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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

            Tuesday, March 4, 2008, Vol. 9, No. 45

                            Headlines


A R G E N T I N A

ALITALIA SPA: Lazio Court Says Exclusive Sale Talks Legitimate
ASPIL SA: Files for Reorganization in Court
BANCO HIPOTECARIO: Offers US$865 and EUR855 for Notes Due 2013
BUNGE LTD: Declares US$0.17 Per Share Common Stock Dividend
COHN HNOS: Trustee to Verify Proofs of Claim Until April 8

MANNY S MUSICAL: Trustee to File Individual Reports on May 26
PORTEZUELO SRL: Proofs of Claim Verification Ends on April 17
PUENTE HNOS: Moody's Cuts Insurance Financial Strength to B3
QUIMICA PICHEL: Proofs of Claim Verification Ends on April 23
SOLROCA SA: Proofs of Claim Verification Deadline is April 9

STEINER GODARD: Proofs of Claim Verification is Until May 13
UNION RECIBIDORES: Court Concludes Reorganization
VALEANT PHARMA: Incurs US$20.2 Million Net Loss in Fourth Qtr.


B E R M U D A

SCOTTISH RE: May Sell Life Reinsurance & Wealth Management Units
WARNER CHILCOTT: Earns US$28.9 Million in Year Ended Dec. 31


B R A Z I L

AMERICAN AXLE: Union Members Rally to Preserve Well-Paying Jobs
AMERICAN MEDICAL: Moody's Affirms B1 Corporate Family Rating
DRESSER-RAND: UBS Keeps Neutral Rating on Firm's Shares
FIAT SPA: Government Approves Equal Partnership With Tata Motors
GENERAL MOTORS: To Shut More Plants as UAW Talks Resume

KRATON POLYMERS: Increases U.S. Produce Price Effective April 1
NOVELL INC: Earns US$16.8 Million in Fiscal First Quarter 2008
PROPEX INC: Section 341 Meeting of Creditors Set for March 11
PROPEX INC: Wants Court Nod on Dalton Property Sale Procedures


C A Y M A N  I S L A N D S

ACM BERNSTEIN: Will Hold Final Shareholders Meeting on March 10
ACM HIGH: Final Shareholders Meeting Is on March 10
ACM STRATEGIC: Will Hold Final Shareholders Meeting on March 10
BERNSTEIN OFFSHORE: Sets Final Shareholders Meeting for March 10
MARKET NEUTRAL: Final Shareholders Meeting is on March 10


C H I L E

INTERPUBLIC GROUP: S&P Upgrades Corporate Credit Rating to B+
ROCK-TENN CO: Hikes Recycled Paperboard Price to US$50 Per Ton
SCIENTIFIC GAMES: To Provide Sisal With 25,000 WAVE Terminals


C O L O M B I A

SOLUTIA INC: Can Assume Wal-Mart Contracts Under Terms of Plan
SOLUTIA INC: Court Approves Bayer & Lanxess Claims Settlement
SOLUTIA INC: Court Approves Quinn Emanuel as Conflicts Counsel


C O S T A  R I C A

ALCATEL-LUCENT: State Firm Mulling Co.'s Settlement Proposal


D O M I N I C A N   R E P U B L I C

NATIONAL DISTRICT MUNICIPALITY: May File for Bankruptcy
TRICOM SA: Files for Bankruptcy Protection in New York
TRICOM SA: Case Summary & 14 Largest Unsecured Creditors


E C U A D O R

DEL MONTE: Reports US$53.3 Mil. Net Income in Third Quarter 2008
PETROECUADOR: Says Oil Spill from Broken Pipeline Now Contained


E L  S A L V A D O R

BANCO INDUSTRIAL: Works With Investors to Set Up Salvadorian Arm
HERBALIFE LTD: Canaccord Adams Reaffirms Buy Rating on Firm


G U A T E M A L A

GOODYEAR TIRE: To Supply Tires to Pacific Gas Within Three Years


H O N D U R A S

UNO RESTAURANT: Moody's Drops Corporate Family Rating to Caa2


J A M A I C A

NATIONAL COMMERCIAL: Olint's Injunction Against Bank Extended


M E X I C O

ARROW ELECTRONICS: To Buy Achieva's Components Distribution Biz
CARDTRONICS INC: Posts US$63.3 Million Net Loss in FY 2007
CROWN HOLDINGS: Revises Income Tax Valuation Allowance
EMPRESAS ICA: Incurs MXN1,170 Mln Net Loss in Qtr. Ended Dec. 31
ENERSYS INC: Holders Agree to Sell 5MM Shares to Goldman Sachs


P E R U

CORDIA CORP: Says LatAm Will be 10% of Revenues by Year-End


P U E R T O  R I C O

ELECTRONIC DATA: M. Blackburn Replaces M. Koehler as EMEA Head
NUTRITIONAL SOURCING: Court Approves Sale Bidding Procedure
NUTRITIONAL SOURCING: Exclusive Plan Filing Period Extended
PEP BOYS: Paying US$0.0675 Per Share Dividend Due on April 28
SEARS HOLDINGS: Restoration Deems Merger Proposal Inferior


U R U G U A Y

PERNOD RICARD: Net Sales Up 5.9% in 2007/2008 First Half


V E N E Z U E L A

DELTA AIR: Pilots Union Poses Threat to Northwest Tie-Up
PETROLEOS DE VENEZUELA: Inks New Agreement with Eni
PETROLEOS DE VENEZUELA: Has No Assets in UK, Says Gordon Pollock


X X X X X X

* Global Economy Will Withstand U.S. Downturn, S&P's Report Says
* Large Companies with Insolvent Balance Sheet


                         - - - - -


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

ALITALIA SPA: Lazio Court Says Exclusive Sale Talks Legitimate
--------------------------------------------------------------
The Italian Regional Administration Court of Lazio has confirmed
the legitimacy of the exclusive talks to sell the Italian
government's 49.9% stake in Alitalia S.p.A. to Air France-KLM
S.A., various reports say.

The ruling rejected an appeal filed by AirOne S.p.A. to the
Feb. 20, 2008 decision by the Italian Regional Administration
Court of Lazio that rejected its petition to declare null and
void a Dec. 28, 2007 decision of Italy's Ministry of Economy and
Finance to commence exclusive talks with Air France.

As reported in the TCR-Europe on Jan. 17, 2008, Alitalia and
Italy commenced exclusive sale talks with Air France-KLM.  The
carriers have until mid-March to reach an agreement, which
would be approved by the government.  Air France said it will
seek approval from the new Italian government chosen following
the April 13-14, 2008, snap elections, for any agreement to
acquire Italy's stake in Alitalia.

Air France managing director Pierre Henri Gourgeon that the
exclusive talks may go beyond the April elections due to various
procedural steps, Radiocor relates.

AirOne said it would present a binding offer once it wins its
appeal, adding that its offer would be financially backed by
Intesa Sanpaolo S.p.A., Goldman Sachs Group Inc., Morgan Stanley
and Nomura Holdings Plc.

TPG Inc. and Pirelli & S.p.A. chairman Marco Tronchetti Provera
may join AirOne in its Alitalia bid.  Reuters said MyChef may
also participate in the offer.  AirOne chairman Carlo Toto is
inviting businessmen from the Lombardy region to join the
airline's bid.

                          About Alitalia

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

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

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


ASPIL SA: Files for Reorganization in Court
-------------------------------------------
Aspil S.A. has requested for reorganization approval after
failing to pay its liabilities since Jan. 31, 2008.

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

The case is pending in the National Commercial Court of First
Instance No. 22 in Buenos Aires.  Clerk No. 43 assists the court
in this case.

The debtor can be reached at:

          Aspil S.A.
          Paraguay 3690
          Buenos Aires, Argentina


BANCO HIPOTECARIO: Offers US$865 and EUR855 for Notes Due 2013
--------------------------------------------------------------
Banco Hipotecario S.A. offered US$865 per US$1,000 to holders of
its U.S. Dollar-Denominated notes due 2013 and EUR855 per
EUR1,000 to holders of its Euro-Denominated notes due 2013,
Business News Americas reports.

As reported by the Troubled Company Reporter-Latin America on
Jan. 31, 2008, Banco Hipotecario commenced a tender offer to
purchase for cash up to US$56 million aggregate principal amount
of its U.S. Dollar-Denominated Notes due 2013 and up to the
equivalent of US$56 million aggregate principal amount of its
Euro-Denominated Notes due 2013.   The tender offer expired on
Feb. 27.

In an update, TCR-LA reported on March 3 that Banco Hipotecario
received aggregate tenders for a total of of US$61,053,602,
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).

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, while Global Bondholder
Services Corporation acted as the Information Agent and
Depositary.

Banco Hipotecario told BNamericas that “the transaction
indicated its solvency and financial flexibility to complete
liability management initiatives successfully during a period of
volatile market conditions.”

Headquartered in Buenos Aires, Argentina, Banco Hipotecario SA
-- http://www.hipotecario.com.ar-- is an Argentinean commercial
bank and specialty mortgage provider.  Banco Hipotecario'
business lines include credit lines for consumers, short-term
financing for exporting companies, factoring services, deposit
accounts, purchase and sale of foreign currency, custodial
services, safe deposit box rentals, payroll bank accounts,
securities brokerage services and sales of insurance through
authorized agents and companies.  The bank launched this new
series of products and services as an alternative to its
mortgage loans business, which as a result of the economic
crisis, came to a temporary halt in 2002.  In late 2003, and in
the light of the favorable trends shown by economic variables,
Banco Hipotecario started to offer new housing mortgage loans.
The bank's subsidiaries consist of BHN Sociedad de Inversion
Sociedad Anonima.

