TCRLA_Public/080403.mbx 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

Thursday, April 3, 2008, Vol. 9, No. 66

Headlines

A R G E N T I N A

ASOCIACION MUTUAL: Files for Reorganization in Court

GEN SISTEMAS: Proofs of Claim Verification Deadline is May 15

HUNTER JUNIORS: Proofs of Claim Verification is Until May 29

INDIAN CREEK: Proofs of Claim Verification Deadline is April 25

LOS REYES: Proofs of Claim Verification Deadline is May 12

MARASCO Y SPEZIALE: Files for Reorganization in Court

PERNOD RICARD: Fitch Lowers Ratings on Vin & Spirit Buy

QUIKSILVER INC: S&P Puts BB- Credit Rating under Negative Watch

RADIO REMISE: Proofs of Claim Verification is Until June 27

TALLERES UNION: Proofs of Claim Verification Deadline is June 16

B A H A M A S

PINNACLE ENTERTAINMENT: Moody's Holds 'B2' Corp. Family Rating

B E R M U D A

ELAN CORP: Court Dismisses Tysabri Investor Lawsuit

GLOBAL PARTNERS: Proofs of Claim Filing Deadline is April 18

GLOBAL PARTNERS: Final Shareholders Meeting Set for April 30

SECURITY CAPITAL: Unit Files Counterclaims Against Merrill Lynch

TYCO INTERNATIONAL: To Report 2nd Qtr. 2008 Results on May 1

B O L I V I A

ALCATEL-LUCENT SA: To Build Bolivia's 1st WiMAX System for Entel

COEUR D'ALENE: Begins Commissioning San Bartolome Silver Mine

B R A Z I L

BANCO BMG: To Sell Up to BRL100MM/Month Payroll Loans to Nossa

BANCO ITAU: To Spend US$10 Mln. for Chilean Life Insurance Unit

BANCO NACIONAL: OKs BRL7.30 Bil. Credit Line for Companhia Vale

BANCO NOSSA: To Buy Up to BRL100MM/Month Payroll Loans from BMG

NOVELL INC: Augments Operations With PlateSpin Buyout Completion

REALOGY CORP: CFO Hull Comments on S&P's March Outlook Action

TAM: Sao Paulo/Milan Route Carries 131,000 Passengers in 1st Yr.

UNIAO DE BANCOS: Will Establish Investment Bank

VALMONT INDUSTRIES: Revenue Growth Cues Moody's Rtng Lift to Ba1

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

AAM EMERGING: Sets Final Shareholders Meeting for April 4

CARBON TRADING: Will Hold Final Shareholders Meeting on April 4

CARBON TRADING MASTER: Final Shareholders Meeting is on April 4

CC CAYCO: Sets Final Shareholders Meeting for April 4

CHEYNE GLOBAL: Sets Final Shareholders Meeting for April 4

FINANCIAL RISK: Sets Final Shareholders Meeting for April 4

GLOBAL YACHT: Will Hold Final Shareholders Meeting on April 4

HIGHLAND SPECIAL: Proofs of Claim Filing Deadline is Tomorrow

NEW ORIENTAL: Will Hold Final Shareholders Meeting on April 4

PARMALAT SPA: Warrant Exercise Hikes Capital by EUR6.29 Million

SNOWBALL MULTI: Final Shareholders Meeting is on April 4

TGM CURRENCY: Sets Final Shareholders Meeting for April 4

C H I L E

QUEBECOR WORLD: Jefferies & Co. as Committee Bankers Approved

QUEBECOR WORLD: Kurtzman Carson Hiring as Committee Agent Okayed

QUEBECOR WORLD: Mesirow Hiring as Panel Financial Advisor Okayed

C O S T A R I C A

CINEMARK HOLDINGS: Elects Steven P. Rosenberg to Board

US AIRWAYS: Court of Appeals Upholds Ruling on R. Bosiger's Suit

US AIRWAYS: To Settle MD Aviation Claim by Paying US$11,500,000

US AIRWAYS: R. Thomas Demands Retirement Benefits Continued

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

CAP CANA: Land Court Judges Issue Arrest Warrant for R. Hazoury

DELTA AIR: Launches Food-for-Purchase Program in Caribbean

E L S A L V A D O R

AES CORP: Unit Gets Regulator Nod to Acquire Bioenergia Assets

G U A T E M A L A

BRITISH AIRWAYS: Facing GBP20Mln Costs Over Flight Cancellations

H A I T I

DYNCORP INT'L: Realigns Business, Adds Third Reporting Segment

H O N D U R A S

CHIQUITA BRANDS: Recalling Cantaloupes from Honduras

J A M A I C A

AIR JAMAICA: Will Suspend Three Weekly Flights to St. Lucia

CABLE & WIRELESS: Jamaican Unit Raises Line Rental Fee

CASH PLUS: Debt Exceeds Income; Goes Into Receivership

M E X I C O

CONSTELLATION COPPER: Defaults in CN$69 Million Debentures

COREL CORP: Gets Proposal from Shareholder Corel Holdings

DURA AUTOMOTIVE: Further Amends First Revised Chapter 11 Plan

DURA AUTOMOTIVE: Court Extends Exclusivity Deadline to April 30

* MEXICO: 2008 Outlook for Major Banks is Adequate, Fitch Says

P U E R T O R I C O

DORAL FINANCIAL: S&P Lifts LT Counterparty Credit Rating to B+

V E N E Z U E L A

PETROLEOS DE VENEZUELA: Debt Up 449% in 2007, 28.5% of Assets

X X X X X X

* Moody's Sees Neg. Outlook for Global Paper & Forest Products

- - - - -

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A R G E N T I N A

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

ASOCIACION MUTUAL: Files for Reorganization in Court

----------------------------------------------------

Asociacion Mutual del Personal de la Administracion Publica

Buenos Aires has requested for reorganization approval after

failing to pay its liabilities.

The reorganization petition, once approved by the court, will

allow Asociacion Mutual 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. 9 in Buenos Aires. Clerk No. 18 assists the court

in this case.

The debtor can be reached at:

Asociacion Mutual del Personal de la

Administracion Publica Buenos Aires

Tucuman 1424

Buenos Aires, Argentina

GEN SISTEMAS: Proofs of Claim Verification Deadline is May 15

-------------------------------------------------------------

Diana Panitch, the court-appointed trustee for Gen Sistemas

Medicos SRL's bankruptcy proceeding, will be verifying

creditors' proofs of claim until May 15, 2008.

Ms. Panitch will present the validated claims in court as

individual reports. The National Commercial Court of First

Instance No. 18 in Buenos Aires, with the assistance of Clerk

No. 35, 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 Gen Sistemas 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 Gen Sistemas'

accounting and banking records will be submitted in court.

Ms. Panitch is also in charge of administering Gen Sistemas'

assets under court supervision and will take part in their

disposal to the extent established by law.

The debtor can be reached at:

Gen Sistemas Medicos SRL

Pasteur 174

Buenos Aires, Argentina

The trustee can be reached at:

Diana Panitch

Avenida Corrientes 1250

Buenos Aires, Argentina

HUNTER JUNIORS: Proofs of Claim Verification is Until May 29

------------------------------------------------------------

Edgardo Alberto Borghi, the court-appointed trustee for Hunter

Juniors SA's bankruptcy proceeding, will be verifying creditors'

proofs of claim until May 29, 2008.

Mr. Borghi 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 Hunter Juniors 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 Hunter Juniors'

accounting and banking records will be submitted in court.

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

Mr. Borghi is also in charge of administering Hunter Juniors'

assets under court supervision and will take part in their

disposal to the extent established by law.

The debtor can be reached at:

Hunter Juniors SA

Yerbal 1032

Buenos Aires, Argentina

The trustee can be reached at:

Edgardo Alberto Borghi

Luis Viale 2176

Buenos Aires, Argentina

INDIAN CREEK: Proofs of Claim Verification Deadline is April 25

---------------------------------------------------------------

Elsa Ester Andrade, the court-appointed trustee for Indian Creek

S.A.'s bankruptcy proceeding, will be verifying creditors'

proofs of claim until April 25, 2008.

Ms. Andrade will present the validated claims in court as

individual reports. The National Commercial Court of First

Instance in Buenos Aires will determine if the verified claims

are admissible, taking into account the trustee's opinion, and

the objections and challenges that will be raised by Indian

Creek 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 Indian Creek's

accounting and banking records will be submitted in court.

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

Ms. Andrade is also in charge of administering Indian Creek's

assets under court supervision and will take part in their

disposal to the extent established by law.

The debtor can be reached at:

Molise SA

La Pampa 5981

Buenos Aires, Argentina

The trustee can be reached at:

Elsa Ester Andrade

Avenida Callao 449

Buenos Aires, Argentina

LOS REYES: Proofs of Claim Verification Deadline is May 12

----------------------------------------------------------

Silvia Gloria Muavero, the court-appointed trustee for Los Reyes

Magos S.R.L.'s bankruptcy proceeding, will be verifying

creditors' proofs of claim until May 12, 2008.

Ms. Muavero will present the validated claims in court as

individual reports on June 23, 2008. The National Commercial

Court of First Instance in Buenos Aires will determine if the

verified claims are admissible, taking into account the

trustee's opinion, and the objections and challenges that will

be raised by Los Reyes 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 Los Reyes' accounting

and banking records will be submitted in court on Aug. 25, 2008.

Ms. Muavero is also in charge of administering Los Reyes' assets

under court supervision and will take part in their disposal to

the extent established by law.

The trustee can be reached at:

Silvia Gloria Muavero

Alsina 1760

Buenos Aires, Argentina

MARASCO Y SPEZIALE: Files for Reorganization in Court

-----------------------------------------------------

Marasco y Speziale Sacifei has requested for reorganization

approval after failing to pay its liabilities since

Feb. 21, 2008.

The reorganization petition, once approved by the court, will

allow Marasco y Speziale 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. 12 in Buenos Aires. Clerk No. 24 assists the court

in this case.

The debtor can be reached at:

Marasco y Speziale Sacifei

Pasco 763/65

Buenos Aires, Argentina

PERNOD RICARD: Fitch Lowers Ratings on Vin & Spirit Buy

-------------------------------------------------------

Fitch Ratings downgraded French Wine and Spirit maker Pernod

Ricard SA's Long-term Issuer Default and senior unsecured

ratings to 'BB+' from 'BBB-' (BBB minus). The Short-term IDR

has also been downgraded to 'B' from 'F3'. The Outlook for the

Long-term IDR has been changed to Negative from Stable.

These rating actions follow the March 31, 2008 announcement by

Pernod that it will be paying EUR5.6bn cash, including assumed

debt of EUR366m, for the acquisition of Swedish alcoholic

beverages group Vin & Sprit.

"While this transaction enables Pernod to address its two main

relative weaknesses compared to industry leader Diageo, namely

the lack of adequate critical mass in the important US market

and the lack of a comparably strong presence in the high growth

vodka category, the high and fully debt-funded acquisition price

takes the group's leverage to the 'BB' rating category," says

Giulio Lombardi, Senior Director in Fitch's Retail and Consumer

Products Group.

Following the V&S acquisition, leverage (as calculated on a

lease and pension adjusted basis) will increase to above 6.0x.

Excluding any exceptional cash charges, Pernod, together with

V&S, should be able to generate an annual Free Cash Flow of

approximately EUR300-400m, which Fitch assumes would be mostly

applied to debt reduction.

However, Fitch calculates that it could take at least three

years for Pernod to reach credit metrics consistent with an

investment grade rating, a timeframe that makes it difficult to

justify affirming the ratings. During the next three years,

Pernod will also be faced with a slowing outlook for consumer

spending in western Europe and the US, as well as challenges to

implement budgeted synergies, as it will initially not fully

control the distribution channels for Absolut Vodka in the US

and internationally.

Additionally, the group's growth ambitions could potentially

prevail over any commitment to return to investment grade

ratings. Through this acquisition, Pernod strengthens its

number two position in the global western-style spirits

industry, reaching a market share of 18.6% in volume terms.

However, Diageo's advantage (24.2% global market share) remains

strong, thanks to net sales (in value terms) of approximately

1.5x Pernod's in each of the European and US markets and a less

fragmented product portfolio. Pernod's ambitions to further

close its gap with Diageo might require more acquisition

spending.

The combination of risks from the integration, payments to sever

ties with distribution partners, as well as possible acquisition

spending and slower EBITDA growth might even prejudice the

achievement of 'BB+' credit metrics, thus underpinning the

current Negative Outlook.

Headquartered in Paris, France, Pernod Ricard --

http://www.pernod-ricard.com/-- produces and distributes

spirits and wines. The Company operates in Europe, North

America, Central and South America, and the Asia-Pacific region.

In Latin America and South America, the company operates in

Argentina, Brazil, Chile, Colombia, Mexico, Uruguay and

Venezuela.

Pernod Ricard benefits from a portfolio comprising some of the

most prestigious brands in the sector: Ricard aniseed,

Ballantine’s, Chivas Regal and The Glenlivet Scotch whiskies,

Jameson Irish Whiskey, Martell cognac, Havana Club rum, ,

Beefeater gin, Kahlúa and Malibu liqueurs, Mumm and Perrier-

Jouët champagnes, as well as Jacob’s Creek and Montana wines.

The Group favours a decentralised organisation, with "Brand

Owners" and "Distribution" companies established in each key

market, and employs a workforce of around 18,000 in 70

countries.

In addition, Pernod Ricard is strongly committed to a policy of

Corporate Social Responsibility and encourages responsible

consumption in order to prevent alcohol misuse and abuse.

QUIKSILVER INC: S&P Puts BB- Credit Rating under Negative Watch

---------------------------------------------------------------

Standard & Poor's Ratings Services placed its ratings on

Quiksilver Inc., including its 'BB-' corporate credit rating, on

CreditWatch with negative implications. The Huntington Beach,

Calif.-based apparel company had about US$996 million in debt

outstanding at Jan. 31, 2008.

The CreditWatch placement reflects the much weaker-than-expected

credit measures reported for the first quarter ended January

2008. "While we expected that results would be lower due to the

company's current difficulties with its Rossignol hard-good

equipment business," said Standard & Poor's credit analyst

Susan Ding, "financial measures for the last 12 months came in

well below our expectations, despite the US$100 million debt

reduction from the sale of its Cleveland Golf business in

December 2007."

Standard & Poor's originally expected that leverage would be

about 4.7x at year end (adjusted for the sale of Cleveland

Golf). However, due to losses at the Rossignol business that

depressed the EBITDA base significantly, leverage climbed to

close to 6x for the 12 months ended January 2008 versus about

5.7x for the 12 months ended October 2007. Total debt also

increased as a result of increased capitalized operating leases,

due to the new retail stores opened during the year. Although

the company announced it will explore selling the Rossignol

business, it is uncertain when and if the company would be able

to effect a transaction, in light of the current economic

environment, and what the magnitude would be of any potential

debt reduction from the application of sale proceeds and ensuing

improvement in credit measures.

"We will meet with management to further discuss Quiksilver's

operating trends and forecasts in order to resolve the

CreditWatch," said Ms. Ding.

Quiksilver, Inc. -- http://www.quiksilver.com/-- is a globally

diversified company that designs, produces and distributes

branded apparel, wintersports equipment, footwear, accessories

and related products. Its products are sold in over 90 countries

in a range of distribution channels, including surf shops, ski

shops, skateboard shops, snowboard shops, its Boardriders Club

shops, other specialty stores and select department stores. The

Company has three operating segments, the Americas, Europe and

Asia/Pacific. The Americas segment includes revenues primarily

from the United States and Canada. The European segment includes

revenues primarily from Western Europe. The Asia/Pacific

segment includes revenues primarily from Australia, Japan, New

Zealand and Indonesia. In October 2007, the Company entered into

an agreement to sell its golf equipment business. This

transaction was completed in December 2007. The company has

operations in Argentina.

Standard & Poor's Ratings Services assigned a BB- rating on

Quiksilver Inc.

RADIO REMISE: Proofs of Claim Verification is Until June 27

-----------------------------------------------------------

Manuel Alberto Cibeira, the court-appointed trustee for Radio

Remise S.A.'s bankruptcy proceeding, will be verifying

creditors' proofs of claim until June 27, 2008.

Mr. Cibeira will present the validated claims in court as

individual reports on Aug. 27, 2008. The National Commercial

Court of First Instance in Buenos Aires will determine if the

verified claims are admissible, taking into account the

trustee's opinion, and the objections and challenges that will

be raised by Radio Remise 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 Radio Remise's

accounting and banking records will be submitted in court on

Oct. 8, 2008.

Mr. Cibeira is also in charge of administering Radio Remise's

assets under court supervision and will take part in their

disposal to the extent established by law.

The trustee can be reached at:

Manuel Alberto Cibeira

Avenida Cordoba 1247

Buenos Aires, Argentina

TALLERES UNION: Proofs of Claim Verification Deadline is June 16

----------------------------------------------------------------

Mauricio Leon Zafran, the court-appointed trustee for Talleres

Union S.A. de Artes Graficas Industrial y Comercial's bankruptcy

proceeding, will be verifying creditors' proofs of claim until

June 16, 2008.

Mr. Zafran will present the validated claims in court as

individual reports on Aug. 19, 2008. The National Commercial

Court of First Instance in Buenos Aires will determine if the

verified claims are admissible, taking into account the

trustee's opinion, and the objections and challenges that will

be raised by Talleres Union 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 Talleres Union's

accounting and banking records will be submitted in court on

Oct. 1, 2008.

Mr. Zafran is also in charge of administering Talleres Union's

assets under court supervision and will take part in their

disposal to the extent established by law.

The debtor can be reached at:

Talleres Union S.A. de Artes Graficas Industrial y

Comercial

Patagones 2748

Buenos Aires, Argentina

The trustee can be reached at:

Mauricio Leon Zafran

Avenida Callao 420

Buenos Aires, Argentina

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

B A H A M A S

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

PINNACLE ENTERTAINMENT: Moody's Holds 'B2' Corp. Family Rating

--------------------------------------------------------------

Moodys Investors Service affirmed all ratings for Pinnacle

Entertainment Inc. and revised the rating outlook to stable from

positive.

This was in anticipation of a moderation in the company's

consolidated operating performance through 2008 as a result of

less favorable economic conditions along with the expectation

that Pinnacle intends to pursue new development opportunities in

Louisiana and Atlantic City, New Jersey. This makes it unlikely

that the company will achieve the credit metrics required for

higher rating.

