TCRLA_Public/081211.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

           Wednesday, December 11, 2008, Vol. 9, No. 246

                            Headlines

A R G E N T I N A

AES CORP: Edelap Denies Improper Transfer of Funds to Parent
DREMVER SRL: Trustee Verifying Proofs of Claim Until February 11
RADIOTAXI LIBRE: Trustee Verifying Proofs of Claim Until Feb. 18


B R A Z I L

BANCO ABC: Fitch Affirms 'BB+' Currency Issuer Default Ratings
BRASKEM SA: Board Okays Cancellation of Treasury Stocks
CAMARGO CORREA: To Build Commercial Complex in Angola
CAIXA ECONOMICA: Gives Up Plan to Buy Stakes in Homebuilders
ROYAL CARIBBEAN: Taps Ricardo Amaral as Managing Director-Brazil

XL CAPITAL: Gets Regulatory OK to Operate as Reinsurer in Brazil
* BRAZIL: Auto Sales Dropped 25.7% in November, Anfavea Says
* BRAZIL: Central Bank Won't Cut Rates Due to Inflation Concerns
* BRAZIL: Petrobras Gets US$10 Billion Loan Offer From China


C A Y M A N  I S L A N D S

AALL & COMPANY: Fixes Dec. 24 as Last Day to File Claims
AURARIAN OFFSHORE: Creditors' Proofs of Debt Due on December 29
CAYMAN ISLANDS PARATY: Commences Liquidation Proceedings
CCL CARDINALASIA: Creditors' Proofs of Debt Due on December 23
CRG/FX TRADING: Commences Liquidation Proceedings

FRM ACADEMY: Creditors' Proofs of Debt Due on December 24
FRM DIVERSIFIED: Creditors' Proofs of Debt Due on December 24
GENESIS VENTURES: Creditors' Proofs of Debt Due on December 24
G SQUARE: S&P Downgrades Rating on Class C Notes to 'BB'
GULF & DALLAS: Creditors' Proofs of Debt Due on December 24

HORIZON AL MASHRAQ: Commences Liquidation Proceedings
LARMAL INVESTMENT: Creditors' Proofs of Debt Due on December 24
MA INVESTMENTS: Creditors' Proofs of Debt Due on December 24
NEXVISION FUND: Creditors' Proofs of Debt Due on December 26
SABIN INVESTMENTS: Commences Liquidation Proceedings

SAX LEASING: Creditors' Proofs of Debt Due on December 23
SOLUS SHORT: Creditors' Proofs of Debt Due on December 24
SOLUS SHORT: Creditors' Proofs of Debt Due on December 24
TITAN HOLDINGS: Creditors' Proofs of Debt Due on December 24
VESUVIUS HOLDINGS: Creditors' Proofs of Debt Due on December 24

WHITEBRIDGE ASIA: Creditors' Proofs of Debt Due on December 24
YOKOHAMA EXCELLENT: Creditors' Proofs of Debt Due on December 24
ZEST INVESTMENTS: Creditors' Proofs of Debt Due on December 24
ZEST INVESTMENTS II: Creditors' Proofs of Debt Due on December 24
ZEST INVESTMENTS III: Fixes Dec. 24 as Last Day to File Claims


C O L O M B I A

BANCOLOMBIA: Shareholders Approve Ps$8.68-Billion Donations
ECOPETROL: To Invest US$90 Million in 4 Exploration Blocks
ECOPETROL: Taps MBS Value as Investor-Relations Advisors
TRANSTEL INTERMEDIA: S&P Lowers Corporate Credit Rating to 'D'


E C U A D O R

* ECUADOR: Seeks Support on Possible Default of Brazil Loan


M E X I C O

GRUPO POSADAS: Moody's Downgrades Senior Debt Rating to 'B1'
HOME INTERIORS: Jan. 15 Auction for U.S. and Mexico Assets Set
HOME INTERIORS: May Use Cash Collateral Until February 28
HOME INTERIORS: Court Approves Appointment of Chapter 11 Trustee
HOME INTERIORS: Obtains Go Signal to Sell Surplus Inventory


P U E R T O  R I C O

PILGRIM'S PRIDE: U.S. Trustee Appoints 9-Member Creditors Panel

X X X X X X X X


* Former Chrysler Chief Opposes Ouster of Big 3 CEOs


                         - - - - -


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

AES CORP: Edelap Denies Improper Transfer of Funds to Parent
------------------------------------------------------------
AES Corporation's Argentina unit, Edelap, has rejected local
government's fraud charges, saying its restructuring programs in
the past eight years have benefited local operations and allowed
it to invest more in the country, Lucas Bergman of Reuters writes.

As reported by the Troubled Company Reporter - Latin America on
December 8, 2008, Dow Jones Newswires said Edelap denied any
wrongdoings after Argentina's electricity regulator, ENRE, filed
charges against them in a federal criminal court, alleging Edelap
of defrauding the state.

According to a TCRLA report on Dec. 4, Reuters said the Argentine
government has discovered accounting irregularities in Edelap.
Reuters related the Planning Ministry said an audit had revealed
an "irregular" debt operation had benefited AES but left Edelap
without sufficient funds to guarantee services.  "As a result of
this maneuver, profit has shifted from Edelap to AES ... Edelap
remains in debt and cannot carry out the necessary investments to
maintain the service," the Ministry said.

According to Reuters, Edelap has denied the accusations and said
"The transactions have been transparent and legal and were in
benefit of Edelap's service and its clients."  It added that AES
had purchased its debt through other subsidiaries to help Edelap
financially since it could not meet its debt obligations at the
time.

                      About AES Corporation

The AES Corporation (NYSE:AES) -- http://www.aes.com/-- is one of
the world's largest global power companies, with 2007 revenues of
US$13.6 billion.  With operations in 29 countries on five
continents, AES's generation and distribution facilities have the
capacity to serve 100 million people worldwide.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
May 16, 2008, Moody's affirmed the ratings of AES, including the
company's Corporate Family Rating at B1, its Probability of
Default Rating at B1, its senior secured credit facilities at Ba1,
its second priority senior secured notes at Ba3, its senior
unsecured notes at B1 and its trust preferred securities at B3.
Moody's said the rating outlook for AES is stable.


DREMVER SRL: Trustee Verifying Proofs of Claim Until February 11
----------------------------------------------------------------
The court-appointed trustee for Dremver S.R.L.'s bankruptcy
proceedings will be verifying creditors' proofs of claim until
February 11, 2009.


RADIOTAXI LIBRE: Trustee Verifying Proofs of Claim Until Feb. 18
----------------------------------------------------------------
The court-appointed trustee for Radiotaxi Libre S.R.L.'s
bankruptcy proceedings will be verifying creditors' proofs of
claim until February 18, 2009.



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

BANCO ABC: Fitch Affirms 'BB+' Currency Issuer Default Ratings
--------------------------------------------------------------
Fitch Ratings has affirmed these ratings of Banco ABC Brasil S.A.

  -- Long-term Foreign and Local Currency IDRs at 'BB+';
  -- Short-term Foreign and Local Currency IDR at 'B';
  -- National Long-term Rating at 'AA-(bra)' (AA minus (bra));
  -- Support Rating at '3';
  -- Individual Rating at 'C/D';
  -- National Short-term Rating at 'F1+'.

The agency has simultaneously removed the Foreign and Local
Currency Long-term Issuer Default Ratings, and the National Long-
and Short-term Ratings from Rating Watch Negative.  The rating
Outlook for ABCbr's Long-term ratings is now Stable.

The removal of the RWN on ABCbr's ratings follows a similar action
taken on its parent Arab Banking Corporation on 2 December 2008,
which reflects Fitch's view that the level of support available to
ABC from its major shareholder remains unchanged.  The RWN on
ABC's IDRs and Support Rating had reflected Fitch's prior concerns
that the level of ongoing willingness by the major shareholders to
provide support to the bank in the future, in case of need, might
have weakened slightly.  These concerns were driven by the
damaging effect structured credit market-related losses in the
first quarter of 2008 and second half of 2007 could have on ABC's
franchise, profitability, funding and prospects.  However, the
agency has since conducted a further review of the support
available to ABC from its major founding shareholders, who have
confirmed their continued commitment.

The IDRs of ABCbr reflect Fitch's opinion about the importance of
the Brazilian franchise to the group's assets and the strong
operational and financial support from ABC.  The Individual Rating
reflects its good asset quality, historically above that of its
peer average, good credit controls, expertise in its main business
segments, growing profitability and a strategy consistent with the
macroeconomic climate.  However, the ratings also consider the
fact that ABCbr is a moderate sized bank with limited
diversification, presenting asset and liability concentrations
through its focus on lending to medium-sized and large companies

ABCbr, established in 1989, is controlled by the ABC Group (equity
of USD 2billion at December 2007) through Marsau Uruguay Holdings.
In May 2007, ABCbr substantially boosted its capital base when it
went public by placing non-voting preferred shares at the Bovespa
Level 2 on the New Brazilian Stock Market, which has strong
corporate governance rules and a tag along, giving minority
shareholders 100% of the value of the block of controlling shares
in the event of the sale of the institution.



