TCRLA_Public/080704.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

              Friday, July 4, 2008, Vol. 9, No. 132

                            Headlines


A R G E N T I N A

AVAYA INC: Weaker Business Conditions Cue S&P's Negative Outlook
DDIM SRL: Trustee to File Individual Reports in Court on Monday
FORD MOTOR: June 2008 Sales Fall 28% to 174,091 Units
HUNTSMAN CORP: Board OKs Oct. 2 Extension of Hexion Merger Deal
IMPOMOTOR SA: Trustee to File Individual Reports on Monday

GRAHAM PACKAGING: Inks US$3B Merger Contract With Hicks Purchase
GRAHAM PACKAGING: Fitch Ratings Unaffected by Merger with Hicks
MARIO CORDANI: Trustee to Present General Report on Monday
TENNECO INC: Fitch Holds Ratings and Revises Outlook to Stable
YACOPLAST SA: Creditors to Vote on Settlement Plan Today


B A H A M A S

MESA AIR GROUP: Earns US$17.5 Mil. in 2nd Quarter Ended March 31
MESA AIR: In Discussions with Delta Regarding Flying Contract


B E R M U D A

CATALINA ASSURANCE: Proofs of Claim Filing Deadline Is July 30
DIGICEL LTD: Reports 39% Subscriber Growth in FY Ended March 31
EAGLE SYSTEMS: Proofs of Claim Filing Deadline Is July 30
EAGLE SYSTEMS: Sets Final Shareholders Meeting for Aug. 5
LOCKSHIELD LTD: Proofs of Claim Filing Deadline Is July 16

LOCKSHIELD LTD: Sets Final Shareholders Meeting for Aug. 7


B O L I V I A

VISTA GOLD: Expects Development Timetable on Paredones Amarillos


B R A Z I L

AMR CORP: To Cut 6,840 Jobs, Write Down US$1BB Impairment Charge
BANCO NACIONAL: Grants BRL539.7 Mil. Loan for Siderurgica Barra
BRASKEM SA: Posts BRL547.6MM Consolidated Net Income in 2007
CENTRAIS ELETRICAS: To be Major Shareholder in 3 Nuclear Plants
FIDELITY NAT'L: LPS Spin-Off Cues Moody's to Confirm Ba1 Ratings

FIDELITY NAT'L: S&P Lifts Corporate Credit Rating to BB+ From BB
GENERAL MOTORS: Bankruptcy 'Not Impossible,' Merrill Lynch Says
GOL LINHAS AEREAS: Provides Updates to Investors
HEXION SPECIALTY: Huntsman Wants Merger Deal Extended to Oct. 2
ZIM CORP: Grant Thornton Expresses Going Concern Doubt


C A Y M A N  I S L A N D S

DENALI CAPITAL: Deadline for Proofs of Claim Filing Is July 9
FOCUS CAPITAL: Proofs of Claim Filing Deadline Is July 9
FOCUS CAPITAL INVESTORS: Claim Filing Deadline Is July 9
INFOR CAYMAN SUBCO: Deadline for Claims Filing Is Until July 9
INFOR INTERNATIONAL: Claim Filing Deadline Is Until July 9

INFOR LIMITED: Deadline for Proofs of Claim Filing Is July 9
NVIDIA CORP: Lower Sales Forecast Spurs 20% Share Price Plunge
PEGASUS FINANCE: Proofs of Claim Filing Deadline Is July 9
PEGASUS FINANCE: To Hold Final Shareholders Meeting on July 9
PREMIER AIRCRAFT: Proofs of Claim Filing Deadline Is July 9

REGULUS REAL ESTATE: Claim Filing Deadline Is Until July 9
REGULUS REAL ESTATE: Sets Final Shareholders Meeting on July 9
REGULUS REAL ESTATE CORP: Claim Filing Deadline Is on July 9
REGULUS REAL ESTATE CORP: Final Shareholders Meeting Is July 9
SADUF FIVE: Deadline for Proofs of Claim Filing Is July 9

SADUF SIX: Proofs of Claim Filing Deadline Is Until July 9
TOKYO CRIMSON: Will Hold Final Shareholders Meeting on July 9


D O M I N I C A N   R E P U B L I C

BANCO INTERCONTINENTAL: Appeal Process Almost Complete


G U A T E M A L A

BRITISH AIRWAYS: Inks GBP54 Mln Deal to Acquire France's L'Avion   


J A M A I C A

AIR JAMAICA: Minister Names 4 Board Members to Remain in Airline
AIR JAMAICA: May Help Prevent Crisis in Jamaica
AIR JAMAICA: Government to Keep 20% Stake in Airline


M E X I C O

CARDTRONICS INC: Denies Any Involvement in ATM-Hacking Case
GRAFTECH INT'L: 19% Seadrift Deal Won't Affect S&P's Ratings
GRUPO POSADAS: S&P Affirms BB Long-Term Corporate Credit Rating
GRUPO TMM: Issues 3rd Tranche of 20-Yr Trust Certificates
EMPRESAS ICA: Inks MXN1.475 Billion Construction Deal

KRISPY KREME: MGL Asset Deal Has No Impact on S&P's Ratings Yet
MANITOWOC CO: S&P's 'BB' Rtg Unmoved by US$2.7B Enodis Bid Raise
OCEANOGRAFIA SA: Fitch Assigns B Foreign & Local Curr. IDRs
SMURFIT-STONE: Fitch Holds 'B+' ID Rating with Negative Outlook
VITRO SAB: Court Ratifies Decision on Pilkington's Opposition


P E R U

BUNGE LTD: Acquires Tate & Lyle Sugar Trading & Marketing Units


P U E R T O  R I C O

ANGIOTECH PHARMA: Moody's May Lower B3 Rating After Review
DORAL FINANCIAL: Research Oracle Upgrades Common Stock to Buy


U R U G U A Y

FABRICA NACIONAL: Moody's Reviews B1/A3 Ratings for Upgrade


V E N E Z U E L A

CITGO PETROLEUM: Will Shut Down Lake Charles Plant This Year
NORTHWEST AIRLINES: Cuts Int'l Flights Due to High Fuel Prices
NORTHWEST: CEO Urges Congress to Close Trading Loopholes  
PETROLEOS DE VENEZUELA: Profit Rises to US$3.45BB in 1st Quarter
PETROLEOS DE VENEZUELA: Wants Stake in Indian Oil's Plant

PETROLEOS DE VENEZUELA: May Sell NatGas to Petrobras in 2013
PETROLEOS DE VENEZUELA: Will Create Firm With Petroecuador


                         - - - - -


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

AVAYA INC: Weaker Business Conditions Cue S&P's Negative Outlook
----------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on
Basking Ridge, New Jersey-based Avaya to negative from stable,
reflecting recently weaker business conditions, lower
profitability and rising leverage.  The 'B' corporate credit
rating and senior bank loan ratings remains unchanged, as does
the 'B-' rating on the company's unsecured notes, as well as the
'3' recovery rating on the bank loan, indicating meaningful
( 50%-70%) expectation of recovery; and '5' recovery rating on
the unsecured notes, indicating modest (10%-30%) expectation of
recovery.
     
"The ratings on Avaya Inc. reflect its leveraged balance sheet
and significant competitive pressures, which more than offset
its solid position in the enterprise voice communications
industry, and a good base of recurring maintenance revenues,"
said Standard & Poor's credit analyst Bruce Hyman.  Avaya is a
major supplier of voice communications equipment for enterprise
customers, competing against Cisco Systems Inc., Nortel Networks
Corp., Siemens AG, Alcatel Lucent, and others.

Avaya's revenues totaled about US$5.3 billion in the fiscal year
ended Sept. 30, 2007.  While Avaya's good position as a leading
supplier in its industry continues, business conditions peaked
in the September 2007 quarter, and have weakened since then.  
Industry sources report that overall line shipments in the U.S.
in the March 2008 quarter were at the lowest level in three
years, and were down 12% year over year; additionally,
competitor Cisco Systems Inc. has gained market share from
Avaya.  Industry volumes correlate closely with economic cycles,
and S&P believe there is a significant possibility that weak
market conditions will persist for several quarters.

Headquartered in Basking Ridge, New Jersey, Avaya Inc. (NYSE:
AV) -- http://www.avaya.com/-- designs, builds and manages
communications networks for more than one million businesses
worldwide, including more than 90% of the FORTUNE 500(R).  Avaya
is a world leader in secure and reliable Internet Protocol
telephony systems and communications software applications and
services.

Avaya has locations in Malaysia, Argentina and the United
Kingdom.


DDIM SRL: Trustee to File Individual Reports in Court on Monday
---------------------------------------------------------------
Elsa A. Etchegaray Pena, the court-appointed trustee for Ddim
S.R.L.'s bankruptcy proceeding, will present the validated
claims as individual reports in the National Commercial
Court of First Instance in Mar del Plata, Buenos Aires, on
July 7, 2008.

Ms. Pena verified creditors' proofs of claim until May 26, 2008.  
Ms. Pena will submit to court a general report containing an
audit of Ddim's accounting and banking records on Aug. 19, 2008.

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

The debtor can be reached at:

           Ddim S.R.L.
           Aragon 8867, Mar del Plata
           Buenos Aires, Argentina

The trustee can be reached at:

           Elsa A. Etchegaray Pena
           Avenida Luro 3894, Mar del Plata
           Buenos Aires, Argentina


FORD MOTOR: June 2008 Sales Fall 28% to 174,091 Units
-----------------------------------------------------
Total Ford Motor Company sales in June 2008 is down 28% to
174,091 units, compared to last year's June sales of 242,029.

In the first half of 2008, sales of Ford, Lincoln and Mercury
cars and crossovers to retail customers were higher than a year
ago.  Retail sales for cars increased 3% and crossovers also
were up (less than 1%).  Together, cars and crossovers accounted
for 59% of Ford's first half retail sales compared with 49% in
the first half 2007.

"In the first half, Ford outperformed the industry in both the
car and crossover segments," Jim Farley, Ford group vice
president, Marketing and Communications, said.  "This
performance is crucial to creating an exciting viable Ford
delivering profitable growth for all."

Ford's new Focus paced the increase in car sales.  In the first
half, Focus retail sales increased 53% versus a year ago, and
Focus was the top-selling domestic car to retail customers.  In
the recently released J.D. Power and Associates' 2008 APEAL
study, the Focus improved 88 index points -- the largest
improvement in the industry.

Mid-size cars also posted retail sales increases in the first
half with Ford Fusion up 7%, Mercury Milan up 2% and Lincoln MKZ
up 10%.

The Ford Edge paced crossovers with first half retail sales up
19%.

Gasoline prices increased a dollar (from US$3 to US$4 a gallon)
during the first half and this accelerated the decline in SUV
and truck sales.  In the first half, retail sales for the
company's SUVs declined 40% versus a year ago and retail sales
for trucks and vans declined 31%.

First half fleet sales declined 11% (including a 20% decline in
daily rental sales).

Overall, June sales of Ford, Lincoln and Mercury vehicles
totaled 167,090, down 28% versus a year ago.  First half sales
totaled 1.1 million, down 14%.

"Consumer fundamentals and consumer confidence deteriorated as
the first half unfolded," Mr. Farley said.  "The economy enters
the second half of the year with a notable absence of momentum
and a high degree of uncertainty."  "Clearly, the rapid rise in
gasoline prices, and the resulting shift toward fuel efficient
vehicles, has been challenging, but it also provides an
opportunity.  "In addition to adjusting our capacity and
production plans to produce more cars and crossovers, we are
introducing several new vehicles with class-leading fuel
economy."

In June, Ford introduced a new crossover, the Flex, with best-
in-class highway fuel economy of 24 miles per gallon and Lincoln
introduced the MKS.  In 2009, the MKS will be the first vehicle
equipped with Ford's new EcoBoost engine technology.

The 2009 model Ford Escape and Mercury Mariner started
production in June.  Equipped with a new 2.5-liter four-cylinder
engine and six-speed transmission, the Escape and Mariner
deliver best-in-class fuel economy in the small utility segment
with 28 highway miles per gallon.  The Escape and Mariner Hybrid
remains the most fuel-efficient utility vehicle on the planet,
delivering 34 city mpg and improved highway rating of 31 mpg –
up from 30 mpg.

Later this year, production of the redesigned Ford Fusion,
Mercury Milan and Lincoln MKZ will begin, including new Fusion
Hybrid and Milan Hybrid versions.

In addition, Ford has announced plans to bring the European
Transit Connect to North America in 2009 -– the most fuel-
efficient commercial van on the market.

                         About Ford

Ford Motor Company (NYSE: F) -– http://www.ford.com/-- a global
automotive industry leader based in Dearborn, Mich.,
manufactures or distributes automobiles in 200 markets across
six continents.  With about 244,000 employees and about 90
plants worldwide, the company's core and affiliated automotive
brands include Ford, Lincoln, Mercury, Volvo 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.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 24, 2008, 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.

At the same time, TCR-LA reported that 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.


HUNTSMAN CORP: Board OKs Oct. 2 Extension of Hexion Merger Deal
---------------------------------------------------------------
Huntsman Corporation's board of directors, unanimously,
provisionally authorized the company to exercise Huntsman's
right to extend the merger agreement with Hexion Specialty
Chemicals Inc. by an additional ninety days to Oct. 2, 2008, as
permitted by the terms of the merger agreement.  Huntsman
expects to deliver a formal notice of the extension to Hexion on
July 4, 2008.

Huntsman also filed its answer and counterclaims to the Hexion
suit in Delaware and has asked the court to expedite the
proceedings, including by granting expedited discovery and
trial.

Huntsman asked the Delaware court to declare that the premature
and inappropriately released Duff & Phelps opinion does not
excuse Hexion from its obligations, that it will in fact be
possible to provide Hexion's lenders with assurance of solvency,
and to declare that no material adverse effect has occurred
under the merger agreement.  Huntsman asked the court to enjoin
Hexion from continuing to breach the merger agreement and to
order Hexion to specifically perform its obligations under the
merger agreement.

The counterclaims made by Huntsman in the filing include breach
of contract, breach of good faith and fair dealing, defamation,
injurious falsehood, and commercial disparagement, among others.

"After actively evaluating the situation, our board has
concluded that if Apollo Management L.P causes Hexion to honor
its contractual obligations, Hexion will obtain the antitrust
approvals and the merger can and will close by Oct. 2, 2008,"
Peter Huntsman, president and CEO, stated.  "Apollo and Hexion
continue to assert their ongoing intention that Hexion will do
the work necessary to complete the transaction, and we are
asking the Delaware court to make those more than hollow words."

"I have been deeply disappointed in the actions of Leon Black
and Josh Harris these past two weeks," Jon M. Huntsman, founder
and chairman of Huntsman Corporation, added.  

However, I believe, as does the rest of our board, that all of
the conditions to closing this merger can and will be satisfied,
and that the conditions to Hexion's commitment letter with its
lenders can and will be satisfied as well," Mr. Huntsman stated.  
"As I have said repeatedly, we will take every available action
on behalf of our shareholders to cause Hexion to live up to the
merger agreement."

                             The Deal

As reported by the Troubled Company Reporter on July 13, 2007,
Huntsman Corporation  agreed to a definitive merger agreement
with Hexion Specialty Chemicals Inc., pursuant to a transaction
with a total value of approximately US$10.6 billion, including
the assumption of debt.

Under the terms of the agreement, Hexion will acquire all of the
outstanding common stock of Huntsman for US$28 per share in
cash. The agreement also provides that the cash price per share
to be paid by Hexion will increase at the rate of 8% per annum
beginning 270 days from July 12, 2007.

Huntsman has terminated the merger agreement with Basell AF
believing that the Hexion transaction was a superior proposal.  
The Hexion deal was unanimously approved by the board of
directors of Huntsman.  

The transaction is subject to customary closing conditions,
including regulatory approval in the U.S. and in Europe, well as
the approval of Huntsman shareholders.  Entities controlled by
MatlinPatterson and the Huntsman family and a Huntsman
charitable trust, who collectively own approximately 57% of
Huntsman's common stock, have agreed to vote in favor of the
transaction.

The transaction is not subject to a financing condition and
commitments have been obtained by Hexion for all necessary debt
financing from affiliates of Credit Suisse and Deutsche Bank AG.  
Hexion will have up to 12 months, subject to a 90 day extension
by the Huntsman board under certain circumstances, to close the
transaction.

Merrill Lynch & Co. and Cowen and Company LLC acted as financial
advisors to Huntsman.  Vinson & Elkins L.L.P. and Shearman and
Sterling LLP acted as legal advisors to Huntsman.

                Extension of Merger Termination Date

On Jan. 29, 2008, the TCR reported that Hexion informed Huntsman
that it will exercise its right to extend the termination date
by 90 days from April 5 to July 4, 2008.  

On April 5, 2008, Hexion Specialty Chemicals Inc. exercised an
option under its merger agreement with Huntsman Corporation
dated as of July 12, 2007, extending the merger agreement
termination date by 90 days, to 5:00 p.m. Houston time on July
4, 2008.

                 Hexion's Lawsuit to Cancel Merger

On June 19, 2008, the TCR reported that Hexion and related
entities filed a suit in the Delaware Court of Chancery to
cancel the agreement.  Hexion said in the suit that it believes
that the capital structure agreed to by Huntsman and Hexion for
the combined company is no longer viable because of Huntsman's
increased net debt and its lower than expected earnings.  

While both companies individually are solvent, Hexion believes
that consummating the merger on the basis of the capital
structure agreed to with Huntsman would render the combined
company insolvent.

                       Comments and Responses

Hexion said that the company and Apollo Management L.P. received
a letter from Peter Huntsman, Huntsman Corporation's president
and CEO, stating that their actions were inconsistent with the
terms of themerger agreement.  

Huntsman is violating its obligations to Huntsman Corp. by
seeking to cancel the transaction, Bloomberg relates according
to Mr. Huntsman.  Mr. Huntsman reportedly stated that the
actions appear to be a blatant attempt to deprive its
shareholders of the benefits of the Merger Agreement that was
agreed to nearly a year ago.

                       Huntsman's Countersuit

Reports say Huntsman has filed a countersuit against Apollo
Management and two of its founders in Texas state court,
alleging interference with its merger with Hexion Specialty
Chemicals, an Apollo company.  Huntsman is seeking a jury trial
in Texas to determine liability for actual damages exceeding
US$3 billion, plus exemplary damages, according to Plasteurope
(Germany).

In response, Hexion said: "It is unfortunate that Huntsman has
chosen to file a baseless lawsuit against Apollo and to
personally sue two of its principals.  Huntsman's Texas suit
violates a clear provision of the merger agreement which
requires that any litigation be brought exclusively in the State
of Delaware.  As we alleged in our suit, due to Huntsman's
underperformance, we believe that consummating the merger on the
basis of the capital structure agreed to with Huntsman would
render the combined company insolvent.  In fact, Huntsman's suit
does not dispute that the combined company would be insolvent.  
We believe Huntsman's lawsuit is wholly without merit."

                    About Hexion Specialty

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.

Outside the United States, the company has regional headquarters
in: China through Hexion Specialty Chemicals Singapore Pte Ltd.;
Australia through Hexion Specialty Chemicals Australia Pty.; the
Netherlands through Hexion Specialty Chemicals B.V.; and in
Brazil through Hexion Quimica Industria e Comercio Ltda.

                    About Huntsman Corporation
  
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.  The Company had 2007
revenues of approximately US$10 billion.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 25, 2008, 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.

Moody's Investors Service’s meanwhile reiterated that the debt
ratings and the corporate family ratings (CFR -- Ba3) for
Huntsman Corporation and Huntsman International LLC, a
subsidiary of Huntsman remain under review for possible
downgrade.


IMPOMOTOR SA: Trustee to File Individual Reports on Monday
----------------------------------------------------------
Ernesto Carlos Borzone, the court-appointed trustee for
Impomotor S.A.'s bankruptcy proceeding, will present the
validated claims as individual reports the National Commercial
Court of First Instance in Buenos Aires on July 7, 2008.

Mr. Borzone verified creditors' proofs of claim until
May 23, 2008.  He will submit to court a general report
containing an audit of Impomotor's accounting and banking
records on Sept. 2, 2008.

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

The trustee can be reached at:

           Ernesto Carlos Borzone
           Cuenca 1464
           Buenos Aires, Argentina


GRAHAM PACKAGING: Inks US$3B Merger Contract With Hicks Purchase
----------------------------------------------------------------
Graham Packaging Holdings Co. agreed in principle to combine
with Hicks Acquisition Company I Inc. in a deal valued at US$3.2
billion.

