TCRLA_Public/080425.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

             Friday, April 25, 2008, Vol. 9, No. 82

                            Headlines


A R G E N T I N A

ALITALIA SPA: To Receive EUR300 Million Bridging Loan from Italy
CHRYSLER LLC: In Talks with Fiat SpA Over Alfa Romeo Production
BELKI SRL: Proofs of Claim Verification Deadline Is June 23
COMPANIA INMOBILIARIA: Claims Verification Deadline is July 1
EDILTEL SRL: Trustee to Verify Proofs of Claim Until July 21

FUTURE SA: Proofs of Claim Verification Deadline is May 30
MANRIQUE SRL: Trustee to Verify Proofs of Claim Until May 30
MAR YI: Files for Reorganization in Buenos Aires Court
RED PREVER: Proofs of Claim Verification Deadline is May 23
SANFOR SALUD: Trustee to File Individual Reports on July 8

SUR AMERICA: Trustee to Verify Proofs of Claim Until June 26


B E R M U D A

CENTRAL EUROPEAN: To Issue 1st Quarter 2008 Earnings on April 30
CENTRAL EUROPEAN: S&P Rates US$475MM Senior Convertible Notes BB
CHEVRON OVERSEAS: Proofs of Claim Filing Deadline is May 7
CHEVRON OVERSEAS: Sets Final Shareholders Meeting for May 26
DSG TRADING: Proofs of Claim Filing is Until May 7

DSG TRADING: Sets Final Shareholders Meeting for April 28
DUAL-STRATEGY GUARANTEED: Proofs of Claim Filing is Until May 7
DUAL-STRATEGY GUARANTEED: Final Shareholders Meeting on April 30
G5 WORLD: Proofs of Claim Filing Deadline is May 8
G5 WORLD: Sets Final Shareholders Meeting for May 28

XL CAPITAL: Reports US$244.3MM Net Income in Qtr. Ended March 31


B R A Z I L

BANCO GMAC: Eyes Continued Increase in Leasing
EDITORA ABRIL: Moody's Gives Ba3 Local Currency Corporate Rating
MAGNESITA REFRATARIOS: Moody's Puts Ba1 Corporate Family Rating
NET SERVICOS: To Concentrate on Offering Bundled Services
SADIA SA: Shareholders OK Big Foods & Avicola Indust'l Purchase

UAL CORP: US$542 Mil. Pretax Loss Does Not Affect S&P's 'B' Rtg.


C A Y M A N  I S L A N D S

ACKDON GAMMA: Proofs of Claim Filing Deadline is May 1
BANK RAKYAT: To Present 1st Quarter 2008 Earnings on April 29
COURAGE HEDGED: Proofs of Claim Filing is Until May 1
COURAGE HEDGED US: Proofs of Claim Filing Deadline is May 1
F.Y. FUNDING: Proofs of Claim Filing is Until May 1

HYDRA VI: Proofs of Claim Filing Deadline is May 1
PARMALAT SPA: Factorit & Italease Settle Revocatory Suit
PARMALAT SPA: Selling Newlat SpA to TMT Finance
PARMALAT SPA: NJ Judge Dismisses Most Claims Versus Citigroup
PARMALAT SPA: Court Closes Chapter 11 Cases of Former U.S. Units

PARMALAT SPA: Trustee Seeks 3-Year Extension of Farmland Trust


C H I L E

EASTMAN KODAK: S&P Holds B+ Corporate Credit Rating
METHANEX CORP: Earns US$65.4 Million in 2008 First Quarter


C O L O M B I A

GMAC LLC: Moody's May Further Cut B2 Rating After Review


C O S T A  R I C A

SIRVA INC: Court Extends Confirmation Hearing for Two Days


D O M I N I C A N  R E P U B L I C

BASIC ENERGY: Approves US$3 Billion Merger Deal with Grey Wolf
BASIC ENERGY: Grey Wolf Merger Deal Cues S&P's Positive Watch


E C U A D O R

BANCO PICHINCHA: Extends Consent Solicitation to April 29


G R E N A D A

AMERICAN AIRLINES: To Add Miami-Grenada Non-Stop Flight Schedule


J A M A I C A

AIR JAMAICA: Gov't to Launch Int'l Bidding Process for Airline
AIR JAMAICA: To Launch Code Share Pact with Asian Airlines
AIR JAMAICA: Contractor General to Investigate Heathrow Slots
CASH PLUS: Defense Lawyers to Seek Bail for Carlos Hill Again


M E X I C O

AMERICAN AXLE: UAW Rejects Economic Offers; Firm Mulls Closures
ASARCO LLC: Grupo Mexico Has Poor Stewardship Record, Union Says
DESARROLLADORA HOMEX: 1Q 2008 Net Income Up 7.9% to MXN504.3Mil.
DIOMED HOLDINGS: Delivers Schedules of Assets and Liabilities
DIOMED HOLDINGS: Engages Wolf Greenfield as Special Counsel

FIAT SPA: Shows Interest in Acquiring Serb Car Maker Zastava


P E R U

FREEPORT-MCMORAN COPPER: Eyes US$6.5 Billion Operating Cash Flow
FREEPORT-MCMORAN COPPER: High Metal Prices Boost Firm's Profit


P U E R T O  R I C O

HORIZON LINES: Extends Walgreens Delivery Contract to Two Years
MUSICLAND HOLDING: Pursues US$145 Mil. in Damages From Best Buy
MUSICLAND HOLDING: Panel & H. Truesdell Agree to Replace Counsel
MUSICLAND HOLDING: Discloses Post-Confirmation Distributions
PATHEON INC: Undertakes Series of Events on Restructuring Plan

PATHEON INC: Moody's Holds B2 Rating; Changes Outlook to Neg.


U R U G U A Y

* URUGUAY: R&I Lifts Foreign Currency IDR to BB-; Outlook Stable


V I R G I N  I S L A N D S

PETROLEOS DE VENEZUELA: Output Totals 1.1 Bln. Barrels in 2007
PETROLEOS DE VENEZUELA: Takes Over Diques y Astilleros
PETROLEOS DE VENEZUELA: Selling Fuel Oil to Petrobras
PETROLEOS DE VENEZUELA: S&P Holds Long-Term Credit Rating at BB-


X X X X X X

* Caribbean Region Faces Big Challenges on US Slowdown, S&P Says
* Southwest Healthcare Transactions Conference Set on May 30

                         - - - - -


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

ALITALIA SPA: To Receive EUR300 Million Bridging Loan from Italy
----------------------------------------------------------------
The Italian government has approved a EUR300-million bridging
loan to Alitalia S.p.A. to keep it afloat and prevent it from
seeking bankruptcy protection, various reports say.

As reported in the TCR-Europe on April 22, 2008, the incoming
administration of Prime Minister-elect Silvio Berlusconi and the
outgoing government of current Prime Ministe Enrico Prodi have
initially agreed to provide a EUR150 million emergency financing
to Alitalia, which only had EUR170 million in cash and credit as
of March 31, 2008.

Finance Minister Tommaso Padoa-Schioppa was quoted by Bloomberg
News as saying that without the loan, Alitalia would have to
seek protection from creditors.

Mr. Prodi said Mr. Berlusconi asked him to raise the loan amount
to EUR300 million to allow more "time to put together and
organize possible alternative solutions," the Associated Press
reports.  Mr. Prodi noted that Alitalia has to repay the loan by
end of 2008.

                       State Aid Violation?

The European Commission, meanwhile, would review the financing
to Alitalia, whether it violates the European Union rule on
state aid, Bloomberg News says citing spokesman Michele Cercone.

Under EU's "one time, last time" principle, a company
beneficiary of a state aid cannot receive additional rescue or
restructuring funding within 10 years since its accepted
financial assistance.

AP quoted the Commission last week said Alitalia cannot receive
further aid until 2011, since it took fiscal assistance in 2001.

                         Italian Bidders

AirOne S.p.A., banks led by Intesa Sanpaolo S.p.A. and Italian
businessmen led by Mr. Berlusconi adviser Bruno Ermolli may form
a group to bid for Alitalia, Bloomberg News says, citing an
unsourced Il Messaggero report.

According to Il Messaggero, AirOne will own 40% of the bidding
vehicle, the banks will control 40% and Mr. Bruno's group will
hold 20%.

Mr. Berluconi has been insisting that an Italian consortium will
present a binding offer for Italy's 49.9% stake in Alitalia in
less than a month.

                         About Alitalia

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

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

Italian Finance Minister Tommaso Padoa-Schioppa had said that if
the sale to Air France fails, Alitalia may seek protection from
creditors and the government would appoint a special
commissioner to initiate bankruptcy proceedings.


CHRYSLER LLC: In Talks with Fiat SpA Over Alfa Romeo Production
---------------------------------------------------------------
Chrysler LLC has initiated talks with Fiat SpA over a possible
cooperation agreement under which Chrysler will produce the
Italian auto manufacturer's Alfa Romeo cars in its U.S.
Factories, Reuters reports, citing German newspaper
Handelsblatt.

The talks, Reuters says, is now in the advanced stage.

A Chrysler spokeswoman, however, dismissed the report as
speculation, saying "there could be other partnerships with
other carmakers," Reuters relates.

Chrysler earlier announced a production alliance with Japanese
automaker Nissan, the paper reveals.

As reported in the Troubled Company Reporter-Europe on March 27,
2008, Fiat entered into discussions with Detroit's auto
manufacturers on sharing production of Alfa Romeos in the U.S.

Fiat's chief executive officer Sergio Marchionne said that
production of Alfa cars will start by 2011 or 2012.  Meanwhile,
Alfa, which will start distributing and selling cars in the U.S.
cars next year, will have to absorb losses until production
starts with a partner.

Fiat had to manufacture in the U.S. because of the weakness of
the dollar against the euro.

Fiat is also preparing to transfer its Iveco division to the
U.S. along with the relaunched Fiat 500 compact car.

                            About Fiat

Turin, Italy-based Fiat SpA -- http://www.fiatgroup.com/--   
(BIT:F) is principally engaged in the design, manufacture and
sale of automobiles, trucks, wheel loaders, excavators,
telehandlers, tractors and combine harvesters.  Through its
subsidiaries, Fiat operates mainly in five business areas:
Automobiles, including sectors led by Maserati SpA, Ferrari SpA
and Fiat Group Automobiles SpA, which design, produce and sell
cars under the Fiat, Alfa Romeo, Lancia, Fiat Professional,
Abarth, Ferrari and Maserati brands; Agricultural and
Construction Equipment, which is led by Case New Holland Global
NV; Trucks and Commercial Vehicles, which is led by Iveco SpA;
Components and Production Systems, which includes the sectors
led by Magneti Marelli Holding SpA, Teksid SpA, Comau SpA and
Fiat Powertrain Technologies SpA, and Other Businesses, which
includes the sectors led by Fiat Services SpA, a publishing
house Editrice La Stampa SpA and an advertising agency
Publikompass SpA.

Outside Europe, the company has subsidiaries in the United
States, Japan, India, China, Mexico, Brazil and Argentina, among
others.

                         About Chrysler

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

                         *     *     *

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


BELKI SRL: Proofs of Claim Verification Deadline Is June 23
-----------------------------------------------------------
Marisa Gacio, the court-appointed trustee for Belki SRL's
bankruptcy proceeding, will be verifying creditors' proofs of
claim until June 23, 2008.

Ms. Gacio 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. 10, 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 Belki 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 Belki's accounting
and banking records will be submitted in court.

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

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

The debtor can be reached at:

           Belki SRL
           Cochabamba 1599
           Buenos Aires, Argentina

The trustee can be reached at:

           Marisa Gacio
           San Martin 793
           Buenos Aires, Argentina


COMPANIA INMOBILIARIA: Claims Verification Deadline is July 1
-------------------------------------------------------------
Ruben Acosta, the court-appointed trustee for Compania
Inmobiliaria Metropolitana e Interior SA's bankruptcy
proceeding, will be verifying creditors' proofs of claim until
July 1, 2008.

Mr. Acosta will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 15 in Buenos Aires, with the assistance of Clerk
No. 30, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections
and challenges that will be raised by Compania Inmobiliaria 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 Compania
Inmobiliaria's accounting and banking records will be submitted
in court.

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

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

The debtor can be reached at:

           Compania Inmobiliaria Metropolitana e Interior SA
           Tucuman 825
           Buenos Aires, Argentina

The trustee can be reached at:

           Ruben Acosta
           Tucuman 1585
           Buenos Aires, Argentina


EDILTEL SRL: Trustee to Verify Proofs of Claim Until July 21
------------------------------------------------------------
Maria Ezequiela Festugato, the court-appointed trustee for
Ediltel SRL's bankruptcy proceeding, will present the validated
claims as individual reports in the National Commercial Court of
First Instance in Buenos Aires on July 21, 2008.

Ms. Festugato be verifying creditors' proofs of claim until
June 9, 2008.  Ms. Festugato will submit to the court a general
report containing an audit of Ediltel's accounting and banking
records on Oct. 1, 2008.

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

The debtor can be reached at:

           Ediltel SRL
           Marcelo T. de Alvear 1261
           Buenos Aires, Argentina

The trustee can be reached at:

           Maria Festugato
           Lavalle 1667
           Buenos Aires, Argentina


FUTURE SA: Proofs of Claim Verification Deadline is May 30
----------------------------------------------------------
Francisco Rogelio Cano, the court-appointed trustee for
The Future S.A.'s bankruptcy proceeding, will be verifying
creditors' proofs of claim until May 30, 2008.

Mr. Cano will present the validated claims in court as
individual reports on July 15, 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 The Future 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 The Future's
accounting and banking records will be submitted in court on
Sept. 9, 2008.

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

The debtor can be reached at:

           The Future S.A.
           Del Barco Centenera 3179
           Buenos Aires, Argentina

The trustee can be reached at:

           Francisco Rogelio Cano
           Uruguay 618
           Buenos Aires, Argentina


MANRIQUE SRL: Trustee to Verify Proofs of Claim Until May 30
------------------------------------------------------------
The court-appointed trustee for Manrique S.R.L.'s reorganization
proceeding, will be verifying creditors' proofs of claim until
May 30, 2008.

The trustee will present the validated claims in court as  
individual reports on July 29, 2008.  The National Commercial
Court of First Instance in Santa Fe 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 Manrique 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 Manrique's accounting  
and banking records will be submitted in court on Sept. 9, 2008.

Creditors will vote to ratify the completed settlement plan  
during the assembly on March 6, 2009.

The debtor can be reached at:

        Manrique S.R.L.
        Jujuy 2381, Villa Gobernador Galvez
        Santa Fe, Argentina


MAR YI: Files for Reorganization in Buenos Aires Court
------------------------------------------------------
Mar Yi S.A. has requested for reorganization approval after
failing to pay its liabilities.

The reorganization petition, once approved by the court, will
allow Mar Yi 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 in Buenos Aires.  

The debtor can be reached at:

                     Mar Yi S.A.
                     San Martin 201 Piso 6 Dto. 1
                     Buenos Aires, Argentina


RED PREVER: Proofs of Claim Verification Deadline is May 23
-----------------------------------------------------------
Elba Gabriela Hirigoity, the court-appointed trustee for
Red Prever S.A.'s bankruptcy proceeding, will be verifying
creditors' proofs of claim until May 23, 2008.

Ms. Hirigoity 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 Red Prever
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 Red Prever's
accounting and banking records will be submitted in court.

Infobae didn't state the reports submission deadlines.

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

The debtor can be reached at:

           The Future S.A.
           Del Barco Centenera 3179
           Buenos Aires, Argentina

The trustee can be reached at:

           Elba Gabriela Hirigoity
           Avenida Cordoba 1388
           Buenos Aires, Argentina


SANFOR SALUD: Trustee to File Individual Reports on July 8
----------------------------------------------------------
Jorge Hugo Basile, the court-appointed trustee for Sanfor Salud
SA's reorganization proceeding, will present the validated
claims as individual reports in the National Commercial Court of
First Instance in Buenos Aires on July 8, 2008.  

Mr. Basile will be verifying creditors' proofs of claim until
May 27, 2008.  He will present in court a general report
containing an audit of Sanfor Salud's accounting and banking
records on Sept. 1, 2008.

Creditors will vote to ratify the completed settlement plan  
during the assembly on March 3, 2009.

The debtor can be reached at:

        Sanfor Salud SA
        Pasaje King 348
        Buenos Aires, Argentina

The trustee can be reached at:

        Jorge Hugo Basile
        Pte. J. E. Uriburu 782
        Buenos Aires, Argentina


SUR AMERICA: Trustee to Verify Proofs of Claim Until June 26
------------------------------------------------------------
Jorge Oscar Abrego, the court-appointed trustee for Sur America
Palangre S.A.'s reorganization proceeding, will be verifying
creditors' proofs of claim until June 26, 2008.

Mr. Abrego will present the validated claims in court as  
individual reports on Aug. 22, 2008.  The National Commercial
Court of First Instance in Mar del Plata, Buenos Aires, will
determine if the verified claims are admissible, taking into
account the trustee's opinion, and the objections and challenges
that will be raised by Sur America 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 Sur America's
accounting and banking records will be submitted in court.

Infobae didn't state the submission deadline for the general
report.

Creditors will vote to ratify the completed settlement plan  
during the assembly on March 6, 2009.

The debtor can be reached at:

        Sur America Palangre S.A.
        Moises Lebensohn 5835, Mar del Plata
        Buenos Aires, Argentina

The trustee can be reached at:

        Jorge Oscar Abrego
        Daprotis 6125, Mar del Plata
        Buenos Aires, Argentina



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

CENTRAL EUROPEAN: To Issue 1st Quarter 2008 Earnings on April 30
----------------------------------------------------------------
Central European Media Enterprises Ltd. will release its first
quarter 2008 financial results before United States market hours
on April 30, 2008.

The company will also host a teleconference to discuss its first
quarter 2008 results on April 30, 2008, at 10:00 a.m. New York
time (3:00 p.m. London and 4:00 p.m. Prague time).  The
teleconference will refer to presentation slides which will be
available on Central European Media's web site at
http://www.cetv-net.comprior to the call.

To access the teleconference, U.S. and International callers may
dial +1 973-321-1024 ten minutes prior to the start time and
reference passcode: 44056751. The conference call will be
broadcast live via http://www.cetv-net.com.

A replay of the teleconference will be available for two weeks
following the call and can be accessed by dialing +1 800-642-
1687 for U.S. callers and 1-706-645-9291 for International
callers, passcode: 44056751.  A digital audio replay in mp3
format will also be archived on the company's web site.

Based in Bermuda, Central European Media Enterprises Ltd.,  is a
TV broadcasting company with leading networks in six Central and
Eastern European countries.  Launched in 1994, the company and
its partners now operate 16 channels in six countries, including
TV Nova, Nova Cinema and Galaxie Sport in the Czech Republic;
PRO TV, PRO Cinema, Pro International, Sport.ro, MTV and Acasa
in Romania; Nova TV in Croatia, TV Markiza in the Slovak
Republic; POP TV and Kanal A in Slovenia; and Studio 1+1, Kino
and Citi in Ukraine.  For the year ended Dec. 31, 2007, the
company generated segment revenues of US$840 million and segment
EBITDA of US$320 million.  Central European Media is traded
on the NASDAQ and the Prague Stock Exchange under the ticker
symbol "CETV".


CENTRAL EUROPEAN: S&P Rates US$475MM Senior Convertible Notes BB
----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB' debt rating
to the US$475 million senior secured convertible notes due 2013
issued by Bermuda-based emerging markets TV broadcaster, Central
European Media Enterprises Ltd. in March 2008.  The long-term
corporate credit rating was affirmed at 'BB'.  The outlook is
stable.
     
At the same time, S&P raised the debt rating on both Central
European Media's EUR245 million and EUR150 million floating-rate
notes due, respectively, in 2012 and 2014 to 'BB' from the
previous 'BB-', in line with the corporate credit rating,
following a review of the collateral and the evolution of
structural subordination aspects within the group's capital
structure.
     
With fully adjusted total debt to EBITDA at about 2.3x at the
end of December 2007, the ratings on Central European Media
remain constrained by the group's acquisition-led financial
policy and by its high concentration of profitability in a
single TV channel in the Czech Republic and in its Romanian TV
channels.  The ratings are also constrained by the cyclical
nature of the TV advertising markets in which the group operates
and the potential for regulatory and political interference.
     
