TCRLA_Public/080208.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

             Friday, February 8, 2008, Vol. 9, Issue 28

                             Headlines


A R G E N T I N A

ALITALIA SPA: AirOne Readies Binding Offer for Italy's Stake
ANGEL OSCAR: Trustee Verifies Proofs of Claim Until March 28
BUCKEYE TECH: Earns US$13.9 Million in 2nd Quarter Ended Dec. 31
DAWN FOODS: Seeks Bankruptcy Approval from Buenos Aires Court
DELTA AIR: Merger Talks with Northwest Intensifies

INSTITUTOS MEDICOS: Files for Reorganization in Court
LANCI IMPRESORES: Files for Reorganization in Buenos Aires Court
NESTOR ONOFRE: Seeks Bankruptcy Approval from Buenos Aires Court

* ARGENTINA: IMF Asks Statistics Agency to Clarify Calculations

B A H A M A S

KNOLL INC: Reports US$20.7-Mln Net Income in Fourth Quarter 2007

B A R B A D O S

B E R M U D A

SEA CONTAINERS: Reaches Pact with Pension Schemes Trustees
SECURITY CAPITAL: Moody's Cuts Insurance Strength Rating to 'A3'

B R A Z I L

BANCO ABC: Will Boost Lending by 65% in 2008
BANCO CRUZEIRO: 6.26& Non-Voting Capital in Bank Belongs to BBM
CONTINENTAL AIR: WSJ Says United Merger Talks "Have Grown Serious"
COREL CORP: Fourth Quarter 2007 GAAP Net Income is US$3.3 Million
CROWN HOLDINGS: S&P Shifts to Pos. Outlook; Holds BB- Debt Rating

JAPAN AIRLINES: To Begin 17% Hike on Int'l. Air Fare by April 1
QUAKER FABRIC: Can't File Plan Without Committee Consent
QUAKER FABRIC: Gets Go Signal to Sell Brazilian Unit for US$100K
SOLUTIA INC: Compels Banking Group to Honor $2 Bil. Exit Financing
UAL CORP: Resells Previously Issued 4.50% Senior Notes Due 2021

UNITED AIR: WSJ Says Continental Merger Talks "Have Grown Serious"
USINAS SIDERURGICAS: May Acquire More Iron Ore Assets in Brazil
VALMONT INDUSTRIES: Buys 70% Stake in West Coast Engineering

* BRAZIL: US Dollar Drop May Help in Debt Payment, Moody's Says

C A Y M A N   I S L A N D S

COCO FUND: Sets Final Shareholders Meeting for February 21
INTERNATIONAL MERCANTILE: Shareholders Meeting Set for Feb. 22
JEFFERIES PARAGON: Proofs of Claim Filing Is Until February 21
JEFFERIES PARAGON MASTER: Proofs of Claim Filing Ends on Feb. 21
JOHCM TRIDENT: Proofs of Claim Filing Deadline Is February 21

LDA HOLDINGS: Proofs of Claim Filing Deadline Is February 21
MAPLETREE REAL: To Hold Final Shareholders Meeting on Feb. 21
ML PRINCIPAL: Proofs of Claim Filing Is Until February 21
NEW ORIENTAL: Proofs of Claim Filing Deadline is February 22
PARMALAT SPA: Sells Football Club and Brand for EUR17.1 Million

PESCADORA LIMITED: Final Shareholders Meeting is on February 21
SCR MARKET: Proofs of Claim Filing Deadline Is February 21
SEAGATE TECH: Board of Directors Okays US$2.5BB Share Repurchase
SEAGATE TECHNOLOGY: S&P's BB+ Rating Unmoved by Share Repurchase
SOUTH SHORE: Proofs of Claim Filing Ends on February 21

TELEXPRESS INVESTMENTS: Proofs of Claim Filing Ends on Feb. 21
UBS PACTUAL: To Hold Final Shareholders Meeting on February 21
ZEBRA CAPITAL: Proofs of Claim Filing Deadline is February 21

C H I L E

CODELCO: Power Shortages May Adversely Affect Copper Output
SCIENTIFIC GAMES: Delivers Instant Ticket System to China Sports

C O L O M B I A

BANCO DE BOGOTA: Seeking Shareholders' Okay for Dividend
GRAN TIERRA: Closes Colombian Block Stake Buyout Deal With Avalon
POLYONE CORP: Reports US$7.1-Mln Net Income in Fourth Qtr. 2007

* COLOMBIA: Moody's Says US Dollar Drop May Help in Debt Payment
* COLOMBIA: US Free Trade Pact Promotes Opportunities, Cato Says

C O S T A   R I C A

DENNY'S CORP: To Report Fourth Quarter Financials on February 13

C U B A

D O M I N I C A

D O M I N I C A N   R E P U B L I C

BANCO INTERCONTINENTAL: Pedro Goico Denies Control of Pepe Card

E C U A D O R

* ECUADOR: Commission Lays Out Plan to Create Autonomous Regions

E L   S A L V A D O R

ALCATEL-LUCENT: Works with Oki Electric to Market WiMAX Terminals

F R E N C H   G U I A N A

G R E N A D A

G U A T E M A L A

G U Y A N A

H A I T I

H O N D U R A S

J A M A I C A

AIR JAMAICA: Starts Job Cutting Plan at Miami Marketing Dept.
DYOLL GROUP: To Voluntarily Liquidate Assets
NAT'L COMMERCIAL: Net Profit Increases to J$1.86B in 1st Quarter

M E X I C O

AMERICAN AXLE: Net Loss Drops to US$25MM in Qrtr. Ended Dec. 31
CALPINE CORP: CER's US$155 Million Bid for Hillabee Project Wins
COMPLETE RETREATS: To Close 61 Chapter 11 Cases
CROWN HOLDINGS: Earns $343 Million in 2007 Fourth Quarter
ENERSYS INC: Earns US$16 Million in Third Fiscal Quarter 2008

INTERSTATE HOTELS: Closes Hotel Buyout Deal With Blackstone Group
RESIDENTIAL CAPITAL: Moody's Downgrades Sr. Debt Rating to 'B2'

N I C A R A G U A

P A N A M A

P A R A G U A Y

P E R U

CABLE & WIRELESS: Names Tony Bromfield as New Unit CEO
QUEBECOR WORLD: BP Canada Wants to End Gas Supply to U.S. Plants
QUEBECOR WORLD: Can File Schedules and Statements Until March 5
QUEBECOR WORLD: CEP Graphical Seeks Discussion of Financial Woes

* PERU: US Drop Dollar May Help in Debt Payment, Moody's Says

P U E R T O   R I C O

ELECTRONIC DATA: Earns US$189 Million in Fourth Quarter 2007
MACY'S: Division Consolidation Cues Elimination of 2,550 Jobs

S U R I N A M E

* SURINAME: Low-B Ratings Reflect High Debt Burden, Moody's Says

T R I N I D A D   &   T O B A G O

U R U G U A Y

* URUGUAY: US Dollar Drop May Help in Debt Payment, Moody's Says

V E N E Z U E L A

EXIDE TECHNOLOGIES: Taps Phillip Damaska as Exec. Vice President
GMAC LLC: Moody's Downgrades Senior Unsecured Rating to 'B1'
NORTHWEST AIRLINES: Merger Talks with Delta Air Lines Intensifie


                         - - - - -

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

ALITALIA SPA: AirOne Readies Binding Offer for Italy's Stake
------------------------------------------------------------
AirOne S.p.A. and a group of local investors are preparing a
binding offer to acquire the Italian government's 49.9% stake in
Alitalia S.p.A., Bloomberg News reports.

AirOne told Bloomberg News that its offer will be financially
backed by Intesa Sanpaolo S.p.A., Goldman Sachs Group Inc., Morgan
Stanley and Nomura Holdings Plc.

According to local daily MF, TPG Inc. and Pirelli & S.p.A.
chairman Marco Tronchetti Provera may join AirOne in its Alitalia
bid.

AirOne said it would present an offer once it won its appeal at
the Italian Regional Administration Court of Lazio.  As reported
in the TCR-Europe on Feb. 5, 2008, AP Holding S.p.A., investment
arm of AirOne, has filed an appeal with the court  to declare null
and void a Dec. 28, 2007, decision of Italy's Ministry of Economy
and Finance to commence exclusive talks to sell the Italy's stake
to Air France.

According to Bloomberg News, AirOne winning the suit would allow
it to present its binding offer for the state-owned carrier.

AirOne chairman Carlo Toto insisted in mid-January that it
presented more economical offer for Alitalia, noting that its
business plan for the national carrier is supported by "four
among the world's most important banks that are ready to
formalize their commitment immediately should a private
negotiation be initiated."

"We don't want to halt the talks," a source privy to AP Holding
told Reuters.  "We also want to be able to present a binding
offer."

"There are still many questions open so we don't think the game
is over," Corrado Passera, who leads AirOne financial backer
Intesa Sanpaolo S.p.A., told Corriere della Sera.  "Everything
still has to be sorted out."

Alitalia and Italy have selected Air France-KLM's non-binding
offer over AirOne's.

As reported in the TCR-Europe on Jan. 17, 2008, Alitalia and
Italy have commenced exclusive sale talks with Air France-KLM.
The carriers have until mid-March to reach an agreement, which
would be approved by the government.

In its non-binding offer, Air France plans to:

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

   -- acquire 100% of Alitalia convertible bonds; and

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

                         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.


ANGEL OSCAR: Trustee Verifies Proofs of Claim Until March 28
------------------------------------------------------------
Hector Rodolfo Arzu, the court-appointed trustee for Angel Oscar
Martin y Silvia Liliana Diaz Sociedad de Hecho's reorganization
proceeding, will be verifying creditors' proofs of claim until
March 28, 2008.

Mr. Arzu will present the validated claims in court as individual
reports.  The National Commercial Court of First Instance No. 5 in
Buenos Aires, with the assistance of Clerk
No. 10, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by Angel Oscar 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 Angel Oscar's
accounting and banking records will be submitted in court.

La Nacion didn't state the reports submission deadlines.

Creditors will vote to ratify the completed settlement plan during
the assembly on Dec. 8, 2008.

The debtor can be reached at:

        Angel Oscar Martin y
        Silvia Liliana Diaz Sociedad de Hecho
        Bolivia 41
        Buenos Aires, Argentina


BUCKEYE TECH: Earns US$13.9 Million in 2nd Quarter Ended Dec. 31
----------------------------------------------------------------
Buckeye Technologies Inc. reported net income of US$13.9 million
on net sales of US$211.0 million for the second quarter ended
Dec. 31, 2007, compared with net income of US$3.8 million on net
sales of US$185.0 million in the same period of 2006.

Chairman and chief executive officer John B. Crowe said, "We had
an exceptional quarter.  Second quarter net sales were up 14.0%
compared to the same period last year.  Sales of US$211.0 million
are our highest revenue quarter ever.  The earnings improvement is
a combination of higher pricing, higher specialty wood volume and
cost control."

Mr. Crowe went on to say, "We are pleased with the quarter and
year-to-date revenue and income growth.  Our markets remain solid
and we will benefit from price increases that we implemented in
January.  In the current quarter, we anticipate lower nonwovens
production and revenue due to our previously announced volume
reduction from our Delta nonwovens facility.  Additionally, we
expect higher manufacturing costs at our Florida specialty wood
facility due to planned maintenance inspections.  While the just
completed quarter's earnings performance will be difficult to
repeat, we do anticipate strong performance in the January-March
quarter 2008."

                 Liquidity and Capital Resources

At Dec. 31, 2007, the company had US$23.6 million of cash and cash
equivalents and US$112.9 million borrowing capacity on its
revolving credit facility.  The portion of this capacity that the
company may borrow, if any, will depend on our financial results
and ability to comply with certain borrowing conditions under the
revolving credit facility.  As of Dec. 31, 2007, the company's
liquidity, including available borrowings and cash and cash
equivalents, was approximately US$136.5 million.

                          Balance Sheet

At Dec. 31, 2007, the company's consolidated balance sheet showed
US$983 million in total assets, US$580.8 million in total
liabilities, and US$402.2 million in total stockholders' equity.

Full-text copies of the company's consolidated financial
statements for the quarter ended Dec. 31, 2007, are available for
free at http://researcharchives.com/t/s?27be

                    About Buckeye Technologies

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

                          *     *     *

To date, Buckeye Technologies Inc. carries Moody's Investors
Service's B1 corporate family rating with a stable outlook.


DAWN FOODS: Seeks Bankruptcy Approval from Buenos Aires Court
-------------------------------------------------------------
The National Commercial Court of First Instance No. 19 in Buenos
Aires is studying the merits of Dawn Foods International SRL's
request to enter bankruptcy protection.

Dawn Foods filed a "Quiebra Decretada" petition, after failing to
pay its debts since Dec. 13, 2005.

The petition, once approved by the court, will transfer control of
the company's assets to a court-appointed trustee who will
supervise the liquidation proceedings.

Clerk No. 38 assists the court in this case.

The debtor can be reached at:

         Dawn Foods International SRL
         Reconquista 458
         Buenos Aires, Argentina


DELTA AIR: Merger Talks with Northwest Intensifies
--------------------------------------------------
Merger talks between Delta Air Lines Inc. and Northwest Airlines
Corp. have intensified that could lead to an agreement being
announced in the next two weeks, various reports say.

Key details of the deal have yet to be hammered out and
negotiations could still fall apart, according to The Wall Street
Journal, citing people familiar with the talks.

The reports note the potential dealbreaker was the structure of
the combined Delta-Northwest management, specifically Northwest
CEO Doug Steenland and his management team's role in the new
company.  The Journal's source says those issues were overcome
earlier this week.

When companies merge, it's not uncommon for the chief executives
to divide the leadership roles, with one taking the CEO post and
the other becoming chairman, according to TheStreet.com.  In the
case of Delta and Northwest, the situation is complicated by the
role of Daniel Carp, who became chairman of Delta when the carrier
emerged from bankruptcy in May 2007, TheStreet.com says.

Since Mr. Carp was brought in to enhance Delta's position, there
is a feeling that he should remain because of the progress the
company has made, TheStreet.com says, citing a source.
TheStreet.com's source says Mr. Steenland has apparently accepted
the idea that Mr. Carp and Delta CEO Richard Anderson will retain
their current posts in a new company.

Mr. Anderson, a former Northwest Airlines chief executive, assumed
the Delta CEO post from Gerald Grinstein in August.  That decision
to hire Mr. Anderson "raised new questions about Delta's future
strategy", WSJ reported at that time.

Mr. Anderson's appointment raises speculations that with an
outsider at the helm, Delta may reverse its "go it alone" strategy
and pursue a consolidation with Northwest, United Air Lines or
Continental Airlines, Business Week had said.

At the time of its bankruptcy, Delta and its unsecured creditors
committee fended off a $8,000,000,000 to $10,000,000,000
hostile takeover bid from US Airways Group, Inc.   Delta said it
was better off as a stand-alone carrier.

In January 2007, about two months since US Airways launched its
hostile bid, Delta and NWA were reported to have held discussions
about a potential merger.  While both companies denied the
reports, Mr. Grinstein subsequently admitted to sharing
information with Northwest.  "At the behest of our creditors'
committee we recently retained an investment banker to obtain
information from Northwest, a far cry from negotiating for a
merger with them," Mr. Grinstein told members of the Delta Board
Council, according to Reuters.

Delta did not discount any possibility of a merger post-
bankruptcy.  According to a prior WSJ report, the Creditors
Committee conditioned its support of Delta's stand-alone Chapter
11 plan of reorganization to a number of concessions, including
the appointment of a new board that favors consolidation as a
strategic opotion.

In October, Mr. Anderson said he saw "obvious benefits" for
Delta's employees and shareholders in Delta's merging with another
carrier, Meg Marco at The Star Tribune reported.  Although Mr.
Anderson did not name a potential merger target for Delta at that
time, analysts have argued that Northwest would make a good
partner because the carriers' routes complement each other, Ms.
Marco said.

As proposed, the Delta-Northwest deal would be a stock-for-stock
transaction, done "at market," meaning at roughly where the two
stocks are trading, with little or no premium for either side, WSJ
says.   The Journal adds that the dynamic has made non-economic
issues the center of the deal negotiations.

               United & Continental Talks Gain Steam

There is also a possibility Delta could wind up with United.  Both
carriers have continued exploratory talks over the past month, WSJ
says, citing people briefed on the matter.

Pardus Capital Management, a New York-based hedge fund, and major
stakeholder in both United and Delta, had urged both carriers to
consolidate, to save money and counter escalating jet-fuel prices
which rose by around 53% last year.

As reported in the Troubled Company Reporter on Jan. 22, 2008, Mr.
Anderson obtained approval from Delta's board of directors on Jan.
11, 2007, to engage in formal merger talks with both Northwest and
United.

Various reports, however, relate that a United-Continental merger
is more likely.  The reports state that exploratory merger talks
between the two carriers have grown serious.

Delta, the No. 3 U.S. carrier in terms of passenger traffic, has a
market value of over $4,100,000,000 -- higher than UAL's
$3,800,000,000, and Northwest's $3,700,000,000.  United is the
second-largest U.S. carrier, while Northwest takes the fifth spot.
Continental, in Houston, Texas, is the No. 4 carrier.

A Delta merger with either Northwest or United would create the
largest passenger airline in the world.

Some analysts worry a Delta merger would face antitrust hurdles,
Bankruptcylaw360 says.

The Journal says Delta's intent was to pursue tandem negotiations
with Northwest and United on a compressed timeline, get a deal
inked by mid-February and quickly begin the process for winning
antitrust approval.  Executives at the airlines believe any
mergers are more likely to pass regulatory muster during the
waning days of the Bush administration, the Journal relates.

A United-Continental deal will have to be done very near a
Northwest-Delta announcement, so the two potential combinations
would undergo regulatory scrutiny at the same time, the Journal
says citing a source familiar with the matter.  A different source
told the Journal United and Continental are poised to act quickly
once another airline merger is announced.

Northwest holds a "golden share" of preferred stock in Continental
that allows Northwest to block a merger of Continental with
another large carrier, WSJ notes.  But if Northwest agrees to
merge with Delta, Continental could redeem that stock for a total
of $100, even if the deal is never consummated, freeing
Continental to entertain other suitors, WSJ says.

Continental executives have repeatedly said they prefer to remain
independent, but would do what is best for the company if the
competitive landscape changes, WSJ notes.

Experts in the airline industry believe that a Northwest-Delta
merger is more likely as Delta's Anderson was previously CEO at
Northwest, and is already well acquainted with Northwest's
operations.

Bloomberg, citing an unnamed person familiar with Air France-KLM
Group's plans, has reported that Air France is encouraging a
merger between Delta and Northwest and may make a financial
investment to foster a tie-up.  A Delta-Northwest combination
would preserve the SkyTeam Alliance, a marketing group that
includes Delta, Northwest and United.

                         Other Issues

Other issues that will have to be taken up in a Delta-Northwest
combination include both carrier's labor groups.  The Air Line
Pilots Association branches at Delta and Northwest have signaled
that they could support a merger if they receive equity in the
combined airline and achieve a labor contract with improved terms,
WSJ says.

Analysts also said mergers could lead to higher fares in some
markets, at least in the long term, The New York Times state.
Congress could also oppose a combination due to possible job loss
and reduction in competition, Times relates.

                  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 $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.  (Northwest Bankruptcy News, Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000).

                        *     *     *

Moody's Investor Service placed Northwest Airlines Corp.'s long
term corporate family and probability of default ratings at 'B1'
in May 2007.  The ratings still hold to date with a stable
outlook.

                       About UAL Corp.

Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA)
-- http://www.united.com/-- is the holding company for United
Airlines, Inc.  United Airlines is the world's second largest
air carrier.  The airline flies to Brazil, Korea and Germany.

The company filed for chapter 11 protection on Dec. 9, 2002
(Bankr. N.D. Ill. Case No. 02-48191).  James H.M. Sprayregen,
Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and
Steven R. Kotarba, Esq., at Kirkland & Ellis, represented the
Debtors in their restructuring efforts.  Fruman Jacobson, Esq.,
at Sonnenschein Nath & Rosenthal LLP represented the Official
Committee of Unsecured Creditors before the Committee was
dissolved when the Debtors emerged from bankruptcy.  Judge
Wedoff confirmed the Debtors' Second Amended Plan on
Jan. 20, 2006.  The company emerged from bankruptcy protection
on Feb. 1, 2006.  (United Airlines Bankruptcy News, Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000).

                        *     *     *

Moody's Investor Service placed UAL Corp.'s long term corporate
family and probability ratings at 'B2' in January 2007.  The
ratings still hold to date with a stable outlook.

                    About Continental Airlines

Continental Airlines Inc. (NYSE: CAL) -- http://continental.com/
-- is the world's fifth largest airline.  Continental, together
with Continental Express and Continental Connection, has more than
2,900 daily departures throughout the Americas, Europe and Asia,
serving 144 domestic and 139 international destinations.  More
than 500 additional points are served via SkyTeam alliance
airlines.  With more than 45,000 employees, Continental has hubs
serving New York, Houston, Cleveland and Guam, and together with
Continental Express, carries approximately 69 million passengers
per year.

                          *     *     *

As reported in the Troubled Company Reporter on Dec. 27, 2007,
Fitch Ratings affirmed Continental Airlines 'B-' issuer default
rating with a stable outlook.

                        About Delta Air

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

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

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

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

                        *     *     *

As reported in the Troubled Company Reporter on Jan. 17, 2008,
Standard and Poor's said that media reports that Delta Air Lines
Inc. (B/Positive/--) entered into merger talks with UAL Corp.
(B/Stable/--) and Northwest Airlines Corp. (B+/Stable/--) will
have no effect on the ratings or outlook on Delta, but that
confirmed merger negotiations would result in S&P's placing
ratings of Delta and other airlines involved on CreditWatch, most
likely with developing or negative implications.


INSTITUTOS MEDICOS: Files for Reorganization in Court
-----------------------------------------------------
Institutos Medicos S.A. has requested for reorganization approval
after failing to pay its liabilities.

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

The case is pending in the National Commercial Court of First
Instance in Buenos Aires.

The debtor can be reached at:

          Institutos Medicos S.A.
          Avenida Roque Saenz Pena 1219
          Buenos Aires, Argentina


LANCI IMPRESORES: Files for Reorganization in Buenos Aires Court
----------------------------------------------------------------
Lanci Impresores SA has requested for reorganization approval
after failing to pay its liabilities.

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

The case is pending in the National Commercial Court of First
Instance No. 5 in Buenos Aires.  Clerk No. 9 assists the court in
this case.

The debtor can be reached at:

          Lanci Impresores SA
          Mom 2862
          Buenos Aires, Argentina


NESTOR ONOFRE: Seeks Bankruptcy Approval from Buenos Aires Court
----------------------------------------------------------------
The National Commercial Court of First Instance No. 18 in Buenos
Aires is studying the merits of Nestor Onofre Rinaldi, Susana Elsa
Fabbro, Cynthia Lorena Rinaldi y Diego Rinaldi's request to enter
bankruptcy protection.

Nestor Onofre filed a "Quiebra Decretada" petition, after failing
to pay its debts since May 7, 2007.

The petition, once approved by the court, will transfer control of
the company's assets to a court-appointed trustee who will
supervise the liquidation proceedings.

Clerk No. 39 assists the court in this case.

The debtor can be reached at:

         Nestor Onofre Rinaldi, Susana Elsa Fabbro,
         Cynthia Lorena Rinaldi y Diego Rinaldi
         Gavilan 4212
         Buenos Aires, Argentina


* ARGENTINA: IMF Asks Statistics Agency to Clarify Calculations
---------------------------------------------------------------
Argentina's statistics agency, INDEC, is under the International
Monetary Fund's scrutiny, as the international organization seeks
clarification of some methodology changes the agency introduced
last year for calculating prices in sectors such as tourism,
health, private schools and foods, Serena Saitto of Dow Jones
Newswires reports.

Reports of data manipulation are hounding the agency, however, the
government has repeatedly denied doing so, Dow Jones relates.

An INDEC spokesman told Dow Jones that the agency had received an
e-mail from the Fund and that it is reviewing the questions laid
out in that mail.

An IMF spokesperson declined to comment on the matter, Dow Jones
says.

                           *     *     *

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 outlook for these ratings is
stable.



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

KNOLL INC: Reports US$20.7-Mln Net Income in Fourth Quarter 2007
----------------------------------------------------------------
Knoll Inc. announced results for its fourth quarter and year ended
Dec. 31, 2007.  Net sales were US$281.8 million for the quarter,
an increase of 3.2% from fourth quarter 2006.  Operating income
was US$39.5 million, or 14.0% of net sales, an increase of 11%
from the fourth quarter 2006, and net income was US$20.7 million,
an increase of 15% over the fourth quarter 2006.

For the full year, net sales were US$1.05 billion, an increase of
7.5% over full year 2006.  Operating income was US$142.2 million,
or 13.5% of net sales, an increase of 21.6% over full year 2006,
net income was US$71.4 million, an increase of 21.8% over full
year 2006.

"For the 3rd year in a row now Knoll has continued to expand our
industry leading operating margins, generate better than industry
top-line growth and deliver more than 20% EPS growth for our
shareholders," said Knoll Chief Executive Officer, Andrew Cogan.

"While we are aware that our industry faces headwinds as we head
into 2008, we are confident that the strength and diversity of our
growth initiatives, the fullness of our new product pipeline and
our cost discipline will allow us to continue to generate better
than industry top-line performance as we work to achieve our mid-
term 15% operating margin goals." Mr. Cogan added.

"I want to congratulate and thank our Associates and Dealers on
generating another year of industry leading performance.  They
have once again demonstrated that in the words of our founder
Florence Knoll 'Good design is good business.'" Mr. Cogan stated.

Mr. Cogan noted, "Net sales for the quarter were US$281.8 million,
an increase of US$8.8 million, or 3.2%, over fourth quarter 2006,
representing increased volume and price realization from
previously implemented price increases.  Our Specialty products
experienced the strongest growth during the quarter as they also
benefited from our fourth quarter acquisition of Edelman Leather."

Backlog of unfilled orders at Dec. 31, 2007, was US$190.7 million,
an increase of US$23million, or 13.7%, versus the prior year.

Gross profit for the fourth quarter 2007 was US$99 million, an
increase of US$9.9 million, or 11.1%, over the same period in
2006.  Gross margin increased from 32.6% in the fourth quarter of
2006 to 35.1% in spite of the significant appreciation of the
Canadian Dollar.  The increase from the fourth quarter of 2006
largely resulted from additional volume, better pricing, and
moderating inflation.  Improved factory performance and global
sourcing initiatives also contributed to the increase in gross
margin.

Operating expenses for the quarter were US$59.5 million, or 21.1%
of sales, compared to US$53.5 million, or 19.6% of sales, for
fourth quarter of 2006.  The increase in operating expenses during
the fourth quarter of 2007 was in large part due to the inclusion
of Edelman Leather and increased investment spending in marketing
and product development.

Operating income increased, as a percentage of sales, to 14% from
13% in the same period in the prior year.  Gross margin
improvements from a year ago contributed to this increase.

Net income for the fourth quarter 2007 was US$20.7 million as
compared to US$18 million for the same quarter in 2006. Interest
expense decreased US$0.9 million due to lower borrowing costs on
the company's credit facility.

For the year, net sales totaled US$1.05 billion an increase of
US$73.6 million, or 7.5%, from 2006 net sales of US$982.2 million.
The increase was attributable to additional revenues realized from
price increases as well as higher volumes across all the company's
product categories.  The specialty businesses followed by
International expansion and complimentary seating and storage
products experienced the strongest growth in the year.

