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        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, June 7, 2006, Vol. 7, Issue 112


                         Headlines


A R G E N T I N A

FIDEICOMISO: Moody's LatAm Puts B2 Rating on Class A Certs.

B E R M U D A

GLOBAL CROSSING: Inks Accord with Broadwing Communications
GLOBAL CROSSING: Launches VoIP Community Peering Service
INTELSAT: Inks Accord with Falcon to Distribute Ampiage Service

B O L I V I A

COEUR D'ALENE: Concludes Sale of 100% Stake in Silver Valley

B R A Z I L

BANCO NACIONAL: Considers BRL1.5-Mil. Funding to Honey Producers
LOCALIZA RENT A CAR: S&P Affirms BB- Currency Credit Ratings
MRS LOGISTICA: Posts BRL98 Mil. First Quarter 2005 Net Income
PETROLEO BRASILEIRO: Coari-Manaus Pipeline Construction Begins
PETROLEO BRASILEIRO: Will Work with PVSA to Explore for Oil

VARIG SA: Plane Seized After Missing US$1.8M in Lease Payments

C A Y M A N   I S L A N D S

BREADFRUIT INVESTMENTS: Shareholders Meeting Set for July 17
CAMBIUM CAPITAL: Proofs of Claim Must be Filed by June 16
CYRUS OPPORTUNITIES: Last Day to File Proofs of Claim Is June 22
CYRUS OPPORTUNITIES MASTER: Proofs of Claim Filing Ends June 22
FIDELIS INVESTMENTS: Last Day to File Proofs of Claim Is July 12

IZUMIGAOKA INVESTORS: Creditors Must File Claims by June 15
LATIN AMERICA ENT: Claims Filing Deadline Is June 11
QUARTZ FINANCE: Creditors Must Submit Claims by June 15
REDWOOD CAPITAL III: Proofs of Claim Filing Deadline Is June 29
REDWOOD CAPITAL IV: Proofs of Claim Must be Filed by June 29

SCALA ADVISORS: Creditors Must Submit Claims by June 11
SHINJUKU INVESTORS: Creditors Must File Claims by June 15
STINGRAY CAPITAL: Last Day to File Proofs of Claim Is June 29
TCR SOUTH AMERICA: Creditors Must Submit Claims by June 14
VARIASIAN DEVELOPMENT: Creditors Must File Claims by June 16

VARIASIAN OPERATIONS: Creditors Must File Claims by June 16
VIALTA INT: Last Day to File Proofs of Claim Is June 29

C O L O M B I A

* COLOMBIA: Fitch Revises Outlook on BB Issuer Rating to Pos.
* COLOMBIA: Reaches Agreement on Free Trade Accord with US

C O S T A   R I C A

* COSTA RICA: Residents Against Commercial Center Construction

D O M I N I C A N   R E P U B L I C

AES CORP: Executive Ned Hall Joins Wind Energy Association Board

* DOMINICAN REPUBLIC: US Affirms New Laws Needed for Free Trade

J A M A I C A

KAISER ALUMINUM: Asks Court to Approve American Settlement Pact
KAISER ALUMINUM: Wants Los Angeles Pension Plan Terminated

M E X I C O

COPAMEX SA: Fitch Affirms BB- Senior Unsecured Currency Ratings
GRUPO MEXICO: Cananea Mine Operations Continue Despite Strike
INT'L PAPER: To Sell Unit to Apollo Management for US$1.4 Bil.
MERIDIAN AUTOMOTIVE: Funding & Treatment of Claims Under Plan
MERIDIAN AUTOMOTIVE: Lazard's Valuation Analysis Under Plan

TAG IT PACIFIC: Posts US$729,403 Net Loss in First Qtr. 2006
UNITED RENTALS: Earns US$43.7 Million in Quarter Ended March 31
VITRO: Awards US$2.5 Million Networking Contract to AT&T Inc.

P A N A M A

* PANAMA: Posts Fiscal Year 2006 Second Quarter Canal Metrics

P A R A G U A Y

TELECOM PERSONAL: Will Invest US$12 Million to Expand Network

* PARAGUAY: IMF Approves US$97 Mil. Loan to Spur Economic Growth

P E R U

* PERU: New President Aims to Increase Trade Ties with US
* PERU: S&P Says Garcia's Election Won't Affect Low B Ratings

P U E R T O   R I C O

ADELPHIA COMMS: Plan Voting Deadline Extended Until June 19
GLOBAL HOME: Panel Taps Lowenstein Sandler as Bankruptcy Counsel
GLOBAL HOME: Units File Schedules of Assets & Liabilities
KMART CORP: Big Beaver Settles LaSalle Bank's Claim for US$22MM
KMART CORP: More Than 50 Creditors Withdraw Proofs of Claim

MUSICLAND HOLDING: Court OKs Expedited Lease Rejection Process
SUNCOM WIRELESS: March 31 Stockholders' Deficit Tops US$228 Mil.

T R I N I D A D   &   T O B A G O

MIRANT: DOE & EPA Order Offer How to Boost Potomac River Ops
MIRANT CORP: Pirate Capital Questions NRG Energy Bid

U R U G U A Y

BANCO ITAU (URUGUAY): Fitch Revises Ratings Outlook to Positive
NUEVO BANCO: Advent International Completes Acquisition of Bank

V E N E Z U E L A

PETROLEOS DE VENEZUELA: Will Spend US$1.4B for Oil Exploration

* Jeffery J. Stegenga Joins Alvarez & Marsal as Managing Dir.
* SEC Historical Society Elects A&M's Barratt to Trustees Board



                         - - - - -


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A R G E N T I N A
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FIDEICOMISO: Moody's LatAm Puts B2 Rating on Class A Certs.
-----------------------------------------------------------
Moody's Latin America assigned a national scale rating of Aa3.ar
and a global local currency rating of B2 to the Class A
Certificates of Fideicomiso Financiero Montemar III.  The
certificates were issued by Banco Supervielle S.A. acting solely
in its capacity as issuer and trustee. Moody's also assigned a
national scale rating of Baa2.ar and a global local currency
rating of B3 to the Class B Certificates.  The Class C
Certificates are not rated by Moody's.

Moody's said the ratings are based on:

      1) the strength of the underlying receivables, comprised
         by a pool of personal loans originated by Montemar
         Compania Financiera S.A., a non-bank, niche finance
         company in Argentina;

      2) the structure of the transaction, which has the benefit
         of a sequential payment structure;

      3) the available excess spread;

      4) the size of the reserve fund funded with two months of
         interest on the Class A and B; and

      5) the 20% subordination for the benefit of the Class A
         certificates and 10% subordination available for the
         benefit of the Class B certificates.

The level of credit enhancement available in this transaction is
lower than the credit enhancement available for the first two
transactions issued by Montemar I and Montemar II.

Collateral

The personal loans in this pool were originated by Montemar
Compania Financiera S.A., a non-bank, niche finance company,
located in Argentina.  About 55% of the securitized pool will be
comprised of personal loans granted to employees of the
Government of the Province of Mendoza pursuant to an agreement
with Banco de la Nacion Argentina, under which the monthly loan
installment is automatically deducted from the borrower's bank
account at BNA.  Moody's believes that these collection
procedures decrease considerably the frequency of default at the
borrower's level.

The other part of the pool includes personal loans granted to
borrowers that meet Montemar's standard underwriting criteria,
but it does not benefit from automatic deduction of loan
payments from the borrower's bank account, Moody's said.

Among the main credit risks, Moody's cites the Province of
Mendoza's ability to delay money transfers to BNA and the risk
that the province may not pay salaries because of liquidity or
budget restrictions, as a result affecting a large number of
individual obligors.  However, this factor was taken into
account in its analysis, the agency said.

Structure

Banco Supervielle S.A. issued two classes of peso-denominated
certificates (Class A and B) and a residual piece (Class C).
Class A and B will constitute 80% and 10% of the original bond
balance, respectively.

The fixed-rate Class A Certificates will bear an annual interest
rate of 13% and the Class B Certificates will bear a floating
interest rate plus 600 basis points.  The interest rate payable
on the Class B Certificates is subject to a floor of 15% and a
ceiling of 19%.  Class C is entitled to receive any amounts
remaining after the Class A and B certificates are fully paid
off.

The transaction uses a senior-subordinated, sequential pay
structure. Class A and Class B investors are promised timely
interest payments and ultimate payment of principal on or before
legal final maturity.  The promise to Class C investors is to
receive only principal on or before legal final maturity, but
after Class A and B are paid in full.

Credit enhancement available in this transaction includes:

      i) 20% subordination for the Class A at closing,
     ii) 10% subordination for the Class B
    iii) the available excess spread and
     iv) the equivalent of 2 months of interest payments for
         Classes A and B in a reserve account.

Montemar Compania Financiera S.A. is a non-bank, niche finance
company in Argentina that specializes in providing financial
services to government employees, and auto loans and credit
cards to the general public. Montemar is also the primary
servicer of this transaction.

Issuer: Fideicomiso Financiero Montemar III

      -- ARS10,556,853 Pesos in Fixed Rate Class A Certificates
         of "Fideicomiso Financiero Montemar III", rated Aa3.ar
         in the Argentine National Scale and B2 in the Global
         Local Currency Scale.

      -- ARS1,319,607 Pesos in Floating Rate Class B
         Certificates of "Fideicomiso Financiero Montemar III",
         rated Baa2.ar in the Argentine National Scale and B3 in
         the Global Local Currency Scale.

Issuer: Fideicomiso Financiero Montemar III

      -- CPA, Assigned B2
      -- CPB, Assigned B3




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


GLOBAL CROSSING: Inks Accord with Broadwing Communications
----------------------------------------------------------
Global Crossing Ltd. entered into an agreement with Broadwing
Communications, LLC, a consolidated subsidiary of Broadwing
Corporation, to expand the global availability of the Layer 3
MPLS component of the latter's converged services VPN suite.

With the demand for Layer 2 and Layer 3 MPLS services continuing
to increase, Broadwing's converged offering allows businesses to
meet their growing network needs worldwide.  Due to the Global
Crossing accord, Broadwing's international coverage for
converged services now encompasses most of the world's major
business centers in Africa, Asia, Australia, Europe, North
America and South America.

"Before selecting Global Crossing, Broadwing conducted extensive
research with multiple carriers to select the best option for
this expansion.  Our agreement with Global Crossing further
actualizes our successful international best-of-breed multi-
supplier strategy, which we believe provides our customers with
unsurpassed route diversity, network stability, access options,
economy and in-country expertise," said Scott Widham, co-chief
executive officer of Broadwing.

Global Crossing, a worldwide provider of IP voice, video and
data services, increases the number of countries in which
Broadwing can now offer converged services.  Global Crossing
operates one of the world's largest global networks, delivering
services to more than 600 cities in 60 countries and six
continents.

"As the telecommunications industry continues to evolve,
services providers are seeking partners who complement their
assets and capabilities.  We are pleased that this agreement
allows us to continue our longstanding relationship with
Broadwing and to be a key supporter of their international
service strategy," said Ted Higase, Global Crossing's executive
vice president of worldwide carrier services.

                  About Broadwing Corporation

Broadwing Corporation -- http://www.broadwing.com-- delivers
innovative data, voice, and media solutions to enterprises and
service providers through its consolidated subsidiary Broadwing
Communications, LLC.

                     About Global Crossing

Headquartered in Florham Park, New Jersey, Global Crossing
Ltd. -- http://www.globalcrossing.com/-- provides
telecommunication services over the world's first integrated
global IP-based network, which reaches 27 countries and more
than 200 major cities around the globe including Bermuda,
Argentina, Brazil, Chile, Mexico, Panama, Peru and Venezuela.
Global Crossing serves many of the world's largest corporations,
providing a full range of managed data and voice products and
services.  The company filed for chapter 11 protection on
Jan. 28, 2002 (Bankr. S.D.N.Y. Case No. 02-40188).  When the
Debtors filed for protection from their creditors, they listed
US$25,511,000,000 in total assets and US$15,467,000,000 in total
debts.  Global Crossing emerged from chapter 11 on Dec. 9, 2003.

As of Dec. 31, 2005, Global Crossing's balance sheet reflected a
US$173 million equity deficit compared to a US$51 million of
positive equity at Dec. 31, 2004.


GLOBAL CROSSING: Launches VoIP Community Peering Service
--------------------------------------------------------
Global Crossing launched the VoIP Community Peering, another
industry-leading enhancement to its Voice over Internet Protocol
or VoIP services.

VoIP Community Peering creates an extranet community for
enterprises and their various business partners -- like
suppliers, manufacturers and distributors in a supply chain --
that experience high call volumes.  Through VoIP Community
Peering, enterprise business associates enjoy the cost benefits
of migrating to a full on-net VoIP solution without implementing
a private number dialing plan.

VoIP Community Peering also creates intranet communities for
geographically dispersed intra-company locations and remote
office locations that prefer not to develop a centralized
private corporate numbering plan.

Global Crossing VoIP Community Peering(TM) provides Global
Crossing VoIP Outbound and VoIP On-Net Plus customers with
usage-free VoIP calling to all Global Crossing VoIP Local
Service end points. This feature offers enterprises even more
value as they move to an all-IP environment over Global
Crossing's converged IP network.

"Global Crossing continues to lead the industry with its VoIP
portfolio, as we enable end-to-end VoIP call completions across
our network.  VoIP Community Peering enables communications
efficiencies for extranet partners and communities of interest
such as supply chains, business partners and affinity groups,
and it requires no special provisioning or dial plan
management," said Anthony Christie, Global Crossing's chief
marketing officer.

Global Crossing now offers customers increased cost efficiencies
when VoIP calls are completed on the Global Crossing network.
This creates an extranet peering community that operates like a
private internal voice network, allowing peering community
members to call any phone number provisioned as a Global
Crossing VoIP local service number and avoiding standard Public
Switched Telephone Network or PSTN off-net usage charges.  The
peering community includes all Global Crossing VoIP Local
Service(TM) numbers across an enterprise's internal locations
and extends to calls placed to external parties who are Global
Crossing VoIP Local Service customers.

"VoIP Community Peering establishes a new milestone for
organizations along the pathway to an all-IP world.  Global
Crossing's VoIP Community Peering enables firms to create VoIP
extranets, or communications communities that cut across and
between organizations' traditional networks.  This VoIP VPN
functionality improves communications between companies by
establishing logical on-net points within a defined network
community while lowering costs," Bryan Van Dussen, director of
service provider research at In-Stat, said.

Global Crossing's pricing model currently provides customers a
fixed monthly recurring charge per simultaneous session
required, plus a discounted cost per minute for all calls
terminating through the PSTN.  With VoIP Community Peering,
cost-per-minute charges are not applied if calls are destined
for a national or international number served by Global Crossing
VoIP Local Service.

Global Crossing VoIP Service is generally available in most
commercial centers throughout North America and Europe.  VoIP
expansion will continue in these eight markets currently served
by Global Crossing's traditional voice services:

  -- Austria,
  -- the Czech Republic,
  -- Finland,
  -- Greece,
  -- Hungary,
  -- Poland,
  -- Portugal, and
  -- Slovakia.

Global Crossing VoIP Services are also planned for:

  -- Mexico,
  -- Hong Kong,
  -- Singapore, and
  -- Australia.

Global Crossing now transports more than 2.4 billion VoIP
minutes per month, and VoIP traffic accounted for 74% of all
voice traffic transported by Global Crossing in the first
quarter of 2006.  IP traffic on Global Crossing's global IP
backbone increased 65% in 2005 and grew 26% in the first quarter
of 2006.

                    About Global Crossing

Headquartered in Florham Park, New Jersey, Global Crossing
Ltd. -- http://www.globalcrossing.com/-- provides
telecommunication services over the world's first integrated
global IP-based network, which reaches 27 countries and more
than 200 major cities around the globe including Bermuda,
Argentina, Brazil, Chile, Mexico, Panama, Peru and Venezuela.
Global Crossing serves many of the world's largest corporations,
providing a full range of managed data and voice products and
services.  The company filed for chapter 11 protection on
Jan. 28, 2002 (Bankr. S.D.N.Y. Case No. 02-40188).  When the
Debtors filed for protection from their creditors, they listed
US$25,511,000,000 in total assets and US$15,467,000,000 in total
debts.  Global Crossing emerged from chapter 11 on Dec. 9, 2003.

As of Dec. 31, 2005, Global Crossing's balance sheet reflected a
US$173 million equity deficit compared to a US$51 million of
positive equity at Dec. 31, 2004.


INTELSAT: Inks Accord with Falcon to Distribute Ampiage Service
---------------------------------------------------------------
Intelsat signed an agreement with Falcon Communications, Inc., a
provider of integrated services to US-operated telecommunication
companies or telcos, for the distribution of Ampiage --
Intelsat's satellite-based MPEG-4 video, open-architecture,
transport service -- to telcos and other multichannel system
operators in North America.

Falcon Communications will distribute Ampiage to approximately
800 US telcos it currently serves, offering them an entry point
into the IPTV, MPEG-4 and triple play markets.  Ampiage, which
centralizes the aggregation, processing and distribution of
fully digital audio and video content from the US, enables
telcos to bundle an attractive standard and high definition
programming package with voice and broadband services without
incurring significant upgrade or start-up costs.

Donald Cook, Chief Executive Officer of Falcon Communications,
stated, "Distributing Ampiage is an avenue for us to offer our
large customer base enhanced value and new opportunities, all at
significant cost-savings and maximum flexibility with regard to
equipment and services.  As an even bigger value-add, we have a
fully-integrated, tested and pre-configured MPEG-4 end-to-end
system, from Intelsat's satellite through to the set top box,
which we can deliver, install and maintain for those operators
who need it."

"Both Falcon Communications and Intelsat have decades of
experience serving telco customers, in the US or abroad, which
gives us both a unique understanding of this customer set, as
well as the risks and challenges their businesses face.  The
convergence of technology is opening new doors for traditional
telcos and is putting pressure on them to offer more value to
consumers, including video content, in order to effectively grow
and compete.  Falcon Communications can offer that value to them
through the use of Ampiage, which is a cost-effective catalyst
to their video market entry," said Stephen Spengler, Intelsat's
Senior Vice President, Sales and Marketing.

Intelsat is a global communications provider offering flexible
and secure services to customers in over 200 countries and
territories.  Intelsat has maintained a leadership position for
over 40 years by distributing video, voice, and data for
television and content providers, government and military
entities, major corporations, telecommunications carriers, and
Internet service providers.

                        *    *    *

As reported in the Troubled Company Reporter on April 28, 2006,
Fitch currently has Intelsat and its subsidiaries' debt on
Rating Watch Negative, and rated its debt as follows:

   Intelsat, Ltd.

     -- Issuer default rating: B-
     -- Senior unsecured notes: CCC/RR6

   Intelsat (Bermuda), Ltd.

     -- Senior unsecured discount notes: B-/RR4

   Intelsat Subsidiary Holding Company Ltd.

     -- Senior secured credit facilities: BB-/RR1
     -- Senior unsecured notes: B+/RR2




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B O L I V I A
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COEUR D'ALENE: Concludes Sale of 100% Stake in Silver Valley
-------------------------------------------------------------
Coeur d'Alene Mines Corporation concluded the sale of 100% of
its shares in Coeur Silver Valley aka CSV to U.S. Silver
Corporation for US$15 million, M2 Presswire relates.

