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        T R O U B L E D   C O M P A N Y   R E P O R T E R

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

            Friday, February 29, 2008, Vol. 9, No. 43

                            Headlines


A R G E N T I N A

ALITALIA SPA: Luigi Pacifico Quits as Audit Panel Chairman
BANCO MACRO: Eyes Up to 30% Increase in Loans This Year
BANCO PATAGONIA: Earns ARS133 Million in 2007
CABRA-HUE SRL: Proofs of Claim Verification Deadline is May 16
COOPERATIVA DE TRAVAJO: Trustee Verifies Claims Until April 25

EMPRESA DISTRIBUIDORA: Books ARS122.5-Million Net Income in 2007
FORD MOTOR: European Commission Directs Return of EUR27-Mil. Aid
MAR DEL PLATA: Trustee Verifies Proofs of Claims Until March 26
NIPPON SHEET: Carlyle Group Wants Majority Stake in NH Techno
SANFOR SALUD: Files for Reorganization in Court


B A R B A D O S

BIOVAIL CORP: Sheldon Plener Quits as Barbados Units Director


B E R M U D A

ELAN CORP: Moody's Changes Outlook to Positive; Holds B3 Ratings
SEA CONTAINERS: Court Stretches Plan-Filing Period to April 15


B R A Z I L

AAR CORP: To Acquire Avborne Heavy Maintenance
BANCO DAYCOVAL: Says Credit Demand is High
BANCO DO BRASIL: Says Visanet to Launch Initial Public Offering
BRASKEM SA: Acquires 60% Petrochemical Assets of Ipiranga Group
ENERGIAS DO BRASIL: To Build 500-MW Plant in Norte Capixaba

FIAT SPA: Board Approves Incentive Plan for Key Employees
FIAT SPA: In Talks With BMW on Engine and Gear Box Tie-Up
FIAT SPA: Resumes Production of Multijet Engine in Polish Plant
FORD MOTOR: European Commission Orders Return of EUR27 Mln Aid
GENERAL MOTORS: In Discussions With BMW AG on Possible Tie-Up

GENERAL MOTORS: Fitch Holds IDR at 'B' with Negative Outlook
GOL LINHAS: Unit Signs Interline Agreement With KLM Royal Dutch
GRAPHIC PACKAGING: Reports US$0.7 Mln Net Loss for 2007 4th Qtr.
GREIF INC: Books 60.7-Million Net Income in Qtr. Ended Jan. 31
HERCULES INC: Appoints Allan H. Cohen to Board of Directors

JETBLUE AIRWAYS: Eyes Airline Launch in Brazil
KENDLE INT'L: Net Income Increases to US$18.7 Million in 2007
NOVELL INC: To Acquire PlateSpin for US$205 Million
PETROLEO BRASILEIRO: Extends Contract With Pride
SHARPER IMAGE: Trustee Appoints Unsecured Creditors Committee


C A Y M A N  I S L A N D S

#1 NDC FUDOSAN: Sets Final Shareholders Meeting on March 7
AH INC: To Hold Final Shareholders Meeting on March 7
BANK RAKYAT: Minister Favors Takeover Bid for Bank Tabugan
BANK RAKYAT: Fitch Upgrades Issuer Default Rating to BB from BB-
BANK RAKYAT: May Issue Subordinate Bonds at IDR1 Trillion

HI TECH: Will Hold Final Shareholders Meeting on March 7
PARIS HOTEL: Sets Final Shareholders Meeting for March 7
TREMONT PORTABLE: Sets Final Shareholders Meeting for March 7


C H I L E

QUEBECOR WORLD: To Convert 3,975,663 Preferred Shares on March 1
QUEBECOR WORLD: Names Caille as Restructuring Committee Chairman


C O L O M B I A

CASCADES INC: Reports CAD95-Million Net Earnings in 2007
ECOPETROL: To Increase Annual Oil Output by 12%
PARKER DRILLING: Net Income Up 28% to US$104.1 Million in 2007
SOLUTIA INC: May Pay US$5 Mil. to Waive Backstop Commitment Pact
SOLUTIA INC: Resolution of Adversary Proceeding vs. Exit Lenders

SOLUTIA INC: Court Approves Non-Material Modifications to Plan
* COLOMBIA: S&P Keeps BB+ Long-Term & B Short-Term Credit Rtgs.


C O S T A  R I C A

DOLE FOOD: Will Collaborate With Costa Rican Energy Ministry


D O M I N I C A N   R E P U B L I C

AFFILIATED COMPUTER: Analysts Reaffirm Outperform Rating on Firm


E C U A D O R

DEL MONTE: DA Davidson Keeps Neutral Rating on Firm's Shares
PETROECUADOR: Gov't Positive on Securing Oil Deal in March


E L  S A L V A D O R

AES CORP: Shuts Down Alamitos Power Station's Unit 6
* EL SALVADOR: Stable Environment Cues Fitch to Hold IDRs at BB+


G U Y A N A

FLOWSERVE CORP: Reports US$255.7-Million Net Income in FY 2007
FLOWSERVE CORP: To Repurchase US$300-Million Common Stock


H O N D U R A S

CINEMARK HOLDINGS: To Pay US$0.18 Per Share Dividend on March 14


J A M A I C A

AIR JAMAICA: To Add More Seats on Non-Stop Flights to Barbados
AIR JAMAICA: To Launch Another New York-Grenada Non-Stop Flight
NATIONAL WATER: Restricts Supply on Hermitage/Constant Spring


M E X I C O

BLUE WATER: To Give Access & Security Rights to Big 3 Automakers
BLUE WATER: Can Use Cash Collateral Through March 3
BLUE WATER: PolyOne Objects to US$25,000,000 DIP Financing
CONSTELLATION BRANDS: Appoints Peter Perez as Board Director
COTT CORP: S&P Puts 'CCC+' Sub Debt Rating on CreditWatch Neg.

DESARROLLADORA HOMEX: 2007 Net Income Up 57.7% to MXN2.2 Billion
DURA AUTOMOTIVE: Creditor Opposes Confirmation of Chap. 11 Plan
FLEXTRONICS: Signs EUR3-Million Purchase Deal with Elcoteq
GREENBRIER COS: Unit Applies Receivership in Nova Scotia Court
GRUPO SENDA: Net Income Up 186.7% to MXN101.3MM in 4th Qtr. 2007

GRUPO TMM: Incurs US$66.9-Million Net Loss in Fiscal Year 2007  
PRIDE INTERNATIONAL: Bags Contract Extensions from Petrobras
SPANSION INC: Fitch Maintains Issuer Default Rating at 'B-'
USG CORP: Moody's Cuts Debt Ratings to Ba2 With Negative Outlook
VITRO SAB: Reports Strongest Record Sales in Last Three Years

WOLVERINE TUBE: Extends Credit Facilities' Maturity Dates


P A N A M A

CLOROX CO: Prices US$500 Million Senior Notes Offering


P E R U

GOODYEAR TIRE: To Increase TC Debica Stake to 65.99%
GOODYEAR TIRE: Supports TC Debica Truck Tire Expansion in Poland


P U E R T O  R I C O

CARIBE MEDIA: S&P Holds Credit Rating at B With Stable Outlook
DORAL FINANCIAL: Subsidiary Acquires CitiSeguros Portfolio
HEALTHSOUTH CORP: Dec. 31 Balance Sheet Upside Down by US$1.55BB
LIN TV: Earns US$53.7 Million in Fiscal Year Ended Dec. 31
ROYAL CARIBBEAN: Earns US$71 Mil. in Quarter ended December 31

TRAILER BRIDGE: Weak Performance Cues Moody's Negative Outlook


U R U G U A Y

GERDAU SA: Concludes Acquisition of 49% Stake in Corsa


V E N E Z U E L A

PETROLEOS DE VENEZUELA: Court May Rule on Asset Freeze Next Week
PEROLEOS DE VENEZUELA: To Place Borco Sale Proceeds in Fonden
PETROLEOS DE VENEZUELA: To Set Up Joint Venture With Borets
PETROLEOS DE VENEZUELA: Says Amuay Plant Now Reliable
PETROLEOS DE VENEZUELA: Says No Accidents in Paraguana Unit


X X X X X X

* Moody's Reports Stable Rating Outlooks for Andean Banks


                         - - - - -


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

ALITALIA SPA: Luigi Pacifico Quits as Audit Panel Chairman
----------------------------------------------------------
Luigi Pacifico has handed in his resignation as Chairman of
Alitalia S.p.A.'s Board of Statutory Auditors, with immediate
effect, following the deliberation by the State Auditors’
Department, of which he is a board member, not authorizing him
to continue the full term of his post with the company.

In compliance with current statutory dispositions, Alessandra
Dal Verme takes up the Statutory Auditor post to complete the
composition of the Board of Statutory Auditors.

In compliance with the Company’s current Articles of
Association, Enrico Laghi is in charge as Chairman of the Board
of Statutory Auditors.

                          About Alitalia

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

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

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


BANCO MACRO: Eyes Up to 30% Increase in Loans This Year
-------------------------------------------------------
Banco Macro expects to increase loans by up to 30% this year,
Business News Americas reports, citing the company's Finance and
Investors Relations Manager Jorge Scarinci.

BNamericas relates that Banco Macro's loans to the private
sector rose 69% to ARS9.37 billion in December 2007, compared to
December 2006.

Mr. Scarinci commented to BNamericas, "We are expecting the
system to grow around 25% and Banco Macro's loan portfolio to
grow above that, between 25% and 30%."

Loan growth increased Banco Macro's profits by 17% to
ARS495 million in 2007, BNamericas states.

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

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Dec. 26, 2007, Fitch Ratings affirmed Banco Macro's Foreign and
local currency long-term Issuer Default Ratings at 'B+', Foreign
and local currency short-term IDRs at 'B', and Individual at
'D'.  Fitch's rating outlook is stable.


BANCO PATAGONIA: Earns ARS133 Million in 2007
---------------------------------------------
Banco Patagonia's net profit decreased 51.5% to ARS133 million
in 2007, compared to 2006, Business News Americas reports.

According to Banco Patagonia, its net interest income dropped
5.1% to ARS352 million in 2007, from 2006, on higher interests
paid on deposits, with fee income increasing 35.8% to ARS242
million.

BNamericas relates that Banco Patagonia's administrative
expenses increased 29.4% to ARS404 million, with net charge-offs
rising 97.9% to ARS19 million.

Moody's Investor Service's Vice President and senior analyst
Maria Andrea Manavella commented to BNamericas, "While it has
gradually improved over the last periods, Patagonia's earnings
quality is still highly sensitive to gains on securities and
inflation."

Banco Patagonia told BNamericas that it lessened its exposure to
government bonds and guaranteed loans 30.9% in 2007 to represent
8.5% of total assets.

