TCRLA_Public/081008.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 8, 2008, Vol. 9, No. 200

                            Headlines

A R G E N T I N A

ASOCIACION FRANCESCA: Files for Bankruptcy Petition in Court
ELECTROMAC SA: Files for Reorganization in Buenos Aires Court
HSBC ARGENTINA: Secures VASCO's Online Retail and Customers Biz
PAN AMERICAN: Fitch Affirms BB/BB+ Currency Issuer Default Ratings

* ARGENTINA: Citigroup Gives “Sell” Ratings to Argentine Banks


B E R M U D A

AMERICAN INTERNATIONAL: Sale Can Help Repay Loan, Says UBS Analyst
AMERICAN INTERNATIONAL: Discloses 8.4% Equity Stake in eTelecare
AMERICAN INTERNATIONAL: Robert Sandler Retires From Firm


B R A Z I L

BANCO DO BRASIL: To Merge Besc and Bescri for BRL685 Million
BANCO DAYCOVAL: S&P Shifts Outlook to Stable; Holds BB-/B Ratings
BANCO INDUSVAL: S&P Shifts Outlook to Stable; Affirms B+/B Ratings
FORD MOTOR: Conditions Satisfied for UAW Settlement Deal
GENERAL MOTORS: Joins Fiat in Slashing Output at Brazil Plants

GENERAL MOTORS: Unable to Meet Demand, Factory to Run Overtime
GENERAL MOTORS: Amended GSA and MRA Take Effect
GENERAL MOTORS: Exchanges 16MM Shares for Series D Debentures
SADIA SA: Weak Credits Prompt S&P's Credit Rating Cut to BB-/Neg.

SADIA OVERSEAS: S&P Cuts US$250 Million Senior Notes Rating to BB-

* BRAZIL: S&P Revises Outlook on 6 Infrastructure Firms to Stable


C A Y M A N  I S L A N D S

ALTA PARTNERS: Proof of Claim Filing Deadline Is Oct. 15
CANTRADE TRUST: Holding Final Shareholders Meeting on Oct. 15
EFFICIENT GLOBAL: Proof of Claim Filing Is Until Oct. 15
EMERALD INVESTMENT: Deadline for Claims Filing Is Oct. 15
GAINSBOROUGH GLOBAL: Claims Filing Deadline Is on Oct. 15

GEMS-J1 CAYMAN: Proof of Claim Filing Deadline Is Oct. 15
HACHI HOLDINGS: Holds Final Shareholders Meeting on Oct. 15
HAMPTON CDO: Deadline for Proof of Claim Filing Is Oct. 15
JLOC 2001-1: Filing for Proof of Claim Is Until Oct. 15
PYLOS LIMITED: To Hold Final Shareholders Meeting on Oct. 15

ROMARIO FINANCE: Deadline for Filing of Claims Is Oct. 15
SAFE FUNDING: Deadline for Proof of Claim Filing Is Oct. 15
SK CORPORATION: Proof of Claim Filing Deadline Is Oct. 15
SUNDIAL FUND: Deadline for Filing Of Claims Is Oct. 15
SUNDIAL MASTER: Filing for Proof of Claim Is Until Oct. 15

TAMACHI TTP: Holding Final Shareholders Meeting on Oct. 15
TSF NO. 7: Will Hold Final Shareholders Meeting on Oct. 15


C H I L E

EXIDE TECHNOLOGIES: Wants Oct. 31 Extension to Review Claims


C O L O M B I A

BANCOLOMBIA SA: Reaches Bargaining Deal With Uneb and Sintrabancol
GLOBAL CROSSING: Expands Collaboration Solutions in Colombia


E C U A D O R

AMERICAN INTERNATIONAL: Has 33.2% Stake in Transatlantic Holdings
AMERICAN INTERNATIONAL: Moody's Cuts Unsecured Debt Rating to 'A3'


G U A T E M A L A

EXIDE TECH: Posts Estimated Net Sales of US$910MM in Second Qtr.


J A M A I C A

DIGICEL LTD: Commercial Director Abandons Post After Three Months
NATIONAL COMMERCIAL: U.S. Turmoil Won't Mar Local Operations


M E X I C O

ATRIUM CORP: Extends Exchange Offering of 11-1/2% Senior Notes
COOPER TIRE: Eyes Production Adjustment on Raw Materials Shortage
CORPORACION DURANGO: Files for Ch. 15; Affiliates File Ch. 11
CORPORACION DURANGO: Chapter 15 Case Summary
CORPORACION DURANGO: S&P Lowers Corp. Credit Rating Further to D

DIOMED HODLINGS: Pays in Full Debt to Hercules Technology
INNOPHOS HOLDINGS: CNA Files Appeal over Water Rate Decision

* MEXICO: S&P Shifts 5 Banks' Counterparty Credit Rating Outlooks


P E R U

* PERU: Suspends Discovery Petroleum Deals Over Kickback Scandal


P U E R T O  R I C O

ROYAL CARIBBEAN: To Sell Stake in Island Cruises to First Choice


V E N E Z U E L A

PETROLEOS DE VENEZUELA: Okays Agreement for Pernambuco Refinery

* Latin American Poverty Springs from Childhood, World Bank Says


                         - - - - -


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

ASOCIACION FRANCESCA: Files for Bankruptcy Petition in Court
------------------------------------------------------------
The National Commercial Court of First Instance No. 20 in Buenos
Aires is studying the merits of Asociacion Francesa Filantropica y
de Beneficencia's request to enter bankruptcy protection.

Asociacion Francesa filed a "Quiebra Decretada" petition following
cessation of debt payments.

The petition, once approved by the court, will transfer control
of the company's assets to a court-appointed trustee who will
supervise the liquidation proceedings.

Clerk No. 39 assists the court in this case.

The debtor can be reached at:

               Asociacion Francesa Filantropica y de Beneficencia
               La Rioja 951
               Buenos Aires


ELECTROMAC SA: Files for Reorganization in Buenos Aires Court
-------------------------------------------------------------
Electromac SA has requested for reorganization approval after
failing to pay its liabilities.

The reorganization petition, once approved by the court, will
allow Electromac SA 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. 11 in Buenos Aires.  Clerk No. 22 assists the court
in this case.


HSBC ARGENTINA: Secures VASCO's Online Retail and Customers Biz
---------------------------------------------------------------
HSBC Bank Argentina has secured both its retail and corporate
customers with VASCO Data Security International Inc.'s strong
Digipass authentication solution.

HSBC Argentina was the first bank in Argentina to offer its
online customers a strong two-factor authentication solution and
is the only bank to roll out DIGIPASS authentication devices for
both its retail and corporate clients.  The bank wanted to
implement the highest security standard using best-of-breed
solutions to protect their customers' accounts from unauthorized
access.  Another important factor for a successful roll out was a
high user acceptance.  HSBC Argentina turned to VASCO to implement
a secure, straightforward and user-friendly authentication
solution.  HSBC Argentina has so far distributed some 200,000
Digipass Go 3 devices.

"VASCO is honoured that a renowned bank as HSBC Bank Argentina
chose our strong authentication solutions to secure their online
banking application," said VASCO's President and Chief Operating
Officer, Jan Valcke.  "We want to congratulate HSBC for their
security awareness and with their visionary approach for using
Digipass for both their private and corporate customers."

                           About VASCO

VASCO Data Security International Inc. supplies strong
authentication and e-signature solutions and services with a
customer base of over 7,600 companies in more than 100 countries,
including more than 1,150 international financial institutions.  
The company's  prime markets are the financial sector, enterprise
security, e-commerce and e-government.

                      About HSBC Argentina

HSBC Bank Argentina is the principal HSBC operating company in
Argentina.  The bank has around 130 branches throughout the
country providing a full range of banking and financial products
and  services, including commercial, consumer and corporate
banking, to over 1.2  million customers.

                         *     *     *

As reported in the Troubled Company Reporter-Latin America on
Aug. 19, 2008, Moody's Investors Service changed the outlooks
on HSBC Bank Argentina SA's ratings with:

-- Foreign currency deposit rating of Caa1, stable from
    positive

-- Foreign currency senior debt rating of B2, stable from
    positive


PAN AMERICAN: Fitch Affirms BB/BB+ Currency Issuer Default Ratings
------------------------------------------------------------------
Fitch Ratings has affirmed the foreign currency issuer default
rating and the local currency issuer default rating for Pan
American Energy LLC at 'BB' and 'BB+', respectively.  Also, Pan
American's senior unsecured debt was affirmed at 'BB'.
Approximately ARS350 million of local and international bonds are
affected.  The Rating Outlook is Stable.

Pan American's ratings are supported by the company's long-lived
reserve base, modest debt levels and its ability to maintain up to
70% of its export proceeds abroad.  The two-notch foreign currency
IDR above the country ceiling of Argentina is supported by PAE
LLC's reliable strong internal cash flow generation, high level of
dollar-denominated revenues from exports relative to total debt,
its ability to maintain a material amount of export revenues
offshore, and the company's track record of payment during
stressed sovereign scenarios.

Operational strengths lie in the company's leading position in the
Argentine upstream business, high reserve replacement ratio,
competitive production costs and strong production growth
prospects.  A prudent financial strategy reflects a conservative
capital structure, with average gearing below its peers.  The
ratings incorporate the potential for additional debt to finance
PAE LLC's aggressive capital expenditure program that supports
healthy production growth forecasts.  The Stable Outlook reflects
the expectation that the increase in leverage will not prevent PAE
LLC from maintaining solid credit metrics.

Total debt-to-capitalization is expected to remain below 35%,
consistent with its rating category.  For the latest 12 months  
ending March 31, 2008, EBITDA was US$1.4 billion compared to
US$1.1 billion in 2005, an EBITDA margin of 48%.  EBITDA-to-
interest coverage remained sound at 16.4 times and EBITDA-to-net-
debt at 0.8.  However, credit metrics will remain exposed to local
inflation and the impact of government intervention in the
hydrocarbon sector.

Offsetting factors to the ratings include geographic
concentration, the company's negative free cash flows, upstream
exposure and Argentine operational risks.  Free cash flow remains
negative, as PAE LLC's capital expenditures and dividend payments
exceed cash flow from operations.  Export revenues from Argentina
represented approximately US$1.2 billion in 2007, accounting for
46% of consolidated sales.  This, coupled with its right to
maintain offshore up to 70% of export-related revenues, mitigates
the risks associated with having the majority of its assets and
cash-generating activities concentrated in Argentina.  PAE LLC has
a flawless record of meeting its own debt services, even during
periods of sovereign defaults and exchange controls.  At March
2008 exports were equivalent to net debt.

At March 31, 2008, PAE LLC's consolidated debt amounted to US$1.5
billion up from US$1 billion in 2006, but remained at conservative
gearing levels.  Core borrowing facilities are generally held at
the Argentine Branch level which accounts for almost US$1.4
million of total debt.

In March 2008 consolidated liquidity was US$299 million of which
67% was located in the Argentine Branch.  Most of the liquidity is
dollar denominated and located abroad.  To support its liquidity,
at March 2008 the Argentine Branch had unused uncommitted credit
facilities for approximately US$180 million.  PAE LLC has
demonstrated its ability to access financial markets and refinance
outstanding debt, which has been supported by a combination of a
conservative capital structure, increasing levels of cash
generation, and a manageable debt amortization schedule.

Headquartered in Buenos Aires, Argentina, Pan American Energy LLC  
-- http://www.panamericanenergy.com/-- produces over 220,000b/day  
barrels of oil per day and 440 million cubic feet of natural gas
per day and has interests in various portions of the oil and gas
value chain, including pipelines, oil terminals, gas distribution
and power generation. With certified reserves of 490 million
barrels of oil and 5.5 Tcf of natural gas, it is one of two
companies with oil and gas operations in all four of Argentina's
major production areas and Bolivia.


* ARGENTINA: Citigroup Gives “Sell” Ratings to Argentine Banks
--------------------------------------------------------------
James Attwood of Bloomberg reports that Argentine banks including
Banco Macro SA and BBVA Banco Frances SA were given "sell" ratings
in new coverage at Citigroup Inc., citing political and economic
concerns in the South American country.

Analysts, as cited by Bloomberg, disclosed that Argentina is
facing accelerating inflation, falling commodity process and
increasing difficulties in refinancing debt maturing from next
year.  In addition, the government has lost credibility at home
and abroad.

The economic and political factors "threaten to bring the banks
down (again) if a full-blown crisis eventually becomes
inevitable," even though the banking system is in a better
position than in 2000-2001 to withstand a crisis, Bloomberg says,
citing the analysts.

Citigroup, Bloomberg relates, also advised investors to sell Banco
Patagonia SA and Grupo Financiero Galicia SA, the holding company
for the nation's biggest private bank.

                           *     *     *

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



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

AMERICAN INTERNATIONAL: Sale Can Help Repay Loan, Says UBS Analyst
------------------------------------------------------------------
The sale of American International Group assets could help repay
the US$85 billion loan the company secured from the government,
Liam Pleven at The Wall Street Journal reports, citing UBS analyst
Andrew Kligerman.

AIG's CEO Edward Liddy laid out a plan to sell the company's
assets, including all of its domestic life-insurance operations
and a part of its foreign life business, to pay off the loan, WSJ
relates.  As reported in the Troubled Company Reporter on Oct. 6,
2008, AIG will refocus the company on its core property and
casualty insurance businesses, generate sufficient liquidity to
repay the outstanding balance of its loan and address its capital
structure.  AIG had drawn US$61 billion on the Federal Reserve
Bank of New York credit facility as of Sept. 30, 2008.  

WSJ relates that so much of AIG is being put on sale that the
company should be able to raise substantial sums.  The report
states that Mr. Kligerman said, "By my calculations, there's more
than enough to cover the loan," even given the upheaval in the
markets and there is still a pool of buyers "with reasonably high
demand."

According to WSJ, Mr. Kligerman said that AIG's domestic life-
insurance operations alone could fetch US$24 billion.  WSJ states
that Mr. Liddy will sell American Life Insurance Co., which is in
Japan, Europe, and the Middle East, among other places, and other
units that sell life insurance in Japan and Taiwan.  The report
says that the foreign life-insurance operations could be
particularly attractive to buyers.

