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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

             Wednesday, March 19, 2008, Vol. 9, No. 56

                             Headlines


A R G E N T I N A

ALITALIA SPA: Air France-KLM Offers EUR747 Mln for Italy's Stake
ALITALIA SPA: Board Accepts Air France-KLM's Binding Offer
ALITALIA SPA: Board Approves 2008-2010 Industrial Plan
BUENOS AIRES BUREAU: Trustee to Verify Claims Until May 21
CIAFER SA: Proofs of Claim Verification Deadline Is May 22

GREY ARMOR: Proofs of Claim Verification Deadline Is May 5
JURYS SRL: Court Appoints Luis Moisin as Company Trustee
LANCI IMPRESORES: Trustee to Verify Proofs of Claim Until May 13
METROGAS SA: Posts ARS6,706,000 Net Loss in Qtr. Ended Dec. 31
SERVYCOB SA: Files for Reorganization in Buenos Aires Court

* ARGENTINA: S&P Says Provinces Have Low Financial Flexibility


B A H A M A S

GLOBAL ENVIRONMENTAL: Gets RMB70MM Funding From Chinese Bank
ULTRAPETROL (BAHAMAS): Okays US$50 Mil. Share Repurchase Program


B E R M U D A

ARCH CAPITAL: Forms Joint Venture With Gulf Investment Corp.
ASPEN INSURANCE: Promotes Julian Cusack to COO Role
CAPE OPPORTUNITIES: Proofs of Claim Filing Is Until May 30
SECURITY CAPITAL: Moody's Cuts Provisional Debt Rating to (P)Ba1


B O L I V I A

VISTA GOLD: Posts US$14.2MM Net Loss in Year Ended Dec. 31, 2007


B R A Z I L

AMERICAN AIRLINES: Latin American Revenues Increase to US$4.3B
BANCO NACIONAL: Disburses BRL12.1 Billion in Transpo Financings
BANCO NACIONAL: Okays BRL48.5 Million Loan to Petroquimica Uniao
BANCO NACIONAL: Unit Acquires Ordinary 10.8% Stake in Nutriplant
BRASKEM SA: Debt Servicing Prevents S&P's Investment Rating

DELPHI CORP: Court Approves Denso Corp. Settlement Agreement
DELPHI CORP: Ct. Allows Plan Investors' New EPCA Interpretation
DUERR AG: South Carolina Plant Gets EUR100 Mln Order from BMW
ENERGIAS DO BRASIL: Will Increase Energy Generation Capacity
* BRAZIL: S&P Says Loss Rates in ABS Deals Show Deterioration


C A Y M A N  I S L A N D S

ANTHRACITE BALANCED: Proofs of Claim Filing Deadline Is March 21
ANTHRACITE BALANCED: Final Shareholders' Meeting Is on March 21
ANTHRACITE FEEDER: Proofs of Claim Filing Is Until March 21
ANTHRACITE FEEDER: Sets Final Shareholders' Meeting for March 21
CARBON TRADING FUND: Proofs of Claim Filing Is Until March 21

CARBON TRADING MASTER: Proofs of Claim Filing Ends on March 21
TANZANITE FINANCE: Proofs of Claim Filing Deadline Is March 21
TANZANITE FINANCE: Final Shareholders' Meeting Is on March 21
WATER STREET: Sets Final Shareholders' Meeting for March 21


C H I L E

AES CORP: Posts US$95 Million Net Loss in Year Ended Dec. 31


C O S T A  R I C A

SIRVA INC: Class Action Plaintiffs Want Automatic Stay Lifted
SIRVA INC: Parties Agree to Lift Stay on Preference Action
SIRVA INC: Discloses Info Related to EURO Share Purchase Deal


D O M I N I C A N   R E P U B L I C

AES CORP: Sales in Dominican Republic Boost Firm's Revenue
PRC LLC: Court Fixes May 1 as General Claims Bar Date
PRC LLC: Has Until April 1 to File Disclosure Statement


J A M A I C A

AIR JAMAICA: Int'l Financial Group to Help Airline Find Partner
AIR JAMAICA: Will Increase Daily Flights in April


M E X I C O

ARROW ELECTRONICS: Ct. Rules Return of US$12MM Payment to Bridge
BEARINGPOINT INC: Names David Hunter as Chief Operating Officer
BRISTOW GROUP: Mexican Joint Venture Bags US$160MM in Contracts
CHRYSLER LLC: Mexican Unit Reports 13.6% Increase in Feb. Sales
CONSTELLATION BRANDS: UBS Reaffirms Neutral Rating on Firm

FEDERAL-MOGUL: U.S. Trustee Contests Financial Advisor's Fees
FEDERAL-MOGUL CORP: Earns $1.4 Billion in Fiscal Year 2007
GREAT PANTHER: Board Approves Shareholder Rights Plan
GRUPO POSADAS: Commences Tender Offer for 8-3/4% Senior Notes


P E R U

GRAN TIERRA: Secures Data for Peruvian Blocks 122 & 128


P U E R T O  R I C O

CARIBBEAN RESTAURANTS: S&P Cuts Rtg. to CCC+; Holds Neg. Outlook
DORAL FIN'L: Says Bear Stearns Sale to JPMorgan Has No Impact
MAIDENFORM BRANDS: Earns $34.2 Mil. in Year Ended Dec. 29, 2007
OWENS-ILLINOIS: Board OKs Preferred Stock Redemption on March 31
* PUERTO RICO: S&P Says US Recession Will Affect Revenue Growth


V E N E Z U E L A

INTERNATIONAL PAPER: To Buy Weyerhaeuser's Unit for US$6BB Cash
PETROLEOS DE VENEZUELA: Orinoco Output Exceeds Estimates
PETROLEOS DE VENEZUELA: Gov't to Enforce New Tax on Oil Profits


                          - - - - -


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A R G E N T I N A
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ALITALIA SPA: Air France-KLM Offers EUR747 Mln for Italy's Stake
----------------------------------------------------------------
Alitalia S.p.A. has disclosed the binding offer submitted by
Air France-KLM SA, and approved by its Board of Directors.

               Strategic Rational of the Transaction

The new group will benefit from the comprehensive, competitive
and efficient market coverage that will strengthen its position
as the leading global airline group, offering its customers an
unmatched network.

The network design of the three companies rests upon jointly
defined principles and on three main intercontinental hubs
(Amsterdam, Paris and Rome).  It will be based on natural flows
having regards to the respective size of the hubs.

With the new industrial set-up, Alitalia:

     * will continue to play an autonomous role with Air France
       and KLM;

     * will benefit from the global alliance SkyTeam;

     * will provide a wide range of services in the best interest
       of its customers; and

     * will directly manage certain activities currently carried
       out by Alitalia Servizi.

Alitalia's integration with the Air France-KLM Group will
enable:

     * A product offering in line with Italy's economic and
       industrial features consistent with the country's economic
       strength and of its successful exports;

     * A complete offer of services for Italian corporate
       clients;

     * The possibility of access for every Alitalia client to a
       single fare structure for all the groups' airlines;

     * The access to all the clients to the world's most powerful
       frequent-flyer program characterized by a growing number
       of partners; and

     * The improvement on board and ground services.

In terms of integration, Alitalia will pursue the recovery of
its leading positioning in the Italian market and in the
international traffic flows to/from Italy, developing a strategy
of profitable growth.

With the full support of Air France-KLM, Alitalia is expected to
strengthen its position as the Italian flag carrier benefiting
from synergies in the principle areas of its business model
(Sales and Distribution, Network and Revenue Management, FFP,
Fleet and Procurement).

Alitalia's brand and Italian identity are core and valuable
assets of the Company and will be further developed for the
benefits of the new group.

The new industrial set up envisages the re-internalization by
Alitalia of certain activities included in the areas of ground
handling and maintenance (including expertise and technologies)
currently in Alitalia Servizi's perimeter.  These activities are
considered key in the day to day management of the business
operations and in the direct relationships with the clients.

This restructuring is consistent with the goal to significantly
improve the quality of the service which is the base of
Alitalia's re-launch within the new Air France-KLM group.

              Technical Characteristics of the Offer

The agreement following the acceptance of the Offer cannot be
executed immediately as it is subject to certain effectiveness
conditions, which have to be fulfilled by March 31, 2008.

Such agreement, once executed, will entail, subject to certain
additional conditions, the launch of an exchange public offer on
100% of the Alitalia shares and a public cash tender offer on
100% of the 2010 Alitalia convertible bond.

The formal notification (in accordance to article 102 of T.U.F.)
of the decision to launch the offers is therefore subject to the
fulfillment of the aforementioned additional conditions.

As customary when the control of a company receiving such offers
is in the hands of a single subject, the Ministry of Economy and
Finance has been requested to give its commitment to tender its
shares and convertible bonds to the offers before these are
launched, as it would be not useful to proceed with the such
offers knowing already that they would not be successful.

In line with the T.U.F. provisions and in order to comply with
the principles of transparency and non-discrimination that the
MEF has to adhere to, the preemptive commitment of the MEF shall
become void should a better competing public offer be pursued by
the MEF.

There are other relevant effectiveness conditions:

     * finalization of an agreement with trade unions, for
       Alitalia and Alitalia Servizi's employees, as their full
       cooperation is key to the re-launch of the Company;

     * formal written undertaking from the competent Italian
       governmental authority to maintain the current portfolio
       of Alitalia's air traffic rights, continue to address in
       a transparent and non-discriminatory manner any future
       requests from Alitalia for air traffic rights and provide
       cooperation and assistance in the case of any major
       difficulties with non-European countries; such conditions
       should be deemed satisfied by the agreement underwritten
       with ENAC on March 14, 2008;

     * an agreement signed between Alitalia and Aeroporti di Roma
       S.p.A. on the service standards required for the
       implementation of the Industrial Plan 2008-2010;

     * the finalization of an agreement between Alitalia,
       Fintecna and Alitalia Servizi, for what concerns each's
       own interest, to re-internalize in Alitalia certain sector
       of activities and to renegotiate certain clauses of the
       service agreements.  In order to underline the value of
       the re-internalization proposal, the finalization of an
       Unions agreement relative to Alitalia Servizi employees
       represents an effectiveness condition in the interest of
       both parties; and

     * the identification of an applicable solution to definitely
       remove the risk connected to the SEA claim.