BRASKEM SA: Board Okays Cancellation of Treasury Stocks
-------------------------------------------------------
Braskem S.A.'s management board decided in favor of a proposal to
cancel all treasury stocks.  This proposal is subject to approval
of the Extraordinary General Meeting to be held in December 22,
2008, according to RFP filed in December 4, 2008.

As of Dec. 4, Braskem has 16,850,657 treasury stocks, of which
6,251,744 were Ordinary stocks, 10,389,665 were class "A"
Preferred Stocks and 209,248 were class "B" Preferred Stocks.  Out
of this amount,

  (i) 10,099,500 class "A" preferred stocks were purchased in the
      2nd Stock Repurchase Program, begun in March 6, 2008;

(ii) 580,331 common stocks and 290,165 class "A" preferred stocks
      result from the capital reduction of its subsidiary Braskem
      Participaçoes S/A;

(iii) 2,108,823 common stocks and 209,048 class "B" preferred
      stocks result form the exercise of right to recess during
      purchase of petrochemical assets by Grupo Ipiranga; and

(iv) 3,562,590 common stocks and 200 class "B" preferred stocks
      result from the exercise of right to recess during the
      incorporation of stocks from Grust Holdings S/A.

With approval of cancellation, Braskem's capital stock will remain
unchanged, and the total number of stocks will become 507,540,997
stocks, of which 190,462,446 are common stocks, 316,484,733 class
"A" preferred stocks and 593,818 class "B" preferred stocks.

Braskem S.A.  -- http://www.braskem.com.br/-- is a thermoplastic
resins producer in Latin America, and is among the three largest
Brazilian-owned private industrial companies.  The company
operates 13 manufacturing plants located throughout Brazil and has
an annual production capacity of 5.8 million tons of resins and
other petrochemical products.  The company reported consolidated
net revenues of about US$9 billion in the trailing 12 months
through Sept. 30, 2007.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Nov. 11, 2008, Reuters said Braskem S.A. posted a third-quarter
net loss of BRL849 million (US$400.7 million) from a net income of
BRL132 million a year earlier, affected by the devaluation of the
real in the period.

As reported in the Troubled Company Reporter-Latin America on
Jan. 17, 2008, Fitch Ratings affirmed the 'BB+' foreign and local
currency issuer default ratings of Braskem S.A. Fitch also
affirmed the 'BB+' ratings on the company's senior unsecured notes
2008, 2014, and senior unsecured notes 2017.


CAMARGO CORREA: To Build Commercial Complex in Angola
-----------------------------------------------------
Camargo Correa SA plans to build a retail area with 10 buildings,
within the next two years, for Angolan and foreign companies
interested in setting up bases in Angola, Macauhub News reports,
citing Angolan news agency Angop.

According to the report, the project will boost the company's
investment portfolio in Angola from the current US$100 million to
US$500 million in 2010.

As reported by the Troubled Company Reporter - Latin America on
Nov. 11, 2008, Macauhub News said Camargo Correa plans to invest
US$2 million over the next few months in a partnership with Escom
Imobiliaria, of Portuguese Group Espirito Santo.  That report
related the partnership plans to hand to customers an eight-tower,
148 housing unit project in Angola, with areas ranging between 140
and 190 square metres.

Camargo Correa SA is one of the largest private industrial
conglomerates in Brazil.  The company is a holding company with
interests in cement, engineering and construction, textiles,
footwear and sportswear manufacturing.  It also owns non-
controlling equity interests in the energy, transportation
(highway concessions) and steel businesses.  During the last
12 months through June 2007, Camargo Correa had net sales of
BRL9.2 billion and EBITDA of BRL1.4 billion.

                          *     *     *

As reported by the Troubled Company Reporter-Asia Pacific on
October 6, 2008, Standard & Poor's Ratings Services affirmed its
'BB' long-term corporate credit ratings on Camargo Correa S.A. and
its subsidiary Camargo Correa Cimentos S.A., as well as its 'brAA'
Brazilian National Scale rating on Cimentos.  At the same time,
S&P affirmed its ratings on the issuances either made or
guaranteed by these two companies.  The outlook remained stable.


CAIXA ECONOMICA: Gives Up Plan to Buy Stakes in Homebuilders
------------------------------------------------------------
Government-controlled Caixa Economica Federal abandoned its plan
to buy stakes in homebuilders, Telma Marotto of Bloomberg News
reported, citing Valor Economico newspaper.

The plan was part of Brazil's strategy to inject capital in the
homebuilding industry, in order to rescue the industry, which has
been hit by the global credit crisis, according to a report by the
Troubled Company Reporter - Latin America on October 28, 2008,
citing Bloomberg News.

Citing Valor, Bloomberg News said the plan was abandoned after
homebuilders asked for changes in the plan on concern that Caixa
would have too much power over the industry because it issues
mortgages.

According to Bloomberg News, Valor said the Caixa's aid will be
limited to providing BRL3 billion (US$1.2 billion) in working
capital loans to homebuilders.

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.

                        *    *    *

Caixa Economica Federal continues to carry a Ba2 foreign currency
deposit rating from Moody's Investors Service.  The rating was
assigned by Moody's in May 2008.


ROYAL CARIBBEAN: Taps Ricardo Amaral as Managing Director-Brazil
----------------------------------------------------------------
Royal Caribbean Cruises Ltd. has selected Brazilian cruise
industry veteran Ricardo Amaral as managing director of its
operations in Brazil.

In the newly created position, Mr. Amaral will oversee all
commercial and operational activities for three of the company's
brands, Royal Caribbean International, Celebrity Cruises and
Azamara Cruises.  Amaral will assume his new position in January.

"We are very pleased to have such a seasoned cruise professional
joining us and helping us establish a team in Brazil," said
Michael Bayley, senior vice president, International, for Royal
Caribbean Cruises Ltd.  "Ricardo has a proven track record of
success in our industry, and a long working relationship with our
company.  This will serve him well as he works toward opening our
new office in Brazil, in 2009."

Amaral has 17 years of experience in the cruise industry, which
includes working for leading cruise companies as their local
representative and head of their marketing and sales operations in
Brazil.

For the past nine years, Amaral has worked as the director of
Marketing and Sales for Sun and Sea Representacoes, the company
that has represented Royal Caribbean in Brazil for 21 years.  In
that role he coordinated advertising, budgeting, sales, public
relations and commercial strategy for Royal Caribbean
International, Celebrity Cruises, Azamara Cruises.

Previously, Mr. Amaral spent seven years as a marketing manager
for Costa Crociere in Brazil, where he oversaw marketing planning,
budgeting, sales, and charters.  Prior to that, he held positions
at Oremar Brazil, working with Carnival and Cunard cruise lines,
and at Sheraton Brazil.

"We thank our colleagues at Sun and Sea Representacoes for their
outstanding service to our company over the past 21 years,"
Mr. Bayley said.  "They have done an excellent job working with us
and developing the cruise business throughout Brazil."

Mr. Amaral graduated from the Faculdades Integradas Hebraico
Brasileiras Renascenca, in 1991, with a degree in Hotel
Management.  In 2002, he earned a Masters degree in tourism from
the University of Sao Paulo, where he is currently completing a
Doctorate degree in tourism.  Mr. Amaral taught tourism and
marketing for 14 years in several of Brazil's leading schools,
including MBA courses in tourism at the University of Sao Paulo.
He also is the author of the book, "Cruzeiros Maritimos."

                     About Royal Caribbean

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

                            *     *     *

As reported in the Troubled Company Reporter on November 11, 2008,
Standard & Poor's Ratings Services placed its ratings for Miami,
Florida-based Royal Caribbean Cruises Ltd. on CreditWatch with
negative implications, including the 'BB+' corporate credit rating
and the 'BB+' issue-level rating on the company's senior unsecured
debt.



XL CAPITAL: Gets Regulatory OK to Operate as Reinsurer in Brazil
----------------------------------------------------------------
XL Capital Limited may now boost its share of the growing
Brazilian reinsurance market, after the firm received regulatory
approval to operate as a local reinsurer in the country, The Royal
Gazette reports.

The new local reinsurer, XL Re Brazil, will operate full offices
in Rio de Janeiro and in Sao Paulo, according to regional
operating officer Carlos Caputo, who will manage all XL Re
operations in Brazil, the report relates.

