TCRLA_Public/080808.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

            Friday, August 8, 2008, Vol. 9, No. 157

                            Headlines


A R G E N T I N A

GAS NATURAL BAN: Parent to Sell 19.6% Stake to Chemo for US$56MM
PETROBRAS ENERGIA: Controller Pays Dividends in Advance
PETROBRAS ENERGIA: Reports ARS523 Million in Second Quarter 2008


B E L I Z E

CONTINENTAL AIRLINES: Reports July 2008 Aviation Performance


B E R M U D A

FOSTER WHEELER: Earns US$160.8 Million in 2008 Second Quarter
FOSTER WHEELER: Raymond Milchovich to Retire as CEO Next Year
NEW CAP: NY Court to Consider Scheme of Arrangement on August 12
ONEBEACON INSURANCE: A.M. Best Rates Preferred Securities at BB+
SYNCORA HOLDINGS: Moody's Confirms Junk Ratings; Neg. Outlook

XL CAPITAL: A.M. Best Rates US$500 Mil. Preference Shares at BB+
XL CAPITAL: A.M. Best Removes BB+ Rating on Mangrove Bay Trust


B R A Z I L

BANCO FIBRA: S&P Holds Counterparty Credit Rating at BB-/Stable
BANCO INDUSTRIAL: Earns BRL104.7 Million in Second Quarter 2008
BANCO NACIONAL: President Lula Inks Decree to Form Amazon Fund
BRASKEM SA: Net Income Up 36% to BRL383 Million in 2nd Qtr. 2008
DELPHI CORP: GM Says Delphi-Related Charges Reach US$11 Billion

DELPHI CORP: Court Rejects Appaloosa Bid to Dismiss Lawsuit
DELPHI CORP: Court Extends Plan-Filing Deadline to October 31
GENERAL MOTORS: Overall Truck Sales Decline 41.5% in July
GENERAL MOTORS: Says Delphi-Related Charges Reach US$11 Billion
GENERAL MOTORS: Can Participate in Delphi Suit vs. Appaloosa

GERDAU AMERISTEEL: Books US$262.1MM Net Income in 2nd Qtr. 2008
GERDAU SA: Reports BRL2.12 Billion Net Income in Second Quarter
GLOBAL CROSSING: Provides Network Service to Energias do Brasil
GOL LINHAS: Cuts Fleet Plan in Line With Modernization Strategy
ULTRAPAR PARTICIPACOES: Reports BRL104 Mln Net Income in 2Q 2008


C A Y M A N  I S L A N D S

MARK & SOAMES: Holding Final Shareholders Meeting on Aug. 11
ORIGIN INVESTORS: Proofs of Claim Filing Deadline Is Aug. 9
PARMALAT SPA: NJ Court Denies Citigroup Bid to Dismiss Claims
PARMALAT SPA: Appeals Court Denies Bid to Bar Class Action Suit
PARMALAT SPA: Italian Ct. Starts Trial Against Tanzi, 53 Others

RETAIL REINSURANCE: Final Shareholders Meeting Is on Aug. 11
SPEEDER FUND: To Hold Final Shareholders Meeting on Aug. 11
WINJACK LIMITED: Sets Final Shareholders Meeting on Aug. 11


M E X I C O

GRUPO POSADAS: Fitch Affirms BB Rating on Senior Notes Due 2011
SEMGROUP LP: May Draw US$150 Million From BofA's DIP Financing
SHARPER IMAGE: Withdraws Request for Aug. 18 Claims Bar Date
SHARPER IMAGE: U.S. Trustee Opposes Letter Agreement With Hilco
SHARPER IMAGE: Prohov Wants Cardholders' Claim Declared Priority


P U E R T O  R I C O

DELTA AIR: Adds Non-Stop Atlanta-Puerto Rico Flights
JETBLUE AIRWAYS: To Defer Delivery of 10 EMBRAER 190 Aircraft


T R I N I D A D  &  T O B A G O

HINDU CREDIT: Chief Stands by Claim on Resuming Control of Firm
HINDU CREDIT: Inspection Team Finds Breaches in Loan Policies
NEAL & MASSY: Non-Functional, Says T&T Credit


* LatAm Credit Trends Strong But Challenges Are Ahead, S&P Says
* S&P Downgrades Unlikely for LatAm, Central America & Caribbean


                         - - - - -


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

GAS NATURAL BAN: Parent to Sell 19.6% Stake to Chemo for US$56MM
----------------------------------------------------------------
Spain's Gas Natural SDG, S.A., will sell a 19.6% stake in Gas
Natural Ban S.A. to Argentine pharmaceutical group Chemo for
US$56 million, Mercopress reports.

Mercopress relates that Gas Natural SDG said it would keep a
controlling stake of 50.4% in Gas Natural BAN under the deal.
According to the report, Gas Natural SDG said the deal “is
subject to due diligence being completed”.

Gas Natural SDG said, “With this agreement the company has
gained an Argentine partner in its Gas Natural BAN affiliate.”
Mercopress notes that Gas Natural SDG supports having local
partners for “better implementation in all countries where it
has businesses”.

According to Mercopress, Gas Natural will sell up to US$4.68
billion of assets as part of its EUR16.8 billion takeover bid
for its rival, Union Fenosa.

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

                          *    *     *

As reported in the Troubled Company Reporter-Latin America on
June 24, 2008, Moody's Latin America assigned a B2 global local
currency and a A1.ar national scale rating to Gas Natural Ban
S.A.'s proposed Class 2 ARS Notes up to ARS150 million with a
stable outlook.


PETROBRAS ENERGIA: Controller Pays Dividends in Advance
-------------------------------------------------------
Petrobras Energia Participaciones S.A., the controlling company
of Petrobras Energia S.A., reports that at a meeting held on
Aug. 5, 2008, the company's Board of Directors unanimously
approved the distribution of the amount of ARS238,815,269 for
dividends paid in advance, representing ARS0.112012387 per
share.

Cash dividends will be made available to shareholders within 30
days counted as from approval date, pursuant to the Buenos Aires
Stock Exchange and the National Securities Commission
Regulations.

             About Petrobras Energia Participaciones

Argentina-based Petrobras Energia Participaciones S.A. (Buenos
Aires: PBE, NYSE:PZE) a holding company that operates through
its subsidiaries.  The company's principal assets is 75.8% of
the equity interest of Petrobras Energia S.A., an integrated
energy company, focused in oil and gas exploration and
production, refining, petrochemical activities, generation,
transmission and distribution of electricity and sale and
transmission of hydrocarbons.

                   About Petrobras Energia

Headquartered in Buenos Aires, Argentina, Petrobras Energia S.A.
-- http://www.petrobras.com.ar/-- is an integrated company
engaged in energy sector.  The company's activities are divided
into four segments.  The oil and gas exploration and production
segment is responsible for the acquisition, exploration and
maintenance of oil and gas reserves, as well as the production
of fuels.  The refining and distribution segment is engaged in
the refining of crude oils and their processing into lubricants.
It is represented by Refineria del Norte SA and Empresa
Boliviana de Refinacao SA.  The petrochemistry segment is
engaged in the production of styrene, polystyrene, rubber,
fertilizers and polypropylene through Innova SA and Petroquimica
Cuyo SA.  The gas and energy segment is involved in the
production of gas and electric energy, and energy transportation
through Transportadora de Gas del Sur SA.  The company also
operates in Bolivia, Ecuador, Peru, Colombia and Venezuela.

                        *     *     *

In October 2007, Moody's Investors Service assigned a 'Ba1'
issuer rating on Petrobras Energia S.A.

In April 2007, Standard & Poor's assigned a 'BB' long-term
foreign issuer credit rating on the company.

In May 2007, Fitch Ratings assigned a 'BB' long-term foreign
currency issuer default rating on the company.


PETROBRAS ENERGIA: Reports ARS523 Million in Second Quarter 2008
----------------------------------------------------------------
Petrobras Energia S.A.'s net income for the second quarter ended
June 30, 2008, was ARS523 million, accounting for a
ARS385 million increase compared to ARS128 million in 2007
second quarter.

Petrobras Energia's 2008 quarter net sales increased
ARS347 million to ARS1,459 million, basically due to a rise in
oil average sales prices, in line with the increase in
international reference prices, partially offset by a decline in
oil and gas sales volumes.

In 2008 quarter, daily sales volumes of oil equivalent decreased
10% to 115,4 thousand barrels, mainly due to the sale of the 40%
interest in Lote X, in December 2007, which interest accounted
for an average of 6,300 barrels of oil equivalent per day in
2007 quarter, and to the decline in production from operations
in Argentina.  These effects were partially offset by the
increase in sales in Ecuador after crude oil shipments postponed
in 2008 first quarter returned to normal.

Crude oil sales rose 35.8% to ARS1,319 million in 2008 quarter,
as a consequence of a 49.6% increase in average sales prices,
mainly in Ecuador and Peru, in line with international reference
prices.  This was partially offset by a 9.2% decrease in sales
volumes.

Gas sales slightly decreased 3.6% to ARS133 million in 2008
quarter, as a result of a 10.9% drop in sales volumes, partially
offset by an 8.2% increase in sales prices, mainly in Bolivia
and Peru, in line with international reference prices.  Reduced
sales volumes are mainly attributable to the effects of labor
strikes in 2008 quarter and, to a lesser extent, the decline in
production from fields in Argentina.

Gross profit increased ARS365 million to ARS881 million in 2008
quarter.  The margin on sales rose to 60.4% in 2008 quarter from
46.4% in 2007 quarter.  This improvement is basically due to
operations in Ecuador, mainly as a result of improved sales
prices and, to a lesser extent, to the fact of not considering
the effects of Law 42/2006 for inapplicability reasons.
Other operating income (expense), net accounted for
ARS63 million and ARS42 million losses in 2008 and 2007
quarters, respectively.  Expenses in both quarters are primarily
attributable to costs associated with the unused transportation
capacity under the contract with Oleoducto de Crudos Pesados
S.A. in Ecuador, which accounted for ARS42 million and
ARS47 million losses in 2008 and 2007 quarters, respectively.

Net sales of refined products rose ARS414 million to
ARS1,809 million in 2008 quarter, mainly due to higher sales
prices attributable to the partial price recovery in the
Argentine domestic market and the increase in international
reference prices for products not subject to the price control
measures and, to a lesser extent, the start of commercialization
of crude oil which accounted for additional sales in the amount
of ARS120 million in 2008 quarter.

In 2008 quarter, diesel oil grew 3.9% to 626 thousand cubic
meters.  Fuel oil sales volumes increased 13% mainly as a result
of increased domestic demand to supply power plants.  Total
sales volumes of other related oil products decreased 17.2% to
263 thousand cubic meters, mainly as a consequence of changes in
the product mix.

Crude oil volumes processed averaged 72.3 thousand barrels per
day in 2008 quarter, accounting for a 5.5% drop compared to 2007
quarter.  This decline was attributable to the shutdown at San
Lorenzo Refinery for scheduled maintenance works and, to a
lesser extent, to logistical limitations relating to refined
crude oil deliveries due to road blockades nationwide as a
consequence of protests led by the Argentine farm sector.
Operating income accounted for ARS105 million and ARS104 million
losses in 2008 and 2007, respectively.  In 2007 quarter, the
business segment margins were adversely affected by the anti-
inflationary price control measures implemented in Argentina.
In 2008 quarter, the slight increases in fuel prices were offset
by the losses derived from diesel oil imports (84 thousand cubic
meters) to meet domestic demand, according to the provisions of
Resolution No. 25/2006 issued by the Department of Trade, and by
the significant increase in withholding rates applicable to
refined product exports effective as from 2007 fourth quarter.

Net sales rose ARS113 million to ARS814 million in 2008 quarter,
mainly due to the improvement in sales prices in line with the
increase in international reference prices.

Total styrenics sales in Argentina increased ARS26 million to
ARS295 million in 2008 quarter, as a result of a 23.8% rise in
average sales prices, in line with international reference
prices, partially offset by a 11.4% drop in sales volumes.  The
decline in sales volumes is mainly attributable to logistical
limitations relating to product deliveries due to road blockades
nationwide as a consequence of the protests led by the Argentine
farm sector, and reduced exports, mainly ethylbenzene sent to
Innova and rubber.

Styrenics sales in Brazil rose ARS60 million to ARS426 million
in 2008 quarter, basically due to a 15.7% price improvement.
Sales volumes were similar in both quarters.

Fertilizers sales increased ARS9 million to ARS112 million in
2008 quarter, as a result of a 57.5% rise in sales prices, in
line with international reference prices, partially offset by a
31% decrease in sales volumes, basically attributable to a delay
in sales derived from the farm protests and, to a lesser extent,
adverse weather conditions during 2008 quarter.

Gross profit increased ARS80 million to ARS165 million in 2008
quarter and gross margin on sales rose to 20.3% in 2008 quarter
from 12.1% in 2007 quarter, primarily due to the improvement in
sales prices mentioned above.

Hydrocarbon Marketing and Transportation

Sales revenues decreased ARS13 million to ARS214 million in 2008
quarter, mainly due to reduced gas and LPG brokerage services,
which accounted for ARS9 million sales revenues in 2008 quarter
and ARS40 million in 2007 quarter, partially offset by increased
revenues from gas and liquid fuels sales.

Gas sales revenues rose ARS12 million to ARS130 million in 2008
quarter, primarily due to an increase in sales volumes,
partially offset by a decline in average sales prices.  Sales
volumes increased 52.6% to 406.1 million cubic feet per day, due
to a higher demand for gas and increased commitments to
supplying the domestic market, mainly residential consumption.
Reduced average sales prices result from changes in the sales
mix, with a higher share of residential consumption with
significantly lower prices.
Gross profit accounted for a ARS15 million loss in 2008 quarter
compared to a ARS25 million gain in 2007 quarter.  Negative
gross margins in 2008 quarter are mainly attributable to the
combined effect of a decline in average sales prices, derived
from the higher share of residential consumption, and the
increase in gas costs due to increased sales in the spot market
to offset the lower availability of gas produced by the company.

Electricity

Net sales of electricity generation rose ARS40 million to
ARS162 million in 2008 quarter, due to the combined effect of a
18.6% improvement in energy average prices and a 12% increase in
sales volumes.  The increase in sales prices is mainly
attributable to the combined effect of changes in the sales mix,
with a higher share of sales under contract, the renegotiation
of contracts at higher prices and increased prices in the spot
market as a result of energy deliveries by less efficient power
plants to make up for the decrease in hydraulic supply, for the
purpose of restoring the levels of water stored in hydroelectric
power plants.

Net sales attributable to Genelba Power Plant increased
ARS35 million to ARS132 million in 2008 quarter, due to the
combined effect of a 18.4% rise in average sales prices to
ARS106.8 per megawatt-hour  in 2008 quarter, and a 16.2%
increase in energy sales to 1,236 GWh in 2008 quarter compared
to 1,064 GWh in 2007 quarter, when the plant availability was
affected by the shutdown for major scheduled maintenance works.
Net sales attributable to Pichi Picun Leufu Hydroelectric
Complex rose ARS5 million to ARS30 million in 2008 quarter,
mainly due to a 24.2% improvement in sales average prices.
Energy delivered was similar in both quarters (280 GWh and 290
GWh in 2008 and 2007 quarters, respectively).

Headquartered in Buenos Aires, Argentina, Petrobras Energia S.A.
-- http://www.petrobras.com.ar/-- is an integrated company
engaged in energy sector.  The company's activities are divided
into four segments.  The oil and gas exploration and production
segment is responsible for the acquisition, exploration and
maintenance of oil and gas reserves, as well as the production
of fuels.  The refining and distribution segment is engaged in
the refining of crude oils and their processing into lubricants.
It is represented by Refineria del Norte SA and Empresa
Boliviana de Refinacao SA.  The petrochemistry segment is
engaged in the production of styrene, polystyrene, rubber,
fertilizers and polypropylene through Innova SA and Petroquimica
Cuyo SA.  The gas and energy segment is involved in the
production of gas and electric energy, and energy transportation
through Transportadora de Gas del Sur SA.  The company also
operates in Bolivia, Ecuador, Peru, Colombia and Venezuela.

                        *     *     *

In October 2007, Moody's Investors Service assigned a 'Ba1'
issuer rating on Petrobras Energia S.A.

In April 2007, Standard & Poor's assigned a 'BB' long-term
foreign issuer credit rating on the company.

In May 2007, Fitch Ratings assigned a 'BB' long-term foreign
currency issuer default rating on the company.



===========
B E L I Z E
===========

CONTINENTAL AIRLINES: Reports July 2008 Aviation Performance
------------------------------------------------------------
Continental Airlines disclosed in a regulatory SEC filing Friday
its performance for July 2008.

The company reported a July consolidated (mainline plus
regional) load factor of 84.2 percent, 2.2 points below the July
2007 consolidated load factor, and a mainline load factor of
85.3 percent, 1.7 points below the July 2007 mainline load
factor.  In addition, the carrier reported a domestic mainline
July load factor of 85.5 percent, 2.5 points below the July 2007
domestic mainline load factor, and an international mainline
load factor of 85.0 percent, 1.0 point below July 2007.

During the month, Continental recorded a U.S. Department of
Transportation on-time arrival rate of 76.1 percent and a
mainline segment completion factor of 99.1 percent.

In July 2008, Continental flew 9.2 billion consolidated revenue
passenger miles (RPMs) and 10.9 billion consolidated available
seat miles (ASMs), resulting in a consolidated traffic increase
of 1.6 percent and a capacity increase of 4.3 percent as
compared to July 2007.  In July 2008, Continental flew
8.3 billion mainline RPMs and 9.7 billion mainline ASMs,
resulting in a mainline traffic increase of 1.1 percent and a
mainline capacity increase of 3.2 percent as compared to July
2007.  Domestic mainline traffic was 4.2 billion RPMs in July
2008, down 1.7 percent from July 2007, and domestic mainline
capacity was 4.9 billion ASMs, up 1.2 percent from July 2007.

For July 2008 both consolidated and mainline passenger revenue
per available seat mile (RASM) are estimated to have increased
between 4.5 and 5.5 percent compared to July 2007.  For June
2008, consolidated passenger RASM increased 4.1 percent compared
to June 2007, while mainline passenger RASM increased 3.5
percent compared to June 2007.

Continental's regional operations had a July load factor of 76.0
percent, 5.5 points below the July 2007 regional load factor.
Regional RPMs were 935.8 million and regional ASMs were 1,231.6
million in July 2008, resulting in a traffic increase of 6.0
percent and a capacity increase of 13.7 percent versus July
2007.

At June 30, 2008, the company's consolidated balance sheet
showed US$13.8 billion in total assets, US$12.1 billion in total
liabilities, and US$1.7 billion in total stockholders' equity.

                   About Continental Airlines

Based in Houston, Texas, Continental Airlines Inc. (NYSE: CAL)
-- http://continental.com/-- is the world's fifth largest
airline.  Continental, together with Continental Express and
Continental Connection, has more than 3,000 daily departures
throughout the Americas, including Belize and Mexico, Europe and
Asia, serving 140 domestic and 139 international destinations.
More than 550 additional points are served via SkyTeam alliance
airlines.  With more than 46,000 employees, Continental has hubs
serving New York, Houston, Cleveland and Guam, and together with
Continental Express, carries approximately 69 million passengers
per year.

                         *     *     *

The Troubled Company Reporter said May 21, 2008, that Moody's
Investors Service affirmed the B2 Corporate Family Rating of
Continental Airlines Inc. as well as the ratings of its
outstanding corporate debt instruments and selected classes of
Continental's Enhanced Equipment Trust Certificates.  The
Speculative Grade Liquidity rating was lowered to SGL-3 from
SGL-2.  The outlook has been changed to negative from stable.

As reported by the Troubled Company Reporter on April 22, 2008,
Standard & Poor's Ratings Services revised its rating outlook on
Continental Airlines Inc. (B/Negative/B-3) to negative from
stable.  S&P also placed its ratings on selected enhanced
equipment trust certificates that are secured by regional jets
on CreditWatch with negative implications.

