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

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

              Monday, March 17, 2008, Vol. 9, No. 54

                             Headlines


A R G E N T I N A

ALITALIA SPA: State Council Rules Exclusive Talks Legitimate
CHRYSLER LLC: Sells Tritec Motors in Brazil to Fiat Powertrain
CHRYSLER LLC: Wants District Court to Study Bankr. Court Rulings
CHRYSLER LLC: Plans to Shut Down Company for Two Weeks in July
DELTA AIR: Wants Atlanta Port's Reserve Fund Trimmed to US$58MM

DELTA AIR: Execs Dispose of 49,304 Shares at US$13.35 Per Share
MACRO MODA: Proofs of Claim Verification Is Until May 7
MINERA SAFY: Proofs of Claim Verification Deadline Is March 31
OLD VETIKAR: Trustee to File Individual Reports on June 10
PATAGONIA EXPRESS: Proofs of Claim Verification Is Until May 21

SUN MICROSYSTEMS: To Resell BlueSpace TransMail Trusted Edition


B E R M U D A

MONTPELIER RE: Names Christopher Harris as Chief Exec. Officer
MONTPELIER RE: S&P Says Ratings Unaffected by Executive Hirings
SECURITY CAPITAL: Posts US$1.1 Billion Net Loss in 4th Qtr. 2007
TYCO INT'L: Taps Arun Nayar as Senior Vice President & Treasurer


B R A Z I L

AMBAC FINANCIAL: Closes US$1 Bln Public Offering of Common Stock
BRASIL TELECOM: Management Renumeration Voting Is Set Tomorrow
BRASKEM SA: Sets Shareholders' General Meeting for March 26
COMPANHIA SIDERURGICA: Fitch Sees 2008 as Record Year for Firm
CYRELA BRAZIL: Net Income Rises 74.2% to BRL422 Million in 2007

DRAKE MGMT: May Liquidate US$2.7-Bil. Global Opportunities Fund
FIAT SPA: FPT Unit Acquires Tritec Motors' Plant from Chrysler
FIAT SPA: John Elkann Takes Over as Editrice La Stampa Chairman
GENERAL MOTORS: Wants to Take Tools If Plastech Stops Delivery
GERDAU SA: Well-Positioned for Iron Ore Price Hike, Fitch Says

NORTEL NETWORKS: Realigns Biz; To Send Jobs Offshore by 2009
TRW AUTOMOTIVE: Earns US$56 Million in Quarter Ended December 31
USINAS SIDERURGICA: To Benefit From Price Increase, Fitch Says


C A Y M A N  I S L A N D S

AIDA C: Sets Final Shareholders' Meeting for March 20
BEAR STEARNS: Probe to Focus on April 2007 Conference Call
BRYN MAWR: Proofs of Claim Filing Is Until March 20
CEA 97A: Proofs of Claim Filing Deadline Is March 20
STARVEST EMERGING: Proofs of Claim Filing Is Until March 20

TGM CURRENCY: Proofs of Claim Filing Deadline Is March 20


C H I L E

QUEBECOR WORLD: Phillips Hager Owns 105,300 Non-Voting Shares
QUEBECOR WORLD: Has Strong Position to Survive, Teamsters Says


C O L O M B I A

GRAN TIERA: Net Loss Increases to US$8.5 Million in 2007
SOLUTIA INC: Inks Backstopper Registration Rights Agreement
SOLUTIA INC: Discloses New Board of Directors
SOLUTIA INC: Funding Co. to Distribute Assets Under Settlement


C O S T A  R I C A

SIRVA INC: Committee Files Motion to Restrict Access to Docs


E C U A D O R

DOLE FOOD: Posts US$57.5 Million Net Loss in Year Ended Dec. 29


G U A T E M A L A

BRITISH AIRWAYS: BALPA Reacts to Airline's Media Tactics
BRITISH AIRWAYS: Demands Urgent Changes to UK Airport Regulation


H O N D U R A S

MILLICOM INT'L: Earns US$697.1 Million in Year Ended Dec. 31


M E X I C O

BENCHMARK ELECTRONICS: Earns US$21 Mil. in 2007 Fourth Quarter
CEMEX SAB: Releases 2008 First Quarter Guidance
DESARROLADORA HOMEX: S&P Eyes Negative Rating on Share Buyback
FIRST DATA: Posts US$273.2 Million Net Loss in Fourth Quarter
FOAMEX INTERNATIONAL: To Pursue Further Deleveraging

SHARPER IMAGE: Obtains Final Approval to Use Cash Collateral
SMOBY-MAJORETTE: MI29 to Acquire Majorette Unit for EUR7 Million


P E R U

BUNGE LTD: Seven Summits Research Publishes PriceWatch Alert
QUEBECOR WORLD: Ex-Corby Workers Set Up Taskforce w/ Unite Union


P U E R T O  R I C O

ADELPHIA COMMS: Court Okays New Settlement With D&O Insurers
ADELPHIA COMMS: Supreme Court Dismisses John Rigas' Appeal
ADELPHIA COMMS: Settles Dispute on NBC Rejection Claims
AEROMED SERVICES: Hires Alexis Fuentes-Hernandez as Counsel


V E N E Z U E L A

NORTHWEST AIRLINES: Court Denies Panel Advisors' Completion Fees
NORTHWEST AIRLINES: Balks at U.S. Bank's Lease Rejection Claim
NORTHWEST AIRLINES: Signs Settlement Agreement With IAM
NORTHWEST AIRLINES: FMR LLC Discloses 10.4% Equity Stake


X X X X X X

* S&P: U.S. Recession Likely Offset Growth in LatAm Countries

* BOND PRICING: For the Week March 10 - March 14, 2008


                          - - - - -


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


ALITALIA SPA: State Council Rules Exclusive Talks Legitimate
------------------------------------------------------------
Italy's State Council, the highest administrative appeals court
in the country, has dismissed an appeal by AirOne S.p.A. to
reverse a ruling by the Italian Regional Administration Court of
Lazio that 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., Reuters reports.

The Council ruled that the selection process for Alitalia's
potential buyer was conducted "in an adequate way, guaranteeing
the proper competition between the potential buyers," Reuters
relates.

According to the report, the Lazio court rejected an appeal
filed by AirOne to its Feb. 20, 2008, decision 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 said 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.

Air France's Board of Directors has authorized the submission of
an offer for Italy's stake in Alitalia, subject to suspensive
conditions, including notably the commitment of the trade
unions.

                        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.


CHRYSLER LLC: Sells Tritec Motors in Brazil to Fiat Powertrain
--------------------------------------------------------------
Chrysler LLC signed an agreement to transfer full ownership of
Tritec Motors Ltda. to Fiat Powertrain Technologies.  The
purchase includes the facilities, manufacturing unit, production
lines and the license to produce the current range of products.

The Tritec Motors plant is located in the town of Campo Largo in
the Curitiba metropolitan area, in the southern Brazilian state
of Parana.

"The announcement is great news and provides a stable future for
Tritec under the ownership of Fiat Powertrain Technologies,"
said Chrysler Vice Chairman and President Tom LaSorda.

Total investment of FPT in this initiative will amount to
BRL250 million (EUR83 million) including further development
costs.  In addition to acquiring one of the world's most modern
engine factories, FPT also disclosed that the Campo Largo
manufacturing unit will produce a new range of mid-size gasoline
and flex-fuel engines.  This product will be developed jointly
by the Engineering Centers in Betim and Torino, working together
with staff at the Campo Largo plant.  The acquisition of this
plant by FPT – FIAT Powertrain Technologies will create
approximately 500 direct jobs and 1,500 indirect jobs, thus
contributing significantly to economic growth in the city of
Campo Largo, the local industrial district and the entire state
of Parana.

According to Alfredo Altavilla, FPT CEO, "acquiring the Campo
Largo manufacturing facility will enable us to reach two main
strategic goals: first, to attract an even larger number of non-
captive customers for this product. Secondly, to widen our
product portfolio, offering a new extremely modern and
competitive product range."

                           Tritec Motors

Tritec Motors was established in 1996 between Chrysler and the
BMW Group to manufacture 1.4- and 1.6-liter four-cylinder
gasoline engines.  The Tritec name stands for the union of the
three countries involved: Germany, the United States, and
Brazil.

The plant was built on a 314-acre (1.27 million square meter)
plot of land.  Construction of the 430,556 square foot (40,000
square meter) facility began in April 1998 and was completed by
January 1999.  The first motor was assembled in September of
that same year.

Built according to strict quality and technology standards, the
gasoline powered, four-cylinder, 16-valve 1.6- and 1.4-liter
engines were destined for export, formerly equipping all BMW
MINI models worldwide; the Chrysler PT Cruiser in South Africa,
Europe and other foreign markets; and formerly, the Chrysler
(Dodge) Neon sold outside North America.

                        About FIAT Powertain

Fiat Powertrain Technologies S.p.A. was set up in March 2005 to
pool all of the Fiat Group's expertise in engines and
transmissions, and combine all of the powertrain resources of
Fiat Group Automobiles, Iveco Motors, and Fiat Research Center
and Elasis.

Through its Powertrain Research & Technology unit, FTP conducts
advanced engineering and research work to ensure that it
maintains its technological excellence.  In South America, FPT
has 3,500 employees, three plants (Betim and Sete Lagoas in the
Brazilian state of Minas Gerais, and Cordoba in Argentina) and a
research center in Betim, focused on developing alternative fuel
engines.

                          About Chrysler LLC

Headquartered in Auburn Hills, Michigan, Chrysler LLC --
http://www.chrysler.com/-- a unit of Cerberus Capital
Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R)
brand vehicles and products.  The company has dealers worldwide,
including Canada, Mexico, U.S., Germany, France, U.K.,
Argentina, Brazil, Venezuela, China, Japan and Australia.

                           *     *     *

As reported in the Troubled Company Reporter on Nov. 12, 2007,
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating on Chrysler LLC and DaimlerChrysler Financial
Services Americas LLC and removed it from CreditWatch with
positive implications, where it was placed Sept. 26, 2007.  S&P
said the outlook is negative.


CHRYSLER LLC: Wants District Court to Study Bankr. Court Rulings
----------------------------------------------------------------
Chrysler LLC asks the U.S. District Court for the Eastern
District of Michigan to review the tool dispute rulings given by
the Honorable Phillip J. Shefferly of the U.S. Bankruptcy Court
for the Eastern District of Michigan.

As reported in the Troubled Company Reporter on March 4, 2008,
Chrysler LLC, Chrysler Motors Company LLC, and Chrysler Canada
Inc., took an appeal under 28 U.S.C. Section 158(a) before the
District Court from the orders of Judge Shefferly that denied:

    i) the lifting of the automatic stay to allow Chrysler to
       regain possession of tooling located in Plastech
       Engineered Products Inc. and its debtor-affiliates'
       plants; and

   ii) issuance of a preliminary injunction in connection with
       the proposed recovery of tooling equipment.

