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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

            Monday, March 3, 2008, Vol. 9, No. 44

                            Headlines


A R G E N T I N A

AIMPO SRL: Proofs of Claim Verification Deadline Is April 14
BANCO HIPOTECARIO: To Settle Tendered Eligible Notes Today
BIOMET INC: Taps Jon Serbousek as President for Orthopedics Unit
FIAT SPA: India Plant to Start Linea Line Production in August
GRUPO ASISTENCIAL: Proofs of Claim Verification Is Until May 9

MUNISTAR ARGENTINA: Claims Verification Is Until April 21
NUEVO BANCO INDUSTRIAL: Will Launch IPO This Year
OLD VETIKAR: Proofs of Claim Verification Deadline Is April 28


B A H A M A S

CENVEO INC: Delay in 10-K Filing Won't Affect Rating, S&P Says


B E R M U D A

ANNUITY & LIFE: Settles Dispute With Transamerica for US$3 Mil.


B O L I V I A

COEUR D'ALENE: Discloses 2007 Exploration Program Results


B R A Z I L

BANCO NACIONAL: Increases Infrastructure Funds to BRL25.8 Bil.
BANCO NACIONAL: Delivers Two Trucks & 30 Trolleys to Cortrap
COMPANHIA ENERGETICA: Energias Wants to Join Consortium
DELPHI CORP: Shareholder Settlement Hearing Set for April 29
ENERGIAS DO BRASIL: Inks Bridge Loan Contracts With Citibank

ENERGIAS DO BRASIL: Wants to Join Group to Bid for Energetica
FORD MOTOR: Navistar Re-Files Breach of Contract Suit
FURNAS CENTRAIS: Wants Partner to Bid for Transmission Lines
GENERAL MOTORS: Idles Assembly Plant Due to AAM Workers' Strike
GENERAL MOTORS: Supplier's Workers Strike Won't Affect S&P Rtg.

INTELSAT LTD: ViewAfrica Extends Contract to Up Channel Offering
MILACRON INC: Dec. 31 Balance Sheet Upside-Down by US$51.1 Mil.
NAVISTAR INTERNATIONAL: Re-Files Breach of Contract Suit vs Ford
NORTEL NETWORKS: Posts $844 Mil. Net Loss in Fourth Quarter 2007
TELE NORTE: Earns BRL2.36 Billion in 2007


C A Y M A N  I S L A N D S

ATLAS CAPITAL: Sets Final Shareholders' Meeting for March 7
DIAMOND REIT: Will Hold Final Shareholders' Meeting on March 10
HONJO GLOBAL: Proofs of Claim Filing Deadline Is March 8
MORLEY BALANCED: Proofs of Claim Filing Ends on March 10
PRAIRIE FUTURES: Proofs of Claim Filing Is Until March 8

SCOTTISH RE: A.M. Best Chips Issuer Credit Rtg. to bb from bbb-


C H I L E

FIDELITY NATIONAL: Earns US$108 Mil. in Quarter Ended Dec. 31
FIDELITY NATIONAL: Sells Certegy Gaming to Global Cash Access
SHAW GROUP: Unit to Provide Engineering Services in India


C O L O M B I A

BANCOLOMBIA SA: Superior Court Annuls Ruling Against Gilinski
SOLUTIA INC: Emerges From Chapter 11 Bankruptcy Protection
SOLUTIA INC: Judge Beatty OKs Bank of New York Settlement Pact
SOLUTIA INC: New Stock to Trade on NYSE Effective March 3


C O S T A  R I C A

ANIXTER INT'L: Robert Grubbs to Quit as CEO Effective June 2008
SIRVA INC: Obtains Court OK for Additional US$10 Mil. DIP Loan


D O M I N I C A N   R E P U B L I C

FREESTAR TECH: Posts US$4.5 Mil. Net Loss in Qtr. Ended Dec. 31


E C U A D O R

PETROECUADOR: Launches 1st Drill Rig With Petroleos de Venezuela
PETROECUADOR: Reaches Oil Contract Agreements With Four Firms


M E X I C O

AXTEL SAB: Will Launch Quadruple Play Services Next Year
BALLY TOTAL: Reaches Settlement With SEC on Fraud Allegations
COTT CORP: In Talks With Wal-Mart on Shelf Space Allocation
COTT CORP: Wal-Mart Negotiations Cue Moody's to Review Ratings
COTT CORP: Unable to Meet Deadline; Delays Filing of Form 10-K

FLEXTRONICS: To Increase Workforce in Hungary by 10%
KANSAS CITY: Sets Annual Stockholders' Meeting for May 1
ALASKA AIRLINES: Appoints Brad Walker As Managing Director
SCIENTIFIC GAMES: 4Q Loss From Mexican Operations is US$2.8MM
SHARPER IMAGE: Court Grants Request to Pay Vendor Obligations

SHARPER IMAGE: Schedules Filing Deadline Extended to April 4


P A N A M A

CABLE & WIRELESS: CitiGroup Seeks Demerger of Two Businesses
CHIQUITA BRANDS: To Hold Annual Shareholders' Meeting on May 22


P U E R T O  R I C O

DIRECTV GROUP: FCC Says Liberty Media Deal Will Benefit Public
DIRECTV GROUP: Stake Swap Results in Two Board Seats for Liberty
MYLAN INC: Books US$1.27-Bil. Loss in Three Mos. Ended Dec. 31
MYLAN INC: J. Dore' Joins as Matrix Labs CEO & Managing Director
MYLAN INC: Forest Labs Will Assume Rights on Hypertension Drug

UNIVISION COMMS: Sells Univision Music Group to Universal Music


V E N E Z U E L A

CHRYSLER LLC: Idles Plant in Ontario Due to TRW's Workers Strike
CHRYSLER LLC: Plastech to Continue Supply Parts Until March 3
PETROLEOS DE VENEZUELA: Launches 1st Drill Rig with Petroecuador
PETROLEOS DE VENEZUELA: Says NB Power's Damage Claim Is Settled


X X X X X X

* S&P Projects Decline in 2008 LatAm & Caribbean Sovereign Debts
* BOND PRICING: For the Week February 25 - February 29, 2008


                         - - - - -


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

AIMPO SRL: Proofs of Claim Verification Deadline Is April 14
------------------------------------------------------------
Miguel Angel Troisi, the court-appointed trustee for Aimpo
S.R.L.'s bankruptcy proceeding, will be verifying creditors'
proofs of claim until April 14, 2008.

Mr. Troisi will present the validated claims in court as
individual reports on May 27, 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 Aimpo 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 Aimpo's accounting
and banking records will be submitted in court on Aug. 27, 2008.

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

The trustee can be reached at:

          Miguel Angel Troisi
          Cerrito 146
          Buenos Aires, Argentina


BANCO HIPOTECARIO: To Settle Tendered Eligible Notes Today
----------------------------------------------------------
Banco Hipotecario S.A.'s cash tender offer to purchase up to
US$56 million aggregate principal amount of its US dollar-
denominated notes due 2013 and up to the equivalent of
US$56 million aggregate principal amount of its EUR-Denominated
Notes due 2013 expired at 11:59 p.m., New York City time, on
Feb. 27, 2008.

Banco Hipotecario received aggregate tenders for a total of USD
equivalent principal amount of US$61,053,602 of Eligible Notes,
consisting of (i) US$16,535,993 aggregate principal amount of
the outstanding USD Long Term Notes and (ii) the equivalent of
US$44,517,609 aggregate principal amount of the outstanding EUR
Long Term Notes (based on the USD/EUR exchange rate published by
the European Central Bank at the close of business on
Feb. 12, 2008).  Banco Hipotecario accepted for payment all of
the Eligible Notes tendered prior to Feb. 27, 2008.  The
settlement of all tendered Eligible Notes is expected to occur
on March 3, 2008.

Banco Hipotecario believes that this transaction reflects its
solvency and financial flexibility to successfully complete
liability management initiatives during a period of volatile
market conditions.

The Tender Offer was made in accordance with the terms and
conditions set forth in Banco Hipotecario's Offer to Purchase
dated Janu. 29, 2008, as supplemented on Feb. 8, 2008, and was
subject to the satisfaction or waiver of certain conditions.

In connection with the Tender Offer, Deutsche Bank Securities
Inc. acted as the Dealer Manager, Deutsche Bank Luxembourg S.A.
acted as the Luxembourg Depository and Global Bondholder
Services Corporation acted as the Information Agent and
Depositary.

Questions may be directed to:

   Deutsche Bank Securities Inc.
   Tel. numbers: (866) 627-0391 (toll free) or
                 (212) 250-2955 (collect)
   Attention: Liability Management Group

Requests for documents should be directed to:

   Information Agent
   Tel. numbers: (866) 873-5600 (toll free) or
                 (212) 430-3774 (collect)

Headquartered in Buenos Aires, Argentina, Banco Hipotecario SA
-- http://www.hipotecario.com.ar-- is a commercial bank that  
accepts deposits and offers retail and commercial banking
services.  The bank offers mortgage, personal and corporate
loans, credit cards and insurance services.  It operates through
a network of 35 branches and 61 service agencies located in
Argentina.  The bank's subsidiaries consist of BHN Sociedad de
Inversion Sociedad Anonima.

                        *     *     *

On Nov. 30, 2007, Moody's Investors Service assigned a bank
financial strength rating of D to Banco Hipotecario S.A, and
global local currency deposit rating of Ba1 to the bank's US$200
million senior unsecured Argentine peso-linked notes, which are
due in 2010.  Moody's outlook on the ratings is stable.


BIOMET INC: Taps Jon Serbousek as President for Orthopedics Unit
----------------------------------------------------------------
Biomet Inc. has appointed Jon Serbousek as President of Biomet
Orthopedics, Inc., effective March 3.  Mr. Serbousek will lead
Biomet's efforts in continuing the success and growth of the
U.S. total joint reconstruction business.

During the past eight years, Mr. Serbousek has held diverse
general management roles with Medtronic in the areas of Spinal
Reconstruction, International, New Technology Development and
most recently, worldwide Vice-President and General Manager,
Biologics.  Prior to Medtronic, Mr. Serbousek spent 13 years
with DePuy, holding positions of Vice President of Marketing and
Product Development Joint Reconstruction, Vice President, Spinal
Operations; Vice President and General Manager, Arthroscopy &
Sports Medicine and a series of Product Development and
Engineering Management positions.