Pinnacle's B2 corporate family, B2 probability of default, Ba2

(LGD-2, 17%) senior secured bank loan, and B3 (LGD-5, 76%)

senior subordinated note ratings were affirmed.

Pinnacle recently announced that it may delay new development in

Atlantic City, New Jersey and potentially other projects as

well, because of volatile capital markets and debt restrictions

included in two of its senior subordinated note indentures.

However, when market conditions improve, it's expected that

Pinnacle will pursue a refinancing of its existing capital

structure and raise additional debt to give it the flexibility

and funding necessary to proceed with these new development

projects. As a result, debt EBITDA is expected to peak at a

level greater that the company's fiscal 2007 debt EBITDA of 5.5

times.

Pinnacle's ratings reflect the company's high leverage, the

competition its Belterra casino faces from two new Indiana

racinos that are scheduled to open relatively soon, and intense

competition in Bossier City. Ratings are supported by the good

initial ramp-up results at the recently opened Lumiere casino in

St. Louis, Missourri and strong results from Pinnacle's

L'Auberge casino in Lake Charles, Lousiana. L'Auberge has been

operating for two full years and has exceeded original

expectations in terms of revenue and EBITDA. Also considered

are Pinnacle's good liquidity position and delayed development

timeline which will allow the company to accumulate surplus cash

flow that can be used for future development.

Pinnacle owns and operates casinos in Nevada, Louisiana,

Indiana, Missouri, Argentina and The Bahamas. Reported net

revenues for the fiscal year ended Dec. 31, 2007 were

US$924 million.

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

B E R M U D A

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

ELAN CORP: Court Dismisses Tysabri Investor Lawsuit

----------------------------------------------------

U.S. District Judge Richard Holwell has thrown out a class

action lawsuit brought by investors against Elan Corp PLC and

its executives over its multiple sclerosis drug Tysabri, Reuters

reports.

Reuters recounts that the plaintiffs accused Elan and its

executives of misrepresentations and omissions regarding the

safety, commercial viability and projected market share of

Tysabri, causing the company's stock price to be artificially

inflated.

In an opinion posted on March 28, 2008, Judge Holwell, who sits

in Federal court in Manhattan, said that the plaintiffs had

failed to adequately show that Elan and its executives had

motive and opportunity to commit fraud.

Judge Holwell said that the plaintiffs could file a motion for

permission to amend their complaint.

Reuters explains that Tysabri, which is made by Biogen Idec Inc

and Elan, was temporarily suspended from the market in 2005

after some patients developed a potentially deadly brain

infection. The drug was allowed back on the market in 2006 with

certain restrictions after U.S. regulators decided multiple

sclerosis patients were willing to accept the risks in return

for the potential benefits.

About the Company

Headquartered in Ireland, Elan Corporation plc (NYSE: ELN) --

http://www.elan.com/-- is a neuroscience-based biotechnology

company. Elan shares trade on the New York, London and Dublin

Stock Exchanges. The company has locations in Bermuda and

Japan.

* * *

As of April 1, 2008, Elan Corp. plc carries Moody's long-term

corporate family rating of B3, probability of default rating of

B2 with positive outlook.

Standard & Poors gave the company B rating on long-term foreign

issuer credit and B rating on long-term local issuer credit with

positive outlook.

GLOBAL PARTNERS: Proofs of Claim Filing Deadline is April 18

------------------------------------------------------------

Global Partners Ltd.'s creditors are given until April 18, 2008,

to prove their claims to Christopher C. Morris, 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.

Global Partners' shareholders agreed on March 25, 2008, to place

the company into voluntary liquidation under Bermuda's Companies

Act 1981.

The liquidator can be reached at:

Christopher C. Morris

Century House

16 Par-la-Ville Road, Hamilton

Bermuda

GLOBAL PARTNERS: Final Shareholders Meeting Set for April 30

------------------------------------------------------------

Global Partners Ltd. will hold its final general meeting on

April 30, 2008, at 3:00 p.m. at Arthur Morris, Christensen &

Co., Century House, 16 Par-la-Ville Road, Hamilton, Bermuda.

These matters will be taken during the meeting:

1) accounting of the liquidation process showing how the

winding up has been conducted during the preceding year,

and

2) authorizing the liquidator to retain the records

of the company for a period of three years from

the dissolution of the company, after which they

may be destroyed.

Global Partners' shareholders agreed on March 25, 2008, to place

the company into voluntary liquidation under Bermuda's Companies

Act 1981.

The liquidator can be reached at:

Christopher C. Morris

Century House

16 Par-la-Ville Road, Hamilton

Bermuda

SECURITY CAPITAL: Unit Files Counterclaims Against Merrill Lynch

----------------------------------------------------------------

Security Capital Assurance Ltd.'s financial guarantee subsidiary

XL Capital Assurance Inc. has filed its answer and counterclaims

in the United States District Court for the Southern District of

New York against Merrill Lynch International and Merrill Lynch &

Co. Inc., in response to Merrill Lynch International's March 19,

2008 lawsuit against XL Capital.

In its filing, XL Capital disputes the legal claims filed by

Merrill Lynch International and defends the terminations of the

seven credit default swaps entered into between XL Capital and

Merrill Lynch International. As noted in the counterclaim, "In

attempting to offload subprime mortgage and other liabilities

related to troubled collateralized debt obligations (CDOs),

Merrill Lynch & Co. agreed to provide third parties with control

rights over seven of its CDOs, even though those same control

rights had already been exclusively committed to XLCA." XL

Capital required sole control rights under the seven CDOs at

issue as a "fundamental condition" to entering into the credit

default swaps with Merrill Lynch International. However, during

its 2007 third quarter in which it would write down

approximately US$7.9 billion in its CDO and subprime mortgage

businesses, "Merrill Lynch undertook a rushed campaign to find

parties willing to hedge or provide protection on its remaining

CDO positions. Determined to get these CDO risks off its books

at all costs before the third quarter of 2007 closed, Merrill

Lynch made the decision to blatantly ignore its prior

commitments to XLCA."

XL Capital's counterclaims ask the court to declare that its

terminations are effective and that it has no additional

obligations under the credit default swaps. The notional amount

of the terminated credit default swaps at Dec. 31, 2007,

aggregated US$3.1 billion before reinsurance. For the year

ended Dec. 31, 2007, Security Capital Assurance Ltd. recorded a

charge of US$632.3 million relating to these credit default

swaps, of which US$215 million represents a net unrealized,

mark-to-market loss and US$417.3 million represents the

provision of case basis reserves for losses and loss adjustment

expenses.

In addition, XL Capital seeks damages estimated to be at least

US$28 million for amounts that Merrill Lynch International is

obligated to pay XL Capital under the terms of the credit

default swaps as a result of the terminations.

Security Capital stated, "Despite whatever claims Merrill Lynch

may make regarding our decision to enforce these contract

terminations, we believe Merrill Lynch gave away our control

rights on seven CDOs in direct violation of our agreements. On

behalf of our policy holders and shareholders, we intend to

defend the terminations vigorously and look forward to

presenting our case to the court soon."

About Security Capital

Security Capital Assurance Ltd. (NYSE: SCA) --

http://www.scafg.com-- is a Bermuda-domiciled holding company

whose primary operating subsidiaries, XL Capital Assurance Inc.

and XL Financial Assurance Ltd, provide credit enhancement and

protection products to the public finance and structured finance

markets throughout the United States and internationally.

* * *

As reported in the Troubled Company Reporter-Latin America

March 25, 2008, Standard & Poor's Ratings Services lowered its

rating on Security Capital Assurance Ltd.'s series A perpetual

noncumulative preference shares to 'C' from 'BB-'. The shares

remain on CreditWatch with negative implications.

At the same time, S&P withdrew its 'BB+' preliminary senior

secured debt rating and 'BB-' preliminary preferred stock rating

on SCA's Rule 415 shelf registration. These actions follow the

company's recent announcement that its board of directors

elected not to declare a semiannual dividend payable on

March 31, 2008.

TYCO INTERNATIONAL: To Report 2nd Qtr. 2008 Results on May 1

------------------------------------------------------------

Tyco International Ltd. will report its results for the second

quarter of fiscal 2008 before trading begins on May 1, 2008.

The company will hold a conference call for investors at 8:30

a.m. EDT. The call can be accessed in these ways:

-- At the company's website: http://investors.tyco.com.

-- By telephone: For both "listen-only" participants and

those participants who wish to take part in the question-

and-answer portion of the call, the telephone dial-in

number in the United States is (800) 398-9402. The

telephone dial-in number for participants outside the

U.S. is (612) 332-1214.

-- An audio replay of the conference call will be available

beginning at 10:30 a.m. on May 1, 2008 and ending on May

8, 2008. The dial-in number for participants in the

U.S. is (800) 475-6701. For participants outside the

U.S., the replay dial-in number is (320) 365-3844. The

replay access code for all callers is 918069.

Based in Pembroke, Bermuda, Tyco International Ltd. (NYSE: TYC)

-- http://www.tyco.com/-- provides security, fire protection

and detection, valves and controls, and other industrial

products and services to customers in four business segments:

Electronics, Fire & Security, Healthcare, and Engineered

Products & Services. With 2007 revenue of US$18 billion, Tyco

employs approximately 118,000 people worldwide. In Latin

America, Tyco has presence in Argentina, Brazil, Chile, Costa

Rica, Ecuador, Honduras, and the Bahamas.

Effective June 29, 2007, Tyco International Ltd. completed the

spin-offs of Covidien and Tyco Electronics, formerly its

Healthcare and Electronics businesses, respectively, into

separate, publicly traded companies in the form of a

distribution to Tyco shareholders.

* * *

As reported in the Troubled Company Reporter on Dec. 21, 2007,

in its annual report for the year ended Sept. 28, 2007, Tyco

said that on Nov. 8, 2007, The Bank of New York delivered to the

company a notice of events of default. The notice claims that

the actions taken by the company in connection with its

separation into three public entities constitute events of

default under certain indentures.

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

B O L I V I A

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

ALCATEL-LUCENT SA: To Build Bolivia's 1st WiMAX System for Entel

----------------------------------------------------------------

Alcatel-Lucent S.A. has been awarded a contract by Entel S.A. to

deploy the first commercial WiMAX Rev-e (802.16e-2005 standard)

network in Bolivia. This new network will support voice over IP

(VoIP), high-speed Internet access, video and other data

services for Entel customers.

The new network will accommodate stationary and nomadic

applications, and will complement the carrier's existing fixed-

based broadband services. Entel plans to launch commercial

service of the network by the end of this quarter.

Alcatel-Lucent will provide its end-to-end WiMAX solution,

including base stations, wireless access controllers, software

and application platforms. It also will provide design and

planning for end-to-end network integration services, including

radio network planning, installation and commissioning, project

management and support services for Entel's network.

To ensure Entel's customers will benefit from early, state-of-

the-art WiMAX devices that comply with the IEEE 802.16e-2005

standard, Alcatel-Lucent has teamed up with ZyXEL, a pioneer in

this domain, to provide customer-premises equipment.

In addition to being able to offer new revenue-generating

services, Entel will benefit from additional operational

efficiencies because this solution offers one of the most

advanced technologies in terms of radio frequency management.

"In fast-growing economies such as Bolivia, our universal WiMAX

solution is the ideal means of rapidly and cost-effectively

increasing penetration of high-speed Internet access and basic

telephony services via VoIP, because the carrier can avoid the

costly and disruptive civil engineering work involved in

deploying copper or optical fiber cable," said Alcatel-Lucent's

President of Caribbean & Latin America activities, Victor

Agnellini. "This project underscores Alcatel-Lucent's

commitment to WiMAX as a key element of its universal broadband

access strategy, and expands the company's footprint in the

region."

With more than 70 pilots and deployments across the world and 22

commercial contracts signed since the beginning of 2007,

Alcatel-Lucent is No. 1 in the worldwide WiMAX market.

About Entel S.A.

Entel is the leading telecommunication operator of Bolivia

providing nationwide fixed and mobile communications as

well as value added services. The company has invested over

US$740 million in the country to serve the fast growing demand

of telecommunication services in the urban and rural communities

of Bolivia.

About Alcatel-Lucent

Headquartered in Paris, France, Alcatel-Lucent S.A. --

http://www.alcatel-lucent.com/-- provides solutions that

enable service providers, enterprises and governments worldwide

to deliver voice, data and video communication services to end

users.

Alcatel-Lucent maintains operations in 130 countries, including,

Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada,

United States, Costa Rica, Dominican Republic, El Salvador,

Guatemala, Peru, Venezuela, Indonesia, Australia, Brunei and

Cambodia.

* * *

As reported in the TCR-Europe Nov. 9, 2007, Moody's Investors

Service downgraded to Ba3 from Ba2 the Corporate Family Rating

of Alcatel-Lucent. The ratings for senior debt of the group

were equally lowered to Ba3 from Ba2 and the trust preferred

notes of Lucent Technologies Capital Trust I have been

downgraded to B2 from B1. At the same time, Moody's affirmed

its Not-Prime rating for short-term debt of Alcatel-Lucent.

Moody's said the outlook for the ratings is stable.

Alcatel-Lucent's Long-Term Corporate Credit rating and Senior

Unsecured Debt carry Standard & Poor's Ratings Services' BB

rating. Its Short-Term Corporate Credit rating stands at B.

COEUR D'ALENE: Begins Commissioning San Bartolome Silver Mine

-------------------------------------------------------------

Coeur d'Alene Mines Corp. has begun commissioning its San

Bartolome silver mine in Bolivia and expects the first dore pour

by the end of April.

Business News Americas relates that Coeur d'Alene started

crushing and stockpiling ore. It has become connected to the

Bolivian national power grid, allowing the firm to complete the

final commissioning of the grinding, leaching, and silver

recovery circuits.

Coeur d'Alene told BNamericas that San Bartolome will reach full

capacity in August. It will "churn out 6Moz of silver in 2008

at US$4.10/oz in cash costs, excluding royalties and production

taxes in the order of US$2.03/oz."

San Bartolome will produce 10Moz of silver in its first year

after the "ramp-up to full capacity." It has 153Moz of silver

reserves and some 34.2Moz of indicated resources that will make

it last for 14 years, BNamericas states.

Coeur d'Alene Mines Corp. (NYSE:CDE) (TSX:CDM) --

http://www.coeur.com/-- is the world's largest primary silver

producer, as well as a significant, low-cost producer of gold.

The company has mining interests in Nevada, Idaho, Alaska,

Argentina, Chile, Bolivia and Australia.

* * *

Coeur d'Alene Mines Corp.'s US$180 Million notes due

Jan. 15, 2024, carry Standard & Poor's Ratings Services B-

rating.

===========

B R A Z I L

===========

BANCO BMG: To Sell Up to BRL100MM/Month Payroll Loans to Nossa

--------------------------------------------------------------

Banco Nossa Caixa will buy up to BRL100 million per month in

payroll loans from Banco BMG over the next 12 months.

Business News Americas relates that according to the terms of

the accord between Banco Nossa and Banco BMG, the deal could be

worth as much as BRL1.20 billion in payroll loans.

According to BNamericas, Banco Nossa's Chief Executive Officer

Milton Luiz de Melo Santos said in March that the bank was

considering purchasing loans generated by other financial

institutions to expand its retail loan book up to 45% this year.

The report says that Banco Nossa increased loans to individuals

by 23.2% to BRL6.63 billion in 2007, compared to 2006, due to a

33.3% growth in payroll loans to Sao Paulo state workers. The

payroll loans totaled BRL3.49 billion.

BNamericas notes that Banco BMG's Chief Executive Officer

Ricardo Guimaraes said the bank was generating over

BRL600 million per month in new loans.

Banco BMG will increase lending at least 25% this year compared

to last year, which increased 44.5% to BRL12.5 billion,

BNamericas states.

Banco BMG is the banking arm of Grupo BMG, which also has real

estate, food manufacturing and agro industry holdings. The bank

is a niche player focused on loans to civil servants, with

repayments taken monthly from payrolls. BMG operates mainly

through in-house representatives in state companies. It also

offers leasing and asset management services.

* * *

As reported in the Troubled Company Reporter-Latin America on

June 26, 2007, Standard & Poor's Ratings Services raised its

long-term counterparty credit rating on Banco BMG S.A. to 'BB-'

from 'B+'. The rating was removed from CreditWatch Positive

where it was placed June 11, 2007. S&P said the outlook is

stable.

On March 10, 2008, Moody's Investors Rating gave Banco BMG's

US$250 million issue a Ba1 long-term foreign currency debt

rating with a stable outlook and the bank's US$1 billion note

program a Ba1 long-term foreign currency rating with a stable

outlook and a Not Prime short-term foreign currency rating.

BANCO ITAU: To Spend US$10 Mln. for Chilean Life Insurance Unit

---------------------------------------------------------------

Banco Itau Holding Financeira SA's Latin American Chief

Executive Officer Ricardo Marino told journalists that the bank

will spend US$10 million to launch a Chilean life insurance unit

later this year.

According to Business News Americas, Mr. Marino said that the

planned unit will concentrate on individual life insurance,

which is in line with Banco Itau's country strategy of focusing

on higher-income customers.

Mr. Marino denied that Banco Itau will enter Chile's mandatory

pension system because an enacted reform prevents banks from

offering these plans to the public, the news agency states.

Banco Itau entered the Chilean market in February 2007 when it

concluded the acquisition of BankBoston Chile and rebranded it

Itau Chile, BNamericas adds.

Banco Itau Holding Financeira SA -- http://www.itau.com.br/--

is a private bank in Brazil. The company has four principal

operations: banking -- including retail banking through its

wholly owned subsidiary, Banco Itau SA(Itau), corporate banking

through its wholly owned subsidiary, Banco Itau BBA SA (Itau

BBA) and consumer credit to non-account hold customers through

Itaucred -- credit cards, asset management and insurance,

private retirement plans and capitalization plans, a type of

savings plan. Itau Holding provides a variety of credit and

non-credit products and services directed towards individuals,

small and middle market companies and large corporations. The

bank has offices in Miami, New York, Hongkong, Lisbon,

Luxembourg, Bahamas, the Cayman Islands, Chile and Uruguay.

* * *

As reported in the Troubled Company Reporter-Latin America on

Feb. 12, 2007, Fitch changed the outlook of Banco Itau Holding

Financiera S.A.'s 'BB+' foreign currency IDR rating to positive

from stable.