Judge Shefferly said in a court opinion that the Debtors needed
to keep the tooling equipment to faciliate them in their
reorganization.  The balancing of interests favored Plastech,
the Court said.

The Court affirmed the Debtors' contentions that the automatic
stay applies to both the tooling paid by Chrysler and the
tooling that Chrysler has not paid for.  In addition, the Court
was convinced that if Chrysler takes immediate possession of the
tooling, the Debtor will not be able to continue to provide
parts uninterrupted to its other major customers and therefore
any prospect of an effective reorganization will be lost.

The Chrysler Group therefore asks the District Court to
determine whether the Bankruptcy Court:

    -- erred in concluding that the Debtors' mere possession of
       certain tooling was sufficient to invoke the automatic
       stay under Section 362(a) of the Bankruptcy Code, where
       the Court agreed with Chrysler that it has a right to
       immediate possession of the tooling and where established
       caselaw provides that possession of property is sufficient
       to invoke the automatic stay only if there is some right
       of possession, i.e., "a good-faith, colorable claim to
       possession;"

    -- abused its discretion in denying Chrysler's motion to lift
       the automatic stay, where Chrysler established grounds to
       lift the stay under both Section 362(d)(1) ("cause" to
       lift the stay) and Section 362(d)(2) (debtor does not have
       equity in the property and the property is not "necessary
       to an effective reorganization");

    -- clearly erred in finding that Chrysler did not demonstrate
       "cause" under Section 362(d)(1) of the Bankruptcy Code to
       lift the automatic stay and allow Chrysler to immediately
       recover its tooling, where the Bankruptcy Court relied
       solely on the "early stages" of the case as a basis to
       disregard what the court acknowledged as Chrysler's clear
       and unambiguous contractual rights;

    -- erred in finding that there was no "cause" to lift the
       automatic stay, and that Chrysler's tooling was
       "necessary" to the Debtors' "effective reorganization,"
       where the continued possession of such tooling (as opposed
       to the receipt of revenue from Chrysler resulting from the
       production of component parts) would have no financial
       impact on the Debtor and would not avoid the financial
       harm on which the Bankruptcy Court relied in reaching its
       decision;

    -- clearly erred in permitting the Debtors to hold Chrysler'
       tooling hostage and, as a result, compelling Chrysler to
       continue purchasing component parts from the Debtors
       against its will;

    -- abused its discretion in denying Chrysler's request
       for injunctive relief, where the court agreed with
       Chrysler that it had a likelihood of success on the merits
       with respect to its right to demand possession of the
       tooling, and where Chrysler further demonstrated that:

       (a) without an injunction it will suffer irreparable harm
           in the form of immediate plant closures and loss of
           goodwill if it does not accede to the Debtors'
           financial demands;

       (b) such harm outweighs any potential harm to the Debtors
           if an injunction were to issue, and;

       (c) an injunction would serve the public interest by
           preventing the Debtors from using their Chapter 11
           bankruptcy filing as a means of holding Chrysler's
           tooling hostage to extract financial accommodations
           from Chrysler;

     -- erred in relying on Chrysler's alternative request for
        specific performance under its contracts with the Debtors
        as a basis for denying Chrysler's request for injunctive
        relief, where Chrysler's entitlement to specific
        performance was irrelevant to Chrysler's request for
        immediate possession of its tooling;

     -- clearly erred in finding that Chrysler could not show
        irreparable injury in the absence of an injunction since
        any resulting damages to Chrysler "are compensable by
        money," where the court failed to consider the fact that
        the Debtors' insolvency renders it unlikely that Chrysler
        could ever recover damages, and where the Court also
        disregarded the evidence presented by Chrysler as to the
        catastrophic harm it will suffer from an interruption in
        the supply of parts to its plants, including irreparable
        harm to Chrysler's goodwill with its other suppliers and
        customers, that is difficult, if not impossible, to
        calculate;

    -- clearly erred in relying on purported harm to the Debtors'
       other Major Customers to justify its denial of Chrysler's
       request for relief from the automatic stay and for
       immediate possession of its tooling, where the testimony
       and evidence revealed that:

       (a) the tooling is used only to produce parts for
            Chrysler;

       (b) any harm to the Debtors would consist solely of a loss
            of revenue from the inability to continue to produce
            parts for Chrysler, and;

       (c) that the Debtors' other Major Customers, including
           General Motors Corporation, Ford Motor Company, and
           Johnson Controls, Inc., all supported Chrysler's right
           to immediate possession of its tooling;

    -- erred as a matter of law in relying on the so-called
       "policy considerations of Chapter 11" to trump Chrysler's
       contract rights under state law and to allow the Debtors
       to effectively hold Chrysler's tooling hostage to extract
       financial concessions, even though the court acknowledged
       that:

       (a) Chrysler's contracts with the Debtors "are clear and
           unambiguous in conferring upon Chrysler the right to
           take immediate possession of the tooling," and;

       (b) that Chrysler will suffer harm "either by having to
           contribute additional financial accommodations to the
           Debtors, or by having to shut down certain of its
           assembly lines and idle certain of its workers if it
           does not obtain the tooling."

The documents were submitted to the District Court by Michael C.
Hammer, Esq., at Dickinson Wright PLLC, in Ann Arbor, Michigan,
on behalf of Chrysler Motors Company, LLC, and Chrysler Canada.

                     About Plastech Engineered

Based in Dearborn, Michigan, Plastech Engineered Products, Inc.
-- http://www.plastecheng.com/-- is full-service automotive
supplier of interior, exterior and underhood components.  It
designs and manufactures blow-molded and injection-molded
plastic products primarily for the automotive industry.
Plastech's products include automotive interior trim, underhood
components, bumper and other exterior components, and cockpit
modules.  Plastech's major customers are General Motors, Ford
Motor Company, and Toyota, as well as Johnson Controls, Inc.

Plastech is a privately held company and is the largest family-
owned company in the state of Michigan.  The company is
certified as a Minority Business Enterprise by the state of
Michigan.  Plastech maintains more than 35 manufacturing
facilities in the midwestern and southern United States.  The
company's products are sold through an in-house sales force.

The company and eight of its affiliates filed for Chapter 11
protection on Feb. 1, 2008 (Bankr. E.D. Mich. Lead Case No. 08-
42417).  Gregg M. Galardi, Esq., at Skadden Arps Slate Meagher &
Flom LLP, and Deborah L. Fish, Esq., at Allard & Fish, P.C.,
represent the Debtors in their restructuring efforts.  The
Debtors chose Jones Day as their special corporate and
litigation counsel.  Lazard Freres & Co. LLC serves as the
Debtors' investment bankers, while Conway, MacKenzie & Dunleavy
provide financial advisory services.  The Debtors also employed
Donlin, Recano & Company as their claims and noticing agent.

An Official Committee of Unsecured Creditors has been appointed
in the Debtors' cases.

As of Dec. 31, 2006, the company's books and records
reflected assets totaling US$729,000,000 and total liabilities
of US$695,000,000.  (Plastech Bankruptcy News, Issue No. 11;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)

                        About Chrysler LLC

Based in Auburn Hills, Michigan, Chrysler LLC --
http://www.chrysler.com/-- a unit of Cerberus Capital
Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R)
brand vehicles and products.  The company has dealers worldwide,
including Canada, Mexico, U.S., Germany, France, U.K.,
Argentina, Brazil, Venezuela, China, Japan and Australia.

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
Nov. 12, 2007, Standard & Poor's Ratings Services affirmed its
'B' corporate credit rating on Chrysler LLC and DaimlerChrysler
Financial Services Americas LLC and removed it from CreditWatch
with positive implications, where it was placed Sept. 26, 2007.
S&P said the outlook is negative.


CHRYSLER LLC: Plans to Shut Down Company for Two Weeks in July
--------------------------------------------------------------
Chrysler LLC disclosed its intention to shut down its entire
operations for two weeks starting July 7, 2008, various sources
report citing an e-mail message sent to Chrysler employees.

Although, it isn't unusual for plants to idle production during
the summer, the corporate-wide shutdown will affect Chrysler's
19,000 salaried workers, who will also be asked to go on a
holiday together with the 52,500 hourly workers, Mike Ramsey of
Bloomberg News says.

Mr. Ramsey relates that the summer closing was once set for car
manufacturers to transfer new tools for model-year switchovers,
now July is scheduled for plant maintenance.

Those working on special projects will have to remain, Dee-Ann
Durbin of The Associated Press quotes Chrysler spokeswoman Mary
Beth Heilprin.

As reported in the Troubled Company Reporter on March 11, 2008,
Chrysler disclosed that it was closing its Pacifica Advance
Product Design Center outside Diego, and consolidate the
advanced design studio to its home base in Auburn Hills,
Michigan.

Increasingly, the company is leveraging resources worldwide,
forming new joint ventures and alliances and consolidating
operations in order to better achieve global balance and manage
fixed costs.  These moves, Chrysler said, are designed to help
it become a more globally focused manufacturer, with design,
engineering, and sourcing, as well as a local presence to serve
local customers.

Headquartered in Auburn Hills, Michigan, Chrysler LLC --
http://www.chrysler.com/-- a unit of Cerberus Capital
Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R)
brand vehicles and products.  The company has dealers worldwide,
including Canada, Mexico, U.S., Germany, France, U.K.,
Argentina, Brazil, Venezuela, China, Japan and Australia.

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
Nov. 12, 2007, Standard & Poor's Ratings Services affirmed its
'B' corporate credit rating on Chrysler LLC and DaimlerChrysler
Financial Services Americas LLC and removed it from CreditWatch
with positive implications, where it was placed Sept. 26, 2007.
S&P said the outlook is negative.


DELTA AIR: Wants Atlanta Port's Reserve Fund Trimmed to US$58MM
---------------------------------------------------------------
Hartsfield-Jackson International Airport and Delta Air Lines,
Inc., are in a tug-of-war over a US$168,000,000 reserve fund
that airport officials say is needed to provide a financial
cushion for a new international terminal, the Atlanta-Journal
Constitution reports.

The newspaper relates that Delta wants the contingency fund
trimmed back to US$58,000,000 while Hartsfield-Jackson officials
say the terminal's funding could ultimately cost
US$1,600,000,000.

According to the report, Delta and the airport agree on the need
for the terminal, considering an imminent annual increase of up
to 13,000,000 in Delta's international passengers in the next
seven years.  However, Delta and the other airlines complain
that the airport "is building in too much of a financial hedge
for the scope of the project."

"The higher the contingency, the less the incentive to stay
within the budget," the newspaper quotes Delta lobbyist Harold
Bevis.

Delta is Hartsfield-Jackson's biggest tenant.

          Contingency Is Justified, Airport Officials Say

Hartsfield-Jackson officials say the contingency is justified,
considering the early stage of the project, the vast sums of
construction money involved and the multi-year nature of the
project, the report relates.

The contingency is about 11 percent of the project's
construction cost, Mike Williams, the project's assistant
director, told the Atlanta-Journal.

