TCRLA_Public/081010.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

            Friday, October 10, 2008, Vol. 9, No. 202

                            Headlines

A R G E N T I N A

ANBU SA: Trustee Verifying Proofs of Claim Until December 12
DEFUEN SA: Trustee Verifying Proofs of Claim Until October 22
EMPRESA DISTRIBUIDORA: Completes US$6 Million Repurchased Notes
IBERCRUZ SRL: Proofs of Claim Verification Deadline Is February 4
YPF SA: Fitch Puts BB+ Rating on Proposed US$150MM Unsecured Debts


B E R M U D A

AMERICAN INTERNATIONAL: Gov't to Lend Firm Additional US$37.8 Bil.


B R A Z I L

BANCO EXCEL: Former Board Members Fined for BRL24 Million
CAIXA ECONOMICA: Mulls Buying Loan Books From 12 Local Banks
COMPANHIA ENERGETICA: May Post BRL836MM Loss in 2008, Analyst Says
COSAN SA: To Deliver Ethanol to Santos By Rail with America Latina
FORD MOTOR: Volvo Unit Will Lay Off 13% of Work Force

NORTEL NETWORKS: Unified Communications May Double LatAm Revenues
ODEBRECHT: Ecuador President Rejects Offer to End Contract Dispute
TAM SA: Records 82.1% International Market Share in September 2008
USINAS SIDERURGICAS: Cosipa Acquires 49% of Dufer Stake

* BRAZIL: Fitch Revises Outlooks of Five Major Banks to Positive


C A Y M A N  I S L A N D S

AHFP CONTEXT: To Hold Final Shareholders Meeting on Oct. 16
AHFP CONTRARIAN: Final Shareholders Meeting Is on Oct. 16
AHFP DEFIANCE: Holds Final Shareholders Meeting on Oct. 16
AHFP GROUP G: Sets Final Shareholders Meeting for Oct. 16
AHFP LAPP: Will Hold Final Shareholders Meeting on Oct. 16

AHFP MYOJO: Holding Final Shareholders Meeting on Oct. 16
AHFP PAULSON: To Hold Final Shareholders Meeting on Oct. 16
AHFP REDSTONE: Final Shareholders Meeting Is Set for Oct. 16
AHFP TT EUROPE: Holds Final Shareholders Meeting on Oct. 16
ALTERRA LIMA: Deadline for Proof of Claim Filing Is Oct. 16

ALTERRA LIMA: Holding Final Shareholders Meeting on Oct. 16
FPO LIMITED: Will Hold Final Shareholders Meeting on Oct. 16
FRIEDBERG CURRENCY: Sets Final Shareholders Meeting on Oct. 16
LODSWORTH GEMD (MASTER): Final Shareholders Meeting Is Oct. 16
LODSWORTH GLOBAL: Holds Final Shareholders Meeting on Oct. 16

NEW ONE: Will Hold Final Shareholders Meeting on Oct. 16
THREADNEEDLE AIS: To Hold Final Shareholders Meeting on Oct. 16
THREADNEEDLE AIS MASTER: Final Shareholders Meeting Is Oct. 16
UNIVEST DIVERSIFIED: Final Shareholders Meeting Set for Oct. 16


D O M I N I C A N   R E P U B L I C

* DOMINICAN REPUBLIC: Court Rejects Objections in US$680 Mil. Suit


H O N D U R A S

* HONDURAS: S&P Assigns Currency Sovereign Credit Ratings at B+/B


J A M A I C A

DIGICEL GROUP: Posts US$74.4MM Net Loss in Year Ended March 2008

* JAMAICA: JSE Loses US$83.6 Billion of Value Since September


M E X I C O

CHEROKEE INTERNATIONAL: To Merge with Lineage Power Holdings
CORPORACION DURANGO: Fitch Puts D Currency Issuer Default Ratings
YRC WORLDWIDE: Reaffirms Financial Forecast for Second Half 2008
YRC WORLDWIDE: Warns of Likely Impairment of Goodwill, Trade Names


P U E R T O  R I C O

W HOLDING: NYSE Extends Common Stock Trading Period to Six Months

T R I N I D A D  &  T O B A G O

HINDU CREDIT: President Says Government Bailout Not Necessary


                         - - - - -


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

ANBU SA: Trustee Verifying Proofs of Claim Until December 12
------------------------------------------------------------
Susana Taboada, the court-appointed trustee for Anbu SA's
reorganization proceeding will be verifying creditors' proofs of
claim until December 12, 2008.

Ms. Taboada will present the validated claims in court as  
individual reports.  The National Commercial Court of First
Instance No. 1 in Buenos Aires, with the assistance of Clerk
No. 1, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by Anbu SA and its creditors.

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

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

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

Creditors will vote to ratify the completed settlement plan  
during the assembly on September 15, 2009.

The debtor can be reached at:

                     Anbu SA
                     Montevideo 536
                     Buenos Aires, Argentina

The trustee can be reached at:

                     Susana Taboada
                     Ezeiza 2641
                     Buenos Aires, Argentina


DEFUEN SA: Trustee Verifying Proofs of Claim Until October 22
-------------------------------------------------------------
The court-appointed trustee for Defuen S.A.'s reorganization
proceeding will be verifying creditors' proofs of claim until
October 22, 2008.

The trustee will present the validated claims in court as  
individual reports on December 2, 2008.  The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the trustee's
opinion, and the objections and challenges that will be raised by
Defuen S.A. and its creditors.

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

A general report that contains an audit of Defuen S.A.'s
accounting and banking records will be submitted in court on
February 18, 2009.

Creditors will vote to ratify the completed settlement plan  
during the assembly on June 23, 2009.

The debtor can be reached at:

                     Defuen S.A.
                     Tucuman 1584
                     Buenos Aires, Argentina


EMPRESA DISTRIBUIDORA: Completes US$6 Million Repurchased Notes
---------------------------------------------------------------
Empresa Distribuidora y Comercializadora Norte S.A. disclosed in a
regulatory filing that it has completed the repurchase of
US$6,000,000 principal amount of Par Notes due October 2017.

The notes were repurchased at an average price of US$755.50 per
US$1,000.00 of principal amount.  The repurchased Notes were
delivered to the Trustee for cancellation.

Based in Buenos Aires, Argentina, Empresa Distribuidora y
Comercializadora Norte S.A. aka Edenor is the largest electricity
distribution company in Argentina in terms of number
of customers and volume of energy sold.  The company commenced
operations in 1992, as a result of the privatization of the
previously state-owned SEGBA.  At that time, it was granted a
95-year concession to distribute electricity on an exclusive
basis in its concession area, the greater Buenos Aires
metropolitan area and northern portion of the City of Buenos
Aires.  Edenor is 51% owned by Electricidad Argentina S.A., an
Argentine holding company which is 100% owned by Pampa Holding
S.A., another Argentine holding company with investments in
power generation, transmission, and distribution in Argentina.
EASA, which is controlled by Dolphin Energia S.A., is
Edenor's holding company.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Aug. 29, 2008, Standard & Poor's Ratings Services affirmed its 'B'
corporate credit rating on Distribuidora y Comercializadora Norte
S.A. (Edenor) and changed the outlook to stable from positive
mainly due to the deterioration of the business environment in
Argentina during 2008, which is reflected in the high political
and regulatory risk.


IBERCRUZ SRL: Proofs of Claim Verification Deadline Is February 4
-----------------------------------------------------------------
Raul Sena, the court-appointed trustee for Ibercruz SRL's
bankruptcy proceeding, will be verifying creditors' proofs of
claim until February 4, 2009.

Mr. Sena will present the validated claims in court as  
individual reports.  The National Commercial Court of First
Instance No. 16 in Buenos Aires, with the assistance of Clerk
No. 32, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by Ibercruz SRL and its creditors.

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

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

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

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

The debtor can be reached at:

                     Ibercruz SRL
                     Avda. Directorio 986
                     Buenos Aires, Argentina

The trustee can be reached at:

                     Raul Sena
                     Bartolome Mitre 734
                     Buenos Aires, Argentina


YPF SA: Fitch Puts BB+ Rating on Proposed US$150MM Unsecured Debts
------------------------------------------------------------------
Fitch Ratings has assigned a 'BB+' international scale rating to
YPF S.A.'s US$150 million proposed senior unsecured debt issuance.  
The notes have been also been assigned an 'AAA (arg)' national
scale rating. Proceeds from the 2018 notes will be used to
partially finance YPF's capital expenditure program.  Fitch has
also affirmed YPF's two medium-term notes program for US$1,000
million each at 'AAA (arg)'.  All ratings have a Stable Outlook.

The expected rating is equivalent to Fitch's rating on YPF's
outstanding senior unsecured debt.  YPF's foreign and local-
currency Issuer Default Ratings are 'BB+' and 'BBB-',
respectively.  YPF's foreign currency rating is above the country
ceiling rating of Argentina ('B+') due to the combination of the
company's significant exports, its low leverage, and the
controlling ownership by financially strong Repsol YPF.  However,
YPF's foreign currency rating remains linked to the Republic of
Argentina's credit profile as government interference and
political risk continue to be high.