These factors are mitigated to a significant degree by Central
European Media's market-leading positions in four of the six
Eastern European countries in which it is present, good short-
term revenue visibility, and its position as a producer of
established, locally produced content.  In addition, the rating
continues to reflect good rates of growth in the group's TV
advertising markets and increasing equity control of operations
in all markets.  This is supported by the company's recently
announced intention to buy out its partners' 30% equity
interests in Ukrainian broadcaster Studio 1+1 for US$219.6
million, while having the right to acquire the remaining 10%
through a put and call arrangement.
     
"The stable outlook reflects our expectation that the level of
operating maturity of CME's core TV broadcasting assets will
continue to translate into EBITDA growth and healthy operating
cash generation," said S&P's credit analyst Manuela Gabetta.  To
maintain the 'BB' rating, S&P expects that the group will use an
adequate mixture of debt and equity to support its expansion
into more risky markets.
     
"We also expect that CME will moderate distributions to
shareholders for as long as it remains on an acquisitive path,"
said Ms. Gabetta.  The ratio of fully adjusted total debt to
EBITDA is expected to strengthen on back on cash flow generation
and remain comfortably below 4x on an ongoing basis.
     
The ratings would come under immediate pressure if any
acquisition target takes financial ratios outside the stated
thresholds for a protracted period, or if the group's largest TV
stations underperform.

Rating upside is currently restricted by Central European Media
Enterprises Ltd.'s continuing investments in volatile markets
such as Ukraine.

Based in Bermuda, Central European Media Enterprises Ltd.,  is a
TV broadcasting company with leading networks in six Central and
Eastern European countries.  Launched in 1994, the company and
its partners now operate 16 channels in six countries, including
TV Nova, Nova Cinema and Galaxie Sport in the Czech Republic;
PRO TV, PRO Cinema, Pro International, Sport.ro, MTV and Acasa
in Romania; Nova TV in Croatia, TV Markiza in the Slovak
Republic; POP TV and Kanal A in Slovenia; and Studio 1+1, Kino
and Citi in Ukraine.  For the year ended Dec. 31, 2007, the
company generated segment revenues of US$840 million and segment
EBITDA of US$320 million.  Central European Media is traded
on the NASDAQ and the Prague Stock Exchange under the ticker
symbol "CETV".


CHEVRON OVERSEAS: Proofs of Claim Filing Deadline is May 7
----------------------------------------------------------
Chevron Overseas Petroleum (Vietnam) Limited's creditors have
until May 7, 2008, to prove their claims to Gary R. Pitman, 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.

Chevron Overseas' shareholder decided on April 18, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

                 Gary R. Pitman
                 Chevron House
                 11 Church Street
                 Hamilton, HM DX, Bermuda


CHEVRON OVERSEAS: Sets Final Shareholders Meeting for May 26
------------------------------------------------------------
Chevron Overseas Petroleum (Vietnam) Limited will hold its final
general meeting on May 26, 2008, at 9:30 a.m. at Chevron House,
Church Street, Hamilton, Bermuda.

These matters will be taken up during the meeting:

   -- receiving an account showing the manner in which
      the winding-up of the company has been conducted
      and its property disposed of and hearing any
      explanation that may be given by the liquidator;

   -- determination by resolution the manner in
      which the books, accounts and documents of the
      company and of the liquidator shall be
      disposed; and

   -- passing of a resolution dissolving the
      company.

Chevron Overseas' shareholder decided on April 18, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

                 Gary R. Pitman
                 Chevron House
                 11 Church Street
                 Hamilton, HM DX, Bermuda


DSG TRADING: Proofs of Claim Filing is Until May 7
--------------------------------------------------
DSG Trading Limited's creditors are given until May 7, 2008, to
prove their claims to Beverly Mathias, 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.

DSG Trading's shareholders agreed on April 21, 2008, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.

The liquidator can be reached at:

      Beverly Mathias
      c/o Argonaut Limited
      Argonaut House, 5 Park Road
      Hamilton HM O9, Bermuda


DSG TRADING: Sets Final Shareholders Meeting for April 28
---------------------------------------------------------
DSG Trading Limited will hold its final general meeting on
April 28, 2008, at 9:30 a.m. at Argonaut Limited, Argonaut
House, 5 Park Road, Hamilton HM O9, Bermuda.

These matters will be taken up during the meeting:

   -- receiving an account showing the manner in which
      the winding-up of the company has been conducted
      and its property disposed of and hearing any
      explanation that may be given by the liquidator;

   -- determination by resolution the manner in
      which the books, accounts and documents of the
      company and of the liquidator shall be
      disposed; and

   -- passing of a resolution dissolving the
      company.

DSG Trading's shareholders agreed on April 21, 2008, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.

The liquidator can be reached at:

      Beverly Mathias
      c/o Argonaut Limited
      Argonaut House, 5 Park Road
      Hamilton HM O9, Bermuda


DUAL-STRATEGY GUARANTEED: Proofs of Claim Filing is Until May 7
---------------------------------------------------------------
Dual-Strategy Guaranteed Fund Limited's creditors are given
until May 7, 2008, to prove their claims to Beverly Mathias, 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.

Dual-Strategy Guaranteed's shareholders agreed on
April 21, 2008, to place the company into voluntary liquidation
under Bermuda's Companies Act 1981.

The liquidator can be reached at:

      Beverly Mathias
      c/o Argonaut Limited
      Argonaut House, 5 Park Road
      Hamilton HM O9, Bermuda


DUAL-STRATEGY GUARANTEED: Final Shareholders Meeting on April 30
----------------------------------------------------------------
Dual-Strategy Guaranteed Fund Limited will hold its final
general meeting on April 30, 2008, at 9:30 a.m. at Argonaut
Limited, Argonaut House, 5 Park Road, Hamilton HM O9, Bermuda.

These matters will be taken up during the meeting:

   -- receiving an account showing the manner in which
      the winding-up of the company has been conducted
      and its property disposed of and hearing any
      explanation that may be given by the liquidator;

   -- determination by resolution the manner in
      which the books, accounts and documents of the
      company and of the liquidator shall be
      disposed; and

   -- passing of a resolution dissolving the
      company.

Dual-Strategy Guaranteed's shareholders agreed on
April 21, 2008, to place the company into voluntary liquidation
under Bermuda's Companies Act 1981.

The liquidator can be reached at:

      Beverly Mathias
      c/o Argonaut Limited
      Argonaut House, 5 Park Road
      Hamilton HM O9, Bermuda


G5 WORLD: Proofs of Claim Filing Deadline is May 8
--------------------------------------------------
G5 World Multi Par T Limited's creditors are given until
May 8, 2008, to prove their claims to Jennifer Y. Fraser, 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.

G5 World's shareholders agreed on April 18, 2008, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.

The liquidator can be reached at:

      Jennifer Y. Fraser
      Canon's Court, 22 Victoria Street
      Hamilton, Bermuda


G5 WORLD: Sets Final Shareholders Meeting for May 28
----------------------------------------------------
G5 World Multi Par T Limited will hold its final general meeting
on May 28, 2008, at 9:00 a.m. at Canon's Court, 22 Victoria
Street, Hamilton, Bermuda.

These matters will be taken up during the meeting:

   -- receiving an account showing the manner in which
      the winding-up of the company has been conducted
      and its property disposed of and hearing any
      explanation that may be given by the liquidator;

   -- determination by resolution the manner in
      which the books, accounts and documents of the
      company and of the liquidator shall be
      disposed; and

   -- passing of a resolution dissolving the
      company.

G5 World's shareholders agreed on April 18, 2008, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.

The liquidator can be reached at:

      Jennifer Y. Fraser
      Canon's Court, 22 Victoria Street
      Hamilton, Bermuda


XL CAPITAL: Reports US$244.3MM Net Income in Qtr. Ended March 31
----------------------------------------------------------------
XL Capital Ltd. reported net income for the three months ended
March 31, 2008 of US$244.3 million, compared with US$562.5
million for the same period in 2007.  The reduction in net
income is due primarily to the following:

   -- A decrease in net income from investment affiliates of
      US$107.1 million
   -- Net realized losses on investments of US$102.3 million, as
      compared to a gain of US$9.3 million in the prior year
      quarter
   -- A decrease in underwriting profit from Property and
      Casualty operations of US$52.4 million
   -- An increase in foreign exchange losses of US$44.2 million
   -- A decrease in net income from financial operating
      affiliates of US$39.6 million

"Net income excluding net realized gains and losses" for the
first quarter of 2008 was US$276.9 million compared with
US$540.0 million for the prior year quarter.

Annualized return on ordinary shareholders' equity was 9.9% and
22.7% for the three months ended March 31, 2008 and 2007,
respectively.  Return on ordinary shareholders' equity, based on
net income excluding net realized gains and losses was 12.9% and
22.3% for the three months ended March 31, 2008 and 2007,
respectively.

Commenting on the current quarter results, President, Chief
Executive Officer and Acting Chairman Brian M. O'Hara said:
"Although XL is steadily navigating through some extremely
difficult global credit market conditions, which is reflected in
our lower investment performance relative to the outstanding
results in the prior year quarter, we have still achieved
another solid performance from our Insurance, Reinsurance, and
Life operations."

Headquartered in Bermuda, XL Capital Ltd. --  
http://www.xlcapital.com/-- writes liability insurance and  
reinsurance worldwide, specializing in low-frequency, high-
severity risks from riots to natural disasters.  The company
writes policies through numerous subsidiaries, many of them
offshore, and also manages a Lloyd's of London syndicate.  XL's
coverage includes general and executive liability, property, and
political risk insurance.  Its reinsurance covers property,
aviation, energy, nuclear accident, and professional indemnity.

                         *     *     *

As reported in the Troubled Company Reporter-Latin America on
April 3, 2008, Fitch Ratings downgraded XL Capital Ltd.'s Class
A1 to 'BB' from 'A' and Class A2 to 'BB' from 'A' and removed it
from Rating Watch Negative.

Fitch also downgraded XLCA's Insurer Financial strength
rating to 'BB' and removed the IFS from Rating Watch Negative.



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

BANCO GMAC: Eyes Continued Increase in Leasing
----------------------------------------------
Banco GMAC S.A.'s officials told journalists that the bank
expects a continued increase in leasing to help expand total
lending by 20% in 2008.

Banco GMAC said in its 2007 financial statements that it ended
2007 with BRL3.90 billion in its loan book, which is 27.3%
higher compared to 2006.  Leasing operations rose 220% to
BRL1.21 billion in 2007.

Leasing would increase at the same rate this year and eventually
represent 70% of GMAC's loan portfolio, with consumer loans
accounting for 30%, BNamericas says, citing Banco GMAC's Sales
Director Gunnar Murillo.

Mr. Murillo commented to BNamericas, "The appeal of leasing a
vehicle comes from IOF [Imposto Sobre Operacoes Financeiras]."

BNamericas relates that the government increased the IOF
financial transactions tax by 0.38% on new loans in
January 2008, including car loans.  Leasing operations were
exempted.  The central bank set up reserve requirements on cash
deposits by leasing firms, beginning at 5% in May 2008 and
increasing to 25% by January 2009.

Mr. Murillo told BNamericas that Banco GMAC will "place more
emphasis on the smart buy program, which offers lower monthly
payments and a final balloon payment," to boost lending in 2008.

Mr. Murillio commented to BNamerica, "We had a really good first
quarter, well within our objectives."

Vehicle leasing and loans increased 44.9% to BRL117 billion in
February 2008, compared to the same time in 2007, leasing rose
96.4% to BRL71.8 billion, BNamericas says, citing figures from
trade association of automaker finance companies Anef.

Mr. Murillo told Bnamericas that individual borrowers represent
85% of GMAC's portfolio while commercial borrowers represent
15%.

Meanwhile, Michael Kimmel will take command of Banco GMAC in
May, BNamericas adds.

Banco GMAC is headquartered in Sao Paulo, Brazil.  As of
September 2007, Banco GMAC reported total assets of BRL5.47
billion and equity of BRL818.28 million.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 11, 2008, Moody's Investors Service downgraded Banco GMAC
S.A.'s global long-term local and foreign currency deposit
ratings to B1 from Ba3.  Moody's said the outlook remains
negative.


EDITORA ABRIL: Moody's Gives Ba3 Local Currency Corporate Rating
----------------------------------------------------------------
Moody's Investors Service has assigned Ba3 and A3.br local
currency and Brazil National Scale corporate family ratings to
Editora Abril S.A.  The rating outlook is stable.  With this
action, Moody's is reinitiating coverage of Editora Abril after
all previous ratings were withdrawn in January 2006.

"The ratings are supported by Editora Abril's dominant position
within the Brazilian magazine market, its valuable brand
portfolio, the company and its parent, Abril S.A.'s consistently
improving leverage and coverage ratios over the past three
years, as well as the benefits of more sustainable growth in
Brazil's advertising market, which has been driven by a
consistent expansion of Brazilian consumer real income," says
Moody's analyst Soummo Mukherjee.

The ratings assigned to Editora Abril also reflect the
significant contribution to revenues of cyclical advertising
(40% of net revenues), the seasonality in Editora Abril's
business, and the lack of transparency in the company's
financial disclosures, as well as its complex ownership
structure, with a high level of intercompany transactions.

Editora Abril's Ba3 local currency corporate family rating
reflects its global default and loss expectation, while the
A3.br national scale rating reflects the standing of Editora
Abril's credit quality relative to its domestic peers.  Issuers
or issues rated A3.br present above-average creditworthiness
relative to other domestic issuers.

The main subsidiary of the Abril group, which is controlled by
the Civita family, Editora Abril is the leading magazine
publishing and printing company in Brazil, holding a 53% market
share of the country's total magazine circulation, 51% of its
total magazine subscriptions, and 48% of its total magazine
advertising market.  This dominance is an important support to
the rating.

Moody's views the substantial contribution in terms of revenues
and EBITDA from Editora Abril's weekly magazine, Veja, as posing
concentration risk to the company.  This risk is, however,
mitigated to some extent by Veja's historic dominant market
share in the Brazilian magazine market.

Editora Abril's dominant market position supported by its strong
brand and editorial quality, as well as a valuable portfolio
that covers all segments drove strong subscriber growth in 2007,
closing out the year with 3.3 million subscriptions, up 4.4%
over 2006.  In 2007 the company also implemented a cost
reduction program that led to permanent cost savings of
approximately BRL60 million and transferred its lower-margin
distribution services company, Dinap, from Editora Abril to a
different subsidiary of Abril S.A., Treelog S.A. Logística e
Distribuição. These factors associated with a stronger Real,
allowed Editora Abril to improve its EBITDA margin to 18.9% in
2007 from 15.8% in 2006.  Going forward Moody's expects Editora
Abril to keep generating sustainable and further improved
operating margins based on the positive trends for both
advertising market and subscriptions sales and on the
maintenance of cost control discipline.

In October 2006, Abril S.A. entered into an agreement with
Telecomunicaçoes de Sao Paulo S.A., the Brazilian fixed-line
subsidiary of Spain's Telefonica S.A., to sell the totality of
its Multichannel Multipoint Distribution Service (MMDS)
operations, 19.9% of cable TV operations in Sao Paulo and a 49%
stake in the rest of its cable TV operations, within the 19.9%
limit for fixed line company provider in Sao Paulo and within
the 49% limit for foreign investor control allowed by the legal
framework for the cable TV industry in Brazil.  In July and in
November 2007, regulatory agency Anatel approved the sale of the
MMDS operations and the minority stake in the cable TV business
respectively.

Editora Abril had received BRL163.9 million in net proceeds from
the transaction as of year-end 2007.  The receipt of part of the
proceeds has significant contributed to an improved liquidity
and leverage profile at the company.  Total debt adjusted to
incorporate refinanced taxes and intercompany liabilities
amounted to BRL923 million in 2007, with BRL90.2 million due in
the next twelve months.  Editora Abril`s had cash and cash
equivalents of BRL238 million as of year-end 2007, sufficient to
cover all short term debt maturities.

Editora Abril's EBIT/Gross Interest Expense coverage ratio has
increased to 2.2 times in 2007 in comparison to 1.4 times in
2006.  This improvement was driven by lower interest costs,
mainly as a result of a contractual reduction in the interest
coupon on its privately placed debentures and by higher
operating margins.

Over the last several years the Abril group has made significant
efforts to improve the group's corporate governance, including
creating a board of directors and a board of executive officers
to manage the group's activities and by adding three independent
members to the board.  The rating is somewhat constrained by the
fact that the company does not disclose quarterly cash flow
statements.

The stable outlook reflects Moody's expectation that Editora
Abril will be able to maintain its dominant position in the
Brazilian magazine market, while maintaining sales growth and
relatively stable operating margins.

Further upward movement in Editora Abril's rating would require
the completion of the company's restructuring plans with
evidence that the company is ring-fenced from the rest of Abril
S.A.'s business and more clarity on the expected use of
intercompany transactions.  A positive rating action would also
require improvement in financial disclosure standards, including
quarterly cash flow statements.

Editora Abril's rating would come under downward pressure if the
company experiences a consistent deterioration in market-share,
operating performance or credit metrics, such that Total
Debt/EBITDA increases to above 3.5 times or EBIT/Gross Interest
Expense drops below 2.0 times on a prolonged basis.  A downgrade
could also be driven by the group's failure to simplify its
corporate structure or reduce its reliance on intercompany
transactions.

Based in Sao Paulo, Brazil, Editora Abril S.A. --
http://www.abril.com.br/br/-- is the largest magazine publisher  
in Brazil, with approximately 3.3 million subscriptions and net
revenues of BRL1.9 billion (approximately US$957 million) in
2007.  It publishes and prints a wide selection of consumer
magazines, including Veja, the fourth best selling weekly news
magazine in the world.


MAGNESITA REFRATARIOS: Moody's Puts Ba1 Corporate Family Rating
---------------------------------------------------------------
Moody's Investors Service assigned corporate family ratings of
Ba1 on its global scale and Aa2.br on its Brazilian national
scale to Magnesita Refratarios S.A.  The rating outlook is
stable.

The Ba1 rating takes into consideration Magnesita Refratarios'
dominant position as Brazil's largest supplier of refractories
mainly to the steel and cement industries, supported by long-
standing client relationships and significant import barriers.  
In addition, the rating incorporates the company's healthy
operating margins deriving from globally competitive production
costs thanks largely to a high level of vertical integration and
efficient logistics.  Moody's expects that the company will
benefit from the cost-driven management philosophy under
implementation by the new controlling owners.  The rating is
also supported by the large size and good quality of the
company's mineral reserves and high level of electricity self-
sufficiency, in addition to Moody's view of growth perspectives
for the refractories industry over the near term based on
substantive announced investments in steel and cement capacity
expansion in Brazil.

The company's Ba1 rating is constrained by its relative small
size, its substantive client concentration and low geographic
diversity.  Its moderately high leverage is in part mitigated by
its sound liquidity position and strong cash flows.  
Uncertainties related to the company's internationalization and
expansion plans are additional constraining factors for the
rating.  Magnesita Refratarios' good corporate governance
reflects its adherence to Bovespa's Novo Mercado, with
expectations of transparency improvements going forward.

While the Ba1 global scale rating reflects the global default
and loss expectation of Magnesita Refratarios, the Aa2.br
national scale rating reflects the standing of its credit
quality relative to other domestic issuers.

The stable outlook reflects Moody's expectation that Magnesita
Refratarios will continue to benefit from a leadership position
to support superior operating margins relative to international
peers, while maintaining a prudent financial management and
healthy liquidity position.  The outlook also anticipates
moderate debt reduction with improved cash generation.

Any positive ratings consideration would require Magnesita
Refratarios to demonstrate that its recent initiatives resulted
in improved operating margins and a dramatic reduction in debt
while simultaneously maintaining a robust liquidity position,
resulting in net debt to EBITDA consistently below 2.0.  This is
unlikely to be evidenced in the near term.  A further constraint
to an upgrade is the company's current ownership structure and a
demonstration that financial policy will remain stable and
prudent over time.