According to the report, law that ended Brazil's 69-year regulated
reinsurance monopoly grants local reinsurers right of first-
refusal for 100% of ceded reinsurance -- 60% of which must be
placed in the local market until 2010.  Up to 40% of business must
be placed in the local market thereafter, the report says.

"This approval signals the beginning of XL Re's service to the
entire Brazilian insurance market from both admitted and local
reinsurance platforms,"  James Veghte, chief executive of XL Re,
was quoted by the Gazette as saying.  "Our two-platform approach
speaks to our long-term commitment to the Brazilian market and
positions us to be a market leader.  We look forward to providing
Brazil an array of services and business specialties in a new
reinsurance environment," he said.

Headquartered in Bermuda, XL Capital Ltd. --
http://www.xlcapital.com/-- writes liability insurance and
reinsurance worldwide, specializing in low-frequency, high-
severity risks from riots to natural disasters.  The company
writes policies through numerous subsidiaries, many of them
offshore, and also manages a Lloyd's of London syndicate.  XL's
coverage includes general and executive liability, property, and
political risk insurance.  Its reinsurance covers property,
aviation, energy, nuclear accident, and professional indemnity.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Aug. 8, 2008, A.M. Best Co. assigned a debt rating of "bb+"
to XL Capital Ltd's US$500 million series C preference shares
issued in connection with the company's exercise of the put
option under its Mangrove Bay Pass Through Trust contingent
capital facility.  The rating is under review with negative
implications. Concurrently A.M. Best has withdrawn the debt
rating of "bb+" on Mangrove Bay's US$500 million 6.102% trust
preferred shares.


* BRAZIL: Auto Sales Dropped 25.7% in November, Anfavea Says
------------------------------------------------------------
Brazil's new car sales, production and exports fell in November
amid the global financial crisis, The Financial Times reports,
citing Anfavea, the local auto manufacturers' association.

FT says according to Anfavea, November new car and lorry sales
dropped 25.7% from the previous month, while production and
exports fell sharply by 34.4% and 23.1%, respectively.

Anfavea, FT relates, said Brazil vehicle sales totaled 177,800
units in November.  The sharp fall from October followed an 11%
drop in the previous month, putting an end to three years of
steady sales increases.

As reported by the Troubled Company Reporter - Latin America on
Nov. 26, 2008, Steel Guru News said Brazil's car industry and its
related workers are forging strategies that would help them cope a
severe recession in the sector.  Steel Guru related that the south
of Rio de Janeiro state, where car factories like Peugeot Citroen,
Volkswagen's truck and bus assembly plant and big metalwork, like
the Companhia Siderurgica Nacional operate, are on the alert.

According to Steel Guru News, a report released by Institute of
Geography & Statistics said unemployment between January and
October 2008 was about 8%, 1.6 percentage points lower than for
the same period in 2007.  But factories like Peugeot Citroen are
considering cancellation of reducing its daily three shifts to two
in order to cut costs, the same report said.

"Management is arguing that there are over 28,000 finished cars in
stock and that it makes no sense to produce more if people aren't
buying them," Steel Guru quoted Renato Soares, head of
Metalworkers' Union of South Fluminense, as saying.  The CSN
called for conversations with the union, saying that because of
the crisis, demand for car parts is falling, as is demand for
steel, he added.

The sharp downturn in the auto industry, according to FT, will be
an additional blow to struggling U.S. carmakers, which have been
able to turn to Brazil this year as one of their few sources of
income around the world.

According to FT, Brazil has been more resilient to the global
crisis among developed nations, and most economists expect it to
avoid recession next year.  Overall growth, however, is expected
to fall below an annual rate of 3% from more than 5% this year.

The Federative Republic of Brazil is the largest and most populous
country in South America.  It is the fifth largest country by
geographical area, the fifth most populous country, and the fourth
most populous democracy in the world.  Its population comprises
the majority of the world's Portuguese speakers.

According to Moody's Rating Agency, the country continues to carry
a BA1 local and foreign currency rating.


* BRAZIL: Central Bank Won't Cut Rates Due to Inflation Concerns
----------------------------------------------------------------
Brazil's central bank may keep the current benchmark interest rate
at a two-year high on inflation concerns amid political pressures
for an immediate cut to boost economic growth, Bloomberg News
reports.

Policy makers, led by Central Bank President Henrique Meirelles,
will keep the rate at 13.75% for a second straight meeting on
Dec. 10, according analysts surveyed by Bloomberg.

Inflation has exceeded targets for almost a year due to a
weakening currency and higher food prices, Bloomberg News says.
This has limited banks' ability to cut interest rates.

"We could end up in the worst of worlds: inflation with
recession," Paulo Vieira da Cunha, a voting member of the Central
Bank's board until last December, was quoted by Bloomberg News as
saying.  "The prospect is that a central bank fundamentally
concerned with inflation will wait a bit more before making its
next move."

According to Bloomberg News, top officials of the government,
which legally controls the Central Bank, are pressing the bank for
a cut, arguing Brazil's high interest costs are hurting companies
while slowing growth has pushed back inflationary pressures.

As reported by the Troubled Company Reporter - Latin America on
November 28, 2008, Bloomberg News said Brazil President Luiz
Inacio Lula da Silva asked his economic team to find measures to
reduce the interest rates charged by banks.  In that report,
Altamir Lopes, head of the central bank's economic research
department, said the average annual interest rate Brazilian banks
charge customers rose to 45% in early November, from an average
42.9% in October.  The same report related that the rate for
consumers reached 59.8% in the first 12 days of November, the
highest level in three years.

According to Bloomberg News, President Lula wants federally-
controlled banks such as Banco do Brasil SA and Caixa Economica
Federal to lead a reduction in rates charged by banks.

A rate cut would "be an extremely positive signal," for companies,
Development Minister Miguel Jorge said, in a Bloomberg Television
interview.

However, Vieira da Cunha, a partner at Tandem Global Partners LLC,
told Bloomberg that policy makers will only make a cut once it's
clear inflationary pressure stemming from the currency meltdown
has been "dissipated" by slower growth.

The Federative Republic of Brazil is the largest and most populous
country in South America.  It is the fifth largest country by
geographical area, the fifth most populous country, and the fourth
most populous democracy in the world.  Its population comprises
the majority of the world's Portuguese speakers.

According to Moody's Rating Agency, the country continues to carry
a BA1 local and foreign currency rating.


* BRAZIL: Petrobras Gets US$10 Billion Loan Offer From China
------------------------------------------------------------
Brazil's state-controlled Petrobras has received a US$10 billion
loan offer from the Chinese government for future oil exploration
in the pre-salt layer offshore Brazil, Brazzil Magazine reports,
citing Brazil's Ministry of Mines and Energy.

According to the report, Minister Edison Lobao said the company
also received offers from United Arab Emirates for the pre-salt
layer exploration, and from companies in Japan and Canada for its
oil field development.

Petrobras, the report relates, is due to announce a new oil field
investment plan later this month.

Bloomberg News relates Mr. Lobao said the company plans to spend
US$112 billion in the 2008-2012 period, or more than US$20 billion
a year, and may increase that amount in a 2009-2013 plan expected
to be released by the end of December.

However, large investments and declining oil prices are putting
pressure on Petrobras' ability to generate sufficient cash to
finance all its expansion needs, Bloomberg News cited Chief
Financial Officer Almir Barbassa as saying.  The company plans to
borrow about US$4 billion in international markets a year, he
said.

According to Brazzil Magazine, the company said that they are
willing to use part of the country's US$200 billion reserves to
ensure that the exploration plans will push through despite the
global financial crisis.

Brazil has discovered massive offshore oil reserves beneath the
sea floor and under the Earth's pre-salt layer, which estimated to
contain up to 14 billion barrels of crude, that required expensive
technology to drill, Brazzil Magazine reveals.

The Brazilian energy minister, however, has noted that developing
the oil fields will be profitable only if crude prices stay above
US$30 a barrel, Brazzil Magazine reports.

The Federative Republic of Brazil is the largest and most populous
country in South America.  It is the fifth largest country by
geographical area, the fifth most populous country, and the fourth
most populous democracy in the world.  Its population comprises
the majority of the world's Portuguese speakers.

According to Moody's Rating Agency, the country continues to carry
a BA1 local and foreign currency rating.



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

AALL & COMPANY: Fixes Dec. 24 as Last Day to File Claims
--------------------------------------------------------
The creditors of AALL & Company (Cayman) Ltd. are required to file
their proofs of debt by December 24, 2008, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on Nov. 7, 2008.

