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

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

            Tuesday, March 18, 2008, Vol. 9, No. 55

                            Headlines


A R G E N T I N A

COOPERATIVA DE VIVIENDA: Files for Reorganization in Court
CREDITO IMPERIAL: Proofs of Claim Verification Is Until May 13
INTERPESCA SA: Trustee to File Individual Reports on March 21
MACCHIA Y VOGT: Trustee to Verify Proofs of Claim Until May 2


B A H A M A S

ULTRAPETROL (BAHAMAS): Earns US$4.4 Mil. in Year Ended Dec. 31


B E R M U D A

FOSTER WHEELER: Unit Bags Contract for Repsol YPF Coker Complex
PETROPLUS FINANCE: S&P Publishes Recovery Analysis In Report
PETROPLUS FINANCE: S&P Rates US$500MM Sr. Convertible Notes BB-
SCOTTISH RE: NYSE Suspends Common and Preferred Stock


B R A Z I L

BANCO BRADESCO: Goldman Downgrades Shares to Neutral from Buy
BANCO DAYCOVAL: Goldman Keeps Neutral Rating on Firm's Shares
BANCO DO BRASIL: Unit Names Marco Antonio da Silva as Director
BANCO DO BRASIL: Goldman Sachs Upgrades Shares to Buy from Sell
BANCO ITAU: Goldman Sachs Downgrades Shares to Sell from Neutral

BANCO NACIONAL: Inks Cooperation Pact With 2 Social Devt Groups
CIA. ENERGETICA: Net Profit Increases 1% to BRL1.74 Bln. in 2007
COMMSCOPE INC: Earns US$37.6 Million in 2007 Fourth Quarter
COSAN SA: Incurs US$59.7 Million Loss in Third Quarter FY2008
DELPHI CORP: S&P Still Expects to Designate 'B' Corporate Rating

DIOMED HOLDINGS: Case Summary & 20 Largest Unsecured Creditors
DIOMED HOLDINGS: Files for Chap. 11; To Sell Assets to Biolitec
GERDAU: Court Denies Momentum's Injunction to Halt Macsteel Buy
GOL LINHAS: Inks Interline Agreement With UAE & Turkish Airlines
MERCANTIL DO BRASIL: Eyes 20% Growth in Loans This Year

UNIAO DE BANCOS: Goldman Keeps Sell Recommendation on Shares
USINAS SIDERURGICAS: Will Increase Products' Price by 12%
* BRAZIL: S&P Issues Report on ABS & Loss/Deliquency Ratios


C A Y M A N  I S L A N D S

ARIANE HEALTH: Will Hold Final Shareholders Meeting on March 20
BALLANTYNE RE: Moody's Lowers Ratings on US$300 Million Notes
DRI INTERNATIONAL: Sets Final Shareholders Meeting for March 20
PARMALAT SPA: Main Trial Over Collapse Commenced Last Friday
TELEWEB, INC: Will Hold Final Shareholders Meeting on March 20

YY PROPERTY: Sets Final Shareholders Meeting for March 20


C H I L E

SCIENTIFIC GAMES: Signs Two Six-Year Deals With Nassau Company
* CHILE: Fitch Publishes Special Report on 2008 Energy Crisis


C O S T A  R I C A

SIRVA INC: Plan Confirmation Hearing Rescheduled to April 18
SIRVA INC: Seeks to Set Dates for Plan Confirmation Discovery
SIRVA INC: Triple Net, et al. Object to Plan of Reorganization


E L  S A L V A D O R

* EL SALVADOR: Fitch Sees Insurance Industry Improvement in 2008


J A M A I C A

AIR JAMAICA: Ticket Policy for Gov't Officials to be Reviewed


M E X I C O

CLEAR CHANNEL: Closes Sale of Television Group for US$1.1 Bil.
GRUPO GIGANTE: Prepayment Cues Fitch to Affirm/Withdraw Ratings
METROFINANCIERA SA: S&P Holds Counterparty Credit Rating at B+
SHARPER IMAGE: Garmin USA Wants Payment for Administrative Claim


P U E R T O  R I C O

ADELPHIA COMMS: Former Headquarters Sold for US$3,600,000
GRUPO CIMA: Case Summary & Two Largest Unsecured Creditors
PULTE HOMES: Two Vegas Projects Receive Notices of Default


U R U G U A Y

NUEVO BANCO: Advent Int'l May Sell Bank to Gilinski Group


V E N E Z U E L A

CITGO PETROLEUM: Station Will be Changed to Mini-Mart
PETROLEOS DE VENEZUELA: Books US$3.5 Bil. Net Profit in 2007
PETROLEOS DE VENEZUELA: UK Judge Delays Ruling on Exxon Lawsuit
PETROLEOS DE VENEZUELA: To Sign Some Oil Deals in Euros


X X X X X X

* Large Companies with Insolvent Balance Sheet


                         - - - - -


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

COOPERATIVA DE VIVIENDA: Files for Reorganization in Court
----------------------------------------------------------
Cooperativa de Vivienda, Credito y Consumo Surikata Ltda. has
requested for reorganization approval after failing to pay its
liabilities since June 2007.

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

The case is pending in the National Commercial Court of First
Instance No. 8 in Buenos Aires.  Clerk No. 15 assists the court
in this case.

The debtor can be reached at:

           Cooperativa de Vivienda, Credito y
           Consumo Surikata Ltda.
           B. Mitre 777 Piso
           Buenos Aires, Argentina


CREDITO IMPERIAL: Proofs of Claim Verification Is Until May 13
--------------------------------------------------------------
Hector Arzu, the court-appointed trustee for Credito Imperial
Argentina SA's bankruptcy proceeding, will be verifying
creditors' proofs of claim until May 13, 2008.

Mr. Arzu will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 5 in Buenos Aires, with the assistance of Clerk
No. 9, 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 Credito Imperial 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 Credito Imperial's
accounting and banking records will be submitted in court.

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

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

The debtor can be reached at:

         Credito Imperial Argentina SA
         Maipu 1300
         Buenos Aires, Argentina

The trustee can be reached at:

         Hector Arzu
         Junin 55
         Buenos Aires, Argentina


INTERPESCA SA: Trustee to File Individual Reports on March 21
-------------------------------------------------------------
Ricardo Daniel Morel, the court-appointed trustee for Interpesca
S.A.'s reorganization proceeding, will present validated claims
as individual reports before the National Commercial Court of
First Instance in Rawson, Chubut, on March 21, 2008.

Mr. Morel verified creditors' proofs of claim until
Feb. 8, 2008.  The trustee will also submit in court a general
report containing an audit of Interpesca's accounting and
banking records on May 9, 2008.

Creditors will vote to ratify the completed settlement plan
during the assembly on Oct. 23, 2008.

The debtor can be reached at:

          Interpesca S.A.
          Lote 1, Macizo 6, Puerto de Rawson
          Chubut, Argentina

The trustee can be reached at:

          Ricardo Daniel Morel
          26 de Noviembre 38 Playa Union
          Rawson, Chubut
          Argentina


MACCHIA Y VOGT: Trustee to Verify Proofs of Claim Until May 2
-------------------------------------------------------------
Pablo Guillermo Arenal, the court-appointed trustee for Macchia
y Vogt Los Cunados S.R.L.'s reorganization proceeding, will be
verifying creditors' proofs of claim until May 2, 2008.

Mr. Arenal will present the validated claims in court as
individual reports on June 13, 2008.  The National Commercial
Court of First Instance in Bahia Blanca, 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 Macchia y Vogt 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 Macchia y Vogt's
accounting and banking records will be submitted in court on
Aug. 7, 2008.

Creditors will vote to ratify the completed settlement plan  
during the assembly on March 20, 2009.

The debtor can be reached at:

        Macchia y Vogt Los Cunados S.R.L.
        Urquiza 102, Bahia Blanca
        Buenos Aires, Argentina

The trustee can be reached at:

        Pablo Guillermo Arenal
        Brown 252, Bahia Blanca
        Buenos Aires, Argentina



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

ULTRAPETROL (BAHAMAS): Earns US$4.4 Mil. in Year Ended Dec. 31
--------------------------------------------------------------
Ultrapetrol (Bahamas) Limited released its financial results for
the fourth quarter and full year ended Dec. 31, 2007.

Net income for the full year and fourth quarter 2007 was
US$4.4 million and US$6.3 million, respectively, as compared
with income of US$10.5 million and loss of US$2.8 million,
respectively, during the same periods in 2006.  The 2007 results
include a non-cash mark-to-market net loss on FFA hedges of
US$11.7 million and a gain of US$2.6 million (full year and
fourth quarter 2007 respectively) and a deferred income tax
charge of US$3.3 million and a deferred income tax gain of
US$0.3 million from unrealized foreign currency exchange rate
gains on U.S. dollar denominated debt of our Brazilian
subsidiary in the Offshore Supply Business (full year and fourth
quarter 2007 respectively).  Net Income for the full year and
fourth quarter 2007, excluding the effect of both above items,
is a gain of US$19.4 million and US$3.4 million, respectively.

Felipe Menendez, Ultrapetrol's President and Chief Executive
Officer said "During 2007 we recorded strong results in our core
business segments which grew in volume and generated higher
total revenue and EBITDA than any other year in the Company's
history.  During 2007, we implemented substantially all the
strategic initiatives that we had targeted and believe that we
have laid the foundation for very significant and vigorous
growth in all of our core business segments.  In our river
business, the building of the most modern barge building yard in
South America is underway.  We have begun to receive the first
heavy fuel engines to re-power our push boats and our barge
enlargement program is being executed as previously announced.
We believe that we will be able to satisfy the future potential
demand for the barge transport in the region by creating the
necessary additional capacity cost effectively while we reduce
our cost per ton with fuel efficiency and unparalleled economies
of scale. Our expansion program in the river occurs
simultaneously with the USDA estimate of a 2008 record crop in
an important area of the Hidrovia."

