of Dec. 31, 2007, or 26.9
percent of capital.  Net debt at Dec. 31, 2007, was US$693.0
million, or 26.1 percent of capital, compared to US$496.8
million, or 25.2 percent, as of Dec. 31, 2006.  The increase in
net debt was due primarily to the Purdy aerospace acquisition in
the fourth quarter of 2007, higher working capital requirements
driven by strong demand and increased capital expenditures in
support of growth initiatives.

In the fourth quarter of 2007 the company implemented a change
to its management structure and now operates under two major
business groups, the Steel Group and the Bearings and Power
Transmission Group, which includes three segments - Mobile
Industries, Process Industries and Aerospace & Defense.
Beginning with the first quarter of 2008, the company will
report its financial results under the new structure and
reclassify its prior-period segmentation accordingly.  Financial
reporting under the previous segmentation (Industrial,
Automotive and Steel) was used throughout the fourth quarter of
2007.

                      About Timken Co.

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

                        *     *     *

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


TRIMAS CORP: Cequent Acquires Parkside Towbars of West Australia
----------------------------------------------------------------
TriMas Corporation subsidiary, Cequent group has acquired
Parkside Towbars, located in Western Australia.  With annual
revenues of approximately US$5 million, Parkside Towbars adds to
Cequent's towing and truck accessory product offering, while
strengthening its position in an attractive international
market.  Parkside Towbars will be integrated with Cequent's
already well-established business in Australia, operating under
the brand of Hayman Reese(R).

"Consistent with our strategy to expand internationally, the
acquisition of Parkside Towbars provides us greater access to
the robust Western Australian segment of the Australian market,"
commented Cequent Group President, Ed Schwartz.  "Parkside's
recognized brand and established channel presence will generate
new opportunities for Cequent products in this market.  This
acquisition will also allow us to expand into complimentary
products, including front-end protection equipment for motor
vehicles."

                    About Parkside Towbars

Located in Perth, Western Australia, Parkside Towbars is a
leading manufacturer and distributor of standard towbars, Tow-
Safe(R) hitches, roobars, nudge bars, front protection bars and
bullbars.  The company also carries a range of related vehicle
accessories such as load equalizing hitches, electric brake
units, transmission coolers, cargo barriers and spotlights.
Established in 1972, Parkside Towbars earned certification as a
Quality Endorsed Company with Quality Assurance Services
(Standards Australia) in 1992.

                        About Cequent

Cequent is a leading designer, manufacturer and marketer of a
broad range of accessories for light trucks, sport utility
vehicles, recreational vehicles, passenger cars and trailers of
all types.  Products include towing and hitch systems, trailer
components and accessories, and electrical, brake, cargo-
carrying and rack systems.  Cequent draws upon a 75-year-old
heritage of superior towing and trailer brands, including:
ROLA(R), Hayman Reese(R), Highland(R), Draw-Tite(R), Reese(R),
Fulton(R), Wesbar(R), Bull Dog(R), Hidden Hitch(R) and
Tekonsha(R).

                        About TriMas

Headquartered in Bloomfield Hills, Michigan, TriMas Corporation
(NYSE:TRS) -- http://www.trimascorp.com/-- is a diversified
growth company of high-end, specialty niche businesses
manufacturing a variety of products for commercial, industrial
and consumer markets worldwide.  TriMas Corporation is organized
into five strategic business groups: Packaging Systems, Energy
Products, Industrial Specialties, RV & Trailer Products, and
Recreational Accessories.  TriMas Corporation has nearly 5,000
employees at 80 different facilities in 10 countries.  The
company has manufacturing facilities in Indiana, Mexico,
England, Germany, Italy, and China.

                        *     *     *

As reported on May 28, 2007, Standard & Poor's Ratings Services
raised its ratings on Bloomfield Hills, Michigan-based TriMas
Corp., including its corporate credit rating, which goes to 'B+'
from 'B'.

At the same time, all ratings were removed from CreditWatch,
where they were placed with positive implications on Aug. 4,
2006, following the company's announcement that it had filed a
registration statement for an IPO.  S&P said the outlook is
stable.


WESCO INT'L: Reports US$61-Mln Net Income in Fourth Quarter 2007
----------------------------------------------------------------
WESCO International Inc. has announced its 2007 fourth quarter
and full-year financial results.

                    Fourth Quarter Results

Consolidated net sales for the fourth quarter of 2007 were
US$1,489 million compared to US$1,376 million in 2006, an
increase of 8%.  Sales, excluding the impact of Communications
Supply acquired in November 2006 and the three acquisitions
completed in 2007, increased 2.8%.  Gross margin for the quarter
was 20.3% compared to 20.9% from a year ago.  The fourth quarter
2006 gross margin was 20.3% excluding the one-time favorable
impact resulting from acquisition related inventory adjustments
in the prior year.  Operating income for the current quarter
totaled US$99 million versus US$93 million in last year's
comparable quarter.  Depreciation and amortization included in
operating income was US$9.6 million for 2007 compared to US$9.4
million in 2006.  The effective tax rate for the fourth quarter
of 2007 was 25.7% compared with 27.1% for the fourth quarter of
2006.  The fourth quarter 2007 effective tax rate included non-
recurring income tax benefits totaling US$5.5 million, primarily
resulting from tax incentives for US export sales, a change in
foreign deferred taxes, and the timing of benefits realized from
Canadian tax initiatives.  Net income for this quarter was US$61
million versus US$58 million in the comparable 2006 quarter.
Diluted earnings per share for the quarter were US$1.34 per
share versus US$1.10 per share in 2006.

Senior Vice President and Chief Financial and Administrative
Officer, Stephen A. Van Oss stated, "Our Company performed quite
well during the quarter maintaining a tight focus on cost
management while simultaneously making progress on our
commitment to add sales capacity throughout the organization.
Core sales growth at 3% was in line with our expectations.  We
are particularly pleased to see our operating profit pull
through return to near target levels.  This was achieved despite
tough comparisons to last year's fourth quarter which included
the favorable impact of one-time items related to last year's
acquisitions and sales growth below levels generally necessary
to achieve targeted operating profit pull through of 50% or
more."