The Stable Outlook reflects some flexibility for YPF to increase
its debt levels, in line with management's message that
significant investments are required to reduce the rate of the
decline in oil and gas production volumes.  Fitch estimates that
including the planned senior unsecured issue, a new loan from
Repsol YPF for another US$150 million and a high pay-out ratio, on
a pro-forma basis, the company's debt to capitalization ratio
would be below 20%.  Fitch views this as a moderate amount of
leverage for a company with YPF's cash flow and earning profile.

At June 2008, YPF's credit metrics remained strong with EBITDA to
interest of 34 times and Debt to EBITDA of 0.3.  Fitch expects
that interest coverage will continue to be solid in the near term
despite inflation pressure on operating margins and moderate
leverage increases.

The company's credit profile is tempered by its asset
concentration in Argentina, declining reserves volume, and
significant government interference in the energy sector.  Despite
the group's efforts to enhance reserves and production levels, the
upstream profile is unlikely to change much in the near term due
to the long lead-times of new projects.  YPF's ratings could be
pressured in the event of significant increase in debt levels
without associated increases in EBITDA over the near term, and a
loss of control or implicit support from Repsol YPF.

The Petersen Group has a 14.9% stake in YPF and the option to
acquire an additional 10.1% within the next four years.
Additionally, the shareholders have agreed that YPF will make an
IPO for approximately 20% of its equity, after which Repsol's
stake in YPF would be reduced to approximately 55%.  Although
Repsol will maintain a controlling stake, YPF debt is non-recourse
to Repsol YPF.

Headquartered in Buenos Aires, Argentina, YPF S.A. --
http://www.ypf.com.ar/ -- is an integrated oil and gas company
engaged in the exploration, development and production of oil and
gas, natural gas and electricity-generation activities (upstream),
the refining, marketing, transportation and distribution of oil
and a range of petroleum products, petroleum derivatives,
petrochemicals and liquid petroleum gas (downstream).  The company
is a subsidiary of Spanish company, Repsol YPF, S.A. Which holds
99.04% of its shares.  Its international operations are conducted
through its subsidiaries, YPF International S.A. And YPF Holdings
Inc.



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

AMERICAN INTERNATIONAL: Gov't to Lend Firm Additional US$37.8 Bil.
------------------------------------------------------------------
Liam Pleven, Sudeep Reddy, and Carrick Mollenkamp at The Wall
Street Journal report that the federal government said on
Wednesday it would lend US$37.8 billion to American International
Group Inc.

WSJ relates that with the additional loan, the government raised
by almost 50% the amount it could lend to AIG as concerns that the
firm could once again run short on cash appeared to increase.

AIG's domestic life insurance subsidiaries have entered into a
securities lending agreement with the Federal Reserve Bank of New
York.  Under the Securities Lending Agreement, the Federal Reserve
will borrow, on an overnight basis, investment grade fixed income
securities from the AIG subsidiaries in return for cash
collateral.  As expected, drawdowns under the existing Federal
Reserve credit facility have been used, in part, to settle
securities lending transactions.  The New York Fed is prepared to
borrow securities to extend AIG's currently outstanding lending
obligations where those obligations are not rolled over or
replaced by transactions with other private market participants.  
These borrowings by the Federal Reserve will allow AIG to
replenish liquidity to the securities lending program on an as-
needed basis, while providing possession and control of these
third-party securities to the Federal Reserve.  As of Oct. 6,
2008, about US$37.2 billion of securities were subject to loans
under AIG's securities lending program.

WSJ relates that AIG incurred losses stemming from complex credit
derivatives that helped lead to the firm's downfall and faces
extensive losses from a program that involves securities used to
back up life-insurance policies in its regulated subsidiaries.  
WSJ states that under the program, AIG lent out securities to
third parties and received collateral in return. AIG, according to
the report, had invested some of that collateral in other assets
that devaluated.  The reports states that AIG was sometimes unable
to lend the securities back for fresh collateral.

WSJ reports that it was revealed during a congressional hearing on
Tuesday, where two former AIG CEOs were questioned on the firm's
downfall, that the company spent over US$440,000 at a California
resort for a gathering of insurance agents for one of its life-
insurance subsidiaries, after the firm secured the US$85 billion
loan from the Federal Reserve.

AIG's Chairperson and CEO Edward M. Liddy sent a letter to the
U.S. Treasury Secretary Henry M. Paulson to clarify the
circumstances of the business event held by an AIG subsidiary
which was discussed during the hearing by the House Committee on
Oversight and Government Reform.  The event, said Mr. Liddy, was
mischaracterized as an "Executive Retreat."  It was held by one of
AIG's insurance subsidiaries for independent life insurance
agents, not for AIG employees.  These agents were top business
producers for the company, and of the more than 100 attendees,
only 10 were employees of the AIG subsidiary who were there to
represent their company.  No AIG executives from headquarters
attended.  The meeting was planned months before the Federal
Reserve's loan to AIG.

Mr. Liddy assured Secretary Paulson that AIG now faces very
different challenges, and "that we owe our employees and the
American public new standards and approaches."  Mr. Liddy assured
Secretary of the Treasury Paulson that AIG is "reevaluating the
costs of all aspects of our operations in light of the new
circumstances in which we are all operating."

Mr. Liddy concluded, that "AIG is focused on doing what is
necessary to address our capital structure, repay the Fed credit
facility and emerge as a healthy global insurer.  In the meantime,
our insurance businesses continue to operate normally and satisfy
the needs of our policy holders."

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 EXCEL: Former Board Members Fined for BRL24 Million
---------------------------------------------------------
Brazil's securities market regulator Comissao de Valores
Mobiliarios, or CVM, on October 9, fined the former chairman and
vice chairman Ezequiel Edmond Nasser and vice chairman Jacques
Nasser BRL24 million (US$11 million) each of the now-defunct Banco
Excel, Jeb Blount and Heloiza Canassa of Bloomberg News report.  
The report notes that Banco Excel was once the country's ninth-
largest bank.

The regulator, as cited by Bloomberg, said the Nassers were fined
for failure of care and due diligence, breach of trust and abuse
of power to the detriment of Excel shareholders.  The fine also
cites the Nassers for lack of care and due diligence, failure to
carry out their statutory duties and abuse of power as board
members of Compugraf Tecnologia.

The fine stems from an investigation into the alleged diversion of
funds from the bank to its subsidiaries and a later sale of those
subsidiaries to the controlling shareholders at a reduced price.  
The operations investigated by the CVM resulted in losses to the
bank and its minority shareholders, Bloomberg says, citing the
regulator.

The fines, Bloomberg states, were applied after a unanimous vote
by the CVM board.

Mr. Nasser's lawyer, Claudia de Castro Calli, and Jacques Nasser's
lawyer, Paulo Albert Weyland Vieira, didn't respond calls or
messages sent by Bloomberg News.

According to Bloomberg, Banco Excel was at the center of a
Brazilian banking crisis in the mid-1990s that led the government
and central bank to step in to prevent bank failures from
derailing the country's efforts to stabilize the economy after
almost a decade of recession and hyperinflation.

Bloomberg relates that the Brazilian bank collapsed in 1998.  
Spain's Banco Bilbao Vizcaya Argentaria SA acquired the bank later
that year for BRL1, agreeing to inject BRL1 billion into it and
replacing all its senior management.

In the end, the government's bailout plan cost about
BRL20 billion (US$9.2 billion), said Brazil's central bank, as
noted by Bloomberg.

CVM said in a statement that Darci Gomes do Nascimento, Excel's
former controller, was barred for three years from holding any
administrative position in a publicly traded company, Bloomberg
says.

CVM also disclosed that Jacques El Kobbi, director of Compugraf
Tecnologia, also was barred from holding any administrative
position in a publicly traded company for one year for fault of
care and due diligence, failure to protect the rights of the
company and abuse of power, Bloomberg adds.

Bloomberg says that Alexandre Bertoldi, Mr. El Kobbi's lawyer, and
Elso Brito de Melo Tavares, Mr. Nascimento's lawywer, couldn't be
reached for comment.

The accused have the right to appeal the CVM decision to the board
of Brazil's national financial system, Bloomberg concludes.


CAIXA ECONOMICA: Mulls Buying Loan Books From 12 Local Banks
------------------------------------------------------------
Caixa Economica Federal will buy payroll and retirement loan books
from 12 local banks, Business News Americas reports, citing a
company spokesperson.

According to News Service Agencia Estado, the number of banks in
deals with CEF could reach 20.

The agency says Banco do Brasil, is also looking to buy loan books
in this segment, in which it is the leader.  In its latest
financial records, BB BB had BRL14.0 billion (US$ 6.37 billion) in
payroll and retirement loans as of end-June, an increase of 37.9%
compared to the previous June.

Private sector bank Unibanco also has plans to take on this type
of loan from other banks, a separate report from the agency said.