                        *     *     *

In November 2007, Moody's Investors Service assigned a Ba1
global local currency deposit rating to Banco Hipotecario SA.


BUNGE LTD: Declares US$0.17 Per Share Common Stock Dividend
-----------------------------------------------------------
Bunge Limited has declared a regular quarterly cash dividend of
US$0.17 per share of common stock.  The dividend is payable on
June 2, 2008, to shareholders of record as of May 19, 2008.

The company declared a quarterly cash dividend of US$1.21875 per
share on its 4.875% cumulative convertible perpetual preference
shares, payable on June 1, 2008, to shareholders of record as of
May 15, 2008.

The company also declared a quarterly cash dividend of
US$12.8125 per share on its 5.125% cumulative mandatory
convertible preference shares payable on June 1, 2008, to
shareholders of record as of May 15, 2008.

Headquartered in White Plains, New York, Bunge Ltd. (NYSE: BG)
is a global agribusiness company with operations primarily in
commodity grain processing and fertilizer production.  It has
operations in Argentina.

                        *      *      *

As reported in the Troubled Company Reporter-Latin America on
Nov. 8, 2007, Standard & Poor's Ratings Services has assigned
its 'BB' rating to Bunge Ltd.'s US$750 million of 5.125%
cumulative mandatory convertible preference shares.  At the same
time, S&P affirmed its 'BBB-' long-term corporate credit and
other ratings on Bunge.  The outlook is stable.  Pro forma for
the new issue, about US$4.2 billion of debt and preference
shares of the company are rated.  Proceeds from this issue will
be used to repay debt and for general corporate purposes.


COHN HNOS: Trustee to Verify Proofs of Claim Until April 8
----------------------------------------------------------
Benjamin Ernesto Rubio, the court-appointed trustee for Cohn
Hnos. S.A.'s reorganization proceeding, will be verifying
creditors' proofs of claim until April 8, 2008.

Mr. Rubio will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance in Mar del Plata, 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 Cohn Hnos. 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  Cohn Hnos.'
accounting and banking records will be submitted in court.

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

The debtor can be reached at:

        Cohn Hnos. S.A.
        Alvarado 5326, Mar del Plata
        Buenos Aires, Argentina

The trustee can be reached at:

        Benjamin Ernesto Rubio
        25 de Mayo 1980, Mar del Plata
        Buenos Aires, Argentina


MANNY S MUSICAL: Trustee to File Individual Reports on May 26
-------------------------------------------------------------
Aldo Ruben Maggiolo, the court-appointed trustee for Manny s
Musical SA's bankruptcy proceeding, will present the validated
claims as individual reports in the National Commercial Court of
First Instance in Buenos Aires on May 26, 2008.

Mr. Maggiolo will be verifying creditors' proofs of claim until
April 11, 2008.

A general report that contains an audit of Manny s Musical's
accounting and banking records will be submitted in court on
July 10, 2008.

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

The debtor can be reached at:

         Manny s Musical SA
         Santo Domingo 3076/78
         Buenos Aires, Argentina

The trustee can be reached at:

         Aldo Maggiolo
         Paraguay 610
         Buenos Aires, Argentina


PORTEZUELO SRL: Proofs of Claim Verification Ends on April 17
-------------------------------------------------------------
Juan Manuel Vila Perbeils, the court-appointed trustee for
Portezuelo S.R.L.'s bankruptcy proceeding, will be verifying
creditors' proofs of claim until April 17, 2008.

Mr. Perbeils will present the validated claims in court as
individual reports on May 30, 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 Portezuelo 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 Portezuelo's
accounting and banking records will be submitted in court on
July 28, 2008.

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

The trustee can be reached at:

         Juan Manuel Vila Perbeils
         Vidal 1670
         Buenos Aires, Argentina


PUENTE HNOS: Moody's Cuts Insurance Financial Strength to B3
------------------------------------------------------------
Moody's Investors Service has downgraded Puente Hnos. SGR's
global local-currency insurance financial strength rating to B3
from B2, and to Baa1.ar from A1.ar on Argentina's national
scale.  Both ratings carry a developing outlook.  This concludes
the review for possible downgrade initiated on Nov. 9, 2007,
following a resolution issued by the Argentine Undersecretary of
Small and Medium Size Businesses (SePyme) that revoked Puente
SGR's authorization to operate in the financial guaranty market
and imposed the liquidation of the company.

According to Moody's, the downgrade is based on the negative
impact the regulatory action has had on Puente SGR's business
and financial profile, as well as the uncertainty surrounding
the unresolved status of the regulatory resolution.  Although
Puente SGR filed a "petition to revoke" the liquidation, and
-under local administrative proceedings—has been maintaining its
operations, the company's new issuance of guarantees has been
very limited since the regulatory resolution.  In addition, the
rating agency said that the company's amount of inforce
guarantees outstanding was reduced as a result of the
regulator's action.

On the financial profile, Moody's added that Puente SGR's
investment quality worsened in the last quarter of 2007 as
seen by all invested assets now being below-investment grade and
that the company could not renew the reinsurance program with a
state-sponsored reinsurance entity.  Finally, Puente SGR's
client concentration in its top 10 largest single risks has
increased somewhat at the end of 2007 relative to 2006.

The rating agency went on to say that there continues to be much
uncertainty about the final outcome of the regulatory
resolution, which may now be transferred to the relevant
Judicial Authority.  Moody's added that the liquidation process
for Puente SGR could potentially have additional adverse effects
on the company's financial and business profiles.  The level of
uncertainty is quite high because there has never been a
liquidation process for a financial guarantor in the country as
of yet, and therefore it is difficult to anticipate the next
actions for the company and their potential impact.   As a
result of this uncertainty, the outlook is "developing" which
reflects that the future credit profile of Puente SGR is highly
dependent on the final decision of the regulator and/or the
Judicial Authority

Based in Buenos Aires, Puente Hnos. SGR is a small financial
guarantor which reported total assets of ARS33.8 million as of
the third quarter of 2007, ended Sept. 30.  Outstanding
guarantees were about ARS48 million and the company posted a net
profit of ARS0.9 million for the quarter ended Sept. 30, 2007.


QUIMICA PICHEL: Proofs of Claim Verification Ends on April 23
-------------------------------------------------------------
Cecilia Montelvetti, the court-appointed trustee for Quimica
Pichel SA's bankruptcy proceeding, will be verifying creditors'
proofs of claim until April 23, 2008.

Ms. Montelvetti will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 15 in Buenos Aires, with the assistance of Clerk
No. 30, 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 Quimica Pichel 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 Quimica Pichel's
accounting and banking records will be submitted in court.

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

The debtor can be reached at:

          Quimica Pichel SA
          Melian 3857
          Buenos Aires, Argentina

The trustee can be reached at:

          Cecilia Montelvetti
          Urquiza 2134
          Buenos Aires, Argentina


SOLROCA SA: Proofs of Claim Verification Deadline is April 9
------------------------------------------------------------
Marcelo Gabriel Dborkin, the court-appointed trustee for Solroca
S.A.'s bankruptcy proceeding, will be verifying creditors'
proofs of claim until April 9, 2008.

Mr. Dborkin will present the validated claims in court as
individual reports on May 22, 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 Solroca 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 Solroca's accounting
and banking records will be submitted in court on July 4, 2008.

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

The trustee can be reached at:

         Marcelo Gabriel Dborkin
         Avenida Callao 295
         Buenos Aires, Argentina


STEINER GODARD: Proofs of Claim Verification is Until May 13
------------------------------------------------------------
Raul Alberto Sena, the court-appointed trustee for Steiner
Godard S.A.'s bankruptcy proceeding, will be verifying
creditors' proofs of claim until May 13, 2008.

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

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

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

The trustee can be reached at:

          Raul Alberto Sena
          Bartolome Mitre 734
          Buenos Aires, Argentina


UNION RECIBIDORES: Court Concludes Reorganization
-------------------------------------------------
Union Recibidores de Granos y Anexos de la Republica Argentina
concluded its reorganization process, according to data released
by Infobae on its Web site.  The closure came after the National
Commercial Court of First Instance in Buenos Aires homologated
the debt plan signed between the company and its creditors.


VALEANT PHARMA: Incurs US$20.2 Million Net Loss in Fourth Qtr.
--------------------------------------------------------------
Valeant Pharmaceuticals International has posted US$20.2 million
of net loss for the three months ended Dec. 31, 2007, compared
to US$21.7 million of net loss for the same period in 2006.  For
the full year of 2007, the company incurred US$7.2 million of
net loss compared to US$56.5 million of net loss in 2006.

“Valeant’s financial performance in the fourth quarter and the
full year is not acceptable either to me or to our investors,”
said J. Michael Pearson, chief executive officer and chairman.  
“These results are the direct impact from trying to operate in
too many geographies, with too many businesses and too many
products.  We are completing a comprehensive strategic review of
the Company and expect to be in a position to talk more about
our plan during the last week of March.”

                            Revenues

Product sales decreased four percent in the fourth quarter of
2007 compared to the same period last year.  Since the 2006
fourth quarter, the company has divested Reptilase product
rights, Solcoseryl product rights in Japan and the ophthalmic
business in the Netherlands.

North America product sales increased one percent in the 2007
fourth quarter, primarily due to increased sales of Cesamet(R),
Zelapar(R) and Kinerase(R), offset by declines in sales of
Efudex(R), which largely reflects the impact of stocking for the
product’s authorized generic launch in the fourth quarter of
2006.

Sales in the International region declined twenty-three percent
in the 2007 fourth quarter compared to the same period last
year, due to continuing challenges in Mexico.  This included
increased accounting reserves for future product returns and
credit memos, which impacted sales as contra revenue.