In addition, in the context of the finalisation of the
negotiation with Air France-KLM it emerged the need to ensure
the necessary financial flexibility to face the longer expected
timing for the integration and the subsequent capital increase,
and the delay in the disposal of non core assets planned in the
budget.

Consequently, is a further effectiveness condition is envisaged
relies on the MEF's granting to Alitalia a credit line to be
repaid immediately after the capital increase.

After contacts held with the main shareholder, the MEF itself
has expressed its intention to consider the possibility to
promote the necessary steps to grant such credit line only
in case the Binding Offer from Air France-KLM becomes effective
in its entirety even after a positive assessment expressed by
the MEF itself.

Subject to the satisfactory achievement of the all the
effectiveness conditions set out and subject to filing
conditions set out below, Air France-KLM shall formally notify
(in accordance to article 102 of the T.U.F.) the decision to
launch two separate public offers to all the shareholders and
all the bondholders of Alitalia respectively and shall proceed
to file all the required documentation with Consob for:

     * a voluntary exchange offer on all the Alitalia shares with
       a parity of 1 Air France-KLM share for 160 Alitalia
       shares; and

     * a voluntary cash offer on all the Alitalia convertible
       bonds at the market price of March 14, 2008, equal to a
       unit price of EUR0.3145.

The Air France-KLM decision to launch the Offers will become
executable and hence the Offers will only take place only when
all the filing conditions are fulfilled:

     * there shall be no material breach by Alitalia of its
       obligations under the Agreement that is not remedied
       within four weeks of Air France-KLM's having notified
       Alitalia thereof in writing;

     * there shall have been no material adverse change in
       respect of Alitalia;

     * the Italian government taken as a whole shall not have
       taken any formal decision or made any official public
       statement, which is materially against the transaction;

     * the European Commission shall have issued a positive
       decision on the transaction, even if subject to conditions
       deemed reasonably acceptable for Air France-KLM;

     * any applicable waiting period under the U.S. antitrust law
       shall have expired;

     * all the agreements and effectiveness conditions in the
       Agreement shall have been fulfilled;

     * if, with respect to the SEA claim, the solution to
       definitely remove the risk should come from the enactment
       of an appropriate law decree, such law decree shall
       have been converted into law.

The conditions shall remain in force until clearance to publish
the offer documents is received; in case these conditions will
not be duly executed, the Offers can be withdrawn.

After receiving clearance to publish the offer documents the
filing conditions shall become effectiveness conditions to the
Offers.

The Offer documents, both with respect to the Exchange Offer and
Cash Offer, will include customary effectiveness conditions. In
addition, the Exchange Offer and the Cash Offer will include
respectively a minimum acceptance threshold condition of 49.9%
and 62%.  It is noted that such thresholds can be achieved
through the acceptance to the offers by the MEF.

The Cash Offer is conditional to the successful completion of
the Exchange Offer.

The agreement foresees that, following the completion of the
Offers, Alitalia will approve a EUR1 billion rights issue to be
offered for subscription to all shareholders and convertible
bondholders, at a price to be determined closer to the offer
considering the price for the public exchange offer.

Air France-KLM undertakes to exercise all subscription rights of
the Alitalia shares owned by Air France-KLM or any and all
subscription rights not exercised by the other Alitalia
shareholders.

Should the Offers be successful, and as a consequence, Air
France-KLM becomes the owner of a controlling stake in Alitalia,
a series of transactions will be completed to create a structure
adequate to allow Alitalia, also within the Enlarged Group, to
be considered as an Italian airline company and preserve its
traffic rights on extra European routes.

As part of the Agreement, Air France-KLM committed to grant for
a five years period as from the completion date, certain
assurances with the objective to preserve the long term interest
of the Company.

Such Assurances are granted by Air France-KLM in favor of the
Italian State and/or Alitalia.

The obligation of Air France-KLM to comply with certain
Assurances is subject to the fact that the Italian state
maintain the current air traffic rights portfolio, continue to
address in a transparent and non discriminatory manner any
future request from Alitalia for new air traffic rights, provide
cooperation and assistance in the case of any major difficulties
with non-European Union countries, particularly in cases where
air traffic rights of Alitalia could be jeopardized and/or where
commercial access is hindered (it is being provided however that
such condition shall lapse upon the expiration of the initial
period should the controlling structure, be dissolved at that
time).

Certain Assurances regarding the network will also be suspended
in case of a non-adequate development, by Aeroporti di Roma
S.p.A. and the air traffic control, of the required
infrastructures and facilities in Rome Fiumicino.

A Foundation will be in charge of verifying the compliance with
the Assurances.  The Foundation will be managed by a board
comprising three independent directors:

     * one shall be designated by Air France-KLM;

     * one shall be designated by Alitalia (before being
       controlled by Air France-KLM); and

     * one director jointly by the parties.

The directors will render binding advice to Alitalia in order to
ensure the compliance of the Assurances.

The Assurances, granted by Air France- KLM to the Italian State
considering at all times the best interest of the Alitalia and
the Enlarged Group and its shareholders, include:.

     * Corporate Governance

       -- appointment in the Air France-KLM Board of Directors of
          an additional member of Italian nationality, with
          significant business experience, and who shall fulfill
          the independence criteria, to be proposed to the
          nominating committee, after consultation and upon
          indication of the MEF.  Such board member will be
          appointed for a six-year term.  Following the
          expiration of such term of appointment, the Chairman of
          the Board of Director shall do its reasonable
          efforts to propose to the Board's nominating committee
          a member who shall replace the Italian director and who
          shall be Italian with a significant business
          experience, who shall fulfil the independence criteria;

       -- commitment by Air France to a three years lock up
          period from the date of completion of the transaction
          on the directly/indirectly held shares.

     * On the airline Status

       -- Air France agrees that Alitalia shall remain an airline
          company established in and operating from its home base
          in Italy; and

       -- Air France agrees that Alitalia shall retain its air
          operation certificate and its operating licenses and
          shall continue to fulfill the conditions necessary for
          that purpose.

     * Network and Hubs

       -- the Enlarged Group will operate a multi-hub system
          leveraging on the natural flows based on the
          intercontinental hubs of Amsterdam, Paris and Rome with
          a development fair and consistent with the identified
          growth opportunities.

       -- the parties confirm that the infrastructural potential
          for growth at the respective hubs (Schiphol, Fiumicino
          and Charles de Gaulle airports) are fundamental
          requirements to the success of the Enlarged Group.

       -- Air France-KLM will strive to maintain, in an
          harmoniously and financially sound way, and taking into
          account the economic rationale of overall profitability
          of Alitalia and the Enlarged Group:

           * an adequate coverage of the Italian territory and
             appropriate level of service;

           * a long term development of international and
             intercontinental services to/from Fiumicino hub (in
             the first instance to/from North America and South
             America, Far East, Middle East, North Africa and
             Europe);

           * a product offering in Fiumicino in line with Italy's
             economic and industrial features;

           * the business operations at the airports of Malpensa
             and Linate will be reorganized to foster its long-
             term development in an harmonious and financially
             sound way having due considerations to traffic
             demand, economic conditions of the respective routes
             and the business customers request.

             This having regards to the economic rationale and
             targets of overall profitability and financial
             soundness of Alitalia and the EnlargedGroup.

       -- Air France-KLM will evaluate restarting the services to
          India and China (in particular, as a top priority to
          Shanghai) as soon as those operations can be profitable
          for both Alitalia and the Enlarged Group.

     * Safeguarding National Identity and Brands

       -- Air France-KLM recognizes that the Alitalia brands,
          trademark and logo have an established value and
          heritage and is intending to build on it.

          Air France-KLM also recognizes that the Alitalia brand
          benefits from a significant influence and visibility on
          the Italian market and that the Enlarged Group will
          work towards strengthening it;

       -- as in the case of Air France and KLM, Alitalia will
          keep its own brand, livery and logo and will, alongside
          with the products of the Enlarged Group also develop
          its own customer experience giving the Enlarged Group a
          wide and diversified offer.

          It is in the commercial interest of the Enlarged Group
          to give to the brand of each carrier the appropriate
          standing corresponding to the customers' expectations.

       -- Air France-KLM, is ready to consider amending the
          holding company name in order to include the name
          Alitalia at a second stage once it has acquired 100% of
          the share capital.

                        About Alitalia

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

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

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


ALITALIA SPA: Board Accepts Air France-KLM's Binding Offer
----------------------------------------------------------
Alitalia S.p.A.'s Board of Directors resolved unanimously on
March 15, 2008, in favor of Air France-KLM's proposal and
decided to give the mandate to Chairman Maurizio Prato to sign
the acceptance letter.

The offer is subject to a number of effectiveness conditions to
be fulfilled by March 31, 2008.

The Board has carried out its evaluation of the Binding Offer
also in light of the worsened airline sector and macro economic
scenario, as well as considering the critical situation of the
Company and available alternatives.

The Board believes that such proposal offers the appropriate
solution to preserve the Company's assets and to promote its
rapid and stable restructuring and its development in the long-
term, also in light of the benefits coming from the synergies
deriving from the integration with the global leader of the
airline industry.