Nossa Caixa, BNamericas notes, announced earlier this week it
would be taking on loan books in this segment from six banks.

Last week, Brazil's central bank BCB changed rules to allow
financial institutions to use up to 40% of their time deposits
reserve requirements to take on other banks' loan portfolios,
BNamericas says.

Only banks with equity of up to BRL2.5 billion can sell their
loans through the rule change, which was expected to free up as
much as BRL23.5 billion for additional credit, BNamericas adds.

Headquartered in Brasilia, Caixa Economica Federal --
http://www.caixa.gov.br-- is a Brazilian bank and one of the        
largest government-owned financial institutions in Latin
America.  Founded in Jan. 12, 1861, Caixa Economica is the
second biggest Brazilian bank, second only to Banco do Brasil,
and offers services in thousands of Brazilian towns, ranking
third in Brazil in number of branches.  The company has more
than 32 million accounts and controls more than US$170 billion.
It is responsible for executing policies in the areas of housing
and basic sanitation, the administration of social funds and
programs and federal lotteries.

                         *    *    *

In May 2008, Moody's Investors Service assigned a Ba2 foreign
currency deposit rating to Caixa Economica Federal.


COMPANHIA ENERGETICA: May Post BRL836MM Loss in 2008, Analyst Says
------------------------------------------------------------------
Companhia Energetica de Sao Paulo, the utility controlled by the
state of Sao Paulo, fell 17% to BRL10.30 in Sao Paulo trading
October 8, Paulo Winterstein of Bloomberg News reports.  That was
allegedly the lowest since shares began trading in 2006 after
Banco Santander SA said a weaker currency may reduce profit.

According to analyst Marcio Prado that Cesp is "by far the most
exposed" to dollar debt among Brazilian utilities and may report a
loss of BRL836 million in 2008 as the real weakens against the
dollar, Bloomberg relates.

"The sharp devaluation in the Brazilian real (43.4% devaluation
since June 30 and 18.4% during the third quarter of 2008) will
have a significant impact on utilities with unhedged U.S. dollar-
linked debt," Bloomberg quoted Mr. Prado as saying.

The analyst also cites a potential loss to Tractebel Energia SA,
the Brazilian power-generation unit of GDF Suez SA, due to a
weaker real.  Losses may reach BRL112 million in 2008. Tractebel
fell 6.9% to BRL17.60, Bloomberg notes.

Currency losses as well as increased financing risk may lead Cesp
and Tractebel to cut dividends.  Energias do Brasil SA, CPFL
Energia SA, Cia. Energetica do Ceara and Cia Energetica de Minas
Gerais SA also may cut dividends, Bloomberg says, citing Mr.
Prado.

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

                            *     *     *

As reported in the Troubled Company Reporter-Latin America on
Sept. 18, 2008, Moody's Investors Service upgraded Companhia
Energetica de Sao Paulo's corporate family rating and long-term
senior unsecured debt rating to Ba2 from Ba3.  Moody's said the
outlook is now stable.  This action concludes the review with
direction uncertain initiated on March 6, 2008.

In October 2007, Standard & Poor's Ratings Services raised its
ratings on electricity generator Companhia Energetica de Sao
Paulo, including its corporate credit rating to 'B' from 'B-'.
At the same time, S&P raised its Brazil national scale ratings
on CESP to 'brBBB-' from 'brBB'.  S&P said the outlook remains
positive on both scales.


COSAN SA: To Deliver Ethanol to Santos By Rail with America Latina
------------------------------------------------------------------
Cosan S.A. has reached an agreement with local logistics company,
America Latina Logistica (ALL), to transport ethanol by rail to
the port of Santos, Tony Danby at Dow Jones Newswires reports,
citing local newspaper Gazeta Mercantil.  This is the first time
ethanol will be delivered to the port by rail.

The project, according to the report, is in a test phase.  Further
investment is needed to reach full operation to enable the ethanol
to be offloaded at the terminal, Gazeta reported, Dow Jones notes.

Cosan told Dow Jones Newswires it was already using ALL's rail to
ship ethanol to Santos.

ALL expects annual shipping demand of between 1 million cubic
meters and 2 million cubic meters of ethanol, Gazeta quoted
Eduardo Pelleissone, ALL's commodities director, as saying.

Cosan said that all of its exported ethanol will be shipped using
ALL's railroad during the one-month pilot project, Dow Jones
relates.  Cost estimates of the agreement were not disclosed.

Cosan said that rail transportation will reduce the company's
logistics costs for ethanol shipments to the port of Santos by as
much as 15% when compared with truck fleets, Dow Jones adds.

                        About Cosan S.A.

Headquartered in Piracicaba, Brazil, Cosan S.A. Industria e
Comercio -- http://www.cosan.com.br/en/ir/-- produces sugar and
ethanol.  The company cultivates harvests and processes sugarcane,
the main raw material for sugar and ethanol manufacturing.  With
17 manufacturing units and two port terminals in the city of
Santos, Cosan says it is currently the largest individual group in
the world in terms of sugarcane byproducts manufacturing.  With
capacity to grind more than 40 million tonnes of sugarcane, the
group represents 12% of overall production in the mid-southern
region of the country.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Sept. 25, 2008, Moody's downgraded Cosan SA's ratings to Ba3 from
Ba2 on the global scale, and at the same time downgraded Cosan's
Brazilian national scale rating to A3.br from A1.br.  The
downgrade concludes the review for possible downgrade initiated on
April 25, 2008, after the announcement that Cosan had entered into
a share purchase agreement with ExxonMobil International Holdings
B.V. to acquire ExxonMobil's fuel distribution and lubricant
assets in Brazil (Esso).  The outlook for all ratings is negative.

TCR-LA related on April 28, 2008, that Standard & Poor's Ratings
Services placed its 'BB' long-term corporate credit rating on
Cosan S.A. Industria e Comercio, as well as its 'BB' rating on
the company's outstanding debt issues, which amount to
US$950 million, on CreditWatch with negative implications.  At
the same time, S&P placed its 'BB' long-term corporate credit
rating on Bermudas-based sugar-cane processor Cosan Ltd. on
CreditWatch with negative implications.


FORD MOTOR: Volvo Unit Will Lay Off 13% of Work Force
-----------------------------------------------------
Christop Rauwald and Ola Kinnander at The Wall Street Journal
report that Ford Motor Co. unit Volvo Cars said on Wednesday that
it will cut 13%, or 3,300 of its work force, due to declining
global demand.

According to WSJ, most of the layoffs -- about 2,700 -- will be
made in Sweden.  Volvo said it will also terminate contracts with
700 consultants world-wide, WSJ says.  

Volvo said that, including staff cuts disclosed in June, a total
of 6,000 people of the firm's 24,500 workers will lose their jobs,
WSJ relates.  About 1,200 of the workers to be laid off are
consultants, the report states.

WSJ quoted Volvo's CEO Stephen Odell as saying, "These actions are
necessary to create a new and sustainable Volvo Car Corporation--a
company with more focused operations and structure.  The unstable
economic environment has resulted in a very unpredictable
situation, and the downturn in the global car industry is more
drastic than expected."

                    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.


NORTEL NETWORKS: Unified Communications May Double LatAm Revenues
-----------------------------------------------------------------
Nortel Networks Corporation may raise its Latin American
enterprise revenues of up to 30% through Unified communications
(UC) technology, as compared with 12% at present, Nortel's CALA
region enterprise sector head Alejandro Bourg said, BNamericas'
Phil Anderson writes.

Enterprise solutions accounted for 24% of Nortel's global revenues
in 2007 and 23% of revenues in the first half of 2008, BNamericas
notes.

The UC offering is being driven by an alliance with Microsoft  
that began mid-2006 and is scheduled to run through July 2009,
according to the report.

Mr. Bourg, also a CALA region director of the Nortel-Microsoft
Alliance, expects the UC offering to have attracted 50 clients by
year-end, compared to 30 so far, BNamericas relates.

In March 2008, Nortel and Microsoft launched a suite of UC
solutions pairing Nortel's Communication Server 1000 IP PBX system
with the IM, email and video conferencing applications within
Microsoft's Office Communications Server 2007, BNamericas recalls.  
The launch of the standard suite followed deployment of tailor-
made packages for some 600 clients around the world during 2007.  

Communication Server 1000 is the first call server to be qualified
by Microsoft's Unified Communications Open Interoperability
Program, the report says.

Nortel believes its unified communications solutions can deliver
an ROI of up to 178%, with up to 30% savings on a company's mobile
communications bills, BNamericas adds.

                      About Nortel Networks

Nortel Networks Corporation -- http://www.nortel.com--
(NYSE/TSX: NT) is a global supplier of networking solutions
serving both service provider and enterprise customers.  It
supplies end-to-end networking products and solutions that help
organizations enhance and simplify communications.  Nortel
operates in four segments: Carrier Networks, Enterprise
Solutions, Metro Ethernet Networks and Global Services.  Nortel
Networks Limited is the company's principal operating
subsidiary.