Sales in the Europe, Middle East and Africa region increased
nine percent in the 2007 fourth quarter compared to the same
period last year, primarily due to the effects of foreign
currency translation.  The EMEA region also benefited from
increased sales of promoted products in Central and Eastern
Europe and new products acquired or launched in 2007.

Alliance revenue decreased eighteen percent in the 2007 fourth
quarter compared to the same period last year.  The decline
reflects competitive dynamics in the ribavirin market in Europe
and Japan and the cessation of ribavirin royalties from Roche as
a result of a loss of patent coverage in Europe.

                      Continuing Operations

The company’s gross margin on product sales was 70 percent in
the 2007 fourth quarter as compared to 72 percent reported in
the 2006 fourth quarter.

Selling expense was 31 percent of product sales in the 2007
fourth quarter as compared to 27 percent recorded in the
comparable period last year.  This increase was due to bad debt
provisions in the EMEA and International regions and increased
promotional activities relating to the newly launched products
in Central Europe.  General and administrative expenses were 13
percent of product sales in the 2007 fourth quarter, the same
percentage as in 2006.

Research and development costs remained essentially flat as a
percentage of sales and were US$29.4 million in the 2007 fourth
quarter, compared to US$31.4 million in the same period in 2006.

                     Discontinued Operations

Valeant announced an agreement to sell Infergen(R) on Dec. 20,
2007.  The financial results for Infergen are reflected as
discontinued operations and prior periods were restated
accordingly. Valeant closed the sale in January 2008.

                          Divestitures

Valeant has signed a definitive agreement to sell certain
subsidiaries and product rights in certain Asian markets
including Singapore, the Philippines, Taiwan, Korea, and China.
The transaction is expected to close in March 2008.

                     Share Repurchase Update

Under the company’s repurchase program, Valeant repurchased 1.8
million shares of its common stock in the 2007 fourth quarter
for approximately US$20 million.  The fourth quarter activity
brings the total shares repurchased in 2007 to 6.5 million
shares for approximately US$100 million.

                 About Valeant Pharmaceuticals

Headquartered in Costa Mesa, California, Valeant Pharmaceuticals
International -- http://www.valeant.com/-- is a global
specialty pharmaceutical company with USUS$823 million of 2005
revenues.  It has offices in Argentina, Singapore and Taiwan.

                        *     *     *

In January 2007, Moody's Investors Service confirmed the ratings
of Valeant, including the B2 Corporate Family Rating, and
concluded the rating review for possible downgrade, which was
first initiated on Oct. 23, 2006.  Valeant's rating outlook is
stable, Moody's said.



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

SCOTTISH RE: May Sell Life Reinsurance & Wealth Management Units
----------------------------------------------------------------
Scottish Re Group Ltd. told The Royal Gazette that it may sell
its international life reinsurance and wealth management units.

According to The Gazette, Scottish Re wants to cut costs after
suffering mortgage-related losses and a credit rating downgrade.

Scottish Re told The Gazette that it is losing money from
investments tied to subprime and "Alt-A" residential mortgages.

A Jan. 31 downgrade by Standard & Poor's will also make it
harder for the company to compete and to expand its core life
reinsurance business, The Gazette says, citing Scottish Re.

Scottish Re told The Gazette that it will continue concentrating
on its North American life reinsurance business, "through
strategic alliances or other means and cut costs to preserve
capital and liquidity.”

Scottish Re said it set up a financial incentive program to keep
"essential" employees, The Gazette adds.

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

                         *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 4, 2008, Standard & Poor's Ratings Services lowered its
counterparty credit rating on Scottish Re Group Ltd. to 'B' from
'B+'.   At the same time, it lowered its counterparty credit and
financial
strength ratings on Scottish Re's operating companies to 'BB'
from 'BB+' and also lowered the ratings on all these companies'
dependent unwrapped securitized deals by one notch.  In
addition, S&P placed the ratings on all these companies on
CreditWatch with negative implications.

As reported in the Troubled Company Reporter-Latin America on
Feb. 19, 2008, Moody's Investors Service placed Scottish Re
Group Limited's Senior unsecured  shelf of (P)Ba3; subordinate
shelf of (P)B1; junior subordinate shelf of (P)B1; preferred
stock of B2; and preferred stock shelf of (P)B2 ratings on
review for downgrade.


WARNER CHILCOTT: Earns US$28.9 Million in Year Ended Dec. 31
------------------------------------------------------------
Warner Chilcott Limited reported its results for the quarter and
year ended Dec. 31, 2007.  Revenue in the quarter ended
Dec. 31, 2007, totaled US$227.7 million, an increase of 10.3%,
over the prior year quarter.  Revenue for the year ended
Dec. 31, 2007, totaled US$899.6 million, an increase of 19.2%
over the prior year. The primary drivers of the increase in
revenue for both periods were the net sales of two products,
LOESTRIN 24 FE and TACLONEX, which together contributed US$27.6
million and US$171.8 million of revenue growth in the quarter
and year ended Dec. 31, 2007, respectively, compared to the
prior year periods.

The company reported net income of US$19.7 million in the
quarter ended Dec. 31, 2007, compared with a net loss of
US$8.5 million in the prior year quarter.  Cash net income in
the quarter ended Dec. 31, 2007 was US$73.9 million.  Reported
net income was US$28.9 million in the year ended Dec. 31, 2007.

                            Revenue

Revenue in the quarter ended Dec. 31, 2007, was US$227.7
million, an increase of US$21.3 million, or 10.3%, over the
prior year quarter.  The primary drivers of the increase in
revenue, as compared to the prior year quarter, were the net
sales of two products, LOESTRIN 24 FE and TACLONEX.

Sales of Warner Chilcott's oral contraceptive products increased
US$8.4 million, or 13.9%, in the quarter ended
Dec. 31, 2007, compared with the prior year quarter.  LOESTRIN
24 FE generated revenues of US$41.6 million in the quarter ended
Dec. 31, 2007, compared to US$21.5 million in the prior year
quarter.  The increase in revenues was primarily due to an
increase of 93.8% in filled prescriptions for LOESTRIN 24 FE
compared to the prior year quarter.  Filled prescriptions of
LOESTRIN 24 FE increased 6.5% sequentially in the quarter ended
Dec. 31, 2007, compared to the quarter ended Sept. 30, 2007.  
The company introduced and began commercial sales of FEMCON FE
in the second half of 2006, but did not initiate promotional
efforts in support of the product until April 2007.  Beginning
in April 2007, FEMCON FE became a promotional priority for its
sales force and generated revenues of US$11.6 million in the
quarter ended Dec. 31, 2007, an increase of US$4.1 million, or
53.3%, versus the prior year quarter.  The increase in revenues
was primarily due to a 200% increase in filled prescriptions for
FEMCON FE compared to the prior year quarter.  Filled
prescriptions of FEMCON FE increased 15% sequentially in the
quarter ended Dec. 31, 2007 compared to the quarter ended
Sept. 30, 2007.  Net sales of ESTROSTEP FE decreased US$13.9
million, or 58%, in the quarter ended Dec. 31, 2007, compared to
the prior year quarter.  The decrease in revenues was due to the
introduction of generic versions of ESTROSTEP FE beginning in
late October 2007, which lowered filled prescriptions of
ESTROSTEP FE by 60.6% versus the prior year quarter.  At the
time of the launch of a generic version of ESTROSTEP FE, Warner
Chilcott partnered with Watson Pharma, Inc. to launch Tilia(TM)
Fe, an authorized generic version of ESTROSTEP FE.  OVCON net
sales declined US$1.9 million, or 37.2%, in the quarter ended
Dec. 31, 2007, compared with the prior year quarter.  The
decline in OVCON revenues was primarily due to the introduction
of generic versions of OVCON 35 beginning in late October 2006,
which led to an 83.3% decline in filled prescriptions in the
quarter ended Dec. 31, 2007, compared to the prior year quarter.  
This decline was partially offset by price increases.

Sales of Warner Chilcott's dermatology products increased
US$12.6 million, or 14.3%, in the quarter ended
Dec. 31, 2007, compared to the prior year quarter, primarily due
to a US$7.5 million increase in TACLONEX sales.  Filled
prescriptions for TACLONEX increased 33.8% compared to the prior
year quarter.  Sales of DORYX increased US$4.5 million, or
16.4%, in the quarter ended Dec. 31, 2007, compared with the
prior year quarter due to increased demand and higher average
selling prices. DORYX prescriptions had been declining through
the first half of 2007.  In January 2007, the company took steps
to increase its Dermatology sales force's emphasis on DORYX and
those changes resulted in filled prescriptions of DORYX
increasing 4.8% in the quarter ended Dec. 31, 2007, compared to
the prior year quarter.  Sales of DOVONEX increased US$0.6
million, or 1.6%, in the quarter ended Dec. 31, 2007, compared
with the prior year quarter as price increases more than offset
a 23% decline in filled prescriptions.

Sales of the company's hormone therapy products increased
US$2.5 million, or 6.4%, in the quarter ended Dec. 31, 2007,
compared with the prior year quarter.  FEMHRT filled
prescriptions were down 12.9% in the quarter ended
Dec. 31, 2007, compared with the prior year quarter.  The impact
of this decrease was partially offset by higher selling prices.
Sales of ESTRACE CREAM increased due to higher average selling
prices, although filled prescriptions were flat in the quarter
ended Dec. 31, 2007, compared with the prior year quarter.

                         Cost of Sales

Cost of sales increased US$0.1 million, or 0.1%, in the quarter
ended Dec. 31, 2007, compared with the prior year quarter.  The
gross profit margin, as a percentage of total revenue, increased
to 80.8% in the current year quarter from 78.9% in the prior
year quarter.  The gross profit margins, as a percentage of
total revenue, fluctuate due to a number of factors, primarily
the mix of products sold.

