TCRLA_Public/080814.mbx          T R O U B L E D   C O M P A N Y   R E P O R T E R

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

            Thursday, August 14, 2008, Vol. 9, No. 161

                             Headlines


A R G E N T I N A

ALLIS-CHALMERS: Cancels Merger Agreement with Bronco Drilling
ALLIS-CHALMERS: Bronco Deal Wrap-Up Cues Moody's B2 CF Rating
BANCO HIPOTECARIO: S&P Lowers Counterparty Credit Ratings to B
BANCO PATAGONIA: S&P Cuts B+ Counterparty Credit Ratings to B
C Y C: Proofs of Claim Verification Deadline Is Nov. 19

CAJA DE VALORES: S&P Affirms Global Scale Rating at BB-/Stable
DANA CORP: Settles Allen County's Claim for US$1,750,000
DELTA AIR: Gets Unconditional Clearance From European Commission
DELTA AIR: To Hold Special Stockholders' Meeting on September 25
DELTA AIR: Trial for Comair 5191 Crash Lawsuits Canceled

DELTA AIR: Drops Springfield-Cincinnati Route & Stewart Flights
DELTA AIR: Cancels Freedom CRJ-900 Delta Connection Agreement
JAGUAR ARGENTINA: Proofs of Claim Verification Is Until Sept. 19
TEC CONS: Files for Reorganization in Buenos Aires Court
TELECOM ARGENTINA: Expects 15% Revenue Growth From Capex in 2008


B A H A M A S

ULTRAPETROL (BAHAMAS): Earns US$11.7 Mil. in 2008 Second Quarter


B E L I Z E

CONTINENTAL AIRLINES: S&P Affirms 'B' Rating; Off CreditWatch


B E R M U D A

ADVANCED MICRO: Moody's Lowers Corporate Family Ratings to B2
GAP INC: Net Sales Down 5% to US$998MM for Period Ended Aug. 2
SYNCORA HOLDINGS: Fitch Revises Watch to Positive From Evolving
VALIDUS HOLDINGS: S&P Assigns 'BB+' Rating on Subordinated Debt


B O L I V I A

* BOLIVIA: Reaches Deal to Buy Shell Units for Nationalization


B R A Z I L

AES CORP: Sees Trouble Ahead in Banco Nacional's Brasiliana Sale
AMERICA LATINA: Net Income Grows to BRL105.9 Mln in 2nd Quarter
BANCO CRUZEIRO: Reports BRL39.6MM Net Profit in Second Quarter
BANCO NACIONAL: Okays BRL132.3 Mil. Financing for Vista Alegre
BRASKEM SA: To Build Thermal Treatment Plant in Porto Alegre

CIA. DE SANEAMENTO: Sao Paulo Agency Okays Tariff Readjustment
COMPANHIA ENERGETICA: Reports BRL186.6MM 2nd Quarter Net Income
GLOBO COMUNICACAO: S&P Ups Corp. Credit Ratings to BBB- From BB+
GOL LINHAS: Incurs BRL171.7MM Consolidated Net Loss in 2Q 2008
PROPEX INC: Wants Plan-Filing Deadline Extended to October 20

SUN MICROSYSTEMS: Moody's Confirms Ba1 Corporate Family Rating
TAM SA: Reports 72.5% International Market Share for July 2008
TAM SA: Net Income Ups 2% to BRL50.2 Million in 2nd Quarter 2008

* BRAZIL: Government Okays Concession Agreement for Jirau Plant


C A Y M A N  I S L A N D S

MONITOR OIL: Files Chapter 11 Plan And Disclosure Statement
NS INVESTMENTS II: Proofs of Claim Filing Deadline is Aug. 16
NS INVESTMENTS III: Proofs of Claim Filing Is Until Aug. 16
NS INVESTMENTS IV: Deadline for Claims Filing Is Aug. 16
NS INVESTMENTS V: Proofs of Claim Filing Deadline Is Aug. 16

NS INVESTMENTS VII: Proofs of Claim Filing Is Until Aug. 16
NS INVESTMENTS IX: Proofs of Claim Filing Deadline Is Aug. 16
NS INVESTMENTS XII: Deadline for Claims Filing Is Aug. 16
NS INVESTMENTS XIII: Proofs of Claim Filing Is Until Aug. 16
NS INVESTMENTS XV: Proofs of Claim Filing Deadline Is Aug. 16

NS INVESTMENTS XVI: Deadline for Claims Filing Is Aug. 16
PARMALAT SPA: Parma Court Starts Trial Against Tanzi, 53 Others
SEAROCK PLUS: Deadline for Proofs of Claim Filing is Aug. 16


C H I L E

WARNER MUSIC: International Revenue Up 17.2% in Third Qtr. 2008


C O S T A  R I C A

* COSTA RICA: Improved Debt Cues Moody's Positive Outlook Shift


H O N D U R A S

SBARRO INC: S&P Cuts Rtg. to 'CCC+' on Covenant Compliance Worry


M E X I C O

CLEAR CHANNEL: Implements Stock Fund Blackouts Prior to Merger
EMPRESAS ICA: Bags Construction Contracts for MXN642.6 Million
RADIOSHACK CORP: To Offer US$300 Mil. Convertible Senior Notes
RADIOSHACK CORP: Fitch to Rate Planned US$300MM Conv. Notes 'BB'
LEAR CORP: Reports US$18.3 Mln Net Income in Second Quarter 2008
SEMGROUP LP: Court OKs Use of Cash Collateral for White Cliff

SEMGROUP LP: Pioneer Asserts US$30 Million Pre-Bankruptcy Claims
SEMGROUP LP: U.S. Trustee Forms Seven-Member Creditors' Panel
SEMGROUP LP: Five Canadian Units File Separate CCAA Petitions
SEMGROUP LP: Monitor Provides Update on CCAA Proceedings


P U E R T O  R I C O

JETBLUE AIRWAYS: Teams With Western Union for Easy Cash Payment
MAXXAM INC: June 30 Balance Sheet Upside-Down by US$306.3 Mil.


T R I N I D A D  &  T O B A G O

HINDU CREDIT: Clients Start Repaying Loans
HINDU CREDIT: TTD200 Million Deal With CL Financial Fails
HINDU CREDIT: Robin Montano Sues Harry Harnarine


V E N E Z U E L A

NORTHWEST AIRLINES: Obtains Clearance from European Commission
NORTHWEST AIRLINES: Meeting to Vote on Delta Merger Set Sept. 25
PETROLEOS DE VENEZUELA: Gets Share on Ventures; Gas Projects

* Upcoming Meetings, Conferences and Seminars


                          - - - - -


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

ALLIS-CHALMERS: Cancels Merger Agreement with Bronco Drilling
-------------------------------------------------------------
Allis-Chalmers Energy Inc. and Bronco Drilling Company Inc.
have terminated their Agreement and Plan of Merger relating to
the proposed acquisition of Bronco by Allis-Chalmers.  Allis-
Chalmers and Bronco agreed to terminate the merger agreement in
light of  indications that Bronco stockholders would not adopt
the merger agreement.

?The management and board of directors of Allis-Chalmers
strongly believed in the benefit of a combination with Bronco,?
Micki Hidayatallah, Allis-Chalmers' Chairperson and Chief
Executive Officer, stated.  ?The consolidated entity would have
been a diversified international provider of oilfield services
to its customers.  We regret that we have entered into a
termination agreement based on public filings by several
institutional holders of Bronco stock who did not recognize the
merits of the transaction.  I would like to extend my best
wishes to Frank Harrison, the board of directors of Bronco and
their management team that worked so diligently with us in an
effort to achieve our shared vision for the benefit of all our
stakeholders.?

?While Bronco management and its board of directors continue to
believe in the strategic rationale supporting a combination with
Allis-Chalmers, it now seems clear that it is unlikely we will
achieve the requisite votes needed to approve the merger,? Frank
Harrison, Bronco Drilling's Chairman and Chief Executive
Officer, stated.  ?I greatly appreciate the work of all of the
individuals involved in this transaction and want to wish Micki
and the Allis-Chalmers team the best in all their future
endeavors.?

            Cancellation of Special Stockholders Meetings

In connection with the termination of the Merger Agreement,
Allis-Chalmers and Bronco Drilling disclosed that their boards
of directors have canceled their special meetings of
stockholders, both of which were scheduled to occur on Aug. 14,
2008, at 9:00 a.m. (Central Time).  The purpose of the Bronco
Drilling special meeting was to adopt the Merger Agreement, and
the purpose of the Allis-Chalmers special meeting was to approve
the issuance of 16,846,500 shares of Allis-Chalmers common stock
to stockholders of Bronco Drilling in connection with the
merger.

                    About Bronco Drilling Company

Headquartered in Edmond, Oklahoma, Bronco Drilling Company Inc.
(NASDAQ/GM:BRNC) -- http://www.broncodrill.com/is a publicly
held company.  The company is a provider of contract land
drilling and workover services to oil and natural gas
exploration and production companies.

                        About Allis-Chalmers

Headquartered in Houston, Texas, Allis-Chalmers Energy Inc.
(NYSE: ALY) -- http://www.alchenergy.com-- is an oilfield
services company.  It provides services and equipment to oil and
natural gas exploration and production companies, domestically
primarily in Texas, Louisiana, New Mexico, Colorado, Oklahoma,
Mississippi, Wyoming, Arkansas, West Virginia, offshore in the
Gulf of Mexico, and internationally primarily in Argentina and
Mexico.  Allis-Chalmers provides rental services, international
drilling, directional drilling, tubular services, underbalanced
drilling, and production services.


ALLIS-CHALMERS: Bronco Deal Wrap-Up Cues Moody's B2 CF Rating
-------------------------------------------------------------
Moody's Investors Service has affirmed the ratings for Allis-
Chalmers Energy Inc. after the company's announcement that it
has terminated its proposed merger with Bronco Drilling Company
Inc. (not rated).  Ratings affirmed are Allis-Chalmers' B2
Corporate Family Rating, B2 Probability of Default Rating, and
B2 (LGD 4, changed to 57% from 55%) senior unsecured note
ratings.  At the same time, Moody's withdrew the B2 (LGD 4, 55%)
rating assigned to Allis-Chalmers' proposed US$350 million
senior unsecured notes.  The rating outlook remains positive.

The rating affirmation follows Allis-Chalmers' and Bronco's
termination of their merger agreement.  Had the transaction been
completed, the Bronco acquisition would have represented Allis-
Chalmers' largest acquisition to date and its first entry into
the contract drilling market in the U.S.  Despite the merger
termination, Moody's expects that Allis-Chalmers will continue
to grow through acquisitions, including targets in the domestic
and international land contract drilling markets, well as
organically.  Management has stated that it intends to issue
equity to fund a meaningful portion of material acquisitions,
and Moody's notes that the Bronco acquisition would have
included a substantial equity component (about 50%).

The positive outlook continues to reflect the company's
increasing scale and diversification, which are indicative of a
higher rating, and management's track record of financing
material acquisitions with a substantial equity component.
Allis-Chalmers has continued to increase its scale and
diversification, both by product line and geographically.  While
the lion's share of this increased scale has been achieved
through acquisitions, recently the company has also been
increasing its growth organically.  Management's demonstrated
willingness to issue equity has provided a degree of financial
cushion partially mitigating the risks associated with Allis-
Chalmers' aggressive growth strategy.  These risks include
valuation and performance risk inherent to a proportionally high
level of acquisitions priced during fairly robust sector
conditions, event and integration risk, and business and
political risk associated with step-outs into new business lines
and regions with substantial political risk.

An upgrade of Allis-Chalmers' B2 Corporate Family Rating over
the medium term will depend on the company continuing to finance
material acquisitions with a meaningful equity component;
generating improved results from its recently restructured
rental tools business, which has performed below expectations;
achieving projected earnings from its organic growth projects,
including its newbuild program in Argentina and its expansion
into emerging U.S. shale plays and into certain international
markets; and maintaining conservative financial leverage, with
debt/EBITDA maintained within 3x.  Weaker than expected
operating results or an unfavorable change in financial policies
could result in the outlook returning to stable.

Headquartered in Houston, Texas, Allis-Chalmers Energy Inc.
(NYSE: ALY) -- http://www.alchenergy.com-- is an oilfield
services company.  It provides services and equipment to oil and
natural gas exploration and production companies, domestically
primarily in Texas, Louisiana, New Mexico, Colorado, Oklahoma,
Mississippi, Wyoming, Arkansas, West Virginia, offshore in the
Gulf of Mexico, and internationally primarily in Argentina and
Mexico.  Allis-Chalmers provides rental services, international
drilling, directional drilling, tubular services, underbalanced
drilling, and production services.


BANCO HIPOTECARIO: S&P Lowers Counterparty Credit Ratings to B
--------------------------------------------------------------
Standard & Poor's Ratings Services has lowered the long-term
counterparty credit ratings on two Argentine banks, following
the downgrade of the Republic of Argentina to 'B' from 'B+'.
The global scale ratings on Banco Hipotecario S.A. and Banco
Patagonia S.A. were lowered to 'B' from 'B+', and the national
scale ratings were lowered to 'raA+' from 'raAA-'.  The outlooks
are stable.

?The downgrades of the banks are prompted by the close linkage
between the credit quality of the sovereign and that of the
financial system in Argentina,? said S&P's credit analyst
Sebastian Liutvinas.

The downgrade reflects Argentina's increasing economic
challenges.  In particular, inflation and fiscal and financial
strain have increased while the likelihood of the government
taking prompt corrective measures to staunch the loss of
creditworthiness remains low.

Headquartered in Buenos Aires, Argentina, Banco Hipotecario SA
-- http://www.hipotecario.com.ar-- is an Argentinean commercial
bank and specialty mortgage provider.  Banco Hipotecario's
business lines include credit lines for consumers, short-term
financing for exporting companies, factoring services, deposit
accounts, purchase and sale of foreign currency, custodial
services, safe deposit box rentals, payroll bank accounts,
securities brokerage services and sales of insurance through
authorized agents and companies.  The bank launched this new
series of products and services as an alternative to its
mortgage loans business, which as a result of the economic
crisis, came to a temporary halt in 2002.  In late 2003, and in
the light of the favorable trends shown by economic variables,
Banco Hipotecario started to offer new housing mortgage loans.
The bank's subsidiaries consist of BHN Sociedad de Inversion
Sociedad Anonima.


BANCO PATAGONIA: S&P Cuts B+ Counterparty Credit Ratings to B
-------------------------------------------------------------
Standard & Poor's Ratings Services has lowered the long-term
counterparty credit ratings on two Argentine banks, following
the downgrade of the Republic of Argentina to 'B' from 'B+'.
The global scale ratings on Banco Hipotecario S.A. and Banco
Patagonia S.A. were lowered to 'B' from 'B+', and the national
scale ratings were lowered to 'raA+' from 'raAA-'.  The outlooks
are stable.

?The downgrades of the banks are prompted by the close linkage
between the credit quality of the sovereign and that of the
financial system in Argentina,? said S&P's credit analyst
Sebastian Liutvinas.

The downgrade reflects Argentina's increasing economic
challenges.  In particular, inflation and fiscal and financial
strain have increased while the likelihood of the government
taking prompt corrective measures to staunch the loss of
creditworthiness remains low.

Banco Patagonia specializes in public offerings of
securitizations.  It became Argentina's fifth largest locally
owned private bank through its purchase of Lloyds TSB Argentina
in late 2004.  The bank operates through 139 branches and has
202 ATM machines.


C Y C: Proofs of Claim Verification Deadline Is Nov. 19
-------------------------------------------------------
Stenner y Orella, the court-appointed trustee for C y C Car SA's
bankruptcy proceeding, will be verifying creditors' proofs of
claim until Nov. 19, 2008.

Stenner y Orella will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 12 in Buenos Aires, with the assistance of Clerk
No. 24, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections
and challenges that will be raised by C y C and its
creditors.

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

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

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

Stenner y Orella is also in charge of administering C y C's
assets under court supervision and will take part in their
disposal to the extent established by law.

The debtor can be reached at:

      C y C Car SA
      Cordoba 645
      Buenos Aires, Argentina

The trustee can be reached at:

      Stenner y Orella
      Uruguay 667
      Buenos Aires, Argentina


CAJA DE VALORES: S&P Affirms Global Scale Rating at BB-/Stable
--------------------------------------------------------------
Standard & Poor's Ratings Services has affirmed its 'BB-' global
scale rating on Caja de Valores S.A., Argentina's central
securities depository.

S&P also said that the outlook on Caja de Valores remains
stable.

?The affirmation is based on Caja's critical role and good track
record in serving the country's capital markets,? noted S&P's
credit analyst Delfina Cavanagh.  The ratings also consider Caja
de Valores's low-risk operations as custody, registrar agent,
and paying agent, strong financial profile, and adequate
operating safeguards, which include adequate information
technology and proper insurance against fraud or theft.
Offsetting those positive factors is the somewhat high level of
systemic risk in Argentina, which causes profits to be uneven
during financial and economic crises.  The counterparty credit
rating assesses its ability and willingness to satisfy its
financial obligations in a timely manner, including the
operational risks that might impair its business franchise or
financial profile.

Eligible participants (financial institutions) deposit
government and corporate securities in Caja de Valores.  They
make their deposits in the name of the beneficial owner
(investors).  Caja de Valores' primary responsibility is to
safekeep government bonds and corporate securities.

With global market turbulence affecting local capital markets,
the Merval Index -- the main local stock index--grew 2.9% in
2007, the smallest increase since the 2002 devaluation.  The
volume of securities under its custody increased 3% in 2007,
hitting a new record.  The face value of securities under
custody was ARS332.9 billion as of December 2007.  Almost all
securities held in custody are either mmobilized or
dematerialized, with less than 1% of the total consisting of
physical certificates.  This reduces some of the operating risks
embedded in the day-to-day handling of physical securities and
their possible deterioration, resulting in lower operating
expenses if combined with adequate and timely data-processing
capabilities, as is the case with Caja de Valores.

Caja de Valores has three lines of defense to protect itself
from operational losses:

   * A strong balance sheet, characterized by a liquid investment
     portfolio and solid capital.

   * Insurance coverage for up to US$117 million, mostly covering
     the operating risks embedded in its operations.

   * Caja de Valores' shareholders, Bolsa and Merval, provide a
     guarantee for up to ARS60 million.

In 2007, market turbulence partially affected results in the
local capital market.  Nevertheless, because of its diversified
portfolio revenue, it registered a 48.4% increase in total
returns, posting a 5.6% return on assets as of Dec. 31, 2007,
which compares favorably with 4.5% at year-end 2006.  On the
other hand, capitalization remains strong, with 25.8% of total
capital to assets and an adequate level of reserves fully
available in case of extraordinary losses that might erode the
share capital.

The still-high systemic risk in Argentina and the possibility of
sovereign interference with Caja de Valores' operations are a
few of its main weaknesses.

The stable outlook incorporates its conservative operating
philosophy, diverse revenues -- based on its different revenue
sources, such as numbering agent, registrar and paying agent,
custody agent, and trustee, among others -- and strong financial
profile, which have proven to be important buffers against
inherent operating risks in Argentina.  ?Ratings could be raised
if the country's financial operating environment continues
improving,? Ms. Cavanagh added.  ?Nevertheless, ratings could be
pressured if a direct sovereign intervention impairs Caja's
business or systemic risks increase.?

Caja de Valores SA -- http://www.cajval.sba.com.ar/-- began its
operations in 1994 and has positioned itself as the Central
Securities Depository in Argentina.  It provides service for
recovery of capital and/or interest which stems from government
bonds.


DANA CORP: Settles Allen County's Claim for US$1,750,000
--------------------------------------------------------
Dana Holding Corporation paid the Allen County Treasurer's
Office US$1,750,000 for the county's prepetition claims arising
from tax payments, the Indiana NewsCenter reported.  According
to the report, the settlement money will go into the county tax
collections fund and will be distributed to units receiving
Allen County property tax monies.

?We were able to successfully resolve this matter without
litigation, which could have taken a lot of time and cost the
taxpayers a lot of money,? Allen County Treasurer Robert Lee
told the Indiana NewsCenter.

                            About DANA

Based in Toledo, Ohio, Dana Corporation -- http://www.dana.com/
-- designs and manufactures products for every major vehicle
producer in the world, and supplies drivetrain, chassis,
structural, and engine technologies to those companies.  Dana
employs 46,000 people in 28 countries.  Dana is focused on being
an essential partner to automotive, commercial, and off-highway
vehicle customers, which collectively produce more than 60
million vehicles annually.

Dana has facilities in China in the Asia-Pacific, Argentina in
the Latin-American regions and Italy in Europe.

The company and its affiliates filed for chapter 11 protection
on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354).  As of
Nov. 30, 2007, the Debtors listed US$7,131,000,000 in total
assets and US$7,665,000,000 in total debts resulting in a total
shareholders' deficit of US$534,000,000.

Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day,
in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq.,
Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in
Cleveland, Ohio, represent the Debtors.  Henry S. Miller at
Miller Buckfire & Co., LLC, served as the Debtors' financial
advisor and investment banker.  Ted Stenger from AlixPartners
served as Dana's Chief Restructuring Officer.

Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel
LLP, represens the Official Committee of Unsecured Creditors.
Fried, Frank, Harris, Shriver & Jacobson, LLP served as counsel
to the Official Committee of Equity Security Holders.  Stahl
Cowen Crowley, LLC served as counsel to the Official Committee
of Non-Union Retirees.

The Debtors filed their Joint Plan of Reorganization on
Aug. 31, 2007.  On Oct. 23, 2007, the Court approved the
adequacy of the Disclosure Statement explaining their Plan.
Judge Burton Lifland of the U.S. Bankruptcy Court for the
Southern District of New York entered an order confirming the
Third Amended Joint Plan of Reorganization of the Debtors on
Dec. 26, 2007.

The Debtors' Third Amended Joint Plan of Reorganization was
deemed effective as of Jan. 31, 2008.  Dana Corp., starting on
the Plan Effective Date, operated as Dana Holding Corporation.

(Dana Corporation Bankruptcy News, Issue No. 79; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000)

                           *     *     *

In February 2008, Standard & Poor's Ratings Services assigned
its 'BB-' corporate credit rating to Dana Holding Corp.
following the company's emergence from Chapter 11 on Feb. 1,
2008.  The outlook is negative.  At the same time, Standard &
Poor's assigned Dana's US$650 million asset-based loan revolving
credit facility due 2013 a 'BB+' rating (two notches higher than
the corporate credit rating) with a recovery rating of '1',
indicating an expectation of very high recovery in the event of
a payment default.  In addition, S&P assigned a 'BB' bank loan
rating to Dana's US$1.43 billion senior secured term loan with a
recovery rating of '2', indicating an expectation of average
recovery.

Moody's Investors Service affirmed the ratings of the
reorganized Dana Holding Corporation as: Corporate Family
Rating, B1; Probability of Default Rating, B1.  In a related
action, Moody's affirmed the Ba3 rating on the senior secured
term loan and raised the rating on the senior secured asset
based revolving credit facility to Ba2 from Ba3.  The outlook is
stable.  The financing for the company's emergence from Chapter
11 bankruptcy protection has been funded in line with the
structure originally rated by Moody's in a press release dated
Jan. 7, 2008.


DELTA AIR: Gets Unconditional Clearance From European Commission
----------------------------------------------------------------
Delta Air Lines, Inc. and Northwest Airlines Corporation
received, on Aug. 6, 2008, unconditional clearance from the
European Commission on the airlines' proposed merger.

The Commission, which is the regulatory arm of the European
Union, noted that its investigation found the proposed
transaction ?would not impede effective competition in Europe or
the trans-Atlantic?.

The airlines only offer overlapping direct service between
Amsterdam-Atlanta, Amsterdam-New York and Paris-Detroit, and
talks with competitors and customers did not flag antitrust
problems on these routes, the Commission said, according to The
Associated Press.

Both Delta and Northwest are part of the SkyTeam alliance,
sharing flights with Air France, KLM, Alitalia and Continental
Airlines, among others.  Delta flies to 119 international
destinations including 32 cities in the EU territory, reports
the AP.

?Approval from the European Commission for the merger is another
important step toward completing our pro-competitive merger with
Northwest. . . which will offer greater access to destinations
across the globe,? Delta's chief executive officer Richard
Anderson said in a statement posted on Delta's Web site.

?We continue to work closely with the U.S. Department of Justice
and remain confident that we will be able to finalize the merger
by the end of the year,? Mr. Anderson added.