The report says that Banco Patagonia's net loans to the private
sector rose 56.4% to ARS3.03 billion in December 2007, from
December 2006, past-due loan ratio improved to 2.1% of total
private sector loans from 3.6%.  Deposits from the private
sector grew 30.7% to ARS4.36 billion, accounting for 65.9% of
Banco Patagonia's funding.

Banco Patagonia specializes in public offerings of
securitizations.  It became Argentina's fifth largest locally
owned private bank through its purchase of Lloyds TSB Argentina
in late 2004.  The bank operates through 139 branches and has
202 ATM machines.

                        *     *     *

In November 2007, Moody's Investors Service assigned a Ba1
global local currency deposit rating and Caa1 long-term foreign
currency deposit rating to Banco Patagonia.


CABRA-HUE SRL: Proofs of Claim Verification Deadline is May 16
--------------------------------------------------------------
Alfredo Raul Badaracco, the court-appointed trustee for Cabra-
Hue SRL's bankruptcy proceeding, will be verifying creditors'
proofs of claim until May 16, 2008.

Mr. Badaracco will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 2 in Buenos Aires, with the assistance of Clerk No.
4, 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 Cabra-Hue 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 Cabra-Hue's
accounting and banking records will be submitted in court.

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

The debtor can be reached at:

         Cabra-Hue SRL
         Lavalle 1454
         Buenos Aires, Argentina

The trustee can be reached at:

         Alfredo Raul Badaracco
         Esmeralda 980
         Buenos Aires, Argentina


COOPERATIVA DE TRAVAJO: Trustee Verifies Claims Until April 25
--------------------------------------------------------------
Luis Emilio Miguel Zea, the court-appointed trustee for
Cooperativa de Trabajo Humana Limitada's  reorganization
proceeding, will be verifying creditors' proofs of claim until
April 25, 2008.

Mr. Zea will present the validated claims in court as individual
reports.  The National Commercial Court of First Instance in
Mendoza 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 Cooperativa de Trabajo 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 Cooperativa de
Trabajo's accounting and banking records will be submitted in
court.

Infobae didn't state the submission deadlines for the reports.

The debtor can be reached at:

        Cooperativa de Trabajo Humana Limitada
        Tucuman 185, Godoy Cruz
        Mendoza, Argentina

The trustee can be reached at:

        Luis Emilio Miguel Zea
        9 de Julio 1357, Ciudad de Mendoza
        Mendoza, Argentina


EMPRESA DISTRIBUIDORA: Books ARS122.5-Million Net Income in 2007
----------------------------------------------------------------
Empresa Distribuidora y Comercializadora Norte S.A. reported its
results for the year ended Dec. 31, 2007.  All figures are
stated in Argentine Pesos and have been prepared in accordance
with Argentine GAAP.

                       2007 Highlights

Net Sales increased 43.8% to ARS1,981.9 million in the year
ended Dec. 31, 2007, compared to ARS1,378.3 million in the year
ended Dec. 31, 2006.  This increase is largely due to the
application of the VAD increase and the Cost Monitoring
Mechanism (CMM) adjustments to the company's non residential
customers from Feb. 1, 2007, the recording in the year ended
Dec. 31, 2007, of the full amount of the retroactive portion of
the VAD increase for the period from Nov. 1, 2005, to Jan. 31,
2007, and to an increase in the volume of energy sold.  The
retroactive portion of the VAD increase (including CMM) resulted
in a positive impact of ARS218.6 million.  As of Dec. 31, 2007,
the company had already invoiced ARS47.3 million of that amount
while ARS171.3 million remains unbilled.

In October 2007 the ENRE allowed the company to recognize the
CMM adjustment for the period May 2006 to April 2007 (9.63%)
applicable as of May 1, 2007.  Such adjustment can be deducted
from the funds resulting from the difference between surcharges
billed and discounts made to customers, deriving from the
implementation of the Program for the Rational Use of Electric
Power, until their transfer to the tariff is granted by the
ENRE.  The impact of this adjustment in net sales for the eight-
month period between May and Dec. 2007 amounted to ARS49.6
million.

Volume of Energy Sold increased by 7.5% to 17,886.1 GWh in the
year ended Dec. 31, 2007, from 16,632.1 GWh in the year ended
Dec. 31, 2006.  The increase in volume is attributable to a 5.6%
increase in the average GWh consumption per customer and a 1.8%
increase in the number of customers.

Gross Margin increased significantly (88.5%) to ARS1,092 million
in the year ended Dec. 31, 2007, from ARS 579.3 million in the
year ended Dec. 31, 2006, mainly due to the application to the
company's non residential customers of the increase in its
distribution margin (VAD) from Feb. 1, 2007, the recording of
the retroactive portion of the VAD increase for the period from
Nov. 1, 2005, through Jan. 31, 2007, the recording of the May
2006 to April 2007 CMM adjustment and the increase in volume of
energy sold.

Net Operating Income increased significantly from
ARS35.9 million in the year ended Dec. 31, 2006 to
ARS429.2 million in the year ended Dec. 31, 2007, mainly due to
the application of the VAD increase and CMM adjustments
described above and to an increase in energy and power capacity
sold.

Net Income reached ARS122.5 million in the year ended Dec. 31,
2007, compared to ARS293.1 million in the year ended Dec. 31,
2006.  In the year ended Dec. 31, 2007, net income was
positively affected by the application of the VAD increase,
which results in a higher pre-tax net income of ARS 247.4
million in 2007 compared to ARS125.9 million in the same period
of 2006.  These results were affected by the recording of an
income tax charge of ARS125 million in 2007 and an income tax
gain of ARS167.2 million in 2006.

                  About Empresa Distibuidora

Based in Buenos Aires, Argentina, Empresa Distribuidora y
Comercializadora Norte S.A. aka Edenor is the largest
electricity distribution company in Argentina in terms of number
of customers and volume of energy sold.  The company commenced
operations in 1992, as a result of the privatization of the
previously state-owned SEGBA.  At that time, it was granted a
95-year concession to distribute electricity on an exclusive
basis in its concession area, the greater Buenos Aires
metropolitan area and northern portion of the City of Buenos
Aires.  EASA, which is controlled by Dolphin Energia S.A., is
Edenor's holding company.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Nov. 1, 2007, Standard and Poor's Argentina Assigns its 'B'
Rating on US$220 Million Bond issued by Empresa Distribuidora y
Comercializadora Norte S.A with annual fixed interest rate of
10.5% Notes due 2017.  S&P said the outlook is positive.
ARS2 billion and net income of ARS122.5 million.


FORD MOTOR: European Commission Directs Return of EUR27-Mil. Aid
----------------------------------------------------------------
The European Commission has ordered the government of Romania to
recover EUR27 million in state aid from Ford Motor Co., Reuters
reports.

The European Union executive ruled that Romania handed illegal
state aid to Daewoo Craiova, formerly Daewoo Automobile Romania
S.A., during the car's sale to Ford in September 2007, Reuters
relates.  

Following a five-month probe, EC said that conditions binded to
the sale of a 72% stake in Craiova -- including minimum
production level and employment guarantees -- resulted to lower
price than if the sale was unconditional, which amounted to
illegal aid.

"Regional development, which the Commission supports, must not
allow distortions of competition," Commissioner Neelie Kroes was
quoted by Reuters as saying.

Meanwhile, Romania's Prime Minister Calin Tariceanu said he was
"unpleasantly surprised" by the decision, but ruled out an
appeal, noting that the government was rushing to close the
deal, Reuters relates.

Ford of Europe welcomes the announcement by the EC that it has
closed its investigation into the privatization process of
Automobile Craiova in Romania, thus clearing the way for Ford's
purchase of the vehicle manufacturing facility.

The purchase of the plant will be finalized following the
ratification of the special law for the privatisation of
Automobile Craiova which is before the Romanian Parliament.  The
special law is expected to be ratified on March 4, 2008.

"I am pleased that the European Commission has concluded its
investigation in such a short period of time," Ford of Europe
President and CEO, John Fleming said.  "We worked with the
Romanian authorities around the clock to provide all the
necessary information to help the Commission come to its
decision.

"Nothing has changed in our exciting plans for the Craiova
plant", Mr. Fleming said.  "Our goal is now to assume full
ownership of the plant as quickly as possible and turn it into a
world-class manufacturing complex."

Ford said in October 2007 that it acquired Daewoo Romania
believing the privatization was in line with all EU laws,
Reuters relates.

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

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

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 15, 2008, Fitch Ratings affirmed the Issuer Default Ratings
of Ford Motor Company and Ford Motor Credit Company at 'B', and
maintained the Rating Outlook at Negative.

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.


MAR DEL PLATA: Trustee Verifies Proofs of Claims Until March 26
---------------------------------------------------------------
Estudio Penna y Steinhaus, the court-appointed trustee for Mar
del Plata S.A.'s  reorganization proceeding, will be verifying
creditors' proofs of claim until March 26, 2008.

Estudio Penna will present the validated claims in court as
individual reports on May 12, 2008.  The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Mar del Plata 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 Mar del Plata's
accounting and banking records will be submitted in court on
June 24, 2008.

Creditors will vote to ratify the completed settlement plan
during the assembly on Nov. 26, 2008.

The trustee can be reached at:

        Estudio Penna y Steinhaus
        Defensa 649
        Buenos Aires, Argentina


NIPPON SHEET: Carlyle Group Wants Majority Stake in NH Techno
-------------------------------------------------------------
Carlyle Group, according to Bloomberg News, may purchase a
majority stake in NH Techno Glasss Corp., a joint venture
between Nippon Sheet Glass Co. and Hoya Corp.

According to the same paper, the transaction may be carried out
through a leveraged buyout for JPY100 billion (US$1.3 billion).  

"We'll see more mergers and acquisitions in Japan as Japanese
companies are increasingly selling non-core assets and focusing
on their main business,"

Taiji Okusu, managing director of investment banking at Credit
Suisse Securities (Japan) Ltd., told Bloomberg.

Nippon Sheet said that it would consider selling its fifty
percent holdings in NH Techno, which manufactures glass
compounds used in liquid-crystal display television panels.

                       About Nippon Sheet

Headquartered in Tokyo, Nippon Sheet Glass Company, Limited --
http://www.nsg.co.jp-- Company operates in four business   
divisions.  Its Glass and Construction Material division
manufactures, processes and sells various types of glasses, such
as float plate, polished wire, heat absorbing, heat reflecting,
reinforced, laminated, double-layer, vacuum, fireproof,
template, mirror and ornamental glass, as well as sashes.  It
also supplies construction materials, and interior accessories
for stores.  The Information and Electronics division offers
optical products, fine glass products, industrial glass
products, liquid crystal display (LCD) products and others.  Its
Glass Fiber division is engaged in the manufacture, processing
and sale of special glass fiber products, air filter-related
items and others.  The Others division is involved in the
facility engineering and the test analysis businesses, among
others.  The company has operations in Argentina, the United
States, and Austria.