      Selling, General and Administrative (SG&A) Expenses

SG&A expenses for the quarter ended Dec. 31, 2007, were
US$57 million, an increase of US$2.1 million, or 3.7%, from
US$54.9 million in the prior year quarter.  Advertising and
promotion expenses for the quarter ended Dec. 31, 2007,
decreased US$1.5 million, or 8.8%, compared with the prior year
quarter.  The decrease was primarily due to product launch
expenses incurred in the quarter ended Dec. 31, 2006 related to
LOESTRIN 24 FE and TACLONEX, offset partially by an increase in
direct-to-consumer spending for LOESTRIN 24 FE in the quarter
ended Dec. 31, 2007.  Selling and distribution expenses for the
quarter ended Dec. 31, 2007, increased US$2.7 million, or 13.2%,
over the prior year quarter primarily due to the expansion of
the company's field sales forces in the first half of 2007 to
support the initiation of promotional activities for FEMCON FE.
General, administrative and other (G&A) expenses in the quarter
ended Dec. 31, 2007, increased US$0.9 million, or 5%, over the
prior year quarter.  The increase in G&A expenses was primarily
due to increases in compensation expense related to annual
salary increases.

                 Research and Development (R&D)

Warner Chilcott's investment in R&D for the quarter ended
Dec. 31, 2007 was US$11.7 million, an increase of US$4.3
million, or 59.5%, compared with the prior year quarter.  In
November 2007, the company entered into an agreement with
NexMed, Inc.  Under the terms of the agreement, Warner Chilcott
obtained the exclusive U.S. rights to NexMed's topically applied
alprostadil cream for the treatment of erectile dysfunction.  
The company paid a license fee of US$0.5 million which was
recognized in R&D expense in the fourth quarter of 2007.  The
increase in its R&D activities, excluding the US$0.5 million
payment to NexMed, was US$3.8 million, or 52.7%, which was
mainly due to costs incurred in connection with clinical studies
for two new oral contraceptives.  The company completed the
enrollment of the first clinical study for a low-dose oral
contraceptive in July 2007 and completed enrollment of another
clinical study for an oral contraceptive in Dec ember 2007.

                       Net Interest Expense

Interest expense, less interest income (Net Interest Expense)
for the quarter ended Dec. 31, 2007 was US$27.3 million, a
decrease of US$32.9 million, or 54.7%, from US$60.2 million in
the prior year quarter.  The quarter ended Dec. 31, 2007,
included a US$1.6 million write-off of deferred loan costs
associated with an optional prepayment of US$90 million under
the company's senior secured credit facility. In the quarter
ended Dec. 31, 2006, the company paid a premium in the amount of
US$18.4 million in connection with the optional redemption of
US$210 million of its 8.75% Senior Subordinated Notes.  As a
result of the optional redemption, the quarter ended
Dec. 31, 2006, included an US$8 million write-off of deferred
loan costs associated with the Notes.  The quarter ended
Dec. 31, 2006, also included a US$1.1 million write- off of
deferred loan costs associated with an optional prepayment of
US$50 million under the senior secured credit facility.  
Excluding the premium payment and the write-offs of deferred
loan costs, Net Interest Expense decreased US$7 million, or
21.7%, in the current quarter.  The decrease was primarily the
result of reductions in outstanding debt which reduced the
weighted average debt outstanding in the quarter ended
Dec. 31, 2007, as compared to the prior year quarter.  Over the
course of 2007, Warner Chilcott made optional and mandatory
principal repayments of term debt totaling US$350.5 million
using free cash flow and cash on hand.

                          Income taxes

Tha company's effective tax rates for the quarter and year ended
Dec. 31, 2007 was 38.3% and 38.9%, respectively.  On
Feb. 25, 2008, the company's US operating entities entered into
an Advanced Pricing Agreement (APA) with the Internal Revenue
Service covering the calendar years 2006 through 2010.  The APA
is an agreement with the IRS that specifies the agreed upon
terms under which the company's U.S. entities are compensated
for services provided on behalf of its non-U.S. entities.  The
APA provides the company with greater certainty with respect to
the mix of its pre-tax income in the various tax jurisdictions
in which it operates.

                 Net Income and Cash Net Income

For the quarter ended Dec. 31, 2007, reported net income was
US$19.7 million and cash net income was US$73.9 million, based
on 250.5 million diluted Class A common shares outstanding.  In
arriving at cash net income, the company add back the after-tax
impact of the amortization of intangible assets and the
amortization and write-off of deferred financing costs.  These
items are tax-effected at the estimated marginal rates
attributable to them.  In the quarter ended Dec. 31, 2007, the
marginal tax rate associated with the amortization of intangible
assets was 8.8% and the marginal tax rate for amortization and
write-off of deferred financing costs was 8.9%.

            Liquidity, Balance Sheet and Cash Flows

As of Dec. 31, 2007, Warner Chilcott's cash and cash equivalents
totaled US$30.8 million and total debt outstanding was
US$1,200.2 million, a decrease of US$350.5 million in total debt
outstanding, compared to US$1,550.7 million as of
Dec. 31, 2006.  There were no borrowings outstanding under the
revolving portion of the company's senior secured credit
facility.  Warner Chilcott generated US$105.8 million of cash
from operating activities in the quarter ended Dec. 31, 2007,
compared with US$70.9 million in the prior year quarter, an
increase of US$34.9 million, or 49.2%. Net income for the
quarter ended Dec. 31, 2007 increased by US$28.2 million from an
US$8.5 million net loss in the prior year quarter.

                     About Warner Chilcott

Headquartered in Hamilton, Bermuda, Warner Chilcott Ltd. --
http://www.warnerchilcott.com/-- is the holding company for a  
host of pharmaceutical makers.  Women's health care products,
including hormone therapies (femhrt and Estrace Cream) and
contraceptives (Estrostep, Loestrin, and OvCon), are the
company's largest segment.  Other products include dermatology
treatments for acne (Doryx) and psoriasis (Dovonex and
Taclonex).  US subsidiary Warner Chilcott Inc. makes
prescription drugs for dermatology and women's health; other
subsidiaries provide services in data management systems,
pharmaceutical development, manufacturing, and chemical
development.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Jan. 8, 2008, Standard & Poor's Ratings Services revised its
outlook on specialty drug manufacturer Warner Chilcott Corp.,
Warner Chilcott Limited's subsidiary, to positive from stable.
The ratings, including B+ corporate credit rating, were
affirmed.  "The outlook revision on the company reflects its
solid operational track record and improving financial profile
over the past two years," said S&P's credit analyst Arthur Wong.



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

AMERICAN AXLE: Union Members Rally to Preserve Well-Paying Jobs
---------------------------------------------------------------
United Auto Workers union members on strike at American Axle &
Manufacturing Inc. are fighting to preserve well-paying U.S.
manufacturing jobs at the company.

"Our union is a responsible organization, and we've worked
through complex problems at Chrysler LLC, Ford Motor Co.,
General Motors Corp., Delphi Corp., Dana Corp. and other
companies," UAW President Ron Gettelfinger said.  "But
negotiations can't be a one-way street."

"We have repeatedly proven that we will work with this company,
during these negotiations and during previous negotiations," UAW
Vice President Jimmy Settles, who directs the union's American
Axle Department, said.

"The plain fact is, the company has not appropriately responded
to our significant and serious proposals, and that's what caused
this labor dispute," Erv Heidbrink, president of UAW Local 2093
said, representing some 800 UAW members at American Axle's
manufacturing facility in Three Rivers, Michigan.

"Nobody likes a strike," Mr. Heidbrink said, "but the company
continues to make unreasonable and unnecessary demands which
attack our wages, pensions and health care -– and they haven't
provided us the information we need to evaluate their proposals.

"Our members are getting terrific support from all over the UAW
and we're standing strong," Mr. Heidbrink said.  "We're ready
for serious bargaining at any time, and we want to get this
dispute resolved as soon as we can."

American Axle was created in 1994 when GM spun off five U.S.
plants making axles and drive line components, employing
approximately 6,500 UAW members.

Since 1994 industry-leading quality and greatly increased
productivity in UAW-represented facilities has created
significant profits for AAM, leading to expansion of the company
to 29 facilities worldwide.  But operations at facilities in
North America covered by the UAW American Axle master agreement
have been reduced, now employing approximately 3,500 workers.

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

                          *     *     *

As reported in the Troubled Company Reporter on Feb. 28, 2008,
Standard & Poor's Ratings Services said that its ratings on
American Axle and Manufacturing Holdings Inc. (BB/Negative/--)
are not immediately affected by reports that the UAW elected to
conduct a work stoppage at the expiration of its four-year
master labor agreement with American Axle.  

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


AMERICAN MEDICAL: Moody's Affirms B1 Corporate Family Rating
------------------------------------------------------------
Moody's Investors Service affirmed the B1 corporate family and
probability of default rating of American Medical Systems
Holdings, Inc.'s but changed the outlook to negative from
stable.  Concurrently, Moody's downgraded the company's
liquidity rating to SGL 3 from SGL 2.  Notwithstanding improved
performance in the fourth quarter of 2007, the change in outlook
to negative reflects underperformance in recent quarters and
weaker than anticipated credit metrics, as well as senior
management uncertainties following the resignation of the former
Chief Executive Officer in January 2008.  The negative ratings
outlook also reflects minimal tolerance to absorb adverse
fluctuations within the current rating category, the ongoing
potential for execution risk, as well as Moody's expectation of
limited cushions under the company's revised financial
covenants.

The SGL-3 Speculative Grade Liquidity rating reflects Moody's
expectation of adequate near term liquidity.  Moody's
expectation is that internally generated cash flow, along with
cash on hand, should be sufficient to fund the company's ongoing
operational needs, capital expenditures and modest mandatory
debt amortization over the next four quarters.