The company stated that the agreement to go public through a
transaction with Hicks Acquisition in partnership with The
Blackstone Group and the Graham Group, is believed to be the
largest ever between a SPAC and an industrial company.

The deal, subject to execution of a definitive agreement, is
expected to be finalized in the next few days.

After completion of the transaction, the combined enterprise
will be renamed Graham Packaging company and will apply for
listing on the New York Stock Exchange.  Blackstone has agreed
it will maintain the largest ownership stake for at least two
years as it continues to play an important role in guiding the
company strategically and operationally.

"After considering more than a hundred possible transactions,
we're tremendously pleased to have identified Graham Packaging
as the right transaction for Hicks Acquisition, and to be
partnering with Blackstone, whose senior partners I have had
close business relationships with for many years, and the other
Current Graham Equity Holders," Mr. Hicks said.  

"Under the leadership since December 2006 of a new management
team headed by chairman and CEO Warren Knowlton and COO and CFO
Mark Burgess, Graham Packaging has burnished its already-
outstanding reputation as the technology and innovation leader
in its industry's high-value-added segment and has significantly
improved its operational and financial performance," Mr. Hicks
stated.

"We look forward to completing the transaction and supporting
the management team as they continue to create value for Graham
Packaging's customers, continue to build a solid platform for
profitable growth, and work to realize Graham Packaging's full
operational, financial and investment potential," Mr. Hicks
continued.

"Blackstone is pleased to partner with [Mr.] Hicks and
management for this next chapter of Graham Packaging as a public
company," Chinh Chu, a Graham Packaging board member and a
senior managing director at Blackstone, said.

"We look forward to partnering with Tom Hicks and Blackstone,
both of whom have long track records of value creation,"  Warren
Knowlton, chairman and chief executive officer of Graham
Packaging, said.  "Graham Packaging has made significant
progress since December 2006."

"With the support of our new ownership group and our strong free
cash flow from operations, we will continue to invest in and
grow our business, pay down debt, accelerate our earnings
growth, and meet the needs and expectations of our employees,
customers, suppliers and stockholders," Mr. Knowlton continued.

"We believe our collocation strategy enhances coordination with
our customer base and is the cornerstone of improved
sustainability for our customers and for us," Mr. Knowlton said.

                    Details of the Transaction

Graham Packaging will go public through the transaction with
Hicks Acquisition.  In connection with the transaction, the
current stockholders of Graham Packaging will receive US$350
million of cash held in trust, 35.0 million common shares, and
2.8 million warrants upon completion of the transaction.

The purchase consideration includes a transfer of value to the
Current Graham Equity Holders of approximately 2.8 million
Founder's shares and warrants.  In exchange, the Hicks-led
sponsor will retain, through a series of transactions, Earnout
Units, the shares of which have a trigger price of US$13.75 and
the warrants of which will become exercisable at a strike price
of US$10.00 and a trigger price of US$15.00.

The transaction has been structured to preserve Graham
Packaging's existing capital structure and does not breach, or
result in a default under, the company's existing credit
facilities or constitute a "change of control" under the
indentures of the company's existing senior and senior
subordinated notes issues.

Hicks Acquisition's existing public stockholders along with
Mr. Hicks will own approximately 66% of Graham's common shares
outstanding after the completion of the transaction.  The
Current Graham Equity Holders, led by Blackstone, will remain in
the aggregate the company's largest shareholder, with
approximately
34% of the common shares outstanding, and will continue to play
an important role in guiding the company.

The aforementioned common stock ownership percentages are
calculated as basic ownership and exclude warrants and options
from the ownership calculation.  The existing management team,
including Chairman and CEO Warren Knowlton and COO and CFO Mark
Burgess, will continue to lead the company.

Completion of the transaction is subject to expiration or early
termination of the applicable Hart-Scott-Rodino waiting period,
Hicks Acquisition stockholder approval and other customary
closing conditions, and is expected to occur later this year.

Hicks Acquisition was advised with regard to the transaction by
Citi and the law firm of Akin Gump Strauss Hauer & Feld LLP.  
Houlihan Lokey served as a financial advisor to the independent
directors of Hicks Acquisition.  Graham Packaging was advised
with regard to the transaction by Deutsche Bank Securities Inc.,
Blackstone Advisory Partners, and the law firm of Simpson
Thacher & Bartlett LLC.

        Necessary Steps for Consummation of the Transaction

As provided in Hicks Acquisition's certificate of incorporation,
each holder of Hicks Acquisition's common stock has the right to
convert such holder's shares into cash if such holder votes
against the transaction, elects to exercise such holder's
conversion rights and the transaction is approved and completed.

Hicks Acquisition cannot complete the transaction unless:

   (1) a majority of the shares issued in the initial public
       offering cast at the stockholders' meeting are voted in
       favor of the transaction;

   (2) holders of no more than 16,559,999 shares of common
       stock, (the number representing 30% minus one share of
       the 55,200,000 shares of Hicks Acquisition issued in the
       initial public offering, vote against the transaction and
       exercise their conversion rights to have their shares
       converted into cash; and

   (3) certain other customary conditions are satisfied.

All of Hicks Acquisition's initial stockholders have agreed to
vote an aggregate of 13,800,000 shares, or 20% of Hicks
Acquisition's outstanding common stock, issued to them prior to
the initial public offering in accordance with the vote of the
holders of a majority of the shares issued in the initial public
offering and have agreed to vote any of shares acquired in or
following the initial public offering in favor of the
transaction.

                           No Assurances

There can be no assurance that the transaction will be
completed, nor can there be any assurance, if the transaction is
completed, that the potential benefits of combining the
companies will be realized.

Hicks Acquisition stockholders may obtain copies of all
documents filed with the SEC regarding the transaction, free of
charge by directing a request to:

     Hicks Acquisition
     100 Crescent Court, Suite 1200
     Dallas, TX 75201

             About Hicks Acquisition company I Inc.

Headquartered in Dallas, Texas Hicks Acquisition Company (AMEX:
TOH) is a special purpose acquisition company, launched in
October 2007 in an initial public offering that was at the time,
at
US$552 million of gross proceeds, the largest SPAC IPO.  Founded
by Thomas O. Hicks, Hicks Acquisition was formed for the purpose
of acquiring, or acquiring control of, through a merger, capital
stock exchange, asset acquisition, stock purchase,
reorganization or similar business combination, one or more
businesses or assets.  It currently has no operating businesses.

                      About Graham Packaging

Headquartered in York, Pennsylvania, Graham Packaging Holdings
company, -- http://www.grahampackaging.com/-- the parent  
company of Graham Packaging company LP, is engaged in the
design, manufacture and sale of customized blow molded plastic
containers for the branded food and beverage, household,
automotive lubricants and personal care/specialty product
categories.  The company currently operates 88 plants worldwide.  
In Latin America, the company has operations in Argentina,
Brazil, Ecuador, Mexico and Venezuela.

The Blackstone Group, an investment firm, is the majority owner
of Graham Packaging Holdings company.

As reported by the Troubled Company Reporter on May 14, 2008,
Graham Packaging Holdings company's consolidated balance sheet
at March 31, 2008, showed US$2.3 billion in total assets and
US$3.0 billion in total liabilities, resulting in a
US$771.5 million total partners' deficit.


GRAHAM PACKAGING: Fitch Ratings Unaffected by Merger with Hicks
---------------------------------------------------------------
Fitch Ratings currently anticipates no ratings action as a
result of the announcement on July 1, 2008 that Graham Packaging
Company, L.P. is going public through a business combination
with Hicks Acquisition Company, Inc. in partnership with
Graham's current equity owners The Blackstone Group and the
Graham Group in a transaction valued at US$3.15 billion.

The transaction is currently structured such that a change of
control as defined according to provisions within the company's
credit agreement and bond indentures will not be triggered.  
Change of control put provisions within the company's senior
unsecured and senior subordinated notes indentures which require
payment at 101% of par will therefore not be effective.  
Further, it is anticipated that Graham's current capital
structure will remain in place, with no additional debt
financing required for the transaction to close.  

There is a possibility of modest debt reduction as part of the
current financing terms, but Fitch does not anticipate a
meaningful change to the company's credit profile or capital
structure as a result and Graham's credit metrics are expected
to remain relatively unchanged from current levels.  Fitch will
monitor the progression of the transaction and any changes to
the financing or legal structure may warrant a further review of
Graham's ratings.

Fitch's current ratings for Graham are:

Graham Packaging Company, L.P and subsidiary GPC Capital Corp. I
  -- Issuer Default Rating 'B-';
  -- Senior secured revolving credit facility 'B/RR3';
  -- Senior secured term loan 'B/RR3';
  -- Senior subordinated notes 'CCC/RR6'.
  -- Senior unsecured notes 'CCC/RR6'.

The Rating Outlook is Stable.  Approximately US$2.5 billion of
debt is covered by the ratings.

Headquartered in York, Pennsylvania, Graham Packaging Holdings
company, -- http://www.grahampackaging.com/-- the parent  
company of Graham Packaging company LP, is engaged in the
design, manufacture and sale of customized blow molded plastic
containers for the branded food and beverage, household,
automotive lubricants and personal care/specialty product
categories.  The company currently operates 88 plants worldwide.  
In Latin America, the company has operations in Argentina,
Brazil, Ecuador, Mexico and Venezuela.

The Blackstone Group, an investment firm, is the majority owner
of Graham Packaging Holdings company.

As reported by the Troubled Company Reporter on May 14, 2008,
Graham Packaging Holdings company's consolidated balance sheet
at March 31, 2008, showed US$2.3 billion in total assets and
US$3.0 billion in total liabilities, resulting in a
US$771.5 million total partners' deficit.


MARIO CORDANI: Trustee to Present General Report on Monday
----------------------------------------------------------
The court-appointed trustee for Mario Cordani S.A.'s bankruptcy
proceeding will submit to the National Commercial Court of First
Instance in Santa Fe a general report containing an audit of the
firm's accounting and banking records on July 7, 2008.

The trustee verified creditors' proofs of claim until
April 10, 2008.  

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

The debtor can be reached at:

         Mario Cordani S.A.
         Ruta Nacional Numero 11, Km. 481
         Recreo, Departamento La Capital
         Santa Fe, Argentina


TENNECO INC: Fitch Holds Ratings and Revises Outlook to Stable
--------------------------------------------------------------
Fitch Ratings has affirmed the Issuer Default Rating and
outstanding debt ratings of Tenneco Inc. as:

Tenneco, Inc.
  -- IDR at 'BB-';
  -- Senior secured bank facility at 'BB+';
  -- Senior secured notes at 'BB';
  -- Senior unsecured notes at 'BB-';
  -- Subordinated at 'B'.

Fitch has also revised Tenneco's Rating Outlook to Stable from
Positive.

The Outlook revision reflects the continuing deterioration in
North American industry production volumes, high commodity
costs, and the impact on consolidated margins and cash flow.  
Combined with expenditures for product engineering and global
new business wins, Fitch believes there is limited opportunity
for reducing leverage over the short term, indicating a longer
time horizon for any an improvement in the rating.

Approximately 23% of Tenneco's sales in 2007 were derived from
North American operations of Ford and General Motors, and a
number of Tenneco's top ten platforms are in large vehicle
segments that are experiencing the steepest declines in sales
volumes and production.  Despite the impact of the American Axle
strike on unit production volumes, first-quarter production
declines could still act as a proxy for 2008 volumes given the
severe decline in large SUV and pickup North American sales and
projected production for the remainder of 2008.  Although
Tenneco has a flexible fixed-cost structure and has taken
actions to adjust costs to the current environment, lower
volumes in North America and higher commodity costs will
continue to pressure consolidated margins.

Despite turmoil in the North American market, Tenneco remains on
a secular growth path globally.  Growth in the company's
technology-driven products and tightening emission standards
around the globe have led to solid growth in new business wins,
and enhanced Tenneco's diversification across end customers and
geographies.  European margins have also demonstrated
improvement from recent sub-par levels.  To capitalize on growth
opportunities, Tenneco has ratcheted up capital expenditures,
research and engineering expenditures, and pursued a modest
level of acquisition activity, limiting improvement in the
balance sheet and free cash flow generation.  Financial metrics
have steadily improved over the past several years, and Fitch
expects that over the longer term, Tenneco will further improve
metrics largely through EBITDA growth rather than debt
reduction.

Tenneco is projected to produce roughly breakeven free cash flow
in 2008 due to North American industry conditions, high
commodity costs and spending on growth initiatives.  Liquidity
remains healthy with a modest cash cushion and sufficient bank
revolving credit availability.  Tenneco also continues to
demonstrate efficiency in working capital management.  Tenneco
retains sufficient room under its Debt/EBITDA covenant that it
should not be an issue in 2008 or 2009, despite a modest
tightening of the requirement in 2009.  In 2007, Tenneco
opportunistically refinanced its bank agreement and a portion of
its long-term debt prior to the capital market disruptions,
lowering its expected interest costs and extending maturities.

Based in Lake Forest, Illinois, Tenneco Inc., (NYSE: TEN) --
http://www.tenneco.com/-- manufactures automotive ride and
emissions control products and systems for both the original
equipment market and aftermarket.  Brands include Monroe(R),
Rancho(R), and Fric Rot ride control products and Walker(R) and
Gillet emission control products.  The company has operations in
Argentina, Japan, and Germany.  The company has
approximately 19,000 employees worldwide.


YACOPLAST SA: Creditors to Vote on Settlement Plan Today
--------------------------------------------------------
Yacoplast S.A.'s creditors will vote on the completed settlement
plan during an informative assembly on July 4, 2008.

Estudio Carlen, Paulin, Sanzone, Suarez & Asoc., the court-
appointed trustee Yacoplast's reorganization proceeding,
verified creditors' proofs of claim until Sept. 28, 2007.  
Estudio Carlen presented the validated claims in court as
individual reports on Nov. 12, 2007.  The trustee also submitted
to court a general report containing an audit of Yacoplast's
accounting and banking records on Dec. 26, 2007.

The trustee can be reached at:

        Estudio Carlen, Paulin, Sanzone, Suarez & Asoc.
        Uruguay 782
        Buenos Aires, Argentina



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

MESA AIR GROUP: Earns US$17.5 Mil. in 2nd Quarter Ended March 31
----------------------------------------------------------------
Mesa Air Group, Inc., reported on Monday its financial results
for the second quarter ended March 31, 2008.

Mesa Air Group Inc. reported net earnings from continuing
operations of US$17.5 million for the second quarter of 2008,
compared with a net loss from continuing operations of
US$22.6 million in the second quarter of 2007.

Including loss from discontinued operations of US$8.0 million in
2008 and US$1.4 million in 2007, the company reported net income
of US$9.4 million in 2008, versus a net loss of US$24.0 million
in 2007.

Total operating revenues for the second quarter of 2008
increased US$24.0 million, or 8.1%, to US$320.3 million from
US$296.3 million in the same quarter in 2007.  

Pro forma net loss for the quarter was US$4.1 million.  Pro
forma net adjustments on an after tax basis were the following:
US$21.0 million benefit as a result of a negotiated settlement
with Hawaiian Airlines, US$4.5 million gain on repurchase of
convertible notes, US$1.9 million gain on securities, lease
return costs of US$3.3 million, startup costs associated with
the Chinese joint venture of US$900,000, go! legal costs of
US$600,000 and US$1.1 million of other expenses.

Total Available Seat Miles for the second quarter of fiscal 2008
decreased 10.4% from the second quarter of 2007 primarily due to
a decrease in the number of aircraft flown from 201 as of
March 31, 2007, to 178 as of March 31, 2008.  

At March 31, 2008, Mesa's operating fleet was comprised of 84
50-seat regional jets, 41 86-seat regional jets, two 76-seat
regional jets and 20 66-seat regional jets, 16 37-seat
turboprops and 15 19-seat turboprops.  As of March 31, 2008, the
company operated 50 regional jets and 15 turboprops on a
codeshare basis with US Airways, 53 regional jets and ten
turboprops for United and 39 regional jets for Delta.  The
company also flew six turboprops at Mesa Airlines and five
regional jets in Hawaii operating as go!

                       Cash and Total Debt

As of March 31, 2008, the company's cash, cash equivalents,
restricted cash and marketable securities were approximately
US$158.1 million, which includes US$102.8 million in restricted
cash.

At March 31, 2008, the company had total debt of US$594.1
million, compared to total debt of US$632.1 million at Dec. 31,
2007.

                        Significant Events

Events during the second quarter included:

  -- Delta: On March 28, 2008, Delta notified the company of its
     intent to terminate the Delta Connection Agreement among
     Delta, the company, and the company's wholly owned
     subsidiary, Freedom Airlines Inc., alleging failure to
     maintain a specified completion rate with respect to its
     ERJ-145 Delta Connection flights during three months of the
     six-month period ended February 2008.  

     Following Delta's termination notification, the company
     filed a Complaint on  April 7, 2008, in the United States
     District Court for the Northern District of Georgia seeking
     declaratory and injunctive relief.  An evidentiary hearing
     was conducted on May 27 through May 29, 2008.  Following
     the hearing, the Court ruled in the company's favor and
     issued a preliminary injunction against Delta.

  -- Hawaiian Settlement: On April 30, 2008, the company reached
     a settlement of its suit with Hawaiian.  Under the terms of
     the settlement and without admitting any wrongdoing, Mesa
     received US$37.5 million from the bond it previously posted
     with the United States Bankruptcy Court for the District of
     Hawaii.  Hawaiian Airlines retained the remaining
     collateral of the bond totaling US$52.5 million.  

     This settlement did not restrict in any way go!'s ability
     to continue to offer services in the Hawaiian inter-island
     market.  As a result of this settlement, the company
     adjusted the contingent liability recorded in fiscal 2007
     and recorded a gain of US$34.1 million at March 31, 2008,
     to reflect the amount ultimately paid.

  -- Air Midwest: In the fourth quarter of fiscal 2007, the
     company committed to a plan to sell Air Midwest or certain
     assets thereof.  Air Midwest consists of turboprop
     operations, which includes the company's independent Mesa
     operations, Midwest Airlines code-share operations, and the
     company's Beechcraft 1900D turboprop code-share operations
     with US Airways.  

     In connection with this decision, the company began
     soliciting bids for the sale of the twenty Beechcraft 1900D
     aircraft in operation and began to take the necessary steps
     to exit the Essential Air Service markets that the company
     serves, and expects to be out of all EAS markets by
     June 30, 2008.  All assets and liabilities, results of
     operations, and other financial and operational data
     associated with these assets have been presented in the
     company's consolidated financial statements as discontinued
     operations separate from continuing operations.

"During the second quarter we resolved a number of important
issues," said Mesa Air Group chairman and chief executive
officer, Jonathon Ornstein.  "However, there remain many
significant challenges to overcome both here at Mesa and with
the industry.  I wish to thank our people for their continued
dedication as we work together to offer the very best service to
our customers and our partners," Mr. Ornstein added.

                          Balance Sheet

At March 31, 2008, the company's consolidated balance sheet
showed US$1.2 billion in total assets, US$1.0 billion in total
liabilities, and US$144.0 million in total stockholders' equity.

Full-text copies of the company's consolidated financial
statements for the quarter ended March 31, 2008, are available
for free at http://researcharchives.com/t/s?2f03

                          About Mesa Air

Based in Phoenix, Arizona, Mesa Air Group Inc. (Nasdaq: MESA)
-- http://www.mesa-air.com/-- currently operates 181 aircraft  
with over 900 daily system departures to 129 cities, 40 states,
the District of Columbia, Canada, the Bahamas and Mexico.  Mesa
operates as Delta Connection, US Airways Express and United
Express under contractual agreements with Delta Air Lines, US
Airways and United Airlines, respectively, and independently as
Mesa Airlines and go!.  

In June 2006 Mesa launched inter-island Hawaiian service as go!
This operation links Honolulu to the neighbor island airports of
Hilo, Kahului, Kona and Lihue.  The company, founded by Larry
and Janie Risley in New Mexico in 1982, has approximately 5,000
employees and was awarded Regional Airline of the Year by Air
Transport World magazine in 1992 and 2005.  Mesa is a member of
the Regional Airline Association and Regional Aviation Partners.

                       Bankruptcy Warning

As disclosed in the Troubled Company Reporter on May 29, 2008,
Harry R. Weber of the Associated Press reported that Mesa Air
Group Inc. president and chief operating officer Michael  
Lotz warned the company could will file for bankruptcy
protection by July 20 if Delta Air Lines Inc. successfully
terminated their Connection Agreement and Mesa can't redeploy
unused aircraft.

