TCRLA_Public/080213.mbx          T R O U B L E D   C O M P A N Y   R E P O R T E R

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

           Wednesday, February 13, 2008, Vol. 9, Issue 31

                             Headlines


A R G E N T I N A

ALITALIA SPA: AirOne SpA Welcomes More Partners for Stake Bid
ALITALIA SPA: Air France to Place Company Under Direct Control
ARMELINO ROSA-VARELA-BARRALIA: Seeks Bankruptcy Okay from Court
BANCO INDUSTRIAL: Sells ARS73 Million of Short-Term Debt
DANA CORP: Newco Gets 'BB-' Rating from S&P After Chapter 11 Exit

DELTA AIR: Launches Flight to St Kitts
FERRO CORP: Expects US$500-Mln Net Revenues in 2007 Fourth Quarter
FIDEICOMISO FINANCIERO: Moody's Rates Debt Securities at B1
GIDEON INVESTMENT: Claims Verification Deadline is March 26
INVERSIONES Y REPRESENTACIONES: Earns ARS5.8MM in First Half '08

SCO GROUP: Gets Court OK to File Chapter 11 Plan Until May 11
TEMPEST WORLDCOM: Proofs of Claim Verification Ends on March 20
TENNECO INC: Bags Ford Motor's Hot-End Emission Control Business
TRANS ROGAL: Proofs of Claim Verification Deadline is March 21
UTSTARCOM INC: Appoints Diego Martinez as Regional VP & Gen. Mgr.

* ARGENTINA: India Targets 3 Billion Trade by 2010

A R U B A

VALERO ENERGY: Moody's Reviews Low-B Ratings for Likely Upgrade

B A H A M A S

HARRAH'S ENT: Issues US$6.3 Billion Aggregate Sr. Secured Notes

B A R B A D O S

DIGICEL LTD: Hires Tanya Menzies as CEO for Tonga Unit

* BARBADOS: IMF Official Says Tourism Vulnerable to US Slowdown

B E L I Z E

CATALYST PAPER: To Acquire Snowflake Mill from AbitibiBowater
CATALYST PAPER: S&P Says Ratings Unaffected by Snowflake Buyout

* BELIZE: Government to Avoid Bond Issuances

B E R M U D A

ASIA GAMMA: Sets Final Shareholders Meeting for March 10
CLAYTON PARTNERS: Sets Final Shareholders Meeting for March 14
MAN MAC: Proofs of Claim Filing Deadline is February 15
SENATE INSURANCE: Proofs of Claim Filing Deadline is March 7
SOLAR ENTERPRISES: Proofs of Claim Filing is Until February 22

B O L I V I A

SENSIENT TECH: Earns US$77.8 Million in Year Ended Dec. 31

B R A Z I L

ARROW ELECTRONICS: To Acquire ACI Assets
BANCO BRADESCO: Cuts Monthly Interest Rates to 2.64% from 3.70%
BANCO NACIONAL: Reaches BRL64.9 Billion Disbursements in 2007
BANCO NACIONAL: Power Sector Loans Increase 207% to BRL12.8 Bil.
BR MALLS: Forms Partnership to Manage 70 Villa Daslu Stores

DELPHI CORP: Lenders Have Problems Syndicating $6.1 Billion Loan
FORD MOTOR: Awards Hot-End Emission Control Business to Tenneco
GENERAL MOTORS: Paying US$0.25 First Quarter Dividend on March 10
GENERAL MOTORS: Invests US$69 Mil. in Ohio Diesel Engine Plant
GENERAL MOTORS: May Have to Fund Delphi's Exit, Investors Say

JAPAN AIRLINES: Reports JPY20.4BB Income for First Nine Months
JAPAN AIRLINES: Chairman to Leave Post on March 31
JAPAN AIRLINES: Paying JPY48 Million on Employee Suit
TECUMSEH PRODUCTS: Names Edwin Buker as Board Chairman
USINAS SIDERURGICAS: Plans to Boost Unit's Iron-Ore Production

XERIUM TECH: Appoints Three Officers to Executive Roles

C A Y M A N  I S L A N D S

ABLAMID INVESTMENT: Proofs of Claim Filing Deadline is Feb. 25
ABLAMID INVESTMENT: Final Shareholders Meeting is on February 25
BANK OF INDIA: Raises INR1,360 Crore from Share Issue
LA CHAINE: Proofs of Claim Filing Deadline is February 25
NEW ORIENTAL: Sets Final Shareholders Meeting for February 25

PARMALAT SPA: Venezuela May Confiscate Firm's Plant
TRADED POLICIES: Proofs of Claim Filing is Until February 25

C H I L E

ARAMARK CORP: Improved Credit Prompts S&P to Affirm B+ Rating
SCIENTIFIC GAMES: Wins Ticketing Deal w/ French Lottery Operator

C O L O M B I A

BRIGHTPOINT INC: To Deliver Google Services on Mobile Devices

C O S T A  R I C A

SIRVA INC: Seeks Court Okay to Employ KCC as Claims Agent
SIRVA INC: Wants to Hire TS&S as Conflicts Counsel

E C U A D O R

PETROECUADOR: Amazon Drilling Ban Talks May Affect Firm

H O N D U R A S

CHOICE HOTELS: Inks Alliance Agreement With Outrigger Ent.

J A M A I C A

SUGAR COMPANY: Frome Experimenting With Green Cane Harvesting

M E X I C O

ASARCO LLC: Grupo Mexico Says No to Sale of Assets
CHEMTURA CORP: Increases Prices on Some Polymer Additive Products
FEDERAL-MOGUL: Insurers, et al., Oppose Plan A Modifications
FEDERAL-MOGUL: Mesothelioma Claimants Back Plan A Modifications
INTERSTATE HOTELS: Acquires 22 Exel Inn Properties

KRONOS INC: Inks Human Resource Services Pact With Winn-Dixie
MAXCOM TELECOM: Net Income Reaches MXN61-Mln in Full-Year 2007
NUANCE COMM: Incurs US$15.4 Million Net Loss in First Quarter
OPEN TEXT: Raymond James Reaffirms Outperform Rating on Shares

* MEXICO: S&P Says Structured Finance Unscathed by World Crunch

P E R U

QUEBECOR WORLD: Moody's Rates US$1-Bln DIP Facilities at Ba2 & Ba3

P U E R T O  R I C O

CENTENNIAL COMM: Names Stephen Vanderwoude as Non-Exec Chairman
CHATTEM INC: Recalls Icy Hot Seat Products After Burn Reports
NUTRITIONAL SOURCING: Wants Until May 2 to File Chapter 11 Plan
NUTRITIONAL SOURCING: Empresas Bids US$26.5M for De Diego Assets
UNO RESTAURANT: Robert M. Vincent to Leave Executive VP Position

U R U G U A Y

GERDAU SA: Net Income May Drop 11% to BRL791MM in 4th Qtr. 2007

* URUGUAY: New Cabinet Members To Take Office Next Month

V E N E Z U E L A

CITGO PETROLEUM: Effect of Parent's Asset Freeze Undetermined
INTERNATIONAL PAPER: Earns US$327 Million in Fourth Quarter
LEAR CORP: Forms Global Operating Structure; Names 2 Executives

* VENEZUELA: Threatens to Confiscate Parmalat & Nestle's Plants

X X X X X X

* Moody's and S&P Trying to Patch Up Torn Credibility
* S&P Sees Central America's Economic Growth to Decrease in 2008
* SEC Plans to Require Rating Firms to Disclose Past Performanc


                         - - - - -

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

ALITALIA SPA: AirOne SpA Welcomes More Partners for Stake Bid
-------------------------------------------------------------
AirOne S.p.A. is inviting local and foreign investors to join its
binding offer for the Italian government's 49.9% stake in Alitalia
S.p.A., Reuters reports, citing AirOne chairman Carlo Toto.

As reported in the TCR-Europe on Feb. 7, 2008, AirOne said its
offer will be financially backed by Intesa Sanpaolo S.p.A.,
Goldman Sachs Group Inc., Morgan Stanley and Nomura Holdings Plc.

TPG Inc. and Pirelli & S.p.A. chairman Marco Tronchetti Provera
may join AirOne in its Alitalia bid.

A spokesman for Giorgio Armani, meanwhile, denied reports that
Milan-based fashion designer is mulling to participate in AirOne's
stake bid.

AirOne said it would present a binding offer once it wins an
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.

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

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.


ALITALIA SPA: Air France to Place Company Under Direct Control
--------------------------------------------------------------
Air France-KLM S.A. would place Alitalia S.p.A. under direct
control if it acquires the Italian government's 49.9% stake in the
national carrier, Reuters reports, citing sources privy to the
French airline.

A union leader earlier told Reuters that Air France is planning to
place Alitalia under a sub-holding for three years until the
Italian carrier breaks even.  This, according to the source, would
mean that both airlines could keep bilateral landing rights agreed
at state level.

                           Share Swap

The sources added to Reuters that the Italian government could sit
at Air France's board if it becomes a shareholder at the French
carrier by agreeing to a share swap deal.

According to Reuters, Air France is offering EUR0.35 per share for
the government's stake.

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.

                           Legal Contest

The talks are currently contested by AirOne at the Italian
Regional Administration Court of Lazio.  The court will convene
on Feb. 20, 2008, to hear an appeal filed by AP Holding S.p.A.,
investment arm of AirOne, 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 government's 49.9% stake to
Air France-KLM SA.

Slated to appear on the hearing are the regional government of
Lombardy, Air France and Codacons.

As reported in the TCR-Europe on Feb. 7, 2008, AirOne said it
would present a binding offer for Italy's stake once it wins its
appeal.  AirOne said its offer will be financially backed by
Intesa Sanpaolo S.p.A., Goldman Sachs Group Inc., Morgan Stanley
and Nomura Holdings Plc.

TPG Inc. and Pirelli & S.p.A. chairman Marco Tronchetti Provera
may join AirOne in its Alitalia bid.

                          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.


ARMELINO ROSA-VARELA-BARRALIA: Seeks Bankruptcy Okay from Court
---------------------------------------------------------------
The National Commercial Court of First Instance in Buenos Aires is
studying the merits of Armelino Rosa-Varela-Barralia S.R.L.'s
request to enter bankruptcy protection.

Armelino Rosa-Varela-Barralia filed a "Quiebra Decretada"
petition, after failing to pay its debts.

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.

The debtor can be reached at:

         Armelino Rosa-Varela-Barralia S.R.L.
         Quirno 7
         Buenos Aires, Argentina


BANCO INDUSTRIAL: Sells ARS73 Million of Short-Term Debt
--------------------------------------------------------
Nuevo Banco Industrial de Azul said in a statement that it has
sold some ARS73 million worth of short-term debt with an 11%
coupon.

Business News Americas relates that "the papers were sold with a
2.5% differential over the Badlar rate" -- the average interest
rate banks pay for deposits over ARS1 million.

BNamericas notes that Citicorp Capital Markets handled the issue.

Nuevo Banco Industrial de Azul S.A is headquartered in Buenos
Aires, Argentina, and it had assets of ARS1.8 billion and deposits
for ARS0.8 billion, as of March 2007.  The bank has 22 branches.
It is one of the principle banks of Argentina.  It provides
corporate banking, exterior commerce, capital markets, and markets
of exchange rates.

                          *     *     *

On Jan. 30, 2008, Moody's assigned a Caa1 long-term foreign
currency deposit rating to Nuevo Banco Industrial de Azul S.A.


DANA CORP: Newco Gets 'BB-' Rating from S&P After Chapter 11 Exit
-----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB-' corporate
credit rating to Toledo, Ohio-based Dana Holding Corp. following
the company's emergence from Chapter 11 on Feb. 1, 2008.  The
outlook is negative.

"The ratings are based on the exit financing, capital structure,
and other terms and conditions under Dana's plan of reorganization
filed with the bankruptcy court, which has now been consummated,"
said Standard & Poor's credit analyst Nancy Messer.

At the same time, Standard & Poor's assigned Dana's
US$650 million asset-based loan revolving credit facility due 2013
a 'BB+' rating (two notches higher than the corporate credit
rating) with a recovery rating of '1', indicating an expectation
of very high (90%-100%) recovery in the event of a payment
default.

In addition, S&P assigned a 'BB' bank loan rating to Dana's
US$1.43 billion senior secured term loan (one notch above the
corporate credit rating) with a recovery rating of '2', indicating
an expectation of average (70%-90%) recovery.

The bank loan ratings assume that any remaining conditions that
predate the bank facility are satisfied or waived.

Dana had US$1.6 billion of balance sheet debt outstanding at
emergence from bankruptcy.  The capital structure also includes
US$792 million of 4% cash-pay convertible preferred stock, held by
Centerbridge Partners L.P. and certain prior creditors, which
Standard & Poor's views as equity.

The ratings reflect Dana's weak business profile and aggressive
financial profile.  Dana is a significant participant in the
global automotive marketplace, manufacturing under-the-vehicle
products such as axles, driveshafts, and other structural,
sealing, and thermal products.  Dana's customers are original
equipment manufacturers of vehicles in the light, heavy-duty
commercial, and heavy off-road markets.

S&P could lower the ratings over the next year if Dana fails to
generate free cash flow, whether because of slower restructuring
efforts, more adverse market conditions, or failure to install a
strong executive leadership team.  In addition, S&P could lower
the ratings if Dana's strategic or financial policies take a more
aggressive turn under the new board of directors and executive
management team.  Any of these occurrences could inhibit Dana's
free cash flow and the potential for reduced leverage in the near
term.  S&P could revise the outlook to stable if market conditions
stabilize and Dana is able to modestly expand sales and EBITDA in
the next few years, and if restructuring activities produce
improved and sustainable adjusted EBITDA margin in 2008-2009 at
10% or better.  The assignment of a stable outlook would also
require S&P's confidence that the financial policy and business
strategy of Dana's new owners would remain consistent with the
current rating and that the company would resolve prior accounting
issues.  S&P would also need to see evidence, through the
achievement of profitable new business wins, that the company is
establishing itself as a credible long-term global competitor in
its markets.

                         About Dana Corp.

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

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

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

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

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

The Debtors filed their Joint Plan of Reorganization on
Aug. 31, 2007.  On Oct. 23, 2007, the Court approved the adequacy
of the Disclosure Statement explaining their Plan.  Judge Burton
Lifland of the U.S. Bankruptcy Court for the Southern District of
New York entered an order confirming the Third Amended Joint Plan
of Reorganization of the Debtors on Dec. 26, 2007.


DELTA AIR: Launches Flight to St Kitts
--------------------------------------
Delta Air Lines has launched a direct flight from Atlanta
Hartsfield Jackson International to St Kitts and Nevis, Caribbean
360 reports.

According to Caribbean 360, the flight would spur economic
advancement in St Kitts and Nevis in terms of expanding access
from non-traditional ports in the United States.

A tourism official commented to Caribbean 360, "The efforts
employed by the Ministry of Tourism in contracting airlift to and
from the Federation have been strategic and deliberate.  As the
tourism product develops in terms of increased and improved
accommodations, upgraded infrastructure and increased
entertainment choices, it becomes easier to get major airlines to
come on board."

The Delta Air St. Kitts flight would accommodate an increasing
number of travelers from smaller US cities who previously had to
travel through Miami, New York or San Juan, Caribbean 360 states.

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

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

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

(Delta Air Lines Bankruptcy News; 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.


FERRO CORP: Expects US$500-Mln Net Revenues in 2007 Fourth Quarter
------------------------------------------------------------------
Ferro Corporation has revised its 2007 fourth quarter earnings
estimates and a likely non-cash charge for goodwill impairment.

              Revised 2007 Fourth Quarter Estimates

Ferro announced that earnings per share for the 2007 fourth
quarter are now expected to be approximately 3 cents below the low
end of analysts' current earnings estimates.  As reported by
Thomson First Call, analysts expect earnings between 15 and 23
cents per share, excluding special charges.  The company's lower
earnings expectations are primarily a result of a manufacturing
interruption in December at its Bridgeport, New Jersey, organic
chemical manufacturing plant and increased raw material costs
across the company's businesses.  The company expected net sales
for the fourth quarter to be approximately US$570 million,
exceeding its previous estimates, primarily due to surcharges and
other product pricing actions and favorable changes in foreign
exchange rates.

Manufacturing operations were interrupted at the Bridgeport site
in mid-December when an excess quantity of product was
accidentally discharged into the plant's on-site wastewater
treatment facility.  As a result, the company incurred costs
from scrapped product and additional wastewater treatment
resulting in pre-tax charges of approximately US$2 million in the
2007 fourth quarter, or approximately 3 cents per diluted share.

Also during the fourth quarter, Ferro continued to experience
rising raw material costs, including sharply rising costs for
cobalt and chrome oxide used in the company's Inorganic
Specialties business.  Since September, market prices for
cobalt have increased over 50 percent and chrome oxide has
increased over 35 percent.  Through changes in product pricing the
company was largely able to cover the actual raw material cost
increases, however the company was unable to increase prices
sufficiently to maintain gross margins.  In addition, the higher
product prices resulting from increasing raw materials costs has
caused some customers to reduce purchases or choose other lower
cost materials.

"While I am disappointed with the fourth quarter results, we
remain focused on continuing to improve the profitability of the
Company," said Ferro Chairman, President and Chief Executive
Officer James F. Kirsch.  "Despite the difficult 2007 U.S. markets
in housing, automobiles and appliances, we generated net cash from
operating activities and reduced debt."

Looking forward, Mr. Kirsch noted, "We are on track with the
restructuring programs we have initiated over the past 18 months,
and we remain committed to delivering our goal of ten percent
operating margins as we enter 2010.  We will accomplish this
through organic growth of higher-value products such as our
conductive metal pastes for solar applications, coupled with
incremental savings generated from our ongoing restructuring
programs, aggressive pursuit of manufacturing productivity
improvements, improved pricing for value, and expense reductions."

Ferro will provide details of the 2007 fourth quarter and full
year financial results in a press release and conference call on
Friday, Feb. 29.  Detailed instructions for accessing the
conference call will be announced shortly.

                  Goodwill Impairment Evaluation

Ferro annually assesses existing goodwill for impairment, as
required by Statement of Financial Accounting Standards (SFAS) No.
142.  The assessment consists of two tests. In the first step,
Ferro tests goodwill for impairment by comparing the
fair value of the businesses associated with the goodwill against
the book value.  If the net book value of a business exceeds its
fair value, the Company must perform a second step to measure
potential impairment.

Ferro has completed the first step of its annual goodwill
assessment which indicated that the book value of the polymer
additives and pharmaceutical businesses exceeds their fair values.
Consequently, Ferro is now performing step two of the goodwill
impairment assessment.

The anticipated impairment in the polymer additives business is
triggered by the cumulative negative effect on earnings of a
cyclical downturn in certain of the business' primary U.S.-based
end markets, including housing and automobiles; anticipated
additional product costs due to recent hazardous material
legislation and regulations, such as the newly enacted European
Union "REACH" registration system that requires chemical suppliers
to perform toxicity studies of the components of their products
and to register certain information; and higher forecasted capital
expenditures related to the business.  The anticipated impairment
of goodwill in Ferro's pharmaceutical business is primarily the
result of a longer time to transition the business from a supplier
of food supplements and additives to a supplier of high-value
pharmaceutical products and services.

While Ferro has not concluded its accounting analysis, the Company
now anticipates that it is likely that a material, pre-tax, non-
cash impairment charge will be recorded that may represent a
substantial portion, and potentially all, of the approximately
US$114 million of goodwill recorded on its balance sheet for the
polymer additives and pharmaceutical businesses.  The company had
goodwill of US$74 million associated with the polymer additives
business and $40 million associated with the pharmaceutical
business recorded as of Dec. 31, 2006.  As required, the company
will also be assessing the value of other long-term assets in
these businesses.

All impairment charges deemed necessary as a result of the current
evaluations will be included in Ferro's fourth quarter 2007
financial results.  The charge will not impact Ferro's cash
balance or future cash flows, or result in a violation of any
covenant of any of Ferro's debt instruments.  Additionally, the
charge will not affect the payment of the 14.5 cents per share
dividend on Ferro's common stock that was previously approved by
the company's board of directors.  The dividend is payable on
March 10 for shareholders of record on Feb. 15.

                         About Ferro Corp.

Headquartered in Cleveland, Ohio, Ferro Corporation (NYSE: FOE)
-- http://www.ferro.com/-- is a global producer of an array of
specialty chemicals including coatings, enamels, pigments,
plastic compounds, and specialty chemicals for use in industries
ranging from construction, pharmaceuticals and
telecommunications.  Ferro operates through the following five
primary business segments: Performance Coatings, Electronic
Materials, Color and Performance Glass Materials, Polymer
Additives, and Specialty Plastics.  Revenues were US$2 billion
for the FYE ended Dec. 31, 2006.

Ferro Corp. has global locations in Argentina, Australia,
Belgium, Brazil, China, among others.

                          *     *     *

In May 2007, Moody's Investors Service assigned a B1 corporate
family rating to Ferro Corporation.  Moody's also assigned a B1
rating to the company's US$200 million senior secured notes
(issued as unsecured notes in 2001) due in January 2009 and an
SGL-3 speculative grade liquidity rating.


FIDEICOMISO FINANCIERO: Moody's Rates Debt Securities at B1
-----------------------------------------------------------
Moody's Latin America has assigned a rating of Aa2.ar (Argentine
National Scale) and of B1 (Global Scale, Local Currency) to the
debt securities of Fideicomiso Financiero Rio Cuarto I issued by
Nacion Fideicomisos S.A. -- acting solely in its capacity as
Issuer and Trustee.

The ratings are based on:

  -- The credit quality of the seller, the Municipality of Rio
     Cuarto rated by Moody's Aa3.ar (Argentine National Scale)
     and B1 (Global Scale, Local Currency).

  -- The assignment of the Public Works Fund (Fondo de Obras
     Publicas) for the repayment of the debt securities.

  -- The additional collateral represented by certain tax
     revenues over non-subsidized real estate properties.

  -- The availability of a reserve fund equivalent to two months
     of interest, principal and trust expenses; and the
     obligation of the Municipality to replenish the reserve
     fund if required by the Trustee.

  -- The legal structure of the transaction.

                           The Assets

The assets in this transaction include, among others:

  (a) The cash flow generated by the Public Works Fund (Fondo de
      Obras Publicas), a fund created in 1992 in order to
      finance public works in the Municipality of Rio Cuarto, in
      the province of Cordoba, Argentina.

  (b) Collections of certain municipal real estate taxes.

  (c) Any liquid assets available in the trust, including any
      funds deposited in the trust account to be replenished
      by the Municipality, if required.

The rating assigned to this transaction is linked to the rating of
the Municipality of Rio Cuarto (B1/Aa3.ar/stable outlook).
Therefore, any future change in the rating of the Municipality may
lead to a change in the rating assigned to this transaction.

                           Structure

Nacion Fideicomisos (Issuer and Trustee) issued one class of debt
securities denominated in Argentine pesos.  The rated securities
bear a floating interest rate (BADLAR + 11.25%) with a fixed cap
of 26%.

The debt securities are primarily back by the Public Works Fund.
The fund was created in 1992 as an instrument to finance the
public works in the City of Rio Cuarto.  It is funded with an
amount paid by local taxpayers in Rio Cuarto.  This amount is
calculated as an additional 10% rate over these concepts:

  a) Municipal real estate taxes, vehicles taxes, and commerce
     and industry taxes.

  b) Public services bills, such as: public water service,
     electricity and gas.

  c) An additional fixed amount of ARS450,000 submitted by the
     Municipal Entity of Public Health (Ente Municipal de
     Obras Sanitarias), which is the city's water service
     provider and sewage system administrator.

In addition to the Public Works Fund, investors will have the
benefit of additional collateral represented by the municipal tax
charged over certain real estate properties.  Finally, the
transaction features a reserve account to be funded at closing
with two months of principal and interest payments, plus estimated
trust expenses for two months.  If monthly collections are not
sufficient to replenish the reserve account to this level, the
Municipality is obliged to top up the reserve fund up to this
required level.  This feature effectively establishes legal
recourse against the Municipality of Rio Cuarto.

                 The Municipality of Rio Cuarto

On Oct. 29, 2007, Moody's assigned issuer ratings of Aa3.ar
(Argentina National Scale) and B1 (Global Scale, Local Currency)
to the Municipality, based on its ability to generate a high level
of own-source revenue, positive operating results which have been
sufficient to fund increasing capital investments and a debt level
which, while high, carries a manageable debt service cost.

The Municipality of Rio Cuarto has achieved positive operating
results over the last five years, and current revenues exceeded
current spending by nearly 20% in 2005 and 16% in 2006.  These
positive results allowed the municipality to cover its capital
investment requirements without borrowing.

The ratings are constrained by the operating environment for
regional and local governments in Argentina, which is
characterized by a GDP per capita that is high for a developing
country, very high GDP volatility, and a very low ranking on the
World Bank's Government Effectiveness Index, indicating a high
level of systemic risk.  This environment is joined to an
institutional framework under which regional and local governments
carry significant responsibility for public services while nearly
all rely heavily on federal transfers, suggesting a low level of
fiscal flexibility in relation to revenue.

Rating Action:

  -- ARS35,000,000 in Floating Rate Debt Securities of
     "Fideicomiso Financiero Municipalidad de Rio Cuarto I",
     rated Aa2.ar (Argentine National Scale) and B1 (Global
     Scale, Local Currency).


GIDEON INVESTMENT: Claims Verification Deadline is March 26
-----------------------------------------------------------
Pablo Arturo Melaragni, the court-appointed trustee for Gideon
Investment S.A.'s bankruptcy proceeding, verifies creditors'
proofs of claim until March 26, 2008.

Mr. Melaragni will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance  in Buenos Aires will determine if the verified claims
are admissible, taking into account the trustee's opinion, and the
objections and challenges that will determine if the verified
claims are admissible, taking into account the trustee's opinion,
and the objections and challenges that will be raised by Gideon
Investment 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 Gideon Investment's
accounting and banking records will be submitted in court.

Infobae didn't state the reports submission deadlines.

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

The trustee can be reached at:

         Pablo Arturo Melaragni
         Viamonte 783
         Buenos Aires, Argentina


INVERSIONES Y REPRESENTACIONES: Earns ARS5.8MM in First Half '08
----------------------------------------------------------------
Inversiones y Representaciones Sociedad Anonima has reported its
results for First Half fiscal year 2008 ended Dec. 31, 2007.

                          Highlights

   -- Operating results for the business segments look very
      solid.  Revenue for the first six months of the current
      fiscal year increased by almost 46% to ARS497 million in
      comparison with those from the same period of the previous
      fiscal year, while operating results were up by 35.5% to
      ARS141.9 million.  EBITDA increased 37% to ARS200 million.
      If the company consider only the rental segments (Shopping
      Centers, Offices and Hotels), EBITDA margins have made
      favorable progress when compared the first six-month
      period of the present fiscal year against the same period
      for the year before, and the last quarter against the
      first quarter of fiscal 2008.

   -- The share of the different segments in net sales was:
      sales and developments ARS63 million; offices and other
      rental properties ARS44.8 million; shopping centers
      ARS172.6 million; hotels ARS76 million; credit cards
      ARS139.9 million; and financial operations and others
       ARS0.3 million.

   -- In the Shopping Center segment, where there is an
      excellent performance, overall area continues to expand:
      in addition to the projects currently under way, have
      reached an agreement for the purchase of a shopping center
      known as "Soleil Factory," located in the San Isidro
      district, Province of Buenos Aires, which is to be
      formalized when certain conditions are met.

   -- In the coming months, in the Sales and Developments
      segment, the company expects to launch its first
      undertaking through the association with Cyrela Brazil
      Realty.  During IIQ Fiscal Year 2008, the company sold its
      rights over the Torre Renoir II project, reporting a
      profit of US$4.7 million

   -- Regarding the company's land reserves, in November 2007
      the Mayor of the City of Buenos Aires approved the project
      as recommended by the Council of Urban Environmental
      Planning.  The company is now evaluating which steps to
      take next in the definition and implementation of the
      project.

   -- The company has completed the expansion works of the Hotel
      Llao Llao, which were finally opened at the end of
      December.