           NWA Union Officials Testify Before Lawmakers
               on Proposed Delta-Northwest Merger

In a hearing in Washington on July 30, 2008, before the Health,
Employment, Labor, and Pensions subcommittee of the U.S. House
of Representatives, unions representing Northwest's flight
attendants, ramp workers and reservation agents pointed out that
Delta's buyout plan for Northwest threatens pension benefits for
employees, the AP reports.

Northwest employees have not received assurances that their
pension benefits would be protected upon the closing of the
planned merger, said Robert Roach, general vice president of the
International Association of Machinists on behalf of Northwest's
labor force, reports the AP.

?The ill-advised Delta-Northwest merger will jeopardize
everything [the Northwest employees] have worked for while
destroying two once-great airlines and threatening the solvency
of our nation's pension insurance agency,? Mr. Roach said,
according to the Atlanta-Journal Constitution.

Mr. Roach argued that the combined airline should not be allowed
to ?dump their garbage? on the Pension Benefit Guaranty Corp.,
the government-created corporation that takes over pension plans
for bankrupt companies, says AJC.

Forcing the frozen pension plans unto PBGC will mean an added
US$15,600,000,000 in liabilities on top of its US$13,100,000,000
deficit for fiscal year 2007, AJC reports, quoting Mr. Roach.

In response, Rob Kight, Delta's vice president for Compensation,
Benefits and Services, told the Subcommittee that Delta intends
to maintain its pension plans and Northwest's that were frozen
in the Chapter 11 cases.

The Delta-Northwest combination is about ?addition, not
subtraction?, hence it will mean ?a stronger company? that will
be better able to fund pensions going forward, Mr. Kight said,
according to AJC.

Subsequent to testifying before lawmakers, IAM released a press
statement dated July 30, reiterating that the Delta-NWA merger
could possibly jeopardize workers' pensions and the stability of
the government's pension insurance system, a complete copy of
which is available for free at http://www.goiam.org/mergers

                   Delta FAs are Not Unionized,
                        AFA-CWA Worries

On behalf of Northwest's flight attendants, the Association of
Flight Attendants-CWA international president Patricia Friend,
noted that Delta flight attendants are not currently represented
by a union, according to the AP.

Ms. Friend also accused Delta management of interfering with an
attempt by some of its flight attendants to unionize.

As previously reported, eligible Delta flight attendants voted
to become unionized from April 23 through June 3, 2008; however,
more than 60% of them rejected AFA's representation, according
to results from the National Mediation Board.

The AFA-CWA filed on June 6, 2008, formal interference charges
with the NMB against Delta management, alleging illegal conduct
during the recent flight attendant representation election.

?This merger should not be permitted to be a vehicle for union
busting,? Ms. Friend told lawmakers during the hearing, says the
AP.

According to Ms. Friend, Delta ?will do everything in their
power to first make sure there is no union in place to protect
the hard-earned benefits of the currently unionized Northwest
flight attendants?, AJC reports.

Ms. Friend urged the members of the Committee to remember that
?the hundreds of thousands of airline employees across the
country have the most to lose and with the least protection?.

                Delta President: Delta-NWA Merger
                 to Produce US$2-Bil. in Savings

In an interview with The Street.com, Delta President Ed Bastian
said that he believes that Delta's planned merger with Northwest
will produce US$2,000,000,000 in savings and benefits, up from
an original estimate of US$1,200,000,000 and will cost about
US$600,000,000, down from the US$1,000,000,000, which the
Company previously projected.

?Now that we've had an opportunity to do more detailed work,
we've been able to validate the synergies we thought were there,
but had a difficult time quantifying,? Mr. Bastian said in the
interview.

The updated evaluation means that the combined company could
possibly gain back US$500,000,000 in 2009, and another
US$500,000,000 to US$600,000,000 annually until 2012.

Upon the closing of the merger, Delta will become the operator
of not less than 700 regional jets, which comprises
approximately 40% of U.S.' regional jet fleet, The Street.com
notes.

The airline will also get more than US$100,000,000 in improved
efficiencies in airport operations due to lessened leases in
costly facilities, including, among others, the Los Angeles
International Airport, the report adds.

      Delta CEO Aims for ?Quick Integration? with Northwest

Delta intends to file for a single operating certificate with
the Federal Aviation Administration by the end of August 2008,
in connection with its planned merger with Northwest,
Marketwatch reports.

Mr. Anderson said in a CNBC interview that Delta plans to take
Northwest as a subsidiary during the first 18 months after the
merger is completed.

Delta intends to fold Northwest's operations into Delta ?as
quickly as we can?, Mr. Anderson told CNBC, says the report.

Mr. Anderson also noted that negotiations ?are still at pace?
with respect to discussions on antitrust issues with U.S.
congressional panels, as well as The Department of Justice for
final approval.

                    Delta and Northwest Face
            Antitrust Trial Over Merger in November

As previously reported, a group of 28 airline passengers from 10
states filed a lawsuit in the U.S. District Court for  the
Northern District of California to halt Delta Airlines, Inc.'s
proposed takeover of Northwest Airlines Corporation.

U.S. District Court Judge Vaughn Walker scheduled in San
Francisco, on November 5, 2008, the trial over claims that the
Delta-Northwest merger violates antitrust laws, Bloomberg News
reports.

Northwest and Delta executives are expected to testify at the
trial, USA Today says.

According to Bloomberg News, the lawsuit, captioned Rosemary
D'Augusta v. Northwest Airlines, allege that the proposed Delta-
Northwest merger ?would result in an illegal monopoly?,
controlling, among others, 24% of domestic flights.

The lawsuit also alleges that ?higher ticket prices and
diminished service? will result if federal regulators approve
the deal, says the report.

Delta and Northwest have said the combined Company would have
the the most flights worldwide, providing access to more than
390 destinations in 67 countries.

                      About Northwest Airlines

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

The company and 12 affiliates filed for chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930).  Bruce
R. Zirinsky, Esq., and Gregory M. Petrick, Esq., at Cadwalader,
Wickersham & Taft LLP in New York, and Mark C. Ellenberg, Esq.,
at Cadwalader, Wickersham & Taft LLP in Washington, represent
the Debtors in their restructuring efforts.  The Official
Committee of Unsecured Creditors has retained Scott L. Hazan,
Esq., at Otterbourg, Steindler, Houston & Rosen, P.C. as its
bankruptcy counsel in the Debtors' chapter 11 cases.  When the
Debtors filed for bankruptcy, they listed US$14.4 billion in
total assets and US$17.9 billion in total debts.  On Jan. 12,
2007, the Debtors filed with the Court their chapter 11 plan.
On Feb. 15, 2007, the Debtors filed an amended plan and
disclosure statement.  The Court approved the adequacy of the
Debtors' amended disclosure statement on March 26, 2007.  On
May 21, 2007, the Court confirmed the Debtors' amended plan.
That amended plan took effect May 31, 2007.

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

                           About Delta Air

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

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

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


DELTA AIR: To Hold Special Stockholders' Meeting on September 25
----------------------------------------------------------------
In a joint prospectus filed with the Securities and Exchange
Commission, dated Aug. 6, 2008, Delta Air Lines, Inc., and
Northwest Airlines Corporation notify their stockholders of
separate special meetings, that will simultaneously take place
on Sept. 25, 2008.

Essentially, during their Special Meetings, Delta and Northwest
stockholders will consider and vote on a proposal to adopt the
Agreement and Plan of Merger, dated as of April 14, 2008, by and
among Delta Air Lines, Inc., Nautilus Merger Corporation, a
direct, wholly-owned subsidiary of Delta, and Northwest.

                    Delta's Special Meeting

According to Delta Chief Executive Officer Richard H. Anderson,
Delta's Special Meeting will be held at 2:00 p.m., at the
Georgia International Convention Center Concourse, College Park
in Georgia, where Delta stockholders will vote on:

    * a proposal to approve an amendment to the Delta 2007
      Performance Compensation Plan to increase the number of
      shares of Delta Common Stock issuable by a number of shares
      equal to 15% of Delta's outstanding equity capitalization,
      determined on a fully-diluted basis at the closing of the
      Merger; and

    * an adjournment of the Special Meeting, if necessary or
      appropriate, to solicit additional proxies if there are not
      sufficient votes to approve the Proposals.

The issuance of Delta common stock to Northwest stockholders in
the merger and the amendment to the Delta 2007 Performance
Compensation Plan require the affirmative vote of holders of a
majority of the shares of Delta common stock, according to the
SEC filing.

In connection with the Merger, Delta intends to issue to
substantially all employees of the combined Company, equity
equal to approximately 13.38% of Delta's outstanding equity
capitalization, determined on a fully-diluted basis at the
closing of the Merger.

Delta says its board of directors believes the employees of the
combined Company should receive equity to recognize their
critical role in assisting it to (i) achieve its financial,
operational and customer service goals, (ii) more closely align
their interests with stockholders, and (iii) increase their
stake in the combined Company's financial performance.

The amendment to the Delta 2007 Performance Compensation Plan is
intended to permit Delta to implement the employee equity
issuance and allow for other equity grants after the closing of
the merger, the SEC filing disclosed.

Delta has fixed the close of business on July 29, 2008, as the
record date for determination of the Delta stockholders entitled
to receive notice of, and to vote at, the Delta Special Meeting.

                   Northwest's Special Meeting

Northwest's Special Meeting at 9:30 a.m., Eastern Time, will be
held in the AXA Equitable Center's Auditorium located at 787
Seventh Avenue, New York, according to Northwest CEO Douglas M.
Steenland.

Northwest's stockholders will, among other things:

    * elect 12 directors to hold office until the 2009 Annual
      Meeting of Stockholders;

    * ratify the appointment of Ernst & Young LLP as Northwest's
      independent registered public accounting firm for 2008;

    * to approve an amendment to the Northwest Airlines Corp.
      2007 Stock Incentive Plan; and

    * approve the adjournment of the Northwest Annual Meeting, if
      necessary or appropriate, to solicit additional proxies if
      there are not sufficient votes to approve the Merger and
      its Agreement.

According to Mr. Steenland, the Northwest board of directors has
fixed July 31, 2008, as the record date for determination of the
Northwest stockholders entitled to receive notice of, and to
vote at, the Northwest Annual Meeting.

The joint proxy statement or prospectus and the Northwest 2007
Annual Report are available at http://www.proxyvote.com

A full-text copy of Delta and Northwest's joint prospectus on
Form S-4 is available at no charge at:

               http://ResearchArchives.com/t/s?30b1

          Northwest Files Transcript of Conference Call

In a separate filing on Form 425 with the SEC dated July 24,
2008, Northwest disclosed the transcript of their Conference
Call held on July 23, with participating analysts Ray Neidl of
Calyon Securities, Gary Chase of Lehman Brothers, Jamie Baker of
JPMorgan, William Greene of Morgan Stanley and Daniel McKenzie
of Credit Suisse.

Northwest's Corporate participants included Doug Steenland;
Andrew Roberts, executive vice president for Operations; Dave
Davis, chief financial officer, Tim Griffin, EVP for Marketing
and Distribution; and Andrew Lacko, Director IR.

Among other things, Northwest tackled the planned merger with
Delta, which, according to Mr. Steenland ?makes even more sense
now given the continued run up in fuel prices than it did when
we entered into the merger agreement in April [2008]?.

Mr. Steenland added that ?significant work is already under way?
to realize the synergies of the Merger, including, among others:

    -- Delta and Northwest's joint formation of 26 integration
       planning teams comprised of leaders from both companies
       for smooth integration of operations;

    -- an unprecedented pre-merger collective bargaining
       agreement reached with Delta and Northwest pilot groups
       that includes a process to achieve full seniority list
       integration upon closing of the merger, subject to
       membership ratification and expected to be realized in
       August;

    -- Northwest and Delta's special meetings to be held on
       September 25, 2008, for shareholders to vote for the
       approval of the merger; and

    -- announcement of key executives that will lead the combined
       Company.

Mr. Steenland added that the merger-related synergies have been
estimated to be US$2,000,000,000 on an annualized steady basis.

?We continue to expect the closing in the fourth quarter of
2008,? Mr. Steenland said.

Mr. Davis reported that for the second quarter of 2008,
Northwest incurred a net loss of US$377,000,000.  However,
operating revenues for the second quarter were US$3,600,000,000,
up 12.4% from 2007, he says.

The Participants also tackled, among other things, the impact of
fuel costs to Northwest, the airline's capacity cuts and number
of regional jets.

A full-text copy of the Northwest Conference Call Transcript is
available for free at http://ResearchArchives.com/t/s?30b0

                      About Northwest Airlines

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

The company and 12 affiliates filed for chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930).  Bruce
R. Zirinsky, Esq., and Gregory M. Petrick, Esq., at Cadwalader,
Wickersham & Taft LLP in New York, and Mark C. Ellenberg, Esq.,
at Cadwalader, Wickersham & Taft LLP in Washington, represent
the Debtors in their restructuring efforts.  The Official
Committee of Unsecured Creditors has retained Scott L. Hazan,
Esq., at Otterbourg, Steindler, Houston & Rosen, P.C. as its
bankruptcy counsel in the Debtors' chapter 11 cases.  When the
Debtors filed for bankruptcy, they listed US$14.4 billion in
total assets and US$17.9 billion in total debts.  On Jan. 12,
2007, the Debtors filed with the Court their chapter 11 plan.
On Feb. 15, 2007, the Debtors filed an amended plan and
disclosure statement.  The Court approved the adequacy of the
Debtors' amended disclosure statement on March 26, 2007.  On
May 21, 2007, the Court confirmed the Debtors' amended plan.
That amended plan took effect May 31, 2007.

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

                           About Delta Air

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

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

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


DELTA AIR: Trial for Comair 5191 Crash Lawsuits Canceled
--------------------------------------------------------
A civil trial over the Comair Flight 5191 crash in 2006 that was
scheduled Aug. 4, 2008, in Fayette County, Kentucky, before
U.S. District Judge Karl Forester has been canceled,
Kentucky.com reports.

According to the report, only two lawsuits against Comair
remained in Fayette County, and one in Florida.

Over the past two weeks, 17 families reached settlement
agreements with Comair, pursuant to court-ordered settlement
conferences conducted by retired State Supreme Court Justice
James E. Keller and U.S. Magistrate Judge James B. Todd,
Kentucky.com says.

Comair spokeswoman Kate Marx said Comair has honored its initial
commitment ?to [treat] the passenger families fairly and
respectfully?.

Flight 5191 crashed on Aug. 27, 2006, after it took off from the
wrong runway at Blue Grass Airport.  Forty-nine of the 50
passengers were killed, of which 45 sued Comair.

Subsequently, Comair filed a lawsuit against the Federal
Aviation Administration, alleging the FAA's negligence in having
only one air traffic controller on duty on Aug. 27, 2006.

                           About Delta Air

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

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

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


DELTA AIR: Drops Springfield-Cincinnati Route & Stewart Flights
---------------------------------------------------------------
Effective Aug. 31, 2008, Delta Air Lines, Inc., will end its
three daily flights between Springfield and Cincinnati,
according to Cheapflights.com, quoting officials at Springfield-
Branson National Airport.

According to Springfield-Branson Airport spokesman Kent Boyd,
Delta said that that decision was made after careful review of
the passenger demand and where they are connecting to and from
in regards to the Springfield market place.

Delta may have tentative plans to add another daily flight
between Springfield and Atlanta in the future, Mr. Boyd told
Cheapflights.com.

Similarly, officials at the Stewart International Airport have
announced that Delta planned to cut back to three daily flights
to Atlanta from its current four, and to drop a second flight,
blaming rising fuel costs for the cutbacks, Recordonline.com
reports.

                           About Delta Air

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

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

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


DELTA AIR: Cancels Freedom CRJ-900 Delta Connection Agreement
-------------------------------------------------------------
Mesa Air Group Inc. received notification from Delta Air Lines,
Inc., regarding the airline's plan to terminate Mesa subsidiary
Freedom Airlines' CRJ-900 Delta Connection agreement, Mesa
disclosed in a statement filed with the Securities and Exchange
Commission on Aug. 5.

Freedom operates seven CRJ-900 regional jets for Delta
Connection, with seven more aircraft scheduled to enter service
by May 2009.  Mesa subleases the Aircraft from Delta for US$1
per month per aircraft, which will be returned to Delta in
connection with this termination with no further financial
obligation to Mesa.

The 14 aircraft will be assigned to other Delta Connection
carriers, Delta spokesperson Betsy Talton told The Associated
Press.

According to the SEC filing, Delta alleges Freedom's ?[failure]
to maintain specified operational performance, as outlined in
the Contract?.

?It's more important than ever before that Delta and its Delta
Connection partners meet operational and customer service
levels,? Ms. Talton stated, according to he AP.

However, Mesa believes the cancellation is part of Delta's
efforts to reduce capacity, coupled with its inability to reduce
aircraft at its wholly-owned subsidiary, Comair, without
incurring significant ongoing expense.

As previously reported, Delta also planned to cancel its flying
contract with Freedom with respect to the ERJ-145 Connection
Agreement, under which Mesa won a preliminary injunction in the
Federal Court in Atlanta, enjoining Delta from terminating the
Contract, according to the SEC filing.

Mesa Air Group Chairperson and CEO Jonathan Ornstein said the
regional carrier ?intends to vigorously defend its contractual
rights . . . as it remains willing to cooperate in the mutual
best interests of Delta and Mesa?.

                           About Delta Air

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

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

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


JAGUAR ARGENTINA: Proofs of Claim Verification Is Until Sept. 19
----------------------------------------------------------------
Nelida Grunblatt de Nobile, the court-appointed trustee for
Jaguar Argentina SA's bankruptcy proceeding, will be verifying
creditors' proofs of claim until Sept. 19, 2008.

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

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

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

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

Ms. Grunblatt de Nobile is also in charge of administering
Jaguar Argentina's assets under court supervision and will take
part in their disposal to the extent established by law.

The debtor can be reached at:

      Jaguar Argentina SA
      Avenida Corrientes 2621
      Buenos Aires, Argentina

The trustee can be reached at:

      Nelida Grunblatt de Nobile
      Felipe Vallese 1195
      Buenos Aires, Argentina


TEC CONS: Files for Reorganization in Buenos Aires Court
--------------------------------------------------------
Tec Cons SRL has requested for reorganization approval after
failing to pay its liabilities.

The reorganization petition, once approved by the court, will
allow Tec Cons to negotiate a settlement with its creditors in
order to avoid a straight liquidation.

The case is pending in the National Commercial Court of First
Instance No. 17 in Buenos Aires.  Clerk No. 34 assists the court
in this case.

The debtor can be reached at:

                   Tec Cons SRL
                   Avenida de Mayo 776
                   Buenos Aires, Argentina
                   Web site: http://www.teccons.com.ar


TELECOM ARGENTINA: Expects 15% Revenue Growth From Capex in 2008
----------------------------------------------------------------
Business News Americas reports that finance director of Telecom
Argentina SA, Pedro Insussarry, said in a conference call that
the company is expecting capex will reach 15% of the company's
revenues for 2008.

BNamericas quoted Mr. Insussarry as saying, "Our budget for
investments this year totals approximately 1.6 billion pesos
(US$527 million).  For 2009, we are also expecting a similar
level of capex compared to this year."

Telecom Argentina reported its capex has increased 67% to ARS716
million for the first half of 2008 from ARS429 million of the
same period last year, BNamericas relates.

According to BNamericas, the company is expecting that its
consolidated revenues will grow 20% in 2008 from ARS9.07 billion
of last year.

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

                          *     *     *

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



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

ULTRAPETROL (BAHAMAS): Earns US$11.7 Mil. in 2008 Second Quarter
----------------------------------------------------------------
Ultrapetrol (Bahamas) Limited reported net income of
US$11.7 million on net revenues of US$83.0 million for the
second quarter of 2008, compared to net income of $0.9 million
on net revenues of US$55.4 million for the same quarter of 2007.

Felipe Menendez, Ultrapetrol's President and Chief Executive
Officer, said, ?During the second quarter we experienced strong
results and took further steps to implement our growth
strategies.  In the River Business we have increased the volumes
loaded and we see strong demand for key commodities.  We
expanded our River Business fleet currently in operation by 57
barges and three pushboats during the course of the second
quarter and now have a total of 591 barges with an aggregate
capacity of approximately 1,020,000 dwt., while we continued to
vigorously build and equip our new barge construction yard, the
most modern of its kind in South America, which we expect to
have in full production in 2009.  In our Offshore Supply
Business we continue to position ourselves to capitalize
on the strong fundamentals of this market and currently have
seven vessels under construction, which will more than double
our existing fleet.  In our Ocean Business revenues were up 169%
due to increased charter rates on our OBOs and the addition of
the Capesize vessel Princess Marisol and the product tankers
Amadeo and Austral to our ocean fleet.  Finally, during the
quarter, we made a strategic decision to sell our only passenger
vessel, the Blue Monarch.?

                    Financial Results Overview

The company's second quarter 2008 net income includes a deferred
income tax charge of US$2.2 million from unrealized foreign
currency exchange rate gains on U.S. Dollar-denominated debt of
one of our Brazilian subsidiaries in the Offshore Supply
Business.  The adjusted net income in the second quarter 2008,
excluding this effect is US$13.9 million as compared with
US$5.6 million (after adjusting net income for a similar
US$1.6 million deferred income tax charge in Brazil and a non-
cash charge of US$3.1 million on mark to market FFA) in the
second quarter 2007.

Ultrapetrol's Chief Financial Officer, Mr. Len Hoskinson, said,
?During the quarter, we continued to access the lending markets
to support our growth strategy. Specifically, we signed a 12-
year secured term loan of up to US$93.6 million for pre-delivery
and post-delivery financing of the four PSVs under construction
in India.  This agreement underscores both our support from
leading banks and commitment to growing the business going
forward.  As previously announced, during the quarter we bought
back 274 days in cleared FFAs covering the third and fourth
quarters of 2008, while simultaneously selling 274 days in OTC
FFAs for these same periods.  The economic and accounting effect
of these transactions was almost neutral and significantly
reduced our future working capital requirements while enabling
us to remain in a position to receive stable and visible cash
flows and benefit from the upside potential in our Ocean
Business.?

                             Passenger

On June 30, 2008, the company entered into a Memorandum of
Agreement (MOA), subsequently modified by two addendums signed
on July 24 and Aug. 6, 2008, whereby the company agreed to sell
its passenger vessel, Blue Monarch.  The net proceeds of this
sale to the company are expected to be US$8.3 million.  Under
the terms of the agreement, the buyers must deposit the purchase
price prior to Aug. 25, 2008, in a joint escrow account, while
the delivery of the vessel will take place at the end of the
current cruising season in the Aegean.  However, if the purchase
price is not deposited in accordance with the MOA by Aug. 25,
2008, this transaction may not materialize as agreed.

                     Share Repurchase Program

During the second quarter 2008 the company acquired 32,200 of
its shares at an average cost of US$10.3 per share for a total
cost of US$0.3 million.  This program has been approved by the
company's Board of Directors up to September 30, 2008.  It does
not require the company to purchase a specific number of shares
and it may be suspended or reinstated at any time at the
company's discretion and without notice.  The shares purchased
under this program are held as treasury stock and are recorded
by the company as authorized but unissued shares in its books.

                         About Ultrapetrol

Headquartered in Nassau, Bahamas, Ultrapetrol (Bahamas) Limited
(Nasdaq: ULTR) -- http://www.ultrapetrol.net/-- is a diverse
international marine transportation company.  The company
operates in four segments: River, Ocean, Offshore Platform
Supply and Passenger and had 2007 revenues of US$221.7 million.
It serves the shipping markets for grain, forest products,
minerals, crude oil, petroleum and refined petroleum products,
as well as the offshore oil platform supply market and the
leisure passenger cruise market, with its extensive and diverse
fleet of vessels.  These include river barges and pushboats,
platform supply vessels, tankers, oil-bulk-ore vessels and
passenger ships.

                            *    *    *

As reported in the Troubled Company Reporter-Latin America on
April 15, 2008, Moody's Investors Service affirmed the B2
corporate family rating and the B2 rating on the US$180 million
9% guaranteed first mortgage notes due 2014 of Ultrapetrol
(Bahamas) Limited.  Moody's said the outlook remains stable.