Mr. Menendez added, "Within the next three years, we expect to
more than double our offshore fleet. We have ordered six new
Offshore Platform Supply Vessels from yards in India and China,
which are scheduled to be delivered starting in 2009, a time
when we believe offshore drilling and production efforts will be
expanding on a worldwide basis. Our ocean fleet has also grown
through the commencement of service in 2007 of three additional
vessels MT Alejandrina, MT Amadeo and Princess Marisol. We have
secured through FFA's, as previously announced, the earnings
level of our three existing OBO vessels for 2008 at
substantially higher levels than those obtained by these vessels
in 2007. We expect to continue to grow, particularly in the
product carrier sector, capitalizing on our knowledge and
relationships in the areas in which we operate."

                   Financial Results Overview

Total revenues for full year and fourth quarter 2007 were
US$221.7 million and US$57.8 million, respectively, as compared
with US$173.4 million and US$45.7 million, respectively, in the
same periods of 2006.

Ultrapetrol's Chief Financial Officer Len Hoskinson said: "For
the full year 2007, we included in our results US$11.7 million
of non-cash losses resulting from the mark-to-market of our FFA
positions that have or will mature between Jan. 1, 2008 and
March 31, 2008. To give our investors some guidance as to what
to expect from our FFA positions in the first quarter 2008
results, we can say that after giving effect to (i) the buyback
of some of our first quarter 2008 positions (as reported in our
Annual Report in Form 20-F filed with the SEC), (ii) the
settlement of our January and February 2008 positions and (iii)
the result of our March 2008 FFA positions valued at March
12, 2008 market close, we anticipate the net result of the FFAs
in our first quarter 2008 financials will be a gain of
approximately US$6.0 million."

Bahamas-based shipping company Ultrapetrol (Nasdaq: ULTR) -
http://www.ultrapetrol.net/-- is an industrial transportation
company serving the marine transportation needs of its clients
in the markets on which it focuses.  It serves the shipping
markets for grain, forest products, minerals, crude oil,
petroleum and refined petroleum products, as well as the
offshore oil platform supply market and the leisure passenger
cruise market, with its extensive and diverse fleet of vessels.
These include river barges and pushboats, platform supply
vessels, tankers, oil-bulk-ore vessels and passenger ships.

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 4, 2008, Standard & Poor's Ratings Services has revised the
outlook on Ultrapetrol (Bahamas) Ltd. to positive from stable.  
The 'B' long-term corporate credit rating was affirmed.



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

FOSTER WHEELER: Unit Bags Contract for Repsol YPF Coker Complex
---------------------------------------------------------------
Foster Wheeler Ltd.'s Madrid-based subsidiary Foster Wheeler
Iberia, S.A.U., part of the company's Global Engineering and
Construction Group, has been awarded a contract by REPSOL YPF
for the detailed engineering, procurement services and
construction management of a new delayed coker complex at its
refinery at Cartagena, in southeast Spain.  The coking complex
consists of a 53,000 barrels per stream day (bpsd) delayed coker
unit, which will use Foster Wheeler’s leading SYDEC(SM)
technology, a gas concentration unit and a 90,000 bpsd vacuum
distillation unit.

The value of this contract, which was not disclosed, will be
included in Foster Wheeler’s first-quarter 2008 bookings.  In
2007, Foster Wheeler Iberia was awarded a separate contract for
the design and supply of the coker fired heaters which are an
integral part of the coker unit.  The value of the heater award
was not disclosed and was included in Foster Wheeler’s fourth-
quarter 2007 bookings.

This award follows the successful completion of the process
design package for the delayed coker unit by Foster Wheeler’s
coking center of excellence in Houston, and the front-end
engineering design by Foster Wheeler Iberia.  The basic design
of the vacuum distillation unit has already been completed by
Foster Wheeler Iberia.

"We are very pleased that REPSOL YPF has selected our delayed
coking technology and our project execution expertise for this
important project,” commented Jesús Cadenas, chief executive
officer of Foster Wheeler Iberia S.A.U.  “This award follows the
similar recent award to us of the coker complex for Petronor’s
Somorrostro Refinery in Spain.  The Petronor refinery is
majority owned by REPSOL YPF.”

Foster Wheeler's SYDEC(SM) process is a thermal conversion
process used by refiners worldwide to upgrade heavy residue feed
and process it into high-value transport fuels. The SYDEC(SM)
process achieves maximum clean liquid yields and minimum fuel
coke yields.  Foster Wheeler is a market leader in delayed
coking and has supplied its delayed coking process technology
worldwide for over 80 new cokers and has worked on more than 70
delayed coker revamps.

                     About Foster Wheeler Ltd.

Foster Wheeler Ltd. (Nasdaq: FWLT) -- http://www.fwc.com/--
offers a broad range of engineering, procurement, construction,
manufacturing, project development and management, research and
plant operation services.  Foster Wheeler serves the refining,
upstream oil and gas, LNG and gas-to-liquids, petrochemical,
chemicals, power, pharmaceuticals, biotechnology and healthcare
industries.  The corporation is based in Hamilton, Bermuda, and
its operational headquarters are in Clinton, New Jersey.

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 5, 2008, Standard & Poor's Ratings Services revised its
outlook on Foster Wheeler Ltd. to positive from stable.  At the
same time, S&P affirmed its 'BB' corporate credit rating on the
company.  The company reported total debt of approximately
US$150 million at Sept. 30, 2007.


PETROPLUS FINANCE: S&P Publishes Recovery Analysis In Report
------------------------------------------------------------
On March 14, 2008, Standard & Poor's Ratings Services assigned
its 'BB-' senior secured rating to the US$500 million
convertible bonds, US$600 million 6.75% and US$600 million 7.0%
notes issued by Petroplus Finance Ltd. (Bermuda), the financing
subsidiary of Switzerland-based oil refiner Petroplus Holdings
AG (Petroplus; BB/Stable/--), one notch below the corporate
credit rating of the group.  At the same time, a recovery rating
of '5' was assigned to this debt, indicating S&P's expectation
of modest (10%-30%) recovery for the note- and convertible bond
holders in the event of a payment default, taking into account
that security is limited to parent and subsidiary guarantees and
a pledge over the issuer's shares.

The issue and recovery ratings on the secured high yield notes
and convertible bonds take into account valuations volatility,
reflecting the cyclical nature of the business, the potential
for cross-jurisdictional insolvency issues, and the high level
of committed asset secured debt facilities designed to fund the
refineries' large working capital requirements.

                       Recovery Analysis

Petroplus Holding AG and subsidiaries credit profile:

Petroplus and its subsidiaries have these committed debt
facilities:

   -- US$1,200 million revolving credit facility (RCF) due 2009;

   -- US$500 million receivables factoring facility (RF) due
      2010;

   -- US$1,200 million fixed rate secured high yield notes due
      2014 and 2017; and

   -- US$500 million secured convertible bonds due 2013.

                        Security package

The US$1.2 billion high yield notes and US$500 million
convertible bonds are secured obligations of Petroplus Finance
and are guaranteed by the parent company Petroplus Holdings AG,
and by intermediary holding companies of the group, holding main
operating assets.  In addition, the notes are secured by the
issuer share pledge.  This security package is weak, given that
the notes are not directly guaranteed by the refineries and do
not have any asset security.

                  Documentation and covenants

Senior secured documentation provides a standard set of
nonfinancial covenants, including limitations on restricted
payments, sale of assets and subsidiary stock, and a negative
pledge.  The only financial covenant restricts the incurrence of
additional indebtedness to the consolidated coverage ratio
(EBITDA over interest expense), which must remain at a level of
at least 2.0.

                         Insolvency regimes

Headquartered in Switzerland, Petroplus Holdings AG operates
mainly in the United Kingdom, Germany, Belgium, and Switzerland.  
Although there is a degree of flexibility in the interpretation
of 'center-of-main-interest', in S&P's view, all these regimes
are creditor friendly.

                    Simulated default scenario

To calculate recoveries, S&P has simulated a default scenario.  
An enterprise valuation approach has been used because the
ratinga agency believes the group would be most likely to
default as a result of cyclical stress and stretched liquidity
due to acquisitions, and lenders would achieve greater value
through reorganization than through a liquidation of assets.

S&P's simulated default scenario assumes a potential combination
of these factors:

   * Cyclical contraction of demand for refining products by
     2012 as a result of a global economic slowdown, leading to
     severe refining margin reductions in the competitive
     northwest European markets.  In addition, assumed margin
     pressure would be exacerbated by a material amount of
     additional global refining capacity, with mostly new
     conversion units in Europe, coming onstream in 2010-2012.

   * Failure to realize earning potential from the acquisitions,
     including weaker synergies than expected.

   * Rising borrowing costs in the form of increasing market
     interest rates, negative working capital movement due to
     suppliers requesting cash on delivery rather than accepting
     letters of credit for crude oil purchases, and the possible
     need to pay waiver fees.

   * Full drawings on the US$1.2 billion RCF and a US$500
     million RF, with the borrowing base amount not expected to
     change significantly over time.  The 40% of the RCF
     available for letters of credit S&P has assumed to have
     crystallized as a further senior ranking claim.

Under S&P's default scenario, a payment default is unlikely to
occur before 2012.  The rating agency's analysis is based on the
assumption that the revolving credit facility and the
receivables facility, together totaling about US$1.8 billion,
are refinanced at respective maturity dates at their original
terms.  S&P also assumed that the convertible notes are not
converted.

