TCRLA_Public/081217.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 17, 2008, Vol. 9, No. 250

                            Headlines

A R G E N T I N A

AES CORP: Edelap to Invest US$86 Million in Argentina
COMPANIA DE CHARLY: Proofs of Claim Verification Due on Feb. 26
COOPERATIVA BUENOS: Proofs of Claim Verification Due on March 25
EL RESGUARDO: Trustee Verifying Proofs of Claim Until Feb. 26
MINERA PATAGONIA: Trustee Verifying Proofs of Claim Until April 22

* ARGENTINA: To Increase Stimulus Spending to 111 Billion Pesos


B A H A M A S

ISLE OF CAPRI CASINOS: Hires Senior VPs to Lead New Brands


B E R M U D A

BLUEPOINT RE: Appoints McKenna as Liquidator
DIAPASON LABARUM: Creditors' Proofs of Debt Due on January 9
DIAPASON LABARUM: Members' Final Meeting Set for January 12
SYNCORA HOLDINGS: NYSE Suspends Common Stock Trading on Dec. 17


B R A Z I L

BRASIL TELECOM: Inks Demand Movies Deal With Warner Brothers
CAMAGRO CORREA: Toshiba Corp. Acquires Unit's Stake
CSN: To Let 2,500 Workers Take 20-Day Leave as Orders Decline
CSN: Shareholders' Extraordinary Meeting Set on December 19
GENERAL MOTORS: Lets GMAC Defer US$1.5B Payment Until Dec. 30

* BRAZIL: May Cut Interest Rate in January, Morgan Stanley Says


C A Y M A N  I S L A N D S

AGAVE OFFSHORE: Creditors' Proofs of Debt Due on December 24
AL-DEARA DEVELOPMENT: Commences Liquidation Proceedings
AL-DERWAZA DEVELOPMENT: Commences Liquidation Proceedings
ARLO VI: Moody's Downgrades Ratings on Two Note Classes
ARLO VI: Moody's Downgrades Ratings on Five Classes of Notes

BARTHOLOMEW CAYMAN: Creditors' Proofs of Debt Due on December 24
CGP CAPITAL: Creditors' Proofs of Debt Due on December 24
CGP FUND: Creditors' Proofs of Debt Due on December 24
CHINA PROPERTIES: Moody's Cuts Ratings to B2; Outlook Stable
E & T GLOBAL: Creditors' Proofs of Debt Due on December 29

EIFFEL CDO: Moody's Downgrades US$5 Million Tranche A2 Notes to B2
EMPYREAN FINANCE: Moody's Downgrades Ratings on Three Note Classes
ENSHA DEVELOPMENT: Commences Liquidation Proceedings
FAIR HAVEN: Commences Liquidation Proceedings
GOLDMAN SACHS ALPHA: Creditors' Proofs of Debt Due on December 24

GOLDMAN SACHS LIQUID: Creditors' Proofs of Debt Due on December 24
GOLDMAN SACHS NORTH: Creditors' Proofs of Debt Due on December 24
GOLDMAN SACHS QUANTITATIVE: Proofs of Debt Due on Dec 24
INVICTA LIQUIDFUNDS: Creditors' Proofs of Debt Due on December 29
INVICTA LIQUIDFUNDS: Creditors' Proofs of Debt Due on December 29

MIDTOWN ALPHA: Creditors' Proofs of Debt Due on December 29
QIBLAH PROPERTY: Commences Liquidation Proceedings
SHARQ PROPERTY: Commences Liquidation Proceedings
SHIMAO PROPERTY: Moody's Cuts CFR to Ba3; Outlook Negative
SION HALL: Creditors' Proofs of Debt Due on December 24

* INSOL Names Graduates of Insolvency Course


C H I L E

RIO TINTO GROUP: BHP Plans to Buy Escondida Mine Stake


C O S T A  R I C A

ALCATEL-LUCENT: To Cut 1,000 Management Jobs & 5,000 Contractors


E C U A D O R

* ECUADOR:Fitch Downgrades Long-Term IDR to 'RD' From 'CCC'


H A I T I

* HAITI: IDB to Double Financial Aid to US$100 Million


M E X I C O

CORPORACION DURANGO: U.S. Court Cedes to Mexico Main Proceeding
KEY PLASTICS: Financial Woes Cue Chapter 11; Files Prepack Plan
KEY PLASTICS: Case Summary & 30 Largest Unsecured Creditors
LAIRD PLC: To Cut Global Workforce by 40%, Shutter 3 U.S. Plants


P U E R T O  R I C O

HEALTHSOUTH CORP: 3 Executives Acquire 34,900 Shares
HEALTHSOUTH CORP: Executives Buy Shares of Stock, Disclose Stake
PILGRIM'S PRIDE: Incurs US$1.06B Operating Loss for FY2008
PILGRIM'S PRIDE: Seeks to Pay Amounts Owed to Employees
SIMMONS BEDDING: Lenders Extend Forbearance Period to March 2009


V E N E Z U E L A

*VENEZUELA: Fitch Lowers Issuer Default Ratings to 'B+'
* VENEZUELA: Flying V Interested in Oil


X X X X X X X X

* GM & Chrysler Default Risk Hinges on Government Action, S&P Says


                         - - - - -


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


AES CORP: Edelap to Invest US$86 Million in Argentina
-----------------------------------------------------
AES Corporation's unit, Edelap, said it will invest US$86 million
in Argentina over the next five years, Lucas Bergman of Reuters
reports.

Edelap, the report relates, said the investment plan includes
upgrading high-tension power lines and the building of 300
kilometers of new power lines.  "The results of the plan will be
the definitive answer to the region's needs," Edelap was quoted by
Reuters as saying.

As reported by the Troubled Company Reporter - Latin America on
Dec. 11, 2008, Reuters said Edelap 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.

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 Edelap

Empresa Distribuidora La Plata SA (EDELAP) --
http://www.edelap.com.ar/ -- is an Argentinean company engaged in
the production and distribution of electrical energy.  The Company
operates in Buenos Aires provinces: La Plata, Magdalena, Berisso,
Ensenada, Coronel Brandsen and Punto Indio. EDELAP is a subsidiary
of Inversora AES Americas Holding Espana. The Company is
headrquartered in Buenos Aires, Argentina.

                     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, Probability of
Default Rating at B1, senior secured credit facilities at Ba1,
second priority senior secured notes at Ba3, senior
unsecured notes at B1 and its trust preferred securities at B3.
Moody's said the rating outlook for AES is stable.


COMPANIA DE CHARLY: Proofs of Claim Verification Due on Feb. 26
---------------------------------------------------------------
Estudio Covini, the court-appointed trustee for Compania de Charly
SA's reorganization proceedings, will be verifying creditors'
proofs of claim until February 26, 2009.

Creditors will vote to ratify the completed settlement plan
during the assembly on December 3, 2009.


COOPERATIVA BUENOS: Proofs of Claim Verification Due on March 25
----------------------------------------------------------------
The court-appointed trustee for Cooperativa Buenos Ayres de
Vivienda Credito y Consumo Ltda.'s reorganization proceedings,
will be verifying creditors' proofs of claim until March 25, 2009.

The trustee will present the validated claims in court as
individual reports on May 7, 2009.  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 the
company and its creditors.

A general report that contains an audit of the company's
accounting and banking records will be submitted in court on
June 19, 2009.

Creditors will vote to ratify the completed settlement plan
during the assembly on November 27, 2009.


EL RESGUARDO: Trustee Verifying Proofs of Claim Until Feb. 26
-------------------------------------------------------------
Jose Obes, the court-appointed trustee for El Resguardo de las
Estancias SA's bankruptcy proceedings will be verifying creditors'
proofs of claim until February 26, 2009.


MINERA PATAGONIA: Trustee Verifying Proofs of Claim Until April 22
------------------------------------------------------------------
The court-appointed trustee for Minera Patagonia SA's bankruptcy
proceedings will be verifying creditors' proofs of claim until
April 22, 2009.

The Debtor can be reached at:

          Minera Patagonia SA
          M. T. de Alvear 624
          Buenos Aires, Argentina



* ARGENTINA: To Increase Stimulus Spending to 111 Billion Pesos
---------------------------------------------------------------
Argentina will increase spending on a stimulus package to 111
billion pesos (US$32 billion), up from the previous 71 billion-
peso plan, aiming to help boost the economy amid the global
financial crisis, Bill Faries of Bloomberg News reports.

According to the report, Jose Lopez, public works secretary, said
the country will seek to boost spending on public works, about 57
billion pesos of the stimulus package will be spent next year on
projects ranging from schools to highways.

“Through this investment we want to generate a strong anti-
cyclical reaction that will allow us to create more jobs, boost
activity throughout the construction sector and give a better
quality of life to our people,” Bloomberg News quoted Mr. Lopez as
saying.

Bloomberg News relates the increase in public works spending is
the latest effort by the government to resuscitate an economy that
Morgan Stanley says is showing signs of “sharp decline.”

As reported by the Troubled Company Reporter - Latin America on
Dec. 8, 2008, Bloomberg News said Argentine President Cristina
Fernandez de Kirchner unveiled a ARS13.2 billion (US$3.9 billion)
plan to spur the country's consumption and exports in a bid to
counter the effects of the global financial crisis.

In that report, President Fernandez said the government will fund
reduced-interest loans for consumers and companies, as well as
make export financing cheaper.  She also announced a five
percentage-point cut in export taxes on wheat and corn, and said
further reductions are possible.  The announcement, the same
report related, comes as Argentina's economy shows signs that it's
reaching the end of almost six years of 8.5% annual growth.

UBS Pactual economist Javier Kulesz said in a report obtained by
Bloomberg News that Argentina's economy will shrink 1% in the
fourth quarter this year and will grow 0.3% in 2009.

Bloomberg News discloses Mr. Lopez said the country has financing
for 71 billion pesos of the plan and that the government “is
working to obtain” the other 40 billion pesos.

President Fernandez, Bloomberg News notes, said the plan will
raise employment in the construction industry to 780,000 people
from 400,000 people.  She also announced an additional one-time
payment of 200 pesos to retirees this month, the report adds.



=============
B A H A M A S
=============

ISLE OF CAPRI CASINOS: Hires Senior VPs to Lead New Brands
----------------------------------------------------------
Isle of Capri Casinos Inc. has appointed Roger Deaton as senior
vice president of the company's Lady Luck brand and Arnold Block
has been named senior vice president of the company's Isle brand.
The appointments have been made to align the corporate structure
of the Company with the strategic plan that creates an overall two
brand strategy by introducing Isle and Lady Luck, two distinct
gaming experiences.  Both Deaton and Block will report to
president and chief operating officer Virginia McDowell.

Mr. Deaton is a veteran to Isle of Capri Casinos Inc. joining the
Company at its inception in 1992, serving in a variety of roles
including regional vice president, as well as vice president and
general manager of the company's properties in Vicksburg,
Mississippi and Lake Charles, Louisiana.  Mr. Deaton began his
gaming career in Lake Tahoe before moving to Atlantic City as part
of the original Resort's International team.

Mr. Block joins the company from Harrah's Entertainment, where he
most recently served as general manager of their St. Louis
operation.  Under his leadership, the property rose to become the
market leader prior to his retirement from Harrah's earlier in
2008.  Prior to joining Harrah's, Block worked in a variety of
leadership capacities for Argosy Gaming company, including serving
as regional vice president and as general manager of the company's
flagship property in Lawrenceburg, Indiana.  Additionally,
Mr. Block has previously served as the executive director of the
Alton Visitors and Convention Bureau.

Commenting on the appointments, Ms. McDowell said, "Both Roger and
Arnie bring extensive gaming backgrounds to their new roles.
Roger's commitment to building experiences that drive customer
satisfaction has been consistently demonstrated during his career
at Isle, and I'm confident that he is exactly the right person to
lead the Lady Luck brand.  Arnie's entrepreneurial spirit and
focus on operational excellence are a perfect match for our
revamped Isle brand, and are evidenced in both his record of
excellence in the gaming industry as well as his background as a
former owner and operator restauranteur and tourism executive.
Under their leadership, our re-branded Isle and Lady Luck casinos
will offer completely focused, clearly defined entertainment
experiences while sharing a common goal -- an experience that is
consistently clean, safe, friendly and fun."