Citing Mr. Liddy, WSJ relates that AIG prefers to sell off units
to companies with strong brand names, ratings, and balance sheets
"because they can be done with speed and you attract larger
buyers."  Manulife Financial Corp., Prudential Financial Inc., and
MetLife Inc., might pursue AIG's offerings, which could earn AIG
tens of billions of dollars, WSJ states.

Based in New York City, American International Group Inc. --
http://www.aig.com/-- (NYSE: AIG) is an international insurance
and financial services organization, with operations in more than
130 countries and jurisdictions.  The company is engaged through
subsidiaries in General Insurance, Life Insurance & Retirement
Services, Financial Services and Asset Management.

The company's British headquarters are located on Fenchurch Street
in London, continental Europe operations are based in La Defense,
Paris, and its Asian HQ is in Hong Kong.  AIG owns Ocean Finance,
a United Kingdom based company providing home owner loans,
mortgages and remortgages.  AIG operates in the UK with the brands
AIG UK, AIG Life and AIG Direct.  It has about 3,000 employees,
and sponsors the Manchester United football club.  In response to
redemption demands, AIG Life (UK) suspended redemptions of its AIG
Premier Bond money market fund on Sept. 19, 2008, in order to
provide an orderly withdrawal of assets.

The company has locations in Argentina, Aruba, Bahamas, Bermuda,
Brazil, Cayman Islands, Chile, Colombia, Dominica, Ecuador, El
Salvador, Grenada, Guatemala, Haiti, Honduras, Jamaica, Mexico,
Panama, Peru, Puerto Rico, Trinidad, Uruguay, Venezuela and Virgin
Islands.

              US$85,000,000,000 Federal Reserve Loan

The Federal Reserve Bank of New York extended to AIG a revolving
credit facility up to US$85 billion.  AIG's borrowings under the
revolving credit facility will bear interest, for each day, at a
rate per annum equal to three-month Libor plus 8.50%.  The
revolving credit facility will have a 24-month term and will be
secured by a pledge of assets of AIG and various subsidiaries.

The Credit Facility provides for a 79.9% equity interest in AIG.  
The Credit Facility provides for an initial gross commitment fee
of 2% of the total Credit Facility
on the closing date.

AIG, in a regulatory filing with the Securities and Exchange
Commission, said it will pay a commitment fee on undrawn amounts
at the rate of 8.5% per annum.  Interest and the commitment fees
are generally payable through an increase in the outstanding
balance under the Credit Facility.  Borrowings under the Credit
Facility are conditioned on the NY Fed being reasonably satisfied
with, among other things, AIG's corporate governance.

AIG is required to repay the Credit Facility from, among other
things, the proceeds of certain asset sales and issuances of debt
or equity securities. These mandatory repayments permanently
reduce the amount available to be borrowed under the Credit
Facility.

In a statement, the company said "AIG is a solid company with over
US$1 trillion in assets and substantial equity, but it has been
recently experiencing serious liquidity issues."

Standard & Poor's Ratings Services has revised the CreditWatch
status of most of its ratings on the AIG group of companies --
including its 'A-' long-term counterparty credit ratings on
American International Group Inc. and International Lease Finance
Corp. and the 'A+' counterparty credit and financial strength
ratings on most of AIG's insurance operating subsidiaries -- to
CreditWatch developing from CreditWatch negative.  

Fitch Ratings revised its Rating Watch on American International
Group, Inc. to Evolving from Negative.  Fitch viewed this
transaction as a favorable development that alleviates significant
near-term liquidity concerns.
   
The Troubled Company Reporter reported on Sept. 19, 2008 that that
Edward Liddy replaced Robert Willumstad as AIG's CEO.

                    *     *     *          

In a U.S. Securities and Exchange Commission filing dated
Aug. 6, 2008, AIG reported a net loss for the second quarter of
2008 of US$5.36 billion compared to 2007 second quarter net income
of US$4.28 billion.  Second quarter 2008 adjusted net loss was
US$1.32 billion, compared to adjusted net income of US$4.63
billion for the second quarter of 2007.  The continuation of
the weak U.S. housing market and disruption in the credit markets,
as well as global equity market volatility, had a substantial
adverse effect on AIG's results in the second quarter.

Net loss for the first six months of 2008 was US$13.16 billion,
compared to net income of US$8.41 billion in the first six months
of 2007.  Adjusted net loss for the first six months of 2008 was
US$4.88 billion, compared to adjusted net income of US$9.02
billion in the first six months of 2007.


AMERICAN INTERNATIONAL: Discloses 8.4% Equity Stake in eTelecare
----------------------------------------------------------------
American International Group, Inc., Philippine American Life and
General Insurance Company, AIG Life Holdings (International) LLC,
American International Reinsurance Company, Ltd., American
International Assurance Company (Bermuda) Limited, AIG Global
Investment Corp. (Asia) Ltd., AIG Asian Opportunity Fund LP and
AIG Asian Opportunity G.P., L.L.C. disclosed in a Securities and
Exchange Commission filing that they may be deemed to beneficially
own 2,457,832 shares of eTelecare Global Solutions, Inc.'s common
stock, representing 8.4% of the shares issued and outstanding.

Based in New York City, American International Group Inc. --
http://www.aig.com/-- (NYSE: AIG) is an international insurance   
and financial services organization, with operations in more than
130 countries and jurisdictions.  The company is engaged through
subsidiaries in General Insurance, Life Insurance & Retirement
Services, Financial Services and Asset Management.

The company's British headquarters are located on Fenchurch Street
in London, continental Europe operations are based in La Defense,
Paris, and its Asian HQ is in Hong Kong.  AIG owns Ocean Finance,
a United Kingdom based company providing home owner loans,
mortgages and remortgages.  AIG operates in the UK with the brands
AIG UK, AIG Life and AIG Direct.  It has about 3,000 employees,
and sponsors the Manchester United football club.  In response to
redemption demands, AIG Life (UK) suspended redemptions of its AIG
Premier Bond money market fund on Sept. 19, 2008, in order to
provide an orderly withdrawal of assets.

The company has locations in Argentina, Aruba, Bahamas, Bermuda,
Brazil, Cayman Islands, Chile, Colombia, Dominica, Ecuador, El
Salvador, Grenada, Guatemala, Haiti, Honduras, Jamaica, Mexico,
Panama, Peru, Puerto Rico, Trinidad, Uruguay, Venezuela and Virgin
Islands.

              US$85,000,000,000 Federal Reserve Loan

The Federal Reserve Bank of New York has extended to AIG a
revolving credit facility up to US$85 billion. AIG's borrowings
under the revolving credit facility will bear interest, for each
day, at a rate per annum equal to three-month Libor plus 8.50%.  
The revolving credit facility will have a 24-month term and will
be secured by a pledge of assets of AIG and various subsidiaries.  
The revolving credit facility will contain affirmative and
negative covenants, including a covenant to pay down the facility
with the proceeds of asset sales.

The summary of terms also provides for a 79.9% equity interest in
AIG.  The corporate approvals and formalities necessary to create
this equity interest will depend upon its form.

In a statement, the company said "AIG is a solid company with over
US$1 trillion in assets and substantial equity, but it has been
recently experiencing serious liquidity issues."

Standard & Poor's Ratings Services has revised the CreditWatch
status of most of its ratings on the AIG group of companies --
including its 'A-' long-term counterparty credit ratings on
American International Group Inc. and International Lease Finance
Corp. and the 'A+' counterparty credit and financial strength
ratings on most of AIG's insurance operating subsidiaries -- to
CreditWatch developing from CreditWatch negative.  

Fitch Ratings revised its Rating Watch on American International
Group, Inc. to Evolving from Negative.  Fitch viewed this
transaction as a favorable development that alleviates significant
near-term liquidity concerns.
   
The Troubled Company Reporter reported on Sept. 19, 2008, that
that Edward Liddy replaced Robert Willumstad as AIG's CEO.

                       *     *     *          

In a U.S. Securities and Exchange Commission filing dated Aug. 6,
2008, AIG reported a net loss for the second quarter of 2008 of
US$5.36 billion compared to 2007 second quarter net income of
US$4.28 billion.  Second quarter 2008 adjusted net loss was
US$1.32 billion, compared to adjusted net income of US$4.63
billion for the second quarter of 2007.  The continuation of the
weak U.S. housing market and disruption in the credit markets, as
well as global equity market volatility, had a substantial adverse
effect on AIG's results in the second quarter.

Net loss for the first six months of 2008 was US$13.16 billion,
compared to net income of US$8.41 billion in the first six months
of 2007.  Adjusted net loss for the first six months of 2008 was
US$4.88 billion, compared to adjusted net income of US$9.02
billion in the first six months of 2007.


AMERICAN INTERNATIONAL: Robert Sandler Retires From Firm
--------------------------------------------------------
American International Group, Inc. disclosed in a Securities and
Exchange Commission filing that named executive officer Robert M.
Sandler has retired from AIG following a change in his position.
Mr. Sandler, 66, had been employed by AIG for over 39 years.

On Sept. 22, 2008, AIG's retention program became effective.  The
program applies to approximately 130 executives and consists of
cash awards payable 60 percent in December 2008 and 40 percent in
December 2009.  

In connection with Mr. Sandler's retirement, AIG entered into an
agreement and release that implements the retirement benefits of
AIG's long-term compensation plans and provides the separation pay
and other benefits to which AIG executives are entitled under
AIG's Executive Severance Plan for terminations without cause.  
These benefits include a payment of a total of US$2,514,168 in
separation pay, payable over two years.

Based in New York City, American International Group Inc. --
http://www.aig.com/-- (NYSE: AIG) is an international insurance   
and financial services organization, with operations in more than
130 countries and jurisdictions.  The company is engaged through
subsidiaries in General Insurance, Life Insurance & Retirement
Services, Financial Services and Asset Management.

The company's British headquarters are located on Fenchurch Street
in London, continental Europe operations are based in La Defense,
Paris, and its Asian HQ is in Hong Kong.  AIG owns Ocean Finance,
a United Kingdom based company providing home owner loans,
mortgages and remortgages.  AIG operates in the UK with the brands
AIG UK, AIG Life and AIG Direct.  It has about 3,000 employees,
and sponsors the Manchester United football club.  In response to
redemption demands, AIG Life (UK) suspended redemptions of its AIG
Premier Bond money market fund on Sept. 19, 2008, in order to
provide an orderly withdrawal of assets.

The company has locations in Argentina, Aruba, Bahamas, Bermuda,
Brazil, Cayman Islands, Chile, Colombia, Dominica, Ecuador, El
Salvador, Grenada, Guatemala, Haiti, Honduras, Jamaica, Mexico,
Panama, Peru, Puerto Rico, Trinidad, Uruguay, Venezuela and Virgin
Islands.

              US$85,000,000,000 Federal Reserve Loan

The Federal Reserve Bank of New York has extended to AIG a
revolving credit facility up to US$85 billion. AIG's borrowings
under the revolving credit facility will bear interest, for each
day, at a rate per annum equal to three-month Libor plus 8.50%.  
The revolving credit facility will have a 24-month term and will
be secured by a pledge of assets of AIG and various subsidiaries.  
The revolving credit facility will contain affirmative and
negative covenants, including a covenant to pay down the facility
with the proceeds of asset sales.

The summary of terms also provides for a 79.9% equity interest in
AIG.  The corporate approvals and formalities necessary to create
this equity interest will depend upon its form.

In a statement, the company said "AIG is a solid company with over
US$1 trillion in assets and substantial equity, but it has been
recently experiencing serious liquidity issues."

Standard & Poor's Ratings Services has revised the CreditWatch
status of most of its ratings on the AIG group of companies --
including its 'A-' long-term counterparty credit ratings on
American International Group Inc. and International Lease Finance
Corp. and the 'A+' counterparty credit and financial strength
ratings on most of AIG's insurance operating subsidiaries -- to
CreditWatch developing from CreditWatch negative.  

Fitch Ratings revised its Rating Watch on American International
Group, Inc. to Evolving from Negative.  Fitch viewed this
transaction as a favorable development that alleviates significant
near-term liquidity concerns.
   
The Troubled Company Reporter reported on Sept. 19, 2008, that
that Edward Liddy replaced Robert Willumstad as AIG's CEO.

                       *     *     *          

In a U.S. Securities and Exchange Commission filing dated Aug. 6,
2008, AIG reported a net loss for the second quarter of 2008 of
US$5.36 billion compared to 2007 second quarter net income of
US$4.28 billion.  Second quarter 2008 adjusted net loss was
US$1.32 billion, compared to adjusted net income of US$4.63
billion for the second quarter of 2007.  The continuation of the
weak U.S. housing market and disruption in the credit markets, as
well as global equity market volatility, had a substantial adverse
effect on AIG's results in the second quarter.

Net loss for the first six months of 2008 was US$13.16 billion,
compared to net income of US$8.41 billion in the first six months
of 2007.  Adjusted net loss for the first six months of 2008 was
US$4.88 billion, compared to adjusted net income of US$9.02
billion in the first six months of 2007.



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

BANCO DO BRASIL: To Merge Besc and Bescri for BRL685 Million
------------------------------------------------------------
Noticias Financieras reports that Banco do Brasil SA will
incorporate Santa Catarina state-based banks Banco do Estado de
Santa Catarina (Besc) and Bescri, for BRL685 million, to be paid
through an issue of 23.1 million shares.

The deal, according to Bnamericas, will issue one BB share for
approximately every 12.1 ordinary or preferred shares of Besc or
every 1,592 shares of Bescri, which is BRL411 million for Besc and
BRL274 million for Bescri.

Banco do Brasil SA is Brazil's federal bank and is the largest
in Latin America with some 20 million clients and more than
7,000 points of sale (3,200 branches) in Brazil, and 34 offices
and partnerships in 26 other countries.  In addition to its
traditional retail banking services, Banco do Brasil underwrites
and sells bonds, conducts asset trading, offers investors
portfolio management services, conducts financial securities
advising, and provides market analysis and research.