According to the report, Delta and the other airlines have asked
for major upgrades for the terminal -- additional boarding
bridges to accommodate wide-bodied jets, more high-speed luggage
conveyors and check-in stations at the parking decks -- which
have boosted the contingency requirements.

Airport officials also note a recent escalation in the cost of
the underground tunnel which will cost approximately
US$80,000,000, the report added.

The newspaper said Delta declined to comment further on the
issue.

                          About Delta Air

Based in Atlanta, Georgia, Delta Air Lines Inc. (NYSE:DAL) --
http://www.delta.com/-- is the world's second-largest airline
in terms of passengers carried and the leading U.S. carrier
across the Atlantic, offering daily flights to 328 destinations
in 56 countries on Delta, Song, Delta Shuttle, the Delta
Connection carriers and its worldwide partners.  Delta flies to
Argentina, Australia and the United Kingdom, among others.

The company and 18 affiliates filed for chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923).
Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents
the Debtors in their restructuring efforts.  Timothy R. Coleman
at The Blackstone Group L.P. provides the Debtors with financial
advice.  Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at
Akin Gump Strauss Hauer & Feld LLP, provide the Official
Committee of Unsecured Creditors with legal advice.  John
McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James
S. Feltman at Mesirow Financial Consulting, LLC, serve as the
Committee's financial advisors.

The Debtors filed a chapter 11 plan of reorganization and
disclosure statement explaining that plan on Dec. 19, 2007.  On
Jan. 19, 2007, they filed revisions to the plan and disclosure
statement, and submitted further revisions to the plan on
Feb. 2, 2007.  On Feb. 7, 2007, the Court approved the Debtors'
disclosure statement.  In April 25, 2007, the Court confirmed
the Debtors' plan.  That plan became effective on April 30,
2007.  The Court entered a final decree closing 17 cases on
Sept. 26, 2007.  (Delta Air Lines Bankruptcy News, Issue No. 92;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
Jan. 18, 2008, Standard and Poor's said that media reports that
Delta Air Lines Inc. (B/Positive/--) entered into merger talks
with UAL Corp. (B/Stable/--) and Northwest Airlines Corp.
(B+/Stable/--) will have no effect on the ratings or outlook on
Delta, but that confirmed merger negotiations would result in
S&P's placing ratings of Delta and other airlines involved on
CreditWatch, most likely with developing or negative
implications.


DELTA AIR: Execs Dispose of 49,304 Shares at US$13.35 Per Share
---------------------------------------------------------------
Richard Anderson, chief executive officer, and Edward Bastian,
president and chief financial officer of Delta Air Lines Inc.
disposed company shares at US$13.35 per share.

1. Richard Anderson

In regulatory filing with the Securities and Exchange Commission
dated March 4, 2008, Richard Anderson disclosed that he disposed
of a total of 40,899 shares of Delta common stock on March 1 at
US$13.35 per share.

Mr. Anderson's disposed shares are withheld to pay tax
withholding obligations from the lapse of the restrictions on a
portion of the restricted stock granted to him on September 1,
2007, as approved by the Personnel & Compensation Committee of
Delta's Board of Directors, and exempted from Section 16(b) of
the Securities and Exchange Act of 1934 under Rules 16b(d)(1)
and 16b-3(e).

Following the transaction, Mr. Anderson beneficially owned
311,011 shares of Delta common stock, which includes 227,933
shares of restricted stock on which the restrictions have not
lapsed.

2. Edward Bastian

Edward Bastian informed the SEC on March 4, 2008, that he
disposed of 8,405 shares of Delta common stock at US$13.35 per
share on March 1.

The shares that Mr. Bastian disposed represent shares withheld
to pay tax withholding obligations to appropriate taxing
authorities from the lapse of the restrictions on a portion of
his restricted stock.

The withholding was approved by the Personnel & Compensation
Committee of Delta's Board of Directors, and is exempt from
Section 16(b) of the Securities and Exchange Act of 1934 under
Rules 16b(d)(1) and 16b-3(e).

Following the transaction, Mr. Bastian beneficially owned
236,517 shares that include 200,900 shares of restricted stock
on which the restrictions have not lapsed.

                          About Delta Air

Based in Atlanta, Georgia, Delta Air Lines Inc. (NYSE:DAL) --
http://www.delta.com/-- is the world's second-largest airline
in terms of passengers carried and the leading U.S. carrier
across the Atlantic, offering daily flights to 328 destinations
in 56 countries on Delta, Song, Delta Shuttle, the Delta
Connection carriers and its worldwide partners.  Delta flies to
Argentina, Australia and the United Kingdom, among others.

The company and 18 affiliates filed for chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923).
Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents
the Debtors in their restructuring efforts.  Timothy R. Coleman
at The Blackstone Group L.P. provides the Debtors with financial
advice.  Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at
Akin Gump Strauss Hauer & Feld LLP, provide the Official
Committee of Unsecured Creditors with legal advice.  John
McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James
S. Feltman at Mesirow Financial Consulting, LLC, serve as the
Committee's financial advisors.

The Debtors filed a chapter 11 plan of reorganization and
disclosure statement explaining that plan on Dec. 19, 2007.  On
Jan. 19, 2007, they filed revisions to the plan and disclosure
statement, and submitted further revisions to the plan on
Feb. 2, 2007.  On Feb. 7, 2007, the Court approved the Debtors'
disclosure statement.  In April 25, 2007, the Court confirmed
the Debtors' plan.  That plan became effective on April 30,
2007.  The Court entered a final decree closing 17 cases on
Sept. 26, 2007.  (Delta Air Lines Bankruptcy News, Issue No. 92;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
Jan. 18, 2008, Standard and Poor's said that media reports that
Delta Air Lines Inc. (B/Positive/--) entered into merger talks
with UAL Corp. (B/Stable/--) and Northwest Airlines Corp.
(B+/Stable/--) will have no effect on the ratings or outlook on
Delta, but that confirmed merger negotiations would result in
S&P's placing ratings of Delta and other airlines involved on
CreditWatch, most likely with developing or negative
implications.


MACRO MODA: Proofs of Claim Verification Is Until May 7
-------------------------------------------------------
Silvia Ines Trombetta, the court-appointed trustee for Macro
Moda SRL's bankruptcy proceeding, will be verifying creditors'
proofs of claim until May 7, 2008.

Ms. Trombetta will present the validated claims in court as
individual reports on June 18, 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 Macro Moda 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 Macro Moda's
accounting and banking records will be submitted in court on
Aug. 14, 2008.

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

The debtor can be reached at:

          Macro Moda SRL
          Conesa 2662
          Buenos Aires, Argentina

The trustee can be reached at:

          Silvia Trombetta
          Viamonte 1337
          Buenos Aires, Argentina


MINERA SAFY: Proofs of Claim Verification Deadline Is March 31
--------------------------------------------------------------
Angel Vello Vazquez, the court-appointed trustee for Minera Safy
S.A.'s bankruptcy proceeding, will be verifying creditors'
proofs of claim until March 31, 2008.

Mr. Vazquez will present the validated claims in court as
individual reports on May 19, 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 Minera Safy 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 Minera Safy's
accounting and banking records will be submitted in court on
July 2, 2008.

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

The debtor can be reached at:

          Minera Safy S.A.
          Viamonte 367
          Buenos Aires, Argentina

The trustee can be reached at:

          Angel Vello Vazquez
          Parana 275
          Buenos Aires, Argentina


OLD VETIKAR: Trustee to File Individual Reports on June 10
----------------------------------------------------------
Isabel Ana Ramirez, the court-appointed trustee for Old Vetikar
SA's bankruptcy proceeding, will present the validated claims as
individual reports in the National Commercial Court of First
Instance No. 2 in Buenos Aires on June 10, 2008.

Ms. Ramirez will be verifying creditors' proofs of claim until
April 28, 2008.  She will also submit a general report
containing an audit of Old Vetikar's accounting and banking
records in court on Aug. 7, 2008.

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

The debtor can be reached at:

           Old Vetikar SA
           Pasteur 259
           Buenos Aires, Argentina

The trustee can be reached at:

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


PATAGONIA EXPRESS: Proofs of Claim Verification Is Until May 21
---------------------------------------------------------------
Claudio Jorge Haimovici, the court-appointed trustee for
Patagonia Express S.A.'s bankruptcy proceeding, will be
verifying creditors' proofs of claim until May 21, 2008.

Mr. Haimovici 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 Patagonia
Express 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 Patagonia Express'
accounting and banking records will be submitted in court.

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

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

The trustee can be reached at:

          Claudio Jorge Haimovici
          Maipu 267
          Buenos Aires, Argentina


SUN MICROSYSTEMS: To Resell BlueSpace TransMail Trusted Edition
---------------------------------------------------------------
Sun Microsystems Inc. has extended its partnership with
BlueSpace Software Corporation in which BlueSpace has become a
Global Connect Partner and Sun Federal Systems will resell
BlueSpace TransMail Trusted Edition to defense and intelligence
customers.

Sun Federal will be demonstrating TransMail Trusted Edition at
the DoDIIS Conference in San Diego, CA, the week commencing
today, March 17.

Sun and BlueSpace have been closely collaborating over the
introduction and rollout of TransMail Trusted Edition which
fully leverages the multi-level capabilities of Solaris 10 with
Trusted Extensions and the Sun Ray desktop.  TransMail Trusted
Edition provides the defense and intelligence users with a
unified messaging experience across multiple security domains.
The result is much greater user productivity and collaboration
without compromising security.

"Multi-level messaging is such an important collaborative and
knowledge based application for the intelligence community,"
said Bill Vass, President of Sun Federal.  "Our partnership with
BlueSpace provides our customers with infrastructure and
critical applications that enable them to meet their mission
objectives faster, with less risk and at lower cost."

"Sun has made major investments and as a result is a leader in
providing the infrastructure for secure, multi-level
applications," stated Justin Marston, CEO of BlueSpace.  "By
leveraging the unique capabilities of Solaris with Trusted
Extensions and the Sun Ray desktop we were able to bring a much
needed solution to this market in record time."

Edward Bryant, Technical Director at UCDMO, commented, "I see
the BlueSpace application taking advantage of the multi-level
capabilities of currently deployed multi-level clients, and this
is a critical capability needed to meet information sharing
requirements."

In addition to TransMail Trusted Edition, Sun and BlueSpace are
collaborating on the BlueSpace Trusted Client Framework (TCF)
which significantly reduces the time and effort to create multi-
level applications.  The TCF enables "mashups" of data and
applications running at multiple security levels into a single
user experience without sacrificing confidentiality or requiring
expensive cross-domain management, certification and
accreditation processes.

Klaus Weidner, Principal Consultant at Atsec (a Common Criteria
Testing Laboratory in the US) commented that, "The Trusted
Client Framework uses a core trusted component which connects
mutually isolated, single-level application services to provide
what appears to the user to be an integrated multi-level
application. This makes it feasible to pursue a high assurance
level with minimized security testing and accreditation
footprint."

Under the expanded partnership, Sun will resell TransMail
Trusted Edition and the two companies will work together
collaboratively and with other Sun Partners on sales, marketing,
services and support.