Lady Luck has been reintroduced as the brand for the company's
facilities serving local markets, with construction on the first
Lady Luck branded properties approaching completion in
Caruthersville, Missouri and Marquette, Iowa.  The Isle brand has
been designed to feature regional facilities with hotel rooms and
convention facilities designed for both business and leisure
travelers, with upgraded amenities, all of which complement the
Company's casino product.

                       About Capri Casinos

Based in Biloxi, Mississippi and founded in 1992, Isle of Capri
Casinos Inc. (Nasdaq: ISLE) -- http://www.islecorp.com/-- owns
and operates casinos in Biloxi, Lula and Natchez, Mississippi;
Lake Charles, Louisiana; Bettendorf, Davenport and Marquette,
Iowa; Kansas City and Boonville, Missouri and a casino and
harness track in Pompano Beach, Florida.  The company also
operates and has a 57 percent ownership interest in two casinos
in Black Hawk, Colorado.

Isle of Capri Casinos' international gaming interests include a
casino that it operates in Freeport, Grand Bahama in The Bahamas
and a two-thirds ownership interest in casinos in Dudley and
Wolverhampton, England.

                          *     *     *

As reported by the Troubled Company Reporter - Latin America on
March 11, 2008, Standard & Poor's Ratings Service placed its
ratings for Isle of Capri Casinos Inc., including the 'BB-'
corporate credit rating, on CreditWatch with negative
implications.



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

BLUEPOINT RE: Appoints McKenna as Liquidator
--------------------------------------------
On December 4, 2008, the Supreme Court of Bermuda appointed John
C. McKenna as liquidator of BluePoint Re Limited to act with a
committee of inspection.


DIAPASON LABARUM: Creditors' Proofs of Debt Due on January 9
------------------------------------------------------------
The creditors of Diapason Labarum Raw Materials Fund Limited are
required to file their proofs of debt by January 9, 2008, to be
included in the company's dividend distribution.

The company commenced liquidation proceedings on Dec. 4, 2008.

The company's liquidator is:

          Roderick Forrest
          Chancery Hall, 52 Reid Street
          Hamilton HM 12
          Islands of Bermuda


DIAPASON LABARUM: Members' Final Meeting Set for January 12
-----------------------------------------------------------
The members of Diapason Labarum Raw Materials Fund Limited will
hold their final meeting on January 12, 2009, at 10:00 a.m., to
hear the liquidator's report on the company's wind-up proceedings
and property disposal.

The company commenced liquidation proceedings on Dec. 4, 2008.

The company's liquidator is:

          Roderick Forrest
          Chancery Hall, 52 Reid Street
          Hamilton HM 12
          Islands of Bermuda


SYNCORA HOLDINGS: NYSE Suspends Common Stock Trading on Dec. 17
---------------------------------------------------------------
Syncora Holdings Ltd. was notified by the NYSE Regulation, Inc.,
that as a result of the company's common shares no longer meeting
the New York Stock Exchange continued listing standards, the NYSE
will suspend trading of Syncora's common stock effective on the
NYSE's opening on Dec. 17, 2008.  Syncora does not intend to
appeal the NYSE's decision at this time and, consequently, it is
expected that the common stock will be delisted following the
NYSE's application to the Securities and Exchange Commission.

In particular, Syncora has been advised that its shares are out of
compliance with two of the NYSE's continued listing standards:

  i) maintaining an average market capitalization of not less
     than US$75 million over a consecutive 30 trading-day period
     and a stockholders' equity of not less than US$75 million;
     and

ii) maintaining an average closing price of not less than US$1.00
     over a consecutive 30 trading-day period.

The company expects that its common stock will be quoted on the
Financial Industry Regulatory Authority's over-the-counter
bulletin board and on the Pink Sheets Inc.'s Pink Quote System.  A
new ticker symbol will be assigned on the day trading is suspended
from the NYSE.

The delisting from the NYSE does not represent any change in the
company's current strategic plan, in the negotiations with the
financial counterparties or in the involvement by the New York
State Insurance Department in the company's operations.

                   About Syncora Holdings Ltd.

Based in Hamilton, Bermuda, Syncora Holdings Ltd. (NYSE: SCA) --
http://www.syncora.com/-- fka Security Capital Assurance Ltd.
is a monoline financial guarantee insurance provider, and Syncora
Guarantee Re Ltd. (formerly XL Financial Assurance Ltd.), a
monoline provider of reinsurance to financial guarantee insurers
that provides credit enhancement for the obligations of debt
issuers worldwide.

                       Going Concern Doubt

In the opinion of the company, the principal factors which affect
the company's ability to continue as a going concern are: (i) its
ability to successfully reach agreements with Financial
Counterparties and other parties to commute, terminate or
restructure the company's CDS contracts and policies on terms
satisfactory to the company, well as to address the company's
public finance business to the satisfaction of the New York
Superintendent of Insurance, (ii) the risk of adverse loss
development on its remaining in-force business not so commuted,
terminated or restructured (particularly in regard to its exposure
to residential mortgages) that would cause it not to be in
compliance with its US$65 million minimum policyholders' surplus
requirement under New York state law, and (iii) the risk of
intervention by the NYID as a result of the financial condition of
Syncora Guarantee.

As a result of uncertainties associated with these factors
affecting the company's ability to continue as a going concern,
management has concluded that there is substantial doubt about the
ability of the company to continue as a going concern.



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


BRASIL TELECOM: Inks Demand Movies Deal With Warner Brothers
------------------------------------------------------------
Brasil Telecom Participacoes SA signed a deal with Warner Brothers
to offer a number of Warner's films through its VOD service
'Videon', IPTV News reports.

The agreement, the report relates, covers latest releases from the
Warner Brothers catalogue as well as over 200 classic titles.

According to the report, Brasil Telecom is believed to be waiting
for Bill 29 to be passed by the Brazilian government before it can
launch linear programming on its IPTV service.

"We hope that business grows with next years' changes," Carlos
Sanchez, Executive Director of Warner for Latin America, was
quoted by the report as saying.  "We are focused on moving forward
with this newly started strategy.  We are proud of working with
BrT.  The new agreement with BrT is a "new learning curve for both
companies," he said.

Sebastiao Nacimento, BrT's network engineering director, said the
company is preparing to expand the availability of its IPTV
service beyond the capital of Brasilia to nine states shortly, as
well as increase the availability of its powerline networking
solution shortly, the report reveals.

The Sebastiao Nacimento is also planning to offer HD services and
rollout fibre-to-the-home services at some point in the future,
IPTV News adds.

                      About Brasil Telecom

Headquartered in Brasilia, Brazil, Brasil Telecom Participacoes
SA -- http://www.brasiltelecom.com.br-- is a holding company
involved in the telecommunications sector.  Its main activity is
the management of Brasil Telecom SA (BrT), which operates a
local fixed-line telephone in Brazil.  BrT also provides data
and voice, broadband and Internet services.  It also owns Nova
Tarrafa Participacoes Ltda and Nova Tarrafa Inc., which provide
Internet services.

                         *     *     *

In April 2008, Moody's Investors Service placed Brasil Telecom
Participacoes S.A.'s Ba1 rating on review for possible upgrade
after the announced acquisition by Tele Norte Leste
Participacoes S.A.


CAMAGRO CORREA: Toshiba Corp. Acquires Unit's Stake
---------------------------------------------------
Toshiba Corporation has acquired Camargo Correa Equipamentos e
Sistemas S.A. (CCES), a unit of Camargo Correa SA, which
manufactures and sells air insulated switchgear (AIS) and provides
full turnkey construction of AIS substations, from Construçoes e
Comercio Camargo Correa S.A. (CCCC).

Negotiations between Toshiba Corp. and Camargo Correa SA commenced
at the beginning of the year and culminated in the December 1
closing of the transaction.  The acquisition will allow Toshiba to
enter the Brazilian AIS market, advancing Toshiba's strategy of
reinforcing and expanding its T&D systems business in the global
market.

In Brazil, Toshiba already manufactures transformers at Toshiba
Transmission and Distribution of Brazil Ltd. (TTDB), in Minas
Gerais.  Combining Toshiba's T&D technologies, including TTDB's
highly competitive and reliable manufacturing capabilities in
transformers, with CCES' capabilities will allow Toshiba to
significantly enhance its total support to customers in Brazil.

On completion of the acquisition, CCES changed its name to Toshiba
Transmission and Distribution Systems Brazil Ltd. (TSTB).

As construction of power plants continues to expand to meet
growing global demand, investment in T&D systems grows in
parallel.  AIS switchgear predominates in electric power
substations worldwide, and the global AIS substation equipment,
construction and maintenance market is forecast to record annual
growth of 7% and to reach US$26 billion in 2010.  Toshiba is
promoting a proactive strategy of expansion of its T&D business at
the global level in order to meet this growing demand.

                 About Camargo Correa Equipamentos

Based in Curitiba, Parana State, CCES is one of Brazil's largest
manufacturers of AIS and key components, including porcelain gas
circuit breakers and disconnecting switches.  The company is also
active in full turnkey construction of AIS substations.

                       About Camargo Correa

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.


CSN: To Let 2,500 Workers Take 20-Day Leave as Orders Decline
-------------------------------------------------------------
Companhia Siderurgica Nacional S.A. will give 2,500 of its 16,000
workers a 20-day unscheduled vacation owing to falling orders,
John Kolodziejski of Dow Jones Newswires reports, citing local
Estado news agency.

According to the report, Renato Soares Ramos, president of the
steelworkers' union at Volta Redonda, said CSN told him it was
taking the measure because of "a lack of demand."

Three CSN units will be affected by the emergency vacations
between Dec. 20 and Jan. 12, the report says.

Dow Jones Newswires notes two units are in Rio de Janeiro State:
at Volta Redonda, where the company's main steel plant is located;
and Porto Real, where CSN's wholly owned subsidiary steel plant,
GalvaSud, manufactures high value galvanized steel products.  The
third unit is in Sao Paulo State, the report adds.

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

                          *     *     *

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

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


CSN: Shareholders' Extraordinary Meeting Set on December 19
-----------------------------------------------------------
Companhia Siderurgica Nacional S.A. has set its Extraordinary
Shareholders' Meeting on Friday, December 19, 2008, 10:00 a.m., at
Rua Sao Jose nº 20, Grupo 1602, Centro, Rio de Janeiro city.

In the meeting, the shareholders will tackle these agenda:

  -- proposal for the reversal of the total revaluation reserve,
     pursuant to the provisions of Law 11,638/2007; and

  -- CVM Instruction 469/2008

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

                          *     *     *

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

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


GENERAL MOTORS: Lets GMAC Defer US$1.5B Payment Until Dec. 30
-------------------------------------------------------------
GMAC LLC disclosed in a regulatory filing with the Securities and
Exchange Commission that as a result of the change in payment
terms, GMAC will be able to defer payment until Dec. 30, 2008, of
up to US$1.5 billion in cash due to General Motors Corporation.
During the shipping period GM will have a security interest in the
financed vehicles.

On Dec. 9, 2008, GM and GMAC LLC agreed on a temporary basis to
adjust GMAC's terms for making advance payments to GM for
wholesale financing of vehicles sold to GM dealers.  GM typically
has an increase in its inventory levels in advance of the year-end
shut down and this adjustment will help finance purchases of this
inventory.

Ordinarily, GMAC pays GM the invoice amount for a vehicle shipped
by GM to a GMAC financed dealer on the first business day after
the shipping date. Beginning on Dec. 9, 2008, GMAC will be
obligated to pay GM the invoice amount when the amounts are due
from dealers.

As reported by the Troubled Company Reporter on Dec. 11, auto
lender GMAC and its home mortgage-making subsidiary Residential
Capital LLC are negotiating with bondholders over changes in the
exchange offers announced in November.  Less than 25% of the debt
was tendered, according to GMAC.  The company said 75% is required
to complete the transaction and enable becoming a bank holding
company.

                        About GMAC LLC

GMAC LLC -- http://www.gmacfs.com/-- formerly General Motors
Acceptance Corporation, is a global, diversified financial
services company that operates in approximately 40 countries in
automotive finance, real estate finance, insurance and other
commercial businesses.  GMAC was established in 1919 and employs
approximately 26,700 people worldwide.

