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

             Friday, July 18, 2008, Vol. 9, No. 142

                            Headlines


A R G E N T I N A

AJAL SRL: Proofs of Claim Verification Deadline Is Aug. 20
ARQUINSA SA: Proofs of Claim Verification Is Until Sept. 3
COMPANIA FARMACEUTICA: Claims Verification Deadline Is Sept. 15
DELTA AIR: Incurs US$1 Billion Net Loss in Second Quarter 2008
FORD MOTOR: Moody's Maintains Negative Outlook on Ratings

GMAC LLC: Gets 10-Yr Waiver From FDIC to Dispose of Banking Unit
INDUSTRIAS METALURGICAS: Denies Tocomo Hydro Project Halt
INDUSTRIAS METALURGICAS: Claims Verification Is Until Aug. 6
MANUFACTURAS DEL PLATA: Individual Reports Filing Is on Oct. 16
RESIDENTIAL CAPITAL: FDIC Gives GMAC 10-Yr Waiver on Unit

RESIDENTIAL CAPITAL: S&P Ups Counterparty Credit Rtng to CCC+/C
SAFEGUARD SRL: Concludes Reorganization Process
SOLARES DE TIGRE: Trustee Verifies Claims Until Sept. 18
TODO CONECTOR: Trustee to File Individual Reports on Oct. 28


B A R B A D O S

DIGICEL GROUP: Unit Launches New Services in Barbados


B E R M U D A

BF&M MANAGEMENT: Proofs of Claim Filing Deadline Is July 30
BF&M MANAGEMENT: Sets Final Shareholders Meeting for Aug. 20
HOLIDAY RISK: Proofs of Claim Filing Deadline Is Aug. 18
HOLIDAY RISK: Sets Final Shareholders Meeting for Aug. 25
KODIAK COMPANY: Proofs of Claim Filing Is Until Aug. 15

QUANTA 4000: Proofs of Claim Filing Deadline Is July 30
QUANTA 4000: Sets Final Shareholders Meeting for Aug. 20
SCHRODER UK: Proofs of Claim Filing Deadline Is July 30
SCHRODER UK: Sets Final Shareholders Meeting for Aug. 20
SCHRODER UK LONG/SHORT: Proofs of Claim Filing Is Until July 30

SCHRODER UK LONG/SHORT: Final Shareholders Meeting Is on Aug. 20
SEA CONTAINERS: Employees Have Until August 25 to File Claims
SEA CONTAINERS: SCL Panel Still Not Convinced of Pension Pact OK


B O L I V I A

GRAVETAL BOLIVIA: Moody's Places Ratings Under Review


B R A Z I L

AMR CORP: Incurs US$1.4 Billion Net Loss in Second Quarter 2008
BANCO INDUSVAL: S&P Affirms B+/B Counterparty Credit Rating
BANCO NACIONAL: Okays Banco Bradesco to Transfer PROESCO Funds
BRASIL TELECOM: Merrill Lynch Raises Firm's Shares to Buy
DRI CORP: Secures Financing Initiatives with PNC Bank and BHC

GENERAL MOTORS: To Bolster Liquidity by US$15 Bil. Through 2009
GENERAL MOTORS: S&P Retains Negative Watch After Cost Reductions
GENERAL MOTORS: Posts Record Quarterly Sales in LatAm Region
HEXION SPECIALTY: Huntsman Acquisition Gets EU Conditional Nod
SPECTRUM BRANDS: Fitch's Rtg. Unmoved by Terminated Salton Deal

TELE NORTE: Telemar to Ink BRL4.3 Mil. Loan With Banco do Brasil
UNIAO DE BANCOS: Shareholders OK Upgrade of Share Bonus Issuance


C A Y M A N  I S L A N D S

BAKER STREET: Proofs of Claim Filing Deadline Is July 24
BIG ROOKIE: Proofs of Claim Filing Is Until July 24
KI SPECIALITY: Deadline for Proofs of Claim Filing Is July 24
MEGARA II: Proofs of Claims Filing Is Until July 23
MEGARA II: Sets Final Shareholders Meeting for July 23

PATCHWORK LIMITED: Proofs of Claim Filing Deadline Is July 23
READE STREET: Proofs of Claim Filing Is Until July 24
SCOTTISH ANNUITY: 10-K Filing Prompts S&P to Junk Credit Ratings
UNITED ASIAN: Proofs of Claim Filing Deadline Is July 24


C H I L E

HUNTSMAN CORP: Sale to Hexion Specialty Gets EU Conditional Nod


C O L O M B I A

BANCOLOMBIA: Francisco Botero Quits as Director's Board Member


D O M I N I C A N  R E P U B L I C

BANCO INTERCONTINENTAL: Former Officials to Go to Najayo Prison
BASIC ENERGY: Grey Wolf Investors Snub Merger, Terminate Deal
BASIC ENERGY: Merger Kill Cues Moody's to Confirm Ba3 Ratings


H A I T I

DYNCORP INT'L: Prices US$125MM Offering of 9-1/2% Sr. Sub. Notes
DYNCORP INT'L: S&P Holds 'B' Rtg. on Planned US$445M Notes Issue


J A M A I C A

AIR JAMAICA: Takes Planes Out of Service
DIGICEL GROUP: Yvonne Wilks Will Leave Marketing Director Post
DIGICEL GROUP: Unit Identifies 13 Cellular Towers to Share
NAT'L COMMERCIAL: To Seek Court's Directions on Olint Accounts
NATIONAL COMMERCIAL: Launches New Branch in Port Antonio

OLINT LTD: Authorities Freeze Turks & Caicos Assets After Raid


M E X I C O

MCDERMOTT INTERNATIONAL: Moody's Hikes Ba3 Corp. Family Rating
MEXORO MINERALS: Gets US$500,000 2nd Payment From Paramount Gold
PILGRIM'S PRIDE: Divests Tray-Pack Chicken Biz, Cuts 600 Jobs
SALTON INC: S&P Withdraws Ratings After Proposed Spectrum Deal
UNITED RENTALS: Waives Indices Condition in Dutch Auction Offer


P U E R T O  R I C O

ADELPHIA COMMS: Settles General Dynamics' US$34 Million Claim
NBTY INC: Completes US$371MM Acquisition of Leiner Health Assets
R&G FIN'L: Subsidiaries Get Termination Notice From Federal Home


                         - - - - -


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

AJAL SRL: Proofs of Claim Verification Deadline Is Aug. 20
----------------------------------------------------------
The court-appointed trustee for A.J.A.L. S.R.L.'s bankruptcy
proceeding will be verifying creditors' proofs of claim until
Aug. 20, 2008.

The trustee will present the validated claims in court as
individual reports on Oct. 1, 2008.  The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by A.J.A.L. 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 A.J.A.L.'s
accounting and banking records will be submitted in court on
Nov. 12, 2008.


ARQUINSA SA: Proofs of Claim Verification Is Until Sept. 3
----------------------------------------------------------
The court-appointed trustee for Arquinsa S.A.'s bankruptcy
proceeding will be verifying creditors' proofs of claim until
Sept. 3, 2008.

The trustee will present the validated claims in court as
individual reports on Oct. 15, 2008.  The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Arquinsa 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 Arquinsa's accounting
and banking records will be submitted in court on Nov. 26, 2008.


COMPANIA FARMACEUTICA: Claims Verification Deadline Is Sept. 15
---------------------------------------------------------------
The court-appointed trustee for Compania Farmaceutica Argentina
S.R.L.'s bankruptcy proceeding will be verifying creditors'
proofs of claim until Sept. 15, 2008.

The trustee will present the validated claims in court as
individual reports on Oct. 27, 2008.  The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Compania Farmaceutica and its creditors.

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

A general report that contains an audit of Compania
Farmaceutica's accounting and banking records will be submitted
in court on Dec. 9, 2008.


DELTA AIR: Incurs US$1 Billion Net Loss in Second Quarter 2008
--------------------------------------------------------------
Delta Air Lines Inc.'s net loss for the June 2008 quarter was
US$1.0 billion, or US$2.64 per diluted share, including special
charges of US$1.2 billion.  Excluding special charges, net
income for the quarter ended June 30, 2008, US$137 million, or
US$0.35 per diluted share.  There was more than US$1 billion
year-over-year increase in fuel input costs related to higher
prices.

Delta's merger with Northwest Airlines is targeted to close
during the fourth quarter of 2008.  The company expects about
US$2 billion in annual merger-related synergies by 2012 with
cash integration costs of about US$600 million over three years.

As of June 30, 2008, Delta had US$4.3 billion in unrestricted
liquidity, including US$1 billion available under its revolving
credit facility.

"When faced with the challenge of unprecedented fuel prices,
Delta distinguished itself by reacting quickly and decisively
with strong topline growth, domestic capacity rationalization,
cost initiatives, fuel hedging, and a focus on preserving
liquidity –- while continuing to run a great airline and deliver
exceptional customer service" said Richard Anderson, Delta's
chief executive officer.  "With our talented employees, revenue
momentum, a solid balance sheet, and our game-changing merger
with Northwest, we are well positioned to seize opportunities in
the current environment and strengthen our leadership position
as the global airline of choice."

                 Second Quarter Financial Results

In March, Delta announced it had recalibrated its 2008 business
plan with a focus on preserving liquidity in light of the
significant increase in crude oil prices.  During the June
quarter, as fuel prices continued to rise, the airline
reevaluated its flight schedule, targeting additional reductions
in capacity.  Delta now expects system capacity for the second
half of 2008 to be down 4% compared to 2007, with domestic
capacity down 13% and international capacity up 14%.  The
company is now targeting to remove the equivalent of 100
regional aircraft from the system by the end of the year.
Through aggressive revenue and cost initiatives, including
expansion of its international network and utilization of its
fuel hedge strategy, the company expects to cover about US$3
billion of the estimated US$4 billion raw impact of higher fuel
input costs in 2008.

Delta said it expects to end the year with a liquidity position
of US$3.2 billion, including US$1 billion available under its
revolving credit facility.

"The fact that we mitigated nearly 80% of the impact of higher
fuel input cost this quarter while improving our liquidity is a
testament to both the strength of our action plan and the can-do
spirit of the Delta people," said Edward Bastian, Delta's
president and chief financial officer.  "Unprecedented fuel
prices have created a real crisis in the airline industry, and
Delta has been a leader in responding with quick, decisive
action."

                       Merger with Northwest

In April, Delta announced an agreement to merge with Northwest
Airlines –- creating a formidable, long-term competitor with the
revenue-generating power of a diverse global network combined
with a best-in-class cost structure and solid balance sheet.
The companies are targeting to close the merger by the end of
2008.

Initial synergy estimates for the merger were based on a high-
level approach.  Since that time, the companies have formed
teams to plan the integration of the two airlines and to review
the full benefits of the merger taking a very detailed, bottom-
up approach.  Delta forecasts US$500 million in synergies in
2009, increasing up to the full run-rate of about US$2.0 billion
in annual synergies by 2012.  In addition, estimated cash
integration costs have been refined and are expected to be about
US$600 million over three years.

The companies have achieved several significant milestones on
the path toward closing the merger and completing a seamless
integration of the airlines, including:

   -- reaching an unprecedented pre-merger joint collective
      bargaining agreement between the Delta and Northwest
      units of the Air Line Pilots Association.  This four-year
      agreement through 2012, which includes a process to
      establish an integrated pilot seniority list upon the
      closing of the merger, will give Delta the full ability to
      realize network and fleeting synergies.  Pilots at both
      companies will receive pay raises and an equity stake in
      the combined company.  The tentative agreement is subject
      to ratification by both airlines' pilot groups, which is
      expected by mid-August.

   -- announcing a post-merger organizational structure and the
      executives who will hold key leadership positions in the
      combined airline.

   -- forming 25 joint Delta-Northwest teams to plan integration
      activities and drive synergy achievement.  These teams,
      which cover areas from operations to corporate support,
      are prioritizing integration activities with a focus on
      optimizing synergies and planning for a seamless
      operational and customer transition to the new Delta.

   -- scheduling special meetings of Delta and Northwest
      stockholders to obtain the necessary stockholder
      approvals to close the merger.  The meetings will be held
      on Sept. 25, 2008 in Atlanta (Delta) and New York
      (Northwest).

                         Revenue Momentum

June 2008 quarter revenue improved 10%, or almost US$500
million, year over year.  Based on the most recently available
ATA data, Delta achieved a revenue premium to the industry –-
its consolidated length of haul adjusted passenger unit revenue
(PRASM) was 102% of industry average PRASM (excluding Delta) for
the first five months of the year.  Delta said it reached its
goal of closing the PRASM gap to the industry a year ahead of
schedule.

Revenue from Cargo operations increased 36% year over year due
to significantly improved yields and higher volume, particularly
in international markets.  Other, net revenue grew US$177
million, or 45%, reflecting an increase in passenger fees,
growth in third-party Maintenance Repair and Overhaul (MRO)
business, and additional revenue from the SkyMiles program.

                         Cost Discipline

Delta's operating expenses increased US$2.1 billion, or 46%,
compared to the June 2007 quarter, which reflects special
charges of US$1.3 billion and a more than US$1 billion increase
in costs due to higher fuel prices, partially offset by fuel
hedging gains.  Excluding the special charges described below,
Delta's operating expenses increased 17%, or US$782 million.
Non-operating expenses, excluding special items, declined 40%,
or US$50 million, in the June 2008 quarter due to FAS 133 mark-
to-market on hedges and lower effective interest rates.

Delta's mainline unit cost (CASM5) increased 51% to 15.67 cents
for the June 2008 quarter compared to the prior year period,
reflecting special charges and the significant increase in fuel
costs.  Excluding fuel expense and special items, mainline CASM
increased 1% to 7.03 cents compared to the June 2007 quarter.

                 Special and Reorganization Items

Delta recorded special charges totaling US$1.2 billion in the
June 2008 quarter, including a US$1.1 billion non-cash charge,
net of a US$119 million tax benefit, related to the impairment
of goodwill and other intangibles.  This charge represented the
finalization of the US$6.1 billion impairment charge taken in
the March 2008 quarter and reflects the completion of impairment
testing, including third party valuation procedures.  Additional
special charges included a US$96 million severance charge for
the previously announced voluntary workforce reduction programs
and a US$6 million charge related to facilities restructuring.

In the second quarter of 2007, Delta recorded income of
US$1.3 billion from reorganization and related items, primarily
due to the discharge of claims and liabilities in connection
with its bankruptcy proceedings and the adoption of fresh start
reporting.

                        Liquidity Position

At the end of the June 2008 quarter, Delta had US$3.3 billion in
unrestricted cash, cash equivalents and short-term investments,
including US$671 million of cash collateral deposits received
from counterparties to fuel hedging contracts.  Delta has an
additional US$1 billion available under its revolving credit
facility, resulting in a total unrestricted liquidity of US$4.3
billion.  At June 30, the company is in full compliance with all
financial covenants.

Delta had US$261 million in capital expenditures during the June
2008 quarter, with US$222 million for investments in aircraft,
parts and modifications.

                           Fuel Hedging

During the June 2008 quarter, Delta hedged 49% of its fuel
consumption resulting in an average fuel price of US$3.13 per
gallon.  Delta realized US$313 million in gains on fuel hedge
contracts settled during the quarter.

                   June 2008 Quarter Highlights

During the June 2008 quarter, Delta continued the positive
momentum in its business, demonstrating its ongoing commitment
to maintain strong employee relations and deliver an industry-
leading customer experience.

   -- The National Mediation Board announced that a decisive
      majority –- more than 60% -– of eligible Delta flight
      attendants rejected representation by the Association of
      Flight Attendants/Communication Workers of America,
      enabling Delta to continue a direct relationship with its
      flight attendants;

   -- The U.S. Department of Transportation issued a final order
      granting antitrust immunity for six-way alliance
      activities in trans-Atlantic markets for SkyTeam members
      Air France, Alitalia, CSA Czech Airlines, Delta, KLM Royal
      Dutch Airlines and Northwest Airlines, enabling the
      carriers to offer customers more choice in flight
      schedules, travel times, services and fares;

   -- Delta demonstrated continued commitment to superior
      operational performance by ranking in the top two of its
      competitive set for on-time performance for the last 12
      months and by reducing the number of mishandled bags by
      32% year-over-year in the June quarter.

   -- Achievement of operational performance goals resulted in
      US$10 million in Shared Rewards payments to Delta
      employees during the quarter;

   -- Readers of Executive Travel magazine rated Delta the best
      airline in 2008 for domestic first class service, Crown
      Room Clubs and the SkyMiles program, demonstrating Delta's
      progress toward being the global airline of choice.  They
      also preferred Delta to any other U.S. airline when
      traveling to Africa, the Middle East and Canada;

   -- Delta strengthened its international expansion strategy by
      exercising options for two B777-200LR for delivery in
      early 2010;

   -- Delta received the prestigious 2008 Green Cross for Safety
      Medal from The National Safety Council, which recognizes
      organizations and their leaders for outstanding
      achievements in safety and health, community service and
      responsible citizenship;

   -- Delta enhanced customer check-in options by partnering
      with the Transportation Security Administration to launch
      paperless mobile check-in for domestic travel on Delta
      and Delta Connection flights departing from Delta's main
      terminal at LaGuardia Airport; and

   -- Delta was the first U.S. airline to launch a comprehensive
      in-flight recycling program.  Delta's program has
      successfully diverted 322 tons of waste since June 2007
      and funded an EarthCraft home for Habitat for Humanity,
      one of Delta's Force for Global Good partners.

                       Ancillary Businesses

Delta's ancillary businesses include TechOps, the largest
airline MRO organization in North America, serving more than 100
aviation and airline customers around the world, and DAL Global
Services, which provides general aviation services, training and
technical services, and staffing to airlines including Delta.
The MRO business increased operating revenue more than 60% year
over year in the June quarter and continued to post double-digit
margins.

                         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, among others.

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

The Debtors filed a chapter 11 plan of reorganization and
disclosure statement explaining that plan on Dec. 19, 2007.  On
Jan. 19, 2007, they filed revisions to the plan and disclosure
statement, and submitted further revisions to the plan on
Feb. 2, 2007.  On Feb. 7, 2007, the Court approved the Debtors'
disclosure statement.  In April 25, 2007, the Court confirmed
the Debtors' plan.  That plan became effective on April 30,
2007.  The Court entered a final decree closing 17 cases on
Sept. 26, 2007.  (Delta Air Lines Bankruptcy News; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)


FORD MOTOR: Moody's Maintains Negative Outlook on Ratings
---------------------------------------------------------
Moody's Investors Service said that it is maintaining its
negative outlook on the ratings of Ford Motor Company (Corporate
Family Rating B3) and Ford Motor Credit Company (Senior
Unsecured Rating B1).  The business prospects for the North
American auto industry continue to deteriorate as the economy
weakens and fuel prices are sustained at record high levels.
With product offerings overly weighted in trucks and SUV's, the
Big-3 U.S. auto makers, including Ford, are particularly
vulnerable in this environment.

Moody's ratings and outlook for Ford have considered the
likelihood that the company will not be able to achieve break-
even earnings through 2009, and that the company will continue
to experience a combined automotive operating cash burn for 2008
and 2009 that will exceed US$12 to US$14 billion. The ratings
have also considered that Ford's US$40.6 billion liquidity
position, consisting of US$28.7 billion in cash and US$11.9
billion in availability under committed credit facilities,
provides an incremental level of financial flexibility for the
company during this challenging period.

Moody's will continue to monitor developments in Ford's efforts
to adjust its business profile to contend with the evolving
market conditions.  The rating outlook remains negative.  Absent
developments that indicate that Ford will be able to maintain an
adequate liquidity profile, while implementing restructuring
actions that improve earnings and cash flow and rebuild its long
term product competitiveness, the ratings could be subject to
downgrade.

                      About Ford Motor

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

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


GMAC LLC: Gets 10-Yr Waiver From FDIC to Dispose of Banking Unit
----------------------------------------------------------------
GMAC Financial Services on Wednesday said the Federal Deposit
Insurance Corporation has granted a 10-year extension of GMAC
Bank's current ownership by extending the existing disposition
requirement that was established in connection with the sale of
a majority stake in GMAC.

The Wall Street Journal's Aparajita Saha-Bubna says the FDIC's
decision was a much needed boost for GMAC, which allows the
financing arm of General Motors Corp. to raise funds at
competitive rates.

GM owns a 49% stake in GMAC after selling 51% of GMAC to a group
of investors led by Cerberus Capital Management LP in 2006 for
about US$14 billion.