   -- In the second quarter of the present fiscal year, company
      subsidiary Banco Hipotecario partially reversed the
      negative results of the first quarter, which were due to
      unusual circumstances such as differences of valuation for
      holdings of particular financial assets in the portfolio
     at below-market value.  The business indicators continue to
      be solid.

   -- As of Nov. 14, 2007, holders of convertible bonds and
      options had converted and exercised respectively a large
      portion of their holdings, raising the total company
      outstanding shares to 578,676,460.  As a result of this,
      there are no outstanding convertible bonds or warrants.
      Furthermore, during this period the company cancelled
      other obligations and loans for a total of US$40 million.
      After the close of the period Fitch Rating increased the
      company's international debt ratings from B level to B+
      and the national ratings from A- to AA-

                    Financial Highlights
            (In thousands of Argentine Pesos: ARS)

                              Dec. 31, 2007      Dec. 31, 2006
                              -------------      -------------
   Total Sales                   496,616              340,331
   Operating income              141,901              104,694
   Net Income                      5,784               66,120
   Net Income per GDS               0,10                 1,51
   Net Income per GDS diluted       0,10                 1,21

                              Dec. 31, 2007       Dec. 31, 2006
                              -------------       -------------
   Total Current Assets           982,900            1,175,790
   Non Current Assets           3,173,074            2,969,109
   Total Assets                 4,155,974            4,144,899
   Short-Term debt                 77,712              196,655
   Total Current Liabilities        558,219            652,082
   Long-term debt                 1,096,097          1,217,866
   Total Non Current Liabilities  1,263,996          1,395,693
   Total Liabilities              1,822,215          2,047,775
   Minority interest                458,672            450,410
   Shareholders' Equity           1,875,087          1,646,714

               About Inversiones y Representaciones

Created in 1943, Inversiones y Representaciones S.A. aka IRSA
(NYSE: IRS) (BCBA: IRSA) is a leading company with activities in
the business of offices, commercial centers and hotels.  It is the
only company in the industry whose shares are listed on the Bolsa
de Comercio de Buenos Aires and The New York Stock Exchange.
Through its subsidiaries, IRSA manages an expanding top portfolio
of shopping centers and office buildings, primarily in Buenos
Aires.  The company also develops residential subdivisions and
apartments (specializing in high-rises and loft-style conversions)
and owns three luxury hotels.  Additionally, IRSA owns a 11.8%
stake in Banco Hipotecario, Argentina's largest mortgage supplier
in the country which shareholder's equity amounted to
ARS2,247.6 million.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 5, 2008, Fitch Ratings upgraded Inversiones y
Representaciones S.A.'s ratings including its Foreign currency
Issuer Default Rating to 'B+' from 'B', Local currency IDR to 'B+'
from 'B', US$150 million notes due in 2017 to 'B+/RR4' from 'B'.
Fitch said all ratings have stable outlooks.


SCO GROUP: Gets Court OK to File Chapter 11 Plan Until May 11
-------------------------------------------------------------
The Hon. Kevin Gross of the United States Bankruptcy Court for the
District of Delaware further extended The SCO Group Inc. and its
debtor-affiliates' exclusive periods to:

   a) file a Chapter 11 plan until May 11, 2008; and

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

As reported in the Troubled Company Reporter on Jan. 8, 2008,
the Debtors told the Court that they need more time to resolve an
issue regarding Novell Inc.'s rights in connection with the sale
of the Unix business.  The Debtor said that Novell objected to the
sale of that business and that the asset was a threshold issue
that must be determined before any sale.

Accordingly, the Debtors said that they have decided to allow the
dispute to narrow before they file a Chapter 11 plan.

The Debtors reminded the Court that Novell obtained permission to
prosecute its counterclaim against the Debtor in the United States
Bankruptcy Court for the District of Utah.

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

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

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


TEMPEST WORLDCOM: Proofs of Claim Verification Ends on March 20
---------------------------------------------------------------
Nestor Rodolfo Del Potro, the court-appointed trustee for Tempest
Worldcom Argentina S.A.'s bankruptcy proceeding, verifies
creditors' proofs of claim until March 20, 2008.

Mr. Del Potro will present the validated claims in court as
individual reports on May 2, 2008.  The National Commercial Court
of First Instance  in Buenos Aires will determine if the verified
claims are admissible, taking into account the trustee's opinion,
and the objections and challenges that will determine if the
verified claims are admissible, taking into account the trustee's
opinion, and the objections and challenges that will be raised by
Tempest Worldcom 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 Tempest Worldcom's
accounting and banking records will be submitted in court on
June 13, 2008.

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

The trustee can be reached at:

         Nestor Rodolfo Del Potro
         Avenida Corrientes 1291
         Buenos Aires, Argentina


TENNECO INC: Bags Ford Motor's Hot-End Emission Control Business
----------------------------------------------------------------
Tenneco Inc. has been awarded by Ford Motor Company with a new
hot-end emission control business on vehicles launching in model-
year 2009 and 2010.

"We are extremely pleased to be selected by Ford for this
significant new emissions control business," said Tenneco
Chairperson and Chief Executive Officer, Gregg Sherrill.  "We
continue to generate growth by investing in technology and
enhancing our engineering capabilities to provide just what our
customers need to meet current and future emissions requirements."

Tenneco will supply components, including catalytic converters,
that make up the "hot end" of the exhaust system for the Ford F-
150 light-duty truck, Ford Expedition, Lincoln Navigator and the
Ford Econoline vehicles.  Tenneco currently supplies the "cold
end" (mufflers and tailpipes) of the exhaust system for the Ford
F-150, Ford Expedition and Lincoln Navigator, now making it a
full-system supplier for those platforms.  The company was also
awarded additional emission control content on the gasoline
version of the F250/F350 Super-Duty in addition to what it already
supplies on both the gasoline and diesel versions of the vehicles
that launched in 2006.

For 2010 model-year, Tenneco will supply emission control
components for some of Ford's mid and upper mid-size passenger
vehicle lines.  This represents growth in the car segment with
Ford Motor Company and supports Tenneco's global strategy to
increase passenger car business.

Tenneco referenced this new business in its third quarter 2007
earnings release last October, but was unable to name the customer
at that time.

Tenneco's Elkhart, Indiana, Seward Nebraska, Cambridge, Ontario,
Ligonier, Indiana, Marshall, Michigan, and Kansas City, Missouri
facilities will be involved in manufacturing components or final
assembly.  When fully launched, the company estimates all these
programs together will represent approximately a 2.5% increase in
its value-added revenues compared to its 2007 value-added sales.

Tenneco is a strategic supplier to Ford Motor as a member of the
company's Aligned Business Framework supplier group.

Tenneco's global emissions operations include 48 emission control
manufacturing facilities and four global engineering centers
devoted to emission control engineering and advanced technology.
The company's engineering capabilities and broad range of emission
control products and systems help vehicle manufacturers address
increasingly stringent emissions and noise regulations, the drive
for better fuel efficiency and the emission control demands of
diesel and other alternative fuel and hybrid vehicles.

                         About Ford Motor

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

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

                         About Tenneco

Based in Lake Forest, Illinois, Tenneco Inc., (NYSE: TEN) --
http://www.tenneco.com/-- manufactures automotive ride and
emissions control products and systems for both the original
equipment market and aftermarket.  Brands include Monroe(R),
Rancho(R), and Fric Rot ride control products and Walker(R) and
Gillet emission control products.  The company has operations in
Argentina, Japan, and Germany, with its European operations
headquartered in Brussels, Belgium.  The company has approximately
21,000 employees worldwide.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Nov. 6, 2007, Fitch Ratings assigned a rating of 'BB-' to Tenneco
Inc.'s new senior unsecured notes due 2015.  The new notes replace
a portion of the company's existing US$475 million in 10.25%
senior secured second-lien notes for which the company is
tendering.  Fitch said the rating outlook is positive.


TRANS ROGAL: Proofs of Claim Verification Deadline is March 21
--------------------------------------------------------------
Carlos Enrique Wulff, the court-appointed trustee for Trans Rogal
S.R.L.'s bankruptcy proceeding, verifies creditors' proofs of
claim until March 21, 2008.

Mr. Wulff will present the validated claims in court as individual
reports on May 5, 2008.  The National Commercial Court of First
Instance  in Buenos Aires will determine if the verified claims
are admissible, taking into account the trustee's opinion, and the
objections and challenges that will determine if the verified
claims are admissible, taking into account the trustee's opinion,
and the objections and challenges that will be raised by Trans
Rogal 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 Trans Rogal's
accounting and banking records will be submitted in court on
June 16, 2008.

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

The trustee can be reached at:

         Carlos Enrique Wulff
         Virrey del Pino 2354
         Buenos Aires, Argentina


UTSTARCOM INC: Appoints Diego Martinez as Regional VP & Gen. Mgr.
-----------------------------------------------------------------
UTStarcom, Inc. has named Diego Martinez as its Americas regional
vice president and general manager.

Based in UTStarcom's regional headquarters in Sunrise, Florida,
Mr. Martinez will lead the company's sales efforts in Central
America, Latin America (CALA) and North America while overseeing
an extensive team of sales, engineering and support professionals
in more than 30 countries.

"Diego will be a strong asset to UTStarcom in CALA and North
America, especially as we focus on new opportunities in IPTV and
broadband in these key geographies," said UTStarcom senior vice
president of international sales and marketing, , David King.  "As
a seasoned industry executive, he brings a wealth of experience
and market knowledge to help fuel the company's regional growth."

Prior to joining UTStarcom, Martinez served as vice president of
application sales for Alcatel-Lucent and held various positions
during his 15 year tenure with the company.  He has also held
multiple roles with leading telecommunications companies such as
AT&T Network Systems, LG and Digital Equipment Corporation.

Mr. Martinez holds a master's degree in business administration
from Universidad de los Andes in Bogota, Colombia; a master's
degree in international business administration from Nova
Southeastern University in Davie, Florida; and a bachelor of
science degree in electronic engineering from Universidad
Javeriana in Bogota, Colombia.

                         About UTStarcom

Headquartered in Alameda, California, UTStarcom Inc. (Nasdaq:
UTSI) -- http://www.utstar.com/-- provides IP-based, end-to-end
networking solutions and international service and support.  The
company sells its broadband, wireless, and handset solutions to
operators in both emerging and established telecommunications
markets around the world.  The company maintains operations in
France, Italy, Spain, China, India, Japan, Argentina and Brazil.

                          *     *     *

As reported on Jan. 18, 2007, noteholders of UTStarcom Inc.'s
7/8% convertible subordinated notes due 2008 agreed to the
proposed amendments of certain provisions of the indenture
pursuant to which the notes were issued and a waiver of rights
to pursue remedies available under the indenture with respect to
certain default.

Under the terms of the indenture, during the period beginning
Jan. 9, 2007, and ending 5:30 p.m., May 31, 2007, any failure by
the company to comply with certain provisions will not result in
a default or an event of default, and the Notes will accrue an
additional 6.75% per annum in special interest from and after
Jan. 9, 2007, to the maturity date of the Notes, unless the
Notes are earlier repurchased or converted.


* ARGENTINA: India Targets 3 Billion Trade by 2010
--------------------------------------------------
India projects a 3.0 billion bilateral trade with Argentina by
2010, AFP cited minister of state for external affairs Anand
Sharma as saying.

Specifically, India is interested in investing in bio-
technologies, Mr. Sharma told AFP.

According to AFP, Argentina exports 800 million dollars of
products to India while Indian exports to Argentina total
around 300 million dollars.

The news could go well with Argentine President Cristina
Fernandez's goal of a 10% yearly economic growth.

Citing the National Statistics Institute, Bill Faries of Bloomberg
News relates that Argentina's economy expanded 9.6 percent in
November from a year earlier, breaking the 9.2 percent median
estimate of eight economists surveyed by Bloomberg.

According to Bloomberg News, the pace was a result of increased
consumer spending.

"Consumption is flying in Argentina.  This economy just keeps
moving," Santiago Lopez Alfaro, an economist with Delphos
Investments in Buenos Aires, told Bloomberg News.

Argentina's economy, Bloomberg News says, is in its fifth year of
growth averaging more than 8 percent a year, fueled by domestic
consumption and record international prices for exports like soy
and wheat.

                         *     *     *

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.



=========
A R U B A
=========

VALERO ENERGY: Moody's Reviews Low-B Ratings for Likely Upgrade
---------------------------------------------------------------
Moody's Investors Service placed Valero Energy Corporation's
ratings on review for upgrade.  The outlook had been positive.

In spite of a cyclical downtrend in refining margins, the move to
a review for upgrade reflects conservative leverage at year-end
2007, providing room to absorb a degree of expected higher
leverage this year; management's statements to Moody's on the
timing, scale, and use of after-tax proceeds from potential asset
sales as the company evaluates its strategic alternatives, which
include assessing opportunities to divest refineries to optimize
its asset base; potential ranges of resulting 2008 leverage; ample
back-up liquidity; and its pro-forma solid position as a large,
geographically diversified independent refiner with an investment
grade business profile.

Timing stock buyback activity to coincide with potential asset
sale proceeds is a key aspect of Valero Energy Corporation's
ability to improve its current ratings.  Simultaneously, Valero is
conducting an important heavy multi-year capital spending program,
led by expected major value adding projects at its Lake Charles,
Port Arthur, and Quebec City refineries.  If the ratings are
upgraded, Moody's would subsequently reevaluate the new ratings if
it appears that Valero Energy Corporation's profile will veer from
Moody's view of suitable leverage for the ratings and in relation
to the cash flow outlook.

Valero's geographic diversity, with a large refining portfolio in
four key regions, mitigates the impact of inherent real
unscheduled downtime risk and geographically diversifies its
regional margin trends as well. Valero Energy Corporation's deep
conversion capacity also gives it greater diversification of its
crude oil sourcing activity and allows it to also to convert
cheaper low-quality crude oil and heavy intermediate feedstock
into light refined products. In each of the possible near term
pro-forma refining portfolio scenarios, Valero Energy Corporation
would clearly retain the scale and diversification of an
investment grade refiner.

In the absence of an extended serious downturn, a higher rating
would appear able to withstand an increase in debt of in the range
of US$2 billion.  At this point, it appears that management's
potential 2008 actions, including the ultimate scale of stock
buyback activity and its use of after-tax proceeds from a
potential divestiture of the Aruba refinery (one of the plants for
which the Company is pursuing strategic alternatives), renders
leverage in a suitable range for the ratings. This general
proportionality would need to be maintained in the event of
additional divestitures.

This rating action follows Moody's discussions with Valero Energy
Corporation executives concerning the leverage parameters within
which it will execute its de-capitalization program. That program
involves large 2008 stock buyback activity, one to three potential
refinery divestitures as it reviews strategic alternatives for
certain plants, and use of any potential asset sale proceeds to
fund stock buybacks and heavy capital spending. Moody's expects
Valero Energy Corporation's capital spending and buyback activity
to substantially exceed cash flow, barring a return to strong up-
cycle refining margins. Moody's also believes margins will be on a
generally weakening trend over the next several years.

Refining is a highly volatile and cyclical business and Moody's
believes that margins will continue to moderate through the
decade. Regionally, Valero Energy Corporation's softest margin
outlook appears to be in its West Coast market. In addition to
softening margin trends, the ratings are also restrained by the
potential for leveraging acquisitions, including foreign
acquisitions. However, all other things held equal, Valero Energy
Corporation enters the year with sufficiently low leverage to
absorb a degree of re-leveraging without jeopardizing a higher
rating.

Headquartered in San Antonio, Texas, Valero Energy Corporation is
North America's largest independent refining and marketing
company, currently owning 16 oil refineries with nameplate crude
oil distillation capacity of 2.6 barrels per day (bpd) and,
including intermediate feedstock, 3.1 million bpd.  VLO has one of
the largest deep conversion capacities in North America.  Its
current portfolio of refineries displays a somewhat above average
Nelson Complexity Index of 11.1 . Valero Energy Corporation is
evaluating strategic alternatives for one to three refineries and
each of the potential pro-forma scenarios would increase its
current Nelson index.  The pending major capital spending programs
would further increase Valero Energy Corporation value adding
capacity and complexity downstream from crude oil distillation.
The company has operated an oil refinary in Aruba.

As reported in the Troubled Company Reporter on Sept. 2, 2005,
Moody's confirmed, among others, Valero Energy Corporation's
Ba1 rated subordinated debentures and Ba2 rated mandatory
convertible preferred stock.  The ratings still hold to date,
subject to the conclusion of Moody's rating review for possible
upgrade.



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

HARRAH'S ENT: Issues US$6.3 Billion Aggregate Sr. Secured Notes
---------------------------------------------------------------
Harrah's Entertainment Inc., in a regulatory filing dated Feb. 1,
2008, disclosed that its wholly owned subsidiary, Harrah's
Operating Company Inc., issued US$4,932,417,000 aggregate
principal amount of 10.5% senior cash pay notes due 2016 and
US$1,402,583,000 aggregate principal amount of 10.5%/11.5% senior
toggle notes due 2018.

The notes mature on Feb. 1, 2016, and Feb. 1, 2018, respectively,
pursuant to an indenture, dated Feb. 1, 2008, between the company,
the Guarantors and U.S. Bank National Association, as trustee.
The notes are guaranteed by Harrah's Entertainment Inc. and each
wholly owned domestic subsidiary of the company that pledges its
assets to secure the company's new senior secured credit
facilities.

The company may redeem the notes, in whole or part, at any time
prior to Feb. 1, 2012 with respect to the senior cash pay notes,
and Feb. 1, 2013, with respect to the senior toggle notes at a
price equal to 100% of the principal amount of the notes redeemed
plus accrued and unpaid interest to the redemption date and a
"make-whole premium."  The company may redeem the notes, in whole
or in part, on or after Feb. 1, 2012, with respect to the senior
cash pay notes, and Feb. 1, 2013, with respect to the senior
toggle notes at the redemption prices set forth in the Indenture.

At any time before Feb. 1, 2011, the company may choose to redeem
up to 35% of the principal amount of each of the senior cash pay
notes and the senior toggle notes at a redemption price equal to
110.75% of the face amount thereof with the net proceeds of one or
more equity offerings so long as at least 50% of the aggregate
principal amount of the notes at maturity issued of the applicable
series remains outstanding afterwards.

The Indenture contains restrictive covenants relative to, among
other things, the incurrence of additional debt, the issuance of
certain preferred shares, and the payment of dividends or other
distributions in respect of its capital stock.

                   Registration Rights Agreement

On Feb. 1, 2008, Harrah's Operating Company Inc. entered into a
registration rights agreement with Citigroup Global Markets Inc.,
Banc of America Securities LLC, Credit Suisse Securities (USA)
LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities Inc.,
Merrill Lynch, Pierce, Fenner & Smith Incorporated as
representatives of Citigroup Global Markets Inc., Deutsche Bank
Securities Inc., Banc of America Securities LLC, Credit Suisse
Securities (USA) LLC, J.P. Morgan Securities Inc., Merrill Lynch,
Pierce, Fenner & Smith Incorporated, Bear, Stearns & Co. Inc.,
Goldman, Sachs & Co., Morgan Stanley & Co. (the "Initial
Purchasers") in connection with the notes, pursuant to the
Indenture.

Subject to the terms of the Registration Rights Agreement, the
company will use its commercially reasonable efforts to register
with the SEC exchange notes having substantially identical terms
as the notes described above and to exchange freely tradable
exchange notes for the notes described above within 365 days after
the issue date of the notes described above (the "effectiveness
target date").  The company will use its commercially reasonable
efforts to cause each exchange offer to be completed or, if
required, to have one or more shelf registration statements
declared effective, within 30 business days after the
effectiveness target date.

A full-text copy of the Indenture, dated as of Feb. 1, 2008, by
and among the company, the Guarantors and U.S. Bank National
Association, as trustee, is available for free at:

               http://researcharchives.com/t/s?27ea

A full-text copy of the Registration Rights Agreement, dated as of
Feb. 1,2008, is available for free at:

               http://researcharchives.com/t/s?27eb

                  About Harrah's Entertainment

Headquartered in Las Vegas, Nevada, Harrah's Entertainment
Inc.(NYSE: HET) -- http://www.harrahs.com/-- through its wholly
owned subsidiary Harrah's Operating Company Inc., provides branded
casino entertainment.  Since its beginning in Reno, Nevada 70
years ago, Harrah's has grown through development of new
properties, expansions and acquisitions, and now owns or manages
casinos on four continents.  The company's properties operate
primarily under the Harrah's(R), Caesars(R) and Horseshoe(R) brand
names; Harrah's also owns the London Clubs International family of
casinos.  In January 2007, it signed a joint venture agreement
with Baha Mar Resorts Ltd. to operate a resort in Bahamas.

                         *     *     *

As reported in the Troubled Company Reporter-Latin America on
Jan. 17, 2008, Moody's Investor Service assigned a B2 Corporate
FamilyRating and Speculative Grade Liquidity Rating of SGL-3 to
Harrah's Entertainment Inc.  Moody's also assigned ratings to the
these new debt to be issued by Harrah's Operating Company Inc.:
senior secured guaranteed bank revolving credit facility at Ba2,
senior secured guaranteed term loans at Ba2, and senior unsecured
guaranteed notes at B3.



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

DIGICEL LTD: Hires Tanya Menzies as CEO for Tonga Unit
------------------------------------------------------
Digicel has appointed Jamaican Tanya Menzies as Chief Executive
Officer of Digicel Tonga.  As CEO, Ms. Menzies will be responsible
for ensuring that Digicel delivers the best value, customer care
and network coverage to the people of Tonga.

Digicel Pacific Ltd, a sister company to Digicel Group in the
Caribbean, acquired the Tonga mobile operator TONFON in November
2007.  Digicel already has a presence in Samoa and Papua New
Guinea and is committed to building a seamless network
spanning the entire South Pacific region.

Ms. Menzies joined Digicel in 2001 as a customer care agent just
one month after the company's inaugural launch in Jamaica. As
Digicel grew to become the number one mobile operator in the
region, Ms. Menzies worked on the rollout of Digicel operations
across the Caribbean holding a number of positions including
Customer Care Support Manager in Trinidad & Tobago.  She joined
Digicel Pacific as Customer Care Director in September 2006.

According to Vanessa Slowey, CEO of Digicel Pacific: "We are
delighted that Tanya has taken the challenge of establishing our
footprint in Tonga and confident she can lead her team to become
the number one mobile provider in the country.  Tanya brings to
the role an inherent sense of what Digicel is all about - the
customer is number one.  This customer-centric focus has led
Digicel to success both here in the South Pacific and the
Caribbean."

To date a total of ten Caribbean staff have taken opportunities
with Digicel Pacific Ltd to help in the rollout of new operations
there.

Ms. Menzies has a Diploma in Business Administration and attended
the Shortwood Teachers' College in Kingston for three years,
studying Early Childhood Education.

"I joined Digicel Jamaica in May 2001 as a call centre agent" said
Ms. Menzies, newly appointed CEO of Digicel Tonga, "that and
subsequent roles have contributed to my overall development.  I
have now taken these experiences to the South Pacific in pursuit
of achieving the same success Digicel is experiencing in the
Caribbean.  I consider this appointment as an opportunity and a
great achievement and I would say to anyone, don't limit yourself,
believe and you will achieve."

"I feel very much at home here in Tonga and I am committed to
ensuring that Digicel delivers the excellent mobile service the
people of Tonga deserve as well as becoming an active member of
the Tonga community" added Ms. Menzies.

With a population of 102,000 people and mobile penetration
currently at just 35%, Digicel looks forward to maximizing the
strong growth opportunities in the Tonga market.  The entry of
Digicel into Tonga also expects to bring significant benefits to
the local businesses and the tourism industry in Tonga while at
the same time increasing the competitiveness of Tonga as a
regional business center.

                          About Digicel

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

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 20, 2007, Fitch Ratings downgraded Digicel Limited's
Foreign currency Issuer Default Rating to 'B-' from 'B' and
US$450 million senior notes due 2012 to 'B-/RR4' from'B/RR4'.


* BARBADOS: IMF Official Says Tourism Vulnerable to US Slowdown
---------------------------------------------------------------
On his visit to Barbados Monday, Mr. Murilo Portugal, Deputy
Managing Director of the International Monetary Fund said
the country's small and open economy is vulnerable to a
deteriorating external environment -- particularly if it
affects its major tourist markets.

Mr. Purtogal did not specify the slowing external environment
in his statement but CaribWorldNews said Tuesday that the IMF
top official is predicting the U.S. economic slowdown will
also cause a slowdown in Caribbean and Latin American economies.

While the times ahead may prove challenging, Mr. Portugal
stated however that he is confident that the government of
Barbados will tackle such challenges with skill and resolve.

"Given its strong democratic tradition and political
institutions, Barbados is well-placed to reap the benefits of
globalization," he said.

Mr. Portugal met with Prime Minister David Thompson, Minister
of State Darcy Boyce, and Central Bank Governor Marion Williams
in that visit.

He also met with representatives of the donor community to
reiterate the IMF's continued involvement in delivering
technical assistance to the Caribbean region for another three
years.

According to Mr. Portugal, the extension through 2010 provides
support from a pool of international donors to the Caribbean
Regional Technical Assistance Center, located in Barbados.

"I am very pleased that this support will allow CARTAC to
continue providing high-quality capacity building to the public
sectors in 21 Caribbean countries across several areas, such as,
public financial management; tax and customs; financial sector
supervision; capital market development; macroeconomic management;
and statistics," he commented.

Mr. Portugal also visited the offices of the Caribbean
Development Bank and discussed with CDB President Compton Bourne
about collaboration to promote regional development and sound
economic governance.



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


CATALYST PAPER: To Acquire Snowflake Mill from AbitibiBowater
-------------------------------------------------------------
Catalyst Paper Corporation has entered into a definitive agreement
with a subsidiary of AbitibiBowater to acquire its Snowflake
Arizona recycled newsprint mill for a total consideration of
US$161 million in cash.  The purchase price excludes trade
receivables of approximately US$19 million that are being retained
by AbitibiBowater.  The acquisition will be financed through a
combination of Catalyst Paper's revolving credit facilities and a
proposed C$125 million rights offering.

The Acquisition

The Snowflake mill, a leading recycled newsprint producer with
annual production capacity of 375,000 metric tonnes on two modern
paper machines, is regarded as one of the lowest cost newsprint
mills in North America.  The acquisition of the Snowflake mill
will increase Catalyst Paper's total newsprint production capacity
to approximately 980,000 metric tonnes.  The mill also houses a
corrugating medium machine owned by Smurfit Stone Container
Corporation, which is operated by the Snowflake mill.  The Apache
Railway Company, a short-line railroad operating freight service
between Snowflake, AZ and Holbrook, AZ is also included in the
transaction.

In 2006, the Snowflake mill generated earnings before interest,
taxes, depreciation and amortization of US$58 million on net
revenues of US$195 million.  For the last 12 months ending
September 30, 2007, the Snowflake mill generated EBITDA of US$30
million on net revenues of US$185 million. These EBITDA figures
exclude AbitibiBowater corporate charges.

The acquisition of the Snowflake mill assets will provide the
company with:

   * one of the lowest-cost newsprint mills in North America;

   * geographic, fibre and currency diversification;

   * the opportunity to expand into one of North America's fastest
     growing metropolitan regions, with no other newsprint mill
     operating within a 1,600 kilometre radius;

   * an energy self-sufficient asset with the potential to sell
     excess electricity onto the power grid;

   * expected annual synergies of at least US$10 million through
     increased scale which will provide general overall cost
     reduction in purchasing, sales, marketing and other services,
     and optimization of product distribution networks; and

   * favourable business environment and industry hosting
     conditions.

"Snowflake is a first-class newsprint mill," noted Richard
Garneau, president and chief executive officer of Catalyst Paper.
"We are very pleased to announce this transaction as the Snowflake
mill will improve our cost-competitiveness, strengthen our
presence on the west coast of North America and provide us with a
more freight logical way to serve existing as well as new
customers.  In addition, this acquisition will provide Catalyst
with a natural hedge against Canadian dollar fluctuations and is
particularly timely in the current environment of virgin fibre
supply constraints."

