TCRLA_Public/080624.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

            Tuesday, June 24, 2008, Vol. 9, No. 124

                            Headlines


A R G E N T I N A

CALIPAN SRL: Trustee to File Individual Reports on Oct. 6
CASTELLANO E HIJOS: Claims Verification Deadline Is Sept. 2
CLINICA BRANDZEN: Proofs of Claim Verification Is Until Aug. 29
CLINICA MARIANO: Proofs of Claim Verification Is Until Sept. 29
CONOIL SRL: Proofs of Claim Verification Deadline Is July 25

CORPORACION GANADERA: Claims Verification Deadline Is Sept. 15
DROGUERIA GENERAL: Trustee to File Individual Reports on Oct. 1
ER EMERGENCIAS: Proofs of Claim Verification Deadline Is Sept. 3
FORD MOTOR: Makes Further Reductions on Truck Production
FORD MOTOR: Moody's Holds B3 Rating But Says Outlook is Negative

FORD MOTOR: S&P Places Ratings on Negative Watch
GAS NATURAL: Moody's Puts B2 Rating on ARS150MM Proposed Notes
HUNTSMAN CORP: S&P Retains 'BB-' Rating Under Negative Watch
LANSER SA: Proofs of Claim Verification Is Until Sept. 12
PANABAIRES SA: Trustee to File Individual Reports on Oct. 16

RESIDENTIAL CAPITAL: Board OKs Waiver of Operating Agreement
SOL DE MEDIODIA: Proofs of Claim Verification Is Until Sept. 1


B E R M U D A

CENTRAL EUROPEAN: Files Second Registration Statement With SEC
CONCORDIA INSTITUTIONAL: Final Shareholders Meeting on July 21
YRC WORLDWIDE: Updates Second Quarter 2008 Earnings Guidance
SECURITY CAPITAL: Moody's Junks Provisional Ratings on Debts
SKYLLA LIMITED: Proofs of Claim Filing Deadline Is July 23

SKYLLA LIMITED: Will Hold Final Shareholders Meeting on Aug. 6


B R A Z I L

BANCO NACIONAL: Sells 14.6MM CSN Shares, Reduces Stake to 4.6%
COMPANHIA SIDERURGICA: BNDES Lowers Stake in Firm to 4.6%
COMPANHIA SIDERURGICA: Jiangsu Shagang Wants Stake in Firm
CYRELA BRAZIL: To Purchase Agra Empreendimentos for US$958 Mil.
EMPRESA ENERGETICA: Moody's Reviews Rating for Likely Downgrade

ENERGIAS DO BRASIL: Inks Share Exchange Pact With Grupo Rede
FERRO CORP: Ceases Brazil Plants to Reduce Operating Costs
GENERAL MOTORS: S&P Places Ratings on Negative Watch
HEXION SPECIALTY: S&P Keeps 'B' Rating Under Negative Watch
NET SERVICOS: To Ink US$200MM Loan With Banco Inbursa for Big TV

NOVELIS INC: Incurs US$69 Million Net Loss in Fiscal Year 2008


C A Y M A N  I S L A N D S

AEI: Moody's Rates Proposed US$250MM Sr. Unsecured Notes at B2
BEAR STEARNS: Two Former Managers Indicted on Fraud Charges
BGI SHORT HORIZON: Final Shareholders Meeting Is on June 27
BILP HOLDINGS: Sets Final Shareholders Meeting for June 27
CORSAIR (CAYMAN ISLANDS): Final Shareholders Meeting on June 27

FUTURE PLAZA: Will Hold Final Shareholders Meeting on June 27
HERO I: Sets Final Shareholders Meeting for June 27
INCOGRAIN INT'L: Deadline for Proofs of Claim Filing Is Today
INVISTA BRANDYWINE: Deadline for Claims Filing Is June 27
INVISTA BRANDYWINE: Final Shareholders Meeting Is on June 30

KENT FUNDING: Will Hold Final Shareholders Meeting on June 27
PINTO TOTTA: Sets Proofs of Claim Filing Deadline for June 27
PINTO TOTTA: Will Hold Final Shareholders Meeting on June 30
POTENTIAL ENERGY: To Hold Final Shareholders Meeting on June 27
PROTON THREE: Sets Final Shareholders Meeting for June 27

RITCHIE CONVERTIBLE: Proofs of Claim Filing Deadline Is June 27
RITCHIE REAL ESTATE: Proofs of Claim Filing Deadline Is June 27
SANTOSHI CLO: Will Hold Final Shareholders Meeting on June 27
SIR LAN INVESTMENTS: Proofs of Claim Filing Is Until June 27


C H I L E

CORPORACION NACIONAL: Needs to be Upgraded, Mining Minister Says


C O L O M B I A

BRIGHTPOINT INC: Signs Agreement With Synchronoss


C O S T A  R I C A

SIRVA INC: OOIDA Demands Full Distribution of US$5,000,000 Claim


E L  S A L V A D O R

AES CORP: Moody's Revises LGD 4 Point Estimate to 56% From 57%


J A M A I C A

AIR JAMAICA: Workers Disgruntled With Wage Offer From Ministry
CABLE & WIRELESS: Will Launch Prepaid BlackBerry Service


M E X I C O

CHRYSLER LLC: Exceeding Financial Targets Despite Challenges
CHRYSLER LLC: S&P Places Ratings on Negative Watch
HIPOTECARIO SU: S&P Affirms Strong Ranking as Loan Servicer
INTERGEN NV: To Purchase Libramiento Facility for US$88.1 Mil.
MEXORO MINERALS: Publishes Press Release Clarification Statement

PILGRIM'S PRIDE: S&P Puts 'BB' Corp. Credit Under Negative Watch
STEVE & BARRY'S: To Go Bankrupt if US$30MM Funding Search Fails


P A N A M A

IAP WORLDWIDE: S&P Lifts Ratings and Says Outlook is Developing


P E R U

FREEPORT-MCMORAN: Reaches Deal With Striking Peru Miners


P U E R T O  R I C O

NUTRITIONAL SOURCING: Wants Exclusive Plan Filing Moved
TOWER BONDING: A.M. Best Holds BB Credit Rating, Neg. Outlook


V E N E Z U E L A

PETROLEOS DE VENEZUELA: To Invest US$15.7 Billion on 88 Projects
PETROLEOS DE VENEZUELA: Chief to Attend Saudi Arabia Oil Meeting
PETROLEOS DE VENEZUELA: South Korea May Help Develop Orinoco


* Large Companies With Insolvent Balance Sheet


                         - - - - -


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

CALIPAN SRL: Trustee to File Individual Reports on Oct. 6
---------------------------------------------------------
Ernesto Garcia, the court-appointed trustee for Calipan S.R.L.'s
bankruptcy proceeding, will present the validated claims as
individual reports in the National Commercial Court of First
Instance in Buenos Aires on Oct. 6, 2008.

Mr. Garcia will be verifying creditors' proofs of claim until
Aug. 22, 2008.  He will submit to court a general report
containing an audit of Calipan's accounting and banking records
on Nov. 17, 2008.

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

The debtor can be reached at:

           Calipan SRL
           Jose Pedro Varela 5581
           Buenos Aires, Argentina

The trustee can be reached at:

           Ernesto Garcia
           Sarmiento 1587
           Buenos Aires, Argentina


CASTELLANO E HIJOS: Claims Verification Deadline Is Sept. 2
-----------------------------------------------------------
Jose Obes, the court-appointed trustee for Castellano e Hijos
SA's bankruptcy proceeding, will be verifying creditors' proofs
of claim until Sept. 2, 2008.

Mr. Obes will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 1 in Buenos Aires, with the assistance of Clerk
No. 2, 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 Castellano e Hijos' 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 Castellano e Hijos'
accounting and banking records will be submitted in court.

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

Mr. Obes is also in charge of administering Castellano e Hijos'
assets under court supervision and will take part in their
disposal to the extent established by law.

The debtor can be reached at:

           Castellano e Hijos SA
           Humberto I 985
           Buenos Aires, Argentina

The trustee can be reached at:

           Jose Obes
           Lavalle 1619
           Buenos Aires, Argentina


CLINICA BRANDZEN: Proofs of Claim Verification Is Until Aug. 29
---------------------------------------------------------------
The court-appointed trustee for Clinica Brandzen S.A.'s
bankruptcy proceeding will be verifying creditors' proofs of
claim until Aug. 29, 2008.

The trustee will present the validated claims in court as
individual reports on Oct. 22, 2008.  The National Commercial
Court of First Instance in Quilmes, 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 Clinica Brandzen 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 Clinica Brandzen's
accounting and banking records will be submitted in court on
Dec. 12, 2008.

The debtor can be reached at:

           Clinica Brandzen S.A.
           Brandzen 128, Quilmes
           Buenos Aires, Argentina
           Phone: 4253-2957/5730 4257-4919/2957
           E-mail: cmiqfact@cscom.com.ar


CLINICA MARIANO: Proofs of Claim Verification Is Until Sept. 29
---------------------------------------------------------------
Auzmendi-Palma, the court-appointed trustee for Clinica Mariano
Moreno S.A.'s bankruptcy proceeding, will be verifying
creditors' proofs of claim until Sept. 29, 2008.

Auzmendi-Palma will present the validated claims in court as
individual reports on Nov. 10, 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 Clinica Mariano 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 Clinica Mariano's
accounting and banking records will be submitted in court on
Nov. 23, 2008.

Auzmendi-Palma is also in charge of administering Clinica
Mariano's assets under court supervision and will take part in
their disposal to the extent established by law.

The trustee can be reached at:

           Auzmendi-Palma
           Jose E. Uriburu 1632
           Buenos Aires, Argentina


CONOIL SRL: Proofs of Claim Verification Deadline Is July 25
------------------------------------------------------------
The court-appointed trustee for Conoil S.R.L.'s bankruptcy
proceeding will be verifying creditors' proofs of claim until
July 25, 2008.

The trustee will present the validated claims in court as
individual reports on Sept. 22, 2008.  The National Commercial
Court of First Instance in Bahia Blanca, Buenos Aires, will
determine if the verified claims are admissible, taking into
account the trustee's opinion, and the objections and challenges
that will be raised by Conoil 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 Acelsud Aceros'
accounting and banking records will be submitted in court.

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


CORPORACION GANADERA: Claims Verification Deadline Is Sept. 15
--------------------------------------------------------------
Beatriz Dominguez, the court-appointed trustee for Corporacion
Ganadera del Mercosur SRL's bankruptcy proceeding, will be
verifying creditors' proofs of claim until Sept. 15, 2008.

Ms. Dominguez will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 24 in Buenos Aires, with the assistance of Clerk
No. 47, 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 Corporacion Ganadera 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 Corporacion
Ganadera's accounting and banking records will be submitted in
court.

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

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

The debtor can be reached at:

           Corporacion Ganadera del Mercosur SRL
           Tucuman 141
           Buenos Aires, Argentina

The trustee can be reached at:

           Beatriz Dominguez
           Rivadavia 2151
           Buenos Aires, Argentina


DROGUERIA GENERAL: Trustee to File Individual Reports on Oct. 1
---------------------------------------------------------------
Marisa Gacio, the court-appointed trustee for Drogueria General
S.A.'s bankruptcy proceeding, will present the validated claims
in as individual reports in the National Commercial Court of
First Instance in Buenos Aires on Oct. 1, 2008.

Ms. Gacio will be verifying creditors' proofs of claim until
Aug. 20, 2008.  She will submit to court a general report
containing an audit of Drogueria General's accounting and
banking records on Nov. 13, 2008.

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

The debtor can be reached at:

                    Drogueria General SA
                    Charlone 868
                    Buenos Aires, Argentina

The trustee can be reached at:

                    Marisa Gacio
                    San Martin 793
                    Buenos Aires, Argentina


ER EMERGENCIAS: Proofs of Claim Verification Deadline Is Sept. 3
----------------------------------------------------------------
The court-appointed trustee for ER Emergencias Medicas S.R.L.'s
bankruptcy proceeding will be verifying creditors' proofs of
claim until Sept. 3, 2008.

The trustee will present the validated claims in court as
individual reports on Oct. 22, 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 ER Emergencias 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 ER Emergencias'
accounting and banking records will be submitted in court on
Dec. 11, 2008.


FORD MOTOR: Makes Further Reductions on Truck Production
--------------------------------------------------------
Ford Motor Company said Friday it is making further reductions
to its North American truck production plan while adding more
small cars, crossovers and fuel-efficient powertrains, as the
company responds to the continued deterioration in the U.S.
business environment and the accelerated shift away from large
trucks and SUVs.

"As gasoline prices average more than US$4 a gallon and
consumers worry about the weak U.S. economy, we see June
industry-wide auto sales slowing further and demand for large
trucks and SUVs at one of the lowest levels in decades," said
Ford President and CEO Alan Mulally.   "Ford has taken decisive
action to respond to this accelerating shift in customer demand
away from large trucks and SUVs to smaller cars and crossovers,
and we will continue to act swiftly moving forward."

Ford now expects U.S. industry volume in 2008 – including medium
and heavy vehicles – to be between 14.7 million and 15.2 million
units, compared with the previous assumption of 15 million to
15.4 million units.  Accordingly, in the third quarter, Ford now
plans to produce 475,000 vehicles, a reduction of 50,000 units
from previously announced plans and a decline of 25 percent
compared with the 2007 third quarter.  In the fourth quarter,
Ford plans to produce 550,000 to 590,000 units, a reduction of
40,000 units from previously announced plans and a decline of 8
to 14 percent compared with the 2007 fourth quarter.

In parallel, Ford is adjusting the public introduction timing of
the new 2009 Ford F-150 by approximately two months due to the
industry-wide slowdown in the U.S. truck market and the need to
sell down dealer inventory of the current model.  The new F-150
now will go on sale in late fall.

"The new 2009 F-150 raises the bar yet again on capability,
quality and durability, and we know core truck customers are
eagerly awaiting its arrival," said Mark Fields, Ford’s
President of The Americas.  "Our plan all along has been to
introduce the new F-150 after our dealers had a chance to sell
down inventory of the existing model, and – with the current
slowdown in the marketplace – we decided it was prudent to
adjust the start of public sale for the new truck by about two
months."

With these actions, Ford said it now is clear that 2008 pre-tax
Automotive results will be worse than 2007, cash outflows to
fund operating losses and restructuring will be greater than
previous guidance and, unless the economy improves, it will be
difficult for Ford to break even companywide on a pre-tax basis
in 2009, excluding special items.  Ford North America still
expects to reduce annual operating costs by about US$5 billion
by the end of 2008 – at constant volume, mix and exchange, and
excluding special items – compared with 2005.

Ford Motor Credit Company now will incur a pre-tax loss this
year – excluding any potential payment related to Ford’s profit
maintenance agreement – primarily due to further weakness in
large truck and SUV auction values.  Ford Credit no longer is
planning a distribution payment to Ford in 2008.

Ford said it will provide more details on changes to its overall
plan when it announces second-quarter financial results in July.  
In the meantime, Ford is taking these production actions:

     -- Production of the 2009 F-150 now will begin in August at
        Kansas City Assembly Plant and in September at Dearborn
        Truck.  One shift will be eliminated at both Kansas City
        (from two to one) and Dearborn (from three to two).  
        Dearborn Truck will be idled most of the third quarter.


     -- Michigan Truck Plant will be idled for nine consecutive
        weeks beginning the week of June 23, in line with demand
        for the company’s full-size SUVs.

     -- One shift of production will be eliminated at Louisville
        Assembly Plant for mid-size SUVs in the third quarter.

     -- The line speed will be reduced at Kentucky Truck Plant
        for large pickups in the third quarter.

     -- The line speed will be reduced at Chicago Assembly in
        the third quarter for full-size sedans.

     -- Production will wind down at Cuautitlan Assembly Plant
        in Mexico by the end of 2008.  The plant, which now
        produces large pickups, will be retooled for production
        of the new Fiesta small car for North America beginning
        in early 2010.

Ford also is taking these actions to increase capacity in the
third quarter:

     -- Oakville Assembly will add a third shift for production
        of the Ford Edge, Lincoln MKX and all-new 2009 Ford Flex
        crossovers.

     -- Kansas City Assembly Plant’s line that produces the Ford
        Escape, Escape Hybrid and Mercury Mariner and Mariner
        Hybrid small utility vehicles will add a third shift.

     -- Wayne Assembly Plant’s body and paint shops will add a
        third shift, and the line-speed will be increased for
        final assembly production of the popular Ford Focus
        small car.

Production at Ford’s stamping, engine and transmission plants is
being adjusted in line with the changes in assembly capacity.

"We view the move to smaller, more fuel-efficient vehicles as
permanent, and we are responding to customer demand," Mulally
said.  "In the near term, we are adjusting production to the
actual demand – increasing small cars and crossovers and
reducing large trucks and SUVs.  For the long term, we are
moving fast to introduce more small cars, crossovers and fuel-
efficient powertrains – including more hybrids – and we will
adjust our manufacturing facilities to match our updated product
lineup."

Ford said it is uniquely positioned to build on its strength
today as a crossover vehicle leader, while leveraging its small
car expertise in Europe and bringing more of those vehicles to
North America.

In addition to hatchback and sedan versions of the European-
engineered Ford Fiesta small car that goes on sale in North
America in early 2010, Ford is announcing today that four- and
five-door versions of the next-generation European Ford Focus
small car will be produced in North America beginning in late
2010.

The new Focus will be common with Europe, South America and Asia
Pacific and represent the next generation of today’s successful
European Focus.  Excellent fuel economy will be achieved through
new highly efficient direct-injection engine technology and a
new advanced six-speed transmission.

The new Focus and Fiesta – as well as other small cars and
crossovers from Europe – will be part of an unprecedented period
of new Ford product introductions that has only just begun in
North America.  The new Ford Flex crossover and Lincoln MKS
sedan went on sale this month, and the new F-150 goes on sale in
late fall.  New versions of the Ford Fusion, Mercury Milan and
Lincoln MKZ mid-size cars debut late this year, as do all-new
hybrid versions of the Fusion and Milan.

By the end of this year, 70 percent of all Ford, Lincoln and
Mercury products by volume in North America will be new or
significantly upgraded compared with the 2006 models.  By the
end of 2010, 100 percent of the product lineup will be new,
including in 2009 the next-generation Mustang, new fuel-saving
EcoBoost engines and new European Transit Connect.

"We remain absolutely committed to accelerating the development
of the new products that customers want and value," Mulally
said.  "We sell some of the best smaller cars and utility
vehicles in the world in our profitable European and South
American operations, and our plan is to introduce these same
vehicles in North America as quickly as possible.  This is an
integral part of our plan to leverage our global assets and
achieve our goal of profitable growth."

