TCRLA_Public/080926.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

            Friday, September 26, 2008, Vol. 9, No. 192

                            Headlines

A R G E N T I N A

ARECLAS SA: Proofs of Claim Verification Deadline Is October 2
METROGAS SA: S&P Ratings Unaffected By Argentine Tariff Increases
PEDRO CARRICONDO: Trustee Verifying Proofs of Claim Until Oct. 13
SIEMBRE Y COSECHA: Files for Reorganization in Buenos Aires Court
TRANSPORTADORA DE GAS: Ratings Unaffected By New Tariffs, S&P Says

* BUENOS AIRES: Fitch Affirms B Foreign and Local Currency Ratings
* ARGENTINA: Eyes Petroleo Plus Program Implementation


A R U B A

VALERO ENERGY: Acquisition Talks With Petrobras Put on Hold


B E R M U D A

CRYSTAL LAND: Deadline for Proof of Claim Filing Is Oct. 9
CRYSTAL LAND: Holding Final Shareholders Meeting on Oct. 28
FOSTER WHEELER: To Promote Gary Nedelka as CEO on January 1
MPF CORP: Files for Bankruptcy in Texas and Bermuda
MPF CORP: Case Summary & 20 Largest Unsecured Creditors

TRIAD ASSURANCE: Proof of Claim Filing Deadline Is Oct. 9
TRIAD ASSURANCE: To Hold Final Shareholders Meeting on Oct. 28


B R A Z I L

AUTOCAM CORP: Moody's Changes PDR to 'Caa3/LD' From Caa3
COMPANHIA DE SANEAMENTO: S&P Holds BB-/Stable Corp. Credit Rating
COMPANHIA DE SANEAMENTO: Fitch Keeps BB Ratings, Outlook Positive
DELPHI CORP: Access to GM Loans Illusory, Committee Says
DELPHI CORP: Government Balks at Release Provisions in GM Deal

DELPHI CORP: Wants Appaloosa's Motion to Strike Denied
DELPHI CORP: Will Not Pay Plan Investors
DELPHI CORP: Gets Permission to Halt Pension Contributions
FORD MOTOR: Reviewing Lehman Bankruptcy's Impact on Loan
GENERAL MOTORS: US$3.5BB Loan Draw Down Won't Affect S&P's Ratings

GERDAU SA: Mulls Expanding Colombian Steel Capacity in 2011
TAM SA: Commencing International Flights to Miami and Paris


C A Y M A N  I S L A N D S

ALTERNATIVE INVESTMENTS: Final Shareholders Meeting Is Oct. 2
ASTMAX JELS: Will Hold Final Shareholders Meeting on Oct. 2
ASTPHOENIX FUND: To Hold Final Shareholders Meeting on Oct. 2
CEDARWOODS CRE: Holding Final Shareholders Meeting on Oct. 2
FRASER SULLIVAN: Sets Final Shareholders Meeting for Oct. 2

HARUMI 1: Will Hold Final Shareholders Meeting on Oct. 2
KAKUSAN INVESTMENT: Holds Final Shareholders Meeting on Oct. 2
OPUS SPECIAL OPPORTUNITIES: Final Shareholders Meeting Is Oct. 2
SALOMON BROTHERS: To Hold Final Shareholders Meeting on Oct. 2
SUKESAN LTD: Holding Final Shareholders Meeting on Oct. 2

SUKESAN INVESTMENT: Sets Final Shareholders Meeting on Oct. 2


E L  S A L V A D O R

HANESBRANDS INC: To Shutdown LatAm Plants to Reduce Costs


M E X I C O

DIOMED HOLDINGS: Plan Goes to Creditors for Confirmation Vote
EMPRESAS ICA: Flour Joint Venture Bags Contract From Pemex
FEDERAL-MOGUL: Restructuring Plan Includes 4,000 Workforce Cut
TERNIUM MEXICO: S&P Affirms BB- Long-Term Corporate Credit Rating


P U E R T O  R I C O

HOME INTERIORS: Details Plans to Split Up; Officers to Submit Bids
HOME INTERIORS: Taps Houlihan Lokey to Sell Operating Assets


V E N E Z U E L A

PETROZUATA FINANCE: S&P Withdraws Debt Ratings at PDVSA's Request

* VENEZUELA: Research & Markets Provides 2008 Industry Outlook
* FDI in LatAm & Caribbean Reports US$126.3 Billion in 2007
* Natural Gas Alternative for Central America Costs US$1.55BB


                         - - - - -


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

ARECLAS SA: Proofs of Claim Verification Deadline Is October 2
--------------------------------------------------------------
Armando Gutman, the court-appointed trustee for Areclas SA's
bankruptcy proceeding, will be verifying creditors' proofs of
claim until October 2, 2008.

Mr. Gutman will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 3 in Buenos Aires, with the assistance of Clerk
No. 5, 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 Areclas SA and its creditors.

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

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

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

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

The debtor can be reached at:

                     Areclas SA
                     Pinzon 281
                     Buenos Aires, Argentina

The trustee can be reached at:

                     Armando Gutman
                     Esmeralda 625
                     Buenos Aires, Argentina


METROGAS SA: S&P Ratings Unaffected By Argentine Tariff Increases
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that its ratings on
Argentine natural gas distribution company Metrogas S.A. (B-
/Stable/--) are not immediately affected by the tariff increases
recently announced by the Argentine government.  Increases would
range between 10% and 30% depending on the type of customer and
its consumption level.  

Although S&P still has to analyze the final terms of the new
tariff scheme (the official resolution has not been released yet),
the tariff increase would not affect its rating on Metrogas at
this point.  This is mainly because S&P expects proceeds from the
increase to go to a trust to be created.  Metrogas would not
discretionally dispose of that cash, but would use funds to
finance capital expenditures until one of its main shareholders
(BG Group) withdraws its legal claim against the country in
international courts.  

Considering an average 20% tariff increase, the impact for
Metrogas would be at least ARS35 million to ARS45 million (about
US$10 million to US$15 million) in higher expected cash generation
annually.  As a result,  if the company could fully dispose of
proceeds from higher tariffs, it would improve its financial
profile.

Headquartered in Buenos Aires, Argentina, Metrogas SA --
http://www.metrogas.com.ar/-- distributes gas to Buenos Aires and  
southern and eastern greater metropolitan Buenos Aires.  The
company has a 35-year concession that began in 1992 to provide
natural gas in this area.  The concession is renewable for an
additional 10 years.  Metrogas is 45% owned by a subsidiary of UK
gas production company BG Group and 26% owned by a unit of Spanish
oil company Repsol YPF.


PEDRO CARRICONDO: Trustee Verifying Proofs of Claim Until Oct. 13
-----------------------------------------------------------------
The court-appointed trustee for Pedro Carricondo e Hijos S.R.L.'s
reorganization proceeding will be verifying creditors' proofs of
claim until October 13, 2008.

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

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

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

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

Creditors will vote to ratify the completed settlement plan  
during the assembly on May 4, 2008.


SIEMBRE Y COSECHA: Files for Reorganization in Buenos Aires Court
-----------------------------------------------------------------
Siembre y Cosecha SA has requested for reorganization approval
after failing to pay its liabilities.

The reorganization petition, once approved by the court, will
allow Siembre y Cosecha 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. 5 in Buenos Aires.  Clerk No. 10 assists the court in
this case.


TRANSPORTADORA DE GAS: Ratings Unaffected By New Tariffs, S&P Says
------------------------------------------------------------------
Standard & Poor's Ratings Services said that its rating on
Argentine natural gas transportation company Transportadora de Gas
del Sur S.A. (TGS; B+/Stable/--) is not affected by the tariff
increases recently announced by the Argentine government.
Increases would range between 10% and 30% depending on the type of
customer and its consumption level, and would represent about
ARS75 million to ARS90 million (about US$25 million to US$30
million) in higher expected cash generation for the company.  
Although S&P still has to analyze the final terms of the new
tariff scheme (the official resolution has not been released yet),
the tariff increase would not affect its rating on the company.

This is mainly because S&P expects proceeds from the increase to
go to a trust to be created to finance capital expenditures until
the Enron Corp. Group (former shareholder) withdraws its legal
claim against the country in international courts.  Furthermore,
the current rating on Transporadora de Gas Sur is constrained by
country risk implications, high regulatory risk, and potential
currency mismatch.  Mitigating those factors, the company enjoys a
very favorable debt maturity schedule with no principal maturities
until 2014.

Headquartered in Buenos Aires, Argentina, Transportadora de Gas
del Sur SA -- http://www.tgs.com.ar-- is a transporter of natural  
gas and the largest pipeline transmission system in Argentina,
accounting for roughly 60% of the country's total natural gas
consumption.  The company also processes natural gas and markets
natural gas liquids in Argentina.  It operates the General Cerri
gas processing complex and the associated Galvan loading and
storage facility in Bahia Blanca in the Buenos Aires Province
where natural gas liquids are separated from gas transported
through the company's pipeline system and stored for delivery.  
Transportadora de Gas is engaged in midstream activities and the
provision of telecommunication services in Argentina.


* BUENOS AIRES: Fitch Affirms B Foreign and Local Currency Ratings
------------------------------------------------------------------
Fitch Ratings has affirmed the city of Buenos Aires' long-term
foreign and local currency ratings at 'B'.  Likewise, the 'B'
rating on Buenos Aires' euro medium-term note program is affirmed.  
The Rating Outlook remains Stable.

The ratings are supported by strengths in the city of Buenos
Aires' credit profile, including its large and diversified
economy, an adequate liquidity position, and the city's
sustainable debt levels and manageable debt-service repayment
schedule.  The city's creditworthiness is also supported by
financial flexibility, as the majority of the city's total
expenditures are financed with local sources (87%), the remainder
coming from federal transfers.

The city has met its debt obligations in a timely fashion.  As of
may 2008 the Series II and III under the EMTN Program were totally
canceled, after the total redemption of Series V in July 2007, and
currently only Series I and IV remain outstanding.

This rating is in line with Argentina's rating and also includes
the possibility of new debt issuance of ARS1.6 billion
(US$500 million).  The general terms and conditions of the new
financing were defined through the 2789 Law last July 2008.  In
this law the EMTN program was increased up to US$1.1 billion, and
stipulates that the debt can be denominated in local or foreign
currency.  The city is handling a issuance of around USD250
million with a 10-year tenor.

The city's finances deteriorated in recent years due to current
expense growth that exceeded the rate of revenue growth.  The
challenge for the new administration that took office in December
2007 will be to manage its finances in the context of a higher
level of indebtedness in the coming years.  Fitch will monitor
debt dynamics, revenue performance, and expense control, as well
as evaluate the specific terms and conditions of the new issuance
once announced.

As of December 2007 the city maintains an operative balance level
of ARS1.129 million, which represents an improvement compared with
the previous year.  Nonetheless, it presents a financial deficit
of ARS336 million, with a cash position of ARS326 million at the
same data.  The challenge for the city's administration will be to
manage its finances in the context of a higher level of
indebtedness in the coming years.

During the first quarter the city shows a financial surplus of
ARS905 million, representing 30% of total revenues, a solid
recovery compared with the same period the previous year (+35%).
Operative expenses are in line with the budget.

The 2008 budget reflects the new administration's policy, with
some adjustments in revenue levels and control and with reduced
expenses.  It presents an operative balance of ARS1.466 million,
with a negative primary result, of around ARS1.184 million.  The
financial result is projected to be negative, at around
ARS1.314 million (11.1% on total revenues).  This deficit responds
mainly to higher capital expenses -- to be financed through the
new debt -- and can be managed by the administration.

Total debt as of December 2007 is around ARS1,804 millions.  The
total debt/total revenues ratio has been improving in the last
years, at 32.7% in 2005, 25.9% in 2006 and 19% in 2007.  This is a
favorable ratio compared with the average of the provinces.  
Considering a new issue of USD500 million, Fitch anticipates that
this ratio could reach a level of 28%, which is an adequate ratio.

In December 2007 the 2570 Law was promulgated, which created the
'Infrastructure Social Fund' to finance specific public works.  
The law allows the city to borrow up to ARS1.6 billion to finance
the Infrastructure Fund.


* ARGENTINA: Eyes Petroleo Plus Program Implementation
------------------------------------------------------
Argentina's federal government plans to implement the Petroleo
Plus (Oil Plus in English) program similar to the Gas Plus program
that has allowed hydrocarbons producers to sell incremental
natural gas output at increased prices, Nathan Crooks at Business
News Americas reports.

Neuquen province governor Jorge Sapag, after signing a new
contract with oil firm YPF, said the program presumably would
allow oil producers to sell incremental oil output beyond today's
US$47/b regulated price, adding that details still are emerging,
BNamericas notes.