BANCO NACIONAL: OKs BRL7.30 Bil. Credit Line for Companhia Vale

---------------------------------------------------------------

Banco Nacional de Desenvolvimento Economico e Social has

authorized a BRL7.30 billion credit line for Companhia Vale do

Rio Doce.

According to Banco Nacional, the funds will be used to advance

Companhia Vale's 2008-12 investment program and for projects in

Brazil. Part of the resources will go to Companhia Vale's

corporate social responsibility initiatives.

Banco Nacional told Business News Americas that Companhia Vale

will be able to access the funds for five years.

About Companhia Vale

Headquartered in Rio de Janeiro, Brazil, Companhia Vale do Rio

Doce -- http://www.cvrd.com.br/-- engages primarily in mining

and logistics businesses. It engages in iron ore mining, pellet

production, manganese ore mining, and ferroalloy production, as

well as in the production of nonferrous minerals, such as

kaolin, potash, copper, and gold.

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.

BANCO NOSSA: To Buy Up to BRL100MM/Month Payroll Loans from BMG

---------------------------------------------------------------

Banco Nossa Caixa will buy up to BRL100 million per month in

payroll loans Banco BMG over the next 12 months from.

Business News Americas relates that according to the terms of

the accord between Banco Nossa and Banco BMG, the deal could be

worth as much as BRL1.20 billion in payroll loans.

According to BNamericas, Banco Nossa's Chief Executive Officer

Milton Luiz de Melo Santos said in March that the bank was

considering purchasing loans generated by other financial

institutions to expand its retail loan book up to 45% this year.

The report says that Banco Nossa increased loans to individuals

by 23.2% to BRL6.63 billion in 2007, compared to 2006, due to a

33.3% growth in payroll loans to Sao Paulo state workers. The

payroll loans totaled BRL3.49 billion.

BNamericas notes that Banco BMG's Chief Executive Officer

Ricardo Guimaraes said the bank was generating over

BRL600 million per month in new loans.

Banco BMG will increase lending at least 25% this year compared

to last year, which increased 44.5% to BRL12.5 billion,

BNamericas states.

Headquartered in Sao Paulo, Brazil, Banco Nossa Caixa SA --

http://www.nossacaixa.com.br/-- operates as a multiple bank

offering banking and financial services through commercial and

loan portfolios, including real estate and foreign exchange, as

well as administering credit cards. Through its subsidiary, it

operates with private pensions. Nossa Caixa uses demand, saving

and time deposits, which include judicial deposits, to fund its

operations. The main focus of Nossa Caixa is to attend

individuals, especially public employees and small and medium-

sized companies in Sao Paulo, as well as state and municipal

government agencies. As the official bank for the government of

the State of Sao Paulo, it administers the state's resources and

state lotteries and takes care of the payroll of the indirect

state administration and part of the direct administration. As

of Dec. 31, 2005, the Bank's network consisted of 2,579

attendance points in its distribution network.

* * *

In October 2007, Moody's Investors Service assigned a Ba2

foreign currency deposit rating to Banco Nossa Caixa, which is

constrained by Brazil's foreign currency deposit ceiling.

NOVELL INC: Augments Operations With PlateSpin Buyout Completion

----------------------------------------------------------------

Novell Inc. completed its acquisition of PlateSpin Ltd. The

company related that PlateSpin allows the movement of workloads

between physical and virtual environments regardless of platform

or operating system. These capabilities, combined with Novell's

systems management solutions, enable customers to fully leverage

their virtualization investments and reduce both costs and

server

sprawl in their data centers.

As reported in the Troubled Company Reporter on Feb. 28, 2008,

Novell Inc. entered into a definitive agreement to acquire

PlateSpin Ltd. for $205 million.

"The addition of PlateSpin to Novell's existing enterprise IT

management and Linux solutions will give customers the

capabilities they need to build their next generation data

center," Joe Wagner, senior vice president and general manager

of Novell(R) Systems and Resource Management, said. "With

solutions for data center consolidation, virtualization,

relocation, disaster recovery and ongoing optimization,

customers now have powerhouse technology to reduce cost,

minimize risk and create value across heterogeneous environments

with flexibility, interoperability and agility."

"We are excited to be joining the Novell organization and a

global team of people committed to the vision of optimizing the

data center," Stephen Pollack, founder and CEO of PlateSpin,

said. "We will continue to focus on the development of the

PlateSpin product line and look forward to the new synergies our

combined offerings will bring to customers."

With the closing of the acquisition, PlateSpin will become part

of the Novell Systems and Resource Management business unit and

continue to develop and market its solutions to the customer

base. This is another key step in Novell's strategy to help

customers integrate their mixed IT environments, allowing people

and technology to work as one.

About PlateSpin Ltd.

PlateSpin offers extensive solutions for the management of

heterogeneous workloads that encapsulate data, applications and

operating systems residing on a physical or virtual host. These

solutions improve the speed and quality of server consolidation,

data center relocation and disaster recovery.

About Novell Inc.

Headquartered in Waltham, Massachusetts, Novell Inc. (Nasdaq:

NOVL) -- http://www.novell.com/-- delivers infrastructure

software for the Open Enterprise. Novell provides desktop to

data

center operating systems based on Linux and the software

required

to secure and manage mixed IT environments.

The company has offices in Australia, Argentina, Austria,

Belgium, Brazil, China, Czech Republic, Finland, Germany, Hong

Kong, Hungary, India, Ireland, Japan, Luxembourg, Malaysia,

Netherlands, New Zealand, Norway, Philippines, Poland,

Singapore, South Korea, Spain, Sweden, Switzerland, Taiwan,

Thailand and United Kingdom.

* * *

Novell Inc. continues to carry Moody's Investors Service's 'B1'

subordinated debt rating, which was placed in September 1988.

REALOGY CORP: CFO Hull Comments on S&P's March Outlook Action

-------------------------------------------------------------

Standard & Poor's Ratings Services, on March 27, 2008, affirmed

Realogy Corp.'s “B” corporate rating, but revised its outlook

from “Stable” to “Negative.”

According to S&P credit analyst Emile Courtney, "[t]he outlook

revision reflects a significantly lower expectation for EBITDA

generation in 2008 than we had previously anticipated, as well

as the resultant narrowing of the EBITDA cushion in the

company's senior secured credit facilities leverage covenant[.]"

CFO Anthony E. Hull, as disclosed in the company's website,

however said that the S&P report does not explicitly mention

three key factors that are important to reiterate:

-- Realogy's interest cost in 2008 will be significantly

less than previously expected and 2007 pro forma levels.

-- Realogy's proactive cost savings and cash maximization

initiatives that have been successfully implemented

(including exit from the government at-risk business

that will free up US$50 million of cash this year) will

continue to enhance our ability to tap into our bank

debt revolver.

-- Due to the seasonality of the real estate market, first

quarter of any year is historically our slowest quarter

(not just 2008). As we are only one-quarter into the

year, the company has 85% to 90% of its EBITDA

opportunity ahead of it.

While the revised outlook was based primarily upon the

continuing downturn in the residential real estate market, the

S&P report concluded with the following astute statement:

“Even though a return to growth in sides and price metrics in

the industry could be at least one year away (in early 2009),

our expectation remains that Realogy will benefit meaningfully

in terms of growth in EBITDA and cash flow generation when the

cycle turns upward, and that credit measures would improve.”

About Realogy Corporation

Headquartered in Parsippany, New Jersey, Realogy Corporation

(NYSE: H)-- http://www.realogy.com/-- is a real estate

franchisor and a member of the S&P 500. The company has a

diversified business model that also includes real estate

brokerage, relocation, and title services. Realogy's world-

renowned brands and business units include CENTURY 21(R),

Coldwell Banker(R), Coldwell Banker Commercial(R), ERA(R),

Sotheby's International Realty(R), NRT Incorporated, Cartus, and

Title Resource Group. Realogy has more than 15,000 employees

worldwide. The company operates in Australia, Brazil and

France.

TAM: Sao Paulo/Milan Route Carries 131,000 Passengers in 1st Yr.

----------------------------------------------------------------

This week, TAM Linhas Aereas completes a year of operations to

Milan, Italy. The company's third direct destination in Europe,

this daily flight has carried more than 73.2 thousand passengers

on the Sao Paulo/Milan route and 58.6 thousand on the return

leg, with a 70% average load factor, in one year of operation.

"Our Milan flight has been integrated. It is a destination that

attracts tourism and business, as well as being an important

entry point into Europe," stated Vice-President of Planning and

Alliances, Paulo Castello Branco.

The flight uses MD-11 aircraft, with a carrying capacity of up

to 289 passengers in three classes (First, Business and

Economy).

One of the differences of this TAM flight is the in-flight

entertainment service for First and Business Classes. All video

and audio programming, as well as games, are available on a

small portable device known as a Personal Entertainment

Appliance (PEA). Programming includes 10 movies, three variety

channels, nine games, 100 music albums and various video clips.

Fares between Sao Paulo and Milan start at US$919 (round trip).

The flight leaves Guarulhos Airport -- SP for Milan at 7:10 p.m.

local time. The return flight leaves Malpensa Airport at 1:30

p.m. local time.

TAM S.A. -- http://www.tam.com.br/-- currently has business

agreements with the regional airlines Pantanal, Passaredo,

Total and Trip. As of Jan. 14, the daily flight on the Corumba

-- Campo Grande route in Mato Grosso do Sul began to be operated

by a partnership with Trip. With the expansion of the agreement

with NHT, TAM will now be serving 82 destinations in Brazil, 45

of which with its own flights. In addition, the company is

strengthening its presence in Rio Grande do Sul and Santa

Catarina.

* * *

On July 23, 2007, Fitch Ratings affirmed the 'BB' foreign

currency and local currency Issuer Default Ratings of TAM S.A.

Fitch has also affirmed the 'BB' rating of its US$300 million of

senior unsecured notes due 2017 as well as the company's

'A+(bra)' national scale rating and for its first debentures

issuance (BRL500 million). Fitch said the rating outlook is

stable.

UNIAO DE BANCOS: Will Establish Investment Bank

-----------------------------------------------

Uniao de Bancos Brasileiros SA will form investment bank

Unibanco Banco de Investimentos to make more money from initial

public offerings, Brazilian financial daily Valor Economico

reports.

According to Valor Economico notes that Unibanco Banco de

Investimentos will begin with BRL400 million in capital.

Business News Americas relates that Uniao de Bancos has hired

former BNDES Chief Eleazar de Carvalho Filho to be in charge of

distribution and former Credit Suisse employee Eduardo Gentil to

be responsible for business origination.

Headquartered in Sao Paulo, Brazil, Uniao de Bancos Brasileiros

SA -- http://www.unibanco.com/-- is a full-service financial

institution providing a range of financial products and services

to a diversified individual and corporate customer base

throughout Brazil. The company's businesses comprise segments:

Retail, Wholesale, Insurance and Pension Plans and Wealth

Management. Uniao de Bancos and its associated companies

FinInvest, LuizaCred, PontoCred and Tecban (Banco 24 Horas)

offer a network composed of 17,000 points of service. It also

counts on 7,580 automated teller machines and all 30 Hours'

products and services, including the telephone service and the

Internet banking. The company's international network consists

of branches in Nassau and the Cayman Islands; representatives

offices in New York; banking subsidiaries in Luxembourg, the

Cayman Islands and Paraguay; and a brokerage firm in New York --

Unibanco Securities Inc.

* * *

To date, Standard & Poor's Ratings Services rated Unibanco-Uniao

de Bancos Brasileiros SA's long-term foreign issuer credit

rating and local issuer credit rating at 'BB+'.

VALMONT INDUSTRIES: Revenue Growth Cues Moody's Rtng Lift to Ba1

----------------------------------------------------------------

Moody's upgraded the Corporate Family and Probability of Default

Ratings of Valmont Industries, Inc. to Ba1 from Ba2.

Concurrently, Moody's raised the senior unsecured credit

facility rating to Baa3 from Ba1 and raised the senior

subordinated notes rating to Ba2 from Ba3.

These rating actions acknowledge the solid organic revenue

growth and steady margin improvement achieved over several years

and since the ratings were placed on positive outlook, resulting

in operating performance that exceeded previous expectations.

The upgrade further reflects Moody's expectation that fiscal

policies will remain conservative and key credit metrics,

including leverage, will be maintained at levels appropriate for

the Ba1 rating category.

Further supporting the Ba1 Corporate Family Rating are Valmont's

leading market positions, low customer concentration and good

liquidity profile. Valmont's rating is constrained by a

relatively small revenue base for the rating category.

Additionally, approximately 75% of revenues is concentrated in

North America which, in Moody's opinion, together with size make

the business potentially vulnerable to macroeconomic and end-

market demand cyclicality in this region. Liquidity is expected

to be good over the next twelve months, as indicated by the

affirmation of the SGL-2 Speculative Grade Liquidity Rating.

Moody's took these rating actions:

-- US$150 million senior unsecured revolver due 2009, upgraded

to Baa3 (LGD3, 35%) from Ba1 (LGD3, 44%);

-- US$37 million senior unsecured term loan due 2009, upgraded

to Baa3 (LGD3, 35%) from Ba1 (LGD3, 44%);

-- US$150 million senior subordinated notes due 2014, upgraded

to Ba2 (LGD5, 81%) from Ba3 (LGD5, 82%);

-- Corporate Family Rating, upgraded to Ba1 from Ba2;

-- Probability of Default Rating, upgraded to Ba1 from Ba2;

-- Speculative Grade Liquidity Rating, affirmed SGL-2.

Valmont Industries, Inc. is a global producer of metal and

concrete pole and tower structures, mechanized irrigation

systems and coatings. Customers and end-users include state and

federal governments, contractors, utility and telecommunications

companies, manufacturers of commercial lighting fixtures and

large farms. Headquartered in Omaha, Nebraska, the company is

publicly held and reported revenues of US$1.5 billion for the

year ended Dec. 29, 2007. The company has operations in Brazil.

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

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

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

AAM EMERGING: Sets Final Shareholders Meeting for April 4

---------------------------------------------------------

AAM Emerging Managers Offshore, Ltd., will hold its final

shareholders' meeting on April 4, 2008, at 11:30 a.m. at the

office of the company.

These matters will be taken up during the meeting:

1) accounting of the winding-up process; and

2) authorizing the liquidators to retain the records

of the company for a period of five years from

the dissolution of the company, after which they

may be destroyed.

AAM Emerging's shareholders agreed on Feb. 22, 2008, to place

the company into voluntary liquidation under The Companies Law

(2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

John Cullinane and Derrie Boggess

c/o Walkers SPV Limited

Walker House, 87 Mary Street

George Town, Grand Cayman KY1-9002

Cayman Islands

CARBON TRADING: Will Hold Final Shareholders Meeting on April 4

---------------------------------------------------------------

Carbon Trading Fund Ltd. will hold its final shareholders'

meeting on April 4, 2008, at 10:30 a.m. at the registered office

of the company.

These matters will be taken up during the meeting:

1) accounting of the winding-up process; and

2) authorizing the liquidators to retain the records

of the company for a period of five years from

the dissolution of the company, after which they

may be destroyed.

Carbon Trading's shareholders agreed on Feb. 19, 2008, to place

the company into voluntary liquidation under The Companies Law

(2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

John Cullinane and Derrie Boggess

c/o Walkers SPV Limited

Walker House, 87 Mary Street

George Town, Grand Cayman KY1-9002

Cayman Islands

CARBON TRADING MASTER: Final Shareholders Meeting is on April 4

---------------------------------------------------------------

Carbon Trading Master Fund Ltd. will hold its final

shareholders' meeting on April 4, 2008, at 10:00 a.m. at the

office of the company.

These matters will be taken up during the meeting:

1) accounting of the winding-up process; and

2) authorizing the liquidators to retain the records

of the company for a period of five years from

the dissolution of the company, after which they

may be destroyed.

Carbon Trading's shareholders agreed on Feb. 22, 2008, to place

the company into voluntary liquidation under The Companies Law

(2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

John Cullinane and Derrie Boggess

c/o Walkers SPV Limited

Walker House, 87 Mary Street

George Town, Grand Cayman KY1-9002

Cayman Islands

CC CAYCO: Sets Final Shareholders Meeting for April 4

-----------------------------------------------------

CC Cayco Limited will hold its final shareholders' meeting on

April 4, 2008, at 9:00 a.m. at the office of the company.

These matters will be taken up during the meeting:

1) accounting of the winding-up process; and

2) authorizing the liquidators to retain the records

of the company for a period of six years from

the dissolution of the company, after which they

may be destroyed.

CC Cayco's shareholders agreed on Feb. 22, 2008, to place the

company into voluntary liquidation under The Companies Law (2004

Revision) of the Cayman Islands.

The liquidator can be reached at:

Richard L. Finlay

Attn: Krysten Lumsden

P.O. Box 2681, George Town

Grand Cayman, Cayman Islands

Telephone: (345) 945 3901

Fax: (345) 945 3902

CHEYNE GLOBAL: Sets Final Shareholders Meeting for April 4

----------------------------------------------------------

Cheyne Global Opportunities Fund Inc. will hold its final

shareholders' meeting on April 4, 2008, at 12:00 p.m. at the

office of the company.

These matters will be taken up during the meeting:

1) accounting of the winding-up process; and

2) authorizing the liquidators to retain the records

of the company for a period of five years from

the dissolution of the company, after which they

may be destroyed.

Cheyne Global's shareholders agreed on Feb. 22, 2008, to place

the company into voluntary liquidation under The Companies Law

(2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

John Cullinane and Derrie Boggess

c/o Walkers SPV Limited

Walker House, 87 Mary Street

George Town, Grand Cayman KY1-9002

Cayman Islands

FINANCIAL RISK: Sets Final Shareholders Meeting for April 4

-----------------------------------------------------------

Financial Risk Management Water Fund Limited will hold its final

shareholders' meeting on April 4, 2008, at 11:00 a.m. at the

office of the company.

These matters will be taken up during the meeting:

1) accounting of the winding-up process; and

2) authorizing the liquidators to retain the records

of the company for a period of five years from

the dissolution of the company, after which they

may be destroyed.

