TCRLA_Public/080710.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

            Thursday, July 10, 2008, Vol. 9, No. 136

                            Headlines


A R G E N T I N A

ALITALIA SPA: May Avert Bankruptcy if Sale Pushes Through
DELTA AIR: District Judge Articulates Injunction in Mesa Suit
DELTA AIR: To Pull Out of Bakersfield, California by September 1
HUNTSMAN: Hexion Balks at Oct. 2 Extension Under Merger Pact
IPUEBLA SA: Proofs of Claim Verification Is Until Sept. 1

MY HOUSE: Proofs of Claim Verification Deadline Is Sept. 18
OS SA: Trustee to Submit General Report in Court Tomorrow
TELECOM ARGENTINA: Argo Fund Has Until Aug. 27 to Appeal
THE MALL STREET: Proofs of Claim Verification Is Until Sept. 15
UTSTARCOM INC: Closes US$240MM PCD Sale to AIG Vantage Affiliate

VISTEON CORP: Completes Sale of Swansea, UK Biz to Linamar Corp.


B E R M U D A

FOSTER WHEELER: Subsidiaries Acquire Quotient Engineering Assets


B R A Z I L

ARROW ELECTRONICS: Completes Buyout of Achieva Distribution Biz
BANCO NACIONAL: Loans BRL193.4 Million to G. Barbosa Comercial
DELPHI CORP: Reaches Deal With U.S. Labor Dept. on ERISA Claim
EMI GROUP: Names Elio Leoni-Sceti Music Unit CEO
GENERAL MOTORS: Denies Rumors on Further Brands Sale

HEXION: Balks at Huntsman's Merger Termination Extension
PERDIGAO SA: S&P Assigns BB+ Long-Term Corporate Credit Rating
TAM SA: Reports 75.3% International Market Share in June 2008
TELE NORTE: Parent Sells BRL1.61BB of Bonds to Local Investors
USINAS SIDERURGICAS: Discloses US$14.1 Bil. Expansion Plan

USINAS SIDERURGICAS: To Construct US$5.7BB Slab Mill in Santana
USINAS SIDERURGICAS: Mulls Acquisitions in U.S., Europe & LatAm


C A Y M A N  I S L A N D S

ACACIA CDO 4: Proofs of Claim Filing Deadline Is July 13
BLUE DRAGON: Deadline for Proofs of Claim Filing Is July 12
BOMBAY CO: Judge Lynn Approves Amended Disclosure Statement
CABLE & WIRELESS: Tim Adam to Leave CEO Post
CHAUMET AFFILIATES: Proofs of Claim Filing Deadline Is July 14

CORSAIR (CAYMAN): Proofs of Claim Filing Is Until July 13
CORSAIR (CAYMAN) 4: Fitch Cuts Credit-Linked Notes Rating to BB
NECAS LIMITED: Deadline for Proofs of Claim Filing Is July 14
TEMPLE CAPITAL: Proofs of Claim Filing Is Until July 14
WIN GOTANDA: Proofs of Claim Filing Deadline Is July 13


C H I L E

CHEMTURA CORP: S&P Keeps Watch on BB Ratings on Aborted Sale


C O L O M B I A

BANCOLOMBIA SA: Research Oracle Keeps Buy Rating for Stock
SOLUTIA INC: Signs US$182 Million Deal With Chinese Companies
SOLUTIA INC: Registers US$600 Million Stock and Debt Securities
SOLUTIA INC: Sells Town & Country Property for US$42.7 Million


E C U A D O R

DELTA AIR: Offers Two Non-Stop Flights Between U.S. and Ecuador
GAMAVISION: Gov't Seizes Station Due to Debt Dispute
TC NOTICIAS: Gov't Seizes Station Due to Debt Dispute
TC TELEVISION: Gov't Seizes Station Due to Debt Dispute
* ECUADOR: Bonds Tumble on News of F. Ortiz's Resignation


G R E N A D A

* GRENADA: Int'l Monetary Fund Okays US$4.8 Mil. Financing


J A M A I C A

AIR JAMAICA: Minister Seeks Cut in Parliament Members' Perks
AIR JAMAICA: Shirley Williams Defends Former Directors
NATIONAL WATER: Drought Affects 10% of Water Systems
SUGAR CO: People's Nat'l Party Seeks Clarification on Divestment


M E X I C O

CORPORACION GEO: To Release 2nd Quarter 2008 Results on July 24
FRESENIUS SE: APP Pharmaceuticals Deal Cues Fitch's Neg. Outlook
FRESENIUS SE: Inks US$5BB Merger Deal With APP Pharmaceuticals
FRESENIUS SE: Moody's May Lower Ba1 Ratings After Review
STEVE & BARRY'S: To File Chapter 11 Bankruptcy Protection

STEVE & BARRY'S: Retail Industry Experts Explain Firm's Downfall
WOLVERINE TUBE: Selling Canadian Plumbing Tube Biz for US$42MM
* MEXICO: Moody's Baa1/Stable Ratings Reflect Moderate Debts


N I C A R A G U A

INFINITY ENERGY: Gov't Council OKs Nicaraguan Exploration Deals


P U E R T O  R I C O

HEALTHSOUTH CORP: Acquires Columbia Medical Rehabilitation Unit
HORIZON LINES: To Release Second Quarter 2008 Earnings
THATCHER LAMASTUS: Case Summary & 6 Largest Unsecured Creditors


V E N E Z U E L A

PETROLEOS DE VENEZUELA: Will Pay US$56MM to Paria Gulf Partners


* Upcoming Meetings, Conferences and Seminars


                         - - - - -


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

ALITALIA SPA: May Avert Bankruptcy if Sale Pushes Through
---------------------------------------------------------
Alitalia S.p.A. could avoid entering extraordinary
administration if the Italian government successfully sells its
49.9% stake in the national carrier, Flavia Rotondi and Marco
Bertacche write for Bloomberg News citing Industry
Minister Claudio Scajola.

As previously reported in the TCR-Europe, Intesa Sanpaolo
S.p.A., the government's adviser for the sale of its stake in
Alitalia, is reviewing placing the carrier into administration.

Under the Marzano law -- which governs administration procedures
for large companies, Alitalia's core business would be separated
from its debt and place them under a new company.  Parmalat
Finanziaria S.p.A. and Cirio Finanziaria S.p.A. were
restructured under the Marzano law.  Intesa may propose to sell
Alitalia's unprofitable operations under an emergency
administration procedure.

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

Despite a EUR1.4 billion state-backed restructuring in 1997,
Alitalia posted net losses of EUR256 million and EUR907 million
in 2000 and 2001 respectively.  Alitalia posted EUR93 million in
net profits in 2002 after a EUR1.4 billion capital injection.
The carrier booked annual net losses of EUR520 million in 2003,
EUR813 million in 2004, EUR168 million in 2005, EUR625.6 million
in 2006, and EUR494.64 million in 2007.


DELTA AIR: District Judge Articulates Injunction in Mesa Suit
-------------------------------------------------------------
U.S. District Judge Clarence E. Cooper articulated the
preliminary injunction previously granted to Mesa Air Group
against Delta Air Lines, Inc., blocking the carrier from
terminating the regional flying agreement worth US$20,000,000 a
month, The Associated Press reports.

Delta moved many of Mesa's flights to congested John F. Kennedy
International Airport in New York and later used increased
flight cancellations by Mesa subsidiary Freedom Airlines to
justify its decision to end the Contract, Judge Cooper said in a
36-page decision filed June 25, 2008, with a federal court in
Georgia, according to the report.

Mesa was under the impression that it could exclude some flight
cancellations from JFK in its official completion rate, and
Delta did not inform Mesa that it would calculate completion
differently, Judge Cooper said, notes to the report.

Delta notified Mesa that it planned to terminate a contract as
of May 3, 2008, following allegations that Mesa failed to
maintain a specified completion rate -- the percentage of
scheduled flights that are flown within September and February.  
Delta maintained it could terminate the Contract absent Mesa's
maintenance of at least a 95% completion rate for three months
within a six-month period.

On March 28, 2008, Delta notified Mesa of its intent to
terminate a connection Agreement that includes, among other
arrangements, Mesa's agreement to operate 34 model ERJ-145
regional jets leased utilizing Delta's name.  In fiscal 2007,
the Connection Agreement accounted for approximately 20% of
Mesa's 2007 total revenues.  Delta sought 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.

Mesa complained that the cancellation of the contract will force
it to file for bankruptcy protection and cut 700 jobs.

A Delta spokeswoman told AP that the airline is disappointed
with the court's ruling and that it intends to appeal.

The Troubled Company Reporter said on June 5, 2008, that Mesa
Air Group Inc. won on May 29 a preliminary injunction from
the United States District Court for the Northern District of
Georgia in Atlanta, enjoining Delta Air Lines from terminating
its Connection Agreement with Mesa, and its wholly owned
subsidiary, Freedom Airlines Inc.

                          About Mesa Air

Mesa Air -- 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.

                         About Delta Air

Based in Atlanta, Georgia, Delta Air Lines Inc. (NYSE:DAL) --
http://www.delta.com/-- is the world's second-largest airline
in terms of passengers carried and the leading U.S. carrier
across the Atlantic, offering daily flights to 328 destinations
in 56 countries on Delta, Song, Delta Shuttle, the Delta
Connection carriers and its worldwide partners.  Delta flies to
Argentina, Australia and the United Kingdom.

The company and 18 affiliates filed for chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923).
Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents
the Debtors in their restructuring efforts.  Timothy R. Coleman
at The Blackstone Group L.P. provides the Debtors with financial
advice.  Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at
Akin Gump Strauss Hauer & Feld LLP, provide the Official
Committee of Unsecured Creditors with legal advice.  John
McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James
S. Feltman at Mesirow Financial Consulting, LLC, serve as the
Committee's financial advisors.

The Debtors filed a chapter 11 plan of reorganization and
disclosure statement explaining that plan on Dec. 19, 2007.  On
Jan. 19, 2007, they filed revisions to the plan and disclosure
statement, and submitted further revisions to the plan on
Feb. 2, 2007.  On Feb. 7, 2007, the Court approved the Debtors'
disclosure statement.  In April 25, 2007, the Court confirmed
the Debtors' plan.  That plan became effective on April 30,
2007.  The Court entered a final decree closing 17 cases on
Sept. 26, 2007.  (Delta Air Lines Bankruptcy News, Issue No.
102; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


DELTA AIR: To Pull Out of Bakersfield, California by September 1
----------------------------------------------------------------
Delta Air Lines, Inc. will pull out of Bakersfield, California,
effective September 1, 2008, to trim fuel costs, The Bakersfield
Californian reports.

The route elimination covers Kern County, California's only
direct connection to Salt Lake City.

Delta spokesperson Anthony Black said Delta's decision to
terminate flight operations at Bakersfield is part of a 13% cut
in domestic capacity.  Ultimately, however, "it comes down to
operational costs directly related to fuel," Mr. Black said,
according to the report.

Mr. Black urged anyone with a ticket to fly from Bakersfield to
Salt Lake City after September 1 to contact Delta for (i) a full
refund, (ii) a corresponding flight out of Los Angeles or Santa
Barbara, or (iii) a ticket on another carrier out of Meadows
Field.

Flights, however, are continuing from Bakersfield to Phoenix,
Denver, Los Angeles and San Francisco, Kent County airports
analysis and marketing manager Teresa Hitchcock told the
newspaper.

Ms. Hitchcock said the news "came as a surprise" because Delta
recently made plans to reinstate a second daily flight to Salt
Lake City, which is set to run July 10 through Aug. 18, 2008,
the report says.

Delta is the third airline to leave Meadows Field Airport in
2008, the newspaper notes.

                         About Delta Air

Based in Atlanta, Georgia, Delta Air Lines Inc. (NYSE:DAL) --
http://www.delta.com/-- is the world's second-largest airline
in terms of passengers carried and the leading U.S. carrier
across the Atlantic, offering daily flights to 328 destinations
in 56 countries on Delta, Song, Delta Shuttle, the Delta
Connection carriers and its worldwide partners.  Delta flies to
Argentina, Australia and the United Kingdom.

The company and 18 affiliates filed for chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923).
Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents
the Debtors in their restructuring efforts.  Timothy R. Coleman
at The Blackstone Group L.P. provides the Debtors with financial
advice.  Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at
Akin Gump Strauss Hauer & Feld LLP, provide the Official
Committee of Unsecured Creditors with legal advice.  John
McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James
S. Feltman at Mesirow Financial Consulting, LLC, serve as the
Committee's financial advisors.

The Debtors filed a chapter 11 plan of reorganization and
disclosure statement explaining that plan on Dec. 19, 2007.  On
Jan. 19, 2007, they filed revisions to the plan and disclosure
statement, and submitted further revisions to the plan on
Feb. 2, 2007.  On Feb. 7, 2007, the Court approved the Debtors'
disclosure statement.  In April 25, 2007, the Court confirmed
the Debtors' plan.  That plan became effective on April 30,
2007.  The Court entered a final decree closing 17 cases on
Sept. 26, 2007.  (Delta Air Lines Bankruptcy News, Issue No.
102; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


HUNTSMAN: Hexion Balks at Oct. 2 Extension Under Merger Pact
------------------------------------------------------------
Hexion Specialty Chemicals, Inc. issued a statement in response
to Huntsman Corporation's decision to extend the merger
agreement termination date and to the counterclaims filed
against Hexion in the Delaware Court of Chancery.

As disclosed in the Troubled Company Reporter on July 3, 2008,
Huntsman's board of directors, unanimously, provisionally
authorized Huntsman Corp. to exercise its right to extend the
merger agreement with Hexion Specialty by an additional ninety
days to Oct. 2, 2008, as permitted by the terms of the merger
agreement.

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.

Under the merger agreement, Huntsman is permitted to extend the
termination date until Oct. 2, 2008, only if its Board of
Directors determines in good faith that there is an objectively
reasonable probability that the transaction can be completed in
that time frame.

"We do not understand how Huntsman's Board of Directors could in
good faith make that determination," Craig O. Morrison, Hexion's
Chairman, President and CEO said.  "There is no factual basis to
conclude that the combined company would be solvent.  As a
result, the merger is not viable.  We also believe that Huntsman
has suffered a material adverse effect in its business.  
Nevertheless, we continue to meet our contractual obligations as
demonstrated by the European Commission's decision on Monday to
approve the Hexion-Huntsman merger."

"Huntsman's counterclaims are without merit," Mr. Morrison
further noted.  "Although we have asked repeatedly for
Huntsman's permission to unseal our Delaware complaint, and have
supplied Huntsman with background supporting the Duff & Phelps
opinion, they have so far refused to allow their shareholders to
see the factual basis for our claims.  We remain confident that
we will prevail."

"Hexion is very well positioned to service its customers and to
compete and grow globally," Mr. Morrison continued.  "We have a
long-dated, stable capital structure and have more than
US$475 million of liquidity."

                         Background

As reported by the Troubled Company Repoter on July 13, 2007,
Huntsman greed to a definitive merger agreement with Hexion
Specialty, 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, 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 the merger 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, primarily 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.

                    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 Investor Service placed Huntsman Corporation's corporate
family rating at Ba3 in June 2007.  The rating still holds to
date.


IPUEBLA SA: Proofs of Claim Verification Is Until Sept. 1
---------------------------------------------------------
Ruben Faure, the court-appointed trustee for Ipuebla SA's
bankruptcy proceeding, will be verifying creditors' proofs of
claim until Sept. 1, 2008.

Mr. Fabian will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 9 in Buenos Aires, with the assistance of Clerk
No. 17, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections
and challenges that will be raised by Ipuebla and its creditors.

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

A general report that contains an audit of Ipuebla's accounting
and banking records will be submitted in court.

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

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

The debtor can be reached at:

          Ipuebla SA
          L. N. Alem 465
          Buenos Aires, Argentina

The trustee can be reached at:

          Ruben Faure
          Avenida Corrientes 1312
          Buenos Aires, Argentina


MY HOUSE: Proofs of Claim Verification Deadline Is Sept. 18
-----------------------------------------------------------
Francisco Fabian, the court-appointed trustee for My House
Propiedades SRL's bankruptcy proceeding, will be verifying
creditors' proofs of claim until Sept. 18, 2008.

Mr. Fabian will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 17 in Buenos Aires, with the assistance of Clerk
No. 33, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections
and challenges that will be raised by My House and its
creditors.

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

A general report that contains an audit of My House's accounting
and banking records will be submitted in court.

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

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

The debtor can be reached at:

          My House Propiedades SRL
          Saraza 828
          Buenos Aires, Argentina

The trustee can be reached at:

          Francisco Fabian
          Uruguay 328
          Buenos Aires, Argentina


OS SA: Trustee to Submit General Report in Court Tomorrow
---------------------------------------------------------
Enrique Esteban, Oscar Orlando Di Salvo y Alberto G. J.
Contribunale -- the court-appointed trustee for O.S. S.A.'s
reorganization proceeding -- will submit to the National
Commercial Court of First Instance in Rosario, Santa Fe, a
general report containing an audit of the firm's accounting and
banking records on July 11, 2008.

Mr. Esteban verified creditors' proofs of claim until March 14,
2008.  He presented the validated claims in court as
individual reports on May 16, 2008.   

Creditors will vote to ratify the completed settlement plan
during the assembly on Dec. 23, 2008.

The debtor can be reached at:

         O.S. S.A.
         San Martin 985, Granadero Baigorria
         Santa Fe, Argentina

The trustee can be reached at:

         Enrique Esteban, Oscar Orlando Di Salvo y
         Alberto G. J. Contribunale
         Rioja 1268, Rosario
         Santa Fe, Argentina


TELECOM ARGENTINA: Argo Fund Has Until Aug. 27 to Appeal
--------------------------------------------------------
In a regulatory filing with the U.S. Securities and Exchange
Commission, Telecom Argentina S.A. said that the time period for
Argo Fund, Ltd, to appeal the judgment issued by the U.S. Court
of Appeals for the Second Circuit of the State of New York in
connection with the company's proceeding under Section 304 of
the United States Bankruptcy Code ends on Aug. 27, 2008.

As previously reported in the Troubled Company Reporter-Latin
America, the Second Circuit Court of Appeals has rejected Argo
Fund's request to pursue its own claims against Telecom
Argentina over a 2005 debt restructuring.

Buenos Aires-based Telecom Argentina filed a bankruptcy
protection in the U.S. bankruptcy court in Manhattan in 2005.  
It sought protection from U.S. creditors who hadn't signed off
on its debt restructuring through the Argentine process called
Acuerdo Preventivo Extrajudicial.  Argo Fund didn't agree to the
restructuring claiming that the APE proceeding was invalid in
U.S. courts as it lacked certain protections and wasn't
undertaken in "good faith".

Argo Fund sought to have its own proceedings against Telecom
Argentina in the U.S.  The court rejected Argo Fund's
claims in February 2006, and the ruling was upheld on appeal
later that year by the U.S. District Court in Manhattan.  
The Second Circuit Court of Appeals further upheld the ruling
declaring that the company's foreign bankruptcy proceeding could
be recognized in U.S. courts.  "Argo's challenge to the APE in
the United States, after refusing to participate even by
objection in the Argentine proceedings and after Telecom closed
on the APE, is contrary to our long-standing recognition that
foreign courts have an interest in conducting insolvency
proceedings concerning their own domestic business entities,"
the Second Circuit added.

Headquartered in Buenos Aires, Telecom Argentina S.A. --
http://www.telecom.com.ar/index-flash.html-- provides            
telephone-related services, such as international long-distance
service and data transmission and Internet services, and through
its subsidiaries, wireless telecommunications services,
international wholesale services and telephone directory
publishing.

                         *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 21, 2008, Fitch Ratings upgraded Telecom Argentina's
foreign and local currency issuer default ratings to 'B+' from
'B'.  Fitch said the outlook is positive.


THE MALL STREET: Proofs of Claim Verification Is Until Sept. 15
---------------------------------------------------------------
Carlos Alberto Llorca, the court-appointed trustee for The Mall
Street SRL's bankruptcy proceeding, will be verifying creditors'
proofs of claim until Sept. 15, 2008.

Mr. Llorca will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 5 in Buenos Aires, with the assistance of Clerk
No. 10, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections
and challenges that will be raised by The Mall Street and its
creditors.

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

A general report that contains an audit of The Mall Street's
accounting and banking records will be submitted in court.