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CONTINENTAL AIRLINES: S&P Affirms 'B' Rating; Off CreditWatch
-------------------------------------------------------------
Standard & Poor's Ratings Services has taken various actions on
its ratings on Continental Airlines Inc. (B/Negative/B-3).  S&P
affirmed its 'B' long-term corporate credit rating, 'B-3' short-
term corporate credit rating, all ratings on unsecured debt and
on selected enhanced equipment trust certificates.  S&P lowered
S&P's ratings on other enhanced equipment trust certificates,
particularly those secured by regional jets, and raised other
ratings.  All ratings were removed from CreditWatch, where they
were placed with negative implications May 22, 2008, as part of
an industrywide review.  The rating outlook is negative.

?We expect that Continental Airlines will post a significant
loss this year, due to high fuel prices, but its operating
performance should continue to be better than those of most peer
large U.S. airlines,? said Standard & Poor's credit analyst
Philip Baggaley.  ?That, plus expected adequate liquidity,
support an affirmation of its corporate credit rating.  Our
downgrades on selected enhanced equipment trust certificates are
based on reduced collateral values for certain models of
aircraft, especially 50-seat regional jets, which are less
economic to operate at current high fuel prices.?

Continental continues to report better operating results than
its peer ?legacy carriers?, including a relatively modest
US$171 million first-half 2008 pretax loss.  Still, Continental
is under pressure from high (albeit recently somewhat reduced)
fuel prices and, like other U.S. airlines, is grounding older,
less fuel-efficient aircraft (including 67 B737-300s and B737-
500s, as well as various regional jets).  This, along with
similar actions at other airlines, should allow Continental to
generate higher passenger revenues per available seat miles by
the fourth quarter and into 2009 (its consolidated passenger
revenues per available seat mile increased 5.7% during the first
half of 2008). S&P expects Continental to generate a reduced
loss in 2009, with the magnitude dependent on the level of fuel
prices and strength of passenger demand in a weak U.S. economy.

The 'B' long-term corporate credit rating on Houston-based
Continental reflects its participation in the high-risk airline
industry and a heavy debt and lease burden, but also better-
than-average operating performance among its peer large U.S.
hub-and-spoke airlines.  Continental, the fourth-largest U.S.
airline, serves markets mainly in the southern and eastern U.S.
from hubs at Houston; Newark, N.J.; and Cleveland, Ohio.
International routes serve the central Pacific, selected Asian
destinations, Latin America, and Europe.

Although Continental currently has adequate liquidity and will
likely report narrower losses than similar U.S. airlines, worse-
than-expected fuel prices and/or economic weakness could erode
the company's financial profile.  S&P may lower the rating if
unrestricted cash and short-term investments fall below
US$2 billion.  If Continental is able to weather the downturn
and industry conditions improve, S&P could revise the outlook to
stable.

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.



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ADVANCED MICRO: Moody's Lowers Corporate Family Ratings to B2
-------------------------------------------------------------
Moody's Investors Service has downgraded Advanced Micro Devices'
corporate family ratings to B2 from B1.  At the same time, the
rating on the US$390 million senior note due 2012 was revised to
B3 (LGD4, 59%) from B2.  The outlook is negative.

The downgrade was prompted by AMD's ongoing operating losses
driven primarily by business execution, diminished liquidity and
high financial leverage.  Moody's believes that AMD will remain
challenged to internally fund the advancement of its process
capability and production capacity, which is essential to keep
pace with competitor manufacturing cost reduction and process
node advances.

The rating action, rationale, and outlook do not include the
potential that the company may announce or finalize its ?asset
smart? strategy, to which it has referred since late 2007.  To
the extent that AMD announces developments in this regard,
Moody's will consider the business, financial, and rating
implications as sufficient information becomes available.

Moody's decision to lower AMD's ratings also incorporated the
ongoing high level of business risk inherent to the volatile and
capital intensive microprocessor segment of the semiconductor
industry and the intense competition from the company's much
larger rival, Intel Corporation, who, with a strong product line
and significant financial, technical, and manufacturing
resources will continue to compete very aggressively in order to
maintain market share that it regained from AMD in 2007.

Richard Lane, AMD's Senior Vice President, said, ?While overall
PC market demand remains good, unit growth continues to be
driven by a lower end mix of PC's and servers, where processors
tend to carry lower profit margins.  To the extent that the
developing macro demand environment becomes more cautious, AMD's
profitability and cash flow would likely suffer unless there
were a significant reversal of product mix and operational
efficiencies.?  Given AMD's high financial leverage and more
limited financial flexibility, it would then be constrained to
invest in necessary product development and manufacturing
capability in order to remain competitive.

AMD's negative rating outlook reflects the company's challenges
to move its operating performance towards a level of self
funding profitability and then to sustain that momentum.  To the
extent that AMD does not show demonstrable signs of improving
its financial results in the second half of 2008, the rating
could come under downward pressure.

Ratings downgraded include:

    -- Corporate family rating to B2 from B1;

    -- Probability-of-default rating to B2 from B1;

    -- US$390 million senior unsecured notes due August 2012
       to B3 (LGD4, 59%) from B2.

Headquartered in Sunnyvale, California, Advanced Micro Devices
Inc. (NYSE: AMD) -- http://www.amd.com/-- provides innovative
processing solutions in the computing, graphics and consumer
electronics markets.  Outside the United States, the company
has subsidiaries in Belgium, Brazil, China, Germany, Japan,
Malaysia and Bermuda.


GAP INC: Net Sales Down 5% to US$998MM for Period Ended Aug. 2
--------------------------------------------------------------
Gap Inc. reported net sales of US$998 million for the four-week
period ended Aug. 2, 2008, which is a decrease of 5 percent as
compared with net sales of US$1.05 billion for the same period
ended Aug. 4, 2007.  The company's comparable store sales for
July 2008 decreased 11 percent compared with a 7 percent
decrease for July 2007.

Comparable store sales by division for July 2008 were:

     * Gap North America: negative 6 percent versus positive 2
       percent last year

     * Banana Republic North America: negative 8 percent versus
       positive 1 percent last year

     * Old Navy North America: negative 16 percent versus
       negative 18 percent last year

     * International: negative 9 percent versus positive 11
       percent last year

?In July, we focused on clearing through remaining summer
product and preparing our stores for fall deliveries,? said
Sabrina Simmons, chief financial officer of Gap Inc.  ?We're
pleased that we delivered merchandise margins significantly
above last year.?

                 Second Quarter Sales Results

For the thirteen weeks ended Aug. 2, 2008, total company net
sales were US$3.50 billion, which is a decrease of 5 percent as
compared with net sales of US$3.69 billion for the thirteen
weeks ended Aug. 4, 2007.  The company's second quarter
comparable store sales decreased 10 percent compared with a
decrease of 5 percent in the second quarter of the prior year.

Comparable store sales by division for the second quarter of
fiscal year 2008 were:

     * Gap North America: negative 6 percent versus negative 6
       percent last year

     * Banana Republic North America: negative 6 percent versus
       positive 4 percent last year

     * Old Navy North America: negative 16 percent versus
       negative 9 percent last year

     * International: negative 6 percent versus positive 3
       percent last year

         Second Quarter and Fiscal Year Earnings Guidance

The company expects diluted earnings per share on a GAAP basis
for the second quarter to be US$0.30 to US$0.31.

The company is increasing its guidance for earnings per share on
a GAAP basis for fiscal year 2008 to US$1.30 to US$1.35 from its
previous guidance of US$1.20 to US$1.27.

                           About Gap

Headquartered in San Francisco, California, Gap Inc. (NYSE: GPS)
-- http://www.gapinc.com/-- is an international specialty
retailer offering clothing, accessories and personal care
products for men, women, children and babies under the Gap,
Banana Republic, Old Navy, Forth & Towne and Piperlime brand
names.  Gap Inc. has subsidiaries in the United Kingdom, Canada,
France, Ireland, Japan, Hong Kong, Bermuda and Mexico, among
others.  In addition, Gap Inc. is expanding its international
presence with franchise agreements for Gap and Banana Republic
in Southeast Asia and the Middle East.

                           *     *     *

In April 2008, Fitch affirmed its BB+ rating on The Gap, Inc.'s
issuer default rating and senior unsecured notes.  Fitch however
revised the rating outlook to stable from negative.


SYNCORA HOLDINGS: Fitch Revises Watch to Positive From Evolving
---------------------------------------------------------------
Fitch Ratings has revised the rating watch of Syncora Holdings
Ltd. (Syncora, formerly Security Capital Assurance Ltd.) and its
financial guaranty subsidiaries to positive from evolving.

Syncora Guarantee Inc. (SGI, formerly XL Capital Assurance Inc.)
Syncora Guarantee (U.K.) Ltd. (SG-UK, formerly XL Capital
Assurance (U.K.) Ltd.)

Syncora Guarantee Re Ltd. (SGRe, formerly XL Financial Assurance
Ltd.)
   -- Insurer financial strength 'CCC'.

Syncora Holding Ltd.
   -- Long Term Issuer 'CCC-';
   -- US$250 million fixed/floating series A perpetual non-
      cumulative preference shares 'CCC-'.

Twin Reefs Pass-Through Trust
   -- US$200 million pass-through trust securities 'CCC-'.

Syncora announced on Aug. 5 that it had finalized a transaction
with Merrill Lynch & Co. and Merrill Lynch International under
which the parties terminated eight structured finance
collateralized debt obligations transactions executed as credit
default swaps totaling US$3.74 billion in exchange for a payment
from SGI of US$500 million to MLI.  The elimination of the ML SF
CDO transactions, as well as potential commutations with
financial counterparties on other SF CDOs, is significantly
capital accretive from the standpoint of Syncora and a positive
for the credit profile.  SGI and SGRe should be able to release
a significant level of reserves, allowing its statutory capital
to return to a positive value and materially reduces simulated
modeled losses under Fitch's proprietary financial guaranty
capital model.

Additionally, XL Capital Ltd (XL, 46% owner of Syncora prior to
the ML commutation) has reached agreement to make a final
payment of about US$1.9 billion in exchange for termination of
any remaining exposure XL had to Syncora from its facultative
reinsurance contract, excess of loss reinsurance contract and
unlimited guaranty in support of any losses payable on Syncora's
pre-August 2006 financial guaranty portfolio.  The XL agreement
is also capital accretive and a positive for the credit profile
of Syncora.

The Rating Watch Positive reflects:

   -- the positive implications of enhancements to Syncora's
      financial and capital position given the execution of the
      settlement agreements; and

   -- the possibility that Syncora's ratings could be
      significantly upgraded upon full assessment of the
      remaining insured portfolio.

However, Fitch has not received updated financial and insured
portfolio information to fully assess recent portfolio
performance, including the decline in the credit quality of
Syncora's RMBS exposures.  Therefore, the 'CCC' IFS ratings on
the financial guaranty subsidiaries reflect this uncertainty and
remaining weakness in the company's exposure to its remaining SF
CDOs and direct RMBS.  Until this updated information is
received Fitch is unable to determine the ultimate rating
following the positive developments from these settlements.

Fitch notes that the pending ratings assessment of Syncora would
incorporate not only the improvement in Syncora's capital
position, but also Fitch's view of various qualitative factors.
These would include Syncora's franchise value and business
outlook, which appear to be highly uncertain due to the negative
implications from the company's exposure to mortgage-related
credits.

In its previous release on Syncora, Fitch suggested the
possibility of considering the settlements with financial
counterparties, such as ML, as 'distressed' under the agency's
rating criteria.  In evaluating the settlement terms of the
commutations with ML, Fitch would note the terms of these
agreements were executed at pricing levels that are well below
the aggregate economic loss Fitch expects Syncora would have
incurred on these policies.  A determination of a Distressed
Debt Exchange ultimately incorporates some level of judgment.
One factor suggesting this would not constitute a DDE in this
instance was the substantial contractual guarantees and
reinsurance support provided to Syncora by XL.  Ultimately,
Syncora received over US$1.9 billion from XL to terminate these
coverages.

Syncora Holdings Ltd., formerly Security Capital Assurance Ltd.,
is a Bermuda-domiciled holding company whose primary operating
subsidiaries, XL Capital Assurance Inc. and XL Financial
Assurance Ltd, provide credit enhancement and protection
products to the public finance and structured finance markets
throughout the United States and internationally.  SCA has
announced that it will formally change its corporate name to
Syncora Holdings Ltd. on Aug. 4, 2008.  XLCA and XLFA will be
renamed Syncora Guarantee Inc. and Syncora Guarantee Re Ltd,
respectively.  For March 31, 2008, Syncora reported consolidated
GAAP assets of US$3.8 billion and shareholders equity of
approximately US$348 million.  On an aggregated basis net par
outstanding totaled US$155 billion as of March 31, 2008.


VALIDUS HOLDINGS: S&P Assigns 'BB+' Rating on Subordinated Debt
---------------------------------------------------------------
Standard & Poor's Ratings Services has assigned its 'BBB-'
counterparty credit rating on Bermuda-based Validus Holdings
Ltd. (Validus; NYSE:VR). The outlook is stable.

In addition, Standard & Poor's assigned its preliminary 'BBB-'
senior debt, 'BB+' subordinated debt, and 'BB' preferred stock
ratings to Validus' recently filed universal shelf registration.
The company has no intention of drawing down on the shelf at
this point.

?The assigned rating is based on Validus' good competitive
position, having leveraged its first mover advantage after
Katrina, Rita, Wilma by providing capacity to the market as well
as increasing its footprint, diversification and scope following
the acquisition of Talbot, strong capitalization, strong risk
controls around exposure management, and very strong operating
performance since inception,? said Standard & Poor's credit
analyst Dennis Sugrue.  ?Partially offsetting these strengths
are the company's adequate strategic risk management practices,
the possibility of significant earnings volatility due to its
short-tail focus and catastrophe exposure (though this is
mitigated by the mix of business provided by the Talbot
acquisition), and some remaining integration and execution risks
associated with the acquisition of Talbot Holdings Ltd.?

Standard & Poor's expects Validus' competitive position to
remain good throughout 2008. The additional scope and
diversification provided by Talbot has given Validus a footprint
that should enable it to compete on a global scale. The group's
growth plans for 2008 are reasonable, given Validus Re is
practicing responsible cycle management by cutting back on
written premiums, while Talbot is expanding in niche lines that
should help the group to manage the soft cycle. S&P expects
continued prudent cycle management in 2009, and do not expect
Talbot to make any material plays into new lines of business.

Standard & Poor's expects Validus to continue to exhibit strong
operating performance in years with normal catastrophe activity.
Results will be volatile due to the property-catastrophe focus
of the company, but this volatility is partially mitigated by
the diversification provided through the acquisition of Talbot.
The company's combined ratio is expected to be between 80%-85%
and return on revenue should be more than 20% for 2008, taking
into account increased expenses associated with the Talbot
business and public company expenses, as well as an upward
expectation in combined ratio as a result of an increase in
direct business.

Capital adequacy is expected to remain strong over the next two-
three years.  S&P does not expect the company to incur material
credit risk through retrocession, and reserving practices should
remain conservative.

At this point, potential for positive movement in the rating is
limited over the next 18-24 months, however, S&P will maintain
regular surveillance on the group and make any adjustments as it
sees fit.  If the company experiences a catastrophe loss outside
its stated tolerances, bringing its exposure management and
modeling practices into question, or if S&P sees a lack of
progress in the development of the strategic risk management
processes, namely a broader implementation of the economic
capital model, it could result in a downgrade or negative
outlook.  Also, given that the strength of Talbot's underwriting
team provides weight to the significance of the acquisition's
effect on competitive position, any large departures of
syndicate underwriters could put negative pressure on the
rating.

Based in Hamilton, Bermuda, Validus Holdings Ltd. (NYSE: VR)
offers both primary and reinsurance coverage for property,
marine and specialty lines of business on a worldwide basis
through its Bermuda and Lloyd's operating platforms.



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* BOLIVIA: Reaches Deal to Buy Shell Units for Nationalization
--------------------------------------------------------------
Bolivia has entered into a deal buying the local operations of
Royal Dutch Shell PLC as part of President Evo Morales'
nationalization plan, the Associated Press reports.

AP relates that Jose Maria Linardi, Shell's local
representative, said a final deal will be signed in two weeks.
Financial terms of the deal were not disclosed.

According to AP, Bolivia's energy industry have been
nationalized by President Morales in 2006, and negotiations have
been going on ever since with various private companies.

                            *    *    *

As reported in the Troubled Company Reporter-Latin America on
July 17, 2008, Fitch Ratings affirmed Bolivia's local and
foreign currency Issuer Default Ratings at 'B-'.  The rating
outlook is stable.  Fitch has also affirmed the short-term IDR
at 'B' and the country ceiling at 'B-'.



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AES CORP: Sees Trouble Ahead in Banco Nacional's Brasiliana Sale
----------------------------------------------------------------
AES Corp. predicts that crises in global financial markets will
affect Banco Nacional de Desenvolvimento Economico e Social SA's
(BNDES) sale of its 49.99% stake in Brasiliana, Business News
Americas reports.

According to BNamericas, AES president and Chief Executive
Officer Paul Hanrahan said in a webcast that the company is
ready to go forward with the opportunity when the time is right.

"We believe we can exercise our first refusal right. We'd like
to have the other half of that asset and would be willing to buy
it, either alone or in conjunction with a partner," BNamericas
quotes Mr. Hanrahan as saying.

BNamericas relates that Companhia Energetica de Minas Gerais SA
and CPFL Energia reportedly showed interests in buying the
stake, including Brasiliana's assets, AES Eletropaulo and AES
Tiete.

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

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

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

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
May 16, 2008, Moody's Investors Service assigned a B1 rating to
The AES Corporation's proposed issuance of US$600 million senior
unsecured notes due 2020.  In addition, Moody's has affirmed the
ratings of AES, including the company's Corporate Family Rating
at B1, its Probability of Default Rating at B1, its senior
secured credit facilities at Ba1, its second priority senior
secured notes at Ba3, its senior unsecured notes at B1 and its
trust preferred securities at B3.  Moody's said the rating
outlook for AES is stable.

The company also carries Fitch Ratings' 'BB/RR1' rating
on US$500 million issue of senior unsecured notes due 2017.

As reported in the Troubled Company Reporter-Latin America on
March 7, 2008, AES Corporation was in default under its senior
secured credit facility and its senior unsecured credit facility
due to a breach of representation related to its financial
statements as stated in the credit agreements.  As a result,
US$200 million of the debt under the company's senior secured
credit facility will be classified as current on the balance
sheet as of Dec. 31, 2007.  There are no outstanding borrowings
under the senior unsecured facility.


AMERICA LATINA: Net Income Grows to BRL105.9 Mln in 2nd Quarter
---------------------------------------------------------------
America Latina Logistica S.A. released its results for the
second quarter of 2008.

   -- Consolidated EBITDAR increased 21.9% in first half 2008,
      from BRL508 million in first half 2007 to BRL619.2 million
      and EBITDA increased 30.9% in the period, to
      BRL537.3 million.  In second quarter 2008, consolidated
      EBITDAR increased 21.2%, from BRL312.7 million in second
      quarter 2007 to BRL379.1 million, and EBITDAR margin
      decreased 0.8% from 54.6% in second quarter 2007 to 53.8%
      in second quarter 2008.

   -- Consolidated volume increased 14.7% in first half 2008 to
      17,814 million RTK.  In second quarter 2008, consolidated
      volume increased 15.2% from 8,599 million RTK in second
      quarter 2007 to 9,903 million RTK, pushed by a 18.6% growth
      in ALL Brasil partially offset by a 9.7% reduction in ALL
      Argentina.

   -- Average yield increased 6.1% and consolidated revenues
      increased 21.6% in first half 2008 to BRL1,385 million.  In
      second quarter 2008, revenues increased 23.8%, from
      BRL650.6 million in second quarter 2007 to BRL805.2 million
      and the average yield rose 7.4%, from BRL72/000'RTK to
      BRL77.3 /000'RTK.

   -- ALL Argentina was again impacted by farmers' traffic
      interruptions in the quarter.  As a result, transported
      volumes in our network were very weak during the strike
      leading to a 9.7% and 9% volume decreases in second quarter
      and first half 2008, respectively.

   -- Net income increased 259% from BRL35.7 million in first
      half 2007 to BRL127.9 million in first half 2008.  These
      results reflect a BRL111.3 million EBITDA increase,
      partially offset by higher income taxes.  In second quarter
      2008, net income increased from BRL55.3 million in second
      quarter 2007 to BRL105.9 million.

Headquartered in Curitiba, Brazil, America Latina Logistica SA
aka ALL -- http://www.all-logistica.com/-- is holding company
engaged in transport services, like as logistics, intermodal
transport, port operations, movement and storage of merchandise,
administration of storage facilities and general storage.  The
company is further active in the acquisition and lease of
locomotives, wagons and other railroad equipment to third
parties.  ALL operates in the railroad sector in South Brazil
through ALL Brazil and in Argentina through ALL Argentina, with
further interests in ALL -- America Latina Logistica-Central SA,
ALL-America Latina Logistica-Mesopotamica SA and Boswells SA.
In addition, the company offers road transport services in
Brazil through America Latina Logistica Intermodal SA.

                        *      *      *

As reported in the Troubled Company Reporter-Latin America on
Sept. 10, 2007, Fitch affirms America Latina Logistica SA's
local and foreign currency Issuer Default Ratings of B+ with a
stable outlook.


BANCO CRUZEIRO: Reports BRL39.6MM Net Profit in Second Quarter
--------------------------------------------------------------
Banco Cruzeiro do Sul SA's net profit increased 334% to
BRL39.6 million in the second quarter 2008, from BRL9.12 million
in the second quarter 2007.

Business News Americas relates that Banco Cruzeiro's second
quarter 2008 net profit is 64.2% lesser than its BRL111 million
net profit in the first quarter 2008.

The bank's recurring net income rose 161% to BRL70.7 million in
the second quarter 2008, compared to BRL27.1 million in the
second quarter 2007, BNamericas notes.  The recurring net income
in 2007 excludes the effects from the bank's initial public
offering expenses in the second quarter 2007 of BRL27.1 million.

According to BNamericas, Banco Cruzeiro said that its
performance in the second quarter this year had been affected by
BRL31.1 million of non-recurring revenues and expenses, ?mainly
from the marking to market of government bonds and Bovespa
shares?.

BNamericas states that Banco Cruzeiro's return on average equity
rose to 14.0% in the second quarter 2008, from 6.8% in the
second quarter 2007, but down from 41.6% in the first quarter
2008.  Banco Cruzeiro had predicted in March 2008 that return on
equity would be 25.5% for the full year.

The report says that Banco Cruzeiro's efficiency ratio improved
to 34.8% in the second quarter 2008, compared to 55.0% in last
year's second quarter.  Banco Cruzeiro's Basel ratio declined to
22.5% from 36.5%.  BNamericas relates that Banco Cruzeiro's
Investors Relations Officer, Fausto Vaz Guimaraes Neto said
during a conference call, ?The [Basel] ratio gives us enough
confidence to keep growing our on-balance credit portfolio even
taking into consideration the current changes in the Brazilian
GAAP, which will adopt the IFRS [International Financial
Reporting Standards].  Having [taken into account] all the
changes IFRS will bring, our Basel ratio will be 18%.?

BNamericas notes that Banco Cruzeiro's total credit portfolio,
which includes its loan book both on and off the balance sheet,
totaled BRL5.22 billion in the second quarter 2008, about 52.2%
higher compared to BRL3.43 billion in the second quarter 2007.

According to the report, Banco Cruzeiro's loans on the balance
sheet rose 87% to BRL3.80 billion in the second quarter 2008,
from the second quarter 2007.  Its paycheck-deductible loans
increased 88.3% to BRL3.18 billion.  The bank's paycheck-
deductible credit card grew 100% to BRL206 million in credit.
Its small and medium-sized enterprise portfolio rose 72.6% to
BRL413 million.

Banco Cruzeiro's assets increased 62.7% to BRL4.99 billion as of
June 2008, compared to BRL3.07 billion in June 2007, BNamericas
states.

Headquartered in Sao Paulo, Brazil, Banco Cruzeiro do Sul SA
(Bovespa - CZRS4) -- http://www.bcsul.com.br/-- is a private-
sector multiple bank with operations in the consumer segment,
through paycheck-deductible loans to public employees and social
security beneficiaries, and in the corporate segment, offering
middle-market companies short-term loans usually backed by
receivables.  The bank's core business is lending to civil
servants, with payments automatically deducted from payrolls.