Jeff Binder, Biomet President and CEO, stated, "I have worked
closely with Jon in the past and he fits perfectly with Biomet's
culture and heritage.  He shares our company's commitment to
clinical excellence and innovation, extraordinary service,
personalized patient care and surgeon prominence in the
healthcare system."

"I am very excited about joining the Biomet team," Mr. Serbousek
said.  "The company's track record of innovation, clinical
performance, and growth is unmatched, and I am honored to have
the opportunity to contribute to its future."

                        About Biomet

Based in Warsaw, Indiana, Biomet Inc. (NASDAQ: BMET) and its
subsidiaries design, manufacture, and market products used
primarily by musculoskeletal medical specialists in both
surgical and non-surgical therapy.  Biomet and its subsidiaries
currently distribute products in more than 100 countries,
including the Netherlands, Argentina and Korea.

Biomet Inc. and its subsidiaries design, manufacture, and market
products used primarily by musculoskeletal medical specialists
in both surgical and non-surgical therapy.  Biomet's product
portfolio encompasses reconstructive products, fixation
products, spinal products, and other products.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Sept. 27, 2007, Moody's Investors Service assigned final
debt ratings to Biomet, Inc. (B2 Corporate Family Rating) in
conjunction with the close of the leveraged buy-out transaction
by a consortium of equity sponsors.  Moody's said the rating
outlook is negative.


FIAT SPA: India Plant to Start Linea Line Production in August
--------------------------------------------------------------   
Fiat India Chief Executive Officer Rajeev Kapoor said that the
company's Linea family car will start production in August 2008
at its joint venture plant in Ranjangaon, India, Thomson
Financial News reports.

The plant is a 50:50 joint venture between Fiat and Tata Motors
Ltd's and has a 100,000-car and 200,000-engine and transmission
parts manufacturing capacity.

                       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.

                        *     *     *

In November 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.

In October 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 company also carries B short-
term rating.  S&P said the outlook is stable.


GRUPO ASISTENCIAL: Proofs of Claim Verification Is Until May 9
--------------------------------------------------------------
Susana Graciela Marino, the court-appointed trustee for Grupo
Asistencial de Alta Complejidad-Ambulancias SA's bankruptcy
proceeding, will be verifying creditors' proofs of claim until
May 9, 2008.

Ms. Marino 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 Grupo Asistencial 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 Grupo Asistencial's
accounting and banking records will be submitted in court.

La Nacion didn't state the submission deadlines for the reports.

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

The debtor can be reached at:

          Grupo Asistencial de Alta Complejidad-Ambulancias SA
          Remedios de Escalada de San Martin 4880
          Buenos Aires, Argentina

The trustee can be reached at:

          Susana Graciela Marino
          Uruguay 560
          Buenos Aires, Argentina


MUNISTAR ARGENTINA: Claims Verification Is Until April 21
---------------------------------------------------------
Ernesto Oscar Puerta, the court-appointed trustee for Munistar
Argentina S.A.'s bankruptcy proceeding, will be verifying
creditors' proofs of claim until April 21, 2008.

Mr. Puerta will present the validated claims in court as
individual reports on June 2, 2008.  The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Munistar Argentina 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 Munistar Argentina's
accounting and banking records will be submitted in court on
July 14, 2008.

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

The trustee can be reached at:

          Ernesto Oscar Puerta
          Fragata Presidente Sarmiento 72
          Buenos Aires, Argentina


NUEVO BANCO INDUSTRIAL: Will Launch IPO This Year
-------------------------------------------------
Nuevo Banco Industrial de Azul will launch an initial public
offering on the Buenos Aires stock exchange this year, Argentine
financial daily Ambito Financiero reports.

According to Ambito Financiero, Banco Industrial will list
shares to consolidate its business plan, which is concentrated
on lending to small and medium-sized enterprises.

Banco Industrial turned to the capital markets this month and
sold some ARS73 million of short-term debt with an 11% coupon,
Business News Americas states.

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

                          *     *     *

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


OLD VETIKAR: Proofs of Claim Verification Deadline Is April 28
--------------------------------------------------------------
Isabel Ana Ramirez, the court-appointed trustee for Old Vetikar
SA's bankruptcy proceeding, will be verifying creditors' proofs
of claim until April 28, 2008.

Ms. Ramirez 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 Old Vetikar 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 Old Vetikar's
accounting and banking records will be submitted in court.

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

The debtor can be reached at:

          Old Vetikar SA
          Pasteur 259
          Buenos Aires, Argentina

The trustee can be reached at:

          Isabel Ana Ramirez
          Teniente General Juan Domingo Peron 2082
          Buenos Aires, Argentina



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

CENVEO INC: Delay in 10-K Filing Won't Affect Rating, S&P Says
--------------------------------------------------------------
Standard & Poor's Ratings Services said that Cenveo Inc.'s delay
in the filing of its 2007 10-K does not currently affect the
rating or outlook on the company.  Cenveo is currently in the
process of completing its required year-end audit and is
conducting a review, directed by the audit committee of the
board, of recently discovered unsupported accounting entries
made by a former plant controller for two plants in the
company's envelope business.  The company plans to file its 2007
10-K by March 13, 2008.
     
As reported in the Troubled Company Reporter-Latin America on
Dec. 10, 2007, Standard & Poor's Ratings Services raised its
corporate credit rating on Cenveo Inc. to 'BB-' from 'B+'.  The
rating outlook is stable.

The company stated that it currently believes the individual was
operating alone and, as such, the scope of the unsupported
accounting entries is expected to be limited.  As a result, S&P
does not expect the matter will impair Cenveo's long-term
financial profile at this time.  However, S&P will monitor the
audit committee's review and related potential financial
restatements to determine their materiality and possible impact
on Cenveo's credit quality.  In the event the company further
delays the filing of its 2007 10-K, or if S&P believes potential
financial restatements or internal control issues are meaningful
enough to impact the company's risk profile, there could be
downward pressure on the rating.

Cenveo Inc. -- http://www.cenveo.com/-- (NYSE:CVO),  
headquartered in Stamford, Connecticut, is a leader in the
management and distribution of print and related products and
services.  The company provides its customers with low-cost
solutions within its core business of commercial printing and
packaging, envelope, form, and label manufacturing, and
publisher services; offering one-stop services from design
through fulfillment.  With over 10,000 employees worldwide,
Cenveo delivers everyday for its customers through a network of
production, fulfillment, content management, and distribution
facilities across the globe.

Cenveo acquired Cadmus Communications in a merger completed on
March 2007.  The company has operations in the US, India and the
Caribbean Rim, particularly in the Bahamas, Cuba, Jamaica,
Haiti, Dominican Republic, Puerto Rico, and Belize.



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

ANNUITY & LIFE: Settles Dispute With Transamerica for US$3 Mil.
---------------------------------------------------------------
Annuity and Life Re (Holdings), Ltd. has resolved its disputes
with Transamerica concerning the novation to Transamerica of the
company's reinsurance contracts with F&G and Scottish Re.  The
novations were effective Dec. 31, 2004, and had been the subject
of arbitration and other proceedings.

Pursuant to the settlement agreement relating to the F&G
business, the company will pay Transamerica US$3 million.  
Although the agreement discharges the company from any further
postnovation liabilities, the company remains responsible for
pre-novation activity on the F&G business.

The settlement agreement regarding the Scottish Re business was
a three-party agreement among the company, Transamerica and
Scottish Re. Pursuant to that agreement, the company will pay
Transamerica US$2.5 million and Scottish Re US$11,067,208 to
settle all claims.  The agreement discharges the company from
all future liabilities to Transamerica or Scottish Re.

Annuity and Life Re (Holdings), Ltd. -- http://www.alre.bm/or     
http://www.annuityandlifere.com/-- provides annuity and life     
reinsurance to insurers through its wholly owned subsidiaries,
Annuity and Life Reassurance, Ltd., and Annuity and Life
Reassurance America, Inc.  The company has operations in
Bermuda.

                    Going Concern Doubt

Chartered Accountants of Hamilton, Bermuda, raised substantial
doubt about Annuity and Life Re (Holdings), Ltd.'s ability to
continue as a going concern after it audited the company's
annual report for 2004.  The auditor pointed to the company's
significant losses from operations and experience of liquidity
demands.

Annuity and Life Re incurred losses for two consecutive
quarters.  The company posted a net loss of US$92,056 for the
three months ended June 30, 2007, compared to a net loss of
US$649,949 for the same period in 2006.  The company incurred a
net loss from continuing operations of US$88 million for the
three months ended Sept. 30, 2007, as compared to a net loss
from continuing operations of US$212.2 million for the same
period in 2006.



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

COEUR D'ALENE: Discloses 2007 Exploration Program Results
---------------------------------------------------------
Coeur d'Alene Mines Corporation reported significant results
from its US$14.9 million exploration program during 2007.  
Coeur's exploration strategy continued to focus on cost-
effectively adding new mineralization at its existing properties
while continuing to expand the company's greenfields
initiatives.

Due to this success and the addition of the Palmarejo Project in
late 2007, the company has increased its 2008 exploration budget
to a record US$27.6 million, with almost a third of that amount
allocated to Palmarejo, where production is expected to commence
next year at annualized levels of approximately 10.4 million
ounces of silver and 115,000 ounces of gold.

Highlights of the 2007 program include:

    * High-grade drill results from Guadalupe Norte at
      Palmarejo, Mexico and from the new Los Bancos target north
      of Guadalupe.

    * Nearly eleven million new silver mineral resource ounces
      defined in two of five new veins discovered in the Cerro
      Bayo District, Chile.

    * Discovery of the new Betty Sur high-grade silver veins in
      the Martha District, Argentina.

    * New silver, gold and base metal mineralization at the
      Rochester mine, Nevada.

    * Favorable results from exploration on the company's
      properties in the Lake Victoria Gold Belt of Tanzania.

"These positive results confirm our ability to continue to grow
the Company through exploration on our large land positions
around our existing mines and development projects," said Dennis
E. Wheeler, Chairman, President and Chief Executive Officer.  
"Because of these recent successes and the completion of the
transactions that resulted in the addition of the Palmarejo
project to Coeur, we have increased our exploration program by
over 80% this coming year, with almost a third of the total
targeted for our newly acquired Palmarejo silver and gold
development property, where production will begin within twelve
months, and where our extensive land holdings hold great
potential for additional exploration success."