The company's liquidators are:

          Brian Patrick Randall
          Susan G. Raesmith
          B.P. Randall
          P O Box 1166, Grand Cayman KY1-1102
          Telephone:345-814-3117
          Facsimile:345-945-5772


AURARIAN OFFSHORE: Creditors' Proofs of Debt Due on December 29
---------------------------------------------------------------
The creditors of Aurarian Offshore, Ltd. are required to file
their proofs of debt by December 29, 2008, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on Nov. 13, 2008.

The company's liquidator is:

          DMS Corporate Services Ltd.
          c/o Bernadette Bailey-Lewis
          dms Corporate Services Ltd.
          dms House, 2nd Floor
          P.O. Box 1344, Grand Cayman KY1-1108
          Telephone:(345) 946 7665
          Facsimile:(345) 946 7666


CAYMAN ISLANDS PARATY: Commences Liquidation Proceedings
--------------------------------------------------------
Cayman Islands Paraty Overseas Fund, Ltd. commenced liquidation
proceedings on November 1, 2008.

Only creditors who can file their proofs of debt by Dec. 10, 2008,
will be included in the company's dividend distribution.

The company's liquidator is:

          Michael Bunn
          c/o Ogier
          Queensgate House, South Church Street
          PO Box 1234, Grand Cayman KY1-1108
          Cayman Islands
          Telephone:(345) 949 9876
          Facsimile:(345) 949 9877


CCL CARDINALASIA: Creditors' Proofs of Debt Due on December 23
--------------------------------------------------------------
The creditors of CCL Cardinalasia Absolute Fund are required to
file their proofs of debt by December 23, 2008, to be included in
the company's dividend distribution.

The company commenced liquidation proceedings on Nov. 12, 2008.

The company's liquidator is:

          Edward Shiu Lun Lee
          Suite 1909, 19th Floor
          9 Queen's Road Central
          Central, Hong Kong
          Telephone:(852) 2869 1201
          Facsimile:(852) 2869 1207


CRG/FX TRADING: Commences Liquidation Proceedings
-------------------------------------------------
CRG/FX Trading Partners II, Ltd. commenced liquidation proceedings
on October 28, 2008.

Only creditors who can file their proofs of debt by Dec. 8, 2008,
will be included in the company's dividend distribution.

The company's liquidator is:

          Ogier
          Telephone:(345) 949 9876
          Facsimile:(345) 949 1986
          c/o Angus Davison
          Queensgate House, South Church Street
          PO Box 1234, Grand Cayman KY1-1108
          Cayman Islands


FRM ACADEMY: Creditors' Proofs of Debt Due on December 24
---------------------------------------------------------
The creditors of FRM Academy Fund (Cayman Nominee) Limited are
required to file their proofs of debt by December 24, 2008, to be
included in the company's dividend distribution.

The company commenced liquidation proceedings on Nov. 5, 2008.

The company's liquidator is:

          John Renouf
          c/o FRM Investment Management Limited
          P.O. Box 173, Trafalgar Court
          Admiral Park, St. Peter Port
          Guernsey GY1 4HG
          Channel Islands


FRM DIVERSIFIED: Creditors' Proofs of Debt Due on December 24
-------------------------------------------------------------
The creditors of FRM Diversified Fund (Cayman Nominee) Limited are
required to file their proofs of debt by December 24, 2008, to be
included in the company's dividend distribution.

The company commenced liquidation proceedings on Nov. 5, 2008.

The company's liquidator is:

          John Renouf
          c/o FRM Investment Management Limited
          P.O. Box 173, Trafalgar Court
          Admiral Park, St. Peter Port
          Guernsey GY1 4HG
          Channel Islands


GENESIS VENTURES: Creditors' Proofs of Debt Due on December 24
--------------------------------------------------------------
The creditors of Genesis Ventures Ltd. are required to file their
proofs of debt by December 24, 2008, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on Nov. 7, 2008.

The company's liquidators are:

          Brian Patrick Randall
          Susan G. Raesmith
          B.P. Randall
          P O Box 1166, Grand Cayman KY1-1102
          Telephone:345-814-3117
          Facsimile:345-945-5772


G SQUARE: S&P Downgrades Rating on Class C Notes to 'BB'
--------------------------------------------------------
Standard & Poor's Ratings Services lowered and placed on
CreditWatch negative its credit ratings on the class A notes
issued by G Square Finance Ltd.  At the same time, the class B and
C notes were lowered and left on CreditWatch negative.

The rating actions follow S&P's downgrades and CreditWatch
negative placements of assets in the underlying portfolio
comprised of U.S. residential mortgage-backed securities and U.S.
collateralized debt obligations of asset-backed securities.  S&P's
opinion of the further deterioration in the credit quality of the
underlying portfolio has led us to believe that there will be an
increase in expected loss levels for all rating scenarios, and
those losses are not commensurate with S&P's previous ratings.

G Square Finance is a managed cash flow hybrid CDO of a portfolio
of U.S. dollar-denominated CDOs and ABS.  The transaction is
managed by Wharton Asset Management.

                            Rating List

                      G Square Finance Ltd.
            US$125 Million Secured Floating-Rate Notes

         Rating Lowered and Placed On CreditWatch Negative

              Class      To                    From
              -----      --                    ----
              A          AA/Watch Neg          AAA

         Rating Lowered and Kept On CreditWatch Negative

              Class      To                    From
              -----      --                    ----
              B          BBB+/Watch Neg        AA/Watch Neg
              C          BB/Watch Neg          BBB/Watch Neg


GULF & DALLAS: Creditors' Proofs of Debt Due on December 24
-----------------------------------------------------------
The creditors of Gulf & Dallas Oil Middle East Ltd. are required
to file their proofs of debt by December 24, 2008, to be included
in the company's dividend distribution.

The company's liquidator is:

          Richard Hoare
          16 Charles II Street
          London SW1Y 4QU
          United Kingdom


HORIZON AL MASHRAQ: Commences Liquidation Proceedings
-----------------------------------------------------
Horizon Al Mashraq Fund commenced liquidation proceedings on
Nov. 12, 2008.

Only creditors who were able to file their proofs of debt by
December 8, 2008, will be included in the company's dividen
distribution.

The company's liquidator is:

          Ogier
          c/o Jonathan McLean
          c/o Ogier, PO Box 1234
          Grand Cayman KY1-1108
          Cayman Islands
          Telephone:(345) 815-1705
          Facsimile:(345) 949 1986


LARMAL INVESTMENT: Creditors' Proofs of Debt Due on December 24
---------------------------------------------------------------
The creditors of Larmal Investment Corporation Limited are
required to file their proofs of debt by December 24, 2008, to be
included in the company's dividend distribution.

The company commenced liquidation proceedings on Nov. 12, 2008.

The company's liquidators are:

          Brian Patrick Randall
          Susan G. Raesmith
          B.P. Randall
          P O Box 1166, Grand Cayman KY1-1102
          Telephone:345-814-3117
          Facsimile:345-945-5772


MA INVESTMENTS: Creditors' Proofs of Debt Due on December 24
------------------------------------------------------------
The creditors of MA Investments, LDC are required to file their
proofs of debt by December 24, 2008, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on Nov. 7, 2008.

The company's liquidator is:

          DMS Corporate Services Ltd.
          c/o Mourant Du Feu & Jeune
          Attorneys-at-law for the Company
          Mourant du Feu & Jeune
          c/o P.O. Box 1348, Grand Cayman KY1-1108
          Cayman Islands
          Telephone:(+1) 345 949 4123
          Facsimile:(+1) 345 949 4647


NEXVISION FUND: Creditors' Proofs of Debt Due on December 26
------------------------------------------------------------
The creditors of Nexvision Fund I SPC are required to file their
proofs of debt by December 26, 2008, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on Nov. 9, 2008.

The company's liquidators are:

          Christopher Humphries
          Gregory Thompson
          c/o Stuarts Walker Hersant
          P.O. Box 2510
          Grand Cayman KY1-1104
          Telephone:(345) 949 3344
          Facsimile:(345) 949 2888


SABIN INVESTMENTS: Commences Liquidation Proceedings
----------------------------------------------------
Sabin Investments Ltd. commenced liquidation proceedings on
Nov. 7, 2008.

The company's liquidator is:

          J. Priaulx
          Le Bourg, Forest, Guernsey GY8 0DS
          Great Britain


SAX LEASING: Creditors' Proofs of Debt Due on December 23
---------------------------------------------------------
The creditors of Sax Leasing No.1 are required to file their
proofs of debt by December 23, 2008, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on Nov. 12, 2008.

