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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

          Friday, July 7, 2006, Vol. 7, Issue 134

                            Headlines

A R G E N T I N A

AUTOMOVILES RIO: Claims Verification Deadline Set for Sept. 11
AVENA SRL: Verification of Claims Deadline Is Sept. 8
AZUL GAS: Deadline for Verification of Claims Is on Aug. 7
BANCO BISEL: Makes ARS5.4 Million Payment to Central Bank
BANCO DE LA PROVINCIA: Makes 29th Payment to Central Bank

BANCO GALICIA: Repays Central Bank with ARS37,687,952
CAIRIN SA: Last Day for Verification of Claims Is Sept. 6
COLORIN INDUSTRIA: Receives ARS30M Purchase Offer from Lafarge
ENIGMATIC SA: Last Day for Verification of Claims Is on Aug. 16
ENTOOLS SA: Trustee Will Verify Proofs of Claim Until Aug. 16

FRIGORIFICO ROMIAN: Claims Verification Deadline Is on Sept. 5
INDUSTRIAS PIP: Individual Reports Due in Court on Aug. 25
PRODUCCIONES SIGLO: Trustee Verifies Claims Until Sept. 27
TELEFONICA DE ARGENTINA: Investing ARS5M in Bahia Blanca Network
TERRAVIAL SRL: Enters Bankruptcy on Court Orders

B A H A M A S

WINN-DIXIE: Wants to Retroactively Reject 77 Store Leases
WINN-DIXIE: Moves to Reject Lifetime Hoan Supply Agreement

B E R M U D A

GLOBAL CROSSING: Picks Ubiquity for Global IP Network Expansion
REFCO INC: Court Says SPhinX Need Not Comply with Subpoenas

B O L I V I A

BISA SEGUROS: Moody's LatAm Puts B3 Global Currency Rating
LA VITALICIA: Moody's LatAm Rates Global Local Currency at B3
SEGUROS ILLIMANI: Moody's LatAm Puts Caa1 Global Currency Rating
SEGUROS PROVIDA: Moody's LatAm Rates Global Currency at Caa1
ZURICH BOLIVIANA: Moody's LatAm Affirms B2 Global Curr. Rating

B R A Z I L

FURNAS I: Moody's LatAm Upgrades Global Currency Rating to Ba1
FURNAS II: Moody's LatAm Raises Global Currency Rating to Ba1
MRS LOGISTICA: Fitch Affirms & Withdraws BB Issuer Ratings
NOVELIS: Extends Consent Requests for Senior Notes to July 12
VARIG S.A.: Preliminary Injunction in Effect Until July 21

* BRAZIL: Will Build US$150 Mil. Transmission Line with Uruguay

C A Y M A N   I S L A N D S

ATHABASCA LIMITED: Claims Filing Deadline Is Set for July 27
CANNONBERRY LTD: Will Hold Final Shareholders Meeting on July 26
CHESHAM INVESTMENTS: Final Shareholders Meeting Is on July 26
DERWENT LIMITED: Creditors Must File Proofs of Claim by July 27
DFK INVESTMENT: Shareholders Final Meeting Is on July 26

DREWCAT CAPITAL: S&P Rates US$50 Million Variable Notes at BB-
ERIE LIMITED: Last Day to File Proofs of Claim Is on July 27
NEW STRATUS: Final Shareholders Meeting Is Set for July 27
ONTARIO LIMITED: Proofs of Claim Filing Is Until July 27
PARKLAND INVESTMENTS: Last Shareholders Meeting Is on July 26

PRIMUS JAPAN: Final Shareholders Meeting Is Set for July 27

C H I L E

AES CORP: Acquires Majority Ownership of Wind Energy Ltd.

C O L O M B I A

ECOPETROL: Presents Bid for Niscota Oil Field

C O S T A   R I C A

CENTRAL AMERICAN: Paritz Replaces Killman Murrell as Auditor

* COSTA RICA: Technicians Seek to Lower Internet Rates by 50%

C U B A

* CUBA: Tourist Air Transportation Increases 7% in 2006

D O M I N I C A N   R E P U B L I C

FALCONBRIDGE: Industry Canada Delays Xstrata Investment Review

E L   S A L V A D O R

MILLICOM INT'L: Number of Subscribers Increase by 1.4 Million
MILLICOM INTERNATIONAL: Two Firms Expected to Retry on Buy Bids

G U A T E M A L A

* GUATEMALA: Farmers Occupy Six State Farms in Protest of FTA
* GUATEMALA: Korea Electric May Invest in Power Sector

H A I T I

* HAITI: Regains Membership in Caricom

J A M A I C A

AIR JAMAICA: Expected to Participate in Trade Exposition
BANK JAMAICA: Unit Will Make Public Offer of Preference Shares

M E X I C O

COTT CORP: Brent Willis Signs Employment Agreement as CEO
EMPRESAS ICA: Inks Four Construction Contracts for MXN665.2MM
GREENBRIER COMPANIES: Earns US$10.7 Million in Third Quarter
HERBALIFE INTERNATIONAL: To Undertake Potential Refinancing
HOME PRODUCTS: Moody's Lowers Corporate Family Rating to Caa1

INTERNATIONAL WIRE: Closes Sale of Insulated Wire Businesses
MERIDIAN AUTOMOTIVE: Court Approves Hilco Appraisal's Retention
NORTEL NETWORKS: Unit Closes Offering of US$2-Bil. Senior Notes

P A N A M A

CHIQUITA BRANDS: No Agreement on Banana Sales Reached with Gov't

* PANAMA: IDB Loans US$5 Million to Improve Investment Climate

P A R A G U A Y

* PARAGUAY: Hopes to Stimulate Exports of Fresh Produce

P E R U

TELEFONICA DEL PERU: Deploys Lima-Huancayo Fiber Optic Network


P U E R T O   R I C O

UNIVISION COMMS: Televisa Won't Participate in Umbrella Merger

T R I N I D A D   &   T O B A G O

BWIA WEST: Employs Catalise UK as Restructuring Advisor
BWIA WEST: Union Says Retrenchment May Affect Safety Record

U R U G U A Y

* URUGUAY: Will Build US$150 Mil. Transmission Line with Brazil

V E N E Z U E L A

BANCO NACION: Opens Representative Office in Caracas
CERRO NEGRO: Fitch's B+ Downgrade Shows Policy Shifts in Country
CITGO PETROLEUM: Lake Charles Plant Back to Planned Output Rates
PETROLERA HAMACA: Fitch Downgrades Senior Debt Rating to B+
PETROZUATA: Fitch's Downgrade Reflects Policy Shifts in Country

SINCRUDOS DE ORIENTE: Fitch Lowers Senior Debt's Rating to B+


                          - - - - -  


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


AUTOMOVILES RIO: Claims Verification Deadline Set for Sept. 11
--------------------------------------------------------------
Elba Nelida Staniscia, the court-appointed trustee for
Automoviles Rio Lujan S.A.'s bankruptcy case, will verify
creditors' proof of claim until Sept. 11, 2006.

Creditors who fail to present their proofs of claim won't
receive any post-liquidation distribution.

The verified claims will be presented in court as individual
reports on Oct. 24, 2006.  A general report that contains an
audit of Automoviles Rio's accounting and banking records will
follow on Dec. 5, 2006.

The debtor can be reached at:

    Automoviles Rio Lujan S.A.
    Pena 2731
    Buenos Aires, Argentina

The trustee can be reached at:

    Elba Nelida Staniscia
    Avenida Rivadavia 3320
    Buenos Aires, Argentina


AVENA SRL: Verification of Claims Deadline Is Sept. 8
-----------------------------------------------------
Jose Eduardo Preve, the court-appointed trustee for Avena
S.R.L.'s bankruptcy case, will verify creditors' proofs of claim
until Sept. 8, 2006.

La Nacion relates that Court No. 5 in Buenos Aires declared
Avena bankrupt at the request of Juan A. Genoy, whom it owes
US$15,000.

Clerk No. 10 assists the court in this case.

The debtor can be reached at:

    Avena S.R.L.    
    Scalabrini Ortiz 3154
    Buenos Aires, Argentina

The trustee can be reached at:

    Jose Eduardo Preve
    Pte. Roque Saenz Pena 694
    Buenos Aires, Argentina   


AZUL GAS: Deadline for Verification of Claims Is on Aug. 7
----------------------------------------------------------
Court-appointed trustee Maria Isabel Braun will verify
creditors' proofs of claim against bankrupt company Azul Gas
S.A.C.I.A. until Aug. 7, 2006.

Creditors who fail to present their proofs of claims won't
receive any post-liquidation distribution.

Ms. Braun will submit in court individual reports and a general
report that contains an audit of Azul Gas' accounting and
banking records after the claims are verified.  The report
submission dates were not disclosed.

The debtor can be reached at:

    Azul Gas S.A.C.I.A.
    Pte. Peron 569, Azul
    Buenos Aires, Argentina

The trustee can be reached at:

    Maria Isabel Braun
    Uriburu 1017, Azul
    Buenos Aires, Argentina


BANCO BISEL: Makes ARS5.4 Million Payment to Central Bank
---------------------------------------------------------
Nuevo Banco Bisel, along with Banco de la Provincia de Buenos
Aires aka Bapro and Banco Galicia, paid an aggregate ARS126.6
million to the Banco Central de la Republica Argentina,
according to Infobae.

Of the total payment:

   -- ARS37,687,952 pesos came from Banco Galicia,
   -- ARS83,540,540 pesos came from Banco de la Provincia, and
   -- ARS5,369,736 pesos came from Nuevo Banco.

The payment was the 29th installment in the repayment plan the
central bank drafted in 2003 that allowed banks to pay off debts
with payments they received from maturing long-term government
papers, which they in turn received in compensation for the
pesofication and exchange rate-related losses.

After these payments, the total debt of the three entities will
be reduced to ARS5.85 million.

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 12, 2005,
Moody's Latin America Calificadora de Riesgo S.A. maintained its
'D' rating on various corporate bonds issued by local bank,
Banco Bisel S.A.

The National Securities Commission, the CNV, revealed that the
rating, which denotes the issuer has  defaulted on payments,
affected the following bonds:

  -- US$54 million worth of "Obligaciones Negociables
     Subordinadas" classified under "Series and/or Class." The
     bonds matured on July 20, 2000.

  -- US$100 million worth of "Programa Global de Obligaciones
     Negociables" classified under "Program." These bonds also
     matured on July 20, 2000.

  -- US$300 million worth of "Programa de Emision de Titulos de
     Deuda a Mediano Plazo" classified under "Program." These
     bonds matured on July 20, 2000.

  -- US$200 million worth of "Programa Global de Emision de
     Obligaciones" classified under "Program." The maturity date
     of the bonds was not indicated.


BANCO DE LA PROVINCIA: Makes 29th Payment to Central Bank
---------------------------------------------------------
Banco de la Provincia de Buenos Aires, along with Nuevo Banco
Bisel and Banco de Galicia SA, paid an aggregate ARS126.6
million to the Banco Central de la Republica Argentina,
according to Infobae.

Of the total payment:

   -- ARS37,687,952 pesos came from Banco Galicia,
   -- ARS83,540,540 pesos came from Banco de la Provincia, and
   -- ARS5,369,736 pesos came from Nuevo Banco.

The payment was the 29th installment in the repayment plan the
central bank drafted in 2003 that allowed banks to pay off debts
with payments they received from maturing long-term government
papers, which they in turn received in compensation for the
pesofication and exchange rate-related losses.

After these payments, the total debt of the three entities will
be reduced to ARS5.85 million.

                        *    *    *

On June 1, 2006, Moody's Investors Service upgraded the bank
financial strength ratings of several Argentinean banks to
reflect:

   -- the banks' improving financial fundamentals,
   -- the relative improvement in the operating environment, and
   -- the recovery of the banking system since the financial
      crisis of 2001-2002.

Moody's changed the outlooks on the E bank financial strength
rating of Banco de la Provincia de Buenos Aires to positive from
stable.  The rating agency also takes into consideration the
effort of the bank to improve its balance sheet quality and
earnings.  The low rating is however, an indication of the
challenges that the bank still faced to reduce its large
exposures to the public sector, as well as the disadvantages of
its poor private-sector asset quality, weak core earnings, and
solvency.


BANCO GALICIA: Repays Central Bank with ARS37,687,952
-----------------------------------------------------
Banco Galicia, along with Banco de la Provincia de Buenos Aires
aka Bapro and Nuevo Banco Bisel, paid an aggregate ARS126.6
million to the Banco Central de la Republica Argentina,
according to Infobae.

Of the total payment:

   -- ARS37,687,952 pesos came from Banco Galicia,
   -- ARS83,540,540 pesos came from Banco de la Provincia, and
   -- ARS5,369,736 pesos came from Nuevo Banco.

The payment was the 29th installment in the repayment plan the
central bank drafted in 2003 that allowed banks to pay off debts
with payments they received from maturing long-term government
papers, which they in turn received in compensation for the
pesofication and exchange rate-related losses.

After these payments, the total debt of the three entities will
be reduced to ARS5,850 million.

                       *    *    *

As reported on Apr. 12, 2006, the Argentine arm of Standard &
Poor's assigned these ratings to Banco de Galicia y Buenos
Aires' debts:

   -- Obligaciones negociables, serie 6, emitted on July 19,
      2002 for US$73,000,000, emitted under the program for
      US$1000 million

      * Last due: Aug. 3, 2007
      * Rate: raA

   -- Obligaciones Negociables, clase 7 for US$43,000,000,
      included under the US$1000 million program

      * Last due: Aug. 3, 2007
      * Rate: raA

   -- Program of obligaciones negociables, media term, for
      US$2,000,000,000

      * Rate: raA

   -- Obligaciones Negociables simples 8-11-93, for
      US$21,400,000

      * Last due: Nov. 1, 2004
      * Rate: raD

   -- Obligaciones negociables simples for US$21,400,000

      * Last due: Nov. 1, 2004
      * Rate: raD

   -- Obligaciones Negociables emitted for US$9,000,000,
      included under the US$1000 million program.

      * Last due: Dec. 20, 2005
      * Rate: raD


CAIRIN SA: Last Day for Verification of Claims Is Sept. 6  
---------------------------------------------------------
Hector Pedro Bazzini, the court-appointed trustee for Cairin
S.A.'s bankruptcy case, will verify creditors' proof of claim
until Sept. 6, 2006.

Creditors who fail to present their proofs of claim won't
receive any post-liquidation distribution.

Mr. Bazzini will present individual reports and a general report
that contains an audit of Cairin's accounting and banking
records after the claims are verified.  The report submission
dates were not disclosed.

The trustee can be reached at:

    Hector Pedro Bazzini
    Uruguay 662
    Buenos Aires, Argentina


COLORIN INDUSTRIA: Receives ARS30M Purchase Offer from Lafarge
--------------------------------------------------------------
French group Lafarge Peinture Color System has offered to buy
87.86% of the shares of Colorin Industria de Materiales
Sinteticos S.A. for ARS30 million, Nosis reports.

Included in Lafarge purchase offer is the assumption of the
Obligaciones Negociables Tramo I and II issued by Colorin.

Other salient terms of the deal were not disclosed.

Colorin Industria de Materiales Sinteticos S.A. produces
industrial and automotive paint in Argentina, and markets its
products to the countries of Mercosur.  The Company is a member
of Grupo Bisa.

As reported on Oct. 10, 2005, Moody's Latin America Calificadora
de Riesgo S.A. maintained its 'D' rating on the US$47 million
bond issued by Colorin Industria de Materiales Sintet.


ENIGMATIC SA: Last Day for Verification of Claims Is on Aug. 16
---------------------------------------------------------------
Court-appointed Angel Vello Vazquez wiil verify creditors' proof
of claim against Enigmatica S.A. until Aug. 16, 2006.

Creditors who fail to present their proofs of claim won't
receive any post-liquidation distribution.

Ms. Vazquez will present in court individual reports based on
the verified claims on Sept. 27, 2006.  A general report that
contains an audit of Enigmatic's accounting and banking records
will follow on Nov. 8, 2006.

The trustee can be reached at:

    Angel Vello Vazquez
    Arana 275
    Buenos Aires, Argentina


ENTOOLS SA: Trustee Will Verify Proofs of Claim Until Aug. 16
-------------------------------------------------------------
Court-appointed trustee Angel Vello Vazquez will verify
creditors' proofs of claim against bankrupt company Entools S.A.
until Aug. 16, 2006.  

The verified claims will be presented in court as individual
reports on Sept. 27, 2006.  A general report that contains an
audit of Entool's accounting and banking records will follow on
Nov. 8, 2006.

Entool's creditors did not accept the settlement plan that the
company presented during the informative assembly on
Apr. 14, 2006, under its reorganization proceeding.  
Consequently, Court No. 17 in Buenos Aires ordered that Entool's
insolvency case must be converted to a bankruptcy proceeding.  

Under bankruptcy protection, all of the debtor's assets will be
liquidated and proceeds distributed to creditors.

Clerk No. 34 assists the court in this case.

The debtor can be reached at:

    Entools S.A.
    Uruguay 880
    Buenos Aires, Argentina

The trustee can be reached at:

    Angel Vello Vazquez
    Sarmiento 1586
    Buenos Aires, Argentina


FRIGORIFICO ROMIAN: Claims Verification Deadline Is on Sept. 5
--------------------------------------------------------------
Maria Paulina Alva, the court-appointed trustee for Frigorifico
Romian S.R.L.'s bankruptcy case, will verify creditors' proofs
of claim until Sept. 5, 2006.

Creditors who fail to present their proofs of claims won't
receive any post-liquidation distribution.

Ms. Alva will submit in court individual reports based on the
verified claims on Oct. 18, 2006.  A general report that
contains an audit of Frigorifico Romian's accounting and banking
records will follow on Nov. 29, 2006.

The trustee can be reached at:

    Maria Paulina Alva
    Montevideo 536
    Buenos Aires, Argentina


INDUSTRIAS PIP: Individual Reports Due in Court on Aug. 25
----------------------------------------------------------
Osvaldo Luis Depiante, the court-appointed trustee for
Industrias Pip S.R.L.'s bankruptcy case, will present individual
reports based on the verified claims on Aug. 25, 2006.  A
general report that contains an audit of the company's
accounting and banking records will follow on Oct. 6, 2006.  

Mr. Depiante verified creditors' proofs of claim until
June 28, 2006.

As reported in the Troubled Company Reporter-Latin America on
June 16, 2006, Court No. 5 in Rosario, Santa Fe, converted
Industrias Pip's insolvency case to a bankruptcy proceeding.

The debtor can be reached at:

    Industrias Pip S.R.L.
    Ruta Nacional Niro 7km 661, Justo Daract
    San Luis, Argentina

The trustee can be reached at:

    Osvaldo Luis Depiante
    Corrientes 751, Rosario
    Santa Fe, Argentina


PRODUCCIONES SIGLO: Trustee Verifies Claims Until Sept. 27
----------------------------------------------------------
Mariela Adriana Bellani, the court-appointed trustee for
Producciones Siglo XXI S.R.L.'s bankruptcy proceeding, will
verify creditors' proofs of claim until Sept. 27, 2006.