                            Palmarejo

Drilling in December at the company's newly acquired Palmarejo
project in the state of Chihuahua, Mexico returned positive
results from the Guadalupe zone and also continued to confirm
the prospective nature of the nearby Los Bancos structure.  
Palmarejo is under construction with production expected to
begin in the first quarter of 2009.  The site is located in
Mexico's premier silver-gold district in Chihuahua and the
Sierra Madre belt, with land holdings covering more than 12,100
hectares.  A feasibility study is nearing completion to define
the first proven and probable mineral reserve on this large
prospective property.  The company believes the Palmarejo
District holds tremendous exploration potential and has
committed over US$8.3 million in 2008 to discover new mineral
resources and define new mineral reserves.

In recent drilling at Guadalupe, assay results confirmed the
extension of the Guadalupe Norte Clavo which remains open to the
north and at depth.  Very significant results were received from
several holes – notably TGDH-218D and 222D.  At the Los Bancos
target, located north of Guadalupe, reverse circulation drill
hole LBDH-025, the deepest hole drilled to date, intercepted a
36.6-meter thick high-grade horizon.  Previous shallow drilling
had intersected anomalous mineralization with high silver-to-
gold ratios, suggesting that this earlier drilling intersected
the veins high in the paleo-epithermal system and above ore
grade mineralization.  Hole 25 confirmed our geologic model.

Drilling recommenced in January on Guadalupe with two core
drills to tighten the existing drill spacing to upgrade current
inferred and indicated mineral resources to indicated and
measured confidence and further extend the Guadalupe Norte zone.  
Drilling will resume at Los Bancos and around the main Palmarejo
area later this quarter.

                       Cerro Bayo (Chile)

At year-end, a total of 16,800 meters of core drilling was
completed in 87 drill holes on the five new ore-bearing
structures discovered in June.  Most of this drilling was
conducted on the Dagny and Fabiola veins where mineralization
has now been defined over a NW-SE strike of 700 meters and a
vertical height of 120 to 150 meters, and remains open for
expansion in the SE direction on both veins.  Mineral resources
estimated from this extensive drilling program on just two of
the five new veins are shown in the following table. They are
now subject to engineering and economic analyses to establish an
initial mineral reserve.  Permitting commenced in the fourth
quarter and development for underground access is expected to
commence in the third quarter of this year.

                       Martha (Argentina)

In the high-grade Martha silver and gold district in southern
Argentina, surface exploration was successful in discovering
mineralization in new structures using detailed stratigraphic,
structural and alteration mapping.  Late in the year, drilling
on one of the new structures – Betty Sur – encountered high-
grade silver mineralization north of the main Martha mine.  
Betty Sur, exposed as thin veinlets and faults over an east-west
strike length of over 0.7 km, is very significant due to the
high-grade nature of the mineralization and because it is hosted
in rocks similar to those of the Martha Mine.  Four core holes
were drilled into Betty Sur in 2007 with the following results.

                      Argentina Greenfields

The company conducted an extensive greenfields program in 2007
in Argentina, focused on five new properties in the province of
Santa Cruz.  Late in the year, a program of eight core holes
were completed at the wholly-owned Cisne property which borders
the Company's Lejano property northwest of the Martha mine in
western Santa Cruz.

Core length is believed to be true width as mineralization
occurs in sub-horizontal zones.

Very encouraging results were obtained from core holes C-03 and
C-06 which intersected moderate-grade silver mineralization over
significant drill widths.  Additional drilling is planned in
2008.

                       Rochester (Nevada)

During the last quarter of 2007, a program of trenching and core
drilling was conducted in the bottom of the main Rochester pit,
designed to test the extension of two high-grade vein systems
beyond the pit limits, termed the Pump and Corner structures.

All holes encountered significant precious and base metal
mineralization with particularly encouraging Ag and Au
mineralization intersected in holes 4, 5, 6 and 7.  Additional
exploration is planned for 2008 on the Pump and Corner
structures in the Rochester mine and other structural zones and
vein systems within the district.

                            Tanzania

During the year activities were focused on three project areas:
Kiziba Hill, Saragurwa and Bunda, all located within the Lake
Victoria Gold Belt.  At Kiziba Hill, a property controlled 100%
by the company which lies west of the Geita gold mine, a drill
program was completed that consisted of 6,100 meters of
reverse circulation drilling and 1,100 meters of core drilling.  
The holes were drilled along widely-spaced fences across 4
kilometers of strike length.  Gold mineralization occurs in
multiple east-west striking shear zones.  Over 35 drill
intervals with gold mineralization have been intercepted at
Kiziba in these zones.  To date, all drilling has been performed
on fences spaced 400 meters apart in an east-west direction and
70 meter north to south.  In-fill drilling is planned to confirm
mineralization continuity.

Drill hole IDs with KC prefix are core holes and holes with KR
prefix are reverse circulation holes.  True widths are not yet
known.

At Saragurwa, which the company controls under an option
agreement with a private Tanzanian entity, a core drilling
program was completed during 2007 totaling 2,800 meters.  A
detailed soil sampling program was carried out in conjunction
with the drill program and a total of 271 samples were
collected.  Gold mineralization is being intercepted and results
from the 2007 soil survey at Saragurwa have identified two
additional parallel zones of anomalous gold with strike lengths
of over one kilometer.

All core holes.  True widths are not yet known.

                     About Coeur d'Alene

Coeur d'Alene Mines Corp. (NYSE:CDE) (TSX:CDM) --
http://www.coeur.com/-- is the world's largest primary silver
producer, as well as a significant, low-cost producer of gold.
The company has mining interests in Nevada, Idaho, Alaska,
Argentina, Chile, Bolivia and Australia.

                         *     *     *

Coeur d'Alene Mines Corp.'s US$180 Million notes due Jan. 15,
2024, carry Standard & Poor's Ratings Services B- rating.



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

BANCO NACIONAL: Increases Infrastructure Funds to BRL25.8 Bil.
--------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social has
increased funds for infrastructure by 62% to BRL25.8 billion in
the last 12 months ended January 2008, compared to the prior
period.

According to Business News Americas, this was the first time
that Banco Nacional gave more funds to infrastructure than to
industry.  

BNamericas relates that resources for the Brazilian government's
growth acceleration plan influenced the results, representing
BRL5 billion or 39.9% of the total funds for the period up to
January 2008.

"The tendency is that resources [for infrastructure] will
continue at this level since the bank has already approved
projects in the sector and has more projects in view," Banco
Nacional's Infrastructure Director Wagner Bittencourt told
BNamericas.

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

                           *     *     *

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


BANCO NACIONAL: Delivers Two Trucks & 30 Trolleys to Cortrap
------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social has
delivered two moving trucks and 30 recycled material collecting
trolleys to Cooperativa de Reciclagem Trabalho e Producao
(Cortrap) [Co-operative of Recycling, Work and Production],
located in Brasilia.  The trucks are worth BRL108,789.00 each
and were received by Cortrap director, Janilson Santana Andrade,
at the headquarters of the co-operative, in Cidade do Automovel
[Automobile City].  These were the first trucks delivered to one
of the 34 co-operatives enrolled in BNDES program of support to
recycled material collectors, launched by president Lula, on
Oct. 1, 2007.

The trucks are destined to locations where higher residue
volumes are collected.  The collecting trolleys are destined to
those points where the volume is not so concentrated.

The event had the participation of a technical team from BNDES.  
Also represented were Banco do Brasil and Caixa Economica
Foundations -– which support the co-operative since its
construction -– as well as representatives of the Ministry of
Social Development and members of the house of representatives
and the Federal Senate.

For the economist Eduardo Reis Gonçalves, who spoke on behalf of
BNDES, "this is a first step to support collectors of the
Federal District, which currently relies on 15 co-operatives
distributed by the 15 Administrative Regions in Brasilia."  And
to have an idea of the relevance of this initiative, the
economist highlighted that "only Cortrap congregates 110
families, with an average of four kids, each."

Another aspect stressed by the economist was that the Bank's
action in support to these co-operatives is made with basis on
societies.  "This is a social inclusion effort for people who
were out of the consumption social links.  The collectors work
with the base, the garbage, a material which nobody wants to
work with.  This is good for the environment and for the
economy, since you have the plastic and the paper back, on a
clean way."

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

                           *     *     *

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


COMPANHIA ENERGETICA: Energias Wants to Join Consortium
-------------------------------------------------------
Energias do Brasil's President Antonio Pita de Abreu told
Business News Americas that the company wants to join a
consortium to bid for Companhia Energetica de Sao Paulo.

BNamericas relates that the Sao Paulo local government will
publish a list of prequalified bidders on March 14 and a list of
companies that offer a financial guarantee of BRL1.74 billion.  
According to the report, the state will host the auction on
March 26.  

Mr. Pita de Abreu commented to reporters, "We were waiting for
the auction rules to join a consortium because we feel Cesp
[Companhia Energetica] is too big a company for one single
player to purchase."

Energias do Brasil hasn't confirmed its participation in the
Companhia Energetica auction, BNamericas says.

                     About Energias do Brasil

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%.

                     About Companhia Energetica

Headquartered in Sao Paulo, Brazil, Companhia Energetica de Sao
Paulo (BOVESPA: CESP3, CESP5 and CESP6) is the country's third
largest power generator, majority owned by the State of Sao
Paulo.  CESP operates 6 hydroelectric plants with total
installed capacity of 7,456 MW and reported net revenues of
BRL1,983 million in the last twelve months through Sept. 30,
2006.

                         *     *     *

In October 2007, Standard & Poor's Ratings Services raised its
ratings on electricity generator Companhia Energetica de Sao
Paulo, including its corporate credit rating to 'B' from 'B-'.  
At the same time, S&P raised its Brazil national scale ratings
on CESP to 'brBBB-' from 'brBB'.  S&P said the outlook remains
positive on both scales.