                        About Sun Microsystems

Headquartered in Santa Clara, California, Sun Microsystems Inc.
(NASDAQ: SUNW) -- http://www.sun.com/-- provides network
computing infrastructure solutions that include computer
systems, data management, support services and client solutions
and educational services.  It sells networking solutions,
including products and services, in most major markets worldwide
through a combination of direct and indirect channels.

Sun Microsystems conducts business in 100 countries around the
globe, including Brazil, Argentina, India, Hungary, United
Kingdom, Singapore, among others.

                            *     *     *

Sun Microsystems Inc. carries Moody's Investors Service's "Ba1"
probability of default and long-term corporate family ratings
with a stable outlook.  The ratings were placed on Sept. 22,
2006, and Sept. 22, 2005, respectively.

Sun Microsystems also carries Standard & Poor's Ratings
Services' "BB+" long-term foreign and local issuer credit
ratings, which were placed on March 5, 2004, with a stable
outlook.



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


MONTPELIER RE: Names Christopher Harris as Chief Exec. Officer
--------------------------------------------------------------
Montpelier Re Holdings Ltd. has appointed Christopher L. Harris
as chief executive officer, effective July 1, 2008.

Mr. Harris joined Montpelier in 2002, shortly after the
company's formation, as Chief Actuary and was later named Chief
Underwriting and Risk Officer in 2006, and President, effective
Jan. 1, 2008.  Mr. Harris has 18 years of industry experience in
a variety of underwriting, actuarial and risk management
positions.  Mr. Harris succeeded Anthony Taylor who, as
previously announced, will assume the role of Executive Chairman
until December 2009.

Commenting on the appointment, Mr. Taylor said: "Chris has
demonstrated that he is a truly talented insurance leader who
has not only a full understanding of underwriting strategy and
portfolio and risk management but also an astute strategic mind.
Chris was a key player in leading us through an admittedly tough
period following the hurricanes of 2005 and has positioned the
Company well to take advantage of opportunities ahead.  He was
the obvious choice to lead Montpelier going forward."

The company further announced that Mr. Harris has entered into a
new Service Agreement effective July 1, 2008, which secured his
services as President and chief executive officer for three
years, and which may be extended thereafter by mutual agreement.

Pursuant to its succession plan the Company announced a number
of other promotions, also effective July 1, 2008, including the
appointments of David Sinnott as chief underwriting officer and
Timothy Aman as chief risk officer.

Mr. Sinnott joined Montpelier's Bermuda office in 2002 and has
been the company's Chief Reinsurance Officer since May 2005.  He
has 25 years of reinsurance underwriting, risk management and
capital markets experience.  Prior to joining Montpelier, Mr.
Sinnott worked for PartnerRe, Tempest Reinsurance, General Re
and Morgan Stanley.

Mr. Aman joined Montpelier in August 2007 as a Senior Vice
President and risk management officer.  As chief risk officer he
will assume responsibility for all risk management activities
across the Montpelier Group.  He has 19 years of actuarial, cat
modeling, risk management, reinsurance broking and underwriting
experience.  Prior to joining Montpelier, Mr. Aman spent 11
years at Guy Carpenter, most recently as Managing Director for
the Latin America & Caribbean region.

In addition, it was announced that Paul Larrett will assume the
role of Chief Treaty Underwriter of Montpelier Reinsurance Ltd.,
the company's Bermuda based underwriting subsidiary, effective
July 1, 2008.

Mr. Larrett joined Montpelier's Bermuda operations in October
2003 and was responsible for underwriting the Company's
specialty treaty account.  He has 17 years of industry
experience including previous employment at Danish Re,
Copenhagen Re and Wellington Syndicates Ltd.

Commenting on the appointments of Messrs. Sinnott, Aman and
Larrett, Mr. Harris said: "These appointments highlight the
depth of our management team and provide the Company with solid
underwriting and risk management leadership as we look to
further build on our successes."

                    About Montpelier Re Holdings

Headquartered in Bermuda, Montpelier Re Holdings Ltd. --
http://www.montpelierre.bm-- through its operating subsidiary
Montpelier Reinsurance Ltd., provides customized, innovative,
and timely reinsurance and insurance solutions to the global
market.  The company has operations in the United States and
Europe.

                            *     *     *

To date, Montpelier Re Holdings holds A.M. Best's "bb+"
subordinated debt rating and "bb" preferred stock rating.


MONTPELIER RE: S&P Says Ratings Unaffected by Executive Hirings
---------------------------------------------------------------
Standard & Poor's Ratings Services said that its ratings on
Montpelier Re Holdings Ltd. (NYSE:MRH; BBB/Negative/--) and its
operating subsidiary, Montpelier Reinsurance Ltd., are
unaffected by future appointments of a new Chief Executive
Officer, other management executives, and the appointment of a
new Chief Financial Officer.

The company's President, Chief Underwriting Officer, and Chief
Risk Officer, Christopher L. Harris, will succeed Anthony Taylor
as CEO effective July 1, 2008.  Mr. Harris will remain on as
President, but the company will have a new chief underwriting
officer and chief risk officer also effective in the beginning
of July.

It was previously announced that Mr. Taylor would relinquish his
role as CEO sometime after June 30, 2008.  Mr. Taylor is
expected to remain with the company as Executive Chairperson of
the Board until December 2009.

Separately, the company announced on March 11, 2008, that the
company's group controller, Michael Paquette, will succeed
Kernan V. Oberting as chief financial officer, effective May 1,
2008.  Mr. Oberting, through his newly established investment
advisory company, will continue to provide corporate finance,
asset allocation, and investment advisory services to MRH until
2010.

The transitioning management team factor is already captured in
the existing outlook and is mitigated by the continued
relationship of both Mr. Taylor and Mr. Oberting with MRH.

Headquartered in Bermuda, Montpelier Re Holdings Ltd. --
www.montpelierre.bm -- through its operating subsidiary
Montpelier Reinsurance Ltd., provides customized, innovative,
and timely reinsurance and insurance solutions to the global
market.  The company has operations in the United States and
Europe.

                            *     *     *

To date, Montpelier Re Holdings holds A.M. Best's "bb+"
subordinated debt rating and "bb" preferred stock rating.


SECURITY CAPITAL: Posts US$1.1 Billion Net Loss in 4th Qtr. 2007
----------------------------------------------------------------
Security Capital Assurance Ltd reported results for the three-
month and full-year periods ended Dec. 31, 2007.  The net loss
in the fourth quarter of 2007 was US$1,197.9 million versus net
income of US$35.8 million in the fourth quarter of 2006. For the
full-year 2007, the company reported a net loss of US$1,224.5
million versus net income of US$117.4 million, or US$2.18 per
diluted share, for the full-year 2006.  As of Dec. 31, 2007, the
company had total shareholders' equity of US$427.1 million and
common shareholders' equity of US$180.5 million.

"The extraordinary and rapid deterioration in U.S. residential
mortgage- related credits led us to incur record levels of case
reserves in the fourth quarter of last year," said Security
Capital's president and chief executive officer, Paul S.
Giordano.  "We are continuing to explore our strategic options
to generate or raise capital and improve our ratings.  In the
interim, we are in the process of realigning our cost structure
to reflect the current business conditions and have made the
strategic decision to cease writing new business for a period of
time to preserve capital."

For the fourth quarter of 2007, the company had an operating
loss of US$678.1 million compared to operating income of US$37.1
million for the fourth quarter of 2006.  For the full-year 2007,
the operating loss was US$530.3 million compared to operating
income of US$141.9 million for the full year 2006.  The fourth
quarter and full-year 2007 operating losses were primarily due
to the US$651.5 million net case loss provision associated with
the CDO of ABS portfolio and the US$37.2 million net case loss
provision that was incurred during the fourth quarter for HELOC
and CES transactions.  The fourth quarter 2007 net case loss
provisions totaling US$9.5 million, associated with the
company's third party reinsurance business, also contributed to
the operating loss.

The weighted average diluted number of shares used in the "per
share" calculations was 64,169,788 for the fourth quarter and
64,150,375 for the year ended Dec. 31, 2007.  This compared to
weighted average diluted shares of 64,237,292 for the fourth
quarter and 53,718,326 for the year ended Dec. 31, 2006.
Weighted average diluted shares were higher for the full year
2007 because Security Capital was a public company for the
entire twelve months of 2007 compared to only five months in
2006.

Mark-to-Market and Case Loss Provisions:

The net loss during the quarter was primarily due to a US$518.8
million unrealized mark-to- market adjustment on financial
guarantee obligations executed in credit derivative form, and
additional net case loss provisions of US$698.2 million.  The
unrealized mark-to-market adjustment is attributable to
significant changes in the estimated fair value of the company's
credit derivative exposures since the quarter ended Sept. 30,
2007.

The gross case loss reserve provisions of US$838.6 million,
US$651.5 million net of reinsurance, are related to thirteen of
Security Capital's high grade multi-sector CDO of ABS
transactions.  Reinsurance from various subsidiaries of XL
Capital Ltd. and other reinsurers with respect to these CDO of
ABS transactions is expected to result in a US$187.1 million
recoverable.  In addition, the company recorded a gross case
loss provision of US$216.7 million relating to insured HELOC and
CES transactions.  Reinsurance from XL Capital Ltd. and other
reinsurers with respect to these HELOC and CES transactions is
expected to result in a US$179.5 million recoverable, which
would reduce this amount to a net loss provision of US$37.2
million.  The US$9.5 million net case loss provision in the
company's third party reinsurance business represents a full-
limit loss, and was associated with two related transactions in
the international transportation sector.

Cash Flow from Operations:

For the twelve months ended Dec. 31, 2007, net cash flow from
operations was US$285.5 million compared to US$393.5 million in
the comparable twelve month period in 2006.  The decline was
driven by upfront insurance premiums received, which decreased
by approximately US$55.4 million for the full-year 2007 compared
to the full-year 2006.

Holding Company Liquidity:

As of Dec. 31, 2007, Security Capital Assurance Ltd., on a stand
alone basis, had total assets of US$434.1 million and total
liabilities of US$7.1 million.  Cash and cash equivalents were
US$23.5 million while investments in subsidiaries were US$409.5
million.  Common and preference share dividends paid to
shareholders were US$13.5 million for 2007 versus US$1.3 million
for 2006.  The increase in dividends was primarily due to the
issuance of US$250 million of the Security Capital's Series A
Preference Shares in April of 2007.  Common dividends were also
higher in 2007 versus 2006 because the company paid four
quarterly dividends in 2007 versus one quarterly dividend in
2006.

Election Not to Declare Common and Preference Share Dividends:

Security Capital's board of directors elected not to declare
either a quarterly dividend with respect to its common shares or
a semi-annual dividend with respect to the SCA Series A
Preference Shares.  The company expects that this election by
the company's board of directors will reduce cash outflow by
approximately US$9.9 million for the period ended March 31,
2008. Any future dividends will be subject to the discretion and
approval of the board of directors, applicable law and
regulatory requirements.