La Nacion relates that Court No. 6 in Buenos Aires declared
Producciones Siglo bankrupt at the request of Maria Teresa
Menacho Melendez, whom it owes US$106,755.94.

Clerk No. 11 assists the court in this case.

The debtor can be reached at:

    Producciones Siglo XXI S.R.L.    
    Esmeralda 582
    Buenos Aires, Argentina

The trustee can be reached at:

    Mariela Adriana Bellani
    Marcelo T. de Alvear 1364
    Buenos Aires, Argentina   


TELEFONICA DE ARGENTINA: Investing ARS5M in Bahia Blanca Network
----------------------------------------------------------------
Telefonica de Argentina said in a statement that it will invest
ARS5 million for the expansion of its Asymmetric Digital
Subscriber Line or ADSL and voice network in Bahia Blanca,
Buenos Aires.

ADSL is a technology that allows the user to take advantage of
the unused bandwidth or the amount of data that can be
transmitted over a given time period.  Bandwidth already exists
on the phone line.  

The resources are part of Telefonica's US$32-million investment
plan for the Buenos Aires province, announced earlier this
month, which will focus on remodeling and expanding switching
centers as well as installing new cabling and internet access
centers.

"Telefonica has become the leader in the broadband segment.
Between December 2000 and March 2006, the number of Internet
access centers increased tenfold to 360,000," Telefonica general
manager Juan Waehner said.

In Bahia Blanca, TAR currently has 88,400 fixed-line customers,
and 7,640 broadband Internet connections.

The telecom company expects to end 2008 with 1 million broadband
connections.

Headquartered in Buenos Aires, Argentina, Telefonica de
Argentina S.A. -- http://www.telefonica.com.ar/-- provides   
telecommunication services which include telephony business both
in Spain and Latin America, mobile communications businesses,
directories and guides businesses, Internet, data and corporate
services, audiovisual production and broadcasting, broadband and
Business-to-Business e-commerce activities.

                        *    *    *

As reported in the Troubled Company Reporter on April 27, 2006,
Fitch Ratings made these changes to Telefonica de Argentina
S.A.:

   Local Currency

     -- Previous Rating: 'B'
     -- New RR: 'BB-', Rating Outlook Stable

   US$771 million, Senior Unsecured Notes due 2006, 2007, 2008,
   2010 and 2011

     -- Previous Rating: 'B'
     -- New IDR: 'B+/RR3'

                        *    *    *

As reported in the Troubled Company Reporter on May 12, 2006,
Standard & Poor's Ratings Services said that its ratings on
Telefonica de Argentina S.A. or TASA (B/Stable/--) would not be
affected by the recent announcement of the approval to acquire
Telefonica Data Argentina S.A., a company that provides
telecommunication and IT solutions to the corporate sector in
Argentina.

                        *    *    *

As reported in the Troubled Company Reporter on May 29, 2006,
Moody's Investors Service placed these ratings on Telefonica de
Argentina, S.A.:

   -- Corporate Family Rating (foreign currency): to B2 from
      B3 with stable outlook;

   -- Foreign currency issuer rating: to B2 from B3 with
      stable outlook; and

   -- Senior Unsecured Rating (foreign currency): to B2 from
      B3 with stable outlook.


TERRAVIAL SRL: Enters Bankruptcy on Court Orders
------------------------------------------------
Terravial S.R.L. enters bankruptcy protection after a court in
Santa Fe ordered the company's liquidation.  Consequently,
control of the company's assets will be transferred to a court-
appointed trustee who will supervise the liquidation
proceedings.

Argentine bankruptcy law requires the trustee to provide the
court with individual reports on the forwarded claims and a
general report containing an audit of the Company's accounting
and business records.  The report submission dates were not
disclosed.

The debtor can be reached at:

    Terravial S.R.L.
    Suipacha 870, Rosario
    Santa Fe, Argentina
  



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


WINN-DIXIE: Wants to Retroactively Reject 77 Store Leases
---------------------------------------------------------
Pursuant to Section 365(a) of the Bankruptcy Code, Winn-Dixie
Stores, Inc., and its debtor-affiliates ask the U.S. Bankruptcy
Court for the Middle District of Florida to approve their
rejection of 77 grocery store leases effective as of
Feb. 21, 2005.

Out of the grocery store leases to be rejected, 31 are located
in Texas; nine each in Kentucky, Ohio, and Virginia; seven in
Mississippi; six in North Carolina; three in Oklahoma; two in
Georgia; and one in Alabama.

A list of the grocery store leases to be rejected is available
for free at http://ResearchArchives.com/t/s?d0f

Prior to the Debtors' bankruptcy filing, each Lease was assigned
to a third party.

D. J. Baker, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP,
in New York, tells the Court that the assignment documents may
not have released a specific Debtor-tenant from its obligations
under the Assigned Lease and the named tenant remains liable to
the Landlord in the event of a default by an Assignee.

No Landlord currently has any liquidated claim against the
Debtors for amounts owed under each of the Assigned Leases,
Mr. Baker says.

The Assigned Leases are deemed unnecessary to the Debtors'
ongoing operations and rejecting them would benefit the Debtors'
estates and creditors, Mr. Baker attests.

Headquartered in Jacksonville, Florida, Winn-Dixie Stores, Inc.
-- http://www.winn-dixie.com/-- is one of the nation's largest
food retailers.  The Company operates stores across the
Southeastern United States and in the Bahamas and employs
approximately 90,000 people.  The Company, along with 23 of its
U.S. subsidiaries, filed for chapter 11 protection on Feb. 21,
2005 (Bankr. S.D.N.Y. Case No. 05-11063, transferred Apr. 14,
2005, to Bankr. M.D. Fla. Case Nos. 05-03817 through 05-03840).
D.J. Baker, Esq., at Skadden Arps Slate Meagher & Flom LLP, and
Sarah Robinson Borders, Esq., and Brian C. Walsh, Esq., at King
& Spalding LLP, represent the Debtors in their restructuring
efforts.  Paul P. Huffard at The Blackstone Group, LP, gives
financial advisory services to the Debtors.  Dennis F. Dunne,
Esq., at Milbank, Tweed, Hadley & McCloy, LLP, and John B.
Macdonald, Esq., at Akerman Senterfitt give legal advice to the
Official Committee of Unsecured Creditors.  Houlihan Lokey &
Zukin Capital gives financial advisory services to the
Committee.  When the Debtors filed for protection from their
creditors, they listed US$2,235,557,000 in total assets and
US$1,870,785,000 in total debts.  (Winn-Dixie Bankruptcy News,
Issue No. 42; Bankruptcy Creditors' Service, Inc., 215/945-
7000).


WINN-DIXIE: Moves to Reject Lifetime Hoan Supply Agreement
----------------------------------------------------------
Winn-Dixie Stores, Inc., and its debtor-affiliates seek consent
from the U.S. Bankruptcy Court for the Middle District of
Florida to reject their prepetition supply agreement with
Lifetime Hoan, effective as of July 14, 2006.

Pursuant their supply agreement dated Aug. 2, 2003, Winn-Dixie
Stores, Inc., is obligated to purchase kitchen tools and gadgets
from Lifetime Hoan until the net volume purchased reaches
US$15,000,000, with the term of the agreement continuing until
the volume requirement is satisfied.

According to Cynthia C. Jackson, Esq., at Smith Hulsey & Busey,
in Jacksonville, Florida, the Debtors' reduced store count has
operated to extend the term of the Prepetition Supply Agreement.
Although the Debtors desire to continue their relationship with
Lifetime Hoan, the terms of their contract are no longer
feasible, Ms. Jackson tells the Court.

The Debtors have determined that it is in their best interests
to reject the Prepetition Supply Agreement and continue their
relationship with Lifetime Hoan on more favorable terms under a
new ordinary course supply agreement.

The new supply agreement is set to take effect upon rejection of
the Prepetition Supply Agreement.

Lifetime Hoan has agreed that the Debtors may terminate the new
supply agreement without liability if their reorganization plan
is not confirmed or does not become effective.

Ms. Jackson says that by rejecting the Prepetition Supply
Agreement in favor of a new contract with Lifetime Hoan, the
Debtors will:

    (a) avoid the burdensome obligation of the US$15,000,000
        volume requirement as well as the risk of significant
        rejection damages claim if that requirement is not
        satisfied; and

    (b) be able to continue offering Lifetime Hoan's products to
        their customers on terms that better reflect the current
        and future needs of their operating stores.

                      Claims Resolution

Winn-Dixie Procurement, Inc., scheduled a claim in favor of
Lifetime Hoan for US$91,247.  Lifetime Hoan filed Claim No. 6177
against Winn-Dixie Stores for US$135,650.

Ms. Jackson tells the Court that the parties have agreed to set
off their claims against each other, specifically:

    (a) the Scheduled Claim will be disallowed and expunged in
        its entirety; and

    (b) Claim No. 6177 will be set off against the Debtors'
        accrued prepetition credits for US$44,403, resulting in
        an allowed general unsecured claim for US$91,247.

In addition, Lifetime Hoan will waive any claim for rejection
damages and all other claims against the Debtors, except for the
agreed general unsecured claim and any unpaid postpetition
invoices.

Headquartered in Jacksonville, Florida, Winn-Dixie Stores, Inc.
-- http://www.winn-dixie.com/-- is one of the nation's largest
food retailers.  The Company operates stores across the
Southeastern United States and in the Bahamas and employs
approximately 90,000 people.  The Company, along with 23 of its
U.S. subsidiaries, filed for chapter 11 protection on Feb. 21,
2005 (Bankr. S.D.N.Y. Case No. 05-11063, transferred Apr. 14,
2005, to Bankr. M.D. Fla. Case Nos. 05-03817 through 05-03840).
D.J. Baker, Esq., at Skadden Arps Slate Meagher & Flom LLP, and
Sarah Robinson Borders, Esq., and Brian C. Walsh, Esq., at King
& Spalding LLP, represent the Debtors in their restructuring
efforts.  Paul P. Huffard at The Blackstone Group, LP, gives
financial advisory services to the Debtors.  Dennis F. Dunne,
Esq., at Milbank, Tweed, Hadley & McCloy, LLP, and John B.
Macdonald, Esq., at Akerman Senterfitt give legal advice to the
Official Committee of Unsecured Creditors.  Houlihan Lokey &
Zukin Capital gives financial advisory services to the
Committee.  When the Debtors filed for protection from their
creditors, they listed US$2,235,557,000 in total assets and
US$1,870,785,000 in total debts.  (Winn-Dixie Bankruptcy News,
Issue No. 42; Bankruptcy Creditors' Service, Inc., 215/945-
7000).




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


GLOBAL CROSSING: Picks Ubiquity for Global IP Network Expansion
---------------------------------------------------------------
Global Crossing Ltd. signed a multimillion-dollar agreement that
calls for Ubiquity Software to supply Session Initiation
Protocol or SIP Application Server technology in the company's
global, IP network.

Under the agreement, Global Crossing will use Ubiquity's SIP
Application Server and Service Oriented Architecture service
creation environment to develop, deploy and manage a new
generation of IP-based services, and to migrate existing legacy
applications to Global Crossing's global IP platform.  Global
Crossing currently plans to deploy several applications
including VoIP Interactive Voice Response and VoIP Network
Transfer.

In connection with the agreement, INUK Networks, a partner of
Ubiquity, entered into a separate agreement to purchase Voice
over Internet Protocol services from Global Crossing
Telecommunications Limited.  The services will be part of a
triple-play offering to be launched by INUK Networks later this
year, providing university students broadband Internet access,
IPTV and VoIP.

As a worldwide provider of IP voice, video and data services to
more than 600 cities in 60 countries and six continents, Global
Crossing is responding aggressively to the demand for new and
innovative IP-based applications and services.  Global Crossing
selected Ubiquity's SIP A/S for its rapid service-creation
capabilities and advanced SOOF-based SOA, operational cost
savings potential, and the ability to address new customers with
new and innovative services that extend its market leadership as
an IP carrier.

"The Ubiquity SIP Application Server platform strengthens our IP
architecture and supports our strategy to rapidly offer new and
innovative IP services to enterprise and carrier customers
worldwide," said Dan Enright, EVP Operations, Global Crossing.

"By selecting Ubiquity as a strategic supplier, Global Crossing
continues its leadership as an innovative IP-based service
provider," said Ian McLaren, CEO at Ubiquity Software.  "Global
Crossing's use of Ubiquity's SIP A/S will accelerate their
implementation of next-generation IP networks.  This allows
Global Crossing to build applications that support the
introduction of innovative new services, quickly and seamlessly,
while bringing competitive advantage to their customers."

              Ubiquity's SIP Application Server

Ubiquity's SIP A/S is an "open," standards-based service
creation platform that has been selected by carriers to enable
the rapid development and deployment of a broad range of
advanced communications services.  SIP A/S is a high-performance
software platform designed specifically for telecommunications
applications to allow carriers to offer innovative voice, data,
and video services.  The SIP A/S offers a programmable,
horizontal platform that makes it easy to add new features and
applications to carrier networks.

             Ubiquity's SOA and Developer Tools

The launch of the Ubiquity Developer Network builds on
Ubiquity's developer strategy, following the recent announcement
of Ubiquity's Service Oriented Object Framework Appcelerator
Service Oriented Architecture, developer tools for Ubiquity's
"open" SIP A/S platform. Appcelerator provides a unique SOA
development environment on top of the Ubiquity JSR116-compliant
SIP Servlet Container for unparalleled system performance and
efficiency.  Additionally, Ubiquity Developer Studio, in
conjunction with the Appcelerator product set, provides a
unified set of tools that enable highly modular application and
services development.  Ubiquity Developer Edition (UDE) provides
developers with a development version of Ubiquity's award-
winning SIP A/S to simplify development, testing and debugging
of applications built on the Ubiquity SIP A/S.

                  About Ubiquity Software

Headquartered in Cardiff, Wales, Ubiquity Software Founded
-- http://www.ubiquitysoftware.com/--  offers deployment  
platforms, applications, development tools and integration
technology for converged voice, video and data services.
Ubiquity's SIP Application Server is the preferred services
deployment platform standard for the world's leading
telecommunications carriers.  Through the Ubiquity Developer
Network, Ubiquity partners with leading network equipment
vendors, system integrators, ISVs, and developers to bring new
multimedia communications solutions to a rapidly changing global
market.

                   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.


REFCO INC: Court Says SPhinX Need Not Comply with Subpoenas
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
denied the request of Merrill Lynch International, SPhinX Access
LLC, SPhinX Access Ltd., Raymond James & Associates, Raymond
James Financial Services, Rydex Capital Partners LLC and Rydex
Capital Partners SPhinX Fund to compel SPhinX Managed Futures
Funds SPC's compliance with subpoenas and deposition notices, on
the grounds that:

   (i) The Subpoenas seeking discovery from SPhinX and its
       board of directors and outside counsel call for
       information irrelevant to the issues on the approval of
       the proposed settlement of an Adversary Proceeding
       between SPhinX and the Official Committee of Unsecured
       Creditors.

  (ii) Compliance with the Subpoenas would be unduly burdensome.

(iii) The Investors lack standing to object to the SPhinX
       Settlement Motion.

                     Investors Request

The Investors had sought information related to an agreement
between SPhinX and the Official Committee of Unsecured Creditors
appointed in Refco Inc., and its debtor-affiliates' cases, to
settle a preferential action the Committee filed against SPhinX.

Pursuant to the settlement, SPhinX agreed to return
US$263,000,000 of the US$312,046,266 it received from Refco
Capital Markets, Ltd., days before the bankruptcy filing, and
waive and release certain claims against the Debtors.

The Investors objected to the settlement, arguing that it was
not fair and equitable, and is not in the public interest.  The
Investors said they stand to lose millions of dollars as a
result of the settlement.

The Investors served a series of discovery requests on persons
and entities with knowledge of the facts pertinent to the
settlement agreement to ascertain the facts that played into
SPhinX's capitulation, and to test the settling parties'
assertions of fairness, equity, lack of collusion and adequate
representation.

The Investors, however, have been stonewalled in their effort.

SPhinX, RAI and Mr. Butt have asked the Court to quash the
Investors' subpoenas because the Investors have no right to be
heard in connection with the proposed settlement, and hence no
right to information about it.  RAI said the Investors are not
creditors or equity holders of the Debtors and, therefore, do
not have standing.

SPhinX has refused to produce its two directors -- the
individuals who approved the settlement on SPhinX's behalf -- in
response to deposition notices.

PlusFunds served the Investors with a one-sentence "objection"
the day before the subpoena's return date and refused to produce
a witness.

Marc T.G. Dworsky, Esq., at Munger, Tolles & Olson LLP, in Los
Angeles, California, asserts that the Investors have a right to
be heard under the "party in interest" provisions in Section
1109(b) of the Bankruptcy Code.  The Investors are the ones
paying the price of the proposed settlement.  Being an
investment vehicle, SPhinX is not parting with a cent of its own
money to fund the settlement.

Mr. Dworsky also tells the Court that, although SPhinX is duty-
bound to represent the Investors' interests, it instead seeks to
sacrifice those interests in the service of the "utterly
illegitimate interests" of the SPhinX board of directors and
their allies at Refco.

After repeatedly reassuring the Investors that it would
vigorously protect their interests in the preference action, Mr.
Dworsky relates that SPhinX unceremoniously ditched all of its
pleaded defenses on the eve of a summary judgment hearing in the
preference action.  Instead of simply conceding defeat in that
action, SPhinX also abandoned its claim under Section 502(h) of
the Bankruptcy Code for about half its value.

The Investors have learned that while SPhinX was run entirely by
PlusFunds, over the course of the preference action, Refco came
to own PlusFunds as a result of Christopher Sugrue's defaulting
on over US$200,000,000 of never disclosed loans to him by Refco
that were secured by all of PlusFunds' stock.  Mr. Sugrue is a
director at SPhinX and chairman and co-founder of PlusFunds.

These developments naturally raised many very red flags, Mr.
Dworsky states.

Various Merrill Lynch entities including (i) SPhinX Access LLC
and SPhinX Access Ltd., two feeder funds sponsored by Merrill
Lynch Alternative Investments LLC, which, through their
investments in SPhinX On-Shore Investment Fund LLC and SPhinX
Ltd., respectively, have approximately US$17,000,000 in exposure
to SPhinX; and (ii) Merrill Lynch International has
approximately US$8,000,000 in exposure to SPhinX, through direct
investments in SPhinX Ltd.

Customers of Raymond James, through their investments in the
SPhinX Investment Fund, LP, SPhinX, Ltd., and the S&P Managed
Futures Index Fund, LP, have almost US$16,000,000 in exposure to
SPhinX.