                            *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 17, 2008, Moody's Investors Service affirmed Banco Cruzeiro
do Sul's ratings and changed to negative, from stable, the
outlook on the D+ bank financial strength rating, Ba1/NP global
local currency deposit ratings, Aa2.br/BR-1 Brazil's national
scale deposit ratings, as well as on the Ba1 senior and Ba2
subordinated debt ratings.  Moody's also affirmed the long and
short-term foreign currency deposit ratings Ba2/NP, and
maintained the stable outlook.


BANCO NACIONAL: Okays BRL132.3 Mil. Financing for Vista Alegre
--------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social SA has
approved a BRL132.3 million loan for the Vista Alegre Acucar e
Alcool Ltda. to build a sugar and alcohol plant, with total
milling capacity of 2 million tons of sugarcane per crop and 30
megawatts (MW) of co-generation of power, in Maracaju.
Investments will create 1.5 thousand direct jobs and 1 thousand
indirect jobs.

As the plant will develop infrastructure and increase the supply
of basic services around it, the project will contribute to the
growth of local economy.  Additionally, the company will use
local manpower, which will require training and specific skills.

For the 2009/2011 crop, the plant will produce 90 thousand cubic
meters of fuel alcohol and 129 thousand tons of sugar.  It is
also equipped with enough power to produce electricity for the
plant's consumption, which will be 14 MW in the first phase of
the project.

The Bank's support accounts for 61% of the project's total
amount, of BRL216.5 million, and will be granted through a
consortium of banks controlled by Banco do Brasil.

The project is strategically located so it can deliver good
results for the project, due to the huge availability of good-
quality and fertile lands, good climatic conditions, and
topography.  The plant will be 9 kilometers away from the urban
perimeter of Vista Alegre and 320 kilometers from the waterway
of Bacia do Prata, in Porto Murtinho.

The industrial technology used to build the plant is commonly
used in the market by the most modern plants, using brand new
equipment.

The project will consider environmental control practices,
namely, control and supervision of agricultural practices,
emissions of gas and use state-of-the-art filters.  The company
has also developed a program to cut down on burns, by fostering
mechanical cuts and harvests.

                        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: To Build Thermal Treatment Plant in Porto Alegre
------------------------------------------------------------
Noticias Financieras reports that Braskem S.A. will construct a
plant in Porto Alegre, Rio Grande do Sul, for thermal treatment
of solid residues to generate energy.

According to Noticias Financieras, the planned plant is based on
a pilot project in Rio de Janeiro.  The BRL100 million Porto
Alegre plant would produce some 13.2 megawatts of electric
energy to supply 55,000 households with monthly consumption of
140 kilowatt-hours.  The plant's estimated daily capacity is 600
tons of waste.

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.


CIA. DE SANEAMENTO: Sao Paulo Agency Okays Tariff Readjustment
--------------------------------------------------------------
Companhia de Saneamento Basico do Estado de Sao Paulo, a.k.a.
Sabesp, disclosed on Aug. 8, 2008, that the Sao Paulo State
Sanitation and Energy Regulatory Agency has approved the tariff
readjustment index of 5.10% to be applied on a straight-line
basis over water and sewage tariffs as of Sept. 11, 2008.

The readjustment is not applicable to the municipalities of Sao
Bernardo do Campo and Lins; tariffs and other conditions
published in proper Notices will prevail thereon.

Companhia de Saneamento Basico do Estado de Sao Paulo, a.k.a.
Sabesp (Bovespa: SBSP3; NYSE: SBS) -- http://www.sabesp.com.br
-- is one of the largest water and sewage service providers in
the world based on the population served in 2005.  It operates
water and sewage systems in Sao Paulo, Brazil.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Sept. 12, 2007, Fitch Ratings affirmed the 'BB' Local Currency
and Foreign Currency Issuer Default Ratings and the Long-Term
National Scale Rating 'A+(bra)' of Companhia de Saneamento
Basico do Estado de Sao Paulo.  In addition, Fitch affirmed the
'BB' Long-Term International Rating for US$140 million in notes
issued by the company, as well as the 'A+(bra)' on National
Scale for its sixth debenture issuance.  Fitch said the rating
outlook is stable.


COMPANHIA ENERGETICA: Reports BRL186.6MM 2nd Quarter Net Income
---------------------------------------------------------------
Noticias Financieras reports that Companhia Energetica de Sao
Paulo's net income increased 38.6% to BRL186.6 million in the
second quarter 2008, compared to the same period in 2007.

According to Noticias Financieras, Companhia Energetica's net
revenues rose 13% to BRL359.6 million in this year's second
quarter, from BRL318.3 million in last year's second quarter.
Its gross revenues grew 9.8% to BRL413 million and its EBITDA
was 83.2%, totaling BRL299.3 million.

Headquartered in Sao Paulo, Brazil, Companhia Energetica de Sao
Paulo (BOVESPA: CESP3, CESP5 and CESP6) is the country's third
largest power generator, majority owned by the State of Sao
Paulo.  CESP operates 6 hydroelectric plants with total
installed capacity of 7,456 MW and reported net revenues of
BRL1,983 million in the last twelve months through Sept. 30,
2006.

                            *     *     *

In March 2008, Moody's Investors Service assigned a 'Ba3' long-
term corporate family rating on Companhia Energetica de Sao
Paulo.

In October 2007, Standard and Poor's Ratings Services assigned a
'B' long-term foreign issuer credit rating on Companhia
Energetica de Sao Paulo.


GLOBO COMUNICACAO: S&P Ups Corp. Credit Ratings to BBB- From BB+
----------------------------------------------------------------
On Aug. 12, 2008, Standard & Poor's Ratings Services raised its
global scale foreign and local currency corporate credit rating
on Globo Comunicacao e Participacoes S.A. to 'BBB-' from 'BB+'.
The outlook on the rating is stable.

?The rating upgrade reflects our increased confidence in the
resilience of Globo's financial performance despite Brazil's
very competitive broadcast TV industry?an environment that has
been putting pressure on the company's operating margins.  While
Globo's business profile, with its dependence on advertising
revenues and exposure to cost inflation, will be a constraint on
the rating going forward, S&P believes that the company's
financial strength will remain fairly stable in the medium term,
supporting the current rating level.  S&P also expects its cash
flow protection ratios to remain quite strong for the rating
even with moderate growth in advertising spending,? said S&P's
credit analyst Milena Zaniboni.

The rating on Globo is supported by Globo's clearly dominant
position in Brazil's broadcast TV market, a position it has
achieved through its high-quality and well-structured
programming with considerable levels of self-produced content,
its leading position in the production of local-language pay-TV
content, and its strong financial metrics.  These positives help
mitigate the risks derived from the concentration of Globo's
revenues and cash generation on TV broadcasting, its high
dependence on the cyclical Brazilian advertising market, the
company's relatively fixed cost structure, and the important
mismatch in the indexation of cash flows (local currency) and
debt (US$-denominated).

The significant improvement in Globo's financial profile has
been the main driver for the steady upgrading of its credit
ratings.  Favorable conditions in the domestic economy and ad
spending (average annual growth has been 7% in the past three
years, reaching US$10.7 billion in 2007) have had a beneficial
impact on Globo's positive operational performance.
Importantly, Globo has taken advantage of this positive cycle
and consistently used its discretionary cash flow to pay down
debt, resulting in strong credit metrics as reflected by a funds
from operations-to-total debt ratio of 94% in the trailing 12
months (TTM) ended March 2008, compared to 73% in the same
period in 2007, and a total debt?to-EBITDA ratio below 1.0 (0.8
in the TTM through March 2008, down from 1.1 in the same period
in 2007).  The maintenance of strong credit metrics and
liquidity is a key rating factor mitigating the risks brought
about by Globo's limited business profile.

Globo's liquidity is strong -- an important rating factor.  The
company reported a net cash position of almost US$350 million in
March 2008 , with US$994 million in liquid assets, exceeding its
total debt position of US$647 million.  In S&P's base case
scenario, Globo will continue to generate discretionary cash
flows of at least US$200 million in the next few years which,
given the small debt amortization requirements, will support the
maintenance of significant liquidity.  The company will not face
debt amortization requirements until 2022, mitigating the
potential negative impact of the currency mismatch in the debt
position and internal cash generation (local currency) in the
company's cash flow.

S&P anticipates annual capital expenditures of about
US$150 million given the launch of high-definition television
(HDTV) and rise in its dividend payout, but the current rating
reflects S&P's expectation that Globo will maintain its
commitment to a sound financial profile and robust cash
position.

The stable outlook reflects S&P's expectation that Globo will
maintain investment and dividend distribution policies moderate
enough to assure the maintenance of a robust cash cushion and
strong credit metrics for the rating category.  The strength of
financial metrics is crucial in mitigating risks related to
Globo's limited business profile, which is very dependent on one
market (Brazil) and on the inherently volatile advertising
industry -- still the company's main source of revenues.

?The rating could be lowered if the company adopts a less-
prudent approach toward acquisitions (not incorporated in the
current rating) or dividend distribution, resulting in a
reduction of the company's cash cushion.  At the same time, we
would view recurring EBITDA margins lower than 18%-20%, a
consequence of a looser spending cycle in broadcasting TV, as a
negative factor for the rating,? Ms. Zaniboni added.

Headquartered in Rio de Janeiro, Globo Comunicacao e Partipacoes
S.A. is Brazil's largest media group, owned by the Marinho
family.  TV Globo is Brazil's leading broadcast TV network,
accounting for over 75% of Globo Comunicacao's net revenues and
comprised of five television stations owned by Globo Comunicacao
as well as 116 independent affiliated TV stations broadcasting
the Globo Comunicacao signal over Brazil.  Globo Comunicacao has
other business activities including: sound-recording, magazine
publishing and printing, pay-TV production and programming, and
interests in Brazil's leading satellite direct-to-home and cable
operator.


GOL LINHAS: Incurs BRL171.7MM Consolidated Net Loss in 2Q 2008
--------------------------------------------------------------
GOL Linhas Aereas Inteligentes S.A., the parent company of
Brazilian airlines GOL Transportes Aereos S.A. and VRG Linhas
Aereas S.A., reported its financial results for the second
quarter of 2008.

                 Operating & Financial Highlights:

   -- Net revenues reached BRL1.5 billion, representing growth of
      27.2% compared to the same period last year.  The company
      transported 7.1 million passengers in the quarter,
      representing growth of 14.3% over second quarter 2007.
      Ancillary revenues (cargo and other) increased 18.3% over
      second quarter 2007 to BRL124.8 million.

   -- Consolidated net loss for the quarter was BRL171.7 million
      (US$104.1 million).

   -- Consolidated operating costs per ASK (CASK) increased 15.4%
      from 14.33 cents (BRL) in second quarter 2007 to 16.53
      cents (BRL) in second quarter 2008.  Non-fuel CASK
      increased 12.1% to 9.66 cents (BRL) due to lower aircraft
      utilization caused by recent ANAC regulations that
      established minimum ground times between landing and
      takeoff at all of Brazil's airports, extraordinary expenses
      related to the shut down of intercontinental destinations
      including aircraft return  expenses (during second quarter
      2008, VRG ceased operations to Mexico and Madrid), and an
      increase in salaries, wages and benefits, sales and
      marketing and depreciation.

   -- At June 30, the company's total liquidity was BRL2.8
      billion, comprised of: cash, cash equivalents and
      short-term investments of BRL737.7 million, accounts
      receivable of BRL339.9 million, BRL485 million in unused
      working capital credit lines, BRL554.6 million in deposits
      with lessors and BRL729.7 million deposited with Boeing as
      advances for aircraft acquisitions.

   -- Consolidated domestic RPKs increased 10.4% and ASKs 3.8%,
      versus first quarter 2008.  Consolidated international
      revenue passenger kilometers (RPKs) decreased 27.2% and
      ASKs 23.1% versus first quarter 2008.

   -- Consolidated RPKs increased 20.1% from 5,741 million in
      second quarter 2007 to 6,897 million in second quarter 2008
      and ASKs increased 22.8% from 8,692 million in second
      quarter 2007 to 10,677 million in second quarter 2008.
      Consolidated average load factor decreased 1.4 percentage
      points versus second quarter 2007 to 64.6%.  GTA's RPKs
      increased 3% from 4,959 million in second quarter 2007 to
      5,109 million in second quarter 2008 and ASKs increased
      6.3% from 7,215 million in second quarter 2007 to
      7,666 million in second quarter 2008.  GTA's average load
      factor decreased 2.1 percentage points to 66.6%.  VRG's
      RPKs increased 128.6% from 782 million in second quarter
      2007 to 1,788 million in second quarter 2008 and ASKs
      increased 103.9% from 1,477 million in second quarter 2007
      to 3,011 million in second quarter 2008.  VRG's average
      load factor was 59.4%, an increase of 6.5 percentage
      points.  Consolidated break-even load-factor was 77.8%, up
      5.7 percentage points over second quarter 2007.

   -- Consolidated passenger yields increased 7.7% to BRL19.43
      cents (domestic yields increased 11.1% and international
      yields decreased 8.7% versus second quarter 2007).  RASK
      increased 3.5% over second quarter 2007 to 13.72 cents
      (BRL).  Average fares were BRL196.

   -- The domestic market grew 1.9% over first quarter 2008,
      despite the fact that the second quarter is historically a
      weak period of demand (seasonally) for the industry, and
      11% compared to second quarter 2007, 2.1 times the
      estimated Brazilian GDP growth.

   -- GTA and VRG now offer over 740 daily flights to 59
      different destinations in Brazil and South America, the
      most of any airline group.  In second quarter 2008, GTA
      added 9 new daily flight frequencies and served 56
      destinations.  VRG added 21 new daily flight frequencies,
      serving 18 destinations.  The company's low-cost operating
      structure permits flights to medium-sized cities with lower
      traffic volumes, allowing GOL to serve various destinations
      outside of Brazil's main economic centers.

   -- In line with its fleet renewal plan, the company received
      two 737-800 NG and removed seven 737-300s and three 767-300
      from the operating fleet during the quarter, resulting in
      a net reduction of five aircraft in the narrow body
      operating fleet.  The company plans to end 2008 with a
      consolidated fleet of 104 aircraft, comprised of 737-800
      and 737-700 aircraft.

   -- In June, GOL ranked second in sustainability consulting
      group Management & Excellence's Latin American corporate
      governance study (The Best Governed Major Latin
      Corporations 2008).  According to the study, conducted in
      partnership with LatinFinance magazine, GOL employs 90.2%
      of the required positive corporate governance practices
      included in the analysis, compared to an average score of
      62.34% by the 50 companies included in the research.  GOL
       was the only airline named in the report.

   -- On June 26, Brazilian Antitrust Authority (CADE) approved
      GOL's acquisition of VRG, effected on April 9, 2007,  with
      no restrictions.  On July 30, GOL requested ANAC approval
      of a proposed organizational reorganization of its
      subsidiaries, GTA and VRG, merging them into one airline.
      Under the proposed reorganization, the airline will
      maintain the ?GOL? and ?VARIG? brands and respect all VRG
      and GTA's current rights and obligations.  The
      reorganization  will not affect GOL's public shareholders.

   -- In second quarter 2008, VRG finalized interline agreements
      with Copa Airlines and American Airlines.  Passengers
      traveling on these airlines are now able to purchase
      tickets for all routes served by VRG in Brazil and South
      America.

   -- On Aug. 6, the company's Board of Directors approved the
      suspension of dividend payments for the remainder of the
      2008 fiscal year, but guaranteed a minimum payment of 25%
      of the year's consolidated net income.  The company ended
      the quarter with 26.5% of its shares floating in the
      market.  GOL's shares presented average daily trading
      volumes of US$18.3 million (BRL30.3 million) during second
      quarter 2008.

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
July 25, 2007, Fitch Ratings affirmed the 'BB+' foreign and
local currency issuer default ratings of Gol Linhas Aereas
Inteligentes S.A.  Fitch also affirmed the outstanding US$200
million perpetual bonds and US$200 million of senior notes due
2017 at 'BB+' as well as the company's 'AA-' (bra) national
scale rating.  Fitch said the rating outlook is stable.


PROPEX INC: Wants Plan-Filing Deadline Extended to October 20
-------------------------------------------------------------
Propex Inc. and its debtor-affiliates ask the U.S. Bankruptcy
Court for the Eastern District of Tennessee to extend their
exclusive periods for filing a plan of reorganization until
October 20, 2008, and for soliciting votes for that plan until
December 19, 2008.

An extension of the exclusive periods is necessary to provide
the Debtors with sufficient time to negotiate the terms of a
Chapter 11 plan while allowing them to meet their obligations
under the DIP Credit Agreement, Henry J. Kaim, Esq., at King &
Spalding, LLP, in Houston, Texas, states.

According to Mr. Kaim, cause exists to extend the exclusive
periods considering the size and complexity of the Debtors'
cases.  He declares that the Debtors have US$585,700,000 in
assets and approximately US$527,400,000 in liabilities.  The
Debtors operate in 40 countries around the world with
approximately 3,200 employees.  Mr. Kaim adds that 590 claims
have been filed against the Debtors as of July 16, 2008.

Mr. Kaim asserts that since the bankruptcy filing, the Debtors'
management and employees have devoted substantial time and
effort to a number of tasks, including obtaining US$60,000,000
postpetition financing, reviewing executory contracts and
leases, and providing the Debtors' business plan to the DIP
lenders and creditors.

The Debtors clarify that the extension request is not intended
to pressure creditors.  Rather, the Debtors assert they need
more time to propose a viable plan of reorganization as
contemplated in the DIP Credit Agreement.

Mr. Kaim maintains there are several unresolved contingencies in
the Debtors' bankruptcy cases.  An important contingency to
resolve is the issue raised by the Official Committee of
Unsecured Creditors with respect to the validity of a lien on
the Debtors' foreign subsidiaries, which may affect the proposed
plan negotiations, Mr. Kaim points out.

The Debtors are still reviewing their contracts and lease
agreements to determine the benefits they contribute to their
estates.

                         About Propex Inc.

Headquartered in Chattanooga, Tennessee, Propex Inc. --
http://www.propexinc.com/-- produces geosynthetic, concrete,
furnishing, and industrial fabrics and fiber.  It is produces
primary and secondary carpet backing.  Propex operates in North
America, Europe, and Brazil.

The company and its debtor-affiliates filed for Chapter 11
protection on Jan. 18, 2008 (Bankr. E.D. Tenn. Case No. 08-
10249).  The debtors' has selected Edward L. Ripley, Esq., Henry
J. Kaim, Esq., and Mark W. Wege, Esq. at King & Spalding, in
Houston, Texas, to represent them.  As of Sept. 30, 2007, the
debtors' balance sheet showed total assets of US$585,700,000 and
total debts of US$527,400,000.  The Debtors' exclusive period to
file a plan of reorganization expired on Aug. 21, 2008.

(Propex Bankruptcy News, Issue No. 14; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)


SUN MICROSYSTEMS: Moody's Confirms Ba1 Corporate Family Rating
--------------------------------------------------------------
Moody's Investors Service has affirmed the ratings of Sun
Microsystems Inc. and revised the outlook to negative from
stable.

These ratings were affirmed:

   -- Corporate Family Rating -- Ba1

   -- Probability of Default Rating -- Ba1

   -- US$550 Million Senior Unsecured Notes due 2009 ? Ba1
      (LGD-5, 76%)

   -- Shelf Registration for Senior Unsecured, Subordinated Debt
      and Preferred Securities - (P)Ba1 (LGD-5, 76%); (P)Ba2
      (LGD-6, 99%); and (P)Ba2 (LGD-6, 99%)

The negative outlook reflects Moody's expectations of continued
deterioration in Sun's operating profile in view of declining
product sales, reduced profitability and market share
contraction amid the current softening global macro-economic
environment.  The negative outlook also incorporates concerns
about the company's ability to support somewhat aggressive
financial policies given the cyclical nature of its network
computing business.  For example, how the company manages share
repurchases and acquisitions during a period of weaker operating
performance will be an important factor in Moody's analysis of
Sun's Ba1 ratings. Ratings could be downgraded should Moody's
witness a pronounced increase in business or financial risk,
loss of market share, ASP pressure and/or gross/operating margin
erosion.

Sun's underperformance stems from lower (average) unit prices
resulting in gross margins below 45% in the last two quarters.
The company's product mix has changed as the demand for high-end
servers (which carry richer margins) has declined and revenues
from lower margin mid-range and enterprise storage products
increased as a percent of revenues.  According to the most
recent server industry report from Gartner (for the quarter
ended March 2008), Sun has fallen to fourth place after tying
Dell (A2/Stable) in 2007 for the number three server position
worldwide.  In recent quarters, Dell has recorded strong revenue
and shipment growth that outpaced the industry.

Moody's affirmation of Sun's Ba1 rating recognizes the company's
solid global market position, improving (though modestly
concentrated) geographic and customer diversification, stable
recurring revenue stream in the form of long-term support
service contracts and management's track record of maintaining
relatively good financial flexibility.

The rating is constrained by the following factors, which
Moody's will monitor closely going forward: (i) the new
US$1 billion stock repurchase program, which follows its soon-
to-be completed US$3 billion share buyback program (implemented
May 2007); (ii) potential appetite for further large cash
acquisitions; (iii) declining, albeit sizeable cash and
marketable securities balance; (iv) potential for weaker free
cash flow generation stemming from declining ASPs and reduced
end market demand for high-end servers from financial services,
telecommunications and retail customers, where Sun has large
exposures; (v) a challenging U.S. macro-environment (U.S.
revenues down 8% in fiscal 2008); sluggish EMEA growth (5%
revenue growth in fiscal 2008 vs. 7.6% in fiscal 2007); and
signs of sharply lower growth in Asia-Pacific (2.7% revenue
growth in fiscal 2008 vs. 11.2% in fiscal 2007); and (vi) Sun's
ability to manage its operating expenses in a more difficult
business environment.

Moody's expects Sun to generate lower gross cash flow over at
least the next quarter as it adjusts to lower sales volumes and
manages reduced/delayed demand from U.S. and Asian customers.
Despite operating weakness, Sun's financial position remains
solid. Cash and liquid long-term investments currently
approximate US$3.3 billion (down from $5.9 billion at fiscal
year end 2007) compared to US$1.3 billion of senior unsecured
debt.

Headquartered in Santa Clara, California, Sun Microsystems Inc.
(NASDAQ: JAVA) -- http://sun.com/-- provides network computing
infrastructure product and service solutions worldwide.  Sun
Microsystems conducts business in 100 countries around the
globe, including Brazil, Argentina, India, Hungary, and the
United Kingdom.  Net revenues for the fiscal year ended June 30,
2008 were US$13.9 billion.


TAM SA: Reports 72.5% International Market Share for July 2008
--------------------------------------------------------------
TAM S.A. reported its operating data for July 2008, as disclosed
by the Brazilian National Civil Aviation Agency (ANAC).

According to ANAC, TAM registered 8.0% growth in domestic RPK
(demand) compared to the same period last year, and 13.8%
increase in domestic ASK (supply).  In July, market demand
increased 7% and market supply increased 14.8%.  TAM registered
domestic market share (RPK) of 51.1%, a 0.5 p.p. increase
compared to the same period in 2007. TAM's domestic load factor
was 70.4%, 3.5 p.p. higher than the market average of 66.9%.

In the international market, TAM registered 37.5% growth in RPK
and 27.2% in ASK, compared to July 2007.  The company attained
market share of 72.5%, representing 8.4 p.p. growth year on
year.  TAM attained 81.5% load factor, 2.3 p.p. higher than the
market average of 79.2%.

  Operating data                  July 2008   July 2007   Var.%
  --------------------------------------------------------------
  Domestic Market
    ASK (millions) - Supply         3,074       2,701    13.8%
    RPK (millions) - Demand         2,164       2,004     8.0%
    Load Factor                     70.4%       74.2%  -3.8 p.p.
    Market share                    51.1%       50.6%   0.5 p.p.
  International Market
    ASK (millions) - Supply         1,821       1,432    27.2%
    RPK (millions) - Demand         1,484       1,079    37.5%
    Load Factor                     81.5%       75.4%   6.1 p.p.
    Market share                    72.5%       64.1%   8.4 p.p.

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

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

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
July 14, 2008, Standard & Poor's Ratings Services lowered its
long-term corporate credit rating on Brazil-based airline TAM
S.A. to 'BB-' from 'BB'.  S&P's outlook is revised to stable
from negative.