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

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

The debtor can be reached at:

          The Mall Street SRL
          Agustin Alvarez 5022
          Buenos Aires, Argentina

The trustee can be reached at:

          Carlos Alberto Llorca
          Carlos Pellegrini 305
          Buenos Aires, Argentina


UTSTARCOM INC: Closes US$240MM PCD Sale to AIG Vantage Affiliate
----------------------------------------------------------------
UTStarcom Inc. completed the divestiture of its Personal
Communications Division on July 1, 2008.  The proceeds of
approximately US$240 million, based on the working capital
levels on June 30, 2008, are subject to certain adjustments.  

On July 1, UTStarcom reached an agreement to sell its Personal
Communications Division to a formed entity controlled by AIG
Vantage Capital, a part of AIG Investments.  The transaction has
been unanimously approved by UTStarcom's board of directors.

The company stated that the divestiture of PCD is consistent
with UTStarcom's strategic focus disclosed in late 2007, which
is aimed at maximizing UTStarcom's opportunities in its core IP-
based product offerings in growing economies around the world.

The PCD business, which distributes handsets and related
accessories in North America, was identified as a divestiture
opportunity at that time.  This transaction, combined with the
divestiture of the Mobile Solutions Business Unit, will complete
two milestones in simplifying the operations of UTStarcom.

Subsequent to the transaction, the privately held company will
be called Personal Communications Devices LLC and will be led by
PCD's management team who will be part-owners of the company
with AIG Vantage Capital and other investors.

The Handset business unit of UTStarcom will continue to design
and provide devices to be sold in the Americas through Personal
Communications Devices LLC as part of a supply agreement.
UTStarcom will also sell devices directly to carriers in other
areas of the world.

According to the agreement, UTStarcom could also receive up to
US$50 million based on a three-year earn out provision.

Merrill Lynch & Co. acted as financial advisor to UTStarcom.

                    About AIG Vantage Capital

AIG Vantage Capital is the investment arm of AIG Investments --
http://www.aiginvestments.com/-- fka AIG Global Investment  
Investment Group or AIGGIG which manages customized portfolios
of
equities, fixed-income securities, hedge funds, private equity,
and real estate for pension funds, foundations, and financial
institutions.

                      About UTStarcom Inc.

Headquartered in Alameda, Calif., UTStarcom Inc. (Nasdaq: UTSI)
-- http://www.utstar.com/-- provides IP-based, end-to-end    
networking solutions and international service and support.  The
company develops, manufactures and markets its broadband,
wireless, and terminal solutions to network operators in both
emerging and established telecommunications markets worldwide.  
UTStarcom was founded in 1991 and is headquartered in Alameda,
California.  The company has research and development centers in
the USA, Canada, China, Korea and India.  The company has
offices in Argentina, Brazil and Mexico.

PricewaterhouseCoopers LLP, in San Jose, California, expressed
substantial doubt about UTStarcom Inc.'s ability to continue as
a going concern after auditing the company's consolidated
financial statements for the year ended Dec. 31, 2007.  The
auditing firm pointed to the company's recurring net losses,
negative cash flows from operations and significant debt
obligations.  

On March 3, 2008, the company repaid the convertible
subordinated notes of US$289.5 million which included a
principal payment of US$274.6 million and the accrued interest
of US$14.9 million.

The company reported an operating loss of US$30.9 million for
the quarter ended March 31, 2008.



VISTEON CORP: Completes Sale of Swansea, UK Biz to Linamar Corp.
----------------------------------------------------------------
Visteon Corporation completed the sale of its Swansea, United
Kingdom, operation to Linamar Corporation.  

As reported in the Troubled Company Reporter on Oct. 22, 2007,
Visteon signed a non-binding Memorandum of Understanding
outlining the understanding and status of discussions regarding
the sale of its Swansea, United Kingdom operation to Linamar
Corporation.

TCR said that the sale, which supported Visteon's three-year
improvement plan, was subject to due diligence, certain third
party agreements, definitive documentation, anti-trust clearance
and corporate approvals.
    
The Swansea sale represents a significant milestone in Visteon's
effort to address non-core facilities and improve its financial
performance in connection with its three-year improvement plan.

"We are making solid progress in addressing the financial
performance of our UK operations and this is an important step
in that process," Donald J. Stebbins, Visteon president and
chief executive officer, said.  "This sale is the result of
significant efforts to find a viable alternative for the chassis
operations at the Swansea plant, which are not aligned with
Visteon's core product groups."

The Swansea operation, Visteon's largest operation in the UK,
generated negative gross margin of approximately US$40 million
on sales of approximately US$80 million during 2007.  The
company transferred certain Swansea-related assets to a newly
created and entity whose shares were acquired by Linamar for
nominal cash consideration.

Visteon expects to record losses approximating US$50 million in
connection with this transaction, of which approximately
US$15 million is expected to be reimbursed from the
restructuring escrow account.

In addition to the sale of Swansea, in the second quarter of
2008 Visteon also completed the planned closure of two non-core
fuel tank facilities in Germany and ceased production at its
operation in Bedford, Indiana, USA.  These actions bring the
number of completed actions to 23 of 30 identified restructuring
actions under Visteon's improvement plan.  

Furthermore, Visteon has disclosed its intention to close its
fuel tank facility in Missouri early in the third quarter of
2008, after which only six restructuring actions will remain.

Visteon continues to take additional actions to improve its cost
structure.  In June, the intended to close its interiors
facility in Durant, Mississippi, USA and consolidate production
into other existing facilities.  The company has also taken
steps to address its capital structure and reduce its near term
debt maturities.

In June, Visteon repurchased US$344 million in aggregate
principal amount of its senior notes due in 2010 and issued
US$206 million in aggregated principal amount of new senior
notes due in 2016.

"Our significant restructuring efforts have resulted in
fundamental improvements in our global operations as we continue
to focus on our core products," Mr. Stebbins said.  "We have
been focused on implementing our restructuring actions on
schedule and accelerating our plan wherever possible."  

"Although the automotive industry is facing very difficult times
in North America, this region represents less than 30 percent of
Visteon's total sales," Mr. Stebbins added.  "Production
decreases by North American automakers are being largely offset
by growth in other regions of the world, particularly in Asia.  
Our diversification by customer and geography, coupled with our
improvement actions, has allowed Visteon to continue to improve
its financial performance during the first half of 2008, despite
the difficult North American market.  This improved financial
performance will be discussed during Visteon's conference call
announcing our second quarter
results."

                  About Linamar Corporation
  
Headquartered in Guelph, Ontario, Linamar Corporation (TSE:LNR)
-- http://www.linamar.com/-- designs, develops and manufactures   
precision-machined components, modules and systems for engine,
transmission, chassis and industrial markets.  It has 36
manufacturing locations, research and development centers and
sales offices in Canada, United States, Mexico, Germany, Hungary
and Japan, Korea and China.  The company is organized into six
groups: Engine, Transmission, Chassis, Europe, Asia-Pacific and
Industrial.  

                   About Visteon Corporation

Based in Van Buren Township, Michigan, Visteon Corp. (NYSE: VC)
-- http://www.visteon.com/-- is a global automotive supplier       
that designs, engineers and manufactures innovative climate,
interior, electronic, and lighting products for vehicle
manufacturers, and also provides a range of products and
services to aftermarket customers.  The company's other
corporate offices are in Shanghai, China; and Kerpen, Germany.  
The company has Latin America offices in Argentina, Brazil and
Mexico.  The company has facilities in 26 countries and employs
approximately 43,000 people.  Annual product revenues were
US$11.3 billion in 2007.

Visteon Corporation's balance sheet at March 31, 2008, showed
total assets of US$7.2 billion and total liabilities of
US$7.3 billion resulting in a total shareholders' deficit of
about US$136 million.

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 27, 2008, Moody's Investors Service assigned a Caa1 (LGD4,
66%) rating to Visteon Corporation's new senior unsecured notes
maturing in 2016.  The new senior unsecured notes have been
issued consistent with the structure and terms that were in
place when the securities were initially proposed and assigned a
prospective rating on May 22, 2008.

Fitch Ratings has affirmed Visteon Corporation's ratings as: (i)
issuer default rating (IDR) at 'CCC'; (ii) senior secured bank
facilities at 'B/RR1'; and (iii) unsecured notes at 'CC/RR6'.
Fitch has also assigned a rating of 'CC/RR6' to Visteon's new
12.25% senior unsecured notes being issued as part of the
company's debt exchange offer. The ratings cover approximately
US$2.8 billion in debt.  The rating outlook is negative.



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

FOSTER WHEELER: Subsidiaries Acquire Quotient Engineering Assets
----------------------------------------------------------------
Foster Wheeler Ltd.'s Houston-headquartered operating unit,
Foster Wheeler USA Corporation and FWUSA's Indian subsidiary,
part of its Global Engineering and Construction Group, have
acquired the bulk of the assets of Quotient Engineering, Inc.

Established in 2001, Quotient is a full-service engineering and
design company with its management headquartered in Houston,
Texas, and an engineering center in Kolkata, India.  Quotient
provides high-quality, low-cost services to process-based
industries: petrochemicals, refining, upstream oil and gas, and
power industries.

The terms of the transaction were not disclosed.

"This acquisition will enable us to accelerate the development
of our high-quality, low-cost engineering capability in India.  
We already have well-established and significant operations
located in Chennai and Kolkata and see this acquisition as
highly complementary to our existing Kolkata operation," said W.
Troy Roder, president and chief executive officer, Foster
Wheeler USA Corporation.  "The newly acquired engineering center
in Kolkata, which has approximately 90 staff, will deliver its
services primarily to our Houston operation in support of Foster
Wheeler USA's growth strategy, and enhance the ability of our
U.S. operation to deliver high-value, cost-competitive solutions
to its clients.  In addition, our Houston operation has already
established a strong working relationship with many of the newly
acquired staff, having worked with the Quotient team on Indian
and international projects for some time."

Foster Wheeler Ltd. (Nasdaq: FWLT) -- http://www.fwc.com/--
offers a broad range of engineering, procurement, construction,
manufacturing, project development and management, research and
plant operation services.  Foster Wheeler serves the refining,
upstream oil and gas, LNG and gas-to-liquids, petrochemical,
chemicals, power, pharmaceuticals, biotechnology and healthcare
industries.  The corporation is based in Hamilton, Bermuda, and
its operational headquarters are in Clinton, New Jersey.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
April 28, 2008, Moody's Investors Service upgraded Foster
Wheeler LLC's corporate family rating to Ba2 from Ba3, and
raised its probability of default Rating to Ba2 from Ba3.  The
outlook continues to be positive.

As reported in the Troubled Company Reporter-Latin America on
Feb. 5, 2008, Standard & Poor's Ratings Services revised its
outlook on Foster Wheeler Ltd. to positive from stable.  At the
same time, S&P affirmed its 'BB' corporate credit rating on the
company.  The company reported total debt of approximately
US$150 million at Sept. 30, 2007.



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

ARROW ELECTRONICS: Completes Buyout of Achieva Distribution Biz
---------------------------------------------------------------
Arrow Electronics Inc. has completed its acquisition of the
components distribution business from parent company Achieva
Ltd., a value-added electronic components distributor in Asia
Pacific.

As reported in the Troubled Company Reporter on March 10, 2008,
Arrow Electronics signed a definitive agreement pursuant to
which Arrow will purchase the components distribution business
from parent company Achieva Ltd.  The transaction was subject to
approval by the shareholders of Achieva Ltd.

Arrow anticipated the transaction will be immediately accretive
to earnings in the first twelve months by US$.01 to US$.03 per
share and will meet the company's acquisition objectives for
return on invested capital.

"With this acquisition, we have gained a highly experienced
management team and strengthened our position in the ASEAN  or
Association of Southeast Asian Nations and greater China
regions," William E. Mitchell, chairman and chief executive
officer of Arrow Electronics Inc., said.  "The company's
technical focus will enhance our existing demand creation
abilities and position Arrow for continued profitable, above-
market growth in the Asia Pacific region."

                         About Achieva Ltd.

Achieva Ltd. is focused on creating value for its partners
through technical support and demand creation activities.  The
company's product range covers semiconductor components as
application specific integrated circuits, programmable logic
devices, digital signal processing chips and microchip-
controller units.  With over 200 employees, the company has a
presence in eight countries: Singapore, Taiwan, China, India,
Malaysia, Philippines, Thailand, and Korea, and primarily serves
small and medium sized customers in the data communications,
telecommunications, lighting, industrial and digital consumer
end markets.

                     About Arrow Electronics

Headquartered in Melville, New York, Arrow Electronics Inc. --
http://www.arrow.com/-- provides products, services and  
solutions to industrial and commercial users of electronic
components and computer products.   Arrow serves as a supply
channel partner for nearly 600 suppliers and more than 130,000
original equipment manufacturers, contract manufacturers and
commercial customers through a global network of over 270
locations in 53 countries and territories.

The company operates in France, Spain, Portugal, Denmark,
Estonia, Finland, Ireland, Latvia, Lithuania, Norway, Sweden,
Italy, Germany, Austria, Switzerland, Belgium, the Netherlands,
United Kingdom, Argentina, Brazil, Mexico, Australia, China,
Hong Kong, Korea, Philippines and Singapore.

                           *     *     *

Arrow Electronics senior subordinated stock continues to carry
Moody's Investors Service's Ba1 rating.  The company's senior
preferred stock is rated at Ba2.


BANCO NACIONAL: Loans BRL193.4 Million to G. Barbosa Comercial
--------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social SA has
approved a BRL193.4 million financing arrangement for the retail
chain G. Barbosa Comercial Ltda. to accomplish its investment
plan 2007/2009.  Eighteen new stores will be implemented, five
existing units will be expanded and the entire chain,
distributed through the states of Sergipe, Bahia and Alagoas,
will be upgraded.  The project will generate 4,874 direct jobs,
56% increase in the company's staff.

BNDES' funds will be mainly used in civil works, assembly and
facilities, and purchase of Brazilian machines and equipment.  
The financing corresponds to 70% of total investment to be made
by G. Barbosa, of BRL276.3 million.  The company will give the
remaining BRL82.9 million.  Out of the 18 new stores to be
implemented:

   -- three will be hypermarkets (sales area above 5,000 m2);

   -- nine small hypermarkets (sales area between 2,500 and
      5,000 m2);

   -- three superstores (sales area between 800 and 2.500 m2);
      and

   -- three of them will be electroshow stores (sales area
      between 100 and 250 m2).

According to the Brazilian Association of Supermarkets (Abras),
G. Barbosa ranks among the five largest supermarket chain in
Brazil.  It is the largest company in Sergipe and the second in
the Northeast.  It has 46 stores in Sergipe, Bahia and Alagoas,
and employs around 8.6 thousand people.

Founded in 1955, by the trader Gentil Barbosa, the company
started activities as a grocery store in the commercial center
of Aracaju.  Today, its shareholding control is in the hands of
the Chilean group Cencosud, which operates in the segments of
supermarkets, homecenters, shopping centers, entertainment and
department stores, mainly in Chile and Argentina.

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.


DELPHI CORP: Reaches Deal With U.S. Labor Dept. on ERISA Claim
--------------------------------------------------------------
The Hon. Robert Drain of the U.S. Bankruptcy Court for the
Southern District of New York has approved a stipulation between
Delphi Corporation and the Secretary of the United States
Department of Labor.

On July 31, 2006, the Secretary, on behalf of the Delphi
Personal Savings Plan for Hourly Rate Employees in the United
States, filed Claim No. 15135 against Delphi, which asserts an
unsecured non-priority claim in an unliquidated amount arising
from alleged violations of the Employee Retirement Income
Security Act of 1974 in connection with the investment of
certain stock dividends held in the Plan's General Motors US$1-
2/3 Par Value Common Stock Fund from 2000 to 2003 and certain
remedial actions taken in connection therewith in 2004 and 2005.  

The Debtors objected to Claim No. 15135 in their 19th Omnibus
Claims Objection.  The Secretary disputed the Objection.

On Aug. 2, 2007, the Secretary, on behalf of the Plan, filed
Claim No. 16638, which amended Claim No. 15135 and asserted an
unsecured non-priority claim of US$3,233,000.  The Debtors
objected to Claim No. 16638 in their 21st Omnibus Claims
Objection.

On Oct. 25, 2007, the Bankruptcy Court issued an order
disallowing and expunging Claim No. 16638 in its entirety and
providing that Claim No. 15135 will remain on the Debtors'
claims register.

On March 31, 2008, the Secretary, on behalf of the Plan, filed
Claim No. 16815, which replaced the Original Claim and asserted
an unsecured non-priority claim of US$3,232,133 arising from
alleged violations of ERISA in connection with the investment of
certain stock dividends held in the Plan's General Motors US$1-
2/3 Par Value Common Stock Fund from 2000 to 2003 and certain
remedial actions taken in connection therewith in 2004 and 2005.

On May 12, 2008, Delphi presented to the Secretary a petition
under Section 502(l)(3)(B) of ERISA, 29 U.S.C. Section
1132(l)(3)(B), and 29 C.F.R. Section 2570.85, seeking a waiver
of any civil penalty arising from the Secretary's recovery from
Delphi of any applicable recovery amount on account of the
Claim.  On May 19, 2008, the Secretary granted the Petition.

On June 12, 2008, to resolve the 19th Omnibus Claims Objection
with respect to the Original Claim, Delphi and the Secretary
entered into a settlement agreement.

The Settlement Agreement provides for these terms:

    -- Delphi, without admitting or denying the allegations made
       by the Secretary concerning the Claim, acknowledges and
       agrees that the Claim will be allowed as a general
       unsecured claim against Delphi for US$1,623,392.

    -- The Secretary assigned to Delphi in its capacity as a
       Plan fiduciary any unexpired Rights received by the
       Secretary or the U.S. Department of Labor on account of
       the Claim prior to the execution of the Settlement
       Agreement by the Secretary and Delphi.

    -- Any other consideration distributed by the Debtors on
       account of the Claim will be distributed directly to
       Delphi in its capacity as a Plan fiduciary.

    -- Delphi will distribute any Consideration it receives at
       no cost to the Plan in accordance with the agreed
       allocation plan.

    -- Delphi agrees to cause certain third parties to deliver
       to Delphi in its capacity as a Plan fiduciary a cash
       payment, and to distribute the Third-Party Payment at no
       cost to the Plan in accordance with the Allocation Plan.

    -- The Plan will release and waive any right to assert
       against the Third Parties any claim, cause of action,
       demand, or liability of every kind and nature whatsoever,
       including those arising under contract, statute, or
       common law, whether or not known or suspected at this
       time, which relate to the Claim or any matters giving
       rise to the Claim.

    -- To the extent the distribution of Consideration in the
       form of securities to the Plan or the Plan Releases could
       be construed as prohibited transactions under ERISA, the
       transactions qualify as exempt transactions under        
       Prohibited Transaction Exemption 79-15, provided that the
       Court authorizes the transactions.

Delphi believes it is authorized to enter into the Settlement
Agreement either because the Claim involves ordinary course
controversies or pursuant to the Court's orders under Sections
363, 502, and 503 of the Bankruptcy Code and Rule 9019(b) of the
Federal Rules of Bankruptcy Procedure.

The parties' Court-approved stipulation provides that:

    1. The Claim will be allowed for US$1,623,392 and will be
       treated as an allowed general unsecured non-priority
       claim against the estate of Delphi and will not be
       subject to reconsideration pursuant to Section 502(j) of
       the Bankruptcy Code.

    2. Within five business days after the Secretary receives
       written notice from Delphi that Delphi, in its capacity
       as a Plan fiduciary, has received the Third-Party
       Payment, the Secretary will withdraw with prejudice its
       responses to the 19th Omnibus Claims Objection.

    3. Delphi will distribute the Consideration to the Plan in
       accordance with the Settlement Agreement.

    4. The Plan will implement the Plan Releases.

                U.S. Labor Department's Statement

The U.S. Department of Labor and Delphi Corp. have obtained
approval of settlement by the U.S. bankruptcy court in New York
that allows the government to recover more than US$2.2 million
in retirement plan assets owed to the Delphi Personal Savings
Plan for Hourly Employees in the United States.

"This settlement will ensure that assets are available to pay
future retirement benefits for these workers," said Secretary
of Labor Elaine L. Chao.

The bankruptcy settlement resolves a claim brought by the Labor
Department on July 31, 2006, seeking to restore assets to the
savings plan lost as a result of investment activities.  The
claim and settlement resulted from an investigation by the
department's Employee Benefits Security Administration into
improperly invested dividends the company failed to properly
disclose or correct. Between 2000 and 2003, dividends were
improperly invested in General Motors Corp. stock, rather than
in an income fund as required by Delphi's savings plan.