Mr. Van Oss continued, "We repurchased 1.1 million shares of
company stock under the new US$400 million share repurchase
program.  Over the last 10 months, the company has repurchased a
total of 7.5 million shares.  Our balance sheet is solid, with
good earnings and strong free cash flow providing ample
liquidity for continued share repurchases while maintaining
appropriate levels of leverage."

                       Year-end Results

For the year 2007, net sales increased 13% to US$6,003 million
compared with US$5,321 million in 2006.  Gross margin for the
year was 20.4% in both 2007 and 2006.  Operating income totaled
US$394 million compared with US$365 million in 2006, an increase
of 7.9%.  Depreciation and amortization included in operating
income was US$37 million and US$29 million for the years ended
2007 and 2006, respectively.  Net income for 2007, including
approximately US$12 million of favorable one-time items related
to income taxes and the change in accounting for the company's
accounts receivable securitization program, was US$241 million
compared with US$217 million last year.  Diluted earnings per
share in 2007 were US$4.99 versus US$4.14 earnings per share in
2006, an increase of 21%.

Chairperson and Chief Executive Officer, Roy W. Haley commented,
"WESCO produced another year of record operating and financial
results in 2007, despite sales weakness encountered early in the
year.  We are encouraged by the increased activity levels in the
second half of 2007.  The organization has worked very hard over
the past several quarters to increase our sales and marketing
capabilities while also expanding our capacity for growth.  We
believe these ongoing activities are appropriate and will yield
additional profitable growth in 2008."

Mr. Haley continued, "We are very cognizant of the forecasts for
a weaker economic environment for 2008.  Our management is
focused on matters under our operational and administrative
control to drive sales growth in adifficult environment.  We are
pleased with the organization's efforts in 2007, and we look
forward to another year of record results in 2008."

                   About WESCO International

Headquartered in Pittsburgh, Pennsylvania, WESCO International,
Inc., (NYSE: WCC) is a publicly traded Fortune 500 holding
company, whose primary operating entity is WESCO Distribution,
Inc.  WESCO Distribution is a distributor of electrical
construction products and electrical and industrial maintenance,
repair and operating supplies, and is the nation's largest
provider of integrated supply services.  WESCO operates eight
fully automated distribution centers and approximately 370 full-
service branches in North America and selected international
markets including Mexico and Puerto Rico, providing a local
presence for area customers and a global network to serve multi-
location businesses and multi-national corporations.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Dec. 4, 2007, Moody's has affirmed the ratings of Wesco
International, Inc. and changed the outlook to stable from
positive.  Specifically, Moody's affirmed the B1 ratings on both
the guaranteed senior convertible debentures due 2025 and Wesco
Distribution, Inc.'s guaranteed senior subordinated notes due
2017.  Moody's also affirmed the company's Ba3 corporate family
rating.



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


* NICARAGUA: Dairy Producers All Eyes on Venezuela
--------------------------------------------------
The dairy firms of Nicaragua are planning to market their excess
production on Venezuela, which has 30 million consumers, Inside
Costa Rica reports.

Nicaragua should use its great exporting potential of these
products, according to Businessman Alfredo Lacayo, saying that
only 20% of it has been used, the same paper states.

Official statistics show that in 2007, Nicaragua has recorded a
US$100 million worth of dairy product exports, compared to
US$100 million in 1996.

If transportation conditions develop, Mr. Lacayo considered, a
flourishing business in the sector might exist, Inside Costa
Rica says.

                        *     *     *

Moody's Investor Service assigned these ratings to Nicaragua:

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



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

AGILENT TECH: Files Lawsuit to Protect Liquid Chormatography IP
---------------------------------------------------------------
Agilent Technologies Inc. has filed litigation against Advanced
Materials Technology Inc. in the Delaware Court of Chancery to
protect confidential and proprietary information relating to its
high-performance liquid chromatography technology.

The complaint contends that three former Agilent employees, now
with AMT, breached the confidentiality of their employment
agreements, misappropriated Agilent trade secrets and breached
their fiduciary duties with respect to Agilent's HPLC
intellectual property.  The litigation filing alleges that
Agilent trade secrets and confidential information were used by
AMT in developing its Halo HPLC columns.

"Agilent is built on a long-standing foundation of integrity and
high ethical standards by our employees in both their external
and internal interactions," said Mike McMullen, vice president
and general manager of Agilent's Chemical Analysis Solutions
Unit.  "This is an unfortunate, but reasonable and necessary
action to vigorously protect our intellectual property."

Agilent is a leading global supplier of HPLC instruments,
consumables and support.  HPLC is a form of liquid
chromatography used frequently in biochemistry and analytical
chemistry.  Sometimes referred to as high-pressure liquid
chromatography, it is used to separate components of a mixture
by using a variety of chemical interactions between the
substance being analyzed and the chromatography column.

                     About Agilent Tech

Agilent Technologies Inc. (NYSE: A) -- http://www.agilent.com/
-- is the world's premier measurement company and a technology
leader in communications, electronics, life sciences and
chemical analysis.  The company's 19,000 employees serve
customers in more than 110 countries.

The company has operations in India, Argentina, Puerto Rico,
Bolivia, Paraguay, Venezuela, and Luxembourg, among others.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Oct. 26, 2007, Moody's Investors Service has assigned a Ba1
rating to Agilent Technologies, Inc.'s proposed offering of
USUS$500 million senior notes due 2017 and affirmed its existing
ratings and stable outlook.


CELESTICA INC: Fourth Quarter 2007 GAAP Net Loss is US$11.7-Mln
---------------------------------------------------------------
Celestica Inc. has announced financial results for the fourth
quarter and year ended Dec. 31, 2007.

