TCRLA_Public/081001.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

            Wednesday, October 1, 2008, Vol. 9, No. 195

                            Headlines

A R G E N T I N A

CLINICA MARIA: Proofs of Claim Verification Deadline Is October 31
COOPERATIVA BUENOS: Trustee to File Individual Reports on Feb. 10
MC MEAT: Proofs of Claim Verification Deadline Is December 1
PANAMERICANA EXPORTADORA: Files for Reorganization in Court
RAF ARGENTINA: Proofs of Claim Verification Deadline Is Nov. 12

RECOLETO SA: Trustee Verifying Proofs of Claim Until November 6
TYSON FOODS: Board Adds Brad Sauer as Director Member


B A R B A D O S

* BARBADOS: Businessman Criticizes Plan to Raise Chicken Prices
* BARBADOS: Unemployment Figures Rise to 8.6% in June 2008


B E L I Z E

* BELIZE: Reaches Oil Exploration Deal With Taiwan


B E R M U D A

KILN LTD: Will Hold Final Shareholders Meeting on October 31
KILN REINSURANCE: Holds Final Shareholders Meeting on Oct. 31


B R A Z I L

BANCO NACIONAL: Grants BRL70.5 Million Financing for PAC Work
BANCO NACIONAL: Opens New Department to Deal in Corporate Affairs
CIA. SIDERURGICA: Reopens Share Purchase Program
CIA. SIDERURGICA: 3-Month Delivery Delay Worries Analyst
GERDAU SA: NorthAm Sales Likely to Drop 15%, Brokerage Says

SADIA SA: Committees Conduct Audits and Evaluations on Firm


C A Y M A N  I S L A N D S

ANDOVER CAPITAL: Holds Final Shareholders Meeting on Oct. 3
ENEX ATS: Will Hold Final Shareholders Meeting on Oct. 3
LIA FAIL: Holding Final Shareholders Meeting on October 6
QUATTRO MULTI-STRATEGY: Final Shareholders Meeting Is on Oct. 3


C H I L E

WARNER MUSIC: Names Steven Macri as Chief Financial Officer


C O L O M B I A

BANCOLOMBIA SA: Names Ricardo Moreno as Member of Audit Committee
EMPRESAS PUBLICAS: S&P Affirms Foreign Currency ID Rating at BB+


D O M I N I C A N   R E P U B L I C

BANCO DE RESERVAS: Fitch Holds Ratings; Revises Outlook to Stable


M E X I C O

ASARCO LLC: USW Commends DOJ for Objecting to Parent's Plan
BLUE WATER: Court Confirms Amended Joint Plan of Liquidation
BLUE WATER: Court Approves Plan Settlement, Objections Overruled
FEDERAL-MOGUL: Court Bars Creditors from Filing Complaints
LEAR CORP: S&P Lifts US$1 Bil. Facility Issue Level Rating to 'BB'

URBI DESARROLLOS: Fitch Holds BB Currency Issuer Default Ratings


P U E R T O  R I C O

ZAP IMPORT: Wants to Hire Monge Robertin as Restructuring Advisor


V E N E Z U E L A

* VENEZUELA: Oil Revenues Cue S&P to Hold BB-/B Sovereign Ratings

* LatAm Stocks React to Bush's Failed US$700 Billion Bailout Plan


                         - - - - -


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

CLINICA MARIA: Proofs of Claim Verification Deadline Is October 31
------------------------------------------------------------------
The court-appointed trustee for Clinica Maria Auxiliadora S.R.L.'s
bankruptcy proceeding, will be verifying creditors' proofs of
claim until October 31, 2008.

The trustee will present the validated claims in court as  
individual reports on December 16, 2008.  The National Commercial
Court of First Instance in Cordoba, 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 Clinica Maria 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 Clinica Maria's
accounting and banking records will be submitted in court on
March 13, 2009.

The trustee is also in charge of administering Clinica Maria's
assets under court supervision and will take part in their
disposal to the extent established by law.


COOPERATIVA BUENOS: Trustee to File Individual Reports on Feb. 10
-----------------------------------------------------------------
The court-appointed trustee for Cooperativa Buenos Ayres de
Vivienda, Credito y Consumo Ltda.'s bankruptcy proceeding, will
present the validated claims as individual reports in the National
Commercial Court of First Instance No. 8 in Buenos Aires, with the
assistance of Clerk No. 16, on February 10, 2009.

The trustee is verifying creditors' proofs of claim until Nov. 28,
2008.  The trustee will also submit to court a general report
containing an audit of Cooperativa Buenos' accounting and banking
records on March 31, 2009.

The trustee is also in charge of administering Cooperativa Buenos'
assets under court supervision and will take part in their
disposal to the extent established by law.

The debtor can be reached at:

                     Cooperativa Buenos Ayres de Vivienda,
                     Credito y Consumo Ltda.
                     Sarmiento 776
                     Buenos Aires, Argentina


MC MEAT: Proofs of Claim Verification Deadline Is December 1
------------------------------------------------------------
The court-appointed trustee for Mc Meat S.A.'s bankruptcy
proceeding, will be verifying creditors' proofs of claim until
December 1, 2008.

The trustee will present the validated claims in court as  
individual reports on February 6, 2009.  A court in Argentina  
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 Mc Meat 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 Mc Meat's accounting
and banking records will be submitted in court on March 20, 2009.

The trustee is also in charge of administering Mc Meat's assets
under court supervision and will take part in their disposal to
the extent established by law.


PANAMERICANA EXPORTADORA: Files for Reorganization in Court
-----------------------------------------------------------
Panamericana Exportadora y Cia. SA has requested for
reorganization approval after failing to pay its liabilities.

The reorganization petition, once approved by the court, will
allow Panamericana Exportadora 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. 8 in Buenos Aires.  Clerk No. 15 assists the court in
this case.


RAF ARGENTINA: Proofs of Claim Verification Deadline Is Nov. 12
---------------------------------------------------------------
The court-appointed trustee for Raf Argentina S.R.L.'s bankruptcy
proceeding, will be verifying creditors' proofs of claim until
November 12, 2008.

The trustee will present the validated claims in court as  
individual reports.  A court in Argentina 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
Raf Argentina 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 Raf Argentina's
accounting and banking records will be submitted in court.

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

The trustee is also in charge of administering Raf Argentina's
assets under court supervision and will take part in their
disposal to the extent established by law.


RECOLETO SA: Trustee Verifying Proofs of Claim Until November 6
---------------------------------------------------------------
Maria Taboada, the court-appointed trustee for Recoleto S.A.'s
reorganization proceeding will be verifying creditors' proofs of
claim until November 6, 2008.

Ms. Taboada will present the validated claims in court as  
individual reports.  The National Commercial Court of First
Instance No. 1 in Buenos Aires, with the assistance of Clerk
No. 2, 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 Recoleto S.A. 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 Recoleto S.A.'s
accounting and banking records will be submitted in court.

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

Creditors will vote to ratify the completed settlement plan  
during the assembly.

The debtor can be reached at:

                     Recoleto S.A.
                     Dante 40
                     Buenos Aires, Argentina

The trustee can be reached at:

                     Maria Taboada
                     Ezeiza 264
                     Buenos Aires, Argentina


TYSON FOODS: Board Adds Brad Sauer as Director Member
-----------------------------------------------------
Tyson Foods Inc.'s board of directors has named Brad T. Sauer as
newest members of the board.

Mr. Sauer, executive vice president, 3M Health Care Business, is
now one of 10 Tyson directors and one of six independent members
of the board.

"Brad's selection is the result of an extensive search and
interview process by our nominating committee," said Tyson
Chairman, John Tyson.  "We believe his diverse background with 3M
will make him an excellent addition to our board."

Sauer has been part of 3M, a diversified technology company, since
1981.  He is currently responsible for 3M's worldwide healthcare
business, including such divisions as infection prevention, skin &
wound care, dental, orthodontics, food safety, drug delivery and
health information systems.  He has also served in a variety of
other positions such as executive vice president of 3M's Electro
and Communications Business,
president and managing director of 3M Korea and new business
development director of the Commercial Graphics Division.

Mr. Sauer, who is 49 years old, has a bachelor's degree in
mechanical engineering from the University of Minnesota.

Headquartered in Springdale, Arkansas, Tyson Foods Inc.
(NYSE:TSN) -- http://www.tysonfoods.com/-- is a processor and
marketer of chicken, beef, and pork. The company makes a wide
variety of protein-based and prepared food products at its 123
processing plants.  Tyson has approximately 114,000 Team Members
employed at more than 300 facilities and offices in 26 states
and 80 countries.

Tyson's U.S. beef plants are located in Amarillo, Texas; Dakota
City, Nebraska; Denison, Iowa; Finney County, Kansas; Joslin,
Illinois, Lexington, Nebraska and Pasco, Washington. The
company also has a beef complex in Canada, and is involved in a
vertically integrated beef operation in Argentina.