DELPHI CORP: Shareholder Settlement Hearing Set for April 29
------------------------------------------------------------
The Hon. Gerald E. Rosen of the U.S. District Court for the
Eastern District of Michigan, Southern Division, will convene a
hearing on April 29, 2008, to decide, among other things, final
Court approval of a settlement providing for a recovery of
US$38,250,000 to be paid by Deloitte & Touche LLP, Delphi
Corp.'s outside auditor; and on the dismissal of claims against
Deloitte & Touche.

                 District Court Certifies Class

The Court has preliminarily certified a class consisting of all
persons and entities who purchased or acquired publicly traded
securities issued by Delphi Trust I and Delphi Trust II between
March 7, 2000, and March 3, 2005, inclusive, and who suffered
damages thereby, including all entities who acquired shares of
Delphi common and preferred stock in the secondary market and
debt securities in Delphi.  The case is in In re Delphi
Securities, Derivative and ERISA Litigation, MDL No. 1725, Case
No. 05-md-1725.

The District Court also preliminarily approved the Deloitte &
Touche Settlement providing for a recovery of $38,250,000 to be
paid by Deloitte & Touche LLP, Delphi Corp.'s outside auditor
during the Class Period.  The Class will receive an interest on
the Deloitte & Touche Settlement Amount.

Copies of the full printed Deloitte & Touche Notice and the
Proof of Claim and Release form may be obtained at
http://www.delphiclasssettlement.comor by contacting:

   In re Delphi Corporation Securities Litigation Settlement
   c/o The Garden City Group, Inc.
   Claims Administrator
   P.O. Box 9185
   Dublin, OH 43017-4185

Inquiries may be made to the four co-lead counsel for the Lead
Plaintiffs in the Securities Litigation:

    * Bradley E. Beckworth, Esq.
      Nix, Patterson & Roach, L.L.P.
      205 Linda Drive
      Daingerfield, Texas 75638

    * Sean Handler, Esq.
      Schiffrin Barroway Topaz & Kessler, LLP
      280 King of Prussia Road
      Radnor, PA 19087

    * Jeffrey N. Leibell, Esq.
      Bernsten Litowitz Berger & Grossmann, LLP
      1285 Avenue of the Americas
      New York 10019

    * Stuart Grant, Esq.
      Grant & Eisenhofer P.A.
      Chase Manhattan Centre
      Suite 2100
      1201 N. Market St.
      Wilmington, DE 19801

Further information may also be obtained by writing to the
Claims Administrator or calling 1-800-918-0998 toll-free.

The Securities Litigation has been resolved with respect to the
Debtors pursuant to the Court-approved Multidistrict Litigation  
Settlements between the Debtors and the Lead Plaintiffs.  Under
the terms of the MDL Settlements, the Debtors granted the Lead
Plaintiffs claims that will be satisfied through Delphi's
confirmed Plan of Reorganization.

To participate in the Deloitte & Touche Settlement, parties-in-
interest must have submitted a valid proof of claim in
connection with the MDL Settlements or submit a valid proof of
claim to the Claims Administrator postmarked not later than
May 30, 2008.  The deadline for filing objection and the receipt
of requests for exclusions is April 15, 2008.

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

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

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

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

                          *     *     *

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

As reported in the Troubled Company Reporter on Jan. 11, 2008,
Standard & Poor's Ratings Services expects to assign its 'B'
corporate credit rating to Troy, Michigan-based automotive
supplier Delphi Corp. upon the company's emergence from Chapter
11 bankruptcy protection, which may occur by the end of the
first quarter of 2008.  S&P expects the outlook to be negative.
In addition, Standard & Poor's expects to assign these
issue-level ratings: a 'B+' issue rating (one notch above the
corporate credit rating), and '2' recovery rating to the
company's proposed US$3.7 billion senior secured first-lien term
loan; and a 'B-' issue rating (one notch below the corporate
creditrating), and '5' recovery rating to the company's proposed
US$825 million senior secured second-lien term loan.


ENERGIAS DO BRASIL: Inks Bridge Loan Contracts With Citibank
------------------------------------------------------------
Energias do Brasil S.A. has signed bridge loan contracts worth
US$270 million with Citibank and a syndicate of banks to
partially fund the UTE Porto do Pecem project.

Other signatories to the contracts are:

          -- Banco do Brasil,
          -- Banco Espirito Santo,
          -- Grupo Banco Comercial Portugues,
          -- ING Bank,
          -- West LB, and
          -- MPX Energia S.A. (a power company).

The bridge loan will be replaced with recourses arising from the
long term financing.  The bridge loan will be terminated with
the first disbursement by IDB (Inter-American Development Bank)
and BNDES (Brazilian Development Bank) under the long term
financing.  UTE Porto do Pecem project has already secured
eligibility for IDB and BNDES long term financing.

Business News Americas notes that investments in Porto do Pecem
will total US$1.2 billion.  Porto do Pecem will have installed
capacity of 720 megawatts beginning in 2011, the report says.  

Energias do Brasil and MPX will add 360 megawatts of power to
Porto do Pecem's installed capacity in the second phase, which
will conclude in 2013, BNamericas says, citing MPX.  MPX has
nine power generation projects under development consisting
primarily of coal-fired thermoelectric plants, with a totally
integrated concept and strategically located at the main ports
and super ports in Brazil and Chile.

                     About Energias do Brasil

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.


ENERGIAS DO BRASIL: Wants to Join Group to Bid for Energetica
-------------------------------------------------------------
Energias do Brasil's President Antonio Pita de Abreu told
Business News Americas that the company wants to join a
consortium to bid for Companhia Energetica de Sao Paulo.

BNamericas relates that the Sao Paulo local government will
publish a list of prequalified bidders on March 14 and a list of
companies that offer a financial guarantee of BRL1.74 billion.  
According to the report, the state will host the auction on
March 26.  

Mr. Pita de Abreu commented to reporters, "We were waiting for
the auction rules to join a consortium because we feel Cesp
[Companhia Energetica] is too big a company for one single
player to purchase."

Energias do Brasil hasn't confirmed its participation in the
Companhia Energetica auction, BNamericas says.

                   About Companhia Energetica

Headquartered in Sao Paulo, Brazil, Companhia Energetica de Sao
Paulo (BOVESPA: CESP3, CESP5 and CESP6) is the country's third
largest power generator, majority owned by the State of Sao
Paulo.  CESP operates 6 hydroelectric plants with total
installed capacity of 7,456 MW and reported net revenues of
BRL1,983 million in the last twelve months through
Sept. 30, 2006.

                    About Energias do Brasil

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.


FORD MOTOR: Navistar Re-Files Breach of Contract Suit
-----------------------------------------------------
Navistar International Corp. has re-filed a lawsuit against Ford
Motor Co. for violating a diesel engine contract in which Ford
promised that Navistar would be Ford's primary manufacturer and
supplier of V-6 and V-8 diesel engines in North America,
including diesel engines for Ford's F-150 pickup trucks.

The suit, filed in the Circuit Court of Cook County, Ill., seeks
"at least hundreds of millions of dollars."

Navistar originally sued Ford alleging breach of the contract in
June 2007.  Cook County Circuit Court Judge Dennis Burke
dismissed that suit to allow for mediation of the dispute by a
third-party.  Navistar and Ford were unable to resolve the
dispute through mediation, so Navistar now has re-filed the
lawsuit.

According to the lawsuit, Ford will introduce a 4.4 liter diesel
engine for production in North America by late 2009 or 2010 or
possibly earlier. Ford intends to produce the engine itself for
use in the F-150, and possibly other vehicles. The lawsuit
states that Ford cannot manufacture the engine without violating
its contract with Navistar.  Reportedly, Ford will produce the
engines at a Ford facility in Chihuahua, Mexico.

The lawsuit states that Navistar spent millions of dollars and
devoted years of its employees' time to develop a next
generation diesel engine named "Lion" for use in F-150 pickup
trucks and other vehicles in which Ford had not previously
offered diesel engines.  Ford agreed that Navistar, which has
been the exclusive diesel engine supplier for Ford's heavy-duty
pickup trucks since 1979, would be the manufacturer and supplier
of the new engines for the North American vehicle market.

The lawsuit, filed Feb. 26, 2008, is separate from previously
reported litigation between the two companies.  In 2007, Ford
filed a lawsuit against Navistar involving engine pricing and
warranty claims on Power Stroke diesel engines.  Navistar
counter-sued, stating that pricing was consistent with
contractual agreements, that the warranty claims were entirely
without merit and that Ford has stopped honoring the terms of an
agreement under which the engines were built.  Navistar amended
its counter-suit in May 2007 and asked for in excess of
US$2 billion in damages.

               About Navistar International

Based in Warrenville, Illinois, Navistar International Corp.
(NYSE:NAV) -- http://www.nav-international.com/-- is the parent
company of Navistar Financial Corp. and International Truck and
Engine Corp.  The company produces International brand
commercial trucks, mid-range diesel engines and IC brand school
buses, Workhorse brand chassis for motor homes and step vans,
and is a private label designer and manufacturer of diesel
engines for the pickup truck, van and SUV market.  The company
also provides truck and diesel engine parts and service sold
under the International brand.  A wholly owned subsidiary offers
financing services.  The company has operations in Brazil,
Iceland and India.

                       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-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.


FURNAS CENTRAIS: Wants Partner to Bid for Transmission Lines
------------------------------------------------------------
Furnas Centrais Eletricas S.A. is seeking a partner to bid in an
auction to build transmission lines to connect hydro plants on
the Madeira river, Business News Americas reports.

Brazilian power regulator Aneel hasn't disclosed the auction
date for transmission lines, BNamerica says.

Firms that want to bid with Furnas Centrais must notify the
company before March 7.

Headquartered in Rio de Janeiro, Furnas Centrais Eletricas S.A.
is one of Brazil's largest electricity generation and
transmission utility companies.  Furnas Centrais is closely
held, with 99.5% of its shares owned by Eletrobras, the
Brazilian Federal Government's holding company that controls
about 39% of the country's installed power generation capacity
and approximately 56% of high voltage energy transmission
countrywide.  Furnas Centrais operates 10 hydro-power plants
representing some 92% of its total installed capacity of 9,458
megawatts (8% is represented by 2 thermal power plants).  The
company also owns about 19,278 kilometers of transmission lines,
mainly in the southeast and mid-west regions of Brazil.  These
assets include the transmission line connecting the Itaipu power
plant, which supplies energy consumption to the most
industrialized region of the country.  Furnas is also
responsible for trading the nuclear energy generated by
Eletronuclear (99.8% Eletrobras), which represents about 23% of
energy sales volume.  In 2006, Furnas reported net earnings of
BRL364 million (about US$165 million) on BRL5,325 million
(US$2,416 million) net revenues.