The company's liquidator is:

          Griffin Management Limited
          c/o Janeen Aljadir
          Caledonian Trust (Cayman) Limited
          Caledonian House, 69 Dr. Roy's Drive
          P.O. Box 1043, Grand Cayman KY1-1102
          Cayman Islands
          Telephone:(345) 914 -4943
          Facsimile:(345) 814-4859


SOLUS SHORT: Creditors' Proofs of Debt Due on December 24
---------------------------------------------------------
The creditors of Solus Short Opportunities Master Fund Ltd. are
required to file their proofs of debt by December 24, 2008, to be
included in the company's dividend distribution.

The company commenced liquidation proceedings on Nov. 11, 2008.

The company's liquidator is:

          Christopher Pucillo
          c/o Ian Gobin
          Walkers, Walker House, 87 Mary Street
          George Town, Grand Cayman KY1-9001
          Cayman Islands
          Telephone:(345) 814 4604
          Facsimile:(345) 949 7886


SOLUS SHORT: Creditors' Proofs of Debt Due on December 24
---------------------------------------------------------
The creditors of Solus Short Opportunities Fund Ltd. are required
to file their proofs of debt by December 24, 2008, to be included
in the company's dividend distribution.

The company commenced liquidation proceedings on Nov. 11, 2008.

The company's liquidator is:

          Christopher Pucillo
          c/o Ian Gobin
          Walkers, Walker House, 87 Mary Street
          George Town, Grand Cayman KY1-9001
          Cayman Islands
          Telephone:(345) 814 4604
          Facsimile:(345) 949 7886


TITAN HOLDINGS: Creditors' Proofs of Debt Due on December 24
------------------------------------------------------------
The creditors of Titan Holdings Ltd. are required to file their
proofs of debt by December 24, 2008, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on Nov. 7, 2008.

The company's liquidators are:

          Brian Patrick Randall
          Susan G. Raesmith
          B.P. Randall
          P O Box 1166, Grand Cayman KY1-1102
          Telephone:345-814-3117
          Facsimile:345-945-5772


VESUVIUS HOLDINGS: Creditors' Proofs of Debt Due on December 24
---------------------------------------------------------------
The creditors of Vesuvius Holdings Ltd. are required to file their
proofs of debt by December 24, 2008, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on Nov. 7, 2008.

The company's liquidators are:

          Brian Patrick Randall
          Susan G. Raesmith
          B.P. Randall
          P O Box 1166, Grand Cayman KY1-1102
          Telephone:345-814-3117
          Facsimile:345-945-5772


WHITEBRIDGE ASIA: Creditors' Proofs of Debt Due on December 24
--------------------------------------------------------------
The creditors of Whitebridge Asia Plus Fund Limited are required
to file their proofs of debt by December 24, 2008, to be included
in the company's dividend distribution.

The company commenced liquidation proceedings on Nov. 11, 2008.

The company's liquidator is:

          William Phillips
          c/o Ian Gobin
          Walkers, Walker House, 87 Mary Street
          George Town Grand Cayman KY1-9001
          Cayman Islands
          Telephone:(345) 814 4604
          Facsimile:(345) 949 7886


YOKOHAMA EXCELLENT: Creditors' Proofs of Debt Due on December 24
----------------------------------------------------------------
The creditors of Yokohama Excellent Holdings Inc. are required to
file their proofs of debt by December 24, 2008, to be included in
the company's dividend distribution.

The company commenced liquidation proceedings on Nov. 12, 2008.

The company's liquidator is:

          Walkers SPV Limited
          c/o Anthony Johnson
          Walker House, 87 Mary Street, George Town
          Grand Cayman, KY1-9002, Cayman Islands
          Telephone:(345) 914-6314


ZEST INVESTMENTS: Creditors' Proofs of Debt Due on December 24
--------------------------------------------------------------
The creditors of Zest Investments Limited are required to file
their proofs of debt by December 24, 2008, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on Nov. 5, 2008.

The company's liquidator is:

          Candace Ebanks
          c/o Candace Ebanks
          c/o BNP Paribas Bank & Trust Cayman Limited
          PO Box 10632, 3rd Floor Royal Bank House
          Shedden Road, George Town
          Grand Cayman KY1-1006, Cayman Islands
          Telephone: 345 945 9208
          Fax: 345 945 9210


ZEST INVESTMENTS II: Creditors' Proofs of Debt Due on December 24
-----------------------------------------------------------------
The creditors of Zest Investments II are required to file their
proofs of debt by December 24, 2008, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on Nov. 5, 2008.

The company's liquidator is:

          Candace Ebanks
          c/o Candace Ebanks
          c/o BNP Paribas Bank & Trust Cayman Limited
          PO Box 10632, 3rd Floor Royal Bank House
          Shedden Road, George Town
          Grand Cayman KY1-1006, Cayman Islands
          Telephone: 345 945 9208
          Fax: 345 945 9210


ZEST INVESTMENTS III: Fixes Dec. 24 as Last Day to File Claims
--------------------------------------------------------------
The creditors of Zest Investments III are required to file their
proofs of debt by December 24, 2008, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on Nov. 5, 2008.

The company's liquidator is:

          Candace Ebanks
          c/o Candace Ebanks
          c/o BNP Paribas Bank & Trust Cayman Limited
          PO Box 10632, 3rd Floor Royal Bank House
          Shedden Road, George Town
          Grand Cayman KY1-1006, Cayman Islands
          Telephone: 345 945 9208
          Fax: 345 945 9210



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

BANCOLOMBIA: Shareholders Approve Ps$8.68-Billion Donations
-----------------------------------------------------------
As of Dec. 9, 2008, Bancolombia S.A. has made donations totaling
Ps$8,676 million (about US$3.7 million).  The donations were duly
authorized at the general shareholders meeting and by the board of
directors of the firm.

The beneficiaries contributed to the social development,
protection and welfare, culture, civic-mindedness, charity, health
and/or education of Colombia.  Bancolombia does not have any
commercial relationship with any of the beneficiaries.

Bancolombia expects to obtain tax benefits, in accordance with the
terms of the current Colombian tax regulations.

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

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 23, 2008, Moody's Investors Service upgraded to Ba2, stable
from Ba3, positive the foreign-currency deposit ratings assigned
to the two banks it rates in Colombia.  This action is the direct
result of Moody's decision to upgrade Colombia's foreign currency
country ceilings for bonds and deposits to Baa3 and Ba2,
respectively.

At the same time, Moody's upgraded Bancolombia's foreign currency
subordinated bond rating to Baa3 from Ba1.  The outlook is stable.



ECOPETROL: To Invest US$90 Million in 4 Exploration Blocks
----------------------------------------------------------
Ecopetrol submitted the most competitive bids for four exploration
blocks included in the 2008 Mini Round prepared by the National
Hydrocarbon Agency (ANH).

The awarded blocks are Llanos 4, Llanos 9, Llanos 14 and VMM 6,
covering an approximate area of 270 thousand hectares and are
located in the Eastern Plains region and the Middle Magdalena
Valley.

The award of these blocks is subject to final approval by the ANH.

The bids submitted in Bogota position Ecopetrol as the eligible
party for the subscription of the Exploration and Production (E&P)
contracts with the ANH in relation to the awarded exploration
blocks.

The total investments associated with these exploration blocks
will amount to approximately US$90 million during the next three
years.

The results from the Mini Round strengthen Ecopetrol's presence in
the country's exploration areas, and represent a step forward
towards achieving the goals set forth for the year 2015.

Ecopetrol S.A. -- http://www.ecopetrol.com.co.-- is the largest
company in Colombia as measured by revenue, profit, assets and
shareholders' equity. The Company is Colombia's only vertically
integrated crude oil and natural gas company with operations in
Colombia and overseas. Ecopetrol is one of the 40 largest
petroleum companies in the world and one of the four principal
petroleum companies in Latin America. It is majority owned by the
Republic of Colombia and its shares trade on the Bolsa de Valores
de Colombia S.A. (BVC) under the symbol ECOPETROL. The Company
divides its operations into four business segments that include
exploration and production; transportation; refining; and
marketing of crude oil, natural gas and refined-products.

                          *     *     *

As reported by the Troubled Company Reporter-Latin America on
November 12, 2008, Fitch Ratings affirmed Ecopetrol S.A.'s
foreign and local currency issuer default ratings at 'BB+' and
'BBB-', respectively.  The Rating Outlook is Stable.


ECOPETROL: Taps MBS Value as Investor-Relations Advisors
--------------------------------------------------------
Ecopetrol S.A. has selected MBS Value Partners as its
international investor relations advisors.

"We are delighted to be working with Ecopetrol at this important
juncture in its history," noted Monique Skruzny and Lynn Morgen,
funding partners of MBS.  "We look forward to assisting Ecopetrol
in fully leveraging its recent ADR listing to support the
Company's growth plans."