Consistently with the resolution taken, the Chairman signed the
acceptance letter of the Agreement.

                        Strategic Premises

The scenario and the competitive environment of the air
transport sector are rapidly moving towards forms of integration
and consolidation involving a very limited number of hub
carriers, which enable the achievement of some important
benefits:

     * Higher critical mass, which allows to benefit from
       relevant economies of scale in terms of costs and
       revenues, and decreases the carrier's vulnerability to the
       high cyclicality and volatility that characterize the
       industry;

     * Access to very significant and stable synergies, which
       cannot be achieved through traditional alliances amongst
       airlines.

In this environment, there is an emerging trend in the industry
to leave only niche positioning to traditional carriers, which
although operating efficiently, have a limited size and operate
on a stand-alone basis.

The airline industry is currently facing a cyclical downturn,
worsened by the steep increase in fuel costs during these last
months and by the general deterioration of the macro economic
scenario.

Alitalia is going through a highly critical situation, causing a
progressive erosion of its liquidity position worsened by the
aforementioned economic and industrial scenario.

The Company has confirmed on a number of occasions, including
when it approved the 2008 Budget, the need of a significant
capital increase and to reduce in a sizeable manner
its losses and the erosion of its equity through strategic
actions marked by strong discontinuity with the past.

The Plan for Survival/Transition, approved by the Company in
September 2007, already included such actions of discontinuity
through the new network design, the suspension of flights
recording significantly negative economic results, and the
subsequent downsizing of the fleet.  Key strategic premise to
that plan was the impossibility to pursue a stand alone
positioning of the Company outside an industrial and financial
integration with a strong carrier able to generate synergies.

Following the approval of the Plan, the Company initiated a
process aimed at identifying a partner who would share the need
to favor the restructuring, the re-launch and the development of
the Company.

On Dec. 6, 2007, Air France-KLM presented a non binding offer
for the potential integration with Alitalia.  On Dec. 21, 2007,
the Board of Directors resolved in favur of Air France-KLM's
proposal considering it appropriate to offer to the Company the
adequate solution to preserve the Company's assets and to
promote its rapid and stable restructuring, giving mandate to
the Chairman to start a period of exclusive negotiations.

The Industrial Plan 2008-2010, prepared during the exclusivity
period -- Jan. 18, 2008, to March 14, 2008, ended the and
assumes the execution of a EUR1billion rights issue.

Such Plan is the platform on which to add the synergies deriving
from the integration of the Company with the Air France-KLM
group.

For Air France-KLM the approval of such plan represents an
essential condition for the the integration of Alitalia in the
French-Dutch Group.

                        About Alitalia

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

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

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


ALITALIA SPA: Board Approves 2008-2010 Industrial Plan
------------------------------------------------------
Alitalia S.p.A.'s Board of Directors has approved a new three-
year industrial plan (2008-2010).  This plan was prepared by
Alitalia starting from the Plan for Survival Transition as a
basis and incorporating the outcomes of the exclusivity
negotiations completed with Air France-KLM SA for the Company's
restructuring and relaunch in the context of the integration
with the Franco-Dutch group.

                            Assumptions

The Industrial Plan 2008-2010, which maintains a close
continuity with the Plan of Survival/Transition approved in
September 2007 and is in line with the 2008 Budget, envisages:

     * an initial restructuring phase -- pursued through a
       shrinking of the fleet, suspend flights with strongly
       negative economic results, an increase in the efficiency
       of the cost structure and a significant recovery in
       productivity; and

     * A re-launch and development phase from 2010, through the
       renewal of the fleet.

The new strategic positioning Alitalia confirms its historical
mission: a carrier which serves Italy, focusing on Italy as
the center of its network, offering better schedules and
connections from all the most important Italian cities to the
rest of the world and vice versa.

The new Alitalia's industrial mission hinges on:

     * choosing Roma Fiumicino as reference hub, pivotal to the
       Italian market and a natural traffic basin, to maximize
       exploitation of Fiumicino's characteristics;

     * focusing on Milan as a key gateway, with point-to-point
       activity from/to international and intercontinental
       destinations;

     * suspending flights with negative economic results and
       increasing connections and frequencies;

     * re-launching Alitalia's brand in Italy and all over the
       world, in line with the new network positioning;

     * focusing product and marketing investments on the most
       important origin/destination markets from and to Italy:
       United States, Canada, Japan, South America and
       Mediterranean basin.

Key Strategic Actions

Hub and Spoke

There will be a single "hub and spoke" network organization,
offering a financially sound portfolio of international and
intercontinental destinations to Italian customers as well as to
customers from foreign countries.  The choice of Rome as
Alitalia's single hub is consistent with the features of point-
to-point traffic to Rome, mainly inbound, which is better and
more efficiently served with a hub and spoke network
organization, on a single airport concentrating strong services
to major medium and short haul destinations.

Milan as Gateway

Milan will be a strong gateway, with services to and from
international cities and selected intercontinental destinations
characterized by consistent traffic flows.

The network strategy for the Milanese airports platform will be
organized to recover Alitalia's market share in Milan through:

     * meeting business travelers needs through morning
       departures and late afternoon return flights to targeted
       domestic and international destinations;

     * additional developments within the SkyTeam alliance;

     * development of low-cost activities of Volare as done by
       Transavia Netherlands from Amsterdam and Rotterdam and
       more recently by Transavia France from Orly; and

Flight Suspensions

The company will Suspend flights with strongly negative economic
results and with no prospects for recovery in the short term
and, in light of the sharp increase of fuel cost, preserve group
profitability by further rationalizing the network compared to
the Plan for Survival/Transition.

It is important to note that the implementation of such network
adjustments will begin from the 2008 summer season and therefore
the network's structure envisaged in the Industrial Plan is
already reflected on the Alitalia's offer as of March 31, 2008.

Such plan does not envisage any additional relevant changes to
the network for 2009 and 2010, maintaining a nearly constant
product offering over the three years.

Therefore it becomes relevant to highlight the key
characteristics of the product on offer during the 2008 summer
season, comparing it with the 2007 summer season:

     * destinations where the Company operated at a loss in Italy
       and in Europe (Zagreb, Sarajevo, etc) and in the rest of
       the world (Dakar, Shanghai, Mumbai and Delhi) have been
       suspended;

     * increase of the number of connections, with a focus on
       Rome, which in terms of weekly frequencies increase from
       1,406 to 1,601;

     * the new Company's network sizing synthetically envisages
       for the domestic market 24 destinations (served by 44
       routes and 1,265 weekly frequencies), for the
       international market 45 destinations (served by 73
       routes and 928 weekly frequencies) and for the
       intercontinental market 14 destinations (served by 17
       routes and 101 weekly frequencies), considering the
       opening from June 1, 2008, of the new destination of Los
       Angeles;

     * Turin, Verona, Cagliari and Brindisi will be connected
       again to Alitalia's intercontinental network;

     * significant improvement of connectivity between Italian
       cities and intercontinental destinations, with transit via
       Fiumicino reducing connection timing;

     * the connectivity also improves for foreign customers who
       want to get to an Italian city, passing through the
       Alitalia hub, thanks to the wide offering of domestic
       connections throughout the day for each destination (for
       example: flights to Genoa increase from 3 to 6, to Catania
       from 3 to 11, to Venice from 3 to 8, etc.).

Until 2010, as a result of the network redesign, the Industrial
Plan 2008-2010 considers a decrease in activity and passengers,
with a strong increase in the load factor (increase of 1.5
percentage points without considering Volare).

In summary, the overall passenger capacity reduction in 2010 as
compared to 2007 in terms of Average Seats Kilometres offered,
excluding Volare, will be around 10% with a 1% reduction in the
domestic network, 19% in the international network and 6% in the
intercontinental one.

The rationalization of the passenger network will lead to an
increased in yield stemming from the targeted cuts on the worse
performing routes and from a renewed revenue management strategy
able to improve the traffic mix (total increase of average
revenues in passenger business in 2010 for around 9%).

Once the results of the new network structure are consolidated
in 2009 and 2010, the Industrial Plan 2008-2010 envisages a
return to activity growth and to development starting from 2011.

The fleet plan foresees as a consequence a decrease in the short
term, with fewer MD80 and regional aircraft, with growth from
2011 with the entrance of new generation aircrafts.

In 2010 the passenger fleet, excluding Volare, will consist of
137 aircrafts, of which 20 are long haul aircrafts, 101
medium/short haul and 16 regional (of which 4 of the new
generation).

Starting from 2011, the Company will start expanding with the
addition of new generation aircrafts and the complete phase out
of the B767 fleet by 2016 and of the MD80 fleet by 2020.

The 2008-2010 Industrial Plan envisages total investments in the
three years of around EUR850 million mainly related to the
renewal of the fleet and to marketing initiatives aimed to the
product re-launch.

Revenue Improvement

Alitalia will Implement specific commercial actions aimed at
improving revenue and distribution cost performance through:

     * strengthening Alitalia's leadership on the Italian
       domestic market with an improved focus on high value
       customers and an easier access to product;

     * increasing direct sales through a more effective web
       proposition to customers;

     * GDS (Global Distribution System) cost reduction;

     * Leveraging direct marketing strategies.

Service Quality Improvement

Alitalia will implement specific actions to improve the quality
of service to the client, both on the ground and in the air,
through:

     * the renewal of the Fiumicino-Linate shuttle brand, with
       dedicated services at the airports and new services on
       board;

     * the improvement of services for higher value customers
       (check-in, transit desk, fast track at airport security,
       etc.);

     * the improvement of VIP airport lounges with a new design
       and improvement of services (catering, magazine, free
       WI-FI, etc.);

     * the launch of a new policy for punctuality recovery,
       decrease cancellations and baggage handling;

     * the Airbus fleet cabin reconfiguration, with new high
       comfort solutions;

     * the long-haul aircraft cabin reconfiguration with the
       introduction of the Lie-Flat seats in the Magnifica class;

     * the aircraft cabin style refurbishment (colors and
       materials) with a continuous focus on cabin maintenance
       and cleaning;

     * the in flight entertainment improvements in line with the
       Air France-KLM standards;

     * the launch of new catering concept for the Business Class
       and the Magnifica class leveraging on Italian style and
       heritage;

     * the overall brand re-launch, also through new image and
       communication guidelines.