Gross margins increased to 34.6% in 2007 compared to 32.5% in
2006.  Additional volume, better pricing, and moderating inflation
led to the increase.  Improved factory performance and global
sourcing initiatives also contributed to the increase.  The
increase in gross margin came in spite of the further appreciation
in the Canadian Dollar.

Operating expenses for 2007 were US$222.9 million, or 21.1% of
sales, compared to US$202.1 million, or 20.6% of sales, for 2006.
Increased investment spending on growth initiatives relating to
new products and international expansion drove the increase along
with increased incentive payments as a result of the higher sales
and profits.  The acquisition of Edelman Leather also impacted
operating expense levels.

The company generated 2007 net income of US$71.4 million compared
to US$58.6 million in 2006.  Net income in 2007 includes the
write-off of deferred financing fees totaling US$0.7 million after
tax as the company implemented the refinancing of its old credit
facility with a new US$500 million revolving credit facility on
June 29, 2007.

Other income/expense in 2007 included an approximate
US$4.2 million loss due to foreign currency translation and
US$1.2 million loss related to the write off of deferred financing
fees.  Other income/expense in 2006 included an approximate
US$563 thousand gain due to the foreign currency translation, a
US$703 thousand loss on interest rate derivatives, and
US$881 thousand gain in other miscellaneous income.

Annual cash generated from operations in 2007 was
US$102.2 million, compared to US$77.5 million the year before.
Capital expenditures in 2007 totaled US$16.3 million compared to
US$13.4 million for 2006.  Investing activities in 2007 also
included US$70.8 million for the acquisition of Edelman Leather.
In addition, the Company repurchased approximately 2.3 million
shares of its stock for US$48.1 million during the year.  Also
during the year the Company had net borrowings of US$18.2 million
primarily to finance the purchase of Edelman Leather and
repurchase shares.  The company also paid dividends of
US$21.7 million for the first three quarters of 2007, increasing
to US$0.12 per share in the fourth quarter of 2007.

Chief Financial Officer, Barry L. McCabe said, "During the quarter
we were able to close the acquisition of Edelman Leather, increase
our quarterly dividend and take advantage of our current stock
price by repurchasing 1.1 million shares for a total repurchase of
2.261 million shares for the year.  With our expanded bank
facility, lowered leverage ratio and reduced borrowing costs,
Knoll enters 2008 in the strongest financial position since our
2004 IPO and we are well positioned to take advantage of
opportunities to continue to reduce our shares outstanding.
Accordingly, we are pleased to announce the expansion of our share
repurchase program by US$50 million."

       Expanded US$50 million Stock Repurchase Program

On Feb. 4, 2008, the Knoll Board of Directors approved a US$50
million expansion of the company's previously announced stock
repurchase program.  The expanded repurchase program does not
require the purchase of any minimum number of shares, but sets a
limit on the total amount spent on repurchases.  Before this
expansion, the company had approximately US$17 million remaining
under its US$50 million stock repurchase program announced in
February 2006.  Purchases under the repurchase program may be made
from time to time in the open market, through privately negotiated
transactions, or otherwise, and will depend on market conditions
and applicable securities laws.

                   First Quarter 2008 Outlook

The company stated that it expects first quarter 2008 revenue to
be in the US$258 - US$265 million range, an increase of 4.1%-6.9%
from the first quarter of 2007.

The company added that on Feb. 4, 2008, its Board of Directors
declared a quarterly cash dividend of US$0.12 per share payable on
March 31, 2008, to stockholders of record on March 14, 2008.

                        About Knoll Inc.

Headquartered in East Greenville, Pennsylvania, Knoll Inc. (NYSE:
KNL) -- http://www.knoll.com/-- designs and manufactures
branded office furniture products and textiles, serves clients
worldwide.  It distributes its products through a network of more
than 300 dealerships and 100 showrooms and regional offices.  The
company has locations in Argentina, Australia, Bahamas, Cayman
Islands, China, Colombia, Denmark, Finland, Greece, Hong Kong,
India, Indonesia, Japan, Korea, Malaysia, Philippines, Poland,
Portugal and Singapore, among others.

                         *     *     *

Knoll Inc. carries Moody's Investors Service's B1 Corporate Family
Rating and the company's US$200 million senior secured revolver
and US$250 million senior secured term loan carry Moody's Ba2.
Moody's assigned an LGD2 rating to both loans, suggesting note
holders will experience a 27% loss in the event of a default.



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



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

SEA CONTAINERS: Reaches Pact with Pension Schemes Trustees
----------------------------------------------------------
Sea Containers Ltd. and its debtor-affiliates have reached an
agreement in principle with the trustees of the two main Sea
Containers Pension Schemes to agree on the amount of their claims
against the Sea Containers estate.

This is a critical and positive milestone in its efforts to emerge
from Chapter 11, the Debtors said.

Since the Chapter 11 negotiations first began in October 2006, the
board of directors and the officers of Sea Containers have been
focused on achieving a plan of reorganization that provides full
and fair settlement for all creditors.  The major creditors
involved are the 1983 and the 1990 pension funds which have almost
1500 members between them and the holders -- thought to be a
number of US hedge funds -- of the four outstanding bond
issues.

The agreement with the Trustees for the pension funds, which are
estimated to be in deficit by approximately US$200 million under
the s75 'buy out' basis prescribed by UK law, will allow the
Company and the trustees to avoid costly and protracted litigation
in multiple and potentially competing jurisdictions. The agreement
also creates an additional reserve of US$69 million for certain
potential pension scheme liabilities in respect of age-related
equalization changes.

In connection with this important agreement, Sea Containers has
withdrawn its appeal against the Financial Support Direction.  The
FSD, which sought to oblige Sea Containers Limited -- the ultimate
parent company -- to put in place additional financial support for
the pension funds, was handed down by the Determinations Panel of
the UK Pensions Regulator on 3 July 2007. Sea Containers considers
that the settlement will adequately address any FSD and that the
current legal proceedings would be of no further benefit.  Sea
Containers is therefore pleased to have reached a timely and
consensual settlement with the Trustees.

Sea Containers, alongside the Trustees, will be seeking approval
from the Regulator for the proposed settlement.  Both sides are
confident an approval will be granted in the near future.

The proposed settlement is also subject to the Delaware Bankruptcy
Court approval and may be objected to by other creditors of the
estate.

                        About Sea Containers

Based in Hamilton, Bermuda, Sea Containers Ltd. --
http://www.seacontainers.com/-- provides passenger and freight
transport and marine container leasing.  Registered in Bermuda,
the company has regional operating offices in London, Genoa, New
York, Rio de Janeiro, Sydney, and Singapore.  The company is
owned almost entirely by United States shareholders and its
primary listing is on the New York Stock Exchange (SCRA and
SCRB) since 1974.  On Oct. 3, the company's common shares and
senior notes were suspended from trading on the NYSE and NYSE
Arca after the company's failure to file its 2005 annual report
on Form 10-K and its quarterly reports on Form 10-Q during 2006
with the U.S. Securities and Exchange Commission.

Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland.  It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.

Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady,
Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at
Young, Conaway, Stargatt & Taylor, represent the Debtors in
their restructuring efforts.

The Official Committee of Unsecured Creditors and the Financial
Members Sub-Committee of the Official Committee of Unsecured
Creditors of Sea Containers Ltd. is represented by William H.
Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris,
Nichols, Arsht & Tunnell LLP.  Sea Containers Services, Ltd.'s
Official Committee of Unsecured Creditors is represented by
attorneys at Willkie Farr & Gallagher LLP.

In its schedules filed with the Court, Sea Containers disclosed
total assets of $62,400,718 and total liabilities of
$1,545,384,083.

The Court gave the Debtors until Feb. 20, 2008 to file a plan of
reorganization.


SECURITY CAPITAL: Moody's Cuts Insurance Strength Rating to 'A3'
----------------------------------------------------------------
Moody's Investors Service has downgraded to A3, from Aaa, the
insurance financial strength ratings of the operating subsidiaries
of Security Capital Assurance Ltd, including XL Capital Assurance
Inc., XL Capital Assurance Limited and XL Financial Assurance Ltd.
Moody's has also downgraded the debt ratings of the holding
company, Security Capital Assurance Ltd (senior debt to (P)Baa3
from (P)Aa3), and a related financing trust.  These rating actions
reflect Moody's assessment of SCA's weakened capitalization and
business profile resulting, in part, from its exposures to the US
residential mortgage market.  The rating outlook is negative.

The SCA units had already lost their key AAA grade at Fitch
Ratings, The Wall Street Journal says.  Standard & Poor's has
warned it may cut the AAA ratings of SCA, the Journal relates.

The Journal notes bond insurers play a key role in the financial
system, guaranteeing some $2.4 trillion in debt, the bulk of it
issued by municipalities that would otherwise have to pay higher
rates.  According to the Journal, the bond insurers, however,
strayed from that core business into writing protection on
collateralized debt obligations and other securities that have
since plunged in value.  Much of that protection was bought by
banks seeking to hedge exposure that could produce further losses
in the event of fresh downgrades, the Journal says.

             Impact on Ratings of Insured Obligations

As a result of this downgrade, the Moody's-rated securities that
are guaranteed or "wrapped" by XLCA, XLCA-UK and XLFA are also
downgraded to A3, except those securities with higher public
underlying ratings.

                    Overview of Rating Approach

As outlined in Moody's Rating Methodology for Financial
Guarantors, Moody's has evaluated SCA along five key rating
factors:

     1) franchise value and strategy,
     2) insurance portfolio characteristics,
     3) capital adequacy,
     4) profitability, and
     5) financial flexibility.

Of these factors, capital adequacy is given particular emphasis.
To estimate capital adequacy, Moody's has applied its traditional
portfolio risk model for determining stress losses on the non-
mortgage related portion of SCA's insured portfolio, and
alternative stress tests for the mortgage and mortgage-related CDO
exposure.  For mortgage-related exposures, stress losses were
estimated using assumptions consistent with a scenario where 2006
subprime first-lien mortgages realize an average of 21% cumulative
pool losses, with other vintages and products stressed
accordingly.  Stress-level losses for RMBS transactions were
assessed on a transaction-by-transaction basis, while loss
estimates for ABS CDOs were derived using a stochastic simulation
model which applied stress to specific underlying collateral
tranches within the CDOs.  Estimated tranche-level losses were
computed based on the structure of those tranches (e.g.,
attachment and detachment points) and estimates of their
performance relative to the average.

Losses estimated under the approach described above were present-
valued to reflect estimates of the payout pattern that would
emerge, based on the collateral type.  For ABS CDOs, consideration
was given to specific contractual features within associated CDS
contracts.  These factors resulted in aggregate present value
discounts to principal loss estimates of approximately 11% for
RMBS and 34% for ABS CDOs.  Non-mortgage risks are discounted
within the portfolio model based on estimates of payout patterns
as well.

In view of the expected correlation between the prospective
experience of SCA and its reinsurers, and given the recent
downgrade of affiliate XL Insurance Ltd (from Aa3 to A1) and
reviews for possible downgrade of RAM Reinsurance Company Ltd.
(Aa3) and BluePoint Re Limited (Aa3), Moody's has also, for
purposes of estimating capital adequacy, reduced the estimated
credit given for reinsurance in the stress case, to 50%, on
average across the portfolio.

In comparing estimated stress losses to claims paying resources
and associated rating levels, Moody's combines an estimated loss
distribution for mortgage risks with one for non-mortgage risks,
assuming a correlation between the two that ranges from 90% (for
Aaa) down to 30% (for Baa3).  Claims paying resources are then
compared to the indicated capital need, at the target benchmark
(1.3x required capital).

               Key Rating Factors: Capital Adequacy

Based on the risks in SCA's portfolio, as assessed by Moody's
according to the approach outlined above, capitalization required
to cover losses at the Aaa target level would exceed $6 billion.
This compares to Moody's estimate of SCA's claims paying resources
of $3.6 billion, which Moody's considers to be more consistent
with capitalization at the single A rating level.  Moody's further
noted that it estimates SCA's insured portfolio will incur
lifetime expected losses of approximately $1.2 billion in present
value terms.

SCA is currently pursuing several capital management initiatives
that, according to Moody's, if successfully executed could reduce
but would not likely eliminate the company's capital shortfall at
the Aaa rating level.  Moody's further commented that
capitalization, and the prospect for improvements in
capitalization, were considered in the context of the rating
agency's opinion about the guarantor's ongoing business and
financial profile, as summarized further below.

         Key Rating Factors: Business and Financial Profile

In Moody's opinion, SCA's significant exposure to mortgage-related
risk has had consequences for its business and financial profile
beyond the associated impact on capitalization, and affects
Moody's opinion about SCA's other key rating factors.  Moody's
believes that SCA is more weakly positioned than many of its peers
with respect to business franchise, prospective profitability and
financial flexibility.

With respect to underwriting and risk management, Moody's believes
that SCA's relatively significant exposure to the mortgage sector
is indicative of a risk posture somewhat greater than the peer
group overall.  The company's participation in super-senior
mezzanine tranches of ABS CDOs, in particular, contributed to this
view.  Going forward, Moody's believes SCA's strategic direction
could change meaningfully, with implications for the business
profile that are currently uncertain.

SCA's profitability is likely to remain depressed in the near to
intermediate term as losses on mortgage-related exposures are
incurred.  While Moody's expects the company will continue to earn
premiums on its in-force book for many years, as well as
investment income on its investment portfolio, Moody's believes
premium volume on new business production will likely diminish
significantly and operating expenses will become a greater drag on
earnings over time.

In terms of financial flexibility, SCA, like other financial
guarantors, benefits from its ability to pay claims over an
extended period of time, typically scheduled interest and
principal at maturity.  Moody's has also considered in its rating
review the potential for calls on liquidity at SCA in the context
of available resources, including the investment profile of the
operating insurance entities.  SCA's financial leverage profile is
likely to increase as incurred losses erode shareholders' equity.
Additional debt in the capital structure would further increase
leverage and place additional demands on the operating companies
to service fixed charges.  Here, Moody's believes that holding
company liquidity remains strong due to the firm's ability to
upstream dividends from Bermuda-domiciled XLFA, which has
substantial dividend capacity under Bermuda insurance regulations.
In Moody's opinion, SCA's access to capital is weak currently,
given the company's depressed equity valuation and wide CDS
spreads.

        Consideration of Ongoing Capital Management Efforts

Moody's is aware of a number of capital initiatives currently
being pursued by SCA, including seeking to generate capital relief
through reinsurance arrangements and restructuring certain
mortgage-related exposures, although the company has announced
that it will not raise new capital in the current market
environment.  Moody's stated that certain of these pending
initiatives, if completed, would reduce the level of uncertainty
surrounding portfolio loss estimates.  However, Moody's believes
that SCA's current business position and moderate franchise
strength are consistent with operating company insurance financial
strength ratings in the single-A range.

                    Rating Outlook: Negative

The negative outlook on SCA's ratings reflects continued
uncertainty regarding both the ultimate performance of its
mortgage and mortgage-related CDO exposures, as well as the future
strategic direction of the firm and the potential for change in
the competitive dynamics of the financial guaranty market.
Moody's will continue to evaluate developments at the company and
communicate any changes in its opinion as appropriate.

                    List of Rating Actions

These ratings have been downgraded:

  -- XL Capital Assurance Inc.: insurance financial strength to A3
     from Aaa;

  -- XL Capital Assurance (U.K.) Limited: insurance financial
     strength to A3 from Aaa;

  -- XL Financial Assurance Ltd: insurance financial strength to
     A3 from Aaa;

  -- Security Capital Assurance Ltd: provisional rating on senior
     debt to (P)Baa3 from (P)Aa3, provisional rating on
     subordinated debt to (P)Ba1 from (P)A1 and preference shares
     to Ba2 from A2; and

  -- Twin Reefs Pass-Through Trust: contingent capital securities
     to Baa2 from Aa2.

                About Security Capital Assurance

Security Capital Assurance Ltd is a Bermuda-domiciled holding
company whose primary operating subsidiaries, XL Capital Assurance
Inc. and XL Financial Assurance Ltd, provide credit enhancement
and protection products to the public finance and structured
finance markets throughout the United States and internationally.
For the nine months ended Sept. 30, 2007, SCA reported a net loss
available to common shareholders of $27 million.  As of Sept. 30,
2007, SCA had shareholders' equity of approximately $1.6 billion.



===========
B R A Z I L
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BANCO ABC: Will Boost Lending by 65% in 2008
--------------------------------------------
Banco ABC Brasil's investor relations officer Sergio Lulia Jacob
said in a conference call that it will increase lending by 65% in
2008, from 2007, Business News Americas reports.

BNamericas relates that Banco ABC's lending rose 71.5% to BRL4.99
billion in 2007, compared to 2006.

According to BNamericas, Banco ABC said in the conference call
that middle market loans will grow 120%.

Mr. Jacob told BNamericas that Banco ABC will launch offices in
Rio de Janeiro and Curitiba in the first six months of 2008, half
of the year and in Porte Alegre and a city in the northeast in the
second half, boosting loans to middle market companies with
revenues of up to BRL250 million per year.

BNamericas says that Banco ABC has three offices in the greater
Sao Paulo, one in Campinas, Sao Paulo, and one in Belo Horizonte,
Minas Gerais.

Banco ABC Brasil, controlled by Arab Banking Corporation and
with a branch on the Cayman Islands, is a multiple bank endowed
to operate with commercial, investment, financial, housing loan
and exchange portfolios.  Our supporting structure includes a
securities dealer and an administration and services company.
Due to their synergetic operations, these companies can cover a
broad spectrum of financial intermediation activities focused on
Brazilian interests, adding to the financial services offered
worldwide by the controlling company.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 26, 2007, Fitch Ratings affirmed Banco ABC Brasil S.A.'s
BB+ long-term local and foreign currency issuer default ratings,
and B short-term rating.  Fitch says the outlook is stable.


BANCO CRUZEIRO: 6.26& Non-Voting Capital in Bank Belongs to BBM
---------------------------------------------------------------
Brazilian investment bank BBM said in a filing with securities
regulator Comissao de Valores Mobiliarios that it now holds 6.26%
of non-voting capital in Banco Cruzeiro do Sul through the
acquisition of 2.84 million preferred shares.

Business News Americas relates that Banco Cruzeiro conducted an
initial public offering on the Sao Paulo stock exchange Bovespa in
June 2007.  It sold about 36.1 million preferred shares for
BRL560 million.

Headquartered in Sao Paulo, Brazil, Banco Cruzeiro do Sul
(Bovespa - CZRS4), a private-sector multiple bank with
operations in the consumer segment, through paycheck-deductible
loans to public employees and social security beneficiaries, and
in the corporate segment, offering middle- market companies
short-term loans usually backed by receivables.  The bank's core
business is lending to civil servants, with payments
automatically deducted from payrolls.

                         *     *     *

On Sept. 10, 2007, Moody's assiged a Ba2 foreign currency deposit
rating for Banco Cruzeiro do Sul.


CONTINENTAL AIR: WSJ Says United Merger Talks "Have Grown Serious"
------------------------------------------------------------------
United Air Lines could likely end up marrying Continental Airlines
in the event of a merger, instead of with Delta Air Lines, various
report say.  According to The Wall Street Journal, exploratory
merger talks between United and Continental have grown serious.

Moreover, the reports also note that merger talks between Delta
Air and Northwest Airlines Corp. have intensified that could lead
to an agreement being announced in the next two weeks.  However,
key details of the Delta-Northwest deal have yet to be hammered
out and negotiations could still fall apart, according to the Wall
Street Journal, citing people familiar with the talks.

As reported in the Troubled Company Reporter on Jan. 22, 2008,
Mr. Anderson obtained approval from Delta's board of directors on
Jan. 11, 2007, to engage in formal merger talks with both
Northwest and United.

WSJ, citing people briefed on the matter, says Delta and United
have continued exploratory talks over the past month.

Pardus Capital Management, a New York-based hedge fund, and major
stakeholder in both United and Delta, had urged both carriers to
consolidate, to save money and counter escalating jet-fuel prices
which rose by around 53% last year.

Delta, the No. 3 U.S. carrier in terms of passenger traffic, has a
market value of over $4,100,000,000 -- higher than UAL's
$3,800,000,000, and Northwest's $3,700,000,000.  United is the
second-largest U.S. carrier, while Northwest takes the fifth spot.
Continental, in Houston, Texas, is the No. 4 carrier.

A Delta merger with either Northwest or United would create the
largest passenger airline in the world.

                    Delta-Northwest Merger

Reports note the potential dealbreaker in a Delta-Northwest
combination was the structure of the new company's management,
specifically Northwest CEO Doug Steenland and his management
team's role in the new company.  The Journal's source says those
issues were overcome earlier this week.

When companies merge, it's not uncommon for the chief executives
to divide the leadership roles, with one taking the CEO post and
the other becoming chairman, according to TheStreet.com.  In the
case of Delta and Northwest, the situation is complicated by the
role of Daniel Carp, who became chairman of Delta when the carrier
emerged from bankruptcy in May 2007, TheStreet.com says.

Since Mr. Carp was brought in to enhance Delta's position, there
is a feeling that he should remain because of the progress the
company has made, TheStreet.com says, citing a source.
TheStreet.com's source says Mr. Steenland has apparently accepted
the idea that Mr. Carp and Delta CEO Richard Anderson will retain
their current posts in a new company.

Mr. Anderson, a former Northwest Airlines chief executive, assumed
the Delta CEO post from Gerald Grinstein in August.  That decision
to hire Mr. Anderson "raised new questions about Delta's future
strategy", WSJ reported at that time.

Mr. Anderson's appointment raises speculations that with an
outsider at the helm, Delta may reverse its "go it alone" strategy
and pursue a consolidation with Northwest, United Air Lines or
Continental Airlines, Business Week had said.

At the time of its bankruptcy, Delta and its unsecured creditors
committee fended off a $8,000,000,000 to $10,000,000,000
hostile takeover bid from US Airways Group, Inc.   Delta said it
was better off as a stand-alone carrier.

In January 2007, about two months since US Airways launched its
hostile bid, Delta and NWA were reported to have held discussions
about a potential merger.  While both companies denied the
reports, Mr. Grinstein subsequently admitted to sharing
information with Northwest.  "At the behest of our creditors'
committee we recently retained an investment banker to obtain
information from Northwest, a far cry from negotiating for a
merger with them," Mr. Grinstein told members of the Delta Board
Council, according to Reuters.

Delta did not discount any possibility of a merger post-
bankruptcy.  According to a prior WSJ report, the Creditors
Committee conditioned its support of Delta's stand-alone Chapter
11 plan of reorganization to a number of concessions, including
the appointment of a new board that favors consolidation as a
strategic opotion.

In October, Mr. Anderson said he saw "obvious benefits" for
Delta's employees and shareholders in Delta's merging with another
carrier, Meg Marco at The Star Tribune reported.  Although Mr.
Anderson did not name a potential merger target for Delta at that
time, analysts have argued that Northwest would make a good
partner because the carriers' routes complement each other, Ms.
Marco said.

As proposed, the Delta-Northwest deal would be a stock-for-stock
transaction, done "at market," meaning at roughly where the two
stocks are trading, with little or no premium for either side, WSJ
says.   The Journal adds that the dynamic has made non-economic
issues the center of the deal negotiations.

                      Compressed Timeline

The Journal says Delta's intent was to pursue tandem negotiations
with Northwest and United on a compressed timeline, get a deal
inked by mid-February and quickly begin the process for winning
antitrust approval.  Executives at the airlines believe any
mergers are more likely to pass regulatory muster during the
waning days of the Bush administration, the Journal relates.

A United-Continental deal will have to be done very near a
Northwest-Delta announcement, so the two potential combinations
would undergo regulatory scrutiny at the same time, the Journal
says citing a source familiar with the matter.  A different source
told the Journal United and Continental are poised to act quickly
once another airline merger is announced.

Northwest holds a "golden share" of preferred stock in Continental
that allows Northwest to block a merger of Continental with
another large carrier, WSJ notes.  But if Northwest agrees to
merge with Delta, Continental could redeem that stock for a total
of $100, even if the deal is never consummated, freeing
Continental to entertain other suitors, WSJ says.

Continental executives have repeatedly said they prefer to remain
independent, but would do what is best for the company if the
competitive landscape changes, WSJ notes.

Experts in the airline industry believe that a Northwest-Delta
merger is more likely as Delta's Anderson was previously CEO at
Northwest, and is already well acquainted with Northwest's
operations.

Bloomberg, citing an unnamed person familiar with Air France-KLM
Group's plans, has reported that Air France is encouraging a
merger between Delta and Northwest and may make a financial
investment to foster a tie-up.  A Delta-Northwest combination
would preserve the SkyTeam Alliance, a marketing group that
includes Delta, Northwest and United.

                         Other Issues

Other issues that will have to be taken up in a Delta-Northwest
combination include both carriers' labor groups.  The Air Line
Pilots Association branches at Delta and Northwest have signaled
that they could support a merger if they receive equity in the
combined airline and achieve a labor contract with improved terms,
WSJ says.

Some analysts worry a Delta merger would face antitrust hurdles,
Bankruptcylaw360 says.

Analysts also said mergers could lead to higher fares in some
markets, at least in the long term, The New York Times state.
Congress could also oppose a combination due to possible job loss
and reduction in competition, Times relates.

                       About UAL Corp.

Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA)
-- http://www.united.com/-- is the holding company for United
Airlines, Inc.  United Airlines is the world's second largest
air carrier.  The airline flies to Brazil, Korea and Germany.

The company filed for chapter 11 protection on Dec. 9, 2002
(Bankr. N.D. Ill. Case No. 02-48191).  James H.M. Sprayregen,
Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and
Steven R. Kotarba, Esq., at Kirkland & Ellis, represented the
Debtors in their restructuring efforts.  Fruman Jacobson, Esq.,
at Sonnenschein Nath & Rosenthal LLP represented the Official
Committee of Unsecured Creditors before the Committee was
dissolved when the Debtors emerged from bankruptcy.  Judge
Wedoff confirmed the Debtors' Second Amended Plan on
Jan. 20, 2006.  The company emerged from bankruptcy protection
on Feb. 1, 2006.  (United Airlines Bankruptcy News, Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/
or 215/945-7000).

                        *     *     *

Moody's Investor Service placed UAL Corp.'s long term corporate
family and probability ratings at 'B2' in January 2007.  The
ratings still hold to date with a stable outlook.

                        About Delta Air

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

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

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

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

                        *     *     *

As reported in the Troubled Company Reporter on Jan. 17, 2008,
Standard and Poor's said that media reports that Delta Air Lines
Inc. (B/Positive/--) entered into merger talks with UAL Corp.
(B/Stable/--) and Northwest Airlines Corp. (B+/Stable/--) will
have no effect on the ratings or outlook on Delta, but that
confirmed merger negotiations would result in S&P's placing
ratings of Delta and other airlines involved on CreditWatch, most
likely with developing or negative implications.

                  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 $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.

(Northwest Bankruptcy News; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).

                        *     *     *

Moody's Investor Service placed Northwest Airlines Corp.'s long
term corporate family and probability of default ratings at 'B1'
in May 2007.  The ratings still hold to date with a stable
outlook.

                    About Continental Airlines

Continental Airlines Inc. (NYSE: CAL) -- http://continental.com/
-- is the world's fifth largest airline.  Continental, together
with Continental Express and Continental Connection, has more than
2,900 daily departures throughout the Americas, Europe and Asia,
serving 144 domestic and 139 international destinations.  More
than 500 additional points are served via SkyTeam alliance
airlines.  With more than 45,000 employees, Continental has hubs
serving New York, Houston, Cleveland and Guam, and together with
Continental Express, carries approximately 69 million passengers
per year.