As reported in the Troubled Company Reporter on Dec. 27, 2007,
Fitch Ratings affirmed Continental Airlines 'B-' issuer default
rating with a stable outlook.



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

FOSTER WHEELER: Earns US$160.8 Million in 2008 Second Quarter
-------------------------------------------------------------
Foster Wheeler Ltd. reported record net income for the second
quarter of 2008 of US$160.8 million, compared to net income of
US$71.9 million in the same quarter of 2007.  Net income in the
second quarter of 2008 included a net asbestos-related gain of
US$18.3 million.  Excluding this item, net income in the second
quarter of 2008 was a record US$142.5 million.

Second-quarter 2008 consolidated EBITDA (earnings before
interest expense, income taxes, depreciation and amortization)
was a record US$220.4 million, compared with US$118.6 million in
the second quarter of 2007.  Excluding the net asbestos-related
gain, consolidated EBITDA in the second quarter of 2008 was
US$202.2 million.

Commenting on the company’s quarterly results, Foster Wheeler’s
Chairman and Chief Executive Officer, Raymond J. Milchovich,
said, “The record-level of EBITDA in both of our business groups
was the result of continued strong demand and excellent
execution and commercial practices in all of our operating
units.  In accordance with our previous guidance, the company’s
Global Power Group has continued to generate EBITDA well above
the levels of a year ago, due to robust market activity as well
as the systemic improvements in commercial and operational
practices that this group has achieved over the past two years.
Also notable is the fact that our Engineering and Construction
Group posted exceptional results without reliance on project
incentives or bonuses, which were immaterial during the
quarter.”

Mr. Milchovich noted, “The markets we serve in our E&C business
remain very strong.  In July, for example, the number of man-
hours booked was more than 70% higher than the average monthly
booking rate of the first six months of the year -- and we
expect to have a strong second half in bookings.”

Mr. Milchovich added, “In our GPG business – consistent with our
guidance at the end of the first quarter of this year – we are
seeing delays, but not cancellations, in some North American
prospects.  As we assess the North American market more broadly,
we believe these kinds of delays are likely to be temporary.
Nevertheless, as we have previously indicated, we are aiming to
offset such delays by booking work outside of North America,
where we have long had a very strong presence, as well as
pursuing other prospects in the North American market.  We were
encouraged to see that the contract value of new orders in July
in our GPG business was more than double the average monthly
contract value booked during the first six months of this year –
with international bookings setting the pace.  We expect our GPG
business to post all-time record results in 2008.  Beyond that,
the degree to which GPG will deliver earnings growth in 2009
will depend on how the North American market develops and on our
continued success in booking contracts outside of North
America.”

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

                       *     *     *

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

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


FOSTER WHEELER: Raymond Milchovich to Retire as CEO Next Year
-------------------------------------------------------------
Foster Wheeler Ltd. has been notified by Raymond J. Milchovich,
the company’s Board of Directors, of his intent to retire in
2009 as Chairman and Chief Executive Officer of Foster Wheeler
after his successor is elected and a successful transition has
been completed.

Commenting on his decision, Mr. Milchovich said, “In October of
this year I will complete my seventh year as Chairman and CEO of
Foster Wheeler.  Not only have we accomplished what many have
described as a world-class turnaround, but we have transitioned
Foster Wheeler into what has rapidly become a leading global
engineering and construction contractor and power equipment
supplier delivering technically advanced, reliable facilities
and equipment.  This success simply could not have occurred but
for our extremely talented, experienced, and dedicated
leadership team worldwide and the steady support we consistently
received from our Board of Directors.  These seven years have
been the most gratifying of my career.  Given the magnitude of
what has been accomplished and recognizing the current strength
of our company, the strategic focus we have established, and the
robustness of our markets, I have never been more optimistic
regarding the future of Foster Wheeler.”

James D. Woods, who serves as Foster Wheeler's lead independent
director and is Chairman Emeritus and retired Chief Executive
Officer of Baker Hughes Incorporated, stated, “On behalf of the
Board of Directors, we sincerely appreciate Ray’s leadership,
dedication, and intensity that have transformed the culture of
Foster Wheeler.  During the past seven years, Ray has over-
achieved in every aspect of good management and strategic
positioning.  With regret but respect, we have accepted Ray's
wish to retire, and we appreciate his flexibility to work with a
successor and with the Board to effect a very successful
leadership transition.”

Commenting on the succession process, Mr. Woods added, “The
Board has been very active with Ray and the senior leadership
team conducting a robust succession planning process for all key
leadership positions.  Considering Ray’s advance notice and
flexibility in terms of timing and transition, the Board is
confident that it has the time and resources to attract the
right external candidate to become Ray’s successor and to
position him or her for continued success at Foster Wheeler.
The Board has retained the CEO practice co-leader of executive
search firm Heidrick & Struggles in New York to conduct the
worldwide search and to assist the Board with this process.”

Mr. Milchovich concluded, “In light of the strength and depth of
our worldwide leadership team and the experience and capability
of our Board of Directors, I am confident that Foster Wheeler is
now well positioned to achieve a very successful leadership
transition.  I have tremendous respect for, and loyalty to, our
worldwide client base, our talented and committed employees, our
shareholders, and all other Foster Wheeler stakeholders.
Therefore, I have assured the Board that I will continue to lead
the company with the same dedication, focus, and intensity until
my successor is in place.  I have also assured the Board that I
am prepared to do whatever is required to effect a smooth,
orderly and successful transition.”

“In the meantime,” said Mr. Milchovich, “It's business
as usual
at Foster Wheeler.  My day-to-day role remains unchanged.  In
addition, we continue to have an exceptionally strong President
& COO – Umberto della Sala – who earlier this year signed an
employment agreement through 2011 and who has indicated to the
Board his intention to remain in that position.”

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

                       *     *     *

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

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


NEW CAP: NY Court to Consider Scheme of Arrangement on August 12
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
will consider on Aug. 12, 2008, 10:00 a.m., John Gibbons'
request to give effect in the United States New Cap Reinsurance
Corporation Limited' Scheme of Arrangement and Permanent
Injunction pursuant to Section 304 of the Bankruptcy Code.

The hearing will be held at Alexander Custom House, One Bowling
Green, New York City.

The Scheme of Arrangement was sanctioned by the Supreme court of
New South Wales and was made effective on April 28, 2008.

John Gibbons is the appointed liquidator and scheme
administrator of the Debtor.  Mr. Gibbons proposed that the
Scheme:

  -- will be given full effect in the U.S. and be binding on and
     enforceable against all creditors in the U.S.;

  -- will permanently enjoin all persons and entities from:

     * taking any action in contravention of, or inconsistent
       with the Scheme;

     * seizing, repossessing, transferring. relinquishing or
       disposing of any property of the Debtor in the U.S., or
       the proceeds thereof, to any person or entity other than
       the Scheme administrators;

     * commencing or continuing any action or other legal
       proceedings against the Debtor or any of its property or
       any proceeds, except as provided in the Scheme;

     * enforcing any judicial, administrative or regulatory
       judgment, assessment or order or arbitration award and
       commencing or continuing any act for other legal
       proceeding, permitted in the Scheme; and

     * drawing down any letter of credit established by on
       behalf or at the request of the Debtor, in excess of
       amount expressly authorized by the terms of the contract
       or other agreement.

New Cap Reinsurance Corp. (Bermuda) Ltd. and its New Cap
Reinsurance Corp. Ltd. subsidiary filed chapter 11 petitions in
the U.S. Bankruptcy Court in Manhattan on April 27, 1999, with
the parent estimating both assets and liabilities at over
US$100 million.  The parent company, based in Hamilton, Bermuda,
is engaged in the business of insurance and reinsurance whereas
the Sydney, Australia-based subsidiary, founded in 1997, writes
worldwide casualty, catastrophe, marine, occupational, and
personal insurance policies.

The Supreme Court of Bermuda and the High Court of Justice of
England and Wales sanctioned on Feb. 23, 2006, a Scheme of
Arrangement between New Cap Reinsurance Corporation (Bermuda)
Limited, and the scheme creditors of the company.

Copies of the orders sanctioning the Scheme were delivered to
the registrars of companies in Bermuda and England on the same
day.  The Scheme became effective in both Bermuda and England on
that date.


ONEBEACON INSURANCE: A.M. Best Rates Preferred Securities at BB+
----------------------------------------------------------------
A.M. Best Co. has assigned indicative ratings of “bbb” on senior
debt, “bbb-” on subordinated debt and “bb+” on
preferred stock
and trust preferred securities to OneBeacon Insurance Group Ltd.
and OneBeacon U.S. Holdings Inc.'s recently filed US$1 billion
universal shelf registration.  The outlook assigned to the above
ratings is stable.

The indicative ratings reflect the manageable financial leverage
of OneBeacon Insurance, with debt-to-total capital of 32%
through second quarter 2008 and coverage ratios over a
three-year period that support the assigned debt ratings.
Furthermore, the ratings reflect the group's improved operating
performance over a five-year period and favorable
capitalization.

The operating companies of OneBeacon Insurance Group Ltd. are
consolidated under the OneBeacon Insurance Group which carries
the financial strength rating of A and issuer credit ratings of
“a” are unchanged, and the outlook is stable.

These indicative shelf ratings have been assigned:

OneBeacon U.S. Holdings, Inc. and OneBeacon Insurance Group,
Ltd.:

  -- “bbb” on senior unsecured debt
  -- “bbb-” on subordinated debt
  -- “bb+” on preferred stock

OneBeacon U.S. Holdings Trust I, II and III:

  -- “bb+” on preferred securities

Bermuda-based OneBeacon Insurance Group Ltd. is the ultimate
holding company for OneBeacon U.S. Holdings.  White Mountain
Insurance Group Ltd. owns 75.1% of of OneBeacon Ltd. as of
June 30, 2008.


SYNCORA HOLDINGS: Moody's Confirms Junk Ratings; Neg. Outlook
-------------------------------------------------------------
Moody's Investors Service has placed the B2 insurance financial
strength ratings of Syncora Guarantee Inc., Syncora Guarantee
(U.K.) Ltd., and Syncora Guarantee Re Ltd. on review for
possible upgrade.  In the same rating action, Moody's confirmed
the ratings of Syncora Holdings Ltd.  with a negative outlook.
Moody's also placed the ratings of Twin Reefs Pass-Through Trust
on review with direction uncertain.  This rating action was
prompted by Syncora Holdings' announcement that it has closed on
the previously announced agreement with XL Capital Ltd.
providing for the termination, elimination or commutation of
certain reinsurance, guarantees and other agreements with XL and
its affiliates in return for a payment by XL of US$1.775 billion
in cash and 8 million shares of XL Class A ordinary shares.

Syncora Holdings Ltd. also announced it has closed on the
previously announced agreement with Merrill Lynch & Co., Inc.,
for the termination of eight credit default swaps on ABS CDOs
written by SG in return for a US500 million cash payment to
Merrill Lynch.  Prior to this rating action, the ratings of SG
and SG Re were under review with direction uncertain and the
debt ratings of Syncora Holdings and Twin Reefs were under
review for possible downgrade.

Moody's ratings on securities that are guaranteed or “wrapped”
by a financial guarantor are generally maintained at a level
equal to the higher of a) the rating of the guarantor, or b) the
published underlying rating.

In accordance with current rating agency policy, following
Moody's June 20, 2008 rating action on XL Capital Assurance (now
Syncora Gurantee) and XL Financial Assurance, which lowered
their ratings to below the investment grade level, Moody's
withdrew ratings on SG and SG Re-wrapped securities for which
there was no published underlying rating.  Should the
guarantors' ratings subsequently move back into the investment
grade range or should the agency subsequently publish the
associated underlying rating, Moody's would reinstate previously
withdrawn ratings on those wrapped instruments.

According to Moody's, the review for possible upgrade on the
insurance financial strength ratings of SG and SG Re reflects
the significant improvement to Syncora Holdings' capital
adequacy position and upward pressure on the ratings following
the successful completion of the aforementioned transactions
with XL and Merrill Lynch.  However, Moody's stated that the
insurance financial strength ratings are likely to remain non-
investment grade at the conclusion of its review given the
continued uncertainty with respect to Syncora Holdings'
remaining mortgage-related exposures and currently impaired
franchise.

The confirmation of Syncora Holdings' shelf and preference share
ratings with a negative outlook reflects the positive overall
capital adequacy implications associated with the Master
Agreement and Merrill Agreement and resulting upward pressure on
the insurance financial strength ratings.  However, in Moody's
opinion, the credit profile of the holding company has not
benefited to the same degree.

The change in the direction of the rating review on Twin Reefs,
to review with direction uncertain, from review for possible
downgrade, reflects the potential for upward rating pressure
based on the improvement in the credit profile of the trust's
underlying securities , as well as the possibility that
dividends on these underlying securities could be omitted at
some future date, which could result in a downgrade from the
current Caa2 rating.

The rating agency stated that Syncora Holdings has announced
that it expects to record significant reserve charges on its
mortgage-related exposures during second quarter 2008, including
both second-lien RMBS and ABS CDOs.  This reserving activity
will result in both SG and SG Re reporting negative statutory
capital at quarter-end.  However, the transactions contemplated
by the Master Agreement and the Merrill Agreement will result in
the companies having positive statutory capital and result in a
significant improvement in their capital adequacy positions, in
Moody's opinion.  In addition, Syncora Holdings has announced it
has commuted its outbound reinsurance with RAM Reinsurance
Company Ltd and a portion of inbound reinsurance with Financial
Security Assurance Inc.  The company has also earmarked
US$820 million for the purpose of commuting, terminating,
amending or restructuring existing agreements with certain CDS
bank counterparties who have signed the Master Agreement.

Moody's stated that the ratings review will focus on:

  1) the risk-adjusted capital adequacy positions of SG and SG
     Re;

  2) further clarity with respect to future preferred share
     dividend policy and capacity; and

  3) an assessment of Syncora Holdings' franchise value and
     future business prospects.

With respect to Syncora Holdings' commutation agreement with
Merrill, Moody's stated that the negotiated settlement has some
elements that are typically associated with a distressed
exchange, though such a determination is ultimately a matter of
judgment, and depends on the specific circumstances of the
guarantor as well as the amount of the settlement compared to
the economic value of the hedge.  Based on Moody's evaluation of
these exposures, the settlement amount represents a significant
discount to the capital charges applied in its model.

                   List of Rating Actions

These ratings have been placed on review for possible upgrade:

  -- Syncora Guarantee Inc: insurance financial strength at
     B2;

  -- Syncora Guarantee (U.K.) Ltd: insurance financial strength
     at B2; and

  -- Syncora Guarantee Re Ltd: insurance financial strength at
     B2.

Rating confirmed with a negative outlook:

  -- Syncora Holdings Ltd: provisional rating on senior debt
     at (P)Caa3, provisional rating on subordinated debt at
     (P)Ca and preference shares at Ca.

Rating placed on review with direction uncertain:

  -- Twin Reefs Pass-Through Trust: contingent capital
     securities at Caa2.

Syncora Holdings Ltd. (formerly Security Capital Assurance Ltd.)
is a Bermuda-domiciled holding company whose primary operating
subsidiaries, Syncora Gurantee Inc. (formerly XL Capital
Assurance Inc.) and Syncora Guarantee Re Ltd. (formerly XL
Financial Assurance Ltd.), provide credit enhancement and
protection products to the public finance and structured finance
markets throughout the United States and internationally.


XL CAPITAL: A.M. Best Rates US$500 Mil. Preference Shares at BB+
----------------------------------------------------------------
A.M. Best Co. has assigned a debt rating of “bb+” to XL Capital
Ltd's US$500 million series C preference shares issued in
connection with the company's exercise of the put option under
its Mangrove Bay Pass Through Trust contingent capital facility.
The rating is under review with negative implications.
Concurrently A.M. Best has withdrawn the debt rating of “bb+” on
Mangrove Bay's US$500 million 6.102% trust preferred shares.

These rating actions follow XL Capital's recently announced
capital action plan in response to its agreement with Syncora
Holdings Ltd. (f.k.a Security Capital Assurance Ltd.)

On July 29, 2008, A.M. Best placed all XL Capital financial
strength, issuer credit and debt ratings under review with
negative implications.  The ratings will remain under review
pending the successful completion of the capital action plan
followed by A.M. Best's assessment of the Syncora Holdings
impact on XL Capital's core business franchise and the
containment of any negative effects that may have occurred.

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


XL CAPITAL: A.M. Best Removes BB+ Rating on Mangrove Bay Trust
--------------------------------------------------------------
A.M. Best Co. has assigned a debt rating of “bb+” to XL Capital
Ltd's US$500 million series C preference shares issued in
connection with the company's exercise of the put option under
its Mangrove Bay Pass Through Trust contingent capital facility.
The rating is under review with negative implications.
Concurrently A.M. Best has withdrawn the debt rating of “bb+” on
Mangrove Bay's US$500 million 6.102% trust preferred shares.

These rating actions follow XL Capital's recently announced
capital action plan in response to its agreement with Syncora
Holdings Ltd. (f.k.a Security Capital Assurance Ltd.)

On July 29, 2008, A.M. Best placed all XL Capital financial
strength, issuer credit and debt ratings under review with
negative implications.  The ratings will remain under review
pending the successful completion of the capital action plan
followed by A.M. Best's assessment of the Syncora Holdings
impact on XL Capital's core business franchise and the
containment of any negative effects that may have occurred.

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



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

BANCO FIBRA: S&P Holds Counterparty Credit Rating at BB-/Stable
---------------------------------------------------------------
Standard & Poor's Ratings Services has affirmed its 'BB-'
counterparty credit rating on Banco Fibra S.A.  The outlook is
stable.

“The ratings on Fibra reflect the increasing competition
affecting most Brazilian banks operating in the middle-market
segment, potential higher delinquency rates from larger retail
operations, and the difficulty of improving profitability while
increasing and diversifying the funding base,” said S&P's credit
analyst Marcelo Peixoto.

However, Fibra's adequate asset quality indicators, good track
record in the low-corporate and middle-market segments, and the
benefits to its financial flexibility of belonging to Grupo
Vicunha and maintaining a strategic partnership with
International Finance Corp. help mitigate these risks.

Banco Fibra S.A. -- http://www.bancofibra.com.br/-- is a
commercial midsize Brazilian bank.  Despite its relatively small
market share, Banco Fibra is among the top banks operating in
the small corporates and middle-market companies segment.  Banco
Fibra is the financial arm of a large traditional conglomerate
in Brazil, owned by the Steinbruch family, with important
operations in the textile (Vicunha Txtil; not rated), steel
(Companhia Siderurgica Nacional; BB/Stable/--), and gas (CEGAS;
not rated) sectors.  As of March 30, 2007, Banco Fibra reached
US$215 million in equity and US$4.05 billion in total assets.


BANCO INDUSTRIAL: Earns BRL104.7 Million in Second Quarter 2008
---------------------------------------------------------------
Banco Industrial e Comercial S.A., a.k.a. BICBANCO, disclosed
its results for the 2nd quarter of 2008 (2Q08).  The bank's net
income was BRL104.7 million in the 2Q08, surpassing the
BRL91.9 million recorded in the first quarter 2008 (1Q08) by
13.9%.

In the second quarter 2008, Return on Average Equity was 27.5%
and Return on Average Assets was 3.7%.  Net Income for the first
half of the year (1H08) totaled BRL196.6 million.

Time deposits amounted to BRL5.3 billion in 2Q08, a 69.9% rise
in relation to 2Q07.  Total funding rose from BRL7.7 billion in
1Q08 to BRL8.9 billion in 2Q08 as a result of the increase in
deposits and external funding.

The efficiency ratio was 34.8% in 2Q08, a 2.1 p.p. improvement
in comparison to 1Q08.  The 4.6% increase in costs,
proportionately lower than the 11.0% increase in revenues,
explains this performance.