Revenue was US$2,211 million, down 2% from US$2,262 million in
the fourth quarter of 2006.  Net loss on a GAAP basis for the
fourth quarter was US$11.7 million or US$0.05 per share,
compared to GAAP net loss of US$60.8 million or US$0.27 per
share for the same period last year.  Restructuring charges in
the quarter were US$24 million compared to US$59 million for the
same period last year.  GAAP net loss for the quarter also
included a non-cash write-down of long-lived assets of US$15
million.

Adjusted net earnings for the quarter were US$37.2 million or
US$0.16 per share compared to US$6.5 million or US$0.03 per
share for the same period last year.  These results compare with
the company's guidance for the fourth quarter, announced on Oct.
25, 2007, revenue of US$2.0 to US$2.15 billion and adjusted net
earnings per share of US$0.10 to US$0.16.

For 2007, revenue was US$8,070 down 8%, compared to US$8,812
million for 2006.  Net loss on a GAAP basis was US$13.7 million
or US$0.06 per share compared to GAAP net loss of US$150.6
million or US$0.66 per share for last year.  Adjusted net
earnings for 2007 were US$62.3 million or US$0.27 per share
compared to adjusted net earnings of US$93.5 million or US$0.41
per share for 2006.

"We are pleased with the strong results our company delivered in
the fourth quarter," said Celestica President and Chief
Executive Officer, Craig Muhlhauser.  "Since implementing our
turnaround plans 12 months ago, we have undergone a major
transformation which has resulted in our best ever and industry
leading inventory turns, strong margin recovery and an improving
trend in returns on invested capital."

"We are executing well and our financial position is strong.  We
know we have more work to do in order to deliver continued
improvements in our future performance, but we are encouraged
with our financial and operational position as we enter 2008."
Mr. Muhlhauser continued.

                            Outlook

For the first quarter ending March 31, 2008, the company
anticipates revenue to be in the range of US$1.7 billion to
US$1.9 billion, and adjusted net earnings per share to range
from US$0.06 to US$0.11.  The topline and bottom line guidance
reflects the seasonal impacts in the March quarter for the
company's communications, information technology and consumer
business.

The company has also determined it will expand its restructuring
program by US$50 million to US$75 million during 2008 in order
to further reduce fixed costs and overhead expenses.

                    About Celestica Inc.

Celestica Inc. (NYSE:CLS) -- http://www.celestica.com/--
provides innovative electronics manufacturing services.  Its
global manufacturing and supply chain network, the company
delivers competitive advantage to companies in the computing,
communications, consumer, industrial, and aerospace and defense
end markets.   Celestica operates a highly sophisticated global
manufacturing network with operations in Brazil, China, Ireland,
Italy, Japan, Malaysia, Philippines, Puerto Rico, and the United
Kingdom, among others.

                        *     *     *

As reported in the Troubled Company Reporter on May 4, 2007,
Moody's Investors Service downgraded Celestica Inc.'s corporate
family rating to B1 from Ba3 and the senior subordinated note
ratings to B3 from B2.   Simultaneously, Moody's lowered the
company's speculative grade liquidity rating to SGL-2 from SGL-
1.


HORIZON LINES: Board Moves to Declare US$0.11 Per Share Dividend
----------------------------------------------------------------
Horizon Lines, Inc. Board of Directors has voted to declare a
cash dividend on its outstanding shares of common stock of
US$0.11 per share, payable on March 15, 2008, to all
stockholders of record as of the close of business on March 1,
2008.

The company also announced that it will hold its 2008 Annual
Stockholder Meeting on Tuesday, June 3, 2008, in Charlotte,
North Carolina.  Stockholders of record at the close of business
on April 3, 2008 will be entitled to notice of and to vote at
the meeting.

Headquartered in Charlotte, North Carolina, Horizon Lines Inc.
(NYSE: HRZ) -- http://www.horizon-lines.com/-- is a domestic
ocean shipping and integrated logistics company comprised of two
primary operating subsidiaries.  Horizon Lines LLC operates a
fleet of 21 U.S.-flag containerships and 5 port terminals
linking the continental United States with Alaska, Hawaii, Guam,
Micronesia and Puerto Rico.  Horizon Logistics LLC offers
customized logistics solutions to shippers from a suite of
transportation and distribution management services designed by
Aero Logistics, information technology developed by Horizon
Services Group and intermodal trucking and warehousing services
provided by Sea-Logix.

                        *     *     *

Moody's Investor Services placed Horizon Lines Inc.'s long-term
corporate family and probability of default ratings at 'B1' in
July 2007.  The ratings still hold to date with a stable
outlook.


STANDARD MOTOR: Paying US$0.09 Per Share Dividend on March 3
------------------------------------------------------------
Standard Motor Products, Inc. Board of Directors has approved
payment of a quarterly dividend of nine cents per share on the
common stock outstanding.  The dividend will be paid on March 3,
2008, to stockholders of record on Feb. 15, 2008.

Headquartered in Long Island City, New York, Standard Motor
Products Inc. (NYSE: SMP) -- http://smpcorp.com/-- manufactures
and distributes replacement parts for motor vehicles in the
automotive aftermarket industry.  The company supplies Engine
Management and Temperature Control parts for motor vehicles -
domestic and imported, new as well as older vehicles.  Parts are
sold throughout the U.S., Canada, Central and South America,
Europe and Asia, by traditional warehouse distributors and auto
parts stores, as well as major retail stores.  Standard Motor
Products Inc has more than 20 factories and distribution centers
throughout the U.S., Puerto Rico, Canada, Europe and the Far
East.

                        *     *     *

As reported in the Troubled Company Reporter on July 26, 2007,
Standard & Poor's Ratings Services revised its outlook on
Standard Motor Products Inc. to positive from negative.  The
ratings including the 'B-' corporate credit rating, were
affirmed.