The acquisition of the Snowflake mill is subject to the consent of
the U.S. Department of Justice, other customary conditions and
completion of the rights offering financing and is expected to
close in the second quarter of 2008.  The transacting parties have
also agreed to a three-year supply contract under which
AbitibiBowater will provide approximately 40% of the Snowflake
mill's recycled fibre supply in the first year, decreasing in
proportion over the life of the agreement.  Catalyst Paper intends
to source the remainder of the mill's fibre requirements directly
from the recycled fibre market in western North America.

Financing the Acquisition

The acquisition will be funded through a combination of debt and
equity.  Catalyst Paper intends to raise the equity portion by way
of a C$125 million rights offering.  Catalyst Paper has entered
into an oversubscription agreement with Third Avenue International
Value Fund, a fund related to Third Avenue Management LLC, under
which TAVIX has agreed to exercise rights to subscribe for up to
C$62.5 million of subscription receipts not otherwise subscribed
for under the rights offering. TAVIX, along with other client
accounts for which Third Avenue Management LLC serves as
investment adviser, is Catalyst Paper's largest shareholder.

In addition, Catalyst Paper has entered into a standby purchase
agreement for the remaining C$62.5 million with BMO Capital
Markets and Genuity Capital Markets, pursuant to which the standby
purchasers have agreed to take up any subscription receipts not
otherwise subscribed for under the rights offering.  The remainder
of the purchase price consideration will be financed using
availability under Catalyst Paper's revolving credit facilities.
The rights offering, which is subject to regulatory approval, will
be made pursuant to a prospectus to be filed in each of the
provinces of Canada.  A registration statement will also be filed
with the U.S. Securities and Exchange Commission.  Further details
of the distribution of the rights will be provided in the
prospectus and registration statement.

Under the terms of the rights offering, common shareholders of
Catalyst Paper as of a record date which is yet to be determined,
will receive rights to subscribe for subscription receipts of
Catalyst Paper.  Each subscription receipt will be automatically
exchanged for one Catalyst Paper common share without additional
consideration on completion of the Snowflake mill acquisition.
The subscription price under the rights offering will be a 40%
discount to the theoretical ex-rights price based on the five-day
volume weighted average price of the common shares of the Company
on the TSX prior to filing the final prospectus.  Application will
be made to list the rights for trading on the TSX.  The rights
will be exercisable for at least 21 days following the date of
mailing of the final prospectus.

Board Approval and Financial Advisor

The Board of Directors of Catalyst Paper has approved these
transactions.  BMO Capital Markets acted as exclusive financial
advisor to Catalyst Paper on the acquisition.

                       About Catalyst Paper

Headquartered in Vancouver, B.C., Catalyst Paper Corp. (TSX:CTL)
produces mechanical printing papers in North America.  The
company also produces market kraft pulp and owns western Canada's
largest paper recycling facility.  With five mills at sites
within a 160-kilometre radius on the south coast of BC,
Catalyst Paper has a combined annual capacity of 2.4 million
tonnes of product.

The company has sales distributions in the United States,
Asia, Australasia, and Europe.  In Latin America, the company
specifically has sales distributions in Central America.


CATALYST PAPER: S&P Says Ratings Unaffected by Snowflake Buyout
---------------------------------------------------------------
Standard & Poor's Ratings Services disclosed that the ratings on
Catalyst Paper Corp. (B/Negative/--) are unaffected by the
acquisition of the Snowflake, Arizona, mill from AbitibiBowater
Inc. for US$161 million (merged entities Abitibi-Consolidated Inc.
and Bowater Inc. are both rated B/Negative/--).  The acquisition
improves Catalyst's business risk profile because it will lower
newsprint production costs, diversify operations, and reduce the
company's exposure to a strong Canadian dollar.  All of Catalyst's
mills are in B.C.  The acquisition should improve leverage
modestly as it will be financed by 78% equity and 22% debt.
However, it will reduce liquidity under Catalyst's credit facility
by CAD36 million.  As of Sept. 30, 2007, the company had CAD239
million available under its credit facility and no cash on hand.

Headquartered in Vancouver, B.C., Catalyst Paper Corp. (TSX:CTL)
produces mechanical printing papers in North America.  The
company also produces market kraft pulp and owns western Canada's
largest paper recycling facility.  With five mills at sites
within a 160-kilometre radius on the south coast of BC,
Catalyst Paper has a combined annual capacity of 2.4 million
tonnes of product.

The company has sales distributions in the United States,
Asia, Australasia, and Europe.  In Latin America, the company
specifically has sales distributions in Central America.


* BELIZE: Government to Avoid Bond Issuances
--------------------------------------------
Belize's Prime Minister Dean Barrow told Catherine Bremer at
Reuters that he will avoid bond issuances and instead will only
borrow from international lenders.

Belize aims for growth and wants to meeting interest payments,
Reuters says, citing the official.

Prime Minister Barrow told Reuters that Belize's US$1.2 billion
public debt was restructured in late 2006 to ward off a default.
He admitted that the restructuring of the debt was tricky but
manageable.

Prime Minister Barrow commented to Reuters, "There's no way we can
operate without contracting more debt but (it) would have to be
multilateral debt, concessionary loans from the World Bank, IDB
(Inter-American Development Bank), international organizations
like that. We're certainly not interested in going to the
commercial markets the way the outgoing government did.  The
economy is growing so we do feel we'll be able to service the
current debt and still take on the additional borrowing on
concessionary terms."

Prime Minister Barrow told Reuters that he plans for new
legislation to make it easier to fight embezzlement to attract
local and foreign investment in areas like oil drilling and
ecotourism.  He said he will also consider creating a capital
market in Belize to attract equity capital.

"We're going to operate on a straight basis with investors.  We
believe the private sector is what ought to drive the economy and
we are going to do all we can to create the sort of enabling
environment in which this can take place," Prime Minister Barrow
commented to Reuters.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Dec. 26, 2007, Standard & Poor's Ratings Services assigned B long-
and short-term sovereign local and foreign currency ratings on
Belize.  Standard & Poor's also placed 3 sovereign foreign
currency recovery rating and a B+ transfer and convertibility
assessment rating.  S&P said the outlook for these ratings is
stable.



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

ASIA GAMMA: Sets Final Shareholders Meeting for March 10
--------------------------------------------------------
Asia Gamma Investments Ltd. will hold its final shareholders
meeting on March 10, 2008, at Argonaut Limited, Argonaut House, 5
Park Road, Hamilton HM O9, Bermuda.

These matters will be taken up during the meeting:

   -- receiving an account showing the manner in which
      the winding-up of the company has been conducted
      and its property disposed of and hearing any
      explanation that may be given by the liquidator;

   -- determination by resolution the manner in
      which the books, accounts and documents of the
      company and of the liquidator shall be
      disposed; and

   -- passing of a resolution dissolving the
      company.


CLAYTON PARTNERS: Sets Final Shareholders Meeting for March 14
--------------------------------------------------------------
Clayton Partners Limited will hold its final shareholders meeting
on March 14, 2008, at 10:00 a.m., at PricewaterhouseCoopers,
Dorchester House, 7 Church Street, Hamilton, HM 11, Bermuda.

These matters will be taken up during the meeting:

   -- receiving an account showing the manner in which
      the winding-up of the company has been conducted
      and its property disposed of and hearing any
      explanation that may be given by the liquidator;

   -- determination by resolution the manner in
      which the books, accounts and documents of the
      company and of the liquidator shall be
      disposed; and

   -- passing of a resolution dissolving the
      company.


MAN MAC: Proofs of Claim Filing Deadline is February 15
-------------------------------------------------------
Man Mac Rellerli 10A Limited's creditors are given until
Feb. 15, 2008, to prove their claims to Beverly Mathias, the
company's liquidator, or be excluded from receiving any
distribution or payment.

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

Man Mac' shareholder decided on Jan. 30, 2008, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.

The liquidator can be reached at:

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


SENATE INSURANCE: Proofs of Claim Filing Deadline is March 7
------------------------------------------------------------
Senate Insurance Company Limited's creditors are given until
March 7, 2008, to prove their claims 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.

Senate Insurance's shareholder decided to place the company into
voluntary liquidation under Bermuda's Companies Act 1981.

Claim forms can be submitted to:

         30 Parliament Street
         Hamilton HM 12 Bermuda
         E-mail: lebasden@gov.bm.


SOLAR ENTERPRISES: Proofs of Claim Filing is Until February 22
--------------------------------------------------------------
Solar Enterprises Limited's creditors are given until Feb. 22,
2008, to prove their claims to Peter Pearman, 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.

Solar Enterprises' shareholder decided on Jan. 31, 2008, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.

The liquidator can be reached at:

         Peter Pearman
         Clarendon House, Church Street
         Hamilton, Bermuda



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

SENSIENT TECH: Earns US$77.8 Million in Year Ended Dec. 31
----------------------------------------------------------
Sensient Technologies Corporation reported US$18.2 million of net
income for the three months ended Dec. 31, 2007, compared to net
income of US$15.3 million for the same period in 2006.  For the
full year of 2007, the company earned US$77.8 million compared to
net income of US$66.4 million in 2006.

Revenue reached a record level of US$300.9 million for the fourth
quarter, up 10.3% from the comparable period in 2006.  Revenue for
the twelve months ended Dec. 31, 2007, was US$1.2 billion, an
increase of 7.8% over the prior year.  Foreign currency
translation had a favorable impact on revenue of 5% and 4%,
respectively, for the fourth quarter and year.

Cash provided by operating activities increased 33.7% in the
fourth quarter to US$24.5 million, compared to US$18.4 million in
the prior year's comparable period.  For the year, cash provided
by operating activities was US$105.2 million, an increase of 6.0%
in comparison to US$99.2 million in the prior year.

"This quarter marks our eighth consecutive quarter of strong
earnings growth," said Kenneth P. Manning, Chairman and Chief
Executive Officer of Sensient Technologies Corporation.  "We had
an outstanding year.  Each of our operating groups contributed to
the excellent results, and we expect our businesses to perform
well in 2008."

                         Business Review

The Flavors & Fragrances Group reported record fourth quarter
revenue and operating income.  Revenue for the quarter increased
7.7% to US$199.4 million, compared to US$185.0 million in last
year's comparable period.  Fourth quarter operating income was up
11.3% to US$30.1 million, compared to US$27.0 million in the
fourth quarter of 2006.  Revenue for the twelve months ended
Dec. 31, 2007, increased 6.9% to US$783.7 million, and operating
income was up 12.3% to US$117.3 million.  Group revenue for the
quarter and twelve month period benefited from favorable foreign
currency translation and from improved pricing and higher
volumes.  Operating income for both periods rose on the higher
sales.  Group operating margins in 2007 improved 80 basis points
to 15.0%.

The Color Group's fourth quarter revenue increased 14.7% to
US$95.6 million, compared to US$83.4 million in last year's
comparable period.  Operating income for the quarter was up 20.3%
to US$16.6 million, compared to US$13.8 million reported in the
fourth quarter of 2006.  Revenue for the twelve months ended
Dec. 31, 2007, increased 7.9% to US$377.9 million and operating
income was up 12.7% to US$67.0 million.  Color Group revenue for
the quarter and year reflects favorable foreign currency
translation and solid volume growth in food and beverage colors.
Volume growth in cosmetic colors was also strong. Group operating
margins in 2007 improved 70 basis points to 17.7%.

                   About Sensient Technologies

Headquartered in Milwaukee, Wisconsin, Sensient Technologies
Corp. -- http://www.sensient-tech.com/-- manufactures and
markets colors, flavors and fragrances.  Sensient also employs
technologies to develop specialty chemicals for inkjet inks,
display imaging systems and other applications.  The company's
principal products include flavors, flavor enhancers and
bionutrients; fragrances and aroma chemicals; dehydrated
vegetables and other food ingredients; natural and synthetic
food colors; cosmetic and pharmaceutical additives; inkjet inks,
technical colors, and specialty dyes and pigments, and chemicals
for laser printing and flat screen displays.  In Europe,
Sensient maintains operations facilities and/or sales offices in
Belgium, Bosnia, Croatia, Cyprus, Czech Republic, Germany,
United Kingdom, France, Estonia, United Kingdom, Macedonia,
Poland, Romania, Serbia and Montenegro, Turkey, Ukraine, and
Wales.  In Latin America, it has operations in Argentina,
Bolivia, Brazil, Colombia, Costa Rica, Chile, Mexico, Peru,
Uruguay and Venezuela.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
July 23, 2007, Standard & Poor's Ratings Services has revised
its outlook on Milwaukee, Wis.-based Sensient Technologies Corp.
to stable from negative.  At the same time, Standard & Poor's
affirmed its 'BB+' corporate credit and senior unsecured debt
ratings on the company.  Approximately US$508 million of debt
was outstanding as of June 30, 2007.



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

ARROW ELECTRONICS: To Acquire ACI Assets
----------------------------------------
Arrow Electronics Inc. has entered into an agreement to acquire
all of the assets and operations of ACI Electronics LLC.  ACI is
one of the largest independent distributors of electronic
components used in defense and aerospace applications.

"With the acquisition of ACI, we continue to execute on our
strategic priority to pursue opportunities in the more rapidly
growing areas of the market.  In the last five years, ACI has
grown sales organically at a compound annual growth rate of
approximately 20 percent.  ACI will further bolster our number one
position in the North American defense and aerospace marketplace,
and when combined with our existing Arrow/Zeus business, we will
have leading market share in many technology segments including
military discretes.  This strategic transaction will add to the
breadth of our customer base and increase our staff of highly
experienced sales professionals, while strengthening our
relationships with key suppliers," said Michael J. Long, president
of Arrow Global Components.

ACI is headquartered in Denver, Colorado and distributes products
in the United States, Israel, Spain and Italy.  With approximately
60 employees, ACI provides value-added distribution services to
over 2,000 customers who manufacture military and commercial
aircraft systems, and other military applications.  ACI is
recognized by its customers as the distributor of choice for its
product knowledge, value-added services, superior customer
service, and strong supplier relationships.  Many of ACI's
customers and suppliers have been with the company for more than
20 years.  Total sales in 2007 were approximately US$60 million
and the acquisition will be immediately accretive to earnings by
US$0.03 to US$0.04 in 2008.

                     About Arrow Electronics

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

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

                          *     *     *

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


BANCO BRADESCO: Cuts Monthly Interest Rates to 2.64% from 3.70%
---------------------------------------------------------------
Banco Bradesco said in a statement that it has reduced monthly
interest rates to 2.64% from 3.70% on a credit card for pensioners
in the federal social security system Instituto Nacional de la
Seguridad Social.

In January lenders can't charge over 3.70% per month or service
fees for INSS-linked credit cards and credit card payments can't
be over 10% of a pensioner's monthly benefits, Business News
Americas relates, citing the Brazilian government.

For retirement loans, the government has a 2.64% limit on monthly
interest rates to INSS beneficiaries and caps monthly loan
payments at 20% of benefits, BNamericas says.

Banco Bradesco increased credit card operations by 50.6% to
BRL36.9 billion and payroll and retirement loans 59.1% to BRL6.11
billion in 2007.  The bank wants to increase payroll and
retirement loans by up to 110% in 2008.  It will boost retail
loans by up to 29%, BNamericas states.

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

                          *     *     *

On Nov. 12, 2007, Moody's assigned a Ba2 foreign currency deposit
rating to Banco Bradesco.


BANCO NACIONAL: Reaches BRL64.9 Billion Disbursements in 2007
-------------------------------------------------------------
The performance yielded by Banco Nacional de Desenvolvimento
Economico e Social has achieved a historical record in 2007.  The
disbursements summed up BRL64.9 billion, 24% higher than what was
recorded in 2006, and approvals were of BRL98.8 billion, 33% above
what was registered last year.  The projects framed and the
consultations that account for the amount of future approvals and
disbursements totaled BRL117 billion and BRL126.8 billion,
respectively, in 2007, revealing increases of 23% and 20%.

Infrastructure - The growth of disbursements and approvals of the
BNDES system last year was largely influenced by the acceleration
of infrastructure investments.  In 2007, the projects of this
particular sector received BRL25.6 billion from the Bank,
representing a 62% expansion in comparison to 2006.  The
approvals, which serve as a thermometer for the volume of future
disbursements, increased 104% under the same means of comparison,
reaching BRL45.7 billion last year.  Amongst the main projects
approved one finds the financings to the Gas-pipeline Nordeste-
Sudeste [Gasene] - BRL4 billion, and the gas-pipeline Urucu-Manaus
- BRL2.5 billion, and to the expansion and modernization of
Telefonica's network - BRL2 billion.

The highlight in the infrastructure approvals, per segment, is
left with investments on electric energy.  The expansion reached
207%, summing BRL12.8 billion.  Amongst the main projects one
finds the Estreito Hydroelectric Plant project (BRL2.7 billion and
1,087 MW); the Foz do Chapeco Hydroelectric Plant project (BRL1.6
billion and 855 MW); and the Simplicio Hydroelectric Plant project
(BRL1 billion and 333.7 MW).  BNDES's direct participation in the
sector enabled the total investments of BRL17.8 billion.

The plants are part of Programa de Aceleracao do Crescimento
[Growth Acceleration Program] - PAC, and comprise the potential
portfolio of 183 projects included in the PAC which are currently
under BNDES evaluation.  In 2007, the Bank disbursed BRL5 billion
for PAC investments in the energy, logistics, social and urban
areas, besides the public administration area.  The 183 projects
sum up financings of BRL65.6 billion and total investments of
BRL109.9 billion.

Industry - The Bank's approvals for the industry sector reached
BRL38.2 billion and the disbursements came to BRL26.4 billion in
2007, amounts which represent 39% and 40%, respectively, of the
total released and approved last year, but these amounts also
equal to a 3% and 2% reduction in comparison to the sector's
performance in 2006.

The slight drop is largely explained by the reduction of financing
to exportation (BNDES-Exim), pre and post-shipping) in 2007.  The
disbursement for industry, once waiving out BNDES-Exim operation,
presents a 39% growth, totaling BRL19.8 billion.
The remaining BRL5.8 billion represent financings granted to
exportation operations.  The approvals for the industry sector,
following the same criterion, grew 44% last year, summing up
BRL31.4 billion.  The retraction of the industry sector was also
influenced by the seasonal behavior of some segments such as paper
and cellulose, which function under investment cycles.

Amongst the main projects approved for industry, in general, are
those to MMX for the construction of infrastructure for iron ore
mine exploration in the State of Minas Gerais, construction of a
port terminal in Sao Joao da Barra, and a ore mine duct, in the
amount of BRL2.3 billion; the financing for the acquisition of
national machines and equipment by CSA iron and steel company, in
Santa Cruz [State of Rio de Janeiro] of BRL1.5 billion; and the
financing of the Atlantico Sul shipyard for the building of 10
ships, in the amount of BRL1.3 billion.

BNDES' releases for machines and equipment carried out through the
Finame credit line totaled BRL20.5 billion in 2007, which
represents a 59% growth when compared to the previous year.  The
investment acceleration regarding capital goods reveals the
dynamism of the Brazilian economy in the past year.  Besides the
expressive increase in the amount released, the number of Finame
operations grew 48% in comparison to last year, reaching 81.6
thousand in 2007.

Farming and cattle raising - The positive 2007 performance
evidenced the end of a crisis experienced by the sector in the
last few years.  BNDES' disbursements grew 46%, reaching BRL5
billion, and approvals, which recorded 22% expansion in
comparison to last year, totaled BRL5.2 billion.  The farming and
cattle raising sector represented 8% of the Bank's disbursement in
2007.

Company-size - The micro, small and medium-size companies received
from BNDES BRL12.1 billion last year.  The amount represents a 50%
expansion in relation to 2006 releases.  The disbursements for
individual entrepreneurs grew 31%, summing up BRL4 billion in
2007.  One-hundred and eighty-six thousand operations were
recorded for smaller size companies and individual entrepreneurs,
equivalent to a 69% increase when compared to last year.

The BNDES Card disbursed, in 2007, BRL509.2 million, an amount
126% superior to the BRL225.2 million recorded in 2006.  Last
year, more than 38 thousand BNDES Card operations were made - 118%
more than the 17.6 thousand of 2006.  The Bank has already issued
132 thousand cards directed to micro, small and medium-size
companies.

                       About Banco Nacional

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

                          *     *     *

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


BANCO NACIONAL: Power Sector Loans Increase 207% to BRL12.8 Bil.
----------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social's head
Luciano Coutinho told the press that the firm's loan approvals
increased 207% to BRL12.8 billion for the power sector in 2007,
compared to 2006.

The loans will help prevent power rationing in the coming years
"despite the tight supply-demand balance," Mr. Coutinho told
BNamericas.

Banco Nacional loans for the power sector last year will open the
door for investments of BRL17.8 billion, Business News Americas
relates, citing Mr. Coutinho.

According to BNamericas, most of the loans Banco Nacional
authorized in 2007 will be allocated for the construction of these
hydro plants:

          -- 1.09-giga watt Estreito,
          -- 855-megawatt Foz do Chapeco, and
          -- 334-megawatt Simplecio.

Banco Nacional infrastructure director Wagner Bittencourt
commented to BNamericas, "Approval for construction of new hydros,
small hydros, wind farms and cogen projects will boost power
availability in Brazil.  When we finance renewables projects, we
help the country ensure power supply, especially when hydrological
conditions are not favorable."

Mr. Coutinho told BNamericas that loan approvals this year is
promising as Banco Nacional will help fund the construction of the
Santo Antonio and Jirau hydro plants.  Talks for the funding of
the Santo Antonio are ongoing, while Banco Nacional will have
another financing contract for Jirau.  The funding portfolio for
the power sector will have "tremendous boost" this year due to
these projects.

Loans for small hydros and cogeneration will also increase in
2008, BNamericas states, citing Mr. Coutinho.

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

                         *     *     *

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


BR MALLS: Forms Partnership to Manage 70 Villa Daslu Stores
-----------------------------------------------------------
BR Malls Participacoes S.A. and Daslu has formed a partnership to
manage Villa Daslu, an area connected to the Daslu Boutique that
encompasses approximately 70 stores.  The partnership was formed
through controlling subsidiaries and does not include management
of the Daslu Boutique and its international brands, which remain
under current Daslu management.

BR Malls currently owns and manages over 30 shopping malls in
Brazil and will bring its management expertise to the 8,500 m2
that make up Villa Daslu, an area that together with the 7,000 m2
of the Daslu Boutique, forms the Espaco Daslu.

What the partnership means to BR Malls is the opportunity to
complement its current portfolio by positioning the company in the
high-end fashion brand industry.  BR Malls will take its expertise
in managing shopping malls to Villa Daslu, implementing
professional management to the business.

Additionally, the partnership will allow Daslu to focus on its
core business -- the Daslu Boutique -- and on its expansion
strategy in Sao Paulo and in other important cities in Brazil.

The transaction is a consortium between BR Malls and Daslu and
does not involve or result in any purchasing agreement between
both parties.

                           About Daslu

Daslu and Villa Daslu -- Founded in 1958 by the two partners Lucia
Piva de Albuquerque and Lourdes Aranha, and led since the early
nineties by the Piva de Albuquerque family, the multi-brand
boutique holds international recognition as a unique case in the
high-end fashion business.

Located at Vila Olimpia in Sao Paulo, the Villa Daslu offers a
commercial space of 20 thousand m2 and a vast mix of products and
services including fashion for men, women, and children, sports
goods, internal decoration and design, beauty & health and
entertainment & gastronomy.  There are currently over 110
international brands and 93 national brands in addition to spaces
dedicated solely to the sale of products with the Daslu brand
name.

                         About BR Malls

BR Malls is the largest integrated shopping mall company in Brazil
with a portfolio of 30 malls, representing 894.3 thousand m2 in
total Gross Leasable Area (GLA) and 372.6 thousand m2 in owned
GLA.  BR Malls is also Brazil's largest shopping mall service
provider, managing and leasing 29 malls.

                         *     *     *

As reported in the Troubled Company Reporter-Latin America on
Oct. 29, 2007, Standard & Poor's Ratings Services assigned its
'BB-' rating to BR Malls International Finance Ltd.'s forthcoming
perpetual notes.  It is a wholly owned subsidiary of Brazil-based
shopping mall company BR Malls Participacoes S.A. (BR Malls; BB-
/Stable/--).  BR Malls and its direct subsidiaries unconditionally
guarantee the perpetual notes.


DELPHI CORP: Lenders Have Problems Syndicating $6.1 Billion Loan
----------------------------------------------------------------
Delphi Corp.'s plan to secure $6.1 billion in financing for its
exit from Chapter 11 bankruptcy protection is in jeopardy as bank
lenders tried to cope with credit markets that remain virtually
shut, The Wall Street Journal says, citing people familiar with
the matter.

J.P. Morgan Chase & Co. and Citigroup Global Markets, which agreed
to arrange funding for Delphi, are having difficulties syndicating
the loan to other lenders, the Journal's source said.

The Journal's Jeffrey McCracken and John D. Stoll relate that
hedge funds and other investors dislike the borrowing terms,
saying that they aren't priced appropriately for the risk
involved.

Investors and others involved in the matter say Delphi's former
parent, General Motors Corp., may have to step in and provide
financing to fill the gap, the Journal relates.  Yet too much GM
involvement might spook stock investors, who don't want Delphi too
beholden to GM and its price-cutting demands, the Journal says.

Fritz Henderson, GM's chief financial officer, has said GM is
exploring alternatives in the event Delphi cannot obtain the
Chapter 11 exit financing it planned, Dow Jones Newswires say.
Mr. Henderson, however, didn't give any details on what kind of
alternatives GM was exploring with Delphi and its investor group,
Dow Jones notes.

"Our objective is to have Delphi exit," Mr. Henderson said in an
interview, WSJ notes.  "What we've tried to do is be constructive
with Delphi and the plan-investors as to how we play a role."

KeyBanc analyst Brett Hoselton said in a note to investors Tuesday
that GM may have to provide financing itself, Dow Jones reports.

Delphi could consider trying to get a smaller exit-financing
package, but falling U.S. auto sales and lowered forecasts for GM
sales in 2008 "probably mean Delphi needs more money, not less,"
WSJ quotes a person familiar with Delphi's talks with their
lenders.  "Any logical person would look at the situation in the
U.S. economy and say Delphi needs more," that source told WSJ.

As reported in the Troubled Company Reporter on Feb. 4, 2008,
Delphi and its debtor-affiliates expect to consummate their
First Amended Joint Plan of Reorganization on or before March 31,
2008, Delphi Corp. Vice President and Chief Restructuring Officer
John D. Sheehan said in a regulatory filing with the U.S.
Securities and Exchange Commission.

As reported in the Troubled Company Reporter on Jan. 9, 2008, the
Debtors reduced their Exit Financing from the Court-approved $6.8
billion to $6.1 billion.  The reduced facilities include:

   (a) $1.6 billion in an asset-backed revolving credit
       facility;

   (b) $3.7 billion in a first-lien term loan facility; and

   (c) $825 million in a second lien term loan facility.

The TCR reported Jan. 30, 2008, that the Honorable Robert Drain of
the U.S. Bankruptcy Court for the Southern District of New York
permits members of the Official Committee of Unsecured Creditors
and the Official Committee of Equity Security Holders appointed in
Delphi's bankruptcy cases to participate in any syndicate of
lenders assembled to provide exit financing
facilities for the Debtors' emergence from Chapter 11.

                     About Delphi Corp.

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

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

The Court approved Delphi's First Amended Joint Disclosure
Statement and related solicitation procedures for the solicitation
of votes on the First Amended Plan on Dec. 20, 2007.  The Court
confirmed the Debtors' First Amended Plan on Jan. 25, 2008.

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

                           *     *     *

As reported in the Troubled Company Reporter on Jan. 16, 2008,
Moody's Investors Service assigned ratings to Delphi Corporation
for the company's financing for emergence from Chapter 11
bankruptcy protection: Corporate Family Rating of (P)B2;
$3.7 billion of first lien term loans, (P)Ba3; and $0.825 billion
of 2nd lien term debt, (P)B3.  In addition, a Speculative Grade
Liquidity rating of SGL-2 representing good liquidity was
assigned.  The outlook is stable.