Nippon Sheet carries Mikuni Credit Rating's BB rating.  


SANFOR SALUD: Files for Reorganization in Court
-----------------------------------------------
Sanfor Salud SA has requested for reorganization approval after
failing to pay its liabilities since Dec. 12, 2007.

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

The case is pending in the National Commercial Court of First
Instance No. 17 in Buenos Aires.  Clerk No. 34 assists the court
in this case.

The debtor can be reached at:

          Sanfor Salud SA
          King 348
          Buenos Aires, Argentina



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

BIOVAIL CORP: Sheldon Plener Quits as Barbados Units Director
-------------------------------------------------------------
Biovail Corporation disclosed that Sheldon Plener has resigned
from the company’s Board of Directors, effective immediately,
given his business and personal relationship with Eugene Melnyk,
who is no longer affiliated with the company in any management
capacity.  Mr. Melnyk has resigned as a director and officer of
the company’s two Barbados subsidiaries.

Mr. Plener joined Biovail’s Board of Directors in 2002.  Biovail
thanked him for his years of service to the company and its
shareholders.

Biovail Corp. -- http://www.biovail.com/-- is a specialty
pharmaceutical company, engaged in the formulation, clinical
testing, registration, manufacture and commercialization of
pharmaceutical products utilizing advanced drug-delivery
technologies.

Biovail operates R&D, manufacturing and clinical research
facilities in the U.S., Canada, Barbados, Puerto Rico and
Ireland.  It markets its products directly in North American
through its marketing divisions Biovail Pharmaceuticals Inc. and
Biovail Pharmaceuticals Canada.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Dec. 10, 2007, Standard & Poor's Ratings Services has lowered
its long-term corporate credit rating on Biovail Corp. to 'BB'
from 'BB+'.  At the same time, S&P affirmed the 'BBB-' senior
secured debt rating, while the recovery rating remains unchanged
at '1', indicating an expectation of very high (90%-100%)
recovery in the event of a payment default.  S&P said the
outlook is stable.



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

ELAN CORP: Moody's Changes Outlook to Positive; Holds B3 Ratings
----------------------------------------------------------------
Moody's Investors Service revised the rating outlook for Elan
Corporation plc and Elan Finance plc to positive from stable.  
At the same time, Moody's affirmed Elan's existing ratings
including the B3 Corporate Family Rating.

Moody's last rating action on Elan was an affirmation of the
ratings with a stable rating outlook on Nov. 9, 2006 in
conjunction with a B3 rating assignment to a senior note
offering.

"The change in Elan's rating outlook to positive reflects steady
market acceptance of Tysabri approximately 18 months after the
re-launch," stated Moody's Senior Vice President Michael
Levesque.   Other positive developments include the recent FDA
approval of Tysabri in moderate to severe Crohn's disease, and
the initiation of Phase III clinical trials of bapineuzumab in
Alzheimer's disease in a collaboration with Wyeth.

"However, thee B3 rating remains constrained by uncertainty that
Elan will attain positive free cash flow, especially if any
additional PML cases arise," continued Levesque.

Elan's B3 Corporate Family Rating reflects the criteria outlined
in Moody's Global Pharmaceutical Rating Outlook including size
and scale (where Elan maps to the "B" category), cash flow
relative to debt ("Caa"), and cash coverage of debt ("Ba").  
Elan's rate of cash use is still significant, reflecting higher
spending on R&D, and generic pressures affecting the Maxipime
franchise.

A rating upgrade could result from additional market acceptance
of Tysabri, leading Moody's to conclude that Elan is on a clear
path to generating positive free cash flow.  Negative rating
pressure could develop if Moody's believes that Elan is unlikely
to ever achieve positive earnings and cash flow.

Ratings affirmed:

Elan Corporation plc:

  -- B3 Corporate Family Rating
  -- B2 Probability of Default Rating

Elan Finance plc:

  -- B3 (LGD4, 65%) fixed rate senior notes of US$850 million
     due 2011 (guaranteed by Elan Corporation, plc and
     subsidiaries)

  -- B3 (LGD4, 65%) floating rate senior notes of US$300 million
     due 2011 (guaranteed by Elan Corporation, plc and
     subsidiaries)

  -- B3 (LGD4, 65%) fixed rate senior notes due 2013 (guaranteed  
     by Elan Corporation, plc and subsidiaries)

Elan Corporation, plc is a specialty biopharmaceutical company
headquartered in Dublin Ireland, with areas of expertise in
neurological and autoimmune disease, and drug delivery
technology. The company reported $759 million of total revenue
in 2007.  The company has locations in Bermuda and Japan.


SEA CONTAINERS: Court Stretches Plan-Filing Period to April 15
--------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware further
extended, until April 15, 2008, Sea Containers Ltd. and its
debtor-affiliates' exclusive period to file a plan of
reorganization.

The Court also fixed June 16, 2008, as the deadline for the
Debtors to solicit acceptances of that plan.

As reported in the Troubled Company Reporter on Feb. 18, 2008,
the Debtors told the Court that this will be their last request
for an extension of the Exclusive Periods, in accordance with
Section 1121(d)(2) of the U.S. Bankruptcy Code.

The Debtors related that since filing their last exclusivity
request, they have made substantial progress on the (i) change
of control arbitration, and (ii) treatment of claims arising on
account of the Debtors' pension scheme liabilities.  The Debtors
also hope to engage in discussions with GE to resolve open
disputed issues between them with respect to GE SeaCo.

The Debtors related that they obtained a favorable result in the
change of control arbitration.  The arbitrator ruled in favor of
Sea Containers Ltd. by finding that a change of control did not
occur as a result of the resignation of Jim Sherwood, its
president, chief executive officer, and chairman of the board.

The Debtors also related that they have reached agreement on the
terms of a settlement with the Official Committee of Unsecured
Creditors for Sea Containers Services Ltd. and the Pension
Trustees with respect to the Debtors' pension scheme
liabilities.  The Debtors expect to file a request to approve
the settlement in the near term.

Maintaining exclusivity will allow the Debtors to focus on
obtaining approval of the Pension Settlement, which the Debtors'
view as a prerequisite to filing a Chapter 11 plan.  Failure to
obtain the extension can lead only to unnecessary distraction
and delay in resolving the Debtors' pension scheme liabilities,
a task that must be completed before a viable Plan can be
presented to the Court, the Debtors said.

The Debtors believe that the requested extension will also
facilitate the arrangement of exit financing.

                        About Sea Containers

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

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

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

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

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

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



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

AAR CORP: To Acquire Avborne Heavy Maintenance
----------------------------------------------
AAR unveiled that it has signed an agreement to acquire Avborne
Heavy Maintenance, Inc. and a related entity from AHM Holding,
Corp.

Avborne is an independent provider of aircraft heavy maintenance
checks, modifications, installations and painting services to
commercial airlines, international cargo carriers and major
aircraft leasing companies.  Founded in 1985, Avborne performs
heavy maintenance on both Airbus and Boeing aircraft at its
226,000 square-foot hangar, located at Miami International
Airport.  The Avborne facility is capable of accommodating up to
three wide-body aircraft or nine narrow-body aircraft,
simultaneously.

The company expects the acquisition will be completed during the
fourth quarter of its fiscal year 2008, subject to customary
closing conditions.  The newly acquired business will operate as
part of AAR’s Maintenance, Repair and Overhaul segment.

AAR currently operates MRO facilities in Indianapolis, Indiana,
Oklahoma City, Oklahoma and Hot Springs, Arkansas and was ranked
among the top 10 MROs in the world according to a 2007 study
conducted by Aviation Week’s Overhaul and Maintenance magazine.

                       About AAR Corp.

AAR Corp. (NYSE: AIR) -- http://www.aarcorp.com/-- provides
products and value-added services to the worldwide aviation and
aerospace industry.  With facilities and sales locations around
the world, AAR uses its lose-to-the-customer business model to
serve airline and defense customers through Aviation Supply
Chain; Maintenance, Repair and Overhaul; Structures and Systems
and Aircraft Sales and Leasing.  In Asia Pacific, the company
has offices in Singapore, China, Japan and Australia.  In Latin
America, the company has a sales office in Rio de Janeiro,
Brazil.

                        *     *     *

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


BANCO DAYCOVAL: Says Credit Demand is High
------------------------------------------
Banco Daycoval S.A. saw high demand for credit through the
beginning of this year.

Investor Relations Manager Carlos Lazar commented to Business
News Americas, "January was a very good month for the bank and
so far February has been as well.  Credit demand is high, which
is helping us maintain good spreads.  We grew almost five times
more than the credit market.  Our results were even better than
our business plan for 2007."

According to BNamericas, Banco Daycoval increased its loan book
112% to BRL3.48 billion in 2007, from 2006, middle-market
lending grew 73.2% to BRL2.26 billion, and trade finance rose
214% to BRL239 million.

BNamericas notes that Banco Daycoval's payroll loans increased
130% to BRL543 million.  Financing for used vehicles totaled
BRL438 million.

Banco Daycoval wants to continue to diversify its loan
portfolio, with middle-market lending remaining the focus.  
Middle market and trade finance was 72% of the loan book and
retail lending 28% in 2007.  Banco Daycoval will  adjust the mix
to 70:30 by year-end.  It wants to move ahead with expanding
trade finance lines and the bank is developing a new product for
companies with up to BRL8 million in yearly revenue, Mr. Lazar
told BNamericas.

"We're starting slowly.  This is a segment barely served by mid-
size banks and poorly served by big banks.,” Mr. Lazar commented
to BNamericas.

Headquartered in Sao Paulo, Brazil, Banco Daycoval started its
activities in 1968, with the creation of Daycoval DTVM and Valco
Corretora de Valores.  Brothers Ibrahim and Sasson Dayan control
the bank.  It is the core business of its shareholders and
specialises in financing small- and medium-sized companies,
backed by receivables.  It also operates with consignment
lending for payroll deduction and consumer financing.  Since
June 2007, the bank has had 29% of its shares traded at Bovespa
on the New Brazilian Stock Market.  These shares enjoy a tag-
along privilege, giving minority shareholders 100% of the value
of the block of controlling shares in the event of the sale of
the institution.

                         *     *     *

As reported in the Troubled Company Reporter-Latin America on
Nov. 27, 2007, Fitch Ratings placed Banco Daycoval S.A.'s
Long-term foreign currency Issuer Default Rating at 'BB-' and
Long-term local currency IDR at 'BB-' with a Stable Outlook.


BANCO DO BRASIL: Says Visanet to Launch Initial Public Offering
---------------------------------------------------------------
Banco do Brasil Chief Financial Officer Aldo Luiz Mendes told
reporters that the bank expects credit card transaction
processing company Visanet to conduct an initial public offering
before the end of the first half of this year.