The Rydex entities, through their investments, have between
US$18,000,000 to US$22,000,000 in exposure to SPhinX.

Masonic Hall & Asylum Fund supports Merrill Lynch, et al.'s
request.

                  SphinX & RAI Objections

(1) SPhinX

On behalf of SPhinX Managed Futures Fund SPC, David A. Crichlow,
Esq., at Pillsbury Winthrop Shaw Pittman LLP, in New York, tells
the Court that the Investors are trying to pursue a sweeping
fishing expedition to explore each of their theories about how
SPhinX supposedly acted in bad faith in connection with the
settlement.

Mr. Crichlow notes that the Creditors Committee has voluntarily
provided the Investors with all discovery taken in the
preference action, and the Investors already have access to the
court papers on the docket.  He contends that access to the full
litigation record is sufficient for the Investors to evaluate
the proposed settlement -- to the extent they have any standing
to even do so.

The Investors may be displeased with the terms of the
settlement, but their displeasure flows from the perceived
injury to their indirect equity interests in SPhinX flowing
therefrom, according to Mr. Crichlow.  The Investors are not
being forced to "fund" the settlement; rather, they made the
decision long ago to "fund" SPhinX, Mr. Crichlow says.

(2) RAI

Refco Alternative Investments, LLC, and its president, Richard
Butt, insist that the subpoenas should be quashed because the
SPhinX Investors do not have standing.  

Eric M. Davis, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, in Wilmington, Delaware, points out that any breach of
fiduciary duty that the Investors may wish to have addressed is
a breach of fiduciary duty by SPhinX, not the Debtors.  Any
remedies for that breach should be sought from SPhinX, not from
the Debtors, and not in the Bankruptcy Court.

                      About Refco Inc.

Based in New York, Refco Inc. -- http://www.refco.com/-- is a    
diversified financial services organization with operations in
14 countries and an extensive global institutional and retail
client base.  Refco's worldwide subsidiaries are members of
principal U.S. and international exchanges, and are among the
most active members of futures exchanges in Chicago, New York,
London and Singapore.  In addition to its futures brokerage
activities, Refco is a major broker of cash market products,
including foreign exchange, foreign exchange options, government
securities, domestic and international equities, emerging market
debt, and OTC financial and commodity products.  Refco is one of
the largest global clearing firms for derivatives.

The Company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts.  Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors.  Refco
reported US$16.5 billion in assets and US$16.8 billion in debts
to the Bankruptcy Court on the first day of its chapter 11
cases.

Refco LLC, an affiliate, filed for chapter 7 protection on
Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134).  Refco, LLC,
is a regulated commodity futures company that has businesses in
the United States, London, Asia and Canada.  Refco, LLC, filed
for bankruptcy protection in order to consummate the sale of
substantially all of its assets to Man Financial Inc., a wholly
owned subsidiary of Man Group plc.  Albert Togut, the chapter 7
trustee, is represented by Togut, Segal & Segal LLP.

On April 13, 2006, the Court appointed Marc S. Kirschner as
Refco Capital Markets Ltd.'s chapter 11 trustee.  Mr. Kirschner
is represented by Bingham McCutchen LLP.  RCM is Refco's
operating subsidiary based in Bermuda.

Three more affiliates of Refco, Westminster-Refco Management
LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC,
filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y.
Case Nos. 06-11260 through 06-11262).  (Refco Bankruptcy News,
Issue No. 33; Bankruptcy Creditors' Service, Inc., 215/945-
7000).




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B O L I V I A
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BISA SEGUROS: Moody's LatAm Puts B3 Global Currency Rating
----------------------------------------------------------
Moody's Latin America has assigned insurance financial strength
ratings to BISA Seguros y Reaseguros S.A. of Aa3.bo on Bolivia's
national rating scale and B3 on the global local-currency rating
scale.  Both ratings have a stable outlook.

BISA Seguros is a property and casualty insurance company and
part of the important Bolivian financial conglomerate, BISA
Group, which includes:

   -- BISA Seguros,
   -- La Vitalicia,
   -- Banco BISA,
   -- BISA Leasing,
   -- BISA Agente de Bolsa, and
   -- BISA Administradora de Fondos de Inversion.

According to Moody's, BISA Seguros' ratings reflect its strong
market position, good profitability, and integration with and
support from the BISA Group.  BISA Seguros is the leading
property and casualty insurance company in Bolivia with a 35%
market share as of December 31, 2005.  The company is well
diversified among both personal and commercial lines and it
maintains a dominant presence in specialty lines like
transportation (42% market share), aviation (54% market share),
and engineering (49% market share).  The rating agency also
positively noted the diversified distribution channels of BISA
Seguros, including:

   -- local brokers (60% of premiums),
   -- independent agents (13%), and
   -- direct channels (27%).

BISA Seguros' profitability has improved from underwriting
losses in the 2000-02 period to underwriting profits averaging
2.7% of net earned premiums for the 2003-05 period, while the
company's average ROE of 10.2% for the 2001-2005 period is among
the highest in Bolivia.

Offsetting these strengths, Moody's noted BISA Seguros' high
underwriting leverage compared to its peers in the market.

Moody's said the ratings could be upgraded if the company
sustains its underwriting profits for the next few years with
combined ratios in the 95%-97% range, and/or if its underwriting
leverage ratio declines more in line with the industry average
(<1.5x).  Meanwhile, the ratings could be downgraded if the
company sustains a loss representing 15% or more of its
shareholder's equity and/or if it sustains a significant decline
in its market position in Bolivia.  An increase in exposure to
Bolivia's Government Bonds and Treasury Bills above the market
average or less diversified distribution channels, are other
factors that could lead to a rating downgrade.

Based in La Paz, BISA Seguros reported a BOB2.17 million net
income and BOB98.6 million of gross premiums for the first
quarter ended March 31, 2006.  The company reported
shareholders' equity of BOB70.9 million and total assets of
almost BOB209.7 million as of that date.


LA VITALICIA: Moody's LatAm Rates Global Local Currency at B3
-------------------------------------------------------------
Moody's Latin America has assigned insurance financial strength
ratings to La Vitalicia Seguros y Reaseguros de Vida S.A. of
Aa3.bo on Bolivia's national rating scale and B3 on the global
local-currency rating scale.  Both ratings have a stable
outlook.

La Vitalicia is one of the two companies offering insurance
coverage of death, disability and retirement for participants
-- both active workers and retirees -- of the privately-owned
Pension Funds.  Bolivia's Pension Funds Act created this type of
insurance coverage in 1996.  The company also distributes other
types of life insurance policies -- individual and credit-to the
general population in Bolivia.  La Vitalicia is part of the
important Bolivian financial conglomerate, BISA Group, which
includes:

   -- La Vitalicia,
   -- BISA Seguros,
   -- Banco BISA,
   -- BISA Leasing,
   -- BISA Agente de Bolsa, and
   -- BISA Administradora de Fondos de Inversion.

According to Moody's, La Vitalicia's ratings primarily reflect
not only its ownership but also the insurer's sustained strong
profitability -- which has been supported by investment results,
as well as its sizable market share and scale of operations, and
favorable financial profile compared to industry peers.  La
Vitalicia is the largest company in the overall Bolivian
insurance market in terms of total premiums (25.5% market share)
and in terms of assets (56% market share) as of December 31,
2005.  The company's above-average profitability for the last
five fiscal years is evident from its reported 14.2% average
return on equity and 1.7% average return on assets.

Moody's also noted as positive rating factors La Vitalicia's
significant client diversificationa and the substantial increase
in capitalization in recent years (shareholder's equity grew
from BOB96 as of year-end 2001 to BOB224.5 as of year-end 2005).

Partly offsetting these strengths are the company's modest
investment diversification -- La Vitalicia's holds 71% of total
investments in Bolivia's sovereign bonds and treasury bills --
and the spread compression or reduction in financial income over
the medium term.

Moody's said that La Vitalicia's ratings could be upgraded if
the company was able to diversify its premium composition--with
at least one other profitable business line representing 20 to
25% of total premiums -- and/or if solvency margins increased by
30%.  Conversely, a ratings downgrade could occur if losses
result in a decline in total shareholder's equity of more than
15% or if its exposure to sovereign bonds exceeded 75% of total
cash and investments.

Based in La Paz, La Vitalicia Seguros reported net profits of
BOB7.1 and gross premiums written of BOB102.5 million for the
first quarter ended March 31, 2006.  As of that date, the
company reported shareholders' equity of BOB250.8 million and
total assets of BOB2.2 billion.


SEGUROS ILLIMANI: Moody's LatAm Puts Caa1 Global Currency Rating
----------------------------------------------------------------
Moody's Latin America has assigned insurance financial strength
ratings to Seguros Illimani S.A. of A3.bo on Bolivia's national
rating scale and Caa1 on the global local-currency rating scale.  
Both ratings have a stable outlook.

Seguros Illimani is a property and casualty primary insurer that
is highly specialized in motor and car accident liability
insurance.  Several Bolivian businessmen privately own the
company, with one individual owning about 95% of the company's
shares.

According to Moody's, Illimani's ratings reflect the relatively
weak financial fundamentals of the company in comparison to
other property and casualty primary insurers in the Bolivian
market.  The company's poor profitability is indicated by
Illimani reporting underwriting losses in four of the last five
fiscal years.  In addition, Seguros Illimani is one of the
smallest participants in this market, with its market share
being 2.5% as of December 31, 2005, ranking it seventh among its
competitors.

The rating agency said that during the most recent fiscal year,
Illimani's loss ratio rose significantly, largely due to an
increase in incurred claims in the motor and mandatory
automobile accident insurance line (i.e. SOAT).  This led to a
net loss for the company and a decline in its shareholders'
equity for the fiscal year ended December 31, 2005.  Moody's
noted that SOAT is a mandatory insurance coverage which is
facing a declining trend in prices as a result of increased
competition among the major local players.  However, the rating
agency also commented that Illimani's 47% premium growth over
the last four fiscal years has led to a favorable reduction in
expense ratios from 56% of net premiums written to 51% at year-
end 2005.

Moody's also commented that the credit quality of the company's
investment portfolio is a concern.  As of December 31, 2005, 24%
of total cash and invested assets were B3-rated foreign-currency
Bolivian sovereign assets, and another 37% of the investment
portfolio is comprised of Caa1-rated foreign-currency bank
deposits.  The remaining 39% of investments is composed of rated
corporate bonds and other non-rated assets.

According to Alejandro Pavlov, VP-Senior Analyst, "Illimani
faces intense competition in its core business lines, which has
contributed to operating losses.  That said, Moody's views
Illimani's asset composition as being relatively better -- in
terms of premium receivables and cash and invested assets, etc.
-- than the market average."  In addition, Mr. Pavlov positively
noted the company's access to a diverse set of distribution
channels -- including independent agents, local brokers, direct
sales, and Illimani's branches.

Moody's said Illimani's rating could be upgraded if the company
exhibits a sustained trend toward break-even underwriting
results, with a combined ratio at or below 100%, combined with
greater diversification in its lines of business.  Additional
net losses -- representing 15% or more of current shareholder's
equity, and/or a deterioration in the company's investment
portfolio could lead to a rating downgrade.

Based in La Paz, Seguros Illimani reported gross premiums of
above Bs. 20.2 million and a BOB0.69 million net loss for the
first quarter of 2006 fiscal year ended March 31, 2006.  As of
that date, Illimani's shareholders' equity was about BOB15.1
million and total assets exceeded BOB45.9 million.


SEGUROS PROVIDA: Moody's LatAm Rates Global Currency at Caa1
------------------------------------------------------------
Moody's Latin America has assigned insurance financial strength
ratings to Seguros Provida S.A. of A2.bo on Bolivia's national
rating scale and Caa1 on the global local-currency scale.  Both
ratings have a stable outlook.

Seguros Provida, which is privately owned, is one of the two
companies in Bolivia offering insurance coverage of death and
disability for participants-both active workers and retirees-of
the private Pension Funds.  Bolivia's Pension Funds Act created
this type of insurance coverage in 1996.

According to Moody's, Seguros Provida's ratings primarily
reflect the company's sustained history of strong net income
driven by investment results and its sound market position.  The
company's strong profitability is reflected in its average
return on equity in excess of 20% over the past four fiscal
years although the rating agency noted that income has been
boosted by unusually high investment returns associated with
Bolivian sovereign assets.  As a consequence of Seguros
Provida's strong income, its shareholder's equity has grown
substantially -- from BOB30.0 million at year-end 2001 to
BOB65.7 million at year-end 2005.

Moody's noted that Provida maintains a strong market presence,
with a market share of 25% of total premiums in its main
business line (as of December 31, 2005) and 17% within the
overall market.

Offsetting these positive factors are Provida's poor investments
diversification -- more than 60% of assets were in dollar-
denominated B3-rated Bolivia's sovereign bonds and bills -- and
the potential spread compression or reduction in financial
income over the medium term.

According to Alejandro Pavlov, VP-Senior Analyst, "Moody's
expects that Provida's ratings could be upgraded if the company
diversifies its investment composition and/or if solvency
margins increased by 40%. Conversely, a loss representing more
than 20% of total shareholder's equity, and/or an increase in
the exposure to Bolivia's sovereign bonds above 75% of total
cash and invested assets, may add pressure to the present
rating".

Based in La Paz, Seguros Provida reported net earnings above
BOB12.1 million and gross premiums of about BOB26.6 million for
the first quarter ended March 31, 2006.  As of that date,
company's shareholders' equity was BOB77.7 million and Provida
held total assets of BOB687.8 million.


ZURICH BOLIVIANA: Moody's LatAm Affirms B2 Global Curr. Rating
--------------------------------------------------------------
Moody's Latin America has affirmed the insurance financial
strength ratings of Zurich Boliviana Seguros Personales at
Aa2.bo on Bolivia's national rating scale and B2 on the global
local-currency rating scale.  Both ratings have stable outlooks.

Zurich Boliviana is a life insurance company whose ultimate
shareholer is Zurich Financial Group, with a 51% ownership
stake.  The company focuses primarily on underwriting group and
credit life insurance for both individual policyholders and
corporations, and distributes its policies through multiple
sales channels, including independent agents, bancassurance, and
direct sales.

According to Moody's, the ratings of Zurich Boliviana reflect
its strong market position and relatively strong financial
profile in comparison to other Bolivian life insurers.  Zurich
Boliviana holds a market share of approximately 23% in the life
market (as of December 31, 2005) and has demonstrated improved
profitability and a more conservative operating leverage profile
than all of its principal competitors.

According to Alejandro Pavlov, VP-Senior Analyst, "Moody's sees
Zurich Boliviana as benefiting from a certain degree of parental
support from Zurich with respect to product design, staff
training, and internal reporting and controls.  Furthermore, the
use of the "Zurich" brand in this local operating subsidiary is
a very important factor in terms of market reputation and growth
potential."

Offsetting these strengths, the rating agency pointed out that
Zurich Boliviana shows a significant large client concentration
and a less diversified business profile, as more than 50% of its
premiums are in just one line of business--credit life
insurance.

Moody's commented that Zurich Boliviana's ratings could be
upgraded if these occur:

(a) a sustained improvement in underwriting results and/or

(b) continued premium growth and diversification with reduced
exposure to its largest clients. Conversely, factors that
    could lead to a ratings downgrade include a significant
    decline (i.e. 20%) in the company's capitalization and
    profitability ratios.

Based in La Paz, Zurich Boliviana reported a net profit of
BOB1.8 million for the first quarter ended March 31, 2006.  As
of that date, the company reported total assets of BOB103.2
million and shareholders' equity of BOB52.9 million.  Gross
premiums written for the 2006 first quarter were BOB12.9
million.




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


FURNAS I: Moody's LatAm Upgrades Global Currency Rating to Ba1
--------------------------------------------------------------
Moody's America Latina upgraded the ratings of Furnas I - FIDC
and Furnas II - FIDC to Ba1 from Ba2, on its Global Local
Currency Scale, and to Aa1.br from Aa3.br, on its Brazilian
National Scale.  This rating action concludes the review process
initiated on July 8, 2005 after the implementation of Moody's
rating methodology for Government Related Issuers, when the
ratings of both Furnas I - FIDC and Furnas II - FIDC, as well as
the rating of Furnas Centrais Eletricas S.A., were placed under
review for possible upgrade.

The upgrade of Furnas I - FIDC and Furnas II - FIDC ratings
follows the upgrade of Furnas' long-term senior unsecured
ratings to Ba1 from Ba2 on its Global Local Currency Scale, and
to Aa1.br from Aa3.br on its Brazilian National Scale.

Furnas I - FIDC and Furnas II - FIDC are closed-ended
receivables' investment funds that have issued senior shares
backed by collections on certain loans that both FIDCs have
purchased from Furnas, which is the originator of these loans.  
The ratings of the senior shares issued by both FIDCs are
primarily based on the irrevocable and unconditional full
recourse provided by Furnas in the event that collections from
those loans are not paid in accordance with their terms or are
cancelled.

Headquartered in Rio de Janeiro, Brazil, Furnas is one of
Brazil's largest electricity generation and transmission
utilities.

The complete rating action is:

   Furnas I - FIDC

      -- Senior Shares: upgraded to Aa1.br from Aa3.br
         (Brazilian National Scale); and to Ba1 from Ba2 (Global
         Local Currency Scale).

   Furnas II - FIDC

      -- Senior Shares - upgraded to Aa1.br from Aa3.br
         (Brazilian National Scale); and to Ba1 from Ba2 (Global
         Local Currency Scale).


FURNAS II: Moody's LatAm Raises Global Currency Rating to Ba1
-------------------------------------------------------------
Moody's America Latina upgraded the ratings of Furnas I - FIDC
and Furnas II - FIDC to Ba1 from Ba2, on its Global Local
Currency Scale, and to Aa1.br from Aa3.br, on its Brazilian
National Scale.  This rating action concludes the review process
initiated on July 8, 2005, after the implementation of Moody's
rating methodology for Government Related Issuers, when the
ratings of both Furnas I - FIDC and Furnas II - FIDC, as well as
the rating of Furnas Centrais Eletricas S.A., were placed under
review for possible upgrade.

The upgrade of Furnas I - FIDC and Furnas II - FIDC ratings
follows the upgrade of Furnas' long-term senior unsecured
ratings to Ba1 from Ba2 on its Global Local Currency Scale, and
to Aa1.br from Aa3.br on its Brazilian National Scale.

Furnas I - FIDC and Furnas II - FIDC are closed-ended
receivables' investment funds that have issued senior shares
backed by collections on certain loans that both FIDCs have
purchased from Furnas, which is the originator of these loans.  
The ratings of the senior shares issued by both FIDCs are
primarily based on the irrevocable and unconditional full
recourse provided by Furnas in the event that collections from
those loans are not paid in accordance with their terms or are
cancelled.

Headquartered in Rio de Janeiro, Brazil, Furnas is one of
Brazil's largest electricity generation and transmission
utilities.