The investigation was conducted by the Detroit District Office
of EBSA's Cincinnati region. Employers and workers can reach the
regional office at 859-578-4680 or toll-free at 866-444-3272 for
help with problems relating to private sector retirement and
health plans.  In fiscal year 2007, EBSA achieved monetary
results of US$1.5 billion related to pension, 401(k), health and
other benefits for millions of American workers and their
families.

                      About Delphi Corp.

Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ)
-- http://www.delphi.com/-- is the single supplier of vehicle      
electronics, transportation components, integrated systems and
modules, and other electronic technology.  The company's
technology and products are present in more than 75 million
vehicles on the road worldwide.  Delphi has regional
headquarters in Japan, Brazil and France.

The company filed for Chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481).  John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts.  Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represent the Official Committee of Unsecured Creditors.  As of
March 31, 2007, the Debtors' balance sheet showed
US$11,446,000,000 in total assets and US$23,851,000,000 in total
debts.

The Court approved Delphi's First Amended Joint Disclosure
Statement and related solicitation procedures for the
solicitation of votes on the First Amended Plan on Dec. 20,
2007.  The Court confirmed the Debtors' First Amended Plan on
Jan. 25, 2008.  The Plan has not been consummated after a group
led by Appaloosa Management, L.P., backed out from their
proposal to provide US$2,550,000,000 in equity financing to
Delphi.

(Delphi Bankruptcy News, Issue No. 135; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)


EMI GROUP: Names Elio Leoni-Sceti Music Unit CEO
------------------------------------------------
EMI Group Plc has appointed Elio Leoni-Sceti as Chief Executive
of its recorded music division, EMI Music.

Mr. Leoni-Sceti joins from Reckitt Benckiser, the FTSE30
consumer brand company, where he has been Executive Vice
President, Europe.  His stellar 16 year career with Reckitt
Benckiser has seen him lead some outstanding brand successes and
business turnarounds in the United States and across Europe.

Under his tenure as Global Head of Category (2001-05), the
company strengthened its recognized leadership in product
innovation and global branding, while creating a new culture of
integrated media and communication. In the last two years, as
Head of Europe, Elio accelerated business growth in Europe, and
built a stronger competitive position for its major brands.

"I am delighted that Elio is joining as Chief Executive of EMI
Music to lead the most exciting business transformation in the
music industry," Guy Hands, EMI Group chairman, said.  "His
career achievements and outstanding leadership qualities are
ideally suited to ensuring that EMI is a successful business.
Elio has the passion, drive and belief in the future of the
music industry to realize the ambitions we all have for EMI."

"Having completed the organizational restructuring at the end of
June and finalized our strategic work, Elio joins at the right
time to shape, drive and lead EMI to become the world's most
artist focused and consumer friendly music company.  With Elio's
arrival as Chief Executive, I will be stepping back to become
Non Executive Chairman of EMI.  I would like to thank all our
artists, staff and business partners for their continuing
support and hard work to effect the changes underway and the
positive results being achieved."

"This is a hugely exciting time for the music business and for
EMI," Mr. Leoni-Sceti said.  "EMI is the world's longest
established music company operating in over 40 markets globally
with a roster of some of the most successful artists in the
world."  

"They range from long established names such as The Beatles,
Pink Floyd, Queen and The Beach Boys to contemporary singers
such as Kylie Minogue, Lily Allen and Norah Jones.  Its current
successes include Coldplay and Katy Perry topping both the UK
and U.S. charts.  The potential that can be realised in this
industry is massive, music consumption is growing more than ever
across the world and I cannot wait to get started and to working
with EMI's artists and employees."

                       About EMI Group plc

Headquartered in London, United Kingdom, EMI Group PLC --
http://www.emigroup.com/-- is the world's largest independent     
music company, operating directly in 50 countries, with
licensees in a further 20 and employs around 5,500 people.  The
group has operations in Brazil and China.  In August 2007 EMI
was acquired by private equity firm Terra Firma.

At March 31, 2007, EMI Group's consolidated balance sheet
revealed GBP1.5 billion in total assets, GBP2.65 billion in
total liabilities resulting to GBP1.15 billion in shareholders'
deficit.


GENERAL MOTORS: Denies Rumors on Further Brands Sale
----------------------------------------------------
Mark LaNeve, General Motor Corp.'s head of sales, denied
speculations that the largest U.S. car manufacturer intends to
sell or close more brands, an alternative that would streamline
costs, The Wall Street Journal relates, citing a letter to
dealers obtained by Down Jones Newswires.  The letter was in
response to a WSJ news story on Monday that cited unnamed
sources.

Mr. LaNeve's letter recounts that it has no plans to sell the
Saturn brands as the paper reported.  Although the company has
dropped the Ion, sales for the Aura, Vue, Outlook, and Astra is
going better.  As disclosed in the Troubled Company Reporter on
July 2, 2008, The Saturn division had strong sales in June with
Sky total sales up 62%, Aura up 41% and Vue up 40%.  The Astra
had sales of nearly 900 vehicles.  GM's popular crossover Buick
Enclave, GMC Acadia and Saturn Outlook together accounted for
more than 8,800 vehicle sales in the month as demand for the
vehicles continues to strain available supply.

As disclosed in the Troubled Company Reporter on June 26, 2008,
GM hired Citibank to evaluate strategic alternatives for the
automaker's Hummer brand, including the assessment of
prospective buyers, Reuters reports, citing GM's U.S. sales
chief Mark LaNeve.  GM CEO Rick Wagoner said the move is in
response to the rapid rise n oil prices and the resulting
changes in the U.S., changes that it believes are more
structural than cyclical.  Sales of the Hummer brand dropped 62%
in May, compared with May 2007 and sales of the brand were off
36% January through May.

Mr. LaNeve also stated in the letter to dealers that GM's June
sales were higher than Ford, Chrysler and Toyota on a year-over-
year basis.  Saturn sales were up 9% retail.  Mr. LaNeve urged
dealers to focus on sales and customers.  He insisted that due
to the automotive industry downturn, rumors abound.  He has
asked dealers to contact him directly for any questions.

A full-text copy of Mark LaNeve's Letter to GM Dealers obtained
by Dow Jones Newswires is available for free at:

     http://bankrupt.com/misc/MarkLaNeveLettertoDealers.doc

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, including the United Kingdom, Germany,
France, Russia, Brazil and India.  In 2007, nearly 9.37 million
GM cars and trucks were sold globally under the following
brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden,
HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling.  GM's
OnStar subsidiary is the industry leader in vehicle safety,
security and information services.

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

                          *     *     *

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.


HEXION: Balks at Huntsman's Merger Termination Extension
--------------------------------------------------------
Hexion Specialty Chemicals, Inc., issued a statement in response
to Huntsman Corporation's decision to extend the merger
agreement termination date and to the counterclaims filed
against Hexion in the Delaware Court of Chancery.

As disclosed in the Troubled Company Reporter on July 3, 2008,
Huntsman's board of directors, unanimously, provisionally
authorized Huntsman Corp. to exercise its right to extend the
merger agreement with Hexion Specialty by an additional ninety
days to Oct. 2, 2008, as permitted by the terms of the merger
agreement.

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.

Under the merger agreement, Huntsman is permitted to extend the
termination date until Oct. 2, 2008, only if its Board of
Directors determines in good faith that there is an objectively
reasonable probability that the transaction can be completed in
that time frame.

"We do not understand how Huntsman's Board of Directors could in
good faith make that determination," Craig O. Morrison, Hexion's
Chairman, President and CEO said.  "There is no factual basis to
conclude that the combined company would be solvent.  As a
result, the merger is not viable.  We also believe that Huntsman
has suffered a material adverse effect in its business.  
Nevertheless, we continue to meet our contractual obligations as
demonstrated by the European Commission's decision on Monday to
approve the Hexion-Huntsman merger."

"Huntsman's counterclaims are without merit," Mr. Morrison
further noted.  "Although we have asked repeatedly for
Huntsman's permission to unseal our Delaware complaint, and have
supplied Huntsman with background supporting the Duff & Phelps
opinion, they have so far refused to allow their shareholders to
see the factual basis for our claims.  We remain confident that
we will prevail."

"Hexion is very well positioned to service its customers and to
compete and grow globally," Mr. Morrison continued.  "We have a
long-dated, stable capital structure and have more than
$475 million of liquidity."

                          Background

As reported by the Troubled Company Repoter on July 13, 2007,
Huntsman greed to a definitive merger agreement with Hexion
Specialty, 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, 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 the merger 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, primarily 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
  
Headquartered in Salt Lake City, Utah, Huntsman Corporation
(NYSE:HUN) -- http://www.huntsman.com/-- is a manufacturer of     
differentiated chemical products and inorganic chemical
products.  The company operates in four segments: Polyurethanes,
Materials and Effects, Performance Products and Pigments.  Its
products are used in a range of applications, including those in
the adhesives, aerospace, automotive, construction products,
durable and non-durable consumer products, electronics, medical,
packaging, paints and coatings, power generation, refining,
synthetic fiber, textile chemicals and dye industries.

                     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.


PERDIGAO SA: S&P Assigns BB+ Long-Term Corporate Credit Rating
--------------------------------------------------------------
Standard & Poor's Ratings Services has assigned its 'BB+'
long-term corporate credit rating to Brazil-based food producer
Perdigao S.A.  The outlook is stable.
      
"The rating on Perdigao reflects the company's operations in
commodity-oriented businesses, resulting in some exposure to
trade and sanitary embargoes and challenges to pass the
volatility in raw material costs to customers.  This could
negatively affect the company's relatively stable historical
EBITDA margins.  The rating also reflects company's robust
growth plans, which will result in negative free operating cash
flow for the next couple of years," said S&P's credit analyst
Reginaldo Takara.
     
Perdigao's challenge to consolidate recently acquired dairy
producer Eleva (nonrated) and to establish itself as an
important branded consumer product company in both local and
international markets is also incorporated into the ratings.
Negative rating factors are tempered by a robust local market
dynamic, and positively affected by higher income levels and
stronger macroeconomics.  These result in volume and revenue
increases for companies such as Perdigao.  The company's fairly
diversified business profile, which was strengthened by its
strong entrance into the less volatile dairy business, and
consistent and solid credit metrics as measured by stable cash
flow generation and somewhat resilient EBITDA margins are also
positive rating factors.
     
With revenues of US$3.4 billion in 2007, Perdigao is one of
Brazil's largest food companies.  The company produces poultry,
pork, beef processed foods, and dairy processed products.  It is
a vertically integrated business, and produces more than 3,000
stock-keeping units and 1.2 million tons of food per year.  More
than 60% of Perdigao's total revenues is derived from the
domestic market.  Volatility and low income levels in the
domestic market led to limited pricing capacity in past years.
However, currently robust market dynamics provide the company
with an important volume and revenue cushion that could bring
greater resilience to EBITDA margins.  Exports account for about
40% of total revenues, and while external sales are
characterized by more commodity-like products and therefore are
more vulnerable to price volatility and trade and sanitary
barriers, they have been an important buffer to oscillations in
domestic demand.
     
The stable outlook incorporates S&P's expectation that
Perdigao's business profile will improve consistently with more
value-added products.  This should reduce margin volatility
resulting from exposure to its commoditized product portfolio,
intense currency risks, and commodity price pressure.  A
positive change of the outlook or ratings would depend not only
on higher margins from its meat segment, its dairy products,
margarines, and processed-food lines, but also on S&P's comfort
that the diversification sought by Perdigao will result in
consistently more resilient margins.  

S&P does not believe Perdigao would be able to show much
stronger credit metrics, lower leveraged (total-debt-to-EBITDA
margin less than 1.5) and stronger coverage ratios (EBITDA
interest coverage ratio more than 5.0) in the short term.  On
the other hand, S&P would lower its rating on Perdigao if its
operating performance is less resilient to international or
local market downturns.  This would be reflected in lower margin
levels and intense cash-flow volatility, FFO-to-total debt ratio
consistently less than 20%.  An aggressive growth strategy,
especially one financed with debt, would also trigger a negative
rating action.

Headquartered in Sao Paulo, Brazil, Perdigao S.A. is one of the
largest food processors in Brazil, with a focus on poultry,
pork, beef, milk and processed products including dairy.  With
revenues of BRL6 billion for the last twelve months eding in
June 30, 2007, Perdigao is one of the leaders in the domestic
market and exports 42% of its sales to over 100 countries and
850 customers around the world.


TAM SA: Reports 75.3% International Market Share in June 2008
-------------------------------------------------------------
TAM S.A. has releases its operating data for June 2008, as
disclosed by the Brazilian National Civil Aviation Agency.

According to ANAC, TAM registered 9.3% growth in domestic RPK
(demand) compared to the same period last year, and 18.3%
increase in domestic ASK (supply).  In June, market demand
increased 10.3% and market supply increased 16.9%.  TAM
registered domestic market share (RPK) of 48.6%, a 0.5
p.p. decrease compared to the same period in 2007.  TAM's
domestic load factor was 67.1%, 0.2 p.p. higher than the
market average of 66.9%.

In the international market, TAM registered 32.9% growth in
RPK and 26.8% in ASK, compared to June 2007.  The company
attained market share of 75.3%, representing 5.7 p.p. growth
year on year.  TAM attained 72.6% load factor, 4.1 p.p.
higher than the market average of 68.5%.


Operating data              June 2008     June 2007   Var. %
------------------------------------------------------------
Domestic Market
   ASK (millions) - Supply     2,914        2,463       18.3%
   RPK (millions) - Demand     1,956        1,790        9.3%
   Load Factor                 67.1%        72.7%   -5.6 p.p.
   Market share                48.6%        49.0%   -0.5 p.p.
International Market
   ASK (millions) - Supply     1,653        1,304       26.8%
   RPK (millions) - Demand     1,200          903       32.9%
   Load Factor                 72.6%        69.2%    3.4 p.p.
   Market share                75.3%        69.6%    5.7 p.p.


Operating data               2Q 2008     2Q 2007      Var. %
------------------------------------------------------------
Domestic Market
   ASK (millions) - Supply     8,583       7,554        13.6%
   RPK (millions) - Demand     5,915       5,493         7.7%
   Load Factor                 68.9%       72.7%    -3.8 p.p.
   Market share                48.2%       49.7%    -1.5 p.p.
International Market
   ASK (millions) - Supply     4,954       4,017        23.3%
   RPK (millions) - Demand     3,648       2,796        30.5%
   Load Factor                 73.6%       69.6%     4.0 p.p.
   Market share                74.0%       72.8%     1.1 p.p.

Operating data             Jan.-June08  Jan.-June07   Var. %
------------------------------------------------------------
Domestic Market
   ASK (millions) - Supply    17,063       15,008       13.7%
   RPK (millions) - Demand    11,943       10,762       11.0%
   Load Factor                 70.0%        71.7%   -1.7 p.p.
   Market share                49.1%        49.0%    0.1 p.p.
International Market
   ASK (millions) - Supply    10,039        7,354       36.5%
   RPK (millions) - Demand     7,554        5,185       45.7%
   Load Factor                 75.2%        70.5%    4.7 p.p.
   Market share                70.6%        67.9%    2.7 p.p.

TAM S.A. currently -- http://www.tam.com.br/-- has business
agreements with the regional airlines Pantanal, Passaredo,
Total and Trip.  As of Jan. 14, the daily flight on the Corumba
-- Campo Grande route in Mato Grosso do Sul began to be operated
by a partnership with Trip.  With the expansion of the agreement
with NHT, TAM will now be serving 82 destinations in Brazil,
45 of which with its own flights.  In addition, the company is
strengthening its presence in Rio Grande do Sul and Santa
Catarina.

The company's international operations include direct flights
to 17 destinations: New York and Miami (USA), Paris (France),
London (England), Milan (Italy), Frankfurt (Germany), Madrid
(Spain), Buenos Aires and Cordoba (Argentina), Santiago (Chile),
Caracas (Venezuela), Montevideo and Punta del Este (Uruguay),
AsunciOn and Ciudad del Este (Paraguay), and Santa Cruz de
la Sierra and Cochabamba (Bolivia)

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Aug. 27, 2007, Standard & Poor's Ratings Services affirmed its
'BB' long-term corporate credit rating on Brazil-based airline
TAM S.A.  S&P said the outlook is stable.

On July 23, 2007, Fitch Ratings affirmed the 'BB' foreign
currency and local currency Issuer Default Ratings of TAM S.A.  
Fitch has also affirmed the 'BB' rating of its US$300 million of
senior unsecured notes due 2017 as well as the company's
'A+(bra)' national scale rating and for its first debentures
issuance (BRL500 million).  Fitch's rating outlook is stable.


TELE NORTE: Parent Sells BRL1.61BB of Bonds to Local Investors
--------------------------------------------------------------
Valor Economico reports that Tele Norte Leste Participacoes
S.A.'s owner Telemar Participacoes S.A. has sold BRL1.61 billion
of bonds to investors in Brazil.

According to Valor Economico, the bonds mature in 2013 and 2015.

Headquartered in Rio de Janeiro, Brazil, Tele Norte Leste
Participacoes S.A. -- http://www.telemar.com.br-- is a provider
of fixed-line telecommunications services in South America.  The
company markets its services under its Telemar brand name.  Tele
Norte's subsidiaries include Telemar Norte Leste SA; TNL PCS SA;
Telemar Internet Ltda.; and Companhia AIX Participacoes SA.

                        *     *     *

As reported on April 27, 2007, Standard & Poor's Ratings
Services placed on CreditWatch with negative implications the
'BB+' corporate credit rating on Tele Norte Leste Participacoes
S.A.  The creditwatch resulted from TmarPart's decision to buy
out its holding company's preferred shares.


USINAS SIDERURGICAS: Discloses US$14.1 Bil. Expansion Plan
----------------------------------------------------------
Claudio Mendonca at Business News Americas reports that Usinas
Siderurgicas de Minas Gerais S.A., a.k.a. Usiminas, has
disclosed a US$14.1 billion expansion plan for four years.  

BNamericas relates that Usiminas' growth plans include the
increase of production capacity through 2012 in steel and iron
ore production in the Serra Azul region in Minas Gerais to
29 million tons per year.  Usiminas currently produces
five million tons per year of steel and iron ore in Serra Azul.

According to BNamericas, Usiminas said it will need about
21 million tons per year in iron ore to fulfill its goal of
14 million ton per year steel output in 2013.

BNamericas relates that Usiminas bought mines from J Mendes in
Serra Azul last March.  It is investing some US$3.5 billion in
mining projects.  The company is also planning to build a pellet
plant.

According to the report, Usiminas' Chief Financial Officer Paulo
Penido said the firm is securing US$7 billion from entities like
BNDES, IDB, and an array of commercial banks to help finance its
US$14.1 billion expansion plan.  The company's previous capital
expenditure plan for 2008-12 was budgeted at US$9 billion,
without the Santana do Paraiso slab mill.

BNamericas notes that Usiminas' plan includes:

   -- a US$1.2 billion investment for the production of 500,000
      tons per year of heavy plates and 150,000 tons per year of
      hot-rolled products;

   -- a 550,000 ton per year galvanized products line and
      750,000 ton per year coal facility in Ipatinga that will
      be operational in the first quarter 2011 and first quarter
      2010, respectively;

   -- a US$400 million, 60-megawatt thermo electric plant to
      guarantee the self-sufficiency of the firm's Ipatinga
      operations.  The plant will be ready in the fourth quarter
      this year;

   -- US$2.4 billion investment for Usiminas' Cosipa subsidiary
      in Cubatao, Sao Paulo, where the firm purchased a new hot  
      strip mill due to expand  production to 2.3 million tons
      per year in the first quarter 2011;

   -- 350,000 ton per year casting facility, which is  already
      operational;

   -- 75-megawatt power plant.

Usiminas will have 75% self-sufficiency among all of its
Brazilian facilities once the two power plants are complete,
BNamericas says, citing Mr. Penido.  

Mr. Penido said that a three million ton per year flat steel
facility is going to be delayed for some time, BNamericas
relates.  "We still have plans but it all depends on how market
conditions are in the future," Mr. Penido added.

Headquartered in Minas Gerais, Brazil, Usinas Siderurgicas de
Minas Gerais S.A. -- http://www.usiminas.com.br-- is among the          
world's 20 largest steel manufacturing complexes, with a
production capacity of approximately 10 million tons of steel.  
Usiminas System companies produces galvanized and non-coated
flat steel products for the automotive, small and large diameter
pipe, civil construction, hydro-electronic, rerolling,
agriculture, and road machinery industries.  Brazil consumes 80%
of its products and the company's largest export markets are the
US and Latin America.  The company also sells in China and
Japan.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 5, 2008, Moody's Investors Service assigned a Ba1 local
currency rating and an Aa1.br rating on its Brazilian national
scale to the BRL500 million non-guaranteed subordinated
debentures due 2013 to be issued by Usinas Siderurgicas de Minas
Gerais S.A. (aka Usiminas).  Net proceeds from the debentures
issuance will be used to partially fund the company's capex
program.  Moody's said the rating outlook is stable.