                          *     *     *

On Feb. 29, 2008, Moody's Investors Rating Service assigned a
Ba2 foreign currency deposit rating to Banco do Brasil.


BANCO DAYCOVAL: S&P Shifts Outlook to Stable; Holds BB-/B Ratings
-----------------------------------------------------------------
Standard & Poor's Ratings Services has revised the outlooks on
Banco Daycoval S.A. and Banco Indusval S.A. to stable from
positive.  At the same time, it affirmed the ratings on the two
Brazil-based banks, including the 'BB-' long-term and 'B' short-
term counterparty credit ratings on Daycoval and the 'B+' long-
term and 'B' short-term counterparty credit ratings on Indusval.
     
"The revised outlooks on Daycoval and Indusval incorporate the
more challenging operating environment for financial institutions
in Brazil as a consequence of the turmoil in the global financial
markets," said S&P's credit analyst Marcelo Peixoto.
     
Among the Brazilian financial institutions rated by S&P, these
two banks were the only ones that had positive outlooks,
indicating that they could be upgraded if they maintained their
rapid growth pattern along with their solid financial performance.  
However, the current business environment for financial
institutions, with tightening liquidity in the industry and the
potential for narrower margins, limits upside potential for any
bank within the 12 to 18-month time frame for outlooks on
speculative-grade entities.
     
"The outlook revision doesn't mean that we see a weakening in
these banks' business profile," said Mr. Peixoto.  "However, the
limited funding options available to niche banks constitute a
financial challenge and the main risk factor in the ratings for
the segment as a whole."
     
Banks in the niche segment are rated in the 'B' and 'BB'
categories.
     
S&P sees the strong capitalization of most of the segment's banks
after their listing on the Sao Paulo Stock Exchange (BOVESPA) in
2007, good credit indicators, and recent actions taken by the
Central Bank of Brazil to increase the liquidity available to the
system, as providing some cushion against the volatility the
industry currently faces.  Although S&P projects an increase in
funding costs, potential deterioration of asset quality, and a
consequent impact on profitability in 2008 and 2009, at this time
it doesn't expect downgrades as a result of the current market
turmoil.

Headquartered in Sao Paulo, Brazil, Banco Daycoval SA started its
activities in 1968, with the creation of Daycoval DTVM and Valco
Corretora de Valores.  Brothers Ibrahim and Sasson Dayan control
the bank.  It is the core business of its shareholders and
specializes in financing small and medium-sized companies, backed
by receivables.  It also operates with consignment lending for
payroll deduction and consumer financing.  Since June 2007, the
bank has had 29% of its shares traded at Bovespa on the New
Brazilian Stock Market.  These shares enjoy a tag-along privilege,
giving minority shareholders 100% of the value of the block of
controlling shares in the event of the sale of the institution.


BANCO INDUSVAL: S&P Shifts Outlook to Stable; Affirms B+/B Ratings
------------------------------------------------------------------
Standard & Poor's Ratings Services has revised the outlooks on
Banco Daycoval S.A. and Banco Indusval S.A. to stable from
positive.  At the same time, it affirmed the ratings on the two
Brazil-based banks, including the 'BB-' long-term and 'B' short-
term counterparty credit ratings on Daycoval and the 'B+' long-
term and 'B' short-term counterparty credit ratings on Indusval.
     
"The revised outlooks on Daycoval and Indusval incorporate the
more challenging operating environment for financial institutions
in Brazil as a consequence of the turmoil in the global financial
markets," said S&P's credit analyst Marcelo Peixoto.
     
Among the Brazilian financial institutions rated by S&P, these
two banks were the only ones that had positive outlooks,
indicating that they could be upgraded if they maintained their
rapid growth pattern along with their solid financial performance.  
However, the current business environment for financial
institutions, with tightening liquidity in the industry and the
potential for narrower margins, limits upside potential for any
bank within the 12 to 18-month time frame for outlooks on
speculative-grade entities.
     
"The outlook revision doesn't mean that we see a weakening in
these banks' business profile," said Mr. Peixoto.  "However, the
limited funding options available to niche banks constitute a
financial challenge and the main risk factor in the ratings for
the segment as a whole."
     
Banks in the niche segment are rated in the 'B' and 'BB'
categories.
     
S&P sees the strong capitalization of most of the segment's banks
after their listing on the Sao Paulo Stock Exchange (BOVESPA) in
2007, good credit indicators, and recent actions taken by the
Central Bank of Brazil to increase the liquidity available to the
system, as providing some cushion against the volatility the
industry currently faces.  Although S&P projects an increase in
funding costs, potential deterioration of asset quality, and a
consequent impact on profitability in 2008 and 2009, at this time
it doesn't expect downgrades as a result of the current market
turmoil.

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


FORD MOTOR: Conditions Satisfied for UAW Settlement Deal
--------------------------------------------------------
Ford Motor Co. disclosed in a Securities and Exchange Commission
filing that it is updating certain of the guidance provided in its
Quarterly Report on Form 10-Q for the period ended June 30, 2008.

Due to deteriorating economic conditions and other factors, the
company expects that results for its Volvo segment will be worse,
instead of improved, in the second half of 2008 compared with the
first half of this year.

Ford, the UAW, and class representatives of former UAW-represented
Ford employees filed a Settlement Agreement with a federal
district court in April 2008 relating to retiree health care
coverage.

The Settlement Agreement provides that a new retiree health care
plan, to be funded by a new Voluntary Employee Beneficiary
Association trust, would become permanently responsible for
providing retiree health care benefits to covered UAW employees
and eligible spouses and dependents on the later of December 31,
2009 or final court approval of the Settlement Agreement and
Ford's completion of discussions with the Securities and Exchange
Commission regarding satisfactory accounting treatment.  

Ford would fund the New VEBA through a number of sources,
including funds that currently existed in voluntary employee
beneficiary association trusts, Ford-issued convertible and term
notes, and cash on hand.  

The parties to the Settlement Agreement acknowledged that Ford's
obligations to pay into the New VEBA are fixed and capped as
provided in the Settlement Agreement and that Ford is not
responsible for, and does not provide a guarantee of:

(1) the payment for future benefits to plan participants;

(2) the asset returns of the funds in the New VEBA; or

(3) the sufficiency of assets in the New VEBA to fully pay the
     obligations of the New VEBA or the New Plan.

Effectiveness of the Settlement Agreement was conditioned upon
each of these:  

(1) issuance of a class certification order by the United
     States District Court for the Eastern District of Michigan
     that defined the class in the same manner as Class is
     defined in the Settlement Agreement;

(2) Court approval of the Settlement Agreement in a form
     acceptable to Ford, the UAW and the Class; and

(3) successful completion of discussions between Ford and the
     SEC regarding satisfactory accounting treatment.  

As of Sept. 30, 2008, each of the conditions has been satisfied,
and the period for appeal of Court approval has expired with no
appeal having been filed.

The company will re-measure its UAW hourly retiree health care
obligations, and expect to record a significant curtailment gain
in the third quarter of 2008.  

                    About Ford Motor Co.

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

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

                         *     *     *

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

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


GENERAL MOTORS: Joins Fiat in Slashing Output at Brazil Plants
--------------------------------------------------------------
General Motors Corp. and Fiat Spa's Brazilian units will cut
vehicle output in the country in October and November after asking
some workers to take vacations early, Heloiza Canassa writes for
Bloomberg News.

GM asked workers at its three Sao Paulo plants to take time off
beginning October, Carlos Augusto Souza, a company's spokesman,
said, Bloomberg reports.  He did not provide details.

Bloomberg also relates that about 1,700 of Fiat's 15,000 workers
at a Betim plant will take at least 10 days of vacation, according
Guilherme Pena, a spokesman for Fiat do Brasil, disclosed in a
telephone interview.

Bloomberg observes that automakers are cutting production after
four central bank interest rates increases pushed car-loan costs
higher and sapped demand.  Auto registrations rose 4% to 244,800
units in August, the slowest pace in two years, according to
Brazil's Automakers Association.  That compares to a 33% increase
in July.

Fiat, according to Bloomberg, says the decision will lead to a
decrease of 10% or 300 units in its daily production.

Automakers in Brazil historically shut plants during the year-end
holidays, Bloomberg relates, citing Mr. Pena said.  Fiat last year
maintained about a third of production during holidays.

According to Bloomberg, Fiat is Brazil’s largest automaker holding
26% of the vehicle market, according to an association known as
Anfavea.  The company sold 394,400 units through August 2008.  GM,
with 22% market share in Brazil, ranks third.

                          About Fiat SpA

Based in Turin, Italy, Fiat SpA -- http://www.fiatgroup.com/--
designs, manufactures, and sells automobiles, trucks, wheel
loaders, excavators, telehandlers, tractors and combine
harvesters.  Outside Europe, the company has subsidiaries in the
United States, Japan, India, China, Mexico, Brazil, and
Argentina.

                      About General Motors

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

GM Europe is based in Zurich, Switzerland, while General Motors
Latin America, Africa and Middle East is headquartered in
Miramar, Florida.

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


GENERAL MOTORS: Unable to Meet Demand, Factory to Run Overtime
--------------------------------------------------------------
Sharon Terlep at Dow Jones Newswires reports that General Motors
Corp. said that it will keep its sole U.S. compact-car factory
running on overtime for the remainder of this year.

According to Dow Jones, GM is still unable to meet demand for
fuel-efficient small cars.  It is running short on Chevrolet
Cobalt cars despite adding a third shift at its Lordstown, Ohio,
assembly plant, the report says.  

Dow Jones relates that GM's global sales analyst Mike DiGiovanni
said in a conference call on Wednesday, "The increased
availability [of Cobalt] is still kind of out in front of us.  
We're in good shape and we think we'll have adequate availability
to sell into that segment, which is a pretty good segment right
now."  GM won't build new car assembly plants or covert truck
factories, and will manage the rising demand by adding shift as
existing locations, Dow Jones reports.  

                   About General Motors

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

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

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


GENERAL MOTORS: Amended GSA and MRA Take Effect
-----------------------------------------------
General Motors Corporation disclosed in a Securities and Exchange
Commission filing that an Amended Global Services Agreement and
the Master Restructuring Agreement between the company and Delphi
Corporation, as approved by the U.S. Bankruptcy Court for the
Southern District of New York on Sept. 26, 2008, became effective
on Sept. 29, 2008.

A full-text copy of the Amended GSA and MRA is available for free
at http://ResearchArchives.com/t/s?3330

                      About Delphi Corp.

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

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

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

(Delphi Bankruptcy News, Issue 146; Bankruptcy Creditors' Service
Inc., http://bankrupt.com/newsstand/or 215/945-7000)

                   About General Motors

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

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

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


GENERAL MOTORS: Exchanges 16MM Shares for Series D Debentures
-------------------------------------------------------------
General Motors Corporation disclosed in a Securities and Exchange
Commission filing that it has issued an aggregate of 16,000,000
shares of its common stock, par value US$1-2/3 per share in
exchange for US$176,417,800 principal amount of its 1.50% Series D
Convertible Senior Debentures due 2009, beneficially owned by a
qualified institutional holder of the Debentures.

The Agreement provided that the amount of Common Stock GM
exchanged for the Debentures was based on the daily volume
weighted average price of the Common Stock on the New York Stock
Exchange during a three-day pricing period.

GM did not receive any cash proceeds as a result of the exchange
of its Common Stock for the Debentures, which Debentures have been
retired and cancelled. GM entered into the Agreement to reduce its
debt and interest costs, increase its equity and, thereby, improve
its liquidity.

                    About General Motors

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

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

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


SADIA SA: Weak Credits Prompt S&P's Credit Rating Cut to BB-/Neg.
-----------------------------------------------------------------
Standard & Poor's Ratings Services has lowered its long-term
corporate credit rating on Sadia S.A. and the rating on subsidiary
Sadia Overseas Ltd.'s US$250 million in senior unsecured notes to
'BB' from 'BB+'.  At the same time, S&P removed the ratings from
CreditWatch, where they had been placed with negative implications
on Sept. 26, 2008.  The outlook on the ratings is negative.
     
"The downgrade reflects the weakening of the company's credit
metrics after it faced losses in unwinding certain derivative
transactions in third-quarter 2008," said S&P's credit analyst
Milena Zaniboni.
     
Losses on these transactions totaled BRL760 million.  To preserve
its liquidity, Sadia chose to take out additional short-term
credit lines, which also led to deterioration in its debt
profile.
     
The ratings on Sadia reflect the inherent volatility of the
company's operations given the characteristics of the meat and
food-processing industries and the pending definition of the
company's financial strategy regarding taking arbitrage and
derivative positions.
     
These negative factors are somewhat mitigated by Sadia's leading
market position in Brazil and its solid export capabilities, with
a growing presence of branded products in international markets;
low cost position and resilient profitability compared with those
of peers; and progressively more diversified product and client
mix.

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.


SADIA OVERSEAS: S&P Cuts US$250 Million Senior Notes Rating to BB-
------------------------------------------------------------------
Standard & Poor's Ratings Services has lowered its long-term
corporate credit rating on Sadia S.A. and the rating on subsidiary
Sadia Overseas Ltd.'s US$250 million in senior unsecured notes to
'BB' from 'BB+'.  At the same time, S&P removed the ratings from
CreditWatch, where they had been placed with negative implications
on Sept. 26, 2008.  The outlook on the ratings is negative.
     
"The downgrade reflects the weakening of the company's credit
metrics after it faced losses in unwinding certain derivative
transactions in third-quarter 2008," said S&P's credit analyst
Milena Zaniboni.
     
Losses on these transactions totaled BRL760 million.  To preserve
its liquidity, Sadia chose to take out additional short-term
credit lines, which also led to deterioration in its debt
profile.
     
The ratings on Sadia reflect the inherent volatility of the
company's operations given the characteristics of the meat and
food-processing industries and the pending definition of the
company's financial strategy regarding taking arbitrage and
derivative positions.
     