Milto Bardini, BICBANCO's Vice President of Operations and
Investor Relations Officer, commented, “Concerns about the
subprime crisis eased -– although not completely -– throughout
2Q08.  This change allowed credit activities to once more
fulfill the demand, which remained high in the period.
Consequently, our Credit Portfolio reached BRL9.2 billion in
late June 2008.  In turn, the bank's main funding source, Time
Deposits, which had risen by 17.8% in the first quarter,
increased by another 16.3% in 2Q08 and recorded a 69.9% rise in
comparison to June of last year.  The boost in the spreads of
asset operations, which started early in the year, remained at
the March levels throughout 2Q08, practically 2 p.p. higher than
those in December 2007.  The costs of Time Deposits have risen
by about 0.6% per annum.  Accordingly, as regards balance, the
Credit Portfolio is being renewed with net spreads 1.4% higher
than those of late 2007.”

Mr. Bardini said, “As a consequence of the situation described
above, in terms of both amounts and conditions, the
BRL104.7 million income in 2Q08 led to an ROAE of 27.5%, whereas
the Efficiency Ratio came to 34.8%, both figures in line with
the performance expected for 2008.  If, on the one hand, 2Q08
results were positively affected by the adjustment of the Social
Contribution rate for the late 2007 stock of Tax Credits, they
were, on the other hand, considerably impacted by marks to
market of Swaps basically related to external funding. These
expenses will be reversed, at the latest when the operations
that resulted in them mature.  Management firmly believes that
operating conditions will remain the same in spite of the
combined pressure of higher inflation and rising interest rates.
This scenario allows projections of a similar performance in the
coming quarters.”

                 Economic Environment During the
                       2nd Quarter of 2008

Despite the rises in the Selic rate from April onwards, from
11.25% to 13.0% in July, the Brazilian economy continued to grow
at the same pace in the industrial, domestic and foreign trade,
and agricultural sectors.  The demand for credit remained very
high, highlighting credit for corporations.

Funding costs in Reais, especially Bank Deposit Certificates
(CDBs), remained at the March 2008 levels. External funding
reflected the unstable world economy, without a clear trend, and
with few windows of opportunity and shorter maturities.
Brazilian inflation rose throughout 2008, as a result of both
rising domestic consumption and the world inflation, impacted by
higher commodity prices.  Even though inflation is slightly
above target, the successive increases in the Selic rate still
have not produced results in the period.  These, however, are
expected in the coming quarters.

                           Performance

ROAE increased to 27.5%, and the efficiency ratio was 34.8% in
2Q08.  The bank's ROAE was 25.5% and efficiency ratio 35.8% in
the first half of 2008. These important performance indicators
reflect the gains in scale that a higher credit portfolio brings
forth when coupled with high quality credit risks, stable
spreads and operating cost control. Credit operations amounted
to BRL9.2 billion, 94% of which for companies in the Middle
Market segment.

Net income increased to BRL104.7 million in 2Q08 and
BRL196.6 million in 1H08 and it was: a) negatively affected by
marked to market, corresponding to hedging operations for
external funding (with net effects of BRL21.1 million in 2Q08
and BRL14.5 million in 1Q08, which followed records for the same
purpose of BRL14.9 million in 2H07 and BRL16.6 million in 1H07),
all of which are reversible whether it be at the maturity of the
operations which gave rise to the marks or a possible
appreciation of the U.S. dollar before those maturities; and b)
positively impacted by the application of the new Social
Contribution rate for the stock of the late 2007 Tax Credits
(with a net effect of BRL25.8 million in 2Q08).

The non-consolidated net income of the multiple bank amounted to
BRL102.7 million and BRL201.2 million, respectively, in 2Q08 and
in 1H08.  The multiple bank's ROAE was 26.9% and 26.1% in the
same periods.

                   Financial Operations Result

Financial operations result in 2Q08, considering the provisions
for credit write-off, was BRL203.4 million, representing a 9.9%
increase compared to the previous quarter and 90.2% over 2Q07.
Financial operations result came to BRL388.5 million, an 80.8%
rise in comparison to the same period of 2007.

In 2Q08, credit operations revenues accounted for 86.2% of
the total financial operations result, thus ratifying the bank's
focus on financing.  Revenues from credit operations totaled
BRL392.6 million in 2Q08, up 12.1% from 1Q08, highlighting the
rise of 18.2% in revenues from working capital and of 20.8% in
revenues from guaranteed accounts, the bank's main products.
Expenses on financial operations amounted to BRL252.1 million,
having risen by 9.2% in the quarter.  This rise is connected to
greater funding in Reais, especially CDBs, which recorded a
higher volume.

                       Net Interest Margin

In 2Q08, the annualized net interest margin (NIM) came to 10.0%,
which represented a rise of 0.6 p.p. in relation to the previous
quarter and of 2.4 p.p. when compared with 2Q07.  The net
interest margin of 1H08 was 9.1%, a 1.4 p.p. increase over the
same period of 2007.

The higher net interest margin is due to the larger credit
portfolio with stable spreads of operations and a larger share
of credit operations to the detriment of operations with
marketable securities and derivatives, due to the drop in
repurchase commitment operations.

                        Efficiency Ratio

The 2Q08 efficiency ratio was 34.8%, which is a 2.1 p.p. growth
in comparison to that of the previous quarter.  There was a more
significant 14.3 p.p. rise when compared with 2Q07.  The 1H08
ratio was 35.8%, versus the 46.1% ratio in 1H07.  The efficiency
ratio rose steadily in the periods under comparison.  The scale
and productivity gain is due to the expansion in the bank's
financial operations, which was proportionately higher than the
rise in costs.

                              Assets

The bank's total assets amounted to BRL11.9 million in 2Q08, an
increase of 8.9% for the quarter and of 34.4% in the 12-month
period.

                        Credit Operations

Credit operations totaled BRL9.2 billion in 2Q08, increasing
18.1% over 1Q08 and 56.9% over 2Q07.  In 2Q08, corporate credit,
which involves large and medium-sized businesses, accounted for
94.1% of the bank's credit operations.  Payroll deductible
credit accounted for 4.6% and personal credit for 1.3% of the
overall portfolio.

There were no assignments of receivables in the 2nd quarter of
2008.

The bank's concession of credit follows the concept of
diversification and dispersion of the risks and safeguarding of
the operations through collaterals.  In June 2008, 66.2% of
the corporate loans in local currency (BRL) had collaterals in
the form of receivables (55.3%) and financial investments
(10.9%), considered to be satisfactory and highly liquid.  The
emphasis on diversification and dispersion of the operations
seeks to dilute credit in geographical regions, economic
segments and products as well as to avoid any types of
concentration.

In 2Q08, the distribution of credit by economic segments was
as follows: industry 48.3%, services 26.5%, commerce 10.9%,
individuals 6.6%, public sector 3.3%, agriculture 2.4% and
financial middle-parties 2.0%.  In each economic segment, the
risk dispersion policy is also seen in the credit extension to
clients in different industrial, commercial and service
activities.  The policy of credit dispersal implies avoiding
risk concentration, both in the case of a single client and for
a small number of clients.

In 2Q08, credits overdue over 15 days totaled 0.7% of the
overall credit portfolio.  The favorable economic environment
has helped keep this rate below 2.0% over the last 3 years.

Working capital is the bank's main product.  It is aimed at
meeting the cash flow requirements of companies, generally with
maturities not longer than one year.  At the end of 2Q08, it
totaled BRL5,158.8 million, representing 56.2% of the total
credit portfolio, up 21.4% quarter-over-quarter and 94.7% over
the past 12 months.

Guaranteed accounts refer to credits linked to corporate bank
accounts, aimed at promptly meeting the clients' needs.  At the
end of the quarter, this type of credit represented 14.3% of the
total of the credit portfolio, reaching BRL1,308.9 million. It
rose 21.9% during the quarter and 51.6% over the past 12 months.

Trade finance (export finance) comprises advances for foreign
exchange contracts (ACC) and import and export financing.  Trade
finance operations are strategically important for the Bank
since they expand product offer, ensure loyalty from clients in
foreign trading and disperse credit portfolio risks.  At the end
of 2Q08, it totaled BRL1,719.7 million, representing 18.8% of
the total credit portfolio.  There was an increase of 16.9% in
the quarter and of 28.6% in the last 12 months.

At quarter-end, payroll deductible credit represented 4.6% of
the total of the credit portfolio, reaching BRL425.0 million,
including assignment of receivables to FIDC.  These credits
declined 4.1% over the quarter and 14.4% compared to the balance
obtained at the close of 2Q07.

If the amounts assigned to FIDC are not included, the payroll
deductible credit portfolio totaled BRL217.5 million.

Other credits mainly comprises Compror, Resolution 63, BNDES
onlending, corporate overdraft, leasing and agribusiness. At the
end of 2Q08, these credits amounted to BRL443.5 million and
accounted for 4.8% of the operations, increasing 13.1% in the
quarter and 18.8% over the past 12 months.

Leasing operations portfolio came to BRL46.6 million, a 70.4%
rise in the quarter.  The bank enlarged its team and has
concentrated efforts on making this product more dynamic.

                     Guarantees and Sureties

Although these operations are not included in the credit
portfolio, it is worth noting their performance.

The responsibilities for guarantees and sureties conceded in
2Q08 totaled BRL512.2 million, expanding 13.7% over 1Q08 and
194.9% in relation to 2Q07.

              Marketable Securities and Derivatives

The marketable securities and derivatives portfolio amounted
to BRL1,354.0 million at the end of 2Q08, a balance 13.7%
lower than that of 1Q08 and 40.9% lower than that of 2Q07.  That
fall is associated with the decrease in the repurchase
commitment operations portfolio, which, over the same periods,
contracted by 87.0% and 96.0% respectively.

In line with the bank treasury's conservative policy, 93.4% of
the marketable securities and derivatives portfolio was made
up of federal T-bonds.

                          Liquid Assets

In 2Q08, high liquidity assets amounted to BRL945.7 million, a
21.9% drop in comparison to the previous quarter.  Management
considers this amount a very comfortable balance in view of the
bank's present risk structure and believes it provides enough
protection from the current instability of markets, still
volatile due to the subprime crisis.

                             Funding

The bank focuses on diversification of its funding by conforming
it to the credit portfolio profile, as a means to minimize
currency, term and interest rates mismatches, and to guarantee
liquidity to optimize growth opportunities.

The volume of funds raised amounted to BRL8,851.5 million in
2Q08, a 15.3% increase during the quarter and 50.7% for the
last 12 months.

Most of the Bank Deposit Certificates are issued on behalf of
corporate clients, which confer on this type of funding a more
stable and dispersed profile.

                         Domestic Funding

In 2Q08, time deposits, which are the main source of funding,
totaled BRL5,253.0 million and posted increases of 16.3% and
69.9% for the quarter and during the year, respectively.

Current deposits, savings and interfinancing amounted to
BRL592.2 million.  The payroll deductible credit FIDC launched
in March 2008 totaled BRL160.2 million and the BNDES onlending
obligations, BRL24.3 million.

                        External Funding

The bank maintains active relationships with more than 65
overseas banks, which provide funds for trade finance
operations. This type of funding totaled BRL1,607.7 million, an
increase of 5.6% for the quarter and of 26.2% in the 12-month
period.

On April 23, the bank raised US$130 million at 7% p.a. through
the issue of two-year Eurobonds, as a part of its EMTN program
totaling US$1 billion.  The operation was resumed for another
tranche of US$50 million, issued on May 19, with the same
maturity and at the same rate.

External funding, through the issue of securities, onlending
and subordinated debt, totaled BRL1,352.1 million.

In the case of overseas funding in foreign currency, which serve
as funding for credit operations with longer maturities, the
bank conducts swap operations to avoid risks from foreign
exchange mismatches.

                            BIS Ratio

According to the Brazilian Central Bank rules, all banks must
maintain a total reference equity equal to or greater than 11.0%
of the assets weighted by the risk.

                    Shareholder Remuneration

At the June 30, 2008 Board of Directors Meeting, the payment
of interest on equity corresponding to the 2Q08 results was
approved.  Payments will total BRL23.9 million and will be made
on July 10, 2008.  In 1H08, BRL47.7 million were already paid
out, up 151.2% from 1H07.

                         Human Resources

The bank closed 2Q08 with 897 employees, a 4.3% rise in relation
to 1Q08 and 25.3% in comparison to 2Q07.  Highlights over the
year were the 29.2% increase in the commercial team as a result
of the expansion of the outlet network in the period.

At the June 30, 2008 Board of Directors Meeting, the share buy-
back program to repurchase BICBANCO preferred shares was
approved.  The acquisition limit is 9,418,877 preferred shares,
and the deadline for this operation is June 27, 2009.

                     About Banco Industrial

Banco Industrial e Comercial S.A. is headquartered in Sao Paulo,
Brazil, with BRL10,937 million in total assets and
BRL1,630 million in equity as of March 31, 2008.

                            *    *    *

In February 2008, Moody's Investor Service assigned a Ba2
foreign currency deposit rating for Banco Industrial e Comercial
S.A.

As reported in the Troubled Company Reporter-Latin America on
March 1, 2007, Standard & Poor's Ratings Services assigned its
'B+' counter party credit rating to Banco Industrial e Comercial
SA.  S&P said the outlook is stable.


BANCO NACIONAL: President Lula Inks Decree to Form Amazon Fund
--------------------------------------------------------------
Brazilian President Luiz Inacio Lula da Silva signed a decree in
which Banco Nacional de Desenvolvimento Economico e Social SA
will create and manage the Fundo Amazonia (Amazon Fund).  The
fund will take on financial resources mainly from donations, and
may get contributions corresponding to US$ 1 billion in the
first year of effect.  Potential drawing of national and foreign
funding may exceed US$21 billion by 2021.

The new fund will be intended to non-reimbursable financing
arrangements of efforts that may contribute to the prevention,
monitoring and fighting of deforesting, also fostering the
conservation and the sustainable use of forests in the Amazon
biome.  Such strategy aims at reducing emissions of greenhouse
effect gases to the atmosphere as a result of the areas
deforested in the Brazilian Amazon.

Carbon stocks for the tropical forests around the world is
around 100 billion tons of carbon, corresponding to two-times
the total amount of carbon in atmosphere.  Decrease of
deforesting, the outcome of the conservation and the sustainable
management of forests are clear opportunities of having
immediate climatic benefits.

The decree states that BNDES will coordinate donations and will
issue a diploma recognizing the contribution of donators.
Diplomas will be nominal, non-transferable and will not imply
equity rights or carbon credits to offset.  President Lula will
sign BNDES' decree in a ceremony to be attended by theo Bank’s
President, Luciano Coutinho, and the Environment Minister,
Carlos Minc.

Characteristics –- The new fund, which will include funding from
the Bank’s budget, support projects with the following goals:

   * management of public forests and protected areas;

   * environmental control, monitoring and supervision;

   * sustainable forest management;

   * economic activities developed with the sustainable use of
     the forest;

   * ecologic and economic zoning, agrarian regulation and
     organization;

   * conservation and sustainable use of biodiversity; and

   * recovery of deforested areas.

The actions to be taken as part of the fund must consider the
Plano Amazonia Sustentavel de Prevencao e Controle do
Desmatamento na Amazonia (Amazon Deforesting Prevention and
Control Plan).  Additionally, up to 20% of the funds from Fundo
Amaz˘nia may be applied in the development of deforesting
monitoring and control systems in other Brazilian biomes and
in other tropical countries.

The amount obtained by Fundo Amaz˘nia will be defined by the
Ministry of Environment, according to the decrease of carbon
emissions resulting from the deforestation.  Such decrease will
be attested by the Technical Committee of Fundo Amazonia (CTFA),
created for this purpose, the members of which will be appointed
by the Ministry of Environment.

The Fund will also create a Steering Committee, represented by
entities of the federal government, the governments of the
states included in Amazonia Legal (Legal Amazon) holding state
plans for the prevention and fighting to illegal deforestation
and representatives of the civil society, appointed by the
President of BNDES.  Its main contribution will consist in the
approval of the guidelines ruling the application of funds, the
internal regulations of the Fund’s Steering Committee, and its
annual report.

BNDES will manage the fund and will be in charge of the
contracting an independent audit to check the correct
application of the funds, according to the guidelines set forth
in the decree.

                      About Banco Nacional

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

                        *     *     *

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


BRASKEM SA: Net Income Up 36% to BRL383 Million in 2nd Qtr. 2008
----------------------------------------------------------------
Braskem S.A. has reported its results for the second quarter of
2008.

“The approval of the acquisition of the petrochemical assets of
the Ipiranga Group and the consolidation of the outstanding
minority interest of a number of important assets previously
owned by Petrobras allowed Braskem to reinforce its leadership
position in the Brazilian petrochemical industry,” commented
Braskem Chief Executive Officer, Bernardo Gradin.

“Domestic demand, fueled by construction and consumer-driven
industries, remained strong.  However, oil and naphtha price
increases in the quarter put pressure on operational margins,
leading Braskem to promptly realign its prices and leverage its
position in the domestic market.  Despite the scheduled
maintenance stoppages at the Basic Petrochemicals unit, we
delivered results above our internal expectations.  As well, we
still have teams actively working to capture additional gains
related to integration synergies as well as initiatives to
control costs in an ongoing effort to improve operational
results,” Mr. Gradin added.

                      Financial Highlights

Net revenue in the second quarter was BRL4.4 billion, declining
11% on a year-over-year basis and flat sequentially with the
first quarter of 2008.  The decline in net revenue was due to a
drop in aromatics sales as well as lower sales volumes for
ethylene and propylene due to scheduled maintenance stoppages at
the company's crackers in the Northeastern and Southern
petrochemical complexes.  The decline was partially offset by an
increase in domestic sales volume and improvement in pricing.

Braskem recorded EBITDA of BRL519 million in second quarter 2008
and EBITDA margin of 11.8%.  Despite the strong sales volume of
resins in the domestic market, which grew by 18%, high naphtha
costs combined with a decline in sales volume of basic
petrochemicals negatively impacted EBITDA.  It is expected that
the company will benefit in the second half of the year from
both the realignment of domestic prices with international
reference prices and increased sales volumes of basic
petrochemicals following the completion of scheduled maintenance
stoppages.

As part of Braskem's commitment to improve its competitiveness,
the company launched a program to reduce fixed costs and
expenses in fourth quarter 2007, the results of which are being
captured in 2008.  In second quarter 2008, selling, general and
administrative expenses (SG&A) were BRL298 million, down BRL35
million in relation to second quarter of 2007.  In the first
half of 2008, SG&A expenses were BRL559 million, contracting by
BRL118 million in relation to the first half of 2007,
demonstrating the positive results of this program.

Braskem net income was BRL383 million in second quarter 2008, a
36% increase on a year-over-year basis and a 362% sequential
increase over first quarter 2008, driven primarily by the
positive impact from foreign exchange variation.

                            Outlook

The global macroeconomic scenario continues to be positively
influenced by emerging economies, yet the expectation of a
slowdown of the United States economy, which has been showing
signs of slowdown, has increased.  These factors combined are
expected to result in global economic growth of approximately 4%
in 2008.  In this context, the company believes that new
capacity globally will come on line at a more gradual pace than
previously estimated by the market, allowing the spread between
resin and naphtha prices to remain high through 2008.

The company expects Brazilian GDP to grow by 4.5% in 2008 driven
by stronger domestic demand for goods and services as a result
of the higher disposable income and the greater availability of
credit at longer terms.  Under these assumptions, and in view of
the growth observed in first quarter 2008, the Brazilian market
for thermoplastics resins should grow between 10% and 12% in
2008.

Braskem intends to advance in its growth with value creation
strategy.  Its priorities are the capture of synergies through
consolidation of Brazil's petrochemical industry,
diversification of the energy matrix through access to
competitive raw materials, and innovation, by advancing the
project for green polymers made from renewable raw materials as
well as other initiatives.  The company has made important steps
in the second quarter towards meeting these objectives and
expects to make further progress in the second half of the year.

Among the expansion projects designed to increase
competitiveness by gaining access to competitive raw materials
are two joint ventures with Pequiven in Venezuela.  The
facilities are expected to increase the volumes of polypropylene
and polyethylene supplied to the Venezuelan market and provide a
competitive platform for the export of these products to North
America, Europe and the western coast of South America.
Similarly, the company signed an agreement with Petrobras and
PetroPeru to assess the technical and economic feasibility of
installing an integrated project for the production of 700,000
to 1.2 million tons of polyethylene, using as feedstock the
natural gas that is rich in ethane available in Peru.