                             About Ford

Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures or distributes automobiles   
in 200 markets across six continents.  With about 260,000
employees and about 100 plants worldwide, the company's core and
affiliated automotive brands include Ford, Jaguar, Land Rover,
Lincoln, Mercury, Volvo, Aston Martin, and Mazda.  The company
provides financial services through Ford Motor Credit Company.

The company has operations in Japan in the Asia Pacific region.
In Europe, the company maintains a presence in Sweden, and the
United Kingdom.  The company also distributes its brands in
various Latin American regions, including Argentina and Brazil.


FORD MOTOR: Moody's Holds B3 Rating But Says Outlook is Negative
----------------------------------------------------------------
Moody's Investors Service affirmed the B3 Corporate Family
Rating and Probability of Default Rating of Ford Motor Company,
but changed the rating outlook to negative from stable.  The
company's Speculative Grade Liquidity rating remains SGL-1.  The
rating outlook for Ford Credit has also been changed to negative
from stable, reflecting parent level concerns and deteriorating
asset quality.  The negative outlook for Ford reflects the
increasingly challenging environment faced by its and the other
domestic auto manufacturers as the outlook for US vehicle demand
falls, and as high fuel costs drive US consumers away from light
trucks and SUVs and toward more fuel efficient vehicles.

As a result of these eroding market fundamentals Ford announced
that:

     1) its automotive performance for 2008 will be worse than
        that of 2007 in which it had a pre-tax loss of
        US$1.8 billion excluding Jaguar and Land Rover, and
        special items;

     2) Ford Credit will incur a pre-tax operating loss for
        2008;

     3) the company is unlikely to achieve break even
        performance during 2009; and

     4) the two-year pace of automotive operating cash burn for
        2008 and 2009 will exceed the previously estimated level
        of US$12 to US$14 billion.

The negative outlook for Ford Credit reflects the business and
ownership connections with Ford and the impact of declining used
vehicle values (in particular, trucks and SUVs) on the firm's
asset quality.  These declining used vehicle values are expected
to result in higher credit costs and additional depreciation
expense at Ford Credit, pressuring operating results. Ford
Credit expects to report a pre-tax loss in 2008, excluding any
potential payment related to Ford's profit maintenance
agreement.  Ford Credit is the beneficiary of a profit support
agreement from Ford, who has indicated that it will take no
distributions from Ford Credit during 2008, in contrast to
previous expectations.  This, in combination with Ford Credit's
committed borrowing facilities, cash flow from short-duration
assets, cash balances, and access to the secured debt markets,
should provide the firm adequate resources to meet short-term
demands on cash.

Ford's operational response to the US shift in consumer demand
includes: reducing production of trucks and SUVs while
increasing the production of cars and crossover vehicles;
extending further buyout offers to hourly workers in order to
reduce manned capacity; delaying the launch of the F-150 truck;
and, introducing many of its successful European small cars and
crossovers to the US market. Despite the prudence of these
initiatives, the massive shift in the production and product
profile being contemplated by Ford is a complex, long-term
undertaking. Consequently, the future pace and degree of success
of these initiatives remain highly uncertain.  An additional
area of uncertainty is the company's ability to build a
reasonable level of profitability for mid-size and small cars in
the US -- classes of vehicles that have historically generated
losses for Ford, and that have had to be priced at significant
discounts relative to comparably equipped vehicles made by
Japanese manufacturers.

Bruce Clark, senior vice president with Moody's said,
"Maintaining adequate liquidity will be one of the most critical
challenges Ford faces as it attempts to reshape its US product
profile and manufacturing base during the next two years."  
Clark noted that, "Ford is going to burn a considerable amount
of cash until it adequately expands its fleet of fuel efficient
cars and convinces consumers that these vehicles offer
competitive value relative to Japanese product.  The pace of
cash consumption will also remain high until Ford begins to
harvest the health care cost savings of its new UAW contract in
2010."

At March 31, Ford had a sizable US$40.6 billion liquidity
position that consisted of US$28.7 billion in cash and US$11.9
billion in availability under committed credit facilities.  This
liquidity position was further enhanced by approximately US$2.3
billion in proceeds from the sale of Land Rover and Jaguar.

During 2008 and 2009, Ford's key liquidity requirements will
include the following: operating losses and restructuring
expenditures that could exceed US$14 billion; ongoing minimum
levels of cash required to fund intra-month working capital
requirements that can approximate 5%-6% of revenues in the
automotive OEM sector; debt repayments of approximately US$1.5
billion; UAW-related VEBA contributions of US$2.8 billion;
pension contributions; over US$4 billion in payments to Ford
Motor Credit Company that will bring Ford's subvention payment
terms with its finance operation more in line with industry
norms; and the possibility that the pace of cash outflow could
increase depending on delays in implementing the company's
repositioning efforts and further erosion in the demand
characteristics in the US market.

A key factor supporting Ford's B3 corporate family rating and
SGL-1 liquidity rating is the ample size of the company's
liquidity position relative to the cash requirements it will
likely face during the coming twelve months.  However, Ford will
continue to face a sizable cash burn through 2009. Consequently
the current liquidity cushion will continue to narrow, and the
SGL-1 is unlikely to be sustainable absent any substantial
source of new liquidity.  ver the coming quarters, this
narrowing of Ford's liquidity position will likely contribute to
reductions in the Speculative Grade Liquidity rating and may
also contribute to a review for possible downgrade of the B3
long-term rating.  Moreover, any acceleration in the company's
pace of cash consumption would accelerate downward pressure on
both the SGL and long-term ratings.

Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures or distributes automobiles   
in 200 markets across six continents.  With about 260,000
employees and about 100 plants worldwide, the company's core and
affiliated automotive brands include Ford, Jaguar, Land Rover,
Lincoln, Mercury, Volvo, Aston Martin, and Mazda.  The company
provides financial services through Ford Motor Credit Company.

The company has operations in Japan in the Asia Pacific region.
In Europe, the company maintains a presence in Sweden, and the
United Kingdom.  The company also distributes its brands in
various Latin American regions, including Argentina and Brazil.


FORD MOTOR: S&P Places Ratings on Negative Watch
------------------------------------------------
Standard & Poor's Ratings Services on Friday said it is placing
its corporate credit ratings on the three U.S. automakers,
General Motors Corp., Ford Motor Co., and Chrysler LLC, on
CreditWatch with negative implications, citing the need to
evaluate the  financial damage being inflicted by deteriorating
U.S. industry conditions -- largely as a result of high gasoline
prices.

Included in the CreditWatch placement are the finance units Ford
Motor Credit Co. and DaimlerChrysler Financial Services Americas
LLC, as well as GM's 49%-owned finance affiliate GMAC LLC.

"We have renewed concerns about all three automakers' future
cash outflows in light of the prospects for U.S. sales for the
rest of 2008 and into 2009," said Standard & Poor's credit
analyst Robert Schulz.  The erosion of demand for SUVs and
pickups has been particularly troubling.  Although these
segments have been weak for some time, the exodus of demand that
began in April, caused by escalating gas prices and consumer
preferences for smaller vehicles, is gathering speed.  Despite
concerted, and in some cases successful, efforts to bolster
their line-ups of smaller vehicles and reduce costs, all three
Michigan-based automakers still rely on light trucks for a
disproportionate share of profitability and cash flow.

The companies' difficulty in anticipating the pace of market
deterioration was reflected today in Ford's announcement that it
expects to use an even larger amount of cash this year and next
than it announced previously, its second negative guidance
revision in a month.  Ford plans to use more than US$16 billion
of cash between 2007 and 2009 in its automotive operations,
including the cost of employee separation programs, unless the
economy rebounds next year.  The company also said this year's
pretax results will be worse than last year's, announced further
light-truck production cuts and shift reductions, and delayed
this fall's launch of the F-150 pickup by two months to clear
existing inventory.  Also worrisome is the dire state of
the vehicle finance market. Ford said Friday it expects Ford
Motor Credit to report a pretax loss for the year (before any
infusion from Ford) caused by weak used (residual) values,
primarily for light trucks.

Although GM and Chrysler have not publicly detailed their
expectations for cash use, all of the factors behind Ford's
weaker guidance also apply to the other U.S.-based automakers.
In addition to weak sales and adverse product mix shifts, the
list of challenges also includes less receptive capital
markets, higher costs for steel and other raw materials, lower
residual values that hurt profitability at the finance units and
reduce consumers' trade-in power, and increasing cash needs for
restructuring efforts.

S&P believes all three companies currently have ample liquidity
for at least the rest of 2008 as measured by cash balances,
available bank facilities, and in some cases unencumbered
assets.  But S&P also believes deteriorating industry
fundamentals could reduce liquidity to undesirable levels by the
second half of 2009.

As part of S&P's reviews, S&P will assess all three companies'
strategies for addressing the weak sales and shifts in demand
away from light trucks and maintaining liquidity at satisfactory
levels through 2009.

Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures or distributes automobiles   
in 200 markets across six continents.  With about 260,000
employees and about 100 plants worldwide, the company's core and
affiliated automotive brands include Ford, Jaguar, Land Rover,
Lincoln, Mercury, Volvo, Aston Martin, and Mazda.  The company
provides financial services through Ford Motor Credit Company.

The company has operations in Japan in the Asia Pacific region.
In Europe, the company maintains a presence in Sweden, and the
United Kingdom.  The company also distributes its brands in
various Latin American regions, including Argentina and Brazil.


GAS NATURAL: Moody's Puts B2 Rating on ARS150MM Proposed Notes
--------------------------------------------------------------
Moody's Latin America has assigned a B2 global local currency
and a A1.ar national scale rating to Gas Natural Ban S.A.'s
proposed Class 2 ARS Notes up to ARS150 million with a stable
outlook.  The issuance of these notes will be used primarily to
pay the ARS113 million of outstanding Class 1 Notes at maturity
with the balance used to provide liquidity.

The ratings primarily reflect the company's solid credit metrics
and the company's current position in terms of regulatory
support and government relationship.  Gas Natural is the only
gas distribution company whose tariffs have been increased in
2007.  In addition, the company continues to work with the
regulator in completing the ongoing integral tariff review
process.

As a result of the tariff increase and past prudent financial
policies the company's 2007 credit metrics improved over the
previous year and continue to be strong for the B2 rating
category.  Debt to EBITDA fell to 2.2 from 3.7 as the operating
margin increased to 15.4% from 5.7%.  As a result, return on
equity for 2007 reached a positive 9.8% compared to the 11.5%
negative return registered in 2006.  Despite these improvements,
the ratings continue to be constrained by the evolving nature of
regulations, the high degree of continued government
interference within the gas distribution sector and the
company's relatively tight liquidity profile.

Although Gas Natural is working with the regulator in the
integral review process, the final outcome of that process in
Moody's opinion will largely depend on a political decision.  
Moody's remains concerned with the large percentage of short
term debt in the company's capital structure.  As is common
practice in Argentina, the company does not have committed bank
facilities in place should the company encounter unexpected
operating cash flow shortfalls or capital market disruptions.

The stable outlook reflects Moody's expectation that the company
will maintain adequate levels of cash in relation to debt and
balanced operations until a new tariff regime is implemented and
that it will be able to maintain adequate access to external
financing to meet its short term debt.

The ratings could be upgraded once a new tariff regime is
implemented that allows for cost recoveries and reasonable rates
of return.  Execution of a more balanced debt profile that
avoids the current debt maturity concentration in the short term
could also create upwards rating pressure.  Should the company
not be able to improve its overall liquidity profile with
continued profitable operations and/or continued access to the
local capital markets becomes questionable, the ratings or the
outlook could come under downward pressure.

Based in Buenos Aires, Argentina, Gas Natural Ban S.A. --
http://www.gasnaturalban.com/-- was created in 1992 as a result  
of the privatization of the estate-owned gas company, Gas del
Estado.  It is one of the 8 gas distribution companies in the
country with operations in the north area of Buenos Aires
Province.  The company has almost 1.3 million clients within the
area with total revenues of ARS646 million in 2007.  Gas Natural
is controlled by Invergas (51%) and Gas Natural SDG Argentina
(19%) both of which are controlled by Gas Natural SDG Spain.  
The remaining 30% floats in the BCBA.


HUNTSMAN CORP: S&P Retains 'BB-' Rating Under Negative Watch
------------------------------------------------------------
Standard & Poor's Ratings Services said that its ratings on Salt
Lake City, Utah-based Huntsman Corp. (BB-/Watch Neg/--) remain
on CreditWatch with negative implications, where they were
placed on July 5, 2007.  The initial placement followed the
announcement of Hexion Specialty Chemicals Inc.'s proposed debt-
financed acquisition of Huntsman Corp. in a transaction valued
at more than US$10 billion, including assumed debt.
     
The CreditWatch update follows Hexion's filing of a Form 8-K
with the SEC and press release indicating that the transaction,
which was expected to close this year, is no longer viable based
on the proposed highly leveraged capital structure of the
combined company.  Hexion cites a number of factors supporting
this conclusion, including Huntsman's increased net debt and
lower than expected earnings, and Hexion's belief that the
lenders will not provide the committed financing required to
complete the transaction as proposed.  Huntsman issued a
statement indicating that it will seek to enforce its rights
under the merger agreement and to consummate the deal on the
agreed terms.
     
"The ongoing CreditWatch indicates that the ratings of both
companies remain at risk for downgrades, with or without
completing the pending transaction," said Standard & Poor's
credit analyst Kyle Loughlin.  "The CreditWatch will remain in
place until there is further clarity on the prospects for
completion of a transaction and after we have conducted a full
reassessment of the standalone credit quality of each company."
     
Both companies' financial results have weakened since the time
when the transaction was announced, which is consistent with
general trends in the chemicals sector that has been plagued by
weaker economic conditions and escalating raw material costs.
     
As indicated in S&P's initial comments on the transaction, the
proposed acquisition was expected to be very large relative to
Hexion's existing operations, and would have resulted in a
highly aggressive capital structure for a cyclical company, more
than offsetting the expected benefits to the business profile.  
The transaction would result in a global and highly diversified
chemicals producer with over US$16 billion in annual revenue,
compared with Hexion's current revenue of about US$6 billion.  
If completed, the transaction would clearly improve Hexion's
business profile given the stronger product mix, better
diversification, and less dependency on Hexion's core resins
product.
     
However, S&P also noted that Hexion was already highly leveraged
at the time of the announcement, with total debt to EBITDA above
5x, and that a debt-financed transaction would further stretch
the financial profile, even beyond a level appropriate for
Hexion's existing 'B' corporate credit rating.  Hexion's
financial profile now reflects debt to EBITDA of over 7x, after
adjustments including tax-adjusted unfunded employee benefit
obligations, and
the capitalized present value of operating leases.  Similarly,
Huntsman's financial profile has deteriorated with negative
operating trends in its textile effects and pigments segments.

A confluence of weak volumes and substantially higher raw
material costs has compressed the company's margins in certain
products.  Accordingly, Huntsman's financial profile is somewhat
weak for its 'BB-' corporate credit rating and remains at risk
for a modest downgrade, with last-12-months debt to EBITDA of
above 5.0x, including adjustments to reported debt.
     
S&P will resolve the CreditWatch listings after meeting with the
management teams to evaluate future strategic plans, business
prospects, and financial policies, and the potential that a
transaction could still be completed.

Huntsman Corp. -- http://www.huntsman.com/-- is a global
manufacturer and marketer of differentiated chemicals.  Its
operating companies manufacture products for a variety of global
industries, including chemicals, plastics, automotive, aviation,
textiles, footwear, paints and coatings, construction,
technology, agriculture, health care, detergent, personal care,
furniture, appliances and packaging.  Originally  known for
pioneering innovations in packaging and, later, for rapid and
integrated growth in petrochemicals, the company has 13,000
employees and operates from multiple locations worldwide.   Its
Latin American operations are in Argentina, Brazil, Chile,
Colombia, Guatemala, Panama and Mexico.


LANSER SA: Proofs of Claim Verification Is Until Sept. 12
---------------------------------------------------------
Jorge Gerchkovich, the court-appointed trustee for Lanser SA's
bankruptcy proceeding, will be verifying creditors' proofs of
claim until Sept. 12, 2008.

Mr. Gerchkovich will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 24 in Buenos Aires, with the assistance of Clerk
No. 47, 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 Lanser's 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 Lanser's accounting
and banking records will be submitted in court.

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

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

The debtor can be reached at:

           Lanser SA
           Mario Bravo 15
           Buenos Aires, Argentina

The trustee can be reached at:

           Jorge Gerchkovich
           Avenida Corrientes 1847
           Buenos Aires, Argentina


PANABAIRES SA: Trustee to File Individual Reports on Oct. 16
------------------------------------------------------------
Laura Garcia, the court-appointed trustee for Panabaires S.A.'s
bankruptcy proceeding, will present the validated claims as
individual reports in the National Commercial Court of First
Instance in Buenos Aires on Oct. 16, 2008.

Ms. Garcia will be verifying creditors' proofs of claim until
Sept. 3, 2008.  She will submit to court a general report
containing an audit of Panabaires' accounting and banking
records on Dec. 1, 2008.

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

The debtor can be reached at:

           Panabaires SA
           Paraguay 754
           Buenos Aires, Argentina

The trustee can be reached at:

           Laura Garcia
           Simbron 3537
           Buenos Aires, Argentina


RESIDENTIAL CAPITAL: Board OKs Waiver of Operating Agreement
------------------------------------------------------------
The board of Residential Capital, LLC, including all of ResCap's
independent directors, approved a waiver of Section 2(a)(ii) of
the Amended and Restated Operating Agreement dated Nov. 27,
2006, among ResCap, GMAC LLC and General Motors Corp., in
connection with the purchase by an affiliate of Cerberus Capital
Management, L.P. of certain assets of ResCap's model home
business.

In connection with the sale, ResCap received Series B junior
preferred interests in the purchasing entity, CMH Holdings, LLC,
having a liquidation preference equal to the difference between
the net book value of the assets sold and the cash ResCap
received in connection with the transaction.  Also, as
previously disclosed, an affiliate of Cerberus serves as
managing member of CMH.

Under Section 2(a)(ii) of the Operating Agreement, ResCap
cannot, without a waiver of the agreement's restrictions, make
any investment in a GMAC Affiliate, which includes any entity
under common control with GMAC.  For this purpose, "control"
means the power to direct the management and policies of an
entity, including through the ownership of voting securities or
managing member interests.  By virtue of Cerberus' indirect
ownership of 51% of the membership interests of GMAC and its
ownership of the managing member of CMH, CMH is considered to be
a GMAC Affiliate for purposes of the Operating Agreement.  Under
Section 8 of the Operating Agreement, waivers require approval
by a majority of the
ResCap board, including a majority of the independent directors.