"We are very pleased with the FDIC's prompt action on our waiver
request," said GMAC Chief Executive Officer Alvaro G. de Molina.
"The long-term extension granted by the FDIC will permit us to
strengthen GMAC Bank, which provides an important source of
funding for mortgage and automotive financing activities.

"This development along with the successful completion of the
global refinancing announced last month helps to enhance
flexibility during this turbulent market environment," said de
Molina.

The FDIC's action includes requirements related to capital
levels at GMAC Bank and the company as a whole.

"It's a positive on the funding side," said Richard Hofmann, an
analyst at independent research firm CreditSights, according to
the Journal.  Mr. Hofmann, the Journal quotes, said GMAC Bank
has "become a more critical funding source for the company as
the credit crisis has heightened," citing that "[a] bank is an
easier way to bring in funding at a very competitive price."

GMAC Bank, according to the Journal, is a so-called industrial-
loan corporation, which are FDIC-supervised lenders that offer a
way for commercial firms to own banks without being regulated by
a federal banking agency.

According to the Journal, when Cerberus bought a 51% GMAC stake,
the FDIC had imposed a moratorium on the approval of banks owned
by nonfinancial companies, like Wal-Mart Stores Inc., to allow
Congress to debate the issue of mixing banking and commerce.
Despite the freeze, the Journal continues, the FDIC granted
Cerberus and GMAC's application because of "the unique
circumstances" of GM's restructuring.  In exchange, GMAC and
Cerberus were to satisfy one of several conditions by November:

   -- sell GMAC Bank;

   -- have the bank cease using FDIC insurance; or

   -- register as a bank holding company.

If none of these terms could be achieved, Cerberus would have to
get an FDIC waiver, the Journal says.

                 FDIC Waiver Good for Rescap Too

According to the Journal, as the credit crunch has made short-
term financing costly and scarce, GMAC Bank's US$15.3 billion in
deposits and US$10.8 billion in Federal Home Loan Bank advances
have become increasingly important sources of stable, low-cost
funding, particularly for Residential Capital LLC, GMAC's
struggling mortgage subsidiary.

Mr. Hofmann, the Journal relates, said the FDIC waiver is
important for ResCap because it has difficulty getting funds on
an unsecured basis.

"Look at GMAC bank, it's loaded up with mortgages," the Journal
quotes Mr. Hofmann as saying.

The Journal says more than two-thirds of GMAC Bank's
US$30.3 billion assets as of the first quarter were made up of
mortgage assets as prime loans, which are made to those with
strong credit.  GMAC Bank accounted for about 30% of ResCap's
funding in 2007, the Journal says.

                          About ResCap

Headquartered in Minneapolis, Minnesota, Residential Capital LLC
-- http://www.rescapholdings.com/-- is the home mortgage unit
of GMAC Financial Services, which is in turn wholly owned by
GMAC
LLC.

                          About GMAC LLC

GMAC LLC -- http://www.gmacfs.com/-- formerly General Motors
Acceptance Corporation, is a global, diversified financial
services company that operates in approximately 40 countries in
automotive finance, real estate finance, insurance and other
commercial businesses.  GMAC was established in 1919 and employs
approximately 26,700 people worldwide.  Cerberus Capital
Management LP bought 51% GMAC LLC stake from General Motors
Corp. on December 2006.  GMAC reported a first quarter 2008
consolidated net loss of US$589 million.

In Latin America, the company has operations in Argentina,
Brazil, Chile, Colombia, Ecuador, Mexico, Venezuela.

GMAC Financial Services is in turn wholly owned by GMAC LLC.

Cerberus Capital Management LP led a group of investors that
bought a 51% stake in GMAC LLC from General Motors Corp. in
December 2006 for $14 billion.

                          *     *     *

As reported by the Troubled Company Reporter-Latin America on
June 7, 2008, Fitch Ratings has downgraded the long-term Issuer
Default Rating of GMAC LLC and related subsidiaries to 'BB-'
from 'BB'.  Fitch has also downgraded GMAC's unsecured long-term
ratings to 'B+' from 'BB-', reflecting the potential for reduced
recovery in a default scenario should the company encumber
assets.   Additionally, Fitch has affirmed the 'B' short-term
ratings.  The Rating Outlook remains Negative.

As reported in the Troubled Company Reporter-Latin America on
April 25, 2008, Moody's Investors Service downgraded GMAC LLC's
senior rating to B2 from B1; the rating remains on review for
further possible downgrade.  This action follows Moody's rating
downgrade of ResCap LLC, GMAC's wholly owned residential
mortgage unit, to Caa1 from B2.


INDUSTRIAS METALURGICAS: Denies Tocomo Hydro Project Halt
---------------------------------------------------------
Business News Americas reports that Ismael E. Jadur,
spokesperson of Industrias Metalurgicas Pescarmona S.A.I.C.y F.,
a.k.a. Impsa, has denied reports that works on a 2.3-gigawatt
Tocoma hydro project on the Caroni river in Venezuela have
stopped.

According to BNamericas, Mr. Jadur admitted that there was a
disagreement between different groups of workers on the
formation of a union, but it has not affected the advancement of
the project.  Mr. Jadur said that the workers weren't affected.
"Neither Impsa nor other companies working on Tocoma have seen
interruptions," the spokesperson insisted.

BNamericas relates that Impsa secured in January 2008 a
US$520 million contract for the design, construction, and
installation of turbines at Tocoma.  The Inter-American
Development Bank is funding about US$750 million of the project
and is prepared to offer more funding for the project.  The
Andean Development Corporation signed loans for a total of
US$900 million for the project.  CVG Edelca is developing the
project, which would cost almost US$3 billion and generate about
12.1 terra watt-hours of power per year.

IDB's Energy Division Chief Leandro Alves also has assured that
the project was progressing well, BNamericas notes.  "There have
been local press reports that the project has slowed down, but
our reports and consultants on the ground are seeing the
opposite.  There are over 4,000 people working on the project,
and from our viewpoint it has not slowed down or stopped at all.
This project has done relatively well for us in terms of
following all of the IDB norms, and we opted and suggested a
second phase of financing.  The suggestion came from the IDB,
and we think it makes sense for both sides," BNamericas quoted
Mr. Alves as saying.

The Venezuelan government hasn't yet requested additional funds
but is in discussions with the IDB, BNamericas states, further
citing Mr. Alves.

Industrias Metalurgicas Pescarmona SA, a.k.a. IMPSA --
http://www.impsa.com.ar/-- is one of the largest worldwide
providers of integrated energy solutions for hydropower and wind
energy projects through the production of capital goods and by
investing in power generation projects.  The company has offices
in Malaysia, China, and Argentina.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 6, 2008, Standard & Poor's Ratings Services assigned its
'B' senior unsecured debt rating to Industrias Metalurgicas
Pescarmona S.A.I.C.y F.'s upcoming issuance of up to
US$65 million short-term bonds with proposed maturity in 2009.
S&P also affirmed its 'B' long-term corporate credit rating on
the company.  S&P said the outlook is stable.

As reported in the Troubled Company Reporter-Latin America on
June 2, 2008, Fitch Ratings assigned a 'B' rating to Industrias
Metalurgicas Pescarmona S.A.I.C. Y F proposed 1-year US$65
million issuance notes due in 2009.  These notes were assigned a
Recovery Rating of 'RR4', which indicates average recovery
prospects in the event of default.  Fitch maintained a foreign
and local currency Issuer Default Rating of 'B'.  Fitch said the
rating outlook is stable.


INDUSTRIAS METALURGICAS: Claims Verification Is Until Aug. 6
------------------------------------------------------------
The court-appointed trustee for Industrias Metalurgicas de Cuyo
S.A.'s bankruptcy proceeding will be verifying creditors' proofs
of claim until Aug. 6, 2008.

The trustee will present the validated claims in court as
individual reports on Sept. 17, 2008.  The National Commercial
Court of First Instance in Mendoza 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 Industrias Metalurgicas 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 Industrias
Metalurgicas' accounting and banking records will be submitted
in court on Oct. 29, 2008.


MANUFACTURAS DEL PLATA: Individual Reports Filing Is on Oct. 16
---------------------------------------------------------------
Juan Carlos Caro, the court-appointed trustee for Manufacturas
del Plata S.R.L.'s bankruptcy proceeding, will present the
validated claims as individual reports in the National
Commercial Court of First Instance in Buenos Aires on
Oct. 16, 2008.

Mr. Caro verifies creditors' proofs of claim until
Sept. 3, 2008.  He will submit to court a general report
containing an audit of Manufacturas del Plata's accounting and
banking records on Dec. 10, 2008.

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

The debtor can be reached at:

         Manufacturas del Plata S.R.L.
         San Jose 1063
         Buenos Aires, Argentina

The trustee can be reached at:

         Juan Carlos Caro
         Florida 470
         Buenos Aires, Argentina


RESIDENTIAL CAPITAL: FDIC Gives GMAC 10-Yr Waiver on Unit
---------------------------------------------------------
GMAC Financial Services on Wednesday said the Federal Deposit
Insurance Corporation has granted a 10-year extension of GMAC
Bank's current ownership by extending the existing disposition
requirement that was established in connection with the sale of
a majority stake in GMAC.

The Wall Street Journal's Aparajita Saha-Bubna says the FDIC's
decision was a much needed boost for GMAC, which allows the
financing arm of General Motors Corp. to raise funds at
competitive rates.

"We are very pleased with the FDIC's prompt action on our waiver
request," said GMAC Chief Executive Officer Alvaro G. de Molina.
"The long-term extension granted by the FDIC will permit us to
strengthen GMAC Bank, which provides an important source of
funding for mortgage and automotive financing activities.

"This development along with the successful completion of the
global refinancing announced last month helps to enhance
flexibility during this turbulent market environment," said de
Molina.

The FDIC's action includes requirements related to capital
levels at GMAC Bank and the company as a whole.

"It's a positive on the funding side," said Richard Hofmann, an
analyst at independent research firm CreditSights, according to
the Journal.  Mr. Hofmann, the Journal quotes, said GMAC Bank
has "become a more critical funding source for the company as
the credit crisis has heightened," citing that "[a] bank is an
easier way to bring in funding at a very competitive price."

GMAC Bank, according to the Journal, is a so-called industrial-
loan corporation, which are FDIC-supervised lenders that offer a
way for commercial firms to own banks without being regulated by
a federal banking agency.

According to the Journal, when Cerberus bought a 51% GMAC stake,
the FDIC had imposed a moratorium on the approval of banks owned
by nonfinancial companies, like Wal-Mart Stores Inc., to allow
Congress to debate the issue of mixing banking and commerce.
Despite the freeze, the Journal continues, the FDIC granted
Cerberus and GMAC's application because of "the unique
circumstances" of GM's restructuring.  In exchange, GMAC and
Cerberus were to satisfy one of several conditions by November:

   -- sell GMAC Bank;

   -- have the bank cease using FDIC insurance; or

   -- register as a bank holding company.

If none of these terms could be achieved, Cerberus would have to
get an FDIC waiver, the Journal says.

                 FDIC Waiver Good for Rescap Too

According to the Journal, as the credit crunch has made short-
term financing costly and scarce, GMAC Bank's US$15.3 billion in
deposits and US$10.8 billion in Federal Home Loan Bank advances
have become increasingly important sources of stable, low-cost
funding, particularly for Residential Capital LLC, GMAC's
struggling mortgage subsidiary.

Mr. Hofmann, the Journal relates, said the FDIC waiver is
important for ResCap because it has difficulty getting funds on
an unsecured basis.

"Look at GMAC bank, it's loaded up with mortgages," the Journal
quotes Mr. Hofmann as saying.

The Journal says more than two-thirds of GMAC Bank's
US$30.3 billion assets as of the first quarter were made up of
mortgage assets as prime loans, which are made to those with
strong credit.  GMAC Bank accounted for about 30% of ResCap's
funding in 2007, the Journal says.

                          About GMAC LLC

GMAC LLC -- http://www.gmacfs.com/-- formerly General Motors
Acceptance Corporation, is a global, diversified financial
services company that operates in approximately 40 countries in
automotive finance, real estate finance, insurance and other
commercial businesses.  GMAC was established in 1919 and employs
approximately 26,700 people worldwide.

GMAC Financial Services is in turn wholly owned by GMAC LLC.

Cerberus Capital Management LP led a group of investors that
bought a 51% stake in GMAC LLC from General Motors Corp. in
December 2006 for US$14 billion.

                          About ResCap

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

                            *     *     *

The TCR-LA related on June 25, 2008, that DBRS downgraded the
Issuer Rating of Residential Capital, LLC to CCC from B(low).
Concurrently, DBRS has downgraded the existing senior unsecured
notes to CC(high) from CCC and the existing subordinate
unsecured notes to CC(high) from CCC(low).  Further, DBRS has
assigned a CCC rating to the newly issued 8.500% Senior Secured
Guaranteed Notes due 2010 and has assigned CC (high) to the
9.625% Junior Secured Guaranteed Notes due 2015.  The trend on
all ratings is Negative.  Finally, the existing ratings have
been removed from Under Review with Negative Implications.

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

As disclosed in the Troubled Company Reporter-Latin America on
June 9, 2008, Fitch Ratings downgraded Residential Capital LLC's
long- and short-term Issuer Default Ratings to 'D' from 'C'
following completion of the company's distressed debt exchange.
Fitch has also removed ResCap from Rating Watch Negative, where
it was originally placed on May 2.


RESIDENTIAL CAPITAL: S&P Ups Counterparty Credit Rtng to CCC+/C
---------------------------------------------------------------
Standard & Poor's Ratings Services has raised its counterparty
credit rating on Residential Capital LLC to 'CCC+/C' from 'SD'
(selective default).  The outlook is negative.

S&P also assigned issue and recovery ratings to Residential
Capital LLC's US$1.67 billion, 8.5% senior secured guaranteed
notes due 2010; its US$4.0 billion, 9.625% junior secured
guaranteed notes due 2015; and its unsecured debt. Residential
Capital LLC's senior  secured notes (second lien) were rated
'CCC+', equal to the long-term counterparty credit rating, with
a recovery rating of '3' indicating expectations for a
meaningful recovery (50%-70%) in the event of default.
Residential Capital LLC's junior secured notes (third lien) were
rated 'CCC-', two notches below the long-term counterparty
credit rating of 'CCC+', with a recovery rating of '6',
indicating expectations for a negligible recovery (0%-10%) in
the event of a default.  Residential Capital LLC's unsecured
debt was rated 'CCC-', two notches below the long-term
counterparty credit rating of 'CCC+', with a recovery rating of
'6', indicating expectations for negligible recovery (0%-10%) in
the event of a default.

"The counterparty credit rating reflects Residential Capital
LLC's still-strong market position in its core residential
mortgage banking businesses, and its geographic diversification.
However, these positives are overwhelmed by developments in the
mortgage business in general and at Residential Capital LLC more
specifically," said Standard & Poor's credit analyst John K.
Bartko, C.P.A.  The company's exposures to high-risk asset types
and its wholesale funding profile resulted in massive valuation
and loss charges, while the wholesale funding presented
additional challenges as the company navigated through a
liquidity crisis.

Indeed, various support efforts on the part of GMAC LLC (B/Watch
Neg/C) and ultimate parents General Motors Corp. (GM; B/Watch
Neg/--) and Cerberus (unrated) are the reasons for Residential
Capital LLC's solvency to date.  Finally, Residential Capital
LLC executed on a debt exchange that S&P considered distressed
and coercive.  S&P therefore lowered its rating on Residential
Capital LLC to 'SD' (selective default) on June 4, 2008, while
the affected debt issuances were lowered to 'D'.  The exchange
highlights the company's precarious position.

Residential Capital LLC operates as a global real estate finance
company, and since inception, its operations have been separate
and distinct from those of its parent company, GMAC.
Residential Capital LLC is an indirect wholly-owned subsidiary
of GMAC which itself is 51% owned by a consortium led by
Cerberus FIM Investors LLC and 49% by GM.  It is a noncaptive
finance company, and although GMAC management has expressed no
intention, S&P assume that GMAC could divest its stake in
Residential Capital LLC.

Residential Capital LLC's debt exchange reduced scheduled debt
maturities and decreased funding costs, affording the company
about two years before sizable unsecured debt matures.  However,
mortgage market turmoil does not appear to be abating and
therefore the outlook is negative.  The company remains highly
vulnerable to issues related to out-of-favor mortgage assets and
to reduced support capacity and/or willingness on the part of
GMAC, GM, and Cerberus.

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


SAFEGUARD SRL: Concludes Reorganization Process
-----------------------------------------------
Safeguard S.R.L. has concluded its reorganization process,
according to data released by Infobae on its Web site.  The
closure came after the National Commercial Court of First
Instance in Buenos Aires homologated the debt plan signed
between the company and its creditors.


SOLARES DE TIGRE: Trustee Verifies Claims Until Sept. 18
--------------------------------------------------------
The court-appointed trustee for Solares de Tigre S.A.'s
reorganization proceeding will be verifying creditors' proofs of
claim until Sept. 18, 2008.

The trustee will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance in Buenos Aires will determine if the verified claims
are admissible, taking into account the trustee's opinion, and
the objections and challenges that will be raised by Solares de
Tigre's and its creditors.

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

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

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

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

The informative assembly will be held on June 3, 2009.
Creditors will vote to ratify the completed settlement plan
during the assembly.

The debtor can be reached at:

              Solares de Tigre S.A.
              Jeronimo Salguero 2835
              Buenos Aires, Argentina


TODO CONECTOR: Trustee to File Individual Reports on Oct. 28
------------------------------------------------------------
Noemi Zulema Vivares, the court-appointed trustee for Todo
Conector y Antena S.R.L.'s bankruptcy proceeding, will present
the validated claims as individual reports in the National
Commercial Court of First Instance in Buenos Aires on
Oct. 28, 2008.

Ms. Vivares verifies creditors' proofs of claim until
Sept. 15, 2008.  She will submit to court a general report
containing an audit of Todo Conector's accounting and banking
records on Dec. 10, 2008.

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

The debtor can be reached at:

                Todo Conector y Antena S.R.L.
                Uruguay 68
                Buenos Aires, Argentina

The debtor can be reached at:

                Noemi Zulema Vivares
                Avenida Cordoba 2626
                Buenos Aires, Argentina



===============
B A R B A D O S
===============

DIGICEL GROUP: Unit Launches New Services in Barbados
-----------------------------------------------------
Cellular-News reports that Digicel Group's unit in Barbados said
it has launched Enhanced Data Rates for GSM Evolution services
on its network.

The system was launched earlier this week, Cellualr-News says,
citing Digicel Barbados' Marketing Chief Robert Chase.  The
system is an upgrade of the GPRS technology, Mr. Chase
explained.

According to Cellular-News, Mr. Chase assured that the new
service doesn't add cost to Digicel's subscribers.

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

                         *     *     *

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


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

BF&M MANAGEMENT: Proofs of Claim Filing Deadline Is July 30
-----------------------------------------------------------
BF&M Management Limited's creditors are given until
July 30, 2008, to prove their claims to Robin J. Mayor, the
company's liquidator, or be excluded from receiving any
distribution or payment.

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

BF&M Management's shareholders agreed on July 14, 2008, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.

The liquidator can be reached at:

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


BF&M MANAGEMENT: Sets Final Shareholders Meeting for Aug. 20
------------------------------------------------------------
BF&M Management Limited will hold its final general meeting on
Aug. 20, 2008, at 9:30 a.m. at Messrs. Conyers Dill & Pearman,
Clarendon House, Church Street, Hamilton, Bermuda.

These matters will be taken up during the meeting:

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

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

   -- passing of a resolution dissolving the company.

BF&M Management's shareholders agreed on July 14, 2008, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.

The liquidator can be reached at:

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


HOLIDAY RISK: Proofs of Claim Filing Deadline Is Aug. 18
--------------------------------------------------------
Holiday Risk Services Limited's creditors are given until
Aug. 18, 2008, to prove their claims to Mike Morrison, 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.

Holiday Risk's shareholder decided on July 7, 2008, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.

The liquidator can be reached at:

         Mike Morrison
         KPMG, Crown House
         4 Par-La-Ville Road
         Hamilton, HM 08, Bermuda


HOLIDAY RISK: Sets Final Shareholders Meeting for Aug. 25
---------------------------------------------------------
Holiday Risk Services Limited will hold its final general
meeting on Aug. 25, 2008, at 10:00 a.m. at KPMG Advisory
Limited, Crown House, 4 Par-la-Ville Road, Hamilton Bermuda.

These matters will be taken up during the meeting:

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

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

   -- passing of a resolution dissolving the company.

Holiday Risk's shareholder decided on July 7, 2008, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.