                             Valuation

S&P has valued the business at a blended multiple of about 5.0,
using a combination of a discounted cash flow and market
multiple approach.  At the hypothetical point of default, S&P
assumed that the RCF and the receivables factoring facility
would be fully drawn, with EBITDA expected to have declined to
slightly over US$480 million, including Petit Couronne and
Reichstett Vendenheim refineries.

S&P's estimate of the stressed enterprise value at default is
about US$2.4 billion.  After deducting priority liabilities
comprising the costs of enforcement and senior secured bank
debt, the coverage for the high-yield notes and convertible
bonds is expected to be in the 10%-30% range.
    
Headquartered in Bermuda, Petroplus Finance Ltd. is the
financing subsidiary of Switzerland-based oil refiner, Petroplus
Holdings AG, -- http://www.petroplusholdings.com/-- the largest  
independent refiner and wholesaler of petroleum products in
Europe.


PETROPLUS FINANCE: S&P Rates US$500MM Sr. Convertible Notes BB-
---------------------------------------------------------------
Standard & Poor's Ratings Services has assigned its 'BB-' senior
secured rating to the US$500 million convertible bonds issued by
Petroplus Finance Ltd. (Bermuda), the financing subsidiary of
Petroplus Holdings AG (Petroplus; BB/Stable/--), one notch lower
than the corporate credit rating on the group.  In addition, a
recovery rating of '5' has been assigned, indicating S&P's
expectation of modest (10%-30%) recovery for bondholders in the
event of a payment default, taking into account that security is
limited to parent and subsidiary guarantees and a pledge over
the issuer's shares.
     
At the same time, a recovery rating of '5' was assigned to the
US$600 million 6.75% and US$600 million 7% notes issued by
Petroplus Finance Ltd. (Bermuda), guaranteed by its parent
Petroplus and ranking pari passu with the convertible bond.  The
issue-level ratings on the notes remain at 'BB-'.
     
The issue and recovery ratings on the secured high-yield notes
and convertible bonds take into account valuations volatility,
reflecting the cyclical nature of the business, the potential
for cross-jurisdictional insolvency issues, and the high level
of committed asset secured debt facilities designed to fund the
refineries' large working capital requirements.
     
Proceeds from the placement will be used to fund a portion of
the purchase price of the acquisition of the Petit Couronne and
Reichstett Vendenheim refineries and for general corporate
purposes.
    
Headquartered in Bermuda, Petroplus Finance Ltd. is the
financing subsidiary of Switzerland-based oil refiner, Petroplus
Holdings AG, -- http://www.petroplusholdings.com/-- the largest  
independent refiner and wholesaler of petroleum products in
Europe.


SCOTTISH RE: NYSE Suspends Common and Preferred Stock
-----------------------------------------------------
Scottish Re Group Limited has received notification from NYSE
Regulation Inc. that its common stock and 7.25% non-cumulative
perpetual preferred stock will be suspended prior to the market
opening.  NYSE Regulation also stated that an application to the
U.S. Securities and Exchange Commission to delist the company is
pending completion of applicable procedures.

Scottish Re expects its common stock and non-cumulative
perpetual preferred stock to be quoted on the Pink Sheets
electronic quotation service beginning March 14 under the ticker
symbols SKRRF and SKRUF respectively.

Scottish Re Group Ltd. -- http://www.scottishre.com/-- is a
global life reinsurance specialist.  Scottish Re has operating
businesses in Bermuda, Grand Cayman, Guernsey, Ireland, the
United Kingdom, United States, and Singapore.  Its flagship
operating subsidiaries include Scottish Annuity & Life Insurance
Company (Cayman) Ltd. and Scottish Re (US), Inc.  Scottish Re
Capital Markets, Inc., a member of Scottish Re Group Ltd., is a
registered broker dealer that specializes in securitization of
life insurance assets and liabilities.  On Sept. 30, 2007,
Scottish Re reported total assets of US$13.4 billion and
shareholder's equity of US$869 million.

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
March 14, 2008, Moody's Investors Service downgraded the
preferred stock debt rating of Scottish Re Group Limited to Caa3
from B2, and the insurance financial strength ratings of the
company's core insurance subsidiaries, Scottish Annuity & Life
Insurance Company Ltd. and Scottish Re, Inc., were lowered to
Ba3 from Baa3.  The ratings were left on review for possible
further downgrade, continuing a review that had been initiated
on Feb. 15.

At the same time, Moody's Investors Service downgraded the
preferred stock debt rating of Scottish Re Group Limited
(Scottish Re; NYSE: SCT) to Caa3 from B2, and the insurance
financial strength (IFS) ratings of the company's core insurance
subsidiaries, Scottish Annuity & Life Insurance Company (Cayman)
Ltd. and Scottish Re (U.S.), Inc., were lowered to Ba3 from
Baa3.



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

BANCO BRADESCO: Goldman Downgrades Shares to Neutral from Buy
-------------------------------------------------------------
Goldman Sachs has downgraded Banco Bradesco shares to "neutral"
from "buy".

Goldman Sachs increased its target price for Banco Bradesco
shares to BRL63.00 from BRL61.00.

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

                             *     *     *

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


BANCO DAYCOVAL: Goldman Keeps Neutral Rating on Firm's Shares
-------------------------------------------------------------
Goldman Sachs has kept its "neutral" rating on Banco Daycoval
shares, Business News Americas reports.

Goldman Sachs increased the target price for Banco Daycoval
shares to BRL15.30 per share from BRL15.00, Business News
Americas states.

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

                         *     *     *

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


BANCO DO BRASIL: Unit Names Marco Antonio da Silva as Director
--------------------------------------------------------------
Banco do Brasil's pension unit Brailprev has appointed Marco
Antonio da Silva Barros as its new commercial director, Business
News Americas reports, citing a company statement.

Brasilprev is Brazil's third largest private pension provider in
terms of new contributions with an 11.6% market share in 2007,
the report adds.

According to the report, Banco do Brazil holds 49.99% of
Brasilprev.

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

                           *     *     *

On Feb. 29, 2008, Moody's Investors Rating Service assigned a
Ba2 foreign currency deposit rating to Banco do Brasil.


BANCO DO BRASIL: Goldman Sachs Upgrades Shares to Buy from Sell
---------------------------------------------------------------
Goldman Sachs has upgraded its recommendation on Banco do Brasil
shares to "buy" from "sell".

According to Goldman Sachs, now is a good time to purchase Banco
do Brasil shares before they start to rise in price as the
Brazilian banking sector continues to grow.

Goldman Sachs lowered the target price for Banco do Brasil
shares to BRL32.00 from BRL33.00, Business News Americas
relates.

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

                           *     *     *

On Feb. 29, 2008, Moody's Investors Rating Service assigned a
Ba2 foreign currency deposit rating to Banco do Brasil.


BANCO ITAU: Goldman Sachs Downgrades Shares to Sell from Neutral
----------------------------------------------------------------
Goldman Sachs has downgraded its recommendation on Banco Itau
Holding Financeira SA shares to "sell" from "neutral."

Business News Americas relates that Banco Itau shares "are
approaching their price limit" after the bank disclosed good
financial results in the fourth quarter 2007 and repurchased
over 10.5 million preferred shares in January and February this
year.

Goldman Sachs increased the target price for Banco Itau shares
to BRL48.60 from BRL47.30, BNamericas states.

Banco Itau Holding Financeira SA -- http://www.itau.com.br/--
is a private bank in Brazil.  The company has four principal
operations: banking -- including retail banking through its
wholly owned subsidiary, Banco Itau SA(Itau), corporate banking
through its wholly owned subsidiary, Banco Itau BBA SA (Itau
BBA) and consumer credit to non-account hold customers through
Itaucred -- credit cards, asset management and insurance,
private retirement plans and capitalization plans, a type of
savings plan.  Itau Holding provides a variety of credit and
non-credit products and services directed towards individuals,
small and middle market companies and large corporations.  The
bank has offices in Miami, Luxemburg, Chile and Uruguay.

                         *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 12, 2007, Fitch changed the outlook of Banco Itau Holding
Financiera S.A.'s 'BB+' foreign currency IDR rating to positive
from stable.


BANCO NACIONAL: Inks Cooperation Pact With 2 Social Devt Groups
---------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social and the
Ministry of Social Development and Combat Against Hunger signed,
March 12, in Brasilia, a technical cooperation agreement which
formalizes the partnership between the two institutions.

The document was signed at a ceremony in the auditorium of the
General Military Quarters, with the presence of the President of
the Republic, Luiz Inacio Lula da Silva, the Minister of Social
Development and Combat Against Hunger, Patrus Ananias, and the
president of BNDES, Luciano Coutinho.  The event was part of
the events commemorating the fourth year of existence of the
Ministry of Social Development.

With the agreement, the Ministry and BNDES officially establish
the commitment to implement social development strategies that
support initiatives for inclusion and generation of work and
income opportunities.

The agreement confirms the partnership, already ongoing, between
the Bank and the Ministry, in activities that benefit the least
favored sectors of the society.  The goal is that these
activities be intensified as of the signature.

One of the activities developed between the two institutions was
the supporting line to recycled material collector cooperatives,
launched in October 2007.  This line was created with basis on a
joint proposal by the Ministry of Labor and Employment, Ministry
of the Cities and Ministry of Social Development and Combat
Against Hunger.

BNDES support to the collectors cooperatives is inserted within
the scope of the Program of Solid Wastes of the federal
government’s Pluri-annual Program (PPA), making the collectors a
target for the public policy of the Brazilian State.

In the first stage of support to collectors of recycled material
cooperatives, in 2007, BNDES approved 34 projects, for the total
amount of BRL 22.9 million and involving eight Brazilian states
(BA, GO, MG, PR, SC, SE and SP), besides the Federal District.  
In January 2008 the bank carried out a second selection.  42 new
projects were received.