On March 28, 2008, Delta notified the company of its intent to
terminate the Delta Connection Agreement among Delta, the
company, and the company's wholly owned subsidiary, Freedom
Airlines Inc., alleging failure to maintain a specified
completion rate with respect to its ERJ-145 Delta Connection
flights during three months of the six-month period ended
February, 2008.  Following Delta's termination notification, the
company filed a Complaint on April 7, 2008, in the United States
District Court for the Northern District of Georgia seeking
declaratory and injunctive relief.  An evidentiary hearing was
conducted on May 27 through May 29, 2008.  Following the
hearing, the Court ruled in the company's favor and issued a
preliminary injunction against Delta.

While the effect of this ruling is to prohibit Delta from
terminating the Delta Connection Agreement covering the ERJ-145
aircraft operated by Freedom, based on Freedom's completion rate
prior to April, 2008, pending a final trial at a date to be
determined by the Court, Delta has the right to appeal the
Court's decision on the issuance of a preliminary injunction,
and Delta has announced publicly that it intends to file an
appeal.  

Prior to the Court's ruling, Delta planned to remove from
service a significant portion of the aircraft in early June 2008
and all aircraft in July 2008 and forward.  Delta did not
immediately reverse its plans based upon the Court's ruling.  If
Delta takes the position that the Connection Agreement does not
obligate it to keep the aircraft in service on a full time
basis, the company will incur significant unreimbursed costs
associated with the fleet of ERJ-145 aircraft.  The company
believes that Delta is obligated to schedule the aircraft and
compensate the company accordingly.


MESA AIR: In Discussions with Delta Regarding Flying Contract
-------------------------------------------------------------
Mesa Air Group Inc. disclosed in a regulatory filing with the
Securities and Exchange Commission that it is in discussions
with Delta Air Lines, Inc., regarding various issues concerning
the parties' ERJ-145 Delta Connection Agreement.

Delta notified Mesa of its intent to terminate the agreement on
March 28, 2008.

The Delta Connection Agreement dated May 3, 2005, is among
Delta, Mesa Air, and Mesa Air's wholly owned subsidiary, Freedom
Airlines, Inc.  The Connection Agreement includes, among other
arrangements, Mesa Air's agreement to operate up to 34 model
ERJ-145 regional jets leased by Mesa utilizing Delta's name.  
Beginning in August 2008, pursuant to an amendment to the
Connection Agreement, eight ERJ-145s will be removed from the
scope of the Connection Agreement at a rate of three per month,
resulting in the operation of 26 ERJ-145s by November 2008.

In fiscal 2007, the Connection Agreement accounted for roughly
20% of Mesa Air's 2007 total revenues.  Delta seeks to terminate
the Connection Agreement as a result of Freedom's alleged
failure to maintain a specified completion rate with respect to
its ERJ-145 Delta Connection flights during three months of the
six-month period ended February 2008.

On April 7, 2008, Mesa filed a lawsuit against Delta seeking
declaratory and injunctive relief and specific performance by
Delta of its obligations under the Connection Agreement.  On May
9, Mesa filed a motion for a preliminary injunction in the
United States District Court for the Northern District of
Georgia against Delta to enjoin its attempted termination of the
Connection Agreement.  An evidentiary hearing was conducted on
May 27 through May 29, 2008.  

As reported by the Troubled Company Reporter on May 30, 2008,
the District Court ruled in Mesa's favor and issued a
preliminary injunction against Delta. The preliminary injunction
prohibits Delta from terminating the Connection Agreement based
on Freedom's completion rate prior to April 2008, pending a
final trial at a date to be determined by the Court.  Delta has
announced publicly that it intends to appeal.

If the District Court or Court of Appeals ultimately rules in
favor of Delta and allows the termination of the Connection
Agreement, Mesa believes it will be unable to redeploy the ERJ-
145s in a timely manner, or at the lease rates Mesa receives
under the Connection Agreement in the event of any redeployment
of the aircraft.

In addition to losing roughly US$20,000,000 per month in revenue
-- or roughly US$960,000,000 over the next four years -- Mesa
estimates that leasing costs, labor and other costs totaling
approximately US$250,000,000 to US$300,000,000 over the next
four years will be incurred by the company.  As a result, Mesa's
cash flows from operations and available working capital will be
insufficient to meet these cash requirements.

In the absence of obtaining additional capital through equity or
debt financings, asset sales, consensual restructuring of debt
and lease terms or similar measures, Mesa will be unable to meet
its financial obligations and may need to seek protection under
applicable U.S. reorganization laws to avoid or delay actions by
its lessors, creditors and code-share partners, which will have
a material adverse effect on its ability to continue as a going
concern.

Prior to the District Court ruling, Mesa said Delta planned to
remove from service a significant portion of the aircraft in
early June 2008 and all aircraft in July 2008 and forward.  
Delta did not immediately reverse its plans based upon the
Court's ruling.  If Delta takes the position that the Connection
Agreement does not obligate it to keep the aircraft in service
on a full time basis, Mesa said it will incur significant
unreimbursed costs associated with the fleet of ERJ-145
aircraft.

Mesa said Delta is obligated to schedule the aircraft on a full
time basis and compensate Mesa accordingly.  Mesa said it has
communicated this position to Delta and have been in discussion
regarding issues concerning the Connection Agreement.  Mesa said
it cannot assure the outcome of the negotiations and whether or
not the outcome will materially adversely affect its financial
condition or results of operations.

Mesa Air Group Inc. -- http://www.mesa-air.com-- operates 182    
aircraft with over 1,000 daily system departures to 157 cities,
42 states, the District of Columbia, Canada, the Bahamas and
Mexico.  Mesa operates as Delta Connection, US Airways Express
and United Express under contractual agreements with Delta Air
Lines, US Airways and United Airlines, and independently as Mesa
Airlines and go!.  In June 2006 Mesa launched inter-island
Hawaiian service as go!  This operation links Honolulu to the
neighbor island airports of Hilo, Kahului, Kona and Lihue.  The
Company, founded by Larry and Janie Risley in New Mexico in
1982, has approximately 5,000 employees and was awarded Regional
Airline of the Year by Air Transport World magazine in 1992 and
2005. Mesa is a member of the Regional Airline Association and
Regional Aviation Partners.  Mesa has  5,000 employees overall.

Freedom Airlines currently operates 34 50-seat ERJ-145 and 7 76-
seat CRJ-900 aircraft for Delta Connection.

On May 14, 2008, Air Midwest, Inc., a wholly owned subsidiary of
Mesa Air, unveiled plans to discontinue all operations by
June 30 including its current scheduled services, citing record-
high fuel prices, insufficient demand and a difficult operating
environment as the main factors in its decision.

                       Bankruptcy Warning

As disclosed in the Troubled Company Reporter on May 29, 2008,
Mesa Air Group Inc. president and chief operating officer
Michael Lotz warned the company could will file for bankruptcy
protection by July 20 if Delta Air Lines, Inc. successfully
terminated their Connection Agreement and Mesa can't redeploy
unused aircraft.

On March 28, 2008, Delta notified the company of its intent to
terminate the Delta Connection Agreement among Delta, the
company, and the company's wholly owned subsidiary, Freedom
Airlines Inc., alleging failure to maintain a specified
completion rate with respect to its ERJ-145 Delta Connection
flights during three months of the six-month period ended
February, 2008.  Following Delta's termination notification, the
company filed a Complaint on April 7, 2008, in the United States
District Court for the Northern District of Georgia seeking
declaratory and injunctive relief.  An evidentiary hearing was
conducted on May 27 through May 29, 2008.  Following the
hearing, the Court ruled in the company's favor and issued a
preliminary injunction against Delta.

While the effect of this ruling is to prohibit Delta from
terminating the Delta Connection Agreement covering the ERJ-145
aircraft operated by Freedom, based on Freedom's completion rate
prior to April, 2008, pending a final trial at a date to be
determined by the Court, Delta has the right to appeal the
Court's decision on the issuance of a preliminary injunction,
and Delta has announced publicly that it intends to file an
appeal.  

Prior to the Court's ruling, Delta planned to remove from
service a significant portion of the aircraft in early June 2008
and all aircraft in July 2008 and forward.  Delta did not
immediately reverse its plans based upon the Court's ruling.  If
Delta takes the position that the Connection Agreement does not
obligate it to keep the aircraft in service on a full time
basis, the company will incur significant unreimbursed costs
associated with the fleet of ERJ-145 aircraft.  The company
believes that Delta is obligated to schedule the aircraft and
compensate the company accordingly.



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

CATALINA ASSURANCE: Proofs of Claim Filing Deadline Is July 30
--------------------------------------------------------------
Catalina Assurance Ltd.'s creditors are given until July 30,
2008, to prove their claims to Peter C.B. Mitchell and Nigel
J.S. Chatterjee, 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.

Catalina Assurance's shareholder decided on June 30, 2008, to
place the company into voluntary liquidation under Bermuda's
Companies Act 1981.

The liquidators can be reached at:

         Peter C.B. Mitchell and Nigel J.S. Chatterjee
         PricewaterhouseCoopers Advisory Limited
         P.O. Box HM 1171, Hamilton, HM EX
         Bermuda


DIGICEL LTD: Reports 39% Subscriber Growth in FY Ended March 31
---------------------------------------------------------------
Digicel Ltd. has completed its fiscal year ending March 31,
2008, with 6.54 million customers, representing a 39 percent
increase compared to the same quarter in the previous fiscal
year.  Operating across 23 markets, Digicel Group continues to
experience organic growth in existing markets while increasing
mobile penetration growth rates in new markets.

In November 2007, Digicel successfully launched operations in
Suriname, offering superior customer care, better value and
wider coverage while helping to drive mobile penetration growth
from 55 percent to close to 70 percent.  Digicel already has a
presence in South America through its operations in Guyana and
French Guiana.  Its Caribbean and Latin American GSM networks
also extend across the British West Indies, the Dutch Caribbean,
the French West Indies, Bermuda and El Salvador.

Digicel plans to further expand later this year with a pending
launch in the British Virgin Islands, while Digicel Central
America Holdings, a sister company to Digicel Group, prepares to
launch in Honduras and Panama.  These launches will expand
Digicel's GSM network to 26 markets.

"We're very excited about our ability to sustain growth
opportunities in existing markets while picking up momentum in
new ones, and we've had one of our most successful financial
years to date," said Colm Delves, Digicel Group CEO.  "We will
continue to put our customers first by offering them better
value, world-class customer care, new technology innovations and
attractive offerings based on the strength of our network."

Digicel's key milestones to date include:

Market Growth:

   -- Digicel El Salvador reached its one-year anniversary
      April 12, 2008, tripling its subscriber base and
      increasing mobile penetration rates from approximately
      30 to 61 percent in 12 months.  Meanwhile, Digicel Central
      America Holdings Ltd. won a competitive license bid to
      operate a GSM mobile network in Panama in May 2008,
      following its successful license bid in Honduras in
      December 2007.

   -- In November 2007, Digicel launched in the newly
      liberalized market of Suriname and has since dramatically
      gained market share of 30 percent in just seven months.

   -- In May 2008, Digicel Haiti celebrated its second year of
      operations becoming the leading brand in the country with
      more than 2,000,000 customers.  The Digicel Haiti
      Foundation celebrated its one-year anniversary in March
      2008, delivering on its initial commitment to build 20
      primary schools across the country.

Interconnect:

   -- In Trinidad & Tobago in May 2008, Digicel and TSTT signed
      an interconnect agreement provisioning that they both pay
      reciprocal and retroactive interconnect charges for
      interconnection services provided since inception.  This
      agreement enables Trinidad and Tobago mobile users to send
      and receive SMS and text messages from other mobile users
      in the country.  Both parties also signed an agreement in
      relation to sharing space of their respective cellular
      towers.

New Management:

   -- Digicel continues to expand its senior management team
      with several key appointments, hiring Jose Antonio
      Rodriguez as Digicel El Salvador CEO in March 2008 and
      promoting former CEO, Luis La Rocca, to Vice President of
      Business Development for Digicel Central America.  La
      Rocca is responsible for spearheading expansion efforts
      across the Central American region.

Digicel's investment in the Caribbean and the Central American
region exceeds US$2 billion.  The company directly employs more
than 4,000 people across its 23 markets.

                          About Digicel

Digicel Ltd. is a wireless services provider in the Caribbean
region founded in 2000, and controlled by Denis O'Brien.  The
company started operations in Jamaica in April 2001 and now
offers GSM mobile services in Caribbean countries including
Jamaica, St. Lucia, St. Vincent, Aruba, Grenada, Barbados,
Bermuda, Cayman, and Curacao.  Digicel finished FY2005 with
1.722 million total subscribers -- 97% pre-paid -- estimated
market share of 67% and revenues and EBITDA of US$478 million
and US$155 million, respectively.

                         *     *     *

In February 2007, Moody's Investors Service affirmed Caa2 senior
unsecured rating to Digicel Group Limited's US$1.4 billion
senior unsecured notes offering.


EAGLE SYSTEMS: Proofs of Claim Filing Deadline Is July 30
---------------------------------------------------------
Eagle Systems Development Ltd.'s creditors are given until
July 30, 2008, to prove their claims to Nicholas Hoskins, 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.

Eagle Systems' shareholders agreed on July 1, 2008, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.

The liquidator can be reached at:

         Nicholas Hoskins
         Wakefield Quin
         Chancery Hall, 52 Reid Street
         Hamilton, Bermuda


EAGLE SYSTEMS: Sets Final Shareholders Meeting for Aug. 5
---------------------------------------------------------
Eagle Systems Development Ltd. will hold its final shareholders
meeting on Aug. 5, 2008, at 10:00 a.m. at Wakefield Quin,
Chancery Hall, 52 Reid Street, Hamilton, Bermuda.

These matters will be taken up during the meeting:

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

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

   -- passing of a resolution dissolving the
      company.

Eagle Systems' shareholders agreed on July 1, 2008, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.

The liquidator can be reached at:

         Nicholas Hoskins
         Wakefield Quin
         Chancery Hall, 52 Reid Street
         Hamilton, Bermuda


LOCKSHIELD LTD: Proofs of Claim Filing Deadline Is July 16
----------------------------------------------------------
Lockshield Ltd.'s creditors are given until July 16, 2008, to
prove their claims to Robin J. Mayor, 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.

Lockshield's shareholders agreed on July 1, 2008, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.

The liquidator can be reached at:

         Robin J. Mayor
         Messrs. Conyers Dill & Pearman
         Clarendon House, 2 Church Street
         Hamilton, HM 11, Bermuda


LOCKSHIELD LTD: Sets Final Shareholders Meeting for Aug. 7
----------------------------------------------------------
Lockshield Ltd. will hold its final general meeting on
Aug. 7, 2008, at 9:30 a.m. at Messrs. Conyers Dill & Pearman,
Clarendon House, Church Street, Hamilton, Bermuda.

These matters will be taken up during the meeting:

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

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

   -- passing of a resolution dissolving the company.

Lockshield's shareholders agreed on July 1, 2008, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.

The liquidator can be reached at:

         Robin J. Mayor
         Messrs. Conyers Dill & Pearman
         Clarendon House, 2 Church Street
         Hamilton, HM 11, Bermuda



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

VISTA GOLD: Expects Development Timetable on Paredones Amarillos
----------------------------------------------------------------
Vista Gold Corp. has reported its status of the Change of Land
Use Permit for the Paredones Amarillos Project in Baja
California Sur, Mexico (as described in Vista's press releases
dated April 30, May 8, and May 21, 2008) and the expected
development timetable for the project.

The company has taken steps to preserve its right to proceed
with a judicial appeal of the opinion issued by the Baja
California Sur office of Secretariat of Environment and Natural
Resources (SEMARNAT) and has also completed a number of
prerequisite steps to submitting an application for a new Change
of Land Use Permit.  Changes in the law governing the Change of
Land Use Permit require Vista Gold to demonstrate that it has
the right to use the surface affected by the permit.  The
company has recently received a certificate from the General
Direction of Mines of the General Coordinator of Mines in the
Ministry of Economy verifying that its Mexican subsidiary,
Minera Paredones Amarillos S.A. de C.V., is the rightful holder
of valid mineral rights for the Paredones Amarillos Project.  

Vista Gold has also recently received an official appraisal of
the surface land in the project area from the National Institute
for the Appraisal and Administration of National Property
confirming that the surface overlying a significant part of
these mineral rights -- including the proposed pit and most of
the dumps -- is federal land.  Under Mexican mining statutes,
Minera Paredones Amarillos SA de CV has the constitutional right
to use the surface for mining activities, subject to applicable
environmental permits and federal authorizations.  This position
has been further confirmed in the foregoing certificate issued
by the General Direction of Mines of the General Coordinator of
Mines in the Ministry of Economy.  One of the mechanisms for
authorizing the use of federal land for mining activities is a
Temporary Occupation Permit.  The company is preparing an
application for a Temporary Occupation Permit and plans to
submit the application shortly.  It has signed an agreement with
a private landowner for the purchase of the remaining surface
land required by the project.

This land covers the area of the mill site, tailing impoundment
and various ancillary facilities.  The documents supporting
Vista Gold's right to use the surface, together with the
existing and valid environmental permit and other supporting
documents currently being prepared, will form the basis of the
new Change of Land Use Permit application.  The company plans to
submit this application within the next few weeks.  Based on
earlier discussions with the Secretary of SEMARNAT (press
release dated May 21, 2008), Vista Gold's management expects the
application to be processed promptly and by law within 60
working days after its filing; the foregoing in accordance with
those terms established in the applicable legal provisions.

The company expects to complete the definitive feasibility study
for the Paredones Amarillos Project by mid-August and will
commence activities to arrange financing shortly afterwards.  
Based on a preliminary schedule and assuming favorable results
from the definitive feasibility study, the successful completion
of project financing, and the issuance of a new Change of Land
Use Permit, construction of the Paredones Amarillos Project is
expected to commence before the end of 2008, with first gold
production planned to commence before the end of 2009.  A
detailed project schedule is currently under preparation and
will be made public as part of the feasibility study results.

President and Chief Operating Officer, Fred Earnest commented,
"While there is always uncertainty over timing associated with
these processes, Vista management and our advisors are confident
in our legal right to develop the Paredones Amarillos Project.  
We look forward to commencing construction on this new Mexican
gold mine."

                       About Vista Gold

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

                          *     *     *

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

Vista Gold reported US$14.2 million net loss in the year ended
Dec. 31, 2007, US$2.2 million net loss for the three-month
period ended Sept. 30, 2007, and US$3.23 million net loss for
three-month period ended June 30, 2007.



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

AMR CORP: To Cut 6,840 Jobs, Write Down US$1BB Impairment Charge
----------------------------------------------------------------
AMR Corp., the parent company of American Airlines, Inc.,
estimates that it will reduce its workforce commensurate with
the previously announced system-wide capacity reductions by
December 2008, according to a U.S. Securities and Exchange
Commission filing.  As a result of this reduction in workforce,
the company will record a charge of approximately US$75 to
US$100 million for severance related costs, a portion of which
may be recorded in the third quarter.  All severance related
costs represent cash outlays and will be incurred over a period
of up to twelve months.

Bloomberg News' Mary Schlangenstein writes that AMR is likely to
displace 6,840 employees or 8% of its total workforce in the
fourth quarter, the highest number of layoffs among U.S.
carriers who have announced job cuts this year.

As disclosed in the Troubled Company Reporter on May 22, 2008,
AMR Corp. reported significant reductions to its 2008 domestic
flight schedule, including a fourth quarter mainline domestic
capacity reduction of 11% to 12% from the previous year.  It
also outlined plans to retire at least 75 mainline and regional
aircraft and unveiled several revenue growth initiatives, as the
company responds to record fuel prices, growing concerns about
the economy and a difficult competitive environment.

Further, on June 18, 2008, the company announced, in regulatory
filing, that in connection with these capacity reductions, AMR
Corp. anticipated that it would record non-cash accounting
charges, including aircraft impairments, certain related long-
lived assets, and other disposal and associated costs.

In conjunction with the capacity reductions, the company
concluded that the carrying values of its McDonnell Douglas MD-
80 and the Embraer RJ-135 aircraft fleets are no longer
recoverable.  Consequently, during the second quarter of 2008,
the company will record a non-cash impairment charge of
approximately US$1.1 to US$1.2 billion to write these and
certain related long-lived assets down to their estimated fair
value.  No portion of the impairment charge will result in
future cash expenditures.

The company expects to record other accounting charges relating
to the capacity reductions, such as  other disposal costs and
other associated costs, but cannot at this time reasonably
estimate the amount and timing of these charges or the portion,
if any, of these charges that would result in future cash
expenditures.