According to BNamericas, Argentina's energy ministry in March
passed the Gas Plus program to promote the development of natural
gas from non-traditional sources.

Mr. Sapag, as cited by BNamericas, disclosed that it is not clear
whether Petroleo Plus will increase prices at the wellhead or
provide subsidies for producers.

Neuquen's deputy hydrocarbons minister Hector Mendiberry told
BNamericas that they still don't know if it's going to price or
tax incentives, but they were hoping for a price increase.

"Tax benefits won't do anything to help the province.  Royalties
are based on price," BNamericas quoted Mr. Mendiberry as saying.

                           *     *     *

The Troubled Company Reporter-Latin America reported on Aug. 13,
2008, that Standard & Poor's Ratings Services said that its
lowering of the sovereign ratings on the Republic of Argentina
will not immediately affect ratings on Argentine corporate
entities.  S&P lowered the global scale ratings on Argentina to
'B' from 'B+' and the national scale ratings to 'raAA-' from
'raAA'.  The outlook on the sovereign is stable, and the 'B'
short-term global scale rating remains unchanged.



=========
A R U B A
=========

VALERO ENERGY: Acquisition Talks With Petrobras Put on Hold
-----------------------------------------------------------
Petroleo Brasileiro SA has suspended talks to acquire Valero
Energy Corporation's Aruba refinery and an increased stake in
Pasadena Refining, Fabio Palmigiani writes for Business News  
Americas, citing Petrobras downstream director Paulo Roberto
Costa.

Petrobras previously said it was interested in the refinery, which
Valero aims to offload this year, according to the report.

BN Americas notes that the refinery has throughput capacity of
275,000b/d.  The unit processes lower-cost heavy sour crude oil
and can market products in the US Gulf Coast, Florida, the New
York harbor and the Caribbean.

                   Planned Buy of Transcor Astra
                      Ends in Legal Conflict

Mr. Costa, according to BN Americas, added that the proposed
acquisition of Transcor Astra Group's 50% stake in Pasadena
Refining (PRSI), the US company operating the Pasadena refinery in
Texas, is also on hold.  Pasadena has 100,000b/d of installed
capacity.

Petrobras was due to make investments in the refinery but
allegedly failed to do so, creating a legal conflict, the report
reveals.  Petrobras is suing Astra, BN Americas quotes Mr. Costa
as stating.

Astra is Belgium group NPM/CNP's oil trading and refining
subsidiary.

                    About Petroleo Brasileiro SA

Petroleo Brasileiro SA (Petrobras) (NYSE: PBR) is a Rio de
Janeiro, Brazil-based holding company that explores, exploits and
produces oil from reservoir wells, shale and other rocks, and in
the refining, processing, trade and transport of oil and oil
products, natural gas and other fluid hydrocarbons, in addition to
other energy related activities.  Petrobras has 109 production
platforms and 15 refineries.  It operates 31,089 kilometers of
pipelines.  The company has various subsidiaries: Petrobras
Distribuidora SA -- BR, which is involved in the distribution and
commercialization of oil products and natural gas, and Petrobras
Netherlands BV -- PNBV, which is active in the purchase, sale and
rent of equipment and platforms for the production of oil and gas.
Petrobras operates in Brazil, Argentina, Mexico, Portugal, the
United States, Peru and Turkey, among others.

                       About Valero Energy

Headquartered in San Antonio, Texas, Valero Energy Corporation
(NYSE: VLO) -- http://www.valero.com/-- is North America's  
largest independent refining and marketing company, currently
owning 16 oil refineries with nameplate crude oil distillation
capacity of 2.6 barrels per day (bpd) and, including intermediate
feedstock, 3.1 million bpd.  VLO has one of the largest deep
conversion capacities in North America.  Its current portfolio of
refineries displays a somewhat above average Nelson Complexity
Index of 11.1.  Valero Energy is evaluating strategic alternatives
for one to three refineries and each of the potential pro-forma
scenarios would increase its current Nelson index.  The pending
major capital spending programs would further increase Valero
Energy Corporation value adding capacity and complexity downstream
from crude oil distillation.  The company has operated an oil
refinery in Aruba.

                           *     *     *

As reported by the Troubled Company Reporter on May 19, 2008
Standard & Poor's Ratings Services lowered its rating on the
US$15 million unsecured notes due 2012 of Valero Energy Corp.
(BBB/Stable/--) to 'BB-' from 'BBB', reflecting the assumption
of the notes by El Paso Corp. (BB/Positive/--).



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

CRYSTAL LAND: Deadline for Proof of Claim Filing Is Oct. 9
----------------------------------------------------------
Crystal Land Ltd.'s creditors have until Oct. 9, 2008, to prove
their claims to Jennifer Y. Fraser, 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.

Crystal Land's shareholders agreed on Sept. 19, 2008, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.

The liquidator can be reached at:

               Jennifer Y. Fraser
               c/o Canon's Court, 22 Victoria Street
               Hamilton, Bermuda


CRYSTAL LAND: Holding Final Shareholders Meeting on Oct. 28
-----------------------------------------------------------
Crystal Land Ltd. will hold its final shareholders meeting on
Oct. 28, 2008, at 9:00 a.m., at Canon's Court, 22 Victoria Street,
Hamilton, Bermuda.

These matters will be taken up during the meeting:

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

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

   -- passing of a resolution dissolving the company.

Crystal Land's shareholders agreed on Sept. 19, 2008, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.

The liquidator can be reached at:

               Jennifer Y. Fraser
               c/o Canon's Court, 22 Victoria Street
               Hamilton, Bermuda


FOSTER WHEELER: To Promote Gary Nedelka as CEO on January 1
-----------------------------------------------------------
Foster Wheeler Ltd. has promoted Gary T. Nedelka, 54, to chief
executive officer of the company’s Global Power Group (GPG),
effective January 1, 2009.  Mr. Nedelka currently serves as
president and chief executive officer of Foster Wheeler Power
Group International and Foster Wheeler North America Corp.  He
will assume the position from Raymond J. Milchovich, Foster
Wheeler’s chairman and chief executive officer, who has served as
acting CEO of GPG since 2006.

Mr. Nedelka joined Foster Wheeler in 1979 in an engineering
position and subsequently held increasingly responsible positions
in commercial operations and engineering management.  He was
general manager of Foster Wheeler’s office in Beijing from 1997
and, in 2000, established Foster Wheeler's operating companies in
Shanghai and was appointed president and general manager of Foster
Wheeler China.  He was promoted to his current position as head of
Power Group International and North America Power in 2007.

“Gary is an exceptionally talented individual who is widely
respected by clients and employees alike,” said Mr. Milchovich.  
“He has an unsurpassed knowledge of power markets and brings a
global perspective to his management of this business.  We expect
him to make a significant contribution to the ongoing success of
our GPG business in the coming years.  In the near term, Gary will
transition to his new role over the next three months, working
with Foster Wheeler’s president and chief operating officer
Umberto della Sala and me to ensure a seamless process for
development of 2009 business strategy and budget planning.”

Mr. Nedelka holds a Bachelor of Science degree in mechanical
engineering from Clarkson College of Technology.  He is a member
of the American Society of Mechanical Engineers and is a
registered professional engineer in New Jersey.

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

                         *     *     *

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

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


MPF CORP: Files for Bankruptcy in Texas and Bermuda
---------------------------------------------------
The Board of Directors of MPF Corp. filed a voluntary petition
under Chapter of the United States Bankruptcy Code in the United
States Bankruptcy Court for the Southern District of Texas and
provisional liquidation in Bermuda.

According to the board, substantial cost overruns to complete
the MPF 01 Project were identified in June 2008.  In conjunction
with its advisors and the bondholders, the board has been running
a process to sell or refinance the project.  The company's
bondholders continue to fund the project at present.

The sale or refinancing process has not resulted in any firm
offers from potential buyers and the company has exhausted its
financial resources.

The company stated that the objectives for these filing is to
create a framework to achieve the orderly sale of the its assets
and protect the interests of its creditors.  Efforts to sell the
project including the equipment contracts continue, the company
noted.

The company listed assets and debts between US$100 million and
US$500 million in its filing.  The company, Bloomberg says, owe
US$156.5 million to unsecured creditors including Norsk
Tillitsmann ASA, owed US$75 million for bond debt; Aker Kvaerner
Mh AS, owed US$21 million; and Dragados Offshore SA, owed
US$16 million, both for trade debt.

The company's consolidated balance sheets at June 30, 2008, showed
total assets of US$466,324,000 and total debts of US$399,524,000
resulting in a US$66,800,000 stockholders' equity.  Furthermore,
the company reported a US$8,571,000 net loss on total revenue of
US$338,000 for the quarter ended June 30, 2008, compared with a
US$762,000 net loss on total revenue of US$305,000 for the same
period as year ago.

"[It] has incurred significant operating losses and cash outflows
and has a negative working capital as at June 30, 2008," the
company stated in its website.  "[Its] available cash and cash
equivalents and committed sources of cash are not presently
sufficient to fund expected cash requirements through the next 12
months," the company continued.  Its ability to continue as a
going concern depends upon raising additional financing through
borrowings or equity financing.

A full-text copy of the company's consolidated balance sheets at
June 30, 2008, is available for free at:

              http://ResearchArchives.com/t/s?32cf

Headquartered in Bermuda, MPF Corp. Ltd. -- http://www.mpf-
corp.com/ -- engages in deep water oil and gas exploration.  The
company was established on April 25, 2006.


MPF CORP: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------
Debtor: MPF Corp. Ltd.
       Clarendon House
       2 Church Street
       Hamilton HM11
       Bermuda

Bankruptcy Case No.: 08-36086

Debtor-affiliates filing separate Chapter 11 petitions:

       Entity                                     Case No.
       ------                                     --------
MPF Holding US LLC                                 08-36084

Type of Business: The Debtors engage in deep water oil and gas
                 exploration.  The company was established to
                 build tools to improve oil industries develop
                 oilfields.  The company is based in Bermuda with
                 Norwegian and U.S. subsidiaries, MPF Corp.
                 (Norway) AS in Oslo and MPF Operating Company
                 LLC in Houston, Texas.

                 MPF Corp. share are presently traded on the OTC-
                 list in Norway.

                 See: http://www.mpf-corp.com

Chapter 11 Petition Date: September 24, 2008

Court: Southern District of Texas (Houston)

Judge: Jeff Bohm

Debtor's Counsel: D. Bobbitt Noel, Jr., Esq.
                 bnoel@velaw.com
                 Vinson & Elkins LLP
                 1001 Fannin, Ste. 2300
                 Houston, TX 77002
                 Tel: (713) 758-2084
                 Fax: (713) 615-5222

Estimated Assets: US$100 million to US$500 million

Estimated Debts: US$100 million to US$500 million

Debtor's 20 Largest Unsecured Creditors:

  Entity                      Nature of Claim       Claim Amount
  ------                      ---------------       ------------
Norsk Tillitsmann ASA          Bond Debt           US$75,000,000
Postboks 1470 Vika
0116 Oslo Norway
Tel: +47 22 87 94 00
Fax: +47 22 87 94 10

Aker Kvaerner Mh AS            Trade Debt          US$20,970,140
Serviceboks 413
4604 KRISTIANSAND S
Tel: +47 38 05 70 00
Fax: +47 38 05 72 50

Dragados Offshore S.A.         Trade Debt          US$15,948,440
Bajo de la Cabezuela      
11510 Puerto Real (Càdiz)
Direccion Postal          
Apartado 2616-1080
Càdiz, Spain
Tel: +34 956 470 700
Fax: +34 956 470 729

Cosco Dalian Shipyard          Trade Debt          US$13,200,000
Group Co. Ltd.
80 Zhongyuan Road, Dalian
116113 LIAONING, China
Tel: + 86 411 8712 3640
Fax: + 86 411 8760 1056

Pharmadule Emtunga AB          Trade Debt          US$11,795,446
Danvik Center 28
SE-13130
Nacka, Sweden
Tel: +46 8 58 899 800
Fax: +46 8 58 899 888

Keppel Shipyard Limited        Trade Debt          US$6,767,976
51 Pioneer Sector 1
628437 Singapore
Tel: +65 686 14141
Fax: + 65 686 17767

Hydril Company LP              Trade Debt          US$4,375,266
P.O. Box 73762
Dallas, TX 75397-3762
Tel: (281) 449-2000
Fax: (281) 985-3498

Hamworthy Gas                  Trade Debt          US$2,479,721
Solbraaveien 10
NO-1383
Asker, Norway
Tel: +47 815 48500
Fax: +47 815 48510

Parisco AS                     Trade Debt          US$2,315,958
Karenslyst Allé 12
PO Box 81          
NO-0212            
Oslo, Norway      
Tel: +23 27 48 90
Fax: +23 27 48 90