As reported in the Troubled Company Reporter on Jan. 11, 2008,
Standard & Poor's Ratings Services expects to assign its 'B'
corporate credit rating to Troy, Michigan-based automotive
supplier Delphi Corp. upon the company's emergence from Chapter 11
bankruptcy protection, which may occur by the end of the first
quarter of 2008.  S&P expects the outlook to be negative.

In addition, Standard & Poor's expects to assign these
issue-level ratings: a 'B+' issue rating (one notch above the
corporate credit rating), and '2' recovery rating to the company's
proposed $3.7 billion senior secured first-lien term loan; and a
'B-' issue rating (one notch below the corporate creditrating),
and '5' recovery rating to the company's proposed $825 million
senior secured second-lien term loan.


FORD MOTOR: Awards Hot-End Emission Control Business to Tenneco
---------------------------------------------------------------
Ford Motor Company awarded Tenneco Inc. with a new hot-end
emission control business on vehicles launching in model-year 2009
and 2010.

"We are extremely pleased to be selected by Ford for this
significant new emissions control business," said Tenneco
Chairperson and Chief Executive Officer, Gregg Sherrill.  "We
continue to generate growth by investing in technology and
enhancing our engineering capabilities to provide just what our
customers need to meet current and future emissions requirements."

Tenneco will supply components, including catalytic converters,
that make up the "hot end" of the exhaust system for the Ford F-
150 light-duty truck, Ford Expedition, Lincoln Navigator and the
Ford Econoline vehicles.  Tenneco currently supplies the "cold
end" (mufflers and tailpipes) of the exhaust system for the Ford
F-150, Ford Expedition and Lincoln Navigator, now making it a
full-system supplier for those platforms.  Tenneco was also
awarded additional emission control content on the gasoline
version of the F250/F350 Super-Duty in addition to what it
already supplies on both the gasoline and diesel versions of the
vehicles that launched in 2006.

For 2010 model-year, Tenneco will supply emission control
components for some of Ford's mid and upper mid-size passenger
vehicle lines.  This represents growth in the car segment with
Ford Motor Company and supports Tenneco's global strategy to
increase passenger car business.

Tenneco referenced this new business in its third quarter 2007
earnings release last October, but was unable to name the customer
at that time.

Tenneco's Elkhart, Indiana, Seward Nebraska, Cambridge, Ontario,
Ligonier, Indiana, Marshall, Michigan, and Kansas City, Missouri
facilities will be involved in manufacturing components or final
assembly. When fully launched, Tenneco estimates all these
programs together will represent approximately a 2.5% increase in
its value-added revenues compared to its 2007 value-added sales.

Tenneco is a strategic supplier to Ford as a member of the
company's Aligned Business Framework supplier group.

Tenneco's global emissions operations include 48 emission control
manufacturing facilities and four global engineering centers
devoted to emission control engineering and advanced technology.
The company's engineering capabilities and broad range of emission
control products and systems help vehicle manufacturers address
increasingly stringent emissions and noise regulations, the drive
for better fuel efficiency and the emission control demands of
diesel and other alternative fuel and hybrid vehicles.

                          About Tenneco

Based in Lake Forest, Illinois, Tenneco Inc., (NYSE: TEN) --
http://www.tenneco.com/-- manufactures automotive ride
and emissions control products and systems for both the original
equipment market and aftermarket.  Brands include Monroe(R),
Rancho(R), and Fric Rot ride control products and Walker(R) and
Gillet emission control products.  The company has operations in
Argentina, Japan, and Germany, with its European operations
headquartered in Brussels, Belgium.  The company has approximately
21,000 employees worldwide.

                        About Ford Motor

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

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

                          *     *     *

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


GENERAL MOTORS: Paying US$0.25 First Quarter Dividend on March 10
-----------------------------------------------------------------
General Motors Corp. disclosed a first-quarter dividend of US$0.25
per share on GM common stock.  The dividend is payable March 10,
2008, to holders of record as of Feb. 15, 2008.  The dividend is
unchanged from the previous quarter.

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

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Nov. 9, 2007, Moody's Investors Service affirmed its rating for
General Motors Corporation (B3 Corporate Family Rating, Ba3
senior secured, Caa1 senior unsecured and SGL-1 Speculative
Grade Liquidity rating) but changed the outlook to Stable from
Positive.  In an environment of weakening prospects for US auto
sales GM has announced that it will take a non-cash charge of
US$39 billion for the third quarter of 2007 related to
establishing a valuation allowance against its deferred tax
assets (DTAs) in the US, Canada and Germany.

As reported in the Troubled Company Reporter on Oct. 23, 2007,
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating and other ratings on General Motors Corp. and
removed them from CreditWatch with positive implications, where
they were placed Sept. 26, 2007, following agreement on the new
labor contract.  S&P said the outlook is stable.


GENERAL MOTORS: Invests US$69 Mil. in Ohio Diesel Engine Plant
--------------------------------------------------------------
General Motors Corp. disclosed an investment of US$69 million in
its DMAX plant in Moraine to manufacture a new Duramax 6.6-liter
V-8 turbo diesel engine that will meet stringent emissions
standards in 2010.  DMAX Limited is a joint venture between GM and
Isuzu Motors Limited and was established as a diesel engine
company in 1998.

The investment includes renovations to the plant, new machinery
and tooling to support manufacturing of the new diesel engine.
Renovations are expected to begin immediately. As a result of the
investment, the DMAX plant will retain over 1,000 jobs.

"GM is committed to continuing to reduce fuel consumption and
emissions across its portfolio and around the world," John
Buttermore, GM Powertrain vice president of global manufacturing,
said.  "The 2010 Duramax diesel is an integral part of that
transformation, as well as a component of GM's strategy to
diversify vehicle energy sources.  This new investment
demonstrates GM's commitment to continue to invest in technologies
that reduce the impact of our vehicles on the environment, while
maintaining performance attributes required by customers in the
areas of towing and hauling loads."

The announcement brings GM's total investment in the State of Ohio
to more than US$1 billion over the last two years.

"Our investment in the DMAX joint venture is a significant vote of
confidence in our employees and IUE-CWA Local 797, who have
demonstrated their commitment and dedication to benchmark
performance in safety, quality and efficiency required in today's
competitive business climate," Mr. Buttermore continued.  "This
joint venture is a great example of what can be achieved with a
successful global partnership and I extend my appreciation to the
leadership of Isuzu for their commitment to the success of this
operation."

Mr. Buttermore also thanked Ohio's leaders on the federal, state,
county and local levels, including Ohio Governor Ted Strickland,
Lt. Governor Lee Fisher and the Ohio Department of Development,
Montgomery County Board of Commissioners and Moraine Mayor Leonard
Johnson, for providing the business case to support GM's
investments in Ohio.

"General Motors' continuing investment in its Ohio manufacturing
base demonstrates the strength of our partnership and Ohio's
competitive business climate," Ohio Governor Ted Strickland said.
"I commend GM for investing in our state and the technologies that
put Ohio at the forefront of clean vehicle manufacturing."

The 2010 model year 6.6-liter V-8 Duramax diesel will use a
selective catalytic reduction NOx after-treatment system with a
diesel particulate filter to help achieve the 2010 Tier 2 Bin 5
and LEV 2 emissions standards, and it will be compliant in all 50
states.

GM first introduced the Duramax diesel in the U.S. in the 2001
model year, and since then customer enthusiasm for this heavy-duty
diesel has been outstanding.  In fact, GM's heavy-duty pickup
truck market share has jumped nearly tenfold in the seven years
that Duramax engines have been offered.

In the DMAX joint venture with Isuzu Motors Ltd., GM owns 60% and
Isuzu 40%.  The 584,000-square foot DMAX plant employs 1,195
hourly and salaried employees with annual production near 200,000
engines.  Hourly employees are represented by the IUE-CWA Local
797.  In April 2007, DMAX produced its one millionth Duramax
diesel engine.

                             About GM

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

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Nov. 9, 2007, Moody's Investors Service affirmed its rating for
General Motors Corporation (B3 Corporate Family Rating, Ba3
senior secured, Caa1 senior unsecured and SGL-1 Speculative
Grade Liquidity rating) but changed the outlook to Stable from
Positive.  In an environment of weakening prospects for US auto
sales GM has announced that it will take a non-cash charge of
US$39 billion for the third quarter of 2007 related to
establishing a valuation allowance against its deferred tax
assets (DTAs) in the US, Canada and Germany.

As reported in the Troubled Company Reporter on Oct. 23, 2007,
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating and other ratings on General Motors Corp. and
removed them from CreditWatch with positive implications, where
they were placed Sept. 26, 2007, following agreement on the new
labor contract.  S&P said the outlook is stable.


GENERAL MOTORS: May Have to Fund Delphi's Exit, Investors Say
-------------------------------------------------------------
Delphi Corp.'s plan to secure $6.1 billion in financing for its
exit from Chapter 11 bankruptcy protection is in jeopardy as bank
lenders tried to cope with credit markets that remain virtually
shut, The Wall Street Journal says, citing people familiar with
the matter.

J.P. Morgan Chase & Co. and Citigroup Global Markets, which agreed
to arrange funding for Delphi, are having difficulties syndicating
the loan to other lenders, the Journal's source said.

The Journal's Jeffrey McCracken and John D. Stoll relate that
hedge funds and other investors dislike the borrowing terms,
saying that they aren't priced appropriately for the risk
involved.

Investors and others involved in the matter say Delphi's former
parent, General Motors Corp., may have to step in and provide
financing to fill the gap, the Journal relates.  Yet too much GM
involvement might spook stock investors, who don't want Delphi too
beholden to GM and its price-cutting demands, the Journal says.

Fritz Henderson, GM's chief financial officer, has said GM is
exploring alternatives in the event Delphi cannot obtain the
Chapter 11 exit financing it planned, Dow Jones Newswires say.
Mr. Henderson, however, didn't give any details on what kind of
alternatives GM was exploring with Delphi and its investor group,
Dow Jones notes.

"Our objective is to have Delphi exit," Mr. Henderson said in an
interview, WSJ notes.  "What we've tried to do is be constructive
with Delphi and the plan-investors as to how we play a role."

GM yesterday reported a $722 million fourth-quarter loss, to end
the year a staggering $38.7 billion in the red -- believed to be
the largest annual loss ever by an auto maker, the Journal's John
Stoll reports.

GM recorded a $622 million charge associated with its support of
Delphi's restructuring efforts as well as $552 million charge for
pension benefits provided to Delphi employees and retirees.

KeyBanc analyst Brett Hoselton said in a note to investors Tuesday
that GM may have to provide financing itself, Dow Jones reports.

Delphi could consider trying to get a smaller exit-financing
package, but falling U.S. auto sales and lowered forecasts for GM
sales in 2008 "probably mean Delphi needs more money, not less,"
WSJ quotes a person familiar with Delphi's talks with their
lenders.  "Any logical person would look at the situation in the
U.S. economy and say Delphi needs more," that source told WSJ.

As reported in the Troubled Company Reporter on Feb. 4, 2008,
Delphi and its debtor-affiliates expect to consummate their
First Amended Joint Plan of Reorganization on or before March 31,
2008, Delphi Corp. Vice President and Chief Restructuring Officer
John D. Sheehan said in a regulatory filing with the U.S.
Securities and Exchange Commission.

As reported in the Troubled Company Reporter on Jan. 9, 2008, the
Debtors reduced their Exit Financing from the Court-approved $6.8
billion to $6.1 billion.  The reduced facilities include:

   (a) $1.6 billion in an asset-backed revolving credit
       facility;

   (b) $3.7 billion in a first-lien term loan facility; and

   (c) $825 million in a second lien term loan facility.

The TCR reported Jan. 30, 2008, that the Honorable Robert Drain of
the U.S. Bankruptcy Court for the Southern District of New York
permits members of the Official Committee of Unsecured Creditors
and the Official Committee of Equity Security Holders appointed in
Delphi's bankruptcy cases to participate in any syndicate of
lenders assembled to provide exit financing facilities for the
Debtors' emergence from Chapter 11.

                        About Delphi Corp.

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

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

The Court approved Delphi's First Amended Joint Disclosure
Statement and related solicitation procedures for the solicitation
of votes on the First Amended Plan on Dec. 20, 2007.  The Court
confirmed the Debtors' First Amended Plan on Jan. 25, 2008.

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

                          *     *     *

As reported in the Troubled Company Reporter on Jan. 16, 2008,
Moody's Investors Service assigned ratings to Delphi Corporation
for the company's financing for emergence from Chapter 11
bankruptcy protection: Corporate Family Rating of (P)B2;
$3.7 billion of first lien term loans, (P)Ba3; and $0.825 billion
of 2nd lien term debt, (P)B3.  In addition, a Speculative Grade
Liquidity rating of SGL-2 representing good liquidity was
assigned.  The outlook is stable.

As reported in the Troubled Company Reporter on Jan. 11, 2008,
Standard & Poor's Ratings Services expects to assign its 'B'
corporate credit rating to Troy, Michigan-based automotive
supplier Delphi Corp. upon the company's emergence from Chapter 11
bankruptcy protection, which may occur by the end of the first
quarter of 2008.  S&P expects the outlook to be negative.

In addition, Standard & Poor's expects to assign these
issue-level ratings: a 'B+' issue rating (one notch above the
corporate credit rating), and '2' recovery rating to the company's
proposed $3.7 billion senior secured first-lien term loan; and a
'B-' issue rating (one notch below the corporate creditrating),
and '5' recovery rating to the company's proposed $825 million
senior secured second-lien term loan.

                       About General Motors

Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908.  GM employs
about 266,000 people around the world and manufactures cars and
trucks in 35 countries.  In 2007, nearly 9.37 million GM cars and
trucks were sold globally under the following brands: Buick,
Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel,
Pontiac, Saab, Saturn, Vauxhall and Wuling.  GM's OnStar
subsidiary is the industry leader in vehicle safety, security and
information services.

                          *     *     *

As reported in the Troubled Company Reporter on Nov. 9, 2007,
Moody's Investors Service affirmed its rating for General Motors
Corporation (B3 Corporate Family Rating, Ba3 senior secured, Caa1
senior unsecured and SGL-1 Speculative Grade Liquidity rating) but
changed the outlook to Stable from Positive.  In an environment of
weakening prospects for US auto sales GM has announced that it
will take a non-cash charge of $39 billion for the third quarter
of 2007 related to establishing a valuation allowance against its
deferred tax assets (DTAs) in the US, Canada and Germany.

As reported in the Troubled Company Reporter on Oct. 23, 2007,
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating and other ratings on General Motors Corp. and
removed them from CreditWatch with positive implications, where
they were placed Sept. 26, 2007, following agreement on the new
labor contract.  The outlook is stable.


JAPAN AIRLINES: Reports JPY20.4BB Income for First Nine Months
--------------------------------------------------------------
JAL Group announced consolidated results for the third quarter
(October-December 2007 inclusive) and the first three quarters
(April - December inclusive) of FY2007, the financial year ending
March 31, 2008.

For the first three quarters of FY2007, total operating revenue in
the air transport segment -- JAL Groups core business -- improved
significantly on the same period last year, up by JPY28.7 billion
to JPY1,392.5 billion.

Operating costs for the segment went down by JPY65.5 billion to
JPY1,321.2 billion compared to the previous year.

As a result, the JAL Group posted an operating income in the air
transport segment of JPY71.2 billion in the first three quarters
of FY2007, up JPY94.3 billion on last year.

            JAL Group Consolidated FY07 Results
            for the Period April - December 2007

Operating Revenue

Over the nine month period, supply on international and domestic
passenger routes measured in available seat kilometers (ASK)
decreased respectively by 4.9% and 3.1%, as a result of network
restructuring by shifting to high profit routes, suspending low
profit routes and fleet downsizing, as outlined in the JAL Group
Medium-term Corporate Revival Plan FY2007-2010.

Mainly as a consequence of this, demand measured in revenue
passenger kilometers (RPK) fell on international passenger routes
by 3.7% and on domestic routes by 4.4%.  However, due to an
increase in unit price, operating revenue for the core air
transport business segment which includes cargo, increased by 2.1%
when compared to the same period last year, up by JPY28.7 billion
to a total of JPY1,392.5 billion.

Consolidated operating revenue declined by JPY32.9 billion or 1.9%
from the same period last year to JPY1,701.1 billion.  One main
factor was a JPY58 billion decrease in non-air transport business
revenue resulting from the exclusion of JALUX from the
consolidated statement, after the trading company changed from a
consolidated subsidiary to an equity method affiliate.

Operating Expenses

As a result of steady implementation of business structure and
cost reforms outlined in the Medium-term Corporate Revival Plan,
such as a review of all routes, fleet downsizing by introducing
more fuel efficient medium and small size aircraft, and personnel
cost reductions, the JAL Groups operating expenses decreased by
7.0% or JPY121.3 billion to JPY1,618.6 billion during the first
three quarters of FY2007, when compared to last year.

Operating, Ordinary & Net Income

For the first three quarters of FY2007, the JAL Group recorded an
operating income of JPY82.5 billion up JPY88.4 billion on last
year, and an ordinary income of 79.2 billion yen up JPY86.9
billion on last year.  The Group posted a net income of JPY20.4
billion up JPY29.8 billion when compared to the same 9 month
period the previous year.

        Business Segment Outline (April - December 2007)

International Passenger

Demand: Tourism demand was weak on Europe routes and Hawaii routes
due to a weakening of the yen.  Reduced seat supply, a part of
JALs route restructuring, led to a decrease in revenue passenger
kilometers and passenger numbers on US mainland and Oceania
routes.  While demand over the nine-month period on China, Korea
and Southeast Asia routes all increased on the previous year.

Demand measured in revenue passenger kilometers was 96.3% from the
same period last year.  The revenue seat load factor rose 0.9
points to 71.9%.  In total 10,061,760 international passengers
were carried by JAL Group Airlines, almost identical to the number
carried in the same period the year before.

Supply: In addition to fleet downsizing, JAL has actively reduced
flight frequency and suspended flights on low profit routes.  On
the other and, the airline has increased scheduled flights on high
profit routes to such high growth markets as China, India and
Vietnam, whilst increasing international charter flights to meet
demand primarily from the baby boomer generation.  Supply measured
in available seat kilometers decreased by 4.9% from the same
period last year.

Unit price: In addition to an increase in business passenger
demand and the shifting of resources to high profit routes, air
fares were revised and the fuel surcharge was increased resulting
in an increase in unit price of 8.3% compared to the same period
last year.

Revenue: Given the above, revenue increased by 4.3% from the same
period last year up JPY23.6 billion to JPY572.9 billion.

Domestic Passenger

Demand: During the nine-month period, JAL implemented a number of
measures that increased customer convenience and value through,
for example, the launch of Japans first ever domestic first class
cabin, the introduction of discount fares and the launch of
seasonal promotional campaigns.  Route restructuring and fleet
downsizing which came into effect during FY2007, and a boost in
demand from a one-off special fare made available in October 2006
to commemorate the final stage of JAL Group integration, meant
that revenue passenger kilometers were 4.4% down on the previous
year.  The number of domestic passengers carried during the period
by JAL Group airlines decreased by 4.6% to 31,915,821.

Supply: Supply measured in available seat kilometer was 3.1% down
on the same period last year, a result of fleet downsizing and a
review of routes, including flight frequency adjustments, to more
effectively meet demand.

Unit price: Due to changes in passenger composition and an
increase in air fares, unit price increased by 5.6% when compared
to the same period last year.

Revenue: Given the above, revenue increased by 1.0% from the same
period last year by JPY5.2 billion to JPY520.1 billion.

International Cargo

Demand: Demand from Japan to North America declined over the
period when compared to the same period last year mainly due to a
reduction in belly space resulting from a decrease in the number
of passenger flights operated.  Demand from Japan to Europe
increased as a result of better utilization of passenger aircraft
belly space.  Also, demand to China and Southeast Asia was strong
and increased on the previous year, due mainly to increased supply
from the introduction of 767 freighters.

Demand from China to Japan increased from last year, but decreased
from Europe, Southeast Asia and the US, due to for example, a
reduction in available belly space the result of route
restructuring and fleet downsizing.  Revenue cargo ton kilometers
(RCTK) were 2.2% down when compared to the same period last year.

Unit price: Increased 0.9% from the same period last year.

Revenue: Revenue decreased by 1.3% from the same period last year
by JPY1.9 billion to JPY143.6 billion.

Fuel costs

The price of Singapore kerosene from April to December 2007
averaged US$88.1 per barrel, an increase on last year's average of
US$81.9 per barrel.  From the end of October onwards the average
price of fuel was extremely high, regularly exceeding the
US$100.00 per barrel mark. Despite this, through fleet renewal and
downsizing, route restructuring and a range of fuel consumption
reduction measures, JAL managed to reduce fuel costs over the
period by 13.3 billion yen to JPY307.0 billion when compared to
the same period last year.

Personnel costs

As a result of steadily implementing the various measures of the
Medium-term Corporate Revival Plan, in the air transport segment
personnel costs decreased over the 9-month period by JPY14.9
billion from the same period last year.  To achieve JAL Groups
target of reducing total personnel costs annually by JPY50 billion
compared to FY2006, in FY2007 in Japan the company has already
made large reductions to the summer and winter bonuses of staff,
has offered special early retirement programs to cabin attendant
and managerial level ground staff, and plans to revise retirement
benefit related systems and reduce retirement benefit costs.
Worldwide the Group has been increasing productivity by, for
example, expanded introduction of Toyota Production System
methods.

                      About Japan Airlines

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.


JAPAN AIRLINES: Chairman to Leave Post on March 31
--------------------------------------------------
Toshiyuki Shinmachi, Japan Airlines' chairman, will quit from his
post effective March 31 to give way to younger leadership, the
Associated Press reports.

Mr. Shinmachi became the airline's president in 2004, and was
appointed chairman in 2006 to lead the company out of financial
and organizational problems, the same report relates.

JAL's chairman said that he has been successful in making the
airline profitable, and now would like to make way for younger
managers.  Mr. Shinmachi implemented a restructuring plan that
included shifting to fuel-efficient aircraft and dropping
unprofitable routes, the result of which is a JPY13.1 billion
third quarter profit for JAL, AP relates.

                      About Japan Airlines

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.


JAPAN AIRLINES: Paying JPY48 Million on Employee Suit
-----------------------------------------------------
Japan Airlines Corp. will pay JPY48 million to 194 flight
attendants for illegally collecting and managing the employees'
personal information, Takahiro Fukada at The Japan Times reports.

The flight attendants, former and current, have brought the suit
to the Tokyo District Court.  JAL agreed to pay the amount but
asserted that the payment does not constitute an admission of
guilt, the same report adds.

The airline said in a statement that it agreed to compensate the
plaintiffs to avoid damaging its customers' trust.

Aside from the airline, the flight attendants have also sued Japan
Airlines Workers' Union and some of its executives.  Only the
airline has agreed to the settlement, leaving the other two
defendants to proceed with the case, the Times continues.

In its suit, the flight attendants accused JAL, the union, and
some executives, of illegally collecting 150 private information
on 9,000 crew members, which includes personal beliefs, family
backgrounds, and medical histories.

                      About Japan Airlines

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.


TECUMSEH PRODUCTS: Names Edwin Buker as Board Chairman
------------------------------------------------------
Tecumseh Products Company announced that Edwin L. "Ed" Buker has
assumed the role of Chairman of the company's Board of Directors,
effective Feb. 5, 2008.  David Risley, who served as Chairman of
the Board prior to Mr. Buker's appointment, will assume the role
of Lead Director.

The appointment of Mr. Buker as Chairman is in accordance with an
agreement reached in April 2007 between Tecumseh, certain members
of the Tecumseh Board of Directors, and a group including members
of the Herrick family.

In response to his appointment, Mr. Buker commented: "I look
forward to continuing to work with the other members of Tecumseh's
Board of Directors in our ongoing efforts to further the company's
objectives, including renewing our focus on the compressor
business, restoring Tecumseh to acceptable levels of
profitability, and providing the greatest value to our customers
and all of our shareholders.  I greatly respect Dave Risley's
service to the Board in his capacity as Chairman during a
challenging period in Tecumseh's history.  His assumption of the
role of Lead Director will be a continuation of his valued
contributions to our Board."

                 About Tecumseh Products Company

Headquartered in Tecumseh, Michigan, Tecumseh Products Company
(Nasdaq: TECUA, TECUB) -- http://www.tecumseh.com/--
manufactures hermetic compressors for air conditioning and
refrigeration products, gasoline engines and power train
components for lawn and garden applications, submersible pumps,
and small electric motors.  The company has offices in Italy,
United Kingdom, Brazil, France, and India.

In March of 2007, the company's Brazilian engine subsidiary,
TMT Motoco, was granted permission by the Brazilian courts to
pursue a judicial restructuring, similar to a U.S. filing for
Chapter 11 bankruptcy protection.  The TMT Motoco filing in
Brazil constituted an event of default with our domestic
lenders.  On April 9, 2007, the company obtained amendments to
its First and Second Lien Credit Agreements that cured the
cross-default provisions triggered by the filing in Brazil.


USINAS SIDERURGICAS: Plans to Boost Unit's Iron-Ore Production
--------------------------------------------------------------
Usinas Siderurgicas de Minas Gerais SA aka Usiminas plans to
boost iron-ore output at its unit, Mineracao J. Mendes Ltda., to
13 million metric tons by 2013 from 6 million tons now, Chief
Executive Officer Rinaldo Soares told Bloomberg in an interview.

Mineracao J. Mendes Ltda. is an iron-ore producer which Usiminas
bought this year, Bloomberg says.

Mr. Soares also told Bloomberg that the steelmaker is seeking to
produce enough iron-ore to supply its own steelmaking operations
and cut costs amid soaring iron-ore prices.

Meanwhile, Usiminas is seen to be acquiring more iron ore assets
in Brazil, after buying three miners in Minas Gerais, according to
Business News Americas, citing an analyst with brokerage Planner
Corretora.

BNamericas said Usiminas 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.

                         About Usiminas

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 in the Troubled Company Reporter-Latin America
on Feb. 5, 2008, Moody's America Latina assigned a Ba1 local
currency rating and an Aa1.br rating on its Brazilian national
scale to the BRL500 million non-guaranteed subordinated
debentures due 2013 to be issued by Usinas Siderurgicas de
Minas Gerais S.A. (aka Usiminas).  Net proceeds from the
debentures issuance will be used to partially fund the
company's capex program.  The rating outlook is stable.

As reported in the Troubled Company Reporter-Latin America
on Jan. 3, 2007, Standard & Poor's Ratings Services revised
its outlook on Brazil-based steelmaker Usinas Siderurgicas
de Minas Gerais S.A., aka Usiminas, to positive from stable.
Standard & Poor's also it affirmed its 'BB+' local and
foreign currency corporate credit ratings on Usiminas.


XERIUM TECH: Appoints Three Officers to Executive Roles
-------------------------------------------------------
Xerium Technologies Inc. has appointed David Pretty as
President - Xerium North America, Peter Williamson as President -
Xerium Europe and Joan "John" Badrinas Ardevol as Chief Technology
Officer.

Mr. Pretty has served as President - Weavexx, the company's North
American clothing operation, since December 2005, and prior to
that held various sales, marketing and technical service positions
with the company and its predecessors since 1987.  As President -
Xerium North America, he assumes responsibility for the Company's
North American roll covers operations, in addition to the clothing
operations in that region.

Mr. Williamson has served as the company's Managing Director -
Stowe Woodward Europe, with responsibility for Xerium's European
roll covers business since joining the company in March 2006.  Mr.
Williamson had previously served as President of the product area
engine group at Trelleborg AB and earlier as President - Metzler
Automotive Hose Systems.  As President - Xerium Europe, he will be
responsible for the Company's European clothing operations, in
addition to the roll covers operations in Europe.

John Badrinas, who had been the company's President - Clothing
Europe since joining Xerium in July 2006, will now be responsible
for the company's research and development activities in the new
role of Chief Technology Officer.  Prior to joining Xerium, Mr.
Badrinas held various technology leadership positions at
Trelleborg AB and Pendelastica SA.