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

                            *     *     *

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


CIA. ENERGETICA: Net Profit Increases 1% to BRL1.74 Bln. in 2007
----------------------------------------------------------------
Companhia Energetica de Minas Gerais's net profit increased 1%
to BRL1.74 billion in 2007, from BRL1.72 billion in 2006.

Business News Americas relates that Companhia Energetica's gross
revenues rose 17.6% to BRL15.8 billion in 2007, compared to
BRL13.4 billion in 2006.  Its net revenue increased 21% to
BRL10.2 billion and Ebitda grew 26% to BRL4.07 billion.

Companhia Energetica told BNamericas that its energy sales rose
16.0% to 57.9 terra watt-hours in 2007, compared to 2006.  

BNamericas notes that Companhia Energetica's power sales to
final consumers increased to 11.6 terra watt-hours in the fourth
quarter 2007, from 10.8 terra watt-hours in the same period in
2006.

Companhia Energetica said, "The increase was due to the economic
growth in Minas Gerais state as well as market opportunities
that allowed the company to sell power to Argentina and Uruguay
in 2007."

According to BNamericas, Companhia Energetica will invest some
BRL1.5 billion in 2008, about 68.6% greater than 2007.  
Investments planned for power generation and distribution will
be BRL334 million and BRL1.18 billion in 2008 respectively.

The report says that Companhia Energetica's net profit decreased
to BRL266 million in the fourth quarter 2007, from
BRL606 million in the fourth quarter 2006.  The firm's net
revenues increased to BRL2.63 billion from BRL2.17 billion.  Its
Ebitda declined to BRL1.07 billion from BRL1.12 billion.

"The main reasons for the reported net income of BRL266 million
were higher financial expenses, the absence of tax benefits from
interest on capital, and higher employee participation/pension
fund expenses, which totaled BRL455 million versus BRL210
million last year," Deutsche Bank market analyst Marcus Sequeira  
commented to BNamericas.

Companhia Energetica de Minas Gerais aka Cemig --
http://www.cemig.com.br/-- is one of the largest and most
important electric energy utilities in Brazil due to its
strategic location, its technical expertise and its market.
Cemig's concession area extends throughout nearly 96.7% of the
State of Minas Gerais, Brazil.  Cemig owns and operates 52 power
plants, of which six are in partnership with private
enterprises, relying on a predominantly hydroelectric energy
matrix.  Electric energy is produced to supply more than 17
million people living in the state's 774 municipalities.  In
addition to those 52 plants, another three are currently under
construction.

Cemig is also active in several other states, through ventures
for the generation or the commercialization of energy in these
Brazilian states: in Santa Catarina (generation), Rio de Janeiro
(commercialization and generation), Espirito Santo (generation)
and Rio Grande do Sul (commercialization).

                          *     *     *

As reported on March 8, 2007, Moody's Investors Service assigned
corporate family ratings of Ba2 on its global scale and Aa3.br
on its Brazilian national scale to Companhia Energetica de Minas
Gerais aka CEMIG.  The rating action triggered the upgrade of
CEMIG's outstanding debentures due in 2009 and 2011, and of the
BRL250 million 2014 senior unsecured guaranteed debentures of
its wholly owned subsidiary, Cemig Distribuicao S.A. to Ba2 from
B1 on the global scale and to Aa3.br from Baa2.br on the
Brazilian national scale, concluding the review process
initiated on Aug. 8, 2006.


COMMSCOPE INC: Earns US$37.6 Million in 2007 Fourth Quarter
-----------------------------------------------------------
CommScope Inc. reported net income of US$37.6 millon and sales
of US$462.6 million for the fourth quarter ended Dec. 31, 2007.

The reported net income includes after-tax charges of
approximately US$3.1 million for interest on new term loans,
write-off of deferred financing fees and acquisition-related
expenses related to the acquisition of Andrew Corporation.  
Excluding these special items, adjusted fourth quarter 2007
earnings were
US$40.6 million.

For the fourth quarter 2006, CommScope reported net income of
US$27.2 million and sales of US$393.7 million.  The reported net
income includes after-tax charges of US$1.1 million related to
restructuring costs.  Excluding this special item, adjusted
fourth quarter 2006 earnings were US$28.3 million.

For 2007, CommScope sales rose 18.9% to US$1.93 billion and net
income rose 57.4% to US$204.8 million.  This compares to sales
of US$1.63 billion and net income of US$130.1 million for 2006.

"Despite an uncertain economic environment, we are pleased to
have delivered another record quarter and year while closing the
acquisition of Andrew Corporation," said CommScope chairman and
chief executive officer, Frank Drendel.  "We believe that the
ongoing, fundamental global demand for bandwidth will continue
to drive the need for communications infrastructure-in both
wired and wireless networks.

"Both CommScope and Andrew claim a proud past and we believe
that, together as one company, we have a promising future.  We
intend to execute on our previously announced cost reduction
plans while we build upon our industry leading portfolio of
products, broad geographic base and market diversity to create
strong cash flow from operations in 2008.  We have an
experienced management team and solid competitive position.  We
remain confident in the long-term outlook for sales growth and
profitability."

                          Sales Overview

Sales for the fourth quarter 2007 increased 17.5% year over
year, primarily driven by increased volume in all three
segments, with particular strength in the Carrier segment.  

Carrier segment sales increased 46.5% year over year to
US$91.4 million.  Sales rose significantly in all major Carrier
product areas.  CommScope experienced particularly strong
international wireless sales of its ExtremeFlex(R) smooth wall
aluminum cables for mobile cellular towers in the quarter.  
Integrated Cabinet Solutions (ICS) revenue increased as large
domestic wireline carriers continue to deploy electronics deeper
in their networks to offer higher bandwidth broadband and video
services.  Fourth quarter ICS sales reflect a less favorable
product mix than previous quarters.

                         Operating Income

Operating income for the fourth quarter 2007 increased
approximately 52.0% year over year to US$55.1 million, or 11.9%
of  sales.  In the year-ago quarter, operating income was
US$36.3 million, or 9.25.  Excluding restructuring costs in the
year ago quarter, operating income would have been US$38.1
million, or 9.7% of sales.

                      Full Year 2007 Results

CommScope reported sales of US$1.93 billion for 2007, and net
income of US$204.8 million.  The company's 2007 results included
after-tax charges of approximately US$3.8 million related to
interest on the new term loans associated with the Andrew
acquisition, write-off of deferred financing fees, restructuring
costs and acquisition costs.  Excluding these special items,
2007 adjusted earnings would have been US$208.6 million.

CommScope reported sales of US$1.62 billion for 2006, and net
income of US$130.1 million.  The company's 2006 results included
an after-tax charge of US$8.1 million related to restructuring
costs and an after-tax benefit of US$18.6 million related to a
recovery on a note receivable from OFS BrightWave LLC.  
Excluding these special items, 2006 adjusted earnings would have
been US$119.6 million.

         Andrew Acquisition and December Quarter Results

On Dec. 27, CommScope completed its acquisition of Andrew
Corporation for a total purchase price of approximately
US$2.6 billion.  In its December quarter, prior to the
acquisition by CommScope, Andrew's unaudited results included
revenues of US$546.2 million and an operating loss of US$24.7
million.  Andrew's operating loss reflected merger costs of
US$34.0 million, asset impairment of US$12.1 million,
restructuring of US$4.8 million, intangible amortization of
US$1.6 million and a gain on the sale of assets of US$900,000.

CommScope's 2007 statements of operations and cash flows do not
include any operating results for Andrew, which were immaterial
for the four-day period between closing and December 31.

"We are excited about the acquisition and the significant task
of integrating CommScope and Andrew is well underway," said
executive vice president and chief financial officer Jearld
Leonhardt.  "We face some headwinds with the recent volatility
in raw material costs.  Our calendar year 2008 guidance assumes
the ability to recover higher costs, a stable business
environment and includes the previously announced US$50 to US$60
million in cost reduction synergies.  While we face some near
term challenges, we believe that CommScope has a great
foundation for success and that the Andrew team makes us even
stronger.  We look forward to another successful year."

                          Balance Sheet

At Dec. 31, 2007, the company's consolidated balance sheet
showed US$5.11 billion in total assets, US$3.83 billion in total
liabilities, and US$1.28 billion in total stockholders' equity.

Full-text copies of the company's consolidated financial
statements for the year ended Dec. 31, 2007, are available for
free at http://researcharchives.com/t/s?2920

                       About CommScope Inc.

Based in Hickory, North Carolina, CommScope Inc. (NYSE: CTV) --
http://www.commscope.com/-- is a provider of infrastructure  
solutions for communication networks.  CommScope is also a
manufacturer of coaxial cable for broadband cable television
networks and a provider of environmentally secure cabinets for
DSL and FTTN applications.  CommScope has facilities in Brazil,
Australia, China and Ireland.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Oct. 19, 2007, Standard & Poor's Ratings Services affirmed its
ratings on CommScope Inc. and Andrew Corp. and removed them from
CreditWatch, where they were placed on June 27, 2007, with
negative implications.  S&P also affirmed the 'BB-' corporate
credit and 'B' subordinated debt ratings for both companies.  
The outlook is stable.


COSAN SA: Incurs US$59.7 Million Loss in Third Quarter FY2008
-------------------------------------------------------------
Paulo Diniz, the Chief Financial Officer of Cosan S.A. Industria
e Comercio's parent firm Cosan Limited, said in a Web cast that
the company had a US$59.7 million net loss in the third quarter
of fiscal year 2008, compared to a net profit of US$16.7 million
in the third quarter of fiscal year 2007, Business News Americas
reports.