                         *     *     *

As reported in the Troubled Company Reporter-Latin America on
Sept. 17, 2008, Standard & Poor's Ratings Services affirmed the
'BB' corporate credit rating on Tyson Foods Inc. and its wholly
owned subsidiary, Tyson Fresh Meats Inc. and removed the rating
from CreditWatch with negative implications, where S&P had
originally placed it on June 19, 2008.

The TCR-LA reported on April 7, 2008, that Moody's Investors
Service confirmed Tyson Foods, Inc.'s corporate family rating and
probability of default rating at Ba1.  Moody's said the rating
outlook remains negative.



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

* BARBADOS: Businessman Criticizes Plan to Raise Chicken Prices
---------------------------------------------------------------
Trevor Yearwood of Nation News in Barbados writes that the BEPPA
proposed the chicken price hike against the backdrop of increased
cost of feed, as well as higher fuel and electricity costs.  The
Department of Commerce has to determine whether the proposed
increase is justified for it to be implemented.

Hence, Sunrise Chicks managing director, Anthony Spencer, advanced
late September to support his call to freeze chicken prices,
Nation News relates.  Nation News, citing Mr. Spender, reports
that jacking up chicken prices at this time will do more harm than
good saying it will open the way for the government to import
substantial quantities of cheap chicken.  This will result in a
sharp reduction of local farmers' revenues and can even force some
out of business, Nation News adds.

Mr. Spencer also denied a comment by Barbados Egg and Poultry
Producers Association (BEPPA) president Wendell Clarke saying Mr.
Spencer could afford a price freeze because he imported cheaper
bagged feed from Jamaica.

"It's not true," Mr. Spencer told the Daily Nation, Nation News
reports.  He argued that he doesn't import feed and doesn't have
an agent to import feeds for him.  He added that the buys his feed
locally, amounting to a minimum of 2 400 30-kilogram bags a month.  
However, Mr. Spencer agreed that Barbados is a free market with no
restrictions on importing cheaper feed.

According to Nation News, Mr. Spencer clashed with members of
BEPPA board of directors late last month over the issue of a
proposed chicken price hike.  He stressed that "No sensible
government allows chicken prices to be raised at this time of the
year, close to Christmas" when poor people eat chicken.  He
asserted that the government is already pressured over rising
prices.  He said that it is better to maintain the prices as feed
prices are expected to go down.  According to Mr. Spencer, "It
should be just a matter of time before [Manufacturing Company
Ltd.] brings [feed] prices down.  He pointed that feed and chicken
prices are falling in Jamaica.


* BARBADOS: Unemployment Figures Rise to 8.6% in June 2008
----------------------------------------------------------
Nation News in Barbados reports that the country's unemployment
rate stood at 8.6% at the end of June, a hike on the 7.9% recorded
at the end of March.  The jobless rate was also up on the 8.1%
logged at the end of June 2007.

According to a statement by the Research and Planning Unit in the
Economic Affairs Division of the Ministry of Finance, Economic
Affairs and Energy, some 133 500 people were employed at the end
of last June.  The good news, Nation News relates, is that this
represents an increase of 200 people in jobs, compared to numbers
for April to June 2007.  However, with more people entering the
labor force, those gains have lost a little of the gloss.

"The total labor force increased to 146,000 persons, some 1,000
persons more than the 145,000 persons recorded in the second
quarter of 2007," the statement explained, Nation News notes.  
"During this period the total number of unemployed persons was
12,000, some 800 persons more than in the corresponding quarter of
2007."



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

* BELIZE: Reaches Oil Exploration Deal With Taiwan
--------------------------------------------------
Jamaica Observer reports that the government of Belize and
Taiwan's Chinese Petroleum Corporation last week sealed a deal to
search for oil in the Caribbean Sea.

According to CPC Spokesman Chu Shao-hua, the company would search
4,800 square kilometres of the ocean, Jamaica Observer says.

The oil exploration agreement with Belize is expected to be signed
this week.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Dec. 26, 2007, Standard & Poor's Ratings Services assigned B long-
and short-term sovereign local and foreign currency ratings on
Belize.  Standard & Poor's also placed 3 sovereign foreign
currency recovery rating and a B+ transfer and convertibility
assessment rating.  S&P said the outlook for these ratings is
stable.



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

KILN LTD: Will Hold Final Shareholders Meeting on October 31
------------------------------------------------------------
Kiln Ltd. will hold its final shareholders meeting on Oct. 31,
2008, at 10:30 a.m. at the offices of Deloitte & Touche, Corner
House, Church & Parliament Streets, 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.

Kiln's shareholders agreed on Sept. 2, 2008, to place the company
into voluntary liquidation under Bermuda's Companies Act 1981.

The liquidator can be reached at:

               Mark W.R. Smith
               c/o Deloitte & Touche
               Corner House, Church & Parliament Streets
               P.O. Box HM 1556
               Hamilton, Bermuda


KILN REINSURANCE: Holds Final Shareholders Meeting on Oct. 31
-------------------------------------------------------------
Kiln Reinsurance Ltd. will hold its final shareholders meeting on
Oct. 31, 2008, at 10:00 a.m. at the offices of Deloitte & Touche,
Corner House, Church & Parliament Streets, 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.

Kiln Reinsurance's shareholders agreed on Sept. 2, 2008, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.

The liquidator can be reached at:

               Mark W.R. Smith
               c/o Deloitte & Touche
               Corner House, Church & Parliament Streets
               P.O. Box HM 1556
               Hamilton, Bermuda



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

BANCO NACIONAL: Grants BRL70.5 Million Financing for PAC Work
-------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social SA has
approved a credit in the amount of BRL70.5 million for the
implementation of the Transmission Line (LT) between Neves 1 and
Mesquita Substations in the East region of the State of Minas
Gerais.  The work is in the scope of Growth-Acceleration Program
(PAC) of the Federal Government.  The program reaches the areas of
thirteen cities and it will link the cities of Contagem and
Santana do Paraiso.  Due to the project, 440 new job opportunities
will be created.

The financing was granted to the Interligacao Eletrica de Minas
Gerais S.A. (IEMG), Special-Purpose Society (SPE) composed by Cia.
de Transmissao de Energia Eletrica Paulista (CTEEP) and Cymi
Holding S.A. BNDES funds earmarked for the project represent 51%
of the total investment.

With a total length of 173 km, LT will have a tension of 500 kV.  
It is expected to create around 440 job opportunities during the
work, being 300 in the construction of LT (that will be divided
into two blocks of 86.5 km each) and 140 in the substations.  From
this total, 60% will be composed of specialized staff and 40% of
local workforce.  The work has an installation license granted by
the Environmental Policy Council (Copam – Conselho Estadual de
Politica Ambiental) of the State of Minas Gerais and it will
earmark 1.1% of the amount of the contract for the purposes of
environmental compensation, according to the decision of the State
Environment System.

Infrastructure - Investments in infrastructure projects, like LT
that will link the cities of Contagem and Santana do Paraíso,
currently represent the main demand of the financing of the
production sector together with BNDES.  The performance of the
last 12 months proves the trend.  During this year, the payments
for this purpose reached BRL33.7 billion (increase of 70%), while
the approvals rose 39%, amounting BRL46.8 billion.  For the
electric power sector, specifically, BRL8.3 billion were destined
only for the first eight months of the year.

                      About Banco Nacional

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

                        *     *     *

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


BANCO NACIONAL: Opens New Department to Deal in Corporate Affairs
-----------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social SA, in order
to better meet growing demands and play a more efficient role in
the Brazilian development, has launch a new unit called Corporate
Management department that will foster the bank’s strengthening,
enabling it to cope with its expanding activities and take on new
responsibilities.

The director heading the department is Luiz Fernando Dorneles, who
has come up through the ranks on a 30-year experience background.  
The Brazilian President setup the department and appointed its
director, publishing this decision on Sept. 26, on the Official
Gazette.

The recently-created department will take care of corporate
affairs, such as information technology and human resources,
allowing greater focus on other works.

Additionally, BNDES faces a huge challenge of successfully
replacing 30% of its old-generation staff employees up to 2012.  
The expertise of a Human Resources department will help overcoming
this challenge.

This process takes place in a scenario of expansion of activities.  
In August YTD 2008, the bank’s disbursements amounted to BRL80.8
billion, and approvals exceeded BRL110 billion, two record
amounts.  For comparison purposes, in 2004 disbursements totaled
BRL40 billion, and 2008 figures represent a 31% growth as compared
to the previous year.

Increasing disbursements take place concurrently with the
expansion, internationalization and a comprehensive portfolio.  
Also, the bank will get involved in strategic actions taken by the
federal government.  The Bank is one of the key players of the
Growth Acceleration Program and develops projects in the public
administration arena.  It has also been playing additional roles
in environment issues and it manages the Amazon
Forest Fund, which has received donations to be applied in actions
to preserve the forest.

                      About Banco Nacional

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

                        *     *     *

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


CIA. SIDERURGICA: Reopens Share Purchase Program
------------------------------------------------
Companhia Siderurgica Nacional S.A. informed its shareholders and
market participants, in light of news recently published by the
press and the reopening of its share repurchase program, that:

1. The company has a conservative financial management policy
relating to its investments and assets.  The purpose of this
policy is to protect its cash flow and balance sheet.  The company
does not have any leveraged transactions relating to fixed income
or foreign exchange derivatives, including transactions relating
to "double indexed" or "target forward" derivatives.  The
objective of eventual foreign exchange derivative transactions is
to hedge against foreign exchange exposures.  The company's
foreign exchange exposure, in the context of the company's
operations, remained immaterial throughout the year.