Business News Americas relates that Banco do Brasil owns 32% of
Visanet.

Mr. Mendes told reporters that Visa asked Visanet to wait until
after it launched its own offering, which is expected to reach
US$18.9 billion and rank as the largest ever in the US.

Banco do Brasil is Brazil's federal bank and is the largest in
Latin America with some 20 million clients and more than 7,000
points of sale (3,200 branches) in Brazil, and 34 offices and
partnerships in 26 other countries.  In addition to its
traditional retail banking services, Banco do Brasil underwrites
and sells bonds, conducts asset trading, offers investors
portfolio management services, conducts financial securities
advising, and provides market analysis and research.

                           *     *     *

On Nov. 6, 2007, Moody's Investors Service assigned a Ba2
foreign currency deposit rating to Banco do Brasil.  On Aug. 23,
2007, Moody's assigned a Ba2 long-term bank deposit rating on
the bank with a stable outlook.

In May 2007, Standard & Poor's Ratings Services raised its long-
term foreign currency counterparty credit rating on Brazilian
government-related entity Banco do Brasil to 'BB+' from 'BB',
after Brazil's foreign currency sovereign credit rating was
upgraded to BB+.


BRASKEM SA: Acquires 60% Petrochemical Assets of Ipiranga Group
---------------------------------------------------------------
Braskem reported that 60% of the petrochemical assets of the
Ipiranga Group, consisting of the 60% interest in Ipiranga
Quimica, were effectively transferred to the company.

As a result of the transaction, Braskem now holds a direct
interest of 60% in Ipiranga Quimica, an indirect interest of 60%
in Ipiranga Petroquimica, and a direct and indirect interest of
62.7% in Copesul.  The remaining 40% of Ipiranga Quimica were
delivered to Petrobras.

The conclusion of the acquisition of these petrochemical assets
allows for the implementation of the Investment Agreement
entered into with Petrobras last November.  Through this
agreement Petrobras and Petroquisa interests, corresponding to
40% of the petrochemical assets of Ipiranga, 40% of Petroquimica
Paulinia, as well as the option to incorporate Petroquimica
Triunfo, will be incorporated into Braskem, in exchange for
approximately 103.4 million shares of Braskem.

According to Braskem Chief Executive Officer, Jose Carlos
Grubisich, "The conclusion of this transaction represents an
important step in the consolidation of the Brazilian
petrochemical industry and will enable Braskem to accelerate the
capture of synergies, estimated at US$1.1 billion in net present
value."

Braskem (BOVESPA: BRKM5; NYSE: BAK; LATIBEX: XBRK) --
http://www.braskem.com.br/-- is a thermoplastic resins   
producer in Latin America, and is among the three largest
Brazilian-owned private industrial companies.  The company
operates 13 manufacturing plants located throughout Brazil, and
has an annual production capacity of 5.8 million tons of resins
and other petrochemical products.  The company reported
consolidated net revenues of about US$9 billion in the trailing
twelve months through Sept. 30, 2007.

                          *     *    *

As reported in the Troubled Company Reporter-Latin America on
Jan. 17, 2008, Fitch Ratings affirmed the 'BB+' foreign and
local currency issuer default ratings of Braskem S.A.  Fitch
also affirmed the 'BB+' ratings on the company's senior
unsecured notes 2008, 2014, and senior unsecured notes 2017.


ENERGIAS DO BRASIL: To Build 500-MW Plant in Norte Capixaba
-----------------------------------------------------------
Energias do Brasil S.A. will construct 500-megawatt gas-fired
plant  Norte Capixaba in Espirito Santo, Business News Americas
reports.

Energias do Brasil's director Hugo Souza told BNamericas that
Energias do Brasil will sell power from Norte Capixaba in
Brazilian power regulator Aneel's auction on July 16.  
BNamericas notes that Energias do Brasil has until March 6 to
register Norte Capixaba in the auction to deliver power starting
2013.  Registration will be possible once the company ensures
natural gas supplies for the project.

According to BNamericas, Energias do Brasil is negotiating with
federal energy firm Petrobras to secure natural gas for Norte
Capixaba.

Energias do Brasil's director Hugo Souza commented to
BNamericas, "We expect Norte Capixaba to use 2.3 million cubic
meters per day."  

Energias do Brasil could try to secure liquefied natural gas
supplies from Algeria's Sonatrach if the talks with Petrobras
fail, BNamericas states, citing Mr. Souza.

Energias do Brasil S.A. is an integrated utility group
controlled by Energias de Portugal, with activities in
generation, distribution and commercialization of electricity.  
Its power distribution subsdiaries Bandeirante, Escelsa and
Enersul represent altogether some 64% of consolidated total
assets, while the power generation assets represent some 31%.  

                        *     *     *

In May 2007, Moody's Investors Service placed a Ba2 long-term
corporate family rating on Energias do Brasil.


FIAT SPA: Board Approves Incentive Plan for Key Employees
---------------------------------------------------------
The Board of Directors of Fiat S.p.A. met Tuesday to discuss a
new incentive plan to be authorized by the Stockholders Meeting
of March 31, 2008.

According to a press release, the company says that on the basis
of the recommendation of the Compensation Committee and in view
of current capital market conditions, the Board approved an
Incentive Plan to address attraction and retention of key
employees.

The plan – which will be submitted, pursuant to Article 114bis
of the Consolidated Financial Act to the next Stockholders’
Meeting – will be fashioned similarly to the Nov. 3, 2006 stock
option grant in terms of achievement of predetermined
performance criteria, vesting period, and the period available
to exercise (from 2011 through 2014).

The plan, if approved, will give Fiat the flexibility to grant a
maximum aggregate amount of 4 million financial instruments
either in the form of stock options or of Stock Appreciation
Rights (SARs) to be awarded periodically through the end of
2010.  SARs, subject to the vesting condition being satisfied,
entitle the beneficiaries to a cash compensation based on the
increase in the company’s ordinary stock price.

Each SAR will give right to a compensation (to be settled either
in cash or in ordinary shares) equal the difference between the
company’s ordinary stock official price at the exercise date and
the strike price at the granting date.  Such SAR strike price
will be equal to the arithmetical average of the official prices
posted on the Italian Stock Exchange in the thirty calendar days
prior to the grant date.

Similarly, under the plan the company will be authorized to
grant up to a maximum of 4 million stock options on a maximum 4
million of underlying ordinary shares (in the event no SARs are
granted) or a number which together with the number of SARs
issued will not exceed 4 million.  Such stock options will be
offered at a strike price equal to the arithmetical average of
the official prices posted on the Italian Stock Exchange in the
thirty calendar days prior to the grant date.  The Plan will be
serviced through treasury shares without issuance of new shares.

                       About Fiat S.p.A.

Headquartered in Turin, Italy, Fiat S.p.A. --
http://www.fiatgroup.com/-- is one of the largest industrial
groups in Italy and the fourth largest European-based automobile
manufacturer, with revenues of EUR33.4 billion in the first nine
months of 2005.  Fiat's creditors include Banca Intesa, Banca
Monte dei Paschi di Siena, Banca Nazionale del Lavoro,
Capitalia, Sanpaolo IMI, and UniCredito Italiano.

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

                        *     *     *

As reported on Nov. 6, 2007, Moody's Investors Service changed
the outlook on Fiat S.p.A. and subsidiaries' Ba3 Corporate
Family Rating to positive from stable and affirmed its Ba3 long-
term senior unsecured ratings as well as the short-term
non-Prime rating.

On Oct. 4, 2007, Fitch Ratings affirmed Fiat S.p.A.'s Issuer
Default and senior unsecured ratings at BB- and Short-term
rating at B.

The company carries Standard & Poor's Ratings Services' BB long-
term corporate credit rating.  The compay also carries B short-
term rating.  S&P said the outlook is stable.


FIAT SPA: In Talks With BMW on Engine and Gear Box Tie-Up
---------------------------------------------------------
Bayerische Motoren Werke AG is in talks with General Motors Corp
and Fiat SpA on a possible tie-up on engines and gear boxes, the
Thomson Financial reports citing a Financial Times Deutschland
pre-release.

According to the report, BMW is also in talks with Daimler AG's
Mercedes-Benz on a possible tie-up for the joint development of
new gear systems and automotive components.  The talks however
are tuning out to be difficult than expected, the report adds.

                             About BMW

Bayerische Motoren Werke AG, better known as BMW -–
http://www.bmw.com/-- is one of Europe's top automakers.  BMW's  
car offerings include sedans, coupes, convertibles, and sport
wagons in the 3 Series, 5 Series, 6 Series, and 7 Series model
groups. Other models include the M3 coupe and convertible; the
X5 sport utilities; and the Z4 roadster.  In addition to its BMW
automobiles, the company's operations include motorcycles (K
1200 GT, R 1200 RT, and F 800 S models, among others), the MINI
automotive brand, Rolls-Royce Motor Cars, and software (softlab
GmbH).  BMW's motorcycle division also offers a line of
motorcycling apparel such as leather suits, gloves, and boots.

                    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.

                       About Fiat S.p.A.

Headquartered in Turin, Italy, Fiat S.p.A. --
http://www.fiatgroup.com/-- is one of the largest industrial
groups in Italy and the fourth largest European-based automobile
manufacturer, with revenues of EUR33.4 billion in the first nine
months of 2005.  Fiat's creditors include Banca Intesa, Banca
Monte dei Paschi di Siena, Banca Nazionale del Lavoro,
Capitalia, Sanpaolo IMI, and UniCredito Italiano.

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

                        *     *     *

As reported on Nov. 6, 2007, Moody's Investors Service changed
the outlook on Fiat S.p.A. and subsidiaries' Ba3 Corporate
Family Rating to positive from stable and affirmed its Ba3 long-
term senior unsecured ratings as well as the short-term
non-Prime rating.

On Oct. 4, 2007, Fitch Ratings affirmed Fiat S.p.A.'s Issuer
Default and senior unsecured ratings at BB- and Short-term
rating at B.

The company carries Standard & Poor's Ratings Services' BB long-
term corporate credit rating.  The compay also carries B short-
term rating.  S&P said the outlook is stable.


FIAT SPA: Resumes Production of Multijet Engine in Polish Plant
---------------------------------------------------------------
Fiat S.p.A. disclosed in its Web site that anomalies related to
an externally-supplied component of the 1.3 Multijet engine have
been resolved and production of the engines resumed last
Saturday in the Bielsko Biala plant in Poland.

Production of cars that mount this engine was expected to resume
last Tuesday, February 26.

The suspension of production activities involved certain
production lines of the Mirafiori, Melfi, Termini Imerese, Tychy
and Bursa plants, where models equipped with 1.3 Multijet
engines are produced.  All of these plants resumed normal
activity yesterday, February 27.