Mr. Diniz commented to BNamericas, "The net loss in our third
quarter was expected, as the situation in the sugar and ethanol
markets did not change much from the previous quarters with
depressed prices.  But we saw some signs of recovery in sugar
prices at the end of third quarter 2008."

According to BNamericas, Cosan's EBITDA in the third quarter
2008 declined to US$11.8 million, compared to US$76.9 million in
the third quarter 2007.  Cosan's net operating revenue decreased
to US$377 million, from US$463 million.

BNamericas notes that Cosan's sugar sales decreased 32% to
624,400 tons in the third quarter 2008, compared to the same
quarter last year, while ethanol sales increased 18% to 465
milliliter.

Cosan Limited is a global ethanol and sugar company with
integrated operations in Brazil.  Headquartered in Sao Paulo,
Brazil, Cosan S.A. Industria e Comercio is Cosan Limited's
principal operating subsidiary.  The company operates in three
segments: sugar, ethanol, and other products and services.

                            *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 25, 2008, Standard & Poor's Ratings Services affirmed its
global scale 'BB' local and foreign currency corporate credit
rating on Brazil-based sugar-cane mill Cosan S.A. Industria e
Comercio.  At the same time, S&P affirmed the 'BB' ratings on
the company's US$450 million perpetual bonds and US$400 million
senior unsecured notes due 2017.  S&P said that outlook is
stable.


DELPHI CORP: S&P Still Expects to Designate 'B' Corporate Rating
----------------------------------------------------------------
Standard & Poor's Ratings Services still expects to assign a 'B'
corporate credit rating to Delphi Corp. if the company emerges
from bankruptcy in early April.  This rating expectation is
consistent with S&P's commentary on Jan. 9, 2008.
      
"Recent changes to Delphi's proposed exit financing do not
affect our view of Delphi's highly leveraged financial profile,"
said Standard & Poor's credit analyst Gregg Lemos Stein.  "We
still expect the outlook to be negative."
     
However, S&P has revised its expected issue-level ratings
because changes to the structure of the proposed financings have
affected relative recovery prospects among the various term
loans.  S&P's expected ratings are:

  -- The US$1.7 billion "first out" first-lien term loan B-1 is
     expected to be rated 'BB-' (two notches higher than the
     expected corporate credit rating on Delphi), with a '1'
     recovery rating, indicating the expectation of very high
     (90%-100%) recovery in the event of payment default.

  -- The US$2 billion "second out" first-lien term loan B-2 is
     expected to be rated 'B' (equal to the corporate credit
     rating), with a '4' recovery rating, indicating the
     expectation of average (30%-50%) recovery in the event of
     payment default.

  -- The US$825 million second-lien term loan is expected to be
     rated 'B-' (one notch lower than the corporate credit
     rating), with a '5' recovery rating, indicating the
     expectation of modest (10%-30%) recovery in the event of
     payment default.
     
Delphi's emergence could occur in early April, although
significant potential obstacles remain, including the currently
difficult credit market conditions and other factors.  These
expected ratings are based on preliminary terms and conditions
and assume successful placement of the loans as represented to
us.  In addition, these expected ratings are subject to
substantial consummation of Delphi's confirmed plan of
reorganization, and to S&P's receipt and satisfactory review of
final documentation.

                       About Delphi Corp.

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

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

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


DIOMED HOLDINGS: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Lead Debtor: Diomed Holdings, Inc.
             One Dundee Park
             Andover, MA 01810
             Tel: (978) 824-1811

Bankruptcy Case No.: 08-40750

Debtor-affiliate filing separate Chapter 11 petitions:

        Entity                                     Case No.
        ------                                     --------
        Diomed, Inc.                               08-40749

Type of Business: Founded in 1991 and is headquartered in
                  Andover, Massachusetts, the Debtors engage in
                  the development and commercialization of
                  minimally invasive medical procedures that
                  employ its laser technologies and associated
                  disposable products.  They offer endovenous
                  laser treatment (EVLT), a minimally invasive
                  laser procedure for the treatment of varicose
                  veins caused by greater saphenous vein reflux.  
                  They also develop and market lasers and
                  disposable products for photodynamic therapy
                  cancer procedures; and products for other
                  clinical applications, including dental and
                  general surgical procedures.  In addition,
                  they provide customers with physician training
                  and practice development support.  They serve
                  hospitals, private physician practices, and
                  clinics, as well as focus on specialists in
                  vascular surgery, interventional radiology,
                  general surgery, phlebology, interventional
                  cardiology, gynecology, and dermatology.  They
                  sell their products through a direct sales
                  force, and a network of distributors in the
                  EU, Latin America and Mexico, the UK, the US,
                  Japan, Australia, South Korea, the Peoples'
                  Republic of China, and Canada.  See
                  http://www.diomedinc.com

Chapter 11 Petition Date: March 14, 2008

Court: District of Massachusetts (Worcester)

Judge: Joel B. Rosenthal

Debtors' Counsel: Douglas R. Gooding, Esq.
                     (dgooding@choate.com)
                  Choate, Hall & Stewart
                  Two International Place
                  Boston, MA 02110
                  Tel: (617) 248-5000
                  http://www.choate.com/

                            Estimated Assets    Estimated Debts
                            ----------------    ---------------
Diomed Holdings, Inc.       Less than           US$1 million to
                            US$10,000           US$10 million

Diomed, Inc.                US$10 million to    US$10 million to
                            US$50 million       US$50 million

A. Diomed Holdings, Inc. does not have any creditors that are
not
   insiders.

B. Diomed, Inc's 20 Largest Unsecured Creditors:

   Entity                      Claim Amount
   ------                      ------------
Wolf, Greenfield & Sacks, PC   US$464,645
Attn: Accounting
600 Atlantic Avenue
Boston, MA 02210

Endolaser Associates           US$392,684
Luis Navarro, MD
327 East 65th Street
New York, NY 10021

Luminetx Corp.                 US$287,609
1256 Union Avenue, 3rd Floor
Memphis, TN 38104

Endovenous Laser Associates    US$239,279

Professional Sterile Concepts, US$196,874
Inc.

BDO Siedman, LLP               US$122,058

Medical Device Resource Corp.  US$62,180

Galt Medical Corp.             US$54,500

Lord & Benoit, LLC             US$50,250

Pioneer Optics Co.             US$45,383

Duke University Medical Center US$38,125

ACOM Healthcare                US$31,616

Dan Stempel                    US$30,647

SIR                            US$25,000

Coblentz, Patch, Duffy &       US$22,192
Bass, LLP

Bryn Mawr Communications, LLC  US$22,000

MEDLEADS                       US$20,930

Garfield Group Interactive,    US$18,040
Inc.

Oscar Bottini                  US$16,500

Intermountain Vein Center      US$14,000


DIOMED HOLDINGS: Files for Chap. 11; To Sell Assets to Biolitec
---------------------------------------------------------------
Diomed Holdings Inc. and its subsidiary, Diomed Inc., filed a
voluntary petition under Chapter 11 of the U.S. Bankruptcy
Code in the U.S. Bankruptcy Court for the District of
Massachusetts, Western Division.  

The petition contemplates that Diomed will sell certain of its
operating assets to Biolitec AG, thereby enabling Biolitec to  
operate Diomed's business in the United States.
   
"The decision to pursue the sale of the company's assets and
operations through the bankruptcy process was an extremely
difficult but appropriate decision for our board of directors to
make," James A. Wylie, Jr., Diomed's chief executive officer,
commented.  "In spite of our intensive efforts to seek a buyer
for the company outside of bankruptcy and to work with our
secured lenders to avoid seeking bankruptcy protection, the
impact of infringement of the company's products in the
marketplace and delays in the judicial process proved impossible
to overcome."

"We believe that, given the ongoing financial and legal
challenges facing Diomed, bankruptcy is the best means available
to protect the company's assets and allow the company's
operations to be sold through an orderly process," Mr. Wylie
stated.

With court approval, Diomed will continue operating in the
ordinary course of business as a debtor-in-possession while it
pursues the sale of specified assets to Biolitec and the sale of
its other assets to third parties.  Diomed expects to complete
the asset sale to Biolitec within approximately 60 to 90 days
and to sell its remaining assets in due course, under the
court's direction.  

These other assets include judgments in Diomed's favor of
approximately US$14.7 million arising from Diomed's patent
infringement litigation in 2007 against defendants
AngioDynamics, Inc. and Vascular Solutions Inc.

This litigation is currently on appeal, under bond, with a
hearing on the appeal scheduled for April 10, 2008, at the
appellate court.

Diomed and Biolitec have entered into a non-binding letter of
intent for the sale of specified assets for a purchase price of
between US$6 and US$7 million.  The letter of intent
contemplates that to fund its operations during bankruptcy,
Diomed will use its cash and receipts and will obtain debtor-in-
possession financing from its senior secured creditor, Hercules
Technology Growth Capital Inc.

If Hercules and Diomed are unable to reach agreement on the
terms of such financing, Biolitec has agreed in principle under
the letter of intent to provide necessary financing of up to
US$2 million during the transition period.  The debtor-in-
possession financing will be subject to court approval.
    
The proceeds of the sale of Diomed's assets will be distributed
to Diomed's creditors and equity holders as determined by the
bankruptcy court.  With court approval, Diomed expects to
complete the asset sale to Biolitec within approximately 60 to
90 days and to sell its remaining assets in due course, under
the court's direction.
    
In a related development, Diomed's subsidiary, Diomed Limited,
has determined to file for Administration locally under the
laws of the United Kingdom, contemporaneously with Diomed's
bankruptcy filing in the United States.
   