USINAS SIDERURGICAS: To Construct US$5.7BB Slab Mill in Santana
---------------------------------------------------------------
Claudio Mendonca at Business News Americas reports that Usinas
Siderurgicas de Minas Gerais S.A., a.k.a. Usiminas, will build a
US$5.7 billion slab mill in Santana do Paraiso, Minas Gerais, in
the first quarter 2009.

BNamericas relates that the mill will have a capacity of
five million tons per year.  It will be seven kilometers from
Usiminas' headquarters in Ipatinga.  It will provide 4,000 new
permanent positions and 16,000 jobs during the construction
phase.  

According to BNamericas, Usiminas plans to start up the mill at
a rate of 2.5 million tons per year in 2011 and ramp it up to
five million tons per year in 2012.  Usiminas has a nine million
ton per year production.  The mill will have a 250-megawatt
thermoelectric power plant, Usiminas said.

BNamericas notes that Usiminas' Chief Financial Officer Paulo
Penido said during a conference call last Tuesday that about 40%
of the new plant's production will be sold on the domestic
market.  About 60% of the plant's output will be sold outside
Brazil, Mr. Penido added.

Headquartered in Minas Gerais, Brazil, Usinas Siderurgicas de
Minas Gerais S.A. -- http://www.usiminas.com.br-- is among the          
world's 20 largest steel manufacturing complexes, with a
production capacity of approximately 10 million tons of steel.  
Usiminas System companies produces galvanized and non-coated
flat steel products for the automotive, small and large diameter
pipe, civil construction, hydro-electronic, rerolling,
agriculture, and road machinery industries.  Brazil consumes 80%
of its products and the company's largest export markets are the
US and Latin America.  The company also sells in China and
Japan.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 5, 2008, Moody's Investors Service assigned a Ba1 local
currency rating and an Aa1.br rating on its Brazilian national
scale to the BRL500 million non-guaranteed subordinated
debentures due 2013 to be issued by Usinas Siderurgicas de Minas
Gerais S.A. (aka Usiminas).  Net proceeds from the debentures
issuance will be used to partially fund the company's capex
program.  Moody's said the rating outlook is stable.


USINAS SIDERURGICAS: Mulls Acquisitions in U.S., Europe & LatAm
---------------------------------------------------------------
Marco Antonio Castello Braco, chief executive officer of Usinas
Siderurgicas de Minas Gerais S.A., a.k.a. Usiminas, said that
the firm is considering acquisitions in the U.S., Europe, and
Latin America, Alberto Alerigi at Reuters reports.

Usiminas is accelerating plans to expand abroad, Reuters says,
citing Mr. Braco.  "We are looking at these regions but prices
of assets abroad are very inflated ... We aren't going to buy an
asset at any price though," Mr. Branco said.  The firm could
construct mills in the three regions, the official added.

Reuters notes that Mr. Branco said, "We have the conditions to
accelerate our verticalization program but we want to maintain
our investment grade.  We don't want to take a bigger stride
than our legs permit."

Headquartered in Minas Gerais, Brazil, Usinas Siderurgicas de
Minas Gerais S.A. -- http://www.usiminas.com.br-- is among the          
world's 20 largest steel manufacturing complexes, with a
production capacity of approximately 10 million tons of steel.  
Usiminas System companies produces galvanized and non-coated
flat steel products for the automotive, small and large diameter
pipe, civil construction, hydro-electronic, rerolling,
agriculture, and road machinery industries.  Brazil consumes 80%
of its products and the company's largest export markets are the
US and Latin America.  The company also sells in China and
Japan.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 5, 2008, Moody's Investors Service assigned a Ba1 local
currency rating and an Aa1.br rating on its Brazilian national
scale to the BRL500 million non-guaranteed subordinated
debentures due 2013 to be issued by Usinas Siderurgicas de Minas
Gerais S.A. (aka Usiminas).  Net proceeds from the debentures
issuance will be used to partially fund the company's capex
program.  Moody's said the rating outlook is stable.



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

ACACIA CDO 4: Proofs of Claim Filing Deadline Is July 13
--------------------------------------------------------
Acacia CDO 4 Ltd.'s creditors have until July 13, 2008, to prove
their claims to Walkers SPV 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.

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

The liquidator can be reached at:

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

Contact for inquiries:

                 Anthony Johnson
                 Telephone: (345) 914-6314


BLUE DRAGON: Deadline for Proofs of Claim Filing Is July 12
-----------------------------------------------------------
Blue Dragon Aircraft Ltd.'s creditors have until July 12, 2008,
to prove their claims to Walkers SPV 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.

Blue Dragon's shareholder decided on June 12, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidator can be reached at:

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

Contact for inquiries:

                 Anthony Johnson
                 Telephone: (345) 914-6314


BOMBAY CO: Judge Lynn Approves Amended Disclosure Statement
-----------------------------------------------------------
The Hon. D. Michael Lynn of the United States Bankruptcy Court
for the Northern District of Texas approved an amended
disclosure statement explaining an amended Chapter 11 plan of
liquidation filed by The Bombay Company Inc. and its debtor-
affiliates together with the Official Committee of Unsecured
Creditors, as co-proponent, on July 2, 2008.

Judge Lynn held that the proponents' amended disclosure
statement contains adequate information within the meaning of
Section 1125 of the U.S. Bankruptcy Code.

Judge Lyn will convene a hearing on Aug. 20, 2008, at 1:30 p.m.,
to consider confirmation of the proponents' amended plan.  The
hearing will take place at Eldon B. Mahon U.S. Courthouse at 501
W. Tenth Street in Fort Worth, Texas.  Objections, if any, are
due Aug. 11, 2008, at 4:00 p.m. Central Time.

Deadline for voting on the amended plan is Aug. 11, 2008.

                      Postpetition Financing

On Oct. 11, 2007, the Court authorized the Debtors to obtain, on
a final basis, up to US$115 million in postpetition financing
from GE Corporate Lending and GE Canada Finance Holdings
Company.  The loan incurs interest rate of the higher of bank
prim loan rate and the Federal Fund Rate plus 0.50% per annum,
according the Debtors' regulatory filing with the Securities and
Exchange Commission.

The loan will be used to fund operations, including employees
salaries and benefits as well as postpetition vendor payments
during Chapter 11 reorganization process.

                           Asset Sales

During an October 2007 auction, the Debtors accepted a bid by a
joint venture comprised of Gordon Brothers Retail Partners LLC
and Hilco Merchants Resources LLC of 109.5% of the actual cost
value of the Debtors' United States inventory.  Furthermore, the
Debtors also shared with GB Hilco Merchants in proceeds of the
inventor liquidation after GB Hilco recovered its investment
plus an agreed return.

On Nov. 8, 2007, the Court authorized the Debtors to sell their
corporate headquarters located at 550 Bailey Avenue in Fort
Worth, Texas, to Goff Capital Inc. for US$16.35 million.  The
Debtors realized at least US$1.8 million in the disposition of
lease designation rights.  As reported in the Troubled Company
Reporter, Goff Capital will be assuming the unexpired leases of
office spaces at the complex.  The Debtor also provided adequate
assurance of future performance pursuant to Section 365(f)(2) of
the U.S. Bankruptcy Code, and no cure amounts are required to be
paid to the office tenants pursuant to Section 365(b)(1).

On Oct. 11, 2007, the Debtors began negotiations with a Canadian
bidder -- Benix & Co. and affiliates of Hilco Consumer Capital
-- for the sale of their Canadian operations.  The bidder
offered to pay 110% of the cost value of the Canadian inventory
and proposed to assume all of the obligations of the Debtors'
Canadian assets.  The sale of the Debtors' Canadian assets was
approved by the Canadian Bankruptcy Court on Oct. 23, 2007.

The Court approved on Jan. 23, 2008, the sale of the Debtors'
intellectual property to Bombay Brands LLC for US$2 million.  
The Debtors retained a 25% ownership in Bombay Brands.

                      Overview of the Plan

Under the Plan, Elaine D. Crowley, the appointed liquidation
trustee, will issue a share of common stock for The Bombay
Company Inc. and become the sole shareholders, officer and
director of The Bombay Company Inc. replacing its existing
shareholders and company officers.  All other shares of any
class of stock of each of the Debtors will be canceled on the
Plan's effective date.

A liquidation trust will be created for the benefit of all
creditors of the estates holding allowed claims.

According to the Plan, the Debtors are expected to transfer any
of their assets including (i) cash and accounts, (ii) litigation
causes of action, (iii) ownership interest in Bombay Brands LLC,
(iv) all other property interests, rights, claims, defenses and
causes of action with respect to any and all non-debtor
intercompany claims or the Debtors.

The amended plan classifies interests against and liens in the
Debtors in seven classes.  The classification of interests and
claims are:

                 Treatment of Claims and Interests

     Class            Type of Claims             Treatment
     -----            --------------             ---------
     unclassified     administrative claims   
  
     unclassified     priority tax claims

     1                priority-non-tax claims    unimpaired

     2                secured claims             unimpaired

     3                general unsecured claims   impaired

     4                unsecured Bombay Gift      impaired
                       Card Convenience Class

     5                subordinated claims        impaired

     6                intercompany claims        impaired

     7                interests                  impaired

Classes 1, 2, 5, 6 and 7 are not entitled to vote on the
proponents Chapter 11 Plan.

Each holder in Class 1 will be paid 100% of the unpaid amount of
allowed claim in cash after the distribution date.  Holders may
receive other less favorable treatment as may be agreed upon by
the claimant and the liquidation trustee.

At the liquidation trustee's option, holders of Class 2 Secured
Claims are entitled to get, either:

   a) 100% of the net proceeds from the sale of relevant
      collateral, up to the unpaid allowed amount of the claims;

   b) the return of the relevant collateral; or

   c) an alternative treatment as leaves unaltered the legal,
      equitable and contractual rights of the holder of the
      allowed claim.

On the effective date, holders of Class 3 General Unsecured
Creditors are expected to receive between 16.4% and 28.9% of the
allowed amount of their claims, plus their pro rata shares of
any value realized from the litigation causes of action.  The
earlier plan version provides a recovery to Class 3 holders
between 18.5% and 31.5% of the allowed amount of their claims.

Each holder of Class 4 Bombay Gift Card Convenience Claim will
get cash equal to 25% of the allowed amount of its claim in full
on the plan's effective date.  Class 4 holders will not be
entitled to any future distribution from the liquidation truste.

Holders of classes 5, 6 and 7 will not receive any distribution
from the Debtors.

A full-text copy of the Amended Disclosure Statement is
available for free at:

              http://ResearchArchives.com/t/s?2f37

A full-text copy of the Amended Joint Chapter 11 Plan of
Reorganization is available for free at

              http://ResearchArchives.com/t/s?2f38

                      About Bombay Company

Based in Fort Worth, Texas, The Bombay Company Inc., (OTC
Bulletin Board: BBAO) -- http://www.bombaycompany.com/--  
designs, sources and markets a unique line of home accessories,
wall decor and furniture through 384 retail outlets and the
Internet in the U.S. and internationally, including Cayman
Islands.

The company and five of its debtor-affiliates filed for Chapter
11 protection on Sept. 20, 2007 (Bankr. N.D. Tex. Lead Case No.
07-44084).  Robert D. Albergotti, Esq., John D. Penn, Esq., Ian
T. Peck, Esq., and Jason B. Binford, Esq., at Haynes and Boone,
LLP, represent the Debtors.

The Bombay Furniture Company of Canada Inc. - La Compagnie de
Mobilier Bombay Du Canada Inc., sough protection from its
creditors from the Ontario Superior Court of Justice on
Sept. 20, 2007.

The U.S. Trustee for Region 6 appointed seven creditors to serve
on an Official Committee of Unsecured Creditors.  Attorneys at
Cooley, Godward, Kronish LLP act as counsel to the Unsecured
Creditors Committee.  As of May 5, 2007, the Debtors listed
total assets of US$239,400,000 and total debts of
US$173,400,000.

                           *    *    *

The Debtors' consolidated monthly operating report for April 30,
2008, posted total assets of US$34,100,177 and total liabilities
of US$31,780,942.


CABLE & WIRELESS: Tim Adam to Leave CEO Post
--------------------------------------------
Cayman Net News reports that Tim Adam will resign as Cable &
Wireless Plc's chief executive officer for its Cayman operations
to take on a part-time role in the firm.

According to Cable & Wireless, Mr. Adam will remain as CEO until
the end of September to allow for a smooth transition.  Cayman
Net relates that Mr. Adam has been Cable & Wireless' CEO  for 10
years.  He has spent a total of 35 years in the firm.  He will
be an advisor to the firm for an indefinite period.

Cayman Net notes that Cable & Wireless said it wants a Caymanian
to be its next CEO.  The firm's Caribbean CEO Richard Dodd said,
"While we are sad to see Tim leave his role as Chief Executive
we want to wish him all the best going forward and thank him for
his exemplary service to Cable & Wireless and our customers.  
Tim has exemplified our mantra of putting the customer first and
he is to be commended for his dedication and loyalty to our
company."

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

                        *     *     *

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


CHAUMET AFFILIATES: Proofs of Claim Filing Deadline Is July 14
--------------------------------------------------------------
Chaumet Affiliates Ltd.'s creditors have until July 14, 2008, to
prove their claims to Westport Services Ltd., 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.

Chaumet Affiliates' shareholders decided on June 9, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

                 Westport Services Ltd.
                 P.O. Box 1111
                 Grand Cayman, Cayman Islands

Contact for inquiries:

                 Patricia Tricarico
                 Telephone: (345) 949-5122
                 Fax: (345) 949-7920


CORSAIR (CAYMAN): Proofs of Claim Filing Is Until July 13
---------------------------------------------------------
Corsair (Cayman Islands) No. 2 Ltd.'s creditors have until
July 13, 2008, to prove their claims to Walkers SPV 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.

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

The liquidator can be reached at:

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

Contact for inquiries:

                 Anthony Johnson
                 Telephone: (345) 914-6314


CORSAIR (CAYMAN) 4: Fitch Cuts Credit-Linked Notes Rating to BB
---------------------------------------------------------------
Fitch Ratings has downgraded the notes issued by Corsair (Cayman
Islands) No. 4 Ltd. Series 6, and removed them from Rating Watch
Negative, as follows:

  -- AU$105,000,000 credit-linked notes due March 2014:
     downgraded to 'B+' from 'AA-', removed from RWN.

The transaction is a managed synthetic CDO referencing a
portfolio of primarily investment grade corporate obligations
and managed by Lehman Brothers Australia (formerly Grange
Securities Ltd).  The portfolio maximum notional amount is
AU$13.13 billion.

The transaction was placed on RWN on May 20, 2008, and the RWN
placement reflected Fitch's view on the credit risk of the rated
notes following the release of its new corporate CDO rating
criteria. Since then the portfolio has experienced further
negative rating migration mainly due to the downgrading of four
reference entities in the Buildings and Materials sector and
three reference entities in the Banking and Finance sector as a
reflection of the challenges afflicting the US homebuilders and
mortgage insurers.  The four downgraded reference entities in
the Buildings and Materials sector are:

   -- Beazer Homes USA, Inc. (B/RWN),

   -- Centex Corp. (BB+/Negative Outlook),

   -- Lennar Corporation (BBB-/Negative Outlook), and

   -- Pulte Homes, Inc. (BBB- /Negative Outlook).  

Furthermore, three other reference entities with Negative
Outlooks namely:

   -- Hovnanian Enterprises, Inc. (B-/Negative Outlook),

   -- Masco Corporation (BBB/Negative Outlook), and

   -- Toll Brothers Inc. (BBB/Negative Outlook),

are also in the same sector.  The three downgraded reference
entities in the Banking and Finance sector are:

   -- PMI Group, Inc.,

   -- MGIC Investment Corp., and

   -- Lehman Brothers Holdings Inc.

The former two entities are currently on RWN while Lehman
Brothers is still on Negative Outlook.

Other key drivers of this transaction's credit risk include:

   -- Portfolio credit risk deteriorating to an average
      portfolio quality of 'BBB' from 'BBB+'/'BBB' at last
      review in November 2007.  Since the last review, the
      percentage of the portfolio rated below investment grade
      has increased to 12.1% from 7.9%, with 6.2% of the
      portfolio in the 'BB' category, 3.5% in the 'B' category
      and 2.4% in the 'CCC+ or below' category, including a
      defaulted asset, Residential Capital LLC (rated 'D'),
      which represents 0.6% of the portfolio.

   -- Portfolio migration risk with 5.9% of the portfolio on RWN
      and 17.1% of the portfolio with a Negative Outlook.
  
   -- Industry concentration of 55.6% in the three largest
      industries, made up of 43.5% in Banking & Finance, 6.8% in
      Telecommunications and 5.3% in Utilities.

   -- The portfolio is heavily concentrated in the US which
      represents 51% of the portfolio.

Given Fitch's view of concentration risk and the current credit
quality of the portfolio, the credit enhancement level of 4.03%
is not sufficient to justify the current rating of the notes.
The credit enhancement level is likely to be eroded should there
be a credit event called on Residential Capital LLC.

At close, proceeds from the issuance of the notes were used to
purchase the charged asset to collateralise CDS between the
issuer and J.P. Morgan Securities (C.I.) Ltd (guaranteed by
JPMorgan Chase Bank, N.A., 'AA-' (AA minus)/'F1+').  The charged
assets in this transaction comprise AU$105 million in aggregate
of senior secured notes issued by Dexia Municipal Agency due
March 2013 (rated 'AAA') and Depfa ACS Bank due March 2014
(rated 'AAA').

Fitch released updated criteria on April 30, 2008 for corporate
CDOs and, at that time, noted it would be reviewing its ratings
accordingly to establish consistency for existing and new
transactions.  As part of this review, Fitch makes standard
adjustments for any names on RWN or Negative Outlook, reducing
such ratings for default analysis purposes by two and one notch,
respectively.  Fitch has noted its review will be focused first
on ratings most exposed to risks it has highlighted in its
updated criteria.  Consequently, this transaction was placed on
RWN on May 20, 2008.  As previously indicated, resolution of the
Rating Watch status depends on any plans managers/arrangers may
choose to modify either the structure or the portfolio.  In this
case, the manager has confirmed that it does not intend to make
any modifications.

Each of Corsair International and Corsair Investors is an
exempted company formed under the laws of the Cayman Islands,
British West Indies.   


NECAS LIMITED: Deadline for Proofs of Claim Filing Is July 14
-------------------------------------------------------------
Necas Limited's creditors have until July 14, 2008, to prove
their claims to Condor Nominee 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.

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

The liquidator can be reached at:

               Condor Nominee Limited
               c/o Barclays Private Bank & Trust (Cayman) Ltd.
               4th Floor FirstCaribbean House
               25 Main Street, George Town
               Grand Cayman, Cayman Islands


TEMPLE CAPITAL: Proofs of Claim Filing Is Until July 14
-------------------------------------------------------
Temple Capital Partners Ltd.'s creditors have until
July 14, 2008, to prove their claims to Gordon I. MacRae and G.
James Cleaver, the company's liquidators, or be excluded from
receiving any distribution or payment.

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

Temple Capital's shareholders decided on June 12, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

                 Gordon I. MacRae and G. James Cleaver
                 Attn: Korie Drummond
                 c/o Kroll (Cayman) Limited
                 4th Floor, Bermuda House
                 Dr. Roy's Drive, Grand Cayman
                 Cayman Islands
                 Telephone: +1 (345) 946-0081
                 Fax: +1 (345) 946-0082


WIN GOTANDA: Proofs of Claim Filing Deadline Is July 13
-------------------------------------------------------
Win Gotanda Holdings' creditors have until July 13, 2008, to
prove their claims to Walkers SPV 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.

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

The liquidator can be reached at:

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

Contact for inquiries:

                 Anthony Johnson
                 Telephone: (345) 914-6314



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

CHEMTURA CORP: S&P Keeps Watch on BB Ratings on Aborted Sale
------------------------------------------------------------
Standard & Poor's Ratings Services has revised its CreditWatch
implications on Chemtura Corp. ('BB' corporate credit
and senior unsecured debt ratings) to negative from developing.  
The action follows the company's recent announcement that
shareholders' interests will be best served by terminating
discussions on a potential sale, merger, or other business
combination involving the entire company and by continuing to
operate Chemtura as a stand-alone entity.