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

LEAR CORP: Incurs US$645-Million Net Loss in Fourth Quarter 2007
----------------------------------------------------------------
Lear Corporation has reported improved financial results for the
fourth quarter and full year 2007 compared with year-ago levels
and updated its financial outlook for 2008.

        Fourth-Quarter and Full-Year 2007 Highlights:

   -- Net sales in core businesses up 6% in Q4 and 5% for FY vs.
      year ago

  -- Core operating earnings up 11% in Q4 and 34% for Fiscal
     Year vs. year ago

   -- Free cash flow of US$434 million for full year -- best
      since 2003

   -- Continued to diversify sales - about 60% of revenue
      outside of N.A. in Fourth Quarter

   -- Aggressive actions taken to improve cost structure since
      2005

   -- ProTec(TM) PluS named finalist in 2008 Automotive News
      PACE Awards

For the fourth quarter of 2007, Lear reported net sales of
US$3.9 billion and pretax income of US$45.1 million, including
restructuring costs and other special items of US$94.9 million.
This compares with net sales of US$4.3 billion and a pretax loss
of US$635.9 million for the fourth quarter of 2006, including a
loss of US$607.3 million related to the divestiture of the
Interior business and restructuring costs and other special
items of US$91.8 million.

Income before interest, other income expense, income taxes,
restructuring costs and other special items was US$178.6
million in the fourth quarter of 2007.  This compares with core
operating earnings of US$161.1 million in the fourth quarter of
2006, excluding the divested Interior business.  A
reconciliation of core operating earnings to pretax income
(loss) as determined by generally accepted accounting principles
is provided in the supplemental data pages.

"We have been successful in restructuring our operations to
achieve improved financial results at lower production levels,"
said Lear Chairman, Chief Executive Officer and President, Bob
Rossiter.  "We remain committed to continuously improving the
fundamentals of our business -- quality, customer satisfaction,
innovation and cost structure.  Going forward, the Lear team is
focused on profitably growing and further improving the long-
term competitiveness of our seating and electrical and
electronic businesses."

For the fourth quarter of 2007, net sales in the company's core
businesses were up over US$200 million from the prior year,
primarily reflecting favorable foreign exchange and the addition
of new business outside of North America, offset in part by
unfavorable platform mix in North America.  Operating
performance improved from the year-earlier results, reflecting
the company's cost improvement actions and restructuring
initiative, as well as benefits from new business outside of
North America.

In the seating segment, operating margins were unchanged from a
year ago, reflecting favorable cost performance from
restructuring and ongoing efficiency actions, selective vertical
integration and the benefit of new business globally, offset by
unfavorable platform mix in North America.  In the electrical
and electronic segment, operating margins improved slightly
reflecting the favorable impact of net commodity costs.

Lear reported fourth-quarter 2007 net income of US$27.0 million,
or US$0.34 per share, including restructuring costs and other
special items.  This compares with a net loss of US$645.0
million, or US$8.90 per share, including restructuring costs and
other special items, for the fourth quarter of 2006.

Free cash flow in the fourth quarter of 2007 was US$170.9
million, compared with US$254.4 million in the fourth quarter of
2006.  The lower cash flow reflects primarily the timing of
engineering and tooling recoveries.  Net cash provided by
operating activities was US$157.4 million and US$179.2 million
in the fourth quarters of 2007 and 2006, respectively.

Also during the fourth quarter, Lear's ProTec(TM) PluS self-
aligning active head restraint system was selected as a
finalist and Lear's SoyFoam(TM) received honorable mention in
the 14th annual Premier Automotive Suppliers' Contribution to
Excellence Award competition, which is jointly presented by
Automotive News, Microsoft, SAP and Transportation Research
Center Inc.


                   2007 Full-Year Results

For the full year 2007, Lear reported net sales of US$16.0
billion and pretax income of US$331.4 million, including
restructuring costs and other special items of US$204.9 million.
This compares with net sales of US$17.8 billion and a pretax
loss of US$655.5 million, including restructuring costs and
other special items of US$770.2 million, for the full year 2006.

Full-year 2007 net sales in core businesses were US$15.3
billion, up about US$700 million from 2006, reflecting the
addition of new business primarily outside of North America and
favorable foreign exchange, offset by lower industry production
and unfavorable platform mix in North America.

Excluding the divested Interior business, income before
interest, other expense, income taxes, restructuring costs
and other special items was US$748.5 million in 2007, compared
with US$557.8 million in 2006.  The improvement reflects
favorable cost performance from restructuring and ongoing
efficiency actions, selective vertical integration and the
benefit of new business, partially offset by lower industry
production and unfavorable platform mix in North America.  A
reconciliation of core operating earnings to pretax income
(loss) as determined by generally accepted accounting principles
is provided in the supplemental data pages.

"We have seen promising results from our strategy to restructure
our global operations, deliver superior quality products and
service, encourage innovation and continue to diversify our
sales on a customer, regional and vehicle segment basis," Mr.
Rossiter continued.

Lear reported net income of US$241.5 million, or US$3.09 per
share, including restructuring costs and other special items,
for the full-year 2007.  This compares with a net loss of
US$707.5 million, or US$10.31 per share, including special
items, for the full-year 2006.  The company's 2007 net income
excluding restructuring costs and other special items was
US$409.6 million, or US$5.24 per share.  A reconciliation of
adjusted net income to net income as determined by generally
accepted accounting principles is provided in the supplemental
data pages.

Free cash flow in 2007 was US$433.6 million.  This compares with
free cash flow of US$115.7 million in 2006.  The improvement
reflects higher earnings and the divestiture of the Interior
business.  Net cash provided by operating activities was
US$466.9 million and US$285.3 million in 2007 and 2006,
respectively.

The company continued to diversify its sales, with about 60% of
revenue in the fourth quarter and 55% of revenue in the full
year generated outside of North America.  Lear also continued to
improve its business structure by implementing US$386 million in
global restructuring actions since 2005.