These negative factors are somewhat mitigated by Sadia's leading
market position in Brazil and its solid export capabilities, with
a growing presence of branded products in international markets;
low cost position and resilient profitability compared with those
of peers; and progressively more diversified product and client
mix.

Sadia Overseas Ltd. is a subsidiary of Brazil-based food producer
Sadia SA.


* BRAZIL: S&P Revises Outlook on 6 Infrastructure Firms to Stable
-----------------------------------------------------------------
Standard & Poor's Ratings Services has revised the outlook on six
Brazilian corporations and infrastructure companies to stable from
positive, following worsening global economic conditions, credit
market volatility, and the combined effect of these on the
Brazilian domestic economy.  At the same time, S&P affirmed the
ratings on these entities and their respective issues.
     
"The outlook revision reflects the tighter domestic credit
markets, higher interest and funding costs, and substantial
currency volatility because of the worsening global economic
environment," said S&P's credit analyst Milena Zaniboni.  "These
developments will reduce the possibility of upgrades on these
entities in the medium term."
     
With most of these companies, the positive outlook reflected
expectations that a benign domestic economy would allow them to
further strengthen their financial profiles by either improving
cash flows or reducing total debt in the next year or so.  This
scenario has become less likely in the past few weeks as credit
availability in bank markets has declined -- in particular,
availability of trade-related loans.  Also, extreme currency
volatility and higher interest cost make it more difficult for
companies to roll over their day-to-day working capital loans.  As
a result of higher domestic interest rates, a weakening of
domestic economic activity has also become more likely; this would
hurt the companies' ability to continue strengthening their free
cash flows.
     
Some entities are also in the midst of significant capital
expenditure plans.  The profitability resulting from these plans
may be at least temporarily affected by worsening economic
conditions, and their funding may become more challenging and
costly because of the tightening in credit availability.
     
Although for export companies the sizable currency depreciation
will provide incremental cash flows and improve cost
competitiveness, S&P believes that weakening global demand will
affect volumes and prices alike, and that the tighter credit
environment will make it harder for companies to carry out their
financial strategies. These challenges will at least offset export
gains in the short-to-medium term.
     
The ratings affirmation and stable outlook on these entities
reflect S&P's belief that adverse economic conditions have not yet
caused their credit quality to deteriorate relative to each of
their respective rating categories.  Among the affected entities,
Companhia Energetica de Sao Paulo, Centrais Eletricas
Matogrossenses S.A., and CP Cimento e Participacoes S.A. are
particularly more vulnerable to the worsening in credit markets
because they report a higher amount of short-term debt and lower
liquidity.  

However, S&P still believes that these weaknesses are reflected
fully in the ratings assigned. Independencia S.A. reports sound
liquidity, but as a beef company, it faces challenging industry
conditions because of high raw material costs.  Conditions for
homebuilders are also weakening, with tighter credit availability
hurting PDG Realty S.A. Empreendimentos e Participacoes.  And MRS
Logística S.A. has reported sound liquidity and cash flows, but
the company is currently making significant capital expenditures
to expand capacity.  S&P will continue to monitor these rated
entities for any deterioration in credit quality amid the
unprecedented pace of change in global markets.

Ratings Affirmed; Outlook Action   To                From

Companhia Energetica de Sao Paulo

Corporate Credit Rating     
  -- Global Scale               B/Stable/--     B/Positive/--
  -- National Scale           brBBB-/Stable/--  rBBB-/Positive/--

Centrais Eletricas Matogrossenses S.A. (Cemat)

Corporate Credit Rating
  -- Global Scale               B/Stable/--     B/Positive/--

CP Cimento e Participacoes S.A.

Corporate Credit Rating
   -- National Scale          brB+/Stable/--    brB+/Positive/--

Independencia S.A.

Corporate Credit Rating
   -- Global Scale              B/Stable/--     B/Positive/--

MRS Logistica S.A.

Corporate Credit Rating
  -- Global Scale              BB/Stable/--     BB/Positive/--
  -- National Scale          brAA-/Stable/--   brAA-/Positive/--

PDG Realty S.A. Empreendimentos e Participacoes

Corporate Credit Rating
  -- National Scale          brBBB+/Stable/--  brBBB+/Positive/--



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

ALTA PARTNERS: Proof of Claim Filing Deadline Is Oct. 15
--------------------------------------------------------
Alta Partners Holdings LDC's creditors have until Oct. 15, 2008,
to prove their claims to Hamilton Fiduciary Services Limited, the
company's liquidator, or be excluded from receiving any
distribution or payment.

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

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

The liquidator can be reached at:

               Hamilton Fiduciary Services Limited
               c/o Williams House, 20 Reid Street,
               Hamilton, Bermuda

                            or

               Trulaw Corporate Services Ltd.
               5th Floor, Anderson Square Building
               Shedden Road, Grand Cayman
               Cayman Islands
                 
Contact for inquiries:

               Pawel Stempowski
               Tel: (345) 914-4601
               Fax: (345) 815-0551


CANTRADE TRUST: Holding Final Shareholders Meeting on Oct. 15
-------------------------------------------------------------
Cantrade Trust Company (Cayman) Ltd. will hold its final
shareholders meeting on Oct. 15, 2008, at 10:00 a.m., the
registered office of the company.

These matters will be taken up during the meeting:

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

Cantrade Trust's shareholder decided on Sept. 4, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

               David A.K. Walker and J.I. Nicholas Freeland
               c/o PricewaterhouseCoopers Cayman Islands,
               P.O. Box 258
               Strathvale House, George Town
               Grand Cayman, Cayman Islands

Contact for inquiries:

               Richard Mottershead
               Tel: (345) 914-8656
               Fax: (345) 945-4237


EFFICIENT GLOBAL: Proof of Claim Filing Is Until Oct. 15
--------------------------------------------------------
Efficient Global Currency Fund SPC's creditors have until Oct. 15,
2008, to prove their claims to DMS Corporate Services Ltd., the
company's liquidator, or be excluded from receiving any
distribution or payment.

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

Efficient Global's shareholder decided on June 27, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

               DMS Corporate Services Ltd
               c/o dms House, 2nd Floor
               P.O. Box 1344
               Grand Cayman, Cayman Islands

Contact for inquiries:

               Bernadette Bailey-Lewis
               Tel: (345) 946-7665
               Fax: (345) 946-7666


EMERALD INVESTMENT: Deadline for Claims Filing Is Oct. 15
---------------------------------------------------------
Emerald Investment Grade CBO II Ltd.'s creditors have until
Oct. 15, 2008, to prove their claims to David Dyer, the company's
liquidator, or be excluded from receiving any distribution or
payment.

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

Emerald Investment's shareholders agreed on Sept. 5, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

               David Dyer
               c/o Deutsche Bank (Cayman) Limited
               P.O. Box 1984
               Boundary Hall Cricket Square
               171 Elgin Avenue, George Town
               Grand Cayman, Cayman Islands


GAINSBOROUGH GLOBAL: Claims Filing Deadline Is on Oct. 15
---------------------------------------------------------
Gainsborough Global Offshore Fund Ltd.'s creditors have until
October 15, 2008, to prove their claims to DMS Corporate Services
Ltd., the company's liquidator, or be excluded from receiving any
distribution or payment.

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

Gainsborough Global's shareholder decided on July 30, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

               DMS Corporate Services Ltd
               c/o dms House, 2nd Floor
               P.O. Box 1344
               Grand Cayman, Cayman Islands

Contact for inquiries:

               Bernadette Bailey-Lewis
               Tel: (345) 946-7665
               Fax: (345) 946-7666


GEMS-J1 CAYMAN: Proof of Claim Filing Deadline Is Oct. 15
---------------------------------------------------------
Gems-J1 Cayman Holdings Ltd.'s creditors have until Oct. 15, 2008,
to prove their claims to David Dyer, the company's liquidator, or
be excluded from receiving any distribution or payment.

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

Gems-J1 Cayman's shareholders agreed on Sept. 5, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

               David Dyer
               c/o Deutsche Bank (Cayman) Limited
               P.O. Box 1984
               Boundary Hall Cricket Square
               171 Elgin Avenue, George Town
               Grand Cayman, Cayman Islands


HACHI HOLDINGS: Holds Final Shareholders Meeting on Oct. 15
-----------------------------------------------------------
Hachi Holdings Ltd. will hold its final shareholders meeting on
Oct. 15, 2008, at the offices of Maples Finance Limited, Boundary
Hall, Cricket Square, George Town, Grand Cayman, Cayman Islands.

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

Hachi Holdings' shareholders decided on June 26, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

                Mark Hill and Giles Le Sueur
                c/o Maples Finance Jersey Limited
                2nd Floor Le Masurier House
                La Rue Le Masurier
                St. Helier, Jersey JE2 4YE


HAMPTON CDO: Deadline for Proof of Claim Filing Is Oct. 15
----------------------------------------------------------
Hampton CDO Ltd.'s creditors have until Oct. 15, 2008, to prove
their claims to David Dyer, the company's liquidator, or be
excluded from receiving any distribution or payment.

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

Hampton CDO's shareholders agreed on Sept. 5, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidator can be reached at:

               David Dyer
               c/o Deutsche Bank (Cayman) Limited
               P.O. Box 1984
               Boundary Hall Cricket Square
               171 Elgin Avenue, George Town
               Grand Cayman, Cayman Islands


JLOC 2001-1: Filing for Proof of Claim Is Until Oct. 15
-------------------------------------------------------
JLOC 2001-1 Ltd.'s creditors have until Oct. 15, 2008, to prove
their claims to David Dyer, the company's liquidator, or be
excluded from receiving any distribution or payment.

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

JLOC 2001-1's shareholders agreed on Sept. 5, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidator can be reached at:

               David Dyer
               c/o Deutsche Bank (Cayman) Limited
               P.O. Box 1984
               Boundary Hall Cricket Square
               171 Elgin Avenue, George Town
               Grand Cayman, Cayman Islands


PYLOS LIMITED: To Hold Final Shareholders Meeting on Oct. 15
------------------------------------------------------------
Pylos Ltd. will hold its final shareholders meeting on Oct. 15,
2008, at 10:00 a.m., at the offices of BNP Paribas Bank & Trust
Cayman Limited, 3rd Floor Royal Bank House, Shedden Road, George
Town, Grand Cayman, Cayman Islands.

These matters will be taken up during the meeting:

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

Pylos' shareholders agreed on Sept. 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:

               Piccadilly Cayman Limited
               c/o BNP Paribas Bank & Trust Cayman Limited
               3rd Floor Royal Bank House, Shedden Road
               George Town, Grand Cayman
               Cayman Islands

Contact for inquiries:

               Ellen J. Christian
               Tel: (345) 945-9208
               Fax: (345) 945-9210
               Fax: (345)949-8258


ROMARIO FINANCE: Deadline for Filing of Claims Is Oct. 15
---------------------------------------------------------
Romario Finance Company's creditors have until Oct. 15, 2008, to
prove their claims to David Dyer, the company's liquidator, or be
excluded from receiving any distribution or payment.

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

Romario Finance's shareholders agreed on Sept. 5, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

               David Dyer
               c/o Deutsche Bank (Cayman) Limited
               P.O. Box 1984
               Boundary Hall Cricket Square
               171 Elgin Avenue, George Town
               Grand Cayman, Cayman Islands


SAFE FUNDING: Deadline for Proof of Claim Filing Is Oct. 15
-----------------------------------------------------------
Safe Funding Ltd.'s creditors have until Oct. 15, 2008, to prove
their claims to David Dyer, the company's liquidator, or be
excluded from receiving any distribution or payment.

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

Safe Funding's shareholders agreed on Sept. 5, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidator can be reached at:

               David Dyer
               c/o Deutsche Bank (Cayman) Limited
               P.O. Box 1984
               Boundary Hall Cricket Square
               171 Elgin Avenue, George Town
               Grand Cayman, Cayman Islands


SK CORPORATION: Proof of Claim Filing Deadline Is Oct. 15
---------------------------------------------------------
SK Corporation's creditors have until Oct. 15, 2008, to prove
their claims to David Dyer, the company's liquidator, or be
excluded from receiving any distribution or payment.

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

SK Corporation's shareholders agreed on Sept. 5, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

               David Dyer
               c/o Deutsche Bank (Cayman) Limited
               P.O. Box 1984
               Boundary Hall Cricket Square
               171 Elgin Avenue, George Town
               Grand Cayman, Cayman Islands


SUNDIAL FUND: Deadline for Filing Of Claims Is Oct. 15
------------------------------------------------------
Sundial Fund Ltd.'s creditors have until Oct. 15, 2008, to prove
their claims to S.L.C. Whicker and K.D. Blake, the company's
liquidators, or be excluded from receiving any distribution or
payment.

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

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

The liquidators can be reached at:

                S.L.C. Whicker and K.D. Blake
                c/o KPMG
                P.O. Box 493
                Grand Cayman, Cayman Islands
                Tel: (345) 949-4800
                Fax: (345) 949-7164

Contact for inquiries:

                Krissa Jeffers
                Tel: (345) 914-4398
                Fax: (345) 949-7164


SUNDIAL MASTER: Filing for Proof of Claim Is Until Oct. 15
----------------------------------------------------------
Sundial Master Fund Ltd.'s creditors have until Oct. 15, 2008, to
prove their claims to S.L.C. Whicker and K.D. Blake, the company's
liquidators, or be excluded from receiving any distribution or
payment.

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

Sundial Master's shareholder decided on Aug. 18, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

                S.L.C. Whicker and K.D. Blake
                c/o KPMG
                P.O. Box 493
                Grand Cayman, Cayman Islands
                Tel: (345) 949-4800
                Fax: (345) 949-7164

Contact for inquiries:

                Krissa Jeffers
                Tel: (345) 914-4398
                Fax: (345) 949-7164


TAMACHI TTP: Holding Final Shareholders Meeting on Oct. 15
----------------------------------------------------------
Tamachi TTP Holdings will hold its final shareholders meeting on
Oct. 15, 2008, at the offices of Maples Finance Limited, Boundary
Hall, Cricket Square, George Town, Grand Cayman, Cayman Islands.