On September 18, 2008, trading of Ecopetrol's American Depositary
Receipts (ADRs) began on the NYSE.  The listing, which was not in
connection with a new offering, follows Ecopetrol's US$2.8 billion
IPO in 2007 in which 10.1% of the Company was sold to domestic
investors.

Ecopetrol S.A. -- http://www.ecopetrol.com.co.-- is the largest
company in Colombia as measured by revenue, profit, assets and
shareholders' equity. The Company is Colombia's only vertically
integrated crude oil and natural gas company with operations in
Colombia and overseas. Ecopetrol is one of the 40 largest
petroleum companies in the world and one of the four principal
petroleum companies in Latin America. It is majority owned by the
Republic of Colombia and its shares trade on the Bolsa de Valores
de Colombia S.A. (BVC) under the symbol ECOPETROL. The Company
divides its operations into four business segments that include
exploration and production; transportation; refining; and
marketing of crude oil, natural gas and refined-products.

                         *     *     *

As reported by the Troubled Company Reporter-Latin America on
November 12, 2008, Fitch Ratings affirmed Ecopetrol S.A.'s
foreign and local currency issuer default ratings at 'BB+' and
'BBB-', respectively.  The Rating Outlook is Stable.


TRANSTEL INTERMEDIA: S&P Lowers Corporate Credit Rating to 'D'
--------------------------------------------------------------
Standard & Poor's Ratings Services said that it lowered its long-
term corporate credit rating on Colombia-based telephone company
Transtel Intermedia S.A. to 'D' from 'CCC-'.

S&P also lowered the ratings on Transtel's US$170 million 12%
senior unsecured notes due 2016 to 'D' from 'CCC-'.

The downgrade is based on Transtel's failure to pay its coupon
payment due Dec. 1, 2008.

"Although the structure allows a 30-day grace period, it is highly
unlikely that the company can make the coupon payment within the
grace period, because of its tight liquidity," said S&P's credit
analyst Fabiola Ortiz.

As of the third quarter, the company held only US$2.4 million in
cash and equivalents, while the interest payment was about
US$10.2 million.  During the 12 months ended September 2008,
contrary to S&P's expectations, the company did not generate free
cash flow.

Transtel is one of the largest private telephone entities in
Colombia.  As a holding company, it owns majority equity stakes in
seven fixed-line local telephone operating companies and one cable
TV company.



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

* ECUADOR: Seeks Support on Possible Default of Brazil Loan
-----------------------------------------------------------
Ecuador is seeking support from countries in Latin America on
President Rafael Correa's decision on whether to default on
US$3.9 billion in bonds that the government considers "illegal,"
Bloomberg News reports, citing Policy Minister Ricardo Patino.

As published in the Troubled Company Reporter-Latin America on
Nov. 25, 2008, Reuters reported that President Correa said he
would not withdraw an international suit to suspend a Brazilian
loan repayment even if it frays diplomatic ties between the two
countries.

In that TCRLA report, Bloomberg News said Ecuador filed a lawsuit
to suspend payment on a loan owed to a Brazilian government bank,
charging that the credit's terms are unlawful.

Bloomberg News recalled the country's debt audit commission
uncovered "illegality and illegitimacy" in the country's foreign
obligations and stated that the government's global bonds due in
2012 and 2030 "show serious signs of illegality," such as a lack
of government authorization for their issuance.

Bloomberg News related Jorge Glas, head of a government fund
handling the lawsuit, said the loan granted by BNDES, Brazil's
state development bank, was linked to a construction company that
was expelled from the country over a contractual dispute.

In September, Bloomberg News recounted, President Correa
threatened not to repay the central bank, holding that the loan
was granted to Brazilian top construction firm Odebrecht to build
a plant and not to the government.

According to Bloomberg News, Minister Patino said the country is
seeking support from Argentina, Venezuela, Bolivia and Central
American countries for its decision to declare part of its
estimated US$10 billion in foreign debt illegal.  The country is
also sending a delegation to Chile and Peru to seek their support
for any decision regarding those bonds, and Minister Patino with
Finance Minister Maria Elsa Viteri will meet U.S. legislators on
today, the report relates.

"We're certainly going to have some conflict with bond holders,
the majority of whom have made an enormous fortune during these
past 30 years speculating and charging usurious interest rates,"
Bloomberg News quoted Minister Patino as saying.  "We have to
recognize as well some co-responsibility by our former officials,"
he said.

        Brazil Says Ecuador Could Lose Future Financing

Brazil's foreign minister says Ecuador could lose Brazilian
financing for infrastructure projects because it is contesting
payment of a loan for a hydroelectric dam, Associated Press
reports.

Foreign Minister Celso Amorim, Reuters relates, tells lawmakers
that Ecuador "shot itself in the foot" with its action, which also
involved expelling executives of the Brazilian company that built
the dam.

According to the report, Ecuador has challenged the
US$246.9 million loan from Brazil's National Development Bank,
alleging the dam builder did shoddy work.

Minister Amorim, the report notes, said Brazil is among the few
sources of loans left for Ecuador because of the global credit
crunch.

One project at risk is a land-and-river trade route linking
Brazil's Amazon rain forest to Ecuador's Pacific coast, Reuters
says.



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

GRUPO POSADAS: Moody's Downgrades Senior Debt Rating to 'B1'
------------------------------------------------------------
Moody's Investors Service downgraded Grupo Posadas, S.A.B. de
C.V.'s senior unsecured debt and corporate family ratings to B1
from Ba3.  The ratings outlook is negative.  This rating action
concludes the review for possible downgrade initiated on
October 23, 2008.

The downgrade reflects Posadas' currently tight liquidity, caused
by recent margin calls under certain derivative contracts, and the
expected deterioration of credit metrics because of the need to
externally fund the cash collateral requirements of those
derivatives and re-establish short-term financial flexibility.

"The downgrade also incorporates the view that the continued
deterioration of economic conditions may challenge near-term cash
flow generation and create additional pressure on credit metrics,"
said Moody's Vice President Sebastian Hofmeister.

The margin calls on the derivative contracts were triggered by the
material depreciation of the Mexican peso in October and November.
They relate to cross currency swaps that convert the principal of
peso denominated debt-instruments (primarily certificados
bursatiles or local notes) into U.S. dollars.  Posadas generates
most of its EBITDA in U.S. dollars, which provides a natural hedge
for the company's U.S. dollar-denominated debt structure after the
effect of the derivatives.

The funds that Posadas has obtained in recent weeks, through
short-term bank lines and a drawdown under an existing factoring
facility, have allowed the company to meet its margin calls; they
also create a modest cushion for potential additional near-term
cash requirements.  However, despite this funding, Moody's
considers the company's liquidity to remain relatively tight.

The rating agency estimates that current unrestricted cash
reserves of around MXN900 million only cover about 80% of the
company's estimated 2009 debt maturities, creating refinancing
risk should free cash flow remain insufficient.  In addition, the
company has not closed its major derivative positions, which
expose it to potential further margin calls should the peso
continue to depreciate.  Posadas has relatively ample room under
financial covenants contained in its major debt agreements,
theoretically enabling the company to raise additional funds if
needed, although in practice this may be challenging under current
credit market conditions.

Posadas' topline growth has been holding up well in recent
quarters, while margins have come under modest pressure as the
stable performance in its urban hotels could not fully offset
lower activity at coastal destinations.  For the 12 months ended
September 30, 2008, Posadas reported revenues and EBITDA of
MXN6,780 million and MXN1,546 million, respectively, with the
EBITDA margin coming in at 22.9%, down 160 basis points from 2007.

Moody's believes that earnings could come under additional
pressure as economic conditions begin to take a greater toll on
room rates and occupancy over the coming year, particularly in the
more cyclical coastal operations and the Vacation Club time-share
business, which accounted for about 20% of LTM revenues.  LTM free
cash flow was about US$12 million, although this figure reflected
significant growth capex and dividends payout, which could both be
cut back to offset lower earnings.

Over the coming quarters Moody's expects credit metrics to weaken
to levels more in line with a single-B rating because of the
additional debt the company will likely take on in 4Q08 to restore
its short-term financial flexibility.  Assuming that the new debt
would amount to around MXN1.1 billion, pro forma LTM 3Q08 adjusted
Debt/EBITDA would have been 4.6 times and EBIT/Interest would have
been 2.2 times, versus 4.0 times and 2.6 times on an actual basis.

To the extent that weaker earning caused free cash flow to
deteriorate, credit metrics could come under additional pressure.
While the weaker peso will also pressure credit metrics (as
measured in peso-terms) over the coming quarters because of the
large share of U.S. dollar denominated debt, Moody's expects the
effect to dissipate as Posadas generates dollar earnings at the
new exchange rate over the next year.