The liquidator can be reached at:

         Mike Morrison
         KPMG, Crown House
         4 Par-La-Ville Road
         Hamilton, HM 08, Bermuda


KODIAK COMPANY: Proofs of Claim Filing Is Until Aug. 15
-------------------------------------------------------
Kodiak Company Limited's creditors are given until
Aug. 15, 2008, to prove their claims to Peter C.B. Mitchell and
Nigel J.S. Chatterjee, the company's liquidators, or be excluded
from receiving any distribution or payment.

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

Kodiak Company's shareholder decided on July 14, 2008, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.

The liquidator can be reached at:

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


QUANTA 4000: Proofs of Claim Filing Deadline Is July 30
-------------------------------------------------------
Quanta 4000 Holding Company Ltd.'s creditors are given until
July 30, 2008, to prove their claims to Robin J. Mayor, the
company's liquidator, or be excluded from receiving any
distribution or payment.

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

Quanta 4000's shareholders agreed on July 16, 2008, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.

The liquidator can be reached at:

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


QUANTA 4000: Sets Final Shareholders Meeting for Aug. 20
--------------------------------------------------------
Quanta 4000 Holding Company Ltd. will hold its final general
meeting on Aug. 20, 2008, at 9:30 a.m. at Messrs. Conyers Dill &
Pearman, Clarendon House, Church Street, Hamilton, Bermuda.

These matters will be taken up during the meeting:

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

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

   -- passing of a resolution dissolving the company.

Quanta 4000's shareholders agreed on July 16, 2008, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.

The liquidator can be reached at:

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


SCHRODER UK: Proofs of Claim Filing Deadline Is July 30
-------------------------------------------------------
Schroder UK Long/Short Fund, Ltd.'s creditors are given until
July 30, 2008, to prove their claims to Robin J. Mayor, the
company's liquidator, or be excluded from receiving any
distribution or payment.

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

Schroder UK's shareholders agreed on July 11, 2008, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.

The liquidator can be reached at:

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


SCHRODER UK: Sets Final Shareholders Meeting for Aug. 20
--------------------------------------------------------
Schroder UK Long/Short Fund, Ltd., will hold its final general
meeting on Aug. 20, 2008, at 9:30 a.m. at Messrs. Conyers Dill &
Pearman, Clarendon House, Church Street, Hamilton, Bermuda.

These matters will be taken up during the meeting:

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

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

   -- passing of a resolution dissolving the company.

Schroder UK's shareholders agreed on July 11, 2008, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.

The liquidator can be reached at:

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


SCHRODER UK LONG/SHORT: Proofs of Claim Filing Is Until July 30
---------------------------------------------------------------
Schroder UK Long/Short Master Fund, Ltd.'s creditors are given
until July 30, 2008, to prove their claims to Robin J. Mayor,
the company's liquidator, or be excluded from receiving any
distribution or payment.

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

Schroder UK's shareholders agreed on July 11, 2008, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.

The liquidator can be reached at:

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


SCHRODER UK LONG/SHORT: Final Shareholders Meeting Is on Aug. 20
----------------------------------------------------------------
Schroder UK Long/Short Master Fund, Ltd., will hold its final
general meeting on Aug. 20, 2008, at 9:30 a.m. at Messrs.
Conyers Dill & Pearman, Clarendon House, Church Street,
Hamilton, Bermuda.

These matters will be taken up during the meeting:

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

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

   -- passing of a resolution dissolving the company.

Schroder UK's shareholders agreed on July 11, 2008, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.

The liquidator can be reached at:

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


SEA CONTAINERS: Employees Have Until August 25 to File Claims
-------------------------------------------------------------
The Honorable Kevin J. Carey of the U.S. Bankruptcy Court for
the District of Delaware, at Sea Containers Ltd. and its debtor-
affiliates' request, issued a supplemental order establishing
Aug. 25, 2008, as the bar date to file proofs of claim for
current or former employees holding, or wishing to assert claims
against the Debtors.  Judge Carey also approved the proposed
revised Bar Date Notice and Proof of Claim form.

With respect to any employee residing in Great Britain that is
subject to the jurisdiction of the Courts of England & Wales,
the Employee Bar Date will apply solely to these claim
categories:

   (a) claims set forth under Category 5 of Schedule 6 for the
       United Kingdom Insolvency Act 1986, which include certain
       claims for remuneration and holiday remuneration;

   (b) claims set forth under Sections 502(b)(7) and 507(a)(4)
       of the Bankruptcy Code, which include certain claims for
       damages resulting from termination of an employment
       contract, and wages, salaries or commissions, like
       vacation, severance and sick leave pay; and

   (c) any other claims for remuneration, wages, salaries,
       commissions, bonuses, overtime pay, vacation pay, holiday
       pay, severance, deferred compensation, medical or sick
       leave pay, health, insurance, savings and workers'
       compensation benefits, reimbursable expenses, relocation
       expenses, incentive payments, withholdings, deductions,
       and benefits or deferred compensation relating to any
       retirement or pension plan.

Judge Carey ruled that claims based solely on amounts, which are
or may be payable by the Debtors, the Sea Containers 1983
Pension Scheme or the Sea Containers 1990 Pension Scheme as a
result of, or in connection with, current or former
participation in either of the Pension Schemes, will not be
subject to the Employee Bar Date.

The Court noted that (i) pursuant to the original Bar Date
Order, the current order will not apply to the Pension Trustees,
which are subject to the General Bar Date with respect to all
claims under the Pension Schemes, and (ii) an employee need not
assert a claim against the Debtors solely on a participation
interest in the Pension Schemes.

Judge Carey also directed the Debtors to publish the Revised Bar
Date Notice in the English edition of The London Times, at least
once 30 days prior to the Employee Claims Bar Date.

                       About Sea Containers

Based in Hamilton, Bermuda, Sea Containers Ltd. --
http://www.seacontainers.com/-- provides passenger and freight
transport and marine container leasing. Registered in Bermuda,
the company has regional operating offices in London, Genoa, New
York, Rio de Janeiro, Sydney, and Singapore. The company is
owned almost entirely by United States shareholders and its
primary listing is on the New York Stock Exchange (SCRA and
SCRB) since 1974. On Oct. 3, the company's common shares and
senior notes were suspended from trading on the NYSE and NYSE
Arca after the company's failure to file its 2005 annual report
on Form 10-K and its quarterly reports on Form 10-Q during 2006
with the U.S. Securities and Exchange Commission.

Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland. It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.
Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady,
Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at
Young, Conaway, Stargatt & Taylor, represent the Debtors in
their restructuring efforts.

The Official Committee of Unsecured Creditors and the Financial
Members Sub-Committee of the Official Committee of Unsecured
Creditors of Sea Containers Ltd. is represented by William H.
Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris,
Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s
Official Committee of Unsecured Creditors is represented by
attorneys at Willkie Farr & Gallagher LLP.

In its schedules filed with the Court, Sea Containers disclosed
total assets of US$62,400,718 and total liabilities of
US$1,545,384,083. (Sea Containers Bankruptcy News, Issue No. 45;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


SEA CONTAINERS: SCL Panel Still Not Convinced of Pension Pact OK
----------------------------------------------------------------
The Official Committee of Unsecured Creditors in Sea Containers
Ltd. and its debtor-affiliates' Chapter 11 cases tell the
Honorable Kevin J. Carey of the U.S. Bankruptcy Court for the
District of Delaware that it still does not want the pension
scheme agreements approved because the amounts involved are
"unreasonable."

                     Post-Trial Submission:
                  Evidentiary Record Supporting
                   Pension Settlement Approval

A. Debtors

At Judge Carey's direction, the Debtors filed with the Court a
summary of the evidentiary record that supports their request
for approval of the Pension Settlement, specifically evidence
concerning:

    (1) the Debtors' exercise of their business judgment in
        analyzing and settling the Pension Claims;

    (2) the Pension Settlement being more favorable to the
        bankruptcy estates than various reasonable litigation
        outcomes;

    (3) the applicability of English Pensions Law to the Pension
        Claims;

    (4) Sea Containers Limited's present liability to the
        Pension Schemes in amounts exceeding the settlement
        amount;

    (5) the SCL Group's other participating employers' liability
        to the Pension Schemes and SCL's exposure to future
        Financial Support Directions, or FSDs, in connection
        with pension liabilities, defined as debt;

    (6) the liability of other entities in the SCL group under
        future FSDs;

    (7) the extent to which the Pension Settlement enables the
        Debtors to achieve key goals, and obtain important
        benefits that are unavailable absent settlement;

    (8) the reasonableness of Neville Hosegood's calculations of
        the debt under Section 75 of the Pensions Act 1995;

    (9) the Pension Schemes' investment allocation and rates of
        return, and their lack of relevance to the Debtors' buy-
        out liability;

   (10) the reasonableness of the equalization reserve component
        of the Pension Settlement;

   (11) the reasonableness of the administrative claim for
        postpetition expenses incurred by the Pension Schemes;

   (12) the FSDs' non-violation of the automatic stay and the
        Official Committee of Unsecured of Sea Containers
        Limited's awareness of the FSD proceedings; and

   (13) the Pension Settlement not constituting a sub rosa plan
        of reorganization.

The Debtors also pointed out that the Pension Settlement (i) is
the only realistic option for resolving the Pension Claims, (ii)
was the product of vigorous negotiations between the parties
over a lengthy period of time, (iii) facilitates the Debtors'
objectives, and (iv) provides additional protections to the
Debtors.  They insist that rejection of the Pension Settlement
would put the bankruptcy estates at risk of severe consequences.

B. SCSL Committee and Pension Trustees

The Official Committee of Unsecured Creditors of Sea Containers
Services Limited, and the Trustees of the Pension Schemes also
submitted to the Court a summary of the evidentiary record that
supports the Debtors' request for approval of the Pension
Settlement, specifically evidence:

    (1) showing that U.K. has the most significant relationship
        to the valuation of the Pension Schemes' claims;

    (2) concerning applicable U.K. pensions law;

    (3) showing that the Pension Claims are reasonable,
        including grounds that:

        -- the buy-out basis is the appropriate measure for
           valuing pension scheme liabilities, where the
           employer is insolvent;

        -- whether a Section 75 trigger has occurred or not is
           irrelevant to the calculation of the Pension Claims;
           and

        -- the FSDs issued against SCL are based on the Pension
           Schemes' buy-out deficits;

    (4) showing the Pension Schemes' actuary's buy-out
        calculations are reasonable because:

        -- the Pension Schemes' actuary's estimates are
           consistent with the U.K. buy-out market;

        -- the SCSL Committee's expert opined that the
           assumptions underlying the buy-out calculations are
           reasonable;

        -- the buy-out calculations performed by PwC are
           consistent with Mercer Human Resource
           Consulting, Ltd.'s calculations;

        -- the purported "proposal" from Lucida PLC provides no
           basis to conclude that the Pension Settlement is
           unreasonable; and

        -- of the SCL Committee's unsuccessful efforts to
           discredit Mr. Hosegood's calculations;

    (5) showing the 1983 Pension Scheme's December 31, 2005,
        actuarial valuation and December 31, 2006, actuarial
        report do not reflect the scheme's current funding
        position because:

        -- the 1983 Pension Scheme's statutory funding objective
           and technical provisions as reflected in the 2005
           Actuarial Valuation do not take into account the
           Debtors' insolvency; and

        -- the 1983 Pension Scheme's technical provisions as
           reflected in the 2006 Actuarial Report do not take
           into account the Debtors' insolvency;

    (6) concerning the inapplicability of the investment
        allocation and prudent investor rate proposed by the SCL
        Committee's experts:

        -- John Parks of Navigant Consulting, Inc., is not
           qualified to render an opinion concerning the proper
           investment allocation for U.K. pension schemes;

        -- Mr. Parks' proposed investment allocation for the
           Pension Schemes is neither prudent nor reasonable;

        -- the 2007 edition of the Purple Book, a joint
           publication of the Pensions Regulator and the Pension
           Protection Fund, does not provide any support for
           Mr. Parks' proposed investment allocation; and

        -- the prudent investor rate has no relevance to the
           valuation of the Pension Claims; and

    (7) showing that the FSDs were not procured through a
        violation of the automatic stay because:

        -- the Pensions Regulator focused on the Pension
           Schemes' financial condition prior to the Petition
           Date;

        -- issuance of the FSDs does not implicate the automatic
           stay;

        -- the Debtors did not then, and do not now, contend
           that issuance of the FSDs constitutes a violation of
           the automatic stay;

        -- the SCL Committee's awareness of, and involvement in
           the FSD process; and

        -- the SCSL Committee's actions before the Pensions
           Regulator were necessitated by the Debtors'
           opposition to the FSDs.

                SCL Committee Still Not Convinced
                on Pension Settlement's Approval

In its post-trial submission, the SCL Committee argues that the
Settlement Amount assumes a statutory entitlement that does not,
and may not exist, and that it was calculated using improper
methodology by an interested party.

The SCL Committee also asserts, among other things, that:

    (1) the Pension Trustees' contribution demands do not
        trigger a present Section 75 buy-out liability, and are
        invalid in any event;

    (2) Mr. Hosegood did not employ the methodology required by
        Section 75 and Regulation 5(12) of the Occupational
        Pension Schemes Regulations 2008 in calculating the
        buy-out debt;

    (3) even under English law, the Court is not bound by Mr.
        Hosegood's calculation of the Section 75 buy-out debt,
        and is free to consider the work of other actuaries in
        determining the Pension Claims;

    (3) allowing the Pension Schemes to establish the quantum of
        the Pension Claims through their own actuary violates
        U.S. policy;

    (4) where no Section 75 debt has been triggered, and the
        services agreement between SCL and SCSL, does not
        provide an indemnity for a Section 75 debt, the actual
        damage measure -- as calculated on the technical
        provisions or under the prudent investor rule -- is the
        proper measure of the Pension Claims;

    (5) if English law applies, Mr. Hosegood's calculation on
        the technical provisions is the proper measure of the
        scheme deficit;

    (6) Mr. Hosegood's technical provisions calculation assumed
        SCL's insolvency and status as a Chapter 11 debtor-in-
        possession;

    (7) the Pension Claims arise, and may be allowed only
        against Sea Containers Services, Limited;

    (8) the FSDs were procured and issued in violation of the
        automatic stay, and should not be accorded comity;

    (9) the Pension Settlement's treatment of the Pension
        Schemes' expenses as administrative costs is
        unreasonable;

   (10) the Pension Settlement's proposed process for resolving
        the purported equalization claim is inappropriate, and
        the  equalization reserve is unreasonable;

   (11) the Pension Settlement must be rejected as a sub rosa
        plan of reorganization; and

   (12) the Pension Settlement's common-currency term restricts
        the plan, and violates the sub rosa rule.

            SCL Committee Ignores Court's Directions

At the close of the hearing held May 29, 2008, to consider the
approval of the Pension Settlement, parties were instructed to
submit "abbreviated" post-trial submissions, which were to
comprise basically of citations to the record that support the
various points they want to highlight to the Court.

In response to a question by counsel for the Debtors as to
whether the Court envisioned the submissions taking the form of
a "suggested set of findings and conclusions," the Court
clarified that the submissions should "not even [be] that
formal," though "more like that than a legal brief."

The Debtors' counsel, Yosef Riemer, Esq., at Kirkland Ellis LLP,
confirmed to the Court that the parties had obtained a copy of
the post-trial submission in the New Century bankruptcy case to
which the Court referred, and had agreed to submit their post-
trial submissions based on the New Century model on June 27.  No
party objected to Mr. Riemer's statement.

In compliance with the Court's direction, the SCSL Committee and
the Debtors filed their post-trial submissions based on the New
Century  model, relates David B. Stratton, Esq., at Pepper
Hamilton LLP, in Wilmington, Delaware.  The SCL Committee,
however, filed a "formal legal brief that contained substantive
legal arguments and citations to case law," Mr. Stratton says.

Although the SCSL Committee does not believe that the SCL
Committee's post-trial brief will have any impact on the outcome
of the Settlement Request, the extent to which the SCL Committee
has completely and unfairly disregarded the Court's directions
compels the SCSL Committee to bring the matter to Judge Carey's
attention, Mr. Stratton points out.

Mr. Stratton asserts that the SCSL Committee fully recognizes
that the added cost and delay of additional briefing at this
late
stage would very likely outweigh any marginal benefit to the
Court.  Therefore, the SCSL Committee tells the Court, it is not
seeking an opportunity to submit a response to the SCL
Committee's post-trial brief.

"The [SCSL] Committee is confident that the Court will even the
playing field by disregarding arguments to which the [SCSL]
Committee has not had the opportunity to respond," Mr. Stratton
says.

                       About Sea Containers

Based in Hamilton, Bermuda, Sea Containers Ltd. --
http://www.seacontainers.com/-- provides passenger and freight
transport and marine container leasing. Registered in Bermuda,
the company has regional operating offices in London, Genoa, New
York, Rio de Janeiro, Sydney, and Singapore. The company is
owned almost entirely by United States shareholders and its
primary listing is on the New York Stock Exchange (SCRA and
SCRB) since 1974. On Oct. 3, the company's common shares and
senior notes were suspended from trading on the NYSE and NYSE
Arca after the company's failure to file its 2005 annual report
on Form 10-K and its quarterly reports on Form 10-Q during 2006
with the U.S. Securities and Exchange Commission.

Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland. It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.
Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady,
Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at
Young, Conaway, Stargatt & Taylor, represent the Debtors in
their restructuring efforts.

The Official Committee of Unsecured Creditors and the Financial
Members Sub-Committee of the Official Committee of Unsecured
Creditors of Sea Containers Ltd. is represented by William H.
Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris,
Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s
Official Committee of Unsecured Creditors is represented by
attorneys at Willkie Farr & Gallagher LLP.

In its schedules filed with the Court, Sea Containers disclosed
total assets of US$62,400,718 and total liabilities of
US$1,545,384,083. (Sea Containers Bankruptcy News, Issue No. 45;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


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

GRAVETAL BOLIVIA: Moody's Places Ratings Under Review
-----------------------------------------------------
Moody's Investors Service has placed its ratings for Gravetal
Bolivia S.A. under review for possible upgrade.  Ratings
affected include Gravetal 's Caa1 senior unsecured rating and
the A1.bo Bolivian national scale rating on Gravetal's
US$46 million in outstanding senior unsecured notes issued in
Bolivian's domestic debt market.

Moody's action follows the announcement that 99% shares of
Gravetal have been acquired by Sociedad Inversiones de Capital
Inversoja S.A., a company controlled by Monomeros Colombo
Venezolanos S.A (unrated).  Prior to the acquisition, Gravetal
was a small family-owned company.

The review will focus on the impact the acquisition will likely
have on Gravetal's credit profile including potential support
that its parent company might provide to Gravetal.  In addition,
Moody's will evaluate how the ownership change may impact
governance, strategy, operating performance and liquidity of the
company.

Gravetal's Caa1 local currency senior unsecured rating reflects
its global default and loss expectation, while the A1.bo
national scale rating reflects the standing of Gravetal's credit
quality relative to its domestic peers.  Issuers or issues rated
A1.bo present above-average creditworthiness relative to other
domestic issuers.  Moody's National Scale Ratings are intended
as relative measures of creditworthiness among debt issues and
issuers within a country, enabling market participants to better
differentiate relative risks.  NSRs in Bolivia are designated by
the “.bo” suffix.  NSRs differ from global scale ratings in that
they are not globally comparable to the full universe of Moody's
rated entities, but only with other rated entities within the
same country.

                   About Monomeros Colombo

Based in Colombia, Monomeros Colombo Venezolanos S.A, is a
chemical company primarily engaged in the production and
commercialization of fertilizes and industrial chemical
products. With total revenues amounting to USD 364 million
approximately as of December 2007, Monómeros exports roughly 12%
of its total production to Latin America, United States and
Asia. The company is 80% owned by Pequiven, a fully Venezuelan
state-owned company.

                    About Gravetal Bolivia

Gravetal Bolivia S.A. is a soybean processor established in
Bolivia in 2002.  It produces soybean oil and soybean meal,
which is exported to the Andean Community markets, mostly to
Venezuela and Colombia.  With an annual capacity of
approximately 700 thousand metric tons, Gravetal total sales
reached US$127 million as of last twelve months ended in March
2008.



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

AMR CORP: Incurs US$1.4 Billion Net Loss in Second Quarter 2008
-------------------------------------------------------------
AMR Corporation, the parent company of American Airlines, Inc.,
reported a net loss of US$1.4 billion for the second quarter of
2008, or US$5.77 per share.  The current quarter results compare
to a net profit of US$317 million for the second quarter of
2007, or US$1.08 per diluted share.