                          *     *     *

As reported in the Troubled Company Reporter on Dec. 27, 2007,
Fitch Ratings affirmed Continental Airlines 'B-' issuer default
rating with a stable outlook.


COREL CORP: Fourth Quarter 2007 GAAP Net Income is US$3.3 Million
-----------------------------------------------------------------
Corel Corporation reported financial results for its fourth
quarter and year ended Nov. 30, 2007.  Revenues in the fourth
quarter of fiscal 2007 were US$72.4 million, an increase of 53
percent over revenues of US$47.4 million in the fourth quarter
fiscal 2006.  Fourth quarter 2007 revenue includes organic revenue
growth of 8 percent, which excludes revenue from products acquired
from InterVideo and Ulead.  GAAP net income in the fourth quarter
of fiscal 2007 was US$3.3 million compared to GAAP net income of
US$9.4 million in the fourth quarter of fiscal 2006.

Non-GAAP adjusted net income for the fourth quarter fiscal 2007
was US$13.4 million compared to non-GAAP adjusted net income for
the fourth quarter of fiscal 2006 of US$13.1 million.  Non-GAAP
adjusted EBITDA in the fourth quarter of 2007 was US$19.9 million,
an increase of 35 percent over US$14.7 million in the fourth
quarter of 2006.

"Corel closed 2007 with a very strong fourth quarter driven by
solid execution across our diverse mix of products, channels and
geographies," said  Corel Corporation Chief Executive Officer,
David Dobson.  "We continued to execute well on our key strategies
in 2007 by delivering strong organic growth while successfully
completing the integration of InterVideo and Ulead.  The
fundamental strength of the Corel business model is the ability to
successfully integrate new products and teams while maintaining a
sharp focus on profitably growing existing businesses."

"Looking at the business over the past three years, I am very
pleased with how we have re-positioned Corel into product and
market segments that have better revenue growth and profit
potential.  As we enter 2008, we stand well-positioned to continue
building on the foundation of our Graphics and Productivity
products while leveraging our extensive Digital Media portfolio to
pursue new growth opportunities." Mr. Dobson continued.

Revenues for the year ended Nov. 30, 2007, were US$250.5 million,
an increase of 41 percent over revenues of US$177.2 million for
the year ended Nov. 30, 2006.  GAAP net loss for the year ended
Nov. 30, 2007, was US$13.1 million compared to a GAAP net income
of US$9.3 million for the year ended Nov. 30, 2006.

Non-GAAP adjusted net income for the year ended Nov. 30, 2007, was
US$34.0 million compared to non-GAAP adjusted net income for the
year ended Nov. 30, 2006, of US$37.6 million.  Non-GAAP adjusted
EBITDA for the year ended Nov. 30, 2007 was US$57.3 million,
compared to US$55.2 million for the year ended
Nov. 30, 2006.

                 First Quarter Fiscal 2008 Guidance

Corel provided guidance for the first quarter ending
Feb. 29, 2008.  The company currently expects:

   -- Revenue in the range of US$61 million to US$63 million.

   -- GAAP net loss in the range of US$(1.5) million to US$0.0
      million and non-GAAP adjusted net income in the range of
      US$6.5 million to US$8.0 million.

Resulting guidance for the year ending Nov. 30, 2008 is:

   -- Revenue in the range of US$258 million to US$273 million.

   -- GAAP net income of US$9.3 million to US$14.8 million and
      non-GAAP adjusted net income of US$40.5 million to US$46.0
      million.

                        About Corel Corp.

Ottawa, Ontario-based Corel Corporation (NASDAQ: CREL) (TSX: CRE)
-- http://www.corel.com/-- is a packaged software company   with
an estimated installed base of over 40 million users.  The company
provides productivity, graphics and digital imaging software.  Its
products are sold in over 75 countries through a
scalable distribution platform comprised of original equipment
manufacturers, Corel's international websites, and a global
network of resellers and retailers.  The company's product
portfolio features CorelDRAW(R) Graphics Suite, Corel(R)
WordPerfect(R) Office, WinZip(R), Corel(R) Paint Shop(R) Pro, and
Corel Painter(TM).

The company has operations in Germany, Italy, the United Kingdom,
Australia, Japan, Korea, Brazil, and Mexico, among others.

                          *     *     *

As reported Troubled Company Reporter-Latin America on Nov. 15,
2007, Standard & Poor's Ratings Services revised its outlook on
Corel Corp. to stable from positive.  At the same time, S&P
affirmed the ratings, including the 'B' long-term corporate credit
rating, on the company.


CROWN HOLDINGS: S&P Shifts to Pos. Outlook; Holds BB- Debt Rating
-----------------------------------------------------------------
Standard & Poor's Ratings Services has revised its outlook on
Crown Holdings Inc. to positive from stable and affirmed the 'BB-'
corporate credit and other existing ratings.  The outlook revision
reflects S&P's expectations that earnings growth and free cash
generation could support strengthening of the company's financial
profile to levels appropriate for a 'BB' rating in the next couple
of years.  The key ratio of funds from operations to total debt is
expected to approach 20% by 2009 from the midteens percent area at
Dec. 31, 2007.

"We could raise the ratings if Crown continues to prioritize its
free cash flows for debt reduction while maintaining a limited
allocation for share repurchases, and asbestos-related liability
trends remain reasonable," said S&P's credit analyst Liley Mehta.

At Dec. 31, 2007, Crown Holdings had total adjusted debt
outstanding of about US$4.3 billion.

The ratings reflect the company's satisfactory business risk
profile, characterized by market leadership, global operations,
and relative earnings stability.  Nevertheless, the financial
profile remains aggressive, and the company continues to face
risks associated with asbestos litigation.

Based in Philadelphia, Pennsylvania, Crown Holdings Inc. (NYSE:
CCK) -- http://www.crowncork.com/-- through its affiliated
companies, supplies packaging products to consumer marketing
companies around the world.  In Latin America, the company has
operations in Mexico and Brazil.  The company also maintains
operations in the United Kingdom , France, Canada, and the Middle
East.  In the Asia-Pacific region, the company has an office in
Singapore.  Crown Holdings, Inc., through its subsidiaries, is a
leading supplier of packaging products to consumer marketing
companies around the world.


JAPAN AIRLINES: To Begin 17% Hike on Int'l. Air Fare by April 1
---------------------------------------------------------------
Japan Airlines Corp. disclosed Tuesday its plan to raise regular
airfare for international flights by 17% effective Apri 1, Kyodo
News says.  The move is necessitated by higher fuel costs.

The hike plan has been approved by the International Air Transport
Association, of which Japan Airlines is a member.

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.


QUAKER FABRIC: Can't File Plan Without Committee Consent
--------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware barred
furniture upholstery manufacturer Quaker Fabric Corp. from filing
a chapter 11 plan of liquidation absent consent from the official
committee of unsecured creditors appointed in its case.

Moreover, the Court rejected the Debtors' request for an April
extension of their exclusive plan filing period.  The Court
settled for a 66-day extension, giving the Debtors until
Feb. 18, 2008, to propose a bankruptcy plan.  The Debtors were
given until April 18 to solicit plan votes.

As reported in the Troubled Company Reporter on Dec. 17, Quaker
Fabric and its debtor-affiliates asked the Court to extend their
exclusive periods to:

   a) file a chapter 11 plan until April 14, 2008; and

   b) solicit acceptances of that plan until June 11, 2008.

The Debtors argued that they have been in chapter 11 for just over
three months and have only recently obtained approval
from the Court to secure DIP financing from their prepetition
secured lenders.  In addition, the Debtors pointed out they have
devoted substantial time and resources in effectuating the sale of
their assets which resulted in the sale of the their Bleachery
Pond and the Tupelo Lee Industrial Park properties to separate
buyers in September 2007.

The Debtors said their cases are large and complex and they need
more time to focus on the formulation, filing and solicitation of
a plan of liquidation that will be accepted by their creditors and
approved by the Court.  The Debtors also pointed to the progress
they have made in the collection of their receivables and are not
seeking an extension to pressure creditors.

                       About Quaker Fabric

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

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

The company and its affiliate, Quaker Fabric Corporation of Fall
River, filed for chapter 11 protection on Aug. 16, 2007 (Bankr. D.
Del. Case No. 07-11146).  John D. Sigel, Esq. at Wilmer Cutler
Pickering Hale and Dorr LLP and Joel A. Waite, Esq. at Young
Conaway Stargatt & Taylor LLP are co-counsels to the Debtors.
Epiq Bankruptcy Solutions is the Debtors' claims agent.  The
Official Committee of Unsecured Creditors has selected Shumaker,
Loop & Kendrick, LLP, as its bankruptcy counsel and Benesch,
Friedlander, Coplan & Aronoff, LLP, as co-counsel.

The Debtors' schedules reflect total assets of US$41,375,191 and
total liabilities of US$54,435,354.


QUAKER FABRIC: Gets Go Signal to Sell Brazilian Unit for US$100K
----------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware permitted
Quaker Fabric Corp. to sell its Brazilian warehouse subsidiary
Quaker Textil do Brasil Ltda to American Decorative Fabric, LLC
for US$100,000.

The subsidiary had been a warehouse and sales office.

The Debtors said operations at Quaker Brazil stopped after the
Debtors consummated a sale of substantially all of their assets in
September 2007.

The Debtors initially opted to wind up Quaker Brazil's operations,
however, Brazilian requirements for winding up a company are
expensive.  The Debtors said the costs of "dormancy" under
Brazilian law will likely consume the remaining funds of Quaker
Brazil.

As part of the sale, the buyer required Quaker Fabric Corporation
of Fall River to waive a US$797,267 intercompany receivable owing
to it from Quaker Brazil.  The Debtors said they do not believe
they would have recovered the receivable under any realistic
circumstances.

The unit is sold on an "as is, where is" basis.

                       About Quaker Fabric

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

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

The company and its affiliate, Quaker Fabric Corporation of Fall
River, filed for chapter 11 protection on Aug. 16, 2007 (Bankr. D.
Del. Case No. 07-11146).  John D. Sigel, Esq. at Wilmer Cutler
Pickering Hale and Dorr LLP and Joel A. Waite, Esq. at Young
Conaway Stargatt & Taylor LLP are co-counsels to the Debtors.
Epiq Bankruptcy Solutions is the Debtors' claims agent.  The
Official Committee of Unsecured Creditors has selected Shumaker,
Loop & Kendrick, LLP, as its bankruptcy counsel and Benesch,
Friedlander, Coplan & Aronoff, LLP, as co-counsel.

The Debtors' schedules reflect total assets of US$41,375,191 and
total liabilities of US$54,435,354.


SOLUTIA INC: Compels Banking Group to Honor $2 Bil. Exit Financing
------------------------------------------------------------------
Solutia Inc. and its debtor-affiliates filed a complaint before
the U.S. Bankruptcy Court for the Southern District of New York
against the three banks that had executed a firm commitment to
fund a $2 billion exit financing package for Solutia, but to date
have refused to meet this commitment.

The banks are Citigroup Global Markets Inc., Goldman Sachs Credit
Partners L.P., and Deutsche Bank Securities Inc.  Solutia is
seeking a court order requiring the banks to meet their commitment
and fund Solutia's exit from bankruptcy.

The complaint also asserts that the banks should be stopped from
invoking the clause they claim relieves them of their obligation
due to their improper conduct and misrepresentations to the
company, and further claims that the banks fraudulently induced
Solutia to enter into the initial engagement by promising that
the financing was firmly committed.  Solutia and the banks have
agreed that Solutia's claim to require immediate funding of the
$2 billion package should be heard by the Court on an expedited
basis, with the trial to conclude by the end of February -- prior
to the expiration of the banks' commitment.

"This is not a 'best efforts' agreement," said Jeffry N. Quinn,
chairman, president and CEO of Solutia Inc.  "Solutia agreed to
pay the banks an enhanced fee in exchange for their firm
commitment to fund the full $2 billion exit financing facility --
regardless of the results of the syndication process.  We are
extremely disappointed by their refusal to meet this commitment
and have no choice but to pursue all of our legal remedies."

On Oct. 25, 2007 , the banks executed a firm commitment to fund a
$2 billion exit financing package for Solutia.  These substantial,
custom credit facilities and arrangements were specifically
tailored to facilitate Solutia's prompt emergence from Chapter 11.
On November 20, 2007 , the bankruptcy court approved the exit
financing package.  Nine days later, in reliance on the banks'
firm lending commitment, the court found the plan of
reorganization to be feasible and confirmed the plan.  However, in
late January -- shortly before the anticipated closing of the exit
facility and Solutia's long-awaited emergence from Chapter 11 --
the banks notified Solutia that they were refusing to provide the
funding, citing a so-called "market MAC" provision in their
commitment letter and asserting that there has been a change in
the markets since entering into the commitment.

"It is a well-documented fact that the ongoing conditions in the
credit markets began in the summer of 2007," said Quinn.  "Well
before the banks committed to Solutia's exit financing, they
stated in public filings and through professional advice to
Solutia that the credit markets were in disarray, and that the
credit crisis would continue for months to come.  Despite their
concerns and negative outlook, the banks entered into a firm
commitment to provide Solutia with this exit financing.  The
willingness of these banks to offer committed financing that was
not subject to a successful syndication was a major factor in
deciding to award them this business."

Quinn added, "Solutia is ready to emerge from Chapter 11.  We have
successfully repositioned our company, we have confirmed a plan of
reorganization that brings significant value to our constituents,
and our businesses are performing well.  We now look to the banks
to meet their commitment."

                     The Adversary Proceeding

Solutia filed Adversary Proceeding No. 08-01057 against the
Lenders, seeking:

     * a final judgment ordering the Commitment Parties to close
       on the Exit Financing in accordance with the terms of the
       Commitment Letter;

     * in the alternative, a judgment directing the Commitment
       Parties to pay compensatory and punitive damages in an
       amount to be determined at trial, but in no event less
       than $2,250,000; and

     * payment and compensation of Solutia costs and attorney's
       fees.

Richard I. Werder, Jr., Esq., at Quinn Emanuel Urquhart Oliver &
Hedges, LLP, in New York, as the Debtors' proposed special
counsel, reiterates that Solutia specifically bargained for a
"firm commitment" from the Commitment Parties whereby the three
lenders expressly agreed to fund the Exit Financing "even if they
could not syndicate the loans."

"The credit markets were in such a state of disarray since the
summer, as everybody knows, and that's specifically why Solutia
required a firm commitment," Susheel Kirpalani, a member of Quinn
Emanuel, said in an interview, according to The Associated Press.

"If for some reason they would seek to wiggle out of their
commitment, the damages would be very, very large," Mr. Kirpalani
said.  "We never expected to be litigating with our exit
lenders," he added.

According to the Complaint, the Lenders' reliance on the Market
MAC provision in the Commitment Letter, which they downplayed
from the outset, is "utterly without basis in the midst of a
tumultuous market that was not only foreseeable, but had long
existed when they signed on to the firm commitment."

The Lenders should be held accountable for their fraudulent
conduct -- which impacts Solutia, its employees, its 20,000
retirees, its creditors and other parties-in-interest -- by
paying compensatory and punitive damages to Solutia, Mr. Werder
asserts.

Mr. Werder relates that the Commitment Parties attended Court
hearings to approve both the Commitment Letter and the Plan, but
never once suggested that the financing might not close.  He
relates that shortly after Plan confirmation, the banks told
Solutia that syndicating in January would be better for the
company than syndicating the financing earlier -- that it could
provide "only upside."  However, the Commitment Parties have
changed their approach, acting as if they never said or did those
things, he tells the Court.

As previously disclosed in its Feb. 1, 2008 filing with the U.S.
Securities and Exchange Commission, Solutia gave the Lenders a
formal demand on January 29 to fund the new loan on February 6.
The next day, the Lenders gave notice they wouldn't, Solutia said
in the SEC filing.

The Lenders' refusal to proceed to closing is a direct and
willful breach of their obligations under the Commitment Letter,
Mr. Werder maintains.

Without the Exit Financing, Solutia's confirmed Plan and its
global settlement with Monsanto Company may not be consummated,
and all of the key stakeholders in Solutia's bankruptcy case,
including noteholders, trade creditors, shareholders, and 20,000
retirees will have contemplated distributions delayed further and
threatened altogether, Mr. Werder states.

Mr. Werder adds that the commitment made by certain creditors to
backstop Solutia's $250,000,000 new equity rights offering
expires on February 28, 2008, if Solutia has not emerged from
bankruptcy by that deadline.

"Solutia not only stands to lose this valuable commitment, but
would be forced to return to creditors funds deposited pursuant
to the equity rights offering," Mr. Werder tells the Court.

Moreover, Solutia's DIP Financing matures on March 31, 2008, and
must be repaid in full by that time, Mr. Werder notes.

"Simply put, without the exit financing, the Debtors potentially
will be left to start from scratch on a bankruptcy plan that took
four years and myriad integrated compromises to achieve," Mr.
Werder avers.

                         Citigroup Reacts

Citigroup spokeswoman Danielle Romero-Apsilos said in a statement
that the bank thinks the lawsuit is "baseless," AP relates.

"We believe the suit is without merit and have complied with all
of our contractual obligations," Ms. Romero-Apsilos said in an e-
mail.

Officials at Goldman Sachs and Deutsche Bank declined to comment,
according to eFinancial News Ltd.

Moreover, several bankruptcy lawyers said they believe the
lawsuit marks the first time a company on its way out of
bankruptcy has sued to challenge a "market MAC" clause, AP says.

According to AP, at the time Solutia was negotiating the deal in
September 2007, a Citi director told Solutia's chief financial
officer that the market MAC clause was created in 1998 during a
time of turmoil in world financial markets, according to the
suit.  The clause went unused for years once the turmoil
subsided.  However, after the credit crunch last summer, Citi
revived it and inserted it into the Solutia loan contract.

Citi told Solutia, however, that the clause had never been
invoked.  As a result, the company, said, the bank left Solutia
with "the impression that the provision was nothing more than
Citi's recycled boilerplate," AP further relates.

Bloomberg News says that the Lenders evidently continue working
on a loan syndication with respect to the implementation of
Solutia's Plan of Reorganization, which was confirmed by the
Court on November 29, 2007.

KDP Investment Advisors Inc. reported that the $400,000,000 in
senior unsecured notes pursuant to the Plan are being offered
with a 12% interest rate and a 7% discount to yield 14%,
Bloomberg relates.

KDP also said that the $1,200,000,000 senior secured term loan is
being shopped with a 9% discount and a 3.5% interest rate above
the London interbank offered rate, according to Bloomberg.

In its operating report for the month ended Dec. 31, 2007, Solutia
disclosed a $21,000,000 operating loss and a $144,000,000 net
loss.  For calendar year 2007, the company's net loss was
$209,000,000 while the operating profit totaled $189,000,000.

                        About Solutia Inc.

Based in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ) --
http://www.solutia.com/-- and its subsidiaries, engage in the
manufacture and sale of chemical-based materials, which are used
in consumer and industrial applications worldwide.

The company and 15 debtor-affiliates filed for chapter 11
protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949).
When the Debtors filed for protection from their creditors, they
listed $2,854,000,000 in assets and $3,223,000,000 in debts.

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

On Feb. 14, 2006, the Debtors filed their Reorganization Plan &
Disclosure Statement.  On May 15, 2007, they filed an Amended
Reorganization Plan and on July 9, 2007, filed a 2nd Amended
Reorganization Plan.  The Bankruptcy Court approved the Debtors'
amended Disclosure Statement on Oct. 19, 2007.  On Oct. 22, 2007,
the Debtor re-filed a Consensual Plan & Disclosure Statement and
on Nov. 29, 2007, the Court confirmed the Debtors' Consensual
Plan.  (Solutia Bankruptcy News, Issue No. 117; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000).

                          *     *     *

As reported in the Troubled Company Reporter on Dec. 10, 2007,
Standard & Poor's Ratings Services assigned its 'B+' loan rating
to Solutia Inc.'s (D/--/--) proposed $1.2 billion senior secured
term loan and a '3' recovery rating, indicating the likelihood of
a meaningful (50%-70%) recovery of principal in the event of a
payment default.  The ratings are based on preliminary terms and
conditions.  S&P also assigned its 'B-' rating to the company's
proposed $400 million unsecured notes.

Standard & Poor's expects to assign its 'B+' corporate credit
rating to Solutia if the company and its subsidiaries emerge from
Chapter 11 bankruptcy proceedings in early 2008 as planned.  S&P
expect the outlook to be stable.


UAL CORP: Resells Previously Issued 4.50% Senior Notes Due 2021
---------------------------------------------------------------
UAL Corp. supplemented the prospectus dated April 23, 2007,
relating to the resale by selling security holders of up to
US$726,000,000 aggregate principal amount of 4.50% Senior Limited-
Subordination Convertible Notes due 2021 and shares of UAL's
common stock issuable upon conversion of the notes or in payment
of accrued interest on the notes.

The Sixth Supplement to the Prospectus provides an updated list
of the Selling Securityholders and the total number of UAL shares
they beneficially own after the offering:

Selling          Principal Amount of  UAL Shares   Shares Owned
Securityholder   Notes Owned/Offered   Offered    After Offering
--------------   -------------------  ----------  --------------
Argent Classic            US$820,000      25,126               -
Convertible
Arbitrage Fund
Ltd.

Argentum Multi-               40,000       1,225               -
Strategy Fund
Ltd - Classic

Citigroup Global           5,000,000     153,209               -
Markets Inc.

Lehman Brothers, Inc.      2,000,000      61,283               -

The Drake Offshore         1,000,000      30,641               -
Master Fund, Ltd.

Xavex Convertible            140,000       4,289               -
Arbitrage 10 Fund

Total                   US$9,000,000     275,773               -

A full-text copy of the Sixth Supplement to the Prospectus is
available for free at http://ResearchArchives.com/t/s?27bc

                        About UAL Corp.

Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA)
-- http://www.united.com/-- is the holding company for United
Airlines, Inc.  United Airlines is the world's second largest
air carrier.  The airline flies to Brazil, Korea and Germany.

The company filed for chapter 11 protection on Dec. 9, 2002
(Bankr. N.D. Ill. Case No. 02-48191).  James H.M. Sprayregen,
Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and
Steven R. Kotarba, Esq., at Kirkland & Ellis, represented the
Debtors in their restructuring efforts.  Fruman Jacobson, Esq.,
at Sonnenschein Nath & Rosenthal LLP represented the Official
Committee of Unsecured Creditors before the Committee was
dissolved when the Debtors emerged from bankruptcy.  Judge
Wedoff confirmed the Debtors' Second Amended Plan on
Jan. 20, 2006.  The company emerged from bankruptcy protection
on Feb. 1, 2006.  (United Airlines Bankruptcy News, Issue No. 152
Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/
or 215/945-7000).

                          *     *     *

Fitch Ratings, on May 2007, affirmed the Issuer Default Ratings of
UAL Corp. and its principal operating subsidiary United Airlines
Inc. at B-.


UNITED AIR: WSJ Says Continental Merger Talks "Have Grown Serious"
------------------------------------------------------------------
United Air Lines could likely end up marrying Continental Airlines
in the event of a merger, instead of with Delta Air Lines, various
report say.  According to The Wall Street Journal, xploratory
merger talks between United and Continental have grown serious.

Moreover, the reports also note that merger talks between Delta
Air and Northwest Airlines Corp. have intensified that could lead
to an agreement being announced in the next two weeks.  However,
key details of the Delta-Northwest deal have yet to be hammered
out and negotiations could still fall apart, according to the Wall
Street Journal, citing people familiar with the talks.

As reported in the Troubled Company Reporter on Jan. 22, 2008,
Mr. Anderson obtained approval from Delta's board of directors on
Jan. 11, 2007, to engage in formal merger talks with both
Northwest and United.

WSJ, citing people briefed on the matter, says Delta and United
have continued exploratory talks over the past month.

Pardus Capital Management, a New York-based hedge fund, and major
stakeholder in both United and Delta, had urged both carriers to
consolidate, to save money and counter escalating jet-fuel prices
which rose by around 53% last year.

Delta, the No. 3 U.S. carrier in terms of passenger traffic, has a
market value of over $4,100,000,000 -- higher than UAL's
$3,800,000,000, and Northwest's $3,700,000,000.  United is the
second-largest U.S. carrier, while Northwest takes the fifth spot.
Continental, in Houston, Texas, is the No. 4 carrier.

A Delta merger with either Northwest or United would create the
largest passenger airline in the world.

                    Delta-Northwest Merger

Reports note the potential dealbreaker in a Delta-Northwest
combination was the structure of the new company's management,
specifically Northwest CEO Doug Steenland and his management
team's role in the new company.  The Journal's source says those
issues were overcome earlier this week.

When companies merge, it's not uncommon for the chief executives
to divide the leadership roles, with one taking the CEO post and
the other becoming chairman, according to TheStreet.com.  In the
case of Delta and Northwest, the situation is complicated by the
role of Daniel Carp, who became chairman of Delta when the carrier
emerged from bankruptcy in May 2007, TheStreet.com says.

Since Mr. Carp was brought in to enhance Delta's position, there
is a feeling that he should remain because of the progress the
company has made, TheStreet.com says, citing a source.
TheStreet.com's source says Mr. Steenland has apparently accepted
the idea that Mr. Carp and Delta CEO Richard Anderson will retain
their current posts in a new company.

Mr. Anderson, a former Northwest Airlines chief executive, assumed
the Delta CEO post from Gerald Grinstein in August.  That decision
to hire Mr. Anderson "raised new questions about Delta's future
strategy", WSJ reported at that time.

Mr. Anderson's appointment raises speculations that with an
outsider at the helm, Delta may reverse its "go it alone" strategy
and pursue a consolidation with Northwest, United Air Lines or
Continental Airlines, Business Week had said.

At the time of its bankruptcy, Delta and its unsecured creditors
committee fended off a $8,000,000,000 to $10,000,000,000
hostile takeover bid from US Airways Group, Inc.   Delta said it
was better off as a stand-alone carrier.

In January 2007, about two months since US Airways launched its
hostile bid, Delta and NWA were reported to have held discussions
about a potential merger.  While both companies denied the
reports, Mr. Grinstein subsequently admitted to sharing
information with Northwest.  "At the behest of our creditors'
committee we recently retained an investment banker to obtain
information from Northwest, a far cry from negotiating for a
merger with them," Mr. Grinstein told members of the Delta Board
Council, according to Reuters.

Delta did not discount any possibility of a merger post-
bankruptcy.  According to a prior WSJ report, the Creditors
Committee conditioned its support of Delta's stand-alone Chapter
11 plan of reorganization to a number of concessions, including
the appointment of a new board that favors consolidation as a
strategic opotion.

In October, Mr. Anderson said he saw "obvious benefits" for
Delta's employees and shareholders in Delta's merging with another
carrier, Meg Marco at The Star Tribune reported.  Although Mr.
Anderson did not name a potential merger target for Delta at that
time, analysts have argued that Northwest would make a good
partner because the carriers' routes complement each other, Ms.
Marco said.

As proposed, the Delta-Northwest deal would be a stock-for-stock
transaction, done "at market," meaning at roughly where the two
stocks are trading, with little or no premium for either side, WSJ
says.   The Journal adds that the dynamic has made non-economic
issues the center of the deal negotiations.

                      Compressed Timeline

The Journal says Delta's intent was to pursue tandem negotiations
with Northwest and United on a compressed timeline, get a deal
inked by mid-February and quickly begin the process for winning
antitrust approval.  Executives at the airlines believe any
mergers are more likely to pass regulatory muster during the
waning days of the Bush administration, the Journal relates.

A United-Continental deal will have to be done very near a
Northwest-Delta announcement, so the two potential combinations
would undergo regulatory scrutiny at the same time, the Journal
says citing a source familiar with the matter.  A different source
told the Journal United and Continental are poised to act quickly
once another airline merger is announced.