Financial Risk's shareholders agreed on Feb. 22, 2008, to place

the company into voluntary liquidation under The Companies Law

(2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

John Cullinane and Derrie Boggess

c/o Walkers SPV Limited

Walker House, 87 Mary Street

George Town, Grand Cayman KY1-9002

Cayman Islands

GLOBAL YACHT: Will Hold Final Shareholders Meeting on April 4

-------------------------------------------------------------

Global Yacht Ltd. will hold its final shareholders' meeting on

April 4, 2008, at 10:00 a.m. at 2306 SW 13th Street, 2nd Floor,

Gainesville, Florida 32608, U.S.A.

These matters will be taken up during the meeting:

1) accounting of the winding-up process; and

2) determining the manner in which the books,

accounts, and documentation of the company, and

of the liquidator should be disposed of.

Global Yacht's shareholders agreed on Feb. 22, 2008, to place

the company into voluntary liquidation under The Companies Law

(2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

S. Clark Butler

2306 SW 13th Street

2nd Floor Gainesville, FL 32608

Florida, U.S.A

Telephone: (+352) 372 6060

Fax: (+352) 372 7028

HIGHLAND SPECIAL: Proofs of Claim Filing Deadline is Tomorrow

-------------------------------------------------------------

Highland Special Opportunity Master Fund, Limited's creditors

have until April 4, 2008, to prove their claims to Richard

Fogerty and G. James Cleaver, the company's liquidators, 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.

Highland Special's shareholders agreed on Feb. 15, 2008, to

place the company into voluntary liquidation under The Companies

Law (2004 Revision) of the Cayman Islands. The shareholders

also passed a resolution to replace Simon Whicker and Kristen

Beighton of KPMG as the company's joint voluntary liquidators.

The liquidators can be reached at:

Richard Fogerty and G. James Cleaver

Attn: Chris Sharpe

Kroll (Cayman) Limited

4th Floor Bermuda House, Dr. Roy’s Drive

Grand Cayman, Cayman Islands

Telephone: +1 (345) 946-4015

Fax: +1 (345) 946-0082

NEW ORIENTAL: Will Hold Final Shareholders Meeting on April 4

-------------------------------------------------------------

New Oriental Gas Limited will hold its final shareholders'

meeting on April 4, 2008, at 10:00 a.m. at Jin Bao Plaza, No. 89

Jin Bao Road, Dong Cheng Dong District, Beijing 100005, China.

These matters will be taken up during the meeting:

1) accounting of the winding-up process; and

2) giving explanation thereof.

New Oriental's shareholders agreed on Dec. 27, 2007, to

place the company into voluntary liquidation under The Companies

Law (2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

Shen Jianwei

Corporate Filing Services Ltd.

P.O. Box 613, Grand Cayman KY1-1107

Cayman Islands

Telephone: (86-10) 8522 1133

Fax: (86-10) 8522 1313

PARMALAT SPA: Warrant Exercise Hikes Capital by EUR6.29 Million

--------------------------------------------------------------

Parmalat S.p.A. communicates that, following the allocation of

shares to creditors of the Parmalat Group, the subscribed and

fully paid up share capital has now been increased by

EUR6,289,038 to EUR1,667,496,728 from EUR1,661,207,690.

The share capital increase is due to the exercise of 6,289,038

warrants.

Share Allotment Status

Shares totaling 32,464,186 representing around 1.9% of the share

capital are still in a deposit account c/o Parmalat S.p.A., of

which:

* 13,369,205 or 0.8% of the share capital, registered in the

name of individually identified commercial creditors, are

still deposited in the intermediary account of Parmalat

S.p.A. centrally managed by Monte Titoli (compared with

13,388,617 shares as at Feb. 29, 2008); and

* 19,094,981 or 1.1% of the share capital registered in the

name of the Foundation, called Fondazione Creditori

Parmalat, of which:

-- 120,000 shares representing the initial share capital

of Parmalat S.p.A. (unchanged); and

-- 18,974,981 or 1.1% of the share capital that pertain to

currently undisclosed creditors (compared with

19,653,870 shares as at Feb. 29, 2008).

About Parmalat

Headquartered in Milan, Italy, Parmalat S.p.A.

-- http://www.parmalat.net/-- sells nameplate milk products

that can be stored at room temperature for months. It also has

about 40 brand product lines, which include yogurt, cheese,

butter, cakes and cookies, breads, pizza, snack foods and

vegetable sauces, soups and juices.

The company's U.S. operations filed for chapter 11 protection on

Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary

Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal &

Manges LLP, represent the Debtors. When the U.S. Debtors filed

for bankruptcy protection, they reported more than US$200

million in assets and debts. The U.S. Debtors emerged from

bankruptcy on April 13, 2005.

Parmalat S.p.A. and its Italian affiliates filed separate

petitions for Extraordinary Administration before the Italian

Ministry of Productive Activities and the Civil and Criminal

District Court of the City of Parma, Italy on Dec. 24, 2003.

Dr. Enrico Bondi was appointed Extraordinary Commissioner in

each of the cases. The Parma Court has declared the units

insolvent.

On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No.

04-14268, in the United States Bankruptcy Court for the Southern

District of New York.

Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat

Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and

Food Holdings are Cayman Island special-purpose vehicles

established by Parmalat S.p.A. The Finance Companies are under

separate winding up petitions before the Grand Court of the

Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll

(Cayman) Ltd. serve as Joint Provisional Liquidators in the

cases. On Jan. 20, 2004, the Liquidators filed Sec. 304

petition, Case No. 04-10362, in the United States Bankruptcy

Court for the Southern District of New York. In May 2006, the

Cayman Island Court appointed Messrs. MacRae and Cleaver as

Joint Official Liquidators. Gregory M. Petrick, Esq., at

Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq.,

at Janvey, Gordon, Herlands Randolph, represent the Finance

Companies in the Sec. 304 case.

The Honorable Robert D. Drain presides over the Parmalat

Debtors' U.S. cases. On June 21, 2007, the U.S. Court Granted

Parmalat Permanent Injunction.

SNOWBALL MULTI: Final Shareholders Meeting is on April 4

--------------------------------------------------------

Snowball Multi Manager FX Fund SPC will hold its final

shareholders' meeting on April 4, 2008, at 11:00 a.m. at Kroll

(Cayman) Limited, 4th Floor, Bermuda House, Dr. Roy’s Drive,

Grand Cayman, Cayman Islands, to lay accounts before the

meeting, showing how the winding up has been conducted and how

the property has been disposed of.

Snowball Multi's shareholders agreed on Feb. 22, 2008, to place

the company into voluntary liquidation under The Companies Law

(2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

Gordon I. Macrae

Attn: Hadley Chilton

Kroll (Cayman) Limited, 4th Floor

Bermuda House, P.O. Box 1102

Dr. Roy’s Drive, Grand Cayman KY1-1102

Cayman Islands

Telephone: (345) 946-0081

Fax: (345) 946-0082

TGM CURRENCY: Sets Final Shareholders Meeting for April 4

---------------------------------------------------------

TGM Currency Fund will hold its final shareholders'

meeting on April 4, 2008, at 9:00 a.m. at the registered office

of the company.

These matters will be taken up during the meeting:

1) accounting of the winding-up process; and

2) authorizing the liquidators to retain the records

of the company for a period of five years from

the dissolution of the company, after which they

may be destroyed.

TGM Currency's shareholders agreed on Feb. 19, 2008, to place

the company into voluntary liquidation under The Companies Law

(2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

John Cullinane and Derrie Boggess

c/o Walkers SPV Limited

Walker House, 87 Mary Street

George Town, Grand Cayman KY1-9002

Cayman Islands

=========

C H I L E

=========

QUEBECOR WORLD: Jefferies & Co. as Committee Bankers Approved

-------------------------------------------------------------

The U.S. Bankruptcy Court for the Southern District of New York

authorized the Official Committee of Unsecured Creditors in

Qubebecor World Inc.'s cases to retain Jefferies & Company,

Inc., as its investment bankers, on an interim basis, nunc pro

tunc to Feb. 5, 2008.

Further objections must be filed by April 10, 2008. Absent

timely filed objections, the application will be approved on a

final basis, without further hearing. The Court will consider

all objections, if any, at a hearing scheduled for

April 17, 2008.

The Office of the United States Trustee retains the right to

object to any interim or final fee application filed by

Jefferies on any grounds provided for under the Bankruptcy Code,

the Bankruptcy Rules, or any Local Rules or orders of the Court.

The Debtors and their estates will be bound by the

indemnification, contribution and exculpations provisions of the

engagement letter dated February 5, 2008, between Jefferies and

the Creditors Committee. The Debtors will indemnify, defend and

hold harmless Jefferies and its affiliates, and its members,

provided that in no event will the firm be indemnified or

receive contribution in the case of bad-faith, self-dealing,

breach of fiduciary duty, if any, gross negligence or willful

misconduct.

About Quebecor World

Based in Montreal, Quebec, Quebecor World Inc. (TSX: IQW) (NYSE:

IQW), -- http://www.quebecorworldinc.com/-- provides market

solutions, including marketing and advertising activities, well

as print solutions to retailers, branded goods companies,

catalogers and to publishers of magazines, books and other

printed media. It has 127 printing and related facilities

located in North America, Europe, Latin America and Asia. In

the United States, it has 82 facilities in 30 states, and is

engaged in the printing of books, magazines, directories, retail

inserts, catalogs and direct mail. In Canada it has 17

facilities in five provinces, through which it offers a mix of

printed products and related value-added services to the

Canadian market and internationally.

The company has operations in Mexico, Brazil, Colombia, Chile,

Peru, Argentina and the British Virgin Islands.

Quebecor World and 53 of its subsidiaries, including those in

Canada, filed a petition under the Companies' Creditors

Arrangement Act before the Superior Court of Quebec, Commercial

Division, in Montreal, Canada, on Jan. 20, 2008. The Honorable

Justice Robert Mongeon oversees the CCAA case. Francois-David

Pare, Esq., at Ogilvy Renault, LLP, represents the Company in

the CCAA case. Ernst & Young Inc. was appointed as Monitor.

On Jan. 21, 2008, Quebecor World (USA) Inc., its U.S.

subsidiary, along with other U.S. affiliates, filed for chapter

11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No. 08-

10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP

represents the Debtors in their restructuring efforts. The

Official Committee of Unsecured Creditors is represented by Akin

Gump Strauss Hauer & Feld LLP.

Based in Corby, Northamptonshire, Quebecor World PLC --

http://www.quebecorworldplc.com/-- is the U.K. subsidiary of

Quebecor World Inc. that specializes in web offset magazines,

catalogues and specialty print products for marketing and

advertising campaigns. The company employs around 290 people.

Quebecor PLC was placed into administration with Ian Best and

David Duggins of Ernst & Young LLP appointed as joint

administrators effective Jan. 28, 2008.

As of Sept. 30, 2007, Quebecor World's unaudited consolidated

balance sheet showed total assets of US$5,554,900,000, total

liabilities of US$3,964,800,000, preferred shares of

US$175,900,000, and total shareholders' equity of

US$1,414,200,000.

The company has until May 20, 2008, to file a plan of

reorganization in the Chapter 11 case. The Debtors' CCAA stay

has been extended to May 12, 2008. (Quebecor World Bankruptcy

News, Issue No. 10; Bankruptcy Creditors' Service, Inc.,

http://bankrupt.com/newsstand/or 215/945-7000)

* * *

As reported in the Troubled Company Reporter on Feb. 13, 2008,

Moody's Investors Service assigned a Ba2 rating to the

US$400 million super priority senior secured revolving term loan

facility of Quebecor World Inc. as a Debtor-in-Possession. The

related US$600 million super priority senior secured term loan

was rated Ba3 (together, the DIP facilities). The RTL's better

asset value coverage relative to the TL accounts for the

ratings' differential.

QUEBECOR WORLD: Kurtzman Carson Hiring as Committee Agent Okayed

----------------------------------------------------------------

The Official Committee of Unsecured Creditors of Quebecor World

Inc. and its affiliates obtained the U.S. Bankruptcy Court for

the Southern District of New York's authority to retain Kurtzman

Carson Consultants, LLC, as its communications agent, nunc pro

tunc to Feb. 21, 2008.

As reported in the Troubled Company Reporter on March 28, 2008,

according to Madeleine Fequeire, director of Abitibi-

Consolidated Sales Corp. and co-chairperson of the Committee,

the Committee seeks to employ Kurtman Carson in compliance to

its obligation under Section 1102(b)(3) of the Bankruptcy Code.

About Quebecor World

Based in Montreal, Quebec, Quebecor World Inc. (TSX: IQW) (NYSE:

IQW), -- http://www.quebecorworldinc.com/-- provides market

solutions, including marketing and advertising activities, well

as print solutions to retailers, branded goods companies,

catalogers and to publishers of magazines, books and other

printed media. It has 127 printing and related facilities

located in North America, Europe, Latin America and Asia. In

the United States, it has 82 facilities in 30 states, and is

engaged in the printing of books, magazines, directories, retail

inserts, catalogs and direct mail. In Canada it has 17

facilities in five provinces, through which it offers a mix of

printed products and related value-added services to the

Canadian market and internationally.

The company has operations in Mexico, Brazil, Colombia, Chile,

Peru, Argentina and the British Virgin Islands.

Quebecor World and 53 of its subsidiaries, including those in

Canada, filed a petition under the Companies' Creditors

Arrangement Act before the Superior Court of Quebec, Commercial

Division, in Montreal, Canada, on Jan. 20, 2008. The Honorable

Justice Robert Mongeon oversees the CCAA case. Francois-David

Pare, Esq., at Ogilvy Renault, LLP, represents the Company in

the CCAA case. Ernst & Young Inc. was appointed as Monitor.

On Jan. 21, 2008, Quebecor World (USA) Inc., its U.S.

subsidiary, along with other U.S. affiliates, filed for chapter

11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No. 08-

10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP

represents the Debtors in their restructuring efforts. The

Official Committee of Unsecured Creditors is represented by Akin

Gump Strauss Hauer & Feld LLP.

Based in Corby, Northamptonshire, Quebecor World PLC --

http://www.quebecorworldplc.com/-- is the U.K. subsidiary of

Quebecor World Inc. that specializes in web offset magazines,

catalogues and specialty print products for marketing and

advertising campaigns. The company employs around 290 people.

Quebecor PLC was placed into administration with Ian Best and

David Duggins of Ernst & Young LLP appointed as joint

administrators effective Jan. 28, 2008.

As of Sept. 30, 2007, Quebecor World's unaudited consolidated

balance sheet showed total assets of US$5,554,900,000, total

liabilities of US$3,964,800,000, preferred shares of

US$175,900,000, and total shareholders' equity of

US$1,414,200,000.

The company has until May 20, 2008, to file a plan of

reorganization in the Chapter 11 case. The Debtors' CCAA stay

has been extended to May 12, 2008. (Quebecor World Bankruptcy

News, Issue No. 10; Bankruptcy Creditors' Service, Inc.,

http://bankrupt.com/newsstand/or 215/945-7000)

* * *

As reported in the Troubled Company Reporter on Feb. 13, 2008,

Moody's Investors Service assigned a Ba2 rating to the

US$400 million super priority senior secured revolving term loan

facility of Quebecor World Inc. as a Debtor-in-Possession. The

related US$600 million super priority senior secured term loan

was rated Ba3 (together, the DIP facilities). The RTL's better

asset value coverage relative to the TL accounts for the

ratings' differential.

QUEBECOR WORLD: Mesirow Hiring as Panel Financial Advisor Okayed

----------------------------------------------------------------

The U.S. Bankruptcy Court for the Southern District of New York

authorized the Official Committee of Unsecured Creditors in

Qubebecor World Inc.'s cases to retain Mesirow Financial

Consulting, LLC, as its financial advisors, on an interim basis,

effective Feb. 1, 2008.

Objections to Mesirow's retention are due April 10, 2008.

Absent timely filed objections, or if all objections are

resolved, the application will be approved on a final basis,

without further hearing. The Court will consider all unresolved

objections at a hearing scheduled for April 17, 2008.

On a final basis, the Court authorized Mesirow to receive

compensation and reimbursement of expenses, which in will not be

subject to challenge except under the standard of review set

forth in Section 328(a) of the Bankruptcy Code.

The Office of the United States Trustee retains the right to

object to any interim or final fee application filed by Mesirow

on any grounds provided for under the Bankruptcy Code, the

Bankruptcy Rules, or any Local Rules or orders of the Court.

The Debtors and their estates will not indemnify Mesirow or its

members for any acts of bad-faith, self-dealing, breach of

fiduciary duty, if any, gross negligence or willful misconduct.

About Quebecor World

Based in Montreal, Quebec, Quebecor World Inc. (TSX: IQW) (NYSE:

IQW), -- http://www.quebecorworldinc.com/-- provides market

solutions, including marketing and advertising activities, well

as print solutions to retailers, branded goods companies,

catalogers and to publishers of magazines, books and other

printed media. It has 127 printing and related facilities

located in North America, Europe, Latin America and Asia. In

the United States, it has 82 facilities in 30 states, and is

engaged in the printing of books, magazines, directories, retail

inserts, catalogs and direct mail. In Canada it has 17

facilities in five provinces, through which it offers a mix of

printed products and related value-added services to the

Canadian market and internationally.

The company has operations in Mexico, Brazil, Colombia, Chile,

Peru, Argentina and the British Virgin Islands.

Quebecor World and 53 of its subsidiaries, including those in

Canada, filed a petition under the Companies' Creditors

Arrangement Act before the Superior Court of Quebec, Commercial

Division, in Montreal, Canada, on Jan. 20, 2008. The Honorable

Justice Robert Mongeon oversees the CCAA case. Francois-David

Pare, Esq., at Ogilvy Renault, LLP, represents the Company in

the CCAA case. Ernst & Young Inc. was appointed as Monitor.

On Jan. 21, 2008, Quebecor World (USA) Inc., its U.S.

subsidiary, along with other U.S. affiliates, filed for chapter

11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No. 08-

10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP

represents the Debtors in their restructuring efforts. The

Official Committee of Unsecured Creditors is represented by Akin

Gump Strauss Hauer & Feld LLP.

Based in Corby, Northamptonshire, Quebecor World PLC --

http://www.quebecorworldplc.com/-- is the U.K. subsidiary of

Quebecor World Inc. that specializes in web offset magazines,

catalogues and specialty print products for marketing and

advertising campaigns. The company employs around 290 people.

Quebecor PLC was placed into administration with Ian Best and

David Duggins of Ernst & Young LLP appointed as joint

administrators effective Jan. 28, 2008.