The company relates that it made every possible effort to speed
up controls and adaptations that became necessary as well as to
reduce delays in delivery to customers to the minimum.

Although Fiat is aware that this suspension of production, which
has now been resolved, will have repercussions on its delivery
volumes for the month of February, it nonetheless decided to
adopt an uncompromising and rigorous approach so as to guarantee
the highest levels of product quality to its customers.

Despite the cost that these measures will have, the Group
confirms its targets for 2008.

                   Suspension of Production

The company had earlier disclosed that as a result of the
constant quality controls carried out on all the components of
Fiat Group Automobiles cars, a number of anomalies have emerged
with regard to an externally-supplied component for the 1.3
Multijet engine.

In order to verify that this supply of components meets the
quality standards requested by Fiat, the company decided to
suspend production of the engines and cars on which they are
mounted.

                       About Fiat S.p.A.

Headquartered in Turin, Italy, Fiat S.p.A. --
http://www.fiatgroup.com/-- is one of the largest industrial
groups in Italy and the fourth largest European-based automobile
manufacturer, with revenues of EUR33.4 billion in the first nine
months of 2005.  Fiat's creditors include Banca Intesa, Banca
Monte dei Paschi di Siena, Banca Nazionale del Lavoro,
Capitalia, Sanpaolo IMI, and UniCredito Italiano.

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

                        *     *     *

As reported on Nov. 6, 2007, Moody's Investors Service changed
the outlook on Fiat S.p.A. and subsidiaries' Ba3 Corporate
Family Rating to positive from stable and affirmed its Ba3 long-
term senior unsecured ratings as well as the short-term
non-Prime rating.

On Oct. 4, 2007, Fitch Ratings affirmed Fiat S.p.A.'s Issuer
Default and senior unsecured ratings at BB- and Short-term
rating at B.

The company carries Standard & Poor's Ratings Services' BB long-
term corporate credit rating.  The compay also carries B short-
term rating.  S&P said the outlook is stable.


FORD MOTOR: European Commission Orders Return of EUR27 Mln Aid
--------------------------------------------------------------
The European Commission has ordered the government of Romania to
recover EUR27 million in illegal state aid from Ford Motor Co.,
Reuters reports.

The European Union executive ruled that Romania handed illegal
state aid to Daewoo Craiova, formerly Daewoo Automobile Romania
S.A., during the car's sale to Ford in September 2007, Reuters
relates.  

Following a five-month probe, EC said that conditions binded to
the sale of a 72% stake in Craiova -- including minimum
production level and employment guarantees -- resulted to lower
price than if the sale was unconditional, which amounted to
illegal aid.

"Regional development, which the Commission supports, must not
allow distortions of competition," Commissioner Neelie Kroes was
quoted by Reuters as saying.

Meanwhile, Romania's Prime Minister Calin Tariceanu said he was
"unpleasantly surprised" by the decision, but ruled out an
appeal, noting that the government was rushing to close the
deal, Reuters relates.

                        Ford's Statement

In its website, Ford of Europe said that it welcomes the
announcement by the European Commission that it has closed its
investigation into the privatisation process of Automobile
Craiova in Romania, thus clearing the way for Ford's purchase of
the vehicle manufacturing facility.

The purchase of the plant will be finalised following the
ratification of the special law for the privatisation of
Automobile Craiova which is before the Romanian Parliament.  The
special law is expected to be ratified on March 4, 2008.

"I am pleased that the European Commission has concluded its
investigation in such a short period of time," said Ford of
Europe President and CEO, John Fleming.  "We worked with the
Romanian authorities around the clock to provide all the
necessary information to help the Commission come to its
decision.

"Nothing has changed in our exciting plans for the Craiova
plant", said Fleming.  "Our goal is now to assume full ownership
of the plant as quickly as possible and turn it into a world-
class manufacturing complex."

                       About Ford Motor

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

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

                          *     *     *

As reported in the Troubled Company Reporter-Europe on Nov. 20,
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: In Discussions With BMW AG on Possible Tie-Up
-------------------------------------------------------------
Bayerische Motoren Werke AG is in talks with General Motors
Corp. and Fiat SpA on a possible tie-up on engines and gear
boxes, the Thomson Financial reports citing a Financial Times
Deutschland pre-release.

According to the report, BMW is also in talks with Daimler AG's
Mercedes-Benz on a possible tie-up for the joint development of
new gear systems and automotive components.  The talks however
are tuning out to be difficult than expected, the report adds.

                             About BMW

Bayerische Motoren Werke AG, better known as BMW --
http://www.bmw.com/-- is one of Europe's top automakers.  BMW's  
car offerings include sedans, coupes, convertibles, and sport
wagons in the 3 Series, 5 Series, 6 Series, and 7 Series model
groups. Other models include the M3 coupe and convertible; the
X5 sport utilities; and the Z4 roadster.  In addition to its BMW
automobiles, the company's operations include motorcycles (K
1200 GT, R 1200 RT, and F 800 S models, among others), the MINI
automotive brand, Rolls-Royce Motor Cars, and software (softlab
GmbH).  BMW's motorcycle division also offers a line of
motorcycling apparel such as leather suits, gloves, and boots.

                        About Fiat S.p.A.

Headquartered in Turin, Italy, Fiat S.p.A. --
http://www.fiatgroup.com/-- is one of the largest industrial
groups in Italy and the fourth largest European-based automobile
manufacturer, with revenues of EUR33.4 billion in the first nine
months of 2005.  Fiat's creditors include Banca Intesa, Banca
Monte dei Paschi di Siena, Banca Nazionale del Lavoro,
Capitalia, Sanpaolo IMI, and UniCredito Italiano.

                     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, including the United Kingdom, Germany,
France, Russia, Brazil and India.  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.  


GENERAL MOTORS: Fitch Holds IDR at 'B' with Negative Outlook
------------------------------------------------------------
Fitch Ratings has affirmed the Issuer Default Rating of General
Motors at 'B', with a Rating Outlook Negative.

Fitch projects that despite significant cost reduction programs
that have occurred at GM's North American operations, negative
cash flows at GM are expected to increase in 2008, leading to
more pronounced liquidity drains.  Weak economic conditions in
the U.S., continuing restructuring costs, high commodity costs
and supplier issues (including Delphi) will more than offset
healthy results from international operations.  In the absence
of improvement in North American economic conditions or access
to additional capital, Fitch projects that GM's liquidity could
drop below US$20 billion within the next year.  As a result,
Fitch expects that further restructuring will be required in
addition to the current employee buyout program.  The persistent
lack of profitability, even with a lower fixed cost base,
indicates that GM will have to further prune low-margin vehicles
and production capacity.  Fitch expects that this will lead to
the closure of at least three more assembly plants over the
intermediate term than has been announced to date.

GM has made very substantial improvement in its North American
cost structure and over the past five years has significantly
mitigated risks and liabilities associated with its pension and
OPEB obligations.  The terms of the recent UAW agreement,
including the transfer of healthcare cost inflation from GM to
the UAW trust, will realize meaningful cash savings beginning in
2010.  However, this has come at a cost.  GM's debt is expected
to total approximately US$45 billion (including US$8.4 billion
issued as part of the UAW VEBA trust agreement that will not
appear on GM's balance sheet until 2010), up more than US$32
billion since yearend 2002, despite a healthy level of asset
sales.  This figure may increase as GM seeks additional
financing opportunities to sustain liquidity.  Interest expense
will represent an increasing claim on cash flows in 2008 and
2009, while declining income from GM's shrinking cash and
securities portfolio will provide less of an offset.  GM's loss
of market share and sale of assets (GMAC, Allison Transmission)
also provide a reduced earnings base with which to meet future
debt obligations.  As a result, Fitch does not expect GM to be
in a position to reduce debt obligations over the next three
years.  GM retains access to approximately US$7 billion in
committed credit lines in the U.S.

Although GM has a manageable maturity schedule over the next
several years, repayment of maturities from cash holdings would
accelerate the expected decline in liquidity.  Given the
existing state of the capital markets, GM may have limited
access to external capital for refinancing purposes.  The recent
change to the VEBA funding plan, replacing US$4 billion in cash
with US$4 billion in a two-year note, will provide a helpful,
but temporary boost to liquidity.  In the absence of a rebound
in second-half economic conditions or access to additional
capital, Fitch projects that liquidity could drop below US$20
billion within the next year.  Upon a rebound in the U.S.
housing market, contribution margins will benefit from improved
volume and margins in the key pickup truck market.

Fitch forecasts that GM's projected cost savings from the 2007
UAW agreement will be insufficient to reverse consolidated
negative cash flows through 2009 without revenue stabilization.  
Given weak economic conditions, this is not projected to occur
in 2008.  Despite a string of recent successful product
offerings, the decline in the remainder of GM's product
portfolio has prevented consolidated improvement.  Over the near
term, GM's North American strategy currently relies on replacing
uncompetitive products with newly competitive products, which
will be a severe challenge as GM struggles to find niches for a
number of overlapping products and brands.

Fitch expects that GM will have to make meaningful reductions in
brand/product/segment offerings over the intermediate term.  
Accordingly, Fitch expects that GM could close an additional 3-4
assembly plants.

Shareholder considerations may also encourage a reduction in
exposure to the U.S. market, potentially allowing the company's
stronger, higher growth international operations to represent a
more material component of GM's consolidated valuation.

Commodity prices will continue to hurt GM's margins, although
the rate of increase is likely to slow in comparison to 2007,
allowing more of the company's manufacturing efficiencies to
benefit margin performance.  However, GM is likely to face
escalating costs and required financial support for second and
third-tier suppliers that will continue to face bankruptcy (and
potential liquidation) from lower Detroit Three production and
lack of access to capital.

GM's international operations have transitioned into a material
positive factor for the ratings.  The company's growth in China,
Latin America and a number of developing markets provide an
increasing offset to the company's North American operations,
but also are now producing free cash flow that can be applied to
consolidated debt or restructuring obligations.  However, the
4th quarter loss in GM's European operations and the
extraordinary profitability that the industry has enjoyed in
Latin America question the sustainability of 2007 results into
2008.

These events could result in a downgrade of GM:

   -- Consolidated cash drains in excess of US$8 billion, which
      results in liquidity dropping below US$20 billion;

   -- Lack of progress in reducing fixed costs, combined with
      a reduction in international profitability;

   -- Double-digit production cuts in North America throughout   
      2008 resulting from a more severe decline in economic
      conditions or a deterioration in GM's product  
      competitiveness.

Attempts to resolve the Delphi situation have become
increasingly extended and expensive to GM.  GM took an
additional US$1.5 billion in reserves in 2007, and will continue
to incur expenses over the medium term.  With Delphi currently
unable to raise the financing required to exit bankruptcy, the
situation remains highly uncertain.  An extended stay in
bankruptcy and increasing costs accruing to GM could result in
the event that the agreement with Apaloosa is unable to be
closed.  Although resolution of GM's price penalty to Delphi
represents an opportunity for further cost reductions over the
intermediate term, Delphi will remain a meaningful competitive
disadvantage.