Doug Milner, who had been President - Stowe Woodward Rolls
Worldwide since joining the company in February 2004, has left
Xerium to pursue other opportunities.  The company expresses its
thanks to Doug Milner for his service to Xerium over the last four
years.

Headquartered in Wesborough, Massachusetts, Xerium Technologies,
Inc. -- http://xerium.com/-- manufactures and supplies two
types of products used primarily in the production of paper:
clothing and roll covers.  The company operates under a variety
of brand names and owns a broad portfolio of patented and
proprietary technologies to provide customers with tailored
solutions and products, designed to optimize performance and
reduce operational costs.  With 35 manufacturing facilities in
15 countries, including Austria, Brazil and Japan, Xerium
Technologies has approximately 3,900 employees.

                         *     *     *

To date, Xerium Technologies Inc. carries Moody's Investors
Service ratings on corporate family rating at B2; bank loan debt
and probability of default at B2 rating.  The outlook is stable.



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

ABLAMID INVESTMENT: Proofs of Claim Filing Deadline is Feb. 25
--------------------------------------------------------------
Ablamid Investment Holding Ltd.'s creditors are given until
Feb. 25, 2008, to prove their claims to MBT Trustees 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.

Ablamid Investment's shareholder decided on Nov. 23, 2007, to
place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidator can be reached at:

           MBT Trustees Ltd.
           P.O. Box 30622, Grand Cayman KY1-1203
           Cayman Islands
           Telephone: 945-8859
           Fax: 949-9793/4


ABLAMID INVESTMENT: Final Shareholders Meeting is on February 25
----------------------------------------------------------------
Ablamid Investment Holding Ltd. will hold its final shareholders
meeting on Feb. 25, 2008, at 12:00 p.m. at MBT Trustees Ltd., 3rd
Floor, Piccadilly Center, Elgin Avenue, 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.

Ablamid Investment's shareholders decided on Nov. 23, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

            MBT Trustees Ltd.
            P.O. Box 30622, Grand Cayman KY1-1203
            Cayman Islands
            Telephone: 945-8859
            Fax: 949-9793/4


BANK OF INDIA: Raises INR1,360 Crore from Share Issue
-----------------------------------------------------
Bank of India has raised INR1,359.81 crore from the placement of
its equity shares that closed on Feb. 6, the bank disclosed in a
filing with the Bombay Stock Exchange.

According to the BSE filing, the bank has approved the issuance of
3,77,72,600 equity shares at a price of INR360 per share of face
value of INR10 (issued at a premium of INR350 each share).

SBI Capital Markets Ltd, A.K. Capital Services Ltd, Edelweiss
Capital Ltd, HSBC Securities and Capital Markets (India) Pvt Ltd,
JM Financial Consultants Pvt Ltd, Kotak Mahindra Capital Company
Ltd and Motilal Oswal Investment Advisors Pvt Ltd acted as book
running lead managers to the issue.

Headquartered in Mumbai, India, Bank of India --
http://www.bankofindia.com-- 2628 branches in India spread over
all states/ union territories, including 93 specialized
branches.  The bank provides a range of financial products and
services, including numerous credit schemes, deposit schemes,
cash management services, credit/debit cards, deposit vaults and
corporate bonds.  It also extends finance to small and medium
enterprises and small-scale industries. It provides a variety of
loans, such as mortgage loans, educational loans, auto finance
loans, holiday loans, personal loans and home loans.  The bank
offers Internet banking services for both the retail and
corporate clients.

The bank operates in the Cayman Islands, China, the Channel
Islands, France, Hong Kong, Indonesia, Japan, Kenya, Singapore,
the United Kingdom, the United States, and Vietnam.

                         *     *     *

Moody's Investors Service gave a Ba2 rating to the bank's
Foreign LT Bank Deposits.


LA CHAINE: Proofs of Claim Filing Deadline is February 25
---------------------------------------------------------
La Chaine Limited's creditors are given until Feb. 25, 2008, to
prove their claims to Glen Trenouth and Rodney Graham, 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.

La Chaine's shareholder decided on July 31, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidators can be reached at:

           Glen Trenouth
           Rodney Graham
           BDO Tortuga
           2nd Floor, Building 3
           Governors Square, 23 Lime Tree Bay Avenue
           Grand Cayman, Cayman Islands
           Telephone: (345) 943 8800
           Fax: (345) 943 8801


NEW ORIENTAL: Sets Final Shareholders Meeting for February 25
-------------------------------------------------------------
New Oriental Gas Limited will hold its final shareholders meeting
on Feb. 25, 2008, at 10:00 a.m. at Jin Bao Plaza, No. 89 Jin Bao
Road, Dong Cheng Dong District, Beijing 100005, China.

These agendas will be taken during the meeting:

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

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

The liquidator can be reached at:

            Shen Jianwei
            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: Venezuela May Confiscate Firm's Plant
---------------------------------------------------
Venezuela's President Hugo Chavez has threatened to seize the milk
processing plants of Italian firm Parmalat S.p.A as well as
Switzerland company Nestle SA, Agence France-Presse reports.

President Chavez told Namnews that producers run the state or co-
operatives couldn't increase supply as they struggled to get raw
milk.

According to AFP, President Chavez commented in his weekly radio
and television program "Hello Mr. President" that it wouldn't make
any difference if the government set up milk processing plants if
there is no milk to process because Parmalat or Nestle has taken
it all.

AFP relates that Venezuela has been facing shortages of basic
foods like milk, eggs, sugar, beef, chicken and wheat flour for
months.  Milk is among the products that has faced the worst
supply problems.

President Chavez commented to AFP, "If it is proven that Nestle or
Parmalat -- under different economic means of pressure or
blackmail, such as by offering money in advance -- are making off
with the raw milk output and leaving state plant without the milk
they need, then that is called sabotage.  The constitution has to
be enforced, the government has to step in and expropriate the
plants.  We are facing an economic conspiracy and we are forced to
act to defend national security."

Nestle's spokesperson Francois-Xavier Perroud told the Associated
Press that he read news accounts quoting the Venezuelan Chavez.
He said that the firm's Venezuelan unit hasn't received any
official notification or any official statement that anything is
being thought about or considered or being planned.

The government alleged that the shortage was due to food exports
to other nations.  Meanwhile, exporters blame price controls the
government put in place five years ago, AFP notes.

President Chavez also alleged that political opponents are
hoarding supplies to guarantee food shortages.  State and local
elections will be held in November 2008, the AP says.

According to Namnews, President Chavez has been trying to end
major food shortages in Venezuela by increasing the private
sector's supply with state-financed enterprises.  He encouraged
private sector production with measures like increasing prices for
some regulated goods.

Economists worry that President Chavez would scare off investors,
Namnews states.

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

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

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

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

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

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


TRADED POLICIES: Proofs of Claim Filing is Until February 25
------------------------------------------------------------
Traded Policies (Income) Ltd.'s creditors are given until
Feb. 25, 2008, to prove their claims to Andrew Hersant and Chris
Humphries, 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.

Traded Policies's shareholder decided on Dec. 7, 2007, to place
the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidators can be reached at:

           Andrew Hersant and Chris Humphries
           Attn: Stuarts Walker Hersant
           Stuarts Walker Hersant Attorneys-at-Law
           Dr. Roy's Drive, P.O. Box 2510
           Grand Cayman KY1-1104, Cayman Islands
           Telephone: (345) 949 3344
           Fax: (345) 949 2888



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

ARAMARK CORP: Improved Credit Prompts S&P to Affirm B+ Rating
-------------------------------------------------------------
Standard & Poor's Ratings Services has affirmed its 'B+' corporate
credit rating on Aramark Corp.  At the same time, S&P's raised its
rating on the company's senior secured debt to 'BB' from 'BB-'.
The recovery rating was changed to a '1', indicating the
expectation for very high (90%-100%) recovery in the event of a
payment default, from '2'.  The outlook is stable.  The company
had approximately US$5.9 billion of debt outstanding as of
Dec. 28, 2007.

"The rating actions reflect improved recovery prospects on the
credit facilities following Aramark's approximately US$400 million
in voluntary prepayments during fiscal 2007," said S&P's credit
analyst Jean C. Stout.

The ratings on Aramark Corp. continue to reflect its highly
leveraged financial profile and significant cash flow requirements
to fund interest and capital expenditures.  These factors are
somewhat mitigated by the company's good position in the
competitive, fragmented markets for food and support services and
uniform and career apparel.  These positions translate into a
sizable stream of recurring revenues and healthy cash flow
generation.

Headquartered in Philadelphia, Pennsylvania, Aramark Corp. (NYSE:
RMK) -- http://www.aramark.com/-- is a professional services
organization, providing food services, facilities management,
hospitality services, and uniforms and career apparel to health
care institutions, universities and school districts, stadiums and
arenas, businesses, prisons, senior living facilities, parks and
resorts, correctional institutions, conference centers, convention
centers, and public safety professionals around the world.
Aramark has operations in Belgium, Czech Republic, Germany,
Ireland, UK, Mexico, and Chile, among others.


SCIENTIFIC GAMES: Wins Ticketing Deal w/ French Lottery Operator
----------------------------------------------------------------
Scientific Games has been chosen as the primary instant ticket
provider to La Francaise des Jeux, the operator of the French
National Lottery.  The contract, which began January 2008, will
have an initial term of three years and will provide for extension
options of up to three years.  The contract is expected to
generate approximately US$10 million in annual revenue based on a
minimum quantity of tickets.

Tickets printed under this contract will include Scientific Games
Orion(TM) encoding that will enable the keyless validation of La
Francaise des Jeux's instant tickets using digital camera
technology.  Orion(TM) is the latest generation of Scientific
Games' keyless instant ticket validation technology licensed by
the French lottery operator.  Orion(TM) technology is replacing
the SciScan(TM) technology currently deployed at 35,000 FDJ points
of sale.  In the near future, all of La Francaise des Jeux's
retail outlets will be equipped with hardware capable of
validating Orion(TM) enabled instant tickets.

"La Francaise des Jeux has been a great partner for us, and we
look forward to working with them for many years to come," said
Scientific Games Chairperson and Chief Executive Officer, Lorne
Weil.  "FDJ is already among the top worldwide lotteries, but we
continue to see potential for growing the instant ticket sales by
utilizing best practices, new technology and additional services."

"We are pleased to extend our relationship with Scientific Games,"
said La Francaise des Jeux President and CEO, Christophe
Blanchard-Dignac.  "Scientific Games is the instant ticket leader,
and has proven its ability to grow lotteries time and time again.
We strongly believe their expertise coupled with the new Orion(TM)
encoding technology will help to drive efficiency and profits for
the lottery going forward."

In fiscal 2007, Le Francaise des Jeux's instant ticket lottery
generated approximately US$4.5 billion in retail sales.

                     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
===============

BRIGHTPOINT INC: To Deliver Google Services on Mobile Devices
-------------------------------------------------------------
Brightpoint Inc. has entered into a distribution agreement with
Google Inc. to distribute Google(tm) services.  Pursuant to the
agreement, Brightpoint will pre-install a wide range of
smartphones, including those running on Windows Mobile,
Blackberry, Palm, Symbian, and other OS-powered device, with
Google Search and Google Maps(tm) for mobile.  These applications
will be distributed through Brightpoint's 25,000 B2B customers
around the world.

"We're excited to work with Google to bring more services to our
customers.  I believe Google's innovative mobile applications and
services will further accelerate the replacement cycle and create
a 'pull' demand in the global wireless marketplace.  Through our
leadership position in the global wireless distribution and
customized logistic services value chain, we offer a compelling
value proposition to all OS-powered device manufacturers.  I
believe that this new relationship with Google is a testament to
Brightpoint's ability to provide strategic value to the increasing
penetration of converged devices on a global basis," stated Robert
J. Laikin, Brightpoint's Chief Executive Officer and Chairman of
the Board.

                        About Brightpoint

Headquartered in Plainfield, Indiana, Brightpoint, Inc. --
http://www.brightpoint.com/-- distributes wireless devices and
accessories, as well as provision of customized logistic
services to the wireless industry.  The company primarily
operates in Australia, Colombia, Finland, Germany, India, New
Zealand, Norway, the Philippines, the Slovak Republic, Sweden,
United Arab Emirates and the United States.  The company's
customers include mobile operators, mobile virtual network
operators, resellers, retailers and wireless equipment
manufacturers.  Brightpoint was incorporated in 1989 under the
name Wholesale Cellular USA, Inc. and changed its name to
Brightpoint Inc. in 1995.

                         *     *     *

On April 12, 2006, Standard & Poor's placed Brightpoint's long-
term local and foreign issuer credit ratings at BB- with a
stable outlook.



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

SIRVA INC: Seeks Court Okay to Employ KCC as Claims Agent
---------------------------------------------------------
Sirva Inc. and its debtors-affiliates believe that thousands of
creditors, equity security holders and other parties-in-interest
involved in the Chapter 11 cases may impose heavy administrative
and other burdens on the Court and the Office of the Clerk of the
Court.

As a result, the Debtors sought and obtained the Court's authority
to employ Kurtzman Carson Consultants LLC, as their claims,
noticing and balloting agent, pursuant to a services agreement
entered into by the Debtors and KCC, dated January 21, 2008.

According to Eryk J. Spytek, senior vice president, general
counsel & secretary of SIRVA, Inc., KCC has assisted and advised
numerous Chapter 11 debtors in connection with noticing, claims
administration and reconciliation and administration of plan
votes.

As the Debtors' claims, noticing and balloting agent, KCC will:

           (a) prepare and serve required notices on behalf of
               the Debtors, including:

               * a notice of the commencement of the Debtors'
                 Chapter 11 cases and the initial meeting of
                 creditors under Section 341(a) of the
                 Bankruptcy Code;

               * notices of objections to claims;

               * notices of any hearings on a disclosure
                 statement and confirmation of the Debtors' plan
                 or plans of reorganization; and

               * other miscellaneous notices as the Debtors or
                 the Court may deem necessary or appropriate for
                 an orderly administration of the Debtors'
                 Chapter 11 cases.

           (b) prepare for filing with the Clerk of the Court's
               Office a certificate or affidavit of service that
               includes an alphabetical list of persons on whom
               the notice was served along with their addresses
               and the date, as well as manner of service;

           (c) maintain copies of all claims and proofs of
               interest filed in the Debtors' Chapter 11 cases;

           (d) maintain official claims registers in the
               Debtors' Chapter 11 cases by docketing all proofs
               of claim and proofs of interest in a claims
               database;

           (e) implement necessary security measures to ensure
               the completeness and integrity of the claims
               registers;

           (f) transmit to the Clerk's Office a copy of the
               claims registers on a weekly basis unless the
               Clerk's Office requests a more or less frequent
               basis;

           (g) maintain an up-to-date mailing list for all
               entities that have filed claims or proofs of
               interest and make that list available upon
               request to the Clerk's Office or any party in
               interest;

           (h) provide access to the public for examination of
               copies of the proofs of claim or proofs of
               interest filed in the Debtors' Chapter 11 cases
               without charge during regular business hours;

           (i) record all transfers of claims pursuant to Rule
               3001(e) of the Federal Bankruptcy Rules of
               Bankruptcy Procedure, and provide notice of those
               transfers as required by Bankruptcy Rule 3001(e);

           (j) comply with applicable federal, state, municipal,
               and local statutes, ordinances, rules,
               regulations, orders and other requirements;

           (k) provide temporary employees to process claims as
               necessary;

           (l) promptly comply with other conditions and
               requirements as the Clerk's Office or the Court
               may at any time prescribe; and

           (m) provide other claims processing, noticing, and
               related administrative services as may be
               requested from time to time by the Debtors.

        Additionally, as balloting agent, KCC will:

           * print ballots including the printing of creditor
             and shareholder specific ballots;

           * prepare voting reports by plan class, creditor, or
             shareholder and amount for review and approval by
             the Debtors and their counsel;

           * coordinate the mailing of ballots, disclosure
             statement, and plan of reorganization to all voting
             and non-voting parties and provide affidavit of
             service;

           * establish a toll-free "800" number to receive and
             address questions regarding voting on the plan; and

           * receive ballots at KCC's headquarters, inspect
             ballots for conformity to voting procedures, date
             stamping and numbering ballots consecutively, and
             tabulate and certify the results.

        KCC will also assist the Debtors with:

           * maintaining and updating the master mailing lists
             of creditors;

           * gathering data in conjunction with the preparation
             of the Debtors' schedules of assets and liabilities
             and statements of financial affairs;

           * tracking and administration of claims; and

           * performing other administrative tasks pertaining to
             the administration of these Chapter 11 cases as may
             be requested by the Debtors or the Clerk's Office.

Mr. Spytek notes that KCC will be paid for its services, expenses
and supplies at the rates or prices set by KCC and in effect on
the day the services or supplies are provided to the Debtors, in
accordance with KCC's fee structure.

The fees and expenses of KCC incurred are to be treated as an
administrative expense of the Debtors' estates and will be paid by
the Debtors after the 10th day after each KCC invoice has been
received by the Debtors, unless KCC is advised, within that 10-day
period, that the Debtors object to the invoice.

KCC will submit its invoice to the Debtors within 15 days of the
end of each calendar month.  The Debtors agree that the amount
invoiced is due and payable upon receipt of the invoice.  A late
charge will apply to any unpaid amount, as of 30 days from
receipt.  If the invoice amount is disputed, a notice will be sent
to KCC within 10 days of receipt of the invoice by the Debtors.
Late charges will not accrue on any amounts in dispute.

Mr. Spytek points out that the Debtors also agree to pay fees set
by KCC related to professional services rendered and reimburse
expenses incurred in connection with the Debtors' Chapter 11
cases.

The Debtors will indemnify and hold harmless KCC, its officers,
employees and agents, except in circumstances of gross negligence
or willful misconduct.

Prior to their bankruptcy filing, the Debtors paid KCC a retainer
of US$100,000.

Sheryl R. Betance, a director at KCC, assures the Court that the
firm is a "disinterested person," as the term is defined in
Section 101(14) of the Bankruptcy Code.

                         About SIRVA Inc.

Headquartered in Westmont, Illinois, SIRVA Inc. (Pink Sheets :
SIRV.PK) -- http://www.sirva.com/-- is a provider of relocation
solutions to a well-established and diverse customer base.  The
company handles all aspects of relocation, including home purchase
and home sale services, household goods moving, mortgage services
and home closing and settlement services.  SIRVA conducts more
than 300,000 relocations per year, transferring corporate and
government employees along with individual consumers.  SIRVA's
brands include Allied, Allied International, Allied Pickfords,
Allied Special Products, DJK Residential, Global, northAmerican,
northAmerican International, Pickfords, SIRVA Mortgage, SIRVA
Relocation and SIRVA Settlement.  The company has operations in
Costa Rica.

The company and 61 of its affiliates filed separate petitions for
Chapter 11 protection on Feb. 5, 2008 (Bankr. S.D.N.Y. Case No.
08-10433).  Marc Kieselstein, Esq. at Kirkland & Ellis, L.L.P. is
representing the Debtor.  At its bankruptcy filing, the company
reported total assets of US$924,457,299 and total debts of
US$1,232,566,813 for the quarter ended Sept. 30, 2007.


SIRVA INC: Wants to Hire TS&S as Conflicts Counsel
--------------------------------------------------
Sirva Inc. and its debtor-affiliates seek authority from the U.S.
Bankruptcy Court for the Southern District of New York to employ
Togut Segal & Segal LLP as their conflicts counsel in connection
with their Chapter 11 cases, nunc pro tunc to their bankruptcy
filing.

Eryk J. Spytek, senior vice president, general counsel & secretary
of SIRVA, Inc., relates that the Debtors selected Togut Segal
because of the firm's knowledge in the field of debtors'
protections and creditors' rights and business reorganizations
under Chapter 11 of the Bankruptcy Code.

As the Debtors' conflicts counsel, Togut Segal will perform
services on matters that the Debtors may encounter which are not
appropriately handled by Kirkland & Ellis LLP, the Debtors'
proposed counsel, and other professionals because of a potential
conflict of interest or, alternatively, which can be more
efficiently handled by the firm.

Mr. Spytek points out that Togut Segal will not perform the usual
scope of services, other than to maintain a familiarity with the
case and progress of the Debtors' reorganization.  In the event
there is a conflict of interest requiring immediate attention, the
firm is able to assume its duties without impeding the progress of
the bankruptcy case.

In exchange for the contemplated services, the Debtors will pay
Togut Segal based on the firm's applicable hourly rates:

                  Professional              Hourly Rates
                  ------------              ------------
                  Partners                US$725 - US$845
                  Paralegals/Associates   US$125 - US$625
                  Counsel                 US$630 - US$650

Albert Togut, Esq., a partner at Togut Segal, assures the Court
that the firm is a "disinterested person," as the term is defined
in Section 101(14) of the Bankruptcy Code.

                         About SIRVA Inc.

Headquartered in Westmont, Illinois, SIRVA Inc. (Pink Sheets :
SIRV.PK) -- http://www.sirva.com/-- is a provider of relocation
solutions to a well-established and diverse customer base.  The
company handles all aspects of relocation, including home purchase
and home sale services, household goods moving, mortgage services
and home closing and settlement services.  SIRVA conducts more
than 300,000 relocations per year, transferring corporate and
government employees along with individual consumers.  SIRVA's
brands include Allied, Allied International, Allied Pickfords,
Allied Special Products, DJK Residential, Global, northAmerican,
northAmerican International, Pickfords, SIRVA Mortgage, SIRVA
Relocation and SIRVA Settlement.  The company has operations in
Costa Rica.

The company and 61 of its affiliates filed separate petitions for
Chapter 11 protection on Feb. 5, 2008 (Bankr. S.D.N.Y. Case No.
08-10433).  Marc Kieselstein, Esq. at Kirkland & Ellis, L.L.P. is
representing the Debtor.  At its bankruptcy filing, the company
reported total assets of US$924,457,299 and total debts of
US$1,232,566,813 for the quarter ended Sept. 30, 2007.



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

PETROECUADOR: Amazon Drilling Ban Talks May Affect Firm
-------------------------------------------------------
The Ecuadorian attorney general Xavier Garaicoa's recommendation
that the government negotiate with oil companies to stop drilling
for crude in a protected area in the Amazon jungle could affect
state-run oil firm Petroecuador's operations, Reuters reports.

Reuters relates that operations of these firms would also be
affected:

          -- Spain's Repsol,
          -- Brazil's Petroleo Brasileiro SA, and
          -- China's Andes Petroleum Corp.

According to Reuters, the firms have part of their oil blocks
inside the protected area where the Tagaeri and Taromenani tribes
are residing.

Mr. Garaicoa commented to Reuters, "The attorney general's office
considers urgent the exit of oil companies from the protected
areas, via a negotiation."

The government should include in its talks with oil companies a
ban on oil activities in the area, Mr. Garaicoa said in a
statement.

Headquartered in Quito, Ecuador, Petroecuador --
http://www.petroecuador.com.ec-- is an international oil company
owned by the Ecuador government.  It produces crude petroleum and
natural gas.

                         *     *     *

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



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

CHOICE HOTELS: Inks Alliance Agreement With Outrigger Ent.
----------------------------------------------------------
Choice Hotels International Outrigger Enterprises Group announced
a new alliance through which six Outrigger-managed and/or
affiliated properties representing over 3,000 rooms will be
affiliated with Choice's Clarion Collection brand.  The new
properties are located in Honolulu, Waikiki and on the island of
Hawaii and cover a range of rates,locations and styles.  As part
of the alliance, these Outrigger affiliated hotels can be booked
through Choice's central reservations systems, including
choicehotels.com and 800-4-CHOICE.

The six properties are also participating in the company's Choice
Privileges rewards program where members can earn and redeem
points at participating Outrigger affiliated properties in Hawaii.
Members can earn points for staying at participating hotels and
can redeem their points for free nights.

"This alliance is a great way for us to reward our Choice
Privileges members, giving them the option to earn and redeem
points at six premiere Hawaiian hotels," said  Choice Hotels
senior vice president of marketing, Bill Carlson.  "Additionally,
this alliance will enable us to capture new business and encourage
our Choice Privileges members to stay more often at our properties
to reach a goal of reward nights in Hawaii."

"We are very excited to add six of our properties to one of the
lodging industry's most powerful central reservations systems,"
said Outrigger Enterprises Group senior vice president of sales
and marketing, Rob Solomon.  "We look forward to seeing Choice
Privileges members at these six hotels and anticipate that this
alliance will generate significant incremental demand for these
properties."

"The addition of the Outrigger affiliated properties adds great
new locations to the Clarion Collection brand extension," said
Choice Hotels senior vice president of brand operations and
international, Bruce Haase.  "We continue to identify unique,
boutique and historic hotels -- as well as those that are well
established in their markets like the Outrigger affiliated hotels
-- that can benefit from Choice's powerful central distribution
system."

The six properties now affiliated with Choice's Clarion Collection
brand are five hotels on the island of Oahu --
the 1,000+-room Ala Moana Hotel, the 217-room Outrigger Luana
Waikiki, the 401-room The Wyland Waikiki, the 661-room OHANA
Waikiki West, and the 307-room OHANA Honolulu Airport, and on the
island of Hawaii, the 309-room Keauhou Beach Resort.  Plans are
underway to expand the relationship to cover more hotels in the
Outrigger system.

Membership in the Choice Privileges rewards program is free and
offers points good towards free nights, airline miles or gift
certificates while staying at Comfort Inn, Comfort Suites,
Quality, Sleep Inn, Clarion, Cambria Suites, MainStay Suites,
Suburban Extended Stay Hotel, Econo Lodge and Rodeway Inn brand
hotels in the United States, Canada, Mexico, Ireland and the
Caribbean.

                         About Outrigger

Outrigger Enterprises Group is a family-owned company with 60
years of hospitality experience and runs a multi-branded line of
hotels, condominiums and vacation ownership resorts.

Outrigger Enterprises also operates and develops hotel properties
and hospitality-related retail and real estate
opportunities for partners in Hawaii, the Pacific, the mainland
USA and Asia.  The company's most recent initiative -- Waikiki
Beach Walk(R), a US$535 million, 8-acre hotel-retail-entertainment
complex, is the largest development in the history of Waikiki.

                       About Choice Hotels

Choice Hotels International -- http://www.choicehotels.com/--
franchises more than 5,500 hotels, representing more than 450,000
rooms, in the United States and 37 countries and territories.  As
of Sept. 30, 2007, 872 hotels are under development in the United
States, representing 68,853 rooms, and an additional 82 hotels,
representing 7,970 rooms, are under development in more than 20
countries and territories.  The company has hotels in Brazil,
Costa Rica, El Salvador, Guatemala and Honduras.

                        *     *     *

As reported in the Troubled Company Reporter on Aug. 1, 2007,
Choice Hotels International Inc. reported total assets of
US$332 million, total liabilities of US$403.4 million, and total
stockholders' deficit of US$71.4 million as of June 30, 2007.



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

SUGAR COMPANY: Frome Experimenting With Green Cane Harvesting
-------------------------------------------------------------
The Sugar Company of Jamaica Limited's Frome sugar factory in
Westmoreland is conducting experiments with green cane harvesting
in a move to boost harvest and lessen losses due to sugar cane
burning, the Jamaica Information Service reports.

As reported in the Troubled Company Reporter-Latin America on
Dec. 11, 2007, Jamaican agriculture minister Christopher Tufton
said that he started collaborating with stakeholders in the sugar
industry to lessen cane fires at sugar estates, particularly that
of the Sugar Company of Jamaica.  The Frome Estate in Westmoreland
suffered six cane fires in December 2007.  About 15 cane fires
were reported in Frome since October 2007.  Minister Tufton said
that the fires raised serious concerns against the background of
the burning of some 200,000 tons of cane (one-third of Frome's
production) in 901 illicit fires in 2006.  The Sugar Company's
operations vice-president Ashton Smith said that illegal fires at
Frome in 2006 cost the sugar industry J$150 million in revenue.
He said that once the cane is burnt, it must be processed within
24 hours, but Frome could process about 5,500 tons daily while at
times, as much as 20,000 tons of cane are burnt illegally at a
time.

The Jamaica Information Service notes that Frome employed about
100 cane cutters employed by the factory reaping the mature canes
without the use of fire.  This method was praised by several
farmers and Frome's top management personnel as it may boost
profit for the struggling sugar sector.