KCA Deutag Drilling Limited    Trade Debt          US$858,889
Minto Drive
Altens Industrial Estate
Aberdeen AB12 3LW
United Kingdom
Tel: +44 (0) 1224 299 600
Fax: +44 (0) 1224 895 813

Wartsila Norway AS             Trade Debt          US$697,249
Ship Power
P.O. Box 252
5420 RUBBESTADNESET
Norway
Tel: +47 53 422 500
Fax: + 47 53 422 501

Fjord Technology AS            Trade Debt          US$520,774
P.O. Box 336
1301 SANDVIKA
Trade Debt $520,774.76
Norway
Tel: +47 67 80 71 20
Fax: +47 67 80 71 21

Det Norske Veritas             Trade Debt          US$398,016
MSHNO080
1322 HoVIK
Norway
Tel: +47 67 57 99 00
Fax: +47 67 57 99 11

Inocean AS                     Trade Debt          US$355,511
Bryggegata 3
NO-0250 OSLO
Norway
Tel: +22 33 11 31
Fax: +22 33 11 32

L.C. Eldridge Sales Co., Inc.  Trade Debt          US$332,656
9800 Richmond Ave., Suite 325
Houston, Texas 77042          
Tel: (713) 780-7200
Fax: (713) 780-9324

Mustang Engineering            Trade Debt          US$186,253
St. Andrews House, West Street
Woking Surrey                
United Kingdom, GU21 6EB
Tel: +44 1483 717700
Fax: +44 1483 717701

First Commissioning Service    Trade Debt          US$169,121
Centro Comercial Vista Hermosa
11500 Elpuerto de Santa Maria,
Cadiz, Spain
Tel: +34 956 873 900
Fax: +34 956 875 420

CLH Invest AS                  Trade Debt          US$60,612
Bamseveien 3B
0774 Oslo Norway
Tel: +47 95 25 58 49

Dong Nam Precision Ind.        Trade Debt          US$52,937
Co., Inc.
1593-6 Song Jeong-Dong,
Gang Seo-Gu
Busan, Korea
Tel: +82 52 239 0300
Fax: +82 52 238 7213

Panalpina Inc.                 Trade Debt          US$39,783
19409 Kenswick Drive
Humble, Texas 77338
Tel: (281) 446-0600


TRIAD ASSURANCE: Proof of Claim Filing Deadline Is Oct. 9
---------------------------------------------------------
Triad Assurance Ltd.'s creditors have until Oct. 9, 2008, to prove
their claims to Jennifer Y. Fraser, 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.

Triad Assurance's shareholders agreed on Sept. 19, 2008, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.

The liquidator can be reached at:

               Jennifer Y. Fraser
               c/o Canon's Court, 22 Victoria Street
               Hamilton, Bermuda


TRIAD ASSURANCE: To Hold Final Shareholders Meeting on Oct. 28
--------------------------------------------------------------
Triad Assurance Ltd. will hold its final shareholders meeting on
Oct. 28, 2008, at 10:00 a.m., at Canon's Court, 22 Victoria
Street, Hamilton, Bermuda.

These matters will be taken up during the meeting:

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

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

   -- passing of a resolution dissolving the company.

Triad Assurance's shareholders agreed on Sept. 19, 2008, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.

The liquidator can be reached at:

               Jennifer Y. Fraser
               c/o Canon's Court, 22 Victoria Street
               Hamilton, Bermuda



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

AUTOCAM CORP: Moody's Changes PDR to 'Caa3/LD' From Caa3
--------------------------------------------------------
Moody's Investors Service changed Autocam Corporation's
Probability of Default rating to Caa3/LD from Caa3 and affirmed
the Corporate Family Rating of Caa3 and Caa2 rating of the senior
secured credit facilities.  The rating action follows the
completion of a capital restructuring which included an exchange
of 20% of the senior secured debt for newly issued equity by its
parent Titan Holdings, Inc., a cash contribution by certain
shareholders of Titan of US$20 million and a credit agreement
amendment.

Moody's considers the transaction a distressed exchange of the
rated term loan debt, thus has changed the PDR to Caa3/LD.  The
PDR will revert to Caa3 in approximately three days. The rating
outlook is negative.

The reduction of the debt of approximately 10% per Moody's
estimate does not materially alter the credit profile reflected in
Autocam's Caa3 CFR.  The company's cash flow generation remains
weak and leverage remains high despite the positive effect of the
debt reduction and the cash infusion by its equity holders as a
result of the restructuring.  The current rating reflects Moody's
continued concern on the company's weak operating performance
which has been impacted by reduced automotive production levels in
North American and Western Europe, as well as operational
difficulties at Autocam's French subsidiaries, among other
factors.

In Moody's opinion, the operating environment for automotive
supplier will remain challenged and Autocam's will likely persist,
offsetting the benefit from the restructuring.

The negative outlook continues to reflect the company's limited
prospect of near-term improvement in the operating performance in
light of a prolonged challenging operating environment for auto
suppliers which will continue for the next 12-18 months.  The
outlook also contemplates the company's weak liquidity position in
spite of the enhancement due to the cash infusion.

The rating action is as follows:

Autocam Corporation

-- Corporate Family Rating: affirmed at Caa3
-- Probability of Default Rating: changed to Caa3/LD from Caa3
-- US denominated first lien term loan affirmed at Caa2
    (LGD-3, 39%)

-- US denominated first lien revolving credit facility affirmed
    at Caa2 (LGD-3, 39%)

-- Outlook, negative

Autocam Corporation France SARL

-- Euro denominated first lien revolving credit facility
    affirmed at Caa2 (LGD-3, 39%)

Moody's last rating action was on August 15, 2008 when Autocam's
CFR was downgraded to Caa3 from B3 with negative outlook.

Autocam Corporation, headquartered in Kentwood, Michigan, is a
manufacturer of extremely close tolerance precision-machined,
metal alloy components, sub-assemblies, primarily for performance
and safety critical automotive applications.  Revenues in 2007
were approximately US$387 million from operations in North
America, Europe, Brazil and China.


COMPANHIA DE SANEAMENTO: S&P Holds BB-/Stable Corp. Credit Rating
-----------------------------------------------------------------
Standard & Poor's Ratings Services has affirmed its 'BB-'
corporate credit rating on the Brazilian water utility Companhia
de Saneamento Basico do Estado de Sao Paulo (Sabesp) and the
ratings on several of the company's debt issues.  At the same
time, S&P also affirmed its 'brA+' Brazil national scale ratings
on Sabesp and several of the company's issues, and assigned its
'brA+' rating to the company's ninth debentures issuance.  The
outlook is positive.
     
Sabesp's ninth debentures issuance will have a total amount of
BRL300 million with final maturity in October 2015.  The
debentures count on a firm commitment basis from bank arrangers,
and will be issued under a two-year BRL3 billion shelf
registration program that the company expects to use for
refinancing and investments purposes.
     
"The ratings affirmation mirrors the continuing improvement in
Sabesp's financial performance, as well as the company progress
regarding the resolution of pending contract negotiations with
municipalities in the state of Sao Paulo," said S&P's credit
analyst Juliana Gallo.  Although the company has a challenging
capital spending program over the next three to four years, the
company counts on several multilateral banks to fund its needs.  
Also, S&P views Sabesp as a company with adequate credit access to
commercial banks and the debt capital markets, as demonstrated by
the ninth debentures issuance it has announced to bring to the
market, despite the current scarce credit scenario in the global
financial markets.  This debentures issuance is already part of
its refinancing needs for 2009.
     
The ratings on Sabesp are supported by the company's solid free
operating cash flow, which has been used to gradually reduce its
high debt volume in the past few years and for funding
investments.  The company counts on steady cash flow metrics and
good financial flexibility with favorable access to the national
and international capital markets.  Sabesp is also a usual client
of development banks, which has historically allowed it to deal
with its robust capital spending program while maintaining a
favorable debt profile (long-term, low-cost funding).  The ratings
also reflect its strategic importance as a regional provider of
water and wastewater services, given its track record as an
efficient operator, and its positive track record of tariff
adjustments.  The company has a virtual monopoly in most of Sao
Paulo's municipalities, and provides efficient and quality service
through a 30-year concession contract that the municipalities have
renewed or extended.
     
On the other hand, the company demonstrates a financial profile
with significant annual maturities, while running an aggressive
capital-expenditure program.  Other vulnerabilities include its
high level of past-due receivables, mainly with the municipalities
it deals with on a wholesale basis, and the challenges of
continually renewing the formal service contracts with 85 already-
ended contracts with the municipalities, including its ability to
establish a contractual relationship with the City of Sao Paulo to
provide services under formal conditions up to 2010.  Other
challenges include the political risk inherent in any public
service operation, and Sabesp's exposure to a new regulatory
environment, which was recently approved and remains under
development.
     
The positive outlook indicates that, due to its currently
improving financial performance, S&P could raise the ratings when
Sabesp has a more defined strategy for capital spending and debt
amortizations scheduled for 2009, and will take into consideration
the continuing progress in renewing concession contracts and
establishing contracts with important uncontracted municipalities.  
S&P could change the outlook to stable or even lower the ratings
if Sabesp's debt profile weakens, if the company fails to
renegotiate contracts, if it adopts a more aggressive financial
stance, or due to any worsening in tariff adjustments practices.  
An aggressive financial policy would include a larger dividend
distribution, thus increasing the company's refinancing needs for
future maturities, resulting in a more leveraged financial
profile.

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.


COMPANHIA DE SANEAMENTO: Fitch Keeps BB Ratings, Outlook Positive
-----------------------------------------------------------------
Fitch takes these rating actions for Companhia de Saneamento
Basico do Estado de Sao Paulo:

  -- Local currency long-term Issuer Default Rating affirmed at
     'BB';

  -- Foreign currency Long-Term IDR affirmed at 'BB';
  -- International long-term rating for the $140 million notes
     issued affirmed at 'BB';

  -- National scale long-term rating affirmed at 'A+(bra);

  -- National scale long-term rating of the 6th debenture issue in
     the amount of BRL600 million affirmed at 'A+(bra)';

  -- National scale long-term rating of the 9th debenture issue in
     the amount of BRL300 million assigned 'A+(bra)'.

The Rating Outlook for the corporate ratings is revised to
Positive from Stable.  The maturity for the 9th debenture issue is
2015 and the resources will be used to pay existing debt.

The Positive Outlook reflects Sabesp's improvements in its credit
protection measures and the expectation of a more stable
regulatory environment in the coming years with the consolidation
of the requests introduced by the new sector legislation.

An upgrade in the ratings is associated with Sabesp maintaining
its credit protection measures at levels compatible with a better
risk classification, notwithstanding a more aggressive investment
program beginning in 2008.  In addition, will be considered
advances in the signature of service contracts with important
municipalities and greater clarity regarding future rate
adjustments.  Fitch also would like to see the company resolve its
probable need for increased resources, especially in 2009, and the
definition of the possible acquisition of Empresa Metropolitana de
Aguas e Energia S.A., including price and payment conditions, if
it is concluded.

The ratings are based on Sabesp's solid financial profile, which
has been strengthened in recent years through high operating
margins, substantial free cash flows and a reduction in
indebtedness.  Sabesp's ratings also benefit from its near
monopoly position in its business region, as well as from the
economies of scale obtained as the largest water utility company
in the Americas in terms of number of customers.  Among the
factors that limit the classifications, Fitch considered the
operation in municipalities where there is no service contract,
the political risk inherent to its government control and exposure
to hydrological risk.  The ratings are also affected by moderate
regulatory risk, due to the need for maturation of the sector's
legislation, and by the company's exchange exposure, given the
volume of its debt in foreign currency.

Sabesp's financial profile has benefited from its strong
operational cash generation.  For the last 12 months ended on June
2008, net revenues of BRL6.1 billion, EBITDA of BRL2.7 billion and
Funds From Operations of BRL2.7 billion were records for the
company.  Its EBITDA margin of 44% remained in the historical
range of 40% to 50%.  The company's FCL has been significant in
the last years, with an annual average of BRL1.1 billion from 2005
to 2007, and contributed to the financial leverage reduction.  For
the last 12 months ended on June 2008, the FCL of BRL635 million
was pressured and became lower than the average due to the payment
to the Government of the State of Sao Paulo of BRL561 million in
interest on own capital accumulated for the years 2004 to 2007 and
higher investments.

Sabesp's credit metrics have been strengthening.  The total
debt/EBITDA ratio was 2.1 times, the FFO adjusted leverage was 1.8
and interest covered by EBITDA was 5.7, strong for the ratings
assigned.  Greater investments foreseen for the three-year period
2008-2010 could pressure Sabesp's FCF, although it can remain
positive in the next years.  Fitch understands that maintaining
the total debt/EBITDA ratio until 2.5 will be important in the
definition of possible rating upgrade.