The Troubled Company Reporter related on July 1, 2008, that the
pilots of American Eagle Airlines Inc., a wholly owned
subsidiary of AMR, represented by the Air Line Pilots
Association, Int'l, have reached an agreement with American
Eagle management to preserve pilot jobs and reduce pilot
furloughs.  These include voluntary leaves of absences and part-
time flying.

                         About AMR Corp.

Headquartered in Forth Worth, Texas, AMR Corporation (NYSE:
AMR) operates with its principal subsidiary, American Airlines
Inc. -- http://www.aa.com/-- a worldwide scheduled
passenger airline.  At the end of 2006, American provided
scheduled jet service to about 150 destinations throughout North
America, the Caribbean, Latin America, including Brazil, Europe
and Asia.  American is also a scheduled airfreight carrier,
providing freight and mail services to shippers throughout its
system.

Its wholly owned subsidiary, AMR Eagle Holding Corp., owns two
regional airlines, American Eagle Airlines Inc. and Executive
Airlines Inc., and does business as "American Eagle."  American
Beacon Advisors Inc., a wholly owned subsidiary of AMR, is
responsible for the investment and oversight of assets of AMR's
U.S. employee benefit plans, as well as AMR's short-term
investments.

                         *     *     *

As reported in the Troubled Company Reporter-Latin America on
March 26, 2008, Standard & Poor's Ratings Services revised its
outlook on the long-term ratings on AMR Corp. (B/Negative/B-3)
and subsidiary American Airlines Inc. (B/Negative/--) to
negative from positive.  S&P also lowered its short-term rating
on AMR to 'B-3' from 'B-2' and affirmed all other ratings on AMR
and American.

                 Likely Bankruptcy Filing This Year

As reported in the Troubled Company Reporter on June 5, 2008,
AMR Corp., parent of American Airlines, is considered a possible
chapter 11 candidate and could tumble over into chapter 11
bankruptcy this year, Stockhouse.com said, citing record prices
in oil.

AMR has said report of possible bankruptcy filing is unfounded.

Stockhouse.com noted that although AMR is the world's largest
airline, it is now a small cap stock, with a market value of
only US$1.8 billion.  The report also notes that AMR has US$9.3
billion in debt and may not have the money to cover its debt
service as the year passes.

The TCR said on May 26, 2008, Jamie Baker, an analyst at J.P.
Morgan, said U.S. airline industry stands to post a collective
US$7,200,000,000 in operating losses in 2008.  The results would
be wider than an initial forecast of US$4,600,000,000 loss, the
analyst said.

Mr. Baker, in his research note, said though investors,
management and analysts may talk about airlines acting
collectively to reduce capacity to firm up revenue, the reality
is that they are more likely to dig in and try to outlast each
other.

U.S. Airways has the highest risk of bankruptcy, followed by
Northwest Airlines, United Air Lines' parent UAL Corp., AMR
Corp., JetBlue, Continental Airlines, AirTran, Delta Air Lines,
Alaska Air Lines and Southwest Airlines.


BANCO NACIONAL: Grants BRL539.7 Mil. Loan for Siderurgica Barra
---------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social SA has
approved a BRL539,7 million financing for Siderurgica Barra
Mansa, belonging to Grupo Votorantim, to implement its Unit II,
in the city of Resende, in Rio de Janeiro, capable of producing
1 million tons of long steel per year.  The loan corresponds to
45% of the total amount invested: BRL1.2 billion.  The new
project will generate 700 new direct jobs.

The project financed by the Bank will allow the steel company to
achieve state-of-the-art level in terms of technology.  Commonly
called mini mill, the new semi-integrated plant will produce
steel using an electric furnace based on scrap iron and pig
iron, delivering continuous billet casting, wire rod and iron
rods for civil construction.

In order to provide proper qualification to the personnel
intended to work in the operation of the new plant in Resende,
the company, together with SENAI-RJ, will develop several
training and specialization projects focused on workforce,
and trainee and internship programs.  Estimate investments for
this project may reach BRL3.6 million, involving welding,
maintenance, steelmaking, rolling, logistics, and others.

Siderurgica de Barra Mansa has been improving its production
processes since 2002, when it completed the upgrades in rod and
bar rollers.  From 2003 to 2006, the company constructed a new
line of continuous casting, introduced the production of new
products, such as screens and lattices.  In 2007, the steel
business unit of Votorantim Metais acquired the shareholding
control of AcerIas Paz Del Rio, in Colombia.

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.


BRASKEM SA: Posts BRL547.6MM Consolidated Net Income in 2007
------------------------------------------------------------
Braskem S.A. and its subsidiaries booked a consolidated net
income of BRL547.6 million in 2007, more than five times the
BRL101.3 million earned in 2006, the company's Form 20-F filed
with the U.S. Securities and Exchange Commission shows.

Consolidated net sales revenues in 2007 increased 36% to
BRL17.7 billion from that of 2006.  With cost of sales and
services for the year totaling BRL14.4 billion, the company
reported a consolidated gross profit of BRL3.2 billion.

Braskem's consolidated balance sheet as of Dec. 31, 2007, shows
total assets of BRL20.9 billion, total liabilities of
BRL14.6 billion, deferred income of BRL25.2 million, minority
interests of BRL598 million, total shareholders' equity of
BRL5.8 billion.    

A full-text copy of the company's 2007 annual report on Form 20-
F is available for free at the U.S. SEC at:

            http://ResearchArchives.com/t/s?2f0c

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

                           *     *    *

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

TCR-LA reported on Dec. 10, 2007, that Standard & Poor's raised
Braskem's long-term corporate credit to 'BB+' from 'BB'.  

On Nov. 28, 2007, Moody's Investors Service assigned the company
a corporate family rating of Ba1 on the agency's global scale.


CENTRAIS ELETRICAS: To be Major Shareholder in 3 Nuclear Plants
---------------------------------------------------------------
Centrais Eletricas Brasileiras SA will be the majority
shareholder of the Brazilian government's planned three nuclear
powers plants, Reuters reports.

Reuters relates that Brazil's  Mines and Energy Minister Edison
Lobao has said the government will commission three new nuclear
plants in the coming 12 months.  "We are projecting three more
nuclear power plants that should be licensed within one year or
slightly more," Minister Lobao told reporters at an event in Sao
Paulo.  According to him, the plants would be built mainly in
Brazil's northeast and in the center-south.  Reuters notes that
the government has indicated that up to eight nuclear plants
could be constructed in Brazil by 2030.

The government is considering letting private companies own
stakes in the plants, Reuters says, citing Minister Lobao.

Centrais Eletricas Brasileiras SA, a.k.a. Eletrobras, operates
in the electric power sector in Brazil.  The objective of
Eletrobras is to perform activities involving studies, projects,
construction and operation of electric power plants,
transmission and distribution lines as well as underlying trade
operations arising therefrom.  Eletrobras is tasked with the
preparation of studies and with drawing up construction projects
for hydroelectric generation, transmission lines and substations
to supply Brazil.  It engages areas involving granting loans and
financing, providing guarantees, locally or abroad, and
acquiring debentures of companies and holders of public electric
power services under their control; providing loans and
guarantees, locally or abroad, for technical and scientific
research institutions; and promoting and supporting researches
relating to the power sector, linked to the generation,
transmission and distribution of electric power.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
May 22, 2007, Standard & Poor's Ratings Services raised its
long-term foreign currency counterparty credit rating on
Centrais Eletricas Brasileiras S.A. aka Eletrobras to 'BB+' from
'BB'. S&P said that outlook is positive.


FIDELITY NAT'L: LPS Spin-Off Cues Moody's to Confirm Ba1 Ratings
----------------------------------------------------------------
Moody's Investors Service has confirmed Fidelity National
Information Services' Ba1 corporate family rating and assigned a
stable rating outlook.  This rating confirmation concludes the
review for further possible downgrade initiated on Oct. 25,
2007, which was prompted by the company's announcement that the
company planned to spin-off its Lender Processing Services (LPS)
division into a separate publicly traded company.  The LPS spin-
off was completed on July 2, 2008.

Concurrently, Moody's confirmed the Ba1 ratings to Fidelity's
US$2.1 billion Term Loan A, US$900 million revolving credit
facility, and US$200 million Senior secured (Certegy) notes due
September 2008.  In addition, Moody's withdrew its Ba1 rating on
the US$1.6 billion Term Loan B which has been assigned to LPS
and will be zubsequently refinanced upon the spin-off.  The
ratings reflect the company's probability of default rating of
Ba1 and loss given default assessments as reflected below.

Fidelity's Ba1 corporate family rating reflects the company's
leading market position within the core bank processing market,
its diversity of financial institution clients including top
tier banks, and its substantial size in terms of pretax income
compared to similarly ranked peers.  At the same time, the
rating is constrained by the company's leverage as measured by
free cash flow to debt, reduced business line diversity after
the spin-off of LPS, lower return on assets than similarly rated
peers, and propensity to grow through acquisitions.  The factors
cited in Moody's Global Business Services Industry Rating
Methodology map to an overall Ba1 rating, which is consistent
with the Ba1 CFR.

The short term liquidity rating of SGL-2 reflects the company's
good internal and external liquidity following the spin-off of
LPS, which includes a cash balance of over US$200 million and
expected free cash flow of more than US$200 million for 2008.  
The company's cash flow should be sufficient to fund necessary
capital expenditures, working capital requirements, and
mandatory debt amortization over the next twelve months.  The
company has adequate external liquidity in the form of its
US$900 million revolving credit facility (expires 2012), of
which approximately US$500 million was drawn at March 31, 2008.  
Moody's expects the company to fund the repayment of its US$200
million Certegy senior unsecured notes using cash and its
revolver.  Moody's expects the company to maintain compliance
with its two financial covenants, a debt-to-EBITDA leverage test
and an interest coverage ratio.

The stable outlook reflects Moody's expectation the company will
continue to generate mid-single digit organic revenue growth,
supporting its free cash flow which will be used for debt
reduction.  Despite the challenging economic environment facing
United States financial institutions, Moody's expects the
company's performance to remain steady over the intermediate
term given its recurring revenue model secured by long-term
customer contracts and ongoing customer demand for its core
processing services in a cost-cutting environment.

The Ba1 CFR could experience upward rating pressure if the
company were to continue to demonstrate organic revenue growth
and profitability such that its financial leverage, as measured
by debt to EBITDA were less than 3.0 on a sustained basis.  
Additional financial leverage or a decline in profitability,
such that debt to EBITDA were to exceed 4.0 on a sustained
basis, would put downward pressure on the ratings.

Ratings confirmed/assessments revised:

  -- Corporate Family Rating - Ba1

  -- Probability of Default Rating -- Ba1

  -- US$2.1 billion First Lien Senior Secured Term Loan A - Ba1,
     LGD 3, (47% from 48%)

  -- US$900 million First Lien Senior Revolving Credit Facility
     - Ba1, LGD 3, (47% from 48%)

  -- US$200 million 4.75% (Certegy) notes due September 2008 -
     Ba1, LGD 3, (47% from 48%)

  -- Speculative Grade Liquidity Rating -- SGL-2

Rating withdrawn:

  -- US$1.6 billion First Lien Senior Secured Term Loan B - Ba1,
     LGD 3, 48%

Based in Jacksonville, Florida, Fidelity National Financial,
Inc. (NYSE:FNF) -- http://www.fnf.com/-- provides title
insurance, specialty insurance, claims management services and
information services.  FNF is one of the nation's largest title
insurance companies through its title insurance underwriters --
Fidelity National Title, Chicago Title, Ticor Title, Security
Union Title and Alamo Title -- that issue approximately 28% of
all title insurance policies in the United States.  FNF also
provides flood insurance, personal lines insurance and home
warranty insurance through its specialty insurance business.
FNF also provides outsourced claims management services to large
corporate and public sector entities through its minority-owned
subsidiary, Sedgwick CMS.  FNF is also an information services
company in the human resource, retail and transportation markets
through another minority-owned subsidiary, Ceridian Corporation.

FIS maintains a strong global presence, serving over 7,800
financial institutions in more than 60 countries worldwide,
including Brazil, Chile and Japan.


FIDELITY NAT'L: S&P Lifts Corporate Credit Rating to BB+ From BB
----------------------------------------------------------------
Standard & Poor's Ratings Services has raised its corporate
credit rating on Fidelity National Information Services Inc. to
'BB+' from 'BB'.  At the same time, S&P removed the ratings from
CreditWatch, where they had been placed with developing
implications on April 28, 2008.  The outlook is stable.
     
S&P withdrew its bank loan and recovery ratings on Fidelity's
US$1.6 billion secured term loan B facility.  That debt is being
retired by the company in conjunction with the spin-off of its
Lender Processing Services segment, now a public company known
as Lender Processing Services Inc. (LPS).
     
S&P also raised the issue-level rating on the company's
outstanding US$200 million 4.75% secured notes due 2008 to 'BBB'
from 'BB+'. S&P revised the recovery rating on these notes to
'1', indicating the expectation for very high (90% to 100%)
recovery in the event of a payment default, from '2'.  S&P
raised the issue-level rating and revised the recovery rating
because Fidelity eliminated a substantial amount of secured debt
by retiring its term loan B.
     
"The upgrade reflects FIS' good operating performance in its
transaction processing services, which includes the recently
acquired eFunds," said S&P's credit analyst Philip Schrank.
     
Despite a reduction in business diversity and cash flow after
the spin-off of its LPS unit (which accounted for about 40% of
consolidated EBITDA), pro forma debt leverage will decline to
about 3.0 from the mid-3.0 area following the transaction.
Although the company has expanded aggressively through
acquisitions in the past five years, S&P expects a more modest
pace going forward, with an emphasis placed on organic growth
and debt reduction in the near term.

Based in Jacksonville, Florida, Fidelity National Financial,
Inc. (NYSE:FNF) -- http://www.fnf.com/-- provides title
insurance, specialty insurance, claims management services and
information services.  FNF is one of the nation's largest title
insurance companies through its title insurance underwriters --
Fidelity National Title, Chicago Title, Ticor Title, Security
Union Title and Alamo Title -- that issue approximately 28% of
all title insurance policies in the United States.  FNF also
provides flood insurance, personal lines insurance and home
warranty insurance through its specialty insurance business.
FNF also provides outsourced claims management services to large
corporate and public sector entities through its minority-owned
subsidiary, Sedgwick CMS.  FNF is also an information services
company in the human resource, retail and transportation markets
through another minority-owned subsidiary, Ceridian Corporation.

FIS maintains a strong global presence, serving over 7,800
financial institutions in more than 60 countries worldwide,
including Brazil, Chile and Japan.


GENERAL MOTORS: Bankruptcy 'Not Impossible,' Merrill Lynch Says
---------------------------------------------------------------
Merrill Lynch analyst John Murphy said a bankruptcy filing for
General Motors Corp. is not impossible "if the market continues
to deteriorate and significant incremental capital is not
raised," various reports say.

Mr. Murphy, in a research note, said GM will need to raise
US$15,000,000,000 in capital to fund its operations for the next
two years.  The amount is more than the between US$5,000,000,000
and US$10,000,000,000 analysts had previously forecast, Ed
Welsch and Cynthia Koons at Dow Jones Newswires say.

Mr. Murphy, according to the reports, warned GM is burning
through cash faster than investors realize.  Mr. Murphy said GM
may raise the US$15,000,000,000 from existing credit facilities
and through a combination of secured debt, asset sales or even
by borrowing from the United Auto Worker's independent trust
created to fund retiree health care.

In his post at MLive.com, Rick Haglund, citing an industry
expert, said GM could file for Chapter 11 for its North American
operations, similar to what Delphi Corp. did in 2005.  Mr.
Haglund said GM is profitable and growing in every other region
of the world in which it operates.

According to Dow Jones, Shelly Lombard, an auto analyst at Gimme
Credit, said while GM may need additional liquidity, some of the
money required may just be cash for an "emotional security
blanket" to assuage investors' anxiety.

Dow Jones also says GM could secure some of its more profitable
international operations to issue debt against.

According to Dow Jones, Kingman Penniman, president of KDP
Investment Advisors, pointed out that GM's existing term loans
outstanding are securitized by primarily domestic property,
plant and equipment.  "I don't know how much is left there as a
cushion.  We have the impression most of their foreign assets
have not been securitized for a debt package," Dow Jones quotes
Mr. Penniman as saying.

David Welch, in his post at BusinessWeek, noted that GM's stock
is trading at under US$10 a share and that the company's market
capitalization is roughly US$5,700,000,000.  Mr. Welch said
certain investors could buy control of GM for less than
US$3,000,000,000, pointing out that billionaire investor Kirk
Kerkorian could come up with that money, since he tabled a
US$4,500,000,000 bid for Chrysler LLC last year.  Mr. Kerkorian
is already invested in Ford, and hence not a candidate for a run
at GM, Mr. Welch added.

Dow Jones notes that, in its most recent earnings report, GM's
pretax earnings from international results -- helped by growth
in Asia and Latin America -- nearly doubled to US$1,000,000,000,
while its pretax losses in North America quadrupled to
US$812,000,000.

                    About General Motors

Based 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.  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.   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.

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.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America
June 30, 2008, Fitch downgraded the Issuer Default Rating of
General Motors Corporation to 'B-' from 'B', and assigned a
Rating Outlook Negative.  The downgrade results from weak
economic conditions, the dramatic shift to fuel efficient
vehicles and the resulting cash drains at GM that are expected
to persist at lest through 2009.  Fitch expects that cash drains
in 2008 will exceed US$10 billion, and that new financing
activity will be required over the next 18 months to keep GM's
cash position above the minimum comfort level of US$12 - US$14
billion.

As reported in the Troubled Company Reporter-Latin America on
June 25, 2008, DBRS has placed the ratings of General Motors
Corporation and General Motors of Canada Limited Under Review
with Negative Implications.  The rating action reflects the
structural deterioration of the company's operations in North
America brought on by high oil prices and a slowing U.S.
economy.

Standard & Poor's Ratings Services 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.


GOL LINHAS AEREAS: Provides Updates to Investors
------------------------------------------------
GOL Linhas Aereas Inteligentes S.A., the parent company of GOL
Transportes Aereos S.A. and VRG Linhas Aereas S.A., has provided
updates to investors.

                      Current News

GOL and VRG have recently added service to the following city
pairs:

GTA-City Pair                      Weekly Freq.     Start Date
--------------------------------------------------------------   
Brasilia - Recife                       7x           12-may-08
Recife - Juazeiro do Norte              7x           12-may-08
Juazeiro do Norte - Recife              7x           12-may-08
Recife - Brasilia                       7x           12-may-08
Sao Paulo/Guarulhos - Brasilia          7x            2-jun-08
Brasilia - Porto Velho                  7x            2-jun-08
Porto Velho - Rio Branco                7x            2-jun-08
Rio Branco - Brasilia                   7x            2-jun-08
Brasilia - Sao Paulo/Guarulhos          7x            2-jun-08


VRG-City Pair                      Weekly Freq.     Start Date
--------------------------------------------------------------   
Sao Paulo/Guarulhos - Recife            7x            7-apr-08
Recife - Sao Paulo/Guarulhos            7x            8-apr-08
Sao Paulo/Guarulhos - Manaus            7x            9-jun-08
Manaus - Sao Paulo/Guarulhos            7x            9-jun-08

For further details, visit: http://www.voegol.com.brand  
http://www.varig.com

                          General Guidance

General Comments 2Q08E:

  -- Brazilian domestic demand growth at 1.8x GDP
  -- Brazilian 2Q08e GDP Growth  at 5.2%
  -- Brazilian 2Q08e Domestic RPK Growth at 10.4%


Industry Metrics                     1Q08A(+/-)      2Q08E(+/-)
---------------------------------------------------------------
Brazilian GDP Growth(%)                 5.8             5.2
Domestic RPK Growth(%)                 10.2            10.4
Brazilian Inflation(%,IPCA)             6.1             6.6
BRL/US$ (BRL,average)                  1.74            1.65
WTI (US$,average)                        98             124

    2Q08E

General Comments:

  -- Average fuel price/liter: BRL2.12
  -- Average Fare: BRL194
  -- CASK: BRL16.5e cents
  -- RASK: BRL13.5e cents

Consolidated      1Q08A(+/-)  2Q08G(+/-)  2Q08E(+/-)  Q07A(+/-)
---------------------------------------------------------------
ASK Growth             58%         25%        23%         87%
Load Factor            62%      61-63%     64-65%         66%
Yield(cents)         BRL22       BRL20      BRL19       BRL18
Cask ex-fuel(cents) BRL8.8      BRL8.5     BRL9.4      BRL8.6

Available Seat Kilometers by Aircraft Type         2Q08
                                              (quarter average)
                                              B737         B767
--------------------------------------------------------------
ASK - as a  percentage of total ASKs (%)     85%          15%

GOL's average stage length is projected to be approximately 940
kilometers in 2Q08 versus 958 kilometers in the second quarter
of 2007.