The complete rating action is:

   Furnas I - FIDC

      -- Senior Shares: upgraded to Aa1.br from Aa3.br
         (Brazilian National Scale); and to Ba1 from Ba2 (Global
         Local Currency Scale).

   Furnas II - FIDC

      -- Senior Shares - upgraded to Aa1.br from Aa3.br
         (Brazilian National Scale); and to Ba1 from Ba2 (Global
         Local Currency Scale).


MRS LOGISTICA: Fitch Affirms & Withdraws BB Issuer Ratings
----------------------------------------------------------
Fitch Ratings has affirmed and simultaneously withdrawn MRS
Logistica S.A.'s foreign and local currency Issuer Default
Ratings of 'BB'.  The Rating Outlook is Stable.  Fitch has
withdrawn the ratings consistent with its policies and will no
longer provide ratings or analytical coverage of MRS.

MRS is a railway that provides freight transportation of iron
ore, steel and other industrial products in Brazil.  Three
principal rail lines of 1,700 kilometers serve as key
transportation links connecting Rio de Janeiro, Belo Horizonte,
Sao Paulo and the region's main ports. MRS was incorporated in
1996 by a consortium of iron ore and steel companies that now
include Companhia Vale do Rio Doce aka CVRD, Mineracoes
Brasileiras Reunidas and Companhia Siderurgica Nacional.  These
companies are captive customers and account for about two-thirds
of MRS's cargo volumes and revenues.


NOVELIS: Extends Consent Requests for Senior Notes to July 12
-------------------------------------------------------------
Novelis Inc. extended the expiration date in connection with its
consent solicitation relating to its 7-1/4% Senior Notes due
2015 (CUSIP Nos. 67000XAA4, C6780CAA1 and 67000XAB2) in order to
allow holders additional time to deliver their consents.  

Novelis is soliciting consents to proposed amendments to the
indenture pursuant to which the Notes were issued that would
give Novelis until Dec. 31, 2006, to become current in its
reporting obligations and a waiver of any and all defaults
caused by its not timely filing certain reports with the
Securities and Exchange Commission.  

The consent solicitation, which was scheduled to expire at 5:00
p.m., New York City time, on Friday, June 30, 2006, will now
expire at 5:00 p.m., New York City time, on Wednesday,
July 12, 2006, unless extended to a later time or date.

Upon the terms and subject to the conditions of the consent
solicitation, holders of record as of 5:00 p.m., New York City
time, on June 21, 2006, who validly deliver and do not revoke
their consents prior to the Expiration Date, will receive an
initial consent fee for each US$1,000 in principal amount of
Notes with respect to which consents are received equal to the
product of US$15 multiplied by a fraction, the numerator of
which is the aggregate principal amount of Notes outstanding on
the Expiration Date and the denominator of which is the
aggregate principal amount of Notes as to which Novelis received
and accepted consents.  

If Novelis has not filed its Annual Report on Form 10-K for the
year ended Dec. 31, 2005, with the SEC by 5:30 p.m., New York
City time, on Sept. 30, 2006, Novelis will pay to these holders
an additional US$5 for each US$1,000 in principal amount of
Notes as to which Novelis has received and accepted consents.

The effectiveness of the proposed amendments and waiver and the
payment of the Consent Fees are subject to the receipt of valid
consents that are not revoked in respect of at least a majority
of the aggregate principal amount outstanding of the Notes.  

Holders of the Notes may revoke their consents at any time
before the proposed amendments and waiver become effective, but
upon receipt by Novelis of the consents of a majority of holders
of the Notes the waiver will become effective, a supplemental
indenture setting forth the amendments will be executed and
consents may no longer be revoked unless Novelis fails to pay
holders the Consent Fees.

Citigroup Corporate and Investment Banking is serving as the
solicitation agent for the consent solicitation.  Questions
regarding the consent solicitation may be directed to:

     Citigroup Corporate and Investment Banking
     Telephone (212) 723-6106
     Toll Free (800) 558-3745

The information agent for the consent solicitation is Global
Bondholder Services Corporation.  Requests for copies of the
Consent Solicitation Statement and related documents may be
directed to:

     Global Bondholder Services Corporation
     Telephone (212) 430-3774
     Toll Free (866) 794-2200

                       About Novelis

Based in Atlanta, Georgia, Novelis Inc. (NYSE: NVL) (TSX: NVL)
-- http://www.novelis.com/-- provides customers with a regional    
supply of technologically sophisticated rolled aluminum products
throughout Asia, Europe, North America, and South America.  The
company operates in 11 countries and has approximately 13,000
employees.  Through its advanced production capabilities, the
company supplies aluminum sheet and foil to the automotive and
transportation, beverage and food packaging, construction and
industrial, and printing markets.

Novelis South America operates two rolling plants and primary
production facilities in Brazil.  The company's Pindamonhangaba
rolling and recycling facility in Brazil is the largest aluminum
rolling and recycling facility in South America and the only one
capable of producing can body and end stock.  The plant recycles
primarily used beverage cans, and is engaged in tolling recycled
metal for our customers.

                        *    *    *

As reported in the Troubled Company Reporter on May 18, 2006,
Moody's Investors Service placed the ratings of Novelis Inc.,
and its subsidiary, Novelis Corporation, under review for
possible downgrade.  In a related rating action, Moody's changed
Novelis Inc's speculative grade liquidity rating to SGL-3 from
SGL-2.

Novelis Corporation's Ba2 senior secured bank credit facility
rating was placed on review for possible downgrade.

Novelis Inc.'s Ba3 corporate family rating; Ba2 senior secured
bank credit facility and B1 senior unsecured regular
bond/debenture were placed on review for possible downgrade.


VARIG S.A.: Preliminary Injunction in Effect Until July 21
----------------------------------------------------------
The Honorable Robert D. Drain of the U.S. Bankruptcy Court for
the Southern District of New York had extended the preliminary
injunction for VARIG S.A. and its debtor-affiliates until
July 21, 2006, Executive Travel Associates reports.  

The U.S. Court directed Eduardo Zerwes, the court-appointed
Foreign Representative for the Debtors to submit a revised
proposed order detailing the airline's plans as it seeks another
buyer, ETA says.

Mr. Zerwes had presented another reason for the U.S. Court to
extend the preliminary injunction for a short period of time.

Rick B. Antonoff, Esq., at Pillsbury Winthrop Shaw Pittman LLP,
in New York, tells Judge Drain that VARIG Logistica S.A., the
former cargo and logistics affiliate of the Foreign Debtors that
was sold to Volo Logistics Brasil, an entity partially
controlled by MatlinPatterson Global Advisors LLP, made a
proposal to acquire VARIG's assets on June 23, 2006.  The
Commercial Bankruptcy and Reorganization Court in Rio de
Janeiro, Brazil have not yet accepted the VarigLog Proposal.

The VarigLog Proposal provides for the infusion of up to
US$20,000,000 in emergency funds and up to US$485,000,000 in
additional funding based on a timetable contained in a business
plan.  The Proposal contemplates the transfer of 30 leased
aircraft.

VarigLog's representatives also are in discussions with various
VARIG lessors to accomplish a consensual transfer of the Foreign
Debtors' rights under the relevant lease agreements, as well as
their consent to permit the Foreign Debtors to continue to
operate, or otherwise retain, aircraft pending completion of the
sale to VarigLog or other successful bidder under the terms of
the VarigLog Proposal.

The existence of the VarigLog Proposal does not affect the
Foreign Debtors' voluntary implementation of the Contingency
Return Plan with respect to any aircraft leased under operating
leases where the lessor has made a formal demand for the return
of aircraft, Mr. Antonoff clarifies.  To preserve the Foreign
Debtors' going concern value during the pendency of the VarigLog
Proposal, Mr. Antonoff says the Foreign Debtors have requested
VarigLog to promptly identify which aircraft it seeks to retain
in the VARIG fleet and to obtain consent from the lessors to
retain those aircraft.

However, the Foreign Debtors will continue to implement the
Contingency Return Plan with respect to aircraft under operating
leases whose return has been formally demanded, Mr. Antonoff
assures the Court.

Furthermore, to the extent that aircraft are now grounded and in
the custody of VARIG Engineering and Maintenance, the Foreign
Debtors have notified and instructed VEM not to remove or permit
the removal of parts other than for the purpose of returning
parts to their proper airframe and normal maintenance.

A full-text copy of the certified English translation of the
VarigLog Proposal is available for free at:

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

           Trustees Plea for Court to Protect Lessors

U.S. Bank National Association, Wells Fargo Bank Northwest,
N.A., and Wells Fargo Bank Northwest, N.A., as aircraft
trustees, insist that the Preliminary Injunction should be
allowed to expire so they may take actions necessary to protect
their interests in the Aircraft and seek immediate
implementation of the Contingency Plan at least as to their
Aircraft.

"It is time for [the U.S.] Court to protect the U.S. aircraft
lessors," Ann Acker, Esq., at Chapman and Cutler LLP, in
Chicago, Illinois, says.

If there is something to save with VARIG -- a deal to be made --
it should be left to the aircraft lessors and the economics of
the market, Ms. Acker asserts.

Ms. Acker reminds Judge Drain that VARIG had promised the U.S.
Court, and the aircraft lessors, that if the US$75,000,000 was
not deposited by NVP on June 23, 2006, VARIG would "continue,
essentially, the  implementation of the contingency return plan
by grounding the remaining aircraft that are operating and
performing its other obligations under the contingency return
plan."

Ms. Acker also points out that the Court conditioned
continuation of the Preliminary Injunction and non-
implementation of the Contingency Return Plan on (i) VARIG
allowing the lessors access to their aircraft so that the
lessors could provide their own security; and (ii) VARIG's
assembling and preparing the steps necessary to return not only
grounded aircraft, but other aircraft as well.

The US$75,000,000 was not deposited, however, the Contingency
Plan has not been implemented.

The Foreign Debtors owe more than US$8,618,477 in basic and
supplemental rent for the leased U.S. Bank and Wells Fargo
Aircraft through June 23, 2006, not including the Lessors' fees
and expenses Lessors.

The U.S. Bank Aircraft have been grounded since March 2006, or
earlier, and no payments have been made on either Aircraft for
March, April, May or June 2006.

               Aircraft SPC Snubs Volo Offer

The Court should give little, if any, weight to Volo's bid,
Michael Luskin, Esq., at Luskin, Stern & Eisler LLP, in New
York, argues on Aircraft SPC-6, Inc.'s behalf.

Mr. Luskin points out that MatlinPatterson and Volo have had two
opportunities to purchase VARIG, first, in the "Plan A" sale
presented by the Foreign Representatives at the April 27, 2006
hearing and again at the auction held June 8, 2006.  According
to Mr. Luskin, Volo has yet to demonstrate a commitment to
curing postpetition payment and maintenance defaults.  
MatlinPatterson's "Plan A" offer centered on a fleet cherry-
picked from the best aircraft VARIG had to offer without
consideration for the wishes of the Lessors.

Aircraft SPC-6 leases one Boeing 737-4YO aircraft to VARIG
together with two CFM International, Inc. CFM56-3C1, pursuant to
a four- year lease dated as of April 2, 2004.  VARIG owes
Aircraft SPC-6 US$364,375 in postpetition rent, maintenance
reserves and other payments.  The debt increases by US$125,000
per month, according to Mr. Luskin.

"Unless MatlinPatterson and Volo present credible evidence of
sincerity to move expeditiously and in a manner which does not
prejudice any lessor, neither VARIG, the foreign representative
nor the Court should delay the Contingency Return Plan based on
Volo's reported interest," Mr. Luskin contends.

"The Court must require the Foreign Representatives to face
reality and begin returning aircraft to the Lessors.  Each
hearing before the Court has resulted in the Court's granting
the foreign representatives' request for extended relief -- a
few days or a few weeks, depending on the hearing. As the
Lessors have time and again predicted, all of VARIG's expected
breaks have resulted in disappointment."

Mr. Luskin also points out that VARIG's fuel crisis has
escalated.  The airline has operated on credit to Petrobas for
jet fuel for some time, and that Petrobas will cut VARIG's
credit at any day, if it has not done so already.  It would be
imprudent to convert the preliminary injunction to a permanent
injunction at this time, Mr. Luskin says.

No Lessor should be forced to deal with any buyer of VARIG which
does not demonstrate a commitment to the Lessors, Mr. Luskin
tells Judge Drain.

                         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. 24; Bankruptcy
Creditors' Service, Inc., 215/945-7000)


* BRAZIL: Will Build US$150 Mil. Transmission Line with Uruguay
---------------------------------------------------------------
Brazil's mines and energy ministry said in a statement that the
government has agreed with its Uruguayan counterpart to
construct a US$150 million transmission line that would run
400km between the two nations.

Business News Americas relates that the agreement ratifies an
accord entered by the two countries in March.

The 500-kilovolt-transmission line would link Candiota, Brazil,
and San Carlos, Uruguay, BNamericas states.  The line would
increase the power transmission capacity between Uruguay and
Brazil beyond the current 72 megawatts.

The Uruguayan government will invest in the project and operate
it.  The government is interested in gaining access to the power
transmission of Brazil to boost local supply.

According to BNamericas, officials from the two countries are
also negotiation on the construction of a 300-megawatt coal-
fired power generation project in Candiota to export power to
Uruguay.

Uruguay and Brazil will conduct feasibility studies for the
transmission line, BNamericas states.

                        *    *    *

Fitch upgraded these ratings of Brazil on June 29, 2006:

   -- Long-term foreign currency IDR: to 'BB' from 'BB-';
   -- Long-term local currency IDR: to 'BB' from 'BB-'; and
   -- Country ceiling to 'BB' from 'BB-'.

Fitch also affirms Brazil's short-term rating at 'B'.

Fitch said the Rating Outlook is Stable.




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


ATHABASCA LIMITED: Claims Filing Deadline Is Set for July 27
------------------------------------------------------------
Athabasca Limited's creditors are required to submit proofs of
claim by July 27, 2006, to the company's liquidators:

   Janet Crawshaw
   Jamal Young   
   P.O. Box 1109, George Town
   Grand Cayman, Cayman Islands
   Tel: (345) 949-7755
   Fax: (345) 949-7634

Creditors who are not able to comply with the July 27 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Athabasca Limited's shareholders agreed on June 15, 2006, for
the company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


CANNONBERRY LTD: Will Hold Final Shareholders Meeting on July 26
----------------------------------------------------------------
Cannonberry Ltd.'s shareholders will convene for a final meeting
on July 26, 2006, at:

        Smith Barney Private Trust Company (Cayman) Limited,
        CIBC Financial Centre, George Town
        Grand Cayman, Cayman Islands

Accounts on the company's liquidation process will be presented
during the meeting.  

The liquidators can be reached at:

        Buchanan Limited   
        Attention: Timothy Haddleton
        P.O. Box 1170, George Town
        Grand Cayman, Cayman Islands
        Tel: (345) 949-0355
        Fax: (345) 949-0360


CHESHAM INVESTMENTS: Final Shareholders Meeting Is on July 26
-------------------------------------------------------------
Chesham Investments Ltd.'s shareholders will convene for a final
meeting on July 26, 2006, at:

        Smith Barney Private Trust Company (Cayman) Limited,
        CIBC Financial Centre, George Town
        Grand Cayman, Cayman Islands

Accounts on the company's liquidation process will be presented
during the meeting.  

The liquidators can be reached at:

        Buchanan Limited   
        Attention: Timothy Haddleton
        P.O. Box 1170, George Town
        Grand Cayman, Cayman Islands
        Tel: (345) 949-0355
        Fax: (345) 949-0360


DERWENT LIMITED: Creditors Must File Proofs of Claim by July 27
---------------------------------------------------------------
Derwent Limited's creditors are required to submit proofs of
claim by July 27, 2006, to the company's liquidators:

   Janet Crawshaw
   Jamal Young   
   P.O. Box 1109, George Town
   Grand Cayman, Cayman Islands
   Tel: (345) 949-7755
   Fax: (345) 949-7634

Creditors who are not able to comply with the July 27 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Derwent Limited's shareholders agreed on June 15, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


DFK INVESTMENT: Shareholders Final Meeting Is on July 26
--------------------------------------------------------
DFK Investment Co. Ltd.'s shareholders will convene for a final
meeting on July 26, 2006, at:

        Smith Barney Private Trust Company (Cayman) Limited,
        CIBC Financial Centre, George Town
        Grand Cayman, Cayman Islands

Accounts on the company's liquidation process will be presented
during the meeting.  

The liquidators can be reached at:

        Buchanan Limited   
        Attention: Timothy Haddleton
        P.O. Box 1170, George Town
        Grand Cayman, Cayman Islands
        Tel: (345) 949-0355
        Fax: (345) 949-0360


DREWCAT CAPITAL: S&P Rates US$50 Million Variable Notes at BB-
--------------------------------------------------------------
Standard & Poor's Ratings Services assigned its BB- senior debt
rating to Drewcat Capital Ltd.'s US$50 million principal at-risk
variable-rate notes, which are due Dec. 28, 2006.
     
The proceeds from the issuance of the notes will provide
Dominion Resources Inc. (BBB/Stable/A-2) with a source of
parametric coverage for hurricanes in three hurricane
calculation locations on a per-occurrence basis over a six-month
period.
     
Drewcat is an exempted company incorporated under the laws of
the Cayman Islands, the sole business of which will consist of
the issuance of the notes, entering into the transaction
agreements, and the performance of activities related thereto.  
After issuing the notes, DREWCAT invested the proceeds in high-
quality permitted investments within a collateral account.  
Drewcat will swap the total return of the asset portfolio with
Lehman Brothers Special Financing Inc., which has been
guaranteed by Lehman Brothers Holdings Inc. (A+/Stable/A-1) in
exchange for quarterly LIBOR-based payments.
     
As part of the transaction, Drewcat also entered into a
counterparty contract with Dominion.  Under this agreement,
Dominion will make quarterly payments to Drewcat of 20.60%
multiplied by the principal amount on an actual/360 basis.  This
payment--along with the proceeds received under the total return
swap--will be used to make the scheduled interest payments to
the noteholders.  Drewcat's obligations under the counterparty
contract will require it to make payments for any hurricane
event meeting certain established criteria with respect to wind
speed and location, up to US$50 million.
     
This structure essentially provides Dominion resources with
insurance coverage for certain of its energy assets located in
Gulf of Mexico off the coast of Louisiana.  If a hurricane with
a maximum sustained wind speed in excess of the threshold amount
were to pass through any of these locations, then the
noteholders would be at risk for a loss of principal.  The
rating on the notes reflects the probability of attachment for
the three hurricane calculation locations based on EQECAT Inc.'s
near-term analysis.
     
If a storm has been declared a hurricane by the National
Hurricane Center/Tropical Prediction Center, Dominion will
notify EQE who will prepare an event report based on the best
track data for the hurricane event as well as reported maximum
sustained wind speeds.  If EQE determines that a covered event
has occurred, it would notify the relevant parties that Drewcat
will be required to make a payment to Dominion for the resulting
calculated loss.