The ratings are constrained by high ongoing financial leverage
following the 2006 debt-financed acquisition of Laserscope, the
absence of scale relative to larger competitors and the
company's acquisitive growth strategy.  The ratings benefit from
organic double digit growth rates in revenue across most product
lines and relatively low maintenance capital expenditures, which
give rise to substantively positive free cash flow generation in
relation to debt levels.  Also, despite continuing integration
challenges and increased sales and marketing costs with respect
to Laserscope, the potential for incremental savings in raw
materials and manufacturing efficiencies remains.

Moody's affirmed these ratings:

  -- Corporate Family Rating, rated B1;

  -- Probability of Default Rating, rated B1;

  -- US$65 million senior secured revolver due 2012, rated Ba2
     (LGD2, 21%);

  -- US$314 million senior secured term loan B due 2012, rated
     Ba2 (LGD2, 21%);

  -- US$374 million convertible senior subordinated notes due
     2036, rated B3 (LGD5, 77%);

The ratings outlook is negative.

Moody's also downgraded the Speculative Grade Liquidity Rating
to SGL 3 from SGL 2.

         About American Medical Systems Holdings Inc.

Based in Minnetonka, Minnesota, American Medical Systems
Holdings Inc. -- http://www.americanmedicalsystems.com/--
(NASDAQ: AMMD) develops and delivers medical devices and
procedures to cure erectile dysfunction, benign prostatic
hyperplasia, incontinence, menorrhagia, prolapse and other
pelvic disorders in men and women pelvic health products for
both men and women.  AMS has operations in Australia, Austria,
Brazil, Canada, Deutschland, Benelux, France, Iberica, Portugal,
the United Kingdom, and the USA.


DRESSER-RAND: UBS Keeps Neutral Rating on Firm's Shares
-------------------------------------------------------
UBS analysts have kept their "neutral" rating on Dresser-Rand
Group's shares, Newratings.com reports.

Newratings.com relates that the target price for Dresser-Rand's
shares was decreased to US$40 from US$44.

UBS said in a research note that Dresser-Rand's fourth quarter
earnings per share didn't reach estimates and the consensus.  

UBS told Newratings.com that the “shortfall was on account of
delayed Aftermarket orders.”

The earnings per share estimates for 2008 was decreased to
US$2.00 from US$2.05, Newratings.com states.

Dresser-Rand Group Inc. (NYSE: DRC) is among the largest
suppliers of rotating equipment solutions to the worldwide oil,
gas, petrochemical, and process industries.  It operates
manufacturing facilities in the United States, France, Germany,
Norway, India, and Brazil, and maintains a network of 24 service
and support centers covering 105 countries.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Sept. 7, 2007, Standard & Poor's Ratings Services assigned its
bank loan and recovery ratings to the US$500 million senior
secured revolving credit facility due 2012 of Dresser-Rand Group
Inc. (BB-/Stable/--).   The 'BB+' rating, and '1' recovery
rating, indicate expectation of very high (90%-100%) recovery in
the event of a payment default.


FIAT SPA: Government Approves Equal Partnership With Tata Motors
----------------------------------------------------------------
Partners Fiat Group Automobiles S.p.A and Tata Motors Ltd's
joint venture, Fiat India Automobiles Pvt Ltd, have been given
permission by the Maharashtra Government to restructure the
present 51:49 equity to an equal partnership with each one
holding a 50:50 share.  

Fiat SpA and Tata Motors have committed to invest an estimated
amount of RS4,000 crore to be delivered in phases depending on
the requirements.  The project aims to manufacture cars for the
two companies, Fiat engines and power trains for the local
market and for the global market in the future.

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


GENERAL MOTORS: To Shut More Plants as UAW Talks Resume
-------------------------------------------------------
Two more General Motors Corp. plants are likely to shutter this
week as supplier American Axle & Manufacturing Inc. continues to
negotiate with United Auto Workers union workers on strike, Tom
Krisher of The Associated Press reports.

As reported in the Troubled Company Reporter on Feb. 29, 2008,
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.

On Friday, GM production factories in Flint, Michigan, Fort
Wayne, Indiana, and Oshawa, Ontario, were idled after the second
shift, displacing a total of 9,503 hourly and salaried workers.

A list of impacted facilities is available at
http://bankrupt.com/misc/GMImpactedPlants_5pm_feb29.pdf

As previously reported, UAW 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.

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.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 28, 2008, Fitch Ratings has affirmed the Issuer Default
Rating of General Motors at 'B', with a Rating Outlook Negative.

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

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


KRATON POLYMERS: Increases U.S. Produce Price Effective April 1
---------------------------------------------------------------
Kraton Polymers LLC has experienced unprecedented cost increases
associated with energy, raw materials, packaging, and logistics
costs throughout 2007.

In the first quarter of 2008 both crude oil and butadiene
monomer are moving to new record price levels, while styrene
monomer and other energy related costs are continuing to
increase as well.

As a result of these economic realities, effective
April 1, 2008, the company is implementing a general price
increase of 10 cents per pound on SBS based polymers and
compounds in the North American market.

Based in Houston, Texas, Kraton Polymers LLC --
http://www.kraton.com/-- produces styrenic block copolymers.
SBCs are highly-engineered thermoplastic elastomers, which
enhance the performance of numerous products by delivering a
variety of attributes, including greater flexibility,
resilience, strength, durability and processability.  Kraton
polymers are used in a wide range of applications including
adhesives, coatings, consumer and personal care products,
sealants, lubricants, medical, packaging, automotive, paving,
roofing, and footwear products.  Kraton has the leading position
in nearly all of its core markets and is the only producer of
SBCs with global manufacturing capability.  Its production
facilities are located in the United States, Germany, France,
The Netherlands, Brazil, and Japan.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Nov. 21, 2007, Moody's Investors Service has affirmed Kraton
Polymers LLC's B1 corporate family rating but revised the
company's outlook to negative as Moody's expects continued
margin weakness, due to delays in passing on the full extent of
raw material cost increases to Kraton customers, which will
diminish free cash flow from operations over the next 12 to 18
months.


NOVELL INC: Earns US$16.8 Million in Fiscal First Quarter 2008
--------------------------------------------------------------
Novell Inc's net profit increased to US$16.8 million in its
fiscal first quarter 2008 ended Jan. 31, 2008, compared to a
US$19.9 million net loss in the same period last year.

For the quarter, Novell reported net revenue of US$231 million.  
This compares to net revenue of US$218 million for the first
fiscal quarter 2007.  Income from operations for the first
fiscal quarter 2008 was US$8 million, compared to a loss from
operations of US$21 million for the first fiscal quarter 2007.  
Income from continuing operations in the first fiscal quarter
2008 was US$15 million, or US$0.04 per share.  This compares to
a loss from continuing operations of US$12 million, or US$0.04
loss per share, for the first fiscal quarter 2007.  Foreign
currency exchange rates favorably impacted revenue and
unfavorably impacted operating expenses by US$7 million and did
not materially impact income from operations year-over-year.

On a non-GAAP basis, income from operations for the first fiscal
quarter 2008 was US$24 million.  This compares to non-GAAP loss
from operations of US$1 million in the year-ago quarter.  Non-
GAAP income from continuing operations for the first fiscal
quarter 2008 was US$29 million, or US$0.08 per share.  This
compares to non-GAAP income from continuing operations of US$3
million, or US$0.01 per share, for the first fiscal quarter
2007.

For the first fiscal quarter 2008, Novell reported US$30 million
of revenue from Open Platform Solutions of which US$28 million
was from Linux Platform Products, up 65% year-over-year.  
Revenue from Identity and Security Management was US$32 million
of which Identity and Access Management was US$28 million, up
15% year-over-year.  Revenue from Systems and Resource
Management was US$37 million, up 5% year-over-year.  Workgroup
revenue of US$90 million was up 1% year-over-year.

“We are very pleased with our results this quarter.  We
delivered product revenue growth across all business units and
continued expense control this quarter,” said Ron Hovsepian,
President and CEO of Novell.  “These results are indicative that
our strategic initiatives are yielding tangible results and that
we are on the right path to achieve long-term, sustainable
profitability.”

Cash, cash equivalents, and short-term investments were US$1.8
billion at Jan. 31, 2008, consistent with the year-ago quarter.  
Days sales outstanding in accounts receivable was 51 days at the
end of the first fiscal quarter 2008, down from 57 days at the
end of the year-ago quarter.  Total deferred revenue was US$723
million at the end of the first fiscal quarter 2008, down from
US$728 million at the end of the year-ago quarter.  Cash flow
from operations was a negative US$26 million for the first
fiscal quarter 2008 which includes US$31 million in special
interest and restructuring payments.  This compares to cash flow
from operations of US$348 million in the first fiscal quarter
2007 which includes the US$348 million payment from Microsoft
and US$8 million in special interest payments.

As a result of our acquisition of PlateSpin and our first fiscal
quarter 2008 performance, Novell's management issued this
financial guidance for the full fiscal year 2008:

          -- net revenue is expected to be between
             US$940 million and US$970 million exceeding
             previously stated guidance of between
             US$920 million and US$945 million.

          -- Non-GAAP operating margin is expected to be between
             7% and 9%, excluding all acquisition-related
             intangible asset amortization.

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

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

                          *     *     *

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


PROPEX INC: Section 341 Meeting of Creditors Set for March 11
-------------------------------------------------------------
Richard F. Clippard, the U.S. Trustee for Region 8, will convene
a meeting of creditors of Propex, Inc., and its debtor-
affiliates on March 11, 2008, at 10:00 a.m., prevailing Eastern
Time, at the U.S. Bankruptcy Court, Basement Room 18, 31 East
11th Street, Chattanooga, Tennessee.