                    Aircraft Delivery Schedule

As of March 31, 2008, GOL's fleet was comprised of 103 Boeing
737 aircraft and 11 Boeing 767s and had on order 99 aircraft
with options to acquire additional 40 aircraft.  The 2008
delivery schedule and related financings are:

B737-800 SFP firm                        Committed Financing
                               Mortgage(Exim)     Sale/Leaseback
---------------------------------------------------------------
     2Q08                            2                   0
     2008E                           5                   4

During the second quarter, GOL received into its consolidated
fleet 2 Boeing 737 aircraft, and returned 3 Boeing 737-300s and
one 767-300.

                           Fuel Hedges

The company continues to enter into advanced fuel derivative
agreements to reduce its exposure to fluctuations in fuel price.
Currently, the agreements covering 2008 are:

                                           Second Quarter 2008
  ------------------------------------------------------------
  Estimated Fuel Liters Consumed(mm)                357
  Estimated Fuel Price per Liter(BRL)              2.12

                                           150 million (42%)
  Liters(% of estimated consumption)    HO and WTI with average
                                          price of US$95.6/bbl

   Operating Margin                Second Quarter 2008
   ---------------------------------------------------
   Estimated Operating Margin(%)          -23-21%


   Income Before Income Taxes      Second Quarter 2008
   ---------------------------------------------------
   Estimated Pre-Tax Margin(%)            -19-17%

                           Tax Rate

GOL currently expects an annual effective tax rate in U.S.
GAAP of approximately 25%.  However, its actual tax rate in both
2Q and full year 2008 could differ due to the non-deductibility
of certain items for tax purposes.

               Weighted Average Shares Outstanding

Share count estimates for calculating basic and diluted earnings
per share are:

                 Second Quarter 2008
         Basic                        Diluted
         ------------------------------------
         201.2mm                      201.2mm

The number of shares used in our actual earnings per share
calculations will likely be different from those stated above.

                         About GOL

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

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 23, 2008, Fitch Ratings has downgraded these credit ratings
of Gol Linhas Aereas Inteligentes SA:

  -- Foreign and Local Currency long-term Issuer Default Ratings
     to 'BB' from 'BB+';

  -- US$200 million of perpetual notes to 'BB' from 'BB+;

  -- US$200 million seniors note due to 2017 to 'BB' from 'BB+;

  -- Long-term National rating to 'A+(bra)' from 'AA-(bra).

Fitch has revised the rating outlook to negative.

TCR-Latin America reported on May 29, 2008 that Moody's
Investors Service has downgraded all debt ratings of Gol Linhas
Aereas Inteligentes S.A. including corporate family rating to
Ba3 from Ba2 and downgraded the senior unsecured debt of Gol
Finance to Ba3 from Ba2.  The outlook has been changed to
negative from stable.


HEXION SPECIALTY: Huntsman Wants Merger Deal Extended to Oct. 2
---------------------------------------------------------------
Huntsman Corporation's board of directors, unanimously,
provisionally authorized Huntsman Corp. to exercise its right to
extend the merger agreement with Hexion Specialty Chemicals Inc.
by an additional ninety days to Oct. 2, 2008, as permitted by
the terms of the merger agreement.  Huntsman expects to deliver
a formal notice of the extension to Hexion on July 4, 2008.

Huntsman also filed its answer and counterclaims to the Hexion
suit in Delaware and has asked the court to expedite the
proceedings, including by granting expedited discovery and
trial.

Huntsman asked the Delaware court to declare that the premature
and inappropriately released Duff & Phelps opinion does not
excuse Hexion from its obligations, that it will in fact be
possible to provide Hexion's lenders with assurance of solvency,
and to declare that no material adverse effect has occurred
under the merger agreement.  Huntsman asked the court to enjoin
Hexion from continuing to breach the merger agreement and to
order Hexion to specifically perform its obligations under the
merger agreement.

The counterclaims made by Huntsman in the filing include breach
of contract, breach of good faith and fair dealing, defamation,
injurious falsehood, and commercial disparagement, among others.

"After actively evaluating the situation, our board has
concluded that if Apollo Management L.P causes Hexion to honor
its contractual obligations, Hexion will obtain the antitrust
approvals and the merger can and will close by Oct. 2, 2008,"
Peter Huntsman, president and CEO, stated.  "Apollo and Hexion
continue to assert their ongoing intention that Hexion will do
the work necessary to complete the transaction, and we are
asking the Delaware court to make those more than hollow words."

"I have been deeply disappointed in the actions of Leon Black
and Josh Harris these past two weeks," Jon M. Huntsman, founder
and chairman of Huntsman Corporation, added.  

However, I believe, as does the rest of our board, that all of
the conditions to closing this merger can and will be satisfied,
and that the conditions to Hexion's commitment letter with its
lenders can and will be satisfied as well," Mr. Huntsman stated.  
"As I have said repeatedly, we will take every available action
on behalf of our shareholders to cause Hexion to live up to the
merger agreement."

                             The Deal

As reported by the Troubled Company Reporter on July 13, 2007,
Huntsman Corporation agreed to a definitive merger agreement
with Hexion Specialty Chemicals Inc., pursuant to a transaction
with a total value of approximately US$10.6 billion, including
the assumption of debt.

Under the terms of the agreement, Hexion will acquire all of the
outstanding common stock of Huntsman for US$28 per share in
cash. The agreement also provides that the cash price per share
to be paid by Hexion will increase at the rate of 8% per annum
beginning 270 days from July 12, 2007.

Huntsman has terminated the merger agreement with Basell AF
believing that the Hexion transaction was a superior proposal.  
The Hexion deal was unanimously approved by the board of
directors of Huntsman.  

The transaction is subject to customary closing conditions,
including regulatory approval in the U.S. and in Europe, well as
the approval of Huntsman shareholders.  Entities controlled by
MatlinPatterson and the Huntsman family and a Huntsman
charitable trust, who collectively own approximately 57% of
Huntsman's common stock, have agreed to vote in favor of the
transaction.

The transaction is not subject to a financing condition and
commitments have been obtained by Hexion for all necessary debt
financing from affiliates of Credit Suisse and Deutsche Bank AG.  
Hexion will have up to 12 months, subject to a 90 day extension
by the Huntsman board under certain circumstances, to close the
transaction.

Merrill Lynch & Co. and Cowen and Company LLC acted as financial
advisors to Huntsman.  Vinson & Elkins L.L.P. and Shearman and
Sterling LLP acted as legal advisors to Huntsman.

                Extension of Merger Termination Date

On Jan. 29, 2008, the TCR reported that Hexion informed Huntsman
that it will exercise its right to extend the termination date
by 90 days from April 5 to July 4, 2008.  

On April 5, 2008, Hexion Specialty Chemicals Inc. exercised an
option under its merger agreement with Huntsman Corporation
dated as of July 12, 2007, extending the merger agreement
termination date by 90 days, to 5:00 p.m. Houston time on
July 4, 2008.

                 Hexion's Lawsuit to Cancel Merger

On June 19, 2008, the TCR reported that Hexion and related
entities filed a suit in the Delaware Court of Chancery to
cancel the agreement.  Hexion said in the suit that it believes
that the capital structure agreed to by Huntsman and Hexion for
the combined company is no longer viable because of Huntsman's
increased net debt and its lower than expected earnings.  

While both companies individually are solvent, Hexion believes
that consummating the merger on the basis of the capital
structure agreed to with Huntsman would render the combined
company insolvent.

                       Comments and Responses

Hexion said that the company and Apollo Management L.P. received
a
letter from Peter Huntsman, Huntsman Corporation's president and
CEO, stating that their actions were inconsistent with the terms
of themerger agreement.  

Huntsman is violating its obligations to Huntsman Corp. by
seeking to cancel the transaction, Bloomberg relates according
to Mr. Huntsman.  Mr. Huntsman reportedly stated that the
actions appear to be a blatant attempt to deprive its
shareholders of the benefits of the Merger Agreement that was
agreed to nearly a year ago.

                       Huntsman's Countersuit

Reports say Huntsman has filed a countersuit against Apollo
Management and two of its founders in Texas state court,
alleging interference with its merger with Hexion Specialty
Chemicals, an Apollo company.  Huntsman is seeking a jury trial
in Texas to determine liability for "actual damages exceeding
USD 3 bn," plus exemplary damages," according to Plasteurope
(Germany).

In response, Hexion said: "It is unfortunate that Huntsman has
chosen to file a baseless lawsuit against Apollo and to
personally sue two of its principals.  Huntsman's Texas suit
violates a clear provision of the merger agreement which
requires that any litigation be brought exclusively in the State
of Delaware.  As we alleged in our suit, due to Huntsman's
underperformance, we believe that consummating the merger on the
basis of the capital structure agreed to with Huntsman would
render the combined company insolvent.  In fact, Huntsman's suit
does not dispute that the combined company would be insolvent.  
We believe Huntsman's lawsuit is wholly without merit."

                   About Huntsman Corporation
  
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.  The Company had 2007
revenues of approximately US$10 billion.

                     About Hexion Specialty

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.

Outside the United States, the company has regional headquarters
in: China through Hexion Specialty Chemicals Singapore Pte Ltd.;
Australia through Hexion Specialty Chemicals Australia Pty.; the
Netherlands through Hexion Specialty Chemicals B.V.; and in
Brazil through Hexion Quimica Industria e Comercio Ltda.

As of March 31, 2008, Hexion’s balance sheet showed a
shareholders’ deficit of US$1,357,000,000.


ZIM CORP: Grant Thornton Expresses Going Concern Doubt
------------------------------------------------------
Raymond Chabot Grant Thornton LLP raised substantial doubt on
the ability of ZIM Corporation to continue as a going concern
after it audited the company's financial statements for the year
ended March 31, 2008.  

The auditor disclosed that the company has an accumulated
deficit of US$21,455,824 and generated negative cash flows from
operations of US$315,458 during the year ended March 31, 2008.
The company also has generated negative cash flows from
operations during four of the previous five years.

The company posted a net income of US$82,536 on total revenues
of US$2,068,065 for the year ended March 31, 2008, as compared
with a net loss of US$1,936,187 on total revenues of
US$2,195,184 in the prior year.

At March 31, 2008, the company's balance sheet showed
US$1,159,150 in total assets, US$563,932 in total liabilities
and US$595,218 in total stockholders' equity.

A full-text copy of the company's 2008 annual report is
available for free at http://ResearchArchives.com/t/s?2eda

                          About ZIM Corp.

Ottawa, Canada-based ZIM Corporation (OTC BB: ZIMCF) --
http://www.zim.biz/-- is a mobile content, Enterprise Database    
Software and Internet TV service provider.  Through its global
infrastructure, ZIM provides publishing and licensing services
for market-leading mobile content and for Internet TV
broadcasting.  The company has offices in Brazil and London.


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

DENALI CAPITAL: Deadline for Proofs of Claim Filing Is July 9
-------------------------------------------------------------
Denali Capital CLO III Ltd.'s creditors have until July 9, 2008,
to prove their claims toGriffin 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.

Denali Capital's shareholder decided on May 30, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

                 Griffin Management Limited
                 c/o Caledonian Trust (Cayman) Limited
                 Caledonian House, 69 Dr. Roy's Drive
                 P.O. Box 1043, Grand Cayman,
                 Cayman Islands

Contact for inquiries:

                 Janeen Aljadir
                 Telephone: (345) 914 -4943
                 Fax: (345) 814-4859


FOCUS CAPITAL: Proofs of Claim Filing Deadline Is July 9
--------------------------------------------------------
Focus Capital Investors Ltd.'s creditors have until July 9,
2008, to prove their claims to Simon Whicker and Kris Beighton,
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.

Focus Capital's shareholder decided on May 21, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

                 Simon Whicker and Kris Beighton
                 c/o KPMG, P.O. Box 493,
                 Century Yard, Cricket Square,
                 Grand Cayman, Cayman Islands
                 Telephone: 345-949-4800
                 Fax: 345-949-7164

Contact for inquiries:

                 Gundega Tamane
                 Telephone: 345-914-4309
                 Fax: 345-949-7164


FOCUS CAPITAL INVESTORS: Claim Filing Deadline Is July 9
--------------------------------------------------------
Focus Capital Investors Master Fund Ltd.'s creditors have until
July 9, 2008, to prove their claims to Simon Whicker and Kris
Beighton, 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.

Focus Capital Investors' shareholder decided on May 20, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

                 Simon Whicker and Kris Beighton
                 c/o KPMG, P.O. Box 493,
                 Century Yard, Cricket Square,
                 Grand Cayman, Cayman Islands
                 Telephone: 345-949-4800
                 Fax: 345-949-7164

Contact for inquiries:

                 Gundega Tamane
                 Telephone: 345-914-4309
                 Fax: 345-949-7164


INFOR CAYMAN SUBCO: Deadline for Claims Filing Is Until July 9
--------------------------------------------------------------
Infor Cayman Subco Ltd.'s creditors have until July 9, 2008, to
prove their claims to Simon Whicker and Keith Blake, 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.

Infor Cayman's shareholder decided on May 27, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidators can be reached at:

                 Simon Whicker and Keith Blake
                 P.O. Box 493, Grand Cayman,
                 Cayman Islands
                 Telephone: 345-949-4800
                 Fax: 345-949-7164

Contact for inquiries:

                 Gundega Tamane
                 Telephone: 345-914-4309
                 Fax: 345-949-7164


INFOR INTERNATIONAL: Claim Filing Deadline Is Until July 9
----------------------------------------------------------
Infor International Ltd.'s creditors have until July 9, 2008, to
prove their claims to Simon Whicker and Keith Blake, 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.

Infor International's shareholder decided on May 27, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

                 Simon Whicker and Keith Blake
                 P.O. Box 493, Grand Cayman,
                 Cayman Islands
                 Telephone: 345-949-4800
                 Fax: 345-949-7164

Contact for inquiries:

                 Gundega Tamane
                 Telephone: 345-914-4309
                 Fax: 345-949-7164


INFOR LIMITED: Deadline for Proofs of Claim Filing Is July 9
------------------------------------------------------------
Infor Limited's creditors have until July 9, 2008, to prove
their claims to Simon Whicker and Keith Blake, 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.

Infor Limited's shareholder decided on May 27, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

                 Simon Whicker and Keith Blake
                 P.O. Box 493, Grand Cayman,
                 Cayman Islands
                 Telephone: 345-949-4800
                 Fax: 345-949-7164

Contact for inquiries:

                 Gundega Tamane
                 Telephone: 345-914-4309
                 Fax: 345-949-7164


NVIDIA CORP: Lower Sales Forecast Spurs 20% Share Price Plunge
--------------------------------------------------------------
Bloomberg News reports that NVIDIA Corp.'s share price in the
stock market dropped 20% following a company press release
stating that NVIDIA has decreased the estimates of its revenue
and gross margin due to several reasons: end-market weakness
around the world, the delayed ramp of a next generation MCP, and
price adjustments of its GPU products to respond to competitive
products.  Total revenue is now estimated to be from
US$875 million to US$950 million.

NVIDIA's shares tumbled US$3.53 to US$14.50 after the U.S.
Exchanges closed on Wednesday.

NVIDIA plans to take a one-time charge from US$150 million to
US$200 million against cost of revenue for the second quarter to
cover anticipated warranty, repair, return, replacement and
other costs and expenses, arising from a weak die and packaging
material set in certain versions of its previous generation GPU
and MCP products used in notebook systems.  Certain notebook
configurations with GPUs and MCPs manufactured with a certain
die and packaging material set are failing in the field at
higher than normal rates.  To date, abnormal failure rates with
systems other than certain notebook systems have not been seen.  
NVIDIA has initiated discussions with its supply chain regarding
this material set issue and the company will also seek to access
insurance coverage for this matter.

"Although the failure appears related to the combination of the
interaction between the chip material set and system design, we
have a responsibility to our customers and will take our part in
resolving this problem," NVIDIA president and CEO Jen-Hsun Huang
stated.  "The GPU has become an increasingly important part of
the computing experience and we are seeing more interest by PC
OEMs to adopt GPUs in more platforms.  Recognizing that the GPU
is one of the most complex processors in the system, it is
critical that we now work more closely with notebook system
designers and our chip foundries to ensure that the GPU and the
system are designed collaboratively for the best performance and
robustness."

Today's high performance notebooks are highly complex systems
with extreme thermal environments.  The combination of limited
thermal management and frequent power cycling is particularly
challenging for complex processors like the GPU.

"This has been a challenging experience for us," Mr. Huang
added.  "However, the lessons we've learned will help us build
far more robust products in the future, and become a more
valuable system design partner to our customers.  As for the
present, we have switched production to a more robust
die/package material set and are working proactively with our
OEM partners to develop system management software that will
provide better thermal management to the GPU."

                          About NVIDIA

Headquartered in Santa Clara, California, NVIDIA Corp. (Nasdaq:
NVDA) -- http://www.nvidia.com/-- provides visual computing   
technologies and invented the GPU, a high-performance processor
which generates breathtaking, interactive graphics on
workstations, personal computers, game consoles, and mobile
devices.  NVIDIA serves the entertainment and consumer market
with its GeForce(R) products, the professional design and
visualization market with its Quadro(R) products, and the high-
performance computing market with its Tesla(TM) products.  
Outside the U.S., the company has subsidiaries  in these
countries; Canada, Cayman Islands, Singapore, Australia, the
United Kingdom, Germany, Hong Kong, Japan, Mauritius, India,  
China, British Virgin Islands, Finland and Netherlands.

                          *     *     *
       
Standard & Poor's Ratings Services assigned BB- long-term
foreign and local issuer credit ratings at December 2006.  The
ratings still apply.


PEGASUS FINANCE: Proofs of Claim Filing Deadline Is July 9
----------------------------------------------------------
Pegasus Finance Corp.'s creditors have until July 9, 2008, to
prove their claims to Sylvia Lewis and Isabel Mason, 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.

Pegasus Finance's shareholder decided on May 7, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

                 Sylvia Lewis and Isabel Mason
                 P.O. Box 1109, Grand Cayman,
                 Cayman Islands
                 Telephone: 345 949-7755
                 Fax: 345 949-7634


PEGASUS FINANCE: To Hold Final Shareholders Meeting on July 9
-------------------------------------------------------------
Pegasus Finance Corp. will hold its final shareholders meeting
on July 9, 2008, at the offices of HSBC Bank (Cayman) Limited,
P.O. Box 1109, 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.
    
Pegasus Finance's shareholders agreed on May 7, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

                 Sylvia Lewis and Isabel Mason
                 P.O. Box 1109, Grand Cayman,
                 Cayman Islands
                 Telephone: 345 949-7755
                 Fax: 345 949-7634


PREMIER AIRCRAFT: Proofs of Claim Filing Deadline Is July 9
-----------------------------------------------------------
Premier Aircraft Leasing's creditors have until July 9, 2008, to
prove their claims to Griffin 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.

Premier Aircraft's shareholder decided on May 30, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

                 Griffin Management Limited
                 c/o Caledonian Trust (Cayman) Limited
                 Caledonian House, 69 Dr. Roy's Drive
                 P.O. Box 1043, Grand Cayman,
                 Cayman Islands

Contact for inquiries:

                 Janeen Aljadir
                 Telephone: (345) 914 -4943
                 Fax: (345) 814-4859


REGULUS REAL ESTATE: Claim Filing Deadline Is Until July 9
----------------------------------------------------------
Regulus Real Estate Investment's creditors have until July 9,
2008, to prove their claims to Sylvia Lewis and Isabel Mason,
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.

Regulus Real Estate's shareholder decided on May 7, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

                 Sylvia Lewis and Isabel Mason
                 P.O. Box 1109, Grand Cayman,
                 Cayman Islands
                 Telephone: 345 949-7755
                 Fax: 345 949-7634


REGULUS REAL ESTATE: Sets Final Shareholders Meeting on July 9
--------------------------------------------------------------
Regulus Real Estate Investment will hold its final shareholders
meeting on July 9, 2008, at the offices of HSBC Bank (Cayman)
Limited, P.O. Box 1109, 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.
    