ERIE LIMITED: Last Day to File Proofs of Claim Is on July 27
------------------------------------------------------------
Erie Limited's creditors are required to submit proofs of claim
by July 27, 2006, to the company's liquidators:

   Janet Crawshaw
   Jamal Young   
   P.O. Box 1109, George Town
   Grand Cayman, Cayman Islands
   Tel: (345) 949-7755
   Fax: (345) 949-7634

Creditors who are not able to comply with the July 27 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Erie Limited's shareholders agreed on June 14, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


NEW STRATUS: Final Shareholders Meeting Is Set for July 27
----------------------------------------------------------
New Stratus Investments Limited's final shareholders meeting
will be at 11:00 a.m. on July 27, 2006, at the company's
registered office.

These agenda will be taken during the meeting:

   1) accounting of the liquidation process showing how the
      winding up has been conducted during the preceding year,

   2) requesting the members' approval of the liquidation fees
      incurred to date, approval of the liquidator's estimated
      costs to completion, and

   3) hearing any explanation that may be given by the
      liquidator.

A member entitled to attend and vote at the meeting may appoint
a proxy, who need not be a member, in his stead.

The liquidator can be reached at:

   Westport Services Ltd.
   Attention: Bonnie Willkom
   P.O. Box 1111
   Grand Cayman, Cayman Islands
   Tel: (345) 949-5122
   Fax: (345) 949-7920


ONTARIO LIMITED: Proofs of Claim Filing Is Until July 27
--------------------------------------------------------
Ontario Limited's creditors are required to submit proofs of
claim by July 27, 2006, to the company's liquidators:

   Janet Crawshaw
   Jamal Young   
   P.O. Box 1109, George Town
   Grand Cayman, Cayman Islands
   Tel: (345) 949-7755
   Fax: (345) 949-7634

Creditors who are not able to comply with the July 27 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Ontario Limited's shareholders agreed on June 14, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


PARKLAND INVESTMENTS: Last Shareholders Meeting Is on July 26
-------------------------------------------------------------
Parkland Investments Ltd.'s shareholders will convene for a
final meeting on July 26, 2006, at:

        Smith Barney Private Trust Company (Cayman) Limited,
        CIBC Financial Centre, George Town
        Grand Cayman, Cayman Islands

Accounts on the company's liquidation process will be presented
during the meeting.  

The liquidators can be reached at:

        Buchanan Limited   
        Attention: Timothy Haddleton
        P.O. Box 1170, George Town
        Grand Cayman, Cayman Islands
        Tel: (345) 949-0355
        Fax: (345) 949-0360


PRIMUS JAPAN: Final Shareholders Meeting Is Set for July 27
-----------------------------------------------------------
Primus Japan Funding 03-B Holding Company's final shareholders
meeting will be at 9:00 a.m. on July 27, 2006, at the company's
registered office.

These agenda will be taken during the meeting:

   1) accounting of the liquidation process showing how the
      winding up has been conducted during the preceding year,

   2) requesting the members' approval of the liquidation fees
      incurred to date, approval of the liquidator's estimated
      costs to completion, and

   3) hearing any explanation that may be given by the
      liquidator.

A member entitled to attend and vote at the meeting may appoint
a proxy, who need not be a member, in his stead.

The liquidator can be reached at:

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




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


AES CORP: Acquires Majority Ownership of Wind Energy Ltd.
---------------------------------------------------------
The AES Corporation acquired majority control of the Wind Energy
Ltd. group companies, a UK-based wind development company, with
640 MW of wind generation projects under development throughout
Scotland.  Terms of the transaction were not disclosed.

"This acquisition is the first expansion of AES's wind energy
business into Europe and represents a strategic step in our
efforts to become a leader in wind generation development and
operation worldwide," said William Luraschi, AES Executive Vice
President of Business Development. "Growing our wind energy
business is a key component of our expansion into alternative
energy.  With global installed wind generation capacity expected
to more than double over the next five years, we see tremendous
growth opportunities in wind and we will continue to seek
expansion projects worldwide."

"Through this transaction, AES gains a portfolio of wind
projects in a market that has huge potential for growth," said
Ned Hall, AES Vice President of Wind Generation.  "The UK has
one of the fastest growing and most attractive wind energy
markets in Europe, where installed capacity is expected to
increase fivefold over the next four years. In addition,
Scotland enjoys some of the highest wind resources in the world,
which allows for particularly efficient wind power generation.
That's just the type of opportunity we're looking for globally."

AES has been in the wind generation business since 2004 and
currently operates 600 MW of wind facilities.  On April 17,
2006, the company announced plans to triple its investment in
wind generation over the next three years, and currently is
pursuing an additional 2,000 MW of wind projects in development,
primarily in the United States.  AES also said it is currently
evaluating wind power projects in continental Europe, China,
India and Central and South America, with an emphasis on
countries with existing AES businesses.

AES has operated generation businesses in the United Kingdom
since 1992, when it acquired AES Kilroot, a 520 MW coal-, oil-
and biomass-fired power plant in Northern Ireland.  AES also
owns and operates AES Indian Queens, a 140 MW oil-fired plant in
England.

                     About Wind Energy

Founded in 2002, Wind Energy is a privately held company engaged
solely in the development of wind power projects in Scotland.  
As part of this transaction, the Wind Energy group is being
restructured with AES taking a controlling interest in each of
the group companies.

                      About AES Corp.

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.




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


ECOPETROL: Presents Bid for Niscota Oil Field
---------------------------------------------
Ecopetrol has submitted a bid for the exploration of the
Colombian Niscota oil field, Dow Jones Newswires reports.

Colombia's National Hydrocarbons Association or ANH told Dow
Jones that there were nine oil firms that sent their offers for
the oil field.

According to Dow Jones, other bidders include:

   -- London-based BP PLC,
   -- French Total S.A.,
   -- Russia's Lukoil Holdings,
   -- Spain's Repsol YPF,
   -- Argentine Pluspetrol Resources Corporation,
   -- France's Perenco,
   -- UK Talisman Energy (TLM), and
   -- Hocol SA, the Colombian unit of France's Etablissements
      Maurel et Prom SA.

Dow Jones relates that ANH will choose on July 24 the firms that
passed the financial and technical requirements.  In August, the
chosen companies will have access to the information and
archives of the work already done on Niscota.

ANH said on its Web site that the Colombian government moved the
date of the action to Sept. 1 from Aug. 17.

The winner will be the firm that offers to transfer the biggest
percentage of the eventual production to the government of
Colombia, Dow Jones states, citing Ana Maria Briceno, the
National Association of Hydrocarbons' deputy director.

The new operator of the field will work alone and will have
exploration rights for six years as well as production rights
for 24 years.

Dow Jones states that BP, together with Ecopetrol, already
explored the Niscota field since 2000.  BP invested more than
US$50 million to search for oil in Niscota.  When it did not
find any profitable reserve, it abandoned the exploration.

However, Ms. Briceno said in May that the geology of Niscota
suggests the presence of hydrocarbons, Dow Jones says.

"They didn't find any commercial reserve.  But there must
certainly be interesting things underground," Ms. Briceno told
Dow Jones.

The auction is part of the government's effort to encourage
firms to invest in Colombia to search for oil and replenish the
declining reserves.  

Crude oil is the number one export of Colombia.  It is also a
very important source of revenue.  Unless there is major oil
discover, the country may risk losing oil self-sufficiency by
2012.

Ecopetrol is an integrated-oil company that is wholly owned by
the Colombian government.  The company's activities include
exploration for and production of crude oil and natural gas, as
well as refining, transportation, and marketing of crude oil,
natural gas and refined products.  Ecopetrol is Latin America's
fourth-largest integrated-oil concern.  Operations are organized
into Exploration & Production, Refining & Marketing,
Transportation, and International Commerce & Gas.

On June 27, 2006, Fitch Ratings revised the rating outlook of
the long-term foreign currency issuer default rating of
Ecopetrol S.A. to Positive from Stable.  This rating action
follows the recent revision in the Rating Outlook to Positive
from Stable of the 'BB' foreign currency IDR of the Republic of
Colombia.  Ecopetrol's IDR remain strongly linked with the
credit profile of the Republic of Colombia.




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


CENTRAL AMERICAN: Paritz Replaces Killman Murrell as Auditor
------------------------------------------------------------
The Board of Directors of Central American Equities Corp.
dismissed Killman, Murrell & Company, P.C., as the Company's
principal independent accountant on June 26, 2006.

Paritz & Company, P.A., replaces Killman Murrell as the
Company's principal independent accountant and will audit the
Company's financial statements for the fiscal year ended
June 30, 2006.

The Company says that it did not have any disagreement with
Killman Murrell prior to the firm's dismissal.

                     Going Concern Doubt

As reported in the Troubled Company Reporter on May 4, 2006,
Killman, Murrell raised substantial doubt about Central American
Equities Corp.'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
sales growth uncertainty and inability to raise sufficient
capital.

                   About Central American

Central American Equity Corp. provides an integrated eco-
vacation experience in Costa Rica, and owns and operates hotels
and real property in that place.

At March 31, 2006, the Company's balance sheet showed
US$5,447,653 in total assets, US$674,289 in total liabilities,
and US$4,773,364 in stockholders' equity.


* COSTA RICA: Technicians Seek to Lower Internet Rates by 50%
-------------------------------------------------------------
The technicians of the Autoridad Reguladora de Servicios
Publicos or Aresep are asking the Instituto Costarricense de
Electricidad, the sole telecommunications provider in Costa
Rica, to reduce Internet connection rates by 50% to US$19
monthly, Inside Costa Rica reports.

Inside Costa Rica relates that once the recommendation is
followed, ICE will bring down connection rates currently at
US$41 for connection speeds of 256Kbp.  The rate does not
include an additional US$1 for the modem rental as well as the
13% sales tax on services.

The recommended rates are the maximum and ICE could charge less,
Aresep told Inside Costa Rica.

                        *    *    *

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




=======
C U B A
=======


* CUBA: Tourist Air Transportation Increases 7% in 2006
-------------------------------------------------------
Rogelio Acevedo, the president of the Civil Aeronautics
Institute of Cuba, told Prensa Latina that tourist air
transportation increased over 7% this year, compared with last
year.

Daily Juventud Rebelde reports that the Civil Aeronautics has
firmed up passengers plans scheduled from January to June.

Mr. Acevedo told Juventud that Cuba is investing in the airports
of:

     -- Santa Clara,
     -- Holguin, and
     -- Manzanillo.

Cuba aims to modernize runways and other facilities, develop
tourism and improve passengers' attention, among others,
Juventud states, citing Mr. Acevedo.

                       *    *    *

Moody's assigned these ratings on Cuba:

      -- CC LT Foreign Bank Depst, Caa2
      -- CC LT Foreign Curr Debt, Caa1
      -- CC ST Foreign Bank Depst, NP
      -- CC ST Foreign Curr Debt, NP
      -- Issuer Rating, Caa1




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


FALCONBRIDGE: Industry Canada Delays Xstrata Investment Review
--------------------------------------------------------------
The Investment Review Division of Industry Canada reported that
the Minister responsible for the Investment Canada Act is unable
to complete the consideration of Xstrata plc's investment in
connection with the proposed acquisition of Falconbridge Limited
within the initial 45-day period.  As prescribed in the ICA, the
Minister extended the review period to 30 days from
July 3, 2006.

In Canada, all foreign companies seeking to invest must be
cleared under the Investment Canada Act, assessing whether the
investment will have a "net benefit" to the country.

According to Reuters, Xstrata owns 20% of Falconbridge and is
trying to buy 80% of its shares in a hostile bid.

                         About Xstrata

Xstrata plc -- http://www.xstrata.com/-- is a major global  
diversified mining group, listed on the London and Swiss stock
exchanges.  The Group is and has approximately 24,000 employees
worldwide, including contractors.

Xstrata does business in six major international commodities
markets: copper, coking coal, thermal coal, ferrochrome,
vanadium and zinc, with additional exposures to gold, lead and
silver.  The Group's operations and projects span four
continents and nine countries: Australia, South Africa, Spain,
Germany, Argentina, Peru, Colombia, the U.K. and Canada.

                      About Falconbridge

Headquartered in Toronto, Ontario, Falconbridge Limited
(TSX:FAL.LV) (NYSE: FAL) -- http://www.falconbridge.com/--  
is a leading copper and nickel company with investments in fully
integrated zinc and aluminum assets.  Its primary focus is the
identification and development of world-class copper and nickel
orebodies.  It employs 14,500 people at its operations and
offices in 18 countries.  The Company owns nickel mines in
Canada and the Dominican Republic and operates a refinery and
sulfuric acid plant in Norway.  It is also a major producer of
copper (38% of sales) through its Kidd mine in Canada and its
stake in Chile's Collahuasi mine and Lomas Bayas mine.  Its
other products include cobalt, platinum group metals, and zinc.

                        *    *    *

Falconbridge's CDN$150 million 5% convertible and callable bonds
due April 30, 2007, carries Standard & Poor's BB+ rating.




=====================
E L   S A L V A D O R
=====================


MILLICOM INT'L: Number of Subscribers Increase by 1.4 Million
-------------------------------------------------------------
Millicom International Cellular S.A. reports that it added over
1.4 million subscribers on a pro forma basis through organic
growth across its operations in the second quarter of 2006,
bringing the total for the Group to 10,903,277 as of June 30.

These subscriber additions represent growth of 15% in total
subscribers from the previous quarter and growth of 62% from the
second quarter of 2005, on a pro forma basis.

Marc Beuls, Millicom President and Chief Executive Officer said,
"With subscriber acquisition growth of nearly 15% in Q2,
following strong growth in Q1, we have demonstrated the effect
of our increased investment in the rapidly growing emerging
markets in which we are operating.  Our success has been driven
by a number of key drivers, the launch of the Tigo brand in
Latin America and Africa, improved distribution networks and
substantially increased capex which adds significant extra
capacity and coverage and therefore gives us a competitive
advantage in providing the best offer in the market.  We have
seen the highest subscriber growth in Africa but the growth in
Latin America and South Asia have also been strong."

Pro forma subscriber numbers for the current and previous
quarters exclude some 400,000 subscribers in Pakcom, following
the disposal of the Pakcom business.

Millicom International Cellular S.A. -- http://www.millicom.com/
-- is a global telecommunications investor with cellular
operations in Asia, Latin America and Africa.  It currently has
cellular operations and licenses in 16 countries.  The Group's
cellular operations have a combined population under license of
approximately 391 million people.

The Central America Cluster comprises Millicom's operations in
El Salvador, Guatemala and Honduras.  The population under
license in Central America at December 2005 is 26.4 million.
The South America Cluster comprises Millicom's operations in
Bolivia and Paraguay.  The population under license in South
America at December 2005 is 15.2 million.

                        *    *    *

Millicom International's 10% senior notes due 2013 carry Moody's
B3 rating and Standard & Poor's B- rating.

                        *    *    *

Standard & Poor's Ratings Services affirmed on July 4, 2006, its
'B+' long-term corporate credit and 'B-' senior unsecured debt
ratings on Millicom International Cellular S.A.  The ratings
were removed from CreditWatch with developing implications,
where they had been placed on Jan. 20, 2006, on the initiation
of a strategic review that could have led to a transaction such
as the sale of all or part of the company.  The outlook is
stable.


MILLICOM INTERNATIONAL: Two Firms Expected to Retry on Buy Bids
---------------------------------------------------------------
Dubai's Investcom and Kuwait's MTC are expected to retry
attempts to acquire Millicom International Cellular S.A., after
the latter said no to China Mobile's US$5.3 billion offer,
Business Times reports.

As reported in the Troubled Company Reporter on July 5, 2006,
Millicom decided to terminate all discussions concerning a
potential sale of the entire share capital of the company.  
Since May 2006, the company had been in prolonged discussions
and due diligence with one potential purchaser -- which reports
had identified as China Mobile -- but had concluded that the
purchaser would not be in a position within an acceptable
timeframe to make a binding offer that is suitably attractive,
given the current strong performance of the business, or
sufficiently certain of closing.  Millicom did not push through
with the deal due to China Mobile's "last minute price
concerns."

However, the Business Times relates that there are expectations
that Investcom and MTC would renew their bids for Millicom, as
they are now the strong contenders for the company.  The two
firms -- along with Egypt's Orascom, Norway's Telenor and
Mexico's America Movil -- had been outbid by China Mobile
earlier.

Claire Maloney, a spokesperson for Investcom, told Khaleej Times
that the company would not make any speculative comments in the
aftermath of China Mobile's withdrawal of offer for Millicom.  

Investcom is focusing at this point on a crucial acquisition or
merger deal with MTN, a mobile phone group in South Africa, as
the company wants to make the best value for its shareholders
from the deal, Business Times states, citing Ms. Maloney.

Millicom International Cellular S.A. -- http://www.millicom.com/
-- is a global telecommunications investor with cellular
operations in Asia, Latin America and Africa.  It currently has
cellular operations and licenses in 16 countries.  The Group's
cellular operations have a combined population under license of
approximately 391 million people.

The Central America Cluster comprises Millicom's operations in
El Salvador, Guatemala and Honduras.  The population under
license in Central America at December 2005 is 26.4 million.
The South America Cluster comprises Millicom's operations in
Bolivia and Paraguay.  The population under license in South
America at December 2005 is 15.2 million.

                        *    *    *

Millicom International's 10% senior notes due 2013 carry Moody's
B3 rating and Standard & Poor's B- rating.




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


* GUATEMALA: Farmers Occupy Six State Farms in Protest of FTA
-------------------------------------------------------------
Farmers in Guatemala have occupied six state farms in the north
and eastern regions since Sunday in protest of the country's
entering into a Free Trade Agreement or FTA with the United
States, Prensa Latina reports.

Prensa Latina states that the farms were occupied when the FTA
was implemented on July 1, as the small and medium farmers
believe that it would have immediate negative effects on them.  
FTA puts them in a situation where they have to compete on equal
terms with a more powerful economy.

Hundreds of US agricultural products can now enter Guatemala,
tariff-free, as indicated in a list published by Diario Oficial.

According to Prensa Latina, among the farmers' worries include
the lack of a Law on Rural Development, which could help them
compensate for losses resulting from the FTA.

Jorge Ortega, the Guatemalan army's spokesperson, told Prensa
Latina that two of the farms are under the custody of the army,
demanding eviction to the Public Ministry.

Talks with the Farmer Unity Committee started on Tuesday to
resolve the conflict, Prensa Latina states, citing Claudia
Villagran, the assistant secretary to the Presidency's
Agricultural Affairs.