As of Sept. 30, 2007, Quebecor World's unaudited consolidated

balance sheet showed total assets of US$5,554,900,000, total

liabilities of US$3,964,800,000, preferred shares of

US$175,900,000, and total shareholders' equity of

US$1,414,200,000.

The company has until May 20, 2008, to file a plan of

reorganization in the Chapter 11 case. The Debtors' CCAA stay

has been extended to May 12, 2008. (Quebecor World Bankruptcy

News, Issue No. 10; Bankruptcy Creditors' Service, Inc.,

http://bankrupt.com/newsstand/or 215/945-7000)

* * *

As reported in the Troubled Company Reporter on Feb. 13, 2008,

Moody's Investors Service assigned a Ba2 rating to the

US$400 million super priority senior secured revolving term loan

facility of Quebecor World Inc. as a Debtor-in-Possession. The

related US$600 million super priority senior secured term loan

was rated Ba3 (together, the DIP facilities). The RTL's better

asset value coverage relative to the TL accounts for the

ratings' differential.

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

C O S T A R I C A

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

CINEMARK HOLDINGS: Elects Steven P. Rosenberg to Board

------------------------------------------------------

Cinemark Holdings, Inc. has elected Steven P. Rosenberg to the

company's Board effective as of April 1, 2008, thereby

increasing the size of the Board to ten members. Mr. Rosenberg

has also been appointed to the Audit Committee, which

appointment is effective April 15, 2008.

Mr. Rosenberg is the President of SPR Ventures Inc., a private

investment firm he founded in 1997, and President of SPR

Packaging LLC, a manufacturer of flexible packaging. From 1992

until 1997, Mr. Rosenberg was the President of the Arrow

division of ConAgra, Inc., a leading manufacturer of grocery

products. Mr. Rosenberg was also a founding investor of

Packaged Ice, a leading manufacturer of industrial and consumer

ice in 1992. Mr. Rosenberg currently serves on the board of

directors of Texas Capital Bancshares, Inc. and PRG Schultz

International, Inc.

"We are very pleased that Steven has joined our Board," said

Cinemark’s Chief Executive Officer, Alan Stock. "We are certain

that he will be a strong addition to the Board and the Audit

Committee, and that his background and broad experience will be

an asset to Cinemark."

Cinemark Holdings, Inc. -- http://www.cinemark.com/-- a leader

in the theatre exhibition industry, operates 395 theaters and

4,479 screens in 37 states in the United States and

internationally in 13 countries, including Argentina, Brazil,

Chile, Colombia, Costa Rica, Ecuador, El Salvador, Honduras,

Mexico, Nicaragua, Panama, Peru and Taiwan.

* * *

As reported in the Troubled Company Reporter-Latin America on

Dec. 14, 2007, Standard & Poor's Rating Services affirmed its

'B' corporate credit rating on Cinemark Holdings Inc. and

subsidiary Cinemark Inc., which S&P analyzed on a consolidated

basis. At the same time, S&P removed the ratings from

CreditWatch with positive implications, where they were placed

on May 17, 2007. S&P said the outlook is positive.

US AIRWAYS: Court of Appeals Upholds Ruling on R. Bosiger's Suit

----------------------------------------------------------------

The United States Court of Appeals for the Fourth Circuit

affirmed the ruling of the United States District Court for the

Eastern District of Virginia, at Alexandria, dismissing Edwin

Perrow Bosiger, Jr.'s complaint that he was not notified of the

claims bar date in US Airways Group Inc.'s case. Mr. Bosiger

previously asserted he was not able to file a timely claim

asserting his pension benefits due to the non-notification.

Judges James Harvie Wilkinson III, Diana Gribbon Motz and Kathy

M. Flanagan comprised the panel reviewing the Appeal.

Mr. Bosiger brought a suit in the District Court six months

after USAir II's emergence from bankruptcy, contending that US

Airways Inc. had improperly terminated his pension during USAir

I's Bankruptcy.

US Airways sought and obtained the Bankruptcy Court's authority

to restructure its pilot pension obligations so that it can meet

conditions in securing the financing it needed to emerge from

Chapter 11.

The retired pilots asked the District Court to restore their old

pension benefits. But since the retired pilots had neglected to

have the termination and reorganization orders stayed, and since

the orders had been implemented and relied on by third parties,

the District Court held that the suit was equitably moot.

Mr. Bosiger was provided with the general bar date and certain

administrative and rejection damage claims bar date notices, but

did not file a claim during USAir II's Bankruptcy. Mr. Bosiger

instead chose to bring a suit against US Airways in the United

States District Court for the Eastern District of Virginia. The

District Court dismissed the suit on the grounds that US Airways

had properly terminated a Non-Qualified Plan Top Hat Retirement

Plan, and that Mr. Bosiger failed to file a proof of claim in

USAir II's Bankruptcy Cases.

Judge Wilkinson, among others, says:

-- the principal purpose of bankruptcy is straightforward: to

grant a fresh start to the honest but unfortunate debtor;

-- unwinding the finality of bankruptcy upsets not only the

expectations of the creditors who actually do participate

in the bankruptcy proceedings, but also the reliance

interests of the creditors who have advanced funds based on

the new capital structure laid out in the reorganization

plan; and

-- Mr. Bosiger's general denial of receiving bar dates notices

does not constitute the strong evidence needed to overcome

the presumption of receipt.

"If we were to hold that [Mr.] Bosiger's general denial was

sufficient, it would make it discernibly more difficult for any

court to grant summary judgment in any case where proper notice

is required. The result would be to prolong and undercut the

bankruptcy process by civil actions on the part of creditors who

failed to pursue their claims when it was timely and appropriate

for them to do so. The District Court was right to recognize

this danger, and its decision is affirmed. . . . Given the

tentative nature of the claims put forward by Bosiger's counsel,

we accord little weight to the argument that Bosiger's notice

was mailed to the wrong address. At the very least, the

speculative nature of the claims demonstrate that they do not

offer sufficient evidence that Bosiger did not receive his

notice letters," Judge Wilkinson says.

A full-text copy of Judge Wilkinson III, et al.'s Opinion is

available for free at:

http://bankrupt.com/misc/USAirCourtofAppealsOpinion.pdf

About US Airways

Based in Tempe, Arizona, US Airways Group Inc.'s (NYSE: LCC) -

http://www.usairways.com/-- primary business activity is the

ownership of the common stock of US Airways, Inc., Allegheny

Airlines, Inc., Piedmont Airlines, Inc., PSA Airlines, Inc.,

MidAtlantic Airways, Inc., US Airways Leasing and Sales, Inc.,

Material Services Company, Inc., and Airways Assurance Limited,

LLC.

US Airways has operations in Japan, Australia, China, Costa

Rica, Philippines, and Spain, among others.

Under a Chapter 11 plan declared effective on March 31, 2003,

USAir emerged from bankruptcy with the Retirement Systems of

Alabama taking a 40% equity stake in the deleveraged carrier in

exchange for US$240 million infusion of new capital.

US Airways and its subsidiaries filed another chapter 11

petition on Sept. 12, 2004 (Bankr. E.D. Va. Case No. 04-13820).

Brian P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J.

Canning, Esq., at Arnold & Porter LLP, and Lawrence E. Rifken,

Esq., and Douglas M. Foley, Esq., at McGuireWoods LLP, represent

the Debtors in their restructuring efforts. In the Company's

second bankruptcy filing, it lists US$8,805,972,000 in total

assets and US$8,702,437,000 in total debts.

The Debtors' Chapter 11 plan for its second bankruptcy filing

became effective on Sept. 27, 2005. The Debtors completed their

merger with America West on the same date. (US Airways

Bankruptcy News, Issue No. 157; Bankruptcy Creditors' Service,

Inc., http://bankrupt.com/newsstand/or 215/945-7000).

* * *

As reported in the Troubled Company Reporter on March 26, 2008,

Standard & Poor's Ratings Services revised its outlook on US

Airways Group Inc. to stable from positive. S&P has affirmed

all ratings, including the 'B-' long-term corporate credit

rating.

US AIRWAYS: To Settle MD Aviation Claim by Paying US$11,500,000

---------------------------------------------------------------

US Airways Group Inc. and The Maryland Aviation Administration

filed with the U.S. Bankruptcy Court for the Eastern District of

Virginia:

Status Amount

Claim No. Debtor Asserted Asserted

--------- ------ -------- --------

5063 US Airways, Inc. unsecured US$413,046

priority 23,343,868

----------

total 23,756,914

5064 Piedmont Airlines, Inc. unsecured 98,462

priority 23,343,868

----------

total 24,442,330

The Maryland Department of the Environment filed:

Status Amount

Claim No. Debtor Asserted Asserted

--------- ------ -------- --------

5066 US Airways, Inc. unsecured US$23,343,868

5083 Piedmont Airlines, Inc. unsecured 23,343,868

The Debtors have established a reserve under Claim No. 5083, to

be used for distributions for any of the MAA environmental

claims that are allowed.

MDE transferred Claim Nos. 5066 and 5083 to MAA.

To resolve their dispute, the parties agreed that:

1. Claim Nos. 5064, 5066 and 5083 are disallowed in their

entirety;

2. Claim No. 5063 is reclassified, reduced and allowed as a

Class USAI-9 or General Unsecured Claim under the Debtors'

Joint Plan of Reorganization in the compromised amount of

$11,500,000, in full satisfaction of MAA's environmental

claims against the Debtors;

3. The Stipulation is without prejudice to any claims or

causes of action that MAA or its assignor, MDE, may have

against any third parties; and

4. The Stipulation resolves all remaining claims of MDE and

MAA against the Debtors.

The Stipulation is deemed effective without further Court order.

About US Airways

Based in Tempe, Arizona, US Airways Group Inc.'s (NYSE: LCC) -

http://www.usairways.com/-- primary business activity is the

ownership of the common stock of US Airways, Inc., Allegheny

Airlines, Inc., Piedmont Airlines, Inc., PSA Airlines, Inc.,

MidAtlantic Airways, Inc., US Airways Leasing and Sales, Inc.,

Material Services Company, Inc., and Airways Assurance Limited,

LLC.

US Airways has operations in Japan, Australia, China, Costa

Rica, Philippines, and Spain, among others.

Under a Chapter 11 plan declared effective on March 31, 2003,

USAir emerged from bankruptcy with the Retirement Systems of

Alabama taking a 40% equity stake in the deleveraged carrier in

exchange for US$240 million infusion of new capital.

US Airways and its subsidiaries filed another chapter 11

petition on Sept. 12, 2004 (Bankr. E.D. Va. Case No. 04-13820).

Brian P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J.

Canning, Esq., at Arnold & Porter LLP, and Lawrence E. Rifken,

Esq., and Douglas M. Foley, Esq., at McGuireWoods LLP, represent

the Debtors in their restructuring efforts. In the Company's

second bankruptcy filing, it lists US$8,805,972,000 in total

assets and US$8,702,437,000 in total debts.

The Debtors' Chapter 11 plan for its second bankruptcy filing

became effective on Sept. 27, 2005. The Debtors completed their

merger with America West on the same date. (US Airways

Bankruptcy News, Issue No. 157; Bankruptcy Creditors' Service,

Inc., http://bankrupt.com/newsstand/or 215/945-7000).

* * *

As reported in the Troubled Company Reporter on March 26, 2008,

Standard & Poor's Ratings Services revised its outlook on US

Airways Group Inc. to stable from positive. S&P has affirmed

all ratings, including the 'B-' long-term corporate credit

rating.

US AIRWAYS: R. Thomas Demands Retirement Benefits Continued

-----------------------------------------------------------

Roger N. Thomas asks the U.S. Bankruptcy Court for the Eastern

District of Virginia to:

-- deny US Airways Group Inc.' request to disallow his claim;

-- grant his previously vested retirement benefits; and

-- direct all the Debtors and their affiliates to continuously

pay him the benefits.

Mr. Thomas asserts that he was a known creditor of Piedmont

Airlines, Inc. He wrote Piedmont's in-house retirement

administrator on Aug. 12, 2002, to ask for documents so he may

begin estimating his options in the pension plan, and convey his

expectations for travel and social security supplement benefits.

He says US Airways, Inc.'s Benefits Coordinator Dianne Green

answered his letter on August 20, and acknowledged his pension

fund claim but disagreed he had rights to any other benefit. He

further says that he, to his knowledge and belief, is the first

and only person to have been awarded cash settlement and

retirement benefits in any grievance procedure with Henson

Aviation, Inc., or Piedmont.

Piedmont assured that the retirement benefits would not be

affected in any way by the Debtors' first bankruptcy cases, Mr.

Thomas relates. Ms. Green reassured him this; that is why,

according to Mr. Thomas, he felt he did not need to initiate a

filing as a creditor.

Mr. Thomas asserts that the USAir I Bankruptcy Cases and its bar

date should not reduce his vested retirement interest. He

contends that the retired Piedmont pilots have received their

full retirement package including travel, retirement plan and

insurance -- without break and without reduction -- since he

left the company, until now. According to him, the retirement

plan contractually includes both the pension benefit and the

social security supplement benefit. In his case, Mr. Thomas

says the Debtors define "Retirement Plan" as a monthly pension

only, further eroding his retirement interest.

The Debtors are using their own tardiness as a means to reduce

his pension, Mr. Thomas says. He also adds that the grievance

settlement states that his release of Piedmont from claims

arising from his employment or cessation of employment from the

company is "made without out prejudice to and does not serve to

bar any claims arising from his previously vested retirement

interest." Mr. Thomas asserts he is 100% vested and, thus, is

entitled to all retirement benefits listed in the pilot

contract.

R. Thomas' Request

Mr. Thomas asks the Court to direct the Debtors to grant all

his vested retirement benefits including all the contractual

obligations for retirement contained in the General, Retirement,

and Insurance headings of the agreement between Henson Aviation,

Inc., and its pilots as represented by the Airline Pilots

Association, signed Nov. 30, 1989, and side letters.

Mr. Thomas also asks the Court to direct the Debtors to use, in

defining and calculating retirement benefits for his pension,

certain contract and side letters in effect when his employment

was involuntarily terminated on April 5, 1995, and Grievance

Settlement signed on March 21, 1996, between him and Piedmont.

According to him, these includes a normal retirement age of 60

and a calculation of his final average earnings as stated in the

agreement between Piedmont Airlines, Inc., and its pilots as

represented by the ALPA, signed May 16, 1994, with its

Retirement Plan for Pilots and side letters, then current.

Mr. Thomas asserts that according to the Settlement, he is

entitled to his "previously vested retirement interest." This

is the retirement interest he says is the one he claims. He

further asserts that his claim does not "significantly exceed,"

as the Debtors argue, that to which he is entitled. His claim

is entirely supported in writing in contracts that apply to him,

he says.

According to Mr. Thomas, the Debtors have added the words

"accrued" and "in the Retirement Plan" which narrows the meaning

of the Settlement to only the pension portion of the retirement

benefits. He contends the Debtors have mixed disputed with

undisputed items in their response and cross-motion for summary

judgment against his claim. The Debtors base their statements

on the wrong contract, specifically the 2001 Piedmont contract

including an amendment signed only in December 2007, he says.

Neither the contract nor tis amendment applies to him, he adds.

The contracts that have bearing on the matter, according to Mr.

Thomas, are:

1. the Agreement between Henson Aviation, Inc., and its pilots

as represented by the Air Line Pilots Association, signed

November 30, 1989, and side letters; and

2. the Agreement between Piedmont Airlines, Inc., and its

pilots as represented by the Air Line Pilots Association,

signed May 16, 1994, with its Retirement Plan for Pilots

and side letters.

Mr. Thomas asserts that the Grievance Settlement acknowledges

his involuntary termination before the age of 60 and by

affirming his right to his "vested retirement interest," the

Settlement implicitly treats him as a person who worked until

the age of 60. He further asserts this is the point of the

Settlement and it entirely does not indicate otherwise.

The Contracts do not require him to "formally request" his

pension to begin, Mr. Thomas contends. Instead, the Contracts

make it clear that the responsibility lies with the Debtors to

begin payments on the normal retirement date, he says.

Mr. Thomas further notes that the United States Postal Service

has acknowledged that he did not know of the existence of a

package of payment option materials. According to him, the

Debtors say they are not delinquent because the package was

returned to them by the USPS.

Debtors Answer Back

The Debtors argue that the only benefits and claims that Mr.

Thomas would be entitled to receive were those under the

Retirement Plan, not from the Reorganized Debtors. The Debtors

add that they were "under no obligation to treat every

discharged or furloughed employee as a potential creditor on the

off chance that the employee might assert the claim."

Douglas M. Foley, Esq., at McGuirewoods LLP, in Norfolk,

Virginia, contends that notice by publication was

constitutionally sufficient as to Mr. Thomas because he was not

a "known" creditor.

Mr. Foley asserts that whether Mr. Thomas was entitled to

receive actual notice of the November 4, 2002 bar date for

filing non-governmental claims in the Debtors' first Chapter 11

Cases or the notice of the commencement of the Debtors' first

Chapter 11 Cases is only relevant if he held any "claims"

against the Debtors. However, Mr. Thomas "forever and finally

released, settled, waived, discharged, acquitted and reached

full accord and satisfaction of all claims, demands, causes of

action, and actions arising or existing up to the date of

execution of the Settlement Agreement, except any claims arising

from his previously vested retirement interest." Accordingly,

Mr. Foley adds, Mr. Thomas is not entitled to any other and

further relief except those that were previously vested in the

Retirement Plan -- nothing more and nothing less.

The Debtors, thus, ask the Court to enter an order disallowing

Mr. Thomas' claim.

About US Airways

Based in Tempe, Arizona, US Airways Group Inc.'s (NYSE: LCC) -

http://www.usairways.com/-- primary business activity is the

ownership of the common stock of US Airways, Inc., Allegheny

Airlines, Inc., Piedmont Airlines, Inc., PSA Airlines, Inc.,

MidAtlantic Airways, Inc., US Airways Leasing and Sales, Inc.,

Material Services Company, Inc., and Airways Assurance Limited,

LLC.

US Airways has operations in Japan, Australia, China, Costa

Rica, Philippines, and Spain, among others.

Under a Chapter 11 plan declared effective on March 31, 2003,

USAir emerged from bankruptcy with the Retirement Systems of

Alabama taking a 40% equity stake in the deleveraged carrier in

exchange for US$240 million infusion of new capital.

US Airways and its subsidiaries filed another chapter 11

petition on Sept. 12, 2004 (Bankr. E.D. Va. Case No. 04-13820).