Regulus Real Estate's shareholders agreed on May 7, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

                 Sylvia Lewis and Isabel Mason
                 P.O. Box 1109, Grand Cayman,
                 Cayman Islands
                 Telephone: 345 949-7755
                 Fax: 345 949-7634


REGULUS REAL ESTATE CORP: Claim Filing Deadline Is on July 9
------------------------------------------------------------
Regulus Real Estate Investment Corp.'s creditors have until
July 9, 2008, to prove their claims to Sylvia Lewis and Isabel
Mason, 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.

Regulus Real Estate's shareholder decided on May 7, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

                 Sylvia Lewis and Isabel Mason
                 P.O. Box 1109, Grand Cayman,
                 Cayman Islands
                 Telephone: 345 949-7755
                 Fax: 345 949-7634


REGULUS REAL ESTATE CORP: Final Shareholders Meeting Is July 9
--------------------------------------------------------------
Regulus Real Estate Investment Corp. will hold its final
shareholders meeting on July 9, 2008, at the offices of HSBC
Bank (Cayman) Limited, P.O. Box 1109, 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.
    
Regulus Real Estate's shareholders agreed on May 7, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

                 Sylvia Lewis and Isabel Mason
                 P.O. Box 1109, Grand Cayman,
                 Cayman Islands
                 Telephone: 345 949-7755
                 Fax: 345 949-7634


SADUF FIVE: Deadline for Proofs of Claim Filing Is July 9
---------------------------------------------------------
Saduf Five Ltd.'s creditors have until July 9, 2008, to prove
their claims to Sylvia Lewis and Isabel Mason, 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.

Saduf Five's shareholder decided on May 6, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidators can be reached at:

                 Sylvia Lewis and Isabel Mason
                 P.O. Box 1109, Grand Cayman,
                 Cayman Islands
                 Telephone: 345 949-7755
                 Fax: 345 949-7634


SADUF SIX: Proofs of Claim Filing Deadline Is Until July 9
----------------------------------------------------------
Saduf Six Ltd.'s creditors have until July 9, 2008, to prove
their claims to Sylvia Lewis and Isabel Mason, 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.

Saduf Six's shareholder decided on May 6, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidators can be reached at:

                 Sylvia Lewis and Isabel Mason
                 P.O. Box 1109, Grand Cayman,
                 Cayman Islands
                 Telephone: 345 949-7755
                 Fax: 345 949-7634


TOKYO CRIMSON: Will Hold Final Shareholders Meeting on July 9
-------------------------------------------------------------
Tokyo Crimson Energy Holdings Corp. will hold its final
shareholders meeting on July 9, 2008, at 1:00 p.m, at CTC
Building, 2232 Roxas Boulevard, 1300 Pasay City, Philippines.

These matters will be taken up during the meeting:

   1) accounting of the wind-up process, and

   2) hearing any explanation that may be given by the
      liquidator.
  
Tokyo Crimson's shareholders agreed on May 20, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

                 Takao Onuki
                 CTC Building, 2232 Roxas Boulevard
                 1300 Pasay City, Philippines



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

BANCO INTERCONTINENTAL: Appeal Process Almost Complete
------------------------------------------------------
The appeal process on the ruling the Appellate Court's 3rd Penal
Chamber of the Dominican Republic made against Banco
Intercontinental S.A. officials is almost complete, DR1
Newsletter reports, citing Jorge Subero Isa, the chief justice
of the Supreme Court.

As reported in the Troubled Company Reporter-Latin America on
April 23, 2008, the appellate court upheld the 10-year prison
sentence against former Banco Intercontinental officials Marcos
Baez Cocco and Luis Alvarez Renta, in the bank's fraud case.  
The prosecution appealed the sentences against the Banco
Intercontinental officials and also appealed Vivian Lubrano del
Castillo's acquittal, seeking six years in prison.

DR1 notes that Ramon Baez Figueroa, a financier from the
Dominican Republic who is involved and indicted in the fraud
case, was initially sentenced to a 10-year imprisonment and
fined DOP2.5 million for breaching the General Banking Law (708-
65) and sections of the Monetary and Financial Law (183-02).  
The Court of Appeals requested to increase Mr. Figueroa's
imprisonment to 20 years for money-laundering.

"The Penal Chamber (of the Supreme Court) should rule within the
next 10 or 15 days," Hoy reporter Solange Batista quoted Mr.
Subero.  DR1 relates that under the Penal Process Code, the
Supreme Court will decide if it will hear the appeals.  Once the
court decides to do so, a date will be set for hearings.

Located in the Dominican Republic, Banco Intercontinental a.k.a.
Baninter collapsed in 2003 as a result of a massive fraud and a
resulting deficit of US$2.2 billion.  As a consequence, all of
its branches were closed.  The bank's current and savings
accounts holders were transferred to the bank's new owner --
Scotiabank.  The bankruptcy of Baninter was considered the
largest in world history, in relation to the Dominican
Republic's Gross Domestic Product.  The resulting deficit was
equal to 12% to 15% of the country's national GDP.  It costs
Dominican taxpayers DOP55 billion and resulted to the country's
worst economic crisis.



=================
G U A T E M A L A
=================

BRITISH AIRWAYS: Inks GBP54 Mln Deal to Acquire France's L'Avion   
----------------------------------------------------------------
British Airways plc has reached an agreement to buy French
airline L'Avion at a cost of GBP54 million, which covers the
purchase of the airline and GBP26 million of cash in its
business.

L'Avion is a privately owned airline that operates two Boeing
757 aircraft between Paris Orly and Newark airport.  Following
completion of the deal, expected this month, it will become a
British Airways' subsidiary and be integrated into OpenSkies,
the airline's new EU-U.S. subsidiary airline.

OpenSkies launched services on June 19 this year with daily
flights from Paris Orly to New York JFK that operate with a
L'Avion codeshare.  The combined airline will operate up to
three daily flights between Paris Orly and New York JFK/Newark
airports using three Boeing 757 aircraft.

British Airways' chief executive, Willie Walsh, said: "L'Avion
is a successful airline that has built up a premium business
between Orly and New York in a relatively short period of time.

"It has many synergies with OpenSkies and buying it provides
OpenSkies with a larger schedule and an established customer
base in the Paris-New York market."

Christophe Bejach, co-founder and chairman of L'Avion, said: "We
are happy to merge our operation with OpenSkies.  This
transaction will strengthen our current base and enable the
combined airline to grow faster and stronger.  Our staff will
benefit from the ambition and recognized expertise of the buyer
and our customers will have access to an even better service, on
a larger scale."

                    About British Airways

Headquartered in West Drayton, United Kingdom, British Airways
Plc -- http://www.ba.com/-- operates of international and
domestic scheduled and charter air services for the carriage of
passengers, freight and mail, and provides of ancillary
services.  The British Airways group consists of British Airways
plc and a number of subsidiary companies including in particular

British Airways Holidays Ltd. and British Airways Travel
Shops Ltd.  BA has offices in India and Guatemala.

                        *     *     *

British Airways Plc carries a senior unsecured debt rating of
Ba1 from Moody's Investors' Service with a stable outlook.  
Ratings apply to date.



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

AIR JAMAICA: Minister Names 4 Board Members to Remain in Airline
----------------------------------------------------------------
Richard Byles, Wilfred Bagaloo, Dennis Lalor, and Omar Parkins
will be retained as board members at Air Jamaica, Radio Jamaica
reports, citing Don Wehby, Minister Without Portfolio in the
Finance Ministry.

As reported in the Troubled Company Reporter-Latin America on
July 3, 2008,  Jamaican officials dismissed most of the 14-
member board at Air Jamaica, except for the airline's Executive
Director Shirley Williams.  She would have limited powers in Air
Jamaica.  

"I have found that working with Ms. Williams that she is an
extremely hard worker and she does a fairly good job.  Where we
have a change in the role Ms. Williams will play is that she was
a non-Executive Chairman but she was performing an Executive
role free of cost so what we are going to do is separate that
role of a non-Executive Chairman.  So she will be a non-
Executive Chairman and we will try to recruit a new CEO as soon
as possible," Radio Jamaica quoted Minister Wehby.

Radio Jamaica relates that the new board members include:

          -- Carolyn Hayle,
          -- Colin Steele,
          -- Christopher Berry, and
          -- Derrick Lattibeaudierre.

Minister Wehby reportedly mentioned that the airline has been
losing quite a bit of funds every month -- somewhere between
US$10 million and US$12 million.   According to Radio Jamaica,
the Minister told reporters, "The first thing the board has been
mandated to do is to stabilize the airline to reduce those
losses as best as possible.  The second thing is that they need
to restructure the airline to become more efficient and the
third thing is to divest the airline by March 2009.”

Radio Jamaica relates that up to four people are being
considered as candidates for the Chief Executive Officer
position.  RJR News notes that Minister Wehby mentioned Canadian
Airline Executive David Banmiller as one of the candidates up
for the post of president and CEO of Air Jamaica.

The report says that Mr. Banmiller was named Air Jamaica's
executive vice president and chief operating officer five years
ago.  He left to lead the struggling Hawaiian carrier Aloha
Airlines through Chapter 11 bankruptcy.  

Some union officials who weren't impressed with Mr. Banmiller's
previous performance at Air Jamaica reportedly expressed concern
that he might not be able to solve the airline's problems.  

The Jamaican government must guarantee that the new Air Jamaica
board focus on making the airline a viable entity by maximizing
efficiency and minimizing losses, The Jamaica Observer cites
Bustamante Industrial Trade Union's President Kavan Gayle.  Air
Jamaica needs "sound leadership, starting with a competent CEO
with a solid track record," Mr. Gayle added.

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 B1 rating
to Air Jamaica Limited's guaranteed senior unsecured notes.

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


AIR JAMAICA: May Help Prevent Crisis in Jamaica
-----------------------------------------------
Air Jamaica could help prevent the impending crisis triggered by
record high oil prices in Jamaica, The Jamaica Observer reports,
citing Gordon Stewart.

The Jamaican government sold a majority stake in Air Jamaica to
Mr. Stewart, a hotel tycoon, in 1994.  However, control of Air
Jamaica was surrendered to the government in December 2004 in a
bid to help the airline out of its financial difficulties.

According to The Observer, Mr. Stewart told an internal retreat
of top executives of Unique Vacations, worldwide representatives
of his Sandals/Beaches hotel chain, "Air Jamaica is a phenomenal
piece of asset that could be used to rescue Jamaica at a time
when we are facing unprecedented levels of oil prices that are
punishing the Jamaican economy."

A study by the Ivy League Massachusetts Institute of Technology
or MIT in the U.S. indicated that "the overall benefit to the
economy of Air Jamaica had surpassed by far the cost to keep the
airline afloat," The Observer says, citing Mr. Stewart.  The MIT
found that when Mr. Stwart's Air Jamaica Acquisition Group
operated Air Jamaica between 1995 and 2004, the airline  
contributed some US$5.5 billion to the economy.  About
US$1.8 billion of the contribution "was in direct incremental
benefits" and some US$3.6 billion was in indirect incremental
benefits.  Air Jamaica lost some US$650 million over the same
period.

The Observer notes that Mr. Stewart said, "Air Jamaica is the
single biggest asset that Jamaica has now, and we need to
harness it in every way possible."  Mr. Stewart suggested that
the government revitalize the Air Jamaica hub in Montego Bay,
St. James, as it could reap benefits similar to the Atlanta
Airport, the biggest airline hub in the world.

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 B1 rating
to Air Jamaica Limited's guaranteed senior unsecured notes.

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


AIR JAMAICA: Government to Keep 20% Stake in Airline
----------------------------------------------------
The Jamaican government will keep a 20% stake in Air Jamaica
under the terms of a divestment agreement, Radio Jamaica
reports, citing Don Wehby, Minister Without Portfolio in the
Finance Ministry.

Radio Jamaica relates that Minister Wehby assured that the
government has set out specific guidelines for the takeover to
protect and keep the Air Jamaica brand name.  "The selected
partner must commit to provide adequate airlift to Jamaica as a
tourist destination and we are 30%.  The prospective partner
must have an extensive airline experience and appropriate
capital.  It will take between US$300 million and US$500 million
to recapitalize Air Jamaica.  So any partner that we bring to
the table must have that sort of resources and they must be able
to do it on an equity basis or long term basis," the minister
said.

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 B1 rating
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.


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

CARDTRONICS INC: Denies Any Involvement in ATM-Hacking Case
-----------------------------------------------------------
Cardtronics Inc. has disclosed that recent press articles have
mentioned the company in the context of a reported attack by
hackers on ATM systems that is currently the subject of a
criminal prosecution in the United States District Court in New
York.  The company is not involved in this criminal prosecution
and therefore does not anticipate that it will issue any
statements with respect to this case or the alleged conduct of
the defendants in this case.

All ATMs owned or operated by Cardtronics have encrypted PIN
pads, as well as triple data encryption as required by the
various electronic fund transfer networks.  Additionally,
Cardtronics' processing platform complies with the PIN Security
Requirements established by the Payment Card Industry and has
successfully completed a PCI PIN security field review performed
by one of the major networks.

Headquartered in Houston, Texas, Cardtronics Inc. --
http://www.cardtronics.com/-- is a non-bank owner/operator of
ATMs with more than 25,750 locations.  The company operates in
every major U.S. market, at approximately 1,700 locations
throughout the U.K., and at over 700 locations in Mexico.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 16, 2008, Standard & Poor's Ratings Services revised its
outlook on Houston-based Cardtronics Inc. to positive from
stable.  At the same time, S&P affirmed the ratings on the
company, including the 'B+' corporate credit rating.

On July 2007, Moody's Investors Service assigned a Caa1 rating
to Cardtronics, Inc.'s proposed additional US$125 million "tack-
on" high yield subordinated notes, which will be used to fund
the US$135 million acquisition of the assets of financial
services business of 7-Eleven.


GRAFTECH INT'L: 19% Seadrift Deal Won't Affect S&P's Ratings
------------------------------------------------------------
Standard & Poor's Ratings Services said that its ratings and
outlook on Parma, Ohio-based GrafTech International Ltd. (BB-
/Positive/--) would not be affected by the company's
announcement that it has acquired a 19% minority interest in
Seadrift Coke L.P. (unrated), a privately owned producer of
petroleum needle coke, from Falcon Mezzanine Partners L.P. for
US$135 million.  GrafTech will fund the purchase with US$35
million in cash on hand and
US$100 million from its existing credit facility.
     
Given the recent conversion of its US$225 million notes to
equity, the company has cushion within its capital structure at
the current rating to absorb the additional debt.  However, the
company's business risk profile remains unchanged, given its
exposure to supplier risk.

Headquartered in Parma, Ohio, GrafTech International Ltd. -–
http://www.graftech.com/-- (NYSE:GTI) manufactures and provides   
high quality synthetic and natural graphite and carbon based
products and technical and research and development services,
with customers in 80 countries engaged in the manufacture of
steel, automotive products and electronics.  The company
manufactures graphite electrodes, products essential to the
production of electric arc furnace steel.  The company also
manufactures thermal management, fuel cell and other specialty
graphite and carbon products for, and provide services to, the
electronics, power generation, solar, oil and gas,
transportation, petrochemical and other metals markets.  The
company operates 11 manufacturing facilities strategically
located on four continents.

As of Feb. 28, 2008, the company has a subsidiary in
Switzerland, GrafTech Switzerland S.A.  GrafTech Switzerland has
subsidiaries located in other parts of Europe as well as Mexico
and Brazil in Latin America.


GRUPO POSADAS: S&P Affirms BB Long-Term Corporate Credit Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services has affirmed its 'BB' long-
term corporate credit and senior unsecured debt ratings on Grupo
Posadas S.A.B. de C.V.  S&P also affirmed its 'mxA' long-term
national scale corporate credit rating on the company.  The
outlook is stable.
      
"The rating reflects the cyclical nature of the lodging industry
and the company's geographic concentration in Mexico.  These
factors are offset by the company's consistent operating
performance, manageable debt-maturity schedule, position as the
largest hotel operator in Mexico, and diversified hotel
portfolio with well-recognized brands," said S&P's credit
analyst Monica Ponce.
     
During the 12 months ended March 31, 2008, the company added
1,238 rooms by opening nine new hotels in Mexico, of which the
company owns one and eight are under management contracts.  This
is in line with the company's strategy during past years to
gradually change its business mix to management contracts, thus
minimizing capital requirements.  Currently, around 60% of the
company's revenues are generated by owned or leased contracts,
20% by management contracts, and the remainder by Vacation Club.
     
Grupo Posadas' occupancy levels remain steady at 60%, which is
typical for the company and is only three percentage points more
than the average national occupancy level.  Overall, hotel
occupancy levels in Mexico averaged 57.2% in 2007.  The company
operates 104 hotels, with a total of 19,042 rooms.  Eighty-nine
of those hotels (85% of total rooms) are based in Mexico.  The
company also operates 10 hotels in Brazil, three in the U.S.,
and one each in Argentina and Chile.  Approximately 22% of rooms
are located in coastal hotels and 78% are in urban hotels,
offsetting, to some extent, the industry's cyclicality.
     
The stable outlook reflects S&P's expectation that the company
will maintain stable cash-flow generation, which will lead to
improved financial ratios in coming years.  S&P expects the
company to maintain its current strategy, which has produced
continued growth in under-management and lease agreements.  By
2009, Grupo Posadas should post a total debt-to-EBITDAR ratio in
the mid-3.0 area on average, adjusted for operating leases.  S&P
believes that the company will maintain its strong operating
performance, in keeping with S&P's expectation that the Mexican
lodging industry will remain solid in the intermediate term,
despite the economic slowdown.  S&P could lower the rating if
the company's financial profile deteriorates considerably or if
it makes acquisitions outside its core business.  Continued
improvement in the company's key financial ratios could lead to
a positive rating action in the long term.

Grupo Posadas SA de CV (BMV: POSADAS) -- http://www.posadas.com  
-- is the largest hotel operator in Mexico, specializing for
over 37 years in providing high-quality hotel services aimed at
covering the specific needs of its hotel customers, currently
operates 102 hotels and approximately 18,800 rooms in some of
the most important and most highly visited urban and coastal
destinations in Mexico, the United States and South America.

Grupo Posadas operates under its Aqua, Fiesta Americana Grand,
Fiesta Americana, Fiesta Americana Vacation Club, Fiesta Inn,
One Hotel, Caesar Park, Caesar Business and The Explorean brands
in Brazil, Argentina and Chile.


GRUPO TMM: Issues 3rd Tranche of 20-Yr Trust Certificates
---------------------------------------------------------
Grupo TMM, S.A.B., has issued the third tranche of 20-year
Mexican Trust Certificates (Certificados Bursatiles) for
MXN4.39 billion (approximately US$418 million) (the Third
Issuance).  This issuance was completed under the Company's
Mexican Trust Certificates program (the Program) for up to
MXN$9.0 billion.  The Program represents a long-term financing
in pesos that is non-recourse to the company.

The proceeds from the Third Issuance will be used to acquire
seven offshore vessels and three product tankers, to fund cash
reserves required for this structure and to pay issuance related
expenses.

Jose F. Serrano, chairman and chief executive officer of Grupo
TMM said, "We are very pleased to have closed the third tranche
of our Trust Certificates Program as it provides TMM the ability
to continue to grow through the acquisition of additional ships
with long-term financing tied to the useful life of these
vessels.  The Third Issuance was rated AA (mex) by Fitch
Ratings, reflecting TMM's continued quality operating
performance and increased demand for maritime transportation
services."

                          Grupo TMM

Headquartered in Mexico City,  Grupo TMM, S.A.B. (NYSE: TMM)(MEX
VALORIS: TMMA) -- http://www.grupotmm.com/-- is a Latin
American multimodal transportation and logistics company.
Through its branch offices and network of subsidiary companies,
TMM provides a dynamic combination of ocean and land
transportation services.

                        *     *     *

Standard & Poor's Ratings Services raised its corporate credit
rating on Grupo TMM SA to 'B-' from 'CCC.'  The rating was
removed from Creditwatch, where it was placed on Dec. 15, 2004.
S&P said the outlook is positive.


EMPRESAS ICA: Inks MXN1.475 Billion Construction Deal
-----------------------------------------------------
Empresas ICA, S.A.B de C.V., said that an ICA-led consortium has
signed a MXN1,475 million contract for the construction of the
Avila Camacho-Tihuatlan section of the Mexico City-Tuxpan
highway in the states of Puebla and Veracruz.  The consortium
includes ICA subsidiary Ingenieros Civiles Asociados, S.A. de
C.V., with 60%, and FCC Construccion, S.A. with 40%.  The unit
price, fixed term contract was awarded by the Ministry of
Communications and Transportation (SCT) through an international
public bidding process.