"We believe that Biolitec's acquisition of Diomed's operating
assets and U.S. sales and marketing organization provides our
loyal physician partners the best opportunity for an improved
level of service, flow of new and innovative technologies, and
continuity of supply of lasers and disposable products,"
concluded Mr. Wylie. "Finally, I would be remiss if I did not
thank each and every employee of the Company for their loyalty,
dedication and commitment during the last several months.  They
stood the course and performed above all expectations during
this very difficult time."

                         About Biolitec AG

Headquarted in Jena, Germany, Biolitec AG is a manufacturer of
medical lasers, optical fibers and other products. Its shares
are listed on the Prime Standard of the Frankfurt Stock
Exchange. Biolitec employs approximately 60 personnel at its
U.S. operations based in East Longmeadow, Massachusetts.
   
                    About Diomed Holdings Inc.

Headquartered in Andover, Massachussetts, Diomed Holdings Inc.
(AMEX: DIO) -- http://www.evlt.com/-- develops and  
commercializes minimal and micro-invasive medical procedures
that use its proprietary laser technologies and disposable
products.  Diomed's EVLT(R) laser vein ablation procedure is
used in varicose vein treatments.  Diomed also provides
photodynamic therapy for use in cancer treatments, and dental
and general surgical applications.  The company has an affiliate
in Brazil.


GERDAU: Court Denies Momentum's Injunction to Halt Macsteel Buy
---------------------------------------------------------------
A court in Texas has denied Momentum Partners' request for a
temporary injunction to stop Gerdau SA from acquiring Quanex
Corp.'s Macsteel.

Business News Americas relates that because of Momentum
Partners' denied request, Gerdau is now one step closer to
acquiring Macsteel, a long specialty steel producer in North
America.

Quanex will spin off its non-steel operations as independent
firm Quanex Building Products before the acquisition of
Macsteel.  Gerdau will then acquire all of the outstanding
shares of Quanex for US$39.20 per share, BNamericas states.

                     About Quanex Corp.

Quanex Corp., formerly Michigan Seamless Tube Company, is
engaged in the production of engineered carbon and alloy steel
bars, heat treated bars, aluminum flat-rolled products, flexible
insulating glass spacer systems, extruded profiles, and
precision-formed metal and wood products.  The two markets
served by the Company include vehicular products and building
products.  The segments served by the Company include Vehicular
Products, Engineered Building Products and Aluminum Sheet
Building Products. Quanex has 27 manufacturing facilities in 12
states in the United States.

                        About Gerdau

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

                            *     *     *

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


GOL LINHAS: Inks Interline Agreement With UAE & Turkish Airlines
----------------------------------------------------------------
GOL Linhas Aereas Inteligentes S.A., the parent company of
Brazilian airlines GOL Transportes Aereos S.A. and VRG Linhas
Aereas S.A. reported interline agreements between VRG Linhas and
the United Arab Emirate's Etihad Airways and Turkey's Turkish
Airlines.  Effective in October, VRG Linhas passengers traveling
on domestic and international flights can purchase tickets to
all destinations served by Etihad and Turkish.

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

In addition to this new partnership, VRG Linhas maintains
interline agreements with Brazil's GOL, France's Air France,
Germany's Hahn Air, Greece's Aegean, Holand's KLM, Hungary's
Malev, Israel's El Al, Italy's Air One, Japan Airlines, Mexico's
Mexicana, Air Moldova, Poland's LOT Polish Airlines, TAP
Portugal, South Korea's Korean Air, Spain's Iberia and Air
Comet, Qatar Airways, the Czech Republic's CSA Czech Airlines,
Ukraine International Airlines and the United States' Delta Air
Lines.

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

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

                         *     *     *

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


MERCANTIL DO BRASIL: Eyes 20% Growth in Loans This Year
-------------------------------------------------------
Banco Mercantil do Brasil's Executive Director Andre Brasil told
Business News Americas that the bank expects to increase its
loan book by 20% this year.

Mr. Brasil commented to BNamericas, "In January and February we
saw a high demand for credit, which is unusual for the first two
months of the year.  We're going to wait a bit but if it
continues like this, maybe we'll revise our projections for the
year."

According to BNamericas, Mr. Brasil said that Mercantil do
Brasil initially sees a 40% increase in retail lending up this
year.

BNamericas notes that Mercantil do Brasil increased lending by
33.9% to BRL3.72 billion in 2007, compared to 2006.  The bank's
retail loans rose 59%, vehicle financing grew 87%, and payroll
loans increased 63%.

Mr. Brasil commented to BNamericas, "We're not going to make any
changes this year.  We're going to keep focusing on loans to
individuals."

Banco Mercantil do Brasil is headquartered in Belo Horizonte,
Brazil and had BRL5.6 billion (US$2.6 billion) in total assets
and BRL567 million (US$269 million) in shareholders' equity as
of December 2006.

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
Nov. 2, 2007, Standard & Poor's Ratings Services assigned its
'B' long-term senior unsecured debt rating to Banco Mercantil Do
Brasil S.A.'s US$100 million senior unsecured MTNs with final
maturity in November 2010.



UNIAO DE BANCOS: Goldman Keeps Sell Recommendation on Shares
------------------------------------------------------------
Goldman Sachs has kept its "sell" recommendation on Uniao de
Bancos Brasileiros SA shares, Business News Americas reports.

Goldman Sachs increased the target price for Uniao de Bancos
shares to BRL25.40 from BRL24.80, BNamericas states.

Headquartered in Sao Paulo, Brazil, Uniao de Bancos Brasileiros
SA -- http://www.unibanco.com/-- is a full-service financial
institution providing a range of financial products and services
to a diversified individual and corporate customer base
throughout Brazil.  The company's businesses comprise segments:
Retail, Wholesale, Insurance and Pension Plans and Wealth
Management.  Uniao de Bancos and its associated companies
FinInvest, LuizaCred, PontoCred and Tecban (Banco 24 Horas)
offer a network composed of 17,000 points of service.  It also
counts on 7,580 automated teller machines and all 30 Hours'
products and services, including the telephone service and the
Internet banking.  The company's international network consists
of branches in Nassau and the Cayman Islands; representatives
offices in New York; banking subsidiaries in Luxembourg, the
Cayman Islands and Paraguay; and a brokerage firm in New York --
Unibanco Securities Inc.

                          *     *     *

To date, Standard & Poor's Ratings Services rated Unibanco-Uniao
de Bancos Brasileiros SA's long-term foreign issuer credit
rating and local issuer credit rating at 'BB+'.


USINAS SIDERURGICAS: Will Increase Products' Price by 12%
---------------------------------------------------------
Usinas Siderurgicas de Minas Gerais SA aka Usiminas will raise
the price for its products by at least 12% in the first half of
this year, financial daily Gazeta Mercantil reports.

According to Gazeta Mercantil, Usiminas Siderurgicas already
increased the value of its products by up to 12% this year on
the domestic market, effective March 24.  The earlier price
raise was based on forecasts of a 30% increase in iron ore
prices and a 50% hike in coal prices.

Business News Americas relates that Usiminas' Domestic Sales
Director Idalino Coelho Ferreira said in a seminar in Mias
Gerais, "As a result of problems in production of mines in
Australia, coal is due to see an increase of at least 130%."

Headquartered in Minas Gerais, Brazil, Usinas Siderurgicas de
Minas Gerais SA is among the world's 20 largest steel
manufacturing complexes, with a production capacity of
approximately 10 million tons of steel.  Usiminas System
companies produces galvanized and non-coated flat steel products
for the automotive, small and large diameter pipe, civil
construction, hydro-electronic, rerolling, agriculture, and road
machinery industries.  Brazil consumes 80% of its products and
the company's largest export markets are the US and Latin
America.  The company also sells in China and Japan.

                        *     *     *

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

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


* BRAZIL: S&P Issues Report on ABS & Loss/Deliquency Ratios
-----------------------------------------------------------
In the second half of 2007, consumer confidence and local banks'
expansion into offering loans that are repaid through automatic
payroll deductions fired up originations in the Brazilian
personal loan market.  However, the issuance of asset-backed
securities (ABS) backed by personal loans actually decreased
because liquidity was available elsewhere, namely the equity and
unsecured loan markets.  As of December 2007, Standard & Poor's
Ratings Services had monitored Brazilian reais BRL856 million in
14 Brazilian credit receivables funds (Fundo de Investimento em
Direitos Creditorios, or FIDCs) backed by this asset type.

These ABS transactions performed well, but delinquencies and
loss rates have shown some deterioration.  S&P is expecting
these rates to increase in the next few months due to loosened
lending standards.  Even if losses increase, however, each
transaction's available credit enhancement should still be
enough to protect it from those losses under appropriate stress
scenarios for each rating category.

S&P's Brazilian personal loan index helps investors and personal
loan originators compare their portfolios' performance with that
of the market.  The rating agency gathers monthly information
from administrators, custodians, and originators of Brazilian
FIDCs and follow several surveillance indicators, such as
delinquency and loss rates, monthly and cumulative, and other
qualitative data, to evaluate whether the credit enhancement
available for these transactions is adequate for their rating
category.  S&P monitors these indicators monthly with data
aggregated from all outstanding rated transactions.

                        Index Highlights

S&P's Brazilian personal loan ABS index showed these in second-
half 2007:

   -- The delinquencies and loss ratios for rated transactions
      showed some deterioration, and S&P's data shows that these
      indicators may deteriorate further in the coming months.

   -- The credit enhancement for all rated transactions remained
      sufficient for the ratings assigned.  However, further
      deterioration in loss ratios could impair certain
      transactions over the next few quarters.

   -- The overall personal loan industry's delinquency rate
      improved.  However, increased competition in the market,
      which could loosen underwriting policies, may weaken the
      industry's overall credit quality in the long run.