Headquartered in Minneapolis, Minnesota, Residential Capital LLC
-- http://www.rescapholdings.com/-- is the home mortgage unit
of GMAC Financial Services, which is in turn wholly owned by
GMAC LLC.  Its Latin American operations are located in
Argentina, Brazil, Chile, Colombia, Mexico and Venezuela.

                            *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 19, 2008, Moody's Investors Service assigned ratings of
Caa2 and Caa3 to Residential Capital LLC (ResCap)'s senior
secured and junior secured bonds, respectively.  These bonds
were issued as part of ResCap's bond exchange which was
completed on June 4, 2008.  The ratings of ResCap's unsecured
senior debt and unsecured subordinate debt were affirmed at Ca
and C, respectively.  Ratings are under review for downgrade.  
Separately the senior unsecured rating of GMAC LLC was
downgraded to B3 from B2 with a negative outlook.

As disclosed in the Troubled Company Reporter on June 10, 2008,
Fitch Ratings has downgraded Residential Capital LLC's long- and
short-term Issuer Default Ratings to 'D' from 'C' following
completion of the company's distressed debt exchange.  Fitch has
also removed ResCap from Rating Watch Negative, where it was
originally placed on May 2.


SOL DE MEDIODIA: Proofs of Claim Verification Is Until Sept. 1
--------------------------------------------------------------
Maria Mazzoni, the court-appointed trustee for Sol de Mediodia
SRL's bankruptcy proceeding, will be verifying creditors' proofs
of claim until Sept. 1, 2008.

Mr. Mazzoni will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 4 in Buenos Aires, with the assistance of Clerk
No. 7, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections
and challenges that will be raised by Sol de Mediodia's 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 Sol de Mediodia's
accounting and banking records will be submitted in court.

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

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

The debtor can be reached at:

           Sol de Mediodia SRL: gastronomía
           Cabildo 1586
           Buenos Aires, Argentina

The trustee can be reached at:

           Maria Mazzoni
           Viamonte 1337
           Buenos Aires, Argentina



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

CENTRAL EUROPEAN: Files Second Registration Statement With SEC
--------------------------------------------------------------
Central European Media Enterprises Ltd. has filed an automatic
shelf registration statement on Form S-3 with the U.S.
Securities and Exchange Commission.  The registration statement
registers the resale of shares of the company's Class A common
stock issuable upon conversion of Central European's 3.50%
Senior Convertible Notes due 2013.  The automatic shelf
registration statement on Form S-3 became effective upon filing
with the SEC.  Central European's initial issuance of the notes,
in aggregate principal amount of US$475,000,000 was completed in
March 2008 in a private placement pursuant to Rule 144A of the
Securities Act of 1933, as amended.

The notes will become convertible on or after Dec. 15, 2012, or
prior to that date only under certain circumstances, and upon
conversion the company may elect to deliver either (i) shares of
Class A common stock or (ii) cash and, if applicable, shares of
Class A common stock.

When available, a copy of the prospectus may be obtained from
Central European at:

      Aldwych House,
      81 Aldwych London,
      WC2B 4HN, England;
      Attn: CME Development Corporation

The registration statement was filed on behalf of the selling
security holders, and Central European will not receive any
proceeds from the resale of the underlying shares of common
stock.

          About Central European Media Enterprises Ltd.

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".

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
April 25, 2008, Standard & Poor's Ratings Services assigned its
'BB' debt rating to the `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-termcorporate 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-'.


CONCORDIA INSTITUTIONAL: Final Shareholders Meeting on July 21
--------------------------------------------------------------
Concordia Institutional Fixed Income Multi-Strategy Ltd. will
hold its final general meeting on July 21, 2008, at 9:30 a.m. at
Mello Jones & Martin.

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.

Concordia Institutional's shareholders decided on June 12, 2008,
to place the company into voluntary liquidation under Bermuda's
Companies Act 1981.

The liquidator can be reached at:

         Glen Griffin
         12 Bermudiana Road
         3rd Fl., Hamilton HM 11
         Bermuda


YRC WORLDWIDE: Updates Second Quarter 2008 Earnings Guidance
------------------------------------------------------------
YRC Worldwide Inc. last week updated second quarter 2008
earnings guidance to a range of US$0.55 to US$0.65 per share,
which now includes net curtailment gains of US$0.34 per share
and a charge for a significant accident of US$0.09 per share.

Excluding the curtailment gains and the accident charge, second
quarter 2008 earnings from core operations are expected to be
consistent with previously issued guidance of US$0.30 to US$0.40
per share.

"Our operational execution has been strong, and we are building
momentum in spite of the challenging environment," stated Bill
Zollars, Chairman, President and CEO of YRC Worldwide.  "The
cost of fuel creates macroeconomic concerns as we look forward.  
However, of those areas within our control, we remain confident
that we are on the right track to enhance customer value as we
implement network improvements at the National companies,
increase the efficiency and profitability of the Regional
companies and execute solidly at YRC Logistics," Zollars
continued.

The net curtailment gains relate to changes in certain
retirement plans as the company continues its progress toward a
common employee benefits platform across its multiple operating
units.

                        About YRC Worldwide

YRC Worldwide Inc. (Nasdaq: YRCW) -- http://www.yrcw.com/-- is     
the holding company for a portfolio of successful brands
including Yellow Transportation, Roadway, Reimer Express, YRC
Logistics, New Penn, USF Holland, USF Reddaway, and USF Glen
Moore.  The enterprise provides global transportation services,
transportation management solutions and logistics management.
The portfolio of brands represents a comprehensive array of
services for the shipment of industrial, commercial and retail
goods domestically and internationally.  Headquartered in
Overland Park, Kansas, YRC Worldwide employs approximately
60,000 people.

The company has subsidiaries in Bermuda, the United Kingdom,
Netherlands, Singapore, Hong Kong and Mexico.

                            *     *     *

As reported in the Troubled Company Reporter-Latin America on
April 30, 2008, Standard & Poor's Ratings Services affirmed its
ratings on YRC Worldwide Inc., including the 'BB' corporate
credit rating, and removed the ratings from CreditWatch, where
they had been placed with negative implications on Feb. 21,
2008.  The outlook is negative.  The ratings had been placed on
CreditWatch because of heightened concerns over the company's
refinancing risk, earnings performance, and liquidity position
over the next year, given the slowing U.S. economy and
continuing pressures in the trucking sector.


SECURITY CAPITAL: Moody's Junks Provisional Ratings on Debts
------------------------------------------------------------
Moody's Investors Service has downgraded to B2, from A3, the
insurance financial strength ratings of XL Capital Assurance
Inc., XL Capital Assurance (UK) Limited and XL Financial
Assurance Ltd.  In the same rating action, Moody's also
downgraded the debt ratings of Security Capital Assurance Ltd's  
preference shares to Ca from B3 and a related financing trust.
The rating actions conclude a review for possible downgrade that
was initiated on March 4, 2008, and reflects the company's
severely impaired financial flexibility and the company's
proximity to minimum regulatory capital requirements relative to
Moody's estimations of expected case losses.  The outlook for
the ratings is negative.

Moody's ratings on securities that are guaranteed or "wrapped"
by a financial guarantor are generally maintained at a level
equal to the higher of a) the rating of the guarantor or b) the
published underlying rating.  However, as XL Capital Assurance
and XL Financial's ratings are downgraded below the investment
grade level, and reflecting current rating agency policy,
Moody's will withdraw ratings on XL Capital Assurance and XL
Financial-wrapped securities for which there is no published
underlying rating.  Should the guarantors' ratings subsequently
move back into the investment grade range or should the agency
subsequently publish the underlying rating, Moody's would
reinstate the rating to the wrapped instruments.

Security Capital has recorded approximately US$750 million in
cumulative losses arising from its mortgage-related exposures,
primarily from ABS CDOs and to a lesser extent, second-lien RMBS
transactions.  At first quarter 2008, XL Capital Assurance had
US$167 million of statutory surplus, which is approximately
US$102 million above the statutory minimum regulatory
requirement.  Moody's notes that XL Capital Assurance cedes a
majority of premiums and losses to XL Financial under a quota
share reinsurance arrangement, which substantially increases the
amount of resources XL Capital Assurance may draw upon to pay
claims.  

At first quarter 2008, XL Financial had approximately US$1.2
billion of capital.  During fourth quarter 2007, XL Capital
Assurance entered into various additional reinsurance
arrangements with XL Financial designed to maintain XL Capital
Assurance's statutory surplus above the minimum threshold.  
Security Capital has stated that it could incur adverse case
basis loss reserve development of up to approximately 80% of its
established case basis reserves at first quarter 2008 (net of
reinsurance), and still maintain compliance with its regulatory
solvency requirements.  However, Moody's has estimated expected
case losses on the firm's mortgage risks to be in the range of
US$2 billion, suggesting that meaningful further losses may be
recognized and regulatory capital further depleted.

The rating agency added that if XL Capital Assurance's capital
were to fall below the regulatory minimum, there could be
material adverse effects on the firm's financial condition.  A
meaningful portion of the company's credit exposure was written
in credit default swap (CDS) form, and contains a clause that
exposes the firm to mark to market termination in the event of
insolvency.  A breach of minimum regulatory capital requirement
heightens the risk of regulatory intervention, which could
trigger a market value termination of the CDS contracts.

Moody's has re-estimated expected and stress loss projections on
Security Capital's insured portfolio, focusing on the company's
mortgage-related exposures, as well as other sectors of the
portfolio potentially vulnerable to deterioration in the current
environment.  Based on Moody's revised assessment of the risks
in Security Capital's portfolio, estimated stress-case losses
would approximate US$6.6 billion at the Aaa rating threshold.  
This compares to Moody's estimate of the company's total claims
paying resources of approximately US$3.5 billion, a capital
position more consistent with a rating in the single-B category.

According to Moody's, the negative outlook on Security Capital's
ratings reflects continued uncertainty with respect to the
amount of losses that will ultimately arise from the company's
insured portfolio and attendant risks that could occur if losses
develop adversely, including the potential of regulatory
intervention.  The company has stated that it continues to work
toward mitigating the financial stresses impacting the company,
including the commutation, restructuring or settlement of its
obligations with its CDO counterparties and the commutation or
settlement of various reinsurance arrangements with XL Capital
Ltd.

Moody's will continue to evaluate Security Capital's ratings in
the context of changes to the company's strategic and capital
management plans, as well as the future performance of the
company's mortgage-related exposures relative to expectations
and resultig capital adequacy levels.  The rating agency noted
that upward rating pressure could occur if the company is able
to successfully execute on its restructuring plans, although
there is considerable uncertainty about the outcome and timing
of those efforts.  Conversely, downward rating pressure could
occur if minimum regulatory capital requirements are breached.

These ratings have been downgraded:

  -- XL Capital Assurance Inc.: insurance financial strength to
     B2 from A3;

  -- XL Capital Assurance (UK) Limited: insurance financial
     strength to B2 from A3;

  -- XL Financial Assurance Ltd.: insurance financial strength
     to B2 from A3;

  -- Security Capital Assurance Ltd.: provisional rating on
     senior debt to (P)Caa3 from (P)Ba1, provisional rating on
     subordinated debt to (P)Ca from (P)Ba2 and preference
     shares to Ca from B3; and

  -- Twin Reefs Pass-Through Trust: contingent capital
     securities to Caa2 from Ba1.

Based in Hamilton, Bermuda, Security Capital Assurance Ltd.
(NYSE: SCA) -- http://www.scafg.com-- is a holding company
whose primary operating subsidiaries, XL Capital Assurance Inc.
and XL Financial Assurance Ltd, provide credit enhancement and
protection products to the public finance and structured finance
markets throughout the United States and internationally.  For
the three months ended March 31, 2008, Security Capital reported
a net loss available to common shareholders of US$97 million.


SKYLLA LIMITED: Proofs of Claim Filing Deadline Is July 23
----------------------------------------------------------
Skylla Limited's creditors are given until July 23, 2008, to
file their claims to Peter Martin, 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.

Skylla's shareholder decided on June 13, 2008, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.

The liquidator can be reached at:

         Peter Martin
         c/o Mello Jones & Martin
         Thistle House, 4 Burnaby Street
         Hamilton HMFX, Bermuda


SKYLLA LIMITED: Will Hold Final Shareholders Meeting on Aug. 6
--------------------------------------------------------------
Skylla Limited will hold its final general meeting on
Aug. 6, 2008, at 9:30 a.m. at Mello Jones & Martin.

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.

Skylla's shareholder decided on June 13, 2008, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.

The liquidator can be reached at:

         Peter Martin
         c/o Mello Jones & Martin
         Thistle House, 4 Burnaby Street
         Hamilton HMFX, Bermuda



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

BANCO NACIONAL: Sells 14.6MM CSN Shares, Reduces Stake to 4.6%
--------------------------------------------------------------
According to Companhia Siderurgica Nacional S.A., Brazil's
development bank, Banco Nacional de Desenvolvimento Economico e
Social SA, has reduced its stake in the company by selling
14.6 million common shares between April 10 and June 9, Heloiza
Canassa of Bloomberg News reports.

Based on the average price during the period, the CSN shares
sold are worth about BRL1.11 billion (US$694 million), the
report says.

BNDES, with the sale, slashed its CSN stake to 4.6 percent,
Bloomberg states as disclosed by CSN in a regulatory filing.

                            About CSN

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

                          About BNDES

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

                        *     *     *

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


COMPANHIA SIDERURGICA: BNDES Lowers Stake in Firm to 4.6%
---------------------------------------------------------
According to Companhia Siderurgica Nacional S.A., Brazil's
development bank, Banco Nacional de Desenvolvimento Economico e
Social SA, has reduced its stake in the company by selling
14.6 million common shares between April 10 and June 9, Heloiza
Canassa of Bloomberg News reports.

Based on the average price during the period, the CSN shares
sold are worth about BRL1.11 billion (US$694 million), the
report says.

BNDES, with the sale, slashed its CSN stake to 4.6 percent,
Bloomberg states as disclosed by CSN in a regulatory filing.

                          About BNDES

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

                            About CSN

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

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 6, 2008, Standard & Poor's Ratings Services raised its
corporate credit rating on Brazil-based steelmaker Companhia
Siderurgica Nacional to 'BB+' from 'BB' and removed it from
CreditWatch.  S&P had placed the ratings on CreditWatch with
positive implications on May 30, 2008, for better cash flow
protection measures.  The outlook is positive.  At the same
time, S&P raised the corporate credit rating on subsidiary
National Steel SA to 'BB-' from 'B+', with a positive outlook.


COMPANHIA SIDERURGICA: Jiangsu Shagang Wants Stake in Firm
----------------------------------------------------------
Helen Yuan at Bloomberg News reports that Chinese steelmaker
Jiangsu Shagang Group Co. is seeking to purchase a Companhia
Siderurgica Nacional S.A. stake.

According to Bloomberg, Jiangsu Shagang's Vice President Shen
Wenming said the firm doesn't know if other Chinese firms are
interested in buying a stake in Companhia Siderurgica.  The
company is in talks on its own, Mr. Wenming added.

Bloomberg relates that steelmakers who want to buy mines are
increasing.  They want to secure supplies, as iron ore prices
increased 65% this year.  Companhia Siderurgica wants to triple
production at one of its unit Nacional Minerios.  The firm will
boost output at Nacional Minerios to 41 million metric tons per
year by 2012, from 14 million tons this year.  

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

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 6, 2008, Standard & Poor's Ratings Services raised its
corporate credit rating on Brazil-based steelmaker Companhia
Siderurgica Nacional to 'BB+' from 'BB' and removed it from
CreditWatch.  S&P had placed the ratings on CreditWatch with
positive implications on May 30, 2008, for better cash flow
protection measures.  The outlook is positive.  At the same
time, S&P raised the corporate credit rating on subsidiary
National Steel SA to 'BB-' from 'B+', with a positive outlook.


CYRELA BRAZIL: To Purchase Agra Empreendimentos for US$958 Mil.
---------------------------------------------------------------
Cyrela Brazil Realty S.A. Empreendimentos & Participacoes will
buy Agra Empreendimentos Imobiliarios SA for about
BRL1.54 billion (US$958 million) in stock as record lending
fuels demand for homes in Latin America's largest economy,
Adriana Arai writes for Bloomberg News.

Citing Brazilian securities regulator, Bloomberg reports that
Agra shareholders is getting 0.425 common share of Cyrela for
each Agra share they hold, resulting in BRL9.54125 per Agra
share, a 48% premium over Agra's June 20 closing price of
BRL6.45.

Under the agreement, Agra will allow Cyrela for real-estate
projects expansion valued at BRL10 billion this year and its
land bank to increase to BRL30 billion of potential sales,
Bloomberg relates.

According to the filing, Cyrela is issuing new shares to pay for
the acquisition, Bloomberg says.

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

                           *     *     *

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

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


EMPRESA ENERGETICA: Moody's Reviews Rating for Likely Downgrade
---------------------------------------------------------------
Moody's America Latina has placed Empresa Energetica de Mato
Grosso do Sul S.A.'s Ba2 global local currency and Aa3.br
national scale issuer ratings under review for possible
downgrade as a result of a proposed share exchange agreement
between Energias do Brasil and Rede group by which Empresa
Energetica would ultimately be transferred to the Rede group.

The rating review was prompted by the announcement of an asset
exchange agreement between Energias do Brasil and Rede Empresas
de Energia Eletrica SA.  The terms of this agreement basically
consists of an asset swap by which Empresa Energetica's total
shares are transferred to Rede while Rede's 53.7% participation
in Rede Lajeado and 2.2% in Investco will move to Energias do
Brasil.  Rede Lajeado holds 45.4% of Investco's voting capital
and 38.9% of its total capital.  Investco (Ba1, Aa2.br) is a
special-purpose company that operates the 902.5 MW hydroelectric
power plant of Luis Eduardo Magalhaes (Lajeado), located in
Brazil's mid-western state of Tocantins.

Because Empresa Energetica's ratings largely reflect the strong
support of Energias do Brasil (Ba2/Aa3.br), the change of
shareholders will result in weaker support in light of the
higher credit risk presented by the Rede group, which has a
current B2 corporate family rating.  Moody's preliminary
projections indicate that Empresa Energetica should benefit from
synergy gains to be achieved from 2009 onwards with positive
impacts on operating margins although the company's cash flow
might be impaired by the distribution of dividends to meet
financial obligations of its new shareholder.

The conclusion of this review will depend on the outcome of
pending approval from the regulator ANEEL and expected
negotiations with creditors to overcome obstacles that could
arise from the eventual breach of contract clauses embedded in
the existing debt documentation.