                        *    *    *

Fitch Ratings assigned these ratings on Guatemala:

                     Rating     Rating Date
                     ------     -----------
   Country Ceiling    BB+      Feb. 22, 2006
   Long Term IDR      BB+      Feb. 22, 2006
   Short Term IDR     B        Feb. 22, 2006
   Local Currency
   Long Term Issuer
   Default Rating     BB+      Feb. 22, 2006

                        *    *    *

Fitch also rated Guatemala's senior unsecured bonds:

Maturity Date          Amount        Rate       Ratings
-------------          ------        ----       -------
Aug. 3, 2007        US$150,000,000     8.5%         BB+
Nov. 8, 2011        US$325,000,000    10.25%        BB+
Aug. 1, 2013        US$300,000,000     9.25%        BB+
Oct. 6, 2034        US$330,000,000     8.125%       BB+


* GUATEMALA: Korea Electric May Invest in Power Sector
------------------------------------------------------
Julio Rene Morales, a lawmaker and the president of the energy
and mines committee in Guatemala, said in a congressional
statement that Korea Electric Power aka Kepco, which is based in
Seoul, is interested in investing in the country's power sector.

Mr. Morales told Business News Americas that Kepco's proposal
would reduce electricity rates 50% letting the Guatemalan
government sell power directly to clients instead of through
transnational firms that monopolize and impose prices.

The energy and mines committee has begun reviewing the general
electricity law to propose reforms, BNamericas states, citing
Mr. Morales.

Mr. Morales has met with the delegation from Kepco, BNamericas
relates.

                        About Kepco

Korea Electric Power is one of South Korea's largest public
corporations with more than 20,000 employees.

                        *    *    *

Fitch Ratings assigned these ratings on Guatemala:

                     Rating     Rating Date
                     ------     -----------
   Country Ceiling    BB+      Feb. 22, 2006
   Long Term IDR      BB+      Feb. 22, 2006
   Short Term IDR     B        Feb. 22, 2006
   Local Currency
   Long Term Issuer
   Default Rating     BB+      Feb. 22, 2006

                        *    *    *

Fitch also rated Guatemala's senior unsecured bonds:

Maturity Date          Amount        Rate       Ratings
-------------          ------        ----       -------
Aug. 3, 2007        US$150,000,000     8.5%         BB+
Nov. 8, 2011        US$325,000,000    10.25%        BB+
Aug. 1, 2013        US$300,000,000     9.25%        BB+
Oct. 6, 2034        US$330,000,000     8.125%       BB+




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


* HAITI: Regains Membership in Caricom
--------------------------------------
Haiti has formally entered the Caribbean Community and Common
Market or Caricom after being expelled from the group for two
years, Merco Press reports.

Haiti was barred from the Caricom in February 2004 due to an
uprising that forced the resignation of Jean Bertrand Aristide,
the country's former leader, Merco Press says.

As reported in the Troubled Company Reporter-Latin America on
July 3, 2006, Haiti's President Rene Garcia Preval disclosed his
plan to reenter his country in Caricom to:

    -- Edwin Carrington, the Caricom Secretary-General,

    -- Ambassador Colin Granderson, the Assistant Secretary-
       General for Foreign and Community Relations, and

    -- Hugh Cholmondeley, the Chairman of the Caricom Task Force
       on Haiti, Hugh Cholmondeley.

The leaders of the 15 countries that comprised Caricom welcomed
Haitian President Rene Preval during their annual three-day
summit in St. Kitts on Monday, although the agenda of the
meeting was trade, economic development and cooperation on crime
fighting, Merco Press states.

Merco Press suggests that Haiti's acceptance in the Caricom has
something to do with the successful general election that the
country held last February.  The election was described as free
and fair.

                        *    *    *

Haiti is currently seeking international help to spur economic
development in the country.  President Rene Preval submitted
that the country's poverty, widespread unemployment and the
dilapidated state of infrastructures will be alleviated with
increased international assistance.




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


AIR JAMAICA: Expected to Participate in Trade Exposition
--------------------------------------------------------
Air Jamaica is expected to join a trade exposition, according to
the Jamaica Information Service.  The trade exposition will
highlight travel and tourism in Jamaica.

JIS reports that other expected participants in the exposition
include:

      -- Victoria Mutual Building Society,
      -- GraceKennedy, and
      -- Jamaica Tourist Board.

The trade exposition will be held concurrently with the 29th
annual convention co-hosted by the Jamaican National Association
of the Washington Metropolitan Area and the Jamaican Association
of Maryland, JIS reports.

                        *    *    *

Air Jamaica's US$200 million 9-3/8% notes due July 18, 2015,
carries Moody's B1 rating and Standard & Poor's B rating.


BANK JAMAICA: Unit Will Make Public Offer of Preference Shares
--------------------------------------------------------------
NCB Capital Markets, a unit of the National Commercial Bank
Jamaica Ltd. aka NCB, disclosed plans of making a public offer
of its preference shares, Radio Jamaica reports.

Radio Jamaica relates that NCB Capital wants to raise US$300
million through the public offer.

After the allotment of the shares, an application will be made
to the Jamaica Stock Exchange for the units to be listed, NCB
told Radio Jamaica.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Feb. 13, 2006, Fitch initiated rating coverage on Jamaica's
National Commercial Bank Jamaica, Ltd., by assigning 'B+'
ratings on the bank's long-term foreign currency.  Other ratings
assigned by Fitch include:

   -- Long-term local currency 'B+';
   -- Short-term foreign currency 'B';
   -- Short-term local currency 'B';
   -- Individual 'D';
   -- Support '4'.

The ratings had a stable rating outlook.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Jan. 20, 2005, Standard & Poor's Rating Services affirmed its
'B/B' counterparty credit and CD ratings on National Commercial
Bank Jamaica Ltd., with a stable outlook.




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


COTT CORP: Brent Willis Signs Employment Agreement as CEO
---------------------------------------------------------
Brent Willis, Cott Corp.'s new President and Chief Executive
Officer, executed an employment agreement with the company on
June 21, 2006.  Mr. Willis replaced former CEO, John K.
Sheppard.

The Employment Agreement has an indefinite term and can be
terminated by either party upon 30 days notice to the other.  
Under the terms of the Employment Agreement, the company will
pay Mr. Willis a base salary of US$700,000 per year.  He will
also be eligible to participate in the company's short-term
executive bonus plan with an annual target bonus equal to his
base salary, as well as the opportunity to earn up to 200% of
base salary based on company and personal performance.  His
bonus for 2006 will be prorated based on actual employment
during 2006.

Mr. Willis will also be eligible to participate in the company's
long-term incentive plan with an annual target award equal to
200% of his base salary.  His award under the long-term
incentive plan for 2006 will be paid in cash, prorated for
actual employment during 2006, and must be used to purchase
common shares of the company, which shares must be held for
three years and which are subject to forfeiture if his
employment is terminated prior to the third anniversary thereof,
under certain circumstances.

As an inducement to enter into employment with the company and
in order to compensate Mr. Willis for certain benefits to which
he would have been entitled at his previous employer, Mr. Willis
will receive:

    a) a cash bonus of US$945,000;

    b) an equity award of US$3,176,375, to vest in three equal
       installments on the first three anniversaries of the
       grant; and

    c) participation in the company's Performance Share Unit
       Plan by way of a grant with a market value equal to
       US$1,500,000, subject to the vesting provisions of the
       PSU Plan.

Headquartered in Toronto, Ontario, Canada, Cott Corp. --
http://www.cott.com/-- is one of the world's largest retailer  
to brand beverage suppliers whose principal markets are North
America, the United Kingdom and Mexico.  In addition to
carbonated soft drinks, the company's product lines include
clear, sparkling flavored beverages, juice-based products,
bottled water, energy drinks and iced teas.

                        *    *    *

As reported in the Troubled Company Reporter on Feb. 3, 2006,
Moody's Investors Service downgraded Cott Beverages, Inc.'s
Senior Subordinated Regular Bond/Debenture rating to B1 from Ba3
and Cott Corporation's Corporate Family Rating, to Ba3 from Ba2.  
The ratings outlook is stable, Moody's said.  

As reported in the Troubled Company Reporter on Jan. 31, 2006,
Standard & Poor's Ratings Services lowered its ratings on Cott
Corp. by one notch, including its corporate credit rating, to
'BB-' from 'BB'.  S&P said the outlook is negative.


EMPRESAS ICA: Inks Four Construction Contracts for MXN665.2MM
-------------------------------------------------------------
Empresas ICA, S.A. de C.V., signed four contracts with a total
value of MXN665.2 million.  Three civil construction contracts
were signed with public sector institutions for MXN389.2
million.  Additionally, ICA Fluor signed an industrial
construction contract with PEMEX for US$24 million.

The civil construction contracts made through direct assignment
by the Ministry of the Navy to Ingenieros Civiles Asociados,
S.A. de C.V., are:

   -- the construction of installations in the naval station
      at Isla Mujeres, Quintana Roo.  The fixed price contract
      for MXN118.8 million will be executed over 167 days,
      with scheduled delivery on November 30, 2006.  The
      project includes a building renovation and the
      provisional provision of services during the
      construction stage of the building; and

   -- the construction of installations in the naval station
      at Cozumel, Quintana Roo.  The mixed price contract for
      MXN56.3 million will be executed over a period of 167
      days, with scheduled delivery on Nov. 30, 2006. The
      project includes the construction of buildings and
      installations in the command and control center, the         
      administrative and services installations, and a clinic.

In addition, the National University of Mexico or UNAM awarded,
through an international public bidding process, the contract to
ICA for the construction of the Visual Arts Gallery Museum,
parking, and a plaza in the cultural zone of the University City
in Mexico City.  The fixed price contract for MXN214.2 million
will be executed over a term of 366 days, to be delivered in
June 2007.

Finally, ICA Fluor, the industrial engineering company jointly
owned by Fluor Corporation and ICA, signed a contract for the
fabrication of two super lightweight offshore platforms for
PEMEX.  The contract is a 198-day unit price project that
includes engineering, procurement, construction, load out, and
seabed fastening.  Scheduled completion is November 2006.  These
sleek and lightweight platforms, with a total weight of
approximately 1,600 tons, will be fabricated at Industria del
Hierro's Mata Redonda yards in Veracruz State, Mexico.  These
two structures will help increase oil production in PEMEX's
Southwest Region fields in the Gulf of Mexico.

Empresas ICA -- http://www.ica.com.mx/-- the largest
engineering, construction, and procurement company in Mexico,
was founded in 1947.  ICA has completed construction and
engineering projects in 21 countries.  ICA's principal business
units include civil construction and industrial construction.

Through its subsidiaries, ICA also develops housing, manages
airports, and operates tunnels, highways, and municipal services
under government concession contracts and/or partial sale of
long-term contract rights.

                        *    *    *

Standard & Poor's assigned these ratings to Empresas ICA, with
stable outlook:

   -- LT Foreign Issuer Credit B; and
   -- LT Local Issuer Credit B.


GREENBRIER COMPANIES: Earns US$10.7 Million in Third Quarter
------------------------------------------------------------
The Greenbrier Companies reported net earnings of US$13.7
million, excluding charges for a tentative settlement reached
with the Internal Revenue Service on a tax audit for the third
quarter of 2006.  The earnings are up 28% from net earnings,
excluding special charges for prepayment of certain debt, of
US$10.7 million for the third quarter of 2005.

The company's GAAP net earnings for the third quarter of 2006
grew 18% to US$10.7 million compared to GAAP net earnings of
US$9.0 million for the same period in fiscal 2005.  Its EBITDA
for the quarter increased 25% from the third quarter of fiscal
2005, to US$32.9 million, as a result of significant
manufacturing and leasing and services margin expansion.  EBITDA
was 12.4% of revenues for the quarter, compared to 9.2% of
revenues in the third quarter of fiscal 2005.

During the quarter, the company completed a US$100 million
convertible senior notes offering, which is immediately
accretive to earnings per share.  

According to the company, the offering further positions its
balance sheet and liquidity to act quickly on both organic and
acquisitive growth opportunities in its core businesses:  new
railcar and marine manufacturing, railcar repair and
refurbishment, and leasing and services.

                   Third Quarter Results

The company's revenues for the 2006 fiscal third quarter were
US$266 million, compared to US$286 million in the prior year's
third quarter, while its EBITDA increased to US$32.9 million, or
12.3% of revenues for the quarter, compared to US$26.3 million,
or 9.2% of revenues in the prior year's third quarter.  The
Company's net earnings also increased to US$10.7 million for the
quarter, compared to net earnings of US$9.0 million for the same
period in 2005.

Full-text copies of the Company's third quarter financials are
available for free at http://ResearchArchives.com/t/s?d24

Based in Lake Oswego, Oregon, The Greenbrier Companies --
http://www.gbrx.com/-- supplies transportation equipment and  
services to the railroad industry.  The Company builds new
railroad freight cars in its manufacturing facilities in the
U.S., Canada, and Mexico, and repairs and refurbish freight cars
and wheels at 17 locations across North America.  The Company
also builds new railroad freight cars and refurbishes freight
cars for the European market through both its operations in
Poland and various subcontractor facilities throughout Europe.
Greenbrier owns approximately 9,000 railcars, and performs
management services for approximately 135,000 railcars.

                        *    *    *

As reported in the Troubled Company Reporter on May 18, 2006,
Standard & Poor's Ratings Services assigned its 'B+' rating to
The Greenbrier Companies Inc.'s proposed US$85 million
convertible note offering, which will mature in 2026.  At the
same time, Standard & Poor's affirmed its ratings on the Lake
Oswego, Oregon-based railcar manufacturer, including its 'BB-'
corporate credit rating.  The outlook is stable.

As reported in the Troubled Company Reporter on Nov. 21, 2005,
Moody's Investors Service affirmed the B1 senior unsecured debt
rating of The Greenbrier Companies, as well as the company's Ba3
Corporate Family rating.  This affirmation takes into account an
additional US$60 million of notes added-on to the US$175 million
of 8.375% of Senior Notes due May 2015.  The rating outlook is
stable.


HERBALIFE INTERNATIONAL: To Undertake Potential Refinancing
-----------------------------------------------------------
Herbalife Ltd. and its indirect subsidiary Herbalife
International, Inc., disclosed that it is considering a
potential refinancing transaction with a new senior secured
credit facility. If the refinancing is consummated, certain of
the proceeds may be used to repay or redeem substantially all of
Herbalife's existing debt, including its outstanding 9 1/2%
Notes due 2011 and fund closing costs.

                      About Herbalife

Herbalife (NYSE:HLF) -- http://ir.herbalife.com/-- is a global  
network marketing company that sells weight-management,
nutritional supplements and personal care products intended to
support a healthy lifestyle.  Herbalife products are sold in 62
countries through a network of more than one million independent
distributors.  The company supports the Herbalife Family
Foundation and its Casa Herbalife program to bring good
nutrition to children.

                         *     *     *

As reported in the Troubled Company Reporter on July 4, 2006,
Moody's Investors Service rated the proposed bank loan of
Herbalife International, Inc. at Ba1 and upgraded the corporate
family rating to Ba1.  Herbalife will use proceeds from the new
debt to repay the existing term loan and to redeem the
$165 million issue of 9.5% senior subordinated notes.

At the same time, Standard & Poor's Ratings Services raised its
ratings on Herbalife International Inc., including its corporate
credit rating to 'BB+' from 'BB'.  Standard & Poor's also raised
its ratings on Herbalife's parent, Herbalife Ltd., including the
corporate credit rating to 'BB+' from 'BB'.  The outlook is
stable.


HOME PRODUCTS: Moody's Lowers Corporate Family Rating to Caa1
-------------------------------------------------------------
Moody's Investors Service lowered Home Product International,
Inc.'s corporate family rating to Caa1 from B2, and its senior
subordinated notes rating to Caa3 from Caa2.  The rating action
was prompted by HPI's weak credit metrics for the ratings
category, stemming from the continued negative impact of
escalated plastic resin costs on the company's earnings and cash
flows, and the company's inability to fully offset these with
price increases, as well as the company's limited financial
flexibility.  The ratings outlook remains negative, reflecting
Moody's concern that elevated material costs and challenging
market conditions will continue to pressure HPI's operating
performance, resulting in the likelihood for continued weak
credit metrics.

HPI's Caa1 corporate family rating is primarily driven by the
company's high leverage with credit metrics that are largely
consistent with a Caa credit profile.  The rating is also driven
by the company's exposure to volatile plastic resin prices,
manufacturing assets that are largely domiciled in a high-labor
cost region (United States), modest size, narrow product focus
on housewares, high customer concentration, and limited pricing
leverage given the fierce competition within the category.  
Notwithstanding these concerns, the ratings also consider the
company's leading market positions within niche product
categories, strong service capabilities, continued efforts to
streamline its manufacturing footprint, good product development
capabilities, long-standing relationships with key customers K-
Mart and Wal-Mart, and continued support from its senior lenders
as evidenced by the flexible financial covenants that were
enacted as part of the December 2005 amendment.

Home Products International, Inc. is a leading supplier of
value-priced laundry management products, general storage
products, closet storage products, bathware products and kitchen
storage products to large national retailers.  The company
reported revenues over US$200 million in 2005.


INTERNATIONAL WIRE: Closes Sale of Insulated Wire Businesses
------------------------------------------------------------
International Wire Group, Inc., disclosed the closing of the
sales of its insulated wire subsidiaries in the Philippines and
Mexico to Draka Holding N.V. and Draka Mexico Holding, S.A. de
C.V.  These transactions, together with the sale of certain U.S.
insulated wire assets to Copperfield, LLC in November 2005 and
the subsequent collection of retained accounts receivable,
complete IWG's exit from the insulated wire business.

Mark K. Holdsworth, Chairman of the Board of Directors of IWG,
said, "The Draka transactions, which closed on July 3, 2006,
complete the process of exiting the insulated wire business
world-wide.  Net cash proceeds from the exit of the insulated
wire business since November 2005 total approximately US$75
million.  We are quite pleased with the results of this
important strategic initiative.  Moreover, we were also able to
complete the acquisition of IWG High Performance Conductors,
Inc. on March 31, 2006, and establish a strong market presence
in specialty high-performance conductors for the aerospace,
medical device and sensor industries."

Rodney D. Kent, Chief Executive Officer, stated, "In addition to
strengthening our balance sheet, the exit from the insulated
wire business will help facilitate our continued focus on
growing key areas within our core bare wire markets and
specialty high-performance conductors business." Mr. Kent added,
"The Company continues to grow in these two businesses, and with
substantial scale, we expect to continue to be able to better
serve our customer needs."

International Wire Group, Inc. is a manufacturer and marketer of
wire products, including bare, silver-plated, nickel-plated and
tin-plated copper wire, for other wire suppliers and original
equipment manufacturers or "OEMs".  Their products include a
broad spectrum of copper wire configurations and gauges with a
variety of electrical and conductive characteristics and are
utilized by a wide variety of customers primarily in the
aerospace, appliance, automotive, electronics and data
communications, industrial/energy and medical device industries.  
The company manufactures and distributes its products at 13
facilities located in the United States, Belgium, France, Italy,
Mexico and the Philippines.