                   2008 Full-Year Outlook

Lear expects 2008 worldwide net sales of approximately US$15
billion, reflecting primarily the addition of new business
globally and the positive impact of foreign exchange, more than
offset by lower vehicle production and unfavorable platform mix
in North America.

The company anticipates 2008 income before interest, other
expense, income taxes, restructuring costs and other special
items of US$660 to US$700 million.  Restructuring costs in 2008
are estimated to be about US$100 million.

Interest expense for 2008 is estimated to be between US$185 and
US$195 million.  Pretax income before restructuring costs and
other special items is estimated to be in the range of US$430 to
US$470 million.  Tax expense is expected to be approximately
US$135 million, depending on the mix of earnings by country.

Capital spending in 2008 is estimated in the range of US$255 to
US$275 million.  Depreciation and amortization expense is
estimated at about US$300 million.  Free cash flow is expected
to be solidly positive, at US$250 million or more, for the year.

Key assumptions underlying Lear's financial outlook include
expectations for industry vehicle production of approximately
14.4 million units in North America and 20.1 million units in
Europe.  The company expects production for the Domestic Three
to be down about 9% in North America.  In addition, The company
is assuming an exchange rate of US$1.45/Euro.

                   About Lear Corporation

Based in Southfield, Michigan, Lear Corporation (NYSE:LEA) --
http://www.lear.com/-- supplies automotive interior systems and
components.  Lear provides complete seat systems, electronic
products and electrical distribution systems and other interior
products.  The company has more than 90,000 employees at 236
facilities in 33 countries.

Lear also operates in Latin American countries including
Argentina, Mexico, and Venezuela.  Its European operations
are located in Czech Republic, United Kingdom, France, Germany,
Honduras, Hungary, Poland, Portugal, Romania, Russia, Slovakia,
Spain, Sweden, South Africa, Morocco, Netherlands, Tunisia and
Turkey.  Its Asian facilities are in Singapore, China, India,
Japan, Philippines, South Korea, and Thailand.

                         *     *     *

As reported in the Troubled Company Reporter-Latin America on
Sept. 5, 2007, Moody's Investors Service affirmed Lear
Corporation's Corporate Family Rating of B2 with a stable
outlook.  Ratings on the company's term loan of B2 and on
its unsecured notes of B3 were similarly affirmed but with
slight revisions to their respective LGD point estimates.
The company's liquidity rating of SGL-2, designating good
liquidity was also affirmed.

Ratings affirmed with revised LGD point estimates:

  -- Corporate Family Rating, B2

  -- Probability of Default, B2

  -- Senior Secured Term Loan, B2 (LGD-3, 47%) from B2 (LGD-4,
     50%)

  -- Senior Unsecured Notes to B3 (LGD-4, 58%) from B3 (LGD-4,
     61%)

  -- Shelf ratings for senior unsecured, subordinated and
     preferred, (P)B3 (LGD-4, 58%), (P)Caa1(LGD-6, 97%), and
     (P)Caa1 (LGD-6, 97%) respectively from (P)B3 (LGD-4, 61%),
     (P)Caa1 (LGD-6, 97%), and (P)Caa1 (LGD-6, 97%)
     respectively.

  -- Speculative Grade Liquidity Rating, SGL-2


PEABODY ENERGY: Earns US$421.3 Million in Qtr. Ended December 31
----------------------------------------------------------------
Peabody Energy has reported full-year 2007 EBITDA from
continuing operations of US$955.9 million, an increase of 6
percent over comparable 2006 EBITDA.  2007 earnings from
continuing operations totaled US$1.56 per share on income of
US$421.3 million, compared with US$2.13 per share and US$574.5
million in 2006.  Income was impacted by US$56 million, or
US$0.21 per share, in lower-than-expected tax benefits
reflecting the impact of foreign exchange rates on deferred
taxes.  The company also set a new company mark for annual coal
sales of 237.8 million tons and revenues of US$4.6 billion.

"Global coal demand and pricing continues to rise for all coal
products, U.S. prices continue to strengthen, and the pull of
Eastern U.S. coal into the export markets is benefiting the
Midwest and Colorado basins and beginning to reach the Powder
River Basin," said Peabody Chairperson and Chief Executive
Officer Gregory H. Boyce.  "In the past 18 months, we have
invested significant capital on productivity and growth
projects, made strategic acquisitions in Australia, spun off
non-core operations and expanded our global trading activities.
These actions, combined with our growing global market leverage,
establish the platform for a long period of sustained growth."

               Continuing Operations Results

Full-year 2007 revenues from continuing operations grew 11
percent over the prior year to a record US$4.6 billion on 237.8
million tons.  Higher revenues reflect increased volumes in
nearly all regions and improved United States prices.  Average
U.S. revenues per ton grew 16 percent, driven by a 29 percent
increase in premium Powder River Basin prices.  Australian
revenues reflect lower metallurgical coal prices associated with
annual contracts that began in April 2007, as well as a change
in product mix with increased thermal coal sales compared with
the company's previous position of primarily metallurgical coal.

2007 EBITDA totaled US$955.9 million, 6 percent above prior-year
levels.  Contributions from U.S. operations grew 20 percent to
US$789.8 million on improved pricing and volume.  Full-year
EBITDA from Australian operations was US$159.5 million compared
to US$278.4 million in the prior period.  The current year was
impacted by approximately US$225 million in lower metallurgical
coal pricing, higher demurrage and unfavorable foreign exchange
rates.  Peabody's expanded Trading and Brokerage and Resource
Management activities continued to contribute increasing EBITDA
in 2007.

2007 interest expense and depreciation, depletion and
amortization increased year-over-year.  This relates to the
prior-year acquisition of Excel Coal, while the volume and
pricing benefits of the 2006 acquisition of Excel Coal will be
more fully realized in 2008 and beyond.