Empresa Energetica de Mato Grosso do Sul S.A., headquartered in
Campo Grande, Brazil, is an electricity distribution utility in
the Central West region of Brazil, serving approximately 710,000
consumers with net revenues of BRL693 million in 2007.


ENERGIAS DO BRASIL: Inks Share Exchange Pact With Grupo Rede
------------------------------------------------------------
International Water Power and Dam Construction reports that
Energias do Brasil S.A. has signed a share swap accord with
Grupo Rede.

As reported in the Troubled Company Reporter-Latin America on
Jan. 23, 2008, Energias do Brasil would give up its stake in
Empresa Energetica do Mato Grosso do Sul S.A. for Grupo Rede's
stakes in Rede Lajeado Energia, Rede Lajeado, Investco, and
Tocantins Energia.  Energias do Brasil agreed to swap Brazilian
assets with Grupo Rede as it seeks to generate more electricity
in the country.  Energias do Brasil, in exchange, will get
interests in firms that included Investco.

According to International Water, the agreement will allow
Energias do Brasil to take over a managing control position in
Investco, which owns 902.5-megawatt Lajeado hydro plant in
Tocantins.  Energias do Brasil will have a 73% voting stake in
Investco and will therefore have control over the Lajeado plant.

International Water relates that the agreement is yet to be
approved by Brazilian energy sector regulator ANEEL.

Joao Lima at Bloomberg News reports that Morgan Stanley upgraded
Energias do Brasil's stock to "overweight" from "equal-weight"
after it agreed to swap Brazilian assets with Grupo Rede.  
Energias do Brasil wants to boost its generation capacity in
Brazil.

According to Bloomberg, Morgan Stanley analysts Subhojit Daripa
and Carolina Dores said in a research note, "Energias do
Brasil's greater exposure to the generation business will likely
yield a higher multiple as investors pay more for less risky
assets."

Energias do Brasil S.A. is an integrated utility group
controlled by Energias de Portugal, with activities in
generation, distribution and commercialization of electricity.  
Its power distribution subsdiaries Bandeirante, Escelsa and
Enersul represent altogether some 64% of consolidated total
assets, while the power generation assets represent some 31%.

                          *     *     *

In May 2007, Moody's Investors Service placed a Ba2 long-term
corporate family rating on Energias do Brasil.


FERRO CORP: Ceases Brazil Plants to Reduce Operating Costs
----------------------------------------------------------
Ferro Corporation is taking additional actions to rationalize
manufacturing and reduce expenses worldwide.  The Company will
discontinue manufacturing tile frits and tile color products at
its facilities in Americana, Brazil by the end of June 2008.  
Color products required by Brazilian customers after this time
will be provided by Ferro facilities in Mexico and Spain.

"We believe these changes will allow us to reduce our operating
costs and compete more effectively in the important north Brazil
market," said John Kelly, Latin American Business Manager,
Inorganic Specialties Group.  "We will continue to provide the
high-quality color products and technical service that tile
manufacturers need to be successful and will work closely with
our customers to ensure a smooth transition through these
changes."

Ferro will continue to produce porcelain enamel frit and glass
color and glaze products at the Americana site.

The company said that discontinuing tile color materials
production will reduce employment at the Brazilian location by
approximately 73 positions, and annual savings are expected to
be approximately US$2.0 million to US$2.5 million.

The Company expects to record a pre-tax charge related to the
actions in Brazil during the second quarter, ended
June 30, 2008, of approximately US$1.4 million, including
approximately US$0.9 million in severance costs and US$0.5 in
asset impairment charges.  The charges are expected to reduce
diluted earnings per share for the second quarter by
approximately 2 cents.

The company also would take additional actions in its Inorganic
Specialties business as a part of its continuing initiatives to
reduce expenses.  As a result of these actions, the company
expects to reduce employment by approximately 13 positions,
primarily in Europe and Asia, and to record a pre-tax charge of
approximately US$2.2 million related to severance costs in the
quarter ended June 30, 2008.  This charge is expected to reduce
diluted earnings per share in the quarter ending June 30, 2008,
by approximately 3 cents.  Annual savings resulting from the
additional worldwide expense reduction initiatives is expected
to be approximately US$1.4 million.

                  About Ferro Corporation

Ferro Corporation (NYSE: FOE) -- http://www.ferro.com/-- is a    
supplier of technology-based performance materials for
manufacturers.  Ferro materials enhance the performance of
products in a variety of end markets, including electronics,
solar energy, telecommunications, pharmaceuticals, building and
renovation, appliances, automotive, household furnishings, and
industrial products.  Headquartered in Cleveland, Ohio, the
company has approximately 6,300 employees globally and reported
2007 sales of US$2.2 billion.

The company has subsidiaries in Argentina, Australia, France,
Germany, Brazil, China, Spain , Hong Kong and Korea, among
others.

                       *     *     *

Ferro Corp. carries Moody's corporate family rating of B1 with a
positive outlook.  This rating was assigned on May 2007.


GENERAL MOTORS: S&P Places Ratings on Negative Watch
----------------------------------------------------
Standard & Poor's Ratings Services on Friday said it is placing
its corporate credit ratings on the three U.S. automakers,
General Motors Corp., Ford Motor Co., and Chrysler LLC, on
CreditWatch with negative implications, citing the need to
evaluate the  financial damage being inflicted by deteriorating
U.S. industry conditions -- largely as a result of high gasoline
prices.

Included in the CreditWatch placement are the finance units Ford
Motor Credit Co. and DaimlerChrysler Financial Services Americas
LLC, as well as GM's 49%-owned finance affiliate GMAC LLC.

"We have renewed concerns about all three automakers' future
cash outflows in light of the prospects for U.S. sales for the
rest of 2008 and into 2009," said Standard & Poor's credit
analyst Robert Schulz.  The erosion of demand for SUVs and
pickups has been particularly troubling.  Although these
segments have been weak for some time, the exodus of demand that
began in April, caused by escalating gas prices and consumer
preferences for smaller vehicles, is gathering speed.  Despite
concerted, and in some cases successful, efforts to bolster
their line-ups of smaller vehicles and reduce costs, all three
Michigan-based automakers still rely on light trucks for a
disproportionate share of profitability and cash flow.

The companies' difficulty in anticipating the pace of market
deterioration was reflected today in Ford's announcement that it
expects to use an even larger amount of cash this year and next
than it announced previously, its second negative guidance
revision in a month.  Ford plans to use more than US$16 billion
of cash between 2007 and 2009 in its automotive operations,
including the cost of employee separation programs, unless the
economy rebounds next year.  The company also said this year's
pretax results will be worse than last year's, announced further
light-truck production cuts and shift reductions, and delayed
this fall's launch of the F-150 pickup by two months to clear
existing inventory.  Also worrisome is the dire state of
the vehicle finance market. Ford said Friday it expects Ford
Motor Credit to report a pretax loss for the year (before any
infusion from Ford) caused by weak used (residual) values,
primarily for light trucks.

Although GM and Chrysler have not publicly detailed their
expectations for cash use, all of the factors behind Ford's
weaker guidance also apply to the other U.S.-based automakers.
In addition to weak sales and adverse product mix shifts, the
list of challenges also includes less receptive capital
markets, higher costs for steel and other raw materials, lower
residual values that hurt profitability at the finance units and
reduce consumers' trade-in power, and increasing cash needs for
restructuring efforts.

S&P believes all three companies currently have ample liquidity
for at least the rest of 2008 as measured by cash balances,
available bank facilities, and in some cases unencumbered
assets.  But S&P also believes deteriorating industry
fundamentals could reduce liquidity to undesirable levels by the
second half of 2009.

As part of S&P's reviews, S&P will assess all three companies'
strategies for addressing the weak sales and shifts in demand
away from light trucks and maintaining liquidity at satisfactory
levels through 2009.

Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908.  GM employs
about 266,000 people around the world and manufactures cars and
trucks in 35 countries, including the United Kingdom, Germany,
France, Russia, Brazil and India.  In 2007, nearly 9.37 million
GM cars and trucks were sold globally under the following
brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden,
HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling.  GM's
OnStar subsidiary is the industry leader in vehicle safety,
security and information services.

At March 31, 2008, GM's balance sheet showed total assets of
US$145,741,000,000 and total debts of US$186,784,000,000,
resulting in a stockholders' deficit of US$41,043,000,000.  
Deficit, at Dec. 31, 2007, and March 31, 2007, was
US$37,094,000,000 and US$4,558,000,000, respectively.


HEXION SPECIALTY: S&P Keeps 'B' Rating Under Negative Watch
-----------------------------------------------------------
Standard & Poor's Ratings Services said that its ratings on Salt
Lake City, Ohio-based Hexion Specialty Chemicals Inc. (B/Watch
Neg/--) remain on CreditWatch with negative implications, where
they were placed on July 5, 2007.  The initial placement
followed the announcement of Hexion's proposed debt-financed
acquisition of Huntsman Corp. in a transaction valued at more
than US$10 billion, including assumed debt.
     
The CreditWatch update follows Hexion's filing of a Form 8-K
with the SEC and press release indicating that the transaction,
which was expected to close this year, is no longer viable based
on the proposed highly leveraged capital structure of the
combined company.  Hexion cites a number of factors supporting
this conclusion, including Huntsman's increased net debt and
lower than expected earnings, and Hexion's belief that the
lenders will not provide the committed financing required to
complete the transaction as proposed.  Huntsman issued a
statement indicating that it will seek to enforce its rights
under the merger agreement and to consummate the deal on the
agreed terms.
     
"The ongoing CreditWatch indicates that the ratings of both
companies remain at risk for downgrades, with or without
completing the pending transaction," said Standard & Poor's
credit analyst Kyle Loughlin.  "The CreditWatch will remain in
place until there is further clarity on the prospects for
completion of a transaction and after we have conducted a full
reassessment of the standalone credit quality of each company."
     
Both companies' financial results have weakened since the time
when the transaction was announced, which is consistent with
general trends in the chemicals sector that has been plagued by
weaker economic conditions and escalating raw material costs.
     
As indicated in S&P's initial comments on the transaction, the
proposed acquisition was expected to be very large relative to
Hexion's existing operations, and would have resulted in a
highly aggressive capital structure for a cyclical company, more
than offsetting the expected benefits to the business profile.  
The transaction would result in a global and highly diversified
chemicals producer with over US$16 billion in annual revenue,
compared with Hexion's current revenue of about US$6 billion.  
If completed, the transaction would clearly improve Hexion's
business profile given the stronger product mix, better
diversification, and less dependency on Hexion's core resins
product.
     
However, S&P also noted that Hexion was already highly leveraged
at the time of the announcement, with total debt to EBITDA above
5x, and that a debt-financed transaction would further stretch
the financial profile, even beyond a level appropriate for
Hexion's existing 'B' corporate credit rating.  Hexion's
financial profile now reflects debt to EBITDA of over 7x, after
adjustments including tax-adjusted unfunded employee benefit
obligations, and
the capitalized present value of operating leases.  Similarly,
Huntsman's financial profile has deteriorated with negative
operating trends in its textile effects and pigments segments.

A confluence of weak volumes and substantially higher raw
material costs has compressed the company's margins in certain
products.  Accordingly, Huntsman's financial profile is somewhat
weak for its 'BB-' corporate credit rating and remains at risk
for a modest downgrade, with last-12-months debt to EBITDA of
above 5.0x, including adjustments to reported debt.
     
S&P will resolve the CreditWatch listings after meeting with the
management teams to evaluate future strategic plans, business
prospects, and financial policies, and the potential that a
transaction could still be completed.

Based in Columbus, Ohio, Hexion Specialty Chemicals Inc. --
http://www.hexionchem.com/-- is a producer of thermosetting     
resins, or thermosets.  Thermosets are a critical ingredient in
virtually all paints, coatings, glues and other adhesives
produced for consumer or industrial uses.   Hexion Specialty
Chemicals is controlled by an affiliate of Apollo Management
L.P.  The company has locations in Singapore, China, Australia,
Netherlands, and Brazil.

As reported in the Troubled Company Reporter on May 16, 2008,
Hexion Specialty Chemicals Inc.'s balance sheet at March 31,
2008, showed  the company had total assets of US$4.2 billion and
total liabilities of US$5.5 billion, resulting in a
shareholders' deficit of US$1.3 billion.


NET SERVICOS: To Ink US$200MM Loan With Banco Inbursa for Big TV
----------------------------------------------------------------
Net Servicos de Comunicacao SA will sign a US$200 million loan
with Mexico's Banco Inbursa to fund the acquisition of cable
television and broadband provider Big TV.

Business News Americas relates that Net Servicos will pay the
loan in three equal annual installments that will be completed
by 2019.  The loan will have a yearly interest rate of 7.875%.

The purchase deal for Big TV was closed in December 2007,
BNamericas notes.  Big TV's coverage extends to:

          -- Guarulhos,
          -- Valinhos,
          -- Botucatu,
          -- Jau,
          -- Sertaozinho
          -- Marilia
          -- Ponta Grossa,
          -- Cascavel,
          -- Cianorte,
          -- Guarapuava,
          -- Maceio,
          -- Joao Pessoa.

According to BNamericas, Net Servicos said that part of the
funding will be used for its expansion.

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.


NOVELIS INC: Incurs US$69 Million Net Loss in Fiscal Year 2008
--------------------------------------------------------------
Novelis Inc., a subsidiary of Hindalco Industries Limited
reported net income of US$118 million for the fourth quarter of
fiscal year 2008, which ended on March 31, 2008.  For the full
fiscal year, the company recorded a net loss of US$69 million.  
This compares with net losses of US$64 million and US$265
million, respectively, for the corresponding prior-year periods.

On June 26, 2007, Novelis Board of Directors approved the change
of the company's fiscal year end to March 31 from Dec. 31.  On
June 28, 2007, the company filed a Transition Report on Form 10-
Q for the three-month period ended March 31, 2007, with the
United States Securities and Exchange Commission pursuant to
Rule 13a-10 under the Securities Exchange Act of 1934 for
transition period reporting.

"In the face of an inflationary environment, we are focused on
operational performance and risk management improvement,"
President and Chief Operating Officer Martha Finn Brooks said.
"We made good progress last year through initiatives such as
portfolio optimization, price increases, working capital
improvements and reductions in corporate costs.  The benefits
can be seen in our increased revenues and stronger cash flow."

"At the same time," Ms. Brooks added, "we continued to expand
our business with capacity increases in the fast-growing markets
of Asia and South America and further implementation of our
proprietary Novelis Fusion(TM) technology for multi-alloy
products."

                      Fourth Quarter Summary

Flat-rolled product shipments increased in the fourth quarter
versus the prior year in all of the company's reported regions
except Europe.  Despite continued challenging conditions in
North America, total rolled products shipments increased 21
kilotonnes (kt) over the corresponding prior period, from 772 kt
to 793 kt.

Novelis reported pre-tax income of US$117 million on sales of
US$2,862 million for the fourth quarter, compared with the
prior-year period when it incurred a pre-tax loss of US$57
million on sales of US$2,630 million.  The US$174 million
increase in pre-tax earnings includes non-cash unrealized gains
on derivatives of US$118 million versus a loss of US$1 million
for the same prior-year period.  The gain was primarily driven
by an increase in the forward aluminum price on the London Metal
Exchange (LME) during the fourth quarter of fiscal year 2008.

The increased earnings also reflect significant underlying
operational improvement for Novelis, including:

   -- Product mix improvements and price increases added
      approximately US$49 million of pre-tax earnings in the
      quarter compared with the prior-year period;

   -- The company's exposure to customer contracts with metal
      price ceilings was reduced by US$27 million, net of hedges
      and exclusive of the impact of the accounting associated
      with the acquisition, compared with the corresponding
      quarter of 2007; and

   -- Corporate selling, general and administrative (SG&A)
      expenses were reduced by US$44 million including a
      reduction in sale transaction fees of US$32 million and
      other reductions driven by streamlining of corporate staff
      and costs related to financial reporting requirements in  
      the prior-year period.

Improved operational performance was partially offset by higher
input and operational costs in the quarter compared with the
prior-year period.  Higher operational costs were driven
primarily by the strengthening currencies in Europe and Brazil.

Included in the net income of US$118 million for the fourth
quarter of fiscal year 2008 is US$1 million of income tax
benefit.  This effective tax rate differs from the statutory
rate primarily due to these tax items:

  -- US$20 million of tax benefit related to exchange
     translation and re-measurement items;

  -- US$60 million of tax benefit on change in valuation
     allowances;

  -- US$24 million of tax expense associated with expense/income
     items with no tax effect; and

  -- US$25 million of tax expense associated with enacted tax
     rate changes.

Cash taxes paid during the fourth quarter of fiscal year 2008
were US$14 million.

                       Full Year Results

For the fiscal year ended March 31, 2008, Novelis reported a
combined net loss of US$69 million.  This compares with a net
loss of US$265 million for the corresponding period of 2007.

Full-year products shipments increased to 3,150 kt from 3,113 kt
in the prior year.  The company incurred a combined pre-tax loss
of US$62 million on combined net sales of US$11,246 million in
the current year, which represents an improvement of US$302
million over the prior year when Novelis reported a pre-tax loss
of US$364 million on net sales of US$10,160 million.

The combined pre-tax loss for the fiscal year 2008 includes a
number of non-recurring expenses related to the acquisition by
Hindalco.  These include US$45 million of stock compensation
expense triggered by the sale of Novelis and US$32 million for
sale transaction costs, among other items, as the company
previously disclosed in its financial results for the first
quarter of fiscal year 2008.  Excluding the transaction
expenses, pre-tax earnings improvement was US$379 million
compared with the corresponding period of 2007.  This was
primarily driven by improvements in prices, product mix and
volumes, reduced corporate costs and reduced exposure to
contracts with metal price ceilings.  In addition, the combined
pre-tax loss for the fiscal year ended March 31, 2008, was
impacted by certain income and expense items associated with
fair value adjustments recorded at the date of acquisition.  The
net pre-tax impact of these items was a benefit of US$21 million
primarily driven by the amortization of accruals related to
unfavorable contracts partially offset by higher depreciation
and amortization.

Included in the net loss of US$69 million is US$7 million of
income tax expense.  This compares with the corresponding period
of 2007 when the net loss of US$265 million included an income
tax benefit of US$99 million.  Significant tax items in the
fiscal year 2008 included US$92 million of tax expense related
to exchange translation and re-measurement items, and US$78
million of tax benefit associated with enacted tax rate changes.

Cash taxes paid during the fiscal year 2008 were US$73 million.