The company's executive offices are located in Toronto and has
operations in the United Kingdom, China, Australia, Argentina
and Brazil, among others.

                          *     *     *

In May 2008, Standard & Poor's Ratings Services revised its
outlook on Toronto-based telecommunications equipment provider
Nortel Networks Ltd. to positive from stable.  At the same time,
S&P affirmed the ratings, including the 'B-' long-term corporate
credit rating, on the company.  The ratings on NNL are based on
the consolidation with parent Nortel Networks Corp.

At the same time, S&P assigned a 'B-' bank loan rating to NNL's
proposed US$500 million 10.75% senior unsecured notes due 2016.
The notes are being issued as an add-on to the existing
US$450 million 10.75% senior unsecured notes due 2016, issued
July 2006.  S&P also assigned a recovery rating of '4' to the
notes, indicating the expectation for average (30%-50%) recovery
in the event of payment default.  Nortel will use the net
proceeds from the new debt issuance, together with cash
balances, to repay Nortel Network Corp.'s US$675 million 4.25%
convertible notes maturing Sept. 1.

The TCR reported on Sept. 25, 2008, that Moody's Investors Service
revised its ratings outlook for the Nortel Networks Corporation
group of companies to negative from stable.  The group's corporate
family rating was affirmed as B3 as were the senior unsecured
ratings for debt instruments issued by Nortel and its wholly-owned
subsidiaries, Nortel Networks Limited and Nortel Networks Capital
Corporation.

Similarly, the company's SGL-2 speculative grade liquidity rating,
which indicates good liquidity, was also affirmed.


ODEBRECHT: Ecuador President Rejects Offer to End Contract Dispute
------------------------------------------------------------------
Odebrecht's offer to end a heated contract dispute with the
Ecuadorean government was shrugged off by President Rafael Correa,
Reuters reports, citing a government official.

According to Reuters, Mr. Correa expelled Odebrecht in September
and seized the company's installations over a disputed
hydroelectric dam that the government says was badly built.  The
company later offered to comply with the government's demands for
reimbursement of damages in a last ditch effort to keep US$800
million worth of contracts with the government, the report says.

"We have analyzed the terms and we believe it's not possible to
continue with the company," Strategic Sectors Minister Galo Borja
was cited by Reuters as saying.  "This (offer) was only a small
part; the damages and their (company) debt is much bigger."

In an October 1 report, Reuters said after Ecuador expelled the
firm, it sent troops to seize US$800 million worth of projects,
including an airport, two hydroelectric plants and a rural
irrigation project.  Mr. Correa also threatened  not to pay back a
US$200 million loan from Brazil linked to Odebrecht, Reuters adds.

Odebrecht is a Brazilian construction company.


TAM SA: Records 82.1% International Market Share in September 2008
------------------------------------------------------------------
TAM SA reported its operating data for September 2008 as disclosed
by the Brazilian National Civil Aviation Agency (ANAC).

According to ANAC, TAM registered 15% growth in domestic RPK
(demand) compared to the same period last year, and 17.5% increase
in domestic ASK (supply).  In September, market demand increased
4.6% and market supply increased 9.4%. TAM registered domestic
market share (RPK) of 52.8%, a 4.8 p.p. increase compared to the
same period in 2007.  TAM's domestic load factor was 64.6%, 3.4
p.p. higher than the market average of 61.3%.

In the international market, TAM registered 41.5% growth in RPK
and 25.4% in ASK, compared to September 2007.  The company
attained market share of 82.1%, representing 11.8 p.p. growth year
on year. TAM attained 80.4% load factor, 4.7 p.p. higher than the
market average of 75.7%.

Operating data                   Sep 2008     Sep 2007    Var. %
-----------------------------------------------------------------
Domestic Market
   ASK (millions) - Supply          2,948       2,509       17.5%
   RPK (millions) - Demand          1,906       1,657       15.0%
   Load Factor                      64.6%       66.0%    -1.4 p.p.
   Market share                     52.8%       48.0%     4.8 p.p.
International Market
   ASK (millions) - Supply          1,660       1,324       25.4%
   RPK (millions) - Demand          1,334         943       41.5%
   Load Factor                      80.4%       71.2%     9.2 p.p.
   Market share                     82.1%       70.3%    11.8 p.p.

Operating data                  Jan-Sep 2008  Jan-Sep 2007 Var. %
-----------------------------------------------------------------
Domestic Market
   ASK (millions) - Supply          25,927      22,699      14.2%
   RPK (millions) - Demand          17,957      15,946      12.6%
   Load Factor                       69.3%       70.2%   -1.0 p.p.
   Market share                      50.2%       49.1%    1.1 p.p.
International Market
   ASK (millions) - Supply          15,227      11,514      32.2%
   RPK (millions) - Demand          11,713       8,143      43.8%
   Load Factor                       76.9%       70.7%    6.2 p.p.
   Market share                      72.4%       68.4%    4.0 p.p.

Operating data                      3Q08        3Q07      Var. %
----------------------------------------------------------------
Domestic Market
   ASK (millions) - Supply           8,863      7,691       15.2%
   RPK (millions) - Demand           6,015      5,185       16.0%
   Load Factor                       67.9%      67.4%     0.5 p.p.
   Market share                      52.4%      49.2%     3.2 p.p.
International Market
   ASK (millions) - Supply           5,188      4,161       24.7%
   RPK (millions) - Demand           4,159      2,958       40.6%
   Load Factor                       80.2%      71.1%     9.1 p.p.
   Market share                      75.8%      69.2%     6.6 p.p.

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

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

                          *     *     *

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

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


USINAS SIDERURGICAS: Cosipa Acquires 49% of Dufer Stake
-------------------------------------------------------
Usinas Siderurgicas de Minas Gerais's subsidiary Companhia
Siderurgica Paulista (Cosipa) has bought a 49% stake in steel
product maker Dufer from German group Thyssen, Noticias
Financieras reports.

According to the report, the operation is worth BRL92 million.

Headquartered in Minas Gerais, Brazil, Usinas Siderurgicas de
Minas Gerais S.A. -- http://www.usiminas.com.br-- is among the
world's 20 largest steel manufacturing complexes, with a
production capacity of approximately 10 million tons of steel.
Usiminas System companies produces galvanized and non-coated
flat steel products for the automotive, small and large diameter
pipe, civil construction, hydro-electronic, rerolling,
agriculture, and road machinery industries.  Brazil consumes 80%
of its products and the company's largest export markets are the
US and Latin America.  The company also sells in China and
Japan.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 5, 2008, Moody's Investors Service assigned a Ba1 local
currency rating and an Aa1.br rating on its Brazilian national
scale to the BRL500 million non-guaranteed subordinated
debentures due 2013 to be issued by Usinas Siderurgicas de Minas
Gerais S.A. (aka Usiminas).  Net proceeds from the debentures
issuance will be used to partially fund the company's capex
program.  Moody's said the rating outlook is stable.


* BRAZIL: Fitch Revises Outlooks of Five Major Banks to Positive
----------------------------------------------------------------
Fitch Ratings has revised to Stable the Outlooks on the five
Brazilian banks which had a Positive Outlook.  The Positive
Outlooks on the affected banks were generally predicated on
expectations of continued loan and business expansion in an
environment of sustained strong growth of the Brazilian economy,
and relatively stable domestic markets, which would, as a
consequence, bring greater scale, diversification to both sides of
the balance sheet, and the profitability necessary to maintain
adequate capitalization.

The revision of the Outlooks reflects the increasingly challenging
operating environment given that current international and
domestic liquidity pressures on bank funding has made prospects
for continued growth more difficult; this is especially true for
those banks which depend largely on institutional funding.

The banks have generally been proactive in shifting their focus
from growth to preservation of liquidity.  Brazil's Central Bank
has also been forceful in taking measures aimed at boosting
liquidity in local markets, including lowering deposit reserve
requirements and broadening the scope of its rediscount
operations.  Fitch is also concerned that diminished liquidity and
more moderate economic growth will ultimately put pressure on
asset quality, which may become more evident in year-end results
but particularly into 2009.

Banco Daycoval S.A.

  -- Long-term foreign currency issuer default rating affirmed at
     'BB-'/Stable Outlook;

  -- Short-term foreign currency issuer default rating affirmed at
     'B';

  -- Long-term local currency issuer default rating affirmed at
     'BB-'/Stable Outlook;

  -- Short-term local currency issuer default rating affirmed at
     'B';

  -- Individual Rating affirmed at 'C/D';
  -- Support Rating affirmed at '5';
  -- Support Rating Floor 'No Floor' assigned;
  -- National Long-term Rating affirmed at 'A(bra)'/Outlook
     revised to Stable  -- National Short-term Rating affirmed at
     'F1(bra)'.

Banco Industrial e Comercial S.A. (BicBanco)

  -- Support Rating affirmed at '5';
  -- National Long-term Rating affirmed at 'A-(bra)'/Outlook
     revised to Stable;

  -- National Short-term Rating affirmed at 'F2(bra)';

Banco Panamericano S.A.