GMAC Financial Services is in turn wholly owned by GMAC LLC.

Cerberus Capital Management LP led a group of investors that
bought a 51% stake in GMAC LLC from General Motors Corp. in
December 2006 for US$14 billion.

For three months ended Sept. 30, 2008, the company reported net
loss of US$2.5 billion compared to net loss of US$1.5 billion for
the same period in the previous year.

For nine months ended Sept. 30, 2008, the company incurred net
loss of US$5.5 billion compared to US$1.6 billion for the same
period in the previous year.

At Sept. 30, 2008, the company's balance sheet showed total assets
of US$211.3 billion, total liabilities of US$202.0 billion and
members' equity of about US$9.3 billion.

                     About General Motors

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

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

As reported in the Troubled Company Reporter on Nov. 10,
2008, General Motors Corporation's balance sheet at
Sept. 30, 2008, showed total assets of US$110.425 billion, total
liabilities of US$170.3 billion, resulting in a stockholders'
deficit of US$59.9 billion.



* BRAZIL: May Cut Interest Rate in January, Morgan Stanley Says
---------------------------------------------------------------
Brazil's central bank may cut its benchmark interest rate in
January, earlier than previously forecast, to “cushion” the
country from the global credit crisis, Bloomberg News reports,
citing Morgan Stanley.

According to the report, Morgan Stanley said the central bank may
reduce interest rates by 50 basis points at each of its next four
meetings, from the previous forecast of a total of 100 basis
points cut by the end of 2009, beginning in the third quarter.

As reported by the Troubled Company Reporter - Latin America on
December 12, 2008, Bloomberg News said Brazil's central bank
signaled it may be ready to cut interest rate as early as its next
meeting.

In another TCRLA report, Bloomberg News said the central bank
might 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.  Policy makers, led by Central Bank
President Henrique Meirelles, decided to 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 noted.
This has limited banks' ability to cut interest rates.

According to Bloomberg News, Marco Maciel, chief economist at
Banco Pine SA, said the bank may cut borrowing costs at its next
meeting Jan. 21 to sustain an expansion that has stalled in the
face of the global credit crisis.  "It depends on whether the
currency and wholesale inflation settle at a lower level," Mr.
Maciel told Bloomberg in a phone interview.  "A cut is a very big
possibility because the data coming out until then should show an
even more abrupt falloff."

“Recent dovish signs in the wake of Brazil's December monetary
policy meeting lead us to revise our rate forecast,” Bloomberg
News cited Marcelo Carvalho, Morgan Stanley's chief economist for
Brazil, as saying.  “The policy easing seems unlikely to avoid
recession, given powerful global headwinds,” he said.

Morgan Stanley said Brazil is at the start of a technical
recession, which is two consecutive quarters of a contracting
economy, and could see no economic growth next year, the report
notes.

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
==========================

AGAVE OFFSHORE: Creditors' Proofs of Debt Due on December 24
------------------------------------------------------------
The creditors of Agave Offshore Partners 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 March 5, 2008.

The company's liquidator is:

          Douglas Pratt
          Mesa Capital Management LLC
          7052 Whitewater St, Carlsbad
          CA 92011, U.S.A.


AL-DEARA DEVELOPMENT: Commences Liquidation Proceedings
-------------------------------------------------------
On November 8, 2008, the sole shareholder of Al-Deara Development
Investments Ltd. passed a resolution to voluntarily liquidate the
company's business.

The company's liquidators are:

          Waleed Mohammed
          Ali Al-Ghannem
          Kuwait Finance House
          Safat Square
          Junction of Abdulla Al-Mubarak Street and
          Fahd Al-Salem Street, Kuwait City, Kuwait


AL-DERWAZA DEVELOPMENT: Commences Liquidation Proceedings
---------------------------------------------------------
On November 8, 2008, the sole shareholder of Al-Derwaza
Development Finance, Ltd. passed a resolution to voluntarily
liquidate the company's business.

The company's liquidators are:

          Waleed Mohammed
          Ali Al-Ghannem
          Kuwait Finance House
          Safat Square
          Junction of Abdulla Al-Mubarak Street and
          Fahd Al-Salem Street, Kuwait City, Kuwait


ARLO VI: Moody's Downgrades Ratings on Two Note Classes
-------------------------------------------------------
Moody's Investors Service announced it has downgraded its ratings
of two classes of notes issued by Arlo VI Limited.

The transaction is a managed synthetic CDO referencing 125
sovereign and corporate entities.

According to Moody's, the rating actions is are the result of
deterioration in the credit quality of the transaction's reference
portfolio, which includes but is not limited to exposure to Lehman
Brothers Holdings Inc., which filed for protection under Chapter
11 of the U.S. Bankruptcy Code on September 15, 2008; Fannie Mae
and Freddie Mac, which were placed into the conservatorship of the
U.S. government on September 8, 2008; and two Icelandic banks,
specifically Kaupthing Bank hf and Landsbanki Islands hf.  The
transaction also has a significant exposure to other corporate
names which continue to deteriorate in the current economic
environment.  This will weigh on the ratings of the tranches in
this transaction.

Moody's initially analyzed and continues to monitor this
transaction using primarily the methodology and its supplements
for corporate synthetic CDOs as described in Moody's Special
Reports below:

  -- Moody's Approach To Rating Synthetic CDOs (July 2003)

  -- Moody's Approach to Rating Digital Credit Default Swaps (July
     2004)

  -- Moody's Revisits Its Assumptions Regarding Corporate Default
     (and Asset) Correlations for CDOs (November 2004)

  -- Understanding Collateral Risks of Funded Synthetics in CDOs
     (June 2006)

The rating actions are:

Arlo VI Limited:

(1) Series 2006 (Gumbel CDO-A) EUR 100,000,000 Secured Limited
Recourse Credit-Linked Notes due 2013

  -- Current Rating: Ba1
  -- Prior Rating: Aa1
  -- Prior Rating Date: 17 April 2008

(2) Series 2006 (Gumbel CDO-B) EUR 50,000,000 Secured Limited
Recourse Credit-Linked Notes due 2013

  -- Current Rating: B2
  -- Prior Rating: Aa3
  -- Prior Rating Date: 17 April 2008


ARLO VI: Moody's Downgrades Ratings on Five Classes of Notes
------------------------------------------------------------
Moody's Investors Service has downgraded its ratings of six
classes of notes and swaps issued by Arlo VI Limited and ARLO VI
Limited.

These transactions are managed synthetic CDOs referencing the same
portfolio, which consists 100 sovereign and corporate entities.
According to Moody's, the rating actions are the result of
deterioration in the credit quality of the transaction's reference
portfolio, which includes but is not limited to exposure to Lehman
Brothers Holdings Inc., which filed for protection under Chapter
11 of the U.S. Bankruptcy Code on September 15, 2008; Washington
Mutual Inc., which was seized by federal regulators on September
25, 2008 and subsequently virtually all of its assets were sold to
JPMorgan Chase; Fannie Mae and Freddie Mac, which were placed into
the conservatorship of the U.S. government on September 8, 2008;
and an Icelandic bank, Kaupthing Bank hf.  These transactions also
have significant exposures to other corporate names which continue
to deteriorate in the current economic environment.  This will
weigh on the ratings of the tranches in these transactions.

Moody's initially analyzed and continues to monitor this
transaction using primarily the methodology and its supplements
for corporate synthetic CDOs as described in Moody's Special
Reports:

  -- Moody's Approach To Rating Synthetic CDOs (July 2003)

  -- Moody's Approach to Rating Digital Credit Default Swaps (July
     2004)

  -- Moody's Revisits Its Assumptions Regarding Corporate Default
     (and Asset) Correlations for CDOs (November 2004)

  -- Understanding Collateral Risks of Funded Synthetics in CDOs
     (June 2006)

The rating actions are:

ARLO VI Limited:

(1) Series 2006-A-1 (Prima-CDO Long/Short) US$20,000,000 Secured
Limited Recourse Credit-Linked Notes due December 2013

  -- Current Rating: Aa1
  -- Prior Rating: Aaa
  -- Prior Rating Date: 10 May 2006

(2) Series 2006-B-1 (Prima-CDO Long/Short) US$15,000,000 Secured
Limited Recourse Credit-Linked Notes due June 2013

  -- Current Rating: B3
  -- Prior Rating: Aa1
  -- Prior Rating Date: 28 April 2006

(3) Series 2006-C-1 (Prima-CDO Long/Short) US$18,800,000 Secured
Limited Recourse Credit-Linked Notes due June 2013

  -- Current Rating: Caa2
  -- Prior Rating: Aa2
  -- Prior Rating Date: 3 July 2008

(4) Series 2006-C-2 (Prima-CDO Long/Short) US$10,000,000 Secured
Limited Recourse Credit-Linked Notes due June 2013

  -- Current Rating: Caa2
  -- Prior Rating: Aa2
  -- Prior Rating Date: 28 April 2006

ARLO IV Limited:

(1) Series 2006-D-1 (Prima-CDO Long/Short) US$5,000,000 Secured
Limited Recourse Credit-Linked Notes due June 2013

  -- Current Rating: Ca
  -- Prior Rating: A2
  -- Prior Rating Date: 28 April 2006

Barclays Bank PLC:

(1) Barclays Bank PLC Prima-CDO US$50,000,000 Credit Default Swap
terminating in June 2013

  -- Current Rating: Caa3
  -- Prior Rating: A2
  -- Prior Rating Date: 31 May 2006


BARTHOLOMEW CAYMAN: Creditors' Proofs of Debt Due on December 24
----------------------------------------------------------------
The creditors of Bartholomew Cayman 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. 7, 2008.

The company's liquidator is:

          Lucio Velo
          c/o Velo & Associates
          Piazza Riforma 5, CH6901 Lugano 1
          Switzerland


CGP CAPITAL: Creditors' Proofs of Debt Due on December 24
---------------------------------------------------------
The creditors of CGP Capital Gain Perspective 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. 13, 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


CGP FUND: Creditors' Proofs of Debt Due on December 24
------------------------------------------------------
The creditors of CGP Fund Management 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. 13, 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



CHINA PROPERTIES: Moody's Cuts Ratings to B2; Outlook Stable
------------------------------------------------------------
Moody's Investors Service has downgraded the corporate family and
unsecured bond ratings of China Properties Group Limited ("China
Properties") to B2 from B1. The ratings outlook is stable. This
concludes the rating review for downgrade initiated on 25
September 2008.

"The downgrade is driven by Moody's expectation that China
Properties is likely to achieve weaker-than-expected property
sales for 2008 and accordingly post weak cash flow coverage
measures," says Peter Choy, a Moody's Vice President and Senior
Credit Officer, adding "Such an anticipated sales performance
mainly reflects its relatively high concentration on a few select
projects -- as compared to its industry peers -- against the
backdrop of a severe market downturn."

"As indicated, due to its lower property sales, operating cash
flow is expected to weaken materially," says Choy. "Meanwhile the
tight nature of the bank credit market for the property sector has
not improved, translating into a material drop in balance sheet
liquidity."

Nevertheless, the B2 rating is supported by the good quality of
company's project locations, its low debt leverage, as well as
minimal levels of land payments and refinancing pressure in the
next 1-2 years.

The stable outlook reflects the company's near-term adequate
liquidity profile and low debt service requirements. Furthermore,
it has the flexibility to adjust its construction spending
according to the latest developments in demand for its products.

The possibility of a rating upgrade in the near term is limited,
given the challenging character of market conditions. However,
pressure for an upgrade would emerge over time if the company can
(a) demonstrate a track record for achieving its sales targets,
while maintaining its profit margins; (b) secure adequate bank
financing for its projects; (c) successful complete its projects
without cost overruns; and (d) maintain adequate balance sheet
liquidity.

On the other hand, downward rating pressure could emerge if the
company (i) continues to fall short of its target sales; (ii) is
unable to secure bank financing, resulting in delays in its
projects, or (iii) conducts further debt-funded land acquisitions.
Under such scenarios, operating cash flow could stay in a deficit
position and interest coverage could deteriorate with
EBITDA/interest below 1.5 -- 1.8x.

The last rating action was on 25 September 2008 when the ratings
of China Properties were placed under review for possible
downgrade.