2. On April 2, 2003, the company entered into an equity swap
transaction.  The transaction has been renewed since then.  The
terms and conditions applicable to the latest renewal are
reflected in a press release (i.e., "fato relevante") dated
July 11, 2008.  Pursuant to the terms and conditions of such
renewal, the company owes to its counterparty a LIBOR-based
interest rate on a notional amount corresponding to the average
price of American Depositary Receipts ("ADRs") representing common
stock of the company, while the counterparty owes the company an
amount corresponding to the appreciation of the ADRs corresponding
to the notional amount and to the dividends allocated to such
ADRs.  Since its inception, the financial result of this
transaction is reported in the notes to the company's financial
statements.  The transactions' aggregate financial result, from
April 2, 2003, to Sept. 26, 2008, corresponds to approximately
US$845 million.

3. The company has a solid financial position and does business
solely with first tier financial institutions.  The company's cash
availability on Sept. 26, 2008, corresponded to approximately
US$1.7 billion.

4. As recently covered by the press, there are negotiations in
progress concerning an eventual sale of an equity interest, or
investment in, Nacional Minerios S.A., a subsidiary of the
company.

               About Companhia Siderurgica Nacional

Headquartered Sao Paolo, Brazil, Companhia Siderurgica Nacional
S.A. (NYSE: SID) -- http://www.csn.com.br/-- produces, sells,  
exports and distributes steel products, like hot-dip galvanized
sheets, tin mill products and tinplate.  The company also runs its
own iron ore, manganese, limestone and dolomite mines and has
strategic investments in railroad companies and power supply
projects.  The group also operates in Brazil, Portugal, and the
U.S.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Sept. 10, 2008, Moody's Investors Service upgraded the senior
unsecured long term debt ratings of Companhia Siderurgica Nacional
and its backed notes from Ba2 to Ba1.

The TCR-LA reported on June 6, 2008, that Standard & Poor's
Ratings Services raised its corporate credit rating on Brazil-
based steelmaker Companhia Siderurgica Nacional to 'BB+' from 'BB'
and removed it from CreditWatch.  S&P had placed the ratings on
CreditWatch with positive implications on May 30, 2008, for better
cash flow protection measures.  The outlook is positive.  At the
same time, S&P raised the corporate credit rating on subsidiary
National Steel SA to 'BB-' from 'B+', with a positive outlook.


CIA. SIDERURGICA: 3-Month Delivery Delay Worries Analyst
--------------------------------------------------------
Analyst Pedro Galdi at SLW Corretora in Sao Paulo said that
Companhia Siderurgica Nacional S.A.'s production at Casa de Pedra
mine of 21Mt iron ore output in late September, is its previous
target for June, Claudio Mendonca writes for BNamericas.  Mr.
Galdi said "That's a three-month delivery delay.  Falling behind
in the company chronogram is worrisome for CSN,"

Mr Galdi, BNamericas relates, warned that "If [the company] can't
get their expansion online they'll wind up losing market share to
competitors such as Usiminas."

Mr. Galdi explained CSN's Casa de Pedra expansion fell behind
schedule due to equipment delivery and permitting delays,
according to BNamericas.

Meanwhile, Banco Prosper analyst Andre Segadilha believes the
delay is not a cause for concern, as such setbacks are quite
normal in operations this size, BNamericas notes.  "Of course the
market would rather see timelines on schedule, but this [delay]
does not result in great changes," Mr. Segadilha, Prosper's chief
analyst of variable income, said in an interview.  He said that
the "delays are under control."

BNamericas notes that CSN had planned to start up the expansion to
21Mt/y from the current 16Mt/y in February 2008.  Further
expansion at Casa de Pedra in Minas Gerais state aims to take
capacity to 40Mt/y, while a third phase is due to expand output at
the mine to 50Mt/y and a fourth stage to 70Mt/y.

               About Companhia Siderurgica Nacional

Headquartered Sao Paolo, Brazil, Companhia Siderurgica Nacional
S.A. (NYSE: SID) -- http://www.csn.com.br/-- produces, sells,  
exports and distributes steel products, like hot-dip galvanized
sheets, tin mill products and tinplate.  The company also runs its
own iron ore, manganese, limestone and dolomite mines and has
strategic investments in railroad companies and power supply
projects.  The group also operates in Brazil, Portugal, and the
U.S.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Sept. 10, 2008, Moody's Investors Service upgraded the senior
unsecured long term debt ratings of Companhia Siderurgica Nacional
and its backed notes from Ba2 to Ba1.

The TCR-LA reported on June 6, 2008, that Standard & Poor's
Ratings Services raised its corporate credit rating on Brazil-
based steelmaker Companhia Siderurgica Nacional to 'BB+' from 'BB'
and removed it from CreditWatch.  S&P had placed the ratings on
CreditWatch with positive implications on May 30, 2008, for better
cash flow protection measures.  The outlook is positive.  At the
same time, S&P raised the corporate credit rating on subsidiary
National Steel SA to 'BB-' from 'B+', with a positive outlook.


GERDAU SA: NorthAm Sales Likely to Drop 15%, Brokerage Says
-----------------------------------------------------------
Gerdau S.A.'s North American sales could fall 15% below this
year's second quarter for at least two or three quarters to come,
Business News Americas reports, citing Brazilian Brokerage Brascan
Corretora.

But despite the ominous signals, the brokerage said it considered
Gerdau's outlook strong overall and that even if North America
falls into a deep recession, the steelmaker would remain stable,
BNAMericas relates.

According to BNAMericas, the brokerage highlighted a 5% quarter-
on-quarter increase in Gerdau's 2Q08 North American sales and a
21% rise in Ebitda margin as evidence the company will remain
stable in the continent.

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).


SADIA SA: Committees Conduct Audits and Evaluations on Firm
-----------------------------------------------------------
Sadia S.A. Disclosed in a regulatory filing that the company, in a
joint action of its Audit Committee and Finance Committee, is
conducting internal and external audits with the support of
specialized professionals contracted for such purposes, as well as
to evaluate the adequacy of such transactions to the company’s
policies.

The liquidation of said transactions occurred with the company’s
own cash, and new credit lines have been raised in order to ensure
the normality of its transactions.  The cash account of the
company on this date is of approximately BRL1.6 Billion.

The company is expected to obtain a two digit growth in 2009, as a
result of investments, which will become operative soon, that is,
units of Lucas do Rio Verde and Vitoria de Santo Antao, in
addition to already concluded expansions in existing units, which
are Varzea Grande, Uberlandia, Brasilia and Toledo.  As soon as
the company concludes its Operational Plan for 2009, it will
release its projections to shareholders and the market.

The company also reported that expected EBITDA in 2008, as
disclosed to the market, is of approximately 11% to 12% of net
revenue.  For 2009, EBITDA value will be confirmed as of
conclusion of the company’s Operational Plan.

In addition, the company expected its 2008 gross income is of
approximately BRL12 billion.

Headquartered in Sao Paulo, Brazil, Sadia S.A. --
http://www.sadia.com-- operates in the agro industrial and food
processing sectors in Brazil and primarily produces a range of
processed products, poultry, and pork.  The company distributes
around 1,000 different products through distribution and sales
centers located in Brazil, China, Japan and Italy.

                         *     *     *


As reported in the Troubled Company Reporter-Latin America on
Sept. 30, 2008, Standard & Poor's Ratings Services placed its
'BB+' long-term corporate credit rating on Brazil-based food
producer Sadia S.A. on CreditWatch with negative implications,
after the company's announcement that it reported losses of BRL760
million upon the liquidation of certain financial transactions.  
The rating on subsidiary Sadia Overseas Ltd.'s US$250 million in
senior unsecured notes was also placed on CreditWatch negative.

At the same time, Moody's Ratings Services downgraded all ratings
related to Sadia S.A. to Ba3 from Ba2 following the announcement
of some BRL760 million in cash losses from positions in currency
forward contracts and counterparty losses in its offshore
investment portfolio.  The ratings remain under review for
possible further downgrade.



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

ANDOVER CAPITAL: Holds Final Shareholders Meeting on Oct. 3
-----------------------------------------------------------
Andover Capital Offshore Partners Ltd. will hold its final
shareholders meeting on Oct. 3, 2008, at 9:45 a.m., at the offices
of Avalon Management Limited, Third Floor, Zephyr House, Mary
Street, P.O. Box 715, Grand Cayman, Cayman Islands.

These matters will be taken up during the meeting:

   1) accounting of the wind-up process, and
   
   2) determining the manner in which the books, accounts and
      documentation of the Company and of the Liquidator should
      be maintained and subsequently disposed.