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

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

The liquidators can be reached at:

                Mark Hill and Giles Le Sueur
                c/o Maples Finance Limited
                P.O. Box 1093GT
                Grand Cayman, Cayman Islands


TSF NO. 7: Will Hold Final Shareholders Meeting on Oct. 15
----------------------------------------------------------
TSF No. 7 will hold its final shareholders meeting on Oct. 15,
2008, at the offices of Maples Finance Limited, Boundary Hall,
Cricket Square, George Town, Grand Cayman, Cayman Islands.

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

TSF No. 7's shareholders decided on June 26, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidators can be reached at:

                Mark Hill and Giles Le Sueur
                c/o Maples Finance Limited
                P.O. Box 1093GT
                Grand Cayman, Cayman Islands



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

EXIDE TECHNOLOGIES: Wants Oct. 31 Extension to Review Claims
------------------------------------------------------------
Exide Technologies Inc. asks the U.S. Bankruptcy Court for the
District of Delaware to extend through October 31, 2008, the time
within which it may object to certain claims.

More than 6,100 proofs of claim totaling roughly US$4,400,000,000,
were filed in the Debtor's bankruptcy case.  Moreover, the Debtor
has filed 50 omnibus claims objections, two individual objections
to claims, and has resolved numerous other claims, James E.
O'Neill, Esq., at Pachulski Stang Ziehl & Jones LLP, in
Wilmington, Delaware, notes.

Through the Debtor's efforts -- along with the Postconfirmation
Committee of Unsecured Creditors -- 6,037 claims have been
reviewed, reconciled and resolved, reducing the total amount of
outstanding Claims by over US$3,400,000,000, Mr. O'Neill
discloses.  

The Debtor has also completed 17 quarterly distributions to
creditors under its Joint Plan of Reorganization, consisting of
distributions on 2,590 claims for aggregate amount of
US$1,660,000,000.

However, Mr. O'Neill states, despite this substantial progress,
the Debtor requires additional time to review and resolve 85
remaining Claims.

The Claims Objection Deadline extension will provide the Debtor
and the Committee with necessary time to continue to evaluate the
Claims filed against the estate, prepare and file additional
objections to Claims and, where possible, consensually resolve
Claims, Mr. O'Neill states.

The Court will convene a hearing on September 16, 2008, at 3:00
p.m., to consider the Debtor's request.  Pursuant to Del.Bankr.LR
9006-2, the Debtor's Claim Objection Deadline is automatically
extended until the conclusion of that hearing.

Headquartered in Princeton, New Jersey, Exide Technologies
(NASDAQ: XIDE) -- http://www.exide.com/-- manufactures and
distributes lead acid batteries and other related electrical
energy storage products.  The company filed for chapter 11
protection on Apr. 14, 2002 (Bankr. Del. Case No. 02-11125).
Matthew N. Kleiman, Esq., and Kirk A. Kennedy, Esq., at Kirkland
& Ellis, represented the Debtors in their successful
restructuring.  The Court confirmed Exide's Amended Joint
Chapter 11 Plan on April 20, 2004.  The plan took effect on
May 5, 2004.

The company has operations in 89 countries, including,
Argentina, Belize, Bolivia, Brazil, Chile, Colombia, Costa
Rica, Ecuador, El Salvador, Guatemala, Panama, Paraguay, Peru,
Uruguay, Venezuela, Trinidad and Puerto Rico.

At Dec. 31, 2007, the company's consolidated balance sheet
showed US$2.426 billion in total assets, US$1.989 billion in total
liabilities, US$17.2 million in minority interest, and
US$420.1 million in total stockholders' equity. (Exide Bankruptcy
News, Issue No. 109; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
July 9, 2008, Moody's Investors Service upgraded the Corporate
Family and Probability of Default Ratings of Exide Technologies,
Inc. to B3 from Caa1.

The TCR-LA reported on June 18, 2008, that Standard & Poor's
Ratings Services raised its corporate credit rating on Exide
Technologies to 'B' from 'B-' as a result of the company's
improved financial results, which have led to continued reduction
in debt leverage.



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

BANCOLOMBIA SA: Reaches Bargaining Deal With Uneb and Sintrabancol
------------------------------------------------------------------
Bancolombia S.A. and the unions Uneb and Sintrabancol, during
their Oct. 2 meeting, agreed to a new collective bargaining
agreement.  The Agreement will have a term of three (3) years,
beginning on November 1, 2008.  pproximately 71% of Bancolombia’s
employees will be covered by the Agreement.

The Agreement improves the competitiveness of the salaries of
Bancolombia’s employees, as well as their income and purchasing
power.  The Agreement also reflects Bancolombia’s commitment with
the wellbeing of its employees, as a principal component for
achieving its strategic goals.

The most important economic aspects of the Agreement are:

   1. A pay increase of 9.87% for the first year.   For the second
      year, the increase will be equal to the variation in the
      Colombian consumer price index, as certified by the
      Colombian statistical bureau (DANE) for the period between
      November 2008 and October 2009, plus 150 basis points.  For
      the third year, the increase will be equal to the IPC
      variation, for the period between November 2009 and October
      2010, plus 100 basis points.

   2. Improved benefits for Bancolombia’s covered employees,
      including increases in the amounts of individual housing
      loans, tuition aid fund, health insurance coverage,
      transportation and food assistance.

With the execution of the Agreement, Bancolombia, Uneb and
Sintrabancol continue to work on the consolidation of long-term
labor relationships based on mutual trust and respect.

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.


GLOBAL CROSSING: Expands Collaboration Solutions in Colombia
------------------------------------------------------------
Global Crossing Ltd. is enhancing its Global Crossing
Collaboration Solutions in Colombia with features specifically
designed to fulfill the demands of the local market.

The features for collaboration customers in Colombia include
billing in local currency, multi-language manuals, tutorials and
audio prompts in Spanish and Portuguese, as well as the ability to
identify from which country the caller is dialing.  Global
Crossing's enhanced collaboration solutions in Colombia underscore
the company's continuing focus on expanding its global offerings
to local markets.

By utilizing Global Crossing Collaboration Solutions, customers in
Colombia will now benefit from local billing, a dedicated local
support team and Global Crossing access numbers.  Additionally,
customers also benefit from increased productivity, as
geographically distant employees, customers and providers are
linked in a virtual office, eliminating travel
time and costs.  This tool enables businesses to experience work
in three dimensions, through the use of audio, Web, and video,
with scalable solutions that create virtual face-to-face meetings.

"The main purpose of this service is to enable the sharing of
data, presentations, and applications while receiving
participants' feedback in real time at their own workplaces," said
Jaime Pelaez, president of Global Crossing in Colombia.  "Now,
with localized features in addition to the simplicity and instant
accessibility collaboration provides, Global Crossing
Collaboration Services are the perfect solution for organizations
that need flexible, on-demand communications."

This integrated solution, which is already being used by many
organizations in the region and around the world, enables
Colombian businesses to have access to a wide range of services
that can be managed and activated without the need for
reservations in advance.  Companies can link multiple sites simply
and simultaneously, smoothly organizing the flow of information.  
Additionally, meetings can be recorded, and the
training and control of projects can be managed from a distance.

Global Crossing Collaboration Solutions span all the interactive
communications needs of organizations -- ranging from high-level
and strategic meetings to frequent ad-hoc communications.  Trained
operators can manage and monitor calls with many participants and
offer other multiple language support for customers 24x7.

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

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

                          *     *     *

As of June 30, 2008, the company reported US$2.65 billion in total
assets, US$2.80 billion in total liabilities, and
US$150 million in stockholders' deficit.

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



=============
E C U A D O R
=============

AMERICAN INTERNATIONAL: Has 33.2% Stake in Transatlantic Holdings
-----------------------------------------------------------------
American International Group, Inc., AIG Property Casualty Group,
INC., and American Home Assurance Company disclosed in a
Securities and Exchange Commission filing that they may be deemed
to beneficially own 22,018,973 shares of Transatlantic Holdings,
Inc.'s common stock, representing 33.2% of the shares issued and
outstanding.

Based in New York City, American International Group Inc. --
http://www.aig.com/-- (NYSE: AIG) is an international insurance   
and financial services organization, with operations in more than
130 countries and jurisdictions.  The company is engaged through
subsidiaries in General Insurance, Life Insurance & Retirement
Services, Financial Services and Asset Management.

The company's British headquarters are located on Fenchurch Street
in London, continental Europe operations are based in La Defense,
Paris, and its Asian HQ is in Hong Kong.  AIG owns Ocean Finance,
a United Kingdom based company providing home owner loans,
mortgages and remortgages.  AIG operates in the UK with the brands
AIG UK, AIG Life and AIG Direct.  It has about 3,000 employees,
and sponsors the Manchester United football club.  In response to
redemption demands, AIG Life (UK) suspended redemptions of its AIG
Premier Bond money market fund on Sept. 19, 2008, in order to
provide an orderly withdrawal of assets.

The company has locations in Argentina, Aruba, Bahamas, Bermuda,
Brazil, Cayman Islands, Chile, Colombia, Dominica, Ecuador, El
Salvador, Grenada, Guatemala, Haiti, Honduras, Jamaica, Mexico,
Panama, Peru, Puerto Rico, Trinidad, Uruguay, Venezuela and Virgin
Islands.

              US$85,000,000,000 Federal Reserve Loan

The Federal Reserve Bank of New York has extended to AIG a
revolving credit facility up to US$85 billion. AIG's borrowings
under the revolving credit facility will bear interest, for each
day, at a rate per annum equal to three-month Libor plus 8.50%.  
The revolving credit facility will have a 24-month term and will
be secured by a pledge of assets of AIG and various subsidiaries.  
The revolving credit facility will contain affirmative and
negative covenants, including a covenant to pay down the facility
with the proceeds of asset sales.

The summary of terms also provides for a 79.9% equity interest in
AIG.  The corporate approvals and formalities necessary to create
this equity interest will depend upon its form.

In a statement, the company said "AIG is a solid company with over
US$1 trillion in assets and substantial equity, but it has been
recently experiencing serious liquidity issues."

Standard & Poor's Ratings Services has revised the CreditWatch
status of most of its ratings on the AIG group of companies --
including its 'A-' long-term counterparty credit ratings on
American International Group Inc. and International Lease Finance
Corp. and the 'A+' counterparty credit and financial strength
ratings on most of AIG's insurance operating subsidiaries -- to
CreditWatch developing from CreditWatch negative.  

Fitch Ratings revised its Rating Watch on American International
Group, Inc. to Evolving from Negative.  Fitch viewed this
transaction as a favorable development that alleviates significant
near-term liquidity concerns.
   
The Troubled Company Reporter reported on Sept. 19, 2008, that
that Edward Liddy replaced Robert Willumstad as AIG's CEO.

                       *     *     *          

In a U.S. Securities and Exchange Commission filing dated Aug. 6,
2008, AIG reported a net loss for the second quarter of 2008 of
US$5.36 billion compared to 2007 second quarter net income of
US$4.28 billion.  Second quarter 2008 adjusted net loss was
US$1.32 billion, compared to adjusted net income of US$4.63
billion for the second quarter of 2007.  The continuation of the
weak U.S. housing market and disruption in the credit markets, as
well as global equity market volatility, had a substantial adverse
effect on AIG's results in the second quarter.

Net loss for the first six months of 2008 was US$13.16 billion,
compared to net income of US$8.41 billion in the first six months
of 2007.  Adjusted net loss for the first six months of 2008 was
US$4.88 billion, compared to adjusted net income of US$9.02
billion in the first six months of 2007.


AMERICAN INTERNATIONAL: Moody's Cuts Unsecured Debt Rating to 'A3'
------------------------------------------------------------------
Moody's Investors Service has downgraded the senior unsecured debt
rating of American International Group, Inc. to A3 from A2.  This
rating action reflects Moody's view that if AIG successfully
completes the divestiture and restructuring plan, its business
diversification will be significantly reduced.  AIG's long-term
ratings and its Prime-1 short-term rating remain on review for
possible downgrade, reflecting the substantial execution risk in
the restructuring plan, particularly given the current turbulent
credit market.

In the past year, AIG has reported substantial losses and write-
downs associated with mortgage-backed securities, largely through
its credit default swap and securities lending portfolios.  
Significant cash collateral calls and maturities related to these
activities in recent weeks have caused the company to borrow
heavily under the US$85 billion revolving credit facility recently
provided by the Federal Reserve Bank of New York.  Total
borrowings under the two-year secured facility amounted to
US$61 billion as of September 30, 2008, and more borrowings are
expected in the months ahead.

Moody's believes that the asset sales plan, if successful, will
enable the company to repay borrowings under the Fed facility and
emerge as a more focused, albeit less diversified, insurance firm.  
The continuing review for possible downgrade incorporates the risk
that the situation may deteriorate, either because of shortfalls
in executing the restructuring plan or because of declines in the
business or financial profiles of the operations to be retained.  
Moody's believes that the risk of such deterioration is materially
mitigated by the involvement of the Fed and the enhanced market
liquidity that will likely result from the US Government's pending
US$700 billion financial rescue plan.

Following the restructuring, AIG's core businesses are expected to
include the US-based Commercial Insurance Group, Foreign General
Insurance and a majority stake in American International
Assurance.  The parent company's A3 senior debt rating is now
three notches below the Aa3 insurance financial strength ratings
of the CIG companies, the largest core operating unit.  A three-
notch differential is common among US insurance groups, but this
represents an expansion of the notching for AIG, based on Moody's
view that AIG will be materially less diversified following the
restructuring.  AIG's Prime-1 short-term rating reflects the
significant protection to short-term creditors afforded by the Fed
credit facility in the near term.

Moody's also announced rating actions on several AIG subsidiaries
whose ratings depend on explicit or implicit parental support.  
Ratings on most AIG units remain on review for possible downgrade.  
Moody's expects to revisit the stand-alone ratings, and perhaps
the public ratings, for the major life insurance operations over
the next few weeks.  Certain operating units have been placed on
review with direction uncertain, signaling potential sales to
buyers whose credit profiles could be stronger, weaker or similar
to that of AIG.