The principle methodology applied in rating China Properties is
the rating Methodology on Homebuilding dated December 2004 which
can be found at http://www.moodys.comin the Credit Policy &
Methodologies directory, in the Rating Methodologies subdirectory.

Incorporated in Grand Cayman, China Properties Group Limited was
listed on the Hong Kong Stock Exchange in February 2007 and is
engaged in property investment and development in China.


E & T GLOBAL: Creditors' Proofs of Debt Due on December 29
----------------------------------------------------------
The creditors of E & T Global Fund Inc. 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. 14, 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


EIFFEL CDO: Moody's Downgrades US$5 Million Tranche A2 Notes to B2
------------------------------------------------------------------
Moody's Investors Service has downgraded its rating of one class
of notes issued by Eiffel CDO Ltd.

The transaction is a managed synthetic CDO exposed to a pool of
corporate names. Approximately 40% of the pool is in financial
services.

According to Moody's, the rating actions are the result of
deterioration in the credit quality of the transaction's reference
portfolio, which includes but is not limited to exposure to GMAC
LLC, which was downgraded by Moody's to C on 20 November 2008. The
transaction has a significant exposure to corporate names which
continue to deteriorate in the current economic environment. This
will weigh on the ratings of both transactions.

Moody's initially analyzed and continues to monitor this
transaction using primarily the methodology and its supplements
for corporate synthetic CDOs as described in Moody's Special
Reports.

The rating actions are:

Eiffel CDO Ltd:

The Series 2006-2 USD 5,000,000 Tranche A2 Secured Step Up
Floating Rate Notes due 2013

    Current Rating: B2

    Prior Rating: B1

    Prior Rating Date: 26 November 2008


EMPYREAN FINANCE: Moody's Downgrades Ratings on Three Note Classes
------------------------------------------------------------------
Moody's Investors Service announced it has downgraded its ratings
of three classes of notes issued by Empyrean Finance.

The transaction is a managed synthetic CDO referencing a portfolio
of corporate debt.

According to Moody's, the rating actions are the result of
deterioration in the credit quality of the transaction's reference
portfolio, which includes but is not limited to exposure to Lehman
Brothers Holdings Inc., which filed for protection under Chapter
11 of the U.S. Bankruptcy Code on September 15, 2008, Washington
Mutual Inc., which was seized by federal regulators on September
25, 2008 and subsequently virtually all of its assets were sold to
JPMorgan Chase, Fannie Mae and Freddie Mac, which were placed into
the conservatorship of the U.S. government on September 8, 2008,
Landsbanki Islands hf and Glitnir Banki hf, for each of which a
receivership committee was appointed on October 7, 2008 and
Kaupthing Bank hf, for which a receivership committee was
appointed on October 8, 2008.  The transaction also has a
significant exposure to other corporate names which continue to
deteriorate in the current economic environment.  This will weigh
on the ratings of the tranches in this transaction.

The rating actions are:

Empyrean Finance (Cayman Islands) Limited:

(1) US$55,000,000 Class B-1U7B Senior Floating Rate Secured
Portfolio Credit-Linked Notes due 2013

  -- Current Rating: Caa2
  -- Prior Rating: A1
  -- Prior Rating Date: 28 March 2007

Empyrean Finance (Ireland) PLC:

(1) US$9,000,000 Class C-1U7B Floating Rate Secured Portfolio
Credit-Linked Notes due 2013

  -- Current Rating: Caa3
  -- Prior Rating: A2
  -- Prior Rating Date: 28 March 2007

(2) USD15,000,000 Class C1-1U7h Floating Rate Secured Portfolio
Credit-linked Notes due 2014

  -- Current Rating: Ca
  -- Prior Rating: A2
  -- Prior Rating Date: 30 July 2007



ENSHA DEVELOPMENT: Commences Liquidation Proceedings
----------------------------------------------------
On November 8, 2008, the sole shareholder of Ensha Development
Finance Ltd. passed a resolution to voluntarily liquidate the
company's business.

The company's liquidators are:

          Waleed Mohammed
          Ali Al-Ghannem
          Kuwait Finance House
          Safat Square
          Junction of Abdulla Al-Mubarak Street and
          Fahd Al-Salem Street, Kuwait City, Kuwait


FAIR HAVEN: Commences Liquidation Proceedings
---------------------------------------------
On November 14, 2008, the shareholders of Fair Haven Capital
Master Fund resolved to voluntarily liquidate the company's
business.

Only creditors who were able to file their proofs of debt by
December 9, 2008, to be included in the company's dividend
distribution.

The company's liquidators are:

          Bernard Mcgrath
          David Walker
          c/o PO Box 1043, Grand Cayman KY1-1102
          Cayman Islands
          Tel: 949-0050
          Fax: 949-8062


GOLDMAN SACHS ALPHA: Creditors' Proofs of Debt Due on December 24
-----------------------------------------------------------------
The creditors of Goldman Sachs Alpha-Beta Continuum Erisa 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 Oct. 24, 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


GOLDMAN SACHS LIQUID: Creditors' Proofs of Debt Due on December 24
------------------------------------------------------------------
The creditors of Goldman Sachs Liquid Trading Opportunities Fund
Offshore, 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 Oct. 24, 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


GOLDMAN SACHS NORTH: Creditors' Proofs of Debt Due on December 24
-----------------------------------------------------------------
The creditors of Goldman Sachs North American Equity Opportunities
Fund Offshore, 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 Oct. 24, 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


GOLDMAN SACHS QUANTITATIVE: Proofs of Debt Due on Dec 24
--------------------------------------------------------
The creditors of Goldman Sachs Quantitative Fixed Income Alpha
Fund Offshore, 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 Oct. 24, 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


INVICTA LIQUIDFUNDS: Creditors' Proofs of Debt Due on December 29
-----------------------------------------------------------------
The creditors of Invicta Liquidfunds Japan Fund Limited 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. 14, 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


INVICTA LIQUIDFUNDS: Creditors' Proofs of Debt Due on December 29
-----------------------------------------------------------------
The creditors of Invicta Liquidfunds General Partner Limited 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. 14, 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


MIDTOWN ALPHA: Creditors' Proofs of Debt Due on December 29
-----------------------------------------------------------
The creditors of Midtown Alpha Fund Limited 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 Dec. 29, 2008.

The company's liquidator is:

          Avalon Management Limited
          c/o Mourant du Feu & Jeune
          Telephone:(+1) 345 949 4123
          Facsimile:(+1) 345 949 4647


QIBLAH PROPERTY: Commences Liquidation Proceedings
--------------------------------------------------
On November 8, 2008, the sole shareholder of Qiblah Property
Investments, Ltd. passed a resolution to voluntarily liquidate the
company's business.

The company's liquidators are:

          Waleed Mohammed
          Ali Al-Ghannem
          Kuwait Finance House
          Safat Square
          Junction of Abdulla Al-Mubarak Street and
          Fahd Al-Salem Street, Kuwait City, Kuwait


SHARQ PROPERTY: Commences Liquidation Proceedings
-------------------------------------------------
On November 8, 2008, the sole shareholder of Sharq Property
Finance, Ltd. passed a resolution to voluntarily liquidate the
company's business.

The company's liquidators are:

          Waleed Mohammed
          Ali Al-Ghannem
          Kuwait Finance House
          Safat Square
          Junction of Abdulla Al-Mubarak Street and
          Fahd Al-Salem Street, Kuwait City, Kuwait



SHIMAO PROPERTY: Moody's Cuts CFR to Ba3; Outlook Negative
----------------------------------------------------------
Moody's Investors Service has downgraded the corporate family
rating of Shimao Property Holdings Limited to Ba3 from Ba2. At the
same time, Moody's has downgraded the company's senior unsecured
bond rating to B1 from Ba2 due to subordination risk. The outlook
on all ratings is negative.

This concludes the rating review initiated on October 3, 2008.

"The downgrade has been driven mainly by the high probability that
Shimao's sales performance will be weaker than expected because of
the softening property market," says Peter Choy, a Moody's Vice
President and Senior Credit Officer, adding that, "Such under
performance will further pressure its near to medium term
financial and liquidity profiles while the operating environment
remains challenging."

"Moreover, Shimao's headroom for covenant compliance is expected
to remain tight for its bank loans thereby affecting its funding
stability," comments Mr. Choy.

"Despite the Chinese authorities' gradual loosening of regulatory
measures, Moody's expects Shimao to face challenge in raising
committed new financing to support its operations and funding
requirements," adds Mr. Choy.

While Shimao may dispose of some of its assets to improve
liquidity, this may take time to materialize given the tight
credit environment.

At the same time, Shimao's Ba3 rating is supported by its well-
located projects in China's economically strong provinces, low
land cost, earnings from investment properties, and moderate debt
leverage measured by debt/total capitalization at around 35 -45%.

With tight offshore bank financing, Shimao has relied on onshore
secured bank loans. This has resulted in secured bank debt
increasing to around 15 - 20% of its total assets, which raises
the risk of legal subordination. Accordingly, its senior unsecured
bond rating has been further downgraded by one notch to B1.

The negative outlook reflects the vulnerability of the company's
bank loans given the tight headroom regarding its covenants and
the challenge it faces to improve its sales performance over the
next 1 -- 2 years.

The likelihood of upward rating pressure is limited in the near
term given the negative outlook. The ratings may return to stable
if Shimao can (a) secure appropriate banking financing for its
investment and development projects; (b) improve headroom on
covenant compliance; and (c) strengthen its balance sheet
liquidity and/or back-up liquidity arrangement.

The rating could be downgraded if Shimao (a) continues to fall
short of its target sales; (b) triggers a breach of its financial
covenants; (c) experiences further weakening of its balance sheet
liquidity; and/or (iv) pursues additional aggressive debt-funded
land acquisitions. Under such conditions, Shimao's operating cash
flow would continue to be in deficit with interest coverage
deteriorating to EBITDA/interest below 2.5 -- 3.5x.

Moody's last rating action was taken on October 3, 2008 when the
ratings of Shimao were placed under review for possible downgrade.

The principle methodology applied in rating China Properties is
the rating Methodology on Homebuilding dated December 2004 which
can be found at http://www.moodys.comin the Credit Policy &
Methodologies directory, in the Rating Methodologies subdirectory.

Shimao Property Holdings Ltd is incorporated in Grand Cayman and
was listed on the Hong Kong Stock Exchange in July 2006. It has 33
projects in China mainly located in Shanghai, Beijing, the Yangtze
River Delta and the Bohai Rim.


SION HALL: Creditors' Proofs of Debt Due on December 24
-------------------------------------------------------
The creditors of Sion Hall Macro 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 April 11, 2008.

The company's liquidator is:

          Avalon Management Limited
          Avalon Management Limited
          Telephone:(+1) 345 946.4422
          Facsimile:(+1) 345 769.9351
          c/o P.O. Box 715, Grand Cayman KY1-1107
          Cayman Islands



* INSOL Names Graduates of Insolvency Course
--------------------------------------------
(from Peter)

INSOL International revealed the first graduating class of the
Global Insolvency Practice Course.  The successful  participants
are now formally recognised as a Fellow, INSOL International.

-- Scott Atkins, Henry Davis York Lawyers, Australia
-- Jasper Berkenbosch, DLA Piper, The Netherlands
-- Samantha Bewick, KMPG LLP, UK
-- Peter Declercq, Brown Rudnick LLP, UK
-- Robert Dakis, Quinn Emanuel Urquhart Oliver & Hedges LLP, USA
-- Jasper Frieling, H?cker Avocaten, The Netherlands
-- Leonard Goldberger, Stevens & Lee, P.C., USA
-- Peter Gothard, Ferrier Hodgson, Australia
-- Jackson Ip, Horwath Corporate Advisory Services Ltd, Hong Kong
-- Eric Jourdanet, IFC, USA
-- Fredrikus Kolkman, Kolkman Advocaten voor
    Ondernemers BV, The Netherlands
-- Christopher McDuff, Myers & Alberga, Cayman Islands
-- Curtis Mechling, Stroock & Stroock & Lavan LLP, USA
-- Edward Middleton, KPMG LLP, Hong Kong PRC
-- Mak Mwenya, PricewaterhouseCoopers LLP, UK
-- Bruno Navarro, IFC, Hong Kong PRC
-- Stephen Packman, Archer & Greiner, PC, USA
-- Richard Pedone, Nixon Peabody, USA
-- Christiaan Zijderveld, Houthoff Buruma, The Netherlands

The Global Insolvency Practice Course is the pre-eminent advanced
educational qualification focusing on international insolvency.