                       Update on Recent Events

Ratings Actions:

During the fourth quarter of 2007, developments in the creditz
and mortgage markets had a material adverse impact on the
insured portfolios and business, results of operations, and
financial condition throughout the financial guarantee insurance
industry, including Security Capital.  As a result, the rating
agencies have updated their analyses and ratings models for the
industry.  Based on their revised analysis, the following
actions were taken with respect to Security Capital and its
subsidiaries, XL Capital Assurance Inc., XL Capital Assurance
(UK) Limited and XL Financial Assurance Ltd.

On March 4, 2008, Moody's Investors Service announced that it
placed the "A3" (Negative outlook) insurance financial strength
ratings of XL Capital Assurance Inc., XL Capital Assurance (UK)
and XL Financial Assurance Ltd. on review for downgrade.
Previously, on Feb. 7, 2008, Moody's downgraded the IFS ratings
of XL Capital Assurance Inc., XL Capital Assurance (UK), and XL
Financial Assurance Ltd. from "Aaa" to "A3" (Negative Outlook).
On Feb. 25, 2008, Standard & Poor's downgraded the "AAA"
financial strength, financial enhancement and issuer credit
ratings of XL Capital Assurance Inc., XL Financial Assurance
Ltd. and XL Capital Assurance (UK) to "A-" (CreditWatch with
negative implications).  On Jan. 23, 2008, Fitch Ratings
downgraded the insurer financial strength ratings of XL Capital
Assurance Inc., XL Financial Assurance Ltd. and XL Capital
Assurance (UK) to "A" (Rating Watch Negative) from "AAA."

The company's capital position has been determined by the rating
agencies to be insufficient to maintain its historic triple-A
ratings.  It requires additional capital, which may not be
available or may be available only on unfavorable terms.  The
IFS ratings downgrades have, and will likely continue to have,
material adverse effects on Security Capital's business,
including that, at the current time, the company has temporarily
suspended writing substantially all new business.

10-K Update:

In the company's filing with the Securities and Exchange
Commission on Feb. 29, 2008, for an extension of the due date to
file its 10-K, the company indicated that its independent
auditors were evaluating whether their opinion on the financial
statements would include a "going concern" explanatory
paragraph. The company expects to file it's Annual Report on
Form 10-K today, March 17, 2008.

Security Capital expects that the company's independent
auditors' opinion will not contain a going concern explanatory
paragraph.  The company also expects that such opinion will be
unqualified, but will include an explanatory paragraph
highlighting the company's decision to cease writing new
business at the present time.

                 Current Strategic Options and Plan

The company previously announced on March 3, 2008, as a result
of recent developments, Security Capital retained Goldman Sachs
& Co. as a financial advisor to assist the company in evaluating
strategic alternatives, including raising new capital,
structuring reinsurance solutions and negotiating the
commutation or restructuring of certain of the company's
financial guarantee obligations.

Security Capital has also engaged Rothschild, Inc. to assist the
company with a comprehensive review of all strategic options.
The company has been exploring various strategic options with
its advisors and have been in consultation with its regulators
and the rating agencies regarding the various strategies under
consideration.

While Security Capital continues to evaluate the elements of the
strategic plan with its advisors and regulators, the key
elements of the strategic plan primarily include:

    -- Generating capital for rating agency purposes by not
       writing new business for a period of time pending
       clarification of the company's strategic options;

    -- Pursuing the commutation, restructuring or settlement of
       certain obligations insured or reinsured, particularly
       with the company's CDO counterparties, in order to
       mitigate uncertainty around such exposure and generate
       capital for rating agency purposes;

    -- Exploring the commutation, restructuring or settlement of
       ceded reinsurance or other arrangements for Security
       Capital's benefit to generate capital for rating agency
       purposes or improve the company's liquidity position;

    -- Seeking to raise new capital from third parties under more
       favorable conditions than exist at the present time; and

    -- Examining ways to restructure the company's business to
       facilitate the creation or raising of capital by the
       actions described above or by other means.

There can be no assurance that the company's current strategic
plan will not evolve or change over time, will be successfully
implemented or will address the requirements of the rating
agencies.

Termination of Seven Credit Default Swap Contracts.  On Feb. 22,
2008, and March 6, 2008, the company issued notices terminating
seven Credit Default Swap contracts with a certain counterparty
under which the company had agreed to make payments to the
counterparty on the occurrence of certain credit events
pertaining to particular CDOs of ABS referenced in the
agreements. The company issued each of the termination notices
on the basis of the counterparty's repudiation of certain
contractual obligations under each of the agreements.  The
company has been advised by the counterparty that it disputes
the effectiveness of the terminations.  The company intends to
vigorously enforce the terminations.  The notional amount of the
Credit Default Swap contracts at Dec. 31, 2007, aggregated
US$3.1 billion before reinsurance (US$3 billion after
reinsurance).  For the year ended Dec. 31, 2007, the company
recorded a charge of US$632.3 million relating to these Credit
Default Swap contracts of which US$204.9 million represents a
net unrealized loss and is reflected in the company's
consolidated statement of operations in the section captioned
"Net realized and unrealized losses on credit derivatives" and
US$427.4 million represents the provision of case basis reserves
for losses and loss adjustment expenses and is reflected in the
company's consolidated statement of operations in the section
captioned, "Net losses and loss adjustment expenses."

Adjusted Gross Premiums:

The company has temporarily suspended writing substantially all
new business.  Accordingly, the description of adjusted gross
premiums and premiums written is historical and is not
indicative the company's ability to generate similar results in
the future.

Security Capital's adjusted gross premiums, in the fourth
quarter of 2007 declined 21% to US$155.6 million from US$197.2
million in the fourth quarter of 2006. During the fourth quarter
of 2007, United States public finance adjusted gross premiums
increased to US$66.4 million, compared to US$14.4 million in the
fourth quarter of 2006.  The increase was primarily due to
strong premium generation associated with credit enhancing
municipal transactions previously insured by other financial
guarantors.  The company's top-five public finance transactions
insured during the quarter generated adjusted gross premiums of
US$26.6 million. U.S. structured finance adjusted gross premiums
declined by 79% to US$23.1 million in the fourth quarter of 2007
from US$107.6 million in the fourth quarter of 2006.  Security
Capital's structured finance volume declined significantly
during the quarter due to general credit market conditions
combined with the rating agency rating actions that began during
the fourth quarter of 2007.  These events led to significantly
less liquidity in the structured markets during the fourth
quarter of 2007 and continue to impact the market in 2008.
Additionally, several large transactions that closed in the
fourth quarter of 2006 in the global infrastructure,
collateralized debt obligation and specialized risk sectors were
not repeated in the fourth quarter of 2007.  International
adjusted gross premiums decreased 12% to US$66.2 million in the
fourth quarter of 2007 versus US$75.2 million in the fourth
quarter of 2006.  This decrease was mostly due to the closing
of several large transportation infrastructure and utility
transactions in key markets abroad during the fourth quarter of
2006 that were not repeated in the fourth quarter of 2007.
Adjusted gross premiums for the twelve months ended Dec. 31,
2007, was US$549.1 million compared to US$556.1 million in 2006,
representing a decrease of 1% for the year.  Adjusted gross
premiums in the primary insurance segment fell 7% to US$478.6
million from US$514.1 million while the reinsurance segment's
adjusted gross premiums increased 68% to US$70.5 million in 2007
up from US$41.9 million in 2006.  The increase in the
reinsurance segment's adjusted gross premiums was primarily
associated with international business growth.

         Total Premiums Written and Net Premiums Written

Total premiums written, which are comprised of gross premiums
written and reinsurance premiums assumed, declined 31% to
US$91.9 million in the fourth quarter of 2007 versus US$133.6
million in the fourth quarter of 2006.  During 2007, total
premiums written were US$378.3 million, 8% lower than the
premiums written during the year in 2006, which totaled US$409
million.  Total premiums written fell in the fourth quarter of
2007 primarily due to a decrease in "upfront" premium business
derived from several large International transactions written
during the fourth quarter of 2006, which were not repeated in
the fourth quarter of 2007.  Upfront premium transactions
represented nearly 55% of total premiums written in the fourth
quarter of 2007, versus approximately 78% in the fourth quarter
of 2006.

Net premiums written, which comprise total premiums written less
ceded premiums written, decreased 38% to US$74 million in the
fourth quarter of 2007 compared to US$119.4 million in the
fourth quarter of 2006.  Net premiums written decreased 23% to
US$306.1 million in the twelve months ended Dec. 31, 2007,
compared to US$395.9 million of net premiums written in the
twelve months ended Dec. 31, 2006.

Net Premiums Earned:

Net premiums earned increased 29% in the fourth quarter of 2007
to US$57 million compared to US$44.3 million in the fourth
quarter of 2006.  Net premiums earned include accelerated
premiums from refundings.  Refunding premiums increased 44% to
US$2.6 million in the fourth quarter of 2007, compared to US$1.8
million in the fourth quarter of 2006.  Core net premiums
earned, a non-GAAP measure which excludes refunding premiums,
increased 28% to US$54.3 million in the fourth quarter of 2007
from US$42.5 million in the fourth quarter of 2006.

For the full-year ended Dec. 31, 2007, net premiums earned
increased 18% to US$215.7 million compared to US$183.1 million
for the full-year ended Dec. 31, 2006.  Refunding premiums
declined 46% to US$14.7 million in 2007 compared to US$27.4
million in 2006.  There were two large refundings that occurred
in the second quarter of 2006 that were not repeated in 2007.
Core net premiums earned, which excludes refunding premiums,
increased 29% to US$201 million in 2007 from US$155.7 million in
the prior full-year period.

The increase in earned premiums was primarily due to the
company's larger back book of business in U.S. Public Finance
and certain parts of Structured Finance in 2007 versus 2006.
Earned premiums from the reinsurance segment also contributed to
the increase in earned premiums.

             Net Losses and Loss Adjustment Expenses

Net losses and loss adjustment expenses were US$710.9 million in
the fourth quarter of 2007, compared to US$3.6 million in the
fourth quarter of 2006. The increase was due to case loss
provisioning which totaled US$1,064.8 million gross, and
US$698.2 million net of reinsurance.  The case loss provisions
are associated with thirteen CDO of ABS transactions, five HELOC
transactions and one CES transaction that experienced credit
deterioration during the fourth quarter of 2007.  There were
also net case loss provisions associated with the company's
third party reinsurance business which totaled US$9.5 million
and was associated with two related reinsured international
transportation securitizations.  This US$9.5 million net case
loss provision represents a full-limit loss.

For the twelve months ended Dec. 31, 2007, net losses and loss
adjustment expenses were US$720.5 million as compared to US$15
million in the comparable 2006 period.

Through Dec. 31, 2007, the company paid claims aggregating
US$7.5 million on its guarantees of obligations supported by
three HELOCs, US$5 million of which relates to transactions for
which it established a case basis reserve at Dec. 31, 2007.  For
the full year 2007 and through Feb. 15, 2008, the company paid
claims aggregating US$39.2 million, US$28.4 million of which
relates to transactions for which it established a case basis
reserve at Dec. 31, 2007.  There were no paid claims in 2006.