Data for all periods, except as of and for the year ended March
31, 2007, are derived from the company's audited consolidated
and combined financial statements included in its Annual Report
on Form 10-K for the year ended March 31, 2008.  All data as of
and for the year ended March 31, 2007, are derived from its
unaudited condensed consolidated financial statements included
in the transition period ended March 31, 2007, and its Quarterly
Report on Form 10-Q for the period ended Dec. 31, 2007.

For further information regarding Novelis' fiscal year results,
please review the company's Annual Report on Form 10-K as filed
with the U.S. Securities and Exchange Commission on June 19,
2008.

                          About Novelis

Based in Atlanta, Georgia, Novelis Inc., (NYSE: NVL) (TSX: NVL)
-- http://www.novelis.com/-- is the global provider of aluminum
rolled products and aluminum can recycling.  The company
operates in 11 countries and has approximately 12,900 employees.
Novelis has the capability to provide its customers with a
regional supply of technologically sophisticated rolled aluminum
products throughout Asia, Europe, North America and South
America.  Through its advanced production capabilities, the
company supplies aluminum sheet and foil to the automotive and
transportation, beverage and food packaging, construction and
industrial, and printing markets.

Novelis South America operates two rolling plants and primary
production facilities in Brazil in the Latin American region.
Novelis also has operations in Germany, Switzerland and Korea.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
April 2, 2008, Standard & Poor's Ratings Services has revised
its outlook on Atlanta-based Novelis Inc. to stable from
negative.  At the same time, S&P affirmed its ratings, including
the 'BB-' long-term corporate credit rating, on Novelis.  S&P
also withdrew its 'B-2' short-term counterparty credit rating on
the company, due to lack of market need.



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

AEI: Moody's Rates Proposed US$250MM Sr. Unsecured Notes at B2
--------------------------------------------------------------
Moody's Investors Service has affirmed the B1 Corporate Family
Rating for AEI and assigned a B2 rating to AEI's proposed
issuance of US$250MM senior unsecured notes due in 2018.  In
addition, Moody's has affirmed AEI's senior secured credit
facilities rating of Ba3.  The outlook remains stable.

The rating affirmations reflect Moody's expectation that AEI
will use the proceeds from the proposed offering for debt
repayment and to fund new investment opportunities.  The notes
are expected to be issued in late June 2008.  The B2 rating for
the notes reflect their low tier standing as the new unsecured
notes are contractually subordinated to a much larger issue of
US$968MM senior secured bank term loans due in March of 2014 and
US$500MM of senior secured bank revolving facilities due in
March 2012.

The rating for the senior unsecured notes was determined using
Moody's Loss Given Default model.  Based on AEI's B1 Corporate
Family Rating and Probability of Default Ratings of B1, and as a
result of the small size of the proposed offering relative to
the existing senior secured facilities, the LGD model would
suggest a rating of B3.  The B2 rating assigned reflects Moody's
understanding that over time, the company intends to shift its
parent company debt more toward senior unsecured notes and to
reduce the percentage of secured credit facilities in its
capital structure.  The rating also reflects Moody's view, based
on the diversity of AEI's portfolio and the moderate amount of
leverage currently employed at the operating companies, that in
a default scenario and possible sale of individual operating
companies that there would likely be excess collateral available
to the senior unsecured note holders.

AEI's B1 CFR also reflects its moderately leveraged consolidated
capital structure and the structural subordination of its parent
level recourse debt to a significant amount of non-recourse debt
at its operating companies.  Moody's views the structural
subordination constraints as somewhat mitigated by the
diversification provided by AEI's operating subsidiaries and by
the stable and predictable cash flows provided by operations in
various other countries, including Colombia, Guatemala,
Dominican Republic, Poland, Turkey and the Philippines, in
addition to Brazil.  Moody's notes, however, the company is
still in the early stages of its formation and is considering
making additional investments in countries such as China and
Peru, in which they have recently entered and have a limited
operating history.

Over the forecast horizon, we expect AEI to generate positive
free cash flow and to maintain consolidated FFO to debt coverage
of approximately 20%.  The company's ratio of consolidated debt
to total capitalization is currently about 59% and is projected
to increase slightly as we expect the company will begin some
greenfield construction projects. A  number of the company's key
projects are also currently lightly levered at the operating
company level.  Under reasonable scenarios the company could
withstand the nationalization of other projects without a
materially adverse effect on the parent's credit profile, as
long as they are not a primary source of cash reliance for AEI's
debt service requirements and investment needs and the company
is able to at least recover its costs.

We also note that approximately 45% of the AEI's 2007 cash
received from subsidiaries were supported by businesses with
revenues that are either US dollar denominated or US dollar-
linked, which m itigates to some degree the volatility of
currency risk. Additionally, the liquidity position at both the
group and parent level is adequate, sustained by strong
operating cash flows at the operating company level, the
aggregate US$500 million revolving credit facility, and cash on
hand.

Ratings/Assessments assigned:

AEI

    -- Senior Unsecured Notes due in 2018—B2 (LGD5, 75%)

Ratings affirmed/Assessments revised:

AEI

    -- Corporate Family Rating -- B1
    -- Probability of Default Rating -- B1
    -- Senior secured credit facilities -- Ba3 (LGD3, 34%)

Incorporated in the Cayman Islands, AEI is an international
holding company of investment interests in a globally
diversified portfolio of 37 companies that engage in natural gas
distribution, transportation, and services; power generation and
distribution, and retail fuel.  AEI's businesses are located
within 19 countries, which are primarily speculative grade
emerging market economies.  In aggregate, the group's power
infrastructure serves the power needs of approximately 6 million
customers worldwide.  A wholly owned subsidiary of AEI, AEI
Services LLC has offices in Houston, TX.



BEAR STEARNS: Two Former Managers Indicted on Fraud Charges
-----------------------------------------------------------
Chelsea Emery at Reuters reports that former Bear Stearns High-
Grade Structured Credit Strategies Enhanced Leverage Master Fund
Ltd. and Bear Stearns High-Grade Structured Credit Strategies
Master Fund Ltd. managers Ralph Cioffi and Matthew Tannin were
arrested and indicted on conspiracy and securities fraud
charges.

Reuters relates that a federal criminal investigation was
conducted on the collapse of the two Cayman Islands funds
Messrs. Cioffi and Tannin supervised.  

The indictment stated that Messrs. Cioffi and Tannin "lied about
the funds' prospects despite concerns over liquidity and the
outlook for the market."  Attorneys for Messrs. Cioffi and
Tannin said they will fight the charges, Reuters notes.

Mr. Cioffi is also facing an "insider trading charge" for
transferring a part of his investments from one of the funds
without informing investors about the move, Reuters says, citing
prosecutors.

According to Bloomberg, the collapse of the High Grade
Structured Credit Strategies Master Fund and the Enhanced Master
Fund led to questions about the oversight and risk management
operations at Bear Stearns.

Grand Cayman, Cayman Islands-based Bear Stearns High-Grade
Structured Credit Strategies Enhanced Leverage Master Fund Ltd.
and Bear Stearns High-Grade Structured Credit Strategies Master
Fund Ltd. are open-ended investment companies, which sought high
income and capital appreciation relative to the London Interbank
Offered Rate, and designed for long-term investors.

On July 30, 2007, the Funds filed winding up petitions under the
Companies Law (2007 Revision) of the Cayman Islands.  Simon
Lovell Clayton Whicker and Kristen Beighton at KPMG were
appointed joint provisional liquidators.  The joint liquidators
filed for Chapter 15 petitions before the U.S. Bankruptcy Court
for the Southern District of New York the next day.  On
Aug. 30, 2007, the Honorable Burton R. Lifland denied the Funds
protection under Chapter 15 of the Bankruptcy Code.

Fred S. Hodara, Esq., Lisa G. Beckerman, Esq., and David F.
Staber, Esq., at Akin Gump Strauss Hauer & Feld LLP, represent
the liquidators in the United States.  The Funds' assets and
debts are estimated to be more than US$100,000,000 each.  (Bear
Stearns Funds Bankruptcy News, Issue No. 20; Bankruptcy
Creditors' Service Inc.; http://bankrupt.com/newsstand/or   
215/945-7000)


BGI SHORT HORIZON: Final Shareholders Meeting Is on June 27
-----------------------------------------------------------
BGI Short Horizon Fund Ltd. will hold its final shareholders
meeting on June 27, 2008, at 9:00 a.m., at the registered office
of the company.

These matters will be taken up during the meeting:

   1) accounting of the wind-up process, and

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

BGI Short Horizon's shareholder agreed on May 6, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

               Walkers SPV Limited
               Walker House, 87 Mary Street,
               George Town, Grand Cayman,
               Cayman Islands


BILP HOLDINGS: Sets Final Shareholders Meeting for June 27
----------------------------------------------------------
BILP Holdings Ltd. will hold its final shareholders meeting on
June 27, 2008, at 10:00 a.m., at the registered office of the
company.

These matters will be taken up during the meeting:

   1) accounting of the wind-up process, and

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

BILP Holdings' shareholder agreed on May 9, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidator can be reached at:

               Walkers SPV Limited
               Walker House, 87 Mary Street,
               George Town, Grand Cayman,
               Cayman Islands


CORSAIR (CAYMAN ISLANDS): Final Shareholders Meeting on June 27
---------------------------------------------------------------
Corsair (Cayman Islands) No.3 will hold its final shareholders
meeting on June 27, 2008, at 12:00 p.m., at the registered
office of the company.

These matters will be taken up during the meeting:

   1) accounting of the wind-up process, and

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

Corsair's shareholder agreed on May 13, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidator can be reached at:

               Walkers SPV Limited
               Walker House, 87 Mary Street,
               George Town, Grand Cayman,
               Cayman Islands


FUTURE PLAZA: Will Hold Final Shareholders Meeting on June 27
-------------------------------------------------------------
Future Plaza Holdings will hold its final shareholders meeting
on June 27, 2008, at 9:30 a.m., at the registered office of the
company.

These matters will be taken up during the meeting:

   1) accounting of the wind-up process, and

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

Future Plaza's shareholder agreed on May 8, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidator can be reached at:

               Walkers SPV Limited
               Walker House, 87 Mary Street,
               George Town, Grand Cayman,
               Cayman Islands


HERO I: Sets Final Shareholders Meeting for June 27
---------------------------------------------------
Hero I Limited will hold its final shareholders meeting on
June 27, 2008, at 11:00 a.m., at the registered office of the
company.

These matters will be taken up during the meeting:

   1) accounting of the wind-up process, and

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

Hero I's shareholder agreed on May 12, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidator can be reached at:

               Walkers SPV Limited
               Walker House, 87 Mary Street,
               George Town, Grand Cayman,
               Cayman Islands


INCOGRAIN INT'L: Deadline for Proofs of Claim Filing Is Today
-------------------------------------------------------------
Incograin International Trading Ltd.'s creditors have until June
24, 2008, to prove their claims to Jaime Cesary Nissel Filho,
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.

Incograin International's shareholder(s) decided on May 16,
2008, to place the company into voluntary liquidation under The
Companies Law (2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

                Jaime Cesary Nissel Filho
                Itupava, 396, 80060-250,
                Curitiba, Parana
                Brazil


INVISTA BRANDYWINE: Deadline for Claims Filing Is June 27
---------------------------------------------------------
Invista Brandywine Ltd.'s creditors have until June 27, 2008, to
prove their claims to E. Andrew Hersant and Christopher
Humphries, 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.

Invista Brandywine's shareholder decided on May 26, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

                E. Andrew Hersant and Christopher Humphries
                Attn: Stuarts Walker Hersant,
                Attorneys-at-Law, P.O. Box 2510,
                Dr. Roy’s Drive, Grand Cayman,
                Cayman Islands
                Telephone: (345) 949 3344
                Fax: (345) 949 2888


INVISTA BRANDYWINE: Final Shareholders Meeting Is on June 30
------------------------------------------------------------
Invista Brandywine Ltd. will hold its final shareholders meeting
on June 30, 2008, at the offices of Stuarts Walker Hersant
Attorneys-at-Law, 36A Dr Roy’s Drive, Grand Cayman, Cayman
Islands.

These matters will be taken up during the meeting:

   1) accounting of the wind-up process, and

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

Invista Brandywine's shareholder agreed on May 26, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

                E. Andrew Hersant and Christopher Humphries
                Attn: Stuarts Walker Hersant,
                Attorneys-at-Law, P.O. Box 2510,
                Grand Cayman KY1-1104, Cayman Islands
                Telephone: (345) 949 3344
                Fax: (345) 949 2888


KENT FUNDING: Will Hold Final Shareholders Meeting on June 27
-------------------------------------------------------------
Kent Funding IV Ltd. will hold its final shareholders meeting on
June 27, 2008, at 11:30 a.m., at the registered office of the
company.

These matters will be taken up during the meeting:

   1) accounting of the wind-up process, and

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

Kent Funding's shareholder agreed on May 12, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidator can be reached at:

               Walkers SPV Limited
               Walker House, 87 Mary Street,
               George Town, Grand Cayman,
               Cayman Islands


PINTO TOTTA: Sets Proofs of Claim Filing Deadline for June 27
-------------------------------------------------------------
Pinto Totta International Finance's creditors have until
June 27, 2008, to prove their claims to E. Andrew Hersant and
Christopher Humphries, 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.

Pinto Totta's shareholder decided on May 26, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidators can be reached at:

                E. Andrew Hersant and Christopher Humphries
                Attn: Stuarts Walker Hersant,
                Attorneys-at-Law, P.O. Box 2510,
                Grand Cayman KY1-1104, Cayman Islands
                Telephone: (345) 949 3344
                Fax: (345) 949 2888


PINTO TOTTA: Will Hold Final Shareholders Meeting on June 30
------------------------------------------------------------
Pinto Totta International Finance will hold its final
shareholders meeting on June 30, 2008, at the offices of Stuarts
Walker Hersant Attorneys-at-Law, 36A Dr Roy’s Drive, Grand
Cayman, Cayman Islands.

These matters will be taken up during the meeting:

   1) accounting of the wind-up process, and

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

Pinto Totta's shareholder agreed on May 26, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidators can be reached at:

                E. Andrew Hersant and Christopher Humphries
                Attn: Stuarts Walker Hersant,
                Attorneys-at-Law, P.O. Box 2510,
                Grand Cayman KY1-1104, Cayman Islands
                Telephone: (345) 949 3344
                Fax: (345) 949 2888


POTENTIAL ENERGY: To Hold Final Shareholders Meeting on June 27
---------------------------------------------------------------
Potential Energy Master Fund Ltd. will hold its final
shareholders meeting on June 27, 2008, at 1:00 p.m., at the
registered office of the company.

These matters will be taken up during the meeting:

   1) accounting of the wind-up process, and

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

Potential Energy's shareholder agreed on May 13, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

               Walkers SPV Limited
               Walker House, 87 Mary Street,
               George Town, Grand Cayman,
               Cayman Islands


PROTON THREE: Sets Final Shareholders Meeting for June 27
---------------------------------------------------------
Proton Three Ltd. will hold its final shareholders meeting on
June 27, 2008, at 12:30 p.m., at the registered office of the
company.

These matters will be taken up during the meeting:

   1) accounting of the wind-up process, and

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

Proton Three's shareholder agreed on May 13, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidator can be reached at:

               Walkers SPV Limited
               Walker House, 87 Mary Street,
               George Town, Grand Cayman,
               Cayman Islands


RITCHIE CONVERTIBLE: Proofs of Claim Filing Deadline Is June 27
---------------------------------------------------------------
Ritchie Convertible Arbitrage Trading Ltd.'s creditors have
until June 27, 2008, to prove their claims to Avalon Management
Limited, 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.

Ritchie Convertible's shareholder decided on May 13, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

                Avalon Management Limited
                Third Floor, Zephyr House
                Mary Street, P.O. Box 715,
                Grand Cayman, Cayman Islands
                Telephone: (+1) 345 946-4422
                Fax: (+1) 345 769-9351


RITCHIE REAL ESTATE: Proofs of Claim Filing Deadline Is June 27
---------------------------------------------------------------
Ritchie Real Estate Financing Ltd.'s creditors have until
June 27, 2008, to prove their claims to Avalon Management
Limited, 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.

Ritchie Real Estate's shareholder decided on May 5, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

                Avalon Management Limited
                Third Floor, Zephyr House
                Mary Street, P.O. Box 715,
                Grand Cayman, Cayman Islands
                Telephone: (+1) 345 946-4422
                Fax: (+1) 345 769-9351


SANTOSHI CLO: Will Hold Final Shareholders Meeting on June 27
-------------------------------------------------------------
Santoshi CLO Capital Corp. will hold its final shareholders
meeting on June 27, 2008, at 10:30 a.m., at the registered
office of the company.

These matters will be taken up during the meeting:

   1) accounting of the wind-up process, and

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

Santoshi CLO's shareholder agreed on May 12, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidator can be reached at:

               Walkers SPV Limited
               Walker House, 87 Mary Street,
               George Town, Grand Cayman,
               Cayman Islands


SIR LAN INVESTMENTS: Proofs of Claim Filing Is Until June 27
------------------------------------------------------------
Sir Lan Investments Ldc.'s creditors have until June 27, 2008,
to prove their claims to Avalon Management Limited, 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.

Sir Lan Investments' shareholder decided on May 8, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

                Avalon Management Limited
                Third Floor, Zephyr House
                Mary Street, P.O. Box 715,
                Grand Cayman, Cayman Islands
                Telephone: (+1) 345 946-4422
                Fax: (+1) 345 769-9351



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


CORPORACION NACIONAL: Needs to be Upgraded, Mining Minister Says
----------------------------------------------------------------
Mining Minister Santiago Gonzales said at a KPMG seminar on
June 19 in Santiago that Corporacion Nacional del Cobre, a.k.a.
Codelco, needs upgrading, Business News Americas reports.

BNamericas relates that protests demanding for the partial
privatization of Codelco have been increasing in recent months.    
The government admits that Codelco's structure needs an overhaul
and has even presented a bill to reform its corporate
governance, chiefly through a remodeling of its board.  "This
bill does not attempt to change the ownership of the company,"
Minister Gonzales said.

The proposed changes are positive, but they aren't enough to let
Codelco compete alongside publicly traded resource groups,
BNamericas says, citing the University of Chile's business
school dean Felipe Morande.

As previously reported in the Troubled Company Reporter-Latin
America, Codelco's workers had staged a drawn-out strike in
April to demand bonuses and benefits.  Work stoppage brought
closure of some of Codelco's mines, resulting in the company
incurring almost US$100 million on supply services as of
April 29, and contributed to the rising of copper prices.  
Protests, however, stopped after the government proposed, and
Codelco agreed, that subcontract employees get an advance on a
CLP500,000 bonus that was due to be paid by year-end, with the
CLP300,000 to be advanced by suppliers.  On May 20, Codelco said
92% of its approximately 30,000 contract workers have already
received the agreed 2008 production bonus payments.