  -- Support Rating affirmed at '5';
  -- National Long-term Rating affirmed at 'BBB+(bra)'/Outlook
     revised to Stable;

  -- National Short-term Rating affirmed at 'F2(bra)';

Banco Pine S.A.

  -- Long-term foreign currency issuer default rating affirmed at
     'B+'/Outlook revised to Stable;

  -- Short-term foreign currency issuer default rating affirmed at
     'B';

  -- Long-term local currency issuer default rating affirmed at
     'B+'/Outlook revised to Stable;

  -- Short-term local currency issuer default rating affirmed at
     'B';

  -- Individual Rating affirmed at 'D';
  -- Support Rating affirmed at '5'
  -- Support Rating Floor affirmed at 'No floor';
  -- National Long-term Rating affirmed at 'A-(bra)' (A minus
     (bra))/Outlook revised to Stable;

  -- National Short-term Rating affirmed at 'F2(bra)';

Banco Tricury S.A.

  -- Support Rating affirmed at '5';

  -- National Long-term Rating affirmed at 'BB(bra)'/Outlook
     revised to Stable;

  -- National Short-term Rating affirmed at 'B(bra)'.



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

AHFP CONTEXT: To Hold Final Shareholders Meeting on Oct. 16
-----------------------------------------------------------
AHFP Context will hold its final shareholders meeting on Oct. 16,
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.

AHFP Context's shareholders decided on July 11, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidators can be reached at:

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


AHFP CONTRARIAN: Final Shareholders Meeting Is on Oct. 16
----------------------------------------------------------
AHFP Contrarian will hold its final shareholders meeting on
Oct. 16, 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.

AHFP Contrarian's shareholders decided on July 11, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

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


AHFP DEFIANCE: Holds Final Shareholders Meeting on Oct. 16
----------------------------------------------------------
AHFP Defiance will hold its final shareholders meeting on Oct. 16,
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.

AHFP Defiance's shareholders decided on July 11, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

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


AHFP GROUP G: Sets Final Shareholders Meeting for Oct. 16
---------------------------------------------------------
AHFP Group G will hold its final shareholders meeting on Oct. 16,
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.

AHFP Group G's shareholders decided on July 11, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidators can be reached at:

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


AHFP LAPP: Will Hold Final Shareholders Meeting on Oct. 16
----------------------------------------------------------
AHFP Lapp will hold its final shareholders meeting on Oct. 16,
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.

AHFP Lapp's shareholders decided on July 11, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidators can be reached at:

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


AHFP MYOJO: Holding Final Shareholders Meeting on Oct. 16
---------------------------------------------------------
AHFP Myojo will hold its final shareholders meeting on Oct. 16,
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.

AHFP Myojo's shareholders decided on July 11, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidators can be reached at:

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


AHFP PAULSON: To Hold Final Shareholders Meeting on Oct. 16
-----------------------------------------------------------
AHFP Paulson will hold its final shareholders meeting on Oct. 16,
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.

AHFP Paulson's shareholders decided on July 11, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidators can be reached at:

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


AHFP REDSTONE: Final Shareholders Meeting Is Set for Oct. 16
------------------------------------------------------------
AHFP Redstone will hold its final shareholders meeting on Oct. 16,
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.

AHFP Redstone's shareholders decided on July 11, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

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


AHFP TT EUROPE: Holds Final Shareholders Meeting on Oct. 16
-----------------------------------------------------------
AHFP TT Europe will hold its final shareholders meeting on
Oct. 16, 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.

AHFP TT Europe's shareholders decided on July 11, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

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


ALTERRA LIMA: Deadline for Proof of Claim Filing Is Oct. 16
-----------------------------------------------------------
Alterra Lima Holdings Ltd.'s creditors have until Oct. 16, 2008,
to prove their claims to Trulaw Directors 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.

Alterra Lima's shareholders agreed on Aug. 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:

               Trulaw Directors Ltd.
               P.O. Box 866
               Grand Cayman, Cayman Islands
               Tel: (345) 949-7555
               Fax: (345) 949-8492


ALTERRA LIMA: Holding Final Shareholders Meeting on Oct. 16
-----------------------------------------------------------
Alterra Lima Holdings Ltd. will hold its final shareholders
meeting on Oct. 16, 2008, at 11:00 a.m., at the registered office
of the company.

These matters will be taken up during the meeting:

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

Alterra Lima's shareholders agreed on Aug. 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:

               Trulaw Directors Ltd.
               P.O. Box 866
               Grand Cayman, Cayman Islands
               Tel: (345) 949-7555
               Fax: (345) 949-8492


FPO LIMITED: Will Hold Final Shareholders Meeting on Oct. 16
------------------------------------------------------------
FPO Limited Segregated Portfolio Company will hold its final
shareholders meeting on Oct. 16, 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.

FPO Limited's shareholders agreed on July 22, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidators can be reached at:

               Chris Watler and Emile Small
               c/o Maples Finance Limited
               P.O. Box 1093GT
               Grand Cayman, Cayman Islands


FRIEDBERG CURRENCY: Sets Final Shareholders Meeting on Oct. 16
--------------------------------------------------------------
Friedberg Currency Fund II Ltd. will hold its final shareholders
meeting on Oct. 16, 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.

Friedberg Currency's shareholder decided on Sept. 3, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

               Enrique Fenig
               c/o BCE Place
               181 Bay Street, Suite 250
               P.O. Box 866
               Toronto, Canada


LODSWORTH GEMD (MASTER): Final Shareholders Meeting Is Oct. 16
--------------------------------------------------------------
Lodsworth Gemd Fund (Master) Ltd. will hold its final shareholders
meeting on Oct. 16, 2008, at the offices of Dartley Bank & Trust
Limited, SG Hambro Building, West Bay Street, Nassau, Bahamas.

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

Lodsworth Gemd's shareholder decided on July 23, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

               Dartley Bank & Trust Company
               c/o Maples and Calder
               P.O. Box 309
               Ugland House, Grand Cayman
               Cayman Islands


LODSWORTH GLOBAL: Holds Final Shareholders Meeting on Oct. 16
-------------------------------------------------------------
Lodsworth Global Emerging Market Debt Fund Ltd. will hold its
final shareholders meeting on Oct. 16, 2008, at the offices of
Dartley Bank & Trust Limited, SG Hambro Building, West Bay Street,
Nassau, Bahamas.

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

Lodsworth Global's shareholder decided on July 23, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.

The liquidator can be reached at:

               Dartley Bank & Trust Company
               c/o Maples and Calder
               P.O. Box 309
               Ugland House, Grand Cayman
               Cayman Islands


NEW ONE: Will Hold Final Shareholders Meeting on Oct. 16
--------------------------------------------------------
New One Ltd. will hold its final shareholders meeting on Oct. 16,
2008, at 9:00 a.m., at the registered office of the company.

These matters will be taken up during the meeting:

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

New One's shareholders agreed on Aug. 27, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.

The liquidators can be reached at:

               Raymond E. Whittaker
               c/o FCM Ltd., Governor's Square
               Ground Floor, West Bay Road
               P.O. Box 1982
               Grand Cayman, Cayman Islands
               Tel: (345) 946-5125
               Fax: (345) 946-5126


THREADNEEDLE AIS: To Hold Final Shareholders Meeting on Oct. 16
---------------------------------------------------------------
Threadneedle AIS Fund Ltd. will hold its final shareholders
meeting on Oct. 16, 2008, at 10:00 a.m., at the registered office
of the company.

These matters will be taken up during the meeting:

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

Threadneedle AIS' 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:

               Prue Lawson
               Tel: (345) 914-8662
               Fax: (345) 945-4237


THREADNEEDLE AIS MASTER: Final Shareholders Meeting Is Oct. 16
--------------------------------------------------------------
Threadneedle AIS Master Fund Ltd. will hold its final shareholders
meeting on Oct. 16, 2008, at 10:00 a.m., at the registered office
of the company.

These matters will be taken up during the meeting:

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

Threadneedle AIS' 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:

               Prue Lawson
               Tel: (345) 914-8662
               Fax: (345) 945-4237


UNIVEST DIVERSIFIED: Final Shareholders Meeting Set for Oct. 16
---------------------------------------------------------------
Univest Diversified Fund I Ltd. will hold its final shareholders
meeting on Oct. 16, 2008, at 2:00 p.m., at the registered office
of the company.

These matters will be taken up during the meeting:

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

Univest Diversified's shareholder decided on April 10, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.

The liquidators can be reached at:

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

Contact for inquiries:

               Miguel Brown
               Telephone: (345) 914 8665
               Fax: (345) 945 4237



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

* DOMINICAN REPUBLIC: Court Rejects Objections in US$680 Mil. Suit
------------------------------------------------------------------
An arbitration tribunal constituted under the France-Dominican
Republic Bilateral Investment Treaty released an award last week
ruling on the jurisdictional objections raised by the Dominican
Republic in a claim brought by TCW and its parent company.  The
claim involves an investment in EDE ESTE, an electric distribution
company in the Dominican Republic that serves approximately
600,000 customers and has 1,200 employees.  The tribunal rejected
the objections raised by the Dominican Government and allowed
US$680 million in claims against the Republic to proceed to a
final hearing and an award on the merits of the dispute.