With the fast growing number of cross-border insolvency cases and
the adoption in many jurisdictions of international insolvency
rules and provisions, the turnaround and insolvency profession
faces increasing challenges in the current economic environment.
The current outlook demonstrates that the practitioners of
tomorrow need to have extensive knowledge of the transnational and
international aspects of legal and financial problems of
businesses in distress.

The format of the fellowship programme is intensive, carried out
over a short period of time in three modules.  The first module
was held in the Netherlands from the June 16-18, 2008 at the
Faculty of Law of Leiden University.  The second module took place
in Shanghai from the September 12-14, 2008, prior to the INSOL
annual conference.  The last module involved the students
utilizing web enabled technology which included a virtual court
and undertaking real time negotiations for a restructuring plan
involving multiple jurisdictions.  The platform for this module
was made available through the generous support of the University
of British Columbia, Vancouver, Canada.  A number of senior judges
from around the world took part in Module C in order for the
participants to gain experience of court to court situations.  The
judges included:

  * Judge Robert Drain, US Bankruptcy Court;
  * Judge David Richards, Royal Courts of Justice, London;
  * Judge David Tysoe, British Columbia Court of Appeal,
  * Judge Jean-Luc Vallens, Cour Commerciale, France;
  * Judge Rajiv Shakdher, High Court of Delhi;
  * Judge James Farley, retired judge Ontario Superior Court of
    Justice.

Admission to the course is limited to a maximum of 25 candidates
each year.  This ensures academic excellence and the opportunity
for good personal contact between students and faculty.  Potential
candidates must already hold a degree or equivalent to be
considered for this program and must have a minimum of 5 years
experience in the field.  Participants represent the different
jurisdictions of the World.

Mahesh Utamachandani, Senior Counsel and Head of Global Insolvency
Initiative, World Bank:

“The fellowship programme will be a very rewarding investment
towards a successful career, both through helping the development
of professional skills and through fostering a greater
understanding of different jurisdictions' cultures and systems."

Professor Ian Fletcher of University College London, a member of
the Core Committee responsible for planning the program:

"Designed and taught by an international Faculty of highly
distinguished experts, the INSOL Fellowship Program offers a
unique learning experience.  It answers a long-felt demand for a
benchmark qualification to identify those practitioners who are in
the front rank of transnational insolvency practice in today's
challenging global market place."

Bob Sanderson, President of INSOL:

“In the ever increasingly complex capital markets coupled with the
continued globalization the requirement for those charged with
ensuring the troubled international enterprises are restructured
effectively and efficiently is vital.  This program meets this
requirement.”

For further information contact

INSOL International: 00(44) (0) 20 7929 6679 or
e-mail: pennyr@insol.ision.co.uk:

Core Committee:

  * Prof. Bob Wessels
    University of Leiden

  * Prof. Ian Fletche
    University College London

  * Prof. Janis Sarra
    University of British Columbia

  * Adam Harris
    Bowman Gilfillan

                        Faculty of Law

*INSOL was formed in 1982 and has grown in stature to become the
leading insolvency association in the world.  It is a valuable
source of professional knowledge, which is being put to use around
the world on diverse projects to the benefit of the business and
financial communities.

                       INSOL'S Mission

INSOL with its Member Associations will take the leadership role
in international turnaround, insolvency and related credit issues;
facilitate the exchange of information and ideas; encourage
greater international co-operation and communication amongst the
insolvency profession, credit community and related INSOL
International is a worldwide federation of national associations
of accountants and lawyers who specialise in turnaround and
insolvency.   There are currently 40 Member Associations with over
9,700 professionals participating as members.



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

RIO TINTO GROUP: BHP Plans to Buy Escondida Mine Stake
------------------------------------------------------
The Australian reports that BHP Billiton Limited has shown
interest in buying Rio Tinto Group's stake in the Escondida copper
mine in Chile.

According to the report, BHP chief financial officer Alex Vanselow
told Brazilian media that the company was "very interested" in
Rio's 30 per cent stake in Escondida, the world's biggest copper
mine, which would take BHP's share in the mine to nearly 90 per
cent.

The report relates UBS analyst Glyn Lawcock valued Rio's Escondida
stake at US$US4 billion.

Mr. Lawcock, as cited by the report, said Rio was unlikely to sell
all or part of its Pilbara iron ore operations because of the
potential to double current capacity of 220 million tonnes a year.

As reported by the Troubled Company Reporter-Asia Pacific on
December 11, 2008, Rio Tinto Group plans to further reduce its net
debt by US$10 billion by the end of 2009 through expanding the
scope of assets targeted for divestment to include significant
assets not previously highlighted for sale.

Bloomberg News related BHP Billiton abandoned its hostile US$66
billion bid for Rio Tinto plc on Nov. 25 citing Rio's debt and
slumping demand for commodities.

BHP Billiton, in a November 27 statement, confirmed its offer for
Rio Tinto plc has lapsed and that, given the inter-conditionality
of its offers for Rio Tinto plc and Rio Tinto Limited, its offer
for Rio Tinto Limited has also lapsed.

As reported by the Troubled Company Reporter-Europe on Dec. 11,
2008, the debt-reduction plan will be done through expanding the
scope of assets targeted for divestment to include significant
assets not previously highlighted for sale.

Measures to reduce costs include:

  -- Reducing global headcount by 14,000, comprising 8,500
      contractor jobs and 5,500 employee roles (annual operating
      cost saving of US$1.2 billion, upfront severance costs of
      US$400 million)

  -- Consolidation of offices around the Group, including the
      London head office

  -- Rapid acceleration in 2009 of outsourcing and off-shoring of
      IT and procurement

  -- Deferral of exploration and evaluation expenditure

                          About BHP

Based in Australia, BHP Billiton Limited --
http://www.bhpbilliton.com/ -- is a diversified natural resources
company.  The company has businesses producing alumina and
aluminum, copper, energy (thermal) coal, iron ore, nickel,
manganese, metallurgical coal, oil and gas and uranium, as well as
gold, zinc, lead, silver and diamonds.  The company operates in
nine customer sector groups (CSGs): petroleum, aluminum, base
metals, diamonds and specialty products, stainless steel
materials, iron ore; manganese, metallurgical coal, and energy
coal.  In July 2008, the company completed the acquisition of
Anglo Potash Ltd.

                          About Rio Tinto

Rio Tinto -- http://www.riotinto.com/-- is an international
mining group headquartered in the UK, combining Rio Tinto plc, a
London and NYSE listed public company, and Rio Tinto Limited,
which is a public company listed on the Australian Securities
Exchange.

Rio Tinto's business is finding, mining, and processing mineral
resources.  Major products are aluminium, copper, diamonds, energy
(coal and uranium), gold, industrial minerals (borax, titanium
dioxide, salt, talc) and iron ore.  Activities span the world but
are strongly represented in Australia and North America with
significant businesses in South America, Asia, Europe and southern
Africa.



==================
C O S T A  R I C A
==================

ALCATEL-LUCENT: To Cut 1,000 Management Jobs & 5,000 Contractors
----------------------------------------------------------------
Alcatel-Lucent has plans to cut 1,000 management jobs and 5,000
contractors, Datamonitor reports.

The company will also cut costs in real estate, support functions,
and discretionary spending, and said it is aiming to achieve total
savings of EUR750 million (US$997 million) by the fourth quarter
next year, the report relates.

According to the report, Alcatel-Lucent said a realignment of its
operations will focus on service providers, enterprises, and
selected vertical markets.

Alcatel-Lucent CEO Ben Verwaayen, as quoted by Datamonitor, said:
"We will work closely with our service provider, enterprise
customers, and applications providers to make this strategic
transformation happen.  We want to stimulate a sustainable
business model for the industry that will fuel innovation and the
capital investment required to expand the overall web experience
to more people and businesses."

Last month, Datamonitor recounts, the company reported a net loss
of EUR40 million (US$51.14 million) for the third quarter 2008,
against a loss of EUR318 million (US$458.38 million) in the year-
ago quarter, on revenue down 7% at EUR4.07 billion (US$5.2
billion).

                       About Alcatel-Lucent

Headquartered in Paris, France, Alcatel-Lucent S.A. --
http://www.alcatel-lucent.com/-- provides solutions that enable
service providers, enterprises and governments worldwide to
deliver voice, data and video communication services to end
users.

Alcatel-Lucent maintains operations in 130 countries, including,
Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada,
United States, Costa Rica, Dominican Republic, El Salvador,
Guatemala, Peru, Venezuela, Indonesia, Australia, Brunei and
Cambodia.

                          *     *     *

Alcatel Lucent continues to carry 'BB-/B' long- and short-term
corporate credit ratings from Standard & Poor's.  The ratings were
affirmed and the outlook changed from stable to negative in August
2008.

The 'BB-/B-1' long and short-term corporate credit ratings on
subsidiary Lucent Technologies Inc., and all issue ratings on both
companies were also affirmed.

Alcatel-Lucent also carries Ba3 Corporate Family and Senior Debt
ratings, Not-Prime for short term debt, as well as B2 ratings for
subordinated debt with negative outlook from Moody's.  The ratings
were affirmed in April 2008.



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

* ECUADOR:Fitch Downgrades Long-Term IDR to 'RD' From 'CCC'
----------------------------------------------------------
Fitch Ratings has downgraded Ecuador's long-term foreign currency
Issuer Default Rating (IDR) to 'RD' from 'CCC' following the
expiration of the grace period for the coupon payment on the 2012
global bonds that was due on Nov. 15 and the government's
announcement that it will selectively default on all global bonds.
The short-term foreign currency rating was downgraded to 'D' from
'C'.  The country ceiling remains at 'B-'.

In addition, the following individual bond ratings are downgraded
by Fitch:

  -- Global 2012 & 2030 uncollateralized foreign currency bonds to
    'C/RR5' from 'CCC-/RR5'.

  -- Global 2015 uncollateralized foreign currency bonds to
    'CC/RR4' from 'CCC/RR4'

  -- Collateralized foreign currency Par and Discount Brady bonds
     to'CCC-/RR3' from 'CCC+/RR3';

Based on Fitch's Recovery Rating scale, in the event of a default
an 'RR5' indicates below average recovery prospects, which have
been historically between 11% and 30%, an 'RR4' indicates average
recovery prospects between 31% and 50% and an 'RR3' indicates good
recovery prospects between 51% and 70%.  As the government has
repeatedly differentiated the 2012 and 2030 global bonds as
'illegal' and 'illegitimate', Fitch believes the government will
seek a higher reduction in the nominal value of these instruments
in a restructuring, justifying the below average recovery ratings
on these bonds.  By contrast, based on the value of the underlying
collateral of the Brady bonds, Fitch believes recovery prospects
are higher than average for these bonds.

Given the government's official statements declaring a moratorium
on outstanding global bonds, Ecuador's foreign currency IDR will
remain in 'RD' until the government successfully renegotiates new
repayment terms with bondholders.



=========
H A I T I
=========

* HAITI: IDB to Double Financial Aid to US$100 Million
------------------------------------------------------
Inter-American Development Bank (IDB) President Luis Alberto
Moreno said it will double its aid to Haiti by to US$100 million
to help the struggling country upgrade its crumbling
infrastructure and broaden social programs, Caribworldnews
reports.

The report relates IDB's board also approved US$14 million in
interim debt relief for Haiti for the first half of 2009.  Some
US$15 million of that will be earmarked for potable water and
sanitation projects in the storm-ravaged cities of Gonaives, Port
de Paix, Les Cayes, Ouanaminthe, and Saint Marc.

"Haiti is the most fragile of our member countries.  No other
nation in Latin America and the Caribbean is as vulnerable to
economic shocks and natural disasters," Mr. Moreno was quoted by
Caribworldnews as saying.  "It requires extraordinary assistance
from the international community," he said.

The report recalls the announcement follows the deaths of some 800
people in back-to-back storms during this year's hurricane season.