Consistently negative free cash flows, deteriorated liquidity
and/or increased leverage as measured by net debt to EBITDA
above 3.0 probably due to acquisition could place downward
pressure on the company's rating or outlook.

Headquartered in Montes Claros, Brazil, Magnesita Refratarios
S.A. is Brazil's largest manufacturer of refractories used for
industrial high-temperature processes such as iron and steel,
cement, glass and others.  The company reported consolidated
revenues of BRL1,199 million (US$574 million) in 2007, thereof
approximately 83% achieved in Brazil, 5% in Argentina, and 12%
generated from exports.


NET SERVICOS: To Concentrate on Offering Bundled Services
---------------------------------------------------------
Net Servicos de Comunicacao SA's General Director Jose Felix
told reporters that the firm will concentrate on offering its
bundled services this year.

Mr. Felix commented to Business News Americas, "Before the
launch of Net Fone.com [which is the name of the package, not a
website address], the company's products were only reaching
[higher income] classes A and B.  Our penetration in [lower
income] class C was very low.  With this package we entered the
class C market and we want to increase our product's offer to
this segment."

BNamericas relates that Net Servicos' package contains:

          -- fixed telephony service,

          -- broadband Internet connection of 100 kilobits per
             second, and

          -- quality television signal to open public channels.

Mr. Felix also told BNamericas that there a partnership with
Claro for the offer of quadruple play services is very likely.  
At this point, we are working on identifying something that
would add value to clients of both companies and also interest
new possible customers."

Headquartered in Sao Paulo, Brazil, Net Servicos de Comunicacao
SA -- http://nettv.globo.com/NETServ/us/empr/sobr_visao.jsp--     
is the largest pay-television operator in Latin America.  The
company operates in 79 Brazilian cities, including Sao Paulo,
Rio de Janeiro, Belo Horizonte and Porto Alegre.  It is also the
leading provider of high-speed cable modem Internet access
through Net Virtua service.  Its advanced network of coaxial and
fiber-optic cable covers over 44,000 kilometers and passes
approximately 9 million homes.

                         *     *     *

As reported in the Troubled Company Reporter-Latin America on
Jan. 21, 2008, Moody's Investors Service assigned a Ba2 foreign
currency rating to the proposed up to US$200 million guaranteed
long term senior unsecured notes to be issued by Net Servicos de
Comunicacao S.A.  The rating outlook is stable.


SADIA SA: Shareholders OK Big Foods & Avicola Indust'l Purchase
---------------------------------------------------------------
Sadia S.A.'s shareholders, by majority voting at the
Extraordinary General Meeting on  April 17, ratified proposals
to acquire the controlling interest of Big Foods Industria de
Produtos Alimenticios Ltda. and of Avicola Industrial Buriti
Alegre Ltda, a regulatory filing with the U.S. Securities and
Exchange Commission says.

According to the SEC disclosure, shareholders agreed to purchase
the controlling interest of Big Foods for BRL53,500,000 and for
Avicola Industrial, BRL53,866,000.

Sadia S.A., headquartered in Sao Paulo, Brazil, exports over
1,000 different products to more than 100 countries and is the
largest slaughterer and distributor of poultry and pork
products, as well as the leading refrigerated and frozen protein
products company in Brazil.  For the last twelve months ending
in December 2006, the company had net sales of BRL 6.9 billion
(ca. US$3 billion) with approximately 45% of revenues derived
from exports.

                        *     *     *

As reported by the Troubled Company Reporter-Latin America on
Feb. 26, 2007, Standard & Poor's Ratings Services affirmed its
'BB' long-term corporate credit rating on Sadia S.A.  The
outlook is stable.


UAL CORP: US$542 Mil. Pretax Loss Does Not Affect S&P's 'B' Rtg.
----------------------------------------------------------------
Standard & Poor's Ratings Services said that its ratings and
outlook on UAL Corp., parent of United Air Lines Inc. (both
rated B/Negative/--) are not affected by UAL's report of a heavy
first-quarter loss.  UAL reported a first-quarter US$542 million
pretax loss, as much higher fuel prices more than offset
increased revenues.  S&P had revised its rating outlook on both
entities to negative from stable on April 16, 2008.  In that
outlook revision, S&P cited very high fuel prices and the
expected effect on UAL revenues of a weak U.S. economy.

UAL's loss is expected to be the worst reported by a U.S.
Airline in the first quarter of 2008, and has prompted the
company to pursue further capacity reductions, cost cuts,
capital expenditure reductions, and initiatives to generate
added revenues.  Management also suggested that the difficult
outlook only strengthens the need for a U.S. airline industry
consolidation, which would include a merger of UAL with another
airline.
   
UAL has manageable 2008 debt maturities (US$928 million) and
relatively low (and just reduced) planned capital spending of
US$450 million.  Unrestricted cash was US$2.9 billion at
March 31, lower relative to the size of the company's revenue
base than that of some other airlines.  Still, the principal
near-term issue for UAL is potential violation of the fixed-
charge covenant in United's bank facility.  The fixed-charge
covenant is defined as consolidated EBITDAR to cash interest
plus cash aircraft rents plus scheduled debt maturities, with a
minimum level of 1.0x, increasing to 1.1x at Dec. 31, 2008.  
UAL's 2008 fixed charges, as defined, are estimated at about
US$1.8 billion.  There is currently a reasonable cushion in the
fixed-charge covenant, but that could well change, given the
likelihood of a significant loss for the year.  

In response, UAL could choose to seek a negotiated amendment or
waiver, pay off the facility (US$1.2 billion outstanding), or
pursue other actions.  United has US$3 billion of aircraft,
spare engines, spare parts, and other "hard assets," that could
potentially support secured borrowing or generate proceeds from
a sale.  The company is also pursuing a sale of its aircraft
maintenance business, though that requires consent of the union
representing United mechanics.

Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA)
-- http://www.united.com/-- is the holding company for United
Airlines, Inc.  United Airlines is the world's second largest
air carrier.  The airline flies to Brazil, Korea and Germany.



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

ACKDON GAMMA: Proofs of Claim Filing Deadline is May 1
------------------------------------------------------
Ackdon Gamma Fund's creditors have until May 1, 2008, to prove
their claims to Frank Ackerer and Olivier Claudon, 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.

Ackdon Gamma's shareholders agreed on March 4, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

                 Frank Ackerer and Olivier Claudon
                 Maples Finance Limited
                 P.O. Box 1093, George Town
                 Grand Cayman, Cayman Islands


BANK RAKYAT: To Present 1st Quarter 2008 Earnings on April 29
-------------------------------------------------------------
PT Bank Rakyat Indonesia Tbk will hold its first quarter 2008
Earnings Presentation on April 29, 2008.

As reported by the Troubled Company Reporter-Asia Pacific on
April 1, 2008, the bank is targeting a 10-15% rise in its
2008 net profit.

For the quarter ended March 31, 2007, Bank Rakyat reported net
income of IDR1.2 trillion.   The TCR-AP also reported on March
31, 2008, that Bank Rakyat's 2007 net profit increased 13.6% to
IDR4.84 trillion from IDR4.26 trillion in 2006, after net
interest margins declined slightly.  

Headquartered in Jakarta, Indonesia, PT Bank Rakyat Indonesia
(Persero) Tbk's -- http://www.bri.co.id/-- services comprise  
Savings, Credits and Syariah.  In addition, the bank divides its
financial and business services into three groups: Business
Services, consisting of bank guarantees, bank clearance,
automatic teller machines and safe deposit boxes; Financial
Services, consisting of bill payments, CEPEBRI, INKASO, deposit
acceptance, online transactions and transfers, and Other
Services, consisting of tax and fine payments, donations,
Western Union and zakat contributions.  During the year ended
Dec. 31, 2005, the bank had one branch office in Cayman Islands
and two representative offices in New York and Hong Kong,
respectively.

The Troubled Company Reporter-Asia Pacific reported on Oct. 19,
2007, that Moody's Investors Service raised Bank Rakyat's
foreign currency long-term debt rating to Ba2 from Ba3 and its
foreign currency long-term deposit ratings to B1 from B2.

Fitch Ratings affirmed all the ratings of PT Bank Rakyat
Indonesia (Persero) Tbk:

    * Long-term foreign Issuer Default rating 'BB-',
    * Short-term rating 'B',
    * National Long-term rating 'AA+(idn)',
    * Individual 'C/D', and
    * Support '4'.


COURAGE HEDGED: Proofs of Claim Filing is Until May 1
-----------------------------------------------------
Courage Hedged US Equity Master Fund, Ltd.'s creditors have
until May 1, 2008, to prove their claims to Giles Kerley and
Joshua Grant, 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.

Courage Hedged's shareholders agreed on Dec. 31, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

                 Giles Kerley and Joshua Grant
                 Maples Finance Limited
                 P.O. Box 1093, George Town
                 Grand Cayman, Cayman Islands


COURAGE HEDGED US: Proofs of Claim Filing Deadline is May 1
-----------------------------------------------------------
Courage Hedged US Equity Offshore Fund, Ltd.'s creditors have
until May 1, 2008, to prove their claims to Giles Kerley and
Joshua Grant, 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.

Courage Hedged's shareholders agreed on Dec. 31, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

                 Giles Kerley and Joshua Grant
                 Maples Finance Limited
                 P.O. Box 1093, George Town
                 Grand Cayman, Cayman Islands


F.Y. FUNDING: Proofs of Claim Filing is Until May 1
---------------------------------------------------
F.Y. Funding Cayman Limited's creditors have until May 1, 2008,
to prove their claims to Joshua Grant and Phillipa White, 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.

F.Y. Funding's shareholder decided on March 12, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

                 Joshua Grant and Phillipa White
                 Maples Finance Limited
                 P.O. Box 1093, George Town
                 Grand Cayman, Cayman Islands


HYDRA VI: Proofs of Claim Filing Deadline is May 1
--------------------------------------------------
Hydra VI Funding Corporation's creditors have until May 1, 2008,
to prove their claims to Martin Couch and Giles Kerley, 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.

Hydra VI's shareholders agreed on March 12, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

                 Martin Couch and Giles Kerley
                 Maples Finance Limited
                 P.O. Box 1093, George Town
                 Grand Cayman, Cayman Islands


PARMALAT SPA: Factorit & Italease Settle Revocatory Suit
--------------------------------------------------------
Factorit S.p.A. and Banca Italease S.p.A. have settled the claim
related to revocatory action filed by Parmalat S.p.A. in
Extraordinary Administration and by Parmalat S.p.A., Assumptor
of the Proposal of Composition.

The Factorit settled the revocatory action and committed to
pay of EUR2,500,000 as well as to relinquishing in favor of
Parmalat the outstanding credits that have not been collected by
Factorit.

Italease is foregoing the right to claim in the bankruptcy
procedure for the payment made.  Litigation expenses will be
compensated among the parties.

                      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.


PARMALAT SPA: Selling Newlat SpA to TMT Finance
-----------------------------------------------
Parmalat S.p.A., following a competitive procedure, has
signed a contract with TMT Finance S.A. to dispose of the entire
share capital of Newlat S.p.A., in compliance with antitrust
rulings no. 14452 dated June 30, 2005, and no. 16282 dated
Dec. 31, 2006.  

Disposal of the shares is subject to approval and authorization
of the purchase by the Italian competition and market authority.

Newlat has its registered offices in Reggio Emilia, and has been
part of the Parmalat group since August 2006 after coming out of
controlled administration procedure.  The company operates under
the "Polenghi," "Matese," "Giglio," "Torre in Pietra" and "Fior
di Salento" brands.  

Newlat reported turnover of around EUR150 million in 2007, and
had a headcount numbering more than 300 staff.

TMT, with headquarters in Lugano in Switzerland, has a footprint
in various sectors of the food and agricultural industry, such
as milling, production of pasta and milk and dairy produce, and
also in shipping and modern trade distribution.  The TMT Group’s
reported consolidated 2007 turnover of more than EUR200 million,
with a headcount of over 600 staff and a production structure
distributed across 12 facilities in Italy.

Newlat will be sold at the closing date for a token value of
EUR1, against the sale by Parmalat to Newlat of a receivable in
an amount of up to EUR8 million, again for a token value of
EUR1.

Inter-company items for an amount of approximately EUR4.5
million will be reimbursed before the closing, with an estimated
cash flow of equal amount in favor of Parmalat Group.

The sale will not have any economic impact on Parmalat.  With
this transaction, Parmalat will de-consolidate financial debt
and amounts payable under finance leases for a total of
around EUR36 million on the basis of the situation as at
March 31, 2008.

Parmalat S.p.A. will promptly inform of the execution of shares
transfer as per the agreement signed.

                        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.


PARMALAT SPA: NJ Judge Dismisses Most Claims Versus Citigroup
-------------------------------------------------------------
The Hon. Jonathan N. Harris of the New Jersey Superior Court has
dismissed most of the claims filed by Parmalat S.p.A. against
Citigroup Inc., Bloomberg News reports.

According to the report, Judge Harris has dismissed fraud,
conspiracy, racketeering and unjust enrichment charges against
Citigroup.  

Citigroup, however, will still go to trial May 5, 2008, for
charges of aiding and abetting breach of fiduciary duty relating
to the corrupt insiders' larceny from Parmalat.

"We look forward to vindication on the remaining claims and our
counterclaims for the losses we suffered as a victim of
Parmalat's admitted fraud," Citigroup spokeswoman Andrea Hurst
told Bloomberg News.

Parmalat said the ruling narrowed its claims and measure of
damages against Citigroup.  Bloomberg News relates that Judge
Harris didn't specify the size of Citigroup's potential
liability.

                      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.


PARMALAT SPA: Court Closes Chapter 11 Cases of Former U.S. Units
----------------------------------------------------------------
Judge Robert D. Drain of the U.S. Bankruptcy Court for the
Southern District of New York entered a final decree closing the
Chapter 11 cases of Parmalat USA Corp., Farmland Dairies LLC,
and Farmland Stremicks Sub, L.L.C.

Pursuant to Section 1930(a)(6) of the Judiciary and Judicial
Procedures Code, the Reorganized and Liquidating Debtors will
not be obligated to pay quarterly fees to the U.S. Trustee for
any period beyond March 31, 2008 with respect to their Chapter
11 cases.

The Final Decree is without prejudice to the rights of the
Debtors or any party-in-interest to seek to reopen their Chapter
11 cases.

On behalf of Parmalat USA, Farmland Dairies and Farmland
Stremicks, formerly known as Milk Prodcts of Alabama L.L.C.,
Gary T. Holtzer, Esq., at Weil, Gotshal & Manges, LLP, in New
York, said the U.S. Debtors have resolved approximately all of
the 970 claims that were filed in their cases, as well as other
matters which remained open after the confirmation of their
Modified Chapter 11 Plan of Reorganization dated March 9, 2005.

Mr. Holtzer said there are two pending claims objections
remaining:

  (a) Parmalat USA and Farmland's objection to a priority tax
      claim filed by the New York State Department of Taxation
      and Finance; and

  (b) Parmalat USA's objection to a general unsecured personal
      injury claim.

According to Mr. Holtzer, the U.S. Debtors are hopeful that
those claims can be resolved without further intervention of the
Court.  In the interim, the U.S. Debtors have created reserves
for those disputed claims and hence are able to satisfy those
claims upon allowance.

Mr. Holtzer said the U.S. Debtors' cases have been "fully
administered" within the meaning of Section 350.

According to Mr. Holtzer, other than the two pending claims
objections, the U.S. Debtors' only remaining obligations will be
to:

    (i) make additional distributions pursuant to the Plan;
   (ii) file tax returns; and
  (iii) in the cases of Parmalat USA and MPA, dissolve.

Allowing the U.S. Debtors to close their Chapter 11 cases will
save significant expenses and benefit all parties, Mr. Holtzer
said.  Until the Court enters a final decree closing the cases,
the U.S. Debtors may be required to continue payment of
quarterly fees to the U.S. Trustee.  The U.S. Debtors have filed
with the Clerk of the Court their Bankruptcy Closing Report.

Accordingly, the U.S. Debtors submit that there is ample
justification for the entry of a final decree closing their
Chapter 11 cases.

A full-text copy of the U.S. Debtors Closing report is available
at no charge at:

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

                       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.


PARMALAT SPA: Trustee Seeks 3-Year Extension of Farmland Trust
--------------------------------------------------------------
At the behest of Gerald K. Smith, as Trustee of the Farmland
Dairies LLC Litigation Trust, the U.S. Bankruptcy Court for the
Southern District of New York extended the life of the Trust for
an additional three-year term, through and including April 12,
2011.

Mr. Smith relates that Farmland Trust was created under a trust
agreement between Farmland Dairies and Mr. Smith, in order to
pursue certain claims previously held by Farmland.  The Trust
Agreement assigned the claims to Farmland Trust, and provided
that the claims be liquidated and ultimately distributed to
certain creditors as beneficiaries.

According to Mr. Smith, Farmland Trust has already distributed
US$36,126,269 to its beneficiaries, from claims that were
previously liquidated.  Farmland Trust is currently pursuing
additional claims in 17 Italian courts as well as in the United
States District Court for the Southern District of New York.  
Mr. Smith believes that the pending claims are meritorious, and
will result in substantial recoveries for Farmland Trust.  
However, Mr. Smith maintains, resolution of those matters will
take additional time.

In order to ensure certain tax advantages, and out of an
abundance of caution, Farmland Trust was established for a
three-year term, Mr. Smith relates.  The Trust Agreement
provides that the three-year term, which will expire on
April 12, 2008, may be extended for up to three years.  Mr.
Smith believes that an extension will not prejudice Farmland
Trust's tax status.

Mr. Smith states that he is aware of no reason for the
Bankruptcy Court to deny the extension of Farmland Trust's
three-year term.

Mr. Smith reserves the right to seek an additional extension, if
it becomes necessary and is in the best interest of Farmland
Trust's beneficiaries.

                       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.



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

EASTMAN KODAK: S&P Holds B+ Corporate Credit Rating
---------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on
Eastman Kodak Co. to stable from negative.  At the same time,
S&P affirmed the ratings, including the 'B+' corporate credit
rating.

"The outlook change reflects our opinion that a near-term
downgrade is unlikely," explained Standard & Poor's credit
analyst Tulip Lim.

Kodak has substantial liquid resources.  Additionally, S&P
believes that absent significant acquisitions or sharp earnings
deterioration, leverage is not likely to increase in the near-
term.  S&P expects that the company's discretionary cash flow
generation will improve this year because it will be making less
cash restructuring payments than it did last year.  S&P believes
that Kodak may be starting to gain some traction with its
digital business, reducing its exposure to the secular decline
of its traditional products.

The rating reflects Standard & Poor's concern about the
company's earnings and cash flow prospects in light of the
ongoing and rapid deterioration of its traditional consumer
imaging business, the unproven long-term profit potential of its
consumer digital imaging businesses, its still-meaningful cash
restructuring costs, and its leveraged financial profile.
Kodak's substantial cash balances, competitive positions in
various digital imaging markets, some business diversity
provided by the Graphic Communications Group, and our
expectation that cash restructuring costs will subside in 2009,
only partially offset these risks.

Headquartered in Rochester, New York, Eastman Kodak Co. (NYSE:
EK)-- http://www.kodak.com/-- develops, manufactures, and
markets digital and traditional imaging products, services, and
solutions to consumers, businesses, the graphic communications
market, the entertainment industry, professionals, healthcare
providers, and other customers.

The company has operations in Argentina, Chile, Denmark, Greece,
Jordan, Yemen, Australia, China among others.


METHANEX CORP: Earns US$65.4 Million in 2008 First Quarter
----------------------------------------------------------
Methanex Corporation reported net income of US$65.4 million on
net revenues of US$735.9 million for the first quarter of 2008,
compared to net income of US$144.7 million on net revenues of
US$673.9 million for the same quarter of 2007.

Bruce Aitken, President and CEO of Methanex commented, "Our
average realized price in the first quarter was $545 per tonne
which resulted in another good quarter of earnings for our
shareholders.  Our earnings under this pricing environment would
normally be higher, however, we sourced less of our sales
from produced methanol during the first quarter and more from
purchased methanol and this had an impact on our profitability.  
In addition, methanol pricing peaked in December and decreased
through the first quarter and, as is typical in a decreasing
methanol price environment, our sales margins on both produced
and purchased methanol are impacted by inventory timing issues."