Operating Expenses:

Net operating expenses in the fourth quarter of 2007 were
US$22.7 million, a 4% decrease compared to US$23.6 million
in operating expenses for the same period in 2006.  The decrease
was primarily due to an US$11.1 million reduction in
compensation expenses partially offset by higher legal and
consulting expenses incurred during the quarter.  Operating
expenses for the twelve months ended Dec. 31, 2007, were US$98.9
million and represented a US$19.9 million increase, or 25%, over
2006.  The increase in operating expenses is primarily due to
Security Capital being a public holding company for five months
in 2006 as compared to a full twelve months in 2007.

Corporate expenses, which are included in operating expenses and
are associated with Security Capital being a public holding
company, were US$6.4 million in the fourth quarter of 2007
versus US$3.6 million in the comparable period in 2006.  The
increase was associated with higher legal and consulting
expenses, which were partially offset by lower executive
management compensation costs.  Corporate expenses for the full-
year 2007 were US$18.9 million compared with US$6.4 million for
the full-year 2006.

Acquisition Costs:

Acquisition costs were US$7.8 million for the fourth quarter of
2007, a US$4.6 million increase over the comparable period in
2006.  For the year, acquisition costs were US$20 million, an
increase of US$3.7 million, or 23%, as compared to 2006.  The
increase in acquisition costs in the fourth quarter of 2007 was
primarily due to the acceleration of previously deferred costs
due to the loss provisions established on six HELOC and CES
transactions.  The increase in the full-year costs was due to
the acceleration of previously deferred costs, as well as higher
premium taxes resulting from growth in the company's in-force
business.  Acquisition costs in the reinsurance segment were
US$1.8 million higher in the fourth quarter of 2007 versus the
fourth quarter of 2006 due to higher earned premiums from
reinsurance during the current quarter, and higher associated
expense amortization.

Income Tax Expense:

Income tax expense increased in the fourth quarter of 2007 to
US$25.6 million versus US$0.6 million in the fourth quarter of
2006.  For the full year, the company's income tax expense
increased to US$16.4 million versus US$3.1 million in the prior
full year.  This increase was primarily due to a full write-down
of the company's net deferred tax asset due to cumulative net
operating losses in its XL Capital Assurance Inc. subsidiary.

Net Investment Income:

Net investment income for the fourth quarter of 2007 was US$32.7
million, representing an increase of 32% from US$24.7 million in
the comparable period of 2006.  For the year, net investment
income was US$120.7 million, an increase of US$43 million, or
55%, as compared to 2006.  The increase in full year investment
income was attributable to higher invested asset balances and
higher average book yields.  Average invested assets increased
to US$2.6 billion in the fourth quarter of 2007 compared to
US$2.1 billion in the fourth quarter of 2006.  The increase was
due to positive operating cash flow, income reinvestment and the
investment of US$247 million of net proceeds associated with the
issuance of the SCA Series A Preference Shares in the second
quarter of 2007.  Its average book yield increased to 4.93% in
the fourth quarter of 2007 compared to 4.65% in the fourth
quarter of 2006 as a result of the investment of operating,
financing and investment cash flows at higher interest rates.

Balance Sheet:

Due to the significant case loss provisioning that occurred
during the fourth quarter of 2007, the company's gross loss
reserves, including unallocated loss reserves, increased to
US$1,253.1 million at year-end 2007, from US$178.5 million at
the prior year-end.  Gross case loss reserves were US$1,141.7
million at year-end, versus US$85.4 millionat the end of 2006,
while net case loss reserves were US$709.4 million versus
US$14.5 million, respectively.  The difference between gross
case loss reserves and net case loss reserves are amounts that
the company expects to recover under various reinsurance
contracts.  Net unallocated loss reserves totaled US$92.9
million at the year-end of 2007 versus US$75.4 million at the
year-end of 2006.

As of Dec. 31, 2007, total assets were US$3.604 billion, up 44%
from US$2.497 billion in total assets as of Dec. 31, 2006.  Book
value, as measured by common shareholders' equity, decreased to
US$180.5 million as of Dec. 31, 2007, from US$1.367 billion at
the end of 2006.  Book value attributable to common shareholders
per share was US$2.81 as of Dec. 31, 2007, versus US$21.31 at
Dec. 31, 2006.  The company's total shareholder equity as of
Dec. 31, 2007, was US$427.1 million.

Security Capital's adjusted book value, was US$1.501 billion as
of Dec. 31, 2007, versus US$2.448 billion as of Dec. 31, 2006.
Adjusted book value is a non-GAAP financial measure defined as
shareholders' equity (book value), plus the after-tax value of
deferred premiums, net of prepaid reinsurance premiums and
deferred acquisition costs, plus the after-tax net present value
of estimated future installment premiums in force discounted at
7%.

Book value and adjusted book value per share as of Dec. 31,
2007, were based on the company's issued and outstanding shares
of 64,169,788.  This compares to 64,136,364 shares outstanding
as of year-end 2006.

                About Security Capital Assurance Ltd.

Security Capital Assurance Ltd. (NYSE: SCA) --
http://www.scafg.com-- is a Bermuda-domiciled holding company
whose primary operating subsidiaries, XL Capital Assurance Inc.
and XL Financial Assurance Ltd, provide credit enhancement
and protection products to the public finance and structured
finance markets throughout the United States and
internationally.

                           *     *      *

As reported in the Troubled Company Reporter-Latin America on
Feb. 8, 2008, Moody's Investors Service downgraded the
provisional rating on senior debt to (P)Baa3 from (P)Aa3,
provisional rating on subordinated debt to (P)Ba1  from
(P)A1 and preference shares to Ba2 from A2, for Security Capital
Assurance Ltd.


TYCO INT'L: Taps Arun Nayar as Senior Vice President & Treasurer
----------------------------------------------------------------
Tyco International Ltd. has appointed Arun Nayar as the
company's new Senior Vice President and Treasurer.  Mr. Nayar
will be based in Princeton, New Jersey, and report to Chief
Financial Officer Christopher Coughlin.

"We are pleased to welcome Arun to our team," said Mr. Coughlin.
"Arun brings a wealth of financial leadership skills and
experience to Tyco and a proven track record as a global
financial executive."

Mr. Nayar joins Tyco from Pepsico, Inc., where he most recently
served as Chief Financial Officer of Operations, and prior to
that as Vice President and Assistant Treasurer for its Capital
Markets group.  His career in finance spans more than 35 years
and includes 11 years at the engineering company ABB Ltd. and 11
years at Westinghouse Electric Corporation.  Prior to that, he
was an audit manager with Arthur Andersen LLP in Saudia Arabia.
Mr. Nayar began his career as an audit clerk at Hays Allan, an
accounting firm in London, England.  He received his bachelor's
degree in Economics from India's University of Delhi, India and
is a chartered accountant.

Based in Pembroke, Bermuda, Tyco International Ltd. (NYSE: TYC)
-- http://www.tyco.com/-- provides security, fire protection
and detection, valves and controls, and other industrial
products and services to customers in four business segments:
Electronics, Fire & Security, Healthcare, and Engineered
Products & Services.  With 2007 revenue of US$18 billion, Tyco
employs approximately 118,000 people worldwide.  In Latin
America, Tyco has presence in Argentina, Brazil, Chile, Costa
Rica, Ecuador, Honduras, and the Bahamas.

Effective June 29, 2007, Tyco International Ltd. completed the
spin-offs of Covidien and Tyco Electronics, formerly its
Healthcare and Electronics businesses, respectively, into
separate, publicly traded companies in the form of a
distribution to Tyco shareholders.

                            *     *     *

As reported in the Troubled Company Reporter on Dec. 21, 2007,
in its annual report for the year ended Sept. 28, 2007, Tyco
said that on Nov. 8, 2007, The Bank of New York delivered to the
company a notice of events of default.  The notice claims that
the actions taken by the company in connection with its
separation into three public entities constitute events of
default under certain indentures.



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


AMBAC FINANCIAL: Closes US$1 Bln Public Offering of Common Stock
----------------------------------------------------------------
Ambac Financial Group Inc. completed its US$1.155 billion public
offering of 171,111,111 shares of common stock, par value
US$0.01 per share, at US$6.75 per share.  Ambac also placed
14,074,074 shares of common stock in a private placement for
US$95 million with two financial institutions.

In addition, Ambac also completed its US$250 million public
offering of 5 million equity units, with a stated amount of
US$50 per unit. The equity units carry a total distribution rate
of 9.5%.  The threshold appreciation price of the equity units
is US$7.97 which represents a premium of approximately 18% over
the concurrent public offering price of Ambac's common stock of
US$6.75 per share.

"We were able to execute a significant capital raise in a very
challenging market," Michael Callen, chairman and CEO of Ambac
Financial Group, commented.  "For this, we are thankful to our
investors and other market participants for their strong
support.  Throughout this process, we remained focused on our
ultimate goal of safe-guarding and protecting our triple-A
franchise.  This is a critical milestone in our plan to restore
market confidence in our financial strength.  The current market
environment offers an excellent opportunity for Ambac to
capitalize on its long-standing relationships in many sectors."

Ambac intends to contribute the net proceeds from these
offerings to its insurance company subsidiary Ambac Assurance
Corporation in order to increase its capital position, less
approximately
US$100 million, which it intends to retain at Ambac to provide
incremental holding company liquidity to pay principal and
interest on its indebtedness, to pay its operating expenses and
to pay dividends on its capital stock.

Proceeds from the settlement of the purchase contracts forming a
part of the equity units, in May 2011, will be used to repay
US$142.5 million of the company's debt maturing Aug. 1, 2011, to
the extent that the cash proceeds of such settlement are
sufficient for such repayment.  The remaining proceeds will be
retained at Ambac.  Proceeds from the settlement of the purchase
contracts will not be used to repurchase common stock.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets
Inc., Banc of America Securities LLC and UBS Investment Bank
were joint book-running managers, and Keefe Bruyette & Woods
Inc., Dresdner Kleinwort Securities LLC, BNY Capital Markets
Inc. and KeyBanc Capital Markets Inc. were co-managers, for the
common stock offering.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets
Inc., Banc of America Securities LLC and UBS Investment Bank
were joint book-running managers, and Keefe Bruyette & Woods
Inc. was also a co-manager, for the equity units offering.
Sandler O'Neill + Partners L.P. served as independent financial
advisor to Ambac with respect to these offerings.

                     About Ambac Financial

Based in New York City, Ambac Financial Group, Inc. is a holding
company whose affiliates provide financial guarantees and
financial services to clients in both the public and private
sectors around the world.  The company has operations in Brazil.

For the nine months ended Sept. 30, 2007, Ambac reported net
income of US$26 million.  As of Sept. 30, 2007, Ambac had
shareholders' equity of approximately US$5.65 billion.