Streamline Cost Structure

The company will implement specific actions to streamline cost
structure.

Concerning labor cost the plan identifies an efficient sizing of
labor force with an overall personnel reduction of around
1,600 units in line with the Plan of Survival/Transition in 2010
compared to 2007.  Redundancies will be managed via normal staff
turnover, incentives for voluntary leaves, utilization of social
tools.

Reduction of costs related to services provided by Alitalia
Servizi, thanks to the revision of service tariffs to market
levels.

In short, the increase in the total cost structure efficiency
generates a decrease in the passenger area unit costs which,
without considering the fuel cost evolution, is in the order of
2% despite the activities reduction versus 2007 earlier
described.

Cargo Business

The Cargo business continues to show extremely critical economic
performances due to a series of reasons:

     * excess capacity due to constant increase in gap between
       offer and demand;

     * consequent yield reduction;

     * rising fuel cost;

     * unfavorable exchange rates evolution (Euro/dollar); and

     * MD11 operating features which combines a high level of
       fuel consumption with constraints on transportable load,
       especially on long-haul routes over nine hours.

The Industrial Plan 2008-2010 assumes that the cargo bellies
activity will continue its normal operations, whereas in 2008
and 2009, the activity of the all-cargo fleet will focus on
those routes with higher operating margins, towards the Far East
and North America, to decrease progressively until closure in
2010.

Expected results from the 2008-2010 Business Plan The Industrial
Plan prepared by Alitalia and Air France-KLM does not include
the synergies generated from the integration.  The plan is, in
fact, developed on a stand alone basis and envisages an
important economic turn around, which will enable the Company
to achieve a positive operating result in 2010.

The synergies arising from the integration with the Air France-
KLM Group will allow the Company to improve the Plan operating
result and, in the medium-long term, to achieve EBITDAR and EBIT
margins in line with those of the main European carriers.

In particular, thanks to the industrial agreement with Air
France-KLM, Alitalia will be able to obtain significant economic
benefits which, as already experienced in the past in other
similar integrations, will involve many business areas, like:
revenue management, network, sales, distribution, purchases, IT,
fleet, etc.

The path aimed at achieving these results requires a capital
increase without which the goals set out in the Industrial Plan
2008-2010 would surely not be achievable.

Thus, the capital increase of EUR1 billion, fully guaranteed by
Air France-KLM, is an essential element for the successful
implementation of the new plan.  The resources given by Air
France-KLM will allow Alitalia to re-balance its financial
structure, as well as providing the Company with the necessary
resources to face an important investment plan.

                        About Alitalia

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

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

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


BUENOS AIRES BUREAU: Trustee to Verify Claims Until May 21
----------------------------------------------------------
Alberto Eduardo Scravaglieri, the court-appointed trustee for
Buenos Aires Bureau Relevamientos SA's reorganization
proceeding, will be verifying creditors' proofs of claim until
May 21, 2008.

Mr. Scravaglieri will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 4 in Buenos Aires, with the assistance of Clerk
No. 7, 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 Buenos Aires Bureau 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 Buenos Aires Bureau's
accounting and banking records will be submitted in court.

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

Creditors will vote to ratify the completed settlement plan
during the assembly on Feb. 18, 2009.

The debtor can be reached at:

         Buenos Aires Bureau Relevamientos SA
         Blanco Encalada 5533
         Buenos Aires, Argentina

The trustee can be reached at:

         Alberto Eduardo Scravaglieri
         Avenida Presidente Roque Saenz Pena 651
         Buenos Aires, Argentina


CIAFER SA: Proofs of Claim Verification Deadline Is May 22
----------------------------------------------------------
N. Pszemiarower, the court-appointed trustee for Ciafer SA's
bankruptcy proceeding, will be verifying creditors' proofs of
claim until May 22, 2008.

N. Pszemiarower will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 14 in Buenos Aires, with the assistance of Clerk
No. 27, 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 Ciafer 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 Ciafer's accounting
and banking records will be submitted in court.

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

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

The debtor can be reached at:

           Ciafer SA
           Manuela Pedraza 4701
           Buenos Aires, Argentina

The trustee can be reached at:

           N. Pszemiarower
           Corrientes 1257
           Buenos Aires, Argentina


GREY ARMOR: Proofs of Claim Verification Deadline Is May 5
----------------------------------------------------------
H. Martinez, the court-appointed trustee for Grey Armor SA's
bankruptcy proceeding, will be verifying creditors' proofs of
claim until May 5, 2008.

H. Martinez will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 17 in Buenos Aires, with the assistance of Clerk
No. 33, 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 Grey Armor 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 Grey Armor's
accounting and banking records will be submitted in court.

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

H. Martinez is also in charge of administering Grey Armor's
assets under court supervision and will take part in their
disposal to the extent established by law.

The debtor can be reached at:

           Grey Armor SA
           Carlos Calvo 329
           Buenos Aires, Argentina

The trustee can be reached at:

           H. Martinez
           Avenida Independencia 2251
           Buenos Aires, Argentina


JURYS SRL: Court Appoints Luis Moisin as Company Trustee
--------------------------------------------------------
The National Commercial Court of First Instance in Buenos Aires
has appointed Luis Moisin as trustee for Jurys S.R.L.'s
bankruptcy proceeding.

Mr. Moisin will verify creditors' proofs of claim and present
the validated claims in court as individual reports.  The court
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 Jurys and its creditors.

Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.

Mr. Moisin will also submit a general report containing an audit
of Jurys' accounting and banking records in court.

Mr. Moisin will also be in charge of administering Jurys' assets
under court supervision and will take part in their disposal to
the extent established by law.

The debtor can be reached at:

          Jurys SRL
          Uruguay 695
          Buenos Aires, Argentina

The trustee can be reached at:

          Luis Moisin
          Avenida Corrientes 4560
          Buenos Aires, Argentina


LANCI IMPRESORES: Trustee to Verify Proofs of Claim Until May 13
----------------------------------------------------------------
Estudio Ramil, Macias, Bisignano y Cacace -- the court-appointed
trustee for Lanci Impresores SRL's reorganization proceeding --
will be verifying creditors' proofs of claim until May 13, 2008.

Estudio Ramil 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 Lanci Impresores 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 Lanci Impresores'
accounting and banking records will be submitted in court.

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

Creditors will vote to ratify the completed settlement plan
during the assembly on Feb. 19, 2009.

The debtor can be reached at:

         Lanci Impresores SRL
         Mom 2802
         Buenos Aires, Argentina

The trustee can be reached at:

         Estudio Ramil, Macias, Bisignano y Cacace
         Lavalle 1619
         Buenos Aires, Argentina


METROGAS SA: Posts ARS6,706,000 Net Loss in Qtr. Ended Dec. 31
--------------------------------------------------------------
MetroGas SA submitted to the U.S. Securities and Exchange
Commission its consolidated financial statements for the three-
month period and year ended Dec. 31, 2007.

For the fourth quarter ended Dec. 31, 2007, the company posted a
net loss of ARS6,706,000 on net revenues of ARS210,268,000
compared to a net loss of ARS8,202,000 on net revenues of
ARS194,982,000 for the same period in 2006.

For the full year of 2007, the company earned ARS15,787,000 on
net revenues of ARS955,853,000 compared to net income of
ARS292,553,000 on net revenues of ARS873,893,000 in 2006.

At Dec. 31, the company's balance sheet showed ARS2,006,981,000
of total assets and ARS1,016,685,000 of total liabilities, minor
interests of ARS804,000, resulting in a shareholders' equity of
ARS989,492,000.

Headquartered in Buenos Aires, Argentina, Metrogas SA
-- http://www.metrogas.com.ar/-- distributes gas to Buenos
Aires and southern and eastern greater metropolitan Buenos
Aires.  The Company has a 35-year concession that began in 1992
to provide natural gas in this area.  The concession is
renewable for an additional 10 years.

Metrogas supplies some 2 million customers in Buenos Aires
through 15,840 km of pipelines, representing about 26% of all
gas retailed in Argentina.   Metrogas is 45% owned by a
subsidiary of UK gas production company BG Group and 26% owned
by a unit of Spanish oil company Repsol YPF.

                         *     *     *

As reported in the Troubled Company Reporter-Latin America on
April 2, 2007, Moody's Investors Service upgraded Metrogas S.A.
debt ratings to Caa1 from Caa2 and the national scale rating to
Ba1.ar from B1.ar.  Moody's said the outlook is stable.


SERVYCOB SA: Files for Reorganization in Buenos Aires Court
-----------------------------------------------------------
Servycob SA has requested for reorganization approval after
failing to pay its liabilities since May 3, 2007.

The reorganization petition, once approved by the court, will
allow Servycob 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. 3 in Buenos Aires.  Clerk No. 5 assists the court
in this case.

The debtor can be reached at:

            Servycob SA
            San Martin 50
            Buenos Aires, Argentina


* ARGENTINA: S&P Says Provinces Have Low Financial Flexibility
--------------------------------------------------------------
Standard & Poor's Ratings Services has issued two articles
commenting on the fiscal and financial performances of the
Republic of Argentina's provincial governments and the prospects
for new provincial international issuance.