Mr. Aitken added, "In the high methanol price environment of the
last six months, we saw China moving from being a net importer
to a net exporter, which we believe has been the most
significant factor causing the methanol market to rebalance and
methanol prices to decline.  We have also seen some regional
softness in demand in some derivatives, but globally we continue
to observe that demand for methanol is healthy and the high
energy price environment continues to underpin strong demand
growth for new methanol demand in energy applications,
particularly in DME and fuel blending in China."

Mr. Aitken continued, "China has recently reverted to being a
net importer and spot methanol prices are increasing.  We are
continuing to make good progress on our initiatives to source
more gas in Chile and we recently agreed to terms on a gas
supply arrangement in New Zealand which will allow us to switch
production to one of our larger idle plants in the second half
of the year."

Mr. Aitken concluded, "Our strong cash generation in the first
quarter continues to leave us in a strong financial position.  
With US$465 million cash on hand at the end of the quarter, a
strong balance sheet and a US$250 million undrawn credit
facility, we are well positioned to meet our financial
commitments related to the Egypt methanol project, pursue
opportunities to accelerate natural gas development in southern
Chile, pursue opportunities to sponsor methanol demand in new
energy applications, pursue other strategic growth initiatives,
and continue to deliver on our commitment to return excess
cash to shareholders."

Vancouver-based Methanex Corp. (Toronto: MX) (NASDAQGM: MEOH) --
http://www.methanex.com/-- is a publicly-traded company engaged
in the production, distribution, and marketing of methanol.  The
company's stock also trate on foreign securities market of the
Santiago Stock Exchange in Chile under the trading symbol
"Methanex."

                         *     *     *

Moody's Investor Services' credit ratings for the company's
unsecured notes at Sept. 30, 2007, is Ba1.  Moody's said the
outlook is stable.



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

GMAC LLC: Moody's May Further Cut B2 Rating After Review
---------------------------------------------------------
Moody's Investors Service downgraded GMAC LLC's senior rating to
B2 from B1; the rating remains on review for further possible
downgrade.

This action follows Moody's rating downgrade of ResCap LLC,
GMAC's wholly-owned residential mortgage unit, to Caa1 from B2.

The GMAC downgrade is based upon Moody's opinion that further
operating weakness at ResCap poses risks to GMAC's capital
position and liquidity that exceed previous estimates. In
particular, Moody's believe that for ResCap to have continued
access to debt capital, GMAC may be required to provide
additional indications of support to the unit and that it is
likely to do so.  As noted in the ResCap related press release,
ResCap faces significant near-term refinancing needs.

GMAC has strategic significance to GM, as its exclusive provider
of consumer incentive financing for nearly all of its brands,
and as a provider of inventory floorplan loans to GM's dealer
base.  As a consequence,  Moody's don't believe GMAC's owners
intend to compromise the firm's credit profile to the point of
weakening its ability to perform under its contractual asset
origination and servicing obligations to GM.  It is our belief,
however, that the ResCap exposures that GMAC has accumulated to
date, and may yet further accumulate, represent a risk
concentration that could challenge the strength of the GMAC's
credit standing.

During its review, Moody's will examine GMAC's intentions for
supporting ResCap through its difficulties, as well as the terms
pertaining to any such support extension.

Moody's considers GMAC's stand-alone strengths in its auto
finance and insurance businesses to continue to provide support
to its rating profile.

Ratings downgraded and placed under review for further downgrade
include:

   -- Issuer rating: to B2 from B1
   -- Senior Unsecured: to B2 from B1
   -- Preferred Stock: to Caa2 from Caa1

GMAC LLC -- http://www.gmacfs.com/-- formerly General Motors
Acceptance Corporation, is a global, diversified financial
services company that operates in approximately 40 countries in
automotive finance, real estate finance, insurance and other
commercial businesses.  GMAC was established in 1919 and employs
approximately 26,700 people worldwide.  Cerberus Capital
Management LP bought 51% GMAC LLC stake from General Motors
Corp. on December 2006.  Its Latin American operations are
located in Argentina, Brazil, Chile, Colombia, Mexico and
Venezuela.



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

SIRVA INC: Court Extends Confirmation Hearing for Two Days
----------------------------------------------------------
Judge James M. Peck of the U.S. Bankruptcy Court for the
Southern District of New York has extended SIRVA, Inc.'s
confirmation trial for two more days, reports The Wall Street
Journal.

The Confirmation Hearing, which commenced April 18, 2008, was
scheduled to go for two days.  However, Judge Peck added a
couple more days to allow for more time, says the report.

"I am deeply concerned about the fire-drill aspects of this
bankruptcy case," Judge Peck told parties-in-interest present at
the Hearing.

Prior to April 18, the Debtors sought court approval to modify
their Plan to address objections filed by certain Class 5
unsecured creditors who were slated to recover nothing under the
Plan.

However, the Official Committee of Unsecured Creditors said the
changes require the Debtors to send its Plan back to creditors
for voting, says Dow Jones Newswires.

Due to continuing criticism at the Hearing, counsel for the
Debtors, Marc Kieselstein, P.C., at Kirkland and Ellis LLP in
Chicago, Illinois, had said the Debtors will withdraw the
changes, and revert back to the original plan, Dow Jones
reports.

           Plan Confirmation May be Further Delayed

Judge Peck said he is unlikely to approve SIRVA's Prepackaged
Joint Plan of Reorganization by April 30, 2008 -- the deadline
imposed by LaSalle Bank, an agent for SIRVA's secured lenders,
reports Tiffany Kary of Bloomberg News.

"There must be a Plan B because you are not going to put a gun
to my head to decide this by April 30," Judge Peck said.

The judge asked the banks to extend the April 30 deadline to
May 14, 2008.

Representing LaSalle, Bojan Guzina, Esq., said the bank made a
recommendation to the lenders to extend the financing to May 14.

"We don't think it will be a problem and will be resolved early
[this] week," Mr. Guzina told Bloomberg News.

The Debtors' operations are funded through a securitization
program from LaSalle.  The funding gives the Debtors access to
as much as US$182,500,000 at any time.  The Debtors have
US$9,000,000 in equity in the LaSalle securitization at present.  
LaSalle also has a US$19,000,000 priority claim from the
Debtors.  If the lenders decide to pull the financing, the
Debtors may be forced to borrow more money under its exit loan,
Bloomberg says.

                   Parties Fight Over Reports

Prior to the Confirmation Hearing, the Official Committee of
Unsecured Creditors asked the Court to exclude from the record
at the Hearing the Debtors' entity level liquidation analyses
rebuttal report dated April 10, 2008.

Under the Court-established deadlines for fact and expert
discovery, parties were directed to exchange expert reports on
April 4, 2008, and rebuttal expert reports by April 10.  On
April 10, the Debtors produced their Entity Level Liquidation
Analyses Rebuttal Report.

According to Committee counsel, Ilan D. Scharf, Esq., at
Pachulski Stang Ziehl & Jones LLP, in New York, the Debtors'
Rebuttal Report addresses the Debtors' contention that there is
no recovery to unsecured Class 5 claims in a liquidation on an
entity level.  The reports filed by the Committee do not address
liquidation at an entity level.  

Mr. Scharf argued that the Debtors' Rebuttal Report is nothing
more than a new report delivered too late and a supplement to
the Debtors' liquidation analysis dated April 5, 2008 -- and
should, therefore, be excluded.  The Committee pointed out that
it is not a rebuttal report but an expert report that should
have been produced on April 5.

The Committee further maintained that the Court should exclude
the Debtors' Rebuttal Report from the record because admission
of the Report will prejudice the Committee.

In response, the Debtors told Judge Peck that they had properly
served their Rebuttal Report -- which addresses the Committee's
challenges to substantive consolidation, as well as their expert
reports' analysis of recoverable assets -- consistent with the
Court's orders.  The Debtors insisted that there are no grounds
for prejudice against the Committee, much less "unfair
prejudice" as required under Rule 403 of the Federal Rules of
Evidence.

The Debtors further asked the Court to (i) prohibit Triple Net
Investments IX, LP, from producing new documents at the
Confirmation Hearing, and (ii) to preclude the testimonies of
Greg Rogerson and Anthony Calascibetta.

According to the Debtors, the Court had ordered that document
production be completed by April 4, 2008.  Triple Net had told
the Debtors that it will not produce documents until after it
filed its objection to the Debtors' Plan last April 11, 2008.

On behalf of the Debtors, Mr. Kieselstein told Judge Peck that
Triple Net had waited until after its witnesses were deposed,
and until three days before the Confirmation Hearing, to produce
the documents pursuant to the Debtors' requests.  In response to
the Debtors' efforts to meet and confer, Triple Net had provided
non-responsive answers, and refused to abide by its discovery
obligations.

According to Mr. Kieselstein, the documents that Triple Net
produced on April 15, 2008, were an extremely limited subset of
the materials the Debtors requested, and are not even materials
which Mr. Rogerson will use for his testimony.

The Debtors pointed out that Mr. Rogerson and Mr. Calascibetta
should be precluded from offering testimony at the Confirmation
Hearing, and Triple Net should not be permitted to introduce
into evidence, rely on, or refer to, documents that are not
timely produced.

In reaction to the Debtors' contention, Triple Net informed
Judge Peck that the Debtors did not provide any legal support to
justify the exclusion of Mr. Calascibetta, who prepared a
rebuttal expert report based on the Debtors' and the Committee's
liquidation analyses.

Triple Net's attorney, Robert E. Nies, Esq., at Wolff & Samson
PC, in New York, said the documents relied upon by Mr.
Calascibetta were the expert report of Philip E. Kruse of
Alvarez & Marsal, and the deposition testimony of Daniel Mullin,
chief accounting officer of SIRVA, Inc.  All documents are in
the Debtors' possession.  Triple Net was under no obligation to
reproduce the documents since Mr. Calascibetta's report was a
rebuttal report.

Mr. Nies insisted that the Debtors' request should be denied
because Triple Net fully and completely responded to the
Debtors' discovery requests, and the Debtors were not prejudiced
by any of Triple Net's action, or inaction.  Besides, Mr. Nies
added, the Debtors failed to file a discovery motion to compel
the production of the documents.

Moreover, Triple Net asked the Court to exclude the testimony of
Mr. Mullin, and to preclude the evidence presented on the
Debtors' "creditor reliance" theory at the Confirmation Hearing.

Mr. Nies argued that Mr. Mullin's testimony, and all testimonies
concerning the Debtors' substantive consolidation, should be
excluded because the Debtors' actions denied creditors a
meaningful opportunity and sufficient time to acquire the
information needed to assess the consolidation.  

The Debtors' creditor reliance theory, as a separate basis for
substantive consolidation, has only been raised on the eve of
the Confirmation Hearing, Mr. Nies maintained.  Triple Net
complained that it had been denied discovery concerning evidence
to support or refute the theory.

Additionally, Mr. Nies informed the Court that Mr. Mullin had
professed no knowledge of any of the facts related to Debtors'
schedules of assets and liabilities, in violation of Rule 602 of
the Federal Rules of Evidence.  The Debtors' Schedules are a
critical component of any substantive consolidation analysis, he
said.

                       Debtors Talk Back

The Debtors replied that they presented Mr. Mullin for
deposition as the corporate representative on the substantive
consolidation issue.  

Mr. Kieselstein argued that Triple Net had failed to inform the
Court that Mr. Mullins had provided specific information based
on his firsthand knowledge, and described how intercompany
transactions are recorded.

According to Mr. Kieselstein, Triple Net's arguments are devoid
of legal support for its contention that the Debtors' Schedules
are related to substantive consolidation, let alone a  
prerequisite for testimony about how accounting is conducted at
SIRVA.

Mr. Mullin is intimately familiar with the company's accounting
systems and methods, the Debtors explained, and this familiarity
provides the requisite personal knowledge to allow him to
testify, under Rule 602 of the Federal Rules of Evidence.

Headquartered in Westmont, Illinois, SIRVA Inc. (Pink Sheets :
SIRV.PK) -- http://www.sirva.com/-- is a provider of relocation
solutions to a well-established and diverse customer base.  The
company handles all aspects of relocation, including home
purchase and home sale services, household goods moving,
mortgage services and home closing and settlement services.
SIRVA conducts more than 300,000 relocations per year,
transferring corporate and government employees along with
individual consumers.  SIRVA's brands include Allied, Allied
International, Allied Pickfords, Allied Special Products, DJK
Residential, Global, northAmerican, northAmerican International,
Pickfords, SIRVA Mortgage, SIRVA Relocation and SIRVA
Settlement.  The company has operations in Costa Rica.

The company and 61 of its affiliates filed separate petitions
for Chapter 11 protection on Feb. 5, 2008 (Bankr. S.D.N.Y. Case
No. 08-10433).  Marc Kieselstein, Esq. at Kirkland & Ellis,
L.L.P. is representing the Debtor.  An official Committee of
Unsecured Creditors has been appointed in this case.  When the
Debtors filed for bankruptcy, it reported total assets of
US$924,457,299 and total debts of US$1,232,566,813 for the
quarter ended Sept. 30, 2007.  

(Sirva Inc. Bankruptcy News, Issue No. 12; Bankruptcy Creditors'
Services Inc. http://bankrupt.com/newsstand/or 215/945-7000)



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

BASIC ENERGY: Approves US$3 Billion Merger Deal with Grey Wolf
------------------------------------------------------------
Grey Wolf Inc. and Basic Energy Services Inc.'s boards of
directors approved a definitive agreement to combine the two
businesses in a "merger of equals".  Based upon closing prices
for each company's common stock as of April 18, 2008, the
estimated enterprise value of the combined company would be
approximately US$2.9 billion.

The combined company will be named Grey Wolf Inc., have its
corporate offices in Houston, establish incorporation in the
state of Delaware and trade on the New York Stock Exchange under
the symbol "GW".

Under the terms of the agreement, Grey Wolf shareholders will
receive US$1.82 in cash and 0.2500 shares of new Grey Wolf for
each share of Grey Wolf they currently own.  Based on this
exchange ratio, each stockholder of Grey Wolf will receive one
share of new Grey Wolf for each four shares of Grey Wolf in
addition to the cash consideration.

Basic Energy Services shareholders will receive US$6.70 in cash
and 0.9195 shares of new Grey Wolf for each share of Basic
Energy Services they currently own.  The total number of shares
outstanding of the combined company, which is reflective of the
above exchange ratios applied to both companies' current shares
outstanding, will be approximately 85 million shares.  Pro forma
net debt as of Dec. 31, 2007, will be approximately
US$960 million.

The combined company intends to dedicate a substantial amount of
its free cash flow to the repayment of the debt while at the
same time fully funding and implementing its significant, value-
adding growth initiatives.

The greater financial strength of the combined company will
enable it to return approximately US$600 million in cash to the
combined shareholder base while retaining financial flexibility
to invest for future growth.  

The financing will be provided by affiliates of UBS Investment
Bank and Goldman Sachs & Co.  The cash was issued to the two
sets of shareholders proportionate to pro forma ownership of the
combined company, which will be approximately 54% owned by
current Grey Wolf shareholders and 46% owned by current Basic
Energy Services shareholders.

The companies expect that the combination will create an
organization with approximately 7,500 personnel, providing a
range of drilling and oilfield well services.  The combined
company will have 395 well servicing and 130 drilling rigs well
as other oilfield service assets, pro forma sales and EBITDA of
approximately US$1,784 million and US$632 million.  Pro forma
sales for the full year ending Dec. 31, 2007, would be
approximately 53% from contract drilling, 19% from well
servicing, 15% from fluid services and 13% from completion and
remedial services.

Thomas P. Richards, current Grey Wolf chairman, president and
CEO, will serve as Grey Wolf Inc.'s chairman after the merger.

"This is an exciting opportunity for our shareholders, our
customers and our people, Mr. Richards said.  "Grey Wolf's
premium land drilling rig fleet complements Basic Energy
Service's premium land-based well servicing equipment.  With
approximately 50% of Basic Energy Service's business focused on
oil and approximately 95% of Grey Wolf's business focused on
natural gas, this transaction results in a company with a
diversified revenue stream in terms of exposure to oil and gas
opportunities, involvement through the life of the well from
drilling to production to well abandonment and a very broad
geographic coverage, all of which is consistent with our stated
strategic goal.  

"We are confident that our valued customers will respond
positively to this merger with the combined company's enhanced
ability to satisfy their needs," Mr. Richards stated.  "Grey
Wolf has an outstanding management team, well as operational and
support staff, which when combined with Basic Energy Services'
organization, will produce a best-in-class team."

Ken Huseman will serve as chief executive officer of Grey Wolf
Inc. after the merger.

"This combination achieves the goal of moving Basic Energy
Services forward in achieving a size which allows the combined
company to compete effectively for expansion opportunities
anywhere in the world while continuing to build upon the
existing footprint of both companies,' Mr. Huseman said.  "The
expanded operational capability of a more diversified company
will produce significant benefits for our customers and provide
substantial growth opportunities for our people."

"In addition, the cash consideration allows us to provide each
companies' shareholders with a meaningful financial return
without unduly limiting the growth potential for the combined
entity," Mr. Huseman added.  "This is an ideal fit for the
stakeholders in both companies."

After the merger, Bob Proffit, current senior vice president,
human resources of Grey Wolf, will assume the role of senior
vice president, administration at the combined company and
Spencer Armour, current senior vice president, corporate
development of Basic Energy Services, will remain in the same
role at the combined company.  Operating level officers for both
companies will continue in their current roles.

The transaction is expected to close in the third quarter of
2008.  Completion of the transaction is subject to shareholder
approval at both Grey Wolf and Basic Energy Services, receipt of
financing proceeds, regulatory approvals and other customary
conditions.

DLJ Merchant Banking Partners III L.P. and its affiliated funds,
holders of approximately 44% of the outstanding shares of Basic
Energy Services, have entered into a voting agreement agreeing
to vote in favor of the transaction.

UBS Investment Bank is acting as exclusive financial advisor to
Grey Wolf and Goldman, Sachs & Co. is acting as exclusive
financial advisor to Basic Energy Services.  

Simmons & Company International provided a fairness opinion to
the board of Grey Wolf.  Tudor Pickering Holt & Co. provided a
fairness opinion to the board of Basic Energy Services.  Porter
& Hedges L.L.P. and Gardere Wynne & Sewell LLP are acting as
legal counsel to Grey Wolf, and Davis Polk & Wardwell and
Andrews Kurth LLP are acting as legal counsel to Basic Energy
Services.

                        About Grey Wolf

Headquartered in Houston, Texas, Grey Wolf Inc. (AMEX: GW) --
http://www.gwdrilling.com/-- provides turnkey and contract oil
and gas land drilling services in the best natural gas producing
regions in the United States with a current drilling rig fleet
of 121, which will increase to 123 with the expected addition of
two new rigs in 2008.

                   About Basic Energy Services

Headquartered in Midland, Texas, Basic Energy Services Inc.
(NYSE:BAS) -- http://www.basicenergyservices.com/-- operates in
the major oil and gas producing markets in the US including
South Texas, the Texas Gulf Coast, the Ark-La-Tex region, North
Texas, the Permian Basin of West Texas, the Mid Continent,
Louisiana Inland Waters and the Rocky Mountains.  Founded in
1992, Basic Energy has more than 4,600 employees in 11 states.

In the Dominican Republic, Basic Energy controls power companies
Cepm, Cespm and Ege Haina.

As reported on May 1, 2007, Basic Energy head Rolando Gonzalez
Bunster told Business News Americas that the company and its
Dominican Republic affiliates will construct a 35-megawatt
thermo plant in Haiti.


BASIC ENERGY: Grey Wolf Merger Deal Cues S&P's Positive Watch
-------------------------------------------------------------
Standard & Poor's Ratings Services has placed the ratings on
oilfield services firms Grey Wolf Inc. and Basic Energy Services
Inc., including the 'BB-' corporate credit ratings, on
CreditWatch with positive implications.

"The rating action follows the announcement of an agreement to a
'merger of equals' between the two companies," explained
Standard & Poor's credit analyst Jeffrey Morrison.