                            *    *    *

On Jan. 18, Fitch Ratings downgraded Ambac to double-A after the
insurer put off plans to raise equity capital.

As reported by the Troubled Company Reporter on Jan. 17, 2008,
Moody's Investors Service placed the Aaa insurance financial
strength ratings of Ambac Assurance Corporation and Ambac
Assurance UK Limited on review for possible downgrade.  In the
same rating action, Moody's also placed the ratings of the
holding company, Ambac Financial Group, Inc. (senior debt at
Aa2), and related financing trusts on review for possible
downgrade.  Moody's stated that this rating action follows
Ambac's announcement of record losses, a capital raising plan,
and the retirement of its CEO.


BRASIL TELECOM: Management Renumeration Voting Is Set Tomorrow
--------------------------------------------------------------
Brasil Telecom S.A. and Brasil Telecom Participacoes S.A.
disclosed to the market the proposal for the total remuneration
of the companies' management, which will be voted in their
respective Extraordinary General Shareholders' Meetings to be
held tomorrow, March 18, 2008.

The proposal is available in the Companies' headquarters since
the publication of the Shareholders Meetings' Summons Notices,
on Jan. 31, 2008.

                      About Brasil Telecom

Headquartered in Brasilia, Brazil, Brasil Telecom Participacoes
SA -- http://www.brasiltelecom.com.br-- is a holding company
that conducts substantially all of its operations through its
wholly owned subsidiary, Brasil Telecom SA.  The fixed-line
telecommunications services offered to the company's customers
include local services, including all calls that originate and
terminate within a single local area in the region, as well as
installation, monthly subscription, measured services, public
telephones and supplemental local services; intra-regional
long-distance services, which include intrastate and interstate
calls; interregional and international long-distance services;
network services, including interconnection and leasing; data
transmission services; wireless services, and other services.

                         *     *     *

To date, Brasil Telecom carries Moody's Investors Service's Ba1
senior unsecured and credit default swap ratings.


BRASKEM SA: Sets Shareholders' General Meeting for March 26
-----------------------------------------------------------
Braskem S.A. informed its shareholders of the Ordinary and
Extraordinary General Meetings on March 26, 2008, 10:00 a.m., at
the company's headquarters located at Rua Eteno, 1.561, Polo
Petroquimico, Municipality of Camacari, State of Bahia.

The purpose of the meeting is to consider these items:

    I) ORDINARY GENERAL MEETING

       1) Review, discussion and voting on the Management Report
          and respective Managers' Accounts and Financial
          Statements, enclosing Notes regarding the fiscal year
          ended at Dec. 31, 2007;

       2) Approval of a Capital Budget contained in the 2008/2014
          Business Plan, which justifies the proposal for
          allocation of the company's results;

       3) Approval of the allocation of the results for the
          fiscal year ended at Dec. 31, 2007, including a
          proposal for dividend distribution;

       4) Election of the members of the Board of Directors;

       5) Election of the members of the Fiscal Board; and

       6) Determination of the aggregate yearly compensation of
          the managers and the members of the Fiscal Board;

   II) EXTRAORDINARY GENERAL MEETING

       Ratification of the transaction involving purchase of
       control of the petrochemical assets of the Ipiranga Group,
       as deliberated by the Board of Directors of the company on
       March 18, 2007, the implementation of which has been
       widely disclosed, and was completed on Feb. 27, 2008, in
       compliance with the provisions in article 256 of
       Law 6404/76.

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

                           *     *    *

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


COMPANHIA SIDERURGICA: Fitch Sees 2008 as Record Year for Firm
--------------------------------------------------------------
Against a backdrop of rising iron ore prices, Brazilian steel
producers should maintain high profit margins relative to their
global peers during 2008, according to Fitch Ratings.  Brazilian
steel companies enjoy important competitive advantages,
including modern production facilities, close proximity to
sources of iron ore and a highly concentrated domestic market,
which limits competition based upon prices.  Additionally, the
Brazilian steel industry benefits from barriers to entry from
imported steel due to the logistical challenges of transporting
steel to and within Brazil, as Brazilian steel producers own or
have privileged access to large steel distributors.

According to Fitch's Latin America Corporates Group Director,
Anita Saha, "The strategic sourcing of raw material inputs
serves as a competitive advantage for steelmakers in the current
environment of unusually high commodity prices, and Brazilian
steel producers are particularly well-positioned in this
regard."

Producers that are not backwards-integrated into either coal or
iron ore are facing margin pressure in 2008 as coal and iron ore
prices are expected to increase by nearly 100% and 65%,
respectively.  Iron ore and coking coal account for more than
one-third of a typical integrated steelmakers' cost of goods
sold.  Non-integrated producers of steel are also under cost
pressure due to high prices for energy and metallic inputs, such
as scrap and direct reduction pellets.  Globally, steel
producers are counting on high demand for steel products and low
inventory levels to enable them to pass price increases on to
customers in order to maintain profit margins.

According to the Brazilian Steel Institute, steel consumption in
Brazil is expected to increase about 10%-15% in 2008 to reach 23
million tons, supported by strong demand from the civil
construction, automobile and domestic appliance sectors.  This
level of growth is consistent with Fitch's expectation that
economic growth in Brazil will be in excess of 4% during 2008
and 2009.  Additionally, steel producers in Brazil have already
obtained or are currently negotiating price increases of about
10% for domestic sales.

If steel demand in Brazil meets expectations, producers may be
able to obtain further price increases later on in the year.
However, should global prices slide and trade become more
difficult, Brazilian companies could be challenged to match 2007
profit margins as about one-third of the country's total steel
sales volume comes from exports.

Companhia Siderurgica Nacional:

Relative to other steel producers within Brazil and throughout
the world, Brazilian flat steel producer Companhia Siderurgica
Nacional is poised to have a record year due to continued high
steel prices and incremental earnings from iron ore sales.  The
is self-sufficient in iron ore due to its ownership of the Casa
de Pedra mine, one of the world's largest high-quality iron ore
bodies.

Companhia Siderurgica is investing approximately US$2.8 billion
to expand its iron ore mining capacity to 75 million tons in
2012 and 85 million tons in 2013 from about 20 million tons
currently, making it one of the largest iron ore producers.
Beginning in 2008, the company's iron ore sales are expected to
increase to more than 30 million tons, resulting in annual
incremental EBITDA of about US$1.2 billion in 2008 and US$1.7
billion in 2009.

Usinas Siderurgicas de Minas Gerais:

Usinas Siderurgicas de Minas Gerais (aka. Usiminas), a flat
steel producer that is owned by a group of Brazilian and
Japanese industrial and financial entities, has followed
Compahia Siderurgica Nacional's lead into iron ore.  The company
reached an agreement in February 2008 to purchase J. Mendes, a
group of Brazilian iron ore mining companies, for up to US$1.9
billion, depending on the size and quality of the mines'
reserves.  In the short-term, the company will still incur iron
ore cost increases for much of its consumption.  However, in the
more intermediate-term, Usiminas stands to benefit from higher
iron ore prices as the J. Mendes acquisition will allow the
company to become self-sufficient in iron ore within several
years and thus less reliant on higher cost, third-party sources.
Additionally, J. Mendes produces about 6,000,000 tons of iron
ore which will continue to be sold under existing contracts to
third parties, providing the company with a partial hedge
against the iron ore cost increase.

Usiminas plans to invest approximately US$750 million to develop
transportation infrastructure and increase production at the J.
Mendes mines to 29 million tons of iron ore by 2013, essentially
providing the company with all of its iron ore needs on a hedged
basis, as the company's Ipatinga steel mill will continue to
purchase iron ore from Companhia Vale do Rio Doce due to its
location in Minas Gerais and transportation constraints.  The
company's iron ore export sales will offset the cost of the ore
purchased from this local source.  With efficient and modern
production facilities and proximity to iron ore supplies, the
company is expected to continue to enjoy high EBITDA margins
relative to global steel producers of about 33% as it expands
its steel production capacity to 12.7 million tons by 2012, from
9,000,000 tons currently.

Gerdau SA:

Gerdau S.A. produces both long and flat steel via the mini-mill
and integrated steel production processes.  Mini-mills use
primarily scrap metal as an input to produce steel.  The company
enjoys privileged access to numerous local scrap suppliers, but
also remains reliant on various third-party sources for most of
its iron ore supplies.  But unlike other large Brazilian steel
mills,  Gerdau's integrated steel mill, Ouro Branco, is not
completely dependent on Vale for its iron ore supplies.  The
mill purchases ore from many small mines in the region and
receives shipments quickly by truck and train due to its
location in the southern state of Minas Gerais.  The company
also has mining rights under Companhia Paraibuna de Metais.  The
Paraibuna mines enhance and diversify Gerdau's iron ore supply
chain as they are close to the Ouro Branco mill.  Currently
about 2.5 million tons per year, or 30% of the iron ore consumed
at the company's Ouro Branco mill, comes from these internal
sources.

In 2008, Gerdau's mines are expected to supply 45% of the iron
ore consumed by Ouro Branco and, with investments of US$120
million, to provide 80% of the iron ore supply by 2011.
Consistent with the other Brazilian steelmakers, Gerdau remains
well-positioned vis-a-vis its global peers to withstand input
cost pressures and maintain high EBITDA margins of 22%.

ArcelorMittal Brasil:

ArcelorMittal Brasil also produces both flat and long steel at
its Brazilian operating subsidiaries ArcelorMittal Tubarao and
ArcelorMittal Belgo, respectively.  Unlike the other large
Brazilian steel producers, Tubarao does not own any iron ore
mines and relies on third-party sources, primarily Vale, for its
iron ore supplies.  This dependency is somewhat offset by the
advantage of being in close proximity to iron ore supplies.
However, Tubarao operates modern efficient production facilities
with a low cost structure relative to its global peers and
generates significant export revenues from the sale of high
quality steel slabs and hot-rolled products.

Both Tubarao and Belgo benefit from the scale, expertise and
financial resources of parent company ArcelorMittal, the world's
largest steel producer, and will also likely maintain high
profit margins versus their global peers during 2008.

                  About Companhia Siderurgica

Headquartered Sao Paolo, Brazil, Companhia Siderurgica Nacional
S.A. -- http://www.csn.com.br/-- produces, sells, exports and
distributes steel products, like hot-dip galvanized sheets, tin
mill products and tinplate.  The company also runs its own iron
ore, manganese, limestone and dolomite mines and has strategic
investments in railroad companies and power supply projects.
The group also operates in Brazil, Portugal and the U.S.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Dec. 27, 2007, Standard & Poor's Ratings Services revised its
outlook on Brazil-based steel maker Companhia Siderurgica
Nacional and related entity National Steel S.A. to positive from
stable.  At the same time, Standard & Poor's affirmed its 'BB'
corporate credit rating on CSN and its 'B+' rating on NatSteel.


CYRELA BRAZIL: Net Income Rises 74.2% to BRL422 Million in 2007
---------------------------------------------------------------
Cyrela Brazil Realty S.A. Empreendimentos e Participacoes
reported its results for the fourth quarter and year 2007.  The
financial and operational information herein, except where
otherwise indicated, is presented in BR GAAP and in Brazilian
reais (BRL) and comparisons refer to the same period in 2006.