Operating results could benefit from rate adjustments and
expanding the services provided.  Rates were increased 5.1% in
September 2008.  The volume billed for water and sewage grew 3.1%
in 2007 and 1.6% when comparing the first six months of 2008 with
the same period of previous year.

The challenge for Sabesp will be to raise higher volumes of debt
issuances.  The high increase in future investments and the debt
profile in terms of maturity suggest the need to roll over part of
the maturities next year.  On June 2008, Sabesp reported total
debt of BRL5.8 billion, with BRL1.1 billion maturing on short term
and BRL353 million in availabilities.  The new debentures meet the
requirements for the initial months of 2009, but should remain
more than a BRL500 million complementary necessity, to be raised
in the capital market until the end of next year.  Debt in foreign
currency totaled BRL1.4 billion and the company does not have
protection against this exposure.  Sabesp has a good history in
terms of access to debt market.

Sabesp operates public water and sewage service systems in the
State of Sao Paulo, serving 366 of the 645 existing
municipalities, as well as supplying water on a wholesale basis
for six municipalities in the metropolitan region of Sao Paulo,
treating the sewage for five of them.  The company directly
supplies 23.1 million people with water and 19 million with sewage
collection.  In its business area, Sabesp provides water to more
than 99% of the population and collects 79% of the sewage
produced, of which 70% is treated.  Sabesp is controlled by the
State of Sao Paulo, which holds 50.3% of the company's common and
total shares.

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.


DELPHI CORP: Access to GM Loans Illusory, Committee Says
--------------------------------------------------------
The Official Committee of Unsecured Creditors in Delphi Corp. and
its debtor-affiliates' cases says General Motors Corp. used its
overwhelming leverage against Delphi to force them to depress the
prices they charged to GM, to such a degree that the Debtors have
been losing billions of dollars per year on their sales to GM in
North America.  The Panel asserts that the Debtors must create and
implement a strategy that leads to viable operations in North
America, and not simply continue running those operations at
significant losses to benefit GM.

The Creditors Committee thus asks the United States Bankruptcy
Court for the Southern District of New York to deny amendment to
Delphi Corp.'s liquidity arrangement with GM.

On April 30, 2008, the Court authorized the Debtors to enter into
an amendment and restatement of their DIP credit agreement, and
authorizing them to receive advances of up to US$650,000,000 from
GM pursuant to the terms of a liquidity support agreement between
Delphi and GM.  The agreement was structured to provide a means by
which GM would advance funds to the Debtors representing the
amounts by which GM had underpaid for parts from the Debtors.  GM
would already have paid those amounts to the Debtors had the
Chapter 11 Plan which was confirmed on Jan. 25, 2008, become
effective.

On Aug. 6, the Debtors asked the Court for the approval of an
amendment to the original Delphi/GM amendment, where GM would
increase the aggregate principal amount available by a maximum of
US$300,000,000.

On Sept. 12, the Debtors presented to the Court the Amended
Global Services Agreement and the Amended Master Restructuring
Agreement, which would increase its support for Delphi to
US$10,600,000,000, and help the auto-supplier exit bankruptcy
protection.

Unlike the Original Delphi/GM Agreement, the amendment providing
for the additional US$300,000,000 loan contains stringent
conditions precedent to the Debtors' ability to receive any of
the additional Tranche B Loans, and it is possible that these
additional loans may never become available to the Debtors,
states Robert J. Rosenberg, Esq., at Latham & Watkins LLP, in New
York.

"So many strings are attached new loans the Debtors would receive
under the amended liquidity arrangement with GM, that it would be
fair to say that the Debtors' access to these funds is illusory.

Mr. Rosenberg notes that in exchange for the illusory loans, the
Debtors would give away control over the chapter 11 plan process
to GM.  In addition, GM, he points out, would not be obligated to
advance any new loans if the Court stops the Debtors from
repatriating funds to support the Debtors' North American
operations that are being run primarily for GM's benefit.

Mr. Rosenberg asserts that the use or disposition of estate
assets should be scrutinized in the present case because GM is an
"insider".  He notes that since its spin-off of Delphi, GM:

  (a) has received information from the Debtors that was not
      available to other creditors, shareholders and the general
      public;

  (b) has had substantial influence over decisions made by the
      Debtors;

  (c) had special access to the Debtors' premises and personnel;
      and

  (d) was either the sole source or one of few sources of
      financial support for the Debtors (particularly recently).

Mr. Rosenberg relates that the availability of the Tranche B
Loans terminates if the Debtors fail to file a chapter 11 plan
and disclosure statement in form and substance reasonably
satisfactory to GM by October 31, 2008.  This condition is more
stringent than the terms of the proposed amended GSA (which sets
forth plan requirements, but does not require the Debtors to file
a plan in form and substance reasonably satisfactory to GM and
also does not set forth a deadline of October 31).

To preserve its ability to monitor the Debtors and take action if
necessary, the Committee has retained the right to object to
future repatriations of funds by the Debtors.  However, if the
Committee prevails in such an objection, GM would be able to stop
making additional Tranche B Loans under the Amended Delphi/GM
Agreement, Mr. Rosenberg notes.  "This is but another example of
GM taking control from the Debtors and the Committee."

Mr. Rosenberg notes the Debtors have agreed to new obligations
that favor of GM:

   -- the Amended Delphi/GM Agreement provides that if the DIP
      Facility is amended, modified or replaced such that the
      interest rate of the highest-priced DIP loan tranche is
      higher than the interest rate applicable to the existing
      Tranche A Loans and the Tranche B Loans, then the interest
      rate on all GM advances (including the existing Tranche A
      Loans) would automatically increase to the rate in effect      
      for the highest-priced DIP tranche.

   -- While the interest on the GM advances will be canceled if
      certain events occur, there can be no guarantee that those
      events actually will occur.  Indeed, if the GSA/MRA Motion
      is granted those events, such as confirmation of an
      amended plan, may never occur and Delphi will be obligated
      to repay GM advances in cash, with interest as an
      administrative expense claim.

   -- The Debtors have agreed to pay GM's and its counsel's fees
      and expenses in connection with the preparation and
      delivery of the Amended Delphi/GM Agreement.

             Highland/CR Withdraw Examiner Request,
             Trade Holders Joined Calls for Examiner

The Committee of Delphi Trade Holders joined in the request of CR
Intrinsic Investors, LLC, and Highland Capital Management, L.P.,
for the Court to appoint an examiner.

CR and Highland, which holds notes issued by the Debtors, asked
the Court to order the appointment of an examiner to ensure that
the interests of all creditor bodies are adequately protected and
see to it that the subsidiaries that own the profitable global
operations are not raided to prop up the corporations that own
the "money-losing and cash-guzzling" North American operations.

CR Intrinsic and Highland Capital Management, however, have
agreed to withdraw without prejudice their motion for appointment
of an examiner.  They will continue to prosecute their objections
to the Debtors' motion seeking approval of the GM Arrangement
Amendment.

The Debtors ask the Court to deny CR/Highland's motion to appoint
an examiner, saying that it is not authorized by the Bankruptcy
Code, and alternatively, because it was brought in bad faith and
because the Noteholders have waived their right to seek the
appointment of an examiner based on their prior conduct in these
Chapter 11 cases.

                      About Delphi Corp.

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

The company filed for Chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481).  John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts.  Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represent the Official Committee of Unsecured Creditors.  As of
June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000
in total assets and US$23,742,000,000 in total debts.

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

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


DELPHI CORP: Government Balks at Release Provisions in GM Deal
--------------------------------------------------------------
The United States of America objects to certain of the release  
provisions in Delphi Corporation's new agreement with General
Motors Corporation.

The Debtors have presented to the United States Bankruptcy Court
for the Southern District of New York the Amended Global Services
Agreement and the Amended Master Restructuring Agreement, which
would increase its support for Delphi to US$10,600,000,000, and
help
the auto-supplier exit bankruptcy protection.

The U.S. Government asserts that the language releasing the non-
debtors from any potential claims by the government should be
stricken, or in the alternative, the language which mirrors the
language added to the Court's confirmation order on Delphi's
Joint Plan of Reorganization on consent of all parties should be
added to the Amended Agreements and any order approving them.

Michael J. Garcia, the United States Attorney for the Southern
District of New York, tells the Court that the Amended Agreements
are objectionable to the extent that they seek to release non-
debtors from liability to the U.S. Government under any statute
for conduct in connection with the Debtors, the Chapter 11 case
or "Any Delphi Plan" -- particularly because new language in the
Amended Agreements can be read to foreclose the possibility of
inserting negotiated language like that put into the original
Confirmation Order into any eventual amended plan of
reorganization or confirmation order.                                

Mr. Garcia adds, even if the third-party releases were somehow
found to be acceptable with respect to ordinary creditors, they
are most certainly invalid as against the Government, especially
with reference to GM's environmental and tax liabilities.

Federal government agencies the U.S. Environmental Protection
Agency, the Internal Revenue Service, the Customs and Border
Protection, the Department of Health and Human Services, and the
Equal Employment Opportunity Commission have filed proofs of
claim in Delphi's case.  The Department of Labor and the
Securities Exchange Commission have also filed claims.

                         *     *     *

The Debtors have filed the Amended and Restated Global Settlement
Agreement and the Restated Master Restructuring Agreement with
all the pertinent necessary exhibits.  They have obtained the
Court's approval to file the documents under seal.

                      About Delphi Corp.

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

The company filed for Chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481).  John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts.  Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represent the Official Committee of Unsecured Creditors.  As of
June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000
in total assets and US$23,742,000,000 in total debts.

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

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


DELPHI CORP: Wants Appaloosa's Motion to Strike Denied
------------------------------------------------------
Delphi Corp. and its debtor-affiliates ask the United States
Bankruptcy Court for the Southern District of New York to deny
Appaloosa Management LP's motion to re-argue the Court's Aug. 11
decision to deny dismissal of the US$2,550,000,000 adversary
complaints filed by Delphi Corporation.  Delphi asserts that
Appaloosa has not demonstrated that the Court overlooked any
controlling decisions or factual matters, or presented new
arguments that would have changed the outcome.

The Debtors also oppose Appaloosa's motion to strike certain
allegations written by Delphi in its complaint, saying that those
statements go to the core of their claims against Appaloosa,
which claims the Court has sustained in denying the Motion to
Dismiss.

Edward A. Friedman, Esq., at Friedman Kaplan Seiler & Adelman
LLP, in New York, tells the Court that the Motion to Re-argue
does not come close to satisfying the exacting standards that
govern reconsideration motions, in fact, he says, Appaloosa's
motion to dismiss prefaced its entire legal argument with
reference to the general notice pleading standards, citing Rule
9(b) of the Federal Rules of Civil Procedure only in connection
with Delphi's fraud claim.

Regarding Delphi's opposition to the Motion to Strike,
Mr. Friedman notes that in deciding whether to grant a Civil Rule
12(f) motion to strike, it is settled law that the motion should
be denied, unless it can be shown that no evidence in support of
the allegation would be admissible.

Mr. Friedman asserts that reconsideration is an extraordinary
remedy to be employed sparingly in the interest of finality and
conservation of scarce judicial resources.  The standard for
granting the motion [to re-argue and strike] is strict, and
reconsideration will generally be denied unless Appaloosa can
point to controlling decisions or data that the court overlooked
- matters that might reasonably be expected to alter the
conclusion reached by the Court, Mr. Friedman maintains.

                      About Delphi Corp.

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

The company filed for Chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481).  John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts.  Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represent the Official Committee of Unsecured Creditors.  As of
June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000
in total assets and US$23,742,000,000 in total debts.

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

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


DELPHI CORP: Will Not Pay Plan Investors
----------------------------------------
Delphi Corporation refutes the counterclaims of Appaloosa
Management L.P. and A-D Acquisition Holdings, LLC, and the other
defendants.

The Debtors ask the United States Bankruptcy Court for the
Southern District of New York to dismiss each of the counterclaims
filed by ADAH, UBS Securities LLC, Merrill Lynch, Pierce, Fenner
& Smith Incorporated, Goldman Sachs & Co., Pardus DPH Holding
LLC, Harbinger Del-Auto Investment Company. Ltd., and Harbinger
Capital Partners Master Fund I, Ltd.  In addition, the Debtors
ask the Court to award judgment in their favor, including
attorneys' fees, costs and disbursement.

Edward A. Friedman, Esq., at Friedman Kaplan Seiler & Adelman
LLP, in New York, tells that the Plan Investors are not entitled
to any US$82,500,000 alternate transaction fee, nor are they
entitled to reimbursement for expenses incurred in connection
with the transaction.