While Grey Wolf will be the surviving legal entity, senior
management will consist of officers from both Grey Wolf and
Basic Energy.  The transaction is expected to close in the third
quarter of 2008, subject to approval by both companies'
respective shareholders, the receipt of financing proceeds, and
regulatory approval.

Under the terms of the agreement, Grey Wolf shareholders will
receive US$1.82 in cash and 0.25 shares of new Grey Wolf stock
for each share of Grey Wolf, and Basic Energy shareholders will
receive US$6.70 in cash and 0.91 shares of new Grey Wolf stock
for each share of Basic Energy.  S&P expect a new credit
facility, including a committed US$600 million term loan, and
available cash balances will fund the cash outlay to
shareholders.

Despite the additional debt in the capital structure, S&P expect
pro forma leverage to remain relatively modest at below 2.0x on
a debt to EBITDA basis.  Further, the expected free cash flow
profile of the combined entity could allow for some debt
reduction over the intermediate term.

The positive CreditWatch listing reflects the potential for a
ratings upgrade or affirmation in the near term.  Substantially
increased operational scale, a broadened product and service
offering, and moderate pro forma debt leverage could warrant a
one-notch upgrade of Grey Wolf.  Given that Grey Wolf will be
the surviving legal entity, the rating on Basic Energy will be
the same as that of Grey Wolf.  S&P expect to resolve the
CreditWatch listing prior to close of the transaction, following
a meeting with management and corresponding full review of the
combined entity, capital structure, and business plan.  S&P will
comment on potential issue and recovery rating changes at that
time.

Grey Wolf's outstanding convertible note issues could be
converted at their holders' option prior to or after the close
of the transaction.  S&P expect Basic Energy's senior unsecured
notes to remain outstanding obligations of the new entity, but
they will become secured upon the transaction's close.

The combined entity will have pro forma revenues and EBITDA of
US$1.7 billion and US$632 million (as of Dec. 31, 2007),
respectively.  Moody's expects the addition of Basic Energy's
well servicing, fluid services, and completion and remedial
services businesses will complement Grey Wolf's primarily land-
drilling-focused operations.  Correspondingly, the combined
entity will derive about 53% of its revenues from land contract
drilling operations, 19% from well servicing, 15% from fluid
services, and 13% from completion and remedial services.  S&P
expect liquidity to be ample upon close of the transaction, with
full availability under a new US$325 million revolver and over
US$150 million in cash and equivalents.

Headquartered in Midland, Texas, Basic Energy Services Inc.
(NYSE:BAS) -- http://www.basicenergyservices.com/-- operates in
the major oil and gas producing markets in the US including
South Texas, the Texas Gulf Coast, the Ark-La-Tex region, North
Texas, the Permian Basin of West Texas, the Mid Continent,
Louisiana Inland Waters and the Rocky Mountains.  Founded in
1992, Basic Energy has more than 4,600 employees in 11 states.

In the Dominican Republic, Basic Energy controls power companies
Cepm, Cespm and Ege Haina.

As reported on May 1, 2007, Basic Energy head Rolando Gonzalez
Bunster told Business News Americas that the company and its
Dominican Republic affiliates will construct a 35-megawatt
thermo plant in Haiti.



=============
E C U A D O R
=============

BANCO PICHINCHA: Extends Consent Solicitation to April 29
---------------------------------------------------------
Banco Pichincha C.A. has extended the Expiration Date for the
previously announced solicitation of consents to amend the terms
of the indenture and collateral control agreement for its
US$25,000,000 Floating Rate United States Treasury-
Collateralized Convertible Bonds Due 2012.  As of April 23,
US$25,000,000 principal amount of the Bonds are outstanding.  

The purpose of the Consent Solicitation is to obtain the consent
of the holders of each of the outstanding Bonds to amend the
indenture governing the Bonds to permit Pichincha to replace
collateral with additional U.S. treasury securities, U.S.
treasury bills or cash in United States dollars and amend the
collateral control agreement to permit Pichincha to invest cash
collateral in, or replace cash collateral with, U.S. treasury
bills having a maturity of one year or less.

The Expiration Date for the Consent Solicitation has been
extended to 5:00 p.m., New York City time, on April 29, 2008,
unless terminated or further extended.  Banco Pichincha reserves
the right to terminate or further extend the Consent
Solicitation in its sole discretion.  The Consent Solicitation
is being made to all persons in whose name a Bond was registered
at 5:00 p.m., New York City time, on April 1, 2008 and their
duly designated proxies.  Holders of the Bonds must deliver (and
not revoke) valid consents in respect of 100% in aggregate
principal amount of all outstanding Bonds (Requisite Consents)
to approve the proposed amendments.  If the Requisite Consents
are obtained (and not revoked) and the proposed amendments are
adopted and become effective, they will be binding on all
Holders, and their respective transferees.

Upon the terms and subject to the conditions set forth in the
Consent Solicitation Statement, dated April 1, 2008, if a
consent is received (and not revoked) by Bondholder
Communications Group, as information and tabulation agent for
the Consent Solicitation, and if the other conditions set forth
therein are satisfied or waived, promptly after receipt of the
Requisite Consents, each Holder who has delivered (and not
revoked) a valid Consent on or before the Expiration Date will
be paid a cash payment (Consent Fee) of US$2.50 for each
US$1,000 in principal amount of Bonds in respect of which such
consent has been delivered.  No accrued interest will be paid on
the Consent Fee.  Notwithstanding any other provision of the
Consent Solicitation, Pichincha's obligation to accept and pay
for the consents validly delivered (and not revoked) pursuant to
the Consent Solicitation is subject to and conditioned upon,
among other things, receipt of the Requisite Consents on or
prior to the Expiration Date.  Except for the extension of the
Expiration Date, all of the terms and conditions set forth in
the Solicitation Statement with respect to the Bonds remain
unchanged.

Standard Bank Plc is acting as the solicitation agent for the
Consent Solicitation. Holders may direct questions and requests
for assistance or copies of the Solicitation Statement to
Standard Bank Plc at the office of its New York affiliate:

   Standard New York Securities, Inc.,
   320 Park Avenue, New York, NY 10022,

   Attention: Jay Tom,
              Telephone: (212) 407-5174 (collect) or

   London office: Cannon Bridge House,
                  25 Dowgate Hill, London EC4R25B, England,

   Attention: Carl Piccolo,
              Telephone: +44(0)20 78153142 (collect).

Questions and requests for assistance or copies of the
Solicitation Statement may be directed to:

   Bondholder Communications Group
   28 Throgmorton Street, 1st Floor,
   London, EC2N 2AN, England,

   Attention: Betty Peralta,
              Telephone: +44 20 7382 4580,
              Facsimile: +44 20 7067 9239,
              E-mail: bperalta@bondcom.com or

New York office: 30 Broad Street, 46th Floor,
                 New York, NY 10004,

   Attention: Betty Peralta,
              Telephone: (212) 809-2663,
              Facsimile: (212) 437-9827,
              E-mail: bperalta@bondcom.com.

The Information and Tabulation Agent has established a web site
for the Consent Solicitation at http://www.bondcom.com/bp.  
Holders may also contact their broker, dealer, commercial bank,
trust company or other nominee for assistance concerning the
Tender Offer.

                      About Banco Pichincha

Banco Pichincha is Ecuador's largest bank with about 26% of
deposits and 28% of loans at March 2007.  Incorporated in 1906,
the group offers a wide array of services to corporate, middle
market and consumer customers.  The bank is tightly controlled
by Mr. Fidel Egas Grijalva who holds over 65% of the company's
stock.

                             *     *     *

As reported in the Troubled Company Reporter-Latin America on
Aug. 16, 2007, Fitch Ratings affirmed Banco Pichincha C.A. y
Subsidiarias' 'B-' foreign currency long-term issuer default
rating.  Fitch said the rating outlook is negative.



=============
G R E N A D A
=============

AMERICAN AIRLINES: To Add Miami-Grenada Non-Stop Flight Schedule
----------------------------------------------------------------
American Airlines Inc. will open another new route from South
Florida to the Caribbean this fall when the airline begins
nonstop service from Miami to the southern Caribbean island of
Grenada.

American Airlines will begin flying between Miami and Grenada on
Nov. 20, 2008, using Boeing 737-800 aircraft configured with 16
seats in First Class and 132 seats in the Main Cabin.

The airline's upcoming service from Miami is the only nonstop
service currently scheduled between South Florida and Grenada,
which is located approximately 100 miles off the coast of
Venezuela.

The new service complements existing flights to Grenada from San
Juan, Puerto Rico, offered by American Eagle, the regional
affiliate of American Airlines.

Known as the "Spice of the Caribbean" for the abundance of
spices the island produces, Grenada is also well-regarded for
its cool sea breezes, unhurried pace, picturesque towns, lush
rain forests, stunning beaches, and exquisite coral reefs.

"Grenada is a wonderful addition to American's schedule from
South Florida," said American Airlines Senior Vice President for
Miami, Caribbean and Latin America.  "It has much to offer
visitors, and American's convenient nonstop flight from Miami
puts it all virtually at South Florida's doorstep.  Our
connecting service via the Miami hub brings Grenada closer to
dozens of other cities as well."

"Visitors to Grenada can expect to experience some of the best
that the Caribbean has to offer, including lovely scenery,
magnificent weather, relaxing beaches, lively culture, and a
wide variety of activities," said Grenada's Minister of Tourism,
Hon. Clarice Modeste Curwen.  "We welcome American's nonstop
service from Miami, just as we welcome all those who come to see
and enjoy the Caribbean of their dreams."

Here is the airline's schedule between Miami and Grenada,
effective Nov. 20. (Northbound service begins Nov. 21).  Flights
operate daily, except during spring and fall, when service
operates five days a week.  All times shown are local.

From Miami to Grenada:

    Flight #                Departs                Arrives
    --------------------------------------------------------       
    2171                    5:00 p.m.              9:30 p.m.

From Grenada to Miami:

    Flight #                Departs                Arrives
    ---------------------------------------------------------
    2174                    9:30 a.m.              12:15 p.m.

Grenada is the third Caribbean destination from South Florida to
be added to American's schedule this year.  Earlier, American
announced it will begin nonstop service from Fort Lauderdale to
Kingston, Jamaica, in June, and from Miami to Antigua, also
starting Nov. 20.

These destinations join a list of other schedule enhancements
that American and American Eagle have recently made available to
South Florida travelers.  This past December, American began
nonstop flights from Miami to Barranquilla, Colombia, and Santa
Cruz, Bolivia, as well as from Fort Lauderdale to San Jose,
Costa Rica.  In addition, December also saw the start of nonstop
service from Miami to Phoenix on American, and from Miami to
Sarasota/Bradenton, Florida., and Savannah, Georgia, on American
Eagle.

Last month, American Eagle began nonstop flights from Miami to
Tallahassee, Florida.

                   About American Airlines

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

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
April 17, 2008, Fitch Ratings has affirmed AMR Corp.'s Issuer
default rating at 'B-' and Senior unsecured debt at 'CCC/RR6' as
well as its principal operating subsidiary, American Airlines,
Inc.'s Issuer default rating at 'B-' and Secured bank credit
facility at 'BB-/RR1'.  Fitch's rating outlook for both AMR
Corp. and American Airlines has been revised to stable from
positive.



=============
J A M A I C A
=============

AIR JAMAICA: Gov't to Launch Int'l Bidding Process for Airline
--------------------------------------------------------------
The Jamaica Information Service reports that Jamaican Prime
Minister Bruce Golding told the House of Representatives that an
international competitive bidding process will be launched to
identify prospective investors for Air Jamaica.

As reported in the Troubled Company Reporter-Latin America on
March 12, 2008, the Jamaican government set a March 2009
deadline for Air Jamaica's privatization.  Jamaica's Finance
Minister Audley Shaw said a divestment committee was formed and
is being supervised by Minister Without Portfolio in the Finance
Ministry Senator Don Wehby.

The Jamaica Information Services relates that Prime Minister
Golding said during his presentation in the 2008/09 Budget
Debate in the House of Representatives on April 22 that the
services of the International Finance Corp. have been engaged as
consultants/advisors in the divestment process.

Prime Minister Golding told the Jamaica Information Service that
the overall objectives of the divestment exercise include:

          -- the transfer of complete or substantial majority
             ownership and full management control of the
             airline to the private sector;

          -- the recapitalization of the airline;

          -- retention and long-term sustainability of Air
             Jamaica as the national carrier; and

          -- structural or contractual linkage to a major global
             carrier.

The government reportedly wants to divest Air Jamaica by the end
of the 2008/09 fiscal year.

"It is a key airlift provider [Air Jamaica] for the tourist
industry.  It is our flag carrier and Jamaicans, especially
those in the Diaspora, are emotionally attached to it.  However,
we cannot continue to pile up these losses on the backs of the
Jamaican taxpayer with no end in sight.  If we are able to
relieve the taxpayers of the annual losses incurred by Air
Jamaica, it will save the taxpayers more than J$10 billion per
year," Prime Minister Golding told the Jamaica Information
Service.

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.


AIR JAMAICA: To Launch Code Share Pact with Asian Airlines
----------------------------------------------------------
Ingrid Brown at the Jamaica Observer reports that Air Jamaica
will launch a code share accord with some Chinese and Japanese
airlines.  Japanese airline Ana is reportedly one of the
participants of the agreement.

The code share agreement is currently being worked out between
Jamaica, China and Japan, The Observer says, citing Minister
Bartlett.

According to The Observer, the code share pact is aimed at
facilitating airlift out of China and Japan "in anticipation of
a boom in tourist arrivals from that region."

Jamaican Tourism Minister Edmund Bartlett told The Observer that
he would be providing a full report on the airlift pact at the
Jamaica Product Exchange to be held at the Hilton Kingston Hotel
from April 25 to 27.

Minister Bartlett commented to The Observer, "It will come into
effect soon because Air Jamaica started an evening flight from
New York and that is the flight that is supposed to be
connecting with the Los Angeles flights coming from China and
Japan."

Minister Bartlett told The Observer that Jamaica, China, and
Japan were working to have an e-ticket arrangement in place,
which will allow the smooth transfer of passengers.

Once organized airlift is arranged out of China, Jamaican
hoteliers won't have enough rooms to put tourists in, The
Observer says, citing Jamaica Hotel and Tourist Association
President Wayne Cummings.  The Jamaica Hotel is anxiously
awaiting the direct airlift issues to be sorted out so the
sector could start benefiting from having organized groups of
tourists coming out of China, Mr. Cummings told The Observer.

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.


AIR JAMAICA: Contractor General to Investigate Heathrow Slots
-------------------------------------------------------------
Radio Jamaica reports that the Jamaican Contractor General will
launch a probe on the sale of Air Jamaica's slots at the
Heathrow airport in the United Kingdom.

The slots were sold too cheaply, Radio Jamaica says, citing
Jamaica's Finance Minister Audley Shaw.

According to Radio Jamaica, Minister Shaw accused the previous
administration of "gross dereliction of duty in the manner in
which it disposed of them [the slots] last year."

"The revenue given up is too large ... potentially multiplied by
seven, it amounts to J$52 million per slot, that's what we sold
for J$10 million," Minister Shaw told Radio Jamaica.

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.


CASH PLUS: Defense Lawyers to Seek Bail for Carlos Hill Again
-------------------------------------------------------------
The attorneys for Cash Plus Ltd.'s President Carlos Hill will
make another attempt to have their client released, The RJR News
Center reports.

As reported in the Troubled Company Reporter-Latin America on
April 21, 2008, the Half way Tree Criminal Court denied the
request for bail by the defense attorneys for Mr. Hill.  Mr.
Hill was charged with fraud after police officers raided his
house in response to complaints from investors who accused Cash
Plus of fraud.  Specifically, investors complained that cheques
received from the firm bounced.  Mr. Hill's brother Bertram and
Cash Plus' Chief Financial Officer Peter Wilson also faced fraud
charges.  The Hill brothers and Mr. Wilson were charged with
five counts of fraudulent conversion and one count of
conspiracy.

Mr. Hill's legal representatives will try to obtain bail from
the Jamaican Supreme Court, Radio Jamaica states.

Cash Plus Limited 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.

In April this year, the Supreme Court of Jamaica placed Cash
Plus into receivership. 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. Cash Plus was unable
to repay its investors. 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.
PricewaterhouseCoopers' accountant Kevin Bandoian was appointed
as joint receiver-manager for Cash Plus.



===========
M E X I C O
===========

AMERICAN AXLE: UAW Rejects Economic Offers; Firm Mulls Closures
---------------------------------------------------------------
The strike called by the United Auto Workers union at American
Axle & Manufacturing Holdings Inc.'s original U.S. locations
continued into its 57th day on Tuesday.  Approximately 3,650
associates are represented by the UAW at these five facilities
in Michigan and New York.  AAM and the UAW worked effectively
last week with the objective of reaching a new collective
bargaining agreement for the original U.S. locations.  Tentative
agreements were achieved on many issues and AAM was encouraged
by the progress.

On April 19, 2008, the UAW bargaining team left the
table and did not return until the afternoon of Monday,
April 21, 2008.

Although AAM has made several economic proposals to the UAW with
"all-in" hourly wage and benefit packages that were considerably
higher than the market rate of AAM's UAW-represented competitors
in the U.S., the UAW has repeatedly rejected these economic
proposals.

AAM needs a U.S. market competitive labor agreement for the
original U.S. locations.  This is necessary because the UAW
previously negotiated market competitive labor agreements with
many of AAM's U.S. competitors in the driveline market segment.
This includes Dana, FormTech, Chinese-owned Neapco and Indian-
owned Bharat Forge.  The "all-in" wage and benefit package
granted by the UAW to these companies averages approximately
US$30 per hour.

In order for AAM to be able to compete for new business and
sustain employment at the original U.S. locations, the UAW must
offer AAM economic terms and conditions that are comparable to
those it has already granted to AAM's competitors.  The UAW's
latest economic proposal to AAM dated April 14, 2008, included
an "all-in" wage and benefit package that is almost double the
market rate established by the UAW with AAM's competitors.

If the UAW is not willing to consider a U.S. market competitive
labor agreement for AAM, a Michigan-based company, similar to
the agreements it has given to companies based in China and
India, AAM will be forced to plan for the potential closure of
some, or all, of these uncompetitive facilities.

"AAM has been, and continues to be, totally committed to
ensuring that all of AAM's manufacturing operations are viable,
profitable and sustainable," Co-Founder, Chairman and CEO
Richard E. Dauch said.  "AAM's negotiating team has never left
the bargaining table and will continue to work in good faith to
achieve a market-competitive labor agreement that will allow the
original U.S. locations to compete on a level playing field in
the U.S."

As reported in the Troubled Company Reporter on April 11, 2008,
AAM admits the new contract was better, but the total cost was
still roughly 200% above the market rate for Axle's competitors
in the U.S. auto parts industry.

Last month, AAM's Chief Executive Officer Richard Dauch berated
the UAW for the work stoppage that has caused a chain reaction
in the U.S. auto industry, including the closure of 30 General
Motors Corp. plants and a Chrysler LLC plant in Delaware.  The
CEO added that AAM may end up outsourcing its manufacturing
division as a resort.  CEO Dauch added that AAM has the right to
outsource its work since they have facilities all over the globe
–- Mexico, South America, Europe, and Asia.  Mr. Dauch added
that AAM will not be forced into bankruptcy.

AAM is demanding wage reductions of up to $14 an hour as well as
elimination of future retiree health care and defined benefit
pensions for active workers.  AAM, which earned $37 million on
US$3.25 billion sales in 2007, wanted a deal like those UAW gave
GM, Ford Motor Co., Chrysler, and parts makers Delphi Corp. and
Dana Corp., insisting that cutting labor costs is essential to
be competitive.  The auto parts supplier is asking the union to
approve US$20 to US$30 hourly wage cuts from US$73 per hour to
US$27 per hour, arguing that its original U.S. locations
incurred losses for three years.

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

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
April 7, 2008, Moody's Investors Service placed American Axle &
Manufacturing Holdings, Inc.'s Ba3 Corporate Family Rating under
review for downgrade.