R. Blair Thomas, President of EDE ESTE and Group Managing Director
of TCW, said: "We are extremely pleased that the tribunal
convincingly rejected the Government's position. This arbitration
proceeding goes to the heart of the problems affecting the
Dominican electric sector and the unstable legal and regulatory
framework.  By holding the Government accountable we hope to
finally advance the prospect of having a reliable and efficient
electric sector for our customers."

On March 15, 2007, TCW and its parent company initiated an
arbitration under the bilateral treaty to resolve its allegations
that the Republic's treatment of the investment in EDE ESTE has
greatly diminished the value of EDE ESTE.  The Republic raised
objections to the jurisdiction of the tribunal to hear the claims
under the Treaty.  The Tribunal's decision rejected these
objections and now the arbitration will proceed to a final hearing
in 2009.

TCW and parent company Société Générale have consented to the
Dominican Republic to make the full award public, but the
Dominican Republic has not yet responded.  Under the applicable
arbitration rules, the award may be made public only with the
consent of both parties.

                            About TCW

Founded in 1971, The TCW Group develops and manages a broad range
of innovative, value-added investment products that strive to
enhance and protect clients' wealth.  The firm has approximately
US$130 billion in assets under management.  TCW clients include
many of the largest corporate and public pension plans, financial
institutions, endowments and foundations in the U.S., as well as a
substantial number of foreign investors and high net worth
individuals.  TCW is a subsidiary of Societe Generale Asset
Management, which has approximately US$500 billion under
management.

TCW's Energy & Infrastructure Group is one of the leading
providers of institutional capital to the energy sector globally
with assets under management of approximately US$7 billion and
capital invested in more than 250 energy projects and companies in
27 countries.  The Group has a 26-year track record in the
industry and operates from offices in Los Angeles, Houston, New
York, London and Sydney.

                           *    *    *

As reported in the Troubled Company Reporter-Latin America on
Sept. 29, 2008, Fitch Ratings affirmed the Dominican Republic's
ratings as:

  -- Foreign currency issuer default rating at 'B';
  -- Local currency issuer default rating at 'B';
  -- Country ceiling at 'B+';
  -- Brady bonds at 'B+/RR3';
  -- Senior unsecured debt at 'B/RR4';
  -- Short-term foreign currency issuer default rating at 'B'.



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

* HONDURAS: S&P Assigns Currency Sovereign Credit Ratings at B+/B
-----------------------------------------------------------------
On Oct. 8, 2008, Standard & Poor's Ratings Services assigned its
'B+' long-term and 'B' short-term foreign and local-currency
sovereign credit ratings to the Republic of Honduras.  At the same
time, S&P assigned a transfer and convertibility assessment of
'BB-' to the sovereign.  The outlook is stable.
     
Honduras is the 119th sovereign rated by S&P.

The ratings are supported by:

  * Low debt and debt-service burdens. S&P projects that central
    government debt will be only 18% of GDP in 2008.  In addition,
    projections are for total public-sector debt to be a modest
    26% of GDP in 2008, about half its level in 2005, largely
    because of debt forgiveness funded by official creditors.  S&P
    expects that gross external debt will be a modest 38% of
    external current account receipts in 2008.  Moreover, debt
    service -- including short-term debt -- is projected to remain
    at less than 10% of the country's current account receipts in
    the coming three to five years.

  * Good prospects for long-term economic growth and
    diversification of the economy.  S&P expects that both the
    industrial and agricultural sectors of the economy will keep
    expanding in coming years, partly because of the momentum from
    the implementation of the Dominican Republic-Central America
    Free Trade Agreement (DR-CAFTA).  Moreover, record levels of
    foreign direct investment in recent years -- especially in
    telecommunications, tourism, and in export-oriented maquila
    sectors -- should sustain long-term growth and slowly reduce
    the dependence on commodity exports.

The ratings on Honduras are constrained by:

  * Fiscal and monetary rigidities.  The public-sector borrowing
    requirement could reach 3% of GDP in 2008, with inflation
    reaching 14%.  Small domestic capital markets limit the
    government's ability to fund its budget deficit without
    straining the financial system.  Domestic credit from the
    financial system now exceeds 50% of GDP.  Although the
    entrance of foreign banks has strengthened the financial
    system, it could present a significant contingent liability to
    the government if the turmoil in international markets were to
    spill over into local markets.

  * Limited external liquidity combined with a rigid exchange
    rate.  Projections are for gross external financing
    requirements to exceed 100% of the country's current account
    receipts and usable foreign exchange reserves in coming years.
    Despite a recent reduction in external debt because of debt
    forgiveness, the combination of high inflation and a growing
    current account deficit (projected to reach 15% of GDP in
    2008) could place pressure on the central bank's level of
    foreign exchange reserves.

  * A weak economic base, with per capita income estimated at
    about only US$2,000 in 2008.  The economy is vulnerable to
    rapid changes in terms of trade because of the reliance on
    commodity exports as well as the dependence on oil imports.
    The poor physical infrastructure and low levels of human
    capital limit Honduras's long-term growth prospects.  About
    one-third of the population is estimated to subsist on less
    than US$2/day, and the adult literacy rate is only about 80%.

The stable outlook assumes that the government will take timely
measures to contain fiscal pressure, inflation, and a widening
current account deficit in the context of a worsening external
environment in 2008 and possibly in 2009.
     
Tighter fiscal and monetary policies that contain and reverse the
growth in the current account deficit -- as well as correct the
recent fall in foreign exchange reserves -- would strengthen
macroeconomic stability.  Steps to reform the energy sector to
both limit the level of fiscal subsidies and expand electricity
supply would sustain economic growth in coming years.  Continued
GDP growth with a moderate current account and fiscal deficit
could reduce the risk of a sudden loss of external liquidity,
potentially strengthening Honduras's creditworthiness.
     
Conversely, fiscal slippage -- especially on the public-sector
payroll and subsidies to the energy sector -- could contribute to
persistent large current account deficits.  The resulting decline
in foreign exchange reserves could raise the country's
vulnerability to a sudden external shock, undermining confidence
and weakening creditworthiness.

Ratings List:

Honduras (Republic of)

-- Sovereign Credit Rating                     B+/Stable/B    
-- Transfer and Convertibility Assessment      BB-



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

DIGICEL GROUP: Posts US$74.4MM Net Loss in Year Ended March 2008
----------------------------------------------------------------
Nation News and Jamaica Gleaner report that Digicel Group Limited
grew its operating profit six-fold in the financial year ended
March 2008.  But the company's bottom line continued to sag
beneath the weight of the debt used by founder Irishman Denis
O'Brien for the rapid expansion of his telecommunications empire.  
The company's net loss for the year was US$74.4 million, caused by
US$296.4 million of financing charges and exacerbated by a
US$26.7 million tax bill.

Based on the reports, in the year to the end of March, not only
had DGL racked up an accumulated deficit of US$1.25 billion, but
the firm remained so highly leveraged that its shareholder equity
was a negative US$953.9 million.

Mr. O'Brien, who holds 100% of the company, was in the process of
negotiating a new round of loans from World Bank subsidiary,
International Financial Corporation (IFC), to support company
expansion, the reports say.

Digicel, based on the reports, has not responded to previous
questions regarding those loans, but a posting on the IFC's Web
site suggests that one of Mr. O'Brien's applications, a
US$50 million to US$75 million loan for the Honduras operations,
was approved and the deal sealed on August 20.  Another
US$70 million loan is pending approval.

Still, the reports relate that the company show signs of
improvement even at the bottom line which reflects a
US$48.5 million, or 39%, improvement on the near US$123 million it
lost in FY2007.

Based on the reports, Digicel Group was US$2.9 billion in debt at
March 2008, which carries a heavier weight on the balance sheet
than assets valued at US$2.4 billion to US$1 billion of which is
fixed in property plant and equipment.  Total liabilities are just
under US$3.4 billion.

The company's cash fell from US$297 million last year to US$151
million, according to the reports.  The company had a negative
working capital of US$24.6 million.

Its current ratio, which assesses a company's ability to cover its
current year obligations in a crunch was less than one at 0.95
times, compared to 1.15 times at year ended March 2007, the
reports say.  Digicel says, however, that it has an undrawn credit
line of US$156 million that it can tap if needed.

The company has also indicated that it is making progress on
managing its liabilities, according to the reports.  In 2007, its
debt was 7.8 times earnings before interest taxes deprecation and
amortisation or EBITDA.  In 2008 debt had declined to 5.0 times
EBITDA.

               Supplier Agreement with Ericsson for
                   Network Deployment in Panama

Sweden's Ericsson said on October 2 that it has signed a sole-
supplier agreement with Digicel Group for the nationwide
deployment of a GSM/EDGE network in Panama.