Mr. Friedman adds that even if Delphi were obligated to reimburse
the Plan Investors for transaction expenses, the amount of the
payments requested by the Plan Investors after April 4, 2008, are
exceeded by the amount the Plan Investors owe to Delphi as a
consequence of their breaches of the December 10,2007 EPCA, and
other fraudulent, wrongful, and inequitable conduct.

Moreover, the counterclaims of ADAH and the other parties are
barred by the doctrine of unclean hands, and the doctrine of the
waiver of estoppel, Mr. Friedman contends.

                      About Delphi Corp.

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

The company filed for Chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481).  John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts.  Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represent the Official Committee of Unsecured Creditors.  As of
June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000
in total assets and US$23,742,000,000 in total debts.

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

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


DELPHI CORP: Gets Permission to Halt Pension Contributions
----------------------------------------------------------
David McLaughlin at Dow Jones Newswires reports that the Hon.
Robert Drain U.S. Bankruptcy Court for the Southern District of
New York granted Delphi Corp. permission on Tuesday to freeze
contributions to pension plans for hourly and salaried workers,
despite an objection by the Committee of Unsecured Creditors.

Dow Jones relates that Delphi will freeze the pension plan for
salaried workers on Sept. 30,2008.  Delphi, says Dow Jones, will
freeze the pension plan for hourly workers as soon as an agreement
can be reached with labor unions.  

Delphi said that it will save US$4 million per quarter by freezing
the pension plan for hourly workers and US$26 million per quarter
by
freezing the plan for salaried workers, Dow Jones states.  
Christopher Scinta at Bloomberg News reports that court documents
indicate that each month the hourly pension plan costs Delphi
about US$1 million.

Delphi will provide workers with replacement plans based on
defined contributions by the company, Dow Jones says.

According to Dow Jones, Robert Rosenberg, an attorney for the
creditors committee, said that the plan for top executives should
be approved as part of Delphi's bankruptcy plan.  "Of all the
times to lock in a new program given what's going on in the auto
industry and the capital markets with no knowledge of what reality
is going to look like tomorrow let alone in a year, the timing is
just not appropriate," Dow Jones quoted Mr. Rosenberg as saying.

"It would be patently unreasonable" to create replacement plans
for everyone except 460 top executives, Bloomberg says, citing
Delphi attorney John Butler Jr.

Delphi will also ask the Court to shift US$3.4 billion in pension
liabilities to General Motors Corp., Dow Jones says.  Bloomberg
relates that the creditors committee is also opposing revised
agreements that increase the financial contributions GM will make
to Delphi as part of its reorganization to US$10.6 billion from
US$6 billion.  Attorneys from Latham & Watkins representing the
creditors said in a court filing that Delphi will "give away
control over the Chapter 11 plan process to GM" in exchange for
financing.

Bloomberg reports that the Court must approve the changes by the
end of September if GM is to take on US$3.4 billion of Delphi's
pension liabilities to block the federal Pension Benefit Guaranty
Corp. from putting a lien on Delphi's foreign assets.

The Court will hold a hearing amending the GM agreements until
Sept. 25, Bloomberg states.

                   About General Motors

Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908.  GM
employs about 266,000 people around the world and manufactures
cars and trucks in 35 countries.  In 2007, nearly 9.37 million GM
cars and trucks were sold globally under the following brands:
Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel,
Pontiac, Saab, Saturn, Vauxhall and Wuling.  GM's OnStar
subsidiary is the industry leader in vehicle safety, security and
information services.

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

At June 30, 2008, the company's balance sheet showed total assets
of US$136.0 billion, total liabilities of US$191.6 billion, and
total stockholders' deficit of US$56.9 billion.  For the quarter
ended June 30, 2008, the company reported a net loss of
US$15.4 billion over net sales and revenue of US$38.1 billion,
compared to a net income of US$891.0 million over net sales and
revenue of US$46.6 billion for the same period last year.

                      About Delphi Corp.

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

The company filed for Chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481).  John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts.  Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represent the Official Committee of Unsecured Creditors.  As of
June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000
in total assets and US$23,742,000,000 in total debts.

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

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


FORD MOTOR: Reviewing Lehman Bankruptcy's Impact on Loan
--------------------------------------------------------
Ford Motor Co. disclosed in a Securities and Exchange Commission
that it is currently assessing the impact, if any, that the
Chapter 11 bankruptcy filing by Lehman Brothers Holdings Inc. will
have on Lehman Commercial Paper Inc. and Lehman Brothers Bank's
commitments to the company.

Lehman CPI is one of the lenders participating in Ford Motor's
US$11.5 billion revolving credit facility that is part of its
secured Credit Agreement dated Dec. 15, 2006.  Lehman CPI's
commitment under the revolving credit facility is US$890 million,
all of which is presently unfunded.

Lehman Brothers Bank, FSB provides US$238 million of the aggregate
US$16.3 billion of contractually committed liquidity facilities
supporting the retail securitization program of Ford Motor Credit
Company LLC, a wholly owned subsidiary.  

Lehman Brothers Bank's commitment is guaranteed by Lehman Brothers
Holdings Inc., which is the ultimate parent company of Lehman CPI
and Lehman Brothers Bank.

On Sept. 15, 2008, Lehman filed for protection under Chapter 11 of
the U.S. Bankruptcy Code, but that its subsidiaries, which would
include Lehman CPI and Lehman Brothers Bank, were not included in
the filing.  

                     About Ford Motor Co.

Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures or distributes automobiles in
200 markets across six continents.  With about 260,000 employees
and about 100 plants worldwide, the company's core and affiliated
automotive brands include Ford, Jaguar, Land Rover, Lincoln,
Mercury, Volvo, Aston Martin, and Mazda.  The company provides
financial services through Ford Motor Credit Company.

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

                         *     *     *

As reported in the Troubled Company Reporter-Latin America on
Aug. 21, 2008, Standard & Poor's Ratings Services said its
ratings on Ford Motor Co. (B-/Negative/--) and related entities
are not affected by Ford's intention to use up to US$500 million
of new common equity issuance to make purchases of Ford Motor
Credit Co.'s debt.  Debt due before 2012 will be the focus of
the repurchases.  Any such purchases in the open market or in
private transactions will likely be at a discount from par,
given current prices.  S&P views such purchases as a modest
positive for Ford's consolidated credit quality.

The TCR-LA reported Aug. 6, 2008, that Fitch Ratings downgraded
the issuer default rating of Ford Motor Company and Ford Motor
Credit Company LLC to 'B-' from 'B'.  The Rating Outlook remains
Negative.  The downgrade reflects these: (i) the further
deterioration in Ford's U.S. sales as a result of economic
conditions, an adverse product mix and the most recent jump in
gas prices; (ii) portfolio deterioration at Ford Credit and
heightened concern regarding economic access to capital to
support financing requirements; and (iii) escalating commodity
costs that will remain a significant offset to cost reduction
efforts.


GENERAL MOTORS: US$3.5BB Loan Draw Down Won't Affect S&P's Ratings
------------------------------------------------------------------
Standard & Poor's Ratings Services said that its ratings on
General Motors Corp. (B-/Negative/--) are not immediately affected
by the company's announcement that it will draw down the remaining
US$3.5 billion of its secured revolving credit facility.  This
action underscores the anxious state of the capital markets, and
S&P remains concerned that the weak credit markets, if sustained,
could delay or complicate GM's plans to raise an additional
US$2 billion to US$3 billion from secured debt issuance and
another US$2 billion to US$4 billion from asset sales.  

S&P does not believe GM's action reflects any additional
deterioration of the company's prospective cash outflows compared
to S&P's assumptions.  S&P previously estimated that GM could use
as much as US$16 billion from its global automotive operations
this
year, including cash restructuring costs and costs related to
bankrupt former unit Delphi Corp.
   
GM's cash and short-term investments totaled US$21 billion at
June 30, 2008, although S&P expects this amount to be reduced by
continued cash outflows.  S&P could lower the ratings if it came
to believe that cash and short-term investments would drop below
US$15 billion before the middle of 2009, or if total liquidity
would
drop below US$20 billion.
   
Separately, GM announced the completion of a US$322 million debt-
to-
equity exchange.  This action, although positive, represents only
a minor offset to the additional interest costs GM will take on by
drawing the remaining US$3.5 billion of its revolving credit
facility.

Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908.  GM
employs about 266,000 people around the world and manufactures
cars and trucks in 35 countries.  In 2007, nearly 9.37 million GM
cars and trucks were sold globally under the following brands:
Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel,
Pontiac, Saab, Saturn, Vauxhall and Wuling.  GM's OnStar
subsidiary is the industry leader in vehicle safety, security and
information services.

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


GERDAU SA: Mulls Expanding Colombian Steel Capacity in 2011
-----------------------------------------------------------
Gerdau S.A. will expand its installed capacity in Colombia during
2008 from 550,000 tonnes per annum to 850,000 tonnes per annum and
push output to 1 million tonnes per annum in 2011, Steel Guru
reports.

"To get the job done, we are boosting our installed rolling and
steelmaking capacities in order to supply the construction market
and specifically infrastructure.  In addition, we are always
looking for new business opportunities within this dynamic process
that our sector is experiencing," Steel Guru relates, citing
Gerdau CEO Andre Gerdau Johannpeter.

According to the report, Gerdau will have a US$6.4 billion
investment plan to 2010 for its entire organization that will
allow it to boost installed capacity 14%.  Of those resources,
US$859 million will be channeled into Latin America excluding
Brazil.

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

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on Aug.
28, 2008, Moody's Investors Service changed to positive from
stable the outlook of all ratings related to Gerdau S.A. (Ba1
Corporate Family Rating and Ba1 US$600 million guaranteed
perpetual bonds).


TAM SA: Commencing International Flights to Miami and Paris
-----------------------------------------------------------
TAM SA began operating two new international routes last weekend
from the Belo Horizonte Airport (Confins).  TAM began offering
daily flights from the capital of Minas Gerais to Miami (USA),
with a stop in Rio de Janeiro, and to Paris (France) with a stop
in Sao Paulo.  

"These flights are a major step towards strengthening the Belo
Horizonte Airport (Confins) and consolidating it as an
international hub," said TAM  president, Captain David Barioni
Neto.

The frequency to Miami is operated from the Tom Jobim Airport
(Galeao), in Rio de Janeiro, using a Boeing 767-300 with capacity
of up to 205 passengers in Executive and Economy class
configuration.  The Paris frequency will operate from Sao Paulo's
Guarulhos Airport using a modern Airbus A330 aircraft configured
for three classes, replacing the MD-11 currently being used that
should be returned this year.  The Belo Horizonte-Rio de Janeiro
and Belo Horizonte-Sao Paulo legs are operated in both directions
using Airbus A320 aircraft.

The flight to Miami departs from Tancredo Neves International
Airport in Belo Horizonte (Confins) at 7:30 p.m., arriving at Tom
Jobim Airport (Galeao) in Rio de Janeiro at 8:25 p.m., from where
it departs at 11:05 p.m. for Miami International Airport, landing
at 6:30 a.m. the following day.  The return trip departs Miami at
10:05 p.m. for Rio de Janeiro (Galeao), arriving at 7:10 a.m.,
departing at 9:30 a.m. for Belo Horizonte (Confins) and arriving
at 10:35 a.m.  The roundtrip price between Belo Horizonte and
Miami will begin at US$829 for tickets issued until Dec. 4.

The flight to Paris departs Belo Horizonte (Confins) at 7:25 p.m.
and lands in Sao Paulo (Guarulhos) at 8:40 p.m., departing at 11
p.m. and arriving in Paris (Charles de Gaulle Airport) the
following day at 3:20 p.m.  The return flight departs Paris at 11
p.m. and arrives in Sao Paulo (Guarulhos) the following day at
5:40 a.m., departing at 8:30 a.m. for Belo Horizonte and landing
at 9:35 a.m.

With these new frequencies, TAM will operate three international
flights daily from Belo Horizonte International Airport.  Besides
the flights to Miami and Paris, TAM has been operating a daily
frequency since November 2007 between Belo Horizonte and Buenos
Aires (Argentina), with a stop in Guarulhos, Sao Paulo.

"These international flights are an unequivocal demonstration of
TAM's wager on the development of the Belo Horizonte market," said
TAM's vice president for Commercial and Planning, Paulo Castello
Branco.  In addition to international operations, the company also
has invested in the creation of new domestic flights directly
connecting the Minas Gerais capital to destinations in the south
of the country, without stopping in Sao Paulo.

For example, since August, the flight that departs Porto Alegre
(Rio Grande do Sul) at 7:30 a.m. lands in Curitiba at 8:35 a.m.,
and then departs at 9:15 a.m. for Belo Horizonte (Confins),
arriving at 11:00 a.m.  In the opposite direction, the flight
departs Confins at 8:00 p.m. and lands in Curitiba at 9:45 p.m.,
departing at 10:20 p.m. for Porto Alegre, where it arrives at
11:25 p.m. The flight that departs Belo Horizonte (Confins) at 12
noon and lands in Sao Paulo (Guarulhos) at 1:20 p.m. Allows for a
number of domestic and international connections operated by TAM
and partner airlines.  In the opposite direction, the flight
leaves Sao Paulo at 6:05 p.m. and arrives in the Minas Gerais
capital at 7:20 p.m.