Deteriorating performance at GMAC has materially reduced
estimated recovery valuations from this asset.  Fitch does not
expect that GM will provide additional capital to support GMAC's
ResCap operations, given GM's liquidity position and its primary
focus on GMAC's auto finance operations.  Any additional capital
contributed to GMAC by GM would be viewed as a negative.  Fitch
remains concerned about asset quality deterioration, funding
costs and ABS market conditions at GMAC and the industry in
2008.

Recovery ratings remain in the same category, although projected
recovery valuations have moved modestly lower.  Negative
movements include a significant deterioration in the asset value
of GM's 49% stake in GMAC, and higher debt levels, which are
offset by increased valuations for the company's international
holdings in Latin America and Asia (primarily China).

Fitch has affirmed these ratings:

   * General Motors

     -- IDR at 'B';
     -- Senior unsecured debt at 'B-/RR5'
     -- Senior Secured at 'BB/RR1'.

   * General Motors of Canada

     -- IDR at 'B';
     -- Senior unsecured at 'B-/RR5'.

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, including the United Kingdom, Germany,
France, Russia, Brazil and India.  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.


GOL LINHAS: Unit Signs Interline Agreement With KLM Royal Dutch
---------------------------------------------------------------
GOL Linhas Aereas Inteligentes S.A., the parent company of
Brazilian airlines GOL Transportes Aereos S.A. and VRG Linhas
Aereas S.A., has reported an interline agreement between VRG
Linhas and the Netherlands' KLM Royal Dutch Airlines.  Beginning
this month, passengers of both airlines can purchase tickets to
all destinations served by VRG Linhas and KLM Royal.

"The interline with KLM will provide our passengers with access
to destinations in Europe currently outside of VRG's route
network," says VRG Linhas commercial director, Lincoln Amano.

Since September 2007, VRG Linhas participated in MITA
(Multilateral Interline Traffic Agreement), an IATA network of
airlines from around the world.  All MITA members have the
option to enter interline agreements with other member airlines.

Passengers traveling under the Smiles frequent flier program can
only accumulate miles on flights operated by VRG Linhas Aereas
SA.

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

                         *     *     *

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


GRAPHIC PACKAGING: Reports US$0.7 Mln Net Loss for 2007 4th Qtr.
----------------------------------------------------------------
Graphic Packaging Corporation reported net loss for fourth
quarter 2007 ended Dec. 31 was US$0.7 million.  This compares to
a fourth quarter 2006 net loss of US$35.9 million.

Net Loss in the fourth quarter 2007 was positively impacted by
an impairment adjustment of US$6.6 million for the non-cash
currency translation adjustments related to the sale of the
company's operations in Sweden.

Net sales in the fourth quarter of US$601.9 million, an increase
of 6.4% over the same period last year of US$565.7 million.  
Loss from continuing operations was US$7.1 million compared to a
loss from continuing operations of US$34.0 million in the fourth
quarter of 2006.
   
For the full year 2007 ended Dec. 31, net loss was US$74.6
million.  This compares to a 2006 net loss of US$100.5 million.  
Net Loss in 2007 was negatively impacted by an US$18.6 million
non-cash impairment charge to the company's operations in
Sweden.

Net sales increased 6.4% to US$601.9 million during fourth
quarter 2007, compared to fourth quarter 2006 net sales of
US$565.7 million.  Full year 2007 net sales were US$2,421.2
million, 4.3% higher than 2006 net sales of US$2,321.7 million.

Net interest expense was US$40.3 million for fourth quarter
2007, as compared to net interest expense of US$44.0 million for
fourth quarter 2006.  For the full year 2007, net interest
expense was US$167.8 million compared to US$171.4 in 2006.  The
decrease was primarily due to lower interest rates resulting
from the second quarter 2007 refinancing of the Company's senior
secured credit facility.
   
During the fourth quarter of 2007, the company's total debt
decreased by US$71.3 million to US$1,878.4 million, as compared
to US$1,949.7 million at the end of the third quarter.  Full
year debt reduction for 2007 was US$44.3 million.  The company
contributed US$3.4 million to its U.S. pension plans in the
fourth quarter and US$24.9 million for the full year 2007.
   
The company incurred US$4.8 million of income tax expense in the
fourth quarter, primarily related to a non-cash expense
associated with the amortization of goodwill for tax purposes.  
The company has a US$1.4 billion net operating loss that is
available to offset future taxable income in the United States.    

Capital expenditures for fourth quarter 2007 were US$34.3
million compared to US$30.7 million in the fourth quarter of
2006.  For the full year 2007, capital expenditures were US$95.9
million compared to US$94.5 million in 2006.
   
"I'm extremely pleased with fourth quarter results, particularly
the strong growth in the top line," David W. Scheible, president
and chief executive officer, said.  "The approximate six-and-
half percent increase in net sales represents the largest
quarter over prior-year quarter increase since the merger that
formed the Company in 2003."
   
"Although we are still being negatively impacted by higher input
costs, we were able to more than offset both fourth quarter and
full year cost inflation through a combination of increased
pricing and our ongoing cost cutting programs," Mr. Scheible
added.  "Specifically, we took another US$12 million of costs
out of the system this quarter, bringing full year 2007 benefits
from our continuous improvement efforts to approximately US$46
million."

At Dec. 31, 2007, the company's balance sheet reflected total
assets of US$3.1 billion, total liabilities of US$2.9 billion
and a total shareholders' equity of US$100,000,000.

                     About Graphic Packaging

Headquartered in Marietta, Georgia, Graphic Packaging
Corporation (NYSE:GPK) -- http://www.graphicpackaging.com/-- is  
a provides paperboard packaging solutions for a variety of
products to multinational and other consumer products companies.  
The company provides its customers paperboard, cartons and
packaging machines, either as an integrated solution or
separately.  Its packaging products are made from a variety of
grades of paperboard.  GPC manufactures its packaging products
from coated unbleached kraft paperboard and coated recycled
paperboard that it produces at its mills, and a portion from
paperboard purchased from external sources.  The company
operates in four geographic areas: the United States, Central
and South America (Brazil) , Europe and Asia-Pacific.   GPC
conducts its business in two segments, paperboard packaging and
containerboard/other.

                         *     *     *

In April 2007, Fitch Ratings assigned a 'BB-' rating on Graphic
Packaging Corp.'s bank loan debt rating with a stable outlook.
This rating action still holds to date.


GREIF INC: Books 60.7-Million Net Income in Qtr. Ended Jan. 31
--------------------------------------------------------------
Greif, Inc., repored its results for the first fiscal quarter,
which ended Jan. 31, 2008.

                           Highlights:

    -- Net sales increased 13 percent (7 percent excluding the
       impact of foreign currency translation) to US$846.3
       million in the first quarter of 2008 from US$750.8
       million in the first quarter of 2007.

    -- Net income before special items was US$68.6 million in
       the first quarter of 2008 compared to US$35.5 million in
       the first quarter of 2007.  GAAP net income was US$60.7
       million and US$34 million in the first quarter of 2008
       and 2007, respectively.  During the first quarter of
       2008, the company recognized a net gain of US$20.9
       million related to the divestiture of business units in
       Australia and Zimbabwe, which is included in both net
       income before special items and GAAP net income.

Chairperson and chief executive officer, Michael J. Gasser said,
"The first quarter results demonstrate the benefits of
geographic diversity, positive contributions from the Greif
Business System and ongoing initiatives to unlock value within
our businesses.  We achieved solid organic sales growth,
especially in Europe and the emerging markets for Industrial
Packaging, and benefited from higher containerboard selling
prices in Paper Packaging.  The Greif Business System continues
to improve our performance and helps mitigate the impact of
higher costs.

"During the first quarter, we continued to execute our "GBS +
Growth" strategy and actively manage our business portfolio.  
Consistent with this strategy, we have added seven plants since
the end of fiscal 2007, including five in emerging markets.  
Additionally, five plants in Australia and Zimbabwe that were
underperforming and no longer fit our business strategy were
divested." Mr. Gasser added.

       Special Items and GAAP to Non-GAAP Reconciliation

Special items are: (i) for the first quarter of 2008,
restructuring charges of US$10.5 million (US$8 million net of
tax) and timberland disposals, net of US$0.1 million; and (ii)
for first quarter of 2007, restructuring charges of US$2 million
(US$1.5 million net of tax).  A reconciliation of the
differences between all non-GAAP financial measures used in this
release with the most directly comparable GAAP financial
measures is included in the financial schedules that are a part
of this release.

                     Consolidated Results

Net sales increased 13 percent (7 percent excluding the impact
of foreign currency translation) to US$846.3 million in the
first quarter of 2008 compared to US$750.8 million in the first
quarter of 2007.  The US$95.5 million increase is due to
Industrial Packaging (US$78.9 million), Paper Packaging (US$14.6
million) and Timber (US$2 million).  Higher sales volumes
primarily drove the 7 percent constant-currency increase.

Operating profit before special items was US$104.6 million for
the first quarter of 2008 compared to US$60.6 million for the
first quarter of 2007.  The US$44 million increase included a
US$29.9 million pre-tax net gain on the divestiture of business
units in Australia and Zimbabwe.  The remaining US$14.1 million
increase was principally due to higher operating profit in
Industrial Packaging (US$11.3 million) and Paper Packaging
(US$3.2 million).  This increase was attributable to a modest
improvement in gross profit margin and a reduction in the
selling, general and administrative expenses to net sales ratio
compared to the same period last year.  GAAP operating profit
was US$94.2 million and US$58.6 million in the first quarter of
2008 and 2007, respectively.

Net income before special items increased 93 percent to US$68.6
million for the first quarter of 2008 compared to US$35.5
million for the first quarter of 2007.  Diluted earnings per
share before special items were US$1.16 compared to US$0.60 per
Class A share and US$1.76 compared to US$0.92 per Class B share
for the first quarter of 2008 and 2007, respectively.  The
company had GAAP net income of US$60.7 million in the first
quarter of 2008 compared to GAAP net income of US$34 million, in
the first quarter of 2007.  Included in both the first quarter
2008 net income before special items and GAAP net income is a
US$20.9 million after-tax net gain related to the divestiture of
business units in Australia and Zimbabwe.