The second quarter results include special charges as previously
disclosed in AMR's Form 8-K filing with the Securities and
Exchange Commission on July 2.  These include a US$1.1 billion
non-cash accounting charge to write down the value of certain
aircraft and related long-lived assets to their estimated fair
value and a charge of approximately US$55 million of a total
US$70 million expected for severance-related costs resulting
from the company's system-wide capacity reductions in the fourth
quarter of this year.  The remainder of the severance-related
charge is expected to be taken in the third quarter.  Excluding
these special charges, AMR reported a second quarter net loss of
US$284 million, or US$1.13 per share.

Record jet fuel prices contributed significantly to the
company's loss in the second quarter of 2008.  AMR paid US$3.19
per gallon for jet fuel in the second quarter compared to
US$2.09 a gallon in the second quarter of 2007, a 53% increase.
As a result, the company paid US$838 million more for fuel in
the second quarter of 2008 than it would have paid at prevailing
prices from the prior-year period.

"Our company continues to be severely challenged by the fuel
crisis that has afflicted our entire industry, and we expect
these difficulties to continue for the foreseeable future," said
AMR Chairman and CEO Gerard Arpey.  "Clearly, our second quarter
results were disappointing, but I am also pleased with our
efforts as a company to take difficult but necessary steps to
manage through this uncertainty.  While we believe the airline
industry cannot continue in its current form at today's record
fuel prices, we also believe our decisions and hard work by
employees in recent years have better prepared us to face these
challenges.  We remain committed to taking action -- whether
that relates to capacity reductions, revenue enhancements, fleet
changes or other efforts to improve our financial foundation --
as we work to secure our long-term future."

AMR highlighted additional actions it has taken in response to
the ongoing challenges of record fuel prices and a softer
economy.  The company has obtained US$720 million in new
financing through a number of transactions, including the sale
of certain aircraft that will remain in the company's fleet
through a lease agreement, and through newly issued mortgage
debt that is secured by aircraft.  Of the new financing,
approximately US$500 million was received in July and will be
recorded in the company's cash balance in the third quarter of
2008.

In addition, AMR has decided to retire all 34 of its A300
aircraft by the end of 2009, compared to the previous retirement
schedule that extended through 2012.  In 2008, AMR will retire
30 MD-80s, 10 A300s and 26 Saab turbo-prop aircraft, and will
retire or remove from service 37 regional jets.  The remaining
A300s will be retired in 2009, which is expected to result in
capacity reductions next year. A s it begins to replace its MD-
80 fleet, the company continues to expect to take delivery of 70
more-fuel-efficient 737-800 aircraft in 2009 and 2010.

Given the current industry environment, AMR has decided to place
on hold its planned divestiture of American Eagle, its regional
affiliate, until industry conditions are more stable and
favorable.  AMR continues to believe that a divestiture makes
sense in the long term for AMR, American, American Eagle and
their stakeholders but AMR also believes that a divestiture is
not sensible amid current conditions.

                     Operational Performance

AMR reported second quarter consolidated revenues of
approximately US$6.2 billion, an increase of 5.1% year over
year.  American's mainline passenger revenue per available seat
mile (unit revenue) increased by 7.0% in the second quarter
compared to the year-ago quarter.  Mainline capacity, or total
available seat miles, in the second quarter decreased by 2.2%
compared to the same period in 2007.

American's mainline load factor -– or the percentage of total
seats filled -- was 82.5% during the second quarter, compared to
83.6% in the second quarter of 2007.  American's second-quarter
yield, which represents average fares paid, increased 8.5%
compared to the second quarter of 2007, its 13th consecutive
quarter of year-over-year yield increases.

American's mainline cost per available seat mile (unit cost),
excluding special items, increased 19.3% in the second quarter
compared to the same period in 2007, largely due to higher fuel
expense.  Excluding fuel and special items, mainline unit costs
in the second quarter of 2008 increased by 5.1% year over year.

                       Balance Sheet Update

AMR ended the second quarter with US$5.5 billion in cash and
short-term investments, including a restricted balance of US$434
million. The second quarter 2008 cash balance includes US$220
million received through financings involving aircraft mortgage
and sale-leaseback transactions.  The US$500 million in
additional aircraft financing was received after the second
quarter ended and will be applied to AMR's third quarter 2008
cash balance.

AMR continues to expect the previously announced sale of
American Beacon Advisors, Inc., valued at US$480 million in
total consideration, to be completed in the third quarter of
2008.  At the end of the second quarter of 2007 AMR had US$6.4
billion in cash and short-term investments, including a
restricted balance of
US$470 million.

AMR's total debt, which it defines as the aggregate of its long-
term debt, capital lease obligations, the principal amount of
airport facility tax-exempt bonds, and the present value of
aircraft operating lease obligations, was US$15.2 billion at the
end of the second quarter of 2008, compared to US$17.3 billion
at the end of the second quarter of 2007.

AMR's net debt, which it defines as total debt less unrestricted
cash and short-term investments, was US$10.1 billion at the end
of the second quarter of 2008, compared to US$11.4 billion at
the end of the second quarter of 2007.

As of July 15, AMR had contributed US$78 million to its
employees' defined benefit pension plans in 2008.  AMR has
contributed more than US$2 billion to its employee defined
benefit pension plans since the beginning of 2002.

                             Guidance

A. Mainline and Consolidated Capacity

Following its capacity reduction announcement in May, AMR
expects its full-year mainline capacity to decrease by 3.4% in
2008 compared to 2007, with a 5.7% reduction in domestic
capacity and a 0.7% increase in international capacity compared
to 2007 levels.  On a consolidated basis, AMR expects full-year
capacity to decrease by 3.7% in 2008 compared to 2007.

AMR expects mainline capacity in the third quarter of 2008 to
decrease by 2.7% year over year. It expects consolidated
capacity to decrease by 3.0% in the third quarter of 2008
compared to the prior-year period.

AMR has said on May 21, 2008, that it expects system-wide
capacity to decline by 7.0% to 8.0% in the fourth quarter of
2008 compared to fourth quarter 2007 levels, with fourth quarter
mainline domestic capacity expected to decline by 11.0% to 12.0%
and fourth quarter regional affiliate capacity expected to
decline by 10.0% to 11.0% compared to the same period in 2007.

Beyond the expected 2009 capacity reductions resulting from the
retirement of the A300s, given current fuel price and economic
trends, the company expects to make additional capacity
reductions in 2009.

B. Fuel Expense and Hedging

While the cost of jet fuel remains very volatile, AMR is
planning for an average system price of US$3.81 per gallon in
the third quarter of 2008 and US$3.42 a gallon for all of 2008.
AMR has 35.0% of its anticipated third quarter 2008 fuel
consumption capped at an average crude equivalent of US$95 per
barrel (jet fuel equivalent of US$2.92 per gallon), with 34.0%
of its anticipated full-year consumption capped at an average
crude equivalent of US$82 per barrel (jet fuel equivalent of
US$2.60 per gallon).  Consolidated consumption for the third
quarter is expected to be 772 million gallons of jet fuel.

C. Mainline and Consolidated Unit Costs

For the third quarter of 2008, mainline unit costs are expected
to increase 26.1% compared to the third quarter of 2007, while
third quarter consolidated unit costs are expected to increase
25.7% compared to the third quarter of 2007.

In the third quarter of 2008, mainline unit costs excluding fuel
are expected to increase 3.6% year over year while consolidated
unit costs excluding fuel are expected to increase 3.9% from the
third quarter of 2007.

Full-year mainline unit costs are expected to increase 21.5% in
2008 compared to 2007, while full-year consolidated unit costs
are expected to increase 21.2% in 2008 compared to 2007.

AMR expects mainline unit costs excluding fuel to be 4.1% higher
in 2008 versus 2007, while 2008 consolidated unit costs
excluding fuel are expected to increase 4.6% year over year.

A full-text copy of the company's second quarter 2008 results is
available for free at http://ResearchArchives.com/t/s?2f8c

                         About AMR Corp.

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

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

                          *     *     *

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

On July 15, 2008, the TCR said that Moody's Investors Service
placed the debt ratings of AMR Corp. and its subsidiaries under
review for possible downgrade.  The company has an outstanding
B2 corporate family rating.  The review includes the ratings for
certain equipment trust certificates and enhanced equipment
Trust Certificates of American Airlines, Inc.

                 Likely Bankruptcy Filing This Year

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

AMR has said report of possible bankruptcy filing is unfounded.

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

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

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

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


BANCO INDUSVAL: S&P Affirms B+/B Counterparty Credit Rating
-----------------------------------------------------------
Standard & Poor's Ratings Services has affirmed its 'B+/B'
counterparty credit rating on Banco Indusval S.A.  The outlook
is revised to positive from stable.

“The ratings reflect the intrinsic vulnerabilities of a small
bank operating in Brazil with the challenge of lowering costs
and diversifying its funding sources, growing its client base,
and gaining scale to mitigate the pressure on its profitability,
as competition remains fierce and is likely to reduce spreads.
These credit risk factors are tempered by Indusval's good
position as a niche bank in the middle-market segment, relying
on the agility of its decision making and adequate business
knowledge; its good track record in growing loans while
maintaining credit quality, which is supported by the bank's
expertise in using receivables as collateral; and the bank's
strong liquidity position and revenue generation,” said S&P's
credit analyst Marcelo Peixoto.

Strong competition from other players in the Brazilian market is
compressing margins and is a major challenge for Banco Indusval.
The bank's main source of funds is its deposit base (41.8% of
total liabilities), and the bank has been able to grow its
funding base in tandem with its credit expansion.  Although its
deposit base grew at a compounded annual growth rate of 46.1%
for 2004-2007, the bank faces the challenge to further diversify
its deposit and client base while maintaining good liquidity.
The bank is also trying to broaden its range of funding
alternatives, such as loans from multilateral financial
institutions like the International Finance Corp. and
Inter-American Development Bank, the possibility of cross-border
fixed-note issues, and securitizations.  Although the bank has
good revenue generation and a strong capitalization ratio, given
the IPO in July 2007 to support expected growth, a more
diversified funding base could help reduce its cost of funds.

The positive outlook reflects the bank's capacity to report
strong asset growth and sustain its competitive position in the
middle-market segment, while maintaining solid asset quality and
profitability at historical levels.  It also incorporates the
bank's efforts to maintain a good liquidity ratio.  A positive
rating action would depend on the bank proving its ability to
maintain asset quality in a less benign economic environment in
the medium term, and its success in increasing significantly its
market position despite competition, while it continues
diversifying its loan and funding base.  S&P could revise the
outlook to stable or lower the ratings if there is significant
deterioration of Banco Indusval's asset quality, liquidity,
funding, or capitalization.  The bank had BRL2.8 billion
(US$1.7 billion) of total assets as of March 2008.

Headquarterered in Sao Paulo, Brazil, Banco Indusval S.A. --
http://www.indusval.com.br-- holds commercial and foreign
exchange portfolios and operates other transactions related to
security brokers.  The bank focuses on credit products and
personalized services tailored to the financial needs of the
middle market.  Its credit operations are offered in foreign or
local currency.  Structured payment operations are offered to
the agribusiness sector.  The bank operates in four important
Brazilian centers in Campinas, Curitiba, Belo Horizonte and
Goiania.


BANCO NACIONAL: Okays Banco Bradesco to Transfer PROESCO Funds
--------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social SA, a.k.a.
BNDES, has authorized Banco Bradesco S.A to be the Accredited
Financial Institution, under the Financial Support Facility for
Energy Efficiency Projects, or PROESCO.  The program was
designed by BNDES in 2006 to promote greater efficiency to the
Brazilian energy sector.

The approval makes Bradesco a partner for financing operations
for this loan facility, making it the accredited financial
institution for funds intended to be assigned to the program.
So far, only Banco do Brasil and Itau had adhered to the
partnership with BNDES, to transfer the funds intended to the
beneficiaries of PROESCO.

PROESCO provides support to energy saving projects and is
intended to state-run or private companies holding equipment and
procedure deployment projects focused on greater energy
efficiency.

As the main Brazilian economic development agency, funding
several economic sectors, BNDES' mission includes boosting
energy efficiency in Brazil.

PROESCO'S project financing line is divided into three types:

          -- Risk shared by BNDES and accredited financial
             institutions;

          -- indirect operation, where the accredited financial
             institution is fully liable to bear the financial
             amount and the credit risks; and

          -- direct operation (performed directly with BNDES).

In shared risk operations, BNDES may bear up to 80% of the
operation's risk, and the accredited financial institutions must
bear at least 20%.  In this case, the beneficiary will be
charged a special spread due to risk assumption, of 3% p.a.  The
accredited financial institutions must require as a collateral
for the financing arrangements the guaranty from the majority
shareholders of the Empresa de Servicos de Conservacao de
Energia (ESCO) and the pledge of its credit rights arising from
ESCO's service agreement with its client.

This facility is under contract with Banco Bradesco to repay the
funds provided for the development of the project, as BNDES does
not have a network of agencies serving all states.

PROESCO funds studies, works and equipment with six-year
maturities, including the grace period of up to two years at the
cost of Long-Term Interest Rate plus a spread percentage.

                      About Banco Bradesco

Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. (NYSE:
BBD) -- http://www.bradesco.com.br/-- prides itself on serving
low-and medium-income individuals in Brazil since the 1960s.
Bradesco is Brazil's largest private bank, with more than 3,000
banking branches, and also a leader in insurance and private
pension management.  Bradesco has branches throughout Brazil as
well as one in New York, and Japan.  Bradesco offers Internet
banking, insurance, pension plans, annuities, credit card
services (including football-club affinity cards for the soccer-
mad population), and Internet access for customers.  The bank
also provides personal and commercial loans, along with leasing
services.

                           About BNDES

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

                        *     *     *

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


BRASIL TELECOM: Merrill Lynch Raises Firm's Shares to Buy
---------------------------------------------------------
Kevin Crowley at Bloomberg News reports that Merrill Lynch & Co.
analysts have raised its recommendation on Brasil Telecom
Participacoes SA's shares to "buy" from "neutral" on speculation
that its proposed merger with Tele Norte Leste Participacoes
S.A. will proceed.

As reported in the Troubled Company Reporter-Latin America on
June 17, 2008, Brazilian telecommunications regulator Anatel
authorized the revision of the telecoms law that will allow Tele
Norte to proceed with its acquisition of Brasil Telecom.  Tele
Norte closed a deal to acquire Brasil Telecom for
BRL5.86 billion.  Current legislation doesn't allow a fixed line
telecommunications firm to purchase another telecom to avoid
creating a conflict with existing concession licenses.

Bloomberg relates that Sao Paulo analyst Mauricio Fernandes
wrote in a note to clients, "The Brazilian telco regulator
Anatel has already published for public hearing the regulatory
changes necessary to approve the acquisition and seems unlikely
to call it off."  Interests of the two firms' shareholders "seem
aligned", Mr. Fernandes added.

Headquartered in Brasilia, Brazil, Brasil Telecom Participacoes
SA -- http://www.brasiltelecom.com.br-- is a holding company
involved in the telecommunications sector.  Its main activity is
the management of Brasil Telecom SA (BrT), which operates a
local fixed-line telephone in Brazil.  BrT also provides data
and voice, broadband and Internet services.  It also owns Nova
Tarrafa Participacoes Ltda and Nova Tarrafa Inc., which provide
Internet services.

                         *     *     *

In April 2008, Moody's Investors Service placed Brasil Telecom
Participacoes S.A.'s Ba1 rating on review for possible upgrade
after the announced acquisition by Tele Norte Leste
Participacoes S.A


DRI CORP: Secures Financing Initiatives with PNC Bank and BHC
-------------------------------------------------------------
DRI Corp. secured new U.S. loan agreements with PNC Bank,
National Association and BHC Interim Funding III, L.P., and
expanded its existing European banking relationship with Svenska
Handelsbanken AB.

“We believe that our three new financing initiatives provide an
appropriate working capital foundation for our 2008 to 2010
business plans as currently positioned, and enhance the
Company's ability to better manage cash resources between the
U.S. and Europe,” David L. Turney, the company's Chairman,
President, and Chief Executive Officer, said.  “The agreements
have been reached and substantially executed, and we expect
final closing and funding actions to occur; the details of each
of these credit facilities will be fully disclosed in separate
Form 8-K filings.”

                     New U.S. Senior Lender

The company entered into a revolving credit agreement with PNC
Bank, National Association on June 30, 2008.  The three-year
agreement -- a revolving credit line of up to US$8 million
subject to formula-derived availability based on inventory and
accounts receivable -- replaces the company's present
US$6 million U.S. senior lender relationship with Laurus Master
Fund, Ltd., which expired June 30, 2008.  This credit facility
includes performance covenants and other provisions related to
payment and pre-payment, generally considered by management to
be usual and customary for this type of financing.

PNC Bank, National Association is a subsidiary of The PNC
Financial Services Group, Inc., one of the nation's largest
diversified financial services organizations providing retail
and business banking; specialized services for corporations and
government entities, including corporate banking, real estate
finance and asset-based lending; wealth management; asset
management; and global fund services.

                     New Subordinated Lender

The Company entered into a subordinated loan agreement with
Brooks, Houghton & Company, Inc.'s BHC Interim Funding III, L.P.
on June 30, 2008.  The three-year, US$5 million loan under this
agreement provides additional working capital to fund the growth
in both the company's domestic and international operations over
the next three years according to present business plans.  In
connection with the execution of this loan agreement, the
company granted BHC a five-year warrant to purchase up to
350,000 shares of TBUS Common Stock at a 5% premium to market
(five-day volume weighted average).  This credit facility
includes performance covenants and other provisions related to
payment and pre-payment, generally considered by management to
be usual and customary for this type of financing.

BHC Interim Funding, L.P. is the investment arm of Brooks,
Houghton & Company, Inc. and specializes in making investments
in middle market companies.  The firm typically provides
mezzanine and bridge capital for acquisitions or
recapitalizations; to finance profitable growth or expansion; to
augment working capital; and to enable time sensitive
opportunities. It primarily invests in manufacturing,
distribution, and business services companies based in United
States. Brooks Houghton & Company was formed in 1989 and is
based in New York City, with an additional office at Stamford,
Connecticut.

             Existing European Credit Facilities

The company has reached agreement with Svenska Handelsbanken AB,
its existing banking relationship in Gothenburg, Sweden, to
expand existing European working capital credit facilities,
subject to formula-derived availability based partially on
inventory and accounts receivable for a revolver component that,
in combination with term loans, brings the facility maximum to a
total of approximately US$6.4 million as compared to the prior
similar line maximum of approximately US$3.2 million.  While the
company's original European banking relationship was not at the
end of term, DRI management believed it advisable to update the
relationship at the same time that the U.S. side of the
company's debt structure was addressed to provide additional
working capital to meet the expected growth of the company's
international operations.

                 FY 2008 Earnings Forecast Update

“Regarding the company's previously announced fiscal year 2008
guidance of US$68 million to US$70 million in revenue and
earnings per diluted share of 14 cents to 17 cents, management
is comfortable projecting earnings per share to be at the upper
end of that range and expects the second quarter 2008 results to
be consistent with such outlook,” Mr. Turney said.

                        About DRI Corp.

Headquartered in Dallas, Texas, DRI Corporation (Nasdaq: TBUS)
-- http://www.digrec.com/-- through its business units and
wholly-owned subsidiaries, manufactures, sells, and services
information technology and surveillance technology products
either directly or through manufacturers' representatives or
distributors.  Customers include municipalities, regional
transportation districts, federal, state and local departments
of transportation, and bus manufacturers.  The company has a
subsidiary in Brazil.

                      Going Concern Doubt

PricewaterhouseCoopers LLP, in Raleigh, North Carolina,
expressed substantial doubt about DRI Corp.'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 reported that the company has
insufficient cash resources to make payment in full on the
outstanding balance of the domestic line of credit which matures
June 30, 2008.

The company has executed term sheets with potential lenders for
the refinancing of the domestic line of credit and such lenders
are in the process of performing due diligence reviews of the
company's financial records and operations.


GENERAL MOTORS: To Bolster Liquidity by US$15 Bil. Through 2009
---------------------------------------------------------------
General Motors Corp. said it is taking further steps to adapt
its business to rapidly changing market conditions, marked by
the weak U.S. economy, record high fuel prices, shifts in
consumer vehicle preferences, and the lowest U.S. industry sales
volumes in a decade.