The first article, "Do You Remember The Argentine Provinces? The
Prospects For Future Provincial International Issuance," focuses
on how the institutional relationship between Argentina's
central government and its provinces changed after the 2001
crisis and how that is shaping the current deterioration in
fiscal balances.

"However, we expect the provincial consolidated deficit to
remain low and have no material implications for Argentina's
sovereign credit story," said S&P's credit analyst Sebastian
Briozzo.  "We also evaluate the
potential for the Argentine provinces to increase their
participation in international capital markets.  Standard &
Poor's expects the Argentine provinces to raise up to US$1
billion in the international capital markets in 2008, as long as
markets stabilize," Mr. Briozzo added.

The second article, entitled "Managing Provincial Risk In
Argentina: A Fiscal Flexibility Index For Argentine Provinces,"
introduces S&P's recently launched fiscal flexibility index
methodology on provinces in Argentina.  According to S&P's
credit analyst Ricardo Cavilliotti, the Argentine provinces show
a low consolidated level of financial flexibility when compared
to other countries worldwide.

"Argentine provinces have low financial flexibility due to a
combination of low own-generated revenue and a rigid expenditure
structure," explained Mr. Cavilliotti.  "However there is
considerable disparity among the Argentine provinces, with some
still achieving high levels of fiscal flexibility." Mr.
Cavilliotti concluded.



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


GLOBAL ENVIRONMENTAL: Gets RMB70MM Funding From Chinese Bank
------------------------------------------------------------
Global Environmental Energy Corp. has received a commitment from
the Agricultural Bank of China to join the financing consortium
funding the expansion of Shaoxing (Biosphere) Company Limited.

Shaoxing (Biosphere) Co. already has a US$600,000,000 funding
commitment from the US Fund Conversion Consultants LLC.  The
initial RMB70 million commitment from the Agricultural Bank of
China, is the first substantial financial endorsement for the
Shaoxing project from a mainland Chinese Bank.

GEECF recently restructured its Chinese businesses to
consolidate its revenue interest, acquiring 97.12% of the
Shaoxing business which will see the deployment of 72 six
megawatt per hour Biosphere Power Stations, with a complete
capital investment of US$1,440,000,000 and an expected EBIDTA of
US$1,061,961,993 per annum.  This revenue is derived from
tipping fees, electricity sales and the sale of Carbon Credits.

Shaoxing has been permitted by the State Environmental
Protection Administration of China to build and operate its
Biosphere Power Stations consuming municipal solid waste and
generating saleable electricity anywhere in China.  Biosphere
Process Systems also consume coal mine wastes as a Clean Coal
Technology generating electricity and tradable Carbon Credits.

Headquartered in Nassau, Bahamas, Global Environmental Energy
Corp. (Deutsche Borse: GLI; OTC Bulletin Board: GEECF) --
http://www.geecf.ru-- is engaged in traditional oil and gas
exploration and production, alternative energy sources,
environmental infrastructure and  electrical micro-power
generation through its subsidiaries, Sahara Petroleum
Exploration Corp. and Biosphere Development Corp.

                           *      *       *

As of May 31, 2007, Global Environmental Energy Corp. reported a
total stockholders' deficit of US$71,549,591 compared to
US$55,609,865 total stockholders' deficit on May 31, 2006.


ULTRAPETROL (BAHAMAS): Okays US$50 Mil. Share Repurchase Program
----------------------------------------------------------------
Ultrapetrol (Bahamas) Limited's Board of Directors has approved
a share repurchase program, effective March 17, 2008, for up to
a total of US$50 million of the Company's common stock through
Sept. 30, 2008.  The expiration date and/or amount of the share
repurchase program will be extended or amended at the discretion
of the board of directors.  Share repurchases will be made from
time to time for cash in open market transactions at prevailing
market prices or in privately negotiated transactions.

Felipe Menendez, Ultrapetrol's President and Chief Executive
Officer, said, "This repurchase authorization reflects our high
level of confidence in the markets in which we operate, in the
future of Ultrapetrol and also demonstrates our continuing
commitment to pursuing opportunities to create shareholder
value."

The timing and amount of purchases under the program will be
determined by management based upon market conditions and other
factors.  Purchases may be made pursuant to a program adopted
under Rule 10b5-1 under the Securities Exchange Act.  The
program does not require the company to purchase any specific
number or amount of shares and may be suspended or reinstated or
amended at any time in the company's discretion and without
notice.  Under appropriate securities laws, officers, directors
and controlling shareholders of the company may currently be
buying shares.

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 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
=============


ARCH CAPITAL: Forms Joint Venture With Gulf Investment Corp.
------------------------------------------------------------
Arch Capital Group Ltd. and Gulf Investment Corporation have
entered into a joint venture agreement to establish Gulf Re, a
new specialist reinsurer to be based in the Dubai International
Financial Centre.

Arch Capital and GIC will subscribe to a total of US$400 million
of capital.  The initial paid up capital of Gulf Re will consist
of US$200 million, with an additional US$200 million to be
funded depending on the business needs of the company.  Gulf Re
will be owned by Arch Capital and GIC equally.

Gulf Re will initially target high-value oil and gas,
industrial, utility and transportation assets primarily in the
six member states of the Gulf Cooperation Council which include
Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE.  The
company will write a broad range of property and casualty lines
of reinsurance, including aviation, energy, commercial
transportation, marine, engineered risks and property, on both a
treaty and facultative basis.

Gulf Re underwriting activities are expected to commence during
the first half of 2008, subject to receipt of the necessary
regulatory approvals from the Dubai Financial Services
Authority.

"The GCC is home to a large and fast growing, state-of-the-art
tangible asset base, built and operated to the highest
standards," said Dinos Iordanou, the Arch Capital Group
President and CEO.  "The joint venture will allow Arch to expand
its platform in a region where there is a strong need for local
reinsurance capacity and specialist expertise for these assets.
Arch has extensive experience in the lines of business that will
be focused on by Gulf Re," he added. "By partnering with GIC, a
successful and highly regarded sponsor in the GCC, Gulf Re will
be well-positioned for opportunities in the marketplace.  Gulf
Re will also benefit from an outstanding management team,"
said Mr. Iordanou.

"Gulf Re will meet the need for a Gulf based reinsurer with
significant financial resources and specialist expertise," said
Hisham Al-Razzuqi, the GIC CEO.  "The company will add depth to
the GCC insurance sector and support the growth of GCC insurers.
Gulf Re will benefit from the technical expertise and support of
Arch Capital, widely recognized for the quality of its
management.  The resources of both joint venture partners will
provide strong support to Gulf Re as it builds its reinsurance
business," he added.  "This is a strategic long term investment
for GIC, in line with our mission to develop financial services
in the GCC," Mr. Al-Razzuqi said.

Gulf Re will be led by Gail Norstrom, who has over 36 years of
insurance industry experience.  Mr. Norstrom was previously a
Managing Director of Aon Risk Services Property Practice Group.
Prior to joining Aon, he served Industrial Risk Insurers in
various senior executive capacities, including President and
CEO.  Gulf Re core management team includes four additional
senior executives with many years of experience in Europe and
the United States with leading European and U.S. insurance
firms.

                             About GIC

GIC is a pre-eminent financial institution established in
November 1983 and equally owned by the six member states of the
GCC.  Its mission is to promote private enterprise and help
develop capital markets in the GCC.  GIC is registered in Kuwait
and regulated by the Central Bank of Kuwait, with the legal
status of a Gulf Shareholding Company.  Its main activities
include investment management, financial advisory and principal
investments.  GIC has substantial investments in power and water
desalination, petrochemicals, steel, telecoms, financial
services and other industries.  GIC had shareholders' funds
of about US$2 billion as at end 2007.

                       About Arch Capital

Headquartered in Bermuda, Arch Capital Group Ltd. (NASDAQ: ACGL)
-- http://www.archcapgroup.bm-- is a public limited liability
company, which provides insurance and reinsurance on a worldwide
basis through operations in Bermuda, the United States, Europe
and Canada.  It provides a range of property and casualty
insurance and reinsurance lines, and focus on writing specialty
lines of insurance and reinsurance.  Arch Capital classifies its
business into two underwriting segments: reinsurance and
insurance.  The company's reinsurance operations are conducted
on a worldwide basis through its reinsurance subsidiaries, Arch
Reinsurance Ltd. and Arch Reinsurance Company.  The company's
insurance operations in Bermuda are conducted through Arch
Insurance (Bermuda), a division of Arch Re Bermuda, which has an
office in Hamilton, Bermuda.

                           *     *     *

In December 2006, A.M. Best assigned these ratings on to Arch
Capital's debts:

    -- "bb+" from "bb" on US$200 million 8% non-cumulative
       Series A preferred shares; and

    -- "bb+" from "bb" on US$125 million 7.875% non-cumulative
       Series B preferred shares.


ASPEN INSURANCE: Promotes Julian Cusack to COO Role
---------------------------------------------------
Aspen Insurance Holdings Limited has promoted Julian Cusack to
the role of Chief Operating Officer of the company.

Mr. Cusack's new role will include responsibility for Aspen's
Actuarial, Risk Management, Compliance and Legal departments.
He will also continue as Chairman and Chief Executive Officer of
Aspen Insurance Limited, roles he has held since November 2006
and June 2002 respectively.  In addition, Mr. Cusack will
continue to chair Aspen's Reserving Committee and maintain
responsibility for certain special projects.

The company also disclosed that Richard Houghton, Chief
Financial Officer, will assume additional responsibilities for
operational oversight of Aspen's Human Resources, Information
Technology and Insurance/Reinsurance Claims departments.

Mr. Cusack and Mr. Houghton will continue to report to Chris
O'Kane, Chief Executive Officer.