Northwest holds a "golden share" of preferred stock in Continental
that allows Northwest to block a merger of Continental with
another large carrier, WSJ notes.  But if Northwest agrees to
merge with Delta, Continental could redeem that stock for a total
of $100, even if the deal is never consummated, freeing
Continental to entertain other suitors, WSJ says.

Continental executives have repeatedly said they prefer to remain
independent, but would do what is best for the company if the
competitive landscape changes, WSJ notes.

Experts in the airline industry believe that a Northwest-Delta
merger is more likely as Delta's Anderson was previously CEO at
Northwest, and is already well acquainted with Northwest's
operations.

Bloomberg, citing an unnamed person familiar with Air France-KLM
Group's plans, has reported that Air France is encouraging a
merger between Delta and Northwest and may make a financial
investment to foster a tie-up.  A Delta-Northwest combination
would preserve the SkyTeam Alliance, a marketing group that
includes Delta, Northwest and United.

                         Other Issues

Other issues that will have to be taken up in a Delta-Northwest
combination include both carriers' labor groups.  The Air Line
Pilots Association branches at Delta and Northwest have signaled
that they could support a merger if they receive equity in the
combined airline and achieve a labor contract with improved terms,
WSJ says.

Some analysts worry a Delta merger would face antitrust hurdles,
Bankruptcylaw360 says.

Analysts also said mergers could lead to higher fares in some
markets, at least in the long term, The New York Times state.
Congress could also oppose a combination due to possible job loss
and reduction in competition, Times relates.

                        About Delta Air

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

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

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

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

                        *     *     *

As reported in the Troubled Company Reporter on Jan. 17, 2008,
Standard and Poor's said that media reports that Delta Air Lines
Inc. (B/Positive/--) entered into merger talks with UAL Corp.
(B/Stable/--) and Northwest Airlines Corp. (B+/Stable/--) will
have no effect on the ratings or outlook on Delta, but that
confirmed merger negotiations would result in S&P's placing
ratings of Delta and other airlines involved on CreditWatch, most
likely with developing or negative implications.

                    About Continental Airlines

Continental Airlines Inc. (NYSE: CAL) -- http://continental.com/
-- is the world's fifth largest airline.  Continental, together
with Continental Express and Continental Connection, has more than
2,900 daily departures throughout the Americas, Europe and Asia,
serving 144 domestic and 139 international destinations.  More
than 500 additional points are served via SkyTeam alliance
airlines.  With more than 45,000 employees, Continental has hubs
serving New York, Houston, Cleveland and Guam, and together with
Continental Express, carries approximately 69 million passengers
per year.

                          *     *     *

As reported in the Troubled Company Reporter on Dec. 27, 2007,
Fitch Ratings affirmed Continental Airlines 'B-' issuer default
rating with a stable outlook.

                  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 $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.

(Northwest Bankruptcy News; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).

                        *     *     *

Moody's Investor Service placed Northwest Airlines Corp.'s long
term corporate family and probability of default ratings at 'B1'
in May 2007.  The ratings still hold to date with a stable
outlook.

                       About UAL Corp.

Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA)
-- http://www.united.com/-- is the holding company for United
Airlines, Inc.  United Airlines is the world's second largest
air carrier.  The airline flies to Brazil, Korea and Germany.

The company filed for chapter 11 protection on Dec. 9, 2002
(Bankr. N.D. Ill. Case No. 02-48191).  James H.M. Sprayregen,
Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and
Steven R. Kotarba, Esq., at Kirkland & Ellis, represented the
Debtors in their restructuring efforts.  Fruman Jacobson, Esq.,
at Sonnenschein Nath & Rosenthal LLP represented the Official
Committee of Unsecured Creditors before the Committee was
dissolved when the Debtors emerged from bankruptcy.  Judge
Wedoff confirmed the Debtors' Second Amended Plan on
Jan. 20, 2006.  The company emerged from bankruptcy protection
on Feb. 1, 2006.  (United Airlines Bankruptcy News; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000).

                        *     *     *

Moody's Investor Service placed UAL Corp.'s long term corporate
family and probability ratings at 'B2' in January 2007.  The
ratings still hold to date with a stable outlook.


USINAS SIDERURGICAS: May Acquire More Iron Ore Assets in Brazil
---------------------------------------------------------------
Usinas Siderurgicas de Minas Gerais SA could acquire more iron ore
assets in Brazil, after buying three miners in Minas Gerais,
Business News Americas reports, citing an analyst with brokerage
Planner Corretora.

BNamericas relates that Usinas Siderurgicas acquired 100% of
companies J Mendes, Somisa and Global Mineracao for an initial
total of US$925 million.  Further payments for the firms could be
made depending on the results of drilling over the next two years.

The Planner Corretora analyst commented to BNamericas, "With this
acquisition by Usiminas [Usinas Siderurgicas], iron ore assets
have become scarcer.  I couldn't say precisely how scarce, but I
believe there are few high-quality assets available for sale."

Usinas Siderurgicas would need additional supply of the
steelmaking input to boost its capacity as planned over the coming
years, BNamericas says, citing the analyst.

"I believe the steel company will be the first candidate" to
pursue new iron ore acquisitions, the analyst told BNamericas.

Headquartered in Minas Gerais, Brazil, Usinas Siderurgicas de
Minas Gerais SA is among the world's 20 largest steel
manufacturing complexes, with a production capacity of
approximately 10 million tons of steel.  Usiminas System
companies produces galvanized and non-coated flat steel products
for the automotive, small and large diameter pipe, civil
construction, hydro-electronic, rerolling, agriculture, and road
machinery industries.  Brazil consumes 80% of its products and
the company's largest export markets are the US and Latin
America.  The company also sells in China and Japan.

                         *     *     *

As reported on Feb. 1, 2008, Moody's assigned a Ba1 local currency
rating and an Aa1.br rating on its Brazilian national scale to the
BRL500 million subordinated debentures due 2013 to be issued by
Usinas Siderurgicas de Minas Gerais S.A.

As reported on July 23, 2007, Moody's Investors Service upgraded
the foreign currency debt ratings of Usinas Siderurgicas de Minas
Gerais S.A. -- USIMINAS, and Companhia Siderurgica Paulista --
COSIPA, to Ba1 from Ba2, and assigned a corporate family rating of
Ba1 on its global scale and Aa1.br rating on the Brazilian
national scale.  Moody's said the ratings outlook is positive.


VALMONT INDUSTRIES: Buys 70% Stake in West Coast Engineering
------------------------------------------------------------
Valmont Industries Inc. has acquired a 70% interest in West Coast
Engineering Group LTD, a manufacturer of steel and aluminum
structures for the lighting, transportation and wireless
communication industries.

"The West Coast Engineering investment broadens Valmont's customer
base in North America and opens up new product and business
opportunities for both companies," said Valmont's Chairperson and
Chief Executive Officer, Mogens C. Bay.

Valmont's Engineered Support Structures Division President, Tom
Spears added, "West Coast Engineering, with three manufacturing
facilities in Canada and one in Washington State, will allow us to
better serve the northwestern region of North America.  We expect
both companies to benefit from sharing our combined resources and
capabilities.  West Coast Engineering will continue to be led by
Raini Habgood-Bailey, Ted Brochman and Jim Parisian.  We are
delighted that this fine management team will join with Valmont."

West Coast Engineering Group President, Raini Habgood-Bailey
added, "We believe our two companies are an excellent combination
of talents and resources and this transaction further enhances
both companies'strengths."

                       About  West Coast

Headquartered in Delta, British Columbia, Canada, West Coast
Engineering Group Ltd. has annual revenues in excess of US$40
million.

                         About Valmont

Headquartered in Valley, Nebraska, Valmont Industries Inc. --
http://www.valmont.com/-- is engaged in the  designing and
manufacturing poles, towers and structures for lighting and
traffic, wireless communication and utility markets, and a
provider of protective coating services.  The company is a world
leader in mechanized irrigation equipment for agriculture,
enhancing food production while conserving and protecting natural
water resources.  In addition, the company produces a wide variety
of tubing for commercial and industrial applications.  The company
also operates in Brazil.

                         *     *     *

As reported in the Troubled Company Reporter-Latin America on
Jan. 17, 2008, Standard & Poor's Ratings Services has raised its
ratings on metal products fabricator Valmont Industries Inc. and
removed them from CreditWatch, where they were placed with
positive implications on Nov. 20, 2007.  The corporate credit
rating was raised to 'BB+' from 'BB'.  S&P's outlook is stable.


* BRAZIL: US Dollar Drop May Help in Debt Payment, Moody's Says
---------------------------------------------------------------
Latin American countries including Colombia, Peru, Uruguay and
Brazil would benefit from the depreciating U.S. dollar by making
it easier for them to repay U.S. dollar-denominated debt as the
value of such debt is reduced, according to a Moody's Investors
Service report cited by Bloomberg News.

"For countries with large dollar debt, it could be some kind of
tail wind," Bloomberg News cited Dietmar Hornung, vice president
and senior analyst in Frankfurt for Moody's, as saying.

However, Kevin Plumberg of Reuters News relates, citing the same
Moody's report, that further decline of the greenback could hurt
trade competitiveness, increase inflation in countries with
currencies pegged to the dollar, and weigh on the value of huge
storehouses of foreign exchange reserves.

According to Reuters, the dollar has fallen 22 percent in the last
six years pressured by the large U.S. current account deficit,
steady diversification of reserves by central banks out of
dollars, and solid global economic growth.

                          *     *     *

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

COCO FUND: Sets Final Shareholders Meeting for February 21
----------------------------------------------------------
Coco Fund Limited will hold its final shareholders meeting on
Feb. 21, 2008, at 10:00 a.m., at Deloitte, Fourth Floor, Citrus
Grove, P.O. Box 1787, George Town, Grand Cayman, Cayman Islands

These agendas will be taken during the meeting:

          1) accounting of the winding-up process; and
          2) authorizing the liquidator to retain the records
             of the company for a period of five years from
             the dissolution of the company, after which they
             may be destroyed.

Coco Fund's shareholders decided on Jan. 21, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidator can be reached at:

            Stuart Sybersma
            Attn: Jessica Turnbull
            Deloitte
            P.O. Box 178, George Town
            Grand Cayman, Cayman Islands
            Telephone: (345) 949-7500
            Fax: (345) 949-8258


INTERNATIONAL MERCANTILE: Shareholders Meeting Set for Feb. 22
--------------------------------------------------------------
International Mercantile Bureau Limited will hold its final
shareholders meeting on February 22, 2008, at De Beers SA, 9
Rue Sainte Zithe, L-2763, in Luxembourg, for the purpose of
presenting to the members an account of the winding up of the
company and giving any explanation thereof.

International Mercantile's shareholders decided on
Dec. 17, 2007, to place the company into voluntary liquidation
under The Companies Law (2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

   Whitney Fearnhead
   Voluntary Liquidator
   c/o Maples and Calder
   Attorneys-at-law
   PO Box 309GT, Ugland House
   South Church Street, George Town
   Grand Cayman, Cayman Islands


JEFFERIES PARAGON: Proofs of Claim Filing Is Until February 21
--------------------------------------------------------------
Jefferies Paragon Fund (Cayman), Ltd.'s creditors are given until
Feb. 21, 2008, to prove their claims to dms Corporate Services
Ltd., the company's liquidator, or be excluded from receiving any
distribution or payment.

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

Jefferies Paragon's shareholders agreed on Jan. 3, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

           dms Corporate Services Ltd.
           Attn: Jenny Suto
           P.O. Box 1344, Ansbacher House
           20 Genesis Close, Grand Cayman KY1-1108
           Cayman Islands
           Telephone: (345) 946 7665
           Fax: (345) 946 7666


JEFFERIES PARAGON MASTER: Proofs of Claim Filing Ends on Feb. 21
----------------------------------------------------------------
Jefferies Paragon Master Fund, Ltd.'s creditors are given until
Feb. 21, 2008, to prove their claims to dms Corporate Services
Ltd., the company's liquidator, or be excluded from receiving any
distribution or payment.

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

Jefferies Paragon's shareholders agreed on Jan. 3, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

           dms Corporate Services Ltd.
           Attn: Jenny Suto
           P.O. Box 1344, Ansbacher House
           20 Genesis Close, Grand Cayman KY1-1108
           Cayman Islands
           Telephone: (345) 946 7665
           Fax: (345) 946 7666


JOHCM TRIDENT: Proofs of Claim Filing Deadline Is February 21
-------------------------------------------------------------
JOHCM Trident Financials Fund's creditors are given until
Feb. 21, 2008, to prove their claims to Joshua Grant and Richard
Gordon, the company's liquidators, or be excluded from receiving
any distribution or payment.

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

JOHCM Trident's shareholder decided on Dec. 20, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidators can be reached at:

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


LDA HOLDINGS: Proofs of Claim Filing Deadline Is February 21
------------------------------------------------------------
LDA Holdings Ltd.'s creditors are given until Feb. 21, 2008, to
prove their claims to Bobby Toor and Richard Gordon, the company's
liquidators, or be excluded from receiving any distribution or
payment.

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

LDA Holdings' shareholders agreed on Jan. 10, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidators can be reached at:

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


MAPLETREE REAL: To Hold Final Shareholders Meeting on Feb. 21
-------------------------------------------------------------
Mapletree Real Estate Mezzanine Fund I Limited will hold its
final shareholders meeting on February 21, 2008 at 10:00 a.m.

These agendas will be taken during the meeting:

   1) To confirm, ratify and approve the conduct of
      the liquidation by the liquidators, S.L.C. Whicker
      and K.D. Blake;

   2) To approve the quantum of the liquidators'
      remuneration, that being fixed by the time
      properly spent by the liquidators and their staff;

   3) To lay accounts before the meeting showing
      how the winding up has been conducted and how
      the property of the company has been disposed
      of as at the date of the final meeting and to
      approve such accounts; and

   4) To authorise the liquidators to retain the
      records of the company and of the liquidators for
      a period of five years from the dissolution of the
      company, after which they may be destroyed.

Mapletree Real's shareholders decided on January 21, 2008,
to place the company into voluntary liquidation under The
Companies Law (2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

   K.D. Blake
   Attn: Dorra Mohammed
   Voluntary Liquidator
   P.O. Box 493
   Grand Cayman KY1-1106
   Cayman Islands
   Telephone: 345-949-4800 and
              345-914-4475
   Fax:       345-949-7164


ML PRINCIPAL: Proofs of Claim Filing Is Until February 21
---------------------------------------------------------
ML Principal Protection Plus Ltd.'s creditors are given until Feb.
21, 2008, to prove their claims to Bobby Toor and Jan Neveril, the
company's liquidators, or be excluded from receiving any
distribution or payment.

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

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

The liquidators can be reached at:

           Bobby Toor and Jan Neveril
           Maples Finance Limited
           P.O. Box 1093, George Town
           Grand Cayman, Cayman Islands


NEW ORIENTAL: Proofs of Claim Filing Deadline is February 22
------------------------------------------------------------
New Oriental Gas Limited's creditors are given until
Feb. 22, 2008, to prove their claims to Mr. Shen Jianwei, the
company's liquidator, or be excluded from receiving any
distribution or payment.

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

New Oriental's shareholder decided on Dec. 27, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidators can be reached at:

   Shen Jianwei
   Voluntary Liquidator
   Corporate Filing Services Ltd.
   P O Box 613, Grand Cayman KY1-1107
   Cayman Islands
   Telephone: (86-10) 8522 1133
   Fax:       (86-10) 8522 1313


PARMALAT SPA: Sells Football Club and Brand for EUR17.1 Million
---------------------------------------------------------------
Enrico Bondi, the Extraordinary Commissioner for Parmalat S.p.A.,
has sold Parma FC, the Italian football club, for EUR4,500,000,
and its club brand for EUR12,600,000, to Eventi Sportivi, The
Financial Times reported.

Tommaso Ghirardi, Parma's chairman, now controls 20% of Eventi
Sportivi, The Financial Times said.  Damas Srl is the main
shareholder, and other investors include Banca Monte Parma, as
well as Gabriella Pasotti and Brixia Incipit.

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 $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.  (Parmalat Bankruptcy News, Issue
No. 97; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


PESCADORA LIMITED: Final Shareholders Meeting is on February 21
---------------------------------------------------------------
Pescadora Limited will hold its final shareholders meeting on
Feb. 21, 2008, at the office of the company.

These agendas will be taken during the meeting:

          1) accounting of the winding-up process; and
          2) authorizing the liquidator to retain the records
             of the company for a period of five years from
             the dissolution of the company, after which they
             may be destroyed.

Pescadora's shareholders decided on Jan. 8, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidator can be reached at:

            Royhaven Secretaries Limited
            Attn: Andrew Leggatt
            c/o P.O. Box 707, Grand Cayman KY1-1107
            Cayman Islands
            Telephone: 945-4777
            Fax: 945-4799


SCR MARKET: Proofs of Claim Filing Deadline Is February 21
----------------------------------------------------------
SCR Market Neutral Fund (Cayman), Ltd.'s creditors are given until
Feb. 21, 2008, to prove their claims to dms Corporate Services
Ltd., the company's liquidator, or be excluded from receiving any
distribution or payment.

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

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

The liquidator can be reached at:

           dms Corporate Services Ltd.
           Attn: Jenny Suto
           P.O. Box 1344, Ansbacher House
           20 Genesis Close, Grand Cayman KY1-1108
           Cayman Islands
           Telephone: (345) 946 7665
           Fax: (345) 946 7666


SEAGATE TECH: Board of Directors Okays US$2.5BB Share Repurchase
----------------------------------------------------------------
Seagate Technology disclosed that its board of directors has
approved an increase in its quarterly dividend from US$0.10 to
US$0.12 per share, effective with the dividend expected to be paid
to shareholders after the conclusion of the company's third fiscal
quarter of 2008.

Additionally, the board of directors has authorized the company to
repurchase up to an additional US$2.5 billion of its outstanding
common shares over the next 24 months.  This new share repurchase
authorization continues our commitment to enhancing shareholder
value.

Seagate expects to fund the share repurchase through a combination
of cash on hand, future cash flow from operations and potential
alternative sources of financing.  Share repurchases under this
program may be made through a variety of methods, which may
include open market purchases, privately negotiated transactions,
block trades, accelerated share repurchase transactions or
otherwise, or by any combination of such methods.  The timing and
actual number of shares repurchased will depend on a variety of
factors including the common share price, corporate and regulatory
requirements and other market and economic conditions.  The share
repurchase program may be suspended or discontinued at any time.

                     About Seagate Technology

Headquartered in Grand Cayman, Cayman Islands, Seagate Technology
(NYSE: STX) -- http://www.seagate.com-- is engaged in the design,
manufacture and marketing of rigid disc drives.  The company
produces a range of disc drive products addressing enterprise
applications, where its products are used in enterprise servers,
mainframes and workstations; desktop applications, where its
products are used in desktop computers; mobile computing
applications, where the company's products are used in notebook
computers, and consumer electronics applications, where its
products are used in a variety of devices, such as digital video
recorders, gaming devices and other consumer electronic devices
that require storage.  In May 2006, the company acquired Maxtor
Corporation.


SEAGATE TECHNOLOGY: S&P's BB+ Rating Unmoved by Share Repurchase
----------------------------------------------------------------
Standard & Poor's Ratings Services said that its ratings on Scotts
Valley, California-based Seagate Technology (BB+/Stable/--) are
not affected by the company's announcement that the board of
directors has approved a US$2.5 billion share repurchase program.
The new program replaces a US$2.5 billion authorization approved
in August 2006.  Similar to its prior share repurchase program,
the authorization is for two years, and S&P expects it to be
administered at a measured pace.

Seagate's liquidity is adequate to fund a US$2.5 billion program,
with cash of US$1.75 billion as of Dec. 31, 2007, and about US$700
million of discretionary cash flow in the 12 months ended December
2007.  The company is expected to maintain a moderate leverage
profile.

Headquartered in Grand Cayman, Cayman Islands, Seagate Technology
(NYSE: STX) -- http://www.seagate.com-- is engaged in the design,
manufacture and marketing of rigid disc drives.  The company
produces a range of disc drive products addressing enterprise
applications, where its products are used in enterprise servers,
mainframes and workstations; desktop applications, where its
products are used in desktop computers; mobile computing
applications, where the company's products are used in notebook
computers, and consumer electronics applications, where its
products are used in a variety of devices, such as digital video
recorders, gaming devices and other consumer electronic devices
that require storage.  In May 2006, the company acquired Maxtor
Corporation.


SOUTH SHORE: Proofs of Claim Filing Ends on February 21
-------------------------------------------------------
South Shore CLO II, Ltd.'s creditors are given until
Feb. 21, 2008, to prove their claims to George Bashforth and Giles
Kerley, the company's liquidators, or be excluded from receiving
any distribution or payment.

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

South Shore's shareholders agreed on Jan. 10, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidators can be reached at:

           George Bashforth and Giles Kerley
           Maples Finance Limited
           P.O. Box 1093, George Town
           Grand Cayman, Cayman Islands


TELEXPRESS INVESTMENTS: Proofs of Claim Filing Ends on Feb. 21
--------------------------------------------------------------
Telexpress Investments Limited's creditors are given until
Feb. 21, 2008, to prove their claims to Richard Gordon and Chris
Marett, the company's liquidators, or be excluded from receiving
any distribution or payment.

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

Telexpress Investments' shareholders agreed on Jan. 7, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

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


UBS PACTUAL: To Hold Final Shareholders Meeting on February 21
--------------------------------------------------------------
UBS Pactual Orbit Debt Fund, Ltd. will hold its final shareholders
meeting on February 21, 2008, at 10:00 a.m., at the offices of
Banco UBS Pactual S.A., Praia de Botafogo, 501, 5th Floor, Torre
Corcovado, Botafogo, in Rio de Janeiro, Brazil.

These agendas will be taken during the meeting:

   1) To lay accounts before the meeting showing
      how the winding up has been conducted and how
      the property has been disposed of to day of final
      winding up on 21st February 2008; and

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

UBS Pactual's shareholders decided on January 11, 2008, to
place the company into voluntary liquidation under The
Companies Law (2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

   Iuri Rapoport
   Carolina Tepedino
   Joint Voluntary Liquidators
   Banco UBS Pactual S.A.
   Praia de Botafogo, 501
   5th Floor, Torre Corcovado
   Botafogo, Rio de Janeiro
   RJ - 22250-040, Brazil


ZEBRA CAPITAL: Proofs of Claim Filing Deadline is February 21
-------------------------------------------------------------
Zebra Capital Limited's creditors are given until Feb. 21, 2008,
to prove their claims to Mora Goddard and Emile Small the
company's liquidators, or be excluded from receiving any
distribution or payment.

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

Zebra Capital's shareholder decided on Jan. 10, 2008, 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 and Emile Small
    Joint Voluntary Liquidators
    Maples Finance Limited
    P.O. Box 1093GT
    Grand Cayman, Cayman Islands



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

CODELCO: Power Shortages May Adversely Affect Copper Output
-----------------------------------------------------------
Codelco's copper production may be adversely affected by energy
shortages in Chile, as the country suffers from surging energy
prices because of a shortage of natural gas from neighboring
Argentina, Heather Walsh of Bloomberg News reports, citing
lawmakers and a union leader as saying.

According to the report, water levels in reservoirs, which are 40
percent lower than a year ago, are further being lowered by dry
weather, thus limiting power production at hydroelectric plants.

"The system is going to be very close to breaking down," Senator
Baldo Prokurica, a member of the Senate's mining and energy
committee, told Bloomberg News.

Codelco is studying ways to make its energy usage more efficient,
Bloomberg cited Mining Minister Santiago Gonzalez as saying.

Corporacion Nacional del Cobre - Codelco explores, develops,
mines and processes copper in Chile. The principal product of
the company is Grade A copper cathodes. The Company, which is
owned by Chilean government, exports most of its production to
companies in Europe and Asia.


SCIENTIFIC GAMES: Delivers Instant Ticket System to China Sports
----------------------------------------------------------------
Scientific Games has planned to deliver an instant lottery ticket
sales system and related services to the China Sports Lottery for
the lottery market in the People's Republic of China.  This
contract is separate from the recently announced contract with
China Sports Lottery Printing, Ltd.

The national instant lottery ticket sales system will track the
distribution and validation of instant tickets throughout the
People's Republic of China.  Scientific Games will also provide a
national call center and 90,000 instant ticket validation
terminals within two years of the execution of the contract, and
related services such as game design, marketing and certain
distribution to the China Sports Lottery provincial lotteries.
Scientific Games will earn revenues based on a percentage of
retail sales.

In addition, during the first quarter of 2008, Scientific Games
will launch a four province pilot project, in the provinces of
Hebei, Jiangsu, Shandong and Zhejiang.  These four provinces are
among the largest and wealthiest in China, with a combined
population of approximately 280 million.

"We have been working closely on the development of a national
instant ticket program with the CSL, and look forward to launching
this project, especially in connection with a world-class event
like the Beijing Olympics," stated Scientific Games Chairperson
and Chief Executive Officer, Lorne Weil.  "Based on the population
and our market research, we see tremendous potential for the China
Sports Lottery.  The breadth and complexity of this project
represent the culmination of more than a year of planning."

                    About Scientific Games

Headquartered in New York City, Scientific Games Corporation
(Nasdaq: SGMS) - http://www.scientificgames.com/-- is an
integrated supplier of instant tickets, systems and services to
lotteries worldwide.  The company is a supplier of fixed odds
betting terminals and systems, amusement and skill with prize
betting terminals, interactive sports betting terminals and
systems, and wagering systems and services to pari-mutuel
operators.  It is also a licensed pari-mutuel gaming operator in
Connecticut, Maine and the Netherlands and is a supplier of
prepaid phone cards to telephone companies.  Scientific Games'
customers are in the United States and more than 60 other
countries.  The company has additional productions and operating
facilities located in Austria, Chile and the United Kingdom.

                         *     *     *

Moody's Investor Services placed Scientific Games Corporation's
probability of default rating at 'Ba2' in September 2006.  The
rating still hold to date with a stable outlook.



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

BANCO DE BOGOTA: Seeking Shareholders' Okay for Dividend
--------------------------------------------------------
Banco de Bogota will seek shareholders' approval on March 7 for a
COP113 per share and per month dividend, Business News Americas
reports.

Banco de Bogota said in a filing with the Colombian financial
regulator Superfinanciera that the new dividend will be payable
over the first 10 days of each month -- April through
September 2008.

Banco de Bogota gave out a COP110-share dividend in 2007,
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.

                          *     *     *

On Oct. 18, 2007, Moody's said that Banco de Bogota's Ba3 long-
term foreign currency deposit rating, with a positive outlook, is
constrained by Colombia's foreign currency deposit ceiling.


GRAN TIERRA: Closes Colombian Block Stake Buyout Deal With Avalon
-----------------------------------------------------------------
Avalon Oil & Gas Inc. has closed its acquisition of a 20% interest
in the Talora Block and a 15% interest in the Mecaya Block, in
Colombia, from Gran Tierra Energy Inc.  Avalon Oil also said that
the first Talora Block operation, the re-entry and re-evaluation
of the Manantiales well, has begun.

Avalon's Chief Executive Officer, Kent A. Rodriguez, stated "We
are extremely pleased with the addition of these two blocks to our
growing portfolio of oil and gas producing properties.  The Talora
and Mecaya Blocks will provide a foundation for many future
acquisitions in Colombia.  The reduced field size-based royalties,
attractive fiscal terms from the Colombian Government, and low
annual ground rents make the economics in Colombia quite
compelling."