Under the agreement, Ericsson will be sole supplier of a GSM/EDGE
network including radio access network, Mobile Softswitch
Solution, mobile backhaul solution with optical and microwave
products and a Convergent Charging and Billing solution.  Ericsson
will also be responsible for network deployment, systems
integration and learning services.

As reported by the Troubled Company Reporter-Latin America on
Sept. 10, 2008, various reports said Digicel Group is planning to
invest US$334 million into its Panama-based unit Digicel Central
America after the company won the country's GSM license in May.

Cellular News related that International Finance Corporation (IFC)
would likely offer funding assistance to infrastructure projects
in developing nations.  IFC has been tapped for a US$50 million
loan.

Digicel, Cellular News noted, also expects to contribute to the
local Panamanian economy, employing approximately 300 people
directly in its operations and leading to the indirect employment
of 1000 people.

An IFC report cited by The Jamaica Observer said the "project
consists of the construction and operation of a greenfield mobile
cellular telephone network in Panama."

                          About Ericsson

Ericsson, headquartered in Stockholm, Sweden, provides technology
and services to telecomms operators all over the world.  The group
has over 70,000 employees in 175 countries and reported revenues
of SEK189bn in 2007.

                           About Digicel

Digicel Group Limited -- http://www.digicelgroup.com/-- 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.


* JAMAICA: JSE Loses US$83.6 Billion of Value Since September
-------------------------------------------------------------
Jamaica Gleaner reports that investors continued to brace against
the markets Tuesday, October 7, slicing another
US$3.3 billion off the value of stocks, and increasing to
US$9.3 billion the value they have lopped off listed firms in the
week's first two trading days on the Jamaica Stock Exchange (JSE).

With market capitalization ending the day at US$732.04 billion,
the JSE has lost US$83.6 billion of its value since the start of
September, Jamaica Gleaner says.

According to Jamaica Gleaner, the market, last week, shed
US$30 billion of value and more than 4,000 points off the main
index.

Some Brokers have suggested that it is related to uneasiness over
the global credit crisis and an increasing unwillingness to take
risk.

"There appears that we are beginning to see a slowdown in the
decline of values, But I'd say there is a clear mood of
uncertainty," Jamaica Gleaner quoted one analyst as saying.

                          Major Indices

The Jamaican market's descent has pushed the JSE to an 11-month
low, but its performance tracks with major indices in the region
and across the world, Jamaica Gleaner notes.

Jamaica Gleaner states that investors, have been concerned whether
local financial firms particularly have been subject to contagion
from toxic assets held by American financial houses that have
tumbled in the wake of the subprime mortgage problem.

However, most listed firms here, in filings to the JSE, have said
that the faced little exposure and that any exposure would have
almost no material impact on their businesses, Jamaica Gleaner
adds.

                         Global Recession

Analysts, Jamaica Gleaner notes, suggested that the broader fear
is for a decline in the economy, set off by an expected global
recession, which would hurt profitability of listed firms.

But in the face of that retreat and falling stock prices,
brokerages have began to sell to clients that the time was right
to shop for bargains, Jamaica Gleaner relates.

                         Jamaica Broilers

During Oct. 7's session, the main JSE index declined 432 point, or
0.44%, to close at 98,070.59.  On the day 25 stocks traded, with
four advancing, five declining and 16 trading firm, the report
says.

Report shows that most financial sector equities were firm, with
the day's only gainer from this sector being Scotia DBG
Investments, up US$1 to US$24.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 20, 2008, Standard & Poor's Ratings Services assigned its 'B'
long-term foreign currency senior unsecured bond rating to
Jamaica's newly issued US$350 million, 8% bond, which is due
June 24, 2019.



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

CHEROKEE INTERNATIONAL: To Merge with Lineage Power Holdings
------------------------------------------------------------
Cherokee International Corporation disclosed in a Securities and
Exchange Commission filing that it has entered into a definitive
merger agreement with Lineage Power Holdings, Inc., under which
Lineage will acquire all of the outstanding shares of the company.

Under the terms of the agreement, stockholders of Cherokee
International will receive US$3.20 per share of common stock held,
in an all cash transaction, representing an aggregate enterprise
value of approximately US$105 million.  The transaction has been
unanimously approved by the board of directors of Cherokee
International, and certain stockholders have agreed to vote their
Cherokee International shares in favor of the transaction.

"We believe the sale of Cherokee to Lineage will add value and
scale for our customers," said Jeffrey Frank, Cherokee's President
and Chief Executive Officer.  "Over the past 30 years, Cherokee
has earned a great reputation for our strong engineering team,
manufacturing, quality and responsiveness, all of which come down
to our outstanding employees and our focus on the customer.  Going
forward, our employees and customers will be well served by
becoming part of Lineage and The Gores Group portfolio of
companies.  Gores has a stellar reputation for customer
satisfaction and the proven ability to profitably grow its
businesses."

According to Ryan Wald, Managing Director of The Gores Group,
Cherokee will become a division of Lineage and will continue to be
a leader in the custom power solutions marketplace.  

"We are impressed by the accomplishments that Jeff and his
management team have made to date regarding Cherokee's North
American and Asian operations," said Mr. Wald.  "We look forward
to partnering with them in those regions to create a more
compelling value proposition for our combined customers."

The transaction is subject to the approval of Cherokee
International's stockholders and to regulatory approvals. The
companies anticipate that the transaction will be completed in the
fourth calendar quarter of 2008.

Based in Tustin, California, Cherokee International Corp.
(NASDAQ:CHRK) -- http://www.cherokeellc.com/-- is a designer
and manufacturer of a range of switch mode power supplies for
original equipment manufacturers in the telecommunications,
networking, high-end workstations and other electronic equipment
industries.  The company has offices and manufacturing plants in
Tustin and Irvine, California, Wavre, Belgium, Bombay, India,
Guadalajara, Mexico, and Penang, Malaysia.

                         Going Concern Doubt

Mayer Hoffman McCann P.C. in Orange County, California, expressed
substantial doubt about the company's ability to continue as a
going concern after auditing the consolidated financial statements
of Cherokee International Corporation and subsidiaries as of Dec.
30, 2007, and Dec. 31, 2006.  The company's management anticipates
that there will be insufficient cash balances available to repay
the outstanding debt at its
maturity.

On Nov. 1, 2008, the US$46.6 million aggregate principal amount
outstanding under the company's 5.25% Senior Notes will become due
and payable. The company does not expect to have sufficient cash
available at the time of maturity to repay this indebtedness and
are currently working on a variety of possible alternatives to
satisfy this obligation.  The company also cannot be certain that
it will have sufficient assets or cash flow available to support
refinancing these notes at current market rates or on terms that
are satisfactory to the company.  If the company is unable to
refinance on terms satisfactory to it, it may be forced to
refinance on terms that are materially less favorable, seek funds
through other means such as a sale of some of assets, or otherwise
significantly alter its operating plan, any of which could have a
material adverse effect on its business, financial condition and
results of operation.  These circumstances create substantial
doubt about the company's ability to continue as a going concern.


CORPORACION DURANGO: Fitch Puts D Currency Issuer Default Ratings
-----------------------------------------------------------------
Fitch Ratings has downgraded the foreign and local currency issuer
default ratings of Corporacion Durango S.A. de C.V. to 'D' from
'CC' and has affirmed its 'CC/RR4' rating of the company's notes
due in 2017.  All ratings have been removed from Rating Watch
Negative.

Fitch's action follows the announcement by the company that it
will not make a coupon payment on its 2017 notes, and that it has
initiated a debt restructuring in Mexico through a Concurso
Mercantil process.

As of June 30, 2008, Durango had US$533 million of debt and
US$35 million of cash and marketable securities.  Short-term debt
totaled US$12 million and the company was scheduled to make a
US$26.5 million coupon payment on Oct. 5.

The company's debt consists primarily of the US$509 million notes
due in 2017.

During the latest 12 months ended June 30, 2008, Durango generated
US$65 million of EBITDA, a decline from US$126 million of EBITDA
during the LTM ended June 30, 2007.  The decline in the company's
operating profitability is due to continued high prices for old
corrugated containers, a key raw material, and rising energy
costs.  The increase in these two costs, plus other factors, have
led to a rise in the the company's unit cost per ton to US$619 for
the quarter ended June 30, 2008, from US$502 during the same
quarter in 2007.  Price increases have not offset these cost
increases, as Durango's prices have risen on average by only US$61
per ton during this time period.

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.


YRC WORLDWIDE: Reaffirms Financial Forecast for Second Half 2008
----------------------------------------------------------------
YRC Worldwide, Inc., in a Securities and Exchange Commission
filing, reaffirmed that it expects to have positive free cash flow
in both the third and fourth quarters of 2008 with a significant
debt reduction for the year.  In addition, the company expects to
remain in full compliance with all terms of its credit agreement,
including the leverage ratio.