The success of the restructuring plan, in Moody's view, hinges
largely on AIG's ability to contain and reduce risk in its
mortgage exposed investment and derivative portfolios.  A majority
of the borrowings under the Fed credit facility have been used to
address liquidity and capital needs stemming from these exposures.  
Moody's noted that further deterioration in market values within
these portfolios could further strain the company's resources
through such mechanisms as increased collateral calls or
reductions/terminations of funding arrangements.  Such strains
could weaken the company's credit profile, which may lead to
additional rating downgrades.

In such an event, contingent additional capital and liquidity
needs could be triggered.  The rating agency expects that AIG --
with the support and interest of the Fed -- will pursue various
means to limit the risks associated with market value volatility
in its investment and derivative portfolios.

AIG's core insurance operations are fundamentally solid, said
Moody's.  CIG is the largest US commercial insurer, with a sound
capital base, well diversified product offerings and expertise in
writing large and complex risks.  Foreign General is the top
provider of accident & health insurance globally, operating in
some 80 countries and adapting to local laws and customs as
needed.  The AIA companies make up one of the largest and most
diversified life insurance groups spanning Asia and Australia.

The insurance and other operations identified for sale include
market leaders in many business lines and geographic areas.  Major
units expected to be sold include Domestic Life Insurance and
Retirement Services, one of the largest and most diversified life
insurance groups in the US; American Life Insurance Company, one
of the largest international life insurers, with operations in
more than 50 countries; International Lease Finance Corporation, a
global leader in leasing and remarketing advanced technology
commercial aircraft; and a minority stake in AIA.  AIG's sales
plans encompass well over a dozen substantial businesses.

Moody's noted that all of AIG's operations are subject to
significant reputational risk in connection with the recent
liquidity strains that gave rise to the Fed credit facility.  
Challenges facing AIG managers include retaining clients,
distributors and employees; demonstrating that the operating
companies have ample resources to meet their obligations;
generating new business; and facilitating divestitures.  It will
take time to determine the extent to which recent events may have
weakened the companies' standing in their respective markets.

Moody's continuing review of the ratings on AIG and its
subsidiaries will focus on (i) the firm's evolving liquidity
profile, including the level of borrowing under the Fed credit
facility; (ii) steps taken to contain and reduce risk in the
investment and derivative portfolios, including any associated
losses or costs as well as any potential benefit from the US
Government's pending US$700 billion financial rescue plan; (iii)
the timing and amounts of cash proceeds generated from asset
sales; (iv) the performance of major operating units, whether they
are core operations or targeted for sale; and (v) the resulting
financial flexibility profile (e.g., financial leverage and fixed
charge coverage) of AIG following the asset sales.

For those operations being sold, Moody's will consider their
intrinsic financial strength as well as the rating profiles of
potential acquirers.

The last rating action on AIG took place on September 18, 2008,
when Moody's reiterated the existing ratings and the review for
possible downgrade, following the activation of the Fed credit
facility.

Moody's has downgraded these ratings and kept them on review for
possible further downgrade:

* American International Group, Inc. -- long-term issuer rating
   to A3 from A2, senior unsecured debt to A3 from A2,
   subordinated debt to Baa1 from A3;

* AGFC Capital Trust I -- backed preferred stock to Baa3 from
   Baa2;

* AIG General Insurance (Taiwan) Co., Ltd. -- insurance
   financial strength to A3 from A1;

* AIG Life Holdings (US), Inc. -- backed senior unsecured debt
   to A3 from A2;

* AIG Retirement Services, Inc. -- backed senior unsecured debt
   to A3 from A2, backed preferred stock to Baa2 from Baa1;

* American General Capital II -- backed trust preferred stock to
   Baa1 from A3;

* American General Finance Corporation -- long-term issuer
   rating to Baa1 from A3, senior unsecured debt to Baa1 from A3;

* American General Institutional Capital A & B -- backed trust
   preferred stock to Baa1 from A3;

* Capital Markets subsidiaries -- AIG Financial Products Corp.,
   AIG Matched Funding Corp., AIG-FP Capital Funding Corp., AIG-
   FP Matched Funding Corp., AIG-FP Matched Funding (Ireland)
   P.L.C., Banque AIG -- backed senior unsecured debt to A3 from
   A2;

* Mortgage Guaranty subsidiaries (second-lien and student loans)
   -- United Guaranty Commercial Insurance Company of North
   Carolina, United Guaranty Residential Insurance Company of
   North Carolina -- backed insurance financial strength to Baa1
   from A3.

Moody's has placed this rating on review for possible downgrade:

* American General Finance, Inc. -- short-term debt at Prime-2.

These ratings remain on review for possible downgrade:

* American International Group, Inc. -- short-term issuer rating
   at Prime-1;

* AIG Edison Life Insurance Company -- insurance financial
   strength at Aa3;

* AIG Financial Products Corp. -- backed short-term debt at
   Prime-1;

* AIG Funding, Inc. -- backed short-term debt at Prime-1;
* AIG Liquidity Corp. -- backed short-term debt at Prime-1;
* AIG Matched Funding Corp. -- backed short-term debt at
   Prime-1;

* AIG SunAmerica funding agreement-backed note programs -- AIG
   SunAmerica Global Financing Trusts, ASIF I & II, ASIF III
   (Jersey) Limited, ASIF Global Financing Trusts -- senior
   secured debt at Aa3;

* AIG SunAmerica subsidiaries -- AIG SunAmerica Life Assurance
   Company, First SunAmerica Life Insurance Company, SunAmerica
   Life Insurance Company -- insurance financial strength at Aa3;
   short-term insurance financial strength at Prime-1;

* AIG UK Limited -- insurance financial strength at A1;

* American International Assurance Company (Bermuda) Limited --
   insurance financial strength at Aa3;

* American Life Insurance Company -- insurance financial
   strength at Aa3;

* Commercial Insurance Group subsidiaries -- AIG Casualty
   Company; AIU Insurance Company; American Home Assurance
   Company; American International Specialty Lines Insurance
   Company; Commerce and Industry Insurance Company; National
   Union Fire Insurance Company of Pittsburgh, Pennsylvania; New
   Hampshire Insurance Company; The Insurance Company of the
   State of Pennsylvania -- insurance financial strength at Aa3;

* Domestic Life Insurance & Retirement Services subsidiaries --
   AIG Annuity Insurance Company, AIG Life Insurance Company,
   American General Life and Accident Insurance Company, American
   General Life Insurance Company, American International Life
   Assurance Company of New York, The United States Life
   Insurance Company in the City of New York, The Variable
   Annuity Life Insurance Company -- insurance financial strength
   at Aa3;

* Mortgage Guaranty subsidiaries (first-lien loans) -- United
   Guaranty Mortgage Indemnity Company, United Guaranty
   Residential Insurance Company -- backed insurance financial
   strength at Aa3.

Moody's has downgraded the ratings and placed them on review with
direction uncertain:

* ILFC E-Capital Trusts I & II -- backed preferred stock to Baa3
   from Baa2;

* International Lease Finance Corporation -- senior unsecured
   debt to Baa1 from A3, preferred stock to Baa3 from Baa2,
   senior unsecured debt shelf to (P)Baa1 from (P)A3.

Moody's has placed these ratings on review with direction
uncertain:

* International Lease Finance Corporation -- short-term debt at
   Prime-2;

* Transatlantic Holdings, Inc. -- senior unsecured debt at A3,
   senior unsecured debt shelf at (P)A3, subordinated debt shelf
   at (P)Baa1;

* Transatlantic Reinsurance Company -- insurance financial
   strength at Aa3.

Moody's maintains a negative outlook on these ratings:

* American General Finance Corporation -- short-term debt at
   Prime 2;

* CommoLoco, Inc. -- backed short-term debt at Prime-2.

These ratings have been (downgraded and) withdrawn for business
reasons:

* AIG Capital Corporation -- long-term issuer rating to Baa2
   from Baa1; short-term issuer rating at Prime 2.

AIG, based in New York City, is a leading international insurance
and financial services organization, with operations in more than
130 countries and jurisdictions.  The company is engaged through
subsidiaries in General Insurance, Life Insurance & Retirement
Services, Financial Services and Asset Management.  AIG reported
total revenues of US$19.9 billion and a net loss of US$5.4 billion
for the second quarter of 2008.  Shareholders' equity was
US$78.1 billion as of June 30, 2008.

The company has locations in Argentina, Aruba, Bahamas, Bermuda,
Brazil, Cayman Islands, Chile, Colombia, Dominica, Ecuador, El
Salvador, Grenada, Guatemala, Haiti, Honduras, Jamaica, Mexico,
Panama, Peru, Puerto Rico, Trinidad, Uruguay, Venezuela and Virgin
Islands.



=================
G U A T E M A L A
=================

EXIDE TECH: Posts Estimated Net Sales of US$910MM in Second Qtr.
----------------------------------------------------------------
Exide Technologies reported estimated fiscal 2009 second quarter
net sales to increase 6% to US$910 million versus net sales of
US$862 million in the prior year period.

While it is not the Company's normal practice to release certain
financial information prior to formally reporting financial
results of a period, Exide believes its fundamentals and strategic
focus have not changed despite the recent turbulence in the
financial markets.

Adjusted EBITDA for the fiscal 2009 second quarter is expected to
be in the range of US$61.0 million to US$63.0 million versus $50.0
million for the same period in the prior year.  Adjusted EBITDA is
defined as earnings before interest, taxes, depreciation,
amortization and restructuring charges.  The company's Adjusted
EBITDA definition also adjusts reported earnings for the effect of
non-cash currency re-measurement gains or losses, the non-cash
gain or loss from revaluation of the company's warrants liability,
impairment charges and non-cash gains or losses on asset sales as
well as a specific exclusion for the loss on early extinguishment
of debt recorded in the first quarter of fiscal 2008.  Because the
company is still in the process of completing its interim
financial statements for the fiscal quarter ended September 30,
2008, the Company is unable to provide a quantitative
reconciliation of Adjusted EBITDA to net income, but notes that
these adjustments, in the aggregate, have been significant in
prior periods and could be significant in the current quarter.  
The company is uncertain whether these adjustments will result in
net income or (loss) for the fiscal quarter.

In addition, the company expects Free Cash Flow for the fiscal
2009 second quarter to be approximately US$37.0 million.  This
compares to a Free Cash Flow burn of (US$40.8) million for the
fiscal 2008 second quarter.  The company defines Free Cash Flow as
cash from operating activities and cash from investing activities,
both as measured in accordance with Generally
Accepted Accounting Principles.  Because the company is still in
the process of completing its interim financial statements for the
fiscal quarter ended September 30, 2008, the company is unable to
provide a quantitative reconciliation of Free Cash Flow to the
comparable GAAP financial measurement.

"The metrics released today indicate continued improvement from
the prior year period which is a result of our continued focus on
improving operational efficiencies and reducing costs," stated
Gordon Ulsh, President and CEO.

Lead costs have averaged US$1,912 per metric ton and US$2,110 per
metric ton for the three and six month periods ended September 30,
2008.  This compares to averages of US$3,143 per metric ton and
US$2,660 per metric ton for the same periods of fiscal 2008.

The above financial information for the second quarter ended
September 30, 2008 is preliminary in nature and subject to
adjustment up or down based upon the actual closing of the
company's global books for the month of September and the
completion of our interim financial statements for the three
months ended September 30, 2008.

                      Non GAAP Measurements

The company uses Adjusted EBITDA as a key measure of its
operational financial performance.  This measure underlies the
company's operational performance and excludes the nonrecurring
impact of the company's current restructuring actions.  The
company also believes Free Cash Flow provides useful information
about the cash generated by our core operations after capital
expenditures and the sale of non-core assets.

Additionally, the company announced that it will host a conference
call with the investment community on November 7, 2008 to discuss
its financial results for the second quarter ended September 30,
2008.

The call will be hosted by Exide President and Chief Executive
Officer, Gordon A. Ulsh, and other members of senior management.

Headquartered in Princeton, New Jersey, Exide Technologies
(NASDAQ: XIDE) -- http://www.exide.com/-- manufactures and
distributes lead acid batteries and other related electrical
energy storage products.  The company filed for chapter 11
protection on Apr. 14, 2002 (Bankr. Del. Case No. 02-11125).
Matthew N. Kleiman, Esq., and Kirk A. Kennedy, Esq., at Kirkland
& Ellis, represented the Debtors in their successful
restructuring.  The Court confirmed Exide's Amended Joint
Chapter 11 Plan on April 20, 2004.  The plan took effect on
May 5, 2004.

The company has operations in 89 countries, including,
Argentina, Belize, Bolivia, Brazil, Chile, Colombia, Costa
Rica, Ecuador, El Salvador, Guatemala, Panama, Paraguay, Peru,
Uruguay, Venezuela, Trinidad and Puerto Rico.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
July 9, 2008, Moody's Investors Service upgraded the Corporate
Family and Probability of Default Ratings of Exide Technologies,
Inc. to B3 from Caa1.

The TCR-LA reported on June 18, 2008, that Standard & Poor's
Ratings Services raised its corporate credit rating on Exide
Technologies to 'B' from 'B-' as a result of the company's
improved financial results, which have led to continued reduction
in debt leverage.



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

DIGICEL LTD: Commercial Director Abandons Post After Three Months
-----------------------------------------------------------------
Digicel Ltd. Jamaica's new commercial director, Junaid Munshi, who
in May replaced Harry Smith, has quit his job at the mobile phone
company, Jamaica Gleaner's Susan Gordon reported Oct. 1, 2008.  
Mr. Munshi left two months ago, after being with the company for
less than three months.

He is the second top executive to hit the revolving door in recent
months, following behind David Hunter, who severed ties with
Digicel after four months as chief executive officer, Jamaica
Gleaner noted, citing Wednesday Business.  Patria-Kaye Aarons,
public relations officer, told Wednesday Business that Mr. Munshi,
a South African, left primarily because of the challenges his
family had adjusting to Jamaica.