The promotion of Mr. Cusack and the expansion of Mr. Houghton's
role follow the decision by Stuart Sinclair, President and Chief
Operating Office of Aspen, to resign effective as of April 17,
2008 in order to pursue other business and personal
opportunities.

Chris O'Kane, Chief Executive of Aspen, commented: "I would like
to congratulate Julian on his appointment as Chief Operating
Officer.  He has been an instrumental figure in Aspen's
development since the Company's inception and we are delighted
to be able to further access his business acumen.  I am also
pleased to expand Richard Houghton's role to take on additional
operational responsibilities – all in disciplines where he has
significant prior experience."

"Stuart has been highly effective in his role as an agent of
change at Aspen.  He has put in place the necessary
infrastructure to support our expansion in Europe and
reorganisation in the United States with great success and I
wish him all the very best in his future endeavours."

Glyn Jones, Chairman of Aspen, added: "Both Julian Cusack and
Richard Houghton are highly capable individuals and the
evolution of their responsibilities at Aspen is testament to the
depth of our senior management team.  I too would like to wish
Stuart well and thank him for his contribution to Aspen."

               About Aspen Insurance Holdings Ltd.

Headquartered in Hamilton, Bermuda, Aspen Insurance Holdings
Limited (NYSE: AHL) -- http://www.aspen.bm/-- provides
reinsurance and insurance coverage to clients in various
domestic and global markets through wholly-owned subsidiaries
and offices in Bermuda, France, Ireland, the United States, the
United Kingdom, and Switzerland.

                           *     *     *

Aspen Insurance Holdings Limited still carries Moody's Investors
Services 'Ba1' Preferred Stock rating with a stable outlook
assigned on Dec. 21, 2005.


CAPE OPPORTUNITIES: Proofs of Claim Filing Is Until May 30
----------------------------------------------------------
Cape Opportunities Fund Limited's creditors have until May 30,
2008, to prove their claims to Edward Allanby, the company's
liquidator, or be excluded from receiving any distribution or
payment.

In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.

Cape Opportunities' shareholder decided on March 5, 2008, to
place the company into voluntary liquidation under Bermuda's
Companies Act 1981.

The liquidator can be reached at:

          Edward Allanby
          Wessex house
          45 Reid Street, 2nd floor
          Hamilton HM11, Bermuda


SECURITY CAPITAL: Moody's Cuts Provisional Debt Rating to (P)Ba1
----------------------------------------------------------------
Moody's Investors Service has downgraded the debt ratings of
Security Capital Assurance Ltd.'s provisional senior debt to
(P)Ba1 from (P)Baa3, provisional subordinated debt to (P)Ba2
from (P)Ba1 and preference shares to B3 from Ba2) and a related
financing trust, with the ratings remaining on review for
further possible downgrade.  The rating action was prompted by
the company's announcement that it has elected not to declare
the semi-annual dividend  payment on its Series A perpetual non-
cumulative preference shares.  The insurance financial strength
ratings of Security Capital's operating subsidiaries, XL Capital
Assurance Inc., XL Capital Assurance (U.K.) Limited and XL
Financial Assurance Ltd. remain at A3 on review for possible
downgrade.

In its fourth quarter 2007 earnings release, Security Capital
reported a US$1.2 billion net loss for the quarter, with net
case loss reserve provisions of approximately US$700 million,
which were primarily related to impairment charges on ABS CDO
credit derivatives (US$652 million net), and to a lesser extent,
HELOC and closed-end second lien direct RMBS transactions (US$37
million net).  Moody's stated that the magnitude of credit
impairments and loss reserve activity announced by the company
falls within the range of losses previously considered by
Moody's in its rating action of Feb. 7, 2008, when the insurance
financial strength rating was downgraded to A3 from Aaa.

Security Capital has also announced some details related to its
strategic direction.  First, the company stated that it expects
that its independent auditor's opinion will not contain a going
concern explanatory paragraph in its audited 2007 financial
statements.  The company also announced that it will cease
writing new business to improve its capital position through
portfolio amortization.  Finally, Security Capital's board of
directors also elected not to declare a quarterly dividend on
the company's common shares or the semi-annual dividend on its
Series A perpetual non-cumulative preference shares.  On an
annual basis, the omission of these dividends would conserve
approximately US$22 million.

According to Moody's, the downgrade of Security Capital's Series
A preference shares to B3 from Ba2 reflects increased expected
losses on the security due to the omission of the dividend,
which is non-cumulative, and the potential for future dividends
to be omitted over the near to intermediate term.  Moody's also
downgraded Twin Reefs Pass-Through Trust to Ba1 from Baa2, which
reflects the increased possibility that dividends on this
security may also be omitted in the future.  Following XL
Financial Assurance Ltd.'s decision to exercise its put option
with Twin Reefs in February 2008, the assets held by this
financing trust now consist solely of its Series B preference
shares, which are non-cumulative, except under certain
circumstances.  To the extent XL Financial Assurance Ltd.
elected not to declare dividends on its Series B preferred
shares, the company would be unable to upstream dividends to the
holding company without the declaration and payment of dividends
to which its Series B preference shares are entitled.  While
such an action would preserve additional capital at XL Financial
Assurance Ltd. for the benefit of policyholders, the potential
disruption of dividends to the holding company, even if on a
voluntary basis, has negative implications for holding company
creditors, and influenced Moody's decision to downgrade by one
notch the provisional ratings on senior and subordinated debt,
to (P)Ba1 and (P)Ba2, respectively.  Moody's notes that there
is no senior or subordinated debt currently outstanding at the
holding company.

Finally, Moody's noted that Security Capital issued termination
notices on seven credit default swap contracts related to ABS
CDOs with one of its counterparties due to the alleged
repudiation of certain contractual obligations under the swap
agreements by such counterparty.  The counterparty disputes the
effectiveness of the terminations.  Credit impairments taken in
the fourth quarter related to these seven transactions totaled
approximately US$427 million, or 65% of the ABS CDO related
impairment charges taken during the fourth quarter of 2007.
While the ultimate outcome of this dispute remains uncertain, a
resolution favorable to the company could have positive
implications for its capital adequacy position.

Moody's stated that the continuing ratings review will focus on
additional details related to the company's capital plans and
future strategic direction.

Rating Actions:

These ratings remain on review for possible downgrade:

   -- XL Capital Assurance Inc.: insurance financial strength at
      A3;

   -- XL Capital Assurance (U.K.) Limited: insurance financial
      strength at A3; and

   -- XL Financial Assurance Ltd: insurance financial strength at
      A3.

These ratings have been downgraded, with the ratings remaining
on review for further possible downgrade:

Security Capital Assurance Ltd:

   -- Provisional rating on senior debt to (P)Ba1 from (P)Baa3,
      provisional rating on subordinated debt to (P)Ba2 from
      (P)Ba1 and preference shares to B3 from Ba2; and

Twin Reefs Pass-Through Trust:

   -- Contingent capital securities to Ba1 from Baa2.

The last rating action on Security Capital and its operating
subsidiaries occurred on March 4, 2008, when Moody's placed the
company's ratings on review for possible downgrade.

For the year ended Dec. 31, 2007, Security Capital reported a
net loss available to common shareholders of US$1.2 billion.  As
of Dec. 31, 2007, SCA had shareholders' equity of US$427
million.

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



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


VISTA GOLD: Posts US$14.2MM Net Loss in Year Ended Dec. 31, 2007
----------------------------------------------------------------
Vista Gold Corp. reported its financial results for the year
ended Dec. 31, 2007, as filed on March 17, 2008, with the United
States Securities and Exchange Commission and the Canadian
Securities Commission in Vista Gold's Annual Report on Form
10-K.  For the year ended Dec. 31, 2007, the company reported a
consolidated net loss of US$14.2 million compared to the 2006
consolidated net loss of US$4.2 million.  The increase of US$10
million in the net loss for 2007 is primarily the result of an
increase in the loss from discontinued operations of US$4.1
million, costs of US$2.9 million related to the completion of
the Arrangement, an increase in corporate administration and
investor relations costs of US$2.7 million and an increase in
exploration, property evaluation and holding costs of US$0.3
million.

The losses from discontinued operations of US$6.3 million in
2007 and US$2.3 million in 2006 are primarily the result of two
factors.  The first contributing factor relates to the
completion of the Arrangement on May 10, 2007 involving the
corporation, Allied Nevada Gold Corp. and Carl and Janet Pescio,
which resulted in, among other things, the transfer of the
corporation's Nevada properties and cash to Allied Nevada and
the acquisition by Allied Nevada of the Nevada mineral assets of
Carl and Janet Pescio.  As a result of the completion of the
Arrangement, the losses associated with the corporation's Nevada
properties are now reflected as losses from discontinued
operations. These losses amounted to US$0.4 million and US$2.1
million for the respective periods.  The financial effects of
the Arrangement are also reflected in the changes of working
capital and total assets, as discussed below.  The second
contributing factor, resulting in a loss from discontinued
operations of US$5.9 million in 2007, was the determination
that, as of Dec. 31, 2007, the Amayapampa project was held for
sale. Upon making this determination, the corporation assessed
the fair market value of the Amayapampa project using risk
adjusted economic models incorporating the terms of an arm's-
length proposal to purchase the project currently under
consideration by the corporation.  The economic models employed
indicated a fair market value for the Amayapampa project of
US$4.8 million as compared to the carrying value of US$10.3
million which necessitated a write-down of US$5.5 million.  The
Amayapampa project incurred losses of US$0.4 million during 2007
which have been included in losses from discontinued operations.

The corporation received net cash from financing activities of
US$4.3 million in 2007 compared to US$54.3 million in 2006. The
US$4.3 million in 2007 consisted primarily of net proceeds of
US$3.6 million from exercise of warrants and US$0.7 million from
the exercise of options.