   -- Personal loan origination reached record levels, coming in
      at BRL61 billion.  Nonetheless, new ABS issuance volume
      was tepid, primarily because originators, mostly midsize
      banks, were able to access other funding sources, such as
      equity and unsecured debt.

                     ABS Originations Surged

During the second half of 2007, personal loan ABS origination
levels were 6.8% higher than those same levels in the first half
of 2007 and 32.7% higher than the second half of 2006.  In
addition, Brazilian banks generally benefited from high
liquidity levels, which provided them with the necessary funding
resources to expand their credit portfolios, particularly into
the attractive payroll-deductible business.

The performance of domestic transactions backed by payroll-
deductible loans--the main personal loan type targeted for
securitization in Brazil--usually isn't as susceptible as other
consumer loans to economic problems.  This is because of these
loans' payroll-deductibility features and the relative
employment stability and low job turnover that civil servants
enjoy as opposed to workers in the private sector.  In addition,
public entities are generally less susceptible to economic
downturns than most private companies.  However, any weakness in
Brazil's economy could cut into employment rates and incomes at
all levels, eventually hurting payroll-deductible-loan
performance.

According to Brazil's Central Bank, the balance of outstanding
personal loans increased by 10% in the six months ended
December 2007, while the balance of payroll-deductible loans
increased by 13%.  These banks' personal loan ABS businesses
remained profitable during second-half 2007 and, as interest
rates continue to drop and loan terms lengthen, S&P anticipates
another strong year of growth for both originations and ABS
portfolios in 2008.  The local large and midsize banks'
continuing focus on consumer loan origination will support this
strong growth. Importantly, the major personal loan originators
in Brazil depend largely on liquidity available from the
domestic capital markets and local deposits.  Their funding
capacity, therefore, has so far only been marginally affected by
the global economic slowdown.

The fierce competition among financial institutions in second-
half 2007 led to a surge in personal loan originations as well
as somewhat looser credit standards for borrowers.  As a result,
S&P is expecting delinquency and loss ratios to worsen over the
next few quarters, although there's been no effect yet.

Regulators recently made changes to the loan origination process
for retirees and pensioners from Brazil's Social Security,
Instituto Nacional do Seguro Social.  The changes included a
reduction in the deductible margin to 20% of monthly wages, from
30%, and the lengthening of the maximum loan term to 60 months
from 36 months.  While a lower margin tends to improve an
asset's credit quality by diminishing each borrower's monthly
debt service, the offer of longer loan terms may permit higher
leverage by each borrower and increase loans' exposure to longer
term scenarios that are more difficult to forecast.

According to Brazil's Central Bank data, the personal loan
industry's consolidated 90-plus-day delinquency rate, maintained
its downward trend to 7.6% in December 2007, compared with 8.2%
in June 2007 and 8.7% in December 2006.  During the fourth
quarter of 2007, delinquencies were at their lowest levels since
October 2000.  This long-term improvement is likely due to the
increasing contribution of payroll-deductible loans in the total
amount outstanding, as well as Brazil's positive economic
environment over the past few years.

                     But ABS Issuance Slowed

While personal loan origination grew considerably in the second
half of 2007, personal loan ABS issuance slowed down.  This
partly reflects the high liquidity levels that were available to
lenders.  If Brazil's economy remains strong, S&P expects
structured finance transactions backed by personal loans to pick
up again in 2008, supported by asset portfolios' continuing
expansion and due to a local equity market that doesn't provide
an alternative funding source that is as relevant as the funding
source that was available in 2007.

        High Prepayments Could Stymie Credit Enhancement

Interest rates in Brazil have gradually declined over the past
few years to 11.25% currently from 18.00% at year-end 2005, and
many financial institutions began offering longer-term loans to
remain competitive in the payroll-deductible lending industry.  
These two factors have stimulated borrowers to prepay or
renegotiate their loans to obtain better credit conditions and
larger loans.  In addition to refinancing, net prepayment rates
also include repurchases of problematic loans and client
movements to competing banks.  Prepayments could hurt ABS
structures by reducing the excess spread available for credit
enhancement in each transaction.  When S&P analyzes and performs
surveillance on personal loan ABS transactions, it reviews the
credit enhancement that is available to cover scenarios of
higher prepayments, according to each rating category.  S&P will
continue to monitor prepayment rates in current and future
transactions and adjust its assumptions accordingly.

               Increasing Delinquency And Loss Rates
                  Could Put Credit Quality At Risk

S&P's key personal loan securitization surveillance indicators
are delinquency and loss rates, cumulative and divided by the
monthly flow of maturities, and credit enhancement levels.  The
rating agency's performance analysis of these indicators
incorporated historical data from 14 FIDCs.  S&P analyzed the
underlying assets' or personal loans performance based on four
indicators:

   -- Delinquency rates (90-day overdue installments) divided by
      the expected monthly flows of installments repayments;

   -- Loss rates (180-day overdue installments) divided by the
      expected monthly flows of installments repayments;

   -- Cumulative delinquency rates calculated as a percentage of
      the total stock of receivables that are 90 days overdue
      divided by the consolidated total issued balance; and

   -- Cumulative loss rates calculated as a percentage of the
      total stock of receivables that are 180 days overdue
      divided by the consolidated total issued balance.

S&P's credit metrics for monitoring FIDCs backed by personal
loans have shown some deterioration over the past few months.  
While the consolidated loss ratios of rated transactions showed
just a mild deterioration over the six months ended
December 2007, the consolidated delinquency ratio of rated
transactions increased to 6.9% in September 2007, from 5.1% in
March 2007.  S&P believes that loss ratios will increase in the
next few months, considering the history of delinquent loans'
low recoveries.

The gradual increase of delinquency and loss rates of rated
transactions over the past two years, due in part to the
personal loan ABS portfolios' seasoning, continues to indicate
that some underlying pools could experience credit quality
deterioration.  S&P believes that the strong competition among
financial institutions operating in the Brazilian personal loan
ABS industry has contributed to the overall industry's
deterioration of delinquency and loss ratios because it has
resulted in relatively riskier loan contracts.  These loan
contracts include longer terms, lower spreads, and
diversification into public entities with weaker credit
profiles, and operational capabilities.  In view of evolving
economic and market conditions, S&P will continue to closely
monitor the performance of Brazilian personal loan ABS
transactions and adjust its ratings accordingly.

The performance of FIDCs focused on payroll-deductible loans to
retirees and pensioners from Brazil's Social Security National
Institution has consistently outperformed the consolidated
delinquency and loss indexes.  In addition, since their
establishment, FIDC Parana Banco I, Pine Credito Consignado
FIDC, and FIDC Rural Consignados usually outperformed the
average index.  However, in some instances, they've
underperformed the consolidated indices.  FIDCs backed by
personal loans originated by Banco Rural and Banco Matone have
reported below-average asset performance.

S&P recognizes that some of the outstanding personal loan ABS
transactions benefit from their originators' support through
repurchases of delinquent loans and the maintenance of minimum
subordination levels.  However, the rating agency's ratings
don't incorporate this support.  S&P focuses solely on the
expected performance of the collateralized asset pools.  
Therefore, the agency excluded its data for FIDCs backed by
Banco Matone personal loans from charts 10 and 11 because
they're not comparable with the other transactions due to the
distorting effects of loans repurchases in these transactions.  
FIDCs' performance indicators are adjusted to eliminate the
effects of these repurchases.

As of December 2007, the outstanding balance of FIDCs backed by
personal loans rated by S&P was approximately BRL850 million,
15% lower than the outstanding balance in June 2007.  This
decrease is mostly due to the redemption of Banco Schahin's and
Banco Luso's FIDCs, the early redemption of Matone FIDC IV
(Emprestimos Consignados), the debt service of other FIDCs, and
the relatively lower number of new transactions during the
second half of 2007.  The proportion of transactions rated
'brAAAf' has declined to 46% in December 2007 from 56% in
June 2007, while the proportion of transactions rated 'brAAf'
has increased to 47% from 39% in the same period.

Despite the deterioration observed in overall delinquency and
loss ratios, the Brazilian ABS personal loan transactions rated
by S&P's continue to present adequate credit enhancement and
asset performance that support their current ratings.  However,
any further deterioration in loss ratios could damage certain
transactions over the next few quarters.



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

ARIANE HEALTH: Will Hold Final Shareholders Meeting on March 20
---------------------------------------------------------------
Ariane Health Limited, LDC, will hold its final shareholders'
meeting on March 20, 2008, at 10:00 a.m. at the company's
registered office.