As reported in the Troubled Company Reporter on April 12, 2006,
Coeur d'Alene entered into an agreement to sell 100% of the
shares of Coeur Silver Valley, a wholly owned unit of the
company, to U.S. Silver.  The sale was contingent upon customary
closing conditions like U.S. Silver Corporation's arrangements
for financing, approval by the board of directors of Coeur
d'Alene, and completion of final documentation.  Coeur and U.S.
Silver Corporation would work together to ensure continuity of
operations during the transition period.

Coeur expects that the transaction would lead to a US$10-12
million one-time pre-tax gain in the second quarter of 2006, M2
Presswire states.

Coeur d'Alene Mines Corporation -- http://www.coeur.com/-- is
the world's largest primary silver producer, as well as a
significant, low-cost producer of gold.  The Company has mining
interests in Nevada, Idaho, Alaska, Argentina, Chile, Bolivia
and Australia.

                        *    *    *

Coeur d'Alene Mines Corporation's US$180 Million notes due
Jan. 15, 2024, carry Standard & Poors' B- rating.




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B R A Z I L
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BANCO NACIONAL: Considers BRL1.5-Mil. Funding to Honey Producers
----------------------------------------------------------------
Demian Fiocca, the president of Banco Nacional de
Desenvolvimento Economico e Social aka BNDES, said that the bank
is studying whether it would provide BRL1.5 million in non-
reimbursable funds taken from the Social fund formed by a
portion of the bank's profits to finance the project for
optimizing and consolidating the honey production and exports of
the Association of Apiculturists of Simplicio Mendes Microregion
aka AAPI.

The analysis happens in the ambit of the Program for Collective
Productive Investments or Proinco created by BNDES in 2005 to
support investment projects made by associations, foundations or
cooperatives, to the benefit of:

  -- workers,
  -- producers,
  -- and/or domestic enterprises

with collective operation, and are able to influence strongly
the economic and social development of the region, the sectors,
and the community involved, with emphasis in less developed
locations.

The AAPI's project will benefit 930 low-income small producers
in 30 communities of the microregion.  For a total investment of
BRL1.9 million, of which 79% may be provided by BNDES, the
project funds the:

  -- construction of a labor formation center, dedicated to the
     qualification of personnel for apiculture, and

  -- reformation of honey gathering houses and investments in
     equipment.

With the creation of Proinco, BNDES intends to increase its
social investments in the poorer areas of Brazil, among which
various Northeast locations.  The idea is that it should be made
by means of collective investments, which are those which
property is shared by a group of enterprises or producers, to
the benefit of a great number of endeavors in a region or
locality.

With Proinco, a portion of the financing may be made using the
non-reimbursable funds from the Social Fund, in proportions
stipulated depending upon the income level and economic dynamism
of the place where the project will be implemented, and upon the
investment's characteristics.  For less economically developed
municipalities, the portion reaches 80% of the project's total
investment, limited to BRL1.5 million.

Both the reimbursable portion and the non-reimbursable one are
directly contracted with BNDES, entailing a direct operation.
However, the conditions are differentiated in relation to other
BNDES financing lines.

The guarantees required are at least 100% of the amount financed
with reimbursable funds.  Additionally, the non-reimbursable
portion may contribute to the constitution of guarantees.

The total time period of the operation, determined in function
of the beneficiary's payment capacity, may reach 10 years.  As
to the level of participation, the client matches at least 5% of
the total subject to support, in those operations having the
intervention of a strategic partner, and 10% of the total
subject to support for other operations.

The strategic partner should be a private or public legal
entity, which will be in charge of fostering and structuring
collective investment projects, mainly in low-income and low
growth regions, and send them to BNDES.  The strategic partner
should also be present during the monitoring visits held by the
bank, in addition to preparing project performance reports.

These are the activities that Proinco will support:

  -- Investments for implementation, expansion, restoration,
     and/or modernization of technological centers, labor
     formation centers and other collective investments allowing
     for escalating gains, access to new markets, increase in
     competitive advantage and offer of specialized services.

  -- Acquisition of new machinery and equipment, of domestic
     origin, or imported, in case of inexistence of a domestic
     similar.

  -- Expenses with:

      * studies,
      * engineering projects,
      * working capital associated to the investment, and
      * qualification of people.

                        *    *    *

As reported in the Troubled Company Reporter on March 3, 2006,
Standard & Poor's Ratings Services raised its foreign currency
counterparty credit rating on Banco Nacional de Desenvolvimento
Economico e Social S.A. aka BNDES to 'BB' with a stable outlook
from 'BB-' with a positive outlook.  The company's local
currency credit rating was also shifted to 'BB+' with a stable
outlook from 'BB' with a positive outlook.


LOCALIZA RENT A CAR: S&P Affirms BB- Currency Credit Ratings
------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB-' local- and
foreign-currency corporate credit rating on Brazil-based car
rental company Localiza Rent a Car S.A.  The outlook is
positive.

"The ratings on Localiza reflect the company's somewhat more
aggressive recent growth strategy," said Standard & Poor's
credit analyst Beatriz Degani.  "This is particularly important
considering that the car rental industry is in  an early phase
of development in Localiza's home market, where the industry is
smaller and much more fragmented than it is in other, more
mature developed economies."

The ratings also reflect Localiza's exposure to volatile daily
car rental demand in Brazil, which bears a strong correlation
with the country's level of economic activity.  These risks are
partially offset by the company's dominant position in its home
market of Brazil, its strong brand name, its expertise in
weathering volatility, and the liquidity of its assets (cars),
which, with the company's sales channels, afford Localiza the
flexibility to rapidly adjust its fleet to demand.

With sales of US$386 million in the 12 months ended March 2006,
Localiza is the leading car rental company in Brazil (with an
approximately 18% market share), and it benefits from an
efficient distribution network with about 117 key locations in
the country.  The company's businesses include daily car rental
and fleet management -- segments that represented 50.3% and
38.6% of EBITDA, respectively, for the 12 months ended March
2006.  It also sells used rental cars as a way to renew its aged
fleet.  The well-balanced portfolio of these businesses allows
the company to generate strong cash flow.

Localiza's sales volume has been increasing substantially as a
result of the company's more aggressive growth expansion.  In
2005, the company posted 37% growth, after averaging 28.4% in
the past three years, and this is expected to remain strong in
2006.  Such performance was prompted by a strong demand, mostly
in the car rental segment (where there was a 38% increase) and
in the used-car sale businesses (which saw a 48% increase), both
of which benefited from a favorable economic environment in
Brazil.

The fleet management segment, an important contributor to the
company's EBITDA, had recently been flat, but it also posted a
strong 17% increase in 2005 after the company closed on new
contracts.  In S&P'S view, the long-term contracts in this
sector are important for the company's cash flow stability.

S&P expects Localiza to sustain its favorable performance with
its strategy of efficient and integrated vehicle management and
pricing policies.  These policies should defend the firm against
market volatility in the long term.

The company invested more in its fleet during 2005 to support
its growth.  The fleet size rose to a peak of 35,865 cars in
December 2005 (from 28,699 in December 2004).  This reflects
both the stronger economic environment in Brazil and the
company's strategy of transitioning its fleet to flex-fuel cars.
By the first quarter of 2006, the fleet had already declined to
32,311 cars as the company adapted to the demand; this allowed
Localiza to free up some working capital from its cars and
reduce short-term debt.  Because of the increase in the fleet
size in 2005, utilization rates at the company's car-rental
business declined, averaging 59% during the year, compared with
62% the previous year.  S&P expects this ratio to recover in
2006, rising as high as 65% as the company adjusts the fleet to
match demand.


MRS LOGISTICA: Posts BRL98 Mil. First Quarter 2005 Net Income
-------------------------------------------------------------
MRS Logistica S.A. reports BRL98.4 million of net income in the
first quarter of 2006, 7.3% higher than in the same quarter of
2005.  This quarter's net income was 6.6% lower than the one
reported in the fourth quarter last year.

MRS transported 25.0 million tons in the first quarter 2006,
10.3% than the volume transported in fourth quarter 2005 and
1.6% lower than first quarter 2005.

This reduction was basically due to the accident occurred at the
CSN's Blast Furnace 3 gas collection and treatment system in
Volta Redonda in Jan. 22, which caused a demand reduction of
approximately 1.7 million tons.

With the recovery of the regular operational level at CSN's
plant, which should take place in the beginning of the second
semester, MRS will retake its historical growth.

CSN has also been facing some difficulties to obtain the
environmental licenses, leading to some delay in the Casa de
Pedra Mine export project, which is very important to MRS. The
project is expected to start in the fourth quarter of the year.

Fuel and lubricant costs in the first quarter of 2006 increased
14.1% comparing to the first quarter of 2005 mainly as a
consequence of higher diesel prices (11.7%).

Up to March, material and service costs rose 18.1% and 14.8%,
respectively, when compared to the same period in 2005.  This
was caused by the anticipation of the maintenance program and
price increases.

Depreciation costs in the first quarter of 2006 increased 31.0%
comparing to first quarter of 2005 due to the investments
performed in 2005, mainly in permanent way, locomotives and
wagons.

EBITDA in the first quarter of 2006 reached BRL186.1 million,
11.9% below the figures conquered in the fourth quarter of 2005
and 2.2% above the figures from the first quarter of 2005 and
EBITDA margin held steady at 45.2%.

Operating income, before financial effects, totaled BRL154.9
million in the first quarter of 2006, down 15.3% from the fourth
quarter of 2005 and about 1.5% lesser than the first quarter of
2005.

Shareholders' equity amounted to BRL727.6 million in the first
quarter of 2006, 15.6% higher than the value recorded in the end
of 2005.

Net debt in the first quarter of 2006 reached BRL278.7 million,
2.3% higher than the BRL272.5 million recorded in the end of
2005.  The Net Debt/EBITDA (last 12 months) ratio was 0.35x,
stable when compared to the fourth quarter 2005.

The company's gross revenues in the first quarter of 2006 was
11.5% lower than that of the fourth quarter 2005, arriving at
BRL478.1 million.

The gross revenues were lower in than the last quarter in 2005
due to the reduction in transported volumes. When compared to
first quarter of 2005, total revenues increased 5.4%.

Capital expenditures totaled BRL69.3 million in the first
quarter of 2006.  The main purchases were:

  -- Bearing Acoustic Monitoring System
     Manufacturer: VIPAC

     With this system, it will be possible to detect material
     fatigue by its noise, reducing the non-operational train
     hours caused by gearings defects and eliminating serious
     accidents caused by bearings failures.

  -- Underground Wheel Lathe
     Manufacturer: Hegenscheidt

     This equipment will be used in a strategic stretch of the
     railway, producing a gain of approximately 20% in
     locomotive maintenance productivity.

  -- 1 Track Type Tractor and 2 Hydraulic Excavators
     Manufacturer: Komatsu

  -- Acquisition of 280 GDT wagons
     Manufacturer: Maxion

ANTT or the National Agency of Terrestrial Transportation,
through resolution number 1.396 of April 11, 2006, authorized
Ultrafertil S.A. to leave MRS Controlling Group and determined
that Companhia Vale do Rio Doce aka CVRD must sell its MRS's
ordinary shares acquired when CVRD incorporated Ferteco
Mineracao S.A. or, in case CVRD decides not to sell its shares,
renounce its right to veto and to vote as well as its right to
indicate counselors to MRS's Council.  This ruling aims at
equalizing the power relation among the economic groups
integrating MRS's Controlling Group.

Main deals and accomplishments in the first quarter of 2006 are:

   -- 22% rise in container transportation comparing to the
      first quarter of 2005.  From January to March, the company
      transported 30.5 thousand TEUs, against 25 thousand in the
      same period of 2005.  Sepetiba-Vale do Paraiba and Rio de
      Janeiro-Belo Horizonte were the main routes responsible
      for this result.  Hamburg Sud, Semp Toshiba, Mercosul Line
      and Daimler Chrysler played an important role in this
      rise.

   -- Enlargement of the bauxite transportation contract with
      CBA aka Companhia Brasileira de Aluminio from the present
      130 thousand tons/month to 170 thousand tons/month, which
      represents a 30% increase.  This enlargement is a result
      of the expansion in CBA's production capacity.  To serve
      this demand increment, MRS and CBA will refurbish and add
      70 wagons to the fleet serving the aluminum company.

   -- Environmental license approval and start of work at
      Siderurgica Barra Mansa Unit, from the Votorantim Metais
      Group, which will enable the transportation of steel
      products and junk iron as from September 2006, with
      potential demand of 600 thousand tons/year.  MRS also
      started the investment to adequate and customize up to 90
      wagons to serve this client.

   -- Impressive transportation growth for the Soy Complex --
      soy and soy bran -- of 240% when compared to the first
      quarter of 2005, reaching the volume of more than 130
      thousand tons.  This flow serves Coinbra and Caramuru in
      their exports through the Port of Santos.

   -- Start of billets transportation for Gerdau Aracariguama,
      located at Sao Paulo with an average monthly volume of 12
      thousand tons.  The cargo is transported by trucks to
      Ipiranga Rail Terminal, where it is loaded on MRS's trains
      and follows to Gerdau Cosigua, located at Itaguai.

   -- Start of transportation to serve Vega do Sul, located at
      Sao Francisco do Sul (SC), from CST Unit in Vitoria.
      Integrated logistics including, besides MRS's services,
      two other railways, which became a new alternative for the
      plant supply.

   -- Increase in steel products volume transported for export
      through Port of Rio de Janeiro to Belgo-Arcelor Group,
      Piracicaba Unit, reaching the mark of 20 thousand tons.

   -- Start of utilization of adapted buckets for platform
      wagons (180 units) in the Junk Iron flow from Sao Caetano,
      making it possible to optimize the transportation through
      the return freight of steel products to Sao Paulo.

MRS Logistica operates 1,700km of track in Sao Paulo, Minas
Gerais, and Rio de Janeiro.  It primarily transports cargo for
major shareholders.

                        *    *    *

As reported on Nov. 10, 2005, Standard & Poor's Ratings Services
revised the outlook on the BB- long-term foreign currency rating
of MRS Logistica S.A. to positive from stable, following the
revision of the foreign currency outlook of the Federative
Republic of Brazil.


PETROLEO BRASILEIRO: Coari-Manaus Pipeline Construction Begins
--------------------------------------------------------------
Petroleo Brasileiro aka Petrobras, a Brazilian international
energy company, has begun work on the Coari-Manaus gas pipeline
that will carry natural gas from the Urucu hydrocarbons
province, located in the municipality of Coari, to the state
capital Manaus.

The Urucu-Manaus pipeline will be 670 kilometers in length with
conclusion scheduled for March 2008.  In the first stage of its
operation, the pipeline will transport 4.7 million cubic meters
of natural gas daily.  The gas will be used largely to supply
the thermoelectric power plants generating electricity to Manaus
and the municipalities adjacent to the pipeline.  The natural
gas will substitute diesel and fuel oil currently used to
generate all the electricity produced in the state of Amazonas.

Currently, there is only one existing line that carries
liquefied petroleum gas or LPG from the production facility in
Urucu to Coari.  A line parallel to this, 285 kilometers in
length will be constructed to carry the LPG or GLPduto, while
the existing pipeline will be switched to carrying natural gas.
The following stretch between Coari and Manaus will run for a
further 385 kilometers, the entire undertaking thus involving a
total distance of 670 kilometers between Urucu and Manaus.

A further 125 kilometers of lines will be built to transport the
product to the main city in each one of the seven
municipalities:

  -- Coari,
  -- Codajas,
  -- Anori,
  -- Anama,
  -- Caapiranga,
  -- Manacapuru, and
  -- Iranduba.

Approximately BRL500 million have already been invested prior to
the start of construction, notably in the clearing of 30 sites
along the route of the gas pipeline.  All the 10" and 20"
diameter pipe sections have been acquired and are already in
position at the respective cleared sites.

The Urucu-Manaus is made up of three sections:

  -- Section A, the first section, is the GLPduto Urucu-Coari
     stretch.  Work on the part will be executed by the
     OAS/Etesco consortium at a cost of approximately BRL342.6
     million.

  -- B-1, the second section, that will be connecting Coari and
     Anama is still in the final phase of negotiation, following
     the cancellation of the tender bid due to an excessively
     high price.  In this case, neither the main contractor nor
     the price have yet been established.

  -- The Anama-Manaus stretch of the gas pipeline is to be built
     by the Camargo Correa/Skanska Consortium at a cost of about
     BRL428 million.

The works are being financed by Banco Nacional de
Desenviolvimento Econ"mico e Social aka BNDES through a
structure which includes Transportadora Urucu Manaus S/A, a
special purpose company that is responsible for both projects.

In addition to the economic advantages, the substitution of
existing fuels by natural gas will represent an enormous
environmental gain for the country.  Production of electric
energy from natural gas significantly reduces emissions of
polluting gases, especially carbon dioxide or CO2, thus
contributing to a reduction in the greenhouse effect in line
with the Kyoto Protocol, to which Brazil is a signatory.

Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro
S.A. aka Petrobras was founded in 1953.  The company explores,
produces, refines, transports, markets, distributes oil and
natural gas and power to various wholesale customers and retail
distributors in the country.

                        *    *    *

Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's and its foreign currency long-term debt is
rated BB by Fitch.

                        *    *    *

Fitch assigned these ratings on Petroleo Brasileiro's senior
unsecured notes:

  Maturity Date           Amount        Rate       Ratings
  -------------           ------        ----       -------
  April  1, 2008      US$400,000,000    9%          BB+
  July   2, 2013      US$750,000,000    9.125%      BB+
  Sept. 15, 2014      US$650,000,000    7.75%       BB+
  Dec.  10, 2018      US$750,000,000    8.375%      BB+


PETROLEO BRASILEIRO: Will Work with PVSA to Explore for Oil
-----------------------------------------------------------
Petroleo Brasileiro aka Petrobras, along with Chevron Corp.,
will work with Venezuelan state-owned oil firm, Petroleos de
Venezuela aka PDVSA, to exploit 25 fields in 2006, Xinhua News
Agency reports.

PDVSA told Xinhua News Agency that it will invest US$1.4 billion
for the exploitation of the oil fields

Eulogio Del Pino, an official in PDVSA, disclosed at a press
conference that the company is planning to spend about US$800
million in investments and some US$600 million in spending for
this year.

                        About PDVSA

Petroleos de Venezuela SA aka PDVSA is Venezuela's state oil
company in charge of the development of the petroleum,
petrochemical and coal industry, as well as planning,
coordinating, supervising and controlling the operational
activities of its divisions, both in Venezuela and abroad.

                      About Petrobras

Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro
S.A. aka Petrobras was founded in 1953.  The company explores,
produces, refines, transports, markets, distributes oil and
natural gas and power to various wholesale customers and retail
distributors in the country.

                        *    *    *

Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's and its foreign currency long-term debt is
rated BB by Fitch.

                        *    *    *

Fitch assigned these ratings on Petroleo Brasileiro's senior
unsecured notes:

  Maturity Date           Amount        Rate       Ratings
  -------------           ------        ----       -------
  April  1, 2008      US$400,000,000    9%          BB+
  July   2, 2013      US$750,000,000    9.125%      BB+
  Sept. 15, 2014      US$650,000,000    7.75%       BB+
  Dec.  10, 2018      US$750,000,000    8.375%      BB+

                        *    *    *

On Jan. 23, 2005, Fitch Ratings upgraded the local and foreign
currency ratings of Petroleos de Venezuela S.A. aka PDVSA to
'BB-' from 'B+'.  The rating of PDVSA's export receivable
future flow securitization, PDVSA Finance Ltd, was also upgraded
to 'BB+' from 'BB'.  In addition, Fitch has assigned PDVSA a
'AAA(ven)' national scale rating.  The Rating Outlook is
Stable.  Both rating actions follow Fitch's November 2005
upgrade of Venezuela's sovereign rating.