Andover Capital's shareholder decided on April 25, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

               Avalon Management Limited
               c/o 3rd Floor Zephyr House, Mary Street
               P.O. Box 715
               Grand Cayman, Cayman Islands
               Tel: (+1) 345-946-4422
               Fax: (+1) 345-769-9351


ENEX ATS: Will Hold Final Shareholders Meeting on Oct. 3
--------------------------------------------------------
Enex ATS Holding will hold its final shareholders meeting on
Oct. 3, 2008, at 9:30 a.m., at the registered office of the
Company.

These matters will be taken up during the meeting:

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

Enex ATS' shareholder decided on Aug. 22, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidator can be reached at:

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

Contact for inquiries:

               Anthony Johnson
               Tel: (345) 914-6314

LIA FAIL: Holding Final Shareholders Meeting on October 6
---------------------------------------------------------
Lia Fail Ltd. will hold its final shareholders meeting on Oct. 6,
2008, at 10:00 a.m., at the representative office, C/-Clay Blue,
Murphy Investment Group, Inc., 5185 S. NC 41 Highway, Wallace, NC
28466, USA.

These matters will be taken up during the meeting:

   1) accounting of the wind-up process, and
   
   2) determining the manner in which the books, accounts and
      documentation of the Company and of the Liquidator should
      be maintained and subsequently disposed.

Lia Fail's shareholders agreed on May 2, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidator can be reached at:

               Brewer Ezzell
               c/o C/-Clay Blue
               Murphy Investment Group Inc.
               5185 S. NC 41 Highway
               Wallace, NC 28466 USA
               Tel: (910) 285-1047
               Fax: (910) 284-1048


QUATTRO MULTI-STRATEGY: Final Shareholders Meeting Is on Oct. 3
---------------------------------------------------------------
Quattro Multi-Strategy Offshore Fund Ltd. will hold its final
shareholders meeting on Oct. 3, 2008, at 9:00 a.m., at the
registered office of the Company.

These matters will be taken up during the meeting:

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

Quattro Multi-Strategy's shareholder agreed on Aug. 11, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

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



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

WARNER MUSIC: Names Steven Macri as Chief Financial Officer
-----------------------------------------------------------
Warner Music Group Corp. disclosed in a Securities and Exchange
Commission filing on Sept. 16, 2008, that Lyor Cohen and
Michael Fleisher have each been promoted to Vice Chairman and
Steven Macri has been named Chief Financial Officer.

Mr. Cohen has been named Vice Chairman, Warner Music Group Corp.
and Chairman and CEO, Recorded Music - Americas and the U.K. In
his new position, Mr. Cohen will add oversight of WMG's U.K. and
Latin American recorded music operations to his current
responsibilities in the U.S. and Canada.

Mr. Fleisher has been named WMG's Vice Chairman, Strategy and
Operations. In his new position, Mr. Fleisher will oversee global
corporate strategy and operations and will lead the transformation
of WMG's business models and operational processes.  He will also
continue to lead corporate development as well as the company's
investor relations and information technology departments.

Mr. Macri has been named Executive Vice President and Chief
Financial Officer of WMG. In his new position, he will be
responsible for the company's worldwide financial operations. Mr.
Macri, age 39, has served as WMG's Senior Vice President and
Global Controller since February 2005. Prior to joining WMG, he
held the position of Vice President Finance at Thomson Learning
(now Cengage Learning), which was a division of The Thomson
Corporation.  From 1998 to 2004, Mr. Macri held various financial
and business development positions at Gartner, Inc. including SVP,
Business Planning and Operations and SVP, Controller.

Mr. Macri has entered into an employment agreement with Warner
Music Inc. on July 21, 2008.  The employment agreement, among
other things, includes:

  -- the term of Mr. Macri's employment agreement shall end on
     Dec. 31, 2012; and

  -- upon elevation to the position of Chief Financial Officer,
     an annual base salary of US$600,000 and a target bonus of
     US$600,000.

In the event the Company terminates his employment agreement for
any reason other than for cause or if Mr. Macri terminates his
employment for good reason, each as defined in the agreement, Mr.
Macri will be entitled to severance benefits equal to:

  -- US$1,200,000;

  -- a pro-rated target bonus; and

  -- continued participation in the Company's group health and
     life insurance plans for up to one year after termination.

The employment agreement also contains standard covenants relating
to confidentiality and a one-year post-employment non-solicitation
covenant.

In addition, pursuant to the terms of Mr. Macri's employment
agreement, he received an award of 175,000 stock options of WMG.
The option grant was made under WMG's Amended and Restated 2005
Omnibus Award Plan.  Pursuant to WMG policy, the options were
granted on Aug. 15, 2008, the first 15th of the month following
approval of the grant by the Compensation Committee and execution
of the employment agreement, and the exercise price of the options
is the "fair market value" of the WMG common stock as defined in
the Plan, which is the closing price on the NYSE on the grant date
or the last preceding date if there is no such sale on that date.
The exercise price of the options is US$7.56 per share, which was
the closing price on Aug. 15, 2008.  The options will generally
vest 25% a year over four years (subject to continued employment)
and will have a term of 10 years.

                     About Warner Music

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

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

                       *     *     *

As reported in the Troubled Company Reporter-Latin America on
Aug. 19, 2008, Fitch Ratings affirmed Warner Music Group Corp.'s
Issuer Default Rating at BB-.

The TCR-LA reported on June 2, 2008, that Standard & Poor's Rating
Services affirmed its ratings on New York City-based Warner Music
Group Corp., including its 'BB-' corporate credit rating, based on
its expectation that the company will have sufficient resources to
meet its financial covenant step-downs over the near term.  

S&P removed all ratings from CreditWatch with negative
implications, where they were placed on Feb. 22, 2007.  At the
same time, S&P raised its rating on the company's US$1.65 billion
senior secured credit facility to 'BB' from 'BB-' and revised the
recovery rating to '2' from '4'.  The '2' recovery rating
indicates S&P's expectation that lenders can expect substantial
(70%-90%) recovery in the event of a payment default.  The outlook
is negative.

Warner Music reported total assets of US$4.5 billion, total
liabilities of US$4.6 billion, and US$99 million in stockholders'
deficit as of June 30, 2008.



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

BANCOLOMBIA SA: Names Ricardo Moreno as Member of Audit Committee
-----------------------------------------------------------------
Bancolombia S.A. Board of Directors has appointed Ricardo Sierra
Moreno as a new member of Bancolombia's Audit Committee at a
meeting.  Mr. Sierra Moreno has been an independent member of
Bancolombia's Board of Directors since 1996.

Mr. Sierra Moreno will be occupying the position left vacant
following the resignation of Carlos Raul Yepes from the Audit
Committee.  Mr. Yepes will continue to be a member of
Bancolombia's Board of Directors.

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

                            *     *     *

This concludes the Troubled Company Reporter-Latin America's
coverage of Bancolombia S.A. until facts and circumstances, if
any, emerge that demonstrate financial or operational strain or
difficulty at a level sufficient to warrant renewed coverage.


EMPRESAS PUBLICAS: S&P Affirms Foreign Currency ID Rating at BB+
----------------------------------------------------------------
Fitch Ratings has affirmed Empresas Publicas de Medellin E.S.P.'s
foreign and local currency Issuer Default Ratings at 'BB+' and
'BBB-', respectively.  The Rating Outlook is Stable.

Empresas Publicas' ratings reflect the company's leading and
strong market position as Medellin's metropolitan area utility
services provider.  The ratings also reflect the company's solid
financial profile and its aggressive growth strategy, both, inside
the country and abroad.  The company's ratings also incorporate
the company's exposure to regulatory changes and political
interference.  Empresas Publicas is a publicly owned company that
has been historically exposed to political interference, however,
this risk is somewhat mitigated as the company and the
municipality of Medellin, the company's sole owner, voluntarily
signed a public letter of intent where the municipality limits its
interference in the company to only its legal channels.

Although, municipality intervention is currently limited, the
company has historically chosen to charge lowered than allowed
tariff for its electricity distribution business.  This might not
be the case in the future as tariff adjustment are expected to
close the gap between the regulatory set tariff and that assumed
by the company.

Empresas Publicas' strong competitive position stems from the
company's natural monopoly position as Medellin's power and
natural gas service provider.  The company's competitive position
is also bolstered by its large and diversified electricity
generation assets.  The company is one of the largest generation
company in the country in terms of installed capacity and benefits
from both hydro and thermo electric generation capacity.  
Furthermore, the company presents a strong market position in the
water and wastewater sector as well as in the telecom industry in
the metropolitan area of Medellin and the country.  

The company's assets portfolio provides the company with a stable
and predictable cash flow stream that for the most part comes from
regulated income.  Going forward, its strategy aims to increase
the company's revenue significantly through 2015, both in and out
of Medellin and Colombia.

A large capital expenditure program is expected to be carried on
by the company in order to support its aggressive growth strategy.  
This capital investment program holds the potential to pressure
credit quality.  However, the company's current credit profile is
characterized by low leverage, healthy EBITDA margins and strong
liquidity and interest coverage.  Empresas Publicas' EBITDA has
been steadily increasing during the past five years to US$661
million as of the end of 2007 from US$428 million as of year-end
2003.  