                           *     *     *

As reported ion the Troubled Company Reporter-Latin America on
Aug. 20, 2007, Moody's America Latina Ltda. affirmed its Ba1
global local currency issuer rating for Furnas Centrais
Eletricas S.A.


GENERAL MOTORS: Idles Assembly Plant Due to AAM Workers' Strike
---------------------------------------------------------------
American Axle & Manufacturing Inc.'s worker strike has affected
the production of General Motors Corp.'s vehicles equipped with
the former's auto parts sooner that it thought, various sources
report.

GM's production of Chevrolet Silverado and GMC Sierra pickups at
the Pontiac Assembly Center, which has 2,500 hourly and salaried
employees, in Michigan, ceased after the first shift Thursday,
the Associated Press related citing GM spokesman Tom Wickham.

As reported in the Troubled Company Reporter on Feb. 27, 2008,
although the strike of union workers at its supplier American
Axle and Manufacturing Inc. does not affect General Motors
Corp.'s plant production yet, the auto maker says it is
following the protest closely.  GM has a large inventory of
pickups and sport utility vehicles, which are equipped with
American Axle's parts.  However, if the strike lasts longer than
the supply, GM's assembly lines would suffer.

United Auto Workers union president Ron Gettelfinger and Vice
President James Settles disclosed that members at American Axle
began an unfair labor practices strike at 12:01 a.m. on Feb. 26,
2008, following expiration of a four-year master labor
agreement.  Talks broke off Monday with major issues unresolved.

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: Supplier's Workers Strike Won't Affect S&P Rtg.
---------------------------------------------------------------
Standard & Poor's Ratings Services said that its ratings on
General Motors Corp. (GM; B/Stable/B-3) are not immediately
affected by the United Auto Workers work stoppage at key
supplier American Axle and Manufacturing Holdings Inc.
(BB/Negative/--) that began Feb. 26.

S&P expects American Axle and the UAW to reach an agreement that
will improve American Axle's cost position.  However, if the
American Axle work stoppage were to persist beyond a brief
period (likely measured in days, not weeks), it would begin to
affect GM's production schedules and there would be a ripple
effect on many of GM's suppliers as well.
   
If S&P came to believe that the American Axle work stoppage
would draw out, S&P could place the ratings on GM on CreditWatch
with negative implications, along with the ratings on certain
suppliers that depend heavily on GM production.  S&P already
expects GM's first-quarter production to be below year-earlier
levels, which should provide some room for a short work
stoppage.
   
In addition, S&P estimates that GM has about US$27.3 billion in
cash, marketable securities, and readily available assets in its
existing VEBA trust.  The company also has access to
US$7 billion in committed U.S. credit lines.

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.


INTELSAT LTD: ViewAfrica Extends Contract to Up Channel Offering
----------------------------------------------------------------
Intelsat Ltd. reported that U.K.-based ViewAfrica has contracted
for additional capacity on the Intelsat 10 satellite for
increased channel distribution.  ViewAfrica Network is
distributing free-to-air programming bouquets reaching all the
Sub-Saharan countries.

"The Intelsat 10 satellite is the most attractive payload for
us, containing multiple high-powered beams focused on the
regions we seek to grow our business," said Awaes Jaswal, CEO,
ViewAfrica Network.  "We have once again turned to Intelsat
because its industry-leading reliability and video penetration
enables us to efficiently expand as market opportunities present
themselves."

"The IS-10 Ku-band service is ideally suited for DTH
applications.  We are working closely with customers like
ViewAfrica in building and growing some of the most popular
broadcast communities worldwide," said Jean Philippe Gillet,
Intelsat's Regional Vice President, Europe and Middle East
Sales.  "The Intelsat 10 satellite, is Intelsat's premier video
neighborhood for Africa."

ViewAfrica Network, uplinking out of Stellar in Germany, carries
a free-to-air bouquet of religious and general entertainment
programming that currently includes the following networks:
Daystar, LoveWorld, Press TV and Supreme Master TV.  ViewAfrica
is among 27 DTH platforms built on the global Intelsat system.

                         About Intelsat

Headquartered in Pembroke, Bermuda, Intelsat, Ltd. --
http://www.intelsat.com/-- is the largest fixed
satellite service operator in the world and is owned by Apollo
Management, Apax Partners, Madison Dearborn, and Permira.  The
company has a sales office in Brazil.

                         *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 19, 2008, Standard & Poor's Ratings Services lowered its
corporate credit rating on Bermuda-based Intelsat Ltd. to 'B'
from 'B+' and removed the ratings from CreditWatch.  S&P said
the outlook is stable.


MILACRON INC: Dec. 31 Balance Sheet Upside-Down by US$51.1 Mil.
---------------------------------------------------------------
Milacron Inc. released its results for the fourth quarter ended
Dec. 31, 2007.  The company's balance sheet showed total assets
of US$592.9 million and total liabilities of US$644 million,
resulting in a US$51.1 million stockholders' deficit.  Deficit,
at Dec. 31, 2006, was US$21.3 million.

The company reported a net loss in the fourth quarter of 2007 of
US$73.4 million, caused primarily by a non-cash writedown of
deferred tax assets of US$63.0 million associated with the
change of ownership of the majority of the company's preferred
stock, as announced in October.  The loss also included
US$7.4 million in restructuring charges, US$1.9 million in one-
time costs related to the curtailment of the company's U.S.
pension plan, as well as US$1.4 million in expenses related to
the preferred stock transaction.  This compared to a net loss in
the fourth quarter of 2006 of US$8.6 million, which included
US$5.1 million in restructuring costs and US$1.8 million in
refinancing charges.

"We continue to make solid progress throughout the company in
terms of our restructuring and other cost reduction
initiatives," Ronald D. Brown, chairman, president and chief
executive officer, said.  "Our manufacturing margins and
operating cash flow or EBITDA are both up significantly from the
year-ago quarter.  And our efforts to expand Milacron's presence
in faster-growing markets of the world are also paying off.  In
fact, our sales to markets outside the U.S., Canada and Western
Europe are up well in excess of 20% and now represent about 25%
of our total sales."

These gains in non-traditional markets helped offset declines in
North America, as fourth quarter 2007 sales reached
US$217 million, up 10% from US$198 million in the year-ago
quarter.  About half of the sales increase came as a result of
favorable currency translation effects.  New orders in the
quarter were US$213 million, up from US$203 million in 2006,
entirely due to currency translation.

Aided by favorable resolutions of long-standing product
liability claims and the benefits of restructuring and product
cost reduction initiatives, manufacturing margins in the quarter
rose to 22.3%, up from 19.4% in the year ago quarter.

Net cash provided by operations during the quarter was
US$9.6 million, compared to a use of cash by operations of
US$800,000 in the fourth quarter of 2006.  At the end of the
quarter, Milacron had US$41 million in cash, up US$3 million
from the beginning of the quarter.  The company also had US$34
million in borrowing availability under its North American
revolving credit agreement, down from US$42 million at the
beginning of the quarter.

                            Year 2007

Milacron's net loss for the year was US$88.8 million, or
US$19.59 per share.  This included the writedown of tax assets
of US$63.0 million, restructuring charges of US$12.5 million,
US$1.9 million in one-time costs for pension plan curtailment,
as well as US$1.9 million in expenses for the preferred stock
transaction.  In 2006, Milacron lost US$39.7 million, or
US$10.15 per share, which included US$17.4 million in
restructuring costs and US$1.8 million in refinancing charges.  
Operating earnings in 2007 improved to US$3.1 million, up from a
loss of US$7.2 million in 2006.  Sales in 2007 fell to US$808
million from US$820 million in 2006, while new orders were
US$826 million, down slightly from US$828 million in the prior
year. 2007 sales and new orders were helped by approximately
US$29 million in favorable currency translation effects.

Throughout 2007, Milacron faced severe declines in two of its
largest markets in North America: injection molding machinery
and mold technologies, which have been impacted by the shakeout
in U.S. auto parts suppliers and the decline in new housing
starts.  During the year, however, restructuring measures helped
reduce overall operating expenses by US$12 million, while global
redesign and sourcing initiatives cut product costs by
US$6 million.  To further soften the impact of the downturn in
capital spending in North America, Milacron focused on growing
aftermarket sales, which approached US$200 million and grew to
represent 36% of total machinery sales.  The company also
accelerated efforts to further penetrate markets outside the
U.S., Canada and Western Europe.  As a result, sales to these
non-traditional markets rose to US$187 million in 2007, up 27%
over 2006.

Continued cost reductions and efficiency improvements helped
raise manufacturing margins in 2007 to 20.2%, a significant
increase over 18.5% in 2006.

Net cash provided by operations for the year was US$9.6 million,
compared to a use of cash by operations of US$19.2 million in
2006.

                             Outlook

"The economic outlook for 2008 is mixed," Mr. Brown said.  "We
expect to see continued growth in most of our markets outside of
North America, particularly in China, India and other faster-
growing economies.  Due to uncertainty in the automotive and
housing sectors, however, we are not anticipating any market
growth in North America.

"We entered the year with a solid backlog for the first quarter.  
This should enable us to show significant year-over-year
improvement in sales and operating results compared to the first
quarter of 2007.

"We continue to work hard to make 2008 a significantly better
year for Milacron," Mr. Brown said.  "In addition to improved
operating results from restructuring efforts, our cash flow will
benefit from the U.S. pension plan freeze we implemented at the
end of last year, from lower insurance costs going forward and
from the ongoing sale of redundant or non-core assets.  We are
also in the process of negotiating an asset-based loan in
Europe, which will increase our overall liquidity."

                     Annual Meeting Date Set

Milacron's board of directors set May 8, 2008 as the date of the
annual meeting of shareholders to be held in Cincinnati, Ohio,
and March 12, 2008 as the record date for determination of
shareholders entitled to notice of and to vote at the annual
meeting.