The Confins-Rio de Janeiro (Galeao)-Confins and Confins-Sao Paulo
(Guarulhos)-Confins routes are operated with Airbus A320 aircraft.

                            About TAM

TAM S.A. -- 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.



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

ALTERNATIVE INVESTMENTS: Final Shareholders Meeting Is Oct. 2
-------------------------------------------------------------
Alternative Investments Fund Ltd. will hold its final shareholders
meeting on Oct. 2, 2008, at 10:00 a.m., at the offices of Ogier,
Queensgate House, South Church Street, Grand Cayman, Cayman
Islands.

These matters will be taken up during the meeting:

   1) accounting of the wind-up process, and
   
   2) authorizing the liquidators of the company to retain the
      records of the company for a period of five years from the
      dissolution of the company, after which they may be  
      destroyed.

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

The liquidator can be reached at:

               Global Pacifica Ltd.
               c/o Ogier
               P.O. Box 1234
               Grand Cayman, Cayman Islands

Contact for inquiries:

               Jonathan McLean
               Tel: (345) 949-9876
               Fax: (345) 949-1986


ASTMAX JELS: Will Hold Final Shareholders Meeting on Oct. 2
-----------------------------------------------------------
Astmax Jels Fund Ltd. will hold its final shareholders meeting on
Oct. 2, 2008, at the offices of Maples Finance Limited, Boundary
Hall, Cricket Square, George Town, Grand Cayman, Cayman Islands.

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

Astmax Jels' shareholders agreed on May 20, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidators can be reached at:

                 Jagjit (Bobby) Toor and Jan Neveril
                 c/o Maples Finance Limited,
                 P.O. Box 1093GT, Grand Cayman,
                 Cayman Islands


ASTPHOENIX FUND: To Hold Final Shareholders Meeting on Oct. 2
-------------------------------------------------------------
Astphoenix Fund Ltd. will hold its final shareholders meeting on
Oct. 2, 2008, at the offices of Maples Finance Limited, Boundary
Hall, Cricket Square, George Town, Grand Cayman, Cayman Islands.

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

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

The liquidators can be reached at:

                 Jagjit (Bobby) Toor and Giles Kerley
                 c/o Maples Finance Limited,
                 P.O. Box 1093GT, Grand Cayman,
                 Cayman Islands


CEDARWOODS CRE: Holding Final Shareholders Meeting on Oct. 2
------------------------------------------------------------
Cedarwoods Cre CDO III Ltd. will hold its final shareholders
meeting on Oct. 2, 2008, at the offices of Maples Finance Limited,
Boundary Hall, Cricket Square, George Town, Grand Cayman, Cayman
Islands.

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

Cedarwoods Cre's shareholders agreed on May 29, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidators can be reached at:

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


FRASER SULLIVAN: Sets Final Shareholders Meeting for Oct. 2
-----------------------------------------------------------
Fraser Sullivan CLO IV Ltd. will hold its final shareholders
meeting on Oct. 2, 2008, at the offices of Maples Finance Limited,
Boundary Hall, Cricket Square, George Town, Grand Cayman, Cayman
Islands.

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

Fraser Sullivan's shareholders agreed on May 29, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

                 Chris Watler and Jagjit (Bobby) Toor
                 c/o Maples Finance Limited,
                 P.O. Box 1093GT, Grand Cayman,
                 Cayman Islands

HARUMI 1: Will Hold Final Shareholders Meeting on Oct. 2
--------------------------------------------------------
Harumi 1 Ltd. will hold its final shareholders meeting on Oct. 2,
2008, at the offices of Maples Finance Limited, Boundary Hall,
Cricket Square, George Town, Grand Cayman, Cayman Islands.

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

Harumi's shareholders agreed on July 10, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidators can be reached at:

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


KAKUSAN INVESTMENT: Holds Final Shareholders Meeting on Oct. 2
--------------------------------------------------------------
Kakusan Investment Ltd. will hold its final shareholders meeting
on Oct. 2, 2008, at the offices of Maples Finance Limited,
Boundary Hall, Cricket Square, George Town, Grand Cayman, Cayman
Islands.

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

Kakusan Investment's shareholders agreed on July 10, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

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


OPUS SPECIAL OPPORTUNITIES: Final Shareholders Meeting Is Oct. 2
----------------------------------------------------------------
Opus Special Opportunities Fund Ltd. will hold its final
shareholders meeting on Oct. 2, 2008, at the offices of Maples
Finance Limited, Boundary Hall, Cricket Square, George Town, Grand
Cayman, Cayman Islands.

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

Opus Special Opportunities' shareholders agreed on June 26, 2008,
to place the company into voluntary liquidation under The
Companies Law (2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

                 Jagjit (Bobby) Toor and Giles Kerley
                 c/o Maples Finance Limited,
                 P.O. Box 1093GT, Grand Cayman,
                 Cayman Islands


SALOMON BROTHERS: To Hold Final Shareholders Meeting on Oct. 2
--------------------------------------------------------------
Salomon Brothers Overseas Inc. will hold its final shareholders
meeting on Oct. 2, 2008, at the offices of Maples Finance Limited,
Boundary Hall, Cricket Square, George Town, Grand Cayman, Cayman
Islands.

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

Salomon Brothers' shareholders agreed on June 25, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

                 Jagjit (Bobby) Toor and Giles Kerley
                 c/o Maples Finance Limited,
                 P.O. Box 1093GT, Grand Cayman,
                 Cayman Islands


SUKESAN LTD: Holding Final Shareholders Meeting on Oct. 2
---------------------------------------------------------
Sukesan Ltd. will hold its final shareholders meeting on Oct. 2,
2008, at the offices of Maples Finance Limited, Boundary Hall,
Cricket Square, George Town, Grand Cayman, Cayman Islands.

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

Sukesan's shareholders agreed on July 10, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidators can be reached at:

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


SUKESAN INVESTMENT: Sets Final Shareholders Meeting on Oct. 2
-------------------------------------------------------------
Sukesan Investment Ltd. will hold its final shareholders meeting
on Oct. 2, 2008, at the offices of Maples Finance Limited,
Boundary Hall, Cricket Square, George Town, Grand Cayman, Cayman
Islands.

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

Sukesan Investment's shareholders agreed on July 10, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

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



====================
E L  S A L V A D O R
====================

HANESBRANDS INC: To Shutdown LatAm Plants to Reduce Costs
---------------------------------------------------------
Hanesbrands Inc. has disclosed continued progress in executing its
consolidation and globalization cost-reduction strategy, which
includes increasing production in Asia.

The latest supply chain streamlining, expected to be completed by
the end of summer 2009, will consolidate production through nine
plant closures in five countries in the Western Hemisphere,
affecting approximately 8,100 employees.  It also will complete
the migration of the company’s large knit-fabric textile
production from the United States.

“We are making significant progress in expanding our supply chain
production capability in Asia and consolidating into fewer, larger
facilities located in lower-cost countries around the world,”
Hanesbrands Chief Executive Officer Richard A. Noll said.  
“Globalizing our supply chain, and eventually balancing production
between Asia and the Western Hemisphere, is a critical plank in
our strategic efforts to reduce costs, improve product flow and
increase our competitiveness.”

By the end of 2008, Hanesbrands is expected to substantially close
seven plants -– a sewing plant in El Salvador, affecting 2,600
employees; a sewing plant in Honduras, affecting 1,250 employees;
a sewing plant in Costa Rica, affecting 1,250 employees; and two
yarn plants, a knit-fabric textile plant and an inventory storage
warehouse in the United States, affecting 745 employees.

By the end of summer 2009, the company expects to also close a
sewing plant in Mexico, affecting 1,650 employees, and close its
last large knit-fabric textile plant in the United States,
affecting 600 employees.

Hanesbrands expects to incur restructuring and related charges for
these nine plant actions, including severance and contract
termination costs, accelerated depreciation of fixed assets and
inventory write-offs, totaling approximately US$76 million, of
which approximately two-thirds are expected to be incurred in the
third quarter of 2008.  With these charges, Hanesbrands will have
taken approximately US$204 million out of the US$250 million in
restructuring charges the company has said it expects to incur in
the three years following the spinoff.

“In addition to improving cost competitiveness, these moves will
lay the foundation for completing our Asia build out and improve
the alignment of our sewing operations with our end-state flow of
textiles,” said Gerald Evans, Hanesbrands president, chief global
supply chain officer.  “We regret that employees will be affected
by this production streamlining, but our supply chain
globalization is necessary to strengthen our overall company and
keep us competitive around the world.”

The textile production from the latest closings will be absorbed
into existing textile plants in Central America.  Hanesbrands has
expanded its fabric production capability offshore in the Western
Hemisphere.  The company has reached planned fabric production
levels at its textile facilities in the Dominican Republic and El
Salvador, with further expansion planned in Central America.

Most of the sewing production from the Central American plants
that will close will be moved to the company’s new Asian
facilities.  Hanesbrands has opened or acquired four sewing plants
in the past two years -– two in Thailand and two in Vietnam.  
Hanesbrands expects to increase its workforce in Asia from 4,000
today to 6,000 by the end of 2008.

“Our startup of supply chain operations in Asia is progressing
very well,” Mr. Evans said.  “Since acquiring our first sewing
operation in Chonburi, Thailand, in 2006, we have doubled
production at that plant with the same number of operators, as we
bring to bear our production and plant operations expertise.  
Operations in Vietnam are starting very fast with excellent
quality from a very capable workforce.”

The company is also constructing a textile fabric plant in
Nanjing, China, which is expected to begin the ramp up of
production in 2009 to supply fabric to the company’s expanding
Asian sewing network.

                     2008 Actions by Country

In El Salvador, the company is ceasing most production this week
at its Pedregal sewing plant near San Salvador, affecting
approximately 1,900 employees.  All production is expected to end
by the end of the first quarter in 2009, affecting another 700
employees.

In Costa Rica, the company has ceased production at its Industria
Textileras sewing plant in Cartago, near San Jose, affecting
approximately 1,250 employees.

In Honduras, the company will cease production by the end of the
year at its intimate apparel sewing plant in Choloma, near San
Pedro Sula, affecting approximately 1,250 employees.

In the United States, production will cease this week at the
company’s knit-fabric textile plant in Forest City, N.C., which
has 470 employees, and at its yarn plant in Gastonia, N.C., which
has 140 employees.  Operations at the company’s sheer hosiery
inventory warehouse in Rockingham, N.C., which has 15 employees,
are expected to end by the end of November.  Production is
expected to end by the end of the year at the company’s yarn plant
in Eden, N.C., affecting 120 employees.

The company will provide severance benefits and career transition
assistance to employees.  “We will work diligently to assist our
employees in their transition,” Mr. Evans said.  “These moves are
a result of our strategy to compete in the global marketplace and
are unrelated to the quality of work of our employees at these
facilities.  We have an outstanding workforce around the globe,
and the employees at these facilities are very talented.”

                    2009 Actions by Country

The following plants are expected to close by the end of summer
2009.

In Mexico, the company expects to close its San Pedro, Coahuila,
sewing plant, affecting 1,650 employees.

In the United States, the company expects to close its knit-fabric
textile plant in Eden, N.C., affecting approximately 600
employees.

Winston-Salem, North Carolina-based Hanesbrands Inc. --
http://www.hanesbrands.com/-- markets innerwear, outerwear and
hosiery apparel under consumer brands, including Hanes,
Champion, Playtex, Bali, Just My Size, barely there and
Wonderbra.  The company designs, manufactures, sources and sells
T-shirts, bras, panties, men's underwear, children's underwear,
socks, hosiery, casual wear and active wear.  Hanesbrands has
approximately 50,000 employees in 24 countries, including
Dominican Republic, El Salvador, Mexico, Puerto Rico, India and
China.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Nov. 29, 2007, Standard & Poor's Ratings Services revised its
ratings outlook for intimate apparel and activewear maker
Hanesbrands Inc. to positive from stable.  At the same time,
existing ratings on the company, including the 'B+' corporate
credit rating, were affirmed.



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

DIOMED HOLDINGS: Plan Goes to Creditors for Confirmation Vote
-------------------------------------------------------------
Bill Rochelle of Bloomberg News reports that the United States
Bankruptcy Court for the District of Massachusetts will convene a
hearing on Nov. 4, 2008, to consider confirmation of the
liquidating Chapter 11 plan of Diomed Holdings, Inc., and its
debtor-affiliate Diomed, Inc.