                    Business Group Results

Industrial Packaging net sales were up 13 percent to US$671.3
million in the first quarter of 2008 from US$592.4 million in
the first quarter of 2007 -- an increase of 5 percent excluding
the impact of foreign currency translation. Higher sales volumes
in most regions, with particular strength in Europe and the
emerging markets, drove the segment's organic growth.  Gross
profit margin was 16.8 percent in the first quarter of 2008
versus 16.6 percent in the first quarter of 2007.  Operating
profit before special items increased to US$78.1 million in the
first quarter of 2008 from US$36.9 million in the first quarter
of 2007.  The increase included a US$29.9 million net gain on
the divestiture of business units in Australia and Zimbabwe.  
The remaining increase was primarily due to improvement in net
sales volumes and execution of the Greif Business System.  GAAP
operating profit was US$68.6 million in the first quarter of
2008 compared to US$35.7 million in the first quarter of 2007.

Paper Packaging net sales were US$168.8 million in the first
quarter of 2008 compared to US$154.2 million in the first
quarter of 2007.  This was principally due to higher
containerboard selling prices implemented during the fourth
quarter of fiscal 2007.  The Paper Packaging segment's gross
profit margin increased to 19.6 percent for the first quarter of
2008 from 19.4 percent for the first quarter of 2007. Operating
profit before special items increased to US$20.4 million in the
first quarter of 2008 compared to US$17.2 million in the first
quarter of 2007.  Higher raw material costs, especially old
corrugated containers, were more than offset by higher selling
prices and contributions from further execution of the Greif
Business System. GAAP operating profit was US$19.4 million and
US$16.4 million in the first quarter of 2008 and 2007,
respectively.

Timber net sales were US$6.2 million and US$4.2 million in the
first quarter of 2008 and 2007, respectively.  Operating profit
before special items was US$6.1 million in the first quarter of
2008 compared to US$6.5 million in the first quarter of 2007.  
Included in these amounts were profits from the sale of special
use properties of US$3.8 million in the first quarter of 2008
and US$4.7 million in the first quarter of 2007.  GAAP operating
profit was US$6.2 million and US$6.5 million in the first
quarter of 2008 and 2007, respectively.

                   Other Cash Flow Information

During the first quarter of 2008, the company acquired two small
packaging businesses located in the United States and Brazil.  
The outflow of funds related to the purchase price for these
acquisitions was partially offset by the receipt of proceeds
from the divestiture of business units in Australia and
Zimbabwe.

Capital expenditures were US$29.5 million, excluding timberland
purchases of US$0.5 million, for the first quarter of 2008
compared with capital expenditures of US$18.6 million, excluding
timberland purchases of US$0.4 million, for the first quarter of
2007.  Fiscal 2008 capital expenditures are expected to be
approximately US$125 million, excluding timberland purchases,
which includes expansion capital to support the company's growth
strategy in the emerging markets.

On Feb. 25, 2008, the Board of Directors declared quarterly cash
dividends of US$0.28 per share of Class A Common Stock and
US$0.42 per share of Class B Common Stock.  These dividends,
payable on April 1, 2008 to stockholders of record at close of
business on March 17, 2008, are approximately 50 percent above
the amount paid for the same period a year ago.

In addition to acquisitions, capital expenditures and dividends,
the company's debt increased due to seasonal factors,
acceleration of inventory purchases in response to rising raw
material costs, and the payment of fiscal 2007 performance-based
incentives during the first quarter of 2008.

                        Company Outlook

The company is encouraged by its first quarter results and
positive business momentum as it exited the quarter.  Price
increases were announced during the first quarter in response to
rising raw material costs, particularly for steel and plastic
products, and the company is addressing transportation and
energy costs through the Greif Business System.

The company's 2008 guidance is being reaffirmed and adjusted
upward to US$4.15 to US$4.35 per Class A share to reflect the
US$0.35 impact from the net gain related to the divestiture of
businesses.  It is the company's expectation that the full-year
results will be at the upper end of the adjusted range.

                        About Greif Inc.

Headquartered in Delaware, Ohio, Greif, Incorporated, (NYSE:
GEF, GEF.B) -- http://www.greif.com/-- is a world leader in  
industrial packaging products and services.  The company
provides extensive expertise in steel, plastic, fibre,
corrugated and multi-wall containers for a wide range of
industries.  Greif also produces containerboard and manages
timber properties in the United States.  For fiscal year 2006,
the company generated approximately US$2.6 billion in net sales
and US$326 million in EBITDA.  The company has operations in
Australia, Argentina, Brazil, Belgium, China, Malaysia, among
others.

                          *     *     *

On Nov. 14, 2007, Moody's affirmed the company's Corporate
Family Rating at Ba1; Senior Unsecured at Ba2; and Speculative
Grade Liquidity of SGL-1 with stable rating outlook.


HERCULES INC: Appoints Allan H. Cohen to Board of Directors
-----------------------------------------------------------
The board of directors of Hercules Incorporated elected Allan H.
Cohen, Ph.D. to the Hercules board of directors effective
immediately.  With his election, the Hercules board has expanded
from nine to ten members.

Until August 2007, Dr. Cohen was a managing director with First
Analysis Corporation, a research driven investment organization,
where he was employed for fifteen years.  During his career, he
has held executive and senior management positions at The
Valspar Corporation and The Enterprise Companies, a unit of
Insilco, and planning and chemical research management positions
with The Sherwin-Williams Company and Champion International
Corp.  Dr. Cohen also serves on the boards of directors of
Intertape Polymer Group Inc., Doe and Ingalls Management LLC,
and IGI Holding Corporation.

The board of directors also declared a quarterly cash dividend
of five cents per common share, payable on April 18, 2008, to
shareholders of record at the close of business on March 28,
2008.

Hercules will hold its Annual Meeting of Shareholders on
Thursday, April 17, 2008, at its corporate headquarters in
Wilmington, Delaware.  Shareholders of record on March 3, 2008,
will be entitled to vote at the Annual Meeting.

                        About Hercules Inc

Headquartered in Wilmington, Delaware, Hercules Inc. (NYSE:HPC)
-- http://www.herc.com/-- manufactures and markets chemical
specialties globally for making a variety of products for home,
office and industrial markets.  The company has its regional
headquarters in China and Switzerland, and a production facility
in Brazil.

                     *     *     *

Moody's Investor Service placed the company's long-term
corporate family rating, senior unsecured debt rating and
probability of default rating at Ba2, senior subordinate rating
at Ba3, and junior subordinate debt rating at B1 in September
2006.  The ratings still hold to date with a positive outlook.


JETBLUE AIRWAYS: Eyes Airline Launch in Brazil
----------------------------------------------
JetBlue Airways Inc. founder and chairman David Neeleman has
showed interest of opening a new domestic airline in Brazil but
no formal proposal nor conclusion has been made, The Associated
Press reports.

According to the report, Mr. Neeleman is in talks with aviation
director Solange Paiva Vieira in Brasilia for the possible new
air carrier launching.

The report adds that Mr. Neeleman's interest in launching an
airline has been reported by Brazilian media in recent weeks,
however, he has not made any public comments on his plans.

Mr. Neeleman has invested about US$200 million (EUR135 million)
and proposed to purchase 36 mid-range jets from Brazilian
airplane manufacturer Embraer, the O Estado de S. Paulo
newspaper reported.

The report shows that after the collapse of Brazil's former
flagship carrier Varig under massive debt, a Brazilian airline
would be the first major competition in years for local market
leaders TAM Linhas Aereas SA and Gol Linhas Aereas Inteligentes
SA.

                About JetBlue Airways Corporation

Based in Forest Hills, New York, JetBlue Airways Corporation
(Nasdaq:JBLU) --  http://www.jetblue.com/-- is a passenger
airline that provides customer service on point-to-point routes.
As of Feb. 14, 2007, JetBlue operated approximately 502 daily
flights.  The company serves 50 destinations in 21 states,
Puerto Rico, Mexico and the Caribbean.  The company operates a
fleet of 98 Airbus A320 and 23 Embraer 190 aircrafts.  The
company's operations primarily consists of transporting
passengers on its aircraft, with domestic United States
operations, including Puerto Rico, accounting for approximately
97.1% of its capacity during the year ended Dec. 31, 2006.

                          *     *     *

Moody's Investor Service placed JetBlue Airways Corporation's
long-term corporate family and probability rating at 'B3' and
its senior unsecured debt rating at 'Caa2' in May 2007.  The
ratings still hold to date with a negative outlook.


KENDLE INT'L: Net Income Increases to US$18.7 Million in 2007
-------------------------------------------------------------
Kendle reported financial results for the fourth quarter and
full year ended Dec. 31, 2007.

Net service revenues for fourth quarter 2007 were approximately
US$104.3 million, an increase of 21 percent over net service
revenues of approximately US$86.4 million for fourth quarter
2006.

Income from operations for fourth quarter 2007 was approximately
US$15.2 million, or 14.6 percent of net service revenues,
compared to a loss of approximately US$1.8 million in fourth
quarter 2006.  Net income was approximately US$6.4 million in
fourth quarter 2007 compared to a loss of US$4.7 million in the
fourth quarter of 2006.  Net service revenues by geographic
region for the fourth quarter of 2007 were 50 percent in North
America, 40 percent in Europe, 6 percent in Latin America and 4
percent in the Asia/Pacific region.  The top five customers
based on net service revenues accounted for 29 percent of net
service revenues for fourth quarter 2007 compared to 26 percent
of net service revenues for fourth quarter 2006.

New business awards were US$174 million for fourth quarter 2007,
which represents a 6 percent increase over the same quarter last
year.  Contract cancellations for the quarter were approximately
US$32 million.  Total business authorizations amounted to US$869
million at Dec. 31, 2007, up 5 percent from Sept. 30, 2007, and
an all-time company high.

"2007 was a year of significant growth for Kendle highlighted by
record backlog and a strong increase in revenues and operating
margin," said Chairperson and Chief Executive Officer, Candace
Kendle, PharmD.  "Demonstrating our continued focus on project
delivery and operational excellence in support of our customers'
clinical development goals, we grew above the market for the
fourth consecutive year.  In particular, our increased scale and
competitiveness in winning and executing megatrials was a
significant contributor to our success and positions us well to
deliver improved earnings and profitability for our shareholders
as we move forward."

Reimbursable out-of-pocket revenues and expenses were
approximately US$50.4 million for fourth quarter 2007 compared
to approximately US$31.7 million in the same quarter a year ago.

Cash flow from operations for fourth quarter of 2007 was
approximately US$23.8 million compared with US$462,000 for the
same period of the prior year. Cash and marketable securities at
Dec. 31, 2007 totaled approximately US$46.4 million, including
US$844,000 of restricted cash, compared with US$22.3 million,
which included US$2.4 million of restricted cash, at Dec. 31,
2006.  Days sales outstanding in accounts receivable were 33
days for fourth quarter 2007, compared with 46 days for the same
period of the prior year, and capital expenditures for fourth
quarter 2007 totaled US$5.4 million, compared with US$2.7
million for the same period of the prior year.