VARIG SA: Plane Seized After Missing US$1.8M in Lease Payments
--------------------------------------------------------------
Bristol Associates seized from VARIG, S.A., a Boeing 777 due to
non-payment, the Associated Press reports.

The confiscation was due to VARIG's missed lease payments
totaling US$1,800,000, Bloomberg News relates, citing Folha de
S. Paulo.

An unnamed spokesperson for VARIG told the Associated Press that
the plane won't be immediately missed since it had been idle for
43 days awaiting maintenance.

VARIG has not been officially notified of the repossession, the
spokesperson added.

                        About VARIG

Headquartered in Rio de Janeiro, Brazil, VARIG S.A. is Brazil's
largest air carrier and the largest air carrier in Latin
America.  VARIG's principal business is the transportation of
passengers and cargo by air on domestic routes within Brazil and
on international routes between Brazil and North and South
America, Europe and Asia.  VARIG carries approximately 13
million passengers annually and employs approximately 11,456
full-time employees, of which approximately 133 are employed in
the United States.

The Company, along with two affiliates, filed for a judicial
reorganization proceeding under the New Bankruptcy and
Restructuring Law of Brazil on June 17, 2005, due to a
competitive landscape, high fuel costs, cash flow deficit, and
high operating leverage.  The Debtors may be the first case
under the new law, which took effect on June 9, 2005.  Similar
to a chapter 11 debtor-in-possession under the U.S. Bankruptcy
Code, the Debtors remain in possession and control of their
estate pending the Judicial Reorganization.  Sergio Bermudes,
Esq., at Escritorio de Advocacia Sergio Bermudes, represents the
carrier in Brazil.

Each of the Debtors' Boards of Directors authorized Vicente
Cervo as foreign representative.  In this capacity, Mr. Cervo
filed a Sec. 304 petition on June 17, 2005 (Bankr. S.D.N.Y. Case
Nos. 05-14400 and 05-14402).  Rick B. Antonoff, Esq., at
Pillsbury Winthrop Shaw Pittman LLP represents Mr. Cervo in the
United States.  As of March 31, 2005, the Debtors reported
BRL2,979,309,000 in total assets and BRL9,474,930,000 in total
debts. (VARIG Bankruptcy News, Issue No. 20; Bankruptcy
Creditors' Service, Inc., 215/945-7000)




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


BREADFRUIT INVESTMENTS: Shareholders Meeting Set for July 17
------------------------------------------------------------
Breadfruit Investments Ltd.'s shareholders are invited to attend
a final meeting at 10:00 a.m. on July 17 at:

      Via Baldo Degli Ubaldi 250
      00167 Roma, Italy

During the meeting, the liquidator will present:

   -- a winding up account including the properties already
      sold;

   -- an explanation that may be relevant in the winding
      up of the company; and

   -- the manner in which the books, accounts and documentation
      of the company and of the liquidator should be maintained
      and subsequently disposed of.

Breadfruit Investments' liquidator can be reached at:

      Leif Sorensen
      c/o Woodward Terry & Company
      Suite #10, 2nd Floor, Jack & Jill Building
      19 Fort Street
      c/o P.O. Box 822 George Town
      Grand Cayman, Cayman Islands
      Tel: 345-945-2800
      Fax: 345-945-2727


CAMBIUM CAPITAL: Proofs of Claim Must be Filed by June 16
---------------------------------------------------------
Cambium Capital Offshore, Ltd.'s creditors must submit proofs of
claim by June 16, 2006, to the company's liquidator:

      Alric Lindsay
      dms Corporate Services Ltd.
      c/o Ogier, PO Box 1234 George Town
      Grand Cayman, Cayman Islands
      Tel: (345) 949 9876
      Fax: (345) 949 1986

Creditors who are not able to comply with the June 16 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Cambium Capital started its voluntary liquidation on
May 5, 2006.


CYRUS OPPORTUNITIES: Last Day to File Proofs of Claim Is June 22
----------------------------------------------------------------
Cyrus Opportunities Fund, Ltd.'s creditors must submit proofs of
claim by June 22, 2006, to the company's liquidator:

      Robert Nisi
      390 Park Avenue, 21st Floor
      New York, New York 10022
      United States of America

Creditors who are not able to comply with the June 22 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Cyrus Opportunities started its voluntary liquidation on
May 12, 2006.

Parties-in-interest may contact:

      Colin MacKay
      c/o Ogier
      P.O. Box 1234 George Town
      Grand Cayman, Cayman Islands
      Tel: (345) 949 9876
      Fax: (345) 949 1986


CYRUS OPPORTUNITIES MASTER: Proofs of Claim Filing Ends June 22
---------------------------------------------------------------
Cyrus Opportunities Master Fund, Ltd.'s creditors must submit
proofs of claim by June 22, 2006, to the company's liquidator:

      Robert Nisi
      390 Park Avenue, 21st Floor
      New York, New York 10022
      United States of America

Creditors who are not able to comply with the June 22 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Cyrus Opportunities started its voluntary liquidation on
May 12, 2006.

Parties-in-interest may contact:

      Colin MacKay
      c/o Ogier
      P.O. Box 1234 George Town
      Grand Cayman, Cayman Islands
      Tel: (345) 949 9876
      Fax: (345) 949 1986


FIDELIS INVESTMENTS: Last Day to File Proofs of Claim Is July 12
----------------------------------------------------------------
Fidelis Investments' creditors must submit proofs of claim
by July 12, 2006, to the company's liquidator:

      Bessemer Trust Company (Cayman) Limited
      P.O. Box 694 George Town
      Grand Cayman, Cayman Islands
      Tel: (345) 949-6674
      Fax: (345) 945-2722

Creditors who are not able to comply with the July 12 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Fidelis started its voluntary liquidation on May 12, 2006.


IZUMIGAOKA INVESTORS: Creditors Must File Claims by June 15
-----------------------------------------------------------
Izumigaoka Investors, Ltd.'s 's creditors are required to send
by June 15 their names and addresses, the particulars of their
debts or claims, and the names and addresses of their attorneys-
at-law, if any, to the company's liquidator:

      John Cullinane
      Derrie Boggess
      c/o Walkers SPV Limited
      P.O. Box 908, George Town
      Grand Cayman, Cayman Islands
      Tel: (345) 914-6305

Creditors who are not able to comply with the June 15 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Izumigaoka Investors started its voluntary liquidation on
April 21, 2006.


LATIN AMERICA ENT: Claims Filing Deadline Is June 11
----------------------------------------------------
The Latin America Enterprise Steel Holding L.D.C.'s creditors
are required to send by June 11 their names and addresses, the
particulars of their debts or claims, and the names and
addresses of their attorneys-at-law, if any, to the company's
liquidator:

      John Cullinane
      Derrie Boggess
      c/o Walkers SPV Limited
      P.O. Box 908, George Town
      Grand Cayman, Cayman Islands
      Tel: (345) 914-6305

Creditors who are not able to comply with the June 11 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

LatAm Enterprise started its voluntary liquidation on
April 28, 2006.


QUARTZ FINANCE: Creditors Must Submit Claims by June 15
-------------------------------------------------------
Quartz Finance Ltd.'s creditors are required to send by June 15
their names and addresses, the particulars of their debts or
claims, and the names and addresses of their attorneys-at-law,
if any, to the company's liquidator:

      John Cullinane
      Derrie Boggess
      c/o Walkers SPV Limited
      P.O. Box 908, George Town
      Grand Cayman, Cayman Islands
      Tel: (345) 914-6305

Creditors who are not able to comply with the June 15 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Quartz Finance started its voluntary liquidation on
May 16, 2006.


REDWOOD CAPITAL III: Proofs of Claim Filing Deadline Is June 29
---------------------------------------------------------------
Redwood Capital III Ltd.'s creditors must submit proofs of claim
by June 29, 2006, to the company's liquidator:

      Kareen Watler
      Sylvia Lewis
      P.O. Box 1109 George Town
      Grand Cayman, Cayman Islands
      Tel: 949-7755
      Fax: 949-7634

Creditors who are not able to comply with the June 29 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Redwood Capital III started its voluntary liquidation on
May 16, 2006.


REDWOOD CAPITAL IV: Proofs of Claim Must be Filed by June 29
------------------------------------------------------------
Redwood Capital IV, Ltd.'s creditors must submit proofs of claim
by June 29, 2006, to the company's liquidator:

      Kareen Watler
      Sylvia Lewis
      P.O. Box 1109 George Town
      Grand Cayman, Cayman Islands
      Tel: 949-7755
      Fax: 949-7634

Creditors who are not able to comply with the June 29 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Redwood Capital IV started its voluntary liquidation on
May 16, 2006.


SCALA ADVISORS: Creditors Must Submit Claims by June 11
-------------------------------------------------------
Scala Advisors' creditors are required to send by June 11 their
names and addresses, the particulars of their debts or claims,
and the names and addresses of their attorneys-at-law, if any,
to the company's liquidator:

      John Cullinane
      Derrie Boggess
      c/o Walkers SPV Limited
      P.O. Box 908, George Town
      Grand Cayman, Cayman Islands
      Tel: (345) 914-6305

Creditors who are not able to comply with the June 11 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Scala Advisors started its voluntary liquidation on May 9, 2006.


SHINJUKU INVESTORS: Creditors Must File Claims by June 15
---------------------------------------------------------
Shinjuku Investors, Ltd.'s creditors are required to send by
June 15 their names and addresses, the particulars of their
debts or claims, and the names and addresses of their attorneys-
at-law, if any, to the company's liquidator:

      John Cullinane
      Derrie Boggess
      c/o Walkers SPV Limited
      P.O. Box 908, George Town
      Grand Cayman, Cayman Islands
      Tel: (345) 914-6305

Creditors who are not able to comply with the June 15 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Shinjuku Investors began liquidating its assets on
April 21, 2006.


STINGRAY CAPITAL: Last Day to File Proofs of Claim Is June 29
-------------------------------------------------------------
Stingray Capital Partners Ltd.'s creditors must submit proofs of
claim by June 29, 2006, to the company's liquidator:

      Ian Wight
      Stuart Sybersma
      Deloitte & Touche
      Grand Cayman, Cayman Islands

Creditors who are not able to comply with the June 29 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Stingray Capital started its voluntary liquidation on
May 16, 2006.

Parties-in-interest may contact:

      Joshua Taylor
      Deloitte & Touche
      P.O. Box 1787 George Town
      Grand Cayman, Cayman Islands
      Tel: (345) 949 7500
      Fax: (345) 949 8258


TCR SOUTH AMERICA: Creditors Must Submit Claims by June 14
----------------------------------------------------------
TCR South America Partners, Ltd.'s creditors are required to
send by June 14 their names and addresses, the particulars of
their debts or claims, and the names and addresses of their
attorneys-at-law, if any, to the company's liquidator:

      Bernard McGrath
      Ralph Woodford
      Caledonian House
      P.O. Box 1043 George Town
      Grand Cayman, Cayman Islands
      Tel: 9490050
      Fax: 9498062

Creditors who are not able to comply with the June 14 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

TCR South America started its voluntary liquidation on
March 17, 2006.


VARIASIAN DEVELOPMENT: Creditors Must File Claims by June 16
------------------------------------------------------------
Variasian Development, Ltd.'s creditors are required to send by
June 16 their names and addresses, the particulars of their
debts or claims, and the names and addresses of their attorneys-
at-law, if any, to the company's liquidator:

        Jim Derouin
        c/o Yum! Brands, Inc.
        1441 Gardiner Lane,
        Louisville, KY 40213
        USA

Creditors who are not able to comply with the June 16 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.


VARIASIAN OPERATIONS: Creditors Must File Claims by June 16
-----------------------------------------------------------
Variasian Operations (International), Ltd.'s creditors are
required to send by June 16 their names and addresses, the
particulars of their debts or claims, and the names and
addresses of their attorneys-at-law, if any, to the company's
liquidator:

        Jim Derouin
        c/o Yum! Brands, Inc.
        1441 Gardiner Lane,
        Louisville, KY 40213
        USA

Creditors who are not able to comply with the June 16 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.


VIALTA INT: Last Day to File Proofs of Claim Is June 29
-------------------------------------------------------
Vialta International, Inc.'s creditors must submit proofs of
claim by June 29, 2006, to the company's liquidator:

      Linburgh Martin
      Jeff Arkley
      P.O. Box 1034 George Town
      Grand Cayman, Cayman Islands

Creditors who are not able to comply with the June 29 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Vialta International started its voluntary liquidation on
May 9, 2006.

Parties-in-interest may contact:

      Neil Gray
      Close Brothers (Cayman) Limited
      Fourth Floor, Harbour Place
      P.O. Box 1034 George Town
      Grand Cayman, Cayman Islands
      Tel: (345) 949 8455
      Fax: (345) 949 8499




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


* COLOMBIA: Fitch Revises Outlook on BB Issuer Rating to Pos.
-------------------------------------------------------------
Fitch Ratings has revised the rating outlook on Colombia's 'BB'
ong-term foreign currency issuer default rating to positive from
stable.  The outlook on the 'BBB-' local currency IDR remains
Stable.

Colombia's ratings affirmed by Fitch are:

   -- Foreign currency Issuer Default Rating (IDR) 'BB';
   -- Local currency Issuer Default Rating (IDR) 'BBB-';
   -- Country Ceiling 'BB';
   -- Short-term 'B'.

The Outlook revision is based on improvements in key public and
external solvency indicators over the past two years and the
expectation that recent trends will improve going forward,
albeit more slowly.

"Authorities have taken advantage of a favorable external
environment to reduce the vulnerability of public debt to
exchange rate risk, repaying external debt and raising the
proportion owed in local currency to 69% while maintaining a
relatively long five-year average maturity primarily at fixed
rates," said Morgan C. Harting, Fitch Senior Director and lead
sovereign analyst for Colombia.  "In view of the weakness in the
Colombian peso over the past month, these adjustments appear to
have been particularly well-timed."

Net external debt declined from 133% of CXR in 2003 to 72% of
CXR in 2005.  Yet external debt is still a good deal higher than
the 27% of CXR 'BB' peer median.  Vulnerability of the economy
as a whole to external shocks has also fallen as Colombian firms
have gained international competitiveness and as a longer track
record of low and stable inflation may now allow the potential
for some counter-cyclical monetary policy.  External financing
needs have come down but are still higher than peers relative to
broad exports, and these requirements come disproportionately
from the public sector.  But authorities have accumulated
significant assets that would serve as a buffer in the event
that international markets cooled to the Andean country for some
time.

Because most public and external debt ratios are still generally
above peers, Fitch's assessment that Colombia's creditworthiness
is trending toward 'BB+' therefore rests on a superior
qualitative assessment of debt tolerance and credibility,' said
Harting.  The first Uribe administration moved to contain
deteriorating public debt dynamics with a pension reform and a
temporary asset tax.  Harting also said that 'Because his
coalition gained a majority in the March congressional elections
and he won by a wide margin on May 25, President Uribe now has a
strong mandate and a second term should well for economic growth
and fiscal management.  Fitch expects economic policy to focus
on consolidating recent improvements.

A free trade agreement with the US, tax reform and an extension
of caps on transfers to local and regional governments are all
expected to be submitted to Congress for its session beginning
in July and prospects for passage appear favourable.  These
policies should help keep public and external debt ratios on
declining trends going forward, though none of them are
particularly path-breaking.

An upgrade of the long-term foreign currency IDR to 'BB+' would
be supported by passage in Congress of the preliminary economic
agenda. Because broad support for the FTA in the US Congress is
not yet apparent, its fate in Washington will also be
considered.  Should the Colombian administration choose to take
advantage of its strong electoral mandate to include another
round of pension reform among its economic priorities, this
would be particularly beneficial for the credit because
shortfalls in the retirement program are a key source of fiscal
weakness.  For now, however, credit weakness originates from
public finances despite improvements in external indicators so
the Outlook on the long-term local currency IDR remains Stable.
Positive momentum in the credit could stall or reverse if the
government fails to gain passage of its economic agenda or if
confidence deteriorates significantly.  A sharp reversal in
global risk appetite could also have adverse effects on
Colombia's creditworthiness because of its higher than average
external financing requirements.


* COLOMBIA: Reaches Agreement on Free Trade Accord with US
----------------------------------------------------------
The government of Colombia has reached a free trade agreement
with the United States, the Associated Press reports.

According to the AP, Colombia is now trying to get rid of trade
barriers with Central America.

Jorge Botero, the country's trade minister, told the press,
"We've set an ambitious goal of concluding talks within six
months."

AP states that the Colombian and US negotiators are yet to
present the final text of the agreement to the legislature of
both countries for ratification.

                        *    *    *

On May 30, 2005, Fitch Ratings affirmed Colombia's ratings as:

      -- Long-term foreign currency 'BB';
      -- Country ceiling 'BB';
      -- Local currency 'BBB-';
      -- Short-term 'B'.

Fitch said the Rating Outlook is Stable.




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


* COSTA RICA: Residents Against Commercial Center Construction
--------------------------------------------------------------
About 50 Tamarindo residents decided to hold a protest against
the construction of a commercial center in the Parque
Independencia, Inside Costa Rica reports.

Inside Costa Rica relates that the Municipalidad de Santa Cruz
authorized the construction even though the Plan Regulador or
Town Regulating Plan establishes that the area is a public place
and is to be used for recreational purposes by both residents
and tourists.

The decision by the municipality to allow a private construction
company and an investor -- identity withheld -- to enter the
park and start construction operations had upset the locals,
Inside Costa Rica states.

The municipality permitted in May a change of use of the lands
without the required process under the Urban Planning Law to
turn the park into a commercial center, protesters told Inside
Costa Rica.

According to Inside Costa Rica, municipal authorities who
approved the change could face legal consequences as
authorization can only be granted by:

  -- the Instituto de Vivienda y Urbanisom,
  -- the Secretaria Tecnica Nacional del Ambiente, and
  -- the Instituto Costarricense de Turismo.

The construction company or the investment group who funded the
construction gave no explanations on how they got the
authorization, Inside Costa Rica states.

Inside Costa Rica says that the municipality suspended the
construction work on the area three weeks after they started,
but never forced the construction workers off the property nor
move to take down the walls that had been built.

The residents' protest, according to Inside Costa Rica, resulted
to the taking down of the storerooms and work areas of the
construction workers and an attempt to take down the concrete
walls.

                        *    *    *

Costa Rica is rated by Moody's:

      -- CC LT Foreign Bank Depst Ba2
      -- CC LT Foreign Curr Debt  Ba1
      -- CC ST Foreign Bank Depst NP
      -- CC ST Foreign Curr Debt  NP
      -- Foreign Currency LT Debt Ba1
      -- Local Currency LT Debt   Ba1

Fitch assigned these ratings to Costa Rica:

      -- Foreign currency long-term debt, BB
      -- Local currency long-term debt, BB
      -- Foreign currency short-term debt, B

Costa Rica carries these ratings from Standard & Poor's:

      -- Foreign Currency LT Debt BB
      -- Local Currency LT Debt   BB+
      -- Foreign Currency ST Debt B
      -- Local Currency ST Debt   B




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


AES CORP: Executive Ned Hall Joins Wind Energy Association Board
----------------------------------------------------------------
The AES Corporation reported that Ned Hall, the AES Vice
President of Wind Generation, was appointed to the Board of
Directors of the American Wind Energy Association or AWEA.