Posadas's ratings are supported by its leading position and brand
recognition in the Mexican hotel industry, nationwide coverage,
segment diversification, a track record of positive free cash flow
generation and the ongoing shift of its business mix towards the
less cyclical and less capital intensive management of third party
hotels.  Key credit challenges include the company's limited
operating scale, the substantial financial leverage and weak
liquidity as outlined above, stiff competition from large,
financially strong domestic and international chains (particularly
in the 4-star segment), and the pronounced cyclicality of the
lodging industry.  The ratings also incorporate Moody's belief
that Mexicana, an ailing airline, may in the future require
financial support from Posadas, its largest shareholder with a 30%
equity stake.

The negative outlook reflects the company's challenging earnings
prospects in light of the ongoing economic downturn, as well as
its currently tight liquidity position as it faces both currency
exposures under its derivative contracts and refinancing risk.
Ratings could be downgraded if liquidity tightened further; for
example if free cash flow turned negative or additional margin
calls occurred should the peso continue to depreciate, or if
Debt/EBITDA surpassed 5.0 times.  A material increase of the non-
guarantor subsidiaries' share of consolidated cash flow or a
greater reliance on secured debt could affect the rating of the
2011 notes.  The outlook could stabilize if liquidity improved,
with near-term debt maturities and currency exposures reducing at
the same time that performance and credit metrics remained stable
or strengthened.

The last rating action on Posadas was a review for possible
downgrade of the company's Ba3 ratings on October 23, 2008.

Grupo Posadas, S.A.B. de C.V., headquartered in Mexico City, is a
leading hotel chain operator in Latin America, with MXN6,780
million (US$638 million) in revenues for the 12 months ended
September 30, 2008, and about 107 hotels and 19,357 rooms in
operation.  Posadas' revenues mainly derive from Mexico, where it
operates its key 5 and 4-star Fiesta Americana and Fiesta Inn
formats, a 3-star format and a growing time share business.
Posadas is also present in Brazil, Argentina, Chile through its
Caesar Park and Caesar Business brands and has a small operation
in Texas.


HOME INTERIORS: Jan. 15 Auction for U.S. and Mexico Assets Set
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Texas has
approved the bid procedures for the sale of:

a) certain of Home Interiors & Gifts, Inc. and its wholly owned
    debtor and debtor-in-possession subsidiaries' domestic
    assets;

c) the capital stock of Domistyle, Inc. and certain other
    assets; and

b) the capital stock of Home Interiors de Mexico, S de RL de CV,
    and Home Interiors Services de MEXICO, S.A. de C.V. and
    certain other assets;

a) certain of the assets of Laredo Candle Company, LLC;

Interested parties are invited to submit their bids not later than
5:00 p.m. (CDT) on Jan. 8, 2009.  If the Debtors receive
Qualifying Bids, the Court has set a public auction sale on
Jan. 15, 2009.

Pursuant to the approved bid procedures, the Stalking Horse
Bidder, if one is designated, shall be entitled to a Break-Up Fee
of 3% of the Stalking Horse Bid amount, should the Purchaser be an
entity other than the designated Stalking Bidder, and that entity
consummates the sale of the Assets at Closing.

The Break-Up Fee is to be paid by the eventual Purchaser.

                      About Home Interiors

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

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

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


HOME INTERIORS: May Use Cash Collateral Until February 28
---------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Texas
authorized Home Interiors & Gifts, Inc. and its debtor-affiliates
to use Cash Collateral securing their obligations to their lenders
on a final basis for the period of Nov. 1, 2008, through Feb. 28,
2009, in accordance with a budget.

As reported in the Troubled Company Reporter on Oct. 21, 2008, on
July 3, 2008, the Court issued its First Final Cash Collateral
Order authorizing Debtors' use of Cash Collateral through and
including Oct. 31, 2008.

The Debtors told the Court that they require the use of Cash
Collateral on a final basis to continue their business operations,
and to sell their assets pursuant to the processes approved by the
Court.

As adequate protection for the amount of any diminution in value
in the prepetition collateral resulting from the Debtors' use of
Cash Collateral, the prepetition lenders are granted a
superpriority adequate protection claim over any and all expenses,
and valid, binding, enforceable and perfected liens in all assets
of the Debtors and the Debtors' actions for preferences,
fraudulent conveyances, and other avoidance power claims and
recoveries, subject only to a Carve-Out for the payment of accrued
professional fees and expenses by the estate professionals, any
allowed professional fees and expenses that are accrued and unpaid
as of the Termination Date, fees required to be paid pursuant to
Title 28 (Judiciary and Judicial Procedure) Sec. 1930(a)(6) of the
U.S. Code, fees for noticing and claims agents or amounts due to
the ClerK of the Bankruptcy Court, and in the event the cases are
converted to Chapter 7, a separate carve-out of US$20,000 for fees
and expenses of a Chapter 7 trustee.

                      About Home Interiors

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

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

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


HOME INTERIORS: Court Approves Appointment of Chapter 11 Trustee
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Texas has
approved the appointment of a chapter 11 trustee in Home Interiors
and its affiliated debtors' bankruptcy cases.

The chapter 11 trustee is granted all powers, obligations and
authority permitted under all applicable provisions of the
Bankruptcy Code except as to alleged claims to be pursued by the
Official Committee of Unsecured Creditors, and claims asserted by
certain "minority lenders."

The order is without prejudice to granting the chapter 11 trustee
with all powers, obligations and authority over the Alleged Claims
at a later date.

                      About Home Interiors

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

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

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


HOME INTERIORS: Obtains Go Signal to Sell Surplus Inventory
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Texas
approved the sale of Home Interiors & Gifts, Inc. and its
affiliated debtors and debtors-in-possession subsidiaries' surplus
inventory through Hilco Merchant Resources, LLC, the Debtors'
asset disposition agent.

The Debtors will pay any ad valorem property taxes due from the
sale proceeds as those funds become available.

As reported in the Troubled Company Reporter on Nov. 19, 2008, the
Court the Debtors to employ Hilco Merchant Resources, LLC as their
asset disposition agent, nunc pro tunc to Oct. 21, 2008.

As the Debtors' asset disposition agent, Hilco will assist in the
preparation, marketing, and disposition of inventory pursuant to
its Asset Disposition Agreement with the Debtors.  Hilco will also
negotiate the terms of sales of the designated inventory in whole
or in part, and implement any such agreements with purchasers.

                      About Home Interiors

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

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

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



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

PILGRIM'S PRIDE: U.S. Trustee Appoints 9-Member Creditors Panel
---------------------------------------------------------------
William T. Neary, the United States Trustee for Region 7,
appoints nine members to the Official Committee of Unsecured
Creditors in the Chapter 11 cases of Pilgrim's Pride Corp. and
its debtor affiliates.

The Creditors' Committee members are:

  (1) Ala Trade Foods, LLC
      Attn: Davis Lee
      725 Blount Avenue
      Guntersville, AL 35976
      Tel No.: (256) 571-9696
      Fax No.: (256) 571-9977
      E-mail: pyacey@alatrade.com

  (2) The Bank of New York Mellon Trust
      Attn: J. Chris Matthews
      601 Travis 16th Floor
      Houston, TX 77002
      Tel No.: (713) 483-6267
      Fax No.: (713) 483-6979
      E-mail: j.chris.matthews@bnymellon.com

  (3) Calamos Advisors LLC
      Attn: John Krasucki
      2020 Calamos Court
      Naperville, IL 60563
      Tel No.: (630) 245-7215
      Fax No.: (630) 245-7522
      E-mail: jkrasucki@calamos.com

  (4) HSBC Bank USA, National Association
      Attn: Sandra E. Horwitz
      10 East 40th Street, 14th Floor
      New York, NY 10016-0200
      Tel No.: (212) 525-1358
      Fax No.: (212) 525-1366
      E-mail: Sandra.e.horwitz@us.hsbc.com

  (5) International Paper Company
      Attn: Ronald Borcky
      4049 Willow Lake Blvd.
      Memphis, TN 38118
      Tel No.: (901) 419-1295
      Fax No.: (901) 419-1235

  (6) Kornitzer Capital Management/Great Plains Trust
      Company/Buffalo Funds
      Attn: John C. Kornitzer
      P.O. Box 918
      Shawnee Mission, KS 66201
      Tel No.: (913) 384-4339
      Fax No.: (913) 754-1530
      E-mail: john@buffalofunds.com

  (7) Newly Weds Foods, Inc.
      Attn: Brian Toth
      4140 West Fullerton Avenue
      Chicago, IL 60639
      Tel No.: (773) 292-7647
      Fax No.: (773) 292-2423
      E-mail: mlopez@newlywedsfoods.com

  (8) Oaktree Capital Management, L.P.
      Attn: Frances Nelson
      333 S. Grand Avenue
      28th Floor
      Los Angeles, CA 90071
      Tel No.: (213) 830-6467
      Fax No.: (213) 830-8567
      E-mail: fnelson@oaktreecapital.com

  (9) Pension Benefit Guaranty Corp.
      Attn: Marc Pfeuffer
      1200 K Street NW
      Washington, DC 20009
      Tel No.: (202) 326-4020 x 4903
      Fax No.: (202) 326-4112
      E-mail: Pfeuffer.marc@pbgc.gov

Pursuant to Section 1103 of the Bankruptcy Code, the Creditors
Committee may:

  -- consult with the Debtors concerning the administration of
     the bankruptcy cases;

  -- investigate the acts, conduct, assets, liabilities, and
     financial condition of the Debtors, the operation of the
     Debtors' business and the desirability of the continuance
     of the business, and any other matter relevant to the case
     or to the formulation of a plan of reorganization for the
     Debtors;

  -- participate in the formulation of a plan, advise its
     constituents regarding the Committee's determinations as
     to any plan formulated, and collect and file with the
     Court acceptances or rejections of the plan;

  -- request the appointment of a trustee or examiner; and

  -- perform other services as are in the interest of its
     constituents.