Braskem was the first in the world to produce polyethylene
certified as made from 100% renewable raw materials, and the
company is now undertaking a technical feasibility study of the
production of green polyethylene at the Southern Petrochemical
Complex, with a potential investment estimated at between BRL450
and BRL500 million.  The project will have annual production
capacity of 200,000 tons and the potential demand for green
polyethylene is roughly three times higher than the plant's
capacity, suggesting an opportunity to make new investments in
the production of polymers made from ethanol.

                         About Braskem

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

                        *     *     *

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

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

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


DELPHI CORP: GM Says Delphi-Related Charges Reach US$11 Billion
---------------------------------------------------------------
General Motors Corp. said charges related to Delphi Corp. has
now reached approximately US$11,000,000,000.  In a presentation
furnished to securities analysts, GM said made a
US$2,753,000,000 adjustment to its Delphi reserve, "primarily
due to updated estimates related to Delphi's ongoing
reorganization."   The adjustment reflects higher expected
obligations (e.g. net pension liabilities) and additional
uncertainty around nature, value and timing of GM recoveries.
GM's one-time losses due to Delphi have totaled US$3,484,000,000
for the 1st half of 2008.

GM, which contributes to over 30% of Delphi's revenues, reported
a net loss of US$15,471,000,000 or US$27.33 per share for the
second quarter of 2008.  The quarterly loss, according to
Bloomberg News, is the third biggest in its 100-year history.

"Second quarter charges of US$2.8 billion and year to date
charges of $3.5 billion were recorded for increased liabilities
under our Delphi Benefit Guarantee Agreements, primarily due to
expectations of increased obligations and updated estimates
reflecting the nature, value and timing of our recoveries upon
Delphi's emergence from bankruptcy," GM said in its news
release.

A former unit of GM, Delphi was set to emerge from bankruptcy in
mid-April but obtained problems with its US$2,550,000,000 exit
equity financing from Appaloosa Management, L.P.  The plan of
reorganization of Delphi, which has been confirmed by the U.S.
Bankruptcy Court for the Southern District of New York, provides
that GM will receive cash, notes and other securities in
exchange for the consideration it provided to Delphi under their
agreements.  Appaloosa backed out from their investment
agreement after Delphi sought US$2,825,000,000 of its
US$6,100,000,000 exit debt financing from GM, its biggest
customer.

GM said that its second quarter results were primarily driven by
several factors:

  -- significant losses in GM North America (GMNA) due to
     continuing U.S. industry volume declines and shifts in
     vehicle mix, the long strike at American Axle and large
     lease-related charges;

  -- a number of special charges associated with GM's ongoing
     restructuring actions; and

  -- continued losses at GMAC Financial Services (GMAC) and
     updated estimates regarding recoveries and expectations of
     assumed benefit obligations in the Delphi bankruptcy.

Excluding expenses considered by GM to be one-time, including
its adjustment to reserves for bankrupt Delphi Corp., the loss
was US$6,300,000,000, or US$11.21 a share.

Standard & Poor's has cut GM's credit rating to B-, six levels
below investment grade, as falling U.S. sales have required the
automaker to use more cash.  GM says that its readily-available
cash assets total US$21,000,000,000 and it still has access to
US$5,000,000,000 under its undrawn U.S. credit facilities.

                           About GM
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.

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.

                         About Delphi

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

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

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

(Delphi Bankruptcy News, Issue No. 139; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)


DELPHI CORP: Court Rejects Appaloosa Bid to Dismiss Lawsuit
-----------------------------------------------------------
As widely reported, Judge Robert D. Drain of the U.S. Bankruptcy
Court for the Southern District of New York declined to approve
Appaloosa Management, L.P., et al.'s request for dismissal of
Delphi Corp.'s US$2,550,000,000 lawsuit against them.

Delphi has accused Appaloosa and other investors of defrauding
the Court by stating that they had every intention of performing
under the Equity Purchase and Commitment Agreement.  Appaloosa,
however, argued that Delphi cannot seek specific performance
because it is currently unable to perform under the conditions-
precedent of the EPCA, including obtaining commitment to its
US$6,100,000,000 debt financing and the completion of the rights
offering.

The Wall Street Journal reported that Judge Drain dismissed a
portion of Delphi's complaint, but he rejected most of the
defendants' arguments.  Judge Drain also allowed Delphi to
pursue its fraud claim against the Appaloosa-led group.

The ruling allows Delphi to continue its bid to force the Plan
Investors to make good on the equity investment, WSJ's David
McLaughlin said.

The Plan Investors had also pointed to provision in the EPCA
which provide that the aggregate liability of the the Plan
Investors for any reason, including, for any willful breach,
prior to December 10, 2007, will not exceed US$100,000,000, and
for any acts occurring thereafter, will not exceed
US$250,000,000.

Judge Drain, however, declined to cap damages at the EPCA at
US$250,000,000.  General Motors previously said that the terms
and conditions of a new or modified plan, which it is
negotiating with Delphi and the Official Committee of Unsecured
Creditors, will depend in part on the amount of Delphi's
recovery in the litigation.

According to Bloomberg News, Judge Drain dismissed almost all
claims Delphi made against Goldman Sachs Group Inc. and said any
damages award against the parents of investors Harbinger Del-
Auto Investment Co. Ltd. and Pardus DPH Holding LLC should be
capped.  Goldman Sachs & Co. previously stated that it had not
obligation to close on the EPCA if other parties, including
Appaloosa, failed to perform their obligations under the
agreement.

Bloomberg's Christopher Scinta added that the Court also turned
aside Delphi's effort to subordinate in priority (or disallow)
any claims the investors, other than Appaloosa, hold against
Delphi.  Judge Drain, according to the same report, also denied
part of Delphi's fraud claim against Appaloosa, though he told
Delphi attorneys they can revise their complaint by the end of
the week to seek reinstatement of that claim.

            GM Allowed to Join As Party-In-Interest

Judge Drain also overruled the Plan Investors' objection to
General Motors Corporation's participation as party-in-interest
in the Adversary Proceedings.  According to Bloomberg News,
Judge Drain said Delphi will not settle the adversary cases
without “obtaining input” ahead of time from GM.

Like A-D Acquisition Holdings, LLC, and Appaloosa Management
L.P. and other defendants to Delphi's US$2,550,000,000
complaint, UBS Securities LLC expressed opposition to General
Motors' participation as party-in-interest.

General Motors, in response, to the objections, clarified that
it does not seek to intervene, but instead simply requests to be
afforded admission to participate as a monitor in the Adversary
Proceedings.

Michael P. Kessler, Esq., at Weil, Gotshal & Manges LLP, in New
York, notes that the role sought by GM is subsumed within the
greater rights that would be afforded to GM were it to exercise
its right to intervene as a party to the Adversary Proceedings.
In no way, then, does GM's proposal circumscribe any party's
rights or deprive them of any protectable interests, he asserts.

GM also emphasized that it does not seek to propose settlement
of the dispute or take ownership of the Debtors' claims, nor is
GM asserting rights that are derivative of another party's
rights in the Chapter 11 cases, Mr. Kessler stressed.

GM, Delphi and the Official Committee of Unsecured Creditors
have agreed to terms of GM's participation in the Adversary
Proceedings.  Their stipulation, which has been approved by
Judge Drain, provides that:

  (1) Weil, Gothshal and Manges, counsel of GM, will be served
      with all pleadings and other papers in accordance with
      Rule 5 of the Federal Rules of Civil Procedure and Rule
      7005 of the Federal Rule of Bankruptcy Procedure;

  (2) GM, through its counsel, may participate in the Adversary
      Proceedings in a monitoring role, and will be permitted
      to:

         (i) appear before the Court on any matter, including at
             hearings and, as appropriate, chambers conferences;

        (ii) attend mediation sessions and other formal
             settlement negotiations, subject to any
             restrictions by the mediator; and

       (iii) participate in the discovery process, including
             attendance at depositions, access to all
             documents produced and written discovery requests
             and responses, and deposition transcripts and
             exhibits.

  (3) GM will sign and comply with the confidentiality
      restrictions in the Stipulation and Agreed Protective
      Order Governing Production and Use of Confidential and
      Highly Confidential Information entered in the Adversary
      Proceedings;

  (4) GM will have access to all documents produced and written
      discovery requests and responses, and deposition
      transcripts and exhibits;

  (5) Weil Gotshal, on behalf of GM, will be authorized to
      evaluate the Adversary Proceedings.  Neither Weil Gotshal
      nor GM will use materials provided pursuant to the
      Stipulation and Order for any other purpose;

  (6) The agreement is without prejudice to:

         (i) GM seeking further participation rights in the
             Adversary Proceedings;

        (ii) any party opposing the motion;

       (iii) any party seeking greater restrictions; and

        (iv) GM opposing restrictions;

  (7) The agreement is without prejudice to GM seeking to share
      discovery materials with GM personnel in connection with
      testimony by the personnel at depositions, hearings or
      trial, and if the parties cannot agree, the dispute may be
      presented to the Court; and

      Delphi will not settle either of the Adversary Proceedings
      without obtaining input in advance from GM.

Delphi lawyers will confer with GM's lawyers on a regular and
timely basis concerning the Adversary Proceedings.

The Stipulation will be effective for only so long as the Global
Settlement Agreement and Master Restructuring Agreement entered
into between General Motors and Delphi are not terminated.

                           About GM

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.

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.

                         About Delphi

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

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

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

(Delphi Bankruptcy News, Issue No. 139; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)


DELPHI CORP: Court Extends Plan-Filing Deadline to October 31
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
extended Delphi Corp. and its debtor-affiliates' exclusive
periods to:

  (a) file a plan of reorganization through and including
      Oct. 31, 2008; and

  (b) solicit acceptances of that Plan through and including
      Dec. 31, 2008.

As reported by the Troubled Company Reporter on July 29, 2008,
John Wm. Butler, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, in Chicago, Illinois, recalled that on April 4, 2008, the
Debtors announced that although they had met the conditions
required to substantially consummate the Plan, including
obtaining US$6,100,000,000 of exit financing, Delphi's Plan
Investors refused to participate in a closing.

As disclosed in the Troubled Company Reporter on May 7, 2007,
the Debtors obtained an extension, subject to certain
exceptions, of their exclusive right under Section 1121 of the
Bankruptcy Code to file one or more reorganization plans until
30 days after substantial consummation of the Plan and the
exclusive right to solicit and obtain acceptances for those
plans 90 days after substantial consummation of the plan by
entry of the Order Under Section 1121(d) of the Bankruptcy Code.
The Order, however, extended the Debtors' exclusive right to
file a plan, as between the Debtors and the Statutory
Committees, through and including Aug. 31, 2008, and the right
to solicit a plan, as between the Debtors and the Statutory
Committees, through and including Oct. 31, 2008, Mr. Butler
said.

On May 16, 2008, Delphi filed complaints for damages and
specific performance against the Plan Investors who refused to
participate in the closing that would have led to Delphi's
successful emergence from Chapter 11.  The Debtors nevertheless
continue to work with their stakeholders to achieve their goal
of emerging from Chapter 11 as soon as practicable, Mr. Butler
said.

Out of an abundance of caution and to ensure clarity with their
stakeholders, including their customers and suppliers, the
Debtors seek an extension of the Exclusive Periods to prevent
any lapse in exclusivity between the Debtors and the Statutory
Committees, Mr. Butler clarified.

Mr. Butler explained that a further extension of the Exclusive
Periods is justified by the significant progress the Debtors
have made toward emerging from Chapter 11.  After obtaining
confirmation of the First Amended Plan, the Debtors secured exit
financing and met all other conditions to the effectiveness of
the Plan and Investment Agreement and were prepared to emerge
from Chapter 11.

Since April 30, 2008, Mr. Butler noted, the Debtors have
continued to make progress toward emerging from Chapter 11 in
three major areas:

  (i) The Debtors have engaged in a reaffirmation process with
      respect to the business plan contained in the Disclosure
      Statement.  That process includes an analysis, among other
      things, of the impact of an unprecedented increase in
      global commodity costs and reduction of projected North
      American automobile industry production volumes;

(ii) The Debtors have explored their exit financing
      possibilities in capital markets that remain turbulent;
      and

(iii) The Debtors have entered into complex negotiations with
      the Statutory Committees and General Motors Corp. with
      respect to potential modifications of the Plan that will
      enable Delphi to emerge from chapter 11 as soon as
      reasonably practicable, thereby moving forward so that the
      Debtors can focus solely on their business operations and
      mitigate the damages caused by the Plan Investors.

                         About Delphi

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

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

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

(Delphi Bankruptcy News, Issue No. 139; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)


GENERAL MOTORS: Overall Truck Sales Decline 41.5% in July
---------------------------------------------------------
General Motors Corp. reported Friday its July sales results,
highlighted by continued strong performance in small and midsize
cars and crossovers.  GM dealers in the United States delivered
235,184 vehicles in July, down 26.7 percent.  Weak industry
conditions caused by a challenging U.S. economic environment,
higher fuel prices and inventory shortages in critical segments
such as compact cars contributed to the overall sales decline
for the month.

"In July, we saw strong performance once again in our launch
products, including the Cadillac CTS, Chevrolet Malibu, Saturn
Astra, and Pontiac Vibe and G8.  In addition, we continued to
see strong retail demand for our fuel efficient Chevrolet Aveo
and HHR, Saturn Vue and Buick Enclave.  So, despite an overall
weak market, there are pockets of strength," said Mark LaNeve,
vice president, GM North America Vehicle Sales, Service and
Marketing.  "Obviously, the weakness in the truck market
persisted in July, yet we continue to hold share due to our fuel
economy leadership in many truck segments despite dramatic
competitive incentive spending increases."  Overall, GM truck
sales in July declined 41.5 percent.

Chevrolet cars continued to show strength in the marketplace
with Malibu total sales up 79 Percent, Aveo up 17 percent and
Cobalt up 4 percent compared with last July.

Cadillac CTS dominated the mid-car luxury category with sales
increasing 38 percent compared with the same month a year ago.
Pontiac met consumers' needs for fuel efficient vehicles with a
performance edge with G5 sales up 17 percent, Vibe up 7 percent
and G6 up 6 percent compared with July 2007.

Saturn's award-winning Aura midsize car saw a sales increase of
24 percent with the two-seat Sky selling 14 percent more
vehicles than July last year.  Astra monthly sales of more than
1,500 vehicles were the best to date, and show a 75 percent
increase compared with June 2008 (Astra was not available last
July).  GM's popular midsized crossovers Buick Enclave, GMC
Acadia and Saturn Outlook together accounted for more than
11,600 vehicle sales in the month.

GM hybrid vehicles continue to gain in popularity in the
marketplace with 228 hybrid Chevrolet Tahoe and 123 GMC Yukon 2-
mode SUVs delivered.  There were 349 Chevrolet Malibu, 29 Saturn
Aura and 362 Vue hybrids sold in July.  For the month, a total
of 1,091 hybrid vehicles were delivered, with 5,467 hybrids sold
so far this year.

"We're working hard to change perceptions and gain awareness of
GM as the leader in advanced propulsion technology and fuel
efficiency," Mr. LaNeve added.  "Customers can experience that
each time they visit a dealer's showroom to see the full lineup
including five hybrid models that provide industry-leading
value, great fuel economy and the best warranty coverage of any
full-line automaker.  We don't just talk about technology, fuel
efficiency and value we have the cars and trucks available today
to back it up."

GM has aggressively managed inventories to low levels.  In July,
only about 747,000 vehicles were in stock a three-year low
down about 201,000 vehicles (21 percent) compared with last
July.  There were about 236,000 cars and 511,000 trucks in
inventory at the end of July.

                    Certified Used Vehicles

July 2008 sales for all certified GM brands, including GM
Certified Used Vehicles, Cadillac Certified Pre-Owned Vehicles,
Saturn Certified Pre-Owned Vehicles, Saab Certified Pre-Owned
Vehicles, and HUMMER Certified Pre-Owned Vehicles, were 41,594
vehicles, down 2 percent from July 2007.  Year-to-date sales are
298,137 vehicles, down nearly 6 percent from the same period
last year.

GM Certified Used Vehicles, the industry's top-selling certified
brand, posted July sales of 35,799 vehicles, down 4 percent from
a strong July 2007 sales performance.  Cadillac Certified Pre-
Owned Vehicles sold 3,700 vehicles, up 22 percent.  Saturn
Certified Pre-Owned Vehicles sold 1,164 vehicles, down 24
percent.  Saab Certified Pre-Owned Vehicles sold 770 vehicles,
up 21 percent, and HUMMER Certified Pre-Owned Vehicles sold 161
vehicles, up 89 percent.

“Our luxury certified pre-owned programs -- Cadillac, Saab and
HUMMER Certified Pre-Owned Vehicles -- each posted strong sales
increases last month, and GM Certified Used Vehicles is again
setting the pace to lead the segment in sales this year,” said
Mr. LaNeve.  “We're confident more shoppers will seek the
quality and value that manufacturer certification offers.”

        GM North America Reports July, 2008 Production;
Third-Quarter Production Forecast Remains at 900,000 Vehicles

In July, GM North America produced 238,000 vehicles (116,000
cars and 122,000 trucks).  This is down 16,000 vehicles or 6
percent compared with July 2007 when the region produced 254,000
vehicles (91,000 cars and 163,000 trucks).  (Production totals
include joint venture production of 14,200 vehicles in July 2008
and 13,000 vehicles in July 2007.)

The GM North America third-quarter production forecast is
unchanged from last month at 900,000 vehicles (456,000 cars and
444,000 trucks) which is down about 12 percent compared with a
year ago, due to production adjustments in response to market
changes that will reduce the number of trucks produced by about
209,000 and increase the number of cars by about 89,000.  GM
North America built 1.020 million vehicles (367,000 cars and
653,000 trucks) in the third-quarter of 2007.

                      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.

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.

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

                        *     *     *

As disclosed in the Troubled Company Reporter-Latin America on
Aug. 4, 2008, Standard & Poor's Ratings Services lowered the
ratings on General Motors Corp., Ford Motor Co., and Chrysler
LLC, all to 'B-' from 'B'.  The ratings on GM and Ford were
removed from CreditWatch with negative implications, where they
had been placed on June 20, 2008.  Chrysler will remain on
CreditWatch pending the renewal of certain bank lines at
DaimlerChrysler Financial Services Americas LLC, which S&P
expects to be completed in the next few days.  If the bank lines
are renewed as expected, S&P would affirms the ratings on
Chrysler and DCFS and remove them from CreditWatch.

As related in the Troubled Company Reporter-Latin America on
June 6, 2008, Standard & Poor's Ratings Services said that its
ratings on General Motors Corp. (B/Negative/B-3) are not
immediately affected by the company's announcement that it will
cease production at four North American truck plants over the
next two years.  These closures are in response to the re-
energized shift in consumer demand away from light trucks.  GM
previously said only one shift was being eliminated at each of
the four truck plants.  Production is being increased at plants
producing small and midsize cars, but the cash contribution
margin from these smaller vehicles is far less than that of
light trucks.


GENERAL MOTORS: Says Delphi-Related Charges Reach US$11 Billion
---------------------------------------------------------------
General Motors Corp. said charges related to Delphi Corp. has
now reached approximately US$11,000,000,000.  In a presentation
furnished to securities analysts, GM said made a
US$2,753,000,000 adjustment to its Delphi reserve, "primarily
due to updated estimates related to Delphi's ongoing
reorganization."   The adjustment reflects higher expected
obligations (e.g. net pension liabilities) and additional
uncertainty around nature, value and timing of GM recoveries.
GM's one-time losses due to Delphi have totaled US$3,484,000,000
for the 1st half of 2008.

GM, which contributes to over 30% of Delphi's revenues, reported
a net loss of US$15,471,000,000 or US$27.33 per share for the
second quarter of 2008.  The quarterly loss, according to
Bloomberg News, is the third biggest in its 100-year history.