The workover of the Manantiales-1 well is the first of five
prospects to be tested on the Talora Block.  The 108,333 acre
block is located in the Middle Magdalena Basin, approximately
75 km west of the capital city of Bogota.  This prolific area is
adjacent to and on trend with several oil producing fields
including the 117 million barrel Guando field, operated by
Petrobras, and the adjacent Mana field, which contains 10 wells
which typically flow 500 to 600 BOPD of 30 API oil from high
quality sands at approximately 5,500 feet.

The Talora Block is well served by road and pipeline access, and
is near the city of Neiva, which functions as the oil industry
services and supply base.  It is directly south of a number of oil
fields which are currently under development or redevelopment.
These include the Puli C, Rio Opia, Toqui-Toqui, and Ambrosia oil
field which produce from Cretaceous sands at depths of less than
5,000 feet.  Interoil of Norway recently announced that the first
four wells in its planned 9 well program in the region have all
been successful and are producing at rates of 300 to 500 BOPD per
well.  Pacific Stratus  is also active in this region and is
developing the 5 million barrel Puli B field which produces 32
API oil.  Avalon's partners in the Talora Block development
include PEI, an independent Colombian operator of several
exploration and development projects, and PetroSouth Energy.

"We are very excited about the potential reserves in the Talora
Block.  They are a strong complement to the existing production
that will be realized in the short term from Avalon's investment
in the Mecaya Block", commented Avalon Director Menno Wiebe.  "In
this transaction, Avalon is successfully executing our mandate to
identify robust oil production assets in Colombia and evolve our
growing property portfolio."

                          Mecaya Block

Avalon also acquired a 15% interest in the 74,000 acre Mecaya
Block in the Putumayo basin from Gran Tierra Energy, Inc.  This
Block contains the Mecaya 1 oil discovery and two other wells
which have tested oil.  The Mecaya 1 was drilled by the Colombian
National Oil Company, Ecopetrol, in 1989. The Mecaya 1 well tested
approximately 650 BOPD of 27 API oil, with no water at a stable
flow rate over a period of 24 hours.  At the time of drilling, the
Mecaya well was a considerable distance from infrastructure.  With
oil prices much lower than they are today, the development was
considered too small (at 5 MMBO) to meet Ecopetrol's economic
threshold in 1989.  The market conditions favor this development,
with oil produced in this area having a netback of approximately
US$70.00 per barrel.  Current development plans include: building
an access road, re-entering the Mecaya well and putting it on
production.  If the initial production demonstrates that the
reserves are approximately 5 million barrels of recoverable oil as
mapped by Ecopetrol, the field will be developed with additional
wells.

Avalon Director, Stephen Newton added.  "Avalon's performance has
proven its business model of investing in producing properties
with stable cash flows provides a consistent return on investment.
With the company's expansion into these promising Colombian
properties, Avalon is poised to deliver significantly increased
returns."

                  About Avalon Oil & Gas, Inc.

Avalon Oil & Gas, Inc. is an oil and gas company engaged in the
acquisition and development of producing oil and gas properties.
In addition, Avalon's technology group acquires and develops oil
production enhancing technologies.  Through Oiltek, Inc., Avalon's
majority-owned subsidiary, Avalon is building an asset portfolio
of innovative technologies in the oil and gas industry to maximize
enhancement opportunities at its various oil and gas properties.

                      About Gran Tierra

Headquartered in Alberta, Canada, Gran Tierra Energy Inc. (OTCBB:
GTRE.OB) --http://www.grantierra.com/-- is a publicly traded oil
and gas exploration and production company with operations in
Argentina, Colombia and Peru.

                          *     *     *

In a 10-Q filing dated November 8, 2007, Gran Tierra Energy Inc.
management disclosed that the company's ability to continue as a
going concern is dependent upon obtaining the necessary financing
to acquire, explore and develop oil and natural gas interests and
generate profitable operations from its oil and natural gas
interests in the future.

The company incurred a net loss of $10,630,571 for the nine months
ended September 30, 2007, and had an accumulated deficit of
$18,673,955 as at September 30, 2007.  The company expects to
incur substantial expenditures to further its capital investment
programs and the company's existing cash balance and cash flow
from operating activities may not be sufficient to satisfy its
current obligations and meet its capital investment commitments.

To provide financing for Gran Tierra's ongoing operations, the
company said it secured a $50 million credit facility with
Standard Bank Plc on February 28, 2007, which will provide
additional financing for the company's future operations.  As at
September 30, 2007, the company said it has not drawn-down on this
facility.

The company's intention is to build a portfolio of oil and natural
gas production, development, and exploration opportunities using
the capital raised during 2006, cash provided by future operating
activities and by using the available credit facility.  However,
the company said it may need to secure additional sources of
capital to fund its future operating activities.


POLYONE CORP: Reports US$7.1-Mln Net Income in Fourth Qtr. 2007
---------------------------------------------------------------
PolyOne Corporation has reported fourth-quarter consolidated sales
of US$631.3 million, a 6% increase compared with US$595.2 million
in the fourth quarter of 2006.

Net income was US$7.1 million for the fourth quarter of 2007
versus US$14.5 million from continuing operations for the fourth
quarter of 2006.

"We are encouraged that we delivered both top line growth and
stronger earnings during the quarter, and are energized by the
fact that never in PolyOne's history have so many opportunities
been present to affect changeand drive cash flow and earnings,
despite the economic uncertainty Corporate America faces near
term," said chairperson, president and chief executive officer,
Stephen D. Newlin.  "We accomplished much in 2007, including
materially reducing our historical earnings volatility by
divesting our interest in OxyVinyls which deleveraged our balance
sheet and accelerated our global specialization strategy."

"We have prudently balanced commercial investment with
productivity increases, positioning us to leverage our new
commercial capabilities and focus our energy on profitably growing
our businesses during this period of economic turbulence," Mr.
Newlin added.

International Color and Engineered Materials sales and operating
income for fourth quarter 2007 increased 15% and 48%,
respectively, compared with the fourth quarter of 2006. PolyOne
Distribution sales increased 10%, whileoperating income rose from
US$3.6 million to US$5.7 million, a 58% increase, in the fourth
quarter of 2007 compared to the fourth quarter of 2006.  Operating
income for segments reported within 'All Other' meaningfully
improved by US$4.0 million to earn US$1.5 million in the fourth
quarter 2007, compared with the US$2.5 million loss reported in
the same period last year.  For the fourth quarter of 2007,
operating income for PolyOne's non-vinyl businesses increased 175%
compared with the same period a year ago.  Non-vinyl businesses
include PolyOne Distribution, International Color and Engineered
Materials and All Other.

Fourth quarter Vinyl Business sales were flat while earnings fell
US$8 million, or approximately 70%, compared to the fourth quarter
of 2006, in line with company expectations, reflecting weak
residential construction market demand and downward margin
pressure resulting from higher raw material and energy costs.

"Earnings in the fourth quarter reflected an important and
meaningful shift toward our specialty platform.  The magnitude of
our non-vinyl income growth reflects significant strides in
building an earnings platform separate from the cyclical
residential housing market.  As we look ahead, we expect this base
will continue to grow to become the primary source of earnings and
earnings growth for the company," stated Mr. Newlin.

Sales for the full year 2007 were US$2.64 billion, up 1% from the
US$2.62 billion reported for 2006.

                        2007 Highlights

   -- Divestiture of the company's 24% interest in OxyVinyls for
      US$261 million, eliminating a major source of earnings
      volatility.

   -- Financial profile strengthened with redemption of entire
      US$241 million balance of the company's 2010 senior notes,
      resulting in lowest outstanding debt balance and leverage
      ratio in company history.

   -- Announced the acquisition of GLS Corporation (which
      subsequently closed on Jan. 2, 2008), a leading North
      American business in the US$3.5 billion global
      thermoplastic elastomers market.

   -- Established vinyl compounding foothold in China by
      acquiring the assets of Ngai Hing PlastChem.

   -- Specialty platform businesses' operating income more than
      doubled to nearly US$30 million in 2007 compared with
      2006:

      -- International Color and Engineered Materials delivered
         strong sales and earnings growth of 16% and 25%,
         respectively;

      -- North American Color reversed steep losses with a
         greater than US$9 million operating income improvement
         from 2006; and

      -- Specialty platform gross margin as a percent of sales
         increased 1.7% points to over 16% in 2007.

   -- PolyOne Distribution set an earnings record, posting a 16%
      increase compared to 2006.

   -- Innovation processes are gaining momentum with 27 new
      commercial launches in 2007.

   -- Increased commercial resources by adding 127 people since
      first quarter 2006 and upgraded talent level by investing
      in training to develop sales skills and marketing
      processes.

                         2008 Outlook

The company anticipates 2008 total sales growth in the range of
10% to 12%, as a result of sales improvements in  its distribution
and specialty businesses, including sales from GLS, despite the
likelihood of incremental degradation in the North American
residential construction market.  Similarly, PolyOne expects full-
year earnings growth in 2008 even though near term economic
conditions should remain challenging.  Growth in PolyOne's non-
vinyl businesses, operating improvements and lower interest
expense underpin current expectations.  Beyond the broader
economic conditions, raw material and energy costs remain a fluid
dynamic that could impact the magnitude and direction of company's
preliminary forecast.


                       About PolyOne Corp.

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

                         *     *     *

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


* COLOMBIA: Moody's Says US Dollar Drop May Help in Debt Payment
----------------------------------------------------------------
Latin American countries including Colombia, Peru, Uruguay and
Brazil would benefit from the depreciating U.S. dollar by making
it easier for them to repay U.S. dollar-denominated debt as the
value of such debt is reduced, according to a Moody's Investors
Service report cited by Bloomberg News.

"For countries with large dollar debt, it could be some kind of
tail wind," Bloomberg News cited Dietmar Hornung, vice president
and senior analyst in Frankfurt for Moody's, as saying.

However, Kevin Plumberg of Reuters News relates, citing the same
Moody's report, that further decline of the greenback could hurt
trade competitiveness, increase inflation in countries with
currencies pegged to the dollar, and weigh on the value of huge
storehouses of foreign exchange reserves.

According to Reuters, the dollar has fallen 22 percent in the last
six years pressured by the large U.S. current account deficit,
steady diversification of reserves by central banks out of
dollars, and solid global economic growth.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Dec. 27, 2007, Standard & Poor's Ratings Services assigned a
BB+ long-term sovereign foreign currency rating and B short-term
sovereign foreign currency rating on Colombia.

As reported in the Troubled Company Reporter-Latin America on
June 15, 2007, Standard & Poor's Ratings Services assigned its
'BB+' long-term senior unsecured rating to the Republic of
Colombia's proposed 2027 Global Titulos de Tesoreria bond, a
bond denominated in Colombian pesos but payable in US dollars.


* COLOMBIA: US Free Trade Pact Promotes Opportunities, Cato Says
----------------------------------------------------------------
Cato Institute Free Trade Bulletin "A U.S.-Colombia Free Trade
Agreement: Strengthening Democracy and Progress in Latin America"
said in a press statement reported by EarthTimes on Feb. 7, 2008,
that congress's approval of the U.S.-Colombia free trade agreement
is vital for U.S. interests in the Andean region.

"The free trade agreement with Colombia was designed to both
strengthen civil society in Colombia and also to open economic
opportunities for U.S. producers to sell to the country's 44
million upwardly mobile, American-friendly consumers," write the
authors, Daniel Griswold, director of Cato's Center for Trade
Policy Studies, and Juan Carlos Hidalgo, project coordinator for
Latin America at Cato's Center for Global Liberty and Prosperity.

The agreement has faced strong opposition from some Democrats who
say it should not be signed until Colombia succeeds in tackling
violence, including that directed toward union leaders.  Organized
labor in the United States, in particular the AFL-CIO, a key
constituency of the Democratic Party, has made defeating
the agreement a major political goal.

"Rejecting a free-trade agreement with Colombia because of
lingering violence in that country would be an irresponsible
mistake by Congress," write the authors.  Violence has fallen
dramatically since President Uribe took office in 2002.  It
would also be unfair to the country that has seen great
improvement in safety, security, and economic opportunity for
Colombians thanks to Uribe's policies.

Equally important, Colombia has been a staunch American ally in a
region dominated by U.S. ideological foe Hugo Chavez.  Opposing
the agreement would not only shun a friend, it could potentially
weaken Colombia's anti-Chavez stance as it curtails its economic
opportunity and development.  In contrast, approving the agreement
would ensure U.S.-Colombian cooperation in years to come, even
after pro-U.S. President Uribe leaves office.

The authors conclude: "Approving a free trade agreement with
Colombia is about supporting a market democracy in a region where
liberal values are under attack.  It is about being a reliable
partner in turbulent times.  It is also about building long-
lasting institutions for economic prosperity and democracy for
millions of Colombians."

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Dec. 27, 2007, Standard & Poor's Ratings Services assigned a
BB+ long-term sovereign foreign currency rating and B short-term
sovereign foreign currency rating on Colombia.

As reported in the Troubled Company Reporter-Latin America on
June 15, 2007, Standard & Poor's Ratings Services assigned its
'BB+' long-term senior unsecured rating to the Republic of
Colombia's proposed 2027 Global Titulos de Tesoreria bond, a
bond denominated in Colombian pesos but payable in US dollars.



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

DENNY'S CORP: To Report Fourth Quarter Financials on February 13
----------------------------------------------------------------
Denny's Corporation expects to announce financial and operating
results for its fourth quarter and year ended Dec. 26, 2007, on
Wednesday, Feb. 13, 2008, after the markets close.  Senior
management will hold a conference call on the same day at 5:00
p.m. (EST) to discuss these results and answer questions.

Denny's is America's largest full-service family restaurant chain,
consisting of 394 company-owned units and 1,152 franchised and
licensed units, with operations in the United States, Canada,
Costa Rica, Guam, Mexico, New Zealand and Puerto Rico. For further
information on Denny's, including news releases, links to SEC
filings and other financial information, please visit the Denny's
website referenced above.

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

                         *     *     *

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



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

BANCO INTERCONTINENTAL: Pedro Goico Denies Control of Pepe Card
---------------------------------------------------------------
Dominican retired colonel Pedro Julio (Pepe) Goico denied to
Dominican Today having control of a credit card that the Banco
Intercontinental issued before its collapse in March 2003.

Dominican Today relates that the credit card is nicknamed as the
Pepe card.  The Pepe card scandal broke in 2002, when former Banco
Intercontinental head Ramon Baez Figueroa blamed the Dominican
government spread rumors that led to a "run on that bank and its
ultimate collapse."

Mr. Goico said in an interview on Colorvision Channel 9 that he
didn't purchase a twin engine Jetstream.  Mr. Goico explained that
it was former Banco Intercontinental currency officer Alberto
Torres who bought the aircraft and assigned it to Marcos Baez,
"with the same money from the card," Dominican Today notes.  The
Pepe card was also used to rent a plane from the company Caribair
and on it was placed the logo of the Presidency's Security Detail.

The Dominican Republic's phone-tappers collaborated with the
former Armed Forces minister Jose Miguel Soto Jimenez, causing
conflicts within the Dominican military, Dominican Today says,
citing Mr. Goico.  The head of the phone-tappers worked with Mr.
Jimenez and recorded Mr. Figueroa speaking about the Pepe card,
which led to keeping Carlos Luciano Diaz Morfa -- one of the Army
chiefs of staff during President Mejia's administration -- from
becoming Armed Forces minister.

Meanwhile, Mr. Figueroa told Dominican Today that former Banco
Intercontinental vice president Marcos Baez Cocco was in charge of
the Pepe card transactions, Dominican Today says, citing Mr.
Figueroa.

"It was Mr. Marcos Baez Cocco, who to my understanding was the one
who paid it and I handed in the vouchers.  It was that bank
officer who handled it all, but I kept the bills and sent the
consumption vouchers to him," Mr. Figueroa commented to Dominican
Today.

Located in Dominican Republic, Banco Intercontinental aka
Baninter collapsed in 2003 as a result of a massive fraud and a
resulting deficit of US$2.2 billion.  As a consequence, all of
its branches were closed.  The bank's current and savings
accounts holders were transferred to the bank's new owner --
Scotiabank.  The bankruptcy of Baninter was considered the
largest in world history, in relation to the Dominican
Republic's Gross Domestic Product.  The resulting deficit was
equal to 12% to 15% of the country's national GDP.  It costs
Dominican taxpayers DOP55 billion and resulted to the country's
worst economic crisis.



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

* ECUADOR: Commission Lays Out Plan to Create Autonomous Regions
---------------------------------------------------------------
Prensa Latina reported Wednesday that a commission comprised of
the Ecuadorian government and prefectures are proposing a
decentralization and territorial restructuring of the country.

The group is considering the creation of seven autonomous
territories to achieve a better distribution of resources, the
report said.

The conclusions of the commission will be outlined to the
Constituent Assembly, Prensa Latina added.

                         *     *     *

As reported in the Troubled Company Reporter-Latin America on
Dec. 26, 2007, Standard & Poor's Ratings Services assigned a
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's rating outlook is stable.



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

ALCATEL-LUCENT: Works with Oki Electric to Market WiMAX Terminals
-----------------------------------------------------------------
Oki Electric Industry Co. Ltd. and Alcatel-Lucent agreed to
jointly market OKI's mobile WiMAX terminals to the worldwide
market.  As part of the agreement, a demonstration showing how OKI
terminals work with Alcatel-Lucent's WiMAX base stations will be
featured at Alcatel-Lucent's booth at Mobile World Congress 2008,
which will be held from Feb. 11 to 14 in Barcelona, Spain.

"We are pleased to be working with Alcatel-Lucent, a global leader
in the field of advanced communications infrastructure technology,
to bring to consumers useful, reliable mobile devices that will
enable them to stay in touch with the people they care about and
get the information they need no matter where they are," said  Oki
Electric Industry's Network Systems Company President, Kichiro
Akino.  "This collaboration is an important step in promoting
WiMAX technology worldwide because by working together we will be
able to ensure seamless interoperability between OKI's various
mobile WiMAX terminals and Alcatel-Lucent's WiMAX base stations,
making both sets of products more useful to businesses and
consumers alike."

By joining the Open Customer Premises Equipment (CPE) Program, OKI
Electric will work with Alcatel-Lucent to share market data
enabling both companies to better define, test and introduce
features earlier, ensure faster availability of end-to-end
solutions and widen the offering of terminals.

"In signing the Global Co-Marketing and Interoperability Testing
Agreements, OKI joins and further enhances Alcatel-Lucent's Open
CPE Program," said Alcatel-Lucent's WiMAX Vice President, Karim El
Naggar.  "This will enable the two companies to offer an end-to-
end WiMAX 802.16e-2005 solution that leverages OKI's leadership in
developing compact devices with minimal power consumption."

The two companies will collaborate on conducting interoperability
tests to obtain WiMAX Forum Certification and focus on offering
new devices, developing features and improving overall performance
on a wide range of devices, including CF cards to mobile terminals
such as PCs, PDAs and UMPCs, data cards like USB dongles, and
devices with a WiFi interface.

OKI Electric expects to begin shipping WiMAX compatible products
in the second half of this year, in time to coincide with the
commercial launch of mobile WiMAX service.

               About Oki Electric Industry Co. Ltd.

Founded in 1881, Oki Electric Industry Co., Ltd. --
http://www.oki.com/-- is Japan's first telecommunications
manufacturer, with its headquarters in Tokyo, Japan.  The company
provides top-quality products, technologies and solutions to its
customers through its info-telecom system business, semiconductor
business and printer business.  All three businesses function as a
collective force to create exciting new products and technologies
that satisfy a spectrum of customer needs in various markets.

                       About Alcatel-Lucent

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

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

                         *     *     *

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

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



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AIR JAMAICA: Starts Job Cutting Plan at Miami Marketing Dept.
-------------------------------------------------------------
Air Jamaica's two marketing staffs at Miami have been laid off as
the airline company plans to cut jobs by an estimated 30 percent,
sources told CaribWorldNews.

According to the report, the two employees were given only a
week's notice about their dismissal.

A representative declined to comment on the matter, the report
said.

The carrier, which is losing over US$100 million per year, was
also given until today by union officials to present a wage offer
to workers who are said to be restive over the slow pace of
negotiations for a new contract, CaribWorldNews
relates.

Air Jamaica may be up for privatization as Prime Minister Bruce
Golding said it is costing the country too much to maintain the
airline and that the government is looking to remove it from the
national budget, CaribWorldNews adds.

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 own Air Jamaica
permanently.

                          *     *     *

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.

On July 21, 2006, Standard & Poor's Rating Services assigned a
"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, based on the government's unconditional
guarantee of both principal and interest payments.


DYOLL GROUP: To Voluntarily Liquidate Assets
--------------------------------------------
Dyoll Group Limited's board decided to voluntarily liquidate the
firm during an emergency meeting on Jan. 31, 2008, Sabrina N.
Gordon at the Jamaica Gleaner reports.

As reported in the Troubled Company Reporter-Latin America on
Apil 4, 2007, Dyoll Group Chairperson Damien King said that the
main option available for the firm to correct its cash flow
problem is the liquidation of its remaining assets.  Mr. King
admitted that Dyoll Group has limited options to solve to its
financial woes.

The Dyoll Group's remaining asset is its coffee business through
holdings in Wataru and its real estate/property segment, The
Gleaner says.  Jamaican regulator Financial Services Commission
had took control of its insurance unit Dyoll Insurance Company in
early 2005 and placed that firm in liquidation.  Dyoll Insurance
had reportedly brought the Dyoll Group over 95% of revenues.

Dyoll Group's board said in a filing to the Jamaica Stock Exchange
that it will hold an extraordinary meeting for shareholders to
approve the wind-up petition to the Jamaican Supreme Court.

The Gleaner notes that the Dyoll Group's board meeting to approve
the winding-up of the company was initially scheduled for
Sept. 26, 2007.  It was delayed due to a lawsuit brought against
the group by joint liquidators John Lee of Jamaica and Ken Krys of
The Cayman Islands for overcharging on management fees billed to
its former unit, Dyoll Insurance Company, by J$117 million.  The
Jamaican Supreme Court has not released a decision on the mater.

The Gleaner relates that the Dyoll Group's last published
unaudited financials as of September 2006 indicated debts of just
under J$65 million.  The firm had an accumulated deficit of
J$82 million and negative working capital of J$32 million.

Meanwhile, Dyoll Group said in a filing with the Jamaica Stock
Exchange that it is not trading and wouldn't resume trading in the
Jamaica Stock Exchange future.  The Gleaner notes that the Jamaica
Stock Exchange suspended Dyoll Group for not filing its earnings
reports on time.  As of Feb. 6, Dyoll Group would have been 357
days or one week shy of a year late with its financials.

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


NAT'L COMMERCIAL: Net Profit Increases to J$1.86B in 1st Quarter
----------------------------------------------------------------
The National Commercial Bank Jamaica Limited's net profit rose 24%
to J$1.86 billion in the first quarter ended Dec. 31, 2007,
compared to J$1.5 billion in the same period ended
Dec. 31, 2006, mainly due to its retail banking division, The
Jamaica Gleaner reports.

According to The Gleaner, the National Commercial's revenues
increased to J$5.6 billion in the first quarter ended
Dec. 31, 2007, from J$5.2 billion in the year prior period.

The increase in the National Commericial's operating revenue in
the first quarter was due to a 28% growth in net fee and
commission income, The Gleaner says.  Meanwhile, the National
Commercial's total interest income rose by 11% in the first
quarter ended Dec. 31, 2007, compared to the same period in the
prior year.

The Gleaner notes that the National Commerical would pay a
dividend of 15 cents per share on Feb. 22 to shareholders on
record at Feb. 11.

The report says the National Commercial's loan portfolio increased
by J$4 billion to J$60 billion in the first quarter ended December
2007, compared to the same period ended
December 2006.

The National Commercial told The Gleaner that its improved
performance was due to continued concentration on core business
that resulted in higher earnings from its main operating segment.

According to the report, the National Commercial's retail banking
rose by 115% to J$849 million on operations on December 2007,
compared to December 2006.  Treasury brought in J$816 million and
wealth management J$563 million.

The Gleaner reports that corporate banking brought in
J$342 million to the National Commercial in the first quarter
ended December 2007, about 0.9% greater than the same quarter
ended December 2006.  The bank's insurance arm earned J$94
million, about 46% lesser and the only segment whose returns to
the National Commercial fell in the quarter.

The National Commercial's retail banking continues to be its main
revenue earner, bringing in J$849 million in operating profit for
the first quarter ended December 2007, about 115% greater than the
quarter ended December 2006, The Gleaner says.

Meanwhile, the National Commercial's NCB Capital Markets Limited
had an almost J$40-million drop in operating profit, earning
J$525 million, due to a J$73-million reduction in trading income.
It had a net profit of J$416.7 million in the first quarter 2008,
compared to the J$416.9 million it made in the same period in the
previous year, The Gleaner states.

Headquartered in Kingston, Jamaica, the National Commercial Bank
Jamaica Limited -- http://www.jncb.com/-- provides commercial
and retail banking, wealth management services.  The company's
services include personal banking, business banking, mortgage
loans, wealth management and insurance services.  Founded in
1977, the bank primarily operates in West Indies and the UK.

                         *     *     *

As reported in the Troubled Company Reporter-Latin America on
May 2, 2007, Fitch Ratings affirmed these ratings on Jamaica-
based National Commercial Bank Jamaica Limited: long-term
foreign and local currency Issuer Default at 'B+'; short-term
foreign and local currency rating at 'B'; individual at 'D'; and
support at 4.

The rating outlook on the bank's ratings is stable, in line with
Fitch's view of the sovereign's creditworthiness.

As reported in the Troubled Company Reporter-Latin America on
Dec. 18, 2006, Standard & Poor's Rating Services affirmed its
'B/B' counterparty credit and CD ratings on National Commercial
Bank Jamaica Ltd.  S&P said the outlook is stable.



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

AMERICAN AXLE: Net Loss Drops to US$25MM in Qrtr. Ended Dec. 31
---------------------------------------------------------------
American Axle & Manufacturing Holdings Inc. reported its financial
results for the fourth quarter and full year ended Dec. 31, 2007.

AAM reported a net loss of US$25.5 million in the fourth quarter
of 2007, compared to a net loss of US$188.6 million in the fourth
quarter of 2006.

AAM's earnings for the full year 2007 were US$37 million, compared
to a net loss of US$222.5 million in 2006.

In the third and fourth quarter of 2007, AAM recorded special
charges relating to a voluntary separation program accepted by
558 UAW represented associates at the Buffalo Gear, Axle & Linkage
facility in Buffalo, New York.  Production at this facility was
idled in December 2007.

Also in 2007, AAM incurred additional special charges and non-
recurring operating costs relating to other attrition programs,
asset impairments, the redeployment of machinery and equipment and
other actions to rationalize underutilized capacity.

In total, AAM's 2007 results reflect the impact of charges
amounting to US$88.4 million relating to these items, including
pension and other postretirement benefit curtailments and special
termination benefits.

In the fourth quarter of 2007, AAM recorded US$70.6 million of
these total restructuring charges.

AAM's full year 2007 earnings also reflect the impact of an
additional US$5.5 million charge for the write-off of unamortized
debt issuance costs and other costs related to the prepayment of
the US$250 million term loan due 2010.

"In 2007, AAM made excellent progress in our plan to achieve
sustainable market cost competitiveness in our global operations,"
Richard E. Dauch, AAM's co-founder, chairman of the board & CEO,
said.  "AAM has a strong balance sheet and will continue to focus
on the appropriate cost structure adjustments, technology
innovations, new business launches and an accelerated expansion of
our global manufacturing and sourcing footprint to gain momentum
in 2008.  We are excited about what AAM can, and will, accomplish
in what is sure to be a most difficult, demanding and tough year
for the entire domestic automotive industry."