"The CreditWatch with negative implications reflects our
concerns that cash flow protection measures will not strengthen
to, and be sustained at, levels appropriate for the current
ratings, given the challenging domestic economy, including
elevated energy costs," said Standard & Poor's credit analyst
Wesley E. Chinn.

The ratings on Chemtura incorporate the vulnerability of its
operating results to competitive pricing pressures, raw-material
costs, and cyclical markets.  They also reflect weak cash flow
protection measures as a result of poor profitability in certain
businesses.  These factors are tempered by a diversified
portfolio of specialty and industrial chemical businesses
(generating annual revenues of roughly US$3.7 billion), thus
presenting management with a range of options regarding
potential asset sales or other actions to improve the financial
profile.

Although the board has terminated discussions on a potential
sale or merger of the entire company, management is still
considering other strategic options, including business
divestitures, acquisitions, joint ventures, and stock
repurchases.  This calls into question financial policies. We
await 2008 second-quarter results (historically Chemtura's
strongest quarter) to ascertain whether meaningful earnings
progress can be achieved during this year and thus contribute to
a strengthening of the financial profile, including the key
funds from operations to debt ratio. S&P expects to resolve
the CreditWatch listing within the next two months, following a
meeting with management to review earnings and debt leverage
prospects.

                   About Chemtura Corporation

Headquartered in Middlebury, Connecticut, Chemtura Corp.
(NYSE: CEM) -- http://www.chemtura.com/-- manufactures and   
markets specialty chemicals, crop protection products, and pool,
spa and home care products.  The company has subsidiaries in the
United Kingdom, Netherlands, Australia, China, Japan, Chile and
Mexico.



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

BANCOLOMBIA SA: Research Oracle Keeps Buy Rating for Stock
----------------------------------------------------------
Research Oracle News has maintained its "buy" recommendation for
Bancolombia SA's preferred stock.

Bancolombia's preferred stock price has declined significantly
since Research Oracle's previous update report reflecting
investor concerns over the impact of weakness in the Colombian
economy on the company's earnings growth, coupled with the
Colombian Central Bank's decision to increase reserve
requirements.

Although Research Oracle is likely to revise its estimates and
target price downwards when it comes to revalue the stock in its
next full update report, given general weakness in the Colombian
economy, it believes that the recent decline in the preferred
stock price has left the Bancolombia stock undervalued.

Research Oracle continues to expect a significant positive
currency impact on the American Depository Receipt over its
investment horizon.  Research Oracle maintains its "buy" rating
for the American Depository Receipt.

Bancolombia S.A. is Colombia's largest full-service financial
institution, formed by a merger of three leading Colombian
financial institutions.  Bancolombia's market capitalization is
over US$5.5 billion, with US$13.8 billion asset base and US$1.4
billion in shareholders' equity as of Sept. 30, 2006.
Bancolombia is the only Colombian company with an ADR level III
program in the New York S0tock Exchange.

                         *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 23, 2008, Moody's Investors Service upgraded Bancolombia's
foreign currency subordinated bond rating to Baa3 from Ba1.  
Moody's said the outlook is stable.


SOLUTIA INC: Signs US$182 Million Deal With Chinese Companies
-------------------------------------------------------------
According to STLtoday.com, Solutia Inc. Chief Executive Officer
Jeffry Quinn signed US$182,000,000 in contracts with certain
Chinese companies on June 16, 2008.

Mr. Quinn was among local industry leaders who signed deals with
Chinese companies during a meeting at the Ritz-Carlton Hotel in
Clayton, STLtoday reported.

Solutia said that 58% of its revenue growth between 2006 and
2001 will come from China, according to STLtoday.  Solutia
exports nylon resins and polymers to China from its Pensacola,
Florida facility, STLtoday noted.

"We look at China not as a place to outsource production and
find cheap labor, but as a vibrant market that needs and desires
the quality products that Solutia produces around the world,"
STLtoday quoted Mr. Quinn.

Solutia manufactures tinted window films and, through a joint
venture, heat-transfer fluid in China, according to STLtoday.

Solutia also recently announced that it is seeking to expand its
Crystex(R) insoluble manufacturing capacity in the Asia-Pacific
region.  Crystex is a vulcanizing agent used in the tyre
industry.

                   St. Louis RCGA Press Release

Chinese Vice Premier Wang Qishan became the highest Chinese
government official yet to visit St. Louis in connection with
the proposal to create an air cargo hub and commercial center
here to facilitate trade between China and the United States.

The Vice Premier arrived on a flight direct from Beijing.  After
his meetings at St. Louis, he went on to Washington, D.C. for
discussions with Secretary of the Treasury Henry Paulson.

"We are extremely pleased to be hosting this visit by Vice
Premier Wang," said Richard C. D. Fleming, President and Chief
Executive Officer of the St. Louis Regional Chamber & Growth
Association (RCGA).  "His presence here speaks volumes about how
seriously the Chinese are exploring the notion of making St.
Louis their Midwestern port of entry to the United States."

While in St. Louis, Vice Premier Wang met with Sens. Christopher
S. "Kit" Bond and Claire McCaskill, as well as with Congressmen
Russ Carnahan, William "Lacey" Clay, Todd Akin, and JoAnn
Emerson, and with Mo. Lt. Gov. Peter Kinder, Missouri House
Speaker Rod Jetton, St. Louis Mayor Francis Slay, St. Louis
County Executive Charlie Dooley, and others, including Robert A.
Reynolds Jr., RCGA's chairman and chairman, president, and chief
executive officer of Graybar.  The meetings took place at the
Ritz-Carlton Hotel in Clayton, and were followed by a luncheon
where the Vice Premier made remarks that were open to the media.

In conjunction with Vice Premier Wang's visit, Chinese
government officials signed four agreements with local and state
businesses and organizations.  The agreements were with the
United Soybean Board, United States Soybean Export Council, and
the American Soybean Association; the Missouri Department of
Agriculture; Emerson (NYSE: EMR); and Solutia, Inc. (NYSE: SOA).

Solutia signed memorandums of understanding with three companies
for the purchase of Solutia's Vydyne(R) nylon resin, which is
used by Chinese manufacturers of automotive, electrical,
consumer, and industrial products.

The three companies, and the size of the respective contracts,
are Guangzhou Kingfa Science and Technology Co. Ltd.,
US$84,000,000; Hangzhou Yongchang Nylon Co. Ltd., US$56,000,000;
and Liaoning Yinzhu Chem-Tex Group Co., US$42,000,000.

                     About the St. Louis RCGA

The St. Louis Regional Chamber & Growth Association is the
chamber of commerce and economic development organization for
the 16-county, bi-state region.  With nearly 4,000 member
companies, RCGA members constitute 40% of the regional work
force.  The mission of the RCGA is to unite the region's
business community, and to engage dynamic business and civic
leadership to develop and sustain a world-class economy and
community.

                        About Solutia Inc.

Based in St. Louis, Missouri, Solutia Inc. (OTCBB: SOLUQ) (NYSE:
SOA-WI) -- http://www.solutia.com/-- and its subsidiaries,     
manufactures and sells chemical-based materials, which are used
in consumer and industrial applications worldwide.  Solutia
has operations in Malaysia, China, Singapore, Belgium, and
Colombia.

The company and 15 debtor-affiliates filed for chapter 11
protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Lead Case No. 03-
17949).  When the Debtors filed for protection from their
creditors, they listed US$2,854,000,000 in assets and
US$3,223,000,000 in debts.

Solutia is represented by Richard M. Cieri, Esq., Jonathan S.
Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis
LLP, in New York, as lead bankruptcy counsel, and David A.
Warfield, Esq., and Laura Toledo, Esq., at Blackwell Sanders
LLP, in St. Louis Missouri, as special counsel.  Trumbull Group
LLC is the Debtor's claims and noticing agent.  Daniel H.
Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq.,
at Akin Gump Strauss Hauer & Feld LLP represent the Official
Committee of Unsecured Creditors, and Derron S. Slonecker at
Houlihan Lokey Howard & Zukin Capital provides the Creditors'
Committee with financial advice.  The Official Committee of
Retirees of Solutia, Inc., et al., is represented by Daniel D.
Doyle, Esq., Nicholas A. Franke, Esq., and David M. Brown, Esq.,
at Spencer Fane Britt & Browne, LLP, in St. Louis, Missouri, and
Frank M. Young, Esq., Thomas E. Reynolds, Esq., R. Scott
Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, in
Birmingham, Alabama.

On Feb. 14, 2006, the Debtors filed their Reorganization Plan &
Disclosure Statement.  On May 15, 2007, they filed an Amended
Reorganization Plan and on July 9, 2007, filed a 2nd Amended
Reorganization Plan.  The Bankruptcy Court approved the Debtors'
amended Disclosure Statement on Oct. 19, 2007.  On Oct. 22,
2007, the Debtor re-filed a Consensual Plan & Disclosure
Statement and on Nov. 29, 2007, the Court confirmed the Debtors'
Consensual Plan.  Solutia emerged from chapter 11 protection
Feb. 28, 2008.  (Solutia Bankruptcy News, Issue No. 128;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)

                          *     *     *

Solutia Inc. continues to carry a corporate credit rating of B+
with stable outlook from Standard & Poor's Ratings Services.  
The rating was raised to its current level from D in March 2008
following the company's emergence from bankruptcy on Feb. 28,
2008, and the implementation of its financing plan.


SOLUTIA INC: Registers US$600 Million Stock and Debt Securities
---------------------------------------------------------------
Solutia Inc. filed with the U.S. Securities and Exchange
Commission a Form S-3 registration statement under the
Securities
Act of 1933 to register US$600,000,000 in debt securities,
guarantees of debt securities, common stock at par value US$0.01
per share, preferred stock at par value US$0.01 per share,
depository shares representing preferred stock, warrants, stock
purchase contracts, and stock purchase units.

Solutia may amend its Registration Statement, as necessary, to
delay its effective date until a further amendment is filed
specifically stating that the Registration Statement will become
effective in accordance with Section 8(a) of the Securities Act
of 1933, as amended, or until the statement will become
effective on a date SEC may determine.

Solutia's prospectus describes the general terms of the
securities and the general manner that the Company will offer
them.  Securities may be sold directly, through agents, dealers
or underwriters designated from time to time, or through a
combination of these methods.  Solutia reserves the right to
accept or reject, in whole or in part, any proposed purchase of
securities.

A full-text copy of the Prospectus is available at no charge at
http://ResearchArchives.com/t/s?2f3c

The net proceeds from the sale of Solutia's debt and equity
securities for the repayment of indebtedness, to finance
acquisitions or for general corporate and working capital
purposes, according to Jeffry N. Quinn, Solutia chief executive
officer and chairman of the board.  The net proceeds may be
invested temporarily or be applied to repay short-term or
revolving debt until used for the stated purpose, he adds.

The Prospectus supplement for any series of debt securities that
may be offered will state the price and terms of the securities.

Mr. Quinn notes that the material terms of Solutia's certificate
of incorporation and by-laws authorizes it to issue a total of
600,000,000 shares of capital stock, consisting of:

    -- 500,000,000 shares of Common Stock, par value US$0.01 per
       share; and

    -- 100,000,000 shares of Preferred Stock, par value US$0.01
       per share.

As of March 31, 2008, 60,763,046 shares of Common stock and zero
shares of Preferred Stock have been issued and outstanding.  The
transfer agent and registrar for Solutia's Common Stock is
American Stock Transfer & Trust Company.

                        About Solutia Inc.

Based in St. Louis, Missouri, Solutia Inc. (OTCBB: SOLUQ) (NYSE:
SOA-WI) -- http://www.solutia.com/-- and its subsidiaries,     
manufactures and sells chemical-based materials, which are used
in consumer and industrial applications worldwide.  Solutia
has operations in Malaysia, China, Singapore, Belgium, and
Colombia.

The company and 15 debtor-affiliates filed for chapter 11
protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Lead Case No. 03-
17949).  When the Debtors filed for protection from their
creditors, they listed US$2,854,000,000 in assets and
US$3,223,000,000 in debts.

Solutia is represented by Richard M. Cieri, Esq., Jonathan S.
Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis
LLP, in New York, as lead bankruptcy counsel, and David A.
Warfield, Esq., and Laura Toledo, Esq., at Blackwell Sanders
LLP, in St. Louis Missouri, as special counsel.  Trumbull Group
LLC is the Debtor's claims and noticing agent.  Daniel H.
Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq.,
at Akin Gump Strauss Hauer & Feld LLP represent the Official
Committee of Unsecured Creditors, and Derron S. Slonecker at
Houlihan Lokey Howard & Zukin Capital provides the Creditors'
Committee with financial advice.  The Official Committee of
Retirees of Solutia, Inc., et al., is represented by Daniel D.
Doyle, Esq., Nicholas A. Franke, Esq., and David M. Brown, Esq.,
at Spencer Fane Britt & Browne, LLP, in St. Louis, Missouri, and
Frank M. Young, Esq., Thomas E. Reynolds, Esq., R. Scott
Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, in
Birmingham, Alabama.

On Feb. 14, 2006, the Debtors filed their Reorganization Plan &
Disclosure Statement.  On May 15, 2007, they filed an Amended
Reorganization Plan and on July 9, 2007, filed a 2nd Amended
Reorganization Plan.  The Bankruptcy Court approved the Debtors'
amended Disclosure Statement on Oct. 19, 2007.  On Oct. 22,
2007, the Debtor re-filed a Consensual Plan & Disclosure
Statement and on Nov. 29, 2007, the Court confirmed the Debtors'
Consensual Plan.  Solutia emerged from chapter 11 protection
Feb. 28, 2008.  (Solutia Bankruptcy News, Issue No. 128;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)

                          *     *     *

Solutia Inc. continues to carry a corporate credit rating of B+
with stable outlook from Standard & Poor's Ratings Services.  
The rating was raised to its current level from D in March 2008
following the company's emergence from bankruptcy on Feb. 28,
2008, and the implementation of its financing plan.


SOLUTIA INC: Sells Town & Country Property for US$42.7 Million
--------------------------------------------------------------
Solutia Inc. has sold its 260,000-square-foot office building in
Town & Country, Mo., to Bluerock Real Estate, LLC, for
US$42,750,000.

Through this agreement, Solutia is able to free up cash to pay
down debt and for our core business operations while keeping
our headquarters at the current site through a long-term lease,
said James M. Sullivan, senior vice president and chief
financial officer, Solutia Inc.  Of the US$42,750,000 in
proceeds, Solutia used approximately US$19,500,000 to pay off
the current mortgage and the remainder for general corporate
purposes.

Solutia's corporate headquarters will continue to occupy
120,000 square feet of the building under a 10-year renewable
lease with Bluerock.  Pfizer Inc. and Savvis, Inc. also lease
office space in the building.

Solutia and its real estate advisor, Colliers Turley Martin
Tucker, began marketing the site earlier this year.  The site is
located at 575 Maryville Centre Drive, approximately 18 miles
west of downtown St. Louis.

                        About Solutia Inc.

Based in St. Louis, Missouri, Solutia Inc. (OTCBB: SOLUQ) (NYSE:
SOA-WI) -- http://www.solutia.com/-- and its subsidiaries,     
manufactures and sells chemical-based materials, which are used
in consumer and industrial applications worldwide.  Solutia
has operations in Malaysia, China, Singapore, Belgium, and
Colombia.

The company and 15 debtor-affiliates filed for chapter 11
protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Lead Case No. 03-
17949).  When the Debtors filed for protection from their
creditors, they listed US$2,854,000,000 in assets and
US$3,223,000,000 in debts.

Solutia is represented by Richard M. Cieri, Esq., Jonathan S.
Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis
LLP, in New York, as lead bankruptcy counsel, and David A.
Warfield, Esq., and Laura Toledo, Esq., at Blackwell Sanders
LLP, in St. Louis Missouri, as special counsel.  Trumbull Group
LLC is the Debtor's claims and noticing agent.  Daniel H.
Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq.,
at Akin Gump Strauss Hauer & Feld LLP represent the Official
Committee of Unsecured Creditors, and Derron S. Slonecker at
Houlihan Lokey Howard & Zukin Capital provides the Creditors'
Committee with financial advice.  The Official Committee of
Retirees of Solutia, Inc., et al., is represented by Daniel D.
Doyle, Esq., Nicholas A. Franke, Esq., and David M. Brown, Esq.,
at Spencer Fane Britt & Browne, LLP, in St. Louis, Missouri, and
Frank M. Young, Esq., Thomas E. Reynolds, Esq., R. Scott
Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, in
Birmingham, Alabama.

On Feb. 14, 2006, the Debtors filed their Reorganization Plan &
Disclosure Statement.  On May 15, 2007, they filed an Amended
Reorganization Plan and on July 9, 2007, filed a 2nd Amended
Reorganization Plan.  The Bankruptcy Court approved the Debtors'
amended Disclosure Statement on Oct. 19, 2007.  On Oct. 22,
2007, the Debtor re-filed a Consensual Plan & Disclosure
Statement and on Nov. 29, 2007, the Court confirmed the Debtors'
Consensual Plan.  Solutia emerged from chapter 11 protection
Feb. 28, 2008.  (Solutia Bankruptcy News, Issue No. 128;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).

                          *     *     *

Solutia Inc. continues to carry a corporate credit rating of B+
with stable outlook from Standard & Poor's Ratings Services.  
The rating was raised to its current level from D in March 2008
following the company's emergence from bankruptcy on Feb. 28,
2008, and the implementation of its financing plan.



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

DELTA AIR: Offers Two Non-Stop Flights Between U.S. and Ecuador
---------------------------------------------------------------
Delta Air Lines Inc. is offering new non-stop flights between
the United States and Ecuador, Trading Markets reports.

According to the report, the services will operate from Atlanta
to Ecuador that stops in both Quito and Guayaquil before
returning to Atlanta.  Starting Sept. 5, 2008, Delta will split
the route and offer nonstop service in each direction between
Atlanta and Quito.  Nonstop service in each direction between
Atlanta and Guayaquil opens Dec. 1, 2008.

"Both of these nonstop flights to Ecuador will help our
passengers save time while giving them a more pleasant, hassle-
free travel experience," said Christophe Didier, vice president
of sales and government affairs in Latin America and the
Caribbean for Delta Air Lines.  "The nonstop flight to Guayaquil
will launch in December to capitalize on peak demand during the
holiday season."

Based in Atlanta, Georgia, Delta Air Lines Inc. (NYSE:DAL) --
http://www.delta.com/-- is the world's second-largest airline
in terms of passengers carried and the leading U.S. carrier
across the Atlantic, offering daily flights to 328 destinations
in 56 countries on Delta, Song, Delta Shuttle, the Delta
Connection carriers and its worldwide partners.  Delta flies to
Argentina, Australia, and the United Kingdom.

The company and 18 affiliates filed for chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923).
Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents
the Debtors in their restructuring efforts.  Timothy R. Coleman
at The Blackstone Group L.P. provides the Debtors with financial
advice.  Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at
Akin Gump Strauss Hauer & Feld LLP, provide the Official
Committee of Unsecured Creditors with legal advice.  John
McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James
S. Feltman at Mesirow Financial Consulting, LLC, serve as the
Committee's financial advisors.

The Debtors filed a chapter 11 plan of reorganization and
disclosure statement explaining that plan on Dec. 19, 2007.  On
Jan. 19, 2007, they filed revisions to the plan and disclosure
statement, and submitted further revisions to the plan on
Feb. 2, 2007.  On Feb. 7, 2007, the Court approved the Debtors'
disclosure statement.  In April 25, 2007, the Court confirmed
the Debtors' plan.  That plan became effective on April 30,
2007.  The Court entered a final decree closing 17 cases on
Sept. 26, 2007.

GAMAVISION: Gov't Seizes Station Due to Debt Dispute
----------------------------------------------------
The Associated Press reports that the Ecuadorian government has
taken over Gamavision, along with TC Television and TC Noticias,
for alleged unsettled debts.

The AP relates that TC Television, TC Noticias, and Gamavision
are operated by relatives of William and Roberto Isaias, who
fled to the U.S. after being charged with embezzlement after
their bank Filanbanco collapsed in 1998.  Gamavision's President
Alvaro Dassum, a cousin of the two bankers, denied his firm's
connection with Filanbanco and the bankers.  

As reported in the Troubled Company Reporter-Latin America on
Nov 12, 2003, Filanbanco was intervened by authorities during
the 1998-1999 financial crisis.  Authorities ran the loss-making
operation until the bank's closure on July 17, 2001.  Three
firms -- Thesis Antares, Gomez Giraldo y Asociados, and Hunton &
William American Services -- had been awarded a contract to
recover US$392 million in bad loans.  But the contract process
was drawn out for several months because of legal problems and
requests for more information by interested companies.