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

CORPORACION DURANGO: U.S. Court Cedes to Mexico Main Proceeding
---------------------------------------------------------------
Corporacion Durango SAB, has won recognition from the U.S.
Bankruptcy Court for the Southern District of New York that the
Mexico court won recognition of a Mexico court as home to the
foreign main proceeding for the company's restructuring.

According to Bloomberg News' Bill Rochelle, the order signed by
the U.S. Bankruptcy Court contained an exception to the otherwise
broad prohibition against all creditor actions in the United
States.  As a compromise with senior noteholders, the bankruptcy
judge allowed suits in any court so the noteholders may challenge
efforts by the company to cancel the notes.

As reported by the Troubled Company Reporter on Oct. 14,
Corporacion Durango won from the Bankruptcy a temporary
restraining order from lawsuits against it after it filed a
Chapter 15 petition on Oct. 6, 2008.

Chapter 15 allows a U.S. Bankruptcy Judge to aid a bankruptcy
pending in another country.  Durango simultaneously commenced a
bankruptcy reorganization in a The First Federal District Court in
Durango began simultaneous proceedings to protect the Corporacion
Durango's creditors in Mexico.

On October 6, 2008, two U.S.-based subsidiaries of Corporacion
Durango filed for Chapter 11 -- Paper International, Inc., and
Fiber Management of Texas, Inc. in the U.S. Bankruptcy Court.
See: http://www.internationalpaper.com

                    About Corporacion Durango

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

After The First Federal District Court in Durango approved its
plan of reorganization and declared the termination of its
"Concurso Mercantil" proceeding, the Company filed for Chapter 15
bankruptcy (Bankr. S.D. N.Y. Case No. 08-13911) on Oct. 6, 2008.
Two affiliates filed for Chapter 11 bankruptcy protection
separately on the same day.

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


KEY PLASTICS: Financial Woes Cue Chapter 11; Files Prepack Plan
---------------------------------------------------------------
Key Plastics LLC along with its affiliate, Key Plastics Finance
Corp., filed a voluntary petition under Chapter 11 of the United
States Bankruptcy Court for the District of Delaware citing
financial difficulties due to the recent economic downturn in the
automotive industry.

The company said it defaulted under the indenture governing the
11-3/4% senior secured notes due 2013 that resulted in a cross
default under a certain revolving credit facility agreement with
The CIT Group/Business Credit Inc. and Jefferies Finance dated
March 12, 2007.  The company further said that it replaced the
facility with a prepetition term loan of US$10 million.

In conjunction with the Chapter 11 filing, the company proposes a
joint Chapter 11 prepackaged plan of reorganization to restructure
its existing equity and debts by conversion of its senior secured
debt into equity or retirement.

Under the plan, each holder of series A unit claims will be paid
equal to US$474 per series A unit in cash.  At its option, holders
will be entitled to receive, either:

  -- pro rata share of 65% of the full-diluted new common units
     to be issued by the company post-confirmation, which will be
     subsequently be contributed to the reorganized Finance Corp.
     in turn for an equal percentage of new common stock to be
     issued by the reorganized Finance Corp.; or

  -- cash equal to 16% of the face value of the holder's senior
     notes.

Furthermore, holders of senior notes who elect to receive their
pro rata share of new the company equity in which holders may
subscribe for its pro rata share of no more than 35% of the new
company equity, which will also be subsequently be contributed to
the reorganized Finance Corp. in exchange for an equal percentage
of new Finance Corp. equity.

On the Plan's effective date, 100% of new company equity will be
held by the reorganized Finance Corp. and 100% of new Finance
Corp. equity will be held by former holders of senior notes,
rendering reorganized company as wholly-owned subsidiary of the
reorganized Finance Corp.

According to the company, the plan provides for the payment in
full of allowed (i) administrative expense claims; (ii) priority
tax claims; (iii) claims pursuant to any debt facilities approved
by the Court; (iv) other priority claims; (v) lease rejection
claims; and (vi) general unsecured claims -- including trade
creditor claims.  The plan leaves holders of other secured claims
against the Debtors impaired, the company noted.

The company related that on Nov. 12, 2008, it solicited votes on
the plan, wherein holders of senior notes claims and series A unit
claims voted to accept the plan.

The company said that the plan contemplates the reduction of its
outstanding indebtedness by as much as US$121.756 million, which
will provide the company with greater liquidity, better
positioning from an operation standpoint ahead.

In addition, the company said Wayzata Investment Partners LLC will
provide up to US$20 million in rights offering to fund the
restructuring, among other things.

The company said it expects that the restructuring will be
completed by January 2009.

Ralph Ralston, President & COO of the company's North American
operations, stated, "In the face of today's economic conditions,
we are pleased to have achieved such strong support for a
consensual restructuring that is beneficial to our employees,
customers, and suppliers by dramatically improving our balance
sheet, eliminating the related debt service obligations, and
enabling continued reinvestment in our products and future
growth."

"This process will give Key Plastics one of the strongest
financial profiles in the industry, and allow us to persevere
through the current industry environment while continuing to
provide exceptional products and services to our customers
worldwide.  We look forward to the continued support of Wayzata
and DDJ and their long-term commitment to the business," Mr.
Ralston said.

The company listed assets and debts between US$100 million and
US$500 million in its filing.  The company owes US$1.4 million to
BASF Corporation; US$1.4 million to Jing Mei Automotive (USA)
Inc.; and US$478,975 to Basilius Tool Company.

Chief financial officer John Will disclosed that KAC Acquisition
Company owns 100% of Key Plastics LLC common interest; Bank One,
NA, owns 11.9% of Key Plastics LLC series A preferred units; and
Eaton Vance Corp. owns 10.3% of Key Plastic LLC series A
preferred.

                        About Key Plastic

Headquartered in Northville, Michigan, Key Plastics LLC --
http://www.keyplastics.com/-- supplies plastic components to the
automotive industry.  The company has 24 manufacturing facilities
located in the United States, Canada, Mexico, Germany, Portugal,
Spain, the Czech Republic, France, Slovakia, Italy and China.
According to Bloomberg News, the company filed for bankruptcy in
March 23, 2000, in Detroit and emerged a year later under the
ownership of private-equity firm Carlyle, Bloomberg says.


KEY PLASTICS: Case Summary & 30 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Key Plastics LLC
       aka Key Plastics Technology, LLC
       21700 Haggerty Road, Suite 100
       Northville, MI 48167

Bankruptcy Case No.: 08-13326

Debtor-affiliates filing separate Chapter 11 petitions:

       Entity                                     Case No.
       ------                                     --------
Key Plastics Finance Corp.                         08-13324

Related Information: The Debtors supply plastic components to the
                    automotive industry.  The Debtors have 24
                    manufacturing facilities located in the
                    United States, Canada, Mexico, Germany,
                    Portugal, Spain, the Czech Republic, France,
                    Slovakia, Italy and China.

                    According to Bloomberg News, the company
                    filed for bankruptcy in March 23, 2000, in
                    Detroit and emerged a year later under the
                    ownership of private-equity firm Carlyle,
                    Bloomberg says.

                    See: http://www.keyplastics.com/

Chapter 11 Petition Date: December 15, 2008

Court: District of Delaware (Delaware)

Judge: Mary F. Walrath

Debtors' Counsel: Mark D. Collins, Esq.
                 collins@RLF.com
                 Richards Layton & Finger PA
                 One Rodney Square
                 P.O. Box 551
                 Wilmington, DE 19899
                 Tel: (302) 651-7700
                 Fax: (302) 651-7701

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

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

The petition was signed by senior vice president and chief
financial officer John Wilson.

The Debtors' Largest Unsecured Creditors:

  Entity                      Nature of Claim   Claim Amount
  ------                      ---------------   ------------
BASF Corporation               trade           US$1,412,113
Attn: John Byrd
100 Campus Drive
Florham Park, NJ 07932
Tel: (248) 641-1820
Fax: (248) 641-7370

Jing Mei Automotive            trade             $1,315,844
(USA) Inc.
Attn: Bob Boyd
10415 United Parkway
Schiller Parkway, IL 60176
Tel: (248) 703-7270
Fax: (847) 617-5311

Basilius Tool Company          trade             $478,975
Attn: Scott Basilius
4338 South Avenue
Toledo, OH 43615
Tel: (419) 536-5810
Fax: (419) 536-0391

Phillips Sumika                trade             $353,913

Rhodia Polyamide Corp.         trade             $167,065

Zatkoff Seals and Packings     trade             $125,787

Polyone Corporation            trade             $124,496

Rhetech Inc.                   trade             $124,331

Perot Systems                  trade             $109,810

Tek-Cast Inc.                  trade             $104,673

BDO Seidman LLP                trade             $101,282

DTE Energy                     trade             $90,377

Commercial Spring and          trade             $83,568
Tool

Deco' Plate                    trade             $72,123

Dynacast Canada                trade             $68,849

Dixon Tool Co. Ltd.            trade             $68,800

Luck Marr                      trade             $63,032

Madison Tool Inc.              trade             $63,023

Packaging Specialties          trade             $57,400

Specialty Industries Inc.      trade             $49,841

Elite Welding & Fabricating    trade             $49,235

Rich Industries Inc.           trade             $47,689

American Electric Power        trade             $43,208

LyondellBasell Advanced        trade             $41,702

Epic Equipment & Engineering   trade             $41,400

Lightning Components & Design  trade             $39,385

Washington Penn Plastic Co.    trade             $38,759

JTEKT Automotive               trade             $38,397

Fastco Industries Inc.         trade             $37,075

Foster Electric America        trade             $35,120


LAIRD PLC: To Cut Global Workforce by 40%, Shutter 3 U.S. Plants
----------------------------------------------------------------
Laird PLC disclosed plans to reduce its direct labor force by
about 40%, or some 4,500 employees -- including the normal
seasonal reduction at year end -- and direct and indirect overhead
by approximately 14%, or some 500 employees, in the fourth quarter
of 2008.

Laird's manufacturing facility in Hungary is in the process of
being closed, and three of its facilities in the U.S. will be
closed or downsized significantly, with production from these
sites transferred to Mexico and China.

Laird said the plant closures will lead to further labor and
overhead reductions during the first half of 2009.  The actions
will result in exceptional charges of up to GBP20 million being
incurred in 2008, of which some GBP14 million will be cash and the
remainder asset write-downs.  Annualized net benefits will be at
least GBP12 million, being realized progressively during 2009.

"We currently expect that our underlying performance in 2008 will
be within expectations. As anticipated in our Trading Update on 18
November, we have seen an acceleration of the slowdown in demand
for our products across virtually all of our market sectors in
November.

This has continued into December, with de-stocking in the global
supply chain. As a result, we expect revenue at constant exchange
rates in the fourth quarter of 2008 to be 25% to 30% below that in
the same period of 2007, although currency movements will mitigate
considerably the reduction in revenue when expressed in Sterling,"
the company said in a press release.

"The flexibility of our business has allowed us to respond rapidly
to the slowdown.

"For planning purposes we are assuming that the current de-
stocking lasts through at least the first quarter of 2009, and
that there will be no market recovery during 2009. Our planning
assumption is that global unit handset volumes will decline by 10%
from 2008 levels.  We expect that the cost reduction measures that
we are implementing, lower commodity prices, greater penetration
of our products, and the breadth of our business activities, will
underpin our performance in 2009.

"Financially, Laird remains strong with low financial gearing and
high single digit interest cover in 2008.  Our revolving credit
facilities run to 2012 and our Private Placement to 2016. While
the current downturn persists, we are able to maintain our
investment in enhancing our technical and operational
capabilities, and expect to increase our penetration at key
customers as well as increase the extent of our vertical
integration.  These actions, together with our ability to
respond rapidly to any economic recovery, will benefit the Company
when markets improve."

London, U.K.-based Laird PLC designs and supplies performance-
critical components and systems for wireless and other advanced
electronic applications.  It has operations in North America,
Europe and across Asia.

Its U.S. affiliate, Laird Technologies, Inc., is based in
Chesterfield, Missouri.

The company has operations in Mexico.



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

HEALTHSOUTH CORP: 3 Executives Acquire 34,900 Shares
----------------------------------------------------
Edward L. Shaw, Jr., director of HealthSouth Corp., disclosed in a
Form 4 filing with the Securities and Exchange Commission that he
acquired 5,000 shares of the company's common stock on Nov. 13,
2008.  He acquired the shares at prices of US$10.82 to US$10.88
apiece, and owned a total of 26,653 shares following the
purchases.