                         About Milacron

Headquartered in Cincinnati, Ohio, Milacron Inc. --
http://www.milacron.com/-- is a global manufacturer and  
supplier of plastics-processing equipment and related supplies.  
Milacron is also one of the largest global manufacturers of
synthetic water-based industrial fluids used in metalworking
applications.  The company has major manufacturing facilities in
Brazil, North America, Europe, and Asia.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Dec. 27, 2007, Moody's Investors Service lowered the ratings of
Milacron Inc. Corporate Family, to Caa2 from Caa1; Probability
of Default, to Caa2 from Caa1; and senior secured notes, to Caa2
from Caa1.  The lowered ratings reflect the company's weak
credit metrics and ongoing cash flow pressures.


NAVISTAR INTERNATIONAL: Re-Files Breach of Contract Suit vs Ford
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Navistar International Corp. has re-filed a lawsuit against Ford
Motor Co. for violating a diesel engine contract in which Ford
promised that Navistar would be Ford's primary manufacturer and
supplier of V-6 and V-8 diesel engines in North America,
including diesel engines for Ford's F-150 pickup trucks.

The suit, filed in the Circuit Court of Cook County, Ill., seeks
"at least hundreds of millions of dollars."

Navistar originally sued Ford alleging breach of the contract in
June 2007.  Cook County Circuit Court Judge Dennis Burke
dismissed that suit to allow for mediation of the dispute by a
third-party.  Navistar and Ford were unable to resolve the
dispute through mediation, so Navistar now has re-filed the
lawsuit.

According to the lawsuit, Ford will introduce a 4.4 liter diesel
engine for production in North America by late 2009 or 2010 or
possibly earlier.  Ford intends to produce the engine itself for
use in the F-150, and possibly other vehicles.  The lawsuit
states that Ford cannot manufacture the engine without violating
its contract with Navistar. Reportedly, Ford will produce the
engines at a Ford facility in Chihuahua, Mexico.

The lawsuit states that Navistar spent millions of dollars and
devoted years of its employees' time to develop a next
generation diesel engine named "Lion" for use in F-150 pickup
trucks and other vehicles in which Ford had not previously
offered diesel engines.  Ford agreed that Navistar, which has
been the exclusive diesel engine supplier for Ford's heavy-duty
pickup trucks since 1979, would be the manufacturer and supplier
of the new engines for the North American vehicle market.

The lawsuit, filed Feb. 26, 2008, is separate from previously
reported litigation between the two companies.  In 2007, Ford
filed a lawsuit against Navistar involving engine pricing and
warranty claims on Power Stroke diesel engines.  Navistar
counter-sued, stating that pricing was consistent with
contractual agreements, that the warranty claims were entirely
without merit and that Ford has stopped honoring the terms of an
agreement under which the engines were built.  Navistar amended
its counter-suit in May 2007 and asked for in excess of
US$2 billion in damages.

                        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.

                   About Navistar International

Based in Warrenville, Illinois, Navistar International Corp.
(NYSE:NAV) -- http://www.nav-international.com/-- is the parent
company of Navistar Financial Corp. and International Truck and
Engine Corp.  The company produces International brand
commercial trucks, mid-range diesel engines and IC brand school
buses, Workhorse brand chassis for motor homes and step vans,
and is a private label designer and manufacturer of diesel
engines for the pickup truck, van and SUV market.  The company
also provides truck and diesel engine parts and service sold
under the International brand.  A wholly owned subsidiary offers
financing services.  The company has operations in Brazil,
Iceland and India.

                        *     *     *

The company carries Standard & Poor's Ratings Services' 'BB-'
corporate credit ratings with a negative outlook.  The company's
subsidiary, Navistar Financial Corp. also carries S&P's BB-
rating.


NORTEL NETWORKS: Posts $844 Mil. Net Loss in Fourth Quarter 2007
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Nortel Networks Corp. reported financial and operating results
for the fourth quarter and full year of 2007.

The Company reported a net loss in the fourth quarter of 2007 of
US$844 million, compared to net loss of US$80 million in the
fourth quarter of 2006 and net income of US$27 million in the
third quarter of 2007.   Nortel reported a net loss for 2007 of
US$957 million, compared to net earnings of US$28 million for
the year 2006.

Revenue was US$3.2 billion for the fourth quarter of 2007
compared to US$3.3 billion for the fourth quarter of 2006 and
US$2.7 billion for the third quarter of 2007.  In the fourth
quarter of 2007, revenue increased by 18% compared to the third
quarter of 2007 and excluding the impact of the UMTS Access
divestiture, revenue increased by 2% compared with the year-ago
quarter.  For 2007, revenues were US$10.95 billion compared to
US$11.4 billion for 2006.

"Nortel continued to make strong progress in the fourth quarter
as we completed a pivotal year in our transformation," Nortel
President and CEO Mike Zafirovski said.  "In a period of
significant change for our industry, we have now reported six
consecutive quarters of strong year over year improvement in
operating margin, reflected in a 353 basis points improvement in
the second half of 2006 and a 369 basis points improvement in
2007.  Although our fourth quarter operating margin was below
our target, it is the highest in 12 quarters.  We also recorded
a 386 basis point increase in gross margin to 43.7%, also the
highest in 12 quarters.  And most importantly, customers around
the world are validating our strategic direction by signing up
for multi-year engagements that leverage both our technological
innovation and world-class know-how.  We ended the year with a
positive book to bill of 1.01 in the fourth quarter."

Gross margin was 43.7% of revenue in the fourth quarter of 2007.
This compared to gross margin of 39.8% for the fourth quarter of
2006 and 43.0% for the third quarter of 2007.  Compared to the
fourth quarter of 2006, gross margins benefited primarily from
productivity improvements and mix.

Cash balance at the end of the fourth quarter of 2007 was
US$3.5 billion, up from US$3.13 billion at the end of the third
quarter of 2007.  The increase in cash was primarily driven by
cash from operating activities of US$417 million and a positive
impact from foreign exchange of US$16 million, partially offset
by cash used in financing activities of US$23 million and cash
used in investing activities of US$6 million.

                             Outlook

Nortel provided its financial outlook for the full year 2008,
and expects:

  * Revenue to grow in the low single digits compared to 2007;

  * Gross Margin to be about our business model target of 43% of  
    revenue;

  * Operating Margin as a percentage of revenue to increase by
    about 300 basis points compared to 2007.

At Dec. 31, 2007, the company's balance sheet showed total
assets of US$17.0 billion and total liabilities of US$13.4
billion, resulting in a US$2.7 billion, stockholders' equity.  
Equity, on Sept. 30, 2007, was US$2.9 billion and, on
Dec. 31, 2006, was US$1.1 billion.

                     About Nortel Networks

Headquartered in Ontario, Canada, Nortel Networks Corporation
(NYSE/TSX: NT) -- http://www.nortel.com/-- delivers next-
generation technologies, for both service provider and
enterprise networks, support multimedia and business-critical
applications.  Nortel's technologies are designed to help
eliminate today's barriers to efficiency, speed and performance
by simplifying networks and connecting people to the information
they need, when they need it.  Nortel does business in more than
150 countries around the world.  Nortel Networks Limited is the
principal direct operating subsidiary of Nortel Networks
Corporation.

Nortel does business in more than 150 countries including
Indonesia, the United Kingdom, Denmark, Russia, Norway,
Australia, Brazil, China, Singapore, among others.

                         *     *     *

Nortel Networks Corp. still carries Moody's Investors Service
'B3' Senior Unsecured Debt rating which was placed on March 22,
2007.


TELE NORTE: Earns BRL2.36 Billion in 2007
-----------------------------------------
Tele Norte Leste Participacoes SA's net profit increased 80% to
BRL2.36 billion in 2007, compared to BRL1.31 billion in 2006.

Revenue generating units increased by 1.11 million in the fourth
quarter 2007 and by 3.13 million in the full year, +134.8% and
+20.9%, respectively, compared to the fourth quarter 2006 and
full year 2006.  Units Oi Movel and Oi Velox outperformed in the
quarter, increasing respectively 1.08 million and 125,000.

Although the rate has slowed, the alternative plans continued to
expand during the quarter, increasing by 296,000 for a total of
5.0 million at the end of December 2007 (45.2% of all
residential lines).

With 125,000 new customers, Oi Velox maintained the rate of
expansion as in the previous quarter (127,000).  In 2007, there
were 390,000 net adds, 20.7% above 2006.

As per mobile services, Oi Conta Total also sustained the growth
rate of the previous quarter, closing the year with 537 thousand
customers (20.7% of the post-paid customer base).  In the pre-
paid segment, the net addition of 951 thousand customers during
the quarter was largely due to the continued success of the Oi
Ligadores campaign.

The net consolidated revenue for the quarter amounted to
BRL4,484 million, a slight increase compared to third quarter
2007 (+1.1%).  The figure for the full year 2007 came to
BRL17,584 million (+4.2%), mainly supported by data, broadband
and mobile services.

There was a slight increase in the average revenue per user
(ARPU) for wireline services (BRL85.59; +0.1% vs third quarter
2007), thereby reassuring for another quarter the success of the
alternative plans in stabilizing wireline revenues.  The ARPU
for mobile services (BRL22.74) was up 1.8% in relation to that
of the previous quarter and 2.7% higher than fourth quarter
2006.

The consolidated EBITDA totaled BRL1,548 million for the quarter
(margin of 34.5%), a reduction in relation to the EBITDA and
EBITDA margin for the previous quarter (BRL1,679 million and
37.8%).  The full year's EBITDA, of BRL6,501 million (margin of
37.0%), represents a 6.5% increase compared to 2006.  Adjusting
the non-recurring effects, the consolidated EBITDA for the year
reached BRL6.332 million (margin of 36.0%), 3.8% higher than
2006.

At the end of December 2007, the net debt of BRL2,681 million
represented a reduction of 14.2% for the quarter and 45.1% for
the year, and was equivalent to 0.41x EBITDA in 2007.

The consolidated net earnings totaled BRL911 million in fourth
quarter 2007 and BRL2,358 million in 2007 (BRL6.17/share and
US$3.17/ADR), the latter representing an 80.0% increase from
2006.

Consolidated capital expenditure in fourth quarter 2007 totaled
BRL1,026 million, and BRL2,328 million for the full year,
equivalent to 22.9% of the net earnings for the quarter (13.2%
for the year).  The free cash flow, after investments, amounted
to BRL629 million in the quarter (-41.5% vs third quarter 2007),
adding to a total of BRL3,330 million for the full year (+2.5%
vs. 2006).