The Creditors Committee may retain counsel, accountants, or other
agents, to represent or perform services for the group.

Headquartered in Pittsburgh, Texas, Pilgrim's Pride Corporation
(NYSE: PPC) -- http://www.pilgrimspride.com/-- produces,
distributes and markets poultry processed products through
retailers, foodservice distributors and restaurants in the U.S.,
Mexico and in Puerto Rico.  In addition, the company owns 34
processing plants in the United States and 3 processing plants
n Mexico.  The processing plants are supported by 42 hatcheries,
31 feed mills and 12 rendering plants in the United States and 7
hatcheries, 4 feed mills and 2 rendering plants in Mexico.
Moreover, the company owns 12 prepared food production facilities
in the United States.  The company employs about 40,000
people and has major operations in Texas, Alabama, Arkansas,
Georgia, Kentucky, Louisiana, North Carolina, Pennsylvania,
Tennessee, Virginia, West Virginia, Mexico and Puerto Rico, with
other facilities in Arizona, Florida, Iowa, Mississippi and Utah.

Pilgrim's Pride Corporation and six other affiliates filed Chapter
11 petitions on December 1, 2008 (Bankr. N. D. of Texas, Lead Case
No. 08-45664).  Pilgrim's Pride has engaged Stephen A. Youngman,
Esq., Martin A. Sosland, Esq., and Gary T. Holzer, Esq., at Weil,
Gotshal & Manges LLP, as bankruptcy counsel.  The Debtors have
also tapped Baker & McKenzie LLP as special counsel.  Lazard
Freres & Co., LLC is the company's investment bankers and William
K. Snyder of CRG Partners Group LLC as chief restructuring
officer.  The company's claims and noticing agent is Kurtzman
Carson Consulting LLC. Pilgrim's Pride had total assets of
US$3,847,185,000, and debts ofUS$2,700,139,000 as of June 28,
2008.

William T. Neary, United States Trustee for Region 7, will
convene a meeting of creditors of Pilgrim's Pride Corporation and
its affiliates on January 30, 2009, at 4:00 p.m., at Room  976,
at 1100 Commerce Street, in Dallas, Texas.

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



===============
X X X X X X X X
===============

* Former Chrysler Chief Opposes Ouster of Big 3 CEOs
----------------------------------------------------
Mike Spector posted on The Wall Street Journal blog that former
Chrysler LLC chairperson and chief executive Lee Iacocca doesn't
agree with calls from the Congress that CEOs of Chrysler, Ford
Motor Co., and General Motors Corp. be laid off as a condition of
a government financial bailout.  According to the blog,
Mr. Iacocca had persuaded the Congress to extend Chrysler about
$1.5 billion in loans in 1979, and those loans had been paid back,
with interest.  According to Mr. Spector, Mr. Iacocca was also
president of Ford Motor.

Mr. Iacocca said in a statement, "Having been there, I do not
agree with the sentiment now coming out of Congress that the
management should be changed as a condition of granting loans to
the Detroit auto makers.  "You don't change coaches in the middle
of the game, especially when things are so volatile . . . . The
industry has been brutalized by a totally unpredictable series of
events over which it had little control and that is beating it
unmercifully into the ground.  The companies may not be perfect
but the guys who are running them now are the only ones with the
experience and the in-depth knowledge and understanding of how the
car business really works.  They're by far the best shot we have
for success.  I say give them their marching orders and then let
them march.  They're the right people to get the job done."

Corey Boles posted on the WSJ blog that a senior congressional
aide said on Monday that the CEOs of Ford Motor, Chrysler, and GM
wouldn't lose their jobs as part of a government bailout.  A
proposal, says Mr. Boles, is being considered that would require
the firms to hire separate chairpersons to oversee management.

            GM Seeks Workers' Support for CEO

John D. Stoll and Sharon Terlep posted in the WSJ blog that GM
officials sent salaried engineers an e-mail on Tuesday asking them
to sign on to a letter asking that CEO Rick Wagoner and other
managers stay at the company.

Mr. Stoll and Ms. Terlep say that the letter would be sent to Sen.
Christopher J. Dodd and the Senate Banking Finance Committee.
According to the blog, Sen. Dodd's committee wqould vote this week
on aUS$15 billion bailout package for GM, Ford Motor Co. and
Chrysler LLC.  The blog says that Sen. Dodd suggested on Sunday
that Mr. Wagoner step aside.

Mr. Stoll and Ms. Terlep quoted GM spokesperson Tom Wilkinson as
saying, "There is generally a lot of support for Rick among
employees at GM."  The lobbying effort wasn't initiated by Mr.
Wagoner or other ranking executives, the blog states, citing Mr.
Wilkinson.

           Bailout Has Lukewarm Support From Public

Easha Anand at WSJ reports that the lukewarm support that GM, Ford
Motor, and Chrysler's government loan request gets from the public
reflects the situation in the Congress.

According to WSJ, the requested government bailout has backers in
the Congress, but few "champions."

A new Wall Street Journal/NBC News poll, conducted from Dec. 5 to
Dec. 8 and which had a margin of error of plus or minus three
percentage points, indicates that about 46% of U.S. citizens
approve of giving aid to the three auto companies, while about 42%
disapprove.

"It would be nice to bail them out, but you have to take into
consideration what auto workers and executives have been paid for
years.  The country seems to be spending money they do not have,
we're going further and further into debt," WSJ quoted Philip
Hall, a 56-year-old mason who drives a GMC truck, as saying.

Josh Mitchell at WSJ relates that while the White House and top
Democrats have reached an agreement on the principles of aUS$15
billion short-term aid package to the automakers, Republicans are
torn between the need to bail out those companies and opposition
based on fiscal principles.  According to the report, rank-and-
file Democrats said they are in favor of a bailout, while some
conservative Republicans are against any package that didn't
include the firms' bankruptcy filing.

WSJ reports that Senate Majority Leader Harry Reid said he hoped
for a vote by Wednesday on the legislative proposals for the
bailout.  Among the conditions in the bailout is that the
government would acquire a stake in the companies.

          Congressman Opposes Bailout for Chrysler

Greg Hitt at WSJ reports that Congressman Steve Kagen has opposed
a bailout for Chrysler LLC, arguing that a take over by parent
company Cerberus Capital Management LP of NewPage Corp. led to
closures of two factories in Northeast Wisconsin, eliminating 750
jobs, Alex P. Kellogg at WSJ states.

WSJ relates that Chrysler CEO Robert Nardelli was also questioned
during congressional hearings last week on why he doesn't seek
help from Cerberus Capital.  Mr. Nardelli, according to the
report, said that he already did but was turned down.  Mr. Kagen
urged Cerberus Capital to put some of its "billions of dollars in
assets" on the table before Congress offers Chrysler any kind of
bailout, the report says.

According to WSJ, Mr. Kagen suggested that Cerberus Capital could
sell the mills it closed in Wisconsin and use that money to boost
Chrysler.  "If Cerberus truly believes Chrysler is a good
investment, then Cerberus should put up some of their own money.
The question is... why are you coming to taxpayers if it's not
such a good deal?"

Mr. Kagen supports a bailout for General Motors Corp. and Ford
Motor Co., WSJ reports.


                            ***********

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, Marites O. Claro, Joy
A. Agravente, Pius Xerxes V. Tovilla, Rousel Elaine C. Tumanda,
Valerie C. Udtuhan, Frauline S. Abangan, and Peter A. Chapman,
Editors.


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

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

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

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


           * * * End of Transmission * * *