John L. Workman, the company chief financial officer, also
disclosed the purchase of 5,000 shares of common stock as of
Nov. 10, 2008.  He acquired the shares at US$11.74 to US$11.78
apiece, and owned an aggregate 96,705 shares following the
purchases.

In a separate filing, Jay Grinney, chief executive officer of the
company, disclosed that he may be deemed to directly own 392,653
shares of the company's common stock after the acquisition of
24,900 shares of common stock on Nov. 10, 2008.

The company has 88,022,103 shares of common stock outstanding, net
of treasury shares, as of Oct. 31, 2008.

                    About HealthSouth Corp.

Headquartered in Birmingham, Alabama, HealthSouth Corp. (NYSE:
HLS) -- http://www.healthsouth.com/-- provides inpatient
rehabilitation services.  Operating in 26 states across the
country and in Puerto Rico, HealthSouth serves more than 250,000
patients annually through its network of inpatient rehabilitation

hospitals, long-term acute care hospitals, outpatient
rehabilitation satellites, and home health agencies.

At Sept. 30, 2008, the company's balance sheet showed total assets
of US$1.9 billion and total liabilities of US$3.3 billion,
resulting in a shareholders' deficit of about US$1.4 billion.

For three months ended Sept. 30, 2008, the company's net income
was US$6.6 million compared with net income of US$287.6 million
for the same period in the previous year.

For nine months ended Sept. 30, 2008, the company reported net
income of US$70.5 million compared with net income of US$699.2
million for the same period in the previous year.

In total and through October 2008, the company has reduced its
total debt outstanding by approximately US$208 million since
Dec. 31, 2007.  Total debt outstanding approximated US$1.8 billion
as of Oct. 31, 2008.


HEALTHSOUTH CORP: Executives Buy Shares of Stock, Disclose Stake
----------------------------------------------------------------
John E. Maupin, Jr. DDS, a director of Healthsouth Corporation,
disclosed in a regulatory filing with the Securities and Exchange
Commission that he may be deemed to beneficially own 15,898 shares
of the company's common stock after the Nov. 26, 2006, acquisition
of 1,000 shares of common stock at US$10.0488 per share.

In a separate filing, Edward A. Blechschmidt, a director of the
company, disclosed that he acquired 4,000 shares of the company's
common stock on Nov. 20, 2008.  He acquired the shares at US$8.99
to US$9.52 apiece.  After the acquisitions, Mr. Blechschmidt may
be deemed to directly own 21,187 shares.

John P. Whittington, general counsel & secretary of the company,
also disclosed that he acquired 9,000 shares of the company's
common stock on Nov. 12, 2008.  After the acquisitions, Mr.
Whittington may be deemed to directly own 52,857 shares.

Edmund Fay, senior vice president and treasurer, also disclosed
that he may be deemed to beneficially own 8,750 shares after the
Nov. 12, 2008, purchase of 3,250 shares of common stock at
US$10.99 per share.

The company has 88,022,103 shares of common stock outstanding, net
of treasury shares, as of Oct. 31, 2008.

                    About HealthSouth Corp.

Headquartered in Birmingham, Alabama, HealthSouth Corp. (NYSE:
HLS) -- http://www.healthsouth.com/-- provides inpatient
rehabilitation services.  Operating in 26 states across the
country and in Puerto Rico, HealthSouth serves more than 250,000
patients annually through its network of inpatient rehabilitation
hospitals, long-term acute care hospitals, outpatient
rehabilitation satellites, and home health agencies.

At Sept. 30, 2008, the company's balance sheet showed total assets
of US$1.9 billion and total liabilities of US$3.3 billion,
resulting in a shareholders' deficit of about US$1.4 billion.

For three months ended Sept. 30, 2008, the company's net income
was US$6.6 million compared with net income of US$287.6 million
for the same period in the previous year.

For nine months ended Sept. 30, 2008, the company reported net
income of US$70.5 million compared with net income of US$699.2
million for the same period in the previous year.

In total and through October 2008, the company has reduced its
total debt outstanding by approximately US$208 million since
Dec. 31, 2007.  Total debt outstanding approximated US$1.8 billion
as of Oct. 31, 2008.


PILGRIM'S PRIDE: Incurs US$1.06B Operating Loss for FY2008
----------------------------------------------------------
Pilgrim's Pride Corp., filed with the Securities and Exchange
Commission its annual report on form 10-K showing an operating
loss of US$1.06 billion for the fiscal year ended Sept. 27 on
revenue of US$8.5 billion.  The gross loss was US$164 million, and
the net loss was US$999 million.

The company focused its sales efforts on the foodservice industry,
principally chain restaurants and food processors.  In 2008, it
sold 8.4 billion pounds of dressed chicken and generated net sales
of US$8.5 billion.  In 2008, its US operations, including Puerto
Rico, accounted for 93.2% of net sales. Mexico operations
generated the remaining 6.8% of net sales.

Bloomberg News' Bill Rochelle notes that the year's results
included a US$501 million goodwill impairment charge.

In December 2006, the company acquired a majority of the
outstanding common stock of Gold Kist Inc., and subsequently
acquired the remaining stock.  In November 2003, it completed the
purchase of all the outstanding stock of ConAgra Foods, Inc.'s
chicken division.

A copy of the Form 10-K is available for free at:

      http://researcharchives.com/t/s?3647

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
$3,847,185,000, and debts of US$2,700,139,000 as of June 28, 2008.

A nine-member committee of unsecured creditors has been appointed
in the case.

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


PILGRIM'S PRIDE: Seeks to Pay Amounts Owed to Employees
-------------------------------------------------------
Pilgrim's Pride Corp. and its affiliated debtors seek approval
from the U.S. Bankruptcy Court for the Northern District of Texas
to pay prepetition amounts owed to their employees.

In connection with the Debtors' domestic operations, Pilgrim's
Pride employs about 43,000 individuals in the United States.
Majority of those employees are compensated on an hourly basis,
consisting of:

-- 24,236 full-time non-bargaining unit employees,
-- 13,165 are full-time bargaining unit employees,
-- two temporary NBU interns,
-- 62 part-time NBU employees,
-- two part-time BU employees, and
-- 48 are temporary NBU employees.

Pilgrim's Pride also employs individuals on a salaried basis,
consisting of (a) 3,765 full-time exempt employees, (b) 1,763
salaried non-exempt full-time employees, (iii) nine SNE part-time
employees, and (iv) four SNE temporary employees.

Additionally, 43 employees, 12 of whom are employed on an hourly
basis, are eligible to receive commissions, in addition to their
pay.

According to Stephen Young, Esq., proposed counsel to the
Debtors, at Weil, Gotshal & Manges LLP, in Dallas Texas, the
Debtors' continued operation of their businesses and their
successful reorganization depends largely on the retention of the
services of their employees and the maintenance of employee
morale and cooperation.  Consequently, it is critical that the
Debtors be authorized to satisfy their employee-related
obligations and continue their ordinary course employee plans,
policies, and programs in effect as of the Petition Date, he
says.

As of November 28, 2008, the Debtors estimate that the
outstanding prepetition employee obligations aggregate about
$74,970,000, including:

Wage Obligations                      US$31,750,000
Commission Obligations                       17,500
Payroll Taxes and Benefit Deductions      7,700,000
Garnishments                                344,000
Medical, Dental and Vision Plans         42,000,000
Basic Life, AD&D, etc.                       10,100
Short-term Disability Coverage              245,400
Long-Term Disability Coverage                   800
401(k) Plan                                 150,000
Service Awards                               27,000
Tuition Reimbursement Program               370,000
Car Allowance Program                        17,150
Relocation Reimbursement Plan                 1,100
Severance Plan                              246,000
Employee Monthly Stock Investment Plan       66,200
Deferred Compensation Plan                    4,200
Legacy Gold Kist Employee Plans              30,800

A summary of the Employee Obligations is available for free at:

http://bankrupt.com/misc/EmployeeObligations_112808.pdf

The outstanding Employee Obligations with respect to each
Employee for the period prior to the Petition Date, do not exceed
the US$10,950 cap under Section 507(a)(4) of the Bankruptcy Code,
the Debtors maintain.

The Debtors, accordingly, sought and obtained the Court's
authority to pay their current employees for work performed
prepetition and to honor certain prepetition employee-related
obligations and benefits and to continue administering their
employer programs and plans in the ordinary course of the
Debtors' business.

In line with the request, the Debtors ask the Court to authorize
and direct applicable banks to receive, process, honor and pay
any and all checks, electronic fund transfers, and automatic
payroll transfers drawn on the Debtors' payroll and general
disbursement accounts to the extent that the checks or transfers
relate to any of the prepetition employee obligations.

Mr. Youngman asserts that absent the requested relief, the
employees will suffer undue hardship, and in many instances,
serious financial difficulties, as the Employees need those
amounts to meet their own personal financial obligations.

The Court granted the Debtors' request on condition that no
insider of the Debtors may be paid pursuant to Incentive
Agreements, and provided that approval of the payments under the
Incentive Agreements will be without prejudice to the Official
Committee of Unsecured Creditors appointed in the Debtors' cases
to file a motion for reconsideration of the granting of the
request.

                  About Pilgrim's Pride

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 of US$2,700,139,000 as of June 28,
2008.

(Pilgrim's Pride Bankruptcy News, Issue No. 2; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000).


SIMMONS BEDDING: Lenders Extend Forbearance Period to March 2009
----------------------------------------------------------------
Simmons Bedding Company, a subsidiary of Simmons company, and its
senior lenders have agreed to extend the company's forbearance
period through the end of March 2009, subject to the terms of the
parties' agreement.

The forbearance period extension is designed to provide Simmons
with sufficient time to reduce the debt on its balance sheet
through an organized financial restructuring.  In agreeing to
extend the forbearance period, Simmons' lenders have demonstrated
their confidence in the company's ability to implement the
financial restructuring in a way that maximizes value for all of
its constituencies, including lenders, customers and suppliers.

Simmons President and Chief Operating Officer Steve Fendrich
stresses that the company's restructuring will not affect
retailers' day to day business relationship with the company.  "We
expect that the restructuring will be invisible to our retailers
and suppliers and it will not have any impact on the way we bring
products to market, service our retailers or manufacture goods.
It's our intention that Simmons will be a stronger and more
financially sound company as a result."

Mr. Fendrich continued, "This past year has been difficult for the
entire bedding industry.  However, the steps that we're taking now
will allow Simmons to remain an industry leader. Our marketing and
product development fundamentals are extremely sound; they've
carried us through 11 consecutive quarters of growth that have
outpaced the industry and helped Simmons to gain market share."

Simmons will continue its tradition of innovation with the launch
of several new products and retail marketing concepts at the Las
Vegas Furniture Market in February.

Simmons has said it plans to work with its various stakeholders to
design and implement the restructuring in a manner that maximizes
value and preserves and protects its relationships with customers
and suppliers.

On December 10, 2008, Simmons company's subsidiaries, Simmons
Bedding company, THL-SC Bedding company and certain subsidiaries
of Simmons Bedding party to its senior credit facility, entered
into the Second Forbearance Agreement; Third Amendment to the
Second Amended and Restated Credit and Guaranty Agreement and
First Amendment to the Pledge and Security Agreement with its
senior lenders and Deutsche Bank AG, as a senior lender and
administrative agent for the senior lenders.

As of December 9, 2008, the aggregate principal balances of the
company's loans and aggregate face amount of its letters of credit
were:

    Tranche D Term Loans                 US$465,000,000
    Revolving Loans                         $64,532,384
    Letters of Credit                       $10,427,327

The company and each Credit Party agree that as of December 9, the
aggregate amount of accrued and unpaid interest on the Tranche D
Term Loans and Revolving Loans is US$3,931,276, and the accrued
and unpaid commitment fees payable pursuant to the Credit
Agreement is US$65.87 and the accrued and unpaid letter of credit
fees payable is US$42,540.  The amounts do not include other fees,
expenses and other amounts which are chargeable or otherwise
reimbursable under the Credit Agreement and the other Credit
Documents.  None of the company and the other Credit Parties have
any rights of offset, defenses, claims or counterclaims with
respect to any of the Obligations and each of the Credit Parties
are jointly and severally obligated with respect thereto, in
accordance with the terms of the Credit Documents.