“We are responding aggressively to the challenges of today's
U.S. auto market,” said GM Chairman and CEO, G. Richard Wagner,
Jr.  “We will continue to take the steps necessary to align our
business structure with the lower vehicle sales volumes and
shifts in sales mix.  We remain committed to bringing to market
great products that target changing consumer preferences for
more fuel-efficient vehicles.”  Mr. Wagoner noted that 11 of
GM's 13 most recent major U.S. product launches, and 18 of its
next 19 launches, are cars and crossovers, which are key growth
areas.

“Today's actions, combined with those of the past several years,
position us not only to survive this tough period in the U.S.,
but to come out of it as a lean, strong and successful company,”
Mr. Wagoner said.

For liquidity planning purposes, GM is using assumptions of U.S.
light vehicle industry volumes of 14.0 million units in 2008-
2009 which are significantly below trend.  Other planning
assumptions include lower U.S. share of approximately 21 percent
and continued elevated average oil price estimates ranging from
US$130 to US$150 per barrel by 2009. Based on those assumptions,
GM is taking actions to further reduce structural cost, and
generate cash, with the goal of maximizing liquidity.

            GM Has Ample Liquidity to Fund 2008 Costs

At the end of the first quarter 2008, GM had liquidity of
US$23.9 billion, with access to U.S. credit facilities of an
additional US$7 billion.  While the company has ample liquidity
to meet its 2008 funding requirements, it is taking additional
measures to bolster liquidity to protect against a prolonged
U.S. downturn. The actions include a combination of operating
and related actions, as well as asset sales and capital market
activities.  The cumulative impact on cash through 2009 is
projected to be approximately US$15 billion:

                Cash Impact Through Year End 2009

   Operating and Other Actions           ~US$10 billion
   Asset sales                           ~US$2-4 billion
   Capital markets activities            ~US$2-3 billion
                                       -----------------
                     Total               ~US$15 billion

         US$10 Bil. in Cash Improvements By End of 2009

Through a number of internal operating changes and other
actions, GM expects to generate approximately US$10 billion of
cumulative cash improvements by the end of 2009, versus original
plans.

Estimated
Reductions    Internal Operating Changes and Other Actions
----------    --------------------------------------------
US$1.5 bil.   GM plans further salaried headcount reductions in
in benefits   the U.S. and Canada in the 2008 calendar year,
reduction in  which will be achieved through normal attrition,
2009          early retirements, mutual separation programs
               and other separation tools.  In addition, health
               care coverage for U.S. salaried retirees over 65
               will be eliminated, effective Jan. 1, 2009.
               Affected retirees and surviving spouses will
               receive a pension increase from GM's over funded
               U.S. salaried plan to help offset costs of
               Medicare and supplemental coverage.  And there
               will be no new base compensation increases for
               U.S. and Canadian salaried employees for the
               remainder of 2008 and 2009.

               Beyond these moves, which also impact GM
               executives, additional actions are being taken.
               There will be no annual discretionary cash
               bonuses for the company's executive group in
               2008.  With the elimination of the annual cash
               bonus, combined with GM's long-term incentives
               which are driven by GM stock price performance
               to assure alignment with its stockholders,
               GM's executive group will have a significant
               reduction in their cash compensation opportunity
               for 2008.  For the company's top executive
               officers, it represents a reduction in their cash
               compensation opportunity of 75 to 84 percent.

               These benefit changes, salaried headcount
               reductions and other related savings will result
               in an estimated reduction in cash costs of more
               than 20 percent, or US$1.5 billion in 2009.

US$2.5 bil.   Additional structural cost reductions of
structural    approximately US$2.5 billion are expected in
cost cuts     GM North America.  The reductions will be
in 2009;      partially achieved through further adjustments
US$6-7 bil.   in truck capacity and related component,
by 2010       stamping and powertrain capacity in response to
               lower  U.S. industry volume.  Truck capacity is
               expected to be reduced by 300,000 units by the
               end of 2009, half of which is from acceleration
               of prior announced actions, and half from new
               capacity actions.

               In addition, GM will reduce and consolidate sales
               and marketing budgets, with a focus on protecting
               launch products and brand advertising.
               Engineering spending in 2008 and 2009 will be
               held at 2006-2007 levels, substantially lower
               than original plans.  These operating actions,
               combined with the benefits of the 2007 GM-UAW
               labor agreement, are targeted to reduce North
               American structural cost from US$33.2 billion in
               2007 to approximately US$26-US$27 billion in
               2010, a reduction of US$6-7 billion.

US$1.5 bil.   GM is revising its capital spending plan and
Capital       reducing approximately US$1.5 billion in
Expenditure   expenditures versus prior plans.  Capital
Reductions    expenditures are now estimated to total
               US$7 billion in 2009 versus prior plans of
               US$8.5 billion.  The figures do not include the
               US$1 billion in capital spending planned in both
               2008 and 2009 in China, which is self-funded by
               the GM joint ventures, to support growth in that
               market. A major part of the reductions is related
               to the delay of the next generation large pickup
               and SUV program, as well as V-8 engine
               development and associated capacity.

               Spending for non-product programs will also be
               significantly reduced, while powertrain spending
               will be increased to support the development of
               alternative propulsion and fuel economy
               technologies and small displacement engines.  The
               revised 2009 capital spending plan is higher than
               the average capital expenditures in 2005-2007,
               excluding large pickup and SUV-related spending.
               Excluding China, GM expects capital expenditures
               to run in the US$7-7.5 billion range beyond 2009.

US$2.0 bil.   GM said aggressive actions are being taken to
working cap   improve working capital by approximately
improvements  US$2 billion in North America and Europe,
               primarily related to the reduction of raw
               material, work-in-progress and finished goods
               inventory levels as well as lean inventory
               practices at parts warehouses.

US$1.7 bil.   GM will defer approximately US$1.7 billion of
VEBA payment  payments that had been scheduled to be made to a
deferrals     temporary asset account over the balance of 2008
               and 2009 for the establishment of the new UAW
               VEBA.

US$0.8 bil.   The GM Board of Directors has decided to suspend
Dividend      future dividends on common stock, effective
Suspension    immediately, which is expected to improve
               liquidity by approximately US$800 million through
               2009.

       Up to US$7 Bil. in Asset Sales, Financing Activities

In addition to the operating changes and other actions, GM
expects to raise additional liquidity of US$4-US$7 billion
through asset sales and financing activities.

Target
Amount        Details on Company's Plan
------        -------------------------
US$2-4 bil.  GM is undertaking a broad global assessment of its
in sales     assets for possible sale or monetization, which is
              expected to generate approximately US$2-US$4 bil.
              of additional liquidity.  The company believes
              there is significant liquidity potential from
              asset sales, without impacting the strategic
              direction of the company.  Outside advisors are
              currently engaged in evaluating alternatives.
              A strategic analysis of the Hummer brand is
              underway, and GM is continuing to focus on profit
              improvement initiatives across all remaining GM
              brands.

US$2-3 bil.  GM will continue to opportunistically access
in           global markets to raise additional liquidity. The
financing    company is initially targeting at least
              US$2-3 billion of financing.  The company has
              gross unencumbered assets of over US$20 billion,
              which could support a significant secured debt
              offering, or multiple offerings, that would far
              exceed the initial target. Examples of such assets
              include stock of foreign subsidiaries, brands,
              stake in GMAC, and real estate.

GM said the outlined actions comprehend the anticipated impact
of second quarter results, which the company plans to announce
in the near future.  GM anticipates it will report a significant
second quarter loss, driven in part by the previously disclosed
negative impact of the American Axle and local union strikes in
North America, as well as the continued weakness in the U.S.
auto market and adverse vehicle segment mix.

In addition, the company expects to record significant charges
or expenses related to its previously announced hourly attrition
program in the U.S., the recently announced North American truck
capacity actions, valuation of GMAC stock, lease assets, Delphi
recoveries, the American Axle settlement, the Canadian labor
contract, and others.

GM is highly confident that the initiatives, in conjunction with
the current cash position and its US$4-5 billion of committed
U.S. credit lines, will provide the company with ample liquidity
to meet its operational needs through 2009.

“The actions announced today are difficult decisions, but
necessary to respond to the current auto market conditions,”
said Mr. Wagoner. “Even under conservative planning scenarios,
GM is well-positioned to withstand the U.S. market downturn and
emerge a stronger company.  We have a solid position in the
rapidly growing emerging markets, a global operating framework
that allows us to respond to changes in the U.S. market, a
commitment to technology leadership, and an ever stronger and
competitive product line-up.”

A full-text copy of GM's fact sheet related to its turnaround
plan is available at no charge at:

     http://ResearchArchives.com/t/s?2f82

Mr. Wagoner, Frederick A. Henderson, GM's President and Chief
Operating Officer and Ray G. Young, GM's Executive Vice
President and Chief Financial Officer, gave a presentation for
the media and securities analysts entitled "Aligning the
Business with Current Market Conditions" on July 15.  A full-
text copy of that presentation is available at no charge at:

     http://ResearchArchives.com/t/s?2f83

                     About General Motors

Based in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908.  GM employs
about 266,000 people around the world and manufactures cars and
trucks in 35 countries, 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.


GENERAL MOTORS: S&P Retains Negative Watch After Cost Reductions
----------------------------------------------------------------
Standard & Poor's Ratings Services said that its 'B' corporate
credit and senior unsecured debt ratings and 'BB-' senior
secured debt rating on General Motors Corp. remain on
CreditWatch with negative implications, where they were placed
June 20, 2008.  The update follows GM's announcement of a series
of cost reductions and other initiatives aimed at saving
US$10 billion in cash from operations by the end of 2009.  GM
also announced plans to obtain US$4 billion to US$7 billion in
cash from capital market transactions and asset sales.

“We view these announcements as being absolutely necessary steps
for maintaining liquidity,” said Standard & Poor's credit
analyst Robert Schulz, “given the magnitude of the company's
expected cash use caused by currently dismal market conditions
in the U.S. automotive market.”  Still, execution timing is
considerable, and most of the benefits from cost reductions will
be reaped throughout the course of 2009.  GM's focus is to
preserve adequate liquidity for the next 18 months and continue
to attempt to align its cost structure with the North American
light-vehicle market, which appears to have been permanently
altered by high gas prices.

The continuing CreditWatch review, which S&P are also
undertaking with Ford Motor Co. and Chrysler LLC, reflects its
concerns about the financial damage being inflicted by
deteriorating U.S. industry conditions-largely as a result of
high gasoline prices.  The difficulty GM and the other Michigan-
based automakers are having in anticipating the pace of market
deterioration -- and the likely prolonged tenor of the downturn
-- has led to another round of announcements of cost reductions
and actions to bolster liquidity.  These follow other aggressive
cost-saving measures taken during the past several years that
have proved insufficient.

S&P will review GM's business and financial prospects, including
liquidity, in light of GM's announcement, and the general U.S.
and global automotive industry conditions to resolve the
CreditWatch review.  GM currently has adequate liquidity through
at least the end of 2008 -- US$23.9 billion of unrestricted cash
and short-term investments at March 31, 2008, and an unused
US$4.48 billion bank facility and significant unencumbered
assets.  S&P intend to resolve the CreditWatch reviews on GM,
Ford, and Chrysler by the end of July.  Given the severe risks
created by weak prospects for U.S. auto demand for the rest of
2008 and for 2009, the possibility of a downgrade of more than
one notch cannot be dismissed for any of the companies.  GM to
Bolster Liquidity by US$15 Billion through 2009:

    * Operating and related actions to generate approximately
      US$10 billion in cash improvements
    * More than 20% reduction in salaried employment cash costs
    * Dividend on common stock suspended
    * Asset sales and capital market activities to raise
      US$4-7 billion of additional liquidity

General Motors Corp. said it is taking further steps to adapt
its business to rapidly changing market conditions, marked by
the weak U.S. economy, record high fuel prices, shifts in
consumer vehicle preferences, and the lowest U.S. industry sales
volumes in a decade.

“We are responding aggressively to the challenges of today's
U.S. auto market,” said GM Chairman and CEO, Rick Wagoner.  “We
will continue to take the steps necessary to align our business
structure with the lower vehicle sales volumes and shifts in
sales mix.  We remain committed to bringing to market great
products that target changing consumer preferences for more
fuel-efficient vehicles.”  Mr. Wagoner noted that 11 of GM's 13
most recent major U.S. product launches, and 18 of its next 19
launches, are cars and crossovers, which are key growth areas.

“Today's actions, combined with those of the past several years,
position us not only to survive this tough period in the U.S.,
but to come out of it as a lean, strong and successful company,”
Wagoner said.

For liquidity planning purposes, GM is using assumptions of U.S.
light vehicle industry volumes of 14.0 million units in 2008-
2009 which are significantly below trend.  Other planning
assumptions include lower U.S. share of approximately 21 percent
and continued elevated average oil price estimates ranging from
US$130 to US$150 per barrel by 2009.  Based on those
assumptions, GM is taking actions to further reduce structural
cost, and generate cash, with the goal of maximizing liquidity.

                 Ample Liquidity to Fund 2008 Costs

At the end of the first quarter 2008, GM had liquidity of
US$23.9 billion, with access to U.S. credit facilities of an
additional US$7 billion.  While the company has ample liquidity
to meet its 2008 funding requirements, it is taking additional
measures to bolster liquidity to protect against a prolonged
U.S. downturn.  The actions include a combination of operating
and related actions, as well as asset sales and capital market
activities. The cumulative impact on cash through 2009 is
projected to be approximately US$15 billion.

         US$10 Bil. in Cash Improvements By End of 2009

Through a number of internal operating changes and other
actions, GM expects to generate approximately US$10 billion of
cumulative cash improvements by the end of 2009, versus original
plans.

    * GM plans further salaried headcount reductions in the U.S.
      and Canada in the 2008 calendar year, which will be
      achieved through normal attrition, early retirements,
      mutual separation programs and other separation tools. In
      addition, health care coverage for U.S. salaried retirees
      over 65 will be eliminated, effective January 1, 2009.
      Affected retirees and surviving spouses will receive a
      pension increase from GM's over funded U.S. salaried plan
      to help offset costs of Medicare and supplemental
      coverage.  And there will be no new base compensation
      increases for U.S. and Canadian salaried employees for the
      remainder of 2008 and 2009.

      Beyond these moves, which also impact GM executives,
      additional actions are being taken. There will be no
      annual discretionary cash bonuses for the company's
      executive group in 2008.  With the elimination of the
      annual cash bonus, combined with GM's long-term incentives
      which are driven by GM stock price performance to assure
      alignment with its stockholders, GM's executive group will
      have a significant reduction in their cash compensation
      opportunity for 2008. For the company's top executive
      officers, it represents a reduction in their cash
      compensation opportunity of 75 to 84 percent.

      These benefit changes, salaried headcount reductions and
      other related savings will result in an estimated
      reduction in cash costs of more than 20 percent, or
      US$1.5 billion in 2009.

    * Additional structural cost reductions of approximately
      US$2.5 billion are expected in GM North America (GMNA).
      The reductions will be partially achieved through further
      adjustments in truck capacity and related component,
      stamping and powertrain capacity in response to lower U.S.
      industry volume. Truck capacity is expected to be reduced
      by 300,000 units by the end of 2009, half of which is from
      acceleration of prior announced actions, and half from new
      capacity actions.

      In addition, GM will reduce and consolidate sales and
      marketing budgets, with a focus on protecting launch
      products and brand advertising.  Engineering spending in
      2008 and 2009 will be held at 2006-2007 levels,
      substantially lower than original plans.  These operating
      actions, combined with the benefits of the 2007 GM-UAW
      labor agreement, are targeted to reduce North American
      structural cost from US$33.2 billion in 2007 to
      approximately US$26-27 billion in 2010, a reduction of
      US$6-7 billion.

    * GM is revising its capital spending plan and reducing
      approximately US$1.5 billion in expenditures versus prior
      plans.  Capital expenditures are now estimated to total
      US$7 billion in 2009 versus prior plans of US$8.5 billion
      (these figures do not include the US$1 billion in capital
      spending planned in both 2008 and 2009 in China, which is
      self-funded by the GM joint ventures, to support growth in
      that market).  A major part of the reductions is related
      to the delay of the next generation large pickup and SUV
      program, as well as V-8 engine development and associated
      capacity.

      Spending for non-product programs will also be
      significantly reduced, while powertrain spending will be
      increased to support the development of alternative
      propulsion and fuel economy technologies and small
      displacement engines. The revised 2009 capital spending
      plan is higher than the average capital expenditures in
      2005-2007, excluding large pickup and SUV-related
      spending. Excluding China, GM expects capital expenditures
      to run in the US$7-7.5 billion range beyond 2009.

    * Aggressive actions are being taken to improve working
      capital by approximately US$2 billion in North America and
      Europe, primarily related to the reduction of raw
      material, work-in-progress and finished goods inventory
      levels as well as lean inventory practices at parts
      warehouses.

    * GM will defer approximately US$1.7 billion of payments
      that had been scheduled to be made to a temporary asset
      account over the balance of 2008 and 2009 for the
      establishment of the new UAW VEBA.

    * The GM Board of Directors has decided to suspend future
      dividends on common stock, effective immediately, which is
      expected to improve liquidity by approximately
      US$800 million through 2009.

               Asset Sales Ad Financing Activities

In addition to the operating changes and other actions, GM
expects to raise additional liquidity of US$4-7 billion through
asset sales and financing activities.

    * GM is undertaking a broad global assessment of its assets
      for possible sale or monetization, which is expected to
      generate approximately US$2-4 billion of additional
      liquidity.  The company believes there is significant
      liquidity potential from asset sales, without impacting
      the strategic direction of the company.  Outside advisors
      are currently engaged in evaluating alternatives.  A
      strategic analysis of the Hummer brand is underway, and GM
      is continuing to focus on profit improvement initiatives
      across all remaining GM brands.

    * GM will continue to opportunistically access global
      markets to raise additional liquidity.  The company is
      initially targeting at least US$2-3 billion of financing.
      The company has gross unencumbered assets of over
      US$20 billion, which could support a significant secured
      debt offering, or multiple offerings, that would far
      exceed the initial target. Examples of such assets include
      stock of foreign subsidiaries, brands, stake in GMAC, and
      real estate.

Actions outlined today comprehend the anticipated impact of
second quarter results, which the company plans to announce in
the near future.  GM anticipates it will report a significant
second quarter loss, driven in part by the previously disclosed
negative impact of the American Axle and local union strikes in
North America, as well as the continued weakness in the U.S.
auto market and adverse vehicle segment mix.

In addition, the company expects to record significant charges
or expenses related to its previously announced hourly attrition
program in the U.S., the recently announced North American truck
capacity actions, valuation of GMAC stock, lease assets, Delphi
recoveries, the American Axle settlement, the Canadian labor
contract, and others.

GM is highly confident that the initiatives announced today, in
conjunction with the current cash position and its
US$4-5 billion of committed U.S. credit lines, will provide the
company with ample liquidity to meet its operational needs
through 2009.

“The actions announced today are difficult decisions, but
necessary to respond to the current auto market conditions,”
said Wagoner.  “Even under conservative planning scenarios, GM
is well-positioned to withstand the U.S. market downturn and
emerge a stronger company.  We have a solid position in the
rapidly growing emerging markets, a global operating framework
that allows us to respond to changes in the U.S. market, a
commitment to technology leadership, and an ever stronger and
competitive product line-up.”

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.


GENERAL MOTORS: Posts Record Quarterly Sales in LatAm Region
------------------------------------------------------------
General Motors Latin America, Africa and Middle East (GM LAAM)
region broke another record in Q2 2008 selling 346,100 vehicles,
up 52,100 units over the same period in 2007.  GM's volume
increase of nearly 18 percent for the quarter again exceeded the
industry growth rate of 13 percent. In addition, GM's market
share in the region climbed to 17.5 percent for the quarter, up
0.7 share points year-over-year.

Maureen Kempston Darkes, GM group vice president and president
of GM LAAM said, "The strong performance of GM's global products
in our markets, combined with our strong local manufacturing
presence, is enabling us to grow our sales volume and market
share faster than the industry in these emerging markets."

Brazil, Chile, Egypt and the North Africa markets posted all-
time quarterly GM sales records.  Egypt saw triple-digit growth
of nearly 110 percent.  Second quarter GM sales records were set
by Argentina, Ecuador and the Middle East.

"Strong demand for our Chevrolet products, such as the Chevrolet
Corsa, Celta and Aveo fueled our growth throughout the region,"
Kempston Darkes continued.  Those vehicles continued as the top
three sellers across the region in Q2 2008, representing 40
percent of GM sales.