Codelco lost four executives to rival firms in the first five
months of 2008.  Codelco is losing top executives after
commodity prices increased.  The prolonged losing of skilled
officials could cause delays in reaching output targets and
higher costs for future expansions.  The firm is seeking new
managers as Chilean firms develop US$22 billion of mining
projects after demand for metals rose.

Corporacion Nacional del Cobre -- Codelco -- explores, develops,
mines and processes copper in Chile.  The principal product of
the company is Grade A copper cathodes.  The company, which is
owned by Chilean government, exports most of its production to
companies in Europe and Asia.



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

BRIGHTPOINT INC: Signs Agreement With Synchronoss
-------------------------------------------------
Brightpoint, Inc., has entered into an agreement to use
Synchronoss's ConvergenceNow(r) software platform for the
activation of certain wireless devices.

This agreement will allow Brightpoint to add another value added
service to its world class suite of customized logistic
services.  Under the Agreement, Brightpoint will be able to add
an integrated online activation service to its seamless
integrated solution for the telecommunications and consumer
electronics industry that includes order capture, order
management, fulfillment, and distribution of devices, mobile
enhancements and content throughout North America and other
areas.

Headquartered in Plainfield, Indiana, Brightpoint, Inc. --
http://www.brightpoint.com/-- distributes wireless devices and
accessories, as well as provision of customized logistic
services to the wireless industry.  The company primarily
operates in Australia, Colombia, Finland, Germany, India, New
Zealand, Norway, the Philippines, the Slovak Republic, Sweden,
United Arab Emirates and the United States.  The company's
customers include mobile operators, mobile virtual network
operators, resellers, retailers and wireless equipment
manufacturers.  Brightpoint was incorporated in 1989 under the
name Wholesale Cellular USA, Inc. and changed its name to
Brightpoint Inc. in 1995.

                         *     *     *

On April 12, 2006, Standard & Poor's placed Brightpoint's long-
term local and foreign issuer credit ratings at BB- with a
stable outlook.



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

SIRVA INC: OOIDA Demands Full Distribution of US$5,000,000 Claim
----------------------------------------------------------------
Owner Operator Independent Drivers Association, a court-
appointed representative of a class composed of truck owner-
operators who have provided operational services to Sirva Inc.
and its debtor-affiliates, asks the U.S. Bankruptcy Court for
the Southern District of New York to order the Debtors to comply
with the distribution provisions under the confirmed First
Amended Prepackaged Joint Plan of Reorganization.

The Debtors had identified OOIDA as one of their 30 largest
unsecured creditors, with an undisputed claim for US$5,000,000.  
The claim arises from a class action settlement agreement,
requiring Debtors SIRVA, Inc., Allied Van Lines, Inc., North
American Van Lines, Inc., and Global Van Lines, Inc., to pay
US$8,000,000.  Of the settlement amount, US$3,000,000 had
already been paid prior to the Petition Date.

According to Daniel E. Cohen, Esq., at The Cullen Law Firm PLLC
in Washington, D.C., OOIDA is entitled to receive the full
amount of the distributions on the Effective Date.  However, the
Debtors have distributed only 60% of the amount due to OOIDA,
stating that they do not need to make the remaining distribution
until May 2009, pursuant to certain schedules, term-sheets, and
statements preceding the final confirmation of the Plan.

OOIDA insists that the Debtors' refusal to pay is unsustainable,
because:

   (1) the express terms of the Plan entitled OOIDA to the full
       amount of their claim upon the Effective Date;

   (2) the Debtors are bound by the terms of the Plan in
       accordance with Section 1141 of the Bankruptcy Code, and
       they can not challenge the confirmed Plan at this time;

   (3) the Plan contains a merger clause stipulating that it
       supersedes all previous negotiations, agreements, and
       representations; and

   (4) as a matter of law, the Plan is essentially a contract
       between the parties, and all prior obligations of the
       parties are extinguished by the Plan.

OOIDA tells the Court that the Plan binds the Debtors to make a
full payment on behalf of their claim.  Accordingly, the Debtors
should not be allowed to modify, clarify, or repudiate their
current contractual obligation.

                          About Sirva Inc.

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.  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.  
The Court confirmed the Debtor's First Amended Prepackaged Plan
on May 7, 2008.  The Debtors' First Amended Prepackaged Joint
Plan of Reorganization became effective on May 12, 2008.  

(Sirva Inc. Bankruptcy News; Bankruptcy Creditors' Services Inc.
http://bankrupt.com/newsstand/or 215/945-7000)



====================
E L  S A L V A D O R
====================

AES CORP: Moody's Revises LGD 4 Point Estimate to 56% From 57%
--------------------------------------------------------------
The AES Corporation (B1 Corporate Family Rating) has completed
its previously announced tender offer to purchase approximately
US$760 million of outstanding senior notes.  While no ratings
changed as a result,  Moody's Investors Service has revised the
LGD point estimate on its senior unsecured notes to LGD 4, 57%
from LGD 4, 56%.

The AES Corporation (NYSE:AES) -- http://www.aes.com/-- is a
power company with operations in South America, Europe, Africa,
Asia and the Caribbean. The Company generates 44,000 megawatts
of electricity through 124 power facilities, and delivers
electricity through 15 distribution companies.

AES has been in Eastern Europe for over ten years, since it
acquired three power plants in Hungary in 1996. Currently, AES
has two distribution companies in Ukraine, which serve
1.2 million customers and generation plants in the Czech
Republic and Hungary.  AES is also the leading company in
biomass conversion in Hungary, generating 37% of the nation's
total renewable generation in 2004. The company has Latin
America operations in Argentina, Brazil, Chile, Dominican
Republic, El Salvador and Panama.

AES's business group in Asia & Middle East is comprised of
electric utilities and generation plants in China, India,
Kazakhstan, Oman, Qatar, Pakistan and Sri Lanka. Fuels include
coal, diesel, hydro, gas and oil. AES has been in the region
since 1994, when it acquired the Cili generation plant in China.



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

AIR JAMAICA: Workers Disgruntled With Wage Offer From Ministry
--------------------------------------------------------------
Radio Jamaica reports that Air Jamaica employees are
disappointed with the Jamaican Finance Ministry's wage offer.

As reported in the Troubled Company Reporter-Latin America on
June 12, 2008, the National Workers Union said it obtained
information saying that Air Jamaica is in a position
to grant workers a salary increase.  Air Jamaica's management
had been negotiating a new wage and fringe benefits contract
with union and staff representatives.  Air Jamaica employees had
been restive for several months when the airline admitted it
couldn't afford to raise their salaries and fringe benefits due
to financial problems.  The strike ended after unions agreed to
present proposals on ways for Air Jamaica to cut costs and pass
on the savings to employees.

Radio Jamaica relates that the National Workers met with Air
Jamaica workers last Saturday.  According to Union Chief
Granville Valentine, the employees are angry and disappointed at
being excluded from the recent Memorandum of Understanding
between the government and public sector workers.  "Air Jamaica
is 100% owned by government which and is a part of the essential
services of Jamaica.  We're singled out and pushed aside and
were not granted a similar increase in benefits and salaries
(granted to other workers under MOU3)," Mr. Valentine explained.

"No administration has ever capitalized on Air Jamaica for it to
run smoothly, it is always behind and (we're now) hearing the
government talking about financing other airlines when Air
Jamaica is falling through the ground.  Any contribution that is
going to go towards any airline must be ours," Radio Jamaica
quoted Mr. Valentine.

Headquartered in Kingston, Jamaica, Air Jamaica --
http://www.airjamaica.com/-- was founded in 1969.  It flies
passengers and cargo to almost 30 destinations in the Caribbean,
Europe, and North America.  Air Jamaica offers vacation packages
through Air Jamaica Vacations.  The company closed its intra-
island services unit, Air Jamaica Express, in October 2005.  The
Jamaican government assumed full ownership of the airline after
an investor group turned over its 75% stake in late 2004.  The
government had owned 25% of the company after it went private in
1994.  The Jamaican government does not plan to own Air Jamaica
permanently.

                          *    *     *

As reported in the Troubled Company Reporter-Latin America on
June 12, 2007, Moody's Investors Service assigned a rating of B1
to Air Jamaica Limited's guaranteed senior unsecured notes.

On July 21, 2006, Standard & Poor's Rating Services assigned a
"B" long-term foreign issuer credit rating on Air Jamaica Ltd.,
which is equal to the long-term foreign currency sovereign
credit rating on Jamaica, based on the government's
unconditional guarantee of both principal and interest payments.


CABLE & WIRELESS: Will Launch Prepaid BlackBerry Service
--------------------------------------------------------
The Jamaica Gleaner reports that Cable and Wireless Plc's
Jamaican unit will be launching prepaid BlackBerry voice and
date service.

According to The Gleaner, the service will be launched on two
plans:

   -- unlimited e-mail for J$999 per month; and

   -- unlimited e-mail and Internet for J$1,899 a month.

The Gleaner notes that subscribers will pay 50% of the fee in
the first 60 days up to Aug. 22, 2008.  The two plans are
accessible on all BlackBerry smartphones.

Cable & Wireless will roll out the service in its other
Caribbean markets.  BlackBerry handset users have had access to
post-paid service.

The Gleaner relates that Cable & Wireless Jamaica's Commercial
Director Mariano Doble said, "With the majority of Jamaica's
mobile market consisting of prepaid customers, C&W [Cable &
Wireless] recognises the value of a prepaid BlackBerry service,
and we think it will enhance the way people live, work and play.  
We are pleased to be the first provider to offer this service in
Jamaica."

Headquartered in London, Cable & Wireless Plc
-- http://www.cw.com/new/-- operates through two standalone
business units -- International and Europe, Asia & US.  The
International business unit operates integrated
telecommunications companies in 33 countries, with principal
operations in the Caribbean, Panama, Macau, Monaco and the
Channel Islands.  The Europe, Asia & U.S. business unit provides
enterprise and carrier solutions to the largest users of
telecoms services across the U.K., U.S., continental Europe and
Asia -- and wholesale broadband services in the U.K.  The
company also has operations in India, China, the Cayman Islands
and the Middle East.

                        *     *     *

As reported in the Troubled Company Reporter-Europe on
May 26, 2008, Standard & Poor's Ratings Services has revised its
outlook on Cable & Wireless PLC to developing from stable.  The
developing outlook means ratings can be raised, lowered, or
affirmed.  The 'BB-' long-term and 'B' short-term corporate
credit ratings remain unchanged.



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

CHRYSLER LLC: Exceeding Financial Targets Despite Challenges
------------------------------------------------------------
Nancy Rae, Chrysler LLC's Senior Vice President of Human
Resources and Corporate Communications, defends Chrysler's
status in the slowing economy and period of great change in the
U.S. auto industry.

              The State of the US Auto Industry in 2008

Chrysler's full year plan for the market in 2008 has been
aggressively conservative, allowing it to be better positioned
for the current slowdown.  Chrysler is clearly in a challenging
environment, but continue to be focused on building a profitable
enterprise for the long term.

Chrysler is committed to good business practices despite the
market slowdown such as reducing U.S. fleet sales (volume down
more than 20% YTD) and U.S. dealer inventory (volume is down
67,000 units from a year ago).

                        The State of Chrysler

As a private company, Chrysler is like a US$60 billion startup
with a real owner-operator mentality.  Despite the challenges,
the automaker is meeting or exceeding its financial targets.

According to CEO Bob Nardelli (in The Wall Street Journal),
"Cerberus nor its backers are second-guessing the deal.  They
are not looking back."

According to Tim Price, Cerberus spokesman, "We are comfortable.  
We are long-term investors.  Chrysler is ahead of its cash flow
forecast by $1 billion."

Chrysler currently have its top 300 leaders going through a
comprehensive leadership development program consisting of five
segments focusing on strategic thinking, operating excellence
and leadership.

Chryler is developing project-specific alliances to help bring
the world's best technology to its customers, as soon as
possible.  Examples range from working with Nissan on a new
small car for global markets to partnering with GM, Daimler and
BMW on hybrid technology.

Chrysler enacted a 5% cost reduction on certain non-production
materials and services as a part of ongoing efforts to reduce
its cost footprint in a highly competitive marketplace.

                      Chrysler's Sales in 2008

Worldwide sales are down 14% YTD, which includes YTD increases
in Canada, Mexico and International Markets.  Fleet sales in the
U.S. were down 40% in May.

Sales are rising for new products, such as Dodge Journey (2nd
best selling mid-size crossover in May), Dodge Avenger (+15%
YTD), Dodge Caliber (+9% YTD), Chrysler Sebring
Sedan/Convertible (+11% YTD), and Jeep Patriot/Compass (+65%
YTD).

Chrysler's long-wheelbase minivans' U.S. retail sales are up 30%
YTD, and retail share is up.

In Canada, Chrysler is the #2 best selling manufacturer in the
country, and up 5.5% YTD.

In Mexico, Chrysler’s sales are up 5.1% YTD.

Outside North America, Chrysler's international sales are up 8%
YTD, with markets like China and Russia becoming a larger part
of its business.

Dealers have embraced Project Genesis, and Chrysler is making
progress in transforming the U.S. dealer network.  Through May,
58% of its dealers are tri-branded, compared to 50% a year ago.  
In the U.S., Chrysler now has 3,488 dealers, down from a year
ago 3,684.

               Chrysler's Alignment with Marketplace

Chrysler is better aligned than previously for the shift towards
smaller, more fuel efficient vehicles.  The automaker also
believes there is a strong and viable pickup truck market going
forward.

Through May, Chrysler's U.S. sales were 41% pickup trucks and
traditional SUVs, and 59% cars, car-based crossovers, compact
vehicles and minivans.  (Industry is at 33%/67% ratio)

Chrysler has six vehicles that achieve 28 MPG on the highway:
Dodge Caliber, Dodge Avenger, Chrysler Sebring, Chrysler Sebring
Convertible, Jeep Patriot and Jeep Compass.

                  Chrysler's Launch Lineup for 2008

These new vehicles have competitive advantages and are well-
suited for today's marketplace:

   * Dodge Journey: A crossover with class–leading fuel economy
     (25 mpg) with a 4-cylinder engine.

   * Chrysler Aspen/Dodge Durango Hybrids: Full-size SUVs
offering
     up to 40% improved fuel economy in the city at a price
     thousands of dollars less than the competition.

   * 2009 Dodge Ram: There is no better way to fight truck buyer
     malaise than with Chrysler's best truck lineup ever
boasting
     breakthrough new features.  The new Dodge Ram lineup will
     also soon add optional light duty diesel and hybrid
     powertrain options.

   * Dodge Challenger: This modern muscle car will come with a
     fuel-efficient V6 option at an aggressive entry-level price
     of US$21,995.

           Harbour Report for Manufacturing Productivity

This year, Chrysler tied Toyota for #1 in manufacturing
productivity (avg assembly hours).

Chrysler has the #1 assembly plant (innovative
ToledoSupplierPark) and #1 engine plant (GEMA joint venture with
Hyundai and Mitsubishi).

The combination of lower hours-per-vehicle production and a more
competitive wage rate helps Chrysler compete with the
transplants.

                             Quality

In the latest J.D. Power IQS, the company improved six points,
and Chrysler and Dodge brands showed improvement.  
Unfortunately, the Jeep brand was last in the survey due to
concerns about the Wrangler Unlimited.

Dodge Durango and Dodge Dakota were tops in segments for least
problems per hundred.  Chrysler PT Cruiser took second place in
the "Compact Multi-Activity Vehicle Segment."

Chrysler has a corporate wide focus on the customer.  As part of
this, Chrysler has put in place the industry's first Chief
Customer Office, Doug Betts, and the Customer Advisory Board.

Chrysler LLC has approved more than 400 improvements in areas
such as better materials, fit and finish and quieter operation.

                         Commodity Prices

In the wake of mounting pressure from ever-increasing steel and
other commodity prices, Chrysler is managing its costs and
revenues to partially offset spiraling commodity costs.  

Chrysler will continue its overall commitment to deliver the
best values in the business through increasing standard
equipment with Chrysler's New Day packages to creative
incentives, such as the US$2.99 Gas Guarantee and our industry-
leading lifetime powertrain warranty.

At the beginning of the model year, Chrysler added, on average,
US$1,200 of new content to the vehicles in its lineup.

                   Advanced Technology Investments

Chrysler is in the midst of a US$3 billion investment in
advanced powertrains to develop new fuel efficient engines,
axles and transmissions.

ENVI is Chrysler's in-house organization charged with
establishing Chrysler leadership in electric-drive vehicles and
related advanced-propulsion technologies.

Chrysler's UConnect(R) is a Bluetooth(R) enabled voice-
activated, in-vehicle, hands-free communications system that
recognizes more than 100,000 words and is capable of learning
new words.  Voice commands can input addresses to the navigation
system, select satellite radio stations and access voice mail.  
New for 2009, the hands-free system automatically downloads up
to 1,000 phone book entries per phone.
Examples of new advanced technologies available on 2009 models
include:

   * In-vehicle wireless Internet connectivity: coming from
     Mopar(R) by year end 2008.

   * Rear Cross Path: Chrysler-exclusive system warns drivers of
     approaching traffic in the parking lot aisle during back-up
     maneuvers.

   * Blind Spot Monitoring: exclusive to Chrysler and Dodge in
     minivan segment.

                        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.


CHRYSLER LLC: S&P Places Ratings on Negative Watch
--------------------------------------------------
Standard & Poor's Ratings Services on Friday said it is placing
its corporate credit ratings on the three U.S. automakers,
General Motors Corp., Ford Motor Co., and Chrysler LLC, on
CreditWatch with negative implications, citing the need to
evaluate the  financial damage being inflicted by deteriorating
U.S. industry conditions -- largely as a result of high gasoline
prices.

Included in the CreditWatch placement are the finance units Ford
Motor Credit Co. and DaimlerChrysler Financial Services Americas
LLC, as well as GM's 49%-owned finance affiliate GMAC LLC.

"We have renewed concerns about all three automakers' future
cash outflows in light of the prospects for U.S. sales for the
rest of 2008 and into 2009," said Standard & Poor's credit
analyst Robert Schulz.  The erosion of demand for SUVs and
pickups has been particularly troubling.  Although these
segments have been weak for some time, the exodus of demand that
began in April, caused by escalating gas prices and consumer
preferences for smaller vehicles, is gathering speed.  Despite
concerted, and in some cases successful, efforts to bolster
their line-ups of smaller vehicles and reduce costs, all three
Michigan-based automakers still rely on light trucks for a
disproportionate share of profitability and cash flow.