The company's 2007 tax benefit of US$78.2 million includes the
benefit related to the reduction of income tax valuation
allowances based on the company's positive earnings outlook for
2008 and beyond, partly offset by ongoing tax expense and the
impact of foreign exchange losses on deferred tax liabilities
noted above.  Income was US$421.3 million with earnings of
US$1.56 per share, compared with US$574.5 million and US$2.13
per share in the comparable prior-year period.

All results are from continuing operations, reflecting the
company's spin-off of Patriot Coal Corporation on Oct. 31, 2007.
The company reported an after-tax loss of US$157.0 million from
discontinued operations, which includes transaction charges
related to the spin-off.  The spin-off resulted in significant
shareholder return in 2007, with Patriot's share value
increasing 21 percent during the last two months of the year and
BTU shareholders realizing a 63.6 percent total return for the
year.  The spin-off of Patriot results in multiple long-term
benefits for Peabody.  The company has increased its surface
mining share to 90 percent of its U.S. production; lowered its
long-term liability profile; and reduced its exposure to the
permitting, compliance and operating costs and volatility that
mostly affect Eastern underground mines.  In addition, while
Peabody is no longer an Appalachian producer, the company has
retained a market presence in the Eastern U.S. coal markets
through its trading activities and brokerage arrangements.

"With the recent expansion of our Australian operating platform,
the productivity and throughput enhancements in the Powder River
Basin and the increase in our global trading activities, we are
well positioned to serve growing global demand," said President
and Chief Commercial Officer, Richard A. Navarre.  "We expect to
benefit from these investments and strong market conditions in
2008.  And we have significant opportunities in subsequent
years, from our unpriced position in the Powder River Basin and
our growing leverage to high-priced international markets as
legacy contracts roll off."

                    Safety and Reclamation

2007 represented another year in which Peabody was widely
recognized for its safety and reclamation practices. The company
received eight safety awards during the year, including the U.S.
Department of Labor's Sentinels of Safety award for the safest
large surface mine.  This is the third time in four years one of
Peabody's operations has received the United States' highest
honor in coal mining safety.  Peabody also received a notable 12
awards recognizing the company's premier reclamation practices
and staff, including the U.S. Department of the Interior's
Silver and Bronze Good Neighbor awards.

                             Markets

"Record global coal demand and continued tightness in the
worldwide coal supply chain have created outstanding market
fundamentals," said Mr. Boyce.  "Global coal prices are at high
levels and rising, world coal inventories are low and
decreasing, U.S. exports are accelerating, and new coal-fueled
generation is being built at a fast pace.  These market
fundamentals lead to expectations that both metallurgical and
thermal coal price settlements will be significantly above
prior-year levels."

                     International Markets

Global thermal coal prices continued to gain strength in recent
months and are running at record levels in all key markets.
Spot thermal coal pricing in Australia has exceeded US$100 per
tonne, which is 90 percent above year-ago levels.  Other index
prices from Asia, Europe, South Africa and South America are 65
percent to 110 percent above prior-year levels.

China's net export position continued to decline in 2007 due to
growing internal demand, and the country recently halted exports
due to critically low coal stockpiles.  This is an abrupt
turnaround for a nation that exports more than 50 million tons
per year and for much of the decade has been the third-largest
global coal exporter.  The Indian government has asked
generators to import 65 percent more coal in 2008 due to
critically low stockpiles.  The major coal exporting nations of
Indonesia, Russia and South Africa are increasing domestic coal
use to meet growing electricity demand.  And South Africa
recently curtailed export coal mining due to domestic power
shortages.

Metallurgical coal demand continues to outpace supply, resulting
in industry reports of spot delivered prices in excess of US$200
per tonne for premium hard-quality coking coal and US$120 to
US$165 per tonne for PCI and semi-soft products. This has led to
expectations for new fiscal year settlements significantly above
last year's levels.

Stockpiles at many coal export terminals around the world remain
low, with reports that inventories in South Africa are at 15-
year lows. Newcastle shipments increased 6 percent in 2007 to 85
million tonnes.  The Australia rail and port congestion has
improved in the past quarter at Newcastle, with the vessel queue
down by one-third and wait times reduced to 10 days.  The
Newcastle Capacity Balancing System has been extended through
the end of 2008.  At Dalrymple Bay in Queensland, the world's
largest metallurgical coal port, the vessel queue stands at
approximately the same level as one quarter ago.  Following its
completion in the first quarter, the next phase of Dalrymple Bay
expansion is expected to improve capacity for the remainder of
the year.

The company's Australian sales portfolio includes a blend of
products, with a range of metallurgical and thermal coal
available to be priced in the strong markets.  The company's
thermal sales mix includes approximately 5 million tons
committed to Australian generators and nearly 5 million tons of
export coal that has already been priced for the upcoming fiscal
year -- the majority of which was sold by Excel Coal prior to
Peabody's October 2006 acquisition, at prices well below current
market. Most legacy contracts will roll off over the next two
years, r epresenting significant upside beyond 2008.

Peabody has 9 to 10 million tons of Australian coal production
available for pricing in 2008, two-thirds of which is
metallurgical coal.  Improved market pricing is expected to
begin to benefit Peabody's results after the first quarter, when
the new fiscal year for Australian settlements begins.  Peabody
has 17 to 20 million tons of Australian coal unpriced for 2009,
approximately half of which is metallurgical coal, and 21 to 24
million tons unpriced for 2010.

New coal plants continue to be developed around the globe.  The
International Energy Agency projects that coal's market share of
total energy will grow from 25 percent today to 28 percent by
2030. More than 80 percent of the growth in global coal demand
is expected to come from China and India.  China alone added an
estimated 96,000 MW of new coal-fueled generation in 2007,
representing more than 300 million tons of annual coal use.
Coal demand in India is forecast to nearly triple by 2030.  All
told, global coal consumption is expected to grow 73 percent, or
more than 4 billion tons by 2030.