Although 90% of the company's debt is denominated in hard
currency, the company has only 38% of debt exposed to foreign
exchange risk as the company has hedged most of its debt.  Of the
US$617 million of debt reported by the company at June 30, 2008,
18% is short-term debt, 67% long-term and the 15% balance is off-
balance sheet debt, mostly guarantees of subsidiaries debt.

The company's ratings are considered strong within the rating
category.  Going forward, Empresas Publicas is expected to
increase leverage in order to finance its somewhat aggressive
expansion strategy, which includes expectation of growth in and
out of Colombia.  Over the medium term, the company is expected to
participate in bidding process for acquisition of power companies
in Latin America that fit the company's growth strategy.

Headquartered in Medellin, Colombia, Empresas Publicas de Medellin
E.S.P. (a.k.a. EPM) -- http://www.eeppm.com/-- was founded in  
1955 and has several different facets to the company including
water, energy, and natural gas.  The company is owned by the city
of Medellin and is the 9th biggest company based on income and the
second-most assets after Ecopetrol in Colombia.



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

BANCO DE RESERVAS: Fitch Holds Ratings; Revises Outlook to Stable
-----------------------------------------------------------------
Fitch Ratings affirmed Banco de Reservas de la Republica
Dominicana, Banco de Servicios Multiples' ratings as:

  -- Foreign currency Issuer Default rating at 'B';
  -- Local currency Issuer Default rating at 'B';
  -- Short-term foreign currency Issuer Default rating at 'B';
  -- Short-term local currency Issuer Default rating at 'B';
  -- Individual rating at 'D';
  -- Support rating of at '4';
  -- Support floor at 'B';
  -- National long-term rating at 'A+(dom)';
  -- National short-term rating at 'F1(dom)'.

Fitch also revised the Rating Outlook to Stable from Positive,
after a similar change made on the Outlook of the Dominican
Republic sovereign rating.  Banco de Reservas issuer default
ratings reflect the support provided by its shareholder, the
Dominican government.  In addition, the bank's individual rating
is supported by its ample market share, the stability of its
deposit base and moderate profitability ratios.  However, a tight
capital base, the significant exposure to the Dominican government
on BANRESERVAS' balance sheet and below-average asset quality
metrics limit the bank's individual rating.

As of year-end December 2007, Banco de Reservas ranked first out
of 13 commercial and multiple service banks, with 25% of total
system assets.  The bank is the main government paying agent and
also has adequate participation in the consumer and corporate
markets.

Banco de Reservas de la Republica Dominicana --
http://www.banreservas.com.do/-- is an International
government-owned commercial bank located in Santo Domingo,
Dominican Republic.



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

ASARCO LLC: USW Commends DOJ for Objecting to Parent's Plan
-----------------------------------------------------------
The United Steelworkers praised the United States Department of
Justice and the Attorneys General of nine states for their
Sept. 12, 2008 filing with the U.S. Bankruptcy Court for the
Southern District of Texas in which they opposed the effort of
Grupo Mexico and its affiliates to regain control of ASARCO.  In
the filing, the DOJ and nine co-signing states urged that the
Bankruptcy Court give no further consideration to Grupo Mexico's
proposed Plan of Reorganization for ASARCO and instead go forward
solely with the ASARCO plan at the confirmation hearings in
November.

The co-signing states included Arizona, California, Colorado,
Idaho, Missouri, Montana, Nebraska, New Jersey and Washington.

"We are pleased to see the Department of Justice and the
nine states' stance and their efforts to hold Grupo Mexico
accountable for its outrageous conduct," Terry Bonds, Director
of USW District 12, said.  "Along with the recent court decision
against Grupo Mexico concerning the fraudulent conveyance of
ASARCO's Southern Peru Copper shares, which concluded that
Grupo had mislead the public and the DOJ and taken action to
delay and hinder creditors from receiving payment on their
claims, this filing by the DOJ represents a very positive turn
of events in the ASARCO Bankruptcy Case."

According to the DOJ and the nine states, Grupo Mexico has
squandered its opportunity to propose a plan which would provide
for meaningful settlement of ASARCO's outstanding liabilities.
Grupo's proposal is especially disturbing in light of the fact
that it has already been found by a United States District Court
to have defrauded creditors and mislead the public and the DOJ.
Worse, as the filing emphasizes, many of ASARCO's liabilities
represent real dangers to the health and welfare of many
communities throughout the United States.
   
The DOJ's filing relates that Grupo Mexico has ignored the
Bankruptcy Court's admonitions that it try to seek settlements
with key constituents.  Over the last few months Grupo has made no
settlement proposals to the DOJ to resolve ASARCO's environmental
liabilities.  In fact, Grupo has suggested that the environmental
claimants should not even have the right to vote on its proposed
Plan of Reorganization.

The filing goes on to warn that the Grupo Plan does not take
into account the danger of a strike by union members working at
ASARCO if Grupo regains control and how such a labor dispute
could further affect creditor recoveries.

                         About ASARCO LLC

Based in Tucson, Arizona, ASARCO LLC -- http://www.asarco.com/--   
is an integrated copper mining, smelting and refining company.
Grupo Mexico S.A. de C.V. is ASARCO's ultimate parent.

The Company filed for Chapter 11 protection on Aug. 9, 2005
(Bankr. S.D. Tex. Case No. 05-21207).  James R. Prince, Esq., Jack
L. Kinzie, Esq., and Eric A. Soderlund, Esq., at Baker Botts
L.L.P., and Nathaniel Peter Holzer, Esq., Shelby A. Jordan, Esq.,
and Harlin C. Womble, Esq., at Jordan, Hyden, Womble & Culbreth,
P.C., represent the Debtor in its restructuring efforts.  Lehman
Brothers Inc. provides the ASARCO with financial advisory services
and investment banking services.  Paul M. Singer, Esq., James C.
McCarroll, Esq., and Derek J. Baker, Esq., at Reed Smith LLP give
legal advice to the Official Committee of Unsecured Creditors and
David J. Beckman at FTI Consulting, Inc., gives financial advisory
services to the Committee.

When the Debtor filed for protection from its creditors, it listed
US$600 million in total assets and US$1 billion in total debts.

The Debtor has five affiliates that filed for chapter 11
protection on April 11, 2005 (Bankr. S.D. Tex. Case Nos.
05-20521 through 05-20525).  They are Lac d'Amiante Du Quebec
Ltee, CAPCO Pipe Company, Inc., Cement Asbestos Products Company,
Lake Asbestos of Quebec, Ltd., and LAQ Canada, Ltd.  Sander L.
Esserman, Esq., at Stutzman, Bromberg, Esserman & Plifka, APC, in
Dallas, Texas, represents the Official Committee of Unsecured
Creditors for the Asbestos Debtors.  Former judge Robert C. Pate
has been appointed as the future claims representative.  Details
about their asbestos-driven Chapter 11 filings have appeared in
the Troubled Company Reporter since April 18, 2005.

Encycle/Texas, Inc. (Bankr. S.D. Tex. Case No. 05-21304), Encycle,
Inc., and ASARCO Consulting, Inc. (Bankr. S.D. Tex. Case No. 05-
21346) also filed for chapter 11 protection, and ASARCO has asked
that the three subsidiary cases be jointly administered with its
chapter 11 case.  On Oct. 24, 2005, Encycle/Texas' case was
converted to a Chapter 7 liquidation proceeding.  The Court
appointed Michael Boudloche as Encycle/Texas, Inc.'s Chapter 7
Trustee.  Michael B. Schmidt, Esq., and John Vardeman, Esq., at
Law Offices of Michael B. Schmidt represent the Chapter 7 Trustee.

ASARCO's affiliates, AR Sacaton LLC, Southern Peru Holdings LLC,
and ASARCO Exploration Company Inc., filed for Chapter 11
protection on Dec. 12, 2006.  (Bankr. S.D. Tex. Case No. 06-20774
to 06-20776).

Six of ASARCO's affiliates, Wyoming Mining & Milling Co., Alta
Mining & Development Co., Tulipan Co., Inc., Blackhawk Mining &
Development Co., Ltd., Peru Mining Exploration & Development Co.,
and Green Hill Cleveland Mining Co. filed for Chapter 11
protection on April 21, 2008.  (Bank. S.D. Tex. Case No. 08-20197
to 08-20202).

The Debtors submitted to the Court a joint plan of reorganization
and disclosure statement on July 31, 2008.  The plan incorporates
the sale of substantially all of the Debtors' assets to Sterlite
Industries, Ltd., for US$2,600,000,000.

Americas Mining Corporation, an affiliate of Grupo Mexico SAB de
CV, submitted a reorganization plan to retain its equity interest
in ASARCO LLC, by offering full payment to ASARCO's creditors in
connection with ASARCO's Chapter 11 case.  AMC would provide up to
US$2.7 billion in cash as well as a US$440 million guarantee to
assure
payment of all allowed creditor claims, including payment of
liabilities relating to asbestos and environmental claims.  AMC's
plan is premised on the estimation of the approximate allowed
amount of the claims against ASARCO.