The companies' difficulty in anticipating the pace of market
deterioration was reflected today in Ford's announcement that it
expects to use an even larger amount of cash this year and next
than it announced previously, its second negative guidance
revision in a month.  Ford plans to use more than US$16 billion
of cash between 2007 and 2009 in its automotive operations,
including the cost of employee separation programs, unless the
economy rebounds next year.  The company also said this year's
pretax results will be worse than last year's, announced further
light-truck production cuts and shift reductions, and delayed
this fall's launch of the F-150 pickup by two months to clear
existing inventory.  Also worrisome is the dire state of
the vehicle finance market. Ford said Friday it expects Ford
Motor Credit to report a pretax loss for the year (before any
infusion from Ford) caused by weak used (residual) values,
primarily for light trucks.

Although GM and Chrysler have not publicly detailed their
expectations for cash use, all of the factors behind Ford's
weaker guidance also apply to the other U.S.-based automakers.
In addition to weak sales and adverse product mix shifts, the
list of challenges also includes less receptive capital
markets, higher costs for steel and other raw materials, lower
residual values that hurt profitability at the finance units and
reduce consumers' trade-in power, and increasing cash needs for
restructuring efforts.

S&P believes all three companies currently have ample liquidity
for at least the rest of 2008 as measured by cash balances,
available bank facilities, and in some cases unencumbered
assets.  But S&P also believes deteriorating industry
fundamentals could reduce liquidity to undesirable levels by the
second half of 2009.

As part of S&P's reviews, S&P will assess all three companies'
strategies for addressing the weak sales and shifts in demand
away from light trucks and maintaining liquidity at satisfactory
levels through 2009.

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.


HIPOTECARIO SU: S&P Affirms Strong Ranking as Loan Servicer
-----------------------------------------------------------
Standard & Poor's Ratings Services has affirmed its STRONG
ranking on Hipotecaria Su Casita S.A. de C.V. as a residential
loan servicer for the Mexican mortgage market.  At the same
time, S&P assigned a STRONG ranking to the company as a
construction loan servicer for the Mexican market.  The outlook
for both rankings is stable.
     
The rankings are based on these strengths:

  -- A solid organizational structure with dedicated personnel
     for all critical servicing functions;

  -- A highly skilled and specialized staff;
     
  -- Comprehensive, well-documented, and frequently updated
     policies and procedures;
     
  -- Highly integrated, automated, flexible, and standardized
     servicing systems;
     
  -- Well-implemented contingency plans that guarantee business
     continuity and recovery under adverse conditions;
     
  -- Tight, robust internal controls that ensure that
     operational standards are met and that risk exposure
     remains under strict control;
     
  -- Effective collections and asset recovery procedures;
     
  -- Investor report comprehensiveness and flexibility;
     
  -- Proper cash management standards; and
     
  -- Superior customer service features.

                            Outlook
     
The outlook on the rankings is stable.  S&P expects Hipotecaria
Su Casita to continue growing under strict risk management
practices and continue investing in systems adequacy and
efficiency.  The company has proven to be committed to
continually improving operative standards and investing heavily
in technological and analytical support.  Additionally, the
company continues to operate under corporate governance
standards that are well above market averages.  S&P expects the
company to maintain these distinctive traits.
     
S&P views Hipotecaria Su Casita as a leader in the Mexican
housing finance and expects the company to be able to maintain
healthy portfolio quality indicators, even when facing more
aggressive market competition.  S&P also expects the company to
use caution if and when its exposure to riskier borrowers
increases and contain delinquencies should less-favorable
macroeconomic environments appear.  In addition, S&P expects the
company to show positive results in its workout and REO
departments in the short term, whereby the company will evidence
proactive loss mitigation strategies for both its on-balance
portfolio and its securitized pools.  S&P believes this will be
particularly relevant going forward, since these areas are key
aspects of proper servicing for securitizations.

                   About Hipotecaria Su Casita

Hipotecaria Su Casita, S.A. de C.V. (BMV: CASITA) is Mexico's
second largest specialized mortgage lending institution by
market share.  Its main function is to extend mortgage loans to
low-income individuals under the auspices of Sociedad
Hipotecaria Federal financing programs, and to provide
construction financing to developers of low-income housing.  It
controls approximately 18% of the mortgage market served by
Sofoles, based on total loan portfolio.  It has 107 offices in
Mexico.  Hipotecaria Su Casita was established in 1994.

As of June 2007, S&P raised its long-term counterparty credit
rating on Hipotecaria Su Casita S.A. de C.V. to 'BB' from 'BB-'
with a stable outlook.


INTERGEN NV: To Purchase Libramiento Facility for US$88.1 Mil.
--------------------------------------------------------------
InterGen N.V. and Conduit Capital Partners, LLC, have executed a
purchase agreement for Intergen to acquire the Libramiento
natural gas compression facility, located adjacent to the
company's Compresion Bajio Project in northern Mexico, and an
associated 65-kilometer natural gas pipeline.  InterGen will
acquire the project from Conduit Capital and its minority
partners including Green Energy and Infraestructura Para
Energia.

The Libramiento facility is fully contracted for 20 years with
Mexico's state-owned petroleum company, Petroleos Mexicanos
(Pemex).  The total value of the transaction is US$88.1 million,
and will be funded by a combination of InterGen equity and
limited-recourse debt.  The transaction is expected to close
later this summer upon approval by the Mexican authorities.

InterGen President and Cheif Executive Officer, Neil H. Smith
said, "We are pleased to be acquiring the Libramiento natural
gas compression and pipeline project as it is a strong
complement to our neighboring Compresion Bajio Project, and
because it will further expand our well-established Mexican
energy portfolio."

"This is another great example of Conduit's successful
investment strategy in Mexico,"  Conduit Capital Chairperson J.
Scott Swensen said.  "We became involved early with the
developer, Green Energy, during the pre-construction phase of
the project and contributed not only capital but also sector,
country, and management expertise.  There were several
significant challenges along the way -- including rights of way
issues and a tight construction schedule -- which we overcame by
working closely with Pemex, our local partners and various
Mexican government institutions.  Looking ahead, Mexico remains
one of our target markets, and we have several new projects in
development."

               About Conduit Capital Partners, LLC

Based in New York City, Conduit Capital Partners, LLC is a
private equity investment firm focused on the independent
electric power and energy industry in Latin America and the
Caribbean through its management of the Latin Power Funds.  
Latin Power I was the first private equity fund dedicated
exclusively to infrastructure investments.  The Funds have made
investments in Mexico, Chile, Peru, Brazil, Argentina, Colombia,
Jamaica, Honduras and Guatemala.  The company is presently
investing its US$393 million Latin Power III fund.

                        About InterGen

InterGen N.V.-- http://www.intergen.com-- is a global power  
generation firm with nine power plants representing an equity
share of 5,235 MW of production capacity.  The company's plants
are located in the U.K., the Netherlands, Mexico, the
Philippines and Australia.  Additionally, its 428 MW MaasStroom
Energie project, located in the Netherlands, is currently under
construction.  InterGen is jointly owned by the Ontario
Teachers' Pension Plan and AIG Highstar Capital II, L.P.

                       *      *      *

As reported in the Troubled Company Reporter-Europe on July 4,
2007, Standard & Poor's Ratings Services assigned its 'BB-'
corporate credit rating to InterGen N.V.  At the same time, S&P
assigned its preliminary 'BB-' rating to the company's US$1.975
billion multicurrency senior secured term notes.

TCR-Latin America reported on July 3, 2007, Moody's Investors
Service assigned a Ba3 rating to the US$1.975 billion senior
secured notes due 2017, US$800 million senior secured term loan
due 2014 and US$750 million senior secured credit facility due
2012, being issued by InterGen N.V.


MEXORO MINERALS: Publishes Press Release Clarification Statement
----------------------------------------------------------------
As a result of a review by the British Columbia Securities
Commission, Mexoro Minerals Ltd. is issuing these release to
clarify certain prior disclosures.  The information contained in
this release is intended to provide clarification of prior
disclosures.  However, the issuance of this release shall not be
deemed to be an admission that the original releases and filings
described herein, when made, included any untrue statement of
material fact or omitted to state a material fact necessary to
make a statement contained therein not misleading.

Mexoro Minerals Ltd. has retained Apex Geoscience Ltd. to
prepare a geological report pursuant to Canadian National
Instrument 43-101 (NI 43-101) that the company will file in
Canada for both its Cieneguita property and its Guazapares
property.  This work has been underway since Jan. 9, 2008 and is
expected to be finalized by June 2008.

The company is issuing this press release to clarify 1) certain
disclosures made by the previous management prior to February
2006, 2) a press release dated April 3, 2006, and 3) certain
subsequent disclosure.  Furthermore, the company has clarified
and retracted all non-compliant NI 43-101 disclosure on its
website and related documents.

   (i) In its Report on Form 10Q-SB for the period ending May
       31, 2004, it was disclosed that the company's Cieneguita
       Property contained reserves of 100,000 ounces of gold and
       that the company planned to put the Cieneguita property
       back into production at the rate of 20,000 ounces of gold
       per year.  The company did not file a technical report in
       Canada under NI 43-101 supporting these reserves,
       contrary to s.4.2(1) of NI 43-101, nor did it have a
       preliminary feasibility study establishing technical or
       economic recovery.  The disclosure of these reserves was
       contrary to NI 43-101 s.2.2, s.2.3(1) and s.3.4 because
       it failed to provide, among other things, accepted
       reserve categories, quantity, grade, key assumptions,
       parameters, and methodologies.   The company does not
       have any mineral resources or mineral reserves on its
       Cieneguita property that comply with NI 43-101.  The
       company retracts any of its previous statements which
       indicate that it has proven reserves disclosed in its
       filings prior to prior to October 2006.  Canadian
       residents should not rely upon any reports filed with the
       U.S. Securities and Exchange Commission by the company
       prior to October 2006 stating such facts.

  (ii) On April 3, 2006, the company issued a press release
       providing an update on its properties and stating, among
       other things, that it did have potential for 250,000
       ounces of gold reserves at its Cieneguita property.  The
       disclosure of these reserves was contrary to NI 43-101
       s.2.2, s.2.3(1) and s.3.4 because it failed to provide,
       among other things, accepted reserve categories,
       quantity, grade, key assumptions, parameters, and
       methodologies.  The company does not have any mineral
       resources or mineral reserves on its Cieneguita property
       that comply with NI 43-101.   The company retracts any of
       its previous statements which indicate that it has proven
       reserves and retracts its press release dated April 3,
       2006.  Canadian residents should not rely upon the
       information contained in this press release.

       The April 3, 2006 release also provided estimates on
       operations from the Cieneguita mine if it should be put
       back into production.  The company did not file a
       technical report in Canada under NI 43-101 supporting
       these estimates, contrary to s.4.2(1) of NI 43-101, nor
       did it have a preliminary feasibility study establishing
       technical or economic recovery.  

       The disclosure of these reserves was contrary to NI 43-
       101 s.2.2, s.2.3(1) and s.3.4 because it failed to
       provide, among other things, accepted reserve categories,
       quantity, grade, key assumptions, parameters, and
       methodologies.  The company does not have any mineral
       resources or mineral reserves on its Cieneguita property
       that comply with NI 43-101.  The company retracts any of
       its previous statements which estimate economical
       operations from the Cieneguita mine and retracts its
       press release dated April 3, 2006.  Canadian residents
       should not rely upon any reports filed with the SEC by
       the company prior to October 2006 stating such facts.

       The April 3, 2006 release also stated that the Guazapares
       has the potential to host over 500,000 ounces of gold and
       stated that the Encino Gordo property has structures that
       could host a multimillion ounce deposit.  The Guazapares
       and Encino Gordo estimates of potential are contrary to
       NI 43-101 and should not be relied on as indicators of
       future exploration potential.  The company retracts these
       previous statements which would indicate future
       exploration potential and retracts its press release
       dated April 3, 2006.  Also, Canadian residents should not
       rely upon the April 3, 2006 press release stating such
       facts.

(iii) On July 11, 2006, current management filed an amendment
       to its registration statement on Form SB with the SEC.
       This amended registration statement, which was declared
       effective on April 13, 2007, clearly stated that the
       company "has not found any proven or probable reserves
       ... " As well, in its report of Form 10QSB for the period
       ended Aug. 31, 2006, which was filed with the SEC on Oct.
       16, 2006, and in all subsequent reports on Form 10K-SB
       and Form 10Q-SB filed with the SEC, the company has
       clearly stated that it "has not found any proven or
       probable reserves ... " In the company's disclosure
       documents filed with the SEC on Form 8-K, in its
       corporate brochure, on its web site and in various press
       releases issued, the company does discuss estimated gold
       resources for the company's Cieneguita and Guazapares
       property.  The company did not file a technical report in
       Canada under NI 43-101 supporting this estimate contrary
       to s.4.2(1) of NI 43-101 nor did it file a preliminary
       feasibility study establishing technical or economic
       recovery.  The disclosure of these estimates was contrary
       to NI 43-101 s.2.2, s.2.3(1) and s.3.4 because it failed
       to provide, among other things, accepted reserve
       categories, quantity, grade, key assumptions, parameters,
       and methodologies.  The company does not have any mineral
       resources or mineral reserves on its Cieneguita property
       that comply with NI 43-101.  Canadian residents should
       not rely upon any of these estimates that have been
       provided by the company.

       In its latest report on Form 10Q-SB for the period ended
       Nov. 30, 2007, filed with the SEC on Jan. 14, 2008, the
       company provides an in depth discussion on its Cieneguita
       property and the proposal to put the property into
       production.  Under reporting requirements applicable in
       the United States, an important premise of a reporting
       company's "Management Discussion and Analysis or Plan of
       Operation" disclosures in quarterly and annual reports is
       to provide management's best estimates of the company's
       plans going forward.  The company also published
       estimates regarding its intention to put the Cieneguita
       property into production and its projected results from
       such an operation on Form 8K and in corporate press
       releases and corporate materials.  These estimates,
       qualified by safe harbor provisions in the company's
       disclaimer regarding forward looking statements included
       in its filings with the SEC and in its corporate
       material, were based on exploration work conducted by
       professional geologists working for the company,
       exploration work completed by former owners of the
       property, and public information published by other
       companies.  

       At this time, the company has not completed sufficient
       exploration and development to establish the economic
       viability of the Cieneguita property.  However, it is
       continuing to explore and develop the property with a
       view to determining its resource potential.  There is
       added risk of putting this property into production
       without mineral reserves, mineral resources or
       demonstrated economic viability based on a feasibility
       study compliant with NI 43-101.  Furthermore, the
       Safe Harbor disclaimer for forward-looking information is
       not a concept recognized in Canada and therefore does not
       apply in Canada.  This type of Safe Harbor disclosure
       does not relieve the company of any obligation it might
       have to comply with current NI 43-101 requirements in
       Canada.  As Mexoro Minerals has not filed a technical
       report that complies with NI 43-101, the company retracts
       its reference to estimated gold resources on all of its
       properties and therefore, residents of Canada should not
       rely upon these estimates and projections made by the
       company.

Furthermore, Mexoro Minerals' disclosure documents filed with
the SEC and corporate material published by the company and
posted on its web site, including previously issued press
releases, summarize drill results and exploration results by
reporting only the highest values or best values and use words
such as "up to" or "as high as".  This method of disclosure does
not meet the requirements with regard to disclosure of assay
results and should not be relied upon without reviewing all of
the data related to the sampling or drill results which it
refers to.  The company posts all of its exploration results,
including sampling and drilling details on its web site.

Prior to Dec. 12, 2007, the company's press releases available
to residents in Canada through various wire services did not
disclose the technical person who prepared or supervised the
preparation of the technical information that was reported.  
This type of disclosure does not comply with current NI 43-101
s.3.1.  Since March 1, 2007, Francisco Barry Quiroz, MSc., in
Economic Geology and is the Vice President of Exploration for
the company is the technical person who prepared or supervised
the preparation of the technical information that was reported
for all of its projects in Mexico.  While Mr. Quiroz is a member
in good standing of the Society of Economic Geologists and of
the Asociacion de Ingenieros Mineros, Metalurgistas y Geologos
de Mexico membership in such organizations is not recognized
under NI 43-101.  The disclosure of all the company's results
from its exploration work were prepared under the supervision of
Mr. Quiroz, MSc.  Contrary to earlier disclosure, the company
has not had a Qualified Person.

At the time Mexoro made its disclosure, it did not believe that
the requirements of Canadian NI 43-101 were applicable to it
because it is a Colorado company trading on an U.S exchange with
operations in Mexico, the majority of its shareholders are
located outside of Canada and all of its employees live and work
in Mexico.  Prior to October 2007, Mexoro did maintain a
corporate office in Vancouver, Canada and one or more of its
officers and directors resided in British Columbia, Canada.
Mexoro does however wish to comply with the highest level of
disclosure and have thereby commissioned the 43-101 report with
Apex Geoscience Ltd.

                       About Mexoro Minerals

Mexoro Minerals Ltd. (MXOM.OB) -- http://www.mexoro.com/-- is     
an exploration and production company focused on mining precious
metals in the traditionally mineral rich Sierra Madre region of
Chihuahua, Mexico.  Mining operations are through a 100%-owned
Mexican subsidiary, Sunburst de Mexico, S.A. de C.V.  Sunburst
Mexico owns or has options on three historical gold-silver mines
for which additional exploration has confirmed significant
mineral potential.  The company has also staked claims on
additional attractive properties, in the Chihuahua area.  

                          *     *      *

As reported in the Troubled Company Reporter-Latin America on
June 18, 2008, Mexoro Minerals Ltd., as of Feb. 29, 2008,
reported total assets US$857,671, total liabilities of
US$2,235,116, resulting in a stockholder's deficit of
US$1,377,445, the company's consolidated balance sheet filed
with the U.S. Securities and Exchange Commission reveals.  Its
balance sheet as of Feb. 28, 2007, showed a stockholder's equity
of US$269,492.


PILGRIM'S PRIDE: S&P Puts 'BB' Corp. Credit Under Negative Watch
----------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'BB-' corporate
credit ratings on Dean Foods Co. and Pilgrim's Pride Corp., and
'BBB-' corporate credit rating on Tyson Foods Inc. on
CreditWatch with negative implications.  S&P could affirm or
lower the ratings upon completion of its review.
     
The CreditWatch placement is the result of S&P's concerns that
in the near term these companies will be faced with even higher
commodity costs than S&P's previous expectations because heavy
rains and flooding in the Midwest damaged the crops, especially
the corn crop.
     
S&P's review will focus on the extent of the damage to crops,
the pressure this will create for further record grain prices
and the resulting effect that will have on dairy farmers, dairy
cattle supply and milk prices and the company's ability to
quickly pass these higher costs to its customers.  In addition,
S&P will discuss with management its plans to manage through
these difficult market conditions.
     