ASARCO LLC: Grupo Mexico Has Poor Stewardship Record, Union Says
----------------------------------------------------------------
The United Steelworkers union disclosed a report examining Grupo
Mexico S.A. de C.V.'s stewardship record.

The record shows the potential impact on the long-term viability
of ASARCO LLC and on U.S. workers, communities and the
environment if Grupo Mexico were to regain control of ASARCO
when it exits bankruptcy in the coming months.

The report, titled "Grupo Mexico and ASARCO: The Record Speaks
for Itself," looks at a number of Grupo Mexico's past business
practices, as described in various lawsuits brought against the
company and independent media reports.

They include allegations that Grupo Mexico:

  -- stripped ASARCO of its most valuable assets, leaving the
     company insolvent and unable to pay millions in asbestos
     and environmental liabilities;

  -- disregards the health and safety of its employees and
     their communities;

  -- has a poor environmental record; and

  -- has poor employee relations.

The outcome of the reorganization process will have dramatic
impact on ASARCO's most significant stakeholders -- its
employees and the Department of Justice, on behalf of the
nation's taxpayers, who are the company's largest creditors.

The Steelworkers contend that any reorganization plan must
promote both sustainable employment and a credible plan for
addressing ASARCO's environmental legacy.  Terry Bonds, Director
of USW District 12, said, "Based on Grupo Mexico's record, we
believe it is clear that Grupo's resumption of control of ASARCO
would be detrimental to the interests of U.S. workers and
communities and the nation's taxpayers.  This is something that
the public needs to know."

The full report can be downloaded from:

             http://researcharchives.com/t/s?2b08

                         About ASARCO

Based in Tucson, Arizona, ASARCO LLC -- http://www.asarco.com/
-- is an integrated copper mining, smelting and refining
company.  Grupo Mexico S.A. de C.V. is ASARCO's ultimate parent.  
The Company filed for chapter 11 protection on Aug. 9, 2005
(Bankr. S.D. Tex. Case No. 05-21207).  James R. Prince, Esq.,
Jack L. Kinzie, Esq., and Eric A. Soderlund, Esq., at Baker
Botts L.L.P., and Nathaniel Peter Holzer, Esq., Shelby A.
Jordan, Esq., and Harlin C. Womble, Esq., at Jordan, Hyden,
Womble & Culbreth, P.C., represent the Debtor in its
restructuring efforts.  Lehman Brothers Inc. provides the ASARCO
with financial advisory services And investment banking
services.  Paul M. Singer, Esq., James C. McCarroll, Esq., and
Derek J. Baker, Esq., at Reed Smith LLP give legal advice to the
Official Committee of Unsecured Creditors and David J. Beckman
at FTI Consulting, Inc., gives financial advisory services to
the Committee.  When the Debtor filed for protection from its
creditors, it listed US$600 million in total assets and
US$1 billion in total debts.

The Debtor has five affiliates that filed for chapter 11
protection on April 11, 2005 (Bankr. S.D. Tex. Case Nos. 05-
20521 through 05-20525).  They are Lac d'Amiante Du Quebec Ltee,
CAPCO Pipe Company, Inc., Cement Asbestos Products Company, Lake
Asbestos of Quebec, Ltd., and LAQ Canada, Ltd.  Details about
their asbestos-driven chapter 11 filings have appeared in the
Troubled Company Reporter since April 18, 2005.

Encycle/Texas, Inc. (Bankr. S.D. Tex. Case No. 05-21304),
Encycle, Inc., and ASARCO Consulting, Inc. (Bankr. S.D. Tex.
Case No. 05-21346) also filed for chapter 11 protection, and
ASARCO has asked that the three subsidiary cases be jointly
administered with its chapter 11 case.  On Oct. 24, 2005,
Encycle/Texas' case was converted to a Chapter 7 liquidation
proceeding.  The Court appointed Michael Boudloche as
Encycle/Texas, Inc.'s Chapter 7 Trustee.  Michael B. Schmidt,
Esq., and John Vardeman, Esq., at Law Offices of Michael B.
Schmidt represent the Chapter 7 Trustee.

ASARCO's affiliates, AR Sacaton LLC, Southern Peru Holdings LLC,
and ASARCO Exploration Company Inc., filed for Chapter 11
protection on Dec. 12, 2006 (Bankr. S.D. Tex. Case No. 06-20774
to 06-20776)


DESARROLLADORA HOMEX: 1Q 2008 Net Income Up 7.9% to MXN504.3Mil.
----------------------------------------------------------------
Desarrolladora Homex S.A.B. de C.V. reported results for the
first quarter ended March 31, 2008.

      New Mexican Accounting Reporting Standard for 2008

Since companies in Mexico no longer follow inflation accounting
(Bulletin B-10), 1Q08 figures are presented without inflation
adjustment; while the first quarter 2007 figures are presented
with inflation adjustment through Dec. 31, 2007.  Therefore, the
results of the two quarterly periods are not directly
comparable.

Additionally, under the new accounting Bulletin D-6, the company
is now required to capitalize interest expense, that it
previously expensed on a current basis.

                          Highlights

   -- Total revenues in the 2008 first quarter increased 18.6%
      to MXN3.5 billion (US$325 million) from MXN2.9 billion
      (US$274 million) in the year-ago period.

   -- Earnings before interest, taxes, depreciation and
      amortization (EBITDA) adjusted for other income, during
      the quarter was MXN840.2 million (US$79 million), a 19.7%
      increase from the MXN702.2 million (US$66 million)
      reported in the first quarter of 2007.

   -- Adjusted EBITDA margin increased 21 basis points to 24.1%
      in the first quarter of 2008 from 23.9% adjusted EBITDA
      margin reported in the first quarter of 2007.

   -- Net income increased 7.9% in the first quarter of 2008 to
      MXN504.3 million (US$47 million) from MXN467.2 million
      (US$44 million) in the first quarter of 2007.  Earnings
      per share for the recent period were MXN1.51 compared to
      MXN1.39 in the comparable quarter of 2007.

   -- Overall working capital cycle improved to 320 days in the
      first quarter of 2008 from the 331 days recorded in the
      first quarter of 2007.
    
"Homex started the year on the right foot by delivering solid
21.8% revenue growth in nominal terms, which demonstrates our
company's leadership and ability to gain market share by
replicating our business model across Mexico.  Our strong
financial performance also shows that the fundamentals in the
mortgage industry in Mexico remain strong despite the turbulent
times in the United States housing market," said Desarrolladora
Homex's Chief Executive Officer, Gerardo de Nicolas.  "We remain
confident that 2008 will be another great year for Homex, and
that we will outpace industry revenue growth and gain additional
operational efficiencies."

                  About Desarrolladora Homex

Desarrolladora Homex S.A.B. de C.V. (NYSE: HXM, BMV: HOMEX) --
http://www.homex.com.mx-- is a vertically integrated home  
development company focused on affordable entry-level and
middle-income housing in Mexico.  It is one of the most
geographically diverse homebuilders in the country.  Homex is
the largest homebuilder in Mexico, based on revenues, number of
homes sold and net income.

                        *      *      *

As reported in the Troubled Company Reporter-Latin America on
Sept. 19, 2007, Moody's affirmed Desarrolladora Homex's national
scale issuer rating at A3.mx, and global scale local currency
issuer rating at Ba3.  Moody's said the rating outlook remains
positive.

As reported in the Troubled Company Reporter-Latin America on
March 17, 2008, Standard & Poor's Ratings Services said that
Desarrolladora Homex S.A.B. de C.V.'s (BB-/Stable/--)
announcement that it has received approval from its shareholders
to establish a US$250 million share repurchase program does not
have an immediate impact on the current rating or outlook
assigned to the issuer.  S&P expects a negative rating action
should be expected if the company's share repurchase program
leads to additional indebtedness and/or a significant reduction
in its cash balance.


DIOMED HOLDINGS: Delivers Schedules of Assets and Liabilities
-------------------------------------------------------------
Diomed Holdings Inc. and Diomed Inc. submitted to the United
States Bankruptcy Court for the District of Massachusetts their
schedules of assets and debts, disclosing:

  Schedule                        Assets      Liabilities
  --------                      ----------    -----------
  A. Real Property
  B. Personal Property       US$19,936,479
  C. Property Claimed as
     Exempt
  D. Creditors Holding                       US$9,536,090
     Secured Claims
  E. Creditors Holding                            162,113
     Unsecured Priority
     Claims
  F. Creditors Holding                          5,045,282
     Unsecured Nonpriority
     Claims
                                ----------    -----------
  TOTAL                      US$19,936,479  US$14,743,485

                      About Diomed Holdings

Based in Andover, Massachussetts, Diomed Holdings Inc. (AMEX:
DIO) -- http://www.evlt.com/and  http://www.diomedinc.com/--  
develops and commercializes minimal and micro-invasive medical
procedures that use its proprietary laser technologies and
disposable products.  Diomed's EVLT(R) laser vein ablation
procedure is used in varicose vein treatments.  Diomed also
provides photodynamic therapy for use in cancer treatments, and
dental and general surgical applications.  The company sell its
products through a direct sales force, and a network of
distributors in the EU, Latin America and Mexico, the UK, the
US, Japan, Australia, South Korea, the Peoples' Republic of
China, and Canada.

The company and its affiliate, Diomed Inc., filed for Chapter 11
protection on March 14, 2008 (Bankr. D. Mass. Case Nos. 08-40750
and 08-40749).  Douglas R. Gooding, Esq., at Choate Hall &
Stewart, represents the Debtors in their restructuring efforts.

The American Stock Exchange delisting of Diomed's stock is
effective on April 28, 2008, unless postponed by the Securities
and Exchange Commission.


DIOMED HOLDINGS: Engages Wolf Greenfield as Special Counsel
-----------------------------------------------------------
Diomed Holdings Inc. and Diomed Inc. obtained permission from
the United States Bankruptcy Court for the District of
Massachusetts to hire Wolf, Greenfield, and Sacks, P.C., as
their special counsel.

The firm will provide special intellectual property legal
services to the Debtors as well as patent maintenance work.

In the motion, the Debtors relate that since August 2003, the
firm represented them as outside intellectual property counsel
in regard to patent litigation, maintenance and other matters.

Among the litigation that Wolf Greenfield handled on behalf of
the Debtors is the case against AngioDynamics Inc., which is a
patent infringement suit resulting in a judgment in facor of the
Debtors of about US$14.7 million.  According to a court
document, the defendants in that case appealed the judgment, and
oral argument on the merits of the appeal was set for April 10,
2008.  Diomed also disclosed four other cases in which Wolf
Greenfield represented the Debtors.

The Debtors assured that Wolf Greenfield's role won't interfere
with that of its general bankruptcy counsel, McGuireWoods LLP,
and local counsel, Choate, Hall & Stewart LLP.

Based on the court document, Wolf Greenfield did not waive its
claim of about US$511,272 for unpaid fees relating to
prepetition legal services it rendered to the Debtors.

Wolf Greenfield's current rates range from US$350 to US$685 for
attorneys and US$170 for paralegals.

                      About Diomed Holdings

Based in Andover, Massachussetts, Diomed Holdings Inc. (AMEX:
DIO) -- http://www.evlt.com/and  http://www.diomedinc.com/--  
develops and commercializes minimal and micro-invasive medical
procedures that use its proprietary laser technologies and
disposable products.  Diomed's EVLT(R) laser vein ablation
procedure is used in varicose vein treatments.  Diomed also
provides photodynamic therapy for use in cancer treatments, and
dental and general surgical applications.  The company sell its
products through a direct sales force, and a network of
distributors in the EU, Latin America and Mexico, the UK, the
US, Japan, Australia, South Korea, the Peoples' Republic of
China, and Canada.

The company and its affiliate, Diomed Inc., filed for Chapter 11
protection on March 14, 2008 (Bankr. D. Mass. Case Nos. 08-40750
and 08-40749).  Douglas R. Gooding, Esq., at Choate Hall &
Stewart, represents the Debtors in their restructuring efforts.

The American Stock Exchange delisting of Diomed's stock is
effective on April 28, 2008, unless postponed by the Securities
and Exchange Commission.


FIAT SPA: Shows Interest in Acquiring Serb Car Maker Zastava
------------------------------------------------------------
Fiat SpA has expressed its intention to acquire Serbia's lone
auto manufacturer, Zastava, various reports say citing outgoing
Economic Minister Mladjan Dinkic.  Representatives from Fiat are
expected to arrive Serbia this week to start talks.

The sale of Zastava was supposed to occur this month but was
later moved to May due to the elections.  Fiat, reports add, is
said to be planning to invest up to EUR300 million in Zastava.

Turin, Italy-based Fiat SpA -- http://www.fiatgroup.com/--     
(BIT:F) is principally engaged in the design, manufacture and
sale of automobiles, trucks, wheel loaders, excavators,
telehandlers, tractors and combine harvesters.  Through its
subsidiaries, Fiat operates mainly in five business areas:
Automobiles, including sectors led by Maserati SpA, Ferrari SpA
and Fiat Group Automobiles SpA, which design, produce and sell
cars under the Fiat, Alfa Romeo, Lancia, Fiat Professional,
Abarth, Ferrari and Maserati brands; Agricultural and
Construction Equipment, which is led by Case New Holland Global
NV; Trucks and Commercial Vehicles, which is led by Iveco SpA;
Components and Production Systems, which includes the sectors
led by Magneti Marelli Holding SpA, Teksid SpA, Comau SpA and
Fiat Powertrain Technologies SpA, and Other Businesses, which
includes the sectors led by Fiat Services SpA, a publishing
house Editrice La Stampa SpA and an advertising agency
Publikompass SpA.

Outside Europe, the company has subsidiaries in the United
States, Japan, India, China, Mexico, Brazil and Argentina, among
others.

                        *     *     *

As of March 13, 2008, Fiat S.p.A. and its subsidiaries carries
Ba3 Corporate Family and Senior Unsecured ratings from Moody's
Investors Service, which said the outlook is positive.

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



=======
P E R U
=======

FREEPORT-MCMORAN COPPER: Eyes US$6.5 Billion Operating Cash Flow
----------------------------------------------------------------
Freeport-McMoRan Copper & Gold Inc.'s Chief Executive Officer
Richard Adkerson told Business News Americas that the firm will
generate US$6.5 billion in operating cash flow for this year
with sales of 4.2 billion pounds of copper, 1.4 million ounces
of gold, and 75 million pounds of molybdenum.

According to BNamericas, Freport-McMoRan Copper's estimates use
modeled prices of:

          -- US$3.75 per pound for copper,
          -- US$900 per ounce for gold, and
          -- US$30.00 per pound for molybdenum.

Mr. Adkerson told BNamericas, "We have the ability to sell all
the copper we produce -- and plan to produce -- at market
prices."

China and the "developing world" have been driving commodity
prices higher, BNamericas states.

Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX)
-- http://www.fcx.com/-- is an international mining industry
leader based in North America with large, long-lived,
geographically diverse assets and significant proven and
probable reserves of copper, gold and molybdenum.  Freeport-
McMoRan has one of the most dynamic portfolios of operating,
expansion and growth projects in the copper mining industry.
The Grasberg mine in Indonesia, the world's largest copper and
gold mine in terms of reserves, is the company's key asset.
Freeport-McMoRan also operates significant mining operations in
North and South America and is developing the world-class Tenke
Fungurume project in the Democratic Republic of Congo.

The completion of Freeport-McMoran's acquisition further expands
the company's global operations.  The former Phelps Dodge Corp.
has mining operations in Chile, Peru, Colombia, Venezuela and
Ecuador, among others.

                         *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 22, 2008, Moody's Investors Service upgraded Freeport-
McMoRan Copper & Gold Inc.'s corporate family rating to Ba1 from
Ba2 and the firm's US$6.0 billion senior unsecured notes to Ba2
(LGD5, 74%) from Ba3.  Moody's changed the outlook to stable
from positive.


FREEPORT-MCMORAN COPPER: High Metal Prices Boost Firm's Profit
--------------------------------------------------------------
Freeport-McMoRan Copper & Gold Inc. told Business News Americas
that its net earnings increased to US$1.1 billion in the first
quarter 2008, from US$476 million in the first quarter 2007, due
to high metals prices, which offset a decline in production.

According to BNamericas, the first quarter 2008 is Freeport-
McMoRan Copper's best financial quarter yet.

BNamericas relates that revenues rose to US$5.67 billion in the
first quarter 2008, compared to US$2.25 billion in the first
quarter 2007, and copper cash costs increased to US$1.06 per
pound from US$0.40 per pound.  Freeport-McMoRan Copper treats
its gold and molybdenum as copper's byproducts.

The report says that Freeport-McMoRan Copper produced
880 million pounds of copper, 275,000 ounces of gold, and
18 million pounds of molybdenum in the first quarter of 2008,
compared to 1.08 billion pounds of copper, 1.10 million ounces
of gold, and 17 million pounds of molybdenum in the first
quarter of 2007.

Freeport-McMoRan Copper's Chief Executive Officer Richard
Adkerson said during a conference call that the firm's output
dropped in the first quarter 2008 mainly due to a decline in
grades from the Grasberg copper-gold mine in Indonesia as ore
extraction cycled through a lower-grade area.  Mr. Adkerson told
BNamericas that he expects Grasberg to return to a higher-grade
area in the middle of 2008.

BNamericas notes that Freeport-McMoRan Copper's stakes in South
American operations resulted in a total of 353 million pounds of
copper and 26,000 ounces of gold production in the first quarter
2008, compared to 307 million pounds of copper and 24,000 ounces
of gold in the same period last year.

Mr. Adkerson told BNamericas that improved performance of
Freeport-McMoRan Copper's Chilean and Peruvian operations helped
in partially offsetting the lower production from Grasberg.

Production is strong in Peru with exploration continuing to open
up opportunities for future output at Cerro Verde and soon
Freeport-McMoRan Copper will launch a sulfide development plan
to extend the life of El Abra by at least 10 years "after the
imminent close of its oxide output," BNamericas says, citing Mr.
Adkerson.

Freeport-McMoRan Copper's Americas Division President Harry
Conger said in a conference call that production in Chile is
facing a challenging year in terms of energy supply.  BNamericas
notes that the firm's operations connected to Chile's central
grid are suffering a drought "that threatens to cause programmed
electricity rationing by the government, while operations
plugged into the northern grid are running on more expensive
diesel as a result of natural gas cuts from Argentina."

Freeport-McMoRan Copper believes that rain "will come again,"
BNamericas states, citing Mr. Conger.


Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX)
-- http://www.fcx.com/-- is an international mining industry
leader based in North America with large, long-lived,
geographically diverse assets and significant proven and
probable reserves of copper, gold and molybdenum.  Freeport-
McMoRan has one of the most dynamic portfolios of operating,
expansion and growth projects in the copper mining industry.
The Grasberg mine in Indonesia, the world's largest copper and
gold mine in terms of reserves, is the company's key asset.
Freeport-McMoRan also operates significant mining operations in
North and South America and is developing the world-class Tenke
Fungurume project in the Democratic Republic of Congo.

The completion of Freeport-McMoran's acquisition further expands
the company's global operations.  The former Phelps Dodge Corp.
has mining operations in Chile, Peru, Colombia, Venezuela and
Ecuador, among others.

                         *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 22, 2008, Moody's Investors Service upgraded Freeport-
McMoRan Copper & Gold Inc.'s corporate family rating to Ba1 from
Ba2 and the firm's US$6.0 billion senior unsecured notes to Ba2
(LGD5, 74%) from Ba3.  Moody's changed the outlook to stable
from positive.



====================
P U E R T O  R I C O
====================

HORIZON LINES: Extends Walgreens Delivery Contract to Two Years
---------------------------------------------------------------
Horizon Lines, Inc., has renewed its contract with Walgreens to
remain the drugstores' primary carrier to Puerto Rico for the
next two years.

Walgreens currently operates 6,271 stores nationwide including
73 stores in Puerto Rico.  As the drugstore chain continues its
growth on the island, Horizon Lines will be instrumental in
keeping each store stocked with more than 25,000 everyday items
and medications.

"Horizon Lines moves thousands of container loads of merchandise
to Puerto Rico for us each year," said  Walgreens director of
corporate transportation, Tom Stedman.  "Their service has been
consistently fast and dependable. With Horizon Lines as our
primary carrier, we can feel confident that our merchandise will
arrive on time and damage free."