The meeting may be continued until April 8, 2008, and is
expected to conclude after the filing of the Debtors' Schedules
and Statements of Financial Affairs.

This is the first meeting of creditors required under Section
341(a) of the Bankruptcy Code in the Debtors' bankruptcy cases.

The Section 341 meeting in the Debtors' cases was originally set
for March 4.

Attendance by the Debtors' creditors at the meeting is welcome,
but not required.  The Sec. 341(a) meeting offers the creditors
a one-time opportunity to examine the Debtors' representative
under oath about the Debtors' financial affairs and operations
that would be of interest to the general body of creditors.

Headquartered in Chattanooga, Tennessee, Propex Inc. --
http://www.propexinc.com/-- produces geosynthetic, concrete,
furnishing, and industrial fabrics and fiber.  It is produces
primary and secondary carpet backing.  Propex operates in North
America, Europe, and Brazil.

The company and its debtor-affiliates filed for Chapter 11
protection on Jan. 18, 2008 (Bankr. E.D. Tenn. Case No. 08-
10249).  The debtors' has selected Edward L. Ripley, Esq., Henry
J. Kaim, Esq., and Mark W. Wege, Esq. at King & Spalding, in
Houston, Texas, to represent them.  As of Sept. 30, 2007, the
debtors' balance sheet showed total assets of US$585,700,000 and
total debts of US$527,400,000.  The Debtors' exclusive period to
file a plan of reorganization expires on May 17, 2008.

(Propex Bankruptcy News, Issue No. 7; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)  


PROPEX INC: Wants Court Nod on Dalton Property Sale Procedures
--------------------------------------------------------------
Propex Inc. and its debtor-affiliates ask the U.S. Bankruptcy
Court for the Eastern District of Tennessee to:

   (a) after an initial and interim hearing, approve the
       proposed auction and sale process for a proposed Dalton
       Property sale;

   (b) authorize them to modify and assume an Auction Listing
       Contract with Potts Brothers;

   (c) after a final hearing, authorize the sale of the Dalton
       Property to the highest bidder;

   (d) allow them to pay a real estate commission to Potts
       Brothers in the event the Dalton Property is successfully
       consummated; and

   (e) rule that a sale arising from the proposed sale process
       be deemed to be exempt from any sales or transfer taxes.

The Debtors own a certain real property located at 821-835
Shugart Road, in Dalton, Whitfield County, Georgia.  The Dalton
Property is comprised of approximately 12.5 acres of real
property, where three industrial buildings that were formerly
used by the Debtors as a warehousing and distribution center are
located.

In early 2007, the Debtors determined that the Dalton Property
is not necessary or beneficial to their business and operations.  
Thereafter, they ceased operations at the Dalton Property, and
since then, the property has been largely unused and vacant.  
The Debtors though currently store a small amount of inventory
at the Dalton Premises.

Mark W. Wege, Esq., at King & Spalding, LLP, in Houston, Texas,
asserts that a sale of the Dalton Property would permit the
Debtors to monetize the asset for distribution to creditors and
would facilitate a successful reorganization.  The Debtors
believe that a sale of the Dalton Property would yield
significant benefits for their creditors and estates.

                     Potts Brothers Contract

In connection with their efforts to sell the Dalton Property to
the highest bidder, the Debtors entered into an auction listing
contract with Potts Brothers Land and Auction, LLC, on Sept. 28,
2007.  Potts Brothers agreed to "provide necessary auction
personnel, labor, sales information, plats, property packages,
photos and signs" related to the auction of the Dalton Property.  
In compensation for its efforts, the parties agreed that Potts
Brothers would receive an 8% "buyer's premium" from the proceeds
of the auction sale.  In the event of a "No Sale," the Debtors
would reimburse Potts Brothers for advertising costs and any
costs related to surveying the Dalton Property.

Potts Brothers then advertised and marketed the Dalton Property
for a Jan. 31, 2008 auction pursuant to an advertising and
marketing plan it agreed upon with the Debtors.  As a result of
those marketing efforts, 11 potential buyers expressed interest
in the Dalton Property, with eight of those potential buyers
conducting some preliminary due diligence with respect to the
Property.

However, prior to the scheduled Auction, the Debtors filed for
bankruptcy protection and instructed Potts Brothers to cancel
the Jan. 31 Auction and to temporarily cease its advertising and
marketing efforts pending further instructions from the Court.

Mr. Wege states that the Auction Listing Contract currently sets
March 1, 2008, as the "outside date" for closing the sale of the
Dalton Property to the successful bidder at auction.

Because the Debtors' proposed sale process contemplates a
Closing Date after March 1, 2008, the Debtors and Potts Brothers
desire for the outside date to be amended to June 30, 2008.  
This amendment should ensure that the sale of the Dalton
Property will be closed before the outside date under the
Auction Listing Contract.

                      Proposed Sale Process

To fully maximize the value to be realized from the proposed
sale, the Debtors developed a process for auctioning the Dalton
Property.

The Debtors seek to sell and transfer the Dalton Property to a
prevailing bidder, on an "as is" and "where is" basis.

Potts Brothers will implement a marketing process for the sale
of the Dalton Property until the Auction date.

Potts Brothers will conduct an auction with respect to the sale
of the Dalton Property on May 16, 2008, at 10:00 a.m.  The
Dalton Property has been divided into three tracts pursuant to a
survey conducted by Allied Surveying Inc. in October 2007 at the
behest of Potts Brothers and the Debtors.

   * At the Auction, the Potts Brothers will first offer for
     bidding each of the three separate tracts on an individual
     basis.  

   * After Potts Brothers determines the highest or best bid for
     each of the three individual tracts, it will offer for
     bidding the three tracts together.

   * After the bidding is complete for the three tracts
     together, Potts Brothers will determine, subject to
     Bankruptcy Court approval, the bid or combination of bids
     for the Dalton Property that represent the highest or best
     offer for the Dalton Property and the determination will be
     announced by Potts Brothers at the Auction, together with
     the final bid amount inclusive of the 8% "buyer's premium"
     covering Potts Brothers' commission.

   * On the day of the Auction, each party submitting a
     Prevailing Bid will pay by cashiers' or certified check a
     deposit equal to 10% of the amount of its Prevailing Bid.

   * All bidding for the Dalton Property will be concluded at
     the Auction and there will be no further bidding at the
     Sale Hearing.

The Debtors propose that the Auction will be conducted as a
"reserve auction."  In the event that no bid or combination of
bids are received at the Auction that are satisfactory to the
Debtors in their sole and absolute discretion, Potts Brothers
will announce that there is no successful bidder for the Dalton
Property and no Prevailing Bid will be presented to the Court.

If the Debtors select a Prevailing Bid or Bids at the Auction,
within one day of completion of the Auction, the Debtors will
(a) file a notice with the Court setting forth the identity of
each Prevailing Bidder and the amount of each Prevailing Bid,
and (b) serve the Bid Notice on the parties on the master
service list in the case.

Prior to a sale hearing, the Debtors will provide the Official
Committee of Unsecured Creditors with information made available
to it at the Auction regarding the Prevailing Bidders, and will
confer and consult with the Creditors Committee regarding the
Prevailing Bids after the Debtors' acceptances.

The Debtors further ask the Court to set a hearing on
May 21, 2008, at 9:00 a.m. local time in Chattanooga, Tennessee,
to consider approval of the Dalton Property sale.  The Debtors
intend to present the Prevailing Bid or Bids for approval at the
Sale Hearing.

The Debtors will be deemed to have accepted a bid only when that
bid has been approved by the Court at the Sale Hearing.  Upon
the failure to consummate a sale of the Dalton Property after
the Sale Hearing because of the occurrence of a breach or
default under the terms of the Prevailing Bid:

   (1) the next highest or otherwise best bid, as disclosed at
       the Sale Hearing, will be deemed the Prevailing Bid
       without further Court order, and the parties will be
       authorized and directed to consummate the transaction
       contemplated by the backup Prevailing Bid; and

   (2) the Debtors will be entitled to retain the defaulting
       bidder's deposit as liquidated damages.

At all times during the Proposed Sale Process, the Debtors seek
to retain full discretion and right to determine, in their sole
discretion, which bid or bids constitute the highest or
otherwise best offer for the purchase of the Dalton Property,
and which bid or bids should be selected as Prevailing Bid or
Bids, if any, all subject to final approval by the Court.

The Debtors reserve their rights to, at any time before the
entry of a Court order approving a Prevailing Bid, reject any
bid that they determine is (i) inadequate or insufficient, (ii)
contrary to the requirements of the Bankruptcy Code or the
Proposed Sale Process, or (iii) contrary to the best interests
of their estates and creditors.  

The Debtors propose that all closings related to the sale of the
Dalton Property will take place no later than 30 days after the
Court approves the sale.

                     About Propex Inc.

Headquartered in Chattanooga, Tennessee, Propex Inc. --
http://www.propexinc.com/-- produces geosynthetic, concrete,
furnishing, and industrial fabrics and fiber.  It is produces
primary and secondary carpet backing.  Propex operates in North
America, Europe, and Brazil.