For the first half of 2008, GM sold 670,100 units in the Latin
America, Africa and Middle East region.  This represents an
increase of nearly 19 percent, or 105,700 units, year-over-year.
GM's market share through June stands at 17.5 percent, up nearly
a share point over the first half of 2007.  Collectively, GM
sales were up a total of 36 percent in Africa, 17 percent in
South America and 7 percent in the Middle East.

                      About General Motors

Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908.  GM employs
about 266,000 people around the world and manufactures cars and
trucks in 35 countries.  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.

General Motors Latin America, Africa and Middle East, with
headquarters in Miramar, Florida, is one of GM's four regional
business units.  GM LAAM employs approximately 37,000 people in
18 countries and has manufacturing facilities in Argentina,
Brazil, Colombia, Ecuador, Egypt, Kenya, South Africa and
Venezuela.  GM LAAM markets vehicles under the Buick,
Cadillac, Chevrolet, GMC, Hummer, Isuzu, Opel, Saab and
Suzuki brands.


HEXION SPECIALTY: Huntsman Acquisition Gets EU Conditional Nod
--------------------------------------------------------------
The European Commission issued a decision that would permit
Hexion Specialty Chemicals, Inc.'s acquisition of Huntsman
Corp., contingent on, among other things, divestment of a
portion of the company's global specialty epoxy resins business
to a purchaser approved by the European Commission.

                         Background

As reported by the Troubled Company Reporter on July 13, 2007,
Huntsman agreed 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.

The Delaware Court of Chancery has granted Huntsman
Corporation's request to expedite the Court's review of Hexion
Specialty Chemicals Inc.'s efforts to abandon Hexion's pending
merger with Huntsman.  The trial will begin on Sept. 8, 2008.

              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 July 4, 2008.

The TCR related 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 90 days to Oct. 2, 2008, as permitted by the
terms of the merger agreement.

                Hexion's Lawsuit to Cancel Merger

On June 19, 2008, the TCR reported that Hexion and related
entities filed a suit in the Delaware Court of Chancery to
cancel the agreement.  Hexion said in the suit that it believes
that the capital structure agreed to by Huntsman and Hexion for
the combined company is no longer viable because of Huntsman's
increased net debt and its lower than expected earnings.  While
both companies individually are solvent, Hexion believes that
consummating the merger on the basis of the capital structure
agreed to with Huntsman would render the combined company
insolvent.

                     Comments and Responses

Hexion said that the company and Apollo Management L.P. received
a letter from Peter Huntsman, Huntsman Corporation's president
and CEO, stating that their actions were inconsistent with the
terms of 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
US$3 billion, plus exemplary damages,” according to Plasteurope
(Germany).

In response, Hexion said, “It is unfortunate that Huntsman has
chosen to file a baseless lawsuit against Apollo and to
personally sue two of its principals.  Huntsman's Texas suit
violates a clear provision of the merger agreement which
requires that any litigation be brought exclusively in the State
of Delaware.  As we alleged in our suit, 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.

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


SPECTRUM BRANDS: Fitch's Rtg. Unmoved by Terminated Salton Deal
---------------------------------------------------------------
Following the announcement that Spectrum Brands and Salton Inc
has mutually agreed to terminate the definitive agreement for
the sale of the Company's global pet supply business, Fitch
Ratings takes no action on Spectrum.  Fitch rates Spectrum as:

  -- Issuer Default Rating 'CCC';
  -- US$1 billion term loan B 'B/RR1'
  -- US$225 million ABL 'B/RR1'
  -- EUR350 million term loan 'B/RR1'
  -- US$700 million 7.4% senior sub note, 'CCC-/RR5'
  -- US$2.9 million 8.5% senior sub note, 'CCC-/RR5'
  -- US$347 million 11.25% variable rate toggle senior sub note,
     'CCC-/RR5'

The rating outlook is negative.

Fitch views the termination as basically credit neutral.  The
pet food segment represented approximately a third of Spectrum's
EBITDA before corporate overhead and is a steady year-round
performer which improves the company's earning quality.
Furthermore, Fitch has noted earlier that while debt balances
would have declined with the segment's sale, credit metrics on a
pro-forma basis were only marginally improved.  In the near-term
Spectrum has enough liquidity to operate its business and
service its debt.

Fitch will continue reviewing Spectrum's performance going
forward to gain a better understanding of the company, given
that it remains focused on improving its capital structure.

Headquartered in Atlanta, Georgia, Spectrum Brands Inc. (NYSE:
SPC) -- http://www.spectrumbrands.com/-- is a supplier of
consumer batteries, lawn and garden care products, specialty pet
supplies, shaving and grooming products, household insect
control products, personal care products and portable lighting.

The company's European unit, Rayovac Europe GmbH, is
headquartered in Sulzbach, Germany.  Outside the United States,
the company also has manufacturing facilities in Brazil,
Columbia and China.


TELE NORTE: Telemar to Ink BRL4.3 Mil. Loan With Banco do Brasil
----------------------------------------------------------------
Telemar Norte Leste S.A, a company controlled by Tele Norte
Leste Participacoes S.A (TNL), has entered into a credit
facility with Banco do Brasil in the form of a Bank Credit
Certificate (Cedula de Credito Bancario) with these terms and
conditions:

    (i) an aggregate amount of BRL4.3 billion;

   (ii) an 8-year term;

  (iii) a cost of the rate of the Interbank Deposit Certificate
        (Certificado de Deposito Interbancario – CDI ) + 1.30%
        p.a.;

   (iv) interest due semi-annually (commencing in May 2010 and
        ending in May 2016); and

    (v) principal due in seven annual installments commencing in
        May 2010.

The credit agreement is in connection with its future
acquisition of indirect control of Brasil Telecom Participacoes
S.A and Brasil Telecom S.A., and otherwise in connection with
the other transactions stated in the Relevant Fact released by
the company on April 25, 2008.

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.


UNIAO DE BANCOS: Shareholders OK Upgrade of Share Bonus Issuance
----------------------------------------------------------------
The shareholders of Uniao de Bancos Brasileiros SA and Unibanco
Holdings S.A. have approved during their Extraordinary
Shareholders' Meeting on July 16, 2008, the increase of their
relevant corporate capital with the issuance of share bonus.

The approved proposal includes:

   1) Capital Increase of Unibanco

      The increase of the corporate capital in the value of
      BRL3 billion, resulting to the increase of the overall
      corporate capital from BRL8 billion to BRL11 billion,
      through the capitalization of funds previously allocated
      in the Reserve aimed to guarantee to the company an
      appropriate operational margin.

   2) Capital Increase of Unibanco Holdings

      The increase of the corporate capital in the value of
      BRL1.74 billion, resulting to the increase of the overall
      corporate capital from BRL4.55 billion to BRL6.29 billion,
      through the capitalization of BRL1.46 billion registered
      as Participation Equalization Reserve and
      BRL276.7 million registered as Profit Reserve.

   3) Bonus Shares at a 10% Rate

      The increase of the corporate capital of Unibanco and
      Unibanco Holdings will be carried out with the issuance
      of shares to be delivered to the shareholders holding
      outstanding shares, in the proportion of one new share for
      each ten shares owned.  Thus, it will be given to the
      shareholders, on a free basis and as a bonus, one new
      share of the same type for each ten shares owned.

   4) Units

      Holders of units, a share deposit certificate
      representative of one preferred share of Unibanco and one
      preferred share of Unibanco Holdings, will receive, for
      each ten Units owned, one additional Unit, as bonus.

   5) Global Depositary Shares

      The holders of GDSs traded within the New York Stock
      Exchange, currently corresponding to ten Units, will
      receive, for each ten GDSs held, one new GDS, as bonus.

   6) Number of Shares to be Issued by Unibanco

      280.7 million new shares will be issued, of which
      151.1 million are common shares and 129.6 million are
      preferred shares.

   7) Number of Shares to be Issued by Unibanco Holdings

      164.3 million new shares will be issued, of which
      55.3 million are common shares and 108.9 million are
      preferred shares.

   8) Unitary Cost

      The unitary cost that will be ascribed to the bonus
      shares, pursuant to the provisions of 1st paragraph of
      Article 25 of the Normative Instruction No. 25/2001, of
      the Brazilian Federal Revenue Secretary, will be (i)
      BRL10.685451 to the shares issued by Unibanco, (ii)
      BRL10.614037 to the shares issued by Unibanco Holdings,
      and (iii) BRL21.299488 to the Units.

   9) Increase of the Authorized Capital

      It was also approved the increase in the number of the
      shares, which are part of the company’s authorized
      capital, in an amount equal to the shares to be issued as
      a result of the share bonus.

  10) Treasury Stock

      The treasury stocks will receive bonus shares, subject to
      a favorable opinion of the Brazilian Securities Exchange
      Commission about the possibility of such bonus, in the
      terms of the consultation addressed to CVM on July 7,
      2008.  If CVM gives an adverse opinion about such
      possibility, the respective Boards of Directors will
      determine, considering the outstanding number of shares in
      the Record Date, (i) the number of shares to be issued as
      a result of the distribution of bonus shares approved,
      (ii) the new number of shares that will constitute the
      corporate capital of the companies, including the
      authorized capital and (iii) the unitary costs to be
      ascribed to the bonus shares adjusted to the number of
      shares actually issued.  These information will be
      informed to the shareholders by means of a company
      announcement.

  11) Record Date

      Considering that in addition to the consultation to CVM
      mentioned above, the resolution of Unibanco about the
      bonus shares will also be subject to the prior approval of
      the Central Bank of Brazil, the Record Date for the right
      to receive the bonus shares will be released, by means of
      a company announcement, after the manifestation of both
      governmental agencies.  Therefore, the existing shares of
      the company will continue to be traded with the right to
      the bonus shares until the date is properly informed; only
      after such date the shares will be traded ex-rights to
      the bonus shares.

  12) Fractional Shares

      The bonus shares will be always carried out in whole
      numbers, provided that the balance resulting from
      fractional shares will be grouped and sold in the Sao
      Paulo Stock Exchange.  The appraised value will be
      furnished to the shareholders enrolled as owners of shares
      in the record date.

                      About Uniao de Bancos

Headquartered in Sao Paulo, Brazil, Uniao de Bancos Brasileiros
SA -- http://www.unibanco.com/-- is a full-service financial
institution providing a range of financial products and services
to a diversified individual and corporate customer base
throughout Brazil.  The company's businesses comprise segments:
Retail, Wholesale, Insurance and Pension Plans and Wealth
Management.  Uniao de Bancos and its associated companies
FinInvest, LuizaCred, PontoCred and Tecban (Banco 24 Horas)
offer a network composed of 17,000 points of service.  It also
counts on 7,580 automated teller machines and all 30 Hours'
products and services, including the telephone service and the
Internet banking.  The company's international network consists
of branches in Nassau and the Cayman Islands; representatives
offices in New York; banking subsidiaries in Luxembourg, the
Cayman Islands and Paraguay; and a brokerage firm in New York
-- Unibanco Securities Inc.

                          *     *     *

In April 2008, Moody's Investors Service assigned a Ba2 foreign
currency deposit rating to Uniao de Bancos Brasileiros SA.



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

BAKER STREET: Proofs of Claim Filing Deadline Is July 24
--------------------------------------------------------
Baker Street CLO V Ltd.'s creditors have until July 24, 2008, to
prove their claims to George Bashforth and Emile Small, 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.

Baker Street's shareholders agreed 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:

                George Bashforth and Emile Small
                c/o Maples Finance Limited
                P.O. Box 1093GT
                Grand Cayman, Cayman Islands


BIG ROOKIE: Proofs of Claim Filing Is Until July 24
---------------------------------------------------
Big Rookie SPC's creditors have until July 24, 2008, to prove
their claims to Giles Kerley and Jan Neveril, 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.

Big Rookie's shareholders agreed on June 13, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidators can be reached at:

                Giles Kerley and Jan Neveril
                c/o Maples Finance Limited
                P.O. Box 1093GT
                Grand Cayman, Cayman Islands


KI SPECIALITY: Deadline for Proofs of Claim Filing Is July 24
-------------------------------------------------------------
KI Specialty Financial Fund Ltd.'s creditors have until
July 24, 2008, to prove their claims to Giles Kerley and Sarah
Kennedy, 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.

KI Specialty's shareholder(s) decided on June 11, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

                Giles Kerley and Sarah Kennedy
                c/o Maples Finance Limited
                P.O. Box 1093GT
                Grand Cayman, Cayman Islands


MEGARA II: Proofs of Claims Filing Is Until July 23
---------------------------------------------------
Megara II Ltd.'s creditors have until July 23, 2008, to prove
their claims to Piccadilly Cayman 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.

Megara II's shareholders decided on June 3, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidator can be reached at:

                 Piccadilly Cayman Limited
                 c/o BNP Paribas Bank & Trust Cayman Limited,
                 P.O. Box 10632 APO
                 3rd Floor Royal Bank House, Shedden Road
                 George Town, Grand Cayman
                 Cayman Islands

Contact for inquiries:

                 Ellen J. Christian
                 Telephone: 345 945 9208
                 Fax: 345 945 9210


MEGARA II: Sets Final Shareholders Meeting for July 23
------------------------------------------------------
Megara II Ltd. will hold its final shareholders meeting on
July 23, 2008, at 10:00 a.m., at the offices of BNP Paribas Bank
& Trust Cayman Limited, 3rd Floor Royal Bank House, Shedden
Road, George Town, Grand Cayman, Cayman Islands.

These matters will be taken up during the meeting:

   1) accounting of the wind-up process, and

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

Megara II's shareholders agreed on June 3, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidator can be reached at:

                 Piccadilly Cayman Limited
                 c/o BNP Paribas Bank & Trust Cayman Limited,
                 P.O. Box 10632 APO
                 3rd Floor Royal Bank House, Shedden Road
                 George Town, Grand Cayman
                 Cayman Islands

Contact for inquiries:

                 Ellen J. Christian
                 Telephone: 345 945 9208
                 Fax: 345 945 9210


PATCHWORK LIMITED: Proofs of Claim Filing Deadline Is July 23
-------------------------------------------------------------
Patchwork Limited's creditors have until July 23, 2008, to prove
their claims to Stephen John Le Selleur, 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.

Patchwork's shareholder decided on April 3, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidator can be reached at:

                 Stephen John Le Selleur
                 P.O. Box 88
                 1 Grenville Street, St. Helier
                 Jersey, JE4 9PF

Contact for inquiries:

                 Joanne Mills
                 Telephone: 44 1534 672554
                 Fax: 44 1534 672426


READE STREET: Proofs of Claim Filing Is Until July 24
-----------------------------------------------------
Reade Street CLO Ltd.'s creditors have until July 24, 2008, to
prove their claims to Mora Goddard and Emile Small, 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.

Reade Street's shareholders agreed 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:

                Mora Goddard and Emile Small
                c/o Maples Finance Limited
                P.O. Box 1093GT
                Grand Cayman, Cayman Islands


SCOTTISH ANNUITY: 10-K Filing Prompts S&P to Junk Credit Ratings
----------------------------------------------------------------
Standard & Poor's Ratings Services has lowered its counterparty
credit and financial strength ratings on Scottish Annuity & Life
Insurance Co. (Cayman) Ltd. and affiliated operating companies
to 'CCC+' from 'B-'.

S&P also lowered its ratings on all these companies' dependent
unwrapped securitized deals by one notch. The ratings on the
parent holding company, Scottish Re Group Ltd. (CCC-/Watch
Neg/--), are unchanged.

The ratings remain on CreditWatch with negative implications.

“The downgrade reflects the greater-than-expected deterioration
in the group's already severely limited financial flexibility
and liquidity,” said S&P's credit analyst Robert A. Hafner.
“This has resulted primarily from the higher-than-expected asset
impairments leading to additional collateral posting
requirements, as disclosed in the company's recent 10-K filing.”
The US$971.7 million of investment impairments taken in 2007
and US$751.7 million of additional impairments expected to be
recognized in first quarter 2008 GAAP financials substantially
reflect a mark-to-market write-down necessitated by the
inability to assert the intent and ability to hold these
securities to recovery of amortized value rather than projected
losses.  Nonetheless, the uncertain economic value of these
investments and associated impairments increase the stress on
Scottish Re's financial condition and degrades its liquidity,
capitalization, and financial flexibility.

The group's liquidity decreased to about US$65 million as of
June 30, 2008, from nearly US$400 million at year-end 2007.
According to company management, the pending sale of its
international and wealth-management operations is expected to
provide additional liquidity in excess of US$70 million during
the third quarter.  Although this might provide sufficient
resources to meet liquidity needs for the next several months,
unexpected developments -- including further declines in the
market value of investments -- could exhaust liquidity resources
sooner.  Scottish Re is taking multiple concurrent actions to
maintain its liquidity, ensure statutory reserve credits are not
lost, and preserve its solvency.

It is S&P's opinion that the only strong option available to the
company for preserving longer-term solvency is the sale of its
North American segment, which constitutes the bulk of its
remaining operations.  Given its weak liquidity position,
management indicates that if the group does not quickly find a
buyer, it could be forced to seek bankruptcy protection
relatively soon.  Substantial incentives exist for the
interested parties to reach a definitive agreement, which
increases the likelihood the group will be successful in
securing the sale of these operations before exhausting its
liquidity.

The ratings will remain on CreditWatch negative at least until
Scottish Re secures the sale of its North American segment and
its liquidity demands are better balanced by its liquidity
resources.  S&P will lower the ratings again if the sale of its
international, wealth-management, or North American segment do
not materially progress as expected and alternative capital,
liquidity, and XXX reserve funding is not secured.

Scottish Re Group Ltd. -- http://www.scottishre.com/-- is a
global life reinsurance specialist.  Scottish Re has operating
businesses in Bermuda, Grand Cayman, Guernsey, Ireland, the
United Kingdom, United States, and Singapore.  Its flagship
operating subsidiaries include Scottish Annuity & Life Insurance
Company (Cayman) Ltd. and Scottish Re (US), Inc.  Scottish
Re Capital Markets, Inc., a member of Scottish Re Group Ltd.,
is a registered broker dealer that specializes in securitization
of life insurance assets and liabilities.  On Sept. 30, 2007,
Scottish Re reported total assets of US$13.4 billion and
shareholder's equity of US$869 million.


UNITED ASIAN: Proofs of Claim Filing Deadline Is July 24
--------------------------------------------------------
United Asian CBO 1 Ltd.'s creditors have until July 24, 2008, to
prove their claims to Wendy Ebanks and Emile Small, 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.

United Asian's shareholders agreed on June 9, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidators can be reached at:

                Wendy Ebanks and Emile Small
                c/o Maples Finance Limited
                P.O. Box 1093GT
                Grand Cayman, Cayman Islands



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

HUNTSMAN CORP: Sale to Hexion Specialty Gets EU Conditional Nod
---------------------------------------------------------------
The European Commission issued a decision that would permit
Hexion Specialty Chemicals, Inc.'s acquisition of Huntsman
Corp., contingent on, among other things, divestment of a
portion of the company's global specialty epoxy resins business
to a purchaser approved by the European Commission.

                         Background

As reported by the Troubled Company Reporter on July 13, 2007,
Huntsman agreed 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.

The Delaware Court of Chancery has granted Huntsman
Corporation's request to expedite the Court's review of Hexion
Specialty Chemicals Inc.'s efforts to abandon Hexion's pending
merger with Huntsman.  The trial will begin on Sept. 8, 2008.

              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 July 4, 2008.

The TCR related 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 90 days to Oct. 2, 2008, as permitted by the
terms of the merger agreement.

                Hexion's Lawsuit to Cancel Merger

On June 19, 2008, the TCR reported that Hexion and related
entities filed a suit in the Delaware Court of Chancery to
cancel the agreement.  Hexion said in the suit that it believes
that the capital structure agreed to by Huntsman and Hexion for
the combined company is no longer viable because of Huntsman's
increased net debt and its lower than expected earnings.  While
both companies individually are solvent, Hexion believes that
consummating the merger on the basis of the capital structure
agreed to with Huntsman would render the combined company
insolvent.

                     Comments and Responses

Hexion said that the company and Apollo Management L.P. received
a letter from Peter Huntsman, Huntsman Corporation's president
and CEO, stating that their actions were inconsistent with the
terms of 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
US$3 billion, plus exemplary damages,” according to Plasteurope
(Germany).

In response, Hexion said, “It is unfortunate that Huntsman has
chosen to file a baseless lawsuit against Apollo and to
personally sue two of its principals.  Huntsman's Texas suit
violates a clear provision of the merger agreement which
requires that any litigation be brought exclusively in the State
of Delaware.  As we alleged in our suit, 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.