AWEA is a member association that has represented the interests
of the wind energy business in the US and abroad since 1974.

"At AES, we see tremendous potential for the wind sector as an
increasingly viable alternative energy solution worldwide.  "I
am pleased to join AWEA's Board of Directors and to help further
the development of wind generation in the US and globally," said
Ned Hall.

AES has invested approximately US$265 million in wind generation
since entering the business in 2004 and plans to triple its
investment in wind generation over the next three years.  AES
currently operates 600 MW of wind facilities and is pursuing
another 2,000 MW of wind projects in development, primarily in
the US.  In addition, the company is exploring wind power
projects in Europe, China, India and Central and South America,
with an emphasis on countries with existing AES businesses.

Ned has been with AES since 1988.  His previous positions with
the company include Managing Director, Business Development,
where he originated and managed AES's business development
opportunities, primarily in wind and liquefied natural gas or
LNG.  Before that, he was the Group Manager, responsible for
development and operations in the US and international
locations.  He also served as the Executive Vice President of
AES China Generating Company.

AES Corporation (NYSE:AES) -- http://www.aes.com/-- is a global
power company.  The Company operates in South America, Europe,
Africa, Asia and the Caribbean countries.  Generating 44,000
megawatts of electricity through 124 power facilities, the
Company delivers electricity through 15 distribution companies.

AES's Latin America business group is comprised of generation
plants and electric utilities in Argentina, Brazil, Chile,
Colombia, Dominican Republic, El Salvador, Panama and Venezuela.
Fuels include biomass, diesel, coal, gas and hydro.  The group
also pursues business development activities in the region.  AES
has been in the region since May 1993, when it acquired the CTSN
power plant in Argentina.

                        *    *    *

As reported in the Troubled Company Reporter on May 25, 2006,
Fitch affirmed The AES Corporation's Issuer Default Rating at
'B+'.  Fitch also affirmed and withdrew the ratings for the
company's junior convertible debt.  Fitch said the Rating
Outlook for all remaining instruments is Stable.

As reported in the Troubled Company Reporter on March 31, 2006,
Standard & Poor's Ratings Services raised its corporate credit
rating on energy company The AES Corp. to 'BB-' from 'B+'.  S&P
said the outlook is stable.

As reported in the Troubled Company Reporter on Jan. 11, 2006,
Moody's affirmed the ratings of The AES Corporation, including
its Ba3 Corporate Family Rating and the B1 rating on its senior
unsecured debt.  Moody's said the rating outlook remains stable.


* DOMINICAN REPUBLIC: US Affirms New Laws Needed for Free Trade
---------------------------------------------------------------
Robert Zoellick, the United State's deputy secretary, confirmed
to Dominican Today that new laws and regulations must be
enforced for the DR-CAFTA or the Dominican Republic-Central
America-United States Free Trade Agreement to be implemented.

As reported in the Troubled Company Reporter on June 5, 2006, a
US Trade Representative said that the Dominican Republic needed
to revise several laws as a condition set by the United States
for the implementation of the DR-CAFTA.  Everett Eisenstat, the
Deputy Secretary for the Americas, said that US requirements for
change are specifically aimed at:

  -- Law 173 regarding the representation of foreign companies,
  -- Law 65-01 on copyrights, and
  -- Law 20-01 on industrial property.

The Dominican Today relates that Mr. Zoellick said that new laws
are needed to guide certain activities.  The laws include those
relating to government purchases.

"There are certain dispositions that, regarding public
purchases, would allow the Dominican Republic and the United
States to afford equal treatment to other countries, especially
in the area of purchases," Mr. Zoellick told the Dominican
Today.

As reported in the Troubled Company Reporter on May 22, 2006,
Kevin Manning -- president of the American Chamber of Commerce
said that the DR-CAFTA is scheduled to take effect in the
Dominican Republic on July 1, 2006.

                        *    *    *

The Troubled Company Reporter - Latin America reported on
May 9, 2006, that Fitch Ratings upgraded these debt and issuer
Default Ratings of the Dominican Republic:

   -- Long-term foreign currency Issuer Default Rating
      to B from B-;

   -- Country ceiling upgraded to B+ from B-;

   -- Foreign currency bonds due 2006 to B-/RR4 from CCC+/RR4;

   -- Foreign currency Brady bonds due 2009 to B/RR4
      from B-/RR4;

   -- Foreign currency bonds due 2011 to B/RR4 from B-/RR4;

   -- Foreign currency bonds due 2013 to B-/RR4 from CCC+/RR4;

   -- Foreign currency bonds due 2018 to B/RR4 from B-/RR4; and

   -- Foreign currency collateralized Brady bonds due 2024
      to B+/RR3 from B/RR3.

Fitch also affirmed these ratings:

   -- Long-term local currency Issuer Default Rating: B; and
   -- Short-term Issuer Default Rating: B.

Additionally, Fitch assigned a debt and Recovery Rating to this
issue:

   -- Foreign currency bonds due 2027: B/RR4.

Fitch said the rating outlook for the long-term foreign and
local currency IDRs is Stable.




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


KAISER ALUMINUM: Asks Court to Approve American Settlement Pact
---------------------------------------------------------------
Kaiser Aluminum & Chemical Corporation asks the U.S. Bankruptcy
Court for the District of Delaware to approve the Settlement
Agreement with American Re-Insurance Company and Executive Risk
Indemnity Company.

Kimberly D. Newmarch, Esq., at Richards, Layton & Finger, in
Wilmington, Delaware, relates that American Re and Executive
Risk issued several insurance policies that provide excess
insurance coverage to KACC and certain parties related to KACC.

Ms. Newmarch notes that the KACC Parties have incurred and may
incur certain liabilities, expenses and losses arising out of
asbestos personal injury claims, silica personal injury claims,
coal tar pitch volatile personal injury claims and noise-induced
hearing loss personal injury claims.

To obtain adjudication of KACC's rights for coverage under the
Subject Policies as to asbestos containing product bodily
injuries, it initiated an insurance coverage action against
certain insurers, including American Re and Executive Risk.

The Products Coverage Action is styled Kaiser Aluminum &
Chemical Corporation v. Certain Underwriters at Lloyds, London,
Case No. 31241 in the Superior Court of California for the
County of San Francisco.

KACC, on its own behalf and on behalf of the KACC Parties,
entered into a settlement agreement with American Re and
Executive Risk to resolve certain matters relating to the
Subject Policies, the coverage for Channeled Personal Injury
Claims, and other present and future liabilities.

The Settlement Agreement will also resolve KACC's other claims
against American Re and Executive Risk Parties with respect to
the other policies.

A full-text copy of the Settlement Agreement is available for
free at http://researcharchives.com/t/s?aa5

The principal terms of the Settlement Agreement are:

    (a) Unless a Trigger Date has occurred, American Re and
        Executive Risk will pay US$5,500,000 as settlement
        amount:

             Date                     Amount
             ----                     ------
             July 1, 2008        US$1,375,000
             July 1, 2009           1,375,000
             July 1, 2010           1,375,000
             July 1, 2011           1,375,000

       The Trigger Date is the day that the last of these events
       has occurred:

      (1) the order approving the settlement agreement becomes a
          Final Order;

      (2) the Confirmation Order becomes final; and

      (3) the occurrence of the Plan Effective Date.

        In the event the Trigger Date has occurred, payment will
        be made to Wells Fargo Bank, N.A, as insurance escrow
        agent, for distribution to the Funding Vehicle Trust;

    (b) After the Trigger Date has occurred, payments to U.S.
        Bank, National Association, as the Settlement Account
        Agent, will be disbursed to the Insurance Escrow Agent
        for distribution to the Funding Vehicle Trust, or as
        otherwise directed by the Court;

    (c) Upon the payment of the Settlement Amount to the
        Insurance Escrow Account, legal and equitable title to
        the Settlement Amount will pass irrevocably to the
        Insurance Escrow Agent to be distributed pursuant to the
        Plan;

    (d) KACC agrees to release all of its rights under the
        Subject Policies and certain other rights under the
        Other American Re and Executive Risk Policies, and to
        dismiss American Re and Executive Risk from the Products
        Coverage Action;

    (e) The Settlement Agreement covers all claims that might be
        covered by the Subject Policies and, accordingly,
        constitutes a policy buy-out of those Policies; and

    (f) The Settlement Agreement contains certain rights to
        adjustment of the Settlement Amount if Asbestos
        Legislation is enacted into law before the earlier of
        the Trigger Date and July 31, 2006, and the Asbestos
        Legislation does not provide American Re and Executive
        Risk Parties a dollar-for-dollar credit for payments
        under the Settlement Agreement.

According to Ms. Newmarch, the Settlement Agreement will
eliminate KACC's continuing costs of prosecuting the Products
Coverage Action against American Re and Executive Risk.  It will
also eliminate uncertainty regarding future payments by American
Re and Executive Risk.  Additionally, the Settlement Agreement
will secure the payment of a total fixed amount from American Re
and Executive Risk without further delay and costs to KACC.

                    About Kaiser Aluminum

Headquartered in Foothill Ranch, California, Kaiser Aluminum
Corporation -- http://www.kaiseraluminum.com/-- is a leading
producer of fabricated aluminum products for aerospace and high-
strength, general engineering, automotive, and custom industrial
applications.  The Company filed for chapter 11 protection on
February 12, 2002 (Bankr. Del. Case No. 02-10429), and has sold
off a number of its commodity businesses during course of its
cases.  Corinne Ball, Esq., at Jones Day, represents the Debtors
in their restructuring efforts.  On June 30, 2004, the Debtors
listed US$1.619 billion in assets and US$3.396 billion in debts.
(Kaiser Bankruptcy News, Issue No. 97; Bankruptcy Creditors'
Service, Inc., 215/945-7000)


KAISER ALUMINUM: Wants Los Angeles Pension Plan Terminated
----------------------------------------------------------
Kaiser Aluminum & Chemical Corporation asks the U.S. Bankruptcy
Court for the District of Delaware to:

    -- approve the distress termination of the Los Angeles Plan
       pursuant to Section 4041(c)(2)(B) of the Employee
       Retirement Income Security Act of 1974; and

    -- authorize the implementation of KACC's participation in
       the Teamsters Pension Plan pursuant to Section 363(b) of
       the Bankruptcy Code.

As of their bnakruptcy filing, KACC sponsored eight pension
plans covering hourly and union employees, and salaried
employees.

The pension plans that cover hourly and union employees are:

    * Kaiser Aluminum Pension Plan
    * Kaiser Aluminum Inactive Pension Plan
    * Kaiser Aluminum Los Angeles Extrusion Pension Plan
    * Kaiser Center Garage Pension Plan
    * Kaiser Aluminum Tulsa Pension Plan
    * Kaiser Aluminum Bellwood Pension Plan
    * Kaiser Aluminum Sherman Pension Plan

In 2003 and 2004, the Debtors encountered certain issues
relating to their pension obligations with their retired and
union employees.  To put an end to those issues, the Debtors
asked the Bankruptcy Court to:

    * determine that the financial requirement for a distress
      termination of each Hourly Plans were satisfied;

    * approve a distress termination of certain Hourly Plans;
      and

    * authorize implementation of certain replacement defined
      contributions.

Among other things, the Bankruptcy Court approved the distress
termination of each of the Hourly Plans other than the Inactive
Plan, the Los Angeles Plan and the Garage Plan.  In addition,
the Bankruptcy Court authorized the replacement defined
contribution plans, subject to the Pension Benefit Guaranty
Corporation's right to review and challenge the plans.

The PBGC took an appeal from the Bankruptcy Court's decision to
the District Court.

To resolve the PBGC and the Debtors' dispute over the Distress
Termination Order, the parties entered into a settlement
agreement.  But before the Bankruptcy Court could approve the
Settlement Agreement, the U.S. District Court for the District
of Delaware affirmed the Distress Termination Order.

As a result, the PBGC filed a notice of appeal with the U.S.
Court of Appeals for the Third Circuit seeking a review of the
District Court's ruling.

The parties subsequently modified the PBGC Settlement Agreement
so that the PBGC could pursue its appeal to the Third Circuit.
The modifications provide that:

    -- irrespective of the outcome, no party may seek further
       appellate review;

    -- if the PBGC prevails in the Appeal, KACC will retain the
       remaining Hourly Plans, including the Los Angeles Plan;
       and

    -- if KACC prevails in the PBGC Appeal, the PBGC will
       approve the distress termination of, and assume
       responsibility for, the remaining Hourly Plans other than
       the Garage Plan.

The PBGC's Appeal is still pending for the Third Circuit's
decision.

                  Teamsters' New Labor Pact

In April 2006, KAAC and the Teamster Local 986 Miscellaneous
Warehouseman Drivers and Helpers of the International
Brotherhood of Teamsters entered into a new three-year
collective bargaining agreement.  The Unions are covered under
the Los Angeles Plan.

Paul N. Heath, Esq., at Richards, Layton & Finger, in
Wilmington, Delaware, tells the Court that the new CBA includes
a letter agreement that relates to the pending PBGC Appeal and
the potential termination of the Los Angeles Plan.

The Letter Agreement provides that in the event that:

    (i) KAAC prevails in the PBGC Appeal, the Los Angeles Plan
        will be terminated and replaced with KAAC's
        participation in the Teamsters' multi-employer pension
        trust, the Western Conference of Teamsters Trust; and

   (ii) PBGC prevails in its Appeal, KACC will continue to
        maintain the Los Angeles Plan through the three-year
        term of the new collective bargaining agreement.

Mr. Heath notes that KAAC's monthly contribution per employee to
the Teamsters Pension Plan would be up to $1 an hour for each
hour worked.  The Teamsters Pension Plan invests the funds
received from the employer participants and determines the
pension benefits that will be paid at retirement.  KACC's only
liability in respect of the Teamsters Pension Plan will be its
monthly obligation to pay the agreed contribution based on hours
worked.

Mr. Heath says that KACC's participation in the Teamsters
Pension Plan was negotiated as part of the new CBA.  The Debtors
believe that participation in the Teamsters Pension Plan is both
cost-effective and warranted under Section 363(b).

                    About Kaiser Aluminum

Headquartered in Foothill Ranch, California, Kaiser Aluminum
Corporation -- http://www.kaiseraluminum.com/-- is a leading
producer of fabricated aluminum products for aerospace and high-
strength, general engineering, automotive, and custom industrial
applications.  The Company filed for chapter 11 protection on
February 12, 2002 (Bankr. Del. Case No. 02-10429), and has sold
off a number of its commodity businesses during course of its
cases.  Corinne Ball, Esq., at Jones Day, represents the Debtors
in their restructuring efforts.  On June 30, 2004, the Debtors
listed US$1.619 billion in assets and US$3.396 billion in debts.
(Kaiser Bankruptcy News, Issue No. 97; Bankruptcy Creditors'
Service, Inc., 215/945-7000)




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


COPAMEX SA: Fitch Affirms BB- Senior Unsecured Currency Ratings
---------------------------------------------------------------
Fitch Ratings has affirmed Copamex, S.A. de C.V. senior
unsecured foreign and local currency Issuer Default Ratings at
'BB-' and the senior unsecured national scale rating at 'A-'.
Fitch has also affirmed the rating of Copamex's peso-denominated
medium-term notes or Certificados Bursatiles at 'A' and the
short-term rating at 'F2'.  The Outlook is Stable.

The ratings are supported by the company's market position,
stable operating performance and improved debt maturity profile.
Copamex continues to maintain a strong market position in its
core business lines and a stable revenue base.  During 2005, 53%
of revenues were derived from products with leading market
shares in Mexico.

Over the past several years, the company has maintained stable
EBITDA levels of around US$40 million per year.  The combination
of a favorable outlook in Mexico on consumer demand for paper
products and cost efficiencies in energy consumption should
enable moderate increases in revenues and EBITDA during 2006.
At March 31, 2006 total on-balance sheet debt reached MXP1,422
million on a gross basis and MXP1,317 million net of restricted
cash related to a 15% collateral on MXP700 millions outstanding
CBs.  The debt was composed of peso-denominated medium-term
notes issues totaling MXP 1,267 million, MXP54 million of U.S.
dollar-denominated commercial paper and MXP101 of bank debt.
During 2005, the company completed a US$40 million five-year
revolving assignment of receivables to an irrevocable trust
administered by Banco Invex as trustee and borrower.  Proceeds
from the transaction were used by Copamex for working capital
purposes, liquidation of a factoring facility, cash collateral
and debt repayment.  Although this transaction was structured
without recourse, the asset coverage on unsecured creditors of
Copamex has diminished.  The company's leverage including off-
balance sheet liabilities remains high and credit protection
measures are in the weak range of the rating category.

At March 31, 2006, the company had a ratio of on-balance sheet
debt to last 12 months EBITDA of 3.1 times and a ratio of EBITDA
to interest expense of 2.9x.  During 2005, Copamex improved its
debt maturity profile with the refinancing of debt with MXP700
million of CBs due 2008 and 2009.  The company is at present
seeking to extend the maturity of MXP100 million of CBs due 2006
to 2010.

Management's strategy is focused on organic growth with modest
capital expenditures, which should allow the company to generate
modest free cash flow during 2006 and reduce debt.  This should
translate into moderate improvements in credit protection
measures during the year and beyond.  Failure to meet these
financial targets could affect the ratings negatively.

Copamex was founded in 1928 as an industrial paper manufacturer.
During 2003 and 2004, the company divested its multi-wall bag
business and its consumer division and used proceeds for debt
reduction.  Copamex has three main business divisions:
packaging, printing and writing, and child diapers.  In 2005
sales and EBITDA reached US$434 million and US$39 million
respectively.  Packaging accounted for 48% of revenues, printing
and writing for 45%, and diapers for the remaining 7%.


GRUPO MEXICO: Cananea Mine Operations Continue Despite Strike
-------------------------------------------------------------
Operations at Grupo Mexico's Canaea copper mine goes on despite
a strike held by the majority of its workers, a company source
told Reuters.

As reported in the Troubled Company Reporter on June 5, 2006,
workers at Grupo Mexico's Cananea copper mine held
demonstrations on June 1 and was expected to last for several
days, a local union member said.  The National Mining and Metal
Workers Union has been in conflict with the Mexican government
over the union leadership since March 24.  Labor authorities
maintained that dissident Elias Morales is the leader and not
Napoleon Gomez Urrutia, whom the union has ratified.  Mr.
Urrutia, currently in Canada, is being investigated on
allegations of misuse of US$55 million Grupo Mexico handed for
distribution among workers in 2004 as part of the 1990
privatization of Cananea and La Caridad.  Juan Rebolledo, Grupo
Mexico's vice president for international affairs, stated that
June 1 is a day off at the mine as it is the anniversary of the
1906 strike but the full effect of the strike would not be felt
until Friday.

According to Reuters, the unnamed source said that the mine is
using its nonunionized staff to continue production at the mine.
Managerial staff are operating Cananea's concentrator and SX-EW
copper refining system using already mined material.

The strike, however, would start to affect the operations in the
next few days if the situation was not resolved, the source told
Reuters.  The supply of mined material that the mine has would
not be enough.

Grupo Mexico SA de C.V. -- http://www.grupomexico.com/--  
through its ownership of Asarco and the Southern Peru Copper
Company, is the world's third largest copper producer, fourth
largest silver producer and fifth largest producer of zinc and
molybdenum.