Brian P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J.

Canning, Esq., at Arnold & Porter LLP, and Lawrence E. Rifken,

Esq., and Douglas M. Foley, Esq., at McGuireWoods LLP, represent

the Debtors in their restructuring efforts. In the Company's

second bankruptcy filing, it lists US$8,805,972,000 in total

assets and US$8,702,437,000 in total debts.

The Debtors' Chapter 11 plan for its second bankruptcy filing

became effective on Sept. 27, 2005. The Debtors completed their

merger with America West on the same date. (US Airways

Bankruptcy News, Issue No. 157; Bankruptcy Creditors' Service,

Inc., http://bankrupt.com/newsstand/or 215/945-7000).

* * *

As reported in the Troubled Company Reporter on March 26, 2008,

Standard & Poor's Ratings Services revised its outlook on US

Airways Group Inc. to stable from positive. S&P has affirmed

all ratings, including the 'B-' long-term corporate credit

rating.

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

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

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

CAP CANA: Land Court Judges Issue Arrest Warrant for R. Hazoury

---------------------------------------------------------------

Judges Rafael Ciprian, Marino Alvarez and Luz Ubinas at the

Superior Land Court of the Dominican Republic have issued an

arrest warrant against Cap Cana President Ricardo Hazoury for

contempt of court, Diario Digital reports.

According to Diario Digital, Mr. Hazoury didn't attend a court

hearing last Monday on alleged real estate fraud charges filed

by the proprietor of several improvements. The case involves

the "unauthorized mortgage of a property" of US$40 million.

The judges placed an "impediment exit" against Mr. Hazoury,

Diario Digital states.

Cap Cana is located on the easternmost tip of the Dominican

Republic, and is a few minutes drive from Punta Cana

International Airport, which receives nonstop flights from large

metropolitan centers in Europe, Canada and the USA. When fully

developed, Cap Cana is expected to have six championship golf

courses (three of which will be Nicklaus Signature courses, one

of which was recently completed); one of the largest inland

marinas in the Caribbean; several luxury hotels; over 10,000

housing units, including estate homes, villas and condominiums;

numerous sports facilities, including golf, beach and yacht

clubs; and a variety of high-end shops, restaurants, spas and

entertainment complexes. Plans also include the development of

a large ecological preserve.

* * *

As reported in the Troubled Company Reporter-Latin America on

Nov. 6, 2007, Fitch Ratings affirmed the 'B' rating on Cap Cana,

S.A.'s US$250 million senior secured notes. In addition, Fitch

assigned a preliminary rating of 'B-' to the expected issuance

of US$500 million in additional senior secured notes.

DELTA AIR: Launches Food-for-Purchase Program in Caribbean

----------------------------------------------------------

Delta Air Lines Inc. has launched its food-for-purchase program

in select flights between the U.S. and beach destinations in the

Caribbean and Latin America, Dominican Today reports.

Dominican Today relates that Delta Air started the food-for-

purchase menu in September 2007 "on coast-to-coast mainline

flights between New York John F. Kennedy International Airport

and Los Angeles, San Diego, San Francisco and Seattle."

Delta Air Lines told Dominican Today it will have its food-for-

purchase program on all flights within the U.S. of 750 miles or

more. As part of its plan to try reaping more revenue from

added services, Delta Air will offer more "designer US$7 and

US$8 meals," Dominican Today notes.

Based in Atlanta, Georgia, Delta Air Lines Inc. (NYSE:DAL) --

http://www.delta.com/-- is the world's second-largest airline

in terms of passengers carried and the leading U.S. carrier

across the Atlantic, offering daily flights to 328 destinations

in 56 countries on Delta, Song, Delta Shuttle, the Delta

Connection carriers and its worldwide partners. Delta flies to

Argentina, Australia and the United Kingdom, among others.

The company and 18 affiliates filed for chapter 11 protection on

Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923).

Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents

the Debtors in their restructuring efforts. Timothy R. Coleman

at The Blackstone Group L.P. provides the Debtors with financial

advice. Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at

Akin Gump Strauss Hauer & Feld LLP, provide the Official

Committee of Unsecured Creditors with legal advice. John

McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James

S. Feltman at Mesirow Financial Consulting, LLC, serve as the

Committee's financial advisors.

The Debtors filed a chapter 11 plan of reorganization and

disclosure statement explaining that plan on Dec. 19, 2007. On

Jan. 19, 2007, they filed revisions to the plan and disclosure

statement, and submitted further revisions to the plan on

Feb. 2, 2007. On Feb. 7, 2007, the Court approved the Debtors'

disclosure statement. In April 25, 2007, the Court confirmed

the Debtors' plan. That plan became effective on April 30,

2007. The Court entered a final decree closing 17 cases on

Sept. 26, 2007.

* * *

As reported in the Troubled Company Reporter-Latin America on

Jan. 18, 2008, Standard and Poor's said that media reports that

Delta Air Lines Inc. (B/Positive/--) entered into merger talks

with UAL Corp. (B/Stable/--) and Northwest Airlines Corp.

(B+/Stable/--) will have no effect on the ratings or outlook on

Delta, but that confirmed merger negotiations would result in

S&P's placing ratings of Delta and other airlines involved on

CreditWatch, most likely with developing or negative

implications.

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

E L S A L V A D O R

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

AES CORP: Unit Gets Regulator Nod to Acquire Bioenergia Assets

--------------------------------------------------------------

AES Corp.'s El Salvador unit AES Nejapa Gas has secured

antitrust regulator Superintendencia de Competencia approval to

acquire assets and rights from Bioenergia for a waste-to-energy

project, Business News Americas reports.

According to the regulator, AES Nejapa's project to deploy a

biogas capture and burn system at the Nejapa landfill to

generate power won't significantly limit competition.

AES has been in Eastern Europe for over ten years, since it

acquired three power plants in Hungary in 1996. Currently, AES

has two distribution companies in Ukraine, which serve 1.2

million customers and generation plants in the Czech Republic

and Hungary. AES is also the leading company in biomass

conversion in Hungary, generating 37% of the nation's total

renewable generation in 2004. The company has Latin America

operations in Argentina, Brazil, Chile, Dominican Republic, El

Salvador and Panama.

* * *

The AES Corporation still carries Moody's Investors Service's

Corporate Family Rating and the senior unsecured rating assigned

at B1. The company also carries Fitch Ratings' 'BB/RR1' rating

on US$500 million issue of senior unsecured notes due 2017.

As reported in the Troubled Company Reporter-Latin America on

March 7, 2008, AES Corporation is in default under its senior

secured credit facility and its senior unsecured credit facility

due to a breach of representation related to its financial

statements as set forth in the credit agreements. As a result,

US$200 million of the debt under the company's senior secured

credit facility will be classified as current on the balance

sheet as of Dec. 31, 2007. There are no outstanding borrowings

under the senior unsecured facility.

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

G U A T E M A L A

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

BRITISH AIRWAYS: Facing GBP20Mln Costs Over Flight Cancellations

----------------------------------------------------------------

British Airways plc could face costs of more than GBP20 million

over flight cancellations during the opening weekend of

Heathrow's GBP4.3 billion Terminal 5, the Daily Telegraph

reports, citing analysts.

Howard Wheeldon of BGC Partners told the Daily Telegraph "BA's

got the cost of the cancellations, compensation, as well as

hotels for stranded passengers," who according to a lawyer, may

take legal action against BA, particularly Americans.

BA, the Daily Telegraph relates, canceled more than 200 flights

since Thursday's opening after the new terminal's baggage system

failed, affecting more than 20,000 passengers.

FT says the situation compelled BA to transfer large numbers of

bags to a contractor in Milan, Italy, for re-sorting and onward

shipment by road or air.

British Airways Statement

"Since Thursday, when Terminal 5 opened, we have made clear that

the service we have provided has not been good enough. We

apologize sincerely to our customers.

"The baggage system is now generally working better. From time

to time problems have developed that were not encountered during

the extensive trials. These issues are being addressed as they

arise by a team of engineers and IT specialists from BAA and BA.

"A backlog of undelivered bags has built up. This backlog is

not affecting the day-to-day operation of the baggage system,

and we are making every effort to reunite delayed bags with

their owners.

"We have more than 400 volunteers from across the airline

supporting this effort.

"This work takes time as delayed bags must undergo enhanced

levels of security screening. Much of this process has to be

done manually because we have been unable to use the Terminal 5

baggage system to process these bags automatically.

"We are sorry for the disruption and inconvenience caused to

customers whose flights have been canceled or whose bags have

been delayed. We will not rest until our service has been

restored to the high standard customers rightly expect.

"We continue to work towards increasing the number of services

in the days ahead.

"Both British Airways and BAA have invested an enormous amount

of time and effort to create Terminal 5. We remain confident

that these early difficulties can be overcome, and that the

terminal will be highly valued by customers and our staff in the

near future and for many years to come."

Today, April 2, 2008, the airline plans to operate 342 out of

392 flights to and from Terminal 5.

About British Airways

Headquartered in West Drayton, United Kingdom, British Airways

Plc -- http://www.ba.com/-- operates of international and

domestic scheduled and charter air services for the carriage of

passengers, freight and mail, and provides of ancillary

services. The British Airways group consists of British Airways

plc and a number of subsidiary companies including in particular

British Airways Holidays Ltd. and British Airways Travel

Shops Ltd. BA has offices in India and Guatemala.

* * *

As of Jan. 2, 2008, British Airways Plc carries a senior

unsecured debt rating of Ba1 from Moody's Investors' Service

with a stable outlook.

=========

H A I T I

=========

DYNCORP INT'L: Realigns Business, Adds Third Reporting Segment

--------------------------------------------------------------

DynCorp International has realigned its organization by

establishing a third business segment. The company had been

operating with two business segments, Government Services and

Maintenance and Technical Support Services.

Under the new alignment, the company will have three reporting

segments, International Security Services, Logistics and

Construction Management and Maintenance and Technical Support

Services. Robert B. Rosenkranz, who had led the Government

Services segment, will be president of International Security

Services, which will include the company’s operations in police

training, translation services, security, specialty aviation,

counter-drug operations, and firefighting.

Rory Fisher has been named president of Logistics and

Construction Management. Previously Mr. Fisher was vice

president and general manager of the company’s Operation,

Maintenance, and Construction Management unit. Logistics and

Construction Management will be responsible for all the

company’s logistics, contingency, and construction operations,

including any work awarded under the LOGCAP IV contract.

The Maintenance and Technical Support Services business segment

is unchanged, except for the addition of the company’s DynMarine

business group, formerly part of Government Services.

DynCorp International Inc. -- http://www.dyn-intl.com/-- (NYSE:

DCP) through its operating company DynCorp International LLC, is

a provider of specialized mission-critical technical services,

mostly to civilian and military government agencies. It

operates major programs in law enforcement training and support,

security services, base operations, aviation services and

operations, and logistics support worldwide. Headquartered in

Falls Church, Virginia, DynCorp International LLC has

approximately 15,000 employees worldwide including Haiti.

* * *

DynCorp still carried Standard and Poor's BB- rating assigned on

June 15, 2006. S&P said the outlook is stable.

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

H O N D U R A S

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

CHIQUITA BRANDS: Recalling Cantaloupes from Honduras

----------------------------------------------------

Chiquita Brands International told Thomson Financial that it is

recalling cantaloupes from Honduran grower Agropecuaria

Montelibano for possible contamination of Salmonella.

The product was distributed to clients throughout the U.S. and

Canada in cardboard cartons with the brands Mike's Melons, Mayan

Pride, and Chiquita, Thomson Financial states, citing Chiquita

Brands.

Headquartered in Cincinnati, Ohio, Chiquita Brands International

Inc. (NYSE:CQB) -- http://www.chiquita.com/-- operates as an

international marketer and distributor of bananas and other

fresh produce sold under the Chiquita and other brand names in

over 80 countries. It sells packaged salads under the Fresh

Express brand name primarily in the United States. The company

also distributes and markets fresh-cut fruit and other branded,

value-added fruit products. Chiquita operates its business

through three segments: the banana segment includes the

sourcing, transportation, marketing and distribution of bananas;

the fresh select segment includes the sourcing, marketing and

distribution of whole fresh fruits and vegetables other than

bananas, and the fresh cut segment includes value-added salads,

foodservice and fresh-cut fruit operations. Remaining

operations, reported in other, primarily consist of processed

fruit ingredient products, which are produced in Latin America

and sold in other parts of the world, and other consumer

packaged goods.

Chiquita, with revenues of approximately $4.7 billion for the

fiscal year ended Dec. 31, 2007, employs approximately 25,000

people operating in more than 70 countries worldwide, including

Belgium, Columbia, Germany, Panama, Philippines, among others.

* * *

As reported in the Troubled Company Reporter-Latin America on

Feb. 28, 2008, Standard & Poor's Ratings Services assigned its

'CCC' senior unsecured rating to Chiquita Brands International

Inc.'s US$200 million convertible senior notes due 2016. Net

proceeds from the issuance were used to repay a portion of the

US$375 million term loan C (US$132 million outstanding at

Dec. 31, 2007, pro forma for this notes offering) of its senior

secured credit facility.

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

J A M A I C A

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

AIR JAMAICA: Will Suspend Three Weekly Flights to St. Lucia

-----------------------------------------------------------

Air Jamaica will suspend its three weekly flights to St. Lucia

as part of its restructuring efforts, Radio Jamaica reports.

Radio Jamaica relates that Air Jamaica admitted in March it was

forced to make the decision due to streamlining and route

rationalization.

St. Lucia's Tourism Minister Allen Chastanet told Radio Jamaica

that St. Lucians are prepared to welcome Air Jamaica back

anytime.

Headquartered in Kingston, Jamaica, Air Jamaica --

http://www.airjamaica.com/-- was founded in 1969. It flies

passengers and cargo to almost 30 destinations in the Caribbean,

Europe, and North America. Air Jamaica offers vacation packages

through Air Jamaica Vacations. The company closed its intra-

island services unit, Air Jamaica Express, in October 2005. The

Jamaican government assumed full ownership of the airline after

an investor group turned over its 75% stake in late 2004. The

government had owned 25% of the company after it went private in

1994. The Jamaican government does not plan to own Air Jamaica

permanently.

* * *

As reported in the Troubled Company Reporter-Latin America on

June 12, 2007, Moody's Investors Service assigned a rating of B1

to Air Jamaica Limited's guaranteed senior unsecured notes.

On July 21, 2006, Standard & Poor's Rating Services assigned a

"B" long-term foreign issuer credit rating on Air Jamaica Ltd.,

which is equal to the long-term foreign currency sovereign

credit rating on Jamaica, based on the government's

unconditional guarantee of both principal and interest payments.

CABLE & WIRELESS: Jamaican Unit Raises Line Rental Fee

------------------------------------------------------

Cable and Wireless Plc's Jamaican unit said it will increase

line rental fee due to inflationary pressures and increasing

operational costs, Radio Jamaica reports.

Radio Jamaica relates that residential clients will begin paying

J$700 per month, compared to the current J$500 per month.

According to Radio Jamaica, business line rental -- PBX trunk

lines, national and international toll free lines, and direct

inward dialing lines -- will increase to J$1,600 from J$1,250

per month.

Headquartered in London, Cable & Wireless Plc

-- http://www.cw.com/new/-- operates through two standalone

business units -- International and Europe, Asia & US. The

International business unit operates integrated

telecommunications companies in 33 countries offering mobile,

broadband, domestic and international fixed line services to

residential and business customers, with principal operations in

the Caribbean, Panama, Macau, Monaco and the Channel Islands.

The Europe, Asia & U.S. business unit provides enterprise and

carrier solutions to the largest users of telecoms services

across the U.K., U.S., continental Europe and Asia -- and

wholesale broadband services in the U.K.

* * *

As of Feb. 12, 2008, Cable & Wireless Plc carried a Ba3 long-

term corporate family rating, a B1 senior unsecured debt rating

and a Ba3 probability of default rating from Moody's Investors

Service, which said the outlook is stable.

The company also carries a BB- long-term local and foreign

issuer credit ratings from Standard & Poor's Ratings Services,

which said the outlook is stable. S&P rates its short-term

local and foreign issuer credit at B.

CASH PLUS: Debt Exceeds Income; Goes Into Receivership

------------------------------------------------------

Cash Plus Limited is in receivership, Barbara Gayle and Gareth

Manning at The Jamaica Gleaner reports.

According to The Gleaner, a firm goes into receivership when its

debt exceeds its income.

The report says that Cash Plus admitted that it wouldn't be able

to pay its lenders until April 14. The firm has 40,000 lenders

with loans totaling J$4 billion.

As reported in the Troubled Company Reporter-Latin America on

April 1, 2008, Cash Plus was unable to repay its investors on

March 31. The Financial Services Commission said it was

informed by the attorney acting on behalf of Cash Plus that the

investment club lacked the funds to start the repayment of the

principal and interest owing to its investors.

The Gleaner relates that one of Cash Plus' managers secured

approval from Senior Puisne Judge Marva McIntosh at the Jamaican

Supreme Court for the appointment of a temporary manager.

Justice McIntosh granted the approval after hearing an

application from attorneys-at-law Gordon Robinson and Minette

Palmer.

PricewaterhouseCoopers' accountant Kevin Bandoian was appointed

as joint receiver-manager for Cash Plus, The Gleaner notes.

According to Pricewaterhouse Coopers, Mr. Bandoian will start

work immediately from the offices of Cash Plus and its

affiliates under the supervision of the court. He will advise

creditors of the progress of the process.

The Gleaner notes that the appointment of the receiver-manager

allows for supervision of the operations of Cash Plus and the

determination of assets belonging to the firm so that a report

may be made to the court on the assets available for

distribution to creditors.

The court has prohibited Cash Plus and its affiliates from

selling, transferring, and dealing with or dissipating the

assets of the company, The Gleaner states.

Cash Plus Ltd is an investment club in Jamaica . It collapsed

in 2007 after the Financial Services Commission moved to

regulate its operations. The company is a financial arm of the

Cash Plus Group of Companies, a business conglomerate

established in 2002 by mortgage banker Carlos Hill. The company

offers its participants the opportunity to participate in the

group's ventures which include mergers and numerous

acquisitions.

===========

M E X I C O

===========

CONSTELLATION COPPER: Defaults in CN$69 Million Debentures

----------------------------------------------------------

Constellation Copper Corporation said that approximately

CN$1.9 million of interest due on March 31, 2008, on its

CN$69 million convertible unsecured senior debentures has not

been paid, resulting in a default under the terms of the

convertible debentures.