The Sugar Company's Frome Division operations vice president Aston
Smith told the Jamaica Information Service that the method will
lead to greater yield and less manufacturing cost by the factory.
The experiment was launched two weeks ago and is going well.

"We invited about 15 cutters to demonstrate how the green cane
harvesting is done and it has caught on so well that there are
approximately 100 cutters, who have voluntarily decided to cut
green cane, and it's going on very well.  This method of
harvesting canes has added benefits such as improved quality to
the factory, less damage to the environment, so ultimately this
has to be the way for the sugar industry to go in terms of
harvesting," Mr. Smith commented to the Jamaica Information
Service.

The returns in terms of the yield and sugar quality more than
justify the increase paid to farmers.  Without burning the cane,
the re-growth would be better with the trash to cover the roots,
resulting to better growth and less weeds, the Jamaica Information
Service says, citing Mr. Smith.  Chemical use in terms of reducing
weeds would be lessened.

Mr. Smith believed that the Frome factory would exceed this year's
target of producing 51,249 tons of sugar from 625,000 tons of
cane, the Jamaica Information Service states.

The Sugar Company of Jamaica Limited aka SCJ was formed in
November 1993 by a consortium made up of J. Wray & Nephew Limited,
Manufacturers Investments Limited and Booker Tate Limited.  The
three companies each held 17% equity in SCJ, with the remaining
49% being held by the government of Jamaica.  In 1998, the
government became the sole shareholder of SCJ by acquiring the
interests of the members of the consortium. Its stated goal was to
maximise efficiency, productivity and profitability of the three
sugar factories, within three years.  The principal activities of
the company are the cultivation of cane and the manufacture and
sale of sugar and molasses.

The Sugar Company of Jamaica Limited registered a net loss of
almost US$1.1 billion for the financial year ended Sept. 30, 2005,
80% higher than the US$600 million reported in the previous
financial year.  Sugar Company blamed its financial
deterioration to the reduction in sugar cane production.
According to published reports, the Jamaican government has
taken responsibility for the payment of the firm's debts.  Radio
Jamaica has said that to date, the five sugar factories have
incurred J$3 billion in debts.  The government is now selling the
factories.



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

ASARCO LLC: Grupo Mexico Says No to Sale of Assets
--------------------------------------------------
Grupo Mexico, S.A. de C.V., the ultimate parent of ASARCO LLC and
its debtor-affiliates, objected to the Debtors' request to sell
their assets, Reuters reported.

As reported in the Troubled Company Reporter on Feb. 6, 2008, the
Debtors asked the Honorable Richard S. Schmidt of the U.S.
Bankruptcy Court for the Southern District of Texas to approve
uniform bidding procedures to govern the plan sponsor selection
process.  The Debtors related that they have reached an agreement
in principle with creditor constituents regarding the structure of
a plan of reorganization, which proposes to:

   (1) sell substantially all of the company's assets, and

   (2) resolve the company's contingent environmental and
       asbestos liabilities.

In March 2007, ASARCO presented to the Court a reorganization
plan exit process timeline to identify a plan sponsor and develop
a plan structure that maximizes the value of the assets of the
company's bankruptcy estate.  Since then, ASARCO and Lehman
Brothers, Inc., its financial advisors, have engaged in marketing
and due diligence program.

ASARCO and its creditor constituents are ready to move forward
with the plan sponsor selection process and implement procedures
that will achieve that end, the Debtors said.

                          About ASARCO

Based in Tucson, Arizona, ASARCO LLC -- http://www.asarco.com/
-- is an integrated copper mining, smelting and refining company.
Grupo Mexico S.A. de C.V. is ASARCO's ultimate parent.  The
Company filed for chapter 11 protection on Aug. 9, 2005 (Bankr.
S.D. Tex. Case No. 05-21207).  James R. Prince, Esq., Jack L.
Kinzie, Esq., and Eric A. Soderlund, Esq., at Baker Botts L.L.P.,
and Nathaniel Peter Holzer, Esq., Shelby A. Jordan, Esq., and
Harlin C. Womble, Esq., at Jordan, Hyden, Womble & Culbreth, P.C.,
represent the Debtor in its restructuring efforts.  Lehman
Brothers Inc. provides the ASARCO with financial advisory services
And investment banking services.  Paul M. Singer, Esq., James C.
McCarroll, Esq., and Derek J. Baker, Esq., at Reed Smith LLP give
legal advice to the Official Committee of Unsecured Creditors and
David J. Beckman at FTI Consulting, Inc., gives financial advisory
services to the Committee.  When the Debtor filed for protection
from its creditors, it listed $600 million in total assets and
US$1 billion in total debts.

The Debtor has five affiliates that filed for chapter 11
protection on April 11, 2005 (Bankr. S.D. Tex. Case Nos. 05-20521
through 05-20525).  They are Lac d'Amiante Du Quebec Ltee, CAPCO
Pipe Company, Inc., Cement Asbestos Products Company, Lake
Asbestos of Quebec, Ltd., and LAQ Canada, Ltd.  Details about
their asbestos-driven chapter 11 filings have appeared in the
Troubled Company Reporter since Apr. 18, 2005.

Encycle/Texas, Inc. (Bankr. S.D. Tex. Case No. 05-21304), Encycle,
Inc., and ASARCO Consulting, Inc. (Bankr. S.D. Tex. Case No. 05-
21346) also filed for chapter 11 protection, and ASARCO has asked
that the three subsidiary cases be jointly administered with its
chapter 11 case.  On Oct. 24, 2005, Encycle/Texas' case was
converted to a Chapter 7 liquidation proceeding.  The Court
appointed Michael Boudloche as Encycle/Texas, Inc.'s Chapter 7
Trustee.  Michael B. Schmidt, Esq., and John Vardeman, Esq., at
Law Offices of Michael B. Schmidt represent the Chapter 7 Trustee.

ASARCO's affiliates, AR Sacaton LLC, Southern Peru Holdings LLC,
and ASARCO Exploration Company Inc., filed for Chapter 11
protection on Dec. 12, 2006 (Bankr. S.D. Tex. Case No. 06-20774 to
06-20776).

The Court gave the Debtors until April 11, 2008 to file a plan of
reorganization.  (ASARCO Bankruptcy News Issue No. 66;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


CHEMTURA CORP: Increases Prices on Some Polymer Additive Products
-----------------------------------------------------------------
Chemtura Corporation will increase prices on a range of its
polymer additives used primarily in the rubber industry, effective
March 1, 2008, or as contracts allow. The increases, ranging
between 3%-15%, are in response to mounting raw material and waste
disposal costs.  The products affected are:

     AMINOX(R) FLAKE               5%
     AMINOX(R) POWDER             15%
     BIK OT(R)                     5%
     BLE 25                       10%
     BLE 65                       10%
     BLE 70                       10%
     BLE 75                       10%
     BONDING AGENT P-1            12%
     DURAZONE(R) 37 FLAKE          5%
     NAUGARD(R) 445                3%
     NAUGAWHITE(R) LIQUID          5%
     NAUGAWHITE(R) POWDER          5%
     OCTAMINE(R) FLAKE AND DROP    5%
     OCTAMINE(R) POWDER           15%
     OPEX(R) 80                   10%
     POLYLITE(R) SE                5%
     RETARDER ESEN(R)              5%
     ROYALAC(R) 150 LIQUID         8%
     SUNPROOF(R) WAXES             3%

Headquartered in Middlebury, Connecticut, Chemtura Corp.
(NYSE:CEM) -- http://www.chemtura.com/-- is a manufacturer and
marketer of specialty chemicals, crop protection, and pool, spa
and home care products.  The company has approximately 6,400
employees around the world and sells its products in more than
100 countries.  The company has facilities in Singapore,
Australia, China, Hong Kong, India, Japan, South Korea, Taiwan,
Thailand, Brazil, Belgium, France, Germany, Mexico, and The
United Kingdom.

                         *      *      *

As reported in the Troubled Company Reporter-Latin America on
Dec. 21, 2007, Moody's Investors Service placed Chemtura
Corporation's corporate family rating, CFR of Ba2 under review
for possible downgrade after reports that its "board of
directors has authorized management to consider a wide range of
strategic alternatives available to the company to enhance
shareholder value."

Standard & Poor's Ratings Services placed its 'BB+' corporate
credit and senior unsecured debt ratings of Chemtura Corp. on
CreditWatch with developing implications, after reports that
management is considering strategic alternatives, including sale
or merger of the company.


FEDERAL-MOGUL: Insurers, et al., Oppose Plan A Modifications
------------------------------------------------------------
Objecting parties ask the U.S. Bankruptcy Court for the District
of Delaware to deny confirmation and approval of a Plan A
Settlement, which is attached as an addendum to Federal-Mogul
Corp. and its debtor-affiliates' Fourth Amended Joint Plan of
Reorganization.

The objecting parties are:

   (1) Ten insurance companies comprised of:

          * Columbia Casualty Company,
          * Continental Casualty Company,
          * Federal Insurance Company,
          * Fireman's Fund Insurance Company,
          * First State Insurance Company,
          * Hartford Accident and Indemnity Company,
          * Mt. McKinley Insurance Company,
          * National Surety Company ,
          * New England Insurance Company, and
          * The Continental Insurance Company;

   (2) PepsiAmericas Inc.; and

   (3) Automotive companies DaimlerChrysler Corporation, Ford
       Motor Company, and Volkswagen of America, Inc.

As previously reported in the Troubled Company Reporter, the
Bankruptcy Court confirmed the Debtors' Fourth Amended Joint Plan
of Reorganization and accompanying Plan B Settlement on Nov. 8,
2007.  The U.S. District Court for the District of Delaware
affirmed the Bankruptcy Court's Plan Confirmation Order on
Nov. 13, 2007.  On Dec. 27, 2007, the Fourth Amended Plan became
effective.

At the Debtors' behest, the Bankruptcy Court deferred ruling on
the Plan A Settlement, which is attached as an addendum to the
Fourth Amended Plan.  A number of insurance companies opposed
Plan A, asserting that it affects their rights and insurance
policies.

To recall, the Plan A Settlement and the Plan B Settlement
represent two alternate arrangements for the treatment of the
claims and Plan objections of Cooper Industries, LLC, and Pneumo
Abex LLC.  Pursuant to various transactions, the Debtors assumed
liability for certain asbestos-related claims asserted against
Cooper and Pneumo Abex.

In December 2007, the Debtors removed the insurance-related
provisions contained in Plan A to eliminate all arguments that
Plan A is anything other than absolutely "insurance neutral."

The Objecting Insurers and PepsiAmericas argue that the Plan A
Modifications are insufficient to cure the multitude of problems
that render Plan A unconfirmable.  Contrary to the Debtors'
allegations, the Plan A Modifications do not render Plan A
neutral as to the Insurers' rights and insurance policies, the
Insurers contend.  Thus, they have standing to object to Plan A,
the Insurers and PepsiAmericas maintain.

According to Mt. McKinley, the Plan A Modifications are nothing
more than a last ditch attempt by the Plan Proponents to convince
the Bankruptcy Court to approve an arrangement that:

   -- improperly rids non-debtors Cooper and Pneumo Abex of
      their alleged asbestos liabilities;

   -- unlawfully extends the protections of a channeling
      injunction under Section 524(g) of the Bankruptcy Code to
      Cooper and Pneumo Abex where the law does not so provide;

   -- provides Cooper with a distinct and clear "non-neutral"
      litigation advantage over the Objecting Insurers in
      subsequent insurance coverage litigation; and

   -- provides Cooper with control over Pneumo Abex insurance
      policies in direct contravention to the Bankruptcy Court's
      explicitly rulings.

Through the Plan A Modifications, all the Plan Proponents have
managed to do is obscure the means by which they are assigning
the Pneumo Asbestos Insurance Policies to the Asbestos PI Trust,
Sean J. Bellew, Esq., at Cozen O'Connor, in Wilmington, Delaware,
argues, on Mt. McKinley's behalf.

The Insurers point out that Plan A still effectuates an
assignment of the non-Debtor Pneumo Asbestos Insurance Policies
and still grants Cooper the right to pursue, enforce and collect
the proceeds of those policies.  Thus, Plan A's impact on the
Insurers' rights has not changed.  As the insurance policies are
not assets of the Debtors' estates, the Bankruptcy Court lacks
the jurisdiction necessary to approve Plan A, the Insurers
assert.

Plan A also still permits Cooper to "double-dip" and receive
multiple or excess recoveries from the Asbestos PI Trust by
expressly preventing the Trust from reducing the amount it pays
to Cooper to reflect Cooper's actual settlement costs, according
to Mt. McKinley.

Mr. Bellew notes that Plan A provides for greater payment to
asbestos claimants than that provided under Plan B or in the tort
system.  Thus, Plan A will cost the Insurers more money.  Plan A
also provides for payment to asbestos claimants who will not
receive payment under Plan B or in the tort system, thus,
increasing the Insurers' exposure.  Moreover, Plan A permits the
Asbestos PI Trust and Cooper to apply the proceeds of the Pneumo
Policies to pay liabilities for which the policies do not provide
coverage.

The Debtors have already been reorganized under Chapter 11 of the
Bankruptcy Code, the Insurers point out.  They argue that the
Debtors may not revert back and undo their already completed
reorganization.  "The Plan Confirmation Order has become final.
Approval of Plan A now is contrary to the concept of finality in
bankruptcy and is in direct conflict with the express and
unambiguous language of Section 1127(b) of the Bankruptcy Code
which prohibits modification of a confirmed plan after
substantial consummation.  It is time to end these games and
close the book on these proceedings," Mr. Bellew asserts.

At any rate, Plan A is not necessary for the Debtors'
reorganization, the Insurers continue.  The confirmed Fourth
Amended Plan, they point out, has already conclusively resolved
the Debtors' alleged liabilities to Cooper, Pneumo Abex and
asbestos personal injury claimants in respect of Pneumo Abex
Claims.

Plan A's Section 524(g) Injunction enjoins the pursuit of
asbestos personal injury actions against Cooper and Pneumo Abex.
The Insurers contend that the claims being channeled under the
Injunction do not arise from the Debtors' operations or
liabilities.  In addition, the Debtors' reorganization does not
rely in any way on the Injunction.  Court approval of Plan A is
therefore barred by the express and unambiguous language of
Section 524(g), the Insurers assert.

None of the Pneumo Protected Parties have a current ownership
interest in the Debtors, any of their past or present affiliates
or their predecessors in interest as is required by Section
524(g)(4)(A)(ii)(I), Mr. Bellew points out.  There is also no
evidence that any of the Pneumo Protected Parties have liability
for Pneumo Asbestos Claims that arises by reason of their
"involvement in the management" of the Debtors or a predecessor
in interest of the Debtors as required by Section
524(g)(4)(A)(ii)(II).  Furthermore, there is no evidence that the
Pneumo Protected Parties had any involvement in a transaction
changing the corporate structure of the Debtors or that the Pneumo
Protected Parties have liability for Pneumo Asbestos Claims that
arise out of such involvement.  Thus, the Pneumo Protected Parties
fail to satisfy the requirements of Section 524(g)(4)(A)(ii)(IV),
Mr. Bellew relates.

A Section 524(g) injunction may be issued only in connection with
an order confirming a plan, Fireman's Fund reminds the Bankruptcy
Court.

DaimlerChrysler, Ford, and Volkswagen agree that the actions to
be enjoined under the Plan A Injunction are not derivative of
claims for which the Debtors are principally liable.
DaimlerChrysler and Volkswagen further contend that the Plan A
Injunction adds nothing to the Debtor's discharge.
DaimlerChrysler, Ford, and Volkswagen are co-defendants with
Cooper and Pneumo Abex in numerous lawsuits that allege injury as
a result of Pneumo Abex's and Cooper's asbestos activities.

                       About Federal-Mogul

Federal-Mogul Corporation -- http://www.federal-mogul.com/--
(OTCBB: FDMLQ) is a global supplier, serving the world's
foremost original equipment manufacturers of automotive, light
commercial, heavy-duty, agricultural, marine, rail, off-road and
industrial vehicles, as well as the worldwide aftermarket.
Founded in Detroit in 1899, the company is headquartered in
Southfield, Michigan, and employs 45,000 people in 35 countries.
Aside from the U.S., Federal-Mogul also has operations in other
locations which includes, among others, Mexico, Malaysia,
Australia, China, India, Japan, Korea, and Thailand.

The Company filed for chapter 11 protection on Oct. 1, 2001
(Bankr. Del. Case No. 01-10582).  Lawrence J. Nyhan Esq., James
F. Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown
& Wood, and Laura Davis Jones Esq., at Pachulski, Stang, Ziehl &
Jones, P.C., represent the Debtors in their restructuring
efforts.  When the Debtors filed for protection from their
creditors, they listed US$10.15 billion in assets and US$8.86
billion in liabilities.  Federal-Mogul Corp.'s U.K. affiliate,
Turner & Newall, is based at Dudley Hill, Bradford.  Peter D.
Wolfson, Esq., at Sonnenschein Nath & Rosenthal; and Charlene D.
Davis, Esq., Ashley B. Stitzer, Esq., and Eric M. Sutty, Esq.,
at The Bayard Firm represent the Official Committee of Unsecured
Creditors.

On March 7, 2003, the Debtors filed their Joint Chapter 11 Plan.
They submitted a Disclosure Statement explaining that plan on
April 21, 2003.  They submitted several amendments and on
June 6, 2004, the Bankruptcy Court approved the Third Amended
Disclosure Statement for their Third Amended Plan.  On
July 28, 2004, the District Court approved the Disclosure
Statement.  The estimation hearing began on June 14, 2005.  The
Debtors submitted a Fourth Amended Plan and Disclosure Statement
on Nov. 21, 2006, and the Bankruptcy Court approved that
Disclosure Statement on Feb. 6, 2007.  The Fourth Amended Plan
was confirmed by the Bankruptcy Court on Nov. 8, 2007, and
affirmed by the District Court on Nov. 14.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Jan. 10, 2008, Moody's Investors Service confirmed the ratings
of the reorganized Federal-Mogul Corporation -- Corporate Family
Rating, Ba3; Probability of Default Rating, Ba3; and senior
secured bank credit facilities, Ba2.  The outlook is stable.
The financing for the company's emergence from Chapter 11
bankruptcy protection has been funded in line with the structure
originally rated by Moody's in a press release dated Nov. 28,
2007.

As reported on Jan. 7, 2008, Standard & Poor's Ratings Services
assigned its 'BB-' corporate credit rating to Southfield,
Michigan-based Federal-Mogul Corp. following the company's
emergence from Chapter 11 on Dec. 27, 2007.  S&P said the
outlook is stable.


FEDERAL-MOGUL: Mesothelioma Claimants Back Plan A Modifications
---------------------------------------------------------------
Certain Mesothelioma Claimants ask the U.S. Bankruptcy Court for
the District of Delaware to approve the Plan A Settlement, which
is attached as an addendum to Federal-Mogul Corp. and its debtor-
affiliates' Fourth Amended Joint Plan of Reorganization.

The Mesothelioma Claimants hold claims for exposure to asbestos-
containing products produced by one or more of the Debtors and,
in some instances, also hold unresolved claims against Pneumo
Abex.  The Mesothelioma Claimants' claims will be paid pursuant
to the Federal Mogul U.S. Asbestos Personal Injury Trust.

As previously reported in the Troubled Company Reporter, the
Bankruptcy Court confirmed the Debtors' Fourth Amended Joint Plan
of Reorganization and accompanying Plan B Settlement on Nov. 8,
2007.  The U.S. District Court for the District of Delaware
affirmed the Bankruptcy Court's Plan Confirmation Order on Nov.
13, 2007.  On Dec. 27, 2007, the Fourth Amended Plan became
effective.

At the Debtors' behest, the Bankruptcy Court deferred ruling on
the Plan A Settlement, which is attached as an addendum to the
Fourth Amended Plan.  A number of insurance companies opposed
Plan A, asserting that it affects their rights and insurance
policies.

To recall, the Plan A Settlement and the Plan B Settlement
represent two alternate arrangements for the treatment of the
claims and Plan objections of Cooper Industries, LLC, and Pneumo
Abex LLC.  Pursuant to various transactions, the Debtors assumed
liability for certain asbestos-related claims asserted against
Cooper and Pneumo Abex.

In December 2007, the Debtors removed the insurance-related
provisions contained in Plan A to eliminate all arguments that
Plan A is anything other than absolutely "insurance neutral."

The Mesothelioma Claimants agree with the Debtors that the
Objecting Insurers no longer have standing to object to Plan A
since all of the insurance-related provisions have been removed.

Plan B requires the Asbestos PI Trust to pay US$140 million to
Cooper Industries and Pneumo Abex in satisfaction of those
creditors' claims against the Debtors.  The money necessary to
pay that sum is taken from the funds otherwise allocated to the
T&N Subfund of the Asbestos PI Trust, Patricia P. McGonigle,
Esq., at Seitz, Van Ogtrop & Green, P.A., in Wilmington,
Delaware, notes.  As a result, approximately 18% or
US$140 million of the US$775 million worth of assets allocated in
the aggregate to the T&N Subfund will not be available to pay
asbestos claims and will instead be paid to Cooper Industries and
Pneumo Abex.  Consequently, the Mesothelioma Claimants' Claims
will be paid as much as one-fifth less if the Bankruptcy Court
will not approve Plan A and the Asbestos PI Trust is required to
pay the Plan B Settlement Amount.

"For the Mesothelioma Claimants, each of whom is a person dying
of an incurable form of cancer or the personal representative of
someone already dead from same, losing another 15 to 20% off of
their already reduced and delayed claims against the Debtors
represents an unfair and unnecessary impairment of their claims
. . . Given that the only parties objecting to the Plan A
Settlement are insurers not involved or affected by the
transaction, [Court approval of Plan A] is ridiculously unfair
and unnecessary," Ms. McGonigle asserts.

                       About Federal-Mogul

Federal-Mogul Corporation -- http://www.federal-mogul.com/--
(OTCBB: FDMLQ) is a global supplier, serving the world's
foremost original equipment manufacturers of automotive, light
commercial, heavy-duty, agricultural, marine, rail, off-road and
industrial vehicles, as well as the worldwide aftermarket.
Founded in Detroit in 1899, the company is headquartered in
Southfield, Michigan, and employs 45,000 people in 35 countries.
Aside from the U.S., Federal-Mogul also has operations in other
locations which includes, among others, Mexico, Malaysia,
Australia, China, India, Japan, Korea, and Thailand.

The Company filed for chapter 11 protection on Oct. 1, 2001
(Bankr. Del. Case No. 01-10582).  Lawrence J. Nyhan Esq., James
F. Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown
& Wood, and Laura Davis Jones Esq., at Pachulski, Stang, Ziehl &
Jones, P.C., represent the Debtors in their restructuring
efforts.  When the Debtors filed for protection from their
creditors, they listed US$10.15 billion in assets and US$8.86
billion in liabilities.  Federal-Mogul Corp.'s U.K. affiliate,
Turner & Newall, is based at Dudley Hill, Bradford.  Peter D.
Wolfson, Esq., at Sonnenschein Nath & Rosenthal; and Charlene D.
Davis, Esq., Ashley B. Stitzer, Esq., and Eric M. Sutty, Esq.,
at The Bayard Firm represent the Official Committee of Unsecured
Creditors.

On March 7, 2003, the Debtors filed their Joint Chapter 11 Plan.
They submitted a Disclosure Statement explaining that plan on
April 21, 2003.  They submitted several amendments and on
June 6, 2004, the Bankruptcy Court approved the Third Amended
Disclosure Statement for their Third Amended Plan.  On
July 28, 2004, the District Court approved the Disclosure
Statement.  The estimation hearing began on June 14, 2005.  The
Debtors submitted a Fourth Amended Plan and Disclosure Statement
on Nov. 21, 2006, and the Bankruptcy Court approved that
Disclosure Statement on Feb. 6, 2007.  The Fourth Amended Plan
was confirmed by the Bankruptcy Court on Nov. 8, 2007, and
affirmed by the District Court on Nov. 14.

                         *     *     *

As reported in the Troubled Company Reporter-Latin America on
Jan. 10, 2008, Moody's Investors Service confirmed the ratings
of the reorganized Federal-Mogul Corporation -- Corporate Family
Rating, Ba3; Probability of Default Rating, Ba3; and senior
secured bank credit facilities, Ba2.  The outlook is stable.
The financing for the company's emergence from Chapter 11
bankruptcy protection has been funded in line with the structure
originally rated by Moody's in a press release dated Nov. 28,
2007.

As reported on Jan. 7, 2008, Standard & Poor's Ratings Services
assigned its 'BB-' corporate credit rating to Southfield,
Michigan-based Federal-Mogul Corp. following the company's
emergence from Chapter 11 on Dec. 27, 2007.  S&P said the
outlook is stable.


INTERSTATE HOTELS: Acquires 22 Exel Inn Properties
--------------------------------------------------
Interstate Hotels & Resorts has formed a joint venture with
Pittsburgh-based FFC Capital Corporation.  The joint venture
acquired 22 Exel Inn properties, which were converted to various
Wyndham Worldwide brands upon closing.  Interstate invested in a
10 percent equity interest in the 22 hotels, which includes its
share of capital improvements to re-brand, re-image, and
reposition the hotels.  Interstate also has assumed management of
theproperties.

The 22 hotels, aggregating 2,397 rooms, are located throughout the
Midwest, in Illinois, Iowa, Michigan, Minnesota, Wisconsin and
Texas.  The properties are located along major interstates and
proximate to major commercial and leisure demand generators.

"With the addition of the 22 newly converted Wyndham Worldwide
brand hotels, we now manage a total of 25 properties for FFC
Capital," said Interstate Hotels chief executive officer, Thomas
F. Hewitt.  "We see this portfolio as a significant opportunity to
add value through re-branding and repositioning."

"Interstate's proven track record in the select-service sector
makes them an ideal choice as manager for these properties," said
FFC Capital Corp. president, Fred Branovan.  "We have aligned our
interests and share in the vision for these properties."

Separately, Interstate signed an agreement with FFC Capital to
manage the 202-room Courtyard by Marriott Marlborough in Boston,
Massachusetts.  The property is located between Worcester and
Boston, with easy access to routes I-495, Route 20 and I-90
(Massachusetts Turnpike) and is surrounded by such popular
attractions as the New England Sports Center, Fenway Park,
Gillette Stadium, and Wrentham Village Premium Outlets.  The hotel
offers breakfast and dinner in Felton's Cafe & Bar, a fitness
center, and 8,000 square feet of flexible meeting space.

                  About FFC Capital Corporation

FFC Capital Corporation -- http://www.ffccapital.net-- is a
privately held company affiliated with Milton Fine, specializing
in investment management across various asset classes, including
marketable securities, bonds, stocks, private equities,
derivatives, hedge funds, venture capital funds and direct
ownership of real estate investments.

                     About Interstate Hotels

Headquartered in Arlington, Virginia, Interstate Hotels & Resorts
Inc. (NYSE: IHR)-- http://www.ihrco.com/-- has ownership
interests in 54 hotels and resorts, including seven wholly owned
assets, to date.  Together with these properties, the company and
its affiliates manages a total of 218 hospitality properties with
appoximately 45,500 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.


KRONOS INC: Inks Human Resource Services Pact With Winn-Dixie
-------------------------------------------------------------
Kronos(R) Incorporated announced that Winn-Dixie Stores Inc. will
expand its use of Kronos' selection and hiring solution to meet
the hiring needs of its six distribution centers throughout the
southeast.

Retailers such as Winn-Dixie are turning to vendors such as Kronos
to successfully outsource the talent acquisition function of their
human resources departments.  The Kronos for Retail solution
enables Winn-Dixie to broaden its applicant pool, automate,
manage, pre-screen, and accurately assess its candidates.

"After implementing Kronos as a hiring tool for our retail
locations, we had access to a larger talent pool which allowed us
to interview and hire the most qualified associates," said Richard
White, director of human resources support and services for Winn-
Dixie.  "After seeing the positive results in our stores, we made
the decision to expand the Kronos solution to our distribution
centers."