                           2007 Highlights

  Launches:             BRL 5,393.1 million (increase of 84.9%);
  Pre-Sales Contracts:  BRL 4,391.9 million (increase of 129.3%);
  Net Revenue:          BRL 1,707.3 million (increase of 52.9%);
  Gross Profit:         BRL 703.2 million (increase of 49.1%);
  Gross Margin:         41.2 % (vs. 42.2% in 2006);
  EBITDA:               BRL 390.6 million (increase of 57.2%);
  EBITDA Margin:        22.9 % (vs. 22.3% in 2006);
  Net Income:           BRL 422.1 million (increase of 74.2%)
  Net Margin:           24.7% (vs. 21.7% in 2006).

Headquartered in Sao Paulo, Brazil, Cyrela Brazil Realty S.A.
Empreendimentos e Participacoes --
http://www.brazilrealty.com.br/-- is the most complete company
of the Brazilian real estate market, acting as a residential
real estate developer in 14 Brazilian states and in Argentina;
it also operates in the construction and real estate brokerage
segments.  The company is listed on the Bovespa's Novo Mercado
under the ticker CYRE3.

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
July 17, 2007, Standard & Poor's Ratings Services assigned its
'BB' rating to the 10-year unsecured and unsubordinated notes
denominated in Brazilian reals and payable in US dollars, in the
aggregate amount of BRL500 million, issued by Cyrela Brazil
Realty S.A. Empreendimentos e Participacoes.  At the same time,
S&P affirmed its 'BB' long-term corporate credit rating and its
'brAA-' Brazil National Scale corporate credit rating on Cyrela,
and its 'brAA-' issue rating on the company's seven-year
Brazilian reais BRL500 million debentures.  S&P said the outlook
is stable.

In July 2007, Fitch Ratings assigned a Foreign and Local
Currency Issuer Default Rating 'BB' to Cyrela Brazil Realty S.A.
Empreendimentos e Participacoes.  Fitch also assigned a rating
of 'BB' to its issuance of approximately BRL500 million real-
denominated unsecured notes due 2017, with payments of the notes
in U.S. dollars based on prevailing exchange rate of Reals per
U.S. dollar.  Proceeds of the issuance will be used to acquire
land and launch new developments, to provide more customer
financing, to pay debt, and also for other general corporate
purposes.  Fitch's outlook is stable.


DRAKE MGMT: May Liquidate US$2.7-Bil. Global Opportunities Fund
---------------------------------------------------------------
Drake Management LLC may shut and liquidate its US$2.7 billion
Drake Global Opportunities fund -- its largest hedge fund,
various reports say.

In an 11-page letter to investors dated March 12, Drake said it
would continue to restrict redemptions or allow clients to shift
assets to a new fund, Bloomberg News says.  Drake said it "would
seem more probable that the market disruptions we have
experienced will not abate in the short term, but will instead
continue for some time."

Katherine Burton and Tom Cahill at Bloomberg News report that
Drake blocked most redemptions in December after the fund
declined 25% last year. Drake oversaw about US$13 billion in
total for clients at the end of 2007, Bloomberg says.

According to The Wall Street Journal, citing a person familiar
with the situation, Drake also is likely to stop investor
withdrawals from its two other hedge funds, including its
US$1.5 billion Drake Absolute, which fell 14.4% in 2007 and was
down 5% this year as of the end of February.

Bloomberg's Ms. Burton and Mr. Cahill, citing a  year-end report
sent to investors, relate that Drake lost much of its money last
year from bad bets on U.S. Treasuries, as well as Japanese bonds
and stocks in developed markets.  The fund manager borrowed
about US$12 for every US$1 of net assets as of Dec. 31.

Bloomberg relates that Global Opportunities investors who choose
to go to the new fund could opt for two share classes --
investors would pay fees of 1.5% of assets and 20% of profits,
and would agree to stay in the fund for a year, although they
could exit earlier by paying a penalty of as much as 10%; or
investors could charge fees of 1.5% of assets and 15% of gains,
but wouldn't have the option of redeeming early.

Drake would have to make up investors' losses from the previous
fund before charging performance fees, according to Bloomberg.

Drake spokesman Shawn Pattison declined to comment, Bloomberg
relates.

Bloomberg notes that hedge funds with more than US$5.4 billion
have been forced to liquidate or sell assets since Feb. 15 as
contagion from the U.S. subprime slump spreads.  Those funds
include Peloton Partners LLP's US$1.8 billion ABS Fund, Tequesta
Capital Advisor's mortgage fund and Focus Capital Investors LLC,
which invested in midsize Swiss companies.

Amsterdam, The Netherlands-based Global Opportunities (GO)
Capital Asset Management B.V. on Tuesday also blocked investor
withdrawals until March 2009.  GO Capital has about US$870
million of assets under management, focusing on European shares.
The Journal says GO Capital has been reducing its investments in
certain small-capitalization stocks but found it increasingly
hard to find buyers for its positions, which was driving down
prices.

Frans van Schaik, a founding partner at GO Capital, explained
suspension of redemptions was a pre-emptive measure to safeguard
the interests of the fund's investors, the Journal reports.  Mr.
van Schaik said the fund isn't leveraged and isn't facing margin
calls, the Journal says.

New York-based Drake is an investment advisor registered with
the Securities and Exchange Commission, specializing in active
fixed income strategies.  The firm was founded in May 2001  with
the goal of delivering attractive risk-adjusted returns for
substantial investors worldwide.  Founded by Anthony Faillace
and Steve Luttrell, who both previously worked at New York-based
BlackRock and Pacific Investment Management Co. in Newport
Beach, California, Drake began managing assets in January 2002.
Drake currently manages more than US$10 billion.

With more than 100 professionals, Drake has offices in Tokyo,
Japan; Miami, Florida; Sao Paulo, Brazil; and Istanbul, Turkey.


FIAT SPA: FPT Unit Acquires Tritec Motors' Plant from Chrysler
--------------------------------------------------------------
Fiat Powertrain Technologies, a unit of Fiat S.p.A., signed an
agreement with Chrysler LLC to take over full ownership of the
Tritec Motors plant located in Campo Largo, in the metropolitan
region of Curitiba.

The purchase includes the facilities, the manufacturing unit,
the production lines and the license to produce the current
range of products.  Total investment in this initiative will
amount to BRL250 million (EUR83 million) including further
development costs.

In addition to acquiring one of the world's most modern engine
factories, FPT also announced that the Campo Largo manufacturing
unit will produce a new range of mid-size gasoline and flex-fuel
engines.  This product will be developed jointly by the
Engineering Centers in Betim and Torino, working together with
staff at the Campo Largo plant.

The acquisition of this plant by FPT – FIAT Powertrain
Technologies will create approximately 500 direct jobs and 1,500
indirect jobs, thus contributing significantly to economic
growth in the city of Campo Largo, the local industrial district
and the entire state of Parana.

"Acquiring the Campo Largo manufacturing facility will enable us
to reach two main strategic goals: first, to attract an even
larger number of non-captive customers for this product,"
Alfredo Altavilla, FPT CEO, said.  "Secondly, to widen our
product portfolio, offering a new extremely modern and
competitive product range."

"The announcement is great news and provides a stable future for
Tritec under the ownership of Fiat Powertrain Technologies,"
said Chrysler Vice Chairman and President Tom LaSorda.

Headquartered in Auburn Hills, Michigan, Chrysler LLC --
http://www.chrysler.com/-- a unit of Cerberus Capital
Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R)
brand vehicles and products.  The company has dealers worldwide,
including Canada, Mexico, U.S., Germany, France, U.K.,
Argentina, Brazil, Venezuela, China, Japan and Australia.

                       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.

                         *     *     *

To date, Fiat S.p.A. and its subsidiaries carry Ba3 Corporate
Family and Senior Unsecured Ratings from Moody's Investors
Service, which said the outlook is positive.

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


FIAT SPA: John Elkann Takes Over as Editrice La Stampa Chairman
---------------------------------------------------------------
The board of directors of Editrice La Stampa S.p.A., a unit of
Fiat S.p.A., has elected John Elkann as Chairman, replacing
Sergio Pininfarina.

The Chairman and the Board thank Sergio Pininfarina, who seats
as a life Senator at Italy's Senate, for his contribution to the
Company.

Luigi Vanetti, at present General manager of Editrice La Stampa,
was asked to join the Board of the publishing house as a
director.

Separately, the Board of Directors of ITEDI, the holding company
that encompasses the Publishing operations and the Communication
activities of Fiat Group and is chaired by John Elkann, has
named Luigi Vanetti as CEO and Director General.

                       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.

                          *     *     *

To date, Fiat S.p.A. and its subsidiaries carry Ba3 Corporate
Family and Senior Unsecured Ratings from Moody's Investors
Service, which said the outlook is positive.

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: Wants to Take Tools If Plastech Stops Delivery
--------------------------------------------------------------
General Motors Corporation seeks relief from the automatic stay
under Section 362(d) of the U.S. Bankruptcy Code to allow it to
recover certain equipment in the event Plastech Engineered
Products, Inc., and its debtor-affiliates fail to produce
component parts for GM vehicles.

General Motors has provided to the Debtors via bailment, certain
supplies, materials, tools, jigs, dies, gauges, fixtures, molds,
patterns, equipment and other items to enable the Debtors to
manufacture parts unique to GM's vehicles.

On Feb. 12, 2007, and January 22, 2008, Plastech entered into
Financial Accommodation Agreements with GM and other major
customers.  Under the Agreements, GM provided significant
accommodations to Plastech, including a payment of US$11,500,000
beyond GM's otherwise existing contractual obligations to the
company.  In exchange, Plastech agreed to grant immediate
possessory rights to tooling paid by the Major Customers.

GM did not disclose the value of tooling in the Debtors'
possession that it had paid for.

Scott A. Wolfson, Esq., at Honigman Miller Schwartz and Cohn
LLP, in Detroit, Michigan, informs the U.S. Bankruptcy Court for
the Eastern District of Michigan that GM has strongly supported
Plastech through financial and other accommodations, and will
continue its discussions with Plastech and others in pursuit of
the Debtors' efforts to emerge from Chapter 11 as competitive,
viable suppliers or, if a reorganization is not possible, to
effectuate an orderly wind-down, respectful of the interests of
all customers and other constituents.

However, the uncertainties confronting Plastech are self-
evident, Mr. Wolfson avers.  He notes that Plastech has only
obtained a limited amount and duration of its debtor-in-
possession loan and has already advised GM that it plans to
close four facilities where GM component parts are made.

According to Mr. Wolfson, GM must prepare for contingencies and
circumstances in which Plastech cannot or otherwise fails to
deliver components to GM on a timely basis, thereby placing GM's
assembly operations in jeopardy with consequential prejudice and
actual harm to GM, its over 100,000 employees and those persons
and