The number of fixed telephone lines in service (14,222 thousand)
remained practically stable in relation to the figure at the end
of September 2007 (-0.7%).  The continuation of a more flexible
credit policy has been effective in securing customers in the
lower income segment of the customer base, which, despite a
higher level of default, generates positive overall results for
Oi Fixo.  The 1.2% reduction in relation to the customer base at
the end of 2006 was within the range predicted at the beginning
of the year.

A total of 5.0 million customers were on alternative plans at
the end of 2007, an increase of 6.3% in the quarter and 154.3%
for the year.  These plans, which represent 35.1% of the total
number of lines in service and 45.2% of residential lines,
contributed not only to the increase in customer loyalty, but
also to the defense and increase of wireline services ARPU.

The number of ADSL (Oi Velox) access points increased by 9.0% in
the quarter, thereby sustaining the strong pace of growth seen
in the previous quarter.  Oi Velox closed 2007 with a 1,518
thousand customer base, an increase of 34.6% (390 thousand)
compared to 1,128 thousand access points at the end of 2006.

Oi Movel also sustained a strong growth rate through the fourth
quarter 2007, generating 1,084 thousand net additions (gross
additions totaled 2,482 thousand and 1,398 thousand
disconnections) to the subscriber base, representing 37.3% of
the year's total net additions (2,906 thousand).  The churn rate
for the quarter (9.1%) was 2.4 percentage points lower than that
of the previous quarter.  At the end of the year, Oi Movel
customer base reached 15,984 thousand, an increase of 22.2%
compared to the end of December/06, thus confirming the
company's market leadership in Region I with a 26.9% market
share.

The pre-paid segment saw robust growth, due to the success of
the Oi Ligadores campaign, which began in July 2007 and
contributed to increase net additions in this segment by 2,152
thousand over the last two quarters of 2007 (+80.4% in the full
year).  At the end of 2007, the pre-paid customer base stood at
13,395 thousand.  The post-paid customer base recovered strongly
in the fourth quarter 2007 (+133 thousand net additions),
closing the year with a total of 2,589 thousand subscribers
(16.2% of the mobile subscriber base).

The consolidated gross revenue increased by 1.6% in the quarter
(+3.8% for the full year), with strong performances from mobile,
data and fixed-to-mobile (VC1, VC2 and VC3) services, which more
than offset the revenue loss from public telephones, network
usage and local fixed services.

The gross revenue from wireline services remained stable, both
on a quarterly and on a yearly basis (-0.2%).  During the fourth
quarter 2007, revenues from local services and public telephones
declined and were offset by increasing revenues from fixed-to-
mobile (VC1, VC2 and VC3), data and advanced voice/other
services.

For the year 2007, the highlights were higher revenues from
monthly subscriptions, data communication, fixed-to-mobile (VC1,
VC2 and VC3) and additional services, which served to offset the
reduced revenue from local, long distance and network usage
services.  The revenue streams were affected by these factors:

          (a) a 1.83% adjustment of the local and long distance
              tariffs, in July 2007 (except local minutes);

          (b) the same percentage adjustment (1.83%) of the
              local minutes tariff, in October 2007;

          (c) a 2.88% adjustment of fixed-to-mobile (VC1, VC2
              and VC3) tariffs, in July 2007 and increased
              traffic for these services;

          (d) the expansion of data transmission products,
              notably the broadband service - Oi Velox;

          (e) significant take-up by customers of alternative
              plans denominated in minutes (2.5 million);

          (f) a 20% reduction in the local network
              interconnection fee (TU-RL), in January 2007.

Fixed-to-Fixed: (monthly subscription, traffic, connection fee)

The gross revenue from local services declined by 2.0% in fourth
quarter 2007.  During this period, 296 thousand more customers
joined the alternative plans, which led to a reduction in the
excess traffic billed.  However, in this quarter, this was not
sufficient to increase the monthly subscriptions revenues,
though this did generate a year-on-year positive impact (+4.8%).

Fixed-to-Mobile: (VC1)

The increase in revenue, both for the quarter (+6.9%) and for
the full year (+4.6%), was influenced by the tariff adjustment
in July 2007 (2.88%) and by the increased traffic for this
service.

Long Distance Services (LD) Fixed-to-Fixed LD (DLD and ILD)

The 2.2% revenue reduction over the quarter and in relation to
the full year (-7.6%) was due to reduced traffic, and was
partially offset by the tariff adjustments in July 2007
(+1.83%).

Fixed-to-Mobile LD (VC2/VC3)

Long distance fixed-to-mobile services recorded 7.5% higher
revenue than in the third quarter 2007, with a 16.1% increase
over the full year.  This performance was due to the same
factors as those affecting VC1, for example; increased traffic,
and the 2.88% tariff adjustment in July 2007.

Remuneration for Network Usage

This quarter's revenue remained practically stable in comparison
to third quarter 2007 (-BRL4 million).  However, it was down by
15.7% (-BRL112 million) in relation to 2006, due to a 20%
reduction in the local fixed network interconnection fee (TU-
RL), in January 2007, as provided for in the concession
contract.

Data Communication Services

The revenue for the quarter was BRL29 million (+4.0%) higher
than third quarter 2007, while that of the full year was up by
BRL366 million (+14.6%) in relation to 2006.  The performance
highlight was Oi Velox revenue, sold.  In relation to the full
year, however, TUP revenue was practically stable at BRL1.1
billion (-1.0%).

Wireless Services

The gross revenue from wireless services increased by BRL106
million over the quarter (+9.2%) and by BRL962 million on a
year-on-year basis (+27.7%).  The increase in the fourth quarter
2007 was due to the expansion of monthly subscriptions (+12.0%)
and outgoing calls (+15.1%).  In 2007, the revenue from wireless
services represented 17.6% of the consolidated revenue, despite
the 25.1% fall in revenue from handset sales, mainly as a result
an expanded customer base (+2,906 thousand) and the full year
impact of full billing on network usage revenue (+89.2%; BRL544
million), compared with just 5.5 months in the previous year.

During 2007, it is also important to highlight the monthly
subscriptions and outgoing calls revenues, where:

          (a) the convergent plans, focusing high-value
              customers (Oi Conta Total), boosted post-paid
              growth customers (+9.7%).  Such clients
              already reaches 537,000, representing 20.7% of
              the total post-paid customer base;

          (b) the Oi Ligadores campaign, which begun in
              July 2007, increased the rate of expansion in
              the pre-paid segment and was responsible for
              attracting 4.3 million new customers, raising
              the pre-paid customer base to a total of
              13,395 thousand (+25.0% over 2006).  It should
              also be noted that the migration of customers
              to Oi Ligadores base (3.4 million in the year)
              helped to increase the revenues from data/value
              added services, as a result of the fee charged
              to join the offer; revenue from handset sales
              fell by 25.1% in relation to the previous year,
              as a result of the company's policy of selling
              the sim-card alone to the pre-paid segment, as
              part of the company's strategy to reduce
              customer's acquisition cost.

The consolidated revenue from network usage totaled BRL319
million, excluding the BRL206 million (BRL187 million in the
third quarter 2007) received by Oi Móvel from TMAR during the
fourth quarter 2007.  The revenue for the full year was up by
89.2%, as mentioned earlier.  The VUM tariff adjustment
(+1.97%), in July/07, together with the full year
impact of full billing, were the factors affecting the increased
network usage revenue in 2007.

The main reasons for expense increase were higher
Interconnection fees (BRL540 million) and "Provision for Bad
Debts" (BRL174 million), which were partially offset by lower
costs of SMP handsets and other COGS (BRL316 million) and
reduced Other Operating Expenses (Income)
(BRL269 million).

It should be pointed out that, while the full billing system
helped to increase revenue, it also affected the cost side,
increasing this item for the year.  The Provision for Bad Debts,
which was equivalent to 2.5% of the gross revenue for the fourth
quarter 2007 (2.6% for the year), showed an increase of 36.6%
over the year, mainly due to the policy of greater credit
flexibility for the sale of fixed lines.

Interconnection

The 3.9% increase in the cost of interconnection (+BRL32
million), during the quarter, is basically due to increased
fixed to mobile traffic (VC-1, VC-2 e VC-3).

The 19.3% increase for the full year is mainly the result of the
impact of full billing among the mobile operators, implemented
as from July 2006 and therefore in effect for only 5.5 months in
2006.

Personnel

The 73.0% (BRL84 million) increase in personnel expenses during
the quarter was mainly due to the reversal of provisions made in
the third quarter 2007, which had had a positive impact on the
"personnel" expenses for that quarter of BRL60 million.

The full year 2007 saw an increase of 7.1% (BRL46 million), due
to the company's assumption of previously outsourced services in
relation to the Network Management Center (CGR), the operational
start-up of SEREDE (a fully-owned subsidiary of TMAR) in
August 2007.

At the end of 2007, headcount totaled 9,936 (7,098 at the end of
2006).  This increase of 2,838 employees was due to hiring done
for the new subsidiary - SEREDE (1,160 employees at the end of
2007), and additional staff hired in the first quarter 2007 as
the company assumed the responsibility of network management
services.

Cost of SMP Handsets and other COGS (CMV)

There was a reduction of R$13 million during the quarter and of
BRL316 million in relation to the previous full year, due to the
continuing strategy of selling the sim cards alone to the pre-
paid segment.  As a
result of eliminating the subsidy on pre-paid handsets, there
has been a substantial reduction in the customer's acquisition
cost in this segment.

Part of the year-on-year difference relates to the reversal of a
provision for obsolete inventory, to the sum of BRL55 million,
as a result of the fire at the Rio de Janeiro distribution
center, the details of which were provided in the first quarter
2007 report.

Third-Party Services

These expenses grew by 4.6% during the quarter (BRL46 million),
due to increased spending on consultancy services and legal
counseling in relation to litigation proceedings (+BRL10 million
and +BRL19 million, respectively).  On top of this, there was
increased spending on sales commissions (BRL8 million) and data
processing, which were partially offset by reduced spending on
network maintenance.  For the full year 2007, these expenses
were up by BRL99 million.  Contributions to this increase came
from the cost of electricity, arising from a tariff adjustment,
increased power consumption, due to network expansion (broadband
and mobile), increased spending on data processing and other
expenses, the latter arising, basically, from increasing premium
sales to the postpaid segment.