Net cash used in investing activities in 2007 was US$31.3
million compared to US$3.7 million in 2006.  The increase of
US$27.6 million mostly reflects US$24.5 million cash transferred
to Allied Nevada in connection with the Arrangement Agreement
representing Vista Gold's payment of US$25 million less US$0.5
million in loans repaid to the company by Allied Nevada pursuant
to the terms of the Arrangement Agreement.  Other variances
include an increase in additions to mineral properties of US$4.2
million which is mostly due to a drilling program the
corporation undertook at the Mt. Todd project during 2007 and a
decrease in expenditures related to acquisitions of gold
properties of US$1.3 million since the corporation had no
property acquisitions in 2007.

At Dec. 31, 2007, the corporation's total assets were
US$51.3 million compared to US$92.7 million at Dec. 31, 2006,
representing a decrease of US$41.4 million.  Of this decrease,
US$9.9 million was attributed to the mineral properties
transferred to Allied Nevada; and US$5.4 million was attributed
to the restricted account balance transferred to Allied Nevada;
the remaining decrease was primarily made up of the reduction in
working capital mostly reflecting payment made to Allied Nevada
in connection with the Arrangement.

Vista Gold's financial position included current assets at
Dec. 31, 2007, of US$27.9 million compared to US$50.4 million at
Dec. 31, 2006.  Long-term liabilities totaled US$30,000 at
Dec. 31, 2007, compared to US$4.9 million at Dec. 31, 2006.  At
Dec. 31, 2007, the corporation had working capital of US$27.3
million, compared to US$49.7 million in 2006.  The company's
working capital of US$27.3 million as of Dec. 31, 2007,
decreased from that at Dec. 31, 2006 by US$22.4 million.  The
principal component of working capital for both 2007 and 2006 is
cash and cash equivalents of US$16.6 million and US$48.7
million, respectively.  Other components include marketable
securities (2007-US$10.9 million; 2006-US$0.8 million), accounts
receivable (2007-US$0.1 million; 2006-US$0.6 million) and other
liquid assets (2007-US$0.3 million; 2006-US$0.3 million).  The
decrease of US$22.4 million in working capital from 2007 to 2006
relates to the payment to Allied Nevada of US$25 million less
the receivable of US$0.5 million pursuant to the Arrangement
Agreement.  At Dec. 31, 2007, the company held marketable
securities available for sale with a quoted market value of
US$10.9 million.  Included in these marketable securities were
1,529,848 shares of Allied Nevada at a quoted market value of
US$9.5 million.  The corporation continues to hold these shares
of Allied Nevada, which it retained as part of the closing of
the Arrangement to facilitate payment of any taxes payable by
the corporation as a result of the Arrangement.  At Dec. 31,
2007, the company held no debt with banks or institutions.

Subsequent to year-end, Vista Gold completed a private placement
in which it issued US$30 million in aggregate principal amount
of senior secured convertible notes.

Executive Chairperson and Chief Executive Officer, Mike
Richings, commented on the 2007 financials:  "In comparing
this year's financial results with those for previous years,
shareholders should consider two important events which occurred
during the year that impacted our financial results, but which
we believe have long-term positive implications for our
shareholders.  First, there was the completion of the
Arrangement that resulted in the formation of Allied Nevada, a
new Nevada pure gold company, which was done largely with
contributions of the company's Nevada mineral properties and
cash, and resulted in the distribution to our shareholders of
approximately 0.794 Allied Nevada share for each share of the
corporation shares held. Second, our decision made during the
year to advance our key projects to the point where production
decisions can be made has resulted in increased expenditures.
As a result, we have significantly increased our estimate of
measured and indicated resources at Mt. Todd (on Feb. 27, 2008),
and we added a number of new members to our management team and
purchased key items of mill equipment in furtherance of our goal
to place the Paredones Amarillos project into production by the
end of 2009.  Also, as part of this decision to advance our key
projects to production decisions, we decided we would like to
sell or joint venture the Amayapampa project in Bolivia and
negotiations to do this are proceeding.  As previously
announced, we are seeking a partner or buyer for the Amayapampa
project with the financial and personnel resources to manage and
develop the project and commence commercial gold production in
the shortest time possible.  We feel that it is not appropriate
for management to be distracted by developing what is expected
to be a smaller project in Bolivia when we have larger projects
located in very favorable regions.  When we estimated the
Amayapampa project value, and incorporated appropriate risks, we
felt it was appropriate to reduce the carrying value; however,
if the project is successfully developed at current or higher
gold prices, we anticipate retaining an interest in the project
that will enable us to receive acceptable returns.  I believe we
are now well positioned to become a mid-tier producer over the
next few years and, we expect to generate attractive returns for
our shareholders."

The annual general meeting of the company's shareholders has
been scheduled for May 5, 2008, at 10:00 a.m., Vancouver time,
at the offices of Borden Ladner Gervais LLP, located at Suite
1200, 200 Burrard Street, Vancouver, British Columbia, Canada.

                       About Vista Gold Corp.

Vista Gold Corp. (Amex: VGZ; TSX), based in Littleton, Colorado,
evaluates and acquires gold projects with defined gold
resources.  Additional exploration and technical studies are
undertaken to maximize the value of the projects for eventual
development.  The corporation's holdings include the Maverick
Springs, Mountain View, Hasbrouck, Three Hills, Wildcat projects
and Hycroft mine, all in Nevada, the Long Valley project in
California, the Yellow Pine project in Idaho, the Paredones
Amarillos and Guadalupe de los Reyes projects in Mexico, the
Amayapampa project in Bolivia, and the Awak Mas deposit in
Indonesia.

                          *     *     *

As reported in the Troubled Company Reporter on April 1, 2004,
Vista Gold's independent auditors expressed doubt about the
company's ability to continue as a going concern after reviewing
its financial statements for the year ending Dec. 31, 2003.

Vista Gold reported US$2.2 million net loss for the three-month
period ended Sept. 30, 2007, US$3.23 million net loss for three-
month period ended June 30, 2007, and US$776,000 net loss for
the three-month period ended March 31, 2007.



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


AMERICAN AIRLINES: Latin American Revenues Increase to US$4.3B
--------------------------------------------------------------
American Airlines Inc.'s Latin American revenues increased by
6.1% to US$4.3 billion in 2007, compared to 2006, Latin Business
Chronicle reports.

Latin Business Chronicle relates that American Airlines'
Atlantic route rose by 4.3%, while the domestic and Pacific
routes decreased.  Overall, American Airlines grew 1.5%
worldwide.

According to Latin Business Chronicle, Latin America had
American Airlines' highest passenger revenue per available seat
mile, which increased 7.4% to 11.4 cents in Latin America in
2007.  Revenue per available seat mile for the whole firm was
10.73 cents in 2007.

However, increasing fuel costs are becoming a major concern,
Latin Business Chronicle notes.  "While we were generally
pleased with Latin America's performance this past year, the
price of fuel has greatly impacted our company's performance and
our operations," American Airlines' Latin American Division
Senior Vice President Peter Dolara commented to Latin Business
Chronicle.

Based in Fort Worth, Texas, American Airlines Inc., a wholly
owned subsidiary of AMR Corp., operates the largest scheduled
passenger airline in the world with service throughout North
America, the Caribbean, Latin America, Europe and Asia.  The
airline flies to Belgium, Brazil, Japan, among others.

                         *     *     *

As reported in the Troubled Company Reporter-Latin America on
Nov. 15, 2007, Fitch Ratings affirmed the debt ratings of
American Airlines, Inc.'s Issuer Default Rating at 'B-' and
Secured bank credit facility at 'BB-/RR1'.  Fitch says the
rating outlook has been revised to positive from stable.


BANCO NACIONAL: Disburses BRL12.1 Billion in Transpo Financings
---------------------------------------------------------------
The financings for investments on land transportation led Banco
Nacional de Desenvolvimento Economico e Social's disbursements
in the past 12 months ended February.  The sector received
BRL12.1 billion in the period, 71.4% superior to what was
released in the previous 12 months, of BRL7.1 billion.

Its important may also be observed when one analyzes the
participation of the resources released to the segment in BNDES'
overall figures.  The disbursements for investments on land
transportation represented 18% of the total released by
the Bank in the period and reached the widest participation
amongst the 15 segments that comprise the sector statistics,
monthly announced by BNDES.

The land transportation item which includes the highway modal
(cargo, passenger and school), railway modal and metro modal
received 85% more than the second largest sector release from
BNDES in the analyzed period, which was BRL6.6 billion to the
electric energy segment.  Yet, the energy sector kept good
performance registered in the past few months and presented a
109% expansion under the same comparison basis.

The highlights in the transportation sector were left to the
BRL7 billion for general cargo, segment which increased 71% in
relation to the previous 12 months.  The financings to railway
cargo transportation also presented expressive increase – 218%,
reaching releases of BRL1.6 billion in the period.

The land transportation sector's behavior (highway and railroad)
was positively influenced by the strong growth of the intensive
activities in this modality, such as mining and iron and steel.
Agriculture also positively influenced the transportation
expansion, due to its recovery since 2006, which performance
will likely be kept throughout the year.

Among the releases in the period one finds projects included in
the Growth Acceleration Program [PAC], such as the
Transnordestina project and the North-South Railroad project,
which sum up BRL710 million in disbursements in the period.
PAC's portfolio in the land transportation area in BNDES
currently totals BRL2.9 billion, besides BRL5.6 billion that are
being prospected and will demand total investments of
BRL34.0 billion.

The performance within the period confirms the expansion of
infrastructure projects in the Bank, a sector that disbursed
BRL26.5 billion, yielding a 64% increase.