                        *    *    *

Fitch Ratings assigned these ratings to Grupo Mexico SA de C.V.:

     -- foreign currency long-term debt, BB; and
     -- local currency long-term debt, BB.


INT'L PAPER: To Sell Unit to Apollo Management for US$1.4 Bil.
--------------------------------------------------------------
International Paper signed a definitive agreement to sell its
coated and supercalendered papers business to CMP Holdings LLC,
an affiliate of Apollo Management L.P. for approximately
US$1.4 billion, subject to certain post-closing adjustments.
The coated and supercalendered papers business includes four
paper mills, located in Jay, Maine; Bucksport, Maine; Quinnesec,
Michigan; and Sartell, Minnesota, and generated US$1.6 billion
in sales in 2005.  The transaction is expected to close in mid-
summer 2006, subject to various closing conditions including
receipt of financing, regulatory approvals and other customary
conditions.

The purchase price consists of approximately US$1.37 billion in
cash plus approximately US$30 million in the form of a 10%
limited partnership interest in CMP Investments LP, the parent
company of CMP Holdings LLC.  This interest includes the right
to receive certain additional payments contingent upon the
buyer's achievement of certain investment return hurdles.

The transaction is part of IP's transformation plan to focus on
uncoated papers and industrial and consumer packaging globally.
Expected proceeds from divestitures announced to date, including
coated papers, are approximately US$9.1 billion.

"The coated papers sale agreement is another important step in
transforming International Paper to narrow our focus, strengthen
our returns and improve value for our shareowners," John Faraci,
IP chairman and chief executive, said.  "Our coated papers unit
is a good business, with talented leadership, excellent
employees, quality brands and an outstanding customer base.
This business has been an important contributor to International
Paper, and we expect it will continue to thrive under new
ownership."

"We are excited to be purchasing International Paper's Coated
and SC Paper business, an asset with a leadership position in
the North American coated papers markets," Scott Kleinman, a
partner at Apollo Management, said.  "We view the company as an
excellent business and look forward to the opportunity to invest
alongside a strong management team with whom we will work to
grow the business and realize the full potential of the
company's leading market positions."

International Paper's coated and supercalendered papers business
annually produces approximately 2 million tons of coated
freesheet and coated groundwood papers for the magazine, catalog
and retail insert markets.  Its brands include Advocate(R),
Influence(R), Liberty(TM), Savvy(R), Trilogy(R) and
Velocity(TM).  The business, headquartered in Memphis,
Tennessee, employs approximately 3,000 people.

                    About Apollo Management

Apollo Management, L.P., founded in 1990, is among the most
active and successful private investments-firms in the United
States in terms of both number of investment transactions
completed and aggregate dollars invested.  Since its inception,
Apollo has managed the investment of an aggregate of
approximately US$13 billion in equity capital in a wide variety
of industries, both domestically and internationally, and is
currently managing Apollo Investment Fund VI, L.P., its most
recent fund with committed capital of US$10.1 billion.

                    About International Paper

Based in Stamford, Connecticut, International Paper Company --
http://www.internationalpaper.com/-- is a leader in the forest
products industry for more than 100 years.  The company is
currently transforming its operations to focus on its global
uncoated papers and packaging businesses, which operate and
serve customers in the U.S., Europe, South America and Asia.
These businesses are complemented by an extensive North American
merchant distribution system.  International Paper is committed
to environmental, economic and social sustainability, and has a
long-standing policy of using no wood from endangered forests.

                        *    *    *

Moody's Investors Service assigned a Ba1 senior subordinate
rating and Ba2 Preferred Stock rating on International Paper
Company in Dec. 5, 2005.


MERIDIAN AUTOMOTIVE: Funding & Treatment of Claims Under Plan
-------------------------------------------------------------
On May 26, 2006, Meridian Automotive Systems, Inc., and its
eight debtor-affiliates delivered to the U.S. Bankruptcy Court
for the District of Delaware their First Amended Joint Plan of
Reorganization and Disclosure Statement.

The Debtors' Prepetition First Lien Lenders -- Camulos Master
Fund LP, DK Acquisition Partners, L.P., and Stanfield Capital
Partners LLC -- and the Official Committee of Unsecured
Creditors are also co-proponents of the Amended Plan.

According to Richard E. Newsted, Meridian's president and chief
executive officer, the Debtors, the Committee and the
Prepetition Second Lien Agent have reached an agreement with
respect to the allocation of the distributions from the
Litigation Trust, the Lien Avoidance Release, the non-pursuit of
certain Avoidance Actions in exchange of credit and pricing
terms, and certain other provisions of the Plan.

"The principal purpose of the Plan is to effect a balance sheet
restructuring pursuant to which the Prepetition First Lien
Claims will be satisfied in full through a menu of treatment
alternatives, including cash and certain debt and preferred
equity instruments, while the holders of Prepetition Second Lien
Claims will receive, among other things, their Pro Rata share of
substantially all of the New Common Stock to be issued under the
Plan," Mr. Newsted says.

                        Plan Funding

The Plan contemplates the issuance of a combination of debt and
equity instruments to fund its implementation, including the New
Common Stock, the Class A Convertible Preferred Stock, and the
New Third Lien Notes.

Reorganized Meridian will issue 2,000,000 shares of New Common
Stock and distribute these shares to holders of allowed
Prepetition Second Lien Secured Claims.  Up to 10% of the total
authorized shares of New Common Stock will be reserved for
certain members of management and employees who participate in
any Management Incentive Plan that may be implemented after the
Effective Date.

Reorganized Meridian will authorize the issuance of
approximately 620,000 shares of Class A Convertible Preferred
Stock to be distributed to holders of allowed Prepetition First
Lien Claims and allowed Prepetition Second Lien Secured Claims.

Subject to the treatment elected by holder of Prepetition First
Lien Claims, Reorganized Meridian will be authorized to issue
the New Third Lien Notes on the Effective Date in an aggregate
face amount not to exceed US$150,000,000.  The New Third Lien
Notes will be secured by liens on substantially all assets of
the Reorganized Debtors, junior only to the liens securing the
Exit Facility.

On the Effective Date, the Reorganized Debtors will be
authorized and directed to enter into an Exit Facility to obtain
the funds necessary to:

    (a) repay the DIP Claims in full in cash and replace any
        letters of credit issued pursuant to the DIP Credit
        Agreement;

    (b) make other payments required to be made, including, the
        payments in cash of a portion of the Allowed Prepetition
        First Lien Claims and the payment of Allowed Priority
        Non-Tax Claims, Allowed Priority Tax Claims, and Allowed
        Administrative Expense Claims; and

    (c) meet working capital and other corporate needs of the
        Reorganized Debtors, thereby facilitating their
        emergence from bankruptcy.

According to Mr. Newsted, the Debtors are currently in
discussions with several lenders to arrange the Exit Facility.
The Debtors are confident that prior to the Confirmation Date
they will obtain one or more formal commitments to provide the
Exit Facility.  The closing of the Exit Facility is a condition
to the effectiveness of the Plan.

The Debtors will present commitment letters with respect to the
Exit Facility to the Bankruptcy Court at or prior to the
Confirmation Hearing.

The Reorganized Debtors will also use the proceeds of the sale
and leaseback of the Debtors' manufacturing facility in Grand
River Avenue, Fowlerville, Michigan, to fund the implementation
of the Plan.

The Court will convene a hearing on June 27, 2006, to consider
approval of the Disclosure Statement.

A full-text copy of the Debtors' First Amended Joint Plan of
Reorganization is available for free at:

    http://bankrupt.com/misc/Meridian_1stAmendment_Plan.pdf

A full-text copy of the Disclosure Statement is available for
free at:

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

               Classification & Treatment of Claims

Under their First Amended Joint Plan of Reorganization, the
Debtors now group claims and interests into eight classes:

                                              Estimated
                                              ---------
Class    Claims              Status    Allowed Amt.  Recovery(%)
-----    ------              ------    ------------  -----------
  N/A    Administrative
         Expense Claims   Unimpaired  US$16,000,000         100%

  N/A    DIP Claims       Unimpaired  US$40,000,000         100%
                                        (plus US$5,000,000
                                         of reimbursement
                                         obligations)

  N/A    Priority
         Tax Claims       Unimpaired   (not indicated)      100%

  N/A    Professional
         Compensation
         Claims           Unimpaired   (not indicated)      100%

   1     Priority         Unimpaired      US$10,000         100%
        Non-tax Claims

   2    Other Secured     Unimpaired        100,000         100%
        Claims

   3    Prepetition First  Impaired     303,400,000     85%-100%
        Lien Claims

   4    Prepetition Second  Impaired     55,000,000          96%
        Lien Secured Claims

   5    Prepetition Second  Impaired    125,000,000           -
        Lien Deficiency
        Claims

   6    General Unsecured   Impaired     96,000,000           -
        Claims

   7    Prepetition         Impaired    179,900,000           0%
        Subordinated Claims

   8    Prepetition         Impaired              -           0%
        Meridian Interests

Headquartered in Dearborn, Mich., Meridian Automotive Systems,
Inc. -- http://www.meridianautosystems.com/-- supplies
technologically advanced front and rear end modules, lighting,
exterior composites, console modules, instrument panels and
other interior systems to automobile and truck manufacturers.
Meridian operates 22 plants in the United States, Canada and
Mexico, supplying Original Equipment Manufacturers and major
Tier One parts suppliers.  The Company and its debtor-affiliates
filed for chapter 11 protection on April 26, 2005 (Bankr. D.
Del. Case Nos. 05-11168 through 05-11176).  James F. Conlan,
Esq., Larry J. Nyhan, Esq., Paul S. Caruso, Esq., and Bojan
Guzina, Esq., at Sidley Austin Brown & Wood LLP, and Robert S.
Brady, Esq., Edmon L. Morton, Esq., Edward J. Kosmowski, Esq.,
and Ian S. Fredericks, Esq., at Young Conaway Stargatt & Taylor,
LLP, represent the Debtors in their restructuring efforts.  Eric
E. Sagerman, Esq., at Winston & Strawn LLP represents the
Official Committee of Unsecured Creditors.  The Committee also
hired Ian Connor Bifferato, Esq., at Bifferato, Gentilotti,
Biden & Balick, P.A., to prosecute an adversary proceeding
against Meridian's First Lien Lenders and Second Lien Lenders to
invalidate their liens.  When the Debtors filed for protection
from their creditors, they listed US$530 million in total assets
and approximately US$815 million in total liabilities.
(Meridian Bankruptcy News, Issue No. 28; Bankruptcy Creditors'
Service, Inc., 215/945-7000).


MERIDIAN AUTOMOTIVE: Lazard's Valuation Analysis Under Plan
-----------------------------------------------------------
Lazard Freres & Co. LLC, Meridian Automotive Systems, Inc., and
its debtor-affiliates' investment banker, undertook a valuation
analysis to determine the value available for distribution to
holders of allowed claims pursuant to the Debtors' First Amended
Joint Plan of Reorganization, and to analyze the relative
recoveries to those holders.

Richard E. Newsted, the Debtors' president and chief executive
officer, relates that the estimated total value available for
distribution is comprised of two components:

    (a) an estimated value of the Reorganized Debtors'
        operations on a going concern basis; and

    (b) the proceeds from the sale of certain businesses or
        assets.

Lazard concluded, solely for purposes of the Plan, that the
Enterprise Value of the Reorganized Debtors ranges from
US$350,000,000 to US$420,000,000, with a midpoint of
US$390,000,000.

According to Mr. Newsted, Lazard's mid-point estimated
Enterprise Value implies a value for the New Common Stock of
US$53,000,000 on the Effective Date.

In estimating the Enterprise Value and Common Equity Value of
the Reorganized Debtors, Lazard:

    (a) reviewed certain historical financial information of the
        Debtors for recent years and interim periods;

    (b) reviewed certain internal financial and operating data
        of the Debtors;

    (c) met with the members of senior management to discuss the
        Debtors' operations and future prospects;

    (d) visited certain operating facilities;

    (e) reviewed publicly available financial data for, and
        considered the market value of, public companies that
        Lazard deemed generally comparable to the Debtors'
        operating business;

    (f) reviewed publicly available financial data for, and
        considered the value of, merger and acquisition
        transactions involving companies Lazard deemed generally
        comparable to the Debtors' operating business;

    (g) considered certain economic and industry information
        relevant to the operating business; and

    (h) conducted other studies, analyses, inquiries and
        investigations as it deemed appropriate.

Headquartered in Dearborn, Mich., Meridian Automotive Systems,
Inc. -- http://www.meridianautosystems.com/-- supplies
technologically advanced front and rear end modules, lighting,
exterior composites, console modules, instrument panels and
other interior systems to automobile and truck manufacturers.
Meridian operates 22 plants in the United States, Canada and
Mexico, supplying Original Equipment Manufacturers and major
Tier One parts suppliers.  The Company and its debtor-affiliates
filed for chapter 11 protection on April 26, 2005 (Bankr. D.
Del. Case Nos. 05-11168 through 05-11176).  James F. Conlan,
Esq., Larry J. Nyhan, Esq., Paul S. Caruso, Esq., and Bojan
Guzina, Esq., at Sidley Austin Brown & Wood LLP, and Robert S.
Brady, Esq., Edmon L. Morton, Esq., Edward J. Kosmowski, Esq.,
and Ian S. Fredericks, Esq., at Young Conaway Stargatt & Taylor,
LLP, represent the Debtors in their restructuring efforts.  Eric
E. Sagerman, Esq., at Winston & Strawn LLP represents the
Official Committee of Unsecured Creditors.  The Committee also
hired Ian Connor Bifferato, Esq., at Bifferato, Gentilotti,
Biden & Balick, P.A., to prosecute an adversary proceeding
against Meridian's First Lien Lenders and Second Lien Lenders to
invalidate their liens.  When the Debtors filed for protection
from their creditors, they listed US$530 million in total assets
and approximately $815 million in total liabilities.  (Meridian
Bankruptcy News, Issue No. 28; Bankruptcy Creditors' Service,
Inc., 215/945-7000).


TAG IT PACIFIC: Posts US$729,403 Net Loss in First Qtr. 2006
------------------------------------------------------------
Tag-It Pacific, Inc., filed its first quarter financial
statements for the three months ended March 31, 2006, with the
US Securities and Exchange Commission on May 22, 2006.

The Company reported an US$729,403 net loss on US$10,638,216 of
net sales for the three months ended March 31, 2006.

At March 31, 2006, the Company's balance sheet showed
US$30,146,479 in total assets and US$29,744,681 in total
liabilities resulting in US$371,798 stockholders' equity.

The Company's March 31 balance sheet also showed strained
liquidity with US$15,211,311 in total current assets available
to pay US$15,355,944 in total current liabilities coming due
within the next 12 months.

Full-text copies of the Company's financial statements for the
three months ended March 31, 2006, are available for free at
http://ResearchArchives.com/t/s?a98

                     Going Concern Doubt

Singer Lewak Greenbaum & Goldstein, LLP, in Los Angeles,
California, raised substantial doubt about Tag-It Pacific,
Inc.'s ability to continue as a going concern after auditing the
Company's consolidated financial statements for the year ended
Dec. 31, 2005.  The auditor pointed to the Company's incurred
net loss of US$29,537,709 and accumulated deficit of
US$50,434,042 at December 31, 2005.

                    About Tag-It Pacific

Tag-It Pacific, Inc., distributes apparel items to fashion
manufacturers United States, Asia, Mexico, the Dominican
Republic, and Central and South America.  Also it offers formed
wire metal zippers for the jeans and sportswear industries.


UNITED RENTALS: Earns US$43.7 Million in Quarter Ended March 31
---------------------------------------------------------------
United Rentals, Inc., filed its financial statements for the
quarter ended March 31, 2006, with the US Securities and
Exchange Commission on May 9, 2006.

The Company reported a US$20,000,000 of net income on
US$846,000,000 of revenues for the three months ended
March 31, 2006.

At March 31, 2006, the Company's balance sheet showed
US$5,361,000,000 in total assets and US$4,110,000,000 in total
liabilities resulting in a stockholders' equity of
US$1,251,000,000.

A full-text copy of the Company's financial statements for the
quarter ended March 31, 2006, is available for free at:

               http://ResearchArchives.com/t/s?ad0

Headquartered in Greenwich, Connecticut, United Rentals, Inc.
-- http://unitedrentals.com/-- is the largest equipment rental
company in the world, with an integrated network of more than
750 rental locations in 48 states, 10 Canadian provinces and
Mexico.  The company's 13,400 employees serve construction and
industrial customers, utilities, municipalities, homeowners and
others.  The company offers for rent more than 20,000 classes of
equipment with a total original cost of US$3.9 billion.  United
Rentals is a member of the Standard & Poor's MidCap 400 Index
and the Russell 2000 Index(R).

                        *    *    *

As reported in the Troubled Company Reporter on April 18, 2006,
Standard & Poor's Ratings Services revised the CreditWatch
implications for its ratings on equipment rental company United
Rentals (North America) Inc. (United Rentals) and for its
parent, United Rentals Inc. (URI), to developing from negative.
This includes the 'BB-' corporate credit rating on the company,

As reported in the Troubled Company Reporter on April 7, 2006,
Moody's Investors Service affirmed the B2 corporate family
rating; B2 senior secured rating; B3 senior unsecured rating;
Caa1 senior subordinate rating; Caa2 Quarterly Income Preferred
Securities rating; and SGL-3 speculative grade liquidity rating
of United Rental (North America) Inc., and its related entities.

Moody's said the rating outlook is changed to Developing from
Negative.


VITRO: Awards US$2.5 Million Networking Contract to AT&T Inc.
-------------------------------------------------------------
Vitro, S.A. de C.V., awarded a US$2.5 million networking
services contract to AT&T Inc.  The three-year agreement renews
and expands a long-standing relationship between the two
companies.

Vitro produces many of the glass items that America's consumers
use every day, such as windows for homes and offices, car and
truck windows and windshields, food containers and beverage
bottles.  The contract calls for AT&T to provide an Internet
Protocol Virtual Private Network or IP VPN solution using
Multiprotocol Label Switching or MPLS to 64 of Vitro's regional
offices and retail locations throughout the United States.  AT&T
will also provide DSL Internet service to 68 of Vitro's other US
locations.

"AT&T plays an important role in helping Vitro to continuously
strengthen our technology, while being mindful of our concern
for budget and cost of ownership.  AT&T's network solution
ensures that our personnel have access to the data they need to
operate efficiently, which helps improve our speed to market,
quality and customer service," said Luis Molina, Vitro's IT
Operations officer.

By efficiently and cost-effectively linking Vitro's offices, the
AT&T solution will increase network access speeds, improving
Vitro's ability to share mission-critical information and manage
inventory across the enterprise.  The solution will also provide
augmented security and network redundancy, creating a secure
environment for data transactions across the network.

The contract also includes managed network services, domestic
and international, long distance and toll-free services.

                         About AT&T

AT&T Inc. -- http://www.att.com-- is one of the world's largest
telecommunications holding companies and is the largest in the
United States.  Operating globally under the AT&T brand, AT&T
companies are recognized as the leading worldwide providers of
IP-based communications services to business and as leading US
providers of high-speed DSL Internet, local and long distance
voice, and directory publishing and advertising services.  AT&T
Inc. holds a 60% ownership interest in Cingular Wireless, which
is the No. 1 US wireless services provider with more than 55.8
million wireless customers.