                       Full Year Results

Net service revenues for the year ended Dec. 31, 2007, were
approximately US$397.6 million, an increase of 40 percent over
net service revenues of US$283.5 million for the year ended Dec.
31, 2006.  Interest expense in the year ended Dec. 31, 2007, was
approximately US$14.9 million, primarily related to debt
incurred to finance the CRLCS acquisition, compared to interest
expense of approximately US$6.8 million in the year 2006.

Income from operations for the year ended Dec. 31, 2007, was
approximately US$52.8 million, or 13.3 percent of net service
revenues, compared with US$20 million or 7.1 percent of net
service revenues for the same period of the prior year.
Excluding the amortization charge referenced previously,
proforma income from operations for the year ended Dec. 31, 2007
was approximately US$57 million or 14.3 percent of net service
revenues.  Excluding the amortization charge, acquisition-
related expenses and the intangible impairment charge referenced
previously, in the year ended Dec. 31, 2006, proforma income
from operations was US$31.7 million, or 11.2 percent of net
service revenues.  Net income for the year 2007 was
approximately US$18.7 million compared to net income of
approximately US$8.5 million in the year 2006.  Excluding the
amortization of acquired intangibles and the write-off of
deferred financing costs, net income for the year 2007 was
approximately US$24 million.  Excluding the amortization of
acquired intangibles, acquisition-related expenses and
intangible impairment charge in 2006, net income was
approximately US$15.9 million.

Net service revenues by geographic region for the year ended
Dec. 31, 2007, were 50 percent in North America, 42 percent in
Europe, 5 percent in Latin America and 3 percent in the
Asia/Pacific region.  The top five customers based on net
service revenues accounted for 25 percent of net service
revenues for the year 2007 compared to 28 percent of net service
revenues for the year 2006.

Cash flow from operations for the year ended Dec. 31, 2007, was
US$61.9 million, compared with a positive US$17.6 million for
the same period of 2006.  Capital expenditures for the 12-month
period ended Dec. 31, 2007 totaled US$16.2 million, compared
with US$8.8 million for the 12-month period in 2006.

                        2008 Guidance

For the full year 2008, the company is projecting net service
revenues in the range of US$450 to US$460 million and earnings
per share on a GAAP basis of US$1.90 to US$2.07.

                        About Kendle

Based in Cincinnati, Kendle International Inc. (Nasdaq: KNDL) --
http://www.kendle.com/-- is a clinical research organization  
which provides Phase II-IV clinical development services
worldwide.  The company's global clinical development business
is focused on five regions - North America, Europe,
Asia/Pacific, Africa and Latin America including Brazil.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Dec. 14, 2007, Standard & Poor's Rating Services revised its
outlook on Kendle International Inc. to positive from stable.  
S&P also revised its issue rating on the company's amended
US$53.5 million revolver to 'BB' with a recovery rating of '1',
indicating the expectation of very high (90%-100%) recovery of
principal in the event of default.  At the same time, S&P
affirmed all existing ratings, including its 'B+' corporate
credit rating, on the company.


NOVELL INC: To Acquire PlateSpin for US$205 Million
---------------------------------------------------
Novell Inc. entered into a definitive agreement to acquire
PlateSpin Ltd. for US$205 million.  The acquisition will extend
Novell's leadership position in the next-generation data center
by providing the only solution to dynamically deliver business
critical services across both physical and virtual
infrastructures.

PlateSpin offers extensive solutions for the management of
heterogeneous workloads that encapsulate data, applications and
operating systems residing on a physical or virtual host.  These
solutions improve the speed and quality of server consolidation,
data center relocation and disaster recovery.  Novell and
PlateSpin will deliver unparalleled support for mixed
infrastructure environments offering products for complete
workload lifecycle management and optimization for Linux, UNIX
and Windows operating systems in the physical and virtual data
center.  The combined solutions will deliver superior value by
helping customers reduce costs, improve service levels and
respond to fluctuating business requirements.

"Flexible, automated management products that fully leverage
server resources and allow the movement of workloads are
necessary for optimizing the data center," said Stephen Elliot,
research director, Enterprise Systems Management Software and
ITMS at IDC.  "Over the next three years, heterogeneous
virtualization architectures will be the norm for most IT
organizations; as such they must purchase data center management
solutions that offer an ongoing opportunity for lowering
operational costs as well as integrating and managing VMs across
both server and storage infrastructures for greater control and
visibility between hardware and the virtual software tiers."

"The PlateSpin acquisition will be a cornerstone of our two-
pronged enterprise Linux and IT management software strategy,"
Ron Hovsepian, president and CEO of Novell, said.  "With the
addition of the PlateSpin product portfolio, Novell will be
uniquely positioned to deliver the next generation
infrastructure software that is at the core of the data center.  
Together, we will have the most comprehensive workload
management solution that allows customers to monitor and analyze
what to virtualize, provide the tools to seamlessly virtualize
and unvirtualize workloads, automate the management of
workloads, and provide the leading open source platform from
which to run virtualized work."

"PlateSpin's ability to manage workloads is unparalleled and is
an essential part of making the data center truly respond to the
needs of the business," Stephen Pollack, founder and CEO of
PlateSpin, said.  "Combined with ZENworks Orchestrator and
virtualization from Novell, we are very excited about the
synergies that this acquisition will give to customers."

                         Financial Overview

Novell will acquire PlateSpin for US$205 million using current
cash.  The acquisition is expected to close during Novell's
second fiscal quarter 2008 subject to the satisfaction of
closing conditions.  PlateSpin will be integrated into Novell's
Systems and Resource Management business unit.  As part of this
business unit, PlateSpin will continue to develop and market its
solutions to a global customer base.  This will be done through
the continued operation of PlateSpin's Toronto facility as well
as through a combination of PlateSpin and Novell offices and
facilities around the globe.

                       About Novell Inc.

Headquartered in Waltham, Massachusetts, Novell Inc. (Nasdaq:
NOVL) -- http://www.novell.com/-- delivers infrastructure
software for the Open Enterprise.  Novell provides desktop to
data center operating systems based on Linux and the software
required to secure and manage mixed IT environments.

The company has offices in Australia, Argentina, Austria,
Belgium, Brazil, China, Czech Republic, Finland, Germany, Hong
Kong, Hungary, India, Ireland, Japan, Luxembourg, Malaysia,
Netherlands, New Zealand, Norway, Philippines, Poland,
Singapore, South Korea, Spain, Sweden, Switzerland, Taiwan,
Thailand and United Kingdom.

                          *     *     *

Novell Inc.'s subordinated debt carries Moody's Investors
Service's B1 rating.


PETROLEO BRASILEIRO: Extends Contract With Pride
------------------------------------------------
Pride International Inc. has been awarded contract extensions
from Petroleo Brasileiro S.A. for the deepwater, dynamically
positioned semisubmersible rigs Pride Rio de Janeiro and Pride
Portland.

The contract extensions, representing six years per rig, are
expected to commence during late 2010 to early 2011, in direct
continuation of each rig's current contract commitment and a
scheduled shipyard program to complete a regulatory survey.  
Estimated contract revenues which could be generated from
each six-year contract extension are approximately US$768
million, inclusive of a performance bonus opportunity for each
rig of up to 15 percent, or approximately US$1.5 billion in
total revenues.  The contract extensions also provide for a cost
escalation provision from the signing date through the six-year
term.

Louis A. Raspino, President and Chief Executive Officer of Pride
International Inc., commented, "The extensions of these two
dynamically positioned, deepwater semisubmersibles through 2016
are further evidence of the continuing need by clients for
deepwater rigs and reflect the long-term nature of the present
deepwater drilling cycle.  With these extensions, Pride will
remain one of the largest contractors of floating rigs to
Petrobras in support of their exploration and development
drilling needs.  Accordingly, our company is in an advantageous
position to potentially benefit from additional deepwater rig
requirements for Petrobras in Brazil, as well as in their
international deepwater operations."

As previously disclosed, consideration received under the
contract extensions will be subject to an earn-out provision
with the company's previous joint venture partner.  The company
expected payments, if any, under the earn-out provision to be
less then US$10,000 per day, per rig over the term of the
contract extensions, which would be capitalized as additional
purchase price.

The Pride Rio de Janeiro and Pride Portland are two of eight
deepwater rigs currently in the Pride International fleet, six
of which are dynamically positioned deepwater rigs. The two
semisubmersibles have operated offshore Brazil for Petrobras
since entering service in 2004.  Both units are expected to
continue operations offshore Brazil throughout the extension
period.

                    About Pride International

Headquartered in Houston, Texas, Pride International Inc.
(NYSE: PDE) -- http://www.prideinternational.com/-- provides
onshore and offshore contract drilling and related services in
more than 25 countries, operating a diverse fleet of 277 rigs,
including two ultra-deepwater drillships, 12 semisubmersible
rigs, 28 jackups, 16 tender-assisted, barge and platform rigs,
and 214 land rigs.  The company maintains worldwide operations
in France, Mexico, Kazakhstan, India, and Brazil, among others.

                         About Petrobras

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

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
May 14, 2007, Fitch Ratings upgraded Brazil's long-term foreign
and local currency sovereign Issuer Default Ratings to 'BB+'
from 'BB' and the Country Ceiling to 'BBB-' from 'BB+'.  In
addition, Fitch affirmed Brazil's Short-term IDR at 'B'.  Fitch
said the rating outlook is stable.


SHARPER IMAGE: Trustee Appoints Unsecured Creditors Committee
-------------------------------------------------------------
Kelly Beaudin Stapleton, the United States Trustee for Region 3,
appoints seven members to the Official Committee of Unsecured
Creditors of the Chapter 11 case of Sharper Image Corporation.

   1. Dixie M. Garner
      c/o Stephen J. Rowe, Esq.
      Birmingham, Alabama
      Tel No.: 205-581-0700
      Fax No.: 205-581-0799

   2. Simon Property Group, Inc.
      Attn: Ronald M. Tucker
      Indianapolis, Indiana
      Tel No.: 317-263-2346
      Fax No.: 317-263-7901

   3. United Parcel Service
      Attn: Steven Sass
      Hunt Valley, Maryland
      Tel No.: 410-773-4040
      Fax No.: 410-773-4057

   4. TomTom, Inc.
      Attn: Quentin Fendelet
      Concord, Massachusetts
      Tel No.: 978-405-1668
      Fax No.: 978-287-9522

   5. Quebecor World (USA) Inc.
      Attn: Jacqueline De Buck
      Montreal, Quebec, Canada
      Tel No.: 514-877-5135
      Fax No.: 514-648-4046

   6. Ion Audio, LLC
      Attn: Paul J. Stansky
      Cumberland, Rhode Island
      Tel No.: 401-658-3131 ext. 205
      Fax No.: 401-658-3640

   7. General Growth Properties, Inc.
      Attn: Julie Minnick Bowden
      Chicago, Illinois