As reported in the TCR-Latin America on June 23, 2008, Fitch
Ratings affirmed the 'BB' Foreign and Local Currency Issuer
Default Ratings of TAM S.A.  Fitch also affirmed the 'BB' rating
of its US$300 million senior unsecured notes due in 2017 as well
as the company's 'A+(bra)' national scale rating and its first
debentures issuance of BRL500 million.  Fitch revised its rating
outlook to negative from stable.


TAM SA: Net Income Ups 2% to BRL50.2 Million in 2nd Quarter 2008
----------------------------------------------------------------
(PRNewswire-FirstCall/Pam)

TAM S.A. reported its second quarter results for 2008.

                        Financial Performance

   -- Total CASK increased by 8.4% in second quarter 2008
      compared to second quarter 2007, and CASK excluding fuel
      decreased 3.4%.

   -- EBIT and EBITDAR margins of 2.7% and 12% respectively.

   -- Net income of BRL50.2 million, a positive margin of 2%.

   -- TAM's total cash and cash equivalents equalled BRL2,009
      million.

   -- Return on Assets of 2.4%.

   -- Return on Equity of 10.1%.

                      Operational Performance

Domestic Operations

   -- TAM reached 48.2% average market share in second quarter
      2008.

   -- ASKs (capacity) increased 13.6% in second quarter 2008
      compared to second quarter 2007 as a result of the net
      increase in the operating narrow body fleet of four
      aircraft, composed by the increase of 13 A320 and 3 A321,
      compensated by the elimination of the Fokker 100 (in second
      quarter 2007 TAM had 12 F-100 in its operating fleet).
      Also due to the increase in block hours by aircraft from
      12.6 hours/day to 12.7 hours/day (total operation).

   -- RPKs (demand) increased 7.8% in second quarter 2008
      compared to second quarter 2007.

   -- TAM's domestic load factor decreased to 68.6% in second
      quarter 2008, compared to 72.3% in second quarter 2007.

International Operations

   -- TAM reached 74% average market share in second quarter
      2008.

   -- ASKs (capacity) increased 21.6% in second quarter 2008, due
      to the increase of 2 A340 and 2 A330 into TAM's
      international operating fleet allowing the beginning of
      long haul daily flights to Frankfurt and Madrid.  In South
      America TAM started daily flights to Caracas and Montevideo
      through the increase in the narrow body fleet in the
      region.

   -- RPKs (demand) increased 29.3% comparing second quarter 2008
      with second quarter 2007.

   -- TAM's international load factor increased 4.3p.p. to 73.4%
      in second quarter 2008 compared to 69% in second quarter
      2007.

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

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

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
July 14, 2008, Standard & Poor's Ratings Services lowered its
long-term corporate credit rating on Brazil-based airline TAM
S.A. to 'BB-' from 'BB'.  S&P's outlook is revised to stable
from negative.

As reported in the TCR-Latin America on June 23, 2008, Fitch
Ratings affirmed the 'BB' Foreign and Local Currency Issuer
Default Ratings of TAM S.A.  Fitch also affirmed the 'BB' rating
of its US$300 million senior unsecured notes due in 2017 as well
as the company's 'A+(bra)' national scale rating and its first
debentures issuance of BRL500 million.  Fitch revised its rating
outlook to negative from stable.


* BRAZIL: Government Okays Concession Agreement for Jirau Plant
---------------------------------------------------------------
In a statement made by the Mines and Energy Ministy, the
Federative Republic of Brazil has approved a concession contract
to build the 3.3GW Jirau hydro plant, Business News Americas
reports.

BNamericas quotes Minister Edison Lobao as saying, "This project
will increase energy safety in Brazil.  The hydro plants in the
Madeira river complex are key to ensuring cheap and high quality
energy."

Brazilian President Luiz Inacio Lula da Silva attended the
ceremony for the signing of the contract, for which the bidding
for the construction of the plant went to Consorcio Energia
Sustentavel do Brasil, BNamericas relates.

According to BNamericas, Consorcio Energia Sustentavel do Brasil
is multinational energy group composed of Suez (50.1% stake),
Camargo Correa SA (9.9%) and Centrais Eletricas Brasileiras SA
(aka Eletrobras) subsidiaries Eletrosul and Chesf, each with a
20% stake.



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

MONITOR OIL: Files Chapter 11 Plan And Disclosure Statement
-----------------------------------------------------------
Monitor Oil PLC and its debtor-affiliates delivered to the
United States Bankruptcy Court for the Southern District of New
York on Aug. 8, 2008, a joint Chapter 11 plan of reorganization
and a disclosure statement explaining that plan.

A hearing is set for Sept. 3, 2008, at 10:00 a.m., to consider
the adequacy of the Debtors' disclosure statement.  Objections,
if any, are due Aug. 27, 2008.

The Court has set Aug. 27, 2008, at 4:30 p.m., as deadline for
creditors and governmental units to file proof of claims.

Upon emergence from Chapter 11 Bankruptcy, the Debtors will
raise at least US$15 million in exit funding that will be used
to pay:

    -- all amounts due under the Cash Collateral Order, including
       the initial US$3.5 million cash collateral amount;

    -- at least US$1,700,000 of additional cash collateral
       funding as provided for in the Budget attached hereto as
       Exhibit C, and

    -- at least US$10 million for working capital to fund
       reorganized Debtors' operations and to fund any additional
       costs associated with the adoption of the plan.

Furthermore, the Debtors will raise equity financing by (i)
private placement to institutional investors of shares of common
stock of Reorganized Debtors, and (ii) rights offering to the
current shareholders of the Debtors.  Under the rights offering,
for each share of common stock of the Debtors outstanding on
the record date, the Debtors' stockholders will be entitled to
purchase one additional Reorganized Debtors common share at
US$1.00 per share.  The proceeds from the equity financing will
be allocated through:

    -- the first US$10 million will be used to fund the working
       capital amount;

    -- the next US$5 million will be used to repay the cash
       collateral amount; and

    -- any and all amounts raised above the exit funding amount
       will be used (i) 50% for the repayment of the Debtors
       Notes on a pro rata basis, and (ii) 50% to fund the
       acceleration of Reorganized Debtors' business plan and for
       general corporate purposes.

If the Debtors raised less than US$10 million in the equity
financing, the second lien lenders will receive a senior secured
note of Reorganized Debtors in an amount equal to the entire
cash collateral amount on the plan's the effective date.  On the
one hand, if the Debtors raised between US$10 million and
US$15 million in the equity financing, the second lien lenders
will get a senior secured note of Reorganized Debtor in an
amount equal to the remaining portion of the cash collateral
amount that is not repaid by Reorganized Debtors on the plan's
effective date.

                  Treatment of Interests and Claims

A. Monitor Oil PLC (PLC)

                  Type                              Estimated
      Class       of Claims          Treatment      Recovery
      -----       ---------          ---------      ---------
      1           priority claims    unimpaired     100%
      2           secured claims     none
      3           general unsecured  impaired       100%
                   claims
      4           equity interest    impaired

B. Monitor Single Lift I Ltd. (MSL) and Monitor US FinCo
    Inc. (FinCo)

                  Type                              Estimated
      Class       of Claims          Treatment      Recovery
      -----       ---------          ---------      ---------
      1           priority claims    unimpaired     100%
      2           secured claims     unimpaired
      3           general unsecured  impaired       0%
                   claims
      4           equity interest    impaired       0%

Administrative claims will be paid in cash equal to the amount
of the allowed administrative expense claims in full
satisfaction.

General unsecured creditors of PLC will receive their allocable
share of one or more PLC notes which shall be considered debt
issued by the reorganized PLC in an aggregate principal amount
equal to the aggregate amount of all allowed unsecured claims
secured by a lien on all of the present assets of the
reorganized Debtors subordinate to the liens of second lien
lenders.  The PLC notes shall have a term of 2 years, which is
subject to a 1-year extension, if 50% of the notes are repaid
before maturity.  The PLC notes will be paid after payment in
full of the senior secured notes and the subsidiary secured
notes, if any.

The general unsecured claims include guarantee claims of the
second lien enders and bondholder Claims.  Since MSL's value is
less than the claims of the second lien lenders, the holders of
general unsecured claims of MSL will not receive any
distribution under the plan.

Second Lien Lenders will be paid in cash in full on the plan's
effective date.  If the cash collateral amount is not paid in
full, the second lien lenders will receive a senior secured note
issued by Reorganized PLC in an amount equal to the unpaid cash
collateral amount secured by first priority liens on all of the
assets of Reorganized PLC.  The second lien lenders will also
receive the subsidiary secured note with first priority liens on
all of the assets of MSL and FinCo.  Each second lien lender's
allocable share of the PLC notes will be reduced by the
aggregate amount received by the second lien lender pursuant to
the subsidiary secured note.

As of their bankruptcy filing, the Debtors owe at least
US$80 million to the second lien lenders plus US$1.45 million in
accrued interest and fees under the second lien credit agreement
dated Jan. 11, 2007.

Holders of common stock in PLC will continue to hold one share
of common stock in Reorganized PLC on account of each share of
common stock owned in PLC as of the Effective Date.  In
addition, each holder of common stock of PLC will receive a
right to purchase one new share of common stock in Reorganized
PLC for each share of common stock held on the record date under
the terms of the rights offering.

Holders of priority claims -- including priority tax claims --
will be paid in cash in full of their allowed priority claims.

On the plan's effective date, all equity interests will be
canceled.  Holders will not receive any distribution under the
plan.

A full-text copy of the Debtors' disclosure statement is
available for free at:

                http://ResearchArchives.com/t/s?30aa

A full-text copy of the Debtors' joint Chapter 11 plan of
reorganization is available for free at:

                http://ResearchArchives.com/t/s?30ab

                         About Monitor Oil

Headquartered in the Cayman Islands, Monitor Oil, Plc --
htpp://www.monitoroil.com/ -- an oil and gas service company
that provides oil and gas production solutions, offshore
services and engineering services.  The Monitor Group has
operations in London, England; Aberdeen, Scotland; Stavanger,
Norway; Caldicot, Wales; Shanghai, China and New York, United
States.

The company and two of its affiliates,  Monitor Single Lift 1,
Ltd., and Monitor US FinCo, Inc., filed for Chapter 11
Protection on Nov. 21, 2007 (Bankr. S.D.N.Y. Case No. 07-13709).
Eric Lopez Schnabel, Esq., at Dorsey & Whitney, L.L.P.,
represents the Debtor.  The U.S. Trustee for Region 2 appointed
five creditors to serve on an Official Committee of Unsecured
Creditors in the Debtors' cases.  Ira L. Herman, Esq., at
Thompson & Knight, LLP, represents the Committee.  As of
Dec. 31, 2007, the company disclosed total assets of
US$98,340,000 and total debts of US$56,125,000.


NS INVESTMENTS II: Proofs of Claim Filing Deadline is Aug. 16
-------------------------------------------------------------
NS Investments II Inc.'s creditors have until Aug. 16, 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.

NS Investments' shareholder decided on July 17, 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


NS INVESTMENTS III: Proofs of Claim Filing Is Until Aug. 16
-----------------------------------------------------------
NS Investments III Inc.'s creditors have until Aug. 16, 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.

NS Investments' shareholder decided on July 17, 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


NS INVESTMENTS IV: Deadline for Claims Filing Is Aug. 16
--------------------------------------------------------
NS Investments IV Inc.'s creditors have until Aug. 16, 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.

NS Investments' shareholder decided on July 17, 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


NS INVESTMENTS V: Proofs of Claim Filing Deadline Is Aug. 16
------------------------------------------------------------
NS Investments V Inc.'s creditors have until Aug. 16, 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.

NS Investments' shareholder decided on July 17, 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


NS INVESTMENTS VII: Proofs of Claim Filing Is Until Aug. 16
-----------------------------------------------------------
NS Investments VII Inc.'s creditors have until Aug. 16, 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.

NS Investments' shareholder decided on July 17, 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


NS INVESTMENTS IX: Proofs of Claim Filing Deadline Is Aug. 16
-------------------------------------------------------------
NS Investments IX Inc.'s creditors have until Aug. 16, 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.

NS Investments' shareholder decided on July 17, 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


NS INVESTMENTS XII: Deadline for Claims Filing Is Aug. 16
---------------------------------------------------------
NS Investments XII Inc.'s creditors have until Aug. 16, 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.

NS Investments' shareholder decided on July 17, 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


NS INVESTMENTS XIII: Proofs of Claim Filing Is Until Aug. 16
------------------------------------------------------------
NS Investments XIII Inc.'s creditors have until Aug. 16, 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.

NS Investments' shareholder decided on July 17, 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


NS INVESTMENTS XV: Proofs of Claim Filing Deadline Is Aug. 16
-------------------------------------------------------------
NS Investments XV Inc.'s creditors have until Aug. 16, 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.

NS Investments' shareholder decided on July 17, 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


NS INVESTMENTS XVI: Deadline for Claims Filing Is Aug. 16
---------------------------------------------------------
NS Investments XVI Inc.'s creditors have until Aug. 16, 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.

NS Investments' shareholder decided on July 17, 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: Parma Court 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.


SEAROCK PLUS: Deadline for Proofs of Claim Filing is Aug. 16
------------------------------------------------------------
Searock Plus Fund Ltd.'s creditors have until Aug. 16, 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.

Searock Plus' shareholder decided on July 16, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidator can be reached at:

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

Contact for inquiries:

               Anthony Johnson
               Telephone: (345)914-6314



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

WARNER MUSIC: International Revenue Up 17.2% in Third Qtr. 2008
---------------------------------------------------------------
Warner Music Group Corp. reported its third quarter 2008
financial results for the period ended June 30, 2008.

?This quarter, we continued to outperform our competitors, even
in the midst of a challenging recorded music environment,? said
Edgar Bronfman, Jr., Warner Music Group's Chairperson and CEO.
?We continue to advance our strategy to lead the recorded music
industry's transition with new business models, key partnerships
and successful A&R investments.  As we transform the business to
position it for future growth in an evolving industry, we remain
focused on driving profitability and cash flow, while prudently
managing capital and costs.?

Michael Fleisher, Warner Music Group's Executive Vice President
and CFO, added, ?Benefits from the steps we've taken to increase
our financial flexibility were evidenced this quarter by our
building cash balance and rising quarterly year-over-year Free
Cash Flow.  Our capital deployment strategy designed to improve
shareholder returns by conserving cash and sustaining A&R
investment levels remains a priority.?

                    Third Quarter Results

For the third quarter 2008, revenue grew 5.5% to US$848 million
from US$804 million in the prior-year quarter, and fell 1.1% on
a constant-currency basis.  This performance continues to
reflect the ongoing transition in the recorded music industry
characterized by a shift in consumption patterns from physical
sales to new forms of digital music and the continued impact of
digital piracy.  Domestic revenue declined 6.5%.  International
revenue grew 17.2%, and grew 3.6% on a constant-currency basis.
On a constant-currency basis, revenue grew in Europe and Canada.

Operating income from continuing operations grew 10.9% to
US$51 million from US$46 million in the prior-year quarter and
operating margin from continuing operations increased 0.3
percentage points to 6.0%.  OIBDA from continuing operations
increased 7.4% to US$116 million from US$108 million in the
prior-year quarter and OIBDA margin from continuing operations
grew 0.3 percentage points to 13.7%.  Operating income,
operating margin, OIBDA and OIBDA margin from continuing
operations for the third quarter of fiscal 2007 reflected the
net benefit of US$6 million from the Prior-Year Items.

Loss from continuing operations was US$9 million, or US$0.06 per
diluted share for the quarter, an improvement from a loss of
US$16 million, or US$0.11 per diluted share in the prior-year
quarter.  The net benefit of US$6 million from the Prior-Year
Items amounted to US$0.04 per diluted share.

The company reported a cash balance of US$338 million as of
June 30, 2008, an increase from the March 31, 2008 balance of
US$249 million, which rose from the Dec. 31, 2007 balance of
US$160 million.  As of June 30, 2008, the company reported total
long-term debt of US$2.27 billion and net debt (total long-term
debt minus cash) of US$1.93 billion.

For the quarter, net cash provided by operating activities was
US$89 million.  Free Cash Flow (defined as cash flow from
operations less capital expenditures and cash paid or received
for investments) was US$93 million, compared to Free Cash Flow
of US$57 million in the comparable fiscal 2007 quarter.
Unlevered After-Tax Cash Flow (defined as Free Cash Flow
excluding cash interest paid) was US$140 million, compared to
Unlevered After-Tax Cash Flow of US$105 million in the
comparable fiscal 2007 quarter.

Recorded Music

Revenue from the company's Recorded Music business increased
5.1% from the prior-year quarter to US$686 million, and was down
1.0% on a constant-currency basis.  The decline in constant-
currency revenue primarily reflected strength in Europe offset
by declines in the U.S., Asia-Pacific and Latin America.  Year-
over-year revenue increased in the international physical
Recorded Music business and the global digital Recorded Music
business on a constant-currency basis.

Recorded Music digital revenue of US$156 million grew 39.3% over
the prior-year quarter and represented 22.7% of total Recorded
Music revenue.  Domestic Recorded Music digital revenue amounted
to US$101 million or 31.7% of total domestic Recorded Music
revenue.  Digital sales strength was primarily driven by growth
in global online downloads, and to a lesser extent growth in
international mobile.

Major sellers in the quarter included titles from Madonna,
Disturbed, Plies, Luis Miguel and Frank Sinatra.  International
Recorded Music revenue climbed 19.2% from the prior-year quarter
to US$367 million, and rose 5.1% on a constant-currency basis,
while domestic Recorded Music revenue fell 7.5% from the prior-
year quarter to US$319 million.

The constant-currency growth in international Recorded Music
revenue in the quarter was the result of increases in the U.K.,
France and Germany.  Gains in international revenue were
attributable to improved local repertoire and international
releases as compared to the prior-year quarter and a
contribution from international touring and management
businesses.

Year-over-year revenue differences in the domestic Recorded
Music business were due to the timing of releases and declines
in the physical business, which are not currently being offset
by growth in the digital business.  In addition, domestic
retailers have continued to more actively manage their inventory
levels in response to the tougher economy and credit markets as
well as the changing underlying demand for physical recorded
music product.

Quarterly Recorded Music operating income remained flat at
US$66 million, resulting in an operating margin from continuing
operations of 9.6% compared to 10.1% in the prior-year quarter.
Recorded Music OIBDA from continuing operations remained flat at
US$110 million for the quarter.  Recorded Music OIBDA margin
from continuing operations contracted 0.8 percentage points to
16.0% from the prior-year quarter.  Recorded Music operating
income, OIBDA, operating margin and OIBDA margin from continuing
operations for the third quarter of fiscal 2007 reflected a
portion of the Prior-Year Items  -- a US$49 million benefit
related to our settlement with Bertelsmann AG regarding Napster
and US$33 million in expenses related to the company's fiscal
2007 realignment initiatives.

Music Publishing

Music Publishing revenue in the quarter increased 7.0% from the
prior-year quarter to US$168 million, and was down 0.6% on a
constant-currency basis.  Music Publishing revenue was flat
domestically, and grew 11.1% internationally, but declined 1.1%
internationally on a constant-currency basis.  Digital revenue
from Music Publishing amounted to US$10 million, representing
6.0% of total Music Publishing revenue.

On a constant-currency basis, the decline in mechanical revenue
of 14.3% was largely offset by a 7.9% increase in performance
revenue, a 6.3% rise in synchronization revenue, and a strong
increase in digital revenue.  Mechanical revenue weakness
reflected the industry-wide decline in physical record sales.

Music Publishing operating income amounted to US$15 million,
down 16.7% from US$18 million in the prior-year quarter,
resulting in an operating margin of 8.9%, down 2.5 percentage
points from the prior-year quarter.  Music Publishing OIBDA was
flat at US$33 million for the quarter and OIBDA margin of 19.6%
declined 1.4 percentage points from the prior-year quarter.
Music Publishing operating income, OIBDA, operating margin and
OIBDA margin for the third quarter of fiscal 2007 reflected a
portion of the Prior-Year Items -- a US$3 million benefit
related to our settlement with Bertelsmann AG regarding Napster
and US$1 million in expenses related to the company's fiscal
2007 realignment initiatives.

Warner Music Group Corp. -- http://www.wmg.com/-- (NYSE: WMG)
is a publicly traded in the United States.  With its broad
roster of new stars and legendary artists, Warner Music Group is
home to a collection of the best-known record labels in the
music industry including Asylum, Atlantic, Bad Boy, Cordless,
East West, Elektra, Lava, Nonesuch, Reprise, Rhino, Roadrunner,
Rykodisc, Sire, Warner Bros. and Word.  Warner Music
International, a leading company in national and international
repertoire, operates through numerous international affiliates
and licensees in more than 50 countries.  Warner Music Group
also includes Warner/Chappell Music, one of the world's leading
music publishers, with a catalog of more than one million
copyrights worldwide.

Outside the United States, the company has two subsidiaries in
Austria, one in Nova Scotia and another in Luxembourg.  It has
Latin American operations in Argentina, Brazil and Chile.

                         *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 2, 2008, Standard & Poor's Rating Services affirmed its
ratings on Warner Music Group, including its 'BB-' corporate
credit rating, based on S&P's expectation that the company will
have sufficient resources to meet its financial covenant step-
downs over the near term.  S&P also removed all ratings from
CreditWatch with negative implications, where they were placed
on Feb. 22, 2007.



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

* COSTA RICA: Improved Debt Cues Moody's Positive Outlook Shift
---------------------------------------------------------------
Moody's Investors Service has revised the outlook on Costa
Rica's key ratings to positive from stable in recognition of the
significant improvement in the country's fiscal and debt
positions and the likelihood of such improvement continuing in
the medium term despite ongoing global turbulence.

The outlook change affects Costa Rica's Ba1 foreign and local
currency government bond ratings.  The outlook on the Baa3
foreign currency country bond ceiling and on the Ba2 foreign
currency bank deposit ceiling was also revised to positive from
stable.

?Costa Rica's remarkable fiscal performance over the past few
years has been driven by significant expenditure restraint and
an improvement in revenues, reflecting not only the business
cycle but also a concerted effort to enhance collection,? said
Moody's Vice President -- Senior Analyst Alessandra Alecci.  ?As
a result, the fiscal and debt positions have improved to such a
degree that it would take a major crisis to reverse the virtuous
debt dynamics seen in recent years.?  Costa Rica's fiscal and
debt indicators have begun to converge towards the investment-
grade level.

The analyst said that the most surprising aspect of the
government's fiscal performance is the control of expenditures.
Despite campaign promises and pent-up demand for infrastructure
and social expenditures, outlays have actually contracted
significantly in recent years, in part due to lower interest
payments but also due to a more targeted effort to address
social needs.  The degree of autonomy of the Finance Ministry
from political influence has been particularly impressive, she
added, which is a testimony to the maturity of Costa Rica's
institutions.

?The decision to change the outlook to positive comes at a
delicate time for Costa Rica, whose key macroeconomic variables
are being affected by the global slowdown and credit crunch,?
said Ms. Alecci.  ?We focus our ratings on the fundamentals
rather than the business cycle.?

She said that the strength of the fiscal anchor and the fact
that the majority of Costa Rica's public debt is in local
currency and mostly held by public entities mitigates the risk
associated with a potential, albeit unlikely, disorderly exit
from the current exchange rate regime.

?Notwithstanding recent strong pressures on the balance of
payments and the volatility in the exchange rate market, the
external position and the economy as a whole is equipped to deal
with this type of shock,? said the analyst.  ?Foreign exchange
reserves remain at historical highs relative to imports and to
the money base, giving the authorities ammunition to handle the
current difficult transition towards a free-floating exchange
rate regime as well as the widening of the current account
deficit.?

Costa Rica has been the recipient of unprecedented high levels
of foreign direct investment in recent years, which have more
than fully financed its current account deficit, despite the
delay in joining Central American Free Trade Agreement or CAFTA.
Given the resilience and diversification of its economic base,
there is, thus far, little evidence of a sharp drop in non-debt
creating external financing that would lead to a meaningful
deterioration of Costa Rica's external debt indicators.

?We will carefully monitor how Costa Rica navigates through
these challenging times,? said Ms. Alecci.  ?In particular, we
will observe the performance of the fiscal accounts and whether
financial dollarization, one of the key rating constraints, will
significantly increase.?  A severe problem with the exchange
rate regime would have important implications for the banking
system which is close to 50% dollarized, the analyst
underscored.