Diomed obtained permission from the Court in June 2008 to sell its
assets for US$8 million to AngioDynamics Inc. plus the assumption
of specified liabilities.  The Debtors are now holding US$7.7
million for distribution to creditors, Mr. Rochelle says, citing
the disclosure statement approved on Sept. 18 by the Court.

The Plan provides for a 20.6% recovery for unsecured creditors.

A distribution to unsecured creditors was made possible by a
settlement of a US$5.7 million claim of secured debenture
holders who agreed to take US$4.7 million, according to the
report.

Another creditor asserting a US$40 million claim agreed to accept
an unsecured claim for US$3 million and a claim of US$300,000
to be paid in cash, according to the report.

                     About Diomed Holdings

Based in Andover, Massachussetts, Diomed Holdings Inc. (AMEX:
DIO) -- http://www.evlt.com/and  http://www.diomedinc.com/--   
develops and commercializes minimal and micro-invasive medical
procedures that use its proprietary laser technologies and
disposable products.  Diomed's EVLT(R) laser vein ablation
procedure is used in varicose vein treatments.  Diomed also
provides photodynamic therapy for use in cancer treatments, and
dental and general surgical applications.  Diomed Holdings has
no assets other than its 100% ownership in Diomed Inc., its
operating unit.  Diomed Inc. owns 100% of Diomed Ltd. in the
United Kingdom and Diolaser Mexico SA de CV in Mexico.  The
company also has an affiliate in Asia through Diomed Hong Kong.

The company and its affiliate, Diomed Inc., filed for Chapter 11
protection on March 14, 2008 (Bankr. D. Mass. Case Nos. 08-40750
and 08-40749).  Douglas R. Gooding, Esq., at Choate Hall &
Stewart LLP, is the Debtors local counsel and McGuireWoods LLP
is its general counsel.  Goulston & Storrs P.C. is counsel to
the Official Committee of Unsecured Creditors.  The company's
schedules show total assets of US$19,936,479 and total
liabilities of US$14,743,485.

In connection with the Chapter 11 filings, Diomed Ltd. filed for
Administration under the laws of the United Kingdom in the
Cambridge County Court.  Steven Mark Law of Ensors was named as
administrator.


EMPRESAS ICA: Flour Joint Venture Bags Contract From Pemex
----------------------------------------------------------
ICA Fluor, the industrial construction joint venture of Fluor
Corporation and Empresas ICA, S.A.B. de C.V., was awarded a
contract by Pemex Exploration and Production for the engineering,
procurement and construction of a Maya crude oil dehydration
system.  The full US$45 million contract value will be booked in
the third quarter of 2008.

The project includes the modification of two existing storage
tanks in the Dos Bocas marine terminal in the state of Tabasco.  
ICA Fluor will be responsible for converting the two 500,000-
barrel storage tanks into first-stage “gun-barrel”-type
dehydrators.  The project is being executed over a 180-day
schedule.

Headquartered in Irving, Texas, Fluor Corporation --
http://www.fluor.com/-- provides services on a global basis in  
the fields of engineering, procurement, construction, operations,
maintenance and project management.  Fluor is a FORTUNE 500
company with revenues of US$16.7 billion in 2007.

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.


FEDERAL-MOGUL: Restructuring Plan Includes 4,000 Workforce Cut
--------------------------------------------------------------
Federal-Mogul Corporation disclosed a restructuring plan designed
to improve operating performance and respond to challenging
conditions in the worldwide automotive market.  The plan, when
combined with  other workforce adjustments, is expected to reduce
the company's worldwide workforce by approximately 4,000
positions or 8%.  The planned actions are expected to occur as
a result of several initiatives designed to streamline business
processes, consolidate or close selected locations, and reduce
general and administrative staffing.  

The company is not disclosing the specific sites at this time,
pending further evaluation and consultations with appropriate
parties.  The restructuring initiatives will begin during
September 2008 and continue into 2009 with several phases of
implementation.

Preliminary cost estimates of the restructuring program are
US$60 million to US$80 million through the end of 2009.

"We are taking actions in response to a downturn in regional
markets and global industry outlook," Jose Maria Alapont, Federal-
Mogul President and CEO, said.  "We recognize this is a difficult
decision, yet these measures are required to prepare the company
for the increasingly challenging automotive environment.  The
efficiencies gained as a result of these initiatives will
strengthen Federal-Mogul's competitive position and help assure
the company's future as we continue to implement our sustainable
global profitable growth strategy,"

                       About Federal-Mogul

Federal-Mogul Corporation -- http://www.federal-mogul.com/--
(OTCBB: FDMLQ) is a worlwide supplier, serving the world's
foremost original equipment manufacturers of automotive, light
commercial, heavy-duty, agricultural, marine, rail, off-road and
industrial vehicles, as well as the worldwide aftermarket.  
Founded in Detroit in 1899, the company is headquartered in
Southfield, Michigan, and employs 45,000 people in 35 countries.  
Aside from the U.S., Federal-Mogul also has operations in other
locations which includes, among others, Mexico, Malaysia,
Australia, China, India, Japan, Korea, and Thailand.

The Company filed for chapter 11 protection on Oct. 1, 2001
(Bankr. Del. Case No. 01-10582).  Lawrence J. Nyhan Esq., James F.
Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown &
Wood, and Laura Davis Jones Esq., at Pachulski, Stang, Ziehl &
Jones, P.C., represent the Debtors in their restructuring efforts.
When the Debtors filed for protection from their creditors, they
listed US$10.15 billion in assets and US$8.86 billion in
liabilities.

Federal-Mogul Corp.'s U.K. affiliate, Turner & Newall, is based at
Dudley Hill, Bradford.  Peter D. Wolfson, Esq., at Sonnenschein
Nath & Rosenthal; and Charlene D. Davis, Esq., Ashley B. Stitzer,
Esq., and Eric M. Sutty, Esq., at The Bayard Firm represent the
Official Committee of Unsecured Creditors.

On March 7, 2003, the Debtors filed their Joint Chapter 11 Plan.
They submitted a Disclosure Statement explaining that plan on
April 21, 2003.  They submitted several amendments and on June 6,
2004, the Bankruptcy Court approved the Third Amended Disclosure
Statement for their Third Amended Plan.  On July 28, 2004, the
District Court approved the Disclosure Statement.  The estimation
hearing began on June 14, 2005.  The Debtors submitted a Fourth
Amended Plan and Disclosure Statement on Nov. 21, 2006, and the
Bankruptcy Court approved that Disclosure Statement on Feb. 6,
2007.  The Fourth Amended Plan was confirmed by the Bankruptcy
Court on Nov. 8, 2007, and affirmed by the District Court on
November 14.  Federal-Mogul emerged from chapter 11 on Dec. 27,
2007.


TERNIUM MEXICO: S&P Affirms BB- Long-Term Corporate Credit Rating
-----------------------------------------------------------------
Standard & Poor's Ratings Services has affirmed its 'BB-' long-
term corporate credit rating on Ternium Mexico S.A. de C.V.  At
the same time, S&P affirmed its national scale (CaVal) 'mxA-'
long-term corporate credit rating on the company.  The outlook is
stable.
     
"The ratings on Ternium Mexico (formerly Grupo Imsa S.A.B. de
C.V.) reflect the company's heavy capital expenditure program and
the highly cyclical and capital-intensive nature of the steel
industry.  The ratings also account for the company's above-
average operating efficiency, its relatively low leverage, its
vertical integration, and its leading market position in Mexico,"
said S&P's credit analyst Juan Pablo Becerra.
     
Ternium Mexico, which generated 12-month revenues of US$3.7
billion as of June 30, 2008, manufactures steel products, such as
hot rolled coils and sheets, cold rolled coils and sheets, rebar
and wire rod, tubular products, and processed steel products
including galvanized and prepainted steel.

Ternium Mexico merged with Hylsamex S.A. de C.V., on Jan. 21,
2008.  Through this transaction, Ternium Mexico consolidated most
of its steel operations in Mexico under one company.  The merger
provides full vertical integration from iron ore mining to coated
steel, which is reflected on its 12-month EBTIDA margin
improvement to 22.5% as of June 30, 2008, from 11.1% as of year-
end 2007 -- however this will require higher capital expenditures.  
S&P believes that Ternium Mexico's capital expenditures will be
around US$1 billion in each of the next four years. This will
enable Ternium Mexico to increase its capacity for hot and cold
rolling and coated steel, and improve its mine preparation for
higher production and maintenance.
     
As a result of the aforementioned merger, Ternium Mexico's debt
increased to US$2.9 billion as of March 31, 2008 (and will likely
remain at this level for the next two years) from US$1.5 billion
as of Sept. 30, 2007.  Although key financial ratios deteriorated
significantly after the merger, S&P believes that the year-end
2008 ratios will improve once the company fully consolidates
Hylsamex's figures.  Although S&P believes that the total debt-to-
EBITDA, interest coverage, and funds from operations-to-total debt
ratios will be about 2.0, 10, and 35%, respectively, by year-end
2008, the high capital expenditure program for the next five years
could lead to refinancing risk in 2010.  Additionally, S&P expects
some volatility in the company's operating performance, given that
a significant part of its sales in Mexico are realized at spot
prices.
     
"The stable outlook reflects our expectation that Ternium Mexico
will maintain its strong business position in Mexico and increase
its capacity to maintain its strong growth.  S&P could raise the
rating if the company reduces and maintains its total debt-to-
EBITDA ratio at less than 2.0, and if it strengthens its business
risk profile by increasing its geographic diversification.  On the
other hand, S&P could lower the rating if the company's
profitability decreases to an EBITDA margin below 15%, which could
lead to a debt-to-EBITDA ratio that exceeds 4.0," Mr. Becerra
added.

Headquartered in San Nicolas de los Garza, Mexico, Ternium Mexico
SA de CV (f.k.a. Grupo Imsa S.A.B. de C.V.) --
http://www.grupoimsa.com-- is a holding company for Luxembourg-
based Ternium S.A.  Ternium Mexico's products include galvanized
metal, painted metal, aluminum for construction, glass fiber and
painted laminates.



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

HOME INTERIORS: Details Plans to Split Up; Officers to Submit Bids
------------------------------------------------------------------
Brendan M. Case of The Dallas Morning News reported that
Carrollton-Tex. based Home Interiors & Gifts Inc. said Monday that
it plans to split itself up. The report also said that executives
at the firm are expected to submit bids for some of the company's
assets.

"Parts of this thing are probably worth more than the whole," said
William Snyder, the company's chief restructuring officer.

Mr. Snyder said that the new plan could spell more layoffs at the
company's headquarters.

Under the new plan, the company's U.S., Canada and Puerto Rico
business assets will be sold as as single unit. According to Mr.
Case, a group connected with Robin Crossman, the company's
president and chief executive, will bid for some of these assets.

The company's Mexican unit will be offered separately. Domistyle
Inc., a Dallas manufacturer and distributor of home fragrances and
décor accessories, will be offered as an independent company. The
Laredo Candle unit will be offered as a separate entity, although
it may be included in the Domistyle sale.

Mr. Snyder said Home Interiors' largest shareholder and creditor,
Highland Capital Management LP of Dallas, supports the plan.

In a press release dated Sept. 22, 2008, the company disclosed
that it has requested the U.S. Bankruptcy Court for the Northern
District of Texas for authority to employ the investment banking
firm Houlihan Lokey Howard & Zukin Capital, Inc. to manage the
sale process.

                     About Home Interiors

Headquartered in Carrollton, Texas, Home Interiors & Gifts, Inc.
-- http://www.homeinteriors.com/-- manufactures, imports and        
distributes indoor and outdoor home decorative accessories.  It
was founded by Mary Crowley in 1957.  Through its affiliates,
the company has a significant presence in Mexico, Puerto Rico,
and Canada.  Annual revenue in 2007 reached US$300 million.  
When Mary Crowley, died in 1986, her son, Don Carter continued the
business operation nearly debt-free.  In a leveraged transaction
in 1998, private equity firm of Hicks, Muse, Tate, and Furst
acquired 66% of the parent company, which resulted in the
imposition of more than US$500 million in debt on the Debtors.  In
the face of decreased sales and increased debt load, bondholders
canceled their debts in February 2006 in exchange for receiving
most of the outstanding equity of the Debtors.

About 40% of the goods the Debtors sell are now acquired from
manufacturers in China.  In the last decade, sales volume in the
U.S. has waned, but the Debtors reported that sales in Mexico
and Puerto Rico significantly increased.