                Liquidity and Capital Resources

As compared to the prior year, net cash or free cash flow provided
by operating activities for the full year 2007 nearly doubled to
US$367.9 million.  Capital spending for the full year 2007 was
US$186.5 million as compared to US$286.6 million in 2006.

Reflecting the impact of this activity and dividend payments of
US$31.8 million, AAM's free cash flow of US$149.6 million in 2007
represents an improvement of US$281.5 million as compared to the
full year 2006.

At Dec. 31, 2007, the company's balance sheet showed total assets
of US$2.91 billion, total liabilities US$2.02 billion, and total
stockholders' equity of US$0.89 billion.

          About American Axle & Manufacturing Holdings

Headquartered in Detroit, Michigan, American Axle & Manufacturing
Holdings Inc. (NYSE:AXL) -- http://www.aam.com/-- and its wholly
owned subsidiary, American Axle & Manufacturing, Inc.,
manufactures, engineers, designs and validates driveline and
drivetrain systems and related components and modules, chassis
systems and metal-formed products for light trucks, sport utility
vehicles and passenger cars.  In addition to locations in the
United States (in Michigan, New York and Ohio), the company also
has offices or facilities in Brazil, China, Germany, India, Japan,
Luxembourg, Mexico, Poland, South Korea and the United Kingdom.

                          *     *     *

As reported in the Troubled Company Reporter on Nov. 27, 2007,
Moody's Investors Service affirmed American Axle & Manufacturing
Holdings, Inc.'s Corporate Family rating of Ba3 as well as the
senior unsecured rating of Ba3 to American Axle & Manufacturing
Inc.'s notes and term loan.  At the same time, the rating agency
revised the rating outlook to stable from negative and renewed the
Speculative Grade Liquidity rating of SGL-1.


CALPINE CORP: CER's US$155 Million Bid for Hillabee Project Wins
----------------------------------------------------------------
Calpine Corporation has successfully completed a court-approved
bidding process for a partially completed power plant located near
Alexander City, Alabama (Hillabee Project).  Pursuant to an
auction sale held Feb. 5, 2008, CER Generation LLC, a subsidiary
of Constellation Energy, will pay approximately US$155 million for
the asset.  The auction was held as part of Calpine Corp.'s
recently completed Chapter 11 restructuring.

The auction resulted in bids that exceeded the initially-proposed
sale price of US$122.5 million as established by an Asset Purchase
Agreement dated Dec. 21, 2007, between Calpine's Hillabee Energy
Center, LLC affiliate and CER Generation.  The United States
Bankruptcy Court for the Southern District of New York has
approved the sale, which remains subject to final regulatory
approvals.

"The Hillabee Project was determined to be a non-strategic asset
in the context of our recent Chapter 11 restructuring," said
Calpine's Chief Executive Officer, Robert P. May.  "We are
extremely pleased with the success we have achieved with our
strategic divestiture program and are now moving forward with one
of the cleanest and most modern power generation fleets in the
nation."

The Hillabee Project is designed to be a clean and highly
efficient 774-megawatt combined-cycle generating facility driven
by two Siemens-Westinghouse 501G combustion turbines.  Calpine
initiated construction activities at the site in 2001 but
subsequently placed the project on hold due to adverse market
conditions.

                         About Calpine

Headquartered in San Jose, California, Calpine Corporation --
http://www.calpine.com/-- supplies customers and communities with
electricity from clean, efficient, natural gas-fired and
geothermal power plants.  Calpine owns, leases and operates
integrated systems of plants in 18 U.S. states and in three
Canadian provinces.  Its customized products and services include
wholesale and retail electricity, gas turbine components and
services, energy management and a wide range of power plant
engineering, construction and maintenance and operational
services.  The Company filed for chapter 11 protection on
Dec. 20, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-60200).  Richard
M. Cieri, Esq., Matthew A. Cantor, Esq., Edward Sassower, Esq.,
and Robert G. Burns, Esq., Kirkland & Ellis LLP represent the
Debtors in their restructuring efforts.  As of Dec. 19, 2005, the
Debtors listed US$26,628,755,663 in total assets and
US$22,535,577,121 in total liabilities.

Calpine Corporation's foreign non-debtor affiliate agreed to sell
its 45% interest in the 525-megawatt Valladolid III Power Plant,
currently under construction on the Yucatan Peninsula in Mexico.
Calpine is selling its equity interest to the two remaining
partners in the project, Mitsui & Co., Ltd. and Chubu Electric
Power Co., Inc., for a purchase price of approximately
US$43 million.

                         *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 5, 2008, Moody's Investors Service has affirmed the ratings
of Calpine Corporation, including the company's Corporate Family
Rating at B2 and the B2 rating assigned to the company's senior
secured term loan and revolving credit facility, following the
company's emergence from bankruptcy.  Moody's also assigned a
Speculative Grade Liquidity Rating of SGL-3.  Moody's rating
outlook is stable.


COMPLETE RETREATS: To Close 61 Chapter 11 Cases
-----------------------------------------------
Pursuant to Section 350(a) of the Bankruptcy Code, Complete
Retreats LLC and its debtor-affiliates ask the Hon. Alan H.W.
Shiff of the United States Bankruptcy Court for the District of
Connecticut to close the Chapter 11 cases of 61 debtor affiliates
effective as of the Effective Date of their First Amended Joint
Plan of Liquidation:

   Debtor                                           Case No.
   ------                                           --------
   Preferred Retreats, LLC                          06-50246
   LR Management Company, LLC                       06-50247
   New Retreats Holding Co., LLC                    06-50248
   T&H Villas, LLC                                  06-50249
   Town Clubs, LLC                                  06-50250
   Preferred Aviation, LLC                          06-50251
   Preferred Retreats Travel Company, LLC           06-50252
   Preferred Retreats Design Group, LLC             06-50253
   Private Retreats, LLC                            06-50254
   European Retreats, LLC                           06-50255
   Distinctive Retreats, LLC                        06-50256
   DR MGM I, LLC                                    06-50257
   DR MGM II, LLC                                   06-50258
   DR MGM III, LLC                                  06-50259
   DR MGM IV, LLC                                   06-50260
   Private Retreats Steamboat, LLC                  06-50261
   Private Retreats Steamboat II, LLC               06-50262
   Private Retreats Telluride I, LLC                06-50263
   Private Retreats Kamalani, LLC                   06-50264
   Private Retreats Tortuga, LLC                    06-50265
   Private Retreats Whitewing, LLC                  06-50266
   Private Retreats Belfair, LLC                    06-50267
   Private Retreats Cabin 4, LLC                    06-50268
   Private Retreats Cabin 8, LLC                    06-50269
   Private Retreats Colinas, LLC                    06-50270
   Private Retreats Yacht Club Tortola, LLC         06-50271
   Private Retreats Yacht Club Mediterranean LLC    06-50272
   Private Retreats Teton I, LLC                    06-50273
   Private Retreats Snake River I, LLC              06-50274
   Private Retreats Snake River II, LLC             06-50275
   Private Retreats Stowe II, LLC                   06-50276
   Private Retreats Stowe III, LLC                  06-50277
   Private Retreats Preserve Way, LLC               06-50278
   Private Retreats Highpoint, LLC                  06-50279
   Private Retreats Tortola, LLC                    06-50280
   Private Retreats Pinecone 305, LLC               06-50281
   Private Retreats Deer Valley I, LLC              06-50282
   Private Retreats Tahoe I, LLC                    06-50283
   Private Retreats Tahoe II, LLC                   06-50284
   Private Retreats Tahoe III, LLC                  06-50285
   Private Retreats Belize, LLC                     06-50286
   Preferred Retreats Hospitality, LLC              06-50287
   Private Retreats Powell II, LLC                  06-50288
   Private Retreats Powell III, LLC                 06-50289
   PR Esperanza II, LLC                             06-50290
   PR Esperanza III, LLC                            06-50291
   Olde Cypress I PR, LLC                           06-50292
   Olde Cypress II PR, LLC                          06-50293
   PR Vegas III, LLC                                06-50294
   A&K Destinations, LLC                            06-50295
   A&K Luxury Automobiles, LLC                      06-50296
   Bermuda Cliffs, LLC                              06-50297
   Private Retreats II, LLC                         06-50298
   Private Retreats Nevis, LLC                      06-50299
   Distinctive Retreats II, LLC                     06-50300
   Legendary Retreats, LLC                          06-50301
   Private Retreats Casa Dorada, LLC                06-50302
   Private Retreats Summit, LLC                     06-50303
   P180, LLC                                        06-50304
   DR Cerezas, LLC                                  06-50305
   Preferred Brokerage, LLC                         06-50306

In accordance with the terms of the Liquidation Plan, before the
Effective Date, all of the Debtors, except DR Abaco, were merged
into Complete Retreats.  DR Abaco, which owns real property in
the Bahamas, was not dissolved to facilitate the sale of the
Bahamas property by the liquidating trust created under the Plan.

The Plan became effective on Dec. 31, 2007, and all aspects
of the Debtors' bankruptcy cases, except for the cases of
Complete Retreats and DR Abaco, have been fully administered,
according to Jeffrey K. Daman, Esq., at Dechert, LLP, in
Hartford, Connecticut.

No further actions under the Plan are required of the Debtors,
and in fact, none of them continue to exist as corporate
entities, Mr. Daman says.  Thus, he asserts that entering a final
decree for all of the Debtors other than Complete Retreats and DR
Abaco, and closing the 61 bankruptcy cases, effective as of the
Effective Date, is warranted and justified and will benefit the
Debtors, their estates, their creditors, and other
parties-in-interest.

Mr. Daman informs Judge Shiff that the Liquidating Trust has not
yet completed distributions pursuant to the Plan.

                     About Complete Retreats

Headquartered in Westport, Connecticut, Complete Retreats LLC
operates five-star hospitality and real estate management
businesses.  In addition to its mainline destination club
business, the Debtor also operates an air travel program for
destination club members, a villa business, luxury car rental
services, wine sales services, fine art sales program, and other
amenity programs for members.

Complete Retreats and its debtor-affiliates filed for chapter 11
protection on July 23, 2006 (Bankr. D. Conn. Case No. 06-50245).
Nicholas H. Mancuso, Esq. and Jeffrey K. Daman, Esq. at Dechert
LLP represent the Debtors in their restructuring efforts.
Michael J. Reilly, Esq., at Bingham McCutchen LP, in Hartford,
Connecticut, serves as counsel to the Official Committee of
Unsecured Creditors.  No estimated assets have been listed in the
Debtors' schedules, however, the Debtors disclosed US$308,000,000
in total debts.

(Complete Retreats Bankruptcy News, Issue No. 41; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000).


CROWN HOLDINGS: Earns $343 Million in 2007 Fourth Quarter
---------------------------------------------------------
Crown Holdings Inc. reported net income from continuing operations
of US$343.0 million for the fourth quarter ended
Dec. 31, 2007, compared to net income from continuing operations
of US$168.0 million in the fourth quarter of 2006.

Included within net income from continuing operations in the 2007
fourth quarter is a net gain of US$324.0 million.  The net gain
reflects a US$479.0 million benefit related to the reversal of
valuation allowances on the company's U.S. deferred tax assets
partially offset by a net charge of US$7.0 million to settle
retiree medical litigation and a supplier dispute, a
US$29.0 million net charge for asbestos, a US$5.0 million net
charge related to restructuring actions and a US$114.0 million net
impairment charge, primarily to write-off goodwill.

In the 2006 fourth quarter, the company recorded a net gain of
US$146.0 million to record gains on sales of assets and the
reversal of a tax balance in comprehensive income, partially
offset by provisions for asbestos, the remeasurement of foreign
currency exposures and an impairment charge recorded in the
company's plastic bottle joint venture.

Net sales in the fourth quarter increased to US$1.87 billion, an
11.6% increase over the US$1.68 billion in the fourth quarter of
2006.  The increase in sales was attributable to higher sales unit
volumes, the pass-through of higher raw material costs and
favorable foreign currency translation.

Fourth quarter gross profit rose 7.5% to US$214.0 million over the
US$199.0 million in the 2006 fourth quarter.  As a percentage of
net sales, gross profit was 11.4% in the fourth quarter compared
to 11.9% in the same quarter last year.  The decline in percentage
margin was attributable to the impact of passing through higher
raw material costs partially offset by stronger sales unit
volumes, increased operating efficiencies and productivity gains.

Selling and administrative expense in the fourth quarter was
US$100.0 million compared to US$84.0 million in last year's fourth
quarter.  The increase reflects a higher accrual for incentive
compensation costs, foreign currency translation and general
inflationary increases.

Segment income, a non-GAAP measure defined by the company as gross
profit less selling and administrative expense, was
US$114.0 million in the fourth quarter after the settlement
charges of US$7.0 million, down US$1.0 million or 0.9% compared to
the US$115.0 million in the 2006 fourth quarter.  Segment income
as a percentage of net sales was 6.1% in the fourth quarter of
2007 compared to 6.9% in the fourth quarter of 2006.  Excluding
the settlement charges, segment income in the fourth quarter of
2007 was US$121.0 million or 5.2% greater than the fourth quarter
of 2006.

Commenting on the results, John W. Conway, chairman and chief
executive officer, stated, "We are very pleased with our overall
2007 performance.  Worldwide volumes were good despite the impact
of poor weather on our European food can business.  Our
significant beverage can growth initiatives in emerging markets
remained on plan and delivered increasingly positive
contributions.  Importantly, in 2007, the company improved gross
profit by more than 15.0% and generated strong free cash flow.
Looking ahead, we expect the positive momentum to continue in
2008."

Interest expense in the fourth quarter was US$86.0 million
compared to US$76.0 million in the fourth quarter of 2006.  The
increase reflects the impact of higher average short-term
borrowing rates and foreign currency translation.

During the fourth quarter of 2007, the company determined that it
considered it more likely than not that the majority of its U.S.
deferred tax assets would be realized through future income from
operations.  Accordingly, an income tax benefit of
US$479.0 million  was recorded for the reversal of previously
established valuation allowances.  The reversal of the valuation
allowance has no impact on taxes paid.  In the 2006 fourth
quarter, the company recorded an income tax benefit of US$121.0
million related to the reversal of a previously established
adjustment to accumulated comprehensive income arising from the
company's U.S. minimum pension liability.

Net debt decreased by US$435.0 million from Sept. 30, primarily as
a result of the reduction in working capital during the fourth
quarter.  Net debt at Dec. 31, 2007, was US$2.98 billion,
US$154.0 million lower than the Dec. 31, 2006, level as free cash
flow for 2007 more than offset common share repurchases of
US$118.0 million and foreign exchange translation on net debt of
US$89.0 million.

                        Full Year Results

For 2007, net sales rose to US$7.73 billion, up 10.7% over the
US$6.98 billion in 2006.  The increase reflects higher sales unit
volumes, the pass-through of higher raw material costs and foreign
currency translation.  Approximately, 73.0% of net sales were from
outside the United States in 2007 compared to 72.0% in 2006.

Gross profit for the year of US$1.03 billion, or 13.3% of net
sales, increased 15.1% compared to US$892.0 million of gross
profit, or 12.8% of net sales for 2006.  The increase was driven
by stronger sales unit volumes, increased operating efficiencies
and productivity gains.

Selling and administrative expense for 2007 was US$385.0 million
compared to US$316.0 million in 2006.  The increase is
attributable to a higher accrual for incentive compensation costs,
foreign currency translation and general inflationary increases.

Segment income in 2007, after the US$7.0 million charge to settle
retiree medical benefits and a supplier dispute, increased 11.5%
to US$642.0 million over the US$576.0 million in 2006.  Segment
income as a percentage of net sales was 8.3% in 2007 compared to
8.2% in 2006.  Excluding the settlement charges, segment income
for 2007 grew to US$649.0 million and was 12.7% over 2006 segment
income.

Interest expense was US$318.0 million in 2007 compared to
US$286.0 million in 2006.  The increase reflects higher average
short-term borrowing rates and foreign currency translation in
2007 compared to 2006.

For 2007, the company reported net income from continuing
operations of US$545.0 million, compared to net income from
continuing operations of US$342.0 million in 2006.

                         Balance Sheet

At Dec. 31, 2007, the company's consolidated balance sheet showed
US$7.00 billion in total assets, US$6.96 billion in total
liabilities, and $37.0 million in total shareholders' equity.

                    About Crown Holdings Inc.

Based in Philadelphia, Pennsylvania, Crown Holdings Inc. (NYSE:
CCK) -- http://www.crowncork.com/-- through its subsidiaries, is
a supplier of packaging products to consumer marketing companies
around the world.

                          *     *     *

Crown Holdings still carries Fitch's 'B+' long term issuer default
rating assigned on July 18, 2006.  Outlook is Stable.


ENERSYS INC: Earns US$16 Million in Third Fiscal Quarter 2008
-------------------------------------------------------------
EnerSys disclosed its financial results for the third fiscal
quarter of 2008.  Net earnings for the third fiscal quarter of
2008 were up 46% and, on a non-GAAP adjusted basis, were up 89%
when compared to the comparable prior year amounts.

Net earnings for the third fiscal quarter of 2008 were
US$16 million which includes an unfavorable US$0.02 per share
impact from the US$0.8 million (US$1.1 million pre-tax) charge for
the continuation of the previously disclosed European
restructuring plan and US$0.2 million (US$0.3 million pre-tax) of
professional fees related to a shelf registration and a secondary
stock offering.  Excluding these highlighted charges in the third
fiscal quarter of 2008, non-GAAP adjusted net earnings were
US$17million and exceeded the previous guidance of US$0.25 -
US$0.29 per diluted share provided on Nov. 7, 2007.  The previous
guidance also excluded the unfavorable impact of the highlighted
charges.

Net earnings in the third fiscal quarter of the prior year were
US$11.0 million which included US$2 million favorable impact from
a non-recurring tax benefit.  Excluding he highlighted credits,
non-GAAP adjusted net earnings for the third fiscal quarter of the
prior year were US$9 million.

Net sales for the third fiscal quarter of 2008 were
US$553.4 million compared to US$377.9 million in the comparable
period of the prior year, or an increase of 46%.

Net earnings for the nine fiscal months of 2008 were up 16% and,
on a non- GAAP adjusted basis, were up 58% when compared to the
comparable prior year amounts.

Net earnings for the nine fiscal months of 2008 were
US$40.2 million including an unfavorable US$0.17 per share impact
from the US$8 million (US$11.4 million pre-tax) charge for the
European restructuring plan and US$0.3 million (US$0.4 million
pre-tax) of professional fees related to a shelf registration and
two secondary stock offerings.  Excluding the highlighted charges,
non-GAAP adjusted net earnings for the nine fiscal months of 2008
were US$48.5 million.

Net earnings in the nine fiscal months of the prior year were
US$34.6 million which included US$2.6 million (US$3.8 million pre-
tax) favorable impact from legal settlements and US$2.0 million
favorable impact from a non-recurring tax benefit, partially
offset by the unfavorable impact of US$0.6 million (US$0.8 million
pre-tax) from professional fees related to a shelf registration
and an abandoned acquisition.  Excluding the highlighted charges
and credits, non-GAAP adjusted net earnings for the nine fiscal
months of the prior year were US$30.6 million.

Net sales for the nine fiscal months of 2008 were US$1.44 billion
compared to US$1.09 billion in the prior year, or an increase of
32%.

"We continued to experience record sales and operating earnings in
our third fiscal quarter as a result of strong demand for our
products and services, and we believe that we increased our global
market share," stated chairperson, president and chief executive
officer, John D. Craig.  "Our pricing recovery efforts to offset
the increased commodity costs, especially lead, remain a primary
focus of our organization, coupled with our on-going cost
reduction efforts.  As we have noted previously, it will take some
time for our pricing recovery efforts to fully offset the
increased costs we have experienced."

Mr. Craig added, "We anticipate that adjusted diluted net earnings
per share for our fourth fiscal quarter of 2008 will be between
US$0.31 and US$0.35, which excludes the expected additional
European restructuring charges, as described in our press release
of May 23, 2007, of approximately US$1.6 million pre-tax or
US$0.02 per share."

                         About EnerSys

EnerSys Inc. -- http://www.enersys.com/-- (NYSE: ENS)
manufactures industrial battery through 21 manufacturing and
assembly facilities worldwide.  Headquartered in Reading,
Pennsylvania, the company is uniquely positioned to provide
expertise in designing, building, installing and maintaining a
comprehensive stored energy solution for industrial applications
throughout the world.  The company's products and services are
focused on two primary markets: Motive Power (North & South
America) or (Europe) and Reserve Power (Worldwide), (Aerospace &
Defense) or (Speciality Batteries).  The company's facilities are
located at China, France, Mexico, Germany, and the United Kingdom,
among others.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
May 21, 2007, Standard & Poor's Ratings Services revised its
outlook on industrial battery manufacturer EnerSys to stable from
negative.  Standard & Poor's also affirmed all its ratings on the
company, including its 'BB' corporate credit rating.


INTERSTATE HOTELS: Closes Hotel Buyout Deal With Blackstone Group
-----------------------------------------------------------------
In a joint venture with Harte Holdings, Interstate Hotels &
Resorts has completed the previously announced acquisition of four
hotels from affiliates of The Blackstone Group for an aggregate
price of US$207.8 million.  Interstate Hotels invested
approximately US$11.5 million for a 20 percent equity interest in
the four hotels. The company funded the acquisition with available
cash and capacity under its senior revolving credit facility.

The four properties included in the joint venture acquisition are:

   Property                     Rooms     Location
   --------                     -----     --------
Sheraton Frazer Great Valley    198     Frazer, Philadelphia
Sheraton Mahwah                 225     Mahwah, New Jersey
Latham Hotel Georgetown         142     Washington, DC
Hilton Lafayette                327     Lafayette, Los Angeles
                                -----
                          Total: 892

Interstate manages all four hotels under new management
agreements.

                     About Harte Holdings

Harte Holdings is a Cork, Ireland-based investment and development
company which owns a wide variety of real estate projects in the
United Kingdom, Ireland and mainland Europe, with a portfolio
consisting primarily of hotels, residential, commercial and retail
assets in these areas.

                    About Interstate Hotels

Headquartered in Arlington, Virginia, Interstate Hotels & Resorts
Inc. (NYSE: IHR)-- http://www.ihrco.com/-- as of
Dec. 31, 2007, Interstate Hotels & Resorts owned seven hotels and
had a minority ownership interest through separate joint ventures
in 26 hotels and resorts.  Together with these properties, the
company and its affiliates manages a total of 191 hospitality
properties with more than 44,000 rooms in 36 states, the District
of Columbia, Belgium, Canada, Ireland, Mexico and Russia.
Interstate Hotels & Resorts also has contracts to manage 17
hospitality properties with approximately 4,800 rooms currently
under construction.

                          *     *     *

Interstate Hotels & Resorts Inc. continues to carry Moody's
Investor Services' 'B1' long-term corporate family rating, which
was placed in January 2007.  Moody's said the rating's outlook is
negative.


RESIDENTIAL CAPITAL: Moody's Downgrades Sr. Debt Rating to 'B2'
---------------------------------------------------------------
Moody's Investors Service downgraded to B2, from Ba3, its ratings
on the senior debt of Residential Capital, LLC (ResCap).
Separately, the senior unsecured rating of GMAC LLC was downgraded
to B1 from Ba3.  The rating outlook for both firms is negative.

The downgrade reflects:

  1) a decline in the company's liquidity profile;

  2) the risk that ResCap's net worth could fall below its
     minimum net worth covenant in the absence of support from
     its parent, which support is not assured; and,

  3) Moody's belief that ResCap's franchise is impaired.

In general the company's liquidity is ak due to its high
concentration of secured market funding and therefore very low
level of unencumbered assets.  This position leaves the company
vulnerable to disruptions in the wholesale markets.  The previous
rating had anticipated that ResCap would increase its reliance on
deposits and Federal Home Loan Bank advances by originating more
assets in its bank subsidiary.  However this has not occurred and
the migration to bank funding is uncertain.

Additionally, short term liquidity concerns had been mitigated by
the company's buildup of a sizable cash balance of US$6.5 billion
at Sept. 30, 2007.  This balance declined by US$2.1 billion in the
fourth quarter primary due to the company being unable to sell
certain international residential mortgage inventory. Of the
US$4.4 billion cash balance at Dec. 31, 2007, US$1.4 billion is in
the company's bank subsidiary and unavailable to service unsecured
maturities.   Moody's considers this cash balance decrease to
represent a substantial decline in the company's contingent
liquidity profile.

ResCap recorded a US$921 million loss in Q407, representing its
fifth consecutive quarterly loss.  During the quarter the company
received a US$1.1 billion capital benefit from its parent, GMAC,
through GMAC purchasing ResCap debt in the open market below par
and subsequently contributing this debt to ResCap at which point
it was retired.  This capital benefit prevented the company from
violating its minimum net worth covenant of US$5.4 billion at Dec.
31, 2007.  Moody's believes ResCap is likely to incur additional
losses over the coming quarters, possibly at a level that would
reduce capital below its minimum net worth covenant.

The non-performing level of ResCap's held-for-investment portfolio
continues to be well above its rated peer group across loan types,
and Moody's considers its loan loss allowance to be low at 23% of
nonaccrual loans at Dec. 31, 2007.  Additionally, it is unclear
what level of reserving will be required for repurchase
requirements and other contingent liabilities in the coming
quarters.  If ResCap's losses would result in the company
violating its minimum net worth covenant, there is no guarantee
that its parent, GMAC, or its ultimate parents, General Motors and
Cerberus Capital Management, would provide the support required to
avoid a covenant violation.  Moody's has come to believe that
ResCap's parents may have a limited tolerance for supporting
ResCap if ResCap's performance and condition fail to meet
management's expectations for improvement during the first half of
2008.  GMAC's further support of ResCap could result in additional
strains on its capital and liquidity positions.  In relation to
this, creditors' appetite to extend credit to GMAC beyond current
commitments could be affected by GMAC's continued willingness to
provide support to ResCap.

"Beyond the horizon of the first half of 2008, we believe further
support from ResCap's parents will become increasing less certain,
as continued underperformance on the part of ResCap could signal a
failure of the firm to regain solid footing," said Moody's Vice
President Craig Emrick.

Finally, Moody's believes ResCap's franchise has been impaired.
"We consider ResCap to have a weak competitive position in the US
mortgage sector where all of its major competitors can rely on
robust retail origination channels, low cost deposit funding, and
earnings diversity," said Mr. Emrick.  Moody's believes the
company's ability to gain market share and return to robust
profitability is limited.

Downgrades:

Issuer: Residential Capital, LLC

  -- Multiple Seniority Shelf, Downgraded to a range of (P)B3 to
     (P)B2 from a range of (P)B1 to (P)Ba3

  -- Subordinate Regular Bond/Debenture, Downgraded to B3 from
     B1

  -- Senior Unsecured Regular Bond/Debenture, Downgraded to B2
     from Ba3

Issuer: Residential Funding of Canada Finance ULC

  -- Senior Unsecured Regular Bond/Debenture, Downgraded to B2
     from Ba3

ResCap is a subsidiary or GMAC LLC and is headquartered in
Minneapolis, Minnesota.  Rescap reported equity of US$6.0 billion
at Dec. 31, 2007.  ReCap has operations in Mexico.



=================
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P A N A M A
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P A R A G U A Y
===============



=======
P E R U
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CABLE & WIRELESS: Names Tony Bromfield as New Unit CEO
------------------------------------------------------
The CaribWorldNews reports that Cable & Wireless Plc has appointed
Tony Bromfield as its chief executive officer for Caribbean and
Americas, replacing Chris Hetherington.