“Second quarter charges of US$2.8 billion and year to date
charges of US$3.5 billion were recorded for increased
liabilities under our Delphi Benefit Guarantee Agreements,
primarily due to expectations of increased obligations and
updated estimates reflecting the nature, value and timing of our
recoveries upon Delphi's emergence from bankruptcy,” GM said in
its news release.

A former unit of GM, Delphi was set to emerge from bankruptcy in
mid-April but obtained problems with its US$2,550,000,000 exit
equity financing from Appaloosa Management, L.P.  The plan of
reorganization of Delphi, which has been confirmed by the U.S.
Bankruptcy Court for the Southern District of New York, provides
that GM will receive cash, notes and other securities in
exchange for the consideration it provided to Delphi under their
agreements.  Appaloosa backed out from their investment
agreement after Delphi sought US$2,825,000,000 of its
US$6,100,000,000 exit debt financing from GM, its biggest
customer.

GM said that its second quarter results were primarily driven by
several factors:

  -- significant losses in GM North America (GMNA) due to
     continuing U.S. industry volume declines and shifts in
     vehicle mix, the long strike at American Axle and large
     lease-related charges;

  -- a number of special charges associated with GM's ongoing
     restructuring actions; and

  -- continued losses at GMAC Financial Services (GMAC) and
     updated estimates regarding recoveries and expectations of
     assumed benefit obligations in the Delphi bankruptcy.

Excluding expenses considered by GM to be one-time, including
its adjustment to reserves for bankrupt Delphi Corp., the loss
was US$6,300,000,000, or US$11.21 a share.

                         About Delphi

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

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

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

(Delphi Bankruptcy News, Issue No. 139; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)

                           About GM

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.

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.

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

                        *     *     *

As disclosed in the Troubled Company Reporter-Latin America on
Aug. 4, 2008, Standard & Poor's Ratings Services lowered the
ratings on General Motors Corp., Ford Motor Co., and Chrysler
LLC, all to 'B-' from 'B'.  The ratings on GM and Ford were
removed from CreditWatch with negative implications, where they
had been placed on June 20, 2008.  Chrysler will remain on
CreditWatch pending the renewal of certain bank lines at
DaimlerChrysler Financial Services Americas LLC, which S&P
expects to be completed in the next few days.  If the bank lines
are renewed as expected, S&P would affirms the ratings on
Chrysler and DCFS and remove them from CreditWatch.

As related in the Troubled Company Reporter-Latin America on
June 6, 2008, Standard & Poor's Ratings Services said that its
ratings on General Motors Corp. (B/Negative/B-3) are not
immediately affected by the company's announcement that it will
cease production at four North American truck plants over the
next two years.  These closures are in response to the re-
energized shift in consumer demand away from light trucks.  GM
previously said only one shift was being eliminated at each of
the four truck plants.  Production is being increased at plants
producing small and midsize cars, but the cash contribution
margin from these smaller vehicles is far less than that of
light trucks.


GENERAL MOTORS: Can Participate in Delphi Suit vs. Appaloosa
------------------------------------------------------------
As widely reported, Judge Robert D. Drain of the U.S. Bankruptcy
Court for the Southern District of New York declined to approve
Appaloosa Management, L.P., et al.'s request for dismissal of
Delphi Corp.'s US$2,550,000,000 lawsuit against them.

Delphi has accused Appaloosa and other investors of defrauding
the Court by stating that they had every intention of performing
under the Equity Purchase and Commitment Agreement.  Appaloosa,
however, argued that Delphi cannot seek specific performance
because it is currently unable to perform under the conditions-
precedent of the EPCA, including obtaining commitment to its
US$6,100,000,000 debt financing and the completion of the rights
offering.

The Wall Street Journal reported that Judge Drain dismissed a
portion of Delphi's complaint, but he rejected most of the
defendants' arguments.  Judge Drain also allowed Delphi to
pursue its fraud claim against the Appaloosa-led group.

The ruling allows Delphi to continue its bid to force the Plan
Investors to make good on the equity investment, WSJ's David
McLaughlin said.

The Plan Investors had also pointed to provision in the EPCA
which provide that the aggregate liability of the the Plan
Investors for any reason, including, for any willful breach,
prior to December 10, 2007, will not exceed US$100,000,000, and
for any acts occurring thereafter, will not exceed
US$250,000,000.

Judge Drain, however, declined to cap damages at the EPCA at
US$250,000,000.  General Motors previously said that the terms
and conditions of a new or modified plan, which it is
negotiating with Delphi and the Official Committee of Unsecured
Creditors, will depend in part on the amount of Delphi's
recovery in the litigation.

According to Bloomberg News, Judge Drain dismissed almost all
claims Delphi made against Goldman Sachs Group Inc. and said any
damages award against the parents of investors Harbinger Del-
Auto Investment Co. Ltd. and Pardus DPH Holding LLC should be
capped.  Goldman Sachs & Co. previously stated that it had not
obligation to close on the EPCA if other parties, including
Appaloosa, failed to perform their obligations under the
agreement.

Bloomberg's Christopher Scinta added that the Court also turned
aside Delphi's effort to subordinate in priority (or disallow)
any claims the investors, other than Appaloosa, hold against
Delphi.  Judge Drain, according to the same report, also denied
part of Delphi's fraud claim against Appaloosa, though he told
Delphi attorneys they can revise their complaint by the end of
the week to seek reinstatement of that claim.

            GM Allowed to Join As Party-In-Interest

Judge Drain also overruled the Plan Investors' objection to
General Motors Corporation's participation as party-in-interest
in the Adversary Proceedings.  According to Bloomberg News,
Judge Drain said Delphi will not settle the adversary cases
without “obtaining input” ahead of time from GM.

Like A-D Acquisition Holdings, LLC, and Appaloosa Management
L.P. and other defendants to Delphi's US$2,550,000,000
complaint, UBS Securities LLC expressed opposition to General
Motors' participation as party-in-interest.

General Motors, in response, to the objections, clarified that
it does not seek to intervene, but instead simply requests to be
afforded admission to participate as a monitor in the Adversary
Proceedings.

Michael P. Kessler, Esq., at Weil, Gotshal & Manges LLP, in New
York, notes that the role sought by GM is subsumed within the
greater rights that would be afforded to GM were it to exercise
its right to intervene as a party to the Adversary Proceedings.
In no way, then, does GM's proposal circumscribe any party's
rights or deprive them of any protectable interests, he asserts.

GM also emphasized that it does not seek to propose settlement
of the dispute or take ownership of the Debtors' claims, nor is
GM asserting rights that are derivative of another party's
rights in the Chapter 11 cases, Mr. Kessler stressed.

GM, Delphi and the Official Committee of Unsecured Creditors
have agreed to terms of GM's participation in the Adversary
Proceedings.  Their stipulation, which has been approved by
Judge Drain, provides that:

  (1) Weil, Gothshal and Manges, counsel of GM, will be served
      with all pleadings and other papers in accordance with
      Rule 5 of the Federal Rules of Civil Procedure and Rule
      7005 of the Federal Rule of Bankruptcy Procedure;

  (2) GM, through its counsel, may participate in the Adversary
      Proceedings in a monitoring role, and will be permitted
      to:

         (i) appear before the Court on any matter, including at
             hearings and, as appropriate, chambers conferences;

        (ii) attend mediation sessions and other formal
             settlement negotiations, subject to any
             restrictions by the mediator; and

       (iii) participate in the discovery process, including
             attendance at depositions, access to all
             documents produced and written discovery requests
             and responses, and deposition transcripts and
             exhibits.

  (3) GM will sign and comply with the confidentiality
      restrictions in the Stipulation and Agreed Protective
      Order Governing Production and Use of Confidential and
      Highly Confidential Information entered in the Adversary
      Proceedings;

  (4) GM will have access to all documents produced and written
      discovery requests and responses, and deposition
      transcripts and exhibits;

  (5) Weil Gotshal, on behalf of GM, will be authorized to
      evaluate the Adversary Proceedings.  Neither Weil Gotshal
      nor GM will use materials provided pursuant to the
      Stipulation and Order for any other purpose;

  (6) The agreement is without prejudice to:

         (i) GM seeking further participation rights in the
             Adversary Proceedings;

        (ii) any party opposing the motion;

       (iii) any party seeking greater restrictions; and

        (iv) GM opposing restrictions;

  (7) The agreement is without prejudice to GM seeking to share
      discovery materials with GM personnel in connection with
      testimony by the personnel at depositions, hearings or
      trial, and if the parties cannot agree, the dispute may be
      presented to the Court; and

      Delphi will not settle either of the Adversary Proceedings
      without obtaining input in advance from GM.

Delphi lawyers will confer with GM's lawyers on a regular and
timely basis concerning the Adversary Proceedings.

The Stipulation will be effective for only so long as the Global
Settlement Agreement and Master Restructuring Agreement entered
into between General Motors and Delphi are not terminated.

                         About Delphi

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

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

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

(Delphi Bankruptcy News, Issue No. 139; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)

                           About GM

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.

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.

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

                        *     *     *

As disclosed in the Troubled Company Reporter-Latin America on
Aug. 4, 2008, Standard & Poor's Ratings Services lowered the
ratings on General Motors Corp., Ford Motor Co., and Chrysler
LLC, all to 'B-' from 'B'.  The ratings on GM and Ford were
removed from CreditWatch with negative implications, where they
had been placed on June 20, 2008.  Chrysler will remain on
CreditWatch pending the renewal of certain bank lines at
DaimlerChrysler Financial Services Americas LLC, which S&P
expects to be completed in the next few days.  If the bank lines
are renewed as expected, S&P would affirms the ratings on
Chrysler and DCFS and remove them from CreditWatch.

As related in the Troubled Company Reporter-Latin America on
June 6, 2008, Standard & Poor's Ratings Services said that its
ratings on General Motors Corp. (B/Negative/B-3) are not
immediately affected by the company's announcement that it will
cease production at four North American truck plants over the
next two years.  These closures are in response to the re-
energized shift in consumer demand away from light trucks.  GM
previously said only one shift was being eliminated at each of
the four truck plants.  Production is being increased at plants
producing small and midsize cars, but the cash contribution
margin from these smaller vehicles is far less than that of
light trucks.


GERDAU AMERISTEEL: Books US$262.1MM Net Income in 2nd Qtr. 2008
---------------------------------------------------------------
Gerdau Ameristeel Corporation has reported net income of
US$262.1 million for the three months ended June 30, 2008, an
88.4% increase in comparison to net income of US$139.1 million
for the three months ended June 30, 2007.

For the six months ended June 30, 2008, net income was
US$425.1 million, an increase of 55.9% compared to net income of
US$272.7 million for the six months ended June 30, 2007.

Net sales for the three months ended June 30, 2008 increased
92.3% to US$2.5 billion from US$1.3 billion for the three months
ended June 30, 2007.  For the three months ended June 30, 2008,
finished steel shipments increased to 2.5 million tons, an
increase of 805 thousand tons from the three months ended
June 30, 2007, primarily as a result of the acquisition of
Chaparral Steel in September 2007.  Additionally, average mill
finished steel selling prices for the three months ended
June 30, 2008, increased 36.1% over the level in this same
period in 2007 and 19.9% over first quarter 2008 levels.  In
comparison to the first quarter of 2008, shipment volume
increased 5.1%.

For the three months ended June 30, 2008, metal spread, the
difference between mill selling prices and scrap raw material
costs, was US$499 per ton, an increase of US$83 per ton from the
same period in 2007.  The increase is primarily attributable to
the higher margin structural products.  For the six months ended
June 30, 2008, metal spread was US$478 per ton, an increase
of US$85 per ton from the same period in the prior year.
Partially offsetting this increase in metal spread has been a
significant increase in alloys, energy and other raw material
consumables used in the company's production process.

Earnings before interest, taxes, depreciation and amortization
(EBITDA) was US$521.1 million for the three months ended
June 30, 2008, compared to EBITDA of US$240.3 million for the
three months ended June 30, 2007.  For the six months ended
June 30, 2008, EBITDA was US$908.5 million compared to
US$484.9 million for the six months ended June 30, 2007.

In the prior year, the company purchased investments that are
comprised of variable rate debt obligations, known as auction
rate securities.  During the three and six months ended June 30,
2008, Gerdau Ameristeel recorded a US$17 million and
US$39.7 million charge to writedown the carrying value of these
investments to their fair market value of US$54.2 million.  The
original investment in these securities was approximately
US$102.8 million.  The impact to earnings per share of this
writedown for the three and six months ended June 30, 2008 was
approximately US$0.04 and US$0.09 per share, respectively.  The
effective tax rate was unfavorably impacted by this writedown as
no associated tax benefit was recorded for this item.

On April 1, 2008, Pacific Coast Steel, a majority owned and
consolidated joint venture of Gerdau Ameristeel, acquired
substantially all the assets of Century Steel, Inc., a
reinforcing and structural steel contractor specializing in the
fabrication and installation of structural steel and reinforcing
steel products for US$148.5 million.  Concurrently with the
acquisition of Century Steel, Gerdau Ameristeel paid
US$82 million to increase its equity participation in Pacific
Coast to approximately 84%.  Headquartered in Las Vegas, Nevada,
Century Steel Inc., operates reinforcing and structural steel
contracting businesses in Nevada, California, Utah and New
Mexico.

In June 2008, Gerdau Ameristeel increased its Senior Secured
Credit Facility from US$650 million to US$950 million.  At
June 30, 2008, there was nothing drawn against this facility
which is secured by the company's inventory and accounts
receivable.

On July 14, 2008, the company acquired substantially all of the
assets of Hearon Steel Co., a rebar fabricator and epoxy coater
with locations in Muskogee, Tulsa and Oklahoma City, Oklahoma.

On Aug. 5, 2008, the Board of Directors approved a quarterly
cash dividend of US$0.02 (two cents) per common share, payable
Sept. 4, 2008 to shareholders of record at the close of business
on Aug. 20, 2008.

                        Executive Comments

Gerdau Ameristeel President and Chief Executive Officer, Mario
Longhi commented, “We recorded the highest quarterly level of
shipments, revenue and earnings in the history of Gerdau
Ameristeel during the second quarter, attributable to the
successful execution of our strategic plans over the past
several years.  The acquisition of Chaparral Steel diversified
our product mix into high margin structural steel products while
our acquisition of Century Steel expands our value added
downstream fabrication and installation business in the western
United States markets.  Our expansive product offerings and
large geographic footprint reduce our dependence on any one
customer industry segment and help us produce these attractive
results for our shareholders.  In addition, our recycling
facilities, which provide a captive source for approximately 40%
of our scrap raw material requirements, have reduced the impact
of the significant volatility that has been experienced in this
market during 2008.”

Mr. Longhi added, “While we continue to experience significant
inflation in our raw material costs, we have been able to
increase selling prices to preserve our margins.  North American
demand remains solid across our main product lines including
rebar, merchant and structural bars and wire rod.  In addition,
we have been able to supplement our North American shipments
with strategic export opportunities to keep our facilities
operating at near capacity levels.”

“Our customer base has shown resilience to the general weakening
of the North American economy as our order backlog remains solid
and new contract activity continues in our downstream business
which is a leading indicator for our mill demand.  This,
combined with import levels which have moderated from historical
highs, global steel demand remaining strong, and relatively low
inventory levels throughout the North American system, gives us
a positive outlook for the coming months,” concluded Mr. Longhi.

                     About Gerdau Ameristeel

Headquartered in Tampa, Florida, Gerdau Ameristeel Corporation
(NYSE: GNA; TSX: GNA.TO) -- http://www.ameristeel.com/-- is a
mini-mill steel producer in North America.  Through its
vertically integrated network of 17 mini-mills, 17 scrap
recycling facilities and 52 downstream operations, Gerdau
Ameristeel serves customers throughout North America.  The
company's products are sold to steel service centers, steel
fabricators, or directly to original equipment manufactures for
use in a variety of industries, including construction, cellular
and electrical transmission, automotive, mining and equipment
manufacturing.  Gerdau Ameristeel is a unit of Brazilian firm
Gerdau SA.

                          *     *     *

As reported in the Troubled Company Reporter on Nov. 26, 2007,
Moody's Investors Service affirmed the ratings of Gerdau
Ameristeel Corporation including its 'Ba1' Corporate Family
Rating and Probability of Default Rating, as well as the US$405
million Senior Unsecured Regular Bond issued.  Moody's outlook
for all ratings is stable.  Moody's also affirmed Gerdau
Brazil's (fictitious entity representing the Brazilian
operations of Gerdau S.A. Comprising Gerdau Acominas S.A.,
Gerdau Acos Longos S.A., Gerdau Acos Especiais S.A., and Gerdau
Comercial de Acos SA) Ba1 Global Local Currency Corporate Family
Rating.

As reported in the Troubled Company Reporter-Latin America on
July 7, 2008, Standard & Poor's Ratings Services has revised its
outlook on Tampa, Florida-based Gerdau Ameristeel Corp., to
stable from negative.  S&P affirmed all ratings, including the
'BB+' corporate credit rating.


GERDAU SA: Reports BRL2.12 Billion Net Income in Second Quarter
---------------------------------------------------------------
Gerdau S.A. earned BRL2.12 billion for the second quarter of
2008, compared to BRL1.15 billion for the same quarter of 2007.

The company's gross revenue reaches BRL22.3 billion in the 1st
semester 2008, 35.2% higher than the same period in 2007.

Second quarter dividends will be paid on August 27.  Metalurgica
Gerdau S.A. shareholders will receive BRL0.60 per share and
Gerdau S.A. shareholders BRL0.36 per share.

EBITDA reaches BRL4.7 billion in the 1st semester, 51.7% higher
than the value achieved in the same period in 2007.  Margin is
23.6% versus 21.0% in 2007.

Crude steel production grows 25.6% in 1st semester when compared
to the same period in 2007, totaling 10.8 million tonnes.

Metalurgica Gerdau S.A. and Gerdau S.A. concluded capital
increase of approximately BRL1.5 billion and BRL2.9 billion,
respectively.  Metalurgica Gerdau issued 19.2 million stocks at
BRL78.35 per stock and Gerdau S.A. issued 48.1 million stocks at
BRL60.30 per stock.

Shareholders approved 100% stock split aiming to increase stock.
Liquidity and facilitate investors' access by reducing the
standard lot price.

Acquisitions announced and closed this year represent
investments of US$3.3 billion and business expansion in Brazil
and abroad.

Headquartered in Porto Alegre, Brazil, Gerdau S.A. --
http://www.gerdau.com.br/-- produces and distributes crude
steel and related long rolled products, drawn products, and long
specialty products.  In addition to Brazil, Gerdau operates in
Argentina, Canada, Chile, Colombia, Uruguay, India and the
United States.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Nov. 26, 2007, Moody's Investors Service affirmed Gerdau S.A.'s
Ba1 corporate family rating and stable outlook.


GLOBAL CROSSING: Provides Network Service to Energias do Brasil
---------------------------------------------------------------
Global Crossing Ltd. said that Energias do Brasil, a company
from Grupo Energias de Portugal that concentrates on the
generation, distribution and commercialization of electrical
power, has been successfully utilizing Global Crossing Internet
Protocol Virtual Private Network (IP VPN) service to
interconnect six facilities scattered across the country as part
of an agreement signed in August 2007.

Energias do Brasil operates in the states of Sao Paulo, Espirito
Santo, Mato Grosso do Sul, Tocantins and Santa Catarina. With
three power distribution companies -- Bandeirantes in Vale do
Paraiba, state of Sao Paulo; Escelsa in the state of Espirito
Santo; and Enersul, in the state of Mato Grosso do Sul --
Energias do Brasil distributes electrical power to more than
3.2 million customers in the country.

“We needed a solutions provider that was able to understand our
needs and provide us with agility and economy necessary for our
business,” said Vitor Gardiman, engineering, automation and
telecommunications chief at Energias do Brasil.  “Global
Crossing demonstrated high technical expertise during the
network implementation.  The company's agility and ability to
meet our demands were very positive,” he completed.

Through its IP VPN services, Global Crossing interconnects the
power provider's sites handling information processing and power
distribution management, enabling the convergence of voice, data
and video services on a single platform.