                    U.S. Domestic Markets

Increasing tightness in the global market is driving
international demand for U.S. coal.  Peabody continues to raise
its estimate of U.S. exports, and expects net exports to more
than triple over levels of just two years ago. U.S. exports are
expected to exceed 75 million tons in 2008, more than 50 percent
above 2006 levels.  In addition, U.S. coal imports are expected
to decline as more South American exports are diverted to
Europe.  Combined, this could result in more than 45 million
tons of net U.S. exports in 2008, compared with just 20 million
tons in 2007 and 13 million tons in 2006.

Just since the first of the year, Peabody has entered into U.S.
export transactions for 2008 and 2009 to deliver coal from the
Illinois Basin, Rocky Mountain area and Powder River Basin to
Europe and Japan.

The strength of higher export demand is benefiting the Powder
River Basin both directly and indirectly as the region's coal
continues to penetrate further into the Eastern United States
and move into export markets.  In addition to coal exports,
Peabody has agreed to supply Powder River Basin coal to a new
Mid-Atlantic customer for test burns, as the Powder River Basin
gains new markets and continues to expand its North American
reach.

Overall demand for U.S. coal rose an estimated 2.7 percent in
2007 while production declined 1.0 percent, resulting in a 40
million ton-plus tightening of the net supply-demand position
and reversing the prior year's oversupply condition.
Inventories have moved to below-average levels in the Illinois
Basin and Northern Appalachia, with further tightening likely
due to significant increases in U.S. coal exports.  During
January 2008, U.S. inventories are depleting at an average of 2
million tons per week, compared with just a 1 million ton
decline in all of January 2007.  And published prices for
forward-year Powder River Basin deliveries have increased more
than 75 percent in just the past year.

In these improving markets, Peabody has the industry's largest
volumes unpriced beyond this year. The company has 80 to 90
million tons unpriced for 2009 and 140 to 150 million tons
unpriced for 2010. Approximately 97 percent of its planned U.S.
production is priced for 2008.

Longer term, in the face of some opposition against new energy
projects, the largest new coal-fueled plant build-out in several
decades is under way and new coal plants are advancing.
Currently, 40 units are new, under construction or in late-stage
development in 19 states.  This represents more than 20,000 MW
of capacity and approximately 85 million tons of annual coal
use. Eleven of these units began construction in 2007.

In its recent Annual Energy Outlook, the U.S. Energy Information
Administration forecasts that coal-fueled generation will
account for nearly 60 percent of all new capacity added through
2030, raising coal's share of plants in total generation from 40
percent now to 45 percent in 2030.

                             Outlook

Peabody is initiating full-year 2008 targets, including
production of 220 to 240 million tons with sales of 240 to 260
million tons.  This includes expected production of 23 to 25
million tons in Australia.

The company's full-year 2008 results will be affected by a
number of issues including final Australian coal price
settlements for the upcoming Japanese fiscal year; Australian
coal chain performance; escalation of key supply costs including
approximately US$150 million in higher energy-related expenses
and the effects of exchange rates.  The company expects strong
improvements in U.S. and Australia operating results from higher
prices and increased volumes, partly offset by some of the
factors discussed above.  Full-year 2008 EBITDA is targeted to
be US$1.0 to US$1.3 billion.

Peabody is targeting full-year 2008 earnings of US$1.00 to
US$1.85 per share, reflecting the company's stronger operating
performance offset by US$0.55 to US$0.85 per share in higher
non-cash tax expenses and depreciation, depletion and
amortization.  Peabody's effective tax rate is expected to be
approximately 15 percent in 2008.

Peabody is targeting first quarter 2008 EBITDA of US$175 to
US$250 million and first quarter earnings of US$0.05 to US$0.25
per share.  First quarter results are expected to vary from the
performance in later quarters due to the timing of higher-priced
export coal supply agreements that begin in the second quarter,
higher demurrage costs and increased Australia coal chain issues
early in the year, and final determination of any effects of
Queensland flooding on production or shipments.

                    About Peabody Energy

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

                        *      *      *

As reported in the Troubled Company Reporter-Latin America on
Nov. 15, 2007, Fitch has affirmed these ratings for Peabody
Energy Corporation's:

  -- Issuer Default Rating at 'BB+';

  -- Senior unsecured notes at 'BB+';

  -- Senior unsecured revolving credit and term loan at 'BB+';

  -- Convertible junior subordinated debentures due 2066 at
     'BB-'.

Fitch's outlook is stable.


PETROLEOS DE VENEZUELA: Social Program Expenses Put Firm at Risk
----------------------------------------------------------------
Venezuelan state-run oil firm Petroleos de Venezuela SA' state
spending caused increased financial risk to the firm, Business
News Americas reports.

Petroleos de Venezuel is being pressured by increased social
program expenses, BNamericas relates, citing Fitch's Latin
America corporate finance and lead oil and gas analyst Gianna
Bern.

BNamericas notes that  Petroleos de Venezuela's expenses on
taxes and social programs rose US$12 billion to almost US$32.1
billion in 2006, compared to 2005.

Ms. Bern told BNamericas that any major downturn in world oil
prices could therefore place Petroleos de Venezuela at increased
risk.  The potential economic decline in a major economy like US
or China could weaken high crude prices in the medium term.

Ms. Bern commented to BNamericas, "Over the medium term, any
significant drop in crude oil prices will have an adverse effect
on PDVSA [Petroleos de Venezuela] and its ability to continue
funding social programs and maintain an already aging refining
infrastructure.  While PDVSA is sitting on the largest
hydrocarbons reserve in the southern hemisphere, it's paid a
high price for its nationalization efforts both in terms of its
increased debt and operational costs."

Ms. Bern explained to BNamericas that it's almost impossible to
predict where oil prices could trend.  However, anything below
US$60 per barrel would make things difficult for Petroleos de
Venezuela.