The company and six of its affiliates filed for Chapter 11
protection on April 29, 2008 (Bankr. N.D. Tex. Lead Case No.08-
31961).  Andrew E. Jillson, Esq., Cameron W. Kinvig, Esq.,
Lynnette R. Warman, Esq., and Michael P. Massad, Jr., Esq., at
Hunton & Williams, LLP, represent the Debtors in their
restructuring efforts.  The U.S. Trustee for Region 6 has
appointed seven creditors to serve on an Official Committee
of Unsecured Creditors.  Richard A. Lindenmuth, at Boulder
International LLC, is designated as CRO.  Munsch Hardt Kopf &
Harr PC represents the Committee in these cases.  When the
Debtors file for protection against their creditors, they
listed assets of between US$100 million and US$500 million and the
same range of debts.


HOME INTERIORS: Taps Houlihan Lokey to Sell Operating Assets
------------------------------------------------------------
Home Interiors & Gifts Inc. will seek approval from the U.S.
Bankruptcy Court, Northern District of Texas, to sell the
company's operating entities.  The board of directors determined
that a sale of assets at market value will yield the highest and
best return for stakeholders.  

The company has petitioned the Court for approval to employ
investment banking firm Houlihan Lokey Howard & Zukin Capital Inc.
to manage the sale process.  

The company filed for protection under Chapter 11 of the U.S.
Bankruptcy Code April 29, 2008. The company's foreign affiliates
(Home Interiors de Mexico; Home Interiors Services de Mexico; and
Home Interiors and Gifts of Canada, Inc.) and its subsidiary,
Domistyle Inc., were not a part of the Chapter 11 filing.

The company intends to petition the Court to establish bid
procedures and a timeline for the sale of operating entities.  
The company anticipates that these procedures will provide for:

  -- U.S., Canada and Puerto Rico operational assets will be
     offered as a single unit.  Home Interiors & Gifts' president
     and chief executive officer, Robin Crossman, is leading a
     team of investors that is expected to submit a bid to
     purchase certain operational assets of the U.S., Canada and
     Puerto Rico entities.

  -- The company's operations in Mexico, Home Interiors de
     Mexico, will be offered independently.  Fabian Uribarren,
     president of Home Interiors de Mexico, is leading a team
     that is expected to be the lead candidate to purchase this
     entity.

  -- Domistyle Inc. will be offered as an independent company.
     Domistyle is a home dA(C)cor and home fragrance manufacturer
     and distributor based in Dallas, Texas.  The company was
     founded by Brenda Buell and sold to Home Interiors & Gifts
     in 2002.  Ms. Buell, president of Domistyle, is leading a
     team that is expected to be the lead candidate to purchase
     this entity.

  -- The company's Laredo Candle operational assets, based in
     Laredo, Texas, will be offered as a single unit; however,
     it may be included as part of a sale of Domistyle.

"The board believes that an auction process that preserves the
operating units' management teams will ensure the maximum
stability among employees, vendors and customers during the sale
process and will ensure the maximum financial recovery value for
creditors," William K. Snyder, chief restructuring officer, said.

The Court has approved the company's motions to pay employees and
decorating consultants, for the continuation of benefits and
certain incentive programs and for the payment of certain critical
vendors and suppliers to allow the company to continue to conduct
business operations while in Chapter 11.

                     About Home Interiors

Headquartered in Carrollton, Texas, Home Interiors & Gifts, Inc.
-- http://www.homeinteriors.com/-- manufactures, imports and       
distributes indoor and outdoor home decorative accessories.  It
was founded by Mary Crowley in 1957.  Through its affiliates,
the company has a significant presence in Mexico, Puerto Rico,
and Canada.  Annual revenue in 2007 reached US$300 million.  When
Mary Crowley, died in 1986, her son, Don Carter continued the
business operation nearly debt-free.  In a leveraged transaction
in 1998, private equity firm of Hicks, Muse, Tate, and Furst
acquired 66% of the parent company, which resulted in the
imposition of more than US$500 million in debt on the Debtors.  In
the face of decreased sales and increased debt load, bondholders
canceled their debts in February 2006 in exchange for receiving
most of the outstanding equity of the Debtors.

About 40% of the goods the Debtors sell are now acquired from
manufacturers in China.  In the last decade, sales volume in the
U.S. has waned, but the Debtors reported that sales in Mexico
and Puerto Rico significantly increased.

The company and six of its affiliates filed for Chapter 11
protection on April 29, 2008 (Bankr. N.D. Tex. Lead Case No.08-
31961).  Andrew E. Jillson, Esq., Cameron W. Kinvig, Esq.,
Lynnette R. Warman, Esq., and Michael P. Massad, Jr., Esq., at
Hunton & Williams, LLP, represent the Debtors in their
restructuring efforts.  The U.S. Trustee for Region 6 has
appointed seven creditors to serve on an Official Committee of
Unsecured Creditors.  Richard A. Lindenmuth, at Boulder
International LLC, is designated as CRO.  Munsch Hardt Kopf &
Harr PC represents the Committee in these cases.  When the
Debtors file for protection from their creditors, they listed
assets of between US$100 million and US$500 million and the same
range of debts.



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

PETROZUATA FINANCE: S&P Withdraws Debt Ratings at PDVSA's Request
-----------------------------------------------------------------
Standard & Poor's Ratings Services has withdrawn its 'B' bond debt
ratings on Petrozuata Finance Inc., a heavy oil production and
upgrading project in the Bolivarian Republic of Venezuela (BB-
/Stable/B) at the request of the project's owner, Petroleos de
Venezuela S.A. (PDVSA; BB-/Stable/--).  

Petroloes de Venezuela successfully tendered for nearly 98% of
Petrozuata's bonds, a process that was completed last week and
that was expected following its successful tendering of the debt
of the Cerro Negro and Ameriven heavy oil upgrade projects in late
2007.

Petrozuata Finance Inc. is a heavy oil production and upgrading
project in Venezuela.


* VENEZUELA: Research & Markets Provides 2008 Industry Outlook
--------------------------------------------------------------
Research and Markets has announced the addition of the "2008
Venezuela Industry & Market Outlook" report to their offering.

The 2008 Venezuela Industry & Market Outlook report is the leading
annual publication that describes over 100 major Venezuelan
industries and 500+ minor industries.  Published each year in
February the Outlook report provides the most current and accurate
estimates of the size of the largest manufacturing, retail,
wholesale and services industries in Venezuela.

With over 200 pages, the National edition of the 2008 Venezuela
Industry & Market Outlook features:

  -- 2008 establishments, employment and sales totals for each
     industry
  -- 2009 forecast establishments, employment and sales totals
  -- 5-year trend establishments and sales totals
  -- Industry financial ratios such as sales per employees, sales
     per establishment and employees per establishment
  -- 2007 establishments and sales totals for 500+ minor
     industries
  -- Industry definitions and descriptions

Key Topics Covered:

Industries covered in the report include:

  -- Single-Family Housing Construction Industry
  -- Plumbing & Heating & A/C Contractors
  -- Electrical Contractors Industry
  -- Carpentry Contractors Industry
  -- Breakfast Cereal Manufacturing Industry
  -- Frozen Food Manufacturing Industry
  -- Cookie Cracker & Pasta Mfg. Industry
  -- Snack Food Manufacturing Industry
  -- Breweries & Beer-Making Industry
  -- Wineries & Wine-Making Industry
  -- Distilleries & Alcohol-Making Industry
  -- Mens & Boys Apparel Mfg. Industry
  -- Womens & Girls Apparel Mfg. Industry
  -- Paper Mills Industry
  -- Computer & Software Stores Industry
  -- Home Centers Industry
  -- Hardware Stores Industry
  -- Grocery Stores Industry
  -- Beer & Wine & Liquor Stores Industry
  -- Pharmacies & Drug Stores Industry
  -- Gas Stations with Convenience Stores
  -- Mens Clothing Stores Industry
  -- Womens Clothing Stores Industry
  -- Family Clothing Stores Industry
  -- Offices of Real Estate Agents & Brokers
  -- Real Estate Property Managers Industry
  -- Offices of Lawyers Industry
  -- Architectural Services Industry
  -- Engineering Services Industry
  -- Interior Design Services Industry
  -- Graphic Designs Services Industry
  -- Computer Systems Designs Services Industry
  -- Management Consulting Services Industry
  -- Advertising Agencies Industry
  -- Public Relations Agencies Industry
  -- Direct Mail Advertising Industry
  -- Marketing Research & Public Opinion Polling
  -- Colleges & Universities Industry
  -- Educational Support Services Industry
  -- Offices of Physicians Industry
  -- Offices of Dentists Industry
  -- Home Health Care Services Industry
  -- Medical & Surgical Hospitals Industry
  -- Exam Preparation & Tutoring Industry
  -- Medical Laboratories Industry

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Sept. 23, 2008, that Moody's Investors Service affirmed
Venezuela's B1 global local currency issuer rating in conjunction
with the rating agency's review for upgrade of Venezuela's B1
foreign currency bond ceiling and the government's B2 foreign
currency bond rating.  Essentially, the company's global local
currency issuer rating will not be affected by the sovereign
review.  PDVSA's rating is derived from its baseline credit
assessment of 14 (comparable to B1), which remains unchanged.

The TCR-LA reported on May 9, 2008, Fitch Ratings assigned 'BB-'
long-term foreign currency issuer default ratings to the
Bolivarian Republic of Venezuela's international bond combined
offer -- 15-year, US$2 billion Eurobond (9% coupon) and 20-year,
US$2 billion Eurobond (9.25% coupon).  The ratings are in line
with Venezuela's foreign currency issuer default rating.  The
rating outlook is negative.


* FDI in LatAm & Caribbean Reports US$126.3 Billion in 2007
-----------------------------------------------------------
The United Nations Conference on Trade and Development (UNCTAD),
as cited by Earth Times, disclosed that Foreign Direct Investment
(FDI) in Latin America and the Caribbean reached a record US$126.3
billion in 2007.  UNCTAD expected the figure to continue to rise
in 2008.

According to Earth Times, Brazil, Mexico, Chile and Argentina
received a combined 67% of the inflow, with Brazil alone claiming
three out of every 10 dollars that arrived in the region.

In total, South America obtained US$72 billion in FDI in 2007 -- a
figure that is larger than the combined gross domestic products of
Bolivia, Ecuador and Uruguay, Earth Times says.

Central America and the Caribbean, aside from tax havens, saw an
increase in FDI received to US$34 billion, but the UNCTAD report
warned that this might be at risk in the face of the ongoing
credit crisis in the United States, Earth Times adds.

The report relates that Brazil alone received 28% of FDI in the
region, followed by Mexico at 21%, Chile at 11%, the Cayman
Islands at 9%, Colombia at 7% and Argentina at 4%.

The rise in investment was tied to the high prices of commodities,
the report says, citing the UNCTAD.

According to the organization, some Latin American economies are
receiving hardly any foreign investment, notably Bolivia, El
Salvador and Nicaragua, the report notes.

A study by the World Bank disclosed that with the exceptions of
Chile and Colombia, spending on roadbuilding, energy supply and
ports has fallen sharply since 1980, with Argentina and Brazil
lagging furthest behind, the report states.

Report shows that this failing in turn hampers the region's export
capacity.  Existing infrastructure can hardly bear the surge in
exports from US$437 billion in 2003 to an estimated US$750 billion
in 2008.

Despite the region's economic growth, the report says, at least 40
million people continued to live in poverty in Latin America and
the Caribbean.


* Natural Gas Alternative for Central America Costs US$1.55BB
-------------------------------------------------------------
A study to draw up a strategy to introduce natural gas to Central
America has identified a project that would cost an estimated
US$1.55 billion, David Casallas of Business News Americas reports,
citing an official from the project's workgroup.

Mexico's energy ministry (Sener) is the workgroup's overall
coordinator and IDB the technical secretary, the report says.  
Other members include government officials from Mexico, Central
America and Colombia.

BN Americas reports that the project supplies gas via storage and
regasification terminals and pipelines.  The Central American
Electrification Council (CEAC) has recommended the region look at
gas-fired power generation to help reduce countries' oil bills.

One terminal would be built near La Union port in El Salvador and
supply gas through a 910km, 24 and 20-inch pipeline to San
Salvador, Guatemala City, Tegucigalpa, San Pedro Sula and Managua,
BN Americas quotes the official as saying.  Limon port in Costa
Rica would be home to the other terminal, which would supply gas
through a 698km, 20 and 18-inch pipeline to capital San Jose and
Panama City.

A workgroup meeting is pending where each country will define its
position on the study's results and decide the project's next
steps, the official added, the report relates.

If the project advances, an international framework treaty would
have to be signed, a developer selected and a decision made
whether the project would be carried out under a public-private
partnership, among other tasks, according to the official, the
report adds.

The initiative falls under the Mesoamerican energy integration
program (PIEM).



                            ***********

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 V. Profetana, Rizande de los Santos,
Pamella Ritah K. Jala, and Melanie C. Pador, 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 * * *