“By using our IP-based network, Energias do Brasil enjoys high-
speed, secure and reliable communications, enabling greater
productivity and cost reductions,” said Marcos Malfatti, Global
Crossing senior vice president of sales in Brazil.  “Our mission
is to understand our customers' needs, helping them keep the
focus on their core business, while we take care of their
communications infrastructure -- and that's exactly what we've
done for Energias do Brasil.”

Global Crossing IP VPN Service connects an enterprise's
worldwide locations into a single, protected corporate network
with true global reach, scalable connectivity, greater security,
multiple access options, a broad range of IP communication
services, and guaranteed quality of service (QoS).

                    About Energias do Brasil

Energias do Brasil is a holding that consolidates electrical
power assets in the areas of generation (Enernoba, Energest, EDP
Lajeado e Enerpeixe), commercialization (Enertrade) and
distribution (Bandeirante, Escelsa and Enersul).  The company is
controlled by EDP - Energias de Portugal, the world's fourth
largest wind energy player.

In 2007, Energias do Brazil registered BRL6.9 billion in gross
operational income.  Currently, the company distributes
approximately 25,000 GWh of electrical power for about
3.2 million customers.

               About Global Crossing Latin America

Global Crossing's Latin American business has operations in
Argentina, Brazil, Chile, Colombia, Ecuador, Panama, Peru,
Mexico, Venezuela and the United States (Florida).  In addition
to its IP-based fiber-optic network, Global Crossing's regional
infrastructure includes 15 metropolitan networks and 15 world-
class data centers located in the main business centers of Latin
America.

Global Crossing's reach and experience in Latin America allow it
to address the particularities of the region and deliver the
solutions each company needs.  The company provides services to
a variety of customers, including medium and large companies and
corporations, institutions and government entities, and
telecommunications operators.

                      About Global Crossing

Headquartered in Florham Park, New Jersey, Global Crossing Ltd.
(NASDAQ: GLBC) -- http://www.globalcrossing.com/-- provides
telecommunication  services over the world's first integrated
global IP-based network.  Global Crossing serves many of the
world's largest corporations, providing a full range of managed
data and voice products and services.  The company filed for
chapter 11 protection on Jan. 28, 2002 (Bankr. S.D.N.Y. Case No.
02-40188).  When the Debtors filed for protection from their
creditors, they listed US$25,511,000,000 in total assets and
US$15,467,000,000 in total debts.  Global Crossing emerged from
chapter 11 on Dec. 9, 2003.

Global Crossing's Latin American business has operations in
Argentina, Brazil, Chile, Colombia, Ecuador, Panama, Peru,
Mexico, Venezuela and the United States (Florida).  It also has
operations in the United Kingdom.

                         *     *     *

At Sept. 30, 2007, Global Crossing Ltd.'s balance sheet showed
total assets of US$2.6 billion, total debts of US$2.7 billion
and a US$74 million stockholders' deficit.

As reported in the Troubled Company Reporter-Latin America on
Nov. 8, 2007, Global Crossing Ltd. said in a statement that its
net loss increased 75% to US$89 million in the third quarter
2007, compared to US$51 million in the third quarter 2006.


GOL LINHAS: Cuts Fleet Plan in Line With Modernization Strategy
---------------------------------------------------------------
GOL Linhas Aereas Inteligentes S.A., the parent company of
Brazilian airlines GOL Transportes Aereos S.A. and VRG Linhas
Aereas S.A., has revised its fleet plan to continue its fleet
renewal and modernization strategy in accordance with its
disciplined growth plan.

The company reviewed and adjusted its fleet plan to better adapt
to recent fuel price increases and higher competition in the air
transportation industry, while also accelerating its fleet
renewal program (announced in December 2007) and improving its
low-cost structure.  In addition to operational changes to
reduce fuel consumption, such as reducing cruise flight speed
and shutting down one engine after landing, the company is
reducing its capacity growth.

In the third and fourth quarters 2008, consolidated domestic
ASKs are projected to be approximately 8 billion and 8.1
billion, respectively, a 5% sequential reduction and a 1%
sequential increase, respectively.  In the international market,
consolidated ASKs are projected to be approximately 1.6 billion
for the third and fourth quarters 2008.  For 2008, total ASKs
are projected to be approximately 41 billion, 32.5 billion in
the domestic market, and 8.5 billion in the international
market, a 5% reduction versus the company's previous guidance.

The company has reduced its fleet plan by two leased 737-800s in
2008.  For 2009, the fleet plan has reduced by five leased 737-
800s.  The fleet modernization plan guarantees that GOL's fleet
will maintain its status as one of the youngest and most modern
in the world. By the end of 2008, it is expected that the fleet
will be comprised entirely of Boeing 737 NGs, reducing the
average age of the fleet to 5.6 years.  At the end of 2012, 65
percent of the fleet will be comprised of 737-800 SFP aircraft,
reducing the average age to 5.5 years.

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

                         *     *     *

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

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

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

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

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

Fitch revised the rating outlook to negative.

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


ULTRAPAR PARTICIPACOES: Reports BRL104 Mln Net Income in 2Q 2008
----------------------------------------------------------------
Ultrapar Participacoes S.A. has reported its results for the
second quarter of 2008.

In the second quarter of 2008, Ultrapar was assigned an
investment grade rating by Moody's.  The company also took
additional steps towards growing its businesses, with the
announcement of the acquisition of Uniao Terminais and the
operational start-up of the oleochemical unit of Oxiteno,
located in Camacari.  The company also reported an improvement
in results in the quarter, with higher volumes,   EBITDA and net
earnings allowing a significant dividends distribution.

                           Highlights:

  -- Ultrapar's revenues grow in all business units in second
     quarter 2008 compared to second quarter 2007.

  -- The company's EBITDA amounted to BRL248 million in second
     quarter 2008, up 10% and 11% from second quarter 2007 and
     first quarter 2008, respectively.

  -- Net Earnings amounted to BRL104 million in second quarter
     2008, almost three times higher than second quarter 2007
     and up 15% from first quarter 2008.

  -- Distribution of BRL119 million in dividends corresponding
     to 61% of Ultrapar's first half of 2008 Consolidated Net
     Earnings.

Chief Executive Officer, Pedro Wongtschowski said, "In this
second quarter, we have made progress in implementing our growth
plan, with the completion of the construction of the
oleochemical unit at Oxiteno and the acquisition of the Uniao
Terminais by Ultracargo.  Through the acquisition of Uniao
Terminais, we aim to capture the strong demand for logistic
infrastructure in Brazil related to biofuels, agribusiness and
chemical products, consolidating Ultracargo's leading position
in the bulk liquids segment in South America.  In July, we began
operations at our oleochemical unit, strengthening Ultrapar's
growth strategy through increased scale and differentiated
technology.  In addition, Ultrapar obtained investment grade
rating by Moody's, reinforcing Ultrapar's position as a company
with strong cash generation and sound financial management."

Headquartered in Sao Paulo, Brazil, Ultrapar Participacoes S.A.
(NYSE: UGP) (BOVESPA: UGPA4) is a company with two main
operations: LPG distribution (through its fully-owned subsidiary
Ultragaz Participacoes Ltda.) and chemical production (through
its also fully-owned subsidiary Oxiteno S.A.).  A third smaller
but growing business is the transportation and storage of
chemicals and fuels, Ultracargo Operacoes Logisticas e
Participacoes Ltda., which completes Ultrapar's business
portfolio and reinforces the trend for further business
diversity in the long run.

                        *      *      *

As reported in the Troubled Company Reporter-Latin America on
May 23, 2008, Standard & Poor's Ratings Services has affirmed
its 'BB+' long-term corporate credit rating and its 'brAA+'
Brazil national scale rating on Ultrapar Participacoes SA.  At
the same time, S&P revised the outlook on both ratings to
positive from stable.



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

MARK & SOAMES: Holding Final Shareholders Meeting on Aug. 11
------------------------------------------------------------
Mark And Soames Ltd. will hold its final shareholders meeting on
Aug. 11, 2008, at 10:00 a.m., at the registered office of the
company .

These matters will be taken up during the meeting:

   1) accounting of the wind-up process, and

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

Mark And Soames's shareholders agreed on June 26, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

               David A.K. Walker and Lawrence Edwards
               c/o PricewaterhouseCoopers Cayman Islands
               P.O. Box 258
               Strathvale House, George Town
               Grand Cayman, Cayman Islands

Contact for inquiries:

               Skye Quinn
               Telephone: (345) 914-8678
               Fax: (345) 945-4237


ORIGIN INVESTORS: Proofs of Claim Filing Deadline Is Aug. 9
-----------------------------------------------------------
Origin Investors Ltd.'s creditors have until Aug. 9, 2008, to
prove their claims to Walkers SPV Limited, the company's
liquidator, or be excluded from receiving any distribution or
payment.

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

Origin Investors' shareholder decided on July 4, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

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

Contact for inquiries:

                 Anthony Johnson
                 Telephone: (345) 914-6314


PARMALAT SPA: NJ Court Denies Citigroup Bid to Dismiss Claims
-------------------------------------------------------------
United States Judge Jonathan N. Harris at the Bergen County
Superior Court in New Jersey denied a request by Citigroup Inc.
for a directed verdict dismissing the claims asserted by
Parmalat SpA.

This means that the trial will proceed to a jury verdict,
Parmalat said, in a news release.  Citigroup had requested that
the New Jersey Court rule on the case directly and absent a
jury.

Parmalat filed a US$2.2-billion suit against Citigroup for
contributing to Parmalat's bankruptcy in 2003.  Dr. Enrico
Bondi, appointed “extraordinary commissioner” for Parmalat's
cases, claimed that Citigroup aided and abetted a breach of
fiduciary duties by Parmalat insiders and helped hide its off-
balance-sheet debt.

Citigroup asserted counterclaims against Parmalat, denying any
wrongdoings and claimed that it was a victim of the fraud which
led to the Italian dairy giant's collapse in 2003.  “Citi is a
victim of Parmalat's fraud and we are confident the merits of
our position will be demonstrated at trial,” a Citigroup
spokesperson stated, according to Reuters.

Reuters notes that motions filed by a defendant to ask a judge
to dismiss the other side's claims when the plaintiff finishes
presenting evidence before the defendant conveys its case is not
unusual but often fails.

“I believe, with no lack of confidence, that it would be an
abuse of my discretion to grant the motion to dismiss the case
at this time,” Judge Harris said.

Judge Harris added a “rational juror” could conclude, based on
the evidence presented, that “misappropriation or looting” took
place, warranting damages.

          Appellate Division Denies Appeal on Evidence

Judge Jose L. Fuentes of the Appellate Division of the Superior
Court in New Jersey, in early July, denied Citigroup Inc.'s
request to appeal from an order that allows Parmalat SpA to
introduce evidence supporting its lawsuit against the Citigroup,
Chad Bray of Dow Jones Newswires reported.

According to Mr. Bray, Citigroup had objected to the inclusion
of a 2004 Italian financial police report listing all the
alleged misappropriations from 1992 to 2003 by Calisto Tanzi,
Parmalat's founder, his family, as well as the company's former
managers.

                       About Parmalat

Headquartered in Milan, Italy, Parmalat S.p.A.
-- http://www.parmalat.net/-- sells nameplate milk products
that can be stored at room temperature for months.  It also has
about 40 brand product lines, which include yogurt, cheese,
butter, cakes and cookies, breads, pizza, snack foods and
vegetable sauces, soups and juices.

The company's U.S. operations filed for chapter 11 protection on
Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139).  Gary
Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal &
Manges LLP, represent the Debtors.  When the U.S. Debtors filed
for bankruptcy protection, they reported more than
US$200 million in assets and debts.  The U.S. Debtors emerged
from bankruptcy on April 13, 2005.

Parmalat S.p.A. and its Italian affiliates filed separate
petitions for Extraordinary Administration before the Italian
Ministry of Productive Activities and the Civil and Criminal
District Court of the City of Parma, Italy on Dec. 24, 2003.
Dr. Enrico Bondi was appointed Extraordinary Commissioner in
each of the cases.  The Parma Court has declared the units
insolvent.

On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No.
04-14268, in the United States Bankruptcy Court for the Southern
District of New York.

Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat
Capital Finance Ltd., and Food Holdings Ltd.  Dairy Holdings and
Food Holdings are Cayman Island special-purpose vehicles
established by Parmalat S.p.A.  The Finance Companies are under
separate winding up petitions before the Grand Court of the
Cayman Islands.  Gordon I. MacRae and James Cleaver of Kroll
(Cayman) Ltd. serve as Joint Provisional Liquidators in the
cases.  On Jan. 20, 2004, the Liquidators filed Sec. 304
petition, Case No. 04-10362, in the United States Bankruptcy
Court for the Southern District of New York.  In May 2006, the
Cayman Island Court appointed Messrs. MacRae and Cleaver as
Joint Official Liquidators.  Gregory M. Petrick, Esq., at
Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq.,
at Janvey, Gordon, Herlands Randolph, represent the Finance
Companies in the Sec. 304 case.

The Honorable Robert D. Drain presides over the Parmalat
Debtors' U.S. cases.  On June 21, 2007, the U.S. Court granted
Parmalat permanent injunction.


PARMALAT SPA: Appeals Court Denies Bid to Bar Class Action Suit
---------------------------------------------------------------
The United States Second Circuit Court of Appeals of New York
denied Parmalat S.p.A.'s appeal from order by the U.S. District
Court for the Southern District of New York denying the
company's request for an injunction pursuant to Section 304 of
the Bankruptcy Code, Parmalat said in a company statement.

Parmalat's request had sought to preclude a purported class of
investors from proceeding with a class action against Parmalat
in the United States.

While recognizing that the class action filed in the United
States has been settled, the Second Circuit denied the appeal
from the District Court's ruling that the action would have been
permitted to proceed in the United States.  The Second Circuit
emphasized that any judgment obtained in the United States has
to be presented in the Italian bankruptcy court for ultimate
determination.

                       About Parmalat

Headquartered in Milan, Italy, Parmalat S.p.A.
-- http://www.parmalat.net/-- sells nameplate milk products
that can be stored at room temperature for months.  It also has
about 40 brand product lines, which include yogurt, cheese,
butter, cakes and cookies, breads, pizza, snack foods and
vegetable sauces, soups and juices.

The company's U.S. operations filed for chapter 11 protection on
Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139).  Gary
Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal &
Manges LLP, represent the Debtors.  When the U.S. Debtors filed
for bankruptcy protection, they reported more than
US$200 million in assets and debts.  The U.S. Debtors emerged
from bankruptcy on April 13, 2005.

Parmalat S.p.A. and its Italian affiliates filed separate
petitions for Extraordinary Administration before the Italian
Ministry of Productive Activities and the Civil and Criminal
District Court of the City of Parma, Italy on Dec. 24, 2003.
Dr. Enrico Bondi was appointed Extraordinary Commissioner in
each of the cases.  The Parma Court has declared the units
insolvent.

On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No.
04-14268, in the United States Bankruptcy Court for the Southern
District of New York.

Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat
Capital Finance Ltd., and Food Holdings Ltd.  Dairy Holdings and
Food Holdings are Cayman Island special-purpose vehicles
established by Parmalat S.p.A.  The Finance Companies are under
separate winding up petitions before the Grand Court of the
Cayman Islands.  Gordon I. MacRae and James Cleaver of Kroll
(Cayman) Ltd. serve as Joint Provisional Liquidators in the
cases.  On Jan. 20, 2004, the Liquidators filed Sec. 304
petition, Case No. 04-10362, in the United States Bankruptcy
Court for the Southern District of New York.  In May 2006, the
Cayman Island Court appointed Messrs. MacRae and Cleaver as
Joint Official Liquidators.  Gregory M. Petrick, Esq., at
Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq.,
at Janvey, Gordon, Herlands Randolph, represent the Finance
Companies in the Sec. 304 case.

The Honorable Robert D. Drain presides over the Parmalat
Debtors' U.S. cases.  On June 21, 2007, the U.S. Court granted
Parmalat permanent injunction.


PARMALAT SPA: Italian Ct. Starts Trial Against Tanzi, 53 Others
---------------------------------------------------------------
Italian Judge Eleonora Fiengo in Parma, Italy, granted in July
2008 the request of Enrico Bondi, chief executive officer of
Parmalat SpA, to seek cash for the company in a criminal trial
against Calisto Tanzi, founder of Parmalat, and 53 individuals
accused of fraud which led to Parmalat's 2003 bankruptcy, Sara
Gay Forden of Bloomberg News reported.

"The court upheld our request to receive damages from the
defendants in the trial," Manuela Cigna, Mr. Bondi's lawyer,
told Bloomberg.

Fabio Belloni, Mr. Tanzi's lawyer, stated that his client and
the other defendants did not oppose Mr. Bondi's request.  Judge
Fiengo also allowed 30,000 individual investors to seek redress,
Bloomberg added.

The decision is a victory for Mr. Bondi, Ms. Forden said, since
in a Milan criminal trial he had lost the right to seek damages
for market manipulation.  Additionally, the U.S. District Court
had also dismissed most of the claims against Citigroup Inc.,
Parmalat's bank, Bloomberg noted.

Mr. Bondi is seeking compensation for the EUR14,000,000,000, or
US$21,600,000,000, shortfall when Parmalat went bankrupt in
2003.  According to Bloomberg, the amount of the award will be
decided by the Parma Court at the end of the trial, along with a
guilty verdict.

In a subsequent ruling, Judge Fiengo transferred the case
against Cesare Geronzi, chairman of Mediobanca SpA, to Rome for
jurisdictional reasons, Bloomberg reported.  Mr. Geronzi was
charged with extortion and fraudulent bankruptcy, in connection
with the 1999 sale of Eurolat to Parmalat.

“Finally the court has upheld the request we made from the
beginning to move the trial to the competent jurisdiction,”
Ennio Amodio, Mr. Geronzi's lawyer, was quoted as saying.  "Now
the trial will be transferred to Rome, where we expect to
clarify that Cesare Geronzi had no responsibility for the
charges he is accused of."

                       About Parmalat

Headquartered in Milan, Italy, Parmalat S.p.A.
-- http://www.parmalat.net/-- sells nameplate milk products
that can be stored at room temperature for months.  It also has
about 40 brand product lines, which include yogurt, cheese,
butter, cakes and cookies, breads, pizza, snack foods and
vegetable sauces, soups and juices.

The company's U.S. operations filed for chapter 11 protection on
Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139).  Gary
Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal &
Manges LLP, represent the Debtors.  When the U.S. Debtors filed
for bankruptcy protection, they reported more than
US$200 million in assets and debts.  The U.S. Debtors emerged
from bankruptcy on April 13, 2005.

Parmalat S.p.A. and its Italian affiliates filed separate
petitions for Extraordinary Administration before the Italian
Ministry of Productive Activities and the Civil and Criminal
District Court of the City of Parma, Italy on Dec. 24, 2003.
Dr. Enrico Bondi was appointed Extraordinary Commissioner in
each of the cases.  The Parma Court has declared the units
insolvent.

On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No.
04-14268, in the United States Bankruptcy Court for the Southern
District of New York.

Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat
Capital Finance Ltd., and Food Holdings Ltd.  Dairy Holdings and
Food Holdings are Cayman Island special-purpose vehicles
established by Parmalat S.p.A.  The Finance Companies are under
separate winding up petitions before the Grand Court of the
Cayman Islands.  Gordon I. MacRae and James Cleaver of Kroll
(Cayman) Ltd. serve as Joint Provisional Liquidators in the
cases.  On Jan. 20, 2004, the Liquidators filed Sec. 304
petition, Case No. 04-10362, in the United States Bankruptcy
Court for the Southern District of New York.  In May 2006, the
Cayman Island Court appointed Messrs. MacRae and Cleaver as
Joint Official Liquidators.  Gregory M. Petrick, Esq., at
Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq.,
at Janvey, Gordon, Herlands Randolph, represent the Finance
Companies in the Sec. 304 case.

The Honorable Robert D. Drain presides over the Parmalat
Debtors' U.S. cases.  On June 21, 2007, the U.S. Court granted
Parmalat permanent injunction.