These matters will be taken up during the meeting:

             1) accounting of the winding-up process; and

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

Ariane Health's shareholders agreed on Feb. 5, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

                John Cullinane and Derrie Boggess
                c/o Walkers SPV Limited
                Walker House, 87 Mary Street
                George Town, Grand Cayman KY1-9002
                Cayman Islands


BALLANTYNE RE: Moody's Lowers Ratings on US$300 Million Notes
-------------------------------------------------------------
Moody's Investors Service downgraded these notes issued by
Ballantyne Re plc and Orkney Re II plc:

Ballantyne Re

  -- US$250 million of 30-year Class A-1 Floating Rate Notes

     -- Current Rating: Ba1, on review for downgrade
     -- Prior Rating: Baa3, on review for downgrade

  -- US$10 million of 30-year Class B-1 Subordinated Fixed Rate
     Notes

     -- Current Rating: B2, on review for downgrade
     -- Prior Rating: B1, on review for downgrade

  -- US$40 million of 30-year Class B-2 Subordinated Floating
     Rate Notes

     -- Current Rating: B2, on review for downgrade
     -- Prior Rating: B1, on review for downgrade

Orkney Re II

  -- US$42.5 million of 30-year Series A-2 Floating Rate Notes

     -- Current Rating: Ba1, on review for downgrade
     -- Prior Rating: Aa2, on review for downgrade

  -- US$30.0 million of 30-year Series B Floating Rate Notes

     -- Current Rating: Ba3, on review for downgrade
     -- Prior Rating: Baa2, on review for downgrade

Ballantyne Re and Orkney Re II are independent special purpose
reinsurers each sponsored by Scottish Annuity & Life Insurance
Company (Cayman) Ltd. (Ba3 insurance financial strength, on
review for downgrade) for the purpose of financing the excess
reserve requirement associated with distinct blocks of business
ceded by Scottish Re (U.S.), Inc. (Ba3 IFS rating, on review for
downgrade), a subsidiary of Scottish Re Group Limited (Scottish
Re; NYSE: SCT; Caa3 preferred stock, on review for downgrade).  
The reinsurance agreements between Scottish Re (U.S.) and the
two special purpose reinsurers covers defined blocks of level
premium term life policies subject to the statutory reserve
requirements of Regulation XXX.  Moody's rating analysis views
the actuarial assumptions in Regulation XXX as producing
economically redundant statutory reserves for level premium term
products.

According to Moody's, the downgrades are based on both the
projected losses in Ballantyne Re and Orkney Re II's investment
portfolios --particularly investments in subprime and Alt-A
residential mortgage-backed securities -- that support the
repayment of the notes, as well as the impact of unrealized
investment losses on the probability of the notes defaulting.  
The losses on the RMBS securities include both realized credit
impairments as well as substantial unrealized mark-to-market
losses, although none of the securities in the Ballantyne Re or
Orkney Re II portfolios have experienced a payment default to
date.  The performance of the underlying level premium term
business supporting both of the reserve funding structures is
consistent with Moody's original expectations, and is not
directly affected by movements in the investment portfolio.

According to Scott Robinson, Vice President & Senior Credit
Officer, "the quarterly requirement for Ballantyne Re and Orkney
Re II to true up the market value of the assets held in the
reserve credit trust to the level of the statutory reserves,
combined with the investment losses on the RMBS securities, have
significantly eroded unencumbered surplus in the two vehicles."  
Robinson added that "absent a recovery of unrealized losses or
changes to the structures in their current form, it is likely
that transactional restrictions would prevent the payment of
interest on the notes -- essentially based on a measure of
unencumbered capital to required capital --in the near-term."  
Moody's emphasized that despite the possibility of an
interruption of interest payments, primarily driven by a decline
in the market value of investments in the special purpose
reinsurers, the ultimate loss on the notes (which are not
insured by financial guarantors) will be driven both by the
performance of the underlying term life business and the
performance of the invested assets. We expect that Ballantyne Re
will experience higher relative investment-related losses than
Orkney Re II, given the different composition of the investment
portfolios within the two structures, which helps to explain the
lower rating on the subordinated notes of Ballantyne Re.

Moody's added that for Orkney Re II, the credit profile has also
been negatively impacted by the triggering of contractual
provisions increasing fees paid to financial guarantors.  
According to Robinson, "the fees that are paid by Orkney Re II
to insure certain classes of their notes have increased as a
result of downgrades of Scottish Re (U.S.) since the deals were
originally rated. This places greater pressure on the deal,
especially if it is assumed that the increased fees are paid
over a long period of time."  In the Ballantyne Re transaction,
the increased payments to the financial guarantors are
subordinate to both Class A and B notes.  As a result of this
feature, increased fees paid to the guarantors have no impact on
the ratings of Ballantyne Re.

Most of the notes issued by these two special purpose reinsurers
to fund the collateral requirements for the statutory reserves
are insured by financial guarantors, while some of the notes
were issued without financial guaranty insurance.  The ratings
of the uninsured notes (and the underlying ratings of the
insured notes) consider the results of stochastic modeling of
insurance and investment cash flows from the level premium term
business supporting the transaction, including the modeled
expected losses to the note holders.

The review for downgrade will focus on the potential for
additional investment losses in the RMBS portfolio and the
nature and likely effectiveness of any actions that may be
pursued by Ballantyne Re, Orkney Re II, and/or Scottish Re to
mitigate the impact of losses on the ability of the special
purpose reinsurer to pay interest on the notes.

These rated notes are not affected by the current rating action:

Ballantyne Re:

    -- US$500 million of Class A-2, Series A Floating Rate
       Notes, insured by Ambac Assurance UK Ltd.

       * Current Rating: Aaa, negative outlook

    -- US$500 million of Class A-2, Series B Floating Rate
       Notes, insured by Assured Guaranty (UK) Ltd.

       * Current Rating: Aaa, stable outlook

    -- US$400 million of Class A-3 Floating Rate Notes, insured
       by Ambac Assurance UK Ltd.

       * Current Rating: Aaa, negative outlook

Orkney Re II:

    -- US$382.5 million of Class A-1 Floating Rate Notes,
       insured by Assured Guaranty (UK) Ltd.

       * Current Rating: Aaa, stable outlook

The rating action concludes a review for downgrade on Orkney Re
II's uninsured debt that was initiated on September 7, 2006.  On
Feb. 1, 2008, Moody's downgraded the uninsured notes of
Ballantyne Re.

Ballantyne Re plc and Orkney Re II plc are public limited
companies established in Ireland as special purpose vehicles.  
Scottish Re is a Cayman Islands company with principal executive
offices located in Bermuda.  On Sept. 30, 2007, Scottish Re
reported total assets of US$13.4 billion and shareholder's
equity of US$869 million.


DRI INTERNATIONAL: Sets Final Shareholders Meeting for March 20
---------------------------------------------------------------
DRI International Limited will hold its final shareholders'
meeting on March 20, 2008, at 10:00 a.m. at No. 1 Seaton Place,
St. Helier, Jersey.

These matters will be taken up during the meeting:

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

DRI International's shareholders agreed on Jan. 18, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

                Kevin Mercury
                Corporate Filing Services Ltd.
                P. O. Box 613, Grand Cayman KY1-1107
                Cayman Islands
                Telephone: (00 44 1534 605606)
                Fax: (00 44 1534 605605)


PARMALAT SPA: Main Trial Over Collapse Commenced Last Friday
------------------------------------------------------------
A court in Parma, Italy, commenced last Friday, March 14, 2008,
the main trial against people allegedly involved in the collapse
of Parmalat S.p.A., the Associated Press reports.

According to the report, 24 former executives of Parmalat,
including founder Calisto Tanzi and CFO Fausto Tonna, are facing
charges of fraudulent bankruptcy and criminal association that
carry a maximum 15 years in prison.

Mr. Tanzi and Mr. Tonna, however, failed to show up on the first
day of the trial, although the founder declared he will
"actively participate" once it gets going.  The trial, reports
disclose, could last up to three years.

The court, the AP adds, also opened four related trials,
bringing the total number of defendants to 56, among them are
Italian bankers Cesare Geronzi and Matteo Arpe.

The prosecutors, the AP relates, submitted a list of 247
witnesses, who according to defense lawyer Giampiero Biancolella
will be asked "why they bought the Parmalat bonds, to understand
if they were persuaded by Parmalat's accounts or if someone else
convinced them to buy."

The defense, which has argued in various trials that it was the
financial institutions selling the bonds that were responsible
for the fraud, on the other hand, listed 35,000 small
bondholders, who have the joined the trial as civil
complainants, the AP reveals.

According to Mr. Biancolella, Mr. Tanzi apologized to the
bondholders, who lost their investment in the crash, saying "the
only thing he can do, as the one who was running Parmalat, is to
create a situation in which situation in which all who are
responsible must answer for their conduct," the paper discloses.

                        About Parmalat

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

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

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

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

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

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


TELEWEB, INC: Will Hold Final Shareholders Meeting on March 20
--------------------------------------------------------------
Teleweb, Inc., will hold its final shareholders' meeting on
March 20, 2008, at 9:30 a.m. at the company's registered
office.

These matters will be taken up during the meeting:

             1) accounting of the winding-up process; and

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

Teleweb's shareholders agreed on Jan. 31, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidators can be reached at:

                John Cullinane and Derrie Boggess
                c/o Walkers SPV Limited
                Walker House, 87 Mary Street
                George Town, Grand Cayman KY1-9002
                Cayman Islands


YY PROPERTY: Sets Final Shareholders Meeting for March 20
---------------------------------------------------------
YY Property Holdings will hold its final shareholders' meeting
on March 20, 2008, at 9:00 a.m. at the company's registered
office.

These matters will be taken up during the meeting:

             1) accounting of the winding-up process; and

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

YY Property's shareholders agreed on Jan. 29, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidators can be reached at:

                John Cullinane and Derrie Boggess
                c/o Walkers SPV Limited
                Walker House, 87 Mary Street
                George Town, Grand Cayman KY1-9002
                Cayman Islands



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SCIENTIFIC GAMES: Signs Two Six-Year Deals With Nassau Company
--------------------------------------------------------------
Scientific Games Corp. signed two new contracts with Nassau
Regional Off-Track Betting Corporation.  The first replaces the
existing totalisator services agreement for the provision of
wagering systems hardware, software, service, wagering devices
and a new digital Interactive Voice Response (IVR) telephone
wagering system.  The second provides for the implementation of
a new Trackplay(TM) advanced deposit wagering website.  The two
contracts have a term of six years and are expected to generate
annual revenue of approximately US$2 million.

Under the new totalisator services agreement, Scientific Games
will install BetJet(TM) terminals featuring the ClearBet(TM)
user interface at Nassau Regional Off-Track Betting Corp.
branches and will provide a new APT(TM) Player Tracking and
Rewards System. &n