"We take pride in our recognized service delivery and look
forward to playing a role in the growth of the nation's largest
retail pharmacy chain.  Horizon Lines is committed to
exceptional value and customer satisfaction and we will continue
to provide reliable, on-time logistics and shipping solutions
for Walgreens into the future," said Horizon Lines Puerto Rico
Division's senior vice president and general manager, Gabriel
Serra.

Horizon Lines offers the most comprehensive service package to
Puerto Rico, with two direct weekly sailings from Jacksonville,
one weekly sailing from Elizabeth, New Jersey, and the only
direct vessel call to the U.S. Gulf with service from Houston
every 14 days.

Headquartered in Charlotte, North Carolina, Horizon Lines Inc.
(NYSE: HRZ) -- http://www.horizon-lines.com/-- is a domestic  
ocean shipping and integrated logistics company comprised of two
primary operating subsidiaries.  Horizon Lines LLC operates a
fleet of 21 U.S.-flag containerships and 5 port terminals
linking the continental United States with Alaska, Hawaii, Guam,
Micronesia and Puerto Rico.  Horizon Logistics LLC offers
customized logistics solutions to shippers from a suite of
transportation and distribution management services designed by
Aero Logistics, information technology developed by Horizon
Services Group and intermodal trucking and warehousing services
provided by Sea-Logix.

                          *     *     *

Moody's Investor Services placed Horizon Lines Inc.'s long-term
corporate family and probability of default ratings at 'B1' in
July 2007.  The ratings still hold to date with a stable
outlook.

As reported in the Troubled Company Reporter-Latin America on
April 22, 2008, Standard & Poor's Ratings Services said that its
ratings and outlook on Horizon Lines Inc. (BB-/Stable/--) are
not affected at this time by the shipping company's confirmation
that federal agents served search warrants and a grand jury
subpoena on April 17, relating to an investigation of pricing
practices of ocean carriers operating in the Puerto Rico trade.


MUSICLAND HOLDING: Pursues US$145 Mil. in Damages From Best Buy
---------------------------------------------------------------
Hobart Truesdell, as Responsible Person in Musicland Holding
Corp. and its debtor-affiliates' Chapter 11 cases, filed an
amended complaint asking the U.S. Bankruptcy Court for the
Southern District of New York to re-characterize as equity
investment the funds Best Buy Co., Inc., advanced to or on
behalf of The Musicland Group, Inc.

The Court, on Jan. 18, 2008, appointed Mr. Truesdell to serve as
Responsible Person on behalf of the Debtors' estates.  Pursuant
to the Court order, the Responsible Person was automatically
deemed to substitute the Official Committee of Unsecured
Creditors, which originally commenced the complaint against Best
Buy.

Through the complaint, the Responsible Person seeks monetary
damages for:

  (a) Best Buy's receipt of fraudulent transfers, illegal
      dividends or unlawful insider payments totaling more than
      US$145,000,000; and

  (b) the dereliction in duties on behalf of the Debtors'
      officers and directors who knew, should have known, or
      were otherwise mistaken to the fact, that the execution of
      the credit-type documents and the approximately
      US$145,000,000 in transfers to Best Buy were improper.

As reported in the Troubled Company Reporter on Jan. 25, 2008,
the Official Committee of Unsecured Creditors in the Debtors'
cases asked the Court to recharacterize as an equity investment
the funds Best Buy advanced to or on behalf of The Musicland
Group Inc.  In addition, the Committee also wants Best Buy to
disgorge US$145,385,892 in payments that Musicland made.

The Committee alleged that Best Buy and certain officers and
directors of Musicland engineered a series of transactions
designed to disguise Best Buy's capital investment as debt in an
attempt to recover its investment.

                    About Musicland Holding

Based in New York, New York, Musicland Holding Corp., is a
specialty retailer of music, movies and entertainment-related
products in the United States and Puerto Rico.  The Debtor and
14 of its affiliates filed for chapter 11 protection on Jan. 12,
2006 (Bankr. S.D.N.Y. Lead Case No. 06-10064).  James H.M.
Sprayregen, Esq., at Kirkland & Ellis, represents the Debtors in
their restructuring efforts.   Mark T. Power, Esq., at Hahn &
Hessen LLP, represents the Official Committee of Unsecured
Creditors.  At March 31, 2007, the Debtors disclosed
US$20,121,000 in total assets and US$321,546,000 in total
liabilities.

On May 12, 2006, the Debtors filed their Joint Plan of
Liquidation with the Court.  On Sept. 14, 2006, they filed an
amended Plan and a Second Amended Plan on Oct. 13, 2006.  The
Court approved the adequacy of the Amended Disclosure Statement
on Oct. 13, 2006.

The Debtor's Second Amended Joint Plan of Liquidation was
declared effective as of Jan. 30, 2008.  (Musicland Bankruptcy
News, Issue No. 48; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


MUSICLAND HOLDING: Panel & H. Truesdell Agree to Replace Counsel
----------------------------------------------------------------
Hobart G. Truesdell, a Responsible Person in Musicland Holding
Corp. and its debtor-affiliates' Chapter 11 cases, and a special
committee formed pursuant to the Debtors' Plan of Liquidation
entered into a stipulation agreeing to replace current counsel
Kirkland & Ellis LLP and Curtis, Mallet-Prevost, Colt & Mosle
LLP, with a new counsel.

Pursuant to the Debtors' Plan of Liquidation, a Plan committee
was appointed on the Plan effective date, Jan. 30, 2008.  The
Plan Committee already asked petitioned Mr. Truesdell of Walker,
Truesdell & Associates, Inc. for the substitution.

Pursuant to the Responsible Person's initial post-confirmation
report, he has undertaken efforts to consolidate the various
professional performing services for the Debtors' estates to
minimize costs and promote an efficient administration of the
wind down efforts.

The Responsible Person, at the Plan Committee's request, wants
to substitute Kirkland & Ellis and Curtis Mallet-Prevost.  The
Responsible Person also wants for Hahn & Hessen LLP and Paul,
Weiss, Rifkind, Wharton & Garrison LLP to represent the post-
confirmation Debtors in all ongoing and future matters.

In a Court-approved stipulation, the parties agree that:

  (1) Kirkland & Ellis and Curtis Mallet-Prevost are no longer
      retained as bankruptcy counsel for the Debtors and are
      relieved of all duties and obligations owed to the Debtors
      provided that Kirkland & Ellis and Curtis Mallet-Prevost:

         * have a continuing obligation to maintain privileged
           communications confidential;

         * have an obligation to apply unused prepetition
           retainer, if any, toward any final fees awarded;

         * agree to maintain all files with respect to the
           Debtors for a period of no less than three years; and

         * will cooperate with all reasonable requests for
           information or files in their possession, as the case
           may be, made by the Responsible Person;  
       
  (2) Kirkland & Ellis and Curtis Mallet-Prevost will be paid
      their reasonable fees and expenses in connection with any
      services rendered in connection with responding to any
      requests by the Responsible Person or in complying with
      any obligations the law firms may have by agreement,
      rules, or law;
             
  (3) Hahn & Hessen and Paul Weiss will appear and represent
      the post-confirmation Debtors with regard to any and all
      matters, without limitation, brought before the Bankruptcy
      Court or any other Court with respect to the Chapter 11
      Cases;
     
  (4) Kirkland & Ellis and Curtis Mallet-Prevost will apply for
      compensation and reimbursement in accordance with the
      procedures set forth in Sections 330 and 331 of the
      Bankruptcy Code, other bankruptcy law, and the Interim
      Compensation Procedures Order; and

  (5) With respect to all professional services rendered and
      expenses incurred by Kirkland & Ellis and Curtis Mallet-
      Prevost in connection with the wind-down and transfer of
      files and information to Hahn & Hessen and Paul Weiss,
      Kirkland & Ellis and Curtis Mallet-Prevost will be paid by
      the post-confirmation Debtors in the ordinary course of
      business pursuant to Article 3(E)(2) of the Plan.

                    About Musicland Holding

Based in New York, New York, Musicland Holding Corp., is a
specialty retailer of music, movies and entertainment-related
products in the United States and Puerto Rico.  The Debtor and
14 of its affiliates filed for chapter 11 protection on Jan. 12,
2006 (Bankr. S.D.N.Y. Lead Case No. 06-10064).  James H.M.
Sprayregen, Esq., at Kirkland & Ellis, represents the Debtors in
their restructuring efforts.   Mark T. Power, Esq., at Hahn &
Hessen LLP, represents the Official Committee of Unsecured
Creditors.  At March 31, 2007, the Debtors disclosed
US$20,121,000 in total assets and US$321,546,000 in total
liabilities.

On May 12, 2006, the Debtors filed their Joint Plan of
Liquidation with the Court.  On Sept. 14, 2006, they filed an
amended Plan and a Second Amended Plan on Oct. 13, 2006.  The
Court approved the adequacy of the Amended Disclosure Statement
on Oct. 13, 2006.

The Debtor's Second Amended Joint Plan of Liquidation was
declared effective as of Jan. 30, 2008.  (Musicland Bankruptcy
News, Issue No. 48; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


MUSICLAND HOLDING: Discloses Post-Confirmation Distributions
------------------------------------------------------------
Pursuant to Section 1106 of the U.S. Bankruptcy Code and the
Confirmation Order, Hobart Truesdell, as Responsible Person on
behalf of the Musicland Holding Corp.'s estates, filed initial
post-confirmation status reports.

                          First Report

Mr. Truesdell disclosed that from the Jan. 18, 2008,
Confirmation Date to March 3, 2008, he made distributions
aggregating:

  -- US$2,551,122, to 171 holders of allowed priority tax
     claims;

  -- US$1,074,357, to 55 holders of allowed secured,
     administrative and other priority claims; and

  -- US$250,000, to Wachovia, to be held by the bank in an
     interest-bearing special reserve account.

The U.S. Bankruptcy Court for the Southern District of New York
authorized Mr. Truesdell to settle with 11 preference and
potential defendants that provided for US$375,488, in cash
payments to the Debtors' estates, and the waiver of
US$1,672,078, in unsecured claims against the Debtors' estates.

Mark T. Power, Esq., at Hahn & Hessen LLP, in New York, related
that the Mr. Truesdell has continued his review on claims files
in the Debtors' Chapter 11 cases and engaged in discussions with
claimants, including those holding unresolved claims subject to
the Debtors' prior claims objections.  Mr. Truesdell is in the
reconciliation process of 340 claims consisting of secured,
administrative and or priority claims, aggregating US$4,463,511.

Mr. Truesdell has undertaken efforts to consolidate the
professionals performing services for the Debtors' estates to
minimize costs and promote an efficient administration of the
wind down effort, Mr. Power said.

                          Second Report

Mr. Truesdell discloses in his second report that from March 4,
to April 15, 2008, he distributed US$72,833, to 30 holders of
allowed secured, administrative and priority claims.

He settled with five preference defendants and potential
defendants that provided for US$232,000, in cash payments to the
Debtors' estates and the waiver of US$1,766,443, in unsecured
claims against the Debtors' estates.  

He has also obtained three judgments against:

  * The Express Group, Inc. for US$52,856;
  * Walking Billboards, Inc. for US$69,582; and
  * Retail Choice LLC for US$100,526

Mr. Truesdell has filed five omnibus objections to 377 claims
made up of secured, administrative, and priority claims
aggregating US$5,966,181.  In addition, he filed individual
objections to five claim holders, which objections  are pending
Court ruling on May 13, 2008.

                    About Musicland Holding

Based in New York, New York, Musicland Holding Corp., is a
specialty retailer of music, movies and entertainment-related
products in the United States and Puerto Rico.  The Debtor and
14 of its affiliates filed for chapter 11 protection on Jan. 12,
2006 (Bankr. S.D.N.Y. Lead Case No. 06-10064).  James H.M.
Sprayregen, Esq., at Kirkland & Ellis, represents the Debtors in
their restructuring efforts.   Mark T. Power, Esq., at Hahn &
Hessen LLP, represents the Official Committee of Unsecured
Creditors.  At March 31, 2007, the Debtors disclosed
US$20,121,000 in total assets and US$321,546,000 in total
liabilities.

On May 12, 2006, the Debtors filed their Joint Plan of
Liquidation with the Court.  On Sept. 14, 2006, they filed an
amended Plan and a Second Amended Plan on Oct. 13, 2006.  The
Court approved the adequacy of the Amended Disclosure Statement
on Oct. 13, 2006.

The Debtor's Second Amended Joint Plan of Liquidation was
declared effective as of Jan. 30, 2008.  (Musicland Bankruptcy
News, Issue No. 48; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


PATHEON INC: Undertakes Series of Events on Restructuring Plan
--------------------------------------------------------------
Patheon Inc. completed the sale of its York Mills facility
located in Toronto, Canada, for US$12.3 million effective
April 15, 2008.

The agreement to sell the facility was entered into on Dec. 31,
2007 as part of Patheon's global network restructuring plan.  
Patheon is currently in the process of transferring all
commercial production and development services undertaken at its
York Mills facility to, primarily, its Whitby facility, with a
smaller portion of activity being transferred to the company's
Mississauga and Cincinnati facilities.  This is primarily
intended to improve capacity utilization and profitability at
the continuing Canadian sites.

Patheon is de-commissioning the York Mills facility and has
leased back the facility for up to two years in order to
facilitate this process.

"We are pleased that we have completed another step in our
global restructuring plan and are now focused on consolidating
our resources at Whitby and improving our productivity in our
Canadian Operations," Wes Wheeler, chief executive officer,
said.

On Feb. 19, 2008, Patheon Inc. reported changes in the roles of
several of the company's senior executives.

Nick DiPietro has now assumed the role as executive vice-
president, corporate development and has relinquished his
responsibilities as president and chief operating officer of
Patheon.  Clive Bennett, former President has assumed the role
of chief technical officer, reporting to Wes Wheeler shief
executive officer.  Steve Liberty is appointed senior vice-
president, operations, Canada and USA.  These posts were
effected March 1, 2008.

                       About Patheon Inc.

Headquartered in Mississauga, Ontario, Patheon Inc. (TSX: PTI)
-- http://www.patheon.com/-- provides drug development and   
manufacturing services to the international pharmaceutical
companies located primarily in North America, Europe and Japan.  
The company has operations in Puerto Rico.  It produces both
prescription and over-the-counter drugs for its clients.  
Patheon provides manufacturing services for a range of products
in many dosage forms and packaging, such as compressed tablets,
hard-shell capsules, liquids and powders filled in ampoules,
vials, bottles or pre-filled syringes.  The pharmaceutical
development services provided by Patheon include dosage form
development services, scale-up and technology transfer services,
and manufacturing of pilot batches of drugs.


PATHEON INC: Moody's Holds B2 Rating; Changes Outlook to Neg.
--------------------------------------------------------------
Moody's Investors Service affirmed the B2 Corporate Family
Rating of Patheon Inc. and changed the ratings outlook to
negative from stable.  Moody's also revised the rating on the
US$75 million secured asset based revolver to Ba3 from B1 in
accordance with Moody's Asset-Based Loan Rating Methodology and
reflecting Moody's belief that the instrument would have very
good recovery in a distressed scenario.  The B1 rating on the
US$150 million senior secured term loan B remains unchanged.

The negative outlook reflects risks associated with the
company's continued restructuring program and Moody's
uncertainty regarding the company's ability to improve
profitability and sustain meaningful free cash flow.  If the
company does not begin to demonstrate meaningful improvement in
operating cash flow generation by late 2008, there could be
further pressure on the ratings.

The B2 Corporate Family Rating is constrained by the weak
operating performance that Patheon has demonstrated over the
last several years, partly due to the underperformance of three
Puerto Rican facilities acquired in 2005.  The company continues
to make efforts to restructure the business, diversify its
revenue base and improve profitability.  The ratings are also
constrained by the risks inherent in the business, including
loss of revenues due to generic competition, product approval
delays and client repatriation of products.

The ratings are supported by the company's leading market
position in the pharmaceutical contract manufacturing arena
which has high barriers to entry and longer-term favorable
industry fundamentals.  The ratings are also supported by the
company's relatively modest financial leverage and good near-
term liquidity and interest coverage.

Affirmed:

-- Corporate Family Rating, B2

-- Probability of Default Rating, B2

Instrument Ratings Revised:

-- US$75 million Senior Secured Asset Based Revolver, to Ba3
    (LGD3, 32%) from B1, (LGD3, 37%)

-- US$150 million Senior Secured Term Loan B, to B1 (LGD3, 34%)
    from B1 (LGD3, 37%)

The ratings outlook was changed to negative from stable.

Patheon, headquartered in Mississauga, Canada, is a leading
provider of commercial manufacturing and pharmaceutical
development services of branded and generic prescription drugs
to the international pharmaceutical industry.  Patheon's stock
is publicly traded on the Toronto Stock Exchange.  For the
twelve month period ended Jan. 31, 2008 Patheon reported
revenues from continuing operations of US$651 million.



=============
U R U G U A Y
=============

* URUGUAY: R&I Lifts Foreign Currency IDR to BB-; Outlook Stable
----------------------------------------------------------------
Rating and Investment Information, Inc., has upgraded these
ratings of the oriental republic of Uruguay:

   -- Foreign Currency Issuer Rating: BB- (upgraded from B+)

   -- Rating Outlook: Stable (changed from positive)

   -- Long-Term Issue Rating: Issue Date Redemption Issue Amount
      Samurai Bonds No. 3 (2001) March 14, 2001 to March 14,
      2011 JPY 30,000: BB- (upgraded from B+)

                            Rationale

As economic growth continues, Uruguay's fiscal administration
trend is improving and the government continues to gradually
reduce the level of public debt to gross domestic product (GDP).  
Exports and capital inflows are expanding, which is also
improving the balance of payments structure, and foreign
reserves have increased.  Based on these considerations, R&I has
upgraded the Foreign Currency Issuer Rating to BB- from B+.  The
rating outlook is stable.

With expansion continuing, centered on domestic demand including
domestic consumption, Uruguay's GDP has achieved real growth of
7.4% in 2007.  Details have been finalized for large-scale
investment projects funded by foreign capital, which has
enhanced economic growth potential.  The government has achieved
greater stability in fiscal management, a reflection of higher
tax revenues and reduction of the interest burden on government
debt.  The overall balance in 2007 after deduction of interest
was held to a deficit of 0.4% of GDP.  The balance of public
debt, although still high, was lowered to 74% of GDP by the end
of September 2007.  Primary commodity exports remain vigorous,
but with imports climbing in tandem with economic growth, both
the trade and current balance have been negative since 2006.  

The balance of capital account surplus including foreign direct
investment by overseas firms, however, is enabling Uruguay to
procure sufficient capital.  In 2007, the overall balance of
payments surplus rose to US$1 billion, and foreign reserves
stood at US$5 billion as of the end of March 2008.  External
debt in 2007 had declined to about 60% of GDP.  Through measures
such as increasing the quantity of Uruguayan peso-denominated
securities, expanding issuance of long-term bonds in the
international capital market and extending debt maturities,
Uruguay's government continues to improve its debt structure.  
In light of these changes, R&I judges concerns from an external
economy perspective have been largely eliminated.



==========================
V I R G I N  I S L A N D S
==========================

PETROLEOS DE VENEZUELA: Output Totals 1.1 Bln. Barrels in 2007
--------------------------------------------------------------
El Universal reports that Venezuelan oil production in 2007
totaled 1.1 billion barrels or 3.13 million barrels per day,
exactly the amount reported in Petroleos de Venezuela SA's
audited financial statements.  

As reported in the Troubled Company Reporter-Latin America on
April 23, 2008, the Venezuelan government will discuss in May
the discrepancy between Petroleos de Venezuela's oil output
figures and estimates from the Organization of Petroleum
Exporting Countries.  The Venezuelan government said that its
daily output is about 3.3 million barrels, but outside estimates
have placed Venezuela's actual production below official levels.  
Venezuela was producing about 2.33 million barrels per day
"based on secondary sources," and the International Energy
Agency placed the nation's daily oil production at 2.44 million
barrels, OPEC said.