Marketing

During the quarter, there was an increase of 11.8% (BRL8
million), due to more spending on TV coverage. On an annual
basis, there was a decline of 3.2% (BRL10 million), due to
reduced spending on sponsorship and market research, despite the
expense of the campaigns to consolidate the Oi brand and the
sponsorship of the Pan-American Games Rio – 2007 project, during
the first half of 2007.

Provisions for Bad Debts

The Provisions for Bad Debts remained stable in relation to the
level of the previous quarter.  On an annual basis, however,
there was an increase of BRL174 million in comparison with 2006,
mainly reflecting Oi's strategy of implementing a more flexible
credit policy for lower income users of wireline services.

Other Operating Expenses (Income)

The BRL256 million increase in other operating expenses during
the quarter was mainly due to the fact that this item had been
positively affected by certain non-recurrent events during the
third quarter 2007:

          -- A BRL265 million reversal against labor
             contingencies, to bring the balance in line with
             the new assessment of losses in labor claims,
             based on the historical record of effective
             payments;

          -- A supplementary provision of BRL96 million for
             regulatory contingencies, following a more precise
             assessment of liabilities regarding the failure to
             comply with contractual commitments, notably those
             related to the PGMU – General Target Plan for
             Universal Access.

On an annual basis, there was a BRL269 million reduction in
other operating expenses (income) during 2007, mainly due to the
positive non-recurrent events of third quarter 2007, notably the
reversal of the BRL265 million labor contingency mentioned
above.

The consolidated EBITDA for the quarter amounted to BRL1,548
million (-18.9% vs. third quarter 2007), representing a margin
of 34.5%.  However, it should be noted that, in comparison with
the third quarter 2007, that quarter benefited from non-
recurrent events having a net positive impact of BRL229 million,
without which the decline would have been just 7.8%.  A
comparison of the fourth quarter 2007 vs. third quarter 2007
recurring EBITDA margins shows a drop of 3.3 p.p.

The consolidated EBITDA and EBITDA margin declined in the fourth
quarter 2007 basically due to the performance of wireline
services, which felt the impact of increased interconnection
costs (more fixed-to-mobile traffic), Provisions for Bad Debts
(increased sales of fixed lines to lower income customers),
spending on customer care (improved standard of service),
provision for contingencies (tax and labor) and legal costs.

The consolidated EBITDA of TMAR totaled BRL1,557 million (a
margin of 34.8%), bringing the total for the year to BRL6,530
million.  The parent company recorded an EBITDA of BRL1,213
million in the fourth quarter 2007 (a margin of 33.5%), and
accumulated BRL5,385 million for the full year (a margin of
37.7%).  At the mobile services company (TNL-PCS), the EBITDA
for the quarter was BRL352 million, with a
margin of 31.8%, which was stable in relation to the previous
quarter.  The highlight was the accumulated EBITDA for 2007,
which reached a total of BRL1,154 million, 162.9% higher than
that of 2006, with a margin of 27.5% (+15.2 p.p.).  In 2007 the
mobile segment maintained its steady rate of growth in its
customer base, while at the same time broadening its operating
margins, mainly through reducing costs to acquire new customers.

The overall consolidated EBITDA for the year 2007 came to
BRL6,501 million, with a margin of 37.0%, an increase of 6.5%
and 0.8 base points, respectively.  Taking into consideration
the non-recurring adjustments in the year, the margin would have
been 36.0%, showing a stabilization of the consolidated EBITDA
margin.  The highlights were the performances of the data
communication services (Oi Velox) and the mobile services (Oi
Movel), which reached EBITDA margin of 27.5% in 2007.

Due to the declaration of IOC – Interest on Capital on December
2007 (TNL and TMAR) and the exploitation profit (TMAR), the
provision for Income Tax and Social Contribution was positive in
the fourth quarter 2007, making a considerable contribution to
year-end Net Earnings.

Net Financial Income (Expenses)

The consolidated net financial expenses for the fourth quarter
2007 amounted to BRL65 million, an increase of BRL13 million in
comparison with the third quarter 2007.  On an annual basis,
there was a reduction of BRL866 million in relation to the
figure for 2006, as detailed below:

The consolidated financial income was BRL108 million higher than
3Q07, due to a higher average cash balance during the period and
the recording of monetary correction on judicial deposits
against labor and civil litigation (BRL80 million).  There was a
31.0% increase for the full year, due to the higher average
volume of short-term investments in the financial market,
together with the increases due to the monetary correction of
judicial deposits and to financial discounts.

The financial expenses amounted to BRL386 million in the 4Q07
and BRL1,384 million for the full year 2007, an increase of
BRL122 million in the quarter and a reduction of BRL638 million
in relation to the
previous year:

          -- Interest on loans and financing, with expenses
             during the quarter of BRL166 million, was
             BRL12 million higher than in the 3Q07, basically
             due to the greater average debt volume resulting
             from the raising of new funding.  The expenses for
             the full year amounted to BRL651 million, a
             reduction of BRL81 million in relation to 2006,
             largely a reflection of falling interest rates
             during the period.

          -- Foreign exchange impact on loans and financing saw
             a reduction of BRL21 million in the expenses over
             the quarter, and amounted BRL29 million expenses,
             resulting from:

             (a) a net gain of BRL72 million, derived from a
                 foreign exchange gain on the company's debt of
                 BRL74 million, which was partially offset by
                 the appreciation of the real against the US
                 dollar and monetary variation expenses,
                 amounting to BRL2 million;

             (b) Net hedging costs of BRL101 million,
                 represented by expenses of BRL38 million from
                 foreign exchange variations and of BRL63
                 million in interests based on the CDI
                 (Interbank Deposit Certificate) rate.

The net foreign exchange impact on loans and financing for the
full year was an expense of BRL156 million, BRL244 million lower
than in 2006, due to less debt being denominated in foreign
currency.

Other financial expenses for the quarter totaled BRL192 million,
an increase of BRL131 million from 3Q07, largely due to the
recording of the reversal of monetary correction on the
provision for labor contingencies, in the 3Q07, to the sum of
BRL143 million, as well as BRL59 million from PIS and COFINS
taxes on the declaration of ISE during the quarter, partially
offset by a reduction of BRL51 million in other items.  The
reduction of BRL313 million for the full year is largely due to
lower monetary correction on contingencies (BRL269 million),
affected by the BRL143 million reversal of monetary correction
on the provision for labor contingencies, in the 3Q07, and the
lower level of monetary contingencies correction recorded during
the period.

Depreciation/Amortization

Depreciation and amortization totaled BRL649 million in the 4Q07
(-1.4% vs 3Q07) and BRL2,605 million for the full year (-17.2%
vs 2006).  The decline during the year, notably in the area of
fixed telephony, reflects the full depreciation of capital
expenditure carried out in relation to the Plan to Advance the
Meeting of Regulatory Targets (2000/2001).  It should be noted
that the depreciation of fixed telephony assets during the year
was approximately of BRL450/460 million per quarter.

Net Earnings

The consolidated net earnings for the quarter amounted to BRL911
million (BRL2.39 per share and US$1.34/ADR), an increase of
43.0% over the 3Q07, while the full year total was BRL2,358
million (+80.0% vs. 2006).  The main factors supporting this
growth were: higher EBITDA (BRL399 million), lower depreciation
and amortization (BRL542 million) and net financial expenses
(BRL866 million).  These were partially offset by higher income
tax/social contribution expenses
(BRL667 million).  The net earnings of the parent company, TMAR,
amounted to BRL939 million for the quarter (+21.6%) and
BRL2,692 million for the full year (+66.7%).

Oi (TNL PCS) achieved net earnings of BRL216 million for the
quarter (+134.8%) and BRL456 million for the full year
(+230.4%).

Debt

The consolidated net debt was reduced by BRL445 million during
the quarter and by BRL2,202 million during the full financial
year, closing 2007 at BRL2,681 million (41.2% of the EBITDA for
the year).  Of the company's total gross debt (BRL9,390
million), 8.38% is exposed to local currency variations against
the US dollar and the yen.  The average cost of the debt
accumulated during the year, net of the impact of currency
hedging, was 92.5% of the CDI rate.

During the quarter, TMAR raised BRL20 million, BRL11 million of
which was from a private issue of debentures (remunerated
according to the IPCA inflation index + 0.5% p.a.), with a view
to financing the expansion of wireless services in various
locations within the state of Minas Gerais (Projeto Minas
Comunica).

In the previous quarter, Oi (TNL PCS) closed a financing
contract with the BNDES (Brazilian Development Bank) for BRL467
million and drew down BRL290 million (average cost of the TJLP +
4.50% p.a.) in order to finance the expansion and technological
upgrading of Oi's mobile telecommunications network, scheduled
for the period 2006 to 2008.  During the quarter, Oi drew down
another BRL150 million against this facility.  The scheduled
maturity of the company's gross debt is reasonably well
distributed over the next few years, without any concentration
of payments.  The existing cash balance (BRL6,710 million) is
sufficient to cover 98% of the debt coming due up to 2011.

Capital Expenditure

The consolidated capital expenditure during the quarter amounted
to BRL1,026 million, of which BRL689 million (67.2%) was
allocated to wireline telephony and BRL337 million (32.8%) went
into wireless telephony.  The total investment represented a
79.4% increase from 3Q07, due to greater expansion in both the
fixed and mobile areas:

          -- BRL219 million was invested in wireline telephony,
             mostly to expand the network and data communication
             infrastructure, with a view to increase the
             transmission capacity and the broadband platform
             (Oi Velox);

          -- An extra BRL235 million was invested in wireless
             telephony during the quarter, of which
             BRL131 million relates to the acquisition of the
             right to operate in the state of Sao Paulo
             (2G license) and to increase the frequency range
             in certain states in which Oi already operates.

The capital expenditure over the full year amounted to BRL2,328
million, practically the same level as in the previous year
(BRL2,307 million).

Cash Flow

The free cash flow, net of investment, came to BRL629 million
for the quarter and totaled BRL3,330 million for the full year
2007, which was stable in relation to the figure for 2006
(BRL3,250 million).