                         About Vitro

Headquartered in Nuevo Leon, Mexico, Vitro, S.A. de C.V. --
http://www.vitro.com/-- (NYSE: VTO; BMV: VITROA), through its
subsidiary companies, is one of the world's leading glass
producers.  Vitro is a major participant in three principal
businesses: flat glass, glass containers and glassware.  Its
subsidiaries serve multiple product markets, including
construction and automotive glass; food and beverage, wine,
liquor, cosmetics and pharmaceutical glass containers; glassware
for commercial, industrial and retail uses.  Vitro also produces
raw materials and equipment and capital goods for industrial
use, which are vertically integrated in the Glass Containers
business unit.

Founded in 1909 in Monterrey, Mexico-based Vitro has joint
ventures with major world-class partners and industry leaders
that provide its subsidiaries with access to international
markets, distribution channels and state-of-the-art technology.
Vitro's subsidiaries have facilities and distribution centers in
eight countries, located in North, Central and South America,
and Europe, and export to more than 70 countries worldwide.

                        *    *    *

As reported in the Troubled Company Reporter on Mar. 27, 2006,
Standard & Poor's Ratings Services lowered its long-term local
and foreign currency corporate credit ratings assigned to glass
manufacturer Vitro S.A. de C.V. and its glass containers
subsidiary Vitro Envases Norteamerica S.A. de C.V. (Vena) to
'B-' from 'B'.

Standard & Poor's has also lowered the long-term national scale
corporate credit rating assigned to Vitro to 'mxBB+' from
'mxBBB-'.  S&P said the outlook is negative.

Standard & Poor's also lowered the rating assigned to Vitro's
notes due 2013 and Servicios y Operaciones Financieras Vitro
S.A. de C.V. notes due 2007 (which are guaranteed by Vitro) to
'CCC' from 'CCC+'.




===========
P A N A M A
===========


* PANAMA: Posts Fiscal Year 2006 Second Quarter Canal Metrics
-----------------------------------------------------------
The Panama Canal Authority or ACP -- the autonomous agency of
the government of Panama in charge of managing, operating and
maintaining the Panama Canal -- reported second quarter
operational metrics for fiscal year 2006.

During the second quarter, there was an increase in net tonnage,
total transits and transits of Panamax vessels.  There was also
a decrease in official accidents.  Canal Waters Time or CWT, the
average time it takes a vessel to transit the canal including
waiting time for passage, increased in the second quarter and
booking slot utilization remained steady.  These metrics are
based on operations from January through March, the second
quarter of the ACP's 2006 fiscal year.

Panama Canal/Universal Measurement System or PC/UMS tonnage
increased 5.7% -- to 75.0 million PC/UMS tons from 70.9 million
PC/UMS tons.

In addition to a spike in tonnage, the Canal realized an
increase in traffic.  Total Canal transits increased 3.5 percent
-- to 3,862 transits from 3,730.  Transits of Panamax vessels --
100 feet or more in beam and the largest vessels that can pass
through the Canal -- increased 7.5% to 1,501 transits from
1,396.

"The ACP's hard work reaped rewards this past quarter, as
demonstrated by the figures we are presenting today. The Canal
is seeing more tonnage, increased traffic and a drop in
accidents. I commend the ACP's world-class workforce that
relentlessly strives to ensure a safe and reliable service for
our customers," said ACP Maritime Operations Director Jorge L.
Quijano.

The official accident rate decreased 3.4 percent -- to 1.04
accidents per 1,000 transits from 1.07 accidents per 1,000
transits in FY 05. An official accident is one in which a formal
investigation is requested and conducted.

Overall CWT increased 15.8% to 30.08 hours from 25.98 hours.
However, CWT for booked vessels -- those ships holding
reservations -- increased slightly by 3.4% to 16.85 hours from
16.30 hours.  "The rise in CWT can be attributed to several
factors.  Foremost, world trade is booming and demand for the
Canal's services is increasing.  Second, grain exports (through
the Gulf ports to Asia) have increased significantly, especially
since the infrastructure in the New Orleans area has shown firm
signs of recovery from the effects of Hurricane Katrina. Third,
the additional surge in traffic occurred during the Canal's peak
season, thus creating an unusually high backlog," said Mr.
Quijano.

Utilization of the booking system increased 11.6% to 2,006
booked transits -- those ships holding reservations -- this year
from 1,797 in 2005.  As a consequence of this, the percentage of
booked transits to oceangoing transits increased 9.6 percent --
to 59.9% this year from 54.7% last year.  The increase in booked
transits resulted from a 12.3% increase in the number of booking
slots made available to 2,129 this year from 1,896 last year.
This increase in available booking slots is in response to the
needs expressed by our customers.

                        *    *    *

Fitch Ratings assigned these ratings on Panama:

                     Rating     Rating Date
                     ------     -----------
   Country Ceiling    BBB      Apr.  8, 2005
   Long Term IDR      BB+      Dec. 14, 2005
   Short Term IDR       B      Dec. 14, 2005
   Local Currency
   Long Term Issuer
   Default Rating     BB+      Dec. 14, 2005




===============
P A R A G U A Y
===============


TELECOM PERSONAL: Will Invest US$12 Million to Expand Network
-------------------------------------------------------------
Telecom Personal, the Parguayan unit of Telecom Argentina, plans
to invest US$12 million this year mainly to expand its coverage
and improve its quality of service, according to local newspaper
ABC Color.

Business News Americas relates that Telecom Personal is
extending service in Ciudad del Este.  The area of expansion
includes:

   -- Alto Parana,
   -- Caazapa,
   -- Caaguazu,
   -- Guaira, and
   -- Canindeyu e Itapua.

According to BNamericas, Telecom Personal invested about US$200
million in eight years of operating in Paraguay, currently
having more than 600,000 subscribers and about 120,000 broadband
Internet customers.

                        *    *    *

As reported in the Troubled Company Reporter on April 27, 2006,
Fitch Ratings assigned these ratings to Telecom Personal S.A.:

    -- 'B' foreign currency rating, outlook stable
    -- 'B' local currency rating, outlook stable
    -- US$500 million, Senior Unsecured Notes due 2010:
       New IDR: 'B/RR4'

                        *    *    *

As reported in the Troubled Company Reporter on April 26, 2006,
Standard & Poor's Ratings Services raised upgraded Telecom
Personal S.A.'s foreign and local currency corporate credit
rating to B from B-.


* PARAGUAY: IMF Approves US$97 Mil. Loan to Spur Economic Growth
----------------------------------------------------------------
The Executive Board of the International Monetary Fund or IMF
has approved a 27-month US$97 million Stand-By Arrangement for
Paraguay to support the country's economic program.  The
approval makes US$37 million immediately available.  However,
the authorities have indicated their intention to treat the
arrangement as precautionary.

The main objectives of the arrangement are to reduce
vulnerabilities that were exposed during the 2002 crisis,
entrench the stability achieved under the previous Stand-By
Arrangement by strengthening macroeconomic fundamentals, and to
lay the foundation for a gradual increase in economic growth to
4-5 percent per annum on a sustainable basis.

Following the Executive Board discussion on May 31, 2006, Mr.
Takatoshi Kato, Deputy Managing Director and Acting Chairman,
said, "Paraguay, under its previous Fund-supported program,
successfully stabilized its economy under very difficult
conditions.  The adoption of a strong policy framework,
incorporating well-targeted macroeconomic policies and an
ambitious structural reform agenda, enabled the authorities to
avert a full-fledged crisis.  In this context, government
arrears were cleared as part of a prudent fiscal policy, and
strengthened financial regulations and a supportive monetary
policy restored confidence in the financial system.  In this
improved policy environment, economic growth resumed,
international reserves increased, and inflation and unemployment
were reduced."

Mr. Kato noted, "While much has been achieved over the past two
years, important challenges remain, including the further
strengthening of macroeconomic fundamentals and addressing
remaining vulnerabilities through institutional reform.  This
will entail sustaining fiscal consolidation, reinforcing
monetary policy, further strengthening the financial system, and
structural reforms aimed at removing impediments to growth and
alleviating poverty."

According to Mr. Kato, the authorities' program for 2006-08
addresses the challenges, with an objective, over the medium-
term, of establishing the foundations for doubling the annual
rate of real GDP growth to 4-5 percent.  This program will be
supported by a new 27-month Stand-By Arrangement.

"Fiscal policy includes as a medium-term objective the further
reduction of the debt burden," said Mr. Kato.  "For 2006, the
targeted zero public financial deficit reflects a financial plan
that incorporates significant expenditure restraint relative to
the approved budget.  The realization of fiscal balances
targeted for 2007-08 will support a further decline in public
debt."

Mr. Kato stated, "Monetary policy will be set with the objective
of bringing inflation to low single digits by the end of the
arrangement.  For 2006, the continuation of tight monetary
polices is targeted to limit inflation to 7%.  Important
institutional reforms in the fiscal and monetary areas will
support the strengthened policy framework encompassed in the
program."

Mr. Kato said that these constitute important building blocks
for the program:

  -- structural reforms,
  -- pro-growth policies, and
  -- a strategy for poverty reduction.

"Envisaged measures include improving expenditure control,
modernizing the tax code, and restructuring of the public
enterprises.  In the financial sector, enhancements to
regulations and legislation and strengthening the balance sheets
of the central bank and the national development bank are
planned.  Measures to improve to Paraguay's business climate and
the introduction of conditional cash transfer mechanism for poor
families round out the foreseen structural reforms," Mr. Kato
related.

"These policies will help strengthen macroeconomic fundamentals
further, and lay the foundations for a gradual increase in
economic growth over the medium term, thereby allowing Paraguay
to reverse the vicious cycle of low growth and declining per
capita income, which prevailed over the last quarter of a
century," Mr. Kato said.

Following an acute recession in 2002, which was triggered by a
regional crisis and a poor agricultural harvest, Paraguay has
been recovering.  The country had its the best macroeconomic
results in a decade during 2004, with the support of the Stand-
By Arrangement agreed with the Fund in December 2003.  The
program was highly successful in helping to stabilize Paraguay's
economy.

The economy suffered again from a variety of supply shocks in
2005.  A drought, higher international oil prices and a rapid
strengthening of the Brazilian real led to a reduction in
economic growth and an increase in inflation.  Notwithstanding
these shocks, fiscal discipline was preserved, and reserves
continued growing to record levels in 2005.  All in all, the
main objectives of the previous arrangement were achieved.
However, a number of challenges arose in 2006 with the
continuation of a drought, persistent inflationary pressures,
and a large and under-financed budget approved by Congress.

The key objectives of the 27-month program are securing
macroeconomic stability, creating the conditions for sustained
high growth, and reducing poverty.  Paraguay has to continue
strengthening fundamentals and address remaining
vulnerabilities.  Significant institutional reform efforts are
needed to sustain the recent macroeconomic achievements and
mitigate vulnerabilities.  These efforts include reforms to
sustain fiscal consolidation, strengthen monetary policy
operations to reduce inflation, further strengthen the financial
system, and remove impediments to growth.

The country's main weaknesses identified by the IMF staff
included:

   -- political instability that translated into economic policy
      instability;

   -- governance problems that led to corruption and kept growth
      low;

   -- a weak financial system beset by a series of crises;

   -- inefficient public enterprises in key sectors that
      depressed efficiency and economic performance;

   -- low and falling productivity which resulted in low growth;
      and

   -- high poverty and unemployment with limited social
      protection.

The 2006-08 program has been tailored to address these economic
weaknesses.

A strong macroeconomic program needs to be entrenched to avoid
previous problems.  Although macroeconomic management has
improved, over the past decade, weak policy responses have
exacerbated the impact of external shocks on output, employment
and inflation, and have undermined confidence, leading to a
number of financial crises.

The public sector reform is designed to address remaining fiscal
vulnerabilities and rigidities, including tackling deficiencies
in budgetary planning and expenditure control, institutionalize
improvements in tax collections and reduce rigidities in current
expenditures.

Reforming the financial sector is key. Over the last decade,
public confidence in the banking system declined due to a number
of banking crises.  Consequently, financial sector assets and
liabilities are short-term, constraining financial
intermediation and long-term investment.

Paraguay has experienced long-term low growth and thus needs to
further a pro-growth agenda.  Per capita GDP fell by 7% in real
terms over the last 25 years.  Shocks and structural impediments
hamper growth and restrain employment. To reinvigorate growth,
there is a need to embrace reform in many diverse areas.

The latest IMF-supported program seeks to alleviate widespread
poverty, and mitigate the social costs of reform.  Lack of
access to water and sanitary resources are one of the main
concerns and attempts are being made to resolve this issue.
About a third of the population is poor and about a sixth of the
population lives under conditions of extreme poverty.

                        *    *    *

As reported in the Troubled Company Reporter on May 26, 2006,
Moody's Investors Service upgraded these ratings on Paraguay:

   -- Long-term foreign currency rating: B3 from Caa1 with
      stable outlook.

Moody's assigned this rating:

   -- Short-term foreign currency rating: Not Prime.

                        *    *    *

Standard & Poor's assigned these ratings on Paraguay:

     -- Foreign Currency LT Debt B-
     -- Local Currency LT Debt   B-
     -- Foreign Currency ST Debt C
     -- Local Currency ST Debt   C




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


* PERU: New President Aims to Increase Trade Ties with US
---------------------------------------------------------
The newly elected president of Peru, Alan Garcia, aims to
increase trade cooperation with the United States as part of his
national plan to generate more jobs and raise wages, Bloomberg
News reports.

Bloomberg relates that Mr. Garcia said Peru needs to be part of
the global economy.  He endorsed a free trade accord with the US
as it is Peru's largest trading partner and is accounted for
more than one-third of the country's US$17-billion worth of
exports in 2005.

Mr. Garcia told Bloomberg, "The global economy will continue to
favor the development of our country and there will be grave
short-term consequences for us if we cut those ties."

In line with intensifying trade with the US, Mr. Garcia will go
against Venezuela's President Hugo Chavez in expanding his
influence in Latin America, Bloomberg says.

According to Bloomberg, Mr. Garcia viewed Peruvian's choosing
him as their new president as a move against President Chavez'
populist policies.

"The vote was a defeat for Chavez's expansionist plans that he
is trying to implement in South America, his attempts to annex
us to his retrograde model.  What was at stake here was our
sovereignty, rejecting the pretensions of those who have oil
wealth to dominate us," Mr. Garcia told Bloomberg.

Bloomberg relates that along with increasing trade ties with the
US, Mr. Garcia also aims to limit inflation and keep the budget
deficit in check.

Bloomberg recalls that Peru had the lowest annual inflation
among the 10 biggest Latin American economies in May, arriving
at 2.2%.  From 2001 to 2005, Peru's US$68 billion economy had
average yearly increase of 5%.

Mr. Garcia, according to Bloomberg, told his 5,000 supporters,
"We need to ensure the specter of inflation, that terrorized
many of us, doesn't return to threaten our country.  We need to
ensure the country grows, at the same time as it is
decentralized and creates jobs."

Gianfranco Bertozzi, a Latin America economist with Lehman
Brothers told Bloomberg that Mr. Garcia was trying to reassure
markets that he will be very serious about economic polices and
won't make the same mistakes.

Bloomberg states that Mr. Garcia attempts to redeem himself from
his presidency in the 1980s when he carried out his own populist
agenda that cased higher spending, soaring inflation and a
government debt default.  Mr. Garcia had stepped down from power
in 1990 amid inflation that quickly rose 8,000% and a civil war
waged by the Shining Path guerrillas.  Mr. Garcia's attacks
against President Chavez help show Peruvians he has changed.

Bloomberg says that the finance ministry foresees that the
economy -- led by industries on mining and fish meal -- will
rise 6% this year, following the 6.7% increase in 2005.

                        *    *    *

Fitch Ratings assigned these ratings on Peru:

                     Rating     Rating Date
                     ------     -----------
   Country Ceiling     BB      Nov. 18, 2004
   Long Term IDR       BB      Dec. 14, 2005
   Short Term IDR      B       Dec. 14, 2005
   Local Currency
   Long Term Issuer
   Default Rating      BB+     Dec. 14, 2005


* PERU: S&P Says Garcia's Election Won't Affect Low B Ratings
-------------------------------------------------------------
Standard & Poor's Ratings Services said that the June 4, 2006,
election of Mr. Alan Garcia as the new president of the Republic
of Peru (BB/Positive/B foreign, BB+/Positive/B local currency
sovereign credit ratings) has no immediate impact on its rating
and outlook on the sovereign.

As explained in "Credit FAQ: The Impact Of The Presidential
Election On The Republic of Peru's Credit Outlook," (Ratings
Direct, April 12, 2006), published a few days after the first
round of the presidential elections, any future rating or
outlook changes will depend upon both the economic policy agenda
put forward by the new president and the political support the
he can muster in order to assure governability and consistent
economic policy implementation.

Significant deviation from the current trend in economic
policies, or developments that weaken Peru's institutional
framework and macroeconomic stability, will likely reverse the
current upward rating momentum.  Conversely, success in
consolidating political support for progrowth policies that
result in improved fiscal and external indicators would
gradually improve Peru's financial profile, potentially leading
to a ratings upgrade.




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


ADELPHIA COMMS: Plan Voting Deadline Extended Until June 19
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
extended the deadline for the submission of ballots to accept or
reject the Modified Fourth Amended Joint Plan of Reorganization
of Adelphia Communications Corporation and its debtor-
affiliates.

Pursuant to the Court's extension order, the voting deadline to
accept or reject the Plan has been extended to 4:00 p.m., New
York time, on June 19, 2006, and in the case of securities held
through an intermediary, the deadline for instructions to be
received by the intermediary has been extended to 4:00 p.m., New
York time, on June 14, 2006.

The Extension Order also adjourned the second hearing to
consider confirmation of the Plan that was scheduled to begin on
June 20, 2006.

Based in Coudersport, Pa., Adelphia Communications Corporation
-- http://www.adelphia.com/-- is the fifth-largest cable
television company in the country.  Adelphia serves customers in
30 states and Puerto Rico, and offers analog and digital video
services, high-speed Internet access and other advanced services
over its broadband networks.  The Company and its more than 200
affiliates filed for Chapter 11 protection in the Southern
District of New York on June 25, 2002.  Those cases are jointly
administered under case number 02-41729.  Willkie Farr &
Gallagher represents the ACOM Debtors.  PricewaterhouseCoopers
serves as the Debtors' financial advisor.  Kasowitz, Benson,
Torres & Friedman, LLP, and Klee, Tuchin, Bogdanoff & Stern LLP
represent the Official Committee of Unsecured Creditors.


GLOBAL HOME: Panel Taps Lowenstein Sandler as Bankruptcy Counsel
----------------------------------------------------------------
The Official Committee of Unsecured Creditors Appointed in
Global Home Products, LLC, and its debtor-affiliates' chapter 11
cases, asks the U.S. Bankruptcy Court for the District of
Delaware for permission to employ Lowenstein Sandler PC as its
bankruptcy counsel.

Lowenstein Sandler will:

    a. provide legal advice as necessary with respect to the
       Committee's powers and duties as an official committee
       appointed under Section 1102 of the Bankruptcy Code;

    b. assist the Committee in investigating the acts, conduct,
       assets, liabilities, and financial condition of the
       Debtors, the operation of the Debtors' business,
       potential claims, and any other matters relevant to the
       cases or to the formulation of a plan of reorganization;

    c. participate in the formulation of a plan;

    d. provide legal advice as necessary with respect to any
       disclosure statement and plan filed in the Debtors'
       chapter 11 cases and with respect to the process for
       approving or disapproving a disclosure statement and
       confirming or denying confirmation of a plan;

    e. prepare on behalf of the Committee, as necessary,
       applications, motions, complaints, answers, orders,
       agreements and other legal papers;

    f. appear in Court to present necessary motions,
       applications, and pleading, and otherwise protect the
       interest of those represented by the Committee;

    g. assist the Committee in requesting the appointment of a
       trustee or examiner should an action be necessary; and

    h. perform other legal services as may be required and are
       in the interest of the Committee and creditors.