The company has not replaced the commercial director, according to
Ms. Aarons, Jamaica Gleaner reported.  According to new CEO Mark
Linehan, he doesn't believe the post is required under Digicel's
existing business model.

Meanwhile, Mr. Linehan said that Wayne Miller, formerly marketing
manager (consumer), was promoted to head marketing, while Jason
Corrigan is now the director for sales and distribution, Jamaica
Gleaner noted.

According to Jamaica Gleaner, Mr. Corrigan has worked in sales for
10 years and was at Digicel Vanuatu as sales manager before
joining the team a week after Linehan joined in July.  He also
worked with O2 Retail in Ireland for over five years.

Mr. Miller started with the Digicel group in 2005 as marketing
com-munications manager, was seconded to Digicel Haiti in 2006 as
acting head of marketing, then returned to Jamaica in May 2007,
Jamaica Gleaner added.

                          About Digicel

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

                          *     *     *

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


NATIONAL COMMERCIAL: U.S. Turmoil Won't Mar Local Operations
------------------------------------------------------------
Although Jamaican banks hold big foreign assets and heavy debts,
National Commercial Bank Jamaica Limited said its local business
won’t be affected by the American turmoil, Jamaica Gleaner writes.

Jamaica's seven commercial banks hold assets amounting to some
US$57 billion in cash and investments in foreign financial
institutions, accounting for just over a tenth of the half a
trillion dollars of total assets commanded by the sector, Jamaica
Gleaner reports.

Close to half of all foreign assets in the country is held by NCB,
based on the report.  But the bank's senior executives said late
last month that the sinking financial markets in the United States
were unlikely to have any real impact on banking business here.  
The bank’s officials also said that its foreign holdings were not
at risk.

According to the report, NCB as of June 30, had cash and bank
balances of US$13.7 billion in overseas banks and investment
securities of US$12.5 billion for a total of US$26 billion.  The
Michael Lee Chin-owned bank's foreign assets represents less than
13% of its total assets of US$203.6 billion according to central
bank industry data.  On Sept. 30, 2008, NCB said these were mostly
medium- to long-term holdings with limited exposure to the
downturn in the U.S. markets, Jamaica Gleaner notes.

NCB is Jamaica’s largest bank by assets, but it is the second most
profitable, according to the report.

NCB’s chief rival, Bank of Nova Scotia Jamaica whose total assets
top US$171 billion, also has exposure to the foreign markets --
with US$19.5 billion in cash and bank balances, and
US$195.5 million in securities.  The two together command 80% of
foreign held assets.  According to the report, BNS' foreign assets
as a ratio of total assets are valued less than NCB's at 11%.

On the liability side, BNS owes US$5.3 billion to overseas
players, Jamaica Gleaner writes.  NCB owes US$37 billion,
accounting for more than half of the US$73.2 billion that
Jamaica's commercial banks owed foreign firms at June 30.

Jamaica's loan market, Jamaica Gleaner says, is valued at
US$216 billion, or 41% of the sector's US$530.6 billion in assets.

              About National Commercial Bank Jamaica

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

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Oct. 2, 2008, that Standard & Poor's Ratings Services revised its
outlook on National Commercial Bank Jamaica Ltd. to negative from
stable; the counterparty credit ratings were affirmed at 'B/B'.

The TCR-LA reported on July 3, 2008, Fitch Ratings affirmed
National Commercial Bank Jamaica Limited's ratings on long-term
foreign and local currency Issuer Default Ratings at 'B+'; short-
term foreign and local currency IDRs at 'B'; Individual at 'D';
Support at 4; and Support Floor at 'B'.



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

ATRIUM CORP: Extends Exchange Offering of 11-1/2% Senior Notes
--------------------------------------------------------------
Atrium Corporation, ACIH, Inc., a subsidiary of Atrium Corp., and
Atrium Companies, Inc., a subsidiary of ACIH, are amending and
extending the private exchange offer and consent solicitation of
the 11-1/2% Senior Discount Notes due 2012 issued by ACIH in a
private placement for new 15.0% senior subordinated notes due
2012 to be issued by the Issuer and warrants to purchase shares
of Atrium Corp's Series C Preferred Stock convertible into 10.0%
of Atrium Corp's common stock on a fully diluted basis at an
exercise price of US$0.01 per share, subject to adjustment.  The
CUSIP numbers of the Old Notes are 00087E AA3 and U0045R AA 2.

The exchange offer was amended to clarify and provide details
with respect to the distribution by Atrium Corp, after all debt
and other liabilities have been paid, of equity proceeds in the
event of a sale, merger, liquidation, winding down or dissolution
of Atrium Corp or other liquidation event for cash or stock to
holders of its equity securities, including holders of Atrium
Corp's Series B and Series C Preferred Stock.  The Exchange
Offer was scheduled to expire at 5 p.m. New York City time on
Sept. 29, 2008.  The amended Exchange Offer will expire at 5 p.m.
New York City time on Oct. 10, 2008.  As of 5 p.m. on Sept. 29,
2008, of the US$174,000,000 Old Notes, US$169,435,000, or 97.4%
had been tendered.  One of the conditions of the Exchange Offer is
that holders of at least 97% of the total principal amount of
outstanding Old Notes tender their Old Notes in the Exchange
Offer.

The terms and conditions of the Exchange Offer are set forth in
the offering memorandum and consent solicitation statement dated
Aug. 22, 2008, as amended by the Supplement dated Sept.29, 2008.
The consummation of the Exchange Offer is conditioned upon the
satisfaction or waiver of the conditions set forth in the Offering
Memorandum.  Copies of the Offering Memorandum and related Letter
of Transmittal may be obtained from the information agent,
Mackenzie Partners,Inc., by calling (800)322-2885.

                    About Atrium Corporation

Headquartered in Dallas, Texas, Atrium Corporation is a
manufacturer and supplier of residential windows and doors in
North America.  The company has approximately 5,100 employees and
63 manufacturing facilities and distribution centers in 21 states,
Canada and Mexico.

                Forbearance and Lockup Agreements

As reported in the Troubled Company Reporter on July 24, 2008,  
Atrium Corporation and its key affiliates reached an agreement
with each of their major creditor groups to restructure debt.  
Atrium also has entered into forbearance and lockup agreements
with requisite majorities of the holders of each tranche of
Atrium's funded indebtedness.


COOPER TIRE: Eyes Production Adjustment on Raw Materials Shortage
-----------------------------------------------------------------
Cooper Tire & Rubber Company will adjust production schedules
because of raw materials shortage and slow demand, and will
attempt to avoid layoffs, Dow Jones Newswires reports, citing the
company.

According to the company, its suppliers have not been able to
provide sufficient materials because of problems arising from the
hurricanes that struck the Gulf Coast.  The shortages have led
Cooper to slow production at certain plants, Dow Jones relates.

Dow Jones says that the employee work will be reduced and closing
times with be shared between plants, but the company called the
situation "dynamic" and said plans could change if the
availability of materials improves or worsens.

The company, Dow Jones notes, expects a third-quarter charge of
US$9 million to US$11 million because of the moves.

Findlay, Ohio-based Cooper Tire & Rubber Company --
http://www.coopertires.com/-- is a manufacturer of replacement  
tires. Cooper focuses on the manufacture and sale of passenger and
light truck replacement tires.  It also manufactures radial medium
and bias light truck tires.  The company also manufactures and
sells motorcycle and racing tires.  

The company is organized into two segments: North American Tire
Operations and International Tire Operations.  Cooper operates
eight manufacturing facilities and 37 distribution centers in nine
countries.  The company’s Oliver Rubber Company subsidiary
(formerly part of the North American Tire Operations segment) was
sold on Oct. 5, 2007.  Effective Feb. 4, 2006, the Company
acquired a 51% interest in Cooper Chengshan (Shandong) Passenger
Tire Company Ltd. and Cooper Chengshan (Shandong) Tire Company,
Ltd.

Cooper Tire disclosed an agreement to invest in a tire
manufacturing facility in Guadalajara, Mexico.  The
facility will be jointly owned by Cooper Tire, a Mexican holding
corporation (IBSA), and Cooperativa TRADOC SRL, employee owners
of the Occidente facility.  Cooper Tire ownership in this
facility is 38% at an investment of US$31 million.  Revenues in
2007 were approximately US$2.9 billion.

                          *     *     *

As reported by the Troubled Company Reporter-Latin America on
Aug. 27, 2008, Standard & Poor's Ratings Services revised its
outlook on Cooper Tire & Rubber Co. to negative from stable.

"At the same time, we affirmed our 'B+' corporate credit rating
and other ratings.  The outlook revision reflects the effect of
slowing tire demand in North America and volatile raw material
prices on Cooper's financial risk profile.  Although the company
has been introducing premium products, reducing costs, and
expanding its presence in Asia, we expect the company's credit
measures to worsen during the remainder of 2008," S&P says.

"As of June 30, 2008, Findlay, Ohio-based Cooper had total debt
of $855.4 million, including our adjustments for operating
leases and postretirement benefit obligations," S&P adds.


CORPORACION DURANGO: Files for Ch. 15; Affiliates File Ch. 11
-------------------------------------------------------------
Hugh Collins and Tiffany Kary of Bloomberg News report that
Corporacion Durango S.A.B. de C.V. filed for Chapter 15 bankruptcy
with the U.S. Bankruptcy Court for the Southern District of New
York (Lead Case No. 08-13911) on Oct. 6, 2008, after missing a
US$26.5 million interest payment on 10.5 percent bonds due in
2017.  Two of its affiliates filed for Chapter 11 protection
separately with the same court on the same day.

The Lead Debtor is seeking to restructure US$1.5 billion of debt,
according to the report.

Gabriel Villegas Salazar, the Debtors' general counsel, said that
the Debtors have "...faced significant challenges stemming in
large part from an unprecedented, unexpected and sustained rise in
global energy prices," according to the report.  Mr. Salazar cited
costs of raw materials and freight that increased by
US$72.3 million in the first half of 2008 as proof of the rising
energy prices, according to the report.

Durango, Mexico-based Corporacion Durango S.A.B. de C.V. produces
brown paper and packaging products.  Its packaging division,
Empresas Titan, manufactures corrugated packaging in Mexico.  It
also produces newsprint through Grupo Pipsamex.

John K. Cunningham, Esq., at White & Case, LLP, represents the
Debtors in their restructuring efforts.  In its filing, the Lead
Debtor listed estimated assets of more than US$1 billion and
estimated debts of more than US$1 billion.


CORPORACION DURANGO: Chapter 15 Case Summary
--------------------------------------------
Chapter 15 Debtor: Corporacion Durango S.A.B. de C.V.
                  Torre Corporativa Durango
                  Potasio 150
                  Cuidad Industrial, Durango
                  Durango, Mexico 34208

Bankruptcy Case No.: 08-13911

Type of Business: The company produces brown paper and packaging
                 products and its packaging division, Empresas
                 Titan, manufactures corrugated packaging in
                 Mexico.  The Debtor is a producer of newsprint
                 through Grupo Pipsamex.
                 
                 The First Federal District Court in Durango,
                 Mexico, has approved the Debtor's plan of
                 reorganization and declared the termination
                 of its "Concurso Mercantil" proceeding.

                 As reported in the Troubled Company Reporter on
                 Sept. 3, 2008, Standard & Poor's Ratings
                 Services assigned on Aug. 29, 2008, its issue
                 and recovery ratings to the Debtor's
                 US$520 million senior unsecured notes maturing in
                 2017.  The notes are rated 'CCC-' (the same as
                 the long-term corporate credit rating) with a
                 recovery rating of '4', indicating that lenders
                 can expect an average (30% to 50%) recovery in
                 the event of a payment default.

                 Two of the Debtor's affiliates also filed for
                 bankruptcy under Chapter 11 of the Bankruptcy
                 Code in the United States Bankruptcy Court for
                 the Southern District of New York.

                 Debtor-affiliates filing separate Chapter 11
                 petitions:

                 Entity                           Case No.
                 ------                           --------
                 Fiber Management                 08-13918
                 of Texas, Inc.

                 Paper International, Inc.        08-13917

                 See: http://www.corpdgo.com/

Chapter 11 Petition Date: October 6, 2008

Court: Southern District of New York (Manhattan)

Judge: Allan L. Gropper

Debtor's Counsel: John K. Cunningham, Esq.
                 jcunningham@whitecase.com
                 White & Case, LLP
                 200 South Biscayne Boulevard, Suite 4900
                 Miami, FL 33131
                 Tel: (305) 995-5252
                 Fax: (305) 358-5744

Estimated Assets: More than US$1 billion

Estimated Debts: More than US$1 billion


CORPORACION DURANGO: S&P Lowers Corp. Credit Rating Further to D
----------------------------------------------------------------
Standard & Poor's Ratings Services has lowered its ratings on
Corporacion Durango S.A.B. de C.V., including the corporate credit
rating, to 'D' from 'CC', following the company's failure to make
its Oct. 6, 2008, payment on its US$520 million 10.5% senior
unsecured notes due 2017 as a result of its extremely low
liquidity.  The recovery rating on the notes is '4'.
    
Corporacion Durango also announced that it has filed for "Concurso
Mercantil," a Mexican bankruptcy proceeding equivalent to Chapter
11 in the U.S., and an auxiliary procedure in the U.S.  The
company will restructure its total outstanding debt of
approximately US$1.52 billion, including its public debt and the
debt of its subsidiaries.

Corporacion Durango, S.A. de C.V. (BMV: CODUSA), a vertically
integrated producer of paper and packaging products in Mexico,
previously announced that the First Federal District Court in
Durango, Mexico, has approved the company's plan of reorganization
and declared the termination of its "Concurso Mercantil"
proceeding.


DIOMED HODLINGS: Pays in Full Debt to Hercules Technology
---------------------------------------------------------
Diomed Holdings Inc. has settled in full its loan with Hercules
Technology Growth Capital, Inc., with the payment at the end of
September of US$1.1 million in accrued interest and loan fees, in
addition to the full repayment of US$6.0 million of principal
which was made in April 2008, Hercules Technology said in a press
release Wednesday.  