Telegraph.co.uk relates that Mr. Hetherington had been chief
executive officer for 18 months when he was replaced.  He
supervised 14 businesses with combined revenues of 800 million
pounds, contributing to Cable & Wireless International's 1.2-pound
turnover.  He was also a board member of Cable & Wireless
International, which Cable & Wireless will consider demerging from
its two-billion pound turnover UK division in 2008.

Mr. Bromfield, who will replace Mr. Hetherington as chief
executive officer, had worked with John Pluthero, who is running
Cable & Wireless International, as Energis' head of operations,
The Gleaner notes.  Cable & Wireless acquired fixed-line phone
service provider Energis in 2005.

According to Financial Times, Cable & Wireless also dismissed
Cable & Wireless International's chief technology officer Frank
Mount.  Ken McFadyen, another former Energis official, will take
his place.  Telegraph.co.uk adds that Mr. McFadyen will join the
Cable & Wireless International board this April.

An analyst commented to Telegraph.co.uk that Messrs. Bromfield and
McFadyen are guys who Mr. Pluthero has worked with and "knows
they'll deliver."

The appointment of new officials would be an opening move in Mr.
Pluthero's efforts to turn around the international division,
which offers mobile, broadband, and domestic and international
fixed-line services principally in the Caribbean, Panama, Macau,
Monaco and the Channel Islands, Financial Times states.

Headquartered in London, Cable & Wireless Plc --
http://www.cw.com/new/-- provides voice, data and IP (Internet
Protocol) services to business and residential customers, as
well as services to other telecoms carriers, mobile operators
and providers of content, applications and Internet services.
The company has operations are in the United Kingdom, India,
China, the Cayman Islands and the Middle East.

                         *     *     *

In April 2007, in connection with the implementation of its new
Probability-of-Default and Loss-Given-Default rating methodology
for the corporate families in the Telecommunications, Media and
technology sector, Moody's Investors Service confirmed its Ba3
Corporate Family Rating for Cable & Wireless Plc.

Moody's also assigned a Ba3 Probability-of-Default rating to the
company.


QUEBECOR WORLD: BP Canada Wants to End Gas Supply to U.S. Plants
----------------------------------------------------------------
Craig W. Wolfe, Esq., at Kelley Drye & Warren, LLP, in New York,
notes that Quebecor World Inc. and its debtor-affiliates are
seeking to compel BP Canada Energy Marketing Corp., BP Energy
Company, and IGI Resources Inc., to continue to provide natural
gas to the Debtors' printing facilities in the United States under
three separate base contracts.

Mr. Wolfe asserts that the Debtors' request should be denied as
it relates to BP Canada, BPEC and IGI.  He argues that BP Canada,
BPEC and IGI are not "utilities," and are thus not subject to
Section 366 of the Bankruptcy Code.

Section 366 does not define "utility," Mr. Wolfe notes.  However,
he points out that the legislative history of Section 366
indicates that Congress intended the statute to apply only to
those "utilities," which have a special position with respect to
the debtor.  He further notes that utilities may include "an
electric company, gas supplier, or telephone company that is a
monopoly in the are so the debtor cannot easily obtain comparable
services from another utility."

Mr. Wolfe asserts that BP Canada, BPEC and IGI do not have a
monopoly over the sale of natural gas to the Debtors.  There are
numerous other providers of natural gas that are available to the
Debtors, including the local distribution company, he points out.

Mr. Wolfe also argues that Section 556 expressly prohibits any
injunction that seeks to compel BP Canada, et al., to sell
natural gas to the Debtors because the controlling Base Contracts
are forward contracts.  Section 556 provides, among other things,
that neither the automatic stay nor an "order of a court in any
proceeding under this title," which includes granting the
injunction, apply to contracts between a debtor and a forward
contract merchant under a forward contract, he notes.

                          *     *     *

The Bankruptcy Court prohibits the Utility Providers, in the
interim, to discontinue, alter or refuse service on account of any
unpaid prepetition charges, or require additional assurance of
payment other than the proposed Adequate Assurance pending final
order.

Any Utility Provider who objects to the proposed Adequate
Assurance Procedures must file an objection on or before
Feb. 12, 2008.  Utility Providers who do not timely file an
objection will be deemed to consent to the proposed procedures and
will be bond by those procedures.

The Court will convene a hearing on February 21 to consider final
approval of the proposed Adequate Assurance Procedures.

For purposes of the Interim Order, BP Canada, BPEC, IGI, BP
Energy Marketing Corp., and National Fuel Resources Inc., will
be excluded from the definition of Utility Provider.

                          About BP Canada

Headquartered in Calgary, Alberta, BP Canada Energy Company is an
affiliate of London-based BP p.l.c. -- http://www.bp.com/-- is a
holding company and employs around 1,500 Canadians.  BP plc
operates through three business segments: Exploration and
Production, Refining and Marketing and Gas, Power and Renewables.
Exploration and Production's activities include oil and natural
gas exploration, development and production (upstream activities),
together with related pipeline, transportation and processing
activities (midstream activities).  The activities of Refining and
Marketing include oil supply and trading and the manufacture and
marketing of petroleum products, including aromatics and acetyls,
as well as refining and marketing.  Gas, Power and Renewables
activities include marketing and trading of gas and power;
marketing of liquefied natural gas (LNG); natural gas liquids
(NGLs), and low-carbon power generation through its Alternative
Energy business.  BP has operations in Europe, the United States,
Canada, Russia, South America, Australasia, Asia and parts of
Africa.  In August 2006, it acquired Greenlight Enery, Inc.

                      About Quebecor World

Based in Montreal, Quebec, Quebecor World Inc. (TSX: IQW) (NYSE:
IQW), -- http://www.quebecorworldinc.com/-- provides market
solutions, including marketing and advertising activities, well as
print solutions to retailers, branded goods companies, catalogers
and to publishers of magazines, books and other printed media.  It
has 127 printing and related facilities located in North America,
Europe, Latin America and Asia.  In the United States, it has 82
facilities in 30 states, and is engaged in the printing of books,
magazines, directories, retail inserts, catalogs and direct mail.
In Canada it has 17 facilities in five provinces, through which it
offers a mix of printed products and related value-added services
to the Canadian market and internationally.

The company is an independent commercial printer in Europe with
19 facilities, operating in Austria, Belgium, Finland, France,
Spain, Sweden, Switzerland and the United Kingdom.  In March 2007,
it sold its facility in Lille, France.  Quebecor World (USA) Inc.
is its wholly owned subsidiary.

Quebecor World and 53 of its subsidiaries, including those in
Canada, filed a petition under the Companies' Creditors
Arrangement Act before the Superior Court of Quebec, Commercial
Division, in Montreal, Canada, on Jan. 20, 2008.  The Honorable
Justice Robert Mongeon oversees the CCAA case.  Francois-David
Pare, Esq., at Ogilvy Renault, LLP, represents the Company in the
CCAA case.  They obtained creditor protection until Feb. 20, 2008.
Ernst & Young Inc. was appointed as Monitor.

On Jan. 21, 2008, Quebecor World (USA) Inc., its U.S.
subsidiary, along with other U.S. affiliates, filed for chapter
11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No.
08-10152).  Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP
represents the Debtors in their restructuring efforts.

Based in Corby, Northamptonshire, Quebecor World PLC --
http://www.quebecorworldplc.com/-- is the U.K. subsidiary of
Quebecor World Inc. that specializes in web offset magazines,
catalogues and specialty print products for marketing and
advertising campaigns.  The company employs around 290 people.
Quebecor PLC was placed into administration with Ian Best and
David Duggins of Ernst & Young LLP appointed as joint
administrators effective Jan. 28, 2008.

As of Sept. 30, 2007, Quebecor World's unaudited consolidated
balance sheet showed total assets of US$5,554,900,000, total
liabilities of US$3,964,800,000, preferred shares of
US$175,900,000, and total shareholders' equity of
US$1,414,200,000.  The company has until May 20, 2008, to file a
plan of reorganization in the Chapter 11 case.  (Quebecor World
Bankruptcy News, Issue No. 3; Bankruptcy Creditors' Service,
Inc.,http://bankrupt.com/newsstand/or 215/945-7000)


QUEBECOR WORLD: Can File Schedules and Statements Until March 5
---------------------------------------------------------------
At the Debtors' behest, the U.S. Bankruptcy Court for the Southern
District of New York extends until March 5, 2008, the deadline by
which the Debtors will file their schedules of assets and
liabilities, schedules of current income and expenditures,
schedules of executory contracts and unexpired leases, and
statements of financial affairs.

Proposed counsel to the Debtors, Michael J. Canning, Esq., at
Arnold & Porter LLP, in New York, says the the 30-day extension
is needed since the Debtors maintain voluminous books and records
and complex accounting systems with which certain prepetition
invoices have not yet been received, or entered into the Debtors'
financial accounting systems.

                      About Quebecor World

Based in Montreal, Quebec, Quebecor World Inc. (TSX: IQW) (NYSE:
IQW), -- http://www.quebecorworldinc.com/-- provides market
solutions, including marketing and advertising activities, well as
print solutions to retailers, branded goods companies, catalogers
and to publishers of magazines, books and other printed media.  It
has 127 printing and related facilities located in North America,
Europe, Latin America and Asia.  In the United States, it has 82
facilities in 30 states, and is engaged in the printing of books,
magazines, directories, retail inserts, catalogs and direct mail.
In Canada it has 17 facilities in five provinces, through which it
offers a mix of printed products and related value-added services
to the Canadian market and internationally.

The company is an independent commercial printer in Europe with
19 facilities, operating in Austria, Belgium, Finland, France,
Spain, Sweden, Switzerland and the United Kingdom.  In March 2007,
it sold its facility in Lille, France.  Quebecor World (USA) Inc.
is its wholly owned subsidiary.

Quebecor World and 53 of its subsidiaries, including those in
Canada, filed a petition under the Companies' Creditors
Arrangement Act before the Superior Court of Quebec, Commercial
Division, in Montreal, Canada, on Jan. 20, 2008.  The Honorable
Justice Robert Mongeon oversees the CCAA case.  Francois-David
Pare, Esq., at Ogilvy Renault, LLP, represents the Company in the
CCAA case.  They obtained creditor protection until
Feb. 20, 2008.  Ernst & Young Inc. was appointed as Monitor.

On Jan. 21, 2008, Quebecor World (USA) Inc., its U.S.
subsidiary, along with other U.S. affiliates, filed for chapter
11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No.
08-10152).  Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP
represents the Debtors in their restructuring efforts.

Based in Corby, Northamptonshire, Quebecor World PLC --
http://www.quebecorworldplc.com/-- is the U.K. subsidiary of
Quebecor World Inc. that specializes in web offset magazines,
catalogues and specialty print products for marketing and
advertising campaigns.  The company employs around 290 people.
Quebecor PLC was placed into administration with Ian Best and
David Duggins of Ernst & Young LLP appointed as joint
administrators effective Jan. 28, 2008.

As of Sept. 30, 2007, Quebecor World's unaudited consolidated
balance sheet showed total assets of US$5,554,900,000, total
liabilities of US$3,964,800,000, preferred shares of
US$175,900,000, and total shareholders' equity of
US$1,414,200,000.  The company has until May 20, 2008, to file a
plan of reorganization in the Chapter 11 case.  (Quebecor World
Bankruptcy News, Issue No. 3; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


QUEBECOR WORLD: CEP Graphical Seeks Discussion of Financial Woes
----------------------------------------------------------------
Canada's largest printing union, CEP Graphical, asked for a
meeting with Quebecor World Inc., executives to discuss the
financial crisis that forced the commercial printer to seek
creditor protection, The Canadian Press reported.

"The current financial crisis at Quebecor World is a major
concern to all Quebecor World employees, including CEP members
and their families," says Duncan Brown, National Director of CEP
Graphical.

"The CEP and our members are committed to the continuing
viability of the company; but the lack of communication and
information has been a problem, thus we are seeking to meet with
company executives to discuss the current situation, its
implications and the solutions."

The union representing workers at Quebecor plants in Europe, UNI
Graphical, has also asked to meet with company brass, the
Canadian Press said.

CEP National President Dave Coles said, "Although there may be
problems in some markets, overall this appears to be a banking
crisis, rather than a business crisis."

CEP, the Communications, Energy and Paperworkers Union of Canada,
represents 150,000 Canadian workers in several key parts of the
economy, including more than 25,000 newspaper, broadcast, film and
printing industry workers.

                      About Quebecor World

Based in Montreal, Quebec, Quebecor World Inc. (TSX: IQW) (NYSE:
IQW), -- http://www.quebecorworldinc.com/-- provides market
solutions, including marketing and advertising activities, well as
print solutions to retailers, branded goods companies, catalogers
and to publishers of magazines, books and other printed media.  It
has 127 printing and related facilities located in North America,
Europe, Latin America and Asia.  In the United States, it has 82
facilities in 30 states, and is engaged in the printing of books,
magazines, directories, retail inserts, catalogs and direct mail.
In Canada it has 17 facilities in five provinces, through which it
offers a mix of printed products and related value-added services
to the Canadian market and internationally.

The company is an independent commercial printer in Europe with
19 facilities, operating in Austria, Belgium, Finland, France,
Spain, Sweden, Switzerland and the United Kingdom.  In March 2007,
it sold its facility in Lille, France.  Quebecor World (USA) Inc.
is its wholly owned subsidiary.

Quebecor World and 53 of its subsidiaries, including those in
Canada, filed a petition under the Companies' Creditors
Arrangement Act before the Superior Court of Quebec, Commercial
Division, in Montreal, Canada, on Jan. 20, 2008.  The Honorable
Justice Robert Mongeon oversees the CCAA case.  Francois-David
Pare, Esq., at Ogilvy Renault, LLP, represents the Company in the
CCAA case.  They obtained creditor protection until Feb. 20, 2008.
Ernst & Young Inc. was appointed as Monitor.

On Jan. 21, 2008, Quebecor World (USA) Inc., its U.S.
subsidiary, along with other U.S. affiliates, filed for chapter
11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No.
08-10152).  Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP
represents the Debtors in their restructuring efforts.

Based in Corby, Northamptonshire, Quebecor World PLC --
http://www.quebecorworldplc.com/-- is the U.K. subsidiary of
Quebecor World Inc. that specializes in web offset magazines,
catalogues and specialty print products for marketing and
advertising campaigns.  The company employs around 290 people.
Quebecor PLC was placed into administration with Ian Best and
David Duggins of Ernst & Young LLP appointed as joint
administrators effective Jan. 28, 2008.

As of Sept. 30, 2007, Quebecor World's unaudited consolidated
balance sheet showed total assets of US$5,554,900,000, total
liabilities of US$3,964,800,000, preferred shares of
US$175,900,000, and total shareholders' equity of
US$1,414,200,000.  The company has until May 20, 2008, to file a
plan of reorganization in the Chapter 11 case.  (Quebecor World
Bankruptcy News, Issue No. 4; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


* PERU: US Drop Dollar May Help in Debt Payment, Moody's Says
-------------------------------------------------------------
Latin American countries including Colombia, Peru, Uruguay and
Brazil would benefit from the depreciating U.S. dollar by making
it easier for them to repay U.S. dollar-denominated debt as the
value of such debt is reduced, according to a Moody's Investors
Service report cited by Bloomberg News.

"For countries with large dollar debt, it could be some kind of
tail wind," Bloomberg News cited Dietmar Hornung, vice president
and senior analyst in Frankfurt for Moody's, as saying.

However, Kevin Plumberg of Reuters News relates, citing the same
Moody's report, that further decline of the greenback could hurt
trade competitiveness, increase inflation in countries with
currencies pegged to the dollar, and weigh on the value of huge
storehouses of foreign exchange reserves.

According to Reuters, the dollar has fallen 22 percent in the last
six years pressured by the large U.S. current account deficit,
steady diversification of reserves by central banks out of
dollars, and solid global economic growth.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Jan. 16, 2008, Fitch assigned BB+ Long-Term Issuer Default
Rating and B Short-Term Issuer Default Rating to Peru.  Fitch
said the rating outlook is stable.

As reported on Dec. 26, 2007, Standard & Poor's Ratings Services
assigned BB+ long-term currency rating on Peru.



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

ELECTRONIC DATA: Earns US$189 Million in Fourth Quarter 2007
------------------------------------------------------------
Electronic Data Services has reported fourth quarter 2007 adjusted
net income of US$295 million versus fourth quarter 2006 adjusted
net income of US$254 million.  Fourth quarter 2007 net income, in
accordance with U.S. GAAP, was US$189 million versus
US$217 million in the prior year's fourth quarter.

Fourth quarter revenue increased 2 percent to US$5.83 billion from
US$5.70 billion in the year-ago quarter(1).  Fourth quarter
revenue decreased 3 percent on an organic basis, which excludes
the impact of currency fluctuations, acquisitions and
divestitures.

"EDS posted a solid fourth quarter to end a year of operational
progress in 2007," said Electronic Data chairperson, president and
Chief Executive Officer, Ron Rittenmeyer.  "We continued to
improve our  competitiveness and made progress toward our
financial goals."

The company signed US$6.1 billion in contracts in the fourth
quarter 2007 versus US$7.6 billion in the year-ago quarter. Fourth
quarter 2007 signings included seven contracts with values greater
than US$100 million.

Second-half 2007 total contract value was US$11.8 billion,
representing the company's best second-half signings' performance
since 2001, and the overall 2008 sales pipeline is up 10 percent
versus the year-ago period, showing strength in both IT
outsourcing and applications.

"We are pleased with recent booking trends," Mr. Rittenmeyer said.
He noted that a number of large contracts for which EDS was down-
selected to one moved from the fourth quarter of 2007 into 2008.

Significant fourth quarter signings included a new contract to
deliver infrastructure services to Bristol-Myers Squibb; a
Medicaid contract extension with the State of Indiana leveraging
the company's leading-edge interChange Health System; and an IT
services contract with Continental Airlines.

The company continued its focus on the sale of applications
services in the fourth quarter, signing US$1.8 billion in
contracts representing 30 percent of total contract value for the
quarter. For the full year, applications services represented 32
percent of total contracts sold.

The company continued to build its presence in applications
services with the fourth quarter launch of its Global SAP
Consulting Practice and the launch of a Global Testing Practice.
In addition, the company enhanced its applications business with
the acquisition of a majority interest in Saber Solutions, a
leading provider of software and solutions to U.S. state and local
governments.

Fourth quarter 2007 operating margin was 7.3 percent on an
adjusted basis versus 6.8 percent in the year-ago quarter.

Free cash flow was US$563 million in the fourth quarter of 2007,
up 44 percent from the year-ago period.

              Fourth Quarter Results by Segment

   -- Americas: Fourth quarter revenue was US$2.59 billion, down
      8 percent compared to the prior-year period.  Operating
      profit was US$394 million, down 28 percent from US$547
      million in the prior-year period, driven primarily by the
      previously disclosed Verizon contract termination.

   -- EMEA: Fourth quarter revenue was US$1.77 billion, up 3
      percent compared to the prior-year period.  Operating
      profit was US$352 million, up 15 percent from US$307
      million in the prior-year period.

   -- Asia Pacific: Fourth quarter revenue was US$478 million,
      up 16 percent compared to the prior-year period. Operating
      profit was US$71 million, up 41 percent from US$50 million
      in the prior-year period, driven primarily by MphasiS and
      improved contract performance in the region.

   -- U.S. Government: Fourth quarter revenue was US$624
      million, flat compared to the prior-year period. Operating
      profit was US$92 million, down 34 percent from US$139
      million in the prior-year period, due primarily to
      contractual price reductions.

All segment comparisons are at constant currency, exclude
corporate expenses and include intersegment transactions.

                     Full-Year 2007 Results

The company's 2007 adjusted net income was US$828 million compared
to adjusted net income of US$522 million in 2006.  Full-year 2007
net income, in accordance with U.S. GAAP, was US$716 million
versus net income of US$470 million in 2006.

Full-year 2007 adjusted net income and EPS exclude costs related
to the company's fourth quarter 2007 early retirement offer of
US$154 million net after-tax losses associated with discontinued
operations of US$13 million and pre-tax items as follows: a write-
off of acquired in-process research and development of US$6
million and a reversal of previously recognized restructuring
expenses of US$4 million.  Full-year 2006 adjusted net income
excluded net after-tax losses associated with discontinued
operations of US$29 million, a pre-tax loss on
divestitures of US$22 million, and a reversal of previously
recognized restructuring expenses of US$7 million.

Full-year 2007 total revenue increased 4 percent to US$22.1
billion from total revenue of US$21.3 billion in 2006.

Full-year 2007 total contract value was US$19.5 billion, down 26
percent from US$26.5 billion the prior year.  Excluding the
multibillion dollar contract renewals with General Motors and the
U.S. Navy in 2006, total contract value increased 2 percent year-
over-year.  In 2007, the company signed 28 mega-deals with total
contract values greater than US$100 million versus 26 mega-deals
in 2006. New logos accounted for US$3.5 billion
of total contractvalue in 2007.

Full-year 2007 free cash flow increased to US$892 million, from
US$887 million for full-year 2006.

"EDS enters 2008 a stronger and more competitive company," said
Rittenmeyer.  "Our financial priorities include driving
sustainable operating margin and free cash flow improvement,
building on our strong presence in ITO, continuing to enhance our
capabilities in higher-margin applications services, and expanding
and improving our Best Shore(R) global delivery. At the same time,
we will always maintain our relentless focus on operational
excellence, quality and our 'zero outage' goal for clients."

                         2008 Guidance

    -- Revenue growth of approximately 2 percent.
    -- Free cash flow of approximately US$900 million.
    -- Total contract value in excess of US$20 billion.

Additional details regarding 2008 guidance will be provided at the
company's Securities Analyst Conference on Feb. 19.

                About Electronic Data System

Based in Plano, Texas, Electronic Data System Corp. (NYSE: EDS) --
http://www.eds.com/-- is a global technology services company
delivering business solutions to its clients.  The company founded
the information technology outsourcing industry more than 40 years
ago.  The company delivers a broad portfolio of information
technology and business process outsourcing services to clients in
the manufacturing, financial services, healthcare, communications,
energy, transportation, and consumer and retail industries and to
governments around the world.

The company has locations in Argentina, Australia, Brazil, China,
Chile, Hong Kong, India, Japan, Malaysia, Mexico, Puerto Rico,
Singapore, Taiwan, Thailand and South Korea.

                         *     *     *

Moody's placed EDS Corp.'s senior unsecured debt rating at 'Ba1'
in July 2004, and its probability of default rating at 'Ba1' in
September 2006.  Moody's said the outlook is positive.  The
ratings still hold to date.


MACY'S: Division Consolidation Cues Elimination of 2,550 Jobs
-------------------------------------------------------------
Macy's Inc. disclosed new initiatives to strengthen local market
focus and enhance selling service which, in combination with the
consolidation of three Macy's divisions, is expected to enable the
company to both accelerate same-store sales growth and reduce
expense.

"Improving sales and earnings performance requires innovation in
engaging our customer more effectively in every store, well as
reducing total costs," Terry J. Lundgren, Macy's Inc. chairman,
president and chief executive officer, said.  "We believe the
right answer is to reallocate our resources to place more emphasis
and talent at the local market level to differentiate Macy's
stores, serve customers and drive business.

"In essence, we plan to drive sales growth by improving our
knowledge at the local level and then acting quickly on that
knowledge. These moves will benefit our customers as well as our
shareholders," Mr. Lundgren added.  "In addition, we believe our
new strategies will speed up decision making and simplify the
process of working with our vendors."

                    Localization Initiatives

Called "My Macy's," a localization initiative was developed over
the past year based on customer research, as well as input from
Macy's store managers, senior division executives, merchandise
vendors and industry experts.  Its goal is to accelerate sales
growth in existing locations by ensuring that core customers
surrounding each Macy's store find merchandise assortments, size
ranges, marketing programs and shopping experiences that are
custom-tailored to their needs.

To maximize the results from My Macy's, the company is taking
action in certain markets that will:

   * Concentrate more management talent in local markets,
     effectively reducing the "span of control" over local
     stores;

   * Create new positions in the field to work with division
     central planning and buying executives in helping to
     understand and act on the merchandise needs of local
     customers;

   * Empower locally-based executives to make more and better
     decisions.

This new structure will be adopted for those geographic markets
that have been a part of Macy's North, Macy's Midwest and Macy's
Northwest as they are consolidated into Macy's East, Macy's South
and Macy's West.

Macy's locations in these markets will be grouped into 20 newly
formed districts of about 10 stores, compared with an average of
16 to 18 currently overseen by each regional manger.  Districts
will be based in cities including Chicago, Cincinnati, Cleveland,
Columbus, Detroit, Indianapolis, Kansas City, Minneapolis,
Pittsburgh, Portland, Oregon, St. Louis, Salt Lake City and
Seattle.

Each new district will have a manager and a small staff of store
merchandisers and planners.  These districts will report into
their divisions through new regional offices being established in
Chicago, Cincinnati, St. Louis and Seattle.

District-based executives will be empowered to make more local
decisions about space allocation, service levels and visual
merchandising, which the company believes will enhance execution.
Additionally, district-based planners will provide market-specific
intelligence to division planning offices.  More resources also
will be provided to local markets for special events and to
enhance customer service.

A total of approximately 250 new district and region positions
will be based in those local markets adopting the new model.  This
will double the number of management positions in the field in
these markets.

Merchandise localization will be supported by a series of new
systems and technology being rolled out in 2008 to all Macy's
divisions, including Macy's Florida, to facilitate more detailed
store-level execution and assortment planning.  In part, this will
allow merchants to more accurately assort each Macy's store with
items, brands, garment sizes and colors preferred by customers who
shop that specific location.

               Division Organization Consolidations

Effective immediately, the company will begin consolidating its
Minneapolis-based Macy's North organization into New York-based
Macy's East, its St. Louis-based Macy's Midwest organization into
Atlanta-based Macy's South and its Seattle-based Macy's Northwest
organization into San Francisco-based Macy's West.  The Atlanta-
based division will be renamed Macy's Central.  All store
locations will remain in place.

The consolidation of divisional central office organizations,
expected to be completed in the second quarter of 2008, will
affect approximately 950 positions at the Macy's North
headquarters offices in Minneapolis, 850 positions at the Macy's
Midwest headquarters offices in St. Louis, and 750 positions at
the Macy's Northwest headquarters offices in Seattle.

Executives in the Macy's North, Macy's Midwest and Macy's
Northwest central organizations will be considered for positions
in the new local market organization or for open positions
elsewhere in the company.  Employees laid off in this process will
be provided severance benefits and outplacement assistance.

The company's Miami-based Macy's Florida and New-York based
Bloomingdale's divisions are not affected.

                        Financial Aspects

The savings from the divisional consolidation process, net of the
amount invested in localization initiatives and increased store
staffing levels, are expected to reduce Macy's Inc.  SG&A expense
by approximately US$100 million, beginning in 2009.  The partial-
year reduction in SG&A for 2008 is estimated at approximately
US$60 million.

Macy's Inc. will take one-time pre-tax charges of approximately
US$150 million in 2008 for expenses related to the division
consolidations.  This will include relocation assistance for
executives being assigned, well as severance and outplacement
assistance for displaced employees.  In addition, there will be a
slight negative impact on gross margin in the spring season as
inventories in the consolidated divisions are aligned.

                          2008 Guidance

In fiscal 2008, Macy's Inc. is assuming a continued challenging
economic environment through most of the year with some modest
improvement expected by the fourth quarter. Given the uncertain
macroeconomic environment, the company's range for same-store
sales guidance for 2008 is wider than usual: down 1% to up 1.5%.