Kenneth A. Rosen, Esq., a member at Lowenstein Sandler, tells
the Court that the Firm's professionals bill:

      Professional                   Hourly Rate
      ------------                   -----------
      Partners                     US$320 - US$595
      Counsel                      US$265 - US$425
      Associates                   US$165 - US$300
      Legal Assistants              US$75 - US$150

Mr. Rosen assures the Court that his firm is disinterested as
that term is defined in Section 101(14) of the Bankruptcy Code.

Headquartered in Westerville, Ohio, Global Home Products, LLC
-- http://www.anchorhocking.com/and http://www.burnesgroup.com/
--  sells houseware and home products and manufactures high
quality glass products for consumers and the food services
industry.  The company also designs and markets photo frames,
photo albums and related home decor products.  The company and
16 of its affiliates , including Burnes Puerto Rico, Inc., and
Mirro Puerto Rico, Inc., filed for Chapter 11 protection on
Apr. 10, 2006 (Bankr. D. Del. Case No. 06-10340).  Laura Davis
Jones, Esq., Bruce Grohsgal, Esq., James E. O'Neill, Esq., and
Sandra G.M. Selzer, Esq., at Pachulski, Stang, Ziehl, Young,
Jones & Weintraub LLP, represent the Debtors.  Bruce Buechler,
Esq., at Lowenstein Sandler P.C., represents the Official
Committee of Unsecured Creditors.  When the company filed for
protection from their creditors, they estimated assets between
US$50 million and US$100 million and estimated debts of more
than US$100 million.


GLOBAL HOME: Units File Schedules of Assets & Liabilities
---------------------------------------------------------
Global Home Products LCC's debtor-affiliates delivered to
the U.S. Bankruptcy Court for the District of Delaware their
schedules of assets and liabilities, disclosing:

                         GHP Holding Company LLC
                         -----------------------

     Name of Schedule                Assets         Liabilities
     ----------------                ------         -----------
  A. Real Property                        0
  B. Personal Property                    0
  C. Property Claimed
     as Exempt
  D. Creditors Holding
     Secured Claims                              US$311,636,546
  E. Creditors Holding
     Unsecured Priority Claims
  F. Creditors Holding
     Unsecured Nonpriority
     Claims
                                          --     --------------
     Total                                 0     US$311,636,546


                        GHP Operating Company LLC
                        -------------------------

     Name of Schedule                Assets         Liabilities
     ----------------                ------         -----------
  A. Real Property
  B. Personal Property        US$101,213,330
  C. Property Claimed
     as Exempt
  D. Creditors Holding
     Secured Claims                              US$311,636,546
  E. Creditors Holding
     Unsecured Priority Claims                       US$232,078
  F. Creditors Holding                            US$32,593,954
     Unsecured Nonpriority
     Claims
                                ------------       ------------
     Total                    US$101,213,330     US$344,462,578


                          Mirro Acquisition Inc.
                          ----------------------

     Name of Schedule                Assets         Liabilities
     ----------------                ------         -----------
  A. Real Property                        0
  B. Personal Property                    0
  C. Property Claimed1
     as Exempt
  D. Creditors Holding
     Secured Claims                              US$311,636,546
  E. Creditors Holding
     Unsecured Priority Claims                        US$13,954
  F. Creditors Holding
     Unsecured Nonpriority
     Claims
                                          --     --------------
     Total                                 0     US$311,650,500


                   Anchor Hocking Consumer Glass Corp.
                   -----------------------------------

    Name of Schedule                Assets         Liabilities
     ----------------                ------         -----------
  A. Real Property                        0
  B. Personal Property                    0
  C. Property Claimed
     as Exempt
  D. Creditors Holding
     Secured Claims                              US$311,636,546
  E. Creditors Holding
     Unsecured Priority Claims                        US$47,538
  F. Creditors Holding
     Unsecured Nonpriority
     Claims
                                          --     --------------
     Total                                 0     US$311,684,084


                             Anchor Hocking Inc.
                             -------------------

    Name of Schedule                Assets         Liabilities
     ----------------                ------         -----------
  A. Real Property                        0
  B. Personal Property                    0
  C. Property Claimed
     as Exempt
  D. Creditors Holding
     Secured Claims                              US$311,636,546
  E. Creditors Holding
     Unsecured Priority Claims                         US$1,000
  F. Creditors Holding
     Unsecured Nonpriority
     Claims
                                          --       ------------
     Total                                 0     US$311,637,546


                           Anchor Hocking Acquisition Inc.
                          -------------------------------

    Name of Schedule                Assets         Liabilities
     ----------------                ------         -----------
  A. Real Property                        0
  B. Personal Property                    0
  C. Property Claimed
     as Exempt
  D. Creditors Holding
     Secured Claims                              US$311,636,546
  E. Creditors Holding
     Unsecured Priority Claims                         US$1,000
  F. Creditors Holding
     Unsecured Nonpriority
     Claims
                                          --     --------------
     Total                                 0     US$311,637,546


                      Burnes Operating Company LLC
                      ----------------------------

     Name of Schedule                Assets         Liabilities
     ----------------                ------         -----------
  A. Real Property             US$12,339,446
  B. Personal Property         US$92,846,059
  C. Property Claimed
     as Exempt
  D. Creditors Holding
     Secured Claims                              US$312,079,509
  E. Creditors Holding
     Unsecured Priority Claims                     US$1,124,273
  F. Creditors Holding                            US$23,860,533
     Unsecured Nonpriority
     Claims
                              --------------     --------------
     Total                    US$105,185,505     US$337,064,315


Mirro Operating Company and Mirro Puerto Rico, Inc., filed a
consolidated summary of schedules disclosing:

     Name of Schedule                Assets         Liabilities
     ----------------                ------         -----------
  A. Real Property
  B. Personal Property           US$53,807,089
  C. Property Claimed
     as Exempt
  D. Creditors Holding
     Secured Claims                              US$311,636,546
  E. Creditors Holding
     Unsecured Priority Claims                        US$74,613
  F. Creditors Holding                            US$71,163,176
     Unsecured Nonpriority
     Claims
                               -------------     --------------
     Total                     US$53,807,089     US$382,874,335

Anchor Hocking Operating Company LLC, Anchor Hocking CG
Operating Company LLC, and AH Acquisition Puerto Rico, Inc.,
filed a consolidated summary of schedules disclosing:


     Name of Schedule                Assets         Liabilities
     ----------------                ------         -----------
  A. Real Property             US$45,753,121
  B. Personal Property        US$136,615,285
  C. Property Claimed
     as Exempt
  D. Creditors Holding
     Secured Claims                              US$312,115,846
  E. Creditors Holding
     Unsecured Priority Claims                     US$5,673,229
  F. Creditors Holding                            US$86,405,371
     Unsecured Nonpriority
     Claims
                              --------------     --------------
     Total                    US$181,368,406     US$404,194,446

Headquartered in Westerville, Ohio, Global Home Products, LLC
-- http://www.anchorhocking.com/and http://www.burnesgroup.com/
--  sells houseware and home products and manufactures high
quality glass products for consumers and the food services
industry.  The company also designs and markets photo frames,
photo albums and related home decor products.  The company and
16 of its affiliates , including Burnes Puerto Rico, Inc., and
Mirro Puerto Rico, Inc., filed for Chapter 11 protection on
Apr. 10, 2006 (Bankr. D. Del. Case No. 06-10340).  Laura Davis
Jones, Esq., Bruce Grohsgal, Esq., James E. O'Neill, Esq., and
Sandra G.M. Selzer, Esq., at Pachulski, Stang, Ziehl, Young,
Jones & Weintraub LLP, represent the Debtors.  Bruce Buechler,
Esq., at Lowenstein Sandler P.C., represents the Official
Committee of Unsecured Creditors.  When the company filed for
protection from their creditors, they estimated assets between
US$50 million and US$100 million and estimated debts of more
than US$100 million.


KMART CORP: Big Beaver Settles LaSalle Bank's Claim for US$22MM
---------------------------------------------------------------
In an agreed order signed by Judge Sonderby, Big Beaver of
Florida Development, L.L.C., and LaSalle Bank, N.A., agreed that
Claim No. 43267 will be allowed against Big Beaver for
US$22,020,191, and will be paid in two parts.

Specifically:

    (1) Big Beaver will pay to LaSalle Bank a one-time cash
        payment for US$125,000 that consists of attorney's fees
        for US$75,000 and default interest for US$50,000; and

    (2) LaSalle Bank and Big Beaver will continue to be bound by
        the Real Estate Purchase Agreement, which Big Beaver
        assumes, and the terms of the Note, which Big Beaver
        affirms.  The principal balance of the Note as of
        Oct. 8, 2004, is US$21,895,191.

Under a pooling and servicing agreement dated February 1, 1996,
LaSalle Bank serves as trustee for the holders of the
Structured Asset Securities Corporation Multiclass Pass-Through
Certificates Series 1996-CFL.

In February 1990, Robert A. Mantovani assumed a mortgage in
favor of Southeast Bank, N.A., which was amended and assigned to
LaSalle Bank.

On January 12, 2000, Kmart Corporation purchased from Mr.
Mantovani a real property in Ocala, Florida.  Kmart also assumed
the Mortgage.

Kmart assigned both the Real Estate Purchase Agreement and the
Mortgage to its wholly owned subsidiary, Big Beaver of Florida
Development, L.L.C.

Consequently, LaSalle Bank filed Claim No. 43267, which relates
to the Real Estate Purchase Agreement and the Mortgage.

During Kmart's bankruptcy, LaSalle Bank sought to lift the
automatic stay to pursue its Claim.

After arm's-length negotiations, Big Beaver and LaSalle Bank, as
assigns, settled the Stay litigation.  LaSalle Bank and Big
Beaver then entered into a letter agreement under which Kmart
agreed to treat Claim No. 43267 in accordance with Section
1124(2) of the Bankruptcy Code.

                      About Kmart Corp.

Headquartered in Troy, Michigan, Kmart Corporation (n/k/a KMART
Holding Corporation) -- http://www.bluelight.com/-- operates
approximately 2,114 stores, primarily under the Big Kmart or
Kmart Supercenter format, in all 50 United States, Puerto Rico,
the U.S. Virgin Islands and Guam.  The Company filed for chapter
11 protection on January 22, 2002 (Bankr. N.D. Ill. Case No.
02-02474).  Kmart emerged from chapter 11 protection on May 6,
2003.  John Wm. "Jack" Butler, Jr., Esq., at Skadden, Arps,
Slate, Meagher & Flom, LLP, represented the retailer in its
restructuring efforts.  The Company's balance sheet showed
US$16,287,000,000 in assets and US$10,348,000,000 in debts when
it sought chapter 11 protection.  Kmart bought Sears, Roebuck &
Co., for $11 billion to create the third-largest U.S. retailer,
behind Wal-Mart and Target, and generate US$55 billion in annual
revenues.  The waiting period under the Hart-Scott-Rodino
Antitrust Improvements Act expired on Jan. 27, without complaint
by the Department of Justice.  (Kmart Bankruptcy News, Issue No.
111; Bankruptcy Creditors' Service, Inc., 215/945-7000)


KMART CORP: More Than 50 Creditors Withdraw Proofs of Claim
-----------------------------------------------------------
The Clerk of the U.S. Bankruptcy Court for the Northern District
of Illinois recorded more than 50 notices of withdrawal of
claims, including withdrawals filed by:

       Claimant                                Claim No.
       --------                                ---------
       Azerty                                       4783
       Blistex Inc.                                 1153
       City of Mesquite                            11887
       Don O Daniels, Jr.                          41616
       Florida Tax Collectors                      57668
       GTFM Inc and GTFM LLC                       34053
       Iowa Department of Revenue                  38759
       Iowa Falls Partners                         39507
       James Bingham                                9484
       John Waters                                 46010
       Massachusetts Mutual Life Insurance Co.     41118
       Newman Haas                                 41338
       Olympia Entertainment Inc                   30753
       Reno County Treasurer                       34560
       Sensormatic Electronics Corp.               53904
       Trumbull Group                              57668
       The SBC Corporation                         53750
       Wells Fargo Bank National Association       41812

The Clerk of the Court also recorded claim withdrawals filed by:

       Claimant                             Claim Amount
       --------                             ------------
       City of Mesquite                            82009
       Cox Enterprises Inc.                        76621
       Cox North Carolina Publications Inc.         5852
       Cox Texas Newspapers LP                      8282
       Dayton Newspapers Inc.                      33299
       Grand Junction Newspapers Inc.              14231
       Hitachi High Technologies America Inc.    455,179
       John Waters                             4,178,288
       Olympus America Inc.                      582,899

The Claimants attest that they have not sold, assigned, factored
or otherwise transferred any interest in the Claims.

The Claimants release each of Kmart Corporation, its debtor-
affiliates and their successors, assigns and estates from any
and all claims, liabilities, debts, causes of action or other
obligations arising from, relating to, or in connection with,
the claims.

                      About Kmart Corp.

Headquartered in Troy, Michigan, Kmart Corporation (n/k/a KMART
Holding Corporation) -- http://www.bluelight.com/-- operates
approximately 2,114 stores, primarily under the Big Kmart or
Kmart Supercenter format, in all 50 United States, Puerto Rico,
the U.S. Virgin Islands and Guam.  The Company filed for chapter
11 protection on January 22, 2002 (Bankr. N.D. Ill. Case No.
02-02474).  Kmart emerged from chapter 11 protection on May 6,
2003.  John Wm. "Jack" Butler, Jr., Esq., at Skadden, Arps,
Slate, Meagher & Flom, LLP, represented the retailer in its
restructuring efforts.  The Company's balance sheet showed
US$16,287,000,000 in assets and US$10,348,000,000 in debts when
it sought chapter 11 protection.  Kmart bought Sears, Roebuck &
Co., for US$11 billion to create the third-largest U.S.
retailer, behind Wal-Mart and Target, and generate US$55 billion
in annual revenues.  The waiting period under the Hart-Scott-
Rodino Antitrust Improvements Act expired on Jan. 27, without
complaint by the Department of Justice.  (Kmart Bankruptcy News,
Issue No. 111; Bankruptcy Creditors' Service, Inc., 215/945-
7000)


MUSICLAND HOLDING: Court OKs Expedited Lease Rejection Process
--------------------------------------------------------------
After the closing of the Trans World Entertainment Corporation
sale, Musicland Holding Corp. and its debtor-affiliates will no
longer require many of the properties, goods and services they
obtained under various executory contracts and unexpired leases
to which they are party, James H.M. Sprayregen, Esq., at
Kirkland & Ellis LLP, in New York, tells the U.S. Bankruptcy
Court for the Southern District of New York.

Accordingly, pursuant to Sections 365 and 554 of the Bankruptcy
Code, the Debtors sought and obtained the Court's approval of
expedited procedures for rejecting executory contracts and
unexpired personal and residential real property leases.

   A. The Rejection Notice

      1. The Debtors will file written notice to reject any
         Contract pursuant to Section 365(a) and will serve the
         Rejection Notice on:

         -- the Office of the United States Trustee for the
            Southern District of New York;

         -- Hahn & Hessen LLP, the counsel for the Official
            Committee of Unsecured Creditors;

         -- Morgan Lewis & Bockius LLP, the counsel for the
            Informal Committee of Secured Trade Vendors;

         -- Skadden, Arps, Slate, Meagher & Flom, LLP, the
            counsel for TWEC;

         -- the Contract counter-party, landlord and subtenant
            affected by the Rejection Notice; and

         -- any other parties-in-interest to the Contract the
            Debtors want to reject.

      2. The Rejection Notice will advise the Service Parties of
         the Debtors' intent to reject the Contract, as well as
         the deadlines and procedures for filing objections to
         the Rejection Notice.

      3. The Rejection Notice will attach a copy of the Order
         approving the Debtors' Motion for Expedited Rejection
         Procedures and will contain, as applicable:

         -- a general description of the Contract;

         -- the name and address of the Contract Counterparty
            and when the Contract involves real property, the
            street address for that real property; and

         -- a general description of any de minimis assets
            located or contained within the property subject to
            a Contract that the Debtors wish to abandon.

   B. Objections to Rejection

      1. If a Contract Counterparty objects to the Debtors'
         proposed rejection of a Contract, that party must file
         and serve a written objection with the Court and it
         must be received no later than 10 days after the date
         the Debtors served the Rejection Notice by:

           -- Kirkland & Ellis LLP, the Debtors' counsel; and
           -- the Service Parties;

         provided that any objection need not be served on any
         Counterparty to a Contract not the subject of that
         objection.

      2. If a party files a timely objection that cannot be
         consensually resolved, the Court will schedule a
         hearing to consider that objection.  If that objection
         is overruled or withdrawn, or if the Court when ruling
         on the objection does not determine the date of
         rejection, the Rejection Date of that Contract will be
         the date the Rejection Notice was served on the Service
         Parties or the date as may be indicated in the
         Rejection Notice.

   C. Effectiveness of Rejection

      1. If no party files an objection within 10 days of the
         date the Debtors serve the Rejection Notice, the
         rejection of a Contract will become effective as of the
         date the Rejection Notice was served on the Service
         Parties, or the date as may be indicated in the
         Rejection Notice without further notice, hearing or
         Court order.

      2. Even where there is an objection to a Contract on a
         particular Rejection Notice, any and all other
         Contracts that may be contained on the same Rejection
         Notice to which there is no timely objection will be
         deemed rejected as of the Rejection Date.

If the Debtors have deposited funds with a Contract Counterparty
as a security deposit or other arrangement, that Counterparty
may not set off or use that deposit without prior Court
approval.

The Court authorizes the Debtors to abandon any unsold fixtures
or other de minimis assets located within the property subject
to a Contract without any liability to the Counterparty of the
applicable Contract; provided that the Rejection Notice
describes:

   -- the property to be abandoned;

   -- states the reason for the proposed abandonment; and

   -- identifies the entity to whom the property is proposed to
      be abandoned.

Upon the rejection of a Contract pursuant to a Rejection Notice,
all Counterparties to that Contract will be required to file
rejection damages claims, if any, by the later of:

   (i) the General Claims Bar Date; or

  (ii) 30 days after the Debtors served the Rejection Notice.

Judge Bernstein rules that the Debtors will provide:

   (a) Retail Choice LLC with a minimum of 60 days written
       notice of their intent to reject the customer agreement
       dated June 1, 2005, between Retail Choice and the
       Debtors; and

   (b) FrontNet Solutions, LLC, with a minimum of 60 days
       written notice of their intent to reject the master
       services agreement dated August 6, 2003, between FrontNet
       and the Debtors;

provided that Retail Choice and FrontNet continue to perform
under the Customer Agreement and the Master Agreement, until the
Agreement are deemed rejected.