BNamericas notes that Venezuela's oil export basket price from
Jan. 21-25 was US$81.29 a barrel.

However, Petroleos de Venezuela told BNamericas that it is
protected from any potential decline in oil prices.

Petroleos de Venezuela head Rafael Ramirez said in a statement,
"We receive 86% of the price of the revenue for every barrel of
oil sold.  With this rate, we can endure any unstable situation
and won't be affected by global economic fluctuations."

State revenue is guaranteed due to the nationalization of oil-
producing assets, BNamericas states, citing Mr. Ramirez.

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.

As reported in the Troubled Company Reporter-Latin America on
Jan. 30, 2008, Moody's Investors Service said that the reported
increase in Petroleos de Venezuela's total consolidated
debt to US$16 billion in 2007, from approximately US$2.9 billion
at the end of 2006, will not affect the company's B1 global
local currency issuer rating with a stable outlook, based on the
company's low financial leverage and the level of its current
credit rating, the latter of which reflects Venezuelan sovereign
risk and control over the state oil company's operations.


* VENEZUELA: Ecuador To Open US$5-Bil. Refinary Project in 2012
---------------------------------------------------------------
Ecuador is planning to launch a 300,000 barrel-a-day
refinery with Venezuela in 2012, Ayesha Daya and Steven Bodzin
at Bloomberg News reports, citing Oil Minister Galo Chiriboga.

Mr. Chiriboga told the reporters, during a meeting of the
Organization of Petroleum Exporting Countries, that when
Ecuador's oil is drained, the US$5 billion project will receive
crude from Venezuela.  He added that technical studies on the
project must be completed by June, the same paper says.

According to Mr. Chiriboga, Venezuelan president Hugo Chavez has
identified the project provided a way to reduce reliance on the
U.S.

Bloomberg relates that Ecuador, due to its refining capacity
deficiency, would import about US$3 billion in fuels in 2008.
In addition, it sends crude oil to Venezuela in return for
shipments of refined products.

                        *     *     *

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.


* BOND PRICING: For the Week January 28 to February 1
-----------------------------------------------------

Issuer                 Coupon   Maturity   Currency   Price
------                 ------   --------   --------   -----

ARGENTINA
---------
Argnt-Bocon PR11        2.000    12/3/10     ARS      64.33
Argnt-Bocon PR13        2.000    3/15/24     ARS      67.27
Arg Boden               2.000    9/30/08     ARS      29.78
Argent-Par              0.630   12/31/38     ARS      41.78

BRAZIL
------
CESP                    9.750    1/15/15     BRL      58.77

CAYMAN ISLANDS
--------------
Vontobel Cayman         3.000    2/18/08     JPY      74.90
Vontobel Cayman         7.000    3/31/38     USD      73.65
Vontobel Cayman         7.250    3/29/49     USD      60.87
Vontobel Cayman         7.250    6/27/08     CHF      74.50
Vontobel Cayman         7.450    2/22/08     CHF      51.40
Vontobel Cayman         7.900    2/22/08     CHF      59.95
Vontobel Cayman         8.250    4/25/08     CHF      68.80
Vontobel Cayman         8.250    7/28/08     CHF      60.20
Vontobel Cayman         8.300    3/20/08     CHF      71.70
Vontobel Cayman         8.500    3/27/08     CHF      62.05
Vontobel Cayman         8.700    3/27/08     CHF      66.35
Vontobel Cayman         8.750    3/27/08     CHF      59.35
Vontobel Cayman         8.900    3/27/08     CHF      70.50
Vontobel Cayman         9.050     7/1/08     CHF      59.05
Vontobel Cayman         9.100   10/31/08     CHF      70.40
Vontobel Cayman         9.250    2/22/08     CHF      66.55
Vontobel Cayman         9.350    1/25/08     CHF      73.30
Vontobel Cayman         9.350    1/25/08     CHF      65.15
Vontobel Cayman         9.600    2/22/08     CHF      42.05
Vontobel Cayman        10.000   10/24/08     CHF      70.40
Vontobel Cayman        10.200     2/4/08     CHF      62.00
Vontobel Cayman        10.200    2/15/08     CHF      72.60
Vontobel Cayman        10.350    2/22/08     EUR      74.30
Vontobel Cayman        10.400     7/8/08     CHF      67.00
Vontobel Cayman        10.450    2/22/08     CHF      71.70
Vontobel Cayman        10.500    1/25/08     CHF      60.60
Vontobel Cayman        10.800    9/26/08     CHF      60.20
Vontobel Cayman        10.850    3/27/08     EUR      59.55
Vontobel Cayman        10.900    9/26/08     CHF      71.20
Vontobel Cayman        11.000    2/19/08     JPY      74.90
Vontobel Cayman        11.000    6/20/08     CHF      55.60
Vontobel Cayman        11.150    2/15/08     CHF      74.40
Vontobel Cayman        11.400    2/15/08     CHF      60.60
Vontobel Cayman        11.500    6/27/08     EUR      63.15
Vontobel Cayman        12.250    6/27/08     EUR      63.55
Vontobel Cayman        13.500    2/22/08     CHF      38.60
Vontobel Cayman        16.000     2/4/08     USD      20.70
Vontobel Cayman        20.000    1/23/09     EUR      75.00

PUERTO RICO
-----------
Puerto Rico Cons.       5.900    4/15/34     USD      63.00
Puerto Rico Cons.       6.000   12/15/34     USD      65.00

VENEZUELA
---------
Petroleos de Ven        5.250    4/12/17     USD      73.50
Petroleos de Ven        5.375    4/12/27     USD      61.75
Petroleos de Ven        5.500    4/12/37     USD      59.78

                            ***********

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.  Marie Therese V. Profetana, Sheryl Joy P. Olano,
Rizande de los Santos and Pamella Ritah K. Jala, Editors.

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

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed
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           * * * End of Transmission * * *