If the interest is not paid within 30 days, by April 30, 2008,

the default will become an event of default as defined in the

indenture, after which the terms of the convertible debentures

provide the debenture holders with certain rights and remedies

during the continuance of a default, including the right to

accelerate all of the debt due under the convertible debentures.

The company continues to pursue various near term financing

alternatives, including bank financing, equity investment,

mergers, and sale of certain assets or sale of the entire

company. The company may consider filing for legal protection

from its creditors in both Canada and the United States if cash

liquidity problems can not be resolved.

Going Concern

As reported in the Troubled Company Reporter on Jan. 15, 2008,

the company related that there is significant doubt about the

its ability to continue as a going concern. The cash balance of

US$10.87 million at Sept. 30, has been reduced further to

approximately US$3.20 million at Dec. 31, 2007, and in order to

provide liquidity, the company is pursuing various near term

financing alternatives, including bank financing, equity

investment, mergers, and sale of certain assets or sale of the

entire company.

In late November 2007, as a result of a comprehensive management

evaluation of Lisbon Valley operations, the company disclosed

its decision to cease mining and crushing activities and convert

the Lisbon Valley mine to a leach only operation in early 2008.

The evaluation included analyses of various mining plans, waste

stripping requirements, contract mining arrangements, available

mining equipment, projected copper prices and extensive

operating cost and cash flow projections. In connection with

the evaluation and conversion to a leach only operation, the

company recorded an asset impairment of US$92,918,000.

At Sept. 30, 2007, the company's balance sheet showed total

assets of US$72.68 million and total liabilities of

US$90.40 million, resulting to a total shareholders' deficit of

US$17.72 million.

About Constellation Copper

Headquartered in Lakewood, Colorado, Constellation Copper

Corporation (CCU: TSX) -- http://www.constellationcopper.com/--

evaluates and develops mineral properties in the United States

and Mexico. The company holds its properties primarily through

three of its wholly owned subsidiaries, Lisbon Valley Mining Co.

LLC, Minera Terrazas S.A. de C.V. and San Javier del Cobre S.A.

de C.V. LVMC operates the Lisbon Valley copper mine, which

comprises three main deposits: Sentinel, Centennial and GTO,

plus the Cashin satellite deposit, with reserves and resources

totalling +50 million tons and grading an average 0.48% copper.

Minera Terrazas holds the company's interest in the Terrazas

zinc-copper project located in north- central Mexico. The

property has a total resource of 90 million tonnes grading 1.37%

zinc and 0.32% copper in two adjacent deposits. San Javier del

Cobre S.A. de C.V. holds the company's interest in the San

Javier copper property located in northwestern Mexico.

COREL CORP: Gets Proposal from Shareholder Corel Holdings

---------------------------------------------------------

Corel Corporation received an unsolicited proposal from Corel

Holdings L.P., which is controlled by an affiliate of Vector

Capital Corporation, the holder of 69% of Corel's outstanding

common shares.

CHLP is proposing to make an offer to acquire all of Corel's

outstanding common shares not currently held by CHLP at a price

of US$11.00 cash per share. CHLP has indicated that any such

offer would be conditional upon, among other things,

satisfactory confirmatory due diligence and Corel's existing

credit facility remaining in place after the consummation of any

transaction.

The board of directors of Corel has formed a special committee

of independent members of the board consisting of Ian Giffen,

Steven Cohen and Daniel Ciporin to assist it in evaluating and

responding to the CHLP proposal and other related strategic

considerations. Corel will not be providing further comment at

this time but will provide updates as further information

becomes available. There can be no assurance that any

transaction will be completed or, if completed, of its terms,

price or timing.

About Corel Corporation

Ottawa, Ontario-based Corel Corporation (NASDAQ: CREL) (TSX:

CRE) -- http://www.corel.com/-- is a packaged software company

with an estimated installed base of over 40 million users. The

company provides productivity, graphics and digital imaging

software. Its products are sold in over 75 countries through a

scalable distribution platform comprised of original equipment

manufacturers, Corel's international websites, and a global

network of resellers and retailers. The company's product

portfolio features CorelDRAW(R) Graphics Suite, Corel(R)

WordPerfect(R) Office, WinZip(R), Corel(R) Paint Shop(R) Pro,

and Corel Painter(TM).

The company has operations in Germany, Italy, the United

Kingdom, Australia, Japan, Korea, Brazil, and Mexico, among

others.

DURA AUTOMOTIVE: Further Amends First Revised Chapter 11 Plan

-------------------------------------------------------------

DURA Automotive Systems, Inc., and its debtor affiliates

delivered to the U.S. Bankruptcy Court for the District of

Delaware on March 31, 2008, a second amendment of their Revised

Joint Plan of Reorganization and a disclosure statement

explaining

the Plan.

The Revised Plan contemplates providing the $228,100,000 second

lien facility claims with convertible preferred stock and

distributing 100% of the new common stock to general unsecured

creditors. The Original Plan had contemplated providing cash in

satisfaction of the Second Lien Facility Claims.

In addition, instead of a backstopped US$160,000,000 rights

offering, the contemplated Second Amended Revised Plan

transactions are to be funded by US$80,000,000 in cash proceeds

from New Money Investors that will take the form of a second

lien term loan with a US$100,000,000 face amount. The New Money

Investors will comprise certain existing Second Lien Lenders,

Senior Noteholders and other investors.

The Revised Plan contemplates that a new entity, New Dura Opco,

will acquire the assets of Dura Operating Corporation in a

taxable transaction through these steps:

(a) On or before the Effective Date, certain Dura creditors,

or a nominee on behalf of them, will form New Dura, with

nominal capitalization;

(b) New Dura will then form New Dura Holdings;

(c) New Dura Holdings will then form New Dura Opco;

(d) New Dura will make a capital contribution of Convertible

Preferred Stock and Common Stock to New Dura Holdings,

which shares will then be contributed to New Dura Opco;

(e) On the Effective Date, Dura Operating Corporation will

transfer certain assets and the stock of its subsidiaries

to New Dura Opco in exchange for the Convertible Preferred

Stock and the New Common Stock;

(f) On the Effective Date, one or more of the U.S. Debtors

will distribute the New Common Stock and the Convertible

Preferred Stock to its creditors; and

(g) Dura Operating Corporation will remain in existence and

will retain certain assets, which will be leased to New

Dura Opco.

A full-text copy of the blacklined version of the Revised Plan

is available for free at:

http://bankrupt.com/misc/dura_blacklinemarch31plan.pdf

A full-text copy of the blacklined version of the Disclosure

Statement is available for free at:

http://bankrupt.com/misc/dura_blacklinemarch31ds.pdf

Issuance of New Securities

On the Effective Date, New Dura will issue or reserve for

issuance all securities required to be issued pursuant to the

Revised Plan. New Dura will make a capital contribution of

Convertible Preferred Stock and Common Stock to New Dura

Holdings, which shares will then be contributed to New Dura

Opco. After being exchanged for substantially all of the assets

of Dura Operating Corporation, the New Common Stock and

Convertible Preferred Stock will be held through The Depository

Trust Company and not distributed in the form or certificated

stock to the extent possible.

Settlements Embodied in the Revised Plan

Lawrence A. Denton, chairman, president, and chief executive

officer of DURA, relates that the Second Amended Revised Plan

contains a number of new settlement terms and conditions that

either replace, modify or complement, the settlements embodied

in the Plan of Reorganization filed Aug. 22, 2007. The

settlements are:

1. Certain existing Second Lien Lenders, Senior Noteholders

and other investors, including, but not limited to, any

holders of Subordinated Notes or Convertible Preferred

Securities willing to invest, will contribute new capital

of US$80,000,000, in exchange for secured debt, which will

have a second lien secured position with a face amount of

up to US$100,000,000.

2. The Revised Plan contemplates converting the Second Lien

Facility Claims, which totals about US$228,100,000, into

Convertible Preferred Stock with these terms:

* Liquidation preference as of the Effective Date equal

to Second Lien Allowed Claim amount;

* 20% paid-in-kind dividend;

* Beginning on the third anniversary of the Effective

Date, holders of the Convertible Preferred Stock

shares into their pro rata share of 92.5% of the New

Common Stock, and thereafter, into New Common Stock

based on a percentage reflecting any accrued PIK

Dividends through the conversion date since the third

anniversary, if the Convertible Preferred Stock were

to be converted at its full amount including any

accrued PIK Dividends and with no prior redemptions.

The percentage will be proportionately reduced to

reflect the actual amounts of the unredeemed

Convertible Preferred Stock outstanding, including any

accrued PIK Dividends as of the conversion date;

* Beginning on the fourth anniversary of the Effective

Date, the holders of New Common Stock may call the

conversion of all outstanding Convertible Preferred

Stock; provided that either (i) the Convertible

Preferred Stock must be trading at a level equal to or

exceeding 115% of the liquidation preference of the

Convertible Preferred Stock on the date on which the

conversion is called, or (ii) the number of shares of

New Common Stock into which the Convertible Preferred

Stock is then convertible, in the aggregate, is

trading at a similar valuation;

* Beginning on the 10th anniversary of the Effective

Date, to the extent that the Convertible Preferred

Stock remains outstanding, holders representing more

than a majority of the Convertible Preferred Stock

will have the right to appoint a majority of the New

Board's directors;

* At any time before the third anniversary of the

Effective Date, New DURA may ratably redeem up to 100%

of the Convertible Preferred Stock plus accrued PIK

Dividends then outstanding; provided that on the date

of any redemption, holders may elect to convert a

proportion of their Convertible Preferred Stock shares

into New Common Stock shares;

* The Special Transactions Committee may effectuate a

redemption of Convertible Preferred Stock at any time,

provided that the post-transaction cost of funds meets

certain customary parameters for refinancing

indebtedness typically found in an indenture; provided

that a majority of the entire Board of Directors must

approve any redemption using funds from debt senior to

the Convertible Preferred Stock if the size of the

proposed redemption is less than US$112,500,000.

3. The Revised Plan contemplates paying in full and in cash

all DIP Facility Claims. The Plan also contemplates

converting Senior Note Claims into approximately 95% of the

New Common Stock and the other U.S. General Unsecured

Claims into approximately 5% of the New Common Stock. The

Plan intends to pay in cash on a pro rata basis all

Canadian General Unsecured Claims. The Plan also intends

to discharge all other Claims, including Claims arising

from the Subordinated Notes and the Convertible

Subordinated Debentures, without recovery, and canceling

all Equity Interests in the Debtors.

4. The Second Lien Group, the Creditors Committee, and the

Commitment Parties will choose six independent board

members. The chief executive officer of New DURA will be a

member of the New DURA Board.

5. The Plan contemplates a special subcommittee of the New

DURA Board that is responsible, if ever, to redeem the

Convertible Preferred Stock.

Canadian Unsecured Claims Recovery

The Second Amended Revised Plan includes a liquidation analysis

as of May 13, 2008, prepared by RSM Richter, Inc., the

information officer appointed in the proceedings commenced by

the Debtors' affiliates under the Canadian Companies' Creditors

Arrangement Act pending before the Ontario Superior Court of

Justice:

Dura Automotive Systems (Canada), Ltd.

Projected Liquidation Analysis

As of May 13, 2008

(Unaudited)

(In Thousands)

Estimated Recovery

------------------

Book Value Low High

---------- ------- -------

Property, plant and equipment US$15,842 US$7,349 US$9,153

Intercompany receivables 16,509 - 531

Trade accounts receivables 873 - 87

Other assets 7,759 3,082 6,597

Equity value, non-debtors - - -

---------- ------- -------

Total assets 40,983 10,431 16,368

---------- ------- -------

Less:

Professional fees 500 1,000

Net assets for creditor distribution 9,931 15,368

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

A full-text copy of the Canadian Liquidation Analysis is

available for free at:

http://bankrupt.com/misc/dura_canadianliquidationanalysis.pdf

The Canadian Liquidation Analysis concludes that creditors of

the Dura Automotive Systems (Canada), Ltd., would receive a

median recovery of approximately 12.5% in a liquidation. The

estimated recovery rate pursuant to the Canadian Liquidation

Analysis is equivalent to the projected cash distribution to the

Canadian General Unsecured Claim holders under the Revised Plan.

The Canadian Information Officer relates that creditors' claims

against DAS Canada total US$102,399,000:

Prepetition trade creditors US$2,490,000

Employee pension claims 7,164,000

Severance obligation claims 1,238,000

Intercompany debt owing to Dura Canada LP 91,507,000

------------

Total unsecured liabilities US$102,399,000

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

The Revised Plan contemplates that New Dura will assume and

satisfy all amounts owing in respect of severance, the majority

of which is payable to former employees of the Bracebridge

facility. The New Dura will also assume and fully satisfy DAS

Canada's pension obligation, which relates to the estimated

wind-up deficiency in DAS Canada's pension plans. The Financial

Services Commission of Ontario has filed a claim for

US$7,164,000, against the U.S. Debtors in respect of a wind-up

deficiency.

The Canadian Liquidation Analysis projects that DAS Canada's

remaining assets by May 2008 will comprise an asset pool as was

available at November 30, 2007, primarily consisting of the land

and buildings of the Stratford and Bracebridge Facilities, the

mortgage receivable associated with the sale of the Brantford

Facility, which is CN$800,000, and the Transferred Assets. In

addition, DAS Canada has tax refunds due to it, with a book

value of about US$7,300,000.

New Schedule

Counsel to DURA, Daniel J. DeFranceschi, Esq., at Richards,

Layton & Finger, P.A., in Wilmington, Delaware, related, in a

status report filing with the Court, that the Debtors' DIP

Financing arrangements include a series of plan confirmation

milestones:

April 15, 2008 -- DURA will procure a commitment from a person

or a group of persons to provide equity

exit financing to the company and the

Guarantors, whether in the form of a rights

offering, new equity, or otherwise, on the

effectiveness of the Revised Joint Plan of

Reorganization, in an amount and on terms

and conditions acceptable to the DIP

Administrative Agent and Lenders.

May 8, 2008 -- DURA will procure a commitment from a person

or a group of persons to provide debt exit

financing to the company and the Guarantors

on the effectiveness of the Revised Plan, in

an amount and on terms and conditions

acceptable to the Administrative Agent and

Lenders.

May 15, 2008 -- The Court must have approved the Disclosure

Statement explaining the Revised Plan.

June 9, 2008 -- The Court must have confirmed the Revised

Plan.

June 20, 2008 -- The Effective Date of the Revised Plan will

have occurred and transactions contemplated

as part of the Revised Plan will have

closed.

Creditors Committee Supports Plan

In a filing with the Court, the Official Committee of Unsecured

Creditors believes that the Debtors' Revised Plan, as amended,

provides the best recovery for unsecured creditors and presents

the Debtors with the greatest opportunity to achieve a

successful reorganization. The Creditors Committee says the

Disclosure Statement explaining the Revised Plan contains

adequate information that would enable claim holders in the

Chapter 11 cases to make an informed judgment about the Revised

Plan, including information regarding the Debtors' estimated

enterprise value, financial projections and liquidation

analysis.

Accordingly, the Creditors Committee recommends approval of the

Disclosure Statement.

Counsel for the Creditors Committee, Erin Edwards, Esq., at

Young Conaway Stargatt and Taylor LLP, in Wilmington, Delaware,

notes that, to avoid having to raise the amount of exit

financing, the Revised Plan contemplates providing the second

lien facility claims with convertible preferred stock and

distributing 100% of the new common stock to general unsecured

creditors. The range of value for the New Common Stock to be

distributed to general unsecured creditors is estimated to be

between approximately US$29,000,000, and US$139,000,000, with a

mid-point of about US$84,000,000.

The Creditors Committee tells the Court that while its financial

advisor, Chanin Capital Partners, believes that one could argue

that the value of the New Common Stock is greater than the value

assigned to it by the Debtors in the Disclosure Statement,

Chanin is confident that the value of the New Common Stock does

not approach the level necessary to provide a distribution to

holders of the Subordinated Notes Claims.

J.W. Korth Objects to Disclosure Statement

James W. Korth, managing partner of J.W. Korth & Company, on

behalf of an ad hoc committee of holders of more than

$100,000,000, of 8-5/8% Senior Bonds and 9% Subordinated Bonds

issued by DURA Automotive Systems, Inc., argues that the

Disclosure Statement explaining the Debtors' Revised Joint Plan

of Reorganization does not give claim holders the ability to

make informed decisions about the Reorganization Plan and

decision on whether the liquidation value of the Debtors is

higher than the amounts to be received by the Plan.

Mr. Korth points out that:

(1) The Debtors' management is believed to have a conflict of

interest. Majority of the two highest classes of debt

under the DIP Financing is held by two hedge funds,

Pacificor LLC and The Blackstone Group, who incidentally

may also be insiders in control of the Ad Hoc Committee of

Second Lien Holders and the Official Committee of

Unsecured Creditors. Under the Revised Plan, Pacificor

and Blackstone will receive 100% of the equity in the New

DURA, which will wipe out all other debt holders and leave

a possible enormous profit in the hands of the management

and the Debtors' investors.

(2) The valuation and liquidation analysis does not present

values of the 94 separate debtor entities as going

concerns with associated goodwill, patents and trademarks.

(3) DURA's management and their advisors did not account for

$900,159,000, stated book value of the non-debtor

subsidiaries in the Liquidation Analysis.

(4) There is a stark difference in net worth values between

the Debtors' monthly operating reports and the balance

sheet provided in the Liquidation Analysis.

(5) The Debtors' management and its advisors did not evaluate

more than 60 patents and trademarks that are owned by the

Debtors.

(6) In November 2006, DURA's management and advisors wrote off

more than US$637,000,000, in good will, and the write-off

was not explained in the Disclosure Statement or filings

at the Securities and Exchange Commission at the time the

write-off was executed.

(7) The Debtors are not cooperating on the information request

to inspect their books and records and is not providing

the information the claims holders deserve.

Moreover, Mr. Korth asserts that claims holders do not have

sufficient information to evaluate the Plan because Pacificor

and Blackstone are reported in control of the planned

Reorganization and the trustees for the bondholders are

receiving guaranteed payments from the Debtors. He adds that

there is no disclosure as to why the trustee for senior

subordinated notes ceased activities in support of the claim

holders, and what the guaranteed payments are for.