Dozens of the Isaias Group's insurance, construction, and real
estate businesses were also confiscated.  According to the
government, about 195 companies were seized.  The firms were
allegedly linked to the Isaias.  The government said the firms
allegedly owe the nation millions.  

According to the AP, U.S. government officials estimated losses
of US$661 million for Filanbanco.  The confiscation of the
properties of the companies connected with the bank gives hope
that depositors could recover the money they lost when
Filanbanco collapsed, the government said.  Filanbanco owes
creditors about US$350 million and about 60,000 clients lost
money when the bank collapsed, the Associated Press relates,
citing Filanbanco Shareholders Association's President Oscar
Ayerve.

The seized companies would likely be auctioned off to repay
Filanbanco's depositors, the AP says, citing Ecuadorian
President Rafael Correa.

Reuters states that the confiscation of the television stations
is being described as a move against the freedom of speech.  
President Correa has frequently attacked the media and promised
to eradicate "corrupt elites".


TC NOTICIAS: Gov't Seizes Station Due to Debt Dispute
-----------------------------------------------------
The Associated Press reports that the Ecuadorian government has
taken over TC Noticias, along with TC Television and Gamavision,
for alleged unsettled debts.

The AP relates that TC Television, TC Noticias, and Gamavision
are operated by relatives of William and Roberto Isaias, who
fled to the U.S. after being charged with embezzlement after
their bank Filanbanco collapsed in 1998.  Gamavision's President
Alvaro Dassum, a cousin of the two bankers, denied his firm's
connection with Filanbanco and the bankers.  

As reported in the Troubled Company Reporter-Latin America on
Nov 12, 2003, Filanbanco was intervened by authorities during
the 1998-1999 financial crisis.  Authorities ran the loss-making
operation until the bank's closure on July 17, 2001.  Three
firms -- Thesis Antares, Gomez Giraldo y Asociados, and Hunton &
William American Services -- had been awarded a contract to
recover US$392 million in bad loans.  But the contract process
was drawn out for several months because of legal problems and
requests for more information by interested companies.

Dozens of the Isaias Group's insurance, construction, and real
estate businesses were also confiscated.  According to the
government, about 195 companies were seized.  The firms were
allegedly linked to the Isaias.  The government said the firms
allegedly owe the nation millions.  

According to the AP, U.S. government officials estimated losses
of US$661 million for Filanbanco.  The confiscation of the
properties of the companies connected with the bank gives hope
that depositors could recover the money they lost when
Filanbanco collapsed, the government said.  Filanbanco owes
creditors about US$350 million and about 60,000 clients lost
money when the bank collapsed, the Associated Press relates,
citing Filanbanco Shareholders Association's President Oscar
Ayerve.

The seized companies would likely be auctioned off to repay
Filanbanco's depositors, the AP says, citing Ecuadorian
President Rafael Correa.

Reuters states that the confiscation of the television stations
is being described as a move against the freedom of speech.  
President Correa has frequently attacked the media and promised
to eradicate "corrupt elites".


TC TELEVISION: Gov't Seizes Station Due to Debt Dispute
-------------------------------------------------------
The Associated Press reports that the Ecuadorian government has
taken over TC Television, along with TC Noticias and Gamavision,
for alleged unsettled debts.

The AP relates that TC Television, TC Noticias, and Gamavision
are operated by relatives of William and Roberto Isaias, who
fled to the U.S. after being charged with embezzlement after
their bank Filanbanco collapsed in 1998.  Gamavision's President
Alvaro Dassum, a cousin of the two bankers, denied his firm's
connection with Filanbanco and the bankers.  

As reported in the Troubled Company Reporter-Latin America on
Nov 12, 2003, Filanbanco was intervened by authorities during
the 1998-1999 financial crisis.  Authorities ran the loss-making
operation until the bank's closure on July 17, 2001.  Three
firms -- Thesis Antares, Gomez Giraldo y Asociados, and Hunton &
William American Services -- had been awarded a contract to
recover US$392 million in bad loans.  But the contract process
was drawn out for several months because of legal problems and
requests for more information by interested companies.

Dozens of the Isaias Group's insurance, construction, and real
estate businesses were also confiscated.  According to the
government, about 195 companies were seized.  The firms were
allegedly linked to the Isaias.  The government said the firms
allegedly owe the nation millions.  

According to the AP, U.S. government officials estimated losses
of US$661 million for Filanbanco.  The confiscation of the
properties of the companies connected with the bank gives hope
that depositors could recover the money they lost when
Filanbanco collapsed, the government said.  Filanbanco owes
creditors about US$350 million and about 60,000 clients lost
money when the bank collapsed, the Associated Press relates,
citing Filanbanco Shareholders Association's President Oscar
Ayerve.

The seized companies would likely be auctioned off to repay
Filanbanco's depositors, the AP says, citing Ecuadorian
President Rafael Correa.

Reuters states that the confiscation of the television stations
is being described as a move against the freedom of speech.  
President Correa has frequently attacked the media and promised
to eradicate "corrupt elites".


* ECUADOR: Bonds Tumble on News of F. Ortiz's Resignation
---------------------------------------------------------
Naomi Mapston of the Financial Times reports that Ecuador's
bonds suffered losses after the resignation of the country's
finance minister, Fausto Ortiz.

As widely reported, Mr. Ortiz resigned from his finance minister
post, on July 7, after the Ecuadorean government seized some
television stations and more than 190 companies that allegedly
have links to parties involved in the 1990s banking crisis.  
Economist Wilma Salgado was named as Mr. Ortiz's replacement.  

According to Ms. Tampston's report, the country's debt market
suffered sharp losses on Tuesday on the news of the finance
minister stepping down.  "The country's benchmark bonds suffered
the biggest one-day falls of the year and the key 2015 bond fell
3 per cent on concerns that Mr Ortiz's departure could open the
way for a restructuring of Ecuador's external debt," Ms.
Tampston writes.

Reuters also noted that Ecuador's most actively traded bond, the
global due in 2030, fell 4 points to bid 93 with a yield of
10.767, marking the steepest drop in the bond since mid-March.



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

* GRENADA: Int'l Monetary Fund Okays US$4.8 Mil. Financing
----------------------------------------------------------
The International Monetary Fund has completed the first review
of Grenada's economic performance under the Poverty Reduction
and Growth Facility or PRGF and has approved the funding of
US$4.8 million to the country.

The PRGF is the IMF's concessional facility for low-income
countries.  PRGF loans carry an annual interest rate of 0.5% and
are repayable over 10 years with a five and a half-year grace
period on principal payments.

Given the delay in completing this review and sharp increases in
world food and fuel prices, the IMF also approved a one-year
extension of the PRGF arrangement to 2010.  It also approved the
rephasing of the remaining disbursements and the augmenting of
the arrangement by US$2.4 million.

The first review was delayed because of the time needed to
address an unregulated bank, fiscal slippages, and the slow pace
of structural reforms.  The IMF granted the authorities' request
for a waiver of a missed 2006 quantitative performance criterion
on the central government primary balance, which was missed in
part because of higher-than-anticipated costs of reconstruction.

The three-year PRGF arrangement with Grenada was initially
approved for a total amount equivalent to US$17.1 million on
April 18, 2006.  After the augmentation, the total amount of the
arrangement will be equivalent to US$19.4 million.

Murilo Portugal, Deputy Managing Director and Acting Chair of
the IMF's Executive Board, said, "The authorities are to be
commended for implementing policies to bring the economic reform
program back on track.  Grenada's economy has rebounded from the
devastation of Hurricanes Ivan and Emily, driven by spending for
reconstruction and by tourism.  While annual inflation is
projected to increase in 2008, reflecting rising world fuel and
food prices, medium-term prospects are favorable, given several
major tourism projects under way and in the pipeline."

"The authorities have made considerable progress with their
reform agenda, including introducing the National Reconstruction
Levy and a flexible fuel pricing mechanism, strengthening tax
administration, reducing vulnerabilities, and enhancing
transparency and the investment environment.  However, more
progress needs to be made in strengthening fiscal policies," Mr.
Portugal stated.  "Restoring fiscal and debt sustainability
remains the centerpiece of the authorities' program.  The fiscal
program targets an overall deficit for 2008 in line with debt
sustainability.  The authorities are taking steps to improve
expenditure control and strengthen capacity to screen and
prioritize capital projects," Mr. Portugal added.

Mr. Portugal said, "The authorities are working on a resolution
strategy for an unregulated bank.  The establishment of the
Grenada Authority for the Regulation of Financial Institutions
(GARFIN) will promote financial sector stability by enhancing
supervision of the broader financial sector, including the
insurance sector.  The revised structural reform agenda reflects
the authorities' priorities and implementation capacity and will
focus in 2008 on enhancing the investment climate, reforming the
tax concessions regime, and improving tax and customs
administration.  The authorities remain committed to reducing
poverty and improving social indicators.  They aim to address
the impact of rising world fuel and food prices through targeted
assistance to vulnerable groups.  The Fund has approved an
increase in its financial assistance to Grenada to help with the
higher food import bill.  Completion of the Country Poverty
Assessment in December 2008 will support preparation of the full
Poverty Reduction Strategy Paper."

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
May 23, 2008, Standard & Poor's Ratings Services affirmed its
'B-' long-term and 'C' short-term sovereign credit ratings on
Grenada.  S&P said the outlook on Grenada remains stable.



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

AIR JAMAICA: Minister Seeks Cut in Parliament Members' Perks
------------------------------------------------------------
Don Wehby, Minister Without Portfolio in the Finance Ministry,
has reportedly proposed to cut the free first class trips Air
Jamaica provides to parliament members to two from four, Radio
Jamaica reports.

According to Radio Jamaica, Minister Wehby is expected to ask
the Cabinet to sanction a slash in the perks.

As reported in the Troubled Company Reporter-Latin America on
March 18, 2008, Deputy Financial Secretary Robert Martin said
the Cabinet would review Air Jamaica's policy of offering
complimentary first-class tickets to parliamentarians and their
spouses.  Air Jamaica's Financial Controller Paula Brown said
before the Public Accounts Committee of the House of
Representatives that examined queries about the airline's
operation that parliamentarians and their spouses were offered
four complimentary first-class tickets every year.

Radio Jamaica relates that the policy of providing free trips
would reportedly be eradicated in the long term.

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: Shirley Williams Defends Former Directors
------------------------------------------------------
Air Jamaica Chairperson Shirley Williams has criticized a
newspaper report that said the airline's former board members
were "dumped", Radio Jamaica reports.

As reported in the Troubled Company Reporter-Latin America on
July 4, 2008, Jamaican officials dismissed most of the 14-
member board at Air Jamaica, except for the airline's Ms.
Williams.   Richard Byles, Wilfred Bagaloo, Dennis Lalor, and
Omar Parkins were retained as board members.

The directors who were asked to leave Air Jamaica worked hard
while serving on the board, Radio Jamaica cites Ms. Williams as
saying.  They had given time and expertise free of cost to help
stabilize the airline, Ms. Williams added.

Radio Jamaica notes that Miss Williams said that under the
previous board, the Air Jamaica staff was reduced by 348.  
According to Ms. Williams, several routes were terminated and
consolidated during that time and costs saving measures were
implemented.

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.


NATIONAL WATER: Drought Affects 10% of Water Systems
----------------------------------------------------
Radio Jamaica reports that recent drought conditions have
affected 10% of The National Water Commission of Jamaica's 460
water systems all across Jamaica.

Radio Jamaica relates that the Commission's Corporate Public
Relations Manager Charles Buchanan said, "The NWC [The
Commission] has had to put in place several water management
measures aimed at reducing the impact on our customers and
ensuring as much as is possible that people have normal supply
for as long a time as is possible.  So we are trucking water,
doing valve regulation and scheduled rationing of water
depending on the nature and layout of the particular water
supply system."

According to Radio Jamaica, The Commission said these areas are
badly affected:

          -- St. Catherine,
          -- Clarendon,
          -- Portland,
          -- St. Thomas, and
          -- St. Elizabeth.

The Commission has advised its St. Catherine customers of water
interruptions affecting its Friendship Well from July 9 to
July 13.  Radio Jamaica relates that The Commission is asking
its customers to conserve water.

The National Water Commission is a statutory organization
charged with the responsibility of providing potable water and
wastewater services for the people of Jamaica.

                        *     *     *

The National Water Commission of Jamaica had been criticized for
failing to act promptly in cutting its losses.  For the fiscal
years 2002 and 2003, the water commission accumulated a net loss
of US$2.11 billion.  The deficit fell to US$1.86 billion the
following year, and to US$670 million in 2004 and 2005.

Jamaican citizens have been complaining to the commission about
water disruptions in their communities, resulting to
restrictions of water use.


SUGAR CO: People's Nat'l Party Seeks Clarification on Divestment
----------------------------------------------------------------
The People's National Party has asked for clarification from the
Jamaican government on the sale of the Sugar Company of Jamaica
Limited's five sugar factories to Infinity Bio-Energy Limited,
Radio Jamaica reports.

As reported in the Troubled Company Reporter-Latin America on
July 1, 2008, the Sugar Company will surrender ownership of its
sugar factories to Infinity Bio-Energy.  Jamaica's Prime
Minister Bruce Golding signed a Head of Agreement with Infinity
Bio-Energy for the factories' divestment.  As agreed, the Sugar
Company will still be managing the government's assets at the
six sugar factories and the workers' status won't change before
the final transfer of assets on Sept. 30.  After the assets are
transferred to Infinity Bio-Energy, the government will keep a
25% stake in the company for at least three years.

According to Radio Jamaica, the People's National Party said it
will reserve comment on the factories' divestment until the
government clarifies issues like the pricing policy that
Infinity Bio-Energy will use to pay Jamaican cane farmers.  The
party's agriculture spokesperson Roger Clarke said, "Before
anything is finalized, I'd like to know what is going to be the
formula for how the cane farmers will be paid ... I understand
that there are different modalities in the Brazilian system.  I
want to know if it's compatible with what is happening in our
system today."  The government should explain how financing from
the European Union will be used for the transformation of the
sugar industry, Mr. Clarke added.

Radio Jamaica states that Mr. Clarke asked the government what
will happen to the Jamaica Cane Products Sales Limited and the
Sugar Industry Research Institute after the divestment of the  
factories.

The Sugar Company of Jamaica Limited, a.k.a. SCJ, was formed in
November 1993 by a consortium made up of J. Wray & Nephew
Limited, Manufacturers Investments Limited and Booker Tate
Limited.  The three companies each held 17% equity in SCJ, with
the remaining 49% being held by the government of Jamaica.  In
1998, the government became the sole shareholder of SCJ by
acquiring the interests of the members of the consortium. Its
stated goal was to maximize efficiency, productivity and
profitability of the three sugar factories, within three years.
The principal activities of the company are the cultivation of
cane and the manufacture and sale of sugar and molasses.

The Sugar Company of Jamaica Limited registered a net loss of
almost US$1.1 billion for the financial year ended Sept. 30,
2005, 80% higher than the US$600 million reported in the
previous financial year.  Sugar Company blamed its financial
deterioration to the reduction in sugar cane production.
According to published reports, the Jamaican government has
taken responsibility for the payment of the firm's debts.  Radio
Jamaica has said that to date, the five sugar factories have
incurred J$3 billion in debts.  The government is now selling
the factories.



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

CORPORACION GEO: To Release 2nd Quarter 2008 Results on July 24
---------------------------------------------------------------
Corporacion Geo S.A.B. de C.V. will hold its second quarter 2008
conference call on July 25, 2008 at 11:00 am U.S. ET (10:00 am
Mexico City Time).  The earnings press release for the second
quarter 2008 will be issued on July 24, 2008, after market
close.

The conference call can be accessed by:

       Tel. Numbers: (888) 713-4209 (U.S.)
                    (617) 213-4863 (international)
       Passcode: 27348124

The company suggest a pre-registration for the conference call
at:

http://www.theconferencingservice.com/prereg/key.process?key=PP6
MTKCXH

A replay will be available on July 25, 2008 at 12:00 PM US ET,
ending at midnight U.S. ET on Aug. 1, 2008.  The replay is
accessible by:

      Tel. Numbers: (888) 286-8010 (U.S.) or
                    (617) 801-6888 (international)
      Passcode:     16207645

A live web cast of the conference call and replay will be
available at the company's website.

Headquartered in Mexico, Corporacion Geo, S.A. de C.V. --
http://www.corporaciongeo.com-- specializes in the construction  
of affordable low-income housing with operations in 33 cities
across 15 states in Mexico.

                          *      *      *

As reported in the Troubled Company Reporter-Latin America on
Aug. 20, 2007, Standard & Poor's ratings services has lowered
its long-term corporate credit rating on Corporacion Geo S.A.B.
de C.V. to 'BB-' from 'BB'.  At the same time, S&P lowered its
national scale rating on Geo to 'mxA-' from 'mxA'.  The outlook
is stable.  All ratings were removed from CreditWatch, where
they were placed on June 18, 2007, with negative implications.  
S&P also lowered its senior unsecured ratings on Geo's long-term
domestic medium-term notes to 'mxA-' from 'mxA', and affirmed
its 'mxA-2' ratings on Geo's short-term debt programs.


FRESENIUS SE: APP Pharmaceuticals Deal Cues Fitch's Neg. Outlook
----------------------------------------------------------------
Fitch Ratings has changed Germany-based health care group
Fresenius SE's Outlook to Negative from Stable and affirmed its
ratings.  The ratings of its subsidiary Fresenius Medical Care
AG & CO.  KGaA and of the group's respective debt instrument are
also affirmed.

This follows the company's agreement to purchase APP
Pharmaceuticals Inc., a leading manufacturer of generic I.V.
drugs in North America, for a cash consideration of
US$3.7 billion plus an additional US$900 million of net debt
assumed and a Contingent Value Right.  These rating actions have
been taken:

Fresenius SE:

  -- Long-term Issuer Default rating affirmed at 'BB'; Outlook
     changed to Negative from Stable

  -- Short-term IDR affirmed at 'B'

  -- Senior unsecured debt rating affirmed at 'BB'

Fresenius Finance B.V.:

  -- Senior unsecured debt rating for guaranteed senior notes
     affirmed at 'BB'

Fresenius Medical Care AG & CO. KGaA (FMC):

  -- Long-term IDR affirmed at 'BB' with Negative Outlook

  -- Short-term IDR affirmed at 'B'

  -- Senior unsecured debt rating affirmed at 'BB'

Fresenius Medical Care Capital Trusts:

  -- Subordinated rating for guaranteed trust preferred
     securities affirmed at 'B+'

"Although the acquisition causes a temporary deterioration in
Fresenius's debt protection measures in the short-term, it is
slightly positive for its business profile by adding a high-
margin business with good sales growth potential," said Britta
Holt, a Director in Fitch's Corporate group.

The acquisition price could be adjusted by a CVR leading to a
cash payment for Fresenius of up to US$6 per share in 2011, if
an undisclosed cumulative adjusted EBITDA target for 2008, to
2010 is achieved by APP.  The potential 2011 payout of up to
around US$1 billion will be treated as debt in 2011, if it
materializes.  The transaction is subject to regulatory approval
and is expected to be completed at end-2008 or the beginning of
2009.  Even if the transaction does not go ahead, Fitch may keep
the Outlook Negative if significant acquisition risk is still
perceived.

The acquisition of APP Pharmaceuticals is in line with
Fresenius's strategy to further gain exposure to generic
intravenous drugs, which are generally more difficult to
manufacture and characterized by high profitability.  It also
gives Fresenius subsidiary, Kabi, access to the US market, where
it is not yet present.  Through the addition of APP, Fresenius
also obtains the rights for generic heparin, a drug that is
often used in dialysis.  Given APP's dominant market position in
this drug, this might lead to regulatory hurdles, although Fitch
views them as likely to be manageable.

While Fitch does not envisage major restructuring/integration
costs post completion, there is no headroom for further
acquisition within the current credit metrics.  A return of the
Outlook to Stable will be subject to the finalization of the
financing structure indicated to Fitch, which is expected to
include a mix of debt and equity, as well as Fresenius's de-
leveraging profile in 2009 and beyond.  A downgrade might be
considered if Fresenius's final financing structure includes
less equity than expected and if de-leveraging suffers material
delays.

The ratings are supported by Fresenius's global number one
market position in dialysis products and services, a non-
cyclical and steadily growing business with relatively
predictable cash flows.  Its vertical integration generates cost
advantages, and builds on its reputation for providing quality
and technological advances.  Negative rating factors are the
group's over-reliance on dialysis, which accounted for 68% of
fiscal year 2007 EBITDA, and activity in dialysis is subject to
private insurers' and governments' reimbursement policies.  
Increased leverage following the APP acquisition is also another
factor weighing on the ratings.