Hiring talented staff is a top concern for warehouse managers,
according to the 2007 Looking Ahead report compiled by the
Distribution Group, a publishing company focused on the
distribution center industry.

"Screening for safety-mindedness and dependability is critical at
distribution centers to ensure a higher quality workforce and to
enhance overall productivity," said Steve Earl, director of
marketing, Kronos Talent Management Division.  "Increasingly,
progressive organizations such as Winn-Dixie are optimizing their
workforce by hiring effectively for all environments that support
retail operations, including distribution centers."

                     About Winn-Dixie Stores

Winn-Dixie Stores Inc. -- http://www.winn-dixie.com/-- is one of
the nation's largest food retailers, with 521 stores. Founded in
1925, the company is headquartered in Jacksonville, Florida.

                          About Kronos

Headquartered in Chelmsford, Mass., Kronos Inc. --
http://www.kronos.com/-- provides a suite of solutions that
automate employee-centric processes, as well as tools to
optimize the workforce.  It provides workforce management
software, including time and attendance software and talent
management (recruiting) software.  The company offers its
products primarily in the United States, Canada, Mexico, the
United Kingdom, Australia, and New Zealand.

The company posted about US$617 million of revenues for the
twelve months ended March 31, 2007.

                          *     *     *

In May 2007, Moody's Investors Service assigned Kronos Inc. a
first time B2 corporate family rating and a stable rating
outlook.


MAXCOM TELECOM: Net Income Reaches MXN61-Mln in Full-Year 2007
--------------------------------------------------------------
Maxcom Telecomunicaciones, S.A.B. de C.V. announced its unaudited
financial and operating results for the full year
ended Dec. 31, 2007.

                Full Year Financial Highlights:

   -- Full year 2007 revenues of MXN2,346 million which
      increased by MXN604 million

   -- Full year 2007 EBITDA of MXN670 million which increased by
      MXN213

   -- EBITDA margin increased by 300 basis points in the year to
      reach 29%

   -- The company recorded Net Income of MXN61 million

                    Operating Highlights:

   -- Total company Revenue Generating Units' increased to
      360,942 or by 27% in 2007

   -- Total number of Wholesale RGU's increased by 128%

   -- Total number of Public Telephony RGU's increased by 48%

   -- Total number of Commercial RGU's increased by 27%

   -- Total number of Residential RGU's increased by 20%

               Fouth Quarter Financial Highlights:

   -- Fourth quarter revenues of MXN619 million which increased
      by MXN124 million

   -- EBITDA of MXN183 million in the quarter which increased by
      MXN49 million

   -- EBITDA margin increased by 300 basis points to reach 30%
      in the quarter

   -- The company recorded Net Income for the quarter of MXN86
      million

                  Revenue Genearating Units (RGU)

Residential

Residential revenues represented 38% of total revenues during the
year, compared with 39% in the previous year of 2006. Revenues in
the residential business reached MXN898 million, an increase of
31% in comparison to MXN686 million in 2006.  The increase was
mainly driven by the introduction of mobile services, residential
Paid TV RGU's, followed by data, and voice in comparison to 2006.
For the fourth quarter period ended Dec. 31, 2007 revenues from
residential service totaled MXN237 million, or 38% of total
revenues, from MXN181 million recorded in the same period in 2006.

Commercial

Commercial revenues represented 28% of total revenues during 2007.
Revenues in the commercial business totaled MXN649 million, an
increase of 31% in comparison to MXN496 million in the year 2006.
This increase in revenues was mainly explained by higher number of
RGU's from other services, mobile services, voice lines and data
services in comparison to 2006.  For the fourth quarter ended
Dec. 31, 2007, revenues from commercial service totaled
MXN193 million, or 31% of total revenues, from MXN133 million
recorded in the same period in 2006.

Public Telephony

Public Telephony represented 16% of total revenues during the year
2007 in comparison with 15% in the previous year.  Revenues in
this business totaled MXN386 million, an increase of 53% compared
to MXN253 million in 2006.  The growth in the public telephony
business was primarily driven by the increase in number of public
telephones, which grew 48%.  For the fourth quarter ended Dec. 31,
2007 revenues from public telephony totaled MXN96 million, or 16%
of total revenues, from MXN78 million in the same period the year
before.

Wholesale

In 2007, Wholesale revenues totaled MXN376 million, an increase of
44% or MXN262 million in comparison to the same period of 2006.
This year over year increase in the wholesale business was mainly
driven by the increase in the long distance termination business
lines in service.  For the fourth quarter ended Dec. 31, 2007,
revenues from Wholesale totaled MXN83 million, or 13% of total
revenues, from MXN90 million in the same period the year before.

Other Revenues

Revenue from other services accounted for 2% or MXN37 million of
total revenues in 2007, a decrease from the MXN45 million recorded
in the same period last year.  Other revenues are primarily
comprised of lease of microwave frequencies and CPE sales.

                   Network Operation Costs

Network Operation Costs in 2007 increased 44% to reach
MXN977 million in comparison to MXN677 million in the previous
year.  The MXN300 million increase was mainly driven by higher:
(i) operating costs related to a higher number of public phones in
service, (ii) long distance interconnections fees, (iii) leases of
circuits and ports, (iv) calling party pays interconnection fees,
(v) cost of paid TV operations, and (vi) internet service costs.
These increases were partially offset by lower: (i) other service
cost such as CATV and mobile wireless operations, (ii)
technical expense and (iii) installation expenses and cost of
disconnected lines.  For the fourth quarter period ended Dec. 31,
2007, network operations costs totaled MXN252 million from
MXN204 million or a 24% increase in comparison to the same period
last year.

                            SG&A

SG&A expenses were MXN698 million in 2007, 15% above MXN608
million in the same period of 2006.  The MXN90 million increase
was mainly driven by higher: (i) salaries, wages and benefits as a
result of an increasing headcount; (ii) bad debt reserve; (iii)
marketing and advertising expenses; (iv) general and corporate
expenses and (v) number of leases. These increases were partially
offset by lower: (i) sales commissions; and (ii) external advisory
expenses.  For the fourth quarter period ended Dec. 31, 2007, SG&A
expenses totaled MXN184 million, 17% above MXN157 million reported
in the same period last year.

                           EBITDA

EBITDA for the year 2007 was MXN670 million, 47% higher than
MXN457 million in the previous year.  EBITDA margin was 29% during
the period, three hundred basis points higher than 26% in the same
period of 2006.  For the fourth quarter ended Dec. 31, 2007,
EBITDA amounted to MXN183 million, 37% higher than the
MXN134 million registered in the same period of 2006.  EBITDA
margin for the fourth quarter of 2007 was 30%, three hundred basis
points higher than the 27% margin reported in the fourth quarter
of 2006.

                       Operating Income

Operating income for 2007 was MXN300 million, 91% higher than
MXN157 million in the previous year.  For fourth quarter ended
Dec. 31, 2007, operating income for the company reached
MXN115 million when compared to the result registered in the same
period of 2006 of MXN61 million, or 89% higher.

                          Net Income

The company posted a net income during the year of MXN61 million,
which compares favorably to the net loss of MXN29 million reported
in 2006.  This net gain is mainly explained by a higher level of
income before taxes in 2007 of MXN158 million in comparison to
MXN31 million in the prior year.  For the fourth quarter period
ended Dec. 31, 2007, the company registered a net income of
MXN86 million in comparison to a net income of MXN6 million, in
the same period of 2006.

                      Capital Expenditures

Capital expenditures during the period totaled MXN1,252 million
20% above MXN1,042 million recorded in 2006.  Capital expenditures
were primarily required for telephone network systems and
equipment for Maxcom's network.

                           Indebtedness

At Dec. 31, 2007 the company reported its indebtedness level at
MXN2,197 million.  The company's leverage ratio measured by
Debt/EBITDA, presented a profile reduction, from the level of 4.2
times in 2006 and reaching 3.3 times in 2007.  In addition, Net
Debt/EBITDA presented an even more important profile reduction as
a result of the recent initial public offering which yielded cash
resources for the company's expansion.

                         Relevant Events

On Oct. 19, 2007, the company made its global initial public
offering of 14,141,516 American Depositary Shares in the United
States and 19,515,152 Ordinary Participation Certificates in
Mexico.  Approximately 14% of the American Depositary Shares and
the Ordinary Participation Certificates were sold by existing
Maxcom shareholders.  Each depository share represents seven
partipation certificates, while each certificate represents three
Series "A" common shares.  After giving effect to this offering,
the company has 789,818,829 Series "A" shares outstanding, and
834,734,070 on a fully diluted basis.

                          About Maxcom

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

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 4, 2008, Moody's Investors Service confirmed Maxcom
Telecomunicaciones, S.A. de C.V.'s corporate family rating at B3.
At the same time, Moody's confirmed its B3 rating on the company's
US$200 million in Senior Unsecured notes due in 2014.  Moody's
said the outlook for all ratings is now positive.  Moody's rating
action concludes the review for upgrade initiated in November
2007.


NUANCE COMM: Incurs US$15.4 Million Net Loss in First Quarter
-------------------------------------------------------------
Nuance Communications Inc. posted net loss of US$15.4 million for
the first quarter ended Dec. 31, 2007, compared with a net loss of
US$1.2 million for the same quarter in 2006.

For the three months ended Dec. 31, 2007, Nuance reported revenues
of US$195.0 million, a 46% increase over revenues of
US$133.4 million in the same period of 2006.

"Nuance delivered a strong start to fiscal 2008, carrying forward
the momentum and favorable trends of 2007 into our first quarter
performance," said Paul Ricci, chairman and Chief Executive
Officer of Nuance.  "In particular, we experienced strong demand
for our solutions, across markets, especially within the mobile
industry and in healthcare organizations. The successful
integration and performance of recently acquired businesses
contributed handsomely to our results and reinforced our ability
to extend Nuance's leadership and to achieve our strategic and
operational objectives."

Consistent with the company's strategy and recent trends,
highlights from the quarter include:

   * Enterprise Speech - The company's enterprise speech
     revenues were up sequentially and year-over-year owing to
     expanded customer engagements and contributions from the
     recent acquisitions of BeVocal and Viecore.  In particular,
     the Nuance On-Demand unit contributed robust revenues with
     its hosted, transaction-oriented solutions that were fueled
     by increased traffic during the holiday season.  In
     addition, the team also secured important design wins for
     new offerings within the quarter and customer satisfaction
     remains strong as evidenced by the record bookings from the
     installed base of customers.  Important agreements, across
     the Enterprise division, with new and existing customers
     include AT&T, Deutsche Bank, Deutsche Telecom, Sprint, the
     U.S. Census Bureau and XM Radio.

   * Mobile and Embedded Speech - Nuance revenues for its mobile
     and embedded solutions were a record for the company,
     surpassing US$43 million, owing to strong organic growth
     and contributions from its VoiceSignal and Tegic
     acquisitions.  The company continues to benefit from active
     product cycles and consumer demand for devices and
     applications from manufacturers, including Ford, LG,
     Motorola, Nokia, RIM, Samsung and TomTom.  In the quarter,
     Nuance expanded its mobile presence through a partnership
     with Google and the Open Handset Alliance and through
     engagements with carriers and mobile operators for new,
     integrated services to be announced later this year.  In
     addition, Nuance speech solutions continue to gain
     mainstream visibility through product launches and
     broadcast advertising for applications such as voice
     control in Ford Sync and voice-based mobile search with
     the Palm Centro.

   * Healthcare Dictation and Transcription - Nuance's
     healthcare dictation revenues were robust in the quarter as
     interest and demand for Nuance's dictation and
     transcription solutions continued to grow. In particular,
     the company experienced strong performance with its iChart
     on-demand transcription solution.  Important contracts in
     the quarter with new and existing customers include
     Adventist, New England Medical Center, St. Joseph's Health
     and Spectrum Health.

   * PDF and Document Imaging - Nuance's PDF and imaging
     solutions recorded revenues in line with expectations as
     the company experienced solid performance from its OEM
     partners, including Brother, Canon, HP and Xerox.  In
     addition, the company continued to expand its site license
     program, securing agreements with State Farm, Total France
     and the U.S. Army.

   * SaaS and Subscription-based Revenues - The company
     continued to experience an acceleration in its revenues
     delivered as software-as-a-service and through subscription
     or transaction-based models.  Across its enterprise, mobile
     and healthcare businesses, Nuance saw approximately
     19 percent of its revenue delivered in this form, compared
     to 9 percent in the same period last year.

   * Operational Achievement - Nuance sustained a focus on
     disciplined acquisition integration, cost synergies and
     expense controls, which resulted in improvements and
     leverage in its non-GAAP operating margins.  Cash flow from
     operations was approximately US$41 million in the first
     quarter 2008, up 57 percent over the same period last year.

                       About Nuance Comms.

Based in Burlington, Massachusetts, Nuance Communications Inc.
(NASDAQ: NUAN), fka ScanSoft Inc., -- http://www.nuance.com/
-- provides speech and imaging solutions for businesses and
consumers around the world.  Its technologies, applications and
services that help users interact with information, and create,
share and use documents.

The company has offices in Australia, Belgium, Japan, Korea,
Hong Kong, India, Mexico, and the United Kingdom, among others.

                         *     *     *

In August 2007, Standard & Poor's Ratings Services affirmed its
'B+' corporate credit rating on Burlington, Massachusetts-based
Nuance Communications Inc. and assigned its 'B-' rating to
Nuance's proposed US$150 million senior unsecured convertible
notes due 2027.  Proceeds from the notes will be used to
partially fund the previously announced acquisition of Tegic
Communications Inc.  S&P said the outlook is positive.


OPEN TEXT: Raymond James Reaffirms Outperform Rating on Shares
--------------------------------------------------------------
Raymond James analyst Steven Li has reaffirmed his "outperform"
rating on Open Text Corp.'s shares, Newratings.com reports.

Newratings.com relates that the target price for Open Text's
shares was increased to C$37 from C$34.

According to Newratings.com, Mr. Li said in a research note that
Open Text's revenues for second quarter in the fiscal year 2008
and earnings per share surpassed estimates and the consensus.

Mr. Li told Newratings.com that the revision in the target price
indicates a shift in the base year.

Open Text sees its third quarter revenues to be flat-to-down
sequentially, indicating that the current consensus expectation of
US$169 million is conservative, Newratings.com says, citing
Raymond James.

Earnings per share estimate for fiscal year 2008 was increased to
US$1.85 from US$1.81.

Headquartered in Waterloo, Ontario, Open Text Corp. (NASDAQ: OTEX,
TSX: OTC) -- http://www.opentext.com/-- provides Enterprise
Content Management solutions that bring together people, processes
and information in global organizations.  The company supports
approximately 20 million seats across 13,000 deployments in 114
countries and 12 languages worldwide.  It has a field office in
Mexico.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Nov. 14, 2007, Standard & Poor's Ratings Services has revised its
outlook on Open Text Corp. to stable from negative.  At the same
time, S&P affirmed the ratings, including the 'BB-' long- term
corporate credit rating, on the company.  At Sept. 30, 2007, Open
Text had US$341 million of debt outstanding.


* MEXICO: S&P Says Structured Finance Unscathed by World Crunch
---------------------------------------------------------------
In 2008, Standard & Poor's Ratings Services expects Mexican
structured finance to remain unscathed by the worldwide market
disruption, according to a recently published report.  S&P does
expect issuance to ease up at times because of the global market's
uncertainty and high volatility, but it will remain active because
of issuers' ongoing funding needs.  The performance of some asset-
backed securities portfolios may suffer a bit if global economic
volatility and a possible recession in the U.S. influence the
Mexican economy.  But S&P expects Mexico's economy to remain
stable, with no adverse effects on the performance of outstanding
transactions and the credit risk of structured bonds.

Although its growth might not be as vigorous as seen in previous
years, the Mexican structured finance market continues to
consolidate to meet funding and investment needs, which provides
very flexible risk allocation advantages for issuers, originators,
and investors.

Total structured finance issuance volume rose 15% to US$7.1
billion in 2007 from US$6.2 billion in 2006.  As asset
securitization becomes more familiar to some originators, growth
is steadier.



=======
P E R U
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QUEBECOR WORLD: Moody's Rates US$1-Bln DIP Facilities at Ba2 & Ba3
------------------------------------------------------------------
Moody's Investors Service has assigned a Ba2 rating to the
US$400 million super priority senior secured revolving term loan
facility of Quebecor World Inc. as a Debtor-in-Possession (DIP).
The related US$600 million super priority senior secured term loan
was rated Ba3 (together, DIP facilities).  The revolving term
loan's better asset value coverage relative to the TL accounts for
the ratings' differential.  Overall, the ratings are a function of
the facility's aggregate size relative to estimated coverage in
either a going concern or wind-up scenario, the fact there is only
US$170 million of prior-ranking obligations, expectations that the
company will be cash flow positive over the expected life of the
credit facilities, and expectations that it will continue
operations subsequent to creditor protection.  This is balanced
against execution risks stemming from concerns that creditors may
not support a restructuring proposal sponsored by the same
management and board that put the company in a position requiring
creditor protection.

The DIP facilities were sanctioned by court orders in both Canada
and the United States.  The rating action assumes that the terms
of the Initial Order dated Jan. 21, 2008 (Canada), and the Interim
Order dated Jan. 23 (United States) will be continued by way of
permanent orders such that all pre-petition obligations will
continue to be stayed for a substantial period beyond the existing
expiry of Feb. 20, 2008.  No affiliates outside of North America
were included in the company's filing for creditor protection.

Moody's had previously withdrawn ratings for all of the company's
pre-petition obligations.  The new ratings are assigned on a
point-in-time basis, will not be monitored going forward, and
therefore do not have an associated ratings outlook.

Ratings assigned:

Quebecor World Inc., as Debtor-in-possession:

   -- US$400 million super priority Senior Secured Revolving
      Term Loan, rated Ba2

   -- US$600 million super priority Senior Secured Tern Loan,
      rated Ba3

   -- US$1 billion of debtor-in-possession financing rated

Quebecor World is the second largest commercial printer in the
world.  While the market is quite fragmented and no single company
commands a significant market share, the company's stature
suggests there is a market need for it to continue in some form.
Consequently, while the company has not yet formulated definitive
restructuring plans, there is a good probability of the its
operations continuing subsequent to creditor protection.  This
perspective is reinforced by the background to the company's
filing for creditor protection.  While operating cash flow was
weak, it was expected to be modestly positive in 2008 and 2009.
The company's failure to appropriately manage its debt maturities
and other liquidity needs during a period of elevated capital
spending were key factors that led to the decision to file for
creditor protection.  The ratings assigned to the DIP facilities
assume that, given an appropriate capital structure and financing
arrangements and given the potential of creditor protection being
used to facilitate permanent cost reductions, the company will be
cash flow self-sufficient over the near term. Consequently,
presuming a restructuring plan is accepted by the various
constituents, the DIP facility is expected to be covered, even
with a conservative EBITDA estimate of US$400 million and a tepid
valuation multiple of 4.0.

Recall as well that only the US$600 million term loan portion of
the DIP facility is initially drawn and that Quebecor World spent
significant amounts to re-tool its plants over the past three
years.  With a significantly reduced interest burden, lower
capital expenditures, and minimal income tax leakage, the company
needs to generate only US$250 million of EBITDA to cover estimated
interest expense, income tax, and capital expenditures.  With 2008
and 2009 EBITDA estimated to be well in excess of these cash
requirements, with all other debts being stayed, and with the
court-appointed Monitor acting to ensure that cash flow is not
deployed on non-essential matters, it is not likely that the
revolving DIP facility will feature significant usage.  This
implies that coverage calculations based on the US$1.0 billion
aggregate facility limit may be conservative relative to what
actual refinancing requirements
will be.

At the same time, while the above analysis suggests there should
be enough value to cover the DIP facilities, given the incumbent
board's and management's role in the events leading up to the
company's filing, there is the potential that some constituents
will insist on material governance changes before agreeing to a
restructuring proposal.  This could lead to negotiation delays
and, potentially, value erosion.  This factor complicates the risk
assessment and weighs on the rating.

In addition to the probability that Quebecor World will remain a
going concern and successfully reorganize and emerge from
bankruptcy, the DIP facility ratings also consider the extent of
protection provided to DIP lenders by the liquidation value and
character of the collateral.  While asset liquidation values are
not likely to provide the same coverage as the enterprise's going
concern value, the DIP facility appears to be covered even in this
scenario.

As background, Quebecor World competes in an industry plagued by
over-capacity and low profitability. North American utilization
rates are in the 70% range.  Given the company's poor
profitability in Europe, it is likely that a similar situation
exists there as well.  With fears of a U.S. recession looming, and
with 80% of its operating assets based in North America, industry
conditions could worsen during this important period.  This
suggests that even with a relatively new asset base, a significant
discount to book value would likely be required in order to sell
the relevant assets.  In addition, 20% of the company's assets are
located in Europe and Latin America where laws regulating the
conveyance and realization of security are not nearly as creditor
friendly as is the case in North America.  Even for seemingly
liquid receivables and inventory, realization values may be at a
significant discount to book.  While the aggregate of these
influences may cause creditors to be more willing to support a
restructuring plan, in the event this is not the case, recovery
values may be only nominally in excess of the security
arrangements sanctioned by the courts.  Assuming a 40% recovery on
US$200 million of inventory, 60% recovery on US$925 million of
accounts receivable and a 30% recovery on US$2.1 billion of net
PP&E, there would be only approximately US$1.2 billion of
liquidation proceeds.  After applying the initial US$170 million
of proceeds against prior ranking claims, there would be enough
value to cover the DIP facility (were it fully drawn).

Note however, that there are two classes of lenders under the DIP
credit agreement, and that each has its own collateral pool.
Based on the above estimates, coverage of the revolving term loan
is superior to that of the term loan.  The term loan is rated Ba3
and the revolving term loan is rated one notch higher at Ba2.

The courts identified three super priority claims:

   i) US$170 million of claims relating to the company's pre-
      petition bank credit facility;

  ii) the US$1.0 billion DIP facility; and

iii) up to CUS$32 million for potential director and officer
      related matters.

All pre-petition claims were stayed.  Otherwise, this is the same
company, with the same assets, operations, and management as it
had prior to seeking creditor protection.  Since the company has
not outlined a definitive restructuring plan, it is assumed that
it has the same general operating plan.  Consequently, the only
significant changes to pre-petition financial forecasts are that
interest expenses are reduced by approximately US$150 million per
year.  Based on this assumption, and with capital expenditures
contractually limited by the DIP facility to less than
US$150 million per year, it is expected that Quebecor World will
be cash flow positive over the near term.

Proceeds of the US$600 million DIP term loan were used to
refinance approximately US$418 million of accounts receivable
funding, to fund strategic payments, and to pay certain fees and
expenses.  The US$400 million DIP revolving credit facility is
available to support working capital requirements and for general
corporate purposes.  Until the Final Order is delivered by the
court, only US$150 million of the facility is available; the full
US$400 million limit is available upon a Final Order being
rendered.  In any case, the revolving credit facility is
governed by a borrowing base consisting of i) 85% of eligible
accounts receivables, plus ii) the lesser of 85% of orderly
liquidation value of eligible inventory or 65% of eligible
inventory, net of reserves, and (subject to the security pledged
to the US$170 million pre-petition bank credit facility) benefits
from a first charge on North American accounts receivable and
inventory and a second charge on North American fixed assets.  The
term loan benefits from a first charge on North American fixed
assets and a second charge on North American accounts receivable
and inventory (also subject to the security pledged to the
US$170 million pre-petition bank credit facility).  In addition,
the DIP facilities are guaranteed by substantially all of Quebecor
World's direct and indirect subsidiaries; the guarantees are
supported by share pledges. The facility matures at the earlier of
18 months from the date of the interim order (i.e. July 23, 2009)
or the date of substantial consummation of a Plan of
Reorganization.

Key covenants include the above-noted US$150 million limitation on
annual Capital Expenditures.  As well, the company will be
required to maintain a minimum level of EBITDAR (EBITDA as defined
with adjustments for restructuring expenses, bankruptcy
administration costs as well as certain other non-recurring costs)
as per a set schedule, on a global basis.  Quebecor World will
also be required to maintain a minimum liquidity availability of
at least US$50 million on any business day.  With these conditions
and with oversight provided by the court-appointed Monitor, the
company will not be able to deviate materially from the status quo
while it is protected from creditors.  This should act to preserve
value for all constituents.

                       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.

Quebecor World has approximately 27,500 employees working in
more than 120 printing and related facilities in the United
States, Canada, Argentina, Austria, Belgium, Brazil, Chile,
Colombia, Finland, France, India, Mexico, Peru, Spain, Sweden,
Switzerland and the United Kingdom.

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.



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

CENTENNIAL COMM: Names Stephen Vanderwoude as Non-Exec Chairman
---------------------------------------------------------------
Centennial Communications Corp. disclosed that Thomas E.
McInerney, a general partner of Welsh, Carson, Anderson & Stowe,
has stepped down as the company's non-executive chairman effective
immediately.  Mr. McInerney will continue to serve as a director
of Centennial.  The company further stated that J. Stephen
Vanderwoude, who has been a director of the Company since 1999,
was unanimously appointed by the board of directors to serve as
Centennial's non-executive chairman.

"Tom has been a great partner and true leader during his nine
years as chairman, playing a key role in growing Centennial's
businesses," said Michael J. Small, Centennial's chief executive
officer.  "On behalf of the board and the Centennial family, we
want to thank Tom for his significant contributions and strong
guidance, and look forward to his continued service as a
director."

Mr. Small continued, "Steve has offered tremendous insight and
shown dedication to our vision since joining our board in 1999,
and we believe he is ideally suited to take on this important
role.  He is an outstanding executive who can draw on his
decades of experience in the telecommunications industry to help
guide our strategy and long-term success.  We're confident that
Centennial will benefit from Steve's deep understanding of our
Company and industry, and the many opportunities that lie ahead in
this rapidly changing and evolving landscape."

"It's been an honor for me to work with Centennial's talented
management team during my nine years as chairman of this great
Company," said Mr. McInerney.  "I'm proud of all that we've
accomplished during a period in which Centennial and the
telecommunications industry have witnessed dramatic change.  I'm
pleased to continue my service as a director and am confident that
our strong management team will continue to achieve success in the
months and years to come."

Mr. Vanderwoude has been a member of Centennial's board since
1999.  From 1996 to 2007, he was the chairman and chief executive
officer of Madison River Communications Corp., an integrated
telecommunications provider in the southeastern United States that
was acquired in April 2007 by CenturyTel, Inc.

Headquartered in Wall, New Jersey, Centennial Communications
Corp. (NASDAQ: CYCL) -- http://www.centennialwireless.com/--
provides regional wireless and integrated communications
services in the United States and the Puerto Rico with
approximately 1.1 million wireless subscribers and 387,500
access lines and equivalents.  The US business owns and operates
wireless networks in the Midwest and Southeast covering parts of
six states.  Centennial's Puerto Rico business owns and operates
wireless networks in Puerto Rico and the U.S. Virgin Islands and
provides facilities-based integrated voice, data and Internet
solutions.  Welsh, Carson, Anderson & Stowe and an affiliate of
the Blackstone Group are controlling shareholders of Centennial.

                        *     *     *

In July 2007, Standard & Poor's Ratings Services raised its
ratings on Wall, New Jersey-based Centennial Communications
Corp., including the corporate credit rating, which was raised
to 'B' from 'B-'.

At Nov. 30, 2007, the company's balance sheet showed
US$1.3 billion in total assets, US$2.4 billion in total
liabilities, and US$4.6 million in minority interest
in subsidiaries, resulting in a US$1.0 million total
stockholders' deficit.


CHATTEM INC: Recalls Icy Hot Seat Products After Burn Reports
-------------------------------------------------------------
Chattem Inc. has initiated a voluntary recall to the consumer
level of its Icy Hot Heat Therapy product.

Chattem is recalling these products because it has received some
consumer reports of first, second and third degree burns as well
as skin irritation resulting from consumer use or possible misuse
of these products.