Mr. Korth further notes that the Disclosure Statement does not

provide the details of who owns the majority of the second lien

notes and the 8-5/8% senior notes and how the holders are

organized. Hence, claim holders would not have sufficient

information to decide whether possible insiders have influenced

the development of the Plan. He says that there appears to be

about US$1,100,000,000, in value, that was on the balance sheet

on the Petition Date, and is not in the predecessor books shown

in the Disclosure Statement.

Accordingly, Mr. Korth asks the Court to deny the Disclosure

Statement until the matters are addressed. He also asks the

Court to allow him to complete a new Liquidation Analysis with

the assistance of a qualified independent third party that

evaluates the sales price of each of the 94 separately operating

subsidiaries, with their goodwill patents and trademarks. To

assist him in the preparation of a new Liquidation Analysis, Mr.

Korth further seeks the Court's permission to examine the

Debtors' books and records, including:

* the monthly income statements and balance sheets of each

subsidiary of DURA for the past two years until the end of

February 2008;

* the analysis of the goodwill of each subsidiary whereby the

Debtor last certified that goodwill and then wrote off that

goodwill in November 2006;

* a specific written statement line by line from the Debtor on

how the planned Fresh Start balance sheet will differ from

the balance sheet included in the Monthly Operating Reports

and justification for the differences;

* the contracts and any amendments with the Debtors and Alix

Partners and Miller Buckfire and Kirkland & Ellis LLP;

* copies of the presentation to potential lenders for the

failed Exit Financing in December 2007;

* the original underwriting files for the bonds including all

notes regarding the creation of each issue's indenture and

the original proposals by the underwriters for those issues

along with the underwriting agreements;

* detailed analysis behind the income projections for the next

three years as stated in the Disclosure Statement; and

* invoices and notes from the trustees for the senior or

subordinated bonds.

Debtors Ask Court to Overrule Korth Objection

The Debtors ask the Court to overrule Mr. Korth's Disclosure

Statement Objection because the issues raised therein have

either (i) been adequately addressed by the Revised Disclosure

Statement filed March 13 as supplemented by the March 31

Disclosure Statement; (ii) asserted confirmation issues that

should be adjudicated at the confirmation hearing; or (iii) are

otherwise without merit.

Mr. DeFranceschi relates that J.W. Korth was part of the ad hoc

group of Subordinated Noteholders represented by Ballard Spahr

Andrews & Ingersoll, LLP, which initiated the X-Clause Adversary

Proceeding. In litigating that Adversary Proceeding, the

Subordinated Noteholders asked, and received, extensive

discovery materials from the Debtors, he says.

Mr. DeFranceschi asserts that Mr. Korth misapprehends the

distinctive nature and differing purposes of the monthly

operating reports on the one hand and the Revised Disclosure

Statement's liquidation analysis and valuation analysis on the

other. "Mr. Korth's real objection is thus not the scope or

quality of the Revised Disclosure Statement's disclosure. He is

really objecting to the Debtors' conclusions regarding

enterprise value and liquidation and to the economic deal set

forth in the Revised Plan that rests on those conclusions," Mr.

DeFranceschi points out.

The Debtors tell the Court that modifying the liquidation and

valuation analysis contained in the Revised Disclosure Statement

to address Mr. Korth's particular concerns would do nothing to

enhance the Revised Disclosure Statement in providing adequate

information to hypothetical creditors in the three voting

classes -- Class 2 Second Lien Facility Claims, Class 3 Senior

Notes Claims, and Class 5 Other General Unsecured Claims.

The Debtors also ask the Court to deny Mr. Korth's requests for

irrelevant information concerning the identify of creditors.

The Debtors assert that Mr. Korth seeks disclosure regarding a

number of matters irrelevant to determining whether the

Disclosure Statement meets the standard under Section 1125 of

the Bankruptcy Code.

About DURA

Rochester Hills, Mich.-based DURA Automotive Systems Inc.

(Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent

designer and manufacturer of driver control systems, seating

control systems, glass systems, engineered assemblies,

structural door modules and exterior trim systems for the global

automotive industry. The company is also a supplier of similar

products to the recreation vehicle and specialty vehicle

industries. DURA sells its automotive products to North

American, Japanese and European original equipment manufacturers

and other automotive suppliers.

The company has three locations in Asia -- China, Japan and

Korea. It has locations in Europe and Latin-America,

particularly in Mexico, Germany and the United Kingdom.

The Debtors filed for chapter 11 petition on Oct. 30, 2006

(Bankr. D. Del. Case No. 06-11202). Marc Kieselstein, P.C.,

Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq.,

at Kirkland & Ellis LLP are lead counsel for the Debtors'

bankruptcy proceedings. Daniel J. DeFranseschi, Esq., and Jason

M. Madron, Esq., at Richards Layton & Finger, P.A. Attorneys are

the Debtors' co-counsel. Baker & McKenzie acts as the Debtors'

special counsel.

Togut, Segal & Segal LLP is the Debtors' conflicts counsel.

Miller Buckfire & Co., LLC is the Debtors' investment banker.

Glass & Associates Inc., gives financial advice to the Debtor.

Kurtzman Carson Consultants LLC handles the notice, claims and

balloting for the Debtors and Brunswick Group LLC acts as their

Corporate Communications Consultants for the Debtors.

As of Jan. 31, 2008, the Debtor had US$1,503,682, 000 in total

assets and US$1,623,632,000 in total liabilities. The Debtors

have asked the Court to extend their plan filing period to

April 30, 2008.

(Dura Automotive Bankruptcy News, Issue No. 50; Bankruptcy

Creditors' Service Inc., http://bankrupt.com/newsstand/or

215/945-7000).

DURA AUTOMOTIVE: Court Extends Exclusivity Deadline to April 30

---------------------------------------------------------------

The Hon. Kevin J. Carey of the U.S. Bankruptcy Court for the

District of Delaware extended the period within which Dura

Automotive Systems Inc. and its debtor-affiliates may file any

plan of reorganization until April 30, 2008, and the period

within which they may solicit acceptances of the plan until

June 30, 2008.

As reported in the Troubled Company Reporter on March 19, 2008,

the Debtors filed an amended First Revised Joint Plan of

Reorganization and Disclosure Statement explaining the Plan on

March 13, 2008.

The Hon. Kevin Carey of the U.S. Bankruptcy Court for the

District of Delaware will convene a hearing tomorrow,

April 3, 2008, to determine whether the Disclosure Statement

contains adequate information.

The Original Plan had contemplated payment in cash, in full, of

all Class 2 - Second Lien Facility Claims, a backstopped rights

offering open to certain Class 3 Claims and certain Class 5

claims, and an equity or cash distribution equal to

approximately 55% for the Class 3 Claims and 22% for the Class 5

Claims. However, without the level of exit financing envisioned

by the Original Plan, these recoveries are no longer realistic.

The Debtors and their creditor constituencies, therefore,

devised the Revised Plan based upon equitizing claims in Classes

2, 3 and 5.

Rochester Hills, Mich.-based DURA Automotive Systems Inc.

(Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent

designer and manufacturer of driver control systems, seating

control systems, glass systems, engineered assemblies,

structural door modules and exterior trim systems for the global

automotive industry. The company is also a supplier of similar

products to the recreation vehicle and specialty vehicle

industries. DURA sells its automotive products to North

American, Japanese and European original equipment manufacturers

and other automotive suppliers.

The company has three locations in Asia -- China, Japan and

Korea. It has locations in Europe and Latin-America,

particularly in Mexico, Germany and the United Kingdom.

The Debtors filed for chapter 11 petition on Oct. 30, 2006

(Bankr. D. Del. Case No. 06-11202). Marc Kieselstein, P.C.,

Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq.,

at Kirkland & Ellis LLP are lead counsel for the Debtors'

bankruptcy proceedings. Daniel J. DeFranseschi, Esq., and Jason

M. Madron, Esq., at Richards Layton & Finger, P.A. Attorneys are

the Debtors' co-counsel. Baker & McKenzie acts as the Debtors'

special counsel.

Togut, Segal & Segal LLP is the Debtors' conflicts counsel.

Miller Buckfire & Co., LLC is the Debtors' investment banker.

Glass & Associates Inc., gives financial advice to the Debtor.

Kurtzman Carson Consultants LLC handles the notice, claims and

balloting for the Debtors and Brunswick Group LLC acts as their

Corporate Communications Consultants for the Debtors.

As of Jan. 31, 2008, the Debtor had US$1,503,682, 000 in total

assets and US$1,623,632,000 in total liabilities. (Dura

Automotive Bankruptcy News, Issue No. 50; Bankruptcy Creditors'

Service Inc., http://bankrupt.com/newsstand/or 215/945-7000).

* MEXICO: 2008 Outlook for Major Banks is Adequate, Fitch Says

--------------------------------------------------------------

The Mexican banking system has maintained sound performance, and

the outlook remains adequate for the foreseeable future,

according to a Fitch Special Report, titled "Major Mexican

Banks: Semi-Annual Review and Outlook". However, challenges are

increasing as strong loan growth has affected delinquency ratios

and credit costs and the worsening global environment in the

capital markets pressures liquidity and funding costs.

The report includes a system-wide overview and an assessment of

the six largest Mexican banks rated by Fitch.

According to Fitch's Latin America Financial Institutions Group

Senior Director, Alejandro Garcia, "While Fitch believes that

most Mexican banks will perform adequately going forward,

profitability will likely decline from the historically high and

unsustainable levels it has reached recently."

Fitch expects that loan growth will remain solid for the

foreseeable future, reaching double-digit rates in 2008-2009.

Offsetting factors against the aforementioned risks are the

banks' sound financial condition, low reliance on wholesale

funding, adequate risk-adjusted profitability in most lending

segments, as well as the relatively higher resilience of the

Mexican economy to the United States economic slowdown.

Fitch does not anticipate downward pressure on the major banks'

individual ratings under current market conditions. However,

negative ratings actions cannot be ruled out for specific

institutions should asset quality problems become exacerbated

without the increased ability to absorb losses.

The full report is available on the Fitch Ratings Web site, at

http://www.fitchratings.com

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

P U E R T O R I C O

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

DORAL FINANCIAL: S&P Lifts LT Counterparty Credit Rating to B+

--------------------------------------------------------------

Standard & Poor's Ratings Services raised its long-term

counterparty credit rating on Doral Financial Corp. to 'B+'

from 'B' and removed it from CreditWatch Positive, where it had

been placed July 20, 2007. The outlook is stable.

"The rating action follows a review of Doral's credit quality,

including its capital, liquidity, operating performance,

business strategy, and various accounting and regulatory

issues," said S&P's credit analyst Robert Hansen. The

CreditWatch placement followed Doral's sale of its common stock

to Doral Holdings Delaware LLC and repayment in full of

US$625 million in senior notes.

S&P thinks the company's liquidity and capital position have

improved due to the completion of its recapitalization in 2007.

Furthermore, the rating agency expects the recapitalization to

have a positive effect on the company's reputation among

depositors and borrowers, which the agency believes had been

tarnished by previous accounting and liquidity issues. However,

the rating agency remains very concerned by the significant

spike in nonperforming assets within the company's loan

portfolio, notably within its construction portfolio. S&P is

also concerned about Doral's weaknesses in internal financial

reporting controls, as mentioned in its 2007 10-K, which it

views negatively in the rating assessment.

The counterparty credit rating on Doral Financial reflects its

strengthened capital ratios, adequate liquidity, and experienced

management team. However, the ratings also incorporate

significant credit quality deterioration, low profitability,

formidable competition, deficiencies in enterprise risk

management, and a challenging economic environment.

Specifically, the company reported a net loss of nearly

US$171 million in 2007 versus a loss of nearly US$224 million in

2006. Financial results were hurt by a significant increase in

its nonperforming assets and an increase in loan-loss

provisions. S&P thinks the company is being relatively

conservative with its nonperforming loans, which include a

significant amount of loans classified as substandard, but not

more than 90 days in arrears.

While net credit losses to date have been low and manageable,

there remains a high degree of uncertainty regarding future loss

severities of the nonperforming assets given the weakened local

economy. S&P expects operating performance to remain challenged

in the near term.

The company maintains a weak competitive position in Puerto

Rico, despite its long history on the island. The company has a

small footprint of branches and has only experienced modest

deposit growth in recent years. The business mix is not well

diversified, with business lines that focus on commercial and

retail banking. In addition, intense competition in Puerto Rico

among several formidable competitors has negatively affected

margins.

Doral Financial has adequate liquidity and is not facing any

near-term funding obligations. Specifically, the banks' ratio

of loans to deposits declined significantly in recent years as

did the bank's reliance on repurchase agreements as a funding

source. However, the company remains heavily dependent on

brokered deposits.

The company has several accounting deficiencies, which S&P views

negatively in its rating assessment. Specifically, the company

has noted several material weaknesses, including not maintaining

effective controls over the reporting process. However, S&P

thinks that the company is working hard to remediate these

deficiencies and expect substantial progress to be made during

the next several quarters.

The stable outlook includes S&P's expectation that credit

quality will deteriorate further given credit deterioration in

its loan portfolio and the weak economic environment. However,

the rating agency thinks the bank has sufficient shareholders'

capital to absorb a significant increase in loan losses, which

the agency expects given the precipitous rise in nonperforming

loans. The ratings or outlook could be revised downward if

credit quality deteriorates beyond S&P's expectations, a

significant amount of loans are purchased, or capital is

returned to equity shareholders. Conversely, the ratings or

outlook could be revised upward if loan losses prove manageable

and if the company is successful in curing accounting

deficiencies.

Based in New York City, Doral Financial Corp. (NYSE: DRL) --

http://www.doralfinancial.com/-- is a diversified financial

services company engaged in mortgage banking, banking,

investment banking activities, institutional securities and

insurance agency operations. Its activities are principally

conducted in Puerto Rico and in the New York City metropolitan

area. Doral is the parent company of Doral Bank, a Puerto Rico

based commercial bank; Doral Securities, a Puerto Rico based

investment banking and institutional brokerage firm; Doral

Insurance Agency Inc. and Doral Bank FSB, a federal savings bank

based in New York City.

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

V E N E Z U E L A

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

PETROLEOS DE VENEZUELA: Debt Up 449% in 2007, 28.5% of Assets

-------------------------------------------------------------

El Universal relates that Petroleos de Venezuela SA's debt

increased 449% to US$13.09 billion in 2007, 28.5% of the

companany's assets.

According to El Universal, Petroleos de Venezuela's "sharpening

indebtedness over the last 12 months drastically changed the

company's accounts to the extent that its debt to net worth

ratio at the end of 2007 was 28.5%, the highest in the last

decade."

El Universal notes that Petroleos de Venezuela's consolidated

debt was US$16 billion last year, comprising:

-- US$13.12 billion in long-term debt, and

-- US$2.87 billion in current debt.

The report says that most of the long-term debt "was contracted"

by Petroleos de Venezuela in Venezuela, where it issued

US$7.5 billion in debt bonds in April 2007.

Petroleos de Venezuela's President and Venezuelan Oil Minister

Rafael Ramirez emphasized that the firm's net worth increased

5.5% to US$56.06 billion in 2007, compared to US$53.10 billion

in 2006. However, the increase was "significantly below the

expansion of debt in the same period," El Universal states.

Petroleos de Venezuela SA -- http://www.pdv.com/-- is

Venezuela's state oil company in charge of the development of

the petroleum, petrochemical and coal industry, as well as

planning, coordinating, supervising and controlling the

operational activities of its divisions, both in Venezuela and

abroad. The company has a commercial office in China.

PDVSA is one of the top exporters of oil to the US with proven

reserves of 77.2 billion barrels of oil -- the most outside the

Middle East -- and about 150 trillion cu. ft. of natural gas.

PDVSA's exploration and production take place in Venezuela, but

the company also has refining and marketing operations in the

Caribbean, Europe, and the US.

* * *

As of Feb. 14, 2008, Fitch Ratings held Petroleos de Venezuela

SA's long-term issuer default rating and local currency long

term issuer default rating at BB-. Fitch said the ratings

outlook is negative.

===========

X X X X X X

===========

* Moody's Sees Neg. Outlook for Global Paper & Forest Products

--------------------------------------------------------------

The credit conditions of the paper and forest products industry

are expected to worsen as demand for most paper and forest

products will continue to decline amid rising costs and general

economic weakness, says Moody's Investors Service in its new

report. The rating agency's report examined the credit

implications of trends and developments in the key segments of

the paper and forest products industry globally. The overall

global credit outlook is negative, based primarily on the

sector's twin problems of declining demand and increasing costs.

"These problems are most pronounced in the mature markets of

North America and Europe where the appetite for most paper and

forest products is lessening and companies face increasing

energy, chemical, transportation and fiber costs," says Moody's

lead paper and forest products analyst and co-author of the

report, Ed Sustar.

While most global market pulp producers should perform

reasonably well over the next 12 to 18 months, many companies

in the printing and writing paper, paper packaging and wood-

based building products sectors are expected to experience

negative rating pressure, says Moody's.

According to Moody's, reduced sawmill activity will continue to

pressure fiber availability and cost as the United States

housing markets remain depressed, further dampening the need for

building products. "To offset weak demand and escalating costs,

supply will need to be significantly curtailed to improve

product pricing," says Mr. Sustar. Longer term, the increasing

cost of fiber will continue to shift production capacity to

regions that can supply and process it at the lowest cost.

"In addition to declining demand and escalating input costs,

liquidity concerns, foreign exchange impact and mergers &

acquisitions will continue to fuel negative rating actions,"

says Mr. Sustar. The ongoing credit-market turmoil is expected

to increase refinancing risk, especially for companies with

near-term debt maturities or minimal financial covenant

flexibility, says Moody's.

The strong Canadian dollar, Brazilian real and Chilean peso

create negative rating pressure for regional producers based in

those countries. While the consolidation trend in the paper and

forest products sector is expected to continue, the pace of

corporate transformations through both private-equity

transactions and merger and acquisition activity may moderate as

financing costs escalate.

Despite the changing dynamics in the paper and forest products

sector, the most important determinants of a company's

profitability and credit worthiness are demand, pricing and cost

position. Over the past year, approximately 75% of rating

actions in the paper and forest products industry have been

negative, constituting either outright downgrades or negative

outlook changes.

***********

S U B S C R I P T I O N I N F O R M A T I O N

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Copyright 2008. All rights reserved. ISSN 1529-2746.

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