The project includes the construction of 48.1 km of highway,
including terracing, drainage works, asphaltic concrete paving,
complementary works, signage, interchanges, and structures from
kilometer marker 178+500 to 225+866.  Work will begin
immediately, and is scheduled to be completed in December 2009.

Once the Avila Camacho-Tihuatlan section is completed, it will
become part of the 30-year concession for the Nuevo Necaxa-
Tihuatlan highway that was awarded last year to AUNETI, a
consortium formed by ICA and GlobalVia Infraestructura
(GlobalVia).  The concession includes the exploitation,
conservation, operation and maintenance of the 84.7 km highway
for a period of 30 years.  ICA is currently constructing the
36.6 km Nuevo Necaxa-Tihuatlan section.  The highway is a key
part of the road link between Mexico City with the port of
Tuxpan in Veracruz state.

Empresas ICA, S.A.B de C.V. -- http://www.ica.com.mx/-- the       
largest engineering, construction, and procurement company in
Mexico, was founded in 1947.  ICA has completed construction and
engineering projects in 21 countries.  ICA's principal business
units include civil construction and industrial construction.
Through its subsidiaries, ICA also develops housing, manages
airports, and operates tunnels, highways, and municipal services
under government concession contracts and/or partial sale of
long-term contract rights.

                             *     *     *

As reported in the Troubled Company Reporter-Latin America on
Sept. 20, 2007, Standard & Poor's Ratings Services affirmed its
'BB-' long-term corporate credit rating on Empresas ICA S.A.B.
de C.V.  S&P said the outlook is stable.


KRISPY KREME: MGL Asset Deal Has No Impact on S&P's Ratings Yet
---------------------------------------------------------------
Standard & Poor's Ratings Services said that MGL Asset
Management Group LLC's unsolicited offer to purchase Krispy
Kreme Doughnuts Inc. (B-/Negative/--) has no immediate effect on
the company's ratings or outlook.  At this point, S&P cannot
discern if the offer is credible or if it will be accepted.  
S&P's current ratings reflect the many challenges facing the
company, namely slower consumer spending, rising commodity
costs, and a declining domestic store base that is a result of
narrow product offerings that has not been able to compete
effectively within the breakfast and snack-food segments of the
restaurant industry.  If Krispy Kreme were purchased, those
challenges would not change materially, and therefore, the
ratings and outlook are not likely to change.
     
The report from MGL Asset Management states that the offer would
be for US$7.25, which would be a 45% premium over Krispy Kreme's
closing price on June 30, 2008, of US$4.99, and would be
financed with a combination of debt and equity.  The company's
senior secured credit agreement also has a "Change of Control"
provision, which would likely mean that the outstanding
borrowings on its term loan would have to be refinanced or
retired, if the company were purchased.
     
If Krispy Kreme were to enter into a definitive agreement with a
potential buyer, S&P would review the terms of the proposed
transaction as they become available and respond to them as
appropriate.

Headquartered in Winston-Salem, North Carolina, Krispy Kreme
Doughnuts Inc. (NYSE: KKD) -- http://www.KrispyKreme.com/--
is a retailer and wholesaler of doughnuts.  The company's
principal business, which began in 1937, is owning and
franchising Krispy Kreme doughnut stores where over 20 varieties
of doughnuts are made, sold and distributed and where a broad
array of coffees and other beverages are offered.

As of Feb. 3, 2008, there were 449 Krispy Kreme stores operated
systemwide in 37 U.S. states and in the District of Columbia,
Australia, Canada, Hong Kong, Indonesia, Japan, Kuwait, Mexico,
the Philippines, Qatar, Saudi Arabia, South Korea, the United
Arab Emirates and the United Kingdom, of which 105 were owned by
the company and 344 were owned by franchisees.  Of the 449 total
stores, there were 295 factory stores and 154 satellites.  Of
the Krispy Kreme factory stores and satellites in operation at
Feb. 3, 2008, 210 and 35, respectively, were located in the
United States.


MANITOWOC CO: S&P's 'BB' Rtg Unmoved by US$2.7B Enodis Bid Raise
----------------------------------------------------------------
Standard & Poor's Ratings Services said that its ratings and
outlook on Manitowoc Co. Inc. (BB/Stable/--) are not affected by
the company's announcement that it has raised its bid to acquire
Enodis PLC to about US$2.7 billion from about US$2.4 billion,
including the assumption of Enodis' net debt.  The acquisition
would enhance Manitowoc's business risk profile by expanding its
global presence in the more stable food service market.  At the
existing ratings, Manitowoc has significant debt capacity to
absorb an acquisition of this size and strategic importance.
     
Meanwhile, Manitowoc's 'BB' unsecured debt remains on
CreditWatch with negative implications pending review of final
financing plans for the acquisition, which may include a
significant amount of new secured debt.  S&P have previously
stated that it could rate the issue-level rating on the senior
unsecured debt up to two notches below the corporate credit
rating, depending on the amount of secured financing that may
occur.

Headquartered in Maniwotoc, Wisconsin, The Manitowoc Company
Inc. (NYSE: MTW) -- http://www.manitowoc.com/-- provides   
lifting equipment for the global construction industry,
including lattice-boom cranes, tower cranes, mobile telescopic
cranes, and boom trucks.  As a leading manufacturer of ice-cube
machines, ice/beverage dispensers, and commercial refrigeration
equipment, the company offers the broadest line of cold-focused
equipment in the foodservice industry.  In addition, the company
is a provider of shipbuilding, ship repair, and conversion
services for government, military, and commercial customers
throughout the maritime industry.  The company has regional
offices in Mexico and Brazil.  Revenues for the twelve months
ended March 31, 2008 totaled about US$4.2 billion.


OCEANOGRAFIA SA: Fitch Assigns B Foreign & Local Curr. IDRs
-----------------------------------------------------------
Fitch Ratings has assigned these ratings to Oceanografia S.A. de
C.V.:

  -- Foreign currency issuer default rating 'B';
  -- Local currency issuer default rating 'B';
  -- Proposed US$375 million secured notes due 2015 'B+/RR3'.

The 'RR3' Recovery Rating is consistent with an anticipated
recovery of 50%-70% in the event of a default.  The Rating
Outlook is Stable.

Oceanografia's ratings reflect its position as a leading
provider of marine-contracting services to Petroleos Mexicanos
S.A. (foreign currency IDR rated 'BBB' and on Rating Watch
Positive by Fitch).  Additional factors supporting the rating
are Oceanografia's recent entrance into the underwater pipeline
construction business, which has allowed the company to capture
a greater portion of Petroleos Mexicanos' increased underwater
infrastructure spending and benefit from favorable industry
trends.

These rating considerations are balanced against Oceanografia's
high financial leverage and an aggressive capital expenditure
plan.  Further factored into the ratings are the risks
associated with operating in the highly cyclical oil and gas
services industry, the company's large near-term capacity/fleet
additions, and geographic and customer concentrations.

Oceanografia owns and leases a fleet of 35 vessels and pipeline
construction barges that can lay pipeline in various water
depths.  Oceanografia's Mexican-flagged fleet and saturation
diving system is well-positioned to bid competitively for such
deepwater pipeline construction in the Mexican market; Mexican
commercial navigation laws give Mexican-flagged vessels
preference over non-Mexican-flagged vessels.

Due to the growth in their pipeline construction business,
Oceanografia generated an operating EBITDAR of US$158 million
during 2007, an improvement from US$112 million during 2006.  
Lease adjusted debt climbed to US$723 million from US$367
million during the year, however, due to financing of new
vessels.  As a result, leverage, as measured by total debt
adjusted for lease obligations to EBITDAR, increased to 4.6
times from 3.3x.

Oceanografia currently has a growing US$1.2 billion plus, five-
year backlog of business.  This will result in higher EBITDAR in
2008. Nevertheless, debt will remain high as the company is in
the process of acquiring two pipelay vessels (Goliath and
Sampson), six diving support vessels, six offshore support
vessels and one field support vessel.  The Goliath and Sampson
are of particular strategic importance as these derrick barges,
which are capable of laying 42-inch diameter pipeline in depths
of up to 3,000 meters, will be able to operate virtually
anywhere in the world when they become operational.

Oceanografia's operations are heavily concentrated with
Petroleos Mexicanos, and its projects are primarily related to
Pemex's Cantarell oil field, which represents approximately 55%
of Petroleos Mexicanos' crude production.  The company has
developed high-technology systems and equipped marine vessels
with dynamic positioning systems to meet the marine contracting
services needs of Pemex, which accounted for more than 99% of
its service revenue during 2007.  As crude oil reserves begin to
decline in the Cantarell oil field, Petroleos Mexicanos has an
increasing need to explore in the deeper waters of the Gulf of
Mexico.  Marine contracting services require specialized
technology to transport divers safely to depths of 300 meters.

Since entering the pipelay business, Oceanografia has been
successful in securing contract awards from Petroleos Mexicanos
for new underwater infrastructure projects.  High oil prices and
production declines at Pemex's Cantarell field are increasing
its offshore drilling activity and should support higher levels
of demand for infrastructure in the Mexican Gulf over the near
term.  Pipelay construction project contracts are generally
fixed-price, turnkey contracts and short term in nature;
contracts have some flexibility for cost variation, which lowers
cost overrun risk

Oceanografia is a privately held marine contracting service
company that provides marine services to Petroleos Mexicanos.  
The Company began operations primarily as an engineering and
consulting company over 40 years ago and has grown to be a key
provider of vessel chartering, inspection, maintenance and
repair.  In 2005, Oceanografia entered the underwater pipeline
construction business, which is a higher margin, more cyclical
segment than Oceanografia's traditional business segments.  
During 2007, 72% of the company's revenues were derived from
pipeline construction.  Maintenance and repair work were the
second largest segment of the company's business portfolio,
accounting for 17% of revenues, while vessel chartering
accounted for the remaining 11% of revenues.

Founded in 1968, Oceanografia S.A. de C.V. --
http://www.oceanografia.com.mx/-- provides pipe laying and pipe   
burial construction services; inspection, maintenance and repair
services; and vessel chartering services for state-owned
petroleum company Petroleos Mexicanos in the Bay of Campeche,
Mexico.


SMURFIT-STONE: Fitch Holds 'B+' ID Rating with Negative Outlook
---------------------------------------------------------------
Fitch Ratings has affirmed the ratings of Smurfit-Stone
Container Corporation as:

  -- Issuer Default Rating at 'B+';
  -- Secured bank debt at 'BB+/RR1';
  -- Senior unsecured debt at 'B+/RR4';
  -- Preferred stock at 'B-/RR6'.

The Rating Outlook remains Negative.

SSCC is facing significant cost inflation challenges in what
looks to be a weak year for North American box demand and an
expensive year for SSCC's capital budget.  The company is
projecting
US$250 million in cost inflation in 2008 and benefits of
US$80 million-US$95 million from savings in the final year of
its Transformation Plan.  To hang onto progress made over the
last three years, the gap needs to be filled by higher prices
for its products, and much depends on the success of a US$55/ton
price increase slated for this month which failed in the first
quarter.  SSCC will also be spending more money this year,
around
US$400 million, for high-speed corrugators and two greenfield
operations.

The Negative Rating Outlook heralds from an alternate view for a
much higher cost inflation in weaker than anticipated North
American markets.  Skyrocketing oil and natural gas prices and a
projected resumption of rising recycled paper costs due to
demand from China are the expected added cost pressures.  
Chinese capacity coming on-stream which could weaken U.S.
linerboard exports could also oversupply North American markets.  
Both events could undermine SSCC's ability to grow EBITDA, cash
flow and debt reduction.  For 2008 Fitch expects that EBITDA
will be less than last year's US$760 million, and that net
debt/EBITDA could retrench toward 6 times if SSCC is forced to
borrow to support its capital budget.  The possibility of a
ratings downgrade would exist if leverage metrics approach a 7x
net debt/EBITDA without improving market conditions.

SSCC is a key North American producer in the corrugated box
markets with 16 paper mills and 118 corrugated container plants
in North America.  The company produces 7 million tons annually
of containerboard and sells more than 70 billion square feet of
boxes to home appliance, beverage, food, pharmaceutical,
computer, machinery and furniture manufacturers.

Headquartered in Chicago, Illinois, Smurfit-Stone Container
Corporation is a publicly traded holding company that operates
through a wholly-owned subsidiary company, Smurfit-Stone
Container Enterprises, Inc.  The company is an integrated
producer of containerboard and corrugated containers (paper-
based industrial packaging) and is a large collector, marketer,
and exporter of recycled fiber.  The company also produces
market pulp and kraft paper.  The company has operations in
Mexico.


VITRO SAB: Court Ratifies Decision on Pilkington's Opposition
-------------------------------------------------------------
Vitro S.A.B. de C.V.'s subsidiary Vimexico, S.A. de C.V., has
been notified of the final decision issued by the Appeals Court
of the Fourth Circuit, ratifying the decision issued by the
lower court denying Pilkington Group Limited's opposition to the
resolutions adopted at the Extraordinary Shareholders Meeting
held on Dec. 11, 2006, of the now extinct company Vitro Plan,
S.A. de C.V.

As a result of this decision of the Appeals Court, in accordance
with article 200 of the Mexican General Law of Corporations, all
of the above mentioned resolutions are valid and binding for all
shareholders, including those who voted against such
resolutions.

In addition, the Appeals Court confirmed the dismissal of all
claims demanded by Pilkington in its original complaint and
confirmed the validity of the merger of Vitro Plan into Vimexico
approved at the Extraordinary Shareholders Meeting of the now
extinct Vitro Plan.

At the same time, the Appeals Court confirmed the decision to
condemn Pilkington to pay Vimexico attorneys fees and expenses
including those incurred during Appeals proceedings; such amount
will be calculated upon the execution of the decision.

Despite the fact that Pilkington may still appeal this decision
through an "Amparo" proceedings, Vitro, S.A.B. de C.V., based in
the opinion of its attorneys in charge of this case, believes
that such proceedings will not succeed and the decisions issued
by the lower court and the appeals court will be confirmed.

Headquartered in Monterrey, Mexico, Vitro, S.A.B. de C.V. (BMV:
VITROA; NYSE: VTO), through its two subsidiaries, Vitro Envases
Norteamerica, SA de C.V. and Vimexico, S.A. de C.V., is a
leading global glass producer, serving the construction and
automotive glass markets and glass containers needs of the food,
beverage, wine, liquor, cosmetics and pharmaceutical industries.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
April 30, 2008, Fitch affirmed Vitro, S.A.B. de C.V.'s Foreign
currency issuer default rating at 'B'; Local currency issuer
default rating at 'B'; and Senior unsecured notes due in 2012,
2013 and 2017 at'B+/RR3'.



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

BUNGE LTD: Acquires Tate & Lyle Sugar Trading & Marketing Units
---------------------------------------------------------------
Bunge Limited has disclosed an agreement to acquire the
international sugar trading and marketing division of Tate &
Lyle PLC.  The acquisition will strengthen Bunge's position in
the sugar value chain by expanding its international trading and
marketing activities and by creating a stronger network for
sugar origination in Brazil, Thailand, and other geographies.  
The completion of the transaction is subject to the receipt of
certain regulatory approvals and other customary conditions.

As a first stage, the operations and employees of Tate & Lyle's
international sugar trading business will transfer to Bunge.  
The working capital in the business will remain with, and be
collected and paid by, Tate & Lyle through March 31, 2009, at
which point it will be assumed by Bunge upon final completion of
the transaction.

"Bunge's strategy is to expand into complementary value chains,
and sugar is an essential one," co-Chief Executive Officer of
Bunge Global Agribusiness, Archie Gwathmey stated.  "In the past
two years we have established a sugar marketing and trading
operation and purchased a sugarcane mill in Brazil.  
Strengthening our global team is a natural next step.  Tate &
Lyle has been one of the world's leading international sugar
traders with a long tradition in the business and strong
customer and supplier relationships.  We are pleased to welcome
this team and business to Bunge."

                        About Bunge Ltd.

Headquartered in White Plains, New York, Bunge Ltd. (NYSE: BG)
is a global agribusiness company which supplies fertilizer to
farmers, originates, transports and processes oilseeds, grains
and other agricultural commodities worldwide, produces food
products for commercial customers and consumers, and supplies
raw materials and services to the biofuels industry in South
America and Asia.  The company has operations in Brazil, Peru
and Argentina.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Nov. 8, 2007, Standard & Poor's Ratings Services assigned its
'BB' rating to Bunge Ltd.'s US$750 million of 5.125% cumulative
mandatory convertible preference shares.  At the same time, S&P
affirmed its 'BBB-' long-term corporate credit and other ratings
on Bunge with a stable outlook.  Pro forma for the new issue,
about US$4.2 billion of debt and preference shares of the
company are rated.  Proceeds from this issue will be used to
repay debt and for general corporate purposes.



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

ANGIOTECH PHARMA: Moody's May Lower B3 Rating After Review
----------------------------------------------------------
Moody's Investors Service placed the ratings (B3 Corporate
Family Rating and B2 Probability of Default Rating) of Angiotech
Pharmaceuticals, Inc. under review for possible downgrade.

At the same time, Moody's changed the company's Speculative
Grade Liquidity assessment to SGL-4 from SGL-3, reflecting
Angiotech's weak liquidity profile.

The rating review is driven primarily by concerns regarding
Angiotech's ongoing negative cash flow generation, which has
resulted in lower cash balances and impaired liquidity.  
Although the company is taking steps to lower its R&D expenses,
a reduction in TAXUS royalty revenues is expected to occur later
this year.

Moody's review will consider:

   (1) progress in reducing R&D and SG&A spend;

   (2) the extent to which these remedies can offset expected
       declines in TAXUS royalty revenues once the Xience stent
       is approved in the US; and

   (3) actions the company may take to improve its capital
       structure.

If the company's capital structure changes, Moody's would
reassess the Corporate Family as well as the Probability of
Default Ratings.  As part of the review, LGD assessments and
point estimates are also subject to change.

Ratings placed under review for possible downgrade:

Angiotech Pharmaceuticals, Inc.

   -- Corporate Family Rating at B3

   -- US$325 Million Senior Unsecured Notes at B2, LGD3, 46%

   -- US$250 Million Senior Subordinated Notes at Caa1, LGD6,
      91%

   -- Probability of Default Rating at B2

Rating changed:

   -- Speculative Grade Liquidity Rating to SGL-4 from SGL-3.

Based in Vancouver, British Columbia, Angiotech Pharmaceuticals
Inc. (NASDAQ: ANPI, TSX: ANP)-- http://www.angiotech.com/--  is   
a pharmaceutical and medical device company with over 1,500
dedicated employees.  Angiotech discovers, develops and markets
innovative treatment solutions for diseases or complications
associated with medical device implants, surgical interventions
and acute injury.  The company has several specialized direct
sales and distribution organizations in Puerto Rico, the United
States, the United Kingdom, Denmark and Switzerland, as well as
significant manufacturing capabilities.


DORAL FINANCIAL: Research Oracle Upgrades Common Stock to Buy
-------------------------------------------------------------
Research Oracle has upgraded Doral Financial Corp.'s New York
Stock Exchange common stock to "buy" from "hold".

Doral Financial's NYSE common stock has depreciated
significantly since Research Oracle's previous update report,
reflecting investor concerns over the sensitivity of financial
stocks to volatility in global markets.  Research Oracle
continues to expect Doral Financial's restructuring initiatives
to transform it into a more conventional bank, which should
drive top-line growth and lower its costs.  As a result, the  
decline has created a buying opportunity in Research Oracle's
view.

Based in New York City, Doral Financial Corp. (NYSE: DRL)
-- http://www.doralfinancial.com/-- is a diversified financial
services company engaged in mortgage banking, banking,
investment banking activities, institutional securities and
insurance agency operations.  Its activities are principally
conducted in Puerto Rico and in the New York City metropolitan
area.  Doral is the parent company of Doral Bank, a Puerto Rico
based commercial bank; Doral Securities, a Puerto Rico based
investment banking and institutional brokerage firm; Doral
Insurance Agency Inc. and Doral Bank FSB, a federal savings bank
based in New York City.

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
April 3, 2008, Standard & Poor's Ratings Services raised its
long-term counterparty credit rating on Doral Financial Corp. to
'B+' from 'B' and removed it from CreditWatch Positive, where it
had been placed July 20, 2007.  S&P said the outlook is stable.



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

FABRICA NACIONAL: Moody's Reviews B1/A3 Ratings for Upgrade
-----------------------------------------------------------
Moody's Investors Service has placed its ratings for Fabrica
Nacional de Papel S.A. under review for possible upgrade.  
Ratings affected include the company's B1 local currency
corporate family rating and the A3.uy Uruguay national scale
rating on its US$13.2 million in outstanding senior unsecured
notes due 2012 issued by the company in Uruguay's domestic debt
market.