RETAIL REINSURANCE: Final Shareholders Meeting Is on Aug. 11
------------------------------------------------------------
Retail Reinsurance Company Ltd. will hold its final shareholders
meeting on Aug. 11, 2008, at 10:00 a.m., at the registered
office of the company.

These matters will be taken up during the meeting:

   1) accounting of the wind-up process, and

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

Retail Reinsurance's shareholder agreed on June 23, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

                Russell Smith
                c/o Chris Johnson Associates Ltd.
                80 Elizabethan Square
                Shedden Road, George Town
                Grand Cayman, Cayman Islands

Contact for inquiries:

                John D'Cunha
                P.O. Box 2499
                Grand Cayman, Cayman Islands
                Telephone: (345) 946-0820
                Fax: (345) 946-0864


SPEEDER FUND: To Hold Final Shareholders Meeting on Aug. 11
-----------------------------------------------------------
Speeder Fund will hold its final shareholders meeting on
Aug. 11, 2008, at 9:00 a.m., at the offices of DMS Corporate
Services Ltd., dms House, 20 Genesis Close, P.O. Box 1344,
George Town, Grand Cayman, Cayman Islands.

These matters will be taken up during the meeting:

   1) accounting of the wind-up process, and

   2) manner in which the books, accounts and documentation of
      the Company and of the Liquidator should be maintained and
      subsequently disposed of.

Speeder Fund's shareholder agreed on June 18, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidator can be reached at:

                DMS Corporate Services Ltd.
                c/o dms House, 20 Genesis Close
                P.O. Box 1344
                George Town, Grand Cayman
                Cayman Islands


WINJACK LIMITED: Sets Final Shareholders Meeting on Aug. 11
-----------------------------------------------------------
Winjack Ltd. will hold its final shareholders meeting on
Aug. 11, 2008.

The accounting of the wind-up process will be taken up during
the meeting.

Winjack's shareholder agreed on June 24, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidator can be reached at:

                Commerce Corporate Services Limited
                P.O. Box 694GT
                Grand Cayman, Cayman Islands
                Telephone: 949-8666
                Fax: 949-7904



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

GRUPO POSADAS: Fitch Affirms BB Rating on Senior Notes Due 2011
---------------------------------------------------------------
Fitch Ratings has affirmed the foreign currency and local
currency Issuer Default Ratings of Grupo Posadas, S.A.B. de
C.V., as well as the issue rating on the company's senior notes
due 2011 at 'BB'.  Fitch has also affirmed the national scale
rating of Posadas at 'A+(mex)', including all of its
'Certificados Bursatiles' issuances.  The outlook on all ratings
is stable.

The rating affirmation is based on Grupo Posadas' good operating
performance during 2007 and first half of 2008 as well as an
improving financial profile.  The company has continued to
perform positively, steadily growing its number of rooms while
maintaining occupancy rates stable and increasing revenue per
available room.   Posadas has based its hotel expansion strategy
mostly through lease and management agreements which require
less capital investments and related borrowing for the company,
helping it preserve a stable financial position.

The ratings reflect the company's solid business position,
strong brand name and multiple hotel formats.  Grupo Posadas'
presence in all major urban and coastal locations in Mexico,
consistent product offering and quality brand image have
resulted in occupancy levels that are above the industry average
in Mexico.  The use of multiple hotel formats allows the company
to target domestic and international business travelers as well
as tourists.  Operations are primarily located in Mexico, which
limits geographic diversification.  The ratings also consider
the industry's high correlation to economic cycles, which might
affect operating indicators negatively in downturns.

The ratings also consider an improved business mix with greater
diversification of revenues and EBITDA generation by segment as
the managed hotels, services segment and the vacation club
segment grow at higher rates than the traditional owned hotel
segment and become a more important part of the overall business
model.   Revenues from the vacation club have increased steadily
in recent years accounting for 17% of total revenues in 2007 and
are expected to represent a growing percentage of revenues in
the medium term.  The management segment represented 22% of
total revenues during the year.

During 2007, revenues increased 5.6% from the prior year
totaling US$548 million reflecting growth in the number of
hotels and rooms available combined with a better REVPAR as well
as increased revenues from its services and vacation club
segments.  While profitability during 2007 was lower than in the
previous year mainly as a result of the sale of some hotels in
2006 which helped push margins upward, EBITDA generation
increased during the year to US$134 million from US$126 million
in 2006.  Results for the first half of 2008 continue to be
positive, with revenues growing by 15% to US$332 million through
the first six months of the year and EBITDA reaching US$74
million.

Grupo Posadas faces a comfortable debt maturity schedule and has
a track record of positive free cash flow generation.  The
company recently issued approximately US$73 million in the local
markets to refinance upcoming maturities and existing debt,
improving its debt profile while also reducing funding costs.
At June 30, 2008, on-balance sheet debt reached US$399 million
of which 80% was dollar-denominated and the remainder was in
pesos.  Short-term debt represented 15% of total debt.  In
addition to that, the company had approximately US$194 million
of off-balance sheet debt related to hotel leases.  The company
has comfortable liquidity with a balance of cash and marketable
securities of US$43 million at June 30, 2008.

The ratio of total adjusted debt to EBITDAR reached 3.4 times
during the first six months of 2008, an improvement from 3.6x
from the same period in 2007.  Adjusted interest coverage
measured by the ratio of EBITDAR to financial expense plus rent
expense was 2.7 remaining relatively stable from past years.
For the remainder of 2008 and 2009, EBITDA growth should be
driven by higher revenues from the incorporation of new managed
hotels and the Fiesta Americana Vacation Club.  With debt levels
expected to remain stable due to relatively low capital
investment requirements, this should translate into a gradual
improvement in credit protection measures.

Capital expenditures reached US$43 million in 2007, related to
maintenance, conversion of hotels to the Vacation Club format
and technology updates.  During the year, the company opened 10
new hotels.  In the first half of 2008, the company has opened
five new hotels (four in Mexico and one in Argentina), and
capital expenditures have totaled US$17 million.  Grupo Posadas
plans to open approximately 53 new hotels over the next 36
months which will require a cash outlay by the company of
approximately US$8 million or 2% of the total estimated
investment of US$383 million, as the vast majority of new
openings will be under management and lease agreements.  The
company's growth strategy will be mainly focused towards its One
Hotels (Economy Class) and Fiesta Inn formats.

The company believes its investment in Mexicana brings strategic
advantages and synergies in information, technology,
commercialization and marketing and strengthens their leadership
in the Mexican tourism sector.  Fitch's rating takes into
consideration that Grupo Posadas won't invest additional funds
into Mexicana in the future.  For the year ended Dec. 31, 2007,
the company had US$548 million of revenues and US$134 million of
EBITDA.

Grupo Posadas SA de CV (BMV: POSADAS) -- http://www.posadas.com
-- is the largest hotel operator in Mexico, specializing for
over 37 years in providing high-quality hotel services aimed at
covering the specific needs of its hotel customers, currently
operates 107 hotels and approximately 19,368 rooms across
Mexico, the United States and South America.

Grupo Posadas operates under its Aqua, Fiesta Americana Grand,
Fiesta Americana, Fiesta Americana Vacation Club, Fiesta Inn,
One Hotel, Caesar Park, Caesar Business and The Explorean brands
in Brazil, Argentina and Chile.  The company owns a minority
equity stake (30%) in Grupo Mexicana de Aviacion S.A. de C.V.,
one of Mexico's two largest commercial airlines.


SEMGROUP LP: May Draw US$150 Million From BofA's DIP Financing
--------------------------------------------------------------
SemGroup L.P. said that the U.S. Bankruptcy Court for the
District of Delaware has approved a US$150 million interim
debtor-in-possession financing, which will be provided by a
group of banks led by Bank of America.

The interim funding will be used to fund letters of credit to
ensure the return of terms with certain product and service
suppliers.  The company is working with the lenders to finalize
the revised order and expect to present the final order to the
Court in an expedited fashion.

A final hearing to consider the balance of the US$250 million
DIP financing is scheduled for Aug. 18, 2008.

“Obtaining this interim DIP financing is an important step
forward in our Chapter 11 process,” said Terry Ronan, SemGroup
acting president and CEO.  “The additional reassurance it
provides to our creditors and employees will be essential in our
ability to execute the plan we have created to maximize value
for creditors.”  SemGroup believes the best alternative to
maximize value for creditors is to undertake a sales process
that will transition the company's businesses to well-
established companies that can carry forward SemGroup's mission.
“We have already received significant interest in our assets
because of our talented and experienced employees, unique
industry position, expansive customer base and premiere service
capabilities,” Mr. Ronan said.

SemGroup and certain of its North American subsidiaries filed
voluntary petitions for reorganization under Chapter 11 of the
U.S. Bankruptcy Code on July 22, 2008.

                  Parties Balk at DIP Financing

The Troubled Company Reporter said on Aug. 5, 2008, that a total
of 18 parties-in-interest object to the request of SemGroup L.P.
and its debtor-affiliates to obtain US$250,000,000 of senior
secured superpriority postpetition financing from Bank of
America.  The parties-in-interest are:

  * Ad Hoc Committee of Unsecured Creditors w/ Senior Notes;
  * Alon USA, LP;
  * Cardinal Engineering, Inc.;
  * Central Crude Corporation and Redwing Gas Systems Inc.;
  * CHS, Inc.;
  * General Electric Capital Corporation;
  * JMA Energy Company, L.L.C.;
  * LCS Production Company, and the Texas operators;
  * Merrill Lynch Capital Corporation and ML Commodities, Inc.;
  * Murfin Drilling Company, Inc.;
  * New Dominion, L.L.C.;
  * Prima Exploration, Inc.;
  * RZB Finance LLC;
  * Samson Resources Company, and affiliates;
  * Sunoco, Inc.;
  * The SemCrude US Term Lender Group;
  * Veenker Resources, Inc.; and
  * Williams NGL Marketing, LLC, and affiliates.

The Debtors filed with the Court a draft of the DIP Credit
Agreement, a copy of which is available for free at:

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

                       About SemGroup L.P.

SemGroup L.P. -- http://www.semgrouplp.com/-- is a midstream
service company providing the energy industry means to move
products from the wellhead to the wholesale marketplace.
SemGroup provides diversified services for end users and
consumers of crude oil, natural gas, natural gas liquids,
refined products and asphalt.  Services include purchasing,
selling, processing, transporting, terminaling and storing
energy.  SemGroup serves customers in the United States, Canada,
Mexico, Wales, Switzerland and Vietnam.  SemMaterials Mexico, S.
de R.L. de C.V., is a major subsidiary of the company.

SemGroup L.P. and its debtor-affiliates filed for Chapter 11
protection on July 22, 2008 (Bankr. D. Del. Lead Case No. 08-
11525).  These represent the Debtors' restructuring efforts:
John H. Knight, Esq., L. Katherine Good, Esq. and Mark D.
Collins, Esq. at Richards Layton & Finger; Harvey R. Miller,
Esq., Michael P. Kessler, Esq. and Sherri L. Toub, Esq. at Weil,
Gotshal & Manges LLP; and Martin A. Sosland, Esq. and Sylvia A.
Mayer, Esq. at Weil Gotshal & Manges LLP.  Kurtzman Carson
Consultants L.L.C. is the Debtors' claims agent.  The Debtors'
financial advisors are The Blackstone Group L.P. and A.P.
Services LLC.  Margot B. Schonholtz, Esq., and Scott D.
Talmadge, Esq., at Kaye Scholer LLP; and Laurie Selber
Silverstein, Esq., at Potter Anderson & Corroon LLP, represent
the Debtors' prepetition lenders.

SemGroup L.P.'s affiliates, SemCAMS ULC and SemCanada Crude
Company, sought protection under the Companies' Creditors
Arrangement Act (Canada) on July 22, 2008.  Ernst & Young, Inc.
The CCAA stay expires on Aug. 20, 2008.

SemGroup L.P.'s consolidated, unaudited financial conditions as
of June 30, 2007, showed US$5,429,038,000 in total assets and
US$5,033,214,000 in total debts.  In their petition, they showed
more than US$1,000,000,000 in estimated total assets and more
than US$1,000,000,000 in total debts.

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


SHARPER IMAGE: Withdraws Request for Aug. 18 Claims Bar Date
------------------------------------------------------------
The Sharper Image Corp., now known as TSIC, Inc., sought and
obtained the authority of the U.S. Bankruptcy Court for the
District of Delaware to withdraw without prejudice its request
to establish August 18, 2008 as the Claims Bar Date pursuant to
Rule 3003(c)(3) of the Federal Rules of Bankruptcy Procedure and
Section 502(b)(9) of the Bankruptcy Code.

According to Steven K. Kortanek, Esq., at Womble Carlyle
Sandridge & Rice, PLLC, in Wilmington, Delaware, the Debtor's
counsel had already advised parties-in-interest that it will
withdraw the Bar Date Motion.  He added that the Committee of
Unsecured Creditors supported the Debtors' request to withdraw
the Motion.

                   About Sharper Image

Based in San Francisco, California, Sharper Image Corp. --
http://www.sharperimage.com/-- is a multi-channel specialty
retailer.  It operates in three principal selling channels: the
Sharper Image specialty stores throughout the U.S., the Sharper
Image catalog and the Internet.  The company has operations in
Australia, Brazil and Mexico.  In addition, through its Brand
Licensing Division, it is also licensing the Sharper Image brand
to select third parties to allow them to sell Sharper Image
branded products in other channels of distribution.

The company filed for Chapter 11 protection on Feb. 19, 2008
(Bankr. D.D., Case No. 08-10322).  Steven K. Kortanek, Esq. at
Womble, Carlyle, Sandridge & Rice, P.L.L.C. represents the
Debtor in its restructuring efforts.  An Official Committee of
UnsecuredCreditors has been appointed in the case.  Whiteford
Taylor Preston LLC is the Committee's Delaware counsel
When the Debtor filed for bankruptcy, it listed total assets of
US$251,500,000 and total debts of US$199,000,000.

The Court extended the exclusive period during which the Debtor
may file a Plan through and including Sept. 16, 2008.  Sharper
Image sought and obtained the Court's approval to change its
name to "TSIC, Inc." in relation to an an Asset Purchase
Agreement by the Debtor with Gordon Brothers Retail Partners,
LLC, GB Brands, LLC, Hilco Merchant Resources, LLC, and Hilco
Consumer Capital, LLC.

(Sharper Image Bankruptcy News; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000)


SHARPER IMAGE: U.S. Trustee Opposes Letter Agreement With Hilco
---------------------------------------------------------------
Roberta A. DeAngelis, Acting United States Trustee for Region 3,
objects to the request for approval of the letter agreement
between the Official Committee of Unsecured Creditors of The
Sharper Image Corp. and the joint venture between Hilco
Organization and Gordon Brothers Group, LLC.  The U.S. Trustee
states that neither Section 105(a) of the Bankruptcy Code, nor
Rule 9019 of the Federal Rules of Bankruptcy Procedures,
authorize the relief sought by the Committee.

Rule 9019 authorizes the trustee to compromise estate claims
consistent with its terms.

              Committee Agrees not to Impede Sale;
            Hilco/GB Funds Unsecured Creditors' Trust

As reported by the Troubled Company Reporter on July 1, 20008,
the Official Committee of Unsecured Creditors seeks the Court's
approval of a letter agreement it entered into with the Joint
Venture, which memorializes the Committee's agreement to:

  (a) refrain from taking action to impede the consummation of
      the sale transaction, including, without limitation, the
      filing or prosecution of its objection to the sale
      transaction and the filing or prosecution of an appeal
      or motion to reconsider the Sale Order; and

  (b) waive the right to challenge the Joint Venture's conduct
      during the auction process or the change of its bid.

In exchange for the Committee's agreement not to impede the sale
transaction, the Joint Venture agreed to fund a trust account
for the Debtor's general unsecured creditors.  The Joint Venture
will transfer an amount equal to the lesser of US$500,000, and
10% of the gross royalties paid for the period of January 1,
2009, through December 31, 2009, from the intellectual property
acquired by Joint Venture.

              U.S. Trustee Opposes Letter Agreement

The U.S. Trustee points out that the Debtor is not a party to
the settlement.  She adds that the Committee is not the trustee,
and the Court has not vested it with standing to pursue claims
against the Joint Venture on behalf of the Debtor's estate.

The U.S. Trustee states that the Committee cannot sell its
procedural right to challenge the sale for a cash payment to
general unsecured creditors.  The rights of the Committee and
other parties-in-interest to object, on good faith grounds, to
asset sales under Section 363, are designed to protect the
estate's interest in the integrity of the sale process.  Those
rights were not intended for creditors to obtain cash payments
from purchasers or debtors, in exchange for the withdrawal of
sale objections.

Moreover, the U.S. Trustee submits that if the Court finds that
Rule 9019 governs the Motion, the proposed settlement should be
rejected under Myers v. Martin (In re Martin), 91 F.3d 389 (3d
Cir. 1996).  Under Martin, a proposed Rule 9019 settlement which
unfairly favors one creditor constituency over another should be
denied, the U.S. Trustee asserts.

According to the U.S. Trustee, the proposed settlement payment
to the Committee under the Letter Agreement is a payment in lieu
of an increase in the purchase price, payable by the Joint
Venture to the Debtor's estate.  Therefore, the Committee should
not be permitted to move its constituency ahead of allowed
administrative and unsecured priority creditors in priority of
distribution.

             Chagrin Objects to Lease Assignment

Chagrin Retail, LLC, continues to object to the Debtors' notice
of the continuation of auction of its unexpired leases.
Specifically, it opposes the assumption and assignment of a
lease agreement for premises at Eton Chagrin Boulevard in
Woodmere Village, Ohio.

According to Chagrin, the Debtor failed to provide adequate
assurance of future performance with respect to the assignee of
the Lease Agreement, as well as an adequate cure amount to
assume the Lease.  Moreover, the Debtor has given insufficient
time to conduct a meaningful assessment of the successful bidder
and its adequate assurance information.

                       About Sharper Image

Based in San Francisco, California, Sharper Image Corp. --
http://www.sharperimage.com/-- is a multi-channel specialty
retailer.  It operates in three principal selling channels: the
Sharper Image specialty stores throughout the U.S., the Sharper
Image catalog and the Internet.  The company has operations in
Australia, Brazil and Mexico.  In addition, through its Brand
Licensing Division, it is also licensing the Sharper Image brand
to select third parties to allow them to sell Sharper Image
branded products in other channels of distribution.

The company filed for Chapter 11 protection on Feb. 19, 2008
(Bankr. D.D., Case No. 08-10322).  Steven K. Kortanek, Esq. at
Womble, Carlyle, Sandridge & Rice, P.L.L.C. represents the
Debtor in its restructuring efforts.  An Official Committee of
UnsecuredCreditors has been appointed in the case.  Whiteford
Taylor Preston LLC is the Committee's Delaware counsel
When the Debtor filed for bankruptcy, it listed total assets of
US$251,500,000 and total debts of US$199,000,000.

The Court extended the exclusive period during which the Debtor
may file a Plan through and including Sept. 16, 2008.  Sharper
Image sought and obtained the Court's approval to change its
name to "TSIC, Inc." in relation to an an Asset Purchase
Agreement by the Debtor with Gordon Brothers Retail Partners,
LLC, GB Brands, LLC, Hilco Merchant Resources, LLC, and Hilco
Consumer Capital, LLC.

(Sharper Image Bankruptcy News; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000)


SHARPER IMAGE: Prohov Wants Cardholders' Claim Declared Priority
----------------------------------------------------------------
Frederic B. Prohov asks the U.S. Bankruptcy Court for the
District of Delaware to certify the class of all holders of
Sharper Image Gift Cards to proceed "as class for priority
treatment," and to receive full and immediate value of issued
gift cards brought.

According to Mr. Prohov, there are presumably thousands of Gift
Card Claims.  In the Debtor's operating report for the period
April 1, 2008 through April 30, 2008, it was disclosed that the
Debtor deferred a revenue of approximately US$34,000,000 on gift
cards and royalties.