"With more than US$9 billion in annual revenue and comprehensive
networks in the national and regional markets, we continue to
provide excellent service to our customers each and every day,"
stated Bill Zollars, Chairman, President and CEO of YRC Worldwide.
"Despite the continuing unrest in the broad financial markets, our
current financial position is solid and we remain well positioned
to weather this economic environment."

                       About YRC Worldwide

YRC Worldwide Inc. (Nasdaq: YRCW) -- http://www.yrcw.com/-- is
the holding company for a portfolio of successful brands
including Yellow Transportation, Roadway, Reimer Express, YRC
Logistics, New Penn, USF Holland, USF Reddaway, and USF Glen
Moore.  The enterprise provides global transportation services,
transportation management solutions and logistics management.
The portfolio of brands represents a comprehensive array of
services for the shipment of industrial, commercial and retail
goods domestically and internationally.  Headquartered in
Overland Park, Kansas, YRC Worldwide employs approximately
60,000 people.

The company has subsidiaries in Bermuda, the United Kingdom,
Netherlands, Singapore, Hong Kong and Mexico.

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
April 30, 2008, Standard & Poor's Ratings Services affirmed its
ratings on YRC Worldwide Inc., including the 'BB' corporate
credit rating, and removed the ratings from CreditWatch, where
they had been placed with negative implications on Feb. 21,
2008.  The outlook is negative.  The ratings had been placed on
CreditWatch because of heightened concerns over the company's
refinancing risk, earnings performance, and liquidity position
over the next year, given the slowing U.S. economy and
continuing pressures in the trucking sector.


YRC WORLDWIDE: Warns of Likely Impairment of Goodwill, Trade Names
------------------------------------------------------------------
YRC Worldwide Inc., disclosed in a Securities and Exchange
Commission filing that due to its current market capitalization of
YRC Worldwide Inc., and in light of current economic conditions,
the company's management believes that, as of Sept. 30, 2008, the
possibility of impairment exists in connection with goodwill and
trade names for the National Transportation segment, trade names
for the Regional Transportation segment and goodwill for the YRC
Logistics segment.

As a result of these indicators, the Company is testing these
assets.  Once the impairment tests are complete, the Company will
be able to conclude whether any impairment exists and to what
extent, if any, an impairment charge should be included in the
Company's third quarter 2008 financial results. Such impairment
charge, if any, would be non-cash in nature and excluded from the
leverage ratio calculation under the Company's credit facility and
asset-backed securitization facility.

                       About YRC Worldwide

YRC Worldwide Inc. (Nasdaq: YRCW) -- http://www.yrcw.com/-- is
the holding company for a portfolio of successful brands
including Yellow Transportation, Roadway, Reimer Express, YRC
Logistics, New Penn, USF Holland, USF Reddaway, and USF Glen
Moore.  The enterprise provides global transportation services,
transportation management solutions and logistics management.
The portfolio of brands represents a comprehensive array of
services for the shipment of industrial, commercial and retail
goods domestically and internationally.  Headquartered in
Overland Park, Kansas, YRC Worldwide employs approximately
60,000 people.

The company has subsidiaries in Bermuda, the United Kingdom,
Netherlands, Singapore, Hong Kong and Mexico.

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
April 30, 2008, Standard & Poor's Ratings Services affirmed its
ratings on YRC Worldwide Inc., including the 'BB' corporate
credit rating, and removed the ratings from CreditWatch, where
they had been placed with negative implications on Feb. 21,
2008.  The outlook is negative.  The ratings had been placed on
CreditWatch because of heightened concerns over the company's
refinancing risk, earnings performance, and liquidity position
over the next year, given the slowing U.S. economy and
continuing pressures in the trucking sector.



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

W HOLDING: NYSE Extends Common Stock Trading Period to Six Months
-----------------------------------------------------------------
W Holding Company Inc. disclosed that the New York Stock Exchange,
Inc. (NYSE) has granted its request for up to an additional six-
month trading period extension for its common stock, subject to
reassessment on an ongoing basis.  The company is not in
compliance with NYSE Listed Company Manual Section 802.01E because
it has not filed its Annual Report on Form 10-K for the year ended
Dec. 31, 2007.  

W Holding was not able to timely file the 2007 Form 10-K because
it has not completed its previously announced restatement of the
financial statements of the company.

The NYSE will closely monitor W Holding's progress in making its
delayed filings and the NYSE may accelerate a trading suspension
in the company's common stock prior to the end of the six-month
extended trading period, if circumstances warrant.  Additionally,
if W Holding has not filed all of its delayed filings by March 31,
2009, the end of the six-month trading period extension, the NYSE
will initiate suspension and delisting procedures against the
company.

                          About W Holding

W Holding Company, Inc. (NYSE: WHI) -- http://www.wholding.com.    
-- is the financial holding company for Westernbank Puerto Rico,
the second-largest commercial bank in Puerto Rico, based on
total assets, operating through 56 full-fledged branches,
including 20 Expresso of Westernbank branches), including 33 in
the southwestern region of Puerto Rico, 7 in the northeastern
region, 14 in the San Juan Metropolitan area and 2 in the
eastern region of Puerto Rico, and a fully functional banking
site on the Internet.  W Holding also owns Westernbank Insurance
Corp., a general insurance agent placing property, casualty,
life and disability insurance, whose results of operations and
financial condition are reported on a consolidated basis.

                    Non-Compliance Notification

As reported in the Troubled Company Reporter-Latin America on
July 28, 2008, the company has been notified by the New York
Stock Exchange, Inc. (NYSE) that the company is not in compliance
with NYSE Listed company Manual Section 802.01C because the
average closing price of the company's common stock has been less
than US$1 for 30 consecutive trading days.

Accordingly, the company is subject to the procedures specified in
Section 802.01C, which provides, among other things, that the
company must bring its share price and average share price back
above US$1 within six months following receipt of notification of
non-compliance.  If at the expiration of the six-month cure
period, the company's share price and average share price over the
preceding 30 trading days do not exceed US$1, the NYSE will
commence suspension and delisting proceedings.



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

HINDU CREDIT: President Says Government Bailout Not Necessary
-------------------------------------------------------------
The Hindu Credit Union Co-Operative Society Ltd can handle its own
affairs and does not need to be bailed out by Government, Trinidad
& Tobago Express quotes Hindu Credit President Harry Harnarine as
saying on Tuesday, October 7.

Mr. Harnarine, at a conference in the HCU Financial Complex
carpark in Chaguanas, said the board of directors should be
allowed to pay off its depositors and shareholders through
divestment of the HCU Financial Group of Companies, T&T Express
relates.

The president of the HCU Depositors and Shareholders Group, Robert
Nandlal, agreed with Mr. Harnarine and said a bailout would
ultimately result in the credit union being controlled by
government.

As reported by the Troubled Company Reporter-Latin America on
Oct. 9, 2008, citing Trinidad & Tobago Newsday, the Credit Union
Members Group (CRMG) called on the government to step in and
provide Hindu Credit with a cash injection of US$100 million and a
loan of US$200 million to prevent the financial institution from
closure or liquidation.

In a press statement cited by Newsday, public relations officer
for the Credit Union Members' Group, Deosaran Bisnath, said the
group had submitted proposals to Prime Minister Patrick Manning,
Finance Ministers Karen Nunez-Teshiera and Mariano Browne as well
as Labour Minister Rennie Dumas with a plan of action for the HCU
Group of Companies, including US$300 million in financial
assistance.

Stephen Dookie, committee member of the group, said Mr. Bisnath,
was not authorised to speak on behalf of their organisation.

"This is a one-man wrecking service and we are distancing
ourselves from Deosaran Bisnath.  He is no longer a member of our
group," T&T Express quotes Mr. Dookie as saying.

Mr. Harnarine insisted that Hindu Credit does no want any rescue
by the government, nor the taxpayers' money, T&T Express notes.  
He, however, said that Hindu Credit needs its board of directors
to continue plans to divest assets.  Mr. Harnarine disclosed that
depositors and shareholders are owed US$210 million.

Meanwhile Mr. Bisnath told the T&T Express on October 7 that his
group also represented shareholders.  He explained that his group
is "trying to get back the money of all shareholders" including
the small ones.  He lambasted Hindu Credit by accusing it of not
trying to sort out a recovery plan early on.

Mr. Harnarine said the Commissioner of Co-operatives, Charles
Mitchell, had received 3,500 letters from depositors and
shareholders requesting a copy of the report filed by auditors
Ernst and Young, T&T Express notes.  He said the board and members
of Hindu Credit had not received a copy of the report.  He said he
believes that the Commission has already decided to wind up the
HCU.

                       About Hindu Credit

Headquartered in Borough, Chaguanas, in Trinidad and Tobago, Hindu
Credit Union Co-Operative Society Limited (HCU) --
http://www.ourhcu.com/-- reportedly has between US$115.2 million    
and US$131.6 million in assets and a total of US$32.9 million in
liabilities.  It has a membership totaling more than 200,000.

                          *     *     *

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

                            ***********

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.


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