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

BANCOLOMBIA: Francisco Botero Quits as Director's Board Member
--------------------------------------------------------------
Bancolombia S.A was informed, by a letter dated July 14, 2008,
of Francisco Moncaleano Botero's resignation as a member of
Bancolombia's Board of Directors and the Audit Committee of the
Board.  The acceptance of the resignation and the election, if
any, of a new member of the Board will occur at Bancolombia's
next General Shareholders Meeting.

The Board of Directors, whose next scheduled meeting is on
July 28, 2008, has the power to decide all matters regarding the
composition of Bancolombia's Audit Committee.

                         About Bancolombia

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.



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

BANCO INTERCONTINENTAL: Former Officials to Go to Najayo Prison
---------------------------------------------------------------
Dominican Today reports that National District Judge Saulo
Ysabel Diaz has confirmed that former Banco Intercontinental
officials convicted of fraud will be imprisoned in Najayo in San
Cristobal.

As reported in the Troubled Company Reporter-Latin America on
July 17, 2008, the Supreme Court agreed with the National
District Court of Appeals' decision of upholding the 10-year
prison sentence it imposed against Marcos Baez Cocco and Luis
Alvarez Renta.  The prosecution had appealed the sentences
against the Banco Intercontinental officials and also appealed
Vivian Lubrano del Castillo's acquittal, seeking six years in
prison.

According to Dominican Today, Judge Diaz said Messrs. Figueroa,
Cocco, and Renta will be sent to the penitentiary.  They will
appear before the court at noon as agreed with their attorneys,
the judge added.  Meanwhile, Ms. Lubrano de Castillo was
hospitalized on Monday.

The convicts won't have privileges in the penitentiary,
Dominican Today says, citing Najayo Prisons Director Jose
Ignacio Sandoval.  "They'll be isolated but not with privileges,
to prevent being attacked and to try to protect their physical
integrity, but not subject to privileges," Mr. Sandoval added.

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


BASIC ENERGY: Grey Wolf Investors Snub Merger, Terminate Deal
-------------------------------------------------------------
Grey Wolf Inc. terminated its merger agreement with Basic Energy
Services Inc.  Grey Wolf disclosed that its proposed merger did
not receive sufficient votes from Grey Wolf shareholders at its
special meeting of shareholders held July 15.

As reported in the Troubled Company Reporter on July 14, 2008,
Precision Drilling Trust said it will ask Grey Wolf's board
of directors to reconsider its US$10.00 per share buyout offer
if Grey Wolf shareholders reject a proposed merger with Basic.

In light of this development, the board of directors of Grey
Wolf plans to review the company's alternatives for enhancing
shareholder value.  This review will include an update to the
company's existing strategic plan and will encompass
consideration of continued internal growth by remaining
independent, acquisitions, mergers, sale of the company,
strategic alliances, joint ventures and financial alternatives.

The board has engaged UBS Investment Bank as its independent
financial advisor to assist the Company in conducting this
review.

"Grey Wolf remains fully committed to enhancing shareholder
value.  After thorough consideration, Grey Wolf's board believed
that the addition of Basic's complementary business and assets
would have been an excellent strategic fit for us and would have
created significant value," Thomas P. Richards, chairman,
president and CEO of Grey Wolf, said.

"The board will now continue to consider other alternatives to
enhance shareholder value and it will do so in an environment of
strong commodity prices, a related strengthening in the onshore
U.S. lower 48 drilling market and the potential inherent in Grey
Wolf's asset base," Mr. Richards continued.

The company cautions shareholders that there is no assurance
that the review will result in any specific transaction and no
timetable has been set for its completion.  The company does not
intend to disclose developments relating to this review unless
and until its board approves a specific agreement or
transaction.

The company will also take a pre-tax charge to earnings of
approximately US$17.00 million or approximately US$0.05 per
diluted share during the third quarter of this year as a result
of the shareholder vote and related termination of the merger
agreement.

                 About Precision Drilling Trust

Precision Drilling Trust (NYSE:PDS and TSX:PD.UN) is an
unincorporated open-ended investment trust established under the
laws of the Province of Alberta, Canada.

                         About Grey Wolf

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

                  About Basic Energy Services


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

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

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


BASIC ENERGY: Merger Kill Cues Moody's to Confirm Ba3 Ratings
-------------------------------------------------------------
Moody's Investors Service has confirmed the ratings for Basic
Energy Services, Inc. following the company's statement that it
has terminated its proposed merger with Grey Wolf, Inc.

The confirmed ratings for Basic are the Ba3 corporate family
rating, the Ba3 probability of default rating, the B1 (LGD 5,
74%) senior unsecured note rating, and the Ba1 (LGD 2,19%)
rating on the senior secured revolving credit facility.  This
concludes the review for possible upgrade initiated on April 21,
2008 in response to the merger statement with GW. The outlook is
stable.

Simultaneously, Moody's withdrew the ratings for Horsepower
Holdings, Inc., the entity formed to be the holding company to
facilitate the merger with GW.  The ratings being withdrawn for
HHI are the Ba2 CFR, the Ba2 PDR, the Ba1 (LGD 3, 39%) to the
proposed first lien credit facilities, and the SGL-2 rating.

The confirmation of the Ba3 CFR follows the termination of the
merger with GW that it resulted from the GW shareholders voting
against the merger.  Basic has disclosed that has terminated the
merger agreement and will resume its strategy prior to the
merger statement.  The Ba3 continues to reflect Basic's position
a leading provider of workover services in the North American
market as well as its conservative financial policies.

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

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

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


=========
H A I T I
=========

DYNCORP INT'L: Prices US$125MM Offering of 9-1/2% Sr. Sub. Notes
----------------------------------------------------------------
DynCorp International LLC and its subsidiary DIV Capital
Corporation priced its US$125 million in aggregate principal
amount of additional 9-1/2% senior subordinated notes due 2013.
The senior subordinated notes are to be issued under the
issuers' existing senior subordinated notes indenture.

DynCorp intends to use the net proceeds from the private
placement to repay in part borrowings under its existing senior
secured credit facility.

Concurrently with the closing of the offering, DynCorp intends
to enter into a new senior secured credit facility under which
it intends to refinance the remainder of the balance under its
existing senior secured credit facility.

Headquartered in Falls Church, Virginia, DynCorp International
Inc. (NYSE: DCP) -- http://www.dyn-intl.com/-- through its
operating company DynCorp International LLC, is a provider of
specialized mission-critical technical services, mostly to
civilian and military government agencies.  It operates major
programs in law enforcement training and support, security
services, base operations, aviation services and operations, and
logistics support worldwide.  DynCorp has approximately 14,600
employees worldwide including Haiti.


DYNCORP INT'L: S&P Holds 'B' Rtg. on Planned US$445M Notes Issue
----------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its issue-level
ratings on DynCorp International LLC's subordinated notes,
following the announcement that the company proposes to increase
the size of the issue to US$445 million (of which US$417 million
is outstanding), from US$320 million (of which US$292 million is
outstanding) through a US$125 million add-on offering.  The
notes are rated 'B', two notches below the corporate credit
rating on DynCorp.  The recovery rating on the notes remains
unchanged at '6', indicating expectations of a negligible (0%-
10%) recovery in the event of payment default.

DIV Capital Corp., which does not have any operations or
material assets, is a coissuer of the notes.  The proceeds from
the new notes and a proposed new credit facility will be used to
refinance the existing credit facility; S&P will withdraw the
ratings on the existing credit facility when the transaction
closes.

“The 'BB-' corporate credit rating on DynCorp International
reflects limited contract diversity; a weak, but improving,
financial profile; the risky nature of some of its operations,
and possible changes in U.S. foreign policy under a new
President,” said Standard & Poor's credit analyst Christopher
DeNicolo.  The ratings benefit somewhat from the firm's leading
market positions, high demand for its services, and a fairly
stable revenue base.  DynCorp International is a leading
provider of defense technical services and government outsourced
solutions.

The outlook is positive.  The expected significant increase in
revenues and earnings from the ramp-up of several key contracts,
as well as generally positive prospects for key markets, is
likely to result in improving credit protection measures.  S&P
could raise the ratings if DynCorp International's debt to
EBITDA falls below 3x and funds from operations to debt
increases to about 25% in the next year.  S&P could revise the
outlook to stable if funding for key programs declines or
leverage increases materially to fund new contracts or
acquisitions.  S&P will evaluate the impact on DynCorp from any
changes in U.S. defense or foreign policy, especially regarding
Iraq, after the new Presidential administration takes office in
early 2009.


Ratings List

DynCorp International LLC
Corporate Credit Rating                BB-/Positive/--
Senior Sec. Credit Facility            BB+
  Recovery Rating                       1

Ratings Affirmed

DynCorp International LLC
Subordinated                            B
  Recovery Rating                        6

Headquartered in Falls Church, Virginia, DynCorp International
Inc. (NYSE: DCP) -- http://www.dyn-intl.com/-- through its
operating company DynCorp International LLC, is a provider of
specialized mission-critical technical services, mostly to
civilian and military government agencies.  It operates major
programs in law enforcement training and support, security
services, base operations, aviation services and operations, and
logistics support worldwide.  DynCorp has approximately 14,600
employees worldwide including Haiti.



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

AIR JAMAICA: Takes Planes Out of Service
----------------------------------------
Radio Jamaica reports that Air Jamaica has grounded some of its
planes.

Two planes have been grounded since Tuesday, causing several
delays and cancellation of flights for North America, Radio
Jamaica relates.  One of the planes had a cracked windscreen.
The other plan has mechanical problems.  The affected flights
are New York, Fort Lauderdale, Philadelphia and Baltimore.

Radio Jamaica notes that two other planes were taken out of
service.

Air Jamaica's Marketing and Sales Senior Vice President Paul
Pennicooke assured that one of the planes should be back in
service by Thursday, according to Radio Jamaica.

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

                          *    *     *

As reported in the Troubled Company Reporter-Latin America on
June 12, 2007, Moody's Investors Service assigned a 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.



DIGICEL GROUP: Yvonne Wilks Will Leave Marketing Director Post
--------------------------------------------------------------
The Jamaica Observer reports that Digicel's Group Marketing
Director, Yvonne Wilks, will be leaving the company on July 31
to lead the new Cable Division at RJR Group, following the
announced resignation of Digicel Chief Executive Officer, David
Hunter.

According to The Jamaica Gleaner, Ms. Wilks will rejoin the RJR
communications group in September and will be appointed as
General Manager for the RJR Cable Division.

The Observer relates that for her role as general manager of the
new cable division, Ms. Wilks will oversee the amalgamation of
the three separate cable entities operated by the RJR Group --
RE Television, Jamaica News Network, and Television Sports
Network.

Ms. Wilks said she would start working at RJR in the first week
of September, The Observer reports.

Digicel Jamaica web site, Ms. Wilks holds a Bachelor of Arts
Degree in Social Sciences from the University of Westminster
(UK) and a Diploma in Media, Market Research, Advertising and
Public Relations.

According to Digicel Jamaica, Ms. Wilks was a Deputy Managing
Director for GV Media Group before joining Digicel.  She also
worked as a publisher for New Woman Magazine and TV Guide, and
was Vice Chairprerson and Director of Corporate Affairs for The
Voice Group before she became the Group Marketing Director at
RJR Communications

                         About Digicel

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

                         *     *     *

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


DIGICEL GROUP: Unit Identifies 13 Cellular Towers to Share
----------------------------------------------------------
Caribbean Net News that Digicel Group's unit in the British
Virgin Islands has identified 13 more cellular towers to share
with other telecommunications providers.

According to Caribbean Net, Digicel BVI Ltd. successfully
completed talks with CCT Global Communications to share nine
towers.  Digicel BVI's Chief Executive Officer Alan Bates said
an additional 13 towers are being considered.

As reported in the Troubled Company Reporter-Latin America on
July 17, 2008, Digicel expressed support of the government's
proposal for sharing cell towers in transmitting and receiving
digital signals across the islands.  The government directed
cellular phone providers to share structures after the islands'
residents complained about proliferation of towers as tall as
100 feet across the islands.  Communications and Works Minister
Julian Frazer met with CCT Global Communications, Cable &
Wireless, and Digicel last week to resolve issues regarding the
construction of service towers in "inappropriate places" and
occupying the same areas.  Officials from Town & Country
Planning and the Telecommunications Regulatory Commission also
attended the meeting.

Telecommunications providers met again to discuss on tower
sharing as requested by Communications and Works Minister Julian
Fraser, Caribbean Net relates.  The minister met earlier with
Cable and Wireless (BVI) Ltd., CCT Global Communications and
Digicel BVI Ltd.  During that meeting, it was agreed that
telecoms towers be shared wherever possible.

Towers that Digicel will build will be provisioned to
accommodate all three operators, Caribbean Net notes, citing Mr.
Bates.

The providers must inform the Telecommunications Regulatory
Commission TRC the outcome of the meeting for consideration at
the planned meeting by the TRC on July 18, 2008, Caribbean Net
states.

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

                         *     *     *

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


NAT'L COMMERCIAL: To Seek Court's Directions on Olint Accounts
--------------------------------------------------------------
Radio Jamaica reports that the National Commercial Bank Jamaica
Limited will go to Jamaica's High Court today to get directions
on the accounts of Olint Corp. Limited.

As reported in the Troubled Company Reporter-Latin America on
July 16, 2008, the court ordered National Commercial to keep
Olint's accounts open allowing the bank to keep on accepting
deposits and encashing withdrawals.

Radio Jamaica notes that the National Commercial is worried
about reports of more trouble in Olint's operations.  The
National Commercial said that the criminal investigation against
Olint and its director David Smith is now being conducted in the
Turks and Caicos Islands.

The Jamaica Gleaner relates that the police reportedly raided
Olint's offices and Mr. Smith's residence in Turks and Caicos.
Radio Jamaica notes that authorities froze the assets of the
company and Mr. Smith and confiscated some documents.

According to The Gleaner, U.S. authorities also ordered the
shutdown of Olint's offices in Miami, Florida.  Olint informed
its investors last Monday that its New Kingston offices would be
closed to the public until further notice.  CaribWorldNews.com
says that the closure was due to threats to staff members.

A source said that Olint's most recent problems began when it
tried to wire about US$200 million through a prominent Jamaican
bank two weeks ago, The Gleaner reports.  The Jamaican bank
reported the "suspicious activity" to authorities.
CaribWorldNews.com relates that the National Futures
Association, a self-regulatory organization for the U.S. futures
industry, filed complaints of "suspicious activity" against
Olint.

Headquartered in Kingston, Jamaica, the National Commercial Bank
Jamaica Limited  -- http://www.jncb.com/-- provides commercial
and retail banking, wealth management services.  The company's
services include personal banking, business banking, mortgage
loans, wealth management and insurance services.  Founded in
1977, the bank primarily operates in West Indies and the U.K.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
July 3, 2008, Fitch Ratings affirmed National Commercial
Bank Jamaica Limited's ratings on long-term foreign and local
currency Issuer Default Ratings at 'B+'; short-term foreign and
local currency IDRs at 'B'; Individual at 'D'; Support at 4; and
Support Floor at 'B'.

As reported in the Troubled Company Reporter-Latin America on
Dec. 18, 2006, Standard & Poor's Rating Services affirmed its
'B/B' counterparty credit and CD ratings on National Commercial
Bank Jamaica Ltd.  S&P said the outlook is stable.


NATIONAL COMMERCIAL: Launches New Branch in Port Antonio
--------------------------------------------------------
The Jamaica Gleaner reports that the National Commercial Bank
Jamaica Limited has launched a new branch in Port Antonio.

According to The Gleaner, the new branch is the 48th location in
the banking network.  It is in the old courthouse, a property
the bank subsequently acquired through a long-term lease from
the Ministry of Lands in February 2005.  The new branch will
host a "staff complement" of 17.  It will offer products from
the bank's insurance and wealth management units.

Headquartered in Kingston, Jamaica, the National Commercial Bank
Jamaica Limited  -- http://www.jncb.com/-- provides commercial
and retail banking, wealth management services.  The company's
services include personal banking, business banking, mortgage
loans, wealth management and insurance services.  Founded in
1977, the bank primarily operates in West Indies and the U.K.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
July 3, 2008, Fitch Ratings affirmed National Commercial
Bank Jamaica Limited's ratings on long-term foreign and local
currency Issuer Default Ratings at 'B+'; short-term foreign and
local currency IDRs at 'B'; Individual at 'D'; Support at 4; and
Support Floor at 'B'.

As reported in the Troubled Company Reporter-Latin America on
Dec. 18, 2006, Standard & Poor's Rating Services affirmed its
'B/B' counterparty credit and CD ratings on National Commercial
Bank Jamaica Ltd.  S&P said the outlook is stable.


OLINT LTD: Authorities Freeze Turks & Caicos Assets After Raid
--------------------------------------------------------------
Radio Jamaica reports that authorities in Turks & Caicos Islands
have frozen Olint Corp. Limited's assets following a raid in the
firm's offices and its director's residence.

According to The Jamaica Gleaner, the police reportedly raided
Olint's offices and David Smith's home after a report on
suspicious transaction.  Olint reportedly tried to wire about
US$200 million through a prominent Jamaican bank two weeks ago.
The Jamaican bank reported the "suspicious activity" to
authorities.  CaribWorldNews.com relates that the National
Futures Association, a self-regulatory organization for the U.S.
futures industry, filed complaints of "suspicious activity"
against Olint.

The Gleaner relates that U.S. authorities also ordered the
shutdown of Olint's offices in Miami, Florida.  Olint informed
its investors last Monday that its New Kingston offices would be
closed to the public until further notice.  Radio Jamaica notes
that authorities froze the assets of the company and Mr. Smith
and confiscated some documents.

The criminal investigation against Olint and Mr. Smith is now
ongoing in the Turks and Caicos Islands, The Gleaner says,
citing the National Commercial Bank Jamaica Limited.

Olint Corp. Limited is an investment scheme based in Jamaica.
It has operations in Turks and Caicos and the U.S.  It has been
facing legal problems since 2006 when the Financial Services
Commission served a cease-and-desist order on the firm.  On
Dec. 24, 2007, the court ruled that the operations of Olint
breached provisions of the Securities Act.  The firm had been
dealing in securities and engaging in the participation of a
profit-sharing agreement, issuing investment contracts, and
providing advice to potential investors without licenses and
registration.  Olint appealed the ruling and was granted a stay
of execution of the cease-and-desist order until the appeal was
heard in February 2008.  In May 2008, the National Commercial
Bank Jamaica Limited attempted to close three Olint accounts in
the bank.  However, Olint secured an injunction from the court
barring the National Commercial from closing the accounts.
Olint has suspended payments to its members since early this
year.



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

MCDERMOTT INTERNATIONAL: Moody's Hikes Ba3 Corp. Family Rating
--------------------------------------------------------------
Moody's Investors Service has upgraded the corporate family
ratings of both McDermott International Inc. and J Ray
McDermott, S.A. to Ba2 from Ba3 and upgraded their probability
of default ratings to Ba3 from B1.

At the same time, Moody's upgraded the universal shelf rating of
McDermott International to B2 from B3 and upgraded the senior
unsecured revenue bonds backed by McDermott Inc. to B1 from B2.

Finally, Moody's confirmed the Ba2 senior secured debt rating of
J Ray McDermott and the Baa3 senior secured rating of Babcock
and Wilcox Power Generation Group, Inc.  The outlook for all
companies is positive.  This concludes the review for upgrade
initiated on June 12, 2008.

The upgrade of McDermott International and J Ray McDermott's
corporate family ratings with positive outlooks reflects Moody's
expectation that end market demand for the companies' respective
business segments are likely to remain favorable into the medium
term.

Moody's believes McDermott International and J Ray McDermott are
likely to produce continued strong operating results and sustain
key credit metrics at levels supportive of the outlook
direction.  Ratings could be moved higher should the companies
continue to execute on their strong backlogs and maintain ample
amounts of liquidity and conservative balance sheets as they any
pursue strategic growth initiatives.

The confirmation of the facility ratings at Babcock and Wilcox
and J Ray McDermott considers the increase in size of the
revolving credit facilities for borrowing purposes which has
occurred at each of these entities within the past year, while
junior ranking unfunded pension liabilities have been reduced.

Upgrades:

Issuer: J. Ray McDermott, S.A.

  -- Corporate Family Rating, Upgraded to Ba2 from Ba3
  -- Probability of Default Rating, Upgraded to Ba3 from B1

Issuer: McDermott International Inc.