The company and its debtor-affiliates filed for Chapter 11
protection on Jan. 18, 2008 (Bankr. E.D. Tenn. Case No. 08-
10249).  The debtors' has selected Edward L. Ripley, Esq., Henry
J. Kaim, Esq., and Mark W. Wege, Esq. at King & Spalding, in
Houston, Texas, to represent them.  As of Sept. 30, 2007, the
debtors' balance sheet showed total assets of US$585,700,000 and
total debts of US$527,400,000.  The Debtors' exclusive period to
file a plan of reorganization expires on May 17, 2008.  (Propex
Bankruptcy News, Issue No. 5; Bankruptcy Creditors' Service
Inc., http://bankrupt.com/newsstand/or 215/945-7000)



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

ACM BERNSTEIN: Will Hold Final Shareholders Meeting on March 10
---------------------------------------------------------------
ACM Bernstein Absolute Return Credit Strategy Fund will hold its
final shareholders' meeting on March 10, 2008, at 9:20 a.m. at
Close Brothers (Cayman) Limited, 4th Floor Harbor Place, George
Town, Grand Cayman.

These matters will be taken up during the meeting:

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

ACM Bernstein's shareholders decided on Jan. 7, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

             John Sutlic
             Attn: Kim Charaman
             Close Brothers (Cayman) Limited
             Fourth Floor, Harbor Place
             P.O. Box 1034, Grand Cayman KYI-1102
             Cayman Islands
             Telephone: (345) 949 8455
             Fax: (345) 949 8499


ACM HIGH: Final Shareholders Meeting Is on March 10
---------------------------------------------------
ACM High Grade Strategy Fund will hold its final shareholders'
meeting on March 10, 2008, at 9:30 a.m. at Close Brothers
(Cayman) Limited, 4th Floor Harbor Place, George Town, Grand
Cayman.

These matters will be taken up during the meeting:

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

ACM High's shareholders decided on Jan. 7, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidator can be reached at:

             John Sutlic
             Attn: Kim Charaman
             Close Brothers (Cayman) Limited
             Fourth Floor, Harbor Place
             P.O. Box 1034, Grand Cayman KYI-1102
             Cayman Islands
             Telephone: (345) 949 8455
             Fax: (345) 949 8499


ACM STRATEGIC: Will Hold Final Shareholders Meeting on March 10
---------------------------------------------------------------
ACM Strategic High Grade Fund will hold its final shareholders'
meeting on March 10, 2008, at 9:40 a.m. at Close Brothers
(Cayman) Limited, 4th Floor Harbor Place, George Town, Grand
Cayman.

These matters will be taken up during the meeting:

           1) accounting of the winding-up process; and

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

ACM Strategic's shareholders decided on Jan. 7, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

             John Sutlic
             Attn: Kim Charaman
             Close Brothers (Cayman) Limited
             Fourth Floor, Harbor Place
             P.O. Box 1034, Grand Cayman KYI-1102
             Cayman Islands
             Telephone: (345) 949 8455
             Fax: (345) 949 8499


BERNSTEIN OFFSHORE: Sets Final Shareholders Meeting for March 10
----------------------------------------------------------------
Bernstein Offshore Fund SPC will hold its final shareholders'
meeting on March 10, 2008, at 9:10 a.m. at Close Brothers
(Cayman) Limited, 4th
Floor Harbor Place, George Town, Grand Cayman.

These matters will be taken up during the meeting:

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

Bernstein Offshore's shareholders decided on Jan. 7, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

             John Sutlic
             Attn: Kim Charaman
             Close Brothers (Cayman) Limited
             Fourth Floor, Harbor Place
             P.O. Box 1034, Grand Cayman KYI-1102
             Cayman Islands
             Telephone: (345) 949 8455
             Fax: (345) 949 8499


MARKET NEUTRAL: Final Shareholders Meeting is on March 10
---------------------------------------------------------
Market Neutral Equity Strategy Sub-Fund will hold its final
shareholders' meeting on March 10, 2008, at 9:50 a.m. at Close
Brothers (Cayman) Limited, 4th Floor Harbor Place, George Town,
Grand Cayman.

These matters will be taken up during the meeting:

           1) accounting of the winding-up process; and

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

Market Neutral's shareholders decided on Jan. 7, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

             John Sutlic
             Attn: Kim Charaman
             Close Brothers (Cayman) Limited
             Fourth Floor, Harbor Place
             P.O. Box 1034, Grand Cayman KYI-1102
             Cayman Islands
             Telephone: (345) 949 8455
             Fax: (345) 949 8499



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

INTERPUBLIC GROUP: S&P Upgrades Corporate Credit Rating to B+
-------------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit
rating on Interpublic Group of Cos. Inc. to 'B+' from 'B'.  The
outlook is positive.  The New York City-based global advertising
agency holding company had approximately US$2.3 billion in debt
outstanding as of Dec. 31, 2007.

"The upgrade reflects Interpublic's success in achieving several
quarters of organic revenue and EBITDA growth, and the
remediation of its remaining internal control deficiencies to
bring the company into compliance with the criteria established
by the Committee of Sponsoring Organizations of the Treadway
Commission," explained S&P's credit analyst Debbie Kinzer.

The rating on Interpublic reflects its high leverage, relatively
weak discretionary cash flow, and profitability measures that
are below those of peers.  The company's large portfolio of
advertising and communications services brands, its broad
geographic and business diversity, its return to organic revenue
growth after a period of net client losses, and very strong cash
balances partially offset these factors.  In 2007, the company
completed remediation of the seven internal control weaknesses
that remained from 2006.  However, the outcome of an Securities
and Exchange Commission investigation into company's financial
restatements in recent years is still pending, and Interpublic's
monetary liability regarding this matter has not yet been
determined.

New York-based, Interpublic Group of Companies Inc. (NYSE: IPG)
-- http://www.interpublic.com/-- is one of the world's leading  
organizations of advertising agencies and marketing services
companies.  Major global brands include Draftfcb, FutureBrand,
GolinHarris International, Initiative, Jack Morton Worldwide,
Lowe Worldwide, MAGNA Global, McCann Erickson, Momentum, MRM
Worldwide, Octagon, Universal McCann and Weber Shandwick.  
Leading domestic brands include Campbell-Ewald, Carmichael
Lynch, Deutsch, Hill Holliday, Mullen, The Martin Agency and
R/GA.

The company has operations in Argentina, Brazil, Chile,
Colombia, Costa Rica, Dominican Republic, and Ecuador.


ROCK-TENN CO: Hikes Recycled Paperboard Price to US$50 Per Ton
--------------------------------------------------------------
Rock-Tenn Company reported a US$50.00 per ton price increase on
all grades of coated recycled paperboard.  The price increase is
effective with shipments on March 24, 2008.

Headquartered in Norcross, Georgia, Rock-Tenn Company (NYSE:
RKT) -- http://www.rocktenn.com/-- provides a wide range of
marketing and packaging solutions to consumer products
companies, with operating locations in the United States,
Canada, Mexico, Argentina and Chile.  The company is one of
North America's manufacturers of packaging products,
merchandising displays and bleached and recycled paperboard.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Jan. 31, 2008, Moody's Investors Service confirmed Rock-Tenn
Company's Ba2 corporate family rating and the Ba3 rating on the
company's existing senior notes.  At the same time Moody's
assigned a Ba2 rating to the company's new US$1 billion senior
secured credit facilities and a Ba3 rating to the company's new
US$400 million senior unsecured notes.  Moody's said the rating
outlook is negative.


SCIENTIFIC GAMES: To Provide Sisal With 25,000 WAVE Terminals
-------------------------------------------------------------
Scientific Games has signed a contract to provide 25,000 "next
generation" Leonardo/WAVE(TM) terminals to Sisal S.p.A., a
leading gaming company in Italy.  The Leonardo/WAVE(TM) terminal
was jointly developed with Sisal, and is a customized version of
the WAVE(TM) terminal currently deployed in Connecticut and
Maryland.  Terminal delivery and installation should begin in
April 2008 and span over the next 36 months.  The contract is
expected to generate approximately US$90 million in revenue to
Scientific Games over the course of three years.

The Leonardo/WAVE(TM) terminal is a new sleek and small lottery
terminal that is designed to deliver improved business
efficiencies for retailers, increase lottery sales, and enable
lottery expansion into new retail store formats.  The
Leonardo/WAVE(TM) has the fastest ticket document processing and
printing speeds in the industry making it easier and faster to
use as well as the most versatile lottery retail terminal in the
world.  Among the Leonardo/WAVE(TM)'s extensive list of features
is a 15" wide screen color LCD operator display utilizing the
latest in touch screen technology and a 12" color LCD customer
display with audio and full motion video capability combined to
provide a single customer information and advertising center.  
The Leonardo/WAVE(TM) terminal is realized to meet Sisal's
specialized design requirements and will be delivered with a
long list of other industry-first features to help Sisal
continue its success for many years to come.

"We have been working with Scientific Games since when we
together designed Extrema, the first terminal, and have always
received quality products, great service and superior results,"
said Sisal SpA Chief Executive Officer, Giorgio Sandi.  "We
trust in Scientific Games as a leader in the industry and,
renewing our strong collaboration, we have worked closely with
them to engineer the new state of the art Leonardo/WAVE(TM)
terminal, which will enhance our revenue growth capabilities and
satisfy our retailers and our customers."

"Sisal has been a customer of Scientific Games since 1998, and
we are thrilled that they will be our first European customer to
use the new WAVE(TM) terminal," said Scientific Games
Chairperson and CEO, Lorne Weil.  "We have always recognized
Sisal as a high quality, very creative and extremely efficient
operator and we believe these new Leonardo/WAVE(TM) terminals
will contribute to that reputation."

                     About Scientific Games

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

                         *     *     *

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



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

SOLUTIA INC: Can Assume Wal-Mart Contracts Under Terms of Plan
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
allowed Solutia Inc. and its debtor-affiliates to assume certain
executory contracts with Wal-Mart Stores Inc., pursuant to the
terms of the Debtors' confirmed Fifth Amended Joint Plan of
Reorganization.