===============
H O N D U R A S
===============

SBARRO INC: S&P Cuts Rtg. to 'CCC+' on Covenant Compliance Worry
----------------------------------------------------------------
Standard & Poor's Ratings Services has lowered its corporate
credit rating on Melville, N.Y.-based Sbarro Inc. to 'CCC+' from
'B-'. Concurrently, S&P lowered the ratings on the company's
US$25 million revolving facility and US$183 million first-lien
term loan to 'B-' from 'B+', and revised the recovery ratings on
these facilities to '2' from '1'.  S&P also lowered the rating
on the US$150 million senior notes to 'CCC-' from 'CCC+' and
affirmed the recovery rating of '6' on this debt issue.  The
outlook is negative.

?The downgrade reflects the growing possibility that Sbarro will
breach financial covenants under the senior secured credit
facilities because poor operating performance is continuing to
erode EBITDA,? said Standard & Poor's credit analyst Mariola
Borysiak. The EBITDA cushion narrowed significantly in the
quarter ended June 30, 2008, and the maximum leverage covenant
becomes more restrictive in the fourth quarter ending
Dec. 31, 2008.  ?Pro forma for the change in the covenant level,
Sbarro would be out of compliance,? added Ms. Borysiak.

Based in Melville, New York, Sbarro Inc. --
http://www.sbarro.com/-- and its franchisees develop and
operate family oriented cafeteria-style Italian restaurants
principally under the ?Sbarro?, ?Mama Sbarro?, ?Carmela's?,
?Sbarro The Italian Eatery?, and ?Sbarro Fresh Italian Cooking?
names.  The company has approximately 1,040 restaurants in 43
countries.  Sbarro restaurants feature a menu of popular Italian
food, including pizza, a selection of pasta dishes and other hot
and cold Italian entrees, salads, sandwiches, drinks and
desserts.  The company announced on June 19, 2006, its
international expansion by opening more than 25 restaurants in
Guatemala, El Salvador, Honduras, The Bahamas and Romania.



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

CLEAR CHANNEL: Implements Stock Fund Blackouts Prior to Merger
--------------------------------------------------------------
Prior to the closing of the merger between Clear Channel
Communications, Inc. and BT Triple Crown Merger Co., Inc., Clear
Channel on July 18, 2008, provided a notice to the directors and
executive officers of the company and to the participants and
beneficiaries of the Clear Channel, Inc. 401(k) Savings Plan
that activity in the Clear Channel Common Stock Fund under the
401(k) Plan will be closed temporarily to any transactions,
beginning at the closing of trading on July 28, 2008.

BT Triple Crown Merger Co., Inc. is an indirect subsidiary of CC
Media Holdings, Inc.

The blackout period for the Stock Fund was contingent upon
approval of the merger by Clear Channel's shareholders.

Also, on July 18, 2008 notice was provided to the directors and
executive officers of Clear Channel and to the participants and
beneficiaries of the Clear Channel, Inc.  Nonqualified Deferred
Compensation Plan that activity in the Company Stock Fund under
the NQ Plan, which consists of deemed investments in Company
stock, will be closed temporarily to any transactions, beginning
at the closing of trading on July 28, 2008.  The blackout period
for the NQ Plan was contingent upon approval of the Merger

As reported by the Troubled Company Reporter on July 31, 2008,
in connection with the completion of the merger with BT Triple
Crown Merger Co., Clear Channel Communications, Inc. reported
the expiration and final results of its tender offer to purchase
any and all of its subsidiary AMFM Operating Inc.'s outstanding
8% Senior Notes due 2008 (CUSIP No. 158916AL0).  The tender
offer and consent solicitation was made pursuant to the terms
and conditions set forth in the AMFM Offer to Purchase and
Consent Solicitation Statement for the Notes dated Dec. 17,
2007, and the related Letter of Transmittal and Consent.

The tender offer and consent payment deadline expired at
8:00 a.m., New York City time, on July 30, 2008.  The aggregate
principal amount of the Notes validly tendered (and not validly
withdrawn) was US$639 million, representing approximately 99.12%
of outstanding Notes.

                       About Clear Channel

Based in San Antonio, Texas, Clear Channel Communications Inc.
(NYSE:CCU) -- http://www.clearchannel.com/-- is a media
and entertainment company specializing in ?gone from home?
entertainment and information services for local communities and
premiere opportunities for advertisers.  The company's
businesses include radio, television and outdoor displays.
Outside U.S., the company operates in 11 countries -- Norway,
Denmark, the United Kingdom, Singapore, China, the Czech
Republic, Switzerland, the Netherlands, Australia, Mexico and
New Zealand.  As of Dec. 31, 2007, it owned 717 core radio
stations, 288 non-core radio stations which are being marketed
for sale and a leading national radio network operating in the
United States.  Clear Channel's revenues for year ending
Dec. 31, 2007 were US$6.8 billion.

As disclosed in the Troubled Company Reporter-Latin America on
July 30, 2008, in-line with prior guidance, Fitch Ratings
downgraded the Issuer Default Rating and outstanding debt rating
of Clear Channel Communications, Inc. as: IDR to 'B' from 'BB-';
and Senior unsecured non-guaranteed notes to 'CCC/RR6' from
'BB-'.

Fitch has also removed Clear Channel from rating watch negative,
where it was originally placed on Oct. 26, 2006.  The rating
outlook is negative.  Additionally, Fitch has withdrawn all
existing ratings of Clear Channel.

As reported by the Troubled Company Reporter-Latin America on
June 23, 2008, Standard & Poor's Ratings Services lowered its
corporate credit rating on Clear Channel Communications Inc. to
'B' from 'B+' based on the proposed financing of the company's
pending leveraged buyout by the private equity group co-led by
Thomas H. Lee Partners L.P. and Bain Capital Partners LLC.

At the same time, S&P removed all the ratings from CreditWatch,
where they had been placed with negative implications on
Oct. 26, 2006, following the company's announcement that it was
exploring strategic alternatives to enhance shareholder value,
including a possible sale of the company.  The outlook is
stable.

At the same time, Standard & Poor's assigned its 'B' bank loan
rating and '3' recovery rating on Clear Channel's
US$16.1 billion of new senior secured credit facilities.  The
'3' recovery rating indicates S&P's expectation for meaningful
(50% to 70%) recovery of principal and pre-petition interest in
the event of a payment default.

S&P also assigned its 'CCC+' rating on the company's
US$2.3 billion of new senior unsecured notes, with a recovery
rating of '6', indicating its expectation for negligible (0% to
10%) recovery in the event of a payment default.

At the same time, S&P lowered its rating on the company's
US$5.1 billion of existing senior unsecured notes to 'CCC+' from
'B-' and assigned a recovery rating of '6' on these issues.

The 'B-' rating on the company's existing 8% senior notes due
November 2008 at its AMFM Operating Inc. subsidiary remains on
CreditWatch with negative implications pending the completion of
the company's tender offer for these notes.

S&P lowered the rating on Clear Channel's existing
US$750 million of 7.65% senior notes due 2010 to 'CCC+' from
'B-' and assigned a recovery rating of '6', reflecting the
potential for this issue to remain outstanding until maturity.

As reported by the TCR-LA on August 31, 2008, Moody's Investors
Service assigned a B2 corporate family rating and B2 probability
of default rating to Clear Channel Communications, Inc.  In
addition, Moody's assigned a B1 rating to Clear Channel's new
US$15.77 billion senior secured credit facilities and a Caa1
rating to its proposed US$2.31 billion guaranteed senior
unsecured notes.  Moody's also downgraded the company's legacy
senior unsecured notes to Caa1 from Baa3 and affirmed the SGL2
speculative grade liquidity rating.  The rating outlook is
stable.  This concludes Moody's review of Clear Channel's
ratings, which was initiated on Oct. 26, 2006, in connection
with the company's announcement that its Board of Directors was
evaluating various strategic alternatives to enhance shareholder
value.


EMPRESAS ICA: Bags Construction Contracts for MXN642.6 Million
--------------------------------------------------------------
Empresas ICA, S.A.B de C.V., a.k.a. ICA, has been awarded the
contracts for the construction of the Convention and Exposition
Center in San Luis Potosi and for the rehabilitation of runway
05R-23L and complementary works at the Mexico City International
Airport, with a combined value of MXN642.6 million.

The public works contract for the Convention and Exposition
Center in San Luis Potosi was awarded to ICA through a public
bidding process by the state government.  The turnkey project
has a value of MXN428.6 million, and will be executed over a
term of 362 days.

The second contract includes the rehabilitation of runway 05R-
23L, the reconstruction of its shoulders, the construction of a
runway lighting system, and complementary works at the Mexico
City International Airport.  The MXN214 million public works
contract was awarded to ICA by Aeropuertos y Servicios
Auxiliares through a national bidding process.  The unit price
contract will be executed over a four month period.

Both projects are in the Civil Construction segment.  Execution
is expected to begin immediately, and both will be consolidated
100% in ICA's financial statements.

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

                              *     *     *

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


RADIOSHACK CORP: To Offer US$300 Mil. Convertible Senior Notes
--------------------------------------------------------------
RadioShack Corporation has intended to offer, subject to market
and other conditions, US$300 million aggregate principal amount
of its convertible senior notes due 2013 in a private placement
to qualified institutional buyers pursuant to Rule 144A under
the Securities Act of 1933, as amended.  In connection with the
offering, RadioShack intends to grant the initial purchasers a
30-day option to purchase up to US$50 million aggregate
principal amount of additional notes solely to cover over-
allotments, if any.

The notes will be convertible, subject to certain conditions,
into cash and shares of RadioShack's common stock, if any.  The
interest rate, conversion rate, offering price and other terms
of the notes will be determined by negotiations between
RadioShack and the initial purchasers of the notes.

RadioShack intends to use a portion of the net proceeds of this
offering to pay the net cost of convertible note hedge and
warrant transactions that it expects to enter into with
affiliates of certain initial purchasers, which are referred to
as the option counterparties.  RadioShack also intends to use a
portion of the net proceeds from this offering to repurchase
shares of its common stock concurrently with the offering in
privately negotiated transactions. RadioShack expects to use the
remaining proceeds for general corporate purposes, including as
a source of working capital to replace RadioShack's
US$300.0 million revolving credit facility, which is scheduled
to terminate in June 2009.

In connection with the pricing of the notes, RadioShack intends
to enter into privately-negotiated convertible note hedge
transactions relating to shares of its common stock initially
issuable upon conversion of the notes with the option
counterparties and expects to enter into privately-negotiated
warrant transactions relating to shares of its common stock with
the option counterparties, pursuant to which it may be obligated
to issue shares of its common stock.  The convertible note hedge
transactions are expected to reduce the potential dilution to
RadioShack's common stock upon any conversion of the notes.
Although the warrant transactions could separately have a
dilutive effect to the extent that the price of RadioShack's
common stock exceeds the applicable strike price of the
warrants, from RadioShack's perspective, the convertible note
hedge transactions and warrant transactions, taken together,
will have the net economic effect of increasing the conversion
price of the notes.

If the initial purchasers exercise their over-allotment option
to purchase additional notes, the notional size of the
convertible note hedge transactions and warrant transactions
will be automatically increased so that they also relate to a
number of shares of RadioShack's common stock initially issuable
upon conversion of the additional notes.

In connection with establishing their initial hedge of these
convertible note hedge and warrant transactions, RadioShack has
been advised that the option counterparties and/or their
respective affiliates expect to, concurrently with, or shortly
after, the pricing of the notes, enter into various over-the-
counter derivative transactions with respect to RadioShack's
common stock and/or purchase shares of RadioShack's common
stock in secondary market transactions.  These activities could
have the effect of increasing or preventing a decline in the
price of RadioShack's common stock concurrently with or
following the pricing of the notes.  In addition, the option
counterparties and/or their respective affiliates expect to
modify their hedge position following the pricing of the notes
from time to time by entering into or unwinding various
derivative transactions with respect to RadioShack's common
stock and/or by purchasing or selling RadioShack's common stock
in secondary market transactions (and are likely to do so during
any observation period related to the conversion of the notes).
These transactions and activities could have the effect of
increasing, preventing a decline in or adversely impacting the
value of RadioShack's common stock and/or the value of the
notes.

RadioShack Corporation (NYSE: RSH) -- http://radioshack.com/--
retails consumer electronics specialty products through almost
6,000 company-operated stores and dealer outlets in the United
States, over 100 RadioShack locations in Mexico and nearly 800
wireless phone kiosks.


RADIOSHACK CORP: Fitch to Rate Planned US$300MM Conv. Notes 'BB'
----------------------------------------------------------------
Fitch Ratings expects to assign a rating of 'BB' to RadioShack
Corporation's proposed US$300 million convertible senior
unsecured notes due 2013.  The proceeds from the offering will
be used to finance the net cost of the convertible note hedge
and warrant transactions that RadioShack expects to enter into
with affiliates of Citigroup Global Markets Inc. and Banc of
America Securities LLC, as well as share repurchases in
connection with the convertible notes offering.

The balance will be used for general corporate purposes,
including working capital uses as RadioShack's US$300 million
revolving credit facility is scheduled to terminate in June
2009.  The Rating Outlook is Negative.

The rating reflects RadioShack's broad geographic store base and
recent improvement in operating results and credit metrics due
to management's turnaround plan.  In the last 12 months ending
June 30, 2008, EBIT margin increased to 8.9% from 4.2% in fiscal
2006.  This resulted in credit metrics strengthening, with total
adjusted debt/EBITDAR improving to 3.6 times versus 4.8x and
EBITDAR to interest plus rent increasing to 2.3x versus 1.8x
during the comparable time period.  Fitch anticipates
RadioShack's leverage will increase following the convertible
notes issuance.

However, the convertible notes will provide the company with
additional liquidity when the US$300 million credit facility
expires next year.  In addition, Fitch expects the company will
remain prudent in its financial management and does not expect
RadioShack to repurchase any additional shares in fiscal 2008
besides the share repurchases in conjunction with the
convertible notes offering.

The rating also considers the continued soft operating trends in
many of RadioShack's business segments, Fitch's concern about
RadioShack's long-term ability to produce sustainable revenue
growth and profitability, and a highly competitive operating
environment.

RadioShack Corporation (NYSE: RSH) -- http://radioshack.com/--
retails consumer electronics specialty products through almost
6,000 company-operated stores and dealer outlets in the United
States, over 100 RadioShack locations in Mexico and nearly 800
wireless phone kiosks.


LEAR CORP: Reports US$18.3 Mln Net Income in Second Quarter 2008
----------------------------------------------------------------
Lear Corp. reported net sales of US$4.0 billion, slightly lower
than US$4.2 billion net sales in the same quarter in 2007.
Pretax income was US$55.8 million, including restructuring costs
of US$58.3 million while in the same period of 2007 pretax
income was US$143.9 million, including restructuring costs of
US$34.8 million and other special items of US$3.4 million.

Net income was US$18.3 million, or US$0.23 per share, for the
second quarter of 2008 as compared with net income of
US$123.6 million, or US$1.58 per share, for the second quarter
of 2007.

Bob Rossiter, Lear Chairperson, Chief Executive Officer and
President of Lear, said, ?Business conditions in North America
were very difficult in the second quarter, primarily due to
sharply lower industry production, a significant mix shift away
from full-size pickups and large SUVs and higher raw material
and energy prices.  In this challenging environment, the Lear
team remained focused on further diversifying our sales,
implementing structural cost reduction actions, investing in
growth opportunities and proactively managing our liquidity
requirements.  We have a clear operating plan and committed
liquidity to manage through the challenging business conditions
we see ahead.?

The decline in net sales for the quarter primarily reflects a
15% decline in industry production in North America, including
the impact of the American Axle strike, partially offset by
favorable foreign exchange.

                     Full-Year 2008 Outlook

Lear expects 2008 net sales to be approximately US$15.0 billion,
compared with its prior outlook of US$15.3 billion.  The
decrease is primarily the result of lower forecast in industry
production in North America.

Lear anticipates 2008 income before interest, other expense,
income taxes, restructuring costs and other special items (core
operating earnings) of US$550 to US$600 million, down from the
previous outlook of US$600 to US$640 million, also reflecting
lower industry production in North America.  Restructuring costs
in 2008 are estimated to increase to approximately
US$140 million, reflecting further capacity actions and census
reductions.

Key assumptions underlying Lear's financial outlook include
expectations for 2008 industry vehicle production in North
America of approximately 13.5 million units as compared with
about 13.8 million units in our previous guidance.  Lear expects
2008 production in North America for the Domestic Three to be
down about 15% from 2007.  In Europe, it expects industry
production of approximately 20.3 million units.  In addition, it
is assuming an exchange rate of US$1.54/Euro.

                     About Lear Corporation

Based in Southfield, Michigan, Lear Corporation (NYSE:LEA) --
http://www.lear.com/-- supplies automotive interior systems,
electrical distribution systems and related electronic products.
The company has around 91,000 employees at 215 facilities in 35
countries.  Outside the United States, Lear has subsidiaries in
Germany, Luxembourg, Sweden, Singapore, China, India, and
Mexico.

                          *     *     *

Lear Corp. still carries Standard & Poor's Ratings Services' B+
corporate credit, long-term foreign and local issuer credit
ratings, which the rating agency affirmed in May 2008.

Lear Corp. also carries B2 corporate family, bank loan debt and
probability-of-default ratings, and B3 senior unsecured debt
rating from Moody's Investors Service, which said the outlook is
stable.


SEMGROUP LP: Court OKs Use of Cash Collateral for White Cliff
-------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware permitted
SemGroup L.P. and its debtor-affiliates to use some cash
collateral for the completion of the US$240 million White Cliff
Pipeline project, The Calgary Herald reported.

?The existing investment will be imperiled, if not lost,? and
the finished project promises ?meaningful value? to the company
and creditors, Judge Brendan Linehan Shannon said, according to
the report.

         Parties Stipulate on the Management of White Cliff

The Debtors, General Electric Capital Corporation, PE-Pipeline
Services, LLC, and White Cliffs Pipeline, LLC, in a Court-
approved stipulation, agreed to a temporary restraining order
regarding the management and operations of White Cliffs.

The Troubled Company Reporter said on July 28, 2008, that GECC,
as administrative agent for a group of lenders on a
US$120,000,000 loan, on July 18, 2008, notified the Debtors that
they are in default under the prepetition secured loan, and that
all of SemCrude Pipeline, L.L.C.'s membership interest in non-
debtor White Cliffs Pipeline, LLC, ceased and became vested in
GECC.

Pursuant to the stipulation, SemCrude Pipeline LLC continued
until Aug. 8, 2008, in the managing the day-to-day physical
operations of White Cliffs, subject to the oversight and
supervision of PE-Pipeline, which will have final decision-
making authority.

The Debtors provided GECC and PE-Pipeline a detailed cash
budget for the period through Aug. 8, 2008, setting forth (i)
all costs that must be funded during the period for the
construction of the White Cliffs to continue in the ordinary
course, and (ii) all sources of cash available to the Debtors to
pay the interim project costs.

The Debtors will provide access to PE-Pipeline to books,
records, and other documents relating to White Cliffs.

                         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, Issue No. 4 and 5; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)


SEMGROUP LP: Pioneer Asserts US$30 Million Pre-Bankruptcy Claims
----------------------------------------------------------------
Pioneer Natural Resources Company said that it has approximately
US$30 million of unpaid pre-bankruptcy claims for condensate
sold to certain subsidiaries of SemGroup, L.P.

In July 2008, SemGroup, L.P. announced that it and certain of
its subsidiaries filed petitions for reorganization under
Chapter 11 of the U.S. Bankruptcy Code.

Pioneer is seeking payment of its pre-bankruptcy claim as a
critical supplier under a Supplier Protection Program created by
SemGroup and approved by the Bankruptcy Court on July 23.  The
intent of this program is for SemGroup to pay certain critical
suppliers their pre-bankruptcy claims in full and continue
paying such suppliers in exchange for their willingness to
continue performance.  It is premature at this time to predict
the timing of payments under this program.

The condensate supplied to SemGroup is produced from Pioneer's
West Panhandle gas field and is processed at Pioneer's Fain
plant in the Texas Panhandle. Pioneer continues to supply
condensate to SemGroup.  However, the company is monitoring
SemGroup's situation closely and will sell its condensate to
alternate purchasers should it become necessary to do so.

                           About Pioneer

Pioneer Natural Resources Company -- http://www.pxd.com/-- is a
large independent oil and gas exploration and production
company, headquartered in Dallas, with operations in the United
States, South Africa and Tunisia.

                         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, Issue No. 4; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)


SEMGROUP LP: U.S. Trustee Forms Seven-Member Creditors' Panel
-------------------------------------------------------------
Pursuant to Section 1102(a)(1) of the Bankruptcy Code, Roberta
A. DeAngelis, Acting United States Trustee for Region 3,
appointed seven members to the Official Committee of Unsecured
Creditors in the chapter 11 case of SemGroup, L.P., and its 24
debtor affiliates:

    1. Central Crude Corporation
       Attn: Charles B. Wilson
       PO Box 21110
       Wichita, Kansas 67208
       Tel: 316-337-8378
       Fax: 316-265-7372

    2. BP Oil Supply Company
       Attn: Daniel Rosen
       28301 Ferry Road
       Warrenville, Illinois 60555
       Tel: 630-836-4544
       Fax: 630-836-4600

    3. ConocoPhillips Company
       Attn: George A. Padilla
       600 North Dairy Ashford, CH 2116-B
       Houston, Texas 77079
       Tel: 281-293-6795
       Fax: 281-293-2690

    4. Crude Marketing & Transportation, Inc.
       Attn: Phillip M. Burch
       16 E. 16th Street, Ste. 300
       Tulsa, Oklahoma 74119
       Tel: 918-398-2715
       Fax: 918-584-4128

    5. HSBC Bank USA, National Association
       Attn: Sandra E. Horwitz
       452 Fifth Ave.
       New York, New York 10018
       Tel: 212-525-1358
       Fax: 212-525-1300

    6. Pacific Investment Management Company LLC
       Attn: David C. Flattum
       840 Newport Center Drive, Suite 100
       Newport Beach, California 92660
       Tel: 949-720-6000
       Fax: 949-720-6361

    7. Western Asset Management Company
       Attn: W. Stephen Venable, Jr.
       385 E. Colorado Blvd.
       Pasadena, California 91101
       Tel: 626-844-9400
       Fax: 626-844-4451

All of the members of the Creditors' Committee are listed in the
Debtors' Chapter 11 petition as one of their largest unsecured
trade creditors.  BP Oil, Central Crude, ConocoPhillips, and
Crude Marketing hold trade debts totaling more than
US$320,000,000
against the Debtors:

       BP Oil           US$159,004,586
       Central Crude        52,196,576
       ConocoPhillips       74,178,604
       Crude Marketing      40,841,569

HSBC Bank is the successor Indenture Trustee for the 8-3/4%
Senior Notes due 2015 issued by SemGroup, L.P., and SemGroup
Finance Corp.  PIMCO holds an US$86,000,000 bond debt against
the Debtors.  Western Asset holds a US$77,000,000 bond debt
against Debtors.

                         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, Issue No. 6; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)


SEMGROUP LP: Five Canadian Units File Separate CCAA Petitions
-------------------------------------------------------------
Affiliates of SemGroup L.P., SemCAMS ULC, and SemCanada Crude
Company filed petitions under the Companies' Creditors
Arrangement Act before the Court of Queen's Bench of Alberta,
Judicial District of Calgary.

Five other affiliates of the SemCAMS and SemCanada filed similar
CCAA petitions:

    * SemCanada Energy Company
    * A.E. Sharp, Ltd.
    * CEG Energy Options, Inc.
    * 319278 Nova Scotia Company
    * 1380331 Alberta ULC

The CCAA Applicants are represented by A. Robert Anderson, Q.C.,
Esq., at Blake, Cassels & Graydon LLP, in Calgary, Alberta.

                         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, Issue No. 6; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)


SEMGROUP LP: Monitor Provides Update on CCAA Proceedings
--------------------------------------------------------
Ernst & Young, Inc., the appointed monitor of SemCanada Crude
Company and affiliates' reorganization proceedings before the
Canadian Companies' Creditors Arrangement Act, reported that on
Aug. 5, 2008, SemCAMS ULC, SemCanada Crude Company, SemCanada
Energy Company, A.E. Sharp, Ltd., CEG Energy Options, Inc.,
319278 Nova Scotia Company, and 1380331 Alberta ULC, on the one
hand, and the Bank of Montreal, on the other hand, have reached
an agreement as to the use of deposits at the bank.