Asarco Inc. and AMC are represented by Luc A. Despins, Esq., at
Milbank, Tweed, Hadley & McCloy LLP, in New York.

(ASARCO Bankruptcy News Issue No. 85; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)


BLUE WATER: Court Confirms Amended Joint Plan of Liquidation
------------------------------------------------------------
Judge Marci McIvor of the U.S. Bankruptcy Court for the Eastern
District of Michigan, according to Bloomberg News, confirmed on
Sept. 23, 2008, the Amended Joint Plan of Liquidation filed by
Blue Water Automotive Systems Inc., and its debtor affiliates.

The Amended Plan provides for the sale of Blue Water's assets, in
bulk or piecemeal with proceeds to be applied to its secured debts
to CIT Capital USA, Inc., and CIT Group/Equipment Financing, Inc.  
CIT Equipment has already credit bid Blue Water's real property
located in a Haas, Michigan plant for US$3,000,000.  Sales of Blue
Water's assets including real estate and equipment are on-going.

Blue Water previously failed on its efforts to sell substantially
all of its assets, first to NYX, Inc., for US$28,000,000, and
second to Flex-N-Gate, LLC, for US$39,500,000, after determining
that proceeds from either sale will not be enough to satisfy Blue
Water's more than US$40,000,000 collateralized loans from the CIT
Entities.

Blue Water started ceasing operations of its plants in the
United States immediately after announcing the failure of the sale
negotiations.  Bloomberg said Blue Water's last plant ceased
production on September 26.

"There's been a lot of devastation in the market," Blue Water's
chief executive officer, James Sampson, told Bloomberg in a phone
interview.  "Hopefully the remaining players will find a way to
survive, and employees in the area can find other opportunities."  

Mr. Sampson also disclosed the sale of Blue Water's non-Debtor
Mexican affiliate, Blue Water Systems Mexico, S. de R.L. de C.V.,
in the coming weeks, keeping about 250 jobs.

                Plan Confirmation Objections

The confirmation of Blue Water's Liquidating Plan has been
impeded by overwhelming creditor objections led by the CIT
Entities, General Motors Corporation and the Official Committee
of Unsecured Creditors.  Both GM and the Creditors' Committee
have sought conversion of Blue Water's case to Chapter 7.

Just before the September 23 Confirmation Hearing, Chrysler LLC
reiterated its stand that the Debtors' Amended Joint Plan of
Liquidation should not be confirmed because the Plan:

  -- fails to provide adequate assurance evidence that
     administrative claims allowed under Section 503(b) of the
     Bankruptcy Code will be paid on the Effective Date;

  -- the Plan impermissibly subordinates Chrysler's Cash
     Collateral Lien to interests held by Ford Motor Co.;

  -- discharges claims constituting Chrysler's collateral
     without providing immediate full payment and discharge of
     the Cash Collateral Lien;

  -- impermissibly provides more favorable treatment to certain
     creditors in the same class of claims as Chrysler; and

  -- improperly attempts to discharge Chrysler's setoff and
     recoupment rights as a secured party.

Chrysler complained that the Amended Plan is inconsistent in its
treatment of claims as it seeks to pay the claims of other
secured creditors, yet it proposes to completely disallow
Chrysler's secured claim.  The Debtors, Chrysler told Judge
McIvor, have exempted Ford and General Motors Corporation from
the provisions that extinguish claims thereby favoring certain
creditors over others.

Chrysler related that the Debtors have not explained to parties-
in-interest why their full release of claims aggregating
US$7,500,000 against Ford will be of benefit to the estates; not
to mention that the Debtors provided no evidence on the benefit
the full release of the claims may confer.  Chrysler, which holds
a security interest in the Debtors' Claims against Ford, objected
to the release without any evidence of the benefit received by
the Debtors, other than the Amended Plan support payments and
bonuses to the Debtors' insiders.

       Blue Water Resolves Issues with Tooling Vendors

Before the Confirmation Hearing, the Debtors sought and obtained
Court approval of separate stipulations they entered into with
six tooling vendors resolving, among others, (i) applicable
tooling issues and (ii) objections to the Debtors' Amended Joint
Plan of Liquidation:

  * Kimastle Corporation
  * Radiance Mold & Engineering, Inc.
  * Standex International Corporation
  * Tri-way Mold & Engineering, Inc.
  * PME Companies, Inc.
  * Innovative Mold, Inc.,

The parties agreed that the Amended Plan and its Confirmation
Order do not determine which contracts of the Tooling Vendors are
executory.  Moreover, any contract, to which the Tooling Vendors
received payment on, will be deemed as assumed.  Any assumed
contract will neither be affected by the Amended Plan and its
Confirmation Order, nor be rejected in the future.

The Tooling Vendors agreed to waive any unpaid administrative
claim they would have against the Debtors, but not any unsecured
claim.  

With respect to Kimastle, it will not waive its Section 503(b)(9)
Claim, as Kimastle is deemed to have accepted the terms of the
Section 503(b)(9) Settlement.  In the event that the Section
503(b)(9) Settlement is not approved, Kimastle will be deemed to
accept 25% of its Section 503(b)(9) Claim in full satisfaction of
its Claim.

Tri-way, PME, Innovative and Kimastle's applicable purchase
orders entered into with the Debtors are deemed rejected and the  
liens on their tooling are recognized.  Accordingly, the parties
agree to the modification of the automatic stay to allow the
applicable tooling vendors to enforce the liens on their tooling.

In the same way that the Debtors are deemed to have abandoned
their interest on the tooling, the Debtors will not object to the
applicable tooling vendors' assertion of any other liens on the
basis that these tooling vendors have waived their lien rights by
accepting and performing the Debtors' purchase orders.  

The Debtors agree to advise PME no later than October 13, 2008,
the location of its tooling.  Any provision of the Amended Plan
when it comes to treatment of claims will not affect PME's liens
in its tooling

Innovative and PME have agreed to explicitly withdraw their
objections to the Amended Plan.  In another filing, Tri-way has
withdrawn its objection to the Amended Plan.

                       *     *     *

The Court has not yet issued a written order confirming Blue
Water's Liquidation Plan as of Sept. 25, 2008.

                About Blue Water Automotive

Blue Water Automotive Systems, Inc. designs and manufactures
engineered thermoplastic components and assemblies for the
automotive industry. The company's product categories include
airflow management, full interior trim/sub-systems, functional
plastic components, and value-added assemblies. They are supported
by full-service design, program management, manufacturing and
tooling capabilities. With more than 1,400 employees, Blue Water
operates eight manufacturing and product development facilities
and has annual revenues of approximately US$200 million. The
company's headquarters and technology center is located in
Marysville, Mich. The company has operations in Mexico.

In 2005, KPS Special Situations Fund II, L.P., and KPS Special
Situations Fund II(A), L.P., acquired Blue Water Automotive
through a stock purchase transaction. In 2006, the company
acquired the automotive assets and operations of Injectronics,
Inc., a manufacturer of thermoplastic injection molded components
and assemblies. KPS then set about reorganizing the company. The
company implemented a program to improve operating performance and
address its liquidity issues. During 2007, the company replaced
senior management, closed two facilities, and reduced overhead
spending by one third.

Blue Water Automotive and four affiliates filed for chapter 11
bankruptcy protection Feb. 12, 2008, before the United States
Bankruptcy Court Eastern District of Michigan (Detroit) (Case No.
08-43196). Judy O'Neill, Esq., and Frank DiCastri, Esq., at Foley
& Lardner, LLP, serve as the Debtors' bankruptcy counsel.
Administar Services Group LLC acts as the Debtors' claims,
noticing, and balloting agent.  As of June 30, 2008, the Debtors'
unaudited balance sheet showed US$93,264,863 in total assets and
US$108,300,898 in total liabilities.

The Debtors filed their Liquidation Plan on May 9, 2008.  The Plan
contemplates a sale of substantially all of the Debtors' assets
and equity interests, except for a piece of real property located
at Yankee Road, in St. Clair, Michigan.

(Blue Water Automotive Bankruptcy News, Issue No. 30, Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or     
215/945-7000)


BLUE WATER: Court Approves Plan Settlement, Objections Overruled
----------------------------------------------------------------
Judge Marci McIvor of the the U.S. Bankruptcy Court for the
Eastern District of Michigan approved a Plan Settlement, according
to Bloomberg News, over the objections filed by General Motors
Corporation, Chrysler LLC, The Dow Chemical Company, and
Packaging Corporation of America.

The Plan Settlement entered into among Blue Water Automotive
Systems Inc., and its debtor affiliates, Ford Motor Co., the
Official Committee of Unsecured Creditors, and CIT Capital USA,
Inc., CIT Group/Equipment Financing, Inc., calls for Ford to
place US$1,700,000 into an escrow account to pay (i) allowed
claims
asserted under Section 503(b)(9) of the Bankruptcy Code, and
(ii) US$900,000 of initial funding for the Creditors' Trust.

GM argued that the Plan Settlement, at best, is "a clever scheme
to accomplish indirectly what cannot be done directly," thus
skirting significant creditor protections provided by the
Bankruptcy Code.  The Plan Settlement not only improperly
provides for distributions to the Creditors' Trust and to non-
priority claims, GM complained that the funding for
administrative creditors under the Settlement Agreement is
woefully inadequate to pay GM's US$1,110,000 allowed claim, let
alone any additional senior claims.