  -- Corporate Family Rating, Upgraded to Ba2 from Ba3
  -- Probability of Default Rating, Upgraded to Ba3 from B1

  -- Multiple Seniority Shelf, Upgraded to (P)B2, LGD 5, 88%
     from (P)B3, LGD 5, 88%

Issuer: Beaver (County of) PA, Industrial Devel Auth

  -- Senior Unsecured Revenue Bonds, Upgraded to B1, LGD 5, 75%
     from B2, LGD 5, 72%

Confirmations:

Issuer: Babcock & Wilcox Power Generation Gr, Inc.

  -- Senior Secured Bank Credit Facility, Confirmed at Baa3 (to
     LGD 2, 12% from LGD 1, 6%)

Issuer: J. Ray McDermott, S.A.

  -- Senior Secured Bank Credit Facility, Confirmed at Ba2 (to
     LGD 3, 30% from LGD 2, 22%)

Outlook Actions:

Issuer: Babcock & Wilcox Power Generation Gr, Inc.

  -- Outlook, Changed To Positive From Rating Under Review

Issuer: J. Ray McDermott, S.A.

  -- Outlook, Changed To Positive From Rating Under Review

Issuer: McDermott International Inc.

  -- Outlook, Changed To Positive From Rating Under Review

Moody's assesses the ratings for McDermott International and J
Ray McDermott using two separate corporate family ratings given
the distinct financing arrangements the company has established
for its operating entities.  McDermott International's credit
profile is assessed based on its consolidated results excluding
J Ray McDermott, which is considered stand alone and has its own
corporate family rating (Ba2).

Moody's said it would review its two corporate family rating
construct should the company alter its financing arrangements in
a way that consolidated bank lines at the parent and promoted
the fluid availability of financial resources between the
various entities.

J Ray McDermott's backlog continues to rise as it benefits from
its leading market position and strong demand for offshore oil
and gas infrastructure.  Moody's expects industry fundamentals
are likely to remain solid into the medium term supporting the
company's prospects for ongoing revenue growth.  As well, J Ray
McDermott continues to demonstrate a disciplined bidding process
evidenced by its favorable operating margins and improving mix
of contracts in its backlog.

The expected growth in operating cash flow supports the ratings
upgrade and maintenance of positive rating momentum.  J Ray
McDermott's good liquidity profile and conservative capital
structure provides further ratings support and mitigates the
downside risk associated with project execution risks and its
concentration of activity in cyclical end markets.

While a portion of J Ray McDermott's growing cash balances and
debt capacity may be used to pursue strategic growth
initiatives, including acquisition activity, Moody's believes J
Ray McDermott has capacity to absorb reasonable amounts of
integration and execution risks within context of its current
rating and outlook.

McDermott International's corporate family rating principally
reflects the operations of Babcock and Wilcox and BWX
Technologies Inc., and includes their intermediate holding
company, McDermott Inc.  Profitability and cash flows have
continued to improve following Babcock and Wilcox's emergence
from an asbestos-related bankruptcy in early 2006 as periodic
restructuring charges and asbestos claims have receded (pro-
forma consolidation of Babcock and Wilcox before Feb 2006).

Moody's expects demand for the company's services are likely to
remain firm through the near term.  Good visibility into this
time horizon is provided by the company's strong market
position, large installed base of equipment and recurring nature
of much of its revenue base as well as current backlog levels.

Moreover, Moody's believes Babcock and Wilcox's growth prospects
may strengthen into the medium term driven by demand for new
power generation and increased customer environmental spending
requirements.  The rating remains tempered by the company's
relatively small size, geographic concentration, and project
execution risk.

Currently strong levels of liquidity and relatively low levels
of leverage provide key offsets to these risks.  Similar to J
Ray McDermott, McDermott International's rating also considers
the potential that it may pursue strategic growth initiatives
through Babcock and Wilcox and BWXT, although Moody's expects
any related expenditures would be undertaken while preserving
its liquidity and capital strengths.

McDermott International, Inc. (NYSE:MDR)
-- http://www.mcdermott.com/--is a leading worldwide energy
services company.  McDermott's subsidiaries provide engineering,
construction, installation, procurement, research,
manufacturing, environmental systems, project management and
facility management services to a variety of customers in the
energy and power industries, including the U.S. Department of
Energy.  The company operates in most major offshore producing
regions throughout the world, including the U.S. Gulf of Mexico,
Mexico, the Middle East, India, the Caspian Sea and Asia
Pacific.  Operations in this segment are primarily conducted
through its subsidiary, J. Ray McDermott, S.A.


MEXORO MINERALS: Gets US$500,000 2nd Payment From Paramount Gold
----------------------------------------------------------------
Mexoro Minerals Ltd. has received additional payment from
Paramount Gold And Silver Corp. of US$500,000 pursuant to its
strategic alliance with the company.  This additional advance
will allow Mexoro to continue with its ongoing drill program on
both its Cieneguita and Guazapares projects.  The funds are
advanced by way of a secured convertible debenture which bears
interest at a rate of 8% per annum for a term of one year.
Paramount will have the option to convert the debt into units as
part of the overall financing.  Along with this additional
advance, Mexoro has agreed to extend the closing deadline of the
strategic alliance transaction until Aug. 5, 2008 with
Paramount's continued commitment to fund Mexoro's operating
expenses.

Paramount Gold and Silver Corp.'s President Chris Crupi said,
“We are pleased to advance additional operating capital to
Mexoro, which will be used towards the co-development of the
Mexican projects, specifically the Guazapares project which lies
in the vicinity of our San Miguel project in Mexico.”

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

                         *     *      *

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


PILGRIM'S PRIDE: Divests Tray-Pack Chicken Biz, Cuts 600 Jobs
-------------------------------------------------------------
Pilgrim's Pride Corporation disclosed plans to consolidate the
tray-pack chicken business from its El Dorado, Arkansas,
processing plant into six other case-ready facilities.  After
the transition, which is expected to be completed within 60
days, the El Dorado facility will operate as a supply plant.

Approximately 600 of the 1,215 positions at the El Dorado plant
will be eliminated by Sept. 19, 2008.  Most of the positions
eliminated will be hourly jobs in chicken processing.  Contract
growers and employees in live operations will not be affected.

Pilgrim's Pride will provide transition programs to employees
whose positions are eliminated to assist them in securing new
employment, filing for unemployment and other applicable
benefits.

"Since March, we have been conducting a thorough review of all
our production facilities to ensure we are operating as
efficiently as possible in response to the unprecedented
challenges facing our company and our industry," Clint Rivers,
Pilgrim's Pride president and chief executive officer," said.

"We are confident that the changes disclosed, which conclude the
formal review of our operations, will help position Pilgrim's
Pride as a stronger competitor," he said.  "By consolidating the
tray-pack volume from El Dorado into our six remaining case-
ready plants, we can position our entire case-ready division to
operate more efficiently."

"As a supply plant, our El Dorado facility will be able to take
full advantage of its efficient live-production cost structure
to help us deliver even better value to our customers," he
concluded.

In April, Pilgrim's Pride acknowledged that the El Dorado plant
was among those being reviewed for possible closure or
consolidation.  Over the past several months, the company had
been working with elected officials and the union representing
members at the plant to improve its financial performance.
However, union members recently rejected proposed benefits
changes that would have made the plant more competitive.

Separately, the company also disclosed plans to close its
distribution center in El Paso, Texas within the next 60 days.
That facility employs approximately 34 people.  After the
closing, Pilgrim's Pride will operate a total of six
distribution centers in Texas, Arizona and Utah.

"While the decision to close or consolidate locations is always
difficult, we believe the actions we are announcing today are
absolutely necessary for our business and our company," said
Mr. Rivers.

The company does not expect to incur any material financial
charges related to the statements.

                      About Pilgrim's Pride

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

                         *     *     *

As reported in the Troubled Company Reporter-Latin America on
July 15, 2008, Moody's Investors Service downgraded the ratings
of Pilgrim's Pride Corporation, including the company's
corporate family rating and probability of default rating to B1
from Ba3.  The rating outlook is stable.  This rating action
concludes the review for possible downgrade begun on April 16,
2008.


SALTON INC: S&P Withdraws Ratings After Proposed Spectrum Deal
--------------------------------------------------------------
Standard & Poor's Ratings Services withdrew its ratings on small
appliance manufacturer Salton Inc. and its wholly owned
subsidiary, Applica Pet Products LLC, including the 'B+'
corporate credit ratings on both entities.  These ratings were
based upon Salton Inc.'s proposed acquisition of the global pet
business from Spectrum Brands Inc. (CCC+/Watch Pos/--). Proceeds
from the proposed bank loan facility to Applica Pet were to
finance the acquisition by Salton.  On July 14, 2006, both
parties announced that it terminated the sale agreement, thus
S&P are withdrawing all related ratings.

Headquartered in Lake Forest, Illinois, Salton Inc. (NYSE:SFP)
-- http://www.saltoninc.com/-- designs, markets and distributes
branded, high-quality small appliances, home decor and personal
care products.  Its product mix includes a range of small
kitchen and home appliances, electronics for the home, time
products, lighting products, picture frames and personal care
and wellness products.  The company has manufacturing facility
in Mexico.


UNITED RENTALS: Waives Indices Condition in Dutch Auction Offer
---------------------------------------------------------------
United Rentals Inc. will waive the condition to its modified
Dutch auction tender offer that states the Dow Jones Industrial
Average and the NASDAQ Composite Index do not decrease at any
point by more than 10% from the close of trading on June 16,
2008.

This condition was triggered as a result of declines in these
market indices.  The company commenced its tender offer, in
which the company is offering to purchase up to 27,160,000
shares of its common stock at a price not less than US$22 nor
greater than US$25 per share, on June 17, 2008.

In connection with the waiver, the company has not revised the
US$22 to US$25 tender offer price range.  The tender offer is
scheduled to expire at 5:00 p.m., Eastern Time, on July 16,
2008, unless extended by the company.

Tenders of shares must be made on or prior to the expiration of
the tender offer and may be withdrawn at any time on or prior to
the expiration of the tender offer, in each case in accordance
with the procedures described in the tender offer materials.
The tender offer is subject to a number of terms and conditions,
but is not conditioned on receipt of financing or any minimum
number of shares being tendered.

In connection with the waiver of the market indices movement
condition, the company also amended this condition so that it is
only triggered in the future in the event specified market
indices drop by more than 15% from the close of trading on
June 16, 2008.

The waiver of the market indices movement condition is not a
waiver of any other condition or a waiver with respect to any
other facts or circumstances.  The tender offer remains subject
to the satisfaction of the other conditions set forth in the
tender offer materials, well as the company's right to amend the
terms of the tender offer in the manner and upon the terms set
forth in the tender offer materials.

                    About United Rentals

Headquartered in Greenwich, Connecticut, United Rentals Inc.
(NYSE: URI) -- http://www.unitedrentals.com/ -- is an equipment
rental company with an integrated network of over 690 rental
locations in 48 states, 10 Canadian provinces and Mexico.  The
company's approximately 10,900 employees serve construction and
industrial customers, utilities, municipalities, homeowners and
others.  The company offers for rent over 20,000 classes of
rental equipment with a total original cost of US$4.2 billion.

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 17, 2008, Fitch Ratings affirmed the long-term issuer
default rating for United Rentals (North America) Inc. at 'BB-'
and downgraded parent company, United Rentals Inc. IDR to 'B+'
from 'BB-'.  Approximately US$2.6 billion in debt was affected
by this rating action.  The rating action follows the company's
statement that it had repurchased all of its preferred stock for
US$679 million and intends to repurchase US27.16 million shares
of common stock.



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

ADELPHIA COMMS: Settles General Dynamics' US$34 Million Claim
-------------------------------------------------------------
Adelphia Communications Corp. and its debtor-affiliates ask the
U.S. Bankruptcy Court for the Southern District of New York to
authorize and approve a settlement agreement they entered into
with General Dynamics Government Systems Corp. and Amroc
Investments, LLC, the subsequent purchaser of General Dynamics'
Claim No. 89100.

Devon Mobile Communications, L.P., entered into a Master
Services Agreement with General Dynamics.  Adelphia
Communications Corporation, owning 49.9% of limited partnership
of Devon, guaranteed the payment of Devon's obligations under
the Agreement.  However, due to the cessation of the Reorganized
Debtors' funding, Devon failed to pay General Dynamics who then
filed Claim No. 89100 against the Reorganized Debtors for
US$34,908,731.

After engaging in extensive negotiations, the parties stipulate
that:

   a) Claim No. 89100 will be allowed as an other unsecured
      claim against ACOM for US$30,568,000;

   b) Within 25 days after the Court's approval of the
      Settlement Agreement, the Reorganized Debtors will cause
      all distributions due to Amroc on account of Claim No.
      89100 to be made other than the distributions of CVV
      Interests.  The distribution of CVV Interests will be made
      in August 2008;

   c) Amroc and the Reorganized Debtors will exchange mutual
      releases.

By entering into the Settlement, the Reorganized Debtors note
that they will avoid all possible costs that would be incurred
if the disputes were to be fully litigated in court.

                      About Adelphia Comms

Based in Coudersport, Pennsylvania, Adelphia Communications
Corporation (OTC: ADELQ) -- http://www.adelphia.com/--
is a cable television company.  Adelphia serves customers in 30
states and Puerto Rico, and offers analog and digital video
services, Internet access and other advanced services over its
broadband networks.  The company and its more than 200
affiliates filed for Chapter 11 protection in the Southern
District of New York on June 25, 2002.  Those cases are jointly
administered under case number 02-41729.  Willkie Farr &
Gallagher represents the Debtors in their restructuring efforts.
PricewaterhouseCoopers serves as the Debtors' financial advisor.
Kasowitz, Benson, Torres & Friedman, LLP, and Klee, Tuchin,
Bogdanoff & Stern LLP represent the Official Committee of
Unsecured Creditors.

Adelphia Cablevision Associates of Radnor, L.P., and 20 of its
affiliates, collectively known as Rigas Manged Entities, are
entities that were previously held or controlled by members of
the Rigas family.  In March 2006, the rights and titles to these
entities were transferred to certain subsidiaries of Adelphia
Cablevision LLC.  The RME Debtors filed for chapter 11
protection on March 31, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10622
through 06-10642).  Their cases are jointly administered under
Adelphia Communications and its debtor-affiliates' chapter 11
cases.

The Bankruptcy Court confirmed the Debtors' Modified Fifth
Amended Joint Chapter 11 Plan of Reorganization on Jan. 5, 2007.
That plan became effective on Feb. 13, 2007.  (Adelphia
Bankruptcy News, Issue No. 188; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000)


NBTY INC: Completes US$371MM Acquisition of Leiner Health Assets
----------------------------------------------------------------
NBTY Inc. completed the purchase of substantially all of the
assets of Leiner Health Products Inc. for approximately
US$371 million.  The terms of the Asset Purchase Agreement
provide for various working capital adjustments.

As reported in the Troubled Company Reporter on June 16, 2008,
the U.S. Bankruptcy Court for the District of Delaware
authorized Leiner Health Products Inc. and its debtor-affiliates
to sell substantially all of their assets to NBTY Acquisition
LLC, including the assumption and assignment of certain
executory contracts and unexpired leases.

As reported in the Troubled Company Reporter on June 12, 2008,
NBTY submitted the best and highest bid at an auction for the
purchase of substantially all of its assets on June 9, 2008.

NBTY is acquiring substantially all of Leiner's assets,
including its U.S. store brand vitamins, minerals and
supplements products as well as Vita Health Products Inc.,
Leiner's Canadian subsidiary.

Moelis & Company LLC provided advisory services and Farrell
Fritz, P.C. provided legal advice in connection with the
acquisition.

“The Leiner acquisition will further enhance our manufacturing
capabilities and dominant market presence as the worldwide
leader in the nutritional supplement industry,” Scott Rudolph,
NBTY chairman and CEO, said.  “NBTY's history of successful
strategic acquisitions reflects our commitment to generating
growth, providing the highest quality service to our customers
and increasing shareholder value.”

                      About Leiner Health

Based in Carson, California, Leiner Health Products Inc. --
http://www.leiner.com/-- manufacture and supply store brand
vitamins, minerals and nutritional supplements products, and
over-the-counter pharmaceuticals in the US food, drug and mass
merchant and warehouse club retail market.  In addition to their
primary VMS and OTC products, they provide contract
manufacturing services.  During the fiscal year ended March 31,
2007, the VMS business comprised approximately 61% of net sales.
On March 20, 2007, they voluntarily suspended the production and
distribution of all OTC products manufactured, packaged or
tested at its facilities in the US.

                        ABOUT NBTY Inc.

NBTY Inc. (NYSE: NTY) -- http://www.NBTY.com/-- manufactures,
markets and distributes line of quality nutritional supplements
in the United States and throughout the world.  Under a number
of NBTY and third party brands, the company offers over 22,000
products.  As of Sept. 30, 2005, it operated 542 Vitamin World
and Nutrition Warehouse retail stores in the United States,
Guam, Puerto Rico, and the Virgin Islands.

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
July 14, 2008, Moody's Investors Service assigned a Ba1 to
US$300 million senior secured term loan of NBTY, Inc.  Moody's
also changed the company's rating outlook to stable from
positive, and lowered its senior subordinated notes to B1 from
Ba3.


As reported in the Troubled Company Reporter-Latin America on
July 11, 2008, Standard & Poor's Ratings Services affirmed its
'BB' long-term corporate credit rating on Ronkonkoma, New York-
based NBTY Inc.  In addition, S&P assigned bank loan and
recovery ratings to the company's US$625 million senior secured
credit facility that includes a proposed US$300 million first-
lien term loan A due 2013, which will be added on to the
company's existing US$325 million revolver due 2011.  The
US$625 million senior secured facility is rated 'BBB-', two
notches above the corporate credit rating, with a recovery
rating of '1', indicating an expectation of very high (90%-100%)
recovery in the event of a payment default.


R&G FIN'L: Subsidiaries Get Termination Notice From Federal Home
----------------------------------------------------------------
R&G Financial Corporation reported that its wholly-owned Puerto
Rican mortgage subsidiary, R&G Mortgage Corporation and R-G
Premier Bank, and its wholly-owned chartered commercial bank, R-
G Premier Bank, have received notices from the Federal Home Loan
Mortgage Corporation of immediate termination of their
respective eligibility to sell mortgages to and service
mortgages for Federal Home.  Federal Home indicated that it has
taken these actions due to its concerns regarding the entities'
ability to continue to act as servicer and to meet their
obligations to Federal Home, among other reasons.

As of June 30, 2008, Federal Home servicing amounted to
approximately 42% of R&G Mortgage's servicing portfolio, and the
R&G Financial Corp. estimates that an additional 25-30% of the
servicing portfolio could be impacted due to contractual
commitments related to Federal Home seller-servicer status.  The
parent company intends to cause each of R&G Mortgage and Premier
Bank to file appeals with Federal Home.  Additionally, on July
14, 2008, R&G Financial Corp. successfully obtained a temporary
restraining order from the United States District Court
precluding the effect of these terminations.  The temporary
restraining order will remain in effect until a hearing is held
later this month to consider the entry of a preliminary
injunction against the terminations while R&G Mortgage and
Premier Bank pursue the Federal Home appeals process.  No
assurance can be given that these efforts will be successful.
Additionally, R&G Mortgage has received a letter from the
Government National Mortgage Association advising that R&G
Mortgage is in default under its agreements with the mortgage
association due to its failure to provide audited financial
statements for 2005.

By Aug. 7, 2008, R&G Mortgage must provide a detailed
description of its plan for resolving this violation or in the
alternative selling its Government National Mortgage Association
servicing portfolio and withdrawing from its programs, or face
adverse action from the mortgage association.  If R&G Financial
Corp. and its subsidiaries are unable to prevent these
terminations, there will be a material adverse impact on the
parent company and its operations.  As previously announced, the
R&G Financial Corp. continues to explore its strategic options.

Headquartered in San Juan, Puerto Rico, R&G Financial Corp.
(PNK: RGFC.PK) -- http://www.rgonline.com/-- is a financial
holding company with operations in Puerto Rico and the United
States, providing banking, mortgage banking, investments,
consumer finance and insurance through its wholly owned
subsidiaries, R-G Premier Bank, R-G Crown Bank, R&G Mortgage
Corporation, Puerto Rico's second largest mortgage banker, R-G
Investments Corporation, the company's Puerto Rico broker-
dealer, and R-G Insurance Corporation, its Puerto Rico insurance
agency.  At June 30, 2006, the company operated 37 bank branches
in Puerto Rico, 36 bank branches in the Orlando, Tampa/St.
Petersburg and Jacksonville, Florida and Augusta, Georgia
markets, and 44 mortgage offices in Puerto Rico.



                            ***********

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

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

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

                            ***********


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

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

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

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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