As reported in the Troubled Company Reporter on Feb. 6, 2008,
Wal-Mart may be entitled to take credits or contractual
adjustments for defective products, rebates or other
contractually permitted items that are currently unknown or that
will accrue after the date of the Debtors' assumption of the
Wal-Mart Contracts.  This is done in the ordinary course of
operating under the Wal-Mart Contracts.

The parties have agreed that notwithstanding the proposed cure
amounts of the contracts, Wal-Mart and its subsidiaries and
affiliates are allowed to assert in the ordinary course any
chargebacks that are currently unknown or that will accrue after
the Assumption Date pursuant to the terms of the Wal-Mart
Contracts without regard to the date on which Wal-Mart or its
subsidiary or affiliate purchased the product giving rise to the
Chargeback.

Nothing in the Stipulation constitutes a waiver of the Debtors'
rights to dispute any Chargeback for reasons other than that the
claims were not made before the Assumption Date.

                        About Solutia Inc.

Based in St. Louis, Missouri, Solutia Inc. (OTCBB: SOLUQ) (NYSE:
SOA-WI) -- http://www.solutia.com/-- and its subsidiaries,  
engage in the manufacture and sale of chemical-based materials,
which are used in consumer and industrial applications
worldwide.  Solutia has operations in Malaysia, China,
Singapore, Belgium, and Colombia.

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

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

On Feb. 14, 2006, the Debtors filed their Reorganization Plan &
Disclosure Statement.  On May 15, 2007, they filed an Amended
Reorganization Plan and on July 9, 2007, filed a 2nd Amended
Reorganization Plan.  The Bankruptcy Court approved the Debtors'
amended Disclosure Statement on Oct. 19, 2007.  On
Oct. 22, 2007, the Debtor re-filed a Consensual Plan &
Disclosure Statement and on Nov. 29, 2007, the Court confirmed
the Debtors' Consensual Plan.  Solutia emerged from chapter 11
protection Feb. 28, 2008.  (Solutia Bankruptcy News, Issue No.
119; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).

                          *     *     *

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

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


SOLUTIA INC: Court Approves Bayer & Lanxess Claims Settlement
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
approved the stipulation signed by Solutia Inc. with
LANXESS Corporation, Bayer AG, Bayer MaterialScience LLC and
Bayer Corporation.

As reported in the Troubled Company Reporter on Feb. 15, 2008,
Bayer acquired Monsanto Company's styrenics business pursuant to
an Asset Purchase Agreement dated Dec. 31, 1995.  Monsanto later
assigned the APA to Solutia Inc. in September 1997, as part of
Solutia's spin off from Monsanto.

Solutia and Bayer were parties to a Resimene Lease and Operating
Agreement dated July 29, 1999.  Solutia terminated the Resimene
Agreement on June 28, 2000, with a termination fee of
US$2,922,300, payable to Bayer in 18 monthly installments.  As
of the bankruptcy filing, Solutia owed US$432,761 to Bayer for
the two remaining installment payments.

Bayer and Monsanto were also parties to an Indian Orchard Lease
and Services Agreement dated Oct. 31, 1995.  The agreement was
assigned to Solutia as part of the Spin Off.  Bayer terminated
the Indian Orchard Agreement, and Solutia agreed to a
termination fee of US$1,191,101, payable by Bayer in 18 monthly
installments.  As of the bankruptcy filing, Bayer owed
US$397,034 for the six remaining installment payments.

As of the bankruptcy filing, Bayer also owed Solutia US$295,771
for certain purchases of adipic acid.

Since the bankruptcy filing, LANXESS Corporation, Bayer AG,
Bayer MaterialScience LLC, and Bayer, have undergone corporate
reorganizations, and as a result, Lanxess currently holds
certain claims of Bayer and MaterialScience.

Solutia objected to several of Bayer/Lanxess Parties Claims for
damages arising under the APA.

Solutia also filed Schedule No. 10115234 for US$339,771, for
amounts owed by Solutia to Bayer Polymers LLC, now known as
MaterialScience.

                     Settlement Agreement

Following arm's-length negotiations regarding the resolution and
treatment of the Claims, the parties have agreed, among other
things, that Bayer and Lanxess will be entitled to recoup or
offset US$372,034 against the US$397,034 owed to Solutia for the
Indian Orchard Termination Fee.

Bayer/Lanxess parties will pay Solutia US$320,771, representing
the US$25,000 balance of the Indian Orchard Termination Fee
after giving ffect to the Set-Off, plus the US$295,771 owed for
adipic acid purchases.

Also Solutia's Objection will be deemed withdrawn with respect
to the Claims; and upon approval of the Stipulation, Solutia
will be required to reserve the amount of the Allowed Claim in
the Disputed Claims Reserve on account of the Claims.

                       About Solutia Inc.

Based in St. Louis, Missouri, Solutia Inc. (OTCBB: SOLUQ) (NYSE:
SOA-WI) -- http://www.solutia.com/-- and its subsidiaries,  
engage in the manufacture and sale of chemical-based materials,
which are used in consumer and industrial applications
worldwide.  Solutia has operations in Malaysia, China,
Singapore, Belgium, and Colombia.

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

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

On Feb. 14, 2006, the Debtors filed their Reorganization Plan &
Disclosure Statement.  On May 15, 2007, they filed an Amended
Reorganization Plan and on July 9, 2007, filed a 2nd Amended
Reorganization Plan.  The Bankruptcy Court approved the Debtors'
amended Disclosure Statement on Oct. 19, 2007.  On Oct. 22,
2007, the Debtor re-filed a Consensual Plan & Disclosure
Statement and on Nov. 29, 2007, the Court confirmed the Debtors'
Consensual Plan.  (Solutia Bankruptcy News, Issue No. 119;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)

                         *     *     *

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

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


SOLUTIA INC: Court Approves Quinn Emanuel as Conflicts Counsel
--------------------------------------------------------------
Solutia Inc. and its Debtor-affiliates obtained approval from
the U.S. Bankruptcy Court for the Southern District of New
York's to employ Quinn Emanuel Urquhart Oliver & Hedges LLP, as
their special litigation and conflicts counsel for matters
arising in or related to the Debtors' Chapter 11 cases, nunc pro
tunc to Jan. 22, 2008.

The Troubled Company Reporter said on Feb. 6, 2008, that
according to Rosemary L. Klein, general counsel of Solutia and
an authorized officer of each of the other Debtors, because of
Quinn Emanuel's experience in matters concerning complex
bankruptcy and commercial litigation, the firm is well-suited to
deal effectively with many of the potential legal issues that
may arise in the Debtors' Chapter 11 cases.

As special counsel, Quinn Emanuel will:

  (a) advise the Debtors regarding their ability to initiate
      actions to protect their rights under certain Oct. 25,
      2007 Commitment Letter -- with respect to Solutia's exit
      financing -- and related documents and enforce the
      Commitment Parties' legally binding commitments for the
      benefit of their estates;

  (b) advise the Debtors regarding their ability to initiate
      actions to protect their rights as against the Debtors'
      postpetition lenders; and

  (c) commence and conduct any and all litigation necessary or
      appropriate to assert rights held by the Debtors, protect
      assets of the Debtors' Chapter 11 estates or otherwise
      further the goal of completing the Debtors' successful
      reorganization.

The Debtors will pay Quinn Emanuel in accordance with its
standard hourly rates and reimburse the firm of actual and
necessary expenses.  The firm informs the Court that its rates
are subject to period adjustment to reflect economic and other
conditions.  The firm's current hourly rates are:

             Partners               US$660 - US$950
             Other Attorneys        US$380 - US$950
             Legal Assistants       US$250 - US$280

Quinn Emanuel has not, does not, and will not represent any
entities or any of their respective affiliates or subsidiaries,
in matters related to the Debtors, their Chapter 11 cases, or
other matters directly adverse to the Debtors during the
pendency of their cases, Susheel Kirpalani, Esq., a member of
Quinn Emanuel, assures the Court.

Mr. Kirpalani asserts that the firm is a disinterested person,
as the term is defined by Section 101(14) of the Bankruptcy
Code.

                       About Solutia Inc.

Based in St. Louis, Missouri, Solutia Inc. (OTCBB: SOLUQ) (NYSE:
SOA-WI) -- http://www.solutia.com/-- and its subsidiaries,  
engage in the manufacture and sale of chemical-based materials,
which are used in consumer and industrial applications
worldwide.  Solutia has operations in Malaysia, China,
Singapore, Belgium, and Colombia.

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

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

On Feb. 14, 2006, the Debtors filed their Reorganization Plan &
Disclosure Statement.  On May 15, 2007, they filed an Amended
Reorganization Plan and on July 9, 2007, filed a 2nd Amended
Reorganization Plan.  The Bankruptcy Court approved the Debtors'
amended Disclosure Statement on Oct. 19, 2007.  On
Oct. 22, 2007, the Debtor re-filed a Consensual Plan &
Disclosure Statement and on Nov. 29, 2007, the Court confirmed
the Debtors' Consensual Plan.  (Solutia Bankruptcy News, Issue
No. 119; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)

                         *     *     *

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

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



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

ALCATEL-LUCENT: State Firm Mulling Co.'s Settlement Proposal
------------------------------------------------------------
Costa Rican state-run electricity monopoly Instituto
Costarricense de Electricidad's legal director Giovanni Bonilla
told Business News Americas that the company is studying
Alcatel-Lucent SA's proposal to settle a judicial dispute with
the firm.

BNamericas relates that Instituto Costarricense demanded in
August 2007, that Alcatel-Lucent pay CRC31.2 billion for not
complying with a mobile telephony infrastructure contract
granted in 2002.  Instituto Costarricense's executive president
Pedro Pablo Quiros had said that Alcatel-Lucent, which at the
time of the contract in question was called Alcatel, must
compensate the company for service fail