GM disclosed that the Debtors even admitted that their desired
affect of pursuing separate approval of the Settlement Agreement
is to bypass the need for obtaining administrative creditor
approval of the Amended Plan.  

These deliberate efforts to lock the estates into a plan amounts
to an impermissible de facto plan for which the Court can not
give its stamp of approval, Aaron M. Silver, Esq., at Honigman
Miller Schwartz and Cohn LLP, in Detroit, Michigan, argued for
GM.

Chrysler also complained that the Plan Settlement impermissibly
subordinates its Cash Collateral Lien to Ford's Cash Collateral
Lien rights, which contradicts the priorities set forth in the
DIP Final Order.  Chrysler contested the Debtors' full release of
their claims against Ford totaling US$7,500,000 as the Debtors
have
not provided any reason how the full release can be beneficial to
the Debtors' estates.  

Chrysler asserted a US$713,000 secured claim from the Cash
Collateral Loan and a US$1,500,000 administrative claim arising
from the Chrysler Accommodation Agreement and the Credit
Enhancement Agreement.  Not only did the Debtors fall short in
giving notice to the Plan Settlement, the Court should deny the
Settlement Agreement, Chrysler asserted.

Dow Chemical wanted to clarify the status of its allowed Claim
No. 1130 for US$91,490.  Dow Chemical also imparted that the
Settlement Agreement failed to resolve any deficiency of the
Amended Plan.  Packaging Corporation concurred to Dow Chemical's
arguments.

Judge McIvor has not yet issued a written order approving the
settlement as of Sept. 25, 2008.

                About Blue Water Automotive

Blue Water Automotive Systems, Inc. designs and manufactures
engineered thermoplastic components and assemblies for the
automotive industry. The company's product categories include
airflow management, full interior trim/sub-systems, functional
plastic components, and value-added assemblies. They are supported
by full-service design, program management, manufacturing and
tooling capabilities. With more than 1,400 employees, Blue Water
operates eight manufacturing and product development facilities
and has annual revenues of approximately US$200 million. The
company's headquarters and technology center is located in
Marysville, Mich. The company has operations in Mexico.

In 2005, KPS Special Situations Fund II, L.P., and KPS Special
Situations Fund II(A), L.P., acquired Blue Water Automotive
through a stock purchase transaction. In 2006, the company
acquired the automotive assets and operations of Injectronics,
Inc., a manufacturer of thermoplastic injection molded components
and assemblies. KPS then set about reorganizing the company. The
company implemented a program to improve operating performance and
address its liquidity issues. During 2007, the company replaced
senior management, closed two facilities, and reduced overhead
spending by one third.

Blue Water Automotive and four affiliates filed for chapter 11
bankruptcy protection Feb. 12, 2008, before the United States
Bankruptcy Court Eastern District of Michigan (Detroit) (Case No.
08-43196). Judy O'Neill, Esq., and Frank DiCastri, Esq., at Foley
& Lardner, LLP, serve as the Debtors' bankruptcy counsel.
Administar Services Group LLC acts as the Debtors' claims,
noticing, and balloting agent.  As of June 30, 2008, the Debtors'
unaudited balance sheet showed US$93,264,863 in total assets and
US$108,300,898 in total liabilities.

The Debtors filed their Liquidation Plan on May 9, 2008.  The Plan
contemplates a sale of substantially all of the Debtors' assets
and equity interests, except for a piece of real property located
at Yankee Road, in St. Clair, Michigan.

(Blue Water Automotive Bankruptcy News, Issue No. 30, Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or     
215/945-7000)


FEDERAL-MOGUL: Court Bars Creditors from Filing Complaints
----------------------------------------------------------
Federal-Mogul Corp. and its debtor-affiliates notify parties-in-
interest that all proceedings in an adversary complaint with
respect to Compagnie Europeenne d' Assurances Industrielles, S.A.,
are stayed pursuant to CEAI's Chapter 15 filing.

Donald M. Ransom, Esq., at Casarino Christman Shalk Ransom &
Doss, P.A., in Wilmington, Delaware, relates that the U.S.
Bankruptcy Court for the Southern District of New York has
recognized CEAI's foreign proceeding and granted permanent
injunction on all claims against CEAI on September 26, 2007.

CEAI has reorganization proceedings before the High Court of
Justice of England and Wales with respect to CEAI's proposed
Scheme of Arrangement, pursuant to Section 425 of the Companies
Act 1985 of England and Wales.  The U.K. Court has prohibited all
creditors from seizing, repossessing, transferring, relinquishing
or disposing of any property of CEAI in contravention of, or
inconsistent with, the Arrangement.

The New York Court, specifically, has permanently prohibited all
creditors from:

  1. commencing or continuing any action or legal proceeding in
     connection with Arrangement Liabilities or any claims
     against CEAI;

  2. enforcing any judicial, quasi-judicial, administrative
     judgment, assessment or order, or arbitration award ]
     obtained in connection with any Arrangement liabilities or
     claims against CEAI arising out of the Arrangement
     liabilities or any claims or any proceeds from them against
     CEAI, CEAI's business or any of CEAI's property in the
     United States.

  3. invoking, enforcing or relying on the benefits of any
     statue, rule or requirements of federal, state, or local
     law or regulation required that CEAI establish or post
     security in the form of a bond, letter of credit or
     otherwise as a condition of prosecuting or defending any
     proceedings, except as explicitly provided for by the
     Court; and

  4. taking any action in contravention of, or in inconsistent
     with, the Arrangement.

Federal-Mogul Corporation -- http://www.federal-mogul.com/--
(OTCBB: FDMLQ) is a global 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.

(Federal-Mogul Bankruptcy News, Issue No. 172; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000)


LEAR CORP: S&P Lifts US$1 Bil. Facility Issue Level Rating to 'BB'
-----------------------------------------------------------------
Standard & Poor's Ratings Services has raised its issue-level
rating on Lear Corp.'s US$1 billion senior secured term loan
facility (US$988 million outstanding) to 'BB' from 'BB-' and
revised the recovery rating to '1' from '2'.  The recovery rating
indicates the expectation of very high recovery in the event of a
payment default.  The action follows the company's reduction of
its US$1.7 billion senior secured revolving credit facility to
US$1.3 billion until March 2010 and then US$822 million thereafter
until the final maturity of January 2012.  S&P does not rate the
senior secured revolving credit facility.  
   
In addition, S&P lowered its issue-level ratings on Lear's senior
unsecured notes to 'B' from 'B+' and revised the recovery rating
to '5' from '4', indicating the expectation of modest recovery in
the event of a payment default.

Ratings List

Lear Corp.
Corporate credit rating                   B+/Stable/--

Ratings Raised
                                           To         From
                                           --         ----

US$1 bil. sr. secured term loan             BB         BB-
   Recovery rating                         1          2

Ratings Lowered

Sr. unsecured notes                       B          B+
   Recovery rating                         5          4

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


URBI DESARROLLOS: Fitch Holds BB Currency Issuer Default Ratings
----------------------------------------------------------------
Fitch Ratings has affirmed the foreign and local currency Issuer
Default Ratings and outstanding debt ratings of Urbi Desarrollos
Urbanos, S.A.B. de C.V. as:

  -- Local Currency Issuer Default Rating at 'BB';
  -- Foreign Currency Issuer Default Rating at 'BB';
  -- US$150 million senior notes due 2016 at 'BB';
  -- Long-term national scale at 'A(mex)';
  -- Short-term national scale at 'F2(mex)'.

The Rating Outlook is Stable.

The rating action reflects Urbi's strong market position in the
highly fragmented Mexican homebuilding industry, being the third
largest homebuilder in Mexico in terms of homes sold; its
geographic and product diversification; significant land reserve;
and its good financial profile.  Urbi's ratings are constrained by
dependency of financing of government-related mortgage funding of
low-income homes, and the high working capital requirements
related with the operation of the company, which has increased as
a result of the scheme 'Alternativa Urbi'.

Urbi has an important geographic diversification operating in
eight states of Mexico; and manages a variety of products to
attend different income segments of the market.  Diversity in
several places has diminished the risks related to the operating
concentration but has meant more supervision and control in the
existing cities and the integration of the new regions.  In
addition, the company's sales mix provides flexibility to adapt
its commercial strategies according to market needs.

Urbi is well-positioned to benefit from growth in the homebuilding
market in Mexico.  Urbi owns a significant amount of land,
predominantly in Baja California, Mexico City metropolitan area,
Guadalajara and Chihuahua, providing the company with flexibility
to meet growing demand for new homes.  At June 30, 2008, Urbi had
around five years of land reserves in the different places where
Urbi operates.

Urbi's operating profile is solid.  Over the last five years
revenues have grown at a rapid 20.1% compound annual growth rate
while units sold increased from 20,071 to 37,231.  Over the same
period, Urbi has been able to maintain stable EBITDA margins of
approximately 24.8% by adhering to strict cost and expense
controls, ability to diversify its product mix, implementation of
new sale schemes, managing production with commercial cycles and
construction optimization.