Pursuant to the Second Forbearance Agreement, Simmons covenants
with the lenders not to permit:

  (i) the sum of the Cash and Cash Equivalents of the company
      and all of its Domestic Subsidiaries at the close of
      business on any Business Day to be less than US$2.5 million
      on any two consecutive Business Days; or

(ii) the average Daily Cash Balance for any five consecutive
      Business Days to be less than US$7.5 million.

The company will deliver to the Agent commencing with the week of
December 15, 2008, a report of the Daily Cash Balances as a
consolidated number for each Business Day of the preceding week,
certified by the company's chief financial officer or other
financial officer of the company that is a Responsible Officer.

The company is also required to deliver a long-term business plan
approved by the company's Board of Directors to the Agent by no
later than January 7, 2009, which will include (i) forecasted
consolidated balance sheets -- assuming a static capitalization --
and forecasted consolidated statements of income and cash flows of
the company and its Subsidiaries for the next succeeding 3 Fiscal
Years, together with an explanation of the material assumptions on
which such forecasts are based and (ii) forecasted consolidated
statements of income and cash flows of the company and its
Subsidiaries for each month of the Fiscal Year ending in 2009,
together with an explanation of the material assumptions on which
such forecasts are based.

The company was to commence on January 9, 2009, distribution of
marketing materials to solicit potential debt or equity
investments.  On or before January 26, 2009, the company is
required deliver a potential restructuring proposal approved by
the company's Board of Directors to the Agent.

A full-text copy of the Second Forbearance Agreement is available
at no charge at:

             http://ResearchArchives.com/t/s?3642

Headquartered in Atlanta, Georgia, Simmons company --
http://www.simmons.com/-- is a mattress manufacturer and marketer
of a range of products through its indirect subsidiary Simmons
Bedding company.  Products includes Beautyrest(R), Beautyrest
Black(TM), ComforPedic by Simmons(TM), Natural Care(TM),
BackCare(R), Beautyrest Beginnings(TM) and Deep Sleep(R).  Simmons
Bedding company operates 21 conventional bedding manufacturing
facilities and two juvenile bedding manufacturing facilities
across the United States, Canada and Puerto Rico.  Simmons also
serves as a key supplier of bedding to hotel groups and resort
properties.



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

*VENEZUELA: Fitch Lowers Issuer Default Ratings to 'B+'
-------------------------------------------------------
Fitch Ratings has downgraded the Bolivarian Republic of
Venezuela's Long-term Foreign and Local currency Issuer Default
Ratings (IDRs) to 'B+' from 'BB-'.

The Ratings Outlook for both IDRs is Stable. Fitch has also
lowered the Country Ceiling rating to 'B+' from 'BB-'. The Short-
term foreign currency IDR is affirmed at 'B'.

In addition, the following individual bond ratings are downgraded:

  --Global uncollateralized foreign currency bonds to 'B+/RR4'
    from 'BB-';

  -- Local currency uncollateralized bonds to 'B+/RR4' from 'BB-';

  -- Collateralized USD Par and Discount Brady bonds to 'BB-/RR3'
     from 'BB/RR3';

  -- Collateralized foreign currency (DEM) Discount Brady bonds to
     'BB/RR2' from 'BB+/RR2';

  -- Collateralized foreign currency (DEM, FRF, CHF) Par Brady
     bonds to 'BB/RR2' from 'BB+/RR2';

  -- Collateralized foreign currency (ITL) Par Brady bonds to 'BB-
     /RR3'from 'BB/RR3'.

The downgrade reflects an increased risk of financial and economic
crisis in Venezuela due to its tenuous macroeconomic policy
framework and Fitch's concerns that a timely adjustment may not be
forthcoming, particularly within the context of upcoming electoral
events.  As political considerations have guided economic policy
choice in recent years, Fitch is concerned that electoral
processes in 2009 and 2010 will deter the government from making
difficult policy choices to address current macroeconomic
imbalances.

'The economy's dependence on oil revenues, high inflation and an
overvalued fixed exchange rate increase the challenges for
authorities to adjust to a low oil price environment,' said Erich
Arispe, Associate Director in Fitch's Sovereign Group.

In light of increased fiscal and quasi-fiscal expenditures as well
as over-execution of central government expenditures, which has
averaged 30% since 2006, the government's ability to implement
counter-cyclical policies under a low oil price scenario without
using its considerable financial assets is limited.  Moreover,
oil-revenues account for 50% of central government revenues and
'the volatility of fiscal revenues is high even when compared to
oil exporters such as Azerbaijan and Nigeria, thus, increasing the
risk of a severe fiscal account deterioration in the absence of
expenditure adjustments,' said Arispe.

Venezuela has the highest inflation rate among non-investment
sovereigns rated by Fitch, in part reflecting the government's
heterodox anti-inflationary policy response, the growing mismatch
between aggregate demand and domestic supply, as well as the
spread between the official and parallel market exchange rate. In
addition to negatively affecting medium-and long-term growth
prospects, the already high level of inflation, forecast to reach
31% by year-end, could delay the use of devaluation as a tool to
improve fiscal accounts due to its economic and political costs.

On the external front, lower oil prices, increased inelasticity of
imports to cover shortages of basic products, devaluation and the
transfer of reserves to discretionary and opaque funds could lead
to a rapid deterioration of external solvency and liquidity
indicators despite capital controls.  Fitch expects Venezuela to
revert to a net public external debtor in 2009, while most 'BB'
credits will remain net creditors. In addition, the country's
international liquidity could fall below the 'BB' median by 2010.
In Fitch's view, the country should maintain higher levels of
liquidity to support creditworthiness, given Venezuela's oil
dependency, which causes an elevated degree of balance of payments
volatility relative to peers.

However, Venezuela's comparatively low government debt burden and
manageable government debt maturity profile, as well as an
accumulated USD18 billion in liquid external financial assets in
addition to international reserves of USD38 billion, provide near-
term cushion to lower oil prices and support Venezuela's 'B+'
ratings.  Government debt maturities, at 2% of GDP in 2008, are
forecast to decline to less than 1% of GDP over our forecast
horizon.

Mounting macroeconomic pressures, if not addressed, could result
in a severe and disorderly economic adjustment, thus, adversely
affecting the sovereign's capacity to service debt.  A greater
than anticipated deterioration of the country's fiscal and balance
of payments position could also put downward pressure on
Venezuela's ratings.  Conversely, Venezuela's creditworthiness
could strengthen if a sustainable and coherent policy response
were implemented to reduce its vulnerability to oil price
fluctuations and thus the volatility of overall macroeconomic
performance.



* VENEZUELA: Flying V Interested in Oil
---------------------------------------
Flying V is in talks with the Venezuelan government for its supply
of refined fuel requirements, Paul A. Isla of Business Mirror
reports, citing Flying V CEO Paul Tanjutco.  “The talks with the
Venezuelan government focuses on the Venezuelan oil that is
refined in China and to be made available to us [in the
Philippines],” Mr. Tanjutco was quoted by the report as saying.

The report relates Mr. Tanjutco said if the deal push through,
they would have cheaper oil to sell and could pass on their
savings to the consumer.

Manuel Perez Iturbe, Venezuelan charge d'affaires, on the other
hand, said his government plans to supply the Philippines some of
its fuel requirements under the same preferential oil prices they
have offered to their other partner-countries, the report says.

According to the report, Venezuela has made preferential tariff or
pricing available to the poor people of Massachusetts, in the
Bronx in New York, and Chicago, Illinois.  “[Preferential pricing]
is the Venezuelan government's way of establishing relations with
countries like the US, Spain, Portugal, Russia, Libya and Iran.
Now we are also offering this to countries like China, India,
Indonesia, Malaysia, Singapore and the Philippines,”  the report
cited Mr. Iturbe as saying.

Mr. Iturbe also said they have already made available in the
Philippines Citgo Petroleum Corp.'s lubricants, the report notes.

Flying V -- http://www.flying-v-gas.com/-- is a Philippine
petroleum company.



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

* GM & Chrysler Default Risk Hinges on Government Action, S&P Says
------------------------------------------------------------------
Standard & Poor's Ratings Services said that, in light of the U.S.
Senate's rejection last night of an emergency loan package for
General Motors Corp. and Chrysler LLC, the risk of default by one
or both of these companies over the next few months remains very
high.  The Bush Administration said it will consider using funds
earmarked for the financial industry stabilization package to
support the U.S. automakers' near-term liquidity needs.  The U.S.
Treasury said it stands ready to prevent an imminent failure of
the automakers.  However, the Treasury has not yet indicated how
the automakers can access the funding provided through the
Troubled Asset Relief Program, or TARP.

It is also uncertain where TARP loans would stand in the automaker
capital structure.  Ford Motor Co. is not currently seeking
federal loans, primarily because it has a large unused bank
facility.  The current ratings on all three automakers already
reflect their high default risk and are therefore not changed by
the U.S. Senate vote.

S&P applies ratings in the 'CCC' category to companies that are
highly likely to default on a debt payment and that depend on
multiple factors beyond their control to meet their financial
commitments.  The 'CC' rating on GM reflects these risks, as well
as the company's stated intention that it will seek to reduce its
current debt burden by more than half as it attempts to reduce
cash outflows and win support for the U.S. government-backed
loans.  S&P believes the most likely scenario is that GM will
offer to exchange some or all of its outstanding debt for equity
or new debt at a steep discount to face value.  Given GM's
weakening liquidity position, S&P considers such an offer to be a
distressed exchange and, as such, is tantamount to a default.

In S&P's view, the catalyst for a GM or Chrysler bankruptcy in the
very near term is unchanged: liquidity dropping below the minimum
levels needed to operate their capital-intensive vehicle
manufacturing businesses.  The automakers ordinarily make
substantial payments to their suppliers early each month, and S&P
believes the several billion dollars in outlays expected during
the first few days of January 2009 could use up a substantial
portion of both companies' respective cash balances, unless U.S.
government support of some kind is forthcoming or the suppliers
defer these payments.  Consumer demand in the U.S. and other key
markets has only worsened since these companies first said they
might not have enough cash to support operations into early next
year.  In addition, S&P believes concerns about bankruptcies have
added to the declines in GM's and Chrysler's sales and therefore
heightened their cash use.

In addition, S&P remains concerned about the spillover effects of
an automaker failure on the North American parts suppliers.  Many
important suppliers sell parts to more than one automaker, and as
S&P has stated previously, if GM or Chrysler should file for
bankruptcy, withhold payments to suppliers, or be forced to halt
operations, the repercussions to the suppliers would be dramatic.
S&P placed 15 suppliers on CreditWatch with negative implications
on Nov. 13, 2008, as a result of their significant exposure to the
Michigan-based automakers.

Ford's liquidity remains materially better than that of the other
two Michigan-based automakers.  However, if GM or Chrysler were to
file for bankruptcy, Ford may have to use its liquidity to keep
its supply base intact.

S&P's recovery ratings on U.S. automaker debt are based on the
assumption of a bankruptcy filing, multi-year reorganization, and
eventual emergence.  These ratings are not affected by the
developments.  Expected recovery prospects for secured and
unsecured debtholders vary by automaker, largely reflecting the
company-specific mix of secured and unsecured debt in the capital
structure rather than vastly different fundamentals for each
company.

                         Ratings List

                     General Motors Corp.

        Corporate Credit Rating          CC/Negative/--

        Senior Secured                   CCC
          Recovery Rating                1

        Senior Unsecured                 CC
          Recovery Rating                4

                         Ford Motor Co.

       Corporate Credit Rating           CCC+/Negative/--

        Senior Secured                   CCC+
          Recovery Rating                3

        Senior Unsecured                 CCC-
          Recovery Rating                6

                        Chrysler LLC

       Corporate Credit Rating          CCC+/Negative/--

        Senior Secured
         US$7 bil. first-lien term bank ln
         due 2013                        B
          Recovery Rating                1

         US$2.0 bil. second-lien bank ln
          due 2014                        CCC+
           Recovery Rating                4


                            ***********

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

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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.


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