    * Approvals

The approvals for land transportation in the past 12 months
ended in February also led the statistics, accompanying the
excellent disbursements' performance.  The growth was of 64%
under the same comparison basis, and the amount reached BRL15.9
billion, representing 15% of the total approved.

The electric energy sector, just like what was seen in the
disbursements ranking, occupied second place amongst the Bank's
sector approvals, being responsible for 13% of the total
approved.  Between March 2007 and February 2008, it summed up
BRL13.4 billion, yielding a 226% increase.

The performance of both sectors influenced the infrastructure
increase.  The segment approved investments of BRL44.3 billion
within the analyzed period, equivalent to a 75% expansion.

    * Overall performance

BNDES' disbursements summed up BRL66.6 billion in the past 12
months ended in February, a record amount, reflecting 21% growth
in comparison to the same previous period.  The approvals -–
BRL104.8 billion, augmented 32%; the framings reached BRL123.5
billion and the consultations BRL138.5 billion, representing
increases of 29% and 28%, respectively.

    * Sector performance

The industry projects received BRL26.8 billion from the Bank in
the past 12 months, a 10% drop, still reflecting the financings
retraction to exports.  On the other hand, the approvals for the
sector totaled BRL45.5 billion under the same period, equivalent
to a 10% increase in relation to the previous 12 months, a
result that points towards a disbursements' growth destined to
the sector.

Farming and cattle raising kept its growth path, both as regards
disbursements and approvals.  In the past 12 months, the
releases reached BRL5.1 billion (52% increase) and approved
projected reached BRL5.2 billion (21% increase).

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

                             *     *     *

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


BANCO NACIONAL: Okays BRL48.5 Million Loan to Petroquimica Uniao
----------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social has
authorized a BRL48.5 million loan to Petroquimica Uniao.

According to Banco Nacional, Petroquimica Uniao will use the
loan to boost its production capacity.  The expansion work
includes the installation of a modern flare with reduced smoke
emissions that will increase industrial gases capacity by 100
tons per hour to 605 tons per hour.  A BRL62.9 million
investment is needed in this project.

Petroquimica Uniao will create a unit to produce some 220 square
meters per hour of demineralized water, processing water and
minimizing residue generation, Business News Americas states.

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

                             *     *     *

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


BANCO NACIONAL: Unit Acquires Ordinary 10.8% Stake in Nutriplant
----------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social's private
equity unit BNDESpar has acquired 560,000 ordinary shares or a
10.8% stake in Nutriplant Industria e Comercio SA.

BNDESpar won't interfere in the control or structure of
Nutriplant.

Nutriplant Industria e Comercio SA is a Brazil-based company
engaged in the production, import and export of fertilizers and
animal nutrition.  The company's product line includes soil
fertilizers, cobalt, phosphates, organic minerals and liquid
nutrients for irrigation.  It is a subsidiary of Tripto
Participacoes Ltda.  Nutriplant offers its products under the
brand name FTE.  The Company is headquartered in Paulinia,
Brazil.

                       About Banco Nacional

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.


BRASKEM SA: Debt Servicing Prevents S&P's Investment Rating
-----------------------------------------------------------
Standard & Poor's petrochemical analyst Reginaldo Takara told
Business News Americas that Braskem SA's debt servicing
requirements is preventing the ratings agency from giving it an
investment grade rating.

Mr. Takara commented to BNamericas, "The company's financial
profile is the most relevant issue for Braskem today.  Its
business profile has gotten really strong with the integration
of the [petrochemical] hubs in northeast and southern Brazil,
which are extremely integrated into the company's operations."

BNamericas notes that S&P upgraded Braskem's rating to BB+ from
BB in November 2007 due to the company's strong operations.

Mr. Takara told BNamericas that Braskem's big investment plans
may raise the amount of debt the firm will take on, although it
will enjoy good loan terms.

Braskem's gross debt was BRL8.4 billion in December 2007, about
23% higher compared to September 2007, mainly due to its
acquisition of raw material producer Copesul.  The debt
increased even more sharply due to the appreciation of the
Brazilian real, compared to the US dollar, BNamericas states.

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

                            *     *    *

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


DELPHI CORP: Court Approves Denso Corp. Settlement Agreement
------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
granted the request of Delphi Corp. and its debtor-affiliates to
enter into a settlement agreement with Denso Corp.

The DENSO Settlement resolves the parties' dispute pertaining to
certain patent rights and other forms of intellectual property,
Neil Berger, Esq., at Togut, Segal & Segal LLP, in New York,
tells the Court.

The Debtors employ variable-valve timing technology to enhance
the performance of engines by adjusting the timing of the
opening and closing of engine valves according to environmental
and performance conditions.  The Debtors' cam phaser VVT
technology uses a camshaft that varies the timing of the valves
through an extra joint that allows irregularly shaped valve-
actuating cams on the camshaft to be rotated to varying
positions relative to the position of the crankshaft.  In 2005,
the Debtors introduced a new family of cam phaser VVT products
that feature axial locking pins to prevent unwanted slippage of
camshaft joints.

In July 2005, DENSO sent correspondence to the Debtors asserting
that certain features in the Debtors' cam phaser VVT products
infringed on its patents.  DENSO subsequently filed Claim Nos.
12339, 12340, and 12341 against the Debtors as unsecured non-
priority claims for US$697,778 each.

The Debtors objected to the DENSO Claims.

The Settlement was a product of due diligence and extensive
arm's-length negotiations.

The DENSO Settlement authorizes the Debtors to use the Delphi
VVT technology pursuant to a license agreement with DENSO.  The
Debtors agree to pay DENSO a royalty based upon the sales of
products containing the Delphi VVT technology.

In exchange, DENSO agrees to withdraw the DENSO Claims.

The DENSO Settlement will avoid the risks and costs involved in
litigating the DENSO Claims, Mr. Berger relates.  The Debtors
aver that the Settlement is fair and reasonable and in the best
interests of their estates and creditors.

The Debtors have sought and obtained the Court's permission to
file the DENSO Settlement under seal.  Copies of the Settlement
will only be provided to the U.S. Trustee and counsel to the
statutory committees.

The financial and other terms of the DENSO Settlement are
commercially sensitive and their disclosure could harm the
Debtors' position in the marketplace, Mr. Berger explains.

                        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.

(Delphi Bankruptcy News, Issue No. 117; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)

                            *     *     *

As reported in the Troubled Company Reporter-Latin America on
March 18, 2008, 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.

S&P 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.

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


DELPHI CORP: Ct. Allows Plan Investors' New EPCA Interpretation
---------------------------------------------------------------
The Honorable Robert Drain of the U.S. Bankruptcy Court for the
Southern District of New York denied Delphi Corp. and its
debtor-affiliates' request that the Court reject the Appaloosa
Management L.P.-led Plan Investors' interpretation of the
parties' New Equity Purchase and Commitment Agreement in
connection with General Motors Corp.'s increased participation
in the syndication of the Debtors' exit facility.

Judge Drain also denied Plan Investor A-D Acquisition Holdings,
LLC's request to vacate the March 5, 2008 Court order directing
the Plan Investors to show cause as to why the Debtors' request
should not be granted.

Judge Drain determined that GM's agreements in connection with
the Debtors' proposed revision to their Exit Financing were
prohibited by the New EPCA, Appaloosa noted in a regulatory
filing with the U.S. Securities and Exchange Commission.  The
Court, according to Appaloosa, also determined that it would
require an evidentiary hearing conducted pursuant to the
adversary proceeding rules to decide the other issues raised by
the parties, including whether the changes reflected by the
Revised Exit Financing were also prohibited by the New EPCA.
Those changes include the reduction in the aggregate amount of
the Exit Financing from US$6,800,000,000 to US$6,100,000,000.

ADAH filed a redacted version of its response to the Debtors'
request, as authorized by the Court, on March 11, 2008.  The
Plan Investor contended that the action is a "regrettable
manifestation of Delphi's conviction that, notwithstanding the
present dispute, no viable path to emergence exists and Delphi
may need to remain in the protective cloak of Chapter 11 while
the domestic credit markets remain troubled."  ADAH also
asserted that Delphi is only seeking rights and remedies that it
was unable to obtain in negotiations with the Plan Investors
many months ago.  It is entitled to rely on the hard-fought
contractual rights embedded in the deal that it negotiated with
Delphi, ADAH argued.

On behalf of ADAH, Douglas P. Baumstein, Esq., at White & Case
LLP, in New York, contended that despite the Plan Investors'
willingness to maintain flexibility and provide concessions when
operating in a consensual setting, the Debtors have dragged the
parties into a contested federal judicial proceeding.  "The
demarcation between the conference room and the Courtroom must
be maintained.  There is a contract here, governed by New York
law, that establishes distinct rights, rules, and remedies, and
the Court must interpret those rules within the confines of
law."

The New EPCA is not without a history, Mr. Baumstein reminded
the Court.  Each provision, he said, had a genesis in a detailed
course of events.  He argued that the Debtors may not divorce
any context from the genesis of the New EPCA, especially the
parties' agreement that, even in the worst case scenario, each
would be exposed solely to a capped quantum of damages for any
breach of a performance obligation.

The central problem with the Debtors' request is its skewed
premise that litigation can lead to an effective date closing,
Mr. Baumstein asserted.  "This proceeding cannot fix the credit
markets, cannot make Delphi a viable candidate for exit from
Chapter 11, cannot convince either side that their subjective
beliefs underlying the deal are somehow invalid and cannot
reform the parties' objective contractual arrangements . . .
[N]othing about a Court award of damages at some point in the
future will ab initio make a closing occur or allow Delphi to
exit."

As of March 12, 2008, the Appaloosa Plan Investors may be deemed
to beneficially own 125,739,448 shares of Delphi common stock,
representing 22.31% of all outstanding Delphi shares.

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 Co