Moody's action follows the announcement that Celulosa Argentina
SA has signed a definitive agreement to acquire 97.6% of the
shares of the company from Tapebicua LLC.  The transaction's
value is approximately US$133 million.  Prior to the
acquisition, Celulosa was an 82.04% owned subsidiary of Fabrica
Nacional, with 17.96% of its shares floating in the Buenos Aires
Stock Exchange, a percentage that remains unchanged.  Post
acquisition, Tapebicua LLC will control 82.04% of Celulosa
Argentina's capital stock and, consequently, 97.6% of Fabrica
Nacional's shares.

The placement of Fabrica Nacional's ratings under review for
possible upgrade considers the company's improved debt
protection metrics, which incorporate expected support from
Celulosa, due to the presence of cross default provisions that
would cause an acceleration of most of Celulosa's debt in the
event of a default at the company.

The review will focus on the sustainability of the group's
consolidated credit metrics and the degree to which Fabrica
Nacional could monetize part of its timberlands to reduce
indebtedness.  In addition, the review will consider the group's
liquidity profile and capital expenditure requirements.

The company's B1 local currency corporate family rating reflects
its global default and loss expectation, while the A3.uy
national scale rating reflects the standing of its credit
quality relative to its domestic peers.  Issuers or issues rated
A3.uy present above-average creditworthiness relative to other
domestic issuers.

Headquartered in Montevideo, Uruguay, Fabrica Nacional de Papel
S.A. (aka Fanapel) -- http://www.fanapel.com.uy/-- is the  
leading company in the Uruguayan paper sector.  As an integrated
company, the company fulfills 65% of local demand for paper and
generates 80% of the country's paper exports.  Established in
1898, it has been quoted on the Montevideo Stock Exchange for
more than 50 years.




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

CITGO PETROLEUM: Will Shut Down Lake Charles Plant This Year
------------------------------------------------------------
Erwin Seba at Reuters reports that Citgo Petroleum Corp.
spokesperson Megan Monsour said the firm will close down its
40,000 barrel per day lubricating oil plant in Lake Charles,
Louisiana, in the second and third quarters of 2008.

"The decision is in response to continued downward trends in the
market and in an effort to remain competitive," Reuters quotes
Ms. Monsour as saying.  According to Reuters' sources familiar
with plant operations, the plant has been operating at about
half its capacity, with a US$6 million monthly loss.  Shutting
down the plant will also keep Citgo Petroleum's operations in
Lake Charles "within pollution limits negotiated with state and
federal regulators over the past five years," the sources added.

Reuters relates that the plant closure is part of Citgo
Petroleum's efforts to maximize returns to parent Petoleos de
Venezuela S.A.

According to Reuters, Citgo Petroleum has notified the employees
of the plant's planned closure.  About 145 hourly employees
represented by the United Steelworkers union will be dismissed.  
The sources said that some of the workers could be laid off on
Aug. 12, 2008.  Layoffs could continue through the end of 2008.
Negotiations are ongoing to find jobs for some of the employees,
the sources added.

Headquartered in Houston, Texas, Citgo Petroleum Corp. --
http://www.citgo.com/-- is owned by PDV America, an indirect,
wholly owned subsidiary of Petroleos de Venezuela S.A., the
state-owned oil company of Venezuela.

Petroleos de Venezuela 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.

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
Dec. 21, 2007, CITGO Petroleum Corporation's Issuer Default
Rating was lowered by Fitch to 'BB-' from 'BB' following the
company's announcement that it has taken out a US$1 billion
bridge loan and used the proceeds to make a US$1 billion loan to
parent Petroleos de Venezuela SA (PDVSA IDR 'BB-', Negative
Outlook).


NORTHWEST AIRLINES: Cuts Int'l Flights Due to High Fuel Prices
--------------------------------------------------------------
Northwest Airlines Corporation, with its trans-Atlantic joint
venture partner KLM Royal Dutch Airlines, announced a seasonal
suspension of flights between Minneapolis/St. Paul-Paris and
cancellation of flights between Detroit-Dusseldorf and Hartford-
Amsterdam, effective Oct. 1, 2008.

With oil reaching a record-breaking US$140 a barrel, the
reductions come in response to soaring fuel costs and decreased
customer demand.  Customers with advance bookings for these
flights will be offered alternate NWA or SkyTeam alliance flight
re-accommodations.

Selective frequency reductions and aircraft type changes may
also be implemented on additional trans-Atlantic flights,
depending on oil prices and ongoing customer demand.

                       Seasonal Suspension

                   Minneapolis/St. Paul - Paris
                                                      Effective
                                                      Date of
Destination   Flight No.     Departs    Arrives      Suspension
-----------   ----------     -------    -------      ----------
Paris         NW 62/KL 6062  3:45 p.m.  7:20 a.m. +1 10/01/2008

Minneapolis/  NW 61/KL 6061  12:50      3:25 p.m.    10/02/2008
St. Paul

      Flights will resume between Minneapolis/St. Paul and Paris
on March 28, 2009.

                         Cancellations

                      Detroit - Dusseldorf
                                                    Effective
                                                    Date of
Destination  Flight No.     Departs   Arrives      Cancellation
-----------  ----------     -------   -------      ------------
Dusseldorf   NW 94/KL 6094  9:45 p.m. 11:45 a.m. +1 10/01/2008

Detroit      NW 93/KL 6093  1:15 p.m.  4:15 p.m.    10/02/2008


                     Hartford - Amsterdam

                                                    Effective
                                                    Date of
Destination  Flight No.     Departs   Arrives      Cancellation
-----------  ----------     -------   -------      ------------

Amsterdam    NW 98/KL 6098  5:25 p.m. 6:40 a.m.    10/01/2008
                                       + 1

Hartford,    NW 97/KL 6097  1:25 p.m. 3:25 p.m.    10/02/2008
CT

                     About Northwest Airlines

Northwest Airlines Corp. (NYSE: NWA) -- http://www.nwa.com/--     
is the world's fourth largest airline with hubs at Detroit,
Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and about
1,400 daily departures.  Northwest is a member of SkyTeam, an
airline alliance that offers customers one of the world's most
extensive global networks.  Northwest and its travel partners
serve more than 1000 cities in excess of 160 countries on six
continents.  Northwest and its travel partners serve more than
1000 cities in excess of 160 countries on six continents,
including Italy, Spain, Japan, China, Venezuela and Argentina.

The company and 12 affiliates filed for chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930).  Bruce
R. Zirinsky, Esq., and Gregory M. Petrick, Esq., at Cadwalader,
Wickersham & Taft LLP in New York, and Mark C. Ellenberg, Esq.,
at Cadwalader, Wickersham & Taft LLP in Washington represent the
Debtors in their restructuring efforts.  The Official Committee
of Unsecured Creditors has retained Scott L. Hazan, Esq., at  
Otterbourg, Steindler, Houston & Rosen, P.C. as its bankruptcy  
counsel in the Debtors' chapter 11 cases.

When the Debtors filed for bankruptcy, they listed
US$14.4 billion in total assets and US$17.9 billion in total
debts.  On Jan. 12, 2007 the Debtors filed with the Court their
Chapter 11 Plan.  On Feb. 15, 2007, they Debtors filed an
Amended Plan & Disclosure Statement.  The Court approved the
adequacy of the Debtors' Disclosure Statement on March 26, 2007.  
On May 21, 2007, the Court confirmed the Debtors' Plan.  The
Plan took effect May 31, 2007.  (Northwest Airlines Bankruptcy
News, Issue No. 95; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


NORTHWEST: CEO Urges Congress to Close Trading Loopholes  
--------------------------------------------------------
Northwest Airlines (NYSE: NWA) CEO Doug Steenland told members
of Congress that surging oil prices are severely challenging the
airline industry -- and unregulated oil speculation is a major
cause of the industry's pain -- as he testified before the House
Committee on Energy and Commerce, Subcommittee on Oversight and
Investigations.

Mr. Steenland, who also serves as Chairman of the Board of
Directors for the Air Transport Association, said fuel is
quickly approaching 40% of the airline industry's operating
costs -- and growing.  In 2008, U.S. airlines are expected to
spend US$61.2 billion on jet fuel, US$20 billion more than in
2007, and are projected to incur losses totaling close to US$10
billion.

"If the current pricing dynamic does not change, our industry
will be severely challenged and will continue shrinking -– to
the detriment of customers, employees and the communities we
serve.  It is as simple and stark as that," said Mr. Steenland.

Mr. Steenland noted, "Unfortunately, the U.S. airline industry
has become the poster child for why reform is needed" as it
relates to speculative commodities trading of oil futures.  "The
price of jet fuel, which as you know is tied to the price of
oil, is out of control."

             Steenland Cites Supply-Demand Disconnect

Mr. Steenland explained that worldwide daily demand for oil has
increased about 2% over the past 12 months, while prices
have increased over 100% in that same time period.  "Supply and
demand fundamentals alone do not explain the price increases and
volatility experienced in the energy markets," said Mr.
Steenland.

A major cause of this disconnect, Mr. Steenland says, is an
increase in speculative investments in the futures markets by
financial institutions such as pension funds, investment banks
and hedge funds.  In March of 2008, world oil consumption was
about 87 million barrels a day.  However, about 1.2 billion
barrels of oil were traded on an average day on the NYMEX and
the London Intercontinental Exchange.  The volume of paper
transactions, or trades, was 13 times greater than the actual
amount of oil used daily worldwide.

Mr. Steenland said this volume of speculative activity is
excessive, and that additional regulation is necessary because
it "has placed upward pressure on oil prices irrespective of
market fundamentals."

                   Steenland Urges Congress to
               Close Commodities Trading Loopholes

Mr. Steenland said Congress needs to close commodities trading
loopholes and increase regulation of commodities trading here
and abroad.  To address this situation, the ATA has developed a
list of common-sense measures that will level the playing the
field between regulated and unregulated exchanges, which should
squeeze from the market a speculator premium.

               Labor, Business and Trade Support
                    Steenland/ATA proposals

Adding further support to Steenland's testimony and the
proposals from ATA, a coalition of labor, business and trade
organizations signed onto letter to the subcommittee's chairman,
Congressman Bart Stupak.  The coalition, including the Air Lines
Pilots Association (ALPA) and International Association of
Machinists and Aerospace Workers (IAM) District 143, wrote,
"Experts agree that today's surging oil prices are beyond those
warranted by supply-demand fundamentals and are due, in large
part, to rampant speculation."

The 15-member coalition added, "In early June, speculators
traded more than 1.9 billion barrels of crude oil -– 22 times
the size of the physical oil market, including US$150 billion
traded on the New York Mercantile Exchange alone.  Sophisticated
"paper" speculators who never intend to use oil are driving up
costs for consumers and making huge profits with little to no
risk."

The coalition is also calling for immediate Congressional
action against oil speculators and applauded Congressman Stupak
for his proposed "Prevent Unfair Manipulation of Prices Act of
2008" -- or PUMP Act -- with its focus on "opening up the market
to greater transparency and fairness to level the playing field
for all traders."

In addition to ATA, ALPA, and IAM District 143, the coalition
includes: The Air Carriers Association of America, Airports
Council International, the American Association of Airport
Executives, the American Society of Travel Agents, the
Association of Professional Flight Attendants, Industrial Energy
Consumers of America, International Brotherhood of Teamsters,
National Air Traffic Controllers Association, National Business
Travel Association, National Farmers Union, and the Regional
Airline Association.

              Changes in Fuel Surcharge Methodology

NWA Cargo will change to a distance-based fuel surcharge
methodology in long-haul international markets effective June
25th, 2008, subject to government approvals where required.

This new fuel surcharge methodology will add an additional
US$0.10 per kilogram surcharge for longer-haul shipments.  This
will apply between North America and points in Asia beyond Japan
and Korea, and from North America to India -- the longest routes
in the NWA cargo network.

Shipments from North America to transatlantic markets and also
from North America to Japan and Korea are not impacted.

"In an environment of unprecedented fuel prices, adjusting fuel
surcharges to more accurately reflect distance will better align
the surcharges collected with the actual expense incurred to
transport the freight," said Tom Bach, President-NWA Cargo.

Under the new methodology, fuel surcharge amounts between North
America and Shanghai (PVG) and Guangzhou (CAN) will also
increase US$0.10 to US$0.50 per kilogram above existing all-in
rates.

Additionally, domestic surcharges will increase from US$0.44 per
pound to US$0.48 per pound.

Full details on the new surcharge methodology including local
currency equivalents and shipper built unit charges may be
obtained from local NWA Cargo sales offices or at
http://www.nwa.com/services/shipping/cargo/surcharge.shtml/

                     About Northwest Airlines

Northwest Airlines Corp. (NYSE: NWA) -- http://www.nwa.com/--     
is the world's fourth largest airline with hubs at Detroit,
Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and about
1,400 daily departures.  Northwest is a member of SkyTeam, an
airline alliance that offers customers one of the world's most
extensive global networks.  Northwest and its travel partners
serve more than 1000 cities in excess of 160 countries on six
continents.  Northwest and its travel partners serve more than
1000 cities in excess of 160 countries on six continents,
including Italy, Spain, Japan, China, Venezuela and Argentina.

The company and 12 affiliates filed for chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930).  Bruce
R. Zirinsky, Esq., and Gregory M. Petrick, Esq., at Cadwalader,
Wickersham & Taft LLP in New York, and Mark C. Ellenberg, Esq.,
at Cadwalader, Wickersham & Taft LLP in Washington represent the
Debtors in their restructuring efforts.  The Official Committee
of Unsecured Creditors has retained Scott L. Hazan, Esq., at  
Otterbourg, Steindler, Houston & Rosen, P.C. as its bankruptcy  
counsel in the Debtors' chapter 11 cases.

When the Debtors filed for bankruptcy, they listed
US$14.4 billion in total assets and US$17.9 billion in total
debts.  On Jan. 12, 2007, the Debtors filed with the Court their
Chapter 11 Plan.  On Feb. 15, 2007, they Debtors filed an
Amended Plan & Disclosure Statement.  The Court approved the
adequacy of the Debtors' Disclosure Statement on March 26, 2007.  
On May 21, 2007, the Court confirmed the Debtors' Plan.  The
Plan took effect May 31, 2007.  (Northwest Airlines Bankruptcy
News, Issue No. 95; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


PETROLEOS DE VENEZUELA: Profit Rises to US$3.45BB in 1st Quarter
----------------------------------------------------------------
Petroleos de Venezuela S.A. said that its profit increased 80%
to US$3.45 billion in the first quarter 2008, compared to the
same period last year, Reuters reports.

Reuters relates that Venezuela's oil production rose 2% to
3.21 million barrels per day in the first quarter 2008, compared
to last year's first quarter.  According to market observers,  
Venezuela's output is around only 2.5 million barrels per day,
which the Venezuelan government denies, saying that the
statement is a politically motivated attack.

The report says that revenue grew 52% to US$31.40 billion in the
first quarter 2008, form the same period last year, due to an
increase in Venezuela's crude oil basket price to US$87.89 this
year from US$48.65 in 2007.  Total costs also rose 38% to
US$24.29 billion.

According to Reuters, Petroleos de Venezuela paid some
US$7.92 billion in royalties and "other taxes" and
about US$1.39 billion in income tax.  The firm has declared a
US$2 billion dividend.

Reuters notes that Petroleos de Venezuela's total exports of
crude oil and products declined 1% to 2.82 million barrels per
day in the first quarter 2008, compared to the first quarter
2007.  Product exports dropped 8% amid consistent operational
problems at refineries.  Meanwhile, domestic market sales of
refined products and natural gas liquids rose 1% to 556,000
barrels per day.

Reuters states that refining capacity decreased 80,000 barrels
per day to 3.02 million barrels per day, after the sale of
refineries in Paulsboro and Savannah.  Petroleos de Venezuela's
plants produced 31% more low-sulfur residual fuel and 16% more
high-sulfur residual fuel in this year's quarter, compared to
the first quarter of 2007.  Distillate production declined by
12%.  Petroleos de Venezuela supplied its U.S. refining
affiliate Citgo Petroleum Corp. with 276,000 barrels per day of
crude oil in the first quarter 2008, compared with 334,000
barrels per day in 2007.

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: Wants Stake in Indian Oil's Plant
---------------------------------------------------------
News agency Press Trust of India reports that Petroleos de
Venezuela S.A. is interested in acquiring a stake in Indian Oil
Corp.'s Paradip plant in Orissa.

Press Trust cites an Indian Oil official as saying, "We have
received interest from PdVSA [Petroleos de Venezuela] for taking
a stake.   We are evaluating the offer."  In exchange, Petroleos
de Venezuela will commit almost 50% of the crude oil required
for processing at Paradip, which has a capacity of 15 million
tons per year, Press Trust notes.  

According to Press Trust, Indian Oil is aiming to complete the
Paradip plant by the third quarter of the 2011 calendar year.  
Indian Oil is willing to keep a 51% controlling stake in the
plant and give Petroleos de Venezuela an up to 49% stake.     

"We are not exactly looking for a partner just for getting
money.  We want someone who bring value.  In this case, PdVSA
has said it can supply Venezuelan crude to the refinery," Press
Trust quoted the official.  Indian Oil was considering sourcing
at least 50% of the crude requirement, the official added.     

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: May Sell NatGas to Petrobras in 2013
------------------------------------------------------------
Petroleos de Venezuela S.A. may exports some four million cubic
meter per day of liquefied natural gas to Petroleo Brasileiro
SA, a.k.a. Petrobras, starting in 2013, Bernd Radowitz at Dow
Jones Newswires reports, citing Petrobras' Oil and Gas Director
Maria das Gracas Foster.

As reported in the Troubled Company Reporter-Latin America on
July 1, 2008, Brazil's President Luiz Inacio Lula da Silva and
Venezuela's President Hugo Chavez signed an agreement to allow
Petrobras to buy liquefied natural gas from Petroleos de
Venezuela.

According to Dow Jones, Ms. Foster said that Petroleos de
Venezuela will have two liquefied natural gas export terminals
operating on the Venezuelan coast in 2012 or 2013.  Ms. Foster
said that Petrobras won't take a stake in the terminals.

The liquefied natural gas from Venezuela will add to liquefied
natural gas imports Petrobras will receive from other nations,
Dow Jones says, citing Ms. Foster.  According to the Petrobras
official, Brazil is seeking to meet its gas needs.  Brazil will
still be an importer of gas for at least four or five years  
despite recent massive gas finds, Ms. Foster added.

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: Will Create Firm With Petroecuador
----------------------------------------------------------
News agency EFE reports that Petroleos de Venezuela S.A. will
create a company with Petroecuador this month.

According to EFE, the new company will construct Refineria del
Pacifico in El Aromo in Manabi, Ecuador.  The firm will be
launched on July 15, 2008.

Petroleos de Venezuela and Petroecuador would finance the joint
venture, Ecuador's Mines and Oil Minister Galo Chiriboga said.  
Venezuela's President Hugo Chavez and Ecuador's President Rafael
Correa Delgado will sign an environmental agreement that calls
for protection of the forest around El Aromo, as Petroleos de
Venezuela and Ecuador want to build the plant on an
"environmentally friendly terms" and create many jobs in Manabi,
the minister added.

EFE relates that Refineria del Pacifico will be able to process
some 300,000 barrels per day of crude.  It will allow Ecuador to
meet domestic demand for gasoline and export the fuel.

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.


                            ***********

Monday's edition of the TCR-LA delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-LA editors from a variety of outside
sources during the prior week we think are reliable.   Those
sources may not, however, be complete or accurate.  The Monday
Bond Pricing table is compiled on the Friday prior to
publication.  Prices reported are not intended to reflect actual
trades.  Prices for actual trades are probably different.  Our
objective is to share information, not make markets in publicly
traded securities.  Nothing in the TCR-LA constitutes an offer
or solicitation to buy or sell any security of any kind.  It is
likely that some entity affiliated with a TCR-LA editor holds
some position in the issuers' public debt and equity securities
about which we report.

Tuesday's edition of the TCR-LA features a list of companies
with insolvent balance sheets obtained by our editors based on
the latest balance sheets publicly available a day prior to
publication.  At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled.  Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets.  A company may establish reserves on its balance
sheet for liabilities that may never materialize.  The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.

A list of Meetings, Conferences and Seminars appears in each
Thursday's edition of the TCR-LA. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com

                            ***********


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

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

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

           * * * End of Transmission * * *