According to El Universal, the Energy and Petroleum Ministry
disclosed in the edition of the Official Gazette on
April 18, 2008, the addition of 748.46 million barrels of oil to
Venezuelan proven reserves in the fourth quarter 2007, bringing
the total amount of reserves to 99.37 billion barrels as of
Dec. 31, 2007.

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.


PETROLEOS DE VENEZUELA: Takes Over Diques y Astilleros
------------------------------------------------------
Petroleos de Venezuela SA has assumed control Diques y
Astilleros Nacionales CA as part of a plan for Venezuela to
build its own oil tankers and offshore rigs, Steven Bodzin of
Bloomberg News reports.

The shipbuilder was transferred to PDVSA through a resolution
published in the Official Gazette, the formal record of
government actions.  Diques y Astilleros was previously owned by
Venezuela's defense ministry, the report notes.

According to the report, PDVSA has plans to expand its fleet as
it increases supply to Asia.  Two ships were built in Argentina
and PDVSA would build its own ships.

Bolivarian News Agency disclosed that Diques y Astilleros
Nacionales would build a naval vessel.  Iran would assist in
building oil vessels.

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.


PETROLEOS DE VENEZUELA: Selling Fuel Oil to Petrobras
-----------------------------------------------------
Petroleos de Venezuela SA has sold a prompt-loading 270,000-
tonne cargo of fuel oil to Petroleo Brasileiro via private deals
following the cancellation of a tender earlier due to poor price
offers, the Economic Times reports, citing certain traders.

The traders said in a statement that both companies are all
connected in more ways than one.  The companies were partnered
in a US$4.5 million joint-venture refinery project.  Under the
project, the construction was set in northeastern Brazil with
100,000 barrels per day, the report states.

According to the traders, the cargo, based on current market
prices, was valued at a discount of about US$14 to Singapore
spot quotes, on freight-on-board (FOB) basis.  The cargo would
likely be shipped to Asia, the report adds.

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.


PETROLEOS DE VENEZUELA: S&P Holds Long-Term Credit Rating at BB-
----------------------------------------------------------------
Standard & Poor's Ratings Services has affirmed its 'BB-' long-
term corporate credit rating on Petroleos de Venezuela S.A.  The
outlook is stable.
     
The rating on Petroleos de Venezuela and its sole shareholder,
the Bolivarian Republic of Venezuela (BB-/Stable/B), are tightly
linked, reflecting S&P's opinion that the state-owned oil
company is a public policy-based institution that plays a
central role in meeting the sovereign's political and economic
objectives.  The ties of ownership and economic interests
between the oil firm and Venezuela are evident in the
significant contribution of the oil industry to government
revenues (50%) and the country's exports (90%).  The sharp
increases in direct social spending by Petroleos de Venezuela
and recent investments in nonoil-related assets provide further
support to the rating agency's opinion.
     
The ratings assigned to Petroleos de Venezuela also consider the
inconsistencies observed in reported production figures versus
those of other sources and the absence of an external audit of
its reserve base.  "In our opinion, the weighting toward heavy
and extra-heavy crude in the issuer's reserve base presents
technical and financial challenges that create uncertainty
around its stated production targets.  Furthermore, S&P is
concerned about the issuer's ability to attract foreign
investment in light of the government's decision to restructure
PDVSA's operating service agreements, grant PDVSA a majority
share in the heavy oil production, and upgrade projects in the
Orinoco Zuata region," said S&P's credit analyst Jose Coballasi.  
The ratings factor in the rating agency's expectations that the
Venezuelan oil firm's capital expenditures during the next
couple of years will exceed its operating cash flow generation
and require a significant increase in its debt leverage.  As a
result, S&P believes that Petroleos de Venezuela's key financial
measures will weaken and that its exposure to commodity price
volatility will weigh more heavily on its financial performance.
     
The ratings are supported by the Venezuelan oil company's
position as one of the world's leading integrated national oil
companies.  Petroleos de Venezuela's standing in the industry
reflects its mandate to develop Venezuela's considerable proven
reserve base, low finding and development costs, and its
ownership of CITGO Petroleum Corp. (CITGO; BB/Stable/--), one of
the leading refiners in the United States.
     
The company's business strategy is focused on developing
Venezuela's hydrocarbon resources.  Petroleos de
Venezuela's business plan requires approximately US$78 billion
in capital expenditures during the next four years to achieve a
sustainable crude oil production of 5.8 million barrels per day
by 2012 and to increase its refining capacity by 1,000,000
barrels of oil equivalent per day, in 2007, Venezuela's crude
oil production was 3.15 million barrels per day.  The oil firm
has also evolved toward an institution that plays a direct role
in social programs and has acted as an acquisition vehicle for
some industries -- particularly electricity -- that are deemed
strategic for the government, as demonstrated by an agreement
with the AES Corp. to purchase a controlling stake in C.A. La
Electricidad de Caracas (BB-/Stable/--), which operates the
electricity distribution system in Caracas, for US$739.26
million.
     
The stable outlook incorporates S&P's expectations that
Petroleos de Venezuela's financial performance will weaken
during the next couple of years as a result of higher debt
leverage, and that production figures will remain around 2007
levels.  Beyond a negative rating action on Venezuela's
sovereign rating, financial and operating performance below
S&P's expectations or continued increases in debt levels could
lead to a negative rating action on the Venezuelan oil company.  
A positive trend in production figures and additional comfort
regarding production and reserve figures, coupled with an
improvement in the sovereign credit rating on Venezuela, could
lead to a positive rating change.

                 About Petroleos de Venezuela

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.



===========
X X X X X X
===========

* Caribbean Region Faces Big Challenges on US Slowdown, S&P Says
----------------------------------------------------------------
As if yearly hurricanes, rising oil bills, and high indebtedness
aren't enough, the Caribbean region is facing another big
challenge -- the economic slowdown of its main economic partner,
the United States.  And, if that doesn't suffice, one should add
the slowdown in Western Europe and ongoing turbulence in the
international capital markets.  Stir to make the mix uniquely
difficult for the inherently small, open, and vulnerable
Caribbean nations.

This article examines the preparedness of the rated Caribbean
sovereigns -- Standard & Poor's Ratings Services rates eight out
of 15 Caribbean Community members and the Dominican Republic --
against increasing risk from the current turbulent external
environment (i.e., the risk of a slowdown in tourism,
remittances, and foreign direct investment, and to cross-border
financing risk).  The commentary hopes to avoid the common and
often flawed generalizations about the economic impact of the
U.S. on the region, and looks at the particulars of each
sovereign and its strengths and weaknesses in facing looming
external risk.  Interestingly, despite many similarities, the
rated Caribbean sovereigns possess important country-specific
characteristics that position them differently when addressing
the rising risk from the deteriorating global environment.  
Therefore, the objective is to analyze the typical risk of
exposure to the slowing U.S. economy, but within the context of
a sovereign's unique economic and financial situation.  This
way, S&P can make useful analytical comparison and identify
important differences or similarities in the vulnerabilities of
these sovereigns to the U.S. slowdown and, consequently, opine
on their creditworthiness.

         Real Economic Growth Forecasts For The Region

In its April 2008 World Economic Outlook, the International
Monetary Fund (IMF) projects receding economic activity in the
Caribbean region as a result of the U.S. slowdown.  According to
IMF, real GDP in the region will decline to 4.4% in 2008,
weighted by power purchasing parity (PPP), a GDP average among
15 Caribbean countries, from 5.6% in 2007, and further to 3.8%
in 2009.

This forecast is based upon projection of a slowdown in U.S.
real GDP growth to 0.5% in 2008 and 0.6% in 2009, down from 2.2%
in 2007.  Interestingly, according to the IMF projections, only
four of the 15 Caribbean nations (Barbados, the Dominican
Republic, Guyana, and Antigua and Barbuda) are expected to
record lower real economic growth in 2008 than in 2007.  More
importantly, the country that exhibits the greatest slowdown
from the Dominican Republic, has the greatest weight by PPP GDP
in the pool, hence dramatically influencing average regional
zerformances.  At the same time, IMF projects a slowdown in only
one of eight English-speaking Caribbean sovereigns rated by S&P
(Barbados), whereas the rating agency's more conservatively
projects lower economic activity in four out of eight Caribbean
sovereigns in 2008 (The Bahamas, Barbados, Suriname, and
Trinidad and Tobago).  S&P expects average (nonweighted) real
GDP for the rated Caribbean sovereigns to increase to 3.6% in
2008 from 2.8% in 2007, driven by the pickup in this economic
activity in the other four countries. Excluding significant
growth fluctuations in Montserrat, S&P expects regional real
output to stand at a still-high 3.4% in 2008, down from 3.6%
in 2007.

This detailed analysis draws an important conclusion.  S&P
expects the regional Caribbean-wide economic slowdown to be led
by a significant decline in GDP growth in the Dominican Republic
-- estimated to decline to 4.5% in 2008 from 8.5% in 2007,
according to S&P's projections -- while the growth in the
smaller economies should remain broadly resilient to the risk of
economic and financial turbulence.  To understand what is
cushioning growth in the smaller Caribbean nations, S&P shall
look at individual developments in each country.

An examination of the growth dynamics in rated Caribbean
sovereigns reveals that the positive growth projections for
Belize, Grenada, Jamaica, and Montserrat for 2008 reflect
internal developments, such as the recovery from poor external
conditions in a previous year (e.g., Hurricane Dean in Belize
and Jamaica in 2007, and the collapse of the volcanic dome in
Montserrat in early 2007) or the intensification of project
implementation, Grenada's ongoing economic recovery and
Montserrat's strengthening of its infrastructural capacity. On
the other hand, the instances where the growth outlook is
conservatively lowered for 2008 (e.g., in The Bahamas, Barbados,
Suriname, and Trinidad and Tobago), S&P signals the increasing
likelihood of external contagion through the channels discussed
below (e.g., a tourism slowdown in The Bahamas and Barbados;
more conservative estimates of growth in commodity sectors in
Suriname and Trinidad and Tobago).

               The Risk Of A Slowdown In Tourism

It is well known that the Caribbean countries are dependent upon
tourism.  However, there are important differences among the
rated Caribbean countries in terms of both their total exposure
to this sector and in the particular characteristics of their
tourism product.  

Not surprisingly, the highest exposures are found in The Bahamas
and Barbados, followed by Jamaica and Grenada.  Given this
openness, what would reduced travel by U.S. consumers in the
next two years mean for the region? To answer the question,
let's look at table 4, which provides an insightful illustration
of the different composition of the tourism bases among the
Caribbean destinations.

The tourism sector in The Bahamas not only contributes the
largest share of the country's economy compared with that in its
Caribbean peers, but is also the most exposed to the U.S.
market, with U.S. visitors constituting 86% of the total base.  
Barbados, on the other hand, while exhibiting high exposure to
tourism (41% of GDP), possesses a more balanced tourism base:
43% from Europe (including 38% from the United Kingdom),
followed by 23% from the U.S. and 21% from the Caribbean region.  
This more diversified tourism base should provide Barbados with
more protection against drops in U.S. visitors than The Bahamas.
While all eight countries worked to expand and diversify their
tourism bases in the past few years through aggressive marketing
in Canada, Europe, and the Caribbean, progress in reducing their
U.S. exposure has been minimal.  Overall, the destinations that
enjoy a more balance tourism base (e.g., Barbados, Grenada, the
Dominican Republic, and Trinidad and Tobago among countries with
moderate to high exposure to the tourism sector) will be better
positioned to deal with the impact from the U.S. slowdown.

            The Risk Of A Slowdown In Remittances

The importance of remittances for many Caribbean countries
cannot be overstated.  Not only are they an important source of
income for many families, remittances help to alleviate poverty,
increase education and health levels, and play a major external
financing role in the balance-of-payments accounts of these
countries.  As many Caribbean countries post large current
account deficits, remittances are crucial as a stabilizing and,
most importantly, countercyclical financing tool.  In fact, in
some Caribbean countries, remittances exceed the levels of
foreign direct investments.

The largest recipients of remittances in rated Caribbean
countries, in terms of percent of GDP, are Grenada, the
Dominican Republic, Jamaica, Belize, and Suriname.  Remittances
in Haiti (not rated) amount to 35% of GDP, and in Guyana (not
rated) 43% of GDP.  Grenada's share of remittances in GDP is the
highest of the five countries, while Jamaica's remittances
contribute the largest share to current account receipts.

Remittances play an important countercyclical role in supporting
growth amid difficult times, rising steadily to 13% on average
of GDP in 2002 for the Caribbean region from 3.8% of GDP in
1990.  In fact, following the 2001 terrorist attack on the U.S.
and its consequent negative economic impact on the Caribbean,
remittances increased by 3% of GDP in one year.  Remittances
tripled in Grenada from 2003 to 2004, when devastating Hurricane
Ivan hit the island, and stood at twice the prehurricane level
in 2005.  S&P expects remittances to remain an important funding
tool for these countries and to continue growing, albeit at a
more moderate pace.  The emigration of Caribbean workers to the
U.S., Canada, and Europe (U.K., in particular) ensures a more
diversified stream of remittances, hence lowering the
risk of sudden drops.

   The Risk Of A Slowdown In Foreign Direct Investment (FDI)

Foreign direct investments, like remittances, represents an
indispensable external financial tool to open economies running
large external current account deficits, like those in the
Caribbean.  In addition to providing a support to the balance of
payments, FDI offers a strong boost to the real economy of the
Caribbean countries.

Given the small size of the local banking sector in many of
these countries compared with the size of implemented projects
(e.g., in the tourism industry), FDI provides a crucial impetus
for real economic activity.  In fact, large ongoing and ready-
to-start FDI projects that are driving up the tourism-related
construction partly explain the sustainability of GDP growth in
the region, as forecasted for 2008 by S&P.  Having said that,
indications of an FDI slowdown are emerging, particularly
involving projects financed by Wall Street-related investors (as
was the case in The Bahamas).  Nevertheless, while megaprojects
are unlikely to proceed in such an uncertain financial
environment, there is still a strong demand for smaller
projects.

                   Cross-Border Market Risk

The large size of government debt and external vulnerability are
the two most pronounced credit weaknesses of the Caribbean
countries.  Progress in reducing these vulnerabilities, as seen
in fiscal balance and debt burden positions, has been uneven.  
The debt-reduction effort has been more pronounced in the
investment-grade category, while improvement in the riskier,
speculative-grade category has been minimal, if any.  As a
result, only two sovereigns (Suriname and Trinidad and Tobago)
out of eight currently enjoy higher credit ratings than those
initially assigned.

Progress in bringing down external liquidity pressure has also
been slower.  Only three sovereigns recorded lower financing
needs ratios in 2007 compared with the average between 2001 and
2006; the ratio remains above 100% for all sovereigns except
Trinidad and Tobago and Suriname.

Despite high external financial needs, government debt
amortization profiles of all Caribbean sovereigns appear
sustainable when judged in relation to corresponding rating
levels, and reflect improvement in debt management and the
recent debt restructurings in Belize and Grenada.  The Bahamas,
which successfully raised US$100 million in March 2008, and
Barbados benefit from minimal amortizations due in 2008, and
have been covering their borrowing requirements from
predominantly domestic sources.  Trinidad and Tobago has no
external commercial debt maturing until October 2009, and boasts
one of the most developed domestic markets in the region.  As
such, the government has been financing most of its needs in the
local market . Suriname and Montserrat have no external
commercial debt outstanding.  Jamaica is the only rated
Caribbean country with a large borrowing requirement and a
reliance on cross-border financing.

Jamaica's borrowing requirement for fiscal year 2008, started
April 1, 2008, is estimated at roughly 97 billion Jamaican
dollar (or US$1.35 billion), of which external amortization is
projected at US$666 million.  Of this amount, US$100 million is
due to bilateral creditors, US$161 million to multilateral
creditors, and the rest to commercial creditors, including the
repayment of the international bond (US$360 million) due in
February 2009.  Foreign exchange reserves stood at close to
US$2.1 billion in March 2008.  Amortization needs are
significant, especially in the context of uncertain access to
international capital markets, in particular for speculative-
grade sovereigns.  Nevertheless, Jamaica's external
vulnerability is alleviated by a number of qualitative factors.  
First, Jamaica's local capital market is one of the most
developed in the region, and could be used to refinance part of
the external debt due if such a need arises.  Second, Jamaica's
financial institutions hold large share of the country's
external debt.  Given the banks' solid liquidity position, the
government may turn to them to provide some of the new
financing.  Finally, the new Jamaican government expressed its
commitment to lower both the debt and its interest burden
(consuming 42% of revenue and equaling 13% of GDP) through
better collaboration with the multilaterals.  In fact, loan
agreements with multilateral creditors totaling US$117 million
have been signed since September 2007, while another US$219
million in loans is being negotiated for the 2008-2009 fiscal
year.

                Conclusion: A Ratings Perspective

Overall, the economic situation looks reasonably safe for the
Caribbean region.  Future economic and financial direction in
these countries will depend upon their ability to maintain a
high level of investment.  The sustainability of domestic and
foreign investments is especially important because exports, the
other main driving force for GDP growth, are becoming more
vulnerable to the negative external environment.  Also, while
policymakers have less control over the performance of exports,
the investment climate is directly influenced by government
policies.  Hence, projections of sustained growth in the region
correlate highly with the general expectation of disciplined
fiscal and monetary policies in the Caribbean nations.  The
balance between a riskier external environment and a timely and
adequate policy response to increasing vulnerabilities are
behind seven stable rating outlooks in the region (Trinidad and
Tobago's foreign currency rating has a positive outlook).  
Overall, S&P expects the commitment to fiscal consolidation to
prevail, increasing policymaking transparency to boost investor
support, and a timely monetary response to help maintain
stability in the exchange market -- all of which should afford
the small and open Caribbean economies adequate protection
against the rising winds from the North.


* Southwest Healthcare Transactions Conference Set on May 30
------------------------------------------------------------
The Beard Group, Renaissance American Management, and the Health
Industry Council of the Dallas-Fort Worth Region presents the
First Annual Southwest Healthcare Transactions Conference to be
held on May 30, 2008 at the Four Seasons Resort and Club, Dallas
at Las Colinas.

Healthcare professionals and their advisors face a daunting task
of strategic planning in a financial market undergoing
turbulence unseen in decades.  The first-ever conference,
focusing on successful strategies for mergers, acquisitions,
divestitures, and  restructurings, is designed to illuminate the
issues and bring some greater clarity of understanding.   

The organizers have put together a blue-ribbon faculty who are
doing the deals that are getting done.

Conference participants will be looking both at trends in the
industry, financing strategies, and case studies of innovative
deals. This is not a fine-points-of-the-law conference, but one
that will leave one better prepared to plan and execute
one's next transaction. To download the agenda or register for
the conference, visit: http://www.renaissanceamerican.com.

The conference will include:

   * Valuation Impact of Regulatory Issues

   * Pre-Closing Due Diligence and Post-Closing Integration for
     Profit Enhancement

   * Healthcare M&A Market: Where to Next?

   * Exit Strategies using Special Purpose Acquisition
     Corporations

   * Dealmaker Trends between Not-For-Profits and For-Profits

   * Investors’ Roundtable: Perspectives of the Private Equity
     Firms

   * Corporate Finance Perspectives: Current Equity and Debt
     Trends

   * Plus Case Study: Legacy Medical Village, a Physician-Driven
     Model

General sponsors include the Alvarez & Marsal, Bank of Texas'
Healthcare Banking Group, GE Healthcare Financial Services, Hill
Schwarts Spilker Keller LLC, K&L Gates, Patton Boggs LLP, and
PricewaterhouseCoopers' Transaction Services.

Cadwalader, Cain Brothers, Deloitte, Drinker Biddle,
KaufmanHall, Latham & Watkins LLP, Principle Valuation LLC,
Proskauer Rose LLP and Wellspring Partners serve as
sustaining sponsors.


                            ***********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA.  Tara Eliza E. Tecarro, Sheryl Joy P. Olano,
Rizande de los Santos, and Pamella Ritah K. Jala, Editors.

Copyright 2008.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
prior written permission of the publishers.

Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.

The TCR Latin America subscription rate is US$625 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are US$25 each.  For
subscription information, contact Christopher Beard at
240/629-3300.


           * * * End of Transmission * * *