Icy Hot Heat Therapy, launched in December 2006, is an air-
activated, self-heating disposable device for the temporary relief
of muscular and joint pain.  Since its introduction, the company
has received some consumer reports of first, second and
third degree burns and skin irritation resulting from the use or
possible misuse of the product.  Based upon the company's review
of these reports in consultation with a medical expert, Chattem
believes the reported injuries are temporary or medically
reversible.  The number of adverse events reported to date
represents less than 1/10th of one percent of the approximately
1.8 million units of product sold at retail.

In September 2007, Chattem began shipping product that included
more information on the product's label in order to clarify the
directions for use and added expanded warnings and precautionary
statements to further guide the consumer as to proper product
usage and to prevent product misuse.  After recent consultation
with the FDA, in which the FDA suggested that further action was
needed, the company decided to initiate the voluntary recall of
all Icy Hot Heat Therapy products.  The recall is intended to
eliminate the potential risk of the reported claims occurring to
other consumers.

The recall does not affect Chattem's other topical pain care
products, including other Icy Hot products.  The mechanism and
purpose of the company's other Icy Hot products are fundamentally
different from Icy Hot Heat Therapy.  Because of these
differences, the company does not expect this recall to have a
material effect on sales of its other topical pain care products.
After further study, the company may introduce a new Icy Hot Heat
Therapy product, but it is not now known when or
whether such product will be introduced.

Sales of Icy Hot Heat Therapy in fiscal 2007 represented 2.3% of
the company's total revenues of $423 million and less than 1% of
its total EBITDA.  For fiscal 2008, Icy Hot Heat Therapy was
forecasted to represent less than 2% of total revenues and less
than 1% of EBITDA. In the first quarter of fiscal 2008, the
Company expects to record a charge for the Icy Hot Heat Therapy
recall related costs and expenses of approximately US$6 million to
US$9 million, or US$0.20 to US$0.30 per share.  The charge
encompasses the return of products from the company's
distributors, retail customers and end-user consumers, impairment
of the affected in-house inventory and other recall-related costs.

As disclosed in the company's fourth quarter and fiscal year 2007
earnings conference call, Chattem's portfolio of brands is
performing well at retail and has continued its 2007 momentum with
increases in A.C. Nielsen plus mass merchandiser point-of-sale
data of 7% for the four-week period ending Jan. 26,
2008 as compared to the same prior year period, excluding Icy Hot
Heat Therapy and Icy Hot Pro-Therapy.  Specifically, this retail
sales data was highlighted by strong results from Chattem's key
brands, led by ACT(R), up 37%, and Cortizone-10(R), up 19%, driven
by strong media support, Gold Bond(R) continuing its strong
performance, up 25%, and Unisom, up 5%, all compared to the prior
year four-week period.  During this same period, Selsun Blue(R) A.
C. Nielsen plus mass merchandiser point-of-sale data showed a
decrease of 11% in advance of media support for Selsun Blue
Naturals that started airing the last week of January.

Chattem believes that this retail sales momentum and strong year-
to-date factory shipments to customers, combined with the strength
of its broad portfolio of products, will enable it to achieve its
previously forecasted earnings per share for fiscal 2008 of
US$4.00 to US$4.20 and trend toward the upper end of this range,
excluding the impact of the Icy Hot Heat Therapy recall charge,
stock option expense under FAS 123R and any loss on debt
extinguishment.  In striving to achieve these results, we will
maintain strong advertising and promotional support for its brands
and remain focused on the growth and profitability of the brands
in fiscal 2008.

Chattanooga, Tenn.-based Chattem Inc. manufactures and markets
branded consumer products, including over-the-counter healthcare
products and toiletries and skin care products. Its products
include Gold Bond medicated powder, Icy Hot topical analgesic,
Dexatrim appetite suppressant, and Bullfrog sunblock. Chattem
has operations in the U.K., Australia, and Puerto Rico.

                         *     *     *

Chattem Inc.'s 7% Exchange Senior Subordinated Notes due 2014
carry Moody's Investors Service's 'B2' rating and Standard &
Poor's 'B' rating.


NUTRITIONAL SOURCING: Wants Until May 2 to File Chapter 11 Plan
---------------------------------------------------------------
Nutritional Sourcing Corporation and its debtor-affiliates ask the
United States Bankruptcy Court for the District of Delaware to
further extend their exclusive periods to:

   a) file a Chapter 11 plan until May 2, 2008; and

   b) solicit acceptances of a plan until July 7, 2008.

The Debtors tell the Court that they need sufficient time to
negotiate a plan with their creditors because they still have
significant tasks that they have to complete, including, the sale
of more assets and review of potential claims.

James C. Carigan, Esq., at Pepper Hamilton LLP in Wilmington,
Delaware, says the Debtors are currently seeking for Court
approval for the sale of its certain property and unimproved real
estate from a certain stalking horse bidder for US$26.5 million.

The Debtors, Mr. Carigan, confirmed that they are conducting a
sale process with other bidders and anticipate to close on or
before June 1, 2008.

A hearing on Feb. 25, 2008, at 3:00 p.m., at 824 Market Street,
6th floor in Wilmington, Delaware, to consider approval of the
Debtors' request.

Objection to approval, if any, must be filed on or before Feb. 18,
2008 at 4:00 p.m.

                    About Nutritional Sourcing

Based in Pompano, Florida, Nutritional Sourcing Corp., fdba Pueblo
Xtra International, Inc. -- http://www.puebloxtra.com/-- owns and
operates supermarkets and video rental shops in Puerto Rico and
the US Virgin Islands.  The company and two affiliates, Pueblo
International, L.L.C., and F.L.B.N., L.L.C., filed for chapter 11
protection on Aug. 3, 2007 (Bankr. D. Del. Case Nos. 07-11038
through 07-11040).  Kay Scholer LLC represents the Debtors in
their restructuring efforts.  Pepper Hamilton LLP serves as their
Delaware counsel.  Skadden, Arps, Slate, Meagher & Flom LLP
represent the Official Committee of Unsecured Creditors.

The bankruptcy court has extended Nutritional Sourcing Corp.'s
exclusive period to file a chapter 11 plan until March 3, 2008.

The company has disclosed US$130.8 million in assets and debt
totaling US$266.5 million with the Court.


NUTRITIONAL SOURCING: Empresas Bids US$26.5M for De Diego Assets
----------------------------------------------------------------
Nutritional Sourcing Corporation and its debtor-affiliates ask
the United States Bankruptcy Court for the District of Delaware
to approve the proposed bidding procedure for the sale their
Pueblo's De Diego assets, subject to better and higher offers.

Under the terms and conditions of an asset purchase agreement
dated Feb. 7, 2008, Empresas A. Cordero Badillo Inc., the stalking
horse bidder, agreed to purchase the Debtors' asset for
US$26.5 million.  Empresas has deposited US$1,325,000 as required
in the agreement.

The Debtors have agreed to pay Empresas up to US$900,000 in
termination fee, which is comprised of (i) a US$750,000 break-up
fee, and (ii) US$150,000 reimbursement of expenses.

                          Sale Protocol

Interested qualified bidders must submit at least US$27,550,000,
which includes a termination fee and a US$150,000 incremental bid,
by April 23, 2008, the proposed bid deadline.

The proposed sale allows all potential bidders to participate
until April 18, 2008.

If one or more qualified bids are received, a public auction will
be conducted by the Debtors on April 30, 2008, at 10:00 a.m., at
the offices of Kaye Scholer LLP, 425 Park Avenue in New York and,
at the auction, qualified bidders are allowed to increase their
bids by US$100,000.

If the assets are sold to another bidder, the sale procedure will
provide a termination fee consist of (i) US$750,000 break-up fee
and US$150,000 reimbursement of expenses.  The total termination
fee constitutes 3.4% of the purchase price.

A sale hearing has been set on May 1, 2008, to consider approval
of the Debtors' sale request.  Sale-related objections, if any,
are due Feb. 18, 2008, at 4:00 p.m.

                    About Nutritional Sourcing

Based in Pompano, Florida, Nutritional Sourcing Corp., fdba Pueblo
Xtra International, Inc. -- http://www.puebloxtra.com/-- owns and
operates supermarkets and video rental shops in Puerto Rico and
the US Virgin Islands.  The company and two affiliates, Pueblo
International, L.L.C., and F.L.B.N., L.L.C., filed for chapter 11
protection on Aug. 3, 2007 (Bankr. D. Del. Case Nos. 07-11038
through 07-11040).  Kay Scholer LLC represents the Debtors in
their restructuring efforts.  Pepper Hamilton LLP serves as their
Delaware counsel.  Skadden, Arps, Slate, Meagher & Flom LLP
represent the Official Committee of Unsecured Creditors.

The bankruptcy court has extended Nutritional Sourcing Corp.'s
exclusive period to file a chapter 11 plan until March 3, 2008.

The company has disclosed US$130.8 million in assets and debt
totaling US$266.5 million with the Court.


UNO RESTAURANT: Robert M. Vincent to Leave Executive VP Position
----------------------------------------------------------------
Robert M. Vincent, Executive Vice President and Chief Finacial
Officer of Uno Restaurant Holdings Corporation, has resigned
effective Feb. 29, 2008, as he has accepted the CFO position at
Ruth's Chris Steakhouse.  In making the announcement, Uno's
President and Chief Exucutive Officer, Frank W. Guidara, thanked
Bob for his dedicated service to the company.  A search for a
replacement is underway and the company expects to have a
replacement named in the next 60 days.

Uno Restaurant Holdings Corp. is regionally concentrated, with
about 50% of company-owned restaurants in either Massachusetts or
New York.  Other core markets include the suburban shopping
centers and regional mall areas of the Baltimore/Washington D.C.
area and Chicago.  Uno Chicago Grill restaurants are located in 30
states, the Districtof Columbia, Puerto Rico, South Korea and the
United Arab Emirates.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 11, 2008, Standard & Poor's Ratings Services has lowered its
ratings on Boston-based Uno Restaurant Holdings Corp. to 'CCC'
from 'CCC+'.  S&P's outlook remains negative.



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

GERDAU SA: Net Income May Drop 11% to BRL791MM in 4th Qtr. 2007
---------------------------------------------------------------
Gerdau SA's net income would decrease 11% to BRL791 million in the
fourth quarter 2007, compared to the same period in 2006, Business
News Americas reports, citing brokerage Brascan Corretora.

However, Gerdau's fourth quarter 2007 net income would be 5%
greater than the third quarter 2007, Brascan Corretora told
BNamericas.  Its net revenues would increase 7% to BRL8.20 billion
in the fourth quarter 2007, compared to the third quarter 2007.
The fourth quarter 2007 net revenues would be 27% greater than the
last three months of 2006.

Brascan Corretora said in a report that Gerdau SA's sales volume
would increase in the fourth quarter 2007 due to its acquisition
of US firm Chaparral Steel.

Brascan Corretora told Business News Americas that Gerdau's unit
Gerdau Ameristeel closed the US$4.22 billion Chaparral deal in
September 2007.

A slight increase in demand for steel in Brazil in the last three
months of 2007 would also boost sales in the fourth quarter 2007,
BNamerica says, citing Brascan Corretora.  Gerdau's overall
shipments would increased 10% to 4.64 million tons in the fourth
quarter 2007, compared to the third quarter 2007.  The shipments
would also be 24% higher in the fourth quarter 2007, compared to
the same quarter in 2006.

Gerdau hasn't had success in readjusting prices on the Brazilian
market, which will impact cash flow.  Due to cost pressure on raw
materials, prices would increase this year, BNamericas states,
citing Brascan Corretora.

Headquartered in Porto Alegre, Brazil, Gerdau SA
-- http://www.gerdau.com.br/-- produces and distributes crude
steel and related long rolled products, drawn products, and long
specialty products.  In addition to Brazil, Gerdau operates in
Argentina, Canada, Chile, Colombia, Uruguay, India and the
United States.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Nov. 26, 2007, Moody's Investors Service affirmed Gerdau S.A.'s
Ba1 corporate family rating and stable outlook.


* URUGUAY: New Cabinet Members To Take Office Next Month
--------------------------------------------------------
Uruguay's President, Tabare Vazquez, will have a new set of
cabinet members next month after ousting six ministers in a
move to prevent their party activities from disrupting
government work, BBC News reports.

The Associated Press relates that Mr. Vazquez was seeking
a better team for his final two years in office.

According to AP, Mr. Vazquez said no internal political
crises sparked the overhaul, though he declined to give
details.

                          *     *     *

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

CITGO PETROLEUM: Effect of Parent's Asset Freeze Undetermined
-------------------------------------------------------------
Citgo Petroleum Corp. is still trying to determine how a freeze of
parent firm Petroleos de Venezuela SA's assets might affect its US
refining and marketing operations, Reuters reports, citing
sources.

As reported in the Troubled Company Reporter-Latin America on
Feb. 12, 2008, Petroleos de Venezuela is barred from taking or
disposing of up to US$12 billion in petroleum assets worldwide
after courts in Britain and the US ordered freezing of those
assets.  Exxon Mobil sought the ruling amid reports that Petroleos
de Venezuela could be looking to sell assets to counter financial
crisis.

Reuters relates that Citgo Petroleum is Petroleos de Venezuela's
most valuable overseas asset.  It has large plants in Texas,
Louisiana and Illinois.

According to Reuters, operations at Citgo Petroleum's plants
continued as usual.

Sources told Reuters that they didn't expect Petroleos de
Venezuela or Venezuela's President Hugo Chavez to cut off oil
exports to the US, as Citgo Petroleum brings much money into the
parent company.

Headquartered in Houston, Texas, Citgo Petroleum Corp. --
http://www.citgo.com/-- is owned by PDV America, an indirect,
wholly owned subsidiary of Petroleos de Venezuela SA, the state-
owned oil company of Venezuela.

Petroleos de Venezuela is Venezuela's state oil company in
charge of the development of the petroleum, petrochemical, and
coal industry, as well as planning, coordinating, supervising,
and controlling the operational activities of its divisions,
both in Venezuela and abroad.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Dec. 21, 2007, CITGO Petroleum Corporation's Issuer Default
Rating was lowered by Fitch to 'BB-' from 'BB' following the
company's announcement that it has taken out a US$1 billion bridge
loan and used the proceeds to make a US$1 billion loan to parent
Petroleos de Venezuela SA (PDVSA IDR 'BB-', Negative Outlook).


INTERNATIONAL PAPER: Earns US$327 Million in Fourth Quarter
-----------------------------------------------------------
International Paper Co. reported net earnings of US$327 million in
fourth-quarter ended Dec. 31, 2007, compared with net earnings of
US$217 million in the prior quarter and net earnings of
US$2 billion in the fourth quarter of 2006.

The company reported preliminary full-year 2007 net earnings total
of US$1.2 billion compared with net earnings total of
US$1.1 billion in 2006.

Amounts in all periods include special items; most notably, 2006
fourth-quarter net earnings include an after-tax gain of
US$2.7 billion from the sale of U.S. forestlands.

"We increased profits before special items by 52% in 2007, which
is strong evidence that the transformation we began in 2005 is
continuing to pay off," John Faraci, International Paper chairman
and chief executive officer, said.  "We've steadily expanded our
margins through internal cost controls and by focusing on the
right customers and product segments within our key businesses.
Our global investments are adding to revenue and profit growth and
helping to offset some demand decline in North America."

"Solid fourth-quarter results tell the same story," Tim Nicholls,
chief financial officer and senior vice president, added.
"Margins and volumes continue to improve, contributing to strong
business earnings in paper, packaging and xpedx.  Improved price
realizations in the quarter helped offset the impact of continuing
increases in raw material and distribution costs, but we expect
continued input cost pressures in the first quarter of 2008.
Uncertainty within the North American economy will also play a
role in the first quarter, but we will continue to balance our
supply with our customers' demand.  Global demand for paper and
packaging continues to look solid."

The effective tax rate from continuing operations and before
special items for the fourth quarter of 2007 is 31%, compared with
29% in the third quarter and 28% in the fourth quarter of 2006.
The 2007 full-year tax rate is 30% compared with 29% for the 2006
full year.

                     Effects of Special Items

Special items in the fourth quarter of 2007 include a pre-tax
charge of US$9 million  or US$6 million after taxes, for charges
relating to the company's transformation plan and an Ohio tax
adjustment, well as a US$13 million pre-tax gain for adjustments
to estimated gains/losses of production facilities sold.

Additionally, a US$41 million net income tax benefit was recorded
relating to the effective settlement of certain tax audit issues.
The net after-tax effect of these special items is a gain of US$44
million.

Special items in the third quarter of 2007 include restructuring
and other charges totaling US$42 million before taxes, including
US$37 million of pre-tax charges related to the closure of the
company's Terre Haute, Indiana mill.

Additionally, net pre-tax gains of US$8 million were recorded,
principally to reduce estimated transaction costs accrued in
connection with the transformation plan forestland sales in 2006,
and a US$3 million increase to the income tax provision was
recorded related to the settlement of a prior-year tax audit.  The
net after-tax effect of these special items is a loss of US$23
million.

Special items in the fourth quarter of 2006 include a pre-tax gain
of:

   -- US$4.4 billion from sales of U.S. forestlands included in
      the company's transformation plan;

   -- a charge of US$759 million for the impairment of goodwill
      in the company's coated paperboard and Shorewood Packaging
      businesses;

   -- a US$149 million pre-tax charge for losses on sales and
      impairments of businesses, including a US$128 million pre-
      tax impairment charge to reduce the carrying value of the
      fixed assets of the company's Saillat, France, mill to
      estimated fair value;

   -- a US$111 million pre-tax charge for restructuring and
      other corporate charges;

   -- a US$6 million pre-tax credit for interest received from
      the Canadian government on refunds of prior-year softwood
      lumber duties; and

   -- a US$5 million pre-tax credit for reductions of reserves
      no longer required.

Restructuring and other corporate charges include:

   -- a US$34 million charge for severance and other charges
      associated with the company's transformation plan;

   -- a gain of US$115 million for payments received in the
      fourth quarter relating to the company's participation in
      the U.S. Coalition for Fair Lumber Imports;

   -- a charge of US$157 million for losses on early debt
      extinguishment;

   -- a US$40 million charge for increases to legal reserves,
      and a US$5 million credit for other items.

In addition, a US$4 million tax expense was recorded in the
quarter. The net after-tax effect of these special items is a gain
of US$1.8 billion.

At Dec. 31, 2007, the company's balance sheet showed total assets
of US$23.96 billion, total liabilities of US$15.29 billion and
total common shareholders' equity of US$8.67 billion.

                    About International Paper

Headquartered in Stamford, Connecticut, International Paper Co.
(NYSE: IP) -- http://www.internationalpaper.com/-- is an uncoated
paper and packaging company with primary markets and manufacturing
operations in North America, Europe, Russia, Latin America, Asia
and North Africa.  International Paper employs approximately
54,000 people in more than 20 countries, and serves customers
worldwide.  Its South American operations include, among others,
facilities in Argentina, Brazil, Bolivia, and Venezuela.

                          *     *     *

Moody's Investors Service placed International Paper Co.'s senior
subordinate rating at 'Ba1' in December 2005.  The rating still
holds to date with a stable outlook.


LEAR CORP: Forms Global Operating Structure; Names 2 Executives
---------------------------------------------------------------
Lear Corporation is establishing a global operating structure for
its two business groups.  Accordingly, Louis R. Salvatore has been
appointed president, Global Seating Systems, and Raymond E. Scott
has been named president, Global Electrical and Electronic
Systems.

In their new roles, Mr. Salvatore and Mr. Scott will continue to
report to Lear Chairperson, Chief Executive Officer and President,
Bob Rossiter.  The appointments are effective immediately.

"Over the past two years, we have made significant progress in
streamlining our organization, restructuring our operations and
increasing our focus on our seating and electrical and electronic
businesses to improve our long-term competitiveness," said Mr.
Rossiter.  "The next step to further strengthen and grow our
Company is to establish global organizations for these core
businesses.  This new structure will best support the global
strategies of our customers and allow us to take full advantage of
our global scale, leverage our worldwide engineering and product
development resources and access the lowest possible manufacturing
and sourcing available."

Mr. Rossiter continued: "Ray and Lou each have the global
operating experience, proven-track records of accomplishment and
the outstanding leadership qualities I believe are necessary to
execute our strategy and take our company to the next level. I
look forward to working with them as we continue to implement
initiatives to further grow and diversify our sales, continue to
improve our financial results and deliver the best possible value
to our customers and our shareholders."

Prior to his current position, Mr. Scott, was senior vice
president and president of Lear's North American Seating
Systems, a position he has held since August of 2006.  Since
joining Lear in 1988, he has held a series of increasingly
responsible positions at Lear, both in Europe and in the United
States, including president of Lear's North American Customer
Group; president of Lear's European Customer Focused Division;
president of the General Motors and Fiat Customer Focused
Divisions; vice president and general manager of Lear GM-Europe;
and vice president of Operations for Lear-Saab.

Mr. Scott earned a Bachelor of Science degree in economics from
the University of Michigan.  He has also earned a master of
business administration degree from Michigan State University's
Advanced Management Program.

Most recently, Mr. Salvatore was senior vice president and
president of Lear's Asian Operations and Asian Customer
Group, a position he has held since August 2005.  He began his
career with Lear in 1996 as vice president of Global Purchasing
and has held various positions of increasing responsibility
including president of both Lear's DaimlerChrysler and Ford
business units as well as president of Lear's North American
Electrical/Electronic and Interior Divisions.

Before joining Lear, Mr. Salvatore, held a number of
manufacturing, finance, engineering and purchasing roles during
a 14-year career with Ford Motor Company.  Mr. Salvatore received
a Bachelor of Arts degree from Baldwin-Wallace College in Berea,
Ohio and a master of business administration degree from Michigan
State University in East Lansing, Michigan.  He also completed one
year of post graduate work in international business at Michigan
State University.

                     About Lear Corporation

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

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

                         *     *     *

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


* VENEZUELA: Threatens to Confiscate Parmalat & Nestle's Plants
---------------------------------------------------------------
Venezuela's President Hugo Chavez has threatened to seize the milk
processing plants of Italian firm Parmalat S.p.A and Switzerland
company Nestle SA, Agence France-Presse reports.

President Chavez told Namnews that producers run the state or co-
operatives couldn't increase supply as they struggled to get raw
milk.

According to AFP, President Chavez commented in his weekly radio
and television program "Hello Mr. President" that it wouldn't make
any difference if the government set up milk processing plants if
there is no milk to process because Parmalat or Nestle has taken
it all.

AFP relates that Venezuela has been facing shortages of basic
foods like milk, eggs, sugar, beef, chicken and wheat flour for
months.  Milk is among the products that has faced the worst
supply problems.

President Chavez commented to AFP, "If it is proven that Nestle or
Parmalat -- under different economic means of pressure or
blackmail, such as by offering money in advance -- are making off
with the raw milk output and leaving state plant without the milk
they need, then that is called sabotage.  The constitution has to
be enforced, the government has to step in and expropriate the
plants.  We are facing an economic conspiracy and we are forced to
act to defend national security."

Nestle's spokesperson Francois-Xavier Perroud told the Associated
Press that he read news accounts quoting the Venezuelan Chavez.
He said that the firm's Venezuelan unit hasn't received any
official notification or any official statement that anything is
being thought about or considered or being planned.

The government alleged that the shortage was due to food exports
to other nations.  Meanwhile, exporters blame price controls the
government put in place five years ago, AFP notes.

President Chavez also alleged that political opponents are
hoarding supplies to guarantee food shortages.  State and local
elections will be held in November 2008, the AP says.

According to Namnews, President Chavez has been trying to end
major food shortages in Venezuela by increasing the private
sector's supply with state-financed enterprises.  He encouraged
private sector production with measures like increasing prices for
some regulated goods.

Economists worry that President Chavez would scare off investors,
Namnews states.

                          *     *     *

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



===========
X X X X X X
===========

* Moody's and S&P Trying to Patch Up Torn Credibility
-----------------------------------------------------
Proposals to beef up Moody's Corp. and Standard & Poor's credit
rating credibility fell on doubtful ears as the rating companies
continue to rally back confidence on their ratings, Julie Creswell
and Vikas Bajaj of The New York Times report.

Andrew M. Cuomo, the Attorney General of New York, said that his
office is continuing to ascertain whether or not the companies
were informed of current "specific" risks of home mortgages, and
how they were able to assign "AAA" ratings to home mortgage-backed
bonds.  "Both S&P and Moody's are attempting to make piecemeal
change that seems more like public relations window dressing than
systemic reform," the Times quoted Mr. Cuomo as saying.  Mr. Cuomo
however, has not filed any charges against the firms, the Times
says.

The U.S. Securities and Exchange Commission are also investigating
the rating firms, the Times says.

Since the collapse of Enron and other U.S. municipalities, the
agencies' ratings had come under fire, with debt-issuing entities
questioning the quality of their research, relates the Times.
Sean Egan, at Egan-Jones Ratings, told the Times, "This time we're
seeing a breakdown in trust . . . [B]ecause a number of ratings
have been cut from a very high level to an extremely low level in
a very short period of time, buyers don't trust the ratings that
are in the market."

According to the Times, S&P's measures include, among others:

   a) knowing more about issuers' and originators' processes
      used to check the accuracy of their data;

   b) employing an ombudsman to handle complaints; and

   c) employing firms that will check the handling of conflicts
      of interest within the agency.

On the technical side, Moody's is planning to add a prefix of
".sf" to their ratings on structured-finance bonds, in order to
distinguish these from other same-rated bonds.


* S&P Sees Central America's Economic Growth to Decrease in 2008
----------------------------------------------------------------
Standard & Poor's Ratings Services commented that, despite recent
record economic growth rates across Central America in the last
two years, the region's sovereign ratings could feel the impact of
the projected economic slowdown in the United States.

The report, entitled "Central American Sovereign Ratings, Outlook
For 2008: Bad Weather From The North Cooling Down Momentum,"
estimates that Central America's strong economic growth rate will
decrease in 2008, as the region begins to feel the impact of a
projected slowdown in economic growth in the U.S. -- the region's
largest trading partner.

"Standard & Poor's Ratings Services estimates that the region's
average GDP growth rate may fall to 4.5% in 2008 from 6.5% in
2007," said S&P's credit analyst Roberto Sifon Arevalo.  "The size
of the drop will depend upon the extent and deepening of the
decline in the U.S. economy and its impact on the overall global
economy," he added.

Mr. Sifon Arevalo explained that lower economic activity in the
U.S. will have a negative impact on the pace of growth on
remittances-the main driver for consumption in both El Salvador
and Guatemala-negatively affecting growth prospects for 2008.

"We also expect a lower demand for goods and services from the
region, which could affect Costa Rica's exports.  On the other
hand, Panama's economic activity is also expected to decline
somewhat in 2008.  However, it will still remain strong because it
is supported by the Canal expansion project, which should help
mitigate the impact of lower global growth,"  Mr. Sifon Arevalo
concluded.


* SEC Plans to Require Rating Firms to Disclose Past Performance
----------------------------------------------------------------
Kara Scannell of The Wall Street Journal reports on Feb. 9 that
the Securities and Exchange Commission plans to propose rules that
will require credit-ratings firms to disclose the accuracy of past
ratings and distinguish between various products they rate.

The plan came after criticisms emerged that rating firms have
given excessive ratings for various bonds backed by subprime
mortgages and to collateralized debt obligations that heavily
invested in mortgage instruments.  The ratings were later
downgraded, resulting to billions of dollars in write-offs at
financial firms.

According to Ms. Scannell, under the plan disclosed by SEC
Chairman Christopher Cox, "the potential rules "would require
credit-rating agencies to make disclosures surrounding past
ratings in a format that would improve the comparability of track
records and promote competitive assessments of the accuracy of
past ratings."

Ms. Scannell further stated that the SEC may also require firms to
provide the percentage of rated securities that default, or the
number of ratings that resulted in upgrades and downgrades, or how
quickly ratings firms change their scores.

The aim of the planned rules, according to Mr. Cox, would be to
foster "healthy competition" that could involve highlighting and
rewarding "successful past performance to punish chronically poor
and unreliable ratings."


                            ***********


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

Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA.  Marie Therese V. Profetana, Sheryl Joy P. Olano,
Rizande delos Santos, and Pamella Ritah K. Jala, Editors.

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

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Information contained herein is obtained from sources believed to
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