Headquartered in New York, New York, Musicland Holding Corp., is
a specialty retailer of music, movies and entertainment-related
products.  The Debtor and 14 of its affiliates filed for chapter
11 protection on Jan. 12, 2006 (Bankr. S.D.N.Y. Lead Case No.
06-10064).  James H.M. Sprayregen, Esq., at Kirkland & Ellis,
represents the Debtors in their restructuring efforts.   Mark T.
Power, Esq., at Hahn & Hessen LLP, represents the Official
Committee of Unsecured Creditors.  When the Debtors filed for
protection from their creditors, they estimated more than US$100
million in assets and debts.  (Musicland Bankruptcy News, Issue
No. 12; Bankruptcy Creditors' Service, Inc., 215/945-7000)


SUNCOM WIRELESS: March 31 Stockholders' Deficit Tops US$228 Mil.
----------------------------------------------------------------
SunCom Wireless Holdings Inc. reported a US$147,205,000 net loss
on US$201,892,000 of total revenues for the three months ended
March 31, 2006.

At March 31, 2006, the Company's balance sheet showed
US$1,848,318,000 in total assets, US$2,076,514,000 in total
liabilities, and US$116,000 in minority interest, resulting in a
US$228,312,000 stockholders' deficit.

Full-text copies of the Company's financial statements for the
three months ended March 31, 2006, are available for free at
http://ResearchArchives.com/t/s?aa3

Based in Berwyn, Pennsylvania, SunCom Wireless Holdings Inc. --
http://www.suncom.com/-- fka Triton PCS, Inc., is licensed to
provide digital wireless communications services in the
southeastern United States, Puerto Rico and the U.S. Virgin
Islands.  As of Dec. 31, 2005, the network covers approximately
14.8 million potential customers in North Carolina, South
Carolina, Tennessee and Georgia and 4.1 million potential
customers in Puerto Rico and the U.S. Virgin Islands.

At March 31, 2006, the company's stockholders' deficit widened
to US$228,312,000 from an US$83,266,000 deficit at Dec. 31,
2005.

                        *    *    *

As reported in the Troubled Company Reporter on March 22, 2006,
Standard & Poor's Ratings Services held its ratings on Berwyn,
Pennsylvania-based SunCom Wireless Holdings Inc. and its
operating subsidiaries, including the 'CCC+' corporate credit
rating, on CreditWatch, where they were placed with negative
implications on Jan. 23, 2006.

The 'B-' bank loan rating for Suncom Wireless Inc. remained on
CreditWatch with negative implications, but the bank loan
recovery rating of '1' is not on CreditWatch, indicating high
expectations for full (100%) recovery of principal in the event
of bankruptcy or payment default.




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


MIRANT: DOE & EPA Order Offer How to Boost Potomac River Ops
------------------------------------------------------------
Directives issued by the U.S. Department of Energy and the U.S.
Environmental Protection Agency will provide for immediate
increased operations of Mirant Corporation's 482-MW Potomac
River Generating Station located in Alexandria, Virginia.

An Administrative Compliance Order entered into with EPA
prescribes how the plant can increase production, to near normal
levels, as long as the plant meets the National Ambient Air
Quality Standards in the greater Washington D.C. and Northern
Virginia area.  The directive from DOE requires that Mirant
comply with the ACO and increase generation to ensure an
adequate level of electric reliability in the Central D.C. area.

Under the ACO, Mirant will operate the plant using day-ahead
forecasted weather data rather than worst-case five-year
estimates contained in computer models.  In addition, Mirant
will install equipment that monitors sulfur dioxide in the
vicinity of the plant.

"The Department of Energy understands just how critical the
Potomac River Generating Station is to electric reliability in
the Nation's Capital area," Bob Driscoll, Chief Executive
Officer, Mirant Mid-Atlantic, said.  "The Potomac River
Generating Station is an essential, low-cost and reliable source
of electricity to the region."

The DOE directive takes into account concerns about air quality
in the greater Washington, D.C. region, including Northern
Virginia.  "The important thing is that this plant be allowed to
operate to serve the electricity needs for the residents in this
region," Mr. Driscoll remarked.  "We will do so while meeting
our responsibilities for environmental stewardship."

The Potomac River Generating Station provides electricity for
dozens of federal agencies and facilities, and much of downtown
D.C.  It is also tied directly to the Blue Plains Waste Water
Treatment Plant and the U.S. Naval Research Laboratory.

The directive of U.S. Department of Energy is available for free
at http://ResearchArchives.com/t/s?ad5

The Administrative Compliance Order of the U.S. Environmental
Protection Agency is available for free at:

               http://ResearchArchives.com/t/s?ad4

Headquartered in Atlanta, Georgia, Mirant Corporation (NYSE:
MIR) -- http://www.mirant.com/-- is a competitive energy
company that produces and sells electricity in North America,
the Caribbean, and the Philippines.  Mirant owns or leases more
than 18,000 megawatts of electric generating capacity globally.
Mirant Corporation filed for chapter 11 protection on July 14,
2003 (Bankr. N.D. Tex. 03-46590), and emerged under the terms of
a confirmed Second Amended Plan on January 3, 2006.  Thomas E.
Lauria, Esq., at White & Case LLP, represented the Debtors in
their successful restructuring.  When the Debtors filed for
protection from their creditors, they listed US$20,574,000,000
in assets and US$11,401,000,000 in debts.

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 8, 2005,
Standard & Poor's Ratings Services placed a 'B+' corporate
credit rating on Mirant Corporation and said the outlook is
stable.


MIRANT CORP: Pirate Capital Questions NRG Energy Bid
----------------------------------------------------
Pirate Capital LLC informed Mirant Corporation's Board of
Directors on June 1, 2006, that it does not believe that
entering into a hostile bidding war for NRG Energy Inc. is not
in the best interest of Mirant's shareholders.

Pirate Capital further urged Mirant's board to engage a
financial advisor and initiate a process to put itself up for
sale.  Pirate Capital, as the investment advisor to Jolly Roger
Fund LP and Jolly Roger Offshore Fund LTD, is the beneficial
owner of approximately 5 million shares, or 1.6%, of Mirant's
common stock.

Thomas R. Hudson Jr., Portfolio Manager at Pirate Capital, said
in a letter to Mirant's board: "...while we believe that
consolidation in the power sector is necessary, we question
whether Mirant should be a consolidator.  Mirant's reported
first quarter 2006 earnings and outlook give proof to the
strength of its assets.  We believe shareholders would be
substantially rewarded if Mirant put itself up for sale."

As reported in the Troubled Company Reporter on May 31, 2006,
Mirant Corporation made a proposal to acquire NRG at a premium
of approximately 33% to NRG's share price as of May 30, 2006.
Mirant had received a financing commitment from JPMorgan of
approximately US$11.5 billion for the transaction.  NRG flatly
rejected the proposal without engaging in any discussions with
Mirant.  Mirant Corporation is seeking a court order in Delaware
directing NRG not to obstruct its unsolicited takeover bid.

                        About Mirant

Headquartered in Atlanta, Georgia, Mirant Corporation
(NYSE: MIR) -- http://www.mirant.com/-- is a competitive energy
company that produces and sells electricity in North America,
the Caribbean, and the Philippines.  Mirant owns or leases more
than 18,000 megawatts of electric generating capacity globally.
Mirant Corporation filed for chapter 11 protection on July 14,
2003 (Bankr. N.D. Tex. 03-46590), and emerged under the terms of
a confirmed Second Amended Plan on January 3, 2006.  Thomas E.
Lauria, Esq., at White & Case LLP, represented the Debtors in
their successful restructuring.  When the Debtors filed for
protection from their creditors, they listed US$20,574,000,000
in assets and US$11,401,000,000 in debts.  (Mirant Bankruptcy
News, Issue Nos. 96 & 97; Bankruptcy Creditors' Service, Inc.,
215/945-7000)

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 8, 2005,
Standard & Poor's Ratings Services placed a 'B+' corporate
credit rating on Mirant and said the outlook is stable.




=============
U R U G U A Y
=============


BANCO ITAU (URUGUAY): Fitch Revises Ratings Outlook to Positive
---------------------------------------------------------------
Fitch Ratings revised Banco Itau BBA - Uruguay Branch's Rating
Outlook on the foreign and local currency Issuer Default Rating
to Positive from Stable after taking the same action on the
sovereign IDR.

The bank's ratings are:

   -- Long-term foreign currency Issuer Default Rating 'B+';
   -- Long-term local currency IDR 'BB-';
   -- Support Rating '4'; and
   -- National long-term rating 'AA' with Stable Outlook.

The bank's long-term ratings reflect its status as a branch of
Banco Itau BBA and the quality of its parent, Banco Itau Holding
Financiera, which has ratings of 'BB-' with a Positive Outlook
for the long-term foreign currency IDR, restricted by the
sovereign ceiling, and 'AA' for the long-term National rating.
The ratings also reflect the strong supervision by BIHF of
credit, market, and operational risks, the group's good access
to credit, and the good performance of Banco Itau BBA S.A.  Its
international ratings are constrained by those of the sovereign
and of its parent.

Banco Itau BBA S.A., one of the largest banks operating in
Brazil, is controlled almost entirely by BIHF, which also holds
a 100% equity stake in Banco Itau S.A. and reported assets and
equity of US$64.6 billion and US$6.6 billion, respectively, at
the end of 2005.


NUEVO BANCO: Advent International Completes Acquisition of Bank
---------------------------------------------------------------
Advent International has completed the purchse of Nuevo Banco
Comercial S.A. from the Uruguayan government.  The transaction,
which has been approved by the Central Bank of Uruguay, is
valued at US$167 million.

NBC is Advent's seventh investment in the financial services
sector in Latin America.  As the lead investor in the NBC
transaction, Advent arranged and is managing a syndicate of co-
investors, including Morgan Stanley Alternative Investment
Partners and two of Europe's largest development banks, the
Netherlands Development Finance Company (FMO) and DEG-Deutsche
Investitions-und Entwicklungsgesellschaft mbH.

NBC was formed by the Uruguayan government in December 2002
through the acquisition of assets from three banks that had been
suspended during the country's 2001-2002 banking crisis.  The
three banks are:

  -- Banco Comercial,
  -- Banco de Montevideo, and
  -- Banco Caja Obrera.

The structure of the acquisition process enabled NBC to select
the best assets from each bank, including the highest-quality
loan portfolios, branches, staff and infrastructure.

NBC has close to US$1 billion in assets and a net worth of
US$181 million.  The company provides a complete range of
banking services, including corporate and personal loans, credit
cards, car loans, export and import finance, to over 200,000
retail and corporate customers.  NBC is the largest among
private banks in performing loans and net worth and second in
total assets and liabilities.  It is also the leading credit-
card issuer in Uruguay, with approximately 35% market share and
some 108,000 active accounts.

"NBC is an excellent, well-managed institution, having been
formed by combining the best assets of three of Uruguay's
largest banks.  The bank has a solid balance sheet and excellent
prospects for growth.  We look forward to working with
management to develop NBC's product lines, improve profitability
and continue driving loan portfolio growth," said Ernest
Bachrach, Chief Executive of Advent's Latin American operations.

"NBC's partnership with international, long-term investors of
this caliber is great news for our customers.  The investors'
world-class reputation and strong commitment to the region
provides us with an exceptional platform from which we can grow.
In addition, Advent's international experience and expertise
will help us enhance the services and products to our customers
in Uruguay and abroad," said Jose Fuentes, Chief Executive
Officer of NBC.

Since the restructuring of Uruguay's banking sector in 2002,
there has been significant consolidation. The sector currently
comprises two state-owned banks, Banco de la Republica Oriental
del Uruguay aka BROU and Banco Hipotecario del Uruguay aka BHU,
13 private banks, including NBC, and a number of credit
cooperatives.  NBC has the most extensive branch network among
private banks and is the only one with a truly national reach.
In many cities, it is the sole bank alongside BROU.

The Uruguayan economy has recovered strongly after a long
recession, with GDP growing over 12% in 2004 and 6.6% in 2005.
Historically, the financial services sector, particularly
banking, has grown 1.5 times faster than the economy.  Assuming
average GDP growth of 3% a year until 2010, the demand for
financial and banking services in the next four years is
expected to be substantial.  The surge in demand combined with
reduced competition should provide significant growth
opportunities for NBC.

                        *    *    *

As reported in the Troubled Company Reporter on May 4, 2006,
Fitch Ratings assigned a long-term local currency issuer
default rating of 'BB-' to Nuevo Banco Comercial.  At the same
time, Fitch affirmed these ratings:

   -- Foreign currency long-term IDR at 'B+';
   -- Support '4'; and
   -- National Long-term rating at 'AA-(uy)'.




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


PETROLEOS DE VENEZUELA: Will Spend US$1.4B for Oil Exploration
--------------------------------------------------------------
Petroleos de Venezuela aka PDVSA, the state-run oil firm of
Venezuela, told Xinhua News Agency that it will invest US$1.4
billion for the exploitation of 25 oil fields in 2006.

Xinhua relates that the company will work with Chevron Corp. and
Petroleo Brasileiro aka Petrobras in the exploitation of the
fields.

Eulogio Del Pino, an official in PDVSA, disclosed at a press
conference that the company is planning to spend about US$800
million in investments and some US$600 million in spending for
this year.

                         About PDVSA

Petroleos de Venezuela SA aka PDVSA is Venezuela's state oil
company in charge of the development of the petroleum,
petrochemical and coal industry, as well as planning,
coordinating, supervising and controlling the operational
activities of its divisions, both in Venezuela and abroad.

                        About Petrobras

Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro
S.A. aka Petrobras was founded in 1953.  The company explores,
produces, refines, transports, markets, distributes oil and
natural gas and power to various wholesale customers and retail
distributors in the country.

                        *    *    *

Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's and its foreign currency long-term debt is
rated BB by Fitch.

                        *    *    *

Fitch assigned these ratings on Petroleo Brasileiro's senior
unsecured notes:

  Maturity Date           Amount        Rate       Ratings
  -------------           ------        ----       -------
  April  1, 2008      US$400,000,000    9%          BB+
  July   2, 2013      US$750,000,000    9.125%      BB+
  Sept. 15, 2014      US$650,000,000    7.75%       BB+
  Dec.  10, 2018      US$750,000,000    8.375%      BB+

                        *    *    *

On Jan. 23, 2005, Fitch Ratings upgraded the local and foreign
currency ratings of Petroleos de Venezuela S.A. aka PDVSA to
'BB-' from 'B+'.  The rating of PDVSA's export receivable
future flow securitization, PDVSA Finance Ltd, was also upgraded
to 'BB+' from 'BB'.  In addition, Fitch has assigned PDVSA a
'AAA(ven)' national scale rating.  Fitch said the Rating Outlook
is Stable.  Both rating actions followed Fitch's November 2005
upgrade of Venezuela's sovereign rating.


* Jeffery J. Stegenga Joins Alvarez & Marsal as Managing Dir.
-------------------------------------------------------------
Alvarez & Marsal, a leading global professional services firm,
announced that Jeffery J. Stegenga, nationally regarded as a
specialist in out-of-court restructuring, bankruptcy consulting,
lender advisory and financial and accounting consulting, will be
joining as a managing director and member of the firm's
Executive Committee for U.S. Restructuring on Sept. 1, 2006.
Based in Dallas, he will also lead A&M's Central Region, which
includes offices in Detroit, Chicago and Houston, as well as
Dallas.

"We are pleased and proud that this consummate restructuring
professional shares our core values and will be joining our
team," said Bryan Marsal, co-CEO of Alvarez & Marsal.  "He has
an exceptional track record handling numerous complex cases
across a broad range of industries and will be a vital member of
the leadership team in our global restructuring business."

Mr. Stegenga is currently a senior managing director with FTI
Consulting's corporate finance and restructuring practice.  His
notable engagements include: Federal-Mogul Corporation; Dow
Corning; Musicland Group; Sleepmaster, Inc.; McDermott
International/Babcock & Wilcox; and Harnischfeger Industries,
among others. Over the course of his career, he has also worked
with numerous secured lenders and syndicated bank groups in
comprehensive business and collateral analyses.  Before joining
FTI, he was a partner with the U.S. division of
PricewaterhouseCoopers' Business Recovery Services practice in
Dallas.

                       Alvarez & Marsal

Alvarez & Marsal -- http://www.alvarezandmarsal.com/ -- is a
leading global professional services firm with expertise in
guiding underperforming companies and public sector entities
through complex operational, financial and organizational
challenges.  The firm excels in problem solving and value
creation, and brings a bias toward executing solutions with a
distinctive hands-on approach to serving clients, management and
stakeholders.

Founded in 1983, Alvarez & Marsal draws on its strong
operational heritage to provide specialized services, including
Turnaround and Management Advisory, Crisis and Interim
Management, Performance Improvement, Creditor Advisory Services,
Corporate Finance, Dispute Analysis and Forensics, Tax Advisory,
Business Consulting, Real Estate Advisory and Transaction
Advisory.  A network of experienced professionals in locations
across the U.S., Europe, Asia and Latin America, enables the
firm to deliver on its proven reputation for leadership, problem
solving and value creation.


* SEC Historical Society Elects A&M's Barratt to Trustees Board
---------------------------------------------------------------
James W. Barratt, a managing director at global professional
services firm Alvarez & Marsal, has been elected to the board of
trustees of the Securities and Exchange Commission Historical
Society, a non-profit organization founded in 1999 to preserve
and share SEC and securities history.

Mr. Barratt, who is based in Washington, D.C. and has served on
the Society's advisory board since 2003, is a specialist in
advising companies on internal investigations, SEC enforcement
proceedings, accountant malpractice, internal controls and
financial reporting issues.  He recently joined Alvarez &
Marsal, bringing more than 20 years of financial, accounting and
investigative experience, including working with domestic and
international companies ranging from small start-up operations
to large public companies on complex matters.  Prior to pursuing
a consulting career, he served as an accountant in the U.S.
Securities and Exchange Commission Enforcement Division, where
he conducted numerous investigations involving securities law
violations, financial fraud and accountant's liability.

"Jim's strong dedication to public service and extensive
experience in SEC-related matters make him an ideal choice for
this prestigious organization," Sam Pyland, managing director at
Alvarez & Marsal, said.  "We congratulate him on this
appointment and commend him for his exceptional work in this
area."

Independent of and separate from the U.S. Securities and
Exchange Commission, the Society maintains a virtual museum and
archive at http://www.sechistorical.org/which opened in 2002.
The site offers more than 1,600 primary materials on SEC and
securities history, and attracts more than 5,000 visits each
month from the financial community, law and accounting firms,
the SEC, academia, the press and the general public.  The
Society's board of trustees is comprised of distinguished
professionals in the fields of law, finance, consulting and
industry.

                        Alvarez & Marsal

Alvarez & Marsal -- http://www.alvarezandmarsal.com/-- is a
leading global professional services firm with expertise in
guiding underperforming companies and public sector entities
through complex financial, operational and organizational
challenges.  The firm employs a distinctive hands-on approach by
working closely with clients, management and stakeholders to
resolve problems and implement solutions. Founded in 1983,
Alvarez & Marsal draws on its strong operational heritage to
provide specialized services, including: Turnaround and
Management Advisory, Crisis and Interim Management, Performance
Improvement, Creditor Advisory Services, Dispute Analysis and
Forensics, Global Corporate Finance, Tax Advisory, Business
Consulting, Real Estate Advisory and Transaction Advisory.  A
network of experienced professionals in locations across the
U.S., Europe, Asia and Latin America, enables the firm to
deliver on its proven reputation for leadership, problem solving
and value creation.


                         ***********


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.  Marjorie C. Sabijon, Sheryl Joy P. Olano, Stella
Mae Hechanova, and Christian Toledo, Editors.

Copyright 2006.  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 $575 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 $25 each.  For subscription
information, contact Christopher Beard at 240/629-3300.


                * * * End of Transmission * * *