Fresenius SE is a global health care company with products and
services for dialysis (through Fresenius Medical Care);
healthcare services (Helios) and facilities management (Vamed);
and nutrition and infusion therapies (Fresenius Kabi).  For the
fiscal year ended on Dec. 31, 2007, Fresenius SE generated
consolidated sales of EUR11.4 billion.  The company has
operations in Brazil and Mexico.

Based in Bad Homburg, Germany, Fresenius Medical Care AG & Co.
KGaA is the world's leading provider of dialysis products and
services.  For the fiscal year ended 31 December 2007, Fresenius
Medical Care generated net revenues of US$9.7 billion.


FRESENIUS SE: Inks US$5BB Merger Deal With APP Pharmaceuticals
--------------------------------------------------------------
Fresenius SE and APP Pharmaceuticals Inc. entered into a
definitive merger agreement in which Fresenius will acquire APP
for approximately US$5.6 billion.

Under the terms of the agreement, Fresenius will acquire the
outstanding common stock of APP for US$23.00 in cash per share
plus a contingent value right or CVR that could deliver up to an
additional US$970 million if the financial results of the
company meet certain targets.  The cash consideration of
US$23.00 per share and potential for total value of US$29.00 per
share represents a premium of 29% and 63% over the company's
closing stock price on July 3, 2008.

Based on the cash purchase price of US$23.00 per share, the
transaction values the fully diluted equity capital of APP at
approximately US$3.7 billion; and with the CVR, if fully
realized, at a value of US$4.6 billion.  Fresenius will also
assume all of APP's outstanding debt which totals approximately
US$940 million, net of cash.  

"We are proud to have consistently provided injectable
pharmaceutical products of the highest quality to patients in
the acute care setting over the past decade," Patrick Soon-
Shiong M.D., founder and chairman of APP, said.  "In Fresenius
we have found a partner with the same commitment to quality and
dedication to patient care."  

"The combined company will allow for the rapid globalization of
APP's portfolio with the same high levels of quality and patient
commitment for which we have become known, while at the same
time providing a more comprehensive and complementary offering
of injectable pharmaceuticals, devices and delivery systems to
customers worldwide," Mr. Soon-Shiong stated.

APP will join Fresenius as part of its Fresenius Kabi division.
Through the acquisition of APP, Fresenius Kabi enters the US
pharmaceutical market and achieves a leading position in the US
injectable generics market.  The presence of Fresenius combined
with APP's extensive market penetration in the U.S. will create
substantial opportunities for growth for both companies.

"APP is a fast-growing, highly profitable company with a strong
management team that has an excellent market position in the
U.S.  Our firm very much shares APP's dedication to quality and
medical excellence for the benefit of patients," Dr. Ulf Mark
Schneider, chairman of the management board of Fresenius SE
commented.  "The acquisition provides significant growth
opportunities for Fresenius Kabi."

"With the APP platform, Fresenius Kabi will be able to market
its product range in the U.S. Fresenius Kabi's international
marketing and sales network will allow us to sell APP's products
globally," Mr. Schneider added.  "We welcome APP employees to
our team and very much look forward to serving the North
American healthcare community."

"We are excited about joining the Fresenius family of businesses
and the opportunities this combination will provide for
expanding our commitment to patient care on a global basis," Tom
Silberg, president and chief executive officer of APP, said.  
"Fresenius is widely recognized as a leader in global healthcare
products and services.  This combination builds on the strengths
of both companies and the potential to focus on long-term
growth, product pipeline and innovation."

The transaction is subject to certain closing conditions,
including regulatory approvals, and approvals under the Hart-
Scott-Rodino Antitrust Improvements Act of 1976.  The
controlling stockholders of APP have executed a written consent
providing the requisite stockholder approval for the merger.  

The terms of the transaction provide for the payment by APP of a
termination fee in the event that APP terminates the transaction
to accept a superior proposal.

Goldman, Sachs & Co. and Lazard Frères & Co. LLC served as
advisors to APP Inc.  Fried Frank Harris Shriver & Jacobson LLP
served as legal advisor to APP.  Deutsche Bank advised Fresenius
on this transaction.  Skadden, Arps, Slate, Meagher & Flom LLP
served as legal advisor to Fresenius.

                    About APP Pharmaceuticals

Headquartered in Schaumburg, Illinois, APP Pharmaceuticals Inc.
is a hospital-based injectable pharmaceutical company, focusing
on oncology, anti-infective, anesthetic/analgesic and critical
care markets.  The company develops, produces and markets a
comprehensive portfolio of over 100 hospital-based injectable
products and operates three manufacturing facilities producing a
comprehensive range of dosage formulations, including
lyophilization.

At March 31, 2008, the company's balance sheet showed total
assets of US$1,087,100,000 and total liabilities of
US$1,160,010,000, resulting in a total stockholders' deficit of
US$72,910,000.

                         About Fresenius

Fresenius SE is a global health care company with products and
services for dialysis (through Fresenius Medical Care);
healthcare services (Helios) and facilities management (Vamed);
and nutrition and infusion therapies (Fresenius Kabi).  For the
fiscal year ended on Dec. 31, 2007, Fresenius SE generated
consolidated sales of EUR11.4 billion.  The company has
operations in Brazil and Mexico.

Based in Bad Homburg, Germany, Fresenius Medical Care AG & Co.
KGaA is the world's leading provider of dialysis products and
services.  For the fiscal year ended 31 December 2007, Fresenius
Medical Care generated net revenues of US$9.7 billion.


FRESENIUS SE: Moody's May Lower Ba1 Ratings After Review
--------------------------------------------------------
Moody's Investors Service has placed the Ba1 corporate family
rating of Fresenius SE and the Ba1 senior unsecured ratings of
its guaranteed subsidiary Fresenius Finance B.V. under review
for possible downgrade, following the announcement that
Fresenius Kabi, a business segment of Fresenius, has signed
definitive agreements to acquire APP Pharmaceutical's, Inc. for
a total cash consideration of US$3.7 billion for share capital
plus US$0.9 billion of net debt.  APP is a manufacturer of
intravenously administered generic drugs in North America.

While the current Ba1 corporate family rating for Fresenius SE
considered to some extent the risk of sizable opportunistic
acquisitions, as outlined in Moody's Credit Opinion published in
May 2008, Moody's expected any sizeable acquisitions to be only
partially debt financed, while management indicated that the
largest part of the APP acquisition financing will consist of
debt instruments.

The rating review will focus on:

   (1) the expected capital structure of the acquisition
       financing;

   (2) the time frame of de-leveraging by debt reduction and/or
       performance improvements of the group; and

   (3) the benefits of the acquisition on the group's overall
       business profile.

Moody's understands that the acquisition financing has been
fully committed.  Considering the magnitude of the potential
leverage increase, compared with additional profit and cash flow
contributions of APP and Fresenius Kabi's improved market
position in the North American market, Moody's believes that a
potential ratings downgrade is likely to be limited to one
notch.

The previous rating action for Fresenius SE was on May 18, 2008,
when Moody's upgraded the ratings for Fresenius from Ba2 to Ba1.

On Review for Possible Downgrade:

Issuer: Fresenius Finance BV

   -- Senior Unsecured Regular Bond/Debenture, Placed on Review
      for Possible Downgrade, currently Ba1

   -- Senior Unsecured Regular Bond/Debenture, Placed on Review
      for Possible Downgrade, currently 43 - LGD3

Issuer: Fresenius SE

   -- Probability of Default Rating, Placed on Review for
      Possible Downgrade, currently Ba1

   -- Corporate Family Rating, Placed on Review for Possible
      Downgrade, currently Ba1

Outlook Actions:

Issuer: Fresenius Finance BV

   -- Outlook, Changed To Rating Under Review From Stable

Issuer: Fresenius SE

   -- Outlook, Changed To Rating Under Review From Stable

The ratings of Fresenius Medical Care, a company in which
Fresenius SE has a 36% stake are not affected by the rating
action, as Moody's assumes no changes in the company's dividend
policy, which in addition has restrictions under the
documentation of Fresenius Medical Care's senior secured credit
facility.

Fresenius SE is a global health care company with products and
services for dialysis (through Fresenius Medical Care);
healthcare services (Helios) and facilities management (Vamed);
and nutrition and infusion therapies (Fresenius Kabi).  For the
fiscal year ended on Dec. 31, 2007, Fresenius SE generated
consolidated sales of EUR11.4 billion.  The company has
operations in Brazil and Mexico.

Based in Bad Homburg, Germany, Fresenius Medical Care AG & Co.
KGaA is the world's leading provider of dialysis products and
services.  For the fiscal year ended 31 December 2007, Fresenius
Medical Care generated net revenues of US$9.7 billion.


STEVE & BARRY'S: To File Chapter 11 Bankruptcy Protection
---------------------------------------------------------
Steve & Barry's is expected to file for Chapter 11 bankruptcy
protection today, July 9, 2008, The Wall Street Journal relates.

WSJ, citing people familiar with the matter, says that the
company is considering liquidating its assets due to its failure
to raise rescue financing in recent weeks.  

WSJ indicates that the company has also been in discussions with
Sears Holdings Corp., about a bail-out or partial sale.

According to WSJ, the filing would be devastating to mall owners
across the country.  WSJ says there is also a possibility that
all of the 275 stores will close, leaving thousands of its
employees jobless.  Some vendors have already stopped shipping
to the company in anticipation of a filing, WSJ points out.

Steve & Barry's main lender is the commercial-lending unit of
General Electric Co., the Journal states.  GE, the Journal
relates, is expected to be made whole in any reorganization,
though TA Associates, a private-equity firm that invested
US$320 million in 2006, faces far worse recovery prospects.

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

As reported by The Troubled Company Reporter on July 1, 2008,
WSJ's Jeffrey McCracken and Peter Lattman reported that retailer
Steve & Barry's LLC was readying plans to shutter more than 100
outlets, and is contemplating a full liquidation if it fails to
secure emergency funding.


STEVE & BARRY'S: Retail Industry Experts Explain Firm's Downfall
----------------------------------------------------------------
Three retail industry experts talked with Newsday staff writer
James Bernstein on Monday regarding the problems hounding Steve
& Barry's LLC:

   1. Howard Davidowitz, chairman of Davidowitz & Associates, a
      retail consulting and investment banking firm,

   2. Steven B. Greenberg, president of The Greenberg Group,
      real estate advisers to leading retailers,

   3. Barry Berman, a professor of marketing at Hofstra
      University in Uniondale, New York.

Mr. Bernstein says the experts believe the company's best course
of action is to close stores and file for Chapter 11.  Mr.
Davidowitz explained to Mr. Bernstein that persuading vendors to
provide new merchandise won't be easy.

Various reports say the company may have to close as many as 100
of its 270 stores and file for Chapter 11 bankruptcy protection.  
The Wall Street Journal has said the company may file for
bankruptcy early Wednesday.

The company has not responded to the reports, according to Mr.
Bernstein.

According to Mr. Bernstein, analysts believe Steve & Barry's may
have expanded too rapidly and worked on a business model that
was based on a shaky foundation.

Mr. Davidowitz pointed Mr. Bernstein to the company's large
spaces being leased by the company.  While the company may have
received inducements to sign up for the big spaces, like free
rent for a few months, eventually the rent bills came due, Mr.
Davidowitz explained.  Mr. Davidowitz also pointed to the
company's licensing agreements with high-profile personalities
like Sarah Jessica Parker of "Sex and the City," and basketball
player Stephon Marbury.

Mr. Davidowitz told Mr. Bernstein the endorsements may have
required the company to pay higher fees, offsetting any sales
booster, if any.

Mr. Greenberg said Steve & Barry's margins were probabily low.  
Mr. Greenberg said "[L]uxury retailers work off large margins. .
. But Steve & Barry's mantra seemed to be, 'You can get it here
less expensively.' They were overly excessive about that."

Mr. Berman agrees the poor economy also contributed to the
company's woes.  "[T]he economy is such that people seem to be
delaying purchases of even inexpensive clothing," Mr. Bernstein
quotes Mr. Berman as saying.

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

According to the Troubled Company Reporter on July 1, 2008, The
Wall Street Journal's Jeffrey McCracken and Peter Lattman said
Steve & Barry's is readying plans to shutter more than 100
outlets, and is contemplating a full liquidation if it fails to
secure emergency funding.  Messrs. McCracken and Lattman, citing
people familiar with the situation, said Steve & Barry's is
looking for US$40,000,000 in financing if it must file for
bankruptcy.

According to the Troubled Company Reporter on June 23, 2008, the
company has tapped Goldman Sachs Group Inc. to help seek out
financing.   The TCR said the company has been approaching a
number of financial institutions to obtain funding for its
operations for the rest of the year.  Without additional
capital, the company's fate will be determined by the
commercial-lending unit of General Electric Co., which provided
roughly US$200,000,000 in loans in March.  The company is in
default on that loan.

Steve & Barry's could seek bankruptcy protection sometime in
July, the TCR related.

Messrs. McCracken and Lattman said Steve & Barry's has
approached other retailers like Wal-Mart Stores Inc., Gap Inc.
and Sears Holding Corp. owner Eddie Lampert for possible
investment ties, but those retailers have shown little interest.  
Messrs. McCracken and Lattman also said GE has also explored
whether Steve & Barry's could exist as solely a wholesaler on
the strength of its brand name.


WOLVERINE TUBE: Selling Canadian Plumbing Tube Biz for US$42MM
--------------------------------------------------------------
Wolverine Tube Inc. has sold its Canadian plumbing tube unit for
US$42 million in cash.

Steven S. Elbaum, Chairman of Wolverine, stated, "The sale of
this unit is in line with Wolverine's strategy of focusing its
business and capital on the development and sale of value added,
energy efficient heat transfer tubing, fabricated assemblies and
metal joining products to market leading customers.  
Additionally, net proceeds from the sale strengthen Wolverine's
balance sheet and position it for attractive long-term global
growth opportunities in its core business.  Wolverine's net debt
is approximately US$133 million after giving effect to the sale,
down from US$264 million at June 30, 2007.  Net debt is expected
to decline below US$100 million by year-end as a result of
improved working capital management and seasonal factors."

"With approximately US$850 million in annual revenues (post the
announced sale) in its core business and as a key supplier to
market leaders, Wolverine is better positioned to profitably
grow, particularly as the overall economic climate improves in
2009 and beyond."

Harold M. Karp, Wolverine's President and Chief Operating
Officer, commented, "Wolverine is now keenly focused on
operations that will generate the products and performance
improvements for our strategic customers and markets. We will
continue to invest in those core operations to lower our cost
and deliver best in class performance and energy efficient
products to our customers."

                       About Wolverine Tube

Headquartered in Huntsville, Alabama, Wolverine Tube Inc.
(OTC BB: WLVT) -- http://www.wlv.com/-- is a manufacturer and   
distributor of copper and copper alloy tube, fabricated
products, and metal joining products.  The company currently
operates 8 facilities in the United States, Mexico, Canada,
China and Portugal.  The company also has a distribution
operation in The Netherlands.  The company's products enhance
performance and energy efficiency in many applications,
including: commercial and residential heating, ventilation and
air conditioning, refrigeration, home appliances, industrial
equipment, power generation, petrochemicals and chemical
processing.

                          *     *     *

In November 2007, Moody's Investors Service confirmed Wolverine
Tube's Caa2 corporate family rating, Caa2 probability of default
rating, and Caa3 senior unsecured rating (LGD4, 63%).  The
rating outlook was revised to negative from ratings under
review.


* MEXICO: Moody's Baa1/Stable Ratings Reflect Moderate Debts
------------------------------------------------------------
In its annual report on Mexico, Moody's Investors Service says
its Baa1 local and foreign-currency government bond ratings and
stable outlook reflect moderate government and external debt
ratios, an ongoing commitment to conservative economic policies.

"Mexico's ratings reflect low fiscal deficits over an extended
period of time, as well as steady improvement in the
government's debt profile," said Moody's Vice President and
author of the report, Mauro Leos.  "The government's balance
sheet risks have been reduced as the authorities have been able
to extend debt maturities, reduce overall financial costs of
government debt, and increase markedly the share of local
currency-denominated debt."

While Mexico's ratings benefit from increased economic and
financial integration due to NAFTA, the analyst said, this comes
with a downside in the form of a high dependence on the US
economic cycle.  Elements that constrain Mexico's ratings
include a low tax revenue-to-GDP ratio and uncertainty about
oil-related government income beyond the current period of high
prices.

"Recently created fiscal stabilization funds provide room for
financial maneuver," observed Mr. Leos.  "However,
vulnerabilities derived from declining oil production and its
adverse implications for the sustainability of oil-related
revenues pose medium-term challenges to government finances
underscoring the need for reforms that strengthen fiscal
fundamentals."

The analyst said the stable outlook balances expectations that
structural reforms will advance only slowly, with the view that
the government would be willing and able to adjust public
spending in order to preserve moderate fiscal deficits, when
faced with adverse revenue shocks.

"As conditions required to achieve consensus-building and
political compromise remain elusive," said Mr. Leos,
"uncertainty about Mexico's ability to more forcefully advance
on still-pending structural reforms raise concerns about
medium-term risks to growth and fiscal prospects."

Moody's report, "Mexico: 2008 Credit Analysis," is a yearly
update to the markets and is not a rating action.



=================
N I C A R A G U A
=================

INFINITY ENERGY: Gov't Council OKs Nicaraguan Exploration Deals
---------------------------------------------------------------
Infinity Energy Resources, Inc., has reported that the regional
government council of the Autonomous Region of the Southern
Atlantic (RAAS) voted to approve the company's offshore
Nicaraguan exploration and development contracts on July 4,
2008.

"This represents the achievement of a critical objective in our
quest to secure final approval of our exploration and
development contracts involving Infinity's oil and gas
concessions offshore Nicaragua in the Caribbean Sea," commented
Stanton E. Ross, Chief Executive Officer of Infinity Energy
Resources, Inc.  The concessions cover an area of approximately
1.4 million acres.  "We applaud the manner in which the
President of the RAAS, Lourdes Aguilar Gibbs, and the various
authorities of the RAAS have worked with Infinity to approve
contracts that hold great promise for the citizens of the RAAS
if we are successful in our exploration and development efforts.  
The contracts must now go to the national government in Managua
for its final review and signature by Nicaragua's President,
which we hope will be forthcoming in a timely manner."

The company continues to seek the approval by the regional
government council of the Autonomous Region of the Northern
Atlantic (RAAN) of its contracts relating to the concession
under the jurisdiction of the RAAN.  The authorities of the RAAN
have asked the Company to make presentations to its communities,
similar to those recently conducted within the RAAS, after which
the Company remains hopeful that the RAAN will vote to approve
Infinity's project.  Due to assurances received from Nicaragua's
President and the cooperation and support of ProNicaragua (the
Nicaraguan Investment Promotion Agency) and the Ministry of
Energy and Mines, the Company remains hopeful this process will
soon be underway.

"Infinity Energy Resources is prepared to move forward
immediately with environmental studies, seismic and other
exploratory activities once permission is granted by the
Nicaraguan government," continued Mr. Ross.  "We believe that
the Perlas and Tyra concession blocks potentially contain
substantial quantities of oil beneath waters that range in depth
from 100 feet to 300 feet.  A number of international oil and
gas companies have already contacted Infinity regarding their
potential interest in partnering with us to develop the
concession."

Headquartered in Denver, Infinity Energy Resources Inc.
(NasdaqGM: IFNY) -- http://www.infinity-res.com/-- is an   
independent energy company engaged in the exploration,
development production of natural gas and oil and the
acquisition of natural gas and oil properties in Texas and the
Rocky Mountain region of the United States.  The company also
has a 1.4 million-acre oil and gas concession offshore Nicaragua
in the Caribbean Sea.

At March 31, 2008, the company's balance sheet showed total
assets of US$25.8 million, total liabilities of US$19.2 million
and total stockholders' equity of US$6.6 million.



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

HEALTHSOUTH CORP: Acquires Columbia Medical Rehabilitation Unit
---------------------------------------------------------------
HealthSouth Corporation entered into a definitive agreement to
acquire a 30-bed inpatient rehabilitation unit at the Medical
Center of Arlington in Texas.  The unit is owned by Columbia
Medical Center of Arlington Subsidiary L.P.

Once the transaction is complete, the unit's operations will
relocate to HealthSouth Rehabilitation Hospital of Arlington.