The Monitor also reported that the 319278 is seeking permission
from the CCAA Court to execute a shareholder resolution for the
sale of Wholesale Energy Group, ULC, to Universal Energy
Corporation.  319278 owns 75% of WEG.

According to the Monitor, WEG's book of business as of July 22,
2008, was negative because 319278 lost all of the contracted
natural gas purchase positions needed for the WEG retail sales.
WEG has limited cash on hand and does not have the financial
resources to contract for the required natural gas purchases to
lock down the book of business.  The Monitor said Universal's
offer for WEG is the best and highest offer received by 319278.

Universal's offer contemplates:

    -- payment of US$2,175,000 for WEG for its customer contracts
       plus the actual costs incurred by WEG for the supply of
       natural gas to WEG customer accounts for August;

    -- payment of US$375,000 to Lesley Green, WEG's sole
       director, for consulting fees;

    -- 319278's acquisition of the remaining 25% shareholding in
       WEG for US$1.00; and

    -- the transfer of certain office fixed assets to the the
       holder of the 25% shareholder interest in WEG.

                         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, Issue No. 6; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)



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

JETBLUE AIRWAYS: Teams With Western Union for Easy Cash Payment
---------------------------------------------------------------
JetBlue Airways Corporation has signed an agreement with The
Western Union Company that provides customers with an easy cash
payment option for purchasing flights when they book their
travel reservations via JetBlue's web site or 800-JETBLUE and
select the fast, reliable and convenient money transfer service.

Customers can now visit any participating Western Union(r) Agent
location following their booking to send a full payment of their
JetBlue reservation and Western Union service fee in cash.
Through a direct link to the low-fare, high-frills airline's
system, Western Union can confirm a JetBlue reservation until
midnight the following day.

?We are constantly looking for ways to simplify our booking and
payment process and enhance the customer experience,? said Don
Uselmann, Manager of Business Development for JetBlue Airways.
?Our relationship with Western Union is a great example of how
we can provide greater flexibility and more options for new
customers to choose JetBlue for their travel needs.  Paying with
cash has never been easier.?

?Millions of consumers already know how easy it is to pay their
bills using Western Union services,? said David Shapiro, senior
vice president of Western Union Payment Services.  ?Now JetBlue
customers will have the convenience of purchasing their airline
travel in cash at the places they already do business every day.
What could be simpler than paying for your travel while you
purchase groceries or fill up your gas tank??

Western Union is a leading provider of global money transfer
services, providing consumers with fast, reliable and convenient
ways to send and receive money around the world via a network of
Agent locations in more than 200 countries and territories.

                        About Western Union

The Western Union Company (NYSE:WU) --
http://www.westernunion.com/-- is a world leader in global
money transfer services.  Together with its affiliates, Orlandi
Valuta and Vigo, Western Union provides consumers with fast,
reliable and convenient ways to send and receive money around
the world, as well as send payments and purchase money orders.
Western Union and its affiliates operate through a network of
more than 345,000 Agent locations in over 200 countries and
territories.  Famous for its pioneering telegraph services, the
original Western Union dates back to 1851.

                       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.


MAXXAM INC: June 30 Balance Sheet Upside-Down by US$306.3 Mil.
--------------------------------------------------------------
MAXXAM Inc.'s consolidated balance sheet at June 30, 2008,
showed US$469.8 million in total assets and US$776.1 million in
total liabilities, resulting in a US$306.3 million stockholders'
deficit.

The company reported a net loss of US$12.7 million on sales of
US$23.3 million for the second quarter ended June 30, 2008,
compared to a net loss of US$6.7 million on sales of
US$23.3 million for the same period a year ago.

The company's results for the three and six months ended
June 30, 2008, were negatively impacted by a slowdown in the
real estate markets in which the company operates and impairment
charges related to its investment portfolio resulting from
issues in global credit and capital markets.

Included in net losses for the second quarter of 2008 is a
US$3.7 million impairment charge related to the company's
investment portfolio and a US$3.4 million benefit related to
stock-based compensation resulting from fluctuations in the
market price of the company's common stock.

For the first six months of 2008, MAXXAM reported a net loss of
US$26.6 million, compared to a net loss of US$19.0 million for
the same period of 2007.  Sales for the first six months of 2008
were US$45.0 million, compared to US$52.0 million for the first
six months of 2007, reflecting a downturn in the real estate
market.   The company's net loss for the six months ended
June 30, 2008, also reflects an aggregate US$5.5 million
impairment charge related primarily to the company's investments
in auction rate securities.

                       Real Estate Operations

Total real estate sales operating results declined for the three
months and six months ended June 30, 2008, as compared to the
same periods in 2007, primarily due to a reduction in lot sales
at the company's Fountain Hills project and an increase in the
deferral of revenues at its Mirada project.  The reduction of
lot sales at Fountain Hills is due primarily to decreased demand
and increased foreclosure rates, which increased the number of
available properties on the market, in the greater Phoenix area,
and the current credit crisis affecting the entire United
States.  As lots at Mirada are substantially sold out, the
company does not anticipate receiving significant future
revenues from the property.  Resort operations at the company's
Palmas development were negatively impacted by a general
economic recession in Puerto Rico.  Investment, interest and
other income reflects an impairment charge related to
investments in auction rate securities and lower earnings from
the company's real estate joint ventures.

                         Racing Operations

Net sales increased slightly for the company's racing operations
in the second quarter of 2008 as declines in wagering revenues
were offset by increased revenues resulting from the expanded
summer concert series at Sam Houston Race Park.  Operating
losses of US$2.7 million for the second quarter of 2008
increased from US$1.8 million in the prior year period,
principally due to increased operating expenses related to the
expanded summer concert series at Sam Houston Race Park.

                        Corporate and Other

The corporate segment's operating losses represent general and
administrative expenses that are not specifically attributable
to the company's operating segments.  The corporate segment's
operating losses improved US$1.8 million in the second quarter
of 2008, as compared to the prior year period, primarily due to
changes in stock-based compensation expense resulting from
fluctuations in the market price of the company's common stock.

Consolidated investment, interest and other income was a loss of
US$3.8 million in the second quarter of 2008, as compared to
income of US$1.2 million in the prior year period, primarily due
to impairment charges of US$5.5 million related to other than
temporary declines in the value of the Company's investment
portfolio.

                   Reorganization Proceedings of
              Palco and its Wholly Owned Subsidiaries

The Pacific Lumber Company (Palco) Palco and its five wholly
owned subsidiaries, including Scotia Pacific Company LLC
(Scopac), filed in January 2007separate voluntary petitions in
the United States Bankruptcy Court for the Southern District of
Texas for reorganization under Chapter 11 of the Bankruptcy
Code.

On July 8, 2008, the Court confirmed the MRC/Marathon Plan, a
plan of reorganization that had been filed by Palco's principal
creditor and a third party.   Following further bankruptcy and
appellate court proceedings, the MRC/Marathon Plan was
consummated on July 30, 2008.  Under the MRC/Marathon Plan, the
debtor companies were reorganized and continued under two new
companies, with substantial cash payments being made to all of
the creditor classes other than Palco's principal creditor.  The
consummation of the MRC/Marathon Plan resulted in the loss
entirely of the company's indirect equity interest in Palco and
its subsidiaries, including Scopac.  The company received cash
consideration of US$3.5 million at the time the MRC/Marathon
Plan was consummated.

Various parties have filed an appeal of the confirmation order
with the Fifth Circuit Court of Appeals.  It is possible that
the MRC/Marathon Plan could be overturned and unwound as a
result of the pending appeal.  Were that to occur, thecCompany
would be required to return US$2.25 million of the cash
consideration referred to above and the assumption of the Palco
pension plan by the reorganized entity would no longer be
effective.

The company will reevaluate the accounting treatment of its
investment in the Debtors in the third quarter of 2008.  The
company expects it will reverse all or a portion (depending on
the status of the appeal) of its investment in the Debtors,
including the related tax effects, in the third quarter of 2008.

                           Other Matters

In March 2008, the company purchased 687,480 shares of its
common stock from two affiliated institutional holders in a
privately negotiated transaction for an aggregate cost of
US$20.1 million.

Full-text copies of the company's consolidated financial
statements for the quarter ended June 30, 2008, are available
for free at http://researcharchives.com/t/s?309b

                         About MAXXAM Inc.

Headquartered in Houston, MAXXAM Inc. (AMEX: MXM) is a publicly-
traded company, with business interests in three industries:
forest products, real estate investment and development and
racing operations.  MAXXAM's top revenue source is Kaiser
Aluminum, which has been in Chapter 11 bankruptcy since 2002.
MAXXAM's timber subsidiary, Pacific Lumber, owns about 205,000
acres of old-growth redwood and Douglas fir timberlands in
Humboldt County, California.  MAXXAM's real estate interests
include commercial and residential properties in Arizona,
California, Texas, and Puerto Rico.  The company also owns the
Sam Houston Race Park, a horseracing track near Houston.  Its
chairperson and chief executive officer, Charles Hurwitz,
controls 77% of MAXXAM.

MAXXAM Inc.'s consolidated balance sheet at March 31, 2008,
showed US$483.5 million in total assets and US$779.6 million in
total liabilities, resulting in a US$296.1 million total
stockholders' deficit.

                        Going Concern Doubt

As reported in the Troubled Company Reporter on May 9, 2008,
Deloitte & Touche LLP, in Houston, expressed substantial doubt
about MAXXAM Inc.'s ability to continue as a going concern after
auditing the company's consolidated financial statements for the
year ended Dec. 31, 2007.

The auditing firm pointed to the uncertainty surrounding the
ultimate outcome of the separate voluntary petitions for
reorganization under Chapter 11 of the Bankruptcy Code filed by
certain of the company's wholly owned subsidiaries, and its
effect on the company, as well as the company's operating losses
at its remaining subsidiaries.



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

HINDU CREDIT: Clients Start Repaying Loans
------------------------------------------
The Trinidad and Tobago Express reports that Hindu Credit Union
Co-Operative Society Ltd.'s clients have begun repaying their
loans.

According to The Express, the clients started filing into Hindu
Credit's Chaguanas office and a branch of Republic Bank to repay
their loans.

The Express relates that Hindu Credit's provisional liquidator,
Ramdath Dave Rampersad, said he was still assessing how the
account opened at the Chaguanas branch had helped the clients
repay their loans.  According to The Express, Mr. Rampersad
denied that Hindu Credit was being liquidated.  He said that he
was following the terms of the court order to manage Hindu
Credit's affairs and investments and to maintain the value of
the assets, The Express states.

Headquartered in Borough, Chaguanas, Hindu Credit Union Co-
Operative Society Limited -- www.ourhcu.com -- reportedly has
between US$115.2 million and US$131.6 million in assets and a
total of US$32.9 million in liabilities.  It has 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: TTD200 Million Deal With CL Financial Fails
---------------------------------------------------------
The Trinidad and Tobago Express reports that Hindu Credit Union
Co-Operative Society Ltd.'s President Harry Harnarine said the
firm's deal with Lawrence Duprey's CL Financial conglomerate was
off when Mr. Duprey changed his mind about investing TTD200
million in the firm and offered insurance premium certificates
instead.

Mr. Harnarine told The Express in a telephone interview last
week that Mr. Duprey approached him in 2005 to discuss the
agreement with him and former Colonial Life Insurance Company
chief executive Claudius Dacon.  The Express relates that the
deal included measures to use Hindu Credit staff to sell Clico
premium insurance products.  The deal was called off when Mr.
Duprey offered TTD160 million in Clico premium insurance
certificates to Hindu Credit, The Express states, citing
Mr. Harnarine .

Mr. Duprey explained to The Express in an interview that CL
Financial withdrew from the deal as there were ?too many
financial holes to plug at? Hindu Credit.  The Express relates
that Mr. Harnarine denied this and said that while Hindu Credit
paid out millions to clients, it didn't have debts or ?financial
holes?.  The Express quoted Mr. Harnarine as saying, ?We felt
there was a need to replenish and increase liquidity and at the
meeting (with Duprey), a plan was put in place to divest and
sell off large HCU Group investments.?

The Express notes that CL Financial acquired several prime
properties of Hindu Credit as part of the deal, including:

           -- a medical center,
           -- a security firm,
           -- acres of land at Freeport, and
           -- a stake in HCU Money Express.

The properties were undervalued in CL Financial's favor and
another executive with connections to a CL Financial unit, was
appointed chairperson of the companies acquired, The Express
states, citing Mr. Harnarine.

Headquartered in Borough, Chaguanas, Hindu Credit Union Co-
Operative Society Limited -- www.ourhcu.com -- reportedly has
between US$115.2 million and US$131.6 million in assets and a
total of US$32.9 million in liabilities.  It has 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: Robin Montano Sues Harry Harnarine
------------------------------------------------
Attorney-at-law and former Opposition senator Robin Montano has
filed a lawsuit against Hindu Credit Union Co-Operative Society
Ltd.'s President Harry Harnarine, The Trinidad and Tobago
Express reports.

The Express relates that the complaint was filed by attorneys
Anand Ramlogan and Cindy Bhagwandeen on Mr. Montano's behalf.
According to the report, Mr. Montano was seeking for
compensation for slander committed against him during a program
on Hindu Credit's Radio Shakti 97.5FM, where he was a guest, on
May 30, 2008.

According to The Express, Mr. Ramlogan is also representing more
than 50 Hindu Credit depositors who are threatening to sue
Commissioner for Co-operative Development, Charles Mitchell, for
failure to intervene before the firm's collapse.

The Express notes that Mr. Ramlogan wrote to Mr. Mitchell,
accusing him of breaking his ?statutory duty by failing to act
in the best interest of the depositors, despite several warning
signals of the impending insolvency?.

Unexplained large-scale acquisition of properties and
diversification and expansion of Hindu Credit into ?the
mysterious Hindu Credit Union Group of Companies? should have
concerned Mr. Mitchell's office, The Express says, citing Mr.
Ramlogan.  ?The fact that the HCUCS [Hindu Credit Union]
continued to issue fixed deposit certificates in the name of the
Hindu Credit Union Limited, despite a letter from you forbidding
it to do so, is further evidence of negligence on your part, as
nothing was done to stop this fraudulent misrepresentation and
deceit from continuing,? The Express quoted Mr. Ramlogan as
saying.

Headquartered in Borough, Chaguanas, Hindu Credit Union Co-
Operative Society Limited -- www.ourhcu.com -- reportedly has
between US$115.2 million and US$131.6 million in assets and a
total of US$32.9 million in liabilities.  It has 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.



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

NORTHWEST AIRLINES: Obtains Clearance from European Commission
--------------------------------------------------------------
Delta Air Lines, Inc. and Northwest Airlines Corporation
received, on Aug. 6, 2008, unconditional clearance from the
European Commission on the airlines' proposed merger.

The Commission, which is the regulatory arm of the European
Union, noted that its investigation found the proposed
transaction ?would not impede effective competition in Europe or
the trans-Atlantic?.

The airlines only offer overlapping direct service between
Amsterdam-Atlanta, Amsterdam-New York and Paris-Detroit, and
talks with competitors and customers did not flag antitrust
problems on these routes, the Commission said, according to The
Associated Press.

Both Delta and Northwest are part of the SkyTeam alliance,
sharing flights with Air France, KLM, Alitalia and Continental
Airlines, among others.  Delta flies to 119 international
destinations including 32 cities in the EU territory, reports
the AP.

?Approval from the European Commission for the merger is another
important step toward completing our pro-competitive merger with
Northwest. . . which will offer greater access to destinations
across the globe,? Delta's chief executive officer Richard
Anderson said in a statement posted on Delta's Web site.

?We continue to work closely with the U.S. Department of Justice
and remain confident that we will be able to finalize the merger
by the end of the year,? Mr. Anderson added.

           NWA Union Officials Testify Before Lawmakers
               on Proposed Delta-Northwest Merger

In a hearing in Washington on July 30, 2008, before the Health,
Employment, Labor, and Pensions subcommittee of the U.S. House
of Representatives, unions representing Northwest's flight
attendants, ramp workers and reservation agents pointed out that
Delta's buyout plan for Northwest threatens pension benefits for
employees, the AP reports.

Northwest employees have not received assurances that their
pension benefits would be protected upon the closing of the
planned merger, said Robert Roach, general vice president of the
International Association of Machinists on behalf of Northwest's
labor force, reports the AP.

?The ill-advised Delta-Northwest merger will jeopardize
everything [the Northwest employees] have worked for while
destroying two once-great airlines and threatening the solvency
of our nation's pension insurance agency,? Mr. Roach said,
according to the Atlanta-Journal Constitution.

Mr. Roach argued that the combined airline should not be allowed
to ?dump their garbage? on the Pension Benefit Guaranty Corp.,
the government-created corporation that takes over pension plans
for bankrupt companies, says AJC.

Forcing the frozen pension plans unto PBGC will mean an added
US$15,600,000,000 in liabilities on top of its US$13,100,000,000
deficit for fiscal year 2007, AJC reports, quoting Mr. Roach.

In response, Rob Kight, Delta's vice president for Compensation,
Benefits and Services, told the Subcommittee that Delta intends
to maintain its pension plans and Northwest's that were frozen
in the Chapter 11 cases.

The Delta-Northwest combination is about ?addition, not
subtraction,? hence it will mean ?a stronger company? that will
be better able to fund pensions going forward, Mr. Kight said,
according to AJC.

Subsequent to testifying before lawmakers, IAM released a press
statement dated July 30, reiterating that the Delta-NWA merger
could possibly jeopardize workers' pensions and the stability of
the government's pension insurance system, a complete copy of
which is available for free at http://www.goiam.org/mergers

                   Delta FAs are Not Unionized,
                        AFA-CWA Worries

On behalf of Northwest's flight attendants, the Association of
Flight Attendants-CWA international president Patricia Friend,
noted that Delta flight attendants are not currently represented
by a union, according to the AP.

Ms. Friend also accused Delta management of interfering with an
attempt by some of its flight attendants to unionize.

As previously reported, eligible Delta flight attendants voted
to become unionized from April 23 through June 3, 2008; however,
more than 60% of them rejected AFA's representation, according
to results from the National Mediation Board.

The AFA-CWA filed on June 6, 2008, formal interference charges
with the NMB against Delta management, alleging illegal conduct
during the recent flight attendant representation election.

?This merger should not be permitted to be a vehicle for union
busting,? Ms. Friend told lawmakers during the hearing, says the
AP.

According to Ms. Friend, Delta ?will do everything in their
power to first make sure there is no union in place to protect
the hard-earned benefits of the currently unionized Northwest
flight attendants,? AJC reports.

Ms. Friend urged the members of the Committee to remember that
?the hundreds of thousands of airline employees across the
country have the most to lose and with the least protection?.

                Delta President: Delta-NWA Merger
                 to Produce US$2-Bil. in Savings

In an interview with The Street.com, Delta President Ed Bastian
said that he believes that Delta's planned merger with Northwest
will produce US$2,000,000,000 in savings and benefits, up from
an original estimate of US$1,200,000,000 and will cost about
US$600,000,000, down from the US$1,000,000,000, which the
Company previously projected.

?Now that we've had an opportunity to do more detailed work,
we've been able to validate the synergies we thought were there,
but had a difficult time quantifying,? Mr. Bastian said in the
interview.

The updated evaluation means that the combined Company could
possibly gain back US$500,000,000 in 2009, and another
US$500,000,000 to US$600,000,000 annually until 2012.

Upon the closing of the merger, Delta will become the operator
of not less than 700 regional jets, which comprises
approximately 40% of U.S.' regional jet fleet, The Street.com
notes.

The airline will also get more than US$100,000,000 in improved
efficiencies in airport operations due to lessened leases in
costly facilities, including, among others, the Los Angeles
International Airport, the report adds.

      Delta CEO Aims for ?Quick Integration? with Northwest

Delta intends to file for a single operating certificate with
the Federal Aviation Administration by the end of August 2008,
in connection with its planned merger with Northwest,
Marketwatch reports.

Mr. Anderson said in a CNBC interview that Delta plans to take
Northwest as a subsidiary during the first 18 months after the
merger is completed.

Delta intends to fold Northwest's operations into Delta ?as
quickly as we can?, Mr. Anderson told CNBC, says the report.

Mr. Anderson also noted that negotiations ?are still at pace?
with respect to discussions on antitrust issues with U.S.
congressional panels, as well as The Department of Justice for
final approval.

                    Delta and Northwest Face
            Antitrust Trial Over Merger in November

As previously reported, a group of 28 airline passengers from 10
states filed a lawsuit in the U.S. District Court for the
Northern District of California to halt Delta Airlines, Inc.'s
proposed takeover of Northwest Airlines Corporation.

U.S. District Court Judge Vaughn Walker scheduled in San
Francisco, on Nov. 5, 2008, the trial over claims that the
Delta-Northwest merger violates antitrust laws, Bloomberg News
reports.

Northwest and Delta executives are expected to testify at the
trial, USA Today says.

According to Bloomberg News, the lawsuit, captioned Rosemary
D'Augusta v. Northwest Airlines, allege that the proposed Delta-
Northwest merger ?would result in an illegal monopoly?,
controlling, among others, 24% of domestic flights.

The lawsuit also alleges that ?higher ticket prices and
diminished service? will result if federal regulators approve
the deal, says the report.

Delta and Northwest have said the combined Company would have
the the most flights worldwide, providing access to more than
390 destinations in 67 countries.

                           About Delta Air

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

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

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

                      About Northwest Airlines

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

The company and 12 affiliates filed for chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930).  Bruce
R. Zirinsky, Esq., and Gregory M. Petrick, Esq., at Cadwalader,
Wickersham & Taft LLP in New York, and Mark C. Ellenberg, Esq.,
at Cadwalader, Wickersham & Taft LLP in Washington, represent
the Debtors in their restructuring efforts.  The Official
Committee of Unsecured Creditors has retained Scott L. Hazan,
Esq., at Otterbourg, Steindler, Houston & Rosen, P.C. as its
bankruptcy counsel in the Debtors' chapter 11 cases.  When the
Debtors filed for bankruptcy, they listed US$14.4 billion in
total assets and US$17.9 billion in total debts.  On Jan. 12,
2007, the Debtors filed with the Court their chapter 11 plan.
On Feb. 15, 2007, the Debtors filed an amended plan and
disclosure statement.  The Court approved the adequacy of the
Debtors' amended disclosure statement on March 26, 2007.  On
May 21, 2007, the Court confirmed the Debtors' amended plan.
That amended plan took effect May 31, 2007.

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

                            *     *     *

As reported in the Troubled Company Reporter-Latin America on
July 30, 2008, Standard & Poor's Ratings Services lowered its
ratings on Northwest Airlines Corp. and subsidiary Northwest
Airlines Inc. (both rated B/Negative/--), including lowering the
long-term corporate credit ratings on both entities to 'B' from
'B+', and removed the ratings from CreditWatch, where they had
been placed with negative implications April 15, 2008.  S&P said
the outlook is negative.

The downgrade reflects expected losses and reduced or negative
operating cash flow caused by high fuel prices.  S&P also
lowered its ratings on enhanced equipment trust certificates, in
some cases by more than one notch.


NORTHWEST AIRLINES: Meeting to Vote on Delta Merger Set Sept. 25
----------------------------------------------------------------
In a joint prospectus filed with the U.S. Securities and
Exchange Commission, dated Aug. 6, 2008, Delta Air Lines, Inc.,
and Northwest Airlines Corporation notify their stockholders of
separate special meetings, that will simultaneously take place
on Sept. 25, 2008.

Essentially, during their Special Meetings, Delta and Northwest
stockholders will consider and vote on a proposal to adopt the
Agreement and Plan of Merger, dated as of April 14, 2008, by and
among Delta Air Lines, Inc., Nautilus Merger Corporation, a
direct, wholly-owned subsidiary of Delta, and Northwest.

                   Northwest's Special Meeting

Northwest's Special Meeting at 9:30 a.m., Eastern Time, will be
held in the AXA Equitable Center's Auditorium located at 787
Seventh Avenue, New York, according to Northwest CEO Douglas M.
Steenland.

Northwest's stockholders will, among other things:

    * elect 12 directors to hold office until the 2009 Annual
      Meeting of Stockholders;

    * ratify the appointment of Ernst & Young LLP as Northwest's
      independent registered public accounting firm for 2008;

    * to approve an amendment to the Northwest Airlines Corp.
      2007 Stock Incentive Plan; and

    * approve the adjournment of the Northwest Annual Meeting, if
      necessary or appropriate, to solicit additional proxies if
      there are not sufficient votes to approve the Merger and
      its Agreement.