Dallas-based Dean Foods had rated debt of about $5.2 billion at
March 31, 2008.  Pittsburg, Texas-based Pilgrim's Pride had
rated debt of about US$2.1 billion at March 29, 2008.  
Springdale, Arkansas-based Tyson Foods had rated debt of
US$3.2 billion at March 29, 2008.

Headquartered in Pittsburgh, Texas, Pilgrim's Pride Corporation
(NYSE: PPC) -- http://www.pilgrimspride.com/-- produces,
distributes and markets poultry processed products through
retailers, foodservice distributors and restaurants in the U.S.,
Mexico and in Puerto Rico.  Pilgrim's Pride employs about 40,000
people and has major operations in Texas, Alabama, Arkansas,
Georgia, Kentucky, Louisiana, North Carolina, Pennsylvania,
Tennessee, Virginia, West Virginia, Mexico and Puerto Rico, with
other facilities in Arizona, Florida, Iowa, Mississippi and
Utah.  Sales for the twelve months ended Dec. 29, 2007 exceeded
US$8.3 billion.


STEVE & BARRY'S: To Go Bankrupt if US$30MM Funding Search Fails
---------------------------------------------------------------
Steve & Barry's LLC is said to be on the brink of bankruptcy and
is in search for a rescue financing of about US$30 million, The
Wall Street Journal relates.

The retailer has been approaching a number of financing
resources to fund its operations for the rest of the year, WSJ
notes.

According to WSJ, without additional capital, the company's fate
will be determined by the commercial-lending unit of General
Electric Co.  GE provided the company with a roughly
US$200 million credit facility in March, and the company is
already in default on that loan, WSJ says according to three
people familiar with the matter.

WSJ, citing several creditors, bankruptcy lawyers and retail
experts familiar with the matter, says that if the company is
unable to secure backing, it could seek protection from
creditors sometime in July.

WSJ states that Steve & Barry's is the latest retail player hurt
by the economic downturn, and its demise would be a big blow to
struggling mall owners.  

According to WSJ, Steve & Barry's has hired Goldman Sachs Group
Inc. to seek out financing and hired a bankruptcy lawyer to
advise it on a restructuring.

                    About Steve and Barry LLC

Headquartered in Port Washington, New york, Steve and Barry LLC
-- http://www.steveandbarrys.com/-- sells every item in its  
stores for US$19.99 or less, operates more than 250 shops in
about 40 states nationwide.  Stores range from 50,000 to over
100,000 sq. ft.  The firm buys its merchandise (T-shirts,
button-down shirts, varsity jackets, sweatpants, tank tops,
backpacks) from vendors in the US, Canada, Central America,
India, Mexico, and Pakistan.



===========
P A N A M A
===========

IAP WORLDWIDE: S&P Lifts Ratings and Says Outlook is Developing
---------------------------------------------------------------
Standard & Poor's Ratings Services raised its ratings on IAP
Worldwide Services Inc., including raising the corporate credit
rating to 'CCC+' from 'CC', and removed all ratings from
CreditWatch with negative implications.  Ratings were originally
placed on CreditWatch on Aug. 10, 2007, and subsequently lowered
and maintained on CreditWatch on Jan. 8, 2008.

At the same time, S&P revised the recovery rating on IAP's
first-lien facilities to '3', indicating expectations of
meaningful recovery (50%-70%) in the event of a payment default,
from '2'.  As a result, the company's first-lien facilities are
rated in line with the corporate credit rating at 'CCC+'. The
outlook is developing.

"The upgrade reflects the company's successful completion of a
debt restructuring, which mitigates the risk of a default in the
near term," said Standard & Poor's credit analyst Dan Picciotto.  
The resolution included an equity contribution by owner Cerberus
Capital L.P. that was used to pay down debt.  The company will
benefit from lower cash interest obligations.  However,
IAP remains highly leveraged and weakness in operating
performance could pressure covenants or affect its ability to
meet financial obligations.

The ratings on IAP reflect the company's highly leveraged
financial risk profile and vulnerable business risk profile,
marked by revenue concentration from large contracts and the
less-predictable nature of contingency operations, which
significantly contribute to revenue and profit.  These
weaknesses are partially mitigated by the company's good rebid
record on contracts and the low fixed-capital intensiveness of
operations.

IAP is a provider of contingency operations, facilities
management, and technical services to the U.S. military and
civilian government agencies.  The company's largest operating
segment is global operations and logistics, which provides about
60% of revenues.  This segment includes power generation,
emergency disaster relief, transport operations, and other
services in the U.S. and overseas.  The facilities management
segment, meanwhile, contributes roughly one-quarter of the
company's revenues.  Through this segment, the company maintains
domestic and overseas U.S. military bases.  The professional
and technical services segment provides temporary staff support
services to the federal civilian agencies and accounts for the
remainder of the company's
revenue base.

If operating performance stabilizes and the company demonstrates
it can maintain adequate liquidity, S&P could raise the ratings.

S&P could lower the ratings if the company breaches a financial
covenant or if its operating performance and financial leverage
fail to improve.

IAP Worldwide Services -– http://www.iapws.com/-- is a  
government contractor providing global mission support for the
Department of Defense and other U.S. government agencies.  IAP,
which is privately held, traces its roots back 50 years ago to
Pan Am World Services, Inc., which built and operated America’s
first space launch complex at Cape Canaveral, Fla.

IAP specializes in four lines of business: global operations and
logistics; facilities management and base operations support;
professional and technical services; and energy and natural
resource services. IAP’s corporate headquarters are located in
Cape Canaveral, and the company has project sites in over 100
locations worldwide.  The also has offices in Panama and the
United Kingdom.



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

FREEPORT-MCMORAN: Reaches Deal With Striking Peru Miners
--------------------------------------------------------
Union General Secretary Leoncio Amudio disclosed that Freeport-
McMoRan Copper & Gold Inc.'s Peruvian copper mine workers has
reached an accord with the company ending an 11-day strike, Alex
Emery of Bloomberg News reports.

The union has been in talks with the company to develop working
conditions and reinstate fired workers, Mr. Amudio added.  About
900 workers protested at Cerro Verde, Peru's third-largest
copper mine on June 10, Bloomberg relates.

According to Bloomberg, Mr. Amudio said the company now has two
weeks to solve the pending problems.

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.

                         *     *     *

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

NUTRITIONAL SOURCING: Wants Exclusive Plan Filing Moved
-------------------------------------------------------
Nutritional Sourcing Corporation and its debtor-affiliates ask
the United States Bankruptcy Court for the District of Delaware
to further extend their exclusive periods to:

   a) file a Chapter 11 plan until Aug. 15, 2008, and

   b) solicit acceptances of that plan until Dec. 6, 2008.

The Debtors' exclusive period to file a Chapter 11 plan will
expire on July 7, 2008.

The Debtors say that the requested extension of time will allow
them to file a consensual Chapter 11 plan of liquidation and, to
the extent possible, complete the sale of their largest
remaining assets, Blockbuster Inc. franchise and its attendant
real property leases.

To recall, the Debtors have completed the sale of substantially
all their Pueblo's De Diego Assets to Supermercados Maximo Inc.
for US$29,500,000.  The sale is expected to close within this
month.

The Debtors tell the Court that they provided on Feb. 5, 2008,
to the Official Committee of Unsecured Creditors an initial
draft of the plan, as amended on May 7, 2008.  The Committee
notified the Debtors that it needs more time to evaluate the
Debtors' amended
plan term sheet.

A hearing is set for July 1, 2008,at 2:00 p.m., to consider the
Debtors' extension request.  Objections, if any, are due June
24, 2008.

                   About Nutritional Sourcing

Based in Pompano, Florida, Nutritional Sourcing Corp., fdba
Pueblo Xtra International, Inc. -- http://www.puebloxtra.com/--  
owns and operates supermarkets and video rental shops in Puerto
Rico and the U.S. Virgin Islands.  The company and two
affiliates, Pueblo International, L.L.C., and F.L.B.N., L.L.C.,
filed for chapter 11 protection on Aug. 3, 2007 (Bankr. D. Del.
Case Nos. 07-11038 through 07-11040).  Kay Scholer LLC
represents the Debtors in their restructuring efforts.  Pepper
Hamilton LLP serves as their Delaware counsel.  The U.S. Trustee
for Region 3 appointed eight creditors to serve on an Official
Committee of Unsecured Creditors.  Skadden, Arps, Slate, Meagher
& Flom LLP represent the Official Committee of Unsecured
Creditors.  The company has disclosed US$130.8 million in assets
and debt totaling US$266.5 million with the Court.


TOWER BONDING: A.M. Best Holds BB Credit Rating, Neg. Outlook
-------------------------------------------------------------
A.M. Best Co. has revised the outlook to negative from stable
and affirmed the financial strength rating of B and issuer
credit rating of "bb" of Tower Bonding and Surety Company Inc.

The revisied outlook is based on the decline in Tower Bonding's
overall risk-adjusted capital as a result of rapid premium
expansion.  In addition, Tower Bonding maintains an elevated
underwriting expense ratio driven by salaries and commission
expense, which diminish profit and surplus appreciation.
Management infused capital into the company in 2007, and
favorable first quarter results have improved Tower Bonding's
risk-adjusted capitalization.  

However, A.M. Best remains concerned with the level of premium
increase as well as the company's geographic concentration,
which exposes it to judicial, regulatory and economical
concerns.  Furthermore, the local insurance industry is very
competitive as local insurers challenge each other for market
share.

These positive rating factors are based on Tower Bonding's
underwriting performance and favorable reserve development.  The
company maintains prudent risk selection, consistent net
underwriting income and historically favorable investment
income.  As a result, pre-tax operating returns on revenue and
equity have been favorable.  Tower Bonding's surety book of
business has performed well, and its five-year average pure loss
ratio compares favorably to the professional fidelity and surety
writers industry composite.

Tower Bonding and Surety Company Inc. is a Property/Casualty
insurance firm headquartered in San Juan, Puerto Rico.  The
company reported US$3,670,636 assets, US$2,255,415 liabilities
and US$3,950,458 direct premiums written for the year ending
Dec. 31, 2007.



=================
V E N E Z U E L A
=================

PETROLEOS DE VENEZUELA: To Invest US$15.7 Billion on 88 Projects
----------------------------------------------------------------
Petroleos de Venezuela S.A. will spend about US$15.7 billion on
88 projects this year, Nathan Crooks at Business News Americas
reports.

BNamericas relates that Venezuelan Oil Minister and Petroleos de
Venezuela's President Rafael Ramirez presented an "aggressive"
growth plan called Siembra Petrolera during a speech at the LAPS
2008 oil conference in Maracaibo.  Minister Ramirez said that
Siembra Petrolera is aimed at boosting output.  According to
him, Siembra Petrolera is progressing as planned and Venezuela's
production will be 3.6 million barrels per day next year and
4.8 million barrels per day in 2013.  "These aren't estimations.  
These are exact figures," the minister added.  Minister Ramirez
presented various plans to:

   -- expand Venezuela's natural gas pipeline infrastructure;

   -- develop liquefied natural gas plants;

   -- construct new crude upgraders in the Orinoco heavy crude
      belt;

   -- form new joint ventures with private and state firms; and

   -- increase offshore drilling.

According to BNamericas, Petroleos de Venezuela will invest
about US$130 million  through 2013 in wide-ranging projects.  
Petroleos de Venezuela will spend US$19.7 billion on three new
heavy crude upgraders, which will operate in the Carabobo block
in the Orinoco.  The firm will also spend US$13.1 billion on two
new upgraders on the Junin block.  Minister Ramirez said the
Carabobo upgrades will start running in 2013, 2014, and 2017.  
The Junin upgraders will start to operate in 2014 and 2017, the
minister added.  The upgraders will boost output from the
Orinoco belt to 2.9 million barrels per day by 2021.

BNamericas notes that Minister Ramirez said, "National firms are
welcome to invest in the projects, but if they don't, PDVSA
[Petroleos de Venezuela] will do it without them."


The report says that Venezuela imports 60% of the goods and
services used by the industry.  "We want to reduce the rate of
imported goods and services to 26% by 2015.  The government is
willing to work with private firms to develop Venezuela's
domestic oil services industry," Minister Ramirez said.

Petroleos de Venezuela S.A. -- http://www.pdvsa.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.

                       *     *     *

In March 2007, Standard & Poor's Ratings Services assigned its
'BB-' senior unsecured long-term credit rating to Petroleos de
Venezuela S.A.'s US$2 billion notes due 2017, US$2 billion notes
due 2027, and US$1 billion notes due 2037.

Also in March 2007, Fitch Ratings gave a BB- rating to PdVSA's
Senior Unsecured debt.  

On Feb. 7, 2007, Moody's Investors Service affirmed the
company's B1 global local currency rating.


PETROLEOS DE VENEZUELA: Chief to Attend Saudi Arabia Oil Meeting
----------------------------------------------------------------
Venezuelan Oil Minister and Petroleos de Venezuela S.A'.s
President Rafael Ramirez will attend Saudi Arabia's meeting of
oil consumers and producers, Reuters reports, citing an energy
ministry official.

As reported in the Troubled Company Reporter-Latin America on
June 23, 2008, Minister Ramirez said that the Venezuelan
government wouldn't attend the meeting, which will be held on
Sunday.  Saudi Arabia organized the meeting to talk about oil
prices.  Minister Ramirez had said that the country doesn't have
to increase oil production as the price level isn't related to
insufficient supply.  Any discussion on the Organization of the
Petroleum Exporting Countries production should be discussed at
the organization's next meeting in September 2008, the minister
added.

However, according to Reuters, the ministry official has
confirmed Minister Ramirez's attendance in the meeting.

Petroleos de Venezuela S.A. -- http://www.pdvsa.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.

                       *     *     *

In March 2007, Standard & Poor's Ratings Services assigned its
'BB-' senior unsecured long-term credit rating to Petroleos de
Venezuela S.A.'s US$2 billion notes due 2017, US$2 billion notes
due 2027, and US$1 billion notes due 2037.

Also in March 2007, Fitch Ratings gave a BB- rating to PdVSA's
Senior Unsecured debt.  

On Feb. 7, 2007, Moody's Investors Service affirmed the
company's B1 global local currency rating.


PETROLEOS DE VENEZUELA: South Korea May Help Develop Orinoco
------------------------------------------------------------
South Korea officials discussed the possibility of entering into
a venture with Petroleos de Venezuela S.A. to develop reserves
in the Orinoco Belt, Shinhye Kang of Bloomberg News reports,
citing the Asian country's Ministry of Knowledge Economy.

Bloomberg relates that South Korea's Trade and Energy Vice
Minister Lee Jae Hoon had visited Venezuela from June 19-21.  
The country is seeking to own oil and gas fields as crude prices
keep increasing.  Venezuela has large proven crude-oil reserves.  
Other nations are also participating in Venezuela's Orinoco
project "to quantify and certify reserves" in the region.

A South Korean consortium led by Korea National Oil Corp. may
bid to develop two Orinoco areas, Carabobo 1 and 4.  South Korea
and Venezuela agreed to enter into a preliminary agreement in
the second half of this year to cooperate on natural gas
extraction and to discuss the need for joint oil reserves.

Petroleos de Venezuela S.A. -- http://www.pdvsa.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.

                        *     *     *

In March 2007, Standard & Poor's Ratings Services assigned its
'BB-' senior unsecured long-term credit rating to Petroleos de
Venezuela S.A.'s US$2 billion notes due 2017, US$2 billion notes
due 2027, and US$1 billion notes due 2037.

Also in March 2007, Fitch Ratings gave a BB- rating to PdVSA's
Senior Unsecured debt.

On Feb. 7, 2007, Moody's Investors Service affirmed the
company's B1 global local currency rating.



* Large Companies With Insolvent Balance Sheet
----------------------------------------------

                                      Total
                                   Shareholders     Total
                                      Equity       Assets
  Company               Ticker        (US$MM)     (US$MM)
  -------               ------    ------------    -------
Arthur Lange             ARLA3       (24.32)        34.09
Kuala                    ARTE3       (33.57)        11.86
Bombril                  BOBR3      (480.75)       423.86
Caf Brasilia             CAFE3      (949.47)        40.58
Chiarelli SA             CCHI3       (73.37)        44.84
Ceper-Inv                CEP          (7.77)       120.08
Ceper-B                  CEP/B        (7.77)       120.08
Telefonica Hldg          CITI     (1,481.31)       307.89
Telefonica Hldg          CITI5    (1,481.31)       307.89
SOC Comercial PL         COME       (751.50)       450.17
Marambaia                CTPC3        (1.38)        79.73
DTCOM-DIR To Co          DTCY3       (13.89)        13.03
Aco Altona               ESTR        (41.68)       144.91
Estrela SA               ESTR3       (68.40)       112.36
Bombril Holding          FPXE3    (1,064.31)        41.97
Fabrica Renaux           FTRX3       (40.90)       127.74
Cimob Partic SA          GAFP3       (56.35)        92.77
Gazola                   GAZ03       (43.13)        22.28
Haga                     HAGA3      (116.89)        20.31
Hercules                 HETA3      (240.65)        37.34
Doc Imbituba             IMB13       (20.49)       209.80
IMPSAT Fiber Networks    IMPTQ       (17.17)       535.01
Minupar                  MNPR3       (27.58)       158.43
Wetzel SA                MWET3       (15.02)       137.09
Nova America SA          NOVA3      (300.97)        41.80
Paranapamema SA          PMAM3      (105.13)     3,724.69
Paranapamema-PRF         PMAM4      (105.13)     3,724.69
Recrusul                 RCSL3       (67.90)        27.89
Telebras-CM RCPT         RCTB30     (171.66)       230.92
Rimet                    REEM3      (219.34)        93.47
Schlosser                SCL03       (84.39)        44.57
Tecel S Jose             SJ0S3       (26.86)        80.42
Sansuy                   SNSY3       (63.13)       235.18
Teka                     TEKA3      (347.07)       538.30
Telebras SA              TELB3      (171.66)       230.92
Telebras-CM RCPT         TELE31     (171.66)       230.92
Telebras SA              TLBRON     (171.66)       230.92
TECTOY                   TOYB3        (1.43)        39.50
TEC TOY SA-PREF          TOYB5        (1.43)        39.50
TEC TOY SA-PF B          TOYB6        (1.43)        39.50
TECTOY SA                TOYBON       (1.43)        39.50
Texteis Renaux           TXRX3      (118.94)        84.92
Varig SA                 VAGV3    (8,194.58)     2,169.10
FER C Atlant             VSPT3      (123.44)     2,012.29
Wiest                    WISA3      (140.97)        71.37


                            ***********


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
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