                        *    *    *

Standard & Poor's assigned these ratings on International Wire:

    -- Long-term foreign issuer credit: D, and
    -- Long-term local issuer credit: D.


MERIDIAN AUTOMOTIVE: Court Approves Hilco Appraisal's Retention
---------------------------------------------------------------
The Honorable Mary F. Walrath of the U.S. Bankruptcy Court for
the District of Delaware authorized Meridian Automotive Systems,
Inc., and its debtor-affiliates to employ Hilco Appraisal
Services, LLC, as appraiser, nunc pro tunc to May 26, 2006.

Judge Walrath modifies the Engagement Letter on the employment
of Hilco Appraisal Services, LLC, to exclude the limitation of
liability provision.

As reported in the Troubled Company Reporter on June 14, 2006,
Hilco will perform separate machinery and equipment appraisals
for the Prospective Lenders and the Debtors.

Hilco will physically appraise the Debtors' machinery and
equipment located at:

           Location                         Size in Sq. Ft.
           --------                         ---------------
           Ionia, Michigan                       650,318
           Ionia, Michigan                        94,700
           Grabill, Indiana                      447,000
           Huntington, Indiana                   180,000
           Shelbyville, Indiana                  432,000
           Lenoir, North Carolina                131,091
           Kentwood, Michigan (Plant #1)         207,000
           Kentwood, Michigan (Plant #5)         244,000
           Kentwood, Michigan (Plant #7)         268,000
           Kentwood, Michigan (29th St.)          52,000
           Angola, Indiana                       115,000
           Angola, Indiana                        73,000
           Canton, Michigan                      120,000
           Detroit, Michigan                     306,000
           Detroit, Michigan                      67,765
           Kansas City, Kansas                   200,000
           Shreveport, Louisiana                  72,000
           Brantford, Ontario                    172,000
           Rushville, Indiana                     97,000
           Salisbury, North Carolina             282,000
           Grabill, Indiana (SMC)                 62,000
           Fowlerville, Michigan                 234,000
           Newton, North Carolina                 65,000
           Jackson, Ohio                         217,000

The appraisal to be used by the Debtors in connection with their
fresh start accounting will also focus on those machinery and
equipment, assessing their "fair value" in accordance with
Statement of Position No. 90-7:

           Location                         Size in Sq. Ft.
           --------                         ---------------
           Ionia, Michigan                       650,318
           Ionia, Michigan                        94,700
           Grabill, Indiana                      447,000
           Huntington, Indiana                   180,000
           Shelbyville, Indiana                  432,000
           Lenoir, North Carolina                131,091
           Kentwood, Michigan (Plant #1)         207,000
           Kentwood, Michigan (Plant #5)         244,000
           Kentwood, Michigan (Plant #7)         268,000
           Kentwood, Michigan (29th St.)          52,000
           Angola, Indiana                       115,000
           Angola, Indiana                        73,000
           Canton, Michigan                      120,000
           Detroit, Michigan                     306,000
           Detroit, Michigan                      67,765
           Kansas City, Kansas                   200,000
           Shreveport, Louisiana                  72,000
           Brantford, Ontario                    172,000
           Rushville, Indiana                     97,000
           Salisbury, North Carolina             282,000
           Grabill, Indiana (SMC)                 62,000
           Fowlerville, Michigan                 234,000
           Newton, North Carolina                 65,000
           Jackson, Ohio                         217,000
           Muzquiz, Mexico                       220,000
           Celaya, Mexico                        102,000
           Rio Claro, Brazil                     226,000

Hilco will perform an orderly liquidation value appraisal of the
Debtors' inventory, to be used as part of the Prospective
Lenders' due diligence, delineated between raw materials, work-
in-progress, and finished good inventory categories, Mr. Brady
tells the Court.

With respect to the Debtors' real estate, Hilco will estimate
the market value of several of the Debtors' properties located
in the United States.  This appraisal will be used in connection
with the Debtors' fresh start accounting.

The Debtors propose to pay Hilco a flat fee for each of these
appraisals:

                Appraisal                     Fee
                ---------                     ---
                Inventory                   US$48,500
                Machinery & Equipment      US$138,000
                Real Estate                 US$76,500

The Debtors will pay Hilco a US$50,000 retainer, which will be
applied to the total fees charged by Hilco.

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. 31; Bankruptcy Creditors'
Service, Inc., 215/945-7000).


NORTEL NETWORKS: Unit Closes Offering of US$2-Bil. Senior Notes
---------------------------------------------------------------
Nortel Networks Corp. disclosed the closing of the previously
announced offering of US$2 billion aggregate principal amount of
senior notes by its principal direct operating subsidiary,
Nortel Networks Limited or NNL, to qualified institutional
buyers pursuant to Rule 144A under the U.S. Securities Act of
1933, as amended, and to persons outside of the United States
pursuant to Regulation S under the Securities Act.
    
The Notes issued by NNL consist of:

   -- US$450 million of Senior Notes due 2016,
   -- US$550 million of Senior Notes due 2013, and
   -- US$1 billion of Floating Rate Senior Notes due 2011

and are fully and unconditionally guaranteed by the company and
initially guaranteed by the company's indirect subsidiary,
Nortel Networks Inc. or NNI.
    
The 2016 Fixed Rate Notes will pay interest semi-annually at a
rate per annum of 10.75%, the 2013 Fixed Rate Notes will pay
interest semi-annually at a rate per annum of 10.125%, and the
Floating Rate Notes will pay interest quarterly at a rate per
annum, reset quarterly, equal to three-month LIBOR plus 4.25%.
    
NNL expects that the net proceeds from the sale of the Notes
will be approximately US$1,956 million, after deducting
commissions payable to the initial purchasers and other offering
expenses. NNL has used US$1.3 billion of these net proceeds to
prepay the US$1.3 billion one-year credit facility that NNI
entered into in February 2006, and expects to use the remainder
for general corporate purposes, including to replenish recent
cash outflows of US$150 million for the repayment at maturity of
the outstanding aggregate principal amount of the 7.40% Notes
due June 15, 2006 issued by the Company's indirect finance
subsidiary, Nortel Networks Capital Corporation, and fully and
unconditionally guaranteed by NNL, and US$575 million (plus
accrued interest of US$5 million) deposited into escrow on June
1, 2006 pursuant to the proposed class action settlement first
announced on February 8, 2006.
    
The Notes and the related guarantees have not been registered
under the Securities Act or the securities laws of any other
jurisdiction and may not be offered or sold in the United States
or to or for the benefit of U.S. persons unless so registered
except pursuant to an exemption from, or in a transaction not
subject to, the registration requirements of the Securities Act
and applicable securities laws in other jurisdictions.  

                    About Nortel Networks

Headquartered in Ontario, Canada, Nortel Networks Corporation
-- http://www.nortel.com/-- is a recognized leader in  
delivering communications capabilities that enhance the human
experience, ignite and power global commerce, and secure and
protect the world's most critical information.  Serving both
service provider and enterprise customers, Nortel delivers
innovative technology solutions encompassing end-to-end
broadband, Voice over IP, multimedia services and applications,
and wireless broadband designed to help people solve the world's
greatest challenges.  Nortel does business in more than 150
countries including Mexico.

                        *    *    *

As reported in the Troubled Company Reporter on June 20, 2006,
Moody's Investors Service affirmed the B3 corporate family
rating of Nortel; assigned a B3 rating to the proposed US$2
billion senior note issue; downgraded the US$200 million 6.875%
Senior Notes due 2023 and revised the outlook to stable from
negative.

Standard & Poor's Ratings Services removed its ratings on
Brampton, Ontario-based Nortel Networks Limited from CreditWatch
with negative implications, where they were placed
March 10, 2006, following a ratings review.

At the same time, Standard & Poor's affirmed its 'B-' long-term
and 'B-2' short-term corporate credit ratings on the company,
and assigned its 'B-' senior unsecured debt rating to the
company's proposed US$2 billion notes.  The outlook is stable.




===========
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CHIQUITA BRANDS: No Agreement on Banana Sales Reached with Gov't
----------------------------------------------------------------
No final agreement on banana sales was reached between Chiquita
Brands and the government of Panama, Fresh Plaza reports.

As reported in the Troubled Company Reporter-Latin America on
July 4, 2006, the government made a request to Chiquita Brands
regarding payment terms in the sales contract on Cooperativa de
Servicios Multiples de Puerto Armuelles RL aka Coosemupar
bananas.  A special government commission, which attends
Coosemupar's financial crisis, received a notice from Chiquita
saying that the latter's executives had not yet defined their
position towards the negotiation.  Chiquita said it would
disclose its position this week.  Delay of Chiquita's decision,
however, could be a problem as the Sitrachilco, a workers union,
set the deadline at the start of July.  A rupture might result
between Chiquita and Coosemupar.  

Chiquita refused to buy second-class fruit, as well as part of
the first class fruit, Alvaro Munoz, the legal advisor of
Sitrachilco, told Fresh Plaza.

Chiquita did not acquire 300,000 boxes in the first half of 2006
and it is expected the number will go beyond 800,000 in the
second semester, which would mean a loss of US$10 million to
Coosemupar, Fresh Plaza relates, citing Mr. Munoz.  The prices
will be reduced to US$0.55 during the second semester, which
will only worsen the crisis.

The governmental commission had asked Sitrachiclo for a little
more time to convince Chiquita to renegotiate new long term
sales conditions, including modifications to the existing
contracts.   However, Sitrachilco, together with the Coosemupar
workers, don't want to postpone a decision any longer.   
Sitrachilco said that the Panamanian government has been too
"soft" on Chiquita.

Manuel Jose Paredes, the minister of internal affairs, told
Fresh Plaza that the time has come to take decisions on the
matter.

                      About Coosemupar

Moltiple Services Cooperative (Coosemupar) produces half the
bananas exported from Panama on 3,000 hectares of land.  It is
formally owned by the workers.  This cooperative is led by
members of the Armuelles banana workers union, Sindicato
Industrial de Trabajadores de la Chiriqui Land Co y Empresas
Afines or Sitrachilco.

                    About Chiquita Brands

Chiquita Brands International is a Cincinnati, Ohio-based
producer and distributor of bananas and other produce, under a
variety of subsidiary brand names, collectively known as
Chiquita.  Chiquita is the successor to the United Fruit Company
and is the leading distributor of bananas in the United States.
The company also owns a German produce distribution company,
Atlanta AG, which it acquired in 2003.  It markets, produces and
distributes fresh fruits, processed fruits and vegetable
products.

On June 15, 2006, Standard & Poor's Ratings Services affirmed
its ratings on Cincinnati, Ohio-based Chiquita Brands
International Inc., including the 'B+' corporate credit rating.
S&P said the rating outlook is negative.


* PANAMA: IDB Loans US$5 Million to Improve Investment Climate
--------------------------------------------------------------
The Inter-American Development Bank approved a US$5-million loan
to Panama for a program to strengthen public institutions
responsible for reforms to attain macroeconomic stability,
improve the investment climate and prepare the country for free
trade.

The program will complement the fiscal reforms undertaken by
Panama to boost growth and competitiveness.  The IDB is
supporting those reforms with a US$100 million loan approved in
March.

The new operation will finance technical assistance for the
ministries and government agencies responsible for the reforms
as well as for public institutions involved in improving
conditions for private sector investment and competitiveness.

Activities will be carried out by the Ministry of Economy and
Finance, through its Technical Unit for Public Policy, with the
participation of the:

   -- Ministry of Trade and Industry,

   -- National Department for Science and Technology,

   -- National Commission for Transparency against Corruption
      or CNTC,

   -- National Procurement Office or PanamaCompra,

   -- Panama Maritime Authority and the Civil Aviation
      Authority.

The program will finance technical assistance, studies and
consensus-building to improve the allocation of fiscal resources
for productive activities and support the implementation of the
social security fund's new functions and the participation of
the private sector in port, airport and job training services.

Assistance will be provided to develop e-commerce, improve the
PanamaCompra e-procurement system and strengthen the management
of public sector assets and liabilities.  Among the new
institutions to be strengthened are the Consumer Protection and
Competition Authority and the National Office for the
Administration of Trade Agreements and Remedies.

The loan is for 10 years, with a four-year grace period and a
variable interest rate.

                        *    *    *

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


* PARAGUAY: Hopes to Stimulate Exports of Fresh Produce
-------------------------------------------------------
The government of Paraguay hopes to stimulate the exports of
fresh produce by fusing national producers of fruit and
vegetables in one branch organization, Fresh Plaza reports.

Fresh Plaza relates that around 50 firms from the sector
participated in a meeting last week where they discussed
strategies to boost the competitiveness of the country's fresh
produce on the international market.

The Paraguayan trade and industry ministry has offered its
support to the exporters through Rediex, an investment and
exports working group.

Horacio Miranda, the coordinator of Rediex, will work on the
development of a common vision for the produce sector as well as
for the training of management personnel through export and
promotion activities.

Rediex will also prepare market research of export markets,
Fresh Plaza states.

                        *    *    *

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




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TELEFONICA DEL PERU: Deploys Lima-Huancayo Fiber Optic Network
--------------------------------------------------------------
Telefonica del Peru, a subsidiary of Spain's Telefonica, has
installed a fiber optic network that would run 270km between
Lima and Huancayo, according to online news service
Telcommunity.

Business News Americas reports that with the network, Telefonica
del Peru aims to have 640,000 broadband connections by the end
of 2008.  At the end of 2005, the company was able to obtain
360,000 connections.  

BNamericas states that Telefonica del Peru aims to increase the
bandwidth to:

   -- Huancayo,
   -- Jauja,
   -- Concepcion,
   -- Yauli, and
   -- Chupaca.

The new network also allows Telefonica del Peru to boost the
quality of all its telecommunications services -- like mobile
and fixed line telephony -- in the area, BNamericas relates.

Telefonica del Peru is one of the world leaders in
Telecommunications with presence in Europe, Africa, and Latin
America.

                        *    *    *

As previously reported on Sept. 22, 2005, Fitch Ratings affirmed
Telefonica del Peru S.A.A.'s international scale local currency
unsecured debt rating at BBB+ and foreign currency unsecured
debt rating at BB and has assigned a 'BB' rating to its
proposed US$200 million senior unsecured notes to be issued in
PEN currency and paid in USD currency.  Fitch said the rating
outlook is stable.

On April 24, 2006, in conjunction with the roll out of Issuer
Default Ratings and Recovery Ratings for Latin America
Corporates, Fitch Ratings upgraded the previous BB Rating on its
US$754 million Senior Unsecured Notes due 2016 to BBB-.




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


UNIVISION COMMS: Televisa Won't Participate in Umbrella Merger
--------------------------------------------------------------
Grupo Televisa, S.A., reported that it has made a filing with
the SEC on Schedule 13D in which it announces, among other
things, that it has sent a letter dated June 30, 2006, informing
Umbrella Holdings, LLC, the group led by Providence Equity, that
Televisa will not be rolling over its shares in Univision as
permitted under the Merger Agreement between Univision and
Umbrella Holdings.
    
Moreover, in the Schedule 13D filing, Televisa states that if
its holdings in Univision fall below 13,578,084 shares of class
T common stock, whether pursuant to the closing contemplated by
the Merger Agreement or through the sale or sales of such
holdings by Televisa, the company will no longer be bound by the
Participation Agreement dated October 2, 1996, by and among
Televisa, A. Jerrold Perenchio, Gustavo and Ricardo Cisneros,
and Venevision, subject to a limited exception.
    
If Televisa is not bound by the Participation Agreement, it will
be able to engage in new business opportunities in the growing
U.S. Hispanic marketplace relating to its programming or
otherwise without offering Univision participation in such
opportunities.

However, Televisa stated in its letter to Umbrella Holdings that
it is prepared to discuss with the latter a sale of its shares
of Univision as soon as possible based on the present value of
the price per share set in the Merger Agreement.

                    About Grupo Televisa

Grupo Televisa, S.A., is the largest media company in the
Spanish-speaking world and a major participant in the
international entertainment business.  It has interests in
television production and broadcasting, production of pay
television networks, international distribution of television
programming, direct-to-home satellite services, publishing and
publishing distribution, cable television, radio production and
broadcasting, professional sports and live entertainment,
feature film production and distribution, and the operation of a
horizontal Internet portal.  Grupo Televisa also owns an
unconsolidated equity stake in Univision, the leading Spanish-
language media company in the United States, and in La Sexta, a
free-to-air television venture in Spain.

                     About Univision

Headquartered in Los Angeles, Calif., Univision Communications
Inc., a Spanish-language broadcaster, owns and operates more
than 60 television stations in the US and Puerto Rico offering a
variety of news, sports, and entertainment programming.  The
company had about US$1.4 billion in debt at March 31, 2006.

                        *    *    *

Standard & Poor's Ratings Services lowered on July 1, 2006, its
corporate credit and senior unsecured notes ratings on Univision
Communications Inc. to BB- from BBB-, based on the company's
agreement in principle to a US$12.3 billion (excluding existing
debt) LBO led by investor group Madison Dearborn Partners LLC.  
All ratings, including the BBB- rating on the company's credit
facility, remain on CreditWatch, with implications revised to
negative from developing.  The ratings were originally placed on
CreditWatch on Feb. 9, 2006, after the company announced it was
exploring strategic alternatives.

                        *    *    *

Fitch downgraded on June 29, 2006, Univision's IDR and senior
unsecured debt ratings to 'BB' from 'BBB-'.  The ratings remain
on Rating Watch Negative.




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


BWIA WEST: Employs Catalise UK as Restructuring Advisor
-------------------------------------------------------
British West Indies Airways aka BWIA has hired London-based
consultants Catalise UK Ltd. to assist its management in
restructuring the airline, the Trinidad Guardian reports.

"Catalise has the experience and the knowledge to identify areas
of improvement and change for BWIA," Dionne Ligoure, corporate
communications manager at BWIA, confirmed to the Guardian.

In its Web site, Catalise said that it's "advising the board of
BWIA and the Government of Trinidad & Tobago (the majority
shareholder) to turn around the national airline."

"Catalise faced a challenging task to prepare a comprehensive
restructuring plan within six weeks to address the cash crisis.  
The government has agreed in principle to support the plan by a
proposed cash injection of US$250 million," the company's
statement said.

"Following the approval by the board of our restructuring plan,
Catalise have now been retained to lead the restructuring
process. All aspects of the airline are being examined to
improve operational and financial performance, inclusive of a
pending strategy review, which will take the airline to a
sustainable and profitable future," the company statement
continued.

"In a short space of time, we have implemented a number of
practical solutions leading to significant savings," the
bulletin read.

According to Ms. Ligoure, the government's infusion of the
US$250 million was "contingent on its acceptance of the new
collective agreement," the Guardian says.

BWIA was founded in 1940, and for more than 60 years has been
serving the Caribbean islands from Trinidad and Tobago, the hub
of the Americas, linking the twin island republic and many other
Caribbean islands with North America, South America, the United
Kingdom and Europe.