According to Mr. Steenland, the Northwest board of directors has
fixed July 31, 2008, as the record date for determination of the
Northwest stockholders entitled to receive notice of, and to
vote at, the Northwest Annual Meeting.

The joint proxy statement or prospectus and the Northwest 2007
Annual Report are available at http://www.proxyvote.com

A full-text copy of Delta and Northwest's joint prospectus on
Form S-4 is available at no charge at:

               http://ResearchArchives.com/t/s?30b1

          Northwest Files Transcript of Conference Call

In a separate filing on Form 425 with the SEC dated July 24,
2008, Northwest disclosed the transcript of their Conference
Call held on July 23, with participating analysts Ray Neidl of
Calyon Securities, Gary Chase of Lehman Brothers, Jamie Baker of
JPMorgan, William Greene of Morgan Stanley and Daniel McKenzie
of Credit Suisse.

Northwest's Corporate participants included Doug Steenland;
Andrew Roberts, executive vice president for Operations; Dave
Davis, chief financial officer, Tim Griffin, EVP for Marketing
and Distribution; and Andrew Lacko, Director IR.

Among other things, Northwest tackled the planned merger with
Delta, which, according to Mr. Steenland ?makes even more sense
now given the continued run up in fuel prices than it did when
we entered into the merger agreement in April [2008]?.

Mr. Steenland added that ?significant work is already under way?
to realize the synergies of the Merger, including, among others:

    -- Delta and Northwest's joint formation of 26 integration
       planning teams comprised of leaders from both companies
       for smooth integration of operations;

    -- an unprecedented pre-merger collective bargaining
       agreement reached with Delta and Northwest pilot groups
       that includes a process to achieve full seniority list
       integration upon closing of the merger, subject to
       membership ratification and expected to be realized in
       August;

    -- Northwest and Delta's special meetings to be held on
       Sept. 25, 2008, for shareholders to vote for the approval
       of the merger; and

    -- announcement of key executives that will lead the combined
       company.

Mr. Steenland added that the merger-related synergies have been
estimated to be US$2,000,000,000 on an annualized steady basis.

?We continue to expect the closing in the fourth quarter of
2008,? Mr. Steenland said.

Mr. Davis reported that for the second quarter of 2008,
Northwest incurred a net loss of US$377,000,000.  However,
operating revenues for the second quarter were US$3,600,000,000,
up 12.4% from 2007, he says.

The Participants also tackled, among other things, the impact of
fuel costs to Northwest, the airline's capacity cuts and number
of regional jets.

A full-text copy of the Northwest Conference Call Transcript is
available for free at http://ResearchArchives.com/t/s?30b0

                    Delta's Special Meeting

According to Delta Chief Executive Officer Richard H. Anderson,
Delta's Special Meeting will be held at 2:00 p.m., at the
Georgia International Convention Center Concourse, College Park
in Georgia, where Delta stockholders will vote on:

    * a proposal to approve an amendment to the Delta 2007
      Performance Compensation Plan to increase the number of
      shares of Delta Common Stock issuable by a number of shares
      equal to 15% of Delta's outstanding equity capitalization,
      determined on a fully-diluted basis at the closing of the
      Merger; and

    * an adjournment of the Special Meeting, if necessary or
      appropriate, to solicit additional proxies if there are not
      sufficient votes to approve the Proposals.

The issuance of Delta common stock to Northwest stockholders in
the merger and the amendment to the Delta 2007 Performance
Compensation Plan require the affirmative vote of holders of a
majority of the shares of Delta common stock, according to the
SEC filing.

In connection with the Merger, Delta intends to issue to
substantially all employees of the combined Company, equity
equal to approximately 13.38% of Delta's outstanding equity
capitalization, determined on a fully-diluted basis at the
closing of the Merger.

Delta says its board of directors believes the employees of the
combined Company should receive equity to recognize their
critical role in assisting it to (i) achieve its financial,
operational and customer service goals, (ii) more closely align
their interests with stockholders, and (iii) increase their
stake in the combined Company's financial performance.

The amendment to the Delta 2007 Performance Compensation Plan is
intended to permit Delta to implement the employee equity
issuance and allow for other equity grants after the closing of
the merger, the SEC filing disclosed.

Delta has fixed the close of business on July 29, 2008, as the
record date for determination of the Delta stockholders entitled
to receive notice of, and to vote at, the Delta Special Meeting.

                           About Delta Air

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

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

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

                      About Northwest Airlines

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

The company and 12 affiliates filed for chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930).  Bruce
R. Zirinsky, Esq., and Gregory M. Petrick, Esq., at Cadwalader,
Wickersham & Taft LLP in New York, and Mark C. Ellenberg, Esq.,
at Cadwalader, Wickersham & Taft LLP in Washington, represent
the Debtors in their restructuring efforts.  The Official
Committee of Unsecured Creditors has retained Scott L. Hazan,
Esq., at Otterbourg, Steindler, Houston & Rosen, P.C. as its
bankruptcy counsel in the Debtors' chapter 11 cases.  When the
Debtors filed for bankruptcy, they listed US$14.4 billion in
total assets and US$17.9 billion in total debts.  On Jan. 12,
2007, the Debtors filed with the Court their chapter 11 plan.
On Feb. 15, 2007, the Debtors filed an amended plan and
disclosure statement.  The Court approved the adequacy of the
Debtors' amended disclosure statement on March 26, 2007.  On
May 21, 2007, the Court confirmed the Debtors' amended plan.
That amended plan took effect May 31, 2007.

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

                            *     *     *

As reported in the Troubled Company Reporter-Latin America on
July 30, 2008, Standard & Poor's Ratings Services lowered its
ratings on Northwest Airlines Corp. and subsidiary Northwest
Airlines Inc. (both rated B/Negative/--), including lowering the
long-term corporate credit ratings on both entities to 'B' from
'B+', and removed the ratings from CreditWatch, where they had
been placed with negative implications April 15, 2008.  The
outlook is negative.

The downgrade reflects expected losses and reduced or negative
operating cash flow caused by high fuel prices.  S&P also
lowered its ratings on enhanced equipment trust certificates, in
some cases by more than one notch.


PETROLEOS DE VENEZUELA: Gets Share on Ventures; Gas Projects
------------------------------------------------------------
Venezuelan President Hugo Chavez, as part of a wider set of
reforms for his country, has decreed changes to the statutes of
state-owned Petroleos de Venezuela SA, Oil & Gas Journal
reports.

The report says, citing the Official Gazette, that Mr. Chavez
has given PDVSA the responsibility of "participating in ventures
intended for the sustained, organic, and integral development of
the country, including agricultural [and] industrial
activities."

According to the report, the changes, which purportedly aim at
integrating the oil and gas industry more closely with other
sectors of the national economy, also free members of the PDVSA
board to actively participate in political activities?subject to
Mr. Chavez's approval.

The report relates that the new decree is in line with similar
efforts by Mr. Chavez last year to expand the role of the state
oil company.  At the time, PDVSA created a series of units that
included a construction company and an agricultural business
unit, among others.

The decree is part of 26 new laws approved by Mr. Chavez last
Thursday, when the 18-month decree powers bestowed on him by
Congress were set to expire, the Oil & Gas Journal says.  The
powers enabled Mr. Chavez to issue decrees without any input
from the legislature.

The TCR-LA reported on Aug. 12, 2008, that PDVSA was mandated to
control at least 60% of JVs formed with private oil companies,
and more than 40% stakes in natural gas projects.

Petroleos de Venezuela S.A. -- http://www.pdvsa.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad.  The company has a commercial office in China.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
April 28, 2008, Standard & Poor's Ratings Services affirmed its
'BB-' long-term corporate credit rating on Petroleos de
Venezuela S.A.  S&P said the outlook is stable.

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

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


* Upcoming Meetings, Conferences and Seminars
---------------------------------------------

Aug. 14, 2008
    TURNAROUND MANAGEMENT ASSOCIATION
       Nassau vs. Suffolk Softball Game
          Eisenhower Park, East Meadow, New York
             Contact: 631-251-6296 or www.turnaround.org

Aug. 14, 2008
    TURNAROUND MANAGEMENT ASSOCIATION
       Social & Networking Meeting
          CityPlace Center, Dallas, Texas
             Contact: 972-906-9436 or www.turnaround.org

Aug. 15, 2008
    TURNAROUND MANAGEMENT ASSOCIATION
       Family Night Baseball
          TBD, New Jersey
             Contact: 908-575-7333 or www.turnaround.org

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

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

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

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

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

Aug. 27-28, 2008
    TURNAROUND MANAGEMENT ASSOCIATION
       TMA 4th Annual Northeast Regional Conference
          Gideon Putnam Resort & Spa, Saratoga Springs, New York
             Contact: www.turnaround.org

Aug. 28, 2008
    TURNAROUND MANAGEMENT ASSOCIATION
       Arizona Chapter Mixer
          TBD, Phoenix, Arizona
             Contact: 623-581-3597 or www.turnaround.org

Sept. 10, 2008
    TURNAROUND MANAGEMENT ASSOCIATION
       Networking Breakfast
          Marriott, Bridgewater, New Jersey
             Contact: 908-575-7333 or www.turnaround.org

Sept. 10, 2008
    TURNAROUND MANAGEMENT ASSOCIATION
       Dallas / Fort Worth Restructuring Workshop
          Belo Mansion Dallas, Texas
             Contact: www.turnaround.org

Sept. 11, 2008
    TURNAROUND MANAGEMENT ASSOCIATION
       Lenders Forum
          TBD, Long Island, New York
             Contact: www.turnaround.org

Sept. 11-12, 2008
    TURNAROUND MANAGEMENT ASSOCIATION
       TMA Mid-America Regional Conference
          Oak Brook Hills Marriott Resort, Oak Brook, Illinois
             Contact: www.turnaround.org

Sept. 11-14, 2008
    TURNAROUND MANAGEMENT ASSOCIATION
       Cross Border Conference
          Grand Okanagan Resort, Kelowna, British Columbia
             Contact: www.turnaround.org

Sept. 12, 2008
    AMERICAN BANKRUPTCY INSTITUTE
       ABI/GULC Views from the Bench
          Georgetown University Law Center, Washington, DC
             Contact: 1-703-739-0800; http://www.abiworld.org/

Sept. 16-18, 2008
    ASSOCIATION OF INSOLVENCY &RESTRUCTURING ADVISORS
       2nd Annual Restructuring & Investing Conference
          Shanghai, China
             Contact: http://www.airacira.org/

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

Sept. 18, 2008
    TURNAROUND MANAGEMENT ASSOCIATION
       Joint Event - CFA/IWIRC/RMA/NJTMA/NYIC
       Maplewood Country Club, Maplewood, New Jersey
             Contact: 908-575-7333 or www.turnaround.org

Sept. 18, 2008
    TURNAROUND MANAGEMENT ASSOCIATION
       Chapter Lunch Program
          Nashville City Center, Nashville, Tennessee
             Contact: 615-850-8678 or www.turnaround.org

Sept. 18, 2008
    TURNAROUND MANAGEMENT ASSOCIATION
       Healthcare Industry Update - Panel Discussion
          Summit Club, Birmingham, Alabama
             Contact: www.turnaround.org

Sept. 18, 2008
    TURNAROUND MANAGEMENT ASSOCIATION
       Effective Turnarounds: A View From US Trustees
          TBA, Syracuse, New York
             Contact: www.turnaround.org

Sept. 18-19, 2008
    AMERICAN CONFERENCE INSTITUTE
       Advanced Insolvency Law and Practice Conference
          Paris, France
             Contact: www.americanconference.com

Sept. 24, 2008
    TURNAROUND MANAGEMENT ASSOCIATION
       13 Week Cash Flow Workshop: An Overview
          McCormick & Schmick's, Las Vegas, Nevada
             Contact: www.turnaround.org

Sept. 24-25, 2008
    TURNAROUND MANAGEMENT ASSOCIATION
       TMA Florida Annual Golf Tournament
          Champions Gate Golf Club, Orlando, Florida
             Contact: 561-882-1331 or www.turnaround.org

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

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

Sept. 25, 2008
    TURNAROUND MANAGEMENT ASSOCIATION
       Case Study with Tom Kim, TMA Small Business of the Year
          Turnaround Award - TMA Arizona Chapter Meeting
             TBD, Phoenix, Arizona
                Contact: www.turnaround.org

Sept. 26, 2008
    AMERICAN BANKRUPTCY INSTITUTE
       NCBJ/ABI Educational Program
          Marriott Desert Ridge, Scottsdale, Arizona
             Contact: 1-703-739-0800; http://www.abiworld.org/

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

Oct. 3, 2008
    AMERICAN BANKRUPTCY INSTITUTE
       ABI/UMKC Midwestern Bankruptcy Institute
          H. Roe Bartle Hall Convention Center, Kansas City
             Contact: 1-703-739-0800; http://www.abiworld.org/

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

Oct. 13, 2008
    AMERICAN BANKRUPTCY INSTITUTE
       Consumer Bankruptcy Conference
          Standard Club, Chicago, Illinois
             Contact: 1-703-739-0800; http://www.abiworld.org/

Oct. 14, 2008
    TURNAROUND MANAGEMENT ASSOCIATION
       Annual Charity Golf Event
          Forest Park Golf Course, St. Louis, Missouri
             Contact: www.turnaround.org

Oct. 16, 2008
    TURNAROUND MANAGEMENT ASSOCIATION
       Billiards Networking Night
          Herbert's Billiards, Secaucus, New Jersey
             Contact: 908-575-7333 or www.turnaround.org

Oct. 16, 2008
    TURNAROUND MANAGEMENT ASSOCIATION
       LI-TMA Member Social
          Davenport Press, Mineola, New York
             Contact: 631-251-6296 or www.turnaround.org

Oct. 16, 2008
    TURNAROUND MANAGEMENT ASSOCIATION
       Breakfast Meeting
          TBD, Calgary, Alberta
             Contact: 503-768-4299 or www.turnaround.org

Oct. 16, 2008
    TURNAROUND MANAGEMENT ASSOCIATION
       View from the Bench - Bankruptcy Update
          Summit Club, Birmingham, Alabama
             Contact: www.turnaround.org

Oct. 16, 2008
    TURNAROUND MANAGEMENT ASSOCIATION
       How to Contract with a Turnaround Manager
          University Club, Portland, Oregon
             Contact: www.turnaround.org

Oct. 22, 2008
    TURNAROUND MANAGEMENT ASSOCIATION
       Turnaround Nevada Award Night
          McCormick & Schmick's, Las Vegas, Nevada
             Contact: www.turnaround.org

Oct. 23, 2008
    TURNAROUND MANAGEMENT ASSOCIATION
       TMA Arizona Chapter Meeting - Election Oriented
          TBD, Phoenix, Arizona
             Contact: www.turnaround.org

Oct. 23, 2008
    TURNAROUND MANAGEMENT ASSOCIATION
       Effective Turnarounds: A Panel of Professionals
          TBA, Rochester, New York
             Contact: www.turnaround.org

Oct. 23-24, 2008
    AMERICAN CONFERENCE INSTITUTE
       Distressed Assets Boot Camp
          TBD, London, United Kingdom
             Contact: www.americanconference.com

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

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

Oct. 29-30, 2008
    TURNAROUND MANAGEMENT ASSOCIATION
       TMA Corporate Governance Meetings
          Marriott, New Orleans, Louisiana
             Contact: www.turnaround.org

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

Oct. 31, 2008
    AMERICAN BANKRUPTCY INSTITUTE
       International Insolvency Symposium
          Hilton, Frankfurt, Germany
             Contact: 1-703-739-0800; http://www.abiworld.org/

Nov. 6, 2008
    TURNAROUND MANAGEMENT ASSOCIATION
       Networking Breakfast
          Coach House Diner & Restaurant, Hackensack, New Jersey
             Contact: 908-575-7333 or www.turnaround.org

Nov. 11, 2008
    AMERICAN BANKRUPTCY INSTITUTE
       Detroit Consumer Bankruptcy Conference
          Marriott, Troy, Michigan
             Contact: 1-703-739-0800; http://www.abiworld.org/

Nov. 13, 2008
    TURNAROUND MANAGEMENT ASSOCIATION
       Turnaround Case Study
          Summit Club, Birmingham, Alabama
             Contact: www.turnaround.org

Nov. 13, 2008
    TURNAROUND MANAGEMENT ASSOCIATION
       Effective Turnarounds:A View From Workout Consultants
          TBA, Buffalo, New York
             Contact: www.turnaround.org

Nov. 13, 2008
    TURNAROUND MANAGEMENT ASSOCIATION
       LI-TMA Social
          TBD, Melville, New York
             Contact: 631-251-6296 or www.turnaround.org

Nov. 13, 2008
    TURNAROUND MANAGEMENT ASSOCIATION
       Dinner Meeting
          TBD, Calgary, Alberta
             Contact: 503-768-4299 or www.turnaround.org

Nov. 19, 2008
    TURNAROUND MANAGEMENT ASSOCIATION
       Special Program
          Tournament Players Club at Jasna Polana, New Jersey
             Contact: 908-575-7333 or www.turnaround.org

Nov. 19, 2008
    TURNAROUND MANAGEMENT ASSOCIATION
       Interaction Between Professionals in a
Restructuring/Bankruptcy
          Bankers Club, Miami, Florida
             Contact: 312-578-6900; http://www.turnaround.org/

Nov. 20, 2008
    TURNAROUND MANAGEMENT ASSOCIATION
       Senior Housing & Long Term Care
          Washington Athletic Club,Seattle, Washington
             Contact: www.turnaround.org

Nov. 27, 2008
    TURNAROUND MANAGEMENT ASSOCIATION
       TMA Arizona Chapter Meeting - Chris Kaup
          TBD, Phoenix, Arizona
             Contact: www.turnaround.org

Dec. 3, 2008
    TURNAROUND MANAGEMENT ASSOCIATION
       Holiday Party
          McCormick & Schmick's, Las Vegas, Nevada
             Contact: 702-952-2480 or www.turnaround.org

Dec. 3, 2008
    TURNAROUND MANAGEMENT ASSOCIATION
       Christmas Function
          Terminal City Club, Vancouver, British Columbia
             Contact: 503-768-4299 or www.turnaround.org

Dec. 3-5, 2008
    AMERICAN BANKRUPTCY INSTITUTE
       20th Annual Winter Leadership Conference
          Westin La Paloma Resort & Spa
             Tucson, Arizona
                Contact: http://www.abiworld.org/

Dec. 8, 2008
    TURNAROUND MANAGEMENT ASSOCIATION
       Holiday Gathering
          TBD, Long Island, New York
             Contact: 631-251-6296 or www.turnaround.org

Dec. 9, 2008
    TURNAROUND MANAGEMENT ASSOCIATION
       Holiday MIxer
          Washington Athletic Club, Seattle, Washington
             Contact: 503-768-4299 or www.turnaround.org

Dec. 11, 2008
    TURNAROUND MANAGEMENT ASSOCIATION
       Holiday MIxer
          University Club, Portland, Oregon
             Contact: 503-768-4299 or www.turnaround.org

Dec. 18, 2008
    TURNAROUND MANAGEMENT ASSOCIATION
       Holiday MIxer
          TBD, Phoenix, Arizona
             Contact: 623-581-3597 or www.turnaround.org

Dec. 31, 2008
    TURNAROUND MANAGEMENT ASSOCIATION
       Sponsorships - Annual Golf Outing, Various Events
          TBA, New Jersey
             Contact: 908-575-7333 or www.turnaround.org

Jan. 21-22, 2009
    TURNAROUND MANAGEMENT ASSOCIATION
       Corporate Governance Meetings
          Bellagio, Las Vegas, Nevada
             Contact: www.turnaround.org

Jan. 22-23, 2009
    TURNAROUND MANAGEMENT ASSOCIATION
       Distressed Investing Conference
          Bellagio, Las Vegas, Nevada
             Contact: www.turnaround.org

Jan. 22-23, 2009
    AMERICAN BANKRUPTCY INSTITUTE
       Rocky Mountain Bankruptcy Conference
          Westin Tabor Center, Denver, Colorado
             Contact: 1-703-739-0800; http://www.abiworld.org/

Feb. 5-7, 2009
    AMERICAN BANKRUPTCY INSTITUTE
       Caribbean Insolvency Symposium
          Westin Casurina, Grand Cayman Island, AL
             Contact: 1-703-739-0800; http://www.abiworld.org/

Feb. 25-27, 2009
    AMERICAN BANKRUPTCY INSTITUTE
       Valcon
          Four Seasons, Las Vegas, Nevada
             Contact: 1-703-739-0800; http://www.abiworld.org/

Mar. 13, 2009
    AMERICAN BANKRUPTCY INSTITUTE
       Bankruptcy Battleground West
          Beverly Wilshire, Beverly Hills, California
             Contact: 1-703-739-0800; http://www.abiworld.org/

Apr. 17-18, 2009
    NATIONAL ASSOCIATION OFBANKRUPTCY TRUSTEES
       NABT Spring Seminar
          The Peabody, Orlando, Florida
             Contact: http://www.nabt.com/

Apr. 20, 2009
    AMERICAN BANKRUPTCY INSTITUTE
       Consumer Bankruptcy Conference
          John Adams Courthouse, Boston, Massachusetts
             Contact: 1-703-739-0800; http://www.abiworld.org/

Apr. 27-28, 2009
    TURNAROUND MANAGEMENT ASSOCIATION
       Corporate Governance Meetings
          Intercontinental Hotel, Chicago, Illinois
             Contact: www.turnaround.org

Apr. 28-30, 2009
    TURNAROUND MANAGEMENT ASSOCIATION
       TMA Spring Conference
          Intercontinental Hotel, Chicago, Illinois
             Contact: www.turnaround.org

May 7-10, 2009
    AMERICAN BANKRUPTCY INSTITUTE
       27th Annual Spring Meeting
          Gaylord National Resort & Convention Center
             National Harbor, Maryland
                Contact: http://www.abiworld.org/

May 14-16, 2009
    ALI-ABA
       Chapter 11 Business Reorganizations
          Langham Hotel, Boston, Massachusetts
             Contact: http://www.ali-aba.org

June 11-13, 2009
    AMERICAN BANKRUPTCY INSTITUTE
       Central States Bankruptcy Workshop
          Grand Traverse Resort and Spa
             Traverse City, Michigan
                Contact: http://www.abiworld.org/

June 21-24, 2009
    INTERNATIONAL ASSOCIATION OF RESTRUCTURING, INSOLVENCY &
       BANKRUPTCY PROFESSIONALS
          8th International World Congress
             TBA
                Contact: http://www.insol.org/

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

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

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

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

Apr. 15-18, 2010
    AMERICAN BANKRUPTCY INSTITUTE
       Annual Spring Meeting
          Gaylord National Resort & Convention Center, Maryland
             Contact: 1-703-739-0800; http://www.abiworld.org/

June 17-20, 2010
    AMERICAN BANKRUPTCY INSTITUTE
       Central States Bankruptcy Workshop
          Grand Traverse Resort and Spa, Traverse City, Michigan
             Contact: 1-703-739-0800; http://www.abiworld.org/

July 7-10, 2010
    AMERICAN BANKRUPTCY INSTITUTE
       Northeast Bankruptcy Conference
          Ocean Edge Resort, Brewster, Massachusetts
             Contact: 1-703-739-0800; http://www.abiworld.org/

Aug. 5-7, 2010
    AMERICAN BANKRUPTCY INSTITUTE
       Mid-Atlantic Bankruptcy Workshop
          Hyatt Regency Chesapeake Bay, Cambridge, Maryland
             Contact: 1-703-739-0800; http://www.abiworld.org/

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

Dec. 2-4, 2010
    AMERICAN BANKRUPTCY INSTITUTE
       Winter Leadership Conference
          Camelback Inn, Scottsdale, Arizona
             Contact: 1-703-739-0800; http://www.abiworld.org/

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                      *      *      *

                    Featured Conferences

Renaissance American Management and Beard Conferences presents

Oct. 30-31, 2008
Physician Agreements & Ventures
The Millennium Knickerbocker Hotel - Chicago
Brochure will be available soon!

Nov. 17-18, 2008
Distressed Investing
The Helmsley Park Lane - New York
Brochure will be available soon!


                      *      *      *

Beard Audio Conferences presents:

Bankruptcy and Restructuring Audio Conference CDs


                      *      *      *

More information and list of available titles at:
http://beardaudioconferences.com/bin/topics?category_id=BAR


                             ***********

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 * * *