Mr. Prohov relates that most of the claims are for US$500 less.
Thus, it is likely there are thousands of people with
outstanding gift cards that are not being honored at full price.
Under these circumstances, says Mr. Prohov, individual claimants
have neither the incentive nor the ability to prosecute their
rights through the claims administration process.

Counsel to Mr. Prohov, Christopher D. Loizides, Esq., at
Loizides, P.A., in Wilmington, Delaware, tells the Court that in
order to streamline that process and protect the rights of the
Gift Card Holders, Mr. Prohov asks that the process for the Gift
Card Claims be adjudicated in a single proceeding and be
declared to have priority treatment.

Mr. Loizides says that the priority given to the Gift Card
Holders is a question that should be answered uniformly for one
and all members of the class, and class certification should be
granted.

Mr. Loizides argues that Mr. Prohov's claims are identical to
the rest of the class, seeking the same type of relief -- a
declaration of priority and full value of the Gift Card without
diminished value.   Mr. Loizides relates that Mr. Prohov
suffered a loss of the value of his Gift Card, and seeks relief
consistent with, and not antagonistic to, the interest of the
other class members.

If the Gift Card Holders, says Mr. Loizides, are left to fend
for themselves through the claims administration process, the
Debtor will easily be able to defeat the claims not on their
merits, but by virtue of the fact that the small claims cannot
realistically be pursued without the assistance of counsel and
no single claimant acting alone has the economic incentive or
technical legal knowledge to pursue their claims.

        Debtor, Committee Object to Prohov's Requests

The Debtor, joined by the Official Committee of Unsecured
Creditors, opposes Mr. Prohov's motion for relief from the
automatic stay in order to commence an adversary proceeding and
pursue a class action, and objects to the request for class
certification.

According to the Debtor, if Mr. Prohov prevails in obtaining the
relief requested in the Class Action Motion, the class action
will go forward in the main case and an adversary proceeding
will be unnecessary.  On the other hand, if the Court denies the
Class Action Motion, Mr. Prohov cannot be afforded a second
opportunity to certify the proposed class in an adversary
proceeding.  Either way, the Class Action Motion has mooted Mr.
Prohov's need to commence an adversary proceeding.  Thus, by
definition, no cause exists to lift the automatic stay.

Moreover, the Debtors asserts that lifting the automatic stay
will prejudice the Debtor and its estate, by requiring it to
expend limited time and resources in an adversary proceeding
that is duplicative of the claims reconciliation process.  In
contrast, Mr. Prohov would suffer no harm if the Court denies
him relief from the automatic stay, the Debtor notes.

The Debtor contends that Mr. Prohov cannot demonstrate a
likelihood of success on the merits, or whether class action is
necessary under Rule 7023 of the Federal Rules of Bankruptcy
Procedure.  The Debtor insists that the certificate claims can,
and should be, adjudicated within the context of the bankruptcy
claims reconciliation process.  Accordingly, Mr. Prohov's
requests should be denied.

                        Prohov Reacts

Mr. Prohov argues that his case is "ripe for class
certification" and that the class should be certified.  He tells
the Court that his motions were filed promptly, and class
certification is timely and efficient.

According to Mr. Prohov, only class certification can achieve
the benefits of global priority adjudication of the thousands of
small consumer claims.  The Debtor's cases, he says, presents a
large number of small claims, weighing in favor of the
application of Rule 7023 to a contested matter and class
certification.

Mr. Prohov further points out that since the Debtor is no longer
in business and has no goodwill, a declaration of priority to
the consumer class does not add cost or delay to the Chapter 11
cases.  His requests were timely-filed, he states, thus class
certification for a declaration of priority does not interfere
with the administration of the estate.

                       About Sharper Image

Based in San Francisco, California, Sharper Image Corp. --
http://www.sharperimage.com/-- is a multi-channel specialty
retailer.  It operates in three principal selling channels: the
Sharper Image specialty stores throughout the U.S., the Sharper
Image catalog and the Internet.  The company has operations in
Australia, Brazil and Mexico.  In addition, through its Brand
Licensing Division, it is also licensing the Sharper Image brand
to select third parties to allow them to sell Sharper Image
branded products in other channels of distribution.

The company filed for Chapter 11 protection on Feb. 19, 2008
(Bankr. D.D., Case No. 08-10322).  Steven K. Kortanek, Esq. at
Womble, Carlyle, Sandridge & Rice, P.L.L.C. represents the
Debtor in its restructuring efforts.  An Official Committee of
UnsecuredCreditors has been appointed in the case.  Whiteford
Taylor Preston LLC is the Committee's Delaware counsel
When the Debtor filed for bankruptcy, it listed total assets of
US$251,500,000 and total debts of US$199,000,000.

The Court extended the exclusive period during which the Debtor
may file a Plan through and including Sept. 16, 2008.  Sharper
Image sought and obtained the Court's approval to change its
name to "TSIC, Inc." in relation to an an Asset Purchase
Agreement by the Debtor with Gordon Brothers Retail Partners,
LLC, GB Brands, LLC, Hilco Merchant Resources, LLC, and Hilco
Consumer Capital, LLC.

(Sharper Image Bankruptcy News; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000)



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

DELTA AIR: Adds Non-Stop Atlanta-Puerto Rico Flights
----------------------------------------------------
Delta Air Lines has added a nonstop frequency between
Hartsfield-Jackson Atlanta International Airport and San Juan,
Puerto Rico, starting Nov. 22, 2008.


This new flight complements Delta's daily nonstop service
between San Juan and Atlanta and New York-JFK, and will be the
fifth daily frequency Delta offers between Atlanta and San Juan.

“For more than 50 years, San Juan has been a very successful
market for Delta, and today is the destination with the highest
number of flights and passengers for our airline in the
Caribbean basin,” said Christophe Didier, Delta's vice president
for Sales and Government Affairs for Latin America and the
Caribbean.

Delta's added flight between Atlanta and San Juan from Nov. 22,
2008:


Flight        Departs             Arrives         Frequency
------        -------             -------         ---------
DL 417       Atlanta at         San Juan at         Daily
               8:30 a.m.          12:59 p.m.

DL 422       San Juan at         Atlanta at         Daily
                1:55 p.m.          4:59 p.m.

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.


JETBLUE AIRWAYS: To Defer Delivery of 10 EMBRAER 190 Aircraft
-------------------------------------------------------------
JetBlue Airways Corp. provides investor guidance for the third
quarter ending September 30, 2008 and full year 2008.

JetBlue announced service to these new city pairs:

City Pair                                Frequency   Start Date

Long Beach, CA - Portland, OR                1x      Oct. 9,
                                                     2008
Richmond, VA - Orlando, FL                   1x      Nov. 2,
                                                     2008
White Plains, NY - Tampa, FL                 1x      Nov. 2,
                                                     2008
Washington, DC (IAD) - West Palm Beach, FL   1x      Dec. 18,
                                                     2008
Washington, DC (IAD) - Fort Myers, FL        1x      Dec. 18,
                                                     2008
Washington, DC (IAD) - San Juan, Puerto Rico 1x      Dec. 20,
                                                     2008

JetBlue also announced it will defer 10 EMBRAER 190 aircraft
originally scheduled for delivery between 2009 through 2011 to
2016.

                   Aircraft Delivery Schedule

As of June 30, 2008, the company's fleet was comprised of 106
Airbus A320 aircraft and 36 EMBRAER 190 aircraft and it had on
order 133 aircraft, which are scheduled for delivery through
2015 (on a relatively even basis during each year), with options
to acquire 113 additional aircraft.

A full copy of the investor update, including the 2008 delivery
schedule and related financings for the remainder of the year is
available at: http://ResearchArchives.com/t/s?3079

                     About JetBlue Airways

Based in Forest Hills, New York, JetBlue Airways Corporation
(Nasdaq: JBLU) -- http://www.jetblue.com/-- is a passenger
airline that provides customer service primarily on point-to-
point routes.  As of Dec. 31, 2007, the company served 53
destinations in 21 states, Puerto Rico, Mexico and the
Caribbean.

JetBlue currently serves 53 cities with 600 daily flights.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
July 25, 2008, Moody's Investors Service downgraded the
Corporate Family and Probability of Default Ratings of JetBlue
Airways Corp. to Caa2 from Caa1, as well as the ratings of its
outstanding corporate debt instruments and certain Enhanced
Equipment Trust Certificates.  Moody's said the outlook is
negative.



===============================
T R I N I D A D  &  T O B A G O
===============================

HINDU CREDIT: Chief Stands by Claim on Resuming Control of Firm
---------------------------------------------------------------
Hindu Credit Union Co-Operative Society Ltd.'s President Harry
Harnarine has reiterated his claim that Provisional Liquidator
Ramdath Dave Rampersad and his legal representative, Dharmendra
Punwasee, had asked him to resume control of the firm's parent,
HCU Financial, Verne Burnett at The Trinidad Guardian reports.

As reported in the Troubled Company Reporter-Latin America on
Aug. 6, 2008, Mr. Rampersad denied news that he asked Mr.
Harnarine to resume control of the Hindu Credit Group of
Companies.  Mr. Harnarine said during the Hindu Credit
Depositors and Shareholders Group's meeting last week that Mr.
Rampersad's representatives asked him to resume management of
the Hindu Credit Group.

Mr. Harnarine told The Guardian in a telephone interview that
the request was made during a telephone conversation between
himself, Mr. Rampersad, and Mr. Punwasee.  The Guardian notes
that Mr. Harnarine said Messrs. Rampersad and Punwasee told that
he should resume management of the Hindu Credit group because
the court order didn't include the holding company, which Mr.
Harnarine declined due to a lack of court order.

According to The Guardian, Mr. Harnarine said that he told Mr.
Rampersad that Hindu Credit subsidiaries' employees were worried
about not getting their salaries.  Mr. Harnarine said Messrs.
Rampersad and Punwasee instructed him to meet with the
subsidiaries' chief executives and arrange for the salaries to
be paid.
Mr. Punwasee denied that the conversation with Mr. Harnarine
took place, The Guardian states.

Headquartered in Borough, Chaguanas, Hindu Credit Union Co-
Operative Society Limited -- www.ourhcu.com -- has an asset base
of more than US$1.7 billion and a membership totaling more than
200,000.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
July 28, 2008, the High Court of Trinidad and Tobago granted the
government full control of Hindu Credit as the company faces
financial difficulties, leaving depositors in limbo despite
requests from lawyers.  In June 2008, chartered accountants
Ernst and Young inspected Hindu Credit's books, accounts, and
records after a public outcry and calls for an internal audit.
Charles Mitchell, the Commissioner for Co-Operative Development,
represents Hindu Credit's depositors.


HINDU CREDIT: Inspection Team Finds Breaches in Loan Policies
-------------------------------------------------------------
The Trinidad and Tobago Express reports that an inspection team
led by Charles Mitchell, the Commissioner for Co-operative
Development, has found breaches in Hindu Credit Union Co-
Operative Society Ltd.'s “written policies with respect to loans
and investments”.

Membership is based on the purchase of US$25.00 in shares, The
Express relates, citing a report the inspection team submitted
to the Commissioner for Co-operative Development.  According to
the report, the members got “huge loans in excess of US$100,000”
on the day they bought the shares and got admitted into the
group.  The report says that “there was little or no Securities
found for these loans”.

According to The Express, the inspection team concluded that
“the core business of the Hindu Credit Union, which is to be a
financial intermediary, was replaced by the acquisition of
properties which placed the society in an adverse cash flow
problem.”

Headquartered in Borough, Chaguanas, Hindu Credit Union Co-
Operative Society Limited -- www.ourhcu.com -- has an asset base
of more than US$1.7 billion and a membership totaling more than
200,000.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
July 28, 2008, the High Court of Trinidad and Tobago granted the
government full control of Hindu Credit as the company faces
financial difficulties, leaving depositors in limbo despite
requests from lawyers.  In June 2008, chartered accountants
Ernst and Young inspected Hindu Credit's books, accounts, and
records after a public outcry and calls for an internal audit.
Charles Mitchell, the Commissioner for Co-Operative Development,
represents Hindu Credit's depositors.


NEAL & MASSY: Non-Functional, Says T&T Credit
---------------------------------------------
Sandra Chouthi at The Trinidad Guardian reports that the T&T
Credit Union Stabilization Fund's President, Dr. Anthony Elias,
alleged that The Neal and Massy South Credit Union Cooperative
Society Limited was “non-functional”.

The Neal and Massy South Credit was placed into liquidation by
the Commissioner of Co-operative Development in Trinidad and
Tobago in November 2007.

Dr. Elias said that after the liquidator's work is done, the T&T
Credit will receive claims for money that, under normal
conditions, would been lost by credit union members without
deposit guarantee insurance, The Guardian notes.  T&T Credit
will pay on these accounts of up to US$50,000 each on deposits
and shares in a credit union, The Guardian quoted Dr. Elias as
saying.

Dr. Elias told The Guardian in a telephone interview that The
Neal and Massy South Credit “fell into a situation where there
were no accounts”, adding that T&T Credit “could not get any
documentation” from the credit union and that it “just stopped
performing”.  Auditors couldn't reconcile The Neal and Massy
South Credit's accounts due to incomplete or unavailable
documentation, The Guardian says, citing Dr. Elias.

The Guardian relates that The Neal and Massy South Credit's
board had been the same for at least five years and that the
credit union didn't hold any yearly general meetings.

According to the report, Dr. Elias said that some of The Neal
and Massy South Credit's 350 members who worked for the Neal and
Massy Group are retired or have died.  “We need a list of those
who are deceased.  We have to issue cheques to their estate.  It
will take us two or three weeks to clean up the paperwork,” The
Guardian quoted Dr. Elias as saying.

The Commissioner of Co-operative Development must disclose that
The Neal and Massy South Credit has stopped to be “on the
books”, The Guardian cited Dr. Elias as saying.  “We are aware
the commissioner has already signed off on it,” Dr. Elias added.



* LatAm Credit Trends Strong But Challenges Are Ahead, S&P Says
---------------------------------------------------------------
(NEW YORK-Standard & Poor's-Aug. 6, 2008/Pam)

The first half of 2008 has been particularly positive for
sovereign credit trends in Latin America, said an article
published by Standard & Poor's Ratings Services.  However, the
article, which is titled "Smooth Sailing So Far For Latin
America, But The Global Storm Is Lurking," says that countries'
ability to maintain stability in the face of rising inflation
and worsening external conditions becomes less certain for 2009.

The report is a summary of a teleconference S&P hosted on July
30 that focused on the specter of rising inflation in the Latin
America region.

“Economic results in Latin America have been quite positive so
far this year, especially given the problems in the U.S. and the
global financial markets,” said Jane Eddy, a managing director
and regional practice leader for Latin America.  “Certainly,
much of the improved stability can be attributed to the
macroeconomic policies that countries implemented over the past
seven years and the prudent liquidity positions accrued by
corporations.”

With a handful of exceptions, economic policies in Latin America
have made the difference in fostering a regional stability that
seemed so elusive 20 years ago.  Indeed, the steadiness achieved
in Latin America as a whole allows for more room for error, and
if a shock from external markets were to happen, the capacity to
absorb it without severe damage is now greater.

One of the issues raised during the teleconference is whether
the region's central banks will be able to manage the difficult
trade-offs between containing inflation, maintaining economic
growth, and managing their floating exchange rates in such a way
that doesn't create a big disruption domestically.  “These are
not insurmountable challenges,” said credit analyst Joydeep
Mukherji, a director in S&P's Latin America Sovereigns group and
team leader.  “These are regular problems that the rest of the
world has faced in the past.  And this time, the good news in
Latin America is that the challenge is manageable.”

S&P's analysts on the call also expressed cautious optimism for
corporate and bank credit quality in Brazil and noted the
continued positive credit fundamentals among Chile's companies.
However, for corporates in Mexico, an issue raised was concern
about companies' ability to pass along higher commodity prices
to the consumer, which has put pressure on industries such as
consumer products, building materials, and homebuilding.


* S&P Downgrades Unlikely for LatAm, Central America & Caribbean
----------------------------------------------------------------
Ratings on diversified payment rights (DPR) and merchant voucher
financial future flow transactions, which are issued exclusively
in emerging markets, are likely to withstand various stress
scenarios, according to a recent report published by Standard &
Poor's Ratings Services.

“In our view, broader economic woes currently aren't having a
significant impact on the main sources of DPR and merchant
voucher assets,” said S&P's credit analyst Eric Gretch.  “We
believe these securitizations will keep performing in line with
their assigned ratings in today's climate.”

Although the performance of DPR and merchant voucher
transactions has been solid historically, recent troubles in the
broader structured markets have investors asking how S&P's
ratings on these transactions are likely to fare, both in the
current climate and if macroeconomic conditions worsen.  In
particular, market participants want to know:

  -- What is S&P's expected case going forward?

  -- What would cause a downgrade of a DPR or merchant voucher
     transaction?

  -- What would cause a DPR or merchant voucher transaction to
     default?

  -- What historical data provides the basis of S&P's analysis?

To try to answer these questions, S&P provided a detailed look
at the stresses it applies to DPR and merchant voucher
transactions when assigning and surveilling ratings and
assessing their likelihood of default.  The report also looks at
the potential impact of movements in the related financial
institution and sovereign ratings.

S&P's analysis suggests that that credit support levels for its
rated DPR and merchant voucher transactions overall remain
strong for the assigned ratings.

“In our view, overcollateralization, or the amount by which the
transactions' assets exceed their liabilities, is generally
sufficient to withstand at least a 50% drop in future DPR or
merchant voucher cash flows at the current rating levels,” Mr.
Gretch said.

Conditions in Latin America, Central America, and the Caribbean,
in particular, seem to support the performance of DPR and
merchant voucher transactions, and S&P doesn't currently expect
downgrades in those regions.  However, the strong links between
the U.S. and Central American economies could hurt DPR
transaction performance if worker remittances, trade, and
foreign direct investment decline substantially, and a similar
decline in tourism to this region could have a negative impact
on merchant voucher transaction performance.

S&P's more negative outlook on sovereigns and financial
institutions in parts of Eastern Europe, the Middle East, and
Africa (EEMEA) make downgrades of DPR or merchant voucher
transactions in that region more likely.  “While we expect
tourism to remain steady in Turkey, which would support the
country's merchant voucher transactions, we do project declines
in foreign direct investment for 2008, which could have a
negative impact on DPR securitizations,” S&P's credit analyst
Gary Kochubka said.

Diversified Payment Rights are securitizations of international
wire transfers, most commonly arising from export-related
financing, foreign direct investment, portfolio investment, and
remittances from citizens working abroad who send money back
home -- sources of business that have remained steady overall
despite the global liquidity squeeze.  “Some of these, such as
worker remittances, also offer the benefit of countercyclical
performance,” Mr. Kochubka noted.  “That is, their flows often
increase when domestic economies weaken.”

Similarly, securitizations of merchant vouchers -- which
represent financial obligations of credit card companies to pay
back businesses or financial institutions for purchases and cash
withdrawals made with foreign credit or debit cards -- rely
heavily on tourism and business travel, which currently remain
healthy in most emerging markets.

Mr. Kochubka said, “We will continue to monitor the performance
of the financial future flow transactions we rate and keep the
market informed of any changes in our expectations.”

The full report, “Scenario Analysis: Emerging Market Financial
Future Flow Securitizations Should Weather Upsets, Both At Home
And Abroad,” was published Aug. 5, 2008, as part of a series
that Standard & Poor's Ratings Services' Structured Finance
group is producing to provide insight into the circumstances
under which S&P's ratings may change, or transactions may
default, in a given asset class under a particular set of
macroeconomic circumstances.  S&P is producing these articles as
part of the New Actions initiative announced recently (“A
Listing Of S&P's New Actions Aimed At Strengthening The Ratings
Process,” published Feb. 7, 2008).  These New Actions
incorporate S&P's intent to provide “What if?” scenario analyses
that help investors better understand the risk profiles of
particular transactions.



                            ***********

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.  Marie Therese Profetana, Sheryl Joy P. Olano,
Rizande de los Santos, and Pamella Ritah K. Jala, Editors.

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

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

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

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


           * * * End of Transmission * * *