"We are very pleased to be able to offer HealthSouth's high
quality services to more patients in the Arlington area," said
Jay Grinney, HealthSouth's president and chief executive
officer.  "The Medical Center of Arlington has provided
exceptional rehabilitative care to patients in this community
for many years and we look forward to continuing this
tradition."

The closing of the transaction is subject to certain state and
federal regulatory approvals and is expected to take place in
the third quarter of 2008.

Headquartered in Birmingham, Alabama, HealthSouth Corp. (NYSE:
HLS) -- http://www.healthsouth.com/-- provides inpatient    
rehabilitation services.  Operating in 26 states across the
country and in Puerto Rico, HealthSouth serves more than 250,000
patients annually through its network of inpatient
rehabilitation hospitals, long-term acute care hospitals,
outpatient rehabilitation satellites, and home health agencies.

As reported in the Troubled company Reporter on May 9, 2008,
HealthSouth Corporation 's balance sheet at March 31, 2008,
showed US$2.0 billion in total assets, US$3.1 billion in total
liabilities, US$85.7 million in minority interest in equity of
consolidated affiliates, and US$387.4 million in convertible
perpetual preferred stock, resulting in a US$1.5 billion total
stockholders' deficit.

The company's consolidated balance sheet at March 31, 2008, also
showed strained liquidity with US$697.5 million in total current
assets available to pay US$911.9 million in total current
liabilities.


HORIZON LINES: To Release Second Quarter 2008 Earnings
------------------------------------------------------
Horizon Lines, Inc., will release results for its 2008 second
quarter before the opening of the market on July 25, 2008.
In conjunction with this release, Horizon Lines will host a
conference call, which will be simultaneously broadcast live
over the Internet, beginning at 11:00 a.m., Eastern Time.

During the conference call, senior executives will review
financial results for the 2008 second quarter and discuss
business developments during the quarter.  

These executives will be present during the call:

   * Charles G. Raymond, Chairperson, President and Chief
     Executive Officer

   * John V. Keenan, President and Chief Operating Officer of
     Horizon Lines LLC

   * Brian W. Taylor, President and Chief Operating Officer of
     Horizon Logistics LLC

   * John W. Handy, Executive Vice President, and

   * Michael T. Avara, Senior Vice President and Chief Financial
     Officer.

Those interested in participating may call: 1-800-218-0204

A hardcopy of the presentation materials may be printed from the
Horizon Lines web site, http://www.horizonlines.com,shortly  
before the start of the call.

Alternatively, a live audio webcast of the call may be accessed
at http://www.horizonlines.com. In order to access the live  
audio webcast, please allow at least 15 minutes before the start
of the call to visit Horizon Lines' web site and download and
install any necessary audio/video software for the webcast.

A replay of the conference call, beginning approximately two
hours after the call ends through Aug. 1, 2008, will be
accessible at:

  Tel. Number: 1-800-405-2236
  Passcode: 11117028

In addition, an archive of the webcast will be accessible at
Horizon Lines' web site, beginning approximately two hours after
the call ends, through Aug. 8, 2008.

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

                           *     *      *

As reported in the Troubled Company Reporter-Latin America on
May 27, 2008, Standard & Poor's Ratings Services has revised its
outlook on Horizon Lines Inc. to negative from stable.  S&P
affirmed the 'BB-' long-term corporate credit rating.  At the
same time, S&P affirmed the 'BB+' rating on the senior secured
debt while leaving the recovery rating on this debt unchanged at
'1', indicating expectations of a substantial (90%-100%)
recovery in the event of a payment default.

In addition, S&P affirmed the 'B' rating on the senior unsecured
notes while leaving the recovery rating unchanged at '6',
indicating expectations of a negligible (0%-10%) recovery in the
event of a payment default.


THATCHER LAMASTUS: Case Summary & 6 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Thatcher William Lamastus
        C-1 Tivoli Street
        Urb. Paseo de la Fuente
        San Juan, PR 00926

Bankruptcy Case No.: 08-04386

Chapter 11 Petition Date: July 7, 2008

Court: District of Puerto Rico (Old San Juan)

Debtor's Counsel: Charles Alfred Cuprill, Esq.
                  (cacuprill@aol.com)
                  Charles Alfred Cuprill, P.S.C. Law Office
                  356 Calle Fortaleza, 2nd Floor
                  San Juan, PR 00901
                  Tel: (787) 977-0515

Estimated Assets: US$1,000,000 to US$100,000,000

Estimated Debts:  US$1,000,000 to US$100,000,000

Debtor's list of its six largest unsecured creditors:

   Entity                          Nature of Claim  Claim Amount
   ------                          ---------------  ------------
Banco Popular de Puerto Rico                        US$5,950,000
Popular Mortgage
P.O. Box 363534
San Juan, PR 00936-3534

                                   Second Mortgage  US$1,000,000
                                                        Secured:
                                                    US$1,544,000
                                                      Unsecured:
                                                      US$456,000

Firstbank De Puerto Rico           Credit Line         US$24,000
P.O. Box 9146
San Juan, PR 00908-0146

Citi Card - Visa                   Credit Card Charges  US$8,585
P.O. Box 6000
The Lakes, NY 89163

R&G Premier Bank - Visa                                 US$2,430

American Express                   Credit Card Charges  US$2,489

Visa - FIA Card Services           Credit Card Charges    US$610



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

PETROLEOS DE VENEZUELA: Will Pay US$56MM to Paria Gulf Partners
---------------------------------------------------------------
Petroleos de Venezuela S.A. will compensate Eni SpA, China
Petroleum & Chemical Corp., a.k.a. Sinopec, and Ine Paria with
US$56 million for their investments in three off-shore ventures
in the Paria Gulf, LatinPetroleum.com reports.

Petroleos de Venezuela nationalized the firms' Paria Gulf
contracts last year, Dow Jones Newswires relates, citing
unpublished joint-venture contracts.  President Hugo Chavez
ordered Petroleos de Venezuela to convert heavy-oil upgrading
projects in the Orinoco basin and the Paria Gulf ventures into
"mixed companies" and bring them under government control.  
Petroleos de Venezuela agreed to compensate the partners once
the fields become commercially viable.

According to LatinPetroleum.com, the Paria Gulf developments
were initially risk and profit sharing agreements between
Petroleos de Venezuela and mostly foreign firms.  The initial
contracts gave partners control over the exploration projects,
with Petroleos de Venezuela retaining the right for up to a 35%
in each venture once production started.

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.



* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
July 10, 2008
   TURNAROUND MANAGEMENT ASSOCIATION
      Cynthia Jackson of Smith Hulsey & Busey
         University Club, Jacksonville, Florida
            Contact: http://www.turnaround.org/

July 10-13, 2008
   AMERICAN BANKRUPTCY INSTITUTE
      16th Annual Northeast Bankruptcy Conference
         Ocean Edge Resort
            Brewster, Massachussets
               Contact: http://www.abiworld.org/events

July 29, 2008
   TURNAROUND MANAGEMENT ASSOCIATION
      Employment Issues Following Hurricanes & Disasters
         Centre Club, Tampa, Florida
            Contact: http://www.turnaround.org/


July 31 - Aug. 2, 2008
   AMERICAN BANKRUPTCY INSTITUTE
      4th Annual Mid-Atlantic Bankruptcy Workshop
         Hyatt Regency Chesapeake Bay
            Cambridge, Maryland
               Contact: http://www.abiworld.org/

Aug. 16-19, 2008
   AMERICAN BANKRUPTCY INSTITUTE
      13th Annual Southeast Bankruptcy Workshop
         Ritz-Carlton, Amelia Island, Florida
            Contact: http://www.abiworld.org/

Aug. 20-24, 2008
   NATIONAL ASSOCIATION OF BANKRUPTCY JUDGES
      NABT Convention
         Captain Cook, Anchorage, Alaska
            Contact: http://www.nabt.com/


Aug. 26, 2008
   TURNAROUND MANAGEMENT ASSOCIATION
      Do's and Don'ts of Investing in a Turnaround
         Citrus Club, Orlando, Florida
            Contact: http://www.turnaround.org//

Sept. 4-5, 2008
   AMERICAN BANKRUPTCY INSTITUTE
      Complex Financial Restructuring Program
         Four Seasons, Las Vegas, Nevada
            Contact: http://www.abiworld.org/

Sept. 4-6, 2008
   AMERICAN BANKRUPTCY INSTITUTE
      Southwest Bankruptcy Conference
         Four Seasons, Las Vegas, Nevada
            Contact: http://www.abiworld.org/

Sept. 17, 2008
   TURNAROUND MANAGEMENT ASSOCIATION
      Real Estate / Condo Restructuring Panel
         Marriott North, Fort Lauderdale, Florida
            Contact: http://www.turnaround.org//

Sept. 24-26, 2008
   INTERNATIONAL WOMEN'S INSOLVENCY & RESTRUCTURING
CONFEDERATION
      IWIRC 15th Annual Fall Conference
         Scottsdale, Arizona
            Contact: http://www.ncbj.org/

Sept. 24-27, 2008
   NATIONAL CONFERENCE OF BANKRUPTCY JUDGES
      National Conference of Bankruptcy Judges
         Desert Ridge Marriott, Scottsdale, Arizona
            Contact: http://www.iwirc.org/

Sept. 30, 2008
   TURNAROUND MANAGEMENT ASSOCIATION
      Private Equity Panel
         Centre Club, Tampa, Florida
            Contact: http://www.turnaround.org//

Oct. 9, 2008
   TURNAROUND MANAGEMENT ASSOCIATION
      TMA Luncheon - Chapter 11
         University Club, Jacksonville, Florida
            Contact: http://www.turnaround.org/

Oct. 28, 2008
   TURNAROUND MANAGEMENT ASSOCIATION
      State of the Capital Markets
         Citrus Club, Orlando, Florida
            Contact: http://www.turnaround.org//

Oct. 28-31, 2008
   TURNAROUND MANAGEMENT ASSOCIATION
      TMA Annual Convention
         Marriott New Orleans, Louisiana
            Contact: 312-578-6900; http://www.turnaround.org/

Oct. 30 & 31, 2008
   BEARD GROUP & RENAISSANCE AMERICAN CONFERENCES
      Physicians Agreements and Ventures
            Contact: 800-726-2524; 903-595-3800;
               http://www.renaissanceamerican.com/

Nov. 19, 2008
   TURNAROUND MANAGEMENT ASSOCIATION
      Interaction Between Professionals in a
         Restructuring/Bankruptcy
            Bankers Club, Miami, Florida
               Contact: 312-578-6900; http://www.turnaround.org/
  
Dec. 3-5, 2008
   AMERICAN BANKRUPTCY INSTITUTE
      20th Annual Winter Leadership Conference
         Westin La Paloma Resort & Spa
            Tucson, Arizona
               Contact: http://www.abiworld.org/

July 16-19, 2009
   AMERICAN BANKRUPTCY INSTITUTE
      Northeast Bankruptcy Conference
         Mt. Washington Inn
            Bretton Woods, New Hampshire
               Contact: http://www.abiworld.org/

Sept. 10-12, 2009
   AMERICAN BANKRUPTCY INSTITUTE
      17th Annual Southwest Bankruptcy Conference
         Hyatt Regency Lake Tahoe, Incline Village, Nevada
            Contact: http://www.abiworld.org/

Oct. 5-9, 2009
   TURNAROUND MANAGEMENT ASSOCIATION
      TMA Annual Convention
         Marriott Desert Ridge, Phoenix, Arizona
            Contact: 312-578-6900; http://www.turnaround.org/

Dec. 3-5, 2009
   AMERICAN BANKRUPTCY INSTITUTE
      21st Annual Winter Leadership Conference
         La Quinta Resort & Spa, La Quinta, California
            Contact: 1-703-739-0800; http://www.abiworld.org/

Oct. 4-8, 2010
   TURNAROUND MANAGEMENT ASSOCIATION
      TMA Annual Convention
         JW Marriott Grande Lakes, Orlando, Florida
            Contact: http://www.turnaround.org/

BEARD AUDIO CONFERENCES
   2006 BACPA Library  
      Audio Conference Recording
         Contact: 240-629-3300;
            http://www.beardaudioconferences.com

BEARD AUDIO CONFERENCES
   BAPCPA One Year On: Lessons Learned and Outlook
      Audio Conference Recording
         Contact: 240-629-3300;
            http://www.beardaudioconferences.com/

BEARD AUDIO CONFERENCES
   Calpine's Chapter 11 Filing
      Audio Conference Recording
         Contact: 240-629-3300;
            http://www.beardaudioconferences.com/

BEARD AUDIO CONFERENCES
   Carve-Out Agreements for Unsecured Creditors
      Contact: 240-629-3300;
http://www.beardaudioconferences.com/

BEARD AUDIO CONFERENCES
   Changes to Cross-Border Insolvencies
      Audio Conference Recording
         Contact: 240-629-3300;
            http://www.beardaudioconferences.com/

BEARD AUDIO CONFERENCES
   Changing Roles & Responsibilities of Creditors' Committees
      Audio Conference Recording
         Contact: 240-629-3300;
            http://www.beardaudioconferences.com/

BEARD AUDIO CONFERENCES
   Chinas New Enterprise Bankruptcy Law
      Contact: 240-629-3300;
         http://www.beardaudioconferences.com/

BEARD AUDIO CONFERENCES
   Clash of the Titans -- Bankruptcy vs. IP Rights
      Audio Conference Recording
         Contact: 240-629-3300;
            http://www.beardaudioconferences.com/

BEARD AUDIO CONFERENCES
   Coming Changes in Small Business Bankruptcy
      Audio Conference Recording
         Contact: 240-629-3300;
            http://www.beardaudioconferences.com/

BEARD AUDIO CONFERENCES
   Corporate Bankruptcy Bootcamp: A Nuts & Bolts Primer
      for Navigating the Restructuring Process
         Audio Conference Recording
            Contact: 240-629-3300;
               http://www.beardaudioconferences.com

BEARD AUDIO CONFERENCES
   Dana's Chapter 11 Filing
      Audio Conference Recording
         Contact: 240-629-3300;
            http://www.beardaudioconferences.com/

BEARD AUDIO CONFERENCES
   Deepening Insolvency  Widening Controversy: Current Risks,
      Latest Decisions
         Audio Conference Recording
            Contact: 240-629-3300;
               http://www.beardaudioconferences.com/

BEARD AUDIO CONFERENCES
   Diagnosing Problems in Troubled Companies
      Audio Conference Recording
         Contact: 240-629-3300;
            http://www.beardaudioconferences.com/

BEARD AUDIO CONFERENCES
   Distressed Claims Trading
      Audio Conference Recording
         Contact: 240-629-3300;
            http://www.beardaudioconferences.com/

BEARD AUDIO CONFERENCES
   Distressed Market Opportunities
      Audio Conference Recording
         Contact: 240-629-3300;
            http://www.beardaudioconferences.com/

BEARD AUDIO CONFERENCES
   Distressed Real Estate under BAPCPA
      Audio Conference Recording
         Contact: 240-629-3300;
            http://www.beardaudioconferences.com/

BEARD AUDIO CONFERENCES
   Employee Benefits and Executive Compensation under the New
      Code
         Audio Conference Recording
            Contact: 240-629-3300;
               http://www.beardaudioconferences.com/

BEARD AUDIO CONFERENCES
   Equitable Subordination and Recharacterization
      Audio Conference Recording
         Contact: 240-629-3300;
            http://www.beardaudioconferences.com/

BEARD AUDIO CONFERENCES
   Examining the Examiners: Pros and Cons of Using
      Examiners in Chapter 11 Proceedings   
         Audio Conference Recording
            Contact: 240-629-3300;
               http://www.beardaudioconferences.com

BEARD AUDIO CONFERENCES
   Fundamentals of Corporate Bankruptcy and Restructuring
      Audio Conference Recording
         Contact: 240-629-3300;
            http://www.beardaudioconferences.com/

BEARD AUDIO CONFERENCES
   Handling Complex Chapter 11
      Restructuring Issues
         Audio Conference Recording
            Contact: 240-629-3300;
               http://www.beardaudioconferences.com/

BEARD AUDIO CONFERENCES
   Healthcare Bankruptcy Reforms
      Audio Conference Recording
         Contact: 240-629-3300;
            http://www.beardaudioconferences.com/

BEARD AUDIO CONFERENCES
   High-Yield Opportunities in Distressed Investing
      Audio Conference Recording
         Contact: 240-629-3300;
            http://www.beardaudioconferences.com/

BEARD AUDIO CONFERENCES
   Homestead Exemptions under BAPCPA
      Audio Conference Recording
         Contact: 240-629-3300;
            http://www.beardaudioconferences.com/

BEARD AUDIO CONFERENCES
   Hospitals in Crisis: The Insolvency Crisis Plaguing
      Hospitals Across the U.S.
         Audio Conference Recording
            Contact: 240-629-3300;
               http://www.beardaudioconferences.com/

BEARD AUDIO CONFERENCES
   IP Rights In Bankruptcy
      Audio Conference Recording
         Contact: 240-629-3300;
            http://www.beardaudioconferences.com/

BEARD AUDIO CONFERENCES
   KERPs and Bonuses under BAPCPA
      Audio Conference Recording
         Contact: 240-629-3300;
            http://www.beardaudioconferences.com/

BEARD AUDIO CONFERENCES
   New 'Red Flag' Identity Theft Rules
      Audio Conference Recording
         Contact: 240-629-3300;
            http://www.beardaudioconferences.com

BEARD AUDIO CONFERENCES
   Non-Traditional Lenders and the Impact of Loan-to-Own
      Strategies on the Restructuring Process
         Contact: 240-629-3300;
            http://www.beardaudioconferences.com/

BEARD AUDIO CONFERENCES
   Partnerships in Bankruptcy: Unwinding The Deal
      Audio Conference Recording
         Contact: 240-629-3300;
            http://www.beardaudioconferences.com/

BEARD AUDIO CONFERENCES
   Privacy Rights, Protections & Pitfalls in Bankruptcy
      Audio Conference Recording
         Contact: 240-629-3300;
            http://www.beardaudioconferences.com/

BEARD AUDIO CONFERENCES
   Real Estate Bankruptcy
      Audio Conference Recording
         Contact: 240-629-3300;
            http://www.beardaudioconferences.com/

BEARD AUDIO CONFERENCES
   Reverse Mergersthe New IPO?
      Audio Conference Recording
         Contact: 240-629-3300;
            http://www.beardaudioconferences.com/

BEARD AUDIO CONFERENCES
   Second Lien Financings and Intercreditor Agreements
      Audio Conference Recording
         Contact: 240-629-3300;
            http://www.beardaudioconferences.com/

BEARD AUDIO CONFERENCES
   Surviving the Digital Deluge: Best Practices in E-Discovery
      and Records Management for Bankruptcy Practitioners
         and Litigators
            Audio Conference Recording
               Contact: 240-629-3300;
                  http://www.beardaudioconferences.com/

BEARD AUDIO CONFERENCES
   Technology as a Competitive Advantage For Todays Legal
      Processes
      Audio Conference Recording
         Contact: 240-629-3300;
            http://www.beardaudioconferences.com/

BEARD AUDIO CONFERENCES
   The Battle of Green & Red: Effect of Bankruptcy
      on Obligations to Clean Up Contaminated Property
         Contact: 240-629-3300;
            http://www.beardaudioconferences.com/

BEARD AUDIO CONFERENCES
   The Subprime Sector Meltdown:
      Legal Developments and Latest Opportunities
         Contact: 240-629-3300;
            http://www.beardaudioconferences.com/

BEARD AUDIO CONFERENCES
   Twenty-Day Claims
      Audio Conference Recording
         Contact: 240-629-3300;
            http://www.beardaudioconferences.com/

BEARD AUDIO CONFERENCES
   Using Virtual Data Rooms to Expedite Corporate Restructuring
      Audio Conference Recording
         Contact: 240-629-3300;
            http://www.beardaudioconferences.com

BEARD AUDIO CONFERENCES
   Using Virtual Data Rooms to Expedite M&A and Insolvency
      Proceedings
      Audio Conference Recording
          Contact: 240-629-3300;
             http://www.beardaudioconferences.com/

BEARD AUDIO CONFERENCES
   Validating Distressed Security Portfolios: Year-End Price
      Validation and Risk Assessment
         Audio Conference Recording
            Contact: 240-629-3300;
               http://www.beardaudioconferences.com/

BEARD AUDIO CONFERENCES
   When Tenants File -- A Landlord's BAPCPA Survival Guide
      Audio Conference Recording
         Contact: 240-629-3300;
            http://www.beardaudioconferences.com/



                            ***********

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

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

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

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

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

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

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


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