During 2002 to 2005, total debt-to-EBITDA averaged approximately
1.3 times.  In 2006, Urbi began sales through a 'Rent to Own'
program called 'Alternativa Urbi' that substantially increased the
company's working capital requirements.  To fund the growth in
accounts receivables, Urbi sells the receivables through a
factoring scheme in a debt agreement with recourse.  This
additional debt increased Urbi's total debt-to-EBITDA ratio to 1.9
and 1.7 in 2006 and 2007.

During first and second-quarter 2008, last twelve months, this
ratio has improved to 1.6 and 1.5 respectively, as a result of
higher EBITDA, slight decrease in the indebtedness related to the
normal operation of Urbi, and the company's decision to limit up
to MXN2 billion the amount to finance the 'Alternativa Urbi'
program.  Fitch estimates the limited financial resources invested
in the development of this scheme will allow the ratio of debt to
EBITDA to strengthen over the next few quarters.  Also, the
ratings consider that the actual operating metrics and debt-to-
EBITDA ratio will remain over the current levels.

As of June 30, 2008, Urbi had an adequate debt maturity profile,
being 49% short term, and cash and marketable securities of
MXN2.6 billion, which grants the company flexibility in the event
of adverse economic conditions.  At this time, cash and marketable
securities were 48% higher compared to the same period of 2007
mainly as a result of the additional resources obtained from
Urbi's equity placement in November 2007, which have been used to
continue with Urbi's growth plan.  

At the same date, the company had a total adjusted debt of MXN5.4
billion, an increase of 28% with respect to the same date of 2007
as a result of higher use of resources to finance the 'Alternativa
Urbi' program.

The homebuilding industry still faces challenges such as the
availability of additional funding sources aside from the
company's cash flow generation, delays in the process of obtaining
licenses and permits, lack of land with infrastructure at
affordable prices, among others, which could limit the sector's
growth.  In addition, the Mexican housing industry performance is
indeed highly dependent on the sector's lenders such as Infonavit,
Sociedad Hipotecaria Federal, Fovissste, among others.  

However, it is estimated that the support given by the Government,
participation of other financial intermediaries and the
implementation of new financing schemes will help compensate the
inherent risks and contribute to the performance of the industry
in the medium term, in a weak economic environment.

At June 30, 2008 Urbi sold 18,650 houses and earned MXN6.4 billion
in revenues.

Founded in 1981 in Mexicali, Baja California, Urbi Desarrollos
Urbanos, S.A.B. de C.V -- http://www.urbi.com/-- is the third-
largest homebuilder in Mexico.  The company builds and sells
houses mainly in the states of Baja California, Sonora, Sinaloa,
Chihuahua, Nuevo Leon, Aguascalientes, Jalisco, and Mexico
City's metropolitan area.  The company specializes in affordable
entry-level and low middle-income housing, although it also
participates in high middle-income and upper-income housing
segments.



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

ZAP IMPORT: Wants to Hire Monge Robertin as Restructuring Advisor
-----------------------------------------------------------------
Zap Import & Export Inc. asks permission from the U.S. Bankruptcy
Court for the District of Puerto Rico to employ Jose M. Monge
Robertin, CPA, CIRA and Monge Robertin & Co. CPA, C.S.P. as its
insolvency and restructuring advisors on all financial matters
pertaining to the reorganization in its Chapter 11 proceedings.

The engagement does not provide for a payment of a deposit, but
rather advances equal to 70% of the fees billed on a monthly
basis.

To the best of the Debtor's knowledge, the Firm does not hold any
interst adverse to the Debtor's estate and is a "disinterested
person" under the U.S. Bankruptcy Code.

Based in San Juan, Puerto Rico, Zap Import & Export Corp. imports
and exports motor vehicle supplies and new parts.  The company
filed for Chapter 11 protection on Sept. 3, 2008 (Bankr. D. P.R.
Case No. 08-05799).  Winston Vidal Gambaro, Esq., represents the
Debtor.  The Debtor's Schedules showed assets of US$11,056,928 and
liabilities of US$11,161,127.



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

* VENEZUELA: Oil Revenues Cue S&P to Hold BB-/B Sovereign Ratings
-----------------------------------------------------------------
Standard & Poor's Ratings Services has affirmed its 'BB-/B'
sovereign credit rating on the Bolivarian Republic of Venezuela.
S&P also said that the outlook on Venezuela remains stable.
      
"The ratings on Venezuela are supported by its robust external and
fiscal balance sheets, which continue to improve as a result of
high and increasing oil revenues," noted S&P's credit analyst
Roberto Sifon Arevalo.  "We expect that Venezuela's public sector
will be in a net external creditor position of 25% of current
account receipts in 2008, which is one of the strongest of any
issuer in the 'BB' category and significantly higher than the 1.5%
net creditor position for the 'BB' median."  Venezuela's financial
and nonfinancial private sectors also are net external creditors.

The ratings are supported by:

   * Robust current account surplus that supports a strong
     external liquidity position.

   * A relatively low and declining debt and interest burden.
     
On the fiscal side, S&P expects that net general government debt
(including open market operations of the central bank) will fall
to 5% of GDP in 2008 versus the 'BB' median's 30%.  In addition,
the interest burden -- as measured by government expenditure on
interest to general government revenue -- will likely fall to 4.2%
in 2008 from 15% in 2004, which is well below the 'BB' median's
10%.
     
"Political factors continue to be the main constraint on the
ratings," Mr. Sifon Arevalo added.  "Changing and arbitrary laws,
price and exchange controls, and other distorting economic
measures that have hurt Venezuela's domestic economy have deterred
foreign direct investment and will continue to limit the ratings
for the foreseeable future."

The ratings are constrained by:

   * Weak institutions and a continued deterioration of the system
     of checks and balances.

   * Erratic economic policy and poor economic management.

   * A rapid increase in government expenditure.

   * Increasing concerns over the financial sector.
     
Political factors have become even more relevant in the run-up to
the Nov. 23 regional elections, in which 23 out of 24 states and
335 municipalities are set to elect their governors and mayors.
After the government defeat in the December 2007 referendum, it
has been hard pressed to increase its popularity among its
traditional electorate and is increasingly worried that it could
lose in many key states, especially those where the majority of
the population resides.  However, supporters of President Hugo
Chavez control most of the major institutions in the country,
including the National Assembly, judiciary, armed forces, and
electoral council.  The government has further increased its hold
over the overall economic base through a series of
nationalizations beginning in January 2007.
     
Finally, increasing risks are emanating from the rapid growth and
deterioration of credit quality in the financial sector.  Domestic
credit has expanded by 70% in 2007, and S&P expects that it will
expand another 50% in 2008.  At the same time, nonperforming loans
-- albeit still at low levels -- grew to 2% in 2008 from 1% in
2007.     

The stable outlook balances the risks of continued strength in
Venezuela's external and debt indicators with economic policy
uncertainties as well as the lack of transparency in governance
and accountability.  However, S&P expects that the non-energy
deficit (general government deficit minus revenues from oil) will
be a high 23% of GDP in 2008, up from 14% in 2004.  Mr. Sifon
Arevalo added, "This highlights both Venezuela's high dependence
on oil exports and the rapid increase in government expenditures.
If oil prices were to fall sharply, the country's external and
fiscal indicators could deteriorate quickly, putting downward
pressures on the ratings."

Ratings Affirmed:

Venezuela (Bolivarian Republic of)

   -- Sovereign Credit Rating BB-/Stable/B
   -- Transfer & Convertibility Assessment Local Currency BB-
   -- Senior Unsecured (36 issues) BB-
   -- Recovery Rating 4


* LatAm Stocks React to Bush's Failed US$700 Billion Bailout Plan
-----------------------------------------------------------------
Latin American stocks plunged in intraday trading on Sept. 29, as
the U.S. House of Representatives rejected a US$700 billion
bailout package meant to reboot the global economy, the Associated
Press reports.

According to AP, Sao Paulo’s Ibovespa stock index led losses,
tanking 10.2 percent to 45,623 in afternoon trading despite
insistence by Brazil’s president that contagion from the world
financial crisis would be small.

AP says Brazil’s currency, the real, fell 5.9 percent against the
U.S. dollar in intraday trading, Mexico’s Bolsa stock index fell
5.5 percent to 24,197 in midday trading, while Buenos Aires’
Merval index slipped 7.5 percent to 1,565 and Chile’s Ipsa index
fell 4.9 percent to 2,648.

Risk-averse investors, the report relates, have pulled cash from
emerging markets in recent weeks, dumping company shares amid
fears that the current financial crisis will tighten access to
credit across the world and further slow growth.  Investors also
responded to the defeat of the United States’ proposed US$700
billion emergency rescue package, AP notes.  According to AP, the
lower house of congress rejected the plan by a vote of 228-205,
ignoring urgent pleas from President Bush and bipartisan
congressional leaders to quickly bail out the staggering financial
industry.



                            ***********

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, Sheryl Joy P. Olano,
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.


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