Including this sales assumption and impact of the division
consolidations, Macy's Inc. is assuming earnings per share on a
diluted basis of US$1.85 to US$2.15, excluding one-time costs, for
fiscal 2008.  Effective with 2008, the company has decided to no
longer provide quarterly sales or earnings guidance.

While the company still expects to reach its goal of increasing
EBITDA as a percentage of sales to the historic peak range of
14% to 15%, management does not believe it will do so in the 2008-
2009 time period because of the impact of lower-than-expected
sales growth in 2007 and 2008 due in large part to the
macroeconomic environment.

The company is budgeting capital expenditures of approximately
US$1.1 billion in 2008.  Macy's Inc. expects to buy back its stock
in 2008, depending on market conditions.

                   Division Principal Changes

As part of the transition process, Jeffrey Gennette, chairman and
chief executive officer of Macy's Northwest, will relocate to San
Francisco as chairman and chief executive officer of Macy's West.
He will succeed Robert L. Mettler, who has agreed to postpone his
planned July retirement and will remain with Macy's Inc. as
president for special projects, reporting to vice chair Susan D.
Kronick.  In this position, Mettler will focus initially on
strategic development of the company's cosmetics business.

Mr. Gennette will lead the Macy's West principal team that will
continue to include Daniel H. Edelman, president and chief
operating officer, and Rudolph J. Borneo, vice chairman and
director of stores.  The new Macy's West division will incorporate
257 Macy's stores in 13 western states and Guam, with 2007 sales
of approximately US$7 billion.

Robert B. Harrison, Macy's Northwest president and chief operating
officer, will remain in Seattle to supervise the transition and
later will be reassigned to a senior position within the company.

At Macy's North, Frank J. Guzzetta, chairman and chief executive
officer, and Robert M. Soroka, president and chief operating
officer, both will retire as they had previously planned in spring
2008.  Amy Hanson, Macy's North vice chairman and director of
stores, will remain in Minneapolis to supervise the transition and
later will be reassigned to a senior position within the company.

After the consolidation, Macy's East will be led by Ronald Klein,
chairman and chief executive officer, and Mark S. Cosby, president
and chief operating officer.  The consolidated Macy's East
division will incorporate 252 stores in 20 eastern and midwestern
states and Washington, D.C. with 2007 sales of approximately
US$9 billion.

William P. McNamara, Macy's Midwest chairman and chief executive
officer, will remain with the company in a new role leading
development of future Macy's reinvent strategies, reporting to
Lundgren.  Brian L. Keck, president and chief operating officer of
Macy's Midwest, will remain in St. Louis to assist with the
transition.

After the consolidation, Macy's Central will be led by Edwin J.
Holman, chairman and chief executive officer, Andrew P. Pickman,
president and chief merchandising officer, and Michael G. Krauter,
vice chairman and director of stores.  The consolidated Macy's
Central division will incorporate 240 stores in 18 states with
2007 sales of approximately US$5.3 billion.

All retail division chairmen, including Mssrs. Klein, Holman and
Gennette, will report to Mr. Kronick.

"Macy's Inc. has benefited from exceptional leadership at the
divisional level, and this will continue to be the case going
forward across the company.  Bob Mettler has been an exceptional
and highly effective leader at Macy's West, and we are fortunate
that he will remain with the company to provide additional
leadership and strategy development, initially in the cosmetics
business.

Frank Guzzetta, Bob Soroka, Bill McNamara and Brian Keck are
retailers who have been instrumental in the transition of the
Macy's North and Macy's Midwest organizations after the
acquisition of The May Department Stores Company in 2005,"
Mr. Lundgren said.

Mr. Gennette, 46, has been chairman and chief executive officer of
Macy's Northwest since February 2006. For the previous two years,
he served at Macy's Central in Atlanta as executive vice president
and director of stores.  Mr. Gennette was senior vice
president/general merchandise manager for men's and children's at
Macy's West in San Francisco from May 2001 to March 2004, and
before that vice president/division merchandise manager for men's
collections at Macy's West.

Mr. Gennette joined Macy's West in 1983 as an executive trainee
and held various merchant and store management positions in that
division.  During his career, Mr. Gennette also has served as a
store manager for FAO Schwarz and regional vice president for
Broadway Stores.

Mr. Guzzetta, 62, became chairman and chief executive officer of
Macy's North in February 2006 after serving as president of
Marshall Field's since January 2005.  Previously, he was president
and chief executive officer of May Company's Hecht's/Strawbridge's
division since 2000.

He joined Hecht's in 1988 as a divisional vice president and
divisional merchandise manager before being promoted to senior
vice president and general merchandise manager and, later,
executive vice president of merchandising.  Prior to joining May,
he worked in retailing for 11 years at Woodward & Lothrop.

Ms. Hanson, 49, joined Macy's North as vice chairman in
July 2006. A 25-year Macy's Inc. veteran, she joined the company
in 1983 and held positions of increasing responsibility at the
Corporate Office and at The FACS Group (now Macy's Credit and
Customer Services).  She joined FACS in 1991 as group manager for
planning and receivables before being promoted to senior vice
president in 1997 and president of credit services in 2000.  She
was named president of FACS in 2002.

Mr. Harrison, 44, has been president and chief operating officer
of Macy's Northwest since February 2006.  Previously, he was
chairman of Robinsons-May in Los Angeles since October 2004,
having previously served as that division's senior vice president
and chief financial officer since June 2002, well as the senior
vice president for finance of the Meier & Frank division before it
was merged with Robinsons-May.

Mr. Harrison began his career at May Company's Kaufmann's division
in 1986 as an accounting analyst and served in positions of
increasing responsibility before becoming vice president and
controller of Kaufmann's.

Mr. Keck, 55, was named president and chief operating officer of
Macy's Midwest in October 2005.  He began his career with May
Company in 1986 as divisional vice president and director of
recruitment and placement for Famous-Barr in St. Louis.  In 1987,
he was named senior vice president of human resources at May
Centers, May's former shopping center development division.

In 1989, he was named senior vice president for human resources
for the Meier & Frank division in Portland, Oregon, and was named
to a similar position in 1992 at Filene's in Boston.  In 1997, Mr.
Keck was named chairman of the Meier & Frank division, and in 2000
was selected to head the corporation's human resources
organization.

Mr. McNamara, 57, was named chairman and chief executive officer
of Macy's Midwest in October 2005.  He began his retailing career
in 1972 as an executive trainee at Filene's in Boston.  He served
in a variety of executive and buying positions until 1986, when he
was named senior vice president and general merchandise manager at
Filene's.

In 1995, Mr. McNamara was named senior vice president and general
merchandising manager at May Merchandising Company in St. Louis.
In 1997, Mr. McNamara was named president and chief executive
officer of Famous-Barr, and in 1998 became president of May
Merchandising Company.  He became the corporation's vice chairman
in 2000.

Mr. Mettler, 67, was named chairman and chief executive officer of
Macy's West in June 2002 after having served as the division's
president and chief operating officer since 2000.  Mr. Mettler
began his retail career in 1962 as an executive trainee at Jordan
Marsh in Boston, then a division of Allied Stores Corporation.

Mr. Mettler stayed with Allied until 1986, having risen through
the merchandising ranks at Jordan Marsh before being named
president and chief executive officer of Joske's San Antonio in
1980, and chief executive officer of Joske's of Texas in 1984.

Two years later, he joined the May Company as president and chief
executive officer of its L.S.Ayres division before being named to
that post at Robinson's in California in 1987.  He joined Sears in
1993 as president for apparel and home fashions, and rose to
become president of merchandising for full-line Sears stores.

Mr. Soroka, 56, became president and chief operating officer of
Macy's North in February 2006 after serving as chairman of
Marshall Field's since October 2004.  Previously, he was chairman
of Robinsons-May in Los Angeles and, before that, the division's
senior vice president/chief financial officer.  Mr. Soroka joined
May in 1970 at O'Neil's, May Company's former department store
division headquartered in Akron, Ohio.  From 1983 through 1990 he
held increasingly responsible financial and credit positions at
three additional May department store divisions.

                       About Macy's Inc.

Based in Cincinnati and New York, Macy's Inc. (NYSE: M) fka
Federated Department Stores Inc. -- http://www.fds.com/-- is one
of the nation's premier retailers.  The company operates more than
850 department stores in 45 states, the District of Columbia, Guam
and Puerto Rico under the names of Macy's and Bloomingdale's.  The
company also operates macys.com, bloomingdales.com and
Bloomingdale's By Mail.

                         *     *     *

As reported in the Troubled Company Reporter on Oct. 23, 2007,
Moody's Investors Service affirmed all ratings of Macy's Inc.,
including its long term rating of Baa2, Prime 2 short term
rating, and (P)Ba1 Preferred shelf rating but changed the outlook
to negative from stable.  The change in outlook was prompted by
the continuing negative comparable store sales in the former May
doors, credit metrics that are at the trigger points cited in
Moody's Credit Opinion of Feb. 28, 2007, for a downgrade, and the
uncertain outlook on consumer spending that could further delay
improvement in the former May stores' performance.



===============
S U R I N A M E
===============

* SURINAME: Low-B Ratings Reflect High Debt Burden, Moody's Says
----------------------------------------------------------------
In its annual report on Suriname, Moody's Investors Service
examines how the country's speculative-grade ratings reflect a
history of volatile economic and political conditions, including
periods of high budget deficits financed by the central bank.

The government's local- and foreign-currency government bond
ratings are Ba3 and B1, respectively, both with stable outlooks.
"The one-notch gap between the two government bond ratings reflect
Suriname's moderately higher external debt burden compared to its
government debt burden indicators," said Moody's Vice President
Mauro Leos, author of the report.

He said that persistent arrears with bilateral creditors and the
economy's vulnerability to external shocks from fluctuations in
commodity prices point to underlying credit weaknesses.

"On the upside, the fiscal position has improved, supporting
reductions in government debt ratios, and allowing the authorities
to tackle international payment arrears.  The country has also
recently benefited from higher commodity
prices for aluminum, gold, and oil and large inflows of foreign
direct investment in the extractive mining and oil industries,"
said Mr. Leos.

Domestic economic volatility has been reduced in recent years as
the government has implemented an economic stabilization program
and passed legislation setting ceilings for government debt and
central bank financing.

"Preserving a stable political environment appears necessary, as
these economic policy steps reinforce conditions supportive of a
stable credit outlook," Mr. Leos concluded.



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



=============
U R U G U A Y
=============

* URUGUAY: US Dollar Drop May Help in Debt Payment, Moody's Says
----------------------------------------------------------------
Latin American countries including Colombia, Peru, Uruguay and
Brazil would benefit from the depreciating U.S. dollar by making
it easier for them to repay U.S. dollar-denominated debt as the
value of such debt is reduced,according to a Moody's Investors
Service report cited by Bloomberg News.

"For countries with large dollar debt, it could be some kind of
tail wind," Bloomberg News cited Dietmar Hornung, vice president
and senior analyst in Frankfurt for Moody's, as saying.

However, Kevin Plumberg of Reuters News relates, citing the same
Moody's report, that further decline of the greenback could hurt
trade competitiveness, increase inflation in countries with
currencies pegged to the dollar, and weigh on the value of huge
storehouses of foreign exchange reserves.

According to Reuters, the dollar has fallen 22 percent in the last
six years pressured by the large U.S. current account deficit,
steady diversification of reserves by central banks out of
dollars, and solid global economic growth.

                          *     *     *

On Sept 11, 2006, Fitch rated Uruguay's US$400 million issue of
5% inflation-indexed bonds payable in U.S. dollars and maturing
Sept. 14, 2018, at 'B+'.



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

EXIDE TECHNOLOGIES: Taps Phillip Damaska as Exec. Vice President
----------------------------------------------------------------
Exide Technologies Board of Directors has appointed Phillip A.
Damaska as the new Executive Vice President and Chief Financial
Officer, effective April 1, 2008.

Mr. Damaska brings more than 30 years of experience to his new
role at Exide.  He joined the company in January 2005 as Vice
President, Finance and was subsequently appointed Vice President
and Corporate Controller in August of that same year.  Since March
2006, Mr. Damaska has held the position of Senior Vice President
and Corporate Controller and has overseen all of the company's
internal and external financial reporting, the preparation of
annual operating plans and forecast updates as well as provided
guidance in the company's efforts to comply with requirements of
the Sarbanes-Oxley Act.

From 1996 through 2004, Mr. Damaska held a variety of positions at
Freudenberg-NOK, the Americas joint venture partnership between
Freudenberg and Company in Germany and NOK Corporation in Japan.

Freudenberg-NOK provides an extensive portfolio of precision
molded products to the aerospace, aftermarket, fluid power, oil
and gas, marine, healthcare/medical, off-highway equipment,
recreational, industrial, chemical processing and semiconductor
markets worldwide.  During his tenure, he served as President of
Corteco, an automotive and industrial seal supplier that is part
of the Freudenberg-NOK global group of companies.  He also held
several finance related positions of increasing responsibility.

"During his time at Exide, Phil has demonstrated leadership and
financial acuity while earning the respect of the entire executive
team and our Board of Directors," said Exide Technologies
President and Chief Executive Officer, Gordon A. Ulsh.  "He has
played a fundamental role in strengthening Exide's stability and
profitability, and his guidance as Chief Financial Officer will
help the Company as we drive toward achieving our goals of growth
and profitability."

Mr. Damaska holds a Bachelor's Degree in Accounting from Albion
College and an MBA from the University of Detroit.  He also is a
Certified Public Accountant in the state of Michigan.

Mr. Damaska succeeds Francis M. Corby, Jr., who has served Exide
as Executive Vice President and Chief Financial Officer since
March 2006.  During his tenure, Mr. Corby has been instrumental in
helping the Company refinance its bank debt and complete two
separate equity rights offerings.  He plans his retirement to
coincide with the conclusion of the Company's fiscal year 2008.

"As a mature, experienced leader, Fran infused Exide with
financial stability at a critical time in our company's evolution,
bringing a number of internal issues under control," said Mr.
Ulsh.  "He took the lead, for example, in strengthening our
corporate accounting controls and compliance with Sarbanes-Oxley.
We are grateful for his many contributions that have strengthened
our position in the financial marketplace."

                    About Exide Technologies

Headquartered in Princeton, New Jersey, Exide Technologies
(NASDAQ: XIDE) -- http://www.exide.com/-- manufactures and
distributes lead acid batteries and other related electrical
energy storage products.

The company has operations in 89 countries, including, Argentina,
Belize, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El
Salvador, Guatemala, Panama, Paraguay, Peru, Uruguay and
Venezuela.

The company filed for chapter 11 protection on Apr. 14, 2002
(Bankr. Del. Case No. 02-11125).  Matthew N. Kleiman, Esq., and
Kirk A. Kennedy, Esq., at Kirkland & Ellis, represented the
Debtors in their successful restructuring.  The Court confirmed
Exide's Amended Joint Chapter 11 Plan on April 20, 2004.  The plan
took effect on May 5, 2004.

                         *     *     *

As reported in the Troubled Company Reporter-Latin America on
Nov. 23, 2007, Standard & Poor's Ratings Services has raised its
corporate credit rating on Exide Technologies to 'B-' from 'CCC+'
because of the company's improved financial results, which the
company has achieved despite sharply higher lead prices.  S&P said
the outlook is stable.

Moody's Investor Service placed Exide Technologies' senior secured
debt and probability of default ratings at 'Caa1' in September
2006.  The ratings still hold to date with a stable outlook.


GMAC LLC: Moody's Downgrades Senior Unsecured Rating to 'B1'
------------------------------------------------------------
Moody's Investors Service downgraded the senior unsecured rating
of GMAC LLC to B1 from Ba3.  Separately, the senior unsecured
rating of Residential Capital LLC was downgraded to B2 from Ba3.
The rating outlook for both firms is negative.  The GMAC rating
action is a result of Moody's downgrade of ResCap's ratings.

Since Dec. 21, 2007, the ratings of GMAC and ResCap had been
aligned at Ba3, reflecting Moody's view that GMAC would likely
provide support to ResCap and that such support could compromise
GMAC's stand-alone (ex-ResCap) credit profile.  During the fourth
quarter of 2007, GMAC did in fact provide support to ResCap, by
acquiring ResCap debt at a cost of approximately $740 million,
representing a substantial discount to par, and thereafter
contributing the debt to ResCap.  Upon retiring the debt, ResCap
recognized a $1.1 billion capital benefit that helped it avoid
breaching its minimum tangible net worth financial covenant.  In
Moody's view, GMAC's willingness to use its cash and capital for
this purpose diluted its own liquidity and capital positions.

GMAC's rating downgrade contemplates that the firm will likely
continue to provide capital support to ResCap in the near term,
primarily through similar open-market debt repurchases.  Moody's
has come to believe, however, that GMAC may have a limited
tolerance for supporting ResCap if ResCap's performance and
condition fail to meet management expectations for improvement
during the first half of 2008.  GMAC's further support of ResCap
could result in additional strains on its capital and liquidity
positions.  In relation to this, creditors' appetite to extend
credit to GMAC beyond current commitments could be affected by
GMAC's continued willingness to provide support to ResCap.

"Given GMAC's strategic importance to GM, we think that GMAC's
owners will not risk the firm's viability in its efforts to
stabilize ResCap," said Moody's analyst Mark Wasden.  "GMAC's B1
rating incorporates our expectation of the level of capital that
GMAC could be required to provide to ResCap during the first two
quarters of 2008, while ResCap confronts its operational issues.
Beyond this horizon, we believe further support from GMAC to be
less certain, as continued underperformance on the part of ResCap
could signal a failure of the firm to regain solid footing" he
added.

This perspective results in GMAC's B1 rating being positioned one-
notch above ResCap's B2 rating.

The negative rating outlook assigned to GMAC's rating incorporates
the continuing uncertainty regarding the extent and nature of the
support GMAC may provide to ResCap.  The negative outlook also
reflects other pressures on GMAC's stand-alone profile arising
from its association with ResCap, including higher borrowing costs
and potential constraints to its access to critical funding
support.  GMAC is also beginning to contend with deteriorating
asset quality measures, brought about by a less conducive credit
environment that could also have a deleterious effect on its
access to funding and its profitability.

Key GMAC strengths continue to be its valuable auto finance
origination and servicing franchise, its position of strength in
terms of its financing share of GM auto sales, and its diligent
liquidity and credit risk management practices.  Absent the ResCap
related stresses, GMAC's stand-alone profile could warrant a
slightly higher rating profile.  A significant constraint to
higher ratings, again setting ResCap aside, is the firm's high
stand-alone leverage and its continuing business risk
concentrations with lower-rated GM (CFR at B3).

GMAC LLC, based in Detroit, is a provider of retail and wholesale
auto financing, auto insurance and warranty products, and through
its wholly-owned subsidiary Residential Capital LLC, residential
mortgage products and services.  GMAC reported a preliminary 2007
fourth quarter consolidated net loss of $724 million.


NORTHWEST AIRLINES: Merger Talks with Delta Air Lines Intensifies
-----------------------------------------------------------------
Merger talks between Delta Air Lines Inc. and Northwest Airlines
Corp. have intensified that could lead to an agreement being
announced in the next two weeks, various reports say.

Key details of the deal have yet to be hammered out and
negotiations could still fall apart, according to The Wall Street
Journal, citing people familiar with the talks.

The reports note the potential dealbreaker was the structure of
the combined Delta-Northwest management, specifically Northwest
CEO Doug Steenland and his management team's role in the new
company.  The Journal's source says those issues were overcome
earlier this week.

When companies merge, it's not uncommon for the chief executives
to divide the leadership roles, with one taking the CEO post and
the other becoming chairman, according to TheStreet.com.  In the
case of Delta and Northwest, the situation is complicated by the
role of Daniel Carp, who became chairman of Delta when the carrier
emerged from bankruptcy in May 2007, TheStreet.com says.

Since Mr. Carp was brought in to enhance Delta's position, there
is a feeling that he should remain because of the progress the
company has made, TheStreet.com says, citing a source.
TheStreet.com's source says Mr. Steenland has apparently accepted
the idea that Mr. Carp and Delta CEO Richard Anderson will retain
their current posts in a new company.

Mr. Anderson, a former Northwest Airlines chief executive, assumed
the Delta CEO post from Gerald Grinstein in August.  That decision
to hire Mr. Anderson "raised new questions about Delta's future
strategy", WSJ reported at that time.

Mr. Anderson's appointment raises speculations that with an
outsider at the helm, Delta may reverse its "go it alone" strategy
and pursue a consolidation with Northwest, United Air Lines or
Continental Airlines, Business Week had said.

At the time of its bankruptcy, Delta and its unsecured creditors
committee fended off a $8,000,000,000 to $10,000,000,000
hostile takeover bid from US Airways Group, Inc.   Delta said it
was better off as a stand-alone carrier.

In January 2007, about two months since US Airways launched its
hostile bid, Delta and NWA were reported to have held discussions
about a potential merger.  While both companies denied the
reports, Mr. Grinstein subsequently admitted to sharing
information with Northwest.  "At the behest of our creditors'
committee we recently retained an investment banker to obtain
information from Northwest, a far cry from negotiating for a
merger with them," Mr. Grinstein told members of the Delta Board
Council, according to Reuters.

Delta did not discount any possibility of a merger post-
bankruptcy.  According to a prior WSJ report, the Creditors
Committee conditioned its support of Delta's stand-alone Chapter
11 plan of reorganization to a number of concessions, including
the appointment of a new board that favors consolidation as a
strategic opotion.

In October, Mr. Anderson said he saw "obvious benefits" for
Delta's employees and shareholders in Delta's merging with another
carrier, Meg Marco at The Star Tribune reported.  Although Mr.
Anderson did not name a potential merger target for Delta at that
time, analysts have argued that Northwest would make a good
partner because the carriers' routes complement each other, Ms.
Marco said.

As proposed, the Delta-Northwest deal would be a stock-for-stock
transaction, done "at market," meaning at roughly where the two
stocks are trading, with little or no premium for either side, WSJ
says.   The Journal adds that the dynamic has made non-economic
issues the center of the deal negotiations.

               United & Continental Talks Gain Steam

There is also a possibility Delta could wind up with United.  Both
carriers have continued exploratory talks over the past month, WSJ
says, citing people briefed on the matter.

Pardus Capital Management, a New York-based hedge fund, and major
stakeholder in both United and Delta, had urged both carriers to
consolidate, to save money and counter escalating jet-fuel prices
which rose by around 53% last year.

As reported in the Troubled Company Reporter on Jan. 22, 2008, Mr.
Anderson obtained approval from Delta's board of directors on Jan.
11, 2007, to engage in formal merger talks with both Northwest and
United.

Various reports, however, relate that a United-Continental merger
is more likely.  The reports state that exploratory merger talks
between the two carriers have grown serious.

Delta, the No. 3 U.S. carrier in terms of passenger traffic, has a
market value of over $4,100,000,000 -- higher than UAL's
$3,800,000,000, and Northwest's $3,700,000,000.  United is the
second-largest U.S. carrier, while Northwest takes the fifth spot.
Continental, in Houston, Texas, is the No. 4 carrier.

A Delta merger with either Northwest or United would create the
largest passenger airline in the world.

Some analysts worry a Delta merger would face antitrust hurdles,
Bankruptcylaw360 says.

The Journal says Delta's intent was to pursue tandem negotiations
with Northwest and United on a compressed timeline, get a deal
inked by mid-February and quickly begin the process for winning
antitrust approval.  Executives at the airlines believe any
mergers are more likely to pass regulatory muster during the
waning days of the Bush administration, the Journal relates.

A United-Continental deal will have to be done very near a
Northwest-Delta announcement, so the two potential combinations
would undergo regulatory scrutiny at the same time, the Journal
says citing a source familiar with the matter.  A different source
told the Journal United and Continental are poised to act quickly
once another airline merger is announced.

Northwest holds a "golden share" of preferred stock in Continental
that allows Northwest to block a merger of Continental with
another large carrier, WSJ notes.  But if Northwest agrees to
merge with Delta, Continental could redeem that stock for a total
of $100, even if the deal is never consummated, freeing
Continental to entertain other suitors, WSJ says.

Continental executives have repeatedly said they prefer to remain
independent, but would do what is best for the company if the
competitive landscape changes, WSJ notes.

Experts in the airline industry believe that a Northwest-Delta
merger is more likely as Delta's Anderson was previously CEO at
Northwest, and is already well acquainted with Northwest's
operations.

Bloomberg, citing an unnamed person familiar with Air France-KLM
Group's plans, has reported that Air France is encouraging a
merger between Delta and Northwest and may make a financial
investment to foster a tie-up.  A Delta-Northwest combination
would preserve the SkyTeam Alliance, a marketing group that
includes Delta, Northwest and United.

                         Other Issues

Other issues that will have to be taken up in a Delta-Northwest
combination include both carrier's labor groups.  The Air Line
Pilots Association branches at Delta and Northwest have signaled
that they could support a merger if they receive equity in the
combined airline and achieve a labor contract with improved terms,
WSJ says.

Analysts also said mergers could lead to higher fares in some
markets, at least in the long term, The New York Times state.
Congress could also oppose a combination due to possible job loss
and reduction in competition, Times relates.

                        About Delta Air

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

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

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

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

                        *     *     *

As reported in the Troubled Company Reporter on Jan. 17, 2008,
Standard and Poor's said that media reports that Delta Air Lines
Inc. (B/Positive/--) entered into merger talks with UAL Corp.
(B/Stable/--) and Northwest Airlines Corp. (B+/Stable/--) will
have no effect on the ratings or outlook on Delta, but that
confirmed merger negotiations would result in S&P's placing
ratings of Delta and other airlines involved on CreditWatch, most
likely with developing or negative implications.

                       About UAL Corp.

Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA)
-- http://www.united.com/-- is the holding company for United
Airlines, Inc.  United Airlines is the world's second largest
air carrier.  The airline flies to Brazil, Korea and Germany.

The company filed for chapter 11 protection on Dec. 9, 2002
(Bankr. N.D. Ill. Case No. 02-48191).  James H.M. Sprayregen,
Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and
Steven R. Kotarba, Esq., at Kirkland & Ellis, represented the
Debtors in their restructuring efforts.  Fruman Jacobson, Esq.,
at Sonnenschein Nath & Rosenthal LLP represented the Official
Committee of Unsecured Creditors before the Committee was
dissolved when the Debtors emerged from bankruptcy.  Judge
Wedoff confirmed the Debtors' Second Amended Plan on
Jan. 20, 2006.  The company emerged from bankruptcy protection
on Feb. 1, 2006.  (United Airlines Bankruptcy News, Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000).

                        *     *     *

Moody's Investor Service placed UAL Corp.'s long term corporate
family and probability ratings at 'B2' in January 2007.  The
ratings still hold to date with a stable outlook.

                    About Continental Airlines

Continental Airlines Inc. (NYSE: CAL) -- http://continental.com/
-- is the world's fifth largest airline.  Continental, together
with Continental Express and Continental Connection, has more than
2,900 daily departures throughout the Americas, Europe and Asia,
serving 144 domestic and 139 international destinations.  More
than 500 additional points are served via SkyTeam alliance
airlines.  With more than 45,000 employees, Continental has hubs
serving New York, Houston, Cleveland and Guam, and together with
Continental Express, carries approximately 69 million passengers
per year.

                          *     *     *

As reported in the Troubled Company Reporter on Dec. 27, 2007,
Fitch Ratings affirmed Continental Airlines 'B-' issuer default
rating with a stable outlook.

                  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 $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.

(Northwest Lines Bankruptcy News; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000).

                        *     *     *

Moody's Investor Service placed Northwest Airlines Corp.'s long
term corporate family and probability of default ratings at 'B1'
in May 2007.  The ratings still hold to date with a stable
outlook.


                            ***********


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
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