The airline has reportedly been losing US$1 million a week due
to poor operational management.  An employee survey revealed
that lack of responsibility by the management is a major issue
in the company.


BWIA WEST: Union Says Retrenchment May Affect Safety Record
-----------------------------------------------------------
Raymond Small -- the secretary general of the Communications,
Transport and General Workers Trade Union or CATTU -- said in a
press conference that the recent loss of maintenance staff as
well as the possible retrenchment of more than 50% of workers at
British West Indies Airway aka BWIA may put the airline's safety
record in jeopardy, the Trinidad and Tobago Express reports.

Peter Davies, the Chief Executive Officer of BWIA, admitted
during the negotiation meetings between the company and CATTU
that retrenchment of staff is possible.  However, Mr. Davies did
not say an exact number of workers to be fired, The Express
relates, citing Mr. Small.

Mr. Small told The Express, "There will be retrenchment, but not
until negotiations are complete.  This is as much as Davies has
told us.  Davies had a meeting with the management staff and
worked out that they could lose 100 workers per aircraft, based
on the number of aircraft BWIA has presently, and staff that
could be a surplus of 800 (workers).  He (Davies) actually told
us at one of the meetings that maintenance staff-engineers,
mechanics and technicians-would not be retrenched.  However,
'back office' staff will be retrenched."

According to the report, Mr. Small said that engineers are
leaving BWIA due to inadequate wages.  Five engineers have
already left the airline this year.

To deal with the loss, CATTU released a statement saying that
the union has received information that BWIA is making attempts
to recruit maintenance and engineering staff who were retrenched
three years ago and recruit foreign maintenance staff whose
qualifications have to be verified, The Express relates.

BWIA was founded in 1940, and for more than 60 years has been
serving the Caribbean islands from Trinidad and Tobago, the hub
of the Americas, linking the twin island republic and many other
Caribbean islands with North America, South America, the United
Kingdom and Europe.

The airline has reportedly been losing US$1 million a week due
to poor operational management.  An employee survey revealed
that lack of responsibility by the management is a major issue
in the company.




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


* URUGUAY: Will Build US$150 Mil. Transmission Line with Brazil
---------------------------------------------------------------
The Uruguayan government has agreed with its Brazilian
counterpart to construct a US$150 million transmission line that
would run 400km between the two nations, the mines and energy
ministry of Brazil said in a statement.

Business News Americas relates that the agreement ratifies an
accord entered by the two countries in March.

The 500-kilovolt-transmission line would link Candiota, Brazil,
and San Carlos, Uruguay, BNamericas states.  The line would
increase the power transmission capacity between Uruguay and
Brazil beyond the current 72 megawatts.

The Uruguayan government will invest in the project and operate
it.  The government is interested in gaining access to the power
transmission of Brazil to boost local supply.

According to BNamericas, officials from the two countries are
also negotiation on the construction of a 300-megawatt coal-
fired power generation project in Candiota to export power to
Uruguay.

Uruguay and Brazil will conduct feasibility studies for the
transmission line, BNamericas states.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
May 26, 2006, Fitch Ratings revised the Outlooks on the Oriental
Republic of Uruguay's Sovereign ratings to Positive from Stable.
The long-term foreign currency Issuer Default Rating is affirmed
at 'B+', and the long-term local currency IDR is affirmed at
'BB-'.  The Short-term IDR is affirmed at 'B' and the Country
Ceiling is affirmed at 'BB-'.

                        *    *    *

Moody's upgraded Uruguay's long-term foreign currency rating to
B1 from B3 under the revised foreign currency ceilings on
May 24, 2006.




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


BANCO NACION: Opens Representative Office in Caracas
----------------------------------------------------
Banco Nacion, a federally owned bank in Argentina, said in a
press release that it has opened a representative office in
Caracas, Venezuela.

The new office will seek to fund exports and encourage trade
between Argentina and Venezuela, Banco Nacion told Business News
Americas.

Banco Nacion is Argentina's largest bank with assets and
deposits of 46 billion pesos and 31.1 billion pesos respectively
at November 30, 2005.

                        *    *    *

On Jan. 11, 2006, Fitch Ratings affirmed its long-term deposit
rating of BB+ with a stable outlook and short-term deposit
rating of N-3 on the Chilean unit of Argentine bank Banco
Nacion.

Fitch attributed the ratings to the unit's historical
performance, the reduced size of its operations, adequate
liquidity and debt levels as well as low asset risks.

The unit's assets totaled CLP18.4 billion (US$35 million) at
end-November and deposits amounted to CLP2.34 billion.


CERRO NEGRO: Fitch's B+ Downgrade Shows Policy Shifts in Country
----------------------------------------------------------------
On May 11, 2006, Fitch Ratings lowered the senior secured debts
of:

   -- Petrozuata Finance Inc.,
   -- Cerro Negro Finance, Ltd.,
   -- Sincrudos de Oriente Sincor, C.A., and
   -- Petrolera Hamaca, S.A.

from 'BB' to 'B+'.  The ratings remain on Rating Watch Negative.

The downgrade considers the ongoing policy shifts affecting
private and foreign hydrocarbon producers in Venezuela.  
Specifically, on May 11, the National Assembly amended the
Organic Hydrocarbon law of 2001 to levy a new oil extraction tax
at the rate of 33.33% on the strategic associations for the
development of extra-heavy crude oil of the Orinoco Basin.  The
Rating Watch Negative signals that additional downgrades are
highly probable in the short term.  The expectation of further
credit deterioration considers the government's announced
intention to restructure the association agreements between
Petroleos de Venezuela S.A. aka PDVSA and the foreign producers
participating in the projects as "Mixed Enterprises."  The
restructuring could seriously impair the projects operations,
assuming that the legal and economic hurdles to affect it are
overcome.  In essence, the downgrade and Negative Watch status
are directly attributable to government policy.

"Notwithstanding the rating downgrade and Negative Watch status,
all our projects are operating successfully and exceeding
expectations. Were it not for the actions and intentions of the
government, the projects' debt ratings would be significantly
higher," according to Gersan Zurita, a Senior Director of
Project Finance at Fitch Ratings.

The strong fiscal and operating performance of the four EHCO
projects demonstrates that despite the unanticipated increase in
royalties that took effect during the last quarter of 2004,
buoyant oil prices lifted cash flows available for operating
expenses, capital expenditures and scheduled debt service above
expectations.  However, Fitch's revised project economics for
the medium term are weaker.  Higher royalties and taxes,
persistent double-digit inflation in Venezuela, lower oil prices
and the government's imposed limits on production, could result
in net revenue declines of as much as 80%. Under these
assumptions, the ability of the projects to service debt
obligations in full could be impaired by 2011 or earlier.  This
negative outlook contrasts sharply with the original base-case
assumptions, which suggested the projects would continue to
cover amply all of their fixed operating expenses and
debt-service payments, even with prices considerably lower than
historical averages.

Although Fitch believes the projects are more vital to Venezuela
today than when they were initiated, Fitch expects that if, as a
result, PDVSA takes over full operating control of the projects
rather than just a greater stake in the revenue and profits, the
future economic viability of the four EHCO projects would become
increasingly uncertain.

Cerro Negro is an unincorporated joint venture formed in 1997
among three subsidiaries of these sponsors:

   -- ExxonMobil (Mobil Cerro Negro, Ltd., 41.67%),
   -- PDVSA (PDVSA Cerro Negro, S.A., 41.67%) and
   -- Veba Oel--now BP plc-- (Veba Oil and Gas Cerro Negro
      GmbH 16.66%).

Under a 35-year offtake agreement, all of Cerro Negro's
production is received by Chalmette Refinery LLC (a joint
venture of Mobil and PDVSA) in Louisiana and Veba Oel's refinery
system in Germany.


CITGO PETROLEUM: Lake Charles Plant Back to Planned Output Rates
----------------------------------------------------------------
Citgo Petroleum Corp. told Reuters that its 430,000 barrel per
day (bpd) plant in Lake Charles, Louisiana, was operating with a
capacity the company expected before the spill.

According to Reuters, the refinery's production was cut down due
to a closure of the Calcasieu Ship Channel that lasted for 10
days.  It is through the channel that tankers carrying the
supply of oil and byproducts for the refinery pass through.

As reported in the Troubled Company Reporter-Latin America on
June 26, 2006, a United States coastguard said the Calcasieu
channel was closed due to heavy rains that started two weeks
ago, overwhelming the wastewater storage tanks and pollution-
control dikes at Citgo's Clifton Ridge Terminal and resulting to
a release of oil and water into the channel.  A Citgo
spokesperson said that the closure of the channel was not
affecting output at the Lake Charles refinery.

The Troubled Company Reporter-Latin America reported on
June 29, 2006, that Citgo received approval for a loan of
250,000 barrels of crude oil from the Strategic Petroleum
Reserve.  The loan helped maintain production rates at Citgo's
Lake Charles Manufacturing Complex while the Calcasieu Ship
Channel was closed.

A US Coast Guard spokesperson told Reuters that tankers and
barges are already moving at reduced speed in and out of the
channel Tuesday afternoon.

Production at the refinery is below full capacity due to the
maintenance work on a crude distillation unit, Reuters relates,
citing S. Shawn Trahan, a spokesperson of the refinery.  

"We're not at full capacity.  We're at the capacity we expected
before the oil spill," Ms. Trahan told Reuters.

Headquartered in Houston, Texas, CITGO Petroleum Corporation
-- http://www.citgo.com/-- is owned by PDV America, an
indirect, wholly owned subsidiary of Petroleos de Venezuela
S.A., the state-owned oil company of Venezuela.

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.

                        *    *    *

As reported at the Troubled Company Reporter on Feb. 16, 2006,
Standard and Poor's Ratings Services assigned a 'BB' rating on
CITGO Petroleum Corp.


PETROLERA HAMACA: Fitch Downgrades Senior Debt Rating to B+
-----------------------------------------------------------
On May 11, 2006, Fitch Ratings lowered the senior secured debts
of:

   -- Petrozuata Finance Inc.,
   -- Cerro Negro Finance, Ltd.,
   -- Sincrudos de Oriente Sincor, C.A., and
   -- Petrolera Hamaca, S.A.

from 'BB' to 'B+'.  The ratings remain on Rating Watch Negative.

The downgrade considers the ongoing policy shifts affecting
private and foreign hydrocarbon producers in Venezuela.  
Specifically, on May 11, the National Assembly amended the
Organic Hydrocarbon law of 2001 to levy a new oil extraction tax
at the rate of 33.33% on the strategic associations for the
development of extra-heavy crude oil of the Orinoco Basin.  The
Rating Watch Negative signals that additional downgrades are
highly probable in the short term.  The expectation of further
credit deterioration considers the government's announced
intention to restructure the association agreements between
Petroleos de Venezuela S.A. aka PDVSA and the foreign producers
participating in the projects as "Mixed Enterprises."  The
restructuring could seriously impair the projects operations,
assuming that the legal and economic hurdles to affect it are
overcome.  In essence, the downgrade and Negative Watch status
are directly attributable to government policy.

"Notwithstanding the rating downgrade and Negative Watch status,
all our projects are operating successfully and exceeding
expectations. Were it not for the actions and intentions of the
government, the projects' debt ratings would be significantly
higher," according to Gersan Zurita, a Senior Director of
Project Finance at Fitch Ratings.

The strong fiscal and operating performance of the four EHCO
projects demonstrates that despite the unanticipated increase in
royalties that took effect during the last quarter of 2004,
buoyant oil prices lifted cash flows available for operating
expenses, capital expenditures and scheduled debt service above
expectations.  However, Fitch's revised project economics for
the medium term are weaker.  Higher royalties and taxes,
persistent double-digit inflation in Venezuela, lower oil prices
and the government's imposed limits on production, could result
in net revenue declines of as much as 80%. Under these
assumptions, the ability of the projects to service debt
obligations in full could be impaired by 2011 or earlier.  This
negative outlook contrasts sharply with the original base-case
assumptions, which suggested the projects would continue to
cover amply all of their fixed operating expenses and debt-
service payments, even with prices considerably lower than
historical averages.

Although Fitch believes the projects are more vital to Venezuela
today than when they were initiated, Fitch expects that if, as a
result, PDVSA takes over full operating control of the projects
rather than just a greater stake in the revenue and profits, the
future economic viability of the four EHCO projects would become
increasingly uncertain.

Hamaca is sponsored by subsidiaries of:

   -- Phillips Petroleum (40%),
   -- PDVSA (30%) and
   -- Texaco (30%).

Ameriven oversaw construction and operates the project on behalf
of the sponsors.  Hamaca reached full commercial operations in
October 2004. Similar to Sincor, Hamaca sells its commercial
production volumes into the USGC refining market, and unlike
Petrozuata and Cerro Negro, Hamaca does not benefit from a
predesignated refining relationship to provide a secure outlet
for its production.


PETROZUATA: Fitch's Downgrade Reflects Policy Shifts in Country
---------------------------------------------------------------
On May 11, 2006, Fitch Ratings lowered the senior secured debts
of:

   -- Petrozuata Finance Inc.,
   -- Cerro Negro Finance, Ltd.,
   -- Sincrudos de Oriente Sincor, C.A., and
   -- Petrolera Hamaca, S.A.

from 'BB' to 'B+'.  The ratings remain on Rating Watch Negative.

The downgrade considers the ongoing policy shifts affecting
private and foreign hydrocarbon producers in Venezuela.  
Specifically, on May 11, the National Assembly amended the
Organic Hydrocarbon law of 2001 to levy a new oil extraction tax
at the rate of 33.33% on the strategic associations for the
development of extra-heavy crude oil of the Orinoco Basin.  The
Rating Watch Negative signals that additional downgrades are
highly probable in the short term.  The expectation of further
credit deterioration considers the government's announced
intention to restructure the association agreements between
Petroleos de Venezuela S.A. aka PDVSA and the foreign producers
participating in the projects as "Mixed Enterprises."  The
restructuring could seriously impair the projects operations,
assuming that the legal and economic hurdles to affect it are
overcome.  In essence, the downgrade and Negative Watch status
are directly attributable to government policy.

"Notwithstanding the rating downgrade and Negative Watch status,
all our projects are operating successfully and exceeding
expectations. Were it not for the actions and intentions of the
government, the projects' debt ratings would be significantly
higher," according to Gersan Zurita, a Senior Director of
Project Finance at Fitch Ratings.

The strong fiscal and operating performance of the four EHCO
projects demonstrates that despite the unanticipated increase in
royalties that took effect during the last quarter of 2004,
buoyant oil prices lifted cash flows available for operating
expenses, capital expenditures and scheduled debt service above
expectations.  However, Fitch's revised project economics for
the medium term are weaker.  Higher royalties and taxes,
persistent double-digit inflation in Venezuela, lower oil prices
and the government's imposed limits on production, could result
in net revenue declines of as much as 80%. Under these
assumptions, the ability of the projects to service debt
obligations in full could be impaired by 2011 or earlier.  This
negative outlook contrasts sharply with the original base-case
assumptions, which suggested the projects would continue to
cover amply all of their fixed operating expenses and debt-
service payments, even with prices considerably lower than
historical averages.

Although Fitch believes the projects are more vital to Venezuela
today than when they were initiated, Fitch expects that if, as a
result, PDVSA takes over full operating control of the projects
rather than just a greater stake in the revenue and profits, the
future economic viability of the four EHCO projects would become
increasingly uncertain.

Petrozuata benefits from long-term contractual commitments from
its two sponsors:

   -- ConocoPhillips (Issuer Default Rating of 'A-' Stable
      Outlook by Fitch), whose subsidiaries hold 50.1% of the
      equity in the project, and

   -- PDVSA (foreign currency IDR of 'BB-' Stable Outlook by
      Fitch), whose subsidiaries hold 49.9%.


SINCRUDOS DE ORIENTE: Fitch Lowers Senior Debt's Rating to B+
-------------------------------------------------------------
On May 11, 2006, Fitch Ratings lowered the senior secured debts
of:

   -- Petrozuata Finance Inc.,
   -- Cerro Negro Finance, Ltd.,
   -- Sincrudos de Oriente Sincor, C.A., and
   -- Petrolera Hamaca, S.A.

from 'BB' to 'B+'.  The ratings remain on Rating Watch Negative.

The downgrade considers the ongoing policy shifts affecting
private and foreign hydrocarbon producers in Venezuela.  
Specifically, on May 11, the National Assembly amended the
Organic Hydrocarbon law of 2001 to levy a new oil extraction tax
at the rate of 33.33% on the strategic associations for the
development of extra-heavy crude oil of the Orinoco Basin.  The
Rating Watch Negative signals that additional downgrades are
highly probable in the short term.  The expectation of further
credit deterioration considers the government's announced
intention to restructure the association agreements between
Petroleos de Venezuela S.A. aka PDVSA and the foreign producers
participating in the projects as "Mixed Enterprises."  The
restructuring could seriously impair the projects operations,
assuming that the legal and economic hurdles to affect it are
overcome.  In essence, the downgrade and Negative Watch status
are directly attributable to government policy.

"Notwithstanding the rating downgrade and Negative Watch status,
all our projects are operating successfully and exceeding
expectations. Were it not for the actions and intentions of the
government, the projects' debt ratings would be significantly
higher," according to Gersan Zurita, a Senior Director of
Project Finance at Fitch Ratings.

The strong fiscal and operating performance of the four EHCO
projects demonstrates that despite the unanticipated increase in
royalties that took effect during the last quarter of 2004,
buoyant oil prices lifted cash flows available for operating
expenses, capital expenditures and scheduled debt service above
expectations.  However, Fitch's revised project economics for
the medium term are weaker.  Higher royalties and taxes,
persistent double-digit inflation in Venezuela, lower oil prices
and the government's imposed limits on production, could result
in net revenue declines of as much as 80%. Under these
assumptions, the ability of the projects to service debt
obligations in full could be impaired by 2011 or earlier.  This
negative outlook contrasts sharply with the original base-case
assumptions, which suggested the projects would continue to
cover amply all of their fixed operating expenses and debt-
service payments, even with prices considerably lower than
historical averages.

Although Fitch believes the projects are more vital to Venezuela
today than when they were initiated, Fitch expects that if, as a
result, PDVSA takes over full operating control of the projects
rather than just a greater stake in the revenue and profits, the
future economic viability of the four EHCO projects would become
increasingly uncertain.

Sincor's US$5 billion oil development project is sponsored by:

   -- Total (47%),
   -- PDVSA (38%) and
   -- Statoil (15%).

The project, which achieved full completion in February 2006,
produces approximately 150,000 bpd of syncrude.  Unlike the
output of Petrozuata and Cerro Negro, Sincor's product is a 30
degrees - 32 degrees API low sulfur oil and production is not
designated to any offtaker.  Sincor relies on the unique
qualities of its syncrude for market acceptance.


                          ***********


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 * * *