"We are pleased that we were able to get full repayment of the
loan principal plus accrued interest and fees," said Manuel A.
Henriquez, co-founder, chairman and chief executive officer of
Hercules.  

According to the press release, Diomed Holdings received
US$7.0 million as a result of the settlement agreement with
AngioDynamics Inc. which resolved the patent infringement lawsuit
between the companies originally filed in January 2004.  Of the
US$7.0 million settlement proceeds, US$6.0 million was used to
repay
the outstanding loan principal balance to Hercules.

As reported in the Troubled Company Reporter on Sept. 25, 2008,
Bill Rochelle of Bloomberg News reported that the United States
Bankruptcy Court for the District of Massachusetts will convene a
hearing on Nov. 4, 2008, to consider confirmation of the
liquidating Chapter 11 plan of Diomed Holdings, Inc., and its
debtor-affiliate Diomed, Inc.

Diomed agreed to sell its U.S. operations to AngioDynamics in
April.  AngioDynamics closed the sale of Diomed Holdings Inc.'s
U.S. businesses on June 17.

                     About Diomed Holdings

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

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

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


INNOPHOS HOLDINGS: CNA Files Appeal over Water Rate Decision
-------------------------------------------------------------
Innophos Holdings Inc. disclosed in a Securities and Exchange
Commission filing that its Mexican counsel informed the company on
September 23, 2008, that the Mexican National Waters Commission
timely filed an appeal to an intermediate Mexican appeals court
relating a decision of the Mexican Court of Fiscal &
Administrative Justice to overturn resolutions issued in 2004 by
CNA, to the company's Mexican affiliate, Innophos Fosfatados,
seeking to impose higher water rates on fresh water consumed at
the company's Coatzacoalcos, Veracruz, Mexico plant from 1998
through 2002.

CNA has 15 business days in which to file an appeal of that
decision.

Innophos acquired its Mexican operations in August 2004 from
affiliates of Rhodia, S.A.  Subsequently, Innophos obtained a
judgment in the New York State courts confirming its right to
full indemnity from Rhodia for CNA water resolution-related
liabilities arising prior to the acquisition.  The CNA fresh water
resolutions, if sustained, could amount to a potential liability
of up to US$33 million for the period 1998 through 2002, and would
be fully indemnified by Rhodia.

                    About Innophos Holdings

Headquartered in Cranbury, N.J., Innophos Holdings Inc. (Nasdaq:
IPHS) -- http://www.innophos.com/-- the holding company for a   
leading North American manufacturer of specialty phosphates,
serves a diverse range of customers across multiple applications,
geographies and channels.  Innophos offers a broad suite of
products used in a wide variety of food and beverage, consumer
products, pharmaceutical and industrial applications.  Innophos
has manufacturing operations in Nashville, Tenn.; Chicago Heights,
Ill.; Chicago (Waterway), Ill.; Geismar, Los Angeles; Port
Maitland, Ontario (Canada); and Coatzacoalcos, Veracruz and
Mission Hills, Guanajuato (Mexico).

                         *     *     *

As reported by the Troubled Company Reporter on April 17, 2007,
Standard & Poor's Ratings Services assigned its 'CCC+' rating to
US$66 million of senior unsecured notes due 2012 to be issued by
Innophos Holdings, parent company of Innophos Inc.  The rating
still holds to date.  S&P also affirmed the 'B' corporate credit
rating and other ratings on Innophos Inc.  

The TCR reported on April 18, 2008 that Moody's Investors Service
assigned a B1 corporate family rating to Innophos Holdings Inc.
and a B3 rating to the company's new US$66 million senior
unsecured notes due 2012.  The ratings still hold to date.

The new notes are being issued by Innophos Holdings to refinance
US$61 million of debt of its subsidiary, Innophos Investments
Holdings Inc.


* MEXICO: S&P Shifts 5 Banks' Counterparty Credit Rating Outlooks
-----------------------------------------------------------------
Standard & Poor's Ratings Services has revised its outlooks on
the long-term counterparty credit ratings on five Mexican banks
to stable from positive.  At the same time, S&P affirmed its long
and short-term counterparty credit ratings and various debt
ratings on the banks.
     
The banks S&P took the rating actions on are BBVA Bancomer S.A.,
Banco Nacional de Mexico S.A. (Banamex), Banco Santander S.A.
(Mexico), Scotiabank Inverlat S.A., and Banco Mercantil del Norte
S.A.
     
"The outlook revisions reflect the deteriorating growth prospects
in the Mexican economy given a more adverse international
environment, which could put pressure on the banks' asset
quality, profitability, and capitalization," said S&P's credit
analyst Santiago Carniado.  "These adverse developments reduce
the likelihood of a near-term upgrade for these institutions."



=======
P E R U
=======

* PERU: Suspends Discovery Petroleum Deals Over Kickback Scandal
----------------------------------------------------------------
Peruvian President Alan Garcia on October 6 suspended four
contracts with Discover Petroleum of Norway, which is allegedly
involved in kickbacks, The Associated Press and Reuters say.  The
government initiated an investigation on the matter.

Discover won four contracts to help Petroleos del Peru, S.A., a
state company that manages oil operations, explore for oil on
Peru's Pacific coast and in its southern Madre de Dios jungle at
an auction last month, AP notes.

Energy Minister Juan Valdivia Romero and Petroperu president Cesar
Gutierrez stepped down after recorded telephone conversations
allegedly captured a state oil executive and a member of President
Garcia's political party discussing payoffs they claimed to
receive for steering business to Discover Petroleum last month, AP
relates.

Meanwhile, Reuters writes that the scandal was exposed late Sunday
when an audio tape surfaced on television news show, Cuatro Poder,
depicting a conversation between Petroperu board member Alberto
Quimper and Romulo Leon, a prominent member of President Garcia's
APRA party.  In that conversation, the parties were described to
have apparently agreed to favor Discover in a round of energy
auctions.

AP says that Lima's Channel 4 TV station had aired what Messrs.
Quimper and Leon discussed.  Both gentlemen allegedly talked about
receiving US$5,000 to help Discover win a bid.  They also
discussed plans to request another US$100,000 to US$200,000 once
the contracts were granted.

AP states that Fernando Rospigliosi, an interior minister under
former President Alejandro Toledo, was said to have sent the tape
to Cuatro Poder.  Mr. Rospigliosi told the station he'd received
them from an anonymous individual.

Messrs. Romero and Gutierrez denied any involvement, according to
AP.  Mr. Gutierrez said he resigned to protect Petroperu and
cooperate with the investigation.

Discover, AP says, also denied any role in the scandal, with
managing director Jostein Kjerstad explaining that Discover is not
a party to the case.

Mr. Quimper denied ever helping Discover and told Lima, Peru-based
radio station Radioprogramas that the public auction was
transparent, AP reports.  AP notes that the auction boosted the
total number of contracts for oil and gas exploration and
extraction in Peru to a record 104, up from just 27 in 2003.

President Garcia, however, defended the process, which he says
will bring US$13.3 billion in energy investment to Peru, AP
relates.  He promoted private investment in tribal lands by
loosening rules over communal voting with a decree earlier this
year.  This move prompted ex-president Toledo to accuse him of
"selling out."  But Congress repealed the decree.

According to AP, President Garcia's opponents say foreign oil
companies, including Spain's Respol and Brazil's Petrobras,
shouldn't be allowed access to Peruvian lands.  The opposing party
alleged that many of the lands are controlled by indigenous groups
who negotiate directly with oil companies over their own property,
but have no say over the use of neighboring lands.

                         About PetroPeru

Petroleos del Peru, S.A. (PetroPeru) -- http://www.petroperu.com/
-- is a Peruvian state-owned petroleum company.  Its activities
include transport, refinery and commercialization of fuel and
other oil derivatives.  It was created on July 24, 1969, during
the presidency of Juan Velasco Alvarado, using properties
expropriated by Peru from the International Petroleum Company, a
subsidiary of Esso Corporation.  Those properties included the
world's oldest giant oilfield, La Brea y Pariñas, first discovered
in 1869 and eventually acquired by Esso.

                     About Discover Petroleum

Discover Petroleum -- http://www.discoverpetroleum.com/-- is a  
relatively young oil company, but has a management team and
employees with extensive experience in exploration and operator
activities on the Norwegian shelf.  The company was founded in
2005 by Offshore Resource Group, Jan M. Wennesland and Lars T.
Bjerke. Mr Wennesland is the Chairman of the Board and Mr Bjerke
is the CEO.  In April 2006, Discover Petroleum was pre-qualified
on the Norwegian shelf and allocated 10% in PL 396 (19th licensing
round).  As at Dec. 31, 2006, the company has 11 employees, 6 of
whom work in Tromso.  The company plans to increase the number of
employees in 2007 to around 20, 14 of whom will be based in
Tromso. The company’s address will be Roald Amundsens Plass 1, PO
Box, NO-9257 Tromso, Norway.  Discover Petroleum has exclusive
rights to exciting new exploration technology (PetroMarker), which
is currently being tested.



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

ROYAL CARIBBEAN: To Sell Stake in Island Cruises to First Choice
----------------------------------------------------------------
Royal Caribbean Cruises Ltd. has agreed to sell its 50% interest
in Island Cruises to First Choice Holidays Ltd., the other 50%
owner in the joint venture and a subsidiary of British-based tour
operator TUI Travel PLC.  As part of the transaction, Royal
Caribbean and TUI Travel agreed to an early termination of the
charter of Island Star, one of two ships in the Island Cruises
fleet.  Royal Caribbean is the owner of Island Star and had
chartered it to Island Cruises.

The deal is subject to regulatory approval in Ireland.  Royal
Caribbean will also recognize a small gain on the sale of its
interest in Island Cruises and the early termination of the Island
Star charter.

"We thank TUI for their efforts and cooperation throughout the
life of the joint venture.  Island Cruises has been a rewarding
investment for us, but over the past year our priorities have
shifted," said Royal Caribbean chairperson and chief executive
officer, Richard D. Fain.  "We believe by focusing on developing
and expanding the Royal Caribbean International and Celebrity
Cruises brands in the U.K. we will be better able to serve our
customers and create value for our shareholders.  This belief has
been strengthened by the success of the inaugural season of
Independence of the Seas, which has served the U.K. market from
Southampton, U.K., since it entered service in May 2008," Mr. Fain
added.

Upon its return in April 2009, Royal Caribbean plans to redeploy
the Island Star to Pullmantur Cruises, its Spanish brand.  
"Redeploying the Island Star to our expanding Pullmantur fleet
allows us to better serve the strategically important Spanish
market," Mr. Fain concluded.

Headquartered in Miami, Royal Caribbean Cruises Ltd. (NYSE: RCL)
-- http://www.royalcaribbean.com/-- is a global cruise vacation
company that operates Royal Caribbean International, Celebrity
Cruises and Pullmantur Cruises, Azamara Cruises and CDF Croisieres
de France.  The company has a combined total of 35 ships in
service and seven under construction.  It also offers unique land-
tour vacations in Alaska, Australia, China, Canada, Europe, Latin
America and New Zealand.  The company has operations in Puerto
Rico.

                            *     *     *

As reported in the Troubled Company Reporter-Latin America on
April 8, 2008, Standard & Poor's Ratings Services lowered the
corporate credit rating on Royal Caribbean Cruises Ltd. to 'BB+'
from 'BBB-'.  S&P said the rating outlook is stable.



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

PETROLEOS DE VENEZUELA: Okays Agreement for Pernambuco Refinery
---------------------------------------------------------------
Presidents of Petroleos de Venezuela S.A., Rafael Ramirez, and of
Petrobras, Jose Sergio Gabrielli de Azevedo, have completed the
text of a Shareholders' Agreement required for a partnership
between the two companies in the Abreu e Lima Refinery, in
Pernambuco, Petroleum World reports.  Both officials have approved
the final terms of the Articles of Incorporation for the new
company.

According to the report, it was agreed that in order for the
Shareholders' Agreement to be formally signed, all stages foreseen
for the deal to be closed must be completed, including a purchase
and sale agreement for the Venezuelan and Brazilian oil that will
supply the refinery.

Another condition for the Shareholders' Agreement to be signed is
the certification of the investments Petrobras has already made in
the project thus far.  This certification will be carried out by
an independent company which is currently being hired by Petrobras
and PDVSA, the report says.

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

                          *     *     *

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


* Latin American Poverty Springs from Childhood, World Bank Says
----------------------------------------------------------------
Costa Rica, Argentina, Chile, Mexico, Uruguay and Venezuela are
closer to ensuring their citizens have the chance to break the
cycle of poverty than the rest of the Caribbean and Latin American
nations, Inside Costa Rica reports, citing World Bank’s first
Human Opportunity Index.  The index, developed by World Bank
economists, is a new measurement focusing not on income but on the
factors children need to ensure they have an equal start in life,
Inside Costa Rica says.

The index was piloted in Latin America because of its vast gulf
between rich and poor.  Marcelo Giugale, director of the World
Bank’s poverty reduction and economic management for the Latin
America and Caribbean region, described the index as a
“breakthrough methodology.”

Inside Costa Rica notes that of 19 countries studied, using data
for the decade up to 2005, El Salvador, Guatemala, Honduras and
Nicaragua are struggling the most to give their poorest a way to
progress.  On the other hand, Brazil, Peru, Bolivia, Panama,
Paraguay, Jamaica, Ecuador, Dominican Republic, Colombia and
Jamaica shared the middle of the table.

According to the report, race and ethnicity were key obstacles
among the poorest in Mexico, Brazil, Peru, Colombia, Ecuador,
Guatemala and Panama.  Parental education levels were also a
deciding factor.  In all of these countries, 88% to 100% of
fathers were agricultural workers.

As cited by Inside Costa Rica, the report said that “Birthplace
matters in Latin America; it determines a child’s access to clean
water, sanitation and electricity.”

Mr. Giugale said the World Bank intends to update the index every
two years and use the same methodology in other countries and
region, Inside Costa Rica adds.



                            ***********

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, and Pamella Ritah K. Jala, Editors.

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

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

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

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


           * * * End of Transmission * * *